MIRA
INFORM REPORT
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Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
JANATHA STEELS |
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|
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Registered Office : |
# 20, Quarry Road,
Colombo- 12 |
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Country : |
Sri Lanka |
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Date of Incorporation : |
12.03.1986 |
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Com. Reg. No.: |
W 2639 |
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Legal Form : |
Partnership Company (in operation) |
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Line of Business : |
Importers and General Hardware Merchants and Suppliers |
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No. of Employees : |
Approximately 200 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
: |
JANATHA STEELS |
|
b. |
Legal Form & Status |
: |
Partnership Company (in operation) |
|
c. |
Managing Partner |
: |
Subramanian
Vasudevan |
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d. |
Primary Line of Business |
: |
Importers and General Hardware Merchants and
Suppliers |
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e. |
Place of Business & Factory |
: |
#
20, Quarry Road, Colombo- 12 Sri
Lanka Tel.
No: (00 94 11) 232 1431/ 233 8607/
232 5807/245 4282 Fax No: (00 94 11) 234 5667 E Mail: janathas@live.com
info@janathasteels.com |
|
f. |
No. of
Employees |
: |
Approximately 200 |
COMPANY DETAILS
-
Registration and Shareholder Details
|
a. |
Registration No |
: |
W 2639 |
||
|
b. |
Date of Registration |
: |
12th March 1986 |
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c. |
Registered Office |
: |
#
20 Quarry Road Colombo -12. |
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e. |
Partners |
: |
Subramanian Vasudevan |
Managing Partner |
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|
Marimutthu Pillei Pathmanadan |
Partner |
||||
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Muththiya Nadaraja |
Partner |
||||
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Murugesan Vydeeswaran |
Partner |
||||
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Amutha Gajendra |
Partner |
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Malani Gajendra |
Partner |
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Auditors |
: |
Not Disclosed |
|||
|
g. |
Bankers |
: |
Hatton National Bank PLC, Sampath Bank PLC, HSBC,
Union Bank PLC, NDB PLC, Nations Trust Bank PLC, PABC PLC |
||
FINANCIAL DETAILS
- Most
recent available Financial Information
Based
on the corporate laws of Sri Lanka, legal entities which are Private Company
with Limited Liability are 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 JANATHA STEELS is a Partnership Company incorporated on 12th March 1986 under registration number W
2639. Company has completed 25
years in hardware business.
·
Location.
The Subject
Company is located at the client # 20
Quarry Road Colombo -12, a prominent area where hardware merchants are in operation.
·
Operations
Details.
General
The subject
company primary line of business is Import,
supply & distribution of all kinds of General Hardware & Building
materials. They also manufacture Wire nails, Nail Wire, and MS Rods.
Products: Hand Tools,
Engineering tools, Hardware, Power Tools:
Tubes, Pipes,
Steel Sheets, Big Iron and Steel, Aluminium, PVC sheets, Tools, Scaffoldings
etc.
Import Countries
Taiwan, Japan, India, South Africa, Malaysia, Singapore, Russia, China,
Korea, Philippines, Indonesia, Pakistan, Ukraine, Turkey, Dubai.
Employees
Approximately
200.
·
Financial Data
The company has
declined to provide information on its finances. However, they claim to have an
annual turnover of approx. LKRs. 4 billion.
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
is said to be holding membership of the following organisations:
-
The Ceylon Hardware Merchants Association
-
National Chamber of Commerce of Sri Lanka
-
Sri Lanka China Business Co-operation Council
They also claim
to have a large clientele island wide, in the Govt. & Private Sector
Construction
Companies in Sri
Lanka.
·
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.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.