MIRA INFORM REPORT

 

 

Report Date :

02.08.2014

 

IDENTIFICATION DETAILS

 

Name :
DYECHEM

 

 

Registered Office :

# 24, China Street, Colombo 11

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

13.10.1986

 

 

Com. Reg. No.:

WA 75084

 

 

Legal Form :

Partnership Company [In Operation]

 

 

Line of Business :

Trader and Importer of Textile Dyes.

 

 

No. of Employees :

21

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

:
DYECHEM

 

 

 

 

b.

Legal Form  & Status

:

Partnership Company  (In Operation)

 

 

 

 

c.

Managing Partner

:

Mr. Letchuman Nathan

 

 

 

 

d.

Primary Line of Business

:

Importer & Supplier of Textile Dyes

 

 

 

 

e.

Head Office & Places of Business

:

# 24, China Street, Colombo 11, Sri Lanka.

 

Tel. No: (00 94 11) 234 2912 / 233 3092

Fax No: (00 94 11) 243 7611

 

E Mail: dyechem@sltnet.lk

 

Branch:

 

# 212, Bankshall Street, Colombo 11.

 

f.

Employees

:

Approx. 21

 

 

COMPANY DETAILS  - Registration and Shareholder Details

 

a.

 

Registration No

:

W 13212

Date of Registration

:

13th October 1986

b.

Re-Registration No

:

 

WA 75084

Re-Registration Date

:

24th September. 2007

c.

Registered Address

:

#212, Bankshall Street, Colombo 11.

 

 

 

 

 

d.

Partners

:

Mr. Letchumn Nadan

 

Managing  Partner

 

 

 

Mrs. Nadan Suppuletchami

 

Partner

e

Auditors

:

BDO Partners

 

 

 

 

f.

Bankers

:

Bank of Ceylon, Pettah Branch, Colombo 11.

 

g.

Imports

:

Products: Textile Dyes

Country:

·         India

·         China

·         Taiwan

·         Korea

h.

Trading Terms

:

Purchasing Terms: Cash and Cheque

Selling Terms: Cash and Cheque

 

FINANCIAL DETAILS - Most recent available Financial Information

 

Subject declined to provide details without knowing the end user of the enquiry.

 

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 DYECHEM was originally incorporated as Proprietorship Company in 13th October 1986 as SREE CHEMAUX LINKS under Registration Number W 13212 and converted into a Partnership and also changed its name to DYECHEM in 8thOctober 2004. Subject has been re-registered on 18th September, 2007 under Number WA 75084 in terms of Companies Act. # 7 of 2007.

 

Mr. Nathan, the Managing Partner of the subject company responded to our inquiries and provided limited background information but however declined to disclose any financial information of the company.  Most of the information is as provided by the subject of inquiry.

 

The subject company did not provide any trade reference referrals either.

 

LOCATION:

 

The subject company is located at the client given address # 24, China Street, Colombo 11, one of the main business centres in Colombo. The location is a two-storey building and ground floor is a showroom & store and upstairs was an office of the Subject Company.

 

Another Branch of the company is in operation at #212, Bankshall Street, Colombo 11.

       

OPERATIONAL DETAILS:

 

 The primary line of business of the subject company is import and distribution of all kinds of Textiles Dyes for industries.

 

PRODUCTS

 

Textile Dyes

 

IMPORT & COUNTRIES

 

India, China, Taiwan, Korea

 

NO OF EMPLOYEES

 

21 employees

 

 

FINANCIAL DATA

 

Subject declined to provide detailed financials without knowing the end user of the enquiry

 

Based on the corporate laws of Sri Lanka, legal entities which are Private Companies with Limited Liability/Partnership/Proprietorship are not required to make public disclosure of  their annual financials. Therefore no financials are available for this entity

 

Particulars

 

31.03.2014

Sales Turnover [Approximately]

110.000

 

 

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.

 

It should be noted that the particular industry segment the company is involved has tremendous growth potential and as such it can be expected for the company to expect excellent growth prospects.

 

No computerized 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

 

 

INFORMATION PARTED BY

 

Name :

Mr. Letchumn Nathan

Designation :

Partner

Contact No.:

0094-777591107

Date :

31.07.2014

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.85

UK Pound

1

Rs.102.69

Euro

1

Rs.81.46

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

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.