Central Finance Company PLC

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED
30TH SEPTEMBER 2022
CENTRAL FINANCE COMPANY PLC
INCOME STATEMENT
Group Company
For the six months ended 30th September 2022 2021 2022 2021
Unaudited Unaudited Increase Unaudited Unaudited Increase
(decrease) (decrease)
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %
Income 11,516,349 11,556,966 (0.35) 9,058,792 8,237,942 9.96
Interest income 8,286,048 6,640,852 24.77 8,078,247 6,613,848 22.14
Interest expenses (2,126,241) (1,962,026) 8.37 (2,144,929) (1,980,948) 8.28
Net interest income 6,159,807 4,678,826 31.65 5,933,318 4,632,900 28.07

Net income from financial instruments at FVTPL 19,660 484,374 (95.94) 1,811 418,688 (99.57)
Net other revenue 1,092,428 708,334 54.22 - - -
Operating lease income 515,129 519,518 (0.84) 516,974 521,670 (0.90)
Other income 377,452 612,360 (38.36) 461,760 683,736 (32.47)
Total operating income 8,164,476 7,003,412 16.58 6,913,863 6,256,994 10.50

Impairment and other credit losses (438,735) (1,565,976) (71.98) (306,821) (1,565,735) (80.40)
Net Operating Income 7,725,741 5,437,436 42.08 6,607,042 4,691,259 40.84

Operating expenses
Personnel expenses (1,338,298) (1,247,932) 7.24 (1,161,088) (1,077,439) 7.76
Premises, equipment, establishment and other expenses (1,554,093) (1,078,279) 44.13 (1,105,080) (972,262) 13.66
(2,892,391) (2,326,211) 24.34 (2,266,168) (2,049,701) 10.56

Operating profits before share of profit of equity accounted investees 4,833,350 3,111,225 55.35 4,340,874 2,641,558 64.33
Share of profit of equity accounted investees, net of tax 883,049 679,620 29.93 - - -

Operating profit before taxes on financial services 5,716,399 3,790,845 50.79 4,340,874 2,641,558 64.33
Taxes on financial services (754,118) (415,708) 81.41 (754,118) (415,708) 81.41
Profit before tax 4,962,281 3,375,137 47.02 3,586,756 2,225,850 61.14
Income tax expense (1,123,217) (793,105) 41.62 (1,051,108) (682,456) 54.02
Profit for the period 3,839,064 2,582,032 48.68 2,535,648 1,543,394 64.29

Profit attributable to :
Equity holders of the parent 3,679,399 2,417,352 52.21 2,535,648 1,543,394 64.29
Non-controlling interest 159,665 164,680 (3.05) - - -
Profit for the period 3,839,064 2,582,032 48.68 2,535,648 1,543,394 64.29

Basic and diluted earnings per share -Rs. 16.18 10.63 52.21

The annexed notes form an integral part of these interim financial statements.

CENTRAL FINANCE COMPANY PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Group Company
For the six months ended 30th September 2022 2021 2022 2021

Increase Increase
(decrease) (decrease)
Unaudited Unaudited Unaudited Unaudited
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %

Profit for the period 3,839,064 2,582,032 48.68 2,535,648 1,543,394 64.29

Other comprehensive income/(expense) to be reclassified to income statement

Fair value gain/(loss) on debt securities at fair value through other comprehensive income
Share of equity accounted investees, net of tax 326,127 (117,565) 377.40 - - -

Total other comprehensive income/(expense) to be reclassified to income statement 326,127 (117,565) 377.40 - - -

Other comprehensive income/(expense) not to be reclassified to income statement

Actuarial gains / (losses) on defined benefit plans
Share of equity accounted investees, net of tax - 11,290 - - - -
Total other comprehensive income/(expense) not to be reclassified to income statement - 11,290 - - - -

Other comprehensive income/(expense) for the period (net of tax) 326,127 (106,275) 406.87 - - -

Total comprehensive income for the period 4,165,191 2,475,757 68.24 2,535,648 1,543,394 64.29

Total comprehensive income Attributable to:

Equity holders of the parent 4,005,526 2,311,077 73.32 2,535,648 1,543,394 64.29
Non-controlling interest 159,665 164,680 (3.05) - -
Total comprehensive income for the period 4,165,191 2,475,757 68.24 2,535,648 1,543,394 64.29

The annexed notes form an integral part of these interim financial statements.
CENTRAL FINANCE COMPANY PLC
INCOME STATEMENT
Group Company
For the three months ended 30th September 2022 2021 2022 2021
Unaudited Unaudited Increase Unaudited Unaudited Increase
(decrease) (decrease)
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %
Income 6,041,654 6,220,326 (2.87) 4,801,435 4,282,933 12.11
Interest income 4,347,643 3,321,005 30.91 4,221,663 3,299,636 27.94
Interest expenses (1,233,850) (916,148) 34.68 (1,242,713) (925,657) 34.25
Net interest income 3,113,793 2,404,857 29.48 2,978,950 2,373,979 25.48

Net income from financial instruments at FVTPL 108,316 227,481 (52.38) 54,172 201,464 (73.11)
Net other revenue 539,985 422,454 27.82 - - -
Operating lease income 252,101 263,072 (4.17) 253,024 264,302 (4.27)
Other income 146,663 451,230 (67.50) 272,576 517,531 (47.33)
Total operating income 4,160,858 3,769,094 10.39 3,558,722 3,357,276 6.00

Impairment and other credit losses 104,977 (202,896) (151.74) 229,579 (202,581) (213.33)
Net Operating Income 4,265,835 3,566,198 19.62 3,788,301 3,154,695 20.08

Operating expenses
Personnel expenses (687,350) (624,477) 10.07 (595,346) (535,159) 11.25
Premises, equipment, establishment and other expenses (598,936) (554,347) 8.04 (565,800) (500,874) 12.96
(1,286,286) (1,178,824) 9.12 (1,161,146) (1,036,033) 12.08

Operating profits before share of profit of equity accounted investees 2,979,549 2,387,374 24.80 2,627,155 2,118,662 24.00
Share of profit of equity accounted investee, net of tax 589,303 356,979 65.08 - - -

Operating profit before taxes on financial services 3,568,852 2,744,353 30.04 2,627,155 2,118,662 24.00
Taxes on financial services (445,814) (303,783) 46.75 (445,814) (303,783) 46.75
Profit before tax 3,123,038 2,440,570 27.96 2,181,341 1,814,879 20.19
Income tax expense (621,341) (586,228) 5.99 (611,048) (512,935) 19.13
Profit for the period 2,501,697 1,854,342 34.91 1,570,293 1,301,944 20.61

Profit attributable to :
Equity holders of the parent 2,361,816 1,744,053 35.42 1,570,293 1,301,944 20.61
Non-controlling interest 139,881 110,289 26.83 - - -
Profit for the period 2,501,697 1,854,342 34.91 1,570,293 1,301,944 20.61

Basic and diluted earnings per share -Rs. 10.39 7.67 35.42

The annexed notes form an integral part of these interim financial statements.

CENTRAL FINANCE COMPANY PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Group Company
For the three months ended 30th September 2022 2021 2022 2021

Increase Increase
(decrease) (decrease)
Unaudited Unaudited Unaudited Unaudited
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %

Profit for the period 2,501,697 1,854,342 34.91 1,570,293 1,301,944 20.61

Other comprehensive income/(expense) to be reclassified to income statement

Fair value gain/(loss) on debt securities at fair value through other comprehensive income
Share of equity accounted investees, net of tax 10,071 (86,993) 111.58 - - -

Total other comprehensive income/(expense) to be reclassified to income statement 10,071 (86,993) 111.58 - - -

Other comprehensive income/(expense) not to be reclassified to income statement

Actuarial gains / (losses) on defined benefit plans
Share of equity accounted investees, net of tax - 11,290 - - - -
Total other comprehensive income/(expense) not to be reclassified to income statement - 11,290

Other comprehensive income/(expense) for the period (net of tax) 10,071 (75,703) 113.30 - - -

Total comprehensive income for the period 2,511,768 1,778,639 41.22 1,570,293 1,301,944 20.61

Total comprehensive income Attributable to:

Equity holders of the parent 2,371,887 1,668,350 42.17 1,570,293 1,301,944 20.61
Non-controlling interest 139,881 110,289 26.83 - -
Total comprehensive income for the period 2,511,768 1,778,639 41.22 1,570,293 1,301,944 20.61

The annexed notes form an integral part of these interim financial statements.
CENTRAL FINANCE COMPANY PLC
STATEMENT OF FINANCIAL POSITION

Group Company
As at 30.09.2022 31.03.2022 30.09.2022 31.03.2022
Unaudited Audited Unaudited Audited
Rs.'000 Rs.'000 Rs.'000 Rs.'000

ASSETS
Cash and cash equivalents 1,036,997 1,199,681 675,270 697,234
Fair value through profit or loss financial assets 668,106 1,655,884 343,001 968,093
Securities bought under repurchase agreements 2,331,148 5,201,821 2,331,148 5,201,821
Financial assets at amortised cost- Debt and other financial instruments 23,800,522 22,310,336 22,152,634 20,933,341
Financial assets at amortised cost- Loans and receivables from customers 4,917,636 4,724,669 4,918,824 4,727,838
Financial assets at amortised cost- Net investment in leases and hire purchase 46,359,898 53,901,589 46,359,898 53,901,589
Trade receivables 856,644 1,589,992 - -
Investments in subsidiaries - - 381,614 333,614
Investments in equity accounted investees 10,026,607 9,221,337 1,538,020 1,538,020
Inventories and other stocks 2,006,219 1,626,322 79,835 54,436
Investment properties 78,800 78,800 78,800 78,800
Property, plant and equipment 12,265,192 12,433,609 9,892,369 10,082,958
Right of use assets 427,638 457,818 512,386 559,516
Intangible assets 79,376 85,792 78,534 84,809
Current tax assets 27 1,127 - -
Deferred tax asset 15,196 15,196 - -
Other assets 1,060,770 1,096,721 1,005,352 873,135
Real estates held for sale 5,155 5,155 5,155 5,155
Assets held for sale 132 100 - -
Total assets 105,936,063 115,605,949 90,352,840 100,040,359

LIABILITIES
Bank overdrafts 164,201 224,369 126,255 215,438
Financial liabilities at amortised cost -Deposits 40,434,075 48,715,464 40,712,404 49,024,182
Financial liabilities at amortised cost -Interest bearing borrowings 549,789 708,465 64,760 88,329
Lease liabilities 408,648 425,001 510,641 542,760
Employee benefit obligations 1,839,813 1,778,128 1,690,557 1,632,666
Current tax liabilities 957,938 1,773,149 867,024 1,597,150
Deferred tax liability 1,537,059 1,765,957 1,235,979 1,438,012
Other liabilities 1,458,187 2,744,039 773,537 1,035,641
Liabilities directly associated with the assets held for sale 1,142 1,224 - -
Total liabilities 47,350,852 58,135,796 45,981,157 55,574,178

EQUITY
Stated capital 2,230,286 2,230,286 2,230,286 2,230,286
Statutory Reserve fund 2,715,000 2,715,000 2,715,000 2,715,000
Revaluation reserve 4,972,196 4,976,248 3,581,773 3,584,888
Fair value reserve (72,365) (398,492) - -
Loan loss reserve 920,000 920,000 920,000 920,000
General reserve 23,402,957 23,402,957 23,391,776 23,391,776
Retained earnings 22,631,264 21,989,452 11,532,848 11,624,231
Total equity, excluding non-controlling interest 56,799,338 55,835,451 44,371,683 44,466,181
Non-controlling interest 1,785,873 1,634,702 - -
Total equity 58,585,211 57,470,153 44,371,683 44,466,181
Total liabilities and equity 105,936,063 115,605,949 90,352,840 100,040,359
Net asset value per share - Rs. 249.83 245.59 195.17 195.58

These financial statements have been prepared in compliance with the requirements of the Companies Act No.07 of 2007.

W.M.T.W.Weerasinghe
Chief Financial Officer

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.

E. H. Wijenaike A.K. Gunaratne

Managing Director Deputy Managing Director / Deputy
Chief Executive Officer

14'th November 2022

Colombo

The annexed notes form an integral part of these interim financial statements.
CENTRAL FINANCE COMPANY PLC
STATEMENT OF CHANGES IN EQUITY
For the six months ended 30th September 2022
Attributable to equity holders of the company Non- Total
controlling
Group Stated Statutory Revaluation Fair value Loan loss General Retained Total interest
capital reserve fund reserve reserve reserve reserves earnings
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Balance as at 1st April 2021 1,961,597 2,371,000 5,102,431 27,538 920,000 23,402,957 16,266,493 50,052,016 1,453,433 51,505,449

Total comprehensive income

Profit for the six months ended 30th September 2021 - - - - - - 2,417,352 2,417,352 164,680 2,582,032
Other comprehensive income - - - (117,565) - - 11,290 (106,275) - (106,275)
Total comprehensive income - - - (117,565) - - 2,428,642 2,311,077 164,680 2,475,757

Transactions with equity holders of the Company and other transfers , recognised directly in equity
Depreciation on revaluation surplus - - (4,051) - - - 4,051 - - -
Unclaimed dividends written back - - - - - - 18,848 18,848 262 19,110
Dividends - scrip/cash 268,689 - - - - - (784,087) (515,398) (27,234) (542,632)
Divestment of a subsidiary company - - - - - - - - (68,062) (68,062)
Total contributions from and distribution to equity holders and other transfers 268,689 - (4,051) - - - (761,188) (496,550) (95,034) (591,584)
Balance as at 30th September 2021 2,230,286 2,371,000 5,098,380 (90,027) 920,000 23,402,957 17,933,947 51,866,543 1,523,079 53,389,622

Balance as at 1st April 2022 2,230,286 2,715,000 4,976,248 (398,492) 920,000 23,402,957 21,989,452 55,835,451 1,634,702 57,470,153
Charge relating to Surcharge Tax - - - - - - (2,587,313) (2,587,313) (2,031) (2,589,344)
Balance as at 1st April 2022 (Adjusted) 2,230,286 2,715,000 4,976,248 (398,492) 920,000 23,402,957 19,402,139 53,248,138 1,632,671 54,880,809

Total comprehensive income

Profit for the six months ended 30th September 2022 - - - - - - 3,679,399 3,679,399 159,665 3,839,064
Other comprehensive income - - - 326,127 - - - 326,127 - 326,127
Total comprehensive income - - - 326,127 - - 3,679,399 4,005,526 159,665 4,165,191

Transactions with equity holders of the Company and other transfers , recognised directly in equity
Depreciation on revaluation surplus - - (4,052) - - - 4,052 - - -
Unclaimed dividends written back - - - - - - 384 384 385 769
Payment of forfeited dividends - - - - - - (1) (1) - (1)
Dividends - Cash - - - - - - (454,709) (454,709) (6,848) (461,557)
Total contributions from and distribution to equity holders and other transfers - - (4,052) - - - (450,274) (454,326) (6,463) (460,789)
Balance as at 30th September 2022 2,230,286 2,715,000 4,972,196 (72,365) 920,000 23,402,957 22,631,264 56,799,338 1,785,873 58,585,211
CENTRAL FINANCE COMPANY PLC
STATEMENT OF CHANGES IN EQUITY
For the six months ended 30th September 2022
Attributable to equity holders of the company
Company Stated capital Statutory Revaluation Loan loss General Retained Total
reserve fund reserve reserve reserve earnings
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Balance as at 01st April 2021 1,961,597 2,371,000 3,747,729 920,000 23,391,776 7,558,554 39,950,656

Total comprehensive income

Profit for the six months ended 30th September 2021 - - - - - 1,543,394 1,543,394
Total comprehensive income - - - - - 1,543,394 1,543,394

Transactions with equity holders of the Company and other transfers , recognised directly in equity
Depreciation on revaluation surplus - - (3,115) - - 3,115 -
Unclaimed dividends written back - - - - - 18,587 18,587
Dividends - Scrip/cash 268,689 - - - - (784,087) (515,398)
Total contributions from and distribution to equity holders and other transfers 268,689 - (3,115) - - (762,385) (496,811)
Balance as at 30th September 2021 2,230,286 2,371,000 3,744,614 920,000 23,391,776 8,339,563 40,997,239

Balance as at 01st April 2022 2,230,286 2,715,000 3,584,888 920,000 23,391,776 11,624,231 44,466,181
Charge relating to Surcharge Tax - - - - - (2,175,436) (2,175,436)
Balance as at 1st April 2022 (Adjusted) 2,230,286 2,715,000 3,584,888 920,000 23,391,776 9,448,795 42,290,745

Total comprehensive income

Profit for the six months ended 30th September 2022 - - - - - 2,535,648 2,535,648
Total comprehensive income - - - - - 2,535,648 2,535,648

Transactions with equity holders of the Company and other transfers , recognised directly in equity
Depreciation on revaluation surplus - - (3,115) - - 3,115 -
Dividends - Cash - - - - - (454,709) (454,709)
Payment of forfeited dividends - - - - - (1) (1)
Total contributions from and distribution to equity holders and other transfers - - (3,115) - - (451,595) (454,710)
Balance as at 30th September 2022 2,230,286 2,715,000 3,581,773 920,000 23,391,776 11,532,848 44,371,683

The annexed notes form an integral part of these interim financial statements.
Figures in brackets indicate deductions.
CENTRAL FINANCE COMPANY PLC
STATEMENT OF CASH FLOW

Group Company
For the six months ended 30th September 2022 2021 2022 2021
Unaudited Unaudited Unaudited Unaudited
Rs.'000 Rs.'000 Rs.'000 Rs.'000

Cash flows from operating activities

Interest receipts 7,357,262 5,515,954 7,231,349 5,493,501
Interest payments (1,145,421) (1,122,916) (1,153,286) (1,132,864)
Recoveries on bad debts previously written off 220,521 261,764 220,521 261,764
Receipts from other operating activities 3,721,068 3,388,217 578,515 598,854
Cash payments to employees and suppliers (5,322,444) (4,421,436) (2,178,883) (1,807,578)
Operating profit before changes in operating assets 4,830,986 3,621,583 4,698,216 3,413,677

(Increase) / decrease in operating assets:

Securities with bank and non-bank financial institutions 2,546,496 (554,772) 2,546,496 (554,772)
Loans to customers (6,067,092) (9,921,089) (6,305,533) (9,929,869)
Customer repayments 13,237,813 15,411,629 13,481,070 15,404,802
Others (294,347) (440,782) (210,862) (406,131)
Increase / (decrease) in operating liabilities:
Net cash effect on deposits (8,572,343) (3,813,291) (8,607,494) (3,924,012)
Net cash from operating activities before taxes on financial services 5,681,513 4,303,278 5,601,893 4,003,695

Taxes on financial services (710,069) (495,203) (710,069) (495,203)

Net cash on operating activities before income tax 4,971,444 3,808,075 4,891,824 3,508,492

Income tax paid (2,166,418) (1,235,090) (1,983,268) (1,103,438)

Surcharge tax paid (2,185,438) - (2,175,436) -
Net cash generated from operating activities 619,588 2,572,985 733,120 2,405,054

Cash flows from investing activities

Dividends received from subsidiaries - - 26,724 43,642
Dividends received from equity accounted investees 8,789 31,247 6,855 -
Dividends received from other companies 15,188 25,121 12,604 19,646
Proceeds from divestment of a subsidiary company - 270,776 - 186,353
Proceeds on liquidation of an associate company - 46,509 - 30,828
Acquisition of financial investments (4,184,047) (823,522) - -
Proceeds from sale of financial investment 4,344,953 583,605 - -
Purchase of property, plant and equipment (238,275) (253,401) (184,045) (235,443)
Disposal of property, plant and equipment 55,042 36,817 54,928 36,392
Net cash used in investing activities 1,650 (82,848) (82,934) 81,418

Cash flows from financing activities

Proceeds from borrowings 258,840 1,521,665 - -
Repayment of borrowings (422,173) (2,272,880) (28,226) (975,000)
Lease installment settlement (99,972) (84,831) (99,972) (84,831)
Dividends paid to equity holders of the parent (454,709) (515,399) (454,709) (515,399)
Dividends paid to non-controlling interest (5,661) (26,249) - -
Net cash used in financing activities (723,675) (1,377,694) (582,907) (1,575,230)

Net increase/(decrease) in cash and cash equivalents (102,437) 1,112,443 67,279 911,242
Cash and cash equivalents at the beginning of the period 975,489 (466,976) 481,971 (514,069)
Cash and cash equivalents at the end of the period 873,052 645,467 549,250 397,173

Cash and cash equivalents 1,036,997 876,873 675,270 613,751

Bank overdrafts (164,201) (231,636) (126,255) (216,781)
Impairment provision for cash equivalents 256 230 235 203
Cash and cash equivalents at the end of the period 873,052 645,467 549,250 397,173

Figures in brackets indicate outflows.

The annexed notes form an integral part of these interim financial statements.
CENTRAL FINANCE COMPANY PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS

1 The interim financial statements of the Company and the Group have been prepared in accordance with the accounting policies set out in the
Annual Report for the year ended 31st March 2022 and provide the information as required by the Colombo Stock Exchange and LKAS 34-
Interim Financial Reporting.

2 The presentation and classification of the previous periods have been amended where relevant for better presentation and to be comparable
with those of the current period.

3 Stated capital is represented by number of shares in issue as given below:

As at 30.09.2022 As at 30.06.2022

Ordinary shares 227,354,462 227,354,462

227,354,462 227,354,462
4 Market price per share
Quarter ended Quarter ended
30.09.2022 30.06.2022
Rs. Rs.
Highest 79.90 74.00
Lowest 56.00 50.10
Last traded 68.60 58.00

5 Number of shares held by individual Directors are as follows: As at As at

30.09.2022 30.06.2022
A.D.B. Talwatte Nil Nil
E.H. Wijenaike 35,039,742 35,039,742
A.K. Gunaratne 1,810,661 1,810,661
D.P. de Silva 225,117 225,117
Dr. (Mrs.) A.D.N. de Zoysa Nil Nil
A.R. Fernando Nil Nil
C.K. Hettiarachchi 134,399 134,399
K.B. Herath Nil Nil
M.H.de Silva Nil Nil
C.S.Hettiarachchi 27,093 27,093

6 Twenty largest shareholders of the Company are as follows: As at 30.09.2022 *As at 30.06.2022
Number of shares % Number of shares %

1 Corporate Services (Pvt) Ltd. A/C No.01 36,625,096 16.11 36,625,096 16.11
2 E.H. Wijenaike 35,039,742 15.41 35,039,742 15.41
3 Employees Provident Fund 24,419,181 10.74 24,419,181 10.74
4 Thurston Investments Limited 13,524,392 5.95 13,239,955 5.82
5 Hallsville Trading Group INC 12,283,136 5.40 12,283,136 5.40
6 Ceylon Investment PLC A/C No.02 8,804,536 3.87 8,804,536 3.87
7 A.J. Wijenaike 7,091,476 3.12 7,091,476 3.12
8 Ceylon Guardian Investment Trust PLC A/C No.02 6,070,801 2.67 6,070,801 2.67
9 E.W. Balasuriya & Co.(Pvt) Ltd. 6,036,450 2.66 5,586,516 2.46
10 N.W. Wijegoonawardena 4,687,434 2.06 4,687,434 2.06
11 C.R. Dunuwille 2,923,384 1.29 2,923,384 1.29
12 N.M. Gunawardana 2,818,820 1.24 2,818,820 1.24
13 P.R. Munasinha 2,659,783 1.17 2,659,783 1.17
14 Rubber Investment Trust Limited. A/C No.01 2,253,312 0.99 4,403,312 1.94
15 Sri Lanka Insurance Corporation Ltd. -Life Fund. 2,007,199 0.88 2,007,199 0.88
16 S.K. Wedande 1,847,633 0.81 1,847,633 0.81
17 Employees Trust Fund Board 1,832,061 0.81 1,832,061 0.81
18 A.K. Gunaratne 1,810,661 0.80 1,810,661 0.80
19 P.M. Wijenaike 1,683,206 0.74 1,683,206 0.74
20 R.P.Weerasooriya 1,650,000 0.73 800,524 0.35
176,068,303 77.44 176,634,456 77.69
Others 51,286,159 22.56 50,720,006 22.31
Total 227,354,462 100.00 227,354,462 100.00

*Comparative shareholdings as at 30.06.2022 held by the twenty largest shareholders as at 30.09.2022.

CENTRAL FINANCE COMPANY PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS

7 Public holding
The company qualifies under option two of the minimum public holding requirement No.7.14.1 of the Listing Rules of the Colombo Stock Exchange as of 30.09.2022 and relevant
information is given below.

As at 30.09.2022
Float adjusted market capitalization Public holding percentage (%) Number of public shareholders

Minimum requirement Available Minimum Available Minimum Available

amount requirement requirement
Rs.7.5 Bn Rs.9.92 Bn 5% 63.59% 500 4,201

As at 30.06.2022
Float adjusted market capitalization Public holding percentage (%) Number of public shareholders

Minimum requirement Available Minimum Available Minimum Available

amount requirement requirement
Rs.7.5 Bn Rs.8.38 Bn 5% 63.59% 500 4,296

8 Tax assessments
Company and the group
The outstanding tax assessments related to the Company as of 30.09.2022 amounted to Rs. 2,085 Mn which have been duly appealed as of 30.09.2022. The outstanding tax
assessments related to group Companies amounted to Rs. 2.76 Mn in CF Insurance Brokers (Pvt) Ltd. & Rs. 40.50 Mn in Hedges Court Residencies (Pvt) Ltd which have been
duly appealed as of 30.09.2022.

9 Finance cost of the Group including interest expense and foreign exchange loss other than the parent are categorised under premises, equipment, establishment and other expenses.
10 Classification of financial assets and liabilities - Group

The following table analyses the carrying amounts of the financial instruments by category as defined in Sri Lanka Accounting Standard - SLFRS
9 Financial Instruments.

Financial assets and financial liabilities measured at fair value - fair value hierarchy
Fair value through profit or loss financial assets - Group
30.09.2022 Level 1 Level 02 Level 03 Total
Rs.'000 Rs.'000 Rs.'000 Rs.'000
Investments in quoted securities 426,691 - - 426,691
Unquoted equities - - 111,602 111,602
Investments in units - 129,813 - 129,813
426,691 129,813 111,602 668,106

Fair value through profit or loss financial assets - Group

31.03.2022 Level 1 Level 02 Level 03 Total
Rs.'000 Rs.'000 Rs.'000 Rs.'000
Investments in quoted securities 443,619 - - 443,619
Unquoted equities - - 104,794 104,794
Investments in units - 1,107,471 - 1,107,471
443,619 1,107,471 104,794 1,655,884

Fair value through profit or loss financial assets - Company

30.09.2022 Level 1 Level 02 Level 03 Total
Rs.'000 Rs.'000 Rs.'000 Rs.'000
Investments in quoted securities 233,376 - - 233,376
Unquoted equities - - 109,625 109,625
233,376 - 109,625 343,001

Fair value through profit or loss financial assets - Company

31.03.2022 Level 1 Level 02 Level 03 Total
Rs.'000 Rs.'000 Rs.'000 Rs.'000
Investments in quoted securities 237,676 - - 237,676
Unquoted equities - - 102,817 102,817
Investments in units - 627,600 - 627,600
237,676 627,600 102,817 968,093

Level 3 - fair value measurement

The following table shows a reconciliation from the beginning balance to the ending balance for fair value measurement in level 3 of the fair value
hierarchy.
Group Company
As at 30.09.2022 31.03.2022 30.09.2022 31.03.2022
Rs.'000 Rs.'000 Rs.'000 Rs.'000
Balance at the beginning of the period/year 104,794 104,335 102,817 102,337
Changes in fair value during the period/year 6,808 459 6,808 480
Balance at the end of the period/year 111,602 104,794 109,625 102,817

Level 01 valuations are based on market prices published by the Colombo Stock Exchange for shares quoted on the Colombo Stock Exchange
and Level 2 valuations for units are based on the prices published by fund managers for respective funds.
Level 03 valuations have been determined using valuation techniques which approximate the fair value.
There have been no transfers among levels 01, 02 and 03.
10 Analysis of financial assets and liabilities by measurement basis - Group
As at 30.09.2022
Amortised cost Fair value Total
Level 1 Level 2 Level 3
Description Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Cash and cash equivalents 1,036,997 - 1,036,997 - 1,036,997
Securities bought under repurchase agreements 2,331,148 - 2,329,542 - 2,329,542
Financial assets at amortised cost- Debt and other financial instruments 23,800,522 - 22,598,430 - 22,598,430
Financial assets at amortised cost- Loans and receivables from customers 4,917,636 - 4,723,481 - 4,723,481
Financial assets at amortised cost- Net investment in leases and hire purchase 46,359,898 - 46,359,898 - 46,359,898
Trade receivables 856,644 - 856,644 - 856,644
Other financial assets 80,886 - 80,886 - 80,886
Total financial assets 79,383,731 - 77,985,878 - 77,985,878

Bank overdrafts 164,201 - 164,201 - 164,201

Financial liabilities at amortised cost -Deposits 40,434,075 - 40,029,574 - 40,029,574
Financial liabilities at amortised cost -Interest bearing borrowings 549,789 - 543,173 - 543,173
Lease liabilities 408,648 - 239,543 - 239,543
Other financial liabilities 736,441 - 736,441 - 736,441
Total financial liabilities 42,293,154 - 41,712,932 - 41,712,932

Analysis of financial assets and liabilities by measurement basis - Group

As at 31.03.2022
Amortised cost Fair value Total
Level 1 Level 2 Level 3
Description Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Cash and cash equivalents 1,199,681 - 1,199,681 - 1,199,681
Securities bought under repurchase agreements 5,201,821 - 5,111,201 - 5,111,201
Financial assets at amortised cost- Debt and other financial instruments 22,310,336 - 21,397,154 - 21,397,154
Financial assets at amortised cost- Loans and receivables from customers 4,724,669 - 4,494,546 - 4,494,546
Financial assets at amortised cost- Net investment in leases and hire purchase 53,901,589 - 53,901,589 - 53,901,589
Trade receivables 1,589,992 - 1,589,992 - 1,589,992
Other financial assets 67,667 - 67,667 - 67,667
Total financial assets 88,995,755 - 87,761,830 - 87,761,830

Bank overdrafts 224,369 - 224,369 - 224,369

Financial liabilities at amortised cost -Deposits 48,715,464 - 49,010,033 - 49,010,033
Financial liabilities at amortised cost -Interest bearing borrowings 708,465 - 697,388 - 697,388
Lease liabilities 425,001 - 423,788 - 423,788
Other financial liabilities 1,952,999 - 1,952,999 - 1,952,999
Total financial liabilities 52,026,298 - 52,308,577 - 52,308,577

Analysis of financial assets and liabilities by measurement basis - Company

As at 30.09.2022
Amortised cost Fair value Total
Level 1 Level 2 Level 3
Description Rs.'000 Rs.'000 Rs.'000 Rs.'000
Cash and cash equivalents 675,270 - 675,270 - 675,270
Securities bought under repurchase agreements 2,331,148 - 2,329,542 - 2,329,542
Financial assets at amortised cost- Debt and other financial instruments 22,152,634 - 21,191,943 - 21,191,943
Financial assets at amortised cost- Loans and receivables from customers 4,918,824 - 4,385,700 - 4,385,700
Financial assets at amortised cost- Net investment in leases and hire purchase 46,359,898 - 46,359,898 - 46,359,898
Other financial assets 85,636 - 85,636 - 85,636
Total financial assets 76,523,410 - 75,027,989 - 75,027,989

Bank overdrafts 126,255 - 126,255 - 126,255

Financial liabilities at amortised cost -Deposits 40,712,404 - 40,307,904 - 40,307,904
Financial liabilities at amortised cost -Interest bearing borrowings 64,760 - 65,337 - 65,337
Lease liabilities 510,641 - 341,536 - 341,536
Other financial liabilities 348,624 - 348,624 - 348,624
Total financial liabilities 41,762,684 - 41,189,656 - 41,189,656

Analysis of financial assets and liabilities by measurement basis - Company

As at 31.03.2022
Amortised cost Fair value Total
Level 1 Level 2 Level 3
Description Rs.'000 Rs.'000 Rs.'000 Rs.'000
Cash and cash equivalents 697,234 - 697,234 - 697,234
Securities bought under repurchase agreements 5,201,821 - 5,111,201 - 5,111,201
Financial assets at amortised cost- Debt and other financial instruments 20,933,341 - 20,020,159 - 20,020,159
Financial assets at amortised cost- Loans and receivables from customers 4,727,838 - 4,497,715 - 4,497,715
Financial assets at amortised cost- Net investment in leases and hire purchase 53,901,589 - 53,901,589 - 53,901,589
Other financial assets 76,805 - 76,805 - 76,805
Total financial assets 85,538,628 - 84,304,703 - 84,304,703

Bank overdrafts 215,438 - 215,438 - 215,438

Financial liabilities at amortised cost -Deposits 49,024,182 - 49,318,751 - 49,318,751
Financial liabilities at amortised cost -Interest bearing borrowings 88,329 - 88,158 - 88,158
Lease liabilities 542,760 - 541,547 - 541,547
Other financial liabilities 617,316 - 617,316 - 617,316
Total financial liabilities 50,488,025 - 50,781,210 - 50,781,210
11 The COVID - 19 pandemic which severely impacted the business and economic activities resulted in a significant impairment charge amounting to Rs. 1.57 Bn for
the prior interim financial period ended 30 September 2021. From the latter part of 2021, the Company took strategic initiatives to continuously engage with the
customer base and provide customer-centric financial solutions for repayments in a sustainable manner which resulted in better recoveries which in turn has
resulted in lower impairment charge of Rs. 306.82 Mn for the interim financial period ended 30 September 2022.

In assessing the Expected Credit Loss (ECL) for the quarter ended 30 September 2022 , the Company has taken into consideration the potential losses in loans
and lease portfolios due to significant deterioration in the macro-economic indicators and increased level of uncertainties. Due to lack of historic data to address
the prevailing volatile economic conditions, the Company has built management overlays for the potential impairment arising from the loans and lease portfolios,
outside the ECL model by using various scenario based stress testing techniques to ensure adequate provision for impairment is recognised in the financial
statements as of 30 September 2022.

12 The Company and Group paid the surcharge tax arising from Surcharge Tax Act No. 14 of 2022.amounting to Rs. 2,175.4 Mn and Rs. 2,587.3 Mn respectively
pertaining to the year of assessment 2020/21. The tax attributable to the Group arising from Nations Trust Bank PLC (associate company), amounting to Rs. 403.9
Mn had been accounted against investments in equity accounted investee.
Surcharge Tax Act No. 14 of 2022 supersedes the requirements of the Sri Lanka Accounting Standards and tax shall be deemed to be an expenditure for the year
of assessment which commenced on 1 April 2020 as per the Statement of Alternative Treatment (SoAT) issued by the Institute of Chartered Accountants of Sri
Lanka. Accordingly, total Surcharge Tax liability of Rs. 2,175.4 Mn (Company) and Rs.2,587.3 Mn (Group) has been accounted as an opening adjustment to the 1
April 2022 Retained Earnings in the Statement of Changes in Equity.

13 There have been no material events subsequent to the reporting date which require adjustments to or disclosure in these interim Financial Statements.
BUSINESS SEGMENT INFORMATION

Leasing, hire purchase and other Medical services Power generation* Manufacturing Insurance broking Investments Real estate Intra segmental adjustments Total
All figures in Rs.000 advances
For the six months ended 30th September 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Revenue
Interest income 5,941,734 6,393,367 9,018 642 - - 61,049 14,092 121,206 12,869 2,152,628 219,808 413 74 - - 8,286,048 6,640,852
Other revenue - - 65,481 45,190 - 52,213 2,130,129 3,082,154 122,450 120,305 - - - - - - 2,318,060 3,299,862
Net income from financial instruments at FVTPL 89 2,991 (4,395) 11,037 - - 1,248 10,079 20,645 37,006 2,073 423,261 - - - 19,660 484,374
Operating lease income 515,129 519,518 - - - - - - - - - - - - 515,129 519,518
Other income 371,838 417,934 656 258 - - 3,138 13,525 1,003 63,133 - 160,098 817 1,130 - (43,718) 377,452 612,360
Income from external customers 6,828,790 7,333,810 70,760 57,127 - 52,213 2,195,564 3,119,850 265,304 233,313 2,154,701 803,167 1,230 1,204 - (43,718) 11,516,349 11,556,966
Inter - segment income 25,635 9,580 1 1 - 1,487 21 13 7,750 10,462 82,601 106,190 21,593 24,817 (137,601) (152,550) - -
Total income 6,854,425 7,343,390 70,761 57,128 - 53,700 2,195,585 3,119,863 273,054 243,775 2,237,302 909,357 22,823 26,021 (137,601) (196,268) 11,516,349 11,556,966
Expenses
Interest expenses (2,029,124) (1,856,226) - - - - - - - - (101,039) (106,851) (1,905) (6,337) 5,827 7,388 (2,126,241) (1,962,026)
Depreciation & amortisation (285,609) (317,421) (4,885) (5,108) - - (26,537) (26,664) (7,936) (7,539) - - (1,238) (1,238) 23,623 23,463 (302,582) (334,507)
Cost of sales - - (30,687) (22,395) - (11,448) (1,170,982) (2,533,841) - - - - - - - - (1,201,669) (2,567,684)
Impairments and other credit losses (289,706) (1,572,917) (16) 9 - - (131,377) 2 (520) (232) (17,118) 7,203 (3) 14 5 (55) (438,735) (1,565,976)
Other operating and administrative expenses (1,957,924) (1,704,713) (23,526) (23,652) - (833) (544,146) (202,908) (52,882) (49,144) (181) (544) (4,121) (7,214) (30,992) (26,540) (2,613,772) (2,015,548)
(4,562,363) (5,451,277) (59,114) (51,146) - (12,281) (1,873,042) (2,763,411) (61,338) (56,915) (118,338) (100,192) (7,267) (14,775) (1,537) 4,256 (6,682,999) (8,445,741)
Inter - segment expenses (35,348) (33,663) (1,420) - - (1,336) - - (23,321) (8,371) (614) (474) (614) (537) 61,317 44,381 - -
Total expenses (4,597,711) (5,484,940) (60,534) (51,146) - (13,617) (1,873,042) (2,763,411) (84,659) (65,286) (118,952) (100,666) (7,881) (15,312) 59,780 48,637 (6,682,999) (8,445,741)
Segment results 2,256,714 1,858,450 10,227 5,982 - 40,083 322,543 356,452 188,395 178,489 2,118,350 808,691 14,942 10,709 (77,821) (147,631) 4,833,350 3,111,225
Share of profit of equity accounted investees 883,049 679,620
Operating profit before taxes on financial services 5,716,399 3,790,845
Taxes on financial services (754,118) (415,708)
Profit before tax 4,962,281 3,375,137
Income tax expense (1,123,217) (793,105)
Profit for the period 3,839,064 2,582,032
Non-controlling interest 159,665 164,680
Profit attributable to equity holders of the parent 3,679,399 2,417,352

As at As at As at As at As at As at As at As at As at As at As at As at
As at 30.09.2022 31.03.2022 As at 30.09.2022 31.03.2022 30.09.2022 31.03.2022 30.09.2022 31.03.2022 As at 30.09.2022 31.03.2022 As at 30.09.2022 31.03.2022 30.09.2022 31.03.2022 As at 30.09.2022 31.03.2022 As at 30.09.2022 31.03.2022

Segment assets 62,388,901 70,323,193 660,386 642,623 - - 4,438,737 5,392,846 2,728,196 2,514,273 28,296,214 30,334,397 909,743 933,504 (4,778,911) (4,538,267) 94,643,266 105,602,569
Investments in associates - - - - - - - - - - - - - - - - 10,026,607 9,221,337
Unallocated assets - - - - - - - - - - - - - - - - 1,266,190 782,043
Total assets 62,388,901 70,323,193 660,386 642,623 - - 4,438,737 5,392,846 2,728,196 2,514,273 28,296,214 30,334,397 909,743 933,504 (4,778,911) (4,538,267) 105,936,063 115,605,949
Segment liabilities 40,227,417 48,053,143 89,072 78,924 - - 1,383,465 2,643,963 312,187 295,900 1,940,312 2,772,365 402,259 461,622 (797,420) (837,949) 43,557,292 53,467,968
Unallocated liabilities - - - - - - - - - - - - - - - - 3,793,560 4,667,828
Total liabilities 40,227,417 48,053,143 89,072 78,924 - - 1,383,465 2,643,963 312,187 295,900 1,940,312 2,772,365 402,259 461,622 (797,420) (837,949) 47,350,852 58,135,796

For the six months ended 30th September 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2,021

Additions to non-current assets 47,154 252,629 8,775 9 - - 54,122 13,710 45 - - - - - - - 110,096 266,348
Additions to intangible assets 11,632 225 - - - - - 806 - - - - - - - - 11,632 1,031
Additions to right of use assets 36,616 53,145 - - - - - - - - - - - - - - 36,616 53,145
-
Cash flows from operating activities (1,815,856) 2,959,569 10,364 (6,980) - - (269,597) (45,055) 119,503 75,907 2,543,724 (550,311) 5,964 19,209 25,486 120,646 619,588 2,572,985
Net cash generated from operating activities (1,815,856) 2,959,569 10,364 (6,980) - - (269,597) (45,055) 119,503 75,907 2,543,724 (550,311) 5,964 19,209 25,486 120,646 619,588 2,572,985

Cash flows from investing activities (126,568) (198,790) 569 3,204 - - 223,409 17,139 (110,372) (19,603) 49,195 276,737 27,292 (3,488) (61,875) (158,047) 1,650 (82,848)
Net cash used in investing activities (126,568) (198,790) 569 3,204 - - 223,409 17,139 (110,372) (19,603) 49,195 276,737 27,292 (3,488) (61,875) (158,047) 1,650 (82,848)

Cash flows from financing activities (582,907) (1,575,230) - - - - (135,178) 182,281 (9,630) (5,492) - - (32,349) (15,752) 36,389 36,499 (723,675) (1,377,694)
Net cash used in financing activities (582,907) (1,575,230) - - - - (135,178) 182,281 (9,630) (5,492) - - (32,349) (15,752) 36,389 36,499 (723,675) (1,377,694)

Geographic information
The Group function in one geographic location. Accordingly, geographic information is not presented in the financial statements.

* The disposal of investment held in Mark Marine Services (Pvt) Ltd in September 2021 resulted in discontinuation of operations in the “power generation” segment.

As the post tax profit of discontinued operations are insignificant to the group, the said disposal has not been identified as discontinued operations separately in the Consolidated Statement of Comprehensive Income for the Quarter Ended 30th September 2021.
 CORPORATE INFORMATION
NAME OF COMPANY BANKERS
Central Finance Company PLC Bank of Ceylon
Commercial Bank of Ceylon PLC
LEGAL FORM Hatton National Bank PLC
A Quoted Public Company with limited liability incorporated in Sri Lanka NDB Bank PLC
on 5th December 1957 and registered under the Companies Act No.07 Nations Trust Bank PLC
of 2007. People’s Bank
Registered under Finance Business Act No.42 of 2011 and Finance Leasing Sampath Bank PLC
Act No.56 of 2000. Seylan Bank PLC
Approved Credit Agency under: DFCC Bank PLC
• Mortgage Act No.6 of 1949 State Bank of India
• Trust Receipt Ordinance No.12 of 1947

COMPANY REGISTRATION NUMBER AUDITOR

PQ 67 KPMG,
Chartered Accountants,
CREDIT RATING 32 A, Sir Mohamed Macan Markar Mawatha,
Rated A+(lka) (Rating Watch Negative) by Fitch Ratings Lanka Ltd. Colombo 03.

DIRECTORS LEGAL ADVISER

A.D.B. Talwatte - Independent Non - executive Director / Chairman F.J. & G. de Saram,
E.H. Wijenaike - Managing Director / Chief Executive Officer Attorneys-at-Law,
A.K. Gunaratne - Deputy Managing Director/Deputy Chief Executive Officer P.O. Box 212,
D.P. de Silva - Director/Chief Operating Officer Colombo.
Dr.(Mrs).A.D.N. de Zoysa - Independent Non - executive Director
A.R. Fernando - Non - executive Director
C.K. Hettiarachchi - Director (Marketing)
K.B. Herath - Independent Non - executive Director
M.H.de Silva - Independent Non - executive Director
C.S.Hettiarachchi - Director (Corporate Affairs)
COMPANY SECRETARY
Corporate Services (Pvt) Limited,
216, de Saram Place,
STOCK EXCHANGE LISTING Colombo10.
The ordinary shares of the Company are listed on the Colombo Stock Exchange. Telephone : 011 - 4605100
Facsimile : 011 - 4718220

HEAD / REGISTERED OFFICE

84, Raja Veediya, Kandy.
Telephone : 081 - 2227000
Facsimile : 081 - 2232047

CITY OFFICE
270, Vauxhall Street, Colombo 2.
Telephone : 011 - 2300555
Facsimile : 011 - 2300441
E-mail : cenfin@cf.lk
Website : www.centralfinance.lk

BRANCH OFFICES
Akuressa, Alawwa, Aluthgama, Ambalangoda, Ampara, Anuradhapura, Aralaganwila, Athurugiriya, Avissawella, Badulla, Bakamuna, Balangoda,
Bandaragama, Bandarawela, Batticaloa, Chilaw, Dambulla, Dehiattakandiya, Digana, Divulapitiya,Eheliyagoda, Elpitiya, Embilipitiya, Galewela, Galle,
Gampaha, Gampola, Giriulla, Godakawela, Hambantota, Hanwella, Hatton, Hettipola, Hingurakgoda, Hiripitiya, Homagama, Horana, Ja-Ela, Jaffna,
Kadawatha,Kaduwela, Kalmunai, Kalutara, Kantale, Katugastota, Kegalle, Kekirawa, Killinochchi, Kiribathgoda, Kirindiwela, Kuliyapitiya, Kurunegala,
Maharagama, Mahiyanganaya, Maho, Malabe, Mannar, Maradana, Matale, Matara, Matugama, Mawanella, Mawathagama, Melsiripura, Minuwangoda,
Mirigama, Monaragala, Narammala,Natttandiya, Nawalapitiya, Negombo, Nikaweratiya, Nittambuwa, Nochchiyagama, Nugegoda,
Nuwaraeliya,Padukka, Panadura, Pilimathalawa, Piliyandala, Polonnaruwa, Pottuvil, Puttalam, Ragama, Rajagiriya, Rambukkana, Ratmalana,
Ratnapura, Rikillagaskada, Talawathugoda, Tambuttegama, Tissamaharama, Trincomalee, Vavuniya,Walasmulla,Warakapola,Wariyapola, Wattala,
Welimada, Wellawaya, Wennappuwa.