MIRA INFORM REPORT
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Report No. : |
346470 |
|
Report Date : |
07.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
ASIABIKE INDUSTRIAL LIMITED |
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|
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Registered Office : |
# 114, Galle Road, Henamulla, Panadura |
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Country : |
Sri Lanka |
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Date of Incorporation : |
20.04.1994 |
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Com. Reg. No.: |
N (PVS/PBS) 12880 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Manufacture and exporting of mountain and all terrain bicycles |
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No. of Employees : |
375 (Approximetly) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Sri Lanka |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 government's 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, but low tax revenues remain a 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 |
: |
ASIABIKE INDUSTRIAL LIMITED |
|
b. |
Legal Form
& Status |
: |
Public Limited Liability Company (In operation) – not listed
with Colombo Stock Exchange |
|
c. |
Managing Director |
: |
M. F. Mohamed Isthiark |
|
d. |
Primary Line of Business |
: |
Manufacture and exporting of mountain and all terrain bicycles |
|
e. |
Place of Business & Factory |
: |
# 114, Galle Road, Henamulla, Panadura, Sri Lanka Tel. No: (00 94 38) 223 2327 Fax No: (00 94 38)
223 4104 E Mail: asiabike@asiabike.lk |
|
f. |
No. of
Employees |
: |
Approximately 375 |
COMPANY
DETAILS
Registration
and Shareholder Details
|
a. |
Registration No |
: |
N (PVS/PBS) 12880 |
||
|
Date of
Registration |
: |
20th April 1994 |
|||
|
b. |
Re-registration
No |
: |
PB 1373 |
||
|
Date of
Re-registration |
: |
3rd May 2010 |
|||
|
c. |
Registered Office |
: |
# 114, Galle Road, Henamulla, Panadura |
||
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d. |
Board of
Directors As At 14th October 2014 |
: |
M. F. Mohamed Isthiark |
Managing Director |
|
|
M. F. Mohamed Ifthikar |
Director |
||||
|
M. F. Mohamed Ilyas |
Director |
||||
|
Abdul Wadood Mohamed Farook |
Director |
||||
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e. |
Total No. of
Issued Shares |
: |
13,760,040 (Nos. other than cash =
9,400,040) |
3,440,010 (all shares other than cash) |
|
|
Total Value of
Shares |
|
Rs. 13,760,040.00 |
Rs. 40,764,118.50 |
||
|
f. |
Nominal Value of
Share |
: |
Not applicable vide Companies Act #7 of 2007. |
||
Registration
and Shareholder Details Cont…
|
h. |
Share
Holders As At 14th October 2014 |
: |
Share Holders |
No.
of Shares |
|
Abdul Wadood Mohamed Farook |
12,537,537 |
|||
|
M. F. Mohamed Ifthikar |
812,500 |
|||
|
M. F. Mohamed Ilyas |
1,037,500 |
|||
|
M. F. Mohamed Isthiark |
2,812,513 |
|||
|
i. |
Auditors |
: |
SJMS Associates, # 2, Castle
Lane, Colombo 02 |
|
|
j. |
Company
Secretaries |
: |
EMEM Associates (Pvt) Ltd, #11, Station Rd, Colombo 04 |
|
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k. |
Bankers |
: |
HSBC, Hatton National Bank PLC, Bank of Ceylon, Peoples Bank |
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Directors
Details
01)
|
Name |
M. F. Mohamed Isthiark |
|
ID Number |
613352791 V |
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Nationality |
Sri Lankan |
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Gender |
Male |
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Date Of Birth |
30th November 1961 |
|
Age |
53Years |
|
Address |
# 98, “Ilyas Mahal”, Galle Road, Henamulla, Panadura |
02)
|
Name |
M. F. Mohamed Ifthikar |
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ID Number |
591050060 V |
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Nationality |
Sri Lankan |
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Gender |
Male |
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Date Of Birth |
14th April 1959 |
|
Age |
55 Years |
|
Address |
# 98, “Ilyas Mahal”, Galle Road, Henamulla, Panadura |
03)
|
Name |
M. F. Mohamed Ilyas |
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ID Number |
601920140 V |
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Nationality |
Sri Lankan |
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Gender |
Male |
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Date Of Birth |
10th July 1960 |
|
Age |
55 Years |
|
Address |
# 98, “Ilyas Mahal”, Galle Road, Henamulla, Panadura |
04)
|
Name |
Abdul Wadood Mohamed Farook |
|
ID Number |
352233226 V |
|
Nationality |
Sri Lankan |
|
Gender |
Male |
|
Date Of Birth |
10th August 1935 |
|
Age |
80 Years |
|
Address |
# 98, “Ilyas Mahal”, Galle Road, Henamulla, Panadura |
FINANCIAL
DETAILS
Most
recent available Financial Information
We have
contacted the accounts division of the company to obtain financial information
and they declined to give us any
financial information as they insist to know the details of the end user.
It should be noted that the
particular industry segment the company is involved has very good
Growth potential and as such it
can be expected for the company to expect a good growth
Prospects
(Note:
Based on the corporate laws of Sri Lanka, legal entities which are Private
Company with Limited Liability are not
required to make public disclosure of their annual financials. Therefore no
financials are available for this entity)
CURRENT
INVESTIGATION
Company Logo
·
History.
The
Subject Company ASIABIKE INDUSTRIAL
LIMITED is a Public Limited Liability Company (not listed with Colombo Stock Exchange) incorporated on 20th April 1994 under
registration number N (PVS) 12880 and then the company was re-registered
on 03rd May 2010 under registration number PB 1373.
The
subject company is Board of Investments (BOI) Approved Company
The
subject company was earlier known as ASIABIKE
INDUSTRIAL (PRIVATE) LIMITED and was changed to read as ASIABIKE INDUSTRIAL LIMITED on 09th September 2005.
·
Location
The
Subject Company is located at the client # 114, Galle Road, Henamulla,
Panadura, Sri Lanka situated on the southern highway 1, 23 km south of the Colombo Port and 55 km
from the Airport.
·
Operations
Details.
General
The
subject company primary line of business is manufacture and exporting of mountain and all terrain bicycles in Sri
Lanka
With the
use of modern technology and a highly skilled workforce, the factory is
producing at full capacity at present. Capacity building and production
efficiencies have enabled Asiabike to increase production in the last 5 years
by 180%. The factory also has the capacity to produce 1500 bicycle in an 8 hour
shift. The average production at present is around 25,000 – 30,000 bikes a
month, the company states
Products
Mountain
and all terrain bicycles
Kids
Freestyle
BMX
MTB
Folding
Bikes
Trekking
Exporting
Country
United
Kingdom, Italy, France, Belgium, Netherlands, Germany, Finland and Russia
Greece, Holland, Japan to name a few
No of
Employees
Approximately
375
·
Trade
references
The National
Chamber of Exporters
Chamber of Commerce
Board of Investment of Sri
Lanka (BOI)
Achievements:
Subject company
states that they have achieved the following:
·
Obtained Merit Award – Extra
Large Category by the National Chamber of Exporters of Sri Lanka 2005
·
Achieved the Bronze Award - Extra
Large Category by the National Chamber of Exporters of Sri Lanka 2006
·
The International Chamber of
Commerce (ICC) recognized the efforts of Asiabike and felicitated the Managing
Director and the CEO, at the Felicitation Ceremony held on the 16th of October
2007, for the award winners of the National Chamber of Exporters. (NCE)
·
Achieved the Gold Award - Extra
Large Category by the National Chamber of Exporters of Sri Lanka 2007
·
SGS Factory Assessment - received
"A" Grade rating for both Environmental and Ethical Management as
well as Quality Assurance
·
Achieved the Silver Award - Extra
Large Category at the National Business Excellence Awards in 2010
·
Triumphed in achieving the Gold
Award - Large Category by the National Chamber of Exporters of Sri Lanka 2006
·
Accredited by the British
Standards institute (BSI) and the French Homologation Laboratory, which is an
additional testament to Asiabike's quality offering
Mortgaged Bonds of the subject
|
Date and Description of instrument creating Charges |
Amount |
Name, Address of Persons Entitled to the charges |
|
Primary Mortgage over the immovable assets
(Land Buildings, Plant Machinery) of the company at# 1114, Galle Road,
Henamulla, Panadura |
Rs. 114 Million |
People’s Bank Off Shore Banking Unit, Head Office
Building, # 75, Sir Chittampalam A Gardiner Mawatha, Colombo 02 |
|
Primary Mortgage Over Stocks and book
debts |
Rs. 20 Million |
National Development Bank Plc # 40, Nawam Mawatha, Colombo 02 |
ADVERSE
DATA MONITORING: subject Company
Unsettled Payment (Debt)
Our Debt
Recovery Dept has been unsuccessfully trying to arrive at a settlement of a debt owed by this company
to a supplier of bicycle parts from China for goods supplied over two years
ago. The company is not offering any cause for the non payment of the invoices
nor is it offering to make good the amount due. The value of the debt is in
excess of US $.47, 800.00
·
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
PARTED BY
|
Name : |
Mr. Prassana |
|
Designation : |
Accountant |
|
Contact No.: |
(00 94 38) 223 2327 |
|
Date : |
07.11.2015 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.79 |
|
UK Pound |
1 |
Rs.99.95 |
|
Euro |
1 |
Rs.71.55 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
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Analysis Done by
: |
RAS |
|
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Report Prepared
by : |
TRU |
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 |
|
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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 |
|
|
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 |
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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.