Primary dealer Perpetual Treasuries Ltd., which figured in the controversial bond trading that triggered an uproar in financial markets and political circles, has reported a staggering after tax profit of Rs. 5.1 billion, up by over 400% in the financial year ended 31 March 2016.
As per published accounts, the company has reported net interest income of Rs. 354 million against Rs. 106 million in FY15.
However, it has enjoyed capital gains of Rs. 5.2 billion from bond trading during the year, up by 580% from a year earlier. The company, like many primary dealers, enjoys tax-free status, a development which critics are likely to question following reports of Perpetual’s stellar profits.
Perpetual Treasuries had connections to former Central Bank Governor Arjuna Mahendran with its Director being his son-in-law. Last year both the Governor and Perpetual came under fire for conflicts of interest as well as alleged irregularities in a bond issue and subsequent trading of same. The parties concerned have denied any wrongdoing although the parliamentary Committee on Public Enterprise (COPE) has extensively probed the matter and found lapses.
Perpetual’s assets as at 31.03.2016 stood at Rs. 11.84 billion, up from Rs. 7.8 billion a year earlier. Capital and Reserves increased from Rs. 1.06 billion to Rs. 6.1 billion inclusive of Rs. 4.98 billion in retained earnings. Liabilities were down to Rs. 5.68 billion from Rs. 6.8 billion in FY15.