SATHOSA MOTORS PLC INTERIM REPORT NINE MONTHS ENDED 31ST DECEMBER 2017 ISUZU

Transcription

1 SATHOSA MOTORS PLC INTERIM REPORT NINE MONTHS ENDED 31ST DECEMBER 2017 ISUZU

2 CONTENTS Page 1. Statement of Comprehensive Income 2. Statement of Financial Position 3. Statement of Changes in Equity 4. Cash flow Statement 5. Explanatory Notes 6. Segment Reporting 7. Shareholders information

3 SATHOSA MOTORS PLC STATEMENT OF COMPREHENSIVE INCOME Page 01 Quarter ended 31 December Nine months ended 31st December Quarter ended 31st December Nine months ended 31st December Unaudited Unaudited Variance Unaudited Unaudited Variance Unaudited Unaudited Variance Unaudited Unaudited Variance Gross Turnover 2,327,283 1,259,572 85% 6,161,393 3,866,323 59% 1,201,062 1,072,050 12% 3,803,351 3,062,530 24% NBT (3,914) (3,468) (10,614) (15,014) (1,701) (1,306) (5,237) (4,739) Net Turnover 2,323,369 1,256,104 85% 6,150,779 3,851,309 60% 1,199,362 1,070,744 12% 3,798,114 3,057,791 24% Cost of Sales (1,950,196) (1,041,870) (5,065,356) (3,169,118) (959,302) (919,624) (3,008,342) (2,623,122) Gross Profit 373, ,234 74% 1,085, ,191 59% 240, ,120 59% 789, ,669 82% Other Income 19,809 23,030-14% 53,928 81,803-34% 17,988 17,830 1% 51,073 50,072 2% Administrative Expenses (158,469) (140,441) 13% (446,022) (411,986) 8% (80,590) (70,001) 15% (210,335) (198,787) 6% Selling & Distribution Expenses (33,919) (28,952) 17% (75,018) (84,739) -11% (28,278) (14,109) 100% (52,491) (29,142) 80% Other Operating Expenses (144) (11) (146) (611) Results from operating Activities 200,450 67, % 618, , ,180 84,840 76% 578, , % Finance Expenses (48,277) (18,062) 167% (121,048) (63,721) (22,337) (3,128) 614% (45,642) (20,112) 127% Profit/(Loss) before Taxation 152,173 49, % 497, , ,843 81,712 55% 532, , % Income Tax Expenses (32,936) (18,254) (138,083) (52,875) 161% (32,936) (18,291) (138,083) (52,875) Profit/(Loss) after taxation 119,237 31, % 359, , % 93,907 63,421 48% 394, , % Other Comprehensive Income Employee benefit plan acturial gain Total comprehensive Income 119,237 31, , ,062 93,907 63, , ,825 Total attributable to : Equity holders of the parent 106,573 48, , ,942 93,907 63, , ,825 Non- controlling interest 12,664 (16,833) (17,631) (16,880) ,237 31, , ,062-93,907 63, , ,825 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Earnings per Share April to December The Board of Directors is responsible for the preparation and presentation of these financial statements. 2017/ /2017 Share Prices Rs. Rs. Lowest Highest Sgd S J S Perera Sgd T D Gunasekara Last Traded CHAIRMAN MANAGING DIRECTOR 23/01/2018

4 SATHOSA MOTORS PLC STATEMENT OF FINANCIAL POSITION Page 02 Rs. 000 As at As at As at As at As at As at 31/12/ /12/ /03/ /12/ /12/ /03/2017 Unaudited Unaudited Audited Unaudited Unaudited Audited ASSETS Non-Current Assets Property Plant & Equipment 1,059, , , , , ,094 Intangible Assets 1,080 2,324 2, Pre paid Lease Payment 53,979 69,055 65,286 5,229 5,305 5,286 Investment Property Investment in Subsidiary ,940 65, ,970 Investment in Debentures 620, , , , , ,378 1,734,812 1,210,173 1,249,510 1,657, ,990 1,012,728 Current Assets Inventories 2,045,860 1,219,569 1,885,018 1,061,978 1,003,729 1,385,582 Trade and Other Receivables 1,434, , , , , ,882 Amount due from Related Parties 6,385 7,616 4, Cash and Cash Equivalents 39,453 43,218 50,603 32,427 3,738 12,830 3,526,241 2,014,024 2,650,632 1,894,115 1,594,579 1,884,587 Total Assets 5,261,053 3,224,197 3,900,142 3,551,130 2,456,569 2,897,315 EQUITY AND LIABILITIES Share Capital and Reserves Stated Capital 115, , , , , ,924 Retained Earnings 1,651,270 1,359,223 1,365,110 1,655,755 1,334,226 1,351,967 Total equity attributable to equity holders of the the parent 1,767,194 1,475,147 1,481,034 1,771,679 1,450,150 1,467,891 Non controlling interest 260,452 90, , Total Equity 2,027,646 1,565,148 1,659,147 1,771,679 1,450,150 1,467,891 Non Current Liabilities Interest Bearing Borrowings 116, , , Asset Related Grants 6,143 6,362 6,143 6,143 6,362 6,143 Employee Benefit 30,967 27,416 29,818 21,737 21,224 20,588 Deferred Taxation 14,522 27,925 11,523 14,522 9,512 11, , , ,259 42,402 37,098 38,253 Current Liabilities Trade and Other Payables 1,164,659 1,056,348 1,469, , ,928 1,190,220 Amount due to Related Parties 167,328 21,056 11, Interest Bearing Borrowings 1,532,319 68, , , ,000 Dividend payable 3,120 2,408 3,120 2,408 Unclaimed Dividend - - 2, ,805 Income Tax Payable 91,237 36,394 9,593 91,099 6,381 9,454 Bank Overdraft 106, ,237 69,182 37, ,604 14,552 3,065,040 1,454,431 2,057,736 1,737, ,321 1,391,171 Total Liabilities 3,233,407 1,659,049 2,240,995 1,779,451 1,006,419 1,429,424 Total Equity and Liabilities 5,261,053 3,224,197 3,900,142 3,551,130 2,456,569 2,897,315 Rs. Rs. Rs. Rs. Rs. Rs. Net Asset Value per Share The above fugures are subject to Audit

5 STATEMENT OF CHANGES IN EQUITY Page 03 Stated Retained Non Controlling Total Capital Earnings Interest Balance as at 1st April ,924 1,282, ,881 1,505,590 Profit for the Period - 166,942 (16,880) 150,062 Other Comprehensive Income Dividend Paid - (90,504) - (90,504) Balance as at 31st December ,924 1,359,223 90,001 1,565,148 Balance as at 1st April ,924 1,365, ,113 1,659,147 Profit for the Period - 376,665 (17,631) 359,034 Other Comprehensive Income Right issue ,970 99,970 Dividend Paid - (90,505) - (90,505) Balance as at 31st December ,924 1,651, ,452 2,027,646 Stated Retained Capital Earnings Total Balance as at 1st April ,924 1,240,905 1,356,829 Profit for the Period - 183, ,825 Other Comprehensive Income Dividend Paid - (90,504) (90,504) Balance as at 31st December ,924 1,334,226 1,450,150 Balance as at 1st April ,924 1,351,966 1,467,890 Profit for the Period - 394, ,294 Other Comprehensive Income Dividend Paid - (90,505) (90,505) Balance as at 31st December ,924 1,655,755 1,771,679 The above fugures are subject to Audit

6 STATEMENT OF CASH FLOW For the nine months ended 31st December Unaudited Unaudited Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation 497, , , ,700 Adjustments for : Depreciation 85,237 79,129 23,334 19,551 Gratuity Provision 2,461 3,645 2,461 3,645 Interest Expenses 73,689 31, Operating Profit before Working Capital Changes 658, , , ,896 Page 04 (Increase)/Decrease in Inventories (160,843) (27,815) 323,604 (34,219) (Increase)/ Decrease in Trade and Other Receivables (723,992) (74,322) (313,473) (150,799) (Increase)/Decrease in Related Party Receivables (1,856) 3,017 (62) - Increase/(Decrease) in Trade and Other Payables (305,175) 118,624 (352,686) 49,223 Increase/ (Decrease) in Related Party Payables 156,118 1, Cash Generated from Operations (377,244) 338, , ,101 Interest paid (73,689) (31,931) - - Income Tax Paid (53,438) (81,906) (53,438) (77,906) Gratuity Paid (1,312) (2,501) (1,312) (2,501) Net Cash from Operating Activities (505,683) 222, ,981 43,694 CASH FLOWS FROM INVESTING ACTIVITIES Additions to Property, Plant & Equipment (583,276) (26,967) (580,389) (17,102) Sale of Debenture 12,738 54,390 12,738 54,390 Investment in Subsidiary - - (99,970) - Proceeds from Disposal of Property, Plant & Equipment Net cash generated from investing activities (570,538) 27,469 (667,621) 37,334 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares 99, Net proceeds from borrowings 1,037,451 (134,548) 593,400 - Repayment of loan (19,040) (21,420) - - Dividends Paid (90,505) (90,504) (90,505) (90,504) Net Cash used in Financing Activities 1,027,876 (246,472) 502,895 (90,504) Net Increase/ (Decrease) in Cash and Cash Equivalents (48,345) 3,329 (3,745) (9,476) Cash & Cash Equivalents at the beginning of the year (18,579) (229,348) (1,722) (176,390) Cash & Cash Equivalents at the end of the year (66,924) (226,019) (5,467) (185,866) Analysis of cash and cash equivalents Cash at bank and in hand 39,453 43,218 32,427 3,738 Bank Overdraft (106,377) (269,237) (37,894) (189,604) (66,924) (226,019) (5,467) (185,866) The above fugures are subject to Audit

7 Explanatory Notes Page 05 (1) Same accounting policies & methods are followed as compared with the most recent annual financial statement as at 31st March (2) There has not been a significant change in the nature of the contingent liabilities,other than which were disclosed in the Annual Report for the year ended 31st March (3) The Interim financial statements have been presented, the current period figures based on SLFRS with effect from 01st April (4) Stated capital represented by 6,033,622 ordinary shares. (5) Comparative information- Where necessary comparative figures have been reclassified to conform with the current period's presentation. (6) These interim financial statements are subject to audit. (7) Event after the Reporting date The Board of Directors of the company approved (18/01/2018) the payment of a second interim dividend of Rs. 30/= per share for the 09 months period ended 31st December (8) Independence of non executive directors - It is confirmed that all directors have submitted declaration of their independence including non executive directors as at (9) Reference to rule 7.6 (vii) of SEC - There was no material issues pertaining to employees and industrial relations of the company during the year under review. (10) Consolidated financial statements- 's consolidated financial statements comprises the company and its subsidiary SML Frontier Automotive (Pvt) Ltd, having 50% ownership by the parent. (11) The value of fully depreciated assets are Rs. 86 Mn. as at of the parent. (12) The company purchased 6,500,002 shares, per share price being Rs of SML Frontier Automotive Pvt Ltd, through rights issue for a consideration of Rs.99,970, /-on 15th September (13) Transaction between Related Parties period ended Related Party Nature of Transaction Amount ( paid )/ received Amount ( paid )/ Nature of interest LKR LKR SML Frontier Automotive Pvt Ltd Received Workshop repair service - (36,084) Subsidiary Right issue of shares- purchase/ subscribed - (99,970,031) Subsidiary Access International Pvt Ltd Supply of workshop repair services 782, ,410 Affiliate Access International Projects Pvt Ltd Supply of workshop repair services 153, ,562 Affiliate Access Natural Water Pvt Ltd Purchase of mineral water & dispenser (348,512) (325,692) Affiliate Sale of vehicle 4,875,000 4,875,000 Affiliate Supply of workshop repair services 207, ,978 Affiliate Access Life style Pvt Ltd Supply of workshop repair services 693, ,987 Affiliate Access Real State Pvt Ltd Received Workshop repair service 89,510 - Affiliate Foresight Engineering Pvt Ltd Intercompany loan (150,000,000) - Affiliate Supply of workshop repair services (678,483) - Affiliate Access Projects (Private) Limited Project payment (7,796,014) - Affiliate ZPMC Lanka company Pvt Ltd Supply of workshop repair services 514, ,591 Affiliate Reprographics Pvt Ltd Purchase of toner and service agreement fee (149,845) (139,725) Affiliate Access Engineering PLC Rent payable to Boralesgamuwa land (8,128,890) - Parent Supply of spare parts 156, ,112 Parent Received Workshop repair service 417,699 - Parent Mrs R.S.Fernando Directors' Salary (1,000,000) - Director Mr. Sheran Fernando Directors' Salary (1,500,000) - Managing Director Service Income 1,980,919 Managing Director Mr. Darshana Munasinghe Service Income (313,016) - Director

8 Segment Reporting Page 06 Work Shop Repairs Vehicle Sales Spare Part Sales Vehicle Local Charges 09 Months Ended 31st December / / / / /2017 Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited Revenue 294, ,233 5,336,390 4,133, , ,207 45, ,997 6,159,523 5,178,575 NBT Expense (4,778) (5,587) (133) (3,222) (4,803) (5,868) (901) (3,460) (10,614) (18,136) Net Revenue (After NBT) 289, ,647 5,336,257 4,129, , ,339 44, ,537 6,148,909 5,160,439 Agency Commission , ,777 Total Revenue from External 289, ,647 5,336,257 4,139, , ,339 44, ,537 6,148,909 5,170,216 Internal -Sales - 60,160 1, ,870 60,160 Total Revenue 289, ,807 5,338,127 4,139, , ,339 44, ,537 6,150,779 5,230,376 Segment Results 91, , , , , ,263 5,563-1,085, ,871 Unallocated Income 53, ,537 Unallocated Expenses (521,186) (676,920) Profit from Operation before Financing Cost 618, ,588 Net Financing Cost (121,048) (66,376) Profit from Operations 497, ,112 Income Tax Expenses (138,083) (76,545) Profit from Ordinary Activities 359, ,567 Capital expenditure (683,246) (81,262) Depreciation & amortization 85, ,880 Segment Reporting Page 07 Work Shop Repairs Vehicle Sales Spare Part Sales 09 Months Ended 31st December / / / /2017 Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited Revenue 220, ,395 3,405,436 3,557, , ,452 3,801,481 3,992,970 NBT Expense (3,346) (3,870) (133) (6) (1,758) (2,425) (5,237) (6,301) Net Revenue (After NBT) 216, ,525 3,405,303 3,557, , ,028 3,796,244 3,986,669 Agency Commision - - 9, ,778 Total Revenue from External 216, ,525 3,405,303 3,566, , ,028 3,796,244 3,996,447 Internal -Sales - 60,161 1, ,870 60,161 Total Revenue 216, ,685 3,407,173 3,566, , ,028 3,798,114 4,056,607 Segment Results 82, , , , , , , ,212 Unallocated Income 51,073 87,301 Unallocated Expenses (262,826) (300,642) Profit from Operation before Financing Cost 578, ,872 Net Financing Cost (45,642) (22,448) Profit from Operations 532, ,424 Income Tax Expenses (138,083) (94,958) Profit from Ordinary Activities 394, ,466 Capital expenditure (680,359) (162,150) Depreciation & amortization 23,334 26,657 The above fugures are subject to Audit

9 SATHOSA MOTORS PLC TOP 20 SHAREHOLDER LIST AS AT 31ST DECEMBER 2017 Page 07 NAME OF SHAREHOLDER NO. OF SHARES % ACCESS ENGINEERING PLC 5,093, LAKSHMANS HOUSING AND CONSTRUCTION CO (PVT) LTD 619, MR M MAHIBALAN 27, BANK OF CEYLON NO. 1 ACCOUNT 16, HATTON NATIONAL BANK PLC/ MR T D GUNASEKARA 5, MR R D LEELARATNA 5, MR.S G N HERATH,MRS. A N HERATH AND MS.N E HERATH 5, MR. U I SURIYABANDARA 5, MR N A N D D GUNASEKARA 5, MR.G C GOONETILLEKE 4, MR. R D U A RANAMUKA 4, MR K C VIGNARAJAH 4, MR A H MUNASINGHA 3, MR S GOWRISANGAR 3, TEA CEYLON INVESTMENTS (PVT) LTD 2, MRS S A KALEEL 2, MR N L DIAS (DECEASED) 2, MR P K SAMBASIVAM 2, DR N I WIKRAMANAYAKE 2, MRS R R RUMY 2, SUB TOTAL 5,817, OTHERS 215, ,033, ( ii DIRECTORS HOLDING AS AT Name of Shareholder No of Shares % Mr.T D Gunasekara 5, MR M M N De SILVA 1, (iii) Public holding percentage as at 31st December 2017 being % comprising of 1,142 shareholders.