Annual Report.CDR - Colombo Stock Exchange

More documents

Recommendations

Info

R E V I E W O F O P E R AT I O N S The Company Performances As a result of decline in demand for new credit facilities and current depression in real estate market, the net revenue of the Company decreased to Rs. 5.2 billion in 2009/10 from Rs. 10.6 billion in 2008/09. The interest income of the Company declined by 43 percent during the year under review mainly due to decline in new credit facilities to compensate the depletion of current facilities. The interest expense for the same period decreased by 27 percent mainly due to the reduction of deposit rate in line with reduction in Treasury Bill rates and decrease in borrowings rates. Movement in Treasury Bill Rate (3 months) 25 20 15 10 5 0 2005 2006 2007 2008 2009 Real Estate The real estate and housing projects balance stood at Rs. 6.8 billion mainly due to the depression in real estate market. Public Deposits The Company sustained its market leadership in holding a largest public deposit base in the non banking financial sector in the year under review. This reflects the customers' continued confidence in the Company. But with the collapse of some unauthorized financial institutions which created a loss of confidence among deposit holders, the Company experienced high deposit withdrawals during the year thus reducing the public deposit balance by 5 percent for the year ended 2009/10 to Rs. 25.7 billion from Rs. 27.1 billion for the year ended 2008/09. Public Deposits (Rs. Mn) 30000 25000 20000 15000 10000 5000 0 31-03-2005 31-03-2006 31-03-2007 31-03-2008 31-03-2009 31-03-2010 Assets and Liabilities The total assets of the Company decreased by 25 percent to Rs. 27.5 billion as at end 2009/10 from Rs. 36.7 billion as at end 2008/09 mainly due to the decline in new facilities and depletion of current facilities. The liabilities declined by 14 percent to Rs. 30.4 billion as at end 2009/10 from Rs. 35.2 billion as at end 2008/09. Decrease in public deposits and borrowings contributed mainly to the reduction. Hire Purchase and Leasing The loan portfolio on hire purchase and leasing as at end 2009/10 showed a decrease of 47 percent to Rs. 5.5 billion compared to previous year end due to decline in new facilities thus failing to accommodate depletion of current facilities. Income Distribution (Rs. Mn) 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Hire Purchase Leasing Real Estate Others 2008/09 2009/10 Collections During the year under review, the Company's non performing loan portfolio increased to 29.86 percent in end 2009/10 from 14.34 percent in end 2008/09 owing to the depletion of performing loan portfolio including real estate financing. Further a loan loss provision of Rs. 594 million was made for the year 2009/10 (Rs. 635 million in the year 2008/09) in complying with Central Bank directions No. 1 of 1991. Future Prospects With the opening up of North and East sectors after end of three decades of civil war, a significant boom in the tourism sector, maintaining of downward trend in interest rates by CBSL, gradual building of confidence amongst public on the financial sector and reduction in inflation rate, the Company forecasts an increase in demand for financial and real estate products in the future. T H E F I N A N C E C O . P L C - A N N U A L R E P O RT 2 0 0 9 - 2 0 1 0 07
R E P O RT O F T H E D I R E C T O R S The Directors have pleasure in presenting to the shareholders their Report together with the Audited financial statements of the Company for the year ended 31 st March 2010. The report contains the disclosures required to be made by the Companies Act 7 of 2007 and the listing rules of the Colombo Stock Exchange. The Company was incorporated as a Public Limited Liability Company in Sri Lanka on May 1940 th and was re-registered under the Companies Act No 7 of 2007 on 4 June 2007. The Company's Re- Registration Number is PQ 1. PRINCIPALACTIVITIES Financing and Real Estate business continued to be the principal activities of the Company. REVIEW OFOPERATIONS Review of operations is given on pages 06 to 07 of theAnnual Report. PROFITSANDAPPROPRIATIONS st The following is an extract of the Profit and LossAccount for the year ended 31 March 2010 2009/2010 (Rs) 2008/2009 (Rs) Net profit before Taxation (4,285,937,282) (2,563,400,716) Less: Provision for Taxation on the profits for the - - year Net Profit after Taxation (4,285,937,282) (2,563,400,716) Less Unappropriated loss brought forward (2,671,806,920) (108,406,204) Amount available for appropriation (6,957,744,202) (2,671,806,920) Your Directors recommend the following appropriations - - Transfer to Reserve Fund Transfer to General Reserve - - First and Final Dividend (Gross) - - Total appropriation - - ¤ Balance to be carried forward (6,957,744,202) (2,671,806,920) T H E F I N A N C E C O . P L C - A N N U A L R E P O RT 2 0 0 9 - 2 0 1 0 08
Page 2 and 3: C O N T E N T S Financial Highlight
Page 4 and 5: C O R P O R AT E I N F O R M AT I O
Page 6 and 7: K E Y E X E C U T I V E S M E S S A
Page 10 and 11: R E P O RT O F T H E D I R E C T O
Page 12 and 13: R E P O RT O F T H E D I R E C T O
Page 14 and 15: C O R P O R AT E G O V E R N A N C
Page 16 and 17: STATEMENT OF DIRECTORS RESPONSIBILI
Page 18 and 19: TELEGRAM: ASSETS, COLOMBO E-MAIL- t
Page 20 and 21: BALANCE SHEET AS AT 31.3.2010 31.3.
Page 22 and 23: CASH FLOW STATEMENT FOR THE YEAR EN
Page 24 and 25: S I G N I F I C A N T A C C O U N T
Page 32 and 33: NOTES TO THE FINANCIAL STATEMENTS F
Page 34 and 35: NOTES TO THE FINANCIAL STATEMENTS (
Page 58 and 59:
S H A R E H O L D E R I N F O R M A
Page 60 and 61:
B R A N C H N E T W O R K AMBALANTO
Page 62 and 63:
S E RV I C E C E N T R E S Maharaga
Page 64 and 65:
F O R M O F P R O X Y I/We………
show all

Annual Report.CDR - Colombo Stock Exchange

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?