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Introduction – Associated Motor Finance Company Ltd

June - 2011

Associated Motor Finance Company Ltd
Key Features
Total No of Shares CSE Listing Issue Type 5,608,355 Dirisavi Board Introduction
Associated Motor Finance Company Ltd is a registered finance company under the Central Bank of Sri Lanka (CBSL). 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 CBSL prior to 30th of June 2011 in order to broad base the share ownership structure and to improve the transparency of the firm.

Company Profile
Major Revenue Streams

AMFCL was incorporated in Sri Lanka under the companies’ ordinance on the 25th July 1962 in Colombo, Sri Lanka. The Company re-registered under the companies

10% 11% 6% 4% 69%

Act No. 7 of 2007in November 2008. The company provides its services to a segment of the market considered by its pears as a high risk market segment. AMFL does claim to have had handle this segment effectively and efficiently. The company provides its leasing and hire purchase facilities for unregistered and registered Motor Cycles and Three Wheelers. The company claims to have no diseconomies of scales due to the absence of a branch network. The company has utilized the facilities of the suppliers and bankers. The company has come about this by using the suppliers for

Income from Leasing Service Finance Government Securities

Hire Purchases Interest on overdue Rentals

the marketing sales of the products, for the monthly payment the customers can pay through any commercial bank in the island. Thereby expanding the companies reach in a non conventional way. The company’s product port folio consists of the following, • Acceptance of Public Deposits

Top 05 Shareholders

Shareholder M/S Imprial Import & Export Company (Pvt) Ltd Dayawansa John Paulu Irugalbandarage Nalatha Geewandarage Jinawathie Perera Dayawansa Ayanthi Shammalka Dayawansa John Paulu Irugalbandarage Nadishka

% Stake 77.09 7.11 3.41 1.57 1.18

• Leasing & Hire Purchase • Loans for Small & Medium Entrepreneurs • Real Estate Trading • Promissory Loans • Mortgage Loans • Import and Trading of Private and Commercial Vehicles • Rent a Car service

Asha Phillip Securities Ltd – Equity Research Division


Introduction – Associated Motor Finance Company Ltd

June - 2011

Future Business Plans
Board Of Directors Dr. Rohan Karunaratne J P I Nalatha Dayawansa Mrs. W A S Dayawansa J P I Shanil Dayawansa K D L Nanayakkara L Edirisooriya

The company plans to expand as to achieve the status of a medium size company by the financial year 2013/2014. To achieve this, the company will focus more on its core operations of leasing motor cycles & three wheelers due to the market for this segment experiencing development within the economy. With the economic development the import, export markets have seen growth within the island. This has further positively affected the port operations with container volumes increasing, therefore the market has experienced an increase in the demand for Prime movers the company will further invest in this business segment as the operations have been successful so far. The company has stated a requirement of LKR 100 Million to fulfill the above mentioned plan and will raise this capitol through, 1. Obtaining a bank overdraft facility upon a property mortgage to full fill the short term working capital to import the Prime movers. 2. Will utilize the internally generated cash flows. 3. Will run a campaign to increase the company’s public deposits.

Key Financials – Associated Motor Finance
LKR Mn Interest Income Net Interest Income Profit Before Tax Profit After Tax Total Assets Deposits Shareholders Funds EPS (LKR) NAVPS (LKR) 31.03.2011 152 103 81 67 797 40 333 11.90 59.37 31.03.2010 123 71 42 63 627 161 266 11.83 47.37 31.03.2009 133 76 48 69.0 486 16 196 13.32 35.35 31.03.2008 92 55 30 36.0 369 15 127 6.95 22.6

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 2