LOLC Finance : INTERIM FINANCIAL STATEMENTS AS OF 12/31/2022

INTERIM FINANCIAL

STATEMENTS

For the nine months ended

31st December 2022

LOLC FINANCE PLC

LOLC Finance PLC

CONTENTS

As at 31st December 2022

		Page
1	Statement of Financial Position	1
2	Statement of Profit or Loss and Other Comprehensive Income	2
3	Statement of Changes in Equity	3
4	Statement of Cash flows	4
5	Operating Segments	5
6	Notes to the Interim Financial Statements	6
7	Statement of Directors' and Chief Executive Officer's holding in Shares of the Entity	11
8	Top 20 Shareholders	12

LOLC Finance PLC

STATEMENT OF FINANCIAL POSITION

As at 31st December 2022

	As at 31.12.2022	As at 31.03.2022
	(Unaudited)	(Audited)
	Rs. '000	Rs. '000
ASSETS
Cash and bank balances	3,761,876	12,282,960
Deposits with banks and other financial institutions	2,767,389	8,885,611
Investment in government securities and others	33,091,243	23,841,483
Derivative assets	662,114	3,450,266
Financial assets at amortized cost :
Rentals receivable on leased assets	51,537,265	56,960,215
Loans and advances	183,481,128	149,849,871
Investment securities	430,893	6,288,566
Investment in associates	3,700,677	1,833,661
Other receivables	8,169,854	47,382
Amount due from related companies	146,062	1,084,330
Inventories	147,445	428,032
Investment properties	41,763,950	38,287,958
Property plant and equipment	10,509,766	8,326,735
Total assets	340,169,664	311,567,068
LIABILITIES
Bank overdraft	10,337,430	5,675,768
Interest bearing borrowings	35,698,738	44,309,903
Deposits from customers	185,064,811	159,252,382
Trade payables	332,094	1,141,928
Accruals and other payables	5,544,030	7,835,593
Derivative liabilities	10,698	13,176
Amount due to related companies	2,357,802	3,719,368
Current tax payable	2,807,164	2,525,556
Deferred tax liability	3,184,283	2,974,781
Defined benefit obligations	616,318	565,709
Total liabilities	245,953,368	228,014,165
EQUITY
Stated capital	211,581,448	211,581,448
Statutory reserve	4,444,108	4,444,108
Revaluation reserve	1,318,935	1,505,632
Cash flow hedge reserve	(114,881)	(83,702)
Fair Value Reserve	129,454	140,753
Merger Reserve	(169,284,517)	(169,284,517)
Retained earnings	46,141,749	35,249,180
Total equity	94,216,296	83,552,903
Total liabilities and equity	340,169,664	311,567,068
Net asset value per share (Rs.)	4.89	4.34

Certification :

These financial statements have been prepared in compliance with the requirements of the Companies Act No. 7 of 2007.

Sgd.

……………………………..

(Mr.) Buddhika Weeratunga

Head of Finance

The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board

Sgd.	Sgd.
……………………………..	………………………………...
(Mr.) Krishan Thilakaratne - Director / CEO	(Mrs.) K.U. Amarasinghe - Executive Director
14th February 2023
Rajagiriya (Greater Colombo)

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LOLC Finance PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the nine months ended 31st December 2022

	For the period ended			For the quarter ended
	31.12.2022	31.12.2021	Variance	31.12.2022	31.12.2021	Variance
	(Unaudited)	(Unaudited)			(Unaudited)	(Unaudited)
	Rs '000	Rs '000	%		Rs '000	Rs '000	%
Interest income	48,685,520	22,921,427	112%		18,193,282	7,929,390	129%
Interest expense	(25,337,891)	(6,626,802)	-282%		(9,752,762)	(2,161,230)	-351%
Net interest income	23,347,629	16,294,625	43%		8,440,520	5,768,160	46%
Net other operating income	9,301,794	6,386,896	46%		6,162,075	4,774,748	29%
Total income	32,649,423	22,681,521	44%		14,602,596	10,542,908	39%
Operating expenses
Direct expenses excluding interest cost	(537,582)	(591,035)	9%		(254,869)	(246,270)	-3%
Allowance for impairment & write-offs	(6,269,930)	(845,930)	-641%		(1,058,565)	1,979,159	153%
Personnel expenses	(3,925,851)	(2,412,939)	-63%		(1,279,450)	(838,200)	-53%
Depreciation	(481,221)	(148,405)	-224%		(152,175)	(60,573)	-151%
General & administration expenses	(7,962,672)	(4,251,474)	-87%		(2,916,960)	(1,511,834)	-93%
Profit from operations before VAT on financial services	13,472,168	14,431,737	-7%		8,940,576	9,865,189	9%
Value added tax on financial services	(2,043,798)	(1,901,816)	-7%		(917,295)	(1,247,328)	26%
Profit from operating activities	11,428,369	12,529,921	-9%		8,023,281	8,617,861	-7%
Share of profit of equity accounted investee	(263,322)	-	-		(177,897)	-	-
Profit before income tax expense	11,165,047	12,529,921	-11%		7,845,384	8,617,861	-9%
Income tax expense	(281,608)	(379,888)	26%		(148,896)	319,013	147%
Profit for the period	10,883,439	12,150,033	-10%		7,696,488	8,936,874	-14%
Other comprehensive income
Items that will never be reclassified to profit or loss
Related tax on remeasurements of defined benefit liability	9,129	-	-		9,129	-	-
Related tax on revaluation of property, plant and equipment	(186,697)	-	-		(186,697)	-	-
Total of items that will never be reclassified to profit or loss	(177,568)	-	-		(177,568)	-	-
Items that are or may be reclassified to profit or loss
Movement in fair value through OCI reserve	(10,545)	-	-		(1,776)	-	-
Related tax	(755)	-	-		(755)		-
	(11,299)	-	-		(2,531)	-	-
Movement in hedge reserves	-	(3,754)	-100%		-	-	-
Related tax on movement in hedge reserves	(31,179)	-	-		(31,179)	-	-
	(31,179)	(3,754)	730%		(31,179)	-	-
Total of items that are or may be reclassified to profit or loss	(42,478)	(3,754)	1031%		(33,710)	-	-
Total other comprehensive income, net of tax	(220,046)	(3,754)	5761%		(211,277)	-	-
Total comprehensive income for the period	10,663,393	12,146,278	-12%		7,485,211	8,936,874	-16%
Basic earnings per share (Rs.)	0.57	2.31			0.40	1.70

Figures in brackets indicate deductions.

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LOLC Finance PLC

STATEMENT OF CHANGES IN EQUITY

For the nine months ended 31st December 2022

	Stated Capital	Statutory	Revaluation	Cash flow	Fair Value	Merger Reserve	Retained	Total Equity
		Reserve	Reserve	Hedge Reserve	Reserve		Earnings
	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000
Balance as at 01 April 2021	12,762,500	3,596,579	328,838	27,608	45,446	-	19,127,563	35,888,534
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	-	12,150,033	12,150,033
Other comprehensive income, net of income tax
Net movement of cashflow hedges	-	-	-	(3,754)	-	-	-	(3,754)
Total other comprehensive income for the period	-	-	-	(3,754)	-	-	-	(3,754)
Total comprehensive income for the period	-	-	-	(3,754)	-	-	12,150,033	12,146,278
Balance as at 31 December 2021	12,762,500	3,596,579	328,838	23,853	45,446	-	31,277,596	48,034,812
Balance as at 01 January 2022	12,762,500	3,596,579	328,838	23,853	45,446	-	31,277,596	48,034,812
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	-	4,800,553	4,800,553
Other comprehensive income, net of income tax
Remeasurements of defined benefit liability - gain / (loss)	-	-	-	-	-	-	18,561	18,561
Revaluation gain on property, plant and equipment	-	-	1,176,794	-	-	-	-	1,176,794
Revaluation gain on fair value through OCI investments					95,307	-	-	95,307
Net movement of cashflow hedges	-	-	-	(107,555)	-	-	-	(107,555)
Total other comprehensive income for the period	-	-	1,176,794	(107,555)	95,307	-	18,561	1,183,107
Total comprehensive income for the period	-	-	1,176,794	(107,555)	95,307	-	4,819,114	5,983,660
Transactions recorded directly in equity
Shares issued during the year	198,818,948	-	-	-	-	-	-	198,818,948
Transfer to Statutory Reserve Fund	-	847,529	-	-	-	-	(847,529)	-
Excess of the investment and other adjustments on merger with subsidiary	-	-	-	-	-	(169,284,517)	-	(169,284,517)
Total transactions recorded directly in equity	198,818,948	847,529	-	-	-	(169,284,517)	(847,529)	29,534,431
Balance as at 31 March 2022	211,581,448	4,444,108	1,505,632	(83,702)	140,753	(169,284,517)	35,249,180	83,552,903
Balance as at 01 April 2022	211,581,448	4,444,108	1,505,632	(83,702)	140,753	(169,284,517)	35,249,180	83,552,903
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	-	10,883,439	10,883,439
Other comprehensive income, net of income tax
Remeasurements of defined benefit liability - gain / (loss)	-	-	-	-	-	-	9,129	9,129
Revaluation gain on property, plant and equipment	-	-	(186,697)	-	-	-	-	(186,697)
Movement in fair value through OCI reserve	-	-	-	-	(11,299)	-	-	(11,299)
Net movement of cashflow hedges	-	-	-	(31,179)	-	-	-	(31,179)
Total other comprehensive income for the period	-	-	(186,697)	(31,179)	(11,299)	-	9,129	(220,046)
Total comprehensive income for the period	-	-	(186,697)	(31,179)	(11,299)	-	10,892,569	10,663,393
Balance as at 31 December 2022	211,581,448	4,444,108	1,318,935	(114,881)	129,454	(169,284,517)	46,141,749	94,216,296

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