Interim Financial statements for the Period Ended 31st March 2025

As at,

Notes

31.03.2025 31.03.2024

Unaudited Audited Change %

Rs. '000 Rs. '000

Assets

Cash and cash equivalents

11.1

255,306 673,411 (62.1)

Placements with banks and financial institutions

11.1

1,563,381 1,455,435 7.4

Investments in securities

11.1

1,012,696 1,730,481 (41.5)

Financial assets measured at amortised cost - Loans and advances

11.1

17,193,958 11,242,525 52.9

Real estate stock

57,859 56,905 1.7

Property, plant and equipment

324,014 268,886 20.5

Intangible assets

55,115 60,285 (8.6)

Right of use assets

186,550 168,098 11.0

Deferred tax assets

122,345 122,345 0.0

Other Assets

535,170 538,830 (0.7)

Total Assets

21,306,394 16,317,201 30.6

Liabilities

Due to banks

11.1

3,003,521 1,741,718 72.4

Deposits due to customers

11.1

14,408,098 11,238,015 28.2

Debt securities issued

11.1

19,000 18,400 3.3

Lease liabilities

185,449 170,393 8.8

Employee benefit obligation

22,654 16,205 39.8

Other liabilities

617,958 409,117 51.0

Total Liabilities

18,256,680 13,593,849 34.3

Equity

Ordinary share capital

3,762,054 3,762,054 (0.0)

Statutory reserve fund

21,202 21,202 (0.0)

Regulatory loss allowances reserve

- 54,173 (100.0)

Accumulated losses

(733,542) (1,114,077) 34.2

Total Equity

3,049,714 2,723,352 12.0

Total Liabilities & Equity

21,306,394 16,317,201 30.6

Contingent liabilities and commitments 74,681 44,042 69.6

Net assets value per ordinary share (Rs.) 7.52 6.72 12.0

CERTIFICATION

We certify that the above interim financial statements are in compliance with the requirement of the Companies Act No 07 of 2007.

We also certify that financial records have been properly maintained and the financial statements give a true and fair view of the Entity's operations and finances.

Sgd. Sgd.

Amila Bandara Ajith Medis

Head of Finance Chief Executive Officer

The Board of Directors is responsible for the preparation and presentation of these Interim Financial Statements. Approved and signed for and on behalf of the Board of Directors.

Sgd. Sgd.

Chandula Abeywickrema Ashoka Goonesekere

Chairman Director

16th May 2025 Colombo

For the year ended

For the quarter ended

31.03.2025

Unaudited Rs. '000

31.03.2024

Audited Rs. '000

Change %

31.03.2025

Unaudited Rs. '000

31.03.2024

Unaudited Rs. '000

Change

%

Gross Income

4,264,793

3,344,778

27.5

1,176,622

895,392

31.4

Interest income

3,954,324

3,092,836

27.9

1,091,737

835,180

30.7

Less: Interest expense

1,976,059

1,987,603

(0.6)

498,613

507,522

(1.8)

Net interest income

1,978,265

1,105,233

79.0

593,124

327,658

81.0

Fee and commission income

77,917

39,498

97.3

24,943

14,465

72.4

Unit Trsut Investment Income

105,808

130,609

(19.0)

9,836

22,546

(56.4)

Other operating income

126,743

81,835

54.9

50,107

23,201

116.0

Total operating income

2,288,734

1,357,175

68.6

678,010

387,870

74.8

Less: Impairment charges for loans and receivables and other

losses

288,301

225,546

27.8

58,540

30,498

91.9

Net operating income

2,000,433

1,131,629

76.8

619,470

357,372

73.3

Less: Personnel Expenses

586,588

254,568

130.4

175,257

100,900

73.7

Depreciation of property, plant and equipment

66,379

50,934

30.3

17,918

13,913

28.8

Amortisation of intangible assets

3,877

3,332

16.4

1,292

1,279

1.0

Amortisation of right of use assets

59,664

53,559

11.4

26,067

12,903

102.0

Other expenses

805,671

740,793

8.8

205,675

152,679

34.7

Operating profit / (loss) before tax on financial services

478,254

28,443

1,581.5

193,260

75,698

155.3

Less : Tax on financial services

151,892

53,434

184.3

57,716

42,346

36.3

Profit /(loss) before income tax

326,363

(24,991)

(1,405.9)

135,544

33,352

306.4

(Less)/Add: Income tax (expense)/reversal

-

44,253

-

-

28,901

-

Profit/(loss) for the period

326,363

19,262

1,594.3

135,544

62,253

117.7

Basic earnings/(loss) per share - (Rs)

0.81

0.05

1,594.3

0.33

0.15

123.0

For the year Ended 31st March

For the year ended

For the quarter ended

31.03.2025

Unaudited Rs. '000

31.03.2024

Audited Rs. '000

Change %

31.03.2025

Unaudited Rs. '000

31.03.2024

Unaudited Rs. '000

Change %

Profit / (loss) for the period

326,363

19,262

1,594.3

135,544

62,253

(117.7)

Items that will not be reclassified to profit or loss

Actuarial loss on defined benefit plans Deferred tax effect on actuarial loss

-

-

(4,091)

(1,227)

100.0

100.0

-

-

-

-

-

-

Other comprehensive income for the period

-

(5,318)

100.0

-

-

-

Total comprehensive income/(loss) for the period

326,363

13,944

2,240.5

135,544

62,253

117.7

In thousands of rupees

Ordinary share

capital

Reserve fund

Regulatory

loss allowances reserve

Retained

earnings

Total equity

Balance as at 01st April 2023 (Audited)

3,762,054

20,239

-

(1,072,884)

2,709,409

Profit for the year ended 31st March 2024

-

-

19,262

19,262

Remeasurement of defined benefit liability

(4,091)

(4,091)

Tax on other comprehensive income

(1,227)

(1,227)

Total other comprehensive income/(Loss)

(5,319)

(5,319)

Total comprehensive income

13,943

13,943

Transfers to / from the regulatory loss allowances reserve

54,173

(54,173)

-

Transfers to the statutory reserve fund

963

(963)

-

Balance as at 31st March 2024 (Audited)

3,762,054

21,202

54,173

(1,114,077)

2,723,352

Balance as at 01st April 2024 (Audited)

3,762,054

21,202

54,173

(1,114,077)

2,723,352

Profit for the year ended 31st March 2025

-

-

326,363

326,363

Other comprehensive income

Total other comprehensive income

-

-

-

-

Total comprehensive income /(loss)

-

-

326,363

326,363

Transfers to / from the regulatory loss allowances reserve

(54,173)

54,173

Total transactions with owners of the Company

-

-

-

-

Balance as at 31st March 2025 (Unaudited)

3,762,054

21,202

-

(733,542)

3,049,715

Figures in brackets indicate deductions.

For the year Ended 31st March

31.03.2025

Unaudited Rs. '000

31.03.2024

Audited Rs. '000

Cash flows from operating activities

Profit/(Loss) before tax

326,363

(24,991)

Adjustment for:

- Depreciation and amortisation

129,920

107,825

- Net gain on investment securities at FVPTL

(105,808)

(130,609)

- Net impairment loss on loans and advances

288,301

225,546

- Interest expense on preference shares

600

600

- Interest expense due to banks

345,249

113,968

- Interest expense on leases

36,398

27,817

- Dividend on equity securities at FVPTL

(344)

(180)

- Interest income

(179,076)

(443,602)

- Provision for retirement benefit obligation

7,601

6,086

- Loss / (Gain) on disposal of property, plant and equipment

-

(7)

Net cash used in operating activities

849,202

(117,546)

Changes in

Financial assets measured at amortised cost - Loans and advances

(6,239,733)

(3,085,202)

Other assets

3,660

(259,221)

Due to customers

3,170,083

3,586,894

Other liabilities

208,841

305,757

(2,007,946)

430,683

Retiring gratuity paid

(1,257)

(6,068)

Interest paid due to bank

(345,249)

(94,059)

Net cash generated from / (used in) operating activities

(2,354,452)

330,556

Cash flows from investing activities

Interest income on short term investment

179,076

443,602

Investment/upliftment of fixed deposits

(107,946)

(191,365)

Net proceeds from investments in securities

823,592

(873,235)

Acquisition of property, plant and equipment

(55,129)

(152,708)

Purchase of intangible assets

5,170

(19,378)

Proceeds from disposal of property, plant and equipment

-

7

Dividends received from investments

344

180

Net cash generated from / (used in) investing activities

845,109

(792,898)

Cash flows from financing activities

Net proceeds from Borrowing from due to banks

856,918

755,158

Lease rental payments

(109,441)

(68,698)

Net cash generated from / (used in) financing activities

747,477

686,459

Net increase in cash and cash equivalents

(761,866)

224,116

Cash and cash equivalents at beginning of the year

464,397

240,281

Cash and cash equivalents at the end of the year

(297,468)

464,397

Cash and cash equivalents at the end of the year

Cash and cash equivalents

255,306

673,411

Bank overdraft

(552,773)

(209,014)

(297,467)

464,397

‌1

2

3

4

CONDENSED INTERIM FINANCIAL STATEMENTS EXPLANATORY NOTES

PMF Finance PLC ("the Company") is a Licensed Finance Company registered under the Finance Business Act No. 42 of 2011 and listed on the Colombo Stock Exchange. The Company was incorporated on 26 January 1983 and is domiciled in Sri Lanka. The Company was listed on the main board of Colombo Stock Exchange on 11th July 1994 and transferred to Dirisavi Board with effect from 2nd July 2018. The registered office of the Company and the principal place of the business is situated at No. 361, 361/1, R.A.De Mel Mawatha, Colombo 03.

The condensed Interim Financial Statements are in compliance with the Sri Lanka Accounting Standard - LKAS 34 - Interim Financial Reporting and the provisions of the Companies Act No. 7 of 2007 and provide the information as required in terms of Rule 7.4 of Colombo Stock Exchange .

There are no significant changes in the accounting policies since the publication of 2023/24 Audited Financial Statements.

Share capital

As at

31.03.2025

31.03.2024

Ordinary Shares (Number of Shares)

405,301,750

405,301,750

Ordinary Shares (Value Rs.)

3,762,054,500

3,762,054,500

5

Preference shares

As at

31.03.2025

31.03.2024

Cumulative Preference Shares (Number of Shares)

1,000,000

1,000,000

Cumulative Preference Shares (Value Rs.)

10,000,000

10,000,000

6

Market Price

Market Price

31.03.2025

31.03.2024

Rs.

Rs.

Highest

8.50

4.90

Lowest

6.80

3.60

Closing

7.20

4.70

7

Ratios

Ratios

As at 31.03.2025

As at 31.03.2024

Debt to equity ratio (times)

5.71

4.77

Interest cover (times)

1.24

1.25

Return on Assets

1.52

0.14

8

Twenty Largest Ordinary Shareholders as at 31st March 2025

Name of the Share Holder

No: of Shares

%

STERLING CAPITAL INVESTMENTS (PRIVATE) LIMITED

330,714,052

81.60

PEOPLES BANK

33,856,246

8.35

PEOPLE'S LEASING & FINANCE PLC

25,014,002

6.17

MR. L. DE FONSEKA

900,000

0.22

MR. Z.G. CARIMJEE

600,000

0.15

PEOPLE'S LEASING & FINANCE PLC/DR.H.S.D.SOYSA & MRS.G.SOYSA

524,064

0.13

MRS. L.A.K.R. ABEYKOON

400,000

0.10

MR. H.V. PAKIANATHAN

370,143

0.09

MR. V.C. SOYSA

368,620

0.09

DR. H.S.D. SOYSA (Joint 1 - MRS. G. SOYSA)

348,000

0.09

MR. H. BERUWALAGE

344,088

0.08

MR. G.G.A.M.R.K. ABEYKOON

300,000

0.07

MR. H.G.D.R.D.K. JAYAWARDANA

290,186

0.07

MR. L.C.A. WICKRAMASINGHE

280,000

0.07

MR. D. SELVARAJ

270,175

0.07

SENKADAGALA FINANCE PLC/W.G.HERATH

231,270

0.06

A PLUS ECO (PVT) LTD

225,000

0.06

MR. D.T. BERUWALAGE

202,480

0.05

MRS P.D.A.S.K. BERUWALAGE

200,348

0.05

ONLINE BUSINESS ADVISOR (PVT) LTD

200,000

0.05

395,638,674

97.62

9

Directors and Chief Executive Officer's holding in Shares as at 31st March 2025

Name

Position

No: of Shares

Chandula Palith Abeywickrema

Chairman

-

Moderage Joseph Travis Waas

Director

-

Krystle Reid Wijesuriya

Director

-

Michael Nirmal De Silva

Director

-

Rohan Gerald Pandithakoralage

Director

-

Kariyapperu Mudiyanselage Dharmasiri Bandara Rekogama

Director

-

Weerasinghe Mudiyanselage Kanishka Lilantha Weerasinghe

Director

-

Ashoka Goonesekere

Director

-

Lansage Ajith Prasanna Medis

CEO

-

Total

-

1. Public Holding as at 31st March 2025

   Public Holding percentage as at 31st March 2025 being 18.403% comprising of 9,989 shareholders The Float adjusted market capitalisation as at 31st March 2025 - Rs.537,031,303

   The Float adjusted market capitalization of the Company falls under Option 2 of Rule 7.13.1 (i) (b), of the Listing Rules of the Colombo Stock Exchange and the Company has complied with the minimum public holding requirement applicable under the said option.

2. Financial instruments

   1. Analysis of financial instrument by measurement basis

As at 31st March 2025

Financial instruments recognized through profit or loss (FVTPL)

Rs. '000

Financial instruments recognized through other comprehensive income (FVTOCI)

Rs. '000

Financial instruments at amortised cost (AC)

Rs. '000

Total Rs. '000

Assets

Cash and cash equivalents

Balances with banks and financial institutions

Financial assets measured at amortised cost - Loans and advances Investments in securities

-

-

-1,012,673

-

-

-23

255,306

1,563,381

17,193,958

-

255,306

1,563,381

17,193,958

1,012,696

Total Financial Assets

1,012,673

23

19,012,644

20,025,340

Liabilities

Due to banks

Financial liabilities at amortised cost - due to depositors Debt securities issued

-

-

-

-

-

-

3,003,521

14,408,098

19,000

3,003,521

14,408,098

19,000

Total Liabilities

-

-

17,430,619

17,430,619

As at 31.03.2024

Financial instruments recognized through profit or loss (FVTPL)

Rs. '000

Financial instruments recognized through other comprehensive income (FVTOCI)

Rs. '000

Financial instruments at amortised cost (AC)

Rs. '000

Total Rs. '000

Assets

Cash and cash equivalents

Balances with banks and financial institutions

Financial assets measured at amortised cost - Loans and advances Investments in securities

-

-

-1,730,458

-

-

-23

673,411

1,455,435

11,242,525

-

673,411

1,455,435

11,242,525

1,730,481

Total Financial Assets

1,730,458

23

13,371,373

15,101,852

11.1 Analysis of financial instrument by measurement basis (Continued)

Liabilities

Due to banks

Financial liabilities at amortised cost - due to depositors Debt securities issued

-

-

-

-

-

-

1,741,718

11,238,015

18,400

1,741,718

11,238,015

18,400

Total Liabilities

-

-

12,998,134

12,998,134

11.2 Fair value measurement hierarchy

The following table shows the carrying amounts and fair values of financial assets and liabilities including their levels in the fair value hierarchy. It does not include fair value information for financial assets at fair value if the carrying amount is a reasonable approximation of fair value.

Carrying amount Rs. '000 Fair value Rs. '000

As At 31st March 2025

Level 1 Level 2 Level 3

Financial assets

Financial assets measured at fair value

Investment securities measured at FVTPL (note a) 1,012,673 5,493 1,007,180 -

Investment securities measured at FVOCI (note b) 23 - - 23

1,012,696 5,493 1,007,180 23

Financial assets not measured at fair value

Loans and advances (note c) 17,193,958 - - -

Cash and cash equivalent (note d) 255,306 - - -

Placements with banks and financial institutions (note e) 1,563,381 - - -

19,012,645 - - -

20,025,341 5,493 1,007,180 23

Carrying amount Rs. '000 Fair value Rs. '000

Level 1 Level 2 Level 3

Financial liabilities

Financial liabilities not measured at fair value

Due to banks (note f) 3,003,521 - - -

Deposits due to customers (note g) 14,408,098 - - -

Debt securities issued (note h) 19,000 - - -

Financial liabilities (note i) 640,612 - - -

Lease liabilities (note j) 185,449 - - -

18,256,681 - - -

18,256,681 - - -

Carrying amount Rs. '000 Fair value Rs. '000

As at 31st March 2024

Level 1 Level 2 Level 3

Financial assets measured at fair value

Investment securities measured at FVTPL (note a) 1,730,458 4,309 1,726,148 -

Investment securities measured at FVOCI (note b) 23 - - 23

1,730,481 4,309 1,726,148 23

Financial assets not measured at fair value

Loans and advances (note c) 11,242,525 - - 11,169,779

Cash and cash equivalent (note d) 673,411 - - -

Placements with banks and financial institutions (note e) 1,455,435 - - -

13,371,372 - - 11,169,779

15,101,852 4,309 1,726,148 11,169,802

There were no transfers between Level 1 and Level 2 during the reporting period.

Level 3 Fair value measurement

The following table shows a reconciliation from the beginning balance to the ending balance for fair value measurement in level 3 of the fair value hierarchy

Rs. "000

31.03.2025 31.03.2024

Balance at the beginning of the year

23

23

Changes in fair value during the period

-

-

Balance at the end of the year

23

23

For the Year ended 31st March

Leasing

Loans and Gold Loan

Margin Trading

Other

Total

2025

2024

2025

2024

2025

2024

2025

2024

2025

2024

Income

2,156,920

77,917

-118,260

1,482,323

39,498

-48,750

1,415,098

-

-5,553

976,647

-

-14,947

106,437

-

-

-

135,619

-

-

-

275,869

-105,808

2,930

498,246

-130,609

18,138

3,954,324

77,917

105,808

126,743

3,092,835

39,499

130,609

81,835

Interest income

Fee and commission income

Net income from other financial instruments at FVTPL Other operating income

Gross revenue

2,353,098

1,570,571

1,420,651

991,594

106,437

135,619

384,607

646,993

4,264,793

3,344,778

Less: Interest expenses

1,077,859

952,862

707,155

627,283

53,189

87,178

137,858

320,281

1,976,059

1,987,604

Total operating income

1,275,239

617,709

713,496

364,311

53,248

48,441

246,750

326,712

2,288,735

1,357,174

Net impairment charges/(reversal)

167,193

123,876

98,786

24,940

22,324

12,787

-

63,943

288,303

225,546

Net operating income

1,108,046

493,833

614,711

339,371

30,924

35,654

246,750

262,769

2,000,432

1,131,628

Less: Operating Expenses

830,286

528,731

544,728

348,361

40,972

48,374

106,193

177,720

1,522,179

1,103,186

Segment results

277,761

(34,898)

69,982

(8,990)

(10,047)

(12,720)

140,556

85,049

478,253

28,442

Less: Tax on financial services

Less: Income tax expense

Profit/(loss) attributable to equity holders

-

-

-

-

-

-

-

-

151,892

-

53,434

(44,253)

326,362

19,261

As at 31st December Segment Assets Total Assets

8,652,306

5,797,281

7,866,260

4,882,699

675,392

562,545

4,112,437

5,074,676

21,306,394

16,317,201

8,652,306

5,797,281

7,866,260

4,882,699

675,392

562,545

4,112,437

5,074,676

21,306,394

16,317,201

Segment Liabilities

Total Liabilities

7,413,849

4,829,852

6,740,314

4,067,892

578,719

468,670

3,523,799

4,227,435

18,256,680

13,593,849

7,413,849

4,829,852

6,740,314

4,067,892

578,719

468,670

3,523,799

4,227,435

18,257,079

13,593,849

‌CORPORATE INFORMATION

Name of Company

Branch Offices

Related Party Transactions Review

PMF Finance PLC

Corporate

Committee

Anuradhapura

Mr. A. Goonesekere - Chairman

Legal Form

Kurunegala

Mr. W. M. K. L. Weerasinghe

Public Limited Liability Company

Negombo

Ms. K. R. Wijesuriya

(Incorporated and domiciled in Sri Lanka)

Trincomalee

Kandy

Credit Committee

Date of Incorporation

Matara

Mr. C.P.Abeywickrema - Chairman

26thJanuary 1983

Homagama

Mr.M.J.T.Waas

Matugama

Dr. M. N. De Silva

Company Registration Number

Elpitiya

Mr. K. M. D. B. Rekogama

PQ 200

Gampaha

Wellawatta

IT Steering Committee

Matale

Dr. M. N. De Silva - Chairman

Narahenpitiya

Mr.M.J.T.Waas

Galle

Mr. K. M. D. B. Rekogama

Jaffna

Chilaw

Stock Exchange Listing

Board of Directors and Board Sub-

Procurement Committee

Committees

The ordinary shares of the Company were

Dr. M. N. De Silva - Chairman

quoted on the Colombo Stock Exchange

Board of Directors

Ms. K. R. Wijesuriya

(CSE) on 11th July 1994 on Main Board.

Mr. C.P.Abeywickrema - Chairman

Ordinary Shares has been transferred to Diri

Mr.M.J.T.Waas

Bankers

Savi Board with effect from July 02,2018.

Dr. M. N. De Silva

People's Bank

Ms. K. R. Wijesuriya

National Development Bank PLC

Mr. R. G. Pandithakoralage

Cargills Bank Ltd

Mr. K. M. D. B. Rekogama

Hatton National Bank PLC

Mr. A. Goonesekere

Commercial Bank PLC

Accounting Year-End

Mr. W. M. K. L. Weerasinghe

Pan Asia Bank Corporation PLC

March -31

Bank of Ceylon

Integrated Risk Management Committee

Subsidiary Company

Registered Office & Principle Place of

Mr.M.J.T.Waas - Chairman

PMB Services Limited

Business

Mr. C.P.Abeywickrema

No. 361,361/1, R.A.De Mel Mawatha,

Dr. M. N. De Silva

Vehicle Yard

Colombo 03, Sri Lanka

Mr. A. Goonesekere

01 No.479, Elvitigala Mawatha, Narahenpita.

02 Walawwatta, Waduragala, Kurunegala.

Telephone +94117666333/4

Board Audit Committee

Email; info@pmf.lk

Mr. A. Goonesekere - Chairman (appointed as

Web Address; https://www.pmf.lk

Committee Chairman w.e.f 31st January 2025)

Mr. C.P.Abeywickrema

Tax Payer Identity Number (TIN)

Registrars

Mr.M.J.T.Waas

134000228

Dr. M. N. De Silva (Chairman to the

committee until 31st January 2025)

SSP Corporate Services (Pvt) Ltd

Central Bank Registration Number

No. 101, Inner Flower Road,

HR & Remuneration Committee

LFC/043 (Under the Finance Business Act No.

Colombo 03, Sri Lanka

Mr. R. G. Pandithakoralage - Chairman

42 of 2011)

Telephone; +94112573894, +94112576871

Mr. C.P.Abeywickrema

Fax; +94112573609

Mr.M.J.T.Waas

Credit Agency Status

Ms. K. R. Wijesuriya

An approved Credit Agency under the

Email; sspsec@sltnet.lk

Mr. W. M. K. L. Weerasinghe

Mortgage Act No.6 of 1949 and the Trust

Receipt Ordinance No.12 of 1947 by the

department of Commerce.

Auditors

Nominations & Governance Committee

Ernst & Young

Mr. R. G. Pandithakoralage - Chairman

Credit Rating

Chartered Accountants

Mr. C.P.Abeywickrema

B + (Stable) by Lanka Rating Agency

No.109, Galle Road, P.O Box 101

Ms. K. R. Wijesuriya

Colombo 03.