INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 31ST DECEMBER 2017 (FORMERLY KNOWN AS SUMMIT FINANCE PLC)

Transcription

1 INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 31ST DECEMBER 2017 (FORMERLY KNOWN AS SUMMIT FINANCE PLC) City Office, 61,D.S Senanayake Mawatha, Colombo 08. Tel : (+94) / (+94) / (+94) Fax: (+94) info@primefinance.lk Web :

2 Prime Finance PLC STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2017 As At As At (Unaudited) (Audited) Assets Cash & Cash Equivalents 317,231, ,416,689 Financial Investments - Held for Trading Loans and Advances 1,439,116,758 1,074,545,486 Lease Rentals Receivable & Stock Out on Hire 165,787,554 91,555,419 Financial Investments - Available for Sale 56,300 56,300 Financial Investments - Held to Maturity 91,617,275 89,482,222 Other Financial Assets 544,117, ,682,831 Inventories - Real Estate Stock 109,368,558 38,532,048 Other Non Financial Assets 25,494,018 21,217,539 Property, Plant & Equipment 26,999,366 19,464,312 Intangible Assets 1,507,099 2,328,269 Deferred Tax Asset 22,488,656 22,488,656 Total Assets 2,743,784,700 1,701,770,291 Liabilities Due to Banks 113,489,126 39,424,575 Due to Customers 1,778,147,651 1,311,055,978 Other Financial Liabilities 228,611,144 6,434,521 Other Non-Financial Liabilities 80,698,065 26,231,948 Retirement Benefit Liability 3,930,312 2,184,180 Total liabilities 2,204,876,297 1,385,331,202 Shareholders' Funds Stated Capital 508,500, ,000,000 Retained Earnings 22,371,733 83,402,419 Other Reserves 8,036,670 8,036,670 Total Shareholders' Funds 538,908, ,439,089 Total Liabilities and Shareholders' Funds 2,743,784,700 1,701,770,291 Commitments and Contingencies 6,300,975 7,052,353 Net Assets Per Share () I certify that these Financial Statements are in compliance with the requirements of the Companies Act No. 07 of Sgd. Sgd. E. D. A. Sanjeewa Rasika Kaluarachchi Assistant Accountant Chief Executive Officer The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board by, Sgd. Sgd. M. D. Saddha Mangala Goonetilleke H. M. Hennayaka Bandara Director Director 09th February 2018 Colombo -1-

3 Prime Finance PLC STATEMENT OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED Variance Variance (Unaudited) (Unaudited) (Unaudited) (Unaudited) % % Interest Income 277,795, ,876,319 26% 109,205,753 75,012,124 46% Interest Expenses (122,259,830) (95,713,877) -28% (55,353,779) (33,341,041) -66% Net Interest Income 155,535, ,162,443 25% 53,851,974 41,671,083 29% Fee and Commission Income 5,238,075 3,757,036 39% 2,108,105 2,009,669 5% Fee and Commission Expenses - - 0% - - 0% Net Fee and Commission Income 5,238,075 3,757,036 39% 2,108,105 2,009,669 5% Net Gain/(Loss) from Trading (70) (140) 50% % Other Operating Income (net) 27,655,607 1,406, % 20,403, , % Total Operating Income 188,428, ,325,995 46% 76,363,366 44,357,688 72% Impairment (Charges)/Reversals for Loans and Other Credit Losses (126,656,186) (13,416,818) -844% (55,125,635) (968,619) -5591% Net Operating Income 61,772, ,909,177-47% 21,237,731 43,389,069-51% Operating Expenses Personnel Costs (52,813,111) (45,377,873) -16% (15,739,250) (15,753,888) 0% Depreciation of Property Plant & Equipment (7,870,370) (7,187,930) -9% (2,710,123) (2,467,898) -10% Amortisation of Intangible Assets (821,169) (596,475) -38% (274,719) (199,548) -38% Other Operating Expenses (61,221,625) (48,427,533) -26% (24,742,879) (16,839,415) -47% Profit/ (Loss) before VAT on financial services (60,953,488) 14,319, % (22,229,240) 8,128, % Value Added Tax on Financial Services (77,199) (5,576,879) 99% - (2,869,992) -100% Profit/( Loss) from Operations before Taxation (61,030,687) 8,742, % (22,229,240) 5,258, % (Provision)/Reversal for Income Taxation - (839,230) -100% (839,230) -100% Profit/(Loss) for the Year (61,030,687) 7,903, % (22,229,240) 4,419, % Other Comprehensive Income / (Expenses) Other Comprehensive Income not to be reclassified to Profit or Loss Actuarial Gain / ( Loss ) on Retirement Benefit Obligations - Other Comprehensive Income/(Expense) for the Year, net of taxes - Total Comprehensive Income/(Expense) for the Year (61,030,687) 7,903, % (22,229,240) 4,419, % Earnings Per Share (Rs) (2.17) 0.35 (0.62)

4 Prime Finance PLC STATEMENT OF CHANGES IN EQUITY Stated Capital Retained Earnings Statutory Reserve Total Note Balance as at 01st April ,000,000 86,272,137 7,910, ,182,659 Net Profit for the Year - 7,903,256-7,903,256 Other Comprehensive Income Transfer to Statutory Reserve Balances as at 31st December ,000,000 94,175,393 7,910, ,085,916 Restated Balances as at 01st April ,000,000 83,402,420 8,036, ,439,090 Net Profit for the Year (61,030,687) (61,030,687) Other Comprehensive Income - - Transfer to Statutory Reserve Rights Issue 283,500, ,500,000 Balances as at 31st December ,500,000 22,371,733 8,036, ,908,403-3-

5 Prime Finance PLC STATEMENT OF CASH FLOWS Cash Flows From / (Used in) Operating Activities (Unaudited) (Unaudited) Profit/( Loss) before Income Tax Expense (61,030,687) 8,742,486 Adjustments for Depreciation 7,870,370 7,187,930 Amortisation of Intangible Assets 821, ,475 Impairment Provision 126,656,186 13,416,818 Interest Cost on Finance Lease 128, ,983 Diminution/(Appreciation) in value of investments Provision/(Reversal) for Defined Benefit Plans 1,938, ,000 Dividend Received (180,000) (58,502) Operating Profit before Working Capital Changes 76,203,367 31,052,331 (Increase)/Decrease in Real Estate Stock (70,836,510) - (Increase)/Decrease in Loans and Advances (512,938,044) (57,222,304) (Increase)/Decrease in Lease Rentals Receivable & Stock out on hire (52,521,548) 44,329,425 (Increase)/Decrease in Other Financial Assets(Excluding Investments in Banks & other financial Institutions) (475,999) (317,646) (Increase)/Decrease in Financial Investments - 16,602,880 (Increase)/Decrease in Other Non Financial Assets (4,276,479) (2,236,691) Increase/(Decrease) in Amounts Due to Customers 467,091,673 (29,598,745) Increase/(Decrease) in Other Financial Liabilities (3,848,227) (204,126) Increase/(Decrease) in Other Non Financial Liabilities 54,466,117 (4,275,115) Cash Generated from/( Used in) Operations (47,135,649) (1,869,991) Retirement Benefit Liabilities Paid (192,000) - Net Cash From/(Used in) Operating Activities (47,327,649) (1,869,991) Cash Flows from / (Used in) Investing Activities Acquisition of Property, Plant & Equipment (15,405,424) (5,723,887) Proceeds from Sales of Shares 450 Investments in Banks & Other Fnancial Institutions (329,958,684) 7,257,035 Sale/(Purchase) of Financial Investments- Held to Maturity (2,135,053) (17,723,423) Dividend Received 180,000 58,502 Net Cash Flows from/(used in) Investing Activities (347,318,711) (16,131,773) Cash Flows from / (Used in) Financing Activities Right Issue 283,500,000 - Payment under Finance Lease Liabilities (733,776) (825,498) Cash Flow from borrowings 325,991,516 - Net Cash Flows from/(used in) Financing Activities 608,757,740 (825,498) Net Increase in Cash and Cash Equivalents 214,111,380 (18,827,262) Net Cash and Cash Equivalents at the beginning of the Year 90,198,372 30,620,745 Cash and Cash Equivalents at the end of the year (Note A) 304,309,752 11,793,483 Note A Analysis of Cash and Cash Equivalents Cash & Cash Equivalents 317,231,603 25,227,109 Bank Overdrafts (12,921,851) (13,433,627) Net Cash & Cash Equivalents 304,309,752 11,793,483-4-

6 Prime 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 Interest Income 15,584,667 17,353, ,707, ,798,828 26,503,518 15,724, ,795, ,876,319 Interest Expenses (6,858,933) (7,553,971) (103,736,491) (81,314,987) (11,664,405) (6,844,918) (122,259,830) (95,713,877) Net Interest Income/(Expenses) 8,725,733 9,799, ,970, ,483,841 14,839,113 8,879, ,535, ,162,442 Fee and Commission Income 293, ,514 4,444,465 3,191, , ,682 5,238,075 3,757,036 Other Operating Income ,655,537 1,406,516 27,655,537 1,406,516 Impairment (Charge)/Reversal for Loans and Other 21,710, ,999 (148,366,773) (13,868,818) - - (126,656,186) (13,416,818) Credit Losses Net Operating Income 30,730,183 10,547,715 (11,951,793) 94,806,863 42,994,397 10,554,598 61,772, ,909,176 Other Costs 6,397,495 7,403,350 96,757,565 79,693,620 10,879,676 6,708, ,034,736 93,805,406 Depreciation & Amortisation 487, ,364 7,374,702 6,613, , ,697 8,691,540 7,784,405 Profit/ (Loss) before VAT on financial services 23,845,082 2,530,001 (116,084,060) 8,499,899 31,285,491 3,289,466 (60,953,488) 14,319,365 Value Added Tax on Financial Services & Income Tax (77,199) (6,416,109) Profit/(Loss) for the Year (61,030,687) 7,903,256 Segmental Assets 193,562,967 94,446,860 1,680,220,884 1,156,331, ,000, ,496,650 2,743,784,700 1,432,275,404 Segmental Liabilities 155,545,149 72,878,216 1,350,207, ,262, ,123, ,048,617 2,204,876,297 1,105,189,487-5-

7 PRIME FINANCE PLC 1. The Interim Financial Statements of the Company have been prepared based on the Sri Lanka Accounting Standards that came into effect from January 01, 2012 (SLFRS/LKAS). There were no changes to the Accounting Policies and methods of computation since the publication of the Audited Financial Statements for the Year Ended 31st March Further, these Interim Financial Statements have been prepared in compliance with the requirements of the Sri Lanka Accounting Standard (LKAS 34) on Interim Financial Reporting and provide the information required by the Colombo Stock Exchange. 2. There were no significant changes in the nature of contingent liabilities which were disclosed in the Audited Financial Report for the year ended 31st March Public share holdings The percentage of shares held by the public as at 31st December 2017 was 10.05% and the number of public shareholders as at 31st December 2017 were Director's share holding as at 31st December 2017 The number of shares held by the Board of Directors are as follows; Name of the director No. of shares ( % ) Mr. M. D. Saddha Mangala Goonetilleke 10, Ms. H. K. Sadamini Rukmal Perera 50, Mr. B. Premalal 50, Mr. Nandana A. Wickramage 20, Mr. P. Anura Wijesiri Perera 10, Mr. H. M. Hennayaka Bandara Nil Nil Mr. Mahinda Perera Nil Nil Mr. Dhammika Hemantha Kalapuge Nil Nil 3.2 Twenty largest shareholders as at 31st December 2017 Name No. of shares % of holding 1 Seylan Bank PLC/MS.Prime Lands (Pvt) Ltd 32,191, % 2 Mr.Peramuna Gamaethige Kumaradasa 1,227, % 3 Mr. Ruminda Randeniya 152, % 4 Mr. Francis Jayarupan Pradeep Raj 125, % 5 Mr.Lalith Rukman Jayaweera 113, % 6 Mr.Premadasa Manamperi 103, % 7 Mrs. Deyalage Janitha Shamali 100, % 8 Mr. Ranasinghe Halnetti Padmaperuma Dushantha Rangana 100, % 9 Mr. Mallikage Adisha Sagara Wijerathne 80, % 10 Bansei Securities Capital (Pvt) Ltd/M.A.U. Gnanatilake 66, % 11 The Victoria International Private Limited 65, % 12 Mr. Heenatigala Mudiyanselage Nalinda Udesh Kumara 50, % 13 Mrs.Hena Kankanamge Sandamini Rukmal Perera 50, % 14 Mr.Brahammanage Premalal 50, % 15 Mr. Herath Mudiyanselage Prabath Krishantha Bandara 50, % 16 Ms. Shehana Sonali Ann Piumi Brahamanage 50, % 17 Citizens Development Business Finance PLC/W.G.J.Banda 48, % 18 Mr.Herath Mudiyanselage Gayan Buddhika Piyabashitha Herath 48, % 19 Mr.Don Hema Jayantha Wijeratna Ponnamperuma 40, % 20 People's Leasing & Finance Plc/ Mr.M.A.U.Gnanathilake 34, % 34,747, % Others 1,252, % 36,000, % 6

8 PRIME FINANCE PLC 3.3 Computation of Public Share Holding as at 31st December 2017 No. of shares % of shares as at 31st December Parent, subsidiary or associate entities or any subsidiary or associates of its Parent Entity Seylan Bank PLC/MS.Prime Lands (Pvt) Ltd 32,191, % Directors of the entity, their spouses and children under 18 years of age Mr. M. D. Saddha Mangala Goonetilleke 10, % Ms. H. K. Sadamini Rukmal Perera 50, % Mr. B. Premalal 50, % Mr. Nandana A. Wickramage 20, % Mr. P. Anura Wijesiri Perera 10, % Mr. H. M. Hennayaka Bandara Nil Nil Mr. Mahinda Perera Nil Nil Mr. Dhammika Hemantha Kalapuge Nil Nil Key Management personnel and their close family members Nil Nil Other related entites/ parties Mr. H.M.N.U. Kumara 50, % Total non-public share holding 32,381, % Public Share Holding 3,618, % Total Issued Share Capital 36,000, % Total number of non-public shareholders as at Total number of public shareholders as at Total number of shareholders as at Stated Capital Stated Capital is represented by number of shares in issue as given below: No of Shares as at 31-Dec Mar-17 Ordinary Shares 36,000,000 22,500, Continuous Disclosure regarding status of utilization of funds raised Via Right Issue Right Issue proceeds utilization as at Objective Number 1 Obective as per circular Expand the income earning assets base of the company. Amount allocated as per circular in LKR 283,500,000 Proposed date of utilization as per circular Financial Year 2017/2018 Amount allocated from proceeds in LKR (A) Precentage of total proceeds Amount utilized in LKR (B) Precentag e utilized against allocation (B/A) Clarification if funds are not fully utilized including where the funds are invested (Whether lent to related party/s etc.) 283,500, % 283,500, % N/A 3.6 Earning per share Earning per share has been calculated, for all periods, based on the number of shares in issue as at 31st December Market value per share for the quarter ended 31-Dec Dec-16 Highest Price Lowest Price Last Traded

9 PRIME FINANCE PLC 4. Impairment charges for loans & other credit losses of 126,656,186 mainly represents the provisions made for Loans & Advances granted prior to acquisition. 5. Commitments and Contingencies There were no material contingent liabilities and /or capital commitments as at reporting date except for the undrawn loan commitment as follows : 31-Dec Mar-17 Commitment for Unutilised Facilities 6,300,975 7,052, Events occuring after Balance Sheet date Company Name was changed as Prime Finance PLC on 02nd October 2017 with the approval of registrar of companies. There were no material events that have taken place subsequent to the balance sheet date, which require adjustments to or disclosure in the Financial Statements except as explained above. 7. Comparative figures Comparative period's figures have been presented with out any amendment. 8

10 PRIME FINANCE PLC INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 31 ST DECEMBER RELATED PARTY DISCLOSURES Quarter Ended 31 st December Transactions with Parent Company During The Quarter Ended Land Sold to Parent Company (Prime Lands Private Limited) 54,300,000 54,300,000 Items in Statement of Comprehensive Income Reported under Net gain From Land Sale Net Gain/(Loss) from Trading 18,986, Transactions with Subsidary of Parent's Company (Prime Residencies) Interest payable on Fixed Deposit for the quarter ened ,652,219 Items in statement of Financial Position Assets Reported under Deposit made by Prime Residencies as at ,113,452 Interest payable on Deposits for the quarter ended Due to Customers 1,652,219 Balance as at Due to Customers 52,765,671 Items in Statement of Comprehensive Income Reported under Interest Expense on Deposits for the quarter ended Interest Expenses 1,652, Transactions with Directors' and CEO of the Company B. Premalal H.K.S.R. Perera N.A. Rasika Wickramage Kaluarachchi Deposits made directors their spouces and CEO and his spouce as at 30th September ,425,298 6,198,220 5,183 - Items in statement of Financial Position Reported under Assets Deposits made during the quarter ended 31st December 2017 Due to Customers - 26,444,263-33,925 Interest payable on Deposits for the quarted ended Due to Customers 423, , Balance as at Due to Customers 11,848,869 33,195,652 5,288 34,056 Items in Statement of Comprehensive Income Interest Expense on Deposits for the quarter ended Interest Expenses 423, , , , Related Party transactions for the quarter ended 31st December 2017 exceeding 10% of the Equity or 5% of the total Assets of the entity as per Audited Financial Statements, whichever is lower. Name of the Related Party Relationship Terms of the Transaction Date Of Transaction Amount ( ) Rationale for Entering Transaction Prime Lands (Pvt) Ltd. Parent Company Sale of land 15/12/ ,300,000 Normal course of business H.K.S.R. Perera Director of the Company Fixed Deposits placed at the Company 28/11/ ,444,263 Normal course of business 9

11 PRIME FINANCE PLC Name of the Company Prime Finance PLC Legal Form Public Limited Liability Company domiciled in Sri Lanka and incorporated on 10 th September 2004 under the Companies Act No. 17 of 1982 and re-registered under the Companies Act No. 07 of The Company is licensed under the Finance Business Act, No. 42 of Company registration number is PB 351 PQ Stock Exchange Listing The Company was listed on the Diri Savi Board of the Colombo Stock Exchange on 12th September Board of Directors 1. Mr. M. D. Saddha Mangala Goonetilleke - Chairman/Independent Non Executive Director 2. Mrs. H. K. Sadamini Rukmal Perera - Executive Director 3. Mr. B. Premalal - Non Independent Non Executive Director 4. Mr. Nandana A. Wickramage - Non Independent Non Executive Director 5. Mr. P. Anura Wijesiri Perera - Non Independent Non Executive Director 6. Mr. H. M. Hennayaka Bandara - Independent Non Executive Director 7. Mr. Mahinda Perera - Independent Non Executive Director 8. Mr. Dhammika Hemantha Kalapuge - Independent Non Executive Director Secretaries to the Company S S P Corporate Services (Private) Limited No 101, Inner Flower Road, Colombo 03 Head office & registered office of the company Registered Office :- No.61,D.S Senanayake Mawatha, Colombo 08. Head Office :- No.61,D.S Senanayake Mawatha, Colombo 08. Telephone No :- (+94) / (+94) / (+94) / (+94) Fax No :- (+94) Corporate Website :- Bankers of the Company Hatton National Bank PLC Commercial Bank PLC Seylan Bank PLC Union Bank PLC DFCC Bank PLC Bank of Ceylon People's Bank Sampath Bank PLC Nations Trust Bank PLC Nations Development Bank Auditors Messrs Ernst & Young No. 201, De Saram Place, P.O.Box 101,Colombo.10,Sri Lanka 10