MIRA INFORM REPORT
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Report No. : |
335782 |
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Report Date : |
12.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
LANKA ALUMINIUM INDUSTRIES PLC |
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Registered Office : |
# 1st Floor, Lakshman's Building, 321, Galle Road, Colombo 3 |
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Country : |
Sri Lanka |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
11.03.1983 |
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Com. Reg. No.: |
PQ 187 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Subject is manufacture and sale of Aluminium Extrusions. |
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No. of Employee : |
170 ( Group 200) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Sri Lanka |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
SRI LANKA - ECONOMIC OVERVIEW
Sri Lanka continues to experience strong economic growth following the end of the government's 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, but low tax revenues remain a 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 |
: |
LANKA ALUMINIUM
INDUSTRIES PLC |
|
b. |
Legal Form
& Status |
: |
Public Limited Liability Company (In Operation)
Listed in Colombo Stock Exchange |
|
c. |
Chairman |
: |
S.
T. Nagendra. |
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d. |
Primary Line of Business |
: |
Manufacture and
sale of Aluminium Extrusions |
|
e. |
Head
Office |
: |
# 1st
Floor, Lakshman's Building, Tel:
(00 94 11) 256 5951-3 / 550 3300 Fax:
(00 94 11) 257 6944/ 550 3381 Email:
sales@lanka-aluminium.com |
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Factory |
: |
# 20, Temple Road , Ekala, Ja-Ela Tel No: (00 94 11) 223 6941 – 4 / 535 4700-1 |
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Sales & Service Centre |
: |
547 1/A, Sri Sangaraja Mawatha, Colombo 10 Tel/Fax No: (00 94 11) 238 8216 |
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f. |
No.
of Employees |
: |
Approximately 170 ( Group 200) |
COMPANY
DETAILS
Registration
and Shareholder Details
|
a. |
Old Registration
No |
: |
N
(PVS/ PBS) 321 |
|
|
Date of
Registration |
: |
11th
March 1983 |
||
|
b |
New
Re-registration No |
: |
PQ
187 |
|
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Date of
Re-registration |
: |
20th
August 2008 |
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c. |
Registered Office |
: |
01st
Floor, Lakshman’s Building, # 321, Galle Road, Colombo 03 |
|
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d. |
Board of Directors As at 01st May 2015 |
: |
S.
T. Nagendra |
Chairman
|
|
J.
D. Peiris |
Managing
Director |
|||
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J.
M. Swaminathan |
Director |
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R.
Swaminathan |
Director |
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P.
Chandaria |
Director |
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H.D.S.
Amarasuriya |
Director |
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C.L.K.P.
Jayasuriya |
Director |
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Dinesh
Stephen Weerakkody |
Director |
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|
Sanjeev
Kumar |
Director |
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e. |
Issued
Share Capital |
: |
Rs.
137,028,230.00 |
|
|
Number of Shares |
: |
13,702,823 |
||
|
f. |
Nominal Value of Share |
: |
Not
applicable/declared vide Companies Act #7 of 2007 |
|
|
g. |
Major Share Holders As at 31st March 2014 (Total Number of Share Holders 1,372) |
: |
Major Share Holders |
No. of
Shares |
|
Clovis
Company limited, Bermuda |
6,863,429 |
|||
|
K.D.D.
Perera |
3,991,589 |
|||
|
Dr.
H.S.D. Soysa |
138,150 |
|||
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Dr.A.G.Visvalingam/Mrs.
V.I.Visvalingam |
448,139 |
|||
|
Associated Electricals Corporation Limited |
147,382 |
|||
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Hatton National Bank/Mr. R.S.A. Silva & Mrs. G.J. Wiramalie |
86,000 |
|||
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Merchant Bank of Sri Lanka |
79,960 |
|||
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P.N. Bhatt |
78,613 |
|||
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h. |
Auditors |
: |
KPMG Ford,
Rhodes, Thornton & Company # 32A, Sir Mohamed
Macan Markar Mawatha, Colombo 03 |
|
|
I. |
Company Secretaries |
: |
S
S P Corporate Services (Private) Limited #
101, Inner Flower Road, Colombo 03 |
|
|
j. |
Bankers |
: |
National
Development Bank DFCC
Vardhana Bank Hatton
National Bank Standard
Chartered Bank Nations
Trust Bank |
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FINANCIAL
DETAILS
Most recent available Financial Information
CURRENT
INVESTIGATION
·
History.
The Subject Company LANKA ALUMINIUM INDUSTRIES PLC is a Public Limited
liability Company incorporated on
11th March 1983 under registration number PQ187. The word “LIMITED”
has been changed to “PLC” in terms of Companies Act #7 of 2007.
Lanka Aluminium Industries plc is a
Board of Investment (BOI) approved company listed in the Colombo Stock
Exchange, specializing in the manufacture of anodized and powder coated
aluminium extrusions. The product range includes sections for architectural,
general hardware, transport and other specialized applications.
·
Location.
The subject
company is located at client 1st Floor,
Lakshman’s Building, No.321, Galle Road, Colombo – 03, Sri Lanka.
The address of the subject company given by the
client is incorrect.
·
Operational
Details.
General
The subject company primary
line of business is Manufacture and
fabrication of articles and products of every description from aluminium or
derivatives of aluminium or derivers of aluminium, including aluminium plates,
sheets, circles, foil, slug aluminium cast products and role formed products.
Rods, wire rods and ex torsions of aluminium.
There are 4 subsidiary companies of the Subject Company, such as:
Comark Lanka (Pvt)
Limited - Trading in Aluminium extrusions and accessories
Castalloys (Pvt)
Limited - Manufacture and sale of Aluminium ingots and billets.
Classic Teas
(Pvt) Limited - Exporting Tea.
Comark Engineers
(Pvt) Limited - Undertaking contracts for Aluminium fabrication
Products
Aluminium plates,
sheets, circles, foil, slug aluminium cast products and role formed products.
Rods, wire rods and extrusions of aluminium etc
No of Employees
Approximately 170 (Group 200)
Trade
references
The subject company did not provide any trade reference referrals
Credit
Recommendations
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
declined
Management non
co-operative (Tel. No. : 009411-2565951)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.17 |
|
|
1 |
Rs.99.84 |
|
Euro |
1 |
Rs.70.36 |
INFORMATION DETAILS
|
Information
Gathered by : |
DPA |
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.