INTRODUCTION * LANKA ORIX FINANCE is a one of the leading financial solution provider in Srilanka.It’s a Licensed Finance Company and part of the diversified LOLC group of companies, which was listed on the Colombo Stock Exchange in June 2011.And backed by the strength of one of the global financial giant “ORIX CORPORATION JAPAN”.

* Mr. Kapila Jayewardena was the chairman of the company. And he has appointed as a chairman in 2007 April.Mr.Ishara Nanayakkara was the deputy chairman of the company. And he has appointed as a Deputy Chairman in November 2002.Mr.Brindley de zylva was the CEO of the company and he has appointed as a CEO in April 2003.

* LOFC is the only non-bank financial institution to have been granted a license from CBSL to engage in foreign currency business. This enabled LOFC to maintain nonresident foreign currency accounts Resident foreign currency accounts and special foreign investment deposit accounts for their customers.

* LOFC is offering savings, Deposits & working capital facilities. The Growth and Diversification have led the company to start the areas such as Auto Finance, ME Finance, Islamic Banking, mobile banking and foreign currency business.

* LOFC services are offered through a network of 42 fully fledged branches 10 savings centers strategically located island wide, including a significant presence in the North and the East.

* They have several partnerships with business entities such as MAESTRO, IFAD, XPRESS MONEY, COMMERCIAL BANK, MONEY EXCHANGE for over the years. These alliances have helped them to create new possibilities for their customer’s future, ensuring cutting-edge solutions and technologies for customer’s convenience.

(Reference: http://www.lankaorix.com/aboutus)

Task 1
Vision, Mission, objectives and values of the organization are brought into play in order to give direction to the organization activities. Therefore to get the correct pathway to achieve their targets LOFC also has their Vision, Mission, Objectives and values.
Vision
Vision refers to the organization’s future. The vision statement is an inspiration, the framework for all the strategic planning. The Vision statement of the company mainly focuses on the potential inherent in the company’s future, or what they intend to be. It contains references to how the company intends to make that future into a reality, the vision statement is simply a description of the “what”, meaning, what the company intends to become.
LOFC’S Vision
“We believe in an inclusive financial services that requires client advocacy and stewardship, a passion for leading edge solutions and the delivery of services that exceed customer expectations.”
The above mentioned Vision statement simply reveals that what LOLC wants to become.
According to their Chairman’s review LOLC is stable in providing Proactive fund management, consistent financial stability, dedicated management, coupled with the strategically positioned branch network. So These strengths are more valuable to gain investor confidence even in volatile market conditions. LOFC has ended the 2011/2012 financial year as one of the largest deposit taking institutions in the country, with a deposit base RS.25.1 Bn. The unique channel mechanism has contributed towards deposit growth.
With the end of conflict LOLC has embarked on a dedicated expansion drive in the North and East, to facilitate conflict recovery and to increase LOFC’s presence and market share. This rapid response to the needs of the people of the North and East has generated first mover advantages, giving LOFC an edge over the intensifying financial sector competition in these regions. During the year, the LOFC service network in the North and East was expanded from 8 service points to 25. LOFC’s presence in regional economies in other parts of the country too, has been strengthened during the year. So they are working towards the customer expectations to achieve the company Vision.
Al Falaah – the Islamic Business Unit (IBU) of LOLC that operates under your company completed a phenomenal year, with a profit before tax of Rs. 237 million and a portfolio increase of 34%. It is heartening to note the consistent performance of Al Falaah that vindicates the goals and strategies we had developed for the IBU to grow its business, by promoting the concept of Islamic financing across the length and breadth of Sri Lanka. In this connection, your company initiated a special market penetration programme where it opened a number of branches dedicated towards Islamic financing. As part of this expansion programme, IBU branches were opened in Akurana, Kattankudy, Kalmunai and Oddamavadi during the year under review.
LOLC‘s Al –Falah the Islamic business unit has completed a phenomenal year with a profit before Tax of Rs 237 Million and a portfolio increase of 34%.So the consistent performance of Alfalaah that vindicates the innovative thinking to achieve their vision.
So LOLC’s vision is appropriate and it’s achievable too.

Mission
A mission statement is a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?" Reference (http://sbinfocanada.about.com/od/businessplanning/g/missionstatemen.htm)
The mission statement reveals the company's purpose both for those in the organization and for the public.
LOFC’s Mission
“Our mission is to help set the industry standard in Non-Bank Financial Services. We reach out to all Small and Medium Enterprises and provide them with affordable and convenient Financial Services tailored to their specific needs.”
LOFC’s 2011/2012 annual report reveals that LOFC has now been positioned as a key provider of agriculture credit and SME financing for Sri Lanka’s regional economies, including the emerging North and East. And the Company has been able to show strong overall performance during the year of 2012.Providing agriculture credit and SME financing for rural area Entrepreneurs is an asset for them. So LOFC is trying to give maximum support on Short and medium enterprises.
ICRA Lanka, an associate of the international rating agency Moody’s Investor Services has awarded LOFC with an investment grade A- rating with a stable outlook, confirming the company’s strong fundamentals, sound financial management and overall stability. “A” rating is a core factor for LOFC to reveal their standard is equal to banking sector.
Last year LOLC has started Islamic banking, And they have completed phenomenal year with a good profit. It helps a lot for Muslim people to communicate and to complete their needs. So it reveals their financial services are tailored to customer’s specific needs.
So LOFC is going in the correct path to achieve their Mission. Also the mission is appropriate to the company.

Your company’s enhanced visibility in emerging regional economies are beginning to generate encouraging results. In addition, the unique combination of stringent credit appraisal and flexible collection mechanisms are reflected in the Non- Performing Loans (NPL), as your company records one of the lowest NPL ratios in the industry. Proactive fund management, consistent financial stability, dedicated management, coupled with the strategically positioned branch network has led your company to gain investor confidence even in volatile market conditions. Thus, LOFC ended the year as one of the largest deposit taking institutions in the country, with a deposit base of Rs. 25.1 Bn. The unique channel mechanism has contributed towards deposit growth.

Despite a sluggish global economy, Sri Lanka’s economy maintained strong growth during the financial year 2011/12, supported by a low interest rate regime and single digit inflation during the first half of the year. The vigorous domestic growth was spearheaded by the sectors of financial services, leisure, construction and agriculture. By end 2011, Sri Lanka reported a GDP rate that was the highest since independence, at 8.3%, supported by an agriculture sector growth of 1.5%, industry growth of 10.3%, and services growth of 8.6%.The ‘Construction’ sub sector recorded a 14.2% expansion while ‘Hotels and Restaurants’ grew by 26.4%. The ‘Banking, Insurance, and Real Estate’ sector grew by 7.9%. Your Company was well placed to take advantage of this robust economic growth due to a strategic re-positioning. As part of an operational strategy re-alignment, During the financial year under review the total amount of deposits increased by 44%, out of which, deposits under the Islamic Business Unit constituted 14% of total deposits. Meanwhile, Company revenues increased by 37% to Rs. 6.3 Bn, from the previous financial year, while Profit before taxincreased by 20% to Rs. 1.8 Bn, from Rs. 1.5 Bn. Profit after tax remained at Rs. 1.2 Bn.
Al Falaah – the Islamic Business Unit (IBU) of LOLC that operates under your company completed a phenomenal year, with a profit before tax of Rs. 237 million and a portfolio increase of 34%. It is heartening to note the consistent performance of Al Falaah that vindicates the goals and strategies we had developed for the IBU to grow its business, by promoting the concept of Islamic financing across the length and breadth of Sri Lanka. In this connection, your company initiated a special market penetration programme where it opened a number of branches dedicated towards Islamic financing. As part of this expansion programme, IBU branches were opened in Akurana, Kattankudy, Kalmunai and Oddamavadi during the year under review.
Another significant contributory factor towards overall operational success has been the corporate strategy to diversify LOFC’s business portfolio into the foreign exchange market. LOFC is the only finance company in the country thus far authorised by the Central Bank of Sri Lanka to offer foreign currency services. Foreign currency deposits increased by 173% to Rs. 2 Bn during the year under review and accounted for 8% of the total deposit base. Our other unique approval is being the only finance company in Sri Lanka to access the interbank swap market. This approval has largely facilitated our foreign funding as we do not maintain an open position.
Reinstating the sustainable performance of the Company, ICRA Lanka, an associate of the international rating agency Moody’s Investor Services, awarded LOFC with an investment grade A- rating with a stable outlook, confirming the company’s strong fundamentals, sound financial management and overall stability.

Future forecast
We expect to sustain our growth momentum in the new financial year, while being cognizant of the impacts of rising interest rates coupled with rising inflation. We will also remain watchful of developments in European markets that may have an impact on the Sri Lankan economy. As LOFC’s main orientation is towards domestic SMEs and rural financing, we do not expect external global occurrences to have a material impact on our operations. Nevertheless, we will remain alert to any domestic spill over effects stemming from global economic developments.
We will continue our endeavour to further penetrate Sri Lanka’s deep rural markets, including key locations in the North, such as Mannar and Mullaitivu. Appreciations I would like to extend my appreciation to the Board of Directors for their unfailing support and guidance throughout the year and the management and staff of LOFC for their invaluable contributions in driving the company towards success. Mr W D K Jayawardena Chairman/Non Executive Director.