MIRA INFORM REPORT

 

 

Report Date :

27.12.2014

 

IDENTIFICATION DETAILS

 

Name :

TESCO

 

 

Registered Office :

#5 Hubert Place, Colombo-05

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

Not Available 

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Proprietorship Concern

 

 

Line of Business :

Engaged in Import and Distribution (Wholesale) of Food Items such as                   Potatoes, Onions, Chillies & Lentils.        

 

 

No of Employees :

10 (Approximately)

 

 

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 (LTTE). 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. 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

       

Name of Subject of Inquiry

:

TESCO

Legal Form  & Status

:

Proprietorship Concern (In Operation)

Proprietor

:

Jayatissa Herath

Primary Line of Business

:

Engaged in Import and Distribution (Wholesale) of Food Items such as  Potatoes, Onions, Chillies & Lentils.        

Place of Business

:

 

# 17A, 4th Cross Street.

Colombo-11.

Sri Lanaka

 

Mobile: (00 94 77) 365 8470- (Mr. Thulasikaran –CEO/ Manager)

 

Office & Stores

:

 

# 5, Hubert Place,

Colombo -15

 

 

No. of  Employees

:

Approx. 10

           

 

CONCERN DETAILS 

Registration and Shareholder Details

 

Registration No

:

- Not Disclosed-

Date of Registration

:

- Not Disclosed-

Registered Office

:

#5 Hubert Place, Colombo-05, Sri Lanka.

Auditors

:

Not Disclosed

 

Concern Secretaries

:

Not Applicable

 

Bankers

:

Nation Trust Bank.

 

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

Based on the corporate laws of Sri Lanka, legal entities which are Private Concern 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                      

 

·         History.

The Subject Concern TESCO is a proprietorship concern in operation. Mr. Thulasikaran, Manager was contacted and he declined to disclose registration and financial details without knowing the identity of the enquiring party.

 

                     The Proprietorship/Partnership companies are being registered at the Provincial Registrar of Companies and when the owner refuse to provide such details, it is not possible to obtain such details from the registry.

 

·         Location.

                    The Subject Concern is located at # 17A, 4th Cross Street, Colombo, one of the main business places in Colombo city. The client given location is the concern registered address, office and stores.

 

·         Operational Details.

 

General

                     The subject concern’s primary line of business is Import and Distribution (Wholesale) of food items.

 

 

                  Products

                  Potatoes, Onions, Chillies & Lentils.

                 

Import Country

India.

 

Employees

                    Approximately 10.

 

 

·         Financial Data

The concern has declined to provide information on its finances

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

 

·         General Comments

                   When we contacted the Manager of the subject concern, Mr. Thulasikaran, he was cordial but

                   declined to provide any information such as Operational & financial Information of the

                   concern. If any information is needed the suppliers could contact him directly and no    

                   Information could be provided without knowing the end user. He further said that they are

                   having long time suppliers and no need to have any more.

 However all information received from the subject is included in the report.

                

·         Trade references

                   The subject concern did not provide any trade reference referrals

 

 

·         Credit Recommendations

                    Since no financial information has been forthcoming from the concern, it is not possible to comment on the merits or otherwise of the concern.

 

No computerised data bases exist to make checks whether the partners or the concern 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 & RATING

Appraisal and Rating of Subject Concern

 

Rating:

a) Management Capability

Average

b) Market Situation

Very Competitive

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.98.98

Euro

1

Rs.77.74

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

MNL

 

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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