Ub Finance PlcCSELK: UBF.N0000

Quarterly Financial Statement for the period ending 30/06/24

· Issued by Ub Finance Plc

INTERIM

FINANCIAL

STATEMENTS

30TH JUNE 2024

UB FINANCE PLC

STATEMENT OF PROFIT & LOSS

For the Three Months Ended

30.06.2024

30.06.2023

Variance

Rs.

Rs.

%

(Unaudited)

(Unaudited)

Income

521,202,809

577,823,322

-10%

Interest Income

481,833,590

540,167,364

-11%

Interest Expenses

(320,451,923)

(366,564,721)

13%

Net Interest Income

161,381,667

173,602,643

-7%

-

Fee and Commission Income

18,054,015

13,395,602

35%

Fee and Commission Expenses

(5,591,800)

(924,100)

-505%

Net Fee and Commission Income

12,462,215

12,471,502

0%

-

Other Operating Income (Net)

21,315,204

24,260,356

-12%

Total Operating Income

195,159,086

210,334,501

-7%

-

Impairment Charge for Loans and Advances and Other Assets

(14,307,405)

(37,521,613)

62%

Net Operating Income

180,851,681

172,812,888

5%

-

Staff Costs

(85,934,830)

(79,781,326)

-8%

Depreciation of Property, Plant and Equipment

(17,709,945)

(14,458,925)

-22%

Amortisation of Intangible Assets

(366,576)

(431,594)

15%

Other Expenses

(84,316,075)

(59,960,553)

-41%

Operating Profit before Value Added Tax on Financial Services

(7,475,745)

18,180,490

(VAT on FS)

-141%

Value Added Tax on Financial Services (VAT on FS)

(11,061,419)

(14,840,064)

25%

Social Security Contribution Levy (SSCL)

(1,536,307)

(2,061,120)

25%

Profit/(Loss) Before Taxation

(20,073,471)

1,279,306

-1669%

Tax Expense

(1,156,947)

(52,503)

-100%

Profit/(Loss) for the Year

(21,230,418)

1,226,803

-1831%

Earnings per Share: Basic

(0.01)

0.00

UB FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended

30.06.2024

30.06.2023

Variance

Rs.

Rs.

%

(Unaudited)

(Unaudited)

Profit for the Year

(21,230,418)

1,226,803

-1831%

Other Comprehensive Income to be reclassified to Income Statement

-

-

0%

Other Comprehensive Income not to be reclassified to Income Statement

Gains on revaluation of land and buildings

-

-

0%

Deferred Tax Charge impact on revaluation reserve

-

-

0%

Deferred Tax Charge impact on revaluation reserve due to tax rate change

-

-

0%

Gain on creating Investment in Shares

-

-

0%

Deferred Tax Charge on creating Investment in Shares

-

-

0%

Actuarial gains /(losses) on Post Employment Liability

-

-

0%

Deferred Tax (Charge) /Reversal impact on above

-

-

0%

Other Comprehensive Income for the Year, net of taxes

-

-

0%

Total Comprehensive Income for the Year

(21,230,418)

1,226,803

-1831%

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

-

-

-

-

-

-

-

Other Comprehensive Income (Net of deferred tax)

-

-

-

-

-

-

-

Profit for the period

-

-

-

-

-

1,226,803

1,226,803

Transfer to regulatory loss allowance reserve

-

-

-

-

167,793,045

(167,793,045)

-

Balance as at 30 June 2023 (Unaudited)

3,016,482,247

71,987,751

16,452,082

49,029,226

260,342,071

(718,390,966)

2,695,902,411

Share issue

55,000,000

-

-

-

-

-

55,000,000

Other Comprehensive Income (Net of deferred tax)

-

-

6,758,143

46,660,250

-

95,642

53,514,035

Profit for the year

-

-

-

-

-

245,415

245,415

Transfer to regulatory loss allowance reserve

-

-

-

-

20,678,590

(20,678,590)

-

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

-

-

-

-

-

(21,230,418)

(21,230,418)

Transfer to regulatory loss allowance reserve

-

-

-

-

(8,848,091)

8,848,091

-

Balance as at 30 June 2023 (Unaudited)

3,325,761,076

72,061,362

23,210,225

95,689,476

272,172,570

(751,184,437)

3,037,710,273

UB FINANCE PLC

STATEMENT OF CASH FLOWS

For the period ended

30.06.2024

30.06.2023

Rs.

Rs.

(Unaudited)

(Unaudited)

Cash Flow from Operating Activities

Interest Received

566,891,701

649,102,550

Fees and Commission Receipts

18,054,015

4,372,230

Interest Paid

(335,731,784)

(451,646,757)

Fees and Commission Paid

(5,591,800)

(233,138)

Payments on Other Operating Activities

(180,429,801)

(155,605,763)

Operating Profit/ (loss) before changes in Operating Assets and

63,192,331

45,989,121

Liabilities

(Increase) /Decrease in Operating Assets:

Funds Advanced to Customers

(289,942,577)

283,473,041

Others

(59,087,815)

56,592,097

Increase in Operating Liabilities:

Due to banks and other customers

(122,551,368)

869,633,831

Others

(56,891,078)

56,913,425

Net Cash used in Operating Activities before Income Tax

(465,280,507)

1,312,601,515

Retiring Gratuity paid

(90,000)

(965,000)

Income Tax

-

-

Net Cash used in Operating Activities

(465,370,507)

1,311,636,515

Cash Flow from Investing Activities

Dividends Received

-

-

Purchase of Intangible Assets

-

-

Purchase of Property and Equipment

(13,582,892)

(13,754,265)

Proceeds from Sale of Property and Equipment

-

-

Proceeds from Sale of Real Estate

-

7,956,000

Net Cash used in Investing Activities

(13,582,892)

(5,798,265)

Cash Flow from Financing Activities

Loans obtained during the year

-

-

Loans settled during the year

-

(455,041,855)

Issues of Shares

254,278,829

-

Net Cash generated from Financing Activities

254,278,829

(455,041,855)

Net (Decrease) / increase in Cash and Cash Equivalents

(224,674,570)

850,796,395

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

2,114,451,979

2,193,802,282

Reconciliation of Cash and Cash Equivalents

Cash in Hand

32,532,470

52,916,099

Balances with Banks (Net of Overdraft)

426,486,385

341,144,186

Financial Investments at amortised cost

1,655,433,124

1,799,741,997

2,114,451,979

2,193,802,282

UB FINANCE PLC

SEGMENT INFORMATION

586,255

8,842,019,357

86,181,121

14,282,977

19,678,891

17,404,200

137,547,189

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

30.06.2024

30.06.2023

30.06.2024

30.06.2023

30.06.2024

30.06.2023

30.06.2024

30.06.2023

30.06.2024

30.06.2023

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Interest Income

298,925,127

279,282,165

16,036,661

18,769,044

68,885,080

98,592,131

97,986,722

143,524,024

481,833,590

540,167,364

Interest Expenses

(200,768,005)

(222,638,289)

(33,273,700)

(40,108,384)

(45,844,051)

(49,663,103)

(40,566,167)

(54,154,944)

(320,451,923)

(366,564,721)

Net Interest Income

98,157,122

56,643,875

(17,237,039)

(21,339,340)

23,041,029

48,929,028

57,420,555

89,369,080

161,381,667

173,602,643

Fee and Commission Income

11,971,941

8,559,867

811,892

1,857,542

5,120,259

2,978,194

149,923

-

18,054,015

13,395,602

Fee and Commission Expenses

(4,040,800)

(924,100)

-

-

-

-

(1,551,000)

-

(5,591,800)

(924,100)

Net Fee and Commission Income

7,931,141

7,635,767

811,892

1,857,542

5,120,259

2,978,194

(1,401,077)

-

12,462,215

12,471,502

Other Operating Income (Net)

2,137,114

8,516,194

(186,030)

12,820,892

1,723,989

1,301,993

17,640,131

1,621,277

21,315,204

24,260,356

Total Operating Income

108,225,377

72,795,836

(16,611,177)

(6,660,906)

29,885,277

53,209,214

73,659,609

90,990,357

195,159,086

210,334,501

Impairment Charge for Loans and Advances and Other

Assets

(14,871,361)

(24,256,431)

6,061,522

(11,219,693)

(2,177,236)

(5,827,562)

(3,320,330)

3,782,073

(14,307,405)

(37,521,613)

Net Operating Income

93,354,016

48,539,405

(10,549,656)

(17,880,599)

27,708,041

47,381,652

70,339,280

94,772,430

180,851,681

172,812,888

Other Expenses

(104,964,995)

(84,947,835)

(18,687,036)

(15,444,258)

(21,957,193)

(19,079,702)

(24,641,680)

(20,270,085)

(170,250,904)

(139,741,879)

Depreciation and Amortisation

(11,121,863)

(9,044,565)

(1,974,277)

(1,629,382)

(2,367,430)

(2,017,538)

(2,612,951)

(2,199,034)

(18,076,521)

(14,890,519)

Operating Profit before Taxes

(22,732,842)

(45,452,995)

(31,210,969)

(34,954,239)

3,383,418

26,284,413

43,084,649

72,303,312

(7,475,744)

18,180,490

-

-

Taxes

-

-

-

-

-

-

(13,754,673)

(16,953,687)

(13,754,673)

(16,953,687)

Profit/(Loss) for the Period

(22,732,842)

(45,452,995)

(31,210,969)

(34,954,239)

3,383,418

26,284,413

29,329,975

55,349,625

(21,230,418)

1,226,803

UB FINANCE PLC

FAIR VALUE MEASUREMENT

As at 30-06-2024 (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

-

-

173,568,202

173,568,202

-

-

205,080,916

205,080,916

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

-

-

173,734,247

173,734,247

-

-

205,246,961

205,246,961

Fair value of financial assets and liabilities not carried at fair value

As at 30-06-2024 (Unaudited)

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

-

8,927,711,350

-

8,927,711,350

8,037,247,445

-

8,927,711,350

-

8,927,711,350

8,037,247,445

Financial Liabilities

Due to other Customers

-

7,780,331,779

-

7,780,331,779

7,386,168,102

Other Borrowed Funds

-

-

-

-

-

-

7,780,331,779

-

7,780,331,779

7,386,168,102

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

30-06-202431-03-2024

(Unaudited) (Audited)

476,812,580 229,038,463

1,655,433,124 2,130,830,049

10,411,229 7,310,913

17,793,725 20,741,963

417,377,062 514,740,519

UB FINANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

  1. 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.
  2. These Interim Financial Statements have been prepared in compliance with the requirements of Sri Lanka Accounting Standards - LKAS 34 Interim Financial Reporting.
  3. There have been no material events occurring after the reporting date that require adjustments to or disclosure in the Financial Statements.
  4. There is no commitments and contigencies as at 30 June 2024 (2023- Rs.115.0Mn)
  5. 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%

0

0%

Since

the

rights

business

September

issue

was

2024

completed on June

28,

2024,

the

2

Company will invest any proceeds not utilised for the

utilization of funds

aforementioned objective, the Company would opt to invest the

will take place only

same during the interim period in government securities at zero

in

the

following

default risk and/or fixed deposits in Licensed Commercial

quarter.

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

30.06.2024

30.06.2023

(i) Share price

Highest

0.8

N/A

Lowest

0.6

N/A

Last Traded

0.7

N/A

Closing Price

0.6

N/A

  1. Total number of shares as at 30 June 2024 - 3,178,485,367
  2. Total number of shareholders as at 30 June 2024 - 4,871
  3. Float adjusted market capitalization Rs.191,735,854.20

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

  1. The public shareholding as at 30 June 2024 is 10.054% comprising of 4,867 shareholders
  2. Directors' sharholding as at 30 June 2024

Name of the Director

No of Shares

% Holding

Mr. Malay Mukherjee

-

0.00%

Mr. Sanjay Prokhrel

-

0.00%

Ms. Lisa Thomas

-

0.00%

Mr. Sabry Ghouse

-

0.00%

Mr. Raj Moahan Balendra

-

0.00%

Mr. Jayendra Arulraj Setukavalar

-

0.00%

Mr. Ransith Karunaratne

62,300

0.00%

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