MIRA INFORM REPORT

Report No. :	509723
Report Date :	23.05.2018

IDENTIFICATION DETAILS

Name :	SIERRA CABLES PLC
Registered Office :	# 112, Havelock Road, Colombo 05
Country :	Sri Lanka
Financials (as on) :	31.12.2017
Date of Incorporation :	23.02.2000
Com. Reg. No.:	PQ 166
Legal Form :	Private, Limited Liability Company
Line of Business :	Subject is involved in six major business sectors comprising of the Construction & Engineering Sector, The Consumer Electronics Sector, The Cables Sector, The Leisure Sector, The Property Development Sector & Fertilizer Sector.
No. of Employees :	400

RATING & COMMENTS

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

MIRA’s Rating :

A

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	A2	A2

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	SIERRA CABLES PLC
b.	Legal Form & Status	Private, Limited Liability Company (In Operation)
c.	Chairman	Mr Perera Wahalathanthinge Anil Priyantha
d.	Primary Line of Business	The group is involved in six major business sectors comprising of the Construction & Engineering Sector, The Consumer Electronics Sector, The Cables Sector, The Leisure Sector, The Property Development Sector & Fertilizer Sector
		# 112, Havelock Road, Colombo 05,
		Sri Lanka.
e.	Principal Place of Business	Phone : (00 94 11) 4 412 000 Fax : (00 94 11) 2 770291 E-Mail: scl@sierra.lk / info@sierracables.com Web Site: http://www.sierracables.com/
f.	Employees	400 Approximately

Company Details

a.	Registration No	N(PBS)868
	Date of Registration	23^rd February 2000
b.	Re-registration No	PQ 166
	Date of Re-registration	25^th June 2008
c.	Registered Office	# 112, Havelock Road, Colombo 05, Sri Lanka.
d.	Director Board / Ownership As At 13^th October 2017	Perera Wahalathanthinge Anil Priyantha	Director
		P E A Don Tissa Benjamin	Director
		P Daya Shamendra	Director
		R James Henry Paul	Director
		I G Sujivle Madhuni	Director
		Rupasinghe Brandi Wattage Nimal	Director
		J Ananda Kithsiri Wijenayake	Director
		G Migara Nissanka	Director
		L Shalini Nimendranie	Director
		Lokuge Don Nimal Nayana (Alternate Director to D S Panditha)	Director
		Rugalbandara Francis Anthony William (Alternate Director to W A P Perera)	Director
e.	Stated Share Capital	LKR 537,512,430.00
f.	No. of Shares	537,512,430
g.	Preferential Shares	NA
h.	Nominal Value of Share	NA
i.	Auditors	M/S K P M G Ford Rhodes Thornton & Company # 32 A, Sir Mohamed Macan Maker Mawatha, Colombo 03, Sri Lanka.

j.	Company Secretaries	P R Secretarial Services (Pvt) Ltd # 59, Gregory's Road, Colombo 07, Sri Lanka.
k.	Main Bank/s	Commercial Bank of Ceylon PLC. Bank of Ceylon, Sampath Bank PLC, State Bank of India, Hatton National Bank PLC, DFCC Bank PLC, Peoples Bank
l.	Present Value / Share	LKR 2.20
m.	All Time High All Time Low	LKR 6.40 LKR 1.00
n.	Public Quoted Date	2005.11.22

FINANCIAL DETAILS - Most recent available Financial Information

NA

Company Logo

4) CURRENT INVESTIGATION

• History.

The subject company was initially formed on 23^rd February 2000 under N(PBS) 868 under the Companies Act of Sri Lanka. The subject company was subsequently Re-registered on 25^th June 2008 under PQ 166 under the Companies Act No 7, of 2007 as per the mandatory regulations of Sri Lanka.

• Operational Details. General

The subject company which has its roots in the construction field, the company is a public listed entity but at present due to the entire stock exchange activities being slow the share prices are quite low. The company has production in international regions and also exports the production of cables as well as local supply.

Products & Services

House & Building Wires

Flexible Cords & Cables

Armoured & Unarmoured Power Cables

XLPE Insulated Aerial Bundles Cables (ABC)

Control Cables

Enamelled Winding Wires

Employees

400 Approximately

Export Countries

Europe, USA, Middle East, Africa, Oceania

Import Countries

India, China, Europe

Associate / Subsidiary Companies

Sierra Industries (Private) Limited Sierra Power (Private) Limited Sierra East Africa Ltd

Associate Companies

T & G Lanka (Private) Limited

Tea Leaf Resorts(Private ) Limited

Factory / Warehouse and Sales Outlets

39/1A,Galwarusa Road Korathota

Kaduwela, Sri Lanka

Fiji Islands Kenya

Personal Details of Key Persons

Director 1

ITEM	DETAIL
Name	Perera Wahalathanthinge Anil Priyantha
ID Number	591542699V
Nationality	Sri Lankan
Gender	Male
Date of Birth	02.06.1959
Age	59
Address	# 19 A, Gower Street, Colombo 05, Sri Lanka.
Director 2
ITEM	DETAIL
Name	P E A Don Tissa Benjamin
ID Number	542803100V
Nationality	Sri Lankan
Gender	Male
Date of Birth	06/10/1954
Age	64
Address	# 07, Church Road, Nayakakanda, Hendala, Wattala, Sri Lanka.
Director 3
ITEM	DETAIL
Name	P Daya Shamendra
ID Number	521962844V
Nationality	Sri Lankan
Gender	Male
Date of Birth	14.07.1952
Age	66
Address	NA

ITEM	DETAIL
Name	James Henry Paul Ratnayake
ID Number	493002856V
Nationality	Sri Lankan
Gender	Male
Date of Birth	26.10.1949
Age	68
Address	# 59, St Gregory's Road, Colombo 07, Sri Lanka.
Director 5
ITEM	DETAIL
Name	I G Sujivle Madhuni
ID Number	718231930V
Nationality	Sri Lankan
Gender	Female
Date of Birth	18.11.1971
Age	47
Address	NA
Director 6
ITEM	DETAIL
Name	Rupasinghe Brandi Wattage Nimal
ID Number	530131505V
Nationality	Sri Lankan
Gender	Male
Date of Birth	13.01.1953
Age	66
Address	NA

ITEM	DETAIL
Name	J Ananda Kithsiri Wijenayake
ID Number	603551370V
Nationality	Sri Lankan
Gender	Male
Date of Birth	20.12.1960
Age	58
Address	NA
Director 8
ITEM	DETAIL
Name	G Migara Nissanka
ID Number	532321530V
Nationality	Sri Lankan
Gender	Male
Date of Birth	19.08.1953
Age	65
Address	NA
Director 9
ITEM	DETAIL
Name	L Shalini Nimendranie
ID Number	NA
Nationality	NA
Gender	Female
Date of Birth	NA
Age	NA
Address	NA

ITEM	DETAIL
Name	Lokuge Don Nimal Nayana
ID Number	542483059V
Nationality	Sri Lankan
Gender	Male
Date of Birth	04.09.1954
Age	64
Address	NA
Director 11
ITEM	DETAIL
Name	Rugalbandara Francis Anthony William
ID Number	422841512V
Nationality	Sri Lankan
Gender	Male
Date of Birth	10.10.1942
Age	76
Address	NA

INFORMATION DENIED

Name :	Not Divulged
Contact No.:	(009411) 4412000
Designation :	Accounts Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.01
UK Pound	1	INR 91.24
Euro	1	INR 80.07
LKR	1	INR 0.43

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

INFORMATION DETAILS

Information Gathered by :	SHA
Analysis Done by :	NIY
Report Prepared by :	DNS

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.