Singer Finance invests in long-term stability and security

Increasing its stated capital to Rs. 400 million through a Rs. 200 million equity investment made by Singer (Sri Lanka), Singer Finance took a significant step towards further bolstering its strength and dependability.

With this additional investment, Singer Finance currently has twice the stated capital mandated by the Central Bank of Sri Lanka (CBSL) for registered Finance Companies.

Singer Finance commenced operations in 2004 as a specialised leasing firm and was registered with the monetary board of the CBSL in 2005 as a registered finance company. With over 125 years of credit exposure, Singer (Sri Lanka) is the main shareholder of Singer Finance, counting over 125 years of experience in the credit field and pioneering hire purchase in Sri Lanka.

With its financial and management expertise, it has ably steered Singer Finance to a leadership position in the finance sector.

Singer Finance recorded Net Profit Before Tax of Rs 75 Mn and Net Profit After Tax of Rs 35 Mn during last ten months period ended Oct 31, 09 which is a significant achievement in profitability comparing with the current economic condition.

Further, as of October 2009, Singer Finance's asset base has grown to Rs. 2.9 billion while shareholders' funds has increased to Rs. 473 million with the recent infusion of new stated capital.

Additionally, as a result of the increase in stated capital, the Company's Capital Adequacy Ratio has increased to 16.55 percent, well over the minimum 10 percent ratio required by CBSL directions. The Company follows a very strict provisioning policy on Non-Performing Loans that is far more stringent than the stipulated minimum requirement of the CBSL to the industry.

In spite of the difficult financial climate that prevailed, Singer Finance's deposit base has also grown to Rs. 1.39 billion.