INTERIM
FINANCIAL
STATEMENTS
30TH SEPTEMBER 2024
UB FINANCE PLC | ||||||||||
STATEMENT OF PROFIT & LOSS | ||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||
30.09.2024 | 30.09.2023 | Variance | 30.09.2024 | 30.09.2023 | Variance | |||||
Rs. | Rs. | % | Rs. | Rs. | % | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Income | 524,071,609 | 593,580,135 | -12% | 1,045,274,418 | 1,171,403,457 | -11% | ||||
Interest Income | 478,314,445 | 560,045,419 | -15% | 960,148,035 | 1,100,212,783 | -13% | ||||
Interest Expenses | (271,182,541) | (352,260,673) | 23% | (591,634,464) | (718,825,394) | 18% | ||||
Net Interest Income | 207,131,904 | 207,784,746 | 0% | 368,513,571 | 381,387,389 | -3% | ||||
- | ||||||||||
Fee and Commission Income | 23,661,340 | 5,994,304 | 295% | 41,715,355 | 19,389,906 | 115% | ||||
Fee and Commission Expenses | (6,645,750) | (3,727,900) | -78% | (12,237,550) | (4,652,000) | -163% | ||||
Net Fee and Commission Income | 17,015,590 | 2,266,404 | 651% | 29,477,805 | 14,737,906 | 100% | ||||
- | ||||||||||
Other Operating Income (Net) | 22,095,824 | 27,540,412 | -20% | 43,411,028 | 51,800,768 | -16% | ||||
Total Operating Income | 246,243,318 | 237,591,562 | 4% | 441,402,404 | 447,926,063 | -1% | ||||
- | ||||||||||
Impairment Charge for Loans and Advances and Other Assets | (6,807,062) | (31,651,994) | 78% | (21,114,467) | (69,173,607) | 69% | ||||
Net Operating Income | 239,436,256 | 205,939,568 | 16% | 420,287,937 | 378,752,456 | 11% | ||||
- | ||||||||||
Staff Costs | (93,024,780) | (80,518,658) | -16% | (178,959,610) | (160,299,984) | -12% | ||||
Depreciation of Property, Plant and Equipment | (18,701,497) | (13,988,366) | -34% | (36,411,442) | (28,447,291) | -28% | ||||
Amortisation of Intangible Assets | (376,967) | (620,914) | 39% | (743,543) | (1,052,508) | 29% | ||||
Other Expenses | (80,543,614) | (81,494,771) | 1% | (164,859,689) | (141,455,324) | -17% | ||||
Operating Profit before Value Added Tax on Financial Services | 46,789,398 | 29,316,859 | 60% | 39,313,653 | 47,497,349 | -17% | ||||
(VAT on FS) | ||||||||||
Value Added Tax on Financial Services (VAT on FS) | (22,688,633) | (17,006,717) | -33% | (33,750,052) | (31,846,781) | -6% | ||||
Social Security Contribution Levy (SSCL) | (3,151,183) | (2,362,044) | -33% | (4,687,490) | (4,423,164) | -6% | ||||
Profit/(Loss) Before Taxation | 20,949,582 | 9,948,098 | 111% | 876,111 | 11,227,404 | -92% | ||||
Tax Expense | (9,102,381) | (7,163,232) | -100% | (10,259,328) | (7,215,735) | -100% | ||||
Profit/(Loss) for the Year | 11,847,201 | 2,784,866 | 325% | (9,383,217) | 4,011,669 | -334% | ||||
Earnings per Share: Basic | 0.00 | 0.00 | (0.00) | 0.00 |
UB FINANCE PLC
STATEMENT OF COMPREHENSIVE INCOME
For the Three Months Ended | For the Three Months Ended | |||||||||||
30.09.2024 | 30.09.2023 | Variance | 30.09.2024 | 30.09.2023 | Variance | |||||||
Rs. | Rs. | % | Rs. | Rs. | % | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Profit for the Year | 11,847,201 | 2,784,866 | 325% | (9,383,217) | 4,011,669 | 334% | ||||||
Other Comprehensive Income to be reclassified to Income Statement | - | - | 0% | - | - | 0% | ||||||
Other Comprehensive Income not to be reclassified to Income Statement | ||||||||||||
Gains on revaluation of land and buildings | - | - | 0% | - | - | 0% | ||||||
Deferred Tax Charge impact on revaluation reserve | - | - | 0% | - | - | 0% | ||||||
Deferred Tax Charge impact on revaluation reserve due to tax rate change | - | - | 0% | - | - | 0% | ||||||
Gain on creating Investment in Shares | - | - | 0% | - | - | 0% | ||||||
Deferred Tax Charge on creating Investment in Shares | - | - | 0% | - | - | 0% | ||||||
Actuarial gains /(losses) on Post Employment Liability | - | - | 0% | - | - | 0% | ||||||
Deferred Tax (Charge) /Reversal impact on above | - | - | 0% | - | - | 0% | ||||||
Other Comprehensive Income for the Year, net of taxes | ||||||||||||
- | - | 0% | - | - | 0% | |||||||
Total Comprehensive Income for the Year | ||||||||||||
11,847,201 | 2,784,866 | 325% | (9,383,217) | 4,011,669 | -334% | |||||||
UB FINANCE PLC
STATEMENT OF CHANGES IN EQUITY
Regulatory | |||||||||||||
Statutory | Loss | ||||||||||||
Stated | Reserve | Fair Value | Revaluation | Allowance | Accumulated | ||||||||
Capital | Fund | Reserve | Reserves | Reserves | Profit/(Loss) | Total | |||||||
Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | |||||||
Balance as at 31 March 2023 (Audited) | |||||||||||||
3,016,482,247 | 71,987,751 | 16,452,082 | 49,029,226 | 92,549,026 | (551,824,724) | 2,694,675,608 | |||||||
- | - | 0 | - | ||||||||||
Share issue | 55,000,000 | - | - | - | - | - | 55,000,000 | ||||||
Other Comprehensive Income (Net of deferred tax) | - | - | - | - | - | - | - | ||||||
Profit for the period | - | - | - | - | - | 4,011,669 | 4,011,669 | ||||||
Transfer to regulatory loss allowance reserve | - | - | - | - | 178,936,032 | (178,936,032) | - | ||||||
Balance as at 30 September 2023 (Unaudited) | 3,071,482,247 | 71,987,751 | 16,452,082 | 49,029,226 | 271,485,058 | (726,749,087) | 2,753,687,277 | ||||||
Share issue | - | - | - | - | - | - | - | ||||||
Other Comprehensive Income (Net of deferred tax) | - | - | 6,758,143 | 46,660,250 | - | 95,642 | 53,514,035 | ||||||
Profit for the year | - | - | - | - | - | (2,539,451) | (2,539,451) | ||||||
Transfer to regulatory loss allowance reserve | - | - | - | - | 9,535,603 | (9,535,603) | - | ||||||
Transfer to Statutory Reserve | - | 73,611 | - | - | - | (73,611) | - | ||||||
Balance as at 31 March 2024 (Audited) | |||||||||||||
3,071,482,247 | 72,061,362 | 23,210,225 | 95,689,476 | 281,020,661 | (738,802,110) | 2,804,661,861 | |||||||
Rights issue | 254,278,829 | - | - | - | - | - | 254,278,829 | ||||||
Other Comprehensive Income (Net of deferred tax) | - | - | - | - | - | - | - | ||||||
Profit for the period | - | - | - | - | - | (9,383,217) | (9,383,217) | ||||||
Transfer to regulatory loss allowance reserve | - | - | - | - | (436,459) | 436,459 | - | ||||||
Balance as at 30 September 2024 (Unaudited) | |||||||||||||
3,325,761,076 | 72,061,362 | 23,210,225 | 95,689,476 | 280,584,202 | (747,748,868) | 3,049,557,474 | |||||||
UB FINANCE PLC
STATEMENT OF CASH FLOWS
For the period ended | 30.09.2024 | 30.09.2023 | |
Rs. | Rs. | ||
(Unaudited) | (Unaudited) | ||
Cash Flow from Operating Activities | |||
Interest Received | 902,682,230 | 992,188,288 | |
Fees and Commission Receipts | 41,715,355 | 19,389,906 | |
Interest Paid | (647,466,939) | (758,527,238) | |
Fees and Commission Paid | (12,237,550) | (4,652,000) | |
Payments on Other Operating Activities | (368,821,637) | (308,162,974) | |
Operating Profit/ (loss) before changes in Operating Assets and | (84,128,541) | (59,764,018) | |
Liabilities | |||
(Increase) /Decrease in Operating Assets: | |||
Funds Advanced to Customers | (649,012,020) | 808,375,557 | |
Others | 29,019,512 | (43,054,931) | |
Increase in Operating Liabilities: | |||
Due to banks and other customers | (679,367,220) | 897,045,054 | |
Others | (66,418,304) | 65,536,290 | |
Net Cash used in Operating Activities before Income Tax | (1,449,906,574) | 1,668,137,952 | |
Retiring Gratuity paid | (712,500) | (1,619,950) | |
Income Tax | - | - | |
Net Cash used in Operating Activities | (1,450,619,074) | 1,666,518,002 | |
Cash Flow from Investing Activities | |||
Dividends Received | - | 270,000 | |
Purchase of Intangible Assets | (675,676) | (4,541,540) | |
Purchase of Property and Equipment | (45,528,946) | (20,536,799) | |
Proceeds from Sale of Property and Equipment | - | 420,000 | |
Proceeds from Sale of Real Estate | 3,250,000 | 7,956,000 | |
Net Cash used in Investing Activities | (42,954,622) | (16,432,339) | |
Cash Flow from Financing Activities | |||
Loans obtained during the year | - | - | |
Loans settled during the year | - | (455,041,855) | |
Issues of Shares | 254,278,829 | 55,000,000 | |
Net Cash generated from Financing Activities | 254,278,829 | (400,041,855) | |
Net (Decrease) / increase in Cash and Cash Equivalents | (1,239,294,866) | 1,250,043,808 | |
Cash and Cash Equivalents at Beginning of the Year | 2,339,126,549 | 1,343,005,887 | |
Cash and Cash Equivalents at End of the Year | |||
1,099,831,683 | 2,593,049,695 | ||
Reconciliation of Cash and Cash Equivalents | |||
Cash in Hand | 36,340,670 | 40,162,225 | |
Balances with Banks (Net of Overdraft) | 44,155,567 | 147,333,702 | |
Financial Investments at amortised cost | 1,019,335,446 | 2,405,553,768 | |
1,099,831,683 | 2,593,049,695 | ||
UB FINANCE PLC | |
SEGMENT INFORMATION | 9,020,967,823 |
For the Management purposes, the company is organised in to four operating segments based on the services offered to customers. The following table presents income, profit and certain asset and liability information regarding the company's operating segments.
Auto Loans | Property Loans | Gold Loans | Others | Total | ||||||||||
30.09.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | |||||
Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
Interest Income | 619,328,820 | 560,753,331 | 28,767,293 | 39,245,201 | 143,458,877 | 193,243,598 | 168,593,045 | 306,970,653 | 960,148,035 | 1,100,212,783 | ||||
Interest Expenses | (366,908,539) | (445,409,451) | (59,256,591) | (79,205,363) | (87,434,439) | (93,401,797) | (78,034,895) | (100,808,782) | (591,634,464) | (718,825,393) | ||||
Net Interest Income | 252,420,281 | 115,343,880 | (30,489,298) | (39,960,162) | 56,024,438 | 99,841,801 | 90,558,150 | 206,161,871 | 368,513,571 | 381,387,390 | ||||
Fee and Commission Income | 24,409,904 | 13,048,112 | 3,857,628 | 533,654 | 13,152,001 | 5,737,106 | 295,822 | 71,034 | 41,715,355 | 19,389,906 | ||||
Fee and Commission Expenses | (12,237,550) | (4,652,000) | - | - | - | - | - | - | (12,237,550) | (4,652,000) | ||||
Net Fee and Commission Income | 12,172,354 | 8,396,112 | 3,857,628 | 533,654 | 13,152,001 | 5,737,106 | 295,822 | 71,034 | 29,477,805 | 14,737,906 | ||||
Other Operating Income (Net) | 7,523,577 | 17,929,578 | 2,419,268 | 6,832,273 | 2,321,852 | - | 31,146,331 | 27,038,917 | 43,411,028 | 51,800,768 | ||||
Total Operating Income | 272,116,212 | 141,669,570 | (24,212,402) | (32,594,235) | 71,498,291 | 105,578,907 | 122,000,303 | 233,271,822 | 441,402,404 | 447,926,064 | ||||
Impairment Charge for Loans and Advances and Other | ||||||||||||||
Assets | (45,136,235) | (70,525,535) | 29,115,210 | (623,199) | (567,536) | 2,154,677 | (4,525,906) | (179,550) | (21,114,467) | (69,173,607) | ||||
Net Operating Income | 226,979,977 | 71,144,035 | 4,902,807 | (33,217,434) | 70,930,755 | 107,733,584 | 117,474,398 | 233,092,272 | 420,287,937 | 378,752,457 | ||||
Other Expenses | (211,961,486) | (188,041,030) | (37,732,258) | (33,560,387) | (44,364,083) | (38,477,385) | (49,761,472) | (41,676,506) | (343,819,299) | (301,755,308) | ||||
Depreciation and Amortisation | (22,860,186) | (18,280,354) | (4,057,985) | (3,250,722) | (4,866,081) | (3,833,367) | (5,370,733) | (4,135,356) | (37,154,985) | (29,499,799) | ||||
Operating Profit before Taxes | (7,841,695) | (135,177,349) | (36,887,436) | (70,028,543) | 21,700,591 | 65,422,832 | 62,342,193 | 187,280,410 | 39,313,653 | 47,497,350 | ||||
- | - | |||||||||||||
Taxes | - | - | - | - | - | - | (48,696,870) | (43,485,680) | (48,696,870) | (43,485,680) | ||||
Profit/(Loss) for the Period | (7,841,695) | (135,177,349) | (36,887,436) | (70,028,543) | 21,700,591 | 65,422,832 | 13,645,323 | 143,794,730 | (9,383,217) | 4,011,670 | ||||
UB FINANCE PLC
FAIR VALUE MEASUREMENT
As at 30-09-2024 (Unaudited) | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||
Rs. | Rs. | Rs. | Rs. | |||||
Financial Assets measured at fair value | ||||||||
Financial Investments at fair value through other comprehensive | ||||||||
income | ||||||||
Equity Securities | - | - | 31,512,714 | 31,512,714 | ||||
Non Financial Assets | ||||||||
Land and buildings | - | - | 173,182,978 | 173,182,978 | ||||
- | - | 204,695,692 | 204,695,692 | |||||
As at 31-03-2024 (Audited) | |||||
Level 1 | Level 2 | Level 3 | Total | ||
Financial Assets measured at fair value | Rs. | Rs. | Rs. | Rs. | |
Financial Investments at fair value through other comprehensive | |||||
income | |||||
Equity Securities | - | - | 31,512,714 | 31,512,714 |
Non Financial Assets
Land and buildings
Fair value of financial assets and liabilities not carried at fair value
Level 01 | |
Rs. | |
Financial Assets | |
Financial Assets at amortized cost - Loans and | - |
Advances to Customers | |
- | - | 173,734,247 | 173,734,247 | ||||
- | - | 205,246,961 | 205,246,961 | ||||
As at 30-09-2024 (Unaudited) | |||||||
Fair Value | Fair | Carrying | |||||
Level 02 | Level 03 | value | amount | ||||
Rs. | Rs. | Rs. | Rs. | ||||
9,112,391,561 | - | 9,112,391,561 | 8,478,804,590 |
- | 9,112,391,561 | - | 9,112,391,561 | 8,478,804,590 | |||||
Financial Liabilities | |||||||||
Due to other Customers | - | 7,061,258,668 | - | 7,061,258,668 | 6,787,444,297 | ||||
Other Borrowed Funds | - | - | - | - | - | ||||
- | 7,061,258,668 | - | 7,061,258,668 | 6,787,444,297 | |||||
As at 31-03-2024 (Audited) | |||||||||
Fair Value | Fair | Carrying | |||||||
Level 01 | Level 02 | Level 03 | value | amount | |||||
Rs. | Rs. | Rs. | Rs. | Rs. | |||||
Financial assets | |||||||||
Financial Assets at amortized cost - Loans and | |||||||||
Advances to Customers | - | 8,629,135,671 | - | 8,629,135,671 | 8,696,461,814 | ||||
- | 8,629,135,671 | - | 8,629,135,671 | 8,696,461,814 | |||||
Financial liabilities | |||||||||
Due to other customers | - | 7,990,399,165 | - | 7,990,399,165 | 7,527,533,959 | ||||
Other Borrowed funds | - | - | - | - | - | ||||
- | 7,990,399,165 | - | 7,990,399,165 | 7,527,533,959 | |||||
The Following is a list of financial investments whose carrying amount is a reasonable approximation of fair value. Because for example, they are short-term in nature or reprice to current market rates Frequently:
Assets :
Cash in Hand and Balances with Banks Financial Investments at amortised cost Financial Assets
Liabilities
Due to Banks
Financial Liabilities
Carrying amount
30-09-2024 31-03-2024
(Unaudited) (Audited)
195,079,149 229,038,463
1,019,335,446 2,130,830,049
8,097,532 7,310,913
114,582,912 20,741,963
442,638,391 514,740,519
UB FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
- The accounting policies followed in preparing the above Interim Financial Statements are the same as those disclosed in our Annual Report for the year ended 31 March 2024.
- These Interim Financial Statements have been prepared in compliance with the requirements of Sri Lanka Accounting Standards - LKAS 34 Interim Financial Reporting.
- There have been no material events occurring after the reporting date that require adjustments to or disclosure in the Financial Statements.
- There is no commitments and contigencies as at 30 September 2024 (31.03.2024- Nil)
- Rights Issue Fund Utilisation
Proposed | Amount | % of | Clarification if | |||||
Amount | Allocated | Amounts | ||||||
Date of | % of | Utilisation | not Fully Utilised | |||||
Objective | Allocated | from | Utilised | |||||
Objective as per Circular | Utilisation | Total | against | including where | ||||
Number | as per Circular | Proceeds | (LKR | |||||
(LKR Mn) | as per | (LKR Mn) | Proceeds | Mn) (B) | Allocation | the funds are | ||
Circular | (B/A) | invested* | ||||||
(A) | ||||||||
1 | To expand the Company's loan book in the ordinary course of | 254.28 | 26th | 254.28 | 100% | 254.28 | 100% | |
business | September | |||||||
2024 | ||||||||
2 | Company will invest any proceeds not utilised for the | - | - | - | - | - | - | |
aforementioned objective, the Company would opt to invest | ||||||||
the same during the interim period in government securities at | ||||||||
zero default risk and/or fixed deposits in Licensed Commercial | ||||||||
Banks and money market funds generating a minimum return | ||||||||
equivalent to the prevailing overnight REPO. | ||||||||
UB FINANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
6 Information on Ordinary Shares | ||
For the period ended | ||
30.09.2024 | 30.09.2023 | |
(i) Share price | ||
Highest | 0.7 | 1.4 |
Lowest | 0.5 | 0.8 |
Last Traded | 0.7 | 0.8 |
Closing Price | 0.7 | 0.8 |
- Total number of shares as at 30 September 2024 - 3,178,485,367
- Total number of shareholders as at 30 September 2024 - 4,974
- Float adjusted market capitalization Rs.223,698,829.90
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
- The public shareholding as at 30 September 2024 is 10.054% comprising of 4,971 shareholders
- Directors' sharholding as at 30 September 2024
Name of the Director | No of Shares | % Holding | ||
Mr. Malay Mukherjee | - | 0.00% | ||
Mr. Sanjay Prokhrel | - | 0.00% | ||
Mr. Mohan Ratnayake | - | 0.00% | ||
Mr. Sabry Ghouse | - | 0.00% | ||
Mr. Raj Moahan Balendra | - | 0.00% | ||
Mr. Jayendra Arulraj Setukavalar | - | 0.00% | ||
Prof. Ajantha Dharmasiri | - | 0.00% | ||
Mr. Ransith Karunaratne | 62,300 | 0.00% | ||
(vi) Twenty largest shareholders as at 30 September 2024 | ||||
No of Shares | % Holding | |||
1. | Union Bank of Colombo PLC | 2,858,791,010 | 89.94% | |
2. | Mr. D.A.J. Warnakulasuriya | 51,400,345 | 1.62% | |
3. | Mr O.I. Sheunn | 14,605,884 | 0.46% | |
4. | Mr. S. Ramanathan | 14,441,796 | 0.45% | |
5. | Mr. A.N. Handunpathirana | 11,361,004 | 0.36% | |
6. | Associated Electrical Corporation Ltd | 7,551,017 | 0.24% | |
7. | Mr. K.C. Vignarajah | 7,495,990 | 0.24% | |
8. | Mr. A.P. Arumugampillai | 7,000,000 | 0.22% | |
9. | LOLC Finance PLC/C.B.R. Fernando | 6,923,423 | 0.22% | |
10. | Mr. A.M. Irfan | 5,878,992 | 0.18% | |
11. | Sampath Bank PLC/Ceylon Capital One Investment Private Limited | 4,248,102 | 0.13% | |
12. | People's Leasing and Finance PLC/Suhada Gas Distributors (Pvt) Ltd | 4,052,189 | 0.13% | |
13. | Seylan Bank PLC/Mr. Manikkavasagar Thiyagaraja | 3,436,441 | 0.11% | |
14. | Mr. V.R.A. Perera | 3,255,501 | 0.10% | |
15. | Citizens Development Business Finance PLC/N.Anoshan | 3,000,000 | 0.09% | |
16. | Mr. M.F. Cader | 2,399,488 | 0.08% | |
17. | Mr. W.A.S.P. De Saram | 2,063,638 | 0.06% | |
18. | Mr. N.W.V. Ruwan Kumara | 1,985,300 | 0.06% | |
19. | Mr. S.W.S. Lakmal | 1,958,024 | 0.06% | |
20. | Mr. M.G.Y.A. Udawatte | 1,752,458 | 0.06% | |
Others | 164,884,765 | 5.19% | ||
3,178,485,367 | 100.00% | |||
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