MIRA INFORM REPORT

 

 

Report No. :

328425

Report Date :

30.06.2015

 

IDENTIFICATION DETAILS

 

Name :

VARNA LIMITED

 

 

Registered Office :

# 15, Old Airport Road, Ratmalana

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

03.07.1961

 

 

Com. Reg. No.:

PB 1428

 

 

Legal Form :

Public Limited Liability Company (Not listed at the Stock Exchange)

 

 

Line of Business :

Manufacturers of Flexible Packaging

 

 

No. of Employees :

Approximately 90

 

 

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

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

:

 

VARNA LIMITED

 

b.

Legal Form  & Status

 

:

 

Public Limited Liability Company (Not listed at the Stock Exchange) (In Operation)

c.

Managing Director

 :

Mr. C. L Wickremasinghe

d.

Primary Line of Business

:

Manufacturers of Flexible Packaging

e.

Head Office & Place of   

           Business

:

 

# 15, Old Airport Road,

Ratmalana.

Sri Lanka.

 

Tel: (00 94 11) 263 2971 / 263 7314 / 263 7859 / 263 5904

Fax: (00 94 11) 263 4627

 

Email: info@varnaltd.com

 

f.

No. of Employees

:

Approximately 90

 

 

COMPANY DETAILS 

 

- Registration and Shareholder Details

 

a.

Registration No

:

PBS 420

Date of Registration

:

03rd July, 1961

b.

Re-Registration No.

:

PB 1428

Date of Re-Registration

:

21st July 2010

c.

Registered Office

:

# 15 Old airport Road,Ratmalana

d.

 

Board of Directors

As At

14th August 2014

 

:

Channa Lalin  Wickremesinghe

Managing Director

Ayandevi Kshanika Weeratunga

Director

K.G. Chamindra

Director

Sanath Mahesh De Ruberu Samaraweera Gunasekere

Director

Asoka Hemachandra

Director

e.

Authorised Share Capital

:

Rs. 113,413,830.00

Rs. 1,441,560,000.00

f.

No. of Shares

:

11,341,383

144,156,000

g.

Nominal Value of Share

:

Not applicable vide Companies Act #7 of 2007.

h.

 

Major Share Holders

As at

14th August 2014

 

      (Total shareholders:53)

 

:

Major Share Holders

No. of    Shares

 

Hemas Holdings Plc

121,220,383

Hemas Pharmaceuticals (Pvt) Ltd

9,975,617

Naj Nagendran

6,480,000

Phonix Ventures Ltd

6,480,000

DACM Investments (Pvt) Ltd

5,000,000

Tropical Exports Ltd

2,000,000

Sithara Ltd

350,000

Daya Group (Pvt) Ltd

500,000

Olympus Contruction (Pvt) Ltd

300,000

i.

Auditors

:

Wijeyeratne And Company

(# 157 A/1, Kynsey Road, Colombo 08)

j.

Company Secretaries

:

Professional Assignments & Secretarial Services (Pvt) Ltd (#45A, Park Lane, Rajagiriya)

k.

Bankers

:

Bank of Ceylon, HSBC, Seylan Bank, Peoples Bank

 

 

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.

 

 

Current Investigation

 

·         History.

The Subject Company VARNA LTD is a Unlisted Public   Limited   Liability Company incorporated 03rd July 1961 under registration No PBS 420 and the Company was re-registered on 21st July 2010 under registration No PV 1428, in terms of Companies Act.#7 of 2007.

 

·         Location.

The Subject Company is located at the client # 15 Old Airport Road, Ratmalana

 

·         Operational Details.

 

General

                 The subject company primary line of business is Manufacturers of Flexible Packaging for Milk Foods, Frozen Foods, Pharmaceuticals, Confectionery, Biscuits, Chemicals, Cereals, Spices, Tea and Coffee

 

Products

Packaging Material

 

No of Employees

      Approximately 90

 

 

Directors’ Details

 

01)

Name

Channa Lalin Wickremesinghe

ID Number

601702991 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

18th June 1960

Age

55 Years

Address

# 115, 5th Lane, Colombo 03

 

 

 

02)

Name

Ayandevi Kshanika Weeratunga

ID Number

528422276 V

Nationality

Sri Lankan

Gender

Female

Date of Birth

07th December 1952

Age

62 Years

Address

# 50/12, Siripa road, Colombo 05

 

 

03)

Name

K.G. Chamindra

ID Number

890140157 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th January 1989

Age

26 Years

Address

# 19/16A, Hospital Terrace, Off Sunandarama Road, Kalubowila

 

04)

Name

Sanath Mahesh De Ruberu Samaraweera Gunasekere

ID Number

600080458 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

08th January 1960

Age

55 Years

Address

# 12A, Kesbewa Road, Boralesgamuwa

 

 

05)

Name

Asoka Hemachandra

ID Number

551231836 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

02nd May 1955

Age

60 Years

Address

# 24/4, De Silva Road, Kalubowila

 

·         Trade references

      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.

 

 

INFORMATION Declined

 

MANAGEMENT NON CO-OPERATIVE.

 

Contact No.: (00 94 11) 263 2971

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.92

UK Pound

1

Rs.100.40

Euro

1

Rs.70.41

 

INFORMATION DETAILS

 

Information Gathered by :

KMN

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

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.