S.F. Doubles Stated Capital
Singer Finance (S.F.), increasing its stated capital to Rs. 400 million through a Rs. 200 million equity investment made by Singer (Sri Lanka), took a significant step towards further bolstering its strength and dependability.
With this additional investment, S.F. currently has twice the stated capital mandated by the Central Bank of Sri Lanka (C.B.S.L.) for registered finance companies (r.f.c.s).
S.F. began operations in 2004 as a specialised leasing firm and was registered with C.B.S.L’s Monetary Board in 2005 as an r.f.c. With over 125 years of credit exposure, Singer (Sri Lanka) is the main shareholder of S.F., counting over 125 years of experience in the credit field and pioneering hire purchase in Sri Lanka. With its financial and management expertise, it has steered S.F. to a leadership position in the finance sector.
S.F. recorded Net Profit Before Tax of Rs. 75 mn. and Net Profit After Tax of Rs 35 mn. during the 10 months period ended Oct. 31, ‘09 which is a significant achievement in profitability comparing with the current economic condition.
As of October 2009 S.F.’s asset base has grown to Rs. 2.9 billion while shareholders’ funds has increased to Rs. 473 million with the recent infusion of new stated capital. Additionally, as a result of the increase in stated capital, the Company’s Capital Adequacy Ratio has increased to 16.55%, well over the minimum 10% ratio required by C.B.S.L. directions. The Company follows a strict provisioning policy on Non-Performing Loans that is far more stringent than C.B.S.L.’s stipulated minimum requirement to the industry. In spite of the difficult financial climate that prevailed, S.F.’s deposit base has also grown to Rs. 1.39 billion.
Over the past five years S.F. has engaged in the financing of all types of capital goods and agricultural equipment as well as products marketed by Singer (Sri Lanka). Today, the Company has five fully fledged branches and four service centres located at Singer Plus outlets in the North Central, Uva and Southern provinces. These service centres are one aspect of the Company’s policy of providing the highest quality of service to outstation customers. S.F. is also involved in group sales to employees of various institutions in both the public and private sectors.
The Company’s five branches are linked to the Head Office through a state-of-the-art online system that delivers hassle-free and efficient service to its loyal customers. The Company also has implemented a robust offsite Disaster Recovery System that maintains mirror records of all database transactions, ensuring that customer information is always secure in case of emergencies. S.F. is committed to the highest standards of customer convenience and has partnered with Singer (Sri Lanka), the country’s largest retailer, to accept hire purchase and leasing rental payments at more than 350 of its sales outlets. This facility is especially useful to outstation residents who may have limited accessibility to banks.
Singer Finance’s Director Board includes Dr. G.C.B. Wijeyesinghe, Dr. S. Kelegama, Kamal Shah, H.A. Pieris, M.P.A. Salgado, S. Ramanathan (Alternate Director), and R.S. Wijeweera, who is the Company’s CEO. The Company’s Chairman Hemaka Amarasuriya, is a visionary business leader, and also Singer (Sri Lanka) Chairman and a board directors of several listed companies, in addition to being a Singer Asia Ltd and its parent company Retail Holdings Ltd U.S.A. Senior Vice President.
With the best financial, management and technological systems in place, S.F. has the strength and flexibility to adapt to customer demands and looks certain to continue to provide industry-best levels of quality service.
