Operating Results of the Company
Back to progression and improving returns our performance in the second half of the year ended, gives us confidence that we are on track to achieve our strategic and financial objectives. To be adapt with the market conditions although the Company allowed its credit book to reduce by over 13% with curtailed lending on top of the strong recoveries, yet the bottom line of the company recorded significant improvements. During the FY 21/22 the Total Assets declined from Rs.1.25 Bn to Rs.1.09 Bn, a decrease of Rs.158.61 Mn or 12.67 in percentage. The interest earning assets recorded a reduction of Rs.140 Mn or by 12.68% compared to the previous year. Nevertheless on top of the above decline, proving the strategy adapted became a success the Company’s Net Interest grew from 100.29 Mn to Rs.107.18 Mn over the FY 21/22.
As at end of the year although the market conditions were otherwise CLCL was able to maintain a Net Interest Margin of 11.13 %, compared to 9.09 % in previous year. Having indicated strongly of Company’s ability to manage the interest rate risks in the current market, the Company also has been able to lower its dependence on interest income commendably during the year by improving its Non-Interest Income base. The earnings from Non-Interest Income grew from Rs.20.30 Mn to 28.78 Mn and the Non-Interest Income to Gross Income ratio grew from 9.85 % to 17.27 % over the year.
In CLCL’S journey of 20years the previous year was one of the toughest years to experience. However today we proud to state that your Company has re-gained its stability and now well positioned to begin a new journey with your support. The Company recorded a Profit Before Tax of Rs.78.69 Mn in FY 21/22 and Profit After Tax of Rs.50.74 Mn compared to a loss of Rs.81.43 Mn and Rs.86.88 Mn respectively in FY 20/21.
Rebuilding the shareholders interest and confidence the Company was able to end the year by increasing its shareholders funds from Rs.680.73 to Rs. 731.93 Mn and the value of Net Assets per Share from Rs.13.31 to Rs.14.31. The earnings per share grew to Rs.0.99 per share from previous years negative earnings.
Way forward and appreciation
Today with beginning of the Financial Year 2022/23 the Co-operative Leasing Company Ltd has to decide its future way forward as to the Consolidation Masterplan of the NBFI sector. However with making of a strong comeback today your Company has been placed at a position to take up any challenges within the industry. The low gearing and the Core Capital ratio of 42%, compared to the minimum requirement of 5 % is an indicator of such ability. Hence the Team of CLCL would ambitiously look forward to realize more and more value to all of its stakeholders in the coming years.
Although the financials of CLCL revived positively during the year, the Company faced few unbearable events also within the year especially due to Covid-19 outbreak. The demise of former Chairman of the Company Mr. Kingsly Paul is specially to mention here with heartfelt condolences.
Facing with numerous challenges during the year, as the major shareholder the continuous support given by the Board of Directors and the Management of Wayamba Co-operative Rural Bank Union Ltd, would like to appreciate at first. By participating at important events and arranging many facilities during the lock down periods we would like to convey our special regards to Chairman and the Staff of the National Co-operative Council of Sri Lanka.
As we conclude a financial year with an admirable achievement ending 31 March 2022, we would like to express our appreciation to the Governor, Director of NBFI and his team at the Central Bank of Sri Lanka.
The invaluable guidance and corporation given by the External Auditor Ms. B R De Silva & Company is too highly appreciated here by the Board of Directors and the Management of the Company. We would like also mention very gratefully the hand in hand support given by our Internal Auditors and Secretaries Mathew & Co.
CLCL team would like to extend its special regards also to the officers and advisories at Ministry & Department for Co-operative Development at North Western Province for their contribution given towards the Company and its shareholders.
Co-operative Leasing Company not have been able to achieve this success and pave the path for future growth without the commitment and support of the Board of Directors, the employees, shareholders and customers. For realizing our overall objectives once again we are very thankful to all of the Board Members and advisories and Senior Management of CLCL and all other employees, contributed tirelessly throughout the year.
We look forward to further success along the path of CLCL’s dynamic and transformational journey in the years to come.
CEO FORMER CHAIRMEN PRESENT CHAIRMAN