MIRA INFORM REPORT

 

 

Report No. :

322254

Report Date :

21.05.2015

 

IDENTIFICATION DETAILS

 

Name :

KELANI VALLEY PLANTATIONS PLC

 

 

Registered Office :

# 400, Deans Road, Colombo 10

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

18.06.1992

 

 

Com. Reg. No.:

PQ 58

 

 

Legal Form :

Public Limited Liability Company (in operation) listed with Colombo Stock Exchange

 

 

Line of Business :

Production & processing of tea & Rubber.

 

 

No. of Employee :

Approximately 13,000

 

 

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

:

KELANI VALLEY PLANTATIONS PLC

b.

Legal Form  & Status

:

Public Limited Liability Company (in operation) listed with Colombo Stock Exchange

c.

Chairman

 :

A.M. Pandithage

d.

Primary Line of Business

:

Production & processing of tea & Rubber

e.

    Head Office

          

:

 

# 400, Deans Road,

Colombo 10,

Sri Lanka.

 

Tel. No: (00 94 11) 262 7700, 268 6274-5

Fax No: (00 94 11) 269 4216

 

E Mail: postmaster@kvpl.com

 

f.

No. of  Employees

:

Approximately 13,000

                       

 

COMPANY DETAILS

 

- Registration and Shareholder Details

 

a.

Registration No

:

N(PBS/CGB) 127

Date of Registration

:

18th  June 1992

b.

Re-registration No

:

PQ 58

c.

Registered Office

:

# 400, Deans Road, Colombo 10

d.

Board of Directors

As At

31st March 2015

:

A.M. Pandithage

Chairman

W.G.R Rajadurai

Managing Director

F. Mohideen

Director

S. Siriwardana

Director

S.C. Ganegoda

Director

L.T. Samarawickrama

Director

Dr. K.I.M. Ranasoma

Director

C.V. Cabraal

Director

L.N. De. S. Wijeyeratne

Director

 

 

Registration and Shareholder Details

 

e.

Issued Share Capital

:

Rs. 340,000,000.00

Number of Shares

:

34,000,000

f.

Nominal Value of Share

:

Not applicable/declared vide Companies Act #7 of 2007

h.

Major Share Holders

As At

31st December 2013

(Total Number of Share Holders – 14,279)

 

 

                       Major Share Holders

No. of Shares

DPL Plantations (Pvt) Ltd

24,200,000

Waldock Mackenzie Ltd./Mr. L P Hapangama

Mr. L P Hapangama

2,819,213

400

Bank of Ceylon A/c Ceybank Unit Trust

1,992,642

Mabroc Holdings (Pvt) Ltd

512,746

Bank of Ceylon A/c Ceybank Century Growth Fund

459,984

AIA Insurance Lanka PLC - A/C No. 7

AIA Insurance Lanka PLC - A/C No. 6

379,172

30,100

T T T Al-Nakib

344,122

H A A H Algharabally

150,000

i.

Auditors

:

Messrs. Ernst & Young

j.

Company Secretaries

:

Hayleys Group Services (Private) Limited

400, Deans Road, Colombo 10

k.

Bankers

:

Bank of Ceylon

NDB Bank

Sampath Bank

Seylan Bank

Hatton National Bank

DFCC Bank

Citibank

People’s Bank

 

 

FINANCIAL DETAILS

 

- Most recent available Financial Information

 

New Picture (1)

 

 

FINANCIAL DETAILS - Most recent available Financial Information (Cont/d…)

 

New Picture (1)

 

 

 

CURRENT INVESTIGATION

 

New Picture

Company Logo

 

 

  • History.

The Subject Company KELANI VALLEY PLANTATIONS PLC is a Public Limited Liability Company listed with Colombo Stock Exchange incorporated on 18th June 1992 under registration number N(PBS/CGB) 127 and then the company was re-registered under the registration number PQ 58 in terms of Companies Act #7 of 2007.

 

Kelani Valley Plantations PLC (KVPL) is a Subsidiary of Dipped Products PLC (DPL).

 

Kelani Valley Plantations PLC subsidiary companies as follow;

Kalupahana Power Company (Private) Limited

Kelani Valley Instant Tea (Private) Limited

Mabroc Teas (Private) Limited

Hayleys Global Beverages (Private) Limited

 

 

  • Location.

The Subject Company’s located at the client # 400, Deans Road, Colombo 10.

 

 

  • Operations Details.

 

General

The subject company’s primary line of business is a Production & processing of tea & Rubber.

The subject Company comprises of 26 estates covering over 13,000 hectares in total with almost equal Extents of Tea and Rubber, spanning three distinctive agro-climatic regions.

 

 

The subject company has earned certified by HACCP (Sri Lanka), ISO 22000: 2005 (Switzerland) accreditations

 

Products

Tea & Rubber

 

Export Countries

Egypt, Syria, Ukraine, Russia, Middle East

 

No of Employees

Approximately 13,000

 

 

  • Trade references

 

The subject company did not provide any trade reference referrals

 

 

  • 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 by

 

Name :

Mr. Ajith Nissanke

Designation :

DGM Finance

Contact No.:

(009411) 2627700

Date :

20.05.2015

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.86

UK Pound

1

Rs.98.89

Euro

1

Rs.70.73

 

 

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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