ABANS FINANCE UNDER INVESTIGATION BY CSE AND SEC?

by fortuneteller on Tue Jun 27, 2017 3:15 pm

Madatory Offer –Abans Finance PLC - Will it be another ANILANKA?
1)When Abans Finance was formed no cash was put in. -Hire Purchase portfolio was transferred as share capital.(Source-Central Bank of Sri Lanka).
2)When listing was made shares were fraudulently transferred to employees namely MRS. H G S CHANDRAKANTHI, MRS. M V I F FERNANDO, MR. A H A JAYASINGHE, MR. D S KARUNAKARAN, MR. K KUNENTHIRAN, MR. N N PERERA, MR. P K PESTONJEE, MISS. C V SUMANADASA, Mr S C H GAMAGE and MISS. I N JALALDEEN to cheat the CSE/SEC on “Public float rule”.(Source-Annual Report –AFSL. 2011/2012.)
3)These employees have no means to buy the shares and FCID should investigate under money laundering act(Source-Employees of Abans PLC)
4)CDS accounts were opened for MRS. M V I F FERNANDO, MR. A H A JAYASINGHE, MR. D S KARUNAKARAN, MR. N N PERERA and Mr S C H GAMAGE and MISS. I N JALALDEEN with Acquity stock brokers and JB stock brokers and shares sold fraudulently without payment of money.(Source- Acquity stock brokers and JB stock brokers.)
4)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 closer to 41.20 (highest 69.90) ,cheating the minority share holders(Source-stock exchange records)
5)Hiran Embuldeniya made application to buy shares even before the Company was incorporated on 13^th August 2015 with 2 ordinary shares of Rs 10.00 each . One share is owned by Hiran Embuldeniya and one share owned by Mr.Chanaka wickramasuriya(Source-Central Bank of Sri Lanka)
6)Seylan bank offered 2 times the asset value to buy the shares but private placement was at 1.33 times asset price to Ironwood.(Source-Seylan Bank)
7)A company named Able Investment was set up in 2016 to buy and transfer shares of employees 617,130 shares (1.11%)and the price at which such company bought is around Rs 45.00. The mandatory offer price as Abans and Ironwood have acted in concert (Source-Registrar of companies)

Cool

Able Investment (Private) Limited, A B Cold Storage ( Private) Limited, Cleantech ( Pvt ) Ltd and Cleantech ( Pvt ) Ltd are connected parties to Abans PLC and Mr.K.Kunenthiran, Mrs.C.V.Sumanadasa and Mrs.S.C.Henagama Gamage are proxy employees holding shares. Mr.P.N.Pestonjee, Mr.B.Pestonjee, Mr.R.Pestonjeen ,Mrs S.Dubash and Mrs.A.Pestonjee 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 December 2016.)
9)Poor CSE and SEC were cheated and taken for a ride(Source-Investors and General public.)
10)Mr Hiran Embuldeniya common Director of Abans and Ironwood continue to serve as Audit Committee Chairman and Independent Director(Source-Varners International-company secretaries)

by **worthiness** on Tue Jun 27, 2017 7:53 pm

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

by Eugine Fernando on Wed Jun 28, 2017 7:53 am

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

Another CIFL? Sad

by **worthiness** on Wed Jun 28, 2017 9:27 am

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

by Wimal Modawansa on Sat Jul 01, 2017 7:11 pm

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.

by fortuneteller on Wed Jul 05, 2017 9:39 am

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.

by nirowat on Wed Jul 05, 2017 10:36 am

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

by **worthiness** on Wed Jul 05, 2017 12:48 pm

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?

by Wimal Modawansa on Wed Jul 05, 2017 10:38 pm

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 %.

by Wimal Modawansa on Sat Jul 08, 2017 4:07 pm

-

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

by fortuneteller on Mon Jul 10, 2017 8:46 am

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.

by **worthiness** on Mon Jul 10, 2017 10:15 am

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.

by fortuneteller on Sat Jul 15, 2017 12:08 pm

Well said

by fortuneteller on Sat Jul 15, 2017 12:11 pm

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?

by fortuneteller on Tue Aug 01, 2017 8:08 pm

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 !!!

by Wimal Modawansa on Wed Aug 02, 2017 6:43 pm

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).

by fortuneteller on Thu Aug 03, 2017 12:56 pm

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%

by Wimal Modawansa on Sun Aug 06, 2017 6:34 pm

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?

by Wimal Modawansa on Tue Aug 08, 2017 12:48 pm

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?

by Wimal Modawansa on Thu Aug 10, 2017 10:43 am

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).

by **worthiness** on Thu Aug 10, 2017 10:00 pm

Any comments on ARPI & BFN.

by Wimal Modawansa on Tue Aug 15, 2017 5:24 pm

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.

ABANS FINANCE UNDER INVESTIGATION BY CSE AND SEC?