Central Finance : Annual Report 21/22

VISION

Central Finance shall be the first choice for progressive customers in delivering innovative financial solutions.

MISSION

To be the leader in our industry, conducting business with responsibility, using our expertise in helping customers grow and prosper whilst creating lasting value for our shareholders.

CORPORATE VALUES

Customer Centered - We aim to build long term relationships with our customers,

We believe in providing consistently high standards of service and integrity

Unyielding Integrity - We have a hard earned reputation of integrity and reliability which we shall safeguard at all times. Therefore trust, confidence, prudence and fairness in dealing with our customers, members of the public will be absolute and will form an integral part of our business philosophy

Superior Service - We believe in providing fast, quality service that earn customer satisfaction which results in customer retention

Exceptional Performance - We set ambitious goals, yet we understand accountability to achieve these goals. We are committed to perform exceptionally well on behalf of our stakeholders

Our People are our company - The ability and commitment of our people are central to the success of the company. Therefore, we help them enhance their skills, recognise and reward accomplishment, treat them with fairness and consideration. In return we expect every individual to take responsibility for his/her actions

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Contents

2

4

7

14

19

41

91

Financial Highlights

Chairman's Statement

Managing

Director's

Report

Board of

Directors

Management

Discussion

and Analysis

Corporate Governance

Financial

Reports

Financial Highlights	2
Chairman's Statement	4
Managing Director's Report	7
Board of Directors	14
Corporate Management Team	18
Management Discussion and Analysis	19
Financial Review	25
Branch Network	30
Risk Management Report	34
Corporate Governance	41
Corporate Social Responsibility	84
Financial Calendar 2021/22	90
Annual Report of the Board of Directors	92
Nomination Committee Report	99
Related Party Transactions Review
Committee Report	100
Directors' Responsibility for Financial Reporting	101
Remuneration Committee Report	102
Integrated Risk Management Committee Report	103
Audit Committee Report	104
Directors' Statement on Internal Control	107
Independent Assurance Report	109
Independent Auditors' Report	110
Income Statement	116
Statement of Profit or Loss and Other
Comprehensive Income	117
Statement of Financial Position	118
Statement of Changes in Equity	119
Statement of Cash Flows	121
Notes to the Financial Statements	122
Directors' Interest in Contracts with the Company	245
Group Companies	246
Group Value Added Statement	249
Quarterly Statistics - Company	250
Information on Shares and Debentures	251
Decade at a Glance	254
Income Statement in US Dollars	256
Statement of Financial Position in US Dollars	257
Glossary of Financial Terms	258
Notice of Meeting	260
Form of Proxy	261
Investor Feedback Form	263

Financial Highlights

	Group		Company
	2021/22	2020/21	2021/22	2020/21
	Rs. Mn.	Rs. Mn.	Rs. Mn.	Rs. Mn.
Financial performance
Income	24,580	23,994	17,501	19,406
Profit before income tax	9,649	6,804	7,468	5,015
Income tax	2,373	1,024	2,113	879
Profit after income tax	7,276	5,780	5,355	4,136
Net profit attributable to equity holders of the parent	7,003	5,544	5,355	4,136
Gross dividends	-	-	796	784
Financial position
Total assets	115,606	114,397	100,040	101,594
Loans and advances to customers	58,626	64,515	58,629	64,522
Deposits	48,715	52,152	49,024	52,587
Funds attributable to equity holders of the parent	55,835	50,052	44,466	39,951
Non-controlling interest	1,635	1,453	-	-
Information per ordinary share
Earnings Rs.	30.80	24.39	23.56	18.19
Dividends Rs.	-	-	3.50	3.50
Market value Rs.	-	-	68.10	80.70
Net assets value per share Rs.	245.59	220.15	195.58	175.72
Ratios
Dividend cover (times)	-	-	6.73	5.20
Dividend pay out (%)	-	-	14.86	18.96
Shareholders' funds to deposits	-	-	90.70	75.97
Core capital ratio % (Tier 1)	-	-	44.32	32.42
Total capital ratio % (Tier 1 & 2)	-	-	44.89	32.88

26%	15%
EPS GROWTH	DIVIDEND PAYOUT
44.32%	44.89%
TIER I CAPITAL RATIO	TOTAL CAPITAL RATIO

2	| Central Finance Company PLC > Annual Report 2021 / 22

Total Assets

Rs. Mn

1.06%

110,258

117,795

114,397

115,606

18/19 19/20 20/21 21/22

Total Deposit

Rs. Mn

-6.59%

60,000
50,000	45,149	52,913	52,152	48,715
40,000
30,000
20,000
10,000
0
	18/19	19/20	20/21	21/22

Shareholders' Funds
Rs. Mn			+11.55%
60000	40,471	44,326	50,052	55,835
50000
40000
30000
20000

10000

0

18/19 19/20 20/21 21/22

Employees

1,741

20/21: 1,706

19/20 : 1,892

Branches

103

20/21: 103

19/20: 103

Lending

Customers

83,319

20/21: 107,546

19/20: 139,862

Depositors

173,504

20/21: 173,370

19/20: 174,953

Annual Report 2021 / 22< Central Finance Company PLC |

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