MIRA INFORM REPORT

 

 

Report Date :

21.02.2014

 

IDENTIFICATION DETAILS

 

Name :

CEYLON TRADING CENTRE

 

 

Registered Office :

# 332-A- 1/1, Old Moor Street, Colombo – 12

 

 

Country :

Sri Lanka

 

 

Year of Establishment :

1976

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Partnership Company (In Operation)

 

 

Line of Business :

Importer, Distributor and Wholesaler of metal sheets.

 

 

No of Employees :

Approximately 20

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

     

a.

Name of Subject of Inquiry

:

CEYLON TRADING CENTRE

b.

Legal Form  & Status

:

Partnership Company (In Operation)

c.

Managing Partner

:

M. Subramaniam

d.

Primary Line of Business

:

Importers and General Hardware Merchants.

e.

Place of Business

 

:

 

 # 332-A- 1/1, Old Moor Street,

Colombo – 12,

Sri Lanka.                   

  

Tel. No: (00 94 11) 233 4958 / 244 8622

Fax No: (00 94 11) 247 2490

 

E-mail: ctccol@gmail.lk 

 

f.

No. of Employees

:

 Approximately 20

           

 

COMPANY DETAILS    -

          Registration and Shareholder Details

 

 

a.

Registration No

:

Not Disclosed

b.

Date of Registration

:

Not Disclosed

c.

Registered Office

 

:

# 332-A- 1/1, Old Moor Street, Colombo – 12

d.

 

 

Partners

 

 

:

M. Subramaniam

Managing Partner

Other partners name not disclosed

-

e.

Auditors

:

Not Disclosed

f.

Bankers

:

Not Disclosed

 

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/Partnership/Proprietorships are not required to make public disclosure of their annual financials. Therefore financials of this entity are not available

 

 

CURRENT INVESTIGATION

 

Visiting Card

              

 

·                                                                                                                                 History.

The Subject Company CEYLON TRADING CENTRE Partnership Company in operation since 1976.

 

 

The Proprietorship/ Partnership companies are being registered at the Provincial Registrar of Companies and when the owner/partner does not provide the registration details it is not possible to extract such details from the Registrar’s office to verify the details.

 

 

·                                                                                                                                 Location.

 

The Subject Company is located at the client. # 332-A- 1/1, Old Moor Street,

Colombo – 12, a very prominent business area.

 

Our investigators visited the subject company and the office subject is on first floor of the four storied building. Its primary line of business is Importers and General Hardware Merchants, and the location of the stores not divulge. We talked with the managing partner of the Subject Company and he declined to provide information in-spite of repeated requests, without knowing the identity of the end user of this report even though initially he agreed

 

Note: In anticipation of subject’s response we had to take extra time to compile the report.          

                    

·                                                                                                                                 Operational Details.

 

General

 

The subject company primary line of business is Importers, Distributor and wholesale of metal sheets.

 

Products

 

Aluminium Sheet, GI Pipes etc.

 

 

Import Country

 

China, Malaysia and Singapore

 

Employees

 

The employee strength of the subject company is approximately 20

 

·         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/Partnership/Proprietorships are 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.

 

 

ANALYSIS - Appraisal of Subject Company

 

 

Rating:

a) Business Scale        

NA

b) Business Trend

NA

c) Management Capability

Average

d) Commercial Morality

Average

e) Reputation

Average

f) Market Situation

Very Competitive

                                   

 

Please note that Explanatory Notes on Credit Appraisal is given in the Glossary Section

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 62.28

UK Pound

1

Rs. 103.84

Euro

1

Rs. 85.69

 

 

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%)

 

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.