MIRA INFORM REPORT

Report Date :

29.04.2013

IDENTIFICATION DETAILS

Name :	MODERN CHEMICALS

Registered Office :	# 157, 4^th Cross Street, Colombo 11

Country :	Sri Lanka

Date of Incorporation :	31.05.1975

Com. Reg. No.:	WA 3230

Legal Form :	Partnership Company (In Operation)

Line of Business :	Importers & General Merchants of Commodities & Food items

No. of Employees :	Approximately 20

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	:	MODERN CHEMICALS
b.	Legal Form & Status	:	Partnership Company (In Operation)
c.	Managing Partner	:	Saminda Silva
d.	Primary Line of Business	:	Importers & General Merchants of Commodities & Food items
e.	Head Office & Place of Business	:	# 157, 4^th Cross Street, Colombo 11, Sri Lanka. Tel No: (00 94 11) 243 3069, 233 2398, 242 1337 Mobile: (00 94 77) 788 0042- Mr. Saminda Silva Fax No: (00 94 11) 268 8433 E Mail: modchem@lankacom.net
f.	No. of Employees	:	Approximately 20

COMPANY DETAILS

- Registration and Shareholder Details

a.	Registration No		:	WA 3230
b.	Year of Registration		:	31^st May 1975
c.	Registered Office		:	# 157, 4^th Cross Street, Colombo 11.
d.	Partners		:	Saminda Silva	Managing Partner
				Siripala Silva	Partner
e.	Auditors	:		Not Disclosed
f.	Bank	:		Seylan Bank, Commercial Bank, HSBC

FINANCIAL DETAILS

- Most recent available Financial Information

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 MODERN CHEMICALS is a Partnership Company incorporated in 31^st May 1975 under registration number WA 3230. The partners are said to be the father and the son.

The Proprietorship/Partnership Companies are registered at the Provincial Registrar of Companies

· Location.

The Subject Company is located at the client # 157, 4^th Cross Street, Colombo 11.

The subject company is located in a highly commercial area in the city of Colombo which is in close proximity to the Colombo harbour.

· Operational Details.

General

The subject company primary line of business is Importers & General Merchants of Commodities & Food items for the local companies.

Products

Onions, potatoes, spices, pulses, Rice, Canned fish, Sugar etc.

Import Countries

India, Pakistan, Dubai, Turkey, Canada, Australia, USA, Singapore, China and Thailand.

Employees

The employee strength of the subject company is approximately 20 employees.

· 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

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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