MIRA
INFORM REPORT
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Report Date : |
13.08.2014 |
IDENTIFICATION DETAILS
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Name : |
B.G.N. RUBBER FACTORY |
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Registered Office : |
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Country : |
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Year of Establishment : |
2003 |
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Legal Form : |
Proprietorship Company |
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Line of Business : |
Manufacture and Distribution of Natural Sri Lankan Rubber Products & Trading |
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No of Employees : |
Approx. 50 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – June 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
GENERAL - Basic information at a glance
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a. |
Name of Subject of Inquiry |
: |
B G N RUBBER
FACTORY |
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b. |
Legal Form & Status |
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Proprietorship Company (In Operation) |
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c. |
Managing Partner |
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Mr. B.G. Nandana |
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d. |
Primary Line of Business |
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Manufacture and
Distribution of Natural Sri Lankan Rubber
Products & Trading |
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e. |
Head Office & Places of Business &
Factory |
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# 02, Temple Road, Miriyagalla, Sri
Lanka. Tel.
No: (00 94 11) 283 0241 Fax
No: (00 94 11) 283 0241 Mobile: (00 94 77) 367 0766
(Mr. Nandana) E Mail:
bgnandana@sltnet.lk |
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f. |
Employees |
: |
Approx.
50 |
COMPANY DETAILS - Registration and Shareholder Details
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Registration No |
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Not Disclosed |
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b. |
Registration Date |
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2003 |
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c. |
Registered Address |
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# 02, Temple Road, Miriyagalla, Padukka,
Sri Lanka |
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d. |
Proprietor |
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Mr. B.G. Nandana |
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Managing
Proprietor |
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e |
Auditors |
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Not Disclosed |
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f. |
Bankers |
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Bank of Ceylon, Padukka Branch |
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g. |
Customers |
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Wholesalers, Retailers |
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h. |
Terms |
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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 B.G.N. RUBBER FACTORY is Proprietorship Company in operation.
Mr. Nandana the Managing Proprietor of the subject company responded to our inquiries and provided limited background information but however declined to disclose any financial information of the company, without knowing the end user of the enquiry.
Note:
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.
·
Location.
The subject company
is located at the client # 02, Temple Road, Miriyagalla, Padukka, an
agricultural area (Rubber growing) approx. 30 kilo meters south-east of Colombo
city.
The premise is having the rubber manufacturing plant and the office.
Operational Details.
The primary line of business of the subject company is manufacture and distribution of Natural Rubber Products for export and local markets under the brand name “BGN”.
·
Products
TSR-20
technically specified rubber
RSS-1- 5 Ribbed
smoked rubber sheets
Skim Rubber
Crepe Rubber
TSR-20
( Technically Specified Rubber)
Produce TSR-20 as rectangle blocks (35cm height x 30cm width) for both
local and export market. Each block is
covered with 01mm polythene sheet for
protection. Blocks of TSR-20 could be shipped in wooden
pallets or in loose form. They have the capacity to supply 500MT per
month.
RSS-5
( Ribbed Smoked Sheets)
RSS – 5 is produced as rectangle sheets with the size of 35cm height, 30cm width and 3mm thickness (approximately). Sheets are bundled in kilograms as per client’s requirement and each bundle is covered with 01mm polythene for protection. They could be shipped in wooden pallets or as loose bundles and have the capacity to supply 300MT per month.
Skim
Rubber
Skim Rubber is produced as rectangle sheets with the size of
35cm height, 30cm width and 3mm thickness (approximately). Sheets are bundled
in kilograms as per client’s requirement and each bundle is covered with 01mm
polythene. They could be shipped in wooden pallets or as loose bundles. Have
the capacity to supply 300MT per month.
Crape
Rubber
Crape Rubber is produced as rectangle sheets with the size of
35cm height, 30cm width and 3mm thickness (approximately) or square sheets with
the size of 30cm height, 30cm width and 3mm thickness (approximately). Sheets
are bundled in kilograms as per client’s requirement and each bundle is covered
with 01mm polythene. They could be shipped in wooden pallets or as loose
bundles. They have the capacity to supply 300MT per month
·
Export & Countries
India, China, UK,
Pakistan
No of Employees
Approx.50 employees
·
Financial Data
Subject declined to
provide details without knowing the end user of the enquiry
However, they have stated that their production capacity for a month is approx. 2,000 mt of natural Sri Lankan rubber products with an annual revenue of approx. USD. 100,000/-
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
·
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 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
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Rating: |
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a) Business Scale |
Small/Medium |
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b) Business Trend |
Growing |
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c) Management Capability |
Average |
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d) Commercial Morality |
Average |
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e) Reputation |
Average |
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f) Market Situation |
Competitive |
INFORMATION PARTED BY
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Name : |
Mr. B G Nandana |
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Designation : |
Proprietor |
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Contact No.: |
91-94773670766 |
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Date : |
13.08.2014 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 61.18 |
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1 |
Rs. 102.55 |
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Euro |
1 |
Rs. 81.77 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
DPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.