Audit shows weak capital levels and asset quality of Daya Group’s Bimputh
Micro finance company Bimputh, which has been prohibited from taking deposits and has continued to report financial losses along with a worsening of its capital levels and asset quality, has once again posted heavy losses, stock market filings on December 31, 2024, show.
The chairman, and the chief executive officer have resigned.
The Central Bank of Sri Lanka (CB) cancelled its license in September 2023 for repeat violations of the Finance Business Act, No. 42 of 2011. At the time, CB said the company “managed to repay major portion of its deposit liabilities during 2022’’. CB also had ordered a name change to Bimputh Lanka Investment Plc from May 20, 2024.
The company is a part of Daya Group (Pvt) Ltd., founded by United National Party politician and businessman Daya Gamage, who has interests in apparel, agriculture, imports and exports, and property among others. Daya Construction Company founded in 1978, marked the beginning of a business that then diversified.
Auditor CT Kulatunga Associates’ statement for 2021-2022 shows an operating loss of Rs. 532.39 million, and in 2020-2021 a loss of Rs. 340.92 million. The annual report for 2020-2021 shows an Rs.350 million loss.
In 2020-2021 interest income more than halved from Rs. 1.53 billion to Rs. 720.9 million mainly due to a shrinking loans and advances portfolio, the annual report shows.
The company has prepared its financial statements “as going concern basis’’ on “plans which are yet to materialise,’’ the auditor says. The major shareholder Daya Group (Pvt) Ltd., initially intended to either issue debentures, or dispose a property and infuse the proceeds as a rights issue to meet the capital requirement. But there was no prospective buyer for the property. This remains an option.
In the annual filings for 2020-21 chairman Sudath Jayasundara says the search for a suitable investor was not successful. “We have not given up our efforts to find a suitable investor for Bimputh Finance Plc and will continually engage towards that objective in 2021/22’’.
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