People Merchant Finance : Quarterly Financial Report as at 30th June 2022

CONDENSED

INTERIM

FINANCIAL

STATEMENTS

PEOPLE'S MERCHANT FINANCE PLC

For the period ended 30th June 2022

Contents

Interim Financial Information

Condensed Statement of Financial Position	03
Condensed Statement of Profit or Loss	04
Condensed Statement of Comprehensive Income - Company	05
Condensed Statement of Comprehensive Income - Group	06
Condensed Statement of Changes in Equity - Company	07
Condensed Statement of Changes in Equity - Group	08
Condensed Statement of Cash Flows	09
Explanatory Notes	10
Segmental Analysis	15
Corporate Information	16

CONDENSED INTERIM FINANCIAL STATEMENTS

CONDENSED STATEMENT OF FINANCIAL POSITION

			Company			Group
As at,		30.06.22	31.03.22	Change	30.06.22	31.03.22	Change
Notes	Unaudited	Audited	Unaudited	Audited
	%	%
		Rs. '000	Rs. '000	Rs. '000	Rs. '000
Assets
Cash and cash equivalents	11.1	556,608	660,873	(15.8)	556,851	661,116	(15.8)
Placements with banks and financial institutions	11.1	799,947	410,942	94.7	799,947	410,942	94.7
Financial assets measured at fair value	11.1	7,114	9,245	(23.0)	7,114	9,245	(23.0)
Financial assets measured at amortised cost - Loans and advances	11.1	7,093,420	6,676,608	6.2	7,093,420	6,676,608	6.2
Property, plant and equipment		95,490	82,027	16.4	95,490	82,027	16.4
Intangible assets		9,939	9,760	1.8	9,939	9,760	1.8
Right of use assets		132,819	123,822	7.3	132,819	123,822	7.3
Deferred tax assets		48,599	50,722	(4.2)	48,599	50,722	(4.2)
Other Assets		234,149	255,817	(8.5)	234,149	255,817	(8.5)
Total Assets		8,978,085	8,279,816	8.4	8,978,328	8,280,059	8.4
Liabilities
Due to banks	11.1	1,633,604	1,842,767	100.0	1,633,604	1,842,767	100.0
Financial liabilities at amortised cost - due to depositors	11.1	4,255,615	3,228,866	31.8	4,255,615	3,228,866	31.8
Debt securities issued	11.1	17,350	17,200	0.9	17,350	17,200	0.9
Lease liabilities	11.2	147,407	136,450	8.0	147,407	136,450	8.0
Employee benefit obligation		13,666	13,378	2.2	13,666	13,378	2.2
Other liabilities		143,559	207,460	(30.8)	144,159	208,062	(30.7)
Total Liabilities		6,211,201	5,446,121	14.0	6,211,801	5,446,723	14.0
Equity
Stated capital		3,762,054	3,762,054	-	3,762,054	3,762,054	-
Statutory reserve fund		20,239	20,239	-	20,239	20,239	-
Accumulated losses		(1,015,409)	(948,598)	(7.0)	(1,015,766)	(948,957)	(7.0)
Total Equity		2,766,884	2,833,695	(2.4)	2,766,527	2,833,336	(2.4)
Total Liabilities & Equity		8,978,085	8,279,816	8.4	8,978,328	8,280,059	8.4
Contingent liabilities and commitments		119,890	131,700	(9.0)	119,890	131,700	(9.0)
Net assets value per ordinary share (Rs.)		6.83	6.99	(2.4)	6.83	6.99	(2.4)
CERTIFICATION
We certify that the above interim financial statements are in compliance with the requirement of the Companies Act No 07 of 2007.
(Signed)				(Signed)
Tharindu Samarakone				Nalin Wijekoon
Manager-Finance				Chief Executive Officer
The Board of Directors is responsible for the preparation and presentation of these Interim Financial Statements.
Approved and signed for and on behalf of the Board of Directors.
(Signed)				(Signed)
Chandula Abeywickrema				Rangana Koralage
Chairman				Director

15th August 2022

Colombo

Figures in brackets indicate deductions.

3

CONDENSED INTERIM FINANCIAL STATEMENTS

CONDENSED STATEMENT OF PROFIT OR LOSS - COMPANY

For the three months ended		Company			Group
30.06.2022	30.06.2021	Change	30.06.2022	30.06.2021	Change
	Unaudited	Reviewed	Unaudited	Reviewed
	%	%
	Rs. '000	Rs. '000	Rs. '000	Rs. '000
Gross Income	368,637	183,559	100.8	368,637	183,559	100.8
Interest income	357,434	135,568	163.7	357,434	135,568	163.7
Less: Interest expense	193,310	52,674	267.0	193,310	52,674	267.0
Net interest income	164,124	82,894	98.0	164,124	82,894	98.0
Fee and commission income	5,314	2,281	133.0	5,314	2,281	133.0
Net fair value gain from financial assets at FVTPL	(2,131)	15,436	113.8	(2,131)	15,436	113.8
Other operating income	8,020	30,274	(73.5)	8,020	30,274	(73.5)
Total operating income	175,327	130,885	34.0	175,327	130,885	34.0
Less: Impairment charges for loans and receivables and other	67,517	16,753	303.0	67,517	16,753	303.0
losses
Net operating income	107,810	114,132	(5.5)	107,810	114,132	(5.5)
Less: Personnel Expenses	82,137	64,421	27.5	82,137	64,421	27.5
Depreciation of property, plant and equipment	4,498	1,524	195.2	4,498	1,524	195.2
Amortisation of intangible assets	132	109	21.5	132	109	21.5
Amortisation of right of use assets	9,159	10,699	(14.4)	9,159	10,699	(14.4)
Other expenses	72,532	31,054	133.6	72,532	31,054	133.6
Operating profit / (loss) before tax on financial services	(60,648)	6,325	1,058.9	(60,648)	6,325	1,058.9
Less : Tax on financial services	4,038	9,272	(56.5)	4,038	9,272	(56.5)
Profit / (loss) before income tax	(64,686)	(2,947)	(2,095.0)	(64,686)	(2,947)	(2,095.0)
Less: Income tax expense	2,123	-	-	2,123	-	-
Profit for the period	(66,809)	(2,947)	(2,167.0)	(66,809)	(2,947)	(2,167.0)
Basic earnings per share - (Rs)	(0.16)	(0.01)	(1,775.9)	(0.16)	(0.01)	(1,775.9)

Figures in brackets indicate deductions.

4

CONDENSED INTERIM FINANCIAL STATEMENTS

CONDENSED STATEMENT OF OTHER COMPREHENSIVE INCOME - COMPANY

		Company			Group
For the three months ended	30.06.2022	30.06.2021	Change	30.06.2022	30.06.2021	Change
Unaudited	Reviewed	Unaudited	Reviewed
	%	%
	Rs. '000	Rs. '000	Rs. '000	Rs. '000
Profit / (loss) for the period	(66,809)	(2,947)	(2,167.0)	(66,809)	(2,947)	(2,167.0)
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial loss on defined benefit plans	-	-	-	-	-	-
Deferred tax effect on actuarial loss	-	-	-	-	-	-
Other comprehensive income for the period
-	-	-	-	-	-
Total comprehensive income for the period
(66,809)	(2,947)	(2,167.0)	(66,809)	(2,947)	(2,167.0)

Figures in brackets indicate deductions.

5