ORIENT FINANCE PLC

Interim Financial Statements

For the Period Ended 31st March 2024

0

ORIENT FINANCE PLC

Page 01

STATEMENT OF COMPREHENSIVE INCOME

For the

Quarter Ended 31st March

Year Ended 31st March

2024

2023

2024

2023

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Unaudited

Audited

Unaudited

Audited

Income

1,289,005

1,059,211

4,868,268

3,820,227

Interest income

1,189,229

980,938

4,601,527

3,593,059

Interest expenses

(603,649)

(767,352)

(2,807,119)

(2,600,023)

Net interest income

585,580

213,586

1,794,408

993,036

Fee and commission income

60,068

32,441

162,374

105,892

Other operating income

39,708

45,832

104,367

121,277

Total operating income

685,356

291,859

2,061,149

1,220,205

Impairment charges for loans and receivables to customers

5,460

14,234

(140,179)

(103,024)

Net operating income

690,816

306,093

1,920,970

1,117,181

Operating expenses

Personnel expenses

(162,408)

(162,259)

(666,360)

(620,552)

Depreciation and amortization

2,929

(43,474)

(83,286)

(117,865)

Other operating expenses

(206,368)

(108,499)

(621,593)

(401,718)

Operating profit/(loss) before Value Added Tax

324,969

(8,139)

549,731

(22,954)

Tax on financial services

(73,058)

(11,915)

(200,219)

(46,611)

Profit /(loss) before income tax

251,911

(20,054)

349,512

(69,565)

Income tax expense

(1,747)

2,693

(1,747)

(2,480)

Profit/(loss) for the year

250,164

(17,361)

347,765

(72,045)

Other comprehensive income/(expenses)

Other comprehensive income to be reclassified to profit

or loss in subsequent periods

Fair value gain / (loss) on investment

in treasury bonds /quoted shares

(79,997)

23,514

(17,701)

19,194

Other comprehensive income not to be reclassified to

profit or loss in subsequent periods

Actuarial gain on retirement benefit plan

(6,848)

1,743

(6,848)

1,522

Deferred tax effect on above

(2,054)

(523)

(2,054)

457

Total comprehensive income/(expenses) for the year

net of tax

161,265

7,373

321,162

(50,873)

Basic earnings per share (Rs.)

1.19

(0.08)

1.65

(0.34)

0.76392492

Figures in brackets indicate deductions.

Colombo

29th May 2024

ORIENT FINANCE PLC

Page 02

STATEMENT OF FINANCIAL POSITION

As At 31st March

2024

2023

Rs. '000

Rs. '000

ASSETS

Unaudited

Audited

Cash and cash equivalents

420,293

307,894

Financial assets - fair value through other comprehensive income

932,992

1,262,914

Loans and receivables to customers

15,658,739

12,941,011

Investments with banks and other financial institutions

342,773

236,013

Other assets

940,365

657,441

Real estate stock

10,968

10,657

Deferred tax asset

365,776

369,577

Goodwill

564,546

564,546

Brand value

235,880

235,880

Intangible assets

12,686

25,098

Property, plant and equipment

143,654

70,733

Right of use assets

126,494

96,793

Investment properties

721,430

690,316

Total assets

20,476,596

17,468,873

LIABILITIES

Due to banks - bank overdrafts

233,791

240,846

Deposits from customers

13,556,431

10,759,499

Interest bearing borrowings

2,115,120

2,606,632

Lease Liability -right-of-use assets

60,455

46,223

Other liabilities

843,359

482,217

Retirement benefit obligation

65,271

52,449

Total liabilities

16,874,427

14,187,866

EQUITY

Stated capital

2,431,879

2,431,879

Statutory reserve fund

393,125

375,737

Revaluation reserve

141,121

141,121

Retained earnings

636,044

332,270

Total equity

3,602,169

3,281,007

Total equity and liabilities

20,476,596

17,468,873

Net assets per share

17.06

15.54

Figures in brackets indicate deductions.

The financial statements are in compliance with the requirements of the Companies Act No.07 of 2007.

Sgd

Sgd

M A M Arashath

K.M.M.Jabir

Head of Finance

Chief Executive Officer/Director

The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed for and on behalf of the Board.

Sgd

Sgd

Rajendra Theagarajah

Prakash Schaffter

Chairman

Director

Colombo

29th May 2024

ORIENT FINANCE PLC

Page 03

STATEMENT OF CHANGES IN EQUITY

For the year ended 31st March

Retained

earnings/

Statutory reserve

Revaluation

(accumulated

Stated Capital

fund

reserve

losses)

Total

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Balance as at 01st April, 2022 (Audited)

2,431,879

375,737

141,121

383,143

3,331,880

Profit/(Loss) for the year

-

-

-

(72,046)

(72,046)

Other comprehensive income/ (expense) net of taxes

-

-

-

21,173

21,173

Balance as at 31st March 2023

2,431,879

375,737

141,121

332,270

3,281,007

Balance as at 01st April, 2023 (Audited)

2,431,879

375,737

141,121

332,270

3,281,007

Profit/(Loss) for the year

-

-

-

347,765

347,765

Transfer to statutory reserve

17,388

(17,388)

-

Other comprehensive income/ (expense) net of taxes

-

-

-

(26,603)

(26,603)

Balance as at 31st March 2024

2,431,879

393,125

141,121

636,044

3,602,169

Figures in brackets indicate deductions.

Colombo

29th May 2024

ORIENT FINANCE PLC

Page 04

STATEMENT OF CASH FLOWS

For the year ended 31st March

2024

2023

Rs. '000

Rs. '000

Unaudited

Audited

Cash flows from operating activities

Profit/(loss) before income tax

349,512

(69,566)

Adjustment for:

Depreciation/amortization

83,286

117,865

(Profit)/ loss on disposal of property, plant and equipment

-

(1)

Impairment charges for loans and receivables to customers

140,179

103,024

Finance expenses

2,807,119

2,600,023

Fair value gain on investment properties

(31,114)

(41,250)

Investment income

(692,272)

(218,411)

Provision for gratuity

16,621

14,355

Operating profit/(loss) before working capital changes

2,673,331

2,506,039

Change in loans and receivables to customers

(2,857,907)

1,081,777

Change in other assets

(282,924)

(402,029)

Change in deposits from customers

2,691,130

1,215,291

Change in other liabilities

388,546

(32,690)

2,612,176

4,368,388

Rent Paid

(92,511)

(79,099)

Interest paid

(2,259,330)

(1,337,431)

Gratuity paid

(10,647)

(4,489)

Net cash from/(used in) operating activities

249,688

2,947,369

Cash flows from investing activities

Acquisition of property, plant and equipment and intangible assets

(94,156)

(50,527)

Proceeds from sale of property, plant and equipment

-

113

Proceeds from sale of investment property

-

21,500

Expenses incurred for real estate stock

(312)

(1,319)

Net change in financial assets - FVTOCI

304,872

(518,015)

Net change in investments with bank and other financial institutions

(111,284)

7,177

Investment income received

704,145

15,738

Net cash generated from/(used in) investing activities

803,265

(525,333)

Cash flows from financing activities

682,935

Interest bearing borrowings obtained

5,346,000

Repayment of interest bearing borrowings

(5,831,476)

(1,826,049)

Interest paid on borrowings

(448,023)

(827,742)

Net cash generated from/(used in) financing activities

(933,499)

(1,970,856)

Net change in cash and cash equivalents

119,454

451,180

Cash and cash equivalents at the beginning of the year

67,048

(384,132)

Cash and cash equivalents at the end of the year (Note A)

186,502

67,048

Note A

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

Cash in hand

350,987

222,628

Cash at bank

69,306

85,266

Bank overdrafts - secured

(233,791)

(240,846)

186,502

67,048

Figures in brackets indicate deductions.

Colombo

29th May 2024

ORIENT FINANCE PLC

NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL REPORTING BY SEGMENTS

Page 05

The company has five reportable segments, as described below, which are the company's strategic divisions. The strategic divisions offer different products and services, which are managed separately because they require different technology and marketing strategies. For each of the strategic divisions, the company's management reviews internal management reports on at least a monthly basis. The following summary describes the operations in each of the company's reportable segments.

  1. Hire purchase, finance leasing- Provision of hire purchase and leasing facilities to customers
  2. Loans - Provision of Loan facilities to customers
  3. Factoring - Debt factoring
  4. Gold Loan - Provision of loans against gold
  5. Others

Finance lease & Hire purchases

Loans

Factoring

Pawning

Others

Total

For the year ended 31st March

2024

2023

2024

2023

2024

2023

2024

2023

2024

2023

2024

2023

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Interest income

2,421,088

1,965,896

115,270

142,673

4,528

4,315

1,368,369

1,261,763

692,272

218,412

4,601,527

3,593,059

Fee and commission income

149,867

80,217

2,702

2,308

46

717

5,460

-

4,299

22,650

162,374

105,892

Other income

19,244

32,283

1,751

12,135

-

-

-

-

83,372

76,858

104,367

121,276

Total segmental income

2,590,199

2,078,396

119,723

157,116

4,574

5,032

1,373,829

1,261,763

779,943

317,920

4,868,268

3,820,227

Less: Interest expense

(1,676,962)

(1,414,543)

(100,175)

(106,932)

(8,019)

(3,425)

(810,487)

(858,748)

(211,476)

(216,374)

(2,807,119)

(2,600,022)

Segmental results

913,237

663,853

19,548

50,184

(3,445)

1,607

563,342

403,015

568,467

101,546

2,061,149

1,220,205

Depreciation and amortization

(44,313)

(64,125)

(2,048)

(4,847)

(78)

(155)

(23,503)

(38,929)

(13,344)

(9,809)

(83,286)

(117,865)

Impairment charge

(189,792)

(68,334)

35,425

(30,613)

17,886

(6,331)

(3,698)

3,841

-

(1,587)

(140,179)

(103,024)

Other expenses

(685,265)

(556,167)

(31,674)

(42,043)

(1,210)

(1,347)

(363,461)

(337,640)

(206,343)

(85,073)

(1,287,953)

(1,022,270)

Tax on Financial Services and Income tax

(120,654)

(26,708)

(7,207)

(2,019)

(577)

(65)

(58,313)

(16,214)

(15,215)

(4,085)

(201,966)

(49,091)

Profit/(loss) after tax

(126,787)

(51,481)

14,044

(29,338)

12,576

(6,291)

114,367

14,073

333,565

992

347,765

(72,045)

Segmental assets

12,232,640

7,857,567

730,731

605,754

58,497

31,621

5,912,118

4,483,270

1,542,610

4,490,661

20,476,596

17,468,873

Segmental liabilities

10,080,718

6,381,758

602,183

491,981

48,207

25,682

4,872,080

3,641,222

1,271,239

3,647,223

16,874,427

14,187,866

Page 06

NOTES TO THE FINANCIAL STATEMENTS

  1. These Interim Financial Statements of the Company have been prepared based on the Sri Lanka Accounting Standards that came into effect from January 01, 2012 (SLFRS/LKAS). There were no changes to the Accounting Policies and methods of computation since the publication of the Audited Financial Statements for the Year Ended 31 March 2023. Further, these Interim Financial Statements have been prepared in compliance with the requirements of the Sri Lanka Accounting Standard 34 (LKAS 34) on Interim Financial Reporting.
  2. There are no material events that took place after the reporting date that require adjustments to or disclosure in the Financial Statements.
  3. All known expenses have been provided for in these Financial Statements.
  4. There are no significant changes in the nature of the Contingent Assets or Contingent Liabilities which were disclosed in the Audited Financial Statements for the year ended 31st March 2023.

Ordinary Share Information

The Company's Ordinary Shares are listed on the Second Board of the Colombo Stock Exchange (CSE).

Stated Capital

31-Mar-24

31-Mar-23

Value of Ordinary Shares (Rs.)

2,431,879,000

2,431,879,039

No. of Ordinary Shares

211,101,155

211,101,155

Share Price During the Period

For the Quarter Ended

31-Mar-24

31-Mar-23

Highest

(Rs)

9.30

9.20

Lowest

(Rs)

7.00

7.10

Closing

(Rs)

8.40

8.90

ORIENT FINANCE PLC INTERIM ACCOUNTS

ORIENT FINANCE PLC

Page 07

NOTES TO THE FINANCIAL STATEMENTS

Shareholders as at 31st March 2024

Name

No. of Shares

%

1

Janashakthi Ltd

93,644,438

44.36

2

Seylan Bank PLC/Janashakthi Limited (collateral)

90,000,000

42.63

3

Seylan Bank PLC/Janashakthi Capital Limited

11,810,999

5.59

4

First Capital Limited

2,138,299

1.01

5

DFCC Bank PLC/G.A.C. De Silva

1,536,550

0.73

6

Peoples Leasing and Finance PLC/ Suhada Gas Distributors (Pvt) Ltd

888,100

0.42

7

Commercial Bank of Ceylon PLC /D. Ramachandran

859,222

0.41

8

Commercial Bank of Ceylon PLC /Janashakthi Limited

555,057

0.26

9

Mr. R.A.B.K. Kumara

500,000

0.24

10

Mr. A. Rajaratnam

413,983

0.20

11

Mrs. I.P.I.L. Gunathilaka

406,750

0.19

12

Mr. L.P.Mendis

358,695

0.17

13

Mr. P.C. Priyanjitha

302,000

0.14

14

Peoples Leasing & Finance PLC/ Mr. A. Rajaratnam

300,000

0.14

15

Mr. S.M.P.B. Samarapperuma

270,692

0.13

16

Seylan Bank PLC/ Haloluwa Gedara Nilupul Gamini Haloluwa

246,886

0.12

17

Mr. M.K. De livera

207,629

0.10

18

Mrs. A.S. De Alwis

204,428

0.10

19

Mr. L.L.P.D.E.S. Karunasekera

192,028

0.09

20

MR. W.M.W.P.B. Weerakoon

171,520

0.08

21

Hatton National Bank PLC/ Koralagodage Don Sahan Rachitra Kulatunga & Mrs. Oshadhini Upulika

169,450

0.08

Kumari Jayasundara

22

MR. S. Senthimaaran

150,000

0.07

23

MR. G.P.P. Abeywickrama

144,950

0.07

24

MR. D. Ramachandran

144,350

0.07

25

Assetline Finance Limited/ Suhada Gas Distributors (Pvt) Ltd

143,810

0.07

Others

5,341,319

2.53

Total

211,101,155

100

Directors' Shareholding as at 31st March 2024

Name of the Director

No. of Shares

%

1

Mr. Prakash Anand Schaffter

10

-

2

Mr. Rajendra Thegarajah

-

-

3

Ms. M.D.A. Perera

-

-

4

Ms. N.I. Goonesekara

-

-

5

Mr. N.S.S. Cooray

-

-

6

Mr. K.M.M. Jabir

-

-

7

Mr. R.M.D.J. Ratnayake

-

-

8

Mr. Nalin Karunaratne

-

-

9

Ms. Manohari Abeysekera

-

-

10

Ms. Samdamali Chandrasekara

-

-

Total

10

CEO's Shareholding as at 31st March 2024

Mr. K.M.M. Jabir

-

-

Public Holding as at 31st March 2024

12,952,342

Number of Public Shareholders

903

Public Shareholding Percentage

6.14%

Float Adjusted market capitalization (Rs.)

108,799,673

The CSE granted an extension in terms of section 7.13.3 (iii) of the Listing Rules to comply with the minimum public holding requirement until 04th March 2021. Due to the above non-compliance, currently the securities of the Company have been transferred to the Second Board with effect from 12th March 2021 at the expiration of extensions granted. Entities that are not compliant only with the minimum public holding requirement are listed on the Second Board.

ORIENT FINANCE PLC INTERIM ACCOUNTS

ORIENT FINANCE PLC

CORPORATE INFORMATION

NAME OF THE COMPANY

HEAD OFFICE

Orient Finance PLC

61, Dharmapala Mawatha, Colombo 07.

+94 117 577 577

LEGAL FORM

A public limited liability company incorporated on 24th July 1981 under the Companies Ordinance No. 51 of 1938 and was re-registered in terms of the Companies Act No. 07 of 2007 on 27th July 2009.

The Company is registered under the Finance Leasing Act No. 56 of 2000 and Finance Business Act No. 42 of 2011.

+94 117 577 511 www.orientfinance.lk orientfinance@orient.lk

CORPORATE OFFICE

19, Railway Avenue, Nugegoda. +94 117 577 577 +94 117 577 511

COMPANY REGISTRATION NUMBER

COMPANY SECRETARY

PB 1079 PQ (previous PVS/PBS 7651)

Janashakthi Corporate Services Limited

No. 02, Deal Place, Colombo 03.

TAX PAYER IDENTIFICATION NUMBER

+94 112 145 031

104076513

secretaries@jcsl.lk

BOARD OF DIRECTORS

EXTERNAL AUDITORS

Mr. Prakash Anand Schaffter

BDO Partners, Chartered Accountants,

Mr. Rajendra Thegarajah

"Charter House",

Ms. M.D.A. Perera

65/2, Sir Chittampalam A Gardiner Mawatha, Colombo 02.

Ms. N.I. Goonesekara

+94 112 421 878

Mr. N.S.S. Cooray

+94 112 336 064

Mr. K.M.M. Jabir

Mr. R.M.D.J. Ratnayake

BANKERS

Mr. Nalin Karunaratne

Commercial Bank of Ceylon PLC

Ms. Manohari Abeysekera

Bank of Ceylon

Ms. Samdamali Chandrasekara

NDB Bank PLC

Seylan Bank PLC

STOCK EXCHANGE LISTING

Sampath Bank PLC

The Company is listed on the Second Board of the Colombo Stock

People's Bank

Exchange of Sri Lanka.

Nations Trust Bank PLC

Pan Asia Bank PLC

REGISTERED OFFICE

DFCC Bank PLC

No. 02, Deal Place, Colombo 03.

+94 112 639 878

CREDIT RATING AGENCY

+94 112 639 868

Lanka Rating Aqency Limited (LRA)

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Orient Finance plc published this content on 30 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2024 11:06:38 UTC.