MIRA INFORM REPORT

Report Date :

17.02.2014

IDENTIFICATION DETAILS

Name :	LOADSTAR (PVT) LIMITED

Registered Office :	Regent’s Court, # 218, Minuwangoda Road, Ekala, Ja-ela

Country :	Sri Lanka

Date of Incorporation :	02.10.1984

Com. Reg. No.:	PV 3541

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturers, Exporters & Dealers of Solid rubber tyres, Pneumatic Tyres, Rims, Tracks

No of Employees :	Approximately 7,000

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	No Complaints

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 – december 01, 2013

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Sri Lanka

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

a.	Name of Subject of Inquiry	:	LOADSTAR (PVT) LIMITED
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Chairman	:	Tissaweera Nihal Jinsena
d.	Primary Line of Business	:	Manufacturers, Exporters & Dealers of Solid rubber tyres, Pneumatic Tyres, Rims, Tracks
f.	Head Office & Factory	:	No.2, Agaradaguru Mawatha, Ekala, Ja-Ela Tel. No: (00 94 11) 223 2349 / 223 6566 / 483 7900/ 483 2760 Fax No: (00 94 11) 223 2344 / 223 1750 Email: keerthi.bandara@loadstarlk.com
			Opatha, Katugoda Tel. No: (00 94 11) 229 6753 / 229 6751 - 2 Fax No: (00 94 11) 229 6754
			No.218, Jinasena Industrial Park, Minuwangoda Road, Ekala, Ja-Ela Tel. No: (00 94 11) 223 1802 / 223 2349 Fax No: (00 94 11) 223 2177 E-mail : info@loadstarlk.com
			No.423/b, Puwakpitiya Central Main Street, Puwakpitiya Tel. No: (00 94 11) 223 2726
g.	No. of Employees	:	Approximately 7,000

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No	:	N (PVS) 1368
	Date of Registration	:	02^nd October 1984
b.	Re-registration No	:	PV 3541
	Date of Re-registration	:	30th April 2008
c.	Registered Office	:	Regent’s Court, # 218, Minuwangoda Road, Ekala, Ja-ela
d.	Board of Directors As At 06^th February 2013	:	Dr. T. Nihal Jinsena		Chairman
			Pierre Pringiers (Belgium)		Vice Chairman
			T. Sriyan Jinsena		Director
			Pierre Marcouiller		Director
			Pierre Paul Riopel		Director
			Luc Janelle		Director
e.	Auditors	:	Ernst And Young
f.	Company Secretaries	:	S S P Corporate Services (Pvt) Limited
g.	Bankers	:	Stranded Charted Bank Limited, Citi Bank, Bank of Ceylon, Hatton National Bank, HSBC, Commercial Bank
h.	Total No. of Issued Shares	:	376,690,000
	Total Value of Shares	:	Rs. 4,319,763,800.00
i.	Nominal Value of Share	:	Not applicable vide Companies Act #7 of 2007
j.	Share Holders As At 06^th February 2013	:	Share Holders	No. of Shares
			M/S Solideal Ltd (Incorporated in Hong Kong)	376,690,000

FINANCIAL DETAILS

Most recent available Financial Information

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

Company Logo

· History.

The Subject Company is LOADSTAR (PVT) LIMITED is a Private Limited Liability Company incorporated on 02^nd October 1984 under registration number N (PVS) 1368 and re-registered in terms of Companies` Act # 7 of 2007 on 30th April 2008 under registration number PV 3541.

· Location.

The Subject Company is located at the client, Regent Court, 218, Minuwangoda Road, Ekala, Ja-Ela, approx. 20 kilo meters north of Colombo City.

· Operational Details.

General

The subject company primary line of business is Manufacture, Export & Distribution of Solid rubber tyres, Pneumatic Tyres, Rims, Tracks.

Loadstar (Pvt) Ltd, a member company of the Jinasena Group and they winning the three NCE

Awards – Most Outstanding Exporter of Sri Lanka, Industrial Sector Extra Large; Most

Outstanding Exporter, Industry and the Most Outstanding Exporter, overall

The subject company has earned ISO 9001: 2000 and ISO 14001: 2001 and they products are marketed in 120 locations in 60 countries world over

Products

1. Solid Rubber Tyres

2. Pneumatic Tyres

3. Rims

4. Tracks

Brand Name

“Solideal”

Export Countries

Europe, USA and India

No of Employees

Approximately 7,000

Directors’ details

Name	Dr. T. Nihal Jinsena
ID Number	401952403 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	13th July 1940
Age	73 Years
Address	No.9, Gampaha Road, Ekala, Ja-Ela

Name	T. Sriyan Jinsena
ID Number	482563074 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	12th September 1948
Age	65 Years
Address	No.57, Lake Crescent, Colombo - 02

Name	Pierre Pringiers
ID or PP Number	EF 076355
Nationality	Belgium

Name	Pierre Marcouiller
ID or PP Number	BA 295549
Nationality	Canadian

Name	Pierre Paul Riopel
ID or PP Number	BA 401134
Nationality	Canadian

Name	Luc Janelle
ID or PP Number	QA 374671
Nationality	Canadian

Financial Data

The company has declined to provide information on its finances

Further, In Sri Lanka, Private Companies do not publish their Accounts for Public use other than the Shareholders

Trade references

The subject company provided the following trade references:

Board of Investment, Sri Lanka

Sri Lanka Export Development Board (EDB)

The National Chamber of Exporters of Sri Lanka (NCE)

The Plastics & Rubber Institute of Sri Lanka

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

ANALYSIS - Appraisal of Subject Company

Rating:
a) Business Scale	Large
b) Business Trend	Steady Growing
c) Management Capability	Above Average
d) Commercial Morality	Above Average
e) Reputation	Above Average
f) Market Situation	Very Competitive

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.27
UK Pound	1	Rs. 103.66
Euro	1	Rs. 85.17

INFORMATION DETAILS

Report Prepared by :

DPT

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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