Nation Lanka Finance : Quarterly Financial Report as at 06.30.2022

Nation Lanka Finance PLC Statement of Financial Position

		Company
	As at 30th June	As at 31st March	As at 31st
	2022	2022	March 2021
			Audited
	Rs. '000'	Rs. '000'	Rs. '000'
ASSETS
Cash and Cash Equivalents	88,628	86,445	105,175
Deposits With Licensed Commercial Banks	465,602	329,450	305,228
Financial Assets Recognized Through Profit or
Loss-Measured at fair value	48,702	61,491	30,844
Financial Assets Measured at Fair Value Through Other
Comprehensive Income	35,031	35,031	35,031
Financial Assets Measured at Amortized Cost
- Loans and Advances	3,634,413	3,758,682	4,409,429
- Debt and Other Instruments	793,494	603,818	335,160
Investments in Subsidiaries	-	-	-
Amounts Due From Related Parties	3,300	3,150	2,354
Real Estate Stock	75,648	75,668	281,985
Investment Property	1,153,366	1,153,366	830,675
Property, Plant & Equipment	17,707	19,646	31,898
Right-to-use Asset	61,097	69,407	103,416
Intangible Assets	559	1,141	3,708
Trade & Other Receivables	282,895	274,920	231,534
Retirement Benefit Plan Assets	91,838	91,838	89,721
Deferred Tax Asset	548,663	548,663	466,475
TOTAL ASSETS	7,300,943	7,112,715	7,262,633
LIABILITIES
Due to Banks and Financial Institutions	89,523	32,794	277,325
Financial Liabilities at amortized cost-due to depositors	6,109,647	5,355,163	5,247,606
Lease liability	41,214	49,523	83,533
Amounts Due To Related Parties	613	613	700
Other Borrowings	262,802	493,134	296,669
Retirement Benefit Obligations	36,763	34,482	47,024
Trade & Other Payables	134,578	145,769	201,597
Subordinated Debentures	-	150,000	150,000
TOTAL LIABILITIES	6,675,140	6,261,480	6,304,453
CAPITAL AND RESERVES
Stated Capital	1,224,042	1,224,042	1,224,042
Reserve Fund	131,422	131,422	131,422
Fair value reserve	(91,340)	(91,340)	(95,662)
Other Reserves	9,000	9,000	9,000
Retained Earnings	(647,321)	(421,888)	(310,623)
TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY	625,802	851,236	958,179
Non-Controlling Interest	-	-	-
TOTAL EQUITY	625,802	851,236	958,179
TOTAL LIABILITIES & EQUITY	7,300,943	7,112,715	7,262,633
Net Assets Per Share	0.46	0.63	0.71
Contingent liabilities and commitments	16,700	16,700	18,950

CERTIFICATION

We, the undersigned being Chief Financial Officer and Director of Nation Lanka Finance PLC certify jointly that:

1. the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of SriLanka and Companies Act no 07 of 2007.
2. the information contained in these statements have been extracted from the unaudited financial statements of the Nation Lanka Finance PLC unless indicated as audited.

	Group
As at 30th June	As at 31st	As at 31st
2022	March 2022	March 2021
		Audited
Rs. '000'	Rs. '000'	Rs. '000'
88,628	86,445	105,175
465,602	329,450	305,228
48,702	61,491	30,844
35,031	35,031	35,031
3,634,413	3,758,682	4,409,429
793,494	603,818	335,160
-	-	-
3,300	3,150	2,354
75,648	75,668	281,985
1,153,366	1,153,366	830,675
17,707	19,646	31,898
61,097	69,407	103,416
559	1,141	3,708
282,895	274,920	231,534
91,838	91,838	89,721
548,663	548,663	466,475
7,300,943	7,112,715	7,262,633
89,523	32,794	277,325
6,109,647	5,355,163	5,247,606
		-
41,214	49,523	83,533
-	-	-
262,802	493,134	296,669
36,763	34,482	47,024
134,619	145,810	201,665
-	150,000	150,000
6,674,568	6,260,907	6,303,822
1,224,042	1,224,042	1,224,042
131,422	131,422	131,422
(91,340)	(91,340)	(95,662)
9,000	9,000	9,000
(646,749)	(421,316)	(309,992)
626,375	851,808	958,811
-	-	-
626,375	851,808	958,811
7,300,943	7,112,715	7,262,633
0.46	0.63	0.71
16,700	16,700	18,950

Signed by :	Signed by :	Signed by :
G R N Dilip Kumara	S A Wickramasinghe	A G M Priyantha
Chief Financial Officer	Director	Director
12th August 2022	12th August 2022	12th August 2022

Nation Lanka Finance PLC

Statement of Profit or Loss and Other Comprehensive Income

	Company		Group
	Quarter ended	Quarter ended		Quarter ended	Quarter ended
	30th June 2022	30th June 2021		30th June 2022	30th June 2021
	Rs. '000'	Rs. '000'		Rs. '000'	Rs. '000'
Interest income	221,378	190,872	221,378	190,872
Interest expense	(199,874)	(141,267)	(199,874)	(141,267)
Net interest income	21,504	49,605	21,504	49,605
Net income / (loss) on property development	-	1,970	-	1,970
Fee and commission income	17,557	560	17,557	560
Net fair value gains/(losses) from financial instruments at
fair value through profit or loss	(12,789)	(795)	(12,789)	(795)
Change in fair value of investment property	-	(2,350)	-	(2,350)
Other operating income	12,123	4,702	12,123	4,702
Collection from contracts previously written off	3,706	39,261	3,706	39,261
Total operating income	42,102	92,953	42,102	92,953
Impairment for loans and other losses	(62,460)	(18,113)	(62,460)	(18,113)
Net operating income	(20,358)	74,840	(20,358)	74,840

Operating Expenses
Personnel Costs	(85,345)	(80,110)
Premises Equipment & Establishment Expenses	(31,955)	(35,216)
Other Overhead Expenses	(87,157)	(71,549)
Other Finance Cost	(618)	(347)
Total Operating Expenses	(205,075)	(187,221)
Operating profit / ( loss) before VAT	(225,433)	(112,381)
Vat on financial services	-	-
Operating profit / (loss) after VAT	(225,433)	(112,381)
Tax expenses	-	-
Profit / (loss) for the period	(225,433)	(112,381)
Other comprehensive income	-	-
Total comprehensive income	(225,433)	(112,381)
Profit / (Loss) attributable to
Equity holders of the company
Non controlling interest
Total comprehensive income attributable to
Equity holders of the company
Non controlling interest
Basic earnings per ordinary share	(0.17)	(0.08)

(85,345) (80,110)

(31,955) (35,216)

(87,157) (71,549)

1. (347)
   (205,075) (187,221)

(225,433)	(112,381)
-	-
(225,433)	(112,381)
-	-
(225,433)	(112,381)
-	-
(225,433)	(112,381)
(225,433)	(112,381)
-	-
(225,433)	(112,381)
(225,433)	(112,381)
-	-
(225,433)	(112,381)
(0.17)	(0.08)

Nation Lanka Finance PLC

Statement of Changes in Equity as at 30th June 2022

	Stated	Fair Value	Reserve	General	Retained	Minority	Total
	Capital	Reserve	Fund	Reserve	Profit	Interest	Equity
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Company
Balance as at 01.04.2021	1,224,042	(95,662)	131,422	9,000	(310,623)	-	958,179
Profit / (loss) for the year	-	-	-	-	(112,381)	-	(112,381)
Other comprehensive income for the year	-	-	-	-	-	-	-
Balance as at 30.06.2021	1,224,042	(95,662)	131,422	9,000	(423,004)	-	845,798
Balance as at 01.04.2022	1,224,042	(91,340)	131,422	9,000	(421,888)	-	851,236
Profit / (loss) for the year	-	-	-	-	(225,433)	-	(225,433)
Other comprehensive income for the year	-	-	-	-	-	-	-
Balance as at 30.06.2022	1,224,042	(91,340)	131,422	9,000	(647,321)	-	625,802
Group
Balance as at 01.04.2021	1,224,042	(95,662)	131,422	9,000	(309,992)	-	958,811
Profit / (loss) for the year	-	-	-	-	(112,381)	-	(112,381)
Other comprehensive income for the year	-	-	-	-	-	-	-
Balance as at 30.06.2021	1,224,042	(95,662)	131,422	9,000	(422,373)	-	846,429
Balance as at 01.04.2022	1,224,042	(91,340)	131,422	9,000	(421,316)	-	851,808
Profit / (loss) for the year	-	-	-	-	(225,433)	-	(225,433)
Other comprehensive income for the year	-	-	-	-	-	-	-
Balance as at 30.06.2022	1,224,042	(91,340)	131,422	9,000	(646,749)	-	626,375

Nation Lanka Finance PLC

Statement of Cash Flows

	Company		Group
	Rs. '000'		Rs. '000'
For three monthes ended 30th June	2022	2021	2022	2021
Cash Flow from Operating Activities
Profit/(Loss) before Income Tax Expense	(225,433)	(112,381)	(225,433)	(112,381)
Adjustments for
Net fair value gains/(losses) from financial instruments Measured at FVTPL	12,789	795	12,789	795
Depreciation and amortization	3,313	5,172	3,313	5,172
Amortization of ROU assets	8,309	9,431	8,309	9,431
Interest expense on lease liability	4,000	3,892	4,000	3,892
Interest Expenses	195,874	137,267	195,874	137,267
Interest income on Government Securities	(19,038)	(4,317)	(19,038)	(4,317)
Impairment of Loans and Receivables	62,460	18,113	62,460	18,113
Provision for fall in value of Real Estate Stock		(1,970)	-	(1,970)
Loss / ( gain) on Investment Property	-	2,350	-	2,350
Provision / (Reversal) for Retiring Benefit Obligations	2,450	2,450	2,450	2,450
Operating Profit Before Working Capital Changes	44,724	60,802	44,724	60,802
Working Capital Changes
Decrease/(Increase) in Financial Assets at Amortized cost	61,809	271,491	61,809	271,491
Decrease/(Increase) in Investment in Real Estate	20	11,090	20	11,090
Decrease/(Increase) in Related Party Receivables	(150)	179	(150)	179
Decrease/(Increase) in Trade and Other Receivables	(7,705)	(81,491)	(7,705)	(81,491)
Increase/(Decrease) Trade & Other Payables	(11,191)	(61,768)	(11,191)	(61,768)
Increase/(Decrease) Financial Liabilities at amortized cost -due to depositors	754,483	48,601	754,483	48,601
Cash from Operations	841,990	248,904	841,990	248,904
Income Tax Paid	-	-	-	-
Interest expenses paid	(195,874)	(137,267)	(195,874)	(137,267)
Retiring Gratuity Paid	(169)	(3,560)	(169)	(3,560)
Net Cash generated from Operating Activities	645,948	108,077	645,948	108,077
Cash Flow from Investing Activities
Acquisition of Property, Plant & Equipment	(1,061)	(703)	(1,061)	(703)
Proceeds from Disposal of Investment Property	-	4,500	-	4,500
Net proceed from government securities	(170,638)	(12)	(170,638)	(12)
Net Cash used in Investing Activities	(171,700)	3,785	(171,700)	3,785
Cash Flow from Financing Activities
Repayment of Loans	(230,332)	(71,389)	(230,332)	(71,389)
Proceeds from Borrowings	-	200,000	-	200,000
Lease rental payments	(12,309)	(13,323)	(12,309)	(13,323)
Repayment of Subordinated Debentures	(150,000)	-	(150,000)	-
Net Cash generated from Financing Activities	(392,642)	115,288	(392,642)	115,288
Increase/(Decrease) in Cash & Cash Equivalents	81,607	227,150	81,607	227,150
Cash & Cash Equivalents at the Beginning of the Year	383,310	138,071	383,310	138,071
Cash & Cash Equivalents at the End of the year	464,917	365,221	464,917	365,221
Reconciliation of Cash & Cash Equivalents
Cash in Hand & at Bank	88,628	85,999	88,628	85,999
Short Term Investments	465,812	315,382	465,812	315,382
Bank Overdraft	(89,523)	(36,160)	(89,523)	(36,160)
	464,917	365,221	464,917	365,221

10

	Nation Lanka Finance PLC
	Selected Performance Indicators (as per regulatory reporting)
	As at 30th June 2022	As at 31st March 2022
	'000'	'000'
Regulatory Capital Adequacy
Core capital ( Tier 1 capital)	327,876	502,610
Total capital base	621,481	913,182
	Minimum 7%	Minimum 7%
Core capital adequacy ratio , as % of risk weighted assets	-3.54%	-0.75%
	Minimum 11%	Minimum 11%
Total capital adequacy ratio , as % of risk weighted assets	-2.23%	0.58%
Asset Quality ( Quality of loan portfolio)
Gross Non -Performing Accommodations	2,227,471	2,165,828
Gross Non -Performing Accommodations %	40.22%	38.78%
Regulatory Liquidity
Required minimum amount of liquid assets	623,465	547,520
Available amount of liquid assets	988,474	700,432