Interim Financial Statements
For the Six Months Ended 30th September 2024
SARVODAYA DEVELOPMENT FINANCE PLC
CONTENTS
CEO's Message | 1 |
Statement of Profit or Loss and Other Comprehensive Income | 2 |
Statement of Financial Position | 3 |
Statement of Changes in Equity | 4 |
Statement of Cash Flows | 5 |
Notes to the Interim Financial Statements | |
1. Analysis of Financial Instruments by Measurement Basis | 6 |
2. Fair Value Measurement Hierarchy | 7 |
3. Financial Reporting by Segment | 8 |
4. Share Information | 9 |
5. Directors' and Chief Executive Officer's holding in Shares of the Company | 9 |
6. Top 20 Shareholders | 9 |
7. Public Shareholding and Float adjusted Market Capitalisation | 10 |
8. Stated Capital | 10 |
9. Explanatory Notes | 10 |
Corporate Information | 11 |
CEO'S MESSAGE
Dear Stakeholder,
It is my great pleasure to report a sustained and robust performance of Sarvodaya Development Finance PLC (SDF) for the six months ended 30th September 2024, in the financial year 2024/25, and to present a summary of the Company's performance.
As an impact-driven development finance company, our strategy remains focused on growth and sustainable development throughout FY 2024/25. With improving financial stability in Sri Lanka, following the IMF program, SDF has set a target to enhance its value distribution to the village economy. Consequently, we reported exceptional growth in the first half of FY 2024/25 compared to the same period in the previous financial year.
The company recorded a net profit (PAT) of LKR 215.7 million for the first six months, compared to LKR 78.9 million in the same period of the previous financial year, representing a more than twofold increase. This growth includes a 28.1% rise in gross income and a 7.8% reduction in interest expenses, resulting in a 57.2% improvement in net interest income. The efficiency ratio also improved to 52.9% from 69.4% reported during the same period last year, reflecting our ongoing improvements in operational efficiency and our strategic business approach.
In line with our highest-ever annual growth projections, SDF achieved its targets during the first half of FY 2024/25 by increasing total assets by LKR 3.3 billion, representing a 22.5% growth over the six-month period. To finance this growth, the company secured both local and international funds, leading to a 17.4% increase in the deposit base and a 58.8% rise in borrowings.
SDF provides its services through 56 branches and is connected to an island-wide ATM network, ensuring financial access across the country. With a village-focused business model, SDF works closely with Sarvodaya Shramadana Societies to create value for village economic empowerment, with over 1,200 societies being direct shareholders of the company.
As a socially responsible brand, our strategic focus remains on sustainable business activities and ESG initiatives to create a better future for the next generation.
I take this opportunity to express my gratitude to all our stakeholders, especially our customers, for their continued trust, and to the SDF team for their commitment, which has made this robust performance possible.
Sincerely
Nilantha Jayanetti
Chief Executive Officer
30th October 2024
Sarvodaya Development Finance PLC | Interim Financial Statements | 1 | |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Six months ended | For the Three months ended | |||||
30th Sept. | 30th Sept. | Variance | 30th Sept. | 30th Sept. | Variance | |
2024 | 2023 | 2024 | 2023 | |||
Un-auditedUn-audited | Un-auditedUn-audited | |||||
LKR | LKR | % | LKR | LKR | % | |
Income | 1,999,356,383 | 1,561,264,406 | 28.1% | 1,056,460,614 | 816,703,301 | 29.4% |
Interest Income | 1,875,780,611 | 1,473,943,663 | 27.3% | 985,586,499 | 770,572,044 | 27.9% |
Interest Expenses | (625,281,234) | (678,355,152) | -7.8% | (319,743,603) | (328,450,045) | -2.7% |
Net Interest Income | 1,250,499,377 | 795,588,511 | 57.2% | 665,842,896 | 442,121,999 | 50.6% |
Net Fee and Commission Income | 92,734,560 | 66,165,975 | 40.2% | 51,986,724 | 36,331,862 | 43.1% |
Other Operating Income | 30,841,212 | 21,154,768 | 45.8% | 18,887,391 | 9,799,396 | 92.7% |
Total Operating Income | 1,374,075,149 | 882,909,254 | 55.6% | 736,717,010 | 488,253,257 | 50.9% |
Impairment Charges for Loans and Other Losses | (181,525,760) | (134,675,509) | 34.8% | (91,031,356) | (53,915,221) | 68.8% |
Net Operating Income | 1,192,549,388 | 748,233,745 | 59.4% | 645,685,655 | 434,338,035 | 48.7% |
Operating Expenses | ||||||
Personnel Expenses | (354,896,186) | (263,599,907) | 34.6% | (192,904,180) | (129,939,686) | 48.5% |
Depreciation of Property, Plant and Equipment | (22,268,364) | (16,291,585) | 36.7% | (11,415,440) | (8,308,843) | 37.4% |
Amortisation of Right of Use Assets | (40,434,251) | (37,478,360) | 7.9% | (20,135,732) | (19,438,230) | 3.6% |
Amortisation of Intangible Assets | (128,366) | (337,677) | -62.0% | (48,594) | (154,639) | -68.6% |
Other Operating Expenses | (213,117,547) | (201,898,735) | 5.6% | (111,401,359) | (103,788,868) | 7.3% |
Operating Profit Before Tax on Financial Services | 561,704,675 | 228,627,481 | 145.7% | 309,780,350 | 172,707,771 | 86.3% |
Tax on Financial Services | (149,744,967) | (80,834,223) | 85.2% | (81,515,522) | (50,190,504) | 62.4% |
Profit Before Taxation | 411,959,707 | 147,793,258 | 178.7% | 228,264,829 | 122,517,267 | 86.3% |
Income Tax Expenses | (196,214,915) | (68,868,433) | 184.9% | (107,223,940) | (53,654,469) | 99.8% |
Profit for the Period | 215,744,793 | 78,924,825 | 173.4% | 121,040,889 | 68,862,798 | 75.8% |
Total Comprehensive Income/(Expenses) for the | ||||||
Period | 215,744,793 | 78,924,825 | 173.4% | 121,040,889 | 68,862,798 | 75.8% |
Basic/Diluted Earnings Per Share (Annualized) * | 2.88 | 1.06 | 172.1% | |||
- Calculated based on profit/(loss) for the period
2 | Sarvodaya Development Finance PLC Interim Financial Statements |
STATEMENT OF
FINANCIAL POSITION
As at | 30th Sept. 2024 | 31st March 2024 | Variance |
Un-audited | Audited | ||
LKR | LKR | % | |
Assets | |||
Cash and Cash Equivalents | 709,692,310 | 544,919,606 | 30.2% |
Financial Investments | 677,034,015 | 772,478,191 | -12.4% |
Other Financial Assets | 510,630,151 | 50,960,718 | >100% |
Financial Assets at Amortised Cost - Loans and Receivables | 9,456,316,408 | 6,958,212,710 | 35.9% |
Financial Assets at Amortised Cost - Lease Rentals Receivables | 5,984,836,512 | 5,616,318,355 | 6.6% |
Other Non Financial Assets | 203,631,541 | 238,195,920 | -14.5% |
Investment Property | 246,710,000 | 246,710,000 | 0.0% |
Property, Plant and Equipment | 229,686,880 | 224,485,283 | 2.3% |
Right-of-use Lease Assets | 180,878,533 | 185,152,504 | -2.3% |
Intangible Assets | 4,048,252 | 4,176,618 | -3.1% |
Deferred Tax Assets | 46,968,924 | 56,237,769 | -16.5% |
Total Assets | 18,250,433,524 | 14,897,847,674 | 22.5% |
Liabilities | |||
Due to Banks and Other Institutions | 4,772,603,078 | 3,005,408,260 | 58.8% |
Financial Liabilities at Amortised Cost - Due to Customers | 8,797,702,604 | 7,492,005,969 | 17.4% |
Lease Liabilities | 199,133,690 | 202,487,184 | -1.7% |
Other Non Financial Liabilities | 490,997,428 | 425,290,696 | 15.4% |
Current Tax Liabilities | 138,917,960 | 144,945,144 | -4.2% |
Post Employment Benefit Obligation | 64,615,614 | 56,992,064 | 13.4% |
Total Liabilities | 14,463,970,374 | 11,327,129,316 | 27.7% |
Shareholders' Funds | |||
Stated Capital | 2,696,113,032 | 2,696,113,032 | 0.0% |
Reserves | 194,927,853 | 194,927,853 | 0.0% |
Retained Earnings | 895,422,265 | 679,677,472 | 31.7% |
Total Shareholders' Funds | 3,786,463,150 | 3,570,718,357 | 6.0% |
Total Liabilities and Shareholders' Funds | 18,250,433,524 | 14,897,847,674 | 22.5% |
Commitments and Contingencies | 6,048,100 | 6,048,100 | 0.0% |
Net Assets Value per Share | 25.31 | 23.87 | 6.0% |
Certification
We certify that these Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
Mahesh Jayasanka | Nilantha Jayanetti |
Head of Strategic Planning/Acting Head of Finance | Chief Executive Officer |
The Board of Directors is responsible for the preparation and presentation of these Financial Statements.
Signed for and on behalf of the Board of Directors by;
Channa de Silva | Dhammika Ganegama |
Chairman | Senior Director |
30th October 2024
Colombo
Sarvodaya Development Finance PLC | Interim Financial Statements | 3 | |
STATEMENT OF
CHANGES IN EQUITY
For the Six Months Ended 30th September | Regulatory | |||||
Stated | Statutory | Revaluation | Loss | Retained | Total | |
Capital | Reserves | Reserves | Allowance | Earnings | Equity | |
LKR | LKR | LKR | ReserveLKR | LKR | LKR | |
Balances as at 01st April 2023 (Audited) | 2,696,113,032 | 125,933,259 | 56,514,761 | - | 570,926,666 | 3,449,487,718 |
Comprehensive Income for the Period | ||||||
Profit for the Period | - | - | - | - | 78,924,825 | 78,924,825 |
Other Comprehensive Income | - | - | - | - | - | - |
Total Comprehensive Income for the period | - | - | - | - | 78,924,825 | 78,924,825 |
Transactions with Equity Holders, Recognised Directly in Equity | ||||||
Transfer to Statutory Reserves Fund | - | - | - | - | - | - |
Transfer To Regulatory Loss Allowance Reserve | - | - | - | 29,067,350 | (29,067,350) | - |
Total transaction with equity holders | - | - | - | - | - | - |
Balances as at 30th Sep 2023 (Un-Audited) | 2,696,113,032 | 125,933,259 | 56,514,761 | 29,067,350 | 620,784,140 | 3,528,412,544 |
Balances as at 01st April 2024 (Audited) | 2,696,113,032 | 138,413,092 | 56,514,761 | - | 679,677,472 | 3,570,718,357 |
Comprehensive Income for the Period | ||||||
Profit for the Period | - | - | - | - | 215,744,793 | 215,744,793 |
Other Comprehensive Income | - | - | - | - | - | - |
Total Comprehensive Income for the period | - | - | - | - | 215,744,793 | 215,744,793 |
Transactions with Equity Holders, Recognised Directly in Equity | ||||||
Transfer to Statutory Reserves Fund | - | - | - | - | - | - |
Interim dividend | - | - | - | - | - | - |
Total transaction with equity holders | - | - | - | - | - | - |
Balances as at 30th Sep 2024 (Un-Audited) | 2,696,113,032 | 138,413,092 | 56,514,761 | - | 895,422,265 | 3,786,463,150 |
4 | Sarvodaya Development Finance PLC Interim Financial Statements |
STATEMENT OF
CASH FLOWS
For the Six Months Ended 30th September | 30th Sept. 2024 | 30th Sept. 2023 |
Un-audited | Un-audited | |
LKR | LKR | |
Cash Flows From / (Used in) Operating Activities | ||
Profit Before Income Tax Expense | 411,959,707 | 147,793,258 |
Adjustments for | ||
Impairment Charges for Loans and Other Losses | 181,525,760 | 134,675,509 |
Loss/(Profit) on Disposal of Property, Plant and Equipment | (282,875) | 7,685,893 |
(Profit)/Loss on ROU assets | (209,352) | - |
Provision for Defined Benefit Plans | 10,629,000 | 9,195,625 |
Depreciation of Property, Plant and Equipment | 22,268,364 | 16,291,585 |
Amortisation of Intangible Assets | 128,366 | 337,677 |
Amortisation of Right of Use Assets | 40,434,251 | 37,478,360 |
Interest Expenses on Lease Creditor | 16,122,193 | 10,017,837 |
Operating Profit before Working Capital Changes | 682,575,414 | 363,475,744 |
(Increase)/Decrease in Loans and Receivables | (2,520,394,384) | (370,042,760) |
(Increase)/Decrease in Lease Rentals Receivable | (527,543,877) | (544,891,511) |
(Increase)/Decrease in Other Financial Assets | (459,669,434) | (51,953) |
(Increase)/Decrease in Other Non Financial Assets | 34,564,379 | (29,749,484) |
Increase/(Decrease) in Amounts Due to Customers | 1,305,696,635 | 632,977,084 |
Increase/(Decrease) in Other Non Financial Liabilities | 65,951,948 | 103,331,380 |
Cash Generated from/(Used in) Operations | (1,418,819,320) | 155,048,499 |
Retirement Benefit Liabilities Paid | (3,005,450) | (7,477,542) |
Net Collection of LRAB Fund | (245,216) | - |
Income Tax Paid | (192,973,253) | (34,705,088) |
Repayment of Lease Liabilities | (55,635,965) | (65,794,482) |
Net Cash Flow from/(Used in) Operating Activities | (1,670,679,204) | 47,071,387 |
Cash Flows from / (Used in) Investing Activities | ||
Sales of Property, Plant and Equipment | 330,400 | 8,224,700 |
Acquisition of Property, Plant and Equipment | (27,517,487) | (44,070,219) |
Financial Investments | 95,444,176 | (58,164,751) |
Net Cash Flows from/(Used in) Investing Activities | 68,257,090 | (94,010,270) |
Cash Flows from / (Used in) Financing Activities | ||
Funds Received from Bank and Other Institutional Borrowings | 2,632,673,426 | 105,450,000 |
Repayment of Bank and Other Institutional Borrowings | (738,025,444) | (398,866,465) |
Net Cash Flows from/(Used in) Financing Activities | 1,894,647,982 | (293,416,465) |
Net Increase in Cash and Cash Equivalents | 292,225,868 | (340,355,348) |
Cash and Cash Equivalents at the beginning of the period | 80,336,436 | 579,671,138 |
Cash and Cash Equivalents at the end of the period* | 372,562,304 | 239,315,790 |
*Cash and Cash Equivalents at the end of the period | ||
Favorable Cash and Cash Equivalents | 709,692,310 | 464,498,898 |
Unfavorable Cash and Cash Equivalents | (337,130,007) | (225,183,108) |
Total Cash and Cash Equivalents at the end of the period | 372,562,304 | 239,315,790 |
Sarvodaya Development Finance PLC | Interim Financial Statements | 5 | |
NOTES TO THE INTERIM
FINANCIAL STATEMENTS
1. ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS
Financial Instruments are measured on an ongoing basis either at fair value or at amortised cost. The summary of Significant Accounting Policies describes how each category of Financial Instruments are measured and how income and expenses, including fair value gains and losses, are recognised. The following table provides a reconciliation between line items in the Statement of Financial Position and categories of Financial Instruments.
Analysis of Financial Instruments by Measurement Basis | ||
30th Sept. 2024 | ||
Amortised Cost | Total | |
LKR | LKR | |
Financial Assets | ||
Cash and Cash Equivalents | 709,692,310 | 709,692,310 |
Financial Investments | 677,034,015 | 677,034,015 |
Other Financial Assets | 510,630,151 | 510,630,151 |
Financial Assets at Amortised Cost - Loans and Receivables | 9,456,316,408 | 9,456,316,408 |
Financial Assets at Amortised Cost - Lease Rentals Receivables | 5,984,836,512 | 5,984,836,512 |
Total Financial Assets | 17,338,509,397 | 17,338,509,397 |
Financial Liabilities | ||
Due to Banks and Other Institutions | 4,772,603,078 | 4,772,603,078 |
Financial Liabilities at Amortised Cost - Due to Customers | 8,797,702,604 | 8,797,702,604 |
Lease Liabilities | 199,133,690 | 199,133,690 |
Total Financial Liabilities | 13,769,439,372 | 13,769,439,372 |
31st March 2024 | ||
Amortised Cost | Total | |
LKR | LKR | |
Financial Assets | ||
Cash and Cash Equivalents | 544,919,606 | 544,919,606 |
Financial Investments | 772,478,191 | 772,478,191 |
Other Financial Assets | 50,960,718 | 50,960,718 |
Financial Assets at Amortised Cost - Loans and Receivables | 6,958,212,710 | 6,958,212,710 |
Financial Assets at Amortised Cost - Lease Rentals Receivables | 5,616,318,355 | 5,616,318,355 |
Total Financial Assets | 13,942,889,580 | 13,942,889,580 |
Financial Liabilities | ||
Due to Banks and Other Institutions | 3,005,408,260 | 3,005,408,260 |
Financial Liabilities at Amortised Cost - Due to Customers | 7,492,005,969 | 7,492,005,969 |
Lease Liabilities | 202,487,184 | 202,487,184 |
Total Financial Liabilities | 10,699,901,412 | 10,699,901,412 |
6 | Sarvodaya Development Finance PLC Interim Financial Statements |
NOTES TO THE INTERIM
FINANCIAL STATEMENTS
2. FAIR VALUE MEASUREMENT HIERARCHY | ||||
30th Sept. 2024 | Fair Value | |||
Level 1 | Level 2 | Level 3 | Total | |
LKR | LKR | LKR | LKR | |
Non Financial Assets - Investment Property | ||||
Land and building | - | - | 246,710,000 | 246,710,000 |
- | - | 246,710,000 | 246,710,000 | |
Non Financial Assets - Property, Plant and Equipment | ||||
Land | - | - | 36,100,000 | 36,100,000 |
- | - | 36,100,000 | 36,100,000 |
31st March 2024 | Fair Value | |||
Level 1 | Level 2 | Level 3 | Total | |
LKR | LKR | LKR | LKR | |
Non Financial Assets - Investment Property | ||||
Land and building | - | - | 246,710,000 | 246,710,000 |
- | - | 246,710,000 | 246,710,000 | |
Non Financial Assets - Property, Plant and Equipment | ||||
Land | - | - | 36,100,000 | 36,100,000 |
- | - | 36,100,000 | 36,100,000 |
Sarvodaya Development Finance PLC | Interim Financial Statements | 7 | |
NOTES TO THE INTERIM
FINANCIAL STATEMENTS
3. FINANCIAL REPORTING BY SEGMENT
For management purposes, the Company is organised into business units based on its products and services and has three reportable segments, as follows:
Lease
This segment includes Leasing products offered to the customers.
Loan
This segment includes SME, Micro, Personal and Gold loans offered to the customers.
Other Business
This segment includes all other business activities that the Company engaged other than above segments.
The Management Committee monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Also, the Company's financing (including finance costs and finance income) and income taxes are managed on a Company basis and are not allocated to operating segments.
Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.
Period ended 30th Sept. | Lease | Loan | Other | Total | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
LKR | LKR | LKR | LKR | LKR | LKR | LKR | LKR | |
Interest Income | 806,831,311 | 662,929,935 | 1,017,243,503 | 707,187,577 | 51,705,797 | 103,826,150 | 1,875,780,611 | 1,473,943,663 |
Net Fee and Commission Income | 63,484,527 | 27,470,319 | 26,860,036 | 29,136,446 | 2,389,997 | 9,559,210 | 92,734,560 | 66,165,975 |
Other Operating Income | 19,049,062 | 8,782,886 | 104,254 | 9,315,585 | 11,687,896 | 3,056,297 | 30,841,212 | 21,154,768 |
Gross Income | 889,364,900 | 699,183,140 | 1,044,207,792 | 745,639,608 | 65,783,690 | 116,441,657 | 1,999,356,383 | 1,561,264,406 |
Interest Expenses | (278,141,099) | (281,634,666) | (326,566,860) | (298,716,344) | (20,573,274) | (98,004,141) | (625,281,234) | (678,355,152) |
Total Operating Income | 611,223,801 | 417,548,474 | 717,640,932 | 446,923,264 | 45,210,416 | 18,437,516 | 1,374,075,149 | 882,909,254 |
Credit Loss Expenses | (162,200,392) | (95,432,641) | (19,325,368) | (40,232,868) | - | 990,000 | (181,525,760) | (134,675,509) |
Net Operating Income | 449,023,408 | 322,115,833 | 698,315,564 | 406,690,396 | 45,210,416 | 19,427,516 | 1,192,549,388 | 748,233,745 |
Other Expenses | (252,667,049) | (208,822,414) | (296,657,650) | (221,487,890) | (18,689,034) | (72,666,698) | (568,013,733) | (502,977,002) |
Depreciation and Amortisation | (27,948,828) | (6,904,019) | (32,814,860) | (7,322,760) | (2,067,292) | (2,402,483) | (62,830,980) | (16,629,262) |
Segment Result | 168,407,531 | 106,389,400 | 368,843,054 | 177,879,745 | 24,454,090 | (55,641,664) | 561,704,675 | 228,627,481 |
Tax on Financial Services | (149,744,967) | (80,834,223) | ||||||
Income Tax Expenses | (196,214,915) | (68,868,433) | ||||||
Profit Attributable to | ||||||||
Shareholders | 215,744,793 | 78,924,825 | ||||||
As at 30th Sept. 2024 | ||||||||
Segment Assets | 5,984,836,512 | 5,124,321,233 | 9,456,316,406 | 5,435,121,061 | 2,809,280,606 | 1,783,177,855 | 18,250,433,524 | 12,342,620,149 |
Total Assets | 5,984,836,512 | 5,124,321,233 | 9,456,316,406 | 5,435,121,061 | 2,809,280,606 | 1,783,177,855 | 18,250,433,524 | 12,342,620,149 |
Segment Liabilities | 4,743,147,492 | 3,659,420,013 | 7,494,390,759 | 3,881,370,796 | 2,226,432,123 | 1,273,416,797 | 14,463,970,374 | 8,814,207,605 |
Total Liabilities | 4,743,147,492 | 3,659,420,013 | 7,494,390,759 | 3,881,370,796 | 2,226,432,123 | 1,273,416,797 | 14,463,970,374 | 8,814,207,605 |
8 | Sarvodaya Development Finance PLC Interim Financial Statements |
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