MIRA INFORM REPORT

 

 

Report Date :

20.10.2014

 

IDENTIFICATION DETAILS

 

Name :

LANKA FASTENER LIMITED

 

 

Registered Office :

Phase 2, Investment Promotion Zone, Katunayake

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

09.09.1994

 

 

Com. Reg. No.:

PB 778

 

 

Legal Form :

Public Limited Liability Company – Not Listed (In Operation)

 

 

Line of Business :

Manufacturer, Exporter and Importer of  Steel & Stainless Steel Nuts.

 

 

No of Employees :

100

 

 

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 – 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

:

 

LANKA FASTENER LIMITED

 

 b.

Legal Form  & Status

:

Public Limited Liability Company – Not Listed (In operation)

c.

Managing Director

:

Mathew Rohan Joseph

d.

Primary Line of Business

:

Manufacturer, Exporter and Importer of  Steel & Stainless Steel Nuts

e.

Head Office

&

Place of Business

 

:

 

Phase 2, Investment Promotion Zone,

Katunayake,

Sri Lanka.

 

Tel. No: (00 94 11) 225 2750

Fax No: (00 94 11) 225 2749

 

Email: fastener@slt.lk

            rohan@lankafastener.com

 

 

f.

No. of Employees

:

Approximately  100

 

 

COMPANY DETAILS  - Registration and Shareholder Details

 

a.

 

Registration No

:

N (PVS) PBS 13650

Date of Registration

:

09th September 1994

b.

Re-registration No

:

PB 778

Date of re-registration

:

27th November 2008

c.

Registered Office

:

Phase II, I P Z Katunayake

d.

Board Of Directors

As At

14th October 2013

 

:

Mathew Rohan Joseph

Managing Director

Philip James Fletcher

Director

D.D. Sunil Siriwardena

Director

e.

Issued Share Capital

:

Rs. 150,000,000.00

f.

Number of Share

:

15,000,000

g.

Nominal Value of Share

:

Not applicable vide Companies Act #7 of 2007

 

 

Registration and Shareholder Details

 

h.

Share Holders

As At

14th October 2013

 

:

 Share Holders

No of Shears

Mathew Rohan Joseph

14,999,994

Philip James Fletcher

01

Mendis Alexius Malik

01

J.L. Saliya Deekiriwewa

01

K.B. Bhanugupita Suriyapupita

01

D.S. Siriwardena

01

K.M. Rasika Hemamali

01

i.

Secretaries

:

Business Management Services Ltd

j.

Auditors

:

P.E. Mathew & Co

k.

Bankers

:

Peoples Bank, Commercial Bank, Bank of Ceylon

l.

Exports

:

Products: Finished Goods

Country: Europe, India and Asia

m.

Imports

:

Products: Raw Materials

Country: Taiwan and India

n.

Trading Terms

:

Purchasing Terms: Cheque and Credit

Sales Terms: Cheque and Credit

 

 

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 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 LANKA FASTENER LIMITED is a Public Limited liability                         Company incorporated in 09th September 1994 under the registration number N (PVS) PBS 13650 and then company has been re-registered on 27th November 2008 under the registration number PB 778

 

                  Lanka Fastener Limited was established in 1995. This 100% Sri Lankan company is one of the largest steel and stainless steel nut manufacturing facilities in South Asia, and has successfully obtained ISO 9000 certification.

 

·         Location.

 

                  The Subject Company is located at the client Phase 2, Investment Promotion           

                  Zone, Katunayake.

 

·         Operations Details.

 

General

 

                  The subject company primary line of business is Manufacturing & Exporting of Industrial fasteners bolts, nuts, drum closures, tooling and moulding, plastic products with prior written tooling and moulding, plastic products, hand tools

 

Products

Industrial fasteners bolts, nuts, drum closures, tooling and moulding, plastic products with prior written tooling and moulding, plastic products, hand tools

               Exporting Countries

All Asian and Middle East countries

 

 

Employees

                 Approximately 100

 

 

·         Directors’ Details.

 

01)

Name

Mathew Rohan Joseph

ID Number

640030186 X

Nationality

Sri Lankan

Gender

 Male

Date of Birth

3rd June 1964

Age

50 Years

 

 

02)

Name

Philip James Fletcher

ID Number

632970170 V

Nationality

Sri Lankan

Gender

 Male

Date of Birth

23rd October 1963

Age

50 Years

 

 

03)

Name

D.D. Sunil Siriwardena

ID Number

612104131 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

28th July 1961

Age

53 Years

 

 

·         Trade references

 

Sri Lanka Export Development Board

Ceylon National Chamber of Industries

National Chamber of Exporters of Sri Lanka

Board of Investment

 

 

·         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 computerized 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 [GENERAL DETAILS]

 

Name :

Ms. Deepthi

Designation :

Accounts Head

Contact No.:

0009411-2252750

Date :

18.10.2014

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.62

UK Pound

1

Rs.99.12

Euro

1

Rs.78.89

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

 

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.