MIRA INFORM REPORT

 

 

Report No. :

323799

Report Date :

06.06.2015

           

IDENTIFICATION DETAILS

 

Name :

CARGILLS QUALITY FOODS LTD

 

 

Registered Office :

# 40, York Street, Colombo 01

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

22.01.1993

 

 

Com. Reg. No.:

PV 11479 PB

 

 

Legal Form :

Public Limited Liability Company (In Operation)

 

 

Line of Business :

Manufacture and distributors of Processed Meat Products

 

 

No. of Employees :

Company- Approx. 250 (Group 7,400)

 

 

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

:

CARGILLS QUALITY FOODS LTD

b.

Legal Form  & Status

 

:

 

Public Limited Liability Company (In Operation)

c.

Chairman

 :

Valentine Ranjit Kumar Page

d.

Primary Line of Business

:

Manufacture and distributors of Processed Meat Products

e.

Head Office

:

# 40, York Street,

Colombo 01.

Sri Lanka

 

Tel. No: (00 94 11) 242 7777, 242 7500

Fax No: (00 94 11) 233 8704

               

Email  : ccl@cargillsceylon.com

 

f.

Factory

:

# 35/1, Malwatta Road, Mattakkuliya, Colombo 15,

Sri Lanka.

g.

No. of Employees

:

Company- Approx. 250 (Group 7,400)

           

 

COMPANY DETAILS - Registration and Shareholder Details

 

a.

Registration No

:

PVS 2300

 

Date of Registration

 

 

22nd January 1993

b.

Re-registration No

:

PV 11479 PB

 

Date of Re-registration

 

02nd February 2009

c.

Registered Office

:

# 40, York Street, Colombo 01, Sri Lanka

d.

Board of Directors

As At

31st December 2014

:

Valentine Ranjitkumar Page

Chairman

Mohammed Imtiaz Abdul Wahid

Director

Sidath Vivendra Kodikara

Director

Prabaharan Subramanium Mathavan

Director

Joseph Clement Mahendran Victoria

Director

Sarath Lakshman Wijeratne  Dissnayake

Director

h.

Issued Share Capital

:

Rs.          782,125,353.00       

i.

No of Shares

:

4,860,291

j.

Nominal Value of Share

:

Not applicable vide Companies Act #7 of 2007

k.

Share Holders

As At

31st December 2014

:

 Share Holders

No Of Shares

Anthony Asokumar Page

1

Valentine Ranjit Kumar Page

1

Joseph Chandrakumar Page

1

Cargils (Ceylon) PLC

4,860,288

e.

Auditors

:

KPMG

(#32a, Sir. Mohamed Macan Markar Mawatha, Colombo 03)

f.

Company Secretaries

:

Cargills (Ceylon) Limited

(#40, York Street, Colombo 01)

g.

Bankers

:

Bank of Ceylon

 

 

FINANCIAL DETAILS - Most recent available Financial Information

 

Statement of Comprehensive Income For the year ended 31st March

                                                                                                                                                                       

              Income Statement

     As At 31st March 

             2014

           Rs’000                 

As At 31st March

            2013

           Rs’000 

A

Revenue

:

1,323,682

1,211,800

B

 Cost of Sales

:

(1,059,331)

(904,407)

C

 Gross Profit

:

264,351

307,393

D

Other Income

:

454,236

472,089

E

Administration Expenses

:

(116,072)

(84,852)

F

Distribution Expenses

:

(135,500)

(85,801)

G

Other Expenses

:

(141,302)

(128,305)

H

Results From Operating activities

:

325,713

480,524

I

Net Finance Cost

:

(23,828)

(11,039)

H

Net Profit / (Loss) before Tax

:

301,885

469,485

I

Taxation

:

9,835

(29,030)

J

Net Profit / (Loss) After Tax:

:

311,720

440,455

 

 

Statement of Financial Position For the year ended 31st March

 

 

AS At 31st March

2014

  Rs’000                          

       AS At 31st March

2013

 Rs’000                  

a)

Non-current Assets

:

3,379,565

3,217,200

b)

Current Assets

:

1,475,659

1,183,908

c)

Current Liability

:

3,519,230

2,919,416

d)

Non-current liability

:

20,573

26,191

e)

Total Liabilities

:

3,539,803

2,945,607

f)

Total Assets

:

4,855,224

4,401,108

g)

 

Net Worth

 

:

1,315,421

1,455,501

 

 

Current investigation

 

·         History.    

 

                                                                          Group Logo

 

                                                               http://www.cargillsceylon.com/App_Themes/Site/images/prideofnation.gif

                                                       

                  The Subject Company CARGILLS QUALITY FOODS LTD is a Public Limited   liability Company incorporated on 22nd January 1993 under registration number PVS 2300 and then the company was re-registered on 02nd February 2009 under registration number PV 11479PB.

 

                 The subject company initially registered as CARGILLS QUALITY FOODS (PVT) LTD it changed on 10th March 2011

 

The Subject Company, CARGILLS QUALITY FOODS LIMITED is a subsidiary Company of CARGILLS (CEYLON) PLC which was incorporated in 1946 and is a quoted public Blue Chip Company with a very high recognition as one of the best managed companies in the country, and it has a broad-based shareholding since 1946. CARGILLS (CEYLON) LIMITED is also a subsidiary Company of CEYLON THEATRES LIMITED which was incorporated in 1928 and is a quoted public Blue Chip Company with a very high recognition as one of the best managed companies in the country, and it has a broad-based shareholding since 1928.

               Subject is an associate company of Cargills (Ceylon) PLC, which is having about 17 companies covering Food, beverages, Dairy farms, Biscuits, Fresh Milk and many other products without lets country wide. “Cargills” is a house hold name for its quality.

 

                  In 1996 Cargills acquired the franchise license for KFC and innovated on its secret                   

                  recipe to deliver products that suited the local market.

                

·         Location.

 

The Subject Company is located at client # 40, York Street, Colombo 01

And also registered office of the subject company.

 

 

·         Operational Details.

 

General

                  The business of the Subject Company is the manufacture of Processed Meat Products such as bacon, sausages, salamis and such like.  

 

Products

Meat bolls, Sausages and ready made meet products.

 

Employees

                   Company- Approx.250 (Group 7,400)

 

Director Details

 

01)

Name

V. Ranjithkumar Page

ID Number

580450016 X

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th February 1958

Age

57 Years

Address

# 21/1, Staples Street, Colombo 01

 

 

02)

Name

M. Imtiaz Abdul Wahid

ID Number

601680386 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

16th June 1960

Age

55 Years

Address

# 13A, Arthurs Place, Colombo 04

 

03)

Name

Sidath Vivendra Kodikara

Id Number

591782940 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

16th June 1960

Age

55 Years

Address

# 23A, Balahenmulla Lane, Pamankada, Colombo 6

 

 

04)

Name

P. Subramaniam Mathavan

Id Number

683321397 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

27th November 

Age

47 Years

Address

# 35/4E, Kaviratne Place, Off Havelock Road, Pamankada

 

05)

Name

J. Clement Mahendran Victoria

Id Number

601680386 V

Nationality

Sri Lanka

Gender

Male

Date Of Birth

16th June 1960

Age

55 Years

Address

# 53/4, Nawala Road, Nugegoda

 

06)

Name

Sarath Lakshman Wijeratne Dissanayake

Id Number

5535508900 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

20th December 1955

Age

60 Years

Address

# 51, Madinnagoda Road, Rajagiriya

 

              

·         Trade references

 

                  The subject company is well known in Sri Lanka

 

 

·         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.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.97.97

Euro

1

Rs.71.82

 

INFORMATION DETAILS

 

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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