MIRA INFORM REPORT
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Report No. : |
327311 |
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Report Date : |
20.06.2015 |
IDENTIFICATION DETAILS
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Name : |
R. G. BROTHERS |
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Registered Office : |
103 2/1, Mahavidyalaya Mawatha, Colombo 13 |
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Country : |
Sri Lanka |
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Date of Incorporation : |
02.11.2005 |
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Com. Reg. No.: |
WP 63712 |
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Legal Form : |
Proprietorship Company |
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Line of Business : |
Subject is importers and distributors of consumer food products |
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No. of Employee : |
50 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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
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a. |
Name of Subject of Inquiry |
: |
R. G. BROTHERS |
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b. |
Legal
Form & Status |
: |
Proprietorship Company (In Operation) |
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c. |
Proprietor |
: |
Ponnampalam Ramanathan |
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d. |
Primary Line of Business |
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Importers and
Distributors of Consumer food products. |
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e. |
Head Office and places of business |
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# 103 2/1, Mahavidyalaya Mawatha, Sri Lanka Mobile No: (00 94 77) 768 4067 - Mr. P. Ramanathan Tel No: (00 94 11) 238 2572; 436 2541 Fax No: (00 94 11) 242 4062 Email: rg@hotmail.com Factory & Processing Plant: #228, Canal Road, Wattala. |
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f. |
Sales Office |
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# 81, 5th Cross Street, Colombo 11, Sri Lanka |
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: |
# 151, 04th Cross Street, Colombo 11, Sri Lanka |
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# 78, 04th Cross Street, Colombo 11, Sri Lanka |
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g. |
No. of Employees |
: |
50 Approximately
in the permanent cadre. Approx.50 -75.Casual labour is used for loading and
unloading of shipments and other services as and when required. |
COMPANY
DETAILS
Registration and Shareholder
Details
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a. |
Registration No |
: |
WP
63712 |
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b. |
Date of
Registration |
: |
02nd
November 2005 |
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c. |
Registered Office |
: |
# 103, 2/1, Maha Vidyalaya
Mawatha, Colombo 13, Sri Lanka |
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d. |
Auditors |
: |
Joseph & Company |
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e. |
Company
Secretaries |
: |
Not
Applicable for this category of companies |
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f. |
Bankers |
: |
Sampath
Bank, Hatton National bank; MCB Bank, National Development Bank |
FINANCIAL
DETAILS
Most
recent available Financial Information
We have contacted the Proprietor of
company to obtain financial information and he declined to give us any financial information as they have a fear
that the information might go to competitors or to govt. Agencies and insist to
know the details of the end user.
But he responded to our inquiries and provided limited financial information thus:
The
value of imports for a month is approx. Rs. 500 million and sales Rs. 150-200
million a day.
(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 Financials are available for clients/outsiders)
CURRENT
INVESTIGATION
·
History.
The Subject Company R. G. BROTHERS
is a Proprietorship Company incorporated on 02nd
November 2005 under registration no. WP
63712, at the Provincial Registrar of Companies, Western Province, Colombo.
Note: The Proprietorship/Partnership Companies are
registered at the Provincial Registrar of Companies)
·
Location.
The subject
company is located at client # 103 2/1,
Maha Vidyalaya
Mawatha, Colombo 13, Sri
Lanka.
The Sales Centres are located at the main business area in the city such as:
# 151, 04th Cross
Street, Colombo 11
# 78, 04th Cross
Street, Colombo 11
# 81, 5th Cross Street, Colombo 11
A Processing Factory with
60,000 Sq.Ft. with modern machinery has been opened up at
#228, Canal Road, Wattala,
Approx. 10 kilo meters from Colombo.
This Factory with 60,000 sq.ft.at Wattala for processing, cleaning and packing of food items such as dhal, Chickpeas, coriander, lentils etc to maintain and improve quality.
Operational
Details
General
The subject company’ primary
line of business is an Import and
Wholesale/retail Distributors of consumer durables. Their business places are
situated in the busiest business place in the city of Colombo where all types
of general merchants are operating.
Products
Many kinds of food items such as Chickpeas,
Chillies, Lentils, VSP, Canned Fish, Canned Dhal, Mustard, Garlic, Cumming
seeds, sugar, onions, potatoes, rice Etc…
Importing Countries
India, Malaysia, Thailand, Singapore, China,
Canada, USA, Turkey, Australia etc…
No of Employees
Approximately 50 in the
permanent cadre and casual labour is used for loading and unloading
of shipments and other services as and when required, which is approx.50 -75.
Trade
references
The Ceylon
Chamber of Commerce
Litigation
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.
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
DENIED
Management non-cooperative (00094777684067 / 00094112382572)
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.82 |
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|
1 |
Rs.101.26 |
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Euro |
1 |
Rs.72.36 |
INFORMATION DETAILS
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Information
Gathered by : |
SUV |
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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 |
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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.