MIRA INFORM REPORT

 

 

Report No. :

320435

Report Date :

30.04.2015

 

IDENTIFICATION DETAILS

 

Name :

JAT HOLDINGS (PVT) LTD

 

 

Registered Office :

#351, Pannipitiya Road, Thalawathugoda

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

01.07.1993

 

 

Com. Reg. No.:

PV 8743

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Import and Supplier of Wood Coatings & Chemicals

 

 

No of Employees :

Approximately 250

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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

:

JAT HOLDINGS (PVT) LTD

b.

Legal Form  & Status

 

:

 

Private Limited Liability Company (In Operation)

c.

Managing Director

:

Aelian Winston Gunawardene

d.

Primary Line of Business

:

Import and Supplier of Wood Coatings & Chemicals

e.

Head Office

&

Place of Business

 

:

 

#351, Pannipitiya Road,
Thalawathugoda,

Sri Lanka.

 

Tel. No: (00 94 11)  440 7700

Fax No: (00 94 11)  277 3793 -4

 

E Mail: info@jatholdings.com

 

f.

Show Room

 

#.1, Narahenpita Road,
Nawala,

Sri Lanka.

 

Tel. / Fax. No: (00 94 11) 440 0108

g.

No. of Employees

:

Approximately 250

 

 

COMPANY DETAILS - Registration and Shareholder Details

 

a.

 

Registration No

:

N (PVS) 11277

Date of Registration

:

01st July 1993

b.

Re-registration No

 

PV 8743

Date of Re-registration

 

30th October 2008

c.

Registered Office

:

# 351, Pannipitiya Road, Thalawathugoda

d.

Board of Directors

As At

25th September 2014

:

A. Winston Gunawardene

Managing Director

A. Lakmal Gayan Perera

Director

 Indika Kushan Palinda Chandrasekera

Director

Sivakumar Selliah

Director

Jehan Prasanna Amaratunga

Director

Somasundaram Sivasubramaniam

Director

Total share Capital

:

Rs.628,770,000.00

No. of Shares

:

 

443,716,000

 

f.

Nominal Value of Share

:

Not applicable vide Companies Act #7 of 2007            

g.

Major Share Holders

As At

25th September 2015

:

 Major Share Holders (17 Share Holders)

No Of Shares

Held

A. Winston Gunawardene

246,992,000

V. Niranjalie Gunawardena (Ms)

120,000,000

J Chem Coatings (Pvt) Ltd

40,068,000

Sivakumar Selliah

1,320,000

Arunthathi Selliah

2,120,000

Abirampillai Kailasapillai

2,120,000

Sivamalar Subramaniam

2,120,000

Kailasapillai Aravinthan

1,320,000

h.

Auditors

:

KPMG Ford Rhodes Thornton and co.

(#32A, Sir Mohammed Macan Marker Mawatha, Colombo 03)

i.

Company Secretaries

 

R N H Holdings (Pvt) Ltd 

(# 107, Dewala Road, Nugegoda)

j.

Bankers

 

Sampath Bank

 

 

Director’s Details

 

01)

Name

A. Winston Gunawardene

ID Number

663652605 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

30th  December 1966

Age

48 Years

Address

#501, Ruwan Lane, Off Udumulla Road, Battaramulla.

 

02)

Name

A. Lakmal Gayan Perera

ID Number

691900690 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

08th  July 1969

Age

45 Years

Address

#10/112, Nawetiya Road, Bekkegama, Panadura.

 

03)

Name

C. Indika Kushan Palinda

ID Number

720551730 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

24th February 1972

Age

43 Years

Address

#219, Pepiliyana, Boralesgamuwa.

 

04)

Name

Sivakumar Selliah

ID Number

593441415 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

09th December 1959

Age

55 Years

Address

#11415, Rosmead Place, Colombo 07.

 

05)

Name

Jehan Prasanna Amaratunga

ID Number

592880369 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th October 1959

Age

55 Years

Address

#05, Rajawatta Terrace, Colombo 05.

 

06)

Name

Somasundaram Sivasubramaniam

ID Number

750111629 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

11th January 1975

Age

40 Years

Address

#125/10, 16th Lane, College Street, Colombo 13.

 

 

FINANCIAL DETAILS - Most recent available Financial Information                                    

 

Subject company declined to provide financials without the identity of the end user of the enquiry

 

It should be noted that the particular industry/trade segment the company is involved has very good growth potential and as such it can be expected for the company to have a good Income.

 

                                  

(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

                                                         New Picture (1)

                                       

·         History.

 

                  The Subject Company JAT HOLDINGS (PVT) LTD is a Private    Limited   Liability Company incorporated on 01st July 1993 under registration number N (PVS) 11277, and the company was re-registered on 30th October 2008 under registration number PV 8743.

JAT Holdings (Pvt) Ltd was founded by Mr. Aelian Gunawardene in 1993 with the primary objective of providing total solutions in timber coatings to the Sri Lankan furniture industry. Wood coatings marketed by JAT Holdings are essentially derived out of 3 types of lacquer bases: NC-nitro cellular, PU-polyurethane, and WB-water based – from which customers may select lacquers specifically designed for either ‘Interior’ or ‘Exterior’ use.

JAT currently owns and operates six showrooms in the urban and suburban areas of Sri Lanka and has a network of 11 channel partners with a reach of 3,000 retail outlets island-wide. Its production and warehouse facility in Kahathuduwa totals 61,000 square feet and is ISO 9001: 2000 certified.

 

·         Location.

 

                  The Subject Company head office is located at #.351, Pannipitiya Road, Thalawathugoda,  

                  Approx. 05 kilo meters from Colombo  southern city limits

 

·         Operational Details.

 

General

                  The subject company primary line of business is Import and Supplier of Wood Coatings and chemicals

 

 

Products

                 Timber coatings, Decorative domestic & industrial Emulsion elastomeric and Enamel paints, plasters, anticorrosive paints, floor paints, metal fillers, furniture hardware fittings & accessories

 

                   Brands

                  “SAYERLACK, HERMAN MILLER, AMSTRONG INCHEM, WAGNER”

 

 Import Country

                  Italy, Malaysia, German, Europe and Asia Countries

 

No of Employees

                  Approximately 250

 

 

·         Trade references

 

Board of Investment

Export Development Board

Industrial Development Board

State Timber Corporation

 

 

·         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.

 

 

ANALYSIS - Appraisal of Subject Company

 

 

a) Business Scale         

Medium

b) Business Trend

Growing

c) Management Capability

Above Average

d) Commercial Morality

Above Average

e) Reputation

Above Average

f) Market Situation

Very Competitive

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.20

UK Pound

1

Rs. 97.00

Euro

1

Rs. 69.33

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.