MIRA INFORM REPORT

Report Date :

20.12.2013

IDENTIFICATION DETAILS

Name :	SARA TRADING COMPANY

Registered Office :	# 98/ 1 L Avissavella Road, Mahabuthgamuwa, Mulleriyawa New Town (Angoda)

Country :	Sri Lanka

Date of Incorporation :	22.05.2006

Com. Reg. No.:	PP 5079

Legal Form :	Partnership Concern

Line of Business :	buying, selling and exporting of Natural Rubber Sheets and Copra.

No. of Employees :	10 (approximately)

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 – September 30th, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

Name of Subject of Inquiry	:	SARA TRADING COMPANY
Legal Form & Status	:	Partnership Concern ( In Operation )
Managing Partner	:	S. I. M. M. Sirraj
Primary Line of Business	:	Buyer , Dealer and Exporter of Natural Rubber Sheets & Copra
Office, Stores & Place of Business	:	# 98/ 1 L Avissavella Road, Mahabuthgamuwa, Mulleriyawa New Town (Angoda) Sri Lanka. Tel.: (00 94 11) 256 9288 , 2549025, 314 1700 Fax: (00 94 11) 256 9288 Mobile:(00 94 77) 751 0114 - Mr. Sirraj E. mail : sirraj@eureka.lk
Former Address	:	No. 33/C/1., Mahabuthgamuwa Road Mahabuthgamuwa, Angoda Sri Lanka.
No of Employees	:	Approximately 10

CONCERN DETAILS

Registration and Shareholder Details

Registration No	:	PP 5079
Date of Registration	:	22^nd May 2006
Registered Office		# 98/ 1 L, Avissavella Road, Mahabuthgamuwa, Angoda. Sri lanka
Partners	:	Mr. S. I. M. M. Sirraj
Partners	:	Mrs. Sirraj
Auditors	:	Amarasekera & Company
Bankers	:	-Not Disclosed-

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 Concern SARA TRADING COMPANY is a partnership incorporated under registration number PP 5079 on 22^nd May 2006.

The Proprietorship/Partnership companies are being registered at the Provincial

Registrar of Companies.

· Location.

The client 98/1L, Avissavella Road, Mahabuthgamuwa, Mulleriyawa New Town ( Angoda) approx. 15 kilo meters from Colombo city, is the Office and Stores of the subject concern.

· Operational Details.

General

The subject concern’s primary line of business is buying, selling and exporting of Natural Rubber Sheets and Copra. The rubber sheets are also sold to local rubber product manufactures.

Products

Natural Rubber Sheets and Copra

Country

Pakistan and India

Employees

Approximately 10

Financial Data

The concern refused to provide information on its finances.

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

Trade references

The subject concern did not provide any trade reference referrals

Credit Recommendations

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

No computerised data bases exist to make checks whether the partners or the concern 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.62.38
UK Pound	1	Rs.102.15
Euro	1	Rs.85.29

INFORMATION DETAILS

Report Prepared by :

MNL

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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