INTERIM FINANCIAL STATEMENTS ASIA ASSET FINANCE PLC

Transcription

1 INTERIM FINANCIAL STATEMENTS ASIA ASSET FINANCE PLC For the nine months ended 31st December 2016

2 CONTENTS Statement of Comprehensive Income 01 Statement of Financial Position 02 Statement of Changes in Equity 03 Statement of Cash Flows 04 Segmental Analysis 05 Explanatory Notes 06 Shareholders Information 07 Corporate Information 08

3 ASIA ASSET FINANCE PLC Page 1 STATEMENT OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED 31 DECEMBER, 2016 For the quarter ended For the nine months ended LKR LKR Change LKR LKR Change Unaudited* Unaudited* % Unaudited* Unaudited* % Interest Income 542,430, ,863, % 1,461,323, ,724, % Interest Expenses (248,528,659) (156,349,947) 59.0% (669,483,048) (429,110,251) 56.0% Net Interest Income 293,901, ,513, % 791,840, ,614, % Net Trading Gain/(Loss) on Equity Securities (15,437) (1,930,230) -99.2% 2,347,961 (1,758,814) 100.0% Other Operating Income 29,589,475 49,513, % 81,717,332 93,682, % Less: Operating Expenses Personnel Costs (84,917,177) (67,507,891) 25.8% (252,457,703) (180,113,712) 40.2% Provision for Staff Retirement Benefits (1,200,000) (245,274) 389.2% (3,600,000) (735,822) 389.2% General and Administration Expenses (68,826,029) (52,716,054) 30.6% (195,973,219) (139,208,897) 40.8% Impairment Charge for Lease Rentals Receivable, Hire Purchase and Loans and Advances (70,000,000) (39,666,668) 76.5% (165,000,000) (65,666,668) 151.3% Operating Profit before Value Added Tax on Financial Services 98,532,526 60,960, % 258,874, ,813, % Value Added Tax on Financial Services (9,000,000) (9,841,751) -8.6% (35,100,000) (25,086,758) 39.9% Profit Before Taxation 89,532,526 51,119, % 223,774, ,726, % Income Tax (Expenses) / Reversal (10,500,000) (7,382,298) 42.2% (31,500,000) (22,146,894) 42.2% Profit for the Period 79,032,526 43,736, % 192,274, ,579, % Actuarial Loss on Retirement Benefit Liability Income Tax on Components of Other Comprehensive Income Other Comprehensive Income for the Period Net of Tax Total Comprehensive Income for the Period 79,032,526 43,736, % 192,274, ,579, % Earnings Per Share - Basic % % * The above figures are provisional and subject to audit. * Figures in brackets indicate deductions.

4 ASIA ASSET FINANCE PLC Page 2 STATEMENT OF FINANCIAL POSITION (0) - AS AT 31 DECEMBER, Change LKR LKR % Unaudited* Audited* ASSETS Cash and Cash Equivalents 499,950, ,797, % Investment in Reverse Repurchase Agreements Against Treasury Bills and Bonds 441,645, ,866, % Other Financial Assets 51,123,829 8,817, % Financial Assets - Held for Trading 226,431 48,244, % Loans and Advances 6,783,376,984 4,825,421, % Lease Rentals Receivable and Hire Purchase 1,441,233,558 1,702,419, % Real Estate Inventories - 34,468, % Other Assets 12,132,131 14,958, % Advances, Deposits and Prepayments 63,203,559 60,178, % Financial Assets - Available for Sale 506, ,659 - Property, Plant and Equipment 166,518, ,026, % Investment Property 287,082, ,706, % Deferred Tax Assets 100,402, ,402,344 - Intangible Assets 11,353,162 11,585, % Total Assets 9,858,756,386 8,115,400, % LIABILITIES Due to Banks 116,885, ,925, % Other Liabilities 37,053,259 40,410, % Current Tax Liabilities 9,263,709 28,044, % Other Borrowed Funds 2,368,171,196 1,609,833, % Due to Customers 5,657,708,941 4,796,299, % Retirement Benefit Liability 15,868,088 12,355, % Total Liabilities 8,204,950,301 6,653,869, % SHAREHOLDERS' FUNDS Stated Capital 1,388,935,273 1,388,935,273 - Retained Earnings 209,677,432 27,016, % Statutory Reserve Fund and Other Reserves 55,193,380 45,579, % Total Equity 1,653,806,085 1,461,531, % Total Equity and Liabilities 9,858,756,386 8,115,400, % Contingent Liabilities and Commitments 208,571, ,794, % Net Assets Per Share % * Figures in brackets indicate deductions. I certify that the above Interim Financial Statements are in compliance with the requirements of the Companies Act No. 7 of 2007 and give a true and fair view of the state of affairs of Asia Asset Finance PLC as at 31st December 2016 and its profit for the nine months ended 31st December Sgd. Geethika Elwalage Assistant General Manager - Finance & IT The Board of Directors is responsible for the preparation and presentation of these Interim Financial Statements. Sgd. R.J.A. Gunawardena Director/CEO Sgd. H.L.L.M. Nanayakkara Director/Chairman 18th January 2017 Colombo * The above figures are provisional and subject to audit.

5 ASIA ASSET FINANCE PLC Page 3 STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED 31 DECEMBER, 2016 Stated General Statutory Reserve Investment Accumulated Capital Reserve Fund Fund Reserve Profit/(Loss) Total Rs. Rs. Rs. Rs. Rs. Rs. Balance as at 1st April, 2015(Audited) 1,388,935,273 3,000,000 33,788,597 - (140,013,446) 1,285,710,424 Profits for the nine months ended ,579, ,579,504 Transferred to/from reserves During the Period - - 6,028,975 - (6,028,975) - Balance as at 31st December, 2015 (Unaudited*) 1,388,935,273 3,000,000 39,817,573 - (25,462,917) 1,406,289,929 Balance as at 1st April, 2016 (Audited) 1,388,935,273 3,000,000 42,579,648-27,016,515 1,461,531,436 Profits for the nine months ended ,274, ,274,649 Transferred to/from reserves During the Period - - 9,613,732 - (9,613,732) - Balance as at 31st December, 2016 (Unaudited*) 1,388,935,273 3,000,000 52,193, ,677,432 1,653,806,085 * The above figures are provisional and subject to audit. * Figures in brackets indicate deductions.

6 ASIA ASSET FINANCE PLC Page 4 STATEMENT OF CASH FLOW FOR THE NINE MONTHS ENDED 31 DECEMBER, Rs. Rs. Unaudited* Unaudited* Cash Flows From / (Used in) Operating Activities Profit Before Tax 223,774, ,726,398 Adjustments for Depreciation and Amortization 23,959,774 15,740,058 Impairment of Loans, Lease and Hire Purchase 165,000,000 65,666,668 Profit on Sale of Quoted Equity Shares (603,213) (54,379) Gain on Fair Valuation of Held for Trading Securities (1,744,748) 1,813,193 Profit from Sale of Property, Plant and Equipment and Investment Property 3,448,926 (10,383,131) Provision for Retirement Benefit Liability 3,600, ,822 Finance Cost 2,391,758 65,600,823 Profit from Operation Before Working Capital Changes 419,827, ,845,453 (Increase)/Decrease in Vehicle Stock - 38,882,933 (Increase)/Decrease in Real Estate Inventories 34,468,475 3,381,397 (Increase)/Decrease in Lease Rentals Receivable and Hire Purchase 260,628,646 (486,637,764) Increase in Loans and Advances (2,239,663,926) (1,370,652,959) (Increase)/Decrease in Other Receivables 2,826,696 7,472,843 (Increase)/Decrease in Deposits and Prepayments (3,024,809) (19,922,379) (Increase)/Decrease in Other Financial Assets (42,306,499) 675,104 Increase in Deposits from Customers 861,409, ,357,171 Increase/(Decrease) in Other Liabilities (3,357,525) (4,425,005) Net Cash From/(Used in) Operating Activities before Income Tax Payments (709,192,755) (735,023,205) Taxes Paid (28,612,212) (2,495,495) Gratuity Paid (87,500) - Net Cash From Operating Activities (737,892,467) (737,518,700) Cash Flows from / (Used in) Investing Activities Acquisition of Property, Plant and Equipment 46,916,161 (104,870,024) Acquisition and proceeds from sale of Investment Property 9,500,000 (10,669,721) Proceeds from sale of real estate inventories 32,450,000 - Acquisition/ proceeds from of Vehicle Stock - 54,306,972 Purchases of held for trading securities - (128,796) Proceeds from sales of held for trading securities 49,224,546 13,201,014 Proceeds from sales of property, plant and equipment 6,580,000 11,610,000 Net Cash Flows From/(Used in) Investing Activities 144,670,707 (36,550,555) Cash Flows from / (Used in) Financing Activities Repayment of Other Borrowed Funds (706,956,290) (208,401,069) Proceeds from Other Borrowed Funds 1,272,150, ,874,187 Net Cash Flows From/(Used in) Financing Activities 565,194, ,473,118 Net Increase in Cash and Cash Equivalents (28,027,412) (82,596,138) Cash and Cash Equivalents at the Beginning of the Period 852,738, ,160,415 Cash and Cash Equivalents at the End of the Period 824,711, ,564,277 At the End of the Period Cash and Cash Equivalents 499,950, ,107,602 Investment in Reverse Repurchase Agreements Against Treasury Bills and Bonds 441,645, ,945,969 Bank Overdraft (116,885,109) (123,489,294) 824,711,421 (0) 623,564,277 * The above figures are provisional and subject to audit.

7 ASIA ASSET FINANCE PLC Page 5 FINANCIAL REPORTING BY SEGMENT AS AT 31 DECEMBER, 2016 Finance Lease Hire Purchase Loans and Advances Investment Gold Loan Other Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Total Interest Income 219,803, ,593,044 33,414,727 71,794, ,900, ,307,686 75,363,227 71,645, ,041,943 42,383,987 22,800,007-1,461,323, ,724,667 Other Income 9,536,855 5,969,706 1,449,804 2,512,366 44,334,897 18,697,478 2,976,993 2,507,149 18,390,019 1,483,178 7,376,725 60,753,962 84,065,293 91,923,839 Total Revenue 229,339, ,562,750 34,864,531 74,306,875 1,040,235, ,005,164 78,340,220 74,152, ,431,962 43,867,165 30,176,733 60,753,962 1,545,388, ,648,506 Segmental Result 38,417,719 30,152,748 5,840,306 12,689, ,254,241 94,440,221 13,123,105 12,663,511 22,184,244 7,491,476 5,055,033 10,375, ,874, ,813,156 Value Added Tax on Financial Services (35,100,000) (25,086,758) Profits from Operations 223,774, ,726,398 Income Tax Charge/Reversal for the Period (31,500,000) (22,146,894) Net profit for the Period 192,274, ,579,504 Segment Assets 1,221,623,119 1,332,475, ,610, ,961,514 5,684,287,268 3,741,492, ,453, ,201,021 1,099,089, ,852, ,218,063,991 6,538,982,658 Unallocated Assets ,692, ,485, ,692, ,485,733 Total Assets 1,221,623,119 1,332,475, ,610, ,961,514 5,684,287,268 3,741,492, ,453, ,201,021 1,099,089, ,852, ,692, ,485,733 9,858,756,386 7,165,468,391 Segment Liabilities 1,079,119, ,240, ,992, ,887,825 5,021,208,016 2,567,118, ,565, ,666, ,879, ,623, ,142,765,245 4,486,537,401 Unallocated Liabilities ,185,056 1,272,641,061 62,185,056 1,272,641,061 Total Liabilities 1,079,119, ,569, ,992, ,677,163 5,021,208,016 2,490,429, ,565, ,952, ,879,520 33,816,325 62,185, ,469,593 8,204,950,301 5,759,178,462 In determining segment results, Expenses have been allocated proportionately based on interest income Segment Liabilities have been proportionately allocated based on the segment assets.

8 ASIA ASSET FINANCE PLC Page 6 NOTES TO THE FINANCIAL STATEMENTS The Interim Financial Statements are in compliance with the Sri Lanka Accounting Standard - LKAS 34: Interim Financial Reporting and the provisions of the Companies Act No. 7 of 2007 and provide the information as required in terms of Rule 7.4 of the Colombo Stock Exchange. The company has adopted consistent accounting policies and methods of computation as disclosed in the Annual Report for the year ended 31st March The Interim financial statements of Asia Asset Finance PLC for the period ended 31st December, 2016 (including comparatives) were approved and authorized for issue on 18th January 2017 in accordance with a resolution of the board of directors on18th January The presentation and classification of the financial statements for previous periods have been amended where relevant for better presentation and to be comparable with those of the current period. Earning per share has been annualised for the quarter ended and nine months ended 31st December, 2016 in the statement of Comprehensive income. Subsequent to Balance sheet date,no circumstances has arise that would require adjustments to or disclosure in the Financial statements. 07. Stated capital is represented by number of shares in issue as follows Issued and Fully Paid Ordinary Shares (Quoted) 839,207, ,207, Market Value of Shares Rs. Rs. Highest Traded Price Lowest Traded Price Closing Price There has been no significant change to the contingent liabilities disclosed in the previous Audited Financial statements.

9 ASIA ASSET FINANCE PLC Page 7 NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER, Major 20 share holders as at 31st December 2016 NAME No of Shares (%) 1 Muthoot Finance Limited 503,524, J.B. Cocoshell (Pvt) Ltd 42,429, Seylan Bank PLC/Thirugnanasambandar Senthilverl 35,513, Pan Asia Banking Corporation PLC/Mr.Manohan Nanayakkara 27,055, Mrs. G.I. Vasunthara 16,344, Mr. S.D.R.Arudpragasam 16,302, People'S Leasing & Finance PLC/Mr.W.K.R.Jayakody 11,720, Mr. P.A.D.R.U. Pushpakumara 11,711, Mr.K.M.S.M.Razeek,Mr.K.S.M.Rajubdeen & Mr.S.M.R.Mohamed 7,400, Mr.P.P. Subasinghe 4,381, Code-Gen International Pvt Ltd 4,241, Ceylon Biscuits Limited 3,750, Mr.C.W. Gunasekara 3,700, Elgin Investments Limited 3,141, Mr.K.S.D.Senaweera 2,925, M Investments Lanka (Pvt) Ltd 2,578, Mr.C.R.Perera 2,289, Mr.S.Abishek 2,133, Mr.W.Gunarathne 2,034, Mr.U.C.Bandaranayake & Mrs. L.Bandaranayake 2,000, Mr.D.Kotthoff 2,000, ,177, Othres 132,030, Total 839,207, No of Shareholders % of Shareholdin 11. Shares held by public as at 31st December , Directors Share Holding No. of Shares % Name Pan Asia Banking Corporation PLC / Mr. H.L.L.M. Nanayakkara 27,055, Mr.Rajiv James Abeywickrema Gunawardena - - Ms.Dayangani Priyanthi Pieris 600, Mr.G.Alexander , Mr.R.A.T.P.Perera - - Mr.K.R.Bijimon - - Mr.K.G.K.Pillai - - Mr.R.A.B. Basnayake - -

10 ASIA ASSET FINANCE PLC Page 8 NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER, Corporate Information Name of the Company Bankers of the Company : Asia Asset Finance PLC Bank of Ceylon Commercial Bank of Ceylon PLC Legal Form Incorporated as a Private Limited Liability Company under the DFCC Vardhana Bank PLC Hatton National Bank PLC Companies ordinance, no 51 of 1938 (Cap 145) on 23 September 1970 Pan Asia Banking Corporation PLC People's Bank and name changed under the Companies ordinance, no 51 of 1938 (Cap 145) on 03 October 2006 and Re-registered under the companies Act No.07 of 2007 on 23 January 2008 and converted to a public company under the companies Act No.07 of 2007 on 20 March Sampath Bank PLC National Development Bank PLC Seylan Bank PLC Indian Bank Registration Number (Under the Companies Act No.17 of 1982) PVS/PBS 3266 New Registration Number (Under the Companies Act No.7 of 2007) PB 139 PQ Audit Committee Mr.Thusitha Perera Mr.Kuttikattu Rajappan Bijimon Registered Office No.76/1, Dharmapala Mawatha,Colombo 03. Telephone Integrated Risk Management Committee Mr.Rajiv James Abeywicrema Gunawardena Mr.Thusitha Perera Mr.Roshan De Silva Gunasekara (General Manager) Fax Remuneration Committee info@asiaassetfinance.lk Mr.Thusitha Perera Mr.George Muthoot Alexander Website Related Party Transactions Review Committee Board of Directors of the Company Ms.Dayangani Priyanthi Pieris Mr.Rajiv James Abeywickrema Gunawardena Mr.Kuttikattu Rajappan Bijimon Ms.Dayangani Priyanthi Pieris Mr.Thusitha Perera Mr. George Muthoot Alexander Mr. Kuttikattu Rajappan Bijimon Mr.Kiran Gopala Krishna Pillai Mr.Rajitha Ananda Bandara Basnayake IT committee Ms.Dayangani Priyanthi Pieris Mr.Rajitha Ananda Bandara Basnayake Company Secretory P R Secretarial Services (Pvt) Ltd 59 Gregory Road, Colombo 07. Lawyers of the Company Shiranthi Gunawardena Associates No.22/1, Elliot Place, Colombo 08. Company Auditors - External BDO Partners 65/2, Sir Chiththapalam A Gardiner Mawatha, Colombo 02.