Softlogic : Interim Financial Statment for the period ended 31st December 2023

SOFTLOGIC HOLDINGS PLC

INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 31 DECEMBER 2023

Dear Stakeholders,

Rs. Mn	3QFY24	3QFY23	Change
Revenue	27,578	25,243	9%
Gross profit	9,975	8,689	15%
EBITDA	3,991	2,195	217%
Operating Profit	2,974	1,167	155%

1-3QFY241-3QFY23 Change

75,552	72,541	4%
25,540	26,774	-5%
6,952	9,078	-23%
3,806	6,023	-37%

The economic landscape in Sri Lanka has seen notable shifts and policy adjustments recently. These developments reflect a concerted effort to stabilize the economy, enhance revenue streams, support tourism recovery, and secure external financial assistance to address macroeconomic challenges.

Against this backdrop, the Group strongly witnessed renewed business revival recording improved financial performance in core sectors during the quarter. The Group achieved a consolidate revenue growth of 4.2% to Rs. 75.6 Bn during the nine-month period under review while the quarter recorded a revenue growth of 9.3% to Rs. 27.6 Bn. During the cumulative period, the Retail sector contributed 34% to Group revenue while Healthcare Services made up 28%. 27% of Group topline was generated from Financial Services while 7% was from the IT sector. Leisure & Property and Automobile together took up 3.1% of Consolidated revenue.

Gross Profit declined 4.6% to Rs. 25.5 Bn during the cumulative period as a result GP margin contraction from 36.9% to 33.8%. This margin contraction was particularly led by the import-oriented sectors which witnessed rapid cost increase amid local and global inflation and Rupee depreciation. However, the positive economic developments supported the Group to register a GP margin improvement due to inflation containment and strengthening of the Rupee during the quarter from 34.4% to 36.2% resulting in quarterly Gross Profit to reach Rs.10 Bn, up 14.8%.

The Group achieved an EBITDA growth of 82% to Rs. 4.0 Bn during the quarter while cumulative EBITDA was Rs. 7.0 Bn. Cost optimization initiatives coupled with inflation contraction led the quarterly operating cost to decline 7.1% to Rs. 7.4 Bn as opposed to Rs. 7.9 Bn recorded in the comparative quarter. Operating cost margins improved from 11% in 3QFY23 to 9.8% in 3QFY24. Subsequently, quarterly operating profit was Rs. 3 Bn compared with Rs. 1.2 Bn in the corresponding quarter. Cumulative operating profit was Rs. 3.8 Bn.

Finance Income, predominantly derived from the insurance business's investment income, was Rs. 6.1 Bn for the cumulative period while Rs. 1.8 Bn was recorded for the quarter.

Softlogic Group benefitted from the reducing interest rates as it witnessed finance cost reducing 25.8% to Rs. 16.2 Bn for the nine-month period while a solid 44.4% reduction in finance cost to Rs. 5 Bn was incurred during the quarter.

The transfer of Rs. 2.9 Bn to the Life Fund during the cumulative period compared with Rs. 2 Bn in the comparative period signifies the difference between income and expenditure attributable to life policyholders during the period. The quarter registered a transfer of Rs. 1.5 Bn as opposed to Rs. 254 Mn recorded in the comparative quarter.

The Group's performance witnessed a strong revival during the quarter where PAT improved 76.7% to trim the losses to Rs. 1.7 Bn during the quarter while taking cumulative losses to Rs. 10.5 Bn (post- adjustments) compared with Rs. 13.9 Bn loss in the comparative period.

SEGMENT HIGHLIGHTS

		Revenue			EBITDA
Rs. Mn	1-3QFY24	1-3QFY23	Change	1-3QFY24	1-3QFY23	Change
Retail & Telecommunication	25,737	27,899	-8%	141	3,608	-96%
Healthcare Services	21,255	18,149	17%	6,010	5,362	12%
Financial Services	20,766	18,193	14%	(492)	(868)	43%
Information Technology	5,445	5,628	-3%	687	1,070	-36%
Leisure & Property	2,067	1,409	47%	63	(187)	133%
Automobiles	277	1,258	-78%	75	(103)	173%
Group	75,552	72,541	4%	6,952	9,078	-23%
		Revenue			EBITDA
Rs. Mn	3QFY24	3QFY23	Change	3QFY24	3QFY23	Change
Retail & Telecommunication	9,713	9,400	3%	340	118	188%
Healthcare Services	7,315	6,645	10%	2,122	2,244	-5%
Financial Services	7,747	6,718	15%	621	(615)	201%
Information Technology	1,867	1,699	10%	320	366	-12%
Leisure & Property	842	653	29%	154	2	7615%
Automobiles	92	127	-27%	25	(195)	113%
Group	75,552	72,541	4%	3,991	2,195	82%

Retail sector recorded a 3% increase in quarterly revenue to Rs. 9.7 Bn while the cumulative sector revenue was Rs. 25.7 Bn. Quarterly sector EBITDA achieved more than two-fold growth to Rs. 340 Mn while Rs. 141 Mn was recorded for the cumulative period.

A 17% revenue growth was recorded in the healthcare sector to Rs. 21.3 Bn during the cumulative period while a 10% quarterly revenue growth to Rs. 7.3 Bn was achieved. Cumulative sector EBITDA witnessed a 12% growth to Rs. 6 Bn while quarterly EBITDA was Rs. 2.1 Bn. Sector profitability witnessed a strong 77% growth to Rs. 2.2 Bn.

Softlogic Life Insurance recorded a 18% GWP growth to Rs. 20.4 Bn during the cumulative period, exceeding industry growth rates. Due to increasing interest rates and a legacy business environment, which adversely impacted performance, Softlogic Finance operated under regulatory constraints. As of 31Dec23, customer deposits amounted to Rs. 7.9 Bn.

Financial Services sector achieved a topline growth of 14% to Rs. 20.8 Bn during the cumulative period while the quarter recorded a 15% growth to Rs. 7.7 Bn. The quarter also recorded a turnaround in sector's operating profit to Rs. 572 Mn compared with an operating loss of Rs. 666 Mn registered in the comparative quarter. Sector profitability achieved a strong turnaround closing the period with a PAT of Rs. 727 Mn (Rs. 39 Mn loss in 1-3QFY23).

IT sector recorded a quarterly revenue growth of 10% to Rs. 1.9 Bn while the cumulative sector topline was Rs. 5.4 Bn. Primarily led by decreased interest expenses, the sector's profitability grew 54% to Rs. 334 Mn during the cumulative period.

The hotel sector's strong performance during the quarter paved way for a 29% growth in leisure sector topline leading it to achieve an EBITDA of Rs. 154 Mn (Rs. 2 Mn in 3QFY23) which reduced quarterly losses. Cumulative topline was Rs. 2.1 Bn, up 47% while sector EBITDA was Rs. 63 Mn (loss of Rs. 187 Mn in 1-3QFY23). Cumulative sector net loss had reduced as a result.

Automobile sector continued to be plagued with import bans.

OUTLOOK

The Group anticipates continued challenges in the macroeconomic environment, particularly concerning consumer disposable income with imposition of unrealistic personal taxes and VAT. The effects of various tax adjustments and inflationary pressures are expected to persist, impacting the purchasing power of the general population. Government should consider reducing taxes to stimulate economic activity by ensuring disposable income in the hands of consumers are adequate for spending purposes otherwise SMEs will not survive going forward. Despite these challenges, the Group remains optimistic about its ability to minimize those challenges while harnessing opportunities that evolve positively.

As part of the Group's revival plan, the Rs. 10 Bn equity infusion through Rights and Warrants is expected to significantly alleviate financial pressure, with the proceeds being allocated for debt settlements. Additional equity infusions are proposed at sector levels along with assets and investment optimisation to support further revival the Group's financial position.

We have entered into a 99-year lease agreement with the Colombo's Port City Development to establish a state-of-the-art hospital with 500 beds, in partnership with the prestigious Mayo Clinic. This initiative targets the regional medical tourism markets. The hospital will enjoy a 25-year tax exemption from the commencement of operations, with a reduced tax rate of 50% for a further 10 years thereafter, offering substantial tax benefits. Softlogic Life Insurance has submitted a bid for the acquisition of Sri Lanka Insurance Corporation, while the Asiri Group has placed a bid for the acquisition of Lanka Hospitals Corporation PLC. Pre-arranged funding for these potential acquisitions would be sourced through external offshore counterparties. The completion of these acquisitions, which is subject to a transparent and competitive bidding process, is expected to yield substantial synergies, propelling the Group to dominant market positions in their respective sectors.

With the economy rebounding, while the CBSL's and the Ministry of Finance's policy initiatives are geared to supporting economic growth while containing inflation and interest rates the Group is expected to reap significant financial cost savings while an uptick in consumer demand supports greater viability of the Group despite legacy overhangs. Looking forward, coupled with a rebound in economic activity, these strategic actions, taken together, are expected to contribute significantly to the Group's financial rewards.

-Sgd-

ASHOK PATHIRAGE CHAIRMAN

15 March 2024

Softlogic Holdings PLC

CONSOLIDATED INCOME STATEMENT

	Un-audited	Un-audited	Change	Un-audited	Un-audited	Change	Un-audited
	9 months to	9 months to	as a	3 months to	3 months to	as a	12 months to
In Rs. '000	31-12-2023	31-12-2022	%	31-12-2023	31-12-2022	%	31-03-2023
Continuing operations
Revenue from contract with customers	54,971,650	54,528,907	1	19,873,011	18,579,983	7	72,515,676
Revenue from insurance contracts	18,505,427	15,113,552	22	7,181,320	5,637,660	27	20,458,558
Interest income	2,074,694	2,898,975	(28)	524,148	1,025,761	(49)	3,925,136
Total revenue	75,551,771	72,541,434	4	27,578,479	25,243,404	9	96,899,370
Cost of sales	(50,011,920)	(45,767,682)	9	(17,603,744)	(16,554,395)	6	(62,803,630)
Gross profit	25,539,851	26,773,752	(5)	9,974,735	8,689,009	15	34,095,740
Other operating income	1,021,477	1,119,398	(9)	382,234	423,071	(10)	1,592,436
Distribution expenses	(2,555,439)	(2,632,809)	(3)	(770,599)	(1,042,406)	(26)	(4,438,786)
Administrative expenses	(20,199,433)	(19,237,670)	5	(6,612,058)	(6,902,412)	(4)	(29,398,481)
Results from operating activities	3,806,456	6,022,671	(37)	2,974,312	1,167,262	155	1,850,909
Finance income	6,079,692	6,243,020	(3)	1,810,468	1,923,862	(6)	8,024,438
Finance expenses	(16,227,797)	(21,870,510)	(26)	(5,018,311)	(9,019,511)	(44)	(28,951,205)
Net finance cost	(10,148,105)	(15,627,490)	(35)	(3,207,843)	(7,095,649)	(55)	(20,926,767)
Change in fair value of investment property	-	-	-	-	-	-	77,486
Share of profit/ (loss) of equity accounted
investees	13,842	2,995	362	7,699	(2,071)	(472)	38,960
Change in insurance contract liabilities	(2,901,290)	(2,021,474)	44	(1,457,537)	(254,429)	473	(1,948,266)
Loss before tax	(9,229,097)	(11,623,298)	(21)	(1,683,369)	(6,184,887)	(73)	(20,907,678)
Tax expense	(1,282,163)	(2,316,706)	(45)	(20,921)	(1,103,157)	(98)	(2,749,618)
Loss for the period	(10,511,260)	(13,940,004)	(25)	(1,704,290)	(7,288,044)	(77)	(23,657,296)
Attributable to:
Equity holders of the parent	(12,922,133)	(15,320,322)	(16)	(3,180,264)	(7,759,929)	(59)	(24,076,881)
Non-controlling interest	2,410,873	1,380,318	75	1,475,974	471,885	213	419,585
	(10,511,260)	(13,940,004)	(25)	(1,704,290)	(7,288,044)	(77)	(23,657,296)
Loss per share
Basic	(10.84)	(12.85)	(16)	(2.67)	(6.51)	(59)	(20.19)

Note : Figures in brackets indicate deductions.

The above figures are not audited unless otherwise stated.

-4-

Softlogic Holdings PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Un-audited	Un-audited	Change	Un-audited	Un-audited	Change	Un-audited
	9 months to	9 months to	as a	3 months to	3 months to	as a	12 months to
In Rs. '000	31-12-2023	31-12-2022	%	31-12-2023	31-12-2022	%	31-03-2023
Loss for the period	(10,511,260)	(13,940,004)	(25)	(1,704,290)	(7,288,044)	(77)	(23,657,296)

Other comprehensive income

Continuing operations

Other comprehensive income to be reclassified to income statement in subsequent periods

Currency translation of foreign operations	1,166	(10,968)	(111)	(686)	7,784	(109)	5,740
Net change in fair value on derivative financial instruments	291,112	(2,169,733)	(113)	70,159	(118,558)	(159)	(256,113)
Net profit/ (loss) on financial instruments at fair value through
other comprehensive income	243,957	(438,047)	(156)	(230,686)	(105,085)	120	(418,344)
Net other comprehensive loss to be reclassified to income
statement in subsequent periods	536,235	(2,618,748)	(120)	(161,213)	(215,859)	(25)	(668,717)

Other comprehensive income not to be reclassified to income statement in subsequent periods

Revaluation of land and buildings	43,784	-	-	43,784	-	-	5,197,040
Re-measurement gain/ (loss) on employee benefit liabilities	(20,845)	26,215	(180)	(20,845)	26,215	(180)	387,312
Share of other comprehensive income of equity accounted
investments (net of tax)	-	-	-	-	-	-	849
Net profit/ (loss) on equity instruments at fair value through
other comprehensive income	641,956	(469,021)	(237)	(75,205)	(203,456)	(63)	(282,073)
Tax on other comprehensive income not to be reclassified to
income statement in subsequent periods	-	(1,139,770)	(100)	-	(1,139,770)	(100)	(3,682,992)
Net other comprehensive income/ (loss) not to be reclassified
to income statement in subsequent periods	664,895	(1,582,576)	(142)	(52,266)	(1,317,011)	(96)	1,620,136
Other comprehensive income/ (loss) from continuing
operations for the period, net of tax	1,201,130	(4,201,324)	(129)	(213,479)	(1,532,870)	(86)	951,419
Total comprehensive loss for the period, net of tax	(9,310,130)	(18,141,328)	(49)	(1,917,769)	(8,820,914)	(78)	(22,705,877)
Attributable to:
Equity holders of the parent	(12,239,848)	(18,471,914)	(34)	(3,221,569)	(8,589,741)	(62)	(23,624,016)
Non-controlling interest	2,929,718	330,586	786	1,303,800	(231,173)	(664)	918,139
	(9,310,130)	(18,141,328)	(49)	(1,917,769)	(8,820,914)	(78)	(22,705,877)

Note : Figures in brackets indicate deductions.

The above figures are not audited unless otherwise stated.

-5-

Softlogic Holdings PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Un-audited	Un-audited	Un-audited
	as at	as at	as at
In Rs. '000	31-12-2023	31-12-2022	31-03-2023
ASSETS
Non-current assets
Property, plant and equipment	59,113,938	61,795,500	60,811,514
Right of use assets	6,969,708	7,363,853	7,792,774
Investment property	2,252,523	2,175,037	2,252,523
Intangible assets	7,994,043	8,247,416	8,180,461
Investments in equity accounted investments	47,924	47,269	64,083
Non-current financial assets	34,331,723	32,279,651	33,421,420
Rental receivable on lease assets and hire purchase	4,618,408	7,860,150	7,094,383
Other non-current assets	16,545,636	9,349,944	15,757,032
Deferred tax assets	3,550,845	2,577,269	2,737,200
	135,424,748	131,696,089	138,111,390
Current assets
Inventories	9,423,294	12,202,234	10,186,740
Trade and other receivables	10,404,790	10,472,585	8,273,753
Loans and advances	4,254,035	9,227,842	7,756,234
Rental receivable on lease assets and hire purchase	477,766	909,463	726,455
Amounts due from related parties	110,220	306,847	109,933
Other current assets	4,404,164	5,410,766	3,597,282
Short term investments	10,683,169	15,502,335	10,214,957
Cash in hand and at bank	3,206,091	4,268,349	5,260,169
	42,963,529	58,300,421	46,125,523
Total assets	178,388,277	189,996,510	184,236,913
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Stated capital	12,119,235	12,119,235	12,119,235
Revenue reserves	(64,504,554)	(41,707,198)	(51,548,609)
Other components of equity	8,002,771	2,654,081	7,351,222
	(44,382,548)	(26,933,882)	(32,078,152)
Non-controlling interests	17,220,886	14,283,671	14,206,292
Total equity	(27,161,662)	(12,650,211)	(17,871,860)
Non-current liabilities
Insurance contract liabilities	27,201,868	25,338,502	24,462,094
Interest bearing borrowings	42,854,853	47,603,504	42,901,064
Lease liabilities	5,619,668	5,570,444	5,595,958
Public deposits	2,276,695	3,385,866	3,094,921
Deferred tax liabilities	7,054,660	4,750,813	6,997,084
Employee benefit liabilities	1,678,133	1,809,133	1,556,994
Other deferred liabilities	35,521	48,015	146
Other non-current financial liabilities	763,999	739,874	777,906
	87,485,397	89,246,151	85,386,167
Current liabilities
Trade and other payables	22,820,513	19,616,050	20,411,053
Amounts due to related parties	28,919	28,919	28,919
Income tax liabilities	2,242,619	1,512,403	1,871,190
Other current financial liabilities	52,437,860	53,347,933	53,328,649
Current portion of interest bearing borrowings	18,441,179	13,582,135	18,129,698
Current portion of lease liabilities	1,444,960	1,425,198	1,896,051
Other current liabilities	5,021,327	4,059,527	2,338,659
Public deposits	5,614,161	10,034,481	9,335,694
Bank overdrafts	10,013,004	9,793,924	9,382,693
	118,064,542	113,400,570	116,722,606
Total equity and liabilities	178,388,277	189,996,510	184,236,913

I certify that the financial statements comply with the requirements of the Companies Act No. 7 of 2007.

-sgd-

Head of Finance

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

-sgd-	-sgd-
Chairman	Director
15 March 2024
Colombo

-6-

Softlogic Holdings PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

GROUP

				Attributable to equity holders of parent					Non-	Total
												controlling	equity
			Non-			Fair value						interest
			distributable		Foreign	reserve of
		Restricted	regulatory		currency	financial	Statutory
	Stated	regulatory loss allowance	Revaluation	translation	assets at	reserve	Other	Cash flow	Revenue
In Rs. '000	capital	reserve	reserve	reserve	reserve	FVOCI	fund	reserves	hedge reserve	reserve	Total
As at 01 April 2023	12,119,235	309,613	1,289,904	13,311,383	(136,714)	(1,552,983)	263,436	(1,689,786)	(4,443,631)	(51,548,609)	(32,078,152)	14,206,292	(17,871,860)
Profit/ (loss) for the period	-	-	-	-	-	-	-	-	-	(12,922,133)	(12,922,133)	2,410,873	(10,511,260)
Other Comprehensive income	-	-	-	17,539	1,166	381,062	-	-	290,869	(8,351)	682,285	518,845	1,201,130
Equity investments at FVOCI reclassified to retained
earnings	-	-	-	-	-	25,461	-	-	-	(25,461)	-	-	-
Total Comprehensive income/ (loss)	-	-	-	17,539	1,166	406,523	-	-	290,869	(12,955,945)	(12,239,848)	2,929,718	(9,310,130)
Changes in ownership interest in subsidiaries	-	-	-	-	-	-	-	(64,548)	-	-	(64,548)	133,876	69,328
Subsidiary dividend to non-controlling interest	-	-	-	-	-	-	-	-	-	-	-	(49,000)	(49,000)
As at 31 December 2023	12,119,235	309,613	1,289,904	13,328,922	(135,548)	(1,146,460)	263,436	(1,754,334)	(4,152,762)	(64,504,554)	(44,382,548)	17,220,886	(27,161,662)
As at 01 April 2022	12,119,235	309,613	-	12,448,948	(141,749)	(1,339,562)	263,436	(1,670,898)	(4,025,654)	(26,397,403)	(8,434,034)	14,031,498	5,597,464
Profit/ (loss) for the period	-	-	-	-	-	-	-	-	-	(15,320,322)	(15,320,322)	1,380,318	(13,940,004)
Other Comprehensive income/ (loss)	-	-	-	(596,008)	(10,968)	(387,236)	-	-	(2,167,907)	10,527	(3,151,592)	(1,049,732)	(4,201,324)
Total Comprehensive income/ (loss)	-	-	-	(596,008)	(10,968)	(387,236)	-	-	(2,167,907)	(15,309,795)	(18,471,914)	330,586	(18,141,328)
Changes in ownership interest in subsidiaries	-	-	-	-	-	-	-	(27,934)	-	-	(27,934)	(2,463)	(30,397)
Subsidiary dividend to non-controlling interest	-	-	-	-	-	-	-	-	-	-	-	(75,950)	(75,950)
As at 31 December 2022	12,119,235	309,613	-	11,852,940	(152,717)	(1,726,798)	263,436	(1,698,832)	(6,193,561)	(41,707,198)	(26,933,882)	14,283,671	(12,650,211)

Note : Figures in brackets indicate deductions.

The above figures are not audited unless otherwise stated.

-7-

Softlogic Holdings PLC

CONSOLIDATED CASH FLOW STATEMENT

	Un-audited	Un-audited	Un-audited
	9 months to	9 months to	12 months to
In Rs. '000	31-12-2023	31-12-2022	31-03-2023

CASH FLOWS FROM/ (USED IN) OPERATING ACTIVITIES
Loss before tax from continuing operations	(9,229,097)	(11,623,298)	(20,907,678)
Adjustments for:
Finance income	(6,079,692)	(6,243,020)	(8,024,438)
Finance cost	16,227,797	21,870,510	28,951,205
Change in fair value of investment property	-	-	(77,486)
Share of results of equity accounted investees	(13,842)	(2,995)	(38,960)
Gratuity provision and related cost	299,435	262,814	439,528
Provisions for/ write-off of impaired receivables	97,002	92,936	92,420
Provision for write-off of inventories	54,180	42,734	58,612
Provisions for/ write-off of loans and advances	455,682	108,099	1,351,242
Provisions for/ write-off of investments in lease and hire purchase	104,496	100,397	289,151
Depreciation of property, plant and equipment	2,928,519	2,826,467	3,783,680
Profit on sale of property, plant and equipment	(22,421)	(28,546)	(41,187)
Impairment of investments	(130,395)	1,458,098	2,940,895
Amortisation/ impairment of intangible assets	216,768	229,038	308,693
Impairment/ derecognition of property, plant and equipment and right
of use assets	-	-	23,520
Amortisation right of use assets	1,302,193	1,542,187	1,820,188
Profit before working capital changes	6,210,625	10,635,421	10,969,385
Decrease in inventories	709,265	1,226,228	3,224,867
(Increase)/ decrease in trade and other receivables	(2,227,305)	(1,059,644)	1,139,696
(Increase)/ decrease in loans and advances	3,957,302	(1,677,724)	(916,511)
Decrease in investments in lease and hire purchase	2,620,169	2,392,874	3,152,896
(Increase)/ decrease in other current assets	(824,491)	(1,412,894)	357,834
(Increase)/ decrease in amounts due from related parties	(287)	1,595,610	1,792,525
Increase/ (decrease) in trade and other payables	2,428,833	(10,499,592)	(8,076,980)
Increase/ (decrease) in other current liabilities	2,761,701	1,801,314	(60,413)
Increase/ (decrease) in deferred income	(43,658)	(76,589)	16,402
Decrease in public deposits	(4,539,759)	(2,161,659)	(3,151,391)
Increase in insurance contract liabilities	2,739,775	2,779,379	1,902,970
Cash generated from operations	13,792,170	3,542,724	10,351,280
Finance income received	6,251,077	4,599,659	8,203,408
Finance expenses paid	(12,013,683)	(18,383,173)	(24,117,607)
Dividends received	30,000	-	20,000
Tax paid	(1,615,646)	(787,401)	(1,308,887)
Gratuity paid	(199,140)	(137,674)	(206,360)
Net cash flow from/ (used in) operating activities	6,244,778	(11,165,865)	(7,058,166)
CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES
Purchase and construction of property, plant and equipment	(1,418,125)	(3,483,959)	(3,986,836)
Addition to intangible assets	(30,604)	(14,074)	(27,800)
Increase in other non-current assets	(798,002)	(1,689,530)	(2,287,922)
(Purchase)/ disposal of short term investments (net)	(3,617,133)	3,839,438	3,879,944
Dividends received	17,008	135,595	153,783
Purchase of non-current financial assets	(1,738,276)	(6,465,209)	(12,296,084)
Acqusition of business, net of cash acquired	(210,795)	-	-
Proceeds from sale of property, plant and equipment	76,207	179,443	141,409
Net cash flow used in investing activities	(7,719,720)	(7,498,296)	(14,423,506)

8

Softlogic Holdings PLC

CONSOLIDATED CASH FLOW STATEMENT

	Un-audited	Un-audited	Un-audited
	9 months to	9 months to	12 months to
In Rs. '000	31-12-2023	31-12-2022	31-03-2023
CASH FLOWS FROM/ (USED IN) FINANCING ACTIVITIES
Proceeds from shareholders with non-controlling interest on issue
of equity shares in subsidiaries	-	2,374	2,374
Direct cost on issue of shares	-	-	(1,646)
Dividend paid to non-controlling interest	(65,159)	(75,950)	(1,406,972)
Increase in interest in subsidiaries	(11,175)	(32,771)	(33,085)
Proceeds from long term borrowings	3,047,976	9,250,157	11,092,410
Repayment of long term borrowings	(5,293,436)	(8,222,202)	(9,236,363)
Repayment of lease liabilities	(2,085,469)	(1,837,927)	(2,610,230)
Increase/ (decrease) in other non-current financial liabilities	(13,907)	1,045	39,077
Proceeds from/ (repayment of) other current financial liabilities
(net)	(890,789)	15,669,104	15,649,820
Net cash flow from/ (used in) financing activities	(5,311,959)	14,753,830	13,495,385
NET DECREASE IN CASH AND CASH EQUIVALENTS	(6,786,901)	(3,910,331)	(7,986,287)
CASH AND CASH EQUIVALENTS AT THE BEGINNING	4,636,628	12,620,733	12,620,733
Effect of exchange rate changes	193	774	2,182
CASH AND CASH EQUIVALENTS AT THE END	(2,150,080)	8,711,176	4,636,628
ANALYSIS OF CASH AND CASH EQUIVALENTS
Favourable balances
Cash in hand and at Bank	3,206,091	4,268,349	5,260,169
Short term investments	4,656,833	14,236,751	8,759,152
Unfavourable balances
Bank overdrafts	(10,013,004)	(9,793,924)	(9,382,693)
Cash and cash equivalents	(2,150,080)	8,711,176	4,636,628

Note : Figures in brackets indicate deductions.

The above figures are not audited unless otherwise stated.

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