Sinhaputhra Finance records Rs. 81.09 mn profit after tax
Sinhaputhra Finance Ltd., recorded the highest ever post tax profit
during the year 2006/07. The upward trend in interest rates that
continued throughout the year exerted pressure on company's interest
margins.
The interest income of Rs. 583 mn comprised mainly of interest on
Finance Leases, Business Loans and Personal Loans. Finance Leases
contributed 47.8% of interest income followed by Business Loans and
Personal Loans with 32.1% and 9.8% respectively. Interest on Treasury
Bills and other facilities provided the balance 10.3%.
The net earnings before taxation decreased by 23% to reach Rs. 52.5
mn. Prudent measures taken by the Directors to increase specific
provision for loan losses and for the diminution in the value of
repossessed assets on Finance Leases, significantly, affected the growth
momentum in pre-tax earnings during the year under review. The Directors
are satisfied with this achievement that reflects a true and fair view
of the company's financial status.
The Directors transferred Rs. 16.2 mn to the Statutory Reserve Fund
in compliance with the directions issued by the CBSL.
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