BRAC LANKA FINANCE PLC FINANCIAL STATEMENTS ?· Brac Lanka Finance PLC was incorporated in January 1961 ... The Company is registered with the Central Bank of Sri Lanka as a Finance Company under the provision

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  • BRAC LANKA FINANCE PLC

    FINANCIAL STATEMENTS

    FOR THE YEAR ENDED 31 MARCH 2017

  • BRAC LANKA FINANCE PLC

    STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

    For the year ended 31 March 2017 2016

    Note Rs. Rs.

    Interest Income 4 3,385,929,995 1,863,178,981

    Interest Expense 5 (1,283,578,463) (581,161,462)

    Net Interest Income 2,102,351,532 1,282,017,519

    Other Operating Income 6 9,083,471 13,055,079

    Personnel Expenses (510,089,816) (347,153,793)

    General & Administration Expenses (770,810,558) (522,979,493)

    Depreciation and Amortization (14,975,538) (10,365,728)

    Allowance for Impairment & Write Offs 7 (338,894,294) (64,757,825)

    Profit from Operations 476,664,797 349,815,759

    Value Added Tax (VAT) on Financial Services and NBT 8 (123,872,402) (89,430,784)

    Profit Before Tax 9 352,792,395 260,384,975

    Income Tax Expense 10 (132,865,385) (108,864,214)

    Profit for the Year 219,927,010 151,520,761

    Other Comprehensive Income

    Items that will never be reclassified to profit or loss

    Actuarial Gain/ (Losses) on defined benefit plan 27.1.3 2,965,243 (13,311,338)

    Items that are or may be reclassified to profit or loss

    Net change in fair value of available-for-sale financial assets 13.3 (1,961,799) (242,523)

    Income tax recognised in other comprehensive income 28.1 (830,268) -

    Total Other Comprehensive Income, net of tax 173,176 (13,553,861)

    Total Comprehensive Income for the year 220,100,186 137,966,900

    Basic and Diluted Earnings Per Share 11 2.08 1.43

    Figures in brackets indicate deductions.

    The annexed notes to the financial statements on pages 5 through 49 form an integral part of these financial statements

    1

  • BRAC LANKA FINANCE PLC

    STATEMENT OF CHANGES IN EQUITY

    For the year ended 31 March,

    Stated Fair Value Retained

    Capital Reserve on AFS Earnings

    Rs. Rs. Rs. Rs. Rs.

    Balance as at 1 April 2015 171,180,454 67,075,582 (146,947) 527,685,321 765,794,410

    Comprehensive income for the year

    Profit for the Year - - - 151,520,761 151,520,761

    Acturial losses on defined benefit plan - - - (13,311,338) (13,311,338)

    Net change in fair value of available-for-sale financial assets - - (242,523) - (242,523)

    - - (242,523) (13,311,338) (13,553,861)

    Total comprehensive income for the year - - (242,523) 138,209,423 137,966,900

    Transactions recorded directly in equity

    Transfer to/ (from) during the year - 7,576,038 - (7,576,038) -

    Total transactions recorded directly in equity - 7,576,038 - (7,576,038) -

    Balance as at 31 March 2016 171,180,454 74,651,620 (389,470) 658,318,706 903,761,310

    Balance as at 1 April 2016 171,180,454 74,651,620 (389,470) 658,318,706 903,761,310

    Comprehensive income for the year

    Profit for the Year - - - 219,927,010 219,927,010

    Acturial gain on defined benefit plan - - - 2,965,243 2,965,243

    Net change in fair value of available-for-sale financial assets - - (1,961,799) - (1,961,799)

    Tax on Other Comprehensive Income - - - (830,268) (830,268)

    - - (1,961,799) 2,134,975 173,176

    Comprehensive income for the year - - (1,961,799) 222,061,985 220,100,186

    Transactions recorded directly in equity

    Transfer to/ (from) during the year - 10,996,351 - (10,996,351) -

    Total transactions recorded directly in equity - 10,996,351 - (10,996,351) -

    Balance as at 31 March 2017 171,180,454 85,647,971 (2,351,269) 869,384,340 1,123,861,496

    The annexed notes to the financial statements on pages 5 through 48 form an integral part of these financial statements

    figures in brackets indicate deductions.

    Revenue

    Reserves Total Equity

    Capital Reserves

    Statutory

    Reserve Fund

    3

  • BRAC LANKA FINANCE PLC

    CASH FLOW STATEMENT

    For the year ended 31 March 2017 2016

    Note Rs. Rs.

    Cash Flows from Operating Activities

    Profit Before Tax 352,792,395 260,384,975

    Adjustment for:

    Gain on sale of Property, Plant and Equipment - (1,470,000)

    Depreciation and amortization 21 14,975,538 10,365,728

    Provision for employee benefits 27.1.2 6,055,060 4,311,599

    Net impairment loss on financial assets 7 341,546,357 64,757,825

    Investment Income 4 (117,411,272) (24,507,428)

    Interest Expense 5 1,283,578,463 577,931,525

    Dividend Income 6 (64,350) -

    Provision made /(reversal) for repossess vehicles 7 (2,652,063) 3,570,578

    Operating profit before working capital changes 1,878,820,128 895,344,801

    Working capital changes

    Increase in trade and other payables 1,458,758,062 3,960,338,597

    (Increase)/decrease in investment in leases and hire purchases (4,152,684) 6,303,514

    (Increase) in investment in advances and other loans (3,559,296,522) (4,925,460,253)

    Decrease in inventories 1,723,443 2,867,740

    Decrease in trade and other receivables 7,916,467 475,727,187

    Increase in deposits from customers 1,632,305,901 323,182,659

    Cash generated from operations 1,416,074,795 738,304,246

    Finance cost paid (1,296,618,476) (521,427,519)

    Income tax and Economic Service Charge paid 24 (138,161,317) (20,668,000)

    Employee Benefits Paid 27.1.1 (249,704) (3,137,604)

    Net cash (used in)/ generated from operating activities (18,954,702) 193,071,123

    Cash Flows from Investing Activities

    Purchase and acquisition of Property, Plant and Equipment 21 (85,650,928) (57,592,618)

    Net additions to investment securities (256,542,150) (745,606,303)

    Net investment in term deposits (349,077,329) -

    Proceeds from the sale of Property, Plant and Equipment/write off 415,843 3,066,439

    Interest received 103,058,295 24,507,428

    Dividend received 64,350 -

    Net cash flow used in investing activities (587,731,919) (775,625,054)

    Cash Flows from Financing Activities

    Proceeds from long-term interest bearing loans and borrowings 200,000,000 2,234,118,997

    Repayments of long-term interest bearing loans and borrowings 23 (90,108,666) (1,501,129,079)

    Net cash generated from financing activities 109,891,334 732,989,918

    Net (decrease)/increase in cash and cash equivalents during the year (496,795,287) 150,435,987

    Cash and cash equivalents at the beginning of the year 170,128,728 19,692,741

    Cash and cash equivalents at the end of the year 12 (326,666,559) 170,128,728

    Analysis of cash and cash equivalents at the end of the year

    Cash in hand and favourable bank balances 87,570,777 594,238,040

    Unfavourable bank balances used for cash management purposes (414,237,336) (424,109,313)

    (326,666,559) 170,128,728

    The annexed notes to the financial statements on pages 5 through 48 form an integral part of these financial statements

    Figures in brackets indicate deductions.

    4

  • BRAC Lanka Finance PLC

    NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2017

    5

    1. GENERAL

    1.1 Corporate Information

    Brac Lanka Finance PLC was incorporated in January 1961 (Formerly known as Nanda Investment PLC)

    and registered under the Companies Act No. 07 of 2007 and Finance Leasing Act No 56 of 2000.The

    company has obtained license to carry on finance business under the finance business act no.42 of 2011

    The Companys registered office is No. 100/1, Sri Jayewardenepura Mawatha, Rajagiriya, Sri Lanka and

    the current principal place of bu