Jumping Ship !

Kithsiri · 1 Jumping Ship ! Mon Aug 12, 2013 10:20 pm

Kithsiri

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I am seriously considering jumping ship.
GLAS has given me reasonable returns but now I am seriously contemplating of leaving that counter and invest that money in a truly Sri Lankan counter like RICH.
The reason being that I feel the Indian management is siphoning off most of the profits on the pretext of technical expertise rendering there.

salt · 2 Re: Jumping Ship ! Mon Aug 12, 2013 10:31 pm

salt

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Correct, but be careful with Rich

ccsentha · 3 Re: Jumping Ship ! Tue Aug 13, 2013 2:14 am

ccsentha

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Kithsiri wrote:I am seriously considering jumping ship.
GLAS has given me reasonable returns but now I am seriously contemplating of leaving that counter and invest that money in a truly Sri Lankan counter like RICH.
The reason being that I feel the Indian management is siphoning off most of the profits on the pretext of technical expertise rendering there.

Mate where did you find that "technical expertise" thing? i checked the quarter report, but couldn't find anything like that, could you please post the link which has the technical "expertise" thing.

salt · 4 Re: Jumping Ship ! Tue Aug 13, 2013 10:12 am

salt

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Go & check annual report. You have technical fee note , its 5% of revenue. it sucks

ccsentha · 5 Re: Jumping Ship ! Tue Aug 13, 2013 10:49 am

ccsentha

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salt wrote:Go & check annual report. You have technical fee note , its 5% of revenue. it sucks

yup, just checked, u ar correct. what a piece of bull shit, how come this be allowed? It's their parent company, they are indeed supposed to offer needed help to their subsidiary. given that Both are in same business, it's rediculos for the parent company to charge a fee, it's big amount too 5% / 12.5% of the turnover, that's huge.

this cheating, they are cleverly taking out the profits without it being shared among other share holders. if they declare the profits as dividend and take it out of the company it would be shared among all share holders ne.

I think people should make this public as much as possible so that this come to light!!!!!!!!!

ccsentha · 6 Re: Jumping Ship ! Tue Aug 13, 2013 11:14 am

ccsentha

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Technical Fees for 2013 - 258,516,301
Net Profit for 2013 - 724,376,500

So almost 33.3% of potential profit is lost because of the technical fee paid to parent company (5% of the turnover)

whit out the technical fee profits would have been 982.8M, now this is a BIG DIFFERENCE!!!!

hope GOSL can stop this

Gaja · 7 Re: Jumping Ship ! Tue Aug 13, 2013 11:44 am

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ccsentha wrote:Technical Fees for 2013 - 258,516,301
Net Profit for 2013 - 724,376,500

So almost 33.3% of potential profit is lost because of the technical fee paid to parent company (5% of the turnover)

whit out the technical fee profits would have been 982.8M, now this is a BIG DIFFERENCE!!!!

hope GOSL can stop this

Friend this is not only relevant to this, most of the companies do the same thing, see the results of the plantations companies where at times the companies reported losses due to the Management Fees, the hotel management companies do the same.

ccsentha · 8 Re: Jumping Ship ! Tue Aug 13, 2013 12:06 pm

ccsentha

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Gaja wrote:

ccsentha wrote:Technical Fees for 2013 - 258,516,301
Net Profit for 2013 - 724,376,500

So almost 33.3% of potential profit is lost because of the technical fee paid to parent company (5% of the turnover)

whit out the technical fee profits would have been 982.8M, now this is a BIG DIFFERENCE!!!!

hope GOSL can stop this

Friend this is not only relevant to this, most of the companies do the same thing, see the results of the plantations companies where at times the companies reported losses due to the Management Fees, the hotel management companies do the same.

but at least that has some validity as they are taking part of the management, hotel/plantation is owned by some one and another is managing it, but to take 33.3% of potential profit as technical help is ridiculous to say the least.