MIRA INFORM REPORT

Report No. :	346463
Report Date :	30.10.2015

IDENTIFICATION DETAILS

Name :	CREATIVE CYCLES (PVT) LIMITED
Registered Office :	# 101C, Phase 111, Export Processing Zone, Katunayake
Country :	Sri Lanka
Date of Incorporation :	23.09.2004
Com. Reg. No.:	PV 6018
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is manufacture and exporting of bicycles
No. of Employee :	Approximately 500

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 – 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
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 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	:	CREATIVE CYCLES (PVT) LIMITED
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director	:	Gan Shuyuan (Chinese)
d.	Primary Line of Business	:	Manufacture and Exporting of Bicycles
e.	Place of Business & Factory	:	# 101C, Phase 111, Export Processing Zone, Katunayake. Sri Lanka Tel. No: (00 94 11) 226 0380 / 226 0508 Fax No: (00 94 11) 226 0888 Email: osmund_creative@yahoo.com Contact Person: Osmund Comester Mobile: ( 00 94 77) 907 5773
f.	Employees	:	Approximately 500

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No	:	N (PVS) 39089
	Date of Registration	:	23^rd September 2004
b.	Re-registration No	:	PV 6018
	Date of Re-registration	:	01^st August 2008
c.	Registered Office	:	# 101C, Phase 111, Export Processing Zone, Katunayake
d.	Board of Directors As At 23^rd March 2015	:	Gan Shuyuan	Managing Director
f.	Issued Share Capital	:	Rs. 50,000,000.00
	Issued Share	:	5,000,000
g.	Nominal Value of Share	:	Not stated vide Companies Act #7 of 2007

Registration and Shareholder Details Cont…..

h.	Share Holders As At 23^rd March 2015	:	Share Holders	No. of Shares
			Gan Shuyuan	4,999,999
			Ji Anlong Chen	01
i	Auditors	:	P.E. Mathew & Company, #94-1/4, York Street, Col. 01
j.	Company Secretaries	:	Gamlath Secretarial Services (Pvt) Ltd, Galadari Hotel, #64, Lotus Road, Colombo 01
k.	Bankers	:	Not Disclosed

Directors Details

1)

Name	Gan Shuyuan
Pass Port Number	G22619920
Nationality	China

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, CREATIVE CYCLES (PVT) LIMITED is a private limited liability company incorporated on 29th September 2004 under registration number N (PVS) 39089, and then the company was re-registered on 01st August 2008 under re-registration number PV 6018.

Location

The Subject Company is located at # 101C, Phase 111, Export Processing Zone, Katunayake.

Operational Details

General

The primary line of business of the subject company is Manufacture and Export Bicycles.

Work Place

Products

Children’s Bike, Mountain Bike, City Bike, Freestyle BMX Bike, and accessories.

Company states that annual Production of Bicycles approx. 400,000

Brand Name

“CREAT BIKE”

Export Country

European Countries: France, Germany, Spain, Italy, Poland, UK.

European Customers Such as: Disney, Toys Rus, Auchan, Leclerc, careffour

No of Employees

Approximately 500

Trade references

Export Development Board (EDB)

Board of Investment (BOI)

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. Osmund Cemester
Designation :	Director
Contact No.:	009411-2260380

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.15
UK Pound	1	Rs.99.36
Euro	1	Rs.71.25

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	HEE
Report Prepared by :	ASH

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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