Troubled TFC says loss widens by 49 % in 4thQ 2014 to Rs. 447 mln
View(s):The Finance Company (TFC), the troubled finance company the Central Bank (CB) is trying to bail out through a merger with a more profitable bank under the new financial reforms, has reported a sharp loss of 49 per cent to Rs. 447.3 million in the three months ending March 2014 against a loss of Rs.300 million in the same 2013 quarter.
Its net loss for the year ending March 2014 was slightly better at 1 per cent to Rs 1.54 billion against Rs.1.52 billion in the previous year.
Trade unions are opposing plans by the CB to merge the loss-making TFC with the profitable State Mortgage and Investment Bank. Independent verification was not possible of this move but the CB has said the TFC is going through a process of restructure and the second phase of this step was announced last week to make it attractive to any buyer. A long term facility from the Sri Lanka Deposit Insurance and Liquidity Support Scheme was provided on May 26 to “support the liquidity requirements of the company”, the CB said, adding that the board of directors were also reconstituted.
The report released to the Colombo Stock Exchange recently also revealed that “Net Cash Flows from/(used) in Investing Activities” showed a loss of Rs. 509 million against Rs. 227 million earlier. The company’s last traded price in the stock market for the just completed financial year was Rs 11 per ordinary share, up from the last traded price of Rs.4.50 in the previous year.
It said directors M.P. Jayawardena (chairman), K.J. Yatawara, Ms. C Rosa and W.M. Kumarasinghe resigned from the Board with effect from May 26, 2014 and were immediately replaced by Dr. S.H.A.M. Abeyratne (Chairman), S. Rajapakse, R. Athukorala and R.D. Abeywickrema.
Top stock market investor, T. Senthilverl is the main shareholder with 21.7 per cent of the stock followed by Celinco Investment Co Ltd with 11 per cent and the Employees Provident Fund with 8.3 per cent. The Bishop of Galle has 2.1 percent of non-voting shares.