Alliance Finance Company PlcCSELK: ALLI.N0000

Interim financial statements as at 30/06/2025

Aug 15, 2025 at 10:37 AM UTC · Issued by Alliance Finance Company Plc

Financial Statements

For the Three Months Ended 30th June 2025

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

For the period ended 30th June

				Group
				2025	2024
				(Unaudited)	(Unaudited)	Variance
				Rs.	Rs.	%
				4,425,147,134	3,698,669,755	20
Interest income	4,102,584,899	3,439,907,683		4,103,067,211	3,447,276,642
Interest expenses	(1,704,659,413)	(1,596,798,889)		(1,704,675,228)	(1,596,802,001)
Net Interest Income	2,397,925,486	1,843,108,794		2,398,391,983	1,850,474,641
Fee and Commission Income	121,943,071	90,598,721	35	158,009,147	121,246,301	30
Net gain/(loss) from trading	32,704,023	30,984,452	6	33,158,067	31,649,980	5
Other operating income (net)	120,452,555	96,208,955	25	130,912,709	98,496,832	33
Total Operating Income	2,673,025,135	2,060,900,922	30	2,720,471,906	2,101,867,754	29
Impairment (charges) / reversal for
loans and other losses	(223,389,667)		(5)		(211,746,894)	(5)
Net Operating Income	2,449,635,468		32		1,890,120,860	32
Operating Expenses
Personnel expenses	(645,101,522)	(502,893,763)		(650,201,910)	(508,011,301)
Other operating expenses	(755,432,377)	(636,070,366)		(760,276,772)	(644,328,243)
Depreciation and amortization	(57,800,577)	(50,079,264)		(57,884,428)	(50,235,976)
Total operating expenses	(1,458,334,476)	(1,189,043,393)		(1,468,363,110)	(1,202,575,520)
Operating Profit before Taxes on
Financial Services	991,300,992	660,110,633		1,028,719,129	687,545,340
Taxes on financial services	(278,581,666)	(203,498,425)	(37)	(278,581,666)	(203,498,425)	(37)
Operating Profit after Taxes on
Financial Services	712,719,326			750,137,463
Share of profit/(loss) from
associates	6,888,602			6,888,602
Profit before Taxation from
Operations	719,607,928			757,026,065
Provision for income taxation	(312,477,445)	(219,088,374)	(43)	(322,791,937)	(228,828,166)	(41)
Profit for the Period	407,130,483	247,057,379	65	434,234,128	264,752,294	64
Profit attributable to :
Equity holders of the Company	407,130,483	247,057,379	65	424,460,567	258,371,506	64
Non controlling interest	-	-	-	9,773,561	6,380,787	53
Profit for the Period	407,130,483	247,057,379		434,234,128	264,752,294
Basic/ Diluted earnings per share
(Annualised)	48.33	29.33		50.39	30.67
		1

Company
	2025	2024
	(Unaudited)	(Unaudited)	Variance
	Rs.	Rs.	%
Gross Income	4,377,684,548	3,657,699,811	20

(7)

(211,746,896)

1,849,154,026

(223,389,667)

2,497,082,239

(28)

(19)

(15)

(23)

(28)

(18)

(15)

(22)

456,612,208

9,533,545

466,145,753

(28)

484,046,915

9,533,545

493,580,460

(28)

Alliance Finance Company PLC Statement of Comprehensive Income

For the period ended 30th June

	2025 (Unaudited)	Company 2024 (Unaudited)	Variance		2025 (Unaudited)	Group 2024 (Unaudited)	Variance
	Rs.	Rs.	%		Rs.	Rs.	%
Profit for the period	407,130,483	247,057,379		65	434,234,128	264,752,294	64
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 earnings	15,419,834	9,431,346		63	15,419,834	9,431,346	63
Net Other Comprehensive Income not be Reclassified to Profit or Loss	15,419,834	9,431,346		63	15,419,834	9,431,346	63
Total Comprehensive Income for the period	422,550,316	256,488,725		65	449,653,962	274,183,640	64
Attributable to: Equity holders of the company	422,550,316	256,488,725	65		439,880,401	267,802,853	64
Non controlling interest	-	-			9,773,561	6,380,787	53
Total Comprehensive Income for the period	422,550,316	256,488,725			449,653,962	274,183,640

30.06.2025 (Unaudited) Rs.	Company 31.03.2025 (Audited) Rs.	Variance %	30.06.2025 (Unaudited) Rs.	Group 31.03.2025 (Audited) Rs.	Variance %
1,884,521,362	1,475,822,024	28	2,233,214,394	1,741,401,080	28
995,010,214	1,834,618,154	(46)	995,010,034	1,834,617,974	(46)
5,649,680,553	4,905,397,835	15	5,820,240,109	4,941,814,722	18
3,542,581,451	5,271,089,167	(33)	3,542,581,451	5,400,608,853	(34)
44,894,257,650	38,342,731,995	17	44,894,257,650	38,342,731,995	17
24,311,414,442	24,173,323,963	1	24,311,414,443	24,173,323,963	1
384,093,102	175,800,654	118	384,093,102	175,800,654	118
54,551,856	67,495,284	(19)	54,551,856	67,495,284	(19)
684,761,437	566,898,746	21	646,799,866	545,171,168	19
259,208,471	244,625,077	6	267,667,843	252,983,150	6
133,391,216	126,502,614	5	145,205,460	138,316,858	5
18,522,288	18,522,288	-	-	-	-
187,680,000	187,680,000	-	302,680,000	302,680,000	-
3,377,674,035	3,390,971,504	(0.4)	3,378,493,913	3,391,875,272	(0.39)
197,399,834	184,674,891	7	197,399,832	184,674,890	7
465,977,366	463,824,482	0	465,977,366	463,824,482	0
170,886,168	135,483,254	26	171,097,537	137,401,676	25
87,211,611,445	81,565,461,932	7	87,810,684,857	82,094,722,021	7

Alliance Finance Company PLC Statement of Financial Position

As at

Assets

Cash and cash equivalents Repurchase agreements Placements with banks & financial institutions

Financial assets recognised through profit

or loss

Loans and advances - at amortised cost Lease rentals receivable & stock out on hire

- at amortised cost

Financial assets- fair value through other comprehensive income

Other trading stocks

Other financial assets Other non financial assets Investments in associates Investments in subsidiaries Investment property

Property, plant & equipment Intangible assets

Right of use asset Deferred tax assets

Total Assets

Liabilities Due to banks

Debt Securities Measured at amortised cost Due to depositors - at amortised cost

Other financial liabilities Other non financial liabilities Income tax liabilities Retirement benefit liabilities Deferred tax liabilities

Lease Liability Total Liabilities

Shareholders' Funds Stated capital Retained earnings Reserves

Total Equity Attributable to Equity Holders of the Company

Non controlling interest Total Equity

Total Liabilities and Shareholders' Funds

Contingent Liabilities and Commitments Net assets value per share (Rs.)

34,055,755,637	30,341,711,845
1,039,798,667	1,012,406,801
37,645,679,900	36,524,836,317
2,179,605,588	1,537,657,682
183,191,885	191,818,324
1,424,578,589	1,370,124,514
19,170,250	87,094,962
745,119,385	704,224,787
456,632,566	446,054,835
77,749,532,467	72,215,930,068
613,980,000	613,980,000
5,753,212,231	5,656,084,950
3,094,886,747	3,079,466,914
9,462,078,978	9,349,531,864
-	-
9,462,078,978	9,349,531,864
87,211,611,445	81,565,461,932

1,507,878,412

277

(4)

(78)

34,172,339,426	30,397,669,512
1,039,798,667	1,012,406,801
37,644,824,298	36,523,989,296
2,234,840,956	1,609,980,121
183,191,887	191,818,324
1,443,589,748	1,388,527,363
25,138,393	92,785,154
750,811,937	711,624,397
456,632,566	446,054,835
77,951,167,877	72,374,855,804
613,980,000	613,980,000
5,971,265,893	5,856,808,525
3,094,886,748	3,079,466,914
9,680,132,641	9,550,255,439
179,384,339	169,610,778
9,859,516,980	9,719,866,217
87,810,684,857	82,094,722,021

1,507,878,412

283

(4)

(73)

1,495,303,560

287

1,495,303,560

281

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

14-08-2025

Colombo

Deputy Chairman & Managing Director

Alliance Finance Company PLC Statement of Changes in Equity

Rs.

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

Company

Balance as at 1st April 2024 (Audited)	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 2023/2024	-	-	-	-	-	-	(283,046,472)	(283,046,472)
Balances as at 30th June 2024 (Unaudited)	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

Balance as at 1st April 2025 (Audited)	613,980,000	1,135,067,857	1,568,458,553	388,258,055	(12,317,552)	-	5,656,084,948	9,349,531,861
Profit for the period	-	-	-	-	-	-	407,130,483	407,130,483
Other comprehensive income, net of tax
Equity investments at FVOCI - net change in fair value &
Disposal profit	-	-	-	-	15,419,834	-	-	15,419,834
Dividend Payable-FY 2023/2024	-	-	-	-	-	-	(310,003,200)	(310,003,200)
Balances as at 30th June 2025 (Unaudited)	613,980,000	1,135,067,857	1,568,458,553	388,258,055	3,102,282	-	5,753,212,231	9,462,078,978

Group	Stated Capital	Statutory Reserve Fund	Revaluation Reserve	General Reserve	FVOCI	Non Controlling Interest	Retained Earnings	Total
	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.
Balance as at 1st April 2024 (Audited)	613,980,000	1,048,326,205	1,593,798,551	388,258,055	(25,273,504)	132,528,954	4,675,362,989	8,426,981,250
Profit for the period	-	-	-	-	-	6,380,787	258,371,506	264,752,293
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 2023/2024	-	-	-	-	-	-	(283,046,472)	(283,046,472)
Balances as at 30th June 2024 (Unaudited)	613,980,000	1,048,326,205	1,567,925,177	388,258,055	(15,842,158)	138,909,741	4,650,688,023	8,392,245,043

Balance as at 1st April 2025 (Audited)	613,980,000	1,135,067,858	1,568,458,553	388,258,055	(12,317,552)	169,610,778	5,856,808,525	9,719,866,217
Profit for the period	-	-	-	-	-	9,773,561	424,460,567	434,234,128
Other comprehensive income, net of tax -
Equity investments at FVOCI - net change in fair value &
Disposal profit	-	-	-	-	15,419,834	-	-	15,419,834
Dividend Payable-FY 2023/2024	-	-	-	-	-	-	(310,003,200)	(310,003,200)
Balances as at 30th June 2025 (Unaudited)	613,980,000	1,135,067,858	1,568,458,553	388,258,055	3,102,282	179,384,339	5,971,265,892	9,859,516,980

Figures in brackets indicate deductions.

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

Alliance Finance Company PLC Statement of Cash Flows

Company 2025 2024 (Unaudited) (Unaudited) Rs. Rs.
719,607,928	466,145,753
55,299,708	47,148,503
2,500,869	2,930,761
656,959,758	585,106,465
27,391,866	-
39,980,076	33,298,354
15,007,352	12,289,775
217,069,547	174,008,932
(105,292,510)	(105,126,177)
(9,479,852)	(6,965,533)
6,320,119	37,737,964
(1,113,350)	(4,380,577)
(11,481,978)	(10,396,197)
22,500,000	7,071,405
(105,126)	(7,051,138)
(6,888,602)	(9,533,545)
1,628,275,805	1,222,284,745
(2,390,283)	(36,774,919)
(6,687,291,100)	(2,534,892,987)
(225,714,700)	(351,485,679)
95,325,222	(3,206,697,704)
(117,862,691)	(65,064,678)
30,419,189	79,684,649
-	(5,279,500)
1,120,843,583	2,220,434,927
327,515,084	(3,482,535)
(8,626,439)	(62,166,912)
(3,839,506,331)	(2,743,440,593)
(3,329,750)	3,753,034
(87,094,962)	-
(252,531,639)	(33,860,451)
(4,182,462,682)	(2,773,548,010)
(42,365,264)	(123,804,818)
(42,132,960)	(22,227,009)
(15,225,812)	(18,975,232)
1,476,375	14,775,000
26,815,689	2,791,358
1,545,114,954	(676,358,832)
105,126	7,051,138
105,292,510	105,126,177
1,579,080,618	(711,622,218)
(45,002,583)	(38,894,825)
7,541,129,863	6,350,000,000
(3,648,877,903)	(2,614,300,067)
3,847,249,377	3,696,805,108
1,243,867,313	211,634,878
(2,102,843,801)	(283,171,510)
(858,976,488)	(71,536,632)
1,243,867,313	211,634,878

Group 2025 (Unaudited) Rs.		2024 (Unaudited) Rs.
757,026,065	493,580,460
55,383,559	47,257,428
2,500,869	2,978,548
656,959,758	585,106,465
27,391,866	-
39,980,076	33,298,354
15,007,352	12,289,775
217,069,547	174,008,932
(105,774,822)	(112,495,136)
(9,479,852)	(6,965,533)
6,320,119	37,737,963
(1,113,350)	(4,380,577)
(11,481,978)	(10,396,197)
22,777,952	7,350,612
(8,560,806)	(7,051,138)
(6,888,602)	(9,533,545)
1,657,117,754	1,242,786,411
(2,390,283)	(36,774,919)
(6,687,291,100)	(2,534,892,987)
(225,714,700)	(351,485,679)
(38,817,447)	(3,218,232,662)
(101,628,698)	(53,665,716)
30,317,890	78,892,468
-	(5,279,500)
1,120,835,002	2,220,426,245
310,428,013	17,243,837
(8,626,439)	(62,166,912)
(3,945,770,009)	(2,703,149,414)
(3,329,750)	3,553,033
(87,094,962)	-
(262,237,824)	(39,707,663)
(4,298,432,545)	(2,739,304,043)
(42,365,225)	(123,804,818)
(42,132,960)	(22,227,009)
(15,225,811)	(18,975,232)
1,476,375	14,775,000
26,815,689	2,791,358
1,674,634,640	(676,358,832)
8,560,804	7,051,138
105,774,822	112,495,131
1,717,538,334	(704,253,264)
(45,002,583)	(38,894,825)
7,541,129,863	6,350,000,000
(3,648,877,903)	(2,614,300,067)
3,847,249,377	3,696,805,108
1,266,355,167	253,247,800
(1,893,222,412)	(183,851,096)
(626,867,245)	69,396,706
1,266,355,167	253,247,800

For the period ended 30th June

Cash Flows From / (Used in) Operating Activities Profit before Income Tax Expense

Adjustments for;

Depreciation of property, plant & equipment Amortization of intangible assets

Interest Expenses of Bank Borrowings Interest on debentures

Amortization of Right of use asset Interest expense on lease liability Impairment (reversal)/provision

Interest on fixed deposits, commercial paper & treasury bills Fair value (gain)/loss on equity investments (FVTPL)

Bad debt written-off

Loss/(profit) on disposal of property, plant & equipment Profit from sale of vehicle

Provision/(reversal) for defined benefit plans Dividend received

Share of loss/(profit) from associates

Operating Profit before Working Capital Changes

(Increase)/decrease in trading stock (Increase)/decrease in loans and advances

(Increase)/decrease in lease rentals receivable & stock out on hire

(Increase)/decrease in fixed deposits & repurchase agreements (Increase)/decrease in other financial assets (Increase)/decrease in other non financial assets

Increase/(decrease) in derivative financial liabilities Increase/(decrease) in amounts due to depositors Increase/(decrease) in other financial liabilities Increase/(decrease) in other non financial liabilities

Cash generated from/(used in) Operations Retirement benefit liabilities paid Investment in gratuity fund

Taxes paid

Net cash generated from/(used in) operating activities

Cash Flows from / (Used in) Investing Activities Acquisition of property, plant & equipment Acquisition of right of use assets

Acquisition of Intangible Assets

Proceeds from sales of property, plant & equipment Proceeds from sales of vehicles

Net sales/ (purchases) of financial assets -FVTPL/FVTOCI Dividend received

Interest on fixed deposits, commercial paper & treasury bills Net Cash Generated from Investing Activities

Cash Flows from / (Used in) Financing Activities Settlement of operating lease liabilities

Loans Obtained

Loans Repayments

Net Cash Generated from/(Used in) Financing Activities

Net Increase/(Decrease) in Cash and Cash Equivalents

Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the period * Movement in Cash and Cash Equivalent

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
As at
	Quoted Prices in Active Markets Level 1 Rs.	Fair Value Measurement using
		Significant Significant
		Inputs
		Level 2 Level 3		Total
30th June 2025		Rs. Rs.		Rs.
Financial Assets
Financial assets - Fair value through profit
and loss
Government of Sri Lanka treasury bills	-	3,017,504,338	-	3,017,504,338
Investments in Unit Trusts	525,077,113	-	-	525,077,113
Financial assets - Fair value through Other
Comprehensive Income
Quoted Investments	383,513,852	-	-	383,513,852
Unquoted Investments	-	-	579,250	579,250
	908,590,965	3,017,504,338	579,250	3,926,674,553

Financial Liabilities
Due to Depositors	-	37,645,679,900	-	37,645,679,900
Due to Banks	-	34,055,755,637	-	34,055,755,637
Debt Securities Measured at amortised cost	-	1,039,798,667		1,039,798,667
Derivative financial liabilities	-	-	-	-
	-	72,741,234,204	-	72,741,234,204

30th June 2024

Financial assets

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

Financial 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

Alliance Finance Company PLC

Analysis Of Financial Statements Measurement Basis - Company

As at

	Financial assets recognized through profit or loss (FVTPL )	Financial assets at amortized cost (AC)	Financial assets at fair value through other comprehensive income(FVOCI)	Total
30th June 2025	Rs.	Rs.	Rs.	Rs.
Asset
Cash and cash equivalents	-	1,884,521,362	-	1,884,521,362
Repurchase Agreements	995,010,214	-	-	995,010,214
Placement with banks and other financial institutions	-	5,649,680,553	-	5,649,680,553
Financial asset recognized through profit or loss	3,542,581,451	-	-	3,542,581,451
Loans and receivables-Amortized cost	-	44,894,257,650	-	44,894,257,650
Lease rental receivables at amortized cost	-	24,311,414,442	-	24,311,414,442
Financial asset recognized through other comprehensive income	-	-	384,093,102	384,093,102
Other financial assets		684,761,437		684,761,437
	4,537,591,665	77,424,635,444	384,093,102	82,346,320,211

Liabilities
Due to Depositors	-	37,645,679,900	-	37,645,679,900
Due to Banks	-	34,055,755,637	-	34,055,755,637
Debt Securities Measured at amortised cost		1,039,798,667
Other financial liabilities		2,179,605,588		2,179,605,588
	-	74,920,839,792	-	73,881,041,125

30th June 2024

	Financial assets recognized through profit or loss (FVTPL )	Financial assets at amortized cost (AC)	Financial assets at fair value through other comprehensive income(FVOCI)	Total
	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 cost	-	22,844,376,760	-	22,844,376,760
Financial asset recognized through other comprehensive income	-	-	418,007,339	418,007,339
Other financial assets		523,696,219		523,696,219
	8,120,930,010	53,790,663,164	418,007,339	62,329,600,513
Liabilities
Due to Depositors	-	36,524,836,317	-	36,524,836,317
Due to Banks	-	30,341,711,845	-	30,341,711,845
Derivative financial liabilities	-	99,612	-	99,612
Other financial liabilities		1,429,712,343		1,429,712,343
	-	68,296,360,117	-	68,296,360,117

Alliance Finance Company PLC

SEGMENT REPORT - GROUP

For the Period ended 30th June

Revenue

Segment results

Unallocated company expenses Operating profit

Interest expenses

Share of profits of associates before tax Taxes on financial services

Income taxe expenses

Profit for the year

As at 30th June 2025 Segment assets Investment in associates Other assets

Total assets Segment liabilities Other liabilities Total liabilities

Leasing and Hire Purchase and

Consumer Durable

Loans

Gold Loans

Other

Total

Rs.

2025 2024

Rs.

2025 2024

Rs.

2025 2024

Rs.

2025 2024

2025

2024

2,070,302,867

1,534,416,845

(510,054,629)

2,021,215,010

1,509,333,262

(588,587,308)

1,129,090,756

976,123,660

(589,649,892)

721,368,521

560,435,030

(387,746,386)

893,124,668

718,924,115

(352,233,764)

654,459,466

507,064,338

(280,444,443)

332,628,842

308,552,493

(252,736,934)

301,626,758

279,754,847

(340,023,864)

4,425,147,134

3,538,017,113

(804,622,756)

2,733,394,357

(1,704,675,228)

6,888,602

(278,581,666)

(322,791,937)

3,698,669,755

2,856,587,477

(572,240,136)

2,284,347,341

(1,596,802,001)

9,533,545

(203,498,425)

(228,828,166)

434,234,128

264,752,294

24,311,414,443

22,593,623,412

22,597,806,537

20,909,101,342

28,105,269,714

23,799,564,391

15,049,498,782

12,706,732,057

16,788,987,936

14,216,928,124

10,884,816,627

9,190,369,086

12,046,538,194

11,240,816,585

13,197,257,480

11,142,830,492

81,252,210,287

145,205,460

6,413,269,110

61,729,379,426

138,018,096

5,487,951,185

87,810,684,857

67,355,348,705

71,850,932,512

6,100,235,365

53,949,032,977

5,014,070,685

77,951,167,877

58,963,103,662

Alliance Finance Company PLC

Explanatory Notes

1	These Interim Financial Statements have been prepared in accordance with the requirements of Sri Lanka Accounting Standard -LKAS 34 on'Interim Financial Reporting'.

2	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 2025.

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 2025, the management has assessed the existing and anticipated

impact of macroeconomic fluctuations on the Company and is of the view that the use of the going concern basis is appropriate. .

5	Contingent Liabilities and Commitements
	a. Financial guarantees Issued :
	As at 30th June 2025, the Company has provided financial guarantees totalling to LKR 1.5Mn.
	b.Tax assessments issued by the Commissioner General of Inland revenue:
	For the year of assessment 2014/15, an additional income tax liability amounting to LKR 124.47 Mn was assessed, comprising LKR 88.5 Mn in income tax and LKR 35.97 Mn in interest. The company has appealed this assessment. While a determination has been issued by the Commissioner General of Inland Revenue, a final decision from the Tax Appeal Commission remains pending.
	For the taxable periods 2018/19 and 2020/21, the Commissioner General issued additional income tax assessment notices amounting to a total of LKR 820 Mn, consisting of LKR 537.9 Mn in income tax and LKR 282.1 Mn in interest.
	Furthermore, an additional surcharge tax assessment has been issued for the 2020/21 period, amounting to LKR 892.64 Mn, comprising LKR 628.6 Mn in surcharge tax and LKR 264.02 Mn in interest.
	Following a detailed assessment of the circumstances and the relevant tax legislation, management is of the view that there are strong and valid grounds to challenge these assessments. Accordingly, the company has initiated appeals seeking administrative review of the said assessments.
	There are no significant changes in the nature of the Contingent Liabilities other than disclosed above.

There have been no material events occurring after the Reporting date which require adjustments to or disclosure in the financial statements other than

below.

The Company declared a final cash dividend of Rs. 9.20 per share for the financial year ended 31st March 2025,Which was approved at the Annual General Meeting on 30th June 2025 and is payable at the quarter end 30th June 2025.

8	During the quarter, there were no material changes in the composition of assets, liabilities and/or contingent liabilities, other than those disclosed above.

9	All known expenses including management fees and other similar expenses have been provided for the period ended 30th June 2025.

Alliance Finance Company PLC

Explanatory Notes (Continued.)

10 Disclosure Regarding the utilization of fund as per the objectives stated the green bond issue prospectus

Objectives Stated in the Green Bond Issue Prospectus

Objective Number

Objective as per Prospectus

Amount allocated as per Prospectus (LKR)

Proposed Date of allocation as per Prospectus

Amount

allocated from proceeds

(LKR) (A)

% of Total Proceeds

Amount utilized (LKR) (B)

% of utilization against allocation (B/A)

Clarification if not fully utilized including where the funds are invested

Financing rooftop solar energy installations to reduce greenhouse gas emissions and increase renewable energy in Sri

Lanka's National

1,000 Mn (Maximum Issuance)

Over a period of 24 months from the Date of Allotment

800 Mn

Approximately 80%

208 Mn

26%

Funds would be invested in cash equivalents, T-bills, T-bonds, or FDs (excluding greenhouse gas-intensive activities) at the prevailing rates at the time of investments.

Financing solar equipment vendors and suppliers to strengthen the supply chain for renewable energy projects, ensuring efficient implementation

and growth of solar

Over a period of 24 months from the Date of Allotment

200 Mn

Approximately 20%

Selected Performance Indicators
	30/06/2025	30/06/2024
Capital Adequacy (%)
Tier 1 Capital Adequacy Ratio (minimum 8.5%)	10.27%	11.31%
Total Capital Adequacy Ratio (minimum 12.5%)	14.32%	13.97%
Capital Funds to Deposit Liabilities Ratio	24.04%	21.43%
Profitability (%)
Return on average shareholders funds (before tax)	30.60%	23.01%
Return on average assets (before tax)	3.41%	2.93%
Liquidity ('000)
Required Minimum Amount of Liquid Assets	3,919,087	3,106,211
Available Amount of Liquid Assets	5,397,782	9,142,776
Required Minimum Amount of Government Securities	2,437,124	1,779,203
Available Amount of Government Securities	3,906,481	8,293,311
Quality of Loan Portfolio (%)
Gross Non-Performing Loans Ratio	5.54%	9.42%
Net-Non-Performing Loans Ratio	2.56%	5.49%
Other Ratios
Debt to equity ratio (times)	7.74	6.86
Interest cover (times)	1.58	1.41
Liquid Asset Raio ratio (%)	13.85%	13.82%

Alliance Finance Company PLC

Explanatory Notes (Continued.)

* Information on -Lised Debentures

Debenture Category

Interest Payable frequency

Effective Rate

Applicable Interest Rate

Interest Rate of comparative government securities (Gross) p.a%

Balance as at 30th June 2025

Market Price LKR

Yield Last Traded

Highest

Lowest

Last Traded

N/T

Listed,

Rated, Guaranteed, Senior, Redeemable Green

Semi-annually

11.03%

10.75% p.a

9.85%

1,012,406,801

N/T

N/T=Not Traded N/A =Not Applicable Shareholder's Information
Market price per share
Quarter ended 01st April to 30th June 2025
	2025	2024
Highest Price
Lowest Price	375.00	115.50
Last Traded	167.50	90.50
	367.75	112.00
Stated capital As at 30th June 2025 the Stated Capital was Rs. 613,980,000/- comprising of 33,696,000 ordinary shares issued.
Directors'/ CEO's Holding in Shares as at 30th June 2025
No Name of Director	No. of Shares
1 Mrs.G.S.T. Dharmakirti-Herath	100
2 Mr.R.K.E.P. de Silva	12,423,830
3 Mr.W.P.K. Jayawardana	42,750
4 Mr.M.J. Benedict	1,000
5 Mrs.P. De Silva	100
6 Mr.L.J.H. De Silva	3,052
7 Dr.D.L.I. Hettiarachchi	100
8 Mr.D.F.W. Perera	363,243
9 Dr.S.L.N. Wickramsooriya	1,000

Twenty Largest Ordinary Shareholders as at 30th June 2025

No. Name of Shareholder No. of Shares %

1 Mr.R.K.E.P. de Silva		12,423,830	36.87
2 Motor Service Station (Pvt) Ltd.,		4,647,133	13.79
3 Mrs D.M.E.P. Perera		2,564,862	7.61
4 Mr.D.F.W.S.K. Perera & Mr.D.F.W. Perera (Joint)		1,483,984	4.40
5 Orient Hotels Ltd.,		1,358,323	4.03
6 Mrs.S.E. Canekeratne		612,268	1.82
7 J B Cocoshell (Pvt) Ltd.		533,200	1.58
8 Mr.D.L.S.R. Perera		412,266	1.22
9 Mrs.C.R. de Silva		374,400	1.11
10 Mr. D.F.W. Perera		363,243	1.08
11 Ms.D.C.M.A. Perera		361,042	1.07
12 Hatton National Bank PLC/Mr.K.K. Shujeevan		334,434	0.99
13 Ms.D.D.P.T. Perera		319,384	0.95
14 Mrs.P.N. Weththasinghe		299,975	0.89
15 Mr.W.G.D.C. Ranaweera		214,414	0.64
16 Mr.G.P. Kapilasena		201,180	0.60
17 Mrs.K.G.G.S.L. Perera		201,066	0.60
18 Mrs.N.U. Silva		172,105	0.51
19 Mrs.C. Yogagopalakrishnan & Mrs.Y. Thirukumar		155,920	0.46
20 Mr.D.L.S.R. Perera & Mrs. D.C.M.A Perera		146,290	0.43
	11

Alliance Finance Company PLC

Shareholders' Information

Public Shareholding as at 30th June 2025

No of Shares	%
11,904,575	35.33

No of Shareholders

The percentage of ordinary shares held by the public as at 30th June was 35.33% and the number of shareholders representing

the public holding was 1946.

Float Adjusted Market Capitalization

The Float adjusted market capitalization as at 30th June 2025- Rs. 4,377,907,456.25 and the Company falls under Option 5 of Rule 7.13.1 (a), of the Listing Rules of the Colombo Stock Exchange and the Company has complied with the minimum public

holding requirement applicable under the said option.

Alliance Finance Company PLC

Corporate Information

Name of the Company

Alliance Finance Company PLC

Human Resources & Remuneration Committee

Dr.Lasantha Hettiarachchi - Chairman

Mrs.Tamara Dharmakirti Herath

Mr.Hiran de Silva

Statutory Status

Quoted Public Limited Liability Company, Incorporated on 18th July 1956. Approved and registered under the Finance Business Act No.42 of 2011 and Finance Leasing Act No.56 of 2000. An approved Credit Agency under the Mortgage Act No.06 of 1949 and the Trust receipt

Ordinance No.12 of 1947.

Registered Office

Alliance House, No.84, Ward Place, Colombo 07.

Tel : 011 2673673 Fax: 011 2697205

e mail : info@alliancefinance.lk

Nominations & Governance Committee

Dr.Lasantha Hettiarachchi - Chairman

Mrs.Tamara Dharmakirti Herath

Mr.Hiran de Silva

Board of Directors	Auditors
Mrs.Tamara Dharmakirti Herath - Chairperson	M/s Deloitte Associates
Mr. Romani de Silva - F.I.C.M.(SL) - Deputy Chairman / Managing Director	Chartered Accountants,
	No.100, Braybrooke Place
Mr.Kusal Jayawardana - CFA, MBA, ACMA. CGMA - Deputy Managing Director	Colombo 02.
Mr. Michael Joseph Benedict - MBA, CMA, CMSLIM - Executive Director Recoveries
Mrs. Priyanthi de Silva - FCMA, CGMA, FCPA - Independent Non Executive Director	Bankers
	Sampath Bank PLC
Mr.Hiran de Silva -Non Independent Non Executive Director	Seylan Bank PLC
Dr. Lasantha Ivers Hettiarachchi - LLM,DCL, Attorney at Law -Independent Non Executive Director	Public Bank Berhad
	People's Bank
Mr. Wiyan Perera - Bsc. (Econ) - Non Independent Non Executive Director	Hatton National Bank PLC
Dr. Lasantha Wickremasooriya - DBA (Col), MBA (SRIJ) FICM,FABG -Non Independent Non Executive Director	Commercial Bank of Ceylon PLC
	Bank of Ceylon
	Nations Trust Bank PLC
Company Secretary	Union Bank of Colombo PLC
Priyanga P. Peiris	DFCC Bank PLC
No. 84, Ward Place	NDB Bank PLC
Colombo 07.	Cargills Bank

Legal Consultants

Gunawardene Associates

Sudath Perera Associates

Board Audit Committee

Mrs. Priyanthi de Silva - Chairperson

Mrs.Tamara Dharmakirti Herath

Mr.Hiran de Silva

Related Party Transaction Review Committee

Dr.Lasantha Hettiarachchi - Chairman

Mrs.Tamara Dharmakirti Herath

Mr.Hiran de Silva

Board Integrated Risk Management Committee

Mrs. Priyanthi de Silva - Chairperson

Mrs.Tamara Dharmakirti Herath

Mr.Hiran de Silva

Company Registration

Registered under the Companies Act No.07 of 2007.

Company Registration number PQ 93.

Earlier from Alliance Finance

All Alliance Finance news releases