MIRA INFORM REPORT

 

 

Report No. :

318286

Report Date :

28.04.2015

 

IDENTIFICATION DETAILS

 

Name :

KARUNARATNA & COMPANY

 

 

Registered Office :

481/48, Salmal uyana, Rajasinghe Mawatha, Udumulla, Mulleriyawa

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

17.12.1984

 

 

Com. Reg. No.:

W 42102

 

 

Legal Form :

Partnership Company 

 

 

Line of Business :

Subject is importers and distributors of ayurvedic drugs & raw materials

 

 

No. of Employee :

07

 

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 :

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

SHRI 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

:

 

KARUNARATNA & COMPANY

 

 

 

 

:

 

b

 

Legal Form  & Status

 

Partnership Company  (In Operation)

 

 

 

:

 

c

 

Managing Partner

 

Chaminda Karunaratne

 

 

 

 

 

d.

 

Primary Line of Business

:

Importers and Distributors of Ayurvedic Drugs & Raw materials

 

 

 

 

 

e.

 

Place of Business

 

:

 

# 481/48, Salmal uyana,

Rajasinghe Mawatha,

Udumulla,

Mulleriyawa.

           

 

Tel. No: (00 94 11) 257 8905

Fax No: (00 94 11) 257 8905

 

Mobile: (00 94 77) 651 5525 - Mr. Chaminda Karunaratne

 

E-mail: karunacom@gmail.com   

 

f.

 

No. of Employees

:

Approximately  07

 

 

           

 

 

                       


COMPANY DETAILS

 

 Registration and Shareholder Details

 

a.

Registration No

:

W 42102

b.

Date of Registration

:

17th December 1984

c.

Registered Office

:

 

# 481/48, Salmal uyana, Rajasinghe Mawatha,

Udumulla, Mulleriyawa.

 

 

 

 

 

d.

Partners

:

A. K. D. Chandrasena Karunarathne

 

Partner

 

 

 

Chaminda Karunaratne

 

Partner

 

 

 

A. A. Murean Nona (Ms)

 

Partner

e.

Secretaries

:

-Not Applicable for this category of companies

 

 

 

 

f.

Auditors

:

-Not Disclosed-

 

 

 

 

g.

Bankers

:

Commercial Bank PLC

Old Moor Street Branch, Clombo

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

     

  The company has declined to provide information on its finances

 

The Manager of the Company has declined to provide information on its Finances and also operational     Details as they fear that the information will reach their competitors and/or the government agencies.

          

It should be noted that the particular industry/trading segment the company is involved has very good   growth potential and as such it can be expected for the company to expect a growth in the income.

                                                                                                                                                                       

Note: 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 KARUNARATNA & COMPANY is a Private    Limited   liability Company incorporated in 17th December 1984.

 

·         Location.

 

The Subject Company is located at the client. # 481/48, Salmal uyana, Rajasinghe     Mawatha, Udumulla, Mulleriyawa

 

·         Operations Details.

General

 

The subject company primary line of business is Importers and Distributors of Ayurvedic Drugs and raw materials.

It was stated that they are registered suppliers of Ayurvedic drugs -2014/2015 to Central Provincial Council, Kandy.

 

 

Products

Ayurvedic Drugs, Medical Herbal and Roots such as Died ginger, Upalet, Galangal Root aconite etc.

 Local Oils and healing drugs/creams such as gingerly oil, margosa oil etc.

 

 

Country

India, Pakistan and China

 

 

Employees

                  Approximately 07

 

Payment Terms 

Cash and Cheque (Purchasing and Selling Terms)

 

·         General Comments

 

When the Subject Company was contacted they were cooperative and polite in providing the information given in this report, however they were reluctant to provide financial and any other background information that would have been useful to enhance this report.

 

 

·         Trade references

 

Department of Ayurveda

 

 

·         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         

Small

b) Business Trend

Growing

c) Management Capability

Average

d) Commercial Morality

Average

e) Reputation

Average

f) Market Situation

Competitive

                       

 

INFORMATION PARTED BY

 

Name :

Mr. Chaminda

Designation :

Partner

Contact No.:

00094776515525

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.61

UK Pound

1

Rs.96.56

Euro

1

Rs.69.18

 

INFORMATION DETAILS

 

Information Gathered by :

NYN

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ASH

 

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.