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East-West Properties to improve benefits to shareholders
A major commercial property developer in the country, East West Properties Ltd., held its annual general meeting on Wednesday at which the Chairman Nahil Wijesuriya explained the step the company was taking to improve the benefits that would accrue to shareholders.
In fact there was a four per cent dividend that was being paid for fiscal 1997/98. Mr. Wijesuriya said they were hoping to pay six per cent the next year.
The delay in holding the AGM, he explained, was due to the delays in getting the report prepared.
East West Properties one among a group of ten companies formed in 1981 is listed in the Colombo Stock Exchange and has a paid-up capital of Rs. 172,800,000. Its authorised share capital is one billion.
The East West Group has interest in shipping, transport and information technology. Mr. Wijesuriya told The Island, the shipping concern plies two tankers carrying oil to the North. Meanwhile, they were preparing to expand these services and negotiations are under-way to acquire facilities to commence an offshore bunkering service that would enable ships to fuel up without having to face the hazzles of entering the Port.
Mr. Wijesuriya was emphatic in stressing the company would continue its policy of avoiding the business of arms, livestock and liquor, despite the opportunities 'afforded by the North-East conflict.'
In his review for the year Mr. Wijesuriya says: 'I would like to avoid commenting on terrorism, bombs and their effects on this year's business in general as its effects are well known to all. After coping with terrorism and bombs for over 15 years, bombs and terrorism are now business as usual.'
Meanwhile, the Company has recorded a turnover of Rs. 32.6 million compared with that of the previous year's Rs. 31.4 million.
Other points raised by the Chairman in his review include:
380 perches of land and 25,000 square feet of warehousing space were leased for 30 years to M/s. Larsen Toubro Ceylinco (Pvt) Limited, whose business is the import of bulk cement and bagging the bulk at our Peliyagoda premises. They are at present constructing large cement silos for the storage of the bulk cement. Your company received an advance payment of Rs. 38 million as lease rental in full for the period.
The performance during the year under review has been satisfactory for a company dealing in property. I am pleased to mention that your company paid a tax free dividend of 4% amounting to Rs. 6.9 Million.
POST BALANCE SHEET EVENTS
* In early May 1998 the Company part financed East West Enterprises Limited for the purpose of purchasing an entire floor of Crescat Residencies by granting a loan of Rs. 35.3 million. These apartments were sold 1 1/2 months later; during which period the company earned an interest @ 18%.You company has made a capital gain of Rs. 15.35 million in share transactions involving shares of Aitken Spence Limited and Asian Hotels Ltd.
To meet the demand for additional warehousing and office space on the outskirts of Colombo, your company purchased a 4-acre block of low lying land located behind the Toyota Plaza and the Keells Supermarket at Wattala. This land is being developed.
* Your company has embarked on a programme of upgrading the Peliyagoda property by:
(a) Raising the floors and internal roadways by 4 feet in order to ensure that the warehouses are free from the dangers of flooding.
(b) Raising the roofs of warehouses wherever the heights were found to be inadequate.
(c) Landscaping the road frontage of all the warehouses.
CEO, TA Securities, writes....
Mr. Balwant Singh CEO of TA Securities Lanka (Pvt) Ltd. referring to our Thursday's story regarding the people's Merchant Bank makes the following points:
* The words used in para 4 '...purchase of the troubled TA Securities Lanka (Pvt) Ltd' is not correct as our company is not in any sort of trouble financially or with the Colombo Stock Exchange nor the Securities & Exchange Commission. The company is operating as a viable on-going concern.
* The words used in para 5 'TA Enterprise Bhd dumped its 40 per cent holding' implies that the shareholders has sold their shares is also incorrect as the actual shareholder is TA International Sdn Bhd and they still continue to hold 40% of TA Securities Lanka (Pvt) Ltd.
*The Malaysian shareholders are interested in selling their shares but only if the price is right.
* Your article has led to many clients calling to find out what is wrong with our company and has created a misconception with the investing public and your readers.
He told The Island the negotiation with the people's merchant bank are continuing and are expected to be completed next month.
At this week's tea auction held on 26/27th January Uda Radella Estate situated in Nanu Oya on the borders of Nuwara Eliya in the High Grown western planting district which is an estate owned by Kelani Valley Plantations Limited and managed by DPL Plantation Limited obtained prices of Rs. 212 per kg and Rs. 200 per kg for 2 lines of seasonal quality teas. These were the two highest prices recorded this week for BOP grade from any planting district.
These teas were sold by Eastern Brokers Limited who are the brokers for Uda Radella Estate and purchased by Brooke Bond Ceylon Limited and Tea Tang Limited.
Better Low Grown long leaf teas together with OPAs came in far more support this week. The teas in these categories became the exception as all others recorded price drops. Whilst there was fair general demand for the large weight on offer, buyers showed little inclination to pursue quantity. This was perhaps a reaction to the record quantity on offer next week.
The Ex Estate sale too experienced restrained operations by buyers. Impact on price was, at times startling with most teas declining as much as 10% on their previous week's values. In real terms the bottom of the market dropped to a level not seen in at least two years, and resulted in some withdrawals. It would however, cause the respective elivational averages to be understated; as the lowest value segment of the market saw only a restricted number of contracts.
The change of weather in most planting districts should impact on the major factors, causing the current market weakness - large volume and poor quality. Western districts report bright mornings and exceptionally cold nights. These conditions are ideally suited for the manufacture of seasonal quality teas. The first of these invoices will be offered in the catalogues of 16th/17th February. Production too will decline.
1999 Production Forecast 295Mkg - Our estimates are based on the assumption that weather will remain a neutral factor. The 1998 record was achieved in spite of production from higher elevations declining on 1997. This was caused by adverse weather. Should High and Mid Growns achieve their 1997 level and Low Growns hold steady at the 1998 figure, then a new record will be achieved. - (Asia Siyaka)
+ Exchange Rates The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of January 29, 1999 were as follows:
Buying Selling 100 US Dollars Rs. 67.5329 Rs. 68.8972 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 Financial Information System.
Saudi Arabian Riyal Rs. 18.19 Bahrain Dinar Rs. 180.95 Kuwait Dinar Rs. 226.29 Qatar Riyal Rs. 18.75 UAE Dirham Rs. 18.58 Oman Riyal Rs. 177.19 Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers:
Buying Selling 100 US Dollars Rs. 68.6060 Rs. 69.0140 100 Sterling Pounds Rs. 112.6850 Rs. 113.9747 100 Euro Rs. 77.9765 Rs. 79.0457 100 French Francs Rs. 48.3321 Rs. 49.1800 100 Japanese Yen Rs. 0.5869 Rs. 0.6977 The European Commission Locking Rates of 11 member countries that came into existence from January 1st, 1999 are as follows:
Belgeam Franc 40,339900 Spanish Peseta 166.386000 Irish Punt 0.787564 Luxemberg Franc 40.339900 Austrian Schiling 13.780300 Finish Markka 5.945730 German Mark 1.95583 French Franc 6.55957 Italian Lira 1936.27000 Dutch Guilder 2,20371 Portuguese Becude 200.48200 The maximum and minimum average Weighted Prime Lending Rate (SWPLR) & (LPR) during the week ended January 22th, 1999 by all commercial banbks were 14.3 per cent and 12.5 per cent respectively.
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended December 31st, 1998 was 9.2 per cent.
* Unit Trust Prices
Comtrust Equity Fund
Manager's Selling Price Rs. 5.27 Managers Buying Price Rs. 4.94
Eagle Gilt Edged Fund
Manager's Selling Price Rs. 11.25 Managers Buying Price More than one year Rs. 11.24 Less than one year Rs. 11.13*
Eagle Income Fund
Manager's Selling Price Rs. 11.21 Managers Buying Price More than one year Rs. 11.19 Less than one year Rs. 11.08*
Eagle Growth Fund
Manager's Selling Price Rs. 8.51 Managers Buying Price More than one year Rs. 8.16* Less than one year Rs. 8.08* * After deducting the relevant exit fees applicable
National Equity Fund
Manager's Selling Price Rs. 8.01 (per unit) Managers Buying Price Rs. 7.52 (per unit)
Namal Growth Fund
Manager's Selling Price Rs. 9.30 (per unit) Managers Buying Price Rs. 8.70 (per unit)
Namal Income Fund
Manager's Selling Price Rs. 10.71 (per unit) Managers Buying Price Rs. 10.60* (per unit) Rs. 10.71** (per unit) Note: * After deducting exit fees
** Without deducting exit fees
Ceybank Unit Trust
Manager's Selling Price Rs. 5.90 (per unit) Managers Buying Price Rs. 5.49 (per unit)
Ceybank Century Growth Fund
Manager's Selling Price Rs. 8.37 (per unit) Managers Buying Price Rs. 8.21 (per unit)
Pyramid Unit Trust
Manager's Selling Price Rs. 5.90 (per unit) Managers Buying Price Rs. 5.49 (per unit)
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