CEYLON GUARDIAN INVESTMENT TRUST PLC

Transcription

1 INTERIM REPORT FOR THE NINE MONTHS ENDED 31ST DECEMBER 2017 A CARSON CUMBERBATCH COMPANY

2 Dec Mar June Sep Dec Mar June Sep Dec Mar June Sept Dec Mar June Sept Dec Mar June Sep Dec CEYLON GUARDIAN INVESTMENT TRUST PLC Managers Review For the period ended 31st December 2017 Financials and portfolio performance The Ceylon Guardian portfolio is segmented into discretionary and non discretionary components. The discretionary component of the portfolio is made up of a trading portfolio and long term portfolio, which are actively managed. The non- discretionary component refers to the strategic holding. The discretionary portfolio has provided an impressive performance of 7.78% CAGR over a five-year period compared to the ASPI performance of 2.54%. The three year return for the portfolio was 1.35% CAGR thereby outperforming the ASPI which gave a return of -4.44% CAGR. The superior performance relative to market is a result of a successfully implemented value investing strategy practiced by Guardian Five Year Track Record Guardian Discretionary Portfolio Guardian ASPI S&P20 CAGR : 7.78 % CAGR : 3.54 % CAGR : 2.54 % 2012/ / / / / /18 The discretionary portfolio maintained its equity exposure for the quarter ending Dec 2017 with overall market valuations remaining attractive. The portfolio bought shares to the value of Rs. 737 million whilst selling Rs. 713 million. Buying was focused mostly on Central Finance PLC and Peoples Leasing and Finance PLC which are leading companies within the leasing sector. Both companies have seen share prices fall to attractive levels due to higher interest rates and adverse taxation policies on vehicles. With interest rates coming off their peaks the net interest margins are expected to improve. We continue to monitor the non-performing loans and provisioning given the challenging macro-economic conditions. The portfolio also subscribed to the Sampath Bank rights issue which was attractively priced. The bank has been performing well with strong ROE s led by above sector average loan growth and cost rationalization. The portfolio was also rationalized by reducing exposures to banking sector shares which have come up with numerous rights issues in order to raise capital to fulfil Basel III requirements. The discretionary portfolio remains largely exposed to the banking, finance & insurance sector, food & beverage sector and diversified sector. -Page 1-

3 As at As at Dec Mar-17 Change % Dec-17 (Dividend adjusted) Dividend adjusted performance Discretionary portfolio (Rs. 000) * 13,792,358 13,078, % 14,199, % Total Portfolio (Rs. 000)* 18,094,610 18,396, % 18,502, % ASPI (Points) 6, , % 5.07% S&P 20 (Points) 3, , % 6.77% *After adding back the total cash outflow from the distribution of dividend by the Group which was Rs Mn during the period. Guardian continues to practice a value driven investment strategy with stock investing based on medium to long term outlooks. The total portfolio depreciated from Rs Bn to Rs Bn during the period of review. Ceylon Guardian Investment Trust PLC reported a consolidated profit after tax of Rs Mn for the period of nine months ended 31 st December 2017, compared to a profit of Rs Mn reported for the same period last year. As at end December 2017 the Group s earnings per share stood at Rs and Net Asset Value when the portfolio is valued at market prices was Rs per share, a decrease of 1.9% for the period. This highlights a steep discount of 50% in the traded market price per share of Rs As at 31/12/ /03/2017 Change % ASPI 6, , NAV per share (Rs.) (1.9) Market price per share (Rs.) (29.0) Discount of NAV to market price per share 50% 31% Update on the market The All Share Price Index fell by 1.07% for the quarter ending Dec 2017 with largest detractors being Nestle and Sri Lanka Telecom while top contributors were Ceylon Tobacco and Dialog Axiata. Foreign activity was mixed in the quarter with net foreign buying in October and December of Rs. 2.2 billion and selling in November of Rs. 1.7 billion. Market activity began to taper down leading up to year-end with uncertainty prevailing on announced fiscal budgetary items and seasonal factors. Market earnings expectations for the next financial year is expected recover to approximately 12% through financial services sector and improved consumption patterns. However, the earnings forecast may be reduced after taking into account the debt repayment levy on financial services. The historical PER of the Colombo Stock Exchange was recorded at 10.6x as at 31 st December 2017 revealing that the CSE remains undervalued compared to historical multiples. As of the end of Dec-17 the macro-economy is on a better footing with much improved gross official reserves due to stronger capital inflows and less demand pressures within the economy. Fiscal consolidation continues to gain momentum but may be tested with the upcoming local government elections. Strengthening trade with key countries through trade agreements will offer the Sri Lankan economy access to different markets and can improve economic activity going forward. However, concerns still remain with respect to overall debt levels and need for foreign investment. -Page 2-

4 Private Equity and Unit Trust Deal flow for the 9 months ending December 2017 slowed down relative to last year. The few deals evaluated did not meet the investment criteria and hence no new investments were made during the period. The company is in the process of exploring a few opportunities and further information will be provided if these materialize into formal engagements. LVL Energy Fund Ltd, the largest private equity position of Rs Mn was listed on the Colombo Stock Exchange on 9th January An exit which was being worked out for another position in the private equity portfolio did not materialize, as the potential acquirer was unable to raise the requisite funds. The unit trust business, Guardian Acuity Asset Management, through our Joint Venture with Acuity Partners has grown to Rs. 7.3 billion as at December 2017 from Rs. 4.0 billion on 31 st March Much of the growth has been derived from the two money market funds. However, with the corporate tax shelter available being withdrawn we will see less participation from corporates who dominate the AUM (Assets Under Management). As a result, our marketing strategy will be more focused on individual investors utilizing the unit trusts with less corporate participation. Guardian Fund Management Limited Investment Managers 9 th February Page 3-

5 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - GROUP (All figures are in Sri Lankan Rupees '000) Three months ended Nine months ended 31st December 31st December Change % Change % Audited Revenue 291, , , , ,742,298 Impairment loss on available for sale financial assets - (50,615) (100) (102,209) (80,132) 28 (198,826) Net change in fair value of fair value through profit or loss financial assets (51,623) (57,783) (11) 51, ,793 (54) (51,206) Profit on investment activities 239,833 6,858 3, , , ,492,266 Other operating income Administrative and other operating expenses (51,181) (57,334) (11) (167,759) (155,364) 8 (217,726) Profit / (loss) from operations 188,658 (50,476) (474) 493, , ,274,540 Net finance income/(expense) 2, ,547 (631) 5,256 (112) 173 Profit / (loss) from operations after net finance income/(expense) 191,376 (50,311) (480) 492, , ,274,713 Share of profit of equity accounted investee net of tax 1, ,646 2, ,747 Profit / (loss) before taxation 193,144 (49,828) (488) 502, , ,277,460 Income tax expense (8,070) (1,352) 497 (26,240) (6,916) 279 (21,126) Profit / (loss) for the period 185,074 (51,180) (462) 475, , ,256,334 - Other comprehensive income Items that will never be reclassified to profit or loss Actuarial gain on employee benefit obligation ,520 Items that are or may be reclassified to profit or loss Net change in fair value of available for sale financial assets 118,668 (174,926) (168) (255,029) (432,817) (41) (1,180,280) Transfer of net realized (gains) / losses on disposal of available for sale financial assets (55,113) 76,449 (172) (138,624) 74,831 (285) (696,487) Share of other comprehensive income / (expense) of equity accounted investee net of tax (100) (5,756) 1,683 (442) 2,505 Net exchange difference on translation of foreign operations (1,332) 319 (518) 7,714 6, ,857 Other comprehensive income / (expense) for the period 62,223 (97,497) (164) (391,695) (349,464) 12 (1,857,885) Total comprehensive income / (expense) for the period 247,297 (148,677) (266) 84,290 3,721 2,165 (601,551) Profit attributable to: Equity holders of the parent 141,108 (46,652) (402) 361, , ,028,750 Non controlling interest 43,966 (4,528) (1,071) 114,518 76, , ,074 (51,180) (462) 475, , ,256, Total comprehensive income attributable to: Equity holders of the parent 209,428 (108,948) (292) 63,624 22, (469,811) Non controlling interest 37,869 (39,729) (195) 20,666 (19,216) (208) (131,740) 247,297 (148,677) (266) 84,290 3,721 2,165 (601,551) Earnings per share (Rs.) 1.59 (0.53) Dividend per share (Rs.)* Change % represent the percentage change in current period's results compared to the comparative period of previous year. * Dividend per share is based on the proposed/interim dividends. Figures in brackets indicate deductions. - Page 4 -

6 STATEMENT OF FINANCIAL POSITION (All figures are in Sri Lankan Rupees '000) Group Company As at 31st December Audited Audited ASSETS Non-current assets Property, plant and equipment 2,885 6,695 6, Intangible assets 253, , , Investment in subsidiaries ,141,799 2,141,799 2,141,799 Investment in equity accounted investee 39,875 35,516 36,929 35,000 35,000 35,000 Available for sale financial assets 13,977,481 15,949,656 13,821,686 4,229,506 4,003,596 3,755,459 Total non-current assets 14,273,644 16,223,784 14,096,543 6,406,305 6,180,395 5,932,258 Current assets Trade and other receivables 22,416 33,799 94, , ,276 Current tax assets 28,835 14,466 19,269 18,361 13,184 14,303 Fair value through profit or loss financial assets 2,887,116 2,801,351 3,136, , , ,399 Investment in fixed deposits 989, Cash and cash equivalents 247, ,249 1,455,298 67,050 77, ,153 Total current assets 4,175,897 3,166,865 4,705, , , ,131 Total assets 18,449,541 19,390,649 18,802,188 6,723,665 6,509,971 6,660,389 - EQUITY AND LIABILITIES Equity Stated capital 1,128,726 1,128,726 1,128,726 1,128,726 1,128,726 1,128,726 Capital reserves 324, , , , , ,660 Revenue reserves 13,660,841 14,440,306 13,946,582 5,348,486 5,134,545 5,283,876 Total equity attributable to equity holders of the parent 15,114,252 15,898,651 15,405,749 6,685,872 6,471,931 6,621,262 Non controlling interest 3,234,487 3,390,091 3,214, Total equity 18,348,739 19,288,742 18,620,605 6,685,872 6,471,931 6,621,262 - Non-current liabilities Employee benefits 5,400 11,435 10, Total non-current liabilities 5,400 11,435 10, Current liabilities Trade and other payables 84,361 78, ,994 32,010 28,631 26,867 Current tax liabilities 3, Bank overdraft 7,517 12,015 17,052 5,783 9,409 12,260 Total current liabilities 95,402 90, ,104 37,793 38,040 39,127 Total liabilities 100, , ,583 37,793 38,040 39,127 Total equity and liabilities 18,449,541 19,390,649 18,802,188 6,723,665 6,509,971 6,660, Net assets per ordinary/deferred share - Rs The Statement of Financial Position as at 31st December 2017 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flow for the period then ended as disclosed in pages 4 to 9 have been drawn up from unaudited accounts. I certify that these financial statements comply with the requirements of the Companies Act No. 07 of (Sgd). V. R. Wijesinghe Head of Finance Carsons Management Services (Private) Limited. Approved & Signed on behalf of the Investment Managers, Approved & Signed on behalf of the Board, (Sgd). (Sgd). (Sgd). (Sgd). K. Selvanathan M. A. R. C. Cooray (Mrs.) D. C. R. Gunawardena Director Chairperson Director Guardian Fund Management Limited 09th February Page 5 -

7 STATEMENT OF CHANGES IN EQUITY - GROUP (All figures are in Sri Lankan Rupees '000) Attributable to equity Non Stated Capital Revenue holders of controlling Total capital reserves reserves the parent interest equity Balance as at 1st April ,128, ,936 14,680,634 16,137,296 3,414,692 19,551,988 Profit for the year - - 1,028,750 1,028, ,584 1,256,334 Other comprehensive income / (expense) for the year - 2,505 (1,501,066) (1,498,561) (359,324) (1,857,885) Total comprehensive income / (expense) for the year - 2,505 (472,316) (469,811) (131,740) (601,551) Cash dividend - - (266,341) (266,341) (62,045) (328,386) Effect due to change in shareholdings (7,167) (6,820) Forfeiture of unclaimed dividends - - 4,258 4,258 1,116 5,374 Balance as at 31st March 2017 (Audited) 1,128, ,441 13,946,582 15,405,749 3,214,856 18,620,605 Balance as at 1st April ,128, ,441 13,946,582 15,405,749 3,214,856 18,620,605 Profit for the period , , , ,985 Other comprehensive expense for the period - (5,756) (292,087) (297,843) (93,852) (391,695) Total comprehensive income / (expense) for the period - (5,756) 69,380 63,624 20,666 84,290 Cash dividend - - (355,121) (355,121) (1,035) (356,156) Balance as at 31st December 2017 (Unaudited) 1,128, ,685 13,660,841 15,114,252 3,234,487 18,348, Balance as at 1st April ,128, ,936 14,680,634 16,137,296 3,414,692 19,551,988 Profit for the year , ,733 76, ,185 Other comprehensive income / (expense) for the period - 1,683 (255,479) (253,796) (95,668) (349,464) Total comprehensive income / (expense) for the period - 1,683 21,254 22,937 (19,216) 3,721 Effect due to change in shareholdings - - 4,759 4,759 (5,385) (626) Cash dividend - - (266,341) (266,341) - (266,341) Balance as at 31st December 2016 (Unaudited) 1,128, ,619 14,440,306 15,898,651 3,390,091 19,288,742 - Page 6 -

8 STATEMENT OF CASH FLOWS - GROUP (All figures are in Sri Lankan Rupees '000) For the nine months ended 31st December Audited Cash flows from operating activities Profit before taxation 502, ,101 1,277,460 Adjustments for: Share of profit of equity accounted investee net of tax (9,646) (2,156) (2,747) Depreciation on property, plant and equipment 1,882 2,425 3,224 Amortisation of intangible assets Provision for employee benefit 1,853 1,907 2,471 Gain from disposal of property, plant and equipment (6) - - Net finance (income) / expense 631 (5,256) (173) Impairment loss on available for sale financial assets 102,209 80, ,826 Net change in fair value of fair value through profit or loss financial assets (51,948) (113,793) 51,206 Operating profit before working capital changes 547, ,360 1,530,267 (Increase) / decrease in trade and other receivables 71,766 21,901 (38,482) Net increase in investments (349,929) (692,557) (702,606) Net increase in investment in fixed deposits (989,787) - - Decrease in trade and other payables (18,212) (78,907) (59,728) Cash generated from / (used in) operations (738,221) (426,203) 729,451 Employee benefit paid (6,933) - - Income tax paid (32,340) (12,121) (31,076) Net cash generated from / (used in) operating activities (777,494) (438,324) 698,375 Cash flows from investing activities Acquisition of property, plant and equipment (212) (306) (421) Proceeds from disposal of property, plant and equipment 1, Acquisition of intangible assets (22,227) - - Dividend received from jointly controlled entity Finance income 292 5, Net cash generated from / (used in) investing activities (19,740) 5, Cash flows from financing activities Dividend paid (348,955) (261,669) (261,958) Dividend paid to non-controlling interest (58,622) (51,278) (51,302) Redemption of units - (626) (6,820) Finance expense paid (923) (158) (468) Net cash used in financing activities (408,500) (313,731) (320,548) Net increase / (decrease) in cash and cash equivalents (1,205,734) (746,947) 378,047 Cash and cash equivalents at the beginning of the period 1,438,246 1,045,342 1,045,342 Net exchange differences on translation of foreign operations 7,714 6,839 14,857 Cash and cash equivalents at the end of the period 240, ,234 1,438,246 Statement of cash and cash equivalents Short-term deposits 198, ,928 1,432,674 Cash at bank 48,922 27,321 22,624 Total cash and cash equivalents 247, ,249 1,455,298 Bank overdrafts (7,517) (12,015) (17,052) Net cash and cash equivalents for the purpose of statement of cash flows 240, ,234-1,438,246 - Figures in brackets indicate deductions. - Page 7 -

9 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY (All figures are in Sri Lankan Rupees '000) Three months ended Nine months ended 31st December 31st December Change % Change % Audited Revenue 66,833 24, , , ,249 Impairment loss on available for sale financial assets (7,793) (25,886) (70) (17,255) (41,510) (58) (103,611) Net change in fair value of fair value through profit or loss financial assets (8,956) (15,758) (43) 5,224 16,047 (67) 1,870 Profit / (loss) on investment activities 50,084 (17,146) (392) 182, , ,508 Administrative and other operating expenses (21,091) (25,637) (18) (74,251) (64,841) 15 (90,802) Profit / (loss) from operations 28,993 (42,783) (168) 108,225 54, ,706 Finance expense (56) (100) (56) Profit / (loss) before taxation 28,993 (42,783) (168) 108,225 54, ,650 Income tax expense (247) (231) 7 (1,729) (2,270) (24) (3,678) Profit / (loss) for the period 28,746 (43,014) (167) 106,496 52, ,972 - Other comprehensive income Items that are or may be reclassified to profit or loss Net change in fair value of available for sale financial assets 63,554 (62,338) (202) 362, ,282 (19) 356,164 Transfer of realized (gains) / losses on disposal of available for sale financial assets (17,244) 31,437 (155) (48,960) 28,393 (272) 6,722 Other comprehensive income / (expense) for the period 46,310 (30,901) (250) 313, ,675 (34) 362,886 Total comprehensive income / (expense) for the period 75,056 (73,915) (202) 419, ,768 (21) 676,858 Earnings per share (Rs.) 0.32 (0.48) Dividend per share (Rs.)* Change % represent the percentage change in current period's results compared to the comparative period of previous year. * Dividends per share is based on the proposed / interim dividends. Figures in brackets indicate deductions. - Page 8 -

10 STATEMENT OF CHANGES IN EQUITY - COMPANY (All figures are in Sri Lankan Rupees '000) Stated Capital Revenue Total capital reserves reserves equity Balance as at 1st April ,128, ,660 4,871,118 6,208,504 Profit for the year , ,972 Other comprehensive income for the year , ,886 Total comprehensive income for the year , ,858 Cash dividend - - (266,341) (266,341) Forfeiture of unclaimed dividends - - 2,241 2,241 Balance as at 31st March 2017 (Audited) 1,128, ,660 5,283,876 6,621,262 Balance as at 1st April ,128, ,660 5,283,876 6,621,262 Profit for the period , ,496 Other comprehensive income for the period , ,235 Total comprehensive income for the period , ,731 Cash dividend - - (355,121) (355,121) Balance as at 31st December 2017 (Unaudited) 1,128, ,660 5,348,486 6,685,872 Balance as at 1st April ,128, ,660 4,871,118 6,208,504 Profit for the period ,093 52,093 Other comprehensive income for the period , ,675 Total comprehensive income for the period , ,768 Cash dividend - - (266,341) (266,341) Balance as at 31st December 2016 (Unaudited) 1,128, ,660 5,134,545 6,471,931 CEYLON GUARDIAN INVESTMENT TRUST PLC STATEMENT OF CASH FLOWS - COMPANY (All figures are in Sri Lankan Rupees '000) For the nine months ended 31st December Audited Cash flows from operating activities Profit before taxation 108,225 54, ,650 Adjustments for: Finance expense Impairment loss on available for sale financial assets 17,255 41, ,611 Net change in fair value of fair value through profit or loss financial assets (5,224) (16,047) (1,870) Operating profit before working capital changes 120,256 79, ,447 Increase / (decrease) in trade and other receivables 144, ,399 (32,189) Net (increase) / decrease in investments 34,047 (143,243) (287,994) Increase / (decrease) in trade and other payables (1,023) (409) 357 Cash generated from operations 298,116 46,629 99,621 Income tax paid (5,787) (4,011) (6,538) Net cash generated from operating activities 292,329 42,618 93,083 Cash flows from financing activities Dividend paid (348,955) (261,669) (261,958) Finance expense paid - (56) (56) Net cash used in financing activities (348,955) (261,725) (262,014) Net decrease in cash and cash equivalents (56,626) (219,107) (168,931) Cash and cash equivalents at the beginning of the period 117, , ,824 Cash and cash equivalents at the end of the period 61,267 67, ,893 Statement of cash and cash equivalents Short-term deposits 58,094 71, ,593 Cash at bank 8,956 5,982 1,560 Total cash and cash equivalents 67,050 77, ,153 Bank overdraft (5,783) (9,409) (12,260) Net cash and cash equivalents for the purpose of statement of cash flows 61,267 67, , Figures in brackets indicate deductions. - Page 9 -

11 NOTES TO THE INTERIM FINANCIAL STATEMENTS (All figures are in Sri Lankan Rupees '000 unless otherwise stated). 1 Basis of Preparation of Interim Financial Statements The Interim Financial Statements of the Company and the Group have been prepared in consistence with the accounting policies and methods applied for the year ended 31st March These Interim Financial Statements are in compliance with Sri Lanka Accounting Standard - "Interim Financial Reporting" ( LKAS 34 ). Further, the provision of the Companies Act No. 7 of 2007 have been considered in preparing the Interim Financial Statements of the Company and the Group. 2 Revenue Group Company For the nine months ended Dividend income 216, ,116 71,362 91,910 Interest income 108,757 32,353 8,827 13,004 Net gain from disposal of fair value through profit or loss financial assets 32,771 63,062 11,944 12,906 Net gain from disposal of available for sale financial assets 344,579 70, ,374 26,903 Portfolio Management fees 8,417 7, , , , , Profit on portfolio activities The Group recorded a profit of Rs Mn and the Company recorded a profit of Rs Mn on investments activities for the nine months ended 31st December Valuation of investment portfolio Fair value Fair value Fair value 4.1 Group As at As at As at Summary of investment portfolio Available for sale financial assets (4.1.1) 13,977,481 15,949,656 13,821,686 Fair value through profit or loss financial assets (4.1.2) 2,887,116 2,801,351 3,136,896 Investment in fixed deposits 989, ,854,384 18,751,007 16,958, Available for sale financial assets Fair Fair Fair value value value as at as at as at Sector Bank, Finance & Insurance 5,220,373 4,444,581 4,155,999 Beverage, Food & Tobacco 1,231,465 1,095, ,140 Constructions & engineering 152, , ,120 Diversified 1,007,723 2,255,915 1,094,753 Footwear & Textiles 231, , ,228 Hotels & Travels 142, , ,907 Manufacturing 582, , ,730 Oil Palms 4,302,252 5,722,710 5,318,034 Telecommunications 806, , ,017 Unit trusts 42,664 41,763 40,822 13,718,663 15,672,581 13,520,750 Unquoted investments 258, , ,936 Total investment in available for sale financial assets 13,977,481 15,949,656 13,821, Fair value through profit or loss financial assets Fair Fair Fair value value value as at as at as at Sector Bank, Finance & Insurance 742, , ,605 Beverage, Food & Tobacco 21,871 45,451 20,172 Constructions & engineering 73, ,177 95,774 Diversified 424, , ,187 Footwear & Textiles 15,363 17,976 14,787 Healthcare 49,476 35,620 49,077 Hotels & Travels 42,243 66,121 50,449 Land & Property 12,320 10,000 14,140 Manufacturing 308, , ,991 Power & Energy 44,645 32,285 21,332 Telecommunications 90,236 79,161 78,393 Unit trusts 1,061, ,397 1,414,989 Total investment in fair value through profit or loss financial assets 2,887,116 2,801,351 3,136, The total fair value of the investment portfolio of the Group including cash and cash equivalents amounts to Rs Bn as at 31st December 2017 ( Rs Bn). - Page 10 -

12 NOTES TO THE INTERIM FINANCIAL STATEMENTS (All figures are in Sri Lankan Rupees '000 unless otherwise stated). 4 Valuation of Investment Portfolio (Continued) Fair Fair Fair 4.2 Company value value value As at as at as at Summary of investment portfolio Available for sale financial assets (4.2.1) 4,229,506 4,003,596 3,755,459 Fair value through profit or loss financial assets (4.2.2) 231, , ,399 4,461,015 4,240,174 4,193, Available for sale financial assets Fair Fair Fair value value value As at as at as at Sector Bank, Finance & Insurance 2,190,550 1,863,935 1,731,428 Beverage, Food & Tobacco 925, , ,474 Constructions & engineering 50,760 53,568 51,408 Diversified 354, , ,663 Footwear & Textiles 116, , ,019 Hotels & Travels 75, ,682 90,017 Manufacturing 262, , ,809 Telecommunications 201, , ,816 Unit Trusts 21,332 20,882 20,411 4,199,092 3,976,419 3,725,045 Unquoted investments 30,414 27,177 30,414 Total investments in available for sale financial assets 4,229,506 4,003,596 3,755, Fair value through profit or loss financial assets Fair Fair Fair value value value As at as at as at Sector Bank, Finance & Insurance 103,270 93,800 91,332 Diversified 75, ,690 72,664 Healthcare 21,700 6,500 21,525 Hotels & Travels 7,430 10,449 9,288 Power & Energy 5,758 6,519 5,963 Telecommunications 13,000 10,500 11,300 Unit trusts 4,903 1, ,327 Total investments in fair value through profit or loss financial assets 231, , , As at As at As at 5 Price Index movements All Share Price Index (points) 6,369 6,228 6,062 S&P SL 20 Index (points) 3,672 3,496 3,439 6 Events after the reporting period Subsequent to the reporting period, no circumstances have arisen which would require adjustments to or disclosure in the financial statements. 7 Commitments and contingencies 7.1 Capital expenditure commitments No material capital commitments exist as at the reporting date. 7.2 Contingencies There were no material contingent liabilities as at the reporting date. 8 Comparative Figures Comparative figures have been rearranged where necessary to conform to the classification and presentation as at 31st December Page 11 -

13 NOTES TO THE INTERIM FINANCIAL STATEMENTS (All figures are in Sri Lankan Rupees '000 unless otherwise stated). 9 Liabilities for Expenditure There were no liabilities for management fees or any similar expenditure not provided for in the interim financial statements. 10 Stated Capital Stated Capital of the Company amounted to Rs.1,128.7Mn which consists of 82,978,868 Ordinary Shares and 5,801,487 Fully paid Deferred Shares. 11 Related party transactions Group Company For the nine months ended 31st December Transactions with the parent company Dividend paid 246, , , ,575 Transactions with subsidiaries Dividends received - - 5,423 - Portfolio management fee paid ,278 10,333 Business development fee paid ,000 15,000 Transactions with jointly controlled entity Portfolio management fee received 4,800 3, Transactions with affiliate companies Dividends received - 20, Expenses on CSR activities - 5, Receiving of services 28,264 26,384 9,766 8, Twenty Major Shareholders as at 31st December Ordinary shares Name of the Shareholder No. of Shares % 1 Carson Cumberbatch PLC A/C No.2 55,723, Employees Provident Fund 2,969, Thurston Investments Limited 2,480, GF Capital Global Limited 1,617, Mellon Bank N. A. / Commonwealth of Massachusetts 1,374, Miss G.I.A. De Silva 877, Mr. G.J.W. De Silva 877, Mrs. M.L. De Silva 866, Mr. H.A. Van Starrex 737, Miss. M.P. Radhakrishnan 686, Miss. A. Radhakrishnan 686, Mr. R. Maheswaran 685, Mr. K. C. Vignarajah 623, Employees Trust Fund Board 490, The Ceylon Desiccated Coconut and Oil Company (Pvt) Limited 386, People's Leasing & Finance PLC/Mr. M. A. N. Yoosufali 386, Miss. R. H. Abdulhussein 358, Miss. G. N. A. De Silva 353, Sampath Bank PLC /Mr. Subramaniam Vasudevan 287, Mr. O. D. Liyanage 267, Public Holding The Company is in compliance with the Minimum Public Holding requirements for Companies listed on the Main Board as per Rule a. of the Listing Rules of Colombo Stock Exchange, under Option 5, i.e. Float-adjusted Market Capitalization of less than Rs.2.5 Billion with 500 Public Shareholders and a Public Holding percentage of 20%. The Company s Public Holding as at 31st December 2017; Market Capitalization of the Public Holding Rs Billion Percentage of public holding 32.71% Number of public shareholders 1, Directors Shareholding as at 31st December 2017 No. of shares Mrs. M.A.R.C. Cooray - Mr. D. C. R. Gunawardena 257 Mr. V. M. Fernando - Mr. K. Selvanathan - Mr. C. W. Knight - Mr.T. C. M. Chia - 15 Investor Information Market Performance - Ordinary Shares For the three months ended Market value per share (Rs.) Highest price per share (Rs.) Lowest price per share (Rs.) Market capitalization (Rs. thousands) 7,053,204 - Page 12 -

14 Corporate Information Name of Company Ceylon Guardian Investment Trust PLC (A Carson Cumberbatch Company) Domicile and Legal Form Ceylon Guardian Investment Trust PLC is a Public Quoted Company with limited liability domiciled in Sri Lanka. The Company was incorporated in Sri Lanka in Company Registration No. PQ 52 Principal Activity and Nature of Operations During the period, the principal activity of the Company was holding and managing of an investment portfolio. Parent and Ultimate Parent Entities In the opinion of the Director s Carson Cumberbatch PLC is the Parent Company of Ceylon Guardian Investment Trust PLC and Bukit Darah PLC is the Ultimate Parent and Controlling entity of Ceylon Guardian Investment Trust PLC Directors Mrs.M.A.R.C. Cooray Mr. D. C. R. Gunawardena Mr.V. M. Fernando Mr.K. Selvanathan Mr. C.W. Knight Mr.T.C.M. Chia Number of Employees The Company did not have any employees of its own during the period under review. Bankers Standard Chartered Bank HSBC Commercial Bank of Ceylon PLC Deutsche Bank AG Colombo Hatton National Bank PLC Auditors Messrs. KPMG Chartered Accountants, No. 32A, Sir Mohamed Macan Markar Mawatha, Colombo 3. Investment Managers Guardian Fund Management Limited No. 61, Janadhipathi Mawatha, Colombo 1. Tele: Fax: Managers & Secretaries Carsons Management Services (Private) Limited, No. 61, Janadhipathi Mawatha, Colombo 1. Tele: Fax: Registered Office and Principal Place of Business No. 61, Janadhipathi Mawatha, Colombo 1. Tele: Fax: Corporate Website