MIRA INFORM REPORT

 

 

Report No. :

309582

Report Date :

12.03.2015

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE DIAMOND TOOLS (PVT) LTD

 

 

Registered Office :

Plot No. 92, 93 & 94  Biyagama Export Processing Zone (BEPZ)  Phase-I, Biyagama,  Malwana

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

05.12.2003

 

 

Com. Reg. No.:

N (PVS) 35976

 

 

Legal Form :

Private Limited Liability Company  (In Operation)

 

 

Line of Business :

Manufacture and exporter of Diamond Tools

 

 

No. of Employee :

Approximately 200

 

 

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 – 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

 

 

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

:

RELIANCE DIAMOND TOOLS (PVT) LTD

b.

Legal Form  & Status

:

Private Limited Liability Company  (In Operation)

c.

Managing Director /CEO

 :

Kollareddy Raghava Reddy

d.

Primary Line of Business

:

Manufacture and exporter of Diamond Tools

e.

Place of Business & Factory

:

 

Plot No. 92, 93 & 94 
Biyagama Export Processing Zone (BEPZ) 

Phase-I, Biyagama,

Malwana,

SriLanka

 

Tel. No: (00 94 11) 246 5867

Fax No: (00 94 11) 246 5868 / 481 9370

 

E Mail: sales@reliancediamondtools.com

 

f.

No. of  Employees

:

Approximately 200

                       

 

COMPANY DETAILS 

 

- Registration and Shareholder Details

 

a.

Registration No

:

N (PVS) 35976

Date of Registration

:

05th  December 2003

b.

Re-registration No

 

PV 20947

Date of Re-registration

 

22nd  March 2011

c.

Registered Office

:

C/O, South Asia Granite and Marble (PVT) LTD Bepz, Walgama, P.O, Malwana, Biyagama.

d.

Board of Directors

As At

31st August 2011

:

Kollareddy Raghava Reddy 

Managing Director

 Kollareddy Soumya

Director

Deepak Kukreti

Director

Singothu Sriramulu

Director

Ranganayakamma Kollareddy

Director

e.

Issued Share Capital

:

Rs.    40,000,020.00  

Number of Shares

:

          4,000,002

f.

Nominal Value of Share

:

Not declared/disclosed vide Companies Act #7 of 2007

g.

Share Holders

As At

31st August 2011

 

 

                       Share Holders

No. of Shares

Kollareddy Raghava Reddy

01

Kollareddy Soumya

01

Midwest Granite (Pvt) Ltd – (Incorporated in India)

4,000,000

h.

SVAT No.

 

SVAT004798

Reg. Date

 

25th August 2011

i

TIN No.

 

114359769

j.

Auditors

:

Weerasinghe and Company, 1E-2/1, De Fonseka Place, Colombo   04.

 k.

Company Secretaries

:

IMS Corporate Services (Pvt) Ltd, #291/2, Havelock Road, Colombo 6.

 l.

Bankers

:

Not Disclosed/ Not available

 

 

FINANCIAL DETAILS

 

- Most recent available Financial Information

 

The company has declined to provide information on its finances

                                                                       

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 RELIANCE DIAMOND TOOLS (PVT) LTD is a Private    Limited   Liability Company incorporated on 05th December 2003 under registration number     N (PVS) 35976, and then the company was re-registered on 22nd March 2011 under registration number PV 20947

 

·         Location.

 

The Subject Company is located at the client Plot #, 92, 93 and 94 Biyagama Export Procesing Zone (BEPZ) Phase- I, Biyagama. Subject is a Board of Investment (BOI) approved company.

 

Reliance Diamond Tools Private Limited, Colombo company is established in 2004, it is one of sister concern of Midwest Group headed by Sri K Raghava Reddy, Chairman & Managing Director of Midwest group of companies

 

 

Reliance Diamond Tools (RDT) is conventionally located at Biyagama, SriLanka, which is 30 Kilometres away from Colombo. Reliance Diamond Tools is diamond tool developers, manufacturer and suppliers of products for quarrying industries and processing industries in India as well as overseas. RDT have complete automated manufacturing unit which are imported from company in manufacturing of powder metallurgy equipments. RDT can manufactures and sells a complete range of diamond tools necessary for processing natural stone from its extraction in the quarry, through slabbing, sawing, processing and surfacing, up to final polishing. The products encompasses diamond wire saws, diamond blades, segments for all kind of saws and other diamond tool products they developed based on customer’s requirement

 

·         Operations Details.

 

General

The subject company primary line of business is Manufacture and exporter of Diamond   Tools.

 

Products

Diamond Wires & Beads, Circular saw, Mutli-Wire

 

diamond wire diamond segments diamond blades

 

 

Export Countries

India, China, Korea, Europe

 

No of Employees

Approximately 200

 

 

·         Director’s Details

 

  01)

Name

Kollareddy Raghava Reddy 

PP Number

Z 057039

Nationality

Indian

Gender

Male

Address

BEPZ, Walgama P.O, Malwana, Biyagama

       

 02)

Name

K. Soumya

PP Number

F1664871

Nationality

Indian

Gender

Male

Address

BEPZ, Walgama P.O, Malwana, Biyagama

 

03)

Name

Deepak Kukreti

PP Number

EA 445787

Nationality

New Zealand

Gender

Male

Address

BEPZ, Walgama P.O, Malwana, Biyagama

        

04)

Name

 Singothu Sriramulu

PP Number

E 7160897

Nationality

Indian

Gender

Male

Address

BEPZ, Walgama P.O, Malwana, Biyagama

 

05)

Name

Ranganayakamma Kollareddy

PP Number

Z 1865554

Nationality

Indian

Gender

Male

Address

BEPZ, Walgama P.O, Malwana, Biyagama

 

Note: Directors are foreigners and gender/residence address details not available.

          We were told that they are all males.

 

·         Trade references

                 

The subject company did not or declined to provide any trade reference referrals

(Suppliers & customers)

The products are only for export foreign countries including India and not available for

Local market. Hence no local customers

 

 

·         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.

 

Market Reputation:

 

No adverse data found.

 

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 CO-OPERATIVE


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.75

UK Pound

1

Rs.94.60

Euro

1

Rs.67.10

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ANK

 

 

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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