3decades

MIRA INFORM REPORT

Report No. :	515001
Report Date :	25.06.2018

IDENTIFICATION DETAILS

Name :	EASTERN MERCHANTS PLC

Registered Office :	# 240, Torrington Avenue, Colombo 07

Country :	Sri Lanka

Financials (as on) :	31.03.2017

Date of Incorporation :	21.12.1945

Com. Reg. No.:	PVS/PBS 303

Legal Form :	A public quoted company with limited liability incorporated in Sri Lanka and listed with the Colombo Stock Exchange (In Operation)

Line of Business :	Export of traditional and non-traditional commodities

No. of Employees :	200 (Approximately)

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

(31.12.2017)

Current Rating

(01.04.2018)

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

INFORMATION DENIED BY

Name :	Mr. Jai Kuria
Designation :	Accounts Manager
Contact No.:	0009411-2435503

SRI LANKA - ECONOMIC OVERVIEW

Sri Lanka is attempting to sustain economic growth while maintaining macroeconomic stability under the IMF program it began in 2016. The government's high debt payments and bloated civil service, which have contributed to historically high budget deficits, remain a concern. Government debt is about 79% of GDP and remains among the highest of the emerging markets. In the coming years, Sri Lanka will need to balance its elevated debt repayment schedule with its need to maintain adequate foreign exchange reserves.

In May 2016, Sri Lanka regained its preferential trade status under the European Union’s Generalized System of Preferences Plus (GSP+), enabling many of its firms to export products, including its top export garments, tax free to the EU. In 2017, Parliament passed a new Inland Revenue Act in an effort to increase tax collection and broaden the tax base in response to recommendations made under its IMF program. In November 2017, the Financial Action Task Force on money laundering and terrorist financing listed Sri Lanka as non-compliant, but reported subsequently that Sri Lanka had made good progress in implementing an action plan to address deficiencies.

Tourism has experienced strong growth in the years since the resolution of the government's 26-year conflict with the Liberation Tigers of Tamil Eelam. In 2017, the government promulgated plans to transform the country into a knowledge-based, export-oriented Indian Ocean hub by 2025.

Source : CIA

GENERAL

a.	Name of Subject of Inquiry	:	EASTERN MERCHANTS PLC
b.	Legal Form & Status	:	A public quoted company with limited liability incorporated in Sri Lanka and listed with the Colombo Stock Exchange (In Operation)
c.	Chairman	:	J. B. L. De Silva
c.	Managing Director		Channa S.L. de Silva
d.	Primary Line of Business	:	Export of traditional and non-traditional commodities
e.	Head Office	:	# 240, Torrington Avenue, Colombo 07, Sri Lanka. Tel: (00 94 11) 232 5736,243 5503, 232 8408 Fax: (00 94 11) 244 8474, 230 3204 Email: trading@easrenmerchants.net
f.	Warehouse Complex	:	# 101, Gonawala Road, Sapugaskanda, Maswila, Ampegama.
f.	No. of Employees	:	Approximately 200

Basic information at a glance

COMPANY DETAILS

Registration and Shareholder Details

Registration No

PVS/PBS 303

Date of Registration

21^st December 1945

Re-registration No

PQ 153

Date of Re-registration

09^th June 2008

Registered Address

# 240, Torrington Avenue, Colombo 07, Sri Lanka.

Board of Directors

As at

31^st October 2017

J. B. L. De Silva

Chairman

H. J. de Silva

Deputy Chairman

C.S.L.De Silva

Managing Director

N. K. L. Tilakaratne

Director

S. A. Chandraratne

Director

H. P. J. de Silva

Director

C. I. Thilakaratne (Ms)

Director

R. L. Nanayakkara (Ms)

Director

S. Jayakody

Director

I.P. De Zoysa

Director

Stated Capital

Rs. 16,778,000.00

Number of Shares

117,446,000

Nominal Value of Share

Not Stated vide Companies Act #7 of 2007

Major Share Holders

As at

31^st March 2017

(Total Number of Share Holders 1,326)

Major Share Holders	No. of Shares
J. B. L. de Silva	32,382,280
H. J. de Silva	16,121,140
C. I. Tilakaratna	15,134,219
C. S. L. de Silva	14,581,140
N. S. Karunaratne	12,629,120
Eamel Exports Ltd	5,668,714
S. de A. Rajapakse	2,940,000

Auditors

Messrs. D.H.P. Munaweera and Co.

# 5/6, Police Park Terrace, Off Police Park Avenue, Col. 05

Company Secretaries

S. Jayakody

# 21/5, Nagahawatta Road, Dalugama, Kelaniya

Bankers

HSBC

Seylan Bank

Hatton National Bank

Nation Trust Bank

National Development Bank

DFCC Bank PLC

FINANCIAL DETAILS

Most recent available Financial Information

Description: Capture

Description: Cmp inc

CURRENT INVESTIGATION

Company Logo

Description: New Picture

· History.

The Subject Company EASTERN MERCHANTS PLC is a Public Limited Liability Company incorporated on 21^st December 1945 under registration number PVS/PBS 303 and then company has been re-registered on 09^th June 2008 under the registration number PQ 153.

· Location.

The Subject Company is located at the client given address # 240, Torrington Avenue, Colombo 07.

Subject having a USA registered associate company

USA Office Address:

Eastern Merchants USA LLC,

P.O. Box 1484, Allen, TX 75013, United States of America

Tel: (+1469) 5730768

Nalin Karunaratne, President

Email: nkarunaratne@easternmerchantsusa.com

Mobile: (+1469) 6675338

Horacio Trujillo, Vice President – Sales and Marketing

Email: htrujillo@easternmerchantsusa.com

Mobile: (+1972) 2659726

· Operational Details

General

The subject company primary line of business is Export of traditional and non-traditional commodities

Subsidiary Companies

· Asia Brush (Pvt) Ltd

· Eamel Exports Limited

· Asian Woodware Company (Pvt) Ltd

· Spice Lane (Pvt) Ltd

Overseas Associate company

Eastern Merchants USA LLC,

Products

Tea, Natural Rubber, Desiccated Coconut, Coconut Fibre, Coir Products, Cinnamon and Spices

Export Countries

European Countries, USA

No of Employees

Approximately 200

· Trade references

Ceylon Chamber of Commerce

Export Development Board

SUMMARY

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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.76
UK Pound	1	INR 89.95
Euro	1	INR 78.85
LKR	1	INR 0.43

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

INFORMATION DETAILS

Information Gathered by :	POO

Analysis Done by :	VAR

Report Prepared by :	SUJ

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)

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.