FIRST CAPITAL TREASURIES PLC PROVISIONAL FINANCIAL STATEMENTS
Quarter ended
31 December 2022
FIRST CAPITAL TREASURIES PLC
REVIEW OF OPERATIONS
First Capital Treasuries PLC (the Company) recorded a Profit after Tax of Rs. 1.9Bn for the nine months ended 31 December 2022 compared to Loss after Tax of Rs. 361Mn in the corresponding period of the previous year.
The Results include net interest income of Rs. 2,152Mn and a trading gain on sale of government securities amounting to Rs. 572Mn (2021/22 - Net interest income of Rs. 357Mn and a trading loss of Rs. 809Mn were included).
As of 31 December 2022, the Company's Held to Maturity portfolio (Government Securities) reflected a fair valuation loss of Rs. 1.15Bn 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 continuing concern.
The Company's investment in Government Securities portfolio (total) as of 31 December 2022 stood at Rs. 53.2Bn compared to Rs. 27.6Bn at the commencement of the financial year.
The Company was awarded a rating of "A" with stable outlook by Lanka Rating Agency (LRA) in December 2022.
The tragic demise of Dinesh Schaffter who served as the Managing Director of the Company since 2014 prompted appointments to further strengthen the Board of Directors/Senior Management, including the appointment of Manjula Mathews as the Deputy Chairperson, and myself as Managing Director (subject to the regulatory clearance).
Dinesh's vision and contribution towards the success of First Capital Group as well as the capital markets industry of Sri Lankan are deeply appreciated and we continue to move forward with our "Performance First" mindset to honour his legacy.
(Sgd.)
Dilshan Wirasekara
Managing Director
Provisional Financial Statements | FIRST CAPITAL TREASURIES PLC |
Quarter ended 31 December 2022 | 1 |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the period | October - December | April - December | |||
2022 | 2021 | 2022 | 2021 | ||
Notes | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Income | 3,359,393 | (38,565) | 7,239,351 | 278,645 | |
Direct income | 3,359,299 | (38,567) | 7,239,077 | 224,095 | |
Direct expenses | (1,833,165) | (188,379) | (4,513,297) | (684,638) | |
Net trading income/ (expense) | 1,526,134 | (226,946) | 2,725,780 | (460,543) | |
Other income | 1 | 94 | 2 | 274 | 54,550 |
Gain/(Loss) on fair valuation of financial assets recognised through profit or | 15,853 | 200,983 | 358,297 | (16,976) | |
loss- measured at fair value | |||||
1,542,081 | (25,961) | 3,084,351 | (422,969) | ||
Operating expenses | |||||
Administrative expenses | (111,826) | (64,034) | (196,390) | (135,176) | |
Sales and distribution expenses | (734) | (1,134) | (3,459) | (1,191) | |
Other operating expenses | (200,083) | (20,701) | (347,315) | (31,089) | |
(312,643) | (85,869) | (547,164) | (167,456) | ||
Profit/ (loss) before tax | 1,229,438 | (111,830) | 2,537,187 | (590,425) | |
Income tax expenses | 2 | (426,778) | 164,485 | (630,520) | 229,246 |
Profit/ (loss) for the period | 802,660 | 52,655 | 1,906,667 | (361,179) | |
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 | - | - | - | - | |
Total comprehensive income/ (loss) for the period | 802,660 | 52,655 | 1,906,667 | (361,179) | |
Earnings/ (loss) per share (Rs.) | 3 | 1.30 | 0.09 | 3.10 | (0.59) |
Figures in bracket indicate deductions.
Note: All values are in Rupees '000 unless otherwise stated.
Provisional Financial Statements | FIRST CAPITAL TREASURIES PLC |
Quarter ended 31 December 2022 | 2 |
STATEMENT OF FINANCIAL POSITION
As at | Notes | 31 December | 31 March |
2022 | 2022 | ||
(Unaudited) | (Audited) | ||
ASSETS | |||
Cash at banks and in hand | 38,194 | 348,585 | |
Derivative financial instruments | 20,412 | 5,190 | |
Financial assets recognised through profit or loss - measured at fair value | 43,235,129 | 24,509,930 | |
Financial assets -at amortised cost | 10,023,077 | 3,109,800 | |
Amounts due from related companies | 368 | 2,060 | |
Deferred tax asset | 4,230 | 94,318 | |
Other assets | 386,866 | 338,345 | |
Property, plant and equipment and right of use assets | 4,521 | 7,782 | |
Intangible assets | 400 | 573 | |
TOTAL ASSETS | 53,713,197 | 28,416,583 | |
LIABILITIES | |||
Derivative financial instruments | 277,512 | 2,622 | |
Securities sold under re-purchase agreements | 45,426,981 | 23,397,838 | |
Short term borrowings | 751,479 | - | |
Creditors and other payables | 489,639 | 363,897 | |
Amounts due to related companies | 16,556 | 6,528 | |
Income tax payable | 540,432 | - | |
Borrowings on listed debentures | 5 | 786,434 | 760,577 |
Retirement benefit obligations | 14,051 | 11,561 | |
TOTAL LIABILITIES | 48,303,084 | 24,543,023 | |
EQUITY | |||
Stated capital | 6 | 256,500 | 256,500 |
Risk reserve | 1,577,460 | 1,386,793 | |
Retained earnings | 3,578,153 | 2,232,267 | |
Fair valuation reserve | (2,000) | (2,000) | |
TOTAL EQUITY | 5,410,113 | 3,873,560 | |
TOTAL EQUITY & LIABILITIES | 53,713,197 | 28,416,583 | |
Note: All values are in Rupees '000 unless otherwise stated.
These 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 financial statements.
Dilshan Wirasekara | Nishan Fernando |
Managing Director | Chairman |
13 February 2023 | |
Colombo | |
Provisional Financial Statements | FIRST CAPITAL TREASURIES PLC |
Quarter ended 31 December 2022 | 3 |
STATEMENT OF CHANGES IN EQUITY
For the nine months ended 31 December 2022 | Stated | Risk | Retained | Fair Valuation | Total |
Capital | Reserve | Earnings | Reserve | Equity | |
Balance as at 1 April 2021 (Audited) | 256,500 | 1,386,793 | 2,876,930 | (2,000) | 4,518,223 |
Total comprehensive income for the period | |||||
Loss for the period | - | - | (361,179) | - | (361,179) |
Other comprehensive income | - | - | - | - | - |
Total comprehensive loss | - | - | (361,179) | - | (361,179) |
Transactions with equity holders | - | - | - | - | - |
Transfer to risk reserve | - | - | - | - | - |
Balance as at 31 December 2021 (Unaudited) | 256,500 | 1,386,793 | 2,515,751 | (2,000) | 4,157,044 |
Balance as at 1 April 2022 (Audited) | 256,500 | 1,386,793 | 2,232,267 | (2,000) | 3,873,560 |
Impact of Surcharge Tax Liability (Note 07) | - | - | (370,114) | - | (370,114) |
Adjusted balance as at 1 April 2022 | 256,500 | 1,386,793 | 1,862,153 | (2,000) | 3,503,446 |
Total comprehensive income for the period | |||||
Profit for the period | - | - | 1,906,667 | - | 1,906,667 |
Other comprehensive income | - | - | - | - | - |
Total comprehensive income | - | - | 1,906,667 | - | 1,906,667 |
Transactions with equity holders | - | - | - | - | - |
Transfer to risk reserve | - | 190,667 | (190,667) | - | - |
Balance as at 31 December 2022 (Unaudited) | 256,500 | 1,577,460 | 3,578,153 | (2,000) | 5,410,113 |
Figures in bracket indicate deductions. | |||||
Note: All values are in Rupees '000 unless otherwise stated. |
Provisional Financial Statements | FIRST CAPITAL TREASURIES PLC |
Quarter ended 31 December 2022 | 4 |
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First Capital Treasuries plc published this content on 15 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2023 04:24:05 UTC.
