MIRA INFORM REPORT

 

 

Report Date :

19.05.2014

 

IDENTIFICATION DETAILS

 

Name :

GLOBAL TRADING & COMPANY

 

 

Registered Office :

#136/F, Dam Street, Colombo- 12.   

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

Not Available

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Partnership Company (In Operation)

 

 

Line of Business :

Importers, Dealers &  Distributors of Food Items

 

 

No of Employees :

Approximately 05

 

 

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, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

      

a.

Name of Subject of Inquiry

:

GLOBAL TRADING & COMPANY

b.

Legal Form  & Status

 

:

 

Partnership Company (In Operation)

c.

 Managing Partner

 :

Wellasamy Maheshwaran

d.

Primary Line of Business

:

Importers, Dealers &  Distributors of Food Items

e.

Office & Place of Business

:

 

# 136/F, Dam  Street ,

Colombo- 12.

Sri Lanka.

 

Tel./ Fax No: (00 94 11) 243 1802

Mobile No: (00 94 77) 7 883 889 (Mr. Maheshwaran)

                   

 

Email:  globaltradingandco@gmail.com

 

 

 

f.

No. of  Employees

:

Approximately 05

           

 

COMPANY DETAILS    - Registration and Shareholder Details

 

a.

Registration No

:

Not Disclosed

b.

Year of Registration

:

Not Disclosed

c.

Registered Office

:

#136/F, Dam Street, Colombo- 12.   Sri Lanka.

d.

Partners

:

Wellasamy Maheshwaran

Managing

Partner

P. Palaniappan

Partner

e.

Auditors

:

Not Disclosed

f.

Bankers

:

Pan Asia Bank PLC, Dam Street Branch, Colombo 11

 

 

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/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 company, GLOBAL TRADING & COMPANY is a Partnership Company, in operation.

 

When contacted the Managing Partner, Mr. Maheswaran of the subject company, he informed us that they import sugar for local distribution and declined to provide operation and financial details of the company without knowing the details of the end user of this report.

 

                 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 company details at the Registrar’s office.                         

                                                       

·         Location.

 

     The Subject Company is located at the client # 136/F, Dam Street, Colombo

     12, which is a highly commercial area where wholesale/retail Merchants are operating.

 

   

·         Operational Details.

 

General

                  The subject company primary line of business is Import & distribution of Sugar as a wholesale/ retail dealer.

 

Products

 

Sugar

 

·         Import & Countries

 

                  India

 

No of Employees

                  Approximately 05

 

 

 

·         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 subject company declined to provide any trade references

 

 

·         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

Competitive

                                   

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 58.86

UK Pound

1

Rs. 98.82

Euro

1

Rs. 80.71

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

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.