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| Wednesday, 17 November 2004 |
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Industrial Finance prepares for next phase of growth Industrial Finance Limited, a company with a conservative management style, which has maintained a record of steady growth in the past, is now being restructured to gear it to increase its scale of operations. The Managing Director said, "the Board of Directors believes that Industrial Finance is now ready to move on to its next phase of growth. Consequently the company will be restructured with the necessary controls to ensure a well monitored growth of the Balance Sheet". The core capital ratio maintained by the company and the capacity to mobilise funds demonstrates the strength of the company's Balance Sheet and its capacity for growth. While the Central Bank requires finance companies to maintain its core capital at 5% of risk-weighted assets, Industrial Finance has a core capital of 24% of risk-weighted assets. The Central Bank also has a ceiling placed on a finance company's capacity to mobilise deposits, in order to ensure an acceptable level of gearing and thereby the stability of the company. This translates to a ceiling of Rs. 404 million for Industrial Finance based on the company's Balance sheet with the company mobilising Rs. 144 million for its current operations. The company which released impressive results for the year ended March 31, 2004, is currently exploring options for capital infusion in order to further strengthen its balance sheet and to enable the company to operate on a larger scale. Future plans also include increasing the geographical scope of its operations supported by a branch network to facilitate more effective distribution of products. Business development plans also encompass going into new areas where the company's competencies can be utilised. |
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