MIRA INFORM REPORT

 

 

Report No. :

330938

Report Date :

15.07.2015

 

IDENTIFICATION DETAILS

 

Name :

LAUGFS SALT AND CHEMICALS LTD

 

 

Registered Office :

# 14, R A De Mel Mawatha, Colombo 04

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

05.09.2006

 

 

Com. Reg. No.:

PB 489

 

 

Legal Form :

Public Limited Liability Company  (In Operation)

 

 

Line of Business :

Manufacture, Import & Distributors of Salt & Salt Based Chemicals

 

 

No. of Employees :

Approximately 10

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Sri Lanka

 

 

 

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

:

LAUGFS SALT AND CHEMICALS LTD

b.

Legal Form  & Status

:

Public Limited Liability Company  (In Operation)

c.

Managing Director

:

 W.K. Hemachandra Wegapitiya

d.

Primary Line of Business

:

Manufacture, Import & Distributors of Salt & Salt Based Chemicals

e.

Head office

&

Place of Business

 

:

 

 # 14, R A De Mel Mawatha,

Colombo 04,

Sri Lanka.      

 

Tel. No: (00 94 11) 556 6222             

Fax No: (00 94 11) 557 7824

 

f.

No. of Employees

:

Approximately 10

 

 

COMPANY DETAILS  - Registration and Shareholder Details

 

a.

Registration No

:

N (PBS) 1350

 

Date of Registration

:

05th September 2006

b.

Registration No

 

PB 489

Date of Registration

 

06th August 2008

c.

Registered Office

:

# 14, R A De Mel Mawatha, Colombo 04

d.

Board of Directors

As At

           14th October 2014

:

W.K. Hemachandra Wegapitiya

Managing Director

U.K Thilak Nandasiri De Silva

Director

e.

Issued Share Capital

:

Rs.  49,781,540.00

Number of shares

:

4,978,154

f.

Nominal Value of Share

:

Not applicable/declared vide Companies Act #7 of 2007

g.

 

Share Holders

As At

14th October 2014

:

Share Holders

No. of

Shares

W.K. Hemachandra Wegapitiya

01

U.K Thilak Nandasiri De Silva

01

Laugfs Holdings Limited

4,978,148

Laugfs Supermarkets (Pvt) Ltd

01

Laugfs Petroleum (Pvt) Ltd

01

Laugfs Engineering (Pvt) Ltd

01

Laugfs Gas Plc

01

h.

Auditors

:

Ernst & Young

# 201, De Saram Place, Colombo 10

i.

Company Secretaries

:

Keerthi Pathiraja

# 171, Wanawasala, Kelaniya

j.

Bankers

:

Commercial Bank


FINANCIAL DETAILS - Most recent available Financial Information

                                                                                   

THE COMPANY HAS DECLINED TO PROVIDE INFORMATION ON ITS FINANCES

                                                                                   

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 investment                                             

 

·         History.

 

                  The Subject Company LAUGFS SALT AND CHEMICALS LTD is a Public    Limited   liability Company incorporated on 05th September 2006 under registration number N (PBS) 1350 and then the company was re-registered on 06th August 2008 under registration number PB 489.

 

                 The subject company is a one of the member company of LAUGFS Group

 

·         Location.

 

The Subject Company is located at the client # 14, R A De Mel Mawatha, Colombo 04.

 

LAUGFS Sault and Chemicals Limited is currently involved in the production of edible salt in its facility located at Hambantota

 

·         Operational Details.

 

General

                  The subject company primary line of business is Manufacture, Import & Distributors of Salt & Salt Based Chemicals.

 

Products

Salt & Salt Based Chemicals

 

Country

 

 

No of Employees

Approximatly 10

 

 

Directors’ Details

 

01)

Name

W.K. Hemachandra Wegapitiya

ID Number

620300020 X

Nationality

Sri Lanka

Gender

Male

Date of Birth

30th January 1962

Age

53 Years

Address

# 70, Unit 7-9, 2nd Floor, Lucky Plaza, New Wing, St. Anthony’s Mawatha, Colombo 03

 

02)

Name

U.K Thilak Nandasiri De Silva

ID Number

54274336 V

Nationality

Sri Lanka

Gender

Male

Date of Birth

30th September 1954

Age

60 Years

Address

# 70, Unit 7-9, 2nd Floor, Lucky Plaza, New Wing, St. Anthony’s Mawatha, Colombo 03

 

 

·         Trade references

 

                  The subject company did not provide any trade reference

 

·         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 (Tel No.: 0009411-5566-222)

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.50

UK Pound

1

Rs.98.20

Euro

1

Rs.69.73

 

INFORMATION DETAILS

 

Information Gather by :

NYA

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

VNT

 

               

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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