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Funding Proposal
545 D, SRI SANGARAJA MAWATHA ,Colombo 10 Tel:+94-112-431950
Statement of Confidentiality and Non-Disclosure
This Document contains proprietary and confidential information. All data Submitted to the
recipient, provided in reliance upon its consent not to use or disclose any information
contained herein except in the context of its business dealings with Colonial Electrical Private
Limited. The recipient of this document agrees to inform present and future employees of his
or her respective organization who view or have access to its content of its confidential
nature.
The recipient agrees to instruct each employee that they must not disclose any information
concerning this document to others except to the extent those matters are generally known
to and are available for use by the public. The recipient also agrees not to duplicate or
distribute or permit others to duplicate or distribute any material contained herein without
Colonial Electrical Private Limited’s written consent. Colonial Electrical Private Limited retains
all title, ownership, intellectual property rights to the material and trademarks contained
herein, including all supporting documentation, files, marketing material and multimedia.
“To gain working capital financing to the amount of LKR 200 Million”
Prepared by
Funding Rational 5
Company Background 6
Financials Analysis 8
Product Portfolio 12
Colonial Electrical Pvt Ltd, a subsidiary of Colonial Hardware Group established in 1974, is a
primary importer and distributor of all types of Industrial and Domestic electrical
equipment’s. The company is a key supplier to most of the infrastructure projects that take
place in Sri Lanka.
Currently, Sri Lanka is undertaking key infrastructure projects throughout the country and out
of which the Port city project and the Hambantota harbor & industrial zone are of special
significance. We as a leading industrial electrical equipment distributor, intend to capitalize
on this opportunity to supply our products to these projects.
The specific purpose of this proposal is to provide a compelling case for a working capital loan
of LKR 200 million from an established institutional lender. The company intends to use the
working capital infusion to fulfill the following objectives:
Colonial Electrical Equipment’s was incorporated under the Companies Act No 07 of 2007 and
subsequently was converted into a Limited Liability Company incorporated under the
Companies Act No. 07 of 2007and registered as Colonial Electrical (Pvt) Ltd. We are a
subsidiary of colonial hardware Group which has been in business for the past 42 years.
Since 2001, the company has been successfully active in the distribution of industrial and
domestic electrical equipment and other electrical items & accessories. We are Island wide
suppliers to leading infrastructure Projects, Government Departments, Hotels, Hospitals and
Etc. The company stores are situated at No. 545D, Sri Sangarajah Mawatha, Colombo 10,
which is at the heart of the Steel-Hardware Bazaar in the city.
Our wide ranges of electrical products are imported from Malaysia, China, India and Europe.
To name a few, Axial Fans Centrifugal Fans, Exhaust Fans, Cooling Fans, Pedestal Fans,
Decorative Ceiling Fans Etc. Pumps, Mini Circuit Breakers, AC Contactor, Starters, Surge,
Protective Divide (SDP) Timer Relays, Cable Lugs – Wiring Accessories, Etc., Light Fittings,
Pumps, Crimping Tools, G I PVC Conduit Fittings, etc. and many more, for both the Industrial
and Domestic Markets.
Gross Profit (GP) 168,000,000 176,400,000 185,220,000 194,481,000 204,205,050 214,415,303 225,136,068
less Expenses
Selling & Distribution 10,000,000 10,500,000 11,025,000 11,576,250 12,155,063 12,762,816 13,400,956
Net Profit Before Interest & Taxes 143,650,000 150,832,500 158,374,125 166,292,831 174,607,473 183,337,846 192,504,739
Net Profit Before Tax 97,150,000 104,332,500 111,874,125 38,542,831 64,857,473 183,337,846 192,504,739
Net Profit After Tax 69,948,000 75,119,400 80,549,370 27,750,838 46,697,380 132,003,249 138,603,412
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
-
2019 2020 2021 2022 2023 2024 2025
Earnings
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
-
2019 2020 2021 2022 2023 2024 2025
Operating Ratios
Sales 100% 100% 100% 100% 100% 100% 100%
Gross Profit 20% 20% 20% 20% 20% 20% 20%
Net Profit Before Tax 11.57% 12.42% 13.32% 4.59% 7.72% 21.83% 22.92%
Income Tax 3.24% 3.48% 3.73% 1.28% 2.16% 6.11% 6.42%
Net Profit After Tax 8.33% 8.94% 9.59% 3.30% 5.56% 15.71% 16.50%
Debt Coverage Ratio 3.09 3.24 3.41 1.30 1.59
Rs.1,500,000,000
Rs.1,000,000,000
Rs.500,000,000
Cashflow
Rs.-
Rs.(500,000,000)
Rs.(1,000,000,000)
Rs.(1,500,000,000)