INSPIRE
COMMERCIAL CREDIT AND FINANCE PLC
A N N U A L R E P O R T 2 0 2 3 / 2 0 2 4
INSPIRE
While the past year brought immense hardship to Sri Lanka's economy, the year 2023 has shown signs of resilience. We, as a company, are proud to have weathered these storms alongside our nation, and
our core principles continue to guide us.
As a purpose-driven organization, we remain dedicated to fostering a win-win mentality within our team. We cultivate a culture of continuous learning and development, emphasizing love, care, integrity and trust. This approach fosters strong internal synergy and teamwork, allowing us to navigate challenges and contribute to Sri Lanka's economic recovery.
Our steadfast commitment to our purpose has solidified our partnerships with
stakeholders. Together, we are building a stronger future for Sri Lanka.
VISION To be the most liberated Company admired for its people, partnership and performance
https://www.cclk.lk/ about-us/overview/en
PURPOSE
To build leaders who uplift the lives of people by simple acts of love.
MISSION
To be a dynamic Finance Company which develops and nurtures leaders at every level of the organization to serve society with passion.
CONTENT
ABOUT US
Shared Values | 04 |
Financial & Non-Financial Highlights | 06 |
OUR LEADERS
Chairman's Statement | 10 |
CEO's Review | 12 |
Board of Directors | 15 |
Executive Management Team | 19 |
ABOUT THE COMPANY
About The Company | 22 |
Branch Network | 23 |
Awards | 24 |
MANAGEMENT
DISCUSSION & ANALYSIS
Economic Review | 28 |
Company Financial Review | 32 |
Sustainability Report | 34 |
Stakeholder Engagement | 38 |
Risk Management | 40 |
CORPORATE GOVERNANCE
Corporate Governance | 48 |
Annual Report of the Board of Directors on the | 95 |
Affairs of the Company | |
Report of the Board Audit Committee | 97 |
Report of the Board Human Resource & | 99 |
Remuneration Committee | |
Report of the Board Nomination Committee | 100 |
Report of the Related Party Transaction Review | 101 |
Committee | |
Report of the Board Integrated Risk Management | 102 |
Committee | |
CEO's & CFO's Responsibility Statement | 103 |
Statement by the Senior Independent Director | 104 |
Statement of Directors responsibility for financial | 105 |
reporting | |
Directors Statement on Internal Control over | 106 |
financial reporting | |
Independent Assurance Report | 108 |
FINANCIAL INFORMATION
Independent Audit Report | 111 | |||||
Statement of Financial Position | 114 | |||||
Statement of Profit or Loss | 115 | |||||
Statement of Comprehensive Income | 116 | |||||
Statement of Changes in Equity | 117 | |||||
Statement of Cash Flows | 119 | |||||
Accounting Policies | 121 | |||||
Notes to the Financial Statements | 135 | |||||
SUPPLEMENTARY | ||||||
INFORMATION | ||||||
Ten Year Summary | 199 | |||||
Investor Information | 200 | |||||
Glossary | 204 | |||||
Notice Of Meeting | 207 | |||||
Form Of Proxy | 208 | |||||
Notes | 209 | |||||
Investor Feedback Form | 209 | |||||
Corporate Information | 212 | |||||
https://www.cclk.lk/ | ||||||
Scan the QR Code with your smart device to | about-us/investor- | |||||
relations/en | ||||||
view this report online. | ||||||
4 | Commercial Credit and Finance PLC | Annual Report 2023/2024 | |
SHARED
VALUES
Loving and Caring
Love is defined by CCFP as the commitments made or the extra miles travelled to uplift others' lives. Those who seek to love, love themselves, love others and also love life. Everyone is energized and feels safe by love, and the advantages of unconditional love and respect are invaluable. Love is the act, the Principle which will run through all five shared values, which we come into contact with in Commercial Credit. We believe we are not held back by the love we did not receive in the past, but by the love, we are not extending in the present.
Learning and Development
At CCFP, learning and development is defined as the process of renewing and enhancing the Physical, Spiritual, Mental and Emotional components of our lives in order to support personal and interpersonal development. The most successful investment anybody can make is focusing on their own learning and development, which is a constant process that leads to effective, efficient, and long-lasting results. CCFP encourages a culture that places a high value on learning and development and works hard to encourage its employees to continuously renew in the above four quadrants.
Integrity and Trust
We believe that trust is the key to every relationship. It determines how relationships begin and grow. Integrity means that our lives are integrated around principles and that our security comes from within, not from outside. Being a person of integrity is of utmost importance to all team members at Commercial Credit. A trustworthy individual has the gift of lifting others and making them do good deeds, sometimes even impossible ones. Therefore, we place great emphasis on creating a culture of integrity where an individual does the right thing even when no one is watching.
Commercial Credit and Finance PLC | Annual Report 2023/2024 | 5 | |
Think Win-Win
Win-Win is one paradigm of human interaction and it arises from a character of integrity, maturity and the abundance mentality. Human interactions in life are cooperative and are based on mutual respect and mutual benefit. A culture of Think Win-Win is also demonstrated by agreements that effectively manage and explain expectations. The processes and supporting systems of CCFP are constantly being adjusted to promote this win-win mentality. Our main goal is to constantly establish win-win situations, where everyone involved is satisfied with the outcome and no one feels undervalued. It is an attitude that has been readily embraced by our team members and one that has created countless satisfied customers.
Synergy and Teamwork
CCFP believes that synergy creates better alternatives by valuing the mental, emotional, and psychological differences among individuals. Acknowledging that diversity, not similarity, is where power rests. CCFP team members always try to combine individual strengths with a shared commitment to perform towards common goals aligning to the Company purpose.
6 | Commercial Credit and Finance PLC | Annual Report 2023/2024 | |
FINANCIAL
HIGHLIGHTS
2023/24 | 2022/23 | % | |||
Rs.'000' | Rs.'000' | Change | |||
Financial Performance | |||||
Gross Income | 31,055,222 | 28,949,269 | 7.3% | ||
Net Interest Income | 12,808,022 | 11,106,651 | 15.3% | ||
Profit Before Taxation | 6,594,978 | 3,859,879 | 70.9% | ||
Profit After Taxation | 4,193,917 | 2,599,629 | 61.3% | ||
Financial Position | |||||
Leases, Hire Purchases, Loans and Advances | 81,437,828 | 76,170,663 | 6.9% | ||
Total Assets | 107,987,834 | 102,154,440 | 5.7% | ||
Total Deposit Base | 62,121,240 | 59,243,651 | 4.9% | ||
Borrowings | 13,902,823 | 17,555,544 | -20.8% | ||
Shareholders' Funds | 24,179,669 | 20,359,015 | 18.8% | ||
Liquid Assets | 11,483,294 | 12,836,935 | -10.5% | ||
Key Indicators per Ordinary Share | |||||
Earnings per Share( Rs.) | 13.19 | 8.17 | |||
Net Assets per Share ( Rs.) | 76.02 | 64.01 | |||
Year end Market Price per Share (Rs.) | 35.30 | 26.00 | |||
Key Performance Indicators | |||||
Return on Average Assets (%) | 3.99 | 2.66 | |||
Equity / Assets (%) | 22.39 | 19.93 | |||
Gross Non Performing Accommodations (%) | 10.65 | 11.07 | |||
Net Non Performing Accommodations (%) | 1.47 | 1.17 | |||
Return on Average Shareholders' Funds (%) | 18.83 | 13.15 | |||
Statutory Ratios | |||||
Capital Funds to Deposits (%) | 38.92 | 34.36 | |||
Core Capital (Tier 1 Capital) (Rs. '000) | 21,046,964 | 17,694,262 | |||
Core Capital (Tier 11 Capital) (Rs. '000) | 21,143,415 | 18,874,733 | |||
Core Capital Ratio (%) | 19.35 | 17.49 | |||
Total Risk Weighted Capital Ratio (%) | 19.43 | 18.66 | |||
Memorandum information | |||||
Number of Employees | 2,999 | 2,816 | |||
Number of Branches | 133 | 133 | |||
External Credit Rating (LRA) | BBB (Positive) | BBB (Stable) | |||
Commercial Credit and Finance PLC | Annual Report 2023/2024 | 7 | |
Rs. Bn | Rs. Bn | % | |||||||||||||||
TOTAL ASSETS | PROFIT AFTER TAX | GROSS NON PERFORMING ACCOMODATION | |||||||||||||||
120 | 5.0 | 12 | |||||||||||||||
100 | 4.5 | 10 | |||||||||||||||
4.0 | |||||||||||||||||
80 | 3.5 | 8 | |||||||||||||||
3.0 | |||||||||||||||||
60 | 2.5 | 6 | |||||||||||||||
40 | 2.0 | 4 | |||||||||||||||
1.5 | |||||||||||||||||
20 | 1.0 | 2 | |||||||||||||||
0.5 | |||||||||||||||||
0 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 0.0 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 0 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 |
Rs. Bn | Rs. Bn | Rs. Bn | |||||||||||||||
TOTAL EQUITY | NET INTEREST INCOME | TOTAL DEPOSITS | |||||||||||||||
30 | 16 | 70 | |||||||||||||||
25 | 14 | 60 | |||||||||||||||
12 | 50 | ||||||||||||||||
20 | |||||||||||||||||
10 | |||||||||||||||||
40 | |||||||||||||||||
15 | 8 | ||||||||||||||||
30 | |||||||||||||||||
6 | |||||||||||||||||
10 | |||||||||||||||||
20 | |||||||||||||||||
4 | |||||||||||||||||
5 | 2 | 10 | |||||||||||||||
0 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 0 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 0 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 |
% | Rs. Bn |
SECURED AND UNSECURED PORTFOLIO | NET LENDING PORTFOLIO | |
COMPOSITION | 70 | |
5.1% | ||
60 | ||
50 | ||
40 | ||
2023/24 | 30 | |
20 | ||
10 | ||
94.9% | 0 | 2019/20 2020/21 2021/22 2022/23 2023/24 |
Secured | Unsecured | Loans and Advances | Leasing and Hire Purchase | |||||||
"You don't need to be perfect to inspire others.
Let people get inspired by how you deal with your imperfections ."
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