CIFL is maintaining "healthy" 6 Rupee AVPS while going down to 2.30 in the market. That is a good sign for an investor.
To determine its health I want to know what are the Joint venture projects it has invested 1.5 billion Rupees. ( shown in assets )
They have given details and notes about all other assets but I failed to find any info about these joint ventures with undisclosed parties.
Can anybody help me. ?
Because, this amount is seems to be very important and surprisingly no notes are provided.
( bet note 13 & 14 in last A/R 1.3 billion , now 1.55 billion)
If failed projects, it can take CIFL form positive to severe negative NAV. (+ 6 to negative 12)
Chinwi, see page 19 of the last AR:
The Park Lane Residencies - Homagama
The Condominium units at Park Lane Residencies in Homagama are a unique concept and can be classified as the first of its kind in Sri Lanka.Located within just 10 minutes walking distance from Homagama (25 km from Colombo), the residence provides easy access to almost every part of Colombo, with the new highway system which is currently being built. The land occupies a spacious 5 acre area with beautiful surroundings.
Through the concept of ‘Nature and modernism for 21st century lifestyles’, the design of each unit allows the best panoramic view of paddy fields and some of them have views of the swimming pool. “Park Lane” is fully equipped with a swimming pool, club house, gymnasium, mini-super market and 24 hours security.
The Phase 1 of the project consisting 74 housing units, was successfully completed at the end of 2008 and all the units have been successfully sold out.
The Phase 2 of the project consist 44 semi luxury twin dual housing units & a three story 5 bedroom single
housing units is underway for sale.Since the demand for ‘Park Lane’ housing units have been increased by 66% from 2007 to 2012 up to Rs. 7.5 million per unit, the company is expecting a further 33% growth for the next two years with the completion of the new highway system connecting the south and the north of the country.The company is aiming at a very high profitability through the project.
Again, see Note 25 at page 52:
25 INVESTMENTS IN JOINT VENTURE PROJECTS
At the beginning of the financial year the Company ‘s net capital investment on Homagama Joint Venture Project was Rs. 648,814,223.00.The Company has capitalized Rs. 596,565,513.00 during the year , on account of Interest Receivable on Homagama Joint Venture Project, as per the Joint Venture Agreement.
The Company’s investment on Homagama Joint Venture Project at the end of the financial year stand at Rs. 1,335,792,473.35/-.
Hope it makes sense.