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Introduction – Bimputh Lanka Investments Limited (BLI

)

June - 2011

Bimputh Lanka Investments Limited (BLI)
Key Features
Total No of Shares CSE Listing Issue Type 20,200,002 Dirisavi Board Introduction

Bimputh Lanka Investments Limited (BLI) is a registered finance company (RFC No 033, company registration no: PB 3259) under Central Bank of Sri Lanka. The company’s main operations include micro finance. The Company is to list their ordinary shares on the Diri Savi Board of the CSE with the objective of compliance with the mandatory listing requirement of the CBSL to broad base the share ownership structure and to improve the transparency of the firm.

Major Revenue Streams

Hire Purchases 1% Unallocat ed 20%

Leasing 1%

Company Profile
Pawning Advance 0%

BLI commenced its business operations in 2006 with the primary focus on providing financial services, particularly to out growers of sugar cane in Ampara and Monaragala Districts. In addition to micro financing, BLI provides all other financing products offered by finance companies in general. BLI mainly operates in Monaragala and Ampara and within a short time frame; BLI has opened 6 branches in Ampara, Sevanagala, Uhana, Padiyathalawa, Maha Oya & Dehiattakandiya. In addition to the financial services, BLI purchases the harvest of sugar cane, paddy, maize, etc at Government guaranteed prices. BLI is committed to serve urban

Other Laons 78.56%

Board Of Directors Name Mr,Daya Gamage Mr, D.T. Kingsley Bernard Dr.(Mrs), Anoma Gamage Mr. G. Dayananda Pitadeniya Mr. Asoka Hemachandra Position Chairman Chief Executive Officer Non‐Executive Director Non‐Executive Director Non‐Executive Director

population the Pepiliyana Branch, based in Colombo was opened to cater to this market. Future Business Plans BLI further plans to enhance its presence in the country including the North and East planning to capitalize on the economic growth in the areas. The branch network will be strengthened further in Ampara and Monaragala areas by establishing new branches in appropriate locations. More over, BLI will introduce ATM machines in selected locations. When considering CSR activities, BLI will also assist villagers through Daya Sarana Foundation to improve their living standards. BLI will pay attention to maintain its well established risk management process and The Company has been rated BB by RAM Ratings (Lanka) Ltd. Key Financials – BLI
LKR (000) Total Income Interest Income Profit Before Tax Profit After Tax Loans & Advances Total Assets Deposits Shareholders Funds EPS (LKR) 31.12.2010 31.03.2010 31.03.2009 44,971 51,542 28,942 43,868 3,438 3,344 263,393 469,177 216,709 0.17 47,858 14,410 6,514 216,346 420,367 213,364 0.32 28,605 10,851 4,704 148,725 244,035 206,850 0.23

Shareholders

No: of Shares

% Share

Sevanagala Sugar Industries Ltd Daya Constructions (Pvt) Ltd Daya Apparel Exports (Pvt) Ltd Daya Group (Pvt) Ltd Mrs. Anoma Gamage Mr. Daya Gamage Miss. P.M.K. Gamage Mr. C.K Gamage Mr. A.D.S. Wickramarathna Mr. E.A. Gunawardana Others Total

4,890,000 2,500,000 2,500,000 2,500,000 2,455,001 2,455,001 1,228,350 1,228,350 20,000 17,500 405,800 20,200,002

24.21 12.38 12.38 12.38 12.15 12.15 6.08 6.08 0.10 0.09 2.00 100.00

Asha Phillip Securities Ltd – Equity Research Division

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Introduction – Bimputh Lanka Investments Limited (BLI)

June - 2011

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RFC Industry
Registered finance companies (RFC) in Sri Lanka are presently undergoing a rapid transformation phase fueled by the competition between industry incumbents and stringent regulatory barriers by the Central Bank of Sri Lanka. Presently, the industry possesses LKR 233.6 billion worth assets accounting for 3.4% of the financial sector assets. The industry had been a duopoly earlier recording 50% of the industry assets shared amongst the largest two firms ,The Finance PLC & the Central Finance PLC, total assets. Finance Companies business had to face difficulties in 2009 due to high interest rates and the increased credit and liquidity risks caused due to the collapse of certain unregulated finance companies, leading to a loss of investor confidence, which spread across the entire sector. The sector is steadily recovering as a result of the good governance and well adapted business practices undertaken by the RFCs together with the stringent regulations and supervision undertaken by the CBSL. dropped down to 37% in 2009.Further, largest 9 RFCs account for approximately 73% of the total assets, while 18 medium size RFCs record only 24% of

Asset Quality of RFC Industry
18 16 14 12
Rs.billion

12 10 8 6 4 2 0 2006 2007 2008 Gross NPA Ratio(%) 2009 2010 Net NPA Ratio(%)
%

10 8 6 4 2 0

Gross NPA's (Rs Bn)

Asha Phillip Securities Ltd – Equity Research Division

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Introduction – Bimputh Lanka Investments Limited (BLI)

June - 2011

Competitor Analysis
Bimputh Lanka Investment 2009/10 LKR Interest Income Operating profit Profit/ (loss) before tax Net Profit Total assets Total equity Operating Profit Margin Net Profit Margin Return on Equity EPS DPS AMW Captal Leasing 2009/2010 LKR 420,094,367 239,814,158 218,667,317 146,445,673 2,147,034,440 446,942,134 57.09% 34.86% 32.77% 7.32 1.50 Mercentile Investments 2009/2010 LKR 1,563,999,000 487,970,000 426,948,000 316,504,000 8,279,375,000 3,531,883,000 31.20% 20.24% 8.96% 105.5 4.60 Commercial Credit 2009/2010 LKR 346,843,191 7,823,352 (25,942,410) 45,190,103 2,300,686,646 226,924,740 2.26% 13.03% 19.91% 1.08 Multi Finance 2009/2010 LKR 80,643,915 13,517,112 13,589,126 5,896,930 423,290,818 247,949,486 16.76% 7.31% 2.38% 0.33 Swarnamahal 2009/2010 LKR 425,680,931 25,676,676 23,392,952 16,782,611 2,418,684,523 230,984,854 6.03% 3.94% 7.27% 0.72 Chilaw Finance 2009/2010 LKR 122,217,218 43,042,851 33,974,513 25,975,281 679,610,678 296,621,943 35.22% 21.25% 8.76% 0.95 0.75 Central Finance 2009/2010 LKR 7,601,262,000 1,842,517,000 2,040,094,000 1,124,835,000 35,477,281,000 9,126,954,000 24.24% 14.80% 12.32% 51.53 2.50 The Finance Company 2009/2010 LKR 5,203,999,903 -3,692,079,619 -4,285,937,282 -4,285,937,282 27,454,894,383 -2,916,806,296 -70.95% -82.36% 146.94% -209.9 L B Finance 2009/2010 LKR 4,130,993,392 1,038,033,655 878,290,108 500,161,124 17,185,262,704 1,756,432,609 25.13% 12.11% 28.48% 14.44 5.00

47,857,856.34 17,748,637.13 14,409,783.51 6,513,833.14
420,366,952 213,364,164 37.09% 13.61% 3.05% 0.32

This document has been prepared and issued by Asha Phillip Securities Ltd, on the basis of publicly available information, internally developed data and other sources, believed to be reliable. Whilst all responsible care has been taken to ensure that the facts stated are accurate and the opinions given are fair and reasonable neither Asha Phillip Securities Ltd, nor any Director, Officer or employee, shall in any way be responsible for the contents. Asha Phillip Securities Ltd may act as a Broker in the investments which are the subject of this document or related investments and may have acted upon or used the information contained in this document, or the research or analysis on which it is based, before its publication. Asha Phillip Securities Ltd., Its Directors, Officers or Employees may also have a position or be otherwise interested in the investments referred to in this document. This is not an offer to sell or buy the investments referred to in this document.
Asha Phillip Securities Ltd – Equity Research Division 3