COMMERCIAL LEASING & FINANCE PLC INTERIM FINANCIALS FOR THE THREE MONTHS ENDED 30 JUNE 2014

Transcription

1 INTERIM FINANCIALS FOR THE THREE MONTHS ENDED 30 JUNE 2014

2 Statement of Comprehensive Income For the Three months ended Variance % Rs. ' 000 Rs. ' 000 Interest income 1,825,897 1,745,967 5% Interest expense (636,069) (668,517) (5%) Net interest income 1,189,828 1,077,450 10% Other operating income 135,245 46, % Expenses Personnel costs (159,919) (122,875) 30% Premises, equipment & establishment expenses (63,116) (50,466) 25% Depreciation on property plant & equipment (20,459) (15,956) 28% Provision for bad & doubtful debts (360,362) (193,872) 86% Other operating expenses (308,001) (297,388) 4% VAT on financial services (33,671) (39,222) (14%) Profit from operations 379, ,311 (6%) Share of profit of equity accounted investee (net of tax) 1,744 3,195 (45%) Profit before tax 381, ,506 (6%) Income tax expense (106,273) (112,995) (6%) Profit for the year 275, ,511 (7%) Other comprehensive income Net Change in fair value of available for sale finance assets 7,659 2, % Effective portion of changes in fair value of cash flow (29,563) (44,502) (34%) Other comprehensive income/ (expense) for the period, net of tax (21,904) (41,771) (48%) the period 253, ,740 Earnings per share Rs Figures in brackets indicate deductions 1. The Statement of Financial Position as at 30 June 2014, the Statement of Comprehensive Income, Cash Flow Statements and Statements of Changes in Equity of the Company for the three months ended 30 June 2014 are drawn up from unaudited Financial Statements of the Company, and provide information as required by the Colombo Stock Exchange and in accordance with LKAS 34 Interim Financial Reporting and do not include all of the information required for a full set of financial statements. Further, provisions of the Companies Act No.7 of 2007 and Finance Business Act No.42 of 2011,has been considered in preparing the said financial statements of the Company. 2. Accounting policies and methods of computation as stated in the Audited financial statements for the year 2013/14 are followed in the preparation of these Interim Financial Statements 3. The Stated Capital of the Company is represented by 6,377,311,170 ordinary shares. 3. Income represents the gross income receivable for the year on all performing contracts, rentals on operating leases and income on factoring client debtors.it includes all income related to operations such as interest on overdue rentals,profit/loss on contracts terminated and collection on contracts written-off. 4. Other operating income includes foreign exchange gains, commision income, capital gains and losses arising from marked to market valuation of quoted shares held for trading purposes,and dividends. 5. All expenses related to management expenditure is fully provided for in the Financial Statements. 6. Previous period figures and notes have been restated and reclassified wherever necessary to conform to the current year s presentation. 7.There are no material events occurring after Balance Sheet date that require adjustment to or disclosure in these Interim Financial Statements. 8. There are no significant changes in the nature of the contingent liabilities disclosed in the Audited financials for the year ended 31 March 2014.

3 Statement of Financial Position 31-Mar-14 As at 30th June, (Audited) Rs. Rs. '000 Rs. '000 Assets 736,358 Cash & cash equivalents 475, , ,076 Financial assets held for trading 219,245 5,941 2,545,320 Other investments 2,752,736 1,003,650 12,707,423 Rentals receivable on lease & hire purchase 12,109,261 14,452,393 13,059,739 Loans and advances 14,190,737 8,804,505 1,803,034 Factoring receivable 1,754,690 2,274, ,890 Value Added Tax (VAT) recoverable 382, , ,691 Other receivables 356, ,001 71,531 Investment in equity accounted investee 73,275 67,588 14,038 Investment properties 14,038-1,069,814 Property, plant & equipment 1,072, ,703 32,933,914 Total Assets 33,400,106 28,416,689 Liabilities and Equity 655,802 Bank overdraft 962,354 1,102,646 97,552 Derivative liabilities 136,367 37,890 7,678,278 Deposits from customers 8,940,715 2,594,610 13,437,135 Interest bearing loans & borrowings 12,694,974 14,729, ,848 Current tax liabilities 150, , ,213 Amounts due to related companies 85, , ,615 Other payables 669, , ,924 Deferred tax liabilities 609, ,071 40,338 Retirement benefit obligations 41,218 24,942 24,077,705 Total Liabilities 24,290,786 20,326,808 Equity 1,425,947 Stated capital 1,425,947 1,425,947 1,134,339 Reserves 1,121, ,789 6,295,923 Retained earnings 6,562,009 5,779,145 8,856,209 Total Equity 9,109,320 8,089,881 32,933,914 Total Liabilities and Equity 33,400,106 28,416, Net asset value per share The Board of Directors is responsible for the preparation and presentation of these financial statements.the Chief Financial Officer- LOLC Group certifies that the financial statements have been prepared in compliance with the requirements of the Companies Act no. 07 of I.C Nanayakkara D.M.D.K.Thilakarathne Chairman Director / CEO (Mrs) S.S Kotakadeniya CFO - LOLC Group 13th August 2014 Colombo

4 Statement of changes in equity For the three months ended 30 June 2014 Attributable to Equity Holders of the Company Stated Capital Revaluation Hedging Fair Value General Statutory Invetsment Retained Reserves reserve Reserve on AFS Reserve Reserves Fund Reserve Earnings Total Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Balance as at 01st April ,425,947 56,873 12,415 (23) 288, , ,690 5,514,353 7,837,139 the period Profit for the period , ,511 Other comprehensive income - - (44,501) 2, (41,771) the period - - (44,501) 2, , ,740 Transferred to/(from) during the year ,719 (29,719) - Balance as at 30th Jun ,425,947 56,873 (32,086) 2, , , ,409 5,779,145 8,089,879 the period Profit for the period , ,446 Other comprehensive income 98,788 29,352 26, (10,206) 144,562 the period - 98,788 29,352 26, , ,008 Deferred tax on revaluation - (19,681) (19,679) Transferred to/(from) during the year ,798 67,666 (114,464) - Balance as at 31st March ,425, ,980 (2,734) 29, , , ,075 6,295,922 8,856,208 the period Profit for the period 275, ,016 Other comprehensive income (29,563) 7,659 - (21,904) the period - - (29,563) 7, , ,112 Transferred to/(from) during the year 8,929 (8,929) - Balance as at 30th Jun ,425, ,980 (32,297) 36, , , ,004 6,562,009 9,109,320 Market prices of shares recorded during the quarter ende 30-Jun Jun-13 Highest price (Rs.) Lowest price (Rs.) Last traded price (Rs.)

5 Statement of Cash Flows For the three months ended 30 June, 2, Rs. '000 Rs. '000 CASH FLOW FROM OPERATING ACTIVITIES Profit before income tax expense 381, ,506 Adjustment for: Depreciation and amortization 20,459 15,956 Provision for gratuity 1,200 1,311 Allowances for doubtful debts 360, ,872 Provision for fall/(increase) in value of investments (3,994) (668) Investment income (54,345) (9,162) Interest income (29,858) - Interest cost 636, ,517 Share of profit of equity accounted investees (1,744) (3,195) Operating profit before working capital changes 1,309,438 1,274,136 Working capital changes (Increase)/decrease in accounts receivables & others 54,648 (11,436) Increase/(decrease) in accounts payables (81,184) (837,401) (Increase)/decrease investment in leases 367, ,515 (Increase)/decrease in factoring account receivable 4, ,932 (Increase)/decrease investment in advances and other loans (1,216,959) (1,021,653) Net proceed from customer deposits 1,262, ,338 Cash generated from operations 1,700,485 (191,569) Interest paid (626,083) (795,071) Income tax paid (281,844) (55,000) Gratuity paid (320) (1,147) Net cash from /(used in) operating activities 792,238 (1,042,787) CASH FLOW FROM INVESTING ACTIVITIES Purchased of property, plant and equipment (22,824) (16,108) Purchases of short term investments (200,457) (496,394) Interest received 67,366 4,388 Dividend received 1, Net cash flow from investing activities (153,943) (507,989) CASH FLOW FROM FINANCING ACTIVITIES Net proceed from short term borrowings (100,000) 1,119,660 Proceeds from long term loans - 1,686,146 Repayments of long term loans (1,105,686) (1,381,186) Net cash generated from financing activities (1,205,686) 1,424,620 Net increase/(decrease) in cash & cash equivalents during the yea (567,391) (126,156) Cash & cash equivalents at the beginning of the year 80,529 (106,596) Cash & cash equivalents at the end of the year (486,862) (232,752) Analysis of cash & cash equivalents at the end of the year Cash at bank and in hand 475, ,894 Bank overdraft (962,354) (1,102,646) (486,862) (232,752)

6 Segment Information For the 3 months ended 30th June Business Segment Leasing Hire Purchase Loans Factoring Others Total Rs.' 000 Rs.' 000 Rs.' 000 Rs.' 000 Rs.' 000 Rs.' 000 For the three months ended 30 June 2014 Total revenue 813,546 63, , , ,874 1,961,142 Net interest cost (279,939) (7,030) (319,874) (29,226) (636,069) Profit before operating expenses 533,607 56, , , ,874 1,325,073 Operating expenses (438,530) (39,475) (298,021) (89,270) (46,561) (911,857) Value Added Tax on financial services - (701) (32,970) (33,671) Profit from operations 95,077 16, ,646 18,940 65, ,545 For the three months ended 30 June 2013 Total revenue 805, , , ,253 21,189 1,792,607 Net interest cost (324,482) (57,908) (227,378) (58,749) (668,517) Profit before operating expenses 481, , , ,504 21,189 1,124,090 Operating expenses (345,976) (95,496) (164,561) (65,350) (9,174) (680,557) Value Added Tax on financial services - (7,801) (31,421) (39,222) Profit from operations 135,482 67, ,732 60,154 12, ,311 For the three months ended 30 June 2014 Capital expenditure Depreciation of property plant and equipment Provision for/(reversal of provision for)doubtful debts and bad debts written off 216,443 15,858 83,829 44, ,362 For the three months ended 30 June 2013 Capital expenditure - Depreciation of property plant and equipment Provision for/(reversal of provision for)doubtful debts and bad debts written off 137,525 21,362 23,973 11, ,872 As at 30- June Total assets 11,920, ,347 14,078,323 1,286,263 5,815,875 33,400,106 Total liabilities 10,277, ,102 11,744,049 1,072, ,785 24,290,786 As at 30- June Total assets 12,244,821 2,185,248 8,801,805 2,274,146 2,910,669 28,416,689 Total liabilities 9,455,104 1,687,387 6,591,585 1,703, ,646 20,326,808

7 Statement of Director s holding and Chief Executive Officer s holding in shares of the Entity As at 30th June 2014 Directors Name No. of shares % 1 Mr. I. C. Nanayakkara - - Chairman 2 Mr. W. D. K. Jayawardena Mrs. K. U. Amarasinghe Mr. L. J. S.H. Cabral Mr. P.D.J.Fernando Mr. D.M.D.K.Thilakarathne - - Director / CEO Top 20 Shareholders As At 30th June 2014 Shareholder No. of % of Issued Shares Capital 1 LANKA ORIX LEASING COMPANY PLC 6,308,876, BROWNS INVESTMENTS PLC 40,000, CHEMICAL INDUSTRIES (COLOMBO) LTD/CIC CHARITABLE & EDUCATIONA 4,000, SINHARAJA HILLS PLANTATION PVT LIMITED 3,226, CEYLON BISCUITS LIMITED 2,000, SEYLAN DEVELOPMENTS PLC 2,000, MR. D.N.N. LOKUGE 1,300, MISS N.R. MATHER 1,000, MRS. R.L. MATHER 1,000, MR. S.R. MATHER 1,000, MR. A.N. WILLIAM 600, MR. W.V.A.N. FERNANDO & MRS.K.M.M.V.R.JAYASURIYA 500, MR. C.P.A. GUNASEKERA 500, DR. H.S.D.SOYSA 400, MRS R A D R P KUMARI 280, MR. P.B.JAYASUNDARA 260, K S GANESHAN 206, MR. S.M.M.ABDUL GHAFFOOR 200, MR H.E.P.BABAPULLE 200, MR N.B.R.T.BALALLE 200, Total shares held by Top 20 Shareholders 6,367,750, The Public Shareholding as at 30th June 2014 was 1.08%