MIRA INFORM REPORT

 

 

Report Date :

23.10.2013

 

IDENTIFICATION DETAILS

 

Name :

S.S.K.HAJIAR & CO

 

 

Registered Office :

# 99, 2nd Cross Street, Colombo 11.

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

1961

 

 

Legal Form :

PROPRIETORSHIP Company (In Operation)

 

 

Line of Business :

Import & Distribution of all kinds of Textiles for Wholesale & Retail Trade.

 

 

No. of Employees :

Approx. 25

 

 

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 :

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

 

 

 

Basic information

 

a.

Name of Subject of Inquiry

:

S.S.K.HAJIAR & CO

b.

Legal Form  & Status

 

:

 

PROPRIETORSHIP Company (In Operation)

c.

 Managing Proprietor

 :

Al Haj S.M.M.M. Ibrahim (Ibrahim Hajiar)

d.

Primary Line of Business

:

Importers & Distributors Textiles

e.

Office & Place of Business

:

 

# 99, 2nd Cross Street,

 Colombo 11.

Sri Lanka

 

Tel. No: (00 94 11) 232 4226; 243 6200

Fax No: (00 94 11) 245 1594

 

 

f.

No. of  Employees

:

Approx. 25

 

 

Registration and Shareholder Details

 

a.

Registration No

:

Not Disclosed

b.

Year of Registration

:

In 1961 (Please see “History”)

c.

Registered Address

:

 

# 99, 2nd Cross Street, Colombo 11.

Sri Lanka.

 

d.

Proprietor

:

Al Haj S.M.M.M. Ibrahim (Ibrahim Hajiar)

Managing Proprietor

e.

Auditors

:

Not Disclosed

f.

Bankers

:

MCB Bank

 

 

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 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, S.S.K. HAJIAR & CO is PROPRIETORSHIP Company in operation.

 

                  Our investigator visited the client and spoke to the Manager of the

                  Subject Company and he refused to give any details. A formal letter requesting

                  company details was handed over but up to date no information received from him in

                  spite of several reminders, except the details included in this report.      

                

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. As such company registration details could not be traced.                        

                  

                  However, according to the available information the subject company has been established

                  about 50 years ago by Mr. Ibrahim, to import and  distribution of textiles, under the 

                  umbrella name “SMI GROUP”.  At present it has said have been developed to cover

                  several fields such as Textiles and Apparels, Property and Constructions, Imports and

                  Exports, Hotels and Restaurants etc. in Sri Lanka and also in India.

 

                  Following are the associate companies in the Group:- In Sri Lanka

                      -  SMI Housing Developers   

                      -  C.T.M. TRADERS   

                      -  SMI Property Developers  

                      - SMI Import and Export

                      - SKM Trading

                      - See Lanka Travels (Pvt.) LTD

 

                  In India:-

                   -  Femina Shopping Hyper Mart (Trichy)

                   -  Femina Hotel (Tiruchchirappalli)     

                   -  Colmans Garments (Pvt.) Ltd. (Trichy)

                   -  SMI Logistics Pvt. Ltd

                   -  Femina Prawn Culture   

 

·         Location.

 

     The subject is located at the client given address, # 99, 2nd Cross Street, Colombo 11, a 

      prominent business area in the city. The company is housed in a 3-storyed building  

      which is said to be owned by the company.

 

      A few photographs taken by our investigator are attached below.

 

 

             Inside shop

2013-10-17-1108

 

 

 

 

20120620(008)

 

·         Operational Details.

 

General

                  The subject company primary line of business is Import & distribution of all kinds of Textiles for wholesale and retail trade. According to the information obtained from the neighbouring people this company is about 50 years in business.

 

Products

 Textiles – Curtain materials, fabrics, sarongs (“Hero” Brand) etc.

                       

·         Import & Countries

India, Indonesia, Thailand, China, Turkey.

 

No of Employees

                  Approx. 25

 

·         Financial Data

 

The company has declined to provide information on its finances.

 

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

                 Limited Liability are not required to make public disclosure of their annual financials. 

                 Therefore no financials are available for this entity

 

 

·         Trade references

 

                  The subject company declined to provide any trade references

 

 

 

 

·         Credit Recommendations

 

                  Since no financial or any other company 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.61.78

UK Pound

1

Rs.99.65

Euro

1

Rs.84.48

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.