The specific principles, bases, conventions, rules and practices adopted by an entity in preparing and presenting financial statements.
Recognising the effects of transactions and other events as and when they occur without waiting for receipt or payment of cash or its equivalent.
The systematic allocation of the depreciable amount of an intangible asset over its useful life.
An entity in which the investor has significant influence and which is neither a subsidiary nor an interest in a joint venture.
Non derivative financial assets that are designated as available for sale or are not classified as (a) loans and receivables, (b) held to maturity investments or (c) financial assets at fair value through profit or loss.
The relationship between capital and risk-weighted assets as prescribed by Central Bank of Sri Lanka.
Short-term, highly liquid investments those are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Impairment assessment on a collective basis for homogeneous groups of loans and receivables that are not considered individually significant and to cover losses which have been incurred but have not yet been identified at the reporting date.
An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities, which are debt, is usually issued at a discount, reflecting prevailing interest rates.
Credit facilities approved but not yet utilised by the customers as at the reporting date
Financial statements of a holding (Parent) company and its subsidiaries based on their combined assets, liabilities and operating results.
A condition or situation existing on the reporting date where the outcome will be confirmed only by occurrence or non-occurrence of one or more future events.
The process by which corporate entities are governed. It is concerned with the way in which power is exercised over the way in which power is exercised over the management and direction of entity, the supervision of executive actions and accountability to owners and others.
Total operating expenses as a percentage of total operating income.
An evaluation of a corporate’s ability to repay its obligations or the likelihood of not defaulting, carried out by an independent rating agency.
Credit risk is the potential that a borrower or counterparty will fail to meet its obligations in accordance with agreed terms and conditions.
The simultaneous purchase of an amount of a currency for spot settlement and the sale of the same amount of the same currency for forward settlement.
Money deposited by account holders. Such funds are recorded as liabilities.
Sum set aside for tax in the Financial Statements that may become payable/receivable in a financial year other than the current financial year.
The systematic allocation of the depreciable amount of an asset over its useful.
The removal of a previously recognised financial asset or financial liability from an entity’s statement of financial position.
Profit attributable to shareholders divided by dividends paid to ordinary shareholders including tax withheld. This ratio measures the number of times dividend is covered by current year’s attributable profits.
Dividend earned per share as a percentage of its market value.
Profit attributable to ordinary shareholders divided by the number of ordinary shares in use.
A measure of productivity, that takes into consideration cost of total invested equity.
Income tax expense divided by the profit before tax
Represents the number of employees retained out of the employees attrition during the year as a percentage of average number of employees for the year end
Method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition changes in the investor’s share of net assets of the investee. The profit or loss and other comprehensive income of the investor include the investor’s share of the profit or loss and other comprehensive income of the investee.
A claim, contingent claim or position which carries a risk of financial loss.
The price that would be received to sell an asset or paid to transfer in an orderly transaction between market participation at the measurement date.
A lease in which, the lessee acquires all the financial benefits and risks attaching to ownership of the asset under leased.
Any asset that is cash, an equity instrument of another entity or a contractual right to receive cash or another financial asset from another entity.
Is a contractual obligation to deliver cash or another financial asset to another entity.
Agreement between two parties to exchange one currency for another at a future date at a rate agreed upon today.
Long term borrowings divided by the total funds available for shareholders.
A group is a parent and all its subsidiaries.
The portion of profits distributed to the shareholders including the tax withheld.
Three party agreement involving a promise by one party (the guarantor) to fulfill the obligations of a person owing a debt if that person fails to perform.
A strategy under which transactions are effected with the aim of providing cover against the risk of unfavorable price movements (interest rates, prices and commodities etc.).
Non-derivative financial assets with fixed or determinable payments and a fixed maturity that an entity has the positive intention and ability to hold to maturity.
A contract between hirer and financier where the hirer takes on hire a particular article from the financier, with the option to purchase the article at the conclusion of the agreed rental payments.
Loans and receivables where the Group does not expect to collect all the contractual cash flows or expect to collect them later than they are contractually due.
This occurs when recoverable amount of an asset is less than its carrying amount.
Provisions held as a result of the raising of a charge against profit for the incurred loss. An impairment provision may either be identified or unidentified and individual (specific) or collective (portfolio).
Exposure to loss is assessed on all individually significant accounts that do not qualify for collective assessment.
An identifiable non-monetary asset without physical substance.
Number of times interest expense is covered by earnings before interest and tax.
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rates.
This represents the difference between the average interest rate earned and the average interest rate paid on interest-bearing liabilities.
a property (land or a building – or part of a building – or both) held (by the owner or by lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for use or sale.
those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly.
Assets held in cash or in a form that can be converted to cash readily, such as shirt term deposits with banks, bills of exchange and treasury bills.
The risk that an entity will encounter difficulty in meeting short term obligations associated with financial liabilities.
The actual loss that is experienced by the company when a customer defaults on a loan from that company.
Total market value of a company’s outstanding shares.
The relative significance of a transaction or an event the omission or misstatement of which could influence the economic decisions of users of Financial Statements.
Shareholders’ fund excluding preference shares if any, divided by the number of ordinary shares in issue.
The difference between income earned from interest bearing assets and cost incurred on financial instrument/ facilities used for funding the interest bearing assets.
Net interest income expressed as a percentage of average interest earning assets.
The aggregate value of the advances portfolio that has being delinquent for a period of more than six months.
Non-performing advances, portfolio expressed as a percentage of total advance portfolio.
A parent is an entity which has one or more subsidiaries.
Shows what the marker is willing to pay for a stock based on its current earnings.
Parties where one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions, directly or indirectly.
Profit before tax expressed as a percentage of the average assets; indicates overall effectiveness in generating profits with available assets.
Net profit attributable to owners, expressed as percentage of average ordinary shareholders’ equity.
A reverse repurchase agreement with the agreement to sell at a higher price at a specific future date.
Sum total of assets as per the Statement of Financial Position and the credit equivalent of assets that are not on the statement of financial position multiplied by the relevant risk weighting factors prescribed by the Central Bank of Sri Lanka.
Disclosure of Company’s assets, income and other information; broken down by activity and geographical area.
Consist of issued and fully paid up ordinary shares, redeemable preference shares and other reserves.
Represents the number of employees attrition during the year as a percentage of average number of employees for the year end.
A capital reserve created as per the provisions of Finance Companies (Capital Funds) Direction No 1 of 2003.
An entity that is controlled by another entity which is known as the Parent.
representing permanent shareholders’ equity and reserves created or increased by appropriations of retained earnings or other surpluses.
representing general provisions and other capital instruments which combine certain characteristics of equity and debt such as hybrid capital instruments and subordinated term debts.
Value of wealth created by providing financial and other related services less the cost of providing such services.
Rate of return on an investment in percentage terms, taking in to account annual income and any change in capital value.