MIRA INFORM REPORT

 

 

Report Date :

07.03.2014

 

IDENTIFICATION DETAILS

 

Name :

GLAXO WELLCOME CEYLON LTD

 

 

Registered Office :

# 121, Galle Road,  Kaldemulla,  Moratuwa

 

 

Country :

 Sri Lanka

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

19.12.1956

 

 

Com. Reg. No.:

PBS 339

 

 

Legal Form :

Public Limited Liability Company 

 

 

Line of Business :

Manufactures and Distributors of Pharmaceuticals and Infant Milk foods.

 

 

No. of Employees :

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 :

No Complaints

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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. 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

 

Source : CIA

 

 

 

 

Company name and address

 

a.

Name of Subject of Inquiry

:

GLAXO WELLCOME CEYLON LTD

b.

Legal Form  & Status

:

Public Limited Liability Company  (In operation)

c.

Managing Director

 :

S. Anthony Chapman

d.

Primary Line of Business

:

Manufactures and Distributors of Pharmaceuticals and Infant Milk foods.

e.

Place of Business

&

Factory

:

 

# 121, Galle Road,

Kaldemulla,

Moratuwa

 

Tel. No: (00 94 11) 263 8720 / 263 6341 - 2

Fax No: (00 94 11) 262 2574 / 263 2929

 

E-mail: stuart.a.chapman@gsk.com

 

f.

Employees

:

Approximately 500

 

COMPANY DETAILS 

 

Registration and Shareholder Details

 

a.

Registration No

:

PBS 339

Date of Registration

:

19th  December 1956

b.

Re-registration No

:

PB 542

Date of Re-registration

:

21st   August 2008

c.

Registered Office

:

 

# 121, Galle Road., Kaldemulla, Moratuwa

 

d.

Board of Directors

As At

08th  August 2013

:

S. Anthony Chapman

Managing Director

G. M. M. A. Rajeeve Perera

Director

Hasit Joshipura

Director

S. Manohari Rajapakse

Director

e.

Auditors

:

PriceWaterHouseCoopers

f.

Company Secretaries

:

Sandhya Manohari Rajapakse

g.

Bankers

:

Deutsche Bank AG

Hongkong & Shanghi Banking Corporation Limited

Standard Chartered Bank

Seylan Bank

COMPANY DETAILS 

 

Registration and Shareholder Details (Cont/d….)

 

h.

Issued Share Capital

:

Rs.       54,675,000.00

i.

Nominal Value of Share

:

Rs.                     10.00

j.

Share Holders

As at

08th  August 2013

:

 Share Holders

No of Shares

Smithkline Beechman (Pvt) Ltd ( Sri lanka )

5,467,494

Wellcome Ltd ( England)

01

Eskay Lab Ltd ( England)

01

Smithkline Beecham Nominees Ltd  (England)

01

Edinburgh Pharmaceutical Industries Ltd

(Scotland)

01

The Wellcome Foundation Ltd  (England)

01

Glaxo Group Ltd ( England)

01

 

 

 

Director Details

 

Name

S. Anthony Chapman

PP Number

N 1902354

Nationality

Sri Lankan

Gender

Male

Address

50,9/5 Suvisuddharama Road, Colombo 06)

 

02)

Name

G. M. M. A. Rajeeve Perera

PP Number

N 1923040

Nationality

Sri Lankan

Gender

Male

Address

No.375, Dilmah Homes, Pothuarawa Road, Akuregoda, Battaramulla

 

03)

Name

Hasit Joshipura

PP Number

FB 293216

Nationality

Indian

Gender

Male

Address

501 Harihar Niwas 420-15th Road , Khar, Mumbai

 

04)

Name

S. M. Rajapaksha

PP Number

N 2250460

Nationality

Sri Lankan

Gender

Male

Address

No.91/17B, Watarappola Road, Mt. Lavinia

 

 

FINANCIAL DETAILS

 

 Most recent available Financial Information

                 

                                               

Income Statement

 

as at 31st December 2012

 

(All Amounts in Sri Lanka Rupees)

 

31-12-2012

Rs.

31-12-2011

Rs.

A

Revenue

:

1,742,771,958

1,496,762,145

B

 Cost of Sales

:

(1.238,471,466)

(889,081,324)

C

 Gross Profit

:

504,300,492

607,680,821

D

Other Income

:

27,540,395

7,500

E

Distributions Costs

 

(301,710,207)

(325,269,696)

F

Administrative Expenses

:

(137,793,598)

(82,275,153)

G

Operating  Profit

:

92,337,082

200,143,472

H

Finance Income Net

:

(83,439,773)

(2,679,279)

I

Profit Before Tax

:

8,897,653

197,464,193

j

Income Tax (expenses)

:

(4,209,653)

(48,388,840)

K

Profit After Income Tax

:

4,688,120

149,075,353

 

 

FINANCIAL DETAILS 

 

Most recent available Financial Information (Cont/d…)

 

Balance Sheet as at 31st December 2012

 

(All Amounts in Sri Lanka Rupees)

 

31-12-2012

Rs.

31-12-2011

Rs.

a)

Non-current Assets

:

274,524,003

334,264,130

c)

Current Assets

:

1,067,853,313

1,169,712,576

d)

Total Assets

:

1,342,377,316

1,503,976,706

e)

Non-current liability

:

61,711,910

60,510,896

f)

Total Liabilities

:

834,695,244

1,000,982,706

g)

Current Liability

:

772,983,334

940,471,859

h)

 

Net Worth

 

:

507,682,072

502,993,952

 

 

 

CURRENT INVESTIGATION

 

History.

The Subject Company GLAXO WELLCOME CEYLON LTD is a Public Limited liability Company (Not listed with Colombo Stock Exchange) incorporated on 19th December 1956 under registration number PBS 339 and then the company was re-registered on 21st August 2008 under registration number PB 542

 

The Subject Company was initially incorporated as a GLAXO CEYLON LTD and then changed the name to GLAXO LABORTORIES CEYLON LTD and then changed the name to GLAXO ALLENBURYS CEYLON LTD and again changed the name to GLAXO WELLCOME CEYLON LTD.

The subject company was incorporated as a private limited liability company on 1956 and then converted to a public limited liability company listed on Colombo Stock Exchange in 1963 and then again withdrawn from public listing on the Colombo Stock Exchange in 2004.

 

Location.

 

The Subject Company is located at the client given address # 121, Galle Road, Kaldemulla, Moratuwa.

 

Operational Details.

 

General

                  The subject company primary line of business is Manufactures and Distributors of Pharmaceuticals and Infant Milk foods

 

Products

Anti-Ulcerants, respiratory products , systemic Antibiotics , Anti – Virals , Dermatologicals, Anti –Emetics, Cough and Cold preparations , Analgesics , and Vitamin / Mineral supplements

 

 

Import Countries

India, Europe, Pakistan, China, USA, Australia

 

No of Employees

Approximately 500

 

Financial Data

 

 Financial received from company roc

                        

 

Trade references

 

The Council for Business in Britain

Sri Lanka Chamber of Pharmaceutical Industry

 

 

Credit Recommendations

 

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.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.32

UK Pound

1

Rs.102.54

Euro

1

Rs.84.19

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.