People Merchant Finance : Audited Financial Statements for the period ended 31st March 2024

AUDITED

FINANCIAL STATEMENTS

For the period ended 31st March 2024

PMF FINANCE PLC

PMF FINANCE PLC

STATEMENT OF PROFIT OR LOSS

For the year ended 31st March 2024

			Company					Group
						Restated							Restated
	For the year ended 31st March		2024			2023		Change		2024			2023		Change
	In thousands of rupees		Rs. '000			Rs. '000		%		Rs. '000			Rs. '000		%
			Audited			Audited				Audited			Audited
	Gross Income		3,345,300			2,095,447		59.6		3,345,300			2,095,447		59.6
	Interest income		3,092,836			2,008,133		54.0		3,092,836			2,008,133		54.0
	Less: Interest expense		(1,988,125)			(1,255,480)		(58.4)		(1,988,125)			(1,255,480)		(58.4)
	Net interest income		1,104,711			752,653		46.8		1,104,711			752,653		46.8
	Fee and commission income		39,498			29,552		33.7		39,498			29,552		33.7
	Net income from financial assets at FVTPL		131,131			30,644		327.9		131,131			30,644		327.9
	Other operating income		81,835			27,117		201.8		81,836			27,117		201.8
	Total operating income		1,357,175			839,967		61.6		1,357,175			839,967		61.6
	Less: Impairment (charges)/reversals and other losses		(225,546)			(154,029)		(46.4)		(225,546)			(154,029)		(46.4)
	Net operating income		1,131,629			685,937		65.0		1,131,629			685,937		65.0
	Less:
	Personnel expenses		(254,568)			(258,900)		1.7		(254,568)			(258,900)		1.7
	Depreciation of property, plant and equipment		(50,934)			(24,962)		(104.0)		(50,934)			(24,962)		(104.0)
	Amortisation of intangible assets		(3,332)			(2,936)		(13.5)		(3,332)			(2,936)		(13.5)
	Amortisation of right of use assets		(53,559)			(43,892)		(22.0)		(53,559)			(43,892)		(22.0)
	Other operating expenses		(740,793)			(505,568)		(46.5)		(740,793)			(505,799)		(46.5)
	Operating (loss)/profit before taxes on financial services		28,443			(150,320)		118.9		28,444			(150,551)		118.9
	Less: Taxes on financial services		(53,434)			(33,273)		(60.6)		(53,434)			(33,273)		(60.6)
	Loss before tax		(24,991)			(183,593)		86.4		(24,990)			(183,824)		86.4
	Less: Income tax reversal		44,253			29,810		48.5		44,253			29,810		48.5
	Profit/(loss) for the period		19,262			(153,783)		112.5		19,263			(154,014)		112.5
	Basic earnings per share (Rs.)		0.05			(0.38)				0.05			(0.38)
	Figures in brackets indicate deductions.
									.

PMF FINANCE PLC

STATEMENT OF FINANCIAL POSITION

As at 31st March 2024

			Company						Group
			Restated						Restated
As at	31.03.2024		31.03.2023			Change		31.03.2024		31.03.2023			Change
In thousands of rupees	Rs. '000		Rs. '000	%		Rs. '000		Rs. '000	%
	Audited		Audited				Audited		Audited
Assets
Cash and cash equivalents	1,827,450	654,625		179.2	1,827,450	654,865		179.1
Placements with banks and financial institutions	1,455,435	1,264,071		15.1	1,455,435	1,264,071		15.1
Investments in securities	576,443	409,938		40.6	576,443	409,938		40.6
Financial assets measured at amortised cost - loans and lease	5,800,423	4,192,052		38.4	5,800,423	4,192,052		38.4
rentals receivable
Financial assets measured at amortized cost - loans and	5,442,101	4,190,816		29.9	5,442,101	4,190,816		29.9
receivables to other customers
Real Estate Stock	56,905	55,859		1.9	56,905	55,859		1.9
Property, plant and equipment	268,886	169,494		58.6	268,886	169,494		58.6
Intangible assets	60,284	44,238		36.3	60,284	44,238		36.3
Right of use assets	168,099	189,561		(11.3)	168,099	189,561		(11.3)
Deferred tax assets	123,573	79,320		55.8	123,573	79,320		55.8
Other assets	538,830	279,610			92.7		538,830	279,610		92.7
Total assets	16,318,429	11,529,586		41.5	16,318,429	11,529,826		41.5
Liabilities
Due to banks	1,741,718	854,924		103.7	1,741,718	854,924		103.7
Deposits due to customers	11,238,015	7,651,122		46.9	11,238,015	7,651,122		46.9
Debt securities issued	18,400	17,800		3.4	18,400	17,800		3.4
Lease liabilities	170,393	179,178		(4.9)	170,393	179,178		(4.9)
Employee benefit obligation	16,206	12,249		32.3	16,206	12,249		32.3
Other liabilities	409,117	103,360		295.8	409,117	104,188		292.7
Total liabilities	13,593,850	8,818,634		54.1	13,593,849	8,819,461		54.1
Equity
Stated capital	3,762,054	3,762,054		0.0	3,762,054	3,762,054		0.0
Statutory reserve fund	21,202	20,239		4.8	21,202	20,239		4.8
Regulatory loss allowances reserve	54,173	-		-	54,173	-		-
Accumulated losses	(1,112,850)	(1,071,339)		(3.9)	(1,112,850)	(1,071,929)		(3.8)
Total equity attributable to the owners of the Company	2,724,579	2,710,954		0.5	2,724,579	2,710,364		0.5
Total liabilities and equity	16,318,429	11,529,586		41.5	16,318,429	11,529,826		41.5
Contingencies & Commitments
44,042	94,159		(53.2)	44,042	94,159		(53.2)

Net assets value per share (Rs.)

6.72

6.69

6.72

6.69

PMF FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31st March 2024

			Company						Group
For the year ended 31st March	2024		2023		Change		2024		2023		Change
In thousands of rupees	Rs. '000		Rs. '000		%		Rs. '000		Rs. '000		%
	Audited		Audited				Audited		Audited
(Loss)/profit for the year	19,262		(153,783)		112.5		19,263		(154,014)		112.5
Other comprehensive income (net of tax)
Actuarial gain on retirement benefit obligation	(4,091)		2,194		286.4		(4,091)		2,194		286.4
Deferred tax effect on actuarial (loss)	-		(658)		100.0		-		(658)		100.0
Other comprehensive income for the period, net of taxes	(4,091)		1,536		366.3		(4,091)		1,536		366.3
Total comprehensive (loss)/income for the year attributable to					110.0						109.9
the owners of the Company	15,171		(152,247)			15,171		(152,478)

Figures in brackets indicate deductions.

PMF FINANCE PLC

SELECTED KEY PERFORMANCE INDICATORS

Item		Company
As at 31.03.2024	As at 31.03.2023
	Required	Actual	Required	Actual
Regulatory Capital Adequacy (%)
Tier 1 Capital Adequacy Ratio	8.50%	17.92%	8.50%	26.76%
Total Capital Adequacy Ratio	12.50%	17.92%	12.50%	26.76%
Capital Funds to Deposit Liabilities Ratio	10.00%	24.24%	10.00%	35.43%
Quality of Loan Portfolio (%)
Gross Stage 3 Loans Ratio		17.47%		18.17%
Net Stage 3 Loan Ratio		15.89%		14.32%
Net Stage 3 Loans to Core Capital Ratio		69.88%		44.85%
Stage 3 Impairment Coverage Ratio		13.16%		25.77%
Total Impairment Coverage Ratio		4.50%		5.82%
Profitability (%)
Net Interest Margin		9.47%		8.78%
Return on Assets		0.14%		-1.55%
Return on Equity		0.71%		-5.55%
Cost to Income Ratio		77.28%		94.97%
Liquidity (%)
Available Liquid Assets to Required Liquid		150%		107%
Assets (Minimum 100%)
Liquid Assets to External Funds		13%		10%
Memorandum information
Number of branches		14		13
External Credit Rating		B+ Stable		B+ Stable

The Company does not have any regulatory penalties or regulatory restrictions on deposits, borrowings and lending during the period ended 31st March 2024 and 2023.

CERTIFICATION

These Financial Statements have been prepared in compliance with the reqirements of the Companies Act, No. 07 of 2007.

Sgd.	Sgd.
Achan Chandula	Terrance Kumara
Chief Manager Finance	Chief Executive Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Sgd	Sgd.
Chandula Abeywickrama	Rangana Koralage
Chairman	Director
09 July 2024	09 July 2024
Colombo	Colombo