MIRA INFORM REPORT

 

 

Report Date :

24.12.2014

 

IDENTIFICATION DETAILS

 

Name :

R. G. BROTHERS

 

 

Registered Office :

# 103 2/1, Mahavidyalaya Mawatha, Colombo 13

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

02.11.2005

 

 

Com. Reg. No.:

WP 63712

 

 

Legal Form :

Proprietorship Company  (In Operation)

 

 

Line of Business :

Importers and Distributors of Consumer food products.

 

 

No. of Employees

20 Approximately in the permanent cadre

 

 

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, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

:

 

R. G. BROTHERS

 

b.

Legal Form  & Status

:

Proprietorship Company  (In Operation)

c.

Proprietor

:

 Ponnampalam Ramanathan

d.

Primary Line of Business

:

Importers and Distributors of Consumer food products.

e.

 

Head Office

 

:

 

# 103 2/1, Mahavidyalaya Mawatha, Colombo 13,

Sri Lanka

  

Mobile No: (00 94 77) 768 4067 - Mr. P. Ramanathan

 

Tel No: (00 94 11) 238 2572; 436 2541

Fax No: (00 94 11) 242 4062

Email: rg@hotmail.com

             rgbrotherslk@hotmail.com   

 

f.

Sales Office

:

# 81, 5th Cross Street, Colombo 11, Sri Lanka

:

# 151, 04th Cross Street, Colombo 11, Sri Lanka

:

# 78, 04th Cross Street, Colombo 11, Sri Lanka

g.

No. of Employees

:

20 Approximately in the permanent cadre

 

 

COMPANY DETAILS  - Registration and Shareholder Details

 

a.

Registration No

:

WP 63712

b.

Date of Registration

:

02nd November 2005

c.

Registered Office

:

 

 # 103, 2/1, Maha Vidyalaya Mawatha, Colombo 13, Sri Lanka

 

d.

Auditors

:

Joseph & Company

e.

Company Secretaries

:

Not Applicable

f.

Bankers

:

Sampath Bank, Hatton National bank; MCB Bank

Pan Asia Banking Corporation PLC

 

 

FINANCIAL DETAILS - Most recent available Financial Information

 

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.

 

 

CURRENT INVESTIGATION                      

                                  New Picture (1)

 

History.

The Subject Company R. G. BROTHERS is a Proprietorship Company incorporated on         02nd November 2005 under registration no. WP 63712.

 

The Proprietorship/Partnership Companies are registered at the Provincial Registrar of Companies

 

Location.

The subject company is located at client # 103 2/1, Maha Vidyalaya Mawatha, Colombo 13, Sri Lanka,

                 

                  The Sales Offices are located at:

# 151, 04th Cross Street, Colombo 11, Sri Lanka, # 78, 04th Cross Street, Colombo 11,                                  and Sri Lanka, # 81, 5th Cross Street, Colombo 11, Sri Lanka, the main business area in

The city.

 

 

Operational Details

 

General

The subject company’ primary line of business is an Import and Wholesale/retail Distributors of consumer durables. Their business places are situated in the busiest business place in the city of Colombo where all types of general merchants are operating.

 

Products

Chickpeas, Chillies, Lentils, VSP, Canned Fish, Canned Dhal, Mustard, Garlic, Etc…

 

Importing Countries

India, Malaysia, Thailand, Singapore, China, Canada, USA, Turkey, Australia etc…

 

No of Employees

Approximately 20 in the permanent cadre and casual labour is used for loading and unloading

of shipments and other services which is approx.20 -50.

 

 

 

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/Proprietorship/Partnership is not required to make public disclosure of their annual financials. Therefore no Financials are available for this entity.

 

           

Trade references

 

The Ceylon Chamber of Commerce

 

 

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.

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FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.45

UK Pound

1

Rs.98.88

Euro

1

Rs.77.62

                

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

               

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.