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| Tuesday, 12 October 2004 |
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Alliance Finance net profit increases to Rs. 25.5 million from Rs. 14.89 million Alliance Finance Company Limited recorded a Rs. 25.5 million net profit for the last financial year. The company describes the year's performance as an exceptionally good year as the net profit has grown from Rs. 14.89 million in 2002/2003 to Rs. 25.5 million in 2003/2004. The management attributes the stringent policy adopted for Bad Debts and efficient utilisation of resources to optimise profitability as contributory factors for the growth. Chairman and Joint Managing Director of Alliance Finance Company Pratap Kumar de Silva said that their credit and deposit portfolios too grew considerably in the year under review and the profit level was achieved after the company adopted the more stringent provisioning policy for Bad Debts, Direction 1 of 1991 of the Central Bank. "Consistent with our prudent approach and in view of the volatility of the present business environment, the Directors have made an additional provision of Rs. 11.5 million for the Fall in Value of Dealing Securities," de Silva said. "The Company's exceptional performance could also be attributed to the efficient utilisation of the available resources in a highly competitive business environment to optimise profitability, he said. In view of the improved performance of the Company, the Directors have recommended a First and Final Dividend of 25% for the year under review. "This year a foundation was laid for consistent and sustained growth in the years to come. All operational departments have been further strengthened to meet the challenges in the market. As the groundwork has been done, the Company is moving towards a more strategic approach for improved performance and enhanced profitability in the future. The Directors would continue in their commitment to enhance the return to the stakeholders and improve service levels to Depositors and Customers," he said. "The continued dialogue between the Finance Houses Association and the Central Bank has helped the Finance Companies," he said. Deputy Chairman and Joint Managing Director of the Company Romani de Silva said that in keeping with their credit policy, emphasis was placed on securing quality business with a lesser risk. "Our turnover from Lease, Hire Purchase and Loans thus increased by Rs. 116 million - an healthy increase of 20%. "This has largely been possible due to the excellent leadership and team work of our restructured Credit Department. In the area of investments, a noteworthy factor is that 'Easy Drive' our Operating Lease product has increased its turnover by 100%. Our fleet of vehicles leased under this scheme is being maintained by the newly formed Alliance Motor Division. Through this combined service offering we envisage this product to gain market share in the coming year," de Silva said. "A new department 'Micro Credit' was also formed to adopt a more focused approach to our customers who have small credit facilities with us. This department has been designed to better facilitate these customers. We grant finances for the purchase of trishaws, which also creates self-employment. In the event of the accidental death of the owner of the trishaw, the debt is written off on compassionate grounds. Under the purview of this department, in the recent past we have also provided financial assistance for the purchase of solar units in rural areas," he said. SP |
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