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

Transcription

1 INTERIM FINANCIAL STATEMENTS For The Six Months Ended 30 th September 2018

2 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSOLIDATED Quarter Quarter Six months Six months ended ended Variance ended ended Variance % % Rs.'000 Rs.'000 Rs.'000 Rs.'000 Revenue 4,203,810 4,184, ,267,589 8,229, Cost of Sales (3,405,859) (3,392,095) - - (6,720,084) (6,714,335) - - Gross Profit 797, , ,547,505 1,515, Other Income 196, , , , Distribution Costs (291,773) (295,453) + 1 (580,811) (593,683) + 2 Administration Expenses (502,257) (477,250) - 5 (989,021) (930,377) - 6 Share of Profit /(Loss) from Joint Venture (5,727) (3,103) Share of Profit /(Loss) from Associates (89,099) 8,332-1,169 (191,204) 29, Net Finance Costs (339,346) (276,494) - 23 (681,060) (558,839) - 22 Profit / (Loss) before Tax (234,104) (101,613) (659,929) (360,865) - 83 Tax Expense (18,914) (51,324) + 63 (30,892) (68,346) + 55 Profit / (Loss) for the Period (253,018) (152,937) - 65 (690,821) (429,211) - 61 Other Comprehensive Income/ (Expnese) Net Gain/ (Loss) on Financial Assets Available for Sale (14,910) 9, (19,844) 15, Available for Sale Financial Asset - Reclassified to Profit or Loss 3,053 (12,371) ,053 (12,371) Actuarial Gain/ (Loss) on Defined Benefit Obligations (618) 1, ,902 3, Other Comprehensive Income/ (Expense) for the period, net of Tax (12,476) (652) - 1,813 (14,890) 6, Total Comprehensive Income/ (Expense) (265,494) (153,589) - 73 (705,711) (422,762) - 67 Profit/ (Loss) Attributable to Owners of the Company (260,169) (176,421) - 47 (677,343) (423,275) - 60 Non-controlling Interests 7,151 23, (13,478) (5,936) - - (253,018) (152,937) - 65 (690,821) (429,211) - 61 Total Comprehensive Income/ (Expense) Attributable to Owners of the Company (267,698) (177,734) - 51 (687,286) (417,486) - 65 Non-controlling Interests 2,204 24, (18,425) (5,276) (265,494) (153,589) - 73 (705,711) (422,762) - 67 Earnings/ (Loss) per Share (Rs.) (7.69) (7.35) - 5 (20.01) (17.64) - 13 Lankem Ceylon PLC 2/9

3 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY Quarter Quarter Variance Six months Six months Variance ended ended % ended ended % Rs.'000 Rs.'000 Rs.'000 Rs.'000 Revenue 797, , ,530,630 1,928, Cost of Sales (707,146) (825,879) + 14 (1,316,847) (1,612,894) + 18 Gross Profit 90, , , , Other Income 157,992 14, ,378 79, Distribution Costs (99,755) (116,712) + 15 (203,657) (240,251) + 15 Administration Expenses (79,631) (103,058) + 23 (167,203) (206,737) + 19 Net Finance Cost (183,186) (143,264) - 28 (364,415) (288,908) - 26 Profit / (Loss) before Tax (114,379) (190,125) + 40 (297,115) (340,368) + 13 Tax Expense Profit / (Loss) for the Period (114,379) (190,125) + 40 (297,115) (340,368) + 13 Other Comprehensive Income Net Gain / (Loss) on Financial Assets Available for Sale (4,291) 9, (8,969) 14, Available for Sale Financial Asset - Reclassified to Profit or Loss 3,053 (12,371) ,053 (12,371) Other Comprehensive Income for the period, Net of Tax (1,238) (2,493) + 50 (5,916) 2, Total Comprehensive Income/ (Expense) (115,617) (192,618) + 40 (303,031) (338,210) + 10 Profit Attributable to Owners of the Company (114,379) (190,125) + 40 (297,115) (340,368) + 13 Non-Controlling Interests (114,379) (190,125) + 40 (297,115) (340,368) + 13 Total Comprehensive Income Attributable to Owners of the Company (115,617) (192,618) + 40 (303,031) (338,210) + 10 Non-Controlling Interests (115,617) (192,618) + 40 (303,031) (338,210) + 10 Earnings / (Loss) per Share (Rs.) (3.38) (7.92) + 57 (8.78) (14.18) + 38 Lankem Ceylon PLC 3/9

4 Consolidated Company LANKEM CEYLON PLC STATEMENT OF FINANCIAL POSITION Consolidated Company As at As at As at As at As at As at Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Audited Audited ASSETS 5,853, ,209 Property,Plant & Equipment 5,655,014 6,367, ,756 1,128, ,644 - Investment Properties 417, , ,170,226 - Intangible Assets 1,170,226 1,153, ,245,273 Investments in Subsidiaries - - 3,245,273 3,400, , ,500 Investments in Associates 293, , , , ,143 - Investments in Joint Venture 284, ,186 61,157 Investments Classified as Available for Sale 54,980 54,284 52,626 63, Investments Classified as Held to Maturity ,058 Deferred Tax Assets 145, ,058 61,198 8,308,176 4,379,197 Total Non - Current Assets 8,020,437 8,375,891 4,289,213 4,975,965 2,026, ,092 Inventories 2,019,927 2,326, , ,830 4,479,372 1,054,717 Trade and Other Receivables 3,595,026 3,691, ,645 1,115,905-9,164 Amounts Due from Related Parties - Trade , , ,484 Amounts Due from Related Parties - Non Trade 348, , , , ,700 85,700 Loans Due from Related Parties 115,700 85,000 85,700 55,000 53,102 24,457 Income Tax Recoverable 55,242 52,241 24,465 24,457 Investments Classifiled as Fair Value Through - 68,411 68,411 Profit or Loss 37, ,401 37, ,401 1,210, ,696 Bank & Cash Balances 502, ,314 47, ,036 60,000 60,000 Asset Held For Sale 60, ,115 60,000-8,254,873 3,102,721 Total Current Assets 6,735,013 7,368,514 2,259,034 3,107,245 16,563,049 7,481,918 Total Assets 14,755,450 15,744,405 6,548,247 8,083,210 EQUITY 930, ,346 Stated Capital 930, , , ,218 4,833 - Other Capital Reserves 4,833 4, ,734 14,122 Available for Sale Reserves 889 4,667 8,207 2, , ,864 Revenue Reserves (66,534) 654,859 (185,252) 344,232 1,556,820 1,056,332 Equity attributable to Owners of the Company 869,534 1,200, , ,152 2,129,658 - Non-controlling Interests 2,054,982 2,085, ,686,478 1,056,332 Total Equity 2,924,516 3,285, , ,152 LIABILITIES 2,607,274 1,536,621 Interest Bearing Borrowings 3,244,487 2,286,773 1,847,689 1,336,323 14,769 - Deferred Income 13,357 16, ,199 - Deferred Tax Liabilities 288,624 41, , ,503 Retirement Benefit Obligations 278, , ,484 35,422 3,084,613 1,664,124 Total Non - Current Liabilities 3,825,339 2,502,006 1,979,173 1,371,745 4,976,244 2,603,335 Interest Bearing Borrowings 3,516,546 4,787,941 1,720,382 2,926, , ,164 Loans Payable to Related Parties 287, , , ,249 2,559, ,896 Trade and Other Payables 2,669,647 2,802,736 1,022,397 1,098,920-10,355 Amounts Due to Related Parties - Trade , , ,288 Amounts Due to Related Parties Non - Trade 227, , , ,966 95,123 - Income Tax Payable 59, , ,401, ,424 Bank Overdraft 1,244,614 1,369, , ,280 9,791,958 4,761,462 Total Current Liabilities 8,005,595 9,956,727 3,815,773 5,828,313 12,876,571 6,425,586 Total Liabilities 11,830,933 12,458,733 5,794,946 7,200,058 16,563,049 7,481,918 Total Equity and Liabilities 14,755,450 15,744,405 6,548,247 8,083, 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 A.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 R.N. Bopearatchy Director Colombo 12 th November 2018 Lankem Ceylon PLC 4/9

5 STATEMENT OF CHANGES IN EQUITY Equity Attributable to Equity Holders of the Parent Stated Other Capital Avaiable for Sale Retained Total Non-controlling Total Capital Reserves Reserves Profit/(Loss) Interest Consolidated Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Balance as at ,346 4,833 12, ,907 1,556,820 2,129,658 3,686,478 Profit / (Loss) for the Period (677,343) (677,343) (13,478) (690,821) Other Comprehensive Income for the Period Dividend Paid - - (11,845) 1,902 (9,943) (4,947) (14,890) (56,251) (56,251) Balance as at ,346 4, (66,534) 869,534 2,054,982 2,924,516 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 (265,676) (265,676) (90,748) (356,424) Profit / (Loss) for the Period (423,275) (423,275) (5,936) (429,211) Other Comprehensive Income for the Period - - 2,917 2,872 5, ,449 Dividend Paid (56,251) (56,251) Balance as at ,218 4,833 4, ,859 1,200,577 2,085,095 3,285,672 Stated Avaiable for Sale Retained Total Capital Reserves Profit/(Loss) Company Rs. '000 Rs. '000 Rs. '000 Rs. '000 Balance as at ,346 14, ,864 1,056,332 Profit / (Loss) for the Period - - (297,115) (297,115) Other Comprehensive Income for the Period - (5,915) - (5,915) Balance as at ,346 8,207 (185,251) 753,302 Balance as at , ,600 1,221,362 Profit / (Loss) for the Period - - (340,368) (340,368) Other Comprehensive Income for the Period - 2,158-2,158 Balance as at ,218 2, , ,152 Lankem Ceylon PLC 5/9

6 CASH FLOW STATEMENT Consolidated Company For the Six Months ended 30 th September Rs.'000 Rs.'000 Rs.'000 Rs.'000 Cash Flows from Operating Activities Profit / (Loss) before Tax (659,929) (360,865) (297,115) (340,368) Adjustments for : Depreciation / Amortisation on Property, Plant & Equipment 228, ,674 35,332 46,588 Write - off of Immature Plantation Dividend Income (265) (937) (90,357) (63,675) Interest Expense 604, , , ,748 (Gain) / Loss on Disposal of Property, Plant & Equipment (155,322) (100,230) (131,261) (498) (Gain) / Loss on Translation of Foreign Currency 38,665 (10,406) (715) (18,944) Interest Income (11,935) (612) (46,098) (49,717) Share of Loss/ (Profit) of Associates 191,204 (29,249) - - Defined Benefit Plan Cost - Retiring Gratuity 26,250 26,659 10,297 11,611 Provision / (Reversal of Provision) for Doubtful Debts - Trade & Other Receivable 17,005 12,185 6,271 7,197 Provision for Obsolete Inventories 26,145 (11,223) 8,197 9,646 Fair value (Gain) / Loss on investments classified as FVTPL 15,458 (82,179) 15,458 (82,179) (Gain) / Loss on Disposal of Available for Sale Investments 949 (10,219) 1,593 (10,219) Amortisation of Defferred Income Deffered Income (1,144) (1,241) - - Profit/ (Loss) before Working Capital Changes 320, ,371 (92,628) (50,810) (Increase) / Decrease in Inventories (19,396) 376,460 24, ,217 (Increase) / Decrease in Trade and Other Receivables 838, , , ,218 (Increase) / Decrease in Amounts due from Related Parties (106,237) (271,036) (73,328) (67,429) Increase / (Decrease) in Trade and Other Payables 198,217 (125,646) 41,463 (270,684) Increase / (Decrease) in Amounts due to Related Parties (474,032) 37,856 24,572 68,385 Cash generated from Operations 757, ,881 95, ,897 Income Tax Paid (89,725) (88,393) (8) - Interest Paid (516,477) (589,433) (335,867) (361,019) Retiring Gratuity Paid (10,312) (61,616) (6,316) (51,657) Net Cash generated from Operating Activities 140, ,439 (246,298) (272,779) Cash Flows from Investing Activities Purchase & Construction of Property, Plant & Equipment (100,493) (115,277) (2,699) (6,204) Investment in Subsidiaries (661,913) - (320,181) Investment in AFS (8,526) (8,526) Interest Received 10,965 21, ,249 Net Proceeds on disposal of Short Term and AFS investments 91,718 33,798 16,913 33,798 Dividends Received ,257 63,675 Net Investment in Short Term Investments (1,098) - (1,098) - Proceeds on Disposal of Property, Plant & Equipment 184, , , Net Proceeds on Aquisition /Disposal of Investments classified as AFS 8,692-8,692 - Long Term Loans obtained from Related Parties Long Term Loans Receipts/(Granted) to Related Parties Settlement of Loans Payable to Related Parties Net Cash generated from / (used in) Investing Activities 185,819 (611,564) 254,570 (225,748) Cash Flows from Financing Activities Recovery / (Grant) of Loans to Related Parties 150,000 50, , ,199 Proceeds from Long Term Loans 1,355, , , ,445 Repayment of Long Term Loans (1,423,024) (531,837) (776,976) (271,480) Repayment of Debentures Dividend Paid (56,251) (56,251) - - Settlement of Related Party Loans (80,000) (2,000) (80,000) (42,000) Net Movement in Short Term Borrowings (823,078) 256,792 (481,599) 449,738 Net Cash generated from / (used in) Financing Activities (876,997) 99,455 (501,885) 433,902 Net Increase in Cash & Cash Equivalents (550,333) (293,670) (493,613) (64,625) Cash & Cash Equivalents at the begining of the year (191,407) (680,622) (24,728) (571,619) Cash & Cash Equivalents at the end of the period (741,740) (974,292) (518,341) (636,244) Analysis of Cash & Cash Equivalents at the end of the Period Cash in Hand & Bank 502, ,314 47, ,036 Bank & Other Borrowings (1,244,614) (1,369,606) (565,614) (840,280) (741,740) (974,292) (518,341) (636,244) Lankem Ceylon PLC 6/9

7 OPERATING SEGMENT INFORMATION Information based on the Group's Operating Segments Segment Revenue - Consolidated Segment Revenue Inter Segment Net Revenue For the Six months ended 30th September Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Consumer 3,217,982 1,824,087 (90,425) (29,371) 3,127,556 1,794,715 Industrial 4,506,716 5,965,088 (20,506) (112,113) 4,486,210 5,852,975 Leisure 636, , , ,265 8,378,468 8,371,440 (110,931) (141,484) 8,267,536 8,229,955 Segment Results - Consolidated Operating Profit/(Loss) Finance Cost Loss before Tax Tax Expense Profit/ (Loss) for the Period For the Six months ended 30th September Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Consumer 124,765 65,940 (56,010) (34,832) 68,757 31,110 (30,881) (22,438) 37,876 8,672 Industrial 110, ,275 (521,162) (442,476) (413,330) (313,202) 4,872 (40,740) (408,458) (353,942) Leisure (35,187) (22,056) (67,534) (53,024) (102,721) (75,080) (4,852) (5,109) (107,573) (80,189) Others 14,925 (4,434) (36,354) (28,507) (212,634) (3,693) (31) (59) (212,666) (3,752) 215, ,725 (681,060) (558,839) (659,929) (360,865) (30,892) (68,346) (690,821) (429,211) Lankem Ceylon PLC 7/9

8 Notes to the Financial Statements 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 31 st March 2018, 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. Subsequent to the reporting period, no circumstances have arisen that would require adjustments to or disclosures in the financial statements. 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 31 st March The figures in the Financial Statements are provisional and subject to audit. Share Information As at 30 th September 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 Lankem Ceylon PLC 8/9

9 Notes to the Financial Statements 9 The number of public shareholders as at were 1, LANKEM CEYLON PLC The applicable option under Colombo Stock Exchange Rule on Minimum Public Holding is Option 2 and the Float Adjusted Market Capitalization as at was Rs Mn. 11 The Percentage of Shares held by the Public as at was 14.65%. 12 The Twenty Major Shareholders as at 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 c u 966, Darley Butler & Company Ltd. 536, Seylan Bank PLC / Thirugnanasambandar Senthilverl 435, 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 54, Corporate Holdings (Private) Limited A/C 01 48, Colombo Investment Trust PLC 45, ,590, Lankem Ceylon PLC 9/9