Sarvodaya Development Finance : Interim Financial Statement for the nine months ended 31st December 2022

Interim Financial Statements

For the Nine Months Ended 31st December 2022

SARVODAYA DEVELOPMENT FINANCE PLC

CONTENTS

Statement of Profit or Loss and Other Comprehensive Income	1
Statement of Financial Position	2
Statement of Changes in Equity	3
Statement of Cash Flows	4
Notes to the Interim Financial Statements
1. Analysis of Financial Instruments by Measurement Basis	5
2. Fair Value Measurement Hierarchy	6
3. Financial Reporting By Segment	7
4. Share Information	8
5. Directors' and Chief Executive Officer's holding in Shares of the Company	8
6. Top 20 Shareholders	8
7. Public Shareholding and Float adjusted Market Capitalisation	8
8. Stated Capital	9
9. IPO Fund Utilisation	9
10. Explanatory Notes	10
Corporate Information	11

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		For the nine months ended	For the three months ended
		31st	31st		31st	31st
		Dec 2022	Dec 2021		Dec 2022	Dec 2021
		Un-Audited	Un-Audited	Variance	Un-Audited	Un-Audited	Variance
		LKR	LKR	%	LKR	LKR	%
Income	1,850,816,610	1,282,010,481	44.4%	672,818,520	468,754,564	43.5%
Interest Income	1,751,363,522	1,227,805,454	42.6%	641,163,237	441,990,590	45.1%
Interest Expenses	(869,207,645)	(413,089,813)	110.4%	(333,366,535)	(141,368,521)	135.8%
Net Interest Income	882,155,878	814,715,641	8.3%	307,796,702	300,622,068	2.4%
Net Fee and Commission Income	77,087,206	37,564,500	105.2%	21,950,801	18,723,438	17.2%
Other Operating Income	22,365,881	16,640,526	34.4%	9,704,482	8,040,535	20.7%
Total Operating Income	981,608,965	868,920,668	13.0%	339,451,985	327,386,042	3.7%
Impairment Charges for Loans
and Other Losses	(63,104,542)	(105,704,670)	-40.3%	5,531,084	(30,627,785)	-118.1%
Net Operating Income	918,504,423	763,215,997	20.3%	344,983,069	296,758,256	16.3%
Operating Expenses
Personnel Expenses	(348,034,196)	(301,025,290)	15.6%	(117,262,975)	(103,979,810)	12.8%
Depreciation of Property,
Plant and Equipment	(21,823,231)	(26,151,982)	-16.6%	(7,428,160)	(7,973,152)	-6.8%
Amortisation of Right of Use Assets	(52,407,150)	(47,293,577)	10.8%	(17,404,923)	(15,283,016)	13.9%
Amortisation of Intangible Assets	(947,590)	(2,303,866)	-58.9%	(289,159)	(661,192)	-56.3%
Other Operating Expenses	(216,581,139)	(182,890,575)	18.4%	(78,152,834)	(63,599,437)	22.9%
Operating Profit Before Tax on
Financial Services	278,711,117	203,550,708	36.9%	124,445,019	105,261,651	18.2%
Tax on Financial Services	(98,338,752)	(64,560,793)	52.3%	(40,532,734)	(26,645,858)	52.1%
Profit Before Taxation	180,372,365	138,989,915	29.8%	83,912,285	78,615,793	6.7%
Income Tax Expenses	(39,961,105)	(20,967,767)	90.6%	(16,453,069)	(11,626,496)	41.5%
Profit for the Period	140,411,260	118,022,148	19.0%	67,459,216	66,989,298	0.7%
Total Comprehensive Income/
(Expenses) for the Period	140,411,260	118,022,148	19.0%	67,459,216	66,989,298	0.7%

Basic Earnings Per Share *

0.94

1.13

-17.2%

0.45

0.64

-29.9%

* Calculated based on profit/(loss) for the period

Sarvodaya Development Finance PLC		Interim Financial Statements	1

STATEMENT OF

FINANCIAL POSITION

As at	31st	31st
	Dec 2022	March 2021
	Un-Audited	Audited	Variance
	LKR	LKR	%
Assets
Cash and Cash Equivalents	416,604,072	92,132,395	352.2%
Financial Investments	530,463,052	532,667,038	-0.4%
Other Financial Assets	863,905	814,391	6.1%
Financial Assets at Amortised Cost - Loans and Receivables	5,113,227,149	5,110,595,093	0.1%
Financial Assets at Amortised Cost - Lease Rentals Receivables	4,358,896,078	4,768,166,996	-8.6%
Other Non Financial Assets	138,650,464	162,122,502	-14.5%
Investment Property	234,257,500	234,257,500	-
Property, Plant and Equipment	132,850,855	139,267,592	-4.6%
Right-of-use Lease Assets	102,447,899	129,533,191	-20.9%
Intangible Assets	3,980,196	4,927,786	-19.2%
Total Assets	11,032,241,170	11,174,484,484	-1.3%
Liabilities
Due to Banks and Other Institutions	1,644,615,991	2,320,184,829	-29.1%
Financial Liabilities at Amortised Cost - Due to Customers	5,596,975,313	4,729,097,119	18.4%
Lease Liabilities	118,142,340	149,951,692	-21.2%
Other Non Financial Liabilities	224,744,008	596,809,388	-62.3%
Current Tax Liabilities	4,594,028	21,170,445	-78.3%
Post Employment Benefit Liability	36,938,408	32,066,158	15.2%
Deferred Tax Liabilities	35,822,731	20,409,737	75.5%
Total Liabilities	7,661,832,819	7,869,689,368	-2.6%
Shareholders' Funds
Stated Capital	2,696,113,032	2,696,113,032	-
Retained Earnings	502,929,769	437,316,534	15.0%
Reserves	171,365,548	171,365,549	(0.00)
Total Shareholders' Funds	3,370,408,351	3,304,795,115	2.0%
Total Liabilities and Shareholders' Funds	11,032,241,170	11,174,484,484	-1.3%
Commitments and Contingencies	4,290,100	4,290,100	-
Net Assets Value per Share	22.53	22.09	1.99%

Certification

We certify that these Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

Sgd	Sgd
Mahesh Jayasanka	Nilantha Jayanetti
Chief Manager-Finance	Chief Executive Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Signed for and on behalf of the Board of Directors by;

Sgd	Sgd
Channa de Silva	Dammika Ganegama
Chairman	Senior Director
9th February 2023
Colombo

2	Sarvodaya Development Finance PLC Interim Financial Statements

STATEMENT OF

CHANGES IN EQUITY

For the nine months ended 31st December

	Stated	Statutory	Revaluation	Retained	Total
	Capital	Reserves	Reserves	Earnings	Equity
	LKR	LKR	LKR	LKR	LKR
Balances as at 01 April 2021 (Audited)	1,694,137,046	104,077,473	56,514,761	326,655,944	2,181,385,226
Comprehensive Income for the Period
Profit for the Period	-	-	-	118,022,148	118,022,148
Other Comprehensive Income	-	-	-	-	-
Total Comprehensive Income for the period	-	-	-	118,022,148	118,022,148
Transactions with Equity Holders,
Recognised Directly in Equity
Transfer to Statutory Reserves Fund	-	-	-	-	-
Share Issue	951,704,977	-	-	-	-
Expenses related to the Share Issue	-	-	-	-	-
Total transaction with equity holders	951,704,977	-	-	-	-
Balances as at 31 Dec 2021 (Un-Audited)	2,645,842,023	104,077,473	56,514,761	444,678,092	3,251,112,351
Balances as at 01 April 2022 (Audited)	2,696,113,032	114,850,787	56,514,761	437,316,534	3,304,795,115
Comprehensive Income for the Period
Profit for the Period	-	-	-	140,411,260	140,411,260
Other Comprehensive Income	-	-	-	-	-
Total Comprehensive Income for the period	-	-	-	140,411,260	140,411,260
Transactions with Equity Holders,
Recognised Directly in Equity
Transfer to Statutory Reserves Fund	-	-	-	-	-
Share Issue	-	-	-	-	-
Expenses related to the Share Issue	-	-	-	-	-
Interim Dividend	-	-	-	(74,798,026)	(74,798,026)
Total transaction with equity holders	-	-	-	(74,798,026)	(74,798,026)
Balances as at 31 Dec 2022 (Un-Audited)	2,696,113,032	114,850,787	56,514,761	502,929,768	3,370,408,351

Sarvodaya Development Finance PLC		Interim Financial Statements	3