LOLC Finance : Interim Financial Statements as of 03/31/2022

INTERIM FINANCIAL

STATEMENTS

For the year ended

31st March 2022

LOLC FINANCE PLC

LOLC Finance PLC

CONTENTS

As at 31st March 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	12
8	Top 20 Shareholders	13

LOLC Finance PLC

STATEMENT OF FINANCIAL POSITION

As at 31st March 2022

	As at 31.03.2022	As at 31.03.2021
	(Unaudited)	(Audited)
	Rs. '000	Rs. '000
ASSETS
Cash and bank balances	12,282,960	13,422,690
Deposits with banks and other financial institutions	8,855,769	7,203,306
Investment in government securities and others	23,841,483	15,838,455
Derivative assets	2,487,385	325,029
Financial assets at amortized cost :
Rentals receivable on leased assets	57,388,553	43,098,407
Loans and advances	149,443,804	61,550,510
Investment securities	8,122,227	5,498,000
Other receivables	2,093,253	731,692
Amount due from related companies	49,031	33,222
Inventories	425,582	271,727
Investment properties	38,287,958	21,088,740
Property plant and equipment	8,326,735	1,163,218
Total assets	311,604,738	170,224,996
LIABILITIES
Bank overdraft	5,675,768	1,861,003
Interest bearing borrowings	44,309,903	16,437,442
Deposits from customers	159,222,296	107,791,136
Trade payables	596,257	144,788
Accruals and other payables	8,447,372	4,557,547
Derivative liabilities	13,176	-
Amount due to related companies	2,071,997	620,862
Current tax payable	2,520,990	857,903
Deferred tax liability	2,974,781	1,733,249
Defined benefit obligations	565,709	332,532
Total liabilities	226,398,250	134,336,462
EQUITY
Stated capital	211,581,448	12,762,500
Statutory reserve	3,596,579	3,596,579
Revaluation reserve	1,505,632	328,838
Cash flow hedge reserve	(83,702)	27,608
Fair Value Reserve	140,753	45,446
Merger Reserve	(167,630,931)	-
Retained earnings	36,096,710	19,127,563
Total equity	85,206,489	35,888,534
Total liabilities and equity	311,604,738	170,224,996
Net asset value per share (Rs.)	4.43	6.84

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 Thilakarathne - Director / CEO	Mr Conrad Dias - Chairman / Non Executive Director

27th May 2022

Rajagiriya (Greater Colombo)

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LOLC Finance PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31st March 2022

	For the period ended		For the quarter ended
	31.03.2022	31.03.2021	Variance	31.03.2022	31.03.2021	Variance
	(Unaudited)	(Audited)		(Unaudited)	(Audited)
	Rs '000	Rs '000	%	Rs '000	Rs '000	%
Interest income	30,859,274	33,920,373	-9%	7,937,847	8,427,642	-6%
Interest expense	(8,979,992)	(12,446,790)	28%	(2,353,190)	(2,572,490)	9%
Net interest income	21,879,282	21,473,583	2%	5,584,658	5,855,153	-5%
Net other operating income	11,219,986	10,139,599	11%	4,845,965	1,204,335	302%
Total income	33,099,269	31,613,182	5%	10,430,623	7,059,488	48%
Operating expenses
Direct expenses excluding interest cost	(863,534)	(950,855)	9%	(272,499)	(250,385)	-9%
Allowance for impairment & write-offs	(2,991,760)	(16,341,362)	82%	(2,145,830)	(4,679,803)	54%
Personnel expenses	(3,564,803)	(3,156,955)	-13%	(1,151,863)	(735,735)	-57%
Depreciation	(207,248)	(131,854)	-57%	(58,843)	(21,837)	-169%
General & administration expenses	(5,891,790)	(5,979,228)	1%	(1,653,190)	(1,597,439)	-3%
Profit from operations	19,580,135	5,052,929	288%	5,148,397	(225,710)	2381%
Value added tax on financial services	(1,837,501)	(556,146)	-230%	64,315	329,214	80%
Profit before income tax expense	17,742,634	4,496,783	295%	5,212,713	103,504	4936%
Income tax expense	(792,048)	(130,845)	-505%	(412,160)	127,602	423%
Profit for the period	16,950,585	4,365,939	288%	4,800,553	231,105	1977%
Other comprehensive income
Items that will never be reclassified to profit or loss
Remeasurements of defined benefit liability - gain / (loss)	24,422	19,845	23%	24,422	64,523	-62%
Related tax	(5,861)	(12,620)	-54%	(5,861)	(25,130)	-77%
	18,561	7,225	157%	18,561	39,394	-53%
Revaluation of property, plant and equipment	1,495,420	96,208	1454%	1,495,420	-	-
Related tax	(318,626)	(8,897)	3481%	(318,626)	-	-
	1,176,794	87,311	1248%	1,176,794	-	-
Movement in fair value - equity investments at FVOCI	95,307	10,711	790%	95,307	10,711	790%
Related tax	-	3,473	-100%	-	3,473	-100%
	95,307	14,185	572%	95,307	14,185	572%
Total of items that will never be reclassified to profit or loss	1,290,662	108,721	1087%	1,290,662	53,578	2309%
Items that are or may be reclassified to profit or loss
Movement in fair value through OCI reserve	-	19,305	-100%	-	-	-
Movement in hedge reserves	(189,254)	130,493	-245%	(185,500)	76,713	-342%
Related tax	77,945	(25,575)	-405%	77,945	(10,517)	-841%
	(111,309)	104,917	-206%	(107,555)	66,196	-262%
Total of items that are or may be reclassified to profit or loss	(111,309)	124,222	-190%	(107,555)	66,196	-262%
Total comprehensive income, net of tax	1,179,352	232,942	406%	1,183,107	119,775	888%
Total comprehensive income for the period	18,129,938	4,598,881	294%	5,983,660	350,880	1605%
Basic earnings per share (Rs.)	3.23	0.83		0.91	0.04

Figures in brackets indicate deductions.

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LOLC Finance PLC

STATEMENT OF CHANGES IN EQUITY

For the year ended 31st March 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 2020	12,762,500	3,378,282	241,528	(77,310)	11,957	-	14,972,696	31,289,653
Total comprehensive income for the period
Profit for the period	-	-	-	-	-	-	4,365,939	4,365,939
Other comprehensive income, net of income tax
Remeasurements of defined benefit liability - gain / (loss)	-	-	-	-	-	-	7,225	7,225
Revaluation gain on property, plant and equipment	-	-	87,311	-	-	-	-	87,311
Revaluation gain on fair value through OCI investments	-	-	-	-	14,185	-	-	14,185
Movement in fair value through OCI reserve	-	-	-	-	19,305	-	-	19,305
Net movement of cashflow hedges	-	-	-	104,917	-	-	-	104,917
Total other comprehensive income for the period	-	-	87,311	104,917	33,489	-	7,225	232,942
Total comprehensive income for the period	-	-	87,311	104,917	33,489	-	4,373,164	4,598,881
Transactions recorded directly in equity
Transfer to Statutory Reserve Fund	-	218,297	-	-	-	-	(218,297)	-
Total transactions recorded directly in equity	-	218,297	-	-	-	-	(218,297)	-
Balance as at 31 March 2021	12,762,500	3,596,579	328,838	27,608	45,446	-	19,127,563	35,888,534
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	-	-	-	-	-	-	16,950,585	16,950,585
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	-	-	-	(111,309)	-	-	-	(111,309)
Total other comprehensive income for the period	-	-	1,176,794	(111,309)	95,307	-	18,561	1,179,352
Total comprehensive income for the period	-	-	1,176,794	(111,309)	95,307	-	16,969,146	18,129,938
Transactions recorded directly in equity
Shares issued during the year	198,818,948	-	-	-	-	-	-	198,818,948
Excess of the investment and other adjustments on merger with subsidiary	-	-	-	-	-	(167,630,931)		(167,630,931)
Total transactions recorded directly in equity	198,818,948	-	-	-	-	(167,630,931)	-	31,188,017
Balance as at 31 March 2022	211,581,448	3,596,579	1,505,632	(83,702)	140,753	(167,630,931)	36,096,709	85,206,488

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