Audited Financial Statement as at 31/03/25

1.1 FINANCE PLC FINANCIAL STATEMENTS

roR rHE vr.xR ENDfn

31 MARCH 2025

INDEPENDENT AUDITOR'S REPORT

- TO THE SHAREHOLDERS OF UB FINANCE PLC

Report on the Audit of the Financial Statements Opinion

We have audited the financial statements of UB Finance PLC ("the Company"), which comprise the statement of fi nancial position as at 31 M ai cli 2025, and the incoin e stateiiient, statement of profit or loss and other cont prelaensive income, statem ent of cman Yes in equity and statement of cash flows for the year then ended. and notes to the financial statements, inc luding rn aterial accountin g pot icies and other explaliatory in for-mation.

In our opinion, the accompany ing financial statements 3ive a true and fair view of the financial position " of the Coin pany as at 31 March 2025, and of its financial performance and its cash fiows for the year

then ended in accoi dance with Sri Lanka Accounting Standards. Basis for Opinion

We conducted our audit in accordance with Sri Lanka Auditing Standards (SLA tiSs). Our in responsibilities under those standai ds are further described in the A iiditor's Responsibilities for the Audit of the Financial Statements section of our report. We ai e independent of the Corn pany iii

accordance with the Code of Etli ics for Pro fessional Accountants issued by CA Sri Lanka (Code of Ethics) and we have fiilfi lied our other ethical responsibil ities in accoi dance with the Code of Ethics. We bel ieve that the aud It evidence we have obtained is sufficient and appropriate to prov ide a basis for our opin ion.

Key Audit Matters

Ke}' audit mattei's are those matters that, in our pl ofcssional judgment, werc of most significance in our

KPMG a Sri Lankan partnership and a member firm of the c P JaYaI lake FCn T.J.S. Ra|akarier FCA KPMG global organization of independent member firms rJs s Josepfi Fcé w K 0 C 4beyraihne ice afTilialed with KPMG International Limited. a private R M 0 B Rajapak$e ICT Ms B h D T h Rodrigo FCA English company limited by guaran lee. All righls reserved. 81 N M Shameel FCA Ms C T X N Perera ACA

W W J.C Perera FCA

G A U Karunaraine DCs R H. Rajan FCA

A M R.P Alava xoon ACA

P' °c'p•ir S n I Peseta rcw ‹uc LLe. Ano ey-al-La•. n.s. Goone atdena MCA, as r R ziya+d rev Tue}. FciT.

K Somasundaram ACT (UK), Ms. D Corea 0fia+maralne

Allowances for Expected Credit losses - loans and advances and finance lease receivable

"

w

Other matter

The financial statements of the Company as at and for the year ended 31 March 2024 were audited by another auditor who expi essed an unmodified opinion on those statements on 26 June 2024.

Other Information

Management is responsible for the other information. The other information comprises the information included in the Annual report but does not incl ude the financial statements and our auditors' report thereon. The Annual report is expected to be made available to us after the date of this auditors' report.

Our opinion on the financial statements does not cover the other inforiiiation and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially niisstated.

When we read the Annual repoia, if we conclude that there is a material m isstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charp•ed with Governance for the Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with Sri Lanka Accounting Standards, and for such internal control as management

' determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or err-or .

In prepai in e the financial statements, iranageiiient is responsible for assess ing the Com pany s abil ity to continue as a going concern, disc losing, as appl icable. rrianci s related to going concern and using the going COIicei n basis of accounting tinless management eithei intends to liquldate the Coin pany or to cease operations. or has no i eat istic alternative brit to do so.

Those charged with governance are i esponsib ie for o› erscein g the Company's financial repos ing process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about wliethcr the financial statements as a whole are free from material rn isstateMent. whether due to fraud or error, and to issue an auditor's i eport that inc ludes our opin ion. Reasonable assurance is a li igh level of assurance, brit is not a guarantee that an audit conducted in accordance with SLA uSs will al«'ays detect a material rimisstateinent when it exists. Misstatements can arise from fraud or error and ai c considered material if, individually or in the a•gregate. they could reasonably be expected to inflricnce the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with S LAuSs, c exercise professional j tidginent and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks. and obtaln audit ev idence that is sufficient and appropi late to prov ide a basis foi our opinion. The i isk of not detecting a material misstatement resulting from fi atid is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional orn issions, rnisrepresentations, or override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit pi ocedures that are appropriate in the circuits stances, but not for the purpose of expressing an opin ion on the effectiveness of the Corn pany's internal control.

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

• Conclude on the appi opriateness of iiianagement's rise of the going concei n basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a goin _ 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 OI'. if such disclosures are inadequate, to modify oui opinion. Our conc lusions are based on the audit e›'idence obtained up to the date of our auditor's report. However, future events or conditions way cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, striictui e and content of the financial statements, including the " disclosures. and whether tlic financial statements represent the underlying transactions and events in a

manner that achieves fair presentation.

We coin rnunicate with those charged with governance regarding, aiiiong other matters, the planned scope and timing of the audit and sign ificant audit findings, including any sienificant deficiencies in internal conti of that 'e identify during our audit.

We also provide those charged with govei nance with a statement that we have coin plied with relevant ethical requirements regarding independence, and to corn ir un icate with them all relationships and other

Report on Other Legal and Regulatory Requirements

As required by section 1.63 (2) of the Companies Act No. 07 of 2007, we have obtained all the information and explanations that were required lot the audit and, as far as appears from our exam ination, proper accounting records have been kept by the Company.

CA Sri Lanka membership number of the engagement partner responsible for signing this independent auditor's report is 3707.

Colombo, Sri Lanka 05 July 2025

The Accounting Pol icies and Notes on pages I I through 75 form an integml part of these financial statements

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J'lie Accounting Policies and Notes on pages 1.1 through 75 form an integral part of these financiaI statements.

1 certify that these Financial Statements arc in compliance with the requirements of the Companies Act No. 07 of 2007.

Asanka Galbadaarachchi

Assistant General Manager - Finance

The Board of Directors is responsible for these Financial Statements. Signed for and on behalf of the B a

Moahan Balendra Ransith K a e

Director Director / Chief Executive Officer

The Accounting Policics and Notes on pages I I through ?3 form an integral part of lhcse financial statements.

05 July 2025 Colombo

-8-

.‹,i t

- T ?.000.000

i.‹72.2›

95.642

- 2Td.*7 8,829

39.99 .074 J9,99J.074 (2.50T.4 5*)

11 38.182,030) t 38.582.030

4d]urmvñsF0

Depreciation o1' Property. Plan i a14d Etjuip aaeJu Amotizai ion of R iglii of IJ se Asscis

Ailiortisal ion of' Intangiblc Assets Interest Expeilse on Borrowings

Interest Expense on Lease L iability liupaimlcn i Charges on Loan s and Advanees Inipainnent Charges on Non FileaJacial Aseers l°rov ision for Retireiaaent Bcnefi i Obligation

Profit on disposal of Fropcrty. I*lai t a»d Equip Item

Fair Value Gain on Fi Jancial In'estincnls al r ir Value through I'rctil or Loss Gain o» Modi fication of ROU Assel

U

Frovisio for Bonus Di 'idcnd Rccei'cd

Operatin• P ofif DcFore Changcs in Opcrefin Asscts and Lia bilitics

(Increase)/Decrease in Operating Assets

(Increase)Decrease in Financial Asscts at Amortised Cost-L oans indd Receivables (IHcrease)/Decrease in Other Financial Assets

(Increase)/Decreasi ea ln esiincnt in Real Estate (lncrease)foecrease in Other Non l'inancial Assets

I ncrcasc/(Decrease) in Operating Lial›iliii•s

Increase/(Decrease) in F ina»cial hiabilities at Amortised Cost - Due io Depositors Incrcase/(Decrease) in Other Financial Liabil ities

Increase/(Decrease) in Ot) cr hon Financial Liabililics Cash gcncrafed From/(used in) Operations

lnierest Expense Paid

Retirenieni Benchi Liabilities Paid Income Tax Paid

Net Cash Gcnerated from/ (used in) Operating; Act i•'ities

Cash flow* front/(£ sed in) Tnvesting Activities Acquisition oI Property, Ptant and Equipment Aeqnisition of Intangible Assets

Proceeds from Sale of Property. Plaut and Equipment

Din idcnd Received

Cash FI0w fi-om/(It «i i« rina ncing Activities

2.1

4.2

4.2

6

G.2 29.2

21

5

29

20

19

5

2025

Its.

79.004.43 7

41.940.366

35,594, t33

I.502,017

37,550.845

3.4.628.017

85.885,638

16.66G,000

8,813,935 (2,S I'1,999)

(5.099.380)

1.2,000,000 (G9 T.157)

1,843.3 60,619}

1.693.27 I

4.1 1 8.831 (69,593,5 I I )

(1,907,142,028)

(ñ66.9 I 6,6d 8)

(7 I, I BG.735)

(7,42G,0G?)

(54,341,767)

(6.062.500}

(82,898,683)

(717,676)

3,857.542

691,157

2024

Rs.

6.1.553 .762

I.82?,472

17,268,463

2G.4 I9.856

J6.87 1.789

1.2.2 99.074

9.235.904

1.1.49 5.779)

(2.59 I.6 I I )

7.660.000

(697.500) 257,7S0,75I

259,f›59.550

(3.670.627)

3. 1.62.406

{73.99 1.940)

185,159,389

,0G2.922.27G

89.39G.40 I

(?3.95G.0.54)

,T 18,3G2,G23

(43,688,31 9)

(2,? 73 250)

l,4fifi,211,174

(75.726,255)

(4,541,540)

2,380.000

697,500

Loans Obtained during the year Loans Settled during the year Lease Rentals Paid

Issues of Shares

Net Cash from/(Used in) Financin' Activities

J

Act (Dec› case) / increase in Cash a ad Cash Equivalents Cash and Cash kqui'aIcnts at Beginning oF the 'en ' Cash and Cash Egui›'alenfs »f End oF the Year

U

Balances \'if lv Daleks (Set oF Overdraft)

Financial Ii vcstnicn is ai Fair Value TfrouBH Pro fit or Loss Financial IpvestilJents at Amortised Cost

23. 25 1,825,000,000

23 (631.250,000)

21 (16.742.510)

30 254.278,829 l,d51,286,319

2.339, 1.26.549

43,461,230

202.385.55 I

500.000,000

877,702,548

400.000,000

(855.041,855)

(21.858.352)

55.000, 000

996,120,GG2 I ,343,005,887 2,339,126,fi49

38,720.578

1.69,575,922

2,130.830.049

2,339,126,549

l']ac Accou laIing Policies and Notes o a pages 1.1 throu gli 7fi tonn an in teeral pan of these fi14a 4cial staieiaienis.

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UB FINANCE PLC

NOTES TO THE FINANC IAL STATEMENTS

for the j'char canileal 51 Muir cli 2025

1. CORPORAT K IN FOItMATI ON

   1. Gcnei al

      - UD I'inaice PLC (J BI ) is a pihI ic Iinn ited Iiabilit} Company , iMcorpoiated and doiiJici led in Si i Lan ka. The Con+pan¿ ›'as original I iiJcoi poi ated as The ñinance & G dial niltee Com pany Line ited on I ? J riI} I 9G 1 indci li e C ompaM ies Ordi mance No.3 I oF 193S and was i e-i egistci cd as ieqiired undci the p‹ovision ‹›I" the Coillpanics Act to.7 of 2007 ou 2Gtl DecenJhci 2007. The Co‹J1pan} being a Fii ance Com pany' is also i cgislei"ed vit]1 the CCIIII al Bank of Si i Lauka undei the L inance Business C ompaM ice" Acl to. 42 of 20.1 I a Url L iliancc I.casing Act No.3G of 2000 of Si i Lanka.

      Un ion Bank of Colorn bo PLC (Parenl cols Jiaiij') togethei with its US b‹ised strateg ic in vestment partner SlioreCap 1.1 acquired The Finance & Guarantee Co. Ltd. on 1st N ovens bei 20 i i . The Corn pany was resti iiciui ed. i ebi anded & Ihunched as UB Finance Co. Ltd. on 25 April 20 12. On A ii3tist 1.4. 2023. UBF was Iisted on the C oloiiibo Stock Exchange and changed its nanic io UB Finance P1.C. The CojTjpany's Register cd €JIlice / Head Office is current Iy located at No. 10. Da isy Villa Avenue Coloin bo 04.

   2. Pa i ent Entity and the Ultimate Controlling Pa rties

      
      
      

      The Compan) 's ink inediaic parelit is Um ion 13ank of Co lone bo PLC and ultimate control lin* party is CG Corp I°anaiiia w liicli is reeistered in l"iinaiii a.

      
      
      

   3. Principal Activities rind Nature of Operations

      
      
      
      
      
      

      As a Finance Compan}' registered with the MoMctaiy Boai d of the Central Bank ot Sri Lanka. the print iple business activitics of the Com pany include mobilizing fixed deposits and savings accounts, pi oviclii g financial scl viccs such as lease. li ii e purchase and loan facilities, Gold Loan faci lities, vol king capital acliv ities such as factoring. The ColJJpany also deals ii1 real estate and other investment and credit activ itics. Being the first finance conJpaiJy to be backed by a com nlercial bank in the pi iyate sector" UB Finance PLC is uniquely positioned to otfci its c istoinei s The vei satil it; of a finance company backed by tlic strcngtlJ of a bank".

   4. Date of Authorization for Issue

      The Financial Statements of UB Finance PLC foi the yeai ended 3.1 March 2025 vas aiitliori zed for issue in accordance »'itli a resolution of the Boai-d of D irectors on 05 J lily 2025.

      
      
      

      Director's Responsibility Statement

      
      
      

      The Board of D irectors is Responsible foi the prepai ation and presentation of the Fioalicial Statements of UB Finance PLC as per rite requiremeijis of the Sri Lanka Accounting Standards (LKAS/S LFRS) and the provision requirements of the Com pany Act No. 07 of 2007.

      UB FI NANCE PLC

      NOTES TO THE rINANCIAL STATEMKNTS

      For f/re' j'c•rir enilc•il 3I /tfrii'c'/i 2t425

2. HAS IS OF PIIEPARATION & MATERI.ML ACCOUNTING POLICIES

   1. Basis of Pi-e pai-ation

      1. S tatenient of Compliance

         
         
         

         The Stateiii ent of l°rolit and Loss. S t8ternei4t Of COinpi chCI4Sive I neons e. State rnent of 1 inancia 1 Posit ion. Stateiuen I of C lianges in Eq ii ity and Stateiiicnt ot Cash F1on s together w itli Account ink Pol icies and liotes (FII10nci8l Stalerncnts), a› at 3.1 March 2025 and for the year then ended. have bcen prepai ed in accoi dance w itli Sri Lanka Accounting Standards (here ina fler refen ed as LKA Ss and SL FR Ss) laid down by The Institute ot Chartered Accoiintants of Si i Lan la and in coiupl iance with the requ ireirents of ilie Cont pany Aci to. 7 of 2007. In addition. the presentation of the fh£lne ial stalein ents coin pl ies iv itli the requ irernents of the Finance Brisi ness Act No 42 of 20 i l . the List in3 Rei les of the Coloin bo Stock 1:xclaange. and the gii idelines issued by the Central Bank of the St i Lanka (C BSL).

      2. Basis of Measurement

         The Financial Statements of llJe Compan} have been prepai ed on the lJislo‹ ical cost basis, except

         for the Follo› 'ins' matei ial iteiJs in the Statcmnt of Fiilanc ial Position:

         • F inancial assets iiieastired at fair value thi oti•li pi ofit or loss (FVTPL).

         • Financial assets ineasiired at fair va!ne ilii oti•li other cojTj prelielis ive incoine (FVOCI).

         • Lands and bui Idin s arc nJcas lred at cost at the tii1Je of acquisition and s ibsequentlv at ieval ued alnounts.

           
           
           

         • Liabi lilies for dcfined benefit obli at ions in e iccogmzcd using an actuarial technique (pi ojected un it ci edit method).

      3. Functional antl pi-esentation curi-ency

The financial statements are pi esentcd in Si i Lankau i ipees \'Ii ich is the currency of the primary ccoiJonJic ei1›'iroM1Jci1t in which the Company opal ales.

The Mana•eiiient has rn ade an assessiii eiii of its ability to continue as a goin• concern Phd is satisfied that it has the resources to continue in business for the foreseeable future. In inak ing th is assessment, the Board has considered a wide range of information relaling to present and tuture conditions. The D irectoi s assessed the futhi e performance of the bus iness and satisficd that it has the resources in place that arc required to iiiect its ongoing i-e3tilatoij and operational i equirements. The assessiiient is based on the business plan wli icli Cont8iIJS future projections of profitabi 1ity. regulatoij capital requ ireiiients and funding needs.

The business plan showed that the Compan} I as suffic ient capital in place to support its future business iequii ements. Accoi diiJgl} , the D ii octoi s concluded that thei e is i easo»abIe expectation

" that the Com pany has adeqlate resources tr› coiJtiiJue as a Going CoiJceriJ Koi a pei iod of at least 12 months front the date of approval of tlc I inancial Statements. FH1liei , the Management is not aware hof ai nzatei"ial rmccrtainties that ma} cast sign ifiC0lJl clorihl upon tlic Con paMy s abilit} to continue as a going concern. TI1ei efoi c, the I' inancial Staten cnts of the Company continue to be prepai ed on a Going CoMcei n basis.

UB FIN.ANCE PLC

mon:s TO THE FINANCIAL STATEMENTS

For thc 3'char ciiileal 31 March 202.f

1. I3ASIS OF PRE1•AItAT1ON & MATERIAL ACCOUNTING POLICIES (CONTINUED)

   1. B:isis of Prepai-ation (Continuetl)

2.1.3 Pi-esentation of financial stateni ents

The Corn Pa iij presents rite ii Statement of Hi nancial Posit ion by grouping assets and Iiab il ities bJ nattii c and Iisti no in order that reflects i elati e 1iqti id ity and maturity pattern. An ana Iysis recording recover y oi settleiii ent i 'it lain 1.2 iiiontlis a ftcr the report ink date (current) and whore than 1.2 m ontlis after the reporting date (non- clii ient) is presented in note 36.20.3 to the financial statement.

_ The Company lfas coi›sisteiitly appl ied tlic accotmtllJg polic ics set out in Notes I to 3 to all pci iods pi esentcJ in these Financial Statements. except for the follo ing olJich leave been adopted during the report iilg pei iod:

" (i) Presentation of the Statement of Cns li Flows - Change in presentation iiiethod front the Direct Method to the Indirect Method try the fair presentation.

U B FINANCE PLC

NOTES TO THE FINANCIAL STATE M ENTS

For' th c ) c•‹ii- ciiile‹l .1 I M ii'cli 2t125

UB FINANCE PLC

NOTES TO THE rINANCIAL STATEMENTS

for thc• ye‹a ca‹lc•‹l 51 March 2ñ2s

2. BASIS OF PIIEPARATION & MATERIAL ACCOUNTING POLICIES (CONTINUED)

UB FINANCE PLC

NOTES TO THE FI N ANC IA L STATEMENTS

2. BASIS OF PREPARATION & MATERIAL ACCOUNTING POLICIES (CONTINUED)

2.S MATERIAL ACCOUNTING POLICIES (CONTINUED)

2.3.2 Fair Value Measurement (Continued)

The fair val tie of an asset or a liabi Iity is ir casiired using the assumptions that market participants would use when pricin g the asset or 1iab il ity, assurn ing that rn arket partici pants act in their econoin ie best interest. A fair value incasin einent of a non financial assct takes into account a market participant's abi Iity to generate economy ie benefits by his ink the asset in its li ighest and best use or by sell irig it to another market participant that ›vou ld use the asset in its liighest and best rise. The Coiiipany rises various valuation iiiethodologies that ai e appropriate in the circumstances and for liicli su fficient data is available to measure fair value, maxim isin3 the use of relevant observable inputs and in in iiii ising the use of unobsei vable inputs. The use of observable and iinobservable in puts and their si gn ificance in measuring fa ir val ue are reflected in our fair value h ierarchy assessment.

Level 1 : Inputs inc hide quoted prices for identical instruments.

Level 2 : Inputs inc hide quoted prices for sink ilar instruments and observable inputs such as interest rates, currency exchange rates and yield curves.

Level 3 : Inputs include data not observable in the niarket and reflect management judgement about the assuiii ptions iiiarket pai4icipants would rise in pricing the instruments.

Valuation Fi-ameivork

The Company has an established control trainework for the ineasureiiient of fair values. Finance Department is responsible for the valuation of financial instruments. Obtaining in put data, valuI{ig of financial instruiiients and veri fying the va mation models are being segregated within the Finance Department. M ana•pement reviews the inputs to the fair value ineasurelTlents to ensure they are appropriately cate•,orised within the fair val ue hierarchy. Transfers into and transfei s out of the liierarchy levels are recognised as if they had taken place at the end of the reporting period.

Inc luded in cash and cash equivalents are li igli ly Iiquid investiTlents that are readily convertible to known amounts of cash, and which are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remain ing time to inatui ity of three months or less from the date of acquisition. A mounts on deposit and available upon demand, or negotiated to provide for dai ly liquidity without penalty, are classified as cash and cash equivalents. Time deposits and money market accounts that lTleet the above criteria ai e reported at par value on our Statement of Financial Position.

Loans and Receivables

We measure perfonn ing loans and receivables at faii value for purposes of disclosui e using internal val uatIOi4 iaiodels. These rrlodels project futin-e cash flows of financllig contracts based on scheduled contract payiiients (including principal and interest), The projected cash flows are discounted to

" present value based on assumptions regarding credit losses, prepayment speed, and applicable spreads to approximate current rates. Our assume ptions regarding prepayment speed and credit losses are based on historical performance. Ve use the fair value of collateral to determine the fa ii value of non-perfO1'In Ings loans and receivables. The collateral for loans and receivables is the

- I7-

UB FINANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

For thy) cuu- en‹feel 31 March 2t12S

2. BASIS OF PREPARATION & MATERI ML ACCOUNTINC POLICIES (CONTINUED)

2.3 MATERIAL ACCOUNTING POLICIES (CONTIN UED)

The adoption of SLFRS 09 has fundamentally changed the Company's loan loss impairment method by replacing LKAS 39's incurred loss appi oach with a forward-looking Expected Credit Loss (ECL) approach. From 1 April 201 8, the con pany has been recording the allowance for expected credit losses for all loans and other debt financial assets not field at Fair Value Through Profit or Loss (FVTPL). together with loan cornn itiiients and financial guarantee contracts, iIt th is scction all i-eferred to as 'financial instrum ents' Equity instrum ents are not subject to iiiipairinent under SLFRS 09.