Dialog Finance : Quarterly Financial Report as of 31-12-2022

DIALOG FINANCE PLC

CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED

31 DECEMBER 2022

		Page 1
DIALOG FINANCE PLC
Statement of financial position
(all amounts in Sri Lanka Rupees thousands)
	31 Dec 2022	31 Dec 2021
	(Unaudited)	(Audited)
ASSETS
Cash and cash equivalents	170,399	136,222
Placements with banks and financial institutions	2,427,981	-
Securities purchased under repurchase agreements	288,795	194,641
Financial assets at fair value through profit or loss	2,866	1,919
Financial assets at amortised cost - loans and advances	3,056,448	2,742,531
Financial assets at fair value through other comprehensive income	2,120	2,101
Financial investments at amortised cost	221,329	597,106
Other assets	46,730	33,981
Current tax receivable	6,255	6,255
Right-of-use assets	11,102	17,601
Property, plant and equipment	53,980	60,807
Intangible assets	173,171	104,823
Deferred tax assets	123,450	123,393
Total assets	6,584,626	4,021,380
LIABILITIES
Financial liabilities at amortised cost - due to customers	3,786,922	1,323,916
Retirement benefit obligations	8,989	7,258
Lease liabilities	13,833	20,142
Other liabilities	171,113	133,269
Total liabilities	3,980,857	1,484,585
EQUITY
Stated capital	2,934,582	2,934,582
Statutory reserve fund	14,716	11,361
Fair value through other comprehensive income reserve	1,596	1,580
Accumulated losses	(347,125)	(410,728)
Total equity	2,603,769	2,536,795
Total equity and liabilities	6,584,626	4,021,380
Net assets per share (Rs.)	22.18	21.61
Commitments and contingencies	505,052	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 31 December 2022 and its profit/(loss) for the period ended 31 December 2022.

Signed	Signed
Head of Finance	Chief Executive Officer
Date: 09/02/2023	Date: 09/02/2023

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: 09/02/2023	Date: 09/02/2023

Page 2

DIALOG FINANCE PLC

Statement of profit or loss and other comprehensive income

(all amounts in Sri Lanka Rupees thousands)

	Year ended 31 December	Three months ended 31 December
	2022	2021	Change	2022	2021	Change
	(Unaudited)	(Audited)	%	(Unaudited)	(Unaudited)	%
Interest income	984,853	261,067	277	353,110	88,964	297
Less: Interest expense	(359,526)	(56,629)	535	(147,492)	(14,500)	917
Net interest income	625,327	204,438	206	205,618	74,464	176
Fee and commission income	15,116	5,214	190	5,861	1,401	318
Net gains from trading	947	406	133	(1,030)	235	(538)
Other operating income	26,190	3,741	600	889	853	4
Total operating income	667,580	213,799	212	211,338	76,953	175
Less: Impairment charges and
other losses	(84,884)	(10,247)	728	(32,911)	(911)	3,513
Net operating income	582,696	203,552	186	178,427	76,042	135
Less: Operating expenses
Personnel expenses	(208,444)	(123,319)	69	(68,677)	(36,778)	87
Depreciation and amortisation	(46,250)	(43,256)	7	(10,867)	(11,076)	(2)
Other expenses	(212,729)	(109,529)	94	(71,012)	(32,170)	121
Operating profit/(loss) before	115,273	(72,552)	(259)	27,871	(3,982)	(800)
taxes on financial services
Taxes on financial services	(48,177)	(4,689)	927	(14,563)	(3,529)	313
Profit/(Loss) before tax for the	67,096	(77,241)	(187)	13,308	(7,511)	(277)
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

67,096

(77,241)

(187)

13,308

(7,511)

(277)

19	3	547	19	3	547
(198)	1,779	(111)	(198)	1,779	(111)
57	(427)	(113)	57	(427)	(113)
(122)	1,355	(109)	(122)	1,355	(109)
66,974	(75,886)	(188)	13,186	(6,156)	(314)

Profit/(Loss) per share (Rs.)

0.57

(0.70)

0.11

(0.06)

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

Page 3

DIALOG FINANCE PLC

Statement of changes in equity
(all amounts in Sri Lanka Rupees thousands)
			Retained		Fair value through
			earnings /	Statutory	other
		Stated	accumulated	reserve	comprehensive
		capital	losses	fund	income reserve	Total
Balance at 1 January 2022	2,934,582	(410,728)	11,361	1,580	2,536,795
Profit for the year		-	67,096	-	-	67,096
Other comprehensive income, net of		-	(138)	-	16	(122)
tax
Transfer to Statutory reserve fund		-	(3,355)	3,355	-	-
Total comprehensive income for	-	63,603	3,355	16	66,974
the year
Balance at 31 December 2022	2,934,582	(347,125)	14,716	1,596	2,603,769

Balance at 1 January 2021

Loss for the year

Other comprehensive income, net of tax

Total comprehensive income for the year

2,374,509	(333,575)	11,361	1,577	2,053,872
-	(77,241)	-	-	(77,241)
-	1,352	-	3	1,355
-	(75,889)	-	3	(75,886)

Rights issue during the year	560,073	-	-	-	560,073
Rights issue expenses	-	(1,264)	-	-	(1,264)
Balance at 31 December 2021	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.

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 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 year

Cash and cash equivalents at the end of the year

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

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

Year ended 31 December

20222021

(Unaudited) (Audited)

67,096 (77,241)

359,52656,629

84,88410,247

2,7271,860

46,25043,256

1,8142,441

1. (406)
   561,350 36,786

(348,522) (1,936,199)

(12,807) 160,863

2,463,006 259,741

31,53552,665

2,694,562 (1,426,144)

(383,416) (62,798)

(1,195)(1,251)

2,309,951 (1,490,193)

(12,814)(3,233)

(88,458) (21,900)

363,278 (594,920)

698-

(101,674) (116,919)

161,030 (736,972)

• 558,809
  (8,123)(7,265)
  (8,123) 551,544

2,462,858 (1,675,621)

136,261 1,811,882

2,599,119 136,361

170,440 136,361

2,428,679-

2,599,119 136,361

1. (39)
   2,598,380 136,322