HNB Finance : Interim Financial Statement period ended 30th June 2022

INTERIM FINANCIAL STATEMENTS

HNB FINANCE PLC

(for the period ended June 30, 2022)

HNB FINANCE PLC

STATEMENT OF FINANCIAL POSITION

	30/06/2022	Audited 31/03/2022
As at	LKR	LKR
Assets
Cash and Cash Equivalents	4,526,050,136	1,282,750,567
Financial Assets at Amortised Cost - Loans and Receivables	22,897,548,913	23,728,547,027
Financial Assets at Amortised Cost - Lease Rentals Receivable and Stock
out on Hire	13,234,703,086	13,616,192,279
Financial assets at amortised cost - Loans and advances to others	300,666,878	295,201,210
Financial Assets Measured at Fair Value Through Other Comprehensive
Income	2,712,110	2,712,110
Financial assets at amortised cost - Debt and other instruments	5,551,305,224	3,332,608,450
Other Financial Assets	84,473,396	71,864,928
Other Non Financial Assets	332,785,678	411,113,119
Investment properties	1,136,000,000	1,136,000,000
Property, Plant and Equipment	1,893,854,267	1,929,115,714
Intangible Assets	273,829,250	291,674,447
Right -of-use assets	293,271,188	237,080,673
Deferred Tax Assets	222,142,957	222,142,957
Total Assets	50,749,343,084	46,557,003,481
Liabilities
Bank Overdraft	-	1,011,726,138
Financial Liabilities at Amortised Cost - Due to Depositors	39,433,330,297	34,703,070,381
Debt Instruments Issued and Other Borrowed Funds	4,917,647,980	3,255,330,464
Other Financial Liabilities	493,427,894	1,251,667,473
Other Non Financial Liabilities	99,750,476	189,884,747
Current Tax Liabilities	134,827,163	227,210,752
Post Employment Benefit Liability	310,419,063	298,801,625
Total Liabilities	45,389,402,872	40,937,691,580
Equity
Stated Capital	223,545,481	223,545,481
Reserves	2,020,307,330	2,020,307,329
Retained Earnings	3,116,087,401	3,320,131,820
Total Equity Attributable to Equity Holders of the Company	5,359,940,212	5,563,984,630
Non Controlling Interest	-	55,327,271
Total Equity	5,359,940,212	5,619,311,901
Total Liabilities and Equity	50,749,343,084	46,557,003,481
Net Asset Value per Share (Rs.)	3.12	3.24
Commitments and Contingencies	-	-

CERTIFICATION:

I certify that the above financial statements are in compliance with the requirements of the Companies Act No. 7 of 2007 and give a true and fair view of the state of affairs of HNB Finance PLC as at 30 June 2022 and its profit for

the three months ended 30 June 2022.

Sgd

W S P Arangala

Chief Operating Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board of Directors by,

Sgd	Sgd
B M D C Prabhath	P L P Withana
Managing Director/CEO	Director
15-Aug-22	15-Aug-22

HNB FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

	FOR THE 3 MONTH ENDED
	30/06/2022	30/06/2021	Variance
	LKR	LKR	%
Income	2,295,359,173	1,756,874,137	30.65
Interest Income	2,180,781,894	1,657,061,444	31.61
Interest Expenses	(1,357,776,934)	(680,567,342)	(99.51)
Net Interest Income	823,004,960	976,494,102	(15.72)
Net Fee and Commission Income	10,661,062	53,034,575	(79.90)
Other Operating Income	103,916,217	46,778,118	122.15
Total Operating Income	937,582,238	1,076,306,795	(12.89)
Impairment Charges and Other Losses	(174,303,302)	(205,316,412)	15.11
Net Operating Income	763,278,936	870,990,383	(12.37)
Operating Expenses
Personnel Expenses	(373,870,274)	(344,435,476)	8.55
Depreciation of Property, Plant and Equipment	(35,181,256)	(28,926,361)	21.62
Amortisation of Intangible Assets	(19,445,190)	(19,975,628)	(2.66)
Other Operating Expenses	(498,351,139)	(307,750,619)	61.93
Operating Profit before Tax on Financial Services	(163,568,923)	169,902,299	(196.27)
Tax on Financial Services	(24,833,700)	(62,408,083)	(60.21)
Profit before Taxation	(188,402,623)	107,494,216	(275.27)
Income Tax Expense	(9,908,738)	(30,678,260)	(67.70)
Profit/(Loss) for the Period	(198,311,361)	76,815,956	(358.16)
Basic Earnings Per Share (Rs.)	(0.12)	0.04	(389.04)
Other Comprehensive Income
Other Comprehensive Income to be reclassified to Profit or Loss
Net Gains/(Losses) on Investment in Equity Instruments - Fair Value Through Other
Comprehensive Income
Other Comprehensive Income that will never be Reclassified to Income Statement	-	-
Actuarial gain/(losses) on defined benefit plans	-	-
Net Gains/(Losses) on Investment in Equity Instruments - Fair Value Through Other
Comprehensive Income	-	-
Revaluation Reserve of free hold lands and buildings-Net of tax	-	-
Other Comprehensive Income for the Period, Net of Tax	-	-
Total Comprehensive Income for the Period, Net of Tax	(198,311,361)	76,815,956	(358.16)
Attributable to:
Equity Holders of the Company	(198,311,361)	76,815,956	(358.16)
Total Comprehensive Income for the Period, Net of Tax	(198,311,361)	76,815,956	(358.16)

HNB FINANCE PLC

STATEMENT OF CHANGES IN EQUITY

					Non Controling
	Stated Capital	Retained Earnings	Statutory Reserve	Fair Value Reserve	Interest	Total Equity
	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.
Balance as at 01 April 2021	223,545,481	2,896,625,533	1,091,098,380	683,636,861	-	4,894,906,255
Net profit for the Period	-	76,815,956	-	-	-	76,815,956
Other Comprehensive Income, net of Tax	-	-	-	-	-	-
Transfers During the Period	-	-	-	-	-	-
Balance as at 30 June 2021	223,545,481	2,973,441,489	1,091,098,380	683,636,861	-	4,971,722,211
Balance as at 01 April 2022	223,545,481	3,320,131,820	1,184,616,843	835,690,487	55,327,271	5,619,311,902
Net profit for the Period	-	(198,311,361)		-	-	(198,311,361)
Other Comprehensive Income, net of Tax	-	-	-	-		-
Non-controlling interest movement	-				(55,327,271)	(55,327,271)
Acquisition of NCI without Change in Control		(5,733,058)				(5,733,058)
Balance as at 30 June 2022		3,116,087,401	1,184,616,843	835,690,487	-	5,359,940,212

HNB FINANCE PLC

CASH FLOW STATEMENT

		30/06/2022	30/06/2021
	Period ended	LKR	LKR
	Cash Flows from/(Used in) Operating Activities
	Profit and Other Comprehensive Income/(Expenses) before Taxation	(188,402,623)	107,494,216
	Adjustments for
	Interest expenses on borrowings	193,311,016	-
	Interest expenses on debentures	72,733,955	-
	Depreciation of Property, Plant and Equipment	35,181,255	28,926,361
	Amortisation of Intangible Assets	19,445,191	19,975,628
	Impairment Charges and Other Losses	174,303,302	205,316,413
	Loss/(Profit) on Disposal of Property, Plant and Equipment	194	-
	Provision/(Reversal) for Defined Benefit Plans	15,984,388	12,390,621
	Ammortization of Right of use assets	20,382,474	-
	Interest Expenses from lease Liability	7,093,239	-
	Dividend Received	-	-
	Interest Income on Investing Activities	(174,682,071)	(40,084,049)
	Provision for value added tax	24,833,700	62,408,083
	Crop insurance levy	-	-
	Provision for nation building tax	-	-
	Provision for amount payable under Sip Saviya Scheme	300,000	-
	Change in fair value of financial assets measured at FVTPL	-	-
	Fair Value gain on Investment Property	-	-
	Operating Profit before Working Capital Changes	200,484,020	396,427,273
	(Increase)/Decrease in Loans and advances to customers	346,834,485	81,040,807
	(Increase)/Decrease in Lease Rentals Receivable and Stock out on Hire	250,165,865	158,346,042
	(Increase)/Decrease in Loans and advances to others	(5,475,148)
	(Increase)/Decrease in Other Financial Assets	(12,608,468)	33,077,133
	(Increase)/Decrease in Other Non Financial Assets	78,327,441	106,520,048
	Increase/(Decrease) in Amounts Due to Customers	4,730,259,916	(1,433,128,954)
	Increase/(Decrease) in Other Financial Liabilities	(804,716,050)	(123,503,148)
	Increase/(Decrease) in Other Non Financial Liabilities	(90,134,272)	(2,611,250)
	Cash Generated from Operations	4,693,137,789	(783,832,049)
	Retirement Benefit Liabilities Paid	(4,482,750)	(2,845,500)
	Value added tax Paid	(92,269,022)	(40,026,158)
	Crop insurance levy Paid	(2,711,137)	-
	Income Tax Paid	(19,617,522)	-
	ESC Paid	-	-
	Net Cash from/(Used in) Operating	4,574,057,358	(826,703,707)
	Cash Flows from/(Used in) Investing Activities
	Acquisition of Property, Plant and Equipment	-	(88,626,372)
	Acquisition of Intangible Assets	-	(16,122,340)
	Proceeds from Sale of Property, Plant and Equipment	-	-
	Net of investment in Financial assets at amortised cost - government security	(233,529,482)	(461,816,183)
	Net investment in Financial assets at amortised cost - Repo	(1,000,000,000)
	Net investment in Financial assets at amortised cost - fixed deposits	(950,637,308)	1,874,411,303
	Proceeds from Debenture Investment		-
	Financial Assets at amortised cost-debenture interest received	-	-
	Investment in Subsidiaries	-	-
	Interest Received	58,207,114	47,715,540
	Dividend Received	-	-
	Net Cash Flows from/(Used in) Investing Activities	(2,125,959,677)	1,355,561,948
	Cash Flows from/(Used in) Financing Activities
	Net Cash Flow from Syndicated Loans and Other Bank Facilities	(141,762,486)	(800,000,000)
	Net Cash Flow from Debt Issued and Other Borrowings	2,100,444,932	(34,483,920)
	Lease Rental Payments	(35,389,904)	-
			-
	Net proceeds from debenture issued	-	-
	Net Cash Flows from/(Used in) Financing Activities	1,923,292,542	(834,483,920)
	Net Increase in Cash and Cash Equivalents	4,371,390,223	(305,625,679)
	Cash and Cash Equivalents at the Beginning of the Period	154,659,913	645,635,660
	Cash and Cash Equivalents at the End of the Period	4,526,050,136	340,009,981
	CASH AND CASH EQUIVALENTS IN THE CASH FLOW STATEMENT
	Notes and Coins Held	206,036,196	115,479,834
	Balances with Banks	4,320,013,940	224,530,147
	Treasury Bills Repurchase Agreements	-	-
	Bank Overdrafts	-	-
	Net Cash and Cash Equivalents	4,526,050,136	340,009,981