MIRA INFORM REPORT

 

 

Report No. :

340600

Report Date :

19.09.2015

 

IDENTIFICATION DETAILS

 

Name :

TREADSDIRECT LTD

 

 

Formerly Known As :

TREADSDIRECT (PVT) LTD

 

ELGI RUBBER COMPANY LTD

 

 

Registered Office :

Block 9 & 10, Industrial Estate, Dankotuwa

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

21.02.1992

 

 

Com. Reg. No.:

PV 5736 PB

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Importer and Distributors of Rubber Tyres and Tubes.

 

 

No. of Employees :

Not Available

 

 

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

Basic information at a glance

     

a.

Name of Subject of Inquiry

:

 

TREADSDIRECT LTD

 

b.

Legal Form  & Status

:

Public Limited Liability Company – Not Listed Colombo Stock Exchange (In Operation)

c.

Managing Director

:

Sudarsan Varadaraj  (Indian)

d.

Primary Line of Business

:

Import & Distributors of Rubber Tyres & Tubes

e.

Head office

&

Place of Business

 

:

# 9, Industrial Estate,

Dankotuwa,

Sri Lanka.

 

Tel. No: (00 94 31) 2258060 / 225 9327

Fax. No: (00 94 31) 225 9327

 

E-mail: treadsdirect@sltnet.lk

f.

No. of Employees

:

Not Disclosed

                       

 

COMPANY DETAILS 

 

Registration and Shareholder Details

 

a.

Registration No

:

N(PVS) 8773         

Date of Registration

 

21st February 1992

b.

Re-registration No

:

 PV 5736 PB

Date of Re-registration

 

25th August 2008

c.

Registered Address

:

Block 9 & 10, Industrial Estate, Dankotuwa

d.

Board of Directors

As at

14th October 2014

:

Sudarsan Varadaraj (Indian)

Managing Director

Jairam Vardaraj (Indian)

Director

Samuel Yasmin Neelanganie (Ms)

Director

Venkatachalam Ramasamy (Indian)

Director

e.

Issued Share Capital

:

Ordinary Shares             

Preference Shares

Rs. 10,000,001.00

-Nil-

No. of Issued  Shares

:

1,000,001

-Nil-

f.

Nominal Value of Share

:

Not applicable vide Companies Act #7 of 2007

g.

 

Share Holders

As at

14th October 2014

:

Share Holders

No. Of Shares

Ordinary Shares

Preference Shares

Elgi Rubber Company Ltd (Incorporated in India)

1,000,000

-

Anton Roshan Fernando Kurukulasuriya

01

-

h.

Auditors

:

Ernst & Young

i.

Company Secretaries

:

Company Secretaries (Pvt) Ltd

k.

Bankers

:

State Bank of India

 

Directors Details

 

01)

Name

Sudarsan Varadaraj

PP Number

Z 1914394

Nationality

Indian

 

02)

Name

Jairam Varadaraj

PP Number

Z 1775381

Nationality

Indian

 

03)

Name

Samuel Yasmin Neelanganie

ID Number

417980857 V

Nationality

Sri Lankan

Gender

Female

Date Of Birth

24th October 1941

Age

73 Years

Address

#20, Edmonton Road, Colombo -6

 

04)

Name

Venkatachalam Ramasamy

PP Number

F 5471639

Nationality

Indian

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

Company declined to provide financials as they insisted on the identity of the client.

                                                                                                                                   

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 TREADSDIRECT LTD is a Public Limited Liability Company incorporated on 21st February 1992 under registration number N (PVS) 8773 and then the company was re-registered on 25th August 2008 under registration number PV 5736 PB.

 

The subject company is a subsidiary company of Elgi Rubber Company Ltd (Incorporated in India)

The subject company initially registered as Elgitread Lanka (Pvt) Ltd and the name changed on 22nd October 2008 to the Treadsdirect (Pvt) Ltd and again name changed to TREADSDIRECT LTD changed on 23rd January 2009.

          

It is a subsidiary of  Elgi Rubber Company Ltd (Incorporated in India)

                

Location.

 

The subject company is located at the client Block 9 & 10, Industrial Estate, Dankotuwa.

 

 

Operational Details.

 

General

 

The subject company primary line of business is Import & Distributors of Rubber Tyres & Tubes

 

Products

Rubber Tyres and Tubes

 

Country

India

 

Employees

Not Disclosed

 

 

Trade references

Export Promotion Board of Sri Lanka (EDB)

 

 

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. Prashant

Designation :

Operation Manager

Contact No.:

91-(009431)2258060

Date :

16.09.2015

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.93

UK Pound

1

Rs.102.75

Euro

1

Rs.75.13

 

INFORMATION DETAILS

 

Information Gathered by :

SUP

 

 

Analysis Done by :

RAS

 

 

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

 

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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