CSD - 31.12.2011

Gaja · 1 CSD - 31.12.2011 Wed Feb 29, 2012 3:59 pm

Gaja

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http://www.cse.lk/cmt/upload_report_file/617_1330509924086.pdf

UKboy · 2 Re: CSD - 31.12.2011 Wed Feb 29, 2012 11:42 pm

UKboy

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Gaja wrote:http://www.cse.lk/cmt/upload_report_file/617_1330509924086.pdf

Can someone please explain/guess what triggers the Provision / Impairment for investments loss so high? scratch

Eventhough I dont have any shares I'm just curious to know.

Tiger · 3 Re: CSD - 31.12.2011 Thu Mar 01, 2012 12:42 am

Tiger

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It looks to me that their investment in short term (possibly in CSE) has gone horribly wrong.
May be the investment of 75Million now worth only 25Million, since its held for sale security they have to value at market value.

greedy · 4 Re: CSD - 31.12.2011 Thu Mar 01, 2012 1:02 am

greedy

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There are few possibilities for Provision / Impairment for investments of Rs. 132,296K.

1) The property at No.257, Union Place, Colombo 02 has to be revalued this year. The last valuation date is 28/12/2008 and as per company policy, investments properties are revalued in every three years time. Therefore, a valuation should be carried out as of 28/12/2011. This property was valued at Rs.250,255K in 28/12/2008. They tried to sell this in 2010 and 2011 also.
Don't know if they have sold at a loss this property or valued at lower than last valuation.

2) They had three Investments in Property Development Projects as per 2010 annual report.
Ja _Ela Commercial Complex Rs.70,351K
Moratuwa Housing Project Rs.140,301K
Nawala Project Nil Value
Total Value Rs.210,651K

The during 2011 quarterly accounts were keep on changing.....
31/03/2011 Rs.206,724K
30/06/2011 Rs.203,753K
30/09/2011 Rs.178,308K
31/12/2011 NIl

If you look at 31/12/2011 quarterly accounts these three projects have nil value (missing in the balance sheet). May be they sold them but I don't see much cash inflows from the sale. However, Inventories have gone up to 43,869K from 1,205K as of 30/09/2011. possible scenario partly written off and balance taken to inventory hoping to sell soon

3) Combination of Possibility 1 & 2 above.

greedy · 5 Re: CSD - 31.12.2011 Thu Mar 01, 2012 1:09 am

greedy

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My Guess is that the last three projects have been written off partly and balance taken to Inventories. Because, in September accounts they had these projects at a value of 178mn but in December accounts nil. But you wont see any cash inflows relating to this in cash flow statement!

Another possibility is also there accountants screwing up the accounts Smile