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| Sunday, 11 September 2005 |
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Sinhaputhra Finance records highest pre and post-tax profit The Sinhaputhra Finance Ltd, delivered a strong financial performance during 2004/2005 which is the highest ever pre-and post-tax profit of the company. Sinhaputhra made a profit on ordinary activities before tax of Rs. 53.4 million, a rise of 16.8 million or 45.9 percent, over 2003/2004. There was good growth in profit before tax across all the business divisions. Profit after tax at Rs. 51.8 million was up 53.5 percent. This increase was broad based and was a key driver of the company's strong performance Chairman Kithsiri Winigasekara said in his annual report. He said the company made a specific provision for bad and doubtful debts amounting to Rs. 44.1 million for the year which is in excess of the statutory requirement. The recoveries made out of specific provision made earlier, amounted to Rs. 14.1 million. The Directors transferred Rs. 5.7 million to the Statutory Reserve Fund and a further Rs. 25.0 million to the General Reserve. A sum of Rs.14.1 million is carried forward to the new financial year. The first Interim Dividend of 10 percent (Gross) for the year was paid on December 15, 2004 which was followed by a second interim dividend of 7.5 percent (Gross) paid on April, 8, 2005. The Directors have now recommended a third and final dividend of 7.5 percent (Gross) to be paid to shareholders. The total dividend for the year will thus be 25 percent (Gross) which will absorb Rs. 9.5 million approximately. The shareholders' funds of the company as at March, 31, 2005 increased to Rs. 207.9 million which is a 27.1 percent increase. The enhanced volume of operations that registered considerable growth paved the way for the company to increase its total assets by 34.8 percent to Rs. 1,952.3 million as at March, 31, 2005. The industry average is 23 percent. The intense competition that prevailed in the marketplace did not permit the company to register a heavy growth in public deposits as at end of March, 31, 2005 which stood at Rs. 1,106.8 million, a 22.3 percent increase in comparison to the industry average of 14 percent. Joint Managing Director Ravana Wijeratne said Sri Lanka's per capita GDP surpassed USD 1,000 for the first time, edging the nation ever closer to becoming an upper middle class income country. The combined strength of the Finance and Leasing industry of Sri Lanka now stands at 3.7 percent (Rs. 100 billion in assets) of the nation's financial system. Finance Companies account for Rs. 66.2 billion of those assets. In comparison the most significant of the group are the Commercial Banks with Rs. 1,161 billion (42.6 percent) whilst Insurance Companies have Rs. 72 billion (2.6 percent) in assets. He said the financial system of the nation has seen a faster growth in the Finance Company, Banking and Insurance sector as against the Primary Dealers, EPF, Merchant Banks thus increasing competition within those markets. |
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