MIRA INFORM REPORT

 

 

Report Date :

21.07.2014

 

IDENTIFICATION DETAILS

 

Name :

V.V RAMASAMYPILLAI &SONS

 

 

Registered Office :

# 58, Cross Road, Nallur, Jaffna

 

 

Country :

Sri Lanka

 

 

Year of Incorporation :

1964

 

 

Com. Reg. No.:

Not Available 

 

 

Legal Form :

Partnership Concern

 

 

Line of Business :

·         Importers and Distributors of Tobacco (“Beedi”) leaves

manufacturer and distributor of “Beedi”, a Smoking Item like the Cigarette.

 

 

No of Employees :

(Approximately) 10 (Group)

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

     

Name of Subject of Inquiry

:

V.V RAMASAMYPILLAI &SONS

Legal Form  & Status

:

Partnership Concern  (In Operation)

Managing Partner

:

R.V. Sathialingam

Primary Line of Business

:

Importers and Distributors of Tobacco (“Beedi”) Leaves

Head Office

&

Place of Business

 

:

 

 # 58, Cross Road,

 Nallur,

Jaffna.

Sri Lanka.

                          

Tel. No: (00 94 21) 222 6806

Contact Person – Mr. Subramaniam, Manager

 

Colombo Office:

 

#169, Wolfendhal street,

Colombo 11.

 

Tel: (00 94 11) 243 6380 (Mr. R.V. Sathialingam)

 

No. of Employees

:

Approx. 10 (Group)

           

 

CONCERN DETAILS

Registration and Shareholder Details

 

 

Registration No

:

-Not Disclosed-

Date of Registration

:

1964

Registered Address

:

 # 58, Cross Road, Nallur, Jaffna. Sri Lanka

Partners

:

R.V. Sathialingam

Managing Partner

R.V. Kumaralingam

Partner

Auditors

 

-Not Disclosed

Bankers

:

-Not Disclosed-

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

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 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 V.V RAMASAMYPILLAI &SONS is Partnership Concern, in operation.

                  We were informed that the proprietor Mr. Sathialingam has gone out of the country and returning at the end of the month. The manager declined to provide operational and financial details in his absence and also without knowing the name and the details of the end user of this report.

                  

                   Note:

The Proprietorship/Partnership Companies are registered at the Provincial Registrar of Companies and as the management declined to provide registration details it is not possible to trace concern details at the Registrar’s office.

                        

                    The concern has been established in around 1964 and the business has been affected due to

                    the terrorist activities in the area until 2009 and since then the business revived and in

                    operation. The import and export side of the concern is handled by the Associate Concern

                    “ARVEGIE (PVT) LTD”                                 

 

·         Location.

                  The Subject Concern is located at the client given address # 58, Cross Road, Nallur,   

                  Jaffna. Sri Lanka, which is the Main City of the Northern Province, approx.400 kilo

                   Metres from Colombo.

 

·         Operational Details.

 

General

                 The subject concern primary line of business is an Importers and Distributors of Tobacco

                  (“Beedi”) leaves and manufacture and distribution of “Beedi”, a smoking item like the

                  Cigarette.

 

                  The subject is having an associate concern named “ARVEGIE (Pvt) LTD” (word

                   ARVEGIE pronounced as RVG) at # 169, Wolfendhal Street, Colombo13.

 

Products

 Tobacco Leaves & “Beedi”

 

Importing Country

India.

 

Employees

                  Approx. 10 (Group)

 

·         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 is not required to make public disclosure of their annual financials. 

                  Therefore no Financials are available for this entity

 

·         General Comments

The subject concern when contacted declined to disclose any financial information without knowing name/details of the end user of this report. However, information received from the concern 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

 

 

Business Trend

Growing

Management Capability

Average

Commercial Morality

Average

Market Situation

Competitive

                                   


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.33

UK Pound

1

Rs.103.18

Euro

1

Rs.81.58

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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.