MIRA INFORM REPORT

 

 

Report Date :

18.06.2013

 

IDENTIFICATION DETAILS

 

Name :

RELAXS STEEL

 

 

Registered Office :

# 311, Old Moor Street, Colombo -12

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

Not Available

 

 

Legal Form :

Proprietorship Company (in operation)

 

 

Line of Business :

Importers and General Hardware Merchants and Suppliers

 

 

No. of Employees :

Approx.20

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

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 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

       

a.

Name of Subject of Inquiry

:

 

RELAXS STEEL

 

b.

Legal Form  & Status

:

Proprietorship Company (in operation)

c.

Managing Proprietor

 :

Vijayakumar

d.

Primary Line of Business

:

Importers and General Hardware Merchants and Suppliers

e.

Office & Places of Business &

:

 

 # 311, Old Moor Street,

Colombo- 12

Sri Lanka

 

Tel. No: (00 94 11) 462 8462, 247 8380, 243 8308

Fax No: (00 94 11) 233 5653

 

E Mail: relax_steel@yahoo.com

 

New Shop

# 449, Old Moor Street,

Colombo 12.

 

f.

No. of  Employees

:

Approx.20

           

 

COMPANY DETAILS 

- Registration and Shareholder Details

 

a.

Registration No

:

Not Disclosed

b.

Date of Registration

:

Not Disclosed

c.

Registered Office

:

# 311, Old Moor Street, Colombo -12.

e.

Proprietor

:

Vijayakumar

Managing Proprietor

f.

Auditors

:

Not Disclosed

g.

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 Partnerships/Sole Proprietorship are not required to make public disclosure of their annual financials. Therefore no financials are available for this entity.

 

 

CURRENT INVESTIGATION

                                                                                                           

·         History.

 

 The Subject Company RELAXS STEEL is Proprietorship Company, in operation.

 When  company was contacted, declined to provide registration and operational details without any identity of the enquired party.

 

The Proprietorship/Partnership Companies are registered at the Provincial Registrar of Companies and as the management declined to provide registration details it is not possible to trace company details at the Registrar’s office.                         

 

Location.

 

The Subject Company is located at the client given address # 311, Old Moor Street, Colombo -12, a prominent area where hardware merchants are in operation. Subject also hving another shop at #449, Old Moor Street, Colombo 12, closer to the former.

 

·         Operations Details.

 

General

The subject company primary line of business is Import, supply & distribution of all kinds of General Hardware & Building materials.

 

Products:

All kinds of hardware items such as:

Tubes, Pipes, Steel Sheets,   Steel, Aluminium and PVC sheets, Tools, Scaffoldings etc.

 

Import Countries

 India, China, Pakistan

 

Employees

                  Approx. 20

 

·         Financial Data

                  Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited       

                  Liability/ Partnerships/Sole Proprietorship 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 organisation

-          The Ceylon Hardware Merchants Association

 

·         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.57.73

UK Pound

1

Rs.90.61

Euro

1

Rs.76.96

 

 

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%)

 

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.