LB Finance : Annual Report 2021-22

EMPOWERING THE JOURNEYS OF MANY

At L B Finance PLC, we believe that no journey can be undertaken alone. Over the years, even as we made new strides in the industry and achieved unmatched progress, we continued to value and nurture the partnerships we made along the way; driving the collective development of the individuals and communities that surrounded us, through a spirit of collaboration that ensured mutual growth.

Today, as we venture into the future, we reinforce our pledge to strengthen and prioritise the needs of the many stakeholders that have contributed towards our success story. We are focused on inspiring every individual who partners with us to embark on a path filled with infinite possibilities. We are doing far more than simply advancing steadily towards our goals. We are also enabling the countless lives we impact to experience the life they envision for themselves; assisting them to achieve their aspirations both now, and in the years ahead.

Read on, and discover how L B Finance is built on a foundation designed to empower the journeys of many.

OUR REPORTING SUITE

LBF's 2021/22 Integrated Report is complemented by numerous publications and other information, which can be accessed through our website www.lbfinance.com.

For ease of access, we have grouped these supplemental reports into three distinct publications as shown below. Taken together, these publications form part of us, represent our comprehensive integrated reporting suite.

Integrated

Sustainability

Risk and

Report

Report

Governance

Report

ONLINE AND WEB DISCLOSURES

To assist in the reduction of the Company's carbon footprint, we urge our stakeholders to make use of our comprehensive reporting suite by using the link www. lbfinance.lk reporting or scanning the QR code shown to be directed to the page

FORWARD LOOKING STATEMENTS

This Integrated Annual Report may contain forward-looking statements with respect to the LBF Group's future performance and prospects. While these statements reflect our future expectations at the time of publishing, it is important to remain mindful that a number of risks, uncertainties and other important factors could cause actual results to differ materially from our expectations. Hence, the LBF Group does not accept any obligation to revise or update at a later date, the information expressed in these forward-looking statements

BOARD RESPONSIBILITY STATEMENT

The L B Finance PLC Board has applied its collective knowledge and expertise to ensure the integrity of the 2021/22 Integrated Report as well as any supplementary information referenced therein. The Board has considered the completeness

of the material aspects addressed in the report, and the reliability of financial and non-financial information presented based on the combined assurance process outlined above.

On this basis, the Board is satisfied that the 2021/22 Integrated Report provides a fair and accurate representation of the performance of the LBF Group for the year under review. Further the Board is of the view that the report confirms to the guidelines set out under the International Integrated Reporting Framework. The 2021/22 Integrated Report was approved by the Board and signed on its behalf by:

G A R D Prasanna	J A S Sumith Adhihetty
Chairman	Managing Director

CONTENTS

Initiatives - First time in Sri Lanka	4 - 5
About Our Integrated Report	6 - 8
How to read our report	9 - 13
Awards and Accolades	14

Section 1

About us - Our profile ..........................	16 - 19
Strategic journey....................................	20 - 21
Our contribution to the economy......	22 - 26

Section 2

Financial highlights.................................	28 - 29
Non-financial highlights........................	30 - 31
Chairman's statement ..........................	32 - 35
Managing Director's reviews...............	36 - 39
Board of Directors.................................	40 - 45
Senior Management .............................	46 - 47
Our carbon journey.......................................	48

For the first time in Sri Lanka, L B Finance offers its annual report readers a unique experience, with a range of interactive content to choose from.

Section 3

Management Discussion and Analysis

Our operating context..........................

50 - 63

Our value creation business model... 64 - 67 Integrated stakeholder engagement.68 - 81

Our material matters in action...........	82	- 91
Strategic road map...............................	92 -101
Business line review..........................	102 -114
Business analysis of Subsidiary .....	115 -118
Capital management reports
Financial Capital.................................	120 - 147
Manufactured Capital.......................	148 - 157
Human Capital...................................	158 - 171
Intellectual Capital.............................	172 - 183
Social and Relationship Capital......	184 - 211
Natural Capital...................................	212 - 222

SCAN THE QR CODES FEATURED HERE TO FIND OUT MORE

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Our corporate governance

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Our business performance - Investing

Our digital financing performance

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Scan QR code to view this report online or visit https://sustainability.lbfinance.com/

Section 4

7th Section

Corporate Governance
- Chairman's statement .............................	224
Corporate Governance Report......	225 - 243
Annual Report of the
Board of Directors on the
Affairs of the Company....................	244 - 251
Board Sub Committee Reports
Remuneration Committee Report...........	252

Section 6
Financial Statement Highlights......	294 - 295
Financial Calendar........................................	296
Independent Assurance Report to the
Board of Directors...................................	297
Directors' Responsibility Statement on
Internal Control over
Financial Reporting.......................	298 - 299
Directors' Responsibility to
Financial Reporting..................................	300

Nomination Committee Report................	253
Board Audit Committee Report.....	254 - 256
Board Integrated Risk Management
Committee Report............................	257 - 259
Related Party Transactions
Review Committee............................	260 - 261
Summarised
Risk Management Report................	262 - 266

Section 5

Sustainability at LBF..........................	268	- 277
Consolidated Set of IR Standards. 277 - 285
Reporting on
Anti-corruption programmes ........	286 - 288
IR Assurance Report.........................	289 - 290
GRI Assurance Report......................	291 - 292

Independent Auditors' Report.......	301	- 304
Income Statement.......................................	305
Statement of
Comprehensive Income.........................	306
Statement of Financial Position................	307
Statement of Changes in Equity....	308	- 309
Statement of Cash Flows.................	310	- 311
Notes to the
Financial Statements....................	312	- 424

Decade at a Glance...........................	426 - 427
Quarterly Financial
Statements 2021/22.........................	428 - 429
Income Statement (US Dollars).................	430
Statement of Comprehensive
Income (US Dollars).................................	431
Statement of
Financial Position (US Dollars)...................	432
List of Abbreviations....................................	433
Glossary of Terms...............................	434-437
Corporate Information.......................	438-439
Notice of Annual General Meeting	..........440
Form of Proxy................................................	441
Feedback Form
- Annual Report 2021/22.......................	443

Our strategic direction

Our business performance - Financing

Our risk management oversight

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Our IT support for business operations

Our financial performances

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