MLL bags best corporate annual report award

MERCANTILE Leasing Limited (MLL) was adjudged the sectoral winner in the specialized leasing company category at the recently conducted award ceremony for "Best Corporate Annual Reports" held under the aegis of the Institute of Chartered Accountants of Sri Lanka.

This award recognises transparency and clarity in the company's presentation of financial statements together with sound corporate governance practices.

By winning this award Mercantile Leasing Limited has received the accolade of having produced the best annual report in the specialised leasing company category for the year 2005.

Mercantile Leasing has been at the forefront of the leasing sector for well over two decades. Established in 1982 as a Private Limited Liability Company, it was later converted to a Public Company and listed on the Colombo Stock Exchange in 1983.

Lloyds Bank International then secured a 35% stake in the company. They subsequently divested their holding in 1998 and the company reverted back to its earlier name of Mercantile Leasing Limited.

As at present the company has as its major shareholder, Sri Lanka's premier blue chip conglomerate JKH Limited who acquired a 75.36% stake in the issued capitals of the company. Another prominent institutional shareholders is National Savings Bank (NSB).

The company is planning to merge with Nations Trust Bank and the resultant synergies gained from this exercise would result in the new entity been able to collate all available resources to them and reinforce the leasing product through the creation of a new brand from which would emanate a credible, relevant and unique proposition for its customers.

The leasing industry currently consists of 47 companies registered with the Leasing Association of Sri Lanka, which includes specialized leasing companies such as MLL, registered finance companies, Commercial and development banks.

Operating at its headquarters at Millennium House, Nawam Mawatha, Colombo-02, the company has an extensive branch network and counts as much as 3 subsidiaries namely, MLL Insurance Brokers, Mercantile Leasing "financial services" and Allied Properties.

The company's results for the year 2004 indicated a turnover of Rs. 1.49 billion. The profit before taxation for the same period was Rs. 110 Million. The reported pre-tax for the year 2004 was the highest recorded profit in the history of the company.