MIRA INFORM REPORT

Report Date :

23.03.2011

IDENTIFICATION DETAILS

Name :	ELSTEEL (PVT) LTD

Registered Office :	Spur Road 2, Phase 1, Export Processing Zone, Katunayake.

Country :	Sri Lanka

Date of Incorporation :	06.02.1981

Com. Reg. No.:	PVS 7248

Legal Form :	Private Limited Liability Company (In Operation)

Line of Business :	Manufactures, Exporters & distributors of, Sheet Steel enclosures for Switch Boards and Control Panels & Accessories

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	No Complaints

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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Sri Lanka

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Name of Subject of Inquiry	:	ELSTEEL (PVT) LTD
Legal Form & Status	:	Private Limited Liability Company (In Operation)

Managing Director	:	L.E. Land Sperg

Primary Line of Business	:	Manufactures, Exporters & distributors of, Sheet Steel enclosures for Switch Boards and Control Panels & Accessories

Place of Business & Factory	:	Spur Road 2, Phase 1, Export Processing Zone, Katunayake. Sri Lanka Tel: (00 94 11) 2 259 333/ 2 253183 / 225 2485 Fax: (00 94 11) 2 252 698 Email : elsales@slt.lk elsteel@elsteel.com Contact Person: Mr. Nayana Ranatunga, Marketing Manager
No. of Employees	:	Approximately 450

GENERAL - Basic information at a glance

COMPANY DETAILS - Registration and Shareholder Details

Registration No	:	PVS 7248
Date of Registration	:	06^th February, 1981
Re-Registration No	:	PV 2369
Date of Re-Registration		11^th February 2008
Registered Office	:	Spur Road 2, Phase 1, Export Processing Zone, Katunayake. Sri Lanka
Board of Directors As at 25^th May 2009	:	L.E. Land Sperg (Danish)	Managing Director
		F. Ea Lind ( Danish)	Director
		L.A. Land Sperg (Danish)	Director
		J.E.G. William (British)	Director
Authorised Share Capital	:	Not Applicable
Issued Share Capital	:	Rs. 26,500,000.00
Nominal Value of Share	:	Rs. 1000.00
Share Holders As at 25^th May 2009	:	Share Holders	No. of Shares
		L.E. Land Sperg	26,498
		F. Ea Lind	02
Auditors	:	M/S Tudor V Perera & Company
Company Secretaries	:	Financial Consultants and Allied Services Ltd
Bankers	:	Not disclosed

Information declined by

Name : Ms. Chandani

Designation: Accountants

Date: 23.03.2011

CURRENT INVESTIGATION

· History.

The Subject Company ELSTEEL (PVT) LTD is a Private Limited liability Company incorporated on 06^th February, 1981 under Registration No. PVS 7248 and Re-registered in terms of Companies Act # 7 of 2007 on 11^th February 2008 under Registration No. PV 2369.

This is a Board of Investment (BOI) approved company.

· Location

The subject company is located at the client given address Spur Road 2, Phase 1,

Export Processing Zone, Katunayake, approx. 25 kilo meters north of Colombo.

· Operational Details.

General

The subject company’s primary line of business is Manufacture, Export & Distribution of Sheet Steel enclosures for Switch Boards and Control Panels, and all kinds of accessories.

El Steel is a one stop supplier of all electrical enclosures from the smallest terminal boxes to

the largest panel boards.

They assure you to provide the very best and innovative enclosure system in the market as their techno module is the most modern of all modular systems and are constantly developing. They claim that Techno module can accommodate all brands of electrical equipment since it is not linked to any breaker manufacturer.

Products

Sheet Steel enclosures for Switch Boards and Control Panels, Distribution Boards, Wall mounted/ floor standing boxes/cabinets, Power cassettes, Panel boards, Motor Vision, Marine Simulators, Green Panels, Chassis, Brackets, Crowbar mounting rails, Mounting plates etc…

Distribution Boxes, panels & boards.

Country

Europe, Americas, Middle East, Africa,

Australia, Asia, Singapore/ Malaysia, China, Russia etc.

Company is having a production plant in Goa, India and distributors in several countries in the above mentioned regions.

Employees

Approximately 450

· Financial Data

The company has declined to provide information on its finances

In Sri Lanka, Private limited liability/ Partnership/ Proprietorship Companies do not

publish their Company Accounts for public knowledge, other than their shareholders.

· General Comments

The company provided any production related information when approached for purposes of preparing this report. Hence, most of the information in this report has been obtained from other sources but clearly originating from the company.

· Trade References:

Board of Investment (BOI) Sri Lanka

· Credit Recommendations

Since no financial information has been forthcoming from the company, it is not possible to comment on the merits or otherwise of the company.

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.

ANALYSIS & RATING - Appraisal and Rating of Subject Company

Rating:
Business Trend	Growing
Management Capability	Average
Commercial Morality	Average
Reputation	Average

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.97
UK Pound	1	Rs.73.35
Euro	1	Rs.63.98

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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