MIRA INFORM REPORT

Report No. :	338740
Report Date :	09.09.2015

IDENTIFICATION DETAILS

Name :	JAT HOLDINGS (PVT) LTD
Registered Office :	#351, Pannipitiya Road, Thalawathugoda
Country :	Sri Lanka
Date of Incorporation :	01.07.1993
Com. Reg. No.:	PV 8743
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Import and Supplier of Wood Coatings & Chemicals.
No of Employees :	Approximately 365

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 – 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	:	JAT HOLDINGS (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director	:	Aelian Winston Gunawardene
d.	Primary Line of Business	:	Trader, Import and Supplier of Wood Coatings & Chemicals.
e.	Head Office & Place of Business	:	#351, Pannipitiya Road, Thalawathugoda, Sri Lanka. Tel. No: (00 94 11) 440 7700 Fax No: (00 94 11) 277 3793 -4 E Mail: info@jatholdings.com / siva@jatholdings.com Website: http://www.jatholding.com
f.	Location	:	Owned
g.	Locality	:	Commercial
	Show Room		#.1, Narahenpita Road, Nawala, Sri Lanka. Tel. / Fax. No: (00 94 11) 440 0108
h.	No. of Employees	:	Approximately 365

COMPANY DETAILS - Registration and Shareholder Details

a.	Registration No	:	N (PVS) 11277
	Date of Registration	:	01^stJuly 1993
b.	Re-registration No		PV 8743
	Date of Re-registration		30^th October 2008
c.	Registered Office	:	# 351, Pannipitiya Road, Thalawathugoda
d.	Board of Directors As At 25^th September 2014	:	A. Winston Gunawardene	Managing Director
			A. Lakmal Gayan Perera	Director
			Indika Kushan Palinda Chandrasekera	Director
			Sivakumar Selliah	Director
			Jehan Prasanna Amaratunga	Director
			Somasundaram Sivasubramaniam	Director
	Total share Capital	:	Rs.628,770,000.00
	No. of Shares	:	443,716,000
f.	Nominal Value of Share	:	Not applicable vide Companies Act #7 of 2007
g.	Major Share Holders As At 25^th September 2015	:	Major Share Holders (17 Share Holders)	No Of Shares Held
			A. Winston Gunawardene	246,992,000
			V. Niranjalie Gunawardena (Ms)	120,000,000
			J Chem Coatings (Pvt) Ltd	40,068,000
			Sivakumar Selliah	1,320,000
			Arunthathi Selliah	2,120,000
			Abirampillai Kailasapillai	2,120,000
			Sivamalar Subramaniam	2,120,000
			Kailasapillai Aravinthan	1,320,000
h.	Auditors	:	KPMG Ford Rhodes Thornton and co. (#32A, Sir Mohammed Macan Marker Mawatha, Colombo 03) EVY & Co. Colombo
i.	Company Secretaries	:	R N H Holdings (Pvt) Ltd (# 107, Dewala Road, Nugegoda)
j.	Bankers	:	Sampath Bank HSBC Bank, Fort, Colombo
k.	Importer of	:	Chemicals
l.	Country	:	Italy, Malaysia, European Countries, Asian Countries
m.	Purchasing Terms	:	Cash, Credit (30 / 60 / 90 Days)
n.	Sales Term	:	Cash, Credit (30 / 60 / 90 Days)
o.	Type of Customers	:	End Users, OEMs

Director’s Details

01)

Name	A. Winston Gunawardene
ID Number	663652605 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	30^th December 1966
Age	48 Years
Address	#501, Ruwan Lane, Off Udumulla Road, Battaramulla.

02)

Name	A. Lakmal Gayan Perera
ID Number	691900690 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	08^th July 1969
Age	45 Years
Address	#10/112, Nawetiya Road, Bekkegama, Panadura.

03)

Name	C. Indika Kushan Palinda
ID Number	720551730 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	24^th February 1972
Age	43 Years
Address	#219, Pepiliyana, Boralesgamuwa.

04)

Name	Sivakumar Selliah
ID Number	593441415 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	09^th December 1959
Age	55 Years
Address	#11415, Rosmead Place, Colombo 07.

05)

Name	Jehan Prasanna Amaratunga
ID Number	592880369 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	14^th October 1959
Age	55 Years
Address	#05, Rajawatta Terrace, Colombo 05.

06)

Name	Somasundaram Sivasubramaniam
ID Number	750111629 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	11^th January 1975
Age	40 Years
Address	#125/10, 16^th Lane, College Street, Colombo 13.

FINANCIAL DETAILS - Most recent available Financial Information

Subject company declined to provide financials without the identity of the end user of the enquiry

It should be noted that the particular industry/trade segment the company is involved has very good growth potential and as such it can be expected for the company to have a good Income.

(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)

(SRILANKAN RUPEES) (Rs. In Billion)

Particulars	31.03.2015	31.03.2014	31.03.2013
Sales Turnover (Approximately)	3.500	3.000	1.900

The above information has been parted by Mr. Sivakumar Selliah

CURRENT INVESTIGATION

Company Logo

· History.

The Subject Company JAT HOLDINGS (PVT) LTD is a Private Limited Liability Company incorporated on 01^st July 1993 under registration number N (PVS) 11277, and the company was re-registered on 30^th October 2008 under registration number PV 8743.

JAT Holdings (Pvt) Ltd was founded by Mr. Aelian Gunawardene in 1993 with the primary objective of providing total solutions in timber coatings to the Sri Lankan furniture industry. Wood coatings marketed by JAT Holdings are essentially derived out of 3 types of lacquer bases: NC-nitro cellular, PU-polyurethane, and WB-water based – from which customers may select lacquers specifically designed for either ‘Interior’ or ‘Exterior’ use.

JAT currently owns and operates six showrooms in the urban and suburban areas of Sri Lanka and has a network of 11 channel partners with a reach of 3,000 retail outlets island-wide. Its production and warehouse facility in Kahathuduwa totals 61,000 square feet and is ISO 9001: 2000 certified.

· Location.

The Subject Company head office is located at #.351, Pannipitiya Road, Thalawathugoda,

Approx. 05 kilo meters from Colombo southern city limits

· Operational Details.

General

The subject company primary line of business is Import and Supplier of Wood Coatings and chemicals

Products

Timber coatings, Decorative domestic & industrial Emulsion elastomeric and Enamel paints, plasters, anticorrosive paints, floor paints, metal fillers, furniture hardware fittings & accessories

Brands

“SAYERLACK, HERMAN MILLER, AMSTRONG INCHEM, WAGNER”

Import Country

Italy, Malaysia, German, Europe and Asia Countries

No of Employees

Approximately 365

· Trade references

Board of Investment

Export Development Board

Industrial Development Board

State Timber Corporation

· 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 PARTED BY

Name :	Mr. Sivakumar Selliah
Designation :	Director (Finance)
Contact No.:	0094773444603
Date :	09.09.2015

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.61
UK Pound	1	Rs.102.30
Euro	1	Rs.74.61

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	SUB
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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