Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum 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
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

by Maharaja Today at 11:10 am

» Stock Market Tomorrow??
by ruwan326 Today at 10:02 am

by ruwan326 Today at 9:55 am

by ruwan326 Today at 9:50 am

» #PM Crisis#
by samaritan Today at 9:43 am

» ##FUN TOONS###
by ruwan326 Today at 6:52 am

» CTCE, UAL, AAIC,JINS moving up
by ruwan326 Today at 6:46 am

» SRI LANKA @ 2020
by ruwan326 Today at 6:44 am

» Fresh Cut Bank Instruments (Lease Option/Sales Option)
by reliablemandate Sat Dec 15, 2018 10:57 pm

by wisdom79 Sat Dec 15, 2018 9:25 pm

» අනං## මනං ##
by ruwan326 Sat Dec 15, 2018 7:24 am

» Financial Reports Q-3 2018
by ruwan326 Fri Dec 14, 2018 9:49 pm

by ruwan326 Fri Dec 14, 2018 9:45 pm

by ruwan326 Fri Dec 14, 2018 9:41 pm

» Dealing by directors
by ruwan326 Fri Dec 14, 2018 9:39 pm

» Daily Foreign Transactions
by ruwan326 Fri Dec 14, 2018 9:35 pm

by ruwan326 Fri Dec 14, 2018 8:59 pm

» News Behind CTCE.N0000 Running?
by Agape Fri Dec 14, 2018 12:07 pm

» දුනාමි CSEC කැපිටල් එක 98% ජනශක්ති සමූහය මිලයට ගන්නෙත් BFN ගනුදෙනුව ස්තිරවම වෙන නිසා කියලයි තතු දත්තෝ කියන්නේ
by ruwan326 Fri Dec 14, 2018 9:22 am

» FOR all the BFN/CFVF/JINS Promoters
by ruwan326 Fri Dec 14, 2018 8:25 am

» HDFC is the luckiest bank!
by easthetic Fri Dec 14, 2018 7:47 am

by sanjulanka Fri Dec 14, 2018 6:49 am

by Agape Thu Dec 13, 2018 5:36 pm

» Asia Asset Finance announces Rs. 425 mn IPO
by Chillr_25 Thu Dec 13, 2018 2:48 pm

by ruwan326 Thu Dec 13, 2018 11:03 am

» @RANFERDI, YAhapalan, In which list are you? Puravesi Lithro List, or Kiriella List or other list
by ruwan326 Thu Dec 13, 2018 10:27 am

» Keep eye on ASIY
by ruwan326 Thu Dec 13, 2018 10:23 am

» BFN ගනු දෙනුව වෙනවා ..
by Equity Suda Thu Dec 13, 2018 9:48 am

» BFN - JINS - UBC - අද මෙම කොටස් හුවමාරු වුනු ප්‍රමාණ සහ ආකාරය බලන්න
by ruwan326 Thu Dec 13, 2018 9:48 am

» Confidence is every part of trading.
by ruwan326 Wed Dec 12, 2018 9:34 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » ABANS FINANCE PLC IN DEEP TROUBLE?


Post new topic  Reply to topic

Go down  Message [Page 1 of 1]

1 ABANS FINANCE PLC IN DEEP TROUBLE? on Thu Feb 08, 2018 5:53 pm

Wimal Modawansa

Manager - Equity Analytics
Manager - Equity Analytics
ABANS FINANCE PLC - Another small finance company which was financing HERO motor bicycles is in deep trouble. Their profit for 9 months have dropped by 34% and 3 months have dropped steeply by 47%.If not for the fraudulent impairment adjustment the 3 months performance up to December would have been a loss.
The central Bank of Sri Lanka carried out a audit recently and have given a worse report in the history of 10 years.
The investors in the fund managed by Ironwood Investments who are the main shareholders have demanded Eran Himbuldeniya to exit this investment.
The investment was made at Rs 25 and the share has dropped to Rs 22.The Managing Director , Chief Financial Officer and Head of Risk and compliance also have resigned .
60% of the branches incurred losses after the Head of Branches was transferred .
The performance became even worse after Some of the female staff members were harassed by the Chief Operating offer.
Well respected Luxman Watawela also has resigned from Abans Electricals Board where the performance has dropped .
Investors are advised not to invest in Abans group shares.
Abans group which has been closely associated with the former regime has been provided with land in katunayake to build low cost housing by BOI but the land has been used to carryout assembly operations.
Colombo commercial company land was also given without following procedures and both deals are being investigated.
municipality garbage collection contract awards of Colombo and Sri Jayawardenapura kotte are also being investigated now.

2 Re: ABANS FINANCE PLC IN DEEP TROUBLE? on Fri Feb 09, 2018 7:33 pm


Senior Equity Analytic
Senior Equity Analytic
Abans group has always manipulated.
-When the company was formed no cash was put in. -Hire Purchase portfolio was transferred as share capital.(Central Bank pf Sri Lanka).
-When listing was made shares were fraudulently transferred to employees to cheat the CSE/SEC on free float rule.(CSE/SEC)
-Those employees have no means to buy the shares and FCID should investigate under money laundering act(Employees of Abans)
-If the initial share holder list is checked these employees could be identified(Varners International-company secretaries)
-CDS accounts were opened with Acquity and JB stock brokers and shares sold fraudulently without payment of money.(Acquity and JB stock brokers.)
-When private placement was made shares were issued to Ironwood , company owned by independent director and audit committee chairman Hiran Embuldeniya at a discounted price of Rs 25.00 when the share was trading at 69.90 ,cheating the minority share holders(stock exchange records)
-Hiran Embuldeniya requested approval to buy shares even before the Company was incorporated(Central Bank of Sri Lanka)
-Seylan bank offered 2 times the asset value to buy the shares but private placement was at 1.4 times asset price to Ironwood.(Seylan Bank)
-A company named Able Investment was set up to buy and transfer shares of employees and the rate at which such company bought the shared should be the mandatory offer price as Abans and Ironwood have acted in consort(Registrar of companies)
-Both CSE and SEC are weak, They were cheated and taken for a ride(Investors and General public.)
-Mr Hiran Embuldeniya common Director of Abans And Ironwood continue to serve as Audit Committee Chairman and Independent Director and CSE and SEC were weak and inactive connected to conflict of interest (Varners International-company secretaries)


Senior Equity Analytic
Senior Equity Analytic
Troubled Abans plc Profit for 9 months to Dec 2017 dropped by 85% from 320 mn to 50 mn.profit for 3 months to Dec 2017 dropped by 84% from 17 mn to 2 mn.Diversion funds to sister companies has resulted in 105 mn loss mainly related to the joint venture property development Colombo City Centre.

Due to One of the non independent director and audit committee chairman namely Hiran Embuldeniya (common director of Abans plc and Abans finance plc) , The group has failed to comply with corporate governance requirements set out in Rule 7.10 of listing rules.

Embuldeniya is the shareholder director of Ironwood Investment which holds major shares in Abans Finance . Due to this conflict of interest their shareholding (49.67%)in Abans Finance PLC along with Ironwood Investment(41.89.%) , sister companies (Able investment, A B Cold storage , A B Securitas , Cleantech)51.54% , directors (2.57%)and proxy employees (2.04%) is 98.04% resulting in public holding of 1.96% .

They have fraudulently declared to CSE as 8.10%.

Back to top  Message [Page 1 of 1]

Post new topic  Reply to topic

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