Capital Development and Investment Company PLC (CDIC), 99.7% owned by the NDB, has grown revenue 32% to Rs.612.9 million in the year ended December 31, 2008 while its profit after-tax was up 10% to Rs.547.8 million from Rs.498.4 million earned the previous year.
CDIC Chairman Lal de Mel has said in the annual report that the company at present holds 36.27% of the issued share capital of the Eagle Insurance Company which is its only strategic investment.
However the board hopes to attract strategic investments which will yield high returns in the future but meanwhile has invested in some selected securitization investments, a commercial paper and a debenture with short tenures during the past year.
Investments were running at a hefty Rs.2.9 billion, up 13% from Rs.2.6 billion the previous year.
CDIC had received a profit share of Rs.157.2 million from its associate, Eagle Insurance, down 20% from Rs.197.1 million received on this account the previous year.
Despite its substantial investment of slightly over a billion rupees in 36.3% of Eagle and the Rs.2.9 billion held in other investments, the CDIC share price varied between Rs.120 and Rs.75 during the year.
The directors have recommended a final dividend of Rs.3.13 per share against Rs.2.85 a share paid the previous year.
CDIC has a stated capital of Rs.1.33 billion, a general reserve of Rs.289.7 million and accumulated profits of Rs.2.6 billion in its books, up 20% from Rs.2.2 billion the previous year.
The year under review had seen Mr. N.S. Welikala, a former Director/CEO of the NDB who resigned from the CDIC board earlier in the year following his retirement from the bank re-appointed later in the year while Mr. Eran Wickremaratne, his successor as Director/CEO of the NDB appointed to the board with effect from May 2008. Mr. Ajith Wickremaratne, Vice President and Head of Corporate Banking at the NDB Bank has also joined the board of CDIC.
All four directors of CDIC sit on the board in a non-executive capacity, but are not independent due to their involvement in the parent company. CDIC said that it was taking steps to adhere to the requirement of the Companies Law in this respect.
The directors of the company are: Messrs. Lal de Mel (Chairman), N.S. Welikala, A.R. Gunasekra (Resigned 31.12.2008), K. Dharmasiri (Resigned 16.07.2008), Eran Wickramaratne and Ajith Wickremaratne.