MIRA INFORM REPORT

Report Date :

27.04.2013

IDENTIFICATION DETAILS

Name :	LEOCH LANKA (PVT) LTD

Registered Office :	# 71, Deonston Place, Colombo 03

Country :	Sri Lanka

Date of Incorporation :	25.01.2012

Com. Reg. No.:	PV 83927

Legal Form :	Private Limited Liability Company (in operation)

Line of Business :	Manufacturing and Distributing Leoch Batteries

No. of Employees :	Not Available

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 :	Unknown
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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Sri Lanka

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

SRI LANKA - ECONOMIC OVERVIEW

Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam (LTTE). The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Growth slowed to 3.5% in 2009. Economic activity rebounded with the end of the war and an IMF agreement, resulting in two straight years of 8% growth in 2010-11. Growth moderated to about 6% in 2012. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern. Strong remittances from Sri Lankan workers abroad have helped to offset the trade deficit.

Source : CIA

GENERAL

- Basic information at a glance

a.	Name of Subject of Inquiry	:	LEOCH LANKA (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (in operation)
c.	Managing Director	:	Zheng Li Qing
d.	Primary Line of Business	:	Manufacturing and Distributing Leoch Batteries
e.	Place of Business & Factory	:	# 71, Deonston Place, Colombo 03, Sri Lanka. Tel. No: (00 94 11) 739 4220 Fax No: (00 94 11) 739 4223 E Mail: andy.Chin@Leach.com
f.	No. of Employees	:	Not Disclosed

COMPANY DETAILS

- Registration and Shareholder Details

a.	Registration No		:	PV 83927
	Date of Registration		:	25^th January 2012
b.	Registered Office		:	Lower Block, Level 6 (EAST), World Trade Centre, Colombo 01
c.	Board of Directors As At 25^th January 2012		:	Zheng Li Qing		Managing Director
				Liu Hanni		Director
				Cheung Sum		Director
d.		Issued Share Capital	:	Rs. 1,000.00
e.		Nominal Value of Share	:	Rs. 10.00
f.		Share Holders As At 25^th January 2012		Share Holders	No. of Shares
				Leoch Investment (SINGAPORE) Pte.Ltd	100
g.		Auditors	:	Not Disclosed
h.		Company Secretaries	:	J and J Secretarial and Management Services (PVT) Ltd

FINANCIAL DETAILS

- Most recent available Financial Information

THE COMPANY HAS DECLINED TO PROVIDE INFORMATION ON ITS FINANCES

Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited Liability is not required to make public disclosure of their annual financials. Therefore no financials are available for this entity

CURRENT INVESTIGATION

· History.

The Subject Company LEOCH LANKA (PVT) LTD is a Private Limited Liability Company incorporated on 25^th January 2012 under registration number PV 83927.

· Location.

The Subject Company is located at the client # 71, Deonston Place, Colombo 03

· Operations Details.

General

The Companies Primary Line of Business is manufacturing and distributing Leoch Batteries

Products

Batteries

No of Employees

Not Disclosed

Director’s Details

01)

Name	Zheng Li Qing
PP Number	G29074683
Nationality	Chinese

02)

Name	Liu Hanni
PP Number	G38581630
Nationality	Chinese

03)

Name	Cheung Sum
PP Number	K00433601
Nationality	Chinese

· Financial Data

The company has declined to provide information on its finances

Based on the corporate laws of Sri Lanka, legal entities which are Private Company with

Limited Liability is not required to make public disclosure of their annual financials.

Therefore no Financials are available for this entity

· Trade references

The subject company did not provide any trade reference referrals

· 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.29
UK Pound	1	Rs.83.88
Euro	1	Rs.70.67

INFORMATION DETAILS

Report Prepared by :

PRL

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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