MIRA INFORM REPORT

 

 

Report Date :

06.11.2014

 

IDENTIFICATION DETAILS

 

Name :

IDEAL IMPORTS

 

 

Registered Office :

No 96 3/2 Wasala Road Colombo 13 Colombo

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

2002

 

 

Legal Form :

Sole Proprietorship (In Operation)

 

 

Line of Business :

Trader of agricultural commodities

 

 

No of Employees :

25

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – 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

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. 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

:

IDEAL IMPORTS

 

 

 

 

 

b.

 

Legal Form  & Status

:

Sole Proprietorship (In Operation)

 

 

 

 

 

c.

 

Manager

:

Dinesh Balasunderam

d.

 

Primary Line of Business

:

Trader of agricultural commodities

 

 

 

 

 

f.

 

No. of Employees

:

25

 

 

COMPANY DETAILS 

 

Registration and Shareholder Details

 

a.

Registration No

:

Refused to disclose details

 

 

 

 

b.

Year of Registration

:

2002

c.

Registered Address

:

# 96-3/2, Wasala Road, Colombo 13.

 

Area: 1100 sq ft (Rented) 

 

d.

Proprietor

:

Mr. A. Shiv Subramanium

42 Years

Proprietor

 

 

 

e.

Auditors

:

ACS & Co.

 

f.

Bankers

:

Bank of Ceylon

NDB Bank

ICICI Bank

Pan Asia Banking Corporation PLC 

g.

Trading Terms

:

 

 

Purchasing Terms

 

Cash, Credit and TT

 

Selling Terms

 

Cash and Credit

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

     

      THE COMPANY HAS REFUSED TO PROVIDE company INFORMATION or ITS FINANCES

                (Note: 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 detailed financials are available for this entity)

 

Particulars

 

 

2013-14

2012-13

Sales Turnover (Approximately) (Sri Lankan Currency)

 

200 Cr.

200 Cr.

 

 

CURRENT INVESTIGATION                      

 

·         History

 

Subject Company IDEAL IMPORTS is a Partnership company AS TOLD BY Mr. Balasunderam.. This is owned by family members who are partners.

                  When contacted, Mr. Dinesh Balasunderam who claimed to be the Managing Partner of the subject

                   Company, refused to disclose any operational details of the Company, without knowing the

details of the end user of this report. He re-iterated his displeasure in obtaining company details through a third party and insisted the identity of the end user for him to provide details.   

                

                   Our investigator visited the client given address # 96-3/2, Wasala Road, Colombo 13

 which is a flat in a housing complex. We were able to obtain the mobile number of the partners and contacted him. However, he refused to disclose details as stated above IN SPITE OF OUR DETAILED EXPLANATION. Our observation is that he is hiding his identity due to reasons best know to him and evading us.

 

 

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 company details at the Registrar’s office to verify the Partnership/Proprietorship details etc and check the authenticity of the details provided by the subject company.                       

                                                        

Location.

The business place of the Subject Company is NOT DISCLOSED. The client given address # 96-3/2, Wasala Road, Colombo 13 is a flat in the housing complex.. The business place should be elsewhere, the details of which are refused to divulge by Dinesh, the owner

·         Operational Details.

                    Trader of agricultural commodities

 

Products

Agro Commodities

 

·         Imports & Countries

India, Malaysia, Pakistan, Egypt

 

No of Employees

 

                  25

 

·         Trade references

 

                  The subject company did not 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

 

 

INFORMATION PARTED

 

Name :

Mr. Dinesh Balasunderam

Designation :

Manager

Contact No.:

(00 94 77) 7 933 167

Date :

04.11.2014

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.39

UK Pound

1

Rs.98.00

Euro

1

Rs.76.98               

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SMN

 


 

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.