CAPITAL ALLIANCE PLC

INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED
30th SEPTEMBER 2022
CAPITAL ALLIANCE PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE QUARTER ENDED SIX MONTHS ENDED
30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21
Note Rs. Rs. Rs. Rs.
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Interest Income 2 821,374,491 95,374,072 1,262,579,061 221,472,289

Interest Expenses 3 (532,113,236) (59,698,844) (840,088,216) (133,778,758)
Net Interest Income 289,261,255 35,675,228 422,490,845 87,693,532
Gains and (Losses) arise from Financial Assets
Measured at FVTPL 4 7,989,215 (14,411,872) 412,249,918 (8,422,753)
Direct Expenses (2,425,814) (1,277,796) (3,649,810) (3,149,950)
Other Income 1,583 1,746,418 25,266 6,405,415
Net Operating Income 294,826,238 21,731,978 831,116,219 82,526,244
Operating Expenses
Personnel Expenses (30,317,672) (23,662,053) (51,594,060) (50,711,579)
Depreciation and Amortisation (1,673,536) (2,112,499) (3,305,190) (4,195,302)
Other Expenses 5 (75,652,828) (22,274,133) (293,229,902) (40,226,024)
Profit Before Tax 187,182,202 (26,316,706) 482,987,068 (12,606,661)
Income Tax Expenses 6 (33,611,753) 5,103,491 (103,962,162) 3,777,481
Profit for the period 153,570,449 (21,213,215) 379,024,907 (8,829,180)

Other Comprehensive Income

Other Comprehensive Income for the period - - - -

Total Comprehensive Income for the period 153,570,449 (21,213,215) 379,024,907 (8,829,180)

Basic/Diluted Earnings per Share (Rs.) 7 0.47 (0.07) 1.15 (0.03)

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CAPITAL ALLIANCE PLC
STATEMENT OF FINANCIAL POSITION
AS AT 30-Sep-22 31-Mar-22
Rs. Rs.
(Unaudited) (Audited)
ASSETS
Cash and Cash Equivalents 53,915,856 14,265,035
Financial Assets measured at Amortised Cost 452,036,472 40,167,893
Financial Assets measured at FVTPL 13,575,079,013 8,075,894,287
Amount due from Related Companies 4,714,298 886,146
Other Receivables 19,380,405 23,966,904
Deferred Tax Asset 5,710,824 43,977,351
Intangible Assets 1,348,115 932,103
Right-of-use Asset 9,167,973 11,205,302
Equipment 3,584,860 3,595,286
Total Assets 14,124,937,816 8,214,890,307

LIABILITIES AND EQUITY

Liabilities
Financial Liabilities at Amortised Cost 10,860,500,789 5,465,983,373
Amounts due to Related Companies 5,390,297 7,046,054
Other Payables 82,879,890 9,592,308
Lease Liability 9,914,349 11,772,683
Retirement Benefit Obligation 39,542,406 38,506,345
Income Tax Payable 79,929,942 14,234,307
Total Liabilities 11,078,157,673 5,547,135,070

EQUITY
Stated Capital 723,348,421 723,348,421
Special Risk Reserve 682,701,508 644,799,017
Retained Earnings 1,640,730,215 1,299,607,799
Total Equity 3,046,780,143 2,667,755,237
Total Liabilities and Equity 14,124,937,816 8,214,890,307

NAPS (Rs.) 9.25 8.10

These financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
Sgd.
…................................
Mr. Yasantha Kumara
Financial Controller

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

Sgd. Sgd.
…................................ …................................
Mr. W A T Fernando Mr. C S R S Anthony
Director Director

26th October 2022

Colombo

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CAPITAL ALLIANCE PLC
STATEMENT OF CHANGES IN EQUITY
TH
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
Stated Capital Special Risk Retained Total
Reserve Earnings

Rs. Rs. Rs. Rs.

Balance as at 01st April 2021 311,576,061 644,799,017 1,767,072,220 2,723,447,298

Profit for the Period - - (8,829,180) (8,829,180)

Other Comprehensive Income for the Period - - - -

Total Comprehensive Income - - (8,829,180) (8,829,180)

Dividend Paid - - (300,250,676) (300,250,676)

Transferred To the Special Risk Reserve - - - -

Balance as at 30th September 2021 311,576,061 644,799,017 1,457,992,363 2,414,367,441

Balance as at 01st April 2022 723,348,421 644,799,017 1,299,607,799 2,667,755,237

Profit for the Period - - 379,024,907 379,024,907

Other Comprehensive Income for the Period - - - -

Total Comprehensive Income - - 379,024,907 379,024,907

Transferred To the Special Risk Reserve - 37,902,491 (37,902,491) -

Balance as at 30th September 2022 723,348,421 682,701,508 1,640,730,215 3,046,780,143

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CAPITAL ALLIANCE PLC
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30-Sep-22 30-Sep-21
Rs. Rs.
(Unaudited) (Unaudited)
Cash flows from Operating Activities

Interest Receipts 996,060,016 327,429,048

Interest Payments (775,312,004) (149,400,227)
Payment of Direct Expenses (3,649,810) (3,149,950)
Other Receipts 25,266 6,405,415
Cash payments to Employees and Other payments (342,862,898) (87,831,960)
Operating profit/ (Loss) before changes in Operating Assets and Liabilities (125,739,430) 93,452,325

(Increase)/Decrease in Financial Assets measured at Amortised Cost (410,792,248) (2,991,910,571)

(Increase)/Decrease in Financial Assets measured at FVTPL (4,821,492,095) 10,294,171,615
(Increase)/Decrease in Other Receivables 4,586,498 (41,732,838)
(Increase)/Decrease in Amount due from Related Companies (3,828,151) (6,805,926)
Increase/(Decrease) in Financial Liabilities at Amortised Cost 5,330,217,098 (6,854,176,060)
Increase/(Decrease) in Amount due to Related Companies (1,655,757) (83,054,393)
Increase/(Decrease) in Other Payable 73,287,582 (71,270,445)
Net cash from Operating Activities 44,583,498 338,673,706

Gratuity Paid (925,000) -

Income Taxes Paid - (32,550,700)
Net cash from Operating Activities 43,658,498 306,123,006

Cash flows from Investing Activities

Purchase of Equipment (975,968) (2,112,971)
Purchase of Intangible Assets (697,480) (205,500)
Net cash from / (used in) Investing Activities (1,673,448) (2,318,470)

Cash flows from Financing Activities

Dividend Paid - (300,250,676)
Lease Payments (2,334,229) (2,122,027)
Net cash from / (used in) Financing Activities (2,334,229) (302,372,703)

Net increase in cash and cash equivalents 39,650,821 1,431,832

Cash and cash equivalents at the beginning of the period 14,265,035 10,472,382
Cash and cash equivalents at the end of the period 53,915,856 11,904,214

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CAPITAL ALLIANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
TH
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

1 BASIS OF PREPARATION
These interim financial statements have been prepared in accordance with LKAS 34 “Interim Financial Reporting”. They do not include all the
information required for a complete set of SLFRS/LKAS financial statements. However, selected explanatory notes are included to explain the events and
transactions that are significant to an understanding of the changes in the Company’s financial position and performance since the last annual financial
statements as at and for the year ended 31st March 2022.
The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the
st
same as those applied to the audited financial statements for the year ended 31 March 2022.
QUARTER ENDED SIX MONTHS ENDED
30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21
Rs. Rs. Rs. Rs.
2 INTEREST INCOME
Financial Assets measured at FVTPL
Interest on Treasury Bills 683,610,869 62,420,811 1,092,216,242 111,107,964
Interest on Treasury Bonds 125,706,009 11,252,685 154,089,567 78,288,881
809,316,879 73,673,496 1,246,305,810 189,396,846
Financial Assets measured at Amortised cost
Interest on Securities Purchased Under Resale Agreements 12,037,229 21,676,804 16,231,621 32,027,079
Interest on Staff Loans 20,383 23,772 41,630 48,365
12,057,612 21,700,576 16,273,251 32,075,444
821,374,491 95,374,072 1,262,579,061 221,472,289
3 INTEREST EXPENSES
Interest on Securities Sold under Repurchase Agreements 532,113,236 59,698,844 840,088,216 133,778,758
532,113,236 59,698,844 840,088,216 133,778,758
4 GAINS AND LOSSES ARISE FROM FINANCIAL ASSETS
4.1 NET GAIN /(LOSS) FROM TRADING
Net Gain/(Loss) on Government Securities (86,310,812) (47,967,316) 32,996,778 (48,297,621)
Net Gain/ (Loss) on Quoted Shares - 16,843,309 (6,543,752) 23,516,998
(86,310,812) (31,124,007) 26,453,026 (24,780,623)
4.2 NET GAIN/(LOSS) FROM REMEASUREMENT OF FINANCIAL ASSETS AT FVTPL
Remeasurement Gain/(Loss) on Government Securities 94,300,026 (2,169,715) 380,557,437 1,365,153
Remeasurement Gain/(Loss) on Quoted Shares - 18,881,851 5,239,455 14,992,717
94,300,026 16,712,136 385,796,891 16,357,870

7,989,215 (14,411,872) 412,249,918 (8,422,753)

5 OTHER EXPENSES
This includes VAT on Financial Services settlement from Year of Assessment 2012/13 to 2020/21 amounting to Rs.182.8 Mn.
QUARTER ENDED SIX MONTHS ENDED
6 INCOME TAX EXPENSE/(REVERSAL) 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21

Income tax recognised in Profit or Loss Rs. Rs. Rs. Rs.

Current Tax Expense/ (Reversal) for the period 33,812,703 (5,103,491) 65,695,634 (2,977,444)
Deferred Tax Charge/ (Reversal) for the period (200,950) - 38,266,528 (800,037)
33,611,753 (5,103,491) 103,962,162 (3,777,481)
7 BASIC/DILUTED EARNINGS PER SHARE
Earnings Per Share is calculated by dividing the Profit attributable to equity holders of the Company by the weighted average number of ordinary shares
outstanding during the period and calculated as follows.
QUARTER ENDED SIX MONTHS ENDED
30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21
Profit attributable to ordinary shareholders - (Rs.) 153,570,449 (21,213,215) 379,024,907 (8,829,180)
Weighted average number of ordinary shares 329,417,884 288,240,648 329,417,884 288,240,648
Earnings per share - (Rs.) 0.47 (0.07) 1.15 (0.03)

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CAPITAL ALLIANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30TH SEPTEMBER 2022
8. Financial instruments- Fair Value Measurement

The Company measures fair values using the following fair value hierarchy that reflects the significance of the
inputs used in making the measurements in accordance with SLFRS 13.

Level - 1
Financial instruments that are measured in whole or in part by reference to published quotes in an active market. A
financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available
from an exchange and those prices represent actual and regularly occurring market transactions on an arm’s length
basis.
Level - 2
Financial instruments that are measured at fair value on a recurring basis. As market quotes generally are not
readily available or accessible for these securities, their fair value measures are determined using relevant
information generated by market transactions involving comparable securities.
Level - 3
Valuation techniques using significant unobservable inputs. This category includes all instruments where the
valuation technique includes inputs not based on observable data and the unobservable inputs have a significant
effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for
similar instruments where significant unobservable adjustments or assumptions are required to reflect differences
between the instruments.

Fair values versus the Carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the Statement of
Financial Position, are as follows:
30-Sep-22 31-Mar-22
Financial assets measured at fair value
Financial Assets measured at FVTPL 13,575,079,013 8,075,894,287
13,575,079,013 8,075,894,287
Financial assets not measured at fair value
Cash and Cash Equivalents 53,915,856 14,265,035
Financial Assets at Amortised Cost 452,036,472 40,167,893
Amounts due from Related Companies 4,714,298 886,146
510,666,626 55,319,074
Total financial assets 14,085,745,639 8,131,213,361
Financial liabilities not measured at fair value
Financial Liabilities at Amortised Cost 10,860,500,789 5,465,983,373
Amounts due to Related Companies 5,390,297 7,046,054
Other Payables 82,879,890 9,592,308
Total financial liabilities 10,948,770,976 5,482,621,735

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CAPITAL ALLIANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30TH SEPTEMBER 2022

8. Financial instruments- Fair Value Measurement (Contd.)

The following tables show an analysis of financial instruments at fair value and by level of Fair Value Hierarchy:

Total Carrying Level 1 Level 2 Carried at Cost Total

As at 30th September 2022 Value

Financial Assets recognised through Profit or Loss

Investment in Government Securities 13,575,079,013 - 13,575,079,013 - 13,575,079,013

13,575,079,013 - 13,575,079,013 - 13,575,079,013

Financial assets not measured at Fair Value (Amortized Cost)

Cash and Cash Equivalents 53,915,856 - - 53,915,856 53,915,856

Financial Assets at Amortised Cost 452,036,472 - - 452,036,472 452,036,472
Receivable from Related Companies 4,714,298 - - 4,714,298 4,714,298
510,666,626 - - 510,666,626 510,666,626

Total Financial Assets 14,085,745,639 - 13,575,079,013 510,666,626 14,085,745,639

Financial liabilities not measured at Fair Value (Amortized Cost)

Financial Liabilities at Amortised Cost 10,860,500,789 - - 10,860,500,789 10,860,500,789
Amounts due to Related Companies 5,390,297 - - 5,390,297 5,390,297
Other Payables 82,879,890 - - 82,879,890 82,879,890
10,948,770,976 - - 10,948,770,976 10,948,770,976

Total Financial Liabilities 10,948,770,976 - - 10,948,770,976 10,948,770,976

Total Carrying Level 1 Level 2 Carried at Cost Total

As at 31st March 2022 Value

Financial Assets recognised through Profit or Loss

Investment in Government Securities 8,066,490,918 - 8,066,490,918 - 8,066,490,918

Investment in Quoted Shares 9,403,369 9,403,369 - - 9,403,369
Financial Assets measured at FVOCI - - - - -
8,075,894,287 9,403,369 8,066,490,918 - 8,075,894,287

Financial assets not measured at Fair Value (Amortized Cost)

Cash and Cash Equivalents 14,265,035 - - 14,265,035 14,265,035

Amount due from Related Companies 886,146 - - 886,146 886,146
15,151,181 - - 15,151,181 15,151,181

Total Financial Assets 8,091,045,468 9,403,369 8,066,490,918 15,151,181 8,091,045,468

Financial liabilities not measured at Fair Value (Amortized Cost)

Financial Liabilities at Amortised Cost 5,465,983,373 - - 5,465,983,373 5,465,983,373
Amounts due to Related Companies 7,046,054 - - 7,046,054 7,046,054
Other Payables 9,592,308 - - 9,592,308 9,592,308
Lease Liability 11,772,683 - 11,772,683 11,772,683
Total Financial Liabilities 5,494,394,418 - - 5,494,394,418 5,494,394,418

Level 1
The Company use quoted market prices of Colombo Stock Exchange (CSE) for measuring of fairvalue of Shares.

Level 2
The Company use the daily average government security rates issued by Public Debt Department of Central Bank of Sri Lanka for measuring Fair Value of
Government Securities.

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CAPITAL ALLIANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30TH SEPTEMBER 2022

9. COMMITMENTS AND CONTINGENCIES

There were no other material litigations or claims that could have a material impact on financial position
of the Company or which would lead to a disclosure in the financial statements for the quarter ended 30th
September 2022, except for the following,

The Company has also appealed against assessment on NBT on Financial Services amounting to
Rs.1.7Mn, Rs.11.9Mn, Rs.0.1Mn and Rs.9.3Mn respectively for 13/14, 14/15, 15/16 and 16/17 Year of
Assessment.

The related Appeals against the said Assessments and Determinations have been duly submitted. Further,
The Company may pursue a settlement of NBT on Financial Services on an amicable basis.

10. EVENTS AFTER THE REPORTING PERIOD

There have been no other material events occurring after the date of the Statement of Financial Position
that require adjustments to or disclosure in the Financial Statement.

11. NET ASSETS PER SHARE

30-Sep-22 31-Mar-22

Net Assets Per Share (Rs.) 9.25 8.10

12. DISCLOSURES UNDER LISTING RULES

12.1 All known expenditure items have been provided for and there is no management fees or similar
expenditure provided for in the interim accounts.

12.2 Stated capital

The number of shares represented by stated capital as at 30th September 2022 is 329,417,884 shares (31st
March 2022 - 329,417,884 shares).

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CAPITAL ALLIANCE PLC
INVESTOR INFORMATION

12.3 Market Price per Share

Information on shares of the Company for the quarter ended 30-Sep-22 31-Mar-22

Market Price Per Share (Rs.) 18.50 9.50

Highest Price per share during the quarter ended (Rs.) 20.50 19.20
Lowest Price per share during the quarter ended (Rs.) 13.20 9.00

12.4 List of Twenty Major Shareholders as at 30th September 2022

Name of Shareholder/Company Shareholding Percentage

1 Capital Alliance Holdings Ltd 261,598,476 79.41%
2 Mr. W.A.T. Fernando 21,698,676 6.59%
3 Mrs. H.M.S. Perera 4,724,340 1.43%
4 J.B. Cocoshell (Pvt) Ltd 3,663,333 1.11%
5 Mr. K.L.D.N.N.M. Liyanage 1,355,650 0.41%
6 Ashthi Holdings (Pvt) Ltd 1,000,012 0.30%
7 Mr. V.K. Hirdaramani 1,000,000 0.30%
7 Phoenix Ventures Private Limited 1,000,000 0.30%
9 SDS Spices (Pvt) Ltd 999,600 0.30%
10 Miss B.C. Palihawadana 942,962 0.29%
11 Peoples Merchant Finance Plc/D.D.N. Kumarasiri 800,000 0.24%
12 Mr. A. De Zoysa 692,836 0.21%
13 Mrs. D.S.H. Fernando 660,191 0.20%
14 Seylan Bank Plc/Arrc Capital (Pvt) Ltd 650,446 0.20%
15 Mr. C.T. Rodrigo 634,176 0.19%
16 Alpex Marine (Pvt) Ltd 628,894 0.19%
17 Mr. U.H. Dharmadasa 567,549 0.17%
18 Mr. S. Senthilnathan 502,197 0.15%
19 Mr. A.D. Rayen 500,000 0.15%
20 Mr. L.H.S.L. Silva 500,000 0.15%

12.5 Shareholding of the Directors/ Managing Director

Name Designation Shareholding
Mr. W A T Fernando Director/CEO 21,698,676
Mr. R J Arasaratnam Director 3,312
Mr. D A De Zoysa Director Nil
Mr. C S R S Anthony Director 2,600
Ms. A I C Nandasena Director Nil
Ms. K A D Siriwardene Director Nil

12.6 Compliance relating to the Public Floating

Disclosure in accordance with the Section 7.4 (b) (ii) - Appendix 7B (a) (Item 4) of CSE Listing Rules

Float adjusted market capitalisation as at 30th September 2022 (Rs) 737,523,818

Public holding percentage 12.10%
Number of public shareholders 2,725

Complied with the Minimum Public Holding requirement under Option 2 of CSE Listing Rule 7.13.1 (b)

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