MIRA INFORM REPORT

Report No. :	325891
Report Date :	17.06.2015

IDENTIFICATION DETAILS

Name :	ASTRON LIMITED
Registered Office :	688, Galle Road, Ratmalana
Country :	Sri Lanka
Financials (as on) :	31.12.2013
Date of Incorporation :	03.11.1993
Com. Reg. No.:	PB 78
Legal Form :	Public Limited Liability Company- Unlisted
Line of Business :	Subject is manufacturers, importers and distributors of pharmaceuticals
No. of Employee :	Approximately 600

RATING & COMMENTS

	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
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

NOTE

In absence of financials, no credit limit could be recommended.

GENERAL

Basic information at a glance

a.	Name of Subject of Inquiry	:	ASTRON LIMITED
b.	Legal Form & Status	:	Public Limited Liability Company- Unlisted (In Operation)
c.	Managing Director	:	Marise Bernadette Deckker
d.	Primary Line of Business	:	Manufacturers, Importers and Distributors of Pharmaceuticals
e.	Place of Business & Factory	:	# 688, Galle Road, Ratmalana, Sri Lanka Tel. No: (00 94 11) 263 6741 / 556 6741 Fax No: (00 94 11) 263 6173 / 556 6789 Email: astron@astron.lk sales@astron.lk
f.	No of Employees	:	Approximately 600

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No	:	N (PBS) 439
	Date of Registration	:	03^rd November 1993
b.	Re-registration No		PB 78
	Date of Re-registration		06^th December 2007
c.	Registered Office	:	# 688, Galle Road, Ratmalana, Sri Lanka.
d.	Board of Directors As At 01^st January 2015	:	Marise Bernadette Deckker (Ms)	Managing Director
			Harrin Dhammika Jayasekera	Director
			P.S. Ranjit Fernando	Director
			N. Shanthi Goonawardene (Ms)	Director
			Mohamed Farhad Cassim	Director
			D.A. Sanka Warna Athukorala	Director
			R. Michael De Zilwa	Director
			Johann Marlon De Zilwa	Director
e.	Issued Share Capital	:	Rs. 57,145,500.00
	Total No. of Shares	:	5,714,550
f.	Value of a nominal share	:	Not stated vide companies Act #7 of 2007

Registration and Shareholder Details (Contd..)

h.	Major Share Holders As At 01^st January 2015	:	Major Share Holders	No. Of Shares
			Marise Bernadette Deckker	2,948,860
			K. Manickavasagar	401,045
			A. Z. Fazeel	401,045
			H. D. Jayasekara	401,045
			H. L. De Mel	40
			Maurice Douglas de Zylva	05
			Astron Employee Share Trust: 1. Marise Bernadette Deckker 2. Ross Marlon De Zilwa	1,562,500
i.	Auditors	:	KPMG Ford Rhodes Thornton & Company, No: 32A, Sir Mohamed Macan Markar Mawatha, Colombo 03.,
j.	Company Secretaries	:	Kumarinio Nadisha Samarasekera (Ms), No:20A, Ratmal Mawatha, Sirimaluyana, Ratmalana.
k.	Bankers	:	HNB, HSBC, NDM, SEYLAN Bank PLC, DFCC Bank

FINANCIAL DETAILS

Most recent available Financial Information

			30^th November 2012 (12 months) Rs.	31^st December 2013 (13 Months) Rs.
A	Revenue	:	1,343,578,720	1,273,784,244
B	Cost of Sales	:	(738,040,241)	(707,785,001)
C	Gross Profit	:	605,538,479	565,999,243
D	Other Income	:	396,451	140,392
E	Administration Expense	:	(104,123,298)	(109,297,180)
F	Distribution Expense	:	(345,768,172)	(377,070,172)
G	Profit from Operations		156,043,460	79,772,283
H	Finance Expense	:	(2,880,781)	(7,470,210)
I	Net Profit / (Loss) before Tax	:	153,162,679	72,302,073
J	Taxation	:	(36,255,688)	(4,699,691)
K	Net Profit / (Loss) After Tax:	:	116,906,991	77,001,764

FINANCIAL DETAILS

Most recent available Financial Information (Cont/d….)

			30^th November 2012 Rs.	31st December 2013 Rs.
a)	Non-current Assets	:	504,037,794	531,360,881
b)	Current Assets	:	501,248,883	531,341,752
c)	Current Liability	:	208,051,697	229,298,779
d)	Non-current liability	:	144,463,331	153,632,754
e)	Total Liabilities	:	352,515,028	382,931,533
f)	Total Assets	:	1,005,286,677	1,062,702,633
g)	Net Worth	:	652,771,649	679,771,100

Directors’ Information

01)

Name	Marise Bernadette Deckker (Ms)
Gender	Female
Nationality	Sri Lankan
National ID No.	515422994V
Date of Birth	11^th February, 1951
Age	64 Years
Address	No: 43/36H, Pepiliyana Mawatha, Pepiliyana.

02)

Name	Harrin Dhammika Jayasekera
Gender	Male
Nationality	Sri Lankan
National ID No.	582541175V
Date of Birth	10^th September, 1958
Age	56 Years
Address	#Mount View residencies, 97/4/1, Galle Road, Kaldamulla, Moratuwa

03)

Name	P. Sirimal Ranjith Fernando
Gender	Male
Nationality	Sri Lankan
National ID No.	643040190V
Date of Birth	30^th October, 1964
Age	50 Years
Address	No 1/69, Seevali Mawatha, Willorawatte, Moratuwa

04)

Name	Nilani Shanthini Goonewardene
Gender	Female
Nationality	Sri Lankan
National ID No.	638660784V
Date of Birth	31^st December, 1963
Age	51 Years
Address	No:83/2, M J C Fernando Mawatha, Idama, Moratuwa.

05)

Name	Mohamed Farhad Cassim
Gender	male
Nationality	Sri Lankan
National ID No.	561670668V
Date of Birth	15^th June, 1956
Age	58 Years
Address	17, Samudrasanna Road, Mt. Lavinia.

06)

Name	D.A. Sanka Warna Athukorala
Gender	Male
Nationality	Sri Lankan
National ID No.	673530702V
Date of Birth	18^th December, 1967
Age	47 Years
Address	No:430/12, Bodiya Road, Thalahena, Malabe

07)

Name	Ross Michael de Zilva
Gender	Male
Nationality	Sri Lankan
National ID No.	780422262V
Date of Birth	11^th February, 1978
Age	37 Years
Address	No: 43/36H, Pepiliyana Mawatha, Pepiliyana

08)

Name	Johan Marlon De Zilwa
Gender	Male
Nationality	Sri Lankan
National ID No.	80334820V
Date of Birth	28^TH November 1980
Age	34 Years
Address	No: 2/5, Galpotta Road, Nawala

CURRENT INVESTIGATION

Company Logo

History

The Subject Company ASTRON LIMITED is a Public Limited Liability Company (Unlisted) incorporated on 03^rd November 1993 under registration number N (PBS) 439 and then company was re-registered on 06^th December 2007 under registration number PB 78 in terms of Companies Act #7 of 2007.

The subject company was previously known as ASTRON HOLDINGS LTD and changed to ASTRON LTD on 07^th April 1995.

The Company has been the successor to Dumex Limited incorporated in 1956 and operated

under the following names resulting from change in ownership of the majority Shareholding:-

1956 to 1958 - Dumex Limited - Ceylon

1958 to 1963 - Pfizer Dumex Limited - Ceylon

1963 to 1993 - Pfizer Limited - Sri Lanka

1993 to date - Astron Limited

Location

The Subject Company is located at the client No: 688, Galle Road, Ratmalana, approx. 10 kilo meters south of Colombo city.

Operational Details

General

The subject company primary line of business is manufacturing, Importing and Marketing of all types of Pharmaceuticals which are distributed islandwide to appointed dealers of the subject company.

The subject company has earned certifications such as ISO 22000, HACCP and ISO/IEC 17025:2005 certified by SLAB etc.

The subject company has their own marketing team to promote their products through Doctors, Dispensaries, Hospitals and Coordinating supplies to dealers.

The building complex of the subject company which include several units is very attractive and well maintained with regards to cleanliness, housekeeping and safety procedures.

The production plant is divided into four areas namely General Pharmaceuticals, Penicillin, Consumer and Animal Health. It has the infrastructure to produce tablets, capsules, liquids, suspensions, powders, ointments and creams to international standards.

Products

Antibiotics

Cough preparation

Anti inflammatory

Antibiotic

Anthelmintic

Vitamins

Minerals

Antihistamine

Anti acne preparation

Anti diabetic

Analgesic and antipyretic etc…..

Quality Accreditations:

Brands

Astron Pharmaceuticals:

The therapeutic groups manufactured locally comprise of vitamins and minerals, antitussives, bronchodilators, antibiotics, anthelmintics, antihistamines, analgesics, antipyretics, anti-acne agents, anti-fungal agents, anti-diabetics, anthi-hypertensives, lipid regulators and corticosteroids

Astron Consumer

Astron Consumer division is committed to add life & vitality to many individuals through the provision of a wide array of products targeting the geriatric, active adults, adolescents, children, sports persons and even the health and beauty conscious

Astron Animal Health

Locally manufactured animal health products are primarily for the poultry and cattle industries. The well established and known brands marketed by Astron Animal Health are Layer Premix B, Starter Premix B, Aminol, Vita-Stress, Layer Premix C, Neo-Tetra, Poultry B and Sulfaquinoxaline

Astron also imports and markets a wide range of veterinary pharmaceutical products from Dutch Farm International - Netherlands.

As claimed by the company, the latest addition to their product portfolio is ORALEEZ, the fast acting gel for mouth ulcers. The active ingredients in ORALEEZ are Choline Salicylate & Cetalkonium Chloride. This Sugar Free gel is recommended for Mouth Ulcers, Denture Irritations and Cold Sores. ORALEEZ has a unique "Triple Action control" - Antiseptic (kills germs), Analgesic (reduces pain), Anti inflammatory (reduces swelling).ORALEEZ is available in the market in a pack size of 10g.

Import Countries

India, USA and Netherlands.

Suppliers:

Organics Ltd- Israel -Urine Analysis Test Strip For Glucose & Other Para.

Dutch Farm International, Netherlands- Veterinary products such as proteins, drugs for

Animals

Customers: Ministry of Health, Colombo – drugs and devices

Ministry of Livestock Development, Colombo 03 – Animal & Poultry drugs, Vitamins etc.

National Livestock Development Board, Colombo 5. - Animal & Poultry drugs,

Vitamins etc.

Private hospital such as Asiri, Lanka, Navaloka etc.

No of Employees

Approximately 600

Financial Data

Data received from Subject Company’s annual report 2013 is included

Trade references

Astron is a member of the following associations:-

Sri Lanka Pharmaceutical Manufacturers Association - founder member

Sri Lanka Chamber of Pharmaceutical Industries - founder member

Sri Lanka Poultry Industry Association

Ceylon Chamber of Commerce

Employers Federation of Sri Lanka

American Chamber of Commerce of Sri Lanka

Industrial Association of Sri Lanka

Sri Lanka Maldives Bilateral Business Council

Sri Lanka China Business Council

Credit Recommendations

Market Reputation:

No adverse data found

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. Binesh
Designation :	Accountant
Contact No.:	0009411-2636741 / 5566741

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.15
UK Pound	1	Rs.100.04
Euro	1	Rs.72.27

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	RAS
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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