Capital Alliance PlcCSELK: CALT.N0000

Interim Financial Statements for the period ended 30th September 2024

Oct 28, 2024 at 11:35 AM UTC · Issued by Capital Alliance Plc

CAPITAL ALLIANCE PLC

INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2024

CAPITAL ALLIANCE PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE		QUARTER ENDED		SIX MONTHS ENDED
		30-Sep-24		30-Sep-23		30-Sep-24	30-Sep-23
	Note	Rs.		Rs.		Rs.	Rs.
		(Unaudited)		(Unaudited)		(Unaudited)	(Unaudited)
Interest Income	2	2,104,986,859	2,756,349,054	4,080,087,849	5,392,068,467
Interest Expenses	3	(1,379,644,509)		(1,678,594,134)		(2,487,002,432)	(3,434,866,490)
Net Interest Income		725,342,350	1,077,754,920	1,593,085,417	1,957,201,977
Gains and (Losses) arise from Financial Assets
Measured at FVTPL	4	(75,416,532)	13,493,712,075	750,604,403	17,124,766,594
Direct Expenses		(9,382,030)	(7,430,211)	(17,177,068)	(13,580,615)
Other Income		8,871,647	412,982	31,063,442	406,860

Net Operating Income		649,415,435	14,564,449,766	2,357,576,194	19,068,794,816
Operating Expenses
Personnel Expenses		(52,939,751)	(33,653,993)	(100,126,693)	(66,982,247)
Depreciation and Amortisation		(4,784,731)	(4,506,509)	(9,628,452)	(6,238,083)
Other Expenses		(127,666,669)	(233,099,209)	(228,960,187)	(424,831,496)

Profit Before Tax		464,024,284	14,293,190,055	2,018,860,862	18,570,742,990
Income Tax Expenses	5	(177,773,887)	(4,354,086,623)	(636,661,504)	(5,687,959,010)

Profit for the period		286,250,397	9,939,103,432	1,382,199,358	12,882,783,980
Other Comprehensive Income

Other Comprehensive Income for the period		-		-		-	-

Total Comprehensive Income for the period		286,250,397		9,939,103,432		1,382,199,358	12,882,783,980

Basic/Diluted Earnings per Share (Rs.)	6	0.87	30.17	4.20	39.11
Figures in brackets indicate deductions.

CAPITAL ALLIANCE PLC

STATEMENT OF FINANCIAL POSITION

AS AT	30-Sep-24		31-Mar-24
	Rs.		Rs.
	(Unaudited)		(Audited)
ASSETS
Cash and Cash Equivalents	51,677,652	353,008,092
Financial Assets measured at Amortised Cost	3,520,479,269	1,015,901,338
Financial Assets measured at FVTPL	71,204,635,894	59,533,287,818
Amount due from Related Companies	10,122,567	11,766,209
Trade and Other Receivables	21,941,632	260,547,704
Deferred Tax Asset	25,563,004	24,583,978
Intangible Assets	3,802,266	4,506,832
Right-of-use Asset	1,018,653	3,055,983
Equipment	46,248,707	51,569,663

Total Assets	74,885,489,644	61,258,227,617
LIABILITIES AND EQUITY

Liabilities
Financial Liabilities at Amortised Cost	61,746,342,760	37,346,396,228
Amounts due to Related Companies	7,189,216	61,846,733
Other Payables	1,081,301,302	2,740,283,723
Lease Liability	1,268,477	3,716,278
Retirement Benefit Obligation	84,895,583	81,309,710
Income Tax Payable	609,054,579		4,627,787,838
Total Liabilities	63,530,051,917	44,861,340,510
EQUITY
Stated Capital	723,348,421	723,348,421
Special Risk Reserve	2,455,037,966	2,316,818,030
Retained Earnings	8,177,051,340		13,356,720,656
Total Equity	11,355,437,727	16,396,887,107

Total Liabilities and Equity	74,885,489,644	61,258,227,617

NAPS (Rs.)	34.47		49.78

These financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

Sgd.

…................................

Mr. A M N Adhikari

Vice President - Finance

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Sgd.	Sgd.
…	…
Mr. W A T Fernando	Mr. C S R S Anthony
Director	Director
28th October 2024
Colombo

CAPITAL ALLIANCE PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30TH SEPTEMBER

Stated Capital	Special Risk	Retained	Total
	Reserve	Earnings
Rs.	Rs.	Rs.	Rs.

Balance as at 01st April 2023 (Audited) Profit for the Period

Other Comprehensive Income for the Period Total Comprehensive Income

Dividend Paid

Transferred To the Special Risk Reserve

Balance as at 30th September 2023 (Unaudited)

723,348,421

927,499,681

1,288,278,398

2,215,778,079

3,839,180,357

12,882,783,980

(1,001,430,367)

(1,288,278,398)

14,432,255,571

5,490,028,459

12,882,783,980

(1,001,430,367)

17,371,382,071

Balance as at 01st April 2024 (Audited) Profit for the Period

Other Comprehensive Income for the Period Total Comprehensive Income

Dividend Paid

Transferred To the Special Risk Reserve

Balance as at 30th September 2024 (Unaudited)

723,348,421

2,316,818,030

138,219,936

2,455,037,966

13,356,720,656

1,382,199,358

(6,423,648,738)

(138,219,936)

8,177,051,340

16,396,887,107

1,382,199,358

(6,423,648,738)

11,355,437,727

Figures in brackets indicate deductions.

CAPITAL ALLIANCE PLC

STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED	30-Sep-24		30-Sep-23
	Rs.		Rs.
	(Unaudited)		(Unaudited)
Cash flows from Operating Activities
Interest receipts and realised gains	4,283,162,893	21,632,544,015
Interest Payments	(2,315,477,661)	(3,111,622,310)
Payment of Direct Expenses	(17,177,068)	(13,580,615)
Other Receipts	31,063,442	406,860
Cash payments to Employees and Other payments	(325,381,154)		(488,895,853)
Operating profit before changes in Operating Assets and Liabilities	1,656,190,452	18,018,852,097
(Increase)/Decrease in Financial Assets measured at Amortised Cost	(2,503,784,686)	(136,073,060)
(Increase)/Decrease in Financial Assets measured at FVTPL	(11,124,611,962)	(29,521,744,724)
(Increase)/Decrease in Loan from Related Party	-	(1,023,143,835)
(Increase)/Decrease in Other Receivables	238,606,072	(112,610,470)
(Increase)/Decrease in Amount due from Related Companies	1,643,642	10,039,970
Increase/(Decrease) in Financial Liabilities at Amortised Cost	24,228,421,761	14,627,182,932
Increase/(Decrease) in Amount due to Related Companies	(54,657,517)	(86,126,143)
Increase/(Decrease) in Other Payable	(1,658,982,423)		623,743,565
Net cash generated from Operating Activities	10,782,825,339		2,400,120,332
Gratuity Paid	-	(745,000)
Income Taxes Paid	(4,656,373,789)		(1,275,119,775)
Net cash from generated Operating Activities	6,126,451,550	1,124,255,556
Cash flows from Investing Activities
Purchase of Equipment	(1,565,600)		(58,076,226)
Net cash used in Investing Activities	(1,565,600)	(58,076,226)
Cash flows from Financing Activities
Dividend Paid	(6,423,648,738)	(1,001,430,367)
Lease Payments	(2,567,652)		(2,334,229)
Net cash used in Financing Activities	(6,426,216,390)		(1,003,764,596)
Net increase/ (decrease) in cash and cash equivalents	(301,330,440)	62,414,734
Cash and cash equivalents at the beginning of the period	353,008,092		28,962,086
Cash and cash equivalents at the end of the period	51,677,652	91,376,820

Figures in brackets indicate deductions.

CAPITAL ALLIANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2024

1 BASIS OF PREPARATION

These interim financial statements have been prepared in accordance with LKAS 34 "Interim Financial Reporting". They do not include all the information required for a complete set of SLFRS/LKAS financial statements. However, selected explanatory notes are included to explain the events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual financial statements as at and for the year ended 31st March 2024.

The significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited financial statements for the year ended 31st March 2024.

QUARTER ENDED	SIX MONTHS ENDED
30-Sep-24	30-Sep-23	30-Sep-24	30-Sep-23
Rs.	Rs.	Rs.	Rs.

2 INTEREST INCOME

	Financial Assets measured at FVTPL
	Interest on Treasury Bills	359,971,869	338,800,543	555,538,465	755,062,169
	Interest on Treasury Bonds	1,636,410,221		2,393,682,208		3,365,518,589	4,587,840,462
		1,996,382,090	2,732,482,751	3,921,057,054	5,342,902,631
	Financial Assets measured at Amortised cost
	Interest on Securities Purchased Under Resale Agreements	108,604,769	23,848,102	159,014,187	49,128,915
	Interest on Staff Loans	-		18,201		16,608	36,921
		108,604,769	23,866,303	159,030,795	49,165,836

		2,104,986,859	2,756,349,054	4,080,087,849	5,392,068,467
3	INTEREST EXPENSES

	Interest on Securities Sold under Repurchase Agreements	1,337,804,742	1,637,549,262	2,436,370,862	3,346,597,679
	Interest Expense on Related Party Loan	-	7,556,164	-	49,187,671
	Interest Expense on Commercial Papers	-	33,488,708	-	39,081,140
	Interest Expense on Bank Loans	41,839,767		-		50,631,570	-
		1,379,644,509		1,678,594,134		2,487,002,432	3,434,866,490

4	GAINS AND (LOSSES) ARISE FROM FINANCIAL ASSETS
4.1	NET GAIN /(LOSS) FROM TRADING
	Net Gain/(Loss) on Government Securities	(578,897,187)	9,313,398,471	3,078,432,602	11,060,593,464
	Net Gain/ (Loss) on Quoted Shares	(57,951,032)		-		(69,646,132)	-
		(636,848,219)		9,313,398,471		3,008,786,470	11,060,593,464
4.2	NET GAIN/ (LOSS) FROM REMEASUREMENT OF FINANCIAL ASSETS AT FVTPL
	Remeasurement Gain/(Loss) on Government Securities	566,741,970	4,207,119,331	(2,321,179,050)	6,090,978,857
	Remeasurement Gain/(Loss) on Quoted Shares	(5,310,283)		(26,805,727)		62,996,983	(26,805,727)
		561,431,687		4,180,313,604		(2,258,182,067)	6,064,173,130

		(75,416,532)		13,493,712,075		750,604,403	17,124,766,594

		QUARTER ENDED		SIX MONTHS ENDED
5	INCOME TAX EXPENSE	30-Sep-24		30-Sep-23		30-Sep-24	30-Sep-23
	Income tax recognised in Profit or Loss	Rs.		Rs.		Rs.	Rs.
	Current Tax Expense for the period	178,126,126	4,342,197,582	637,640,529	5,672,871,570
	Deferred Tax Charge/ (Reversal) for the period	(352,239)		11,889,041		(979,025)	15,087,440
		177,773,887	4,354,086,623	636,661,504	5,687,959,010

6 BASIC EARNINGS PER SHARE

Earnings Per Share is calculated by dividing the Profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period and calculated as follows.

	QUARTER ENDED		SIX MONTHS ENDED
	30-Sep-24		30-Sep-23		30-Sep-24	30-Sep-23
Profit attributable to ordinary shareholders - (Rs.)	286,250,397	9,939,103,432	1,382,199,358	12,882,783,980
Weighted average number of ordinary shares	329,417,884		329,417,884		329,417,884	329,417,884
Earnings per share - (Rs.)	0.87	30.17	4.20	39.11

CAPITAL ALLIANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2024

7. Financial instruments- Fair Value Measurement

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements in accordance with SLFRS 13.

Level - 1

Financial instruments that are measured in whole or in part by reference to published quotes in an active market. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange and those prices represent actual and regularly occurring market transactions on an arm's length basis.

Level - 2

Financial instruments that are measured at fair value on a recurring basis. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined using relevant information generated by market transactions involving comparable securities.

Level - 3

Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

Fair values versus the Carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the Statement of Financial Position, are as follows:

	30-Sep-24		31-Mar-24
Financial assets measured at fair value
Financial Assets measured at FVTPL	71,204,635,894		59,533,287,818
	71,204,635,894	59,533,287,818
Financial assets not measured at fair value
Cash and Cash Equivalents	51,677,652	353,008,092
Financial Assets at Amortised Cost	3,520,479,269	1,015,901,338
Amounts due from Related Companies	10,122,567	11,766,209
Other receivables	1,809,635		252,178,079
	3,584,089,123	1,632,853,718

Total financial assets	74,788,725,017	61,166,141,536
Financial liabilities not measured at fair value

Financial Liabilities at Amortised Cost	61,746,342,760	37,346,396,228
Amounts due to Related Companies	7,189,216	61,846,733
Lease Liability	1,268,477	3,716,278
Other Payables	789,007,735		2,685,650,184
Total financial liabilities	62,543,808,188	40,097,609,423

CAPITAL ALLIANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2024

7. Financial instruments- Fair Value Measurement (Contd.)

The following tables show an analysis of financial instruments at fair value and by level of Fair Value Hierarchy:

As at 30th September 2024	Total Carrying		Level 1		Level 2	Carried at Cost	Total
Value
Financial Assets recognised through Fair Value Profit or Loss
Investment in Government Securities	70,720,183,257	70,720,183,257	-	-	70,720,183,257
Investment in Quoted Shares	484,452,637		484,452,637		-	-	484,452,637
	71,204,635,894		71,204,635,894		-	-	71,204,635,894

Financial assets not measured at Fair Value (Amortized Cost)

Cash and Cash Equivalents	51,677,652	-	-	51,677,652	51,677,652
Financial Assets at Amortised Cost	3,520,479,269	-	-	3,520,479,269	3,520,479,269
Receivable from Related Companies	10,122,567	-	-	10,122,567	10,122,567
Other receivables	1,809,635		-		-	1,809,635	1,809,635
	3,584,089,123	-	-	3,584,089,123	3,584,089,123

Total Financial Assets	74,788,725,017		71,204,635,894		-	3,584,089,123	74,788,725,017

Financial liabilities not measured at Fair Value (Amortized Cost)
Financial Liabilities at Amortised Cost	61,746,342,760	-	-	61,746,342,760	61,746,342,760
Amounts due to Related Companies	7,189,216	-	-	7,189,216	7,189,216
Other Payables	1,081,301,302	-	-	1,081,301,302	1,081,301,302
Lease Liability	1,268,477					1,268,477	1,268,477
	62,836,101,755		-		-	62,836,101,755	62,836,101,755

Total Financial Liabilities	62,836,101,755	-	-	62,836,101,755	62,836,101,755

As at 31st March 2024	Total Carrying		Level 1		Level 2	Carried at Cost	Total
Value
Financial Assets recognised fair value through Profit or Loss
Investment in Government Securities	58,627,406,456	58,627,406,456	-	-	58,627,406,456
Investment in Quoted Shares	905,881,362		905,881,362				905,881,362
	59,533,287,818		59,533,287,818		-	-	59,533,287,818

Financial assets not measured at Fair Value (Amortized Cost)

Cash and Cash Equivalents	353,008,092	-	-	353,008,092	353,008,092
Financial Assets at Amortised Cost	1,015,901,338	-	-	1,015,901,338	1,015,901,338
Amount due from Related Companies	11,766,209	-	-	11,766,209	11,766,209
Other receivables	252,178,079		-		-	252,178,079	252,178,079
	1,632,853,718		-		-	1,632,853,718	1,632,853,718

Total Financial Assets	61,166,141,536		59,533,287,818		-	1,632,853,718	61,166,141,536

Financial liabilities not measured at Fair Value (Amortized Cost)
Financial Liabilities at Amortised Cost	37,346,396,228	-	-	37,346,396,228	37,346,396,228
Amounts due to Related Companies	61,846,733	-	-	61,846,733	61,846,733
Other Payables	2,685,650,184	-	-	2,685,650,184	2,685,650,184
Lease Liability	3,716,278		-			3,716,278	3,716,278
Total Financial Liabilities	40,097,609,423	-	-	40,097,609,423	40,097,609,423

Level 1

The Company use quoted market prices of Colombo Stock Exchange (CSE) for measuring of fairvalue of Shares.

Level 2

The Company use the daily average government security rates issued by Public Debt Department of Central Bank of Sri Lanka for measuring Fair Value of Government Securities.

CAPITAL ALLIANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2024

8. COMMITMENTS AND CONTINGENCIES

There were no other material litigations or claims that could have a material impact on financial position of the Company or which would lead to a disclosure in the financial statements for the quarter ended 30th September 2024.

9. EVENTS AFTER THE REPORTING PERIOD

There have been no other material events occurring after the date of the Statement of Financial Position that require adjustments to or disclosure in the Financial Statements.

10. NET ASSETS PER SHARE

30-Sep-2431-Mar-24

Net Assets Per Share (Rs.)	34.47	49.78

11. DISCLOSURES UNDER LISTING RULES

All known expenditure items have been provided for and there is no management fees or similar expenditure provided for in the interim accounts.
Stated capital

The number of shares represented by stated capital as at 30th September 2024 is 329,417,884 shares (31st March 2024 - 329,417,884 shares).

CAPITAL ALLIANCE PLC

INVESTOR INFORMATION

11.3 Market Price per Share
Information on shares of the Company for the quarter ended	30-Sep-24	31-Mar-24
Market Price Per Share (Rs.)		44.10	53.00
Highest Price per share during the quarter ended (Rs.)	47.30	55.50
Lowest Price per share during the quarter ended (Rs.)	39.80	27.00
11.4 List of Twenty Major Shareholders as at 30th September 2024

	Name of Shareholder/Company	Shareholding	Percentage
1	Capital Alliance Holdings Ltd		283,297,152	86.00%
2	Seylan Bank PLC/H.M.S.Perera		4,318,604	1.31%
3	Ashthi Holdings (Private) Limited	1,000,012	0.30%
4	Mr. P.A. Schaffter		867,980	0.26%
5	Dr. A.M.A.D.S. Abeysinghe		716,120	0.22%
6	Deutsche Bank AG-National Equity Fund	632,981	0.19%
7	Mr. D.N.P. Rathnayake		610,000	0.19%
8	Mr. W.D.N.H. Perera		525,000	0.16%
9	MAC Holdings (Pvt) Ltd		500,000	0.15%
10	Mr. D.G. Wirasekara		500,000	0.15%
11	Mr. T.D. Gunasekera		450,500	0.14%
12	Mr. K.L.D.N.N.M. Liyanage		445,780	0.14%
13	Mr. J.M Wanigasekara		400,000	0.12%
14	Mrs. H.K.S. Priyadarshani		355,075	0.11%
15	Mr. L.H.S.L. Silva		339,650	0.10%
16	Ms. H.A. Wijerama		333,660	0.10%
17	Mrs R.S. Mortier		313,600	0.10%
18	Mr. M.F. Shabdeen		288,755	0.09%
19	Mr. H.G.D.R.D.K. Jayawardana		264,221	0.08%
20	Celao Capital (Pvt) Ltd		250,000	0.08%
			296,409,090	89.99%
11.5 Shareholding of the Directors/ Chief Executive Officer
	Name	Designation	Shareholding
	Mr. W A T Fernando	Director/ CEO	Nil
	Mr. D A De Zoysa	Chairman	Nil
	Mr. R J Arasaratnam	Director	3,312
	Mr. C S R S Anthony	Director	2,600
	Ms. A I C Nandasena	Director	Nil
	Ms. K A D Siriwardene	Director	Nil
11.6 Compliance relating to the Public Floating
Disclosure in accordance with the Section 7.13.1 (b) of CSE Listing Rules
Float adjusted market capitalisation as at 30th September 2024 (Rs)	1,766,377,895
Public holding percentage		12.16%
Number of public shareholders		5,370

The Company had complied with the Minimum Public Holding requirement under Option 2 of CSE Listing Rule 7.13.1 (b)

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