MIRA INFORM REPORT
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Report Date : |
05.11.2014 |
IDENTIFICATION DETAILS
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Name : |
ONIDA STEELS |
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Registered Office : |
41, Quarry Road, Colombo-12 |
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Country : |
Sri Lanka |
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Year of Establishment : |
1993 |
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Legal Form : |
Partnership Company |
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Line of Business : |
Trader, Importer, Stockist and Supplier of
Iron, Steel Products and General Hardware. |
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No. of Employees : |
Approximately 20 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Sri Lanka |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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. 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 |
: |
ONIDA STEELS |
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b. |
Legal Form & Status |
: |
Partnership Company (In Operation) |
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c. |
Managing Partner |
: |
S. Ganesh |
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d. |
Primary Line of Business |
: |
Trader,
Importer, Stockist & Supplier of Iron, Steel products and General
Hardware |
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e. |
Head Office & Place of Business,
Warehouse |
: |
# 41,
Quarry Road, Colombo-12, Sri Lanka.
Tel. No: (00 94
11) 233 8889, 244 5065, 245 9990 Fax No: (00 94 11) 245 9991 E-mail: info@onidasteels.com |
|
h. |
No. of Employees |
: |
Approximately
20 |
COMPANY
DETAILS
- Registration and
Shareholder Details
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a. |
Registration No |
: |
Not Disclosed |
|
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b. |
Date of Registration |
: |
1993 |
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c. |
Registered Office |
: |
# 41, Quarry Road, Colombo-12, Sri Lanka. |
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d. |
Partners |
: |
S.
Ganesh |
Managing Partner |
|
G.
Ramshankar |
Partner |
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e. |
Auditors |
: |
Not Disclosed |
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f. |
Company Secretaries |
: |
Not Applicable |
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g. |
Bankers |
: |
Hatton National Bank PLC, Colombo-12 |
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h. |
Trading Terms |
: |
Purchasing Terms: Cash and Cheque Sales Terms: Cash and Cheque |
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i. |
Type of Customers |
: |
Retiles and End Users |
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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/Partnerships/Proprietorships are not required to make public
disclosure of their annual financials. Therefore no financials are available
for this entity
Current
Investigation
· History.
The Subject Company ONIDA STEELS is a Partnership company in operation. We have been told that they
are in operation since 1990s but declined to provide the date of registration etc.
The Proprietorship/Partnership companies are being
registered at the Provincial Registrar of Companies and when the owner decline
to provide such details, it is not possible to obtain such details from the
registry as the documents are not computerised and not in orderly manner.
·
Location.
The Subject
Company is located at the client # 41,
Quarry Road, Colombo-12. One of
the highly commercial areas in Capital Colombo and also the hardware merchants
are in operation.
·
Operational
Details.
General
The subject
company’s primary line of business is Import and distribution of all kinds of Iron
and Steel.
Products:
Aluminium Plain Sheets, Aluminium
Chequered Plates, Sheets, Channel iron, Square & Rectangular tubes, Round bars, Schedule
Pipes etc….
.
Import
Countries
India, China,
Indonessia, Japan, South Korea, Malaysia, Russia, Singapore, Taiwan, Europe
No of Employees
Approximately 20
Below:
An Extract from SLT Rainbow Classified Ad page.
·
Trade references
§
The subject company did not provide any trade
reference referrals.
However, investigations have revealed that the
subject is a registered supplier to National Water Supply & Drainage
Colombo.
·
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
INFORMATION
PARTED BY
|
Name : |
Mr. Ram Shankar |
|
Designation : |
Partner |
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Contact No.: |
0009411 2338889 |
|
Date : |
03.11.2014 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.76.67 |
INFORMATION DETAILS
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Information
Gathered by : |
GYT |
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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 |
|
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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 |
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|
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 |
|
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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|
-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.