MIRA INFORM REPORT

 

 

Report Date :

22.08.2014

 

IDENTIFICATION DETAILS

 

Name :

LANKA LEATHER FASHION (PVT) LTD

 

 

Registered Office :

Ring Road-1, I.P.Z, Katunayake

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

25.11.1981

 

 

Com. Reg. No.:

PV 1872

 

 

Legal Form :

Private Limited Liability Company  (In Operation)

 

 

Line of Business :

Manufacture, Exporter and Distributor of all Kinds of Leather Items

 

 

No. of Employees :

Not Available

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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 2012-13. 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

 

 

GENERAL

 

Basic information at a glance

     

a.

Name of Subject of Inquiry

:

LANKA LEATHER FASHION (PVT) LTD

 

b.

Legal Form  & Status

:

Private Limited Liability Company  (In Operation)

c.

Chairman

:

Herbert Weidemann (Netherland)

d.

Primary Line of Business

:

Manufacture, Exporter and Distributor All Kinds of Leather Items

e.

Head office

&

Place of Business

 

:

 

Ring Road1,I. P. Z,

Katunayake,

Sri Lanka.

 

Tel. No: (00 94 11) 225 6694/ 225 2035/ 483 3305/ 483 3306

Fax No: (00 94 11) 225 2034

 

 

f.

No. of Employees

:

Not Disclosed

 

 

COMPANY DETAILS 

 

Registration and Shareholder Details

 

a.

Registration No

:

PVS 7981                               

Date of Registration

 

25th November  1981

b.

Re-registration No

:

 PV 1872

Date of Re-registration

 

08th January 2008

c.

Registered Office

:

Ring Road-1, I.P.Z, Katunayake, Sri Lanka.

d.

Board of Directors

As at

14th October 2013

:

Herbert Weidemann (Netherland)

Chairman

Christl Weidemann ( Deutsche)

Managing Director

Duncan Fraser (British)

Director

Marco Weidemann ( Deutsche)

Director

e.

Issued Share Capital

:

Rs.  1,500,000.00

f.

Nominal Value of Share

:

Rs.            100.00  (Total No. of Shares – 15,000)

g.

 

Share Holders

As at

 14th October 2013

:

Share Holders

No. of

Shares

Chelliah Thangarajan

01

Alamea Corp., (Seychelles)

14,998

Raoul Widmer (Germany)

01

h.

Auditors

:

K P M G

i.

Company Secretaries

:

P W Corporate Secretarial (Pvt) Ltd

j.

Bankers

:

Not Disclosed

 

Directors’ Details

01)

Name

Herbert Weidemann

ID Number

Nlt 1527302

Nationality

Netherland

Address

No 02, Sea Road, Negombo

 

02)

Name

Christl Weidemann

ID Number

3335010135

Nationality

Deutsche

Address

No 02, Sea Road, Negombo

 

03)

Name

Duncan Fraser

ID Number

740185047

Age

British

Address

No 19, Queens Road, Colombo 03.

 

04)

Name

Marco Weidemann

ID Number

333501202

Nationality

Deutsche

Address

30 /52 A, Longton Place , Colombo 07

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

THE COMPANY HAS DECLINED TO PROVIDE INFORMATION ON ITS FINANCES

                                                                       

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

 

 

Current investigation

 

History

 

The Subject Company LANKA LEATHER FASHION (PVT) LTD is a Private Limited   Liability Company incorporated on 25th November 1981 under Registration No. PVS 7981 and subsequently re-registered under Companies Act # 7 of 2007 on 8th January 2008 under Reg. No. PV 1872.

                  

Subject is a Board of Investment (BOI) approved company.

 

Location.

 

The Subject Company is located at the client Ring Road1, I.P.Z, Katunayake, Sri Lanka.

 

Operational Details.

 

General

 

The subject company primary line of business is Manufacture, Exporter and Distributor All Kinds of Leather Items.

 

Products

Leather Products

 

Country

German, Europe Countries and Western Countries.

 

Employees

Not Disclosed

 

Financial Data

The company has declined to provide information on its finances

 

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

 

Trade references

The subject company did not provide any trade reference referrals

                 

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.60.76

UK Pound

1

Rs.100.72

Euro

1

Rs.80.55

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.