‘CLC delivers exceptional nine-month interim financial results’
Commercial Leasing & Finance PLC (CLC) delivered a powerhouse financial performance despite the wider economic and industry volatility caused by the COVID-19 pandemic. CLC recorded excellent numbers for the first nine months of the financial year ending December 31 2020, despite challenging market conditions faced by the Non-Banking Financial Institution (NBFI) industry.
Profit Before Tax grew to Rs. 2.3 Bn as at December 31, 2020, over the first nine months of the financial year under review. CLC recorded Profit After Tax of Rs. 1, 922 Mn, reflecting an increase of 65% over the previous year. Cost of funds reduced by 23% while overheads increased by only 3%. The company’s performance is a result of excellent management of its Non-Performing Loans (NPLs) and cost of funds, while sustaining revenues by maintaining its product mix optimally.
CLC’s low NPL ratio compared to the industry is a result of its well-secured asset base and superior credit quality. Maintaining low NPLs despite the adverse impact on the market during first and second waves of the pandemic is a testimony to strong customer relationships the company has built.
Further, CLC’s total assets exceeded Rs. 72.2 Bn during the period under review, making it one of the largest NBFIs in the country. CLC’s portfolio is well-diversified into all sectors of the economy – spanning auto finance, agri finance, SME finance, microfinance, Islamic Finance, gold loans, and receivable finance through factoring.
Equally significant is the growth of its deposit base by 19% during the period under review which reflects public confidence in the company’s financial stability. CLC’s capital base exceeded Rs. 21 Bn as at December 2020, recording a 19% increase, which is far above the regulatory requirement with a Tier One capital ratio of 20.95% against Central Bank of Sri Lanka’s mandatory level of 6.5% and with Tier Two capital at 20.13% as against the regulatory requirement of 10.5%.
Expanding further, CLC Executive Director/CEO Krishan Thilakaratne said, “Our excellent nine-month performance is a result of top notch credit quality maintained over the years. We are optimistic about ending the financial year with even stronger results. Looking ahead, we plan to further expand our branch network by 15 more branches in the next financial year in order to leverage the high equity and brand value enjoyed by CLC across the country.”
As a further testimonial to its robust financial performance, CLC was reaffirmed as SL (A) stable by ICRA Lanka Ltd., which reaffirms its stability for customers. (CLC)
Cabinet approves rationalization of VAT exemptions and abolition of SVAT System
The Cabinet of Ministers granted concurrence to the resolution forwarded by the Minister of Finance, Economic Stabilization and National Policies to remove most of the releases from Value Added Tax (VAT), further retaining releases that ease the pressure on low – income families to secure the fundamental sectors of the economy as well as the releases for sectors such as education, health and agriculture, as well as to revise the provisions applicable for the Value Added Tax (VAT) act so that the Simplified Value Added Tax (SVAT) methodology can be canceled with effect from 01.01.2024 by introducing a more formal methodology for repaying the Value Added Tax (VAT) and to instruct the Legal Draftsman to prepare a draft bill for the purpose.
Venora Lanka Power Panels to set up assembly plant in Australia
By Hiran H.Senewiratne
Sri Lanka- based, export- oriented manufacturer, Venora Lanka Power Panels (Pvt) Ltd, with a state of the art electric panel factory at the Export Processing Zone, Biyagama, will set up an assembly plant in Australia.
“Once we set up the electric panel assembly plant in Australia, we will export all our panels from Sri Lanka and that plant will do 30 percent value addition to the product to supply that market, the company’s chairman/ Managing Director, engineer Sagara Gunawardena told The Island Financial Review.
Gunawardena said that the company is a value- addition assembly plant and he would be investing AUS $ 2 million for the project to be set up in Melbourne and hire 100 engineers and other professionals. He explained that the venture has enormous potential.
Venora Lanka provides power panels to mega projects in Sri Lanka and exports to Bangladesh, Maldives, Kenya, Ethiopia, Seychelles and Myanmar. Panel assembling is strictly in compliance with IEC 61439 standards, it was explained.
Gunawardena added: ‘I firmly believe that, being a truly customer focused organization, every employee and every process in the organization has to be aligned behind delighting customers. Therefore, at a time when the country is facing a major dollar crisis, my company would be aiming at bringing dollars into the country, while providing employment for local professionals, especially engineers.
‘At Venora Lanka we do not try to change customers’ mindsets. Instead, we take time to understand what they really want and focus our brand on delivering that. Venora is values- driven first and cost- driven second – creating a unique brand proposition.
‘Since the US dollar rate has come down, it is our concern that importers and suppliers do not change their prices, which is really affecting the manufacturing sector.
Company sources added: ‘The company has several wings of operation, such as local and overseas projects, switch board assembling, telecommunication infrastructure installations, earthing, lighting and surge protection, incorporating world renowned brands.
‘Venora Lanka Power Panels is the first Sri Lankan company to receive the licence, in accordance with the UK Trade Mark Act 1994, to use the trade mark “Best Enterprise”. It won a global award at the event, ‘Golden Awards for Quality and Business Prestige’, held in Geneva, Switzerland, in 2015.
‘Within a short span of time, with the perfect blend of progressive thinking and expertise, Venora Group has expanded to consist of, Venora International Projects, Venora Telecom, Venora Industrial Solutions and Venora Lanka Power Panels (BOI approved). Further, Venora has established its overseas presence through Venora Engineering Kenya and Venora Engineering Myanmar.’
Share market moves into positive territory; indices up
By Hiran H. Senewiratne
CSE trading got off to a positive note yesterday but during the last session of the day the momentum slowed. However, the market is now moving towards positive territory following the Central Bank announcement of a downward trend in interest rates, market analysts said.
Amid those developments the market witnesses improvements in both indices and in the turnover.
The All- Share Price Index up by 12.8 points and S and P SL 20 rose by 6.97 points. Turnover stood at Rs 710 million with one crossing. The crossing was reported in JKH which crossed 430,000 shares to the tune of Rs 60.2 million; its shares traded at Rs 140.
In the retail market top seven companies that mainly contributed to the turnover were; JKH Rs 212 million (1.5 million shares traded), Access Engineering Rs 44.7 million ( three million shares traded), Lanka IOC Rs 34.5 million (264,000 shares traded), Browns Investments Rs 28.6 million (5.3 million shares traded), LOLC Finance Rs 23.8 million (4.7 million shares traded), Capital Alliance Rs 22.9 million (615,000 shares traded) and First Capital Holdings Rs 19.2 million (574,000 shares traded). During the day the 31.4 million shares volumes changed hands in 9000 transactions.
Yesterday, the Central Bank’s US dollar buying rate was Rs 285.16 and the selling rate Rs 298.85.
Sagala Ratnayaka leads Sri Lanka delegation to 20th IISS Shangri-La Dialogue
Prices of sixty essential drugs to be reduced from 15th June
Cabinet approval to publish draft bill on contempt of a court, a tribunal or an institution
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