Interim Financial Statements

Transcription

1 Interim Financial Statements for the period ENDED 30 June 2017

2 INTERIM FINANCIAL STATEMENTS Content.. Description Page No. 1. Statement of Financial Position Statement of Profit or Loss and Other Comprehensive Income Statement of Changes in Equity Statement of Cash Flows Notes to the Interim Financial Statements Segment Information Shareholder Information 10

3 Statement of Financial Position As at 30 June 2017 As at 31 March 2017 (Unaudited) Rs.'000 (Audited) Rs.'000 ASSETS Cash and cash equivalents 809,940 87,571 Investment securities 1,132,951 1,107,401 Investment in term deposits 1,289, ,077 Receivable on lease assets and hire purchases 163, ,527 Advances and other loans 11,101,625 11,015,224 Trade and other current assets 414,555 87,639 Deferred tax asset - - Property, plant and equipment 151, ,255 Total assets 15,062,957 12,899,694 LIABILITIES & EQUITY Liabilities Bank overdrafts 1,269, ,237 Deposits from customers 2,767,583 2,813,322 Interest bearing loans & borrowings 4,030,655 2,050,139 Provision for taxation 120, ,112 Trade and other payables 4,344,460 6,356,606 Retirement benefit obligations 25,556 23,595 Deferred tax liabilities 10,822 10,822 Total liabilities 12,569,193 11,775,833 Equity Stated capital 1,493, ,180 Reserves 84,193 83,296 Retained earnings 916, ,384 Total equity 2,493,764 1,123,861 Total liabilities & equity 15,062,957 12,899,694 Net assets per share (Rs.) Certification : These financial statements have been prepared in compliance with the requirements of the Companies Act No. 7 of sgd... Mrs. S.S.Kotakadeniya Chief Financial Officer - LOLC Group The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board.. Mr. Kapila Jayawardena Director Date: 20 July 2017 Rajagiriya (Greater Colombo) sgd. sgd.... Mr. R. D. Tissera Director 1

4 Statement of Profit or Loss & Other Comprehensive Income For the quarter ended 30 June Rs.'000 Rs.'000 Variance % (Unaudited) (Unaudited) Interest income 942, ,273 37% Interest expenses (315,619) (239,378) 32% Net interest income 627, ,895 40% Other operating income 39,652 18, % Operating expenses Allowance for impairment and write-offs (218,027) (44,016) 395% Personnel expenses (152,953) (99,686) 53% Depreciation (5,352) (3,755) 43% General & administration expenses (202,997) (95,523) 113% Profit from operations 87, ,079-61% Value added tax on financial services (21,921) (31,335) -30% Profit before income tax expense 65, ,744-66% Income tax expense (18,316) (77,061) -76% Profit for the period 47, ,683-59% Other comprehensive income Items that are or may be reclassified to profit or loss Net change in fair value of available-for-sale financial assets 896 (28) 3299% Defined benefit plan actuarial gains (losses) for the year Income tax recognised in other comprehensive income Total other comprehensive income, net of tax 896 (28) 3299% Total comprehensive income 47, ,655-59% Basic earnings per share (Rs.) % Figures in brackets indicate deductions. Notes Significant growth was taken place during past twelve months due to the expansion of the business operations. 2

5 Statement of Changes in Equity For the period ended 30 June 2017, Capital Reserves Revenue Reserves Stated Capital Reserve Fund Fair Value Reserve on AFS Retained Earnings Total Equity Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance as at 1 April ,180 74,652 (389) 658, ,761 Profit for the Year , ,927 Other comprehensive income, net of income tax Acturial losses on defined benefit plan ,965 2,965 Net change in fair value of available-for-sale financial assets - - (1,962) - (1,962) Tax on other comprehensive income (830) (830) - - (1,962) 2, Total comprehensive income for the year - - (1,962) 222, ,100 Transactions recorded directly in equity - Transfer to Reserve Fund - 10,996 - (10,996) - Total transactions recorded directly in equity - 10,996 - (10,996) - Balance as at 31 March ,180 85,648 (2,351) 869,384 1,123,861 Balance as at 1 April ,180 85,648 (2,351) 869,384 1,123,861 Profit for the period ,099 47,099 Issue of shares 1,321, ,321,907 Other comprehensive income, net of income tax Net change in fair value of available-for-sale financial assets Total comprehensive income for the year 1,321, ,099 1,369,902 Balance as at 30 June ,493,088 85,649 (1,455) 916,483 2,493,764 3

6 Statement of Cash Flows For the period ended 30 June, Rs.'000 Rs.'000 Cash flow from operating activities Profit before income tax 65, ,744 Adjustment for, Depreciation and amortization 5,352 3,755 Provision for retirement benefit obligation 1,961 1,591 Loan write-offs - 1,697 Impairment charges for loans and other losses 218,027 42,319 Operating profit before working capital changes 290, ,106 (Increase) in loans and advances (358,912) (1,314,849) Decrease/ (Increase) in other assets (337,235) (16,087) Increase/ (Decrease) in deposits from customers (45,740) 1,613,823 (Decrease) in other liabilities (1,997,417) (1,257,062) Cash (used)/ generated in/ from operations (2,448,549) (732,070) Payments of retirement gratuity - - Income tax paid (5,000) (10,039) Net cash flows generated in operating activities (2,453,549) (742,109) Cash flows from investing activities Acquisition of property plant and equipments and intangible assets (12,465) (14,238) Purchase of treasury bills (15,339) (255,882) Investment in term deposits (938,103) - Net cash flows (used)/ generated in/from investing activities (965,908) (270,120) Cash flows from financing activities Borrowings obtained/(repaid) during the year 1,964,462 1,028,516 Issue of shares 1,321,907 - Net cash flows (used)/ generated in/from financing activities 3,286,369 1,028,516 Net (decrease)/ increase in cash and cash equivalents (133,087) 16,288 Cash and cash equivalents at the beginning of the period (326,663) 170,129 Cash and cash equivalents at the end of the year (Note 01) (459,750) 186,417 Note 01 Cash and cash equivalents 809,940 1,065,295 Bank overdrafts (1,269,690) (878,878) Cash and cash equivalents at the end of the year (459,750) 186,417 4

7 Notes to the Interim Financial Statements For the period ended 30 June 2017, 1. General These three months financial statements have been prepared in accordance with LKAS 34 Interim Financial Reporting and do not include all of the information required for a full set of financial statements. The requirements of the Colombo Stock Exchange and the Companies Act No.7 of 2007 have also been considered in preparing these financial statements The information for the preparation of these interim financial statements has been drawn up from the unaudited financial records of the Company. Accounting policies and method of computation as stated in the audited financial statements for the year 2016/17 are followed in the preparation of these Interim Financial Statements. 2. Stated Capital The Stated Capital of the Company is represented by 237,943,274 ordinary shares. 3. Provision for management expenditure All expenses related to management expenditure are fully provided for in these Financial Statements. 4. Share information Market prices of ordinary shares recorded during the quarter ended 30 June 2017 are as follows, Rs Market price as at 30 June Highest Price Lowest Price

8 Notes to the Interim Financial Statements For the period ended 30 June 2017, 5 Financial assets and liabilities 5.1 Accounting classifications and fair values The table below sets out the carrying amounts of the Company s financial assets and financial liabilities. As at 30 June 2017 Fair value derivatives Fair value - held for trading Fair value through other comprehensive income available for sale Amortized cost / Not measured at fair value Total Carrying amount Fair value Rs '000 Fair value measurement level Cash and cash equivalents , , ,940 Investment in Term Deposit ,289,508 1,289,508 1,289,508 Investment in government securities Measured at fair value , ,000 Level 2 - Measured at amortized cost , , ,940 Investment in shares Level 3 Receivable on lease assets and hire purchases , , ,011 Advances and other loans ,101,625 11,101,625 11,101,625 Other financial assets , , ,555 Total financial assets ,011 14,336,578 14,911,589 14,911,589 Bank overdraft ,269,690 1,269,690 1,269,690 Interest bearing borrowings ,030,655 4,030,655 4,030,655 Deposits from customers ,767,583 2,767,583 2,767,583 Trade and other payables , , ,255 Amount due to related companies ,240,205 4,240,205 4,240,205 Total financial liabilities ,412,386 12,412,386 12,412,386 6

9 Notes to the Interim Financial Statements For the period ended 30 June 2017, 5 Financial assets and liabilities (Cont.) 5.1 Accounting classifications and fair values The table below sets out the carrying amounts of the Company s financial assets and financial liabilities. As at 31 March 2017 Fair value derivatives Fair value - held for trading Fair value through other comprehensive income available for sale Amortized cost / Not measured at fair value Total carrying amount Fair value Rs '000 Fair value measurement level Cash and cash equivalents ,571 87,571 87,571 Investment in government securities Measured at fair value , , ,000 Level 2 - Measured at amortized cost , , ,390 Investment in shares Level 3 Receivable on lease assets, hire purchases and operating leases , , ,527 Advances and other loans ,015,224 11,015,224 11,015,224 Other financial assets ,639 87,639 87,639 Total financial assets ,011 11,874,351 12,406,362 12,406,362 Bank overdraft , , ,237 Interest bearing borrowings ,050,139 2,050,139 2,050,139 Deposits from customers ,813,322 2,813,322 2,813,322 Trade and other payables ,179 81,179 81,179 Amount due to related companies ,275,427 6,275,427 6,275,427 Total financial liabilities ,634,305 11,634,305 11,634,305 7

10 Notes to the Interim Financial Statements For the period ended 30 June 2017, 5.2 Financial assets and liabilities- Valuation technique Level 2 fair value discounted cash flows Financial instruments not measured at fair value For the purpose of disclosing fair value of the financial instruments not measured at fair value (carried at amortized cost) discounted cash flows has been used to derive the fair value. 6 Selected Performance Indicators Regulatory Capital Adequacy Total Tier I Core Capital Rs' 000 2,448,120 1,123, , ,761 - Total Capital Base Rs' 000 2,601,425 1,267, , ,002 - Core capital adequacy ratio 19.96% 9.71% 9.59% 11.22% (Minimum requirement 5%) - Total Capital adequacy ratio 21.21% 10.96% 10.42% 11.63% (Minimum requirement 10%) Asset Quality Ratios Gross Non-performing Advances Ratio 1.82% 0.58% 1.06% 0.82% - Net Non-performing Advances Ratio 0.00% 0.00% 0.00% 0.00% Regulatory Liquidity Available Liquid Assets Rs' 000 1,207,951 1,182,842 1,195,411 1,444,238 - Required Liquid Assets Rs' 000 1,057,477 1,133, , ,007 - Liquid Assets to Deposit ratio 44% 42% 57% 122% 7 Contingent liabilities There are no significant changes in the nature of the contingent liabilities disclosed in the financial statement for the quarter ended 30 June Comparative information Comparative information has not been reclassified or restated. 9 Events after reporting date There have been no material events occurring after the reporting date other than disclosed here that require adjustment to or disclosure in these Financial Statements. 10 Recurring Related Party Transactions Name of the Related Party Amount Rs. Interest Rate Rationale Relationship Commercial Leasing & Finance PLC For working capital Parent Company 1,000,000, % requirements LOLC Factors Limited For working capital A company within the 3,209,500, % requirements LOLC group 8

11 Segment Information For the Period ended 30 June 2017, Operating Segment Leasing Hire Term Micro Finance Other Total Purchase Loans Rs '000 Rs '000 Rs '000 Rs '000 Rs '000 Rs '000 For the period ended 30 June 2017 Total revenue 10, , ,238 39, ,285 Inter segmental revenue External revenue 10, , ,238 39, ,285 Net interest cost (3,352) (79) (7,299) (292,148) (12,741) (315,619) Profit before operating expenses 7, , ,090 26, ,666 Operating expenses (6,153) (146) (13,397) (536,248) (23,386) (579,329) Value added tax on financial services (243) (6) (528) (21,145) - (21,921) Results from operating activities ,491 59,698 3,525 65,415 For the period ended 30 June 2016 Total revenue 5, , , , ,436 Inter segmental revenue External revenue 5, , ,311 24, ,436 Net interest cost (1,900) (259) (1,091) (227,814) (8,314) (239,378) Profit before operating expenses 3, , ,497 16, ,058 Operating expenses (1,579) (215) (907) (189,353) (6,910) (198,964) Value added tax on financial services (257) (35) (148) (30,895) - (31,335) Results from operating activities 2, ,066 9, ,759 For the period ended 30 June 2017 Provision for / (reversal of provision for) doubtful debts and bad debts written off 4,547 (1,254) , ,027 As at Total assets 154,903 8, ,846 10,880,779 3,798,321 15,062,957 Total liabilities 129,258 6, ,284 9,079,400 3,169,486 12,569,193 As at Total assets 82,565 15,512 30,396 9,036,219 2,352,607 11,517,300 Total liabilities 75,257 14,139 27,706 8,236,408 2,144,374 10,497,884 9

12 Notes to the Interim Financial Statements For the period ended 30 June 2017, 11. Statement of Directors' and Chief Executive Officer s holding in Shares of the Entity. As at 30 June 2017 Directors Name No. of shares % Mr.I.C.Nanayakkara Nil Nil Non Executive Chairman Mr. W.D.K.Jayawardena Nil Nil Non Executive Director Mr. R.D.Tissera Nil Nil Non Executive Director Mr. A.J.L.Peiris Nil Nil Senior Independent Director Mr. W.R.A Dharmaratne Nil Nil Independent Non-Executive Director Mr. Rohana Kumara Nil Nil Chief Executive Officer 12. Top 20 Shareholders As at Share holders 30-Jun-17 No of shares held % 1 Lanka Orix Leasing Company PLC 132,180, % 2 Commercial Leasing & Finance PLC 105,498, % 3 First Capital Markets Ltd/Mr. N.A. Sellahewa 104, % 4 Ms.Mannanayake 50, % 5 Mr. Niroshan Ariya Aellahewa 29, % 6 Mr. Francis Jayarupan Pradeep Raj 15, % 7 Mr. Kuda Pullige Carolis Abeyratna 13, % 8 Mr. Puvendran Gajendra 2, % 9 Mr. Dodawaththe Gamarallage Wasantha Kumara 2, % 10 Mr. Devagirige Peter Fernando 2, % 11 Mr. Pelawattage Pieris Upali Anandasiri 2, % 12 Mr. Anthoney Pererage Nalin Jayawardena 1, % 13 Ms. Samaraweera Mudalige Vimala Samaraweera 1, % 14 Ms. Samaraweera Mudalige Sumana Samaraweera 1, % 15 Ms. Samaraweera Mudalige Samaraweera 1, % 16 Ms. Samaraweera Mudalige Samaraweera 1, % 17 Ms. Samaraweera Mudalige Susila Samaraweera 1, % 18 Mr. Chandra Kumara Lakshman Gunewardena 1, % 19 Mr. Kumarasiri Jayalath De Silva 1, % 20 Mr. Mohamed Faheem Samsudeen 1, % Sub Total 237,917, % Other Shareholders 25, % 237,943, % Public share holding as at 30th June 2017 was 0.11% comprising 127 shareholders. 10