CHIEF EXECUTIVE OFFICER'S REVIEW

Transcription

1 Interim Financial Statements 31 December 2016

2 CHIEF EXECUTIVE OFFICER'S REVIEW PERFORMANCE REVIEW OVERVIEW The group posted a total income of Rs. 12,923 million for the nine months ended 31 December 2016 when compared to Rs. 9,942 million in the previous year. This represents an increase of 30% year on year mainly on account of the increased revenue flowing from the acquisition of AIA General Insurance Lanka Limited and the merger of Orient Finance PLC with Bartleet Finance PLC. The group recorded a total income of Rs. 4,264 million for the quarter ended 31 December 2016 when compared to Rs. 3,394 million in the previous year. Group profit after tax was Rs. 335 million against the Rs. 1,128 million recorded for the previous year. This is due to the extraordinary profit in the previous year arising from the merger of Orient Finance PLC with Bartleet Finance PLC. The asset base of the group grew to Rs. 57 billion. Janashakthi PLC reported a total income of Rs. 146 Mn for the nine months ended 31 December 2016,compared to 227 Mn in the corresponding period of the previous year. PERFORMANCE OF SUBSIDIARIES JANASHAKTHI INSURANCE PLC The company s main subsidiary, Janashakthi Insurance PLC reported a consolidated Profit After Tax of Rs. 789 Mn when compared to Rs. 353 million in the previous year. At 30 September 2016, the group had an asset base of Rs. 35 billion with a market capitalization of Rs. 9.6 billion. Following the successful amalgamation of AIA General with Janashakthi General,reporting structures and branches have been rationalized to reflect the merged entity. The acquisition has strengthened the company and positions the company better as a principal player in the increasingly competitive General Insurance industry. ORIENT FINANCE PLC The company recorded a total income of Rs. 2,419 million for the nine months ended 31 December 2016 when compared to Rs. 1,591 million in the previous year. This represents an increase of 52% year on year. The company made a profit after tax of Rs.180 million for the nine months ended 31 December The company has an asset base of Rs billion with a market capitalization of Rs. 1.9 billion. ORIENT CAPITAL LIMITED Orient Capital Ltd, a subsidiary of Janashakthi Capital Ltd, which company is owned by Janashakthi PLC disclosed an income of Rs. 1.6 million in the current period when compared to Rs. 887 million income in the previous year which was a non recurring profit arising from the amalgamation of Orient Finance PLC and Bartleet Finance PLC,the company recorded a loss of Rs. 73 million compared to a profit of Rs. 884 Mn in the previous year. It's future options are being examined. FUTURE PROSPECTS The two main subsidiaries have completed amalgamation in the last financial year and are gearing for growth after consolidation. The steps initiated to reduce overall gearing levels which we referred to in the last quarter is progressing and shareholder approvals will be sought if when required. The mismatch between assets and liabilities is being addressed as part of this restructuring exercise and it is expected that this would be within lower levels in the first quarter of next financial year. Sgd Ramesh Schaffter Chief Executive Officer 21 February

3 STATEMENT OF FINANCIAL POSITION Group Company Unaudited Audited Unaudited Audited As at 31/12/ /03/ /12/ /03/2016 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Assets Financial Assets 22,806,516 23,832, , ,340 Investment Properties 187, , , ,000 Investments in Subsidiaries 6,703,415 6,703,415 Real Estate Stocks 37,418 46,408 Property, Plant & Equipment 3,017,644 2,452,387 6,584 10,474 Intangible Assets Goodwill on Acquisition 3,432,087 3,432,087 Brand 235, ,880 Intangible Assets Others 35,258 38,086 Loans and Receivables from Customers 16,112,331 13,839,302 Policyholder and Other Loans 272, ,667 Reinsurance Receivable 4,032, ,619 Premium Receivable 2,203,147 2,380,957 Other Assets 1,963,456 1,529, , ,861 Other Fund Assets 51,471 47,815 Deferred Tax Asset 419, ,922 Deferred Acquisition Cost 1,318,005 1,328,397 Cash & Bank Balances 1,618, ,355 81,414 15,275 Total Assets 57,743,915 51,896,033 8,321,134 8,752,364 Liabilities and Shareholders' Equity Liabilities Insurance Provision Life 9,887,405 8,865,740 Insurance Provision Non Life 10,809,611 9,036,636 Retirement Benefit Obligations 348, ,072 2,992 2,992 Other Fund Liabilities 51,471 47,815 Deferred Revenue 215, ,728 Deposits from Customers 9,008,129 9,249,313 Interest Bearing Borrowings 13,726,427 11,322,843 6,443,941 6,100,966 Debentures 1,981,222 2,133,788 1,091,685 1,026,875 Non Interest Bearing Security Margins 1,509 1,891 Other Liabilities 5,322,288 4,117,296 88,784 91,756 51,352,703 45,341,122 7,627,402 7,222,589 Shareholders' Equity Stated Capital 100, , , ,000 Revaluation Reserve 91, ,782 Reserve Fund for Future Appropriation 75,920 Reserve Fund 141, ,006 Available for Sale Reserve (543,211) (322,565) Retained Earnings 4,571,349 4,752, ,730 1,429,774 4,436,861 4,754, ,730 1,529,774 Non Controlling Interest 1,954,351 1,800,241 6,391,212 6,554, ,730 1,529,774 Total Equity & Liabilities 57,743,915 51,896,033 8,321,134 8,752,364 I certify that these Interim Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 07 of Sgd.. Arshad Hassanali Finance Officer The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Approved and signed for and on behalf of the Board by, Sgd. Ramesh Schaffter Director / CEO Sgd. Prakash Schaffter Director February 21, 2017 Colombo 2

4 INCOME STATEMENT For the 09 months ended 31 December, Group Company Unaudited Unaudited Variance Unaudited Unaudited Variance % % Rs. '000 Rs. '000 Rs. '000 Rs. '000 Income 12,922,668 9,941, % 146, , % Gross Written Premium 9,832,043 7,351, % Less: Premium Ceded to Reinsures (1,575,337) (844,689) 86.50% Net Written Premium 8,256,706 6,506, % Net Change in Reserve for Unearned Premium 372,138 (255,932) % Net Earned Premium 8,628,844 6,250, % Benefits and Losses Insurance Claims and Benefits (Net) (4,954,697) (3,624,886) 36.69% Underwriting & Net Acquisition Costs (1,464,610) (1,239,024) 18.21% Increase in Life Insurance Fund (1,125,616) (803,196) 40.14% Underwriting Results 1,083, , % Interest Income 2,198,314 1,787, % Interest Expense 1,327, , % Net Interest Income 870, , % Other Operating Income 2,095,510 1,900, % 146, , % Other Operating, Investment Related and Administrative Expenses (2,611,556) (2,227,849) 17.22% (53,515) (57,432) 6.82% Loan Writen back 3, % Impairment (Charges) / Reversals of Loans and Receivables from Customers (241,816) (298,144) 18.89% Profit/ ( Loss) from Operations 1,197, , % 92, , % Profit on Disposal of Subsidiary 524, % Finance Cost (677,128) (484,522) 39.75% (650,451) (464,537) 40.02% Profit / (Loss) from Ordinary Activities before Tax 519, , % (557,692) (294,493) 89.37% Value Added Taxation on Financial Services (45,625) (4,830) % 474, , % (557,692) (294,493) 89.37% Corporate Taxation (139,536) 236, % (3,352) (8,476) 60.45% Net Profit/(Loss) for the Period 334,727 1,128, % (561,044) (302,969) 85.18% Equity Holders of the Parent 126,297 1,012, % (561,044) (302,969) 85.18% Non Controlling Interest 208, , % 334,727 1,128, % (561,044) (302,969) 85.18% Earnings per Share (Rs.) Basic Earnings/(Loss) Per Share (56.10) (30.30) 3

5 STATEMENT OF COMPREHENSIVE INCOME For the 09 months ended 31 December, Group Company Unaudited Unaudited Variance Unaudited Unaudited Variance % % Rs. '000 Rs. '000 Rs. '000 Rs. '000 Profit for the Period 334,727 1,128, % (561,044) (302,969) 85.18% Other Comprehensive Income Change in Revaluation Surplus (32,112) 100% Net Gain / (Loss) on Available for Sale Financial Assets (291,313) (200,773) 45.10% Other Comprehensive Income for the period (323,425) (200,773) 61.09% Total Comprehensive Income for the period 11, , % (561,044) (302,969) 85.18% Attributable to : Equity Holders of the Parent (118,729) 869, % (561,044) (302,969) 85.18% Non Controlling Interest 130,031 57, % 11, , % (561,044) (302,969) 85.18% 4

6 INCOME STATEMENT For the quarter ended 31 December, Group Company Unaudited Unaudited Variance Unaudited Unaudited Variance % % Rs. '000 Rs. '000 Rs. '000 Rs. '000 Income 4,263,642 3,393, % (90,463) (59,294) 52.57% Gross Written Premium 3,324,614 2,480, % Less: Premium Ceded to Reinsures (522,417) (229,900) % Net Written Premium 2,802,197 2,250, % Net Change in Reserve for Unearned Premium 46,805 (111,725) % Net Earned Premium 2,849,002 2,138, % Benefits and Losses Insurance Claims and Benefits (Net) (1,730,826) (1,334,217) 29.73% Underwriting & Net Acquisition Costs (502,145) (426,707) 17.68% Increase in Life Insurance Fund (434,910) (255,620) 70.14% Underwriting Results 181, , % Interest Income 785, , % Interest Expense 505, , % Net Interest Income 279, , % Other Operating Income 629, , % (90,463) (59,294) 52.57% Other Operating, Investment Related and Administrative Expenses (876,683) (782,744) 12.00% (21,433) (17,367) 23.41% Impairment (Charges) / Reversals of Loans and Receivables from Customers (82,432) (97,642) 15.58% Profit/ ( Loss) from Operations 131, , % (111,896) (76,661) 45.96% Finance Cost (245,028) (181,186) 35.24% (235,025) (176,534) 33.13% Profit / (Loss) from Ordinary Activities before Tax (113,886) 4, % (346,921) (253,195) 37.02% Value Added Taxation on Financial Services (17,939) % (131,825) 4, % (346,921) (253,195) 37.02% Corporate Taxation (31,788) (8,261) % (1,197) (2,544) 52.95% Net Profit/(Loss) for the Quarter (163,613) (3,755) % (348,118) (255,739) 36.12% Equity Holders of the Parent (207,033) (44,737) % (348,118) (255,739) 36.12% Non Controlling Interest 43,420 40, % (163,613) (3,755) % (348,118) (255,739) 36.12% Earnings per Share (Rs.) Basic Earnings/(Loss) Per Share (Rs.) (20.70) (4.47) (34.81) (25.57) 5

7 STATEMENT OF COMPREHENSIVE INCOME For the quarter ended 31 December, Group Company Unaudited Unaudited Variance Unaudited Unaudited Variance % % Rs. '000 Rs. '000 Rs. '000 Rs. '000 Profit for the Quarter (163,613) (3,755) % (348,118) (255,739) 36.12% Other Comprehensive Income Change in Revaluation Surplus (32,112) 100% Net Gain / (Loss) on Available for Sale Financial Assets 252,206 (200,791) % Other Comprehensive Income for the quarter 220,094 (200,791) % Total Comprehensive Income for the quarter 56,481 (204,546) % (348,118) (255,739) 36.12% Attributable to : Equity Holders of the Parent (40,060) (187,218) 78.60% (348,118) (255,739) 36.12% Non Controlling Interest 96,541 (17,328) % 56,481 (204,546) % (348,118) (255,739) 36.12% 6

8 STATEMENT OF CHANGES IN EQUITY For the Nine months ended 31 December 2016 Attributable to equity holders of the parent Group Stated Capital Reserve Fund Revaluation Reserve Fund for Future Appropriation Available for Sale Reserve Retained Earnings Non Controlling Interest Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Total Balance As At 01 April 2015 (Restated) 100,000 12,644 (4) 3,137,216 1,905,063 5,154,918 Net Profit for the 09 months ended 31 December ,012, ,978 1,128,296 Changes in Fair Value of AFS assets (142,452) (58,321) (200,773) Transferred during the period 1,249 (1,249) Transfers to Retained Earnings (13,893) 13,893 AFS reserve transferred to R/E on disposal of Subsidiary 24 (24) Changes in NCI on disposal of Subsidiary (329,525) (329,525) Share Issue by Subsidiary 478, ,072 Stamp Duty on Right issue (12,746) (4,043) (16,789) Changes in NCI on issue of shares by Subsidiary 705,507 (705,507) Dividend (30,000) (30,000) Balance as at 31 December 2015 (Restated) 100,000 (142,432) 4,824,915 1,401,717 6,184,199 Net Profit for the 03 months ended 31 March , , ,484 Changes in Fair Value of AFS assets (180,133) (67,361) (247,494) Actuarial losses on Defined Benefit Plans Aggregate Tax Effect on items recognized in OCI 27,478 (9,995) 11,684 (4,193) 39,162 (14,188) Revaluation surplus 115,782 46, ,158 Transferred during the period 109,006 (109,006) Transfer to Life Insurance Fund (4,427) (1,404) (5,831) Share Issue by Subsidiary 225, ,606 Transaction cost relating to IPO of Subsidiary (4,345) (493) (4,838) Effect on Change in Holding in Subsidiaries (109,423) 109,423 Share Buyback by Subsidiaries (4) (4) Dividends (98,344) (98,344) Audited Balance As At 31 March , , ,782 (322,565) 4,752,446 1,800,241 6,554,910 Net Profit for the 09 months ended 31 December , , ,727 Changes in Fair Value of AFS assets (220,646) (70,667) (291,313) Changes in Revaluation Reserve (24,379) (7,733) (32,112) Reserve for Future Appropriation 75,920 24, ,000 Transfer to Statutory Reserve 32,394 (32,394) Dividends (275,000) (275,000) Balance As At 31 December , ,400 91,403 75,920 (543,211) 4,571,349 1,954,351 6,391,212 7

9 STATEMENT OF CHANGES IN EQUITY For the Nine months ended 31 December 2016 Company Stated Capital Retained Earnings Total Rs. '000 Rs. '000 Rs. '000 Balance As At 01 April , , ,071 Net Profit/(Loss) for the 09 months ended 31 December 2015 (302,969) (302,969) Dividend (30,000) (30,000) Balance As At 31 December , , ,102 Net Profit for the 03 months ended 31 March , ,672 Audited Balance As At 31 March ,000 1,429,774 1,529,774 Net Profit/(Loss) for the 09 months ended 31 December 2016 (561,044) (561,044) Dividends (275,000) (275,000) Balance As At 31 December , , ,730 8

10 STATEMENT OF CASH FLOW Group Company Unaudited Unaudited Unaudited Unaudited For 09 months ended 31 December Rs. '000 Rs. '000 Rs. '000 Rs. '000 Cash Flow from/ (used) in Operating Activities Profit / (Loss) before Income Tax Expenses 474, ,394 (557,692) (294,493) Adjustments for Finance Cost 2,004,485 1,376, , ,537 Depreciation & Amortization 119, ,176 3,890 3,640 Provision for Impairment 75,000 Provision for Bad Debts 17,783 15,081 (Profit) / Loss on Disposal of Property, Plant & Equipment (13,651) (27,109) (Profit) / Loss on Disposal of Investment property (16,410) Gain on disposal of shares (22,850) (51,449) (22,850) Net Foreign Exchange (Gain) / Loss 1,736 1,001 Loan Written back (3,500) Fair Value (Gains) / Losses on Financial Assets (68,833) (353,038) (93,731) (122,519) Impairment Charges / (Reversals) of Loans and Receivables from Customers 241, ,145 (Profit)/ Loss on Disposal of Subsidiary (524,032) Investment Income (83,097) (62,730) Gratuity Provision 52,588 47,821 Operating Profit/(Loss) before Working Capital Changes 2,798,895 1,701,887 (19,932) 51,165 (Increase) / Decrease in Loans and Receivables to Customers (2,514,844) (2,886,220) (Increase) / Decrease in Policyholder and Other Loans (3,677,174) (253,349) (Increase) / Decrease in Other Assets 234,176 (23,283) 548,728 (4,968) Increase / (Decrease) in Deposits from Customers (189,403) (503,367) Increase / (Decrease) in Other Liabilities 1,134,738 1,594,764 (501) (132,045) Increase / (Decrease) in Life Insurance Fund 1,021, ,729 Provision for Future Appropriation 100,000 Increase / (Decrease) in non Life Insurance Fund 1,772, ,005 Cash Generated from Operations 681,030 1,177, ,295 (85,848) Gratuity Paid (39,410) (48,057) Income Tax Paid (5,823) (13,976) (5,823) (2,879) Notional Tax paid (1,513) (5,021) (1,513) (4,836) Finance Costs Paid (2,040,331) (1,381,477) (650,451) (464,537) Net Cash Flow from Operating Activities (1,406,047) (271,365) (129,492) (558,100) Cash Flows from / (used in) Investing Activities Acquisition of Property, Plant & Equipment (669,770) (270,637) (2,200) Proceeds from disposal of Property, Plant & Equipment 18,516 70,527 Proceeds on disposal of Investment property 124,410 Investment in Subsidiary (2,879,846) Net Proceeds on disposal of subsidiary 133,767 Income on investments 83,097 60,991 Net drawdown of Investments 999,843 (3,701,917) 221, ,811 Acquisition of Intangible Assets (17,182) (16,438) Net Cash (used in) / generated from Investing Activities 414,504 (3,599,297) 221,695 (1,996,235) Cash Flows from / (used in) Financing Activities Net Proceeds from Interest Bearing Loans & Borrowings 1,741,767 3,337, ,416 2,319,569 Proceeds from Right Issue 477,906 Payment to shareholders of former Orient Finance PLC (605,746) Settlement of Debentures (204,000) Dividend (275,000) (33,500) (275,000) (30,000) Dividend paid to non controlling interest (98,344) Net Cash (used in) / generated from Financing Activities 1,164,423 3,176, ,416 2,289,569 Net Increase / (Decrease) in Cash and Cash Equivalents 172,880 (694,087) 214,619 (264,766) Cash and Cash Equivalents at the beginning of the year 2,801,371 5,563,427 91, ,525 Cash and Cash Equivalents at the end of the year 2,974,251 4,869, , ,759 Analysis of Cash and Cash Equivalents Favourable Balances Cash & Bank Balances 1,618,366 4,289,251 81,414 10,500 Short Term Investments 2,869,515 2,090, , ,316 Unfavourable Cash and Cash Equivalents balance Bank Overdrafts (1,513,630) (1,510,610) (16,263) (69,057) Total Cash and Cash Equivalents 2,974,251 4,869, , ,759 9

11 NOTES TO THE FINANCIAL STATEMENTS Financial Reporting By Segments Non Life Insurance Life Insurance Lease & Hire Purchase Factoring Investment Unallocated Total For the 09 months ended 31 December Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Net Earned Premium 6,564,316 4,478,926 2,064,528 1,771,467 8,628,844 6,250,393 Interest Income 2,029,342 1,679, , ,306 2,355 1,408 2,198,314 1,785,508 Investment Income Fee & Commission Income Other Operating Income 941, , , ,387 81,630 38,125 34,927 27, , , , ,225 2,095,510 2,429,970 Total Segmental Income 7,505,717 5,257,500 2,849,900 2,431,854 2,110,972 1,717, , , , , , ,633 12,922,668 10,465,871 Interest Expenses (1,219,528) (828,913) (104,791) (62,276) (3,037) (834) (1,327,357) (892,023) Segmental Results 7,505,717 5,257,500 2,849,900 2,431, , ,006 96,752 69, , , , ,799 11,595,311 9,573,848 Insurance Claims and Benefits (Net) (4,161,600) (3,001,650) (793,097) (623,236) (4,954,697) (3,624,886) Underwriting & Net Acquisition Costs (949,550) (701,853) (515,060) (537,170) (1,464,610) (1,239,024) Increase in Life Insurance Fund (1,125,616) (803,196) (1,125,616) (803,196) Depreciation & Amortization (91,749) (3,435) (74,210) (16,811) (17,197) (720) (1,834) (10,374) (13,500) (119,654) (110,176) Other Operating Expenses (1,372,345) (1,153,638) (425,159) (383,863) (306,391) (501,830) (24,158) (41,387) (409,472) (41,787) (2,537,527) (2,122,506) Impairment Charge/(Reversal) (229,488) (216,334) (11,473) (8,086) (856) (73,724) (241,816) (298,144) Transfer to NIC Policyholders' Fund Deficit Finance Cost (24,801) (1,876) (19,977) (650,451) (464,545) (677,128) (484,522) Profit / (Loss) from Ordinary Activities before Tax 905, ,924 (10,908) (9,798) 338, ,645 60,401 18, , ,068 (967,627) (472,757) 474, ,394 Corporate Taxation (105,508) (34,512) (34,028) 271,414 (139,536) 236,902 Net Profit/(Loss) for the Period 800, ,412 (10,908) (9,798) 338, ,645 60,401 18, , ,068 (1,001,655) (201,343) 334,727 1,128,296 Non Life Insurance Life Insurance Lease & Hire Purchase Factoring Investment Unallocated Total 31/12/ /03/ /12/ /03/ /12/ /03/ /12/ /03/ /12/ /03/ /12/ /03/ /12/ /03/2016 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Segmental Assets 22,504,592 17,781,977 12,805,263 13,815,770 14,803,439 12,650,993 1,272,026 1,181,471 2,462,499 2,497,915 3,896,096 3,967,907 57,743,915 51,896,033 Segmental Liabilities 14,690,996 11,902,817 12,230,246 11,659, , ,272 7,535,626 7,141,200 16,083,721 14,163,454 51,352,703 45,341,122 10

12 NOTES TO THE FINANCIAL STATEMENTS Nine months Ended 31 December Corporate Information Domicile and Legal Form Janashakthi PLC is a limited liability company incorporated and domiciled in Sri Lanka. The registered office of the Company is located at 02 Deal Place, Colombo 03, and the principle place of business is located at 55 / 72, Vauxhall Lane, Colombo 2. Principle Activities and Nature of Operations The principle activities of the Company and each of its subsidiaries are as follows. Janashakthi PLC Investing in subsidiaries and providing related services. Janashakthi Insurance PLC Undertaking and carry out all classes of Life Insurance and Non Life Insurance business through it's subsidiary Janashakthi General Insurance Limited, Insurance related services and Investments. Janashakthi Capital Ltd Investing in subsidiaries and providing related services. Orient Capital Ltd which is an investment company is a subsidiary of Janashakthi Capital Ltd. Orient Finance PLC (Formerly known as Bartleet Finance PLC) which is a Finance and Leasing company approved under Finance Leasing Act No. 56 of Basis of Preparation The Interim Financial Statements have been prepared in accordance with the Sri Lanka Accounting Standards LKAS 34 Interim Financial Reporting. These Interim Financial Statements should be read in conjunction with the Annual Financial Statements for the year ended 31 March The Interim Financial Statements were approved by Board of Directors on 21 February Figures in these Interim Financial Statements for nine months ended 31 December 2016 are provisional and subject to audit. Basis of Measurement The consolidated financial statements have been prepared on a historical cost basis, except land and building at the revalued amount, investment properties, financial assets and financial liabilities at fair value through profit / loss and available for sale financial assets that have been measured at fair value. These Financial Statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand (LKR 000) unless otherwise indicated. Basis of Consolidation The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 31 December Financial Statements for the 09 months ended 30 September 2016 of Janashakthi Insurance PLC are considered for the purpose of consolidation as the reporting date is different. Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. The Group accounts comprise, the consolidation of accounts of Janashakthi PLC as at 31 December 2016 which are given below: Subsidiary Percentage Holdings Janashakthi Insurance PLC 75.92% Janashakthi Capital Ltd 100% Orient Finance PLC (Formerly known as Bartleet Finance PLC) 89.81% 3 Change of Name Janashakthi Limited changed it's name to Janashakthi PLC on 29 January Assigning of Leasehold Rights of premises No. 24, Staple Street Colombo 02 Janashakthi Insurance PLC Janashakthi Insurance PLC entered into an Agreement with Sanken Construction (Pvt) Ltd (Purchaser) in October 2015 to assign the leasehold rights of the property at No. 24, Staples Street,Colombo 02. Approval for this transaction has been received from the Urban Development Authority (UDA) and the Cabinet of Ministers. The transfer of leasing rights will now be subject to additional fees levied by the UDA and as a result profit on conclusion of this transaction is now estimated at Rs. 361 Million. The Company received an advance of Rs Mn on 21 December A further advance of Rs Bn was received on 23 September The balance payable as at the balance sheet date was Rs Mn 11

13 NOTES TO THE FINANCIAL STATEMENTS Nine months Ended 31 December Contingent Liabilities There are no significant changes in the nature of the Contingent Liabilities which were disclosed in the Audited Financial Statements for the year ended 31 st March Contingent Assets The Group has no contingent assets as at the reporting date. 7 Events after the Reporting Date Issue of Preference Shares Orient Finance PLC Orient Finance PLC,subsidiary of the company issued preference shares in February The company subscribed for it's full entitlement which is Rs Mn. The company also subscribed for additional preference shares amounting to Rs Mn. 8 Non Financial Information 31/12/ /03/2016 Net Assets Value per Share Group (Rs) Company (Rs) Shareholders As At 31 December 2016 Name of Shareholder No. of Shares % Mr. P.A.Schaffter 4,999, Mr. R.Schaffter 4,999, Mr. C.T.A.Schaffter Mrs. L.S.Schaffter Mrs. E.A.M.S.Schaffter Mrs. E.S.Schaffter Total 10,000, Directors' Shareholdings As At 31 December 2016 Name of Director No. of Shares Mr. P.A.Schaffter 4,999,998 Mr. R.Schaffter 4,999,998 Mr. C.T.A.Schaffter 1 11 Board of Directors Mr. R.Schaffter Director / CEO Mr. P.A.Schaffter Director Mr. C.T.A.Schaffter Director Mr. A.D.E.I.Perera Independent Non Executive Director Mr. Mohan Dias Independent Non Executive Director 9,999, Stock Exchange Listing The Debentures of the Company are listed on the Main Board of the Colombo Stock Exchange of Sri Lanka. 13 Secretary to the Company K H L Corporate Services Limited No. 15, Walukarama Road, Colombo External Auditors M/s Hulugalle Samarasinghe & Co No. 267/19, Galle Road, Colombo

14 INFORMATION ON DEBENTURES Market Value of Listed Debentures For the 09 Months Ended 31Dec16 31Dec15 Highest (Rs.) Lowest (Rs.) Last Traded (Rs.) Yield to Maturity as at date of last trade 13.74% 10.74% Interest Yield as at date of last trade 14.00% 10.75% Interest Rate Coupon Rate Effective Rate 05 Year Fixed 10.75% 10.75% As At 31Dec16 As At 31Dec15 Interest Rates of Comparable Government Securities 11.71% 7.33% Other Ratios Company As At As At 31Dec16 31Dec15 Debt to Equity Ratio (%) Interest Cover (Times) Quick Asset Ratio (Times)