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.

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