INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, LB Finance PLC

Transcription

1 INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2012 LB Finance PLC

2 LB FINANCE PLC INCOME STATEMENT FOR 3 MONTHS ENDED FOR 6 MONTHS ENDED Variance Variance % % Income 2,727,790 1,815, ,223,663 3,477, Interest Income 2,516,098 1,677, ,803,972 3,240, Interest Expenses 1,452, ,622 (70) 2,693,584 1,628,665 (65) Net Interest Income 1,063, , ,110,388 1,612, Fee Based Income 169, , , , Other Operating Income 41,477 27, ,981 49, , , , , ,274, , ,524,250 1,845, Less: Operating Expenses Staff Costs 250, ,413 (30) 485, ,597 (35) Provision for Staff Retirement Benefits 10,385 10,309 (1) 20,693 16,438 (26) General & Administration Expenses 297, ,430 (45) 590, ,830 (69) Provision for fall in value of Investments, Bad and doubtful loans and write offs 30,827 15,411 (100) 56,179 30,276 (86) Profits from operations 685, , ,371,419 1,090, Value Added Tax on Financial Services 41,878 32,985 (27) 86,473 73,794 (17) Profits before Tax 643, , ,284,946 1,016, Provisions for Taxation 214, ,221 (41) 422, ,283 (34) Net Profit for the Period 429, , , , Earnings per share STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2012 Stated Capital Reserve Fund Investment Fund Reserve Accumulated Profit Total Balance as at 01 April , , ,795 2,113,862 4,006,458 Net Profit for the Period , ,108 Transfers to/(from) during the period - 172, ,271 (289,693) - Dividend for 2011/ (346,277) (346,277) Balance as at 30th September ,282 1,024, ,066 2,340,000 4,522,289 Balance as at 01 April , ,502 30,855 1,217,079 2,613,718 Net Profit for the Period , ,168 Appropriation of Bad Debts ,029 5,029 Transfers to/(from) during the period - 140,034 64,162 (204,195) - Dividend for 2010/ (242,400) (242,400) Balance as at 30th September , ,536 95,017 1,475,681 3,076,515

3 LB FINANCE PLC BALANCE SHEET Audited AS AT AS AT ASSETS Cash and amounts due from bank 658, ,506 Placements with other banks 1,027, ,593 Treasury Bills & other bills eligible for re-discounting with Central Bank 2,203,713 1,266,964 Real Estate Stock 134, ,212 Loans and Advances 15,556,535 12,892,125 Lease rentals receivable & Stock out on hire 25,817,415 23,834,737 Investment Securities 140, ,557 Other Debtors, Deposits and Prepayments 905, ,464 Advances given for Vehicle stocks 18, ,213 Intangible Assets 17,234 19,340 Property, Plant & Equipment 2,064,357 1,868,286 Deferred Taxation 34,964 34,964 Total Assets 48,578,004 42,773,961 LIABILITIES Deposits from non-bank customers 32,747,401 26,257,699 Borrowings 7,391,378 8,975,716 Accrued charges & Trade creditors 2,654,944 2,152,830 Debentures 995, ,000 Retirement Benefit Liability 64,270 44,231 Taxes Payable 202, ,027 Total Liabilities 44,055,715 38,767,503 SHAREHOLDERS' FUNDS Stated Capital 838, ,282 Reserves 3,684,007 3,168,176 Total Equity 4,522,289 4,006,458 48,578,004 42,773,961 Net Assets per Share (Rs.) Note : All values are in Rupees ' 000 s unless otherwise stated. The above figures are subject to audit These Financial statements are in compliance with the requirements of the Companies Act No.7 of Chief Financial Officer The board of Directors is responsible for the preparation and presentation of the financial statements signed for and on behalf of the board by ; Chairman Colombo 9th November 2012 Managing Director Colombo

4 LB FINANCE PLC CASH FLOW STATEMENT FOR 6 MONTHS ENDED Cash Flows From / (Used in) Operating Activities Profits before Tax 1,284,946 1,016,451 Adjustments for Depreciation 144,580 64,667 Amortization of computer software 2,667 2,290 Interest cost on Finance Leases 2,367 2,371 Provisions for doubtful debts 56,179 30,276 Provision for Defined Benefit Plan Costs 20,693 16,438 Profit from sale of Fixed Assets (1,981) (9,629) Notional Tax credit on Interest on Treasury Bills (12,402) (5,794) Withholding Tax Attrubuted to Fixed Deposit Interest (6,423) (2,517) (Profit) /Loss from Mark to Market of Shares (18,373) 11,648 (Profit)/ Loss from sale of investments - (4,660) Dividends Received (2,329) (3,856) Operating Profit/(Loss) before Working Capital Changes 1,469,924 1,117,685 (Increase)/ Decrease in Real Estate Stock 8,938 78,020 (Increase)/ Decrease in Lease Rentals Receivable and Stock out on hire (2,027,656) (3,985,599) (Increase) /Decrease in Government of Sri Lanka Treasury Bills (268,523) 350,968 (Increase)/ Decrease in Loans and Advances (2,680,691) (2,028,820) (Increase) /Decrease in Other Debtors, Deposits & Prepayments (71,941) (142,962) (Increase) /Decrease in Vehicle stocks 108, ,714 (Increase)/ Decrease in Placements with Banks (63,439) (376,334) Increase / (Decrease) in Deposits from Non Bank Customers 6,489,702 2,832,987 Increase / (Decrease) in Borrowings (1,049,550) 2,559,458 Increase / (Decrease) in Accrued Charges 502,114 (25,506) Cash Generated from Operations 2,417, ,611 Retirement Benefit Liabilities Paid (655) (572) Net Cash from/(used in) Operating Activities 2,417, ,039 Taxes paid (539,883) (537,655) Net Cash from/(used in) Operating Activities 1,877,196 (16,616) Cash Flows from / (Used in) Investing Activities Acquisition of Property, Plant & Equipment (341,228) (347,362) Proceeds from /(acquisition) Sale of Other investments - 29,789 Dividends Received 2,329 3,856 Proceeds from Sale of Fixed Assets 1,997 9,629 Net Cash Used in Investing Activities (336,902) (304,088) Cash Flows from / (Used in) Financing Activities Payment under Finance Lease Liability (8,599) (7,094) Dividends paid (346,277) (242,400) Net Cash from / (Used) in Financing Activities (354,876) (249,494) Net Increase/(Decrease) in Cash and Cash Equivalents 1,185,418 (570,197) Cash and Cash Equivalents at the beginning of the period 452, ,837 Cash and Cash Equivalents at the end of the period 1,637, ,640

5 EXPLANATORY NOTES The accounting policies and methods of computation followed in preparing the above financial statements are the same as those disclosed in our Annual Report for the year ended 31st March These Financial Statements are presented in accordance with Sri Lanka Accounting Standard No.35 Interim Financial Reporting. The Company is required to prepare interim financial statements in accordance with LKAS 34- Interim Financial Reporting. However the Institute of Chartered Accountants of Sri Lanka has decided to allow companies to prepare interim financial statements during the first financial year commencing on or after January 1,2012 in accordance with Sri Lanka Accounting Standards that existed immediately prior to that date & disclose the impact & if the determination is impracticable, required to disclose the fact. The Company is in the process of developing a system to convert the financial statements according to the new Sri Lanka Accounting Standards (LKAS/ SLFRS). There have been no material events occurring after the balance sheet date that require adjustments to or disclosure in the Financial Statements except the Board of Directors has declared a first & final dividend of Rs.5/- per share totaling to Rs.346 Million on 06th June The Commitment & Contingencies as at 30th Sept 2012 is Rs.784.8Mn & as at 31st March 2012 is Rs.628.6Mn. Information on Shares For the Quarter Ended Share Price During the Quarter Highest Rs Lowest Rs Closing Rs No of Ordinary Share Issued As At 30, June 69,257,142 69,257,142 Information on Listed Debentures Debt Equity Ratio % % Quick Asset Ratio 9.98% 9.79% Interest Cover Interest Rate of Comparable Government Securities 14.15% 8.60% Market Price During Three Months Not Traded * Not Traded * Interest Yield As At Date of Last Trade Not Traded * Not Traded * Yield To Maturity of Trade Done Not Traded * Not Traded * Capital Adequacy INFORMATION ON ORDINARY SHARES SELECTED PERFORMANCE INDICATORS As At As At Core Capital to Risk Weighted Asst Ratio (Minimum 5%) 10.57% 9.30% Total Capital to Risk Weighted Asset Ratio (Minimum 10%) 12.40% 10.00% Capital Funds to Total Deposit Liabilities Ratio 13.81% 13.70% Profitability Return on Equity -Annualized 40.43% 49.22% Return on Assets (After Tax) -Annualized 3.81% 4.45% Asset Quality (Rs.'Mn) Non-Performing Accommodation (Net of Interest in Suspense) 1,145 1,342 Total Accommodations (Net of Interest in Suspense) 49,315 36,534 Net Total Accommodations (Net of Provision for Bad & Doubtful Debts 48,671 35,967 & Interest in Suspense) Liquidity (Rs.'Mn) Required Minimum Amount of Liquid Asset 3,283 2,247 Available Amount of Liquid Asset 3,706 2,391 Required Minimum Amount of Government Securities 1,723 1,171 Available Amount of Government Securities 1,935 1,193 CASH AND CASH EQUIVALENTS IN THE CASH FLOW STATEMENT Cash & Bank Balances 658, ,891 Re-Purchase Agreements ( less than 3 months) 1,935,190 1,193,442 Bank Overdrafts (955,631) (1,402,693) Total Cash and Cash Equivalents Rs. 1,637, ,640

6 SEGMENTAL ANALYSIS Lease & Stock out on Hire Loans & Advances Real Estate Others Total Interest 3,062,685 2,290,291 1,551, , ,252 87,930 4,803,971 3,240,749 Real Estate ,634 4,043-14,634 4,043 Fee Based Income & others 173,551 81, , ,882-66,354 27, , ,817 Total Revenue 3,236,236 2,371,609 1,716, ,732 15,583 4, , ,547 5,223,661 3,477,609 Segmental Result 1,188,990 1,027, , ,663 (1,914) (7,270) 61,221 9,127 1,732,660 1,338,443 Unallocated Expenses (447,715) (321,992) Profits from operations 1,284,946 1,016,451 Income Tax expenses (422,838) (316,283) Net profit for the period 862, ,168 Segment Asset 27,177,616 20,714,925 16,123,172 9,771, , ,821 3,458,663 2,155,129 46,898,615 32,804,253 Unallocated Assets 1,679,389 1,921,376 Total Assets 48,578,004 34,725,629 Segment Liabilities 4,860,266 4,393,303 2,702,840 2,072,352 23,329 34,532 1,526, ,081 9,112,871 7,372,270 Unallocated Liabilities 34,942,844 24,276,844 Total Liabilities 44,055,715 31,649,114

7 L B Finance PLC Interim Financial Statements for the six months ended 30th September 2012 Additional Notes Twenty Largest Share holders as at 30th September 2012 Name No. of Shares (%) 1 Vallible One PLC 35,321, Royal Ceramics Lanka PLC 17,903, Commercial Bank of Ceylon PLC/ 3 Esna Holdings (Pvt) Ltd 7,003, Sri Lanka Insurance Corporation Ltd - Life Fund 1,842, Mercantile Investment Limited 953, Seyllan Bank PLC/Mr. W D N H Perera 429, Mr. H A M P Algama 200, Environmental Resources Investment PLC 188, Mr. E Bianchi 154, Mr. L W A De Soysa 150, Mr. A M Weerasinghe 148, Mr.K D A Perera 147, Waldock Mackenzie Ltd / Mrs G Soysa 111, Mrs. P C Cooray 97, Mr. P S R Casie Chitty 84, Commercial Bankof Ceylon PLC/D S L Investments 80, Mr P A J Kumara 79, Mr T Jeramiah 77, Mr K Karunanayake & Ms P N Karunanayake 74, Mr P Somadasa 72, ,121, Others 4,135, Total 69,257, Directors' and Chief Executive Officer's holding in shares as at 30th September 2012 Name No. of shares % Mr. L N De Silva Wijeyeratne - - Mr. K D D Perera - - Mr. J A S S Adhihetty (Managing Director) 53, Mr. Nimal Perera/ Seylan Bank PLC 429, Mr. Nimal Perera Mr. A M Weerasinghe 148, Mr. K D A Perera 147, Mr. N Udage 4, Mr. B D St. Auburn Perera - - Mrs. K Fernando 1, Mrs. Shirani Jayasekara - - PUBLIC HOLDING The percentage of shares held by the public as at 30th September 2012 is %