AMBEON CAPITAL PLC (TAP.N0000)

Sandstorm · 26 Re: AMBEON CAPITAL PLC (TAP.N0000) Sat May 19, 2012 10:24 pm

Sandstorm

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THANKS GREEDY..

(5) Where a company acts in contravention of the provisions of this section, every officer of the company who is in default shall be guilty of an offence and be liable on conviction to a fine not exceeding one million rupees or to a
term of imprisonment not exceeding five years or to both such imprisonment and fine.

5 years not enough!!!

greedy · 27 Re: AMBEON CAPITAL PLC (TAP.N0000) Sat May 19, 2012 10:46 pm

greedy

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It is bit tricky here.... read this;

"(2) The provisions of section 70 shall also not apply in respect of—

(e) the lending of money by a company in the ordinary course of business, where the ordinary business of the company includes the lending of Money;"

One can see from the introductory document that;

"Lexinton Financial Services (Pvt) Ltd, a fully owned subsidiary of Lexinton Holdings (Pvt) Ltd and eventually a sub subsidiary of Taprobane Holdings, offers Margin Trading facilities to investors. Future plans of Lexinton Financial Services (Pvt) Ltd include increasing its lending capacity via margin trading facilities..."

So... is that lending to IC Nanayakkara not from the ordinary course of business of Lexinton Financial Services (Pvt) Ltd which is providing margin trading Facilities to investors??

Just a question to think!!

(My Point here is that granting Margin Loan to IC Nanayakkara may be in compliance with companies Act 2007.... there may not be any violations of the Act.)

Sandstorm · 28 Re: AMBEON CAPITAL PLC (TAP.N0000) Sat May 19, 2012 11:29 pm

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Please read below the link and the guideline to the Margin Providers issued by the SEC. Lexington is in violation of it by providing facility to Ishara Nanyakkara exceeding 15% of its loan portfolio. SEC should cancel the license Lexington and reverse the transaction.
http://www.sec.gov.lk/?page_id=411&lang=en

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Screen10

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Screen10

Also Look at this News Article and see how Lexington Financial Services have violated Central Bank Regulations too.

Leading News from Sri Lanka::

* Sri Lanka Central Bank restricts use of 'finance' on titles
Mon, Mar 19, 2012, 11:07 pm SL Time, ColomboPage News Desk, Sri Lanka.

Mar 19, Colombo: Sri Lanka's Central Bank today issued a notice restricting the use of the words 'finance,' financing' or 'financial' as part of the names of institutions only to the licensed financial entities.

"Under the Finance Business Act, no entity other than a licensed finance company shall use the words 'finance', 'financing' or 'financial' as part of its name or description," the Central Bank notified in a statement.

It also ordered the entities which currently use the words 'finance', financing' or 'financial' or any of its derivatives or its transliterations or their equivalent in any other language as part of its name or description to remove those words from their name and description on or before 09 May 2012.

http://www.colombopage.com/archive_12/Mar19_1332178676CH.php

smallville · 29 Re: AMBEON CAPITAL PLC (TAP.N0000) Sun May 20, 2012 10:28 am

smallville

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How many listed companies are cheating on retailers/investors? Do we have a count?
Most Importantly, have we care a damn abt it? All of us were interested in knowign whether we could make a quick buck, right?

As far as I could remember, IPOs of Access, PLC, SHL, eTc...... All came up with abnormal pricing and were failures.. We've given early warning to members but still I could see some have vested their interest and were doomed due to market down scenario..

Good revelation BTW. .and we should do this to every company that come out with an IPO or intro to know whether its fruitful to invest in.. I guess the same guys would be here to do that Wink

Quibit · 30 Re: AMBEON CAPITAL PLC (TAP.N0000) Sun May 20, 2012 11:22 am

Quibit

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smallville wrote:
How many listed companies are cheating on retailers/investors? Do we have a count?
Most Importantly, have we care a damn abt it? All of us were interested in knowign whether we could make a quick buck, right?

Not quite right!!
I am sure there are few who would care about it more than just making a quick buck!! Money is not everything, honesty and integrity may stand well above money. As seen recently, many would break thousand rules to make a quick buck. I am sure we all care about that!

smallville · 31 Re: AMBEON CAPITAL PLC (TAP.N0000) Sun May 20, 2012 12:39 pm

smallville

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GMNet wrote:

smallville wrote:
How many listed companies are cheating on retailers/investors? Do we have a count?
Most Importantly, have we care a damn abt it? All of us were interested in knowign whether we could make a quick buck, right?

Not quite right!!
I am sure there are few who would care about it more than just making a quick buck!! Money is not everything, honesty and integrity may stand well above money. As seen recently, many would break thousand rules to make a quick buck. I am sure we all care about that!

Agree few would've, even I do.. but the reality is; 90% are after quick money, cuz as per my understanding, some brokers have indicated so.. some started giving lessons on day trading.. clown

Few yeas ago, IPOs were sure n shot gains, i.e. ODEL.. Now what. .even a good one dont get there unless heavily manipulated.. Recently listed 2 Citrus subs were a good example... And now adays u can even register a company with a land and go for an IPO to build a hotel.. he hee..

So genuinely interested parties are worried and ppl who dont have a touch to read financials and figure out the inflated stuff get into trouble..

Even if we care, would you come out and inform the authorities?

FYI.. Last time I reported a wrong EPS calculation on REEF & RICH, neither company officials replied me or the SEC in that matter Wink

Then this is how the business is governed..

greedy · 32 Re: AMBEON CAPITAL PLC (TAP.N0000) Sun May 20, 2012 2:22 pm

greedy

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Sandstorm wrote:Please read below the link and the guideline to the Margin Providers issued by the SEC. Lexington is in violation of it by providing facility to Ishara Nanyakkara exceeding 15% of its loan portfolio. SEC should cancel the license Lexington and reverse the transaction.
http://www.sec.gov.lk/?page_id=411&lang=en

Also Look at this News Article and see how Lexington Financial Services have violated Central Bank Regulations too.

Leading News from Sri Lanka::

* Sri Lanka Central Bank restricts use of 'finance' on titles
Mon, Mar 19, 2012, 11:07 pm SL Time, ColomboPage News Desk, Sri Lanka.

Mar 19, Colombo: Sri Lanka's Central Bank today issued a notice restricting the use of the words 'finance,' financing' or 'financial' as part of the names of institutions only to the licensed financial entities.

"Under the Finance Business Act, no entity other than a licensed finance company shall use the words 'finance', 'financing' or 'financial' as part of its name or description," the Central Bank notified in a statement.

It also ordered the entities which currently use the words 'finance', financing' or 'financial' or any of its derivatives or its transliterations or their equivalent in any other language as part of its name or description to remove those words from their name and description on or before 09 May 2012.

http://www.colombopage.com/archive_12/Mar19_1332178676CH.php

You mentioned "Lexington is in violation of it by providing facility to Ishara Nanyakkara exceeding 15% of its loan portfolio. SEC should cancel the license Lexington and reverse the transaction."

....To say this we should know what is total margin Loan Portfolio of Lexington. Unless you have that information from somewhere else it will not be factually correct to say that Lexington is in violation of SEC Margin Trading Rules.

Further, we do not know how Much margin has been provided by Lexington to IC Nanayakkara to buy TAP Shares. If it is max 100% margin, the total amount would have been LKR76Mn (LKR209,414,040/732,949,140*266,338,105=76,096,601).

"Also Look at this News Article and see how Lexington Financial Services have violated Central Bank Regulations too."

Date of the Introductory document is 3 April 2012 & as per CBSL the companies which already use these words in their name have been given time to change them till 9 May 2012.

From your reply.....
"the entities which currently use the words 'finance', financing' or 'financial' or any of its derivatives or its transliterations or their equivalent in any other language as part of its name or description to remove those words from their name and description on or before 09 May 2012."

Wouldn't they have changed their name by now??

I'M NOT DEPENDING TAP & I DO NOT HAVE ANY FINANCIAL INTEREST IN TAP OR ANY RELATED Smile

.

wgsaman · 33 Re: AMBEON CAPITAL PLC (TAP.N0000) Sun May 20, 2012 2:58 pm

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Don't burn your money

greedy · 34 Re: AMBEON CAPITAL PLC (TAP.N0000) Sun May 20, 2012 3:43 pm

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I guess many may have noted that TAP's EPS & PER attractive and also guess many may know the truth behind that. The attractive EPS & PER comes from Browns Investments PLC.

This is from the Introductory Document of TAP....

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap_re10

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap_re10

If you Look at TAP's Financial Statements for 9 Months ended 31 December 2011 (See below), you can find that significant profit is coming from .."Share of Profit of Equity accounted Investees" amounting to LKR1,077mn.

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap_9_10

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap_9_10

.

This LKR1,077mn comes from the one of gain of Browns Investments PLC. If you look at Browns Investment PLC's accounts for the Six months ended 30 September 2011, You will find a "Negative goodwill on acquisition of Subsidiary" amounting to LKR3,553Mn. See below;

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Browns10

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Browns10

We all know TAP holds 28% of Brown Investments PLc. Therefore, TAPs Accounts for the 9 Months ended 31 December 2011 includes an one of gain of LKR995mn (LKR3,553Mn*28% = LKR994.84mn).

If we adjust this one off gain from the nine months accounts.....

TAP's 9 Months Profit=================> LKR1,113Mn
One off Gain Negative Goodwill of BIL =====>LKR995Mn
9 Months profit After Adj for NGW ========>LKR118Mn

Therefore 9 Months Adjusted EPS=========> LKR118mn/732,949,140
================================> 16 Cents

PER of Reference price based on annualized adjusted EPS

=================================> LKR6/(16 Cents/9*12)
=================================> 28 Times.

This may not be new as we have already seen many IPO companies showing a rosy picture of their accounts!!!

Sandstorm · 35 Re: AMBEON CAPITAL PLC (TAP.N0000) Sun May 20, 2012 6:33 pm

Sandstorm

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Have a look at this!!

See below the Net Asset Value (NAV) published as at 31 December 2011 by Taprobane Holdings (TAP) which include 28% of value of Browns Investment (BIL). Accordingly Total Net Asset Value is Rs 3.25bn.

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap110

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap110

Now, lets have a look at the latest accounts of Browns Investment PLC (BIL). Accordingly the Total Net Asset Value (NAV) of BIL Group as at 31 March 2011 is Rs 9.6bn. Accordingly 28% of the Investment by TAP in BIL should be worth approximately (9.6bn X 28%) Rs 2.88bn.

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap310

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap310

Now lets look at the Market Capitalization of Brown Investments (BIL). Accordingly the Market value of entire BIL Group is Rs 5.3bn.

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap210

AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Tap210

Now Lets do the adjusted Net Asset Value (NAV) and PBV calculation for the TAP.

Net Asset Value of TAP Group (With BIL) ................................... 3,2bn
Deduct
28% of Net Asset Value of BIL (As per Latest accounts)............... (2.8 bn)
TAP Net Asset Value without BIL............................................0.4 bn
Add
28% of the Market Value of BIL (28% X 5.3 bn)...........................1.5 bn

Total Net Asset Value of TAP Group....................................1.9 bn

Total shares in Issue.................................................................732 mn

TAP Net Asset Value Per Share...........................(1,900/732).. Rs 2.59
Therefore PBV of TAP at Reference Price of Rs 6/=.............. (Rs 6/2.59)
...........................................................................2.32 X Times

Conclusion
If you are really interested in buying a good investment, it is certainly cheaper to buy BIL directly from the market instead of buying TAP which had accounted their investment in BIL at a significantly higher value than the market price of BIL!! See below the comparison.

Current Market Price of BIL ......................................................Rs 2.90
According to TAP valuation of BIL value is.. (2.32 X Rs 4.47*)........Rs 10.37

* Refer NAV of BIL as per 31st March 2011. Please visit www.cse.lk for the accounts of BIL.

sriranga · 36 Re: AMBEON CAPITAL PLC (TAP.N0000) Mon May 21, 2012 2:51 pm

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http://forum.srilankaequity.com/t18194-corporate-actions-announced-on-21st-may-2012#119504

Dragonslayer · 37 Statement from Taprobane Fri May 25, 2012 11:58 am

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stumpy wrote:Typical example for White washing...!

Machang collect&dump!
We're not babies & no hard feelings on ur effort!
I don't wanna waste my time on checking out the truth!

[img]https://servimg.com/view/17538886/3] AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Dddddd12

nivekrulz · 38 Re: AMBEON CAPITAL PLC (TAP.N0000) Tue Jun 26, 2012 11:09 pm

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aaaaahh!!! this reminds me the story of POSITIVE APPROACH, these guys seems to be really good at it lol AMBEON CAPITAL PLC (TAP.N0000) - Page 2 Positiveapproach1