Over Rs. 2.3 bn. retained losses, lease on 92-acre factory land not renewed
Lanka Cement PLC has published its annual report for 2016 to be considered by shareholders at its 23rd Annual General Meeting as well as a second volume comprising annual reports for the years 2010 to 2015 (inclusive) to be considered at what is described as a 23rd Extraordinary General Meeting.
Although the affairs of the company, which has been importing and selling cement since its Kankesanturai factory was closed in 1991, is in a mess and auditors have declined to express an opinion on its accounts, its shares continue to be traded on the Colombo Stock Exchange.
On Thursday over 0.7 million shares of the company were transacted at a low of Rs. 4.10 and a high of Rs. 4.50 closing at Rs. 4.40 in 20 trades.
The company’s present chairman, Mr. Lalinda Liyanage, has said in the latest annual report that Lanka Cement had a great history and the successes and failures of the domestic cement industry could be understood in reviewing this history.
He said their factory was located on 92.8 acres of land granted by a 30-year government lease which ended May 30, 2014. But neither the Lanka Cement board nor its management had acted to renew the lease.
The factory which was under control of the security forces has been looted and valuable steel taken away.
Liyanage expressed the view that the Kankesanturai operation should be revived with high quality limestone deposits, raw material for cement manufacture, belonging to the company exploited to make it a factor in the cement world.
He expressed the hope of putting the company on a firm footing in coming years.
The year ended Dec. 31, 2016, has seen the company which is carrying retained losses of Rs. 2.37 billion in its books, posting a loss of Rs. 5.68 million, down from the previous year’s loss of Rs. 8.05 million and a loss of Rs. 15.53 million a year earlier.
The 2013 loss was Rs. 192.9 million while a loss Rs. 385.2 million was posted in 2012.
The public shareholding of the company which has paid no dividends for several years amounts to 42.9 million shares (24.73%) with the ordinary share capital at Rs. 1.74 billion. Assets were stated in the latest published accounts as Rs. 275.3 million. Debt stood at Rs. 833.2 million and current liabilities at Rs. 76.2 million.
The auditors, Ernst and Young, have said that they have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Although property, plant and equipment valued at Rs. 230 million is described as located in the company’s factory, the factory had been completely destroyed in the war. The recoverable value has not yet been determined by the company.
The directors of the company are Messrs. Lalinda Liyanage (chairman), Reyyaz Salley (MD), Janaka Karunaratne, Abdul Rafeek, Malith Perera, AN Hapugala and NM Munawwar.
Lanka Cement PLC has published its annual report for 2016 to be considered by shareholders at its 23rd Annual General Meeting as well as a second volume comprising annual reports for the years 2010 to 2015 (inclusive) to be considered at what is described as a 23rd Extraordinary General Meeting.
Although the affairs of the company, which has been importing and selling cement since its Kankesanturai factory was closed in 1991, is in a mess and auditors have declined to express an opinion on its accounts, its shares continue to be traded on the Colombo Stock Exchange.
On Thursday over 0.7 million shares of the company were transacted at a low of Rs. 4.10 and a high of Rs. 4.50 closing at Rs. 4.40 in 20 trades.
The company’s present chairman, Mr. Lalinda Liyanage, has said in the latest annual report that Lanka Cement had a great history and the successes and failures of the domestic cement industry could be understood in reviewing this history.
He said their factory was located on 92.8 acres of land granted by a 30-year government lease which ended May 30, 2014. But neither the Lanka Cement board nor its management had acted to renew the lease.
The factory which was under control of the security forces has been looted and valuable steel taken away.
Liyanage expressed the view that the Kankesanturai operation should be revived with high quality limestone deposits, raw material for cement manufacture, belonging to the company exploited to make it a factor in the cement world.
He expressed the hope of putting the company on a firm footing in coming years.
The year ended Dec. 31, 2016, has seen the company which is carrying retained losses of Rs. 2.37 billion in its books, posting a loss of Rs. 5.68 million, down from the previous year’s loss of Rs. 8.05 million and a loss of Rs. 15.53 million a year earlier.
The 2013 loss was Rs. 192.9 million while a loss Rs. 385.2 million was posted in 2012.
The public shareholding of the company which has paid no dividends for several years amounts to 42.9 million shares (24.73%) with the ordinary share capital at Rs. 1.74 billion. Assets were stated in the latest published accounts as Rs. 275.3 million. Debt stood at Rs. 833.2 million and current liabilities at Rs. 76.2 million.
The auditors, Ernst and Young, have said that they have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Although property, plant and equipment valued at Rs. 230 million is described as located in the company’s factory, the factory had been completely destroyed in the war. The recoverable value has not yet been determined by the company.
The directors of the company are Messrs. Lalinda Liyanage (chairman), Reyyaz Salley (MD), Janaka Karunaratne, Abdul Rafeek, Malith Perera, AN Hapugala and NM Munawwar.
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