Beer guzzlers will not be let down
Carson & Cumberbatch says that with its
commissioning of the Lion Brewery it could meet the
entirety of the market demand.
However, the profitability of the beer sector, it is
said, will be affected due to the pricing changes made
necessary by the tax increases spelt out in the recent
Budget.
Carsons, which owns The Ceylon Brewery and the Lion
Brewery expresses its concern over the 50 per cent hike
in the base rate of tax. This is in addition to a 10 per
cent tax on selling price. The review points out that
while revenue generation is necessary it should not 'be
achieved at the expense of inconsistency in policy, which
could affect investor confidence'.
The additional charge in taxes, however, the group
review says has not been passed on to the consumer.
Despite the cost to the companies is being done in
keeping with its commitment to provide people with a
socially acceptable drink at an affordable price.
Meanwhile, the Carsons Group in the six months under
review records a 27 per cent growth in turnover from Rs.
1.08 billion to Rs. 1.37 billion and a 118 per cent
profit growth. The post tax profit has had a growth of
180 per cent as compared to that of the previous year.
The Company says its investments in oil palm, beer and
real estate were the key sectors which, contributed
towards the earnings of the Group.
'Bankrupt' Blue Chip Companies
It is very encouraging to note that Colombo Stock
Exchange will shortly introduce a new ''blue chip' index.
The basic requirements such as market capitalisation, P/E
ratio etc. can easily be determined when selecting
companies for inclusion in such an index. However, there
is no yardstick for measurement of integrity of directors
involved in the management of quoted companies.
Eventually the success of a company depends largely on
the individuals managing it.
It is sad that shares of some of the companies which
were considered ''blue chips'' not in the distant past
are trading at prices below their par value at the
Colombo Bourse. The investors are now much wiser. They
make note of the directors involved with these companies
who have let down the investors.
It is therefore not surprising that some brokers are
advising their clients to dispose of shares in a
particular group, which has several companies listed in
the Colombo Stock Exchange. The enormous costs this group
is incurring in advertising is probably proof that most
companies within the group are badly effected by the
economic down turn. Various offers has enabled them to
attract customers, but one wonders for how long they will
be retained as satisfied customers.
- Investment Analyst
Kurunegala welcomes Dimo Automart
Diesel & Motor Engineering Co Ltd. (Dimo)
introduced a new concept in auto care franchise
operations with Automart; the first 'Automart' opened
recently in the deep South at Matara. The second Automart
is being opened in Kurunegala as a franchise concept with
Nanda Motors Kurunegala. Automart was quite a success
says Mr. Ananda Mapalagama, AGM Marketing &
Distribution Division - Dimo, which encouraged them to
open the Kurunegala Automart within such a short space of
time. Kurunegala will be a central location from which
Dimo customers in the entire region can obtain genuine
Dimo spares. Dimo is already seen in auto circles as
Automart is a unique concept that takes auto care out of
Colombo, to the outstations.
Dimo Automart at Kurunegala will stock original spare
parts for a wider range of vehicles from Bosch Mico Zexel
and Monroe. 'In Matara, Automart was huge success. Towns
around Matara from Ambalangoda to Kataragama were served
by the Matara Automart. The Kurunegala Automart will, we
are certain, bring Dimo closer to our customers located
in and around Kurunegala' says Mr. Mapalagama.
The Automart houses more than auto spares - Osram
energy saving lamps and Bosch power tools will also be
located at Automart. All Osram energy saving lamps in the
Osram delux range offer impressive economy up to 80%
saving in electricity cost, compared to normal
incandecent lamp of the same brightness and 12 to 15
times the life of ordinary incandecent lamp. The Dimo
Automart, will also be a centre for the energy saving
bulbs loan scheme initiated by the Ceylon Electricity
Board.
'Dimo Automart Kurunegala will also continue to
Automart corporate colours and logo format, providing
instant recognition for genuine parts and a franchise
chain - Automart will ensure guarantee of the same
assurance and expert service as available in Colombo says
Mr. Mapalagama. It is time to go to outstations away from
being present in Colombo alone.
Vehicle owners in Kurunegala and around will be happy
to welcome Automart than a drive to Colombo will now not
be necessary. This is the first time a Colombo based
reputed auto company was making its presence felt in an
outstation area, they noted, sending out a signal of the
importance of customer care at Dimo.
Lorries presented to Mitsui Cement
dealers
Tokyo Cement Co. [Lanka] Ltd., manufacturers of Mitsui
cement, the superior brand of cement manufactured locally
with Japanese technology recently handed 12 of their
leading dealers with Lanka Ashok Leyland lorries on a
soft loan basis. This was a 'first' within the cement
manufacturing industry of Sri Lanka.
The lucky recipients of these lorries were those who
had been with the Company for a long period and had
achieved remarkable sales.
Speaking on the occasion, Mr. S. R. Gnanam Jt.
Managing Director said 'These lorries are being handed to
our dealers as a mark of our appreciation for their
contribution towards the success of the company'. Mr.
Gnanam went on to say that an effective dealer network
was a vital component in the successful operations of a
Company and hence they were very appreciative of the role
their Dealers had played in the success and development
of the Company.
The lorries which are being given on very
concessionary terms, a 36 month instalment payment basis
is a 'First' to take place in the local cement industry,
with the Company having invested over Rs. 15 million on
this exercise .
Mr. David of Neela Hardware, Negombo, spoke on behalf
of the Dealers and expressed his appreciation of the
gesture made by the Company in making available these
lorries to them. 'We will now be able to deliver cement
to our customers regularly without them experiencing any
delays due to the fact that we are no longer dependent on
others for our transport' he said.
Mr. Abe - Jt. MD and Mr. Yanagihara - Senior Technical
Consultant of Tokyo & Fuji Cement companies was also
present to hand over the lorries at a colourful ceremony
which took place at the Pegasus Reef Hotel.
The Central Bank's Spot Rates for
transactions with Commercial Banks announced on the
morning of December 04 1998 were as follows:
| |
Buying |
Selling |
| 100 US Dollars |
Rs.
6664.38 |
Rs.
6799.02 |
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
December 04, 1998 were as follows:
| Saudi Arabia Riyal |
Rs.
17.95 |
| Bahrain Dinar |
Rs.
178.57 |
| Kuwait Dinar |
Rs.
221.84 |
| Qatar Riyal |
Rs.
18.50 |
| UAE Dirham |
Rs.
18.33 |
| Oman Riyal |
Rs.
174.86 |
Average rates at which the following
currencies were quoted by Commercial Banks in Colombo for
Telegraphic Transfers at mid-day on December 04, 1998
were as follows:
| |
Buying |
Selling |
| 100 US Dollars |
Rs.
6763.00 |
Rs.
6802.60 |
| 100 Sterling
Pounds |
Rs.
11253..86 |
Rs.
11378.90 |
| 100 Deutsche Marks |
Rs.
4036.77 |
Rs.
4098.75 |
| 100 French Francs |
Rs.
1201.97 |
Rs.
1223.24 |
| 100 Japanese Yen |
Rs.
56.92 |
Rs.
57.89 |
Average Weighted Prime Lending
Rate (AWRP) and Lowest Prime Rate (LPR) of Commercial
Banks
The Average Weighted Prime Lending Rate (AWPR)
during the week ended November 27th 1998 was 15.4 per
cent for all banks. The Lowest Prime Rate among banks
during this week was 13.0per cent.
Average Weighted Deposit Rate
(AWDR) of Commercial Banks
The Average Weighted Deposit Rate (AWDR) of
Commercial Banks for the month ended October 31, 1998 was
9.2 percent.
