Central Finance : Interim Financial statements as at 30 09 2022

Central Finance Company PLC

INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED

30TH SEPTEMBER 2022

CENTRAL FINANCE COMPANY PLC
INCOME STATEMENT
	Group		Company
For the six months ended 30th September	2022	2021		2022	2021
	Unaudited	Unaudited	Increase	Unaudited	Unaudited Increase
			(decrease)			(decrease)
	Rs.'000	Rs.'000	%	Rs.'000	Rs.'000	%
Income	11,516,349	11,556,966	(0.35)	9,058,792	8,237,942	9.96
Interest income	8,286,048	6,640,852	24.77	8,078,247	6,613,848	22.14
Interest expenses	(2,126,241)	(1,962,026)	8.37	(2,144,929)	(1,980,948)	8.28
Net interest income	6,159,807	4,678,826	31.65	5,933,318	4,632,900	28.07
Net income from financial instruments at FVTPL	19,660	484,374	(95.94)	1,811	418,688	(99.57)
Net other revenue	1,092,428	708,334	54.22	-	-	-
Operating lease income	515,129	519,518	(0.84)	516,974	521,670	(0.90)
Other income	377,452	612,360	(38.36)	461,760	683,736	(32.47)
Total operating income	8,164,476	7,003,412	16.58	6,913,863	6,256,994	10.50
Impairment and other credit losses	(438,735)	(1,565,976)	(71.98)	(306,821)	(1,565,735)	(80.40)
Net Operating Income	7,725,741	5,437,436	42.08	6,607,042	4,691,259	40.84
Operating expenses
Personnel expenses	(1,338,298)	(1,247,932)	7.24	(1,161,088)	(1,077,439)	7.76
Premises, equipment, establishment and other expenses	(1,554,093)	(1,078,279)	44.13	(1,105,080)	(972,262)	13.66
	(2,892,391)	(2,326,211)	24.34	(2,266,168)	(2,049,701)	10.56
Operating profits before share of profit of equity accounted investees	4,833,350	3,111,225	55.35	4,340,874	2,641,558	64.33
Share of profit of equity accounted investees, net of tax	883,049	679,620	29.93	-	-	-
Operating profit before taxes on financial services	5,716,399	3,790,845	50.79	4,340,874	2,641,558	64.33
Taxes on financial services	(754,118)	(415,708)	81.41	(754,118)	(415,708)	81.41
Profit before tax	4,962,281	3,375,137	47.02	3,586,756	2,225,850	61.14
Income tax expense	(1,123,217)	(793,105)	41.62	(1,051,108)	(682,456)	54.02
Profit for the period	3,839,064	2,582,032	48.68	2,535,648	1,543,394	64.29
Profit attributable to :
Equity holders of the parent	3,679,399	2,417,352	52.21	2,535,648	1,543,394	64.29
Non-controlling interest	159,665	164,680	(3.05)	-	-	-
Profit for the period	3,839,064	2,582,032	48.68	2,535,648	1,543,394	64.29
Basic and diluted earnings per share -Rs.	16.18	10.63	52.21
The annexed notes form an integral part of these interim financial statements.
CENTRAL FINANCE COMPANY PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
	Group		Company
For the six months ended 30th September	2022	2021		2022	2021
			Increase			Increase
	Unaudited	Unaudited	(decrease)	Unaudited	Unaudited	(decrease)
	Rs.'000	Rs.'000	%	Rs.'000	Rs.'000	%
Profit for the period	3,839,064	2,582,032	48.68	2,535,648	1,543,394	64.29
Other comprehensive income/(expense) to be reclassified to income statement
Fair value gain/(loss) on debt securities at fair value through other comprehensive income
Share of equity accounted investees, net of tax	326,127	(117,565)	377.40	-	-	-
Total other comprehensive income/(expense) to be reclassified to income statement	326,127	(117,565)	377.40	-	-	-
Other comprehensive income/(expense) not to be reclassified to income statement
Actuarial gains / (losses) on defined benefit plans
Share of equity accounted investees, net of tax	-	11,290	-	-	-	-
Total other comprehensive income/(expense) not to be reclassified to income statement	-	11,290	-	-	-	-
Other comprehensive income/(expense) for the period (net of tax)	326,127	(106,275)	406.87	-	-	-
Total comprehensive income for the period	4,165,191	2,475,757	68.24	2,535,648	1,543,394	64.29
Total comprehensive income Attributable to:
Equity holders of the parent	4,005,526	2,311,077	73.32	2,535,648	1,543,394	64.29
Non-controlling interest	159,665	164,680	(3.05)	-	-
Total comprehensive income for the period	4,165,191	2,475,757	68.24	2,535,648	1,543,394	64.29

The annexed notes form an integral part of these interim financial statements.

CENTRAL FINANCE COMPANY PLC
INCOME STATEMENT
	Group		Company
For the three months ended 30th September	2022	2021		2022	2021
	Unaudited	Unaudited	Increase	Unaudited	Unaudited Increase
			(decrease)			(decrease)
	Rs.'000	Rs.'000	%	Rs.'000	Rs.'000	%
Income	6,041,654	6,220,326	(2.87)	4,801,435	4,282,933	12.11
Interest income	4,347,643	3,321,005	30.91	4,221,663	3,299,636	27.94
Interest expenses	(1,233,850)	(916,148)	34.68	(1,242,713)	(925,657)	34.25
Net interest income	3,113,793	2,404,857	29.48	2,978,950	2,373,979	25.48
Net income from financial instruments at FVTPL	108,316	227,481	(52.38)	54,172	201,464	(73.11)
Net other revenue	539,985	422,454	27.82	-	-	-
Operating lease income	252,101	263,072	(4.17)	253,024	264,302	(4.27)
Other income	146,663	451,230	(67.50)	272,576	517,531	(47.33)
Total operating income	4,160,858	3,769,094	10.39	3,558,722	3,357,276	6.00
Impairment and other credit losses	104,977	(202,896)	(151.74)	229,579	(202,581)	(213.33)
Net Operating Income	4,265,835	3,566,198	19.62	3,788,301	3,154,695	20.08
Operating expenses
Personnel expenses	(687,350)	(624,477)	10.07	(595,346)	(535,159)	11.25
Premises, equipment, establishment and other expenses	(598,936)	(554,347)	8.04	(565,800)	(500,874)	12.96
	(1,286,286)	(1,178,824)	9.12	(1,161,146)	(1,036,033)	12.08
Operating profits before share of profit of equity accounted investees	2,979,549	2,387,374	24.80	2,627,155	2,118,662	24.00
Share of profit of equity accounted investee, net of tax	589,303	356,979	65.08	-	-	-
Operating profit before taxes on financial services	3,568,852	2,744,353	30.04	2,627,155	2,118,662	24.00
Taxes on financial services	(445,814)	(303,783)	46.75	(445,814)	(303,783)	46.75
Profit before tax	3,123,038	2,440,570	27.96	2,181,341	1,814,879	20.19
Income tax expense	(621,341)	(586,228)	5.99	(611,048)	(512,935)	19.13
Profit for the period	2,501,697	1,854,342	34.91	1,570,293	1,301,944	20.61
Profit attributable to :
Equity holders of the parent	2,361,816	1,744,053	35.42	1,570,293	1,301,944	20.61
Non-controlling interest	139,881	110,289	26.83	-	-	-
Profit for the period	2,501,697	1,854,342	34.91	1,570,293	1,301,944	20.61
Basic and diluted earnings per share -Rs.	10.39	7.67	35.42
The annexed notes form an integral part of these interim financial statements.
CENTRAL FINANCE COMPANY PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
	Group		Company
For the three months ended 30th September	2022	2021		2022	2021
			Increase			Increase
	Unaudited	Unaudited	(decrease)	Unaudited	Unaudited	(decrease)
	Rs.'000	Rs.'000	%	Rs.'000	Rs.'000	%
Profit for the period	2,501,697	1,854,342	34.91	1,570,293	1,301,944	20.61
Other comprehensive income/(expense) to be reclassified to income statement
Fair value gain/(loss) on debt securities at fair value through other comprehensive income
Share of equity accounted investees, net of tax	10,071	(86,993)	111.58	-	-	-
Total other comprehensive income/(expense) to be reclassified to income statement	10,071	(86,993)	111.58	-	-	-
Other comprehensive income/(expense) not to be reclassified to income statement
Actuarial gains / (losses) on defined benefit plans
Share of equity accounted investees, net of tax	-	11,290	-	-	-	-
Total other comprehensive income/(expense) not to be reclassified to income statement	-	11,290
Other comprehensive income/(expense) for the period (net of tax)	10,071	(75,703)	113.30	-	-	-
Total comprehensive income for the period	2,511,768	1,778,639	41.22	1,570,293	1,301,944	20.61
Total comprehensive income Attributable to:
Equity holders of the parent	2,371,887	1,668,350	42.17	1,570,293	1,301,944	20.61
Non-controlling interest	139,881	110,289	26.83	-	-
Total comprehensive income for the period	2,511,768	1,778,639	41.22	1,570,293	1,301,944	20.61

The annexed notes form an integral part of these interim financial statements.

CENTRAL FINANCE COMPANY PLC

STATEMENT OF FINANCIAL POSITION

	Group		Company
As at	30.09.2022	31.03.2022	30.09.2022	31.03.2022
	Unaudited	Audited	Unaudited	Audited
	Rs.'000	Rs.'000	Rs.'000	Rs.'000
ASSETS
Cash and cash equivalents	1,036,997	1,199,681	675,270	697,234
Fair value through profit or loss financial assets	668,106	1,655,884	343,001	968,093
Securities bought under repurchase agreements	2,331,148	5,201,821	2,331,148	5,201,821
Financial assets at amortised cost- Debt and other financial instruments	23,800,522	22,310,336	22,152,634	20,933,341
Financial assets at amortised cost- Loans and receivables from customers	4,917,636	4,724,669	4,918,824	4,727,838
Financial assets at amortised cost- Net investment in leases and hire purchase	46,359,898	53,901,589	46,359,898	53,901,589
Trade receivables	856,644	1,589,992	-	-
Investments in subsidiaries	-	-	381,614	333,614
Investments in equity accounted investees	10,026,607	9,221,337	1,538,020	1,538,020
Inventories and other stocks	2,006,219	1,626,322	79,835	54,436
Investment properties	78,800	78,800	78,800	78,800
Property, plant and equipment	12,265,192	12,433,609	9,892,369	10,082,958
Right of use assets	427,638	457,818	512,386	559,516
Intangible assets	79,376	85,792	78,534	84,809
Current tax assets	27	1,127	-	-
Deferred tax asset	15,196	15,196	-	-
Other assets	1,060,770	1,096,721	1,005,352	873,135
Real estates held for sale	5,155	5,155	5,155	5,155
Assets held for sale	132	100	-	-
Total assets	105,936,063	115,605,949	90,352,840	100,040,359
LIABILITIES
Bank overdrafts	164,201	224,369	126,255	215,438
Financial liabilities at amortised cost -Deposits	40,434,075	48,715,464	40,712,404	49,024,182
Financial liabilities at amortised cost -Interest bearing borrowings	549,789	708,465	64,760	88,329
Lease liabilities	408,648	425,001	510,641	542,760
Employee benefit obligations	1,839,813	1,778,128	1,690,557	1,632,666
Current tax liabilities	957,938	1,773,149	867,024	1,597,150
Deferred tax liability	1,537,059	1,765,957	1,235,979	1,438,012
Other liabilities	1,458,187	2,744,039	773,537	1,035,641
Liabilities directly associated with the assets held for sale	1,142	1,224	-	-
Total liabilities	47,350,852	58,135,796	45,981,157	55,574,178
EQUITY
Stated capital	2,230,286	2,230,286	2,230,286	2,230,286
Statutory Reserve fund	2,715,000	2,715,000	2,715,000	2,715,000
Revaluation reserve	4,972,196	4,976,248	3,581,773	3,584,888
Fair value reserve	(72,365)	(398,492)	-	-
Loan loss reserve	920,000	920,000	920,000	920,000
General reserve	23,402,957	23,402,957	23,391,776	23,391,776
Retained earnings	22,631,264	21,989,452	11,532,848	11,624,231
Total equity, excluding non-controlling interest	56,799,338	55,835,451	44,371,683	44,466,181
Non-controlling interest	1,785,873	1,634,702	-	-
Total equity	58,585,211	57,470,153	44,371,683	44,466,181
Total liabilities and equity	105,936,063	115,605,949	90,352,840	100,040,359
Net asset value per share - Rs.	249.83	245.59	195.17	195.58
These financial statements have been prepared in compliance with the requirements of the Companies Act No.07 of 2007.
W.M.T.W.Weerasinghe
Chief Financial Officer
The Board of directors is responsible for the preparation and presentation of these financial statements.
Approved and signed for and on behalf of the board.
E. H. Wijenaike			A.K. Gunaratne
Managing Director			Deputy Managing Director / Deputy
			Chief Executive Officer

14'th November 2022 Colombo

The annexed notes form an integral part of these interim financial statements.

CENTRAL FINANCE COMPANY PLC
STATEMENT OF CHANGES IN EQUITY
For the six months ended 30th September 2022
			Attributable to equity holders of the company			Non-	Total
									controlling
Group	Stated	Statutory	Revaluation	Fair value	Loan loss	General	Retained	Total
	capital	reserve fund	reserve	reserve	reserve	reserves	earnings		interest
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 1st April 2021	1,961,597	2,371,000	5,102,431	27,538	920,000	23,402,957	16,266,493	50,052,016	1,453,433	51,505,449
Total comprehensive income
Profit for the six months ended 30th September 2021	-	-	-	-	-	-	2,417,352	2,417,352	164,680	2,582,032
Other comprehensive income	-	-	-	(117,565)	-	-	11,290	(106,275)	-	(106,275)
Total comprehensive income	-	-	-	(117,565)	-	-	2,428,642	2,311,077	164,680	2,475,757
Transactions with equity holders of the Company and other transfers , recognised directly in equity
Depreciation on revaluation surplus	-	-	(4,051)	-	-	-	4,051	-	-	-
Unclaimed dividends written back	-	-	-	-	-	-	18,848	18,848	262	19,110
Dividends - scrip/cash	268,689	-	-	-	-	-	(784,087)	(515,398)	(27,234)	(542,632)
Divestment of a subsidiary company	-	-	-	-	-	-	-	-	(68,062)	(68,062)
Total contributions from and distribution to equity holders and other transfers	268,689	-	(4,051)	-	-	-	(761,188)	(496,550)	(95,034)	(591,584)
Balance as at 30th September 2021	2,230,286	2,371,000	5,098,380	(90,027)	920,000	23,402,957	17,933,947	51,866,543	1,523,079	53,389,622
Balance as at 1st April 2022	2,230,286	2,715,000	4,976,248	(398,492)	920,000	23,402,957	21,989,452	55,835,451	1,634,702	57,470,153
Charge relating to Surcharge Tax	-	-	-	-	-	-	(2,587,313)	(2,587,313)	(2,031)	(2,589,344)
Balance as at 1st April 2022 (Adjusted)	2,230,286	2,715,000	4,976,248	(398,492)	920,000	23,402,957	19,402,139	53,248,138	1,632,671	54,880,809
Total comprehensive income
Profit for the six months ended 30th September 2022	-	-	-	-	-	-	3,679,399	3,679,399	159,665	3,839,064
Other comprehensive income	-	-	-	326,127	-	-	-	326,127	-	326,127
Total comprehensive income	-	-	-	326,127	-	-	3,679,399	4,005,526	159,665	4,165,191
Transactions with equity holders of the Company and other transfers , recognised directly in equity
Depreciation on revaluation surplus	-	-	(4,052)	-	-	-	4,052	-	-	-
Unclaimed dividends written back	-	-	-	-	-	-	384	384	385	769
Payment of forfeited dividends	-	-	-	-	-	-	(1)	(1)	-	(1)
Dividends - Cash	-	-	-	-	-	-	(454,709)	(454,709)	(6,848)	(461,557)
Total contributions from and distribution to equity holders and other transfers	-	-	(4,052)	-	-	-	(450,274)	(454,326)	(6,463)	(460,789)
Balance as at 30th September 2022	2,230,286	2,715,000	4,972,196	(72,365)	920,000	23,402,957	22,631,264	56,799,338	1,785,873	58,585,211