COMMERCIAL LEASING & FINANCE PLC INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 30 JUNE 2015

Transcription

1 INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 30 JUNE 2015

2 Statement of Financial Position Group Company Group Company 31-Mar Mar-15 As at 30th June (Audited) (Audited) Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Assets 639, ,680 Cash & cash equivalents 1,030, , , , ,345 Financial assets held for trading 276, , ,245 5,893,126 5,874,610 Other investments 5,796,413 5,796,413 2,752,736 12,815,032 12,718,721 Rentals receivable on lease & hire purchase 13,617,598 13,571,047 12,109,261 20,800,941 17,849,803 Loans and advances 23,732,736 19,147,628 14,190,737 2,413,883 2,413,883 Factoring receivables 2,586,458 2,606,878 1,754,690 1,406 3,302 Amounts due from related company 110 3, , ,620 Value Added Tax (VAT) recoverable 323, , , , , Other receivables 519, , ,369 71,457 71,457 Investment in equity accounted investee 73,142 73,142 73,275 10,700 10,700 Investment properties 10,700 10,700 14, ,863 Investment in subsidiary companies - 967, Deferred tax assets ,211 - Goodwill on acquisition 253, ,068,739 1,040,374 Property, plant & equipment 1,102,018 1,052,483 1,072,178 45,429,078 42,385,342 Total Assets 49,323,106 45,073,448 33,400,107 Liabilities and Equity Liabilities 1,326,488 1,310,845 Bank overdraft 1,472,370 1,472, , , ,492 Derivative liabilities - fair value through profit or loss 21,825 21, ,367 9,795,029 9,701,570 Deposits liabilities 10,961,432 10,876,886 8,940,715 19,595,870 18,398,143 Interest bearing loans & borrowings 20,225,941 19,025,941 12,694, , ,235 Current tax liabilities 491, , ,277 1,753, ,278 Amounts due to related companies 3,138, ,393 85,865 1,579,625 1,302,811 Other payables 1,749,324 1,347, , , ,356 Deferred tax liabilities 469, , ,924 54,496 48,226 Retirement benefit obligations 57,051 49,426 41,218 35,262,550 32,269,956 Total Liabilities 38,586,924 34,442,283 24,290,787 Equity 1,425,947 1,425,947 Stated capital 1,425,947 1,425,947 1,425, , ,303 Reserves 868, ,208 1,121,364 7,990,108 7,939,136 Retained earnings 8,395,815 8,294,010 6,562,009 10,123,276 10,115,386 Equity attributable to shareholders of the Company 10,689,887 10,631,165 9,109,320 43,252 - Non-controlling interests 46, ,166,528-10,736, ,429,078 42,385,342 Total Liabilities and Equity 49,323,106 45,073,448 33,400, Net asset value per share I certify that these Financial Statements have been prepared and presented in compliance with the requirements of the Companies Act, No.07 of (sgd.) Mrs. S.S. Kotakadeniya Chief Financial Officer - LOLC Group The Board of Directors is responsible for the preparation and the presentation of these Financial Statements. Approved and signed for and on behalf of the Board; (sgd.) Mr. I.C Nanayakkara (sgd.) Mr. W.D.K.Jayawardena Chairman Director 11th August 2015 Colombo

3 Statement of Profit or Loss and Other Comprehansive Income Group Company For the three months ended Variance Unaudited Unaudited Unaudited % Rs. ' 000 Rs. ' 000 Rs. ' 000 Interest income 2,219,358 1,955,696 1,825,897 7% Interest expense (702,279) (637,828) (636,069) - Net interest income 1,517,079 1,317,868 1,189,828 11% Other operating income 152, , ,245 10% Expenses Personnel costs (292,228) (212,071) (159,919) 33% Premises, equipment & establishment expenses (81,622) (73,608) (63,116) 17% Depreciation on property plant & equipment (22,166) (19,840) (20,459) (3%) Net impairment loss on financial assets (245,845) (239,467) (360,362) (34%) Other operating expenses (407,858) (386,779) (308,001) 26% VAT on financial services (59,648) (44,646) (33,671) 33% Profit from operations 559, , ,545 29% Share of profit of equity accounted investee (net of tax) 1,685 1,685 1,744 (3%) Profit before tax 561, , ,289 29% Income tax expense (152,851) (137,351) (106,273) 29% Profit for the period 408, , ,016 29% Other comprehensive income Net Change in fair value of available for sale finance assets 6,825 6,825 7,659 (11%) Effective portion of changes in fair value of cash flow 154, ,079 (29,563) - Other comprehensive income/ (expense) for the period, net of tax 160, ,904 (21,904) - Total comprehensive income for the period 569, , , % Profit attributable to; Equity holders of the Company 405, , ,016 Non-controlling interests 3, Profit for the period 408, , ,016 Tota comprehensive income attributable to; Equity holders of the Company 566, , ,112 Non-controlling interests 3, Total comprehensive income for the period 569, , ,112 Earnings per share Rs Figures in brackets indicate deductions

4 Statement of changes in equity - Company For the three months ended 30 June 2015 Revaluation Hedging Fair Value Statutory Invetsment Fund Stated Capital General Reserve Retained Earnings Total Reserves reserve Reserve on AFS Reserves Reserve Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Balance as at 01st April ,425, ,980 (2,734) 29, , , ,075 6,295,922 8,856,208 Total comprehensive income for the period Profit for the period , ,016 Other comprehensive income - - (29,563) 7, (21,904) Total comprehensive income for the period - - (29,563) 7, , ,112 Transferred to/(from) during the period ,929 (8,929) - Balance as at 30th June ,425, ,980 (32,297) 36, , , ,004 6,562,009 9,109,320 Total comprehensive income for the period Profit for the period ,151,006 1,151,006 Other comprehensive income - (147,773) 3, (583) (144,940) Total comprehensive income for the period - - (147,773) 3, ,150,423 1,006,066 Deferred tax on revaluation Transferred to/(from) during the period ,302 (298,004) 226,702 - Balance as at 31st March ,425, ,980 (180,070) 40, , ,905-7,939,135 10,115,386 Total comprehensive income for the period Profit for the period , ,875 Other comprehensive income ,079 6, ,904 Total comprehensive income for the period ,079 6, , ,779 Transferred to/(from) during the period Balance as at 30th Jun ,425, ,980 (25,992) 47, , ,905-8,294,010 10,631,165 Market prices of ordinary shares recorded during the quarter ended 30-Jun Jun-14 Highest price (Rs.) Lowest price (Rs.) Closing price (Rs.)

5 Commercial Leasing & Finance PLC Statement of Changes in Equity - Group For the three months ended 30th June 2015 Revaluation Hedging Fair Value General Statutory Invetsment Retained Non-controlling Stated Capital Total Total Equity Reserve Reserve Reserve on AFS Reserve Reserve Fund Fund Reserve Earnings Interest Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Balance as at 01st April ,425, ,980 (180,070) 40, , ,261-7,990,108 10,123,276 43,252 10,166,528 Total comprehensive income for the period Additional acquisition of NCI , ,707 3, ,750 Other comprehensive income ,079 6, , ,904 Total comprehensive income for the period ,079 6, , ,611 3, ,654 Transactions with Owners directly recorded in the Equity Transferred to/(from) during the period Balance as at 30th June ,425, ,980 (25,991) 47, , ,261-8,395,815 10,689,887 46,295 10,736,182

6 Statement of Cash Flow For the three months ended Group Company Rs. '000 Rs. '000 Rs. '000 CASH FLOW FROM OPERATING ACTIVITIES Profit before income tax expense 561, , ,289 Adjustment for: Depreciation and amortization 22,166 19,840 20,459 Provision for gratuity 2,555 1,200 1,200 Allowances for doubtful debts 245, , ,362 Provision for fall/(increase) in value of investments (33,031) (33,031) (3,994) Investment income (65,527) (65,362) (82,231) Dividend Income (284) (225) (1,972) Interest cost 702, , ,069 Share of profit of equity accounted investees (1,685) (1,685) (1,744) Operating profit before working capital changes 1,433,919 1,290,258 1,309,438 Working capital changes (Increase)/decrease in accounts receivables & others 389,258 (146,480) 54,648 Increase/(decrease) in accounts payables 1,468, ,646 (81,184) (Increase)/decrease investment in leases (941,691) (972,645) 367,993 (Increase)/decrease in factoring account receivable (190,966) (190,966) 4,112 (Increase)/decrease investment in advances and other loans (3,020,124) (1,337,052) (1,216,959) Net proceed from customer deposits 1,166,404 1,175,316 1,262,437 Cash generated from operations 305, ,078 1,700,485 Interest paid (751,658) (687,207) (626,083) Income tax paid (60,054) (60,000) (281,844) Gratuity paid - - (320) Net cash from /(used in) operating activities (506,612) (603,129) 792,238 CASH FLOW FROM INVESTING ACTIVITIES Purchased of property, plant and equipment (55,445) (31,948) (22,824) Purchases of short term investments 88,782 84,721 (200,457) Interest received 65,527 65,363 67,366 Dividend received ,972 Net cash flow from investing activities 99, ,361 (153,943) CASH FLOW FROM FINANCING ACTIVITIES Net proceed from short term borrowings (71,008) (149,000) (100,000) Proceeds from long term loans 1,500,000 1,500,000 - Repayments of long term loans (777,097) (777,097) (1,105,686) Net cash generated from financing activities 651, ,903 (1,205,686) Net increase/(decrease) in cash & cash equivalents during the period 244,431 89,135 (567,391) Cash & cash equivalents at the beginning of the period (686,772) (795,165) 80,529 Cash & cash equivalents at the end of the period (442,341) (706,030) (486,862) Analysis of cash & cash equivalents at the end of the period Cash at bank and in hand 1,030, , ,492 Bank overdraft (1,472,370) (1,472,356) (962,354) (442,341) (706,030) (486,862)

7 Commercial Leasing & Finance PLC Notes to the Interim Financial Statements 1. The Statement of Financial Position as at 30 June 2015, the Statement of Profit or Loss & other Comprehensive Income, Cash Flow Statements and Statements of Changes in Equity of the Company & the Group for the three months ended 30 June 2015 are drawn up from unaudited Financial Statements of the Company & its subsidiary, 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 & of the Group. 2. Accounting policies and method of computation as stated in the Audited financial statements for the year 2014/15 are followed in preparing of these Interim Financial Statements. 3. The Stated Capital of the Company is represented by 6,377,711,170 ordinary shares. 4. Income represents 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. 5. Other operating income includes interest on government securities, interest on Fixed Deposits, commision income, capital gains and losses arising from marked to market valuation of quoted shares held for trading purposes,and dividends. 6. All expenses related to management expenditure is fully provided for in the financial statements. 7. Previous period figures and notes have been restated and reclassified wherever necessary to conform to the current year s presentation. 8. Events after reporting date The company issued rated,senior,unsecured,redeemable debentures amounting Rs.5Bn subsequent to the reporting date with the approval of the Central Bank of Sri Lanka (CBSL). There have been no material events occurring after the reporting date that require adjustment to or disclosure in these Financial Statements other than those disclosed above. 9. There are no significant changes in the nature of the contingent liabilities disclosed in the Audited financials for the year ended 31 March 2015.

8 Segment Information - Company For the three 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 30th June 2015 Total revenue 789,821 15,218 1,009, , ,084 2,104,780 Net interest cost (252,275) (898) (338,561) (46,094) - (637,828) Profit before operating expenses 537,546 14, ,194 94, ,084 1,466,952 Operating expenses (390,753) (8,814) (398,708) (63,133) (70,357) (931,765) Value Added Tax on financial services - (99) (39,209) (5,338) - (44,646) Profit from operations 146,793 5, ,277 26,337 78, ,541 For the three months ended 30th June 2014 Total revenue 813,546 63, , , ,874 1,961,142 Net interest cost (279,939) (7,030) (319,875) (29,225) (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 - (643) (30,263) (2,765) - (33,671) Profit from operations 95,077 16, ,353 16,176 65, ,545 For the three months ended 30th June 2015 Capital expenditure ,948 31,948 Depreciation of property plant and equipment ,840 19,840 Provision for/(reversal of provision for)doubtful debts and bad debts written off 137,069 2,056 81,952 18, ,467 For the three months ended 30th June 2014 Capital expenditure ,824 22,824 Depreciation of property plant and equipment ,459 20,459 Provision for/(reversal of provision for)doubtful debts and bad debts written off 216,443 15,858 83,829 44, ,362 As at 30- June Total assets 13,522,923 48,124 19,147,628 2,606,878 9,747,895 45,073,448 Total liabilities 13,234,616 47,098 17,761,248 2,418, ,193 34,442,283 As at 30- June Total assets 11,920, ,347 14,078,323 1,286,263 5,815,876 33,400,107 Total liabilities 10,277, ,102 11,744,049 1,072, ,786 24,290,787

9 Segment Information - Group For the three 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 2015 Total revenue 792,990 19,249 1,266, , ,204 2,371,562 Net interest cost (246,511) (1,497) (409,629) (44,642) - (702,279) Profit before operating expenses 546,479 17, ,587 96, ,204 1,669,283 Operating expenses (400,236) (10,605) (500,835) (64,746) (73,297) (1,049,719) Value Added Tax on financial services - (186) (53,618) (5,844) - (59,648) Profit from operations 146,243 6, ,134 25,671 78, ,916 For the three months ended 30 June 2015 Capital expenditure ,445 55,445 Depreciation of property plant and equipment ,166 22,166 Provision for/(reversal of provision for)doubtful debts and bad debts written off 137,069 2,056 88,329 18, ,845 As at 30- June Total assets 13,535,407 82,191 23,732,736 2,586,458 9,386,316 49,323,106 Total liabilities 13,179,726 80,031 21,900,851 2,386,814 1,039,502 38,586,924

10 Statement of Director s holding and Chief Executive Officer s holding in shares of the Entity As at 30th June 2015 Directors Name No. of shares % 1 Mr. I. C. Nanayakkara - - Chairman 2 Mr. W. D. K. Jayawardena Mrs. K. U. Amarasinghe Dr. 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 2015 Shareholder No. of % of Issued Shares Capital 1 LANKA ORIX LEASING COMPANY PLC 6,308,876, BROWNS INVESTMENTS PLC 40,000, SINHARAJA HILLS PLANTATION PVT LIMITED 5,302, CHEMICAL INDUSTRIES (COLOMBO)LTD/CIC CHARITABLE & EDUCATIONNAL TRUST FUND 4,000, CEYLON BISCUITS LIMITED 2,000, SEYLAN DEVELOPMENTS PLC 2,000, MISS N.R. MATHER 1,000, MRS. R.L. MATHER 1,000, MR. S.R. MATHER 1,000, MR. D.N.N. LOKUGE 890, MR. A.N. WILLIAM 650, MR. W.V.A.N. FERNANDO & MRS. K.M.M.V.R. JAYASURIYA 500, PEOPLE`S LEASING & FINANCE PLC/K.L.UDAYANANDA 460, DR. H.S.D.SOYSA 400, BANSEI SECURITIES FINANCE (PVT) LTD/C.P.A.GUNASEKERA 400, MR. P.B. JAYASUNDARA 260, MR. S.M.M. ABDUL GHAFFOOR 200, ASSETLINE LEASING COMPANY LTD/M.J.T.WAAS 200, MR. H.E.P. BABAPULLE 200, MR. J.B.W. KELEGAMA 200, Total shares held by Top 20 Shareholders 6,369,539, Public Holding Percentage as at 30th June 2015 being 1.076% comprising of 842 shareholders.