MIRA INFORM REPORT

 

 

Report Date :

30.10.2013

 

IDENTIFICATION DETAILS

 

Name :

JANAHITA KNITTING INDUSTRIES

 

 

Registered Office :

# 137, Main Street, Colombo 11

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

Not Available

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Proprietorship Company

 

 

Line of Business :

Import and distribution of fabrics, curtain materials and accessories and home décor.

 

 

No. of Employees :

Approx 20 (Group)

 

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

 

1) GENERAL

 

Basic information at a glance

      

a.

Name of Subject of Inquiry

:

JANAHITA KNITTING INDUSTRIES

b.

Legal Form  & Status

 

:

 

Proprietorship Company (IN OPERATION)

c.

 Managing Proprietor

 :

Anupam Nagindas

d.

Primary Line of Business

:

Import and distribution of fabrics, curtain materials and accessories and home décor

e.

Office & Places of Business

 

:

 

 

# 137, Main Street,

Colombo 11,

Sri Lanka

 

Tel. No: (00 94 11) 244 8457 / 244 8458 / 254 1198

Fax No: (00 94 11)  254 1199      

 

f.

No. of  Employees

:

Approx. 20 (Group)

                       

 

2) COMPANY DETAILS  

 

Registration and Shareholder Details

 

a.

Registration No

:

Not Disclosed. 

b.

Date of Registration

:

Not Disclosed. 

c.

Registered Address

:

 

# 137, Main Street, Colombo 11

 

d.

Proprietor

:

Anupam Nagindas

Managing Proprietor

e.

Auditors

:

Not Disclosed

f.

Bankers

:

Not Disclosed

 

 

3) 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

 

 

4) CURRENT INVESTIGATION

 

History:

 

The subject company, JANAHITA KNITTING INDUSTRIES is Proprietorship Company in operation. Company Registration details not provided by the company in spite of repeated requests made.

 

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.                         

 

Enquiries have revealed that the subject was engaged with knitting industry and it has now

been abandoned and presently engaged with home décor business as an  associate  of

 “NAGINDAS HOME DÉCOR (PVT) LTD”. The name “Nagindas” is a familiar

name in the trade circles and they were in the textile business for several decades.

          

Location.

 

The subject company is located at the client # 137, Main Street, 

Colombo 11, a business area in Colombo City.

 

 

Operational Details.

The main line of business of the subject company is Import and distribution of fabrics, curtain materials and accessories and home décor.

 

Products

                  Lace & Sheer Curtains, Pain & Printed Curtained, Handlooms, Bed Linen, Table Cloth.

Ace & Sheer Curtains

Plain & Printed Curtains

Brocades

Handlooms

Furnishing & Upholstery Fabric

Embroidered Fabrics

Jacquards

Tassels & Trimmings

Tie Backs & Accessories

Vertical & Venetian Blinds

Bed Linen, Table Cloth

                           Poles, Pelmets & Railings

   

Import & Countries

India, Pakistan, Iran

                  

No of Employees

Approx 20 (Group)

 

 

Financial Data

 

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

 

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.61.46

UK Pound

1

Rs.98.99

Euro

1

Rs.84.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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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