MIRA INFORM REPORT

 

 

Report Date :

25.04.2014

 

IDENTIFICATION DETAILS

 

Name :

LAL & SONS

 

 

Registered Office :

# 05, Kothalawela Place, Colombo 04.

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

Not Available

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Proprietorship Company

 

 

Line of Business :

Indenting and Commission Agents

 

 

No of Employees :

02

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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

:

LAL & SONS

b.

Legal Form  & Status

:

Proprietorship Company

c.

Proprietor

:

Sornal

d.

Primary Line of Business

:

Indenting and Commission Agents

e

Place of Business

 

:

 

# 05, Kothalawela Place,

Colombo 04.

Sri Lanka.

 

Tel. No: (00 94 11) 250 8144

 Mobile: (00 94 77) 7 566 146           

 

f.

No. of  Employees

:

Not disclosed

          

 

COMPANY DETAILS       - Registration and Shareholder Details

 

a

Registration No

:

- Not Disclosed-

b

Date of Registration

:

- Not Disclosed-

c

Registered Office

:

# 05, Kothalawela Place, Colombo 04.  Sri Lanka

d

Auditors

:

Not Available

e

Company Secretaries

:

Not Applicable

 

 

 

:

Not Available

f.    Bankers

 

 

 

 

CURRENT INVESTIGATION                      

 

·         History.

 

               The subject company LAL & SONS is a Proprietorship Company.

        

Our Investigators visited the client # 05, Kothalawela Place, Colombo 04, which is a residential house and it is being used as the office.

All information included in this report is obtained from the subject company. Since the subject is an Indenting & commission agency and the owner does not wish to divulge the operational and financial details, for reasons best known to him and also the entity is not a public one, no other avenue to ascertain more details other than what the owner has to say.

 

                  Note:

                  The Proprietorship/Partnership companies are being registered at the Provincial Registrar of Companies and when the owner/partner refuses to provide company details and /or not available for contact, it is not possible to extract such details from the Provincial Registry and also to verify the accuracy of the details.

 

 

·         Location.

 

                  The client given address # 05, Kothalawela Place, Colombo 04, we were told that is the registered address and residential house of the owner of the subject company and also been used as the office.

 

·         Operational Details.

 

General

                  The primary line of the subject company is Indenting and Commission Agent for his clients who are traders and shoppers. Indented products are said to be various kinds of food items,

 

                

Employees

                   Approx 02

 

 

·         Financial Data

 

The information on its finances is not provided by the subject due to non availability of the identity of the end user of the enquiry.

 

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

 

 

·         Credit Recommendations

 

                  Since no 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.

 

 

ANALYSIS - Appraisal of Subject Company

 

  

Rating:

a) Business Scale        

NA

b) Business Trend

NA

c) Management Capability

NA

d) Commercial Morality

NA

e) Reputation

 

NA

f) Market Situation

NA

                                   

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 61.06

UK Pound

1

Rs. 102.76

Euro

1

Rs. 84.48

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.