Lolc Finance PlcCSELK: LOFC.N0000

Interim Financial Statements as of 31/03/2025

· Issued by LOLC Finance PLC
INTERIM FINANCIAL STATEMENTS For the year ended 31st March 2025

LOLC FINANCE PLC



CONTENTS

As at 31st March 2025

Page

  1. Statement of Financial Position 1

  2. Statement of Profit or Loss and Other Comprehensive Income 2

  3. Statement of Changes in Equity 3

  4. Statement of Cash flows 4

  5. Operating Segments 5

  6. Notes to the Interim Financial Statements 6

  7. Statement of Directors' and Chief Executive Officer's holding in Shares of the Entity 10

  8. Top 20 Shareholders 11

STATEMENT OF FINANCIAL POSITION

As at 31st March 2025

As at 31.03.2025

(Unaudited) Rs. '000

As at 31.03.2024

(Audited) Rs. '000

ASSETS

Cash and cash equivalents

9,007,891

11,486,914

Placements with banks

2,794,251

4,060,475

Securities purchased under resale agreements

280,245

2,318,268

Derivative financial instruments

6,499

-

Financial assets recognised through profit or loss - measured at fair value

33,324,964

32,215,529

Financial assets at amortised cost - loans and advances to customers

297,402,131

249,641,762

Financial assets at amortised cost - debt and other financial instruments

14,829,142

12,992,020

Financial assets measured at fair value through other comprehensive income

322,744

277,350

Investment in associate

-

249,943

Property, plant and equipment

13,983,155

11,062,854

Intangible assets

60,108

39,583

Right-of-use assets

1,481,201

1,260,181

Investment properties

55,029,900

48,313,343

Other assets

1,456,408

3,554,007

Total assets

429,978,639

377,472,229

LIABILITIES

Bank overdraft

8,881,078

5,017,647

Derivative financial instruments

1,938

-

Financial liabilities at amortised cost - due to depositors

225,717,329

206,368,226

Financial liabilities at amortised cost - borrowings

15,680,980

19,711,407

Retirement benefit obligation

752,326

710,961

Current tax liabilities

2,011,921

2,681,710

Deferred tax liabilities

2,992,431

2,999,055

Other liabilities

24,446,816

17,637,751

Total liabilities

280,484,819

255,126,758

EQUITY

Stated capital

44,078,916

306,993,806

Reserves

Statutory reserve

7,543,897

6,291,146

Merger reserve

-

(262,914,890)

Other reserves

9,045,618

8,406,526

Retained earnings

88,825,389

63,568,884

Total equity

149,493,820

122,345,471

Total liabilities and equity

429,978,639

377,472,229

Net asset value per share (Rs.)

4.52

3.70

Certification :

These financial statements have been prepared in compliance with the requirements of the Companies Act No. 7 of 2007.

Sgd.

……………………………..

(Mr.) Buddhika Weeratunga Head of Finance

The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed for and on behalf of the Board,

Sgd. Sgd.

…………………………….. ………………………………...

(Mr.) Krishan Thilakaratne (Mr.) Conrad Dias

Director / CEO Chairman / Non Executive Director

22nd May 2025

Rajagiriya (Greater Colombo)

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31st March 2025

For the year ended For the quarter ended

31.03.2025

(Unaudited) Rs. '000

31.03.2024 Variance (Audited)

Rs. '000 %

31.03.2025

(Unaudited) Rs. '000

31.03.2024 Variance (Audited)

Rs. '000 %

Gross income

73,294,411

88,706,698

(17)

20,766,618

22,570,194

(8)

Interest income

68,317,633

74,993,923

(9)

17,352,003

18,088,454

(4)

Interest expense

(26,211,478)

(37,019,230)

(29)

(6,199,449)

(8,011,343)

(23)

Net interest income

42,106,156

37,974,693

11

11,152,554

10,077,111

11

Fee and commission income

2,587,164

2,269,910

14

701,136

689,783

2

Net gains / (losses) from trading

2,011,228

3,349,401

(40)

470,315

209,923

124

Net other operating income

Sundry and other operating income

4,088,866

8,093,464

(49)

2,243,163

3,582,034

(37)

Derecognition loss on restructuring of SLISBs

(3,710,480)

-

-

-

-

-

Other operating income

4,976,777

13,712,775

(64)

3,414,615

4,481,740

(24)

Total operating income

47,082,933

51,687,468

(9)

14,567,168

14,558,851

-

Less: Impairment (charges) / reversal Loans and advances

(169,174)

(1,625,715)

(90)

2,588,260

1,674,546

55

Sri Lanka International Sovereign Bonds

7,311,701

(2,767,993)

(364)

(81,227)

(2,767,993)

(97)

Other financial assets and credit related commitments

540,502

(263,002)

(306)

58,048

(263,002)

(122)

Total impairment (charge) / reversal

7,683,028

(4,656,710)

(265)

2,565,080

(1,356,449)

(289)

Net operating income

54,765,962

47,030,758 16

17,132,248

13,202,402

30

Less: Expenses

Personnel expenses

(7,940,799)

(6,886,450)

15

(2,434,241)

(2,246,195)

8

Depreciation and amortisation

(1,304,748)

(1,186,106)

10

(332,604)

(370,711)

(10)

Other operating expenses

(14,730,035)

(13,978,830)

5

(4,151,731)

(3,945,324)

5

Total operating expenses

(23,975,582)

(22,051,386)

9

(6,918,576)

(6,562,230)

5

Profit from operating activities

30,790,379

24,979,372

23

10,213,673

6,640,171

54

Share of profit of equity accounted investee

22,834

33,934

(33)

13,384

6,348

111

Profit before income tax expense

30,813,213

25,013,305 23

10,227,057

6,646,519

54

Taxes on financial services

(5,758,201)

(3,465,810)

66

(1,794,363)

(807,131)

122

Profit for the period

25,055,012

21,547,495

16

8,432,693

5,839,388

44

Other comprehensive income

Items that will never be reclassified to profit or loss

Gains / (losses) on remeasurement of defined benefit liability

53,276

27,396

94

9,325

27,396

(66)

Deferred tax (charge) / reversal on actuarial gains / (losses)

(15,983)

(8,219)

94

(2,797)

(8,219)

(66)

Net actuarial gains / (losses) on defined benefit plans

37,293

19,177

94

6,527

19,177

(66)

Revaluation gain on property, plant and equipment

2,037,975

-

-

2,037,975

-

-

Less : Deferred tax (charge) / reversal on revaluation surplus

(27,325)

-

-

(27,325)

-

-

Net change in revaluation surplus

2,010,650

-

-

2,010,650

-

-

Net change in fair value (equity investments at FVOCI)

45,393

(29,429)

(254)

45,393

(29,429)

(254)

Total of items that will never be reclassified to

profit or loss

2,093,336

(10,252)

-

2,062,571

(10,252)

-

Total other comprehensive income, net of tax

2,093,336

(10,252)

-

2,062,571

(10,252)

-

Total comprehensive income for the period

27,148,349

21,537,243

26

10,495,264

5,829,136

80

Basic earnings per share (Rs.)

0.76

0.65

0.25

0.18

Figures in brackets indicate deductions.

LOLC Finance PLC

STATEMENT OF CHANGES IN EQUITY

For the year ended 31st March 2025

Stated Capital

Rs. '000

Statutory Reserve

Rs. '000

Revaluation Reserve

Rs. '000

Cash flow Hedge Reserve

Rs. '000

Fair Value Reserve

Rs. '000

Regulatory loss allowance reserve

Rs. '000

Merger Reserve

Rs. '000

Retained Earnings

Rs. '000

Total Equity

Rs. '000

Balance as at 01 April 2023

306,993,806

5,213,771

1,247,188

41,014

331,629

3,231,500

(262,914,890)

46,664,209

100,808,228

Total comprehensive income for the period

Profit for the period

-

-

-

-

-

-

-

21,547,495

21,547,495

Other comprehensive income, net of income tax

Remeasurements of defined benefit liability - gain / (loss)

-

-

-

-

-

-

-

19,177

19,177

Revaluation gain on fair value through OCI investments

-

-

-

-

(29,429)

-

-

-

(29,429)

Total other comprehensive income for the period

-

-

-

-

(29,429)

-

-

19,177

(10,252)

Total comprehensive income for the period

-

-

-

-

(29,429)

-

-

21,566,672

21,537,243

Transactions recorded directly in equity

Transferred to / (from) regulatory loss allowance reserve

-

-

-

-

-

3,584,623

-

(3,584,623)

-

Transfer to Statutory Reserve Fund

-

1,077,375

-

-

-

-

-

(1,077,375)

-

Total transactions recorded directly in equity

-

1,077,375

-

-

-

3,584,623

-

(4,661,998)

-

Balance as at 31 March 2024

306,993,806

6,291,146

1,247,188

41,014

302,200

6,816,124

(262,914,890)

63,568,884

122,345,471

Balance as at 01 April 2024

306,993,806

6,291,146

1,247,188

41,014

302,200

6,816,124

(262,914,890)

63,568,884

122,345,471

Total comprehensive income for the period

Profit for the period

-

-

-

-

-

-

-

25,055,012

25,055,012

Other comprehensive income, net of income tax

Remeasurements of defined benefit liability - gain / (loss)

-

-

-

-

-

-

-

37,293

37,293

Revaluation gain on property, plant and equipment

-

-

2,010,650

-

-

-

-

-

2,010,650

Revaluation gain on fair value through OCI investments

-

-

-

-

45,393

-

-

-

45,393

Total other comprehensive income for the period

-

-

2,010,650

-

45,393

-

-

37,293

2,093,336

Total comprehensive income for the period

-

-

2,010,650

-

45,393

-

-

25,092,305

27,148,349

Transactions recorded directly in equity

Transferred to stated capital during the year

(262,914,890)

-

-

-

-

-

262,914,890

-

-

Transferred to / (from) regulatory loss allowance reserve

-

-

-

-

-

(680,884)

-

680,884

-

Transferred to retained earnings during the year

-

-

(424,642)

(41,014)

(178,499)

-

-

644,156

-

Revaluation surplus transferred to retained earnings upon the disposal of fixed assets

-

-

(91,911)

-

-

-

-

91,911

-

Transfer to Statutory Reserve Fund

-

1,252,751

-

-

-

-

-

(1,252,751)

-

Total transactions recorded directly in equity

(262,914,890)

1,252,751

(516,553)

(41,014)

(178,499)

(680,884)

262,914,890

164,200

-

Balance as at 31 March 2025

44,078,916

7,543,897

2,741,285

-

169,094

6,135,239

-

88,825,389

149,493,820

STATEMENT OF CASH FLOWS

For the year ended 31st March 2025

Mar-25 Rs. '000

Mar-24 Rs. '000

Cash flows from operating activities

Profit before income tax expense

25,055,012

21,547,495

Adjustments for: Depreciation

1,304,748

1,186,106

(Profit) / loss on sales of investment property and PPE

26,217

(75,451)

Change in fair value of derivatives - forward contracts

(4,562)

52,793

Provision for fall / (increase) in value of investments

(1,749,861)

(978,722)

Derecognition loss on restructuring of SLISBs

3,710,480

-

Fair value gains / (losses) from government securities

(139,495)

(2,811,984)

Impairment provision / (reversal) for the period

(8,744,067)

(131,455)

Change in fair value of investment property

(2,740,806)

(7,065,106)

Provision for defined benefit plans

175,551

139,174

Share profit of equity accounted investee

(22,834)

(33,934)

Investment income

(4,392,599)

(5,138,302)

Finance costs

26,211,478

37,019,230

Operating profit before working capital changes

Change in other receivables

38,689,263

2,583,924

43,709,843

1,811,069

Change in inventories

13,558

106,471

Change in trade payables

1,955,498

(155,867)

Change in accruals and other payables

4,008,912

5,139,372

Change in amounts due from related parties

54,445

(53,985)

Change in amounts due to related parties

493,582

(737,156)

Financial assets at amortised cost - loans and advances to customers

(46,868,504)

(366,021)

Financial liabilities at amortised cost - due to depositors

21,846,681

5,787,351

Cash (used in) / generated from operations

Finance cost paid on deposits

22,777,360

(26,651,744)

55,241,077

(34,042,088)

Gratuity paid

(80,911)

(81,019)

Income tax paid

(669,789)

-

Net cash from / (used in) operating activities

(4,625,084)

21,117,970

Cash flows from investing activities

Acquisition of property, plant & equipment & investment property

(7,123,762)

(3,575,071)

Proceeds from sale of property, plant & equipment & investment property

665,850

2,114,172

Purchase of government securities

(17,335,720)

(32,117,687)

Proceeds from sale of government securities

20,283,450

32,178,657

Net proceeds from investments in commercial papers

1,447,023

1,355,744

Net proceeds from investments in term deposits

1,167,981

(1,566,550)

Net proceeds from investments securities

108,254

(11,693,229)

Investment in associates / subsidiaries

272,778

-

Interest received

4,569,877

5,138,302

Net cash flows used in investing activities

4,055,731

(8,165,661)

Cash flows from financing activities

Net proceeds from interest bearing loans & borrowings

(3,808,753)

(5,909,456)

Proceeds from issue / (disposal) of debentures

-

(2,500,000)

Repayment of principal portion of lease liabilities

197,651

(522,562)

Finance cost paid on borrowings

(2,161,998)

(5,251,951)

Net cash flows from / (used in) financing activities

(5,773,100)

(14,183,968)

Net increase / (decrease) in cash and cash equivalents

(6,342,453)

(1,231,660)

Cash and cash equivalents at the beginning of the period

6,469,267

7,700,926

Cash and cash equivalents at the end of the period

126,813

6,469,267

Analysis of Cash and Cash equivalents at the end of the period

Cash and Bank Balances

9,007,891

11,486,914

Bank Overdraft

(8,881,078)

(5,017,647)

Cash and cash equivalents at the end of the period

126,813

6,469,267

OPERATING SEGMENTS

For the year ended 31st March 2025

SME Finance

Rs '000

Personal Finance

Rs '000

Alternate Financial Services

Rs '000

Gold Loans

Rs '000

For the year ended 31st March 2025

Total revenue

48,484,474

7,708,085

7,559,943

6,147,191

Inter-segmental revenue

-

-

-

-

External revenue

48,484,474

7,708,085

7,559,943

6,147,191

Net interest cost

(17,263,421)

(2,071,013)

(2,260,610)

(2,924,157)

Profit before operating expenses

31,221,053

5,637,072

5,299,334

3,223,034

Operating expenses

(14,487,363)

(2,782,261)

(2,322,601)

(1,981,977)

Allowance for impairment

(1,102,907)

1,211,440

69,389

17,920

Value added tax on financial services

(3,600,816)

(875,516)

(638,629)

(262,148)

Profit before income tax

12,029,967

3,190,734

2,407,494

996,829

For the year ended 31st March 2024

Total revenue

56,538,901

7,041,846

7,086,229

8,908,903

Inter-segmental revenue

-

-

-

-

External revenue

56,538,901

7,041,846

7,086,229

8,908,903

Net interest cost

(24,050,246)

(2,702,089)

(3,610,616)

(4,142,531)

Profit before operating expenses

32,488,655

4,339,756

3,475,613

4,766,372

Operating expenses

(14,393,439)

(2,548,487)

(1,598,541)

(1,954,266)

Allowance for impairment

(2,451,361)

405,251

(232,089)

(133,229)

Value added tax on financial services

(1,997,102)

(330,041)

(353,488)

(402,519)

Profit before income tax

13,646,753

1,866,479

1,291,495

2,678,878

As at 31.03.2025

Total assets

192,335,651

24,100,698

39,311,737

36,578,185

Total liabilities

125,464,907

15,721,432

25,643,937

23,860,780

As at 31.03.2024

Total assets

167,182,296

19,147,726

31,562,074

27,099,598

Total liabilities

112,995,537

12,941,607

21,332,244

18,316,136

Others

Rs '000

5,277,626

-

5,277,626

(1,610,253)

3,667,373

(1,562,441)

(135,506)

(381,092)

1,588,334

6,146,071

-

6,146,071

(2,196,379)

3,949,691

(1,476,807)

73,834

(382,661)

2,546,718

12,914,393

8,424,351

13,380,464

9,043,618

(Eliminations)

/ Unallocated

Rs '000

(1,860,073)

-

(1,860,073)

(82,024)

(1,942,098)

(838,940)

7,622,691

-

4,841,654

3,018,682

-

3,018,682

(317,367)

2,701,315

(79,846)

(2,319,117)

-

302,351

124,737,977

81,369,411

119,100,071

80,497,617

Total

Rs '000

73,317,245

-

73,317,245

(26,211,478)

47,105,767

(23,975,582)

7,683,028

(5,758,201)

25,055,012

88,740,631

-

88,740,631

(37,019,230)

51,721,402

(22,051,386)

(4,656,710)

(3,465,810)

21,547,495

429,978,639

280,484,819

377,472,229

255,126,758

NOTES TO INTERIM FINANCIAL STATEMENTS

As at 31st March 2025

  1. General

    • These interim financial statements have been prepared in accordance with LKAS 34 Interim Financial Reporting and do not include all of the information required for a full set of financial statements.

    • The requirements of the Colombo Stock Exchange and the Companies Act No.7 of 2007 have also been considered in preparing these financial statements

    • The information for the preparation of these interim financial statements has been drawn up from the previous year's audited financial records of the Company.

    • Accounting policies and methods of computation as stated in the audited financial statements for the year 2023/24 are followed in the preparation of these Interim Financial Statements.

    • Interest income recognized in profit or loss using the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability to the carrying amount of the financial asset or liability. Other operating income includes commision income, capital gains / losses arising from marked to market valuation of quoted shares held for trading purposes, dividends, fee income, collections from contracts written off and other sundry income.

    • The Company's Profit for the year ended March 31, 2025, amounted to Rs. 25 billion, reflecting a 16% increase in profitability compared to the previous year. The net lending portfolio recorded significant growth of Rs. 47 billion, rising from Rs. 250 billion to Rs. 297 billion during the financial year. Additionally, the deposit base expanded from Rs. 206 billion to Rs. 226 billion as of March 31, 2025. Both interest income and interest expenses declined during the period, primarily due to lower market interest rates. Effective management of non-performing loans (NPLs), along with a net reversal of Rs. 7.3 billion in impairment provisions related to ISB investments-following the debt restructuring-contributed to a substantial reduction in provisions compared to the prior year. However, other operating income declined year-over-year, mainly due to lower revaluation gains on investment properties compared to the previous year and a derecognition loss of Rs. 3.7 billion on the restructuring of SLISBs during the current financial year.

  2. Stated Capital

    The Stated Capital of the Company is represented by 33,079,212,299 ordinary shares.

  3. Provision for management expenditure

    All expenses related to management expenditure are fully provided for in these Interim Financial Statements.

  4. Share information

    Market prices of ordinary shares recorded during the quarter ended 31st March 2025 are as follows:

    Rs'

    Last traded price

    6.00

    Highest Price

    7.40

    Lowest Price

    5.50

  5. Debenture information

    The debt capital of the company comprises rated unsecured subordinated redeemable debentures fifty million (50,000,000) issued in Sep 2020. These debentures are listed in the Colombo Stock Exchange and Lanka Rating Agency rated Rs.5Bn debentures as A positive.

    • Interest rates of the debentures

      Instrument type

      Interest frequency

      Coupon ( % p.a )

      Interest yield as at last trade

      Yield to maturity of last trade done

      Interest rate of comparable Government

      Security

      Type A - 5 Years Tenor

      Semi-annually

      10.50%

      10.50%

      8.86%

      10.33%

      Type B - 5 Years Tenor

      Semi-annually

      19.63%

      19.63%

      19.63%

      10.33%

      - Market prices & issue prices of debentures recorded during the quarter ended 31st March 2025 are as follows.

      Instrument Type

      Issue Price

      Highest Price

      Lowest Price

      Last Traded Price

      Last Traded Date

      Type A - 5 Years Tenor

      Rs.100.00

      Not Traded

      Not Traded

      Not Traded

      N/A

      Type B - 5 Years Tenor

      Rs.100.00

      Not Traded

      Not Traded

      Not Traded

      N/A

      - Debt security related ratios

      As at 31.03.2025

      As at 31.03.2024

      Debt to equity ratio (With Deposits)

      1.67 times

      1.89 times

      Quick asset ratio

      0.7 times

      0.94 times

      Interest cover

      1.96 times

      1.58 times

  6. Credit rating - Lanka Rating Agency

The Company has been assigned A positive by Lanka Rating Agency.

NOTES TO INTERIM FINANCIAL STATEMENTS

As at 31st March 2025

  1. Financial assets and liabilities

    1. Accounting classifications and fair values

As at 31st March 2025

The table below sets out the carrying amounts of the Company's financial assets and financial liabilities.

Rs. '000

Description

Fair value through profit or loss

Fair value through other comprehensive income

Amortized cost / Not measured at fair value

Total Carrying amount

Fair value

Fair value measurement level

Cash and cash equivalents

-

-

9,007,891

9,007,891

9,007,891

Placements with banks

-

-

2,794,251

2,794,251

2,794,251

Securities purchased under resale agreements

-

-

280,245

280,245

280,245

Level 1

Derivative financial instruments

6,499

-

-

6,499

6,499

Level 2

Financial assets recognised through profit or loss - measured at fair value

33,324,964

-

-

33,324,964

33,324,964

Level 1 / 2

Financial assets at amortised cost - loans and advances to customers

297,402,131

297,402,131

297,486,140

Level 2

Financial assets at amortised cost - debt and other financial instruments

-

-

14,829,142

14,829,142

13,263,651

Level 2

Financial assets measured at fair value through other comprehensive income

-

322,744

-

322,744

322,744

Level 2

Other financial assets

-

-

247,312

247,312

247,312

Total financial assets

33,331,463

322,744

324,560,973

358,215,179

356,733,697

Bank overdraft

-

-

8,881,078

8,881,078

8,881,078

Derivative financial instruments

-

-

1,938

1,938

1,938

Level 2

Financial liabilities at amortised cost - due to depositors

-

-

225,717,329

225,717,329

229,572,572

Level 2

Financial liabilities at amortised cost - borrowings

-

-

15,680,980

15,680,980

15,542,959

Other financial liabilities

-

-

2,943,446

2,943,446

2,943,446

Total financial liabilities

-

-

253,224,771

253,224,771

256,941,993

NOTES TO INTERIM FINANCIAL STATEMENTS

As at 31st March 2025

  1. Financial assets and liabilities

    1. Accounting classifications and fair values

      As at 31st March 2024

      The table below sets out the carrying amounts of the Company's financial assets and financial liabilities.

      Rs. '000

      Description

      Fair value through profit or loss

      Fair value through other comprehensive income

      Amortized cost / Not measured at fair value

      Total Carrying amount

      Fair value

      Fair value measurement level

      Cash and cash equivalents

      -

      -

      11,486,914

      11,486,914

      11,486,914

      Placements with banks

      -

      -

      4,060,475

      4,060,475

      4,060,475

      Securities purchased under resale agreements

      -

      -

      2,318,268

      2,318,268

      2,318,268

      Level 1

      Derivative financial instruments

      -

      -

      -

      -

      -

      Level 2

      Financial assets recognised through profit or loss - measured at fair value

      32,215,529

      -

      -

      32,215,529

      32,215,529

      Level 1 / 2

      Financial assets at amortised cost - loans and advances to customers

      249,641,762

      249,641,762

      253,061,218

      Level 2

      Financial assets at amortised cost - debt and other financial instruments

      -

      -

      12,992,020

      12,992,020

      12,875,859

      Level 2

      Financial assets measured at fair value through other comprehensive income

      -

      277,350

      -

      277,350

      277,350

      Level 2

      Other financial assets

      -

      -

      128,060

      128,060

      128,060

      Total financial assets

      32,215,529

      277,350

      280,627,500

      313,120,379

      316,423,674

      Bank overdraft

      -

      -

      5,017,647

      5,017,647

      5,017,647

      Derivative financial instruments

      -

      -

      -

      -

      -

      Level 2

      Financial liabilities at amortised cost - due to depositors

      -

      -

      206,368,226

      206,368,226

      211,227,573

      Level 2

      Financial liabilities at amortised cost - borrowings

      -

      -

      19,711,407

      19,711,407

      21,306,639

      Other financial liabilities

      -

      -

      636,714

      636,714

      636,714

      Total financial liabilities

      -

      -

      231,733,995

      231,733,995

      238,188,573

      LOLC Finance PLC

      NOTES TO INTERIM FINANCIAL STATEMENTS

      As at 31st March 2025

    2. Financial assets and liabilities- Valuation technique Level 2 fair value - discounted cash flows

      • Financial instruments not measured at fair value

      • For the purpose of disclosing fair value of the financial instruments not measured at fair value (carried at amortized cost) discounted cash flows has been used to derive the fair value.

  1. Events after reporting date

    There have been no material events occurring after the reporting date that require adjustment to or disclosure in these Financial Statements.

  2. Selected performance indicators

    Regulatory Capital Adequacy

    31.03.2025

    31.03.2024

    - Total Tier I Core Capital

    Rs. '000

    104,612,131

    87,039,551

    - Total Capital Base

    Rs. '000

    103,537,775

    87,033,260

    - Core capital adequacy ratio

    (Minimum requirement 10%)

    25.32%

    23.01%

    - Total capital adequacy ratio

    (Minimum requirement 17%)

    25.06%

    23.00%

    Asset Quality Ratios

    31.03.2025

    31.03.2024

    - Net Non-Performing Advances Ratio

    4.97%

    10.48%

    Regulatory Liquidity

    31.03.2025

    31.03.2024

    - Available Liquid Assets

    Rs. '000

    33,973,375

    36,462,941

    - Required Liquid Assets

    Rs. '000

    24,236,615

    22,293,530

    - Liquid assets to Deposits ratio

    15.05%

    17.18%

  3. Contingent liabilities

    There are no significant changes in the nature of the contingent liabilities other than disclosed in the audited financials for the year ended 31 March 2024.

  4. Comparative information

    Comparative information has been reclassified to conform to the current period's presentation, where necessary. No information has been restated.

  5. Other Disclosure Information

    The proceeds derived from debenture and rights issues in previous periods have been wholly allocated to the objectives delineated in the respective prospectuses. Consequently, in conformity with the stipulations set forth in Rules 7.6 (XIII) and Appendix 7A Part (a) Item 3 of the Listing Rules of the pertinent Colombo Stock Exchange (CSE), there exists no obligatory requirement for additional disclosures.

  6. Capital Reduction

At the Extraordinary General Meeting held on July 29, 2024, the shareholders of LOLC Finance PLC (LOFC) approved a resolution for a capital reduction in accordance with the Companies Act No. 7 of 2007. The purpose of this capital reduction was to eliminate the negative merger reserve arising from amalgamations conducted in previous years.

The capital reduction involved offsetting the negative merger reserve of Rs. 262,914,889,649 against the existing stated capital of Rs. 306,993,805,501. This adjustment did not affect the company's equity, and it entailed no movement of cash or assets. Additionally, there was no impact on the number of shares outstanding for the entity.

LOLC Finance PLC

STATEMENT OF DIRECTORS' HOLDING AND CHIEF EXECUTIVE OFFICER'S HOLDING IN SHARES OF THE ENTITY

As at 31st March 2025

Directors Name

No. of shares

%

Mr F K C P N Dias

(Chairman / Non Executive Director)

Nil

Nil

Mr D.M.D.K.Thilakaratne

(Director / CEO)

Nil

Nil

Mr B.C.G. de Zylva

(Non Executive Director)

Nil

Nil

Mr P.A. Wijeratne

(Independent Director)

455,998

0.001

Ms K. T. Chamila Priyangani

(Independent Director)

Nil

Nil

Mr. A. J. L. Peiris

(Independent Director)

Nil

Nil

Mr. S. Lankathilake

(Independent Director)

Nil

Nil

LOLC Finance PLC

TOP 20 SHAREHOLDERS

As at 31st March 2025

Shareholder

No. of Shares

% of Issued Capital

LOLC Ceylon Holdings Limited

29,179,995,406

88.21

LOLC Asia Private Limited

1,892,235,176

5.72

Hatton National Bank PLC / LOLC Ceylon Holdings Limited

909,523,810

2.75

Commercial Bank of Ceylon PLC / Phantom Investments (Private) Limited

108,430,628

0.33

Sampath Bank PLC / Andaradeniya Estate Private Limited

25,059,524

0.08

Mr. S. Vasudevan

20,917,827

0.06

Mr. V.R. Ramanan

20,900,000

0.06

Mr. M.C. Pushpakumara

10,091,295

0.03

Mr. R.E. Rambukwelle

9,758,752

0.03

Mr. A.J. Tissera

9,257,480

0.03

CIC Holdings PLC / CIC Charitable & Educational Trust Fund

8,707,200

0.03

Ms. M.I. Thanudara

7,913,276

0.02

Mr. B.W. Kundanmal

7,500,000

0.02

Mr. B.C.S.T.I. Rodrigo

6,500,000

0.02

Merchant Bank of Sri Lanka & Finance PLC / Maweli Finance (Pvt) Ltd

6,500,000

0.02

Mr. A.A. Sunil

5,665,468

0.02

Assetline Finance Ltd / M.D.N.P. Fonseka & W.H. Nawodya

5,317,739

0.02

Hatton National Bank PLC / Anuja Chamila Jayasinghe

4,925,360

0.01

Synamon Global Pvt Ltd

4,859,326

0.01

Senkadagala Finance PLC / S.Gobinath

4,790,000

0.01

Total shares held by Top 20 Shareholders

32,248,848,267

97.49

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Public shareholding

Information pertaining to public shareholding as at 31st March 2025 is as follows:

31-Mar-25

31-Mar-24

Public holding percentage

3.31%

3.31%

Number of public shareholders

17,450

19,600

Float Adjusted Market Capitalization

6,468,309,641

6,577,848,666

The Company is not compliant with the minimum public holding requirement stipulated in the Listing Rule 7.13.1.i (b) of the Colombo Stock Exchange. This arose consequent to the merger with subsidiaries (Commercial Leasing and Finance PLC and LOLC Development Finance PLC) took place on 31st March 2022 and 31st January 2023 respectively.

The Board of Directors of the Company is in the process of evaluating options in this regard.

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