ABANS FINANCE UNDER INVESTIGATION BY CSE AND SEC?

Is there a red light for those who placed fixed deposits at Abans finance?

@worthiness wrote:Is there a red light for those who placed fixed deposits at Abans finance?

Another CIFL?

This alarming situation will hit share price of the counter unless strong statement given by ABANS. Wouldn't be?

One of the independent directors have claimed legal charges of Rs 5.2 Mn in the name of his sister in law.This was found out by the Central Bank.Subsequently the inspecting officers were requested to put their fingings under  the carpet.

BE CAUTIOUS - Abans Finance PLC will loose the status of Subsidiary of Abans PLC after they reduce their holding to less than 50% by selling their shares to Ironwood Investments.

Common sense tell you to withdraw all your fixed deposits now
Also for the retailers to delete this company from the watch list and not even read any articles about it
Avoid like the plague

Hats off to fortune teller and Wimal

As of 31st March Abans Plc holds 71.6% of shares of Abans Finance Plc. whereas Ironwood investment got 19.95% holding. 

With on going share acquisition what will be the share holding % of Abans Plc & Ironwood investment?

If the Name is to be changed  to Ironwood Finance PLC , the total share holding of troubled Abans group  and proxy shareholding needs to be reduced to at least 49.99 %.

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RATIOS OF ABANS FINANCE PLC

-Net Asset Value  Rs 22.35
-P/E market         Rs 32.64
-P/E Sector          Rs 16.16
-Residual Income Rs 35.53


IRONWOOD CAPITAL HAS NOT CREATED ANY VALUE TO ABANS FINANCE FROM 1ST APRIL TO 30TH JUNE 2017.

BUT THE SHARE WHICH WAS TRADING @ 69.90 HAS DROPED TO RS 25.00



Will You accept the Mandatory offer @ Rs 25.00

DOES THIS NEWS ITEM ON EXCHANGE CONTROL FRAUD HAVE ANY RELEVANCE TO TWO SENIOR OFFICIALS OF "A FINANCE COMPANY" FOR WHICH MANDATORY OFFER IS MADE?                                                                                                 
•Customs probe continues into luxury car undervaluation. •Sri Lanka Customs is still to complete an investigation into a massive vehicle racket of importing 1500 undervalued luxury cars in 2015 causing a loss of billions of rupees to the country, officials alleged. •These investigations are yet to be completed due to the complex nature of the racket involving a private vehicle firm and a leasing company (which changed its name after the fraud was detected) which is a subsidiary of a bank, Customs spokesman Dharmasena Kahandawa reported. •This private vehicle importer had registered a company overseas and the luxury cars were imported through this company for several local car dealers, he said, adding that a leasing company which (changed its name after fraud was detected) is a subsidiary of a bank has provided loans to import those vehicles. •The modus operandi of the racket was to open Letters of Credit (LCs) for a value less than the actual value under the name of the overseas company and brought down those vehicles without directly importing from the manufacturing company in Germany. •Racketeers have imported those vehicles using duty free and duty slashed permits issued to Ministers, MPs, provincial councilors and senior government officials, a Customs trade union leader said. •He noted that a senior official of customs has lodged a complaint at the Bribery or Corruption Investigation Commission claiming that this custom duty fraud had taken place with the knowledge of a top politician in the country. •Already the Government has forfeited a staggering Rs. 57 billion in revenue granting duty free concessions for import of vehicles for public servants, Treasury data revealed. •The duty free permit only allows a senior official to import a vehicle valued at less than US$35,000. Most officials sell those permits as they don’t have money to import a vehicle even on a permit. •Some motor traders purchase these permits and use the permits to import luxury vehicles, he said. •He said these companies also receive a tariff relief on the declared value of less than US$35,000 when importing the vehicles. •He said the companies pay about 0.45 per cent tax to the Customs instead of the actual taxes of 352.12 per cent. •At least Rs 13.9 million per vehicle was being lost by not levying the actual duty, levies and other charges, he disclosed.

In this country all frauds are buried under the carpet. Irrespective of many committees, agencies set up in looking for thieves involved nothing has been revealed over years. At current pace government coffers will never be filled with recoveries of lost revenue. This means whoever rules the country a group of thieves simply manage robbing of peoples' money.

Well said

Abans Finance downgraded to associate company of Abans Group and lose it's subsidiary status.
Ironwood Investment Holdings (Private) Limited which successfully concluded the Mandatory offer of Abans Finance PLC is likely to replace the Chairman by an independent Professional Shortly?

Abans 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)
-Poor CSE and SEC , 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(Varners International-company secretaries)
-WHAT A MANUPULATION OF CORPORATE GOVERNANCE !!!

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%

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?

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?

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).

Any comments on ARPI & BFN.