MIRA INFORM REPORT

Report Date :

18.07.2013

IDENTIFICATION DETAILS

Name :	GURU ENTERPRISES

Registered Office :	# 150, Bankshall Street, Colombo 11

Country :	Sri Lanka

Date of Incorporation :	Not Available

Com. Reg. No.:	Not Available

Legal Form :	Proprietorship Concern

Line of Business :	Importers & Distributors of Industrial Sewing Machines

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

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

Name of Subject of Inquiry	:	GURU ENTERPRISES
Legal Form & Status	:	Proprietorship Concern (In Operation)
Managing Partner	:	H. M. Samsulabdeen
Primary Line of Business	:	Importers & Distributors of Industrial Sewing Machines
Office & Place of Business	:	# 150, Bankshall Street, Colombo 11. Sri Lanka Tel No: (00 94 11) 243 9518 Fax No:(00 94 11) 245 1683 Email: guru01@sltnet.lk
No. of Employees	:	Not disclosed

CONCERN DETAILS

Registration and Shareholder Details

Registration No	:	Not disclosed
Date of Registration	:	Not disclosed
Registered Office	:	# 150, Bankshall Street, Colombo 11.
Proprietor	:	H. M. Samsulabdeen
Auditors	:	Not Disclosed
Bankers	:	Not Disclosed

CURRENT INVESTIGATION

Business Card of the Subject Concern

HISTORY:

The Subject Concern GURU ENTERPRISES is a Proprietorship concern .

When contacted the concern they declined to provide concern details other than information given in this report, without having the identity of the end user of this enquiry.

The Proprietorship/ Partnership companies are being registered at the Provincial Registrar of Companies and when the owner does not provide the registration details it is not possible to extract such details from the Registrar’s office.

Location:

The subject concern is located at the client # 150, Bankshall Street, Colombo 11 which is a highly commercial area of the Capital Colombo. Besides, the Subject Concern GURU ENTERPRISES is situated in ground floor of the two store building and there was a name board in front of the concern . Furthermore, size of the concern approximately 60m². Guru Enterprises is a Subsidiary of Guru Industries.

OPERATIONAL DETAILS:

General

The subject concern ’ primary line of business is Importers & Distributors of Industrial Sewing Machines.

Products

Juki machines and accessories

Importing Countries

India, China

Employees

Not disclosed

Financial Data

The concern 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 Partnerships/Proprietorship are 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

General Comments.

When contacted the Subject Concern they refused to provide any information of the concern without knowing the identity of the end user of the enquiry.

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.59.36
UK Pound	1	Rs.89.69
Euro	1	Rs.77.99

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%)

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