Asian Alliance Quarter report 30-09-2024

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INTERIM FINANCIAL STATEMENTS - FOR THE YEAR ENDED 31ST MARCH 2024

SOFTLOGIC LIFE INSURANCE PLC


INCOME STATEMENT

For the Period ended 31 March Note 2024 2023 Change


Rs. ' 000 Rs. ' 000 %
Audited Audited

Gross written premiums 5 7,162,827 5,984,618 20


Premiums ceded to reinsurers (635,640) (639,612) (1)
Net written premiums 6,527,187 5,345,006 22

Other revenue
Net finance income 1,764,710 1,732,591 2
Net realised gains 581,700 39 1491438
Net fair value (losses)/ gains (427,083) 207,236 306
Other operating income 1,945 2,562 (24)
Total other revenue 1,921,272 1,942,428 (1)
Total net revenue 6 8,448,459 7,287,434 16

Net benefits, claims and expenses


Net insurance benefits and claims paid (3,367,726) (3,188,942) 6
Net change in insurance claims outstanding (57,416) 47,830 (220)
Change in insurance contracts liabilities (557,262) 65,026 (957)
Underwriting and net acquisition cost (Net of reinsurance) (1,490,712) (1,371,103) 9
Other operating and administration expenses (1,495,699) (1,261,235) 19
Impairment reversal / (provision) on financial investments 117,878 (156,114) (176)
Finance cost 7 (401,350) (602,136) (33)
Total benefits, claims and expenses (7,252,287) (6,466,674) 12

Profit before tax 8 1,196,172 820,760 46


Income tax expenses (342,559) (319,124) 7

Profit for the period 853,613 501,636 70

Profit attributable to;


Owners of the Company 853,613 501,636 70
Non controlling interest - -
853,613 501,636 70

Earnings per share


Basic earnings per share (Rs.) 17 2.28 1.34 70
Diluted earnings per share (Rs.) 17 2.28 1.34 70

The Notes form an integral part of these Interim Financial Statements.

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SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the Period ended 31 March 2024 2023 Change


Rs. ' 000 Rs. ' 000 %
Audited Audited

Profit for the period 853,613 501,636 70

Other comprehensive income


Items that will not be reclassified to income statement
Equity investments at FVOCI - net change in fair value (55,427) 206,864
Equity investments at FVOCI - net change in fair value - Life fund 37,873 (15,462)
Related tax / deferred tax - -
(17,554) 191,402 (109)

Items that are or may be reclassified subsequently to income statement


Debt investments at FVOCI - net change in fair value (1,186) 64
Debt investments at FVOCI - net change in fair value - Life fund 4,711 17,495
Debt investments at FVOCI - reclassified to income statement - 221
Related tax / deferred tax - -
3,525 17,780 (80)

Total other comprehensive income for the period, net of tax (14,029) 209,182 (107)

Total comprehensive income for the period, net of tax 839,584 710,818 18

Total comprehensive income attributable to:


Owners of the Company 839,584 710,818
Non - controlling interests - -
839,584 710,818 18

The Notes form an integral part of these Financial Statements.

Page 3 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF FINANCIAL POSITION

As at Note 31.03.2024 31.12.2023


Rs. ' 000 Rs. ' 000
Audited Audited

Assets
Intangible assets 2,167 2,364
Property, plant and equipment 717,231 707,427
Right of use assets 673,822 611,661
Deferred Tax Assets 838,938 838,938
Financial investments 10 43,457,777 43,500,215
Loans to life policyholders 328,870 331,301
Reinsurance receivables 590,744 465,211
Premium receivables 2,190,171 2,449,089
Receivables and other assets 1,620,368 1,333,537
Cash and cash equivalents 1,353,313 1,099,679
Total assets 51,773,401 51,339,422

Equity and liabilities


Equity
Stated capital 16 1,062,500 1,062,500
Restricted regulatory reserve 798,004 798,004
Other reserves (2,158,921) (2,144,892)
Retained earnings 13,065,097 13,617,734
Total equity 12,766,680 13,333,346

Liabilities
Insurance contract liabilities 11 28,549,811 27,925,474
Employee benefit liabilities 282,317 276,302
Loans and borrowings 4,802,677 5,014,997
Reinsurance payables 909,082 718,855
Other liabilities 4,093,218 3,693,758
Bank overdraft 369,616 376,690
Total liabilities 39,006,721 38,006,076
Total equity and liabilities 51,773,401 51,339,422

Net asset per share (Rs.) 15 34.04 35.56

The Notes form an integral part of these Interim Financial Statements.


These Financial Statements are in compliance with the requirements of the Companies Act No 07 of 2007.

Sgd.
Nuwan Withanage
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.

Sgd. Sgd.
Ashok Pathirage Iftikar Ahamed
Chairman Managing Director

Colombo
07 May 2024

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SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF CHANGES IN EQUITY
Stated capital Restricted Other Retained Total
For the Period ended 31 March regulatory reserve earnings
reserve Fair value Revaluation
reserve reserves
Rs. ' 000 Rs. ' 000 Rs. ' 000 Rs. ' 000 Rs. ' 000 Rs. ' 000

Balance as at 01 January 2023 1,062,500 798,004 (3,229,988) 129,733 12,112,675 10,872,924

Profit for the period - - - - 501,636 501,636

Other comprehensive income for the period


Equity investments at FVOCI - net change in fair value - - 206,864 - - 206,864
Equity investments at FVOCI - net change in fair value - Life fund - - (15,462) - - (15,462)
Debt investments at FVOCI - net change in fair value - - 64 - - 64
Re-measurement Gain on defined benefit liabilities - - - - - -
Gain on revaluation of land and building - - - - - -
Debt investments at FVOCI - net change in fair value - Life fund - - 17,495 - - 17,495
Debt investments at FVOCI - reclassified to income statement - - 221 - - 221
Total other comprehensive income, net of tax - - 209,182 - - 209,182
Total comprehensive income for the period - - 209,182 - 501,636 710,818

Transaction with owners of the Company


Contribution and distribution
Interim dividend - 2022 - - - - (1,312,500) (1,312,500)
Total transactions with owners of the Company - - - - (1,312,500) (1,312,500)
Balance as at 31 March 2023 1,062,500 798,004 (3,020,806) 129,733 11,301,811 10,271,242

Profit for the period - - - - 2,336,768 2,336,768

Other comprehensive income for the period


Equity investments at FVOCI - net change in fair value - - 399,844 - - 399,844
Equity investments at FVOCI - net change in fair value - Life fund - - 58,595 - - 58,595
Debt investments at FVOCI - net change in fair value - - 42,577 - - 42,577
Re-measurement Gain on defined benefit liabilities - - - - (20,845) (20,845)
Gain on revaluation of land and building - - - 43,783 - 43,783
Debt investments at FVOCI - net change in fair value - Life fund - - 200,892 - - 200,892
Debt investments at FVOCI - reclassified to income statement - - 490 - - 490
Total other comprehensive income, net of tax - - 702,398 43,783 (20,845) 725,336
Total comprehensive income for the period - - 702,398 43,783 2,315,923 3,062,104
Balance as at 31 December 2023 1,062,500 798,004 (2,318,408) 173,516 13,617,734 13,333,346

Profit for the period - - - - 853,613 853,613

Other comprehensive income for the period


Equity investments at FVOCI - net change in fair value - - (55,427) - - (55,427)
Equity investments at FVOCI - net change in fair value - Life fund - - 37,873 - - 37,873
Debt investments at FVOCI - net change in fair value - - (1,186) - - (1,186)
Re-measurement losses on defined benefit liabilities - - - - - -
Gain on revaluation of land and building - - - - - -
Debt investments at FVOCI - net change in fair value - Life fund - - 4,711 - - 4,711
Debt investments at FVOCI - reclassified to income statement - - - - - -
Total other comprehensive income, net of tax - - (14,029) - - (14,029)
Total comprehensive income for the period - - (14,029) - 853,613 839,584

Transaction with owners of the Company


Contribution and distribution
Interim Dividend - 2023 - - - - (1,406,250) (1,406,250)
Total transaction with owners of the Company - - - - (1,406,250) (1,406,250)
Balance as at 31 March 2024 1,062,500 798,004 (2,332,437) 173,516 13,065,097 12,766,680

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SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF CASH FLOWS

For the Period ended 31 March 2024 2023


Rs. ' 000 Rs. ' 000
Audited Audited

Cash flows from operating activities


Profit before taxation 1,196,172 820,760
Adjustments for :
Depreciation of property, plant and equipment 35,286 31,478
Amortisation of intangible assets 197 170
Depreciation of right of use asset 90,177 73,597
Interest expenses on lease liabilities and loans and borrowings 185,924 185,530
Provision for employee benefit liabilities 13,553 11,843
Net realised Gains (581,700) (39)
Net fair value (Gains)/ losses 427,083 (207,236)
Net unrealised losses on foreign currency transactions 185,575 381,968
Net amortisation of financial investments (262,364) (338,567)
Provision for impairment (Reversal) /losses on financial investments (117,878) 156,114
1,172,025 1,115,618

Change in operating assets


Decrease / (Increase) in loans to life policyholders 2,431 (9,454)
Increase in reinsurance receivables (125,533) (144,311)
Decrease in premium receivables 258,918 203,075
Increase in receivables and other assets (281,445) (155,366)
(145,629) (106,056)

Change in operating liabilities


Increase / (Decrease) in insurance contract liabilities 624,337 (43,938)
Increase in reinsurance payables 206,629 343,180
Increase / (Decrease) in other liabilities 217,162 (255,736)
1,048,128 43,506
Net cash generated from operations 2,074,524 1,053,068
Gratuity paid (7,537) (1,640)
Tax Paid (216,000) (188,614)
Net cash generated from operating activities 1,850,987 862,814

Cash flows from investing activities


Acquisition of investment securities (14,784,111) (13,640,614)
Proceeds from sale of investment securities 14,769,330 14,336,698
Acquisition of property, plant and equipment (45,090) (60,533)
Net Acquisition of ROU Asset (26,386) (36,951)
Net cash flows used in investing activities (86,257) 598,600

Cash flows from financing activities


Dividend paid to equity holders (1,406,250) (1,312,500)
Payment of lease liabilities (97,772) (107,632)
Net cash used in financing activities (1,504,022) (1,420,132)

Net increase / (Decrease) in cash and cash equivalents 260,708 41,282

Net cash and cash equivalents as at 1 January 722,989 431,626


Net cash and cash equivalents as at 31 March 983,697 472,908
Analysis of cash and cash equivalents
Cash in hand and at bank 1,353,313 909,436
Bank overdrafts (369,616) (436,528)
Total cash and cash equivalents as at 31 March 983,697 472,908

Page 6 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF FINANCIAL POSITION-LIFE INSURANCE FUND

As at Note 31.03.2024 31.12.2023


Rs. ' 000 Rs. ' 000
Audited Audited
Assets
Property, plant and equipment 307,814 311,000
Right of use assets 664,822 600,973
Financial investments 32,880,357 33,092,231
Loans to life policyholders 328,870 331,301
Reinsurance receivables 590,744 465,211
Premium receivables 2,190,171 2,449,089
Receivables and other assets 1,291,321 1,063,438
Cash and cash equivalents 1,352,045 1,087,058
Total assets 39,606,144 39,400,301

Equity and liabilities


Equity
Other reserves (814,237) (856,820)
Total equity (814,237) (856,820)

Liabilities
Insurance contract liabilities 11 28,549,811 27,925,474
Employee benefit liabilities 282,317 276,302
Reinsurance payables 909,082 718,855
Income tax liabilities 774,128 927,170
Other liabilities 9,535,427 10,032,630
Bank overdraft 369,616 376,690
Total liabilities 40,420,381 40,257,121
Total equity and liabilities 39,606,144 39,400,301

Page 7 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS

1 REPORTING ENTITY
Softlogic Life Insurance PLC (“the Company”) is a public limited liability company incorporated and domiciled in
Sri Lanka. The Company is regulated under the Insurance Industry Act No. 43 of 2000 and amendments thereto.
The Company was re – registered under the Companies Act No. 07 of 2007 and the registered office is situated at
Level 16, One Galle Face Tower, Colombo - 02. The ordinary shares of the Company have a primary listing on the
CSE.

2 APPROVAL OF FINANCIAL STATEMENTS BY THE BOARD OF DIRECTORS


The interim condensed Financial Statements for the quater ended 31 March 2024 were authorised for issue by the
Board of Directors on 07 May 2024.

3 BASIS OF PREPARATION
The interim condensed Financial Statements for the quater ended 31 March 2024 have been prepared in compliance
with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. These interim condensed Financial
Statements do not include all the information and disclosures required in the Annual Financial Statements, and
should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2023. Further,
the provisions of the Companies Act no.7 of 2007, the Regulation of the Insurance Industry Act No 43 of 2000 and
Colombo Stock Exchange have been considered in preparing these interim condensed Financial Statements. The
same Accounting Policies and methods of computation as stated in the Annual Financial Statements - 2023 have
been followed in preparing these interim condensed Financial Statements.

In preparing these condensed interim financial statements, management has made judgements and estimates that
affect the reported amounts of assets and liabilities, income and expense. Actual results may differ from these
estimates.

The significant judgements made by management in applying the Company’s accounting policies and the key
sources of estimation uncertainty were the same as those described in the last annual Financial statements.

New SLFRS and Interpretations issued but not yet effective have not been early adopted during the period.

4 FAIR VALUE MEASUREMENT AND RELATED FAIR VALUE DISCLOSURES


During the period, there were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3
categories as per the fair value hierarchy. The fair value changes on financial instruments in Level 3 category was
properly recorded in the statement of other comprehensive income. As at the reporting date, fair value would not
significantly change if one or more of the inputs of financial assets classified at level 3 were changed.

5 GROSS WRITTEN PREMIUM

For the Period ended 31 March 2024 2023


Rs. ' 000 Rs. ' 000
Audited Audited
First Year Premium 1,689,279 1,555,822
Renewal Premium 3,694,680 3,154,980
Group Life Premium 1,581,604 1,229,185
Single Premium 197,264 44,631
Total Gross Written Premium 7,162,827 5,984,618

Page 8 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS

6 TOTAL NET REVENUE

For the Period ended 31 March 2024 2023


Rs. ' 000 Rs. ' 000
Audited Audited
Net written premiums 6,527,187 5,345,006
Other Revenue 1,921,272 1,942,428
Total Net Revenue 8,448,459 7,287,434

7 FINANCE COST

For the Period ended 31 March 2024 2023


Rs. ' 000 Rs. ' 000
Audited Audited
Interest expenses on lease liabilities and loans and borrowings (185,924) (185,530)
Net exchange (losses) / gains (185,575) (381,968)
Other finance cost (29,851) (34,638)
Total Finance (Cost) / Gains (401,350) (602,136)

8 PROFIT BEFORE TAXATION


For the Period ended 31 March 2024 2023
Rs. ' 000 Rs. ' 000
Audited Audited

Profit Before Taxation 1,196,172 820,760


Total 1,196,172 820,760
The Company transferred Rs.932 Mn from Non participating fund to shareholder fund as surplus transfer for the quater ended
31 March 2024 (2023- 730 Mn).

9 INCOME TAX EXPENSE


The gains and profits from the Life Insurance Business are ascertained in terms of Section 67 of the Inland Revenue Act No.
24 of 2017. Accordingly, gains and profits on which tax is payable is the aggregate of;

Taxable Income Source Applicable Tax Rate


Surplus distributed to shareholders from the Life Insurance policyholders fund as certified
30%
by the actuary
Investment income of the shareholder fund less any expenses incurred in the production of
30%
such income
Surplus distributed to a Life insurance policyholder who shares the profits of a person
engaged in the business of life insurance 30%

Dividend paid out of profit recorded in shareholder fund are subject to income tax at 15%.

Page 9 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
10 FINANCIAL INVESTMENTS
As at Note 31.03.2024 31.12.2023
Rs. ' 000 Rs. ' 000
Audited Audited
Amortised Cost (AC) 10.1 32,391,521 33,698,659
Fair Value through Other Comprehensive Income (FVOCI) 10.2 5,724,919 5,174,882
Fair Value Through Profit or Loss (FVTPL) 10.3 5,341,337 4,626,674
Total Financial Investments 43,457,777 43,500,215

10.1 Amortised Cost (AC)


Treasury Bonds 18,757,521 18,408,368
Treasury Bills 480,141 553,716
International Sovereign Bonds 3,784,493 3,928,615
Bank Deposits 910,471 919,403
Commercial Papers 1,406,940 1,713,352
Securitized Papers 514,081 577,371
Quoted Debentures 5,967,319 6,251,253
Unquoted Debentures 308,138 301,493
Reverse Repo 262,417 1,045,088
32,391,521 33,698,659
10.2 Fair Value through Other Comprehensive Income (FVOCI)
Equity Securities:
Quoted 2,700,694 1,759,999
Unquoted - 326,914
Treasury Bonds 3,024,225 3,087,969
5,724,919 5,174,882
10.3 Fair Value Through Profit or Loss (FVTPL)
Treasury Bonds 334,268 318,208
Unlisted Perpetual Debenture 773,466 794,476
Unit Trust 4,233,603 3,513,990
5,341,337 4,626,674
11 INSURANCE CONTRACT LIABILITIES
As at Note 31.03.2024 31.12.2023
Rs. ' 000 Rs. ' 000
Audited Audited
Insurance Contract Liabilities 26,702,596 26,145,333
Surplus Created due to Change in Valuation method from NPV to GPV 11.1 & 11.2 1,056,535 1,056,535
Claim Payables 790,680 723,606
28,549,811 27,925,474

Page 10 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS

11.1 Transfer of One-off Surplus from Policyholder Fund to Shareholder Fund


The Insurance Regulatory Commission of Sri Lanka (IRCSL) has issued a Direction No 16 on 20th March 2018 on
“Guidelines/ Directions for Identification and Treatment of One-off Surplus” and has instructed all Life Insurance
Companies to comply with the new Direction. Based on the new guidelines, Life Insurance Companies are directed
to transfer One-off surplus attributable to Policyholder Non-Participating Fund to shareholder fund as at the
reporting year ended 31st December 2017. The transfer has been presented as a separate line item in the Income
Statement as “Change in contract liability due to transfer of One-off surplus” and as a separate reserve in the
Statement of Financial Position as “Restricted Regulatory Reserve” under Equity in accordance with above
Direction. As required by the said Direction, the Company received the approval for this transfer on 29th March
2018.

Further distribution of One-off Surplus to shareholders, held as part of the Restricted Regulatory Reserve, is subject
to meeting governance requirements stipulated by the IRCSL and can only be released as dividends upon receiving
approval from the IRCSL. The One-off Surplus in the shareholder fund will remain invested in government debt
securities and deposits as disclosed in Note 11.2 as per the Directions of the IRCSL”.

One-off surplus in respect of participating business is held within the participating fund as part of the unallocated
valuation surplus and may only be transferred to the shareholder fund by means of bonuses to policyholders in line
with Section 38 of the “Regulation of Insurance Industry Act.

Movement of One-off Surplus After Transfer Participating Non- Total


Fund Participating
Fund
Rs. ' 000 Rs. ' 000 Rs. ' 000
Value of Insurance Contract Liability based on Independent
3,866,780 2,472,575 6,339,355
Actuary-NPV as at 31st December 2015
Value of Insurance Contract Liability based on Independent
st 2,810,245 1,674,571 4,484,816
Actuary-GPV as at 31 December 2015
Surplus Created due to Change in Valuation method
st
from NPV to GPV- One off Surplus as at 1 January 1,056,535 798,004 1,854,539
2016
Transfer of One-off Surplus from long term fund to
- (798,004) (798,004)
Restricted Regulatory Reserve.
Surplus created due to Change in Valuation Method -
1,056,535 - 1,056,535
One-off Surplus as at 31 December 2023

The distribution of One-off surplus to Shareholders as dividends shall remain restricted until the Company develops
appropriate policies and procedures for effective management of its business.

Page 11 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS

11.2 Composition of Investments Supporting the Restricted Regulatory Reserve as at 31 March 2024
Asset Category ISIN No As at 31 March 2024
Face Value Market Value
Rs. Rs. ' 000
Government Securities
Treasury Bond LKB00628A153 100,000,000 120,890
LKB00628A153 110,000,000 132,979
LKB00628A153 100,000,000 120,890
LKB00628A153 100,000,000 120,890
LKB00931E153 100,000,000 130,273
LKB00931E153 100,000,000 130,273
LKB00931E153 120,000,000 156,327
LKB00931E153 100,000,000 130,273
LKB00931E153 100,000,000 130,273
LKB00931E153 100,000,000 130,273
Total Market Value of the Assets 1,303,341
Restricted Regulatory Reserve 798,004

11.3 Valuation of Life Insurance Fund -(Zeroed Basis of Negative Liabilities at Product Level) as at 31 March 2024

The valuation of life insurance fund as at 31 March 2024 was made by Appointed Actuary Mr. Kunj Behari
Maheshwari, FIA, FIAI, of Messrs. Willis Towers Watson India Private Limited, who approved to transfer from Non-
Participating Life Insurance fund / insurance contract liabilities to the Shareholders fund as surplus transfer as
disclosed below.

For the quarter ended 31 March 2024 – Rs.932 Mn (2023 - 730 Mn)

11.4 Liability Adequacy Test (LAT) - Life Insurance Contract Liabilities


Liability Adequacy Test (LAT) in respect of the Insurance Contract Liabilities as required by SLFRS 4 - Insurance
Contracts are carried out annually.

Page 12 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS

12 CAPITAL COMMITMENTS AND CONTINGENCIES


12.1 Capital Commitments
The capital commitments approved and contracted as at the reporting date were Rs. 2.97 million.
12.2 Contingencies
The Contingent liabilities of the company as at 31 March 2024, relates to the followings;

Assessment in Respect of Value Added Tax (VAT)

1)VAT assessments have been issued by the Department of Inland Revenue for the taxable period 2010 and was
determined by the Tax Appeal Commission (TAC) on 22nd August 2019. Out of total 11 assessments, 08 assessments
were determined in favor of Commissioner General of Inland Revenue (CGIR) amounting to Rs. 46.5 Million
including the penalty and 03 assessments were determined in favour of Softlogic Life Insurance PLC amounting to Rs.
24.8 Million including the penalty.

The Company transmitted the former case to the Court of Appeal being dissatisfied with the determination which
determined in favour of the CGIR and case is stated for the opinion of the Honorable Court of Appeal. The Total tax
exposure of this appeal is Rs. 46.5 million including the penalty.

The CGIR, transmitted the latter case to the Court of Appeal being dissatisfied with the determination which
determined in favour of Softlogic Life Insurance PLC and case is stated for the opinion of the Honorable Court of
Appeal.

Assessment in Respect of Value Added Tax on Financial Services (VAT on FS)


2) The CGIR issued its determination on the appeal filed by the Company relating to the assessment raised for Y/A
2014/15, 2016/17 and 2017/18 under the Value Added Tax Act amounting to Rs. 68.7 Million, Rs. 28.0 Million and
Rs. 102.4 Million respectively, in favour of the CGIR. The Company is in the process of hearing the appeals with Tax
Appeals Commission, on the basis that the underlying computation includes items which are out of scope of the VAT
Act.

3) Assessments have been issued for the Company under the Value Added Tax Act, in relation to the Y/A 2018/19
and 2019/20 amounting to Rs. 72.6 Million and 147.7 Million respectively. Determination of the CGIR in relation to
2018/19 has stated that the assessment has been annulled. Further, the company has appealed for the assessment issued
for the Y/A 2019/20 on the basis that the underlying computation includes items which are out of scope of the VAT
Act and is awaiting the CGIR determination.

Economic Service Charge (ESC)


4) An assessment has been issued by the Department of Inland Revenue under the Economic Service Charge Act, in
relation to the taxable period ending 31 December 2017 amounting to Rs. 7.3 Million. The CGIR has informed the
Company that the tax due under the Finance Act has been written off.

Page 13 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
12 CAPITAL COMMITMENTS AND CONTINGENCIES (Cont.)
12.2 Contingencies (Cont.)
Assessment in Respect of Nation Building Tax on Financial Services (NBT on FS)
5) An assessment has been issued under the Nation Building Tax Act, in relation to the Y/A 2018/19 amounting to Rs. 9.7
Million. The Company has filed an appeal to the CGIR on the basis that the underlying computation includes items which
are out of scope of the NBT Act. The Company is awaiting the CGIR's determination.

6) An assessment has been issued by the Department of Inland Revenue under the Nation Building Tax, in relation to the
Y/A 2019/20 amounting Rs. 18 Million including penalty. According to the determination received by the CGIR, the tax
due has been discharged.

Life Insurance Taxation


7) The Tax Appeals Commission issued its determination on the appeal filed by the Company relating to the assessment
raised for the Y/A 2010/11 amounting to Rs. 0.68 Million, in favour of the Softlogic Life Insurance PLC and the CGIR has
transmitted this case to the Court of Appeal being dissatisfied with the said determination of Tax Appeals Commission and
case is stated for the opinion of the Honorable Court of Appeal. The Company is awaiting the decision of the Court of
appeal.

8)The Tax Appeals Commission issued its determination on the appeal filed by the Company relating to the assessment
raised for the Y/A 2011/12 and 2012/13 amounting to Rs.10.1 Million and Rs. 12.4 Million respectively, in favour of
CGIR and The Company has transmitted this case to the Court of Appeal being dissatisfied with the said determination of
Tax Appeals Commission and case is stated for the opinion of the Honorable Court of Appeal. The Company is awaiting
the decision of the Court of appeal.

9) The CGIR issued its determination on the appeal filed by the Company relating to the assessment raised for the Y/A
2014/15, 2015/16, 2016/17 and 2017/18 amounting to Rs. 681.7 Million along with penalty, in favour of the CGIR. For
the Y/A 2014/15 and 2017/18, the Company has received the determination of the Tax Appeals Commission in favour of
the Company. The Company is in the process of hearing the appeals with Tax Appeals Commission for the Y/A 2015/16
and 2016/17.

10) An assessment has been issued under the Income Tax Act by the Department of Inland Revenue in relation to the Y/A
2018/19 and 2020/21, amounting to Rs. 533.4 Million and 931.2 Million respectively including penalty and interest. The
Company has filed appeals to the CGIR and awaiting the CGIR determination.

11)The CGIR issued its determination on the appeal filed by the Company relating to the assessment raised for the Y/A
2019/20 amounting to Rs. 1,114 Million along with penalty, in favour of the CGIR. The Company has submitted a petition
of appeal with Tax Appeals Commission.

12) The Company has received an Assessment on PAYE Tax for the Y/A 2016/17 amounting to Rs. 0.9 Million along with
penalty for which company has submitted an appeal.

Directors are of the view that it has followed due process and acted in accordance with the prevailing laws in its tax
submission and therefore, the probability of company having to settle any of this tax assessments are very low. In addition,
there are no litigations and claims involving the Company that may have a material effect on the financial statements in the
Directors' view.

Page 14 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
13 EVENTS AFTER THE REPORTING PERIOD
No circumstances have arisen since the reporting date which would require adjustments or disclosure in the Interim
Financial Statements.

14 COMPARATIVE INFORMATION
The presentation and classification in the financial statements are amended where appropriate to ensure
comparability with the current period.

15 SHARE INFORMATION
15.1 Net Assets Per Share

As at 31.03.2024 31.12.2023
Rs. Rs.

Net Assets Per Share 34.04 35.56


Net Asset per Share - Excluding One-off Surplus 31.92 33.43

15.2 Market Price Per Share

For the quarter ended 31 December 2024 2023


Rs Rs
Last traded price (Last trade date - 28th March 2024) 66.10 84.40
Highest traded price per share for the quarter 68.70 136.00
Lowest traded price per share for the quarter 52.30 82.00

16 STATED CAPITAL

As at 31.03.2024 31.12.2023
Stated Capital (Rs.' 000) 1,062,500 1,062,500

No: of Ordinary Shares 375,000,000 375,000,000

17 BASIC AND DILUTED EARNING PER SHARE (EPS)

For the Period ended 31 March 2024 2023


Profit attributable to Ordinary Shareholders (Rs. 000) 853,613 501,636
Weighted Average No: of shares as at 31 March 375,000,000 375,000,000
Basic / Diluted EPS (Rs.) 2.28 1.34

Page 15 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
18 TWENTY LARGEST SHAREHOLDERS
Name of Shareholder 31.03.2024
No. of Shares %
1 Softlogic Capital PLC 193,945,760 51.72
3 Dalvik Inclusion Private Limited 71,250,000 19.00
2 Milford Ceylon (Pvt) Ltd 71,250,000 19.00
4 Commercial Bank Of Ceylon PLC/W. Jinadasa 1,231,734 0.26
5 Mr. G.C. Goonetilleke 979,765 0.26
6 Seylan Bank PLC/Eagle Crest (pvt) Ltd 848,555 0.23
7 Senkadagala Finance PLC/Mr. L.A.J.F. Morais 795,328 0.21
8 People's Leasing & Finance PLC/Mrs.H.A.J.Wickramasena 729,700 0.19
9 Mrs. H.N.R Bharati 625,000 0.17
10 Emfi Capital Limited 565,073 0.15
11 Mr. A.P.P.M. Abeyrathne 519,647 0.14
12 Mr. J.M.I. Jayaweera 388,427 0.10
13 Hatton National Bank PLC A/C No. 4 (HNB retirement pension fund) 380,102 0.10
14 Assetline Finance Limited/R.S.P.Samaranayake 374,991 0.10
15 Mr. W.A.A.T.M. Jayawickrama 373,070 0.10
16 Mr. J.A.D.K.R. Jayasuriya 371,616 0.10
17 Mr. M.K. De Livera 370,003 0.10
18 Dialog Finance PLC/D.S.Nakandala 356,760 0.10
19 Mr. P. Muthulingam 352,708 0.09
20 Maskeliya Tea Exports (Pvt) Ltd 300,000 0.08
346,008,239 92.2
Others 28,991,761 7.80
Total 375,000,000 100.00

19 PUBLIC SHAREHOLDING
The percentage of shares held by the public,the number of public shareholders and the float adjusted market
capitalization are as given below:
As at 2024 2023
Rs Rs
Public shareholding (%)-Compliant under Option 1 of CSE listing Rule 7.13.1.b 10.23 10.23
Public shareholders . 4,814 4,903
Float Adjusted Market Capitalisation (Rs.' 000) 2,535,761 2,063,903

Public Holding percentage - Ordinary Non-Voting Shares as at 31 March 2024 - Nil

20 DIRECTORS’ SHARE HOLDINGS


As at 31 March 2024
Name of The Director No. of Shares %
Mr. A.K. Pathirage (Chairman) Nil Nil
Mr. T.M.I. Ahamed (Managing Director / CEO) Nil Nil
Mr. H.K. Kaimal - Director Nil Nil
Ms. Fernanda Lima - Director Nil Nil
Mr.V. Govindasamy - Director Nil Nil
Mr. R. Snyders - Director Nil Nil
Mr. P.L.P. Withana - Director Nil Nil
Mr. S.W. Mohottala - Director Nil Nil

Page 16 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS

21 RELATED PARTY DISCLOSURES


The nature of the related parties in the current period and terms and conditions of transactions with related parties are
similar to those reported in the audited Financial Statements for the year ended 31 December 2023.

21.1 Transactions with Key Management Personnel of the Company or its parent
According to Sri Lanka Accounting Standard (LKAS) 24 Related Party Disclosure, Key Management Personnel (KMP) are
those having authority and responsibility for planning, directing and controlling the activities of the entity. Accordingly, the
Directors (including Executive and Non-Executive Directors) and their immediate family members have been classified as
Key Management Personnel of the Company.

Immediate family member is defined as spouse or dependent. A dependent is defined as anyone who depends on the
respective KMP for his/her financial needs.

For the Period ended 31 March 2024 2023


Rs.' 000 Rs.' 000
Transactions with the Ultimate Parent and Parent
Investments 506,462 514,591
Receiving of services 85,422 50,136
Expenses 1,192 708
Dividend Paid 727,955 679,425
Interest Income 20,080 37,358
Net Premiums 2,802 264
Insurance premium receivable 127 11,111

Transactions with Other Related Entities


Investments 463,344 494,793
Purchases of property plant and equipment - 12,225
Expenses 127,512 68,331
Net Premiums 31,698 4,965
Insurance premium receivable 40,927 212,995

Page 17 of 17

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