Haycarb celebrates 25 years

Haycarb's fourth Convention for its international distributors is to be held in Colombo on 30th and 31st July. The first was held in South Africa in 1988, and the others in Sri Lanka and Thailand in 1991 and 1994 respectively. More than 15 delegates from various countries are expected to attend.

The company started business 25 years ago with an Issued Capital of Rs. 1.25 million. Today, Consolidated Nett Assets are over Rs. 900 million. The sales turnover, largely as nett foreign exchange earnings to the country, is over Rs. 1.0 billion.

The 700-tonnes/year Coconut Shell Activated Carbon Plant at Madampe NWP, the first in any coconut producing country, has expanded to 9000 tonnes, augmented by the Badalgama factory of capacity 4000 tonnes and Pelacco's Extruded pellet plant of 1200 tonnes. Haycarb also owns 50% of Carbokarn Company Limited in Thailand, with a capacity of 3500 tonnes and manages its production and export sales. The Group is the largest Shell Carbon activator in the world. Eurocarb Products Limited, UK, is a fully owned subsidiary with value adding processes, technical service laboratories and warehouses in Avonmouth.

Haycarb Holdings Australia, which is similarly owned, is based in Melbourne. Haycarb has a 49% interest in Haymark Inc. USA, located in Texas. It has more than 10 distributors in other countries.

Activated Coconut Shell Carbon is used in Gold Recovery from Ore using the Carbon in Pulp or Leach process developed in the mid 1970's. Haycarb is well known in the Gold Mine sector.

Readers write...
Delisting: who should pay for management inefficiency?

The Colombo Stock Exchange recently announced delisting of 10 out of the 244 companies listed in the Colombo Stock Exchange by 31st July 1997 for failing to file the accounts as required under the CSE' s continuing listing requirements. Why do companies fight shy to distribute accounts to shareholders? For obvious reasons. The funds obtained from the investing public have been mismanaged and the directors concerned are reluctant to face the shareholders.

By taking the errant companies to task the CSE has done their job, right? Wrong. In the 1st instance why did the public including investors from rural areas invest in these companies? Because no one promoting investments in the stock market has ever highlighted in their promotional work that some quoted companies could be managed by dishonest individuals. Have they ever warned the potential investors the risk they take as there are directors in some of these companies who have no time to look into the affairs of the company or they do not have the courage to speak out when they see the affairs of the company are being mismanaged.

Who are the losers when companies are delisted? The investing public. They are unable to realise readily even the few cents they could, if the company had not been delisted. Interestingly one company had not submitted accounts since March 1991. What were the regulatory bodies doing all this time? When the finance companies went bust the Central Bank came to the rescue of the investors. Should the authorities concerned consider creating a fund to compensate investors in quoted companies, when it is proved that the directors of a company have mismanaged affairs of the Company? Such a move will certainly assist in creating a vibrant share market in Sri Lanka. This will attract more investors from the rural areas as they have some assurance that they will not run the risk of losing their savings by being swindled by some influential individuals.

It is unfortunate that directors involved with these 10 delisted companies continue to be directors in other quoted companies. Whilst acknowledging that these individuals have let down the shareholders, how can they be permitted to manage affairs in another company in which the public has invested funds. Are persons of sound mind but incapable of timely preparation of accounts worthy of directorship in quoted companies.

Isn't it high time that regulatory bodies took some action in this regard. The Colombo Stock Exchange should also publish the names of the directors of the 10 companies to be delisted so that the investing public can wisely entrust their savings in future. After all the culprits are not the 10 companies but the directors involved with these companies.

When a quoted company wishes to be delisted why go through all the hassle of complying with official formalities. All what is necessary is to refrain from filing accounts. The company will be automatically de-listed. Once delisted the shares of the minority shareholders can be bought for a song.

Investment Analyst

The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of July 23rd, 1998 were as follows:

The approximate middle exchange rates of following currencies calculated on the basis of cross rates quoted by Gulf International Bank, Bahrain as it appeared in Reuters Financial Information System on July 23rd, 1998 were as follows:

Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers at mid-day on July 23rd, 1998 were as follows:

Average Weighted Prime Lending Rate (AWRP) and Lowest Prime Rate (LPR)
The Average Weighted Prime Lending Rate (AWPR) during the week ended July 17th 1998 was 16.4 per cent for all banks. The Lowest Prime Rate among banks during this week was 12.8 per cent.

Average Weighted Deposit Rate of Commercial Banks (AWDR)
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended June 30th 1998 was 9.6 percent.

* After deducting exit fees applicable for the first year.