Dialog Finance : Quarterly Financial Report as of 30-09-2022

DIALOG FINANCE PLC

CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED

30 SEPTEMBER 2022

Confidential

		Page 1
DIALOG FINANCE PLC
Statement of financial position
(all amounts in Sri Lanka Rupees thousands)
	30 Sep 2022	31 Dec 2021
	(Unaudited)	(Audited)
ASSETS
Cash and cash equivalents	82,552	136,222
Placements with banks and financial institutions	2,284,456	-
Securities purchased under repurchase agreements	224,912	194,641
Financial assets at fair value through profit or loss	3,896	1,919
Financial assets at amortised cost - loans and advances	3,055,661	2,742,531
Financial assets at fair value through other comprehensive income	2,101	2,101
Financial investments at amortised cost	374,507	597,106
Other assets	48,212	33,981
Current tax receivable	6,255	6,255
Right-of-use assets	12,727	17,601
Property, plant and equipment	53,028	60,807
Intangible assets	115,695	104,823
Deferred tax assets	123,393	123,393
Total assets	6,387,395	4,021,380
LIABILITIES
Financial liabilities at amortised cost - due to customers	3,664,916	1,323,916
Retirement benefit obligations	9,261	7,258
Lease liabilities	15,573	20,142
Other liabilities	107,062	133,269
Total liabilities	3,796,812	1,484,585
EQUITY
Stated capital	2,934,582	2,934,582
Statutory reserve fund	11,361	11,361
Fair value through other comprehensive income reserve	1,580	1,580
Accumulated losses	(356,940)	(410,728)
Total equity	2,590,583	2,536,795
Total equity and liabilities	6,387,395	4,021,380
Net assets per share (Rs.)	22.07	21.61
Commitments and contingencies	577,651	378,648

The notes on pages 5 to 10 form an integral part of these financial statements.

CERTIFICATION

We certify that the above Interim Financial Statements are in compliance with the requirements of the Companies Act No: 7 of 2007 and give true and fair view of the state of affairs of Dialog Finance PLC as at 30 September 2022 and its profit/(loss) for the period ended 30 September 2022.

Signed	Signed
………………………….	………………………...
Head of Finance	Chief Executive Officer
Date: 14/11/2022	Date: 14/11/2022

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,

Signed	Signed
…………………………	…………………………
Director	Director
Date: 14/11/2022	Date: 14/11/2022

Confidential

Page 2

DIALOG FINANCE PLC

Statement of profit or loss and other comprehensive income

(all amounts in Sri Lanka Rupees thousands)
	Nine months ended 30 September	Three months ended 30 September
2022	2021	Change	2022	2021	Change
	(Unaudited)	(Unaudited)	%	(Unaudited)	(Unaudited)	%

Interest income

Less: Interest expense

Net interest income

Fee and commission income

Net gains from trading Other operating income

Total operating income Less: Impairment charges and

other losses

Net operating income

Less: Operating expenses Personnel expenses Depreciation and amortisation Other expenses

Operating profit/(loss) before taxes on financial services

Value added Tax (VAT) on financial services

Profit/(Loss) before tax for the period

Income tax expense

Profit/(Loss) for the period

Other comprehensive income Items that will not be

reclassified to profit or loss:

Changes in the fair value of equity investments at fair value through other comprehensive income

Remeasurement of defined benefit Obligations Deferred tax effect on other comprehensive income

Other comprehensive income, net of tax

Total comprehensive income for the period, net of tax

631,743	172,103	267	304,115	65,103	367
(212,034)	(42,129)	403	(124,246)	(14,356)	765
419,709	129,974	223	179,869	50,747	254
9,255	3,813	143	4,423	2,354	88
1,977	171	1,056	2,449	528	364
25,300	2,888	776	5,650	398	1,320
456,241	136,846	233	192,391	54,027	256
(51,973)	(9,336)	457	(35,107)	(6,094)	476
404,268	127,510	217	157,284	47,933	228
(139,767)	(86,541)	62	(51,585)	(37,737)	37
(35,383)	(32,180)	10	(12,098)	(10,663)	13
(141,715)	(77,359)	83	(57,645)	(28,548)	102
87,403	(68,570)	(227)	35,956	(29,015)	(224)
(33,615)	(1,160)	2,798	(12,895)	(457)	2,722
53,788	(69,730)	(177)	23,061	(29,472)	(178)
-	-	-	-	-	-
53,788	(69,730)	(177)	23,061	(29,472)	(178)

	-	-			-
	-	-			-
	-	-			-
	-	-			-
53,788	(69,730)	(177)	23,061	(29,472)	(178)

Profit/(Loss) per share (Rs.)

0.46

(0.64)

0.20

(0.27)

The notes on pages 5 to 10 form an integral part of these financial statements.

Confidential

Page 3

DIALOG FINANCE PLC

Statement of changes in equity

(all amounts in Sri Lanka Rupees thousands)

		Retained		Fair value
		earnings /	Statutory	through other	Share
	Stated	accumulated	reserve	comprehensive	Pending
	capital	losses	fund	income reserve	allotment	Total
Balance at 1 January 2022	2,934,582	(410,728)	11,361	1,580	-	2,536,795
Profit for the period	-	53,788	-	-	-	53,788
Other comprehensive income,	-	-	-	-		-
net of tax
Total comprehensive income	-	53,788	-	-	-	53,788
for the period

Balance at 30 September 2022

Balance at 1 January 2021

Loss for the period

Other comprehensive income, net of tax

Total comprehensive income for the period

Shares pending allotment

Balance at 30 September 2021

Balance at 1 October 2021

Loss for the period

Other comprehensive income, net of tax

Total comprehensive income for the period

Shares pending allotment Rights issue during the period Rights issue expenses

Balance at 31 December 2021

2,934,582	(356,940)	11,361	1,580	-	2,590,583
2,374,509	(333,575)	11,361	1,577	-	2,053,872
-	(69,730)	-	-	-	(69,730)
-	-	-	-	-	-
-	(69,730)	-	-	-	(69,730)
-	-	-	-	560,073	560,073
2,374,509	(403,305)	11,361	1,577	560,073	2,544,215
2,374,509	(403,305)	11,361	1,577	560,073	2,544,215
-	(7,511)	-	-	-	(7,511)
-	1,352	-	3	-	1,355
-	(6,159)	-	3	-	(6,156)
				(560,073)	(560,073)
560,073	-	-	-	-	560,073
-	(1,264)	-	-	-	(1,264)
2,934,582	(410,728)	11,361	1,580	-	2,536,795

The notes on pages 5 to10 form an integral part of these financial statements.

Confidential

DIALOG FINANCE PLC

Statement of cash flows

(all amounts in Sri Lanka Rupees thousands)

Cash flows from operating activities

Profit/(loss) before income tax

Adjustments for Interest expenses

Impairment charges and other losses Provision for retirement benefit obligation Depreciation and amortization

Interest on lease liability

Net gains on financial assets at fair value through profit or loss

Cash generated from operations before working capital changes

(Increase) in loans and advances (Increase)/ decrease in other assets Increase in amounts due to customers (Decrease)/ increase in trade and other payables

Cash generated from/ (used in) operations

Interest paid

Retirement benefits paid

Net cash generated from/ (used in) operating activities Cash flows from investing activities

Acquisition of property, plant and equipment Acquisition of intangible assets

Net investment in treasury bills

Net placement with financial institutions

Net cash flows from securities purchased under repurchased agreement

Net cash generated from/(used in) investing activities

Cash flows from financing activities

Net proceeds from rights issue

Principle element of lease payment

Net cash (used in)/ generated from financing activities

Net increase/ (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

Analysis of cash and cash equivalents at the end of the period

Cash and bank balances

Add: Placements with financial Institutions (less than 90 days)

Less: Impairment provision

The notes on pages 5 to10 form an integral part of these financial statement

Page 4

Nine months ended 30

September

20222021

(Unaudited) (Unaudited)

53,788 (69,730)

212,03442,129

51,9739,336

3,1983,187

35,38332,180

1,4251,887

(1,977)(171)

355,824 18,818

(365,308) (1,046,580)

(13,144) 115,301

2,340,999 113,996

(28,052)31,864

2,290,319 (766,601)

(212,034) (40,449)

(1,195)(793)

2,077,090 (807,843)

(14,568)(2,653)

(19,034) (11,547)

222,600198

--

(30,273)4,823

158,725 (9,179)

• 560,073
  (4,569)(3,397)
  (4,569) 556,676

2,231,246 (260,346)

136,262 1,811,882

2,367,508 1,551,536

82,575 1,250,468

2,284,933 301,068

2,367,508 1,551,536

1. (358)
   2,367,008 1,551,178

Confidential