INTERIM FINANCIAL STATEMENTS

Transcription

1 INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2014 LB Finance PLC, 275/75, Prof. Stanley Wijesundara Mw., Colombo 07. Tel:

2 LB Finance PLC STATEMENT OF COMPREHENSIVE INCOME FOR THE 3 MONTHS ENDED VARIANCE FOR THE YEAR ENDED VARIANCE Audited Audited % % Rs.('000) Rs.('000) Rs.('000) Rs.('000) Income 3,475,912 3,190, ,628,497 11,368, Interest Income 3,199,959 2,945, ,714,089 10,526, Interest Expenses (1,750,451) (1,639,016) (7) (7,137,897) (5,945,707) (20) Net Interest Income 1,449,508 1,306, ,576,192 4,581, Fee and Commission Income 246, , , ,610 7 Net Fee and Commission Income 246, , , ,610 7 Net Trading Income 1, , (60) Other Operating Income 28,373 8, , , ,396 8, , , Total Operating Income 1,725,461 1,551, ,490,600 5,422, Impairment (Charges) / Reversal for loans and other losses (115,590) (97,704) (18) (570,332) (400,307) (42) Gold Loan Auction Losses (239,320) (188,317) (27) (1,371,959) (201,802) (580) Net Operating Income 1,370,552 1,265, ,548,309 4,820,436 (6) Operating Expenses Personnel Expenses (257,435) (260,707) 1 (1,236,962) (1,026,041) (21) Depreciation of Property, Plant and Equipment (59,920) 32, (304,616) (197,828) (54) Amortisation of Intangible Assets (2,715) (2,200) (23) (9,076) (6,256) (45) Other Operating Expenses (265,033) (205,530) (29) (1,016,646) (887,503) (15) Operating Profit before Value Added Tax on Financial Services 785, ,781 (5) 1,981,009 2,702,808 (27) Value Added Tax on Financial Services (46,490) (53,334) 13 (112,618) (176,249) 36 Profit before Taxation 738, ,447 (5) 1,868,391 2,526,560 (26) Income Tax Expense (195,840) (219,589) 11 (528,361) (824,443) 36 Profit after Taxation 543, ,858 (2) 1,340,029 1,702,116 (21) Other Comprehensive Income / (Expenses) Gains & Losses arising on re-measuring Available for Sale Financial Assets Sri Lanka Government securities (16,226) (1,476) ,890 3, Equity Securities 7,845 (4,625) (270) 584 (22,651) (103) Reclassification Adjustments for gain 6,887 24,611 (72) 6,887 24,611 (72) (1,494) 18,511 (108) 42,361 5, Actuarial gains & losses on defined benefit plans (19,809) - (100) (19,809) - (100) Other comprehensive income / (expenses) before taxation (21,303) 18,511 (215) 22,552 5, Income Tax (Charge) / Reversal Relating to Components of Other Comprehensive Income 8,057 (1,055) (864) (4,223) (1,055) 300 Other Comprehensive Income for the Year, Net of Tax (13,246) 17,456 (176) 18,329 4, Total Comprehensive Income for the Year, Net of Tax 529, ,314 (8) 1,358,358 1,706,790 (20) Basic Earnings Per Share (Rs) LB Finance PLC STATEMENT OF CHANGES IN EQUITY Stated Capital Retained Earnings Statutory Reserve Investment Fund Reserve Available for Sale Reserve Rs.('000) Rs.('000) Rs.('000) Rs.('000) Rs.('000) Rs.('000) Balance as at 1 April ,282 2,076, , ,795 (609) 3,968,097 Net profit for the year - 1,702, ,702,116 Other comprehensive income net of tax ,673 4,673 Transfer to Statutory Reserve - (340,533) 340, Transfer to Investment Fund Reserve - (239,006) - 239, Final Dividend for 2011/12 - (346,286) (346,286) Balance as at 31 March ,282 2,852,402 1,193, ,801 4,065 5,328,601 Adjusted Balance as at 1 April 2013 (Pls Refer Note 04) 838,282 2,822,303 1,193, ,801 4,065 5,298,502 Net profit for the year - 1,340, ,340,029 Other comprehensive income net of tax ,329 18,329 Transfer to Statutory Reserve - (268,006) 268, Transfer to Investment Fund Reserve - (178,881) - 178, Final Dividend for 2012/13 - (450,171) (450,171) Balances as at 31 March ,282 3,265,274 1,461, ,682 22,393 6,206,689 Total

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4 LB Finance PLC CASH FLOW STATEMENT Year ended 31 March 2014 Cash Flows From / (Used in) Operating Activities Audited Audited Rs.('000) Rs.('000) Profit before Income Tax Expense 1,890,942 2,532,288 Adjustments for Depreciation of Property, Plant and Equipment 304, ,828 Amortisation of Intangible Assets 9,076 6,256 Impairment Provision 570, ,307 Interest Cost on Finance Lease 3,006 4,355 Diminution/(Appreciation) in Value of Investments (35,746) 18,300 Loss/(Profit) on Disposal of Property, Plant and Equipment (4,721) (8,454) Provision/(reversal) for Defined Benefit Plans 39,906 18,324 Dividend Received (2,407) (2,459) Interest Income on Investing Activities (701,695) (485,033) Notional Tax Credit on Interest on Treasury Bills (40,513) (29,535) Withholding Tax Attributed to Fixed Deposits (36,987) (77,489) Operating Profit before Working Capital Changes 1,995,808 2,574,687 (Increase)/Decrease in Loans and Advances (2,543,846) (3,681,482) (Increase)/Decrease in Lease Rentals Receivable & Stock out on Hire (2,490,625) (4,985,659) (Increase)/Decrease in Other Financial Assets (3,520,767) (467,566) (Increase)/Decrease in Other Non Financial Assets 297,982 (190,224) Increase/(Decrease) in Amounts Due to Customers 7,352,505 11,573,775 Increase/(Decrease) in Other Financial Liabilities (51,664) 638,011 Increase/(Decrease) in Other Non Financial Liabilities 134,743 73,512 Cash Generated from Operations 1,174,137 5,535,053 Retirement Benefit Liabilities Paid (6,937) (2,324) Taxes Paid (508,644) (950,066) Net Cash From/(Used in) Operating Activities 658,556 4,582,662 Cash Flows from / (Used in) Investing Activities Acquisition of Property and Equipment (312,188) (432,863) Acquisition of Intangible Assets (21,832) (10,585) Proceeds from Sales of Property, Plant and Equipment 15,205 10,836 Sale/(Purchase) of financial investments- available- for- sale (939,911) (368,323) Interest Received 607, ,033 Dividend Received 2,407 2,459 Net Cash Flows from/(used in) Investing Activities (649,072) (313,443) Cash Flows from / (Used in) Financing Activities Payment under Finance Lease Liabilities (11,924) (12,008) Net Cash Flow from Securitised Borrowings, Syndicated Loans and Other Bank Facilities (2,065,336) (1,926,336) Net Cash Flow from Debt Issued and Other borrowings 620, ,541 Dividends Paid (450,171) (346,286) Net Cash Flows from/(used in) Financing Activities (1,906,770) (1,598,089) Net Increase in Cash and Cash Equivalents (1,897,286) 2,671,130 Cash and Cash Equivalents at the beginning of the year 3,141, ,051 Cash and Cash Equivalents at the end of the year 1,243,894 3,141,180 CASH AND CASH EQUIVALENTS IN THE CASH FLOW STATEMENT Notes and Coins Held 304, ,905 Balances with Banks 521, ,732 Treasury Bills Repurchase Agreements 1,039,408 2,848,036 Bank Overdrafts (621,206) (878,493) Net Cash and Cash Equivalents 1,243,894 3,141,180

5 LB Finance PLC SEGMENTAL INFORMATION For management purposes, the Company is organised into three operating segments based on services offered to customers as follows. The following table presents income and profit and certain asset and liability information regarding the Company s operating segments. Leasing & Stock out on Hire Loans & Receivables Others Total Rs.('000) Rs.('000) Rs.('000) Rs.('000) Rs.('000) Rs.('000) Rs.('000) Rs.('000) Interest Income 7,863,444 6,536,360 3,898,949 3,503, , ,251 12,714,089 10,526,829 Interest Expenses (4,265,368) (3,811,289) (2,235,150) (1,783,240) (637,380) (351,177) (7,137,897) (5,945,707) Net Interest Income/(Expenses) 3,598,077 2,725,071 1,663,799 1,719, , ,074 5,576,192 4,581,122 Fee and Commission Income 351, , , , , , , ,610 Net Trading Income and Other Operating Income 124, ,014 11, (1,201) 136, ,813 Impairment Charge/Reversal on Loans and Losses (462,516) (243,449) (103,595) (161,938) (4,221) 5,080 (570,332) (400,307) Gold Loan Auction Losses - - (1,371,959) (201,802) - - (1,371,959) (201,802) Net Operating Income 3,611,743 2,853, ,119 1,666, , ,741 4,548,309 4,820,436 Other Costs 1,168,711 1,040, , , , ,373 2,253,609 1,913,544 Depreciation 162, , ,854 64,075 48,159 29, , ,084 Operating Profits Before Taxes 2,280,353 1,702,101 (430,652) 1,001, ,307 (681) 1,981,009 2,702,808 Taxes (640,979) (1,000,692) Profits for the Year 1,340,029 1,702,116 Segmental Assets 31,538,054 29,480,793 19,939,927 17,024,009 9,336,401 7,718,057 60,814,381 54,222,859 Segmental Liabilities 28,248,885 26,731,095 17,478,849 15,443,341 8,879,958 6,719,822 54,607,692 48,894,257 Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profits or losses which, in certain respects, are measured differently from operating profits or losses in the financial statements. Income taxes are managed on a group basis and are not allocated to operating segments. No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Company s total revenue in 2013 or 2014.

6 EXPLANATORY NOTES 1. These Interim Financial Statement of the Company have been prepared in accordance with Sri Lanka Accounting Standards that came into effect from April 1, 2012 and comparatives (year 2012) too are reclassified and re-measured wherever necessary to conform to the current presentation. Further, these Interim Financial Statements have been prepared in compliance with the requirements of Sri Lanka Accounting Standards - LKAS 34 on 'Interim Financial Reporting' & the accounting policies and methods of computation followed in preparing the above interim financial statements are the same as those disclosed in our Annual Report for the year ended 31st March There have been no material events occurring after the balance sheet date that require adjustments to or disclosure in the Financial Statements except that on 20th May 2014, the Board of Directors has recommended the payment of a first and final dividend of Rs.6.50 per share totalling to Rs.450 Million subject to the relevant regulatory approval. 3. The Commitment & Contingencies as at 31st March 2014 was Rs.638 Mn & as at 31st March 2013 was Rs.1,223Mn. 4. Retained Earnings 31 March 2013, as reported previously (Rs '000) 2,852,402 Correction of under depreciation for the prior period (Rs '000) (30,099) Adjusted Balance of Retained Earnings as at 01 April 2013 (Rs '000) 2,822,303 For the Period Ended Information on Shares Share Price During the Quarter Highest Rs Lowest Rs Closing Rs No of Ordinary Share Issued As At 69,257,142 69,257,142 Information on Listed Debentures Debt Equity Ratio % % Quick Asset Ratio 17.41% 13.62% Interest Cover Interest yield Debentures Issued - November year fixed rate (14.00 % p.a. Payable Monthly ) Not Traded N/A 5 year fixed rate (14.50 % p.a. Payable Semi-Annually ) 14.20% N/A 5 year fixed rate (15.00 % p.a. Payable Annually ) 11.50% N/A Yield of Comparable Government Securities (%) 05 Year treasury bond 10.73% 11.45% Capital Adequacy As At As At Core Capital to Risk Weighted Asset Ratio (Minimum 5%) 12.34% 14.02% Total Capital to Risk Weighted Asset Ratio (Minimum 10%) 17.50% 15.40% Capital Funds to Total Deposit Liabilities Ratio (Minimum 10%) 13.46% 13.75% Profitability Return on Avg Shareholders' Funds (After Tax) - Annualized 23.55% 36.72% Return on Avg Assets (After Tax) - Annualized 2.36% 3.52% Asset Quality (Rs.'Mn) Non-Performing Accommodation 3,033 1,668 Total Accommodations 58,825 55,084 Net Total Accommodations (Net of Allowance for Impairment Losses) 57,118 54,317 Liquidity (Rs.'Mn) INFORMATION ON SHARES AND LISTED DEBENTURES SELECTED PERFORMANCE INDICATORS Required Minimum Amount of Liquid Assets 4,663 3,757 Available Amount of Liquid Assets 7,054 5,403 Required Minimum Amount of Government Securities 2,631 1,723 Available Amount of Government Securities 3,638 2,833

7 L B Finance PLC Interim Financial Statements for the year ended 31st March 2014 Additional Notes Twenty largest shareholders as at 31st March 2014 Name No. of Shares (%) 1 Vallibel One PLC 35,321, Royal Ceramics Lanka PLC 18,061, Commercial Bank of Ceylon PLC/ 3 Esna Holdings (Pvt) Ltd 7,014, Sri Lanka Insurance Corporation Ltd - Life Fund 1,842, Mercantile Investments and Finance PLC 953, Seylan Bank PLC/Mr. W D N H Perera/Mr. Nimal Perera 435, Don Wilbert Capital Ltd 279, HSBC International Nominees Ltd-SSBT- Deustche Bank 232, Mr.K D A Perera 172, Mr. A A Page 157, Mr. E Bianchi 154, Mr. A M Weerasinghe 148, Waldock Mackenzie Ltd / Mrs G Soysa 111, Environmental Resources Investment PLC 110, Mrs. P C Cooray 95, Mr T Jeremiah 77, Mr K Karunanayake & Ms P N Karunanayake 74, Mr P Somadasa 72, Mr. J A S S Adhihetty 53, Waldock Mackenzie Ltd / Mr K R E M D M B Jayasundara 52, ,422, Others 3,834, Total 69,257, Directors' and Chief Executive Officer's holding in shares as at 31st March 2014 Name No. of Shares (%) Mr. Thosapala Hewage - - Mr. K D D Perera - - Mr. L N De Silva Wijeyeratne - - Mr. J A S S Adhihetty (Managing Director) 53, Mr. Nimal Perera/ Seylan Bank PLC Mr. Nimal Perera Mr. N Udage 435,135 11, Mr. B D A Perera - - Mrs. K Fernando 1, Mrs. Shirani Jayasekara - - Mrs. A K Gunawardhana - - PUBLIC HOLDING The percentage of shares held by the public as at 31st March 2014 is 21.45%