People Merchant Finance : Quarterly Financial Report as at 31.12.2021

CONDENSED

INTERIM

FINANCIAL

STATEMENTS

PEOPLE'S MERCHANT FINANCE PLC

For the period ended 31st December 2021

KPMG	Tel	+94 - 11 542 6426
(Chartered Accountants)	Fax	+94 - 11 244 5872
32A, Sir Mohamed Macan Markar Mawatha,		+94 - 11 244 6058
P. 0. Box 186,	Internet	www.kpmg.com/lk
Colombo 00300, Sri Lanka.

People's Merchant Finance PLC

Independent auditors' report on review of interim financial information

To the Board of Directors

Introduction

We have reviewed the accompanying condensed interim financial information of People's Merchant Finance PLC ("the Company") and condensed consolidated interim financial information of the Company and its Subsidiary (the "Group") as at 31st December 2021, which comprise.:

• the condensed statements of financial position as at 31st December 2021;
• the condensed statements of profit or loss and other comprehensive income for the three-month and nine-month period ended 31st December 2021;
• the condensed statements of changes in equity for the nine month period ended 31st December 2021;
• the condensed statements of cash flows for the nine-month period ended 31st December 2021; and
• notes to the interim financial information.

Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with LKAS 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.

Scope of Review

We conducted our review in accordance with the Sri Lanka Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Sri Lanka Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying 31st December 2021 condensed interim financial information is not prepared, in all material respects, in accordance with LKAS 34, 'Interim Financial Reporting'.

Chartered Accountants

15th February 2022

		M.R. Mihular FCA	P.Y.S. Perera FCA	C.P. Jayatilake FCA
		T.J.S. Rajakarier FCA	W.W.J.C. Perera FCA	Ms. S. Joseph FCA
		Ms. S.M.B. Jayasekara ACA	W.K.D.C Abeyrathne FCA	S.T.D.L. Perera FCA
KPMG, a Sri Lankan partnership and a member firm of the		G.A.U. Karunaratne FCA	R.M.D.B. Rajapakse FCA	Ms. B.K.D.T.N. Rodrigo FCA
KPMG global organization of independent member firms		R.H. Rajan FCA	M.N.M. Shameel FCA	Ms. C.T.K.N. Perera ACA
affiliated with KPMG International Limited, a private English	1	A.M.R.P. Alahakoon ACA
company limited by guarantee. All rights reserved	Principals - S.R.I. Perera FCMA(UK), LLB, Attorney-at-Law,	H.S. GoonewardeneACA

Ms. P. M. K. Sumanasekara FCA, W. A. A. Weerasekara CFA, ACMA, MRICS

Contents

Financial Information

Statement of Financial Position	03
Statement of Profit or Loss - Company	04
Statement of Profit or Loss - Group	05
Statement of Comprehensive Income - Company	06
Statement of Comprehensive Income - Group	07
Statement of Changes in Equity - Company	08
Statement of Changes in Equity - Group	09
Statement of Cash Flows	10
Explanatory Notes	11
Segmental Analysis	16
Corporate Information	17

CONDENSED INTERIM FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

			Company				Group
As at,		31.12.21	31.03.21	Change		31.12.21	31.03.21	Change
Notes	Reviewed	Audited		Reviewed	Audited
	%		%
		Rs. '000	Rs. '000		Rs. '000	Rs. '000
Assets
Cash and cash equivalents	13	939,238	707,190	32.8		939,485	707,437	32.8
Placements with banks and financial institutions	13	205,372	5,126	3,906.7		205,372	5,126	3,906.7
Financial assets measured at fair value	13	49,754	647,840	(92.3)		49,754	647,840	(92.3)
Financial assets measured at amortised cost - Loans and advances	13	6,025,815	3,156,568	90.9		6,025,815	3,156,568	90.9
Property, plant and equipment		71,572	24,879	187.7		71,572	24,879	187.7
Intangible assets		8,850	6,590	34.3		8,850	6,590	34.3
Right of use assets		127,952	68,787	86.0		127,952	68,787	86.0
Other Assets		419,628	86,872	383.0		419,628	86,872	383.0
Total Assets		7,848,181	4,703,852	66.8		7,848,428	4,704,099	66.8
Liabilities
Due to banks	13	1,645,371	-	100.0		1,645,371	-	100.0
Financial liabilities at amortised cost - due to depositors	13	3,053,816	2,289,491	33.4		3,053,816	2,289,491	33.4
Debt securities issued	6	17,050	16,600	2.7		17,050	16,600	2.7
Lease liabilities	13	138,230	80,424	71.9		138,230	80,424	71.9
Employee benefit obligation		18,333	18,360	(0.2)		18,333	18,360	(0.2)
Other liabilities		301,639	167,776	79.8		302,072	168,209	79.6
Total Liabilities		5,174,439	2,572,651	101.1		5,174,872	2,573,084	101.1
Equity
Stated capital		3,762,055	3,252,159	15.7		3,762,055	3,252,159	15.7
Statutory reserve fund		10,649	10,649	0.0		10,649	10,649	0.0
Accumulated losses		(1,098,961)	(1,131,607)	2.9		(1,099,147)	(1,131,793)	2.9
Total Equity		2,673,743	2,131,201	25.5		2,673,557	2,131,015	25.5
Total Liabilities & Equity		7,848,181	4,703,852	66.8		7,848,428	4,704,099	66.8
Contingent liabilities and commitments		471,863	81,260	480.7		471,863	81,260	480.7
Net assets value per ordinary share (Rs.)		6.60	6.52	1.2		6.60	6.52	1.2
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)
Kokila Perera				Nalin Wijekoon
Senior 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				Channa Manoharan
Chairman				Director

15th February 2022

Colombo

Figures in brackets indicate deductions.

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CONDENSED INTERIM FINANCIAL STATEMENTS

STATEMENT OF PROFIT OR LOSS - COMPANY

	For the nine months ended	For the quarter ended
	31.12.2021	31.12.2020	Change	31.12.2021	31.12.2020	Change
	Reviewed	Reviewed	Reviewed	Reviewed
	%	%
	Rs. '000	Rs. '000	Rs. '000	Rs. '000
Gross Income	646,858	461,735	40.1	264,068	193,568	36.4
Interest income	522,543	338,129	54.5	223,597	130,331	71.6
Less: Interest expense	185,141	169,980	8.9	77,422	53,239	45.4
Net interest income	337,402	168,149	100.7	146,176	77,092	89.6
Fee and commission income	12,949	7,529	72.0	6,746	3,105	117.3
Net fair value gain from financial assets at FVTPL	31,538	39,435	(20.0)	6,542	13,645	(52.1)
Other operating income	79,828	76,643	4.2	27,183	46,488	(41.5)
Total operating income	461,718	291,756	58.3	186,648	140,330	33.0
Less: Impairment charges for loans and receivables and other	25,657	6,974	267.9	11,360	545	1,984.4
losses
Net operating income	436,062	284,782	53.1	175,288	139,785	25.4
Less: Personnel Expenses	194,992	120,472	61.9	65,830	48,770	35.0
Depreciation of property, plant and equipment	6,023	3,050	97.5	3,217	1,078	198.4
Amortisation of intangible assets	403	1,416	(71.5)	166	623	(73.3)
Amortisation of right of use assets	33,717	28,046	20.2	10,347	13,581	(23.8)
Other expenses	131,588	86,525	52.1	49,096	34,137	43.8
Operating profit before tax on financial services	69,337	45,273	53.2	46,632	41,597	12.1
Less : Tax on financial services	34,628	19,978	73.3	14,920	10,452	42.8
Profit before income tax	34,709	25,295	37.2	31,712	31,146	1.8
Less: Income tax expense	-	-	-	-	-	-
Profit for the period	34,709	25,295	37.2	31,712	31,146	1.8
Basic earnings per share - (Rs)	0.11	0.12	(12.3)	0.09	0.15	(36.0)

Figures in brackets indicate deductions.

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