MIRA INFORM REPORT
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Report Date : |
02.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
CITY TRADING COMPANY |
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Registered Office : |
# 38, 3rd Cross Street, Colombo 11 |
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Country : |
Sri Lanka |
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Date of Incorporation : |
1970 |
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Legal Form : |
Proprietorship Company |
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Line of Business : |
Import, Distribution & Trading - General Hardware, Paints,
Electrical Accessories/ Appliances |
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No. of Employees : |
Approx. 50 (Group over 500) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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. 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. 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, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets.
|
Source
: CIA |
GENERAL
Basic information
at a glance
|
a. |
Name of Subject of Inquiry |
: |
CITY TRADING
COMPANY |
|
b. |
Legal Form & Status |
: |
Proprietorship
Company |
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c. |
Proprietor |
: |
A.W.M. Makeen |
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d. |
Primary Line of Business |
: |
Import, Distribution
&Trading - General Hardware, Paints, Electrical Accessories/ Appliances |
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e. |
Office & Places of Business |
: |
# 38, 3rd
Cross Street, Colombo 11. Sri Lanka. Hotline: (00 94
77) 7 800 330 Tel. No: (00 94 11)
234 5890-91; 232 5210; Fax No: (00 94
11) 259 3151 Contact
Person: Mr. Zulficar, Manager |
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f. |
No. of Employees |
: |
Approx. 50
(Group over 500) |
COMPANY
DETAILS
Registration and
Shareholder Details
|
a. |
Registration No |
: |
Not disclosed |
|
b. |
Date of Registration |
: |
Established in
1970 |
|
c. |
Registered Office |
: |
# 38, 3rd
Cross Street, Colombo 11. Sri
Lanka |
|
d. |
Proprietor |
: |
A.W.M. Makeen |
|
e. |
Auditors |
: |
Sunil
Piyawardena Associates |
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f. |
Bankers |
: |
Seylan Bank,
Sampath Bank |
CURRENT
INVESTIGATION
HISTORY:
Company Logo
The subject company CITY TRADING
COMPANY is a proprietorship Company and a member of the “MACKSONS HOLDINGS” which is a well
known business conglomerate manufacturing “Multilac”
brand paints. The subject company is a wholesale outlet of Macksons Paints.
City Trading Company has been established in Sri Lanka in
1970 and says that from its inception was purely concentrating on trading
General Hardware, Agricultural Tools and Implements, Hand Tools, Power Tools,
Electrical Accessories, Electrical Appliances and Electronics, Plumbing and
Sanitary wares, Daily Use Articles and Giftware, Bicycles and Spares, Tool
Sets, Paints etc.
The company claims that their main imports are from China and last 10
years they have also begun promoting merchandises from countries like India,
Malaysia, Indonesia, Thailand, Japan, and Taiwan and also from Europe.
When contacted the Manager, Mr. Zulficar, he provided some details of
the company but declined to provide company registration details. Subject
Company being a proprietorship company is registered at the Provincial
Registrar of Companies, Colombo and therefore registration details are not
available.
(Note: 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 for
verification.)
Subject is a
member of the “MACKSONS HOLDINGS” which is having the following companies under
its umbrella:
Macksons Paints
Lanka (PVT) Ltd
Macksons
Industries (PVT) Ltd
Mans Lanka (PVT)
Ltd
Mack Marketing
(PVT) Ltd
Shimmzi Plastics
(PVT) Ltd
House of Gifts
Group Chairman is Al Haj A.W.M. Makeen.
LOCATION
The subject company is located at the client # # 38, 3rd Cross Street, Colombo 11, which is most
prominent business area in the city of Colombo.
OPRATIONAL
DETAILS
General
City Trading Company specialises in wholesale distribution in the city
by supplying general hardware products, paints and tiles. It is a well known
icon in the wholesale sector.
The subject company primary line of business is trading General
Hardware, Agricultural Tools and Implements, Hand Tools, Power Tools,
Electrical Accessories, Electrical Appliances and Electronics, Plumbing and
Sanitary wares, Daily Use Articles and Giftware, Bicycles and Spares, Tool
Sets, Paints etc.
Manager of the
subject company is Mr. Zulficar.
Products:
General
Hard ware:
Bolts Brass Wood Screws - CSK
Heads Chains Copper
Tubes Hooks Hinges Iron/Wood
Screws Locks Nails Pulls and
Brackets Ropes Mesh Plastic
Hose and Hose Clips Castor Wheels Scales Paint
Brushes Glues Well Pulley Wheel
Borrows Plywood Fibre Boards Sand
Papers Aluminium Blind Rivets Rat
Trap Rubber Roller
Agricultural Tools and Implements:
Agricultural
Implements Water Pumps
Hand
tools:
Tool Sets / Screw Driver Sets Bench vice Tools Measuring
Tapes/Levels Screw Drivers Files All Type of Pliers and
Clippers Hammers All other type of
tools All Drills All
Trowels All types of Saws All type of
Wrenches Other (All Other Hand Tools) Tiles
Cutter
Power
Tools and Equipments:
Air Compressors Welding
Transformer Power Tools
Electrical
Accessories:
Accessories, Wire Cables, Energy
Saving Lamps, Christmas
Light, Batteries, Circuit
Breakers, Fluorescent Lamps and
Fitting, Halogen Lamp, Bulbs, Electric
Meter
Household
Electrical Appliances and Electronics:
Electrical Irons (Iron Boxes) TV -
Television LCD Watches and
Calculators Fans Electrical
Kettles Rice Cooker Sandwich
Toaster
Plumbing
and Sanitary wares:
Taps (All type of Taps) Valves Bathroom
Accessories Thread Seal Tape
Bicycles
& Spares:
Wheel
Reflector Tricycles Horns Baby
Walkers Baby
Strollers Spokes Seats Bicycles Pumps Steel
Balls Bells Chains Chains
Wheels and Crank Fork Free
Wheel Rims Hubs Gear
Case Stand Pedals Mud
Guards Wire Locks Frame
Locks Luggage Carrier Back
Mirror Brake
shoes Bottles Baskets Bicycles
Lamps and Light
Set B.B.Cups B.B.Axle Handles
Grips Crank Cotter Pin
Architectural Aluminium Products:
Aluminium Composite Panels
Some of the Products
Importing
Countries:
China, India, Malaysia, Indonesia, Thailand, Japan, and Taiwan and also
from Europe.
No
of Employees
Approximately 50 (Group over 500)
Some visuals of the company
Financial Data
The company has declined to provide any
financial information without the identity of the end user.
Based on the
corporate laws of Sri Lanka, legal entities which are Private Company with
Limited Liability/partnerships/proprietorships are not required to make public
disclosure of their annual financials. Therefore no financials are available
for this entity
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.60.10 |
|
|
1 |
Rs.99.85 |
|
Euro |
1 |
Rs.82.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.