CIFL-high risk-RAM overview-OCTOBER 2009

mark · 1 CIFL-high risk-RAM overview-OCTOBER 2009 Thu Jul 14, 2011 11:32 am

mark

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i saw many more positive and negative discussions about CIFL,to me this is not worth,see the following news item..

*RAM Ratings Lanka has downgraded the long-term financial institution rating of
Central Investments and Finance Limited (“CIFL” or “the Company”), from B+ to C-; the short-term rating remains at N P .The downgrade reflects the Company’s severe liquidity pressure and the acute deterioration in its asset quality as well as financial performance.

*Financial Institution Ratings:
Long-term: C-[Downgraded]
Short-term: NP [Reaffirmed]

*Rating Outlook:-Stable

*Weaknesses:
- Significant exposure to real estate
- Concentration risk in realestate investments
- Hefty overheads
- Fragile funding and liquidity positions

CIFL-high risk-RAM overview-OCTOBER 2009 Viewer?pid=bl&srcid=ADGEESiQ_1H_k8bVLO7OvEei7YPtjdG3eske_vReDorWFXoDPa4wqBJMjzVHNBEPYfy6Ur1yJN5I4R5x8zgyyB-2SwctkrzFfz4ds8pbFIL8uLlGOdzyvtzX-HOiEN7Bhyk5WWNknAl8&q=cache%3A76UC71v7-HoJ%3Awww.ram.com.lk%2Freports%2F1269580259

CIFL-high risk-RAM overview-OCTOBER 2009 Viewer?pid=bl&srcid=ADGEESiQ_1H_k8bVLO7OvEei7YPtjdG3eske_vReDorWFXoDPa4wqBJMjzVHNBEPYfy6Ur1yJN5I4R5x8zgyyB-2SwctkrzFfz4ds8pbFIL8uLlGOdzyvtzX-HOiEN7Bhyk5WWNknAl8&q=cache%3A76UC71v7-HoJ%3Awww.ram.com.lk%2Freports%2F1269580259

read more at

http://www.ram.com.lk/reports/1269580259.pdf

https://docs.google.com/viewer?a=v&q=cache:76UC71v7-HoJ:www.ram.com.lk/reports/1269580259.pdf+central+investment+and+finance+limited+law+issues&hl=en&gl=lk&pid=bl&srcid=ADGEESiQ_1H_k8bVLO7OvEei7YPtjdG3eske_vReDorWFXoDPa4wqBJMjzVHNBEPYfy6Ur1yJN5I4R5x8zgyyB-2SwctkrzFfz4ds8pbFIL8uLlGOdzyvtzX-HOiEN7Bhyk5WWNknAl8&sig=AHIEtbT_19arT8Kgki8kdJ6PCQZHdCeGUQ

i know this is little old news,but please get your decision wisely...
note-ill remove this article if i get negative rep,bcoz i got some negative for some posts which have no issues:(

Last edited by mark on Thu Jul 14, 2011 11:56 am; edited 1 time in total

mark · 2 Re: CIFL-high risk-RAM overview-OCTOBER 2009 Thu Jul 14, 2011 11:44 am

mark

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*CIFL’s liquidity position had again been
strained.By April 2009 ,the situation had worsened significantly,as the
Company could not cope with withdrawal pressures because most of its investments were in real estates which dont generated good cash flows,In an effort to ease the liquidity stress, CIFL had negotiated with its depositors to renew their deposits; in some cases, the depositors had been given houses as settlement.

*Meanwhile, CIFL has continued increasing its investments in real estate, which
made up 64.86% of its asset base as at end-September 2009.

i dont know why they went for a little value IPO,if they have liquidity issue,then they had to went for at least 1Bn value IPO,btw the price should be less than the 10Rs in that case..even 10Rs is high for such company.

i fell they may go for right issues after listing,bcoz they need capital infusion.

mark · 3 RAM-2009 March Thu Jul 14, 2011 11:55 am

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http://www.ram.com.lk/reports/1271655798.pdf

*RAM Ratings Lanka has reaffirmed the long- and short-term financial institution ratings of Central Investments and Finance Limited (“CIFL” or “the Company”), at B+ and NP; the outlook on the long-term rating has been revised from stable to negative. The negative outlook on the rating is premised on the Company’s significant exposure to real estate, which has in turn dragged down its performance and exerted pressure on its liquidity position and capital adequacy.

*CIFL, which was previously a very small family concern,has been taken over by
Aspic Corporation Limited (“Aspic Group”).The Company has been expanding rapidly under the new management

btw this all are past,we should consider the future existence of this firm, by the IPO money they may get a chance to recover,but it may take time..