MIRA INFORM REPORT

 

 

Report No. :

301854

Report Date :

17.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SGL TRADING

 

 

Registered Office :

# 12, 3rd Cross Street,  Colombo- 11

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

Not Available

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Proprietorship Company [In Operation]

 

 

Line of Business :

Importers & Distributors of Textiles

 

 

No. of Employee :

5

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

:

SGL TRADING

b.

Legal Form  & Status

 

:

 

Proprietorship Company (In Operation)

c.

 Managing Proprietor

 :

Mr. Haroon Ahmed

d.

Primary Line of Business

:

Importers & Distributors Textiles

e.

Office & Place of Business

:

 

# 12, 3rd Cross Street, 

Colombo- 11

Sri Lanka.

 

Tel. No: (00 94 11) 233 6652-52, 232 8981

Fax No: (00 94 11) 344 0321

 

 

 

f.

No. of  Employees

:

Approx.05

 

 

COMPANY DETAILS  - Registration and Shareholder Details

 

 

a.

Registration No

:

Not Disclosed

b.

Year of Registration

:

Not Disclosed

c.

Registered Address

:

 

# 12, 3rd Cross Street, Colombo- 11. Sri Lanka.

 

d.

Proprietor

:

 

Haroon Ahmed

 

Managing Partner

e.

Auditors

:

Not Disclosed

f.

Bankers

:

Not Disclosed

 

 

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, proprieotrships 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, SGL TRADING is Proprietorship Company in operation.

                  When contacted, the manager of the subject company informed us that their company import

                   textiles from India and declined to disclose any operational details of the

                  Company, without knowing the details of the end user of this report.

 

Our investigators visited the client # 132, 2nd Cross Street, Colombo 11 and found that the premise and also the given contact numbers belong to another company named Ramya Stores. After in-depth investigations, the subject company was located at #12, 3rd Cross Street, Colombo 11. 

 

               

                 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.                         

                                                      

·         Location.

 

     The Subject Company is presently located at # 12, 3rd Cross street, Colombo 11, one of the   

      main business places in Colombo City where wholesale/retail Merchants are operating.

 

     The client given address, # 132, 2nd Cross Street, Colombo 11 and the contact numbers

      are incorrect and are  belonging  to another company.

    

·         Operational Details.

 

General

                  The subject company primary line of business is Import & distribution of all kids of Textiles

 

Products

 All kinds of Textiles/Fabrics

                       

·         Import & Countries

India

 

No of Employees

                 

                  Approx.05

 

 

 

·         Trade references

 

                  The subject company refused 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 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 declined BY

 

Name :

Mr. Haroon Ahmed

Designation :

Proprietor

Contact No.:

0094-772743315

Date :

14.01.2015


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.93.92

Euro

1

Rs.72.00

 

 

INFORMATION DETAILS

 

Information Gathered by :

PPT

 

 

Analysis Done by :

SUB

 

 

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.