3decades

MIRA INFORM REPORT

Report No. :	491709
Report Date :	22.02.2018

IDENTIFICATION DETAILS

Name :	DAINTEE LIMITED

Registered Office :	# 72 C, Kandawala Road, Ratmalana

Country :	Sri Lanka

Date of Incorporation :	19.01.1984

Com. Reg. No.:	PB 439

Legal Form :	Limited Liability Company

Line of Business :	Manufacturers and Distributors of Food and Beverage Items

No. of Employees :	Approximately 225

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow but Correct

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Sri Lanka

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

SRI LANKA - ECONOMIC OVERVIEW

Sri Lanka is attempting to sustain economic growth while maintaining macroeconomic stability under its IMF program that it began in 2016. The government's high debt payments and bloated civil service cadre, which have contributed to historically high budget deficits and low tax revenues, remain a concern. Government debt is about 75% of GDP and remains among the highest of the emerging markets. Sri Lanka will need to balance its elevated debt repayment schedule with its requirement to maintain adequate foreign exchange reserve levels in the coming years.

In May 2016, Sri Lanka regained its preferential trade preferences under the European Union’s Generalized System of Preferences Plus (GSP+), enabling many of its firms to export products, including it top export garments, tax free to the EU. Also in 2016, the government reformed elements of the country’s tax regime to increase some tax rates and broaden the tax net in response to recommendations made under its IMF program.

Tourism has experienced strong growth during recent years following the resolution 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.

Source : CIA

Basic Information

a.	Name of Subject of Inquiry	DAINTEE LIMITED
b.	Legal Form & Status	Limited Liability Company (In Operation)
c.	Chairman CEO	Dr Ayal De Silva Jayatilaka Mr S Perera
d.	Primary Line of Business	Manufacturers and Distributors of Food and Beverage Items
		Daintee - Kandawala Factory & Head Office 72C, Kandawala Road, Ratmalana, Sri Lanka. Tel: (+94) 011 2635384, 011 2635406, 011 2611291-3 Fax: (+94) 011 2637141
e.	Principal Place of Business	Daintee - Anura Mawatha Factory 31A Anura Mawatha, Ratmalana, Sri Lanka. Tel : (+94) 011 2635420, 011 2611211 Fax : (+94) 011 2635453 Phone : (00 94 11) 2635384, 011 2635406, 011 2611291-3 Fax : (00 94 11) E-Mail: info@daintee.com / dainteelimited@gmail.com Web Site: http://www.daintee.com
f.	Employees	Approximately 225

Company Details

a.	Registration No	N(PVS/PBS) 831
	Date of Registration	19^th January 1984
b.	Re-registration No	PB 439
	Date of Re-registration	21^st July 2008
c.	Registered Office	# 72 C, Kandawala Road, Ratmalana, Sri Lanka.
	Director Board / Ownership As At 14^th October 2017	Koku Hennadige Wilfred	Chairman
d.		Gunawarnawaduge Sylvester Paul Wencesiaus	Director
		Henakaarachchilage Karunaratne	Director
		Degiri Nishantha Mendis	Director
e.	Stated Share Capital	LKR 100,000,000.00
f.	No. of Shares	Ordinary 10,000,000
g.	Preferential Shares	NA
h.	Nominal Value of Share	LKR 10.00
i.	Auditors	M/S D A Abeywardena Associates Chartered Accountants # 80/12, Rubberwatta Road, Gangodawila, Nugegoda, Sri Lanka.
j.	Company Secretaries	Aliyar Corporate Solutions (Pvt) Ltd # 242, Thalawathugoda Road, Pitakotte, Sri Lanka.
k.	Main Bank/s	Peoples Bank, Mashreq Bank

Shareholders

	NO.	NAME	NUMBER OF SHARES
1.		Dr Ayal De Silva Jayatilaka	3,374,500
2.		Idammudallige Nilmini Rekha Gunaratna	3,027,452
3.		Kodikara Rashmin Rathidu Gunaratne	657,516
4.		Kodikara Rukshani Gunaratne	657,516
5.		Kodikara Saliya Gunaratne	657,516
6.		Suvina Ayoli Jayatilaka	1,625,500

FINANCIAL DETAILS

Most recent available Financial Information NA

CURRENT INVESTIGATION

Company Logo

· History.

The subject company was initially formed on 19^th January 1984 under N(PVS/PBS) 831 under the Companies Act of Sri Lanka. The subject company was subsequently Re-registered on 21^st July 2008 under PB 439 under the Companies Act No 7, of 2007 as per the mandatory regulations of Sri Lanka.

Caption

Daintee is the market leader in confectionery in Sri Lanka. It was founded over a quarter of a century ago with the aim of producing high quality confectionery for the Sri Lankan market. Not only has it fulfilled that aim, but it now boasts a very large product range consisting

of Toffees, Sweets, Jellies, Chocolates, Gum, Desserts, Biscuits, Sugar Free Confectionery, Snacks, Cereals, Teas, Peanuts, Bottled Drinking Water and Noodles. Daintee is continually expanding its product range and currently there are over 75 different products. The companies have been investing in the latest technology and the machinery used for cooking, chocolate refining, production and packaging is modern and the most reliable in the confectionery field. Metal detectors are used to ensure that products are free from any metal contamination.

The products are marketed in Sri Lanka as well as several other countries under prestigious brand names such as Daintee, Milady, Bensons, Chito, X-tra, Mr Bitz, Longlive and Denmi.The companies have purchased the internationally known prestigious brand names of Milady, Bensons, and Chix, which originally belonged to Barker & Dobson, to be used in Sri Lanka. At the inception, Daintee Limited had a technical agreement with Barker & Dobson.

· Operational Details.

General

Products & Services

Toffees, Sweets, Jellies, Chocolates, Gum, Desserts, Biscuits, Sugar Free Confectionery, Snacks, Cereals, Teas, Peanuts, Bottled Drinking Water and Noodles.

Importers of Cellophane,Twist Wrap PVC & Paper,Cocoa Powder, Dextrose & Glucose,Flavours & Colours,Gelatines, Maltodextrine,Fats,Oil & Maize Grit.

Employees

225 Approximately

Export Countries

Import Countries

Associate / Subsidiary Companies

Daintee Marketing Limited

Factory / Warehouse and Sales Outlets

Owned

Personal Details of Key Persons

Director 1

ITEM	DETAIL
Name	Koku Hennadige Wilfred
ID Number	510140087V
Nationality	Sri Lankan
Gender	Male
Date of Birth	14.01.1951
Age	67
Address	# 47/55, Perera Mawatha, Thalangama South, Battaramulla, Sri Lanka.

Director 2
ITEM	DETAIL
Name	Gunawarnawaduge Sylvester Paul Wencesiaus
ID Number	643314266V
Nationality	Sri Lankan
Gender	Male
Date of Birth	26.11.1964
Age	53
Address	# 24/2, 2^nd Lane, Kadalana, Moratuwa, Sri Lanka.

Director 3
ITEM	DETAIL
Name	Henakaarachchilage Karunaratne
ID Number	611652585V
Nationality	Sri Lankan
Gender	Male
Date of Birth	13.06.1961
Age	56
Address	# 260 D, Alwis Fernando Mawatha, Weragama Road, Wadduwa, Sri Lanka,

Director 4

ITEM	DETAIL
Name	Degiri Nishantha Mendis
ID Number	682740507V
Nationality	Sri Lankan
Gender	Male
Date of Birth	30.09.1968
Age	49
Address	Kiralagahawela, Meetiyagoda, Sri Lanka.

INFORMATION DENIED

Management non-co-operative (09411) 2611291-3/ 2635420 / 2611211/ 2635384 /2635406

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.81
UK Pound	1	INR 90.66
Euro	1	INR 79.94
LKR	1	INR 0.42

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Information Gathered by :	KAM

Analysis Done by :	PRI

Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.