Home / Business/ Industrial Asphalts to transfer operations to subsidiary

Industrial Asphalts to transfer operations to subsidiary

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 6 March 2018 00:00

  • Signs 10 year lease of Peliyagoda property to Siam City Cement

Industrial Asphalts (Ceylon) PLC has announced plans to restructure the company, including transfer of operations to a fully owned subsidiary, from 31 March.

The Company’s operations focus on lines of coatings and bitumen activities, and would be taken over by a newly incorporated subsidiary, Industrial Asphalts Ltd. The parent would continue to own the Intellectual Property Rights of the brands of the products. The subsidiary would have a non-exclusive right to manufacture, distribute and market the products under brands owned by the parent. The parent will cease the manufacture, distribution and marketing operations of its traditional product range at the present location after close of business on 31 March and will be initially relocated at No 321 Negombo Road, Peliyagoda under the subsidiary company from 1 April.

To facilitate the transfer of business operations, the manufacturing plant would be transferred to the subsidiary at the current carrying value of the relevant assets. Where the management is of the view that certain plant and machinery are un-useable or it is not viable to relocate, then such items would be scrapped and disposed by the parent. Debtors outstanding at the time of transfer of business to the subsidiary will continue to be collected by the parent, and the new trade debts will be booked under the subsidiary. Carrying stocks would be sold to the subsidiary at open market prices, or would be sold to third parties.  Nine permanent staff under the parent will be seconded to the subsidiary.

Until the operations are self-funding, from time to time and when required, the parent would provide working capital finance to the subsidiary at commercial rates as an arm’s length transaction. Interest bearing liabilities and leases outstanding in the books of the parent would continue to be serviced by the parent, primarily from the cash flow arising from the rental income of the 10-year lease of the parent’s property at 28/1 New Nuge Road, Peliyagoda to Siam City Cement, subject to meeting the conditions precedents as per the agreement.

The major shareholder of the Company is G. Ramanan, holding 67%, whilst Dr. T. Senthilverl holds 6.55%.

For the nine months ended 31 December 2017, the Company’s revenue rose by 61% to Rs. 33 million and pre-tax loss was Rs. 13 million, as against Rs. 9.7 million loss a year earlier. The Company has Rs. 20 million in retained losses.

Share This Article


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit

Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi

The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation

Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc

Columnists More