Interim Report. Third quarter, 9 months ended 31st December Hayleys Fabric PLC

Transcription

1 Interim Report Third quarter, 9 months ended 31st December 2017 Hayleys Fabric PLC

2 Corporate Information 1 Name of Company Bankers Hayleys Fabric PLC Standard Chartered Bank HSBC Legal Form Hatton National Bank A Quoted Public Company with Limited Liability Bank of Ceylon (Incorporated in Sri Lanka in 1993 ) NDB Bank Sampath Bank Company Registration Number Commercial Bank of Ceylon PQ 37. Deutsche Bank Citibank Accounting year end Seylan Bank 31st March Pan Asia Bank People's Bank Principal Activity Manufacturing of knitted fabric Auditors Ernst & Young Directors Chartered Accountants, A.M.Pandithage - Chairman 201, De Saram Place, E.R.P. Goonetilleke - Managing Director Colombo 10. K.D.D.Perera S.C.Ganegoda H.Somashantha R.N.Somaratne Dr. N.S.J. Nawaratne A.S.Jayatilleka Ms.Yogadinusha Bhaskaran (Alternative Director to K.D.D.Perera) Secretaries Hayleys Group Services (Pvt) Ltd. 400, Deans Road, Colombo 10. Telephone: (94-11) (4 Lines) Registered Office 400, Deans Road, Colombo 10. Telephone: (94-11) Main Office & Factory Narthupana Estate, Neboda. Telephone: 94 (34) ,

3 2 Investor Information Market value of shares ( Rs.) ( Rs.) Closing Price Highest price recorded for the three months ending Lowest price recorded for the three months ending Highest price recorded for the nine months ending Lowest price recorded for the nine months ending Share Trading No. of transactions 8,560 7,999 No. of shares traded 26,795,162 24,034,804 Value of shares traded (Rs.) 437,301, ,139,390 First twenty Shareholders as at Name of Shareholder No. of Shares % Hayleys PLC No.3 Share Investment Account 122,487, The Ceylon Guardian Investment Trust PLC. A/C No 02. 8,645, The Ceylon Investment PLC. A/C No 02. 8,474, Union Assurance PLC/ A/C No.05 (Unit-Linked Life Inurance Fund - Equity Fund) 7,074, Employees Provident Fund 5,540, Hayleys Advantis Limited 5,036, Hayleys Agriculture Holdings Limited 3,472, The Ceylon Chamber of Commerce Account No.02 2,506, MR.A.N.Esufally 1,815, Mr. A.M.Weerasinghe 1,800, Hatton National Bank PLC A/C No. 4 (HNB Retirement Pension Fund) 1,528, East India Holding (Pvt) Ltd. 1,027, Freudenberg Shipping Agencies Limited 841, The Sri Lanka Fund 817, Bank of Ceylon A/C NDB Wealth Growth Fund 774, Bank of Ceylon No.01 Account 774, Mr.G Dangampola & Mrs.N.P.Dangampola 773, Mr. K.A.S.R Nissanka 700, Mrs. M.T.Moosajee 649, Allnatt Investments (Pvt) Ltd 565, Total 175,304, The percentage of shares held by public as at 31st December, 2017 was 36.92%. Number of shareholders representing Public Holding was 3,349. Directors' Shareholding As At Direct holding Director No. of Shares *Mr.K.D.D.Perera 4,090 Mr.R.N.Somaratne 25,000 Mr.H.Somashantha 20,000 * Mr.K.D.D.Perera holds 50.44% directly and indirectly of the total issued shares of Hayleys PLC which holds 122,487,023 shares in Hayleys Fabric PLC Number of shares 207,740, ,740,888 Net assets per share -USD LKR

4 STATEMENT OF FINANCIAL POSITION 3 As at As at As at USD USD USD Audited Unaudited Unaudited ASSETS Non-Current Assets 24,585,809 Property, plant and equipment 25,221,598 23,884, ,207 Intangible assets 176, ,163 24,833,016 25,397,725 24,191,660 Current Assets 11,207,843 Inventories 10,789,332 10,728,979 6,928,230 Trade receivables 6,538,158 7,851,301 1,117,430 Other receivables 1,360,845 1,171,445 1,222,770 Advances and prepayments 518, ,799 1,466,049 Cash and cash equivalents 227,885 1,074,663 21,942,322 19,435,059 21,533,187 46,775,338 Total Assets 44,832,784 45,724,847 EQUITY AND LIABILITIES Capital and Reserves 17,561,761 Stated capital 17,561,761 17,561,761 1,442,289 Revaluation reserve 1,442,289 1,401,337 (1,418,583) Retained losses (1,554,956) (1,328,423) 17,585,467 Total Equity 17,449,094 17,634,675 Non-Current Liabilities 6,213,954 Interest bearing loans and borrowings 3,869,445 5,913,283 1,193,714 Deferred tax liabilities 1,193,714 1,301,773 2,196,587 Retirement benefit obligations 2,351,279 2,082,148 9,604,255 7,414,438 9,297,204 Current Liabilities 5,292,100 Trade and other payables 6,256,505 5,441,095 2,339,098 Current portion of interest bearing loans and borrowings 2,829,949 1,585,505 45,410 Amounts due to Hayleys PLC 52,888 45,652 31,657 Income tax payable 7,607 60, ,672 Other current non financial liabilities 798, ,242 11,133,679 Short term interest bearing loans and borrowings 10,023,454 10,840,677 19,585,616 19,969,252 18,792,968 46,775,338 Total Equity and Liabilities 44,832,784 45,724,847 The Statement of Financial Position as at 31st December 2017 and Statements of Profit or Loss and other Comprehensive Income, Changes in Equity and Cash Flow for nine months then ended as well as the Statement of Profit or Loss and other Comprehensive Income for three months then ended are drawn up from the unaudited financial statements of the Company and they provide the information required by the Colombo Stock Exchange. The Notes on page 7 form an integral part of these financial statements. These financial statements are in compliance with the requirements of the Companies Act No : 07 of Sgd. Ruwan Rohitha Bandara Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by, Sgd. A.M.Pandithage Chairman Colombo 06 th February 2018 Sgd. E.R.P.Goonetilleke Managing Director

5 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 4 Year ended 9 months to 9 months to 3 months to 3 months to Variance Variance USD USD USD % USD USD % Audited Unaudited Unaudited Unaudited Unaudited 55,537,401 Revenue 42,399,954 42,465,197-13,812,565 13,656, (49,044,172) Cost of Sales (38,032,348) (37,377,685) +2 (12,333,950) (12,213,091) +1 6,493,229 Gross Profit 4,367,606 5,087, ,478,615 1,443, ,590 Other Operating Income 18,425 12, (66) +130 (4,706,240) Administrative Expenses (3,412,200) (3,476,240) -2 (1,209,697) (1,072,066) +13 (471,881) Distribution Expenses (371,348) (354,325) +5 (90,637) (90,452) - (4,021) Other Expenses (933,354) Net Financing Costs (738,856) (711,839) +4 (247,880) (206,475) ,323 Profit /(Loss) Before Tax (136,373) 557, (69,579) 74, ,944 Income Tax (Expense)/Reversal - (50,265) - 6, ,267 Profit / (loss) for the period (136,373) 507, (69,579) 80, Other Comprehensive Income 40,952 Surplus on revaluation of land (83,240) Actuarial loss on defined benefit plans ,989 Income tax effect relating to actuarial loss ,968 Total Comprehensive Income/(Loss), Net of Tax (136,373) 507,176 (69,579) 80, Earnings/(Loss) per Share (0.001) (0.000) 0.000

6 STATEMENT OF CHANGES IN EQUITY 5 For the period ended 31st December 2017 Stated Revaluation Retained Total capital reserve earnings USD USD USD USD Balance as at 31st March ,561,761 1,442,289 (1,418,583) 17,585,467 Profit /(Loss) for the period - - (136,373) (136,373) Balance as at 31st December ,561,761 1,442,289 (1,554,956) 17,449,094 For the period ended 31st December 2016 Balance as at 31st March ,561,761 1,401,337 (1,835,599) 17,127,499 Profit for the period , ,176 Balance as at 31st December ,561,761 1,401,337 (1,328,423) 17,634,675

7 STATEMENT OF CASH FLOWS 6 year ended 9 months to 9 months to Cash flows from / (used in) operating activities USD USD USD Audited Unaudited Unaudited 413,323 Profit/(loss) before Income tax expense (136,373) 557,441 Adjustments for 1,923,910 Depreciation on property, plant and equipment 1,468,116 1,431, ,338 Amortization of Intangible Assets 119, , ,574 Provision for retiring gratuity 291, ,188 (41,030) Net unrealised gain on translation of foreign currency (18,492) (13,396) 753,257 Net finance costs 620, ,776 4,021 Loss on disposal of property, plant and equipment - 4,430 (35,590) Debtors / Creditors write back (18,425) (16,763) (5,396) Provision / (reversal) of provision for bad and doubtful debts 29, ,191 Provision / (reversal) of slow moving inventories (55,089) 15,253 3,678,598 Operating profit before working capital changes 2,300,700 2,941,228 (17,498) (Increase)/decrease in trade and other receivables 135,355 (913,952) (77,695) (Increase)/decrease in advances and prepayments 703,931 (381,651) (1,315,884) (Increase)/decrease in inventories 473,600 (715,082) 705,551 Increase in trade and other payables and other non financial liabilities 1,050, ,497 2,973,072 Cash flows from operations 4,664,265 1,701,040 (57,632) Retiring gratuity paid (118,419) (45,981) (725,671) Interest paid (591,066) (563,776) (273,653) Economic service charge paid (142,538) (74,429) 1,916,116 Net cash flows from operating activities 3,812,242 1,016,854 Cash flows used in investing activities (4,532,477) Purchase and construction of property, plant and equipment (2,039,320) (2,676,827) 11,346 Proceeds from disposal of property, plant and equipment - 10,938 - Purchase of Intangible Assets (48,234) - - Interest received 1,027 - (4,521,131) Net cash used in investing activities (2,086,527) (2,665,889) Cash flows from / (used in) financing activities 8,000,000 Proceeds from long term loans - 6,500,000 (5,060,633) Repayment of term loans (1,853,654) (4,614,996) 2,939,367 Net cash flows from /(used in) financing activities (1,853,654) 1,885, ,353 Net increse /(decrease) in cash and cash equivalents (127,939) 235,969 (10,001,983) Cash and cash equivalents at the beginning of the year (9,667,630) (10,001,983) (9,667,630) Cash and cash equivalents at the end of the period - Note A (9,795,569) (9,766,014) Note A Analysis of cash and cash equivalents 1,466,049 Cash and bank balances 227,885 1,074,663 (11,133,679) Short term borrowings (10,023,454) (10,840,677) (9,667,630) (9,795,569) (9,766,014)

8 Notes to the Financial Statements 7 1. These interim financial statements which have not been audited, comply with the Sri Lanka Accounting Standard LKAS 34-Interim financial reporting and they also provide the information required by the Colombo Stock Exchange. 2. The accounting policies adopted in theses financial statements are consistent with the Accounting policies set out in the Annual Report for the year ended Contingent liability as at 31st December 2017, on bills discounted amounted to USD 69, There were no material events that took place subsequent to the reporting date, which require disclosure in these Financial Statements.

9 8 Hayleys Fabric PLC STATEMENT OF FINANCIAL POSITION TRANSLATED INTO LKR As at As at As at LKR '000 LKR '000 LKR '000 Audited Unaudited Unaudited ASSETS Non-Current Assets 3,784,739 Property, plant and equipment 3,913,131 3,622,323 38,055 Intangible assets 27,326 46,584 3,822,794 3,940,457 3,668,907 Current Assets 1,725,335 Inventories 1,673,965 1,627,157 1,066,532 Trade receivables 1,014,395 1,190, ,017 Other receivables 211, , ,233 Advances and prepayments 80, , ,684 Cash and cash equivalents 35, ,983 3,377,801 3,015,349 3,265,723 7,200,595 Total Assets 6,955,806 6,934,630 EQUITY AND LIABILITIES Capital and Reserves 1,968,193 Stated capital 1,968,193 1,968, ,026 Revaluation reserve 223, ,527 (5,378) Retained losses (26,515) 7, ,266 Exchange fluctuation reserve 541, ,150 2,707,107 Total Equity 2,707,227 2,674,475 Non-Current Liabilities 956,576 Interest bearing loans and borrowings 600, , ,760 Deferred tax liabilities 185, , ,143 Retirement benefit obligations 364, ,779 1,478,479 1,150,350 1,410,014 Current Liabilities 814,666 Trade and other payables 970, , ,128 Current portion of interest bearing loans and borrowings 439, ,458 6,990 Amounts due to Hayleys PLC 8,206 6,924 4,873 Income tax payable 1,180 9, ,481 Other current non financial liabilities 123, ,246 1,721,871 Interest bearing loans and borrowings 1,555,139 1,644,097 3,015,009 3,098,229 2,850,142 7,200,595 Total Equity and Liabilities 6,955,806 6,934,630 The financial statements prepared and presented in US Dollars reflect the economic substance of underlying events and circumstances of the enterprise. The supplementary information in SL Rupees is presented for convenience purposes only. The statements presented in SL Rupees are not a full set of financial statements and are not purported to comply with Sri Lanka Accounting Standards. They represent selected information taken from the US Dollar financial statements, translated into SL Rupees generally using the principles set out in Sri Lanka Accounting Standards (LKAS) 21 for the translation of financial statements to a presentation currency from a measurement currency. Revenue and costs are converted using the average exchange rate for the period. Assets and liabilities are converted using the exchange rate at the end of the period. The revenue reserves incorporates the profit for the period reflected in the income statements. In accordance with advice received from the Urgent Issue Task Force of the Institute of Chartered Accountants of Sri Lanka, stated capital is represented at it's original SL Rupee value. Following exchange rates were used to convert the financial statements into LKR. 9 months 3 months 9 months 3 months Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position

10 9 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME TRANSLATED INTO LKR Year ended 9 months to 9 months to 3 months to 3 months to variance variance LKR '000 LKR '000 LKR '000 % LKR '000 LKR '000 % Audited Unaudited Unaudited Unaudited Unaudited 8,332,832 Revenue 6,571,852 6,325, ,145,460 2,059, (7,358,588) Cost of Sales (5,894,887) (5,567,988) +6 (1,915,791) (1,841,816) ,244 Gross Profit 676, , , , ,340 Other Operating Income 2,856 1, (10) +131 (706,124) Administrative Expenses (528,880) (517,840) +2 (187,898) (161,675) +16 (70,801) Distribution Expenses (57,558) (52,782) +9 (14,078) (13,641) +3 (603) Other Expenses (140,040) Net Financing Costs (114,520) (106,039) +8 (38,502) (31,138) ,016 Profit /(Loss) Before Tax (21,137) 83, (10,807) 11, ,545 Income Tax (Expense)/Reversal - (7,488) ,561 Profit/(Loss) for the period (21,137) 75, (10,807) 12, Other Comprehensive Income 6,144 Surplus on revaluation of land - - (12,489) Actuarial loss on defined benefit plans - - 1,499 Income tax effect ,715 Total Comprehensive Income /(Loss), Net of Tax (21,137) 75,552 (10,807) 12,149