| BANK | GROUP | |||
| Year ended 31 December 2016 LKR 000 | 9 months ended 31 December 2015 LKR 000 | Year ended 31 December 2016 LKR 000 | 9 months ended 31 December 2015 LKR 000 | |
| Cash flows from operating activities | ||||
| Interest receipts | 19,317,134 | 7,238,360 | 19,315,252 | 12,887,530 |
| Interest payments | (13,071,125) | (5,375,259) | (13,039,859) | (8,432,834) |
| Recoveries on loans previously written-off | 24,499 | 23,267 | 24,499 | 31,463 |
| Receipts from other operating activities | 1,643,470 | 2,237,257 | 1,923,001 | 3,556,605 |
| Cash payments to employees and suppliers | (4,657,702) | (1,790,725) | (4,802,292) | (3,669,959) |
| Value added tax and nation building tax on financial services | (798,410) | (327,844) | (798,410) | (589,020) |
| Other levies | (157,564) | (29,199) | (157,564) | (37,844) |
| Operating cash flows before changes in operating assets and liabilities |
2,300,302 | 1,975,857 | 2,464,627 | 3,745,941 |
| (Increase)/decrease in operating assets | ||||
| Deposits held for regulatory or monetary control purposes | (2,508,759) | (2,308,744) | (2,508,757) | (2,937,403) |
| Funds advanced to customers | (33,070,446) | (12,925,166) | (33,070,447) | (27,448,299) |
| Others | (339,086) | 576,482 | (330,443) | 660,963 |
| Increase in operating liabilities | ||||
| Deposits from customers | 27,978,909 | 13,298,437 | 28,239,834 | 17,122,636 |
| Negotiable certificates of deposit | 32,898 | 18,055 | 32,898 | 143,675 |
| Others | 668,519 | 135,829 | 668,834 | 137,817 |
| Net cash flows from/(used in) operating activities before income tax |
(4,937,663) | 770,750 | (4,503,454) | (8,574,670) |
| Income tax paid | (649,287) | (951,490) | (694,286) | (1,248,318) |
| Net cash flows used in operating activities | (5,586,950) | (180,740) | (5,197,740) | (9,822,988) |
| Cash flows from investing activities | ||||
| Dividend received | 688,785 | 563,704 | 604,526 | 284,255 |
| Interest received | 3,190,625 | 1,104,679 | 3,226,799 | 1,398,108 |
| Government Securities – net | (4,102,903) | (4,818,751) | (4,102,903) | (9,002,938) |
| Proceeds from sale and redemption of securities | 748,838 | 558,085 | 748,838 | 558,085 |
| Purchase of securities | (778,566) | (2,496,929) | (778,566) | (2,214,741) |
| Investment in joint venture | (100,000) | – | (100,000) | – |
| Purchase of property, equipment, intangibles and investment property |
(277,384) | (118,534) | (370,960) | (318,201) |
| Proceeds from sale of equipment and investment property | 10,647 | 2,810 | 10,654 | 2,873 |
| Net cash used in investing activities | (619,958) | (5,204,936) | (761,612) | (9,292,559) |
| BANK | GROUP | |||||||
| Year ended 31 December 2016 LKR 000 | 9 months ended 31 December 2015 LKR 000 | Year ended 31 December 2016 LKR 000 | 9 months ended 31 December 2015 LKR 000 | |||||
| Cash flows from financing activities | ||||||||
| Payment to minority shareholders on amalgamation | – | (122,408) | – | (122,408) | ||||
| Issue of debentures | 12,315,450 | – | 12,315,450 | – | ||||
| Redemption of debentures | (2,096,000) | – | (2,096,000) | – | ||||
| Borrowing, medium and long-term | 4,484,011 | 3,318,581 | 4,484,011 | 3,315,727 | ||||
| Other borrowing – net | (2,628,484) | 7,094,903 | (2,628,484) | 20,167,940 | ||||
| Repayment of borrowing, medium and long-term | (3,836,433) | (3,505,648) | (3,836,433) | (3,505,649) | ||||
| Dividends paid | (654,832) | (1,572,012) | (835,442) | (1,628,735) | ||||
| Net cash flows from financing activities | 7,583,712 | 5,213,416 | 7,403,102 | 18,226,875 | ||||
| Net increase/(decrease) in cash and cash equivalents | 1,376,804 | (172,260) | 1,443,750 | (888,672) | ||||
| Cash and cash equivalents at the beginning of period | 4,305,247 | 498,619 | 4,316,495 | 5,205,167 | ||||
| Cash and cash equivalents of DFCC Vardhana Bank PLC as at the date of amalgamation |
– | 3,978,888 | – | – | ||||
| Cash and cash equivalents at the end of period | 5,682,051 | 4,305,247 | 5,760,245 | 4,316,495 | ||||
| Reconciliation of cash and cash equivalents with items reported in the statement of financial position |
||||||||
| Cash and cash equivalents (Note 25) | 4,330,934 | 4,305,247 | 4,344,260 | 4,314,777 | ||||
| Placements with banks (Note 27) |
1,351,117 | – | 1,415,985 | 1,718 | ||||
| 5,682,051 | 4,305,247 | 5,760,245 | 4,316,495 | |||||
Reconciliation of profit for the year/period to net cash flows used in operating activities.
| BANK | GROUP | |||
| 12 months ended 31 December 2016 LKR 000 | 9 months ended 31 December 2015 LKR 000 | 12 months ended 31 December 2016 LKR 000 | 9 months ended 31 December 2015 LKR 000 | |
| Profit for the year/period | 3,288,723 | 1,068,350 | 3,469,074 | 1,641,628 |
| Add/(deduct) items not using cash: | 1,236,907 | 350,718 | 1,099,602 | 846,098 |
| Depreciation – Property, equipment and investment property | 233,079 | 114,781 | 271,332 | 247,234 |
| Amortisation – Intangible assets | 98,262 | 42,538 | 98,567 | 102,158 |
| Unrealised gain on Treasury Bills and Bonds | (164,110) | (95,558) | (164,110) | (96,659) |
| Net gain/(loss) from financial instruments at fair value – Contracts with commercial banks |
93,944 | 14,368 | 93,944 | (60,545) |
| – CBSL Swap | 83,606 | (14,038) | 83,606 | (14,038) |
| – Interest rate Swap | 2,177 | – | 2,177 | – |
| Amortisation of deferred income on Government grant | (180,106) | 130,288 | (180,106) | 130,288 |
| Foreign exchange loss/(gain) | 330,157 | (17,139) | 330,154 | (77,984) |
| Impairment for loans and other losses | 937,267 | 224,939 | 916,344 | 795,327 |
| Notional tax credit on Treasury Bills and Bonds | (249,914) | (73,394) | (249,914) | (148,712) |
| Share of profits of associate and joint venture | – | – | (161,151) | (78,693) |
| Provision for defined benefit plans | 52,545 | 23,933 | 58,759 | 47,722 |
| Deduct items reported gross under investing activities: | (4,119,146) | (1,570,987) | (4,052,777) | (1,878,276) |
| Dividend income | (856,306) | (536,276) | (772,046) | (218,569) |
| Gains on sale of financial investment | (152,186) | (37,018) | (152,186) | (37,018) |
| Gain on sale of equipment and investment property | (7,694) | (2,654) | (13,631) | (3,050) |
| Interest income from investments | (3,102,960) | (995,039) | (3,114,914) | (1,619,639) |
| Deduct changes in operating assets and liabilities: | (5,993,434) | (28,821) | (5,713,639) | (10,432,438) |
| (Increase)/decrease in accounts receivable | (1,565,071) | 1,090,271 | (1,579,615) | 1,128,570 |
| Increase in accounts payable | 2,334,083 | 516,589 | 2,323,939 | 1,096,079 |
| Increase/(decrease) in income tax payable | 446,392 | (36,940) | 509,872 | (94,908) |
| Decrease/(Increase) in deferred tax | 29,127 | (393,634) | 246 | (241,568) |
| Increase in operating assets | (35,918,291) | (14,657,428) | (35,909,647) | (29,724,739) |
| Increase in operating liabilities | 28,680,326 | 13,452,321 | 28,941,566 | 17,404,128 |
| Net cash used in operating activities | (5,586,950) | (180,740) | (5,197,740) | (9,822,988) |
