INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2021

MULTI FINANCE PLC

( Company Registration No: PB 891 PQ )

The Fairways, No.100, Buthgamuwa road, Rajagiriya.
MULTI FINANCE PLC
INTERIM FINANCIAL STATEMENTS
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
30.09.2021 30.09.2020 Variance 30.09.2021 30.09.2020 Variance
Fav/ Fav/
(Unaudited) (Unaudited) (Adverse) (Unaudited) (Unaudited) (Adverse)
Rs. Rs. % Rs. Rs. %

Income 30,025,210 30,488,222 (2) 58,905,458 65,885,732 (11)

Interest income 24,430,993 23,462,613 4 50,167,490 56,558,501 (11)

Interest expenses (6,524,804) (10,448,067) 38 (13,507,718) (25,033,158) 46
Net interest income 17,906,189 13,014,546 38 36,659,772 31,525,343 16
Fee and commission income 2,968,674 2,978,054 (0.3) 4,841,161 4,789,954 1
Other income 2,625,543 4,047,555 (35) 3,896,807 4,537,276 (14)
Net income from operations 23,500,406 20,040,155 17 45,397,740 40,852,573 11

Operating expenses
Personnel cost (18,378,570) (20,360,549) 10 (37,108,535) (40,354,899) 8
Depreciation of Property Plant & Equipments and amortisation of
(2,339,891) (2,745,819) 15 (4,720,180) (5,631,149) 16
Intangible Assets
Amortization of Leased Assets (3,866,803) (3,441,565) (12) (7,755,673) (7,219,677) (7)
Other operating expenses (8,937,343) (9,767,568) 8 (18,889,426) (18,453,961) (2)
Total operating expenses (33,522,607) (36,315,501) 8 (68,473,814) (71,659,686) 4

Profit/(Loss) before impairment and taxation (10,022,201) (16,275,346) 38 (23,076,074) (30,807,112) 25

Impairment (charge)/reversal for loans and other losses (3,829,946) 12,544,428 (131) (8,477,615) 5,238,414 (262)
Profit/(Loss) before taxation and VAT on Financial Services (13,852,147) (3,730,918) (271) (31,553,688) (25,568,699) (23)

Tax on Financial Services (407,214) - (100) (607,214) - (100)

Profit/(Loss) before taxation (14,259,361) (3,730,918) (282) (32,160,902) (25,568,699) (26)

Income Tax (Expense)/Reversal - - - - - -

Profit/(Loss) for the period (14,259,361) (3,730,918) (282) (32,160,902) (25,568,699) (26)

Other comprehensive income

Items that will not be reclassified to profit or loss
Remeasurement of retirement benefit obligation - - - - - -
Tax on actuarial gain - - - - - -
- - - - - -
Items that are or may be reclassified subsequently to profit or loss
Reclassification of Fair Value Through Other comprehensive income to
(50,308) - (100) (50,308) - (100)
Profit or Loss
Net change/(Loss) in fair value of financial assets measured at Fair Value
- - - - - -
Through Other Comprehensive Income
(50,308) - - (50,308) - -

Other comprehensive income for the period, net of tax (50,308) - - (50,308) - -

Total comprehensive income / (expense) for the period (14,309,668) (3,730,918) (284) (32,211,210) (25,568,699) (26)

Earnings/(Loss) per share (Rs.) (0.22) (0.06) (0.51) (0.40)

Figures in brackets indicate deductions.

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MULTI FINANCE PLC
INTERIM FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION As at 30.09.2021 As at 31.03.2021
Rs. Rs.
(Unaudited) (Audited)
Rs. Rs.
ASSETS
Cash and cash equivalents 24,357,619 23,195,923
Placements with Banks and other financial institutions 145,320,522 119,229,696
Rental receivable on Lease 99,210,687 155,459,039
Rental receivable on Hire Purchase 113,090 151,434
Advances and Other Loans 382,764,574 400,621,794
Other receivables 53,603,052 53,372,287
Repossessed Stock - 4,090,270
Income tax receivables 5,227,629 5,227,631
Financial Assets Measured at Fair Value Through Other
2,500 535,489
Comprehensive Income
Investment Property 68,333,000 68,333,000
Property, plant & equipment 7,442,774 11,999,774
Right of use Assets 19,583,894 27,402,094
Intangible assets 217,618 524,860
TOTAL ASSETS 806,176,961 870,143,291

LIABILITIES
Due to banks and financial institutions 6,785,584 3,128,745
Deposits due to customers 266,951,286 294,272,187
Other payables 40,588,473 41,641,352
Lease Liability 21,249,232 28,746,608
Retirement benefit obligation 8,961,608 8,502,410
TOTAL LIABILITIES 344,536,182 376,291,302

EQUITY
Stated capital 898,375,289 898,375,289
Statutory Reserve Fund 5,389,222 5,389,222
General Reserve 11,266,050 11,266,050
Fair Value Reserve - 50,308
Retained Earnings / (Accumulated Lossess) (453,389,782) (421,228,880)
TOTAL EQUITY 461,640,779 493,851,989

TOTAL LIABILITIES AND EQUITY 806,176,961 870,143,291

Net Assets Value Per Share (Rs.) 7.26 7.76

Figures in brackets indicate deductions.

It is certified that these Financial Statements have been prepared in compliance with the requirements of the
Companies Act No.7 of 2007.

Sgd.
Mr. A. M. Galbadaarachchi
Chief Financial 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 of Multi Finance PLC

Sgd. Sgd.
Mr. P. Jayasundera Imal Fonseka
Director / Chief Executive Officer Chairman

10th Nov 2021

Colombo

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MULTI FINANCE PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30TH SEP 2021

Stated Statutory General Fair Value Retained Total

Capital Reserve Fund Reserve Reserve Earnings/
(Accumulated
Losses)
Rs. Rs. Rs. Rs. Rs. Rs.

Balance as at 01st April 2020 898,375,289 5,389,222 11,266,050 247,199 (338,127,145) 577,150,615

Loss for the Period - - - - (25,568,699) (25,568,699)

Balance as at 30th Sep 2020 898,375,289 5,389,222 11,266,050 247,199 (363,695,843) 551,581,917

Balance as at 01st April 2021 898,375,289 5,389,222 11,266,050 50,308 (421,228,880) 493,851,989

Loss for the Period - - - - (32,160,902) (32,160,902)

Other comprehensive income net of tax for the year

Reclassification of Fair Value Through Other comprehensive
- - - (50,308) - (50,308)
income to Profit or Loss

Balance as at 30th Sep 2021 898,375,289 5,389,222 11,266,050 - (453,389,782) 461,640,779

Figures in brackets indicate deductions.

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MULTI FINANCE PLC
INTERIM FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2021 2020
(Unaudited) (Unaudited)

Rs. Rs.

Profit /(Loss) Before Taxation (32,160,902) (25,568,699)

Adjustments for :
Provision for Retirement Benefit Plans 459,198 459,198
Depreciation on Property, Plant and Equipment 4,412,938 5,086,844
Amortization of Leased Assets 7,755,673 7,219,677
Amortisation of Intangible Assets 307,242 544,305
(Profit)/Loss on Disposal of Property, Plant & Equipment (338,037) -
Impairment charge/(reversal) for loan and other advances 8,477,615 (5,238,414)
(Profit)/Loss on pawning auction (23,456) (22,299)
(Profit)/Loss on disposal of Repossessed Stock 32,855 991,744
Dividend Income - (80,000)
Interest expense on Lease Liability 1,361,747 1,444,273
Interest Accrued on Fixed Deposit Investments (1,043,688) (1,753,792)
Interest Accrued on Reverse Repurchase Agreements (1,765,394) (1,897,598)
Operating Profit before Working Capital Changes (12,524,209) (18,814,760)

Changes in working capital :

(Increase)/Decrease in Investment in Hire purchase, Lease and Other Loans 63,716,903 209,739,250
(Increase)/Decrease in Other Receivables (230,185) (910,322)
(Increase)/Decrease in Repossessed Stock 4,090,270 1,620,000
Increase/ (Decrease) in Deposits from Customers (27,320,901) (137,398,357)
Increase / (Decrease) in Amounts Due to Related Party (589,370) 533,458
Increase/ (Decrease) in Other Payables (463,509) (4,382,418)
Cash generated from / (Used in) Operating Activities 26,678,999 50,386,851

Income Tax Paid - -

Net cash generated from / (used in) Operating Activities 26,678,999 50,386,851

Cash flows from / (Used in) Investing Activities

Purchase of Property, Plant and Equipment (32,400) (30,886)
Proceeds from sale of Property, Plant & Equipment 514,500 -
Net Investment in Reverse Repurchase Agreements (25,000,000) (825,001)
Net Investment in Fixed Deposits - (5,000,000)
Cash Received from Pawning Auction 1,940,000 2,627,000
Dividend income Receipt - 80,000
Interest Received on Fixed Deposit Investments 898,836 1,950,068
Interest Received on Reverse Repurchase Agreements 1,301,521 2,223,421
Net cash generated from / (used in) Investing Activities (20,377,543) 1,024,603

Cash flow from / (Used in) Financing Activities

Payment of Lease liabilities (8,796,598) (8,343,099)
Net cash generated from / (used in) Financing Activities (8,796,598) (8,343,099)

Net Increase/(Decrease) in Cash and Cash Equivalents (2,495,143) 43,068,353

Cash & Cash Equivalents at the Beginning of the period 20,067,178 (11,010,623)
Cash & Cash Equivalents at the end of the period 17,572,035 32,057,730

Analysis of Cash & Cash Equivalents

Favourable balance
Cash at Bank 16,270,330 26,015,227
Cash in Hand 8,087,289 7,402,951
24,357,619 33,418,178
Unfavourable balance
Bank Overdrafts (6,785,584) (1,360,447)
(6,785,584) (1,360,447)

17,572,035 32,057,730
Figures in brackets indicate deductions.

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MULTI FINANCE PLC
INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER

SEGMENTAL ANALYSIS

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
Company's other components, whose operating results are reviewed regularly by the management to make decisions about resources allocated to each segment and assess its performance, and for which discrete financial
information is available.
For management purposes, the Company has identified operating segments based on products and services. Management monitors the operating results of its business units separately for the purpose of making decisions
about resource allocation and performance assessment. Segment performance is evaluated based on turnover.

No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Company’s total revenue in 2020 or 2021.
There were no transactions between reportable segments in 2020 or 2021.

Lease & Hire Purchase Loans Pawning Other Total

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Income
Interest Income 16,158,212 11,074,307 16,968,040 13,986,501 13,953,401 27,635,507 3,087,837 3,862,187 50,167,490 56,558,501
Other Income 3,138,352 4,234,134 1,188,273 2,740,200 2,340,820 981,605 2,070,522 1,371,292 8,737,968 9,327,231
Total Income 19,296,564 15,308,440 18,156,314 16,726,701 16,294,221 28,617,112 5,158,359 5,233,479 58,905,458 65,885,732
Unallocated Expenses (91,066,360) (91,454,430)
Profit / (Loss) Before Tax (32,160,902) (25,568,699)
Income Tax - -
Net Profit / (Loss) for the period (32,160,902) (25,568,699)

Segment Assets 99,323,778 189,629,203 213,560,633 287,548,599 169,203,941 176,460,646 213,656,022 186,699,011 695,744,374 840,337,459
Unallocated Assets 110,432,587 164,556,419
Total Assets 99,323,778 189,629,203 213,560,633 287,548,599 169,203,941 176,460,646 213,656,022 186,699,011 806,176,961 1,004,893,878

Unallocated Liabilities 344,536,182 453,311,961

Total Liabilities 344,536,182 453,311,961

Figures in brackets indicate deductions.

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MULTI FINANCE PLC
EXPLANATORY NOTES
INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2021

1 The above figures are provisional and subject to audit.

2 There are no changes in the accounting policies and methods of computations since the publication of Audited Financial Statements for the financial
year ended 31st March 2021 .
3 There has not been a significant change in the nature of the contingent liabilities which were disclosed in the Audited Financial Statements for the
year ended 31st March 2021.
4 All regulatory requirements including bad debt provisioning requirement as per Central Bank of Sri Lanka and Colombo Stock Exchange listing
rules have been complied with.
5 No circumstances have arisen since the Balance Sheet date, which would require adjustments to or disclosure in these financial statements.
6 These Interim Financial Statements have been prepared in compliance with the requirements of Sri Lanka Accounting Standards - LKAS 34 on
Interim Financial Reporting.
7 Stated Capital is represented by number of shares in issue as given below :

As at 30/09/2021 As at 30/09/2020

No.of Ordinary shares 63,610,181 63,610,181

8 Market price per share for the quarter ended 2021 2020
Rs. Rs.

Highest 13.50 13.50

Lowest 9.10 8.60
Last traded 10.30 12.80

9 The number of shares held by individual directors are as follows: As at 30/09/2021

Mr. H.F.Imal Fonseka Nil
Mrs. C.J.Atapattu 20,575
Mr. P.Jayasundera (Director/CEO) Nil
Mrs. Dulani Thanuja De Alwis Nil
Mr. Indraraj Ratnasabapathy Nil
Mr. Jayana Prasad Polwatte Nil

10 Twenty largest shareholders of the company are as follows: As at 30/09/2021

Number of
Name %
shares
1 HATTON NATIONAL BANK PLC/FAIRWAY HOLDINGS (PVT) LTD 41,110,075 64.63
2 ENTRUST HOLDINGS LIMITED 19,037,186 29.93
3 DR. S. M. D. NARENDRA PREMARATHNA BANDA 720,494 1.13
4 ENTRUST LIMITED 186,000 0.29
5 MISS. R. W. K. C. M. M. A. SAMADHIE FERDINANDO 132,948 0.21
6 MR. S. M. A. UPENDRA PREMARATHNA BANDA 86,877 0.14
7 PRIME LANDS (PVT) LTD 80,000 0.13
8 FAIRWAY HOLDINGS PVT LTD 74,065 0.12
9 MR. MADDUMA HALLINNAGE AJITH KUMARA 66,398 0.10
10 MR. RAVINDRA ERLE RAMBUKWELLE 54,900 0.09
11 MR. BUDDHI PRASAD THILAKARATHNE 53,374 0.08
12 MERCHANT BANK OF SRI LANKA & FINANCE PLC/K.A.J. DULANGIKA 53,326 0.08
13 MERCHANT BANK OF SRI LANKA & FINANCE PLC/Y.R.P. DE SILVA 51,387 0.08
14 MRS. SAROJANI GUNASINGHE 50,996 0.08
15 MR. JOSEPH CHARLES LEONARD WENITON 50,000 0.08
16 PEOPLE'S MERCHANT FINANCE PLC/ L.N.D. SILVA 50,000 0.08
17 MR. WIJITHA NANDA ABEYSURIYA 42,425 0.07
18 HATTON NATIONAL BANK PLC/ANUJA CHAMILA JAYASINGHE 41,000 0.06
19 MR. ALAGIYAWADU HARINDU HESHAWA DE SILVA 38,400 0.06
20 MR. PALLEWATTHA GAMARALALAGE WIJAYANANDA SIRISENA 38,000 0.06
62,017,851 97.50
Other shareholders 1,592,330 2.50
63,610,181 100.00

11 Public holding
The Company has opted to adopt option 02 under the section 7.13.1 of the amended Listing Rules which are effective from 17th January 2018.

As at 30/09/2021
Option Float adjusted market capitalization Public holding percentage (%) Number of public shareholders
Minimum Available Minimum Public holding Minimum
Public shareholders
requirement amount requirement (%) requirement

Option 2 less than Rs. 1 Bn. Rs. 0.23 Bn. 10% 35.22% 200 840

12 Commitments and Contingencies

There were no material contingent liabilities and /or capital commitments as at reporting date.

13 Comparative figures
Previous periods figures and phrases have been re-arranged wherever necessary to confirm to the current year presentation.

14 Credit Rating (Issuer Rating)

[SL] C+ from ICRA Lanka Ltd.