MIRA INFORM REPORT

Report No. :	324605
Report Date :	04.05.2015

IDENTIFICATION DETAILS

Name :	UPALI NEWSPAPERS (PVT) LTD
Registered Office :	223, Bloemendhal Road, Colombo-13
Country :	Sri Lanka
Date of Incorporation :	20.10.1978
Com. Reg. No.:	PV 8654
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is Manufacturer and importer of News Papers, Magazine, Journalist, Diaries
No. of Employee :	600

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	:	UPALI NEWSPAPERS (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director	:	W. Nimal Weerasiri Wimalajeewa
d.	Primary Line of Business	:	Manufacturer and importer of News Papers, Magazine, Journalist, Diaries
e.	Head office & Place of Business	:	# 223, Bloemendhal Road, Colombo-13, Sri Lanka. Tel. No: (00 94 11) 249 7500/ 243 6591 Fax No: (00 94 11) 244 7351 Email: radasanga@yl.upali.lk
f.	No. of Employees	:	Approximately 600

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No	:	PVS 5330
	Date of Registration		20^th October 1978
b.	Re-registration No	:	PV 8654
	Date of Re-registration		29^th October 2008
c.	Registered Office	:	# 223, Bloemendhal Road,Colombo-13.
d.	Board of Directors As at 12th December 2014	:	W. Nimal Weerasiri Wimalajeewa	Managing Director
			Lakmani Ratwatte Welgama	Director
			Sudhammika Keminda Attygalle	Director
			D. Anthony Lakshman Perera	Director
			Lahiru Gunasekera	Director
e.	Issued Share Capital	:	Rs. 45,000,000.00
	Number of Share	:	4,500,000.00
f.	Nominal Value of Share	:	Not stated vide companies Act #7 of 2007

Registration and Shareholder Details

g.	Share Holders As at 12th December 2014	:	Share Holders	No. of Shares
			Ramalingam Murugiah	01
			Upali Enterprises Ltd	400,000
			Upali Investment Holdings Ltd	4,099,999
h.	Auditors	:	Ernst & Young (# 201, De Saram Place, Colombo 10)
i.	Company Secretaries	:	Rohan Sushil Fernando (# 09, Visaka Road, Colombo 04) (00 94 11) 249 7500
k.	Bankers	:	Bank of Ceylon Corporate Branch, Colombo Credit Facility : L/C : Rs. 40.000 Million T/L : Rs. 25.000 Million O/D : Rs. 25.000 Million

Directors Details

01)

Name	W.N. Weerasiri Wimalajeewa
ID Number	452711443 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	27th September 1945
Age	70 Years
Address	#199/6, Rajagiriya Road, Rajagiriya

02)

Name	W. Lakmani Ratwatte
ID Number	537691670 V
Nationality	Sri Lankan
Gender	Female
Date Of Birth	25^th September 1953
Age	62 Years
Address	#10, Shady Grove Avenue, Colombo 08

03)

Name	A. Sudhammika Keminda
ID Number	641600997 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	08^th June 1964
Age	51 Years
Address	#109, 5^th Lane, Colombo 03

04)

Name	D.A. Lakshman Perera
ID Number	521832770 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	01st July 1952
Age	63 Years
Address	#30/A, Maradana Road, Hendala, Wattala

05)

Name	Lahiru Gunasekera
ID Number	600410695 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	10^th February 1960
Age	55 Years
Address	#54/3, Vihara Mawatha, Maharagama

FINANCIAL DETAILS

Most recent available Financial Information

The Company Has Declined To Provide Information On Its Finances

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

SALES TURNOVER (APPROXIMATELY)

Rs. In Million (Sri Lankan Rupees)

Year Amount

2012-2013 Rs. 875.000 Million

2013-2014 Rs. 900.000 Million

2014-2015 (Expected) Rs. 1000.000 Million

CURRENT INVESTIGATION

Company Logo

History

The Subject Company UPALI NEWSPAPERS (PVT) LTD is a Private Limited liability Company incorporated on 20^th October 1978 under registration number PVS 5330 and then the company was re-registered on 29^th October 2008 under registration number PV 8654.

Location

The Subject Company is Located at Client #.223, Bloemendhal Road, and Colombo-13

Operational Details

General

The subject company’s primary line of business is Manufacturer and importer of News Papers, Magazine, Journalist, Diaries

Products

News Papers, Magzine,Journalist, diaries

Import

Product : Raw Material

Country : Korea, Japan, India, Malaysia, Sweden

Payment Terms

Purchasing : Cash and Credit (30, 60, and 90 Days)

Sales : Cash and Credit (30, 60, and 90 Days)

Type of Customers : End Users and OEM’s

Employees

Approx. 600

An visual of an ad posted on rainbow pages

Trade reference

The subject company did not provide any trade reference referrals

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

Rating:
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

INFORMATION PARTED DENIED BY

Name :	Mr. Radasanga
Designation :	Account Manager
Contact No.:	009411-2497500

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.85
UK Pound	1	Rs.98.12
Euro	1	Rs.71.28

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	KAR
Report Prepared by :	ASH

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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