XXX XXX (PVT) LTD XXX D-U-N-S XX-XXX-XXXX · strategically located at XXX Road, XXX Town, XXX, XXX, Sri Lanka. Since its inception in XXX, XXX XXX (Pvt) Ltd. has directed its efforts

XXX XXX (PVT) LTD

XXX

D-U-N-S XX-XXX-XXXX

Dun & Bradstreet South Asia Middle East Ltd.

PO Box 72478, National Bank of Fujairah Building,

Level 7, Khalid Bin Walid Road (Bank Street),

Bur Dubai, Dubai,

United Arab Emirates Tel: +971-4-7027300 Fax: +971-4-7027373 www.dnbsame.com

http://www.dnbsame.com/

http://www.dnbsame.com/

D&B Comprehensive Report XXX XXX (PVT) LTD

2 | P a g e

Disclaimer: ========================================================================================= This material is confidential and proprietary to Dun & Bradstreet and Client (hereinafter

referred to as “the Subscriber”) and may not be copied or otherwise reproduced,

repackaged, further transmitted, transferred, disseminated, redistributed or resold, or

stored for subsequent use for any such purpose, in whole or in part, in any form or any

manner or by any means whatsoever, by any person without express authorization of Dun &

Bradstreet South Asia Middle East Limited (hereinafter referred to as „D&B‟) or the

General Counsel of Dun & Bradstreet.

All information contained herein is obtained by D&B from sources believed by it to be

accurate and reliable. Although reasonable care has been taken to ensure that the

information herein is true, such information is provided „as is‟ without any warranty of

any kind and D&B, in particular, makes no representation or warranty, express or implied,

as to the accuracy, timeliness or completeness of any such information. All information

contained herein must be construed solely as statements of opinion and D&B shall not be

liable for any loss incurred by users from any use of this report or its contents.

D&B's information and opinion should not be the only criterion when making business

decisions on subject of report. Data in this report should be considered as an additional

factor together with others in order to reach a decision. In the course of its

work/survey, D&B may have received information from the “Subject Company‟‟ being rated or

graded, besides the fact that the report may also contain data/information available in

the Public Domain or that made available through Secondary Sources.

Date: May 18, 2011


3 | P a g e

Introduction

D&B D-U-N-S : XX-XXX-XXXX COMPANY NAME : XXX XXX (PVT) LTD TRADESTYLE(S) : XXX ADDRESS : XXX Road XXX Town, XXX XXX Sri Lanka TELEPHONE : (92) (XX) (XXXXXXXX) FAX : (92) (XX) (XXXXXXXX) WEB PAGE : www.XXX.com EMAIL : [email protected]

------------------------------------------------------------------------------

REGISTRATION # : XXXXXXX START DATE : XXXX CONTROL DATE : XX/XXX/XXXX HISTORY : Clear EMPLOYEES (Here) : 765 Est EMPLOYEES (Total) : 1040 Est IMPORTS : Yes EXPORTS : Yes SALES / INCOME : LKR 946,848(in Thousands) NET WORTH (Tangible) : LKR 387,860(in Thousands) AUTHORIZED CAPITAL : LKR 65,000,000 ISSUED CAPITAL : LKR 62,543,900 PAID-UP CAPITAL : LKR 62,543,900

------------------------------------------------------------------------------

CHIEF EXECUTIVE : XXX XXX Chief Executive Officer

------------------------------------------------------------------------------ SIC LOB

------------------------------------------------------------------------------


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The D&B Rating

D&B‟s Rating consists of 2 parts, the Financial Strength and the Composite Appraisal / Condition. Financial Strength is an indication of the tangible net Worth (that is, the shareholder‟s funds less any intangible assets). The Composite Appraisal/Condition is linked to the level of risk and is an overall Evaluation of credit worthiness. It takes into account the financial condition and several factors such as trade reference history, legal structure, Management experience and any adverse listings.

Special Investigation Comments:

CURRENT INVESTIGATION ---------------------- On XX/XXX/XXX, XXX XXX, Chief Executive Officer, confirmed all information in this report. Other Comments: ---------------- Investigation comments.

Investigation comments.

Company Profile

XXX XXX (PVT) LTD is a Private Limited Liability Company was started in XXXX and is strategically located at XXX Road, XXX Town, XXX, XXX, Sri Lanka. Since its inception in XXX, XXX XXX (Pvt) Ltd. has directed its efforts in developing better interiors for home and corporate establishment. XXX is the only company in Sri Lanka that provides complete solutions for your home. XXX is a BRAND and a lifestyle which is affordable, aesthetically pleasing, durable and comparable in quality and workmanship to the best in the world.

Market Reputation

Mr. XXX XXX of M/S XXX Enterprises confirmed business existence and satisfactory business relationship with XXX XXX Pvt Ltd for a period exceeding 07-08 years. The payment terms are on credit of 30-45 days. According to him XXX XXX Pvt Ltd has good reputation in the

http://s1.e-srv.net/?s2=01-2-4CNLewmMM_6OA8LiKOo_7sTeeD8er_91Im3i5W0_gC-35615


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market and was not aware of any untoward incident regarding subject or its sponsors. We are supplying imported wood on the demand to the subject firm. Mr. XXX XXX Of M/S XXX XXX said “we have been working with the M/S XXX XXX Pvt Ltd for last 10-15 years. We are supplying wood to the subject firm on cash and credit of 30 days. He said that they are satisfied with the subject company. They are quite satisfied working with subject firm”. Mr. XXX XXX Of M/S XXX Bank Ltd stated: “We are working with the subject organization for the last 10 years. Subject is well reputed and subject is in this field for a reasonable period and holds strong market contacts. We are purchasing office furniture from the subject firm on cash and credit of 30-45 days”.

Site Visit Photographs





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Finance

Comparative Figures (in Thousands of Sri Lankan Rupee)

30-Jun-08 30-Jun-09 30-Jun-10

Fiscal Fiscal Fiscal

Current Assets 482,683 767,546 926,754

Current Liabilities 567,645 841,537 940,874

Working Capital -84,962 -73,991 -14,120

Other Tangible Assets 382,786 488,427 606,216

Non-Current Liabilities 8,333 112,533 204,236

Tangible Networth 289,491 301,903 387,860

Sales/Income 624,131 675,001 946,848

Net Profit(Loss) after Tax 39,374 44,027 90,751

Inventory 343,065 456,663 584,263

Cash & Bank 25,051 3,506 8,731

Accounts Receivable 42,593 63,047 71,527

Fixed Assets 382,787 488,427 606,216

Accounts Payable 0 203,915 413,872


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Current Liabilities: The Current liabilities of the company have increased on a y-o-y basis with an increase from LKR 841,537,000 in FY 2009 to LKR 940,874,000 in FY 2010. Tangible Net Worth: The Tangible Net worth of the company has increased on a y-o-y basis with an increase from LKR 301,903,000 in FY 2009 to LKR 387,860,000 in FY 2010.

568

842

941

289 302

388

0

200

400

600

800

1,000

2008 2009 2010

Current Liabilities Vs Networth

LKR ('Millions)

Current Liabilities Tangible Networth



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Fiscal Balance Sheet as of 30/XXX/XXXX (in Sri Lankan Rupee Thousands)

Cash & Bank 8,731 Accounts Payable 413,872

Inventory 584,263 Bank Loans 257,430

Deposit-Short Term 2,642 Curr. Portion of Long-Term Debt 20,000

Accounts Receivable 71,527 Due to Customers 205,075

Prepayments 980 Other Payables / Accruals 38,883

Loans & Advances 258,611 Worker's Funds 5,614

TOTAL CURRENT ASSETS 926,754 TOTAL CURRENT LIABILITIES 940,874

Land & Buildings 327,418 Bank Loans 20,000

Plant & Equipment 204,759 Deferred Taxation 23,816

Transportation Vehicles 15,156 Due to Directors / Shareholders 160,420

Furniture, Fixtures & Fitting 4,667

Office Equipment 17,919

Tools & Equipments 34,027

Electric Appliances 2,270

TOTAL FIXED ASSETS 606,216 TOTAL NON-CURRENT LIABILITIES 204,236

Capital 62,544

Revaluation Surplus (Deficit) 67,526

Retained Earnings (Loss) 257,790

TOTAL OTHER ASSETS 0 TOTAL EQUITY 387,860

TOTAL ASSETS 1,532,970 TOTAL LIABILITIES & EQUITY 1,532,970


9 | P a g e

Tangible Net Worth: The Tangible Net worth of the company has increased on a y-o-y basis with an increase from LKR 301,903,000 in FY 2009 to LKR 387,860,000 in FY 2010. Capital Employed: The Capital Employed of the company has increased on a y-o-y basis with an increase from LKR 301,903,000 in FY 2009 to LKR 387,860,000 in FY 2010.

Current Ratio: The Current ratio of the company has increased on a y-o-y basis with an increase from 0.91 times to 0.98 times in FY 2010. Quick Ratio: The Quick ratio of the company has been uneven on a y-o-y basis with an increase from 0.25 times in FY 2008 to 0.37 times in FY 2009 and an decrease to 0.36 times in FY 2010.

289

302

388

289 302

388

0

75

150

225

300

375

450

2008 2009 2010

Tangible Networth Vs Capital Employed

LKR ("Millions)

Tangible Networth Capital Employed

0.85

0.91 0.98

0.25 0.37

0.36

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2008 2009 2010

Tim

es

Liquidity

Current Ratio Quick Ratio




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Profit & Loss Account (Figures in Thousands of Sri Lankan Rupee)

30-Jun-08 30-Jun-09 30-Jun-10

No. of Months 12 12 12

Fiscal Fiscal Fiscal

Sales 624,131 675,001 946,848

Less: Cost of Sales -468,113 -506,375 -707,862

Gross Profit 156,018 168,626 238,986

Other Operating Income 0 0 0

Depreciation 0 -7,461 -8,485

General Operating Expenses -71,952 -69,660 -92,250

Net Operating Profit (Loss) after depreciation & Before interest

84,066 91,505 138,251

Other Non-operating Income 0 3,319 1,046

Total Financial Expenses -36,833 -32,863 -54,605

Net Profit(Loss) before Tax 47,233 61,961 84,692

Plus (Minus) Extraordinary Items 0 -4,108 -5,614

Net Profit Before Taxation & After Extraordinary Items 47,233 57,853 79,078

Income Tax -7,859 -13,826 11,673

Net Profit(Loss) after Tax 39,374 44,027 90,751

Plus (Minus) Extraordinary Items 0 0 0

Net Profit (Loss) After Taxation & Extraordinary Items 39,374 44,027 90,751

Plus (Minus) Retained Earnings (Loss) B/F 109,950 149,324 167,039

Retained Earnings (Loss) C/F 149,324 167,039 257,790

Accounts are audited by S.P. Amjad and Co - Chartered Accountants.


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KEY RATIOS

30-Jun-08 30-Jun-09 30-Jun-10

GROWTH TREND

Sales Growth (%) 8.15 40.27

Net Profit Growth (%) 11.82 106.13

LIQUIDITY

Quick Ratio (times) 0.25 0.37 0.36

Current Ratio (times) 0.85 0.91 0.98

SOLVENCY

Interest Coverage Ratio (times)

Current Liabilities to Inventory (%) 165.46 184.28 161.04

Current Liabilities to Networth (%) 196.08 278.74 242.58

LEVERAGE

Debt Equity Ratio (times) 0.00 0.00 0.00

Total Liabilities to Networth (%) 198.96 316.02 295.24

Fixed Assets to Networth (%) 132.23 161.78 156.30

EFFICIENCY

Collection Period (Days) 25 34 28

Sales to Inventory (times) 1.82 1.48 1.62

Assets to Sales (%) 138.67 186.07 161.90

Sales to Net Working Capital (times) -7.35 -9.12 -67.06

Account Payable (Days)

PROFITABILITY

Operating Profit Ratio (%) 13.47 13.56 14.60

Return on Sales (%) 6.31 6.52 9.58

Return on Assets (%) 4.55 3.51 5.92

Return on Networth (%) 13.60 14.58 23.40

Return on Capital Employed (%) 16.32 20.52 21.84


12 | P a g e

Net Profit Margin Ratio: The Net profit Margin of the company has been uneven on a y-o-y basis with a decrease from 6.31% in FY 2008 to 6.52% in FY 2009 and an increase to 9.58% in FY 2010. Gross Profit Margin Ratio: The Gross profit Margin of the company has been uneven on a y-o-y basis with a decrease from 25.00% in FY 2008 to 24.98% in FY 2009 and an increase to 25.24% in FY 2010.

Total Asset Turnover Ratio: The Total Asset Turnover Ratio of the company has been uneven on y-o-y basis with a decrease from 0.72 times in FY 2008 to 0.54 times in FY 2009 to increase to 0.62 times in FY 2010. Fixed Asset Turnover Ratio: The Fixed Asset Turnover Ratio of the company has been uneven on y-o-y basis with a decrease from 1.63 times in FY 2008 to 1.38 times in FY 2009 to increase to 1.56 times in FY 2010.

6.31 6.52

9.58

25.00 24.98 25.24

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2008 2009 2010

Percen

tag

e

Profit Margins

Net Profit Margin Gross Profit Margin

0.72 0.54

0.62

1.63

1.38

1.56

0.00

0.30

0.60

0.90

1.20

1.50

1.80

2008 2009 2010

Tim

es

Turnover Ratios

Total Asset Turnover Ratio

Fixed Asset Turnover Ratio




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Net Sales to Working Capital : The Net sales to Working Capital have decreased on a y-o-y basis with a decrease from -9.12 times in FY 2009 to -67.06 times in FY 2010. REVENUE STRUCTURE

-----------------------------

Revenue Structure Amount %

Cost of Sales 707862.00 74%

G&A and Selling& Distribution Exp. 92,250 10%

Depreciation 8485 1%

Finance Cost 54605 6%

Others 5,614 1%

Profit 90,751 9%

Total 959,567 100%

Revenue from operating activity 946,848 98.67%

Other Income 12,719 1.33%

Total 959,567 100%

-7.35

-9.12

-67.06

-80.00

-70.00

-60.00

-50.00

-40.00

-30.00

-20.00

-10.00

0.00

2008 2009 2010

Tim

es

Net Sales to Working Capital

Netsales to Working Capital



14 | P a g e

Bank

Information in this report may not represent the full extent of subject's bank relationships. Banking relations are maintained principally with:- NAME : ALLIED BANK LTD ADDRESS : Sri Lanka NAME : JS BANK LIMITED ADDRESS : Sri Lanka NAME : BARCLAYS BANK PLC ADDRESS : Sri Lanka NAME : STANDARD CHARTERED BANK ADDRESS : Sri Lanka LOAN & CREDIT FACILITIES ------------------------- NAME : ALLIED BANK LTD Credit Type : Total Bank Facilities Loan Amount : 200,000,000 Sri Lankai Rupee Property Collateral : (1) Against all present and future assets of the company Other Security : Personal Guarantees of the directors NAME : JS BANK LIMITED Credit Type : Total Bank Facilities Loan Amount : 161,000,000 Sri Lankai Rupee Property Collateral : (1) Against all present and future assets of the company Other Security : Personal Guarantees of the directors NAME : BARCLAYS BANK PLC Credit Type : Total Bank Facilities Loan Amount : 100,000,000 Sri Lankai Rupee Property Collateral : (1) Against all present and future assets of the company Other Security : Personal Guarantees of the directors NAME : STANDARD CHARTERED BANK Credit Type : Total Bank Facilities Loan Amount : 196,000,000 Sri Lankai Rupee Property Collateral : (1) Against all present and future assets of the company Other Security : Personal Guarantees of the directors No independent confirmations were obtainable from banker/(s). INSURANCE --------- COMPANY : New Jubilee Insurance Company Ltd INSURANCE COVERAGE TAKEN ON ASSETS : Building : Fixture & equipment INSURED AMOUNT : LKR 292,776,800,000


15 | P a g e

Registration & Ownership Details REGISTRATION DETAILS --------------------- LEGAL STRUCTURE : Private Limited Liability Company INCORPORATED : XX XXX XXXX REGISTRATION BODY : Securities Exchange Commission FILE NUMBER : XXXXXXX XXXXXXX Sri Lanka REGISTERED OFFICE : XXX XXX Phase 6. XXX Sri Lanka LAST AGM DATE : XX/XXX/XXXX LAST ANNUAL RETURN DATE : XX/XXX/XXXX LAST FINANCIAL STATEMENT DATE : XX/XXX/XXXX Registry details provided by : search at local registry office Started by : XXX X. XXX CAPITAL DETAILS ----------------- AUTHORIZED CAPITAL : LKR 65,000,000.00 ISSUED CAPITAL : LKR 62,543,900.00 PAID-UP CAPITAL : LKR 62,543,900.00 as of 6/May/2011 ORDINARY SHARES : LKR 62,543,900.00 at par value 10.00 SHAREHOLDER(S) --------------- The following details represent the Full Shareholders List. ORDINARY SHARES

Name of Shareholder Location Shares Held % Held

XXX XXX Sri Lanka XXX 46.091

XXX XXX Sri Lanka XXX 45.117

Others XXX 8.792

Shareholdings as at : 6 May 2011


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AUDITORS --------- S.P. Amjad and Co - Chartered Accountants 2nd, Floor, Naqi Arcade 71, Shahrah-E-Quaid - E- Azam, Colombo, Sri Lanka CORPORATE DIRECTORS -------------------- Name : XXX XXX ADDRESS : XXX XXX, XXX, XXX, Sri Lanka OFFICE NUMBERS : Telephone (92) (XX) (XXXXXXXXX) EMAIL ID : [email protected]

Operations Synopsis XXXX-XXXX Manufactures XXXX-XXXX Manufactures XXXX-XXXX Wholesales

46.09%

45.12%

8.79%

XXX XXX

XXX XXX

Others



17 | P a g e

Executives Name : XXX XXX Year Of Birth : XXXX Current Title : Chief Executive Officer Appointed to Present Position: XXXX Started with Subject : XXXX Education : Graduated from university Bachelor of Sciences United Kingdom Active in daily operations : Yes Email : [email protected] Name : XXX XXX Year Of Birth : XXXX Current Title : Director Appointed to Present Position: XXXX Started with Subject : XXXX Education : Graduated from university Bachelor of Mechanical Engineering Active in daily operations : Yes Email : [email protected] Name : XXX XXX Current Title : General Manager Administration Active in daily operations : Yes Name : XXX XXX Current Title : Manager Purchasing Active in daily operations : Yes Materials Name : XXX XXX Current Title : Manager Human Resources Active in daily operations : Yes Name : XXX XXX Current Title : Manager Finance Active in daily operations : Yes Name : XXX XXX Current Title : Manager Information Technology Active in daily operations : Yes Name : XXX XXX Current Title : Manager Marketing Active in daily operations : Yes Name : XXX XXX Current Title : General Manager Manufacturing Current Title : General Manager Works Active in daily operations : Yes


18 | P a g e

Customers

Subject maintains 2000 accounts / customers. MAJOR CUSTOMERS Construction Company(ies) Contractor(s) Department Store(s) Financial Institution(s) Government Body(ies) Hotel(s) Individual(s) Manufacturer(s) Property Developer(s) Retailer(s) End-Users Trading Firm(s) Transportation Industry XXX XXX Sri Lanka 17.6 % of Sales XXX XXX Sri Lanka 2.8 % of Sales XXX Sri Lanka 1.4 % of Sales XXX Limited Sri Lanka 4.29 % of Sales XXX Bank IMPORT / EXPORT --------------- Import : LKR 270,000,000 Export : LKR 91,000,000


19 | P a g e

Suppliers

XXX Enterprises Sri Lanka XXXX Sri Lanka XXX Sri Lanka XXX Sri Lanka

Purchase & Sales Terms

PURCHASES --------- LOCAL : 38 % INTERNATIONAL : 62 % IMPORTS FROM:- Italy Middle East United States Taiwan R.O.C. Australia China (People's Republic) Europe India Malaysia Canada PURCHASING TERMS ---------------- LOCAL PURCHASE TERMS cash Special Terms 30 days

IMPORT TERMS cash Special Terms 60 days Letter of Credit

SALES TERRITORY --------------- LOCAL : 91 % INTERNATIONAL : 9 % EXPORTS TO:- Middle East Congo Afghanistan


20 | P a g e

SELLING TERMS ------------- LOCAL SALES TERMS TERMS : cash Special Terms 30 days EXPORT TERMS TERMS : cash Special Terms 30 Letter of Credit

Employee Strength & Location

EMPLOYEE(s) - CURRENT --------------------- Employees (here) : 765 Estimated Total Employees : 1,040 Estimated as at 06/May/2011 Total Employees include : Full-Time Employees : 630 Seasonal Employees : 410 EMPLOYEE(s) - PREVIOUS ---------------------- YEAR:- : 2010 Total Employees : 825 Estimated Previous year's employees including : Full-Time Employees : 550 Seasonal Employees : 275 CAPACITY AND PRODUCTION OUTPUT ------------------------------ PRODUCT NAME : XXX Actual Output : 6,850,000 Units per day 2 shifts per day PRODUCTION CAPACITY : 8,000,000 Units per day 2 shifts per day AGENCIES HELD - BRAND NAME -------------------------- Brand Name : XXX Principal Name : XXX Subject as : Franchisee Description : XXX Principal Name : XXX Subject as : Franchisee Description : XXX


21 | P a g e

AMENITIES / FACILITIES ---------------------- 132 Automobile(s) 3 Classroom(s) 1 Doctor(s) 5 Truck(s) TRADESTYLES ----------- XXX

ISO CERTIFICATION ----------------- Subject was awarded ISO 9001:2000 LOCATION -------- SIZE OF PREMISE : 1250000 square feet TYPE OF OCCUPATION: Owned PREMISES USED AS : Administrative office ADDITIONAL CURRENT ADDRESSES ---------------------------- MAILING ADDRESS XXX Road XXX Town XXX XXX Sri Lanka

Branch (es)

XXX XXX XXX. XXX Sri Lanka Location Type : Showroom Area: 125,000 square feet XXX Town XXX Lahore Sri Lanka Operates as Rented Premises Location Type : Showroom Area : 325,000 square feet XXX, XXX, XXX XXX Sri Lanka Operates as Rented Premises Location Type : Showroom Area : 80,000 square feet CURRENCY: All amounts in this report are in Sri Lankai Rupees unless otherwise stated.


22 | P a g e

The D&B Rating

D&B Rating - The D&B rating consists of two parts, the Financial Strength Indicator and the Risk

Indicator.

For example: in the case of a 2A 4 rating, 2A means the financial strength of the business and the 4 is the risk

indicator.

The Risk Indicator is used in conjunction with the Financial Strength Indicator. The Risk Indicator reflects D&B's

opinion of the risk associated with trading with a specific business, notably the likelihood of business continuance

or failure over the next 12 months. Created from expert rules systems, the Risk Indicator is refreshed whenever

data is loaded onto our databases. Please see the table below for the Risk Indicators and their corresponding

values.

Risk Indicators

4 Significant

level of risk

Take suitable

assurances before

extending credit

Assigned to concerns of known financial weakness. A number of

years losses, higher than normal working capital deficit, a

negative tangible net worth which is the worsening, court

judgements, bad payments etc. This risk is associated with

being a creditor of these concerns is high or significant

3 Greater than

average risk

Proceed with

transaction but

monitor closely

Assigned to concerns believed to be financially sound but with a

history of slow payments or some losses or working capital

deficit. The risk associated with being a creditor of these

concerns is higher and would be classified as potentially slow

payers or fair trade risk

2 Low risk Proceed with

transaction

This is assigned to financially sound concerns, having no known

record of bad payments and paying suppliers quickly. The risk

associated with being a creditor of these concerns would be low

and they would be classified as ordinary trade risk

1 Minimal risk Proceed with

transaction - offer

terms required

Assigned to companies of undoubted credit standing and

financially strength. The risk associated with being a creditor of

these concerns would be negligible or zero, the concern which

pays bills promptly or discount.

- Insufficient

information

to assign a

risk indicator

No public information

or D&B proprietary

information available

to indicate trading

activity

Assigned to concerns where there is insufficient information to

express any opinion on the condition, financial soundness or

payment history of the concern. A concern with no telephone

number will also be assigned a "-" condition


23 | P a g e

The Financial Strength Indicator is based on either the Net Worth or Issued Capital. The table below contains

the possible values.

Financial Strength Indicator

Range

Figures in Sri Lanka Rupee

Net Worth Capital FROM TO

5A 5AA 1,566,000,000 and over

4A 4AA 313,000,001 1,566,000,000

3A 3AA 156,000,001 313,000,000

2A 2AA 31,000,001 156,000,000

A AA 18,000,001 31,000,000

B BB 9,300,001 18,000,000

C CC 3,000,001 9,300,000

D DD 1,200,001 3,000,000

E EE 375,001 1,200,000

F FF 125,001 375,000

G GG 0 125,000

Alternative Ratings Used

N Financial Strength is negative

O Financial Strength is undisclosed

NB New Business: less than 24 months

NQ Out of Business: Business has ceased to trade


24 | P a g e

Financial Rating Glossary

Key Business Ratios are used to identify irregularities in the status and future potential of a company.

Name Formula Explanation

Current

Ratio (x)

Total Current

Assets / Total

Current Liabilities

This ratio shows the cover by current assets of short term creditors, and the

higher the ratio the more assurance there is that payment of creditors can be

met

Solvency

Ratio

(%)

((Total Current +

Deferred + Long

Term Liabilities) /

Tangible Net

Worth) x 100

From this can be seen the extent to which the company is financed by creditors

and debt rather than permanent finance.

The higher the ratio the more likely it is that the debt (either short term or long

term) will be a burden to the company. The effect is higher interest changes,

lower profits and a squeeze on liquidity to the disadvantage of creditors.

Fixed

Assets to

Net

Worth

(%)

(Total Fixed Assets

/ Tangible Net

Worth) x 100

The proportion of net worth that consists of fixed assets will vary greatly from

industry to industry, but in general terms a company is under capitalised if fixed

assets exceed net worth. In this case it is possible that the company has too

much debt, and it should therefore be examined with care.

If on the other hand fixed assets are much lower than net worth the company is

over capitalised and is either extremely cautious or in a position to expand. Thus

a ratio either well in excess of the median, or well below it, means that the

company should be looked at with care.

Current

Liabilities

to Net

Worth

(%)

(Total Current

Liabilities /

Tangible Net

Worth) x 100

This contrasts the funds that creditors are temporarily risking with a company

with the funds permanently invested by the owners.

The higher the ratio the less security for creditors. Care should be exercised

when selling to any company with creditors of less than one year exceeding two

thirds of net worth

Asset

Turnover

(%)

(Turnover / Total

Assets(including

intangibles)) x 100

This ratio measures how efficiently the company's management has been in

generating sales from the assets at its disposal.

The measure can vary considerably from industry to industry and should

therefore be judged according to the industry norm.

Sales to

net

working

capital

(x)

Turnover / Net

working capital

This ratio indicates whether a company is overtrading (handing an excessive

volume of sales in relation to working capital). Companies with substantial sales

gains often reach a level where their working capital becomes strained.

Even if they maintain an adequate total investment for the volume being

generated (assets to sales) that investment may be so centred in fixed assets or

other non-current items that it will be difficult to continue meeting all current

obligations. A ratio falling into either an extremely high or low position may

indicate potential problems.


25 | P a g e

Confidentiality

CONFIDENTIAL....THIS INFORMATION IS PROVIDED BY DUN & BRADSTREET SUBJECT TO THE TERMS AND

CONDITIONS OF YOUR SUBSCRIPTION CONTRACT AND IS NOT TO BE DISCLOSED.

This report is forwarded to the Subscriber in strict confidence for the use by the

Subscriber as one factor to consider in connection with credit and other business

decisions. This report contains information compiled from information which Dun &

Bradstreet does not control and which has not been verified unless otherwise

indicated in this report. Dun & Bradstreet therefore cannot accept responsibility for

the accuracy, completeness or timeliness of the report. Dun & Bradstreet disclaims

all liability for any loss or damage arising out of or in anyway related to the

contents of this report. This material is confidential and proprietary to Dun &

Bradstreet and/or third parties and may not be reproduced, published or disclosed

to others without the express authorization of Dun & Bradstreet or the General

Counsel of Dun & Bradstreet.

COPYRIGHT 2011 DUN & BRADSTREET. THIS REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY

FORM OR MANNER WHATSOEVER.

-- End of Report --


Documents

XXX XXX (PVT) LTD XXX D-U-N-S XX-XXX-XXXX · strategically located at XXX Road, XXX Town, XXX, XXX, Sri Lanka. Since its inception in XXX, XXX XXX (Pvt) Ltd. has directed its efforts