MIRA INFORM REPORT

Report No. :	323843
Report Date :	03.06.2015

IDENTIFICATION DETAILS

Name :	C.W. MACKIE PLC
Registered Office :	# 36, D.R Wijewardena Mawatha, Colombo-10
Country :	Sri Lanka
Date of Incorporation :	01.02.1992
Com. Reg. No.:	PQ 47
Legal Form :	Public Limited Liability Company quoted at the Colombo Stock Exchange (In operation)
Line of Business :	Export of crepes, sole crepe & industrial crepe rubber, desiccated coconut & spices, import & resale of light industrial products
No. of Employee :	Approximately 700

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	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	:	C.W. MACKIE PLC
b.	Legal Form & Status	:	Public Limited Liability Company quoted at the Colombo Stock Exchange (In operation)
c.	Chairman / CEO	:	W. Tissa Ellawala
d.	Primary Line of Business	:	Export of crepes, sole crepe & industrial crepe rubber, desiccated coconut & spices, import & resale of light industrial products
e.	Head office & Place Of Business	:	# 36, D. R. Wijewardena Mawatha Colombo-10. Sri Lanka. Tel No: (00 94 11) 242 3554 - 62 Fax No: (00 94 11) 244 0228 Email: info@cwmackie.com
f.	No. of Employees	:	Approximately 700

COMPANY DETAILS

- Registration and Shareholder Details

a.	Registration No	:	J 496
	Date of Registration	:	01^st February 1922
b.	Registration No	:	PQ 47
	Date of Registration	:	30^th October 2007
c.	Registered Office	:	# 36, D.R Wijewardena Mawatha, Colombo-10
d.	Board Of Directors As At 11th July 2014	:	W. Tissa Ellawala	CEO/Chairman
			C. Renuka Ranasinghe	Director
			A.M. de Silva Jayaratne	Director
			R. Crisantha Peries	Director
			S. D. Rajendram Arudpragasam	Director
			Anushman Rajaratnam	Director
			Dr. T. Senthivel	Director
			H.D. Senarath Amarasuriya	Director
			Alagarajah Rajaratnam	Director

COMPANY DETAILS

- Registration and Shareholder Details – (Cont...)

e.	Auditors	:		KPMG Ford, Rhodes, Thornton & Co. #32 A, Sir Mohamed Macan, Markar Mawatha, Colombo 03
f.	Company Secretaries	:		Ms C R Ranasinghe # 18/48, Muhandiram E.D. Dabare Mawatha, Colombo 05
g.	Bankers			Hatton National Bank Plc, Commercial Bank of Ceylon Plc, NDB Bank Plc, Standard Chartered Bank Plc
h.	Total No. of Issued Shares		:	35,988,556
i.	Issued Share Capital		:	Rs. 507,047,000.00
j.	Nominal Value of Share		:	Not applicable vide Companies Act #7 of 2007.
k.	Major Share Holders As At 31st March 2014 (Total Number of Share Holders are 1,942)	:		Major Share Holders	No. of Shares
				Lankem Ceylon PLC	12,267,526
				Seylan Bank PLC/Dr. T. Senthilverl	10,765,575
				Kotagala Plantations PLC	7,157,857
				Pan Asia Banking Corporation PLC/Lankem Ceylon PLC	1,779,285
				Amana Bank Limited	730,570
				P. Anandarajah	155,100
				M. A. Lukmanjee	155,000
				Navara Capital Limited	147,100

Director Details

01)

Name	W. Tissa Ellawala
Sex	Male
Nationality	Sri Lankan
National ID No.	370493227V
Date of Birth	18^th February 1937
Age	78 Years
Resident Address	#15/6, 25^th Lane, Off Green Path, Colombo 07

02)

Name	Camani Renuka Ranasinghe
Sex	Female
Nationality	Sri Lankan
National ID No.	587321459 V
Date of Birth	19^th August 1958
Age	57 Years
Resident Address	#18/48, Muhandiram E.D. Dabare Mawatha, Colombo 05

03)

Name	A. M. D Silva Jayaratne
Sex	Male
Nationality	Srilankan
National ID No.	401211233V
Date of Birth	30^th April 1940
Age	75 Yaers
Resident Address	#80/5, Layards Road, Colombo 05

04)

Name	Ranjit Crisantha Peries
Sex	Male
Nationality	Srilankan
National ID No.	402630086V
Date of Birth	19^th September 1940
Age	75 Years
Resident Address	#30/35 N, Willow Terrace, De Silva Road, Kalu Bowila

05)

Name	S. D. Rajendram Arudpragasam
Sex	Male
Nationality	Srilankan
National ID No.	512292410 V
Date of Birth	16th August 1951
Age	64 Years
Resident Address	#25, Alfred House Avenue, Colombo 03

06)

Name	Anushman Rajaratnam
Sex	Male
Nationality	Srilankan
National ID No.	772600720 V
Date of Birth	16^th September 1972
Age	38 Years
Resident Address	#40/1, Bagatale Road, Colombo 03

07)

Name	Dr. T. Senthilverl
Sex	Male
Nationality	Srilankan
National ID No.	452881411 V
Date of Birth	14^th October 1945
Age	70 Years
Resident Address	#28 D, Visaka Road, Colombo 04

08)

Name	H. D Senarath Amarasuriya
Sex	Male
Nationality	Srilankan
National ID No.	720571935 V
Date of Birth	26^th February 1972
Age	43 Years
Resident Address	Sri Gnanendra Mawatha, Nawala, Rajagiriya

09)

Name	Alagarajah Rajaratnam
Sex	Male
Nationality	Srilankan
National ID No.	411951081 V
Date of Birth	13^th July 1941
Age	74 Years
Resident Address	#40/1, Bagatale Road, Colombo 03

FINANCIAL DETAILS

- Most recent available Financial Information

CURRENT INVESTIGATION

Company Logo

• History.

The Subject Company C. W. MACKIE PLC is a Public Limited Liability Company incorporated on 01^st February 1922 under the registration number J 46, and then company has been re-registered on 30^th October 2007 under the registration number PQ 47.

The CW Mackie was founded in 1900 by the late Mr C.W.Mackie a Scotsman, who carried on the enterprise as Merchants and Commissions Agents under the name of ‘CW Mackie & Company’. In 1922, the business was incorporated as a private limited company. In 1946, a consortium of Ceylonese and Indian Businessman bought over the shares of the company and converted it to a public company.

The year 1971 marked a significant change when Ceylon Trading Company Limited, the Sri Lanka based subsidiary of Aarhus United A/S of Denmark, bought a part of the Indian shareholding and took over the management of the company. In late 1994, shares equivalent to 25% of the total shares in the company were issued to the public so as to broad-base the ownership of and give the Company greater access to the capital market of Sri Lanka to raise capital funds for the future diversifications and expansions.

The subject company earlier known as C. W. Mackie & Company Plc, and then changed to C. W. MACKIE PLC on 08^th August 2008.

C. W. MACKIE PLC‘s Subsidiaries Companies are,

Ceymac Rubber Company Limited

Ceytra (pvt) Ltd

Scan Tours & Travels (Pvt) Ltd

Kelani Valley Canneries Limited

• Location.

The Subject Company is located at the client # 36, D.R Wijewardena Mawatha, Colombo-10, Sri Lanka, a prominent business area.

• Operations Details.

General

The subject company’s primary line of business is exporter of crepe, Plantation sole crepe & industrial crepe rubber, desiccated coconut & spices, import & resale of light industrial products. The major contribution from the group’s domestic trading activities is largely in the manufacturing and distribution of the “Sunquick” range of products.

The subject company products are has earned certified by ISO 9001:2008, ISO 22000:2005, HACCP, GMP

This is a reputed business conglomerate in Sri Lanka.

C W.MACKIE PLC consists of the following major businesses:

* Export Trading - exporter in all grades of natural rubber, including thin and thick pale latex crepe, thick brown crepe, ribbed smoked sheet, white and coloured sole crepe, technically specified rubber (TSR grades) and also speciality grades of natural rubber such as granulated crepe, ZOX crepe and are also in a position to manufacture any speciality types of natural rubber grades to cater to customers specific requirements

Trading Division - importer and supplier of high quality fine granulated refined white sugar.

Industrial Products Division - import and sale of welding equipment and consumables and light engineering products, refrigeration and air-conditioning components and marine paints and protective coatings and manages several agencies for world renowned brands such as Hempel marine paints, Eutectic, Chosun, Danfoss and Migatronics, one of the major supporting factors to the varied industries of Sri Lanka

Scan Products Division - manufacturing, importing, marketing and distribution of branded FMCG products specializing in the food and beverage

Brands

Sun quick Fruit Squash, Ovaltine, Star brand Essences & Colourings, Scan branded Bottled Water, Scan Jumbo Peanuts, Ocean Fresh Tuna and Scan Jack Mackerel, Hempel, Chosun, Mosa

Import Country

Thailand, EU, Australia, Brazil, India, China

Export Country

Japan, USA, China, India, UK, Europe, Pakistan & Middle Eastern Countries, Taiwan, Hong Kong, South America and South Africa

No of Employees

Approximately 700

• Trade references

The subject company is having a large clientele in Sri Lanka and abroad. This is a well

Known company in the business circle.

• 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 denied

MANAGEMENT NON CO-OPERATIVE

Contact No.: 0009411-2423554

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.83
UK Pound	1	Rs.97.10
Euro	1	Rs.69.74

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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