John Keells PLC Interim Financial Statements 30th June 2017

Transcription

1 Interim Financial Statements 30 th June 2017

2 CONSOLIDATED INCOME STATEMENT For the three months ended 30th June Change % Continuing Operations Rendering of services 214, , Revenue 214, , Cost of sales (60,721) (46,534) 30 Gross profit 154, , Other operating income 3, ,596 Distribution expenses (2,940) (691) 326 Administrative expenses (61,224) (50,758) 21 Results from operating activities 93,685 49, Finance expenses (24,351) (16,033) 52 Finance income 16,006 24,765 (35) Net finance (costs) / income (8,345) 8,732 (196) Share of results of equity-accounted investees (12) Profit before tax 85,890 58, Tax expense (25,010) (13,033) 92 Profit for the period 60,880 45, Attributable to : Equity holders of the parent 59,776 45, Non-controlling interests 1,104 (382) (389) 60,880 45, Earnings per share Rs. Rs. Basic Dividend per share

3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the three months ended 30th June Profit for the period 60,880 45,598 Other comprehensive income Equity-accounted investees - (132) Net (loss)/gain on available-for-sale financial assets (11,837) (35,510) Income tax on other comprehensive income - - Other comprehensive income for the period, net of tax (11,837) (35,642) Total comprehensive income for the period, net of tax 49,043 9,956 Attributable to : Equity holders of the parent 47,939 10,338 Non-controlling interests 1,104 (382) 49,043 9,956 2

4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30th June As at Assets Non-current assets Property, plant and equipment 329, , ,237 Lease rentals paid in advance 37,752 38,841 38,024 Investment property 227, , ,750 Intangible assets Equity accounted investments 100,028 98,030 99,632 Other non-current financial assets 2,371,316 2,375,782 2,408,119 Other non-current assets 6,680 3,691 6,636 Deferred tax assets 29,196 28,181 29,118 3,102,710 3,061,918 3,130,608 Current assets Inventories Trade and other receivables 1,632,505 1,253,533 2,061,480 Amounts due from related parties 3,807 5,224 30,155 Income Tax Refunds - 1,898 1,489 Short term investment 232, , ,030 Other current assets 14,207 4,536 5,140 Cash in hand and at bank 138, , ,234 2,022,058 1,665,306 2,494,984 Total assets 5,124,768 4,727,224 5,625,592 EQUITY AND LIABILITIES Equity Stated capital 152, , ,000 Revenue reserves 2,674,879 2,587,786 2,736,703 Other components of equity 507, , ,270 Equity attributable to equity holders of the parent 3,334,563 3,268,207 3,402,973 Non-controlling interests 35,596 23,897 33,781 Total equity 3,370,159 3,292,104 3,436,754 Non-current liabilities Deferred tax liabilities 35,982 34,825 35,060 Employee benefit liabilities 67,612 74,770 65, , , ,423 Current liabilities Trade and other payables 665, ,106 1,379,257 Amounts due to related parties 5,150 4,460 3,153 Income tax payable 52, ,303 Other current liabilities 9,571 1,847 2,125 Bank overdrafts 918, , ,577 1,651,015 1,325,525 2,088,415 Total equity and liabilities 5,124,768 4,727,224 5,625,592 Rs. Rs. Rs. Net assets per share I certify that the financial statements comply with the requirements of the Companies Act No.7 of P.A.P.Perera Sector Financial Controller The Board of Directors is responsible for the preparation and presentation of these financial statements. 25th July 2017 S. C. Ratnayake Chairman A.D.Gunewardene Director 3

5 CONSOLIDATED CASH FLOW STATEMENT For the three months ended 30th June Note Profit before working capital changes A 103,977 63,519 (Increase) / Decrease in inventories 20 1 (Increase) / Decrease in amounts due from Related Parties 26,348 (2,588) (Increase) / Decrease in trade and other receivables 428, ,313 (Increase) / Decrease in other current assets (9,067) (506) (Increase) / Decrease in other non-current assets 30,290 24,930 Increase / (Decrease) in trade and other payables (713,372) (251,905) Increase / (Decrease) in amounts Due to Related Parties 1,997 1,639 Increase / (Decrease) in other current liabilities 7,447 (3,165) Cash generated from operations (123,385) 68,238 Finance income received 9,058 6,238 Finance costs paid (24,351) (16,033) Dividend received 6,948 18,527 Tax paid (1,963) (1,360) Gratuity paid - (114) Net cash flow from operating activities (133,693) 75,496 CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (14,442) (603) Net cash flow from / (used in) investing activities (14,442) (603) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Dividend paid to equity holders of parent (121,600) (60,800) Dividend paid to shareholders with non-controlling interest - (180) Net cash flow from / (used in) financing activities (121,600) (60,980) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (269,735) 13,913 CASH AND CASH EQUIVALENTS AT THE BEGINNING (277,313) (306,406) CASH AND CASH EQUIVALENTS AT THE END (547,048) (292,493) ANALYSIS OF CASH AND CASH EQUIVALENTS Favourable balances Short term investments 232, ,970 Cash in hand and at bank 138, , , ,632 Unfavourable balances Bank overdrafts (918,151) (692,125) Cash and cash equivalents (547,048) (292,493) 4

6 CONSOLIDATED CASH FLOW STATEMENT For the three months ended 30th June A. Profit before working capital changes Profit before tax 85,890 58,631 Adjustments for: Finance income (9,058) (6,238) Dividend income (6,948) (18,527) Finance expenses 24,351 16,033 Share of results of associates (550) (625) Depreciation of property, plant and equipment 5,723 5,532 Amortisation of Intangible Assets (Profit) / loss on sale of property, plant and equipment and intangible assets (3,688) (50) Share base payment expenses 5,962 6,910 Gratuity provision and related costs 2,249 1, ,977 63,519 5

7 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 6 Attributable to equity holders of parent Other Components of Equity Stated Revenue Revaluation Available Other Total Non-controlling Total Capital Reserves Reserves for sale Capital interest Equity Reserve Reserve As at 1 April ,000 2,602, , ,060 64,736 3,312,398 23,820 3,336,218 Profit for the period - 45,980-45,980 - (382) 45,598 Other comprehensive income (35,642) (35,642) - (35,642) Total Comprehensive Income - 45,980 - (35,642) 10,338 (382) 9,956 Share base payment expenses 6,271 6, ,910 Final dividend paid /16 - (60,800) - (60,800) - (60,800) Subsidiary dividend to non-controlling interest (180) (180) As at 30 June ,000 2,587, , ,418 71,007 3,268,208 23,897 3,292,104 As at 1 April ,000 2,736, , ,514 86,760 3,402,973 33,781 3,436,754 Profit for the period - 59, ,776 1,104 60,880 Other comprehensive income (11,837) - (11,837) - (11,837) Total Comprehensive Income - 59,776 - (11,837) - 47,938 1,104 49,043 Share base payment expenses 5,251 5, ,962 Final dividend paid /17 - (121,600) - (121,600) - (121,600) As at 30 June ,000 2,674, , ,677 92,011 3,334,563 35,596 3,370,159

8 COMPANY INCOME STATEMENT For the three months ended 30th June Change % Continuing Operations Rendering of services 142,124 97, Revenue 142,124 97, Cost of sales (31,392) (20,752) 51 Gross profit 110,732 76, Dividend income 6,948 19,040 (64) Other operating income 3, Administrative expenses (26,652) (27,232) (2) Distribution Expenses (1,911) (237) 706 Results from operating activities 92,661 68, Finance expenses (24,172) (16,032) 51 Finance income 1,889 1, Net finance (costs) / income (22,283) (14,453) 54 Profit before tax 70,378 54, Tax expense (20,523) (11,787) 74 Profit for the period 49,855 42, Rs. Rs. Dividend per share

9 COMPANY STATEMENT OF COMPREHENSIVE INCOME For the three months ended 30th June Profit for the period 49,855 42,277 Other comprehensive income Net (loss)/gain on available-for-sale financial assets (11,837) (35,510) Other comprehensive income for the period, net of tax (11,837) (35,510) Total comprehensive income for the period, net of tax 38,018 6,767 8

10 COMPANY STATEMENT OF FINANCIAL POSITION As at 30th June As at Assets Non-current assets Property, plant and equipment 28,918 22,057 18,162 Investment property 227, , ,750 Investment In Subsidiaries 158, , ,570 Equity accounted investments 24,000 24,000 24,000 Other non-current financial assets 2,359,934 2,364,252 2,397,665 Other non-current assets 4,889 2,173 5,082 Deferred tax assets 15,456 22,011 15,380 2,819,517 2,737,293 2,846,609 Current assets Inventories Trade and other receivables 1,499,238 1,139,668 1,268,496 Amounts due from related parties 3,711 5,150 4,314 Income Tax Refunds - 1,898 - Other current assets 1,388 1,035 1,992 Cash in hand and at bank 101, , ,633 1,606,152 1,333,502 1,433,767 Total assets 4,425,669 4,070,795 4,280,376 EQUITY AND LIABILITIES Stated capital 152, , ,000 Revenue reserves 2,507,872 2,433,628 2,579,617 Other Components of Equity 287, , ,305 Total equity 2,947,108 2,902,448 3,027,922 Non-current Deferred tax liabilities Employee benefit liabilities 32,714 43,616 31,833 32,714 43,616 31,833 Current liabilities Trade and other payables 466, , ,026 Amounts due to related parties 10,567 5,976 8,471 Other current liabilities 9, ,707 Income tax payable 48,991-29,050 Bank overdrafts 910, , ,367 1,445,847 1,124,731 1,220,621 Total equity and liabilities 4,425,669 4,070,795 4,280,376 Rs. Rs. Rs. Net assets per share I certify that the financial statements comply with the requirements of the Companies Act No.7 of P.A.P.Perera Sector Financial Controller The Board of Directors is responsible for the preparation and presentation of these financial statements. 25th July 2017 S. C. Ratnayake Chairman A.D.Gunewardene Director 9

11 COMPANY CASH FLOW STATEMENT For the three months ended 30th June CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 70,378 54,064 Adjustments for: Finance income (1,889) (1,579) Dividend income (6,948) (19,040) Finance expenses 24,172 16,032 Depreciation of Property, plant and equipment 2,313 1,912 Profit on sale of property, plant and equipment (3,544) - Gratuity provision and related costs Share base payment expenses 2,768 4,064 Profit before working capital changes 88,131 56,253 (Increase) / Decrease in inventories (Increase) / Decrease in trade and other receivables (230,742) 129,628 (Increase) / Decrease in other non-current assets 29,796 23,457 (Increase) / Decrease in amounts due from Related Parties 602 (2,450) (Increase) / Decrease in other current assets Increase / (Decrease) in amounts Due to Related Parties 2, Increase / (Decrease) in Other Current Liabilities 7,493 (363) Increase / (Decrease) in trade and other payables (42,741) (83,396) Cash generated from operations (144,735) 123,358 Finance income received 1,889 1,579 Finance expenses paid (24,172) (16,032) Dividend received 6,948 19,040 Tax paid (807) (118) Net cash flow from operating activities (160,877) 127,827 CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (13,085) (29) Net cash flow from/(used in) investing activities (13,085) (29) CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Dividend paid (121,600) (60,800) Net cash flow from / (used in) financing activities (121,600) (60,800) NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (295,562) 66,998 CASH AND CASH EQUIVALENTS AT THE BEGINNING (513,734) (562,392) CASH AND CASH EQUIVALENTS AT THE END (809,296) (495,394) ANALYSIS OF CASH & CASH EQUIVALENTS Favourable balances Cash in hand & at bank 101, ,441 Unfavourable balances Bank overdrafts (910,806) (680,835) (809,296) (495,394) 10

12 COMPANY STATEMENT OF CHANGES IN EQUITY 11 Other Components of Equity Stated Revenue Available Other Total Capital Reserves for sale Capital Equity Reserve Reserves As at 1 April ,000 2,452, ,844 45,422 2,952,417 Profit for the period - 42, ,277 Other comprehensive income - - (35,510) - (35,510) Total Comprehensive Income - 42,277 (35,510) - 6,767 Share base payment expenses 4,064 4,064 Final dividend paid /16 (60,800) (60,800) As at 30th June ,000 2,433, ,334 49,486 2,902,448 As at 1 April ,000 2,579, ,514 57,791 3,027,922 Profit for the period - 49, ,855 Other comprehensive income - - (11,837) - (11,837) Total Comprehensive Income - 49,855 (11,837) - 38,018 Share base payment expenses 2,768 2,768 Final dividend paid /17 (121,600) - (121,600) As at 30th June ,000 2,507, ,677 60,559 2,947,108

13 OPERATING SEGMENT INFORMATION OPERATING SEGMENTS The following present the revenue and profit information regarding the Group's operating segments. Produce Broking Warehousing Share Broking Group Total For the three months ended 30th June External Revenue 142,124 97,698 20,028 17,656 52,689 31, , ,037 Inter segment revenue - 1,322 1, ,322 1,203 Segment Revenue 142,124 97,698 21,350 18,859 52,689 31, , ,240 Eliminations of inter segment revenue (1,322) (1,203) Net Revenue 214, ,037 Segment results from operating activities 85,713 49,477 6,112 5,069 1,860 (5,272) 93,685 49,274 Finance expenses (24,172) (16,032) - (1) (179) - (24,351) (16,033) Finance income 8,836 20,106 1, ,170 4,176 16,006 24,765 70,377 53,551 7,112 5,551 7,851 (1,096) 85,340 58,006 Share of results of equity-accounted investees Profit before tax 85,890 58,631 Tax expense (25,010) (13,033) Profit for the period 60,880 45,598 12

14 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 1 CORPORATE INFORMATION John Keells PLC, is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. 2 INTERIM CONDENSED FINANCIAL STATEMENTS The financial statements for the period ended 30 June 2017, includes the Company referring to John Keells PLC. as the holding company and the Group referring to the companies whose accounts have been consolidated therein. 3 APPROVAL OF FINANCIAL STATEMENTS The interim condensed financial statements of the Group and the Company for the 3 months ended 30 June 2017 were authorised for issue by the Board of Directors on 25th July BASIS OF PREPARATION The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard (SLAS) LKAS 34 Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 st March The presentation and classification of the financial statements of the previous year have been amended, where relevent, for better presentation and to be comparable with those of the current year. The interim condensed financial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand except when otherwise indicated. 5 OPERATING SEGMENTS For management purposes, the group is organised into business units based on their products and services and has three reportable operating segments as follows: 5.1 Produce Broking This includes tea and rubber broking. 5.2 Warehousing This includes tea and rubber pre-auction produce warehousing. 5.3 Stock Broking This includes the stock Broking segement. 6 RELATED PARTY TRANSACTIONS Group Company For the three months Ended 30th June Transactions with related parties Ultimate Parent Receiving of Services for which fees are paid 7,928 7,382 4,106 4,163 Providing of Services for which fee are received - - (100) Subsidiaries Renting of stores space for which rent is paid - - 1,322 1,203 Key management personnel (Receiving) / Rendering of services Close family members of KMP (Receiving) / Rendering of services Companies under common control Purchases of goods for a fee Receiving of Services for which fees are paid 3,490 2,415 1,999 1,711 Lending/investing Money for which interest is received (5,131) (3,589) - (220) Renting Office space for which rent is received (421) (421) (421) (421) Providing of Services for which fees are received (7,387) (4,877) (6,335) (4,877) Post employment benefit plan Contributions to the provident fund 2,659 2,526 2,659 2,526 13

15 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 7 SHARE INFORMATION 7.1 Public share holdings The percentage of shares held by the public as at 30 June 2017 was 13.10% (31 st Marchr %). The number of shares held by the Public as at 30th June 2017 was 1,213. (31 st March ,189) 7.2 Directors' and CEO's share holdings The number of shares held by the Board of Directors/CEO are as follows: As at S C Ratnayake Chairman Nil Nil A D Gunewardene Nil Nil J R F Peiris Nil Nil V.A.A.Perera Nil Nil A. K Gunawardhana Nil Nil C. N. Wijewardane Nil Nil B.A.I Rajakarier Nil Nil H.G.R De Mel -CEO Nil Nil 7.3 Twenty largest shareholders of the company are as follows: As at Number of shares % Number of shares % 1 John Keells Holdings Plc 52,834, % 52,834, % 2 H. S.D. Soysa 620, % 620, % 3 Bank of Ceylon No 2 a/c 338, % 338, % 4 Bank of Ceylon No 1 a/c 250, % 250, % 5 H. G. S.Ansell 240, % 240, % 6 Est. of Late M Radhakrishnan 232, % 232, % 7 Mrs. M. L. De Silva 207, % 207, % 8 A. M. Weerasinghe 179, % 179, % 9 H.A.Van Starrex 179, % 226, % 10 Catholic Bishops Conference in Sri Lanka 171, % 171, % 11 Employees trust Fund Board 169, % 169, % 12 Waldock Mackenzie Ltd - H.S.D. Soyza 151, % 151, % 13 N S De Mel 137, % 137, % 14 Mrs. N Tirimanne 133, % 133, % 15 Peoples; Leasing & Finance PLC/ L.P Hapangama 130, % 130, % 16 Waldock Mackenzie Ltd - Mrs G Soyza 130, % 130, % 17 F. A. A Mack 121, % 90, % 18 Sisira Investors Ltd 114, % 114, % 19 Com.Bank -Colombo Fort Investments Ltd 112, % 112, % 20 W A Perera 111, % % 56,568, % 56,471, % 7.4 Stated capital Stated capital is represented by number of shares in issue as given below: As at Ordinary shares 60,800,000 60,800,000 8 Net assets per share Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 30 June Market price per share For the quarter ended 30 June Rs. Rs. Highest Lowest Last traded DIVIDENDS PAID A final dividend of Rs per share for the financial year ended 31 March 2017 was paid on 14 June CONTINGENCIES, CAPITAL AND OTHER COMMITMENTS There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the annual report for the year ended 31 March 2017 and no circumstances have arisen since the Statement of Financial Position date, which would require adjustments to or disclosure in the financial statements. 10 EVENTS AFTER THE REPORTING PERIOD There have been no events subsequent to the reporting date. 14