LOLC Finance : Interim Financial Statements as of 06/30/2022

INTERIM FINANCIAL

STATEMENTS

For the three months ended

30th June 2022

LOLC FINANCE PLC

LOLC Finance PLC

CONTENTS

As at 30th June 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 30th June 2022

	As at 30.06.2022	As at 31.03.2022
	(Unaudited)	(Audited)
	Rs. '000	Rs. '000
ASSETS
Cash and bank balances	38,709,760	12,282,960
Deposits with banks and other financial institutions	6,537,261	8,885,611
Investment in government securities and others	37,509,907	23,841,483
Derivative assets	3,305,509	3,450,266
Financial assets at amortized cost :
Rentals receivable on leased assets	54,419,983	56,960,215
Loans and advances	142,439,726	149,849,871
Investment securities	902,523	6,288,566
Investment in associates	3,985,013	1,833,661
Other receivables	3,516,472	47,382
Amount due from related companies	256,403	1,084,330
Inventories	224,997	428,032
Investment properties	40,127,704	38,287,958
Property plant and equipment	8,167,252	8,326,735
Total assets	340,102,511	311,567,068
LIABILITIES
Bank overdraft	6,058,033	5,675,768
Interest bearing borrowings	39,464,920	44,309,903
Deposits from customers	185,466,601	159,252,382
Trade payables	525,340	1,141,928
Accruals and other payables	16,343,791	7,835,593
Derivative liabilities	22,221	13,176
Amount due to related companies	1,155,495	3,719,368
Current tax payable	2,583,225	2,525,556
Deferred tax liability	2,974,781	2,974,781
Defined benefit obligations	576,744	565,709
Total liabilities	255,171,152	228,014,165
EQUITY
Stated capital	211,581,448	211,581,448
Statutory reserve	4,444,108	4,444,108
Revaluation reserve	1,505,632	1,505,632
Cash flow hedge reserve	(83,702)	(83,702)
Fair Value Reserve	135,162	140,753
Merger Reserve	(169,284,517)	(169,284,517)
Retained earnings	36,633,227	35,249,180
Total equity	84,931,359	83,552,903
Total liabilities and equity	340,102,511	311,567,068
Net asset value per share (Rs.)	4.41	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.) P.A. Wijeratne - Independent Director	(Mr.) K Sundararaj - Independent Director
10th Aug 2022
Rajagiriya (Greater Colombo)

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LOLC Finance PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the three months ended 30th June 2022

	For the period ended
	30.06.2022	30.06.2021	Variance
	(Unaudited)	(Unaudited)
	Rs '000	Rs '000	%
Interest income	13,096,097	7,450,421	76%
Interest expense	(6,343,758)	(2,296,303)	-176%
Net interest income	6,752,339	5,154,117	31%
Net other operating income	1,068,418	748,487	43%
Total income	7,820,757	5,902,605	32%
Operating expenses
Direct expenses excluding interest cost	(122,170)	(150,728)	19%
Allowance for impairment & write-offs	(2,101,488)	(2,549,489)	18%
Personnel expenses	(1,381,930)	(829,991)	-66%
Depreciation	(166,124)	(9,293)	-1688%
General & administration expenses	(2,176,276)	(1,396,485)	-56%
Profit from operations before VAT on financial services	1,872,769	966,619	94%
Value added tax on financial services	(452,067)	(289,787)	-56%
Profit from operating activities	1,420,702	676,832	110%
Share of profit of equity accounted investee, net of tax	21,014	-	-
Profit before income tax expense	1,441,716	676,832	113%
Income tax expense	(57,669)	(161,539)	64%
Profit for the period	1,384,047	515,293	169%
Other comprehensive income
Items that are or may be reclassified to profit or loss
Movement in fair value through OCI reserve	(5,591)	-	-
Movement in hedge reserves	-	(3,754)	-100%
Total of items that are or may be reclassified to profit or loss	(5,591)	(3,754)	49%
Total comprehensive income, net of tax	(5,591)	(3,754)	49%
Total comprehensive income for the period	1,378,456	511,539	169%
Basic earnings per share (Rs.)	0.07	0.10

Figures in brackets indicate deductions.

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LOLC Finance PLC

STATEMENT OF CHANGES IN EQUITY

For the three months ended 30th June 2022

	Stated Capital	Statutory	Revaluation	Cash flow	Fair Value	Merger	Retained	Total Equity
		Reserve	Reserve	Hedge Reserve	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	-	-	-	-	-	-	515,293	515,293
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)	-	-	515,293	511,539
Balance as at 30 June 2021	12,762,500	3,596,579	328,838	23,853	45,446	-	19,642,857	36,400,073
Balance as at 01 July 2021	12,762,500	3,596,579	328,838	23,853	45,446	-	19,642,857	36,400,073
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	-	16,435,292	16,435,292
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	-	16,453,853	17,618,399
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	-	-	-	-	-	-	1,384,047	1,384,047
Other comprehensive income, net of income tax
Movement in fair value through OCI reserve	-	-	-	-	(5,591)	-	-	(5,591)
Total other comprehensive income for the period	-	-	-	-	(5,591)	-	-	(5,591)
Total comprehensive income for the period	-	-	-	-	(5,591)	-	1,384,047	1,378,456
Balance as at 30 June 2022	211,581,448	4,444,108	1,505,632	(83,702)	135,162	(169,284,517)	36,633,227	84,931,359

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