FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Latest topics

» First Capital Treasuries (FCT) and CFVF
by buddikasmart Yesterday at 4:21 pm

» Buy back season - Richard Pieris
by Runnerx Thu Dec 08, 2022 10:31 pm

» What is Wrong with SOFTLOGIC HOLDINGS PLC (SHL.N000)
by DeepFreakingValue Thu Dec 08, 2022 10:10 pm

» SRI LANKA TELECOM (SLTL.N0000) - Reawakening the Giant
by God Father Thu Dec 08, 2022 9:32 pm

» Focus on Government controlled entities
by K.R Thu Dec 08, 2022 9:17 pm

» PMB/PLC/PINS
by GOSL Thu Dec 08, 2022 6:47 pm

» May Day! alert from SOFTLOGIC FINANCE PLC (CRL.N0000)
by God Father Thu Dec 08, 2022 5:45 pm

» LOLC FINANCE PLC (LOFC.N0000)
by Equity Win Thu Dec 08, 2022 3:49 pm

» THE NEXT OPPORTUNITY - GET IN
by morphy360 Thu Dec 08, 2022 10:11 am

» UNION BANK - Ownership change requires approval
by God Father Wed Dec 07, 2022 5:51 pm

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by K.R Wed Dec 07, 2022 4:21 pm

» Sri Lanka cleared to borrow cheaper IDA funds by World Bank
by K.R Tue Dec 06, 2022 10:14 am

» PLR (Prime Lands) Next Value counter.. Fair Value Rs 20
by Anushka Perz Tue Dec 06, 2022 12:19 am

» NESTLE LANKA PLC (NEST.N0000)
by Anushka Perz Tue Dec 06, 2022 12:15 am

» What will happen tomorrow?
by ErangaDS Mon Dec 05, 2022 9:12 am

» Paris Club proposes 10-year moratorium on Sri Lanka debt, 15 years of debt restructuring
by K.R Sun Dec 04, 2022 11:27 pm

» Banking Sector Faces Tight Liquidity
by DeepFreakingValue Sat Dec 03, 2022 4:15 pm

» Sri Lanka: Exchange Rate Movement
by DeepFreakingValue Sat Dec 03, 2022 3:46 pm

» Fitch downgrades Sri Lanka’s rating further
by CHRONICLE™ Sat Dec 03, 2022 9:12 am

» Sri Lanka bond yields extend fall on DDR comments
by K.R Fri Dec 02, 2022 7:11 pm

LISTED COMPANIES

Submit Post


ADVERTS

Poll

EXCHANGE RATE PREDICTION: 2022

VAT reduction leads to closure of Singer’s TV plant Vote_lcap16%VAT reduction leads to closure of Singer’s TV plant Vote_rcap 16% [ 43 ]
VAT reduction leads to closure of Singer’s TV plant Vote_lcap21%VAT reduction leads to closure of Singer’s TV plant Vote_rcap 21% [ 58 ]
VAT reduction leads to closure of Singer’s TV plant Vote_lcap30%VAT reduction leads to closure of Singer’s TV plant Vote_rcap 30% [ 83 ]
VAT reduction leads to closure of Singer’s TV plant Vote_lcap34%VAT reduction leads to closure of Singer’s TV plant Vote_rcap 34% [ 93 ]

Total Votes : 277

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

MARKET CHAT


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » VAT reduction leads to closure of Singer’s TV plant

VAT reduction leads to closure of Singer’s TV plant

5 posters

Go down  Message [Page 1 of 1]

shan


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Sri Lanka’s Singer Industries (Ceylon) Plc (SINI), which deals in the assembly of sewing machines and the manufacture of cabinets and stands for sewing machines say they were forced to discontinue a newly set up television assembly plant during the year 2010 due to the government’s 2011 Budget decision to reduce VAT rates. According to the firm’s recent Annual Report for the year 2010, the company had also at the time resolved to discontinue the business activity relating to trading in televisions.
“During the year, the company commenced assembling televisions. However, due to the unfavourable tariff structure imposed in the budget for 2011, this operation was discontinued,” SINI Chairman, Hemaka Amarasuriya noted in his message at the release of the firm’s 2010 Annual Report.
According to the Annual Report, SINI have had to absorb a loss on closure of Rs.2.3 million for fixed assets while remaining assembly components would bear a provision against further losses, if any. However, revenue generated from the TV assembly operation was Rs.322 million for the year and the profit after tax generated amounted to Rs.8.6 million.

“Having previously experienced the ‘yoyo’ effect of tariff adjustments, we were cautious in outsourcing this operation to safeguard investments from a consistently changing tariff structure,” Amarasuriya noted.
SINI made a net profit after tax of Rs.118.2 million for the year 2010, compared with a net loss of Rs.33.8 million incurred in the previous year. However, without the gain from revaluating investments, the company incurred a loss of Rs.17.6 million during the year although revenue increased by 37% to Rs.664 million.
“Recovery of consumer markets was clearly visible as a post-war phenomena and this was a year to meet unsatiated demand, locked up previously, while consumers awaited better times. This is signified by a more than doubling of revenue (including revenue from discontinued assembly of televisions) for 2010. North and Eastern markets returned to activity, while across the nation buying trends peaked with the reduction of interest rates and a favourable market environment which encouraged hitherto purchases,” Amarasuriya said in his message.
Meanwhile, according to SINI Group Chief Executive Officer Asoka Peiris, the increase in revenue was as a result of the increased demand for sewing machines due to improvement in market conditions and the marketing done by Singer Sri Lanka Plc.
“In sales volumes, the sewing machine heads increased by 27% while the cabinets and stands had a greater increase. The profit for the year increased to Rs.126.8 million compared to a loss of Rs.33.7 million in the last year. However, the profit is primarily due to change in the fair value of current investments and due to lower payments under the Voluntary Retirement Scheme,” Peiris said.
SINI says it continues to downsize its operations while streamlining sewing operations with a view to enhancing productivity and that a Voluntary Retirement Scheme remains open-ended for those seeking early retirement.

the nation.lk

Rocky

Rocky
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Who watches TV these days?
Who sews clothes these days?

Both those trades are not taught and learned by our young dames.
They buy them off the hangers or shelves, I mean clothes.
With the condition COMPAS spreading like gangarine, no very few will watch TV.
Advertisers are moving into online advertising. This they do through facebook, twitter, spam and other social networks.

The SL Govt. imports every thing.
Who cares.

Singer should have other products to sell. Those two are gonners!! Smile

Monster

Monster
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

hybrid_OS wrote:Who watches TV these days?
Who sews clothes these days?

Both those trades are not taught and learned by our young dames.
They buy them off the hangers or shelves, I mean clothes.
With the condition COMPAS spreading like gangarine, no very few will watch TV.
Advertisers are moving into online advertising. This they do through facebook, twitter, spam and other social networks.

The SL Govt. imports every thing.
Who cares.

Singer should have other products to sell. Those two are gonners!! Smile

My answer is nothing related to this topic,

In early 80's many thought electronic media will replace the printed media. But it didn't happen. Still more than 90% people used to buy news papers and read. Those who are staying outside the country only using e-paper (like me). What I am telling you is, TV cannot replace printed media. Similarly Facebook, twitter and other social networks cannot replace TV.

banarahu

banarahu
Manager - Equity Analytics
Manager - Equity Analytics

are there any previous examples of companies like this. will it make big effect to the market.. ?

tubal


Vice President - Equity Analytics
Vice President - Equity Analytics

SINI TV factory being closed is old hat. It will have no effect on SINS but it's effect on SINI remains to be seen. SINI is living on borrowed time but i noticed several people chasing after it and promoting it irresponsibly.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum