MIRA INFORM REPORT
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Report No. : |
321916 |
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Report Date : |
16.05.2015 |
IDENTIFICATION DETAILS
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Name : |
WAYAMBA TRADERS |
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Registered Office : |
# 367, 3rd Floor, Dam Street, Colombo12 |
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Country : |
Sri Lanka |
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Year of Incorporation : |
1993 |
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Legal Form : |
Partnership Company (In Operation) |
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Line of Business : |
Export & Distributors & general merchants of Agri foods & commodities |
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No. of Employees : |
Not Disclosed |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
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Source
: CIA |
GENERAL - Basic information at a glance
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a. |
Name of Subject of Inquiry |
: |
WAYAMBA TRADERS
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b. |
Legal Form & Status |
: |
Partnership Company (In Operation) |
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c. |
Managing Partner |
: |
Fazal Ahamed |
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d. |
Primary Line of Business |
: |
Export &
Distributors & general merchants of Agri foods & commodities |
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e. |
Place of Business |
: |
#
367, 3rd Floor, Dam
Street, Colombo12, Sri
Lanka. Tel.
No: (00 94 11) 523 4158, 521 9491 Fax
No: (00 94 11) 233 9257 Mobile:
(00 94 77) 385 1408 Email:
info@wayambatraders.com Branch
Office: #86,
Peer Saibo Street, Colombo 11. |
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f. |
No. of
Employees |
: |
Not
Disclosed |
COMPANY
DETAILS - Registration and Shareholder
Details
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a. |
Registration No |
: |
Not Disclosed |
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b. |
Date of Registration |
: |
1993 |
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c. |
Registered Address |
: |
# 86, Peer Saibo
Street, Colombo 12 |
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d. |
Partners |
: |
Fazal Ahamed |
Managing Partner |
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S.H. Sadikeen |
Partner |
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e. |
Auditors |
: |
Not Disclosed |
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f. |
Bankers |
: |
Not Disclosed |
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FINANCIAL
DETAILS - Most recent available Financial Information
The Manager of the when contacted declined to provide details regarding the Company registration etc but declined financial details without knowing who the enquiring party is as they have “fear” that the details will go to their competitors and/or govt. agencies
Based on the corporate laws of Sri Lanka, legal entities which are Private Companies with Limited Liability/Proprietorships/Partnerships 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 WAYAMBA TRADERS is a Partnership Company, in operation.
Mr. Fazal, was
contacted and he declined to provide
establishment details to prepare this report without knowing the identity of
the enquiring party as they
Note:
The Proprietorship/Partnership companies
are being registered at the Provincial Registrar of Companies (Colombo) and
when the owner/partner refuses to provide company details and /or not available
for contact, it is not possible to extract such details from the Provincial
Registry and also to verify the accuracy of the details.
·
Location.
The Subject Company is located at # 367, 3rd Floor, Dam Street, Colombo 12
and
Branch at #86, Peer Saibo
Street, Colombo 11, which are very important commercial
areas.
The client is also the company’s registered address.
·
Operational
Details.
General
The subject company primary
line of business is Export &
Distributors and general merchants of Agri foods & commodities
Product
Maize, Cinnamon, Black Pepper, Clove, Mace, Soya Beans, Nutmeg &
Mace,
Garcinia, cardamom, etc & Spice Oil
Sesame seeds, Soya Beans, coffee beans, Maize (Corn), Desiccated coconut
·
Export Countries
China, Myanmar
No of Employees
Not Disclosed
Trade References:
Sri Lanka Export Development
Board (EDB)
Media Reports
The following media reports
concerning the subject company were found and reproduced
below for information.
1. Lanka Truth Web
Paper- 10th May, 2014.
Illegal betel nuts
released to ‘Wayamba Traders’
SATURDAY, 10 MAY 2014 13:08
3 COMMENTS
Nine containers of dried areca nuts or betel nuts smuggled into
the country illegally and were seized by Customs have been released on the 7th
on an order from Director General of Customs despite the Director General of
the Department of Agriculture had informed that import of betel nut was banned
and the Minister of Minor Export Crop Promotion had ordered that betel nut
should not be imported without a written authority from the Director General of
Department of Export Agriculture.
The Additional Director of
Customs M. Kuiharan has told media that the containers of betel nuts were
released on instructions from Director General Customs.
According to the law of the
country any floral matter could be imported only with a plant import permit and
the Director General of Customs has been informed by the Director General of
Department of Agriculture that a letter issued on 17th April, 2014 states
importing or exporting betel nut has been banned on a directive by the cabinet.
Customs officers stopped
releasing the containers of betel nuts on this directive.
Also, the Minister of Minor
Export Crop Promotion has informed by letter on 5th May not to import betel nut
without a written authority from the Director General of Department of Export
Agriculture.
According to reports there are
57 containers of betel nuts in Colombo harbour and all of them have been
imported by a single trader named ‘Wayamba Traders’.
Betel nuts are imported on the
pretext of re-importing to India and there are no proper guidelines or a
process of inspection regarding the trade say sources in the Departments of
Agriculture and Customs.” Unquote
2. Lanka News Web- 06h March,
2014
Wayamba Traders bribes Chamuditha by the millions!
Thursday, 06 March
2014
Wayamba
Traders, which has obtained the monopoly from the ministries of agriculture,
commerce and industries to import arecanuts, has been paying Rs. 2.5 million a
month to businessman-journalist Chamuditha Samarawickrama, for being the media
coordinator for the deal, it is reported. The former TNL journalist gives the
permission and does the relevant media coverage.
In Sri Lanka, it has become a
trend for businessmen fronting as journalists to join government ministries as
media consultants and strike deals with various businessmen through the respective
ministers. Previously, as the media consultant to the health ministry,
Chamuditha had struck several such deals, say ministry sources.
Chamuditha has obtained money
from Wayamba Traders owner Thadikin and leaked to the media that one
‘Yakada Sampath’, a friend of MP Namal Rajapaksa and minister Johnston
Fernando, had imported five container loads of arecanuts without agriculture
ministry permission. Thadikin pays a monthly sum to Chamuditha, thanks to which
the latter owns a luxury apartment at Bambalapitiya and uses a ‘C’ class luxury
Benz car, his media colleagues point out.” Unquote
3. Sunday Times: May 18, 2014
Confusion over betel-nut imports
By Chris Kamalendran
View(s):
An
attempt by four ministries to protect local betel nut production and increase
foreign exchange earnings by the export of its value-added product, has failed
to achieve the desired results – the reason a controversy over the
implementation of a Cabinet decision.
The objective was to reduce Indonesian betel nut imports which are then
processed and re-exported to India and the Middle East, and to promote local
production.
Agriculture
DG’s letter revoking permits and (right) Agriculture Ministry Secretary’s
letter to Customs DG
Currently,
Wayamba Traders is one company involved in betel nut import, reprocessing and
re-export to India and the Middle East.
However, four ministries studied the consequences of betel nut imports,
including the possible spread of insects and diseases to the same Palmae family
trees including coconut.
This
was because coconut trees have been vulnerable to various diseases in the past.
Last year, some 162,000 nut-bearing coconut trees in the Matara District were
felled as the coconut’s leaf-withering disease spread in the district.
Similar
measures were resorted to in several other areas to prevent the spread of
diseases, prompting the Consumer Affairs Ministry to import coconuts from
India. With a view to restricting imports, a joint memorandum by the ministries
of Agriculture, Industry and Commerce, Minor Export Crop Promotion and Coconut
Development and Janatha Estate Development, was submitted to Cabinet earlier
this year.
The
‘memo’ called for “strategies for a new method of trading aimed at earning
foreign exchange through temporary import of plant production and re-exporting
same with value addition.”
One
reason to restrict the imports was the high risk of exposure to harmful
micro-organisms and pests, and the spread of disease to other plants,
particularly those of the Palmae Family, even after fumigation.
The
‘memo’ also noted that Sri Lanka was gaining a marginal benefit in terms of
value addition, of around US$ 4 million, annually.
Therefore, it was decided to stop the issuance of new licences for re-exporting
of betel nuts under the Temporary Import for Export Purpose, or ‘TIEP’, scheme.
They
also decided to gradually scale down the import of betel nuts over a five-year
period under the TIEP scheme, to enable existing processors to substitute
imports with local produce.
In
order to promote local production, an imposition of a condition was proposed,
that two metric tons (MT) of local betel nut be purchased for every MT imported
for re-export.
Another
decision was to regulate the import of betel nuts under the supervision of the
Export Control Dept., Agriculture Dept., and the Customs, to ensure no
‘leakages’ of imported betel nuts into the local market.
More
imports
Further, in order to boost local production, it was also decided to accelerate
cultivation programmes.
The
objectives were clear and the guidelines were approved.
The
Agriculture Dept., acting on the Cabinet decision of April 4, informed the
Director General (DG)-Customs that all permits issued by it, for the import and
re-export of betel nuts under the TIEP scheme, “is hereby revoked.”
Since
the Cabinet decision in April, more than 2,700 MT have been cleared, while 40
more containers have been imported. The containers were detained by the Customs
for investigation, but eventually released on instructions from higher
officials in the Dept.
This was after the Agriculture Ministry Secretary R.M.D.B. Meegasmulla in a
letter dated April 30 addressed to the Customs Director General said ‘Please
follow only the decision of the Cabinet.”
However, Agriculture Dept., Director General Dr R.R.A. Wijekoon told the Sunday
Times that despite his previous decision more stocks had arrived. He maintained
yesterday that the decision to revoke the issue of permits had not been
changed.
“When
betel nut is imported into the country, it needs to undergo a fumigation process
at the Coconut Research Institute, Lunuwila. However, this has not taken
place,” he said.
According
to Wayamba Traders Managing Partner S.H. Sadikeen the Cabinet decision had been
‘misinterpreted’ by the Agriculture Dept, and he had written to the Customs
clarifying the issue.
He
said that the Cabinet decision only states that no “new permits” will be
allowed under the TIEP scheme and they have been in business since 1993. He
said after the Secretary issued the letter the stocks were cleared from the Customs.
Customs
spokesman Leslie Gamini, who is also its Director-Legal, said that this
particular company was using TIEP permits approved by Cabinet in 2012, while
the recently approved Cabinet decision has yet to come into effect.
However,
Dr Wijekoon maintained that all permits issued under the TIEP scheme have been
revoked.
As controversy reigns over the Cabinet decision betel nut stocks continue to
enter the country.” Unquote
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 BY
|
Name : |
Mr. Fazal Ahamed |
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Designation : |
Partner |
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Contact No.: |
0009411 (5234158) |
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Date : |
12.05.2015 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.58 |
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|
1 |
Rs.100.30 |
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Euro |
1 |
Rs.72.38 |
INFORMATION DETAILS
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Information
Gathered by : |
NYA |
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
VNT |
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.