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Sri Lanka Equity Forum » Stock Market Talk » Abans finance PLC in deep trouble?

Abans finance PLC in deep trouble?

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1 Abans finance PLC in deep trouble? on Sun Apr 08, 2018 11:58 am

fortuneteller

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Senior Equity Analytic
Senior Equity Analytic
Abans Finance Plc was a well run company under the previous management and the share was trading @69.90. Since, Ironwood Investment took over the management control from 1st April 2016 , the performance steeply declined.

The non performing facilities increased (108%) and impairment steeply increased and profit declined sharply by (47 %) [Source-CSE records].

Independent Directors Choksy and Ratnayake (connected to Abans group ) were not able to improve the performance. The investors in to Ironwood investments were pressurizing non- independent Director Parekh ( and his alternate Wickramasuriya) to improve the performance or exit from the investment as they continue to incur capital losses (share trading @ 21 down from acquired price of 25 and original price of 69.90). [Source-CSE records]

However, the investment cannot be sold before 3 years as stipulated by CBSL. Abans has also included the shares owned by connect companies such as Able Investments and allocated to nominee staff members within the free float and misled the CSE and SEC.

Frequent quarrels between the CEO (who is responsible for decline in profits , uses filth in speaking with staff) and COO ( who is responsible for increase in impairment , harasses mainly female staff members) has become a hindrance to the performance. [Source- staff]

In this scenario where the performance of Abans Finance cannot be improved , the share price is likely to decline further. The share holders and investors are advised to be cautious in investing in this share.

2 Re: Abans finance PLC in deep trouble? on Tue Apr 10, 2018 9:58 am

Wimal Modawansa

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Manager - Equity Analytics
Manager - Equity Analytics
Is Appleby trust (caymon ) Ltd of Clifton house,75, Fort street, Grand Cayman KY1-1108,Cayman Island forcing Ironwood Investment partners to sell Abans Finance shares.

In such case all investors should exit the investment before they sell. If that happens the share price will drop sharply!

3 Re: Abans finance PLC in deep trouble? on Wed Apr 11, 2018 12:50 pm

fortuneteller

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Senior Equity Analytic
Senior Equity Analytic
ABANS GROUP REWARDED  ITS LONG STANDING EMPLOYEES.                                                                                                                                •The following staff members of Abans are multi millionaires now after owning shares in Abans Finance PLC.                                                                                                                                  •MRS. H G S CHANDRAKANTHI
370,000 shares (1.00%)
• MRS. M V I F FERNANDO
370,000 shares (1.00%)
•MR. A H A JAYASINGHE                        370,000 shares (1.00%)
•MR. D S KARUNAKARAN
370,000 shares (1.00 %)
•MR. K KUNENTHIRAN
370,000 shares (1.00 %)
•MR. N N PERERA
370,000 shares (1.00 %)
•MR. P K PESTONJEE
370,000 shares (1.00 %)
•MISS. C V SUMANADASA
370,000 shares (1.00 %)
•MISS. I N JALALDEEN
368,500 shares (1.00 %)

All these employees who held 1.00 % each are now multi millionaires (except Mr.K.Kunenthiran and Miss.C.V.Sumanadasa all others have sold their shares) .

(source - Annual reports and CSE records)



Last edited by fortuneteller on Wed Apr 11, 2018 12:52 pm; edited 1 time in total (Reason for editing : to include source)

4 Re: Abans finance PLC in deep trouble? on Wed Apr 11, 2018 5:44 pm

EquityChamp

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Moderator
Why don't you join with their audit team and conduct an audit so that you can publish a full audit report here.

5 Re: Abans finance PLC in deep trouble? on Wed Apr 11, 2018 8:18 pm

Wimal Modawansa

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Manager - Equity Analytics
Manager - Equity Analytics
Very useful analysis "Fortune teller" - now we can check whether employee shares have been transferred to Able Investment and other proxies to mislead the CSE or whether the employees have sold the shares and made profits.                                                                                                 Does it mean that the declared free float also has been manipulated with the assistance of secretaries - Varners International?

6 Re: Abans finance PLC in deep trouble? on Thu Apr 12, 2018 6:53 am

EquityChamp

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Moderator
@Wimal Modawansa wrote:Very useful analysis "Fortune teller" - now we can check whether employee shares have been transferred to Able Investment and other proxies to mislead the CSE or whether the employees have sold the shares and made profits.                                                                                                 Does it mean that the declared free float also has been manipulated with the assistance of secretaries - Varners International?
Good check and let us know. Razz

7 Re: Abans finance PLC in deep trouble? on Thu Apr 12, 2018 7:09 pm

fortuneteller

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Senior Equity Analytic
Senior Equity Analytic
These are the positions held by the proxy employees -

MRS. H G S CHANDRAKANTHI ( secretary to Mrs Pestonjee)
370,000 shares (1.00%)
• MRS. M V I F FERNANDO
(Mother in law)370,000 shares (1.00%)
•MR. A H A JAYASINGHE
(GM)(370,000 shares (1.00%)
•MR. D S KARUNAKARAN
(Son in law of Director)370,000 shares (1.00 %)
•MR. K KUNENTHIRAN
(DGM)370,000 shares (1.00 %)
•MR. N N PERERA
(Director) 370,000 shares (1.00 %)
•MR. P K PESTONJEE
(Director)370,000 shares (1.00 %)
•MISS. C V SUMANADASA
( DGM-hr)370,000 shares (1.00 %)
•MISS. I N JALALDEEN
( secretary to Mr. Pestonjee) 368,500 shares (1.00 %)


(All these employees who held 1.00 % each except Mr.K.Kunenthiran and Miss.C.V.Sumanadasa have sold their shares) .


No issues of recognizing staff of parent company and rewarding them.

But ,the issue is manipulating and misleading the regulators and transferring employee shares to connected companies such as Able Investments and other group companies and Directors.



Public holding figure of 8.10% and number of public share holder number of 811 looks a manipulated figure. 


Innocent minority share holders who relay on the published figures may be taken for ride and will incur capital losses.


Minority share holders - Be cautious!

8 Re: Abans finance PLC in deep trouble? on Fri Apr 13, 2018 8:03 pm

Wimal Modawansa

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Excellent analysis “Fortune teller”. Based on the information as at 31st March 2017,

1.Abans PLC 33,063,877 49.67%

2 Ironwood Investment Holding Pvt Ltd 27,881,236 41.89%

3 Mr.Peston Nadirshah Pestonjee 911,520 1.37%

4 Able Investments (Private) Limited 806,917 1.21%

5 Mr.Kurusamy Kunenthiran 466,816 0.70%

6 Mrs.Srimathie Chandrakanthi Henagama Gamage 444,000 0.67%

7 Mrs.Champika Vilasini Sumanadasa 444,000 0.67%

8 Mr.Behman Pestonjee 308,160 0.46%

9 Mr.Rusi Pestonjee* 220,660 0.33%

10 Mrs.Saroshi Dubash 192,423 0.29%

11 A B Cold Storage (Pvt) Limited 144,000 0.22%

12 Ab Securitas (Private) Limited 144,000 0.22%

13 Cleantech Pvt Ltd 144,000 0.22%

14 Mrs.Aban Pestonjee 80,000 0.12%

15 Mrs.Helena Irene Salgado 66,600 0.10%

16 Mr.Gajath Chrysantha Goonetilleke 48,105 0.07%

17Nation Lanka Capital Ltd/Karagoda Loku Gamage Uday 38,004 0.06%

18 Mr.Ravindra Erle Rambukwelle 37,120 0.06%

19 Miss Mohamed Farook Fathima Safina 36,748 0.06%

20 Dr.Kandasamy Poologasundram 36,000 0.05%

65,514,186 98.43%

Others 1,047,387 1.57%

Total 66,561,573 100.00%

Number 1 to 14 are connected parties and proxy employees  who collectively owns 98.03%


Based on the above public shareholding is only 1.97%(sectaries -Varners Internationals maintains it is 8.10%)


Since the main shareholders will have to sell down upto 10% of the shares to satisfy the continuing listing requirement another 8.03% will have to be sold by the major shareholders.

This may result in the share price crashing further.

Investors be cautious.

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