First Capital : PROVISIONAL FINANCIAL STATEMENTS FOR THE QUARTER ENDED 30TH SEPTEMBER 2022

A Janashakthi Group Company

PROVISIONAL FINANCIAL STATEMENTS

Quarter ended

30 September 2022

FIRST CAPITAL HOLDINGS PLC

REVIEW OF OPERATIONS

First Capital Holdings PLC (the Group) recorded a Profit after Tax of Rs. 823Mn for the six months ended 30 September 2022 compared to Loss after Tax of Rs. 303Mn in the corresponding period of the previous year.

The Primary Dealer division reported a Profit after Tax of Rs. 1.1Bn for the six months ended 30 September 2022

(2021/22 - Loss after Tax of Rs. 414Mn). The Results include net interest income of Rs. 919Mn and a trading gain on sale of government securities amounting to Rs. 281Mn (2021/22 - Net interest income of Rs. 242Mn and a trading loss of Rs. 470Mn were included).

As at 30 September 2022, the Business division's Held to Maturity portfolio reflected a fair valuation loss of Rs. 945Mn which is not accounted for in the provisional financial statements since the amortised cost basis has been adopted in valuing the said investment as per the accounting standard on financial instruments (SLFRS 9).

We are operating in a challenging business environment due to the prevailing economic conditions. The impact of a potential local debt restructuring is also a significant concern.

The Corporate Finance division reported a Loss after Tax of Rs. 375Mn for the six months ended 30 September 2022 (2021/22 - Rs. 15Mn). Fair valuation loss on dealing securities amounting to Rs. 290Mn mainly resulted in the Loss for the period under review.

The Wealth Management division reported a Profit after Tax of Rs. 21Mn for the six months ended 30 September 2022 (2021/22 - Rs. 47Mn). The assets under management of the division stood at Rs. 36Bn as of 30 September 2022 (31 March 2022 - Rs. 41.2Bn).

The Stock Brokering division recorded a Profit after Tax of Rs. 67Mn for the six months ended 30 September 2022 (2021/22 - Rs. 94Mn).

(Sgd.)

Dilshan Wirasekara

Director/Chief Executive Officer

Provisional Financial Statements	FIRST CAPITAL HOLDINGS PLC
Quarter ended 30 September 2022	1

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

			Group
For the period		July ~ September	April ~ September
		2022	2021	2022	2021
	Notes	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Income		3,530,597	346,352	5,595,040	1,061,311
Direct income		3,488,872	286,283	5,506,950	975,399
Direct expenses		(2,632,226)	(426,407)	(4,075,441)	(905,619)
Net trading income/ (expense)		856,646	(140,124)	1,431,509	69,780
Other income	1	41,725	60,069	88,090	85,912
Gain/ (Loss) on fair valuation of financial assets		297,064	(244,745)	64,653	(192,825)
recognised through profit or loss measured at fair value
		1,195,435	(324,800)	1,584,252	(37,133)
Operating expenses
Administrative expenses		(139,930)	(131,120)	(272,437)	(240,963)
Sales and distribution expenses		(3,626)	(7,641)	(7,748)	(9,692)
Other operating expenses		(142,244)	(18,748)	(213,695)	(30,651)
(Provision)/ Reversal for Impairment of financial assets		(17,013)	(628)	(18,171)	2,270
at amortised cost
		(302,813)	(158,137)	(512,051)	(279,036)
Profit/ (loss) before tax		892,622	(482,937)	1,072,201	(316,169)
Income tax (expense)/ reversal	2	(165,332)	44,133	(249,057)	13,071
Profit/ (loss) for the period		727,290	(438,804)	823,144	(303,098)
Other comprehensive income
Items that will never be reclassified to profit or loss		-	-	-	-
Items that are or may be reclassified to profit or loss		-	-	-	-
Other comprehensive income for the period		-	-	-	-
Total comprehensive income/ (loss) for the period		727,290	(438,804)	823,144	(303,098)
Profit/ (Loss) attributable to:
Equity holders of the parent		653,624	(413,150)	706,341	(280,718)
Non - controlling interest		73,666	(25,654)	116,803	(22,380)
		727,290	(438,804)	823,144	(303,098)
Total comprehensive income/ (loss) attributable to:
Equity holders of the parent		653,624	(413,150)	706,341	(280,718)
Non - controlling interest		73,666	(25,654)	116,803	(22,380)
		727,290	(438,804)	823,144	(303,098)
Basic earnings/ (loss) per share (Rs.)	3	1.61	(1.02)	1.74	(0.69)

Figures in bracket indicate deductions.

Note: All values are in Rupees '000 unless otherwise stated.

Provisional Financial Statements	FIRST CAPITAL HOLDINGS PLC
Quarter ended 30 September 2022	2

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

			Company
For the period		July ~ September	April ~ September
		2022	2021	2022	2021
	Notes	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Income		919,472	236,850	1,583,037	471,016
Direct income		919,472	236,834	1,583,037	471,000
Direct expenses		(742,410)	(187,800)	(1,249,755)	(368,581)
Net trading income		177,062	49,034	333,282	102,419
Other income	1	-	16	-	16
Loss on fair valuation of financial assets recognised		(83,467)	(55,150)	(210,776)	(55,150)
through profit or loss measured at fair value
		93,595	(6,100)	122,506	47,285
Operating expenses
Administrative expenses		(18,869)	(16,367)	(38,498)	(31,398)
Sales and distribution expenses		(587)	(2,664)	(981)	(3,574)
Other operating expenses		(25,500)	(12,990)	(46,946)	(16,652)
(Provision)/ Reversal for Impairment of financial assets		(1,392)	(386)	370	1,275
at amortised cost
		(46,348)	(32,407)	(86,055)	(50,349)
Operating profit/ (loss)		47,247	(38,507)	36,451	(3,064)
Share of profit/ (loss) from equity accounted		624,402	(380,345)	690,623	(273,631)
investee  (net of tax)
Profit/ (loss) before tax		671,649	(418,852)	727,074	(276,695)
Income tax (expense)/ reversal	2	(18,025)	5,702	(20,733)	(4,023)
Profit/ (loss) for the period		653,624	(413,150)	706,341	(280,718)
Other comprehensive income
Items that will never be reclassified to profit or loss		-	-	-	-
Items that are or may be reclassified to profit or loss		-	-	-	-
Other comprehensive income for the period		-	-	-	-
Total comprehensive income/ (loss) for the period		653,624	(413,150)	706,341	(280,718)
Basic earnings/ (loss) per share (Rs.)	3	1.61	(1.02)	1.74	(0.69)

Figures in bracket indicate deductions.

Note: All values are in Rupees '000 unless otherwise stated.

Provisional Financial Statements	FIRST CAPITAL HOLDINGS PLC
Quarter ended 30 September 2022	3

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		Group		Company
	As at	30 September	31 March	30 September	31 March
		2022	2022	2022	2022
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
ASSETS
Cash at banks and in hand	100,975	526,987	21,035	39,417
Derivative financial instruments	544,410	5,190	-	-
Financial assets recognised through profit or loss -	39,102,766	30,066,729	3,104,414	3,220,443
measured at fair value
Financial assets - fair value through other comprehensive income	34,635	34,635	-	-
Financial assets at amortised cost	20,439,656	9,059,275	11,137,996	8,784,857
Trade and other receivables	1,125,942	1,423,170	7,719	10,161
Amounts due from related companies	796	750	13,420	8,473
Non - current assets held for sale	42,416	42,416	-	-
Taxes receivable	65,982	72,126	35,976	56,811
Investment in subsidiary	-	-	3,823,305	3,482,855
Deferred tax asset	35,541	122,497	1,086	986
Property, plant and equipment and right of use assets	33,691	38,322	18,333	17,437
Intangible assets	120,065	122,532	4,005	5,281
TOTAL ASSETS	61,646,875	41,514,629	18,167,289	15,626,721
LIABILITIES
Bank overdrafts	966,165	1,245,741	912,978	1,245,696
Derivative financial instruments	236,140	2,622	-	-
Securities sold under re-purchase agreements	41,145,489	23,799,838	-	-
Short term borrowings	9,574,193	8,139,888	9,694,614	8,250,158
Amounts due to related companies	6,970	5,571	1,521	2,096
Trade and other payables	770,066	959,271	52,668	47,543
Taxes payable	158,832	78,132	-	-
Long term borrowings	1,001,764	-	1,001,764	-
Borrowings on debentures	2,875,399	2,780,890	2,125,641	2,030,553
Retirement benefit obligations	41,503	37,404	-	-
TOTAL LIABILITIES	56,776,521	37,049,357	13,789,186	11,576,046
EQUITY
Stated capital	227,500	227,500	227,500	227,500
Risk reserve	1,338,225	1,239,478	1,338,225	1,239,478
Retained earnings	3,110,335	2,881,654	3,110,335	2,881,654
Fair valuation reserve	(297,957)	(297,957)	(297,957)	(297,957)
Equity attributable to the equity holders of the parent	4,378,103	4,050,675	4,378,103	4,050,675
Non- controlling interest	492,251	414,597	-	-
TOTAL EQUITY	4,870,354	4,465,272	4,378,103	4,050,675
TOTAL EQUITY AND LIABILITIES	61,646,875	41,514,629	18,167,289	15,626,721
Net asset per share (Rs.)	10.81	10.00	10.81	10.00
Note: All values are in Rupees '000 unless otherwise stated.
The above figures are subject to audit.

These consolidated financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

Mangala Jayashantha

Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these consolidated financial statements.

Dilshan Wirasekara	Dinesh Schaffter
Director/ Chief Executive Officer	Managing Director

14 November 2022

Colombo

Provisional Financial Statements	FIRST CAPITAL HOLDINGS PLC
Quarter ended 30 September 2022	4