Asian Alliance Quarter report 30-09-2024
Asian Alliance Quarter report 30-09-2024
Asian Alliance Quarter report 30-09-2024
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
Page 2 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
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
Page 3 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF FINANCIAL POSITION
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
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
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
Page 4 of 17
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
Page 5 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF CASH FLOWS
Page 6 of 17
SOFTLOGIC LIFE INSURANCE PLC
STATEMENT OF FINANCIAL POSITION-LIFE INSURANCE FUND
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.
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.
Page 8 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
7 FINANCE COST
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
Page 10 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
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.
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)
Page 12 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
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.
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.
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.
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.
16 STATED CAPITAL
As at 31.03.2024 31.12.2023
Stated Capital (Rs.' 000) 1,062,500 1,062,500
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
Page 16 of 17
SOFTLOGIC LIFE INSURANCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
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.
Page 17 of 17