MIRA INFORM REPORT

Report No. :	316194
Report Date :	23.04.2015

IDENTIFICATION DETAILS

Name :	CEYLON PENCIL COMPANY (PVT) LTD
Registered Office :	# 96, Parkrama Road, Peliyagoda.
Country :	Sri Lanka
Date of Incorporation :	29.09.1959
Com. Reg. No.:	PV 7125
Legal Form :	Private Limited Liability Company (In Operation)
Line of Business :	Manufactures, Exporters and Distributors of Stationary Products
No. of Employee :	Approximately 700

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Sri Lanka	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SRI LANKA ECONOMIC OVERVIEW

Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam. The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Agriculture slowed due to a drought and weak global demand affected exports and TRADE. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets.

Source : CIA

GENERAL

- Basic information at a glance

a.	Name of Subject of Inquiry	:	CEYLON PENCIL COMPANY (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director	:	Nirmal Anuradha Madanayake
d.	Primary Line of Business	:	Manufactures, Exporters and Distributors of Stationary Products
e.	Place of Business & Factory	:	# 96, Parakrama Road, Peliyagoda, Sri Lanka Tel. No: (00 94 11) 532 0320/ 291 2879 / 291 1482 Fax No: (00 94 11) 291 2878 / 291 1208 E Mail: info@atlas.lk marketing@atlas.lk
f.	No. of Employees	:	Approximately 700

COMPANY DETAILS

- Registration and Shareholder Details

a.	Registration No		:	PVS 1838
	Date of Registration			29^th September 1959
b.	Re-Registration No		:	PV 7125
	Date of Re-Registration		:	4^th September 2008
c.	Registered Office		:	# 96, Parkrama Road, Peliyagoda. Sri Lanka
d.	Board of Directors As At 14^th October 2014		:	Nirmal Anuradha Madanayake	Managing Director
				K. H. Kumudu Nishantha	Director
				J.A.D. Viraj Kanchana Jayasooriya	Director
				Muhammed Hamza	Director
				Albert Rasakantha Rasiah	Director
e.		Issued Share Capital	:	Rs. 92,292,880.00 (Total No. of Shares: 9,229,288)
f.		Nominal Value of Share	:	Not disclosed/stated vide Companies Act #7 of 2007
g.		Share Holders As At 14^th October 2014	:	Share Holders	No. of Shares
				Care Products (Pvt) Ltd	2,276,051
				Nirmal Anuradha Madanayake	6,953,237
h.		Auditors	:	PriceWaterhouse Coopers
i.		Company Secretaries	:	Businessmate (Pvt) Ltd
j.		Bankers	:	Hatton National Bank, Bank of Ceylon, National Development Bank, Commercial Bank

FINANCIAL DETAILS

- Most recent available Financial Information

The company has declined to provide information on its finances without the identity of the end user.

Note: Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited Liability is not required to make public disclosure of their annual financials. Therefore no financials are available for this entity

CURRENT INVESTIGATION

Company Logo

• History.

The Subject Company CEYLON PENCIL COMPANY (PVT) LTD is a Private Limited

Liability Company incorporated on 29^th September 1959 under registration No PVS 1838 and

Then the company was re-registered on 04^th September 2008 under registration number PV 7125.

The subject company has earned certified by ISO 9001-2008 certified company and well known

In the trade.

• Location.

The Subject Company is located at the client # 96, Parakrama Road, Peliyagoda, Sri Lanka, a town adjoining Colombo city.

• Operations Details.

General

The subject company primary line of business is Manufacture, Export and Distribution of Stationary Items.

Products

Pens

Pencils

Drawing Books

Excise Books

Colour Pencils

Hi-lighters/ markers

Permanent Markers

stapler-machines

Science Books

Erasers

Packaging materials for industrial packaging, such as gum tapes, BOPP tapes etc.

Export Countries

United States, England, Australia, Malaysia and Italy

No of Employees

Approximately 700

Achievements

ISO Certification - ISO 9001:2008 Awarded by the Det Norske Vertitas

5S Award - Taiko Akimoto 5S’ awarded by Japan Sri Lanka Technical and Cultural

Association.  (Years 2008, 2009, 2010)

The best performance in Printing Training - Year 2012 – Awarded by INGRIN Institute of

Printing Academy

Partners

• Directors’ Details:

01)

Name	Nirmal Anuradha Madanayake
Nationality	Sri Lankan
P.P No.	N 2572052
Address	#93, Rosemead Place, Colombo 07

02)

Name	K. H. Kumudu Nishantha
Sex	Male
Nationality	Sri Lankan
National ID No.	671071050 V
Date of Birth	16^th April,1967
Age	48 Years
Address	#137/C, Batahena Road, Suriyapaluwa, Kadawatha

03)

Name	J.A.D. Viraj Kanchana Jayasooriya
Sex	Male
Nationality	Sri Lankan
National ID No.	723513510 V
Date of Birth	16^th December,1972
Age	42 Years
Address	B.O.P.317, 20 Ela, Debarella, Thalpatha, Polonnaruwa

04)

Name	Muhammed Hamza
Sex	Male
Nationality	Sri Lankan
National ID No.	571520940 V
Date of Birth	31^st May,1957
Age	57 Years
Address	#272/6, High Level Road, Colombo 06

05)

Name	Albert Rasakantha Rasiah
Sex	Male
Nationality	Sri Lankan
National ID No.	453620158 V
Date of Birth	27^th December,1945
Age	69 Years
Address	#52A, Ward Place, Colombo 7

• Trade references

The Ceylon National Chamber of Industries

• Credit Recommendations

Since no financial information has been forthcoming from the company, it is not possible to comment on the merits or otherwise of the company.

No computerised data bases exist to make checks whether the partners or the company has any legal action or lawsuit initiated against any of them but informal (but not in-depth) checks do not indicate any such cases in the public knowledge.

Information denied

MANAGEMENT NON CO-OPERATIVE

CONTACT NO.: (009411) 5320320

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.82
UK Pound	1	Rs.93.85
Euro	1	Rs.67.59

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	ANK

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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