Oct 10, 2011 (LBO) – A provision reversal at People’s Leasing Company which is going public next month came due to it following international financial reporting standards (IFRS), which do not permit general provisions, an official said. People’s Leasing is selling 390 million shares at 18 rupees a share. After the IPO the firm will have 1.56 billion shares in issue.
People’s Leasing Company group has reported profits of 1,727 million rupees for the June 2011 quarter up from 290 million rupees a year earlier.
“We made a reversal of one billion in provisioning because under the new IFRS rules you can’t carry general provisioning, which we had built as a buffer,” People’s Leasing Company chief executive D P Kumarage told LBO.
“So even if you remove the one-off effect of the provisioning reversal we have done much better than last year – grown by over 100 percent.”
In the June quarter group revenues rose to 3.4 billion rupees from 2.1 billion rupees a year earlier.
There have been concerns about earlier results of new listings where one-off profits were found just before a listing.
In a disclosure in the prospectus, the firm said it made profits of 1,678 million at stand alone company level.