The Chartered Accountants Committee (CCA) will begin the second stage of repayment to Ceylinco Shriram depositors following the Supreme Court ruling to dispose of certain assets of the company, said a member of the committee. The committee has made a prposal for the second installment payment to settle 75 % of the net deposit liability or Rs. 250,000, whichever is lower after deduction of the first installment paid to depositors.
At a meeting of Ceylinco Shriram depositors it has been agreed to pay 50 % of the net deposit liability or Rs. 250,000 due to present difficulties in raising the money by selling assets of the company, a member of the depositors association said.
The committee has informed the court that a sum of Rs. 448.3 million has been paid under the first installment and a further Rs. 535.2 million is to be raised for the next payment.
The sale of Entrust Ltd, a subsidiary of Ceylinco Shriram has been brought to the notice of the court drawing its attention on the trade and other payable disclosed in the company’s audited accounts amounting Rs.5.7 billion. The Supreme Court directed the CCA to work with auditors Ernest & young in analysing this amount and personally calling for confirmation letters with assistance of the Central Bank.
The committee has been entrusted with the task of calling offers for the sale of Ceylinco Leasing Corporation Ltd, with assets amounting to Rs 1.7 billion.
The two Ceylinco Shriram companies - Ceylinco Capital Investment Company Ltd and CLC Asset Management Ltd were accepting deposits from the public by breaching sections of the Finance Companies Act and evading Central. Bank regulations. A third company Ceylinco Shriram Capital Management Services Ltd, not authorised by the Central Bank, has been lending and re-investing money of depositors.