MIRA INFORM REPORT

 

 

Report No. :

340697

Report Date :

19.09.2015

 

IDENTIFICATION DETAILS

 

Name :

DISTILLERIES COMPANY OF SRI LANKA LTD

 

 

Registered Office :

# 110, Norris Canal Road, Colombo – 10

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

17.11.1989

 

 

Com. Reg. No.:

PQ 112

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Distillation, Manufacture, Importer, Marketing and Distributors of Liquor Products.

 

 

No. of Employees :

1200

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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 government's 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, but low tax revenues remain a 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

Basic information at a glance

     

a.

Name of Subject of Inquiry

:

DISTILLERIES COMPANY OF SRI LANKA LTD

b.

Legal Form  & Status

:

Public Limited Liability Company (In Operation)

c.

Chairman

:

Mr. D. H. S. Jayawardena

d.

Primary Line of Business

:

Distillation, Manufacture, Importer, Marketing and Distributors of Liquor Products.

e.

Head office

&

Place of Business

 

:

 # 110, Norris Canal Road,

Colombo – 10.

Tel. No: (00 94 11) 269 5295-7

Fax No: (00 94 11) 269 6360

Email: info.dcsl@melsta.com

f.

No. of Employees

:

Approximately 1,200

                       

 

COMPANY DETAILS 

 

Registration and Shareholder Details

 

a.

Registration No

:

N (PBS/ CGB) 13

b.

Date of Registration

:

17th November 1989

c.

Re-Registration No

:

PQ 112

d.

Date of Re-Registration

:

14th February 2008

c.

Registered Office

:

# 110, Norris Canal Road, Colombo – 10.

d.

Board of Directors

As At

26th January 2015

:

Mr. D. H. S. Jayawardena

Chairman / Managing Director

Janz Cedric Royle

Director

Deva Aditya Niranjan De Silva

Director

Amitha Lal Goonaratne (Alternate Director To Aditya Niranjan De Silva)

Director

Kolitha Jagath Kahanda

Director

S. Vijayanthi Mala Jayatillake (Alternate Director To The Kolitha Jagath Kahanda)

Director

Adrian Naomal Balasuriya

Director

D. Hasitha Stassen Jayawardena

Director

 

Shares Holder Details

 

 

 

e.

Authorised Share Capital

:

Rs.    300,000,000.00

f.

No. Shares

:

300,000,000

g.

Nominal Value of Share

:

Not declared/disclosed vide Companies Act #7 of 2007

h.

 

Major Share Holders

As At

26th January 2015

:

Major Share Holders

No. of

Shares

Milford Export (Ceylon) Ltd

124,470,500

Lanka Milk Foods (Cwe) Ltd

37,961,500

Mr. Muzaffa Ali Yaseen

33,238,000

Mrs. Lorraine Estelle Marlene Yaseen

14,350,000

Melstacorp Limited

8,650,732

HSBC International Nominees Ltd-MSCO-Route One Fund 1 L.P

5,280,944

HSBC Intl Nom Ltd-Msco-Route One Offshore Master Offshore Master Fund, L.P

4,767,395

Commercial Bank of Ceylon PLC/L.E.M. Yaseen

4,750,000

i.

Auditors

:

KPMG (#32A, Sir. Mohamed Macan Marker, Mawatha, Colombo03)

j.

Company Secretaries

:

Vijayanthimala Jayatillake Senaratne

(#60/1, Malwatta Road, Dehiwala)

k.

Bankers

:

Hatton National Bank Ltd, People’s Bank, Bank of Ceylon, Sampath Bank Ltd, Standard Chartered Bank, and HSBC.

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

1

2

 

 

CURRENT INVESTIGATION                      

 

History.

 

The Subject Company DISTILLERIES COMPANY OF SRI LANKA LTD  is a Public    Limited   liability Company incorporated in 17th November 1989.

 

The subject company’s product is under the name DCSL. The DCSL, one of the most dynamic and successful companies in Sri Lanka, ranked ‘No. 01’ amongst the ‘Business Today TOP 10’ in the year 2005/ 2006.

 

The subject company is a Holding Company of the Subsidiary Companies given below

 

·         Milford Holdings (Pvt) Ltd

·         Aitken Spence & Company Ltd

·         Sri Lanka Insurance Company Ltd

·         Periceyl (Pvt) Ltd

·         Balangoda Plantations Ltd

·         Madulsima Plantations Ltd

·         Texpro Industries Ltd

·         Timpex (Pvt) Ltd

·         Beruwala Distillery (Pvt) Ltd

·         Lanka Bell Ltd

·         National Asset Management Ltd

·         Collision Repair Center (Pvt) Ltd

·         The Lanka Hospitals Corporation Ltd

 

 

Location.

The Subject Company is located at the client #110, Norris Canal Road, Colombo - 10

 

 

Operational Details.

 

General

                  The subject company primary line of business is Distillation, Manufacture, Importer, Marketing and Distributors of Liquor Products.

 

Products

Sri Lankan Branded Arracks

 

Country

Local Market only

 

Employees

Approximately 1,200

 

 

Directors Detail’s

 

01)

Name

Mr. D. H. S. Jayawardena

ID Number

422303944 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

17th August 1942

Age

73 Years

Address

#82, Main Street, Ja-Ela.

 

02)

Name

Janz Cedric Royle

ID Number

522983403 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

24th October 1952

Age

63 Years

Address

#34A, Lumbini Avenue, Pirivena Road, Ratmalana.

 

03)

Name

Deva Aditya Niranjan De Silva

ID Number

D0009571

Nationality

Sri Lankan

 

04)

Name

Amitha Lal Goonaratne (Alternate Director To Aditya Niranjan De Silva)

ID Number

521182830 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

27th April 1952

Age

63 Years

Address

#174/4, Model Farm Road, Colombo 08

 

05)

Name

Kolitha Jagath Kahanda

ID Number

590380296 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

07th February 1959

Age

56 Years

Address

#311/17, River Place Garden, Waratanna, Halouwa, Kandy

 

06)

Name

S. Vijayanthi Mala Jayatillake (Alternate Director To The Kolitha Jagath Kahanda)

ID Number

547931467 V

Nationality

Sri Lankan

Gender

Female

Date of Birth

19th October 1954

Age

61 Years

Address

#60/1, Malwatte Road, Dehiwala

 

07)

Name

Adrian Naomal Balasuriya

ID Number

641580966 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

06th June 1964

Age

51 Years

Address

#22/5, Cotta Road, Colombo 08

08)

Name

D. Hasitha Stassen Jayawardena

ID Number

910480014 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

17th February 1991

Age

24 Years

Address

#82, Main Street, Ja-Ela

 

Financial Data

Received from the Annual Report.

 

General Comments

All operational and financial information of the subject company was provided in their annual report of 2006/ 2007 is highlighted in this report

 

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

 

Management Non-cooperative (0094-11-2695295-7)

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.93

UK Pound

1

Rs.102.75

Euro

1

Rs.75.13

 

INFORMATION DETAILS

 

Information Gathered by :

KAM

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TRU

 

               

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.