ABANS FINANCE UNDER INVESTIGATION BY CSE AND SEC?

Wimal Modawansa

Wimal Modawansa

Manager - Equity Analytics

Posts : 123
Join date : 2017-03-13

One of the largest family owned groups of companies is under investigation for money laundering?

Details of companies that are subsidiaries of this group which are controlled and owned and the details including directors, shareholders and balance sheets for the years 2013 and 2016 are being investigated?

Since this group has created number paper companies with proxy directors most of whom are employees and fictitious overseas shareholders there could have been a possible attempt of money-laundering.

As per the published data most of the employees who nominee shareholders are multi millionaires.(Source- CSE records and employee verification).

fortuneteller · 22 ABANS FINANCE MISLEADS CSE AGAIN Thu Aug 03, 2017 12:56 pm

fortuneteller

Senior Equity Analytic

Posts : 82
Join date : 2016-08-01

Abans Finance has confirmed the free float as 8.10% to CSE.

As at 31^st March 2017 Abans Plc and Ironwood Holding combine owned 91.55% the other connected parties owned 6.26%. Hence the total should be 97.81%. Accordingly the free float should be 2.19% and not 8.10%.

Able Investment (Private) Limited(1.21%) A B Cold Storage ( Private) Limited(0.22%) and Cleantech ( Pvt ) Ltd (0.22%)are connected parties to Abans PLC (71.60%) and Mr.K.Kunenthiran(0.70%), Mrs.C.V.Sumanadasa(0.67%) and Mrs.S.C.Henagama Gamage (0.67%)are proxy employees holding shares. Mr.P.N.Pestonjee(1.37%), Mr.B.Pestonjee(90.46%), Mr.R.Pestonjee(0.33%),Mrs S.Dubash(0.29%) and Mrs.A.Pestonjee(0.12%) are Directors of Abans PLC.

As such the shares owned by them should not be counted under “Public Float”.(source-Financial Statement as at 31^st march 2017.)

1 Abans PLC 39,717,534 71.60%

2 Ironwood Investment Holding (Pvt) Ltd 11,067,978 19.95%

3 Mr. P N Pestonjee 759,600 1.37%

4 Able Investments (Private) Limited 672,431 1.21%

5 Mr. K Kunenthiran 389,014 0.70%

6 Mrs. C V Sumanadasa 370,000 0.67%

7 Mrs. S C Henagama Gamage 370,000 0.67%

8 Mr. B Pestonjee 256,800 0.46%

9 Mr. R Pestonjee 183,884 0.33%

10 Mrs. S Dubash 160,353 0.29%

11 A B Cold Storage (Private) Limited 120,000 0.22%

12 Cleantech Pvt Ltd 120,000 0.22%

13 Ab Securitas (Private) Limited 120,000 0.22%

14 Mr. J S A Perera & Mrs. R N Perera 68,316 0.12%

15 Mrs. A Pestonjee 66,667 0.12%

16 Mrs. H I Salgado 66,600 0.12%

17 Mr. G C Goonetilleke 48,105 0.09%

18 Nation Lanka Capital Ltd/Karagoda Loku Gamage U d 32,300 0.06%

19 Miss. M F F Safina 30,624 0.06%

20 Mr. R E Rambukwelle 30,517 0.06%

54,650,723 98.53%

Others 817,255 1.47%

Total 55,467,978 100.00%

Wimal Modawansa

Wimal Modawansa

Manager - Equity Analytics

Posts : 123
Join date : 2017-03-13

Dirty Abans Group has shown their ugly face again by releasing profit figures to the media before releasing to Stock Exchange.

Helpless CSE and SEC is silent?

Wimal Modawansa · 24 Abans Finance downgraded to associate company Tue Aug 08, 2017 12:48 pm

Wimal Modawansa

Manager - Equity Analytics

Posts : 123
Join date : 2017-03-13

Abans Finance PLC (member of troubled Abans group) profits for the quarter ended June 2017 has been Rs 9 Mn dropped from 35Mn the previous year same quarter?

This is despite stated capital increasing from Rs 382 Mn to Rs 1,121 Mn by private placement and Abans group downgrading to associate status?

Is this why the buyers are at Rs 22.00 which is lower than mandatory offer price of Rs 25.00?

Wimal Modawansa · 25 ANOTHER FINANCE COMPANY IN DEEP TROUBLE? Thu Aug 10, 2017 10:43 am

Wimal Modawansa

Manager - Equity Analytics

Posts : 123
Join date : 2017-03-13

ANOTHER FINANCE COMPANY IN DEEP TROUBLE?

Troubled Disaster stricken Abans Finance PLC suffers steep decline in profit to Rs 9 Mn from Rs 34 (72.7%) for quarter ended 30th June 2017

Impairment related to bad loans increases to 19.95

Deposits and Advances declines after acquisition of Ironwood Investment and Abans group downgrading the status to associate from the status of subsidiary.

Share which was trading @ Rs69.90 traded at Rs.24.20.

(Source- CSE).

MAJOR CHANGES TO BE MADE AS THE CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER ASKED TO RESIGN AS THEY COULD NOT DELIVER WHAT THEY PROMISED TO DELIVER.

(Source- staff).

worthiness

worthiness

Senior Vice President - Equity Analytics

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Join date : 2011-04-08

Any comments on ARPI & BFN.

Wimal Modawansa · 27 DISASTER STRIKES ABANS FINANCE PLC Tue Aug 15, 2017 5:24 pm

Wimal Modawansa

Manager - Equity Analytics

Posts : 123
Equity Stars : 2740
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Join date : 2017-03-13

DISASTER STRIKES ABANS FINANCE PLC

Share Capital has increased to Rs1,120 Mn from Rs 567 Mn (97.5%)

HOWEVER Profits of Abans Finance have steeply declined to Rs 9 Mn from Rs 34 Mn (72.7%)

Impairment (provisions for bad loans) has increased by 19.5%.

Customer deposits have dropped .

Decline in margin and no growth in loans and advances.

REASONS FOR FAILURE OF ABANS FINANCE

Increase in bad loans

Reduction in margins to achieve loan growth.

Adverse image in the market, hampering deposit growth.

No business knowledge of Ironwood Investments on financial services.

Interference of major shareholders in day to day operations.

Conflict of interest of Directors to unjustly enrich themselves.