MIRA INFORM REPORT

 

 

Report Date :

11.12.2013

 

IDENTIFICATION DETAILS

 

Name :

ASIABIKE INDUSTRIAL LIMITED

 

 

Registered Office :

# 114, Galle Road, Henamulla, Panadura

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

20.04.1994

 

 

Com. Reg. No.:

N (PVS/PBS) 12880

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Manufacture and exporting of mountain and all terrain bicycles

 

 

No. of Employees :

400

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow But Correct

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 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Sri Lanka

A2

A2

 

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

       

Name of Subject of Inquiry

:

ASIABIKE INDUSTRIAL LIMITED

Legal Form  & Status

:

Public Limited Liability Company (In operation) – not listed with Colombo Stock Exchange

Managing Director

 :

M. F. Mohamed Isthiark

Primary Line of Business

:

Manufacture and exporting of mountain and all terrain bicycles

Place of Business

&

Factory

:

 

# 114, Galle Road,

Henamulla,

Panadura,

Sri Lanka

 

Tel. No: (00 94 38) 223 2327

Fax No: (00 94 38) 223 4104

 

E Mail: asiabike@asiabike.lk

               irfan@asiabike.lk

 

No. of  Employees

:

Approximately 400

           

 

COMPANY DETAILS  - Registration and Shareholder Details

 

Registration No

:

N (PVS/PBS) 12880

Date of Registration

:

20th April 1994

Re-registration No

:

PB 1373

Date of Re-registration

:

3rd May 2010

Registered Office

:

# 114, Galle Road, Henamulla, Panadura

Board of Directors

As At

14th October 2013

:

M. F. Mohamed Isthiark

Managing

Director

M. F. Mohamed Ifthikar

Director

M. F. Mohamed Ilyas

Director

F.A. Mohamed Farook Mohamed

Director

Total No. of Issued Shares

:

 17,200,050  

                          Ordinary Shares

 

13,760,040

3,440,010

 

Total Value of Shares

 

Rs.  54,524,158

  13,760,040

40,764,118

 

Nominal Value of Share

:

Not applicable vide Companies Act #7 of 2007.

 

Share Holders

As At

14th October 2013

:

 

                       Share Holders

No. of Shares

 

A. W. Mohamed Farook

12,537,537

 

M. F. Mohamed Ifthikar

812,500

 

M. F. Mohamed Ilyas

1,037,500

 

M. F. Mohamed Isthiark

2,812,513

 

Auditors

:

SJMS Associates

 

Company Secretaries

:

Varners International (Pvt) Ltd

 

Bankers

:

HSBC

Hatton National Bank PLC

Bank of Ceylon

Peoples Bank

 

 

 

Directors Details

 

         01)

Name

M. F. Mohamed Isthiark

ID Number

613352791 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

30th November 1961

Age

 50Years

 

            02)

Name

M. F. Mohamed Ifthikar

ID Number

591050060 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

14th April 1959

Age

53 Years

 

            03)

Name

M. F. Mohamed Ilyas

ID Number

601920140 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

10th July 1960

Age

52 Years

 

         04)

Name

F.A. Mohamed Farook Mohamed

ID Number

352233226 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

10th August 1935

Age

50 Years

 

3) 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

 

Company Logo

 

·         History.

                  The Subject Company ASIABIKE INDUSTRIAL LIMITED is a Public Limited Liability Company (not listed with Colombo Stock Exchange) incorporated on 20th April 1994 under registration number N (PVS) 12880 and then the company was re-registered on 03rd May 2010 under registration number PB 1373.The subject company is BOI Approved Company

 

                  The subject company was earlier known as ASIABIKE INDUSTRIAL (PRIVATE) LIMITED and it was changed to ASIABIKE INDUSTRIAL LIMITED on 09th September 2005.

 

·         Location

The Subject Company is located at the client # 114, Galle Road, Henamulla, Panadura, Sri Lanka situated on the southern highway, 23 km south of the Colombo Port and 55 km from the Airport.

 

·         Operations Details.

 

General

The subject company primary line of business is manufacture and exporting of mountain and all terrain bicycles in Sri Lanka

 

With the use of modern technology and a highly skilled workforce, the factory is producing at full capacity at present. Capacity building and production efficiencies have enabled Asiabike to increase production in the last 5 years by 180%. The factory also has the capacity to produce 1500 bicycle in an 8 hour shift. The average production at present is around 25,000 – 30,000 bikes a month.

Products

Mountain and all terrain bicycles

-          Kids

-          Freestyle

-          BMX

-          MTB

-          Folding Bikes

-          Trekking

     

 

Export Country

United Kingdom, Italy, France, Belgium, Netherlands, Germany, Finland and Russia Greece, Holland, Japan to name a few

 

No of Employees

Approximately 400

 

·         Financial Data

 

                  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 National Chamber of Exporters

                  Chamber of Commerce

                  Board of Investment

 

 

·         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.61.20

UK Pound

1

Rs.100.64

Euro

1

Rs.84.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.