9 Financial reports

Statement of Profit or Loss

		Company			Group
For the year ended 31 March	Note	2019 Rs. ’000	2018 Rs. ’000	Change %	2019 Rs. ’000	2018 Rs. ’000	Change %
Gross income	5	32,735,639	28,603,037	14.45	38,356,205	33,144,417	15.72
Interest income	6.1	30,836,300	26,704,635	15.47	32,234,340	27,582,045	16.87
Less: interest expense	6.2	15,646,099	14,500,158	7.90	15,891,298	14,626,672	8.65
Net interest income	6	15,190,201	12,204,477	24.46	16,343,042	12,955,373	26.15
Net earned premium	7	–	–	–	4,728,573	4,053,270	16.66
Fee and commission income	8	1,508,952	1,378,361	9.47	1,004,297	819,727	22.52
Net gains/(losses) on financial assets – fvtpl/Held for trading	9	(27,887)	18,987	(246.87)	(44,351)	59,910	(174.03)
Net gains/( losses) from derecognision of financial assets		–	–	–	–	–	–
Other operating income	10	418,274	501,054	(16.52)	433,346	629,465	(31.16)
Total operating income		17,089,540	14,102,879	21.18	22,464,907	18,517,745	21.32
Less: impairment charges for loans and receivables and other losses	11	1,586,506	1,429,971	10.95	1,708,203	1,470,062	16.20
Impairment charges for investment in associate	30	348,794	–	100.00	152,572	–	100.00
Impairment charges for goodwill	33	19,580	–	100.00	19,580	–	100.00
Net operating income		15,134,660	12,672,908	19.43	20,584,552	17,047,683	20.75
Less: expenses
Personnel expenses	12	3,438,167	2,974,253	15.60	4,166,618	3,391,640	22.85
Depreciation and amortisation	13	179,607	192,506	(6.70)	302,360	294,235	2.76
Benefits, claims and underwriting expenditure	14	–	–	–	3,328,705	2,776,132	19.90
Other operating expenses	15	2,844,419	2,436,355	16.75	3,048,420	2,543,486	19.85
Total operating expenses		6,462,193	5,603,114	15.33	10,846,103	9,005,493	20.44
Operating profit before taxes on financial services		8,672,467	7,069,794	22.67	9,738,449	8,042,190	21.09
Less: tax on financial services	16	2,087,210	1,300,122	60.54	2,117,910	1,326,916	59.61
Operating profit after taxes on financial services		6,585,257	5,769,672	14.14	7,620,539	6,715,274	13.48
Share of profit/(loss) of an associate (net of tax)	30.1	–	–	–	(33,234)	(52,942)	37.23
Profit before income tax expense		6,585,257	5,769,672	14.14	7,587,305	6,662,332	13.88
Less: income tax expense	17	2,169,136	1,460,342	48.54	2,576,037	1,644,619	56.63
Profit for the year		4,416,121	4,309,330	2.48	5,011,268	5,017,713	(0.13)
Profit attributable to –
Equity holders of the Company		4,416,121	4,309,330	2.48	4,813,578	4,816,920	(0.07)
Non-controlling interest	48	–	–	–	197,690	200,793	(1.55)
Profit for the year		4,416,121	4,309,330	2.48	5,011,268	5,017,713	(0.13)
Basic/Diluted earnings per ordinary share (Rs.)	18	2.80	2.73	2.56	3.05	3.05	–
Dividend per ordinary share (Rs.)	19	1.25	1.25	–

The Notes appearing on this Annual Report form an integral part of these Financial Statements.