Audited Financial Statements for the year ended 31st March 2025

SOFTLOG Ifi Ft NANCE PLC

31 ?›1ARCI I 2(t25

EY

ñmet B Yowng Tel. + 94 I } 2zI6 3500 Chartered Acou«Iants Fa• +@ t t 768 7869 Petula fowrs Emzi4: eysl'6A.ey ggm

C6ombo 02. Sri mans

PNS/hMW/Kfd/DW

INDEPENDENT AUoIY0R"S fiEP0fiY

TO THE SNAfIEHOLDERS OF SOFTLOGIC FINANCE PLC

Report on The Audlt of The Financial Statements

We have audited the ffnanclal statements of Sofilogic F fnance PLC(the CompanyJ, which comprise the statement ef financial position as at 31 March Z025, and the income statement, statement of comprehensive Tncome, statement of changes in equfty and sfatement of cash flows for the year then ended, and ndes to the financial statements, including material accounting policy information.

In our opinion, tte accompanying financial statements glue a true and fair view of the financial position of the Company as at 31 Ivlerch 2025, and of its financial performance and Its cash flows for the year then ended in accordance with Sri Lanke Accounflng Standards.

We conducted our audit in accordance with Sri Lanka Auditing Standards (SLAuSsJ. Our responsibilities under those standards are further described in the Aud/tor"s responsibilities for the audit at fhe financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics for Professional Accountants issued by CA Srl Lanl‹a (Code of EthTcsJ and we have fulfilled our ofher ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basls for our opinion.

We draw attention to nDte 40.5 to the financial statements which describes tote status of compliance with regulatory capital requirements of the company as at the date oi our audit opinion.Our opinion Is not modlried Tn respect of this matter.

xey audit matters

Eey audit matefs are those mallers that, in our professional judgment, were of most significance in the audit of the financial statements of the current perlod. These matters were addressed in the context of the audlt of the flnaoclal statements as a 'whole, and In forming the auditor's opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the malter is yrovlded in that context.

Ne have fulfiMed the responsibilities described In the Auditor's responsibilities for the audit of fhe financial statements section of our report, including In relation to these matters. Accordingly, our audi! Included the performance oi procedures designed to respond to our assessment of the risks of material misstatement of the financial statemenfs. The results of our audTt procedures, Including the procedures performed to address the matters below, provide The basis for our audit opinion on the accompanying Pnancial statements.

fContd...2/)

Shape the IJttaa

whh confidence

LCantd...3/a

-2-

Other Information Included Tn The Company's ZO25 Annual Report

Other informaIon consists of the information included in the Annual Peport, other than the financial statements and our audltor's report thereon. Management is responsible for the other Information. The Annual report is expected to be made available to us after the date of thfs auditor's report.

Our opinion or the flnanclal statements does not cover the other information and we do not express

any form of assurance conclusion thereon.

In connection wlth our audit of the financial saements, our responsfbillty is to read fhe other Information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our ttnowiedge obtained in the audit or otherwise appears to be materially mlsstated.

P•sponslbiitles of management and those charged with governance for the finanstatements

Management Is responsible for The preparati0n Of financial statements that give a true and fair view in accordance with Srl Lanka Accounting Standards, and for such Internal control as managemonf determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements. management is responsible for assessir9 Fhe Company's abi|iLy to continue a‹ a going Eoncem, disclasfng, as applicable, matters related to going concern and using the goTng concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responslble for overseeing the Company's financial reporting

process.

Auditor’s responxlbllliles for ltte audll of the financial statements

Our objectives are to obtaTn reasonable assurance about whether the finandal statements as a whole are iree mom material mlsstaiernent, whether due o fraud or error, and to Issue an auditor's report that includes our op1nion. Reasonable assurance is a high Ieve| of assurance, but Is not a guarantee that an audit ‹onducted In accordance with SLAuSs will always detect a material misstatement vrhen It exists. Misstatements can arise from fraud or error and are considered material If, individually oF in The aggregate, they could reasonably de expected to Influence the economic decisions of users taken on the basls of these financial statements.

As part of an audlt In accordance with SLAuSs, we exercise professional judgment and maintain professional s‹eptlcism thr0uehout the audlt. ¥¥e also:

• Identify and assess tne risks of material mlsstatement of ihe financial statements, whether due to fraud or error, deslqn and perform audit procedures responslve to those rlsks, and obtain audlt evidence that Is sufflcfent and appropriate to provide a basis for our opinion. The rlsk of not detecting a materlaJ misstatement result Ing from fraud 1s higher than for one resulting !rom error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

  + Obtain an understanding of internal control relevant to the audit in order o design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal covers.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going cancers basls of accouniTng and, based on the audlt evldence obtalned, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Cempany's ability te continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention In our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Ovr conclusions are based on the audif evidence obtained up to fhe date of our auditor's reporL, However, future events or cDnditions may cavse the Company to cease to continue as a going concern.

  £Contd...S/J

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether The financial statements represent the underlying transactions and events In a manner that achieves fair presentation.

We communlcale with those charged with governance regarding, among other matters, the planned scope and timing of the audit and sTgnTflcant audit f1ndings, indudlng any significant deficiencies in internal control that we identify during our audit.

We also provide those charged wlth governance wlth a statement that *e have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and Other maNers that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

Fr0m the matters communicated with those charged with governance, we determine those matters that were of most significance Tn the audit of the financial statements Of the current period and are therefore the key audit matters. e describe these matters In our auditor's report unless taw or regulation precludes public disclosure about the maLter or when, in extremely rare circumstances, we determine that a matter should not be communicated In our report because the adverse consequences of doing so vrould reasonably be apected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

As required by section 163 (2J of the Companies Act No. 07 of Z007, we have o0talned all the information and explanations that were required ior the audit and as far as appears from our examination, proper accounLlng rnords have been l‹ept by the Company.

CA Sri Lanha rn•.mbership number of the engagement partner responsible for signing this independent auditor's report 1s 2965,

07 August 2025

ie Finance PLC

INCOME STATEMENT

Year ended 31 Mush *02s

2025 202a

Interest income

Less: Inlcrmt expenses Nét Interest mcnai*

T,133,204,770 2,575.898,810

     f8S3,646.073)    (2.781.033,747}

209,558.698 (205,34.937)

6 SS.4g0W1

70J58.794

Personnel fixgenses Order opwting ex or

7 J2],738,937          

426.06Bfi 12 (641,151.IDA) (298,4t2,168) (166,686',fi72)

10 (549,399, I89) t704,6S2,014)

The Accounting polities and New to be Financial 5iatcmoits from psges I I to 79 form on integral psi of iiicsc Fiwvi«i

Year ended 3 I Mar h ?uJs

2O75

Ri.

*02¥

Other compmhensiv‹ iocem6 expeosesy

Actuarial eeiiVi loss} on defined brncfi: plan

Other compreiiiosive lnceme / ('ix pcacis} for ibe s'ear, net of tsz

fi2.3

$7?.528

J30.77II

330.770

IS80,O57l

l406,04iiJ

Sottlo ic Finance PLC

TAnuENT oF re

ITION

As at ) 1 l'darch 202s

Offer sssets

Equity I nutt•ms •t £zfr vNUo t8rou;th viler compzeWsive inceme.

hone i W«fit é6I aw Terel Lâbill‹iea

Nen-Disrioutabie iainry As mls.ance Rescue

Retfi*ed earnings

TeislLlsbIlMWGndEqxih'

HP of Finance

t6 291.I;'9.5s4 3334 61

I7.2 - 37B4$Ag 77

IB 80l.8 14.76J 601.494,798

T9 Ig.#^i3,S93 20+I9£433

zo i,eJoyz‹,n• i,w,opa u

21 I.40J,799,M0 2.453,870,539

Z2 I.485,5t4,981 3.998,s39,625

23 I,zI8.6?9,050 T.3g5,4g8,#90

24 30,600 30,600

25.3 J3,I I2,48t 34,257,042

35:S 7T,Y86,20J 71,sJ4,222

76 T03,237.

27 17gA7S.W4

zi sz7.Psi.o7 i            

7.9¥4.249.47 I I T.250.&Z8,3T3

?R

3.JN,M1 57.883,s92 6g4,39I,TS8 'JOS?7t,743

84,S27,809 34+504,€OT

SJJ47,887,y62 d0I,9yB298

33

34 2eJ.703.3^i3 2fr0,448,732

36 970.Q%987 T,736437,92 T

&,233/Zg,93T}    t9.t37.P04,469)

A93XC62.209 3.7gg,g99.0t 5

7,982,249.477 I I,z90,8J&3T$

3.0* 2.9e

Softlogie Finance PLC STATEMENT OF CASH FLOWS

'Yeat mded Z T kforck*025

l0G774M

20Z4

tin rcese hi ri»u›ciif Nett it.Ameiiz**f Cea fecierifig rrociviblcs

  ]9D.73l,7]$  ’50S4  .7!7 

*J3,914,ñ] 1.7TL7#7mO

1.649.97li67 ’lgJJ1t•94$

Z2.T

29.1

zs.i

fiofilo5ic Finance PLC                                                                                                     HO'FES TO THE FINANCIAL S fA f EMENTS

Year ende'd 2 1 Mirch *025

1. CORPORATE INFORMATI OFt I.I

SoRlogie Flaitce PLC ("The Company“‘l. is a pub1ic 1irztited Tiabili Company incr @{ed and domtCileé in Sti Lzitka under the Companies Act No. T3 of T982. The Company was rmreg›sterod w1h the Registrar Gencml of Companies as per the requirements at the Com ies Act 4o.2 of 2007 uid it is a Licemed Firiazice Company ixider the Finance Business Act No.42 of 20a arid amendmand bas listod in Ihe Coiomb» Sid Wehange on 22 January 2009. The registered office of the Company is locaicd ai No. 13, Oe Fonseka PJme,. Coternbe 04.

I.2 Prln4ipgl A¥tisifiea end Ngtlre.of Ope+stlons

Tfie Mmpany plrgvldes a comprehensive range oF financial services encomjassing .accepting deposits, providing finance lease, hñc purchase, vehicle loan I ciliiirnongage loaus, g91d loan, debt lecturing, revolving loans and busincss/per5onal laans.

Pe rent 2 ntcrprlsi an9 U him etc f•0rcnt Enterprise

The Company's parenl undcnaking /uIrimxte puent and we controlling party is. Softlogic Mpilal PLC (fomerIy known as Capitn1 Holdings Lid). in the opinion of che Dircciois, the company's u1timate pareztt undertsI‹ing and cancelling pany is Softtogis Ho1rtinrsPLC, which is i rgora& 1 Bri Lanka.

Year ended;3l March 202S

2.1

13

J.6

BA$I6 OF PRS,PARATION

The prinripd accouning.poTiciés.adopted'in ihc atian o£ Iltcsc annual financial sloteittents' ere note4 below.

be Financial Sletements ofhe Company, whiclt crenprlse Statement ofFiaaiciaJ Posifion, Jocootc Statement. G iemmt of Comprehensive Income Statomeat of Oiangin EqutrY, Siae›oeot o£Cas6 Flows and Notes to the Financial Statemeaa hsve been pregxe4 in accardancc wifi Sci Laake Accounting Sltaadards(SLFR5s &. LKASS) did down br the inuitut+ of ChertsrAllaah of Sri I •nt^ aad 1 campliano* with 1hc requirements ñf the 'Companies Aci No. 7 of 2007. The presentation of lh°*r Fini *tint Stitrments is also in compliac< with the rtqu mncots of Finance Business Act No 42 of20T I, Li•ti•g 9ales o£the Colsmb0 9‹od‹ 6xcbaage arid ibe CBSL guideliit<>

RespoodbJlitj/ for Flaaociel Stctemeols

Tbe Boed of Directars is resgonsibk for ihe preqaraiion W grg6entgzi9rT 9f the F uM Slatcmcats as per Sri Laala Accocnd g Standards (SLFRS/ LXAG) and the provisioua of fie Corupani•s Am Xo.7 o£2007.

Tfie Fiuanmal Statements of ihe Company as at and for the yeBr ended 3T MBzch 2025 were Buthorised for issue by the Board oFDirectors in eccordeuce '•i0i w usoution o£lhe Directors oo Of august 2023.

The Fintnciel Suteménis of'the Company heve been piép'and on a' historical eiist basis, 'except foi tte following iiems in dte'Stcternmt o£f''irianciBl Porific.

• FmacsiaT /ssets at Fair value ttuougb other comprehensive income at Fdr value 04ote 24J

• Freehold land,'which is mmred a cost at die fime of acquisition subsequently, mmsured at devalued amounts, srhicfi ez Oie fair'values at rhe date ofzevaluafion (Wote 23)

• Liabilities for defined benefit obligations are recognized at the present value of IIie defimed benefit obtigsfion less ihc Weir vafee oflhe plgg g$5ets Baie 32)

The Firienciel.Stntcmcms riFMe Compuiy ârc presented in Sri Lankan Rupees fRs.), wGitB is lie -ncy of the primary :econoinJc eniltonrnent In wbich Softlogic Finnnoi PLC operstci The Fiit*nii•t mfomsstion pr seutol' io 8ri Lanksn Rupees Is s 6ecn rounded a the nearest rupee tm]ess lndkatcd otl›eru'›sc. There*as

The saetr' oud !i9hi4i1§ey''gf the Company.pr•soF Filtucial f'osiuon are grouge4 by nature erd listod in en order'rllat reftgcU their relative liquidity and o›aturiry panam. No'adjustroenIs'beve &wi make for infletioaary factors effecting Ae FinwcwT Sts moxs. An ana1ysis on recovery oz sett1aztent within t2'months.aficr tke reponiug dire (current) and more.then I2 mreic£s after the reporting date tnon-curzent) is jzresenicd in theNote 47.

Softlogic Finance PLC                                                                                NOTES T.O TBE FINANCE AL .STA £EM?N-I-S

Year'ended j 1 March 2025

1.7

2:8

2.9

!n com@iancc witfi Sri Laitte:AccâMting Standard - LxAS 01(F'fasantat or of Financial Satemcnts), back meterisl class of similar items is presented separately io the Francia) Statemeks'. Items of dis'similu natu'@ or functions too arc p'resented s@atately, urtléss zbcy are!ioaoaterizl.

Tbe comparativa inforoidioa ice lassificd whewur ncses›ary to confernt tg Ihe cuzrem y-'sclassihcMiac

in order to provide a bmer przscatation.

Tfie cash how naiement tas been prepared by usin8 ttie indirect method. in. acmrd rice with Ore Sri Lanfa Accouit mg Sianded - LKAS 7 fSacnicts‹ 'of. Flows), whereby ogeruling, inwstiag md €maacyaT actñiilic› have been 4epfalc ly vogue.•d. Cadt end la&i cquiiaicnls comprise..of sUori lcrt•.'highly liquid

Ccsb ard casb .equivalents ir+elude cash in lané. balances w% h•nI‹•, p1ac*mcofs wUh banks {lsss dian 03 otonths)i net of cnFavourablc bank babases .and sccuriils purchased under wg? kas• agreement (leso fian thre'e rncntbs).

2.10 f2vebts Afier tbe Reporting Date

Evenis aficr the wporñeg period are Ifase events, &vourable arid un€avoureb1e, Ibet our between ihc

reporting dato wd &o dato *lico tbc FizjaucaT Statements are authorial for iasuc.

filo'circcmstances hase arts n since Itie repeating date; wbich a'oud uire acljustrnenfs to, or discTosnre in the fin'uciaI'statemeuB', otTter than Puae disclosed izt Note 43 to the Financial Statements

3.II

The Cnnpany has rep.orted a no interim income. of W 299,5â8i698. :a nei opstcting income ot Rs. l,l02i875.868 (2024: (705J98,546)) and a net profn'of Rs. 145, I32fi24 (2024.(1.776,737,232))during the year ended 31 Mwtlt 202J. Accamulatnd k›sses of tie Company amounted to Rs. 8.233.5â4;931 {2024:

Debits a decline in 1ntcrsrt i«ammprlmartly due to reguiatary leading caps .excluding gold ›w

as of 3 I Match 2025. This s gic mdiictien 1‹:it to a dccmasc in iniertst axpensei by Rs. 1,94’?,387,67.4,

contributing'to e positive net irtirest income'of Rx. 299,558,698 lot die year ended 31 March 2025:

HOTEB TO 1 I-t£ FINANCIAL STAT?MEMTS

Ye+r mded 3I March 2025

Tbs wansf‘er of ifie beneficial ownership ufa pert.of the loan portfolio of rhe company to thr SPV boosted the Company's.core.capilal and tfie capital adcqual ratios during the. year {Pkass wf«r notc 40.5}

Funfier, Ote caznpmy echievod a noteblo reducrio• in opcrotiog cxpmses; whish dccrzasod Io Rs. 847.8) I;357 in FY 2025' fiam ks. I.07t,338,68d io FY'2024, steakiog:a decrease of Its. 223,527.329 companxl to ihe

Thu' imFraveaeot reflects tbe cdzapaay's pntdent exPecse management'sub disciy}inéd cart wt  n•h*•*•'• hrou@aut the financial year. As Pat of the carcectiye measures coñir«unicetcd to shareholders at itte Exoaordiuary Gwieml Mcefing'{fiGkT}, ifie'company. sltategically downsized its brauch networlt—horo 30 ‹a l4.bra«hes. bring tfie financial year adod 3I March 2024, and Airthet to s branches by. 3.J March 20.U: This rattl9naTizarinnwas aimed.at retaining key.delis chgzmW critical to supporting portfolio growth once.

MW mz4, era iurtlia to 243 by i i Maicn 2025. Aitlu›ugb ts» raduciion ainng the year was margiaâ, persanueT costs decreased by Rs. 68,274,504, This was znsinly art ee by fee realigiuncnt of respoosliJities amocg existing 6tafl“ aad the selective rep meoc of Yacatad positions bued on ogcraLioua1

A de@k4 ssrfta‹ hu 6••n razried out'by ñte direciârs based on uhtch conoctiw mazes has.e been

Funher éetsils wilb regBcd to Ibe traosferofibe benefici | ownership ofa pan ofdte cornjnny*s loan pmfolio is •    tn nolo 43.2..

The Campany is mitia g ^•• s - a=*^^* !^'•in•••'=odeT, inxol g a r<>n of the produst mix, amphas zlog a finaa!-•• and gold loaa drixeppreacL notably thee will be a dc4iberale. diseantizuation oF other loan products, wilh dte exception of vehicle loaos and loats against d«posia'. this intenional shifl in tbe.busine'ss model is designed la improve the risk weighted asseta gositjon, fi+ciIitating gradual zaprovemanu in lfie capital raTos. ncr interest mazgin, aod assrt's" guetiry.

to continue 8s a geing cencem end ts satisfied that it free the resources to continuo ie bu$iztess for the for+sefñti«e. Fwt erzawe, the Bond of Directors is nd ewere of any maeriaf uncer zloties tbat m8y cast sigriFzcant doubt upon the ability of the Eooigany to continue as a going concern.

- t4-

Yesr ef›'de'd â I Msrcli 2025

Tfie q'rejamtion ofWwcie} Gteteoicnts oNhe Company.in confonnity with Sn Lanka Accountin'g Standards

-WQfl P’ M @*Q & W 0§g & .BB *.*Wd 1 I I BE /I* 8 A

aecbuutuig gohcies mid rhe regoned amouno of!zieornc, expcnses,assets and IiebiIiies end the accomgoty ng discloaues os we!J 'as Ote discIasu're of contingent liabilities. Uncertainly a¥out three assumptions au'd estimated 'oouid resuli in ovtcom'm that reqa ire .a material adjtlslmcnt. to the carryirtg amount of insets:or

in fixture j>erjods. In rhe process of applying. the Company's accounting policies,

management has made the folk›wingju0gsmets md assuasgtioos coocmminB Lhu fulurc:end othct keY sourcre ofuncetta my at.ibc rtpoxin$ dBte, set has s.significant.nsk ofseusing a material a4jusont it fa tbe cerr7oig un4uots of assets atid fiebiliucs. with io ••xt fir mc›BI year. Existing mzcuoistsnces sn4 assumyiions about'futurc developments oiey cIIengc'dus t• ciwmstsnces' beyon'd Company's coatrbl and are

ong'oirg basis. Reviaiotls.to act't›u tmg 'estimates.

are recognised in tbe pcriéd in which tbe estimate Is Revised end in any future periods affected.

T'he most significant areas af”esttmatiw uncertainty a«d cricical judgements ia applying.accpolicies sha hevc ntost significant cfFcct oo tbs amounts recognised in the. Financial Statements ofrhc Coiopeoy arc as

The meesureroent of impairment losses un'der SLFRS 9 across all cacgorics of finaiwial ¥sseu reqjires judgeroenr, ei particular. the cctmaiion of Ihe atooiznt aad inning of ñiture cash flows and collateral values when dc1srminiag impairment Tm end the *sohm szgoifi I wcrcw< in credit risk. Tltese. estimates driym bY a number of fact.on, changes in which m Tcsult za diJT•tmt lcyof.91Ibwan e

Tfie Compauy'ceviewa its individiatlly'signiI2c«nt1oans end advuices st caeh finenciel repoxm'g dete'to essess Whether an impaimieirt losx stould be rrcor4od in the income stat•mnni.

is required in tte ertimstiou oftfie amount end timoig oF Fuaire maL flows when aetcrmvnng lhe unpBirmenr loss. The'se estânarcs were based dn xssiuoptions about a number of factors 'and annual results roay differ. resulting in kinJrc claages to tbe allowance.

Loans and ad aucn diai has been assessed individually. and feund nor ie be impaired md ml iudi-vidaally inxignifzini toms and advanms arc then w'  8 eolle'ctively by cangennngthwn,.mtogroups of ass•ts with

•imiI•r ruk characteristics, to determine ttte wqxwéit loss oa sucb loaos and zdvan'ces:

We Company's etgcte‹lit loss {ECL) @kaI•rions:«re ou f• of c‹x«pIex ou›deIs wiih a numbs of inns âg assumptions regarding the'choia of vxrieble inpco attd Oieir iadepcndcnete the elements orlhe ECL mokls that are considered acnñnñrtg judgementms d mtimaos include.

• The Company’s *ntena for tsscssing'if ties has t›eeo a significant increase in erm:t risk and so allo ces for fnanoial assen should bt nioasar»d on s lifetime expecad credit lost tLTf'sCL) basis •nd the qualit hve

• Th'e segmension of £nmeial assm when tiv•ir ECL is assessed on a ‹xillective tu•dz-

• Development of ERLs, rriodels, inelHdtno lfie various:formulas. and the.choice of iripim Detemiination,of assodszions bet•'emasroeoonant< scmañas Bnd: cconaatic input such as eeroplujmtem levols aad

  default {LCiDs). ”

• Selection D forward - feeling n aoocconom< xconanos cad thou probability weightaiy to derive the

‹ is the C‹xnpanjr's poiiy jo reguTuJy reviw its'modelsin the:context of actual loss experience and a4just whenever necessary. Tke above assumptions Bnd judgrmens sre discussed ]e daiall under Note 3.J.9 to the Financial:Saezoents.

NOTES TO THE FINANCIAL STATEMENTS.

Tfie determination of fair value of financial assets and financial liabilities r•cerd•d ou the Matemcnt of Fznaimal Passion for whisli there is no observable oterkat pncc are actcrmiocd using s vat ety of vaI‹ ation techniques rhet include rhe use of madiematiczl models. Th'e valuafioa oFfiaa«ciaI insmintent is desm&d in Note 38 to the Financiâl Srstements. T6e Ceaipany measum air velue nsing the' fat' value hienu 'h cal

markets cnated by tne COVID — l9.°pandemice. The (hir Velur hieñvsliy is:alsogimn in .Nett S8 to the

Tile Company's aooountaig policies y'rbvide scope For sssets end Jiabilifies' to be eT¥ssifie4,'at Inception in to difTerebt Accounting cauzgoiies The ckucifitarion of Mañcial ittso-uoieats is given in Note 38 'Analysts of Financial 1tiazuifim›s by Measurement Bssis". Wie'COVID-t9 paodoriic has resulted in sfg«ifican voTaMtry at the £raarcial roaJ:cms. However. Ihe Company di4 not require o reclasslFy any ef its fi«anciat assots as a msvTr ofth• figofkuit volatility created bT the pandemic. The =+• •'8°• '••o£ Scandal i«soumis..giv•n in?Jou J.8 “Ana1yrn o€Fm8nc!& Insdurnci!ts bY Measuremoot Basis*.

Tazetion

Tfie Company zs subject to incom o ma jydgmeoi is required to deiermiriu the m61 provision for current. de£erzsd and other raxes due to the uncmaiziries. ihai exist wiib respect to die interpretation ot tic apglicabk. tax laws. at rhc time of preparation gf these:Fimci•J S •nis.

The dceils of dvfu›x computation is given ia wot« 3 .to tha Financial Steierncnts.

2Jl5

i1l7

Tfie cost oF Defined Benefit Pensioa T'tan is dctenzime4 using actuarial valuations. An actuarial vBluafic+i Evolve••k'^•variow:amunptioas wkiclt «ay difTfioro steal â•vmIaga•no in 8tc fits. Thlchdc Ibe c rteiuiinstiori o€tfie discount r•te, f'uturc safuy dicreaees andzoonafity r•tcs. Oue. Al the complexity o£lfrc vaI«ari‹o, tfic uodcrlyirg assuraprions end its.long-term nature; a.dc£utod bobli it. htghly sâesiti e to changes In tbcsc as'snatptions. AM assumptions arv aviewad at each reporting dale.

In detectaiziing the eppropnme discount zae, mxaagemetconsiders the inte est rites ofsñ Latika Govcmm'ent boñds with extrapolates mâturtnes corresponding Io the expemed duration of ihe defimcd bisicfit obligation. The moitallty mte is tasea art publJely avaibbk mortality tssTs. F« • sabq' incrczzes arc based on exgecled fucoro inflation retes W'mgected fulurc salcnr incrcascJatc for rhc.Camja•y-'The seasirivily oFassumptions. used in rctuerial vahietions sre set out ñt Mots'32 to tfie Fiosncist S • ••-*-

T'‘8fr vakre of Property, plant A Eqkipaient

The Company fe'riws the residual values, usefttl lives acd.meIho4s oF depreciation and amortization o£ pcope/, plenL equipment uu4 izttang ble assets at each r+poning data. The;a'dg'r apt of the stenegemwt is' exercised in tfie esrimstiân' oFtheâe v&ues, rAtes, mAlnce they nre s bject tb uzieertainly.

NOTES ’1’O THE FINANCIAL STATEMENTS

. Vear ended 31 March 2023

Tiabilirjev'are not recoguiM in the Statement of' Finânmal Position bul ere disrlosod unless they are remote. Details o£ ñonuoim •nr• cmd coriiIngen*k i 6e gim n Note'42 to the Fiiandid Sta nnens.

3. GENERALACCGUNT1 G OLICI S

In these fioencial statcmcats, tIe Company ha's'"'aypTéd Sn I .n    . Acñng. Standard — Ammdmeits to

LKAS 39, SLFRS 7i SLFRS 4 and SLFRS 16 - Interest M Be•cbm Rnfn.mi Phitse

SLFRS I6: Leases: Com a-19-RRent Com2o0-I •nd Am•o4m•nu.to.SLFR99.

effective me+itioried:ia Noe4 ro the Financial Statement

Amendments.To SLFBS T6 Lcasca:.COVlD-19-ReIstRan Co b30 7vn< 2021

1s 4 December 2tf20, tire lnsñtufe of Chr md Ac'countina ef firi Liu ;a (CA Err Lanka-) issued Covid- 19-

Rvlñtud Ram Cone&siimi - e n-dmnm to SLPRS l6 k . The enicodiii*rnn p'»vLl*•'i cliyfi to lessees froin

coaseq«ofrlze Covzd-t9 gandeioic. As â pramicat apedieut, e lessee may elect not to assess'whethér'a Com d-J9 related rest cancession finn a lessor is a lease modification. A lessee rhs ciakcs I-Itis eTocUon 8ocouns for ooy chngc in leesc gsyioenq resulñng horn Ific Covid- 19 zelatod reat concesrioc he sartc way it would account For Ihe change under GLORS I6., ifth>ck•ngc were oot a lease modificatie.

The amwiWeit wag inteftded'to ap'ply unit. 30, lune 2£i2l , .but as the impact of the Covid- l9 ]iaridcMiñ ig

continuing, in'28 june 202i , CA Gri I nn •.exi6ded Ake gerio'd ’oF apgTicatién of.the prscticel expe'éient to 30

Aeiendoea6 to SUBS 9, LAAS SS, CLF S z. SLFRS 4 and SLFTtS 6 - Interest Rate Bencboixrk Xcform Bhese 1 aad 2

Hfgbly Probable Req iitrttn eat:' ches 6etcImining wheibet o foretnst transaction 'is highly probabR lo If

.dcs›gnaad as a hedged itcra, ui entity .shatl'assumc diat the intmtc bczickmark on wbick tkc kodgod resh flo',ys are based. é aot ahered as a:rof the reform

Prtagectf e Assessments: when gerfbrming prosge'cfi're assessments to evaluate cfietbw' ñ 5ad8tng

zebtloits fg qualifies:for kat8s accounting, an.ctiiiry shall esmzné Out the imsrsat date benchmark o« which

L3CAS 39 Retrospective Asrtasmeat-. en airity s oot reguâed to undertake the ’LFAS 39 j>e<>

. assessmwit' for hedging relehunsh@ dizectty afreoat by the reform. However, the enrig' musi a rnp)y with

alt mker EMS 3' badge accounñng mgulremeno. iacJudiog 6ie grosprstlve a'sse sment.

Sofliogic Finance PLC                                                                                          NOTES TO THE t'1NANClAL STATEMENTS

'Year ended 31. MBrch 2025

IBOR Retard Pba:re 2

In addition Ie Pbue j ame'ndments, CA Sri T. nS•. also issued añtendmmts to S1FRS 9, LKAS 39, SLFRS 7. SLFRS ^ and SLFRS. f6 4w'-to Interest Rxre Beoclunark Re'form. be Phase 2 emeñdmonts provide remporszy' uhe6 whicH ad‹trr effects whcñ an tnterbank offered Baie'(IBOR) is •pIabed wfih an alternative nearly risk-free interést rate'(ILFR). The âmendmena.include sivoal practical ezpodiectr

Tfic:eWtivc dat:of Ixxfi jBOR reform Phase ) and Phase 2.arnen&enis is for annual rePorting periads

3.1

AU fineacial GB 0d ]i8bi)ities are initially Ieco'gni6ed @ the trade date. Le.. &€ 6B£0 SBI Ae COOpa4gY

millet oeñ'$urniicqt éf Flnoivcisl loMru'meiiti

The classification ofi Tmancial instruments.a initial recognition dcpmds on Weir contrautusl rerms eoa Oje business model for managing the lasazuuents. Financial wstmmeols are initially measumd at tfieir fate Yolue

(FYPL,), transaction cosjs arc added jo,.or sulxmctcd From, t6u.+aoount. W1tcn Ihe fair yalue of finezicisl' instruments at i«Iria] recegnition'difTers:'from the ocnsscuon price, tile Company accounls'for“Dey I #rofit'or

¥hsn he aansactloa price éiffen Oam tbe fair v.clue of etbcr.ob l< current marI‹•t oa•sa.ctions I• iI< sante insazi/nenl, or basod on a valvatioc tecturiqae wliesc vBriabtcs include oaly data from obsWablc m*Aers,

hc Company rccogaiscs tic diffbetween tlte oauuicrion pzice eu'd f'eir vatus (a 'Day I’ prafit gr toss} in the tnmaie 0t tem'entova tlieanor of ihc' fman sl instrumeni usmg effective inmest wie method, In casei wkere feiz clue ie dcerniinod usiog d whiéfi is.aot'obsenabIe, the dif£moo bese+a ketra«sacaon ynte And m•‹kT value is only mognised tn the lnoxne her  ar when Ifie inputs becrme observable, or wIen Ihe

3.:t.4

The Company classlfies..all of iis financial meets' b'ased on the business rnodsl f0r managing ihe asses and thy essci's c'nntrantiial teens, miastiied at either:

£manrid.liabilities; other than loan oommionents and financial , are measured at amortiird cosi w at PVTPL when Ocy are held fiâr aading and derivative instrument or rbe Fair value designation is applied.

SoAlogic Finance: PLC

NOTES TO THE..FINANCIAL STATEMENTS

-

f'Inane1el Aczets at Aeortbcost:

Thc'Coopany ooly rocautrcs loen>receivables, sod'other 8=''• *'•Iin•estmena 9t amortised cost ifboh sf the following conditions arc otet:

• Iho''financial is lieid within's b'usiness oiodrl with iJie objectin to hold finaiicial'asitts In nrder to

• The 'contretmial terms of'th'e fins«'ciaI giva rise'on specified aates to cash flows It+¥t are nlely psymems o€principal and inteert(SPP0 dn th'e principal ar«omtt outstanding.

  Loaos and Receivables consist oFcash and bank baTauces, aecwiiics.qurckascd u»dcr rcgurclia agmotents, factormg rrrci*ablcs, lcasr receivables, hin purer rewivablei, been reerivebtcs, geld loan trebles and

  The details of the above condti‹ris are outlined below.

  Buaness hfodel Aâiéssroent

  The Company determines in business model u ae let ttiat beer reflect hm• .ii manages groups of nns»*lal

  wets toachieve his business objective,

  The Cozapsrry's business modIs nre assessed an an Insmrmen‹-by-nsrrume‹ baste, but:az a higber lavel of

  H9w the' prdbmicñce of Ote buel«eee model and the finaneiat'asseis'hrld within tbBt eral j•i J awal pa to the entity's key zaamgeraerit personnel

• The rid that.'sffect tjie perfomiance of ah'e briefs model (and the fizancinl isseti held within that business modei) aa6, in particular, ihe way G'oee rJsts aze managed

• I-too managers oI°tbe business are compensated (For example, whether the componsatton is based on the air values oFIfte assets managed or en the.conrrac«aI cash flows collected)

• The mpected bequency, value an4 riming ofsa4es arr also ioigonanf aspects.o/'ihe Coatpany's assessment

The business model moment is basod on raasonahly e*g›sctcd scr«ariw wk t '•8'••"worst cess" or stress cese* scotarios inro account. iFiash flows afier inihat ogoitfo'n ezt zeafiaa'd in a weF tbat is diftYuot from Ibe Company”s:otigitts} expectations, I}ic Compcny'does oot dosage tile clasaificatioa oI' the rcmsinmg. financial axseo held in iha b'usioiss model but ioc‹xpérâtes pcb inh›rrnatioo •'h.'•n'asse•sutg ne+'Iy originated

The SPFI lest

As:a scmad step of its cbssificaion proceed, tfie Company esseascs. 6so conaactuaI terots •?f flmancicl to

'Principal" far Ific g«rgase of this est'is defined es'the fiir xatub ofthe'finarfcial esset.sl medal mgnirian'and

may chetge over me lite ofrbc.£uiancinI cess (be esaraple, if0are areregeymorpri*cipsj oraotortisati‹xt

The au› siguifican‹ eieroats of oiteesi wi&ix e lending arrengeatenr are.typically Ihe W$iderab9o for the 6zoe va1'Je .of aioney ao'd. cre‹tit.rise zo ouJ‹e rhe seet assesimcnr, ihe Campsny cgplles Judgement amt

In co'ntrsst, cénoacMal terms of hat inooduae a niéze 6en the iinu‹o exposure to risks or vr•lzility in the' c'onhactxat cash flo that are uurelate4 to s basiC Iending'armngemeot do oot give rise to canoâdual cash flows tltst ang' solely paytoeats af principal end interest on be amount outstanaing. In such cases, iti'c finBnciai