People’s Leasing & Finance PLC
Annual Report 2019/20
Statement of Cash Flows
Accounting policy
The Statement of Cash Flows has been prepared by using the “Indirect Method” of preparing cash flows in accordance with the Sri Lanka Accounting Standard – LKAS 7 on “Statement of Cash Flows”, whereby operating activities, investing activities and financing activities are separately recognised. Cash and Cash Equivalents comprise of short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Cash and cash equivalents as referred to in the Statement of
Cash Flows are comprised of those items as explained in Notes 50 to 52 on pages 249 and 250.
| Company | Group | |||||
| For the year ended 31 March | Note | Page No. | 2020 Rs. ’000 |
2019 Rs. ’000 |
2020 Rs. ’000 |
2019 Rs. ’000 |
| Cash flows from operating activities | ||||||
| Profit before income tax expense | 4,551,825 | 6,585,257 | 5,702,317 | 7,587,305 | ||
| Adjustment for: | ||||||
| Non-cash items included in profits before income tax | 50 | 249 | 5,675,637 | 2,358,912 | 5,823,119 | 2,411,109 |
| Change in operating assets | 51 | 250 | 2,235,794 | (16,346,695) | (82,151) | (19,792,535) |
| Change in operating liabilities | 52 | 250 | 19,433,735 | 17,586,705 | 20,344,695 | 19,674,400 |
| Share of loss in associate, (net of tax) | 30.1 | 217 | – | – | – | 33,234 |
| Dividend income from investments | 10 | 168 | (423,091) | (388,945) | (17,280) | (16,569) |
| Interest expense on due to banks | 6.2 | 165 | 1,736,221 | 4,569,420 | 2,066,943 | 4,857,611 |
| Interest expense on debt securities issued | 6.2 | 165 | 2,281,180 | 2,394,127 | 2,264,940 | 2,378,916 |
| Net unrealised gains/(losses) arising from translating the Financial Statements of foreign subsidiary |
48.5 | 249 | – | – | 139,129 | 259,151 |
| Benefits paid on retirement benefit obligation | 44.1 | 244 | (10,726) | (9,107) | (12,103) | (9,242) |
| Income tax paid | 17.9 | 178 | (3,071,709) | (805,705) | (3,339,472) | (907,945) |
| Net cash from operating activities | 32,408,866 | 15,943,969 | 32,890,137 | 16,475,435 | ||
| Cash flows from investing activities | ||||||
| Purchase of property, plant and equipment | 32 | 220 | (213,928) | (147,667) | (284,215) | (257,371) |
| Proceeds from the sale of property, plant and equipment | 9,976 | 69,903 | 17,612 | 102,629 | ||
| Purchase of intangible assets | 33 | 225 | (15,120) | (8,624) | (15,120) | (12,195) |
| Proceeds from the sale of investment property | 31 | 218 | – | 141,380 | – | 141,380 |
| Dividends received from investments | 113,091 | 246,920 | 17,280 | 16,569 | ||
| Net cash from/(used in) investing activities | (105,981) | 301,912 | (264,443) | (8,988) | ||
| Cash flows from financing activities | ||||||
| Proceeds from due to banks | 36.1 | 229 | 12,950,000 | 59,966,000 | 12,950,000 | 59,966,000 |
| Repayment of due to banks | 36.1 | 229 | (34,046,652) | (77,536,350) | (35,209,177) | (77,456,806) |
| Proceeds from debt securities issued | 38.1 | 233 | – | 6,000,000 | – | 5,874,220 |
| Redemption of debt securities issued | 38.1 | 233 | (3,338,413) | (1,164,060) | (3,338,413) | (1,164,060) |
| Interest paid on debt securities issued | 38.1 | 233 | (1,738,538) | (1,738,538) | (1,722,528) | (1,738,538) |
| Dividend paid to shareholders | (1,930,807) | (1,979,340) | (1,251,466) | (1,979,340) | ||
| Dividend paid to non-controlling interest | 49 | 249 | – | – | (92,500) | (92,500) |
| Net cash from/(used in) financing activities | (28,104,410) | (16,452,288) | (28,664,084) | (16,591,024) | ||
| Net increase/(decrease) in cash and cash equivalents | 4,198,475 | (206,407) | 3,961,610 | (124,577) | ||
| Cash and cash equivalents at 1 April | 2,940,981 | 3,147,388 | 3,036,468 | 3,161,045 | ||
| Cash and cash equivalents at 31 March | 7,139,456 | 2,940,981 | 6,998,078 | 3,036,468 | ||
| Cash and cash equivalents | 22 | 189 | 7,164,139 | 3,294,055 | 7,693,032 | 4,310,595 |
| Overdraft | 36 | 229 | (24,683) | (353,074) | (694,954) | (1,274,127) |
| Cash and cash equivalents at 31 March | 7,139,456 | 2,940,981 | 6,998,078 | 3,036,468 | ||
The Notes appearing on pages 155 to 288 form an integral part of the Financial Statements.