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MIRA INFORM REPORT
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Report No. : |
504889 |
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Report Date : |
21.04.2018 |
IDENTIFICATION DETAILS
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Name : |
STATE PHARMACEUTICALS
CORPORATION OF SRI LANKA |
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Registered Office : |
No 75, Sir
Baron Jayathilaka Mawatha, Colombo 01 |
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Country : |
Sri Lanka |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
21.09.1971 |
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Legal Form : |
Corporation (State Owned) |
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Line of Business : |
Producer,
Importer & Distributor of Pharmaceutical and healthcare products and
equipment. |
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No. of Employees : |
Approximately
900 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
SRI LANKA - ECONOMIC OVERVIEW
Sri Lanka is attempting to sustain economic growth while maintaining macroeconomic stability under its IMF program that it began in 2016. The government's high debt payments and bloated civil service cadre, which have contributed to historically high budget deficits and low tax revenues, remain a concern. Government debt is about 75% of GDP and remains among the highest of the emerging markets. Sri Lanka will need to balance its elevated debt repayment schedule with its requirement to maintain adequate foreign exchange reserve levels in the coming years.
In May 2016, Sri Lanka regained its preferential trade preferences under the European Union’s Generalized System of Preferences Plus (GSP+), enabling many of its firms to export products, including it top export garments, tax free to the EU. Also in 2016, the government reformed elements of the country’s tax regime to increase some tax rates and broaden the tax net in response to recommendations made under its IMF program.
Tourism has experienced strong growth during recent years following the resolution 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.
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Source
: CIA |
Company
Profile
BASIC INFORMATION
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a. |
Name of Subject of Inquiry |
State Pharmaceuticals
Corporation of Sri Lanka |
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b. |
Legal Form & Status |
Corporation (State Owned) |
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c. |
Chairman |
Mr Sarath Liyanage |
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d. |
Primary Line of Business |
Producer, Importer &
Distributor of Pharmaceutical and healthcare products and equipment |
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e. |
Principal Place of
Business |
No 75, Sir Baron
Jayathilaka Mawatha, Colombo 01 Sri Lanka. Tel. No: (00 94 11)
2320356 - 9 Fax. No: (00 94 11) 2447118 E-Mail : chsec@spc.lk / spcmd@spc.lk Web
Site:
http://www.spc.lk/ |
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f. |
Employees |
Approximately 900 |
Company
Details
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a. |
Registration No |
Established on September
21, 1971
under the State Industrial Corporations Act No. 49 of 1957 as a state owned
business Undertaking. |
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Date of Registration |
21st September
1971 |
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b. |
Re-registration No |
NA |
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Date of Re-registration |
NA |
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c. |
Registered Office |
No 75, Sir Baron
Jayathilaka Mawatha, Colombo 01 Sri Lanka. |
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d. |
Board of Directors As At 31st
March 2017 |
Hon. Rajitha Senaratne |
Minister of Health Care
& Nutrition |
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Hon Faizal Cassim |
Deputy Minister |
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Hon. Hassan Ali |
State Minister of Health
Care & Nutrition |
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Mr Janaka Sugathadasa |
Secretary |
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Dr. Anil Jayasinghe |
Director General Of Health
Services |
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Sarath Liyanage |
Chairman |
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Dr. M.H.M. Rumie |
Managing Director |
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K.M.D.R. Dassanayake |
General Manager |
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Mr S R Rajapaksha |
Chief Financial Office |
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e. |
Issued Share Capital |
NA |
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f. |
No. of Shares |
NA |
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g. |
Preferential Shares |
NA |
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h. |
Nominal Value of Share |
NA |
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i. |
Auditors |
Auditor General's Department - Government
of Sri Lanka |
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j. |
Company Secretaries |
NA |
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k. |
Main Bank/s |
Bank of Ceylon, Peoples Bank, Commercial
Bank of Ceylon, Standard Chartered Bank |
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Shareholders
- NA
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NO. |
NAME |
NUMBER OF SHARES |
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1. |
- |
- |
FINANCIAL
DETAILS
- Most recent available Financial Information
• Please note that we are not in possession of
the current financials as they have not published the financials since 2015
year ending at 31st December 2017.
CURRENT
INVESTIGATION
COMPANY LOGO
•
HISTORY
The State
Pharmaceuticals Corporation was established in 1971 under the State Industrial
Corporations Act Number 49 of 1957. This far-sighted decision was the result of
the report submitted by Prof. Senaka Bible and Dr. S.A. Wickramasinghe report
(March 1971) based on an assignment given to them by the then Prime Minister,
Mrs. Sirimavo Bandaranaike.
Going
by the vision of its founding father Professor Senaka Bibile, the State
Pharmaceuticals Corporation (SPC) has at all times striven to provide quality
assured drugs at prices that are reasonable in the market. For the past 40
years SPC has been the sole supplier of pharmaceuticals, surgical consumable
Items, laboratory chemicals and equipment to all institutions administered by
the health ministry.
Caption
The
State Pharmaceuticals Corporation (SPC) a state-owned enterprise will once
again record a profit in the excess of Rs.1.9 billion by end of 2017 said its
Chairman, Sarath Liyange.
In
an interview with Daily News business he however said that the profit was
around Rs.2.5 billion in 2016. "We will fall short of previous year profit
due to the lowering of prices of some of the essential pharmaceutical items by
the government this year."
He
said that the corporation in the last two years has made a remarkable
turnaround emerging as a profit making organization. SPC set up in 1974 is the
largest supplier of drugs in the country, and is tasked with providing
quality-assured health care items that are safe and effective, at an affordable
price, while educating the public on the rational use of drugs. It also
employees about 600 staff. "I am ashamed to admit that SPC was branded as
a one of the most corrupt state owned entities and we have now changed and this
is one of the main reasons for the organization to be making profits once
again."
He
also said that with quality drugs SPC once again won confidence and also
regained back its market share and has opened new outlets to reach out to the
masses. "We are also moving some of the Osu Sala outlets to our own premises,
which are better locations and this too will cut costs and bring in more
business."
Liyanage
said that they have decided to stop all medical drug imports to the country by
2020."To meet this objective we have tied up with both local and foreign
Pharmaceutical manufacturing companies to set up their factories in Sri Lanka.
We have given them a buy back grantee and pharmaceutical companies have already
set up two of the region's largest manufacturing plants in Horana and Koggala.
They are also allowed to import tax free and this is encouraging more companies
to come and start factories in Sri Lanka."
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OPERATIONAL DETAILS
General
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Importing and Trading
of Pharmaceuticals and health care items.
·
Supplying of
Pharmaceuticals and health care items to the Department of Health services.
(DHS).
·
Manufacturing some
pharmaceuticals and health care items.
·
Eg. Jevanee, Glucose.
Products
Finished Pharmaceuticals
Surgical Devices
Pharmaceutical Raw Materials
Laboratory Equipment
Chemicals
Sole Importers of Health
Care Products for the Government of Sri Lanka
Employees
Approximately 900
Associate Organizations
Ministry of Health -
http://www.health.gov.lk/
State Pharmaceutical
Manufacturing Corporation - http://www.spmclanka.lk/
Cosmetics, Devices &
Drug Regulatory Authority - http://www.cdda.gov.lk/
Import
Mainly India and other Asian
Countries along with worldwide imports of specific items.
Warehousing & Sales
Units
Sales Unit-Ratmalana:
•, 109, Kandawala
Estate,Ratmalana, Tel.+94-(0)11-2632288,2624722, Fax.+94-(0)11-2632962,2624723
Stores Complex-Ratmalana:
•, 109, Kandawala
Estate,Ratmalana, Tel.+94-(0)11-2634318,2636715, Fax.+94-(0)11-2636715
ORS Unit-Ratmalana:
•, 109, Kandawala
Estate,Ratmalana, Tel.+94-(0)11-2622334
Divisional Stores-Kandy:
•, 10/B/1, Hewaheta
Road,Tennekumbura,Kandy, Tel.+94-(0)81-2240274, Fax.+94-(0)81-2240274
Information
declined
MANAGEMENT
NON CO-OPERATIVE
Contact No.: (00 94 11) 2320356-9
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.02 |
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1 |
INR 92.73 |
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Euro |
1 |
INR 81.46 |
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LKR |
1 |
INR 0.42 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Information
Gathered by : |
SVT |
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Analysis Done by
: |
NIY |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.