Multi Finance : Interim Financial Statement as at 31st December 2021

INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED 31ST DECEMBER 2021

MULTI FINANCE PLC

( Company Registration No: PB 891 PQ )

The Fairways, No.100, Buthgamuwa road, Rajagiriya.

MULTI FINANCE PLC

INTERIM FINANCIAL STATEMENTS

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		FOR THE THREE MONTHS ENDED		FOR THE NINE MONTHS ENDED
		31.12.2021	31.12.2020	Variance		31.12.2021		31.12.2020	Variance
				Fav/					Fav/
		(Unaudited)	(Unaudited)	(Adverse)		(Unaudited)		(Unaudited)	(Adverse)
		Rs.	Rs.	%		Rs.		Rs.	%
Income		29,965,845	34,977,027	(14)		88,871,303		100,862,758	(12)
Interest income		23,985,587	30,300,132	(21)		74,153,077	86,858,633	(15)
Interest expenses		(5,906,940)	(9,462,875)	38		(19,414,658)		(34,496,034)	44
Net interest income		18,078,647	20,837,257	(13)		54,738,419	52,362,600	5
Fee and commission income		3,120,226	1,107,648	182		7,961,387	5,897,603	35
Other income		2,860,033	3,569,246	(20)		6,756,839		8,106,522	(17)
Net income from operations		24,058,905	25,514,151	(6)		69,456,645	66,366,725	5
Operating expenses
Personnel cost		(17,929,135)	(21,031,974)	15		(55,037,670)	(61,386,873)	10
Depreciation of Property Plant & Equipments and amortisation	of	(2,219,372)	(2,561,192)	13		(6,939,552)	(8,192,340)	15
Intangible Assets
Amortization of Leased Assets		(3,877,837)	(3,584,087)	(8)		(11,633,510)	(10,803,764)	(8)
Other operating expenses		(9,184,739)	(9,699,460)	5		(28,074,165)		(28,153,421)	0.3
Total operating expenses		(33,211,083)	(36,876,713)	10		(101,684,897)		(108,536,398)	6
Profit/(Loss) before impairment and taxation		(9,152,177)	(11,362,561)	19		(32,228,252)	(42,169,674)	24
Impairment (charge)/reversal for loans and other losses		2,268,042	(1,874,665)	221		(6,209,572)		3,363,748	(285)
Profit/(Loss) before taxation and VAT on Financial Services		(6,884,135)	(13,237,227)	48		(38,437,824)	(38,805,925)	1
Tax on Financial Services		(1,756,501)	(1,423,291)	(23)		(2,363,715)		(1,423,291)	(66)
Profit/(Loss) before taxation		(8,640,636)	(14,660,518)	41		(40,801,539)	(40,229,217)	(1)
Income Tax (Expense)/Reversal		-	-	-		-	-	-
Profit/(Loss) for the period		(8,640,636)	(14,660,518)	41		(40,801,539)	(40,229,217)	(1)
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of retirement benefit obligation		-	-	-		-	-	-
Tax on actuarial gain		-	-	-		-		-	-
		-	-	-		-	-	-
Items that are or may be reclassified subsequently to profit or loss
Reclassification of Fair Value Through Other comprehensive income to	-	-	-		(50,308)	-	(100)
Profit or Loss
Net change/(Loss) in fair value of financial assets measured at Fair Value	-	-	-		-	-	-
Through Other Comprehensive Income
		-	-	-		(50,308)		-	(100)
Other comprehensive income for the period, net of tax		-	-	-		(50,308)	-	(100)
Total comprehensive income / (expense) for the period		(8,640,636)	(14,660,518)	41		(40,851,847)		(40,229,217)	(2)
Earnings/(Loss) per share (Rs.)		(0.14)	(0.23)			(0.64)	(0.63)

Figures in brackets indicate deductions.

1

MULTI FINANCE PLC

INTERIM FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION	As at 31.12.2021		As at 31.03.2021
	Rs.		Rs.
	(Unaudited)		(Audited)
	Rs.		Rs.
ASSETS
Cash and cash equivalents	16,287,355	23,195,923
Placements with Banks and other financial institutions	115,422,057	119,229,696
Rental receivable on Lease	85,859,365	155,459,039
Rental receivable on Hire Purchase	110,400	151,434
Advances and Other Loans	408,528,619	400,621,794
Other receivables	52,280,143	53,372,287
Repossessed Stock	-	4,090,270
Income tax receivables	5,227,629	5,227,631
Financial Assets Measured at Fair Value Through Other	2,500	535,489
Comprehensive Income
Investment Property	68,333,000	68,333,000
Property, plant & equipment	5,380,671	11,999,774
Right of use Assets	15,706,057	27,402,094
Intangible assets	83,349		524,860
TOTAL ASSETS	773,221,145	870,143,291
LIABILITIES
Due to banks and financial institutions	2,065,315	3,128,745
Deposits due to customers	253,339,217	294,272,187
Other payables	38,418,786	41,641,352
Lease Liability	17,343,978	28,746,608
Retirement benefit obligation	9,053,707		8,502,410
TOTAL LIABILITIES	320,221,003	376,291,302
EQUITY
Stated capital	898,375,289	898,375,289
Statutory Reserve Fund	5,389,222	5,389,222
General Reserve	11,266,050	11,266,050
Fair Value Reserve	-	50,308
Retained Earnings / (Accumulated Lossess)	(462,030,419)		(421,228,880)
TOTAL EQUITY	453,000,142	493,851,989
TOTAL LIABILITIES AND EQUITY	773,221,145		870,143,291
Net Assets Value Per Share (Rs.)	7.12	7.76

Figures in brackets indicate deductions.

It is certified that these Financial Statements have been prepared in compliance with the requirements of the Companies Act No.7 of 2007.

Sgd.

Mr. A. M. Galbadaarachchi

Chief Financial Officer

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 of Multi Finance PLC

Sgd.	Sgd.
Mr. P. Jayasundera	Imal Fonseka
Director / Chief Executive Officer	Chairman
26th Jan 2022
Colombo

2

MULTI FINANCE PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS ENDED 31ST DEC 2021

	Stated		Statutory		General		Fair Value		Retained		Total
	Capital		Reserve Fund		Reserve		Reserve		Earnings/
									(Accumulated
									Losses)
	Rs.		Rs.		Rs.		Rs.		Rs.		Rs.
Balance as at 01st April 2020	898,375,289	5,389,222	11,266,050	247,199	(338,127,145)	577,150,615
Loss for the Period	-	-	-	-	(40,229,217)	(40,229,217)

Other comprehensive income net of tax for the year

Reclassification of Fair Value Through Other comprehensive income to Profit or Loss

Balance as at 31st Dec 2020

Balance as at 01st April 2021

Loss for the Period

Other comprehensive income net of tax for the year

Reclassification of Fair Value Through Other comprehensive income to Profit or Loss

-	-	-	-	-	-
898,375,289		5,389,222		11,266,050		247,199		(378,356,362)		536,921,399
898,375,289	5,389,222	11,266,050	50,308	(421,228,880)	493,851,989
-	-	-	-	(40,801,539)	(40,801,539)
-	-	-	(50,308)	-	(50,308)

Balance as at 31st Dec 2021	898,375,289		5,389,222		11,266,050		-		(462,030,419)		453,000,142

Figures in brackets indicate deductions.

3

MULTI FINANCE PLC

INTERIM FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED 31ST DECEMBER	2021		2020
	(Unaudited)		(Unaudited)
	Rs.		Rs.
Profit /(Loss) Before Taxation	(40,801,539)	(40,229,217)
Adjustments for :
Provision for Retirement Benefit Plans	688,797	688,797
Depreciation on Property, Plant and Equipment	6,498,040	7,373,721
Amortization of Leased Assets	11,633,510	10,803,764
Amortisation of Intangible Assets	441,511	818,620
(Profit)/Loss on Disposal of Property, Plant & Equipment	(338,037)	-
Impairment charge/(reversal) for loan and other advances	6,209,572	(3,363,748)
(Profit)/Loss on pawning auction	(23,456)	(22,299)
(Profit)/Loss on disposal of Repossessed Stock	175,173	1,498,433
Dividend Income	(60,000)	(80,000)
Interest expense on Lease Liability	1,895,693	2,138,969
Interest Accrued on Fixed Deposit Investments	(1,459,865)	(2,426,910)
Interest Accrued on Reverse Repurchase Agreements	(2,739,531)	(2,582,255)
Notional tax credit on interest on Treasury Bonds	-		8,256
Operating Profit before Working Capital Changes	(17,880,132)	(25,373,870)
Changes in working capital :
(Increase)/Decrease in Investment in Hire purchase, Lease and Other Loans	53,432,595	274,286,639
(Increase)/Decrease in Other Receivables	1,092,724	1,788,373
(Increase)/Decrease in Repossessed Stock	4,090,270	3,780,000
Increase/ (Decrease) in Deposits from Customers	(40,932,970)	(175,928,056)
Increase / (Decrease) in Amounts Due to Related Party	(629,943)	(1,191,971)
Increase/ (Decrease) in Other Payables	(2,592,623)		(6,034,206)
Cash generated from / (Used in) Operating Activities	(3,420,079)	71,326,908
Income Tax Paid	-	-
Gratuity Paid	(137,500)		(229,625)
Net cash generated from / (used in) Operating Activities	(3,557,579)	71,097,283
Cash flows from / (Used in) Investing Activities
Purchase of Property, Plant and Equipment	(55,400)	(30,886)
Proceeds from sale of Property, Plant & Equipment	514,500	-
Net Investment in Reverse Repurchase Agreements	(10,000,000)	-
Net Investment in Fixed Deposits	15,136,618	(5,000,000)
Cash Received from Pawning Auction	1,940,000	2,627,000
Dividend income Receipt	60,000	80,000
Interest Received on Fixed Deposit Investments	1,212,499	2,309,247
Interest Received on Reverse Repurchase Agreements	2,140,020		2,064,560
Net cash generated from / (used in) Investing Activities	10,948,237	2,049,921
Cash flow from / (Used in) Financing Activities
Payment of Lease liabilities	(13,235,798)		(12,648,998)
Net cash generated from / (used in) Financing Activities	(13,235,798)	(12,648,998)
Net Increase/(Decrease) in Cash and Cash Equivalents	(5,845,139)	60,498,207
Cash & Cash Equivalents at the Beginning of the period	20,067,178		(11,010,623)
Cash & Cash Equivalents at the end of the period	14,222,040	49,487,583
Analysis of Cash & Cash Equivalents
Favourable balance
Cash at Bank	10,125,875	44,304,011
Cash in Hand	6,161,480		7,693,530
	16,287,355	51,997,541
Unfavourable balance
Bank Overdrafts	(2,065,315)		(2,509,958)
	(2,065,315)	(2,509,958)
	14,222,040	49,487,583
Figures in brackets indicate deductions.

4