Industrial Finance profits down

Industrial Finance Limited, an unquoted finance company incorporated in 1962, have posted an after-tax profit of Rs. 3.1 million during the year ended March 31, 2003, down from a profit of Rs. 4.5 million a year earlier.

The directors have said that although there has been an increase in net income, administrative and establishment expenses have increased largely on account of depreciation and amortisation and these with increased finance costs resulted in the lower profit.

"Market forces have rendered a narrowing of the spread between the borrowing and lending rates. With this background the increase in turnover has not brought an appreciable increase in returns," they added.

They have also reported constraints regarding the recovery of dues due to delays in the legal system with efforts by non-banking institutions to obtain parate powers and to increase the number of courts to dispose of debt recovery cases had not met with much success.

They have, however, said that the relevant authorities have been "very cooperative."

The directors have recommended a dividend of 7% out of the profits of the year under review, down from the 10% dividend declared the previous year.

Industrial Finance has an issued capital of Rs. 9.1 million, reserves of Rs. 13.4 million and accumulated profits of Rs. 9.4 million, the directors said.

The directors of the company are: Messrs. Ray de Costa (Chairman), Rohan R. Tudawe (MD), Sunil de Costa and W.N. Tudawe.