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| Sunday, 15 January 2006 |
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Business |  |
| News Business Features Editorial
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ETI
reorganisation boosts all-round performance
by L. S. A. Wedaarachchi Edirisingha Trust Investment Ltd (ETI), an established finance company with more than 36 years service underwent dramatic changes last year in the spheres of product portfolio and general management. ETI was reorganised early 2004 with the appointment of the new CEO Mahendra De Silva, a Chartered Accountant and MBA holder of PIM - Sri Jayawardenapura University. He has implemented a business strategy that is focused on high growth opportunities and specific units. The new product lines such as Leasing and Hire Purchase, Real Estate, Property Development and Trade Finance were launched last year. The last financial year was a year of special significance and the result of the new action plan was clearly evident, said a spokesman for ETI. "Over 50 percent growth was recorded in after Tax Net Profits amounting to Rs. 32 million compared to Rs. 20 million at the previous year. This is more encouraging to hear as the changes the new CEO had to bear. The changes included not only addition to product portfolio but scrapping of a hitherto engaged business line of pawning of consumer durables, he said. "This decision was taken after a careful examination of the business line which was thought to be very profitable. The other important decision taken by the company was to improve the accounting system according to the present day needs. Steps were taken to respond to the need to incorporate division wise profit centre basis as against the total centralised accounting methodology. Overall net interest income has gone up to Rs. 205 million from Rs. 86 million in 2003/04 which is a phenomenal 138 percent increase. Incorporation of a companywide budgetary control system which was not there in the past was another major step taken under the reorganisation plan. Explaining the achievements of the ETI property development division last year the spokesman said three housing projects namely Regency Royale in Kiribathgoda, Mahagony Park in Piliyandala and Respiro at Ratmalana were launched and all super luxury houses of those projects were snapped up immediately enhancing the image of the company. He said the three projects introduced quality finished model houses and similar projects in Aturugiriya, Nugegoda and Pelawatta were embarked upon in the previous year. The Nugegoda project is the breakthrough project into super luxury condominium type apartment houses by ETI. Under the reorganisation plan four new pawning centres and four Business Centres for leasing and purchasing were launched. As a result of efficent management the fixed deposit base has gone up to
Rs. 1,687 million by 2005 from Rs. 831 million in 2004, an increase of 103
percent. |
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