MIRA INFORM REPORT

 

 

Report Date :

30.08.2014

 

IDENTIFICATION DETAILS

 

Name :

ROTEX STEEL COMPANY

 

 

Registered Office :

# 142, Maha Vidyalaya Mawatha,  Colombo 13.

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

Not Available

 

 

Legal Form :

Partnership Company 

 

 

Line of Business :

Importers, Stockists , Dealers & Distributors of  Hardware

 

 

No. of Employees

05

 

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 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

 

 

 

Company name and address

 

a.

Name of Subject of Inquiry

:

ROTEX STEEL COMPANY

b.

Legal Form  & Status

:

Partnership Company  (In Operation)

c.

Managing Partner

:

K. Murugiah

d.

Primary Line of Business

:

Importers, Stockists , Dealers & Distributors of  Hardware

e.

Office & Place of Business

 

:

 

# 142, Maha Vidyalaya Mawatha,

Colombo 13.

Sri Lanka

            

Tel No:       (00 94 11) 244 0749, 243 0659, 244 9822

Tel/Fax No:(00 94 11) 245 1705

Email:  rotexsteelcompany@gmail.com

             

f.

No. of Employees

:

Approx. 05

           

 

COMPANY DETAILS 

 

Registration and Shareholder Details

 

a.

Registration No

:

Not disclosed

b.

Date of Registration

:

Not disclosed

c.

Registered Office

:

# 142, Maha Vidyalaya Mawatha, Colombo 13. Sri Lanka

d.

 Partners

:

K. Murugiah

Managing      Partner

Details of  other partners not disclosed

        -

e.

Auditors

:

Not Disclosed

f.

Bankers

:

Not Disclosed

 

 

CURRENT INVESTIGATION

 

HISTORY:

 

The Subject Company ROTEX STEEL COMPANY is a Partnership company in operation as General Merchants of importing & distribution of hardware.

The Managing Partner of the subject company was contacted and refused to provide details of partners and company registration etc. up to now. They refused to give even the names of partners.

 

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 to verify same.

 

 Location:

 

The subject company is located at the client # 142 Maha Vidyalaya Mawatha, Colombo 13, which is a premier Hardware business area in the Colombo city.

 

 

OPERATIONAL DETAILS

 

General:

 

The subject company’ primary line of business is Importing and distribution of all kinds of hardware/ steel tubes items.

 

Products:

M.S. Angle Iron / Plates,  BI sheets, Aluminium sheets, deformed bars, M.S. flats, GI pipes, channel iron, Stainless steel sheets,  hollow tubes, rectangle tubes, electric welding rods, TOR Steel, hoop iron, Jumper Steel , MS lipped channels Etc.

 

Visual of an Ad published

 

 

 

Importing Countries:

India, China, Pakistan

 

 

Employees:

Details refused.   Our investigators have seen about 05 people working inside the shop.

 

 

Financial Data

 

 The Company has refused to provide information on its Finances and also operational details.         

 

Based on the corporate laws of Sri Lanka, legal entities which are Private Company with   Limited Liability/Proprietorship/Partnership is 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 promoters 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 denied by

 

NAME

Mr. Murugiah

DESIGNATION

Partner

CONTACT

00094112440749

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.48

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

 

INFORMATION DETAILS

 

Information Gathered by :

GYR

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

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.