LANKEM CEYLON PLC. Company No. PQ 128 INTERIM FINANCIAL STATEMENTS

Transcription

1 INTERIM FINANCIAL STATEMENTS For The Year Ended 31 st March 2018

2 Unaudited Audited Unaudited Audited Quarter Quarter Variance Year Year Variance ended ended % ended ended % Revenue 5,297,972 \ \ 4,994, ,488,517 17,261, Cost of Sales (4,407,655) (4,115,169) - 7 (15,101,814) (13,775,960) - 10 Gross Profit 890, , ,386,703 3,485,247-3 Other Income 341,357 24, , , , Distribution Costs (318,867) (265,110) - 20 (1,269,461) (1,356,374) + 6 Administration Expenses (345,944) (426,334) + 19 (1,728,257) (1,801,510) + 4 Other Expenses (40,464) (80,313) + 50 (40,464) (80,313) + 50 Share of Profit/ (Loss) of Associates (147,486) 64, (54,524) (75,280) + 28 Net Finance Cost (300,280) (257,451) - 17 (1,218,004) (957,279) - 27 Profit / (Loss) before Tax 78,634 (61,423) (284,349) (613,132) + 54 Tax Expense (43,631) (148) - 29,380 (133,762) (118,332) - 13 Profit / (Loss) for the Period 35,003 (61,571) (418,111) (731,464) + 43 Other Comprehensive Income Net Gain / (Loss) on Financial Assets Available for Sale 7,861 (1,763) ,680 (1,568) + 1,100 Available for Sale Financial Asset - Reclassified to Profit or Loss (1,339) (13,710) Actuarial Gain / (Loss) on Defined Benefit Obligations (79,369) 47, (75,892) 48, Tax Effect on Actuarial Gain or loss 13,889 (9,283) ,889 (9,283) Other Comprehensive Income for the period, net of Tax (58,958) 36, (60,033) 37, Total Comprehensive Income / (Expense) (23,954) (25,382) + (6) (478,144) (694,080) + 31 Profit Attributable to Owners of the Company (53,751) (107,658) + 50 (535,866) (789,736) ,970 Non-controlling Interests 88,755 46, ,755 58, ,003 (61,571) (418,111) (731,464) + 43 Total Comprehensive Income Attributable to STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSOLIDATED Owners of the Company (99,512) (78,539) - 27 (583,876) (759,855) + 23 Non-controlling Interests 75,558 53, ,732 65, (23,954) (25,382) + (6) (478,144) (694,080) + 31 Earnings/ (Loss) per Share (Rs.) (2.04) (4.49) + 55 (20.34) (32.91) + 38 Diluted Earnings/ (Loss) per Share (Rs.) (2.35) (5.52) + 57 (23.38) (40.48) + 42 Lankem Ceylon PLC 2/9

3 Unaudited Audited Unaudited Audited Quarter Quarter Variance Year Year Variance ended ended % ended ended % Revenue 994,802 1,174, ,204,150 4,577,590-8 Cost of Sales (845,996) (1,035,408) + 18 (3,471,902) (3,798,786) + 9 Gross Profit 148, , , ,804-6 Other Income 330,718 12, , , , Distribution Costs (131,943) (89,047) - 48 (536,598) (604,691) + 11 Administration Expenses (87,072) (94,148) + 8 (379,279) (421,585) + 10 Other Expenses (125,265) (62,688) (125,265) (62,688) Net Finance Cost (189,452) (163,083) - 16 (704,812) (529,320) - 33 Profit / (Loss) before Tax (54,208) (258,091) + 79 (561,114) (713,206) + 21 Tax Expense 21,828 33, ,828 33, Profit / (Loss) for the Period (32,380) (224,854) + 86 (539,286) (679,969) + 21 Other Comprehensive Income Net Gain on Financial Assets Available for Sale 9,381 (683) + 1,473 16,454 (3,057) Available for Sale Financial Asset - Reclassified to Profit or Loss (11,870) Actuarial Gain / (Loss) on Defined Benefit Obligations (45,059) 24, (45,059) 24, Tax Effect on Actuarial Gain or Loss 12,617 (6,838) ,617 (6,838) Other Comprehensive Income for the period, net of Tax (22,560) 16, (27,858) 14, Total Comprehensive Income (54,940) (207,955) + 74 (567,144) (665,444) + 15 Profit Attributable to Owners of the Company (32,380) (224,854) + 86 (539,286) (679,969) + 21 Non-controlling Interests (32,380) (224,854) + 86 (539,286) (679,969) + 21 Total Comprehensive Income Attributable to STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY Owners of the Company (54,940) (207,955) + 74 (567,144) (665,444) + 15 Non-controlling Interests (54,940) (207,955) + 74 (567,144) (665,444) + 15 Earnings/ (Loss) per Share (Rs.) (1.23) (9.37) + 87 (20.47) (28.33) + 28 Diluted Earnings/ (Loss) per Share (Rs.) (1.41) (11.53) + 88 (23.53) (34.85) + 32 Lankem Ceylon PLC 3/9

4 STATEMENT OF FINANCIAL POSITION Consolidated Company As at As at As at As at Unaudited Audited Unaudited Audited ASSETS Property, Plant & Equipment 5,854,714 6,359, ,208 1,169,669 Investment Properties 448, , Intangible Assets 1,167, , Investments in Subsidiaries - - 3,245,272 3,079,943 Investments in Associates 527, , , ,500 Investments Classified as Available for Sale 55,142 54,164 52,162 62,878 Deferred Tax Assets ,058 61,198 Total Non - Current Assets 8,052,817 8,198,896 4,370,200 4,696,189 Inventories 2,026,676 2,691, ,092 1,244,693 Trade and Other Receivables 4,514,106 4,306,671 1,054,717 1,339,320 Amounts Due from Related Parties - Trade - - 9,164 7,560 Amounts Due from Related Parties - Non Trade 241, , , ,627 Loans Due from Related Parties 115,700 85,000 85,700 55,000 Income Tax Recoverable 53,103 52,795 24,457 24,457 Investments Classified as Fair Value through Profit or Loss 68, ,041 68, ,041 Bank & Cash Balances 1,209, , , ,032 Asset Held For Sale 60, ,956 60,000 - Total Current Assets 8,289,113 8,149,164 3,102,721 3,431,730 Total Assets 16,341,930 16,348,060 7,472,921 8,127,918 EQUITY Stated Capital 930, , , ,218 Other Capital Reserves 4,833 4, Available for Sale Reserves 3,720 1,750 5, Revenue Reserves 558,286 1,340, , ,600 Equity attributable to Owners of the Company 1,497,185 1,883,739 1,047,337 1,221,362 Non-controlling Interests 2,110,195 2,237, Total Equity 3,607,380 4,121,109 1,047,337 1,221,362 LIABILITIES Interest bearing Borrowings 2,607,274 2,577,296 1,536,621 1,641,109 Deferred Income 14,769 17, Deferred Tax Liabilities 15,381 41, Retirement Benefit Obligations 264, , ,503 75,468 Total Non - Current Liabilities 2,901,796 2,820,406 1,664,124 1,716,577 Interest bearing Borrowings 4,976,281 4,339,416 2,603,335 2,336,673 Loans Payable to Related Parties 158, , , ,050 Trade and Other Payables 2,563,190 3,000, ,894 1,357,287 Amounts Due to Related Parties - Trade ,355 3,585 Amounts Due to Related Parties - Non Trade 599, , , ,733 Income Tax Payable 133, , Bank Overdraft 1,401,975 1,142, , ,651 Total Current Liabilities 9,832,754 9,406,545 4,761,460 5,189,979 Total Liabilities 12,734,550 12,226,951 6,425,584 6,906,556 Total Equity and Liabilities 16,341,930 16,348,060 7,472,921 8,127,918 Net Assets per Share (Rs.) I certify that these Financial Statements have been prepared in compliance with the requirements of the Companies Act. No. 07 of Sgd Asoka Piyadigama Chief Financial Officer The Directors are responsible for the preparation and presentation of these Financial Statements. Approved and signed for and on behalf of the Board of Directors of Lankem Ceylon PLC. Sgd S.D.R.Arudpragasam Director Sgd D.L.Vitharana Director Colombo 30 th May 2018 Lankem Ceylon PLC 4/9

5 Consolidated LANKEM CEYLON PLC STATEMENT OF CHANGES IN EQUITY Equity Attributable to Equity Holders of the Parent Stated Other Capital Available for Sale Retained Total Non - Controlling Total Capital Reserves Reserves Profit/(Loss) Interest Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Balance as at ,218 4,833 1,750 1,340,938 1,883,739 2,237,370 4,121,109 Effect of Acquisitions, Disposals and changes in Percentage Holding in Subsidiaries (195,797) (195,797) (158,583) (354,380) Right Issue of Shares 394, , ,128 Direct cost on Right Issue (1,009) (1,009) - (1,009) Profit / (Loss) for the year (535,866) (535,866) 117,755 (418,111) Other Comprehensive Income for the Period Dividend Paid - - 1,970 (49,980) (48,010) (12,023) (60,033) (74,324) (74,324) Balance as at ,346 4,833 3, ,286 1,497,185 2,110,195 3,607,380 Balance as at ,218 3,409 3,713 2,118,926 2,662,266 2,609,592 5,271,858 Effect of Acquisitions, Disposals and changes in Percentage Holding in Subsidiaries - 1,424 - (20,096) (18,672) (354,492) (373,164) Profit / (Loss) for the year (789,736) (789,736) - 58,272 (731,464) Other Comprehensive Income for the Period - - (1,963) 31,844 29,881 7,503 37,384 Dividend Paid (83,505) (83,505) Balance as at ,218 4,833 1,750 1,340,938 1,883,739 2,237,370 4,121,109 Company Stated Available for Sale Retained Total Capital Reserves Profit/(Loss) Rs. '000 Rs. '000 Rs. '000 Rs. '000 Balance as at , ,600 1,221,362 Right Issue of Shares 394, ,128 Direct cost on Right Issue - - (1,009) (1,009) Profit / (Loss) for the year - - (539,286) (539,286) Other Comprehensive Income for the Period - 4,584 (32,442) (27,858) Balance as at ,346 5, ,863 1,047,337 Balance as at ,218 3,601 1,346,987 1,886,806 Profit / (Loss) for the year - - (679,969) (679,969) Other Comprehensive Income for the Period - (3,057) 17,582 14,525 Balance as at , ,600 1,221,362 Lankem Ceylon PLC 5/9

6 CASH FLOW STATEMENT Consolidated Unaudited Company Unaudited For the Year ended 31 st March Cash Flows from Operating Activities Profit / (Loss) before Tax (284,349) (613,132) (561,114) (713,206) Adjustments for : Depreciation /Amortisation on Property, Plant & Equipment 494, ,275 93,097 98,544 Dividend Income (2,692) (5,473) (77,023) (108,499) Interest Expense 1,380,445 1,043, , ,079 (Gain) / Loss on Disposal of Property, Plant & Equipment (450,861) (15,577) (284,652) (320) (Gain) / Loss on Translation of Foreign Currency (37,479) (55,409) (42,839) (48,297) Interest Income (55,680) (30,478) (94,008) (82,080) Share of (Profit) / Loss from Associates 54,524 75, Defined Benefit Plan Cost - Retiring Gratuity 46,303 49,844 16,514 18,722 Provision / (Reversal of Provision) for Doubtful Debts - Trade & Other Receivable 38,198 (68,686) 52, Provision /(Reversal of Provision) for Doubtful Debts - Related Parties (30,700) - 13, Reversal / (Provision) for Obsolete Inventories 2,684 16,950 34,561 45,413 Fair Value (Gain) / Loss on Investments classified as FVTPL (69,283) 618 (69,283) 618 Provision /(Reversal of Provision) for investments of subsidries ,759 16,699 Impairment of AFS investments 3,175-3,175 - Amortisation of Deferred Income (2,823) (2,748) - - Creditors no longer payable written back (3,576) (1,901) (2,538) (1,901) Provision for unrecoverable of receivables/ unclaimble ESC 37,289-37,289 - (Gain) / Loss on Disposal of Investments (20,020) - (45,239) - Profit before Working Capital Changes 1,099, ,070 24,922 (114,570) (Increase) / Decrease in Inventories 662,630 (211,719) 614,040 (233,712) (Increase) / Decrease in Trade and Other Receivables (343,230) 60, , ,546 (Increase) / Decrease in Amounts due from Related Parties 154,447 (44,396) (41,462) 127,731 Increase / (Decrease) in Trade and Other Payables (395,258) 726,713 (388,954) 66,360 Increase / (Decrease) in Amounts due to Related Parties 230,087 71,050 18,325 51,721 Cash generated from Operations 1,408,077 1,436, , ,076 Income Tax Paid (136,531) (155,061) - - Interest Paid (1,361,967) (1,002,012) (793,173) (485,216) Retiring Gratuity Paid (52,530) (31,937) (77,397) (13,896) Reimbursement from Gratuity Fund 67,859 8,763 67,859 - Net Cash generated from / (used in) Operating Activities (75,092) 256,358 (396,919) (383,036) Cash Flows from Investing Activities Purchase & Construction of Property, Plant & Equipment (626,275) (531,808) (56,655) (51,553) Investment in Subsidiaries (665,685) (354,357) (320,181) (404,357) Interest Received 41,970 30,478 4,443 - Dividend Received 2,692 5,473 77, ,487 Proceeds on Disposal of Subsidiaries ,122 - Acquisition of Investments classified as AFS & FVTPL (16,135) - (16,135) - Net Proceeds on disposal of Investments classified as AFS & FVTPL 159,911 4, ,383 4,328 Settlement of loan granted to related parties ,000 Proceeds on Disposal of Property, Plant & Equipment 950,600 14, ,405 1,497 Net Cash generated from / (used in) Investing Activities (152,921) (831,756) 739,405 (291,598) Cash Flows from Financing Activities Proceed from Right Issue & share issue 394, ,128 - Direct cost on Right Issue (1,009) - (1,009) - Proceeds from Long Term Loans 1,155,941 2,704, ,445 2,165,000 Repayment of Long Term Loans (931,461) (1,133,021) (541,025) (760,695) Repayment of Debentures - (200,000) - (200,000) Loans Obtained from Related Parties 262,544 80, , ,000 Settlement of Loans Payable to Related Parties (530,500) (82,000) (742,086) (2,000) Dividend Paid (74,324) (83,505) - - Net Lease payment during the year (3,026) (3,145) - - Net Movement in Short Term Borrowings 443,929 (122,020) 36,754 (469,929) Net Cash generated from / (used in) Financing Activities 716,222 1,160, , ,376 Net Increase in Cash & Cash Equivalents 488, , , ,742 Cash & Cash Equivalents at the beginning of the year (680,622) (1,265,948) (571,619) (729,361) Cash & Cash Equivalents at the end of the period (192,413) (680,622) (24,728) (571,619) Analysis of Cash & Cash Equivalents at the end of the Period Cash in Hand & Bank 1,209, , , ,032 Bank Overdraft (1,401,975) (1,142,237) (778,424) (750,651) (192,413) (680,622) (24,728) (571,619) Lankem Ceylon PLC 6/9

7 OPERATING SEGMENT INFORMATION Information based on the Group's Operating Segments Segment Revenue Consolidated Company For the year ended 31st March Trading Consumer Products 6,968,466 4,760, , ,118 Trading Industrial Products 10,296,614 11,426,938 4,091,610 4,436,472 Leisure 1,564,894 1,414, Others ,829,974 17,601,856 4,204,150 4,577,590 Less : Inter - Segment Revenue (341,457) (340,649) - - Segment Results - Consolidated LANKEM CEYLON PLC 18,488,517 17,261,207 4,204,150 4,577,590 Operating Profit Profit / (Loss) before Tax For the year ended 31st March Consumer Products 101, ,858 (98,802) 93,622 Industrial Products 676, ,359 (179,115) (510,281) Leisure 201,411 26,480 91,353 (105,793) Others 9,035 25,730 (97,786) (90,680) 988, ,427 (284,349) (613,132) Lankem Ceylon PLC 7/9

8 Notes to the Financial Statements 1 2 LANKEM CEYLON PLC The Interim Financial Statements have been prepared in accordance with the accounting policies set out in the audited financial statements for the year ended 31st March 2017, and also in compliance with Sri Lanka Accounting Standard 34 - Interim Financial Reporting. The presentation and classification of the financial statements of the previous period, have been amended, where relevant, for better presentation and to be comparable with those of the current period. 3 No circumstances have arisen since the Balance Sheet date that would require adjustments to or disclosures in the financial statements. 4 There has been no significant change in the nature of the contingent liabilities which were disclosed in the audited financial statements for the year ended 31st March The figures in the financial statements are provisional and subject to audit. Share Information As at 31st March Stated Capital (Rs.'000) 930, ,218 Number of Ordinary Shares (Voting) Issued 33,853,200 24,000,000 7 Market Price recorded during the quarter Rs. Rs. - Highest Lowest Last traded price (Volume Weighted Average) Directors' direct shareholdings as at Name of Director No. of Shares Mr. S. D. R. Arudpragasam 25,000 Mr. Anushman Rajaratnam 1,500 Mr. K. P. David 8,150 Mr. R. T. Weerasinghe 7,000 9 Public Shareholders The number of public shareholders as at 31 st March 2018 were 1, The Percentage of Shares held by the Public as at 31 st March 2018 was 14.59%. 11 The Float Adjusted Market Capitalisation as at 31 st March 2018 was Rs Mn. Lankem Ceylon PLC 8/9

9 Notes to the Financial Statements LANKEM CEYLON PLC 12 The Twenty Major Shareholders as at 31 st March 2018 were as follows; Name of Shareholders No. of Shares % The Colombo Fort Land & Building PLC 15,000, E. B. Creasy & Company PLC 10,974, Associated Electrical Corporation Ltd. 1,507, Colombo Fort Investments PLC 965, Darley Butler & Company Ltd. 536, Seylan Bank PLC / Thirugnanasambandar Senthilverl 422, Guardian Asset Management Ltd 400, Sri Lanka Insurance Corporation Ltd. - General Fund 306, Capital Investments Ltd. 274, Acuity Partners (Pvt) Limited /Colombo Investment Trust PLC 225, C M Holdings PLC 160, Acuity Partners (Pvt) Limited /Colombo Fort Investment PLC 150, A E C Properties (Pvt) Ltd. 150, People's Leasing & Finance PLC. / Hi-Line Trading (Pvt) Ltd. 146, Employees Trust Fund Board 82, Bank of Ceylon No.01 Account 72, Mr Anthony Isidore De Silva & Mr. Francis Xavier Ranjith Pereira 55, Mr. Mohottige Don Hemantha Mannapperuma 51, Corporate Holdings (Private) Limited A/C 01 48, Colombo Investment Trust PLC 45, ,573, Lankem Ceylon PLC 9/9