Interim Financial Statements TRADE FINANCE & INVESTMENTS PLC TRADE FINANCE. For the Year ended 31st March 2018

Transcription

1 TRADE FINANCE Interim Financial Statements 31 March 2018 TRADE FINANCE & INVESTMENTS PLC Subsidiary of COMMERCIAL CREDIT & FINANCE PLC 459, Union Place, Colombo (0) / +94 (0) (0) info@tfil.lk

2 STATEMENT OF COMPREHENSIVE INCOME 31 March 2018 For the Quarter For the Ended Quarter Ended For the Nine Months For the year Ended Ended 31/03/ /03/2017 Change 31/03/ /03/2017 Change Rs. Rs. % Rs. Rs. % "Unaudited" "Unaudited" "Unaudited" "Audited" Income 522,061, ,830,132 78% 1,675,423, ,362,186 78% Intere Income 557,858, ,811,184 98% 1,592,564, ,543,668 81% Less : Intere Expense (161,675,709) (63,373,075) 155% (475,476,142) (185,049,034) 157% Net Intere Income 396,182, ,438,109 81% 1,117,088, ,494,634 61% Other Opera ng Income (35,796,660) 12,018, % 82,859,300 62,818,518 32% Total opera ng income 360,386, ,457,057 56% 1,199,947, ,313,152 59% Less : Impairment Charge for Loans and Receivables (44,820,133) (28,082,546) 60% (90,239,070) (40,931,543) 120% Net Opera ng Income 315,566, ,374,511 56% 1,109,708, ,381,609 55% Less : Opera ng Expenses Personnel Cos (24,198,714) (25,760,877) -6% (151,551,351) (98,912,792) 53% General and Adminira ve Expenses (126,400,000) (46,293,740) 173% (241,760,876) (127,605,439) 89% Opera ng Profit Before Value Added Tax on Financial Services 164,967, ,319,894 27% 716,396, ,863,378 47% Less : Value Added Tax on Financial Services (24,059,859) (20,409,152) 18% (123,051,371) (67,116,401) 83% Profit Before Taxa on 140,907, ,910,742 28% 593,344, ,746,977 41% Less : Income Tax Expense (55,361,862) (10,285,437) 438% (175,448,977) (97,054,085) 81% Profit for the Period 85,545,708 99,625,305-14% 417,895, ,692,892 29% Other comprehensive income / (expense) Items that will never be reclassified to Profit or Loss Actuarial (Loss)/ Gain arising on Re rement Benefit Obliga on Deferred Tax effect on Re rement Benefit Obliga on Items that are or may be reclassified to Profit or Loss Government Securities Fair Value Gains / (Losses) that arose during the Year Fair Value Gains realised and recycled to the Profit or Loss on disposal Equity Securities and Unit Trus Fair Value Gains that arose during the Year Fair Value Losses / (Gains) realised and recycled to the Profit or Loss on disposal 1,448, ,138 56% 1,456, ,138 57% (415,224) (259,599) 60% (407,794) (259,599) 57% 1,033, ,539-55% 1,048, ,539-57% (82,931) 375, % (82,925) 1,147, % - - 0% - - 0% 139, ,693 28% 139, ,693 28% (15,912) 215, % (15,912) 215, % 1,074,662 1,451,485 26% 1,089,528 2,224,114 51% Total Comprehensive Income 86,620, ,076,790-14% 418,985, ,917,006 28% Basic Earnings Per Share % % Figures in brackets indicate deduc ons.

3 STATEMENT OF FINANCIAL POSITION 31 March 2018 As at 31/03/ /03/2017 Rs. Rs. "Unaudited" " Audited" ASSETS Cash and Cash Equivalents 50,946,478 95,604,039 Repurchase Agreement 91,608,640 - Placements with Banks and other Finance Companies 13,621,970 10,618,858 Loans and Receivables 7,125,304,701 3,438,013,395 Available for Sale Invements 63,451,521 97,087,746 Property and Equipment 46,584,559 36,050,594 Intangible Assets 15,326,677 16,642,361 Net Deferred tax Asset 4,353,888 8,195,814 Other Assets 56,977,452 22,975,729 Total Assets 7,468,175,886 3,725,188,536 LIABILITIES Due to banks 3,292,786,909 1,163,882,987 Due to cuomers 1,918,936, ,045,549 Other liabili es 653,917, ,654,575 Provision for re ring gratuity 10,561,864 11,158,788 Current tax liability 93,846,586 31,104,107 Total Liabili es 5,970,049,609 2,418,846,006 EQUITY Stated capital 247,001, ,001,000 Statutory reserve fund Other reserves Retained earnings 134,997,857 1,425,569 1,114,701, ,103,066 1,384, ,853,811 Total Equity 1,498,126,277 1,306,342,530 Total Equity and Liabili es 7,468,175,886 3,725,188,536 I cer fy that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 7 of R. D. R. U. Wijesinghe Accountant The Board of Directors is responsible for the prepara on and presenta on of these Financial Statements. Approved and signed for and on behalf of the Board. L.G.S.Perera Director L.A.J.F Morais Managing Director Colombo. 28 th May 2018

4 STATEMENT OF CHANGES IN EQUITY 31 March March 2018 Stated Capital Statutory Reserve Fund Loan Redemp on Reserve Fund Available for Sale Reserve Retained Earnings Rs. Rs. Rs. Rs. Rs. Rs. Total Balance as at 01 April ,001,000 97,868,421 2,535,000 (171,922) 745,793,825 1,093,026,324 Total Comprehensive Income for the Year Profit for the Year ,692, ,692,892 Other Comprehensive Income Actuarial Gain on Re rement Benefit Obliga on , ,138 Deferred Tax effect on Re rement Benefit Obliga on (259,599) (259,599) Changes in Fair Value in AFS Invements ,341,350-1,341,350 Realized Loss on disposal of AFS Invement , ,225 Total Other Comprehensive Income for the Year ,556, ,539 2,224,114 Total Comprehensive Income for the Year ,556, ,360, ,917,006 Transac ons with Owners directly recorded in the Equity Contribu ons by and Diribu ons to Owners Dividends Paid (113,600,800) (113,600,800) Total Contribu ons by and Diribu ons to Owners (113,600,800) (113,600,800) Other Movements in Equity Transferred to Statutory Reserve Fund - 16,234, (16,234,645) - Transferred from Loan Redemp on Reserve Fund - - (2,535,000) - 2,535,000 - Balance as at 31 March ,001, ,103,066-1,384, ,853,811 1,306,342,530 Balance as at 01 April ,001, ,103,066-1,384, ,853,811 1,306,342,530 Total Comprehensive Income for the Year Profit for the Year ,895, ,895,819 Other Comprehensive Income Actuarial Gain on Re rement Benefit Obliga on ,456,406 1,456,406 Deferred Tax effect on Re rement Benefit Obliga on (407,794) (407,794) Changes in Fair Value in AFS Invements ,828-56,828 Realized Loss on disposal of AFS Invement (15,912) - (15,912) Total Other Comprehensive Income for the Year ,089,528-1,089,528 Total Comprehensive Income for the Year ,089, ,895, ,985,347 Transac ons with Owners directly recorded in the Equity Contribu ons by and Diribu ons to Owners Dividends Paid (227,201,600) (227,201,600) Total Contribu ons by and Diribu ons to Owners (227,201,600) (227,201,600) Other Movements in Equity Transferred to Statutory Reserve Fund Transferred from Loan Redemp on Reserve Fund - 20,894, (20,894,791) - Balance as at 31 March ,001, ,997,857-2,474,181 1,113,653,239 1,498,126,277

5 CASH FLOW STATEMENT 31 March 2018 For the Year Ended 31 March "Unaudited" "Audited" Cash Flows from Opera ng Ac vi es Intere Received 1,614,950, ,625,861 Intere Payments (213,472,780) (133,556,747) Fees, Commission and Other Income Received 46,452,442 60,889,926 Employees Related Payments (148,123,119) (83,878,370) Payment of Other Opera ng Expenses Net Cash Inflows Before Changes In Opera ng Assets (189,974,363) 1,109,832,273 (109,959,162) 572,121,508 Decrease/(Increase) in Opera ng Assets Net Fund Advanced to Cuomers (3,294,506,101) (1,003,269,972) Gratuity Paid (2,568,750) (87,500) Other Receivables (34,406,320) (3,331,481,171) 11,855,611 (991,501,861) Increase/(Decrease) in Opera ng Liabili es Net Deposit From Cuomers 1,006,236,080 (177,495,267) Other Short Term Liabili es (211,784,902) 794,451,178 18,518,023 (158,977,244) Net Cash used for Opera on Ac vi es (1,427,197,720) (578,357,597) Income Tax Paid (109,288,278) (144,322,089) Payment of VAT on Financial Services (110,973,057) (60,882,632) Net Cash Inflow / (Ou low) from Opera ng Ac vi es (1,647,459,055) (783,562,318) Cash Flows from Inves ng Ac vi es Purchase of property and equipment and intangible assets (27,432,291) (33,728,905) Net Invement in Banks and Other Financial Ins tu on - 170,783,599 Net Invement in Available for Sale Invements (57,915,587) 29,053,557 Net Invements Repurchase Agreement (91,608,640) - Proceeds from sale of available for sale invements - 47,640,666 Proceeds from sale of property and equipment 629,016 3,708,370 Net Cash Inflow / (Ou low) from Inves ng Ac vi es (176,327,502) 217,457,287 Cash Flows from Financing Ac vi es Financial Expenses (122,573,324) (37,415,589) Net Movement of the Bank Borrowings 1,991,595, ,431,198 Dividend Paid Net Cash Inflow (Ou low) from Financing Ac vi es Net Cash Inflow /(Ou low) from Inves ng and Financing Ac vi es (227,201,600) 1,641,820,456 1,465,492,954 (112,025,049) 715,990, ,447,847 Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Period Cash and Cash Equivalents at the End of the Period (181,966,102) (17,618,522) (199,584,624) 149,885,529 (167,504,051) (17,618,522) Cash and Cash Equivalents Cash in Hand and at Bank Bank Overdra 50,946,478 (250,531,102) (199,584,624) 95,604,039 (113,222,561) (17,618,522) Figures in brackets indicate deduc ons.

6 SEGMENT ANALYSIS 31 March 2018 SEGMENT ANALYSIS 31 March Finance Lease Hire Purchase and other Loans Invements Unallocated Total Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Intere 1,415,671, ,566, ,906,609 19,963,984 29,986,536 26,013, ,592,564, ,543,668 Other Opera ng Income 59,163,885 56,235,710 12,730,616 1,326, , ,208 10,576,260 4,732,371 82,859,300 62,818,518 Total Revenue 1,474,835, ,802, ,637,225 21,290,213 30,375,075 26,537,221 10,576,260 4,732,371 1,675,423, ,362,186 Profit Before Tax 522,307, ,199,251 56,534,906 9,538,393 10,757,215 11,889,146 3,745,542 2,120, ,344, ,746,977 Income Tax Expense (175,443,803) (97,054,085) Profit A er Tax ,900, ,692,892 Other Comprehensive Income 1,089,528 2,224,114-1,089,528 2,224,114 Total Comprehensive Income 418,990, ,917,006 Segment Assets 6,600,496,800 3,291,701, ,807, ,510, ,682, ,883, ,189, ,093,740 7,468,175,885 3,725,188,536 Segment Liabili es 5,274,982,914 2,040,749, ,374,889 90,831, ,794,178 63,784, ,897, ,132,233 5,970,049,609 2,309,497,791 Figures in brackets indicate deduc ons.

7 INFORMATION ON ORDINARY SHARES OF THE COMPANY 31 March Market Prices of Shares Recorded During the Period Quarter Ended 31 March Year Ended 31 March Highe Price (Rs.) Lowe Price (Rs.) Closing Price (Rs.) Stated Capital Stated Capital as at 31 March 2018 was represented by the number of shares in issue as given below; Number Rs. Ordinary Shares 56,800, ,001,000 3 Directors' and Chief Execu ve Officer's Holding in Shares as at 31 March 2018 Name of the Director Number of Shares % Holding Mr. R.S. Egodage % Mr. L.G.S. Perera % Mr. I.G.S.K. Gunaratne % Mr.D.A.Rodrigo % Mr.L.A.J.F.Morais (Chief Execu ve Officer) % 4 Net Assets Value per Share as at 31 March 2018 is Rs (As at 31 March 2017 was Rs ) 5 Top 20 Shareholder as at 31 March 2018 Name of the Shareholder Number of Shares % Holding Commercial Credit And Finance PLC 56,602, % DFCC Bank PLC/Mr.K.S.D.Senaweera 58, % Miss. S.N.Egodage 25, % Mrs. C.A.D.S.Woodward 25, % Mr. K.S.D.Senaweera 20, % Mr. M.R.Ratnasabapathy 17, % Commercial Bank Of Ceylon PLC/R.S. Fernando 10, % Mr. R.De Silva 6, % Mr. K.H.B.Haputhanthri 5, % Mr. W.D.J.M.De Silva 4, % Miss. M.S.Fernando 2, % Mr. S.Muhunthan 2, % Mr. A.Wickramatunge(Deceased) 2, %

8 31 March Top 20 Shareholder as at 31 March 2018 (Con nued) Name of the Shareholder Number of Shares % Holding Mr. S.A.J.Rodrigo 1, % Mr. A.P.Kumanayake 1, % Mr. T.Jainudeen 1, % Mr. M.R.D.S.D.Gunarathne 1, % Mr. P.P.U.Anandasiri 1, % Dr. W.M.D.Fernando 1, % Mr. P.Gajendra 1, % Percentage of Public Holding as at 31 March 2018 was 0.35%. Number of Public Share Holders as at 31 March 2018 was EXPLANATORY NOTES Statement of Financial Posi on, Statement of Comprehensive Income, Statement of Changes in Equity and Cash Flow Statement of the Company for the period ended 31 March 2018 are drawn up from unaudited accounts of the Company. Company provides informa on as required by the Colombo Stock Exchange and LKAS 34 - 'Interim Financial Repor ng'. Further, provision of the Companies Act No. 7 of 2007 has been considered in preparing the said financial atements of the Company. The profit and income of the Company are liable for taxa on at the rate of 28%. Prior period figures have been reclassified wherever necessary to conform current period presenta on. During the period there were no material changes in composi on of assets, liabili es and con ngent liabili es other than those required by LKASs/SLFRSs. The Company declared and paid the final dividend of two rupees per Ordinary Share and a interim dividend of two rupees per Ordinary share aggrega ng to a sum of Rs. 227,201,600 for the financial year ended 31 March 2017 and financial year ending 31 March 2018 respec vely. 6.6 There have been no material events occurring a er the repor ng date that require adjuments to or disclosure in the Financial Statements.

9 CORPORATE INFORMATION Name of Company Trade Finance & Invements PLC Statutory Status Quoted Public Limited Liability Company The Company was incorporated as a public limited liability Company in Sri Lanka on 05th January, 1978 under Companies Ordinance No.51 of 1938 and re-regiered under The Companies Act No.07 of 2007 on 04th September, Company Regiration PB 445 PQ 459, Union Place, Colombo 02, Sri Lanka. Tel : (+94) , , Fax : (+94) Website Branches Jaffna 74, Kannathiddy Road, Jaffna. Tel : , Fax : Kilinochchi A9 Road, Karadippokku Junction, Kilinochchi. Tel : , Fax : Batticaloa 38, New Road, Batticaloa Tel : /1 Fax : Board of Directors Mr. L.G.S. Perera - Chairman Mr. R.S. Egodage - Director Mr. I.G.S.K. Guneratne - Director Mr. L.A.J.F. Morais - Managing Director/ CEO Mr. D.A. Rodrigo - Director Audit Committee Mr. D.A. Rodrigo - Chairman Mr. L.G.S. Perera Mr. I.G.S.K. Guneratne Remuneration Committee Mr. I.G.S.K. Guneratne - Chairman Mr. L.G.S. Perera Integrated Risk Management Committee Mr. L.G.S. Perera - Chairman Mr. D.A. Rodrigo Mr. I.G.S.K. Guneratne Mr. L.A.J.F. Morais Mr. S.S. Pereira Mr. R.D.R.U. Wijesinghe Auditors KPMG, Chartered Accountants 32/A, Sir Mohomed Macan Markar Mawatha, Colombo 03. Internal Auditors M/s. H.L.B. Edirisinghe & Co. Chartered Accountants No. 45, (2nd Floor), Braybrooke Street, Colombo March 2018 Legal Consultants Negombo 163,165, Chilaw Road, Negombo. Tel : , Fax : Marawila 423/2, Mudukatuwa, Negombo road, Marawila. Tel: , Fax: Maligawatta No 65, Maligawatta Road, Colombo 10 Tel : , Fax : R.D.N. Lenora (LL.B Sri Lanka) Attorney-at-Law & Notary Public Secretaries Corporate Services (Private) Limited 216, De Saram Place, Colombo 10 Bankers Commercial Bank of Ceylon PLC Sampath Bank PLC Bank of Ceylon Cargils Bank Credit Ratings ICRA Lanka Limited National Long Term Rating (SL) BBB-