MIRA
INFORM REPORT
|
Report Date : |
07.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
STATE PHARMACEUTICALS CORPORATION OF SRI
LANKA |
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|
|
|
Registered Office : |
# 75, Sir Baron Jayatillake Mawatha, Colombo
01 |
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Country : |
Sri Lanka |
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Date of Incorporation : |
21.09.1971 |
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Legal Form : |
State Owned
Corporation (In Operation) |
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Line of Business : |
Importers, Distributors & Suppliers of
Pharmaceutical products. |
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|
|
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No of Employees : |
Approximately 600 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
No Complaints |
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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 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 (LTTE). 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. Growth slowed to 3.5% in 2009. Economic activity rebounded
with the end of the war and an IMF agreement, resulting in two straight years
of 8% growth in 2010-11. Growth moderated to about 6% in 2012. 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. Strong
remittances from Sri Lankan workers abroad have helped to offset the trade
deficit.
|
Source
: CIA |
GENERAL - Basic information at a glance
|
a. |
Name of Subject of Inquiry |
: |
STATE
PHARMACEUTICALS CORPORATION OF SRI LANKA
|
|
b. |
Legal Form & Status |
: |
State Owned Corporation (In Operation) |
|
c. |
Chairman |
: |
Prof. S.D.
Jayaratne |
|
d. |
Primary Line of Business |
: |
Importers, Distributors & Suppliers of Pharmaceutical products. |
|
e. |
Head Office & Place of Business |
: |
# 75, Sir Baron Jayatillake Mawatha, Colombo-01, Sri Lanka. Tel. No: (00 94 11) 232 0356 – 9 Fax No: (00 94 11) 244 7118 (General) (00 94 11) 244 6204 (Chairman) (00 94 11) 254 2787 (MD) (00 94 11) 243 2109 (GM) E mail: info@spc.lk Whole Sales Unit & Stores: 109, Kandawala Estate, Ratmalana, Sri Lanka.
Fax : +94 (0)11 2632962, 2624723 |
|
f. |
No. of Employees |
: |
Approximately
600 |
COMPANY DETAILS
Registration and Shareholder Details
|
a. |
Date of
Registration |
: |
Established on
September 21,1971 under the State Industrial Corporations Act No. 49 of 1957 as a state owned
business Undertaking. |
||
|
b. |
Registered
Office |
: |
# 75, Sir Baron Jayatillake Mawatha, Colombo 01 |
||
|
c. |
The Top
Management of the Corporation |
: |
Hon. Maitripala
Sirisena |
Minister of
Health Care & Nutrition |
|
|
Hon. Lalith Dissanayake |
Deputy Minister
of Health Care & Nutrition |
||||
|
Dr. Y.D. Nihal Jayathilaka |
Secretary |
||||
|
Dr. P.G. Mahipala |
Director General
Of Health Services |
||||
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Prof. S.D.
Jayaratne |
Chairman |
||||
|
R.L.
Dharmatilleka |
Managing Director |
||||
|
K.M.D.R. Dassanayake |
General Manager |
||||
|
e. |
Auditors |
: |
Auditor
General’s Department – Government of Sri Lanka |
||
|
f. |
Bankers |
: |
Bank of Ceylon, People’s Bank,
Commercial Bank, Standard Chartered Grindlays Bank
|
||
FINANCIAL DETAILS
Most recent available
Financial Information
The subject is a Government owned business
venture, and financial are not published/ available.
CURRENT INVESTIGATION
Company Logo
· History
The Subject
Company, STATE PHARMACEUTICALS
CORPORATION OF SRI LANKA, was established on September 21, 1971 under the
State Industrial Corporations Act No. 49 of 1957 as a state owned business
undertaking. The subject company is under the perview of the Ministry of
Health Services of Government of Sri Lanka
This far-sighted decision was the result of
the Bibile - Wickramasinghe Report (March 1971) on an assignment given to them
by the then Prime Minister, Hon Sirimavo Bandaranaike with a view to supply
quality pharmaceutical & connected items to peoples at a reasonable price
and also to effect quality control.
· Location
The Head Office of
the Subject Govt. Corporation is located at the client # 75, Sir Baron
Jayatillake Mawatha, Colombo 01.
· Operational Details.
General
The subject
company primary line of business is to act as Importers, Distributors & Dealers in pharmaceutical products.
State Pharmaceuticals
Corporation (SPC) is the MAJOR importer of healthcare items to the
Medical Supplies Division of the Ministry of Health, which in turn
supply these items to all government hospitals.
Main Activities of
the STATE PHARMACEUTICALS CORPORATION OF SRI
LANKA is:
o
Import, purchase, sales & distribution of
Pharmaceuticals and Health Care Items in the open market
o
Import & supply pharmaceuticals and health care
items to the department of health services
o
Manufacturing and marketing “Jeewani”, Glucose
& Benzyl Bensovate Cream
o
Providing medical tests and laboratory services
Laboratory facilities:
ü Tender Samples:
All Tender samples submitted are tested for quality.
ü Pre-Marketing
Quality Assurance: All batches of bulk consignments are tested by Random
sampling before release to the market. Further, manufacturers' analytical Certificates for each
and every batch are checked at the Technical Department for Compliance with
BP/USP standards.
ü Post- Marketing Quality Assurance: This is performed by drawing random
Samples from the stocks already issued to the market.
SPC is the sole supplier of pharmaceuticals, surgical
consumable items, laboratory chemicals amounting to about 2000 varieties to all
institutions under the Ministry of Health. The general public are served
through well established island wide network. The subject company is having
about company-owned 20 OSU Salas (Sales Centres) and over 100 franchise
dealers and distributors island wide. SPC items are available at every Pharmacy
shops.
Products
Pharmaceuticals,
surgical consumable items, laboratory chemicals and equipment
Brands
“SPC”
The STATE PHARMACEUTICALS CORPORATION OF SRI
LANKA procures through an open competitive tender procedure and supplies
drugs and other health care products to all the government hospitals in the
country through the Ministry of Health.
It also supplies the private sector and the general through their island
wide network of Rajya Osu Salas, Franchise Osu Salas and distributors.
Importing
Countries:
World wide
Further, the drugs
which are manufactured in Sri Lanka by the State
Pharmaceutical
Manufacturing Corporation, the sister
organisation under the Ministry of Health are also
Distributed and
sold through the State Pharmaceutical
Corporation outlets.
No of Employees
Approximately
600
·
Financial Data
Subject is a Govt.
owned business undertaking. Information on its finances not yet published.
·
Trade
Reference
Department of
Health Services of Government of Sri Lanka
·
Credit
Recommendations
The Subject
company/Corporation is a fully government owned organisation.
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.
ANALYSIS - Appraisal of Subject
Company
|
Rating: |
|
|
a) Business Scale |
Large business
undertaking of the Govt. |
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b) Business Trend |
Steady/Expanding |
|
c) Management
Capability |
Above Average |
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d) Commercial
Morality |
Above Average |
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e) Reputation |
Above Average |
|
f) Market Situation |
Competitive |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.50 |
|
|
1 |
Rs. 101.91 |
|
Euro |
1 |
Rs. 84.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.