Capital Alliance PlcCSELK: CALT.N0000

Interim Financial Statements for the period ended 31st December 2024

Jan 21, 2025 at 2:36 AM UTC · Issued by Capital Alliance Plc

CAPITAL ALLIANCE PLC

INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST DECEMBER 2024

CAPITAL ALLIANCE PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE		QUARTER ENDED		NINE MONTHS ENDED
		31-Dec-24		31-Dec-23		31-Dec-24	31-Dec-23
	Note	Rs.		Rs.		Rs.	Rs.
		(Unaudited)		(Unaudited)		(Unaudited)	(Unaudited)
Interest Income	2	2,421,254,351	2,730,337,153	6,501,342,199	8,122,405,621
Interest Expenses	3	(1,688,976,573)		(1,808,328,382)		(4,175,979,005)	(5,243,194,872)
Net Interest Income		732,277,778	922,008,771	2,325,363,194	2,879,210,748
Gains arise from Financial Assets Measured at
FVTPL	4	3,218,802,065	302,770,995	3,969,406,467	17,427,537,588
Direct Expenses		(11,552,215)	(7,391,265)	(28,729,282)	(20,971,880)
Other Income		930,456	8,464,558	31,998,084	8,871,418

Net Operating Income		3,940,458,084	1,225,853,059	6,298,038,463	20,294,647,874
Operating Expenses
Personnel Expenses		(267,428,695)	(862,174,279)	(367,555,388)	(929,156,526)
Depreciation and Amortisation		(4,979,101)	(4,586,528)	(14,607,553)	(10,824,610)
Other Expenses		(262,865,686)	(189,946,177)	(491,830,059)	(614,777,674)

Profit Before Tax		3,405,184,602	169,146,075	5,424,045,463	18,739,889,064
Income Tax Expenses	5	(994,775,021)	(112,456,904)	(1,631,436,524)	(5,800,415,913)

Profit for the period		2,410,409,581	56,689,171	3,792,608,939	12,939,473,151
Other Comprehensive Income

Other Comprehensive Income for the period		-		-		-	-

Total Comprehensive Income for the period		2,410,409,581		56,689,171		3,792,608,939	12,939,473,151

Basic/ Diluted Earnings per Share (Rs.)	6	7.32	0.17	11.51	39.28

CAPITAL ALLIANCE PLC

STATEMENT OF FINANCIAL POSITION
AS AT	31-Dec-24		31-Mar-24
	Rs.		Rs.
	(Unaudited)		(Audited)
ASSETS
Cash and Cash Equivalents	37,670,760	353,008,092
Financial Assets measured at Amortised Cost	4,936,802,938	1,015,901,338
Financial Assets measured at FVTPL	98,900,692,455	59,533,287,818
Amount due from Related Companies	14,331,458	11,766,209
Other Receivables	19,167,899	260,547,704
Deferred Tax Asset	25,689,481	24,583,978
Intangible Assets	6,037,190	4,506,832
Right-of-use Asset	-	3,055,983
Equipment	43,690,335		51,569,663
Total Assets	103,984,082,516	61,258,227,617
LIABILITIES AND EQUITY

Liabilities
Bank Overdrafts	418,396,810	-
Financial Liabilities at Amortised Cost	86,980,409,119	37,346,396,228
Amounts due to Related Companies	11,071,452	61,846,733
Other Payables	1,146,206,462	2,740,283,723
Lease Liability	-	3,716,278
Retirement Benefit Obligation	86,708,125	81,309,710
Income Tax Payable	1,575,443,240		4,627,787,838
Total Liabilities	90,218,235,208	44,861,340,510
EQUITY
Stated Capital	723,348,421	723,348,421
Special Risk Reserve	2,696,078,924	2,316,818,030
Retained Earnings	10,346,419,963		13,356,720,656
Total Equity	13,765,847,308	16,396,887,107

Total Liabilities and Equity	103,984,082,516	61,258,227,617

NAPS (Rs.)	41.79		49.78

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

Signed

…....................................

Ms. S C Goonesekara

Manager - Finance

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

Signed	Signed
…	…
Ms. A I C Nandasena	Mr. C S R S Anthony
Director	Director
20th January 2025
Colombo

CAPITAL ALLIANCE PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31ST DECEMBER 2024

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

Balance as at 01st April 2023

Profit for the Period

Other Comprehensive Income for the Period Total Comprehensive Income

Dividend Paid

Transferred To the Special Risk Reserve

Balance as at 31st December 2023

723,348,421

927,499,681

1,293,947,315

2,221,446,996

3,839,180,357

12,939,473,151

(1,001,430,367)

(1,293,947,315)

14,483,275,826

5,490,028,459

12,939,473,151

(1,001,430,367)

17,428,071,243

Balance as at 01st April 2024

Profit for the Period

Other Comprehensive Income for the Period Total Comprehensive Income

Dividend Paid

Transferred To the Special Risk Reserve

Balance as at 31st December 2024

723,348,421

2,316,818,030

379,260,894

2,696,078,924

13,356,720,656

3,792,608,939

(6,423,648,738)

(379,260,894)

10,346,419,963

16,396,887,107

3,792,608,939

(6,423,648,738)

13,765,847,308

CAPITAL ALLIANCE PLC

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED	31-Dec-24		31-Dec-23
	Rs.		Rs.
	(Unaudited)		(Unaudited)
Cash flows from Operating Activities
Interest receipts and realised gains	9,866,678,510	23,518,759,146
Interest Payments	(3,963,138,269)	(4,789,965,524)
Payment of Direct Expenses	(28,729,282)	(20,971,880)
Other Receipts	31,998,084	8,871,418
Cash payments to Employees and Other payments	(614,612,783)		(681,378,414)
Operating Profit before changes in Operating Assets and Liabilities	5,292,196,260	18,035,314,747
(Increase)/Decrease in Financial Assets measured at Amortised Cost	(3,916,038,934)	156,393,142
(Increase)/Decrease in Financial Assets measured at FVTPL	(38,768,197,147)	(34,166,487,181)
(Increase)/Decrease in Loan from Related Party	-	(1,023,143,836)
(Increase)/Decrease in Other Receivables	241,379,805	(6,751,160)
(Increase)/Decrease in Amount due from Related Companies	(2,565,249)	3,171,041
Increase/(Decrease) in Financial Liabilities at Amortised Cost	49,421,172,155	20,446,165,049
Increase/(Decrease) in Amount due to Related Companies	(50,775,281)	(81,552,686)
Increase/(Decrease) in Other Payable	(1,833,316,310)		(397,969,255)
Net cash generated from Operating Activities	10,383,855,299		2,965,139,860
Gratuity Paid	-	(745,000)
Income Taxes Paid	(4,684,886,625)		(1,808,060,462)
Net cash generated from Operating Activities	5,698,968,674	1,156,334,398
Cash flows from Investing Activities
Purchase of Equipment	(2,509,950)	(58,811,226)
Purchase of Intangible Assets	(2,692,651)		(3,525,000)
Net cash used in Investing Activities	(5,202,601)	(62,336,226)
Cash flows from Financing Activities
Dividend Paid	(6,423,648,738)	(1,001,430,367)
Lease Payments	(3,851,478)		(3,501,345)
Net cash used in Financing Activities	(6,427,500,216)		(1,004,931,712)
Net increase/ (decrease) in cash and cash equivalents	(733,734,142)	89,066,460
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	(380,726,050)		118,028,546

CAPITAL ALLIANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST DECEMBER 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		NINE MONTHS ENDED
		31-Dec-24		31-Dec-23		31-Dec-24	31-Dec-23
		Rs.		Rs.		Rs.	Rs.
2	INTEREST INCOME
	Financial Assets measured at FVTPL
	Interest on Treasury Bills	268,320,636	258,423,750	823,859,101	1,013,485,920
	Interest on Treasury Bonds	2,036,456,753	2,450,103,536	5,401,975,342	7,037,943,998

		2,304,777,389	2,708,527,286	6,225,834,443	8,051,429,918
	Financial Assets measured at Amortised cost
	Interest on Securities Purchased Under Resale Agreements	116,476,962	21,792,190	275,491,148	70,921,105
	Interest on Staff Loans	-		17,677		16,608	54,598
		116,476,962	21,809,867	275,507,756	70,975,703

		2,421,254,351	2,730,337,153	6,501,342,199	8,122,405,621
3	INTEREST EXPENSES

	Interest on Securities Sold under Repurchase Agreements	1,602,964,272	1,795,193,660	4,039,335,134	5,141,791,339
	Interest Expense on Related party Loan	-	-	-	49,187,671
	Interest Expense on Commercial Papers	42,808,219	13,134,722	42,808,219	52,215,862
	Interest Expense on Bank Loans	43,204,082		-		93,835,652	-
		1,688,976,573		1,808,328,382		4,175,979,005	5,243,194,872

4	GAINS AND LOSSES ARISE FROM FINANCIAL ASSETS MEASURED AT FVTPL
4.1	NET GAIN /(LOSS) FROM TRADING
	Net Gain/(Loss) on Government Securities	1,618,221,296	3,705,197,316	4,696,653,899	14,765,790,780
	Net Gain/ (Loss) on Quoted Shares	52,516,362		(5,408,491)		(17,129,771)	(5,408,491)
		1,670,737,658		3,699,788,825		4,679,524,128	14,760,382,289
4.2	NET GAIN/(LOSS) FROM REMEASUREMENT OF FINANCIAL ASSETS AT FVTPL
	Remeasurement Gain/(Loss) on Government Securities	1,334,508,699	(3,318,179,188)	(986,670,351)	2,772,799,668
	Remeasurement Gain/(Loss) on Quoted Shares	213,555,708		(78,838,642)		276,552,690	(105,644,369)
		1,548,064,407		(3,397,017,830)		(710,117,661)	2,667,155,299

		3,218,802,065		302,770,995		3,969,406,467	17,427,537,588

		QUARTER ENDED		NINE MONTHS ENDED
5	INCOME TAX EXPENSE	31-Dec-24		31-Dec-23		31-Dec-24	31-Dec-23
	Income tax recognised in Profit or Loss	Rs.		Rs.		Rs.	Rs.
	Current Tax Expense for the period	994,901,498	113,694,687	1,632,542,027	5,786,566,256
	Deferred Tax Charge/ (Reversal) for the period	(126,477)		(1,237,783)		(1,105,503)	13,849,657
		994,775,021	112,456,904	1,631,436,524	5,800,415,913

6 BASIC/DILUTED 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		NINE MONTHS ENDED
	31-Dec-24		31-Dec-23		31-Dec-24	31-Dec-23
Profit attributable to ordinary shareholders - (Rs.)	2,410,409,581	56,689,171	3,792,608,939	12,939,473,151
Weighted average number of ordinary shares	329,417,884		329,417,884		329,417,884	329,417,884
Earnings per share - (Rs.)	7.32	0.17	11.51	39.28

CAPITAL ALLIANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST DECEMBER 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:

	31-Dec-24		31-Mar-24
Financial assets Measured at Fair Value
Investment in Government Securities	97,878,420,984	59,533,287,818
Investment in Quoted Shares	1,022,271,471		-
	98,900,692,455	59,533,287,818
Financial assets not measured at fair value

Cash and Cash Equivalents	37,670,760	353,008,092
Financial Assets at Amortised Cost	4,936,802,938	1,015,901,338
Amounts due from Related Companies	14,331,458	11,766,209
Other receivables	5,766,745		252,178,079
	4,994,571,901	1,632,853,718
Total Financial Assets
103,895,264,356		61,166,141,536
Financial Liabilities not measured at Fair Value

Financial Liabilities at Amortised Cost	86,980,409,119	37,346,396,228
Amounts due to Related Companies	11,071,452	61,846,733
Lease Liability	-	3,716,278
Other Payables	1,104,827,002		2,685,650,184
Total Financial Liabilities	88,096,307,573	40,097,609,423

CAPITAL ALLIANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST DECEMBER 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 31st December 2024	Total Carrying		Level 1		Level 2		Level 3	Total Fair Value
Value
Financial Assets recognised through Profit or Loss
Investment in Government Securities	97,878,420,984	97,878,420,984	-	-	97,878,420,984
Investment in Quoted Shares	1,022,271,471		1,022,271,471		-		-	1,022,271,471
	98,900,692,455		98,900,692,455		-		-	98,900,692,455
Financial assets not measured at Fair Value
Cash and Cash Equivalents	37,670,760	-	-	37,670,760	37,670,760
Financial Assets at Amortised Cost	4,936,802,938	-	-	4,936,802,938	4,936,802,938
Receivable from Related Companies	14,331,458	-	-	14,331,458	14,331,458
Other Receivables	5,766,745		-		-		5,766,745	5,766,745
	4,994,571,901		-		-		4,994,571,901	4,994,571,901

Total Financial Assets	103,895,264,356		98,900,692,455		-		4,994,571,901	103,895,264,356

Financial liabilities not measured at Fair Value
Financial Liabilities at Amortised Cost	86,980,409,119	-	-	86,980,409,119	86,980,409,119
Amounts due to Related Companies	11,071,452	-	-	11,071,452	11,071,452
Other Payables	1,104,827,002	-	-	1,104,827,002	1,104,827,002
Lease Liability	-		-		-		-	-
Total Financial Liabilities	88,096,307,573	-	-	88,096,307,573	88,096,307,573

As at 31st March 2024	Total Carrying Value		Level 1		Level 2		Level 3	Total Fair Value

Financial Assets recognised 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
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
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 fair value 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 31ST DECEMBER 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 31st December 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

31-Dec-24 31-Mar-24

Net Assets Per Share (Rs.)	41.79	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 31st December 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	31-Dec-24	31-Mar-24
Market Price Per Share (Rs.)	53.10	53.00
Highest Price per share during the quarter ended (Rs.)	53.80	55.50
Lowest Price per share during the quarter ended (Rs.)	43.00	27.00

11.4 List of Twenty Major Shareholders as at 31st December 2024

	Name of Shareholder/ Company	Shareholding
1	Capital Alliance Holdings Ltd	283,297,152
2	Seylan Bank PLC/ H.M.S.Perera	4,318,604
3	Deutsche Bank AG Trustee To Lynear Wealth Dynamic Opportunities Fund	2,106,100
4	Mr. P.A. Schaffter	1,368,246
5	Seylan Bank PLC /Phantom Investments (Pvt) Ltd	1,058,877
6	Mr. K.R.E.M.D.M.B. Jayasundara	1,058,754
7	Ashthi Holdings (Private) Limited	1,000,012
8	Dr. A.M.A.D.S. Abeysinghe	716,120
9	Mr. D.N.P. Rathnayake	610,000
10	MAC Holdings (Pvt) Ltd	500,000
11	Mr. D.G. Wirasekara	500,000
12	People's Leasing & Finance PLC /Mr.D.M.P.Disanayake	389,809
13	Rubber Investment Trust Ltd A/C 01	353,434
14	Aitken Spence PLC A/C 03 (Aitken Spence & Associated Companies Executive Staff Provident Fund)	350,000
15	Citizens Development Business Finance PLC /S.Vasudevan	340,241
16	Mr. T.D. Gunasekera	340,000
17	Mr. L.H.S.L. Silva	339,650
18	Ms. H.A. Wijerama	333,660
19	Mrs R.S. Mortier	313,600
20	Mr. G. Wickremasinghe	300,000

11.5 Shareholding of the Directors/ Chief Executive Officer
	Name	Shareholding
	Mr. W A T Fernando	Nil
	Mr. D A De Zoysa	Nil
	Mr. R J Arasaratnam	3,312
	Mr. C S R S Anthony	2,600
	Ms. A I C Nandasena	Nil
	Ms. K A D Siriwardene	Nil
	Mr. J M Jayasuriya	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 31st December 2024 (Rs)	2,127,213,021
Public holding percentage	12.16%
Number of public shareholders	4,808

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

Percentage

86.00%

1.31%

0.64%

0.42%

0.32%

0.30%

0.22%

0.19%

0.15%

0.12%

0.11%

0.10%

0.09%

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