CAPITAL ALLIANCE LIMITED
INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2021
Capital Alliance Limited
Financial Results for the period ended 31st December 2021
The Company closed the nine months ended 31st December 2021 with a post-tax loss of Rs. 154 Mn, a notable drop over the performance in the corresponding period mainly due to upward movement in interest rates during the period.
Statement of Financial Performance
Net interest income decreased by 48.6% to LKR 161 Mn during the period under review.
Trading activities has recorded a net loss of Rs.190 Mn compared to net gain from trading of Rs. 1,217 Mn in 9 months ended 31st December 2020 mainly due to the upward movement in interest rates during the period. Net Gain/(loss) from trading consists of Rs.255 Mn net loss on Govt. Securities and 65 Mn gain on Quoted Shares.
Total Operating Expenses decreased by 30.2% from Rs. 235 Mn to Rs.164 Mn
Statement of Financial Position
The Company reported a significant decline in the Total Assets by 59% to 4.8 Bn since company has reduced its exposure to Government Securities in view of increase in interest rates.
Total Liabilities of the Company also declined by 77% to 2.1 Bn mainly due to the reduction in Securities Sold Under Repurchase Agreements.
Key Financial Ratios and Indicators
Capital Alliance Limited has recorded Risk Weighted Capital Adequacy Ratio of 346.9% (Minimum 10%) as at 31st December 2021.
The Company's Earnings/(loss) per Share (EPS) reduced to Rs. (0.49) from Rs 3.46 in comparable period. Company recorded a Return (Before Tax) on Average Assets (ROA) of -3.03% and Return on Equity (ROE) of -7.6% for the period. The Company's Net Assets Value per share as at 31st December 2021 was Rs. 8.14 compared to Rs.9.45 as at 31st March 2021.
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CAPITAL ALLIANCE LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE | QUARTER ENDED | NINE MONTHS ENDED | ||||||
31-Dec-21 | 31-Dec-20 | 31-Dec-21 | 31-Dec-20 | |||||
Note | Rs. | Rs. | Rs. | Rs. | ||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
Interest Income | 2 | 159,937,408 | 239,823,301 | 381,409,698 | 914,902,308 | |||
Interest Expenses | 3 | (86,557,003) | (151,967,399) | (220,335,761) | (601,539,557) | |||
Net Interest Income | 73,380,405 | 87,855,902 | 161,073,937 | 313,362,751 | ||||
Net Gain/(Loss) from Trading | 4.1 | (190,221,437) | 36,725,135 | (215,002,060) | 1,296,235,956 | |||
Direct Expenses | (1,890,969) | (3,223,072) | (5,040,919) | (12,892,693) | ||||
Other Income | 1,009,159 | 82,779 | 7,414,574 | 4,102,813 | ||||
Net Gain/(Loss) from remeasurement of Financial Assets at FVTPL | 4.2 | 8,980,689 | (16,603,818) | 25,338,560 | (79,355,987) | |||
Net Operating Income | (108,742,153) | 104,836,926 | (26,215,908) | 1,521,452,840 | ||||
Operating Expenses | ||||||||
Personnel Expenses | (31,601,906) | (38,695,098) | (82,313,485) | (177,124,841) | ||||
Depreciation and Amortisation | (1,865,039) | (2,331,042) | (6,060,341) | (7,167,676) | ||||
Other Expenses | (30,473,423) | (12,952,872) | (70,699,447) | (37,809,389) | ||||
Profit/(Loss) Before Tax | (172,682,521) | 50,857,914 | (185,289,182) | 1,299,350,934 | ||||
Income Tax Expenses | 5 | 27,317,790 | (12,719,696) | 31,095,271 | (302,045,249) | |||
Profit/(Loss) for the period | (145,364,731) | 38,138,218 | (154,193,911) | 997,305,685 | ||||
Other Comprehensive Income/(Loss) | ||||||||
Items that will never be reclassified to profit or loss | - | - | - | - | ||||
Items that are or may be reclassified to profit or loss | - | - | - | - | ||||
Other Comprehensive Income/(Loss) for the period | - | - | - | - | ||||
Total Comprehensive Income/(Loss) for the period | (145,364,731) | 38,138,218 | (154,193,911) | 997,305,685 | ||||
Basic/Diluted Earnings/(Loss) per Share (Rs.) | 6 | (0.49) | 0.13 | (0.53) | 3.46 | |||
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CAPITAL ALLIANCE LIMITED
STATEMENT OF FINANCIAL POSITION | |||
AS AT | 31-Dec-21 | 31-Mar-21 | |
Rs. | Rs. | ||
(Unaudited) | (Audited) | ||
ASSETS | |||
Cash and Cash Equivalents | 87,852,469 | 10,472,382 | |
Financial Assets measured at Amortised Cost | 2,091,605,885 | 47,184,373 | |
Financial Assets measured at FVTPL | 2,482,626,526 | 11,464,111,249 | |
Amount due from Related Companies | 5,889,347 | 3,437,023 | |
Financial Assets measured at FVOCI | 1,000,000 | 1,000,000 | |
Other Receivables | 12,827,175 | 10,097,759 | |
Deferred Tax Asset | 40,496,798 | 9,401,526 | |
Intangible Assets | 931,586 | 2,541,625 | |
Right-of-use Asset | 10,730,916 | 13,413,645 | |
Equipment | 3,543,291 | 2,992,394 | |
Total Assets | 4,737,503,993 | 11,564,651,976 | |
LIABILITIES AND EQUITY | |||
Liabilities | |||
Bank Overdraft | 203,000 | - | |
Financial Liabilities at Amortised Cost | 1,878,856,911 | 8,461,113,826 | |
Amounts due to Related Companies | 10,491,986 | 86,857,147 | |
Other Payables | 97,768,469 | 78,590,712 | |
Lease Liability | 11,179,202 | 13,550,810 | |
Retirement Benefit Obligation | 44,332,131 | 40,783,555 | |
Income Tax Payable | 13,897,222 | 160,308,628 | |
Total Liabilities | 2,056,728,921 | 8,841,204,678 | |
EQUITY | |||
Stated Capital | 723,348,421 | 311,576,061 | |
Special Risk Reserve | 629,379,626 | 644,799,017 | |
Retained Earnings | 1,328,047,025 | 1,767,072,220 | |
Total Equity | 2,680,775,072 | 2,723,447,298 | |
Total Liabilities and Equity | 4,737,503,993 | 11,564,651,976 | |
NAPS (Rs.) | 8.14 | 9.45 | |
These financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
(Sgd.)
Mr. Yasantha Kumara
Financial Controller
The Board of Directors is responsible for the preparation and presentation of these consolidated financial statements.
(Sgd.) | (Sgd.) |
Mr. W A T Fernando | Mr. C S R S Anthony |
Director | Director |
25th January 2022 | |
Colombo |
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CAPITAL ALLIANCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31ST DECEMBER 2021 | |||||||||||
Stated Capital | Special Risk | Retained | Total | ||||||||
Reserve | Earnings | ||||||||||
Rs. | Rs. | Rs. | Rs. | ||||||||
Balance as at 01st April 2020 | 311,576,061 | 548,150,903 | 1,150,574,363 | 2,010,301,327 | |||||||
Profit for the Period | - | - | 997,305,685 | 997,305,685 | |||||||
Other Comprehensive Income for the Period | - | - | - | - | |||||||
Total Comprehensive Income | - | - | 997,305,685 | 997,305,685 | |||||||
Dividend Paid | - | - | (249,808,559) | (249,808,559) | |||||||
Transferred To the Special Risk Reserve | - | 99,730,568 | (99,730,568) | - | |||||||
Balance as at 31st December 2020 | |||||||||||
311,576,061 | 647,881,471 | 1,798,340,920 | 2,757,798,453 | ||||||||
Balance as at 01st April 2021 | |||||||||||
311,576,061 | 644,799,017 | 1,767,072,220 | 2,723,447,298 | ||||||||
Profit/(Loss) for the Period | - | - | (154,193,911) | (154,193,911) | |||||||
Other Comprehensive Income/(Expense) for the Period | - | - | - | - | |||||||
Total Comprehensive Income/(Expense) | - | - | (154,193,911) | (154,193,911) | |||||||
Dividend Paid | - | - | (300,250,675) | (300,250,675) | |||||||
Transferred To the Special Risk Reserve | - | (15,419,391) | 15,419,391 | - | |||||||
Ordinary Share Capital Issued-IPO | 411,772,360 | - | - | 411,772,360 | |||||||
Balance as at 31st December 2021 | |||||||||||
723,348,421 | 629,379,626 | 1,328,047,025 | 2,680,775,072 | ||||||||
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