INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

Transcription

1 INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

2 STATEMENT OF PROFIT OR LOSS For the year ended For the three months ended Change Change % % Note (Unaudited) (Unaudited) Revenue 6 4,791,413,814 4,250,108, ,250,868,916 1,123,015, Gross written premium 7 4,781,919,014 4,339,579, ,242,778,391 1,128,166, Net change in reserve for unearned insurance premium (255,511,825) (284,749,349) (10) (62,776,703) (61,973,933) 1 Gross earned premium 4,526,407,189 4,054,830, ,180,001,688 1,066,192, Premium ceded to reinsurers (427,744,495) (350,721,288) 22 (62,460,599) (48,203,597) 30 Net change in reserve for unearned reinsurance premium (1,480,259) 19,123,881 (108) (37,070,109) (22,764,296) 63 Net earned premium 4,097,182,435 3,723,232, ,080,470, ,224,368 9 Claims and expenses Net claims (2,840,950,188) (2,628,295,063) 8 (698,446,797) (664,831,508) 5 Underwriting and net acquisition costs (407,022,478) (380,484,389) 7 (107,359,336) (99,387,482) 8 Other operating and administrative expenses (676,749,665) (508,318,624) 33 (232,743,222) (135,343,571) 72 Total claims and expenses (3,924,722,331) (3,517,098,076) 12 (1,038,549,355) (899,562,561) 15 Underwriting results 172,460, ,134,837 (16) 41,921,625 95,661,807 (56) Other revenue Fee income 41,804,663 39,778, ,253,373 9,756, Interest and dividend income 8 625,649, ,954, ,973, ,079, Net fair value gains/(losses) 24,646,592 11,024, (5,137,651) (9,841,472) (48) Other income 2,130,821 1,118, ,511 (5,203,343) (106) Total other revenue 694,231, ,875, ,397, ,790, Profit before tax 866,691, ,010, ,319, ,452,583 (5) Income tax expense 9 (93,606,037) (75,012,884) 25 (27,761,121) (18,184,233) 53 Profit for the period 773,085, ,997, ,558, ,268,350 (10) Basic earnings per share (10) The notes to the financial statements form an integral part of these interim condensed financial statements.

3 STATEMENT OF COMPREHENSIVE INCOME Change Change % % (Unaudited) (Unaudited) Profit for the period 773,085, ,997, ,558, ,268,350 (10) Other comprehensive income Other comprehensive income that may be reclassified to statement of income in subsequent periods: For the year ended For the three months ended Net change in fair value of available-for-sale financial assets 1,857,814 (8,116,758) 123 4,829,827 (5,048,100) 196 Recycling to statement of profit or loss due to disposal of investments 4,846, Deferred tax effect on above (260,094) 539,536 (148) (260,094) (550,583) 53 6,444,368 (7,577,222) 185 4,569,733 (5,598,683) (182) Other comprehensive income not to be reclassified to statement of profit or loss in subsequent periods: Actuarial lossess on defined benefit plans (1,369,127) (2,718,395) 50 (1,369,127) (2,718,395) 50 Deferred tax effect on above (377,795) 761,150 (150) 377, ,150 (50) (1,746,922) (1,957,245) 11 (991,332) (1,957,245) 49 Other comprehensive income for the period, net of tax 4,697,446 (9,534,467) 149 3,578,402 (7,555,928) 147 Total comprehensive income for the period, net of tax 777,782, ,462, ,136, ,712,422 (5)

4 STATEMENT OF FINANCIAL POSITION Note Assets Intangible assets 11,000,000 23,388,110 Property, plant and equipment 84,392,671 21,388,037 Deferred tax assets 28,484 1,871,693 Financial investments 11 6,136,594,446 5,469,881,112 Reinsurance receivables 249,714, ,504,736 Insurance receivables 838,919, ,191,001 Deferred expenses 238,256, ,580,020 Other assets 69,549,058 16,003,150 Cash and cash equivalents 116,659, ,335,984 Total assets 7,745,114,649 6,720,143,843 Equity and liabilities Equity Stated capital 1,350,000,000 1,350,000,000 Retained earnings 1,710,724,129 1,287,638,683 Available-for-sale and other reserves (3,484,303) (8,181,749) Total equity 3,057,239,826 2,629,456,934 Liabilities Insurance contract liabilities 12 4,073,554,521 3,557,794,382 Employee defined benefit obligations 17,881,854 12,920,220 Other financial liabilities 408,960, ,362,131 Other liabilities 44,495,102 36,973,162 Reinsurance payables 35,715,836 41,432,353 Income tax payables 38,429,964 21,960,225 Bank overdraft 68,837,192 74,244,436 Total liabilities 4,687,874,823 4,090,686,909 Total equity and liabilities 7,745,114,649 6,720,143,843 The notes to the financial statements form an integral part of these interim condensed financial statements. These interim condensed financial statements are in compliance with requirements of the Companies Act No. 07 of (Sgd.) Nilushan Somarathna Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of these interim condensed financial statements. Signed for and on behalf of the Board by; (Sgd.) Jehan P. Amaratunga Chairman (Sgd.) N. Vasantha Kumar Director 15 February 2018 Colombo

5 STATEMENT OF CHANGES IN EQUITY Stated capital Retained earnings Availablefor-sale reserves Other reserves Total Rs. Balance as at 1 January ,350,000, ,641,415 1,952,501 (599,783) 2,250,994,133 Issue of ordinary shares pending allotment (750,000,000) (750,000,000) Ordinary shares alloted 750,000, ,000,000 Profit for the period (unaudited) - 657,997, ,997,268 Other comprehensive income - - (7,577,222) (1,957,245) (9,534,467) Interim dividend for (270,000,000) - - (270,000,000) Audited balance as at 31 December ,350,000,000 1,287,638,683 (5,624,721) (2,557,028) 2,629,456,934 Profit for the period (unaudited) - 773,085, ,085,446 Other comprehensive income - - 6,444,368 (1,746,922) 4,697,446 Second interim dividend for (150,000,000) - - (150,000,000) Final dividend for (50,000,000) - - (50,000,000) Interim dividend for (150,000,000) (150,000,000) Unaudited balance as at 31 December ,350,000,000 1,710,724, ,647 (4,303,950) 3,057,239,826 The notes to the financial statements form an integral part of these interim condensed financial statements.

6 STATEMENT OF CASH FLOWS For the Year ended Note Operating activities Premium received from customers 4,662,121,344 4,158,370,004 Reinsurance premium paid (433,312,281) (346,109,125) Claims paid (2,811,720,982) (2,581,898,150) Reinsurance receipts in respect of claims 48,402, ,662,006 Interest received 605,797, ,260,353 Dividends received 19,851,866 13,773,917 Other operating cash flows (962,779,546) (1,501,323,447) Cash flows from operating activities A 1,128,360, ,735,558 Gratuity paid (1,804,195) (61,175) Income tax paid (24,226,000) (92,634,139) Net cash flows from operating activities 1,102,330, ,040,244 Investing activities Purchase of liquid investments (20,586,085,223) (14,659,950,205) Purchase of other investments (3,369,750,685) (7,958,602,878) Sale of liquid investments 20,293,612,086 16,056,024,326 Sale of other investments 2,961,838,013 6,008,513,057 Purchase of property, plant and equipment (69,382,534) (8,872,288) Sale proceed from disposal of property, plant and equipment 1,169,018 - Net cash flows used in investing activities (768,599,326) (562,887,988) Net cash flows before financing activities 333,730,902 (369,847,744) Financing activities Ordinary dividends paid (350,000,000) (270,000,000) Net cash flow used in financing activities (350,000,000) (270,000,000) Net increase in cash and cash equivalents B (16,269,098) (639,847,744) Notes to the statement of cash flows A. Cash flows generated from operating activities Profit before tax 866,691, ,010,152 Unrealised gain/(loss) on quoted equities at market value 40,462,471 5,575,599 Provision for retirement benefit obligations 5,396,702 4,235,485 Depreciation and amortisation expenses 27,494,102 21,860,494 Provision - Insurance receivables 5,056,341 4,255,958 Profit from disposal of property plant & equipment (762,017) - Changes in working capital (Increase)/decrease in reinsurance assets (145,209,785) (9,597,248) (Increase)/decrease in insurance receivables and other assets (225,120,800) (128,133,238) (Increase)/decrease in deferred expenses (17,676,766) (19,752,425) Increase/(decrease) in insurance liabilities 515,760, ,177,866 Increase/(decrease) in other liabilities 56,268,553 (716,897,055) Cash flow from operating activities 1,128,360, ,735,588 B. Increase/decrease in cash and cash equivalents Cash in hand and balance at bank 116,659, ,335,984 Bank overdrafts (68,837,192) (74,244,436) Net cash and cash equivalents at the end of the period 47,822,450 64,091,548 Less: Net cash and cash equivalents at the beginning of the period 64,091, ,939,292 Net increase/(decrease) in cash and cash equivalents during the period (16,269,098) (639,847,744)

7 NOTES TO THE FINANCIAL STATEMENTS 1. Reporting entity People's Insurance PLC is a public limited liability company incorporated and domiciled in Sri Lanka. The registered office of the Company and the principal place of business is situated at No. 07, Havelock Road, Colombo 05. The Company's parent entity is People's Leasing& Finance PLC. The Company's ultimate parent undertaking and controlling entity is People's Bank which is owned by the Government of Sri Lanka. Ordinary shares of the Company are listed on the Colombo Stock Exchange. 2. Audit of financial statements The interim condensed financial statements for the twelve months ended 31 December 2017 are provisional and unaudited. 3. Approval of financial statements These interim condensed financial statements were authorised for issue by the Board of Directors on 15 February Basis of preparation The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard(LKAS) 34- Interim Financial Reporting. These interim financial statements should be read in conjunction with the annual financial statements fortheyearended31december2016.further,provisionsofthecompaniesactno.7of2007havebeenconsideredinpreparing the interim condensed financial statements of the Company. The same accounting policies have been followed in preparation of these interim condensed financial statements as stated in the audited financial statements. 5. Comparative information Comparative information has been restated where necessary to ensure comparability with the current year information. 6. Revenue For the year ended For the three months ended (Unaudited) (Unaudited) Net earned premium 4,097,182,435 3,723,232,913 1,080,470, ,224,368 Other revenue 694,231, ,875, ,397, ,790,778 4,791,413,814 4,250,108,228 1,250,868,916 1,123,015, Gross written premium Premium income by major class of business is as follows; For the year ended For the three months ended (Unaudited) (Unaudited) Motor 4,009,005,156 3,655,047,068 1,123,857,901 1,018,171,309 Fire 368,877, ,163,951 67,187,944 52,733,189 Marine 16,332,018 18,237,106 3,445,818 8,848,217 Miscellaneous 387,704, ,131,544 48,286,728 48,413,479 4,781,919,014 4,339,579,669 1,242,778,391 1,128,166, Interest and dividend income For the year ended For the three months ended (Unaudited) (Unaudited) Interest income 605,797, ,180, ,728, ,128,863 Dividend income 19,851,866 13,773,917 1,245, , ,649, ,954, ,973, ,079,547

8 NOTES TO THE FINANCIAL STATEMENTS 9. Income tax expense According to the Inland Revenue Act No. 10 of 2006 and subsequent amendments thereto, any company which is liable to pay income taxattherateof28%listsitssharesonthecolombostockexchange(cse)bywayofaminimuminitialpublicoffering(ipo) throughwhichnotlessthan20%ofitssharesisissuedtothegeneralpubliconorbefore1april2017,theincometaxratewillbe reducedby50%fortheyearofassessmentinwhichthesuchsharesarelistedandforanothertwoyearsofassessment,providedthat such company after listing continues to maintain a minimum public float of 20%. Accordingly,25%ofthesharesoftheCompanywereofferedandissuedtothegeneralpublicbywayofanIPOinDecember2015 andsharesofthecompanywerelistedonthecseinjanuary2016.asat31december2017,thepublicfloatofthecompany s shareswasabove20%whilethecompanywasliableforincometaxat28%(beforethetaxreduction).hence,thecompanywas consideredeligibleforthe50%taxreductionasperthesaidact,duringthereportingperiodandincometaxwascalculatedat14% ( %). 10. Basic earnings per share (EPS) Basic earnings per share is calculated by dividing the net profit after tax for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. For the year ended For the three months ended (Unaudited) (Unaudited) Profit for the period (Rs.) 773,085, ,997, ,558, ,268,350 Weighted average number of shares 200,000, ,000, ,000, ,000,000 Basic earnings per share (Rs.) Financial investments Carrying value Fair value Fair value through profit or loss Loans and receivables Available-for-sale 135,561, ,269, ,561, ,269,438 5,140,019,075 3,695,529,206 5,058,667,506 3,518,865, ,014,122 1,447,082, ,014,122 1,447,082,468 6,136,594,446 5,469,881,112 6,055,242,877 5,293,217, Insurance contract liabilities Provision for net unearned premium 2,473,712,187 2,216,720,105 Provision for gross outstanding claims 948,670, ,970,538 Provision for gross incurred but not reported (IBNR) claims 651,172, ,103,739 4,073,554,521 3,557,794, Actuarial valuation of claim liabilities Consultant actuaries of the Company have carried out an actuarial valuation of claim liabilities as at 31 December According to the said actuarial valuation, the Company had adequate provisions in the financial statements Liability adequacy test The liability adequacy test (LAT) performed by consultant actuaries for the balance as at 31 December 2017 concluded that the liability value is sufficient to meet future claims and expenses. Hence, no provision was made for premium deficiency.

9 NOTES TO THE FINANCIAL STATEMENTS 13. Related party transactions The Company carries out transactions in the ordinary course of business with parties who are defined as related parties in Sri Lanka Accounting Standard (LKAS) 24 - Related Party Disclosures. Details of the related party transactions are reported below Transactions and outstanding balances with the ultimate parent - People's Bank Insurance premium in respect of their own policies 207,376, ,185,871 Insurance premium in respect of customers introduced 106,731, ,048,607 Service charge expense 13,648,167 14,190,416 Claims expense 48,674,994 52,766,863 Investment in repurchase agreements (including reinvestments made during the year) 20,116,141,498 13,366,207,594 Settlement of repurchase agreements (including settlement for reinvestments) 19,681,090,614 13,180,055,663 Investment income from overnight repurchase agreements 7,640,158 3,047,353 Treasury bills purchased 2,998,349,433 1,993,419,389 Treasury bills matured 3,779,141,967 2,081,853,952 Interest income from fixed deposits 4,165,395 2,790,572 Interest income from special foreign currency savings account 269, ,576 Building rent expense 900, ,000 Outstanding balances Insurance premium receivable in respect of their own policies 12, ,661 Insurance premium receivable in respect of customers introduced 26,006,828 24,696,556 Service charge expense payable 4,290,130 3,569,482 Claims outstanding 173,314, ,796,547 Fixed deposits 82,439,636 64,814,122 Special foreign currency savings account 20,274,626 16,014,766 Building rent expenses payable 225, ,000 Cash at bank 115,478, ,682,380 Bank overdraft 68,837,191 74,244,436

10 NOTES TO THE FINANCIAL STATEMENTS 13.2 Transactions and outstanding balances with the immediate parent - People's Leasing & Finance PLC Transactions Insurance premium in respect of their own policies 132,164, ,450,339 Insurance premium in respect of customers introduced 3,367,947,044 3,131,843,849 Service charges 466,064, ,170,299 Claims expense - 220,023 Support service expense Note 10,278,185 11,074,238 Computer maintenance expense 37,579,477 35,652,027 Debenture interest 16,853,277 16,921,148 Interest income from savings accounts 1,467,985 1,645,079 Interest income from fixed deposits 29,429,235 16,815,357 Building rent expenses 10,620,623 11,466,336 Vehicle yard expenses 2,147,891 2,312,619 Accomadation income on Negombo branch of PLC 153, ,061 Outstanding balances Insurance premium receivable in respect of their own policies 744, ,925 Insurance premium receivable in respect of customers introduced 643,225, ,221,250 Service charges payable 192,360, ,464,464 Claims outstanding 8,743,044 3,098,569 Support service charges payable 2,181,288 2,181,288 Debentures 112,795, ,805,902 Savings accounts 4,030,818 5,067,223 Fixed deposits 288,262, ,851,705 Building rent expenses payable 1,378,670 1,567,199 Inter-company current account payable 14,680,868 23,114,460 Vehicle yard expense receivable 175, ,286 Accomadation income receivable on Negambo branch of PLC 12,755 12,755 Note: Support service expense mainly includes amounts payable in respect of shared salary expenses in relation to information and communication technology, human resources and logistics services provided to the Company during the period.

11 NOTES TO THE FINANCIAL STATEMENTS 13.3 Transactions and outstanding balances with subsidiary companies of parent company People's Leasing Fleet Management Limited Transactions Insurance premium in respect of their own policies 10,426,234 9,330,349 Vehicle hiring expenses 3,375,512 2,608,078 Assessor's fees 13,180,846 12,581,081 Outstanding balances Insurance premium receivable 1,054,226 38,093 Inter company current account payable 323, ,975 People's Leasing Property Development Limited Transactions Insurance premium in respect of their own policies 1,753,798 1,228,425 People's Microfinance Limited Transactions Insurance premium in respect of their own policies 6,605,798 4,066,034 Insurance premium in respect of customers introduced 106,130,453 82,267,516 Service charges 13,917,635 10,941,788 Rent income 957, ,326 Outstanding balances Insurance premium receivable in respect of their own policies 184,819 39,862 Insurance premium receivable in respect of customers introduced 23,258,297 12,881,845 Service charges payable 4,054,933 2,901,444 Rent income receivable 89,313 86,786 People's Merchant Finance PLC Transactions Insurance premium in respect of their own policies 5,733, ,784 Insurance premium in respect of customers introduced 4,025,961 2,991,177 Service charges 602, ,852 Outstanding balances Insurance premium receivable in respect of customers introduced 1,475, ,212 Insurance premium receivable in respect of their own policies 1,147, ,625 Service charges payable 124, ,086

12 NOTES TO THE FINANCIAL STATEMENTS People's Leasing Havelock Properties Limited Transactions Insurance premium in respect of their own policies 2,534,801 - Rent expense 44,712,887 - Outstanding balances Rent paid in advance 87,000, Transactions with other related companies Other related entities are those which are controlled or significantly influenced, directly or indirectly by key management personnel of the Company. Name of the Company Control, joint control or Nature of transaction significant influence by key management personnel MTD Walkers PLC Mr. Jehan P. Amaratunga Investment income from 4,892,724 47,870,858 debentures Carrying amount of investment 51,229,051 51,211,327 in debenture Sanasa Development Bank Mr. Lakshman Abeysekera Investment income from 5,142,900 5,196,847 debentures Carrying amount of 52,621,836 52,621,842 debenture investments 13.5 Transactions and outstanding balances with the key management personnel People's Insurance PLC considers its Board of Directors, Chief Executive officer and their immediate family members as the key management personnel of the Company. Transactions Short term employment benefits 11,057,500 1,325,000

13 NOTES TO THE FINANCIAL STATEMENTS 13.6 Transactions with the Government of Sri Lanka and its related entities Since the Government of Sri Lanka directly controls the Company s ultimate parent, the Company has considered the Government of Sri Lanka and other entities which are controlled, jointly controlled or significantly influenced by the Government of Sri Lanka as related parties according to Sri Lanka Accounting Standard (LKAS) 24 - Related Party Disclosures. The Company enters into transactions, arrangements and agreements with the Government of Sri Lanka and its related entities and significant transactions have been reported where applicable. Transactions entered into with the Government of Sri Lanka and its related entities, relating to the ordinary course of business are detailed below. Payment of statutory rates and taxes Payment for utilities mainly comprising telephone, electricity and water Payment for employment retirement benefits - EPF and ETF Transactions with National Insurance Trust Fund on reinsurance arrangements 14. Events after the reporting date TheBoardofDirectorsoftheCompanyhasauthorisedasecondinterimdividendofRs.1.00pershareforthefinancial year ended 31 December In accordance with Sri Lanka Accounting Standards (LKAS) 10 - Events after the Reporting Period, this second interim dividend has not been recognised as a liability as at 31 December TheBoardofDirectorsoftheCompanyhasproposedafinaldividendofRs.0.25pershareforthefinancialyearended31 December 2017 to be approved at the forthcoming Annual General Meeting. In accordance with Sri Lanka Accounting Standard(LKAS) 10- Events after the Reporting Period, this proposed dividend has not been recognised as a liability as at 31 December There have been no events subsequent to the reporting date, which would have any material effect on the Company, other than disclosed above. 15. Capital commitments The Company has commitments for acquisition of property, plant and equipment incidential to the ordinary course of business amounting to Rs. 1,268, Contingencies In the opinion of the Directors and the Company s lawyers, pending litigations against the Company will not have a material impact on the reported financial results or future operations of the Company. All pending litigation for claims have been evaluated and adequate provisions have been made in the financial statements.

14 SHARE INFORMATION The information required by section 7.4 of the Listing Rules of the Colombo Stock Exchange(CSE) in its interim financial statements is disclosed below. Liability to management fees or other similar nature expenditure Liability to management fees or any other similar expenditure have been provided for in the interim accounts where applicable. Top 20 shareholders Name of the shareholder As at 31 December 2017 No. of shares % People's Leasing & Finance PLC 150,000, Mr. Kulappu Arachchige Don Anurada Perera 5,293, J. B. Cocoshell (Pvt) Ltd 3,866, Union Assurance PLC/Account No. 05 (Unit-Linked Life Insurance Fund-Equity Fund) 3,189, Deutsche Bank AG as Trustee For JB Vantage Value Equity Fund 2,934, Rubber Investment Trust Limited A/C # 01 2,689, Seylan Bank PLC / Pinnadoowage Aravinda De Silva 2,476, Askold (Private) Limited 2,422, The Ceylon Investment PLC A/C # 02 1,765, The Ceylon Guardian Investment Trust PLC A/C # 02 1,765, Ms. Indrani Kusumalatha De Silva 1,500, Jafferjee Brothers (Exports) Limited 1,159, Bank of Ceylon A/C NDB Wealth Growth Fund 775, Mr. Gulzar Hussein Ibrahim Jafferjee 769, Mr. Murtaza Ali Jafferjee 769, Mrs.Vasantha Bandaranayake 737, Seylan Bank PLC/Channa Nalin Rajahmoney 675, Deutsche Bank AG as Trustee For Guardian Acquity Euity Fund 645, Hallsville Trading Group INC 626, E.W. Balasuriya & Co. (Pvt) Ltd 626, ,688, Others 15,311, ,000, Public shareholding 31 December 2017 % of total no. of No. of shares shares Number of shares 50,000,000 25% Number of shareholders 1, % Directors shareholdings Name of the Director No. of shares as at 31 December 2017 Jehan P. Amaratunga - Chairman - N. Vasantha Kumar - L. Abeysekera - W. M. A. Bandara - S. P. K. Gunarathne - N. P. Karunarathne - A. S. Ibrahim -

15 SHARE INFORMATION Stated capital The number of shares representing the Company s stated capital is given below. Stated capital (Rs.) 1,350,000,000 No. of shares 200,000,000 Class of shares Voting rights Ordinary shares One vote per ordinary share Share performance Net asset value per share as at 31 December Highest price per share for the interim period Lowest price per share for the interim period Last traded price per share as at 31 December INITIAL PUBLIC OFFERING Raise of funds No. of shares as at 31 December 2017 TheCompanyoffered50millionordinarysharesatRs.15persharetothepublicandraisedRs.750millionfromtheInitialPublicOffering(IPO) carried out in December New ordinary shares in respect of the IPO were issued in January The objectives of the IPO were as follows; 1. Meet the regulatory requirement of listing the Company on a licensed stock exchange by 7th February 2016 as per section 52(1) of the Regulation of Insurance Industry (Amendment) Act No. 3 of Further strengthen the equity base of the Company and thereby the Capital Adequacy Ratio(CAR) under the Risk Based Capital(RBC) regime implemented by the IBSL effective from The funds raised from the IPO were to be invested in financial securities keeping in line with asset allocation strategy of the Company. Rs. Utilisation of funds According to the objective number two specified above, the funds raised were invested in financial securities. A detailed analysis of the utilisation of funds is tabulated below. Obj. No. Objective as per prospectus Amount allocated as per Prospectus in Rs. Proposed date of utilisation as per prospectus Amount allocated from proceeds in Rs. % of total proceeds Amount utilised in Rs. % of utilisation against allocation Classification if not fully utilised including where the funds are invested 2 Please refer objective no. 2 above. The proposed asset allocation for the funds raised through IPO as per the prospectus is as follows; (A) (B) (B/A) Corporate debt 50% 375,000, ,000,000 50% 375,000, % During the Fixed deposits 25% 187,500, ,500,000 25% 187,500, % financial year Government securities 15% 112,500, ,500,000 15% 120,255, % 2016 Equity 10% 75,000,000 75,000,000 10% 67,244,420 90% Note 750,000, ,000, % 750,000,000 Note: The amount invested in equity does not include the listed shares amounting to Rs. 31,327,938 which were purchased using the IPO funds and sold as at the reporting date. Unutilised funds have been temporary invested in government securities.