Alliance Finance Company PlcCSELK: ALLI.N0000

Interim financial statement 30/06/2024

Aug 15, 2024 at 11:21 AM UTC · MarketScreener

Financial Statements

For the Three Months Ended

30th June 2024

The first financial institution in South Asia to receive the SSCI Certification,the world's first measurable and certifiable standard for value driven financial institutions with holistic sustainability integration to the business.

Alliance Finance Company PLC

Statement of Profit or Loss

			Company				Group
For the three months ended 30th June	2024	2023		2024	2023
	(unaudited)		(unaudited)	Variance	(unaudited)		(unaudited)	Variance
	Rs.		Rs.	%	Rs.		Rs.	%
Gross Income	3,657,699,811	3,181,412,074	15	3,698,669,755	3,208,128,270	15
Interest income	3,439,907,683	3,065,038,318	12	3,447,276,642	3,068,877,900	12
Interest expenses	(1,596,798,889)		(2,039,586,860)	22	(1,596,802,001)		(2,034,054,273)	21
Net Interest Income	1,843,108,794	1,025,451,458	80	1,850,474,641	1,034,823,627	79
Fee and Commission Income	90,598,721	61,162,020	48	121,246,301	82,449,865	47
Net gain/(loss) from trading	30,984,452	5,187,837	497	31,649,980	4,178,614	657
Other operating income (net)	96,208,955		50,023,899	92	98,496,832		52,621,891	87
Total Operating Income	2,060,900,922	1,141,825,214	80	2,101,867,754	1,174,073,997	79
Impairment (charges) / reversal for loans and	(211,746,896)	(141,579,198)	(50)	(211,746,894)	(141,579,198)	(50)
other losses

Net Operating Income	1,849,154,026	1,000,246,016	85	1,890,120,860	1,032,494,799	83
Operating Expenses
Personnel expenses	(502,893,763)	(330,860,924)	(52)	(508,011,301)	(334,606,431)	(52)
Other operating expenses	(636,070,366)	(452,899,536)	(40)	(644,328,243)	(455,417,596)	(41)
Depreciation and amortization	(50,079,264)		(41,085,033)	(22)	(50,235,976)		(41,255,519)	(22)
Total operating expenses	(1,189,043,393)	(824,845,493)	(44)	(1,202,575,520)	(831,279,546)	(45)
Operating Profit before Taxes on Financial
Services	660,110,633	175,400,523	276	687,545,340	201,215,253	242
Taxes on financial services	(203,498,425)	(63,188,719)	(222)	(203,498,425)	(63,188,719)	(222)
Operating Profit after Taxes on Financial
Services	456,612,208	112,211,804	307	484,046,915	138,026,534	251
Share of profit/(loss) from associates	9,533,545		4,521,208	111	9,533,545		4,521,208	111
Profit before Taxation from Operations	466,145,753	116,733,012	299	493,580,460	142,547,742	246
Provision for income taxation	(219,088,374)		(51,617,429)	(324)	(228,828,166)		(59,341,765)	(286)
Profit for the Period	247,057,379	65,115,583	279	264,752,294	83,205,977	218
Profit attributable to :

Equity holders of the Company	247,057,379	65,115,583	279	258,371,507	76,682,581	237
Non controlling interest	-		-	-	6,380,787		6,523,396	(2)
Profit for the Period	247,057,379		65,115,583		264,752,294		83,205,977

Basic/ Diluted earnings per share (Annualised)	29.33	7.73		30.67	9.10

Alliance Finance Company PLC

Statement of Comprehensive Income - Company

	Company		Group
For the three months ended 30th June	2024	2023		2024			2023
	(unaudited)		(unaudited)	Variance	(unaudited)	(unaudited)	Variance
	Rs.		Rs.	%	Rs.	Rs.	%
Profit for the period	247,057,379	65,115,583	279	264,752,294			83,205,977	218
Other Comprehensive Income

Other Comprehensive Income not to be
Reclassified to Profit or Loss
Equity investments at FVOCI -net change in
fair value & realized profit/ (loss) to retained	9,431,346	11,836,505	20	9,431,346			11,836,505	20
earnings
Net Other Comprehensive Income not be	9,431,346	11,836,505	20	9,431,346			11,836,505	20
Classified to Profit or Loss


Total Comprehensive Income for the period	256,488,725	76,952,088	233	274,183,640			95,042,482	188
Attributable to:


Equity holders of the company	256,488,725	76,952,088	233	267,802,853			88,519,086	203
Non controlling interest	-		-		6,380,786			6,523,396	(2)
Total Comprehensive Income for the period	256,488,725	76,952,088		274,183,639			95,042,482

Alliance Finance Company PLC

Statement of Financial Position

			Company				Group
As at	30.06.2024	31.03.2024	Variance	30.06.2024	31.03.2024	Variance
	Rs.		Rs.	%	Rs.		Rs.	%
	(unaudited)		(audited)		(unaudited)		(audited)
Assets
Cash and cash equivalents	1,092,126,413	1,037,507,757	5	1,268,239,678	1,136,828,171	12
Repurchase agreements	4,019,509,186	962,606,909	318	4,019,509,186	962,606,909	318
Placements with banks & financial	3,396,148,362	3,246,352,935	5	3,545,228,469	3,383,898,083	5
institutions

Financial assets recognised through	4,101,420,824	3,508,968,758	17	4,101,420,824	3,508,968,758	17
profit or loss

Loans and advances - at amortised cost	25,934,315,410	23,506,870,064	10	25,934,315,409	23,506,870,064	10
Lease rentals receivable & stock out on	22,844,376,760	22,597,190,332	1	22,844,376,760	22,597,190,332	1
hire - at amortised cost

Financial assets- fair value through other	418,007,339	317,703,694		418,007,339	317,703,694
comprehensive income	32	32

Other trading stocks	130,033,235	85,653,478	52	130,033,235	85,653,478	52
Other financial assets	523,696,219	458,631,541	14	503,818,565	450,152,849	12
Other non financial assets	216,747,530	257,537,354	(16)	225,199,342	265,196,987	(15)
Investments in associates	119,865,729	110,332,180	9	138,018,096	128,484,547	7
Investments in subsidiaries	16,924,038	16,924,038	-	-	-	-
Investment property	187,680,000	187,680,000	-	295,680,000	295,680,000	0
Property, plant & equipment	3,268,911,544	3,202,649,652	2	3,269,103,899	3,202,950,925	2
Intangible assets	163,132,327	147,087,856	11	163,166,276	147,169,590	11
Right of use asset	345,276,108	356,347,453	(3)	345,276,108	356,347,453	(3)
Deferred tax assets	153,955,519		174,526,137	(12)	153,955,519		175,796,752	(12)
Total Assets	66,932,126,543	60,174,570,138	11	67,355,348,705	60,521,498,592	11
Liabilities

Due to banks	24,473,975,565	20,310,185,391	21	24,509,155,492	20,310,185,391	21
Due to depositors - at amortised cost	30,607,800,176	28,387,365,249	8	30,606,979,859	28,386,553,614	8
Other financial liabilities	1,429,712,343	1,129,788,584	27	1,480,252,787	1,159,602,656	28
Other non financial liabilities	157,070,759	219,237,671	(28)	157,070,759	219,237,671	(28)
Derivative financial liabilities	99,612	5,379,033	(98)	99,612	5,379,033	(98)
Income tax liabilities	1,066,402,037	928,513,196	15	1,080,553,884	938,772,455	15
Retirement benefit liabilities	62,927,448	52,103,008	21	67,242,038	56,338,393	19
Deferred tax liabilities	715,940,127	663,298,289	8	720,149,620	668,778,398	8
Lease Liability	341,599,611		349,669,731	(2)	341,599,611		349,669,731	(2)
Total Liabilities	58,855,527,678	52,045,540,152	13	58,963,103,662	52,094,517,342	13
Shareholders' Funds
Stated capital	613,980,000	613,980,000	-	613,980,000	613,980,000	-
Retained earnings	4,473,951,586	4,509,940,679	(1)	4,650,688,024	4,675,362,989	(1)
Reserves	2,988,667,279		3,005,109,307	(1)	2,988,667,279		3,005,109,307	(1)
Total Equity Attributable to Equity	8,076,598,865	8,129,029,986		8,253,335,303	8,294,452,296
Holders of the Company	(1)	(0)

Non controlling interest	-		-		138,909,740		132,528,954	5
Total Equity	8,076,598,865		8,129,029,986	(1)	8,392,245,043		8,426,981,250	(0)
Total Liabilities and Shareholders' Funds
66,932,126,543		60,174,570,138	11	67,355,348,705		60,521,498,592	11

Contingent Liabilities and Commitments	904,890,967	820,666,741		904,890,967	820,666,741
Net assets value per share (Rs.)	240	241		245	246

Accounting policies & notes to the accounts form an integral part of these Financial Statements.

Certification

I certify that these Financial Statements are presented in compliance with the requirements of the Companies Act No. 07 of 2007.

W.A.D.D. Tillekeratne	W.P.K Jayawardana	R.K.E.P. De Silva
Chief Financial Officer	Deputy Managing Director	Deputy Chairman & Managing Director
15-08-2024
Colombo

Alliance Finance Company PLC

Statement of Changes in Equity

Company	Stated Capital	Statutory Reserve		Revaluation Reserve		General Reserve		FVOCI		Non Controlling	Retained Earnings	Total
	Fund								Interest

	Rs.	Rs.		Rs.		Rs.		Rs.		Rs.	Rs.	Rs.
Balance as at 1st April 2023	613,980,000	1,002,482,237	1,223,390,151	388,258,055	(31,969,924)	-	3,761,997,661	6,958,138,180
Profit for the period	-	-	-	-	-	-	65,115,583	65,115,583
Other comprehensive income, net of tax
Equity investments at FVOCI - net change in fair value &
disposal profit	-	-		-		-		11,836,505		-	-	11,836,505
Balances as at 30th June 2023	613,980,000	1,002,482,237		1,223,390,151		388,258,055		(20,133,419)		-	3,827,113,244	7,035,090,268

Balance as at 1st April 2024	613,980,000	1,048,326,205	1,593,798,551	388,258,055	(25,273,504)	-	4,509,940,679	8,129,029,986
Profit for the period	-	-	-	-	-	-	247,057,379	247,057,379
Other comprehensive income, net of tax
Equity investments at FVOCI - net change in fair value &
disposal profit	-	-	-	-	9,431,346	-	-	9,431,346
Changes in revaluation reserve			(25,873,374)			-	-	-	(25,873,374)
Dividend Payable - FY 2023/24	-	-		-		-		-		-	(283,046,472)	(283,046,472)
Balances as at 30th June 2024	613,980,000	1,048,326,205	1,567,925,177	388,258,055	(15,842,158)	-	4,473,951,586	8,076,598,865

Statement of Changes in Equity

Group
	Stated Capital	Statutory Reserve		Revaluation Reserve		General Reserve		FVOCI	Non Controlling	Retained Earnings	Total
		Fund							Interest
	Rs.	Rs.		Rs.		Rs.		Rs.	Rs.	Rs.	Rs.
Balance as at 1st April 2023	613,980,000	1,002,482,237	1,223,390,151	388,258,055	(31,969,924)	99,468,368	3,870,187,587	7,165,796,475
Profit for the period	-	-	-	-	-	6,523,396	76,682,581	83,205,977
Other comprehensive income, net of tax -
Equity investments at FVOCI - net change in fair value &
disposal profit	-	-		-		-		11,836,505	-	-	11,836,505
Balances as at 30th June 2023	613,980,000	1,002,482,237		1,223,390,151		388,258,055		(20,133,419)	105,991,764	3,946,870,168	7,260,838,957

Balance as at 1st April 2024	613,980,000	1,048,326,205	1,593,798,551	388,258,055	(25,273,504)	132,528,953	4,675,362,989	8,426,981,249
Profit for the period	-	-	-	-	-	6,380,787	258,371,507	264,752,294
Other comprehensive income, net of tax -
Equity investments at FVOCI - net change in fair value &
disposal profit	-	-	-	-	9,431,346	-	-	9,431,346
Changes in revaluation reserve	-	-	(25,873,374)	-	-	-	-	(25,873,374)
Dividend Payable - FY 2023/24	-	-		-		-		-	-	(283,046,472)	(283,046,472)
Balances as at 30th June 2024	613,980,000	1,048,326,205	1,567,925,177	388,258,055	(15,842,158)	138,909,740	4,650,688,024	8,392,245,043

Figures in brackets indicate deductions.										(0)

Accounting policies & notes to accounts form an integral part of these Financial Statements.

Alliance Finance Company PLC

Statement of Cash Flows

	Company		Group
For the period ended 30th June	2024		2023	2024		2023
Cash Flows From / (Used in) Operating Activities	Rs.	Rs.	Rs.	Rs.
Profit before Income Tax Expense	466,145,753		116,733,012	493,580,459		142,547,742
Adjustments for;
Depreciation of property, plant & equipment	47,148,503		38,336,033	47,257,428		38,458,603
Amortization of intangible assets	2,930,761		2,749,000	2,978,548		2,796,916
Amortization of Right of use asset	33,298,354		32,228,647	33,298,354		32,228,647
Interest expense on lease liability	12,289,775		8,770,747	12,289,775		8,770,747
Impairment (reversal)/provision	174,008,932		133,963,254	174,008,932		133,963,254
Interest on fixed deposits, commercial paper & treasury bills	(105,126,177)		(121,404,239)	(112,495,136)		(125,243,821)
Fair value (gain)/loss on equity investments (FVTPL)	(6,965,533)		-	(6,965,533)		-
Bad debt written-off	37,737,964		7,615,944	37,737,963		7,615,944
Loss/(profit) on disposal of property, plant & equipment	(4,380,577)		(4,671,000)	(4,380,577)		(4,671,000)
Profit from sale of vehicle	(10,396,197)		(2,760,074)	(10,396,197)		(2,760,074)
Provision/(reversal) for defined benefit plans	7,071,405		13,500,000	7,350,612		13,753,824
Dividend received	(7,051,138)		(2,241,606)	(7,051,138)		(2,241,606)
Share of loss/(profit) from associates	(9,533,545)		(4,521,208)		(9,533,545)		(4,521,208)
Operating Profit before Working Capital Changes	637,178,280		218,298,510	657,679,945		240,697,968
(Increase)/decrease in trading stock	(36,774,919)		11,233,025	(36,774,919)		11,233,025
(Increase)/decrease in loans and advances	(2,534,892,987)		(133,842,981)	(2,534,892,987)		(133,842,981)
(Increase)/decrease in lease rentals receivable & stock out on hire	(351,485,679)		(43,067,837)	(351,485,679)		(43,067,837)
(Increase)/decrease in fixed deposits & repo	(3,206,697,704)		827,720,676	(3,218,232,662)		822,739,293
(Increase)/decrease in other financial assets	(65,064,678)		(17,019,746)	(53,665,716)		3,324,442
(Increase)/decrease in other non financial assets	79,684,649		23,279,472	78,892,468		14,096,558
Increase/(decrease) in derivative financial liabilities	(5,279,500)		(32,395,253)	(5,279,500)		(32,395,253)
Increase/(decrease) in amounts due to depositors	2,220,434,927		1,286,975,703	2,220,426,245		1,276,236,817
Increase/(decrease) in other financial liabilities	(3,482,535)		79,457,473	17,243,837		49,574,878
Increase/(decrease) in other non financial liabilities	(62,166,912)		(7,940,967)		(62,166,912)		(8,806,119)
Cash generated from/(used in) Operations	(3,328,547,058)		2,212,698,074	(3,288,255,880)		2,199,790,791
Retirement benefit liabilities paid	3,753,034		(2,031,619)	3,553,033		(2,031,619)
Taxes paid	(33,860,451)		(48,645,311)		(39,707,663)		(53,393,761)
Net cash generated from/(used in) operating activities	(3,358,654,475)		2,162,021,144	(3,324,410,509)		2,144,365,411
Cash Flows from / (Used in) Investing Activities
Acquisition of property, plant & equipment	(123,804,818)		(28,031,001)	(123,804,818)		(28,031,003)
Acquisition of right of use assets	(22,227,009)		(3,030,000)	(22,227,009)		(3,030,000)
Acquisition of Intangible Assets	(18,975,232)		(8,863,691)	(18,975,232)		(8,863,691)
Investment in associates	-		(25,000,000)	-		(25,000,000)
Proceeds from sales of property, plant & equipment	14,775,000		9,950,000	14,775,000		9,950,000
Proceeds from sales of vehicles	2,791,358		5,412,162	2,791,358		5,412,162
Net sales/ (purchases) of financial assets -FVTPL/FVTOCI	(676,358,832)		1,249,162,777	(676,358,832)		1,249,162,777
Dividend received	7,051,138		2,241,606	7,051,138		2,241,606
Interest on fixed deposits, commercial paper & treasury bills	105,126,177		121,404,239		112,495,136		125,243,821
Net Cash Generated from Investing Activities	(711,622,218)		1,323,246,092	(704,253,259)		1,327,085,672
Cash Flows from / (Used in) Financing Activities
Settlement of operating lease liabilities	(38,894,825)		(42,630,216)	(38,894,825)		(42,630,216)
Net increase /(decrease) in other borrowings	4,320,806,396		(1,086,240,017)	4,320,806,396		(1,086,240,017)
Net Cash Generated from/(Used in) Financing Activities	4,281,911,571		(1,128,870,233)	4,281,911,571		(1,128,870,233)
Net Increase/(Decrease) in Cash and Cash Equivalents	211,634,878		2,356,397,003	253,247,803		2,342,580,850
Cash and cash equivalents at the beginning of the year	(283,171,510)		(2,952,136,234)	(183,851,096)		(2,894,359,487)
Cash and cash equivalents at the end of the period *	(71,536,632)		(595,739,231)		69,396,706		(551,778,637)
Movement in Cash and Cash Equivalent	211,634,878		2,356,397,003	253,247,802		2,342,580,850

Note : Reporting cash flows from operating activities

The Company reports cash flows from operating activities by using the indirect method. The indirect method - whereby profit or loss is adjusted for the effects of non- cash items, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows - is shown in the above.

* Cash and cash equivalents at the end of the period include favourable cash balances and the Bank Overdraft balances.

Alliance Finance Company PLC

Fair Value Hierarchy

Company
Financial assets
		Fair Value Measurement using
	Quoted Prices in	Significant	Significant
	Unobservable
	Active Markets	Observable Inputs
	Inputs

	Level 1	Level 2	Level 3	Total
	Rs.	Rs.	Rs.	Rs.
As at 30th June 2024
Financial assets - Fair value through
profit and loss
Government of Sri Lanka treasury bills	-	3,995,599,373	-	3,995,599,373
Government of Sri Lanka treasury bonds	-	105,821,451	-	105,821,451
Financial assets - Fair value through
Other Comprehensive Income
Quoted Investments	417,428,089	-	-	417,428,089
Unquoted Investments	-	-	579,250	579,250
	417,428,089	4,101,420,824	579,250	4,519,428,163
Liabilities

Due to Depositors	-	30,607,800,176	-	30,607,800,176
Due to Banks	-	24,473,975,565	-	24,473,975,565
Derivative financial liabilities	-	99,612	-	99,612
	-	55,081,875,353	-	55,081,875,353
As at 30th June 2023

Financial assets - Fair value through
profit and loss
Government of Sri Lanka treasury bills	-	1,881,527,496	-	1,881,527,496
Financial assets - Fair value through
Other Comprehensive Income
Quoted Investments	193,962,875	-	-	193,962,875
Unquoted Investments	-	-	579,250	579,250
	193,962,875	1,881,527,496	579,250	2,076,069,621
Liabilities

Due to Depositors	-	21,762,823,538	-	21,762,823,538
Due to Banks	-	19,452,510,660	-	19,452,510,660
Derivative financial liabilities	-	3,779,763	-	3,779,763
	-	41,219,113,961	-	41,219,113,961

Alliance Finance Company PLC

ANALYSIS OF FINANCIAL STATEMENTS MEASUREMENT BASIS
Company
As at 30th June 2024
Financial assets	Financial assets at	Financial assets at	Total
recognized	amortized cost	fair value through
through profit or	(AC)	other
loss (FVTPL )		comprehensive
		income(FVOCI)

	Rs.	Rs.	Rs.	Rs.
Asset
Cash and cash equivalents	-	1,092,126,413	-	1,092,126,413
Repurchase Agreements	4,019,509,186	-	-	4,019,509,186
Placement with banks and other
financial institutions	-	3,396,148,362	-	3,396,148,362
Financial asset recognized through profit
or loss	4,101,420,824	-	-	4,101,420,824
Loans and receivables-Amortized cost	-	25,934,315,410	-	25,934,315,410
Lease rental receivables at amortized	-	22,844,376,760	-	22,844,376,760
Financial asset recognized through other
comprehensive income	-	-	418,007,339	418,007,339
Derivative financial assets	-	-	-	-
	8,120,930,010	53,266,966,945	418,007,339	61,805,904,294
Liabilities

Due to Depositors	-	30,607,800,176	-	30,607,800,176
Due to Banks	-	24,473,975,565	-	24,473,975,565
Derivative financial liabilities	-	99,612	-	99,612
	-	55,081,875,353	-	55,081,875,353
As at 30th June 2023

	Financial assets	Financial assets at	Financial assets at	Total
	recognized	amortized cost	fair value through
	through profit or	(AC)	other
	loss (FVTPL )		comprehensive
			income(FVOCI)
	Rs.	Rs.	Rs.	Rs.
Asset
Cash and cash equivalents	-	891,091,363	-	891,091,363
Repurchase agreements	100,383,562	-	-	100,383,562
Placement with banks and other
financial institutions	-	4,227,661,153	-	4,227,661,153
Financial asset recognized through profit
or loss	1,881,527,496	-	-	1,881,527,496
Loans and receivables-Amortized cost	-	17,448,596,059	-	17,448,596,059
Lease rental receivables at amortized	-	21,589,029,221	-	21,589,029,221
Financial asset recognized through other
comprehensive income	-	-	194,542,125	194,542,125
Derivative financial assets	-	-	-	-
	1,981,911,058	44,156,377,796	194,542,125	46,332,830,979
Liabilities

Due to Depositors	-	21,762,823,538	-	21,762,823,538
Due to Banks	-	19,452,510,660	-	19,452,510,660
Derivative financial liabilities	-	3,779,763	-	3,779,763
	-	41,219,113,961	-	41,219,113,961

Alliance Finance Company PLC

SEGMENT REPORT - GROUP		Please add t	Newly Added
For the three months ended 30th June

		Leaseing and Hire Purchase and	Loans		Gold Loans	Other		Total
		Consumer Durable

		LKR	LKR		LKR		LKR		LKR
		2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	Revenue	2,021,215,010	1,563,973,570	721,368,521	492,746,536	654,459,466	819,292,985	301,626,758	332,115,178	3,698,669,755	3,208,128,270
	Segment results	1,509,333,262	1,236,995,141	560,435,030	376,526,845	507,064,338	733,177,394	279,754,847	313,065,598	2,856,587,477	2,659,764,978
	Unallocated company expenses									(572,240,136)	(424,495,453)
	Operating profit									2,284,347,341	2,235,269,525
	Interest expenses	(588,587,308)	(947,547,182)	(387,746,386)	(352,048,362)	(280,444,443)	(417,495,610)	(340,023,864)	(316,963,118)	(1,596,802,001)	(2,034,054,273)
	Share of profits of associates before tax									9,533,545	4,521,208
	Taxes on financial services									(203,498,425)	(63,188,719)
	Income taxe expenses									(228,828,166)	(59,341,765)
	Profit for the year									264,752,294	83,205,977
	As at 31st March


	Segment assets	22,597,806,537	21,589,029,284	15,049,498,782	8,021,112,334	10,884,816,627	9,512,270,335	13,197,257,480	7,221,725,978	61,729,379,426	46,344,137,931
	Investment in associates									138,018,096	126,933,588
	Other assets									5,487,951,185	4,267,560,167
	Total assets									67,355,348,705	50,738,631,688

	Segment liabilities	20,909,101,342	19,061,386,273	12,706,732,057	6,678,170,180	9,190,369,086	7,919,669,673	11,142,830,492	6,012,621,773	53,949,032,977	39,671,847,899
	Other liabilities									5,014,070,685	3,805,944,831
	Total liabilities									58,963,103,662	43,477,792,729

Alliance Finance Company PLC

Explanatory Notes

These Interim Financial Statements have been prepared in accordance with the requirements of Sri Lanka Accounting Standard -LKAS 34 on'Interim Financial Reporting'.
The accounting policies adopted in the preparation of these Interim Condensed Consolidated Financial Statements are consistent with those followed in the preparation of the Company's Annual Consolidated Financial Statements for the year ended 31 March 2024.
Expected Credit Loss Computation
The Company's estimated Expected Credit Loss (ECL) was based on the Probability of Default (PD), Loss Given Default (LGD) and Economic Factor Adjustment (EFA) applying a range of forecasted economic conditions prevailed as at that date.
Given the uncertainty in the macroeconomic environment, an additional ECL impairment was made using a management overlay, alongside the modeled ECL impairment, to ensure that the overall ECL impairment is adequate to cover unforeseen risk factors in this volatile environment. The company will continue to monitor external developments and make further necessary adjustments to the management overlays in the future.
Going Concern
In determining the basis of preparing the Financial Statements for the quarter ended 30th June 2024, the management has assessed the existing and anticipated effects of macro economic factor fluctuations on the Company and the management is in the view of appropriateness of the use of the going concern basis.
Commitments & Contingencies

	30th June 2024	31st March 2024
	Rs.	Rs.
Commitments & Contingencies	904,890,967	820,666,741

Commitments & Contingencies represent the tax assessments issued by the Department of Inland Revenue. The Company has formally objected to the tax assessments stating the reasons on which the Company believes that assessments are arbitrary and excessive. Company has also actively engaged with the Department of Inland Revenue to conclude these pending assessments.

There are no significant changes in the nature of the Contingent Liabilities other than disclosed above.

There were no other material events that took place since March 2024, that require disclosure in these Interim Financial Statements other than mentioned below.
The company declared a final cash dividend of Rs 8.4 per share for the financial year ended 31st March 2024, which was approved at the Annual General Meeting on 28th June 2024 and is payable at the quarter end, 30th June 2024.
During the quarter, there were no material changes in the composition of assets, liabilities and/or contingent liabilities, other than those disclosed above.
All known expenses including management fees and other similar expenses have been provided for the year ended 30th June 2024.

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