MIRA INFORM REPORT

 

 

Report No. :

301521

Report Date :

17.01.2015

 

 

IDENTIFICATION DETAILS

 

Name :

LANKA MINERAL SANDS LIMITED

 

 

Registered Office :

# 341/21, Sarana Mawatha, Rajagiriya

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

17.03.1992

 

 

Com. Reg. No.:

N (PBS/CGB) 115

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Mining, Processing & Exporting of Heavy Mineral Beach Sands (Ilmenite, Rutile & Zircon)

 

 

No. of Employee :

Approximately 200

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

:

LANKA MINERAL SANDS LIMITED

b.

Legal Form  & Status

:

 Public Limited Liability Company (In Operation)

c.

Chairman/ Managing Director

:

Dishan Wickramarathna Goonasekera

d.

Primary Line of Business

:

Mining, Processing & Exporting of Heavy Mineral Beach Sands (Ilmenite, Rutile & Zircon)

e.

Head office

&

Place of Business

 

:

 

 # 341/21,Sarana Mawatha

Off Old Kotte Road,

Rajagiriya, 
Sri Lanka

 

Tel. No: (00 94 11) 288 3951-2 / 288 3954

Fax No: (00 94 11) 288 2668 

 

E-Mail: ilmenite@slt.lk

 

f.

No. of Employees

:

Approximately 200

        

 

COMPANY DETAILS  - Registration and Shareholder Details

 

a.

 

Registration No

:

N (PBS/CGB) 115

Date of Registration

:

17th March 1992

b.

Re-registration No

:

PB 587

Date of Re-registration

:

16th September 2008

c.

Registered Office

:

# 341/21, Sarana Mawatha, Rajagiriya

d.

Board of Directors

As At

09th July 2013

:

Dishan Wickramarathna Goonasekera

Chairman/ Managing Director

H.G. Sirisena

Director

Rajitha Pandithasekara

Director

H.G. Sumanasinghe

Director

Nanasena Adihetty

Director

D. Brian Evans Coonghe

Director

D.M.D. Oscar Kithsiri Dissanayake

Director

e.

Issued Share Capital

:

Rs. 800,000,000.00  

f.

Number of Share

:

80,000,000

g.

Nominal Value of Share

:

Not applicable/declared vide Companies Act #7 of 2007

 

 

Registration and Shareholder Details

 

h.

 

Share Holders

As At

09th July 2013

:

Share Holder

No. of

Shares

Secretary to the Treasury 

80,000,000

i.

Auditors

:

Cecil Arseculeratne & Co

(# 3, Dr. Lester James Peiris Mawatha, Colombo 05)

j.

Company Secretaries

:

P W Corporate Secretarial (Pvt) Ltd

(# 3/17, Kinsey Road, Colombo 008)

k.

Bankers

:

Bank of Ceylon, People’s Bank, State Bank of India, Hatton National Bank

 

 

FINANCIAL DETAILS - Most recent available Financial Information

We have contacted the accounts division of the company to obtain financial information and   they declined to give us any financial information as they insist to know the details 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

                                               

 

·         History.

 

                  The Subject Company LANKA MINERAL SANDS LIMITED is a Public    Limited   liability Company incorporated on 17th March 1992 under the registration number N (PBS/CGB) 115 and then company has been re-registered on 16th September 2008 under the registration number PB 587.

 

Lanka Mineral Sands Limited which is a company fully owned by the Government of Sri Lanka is the successor to Ceylon Mineral Sands Corporation Which was established in 1957 under the Industrial Corporation act. The functions of the company are to do mining, processing and exporting of heavy mineral beach sands. In 1992 this corporation was converted as Lanka Mineral Sands Limited as a fully government owned company.

 

This company is controlled by the Ministry of State Resources and Enterprise Development.

 

·         Location.

 

The Subject Company is located at client # 341/21, Sarana Mawatha, Off Old Kotte Road, Rajagiriya, Sri Lanka

 

·         Operational Details.

 

General

                  The subject company’s primary line of business Mining, Processing & Exporting of Heavy Mineral Beach Sands (Ilmenite, Rutile & Zircon)

 

Principle Activities

The objectives in the accordance with the memorandum and articles of association of Lanka Mineral Sands Limited provide the Board Directors.

  • To do mining, separation, refining and processing heavy mineral sands.
  • To do manufacture and sale of any product of commercial or industrial value from heavy beach sands and any product derived there prompt.
  • To manufacture and sale of any by product which may be produced as a result of the refining and processing heavy beach mineral sands.

 

Products

Ilmenitte, Rutile, Zircon 

 

Export Countries

Japan, Pakistan, India, Egypt and Europe

 

 

No of Employees

                  Approximately 200

 

 

·         Trade Association

 

                  Ceylon Chamber of Commerce

 

 

·         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 computerized 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

 

 

Rating:

a) Business Scale        

NA

b) Business Trend

NA

c) Management Capability

NA

d) Commercial Morality

NA

e) Reputation

NA

f) Market Situation

NA

                                   

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.93.92

Euro

1

Rs.72.00

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

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.