CONVENIENCE FOODS (LANKA) PLC INTERIM REPORT

Transcription

1 INTERIM REPORT For the 1st Quarter Ended 30 th June 2017

2 NAME OF THE COMPANY Convenience Foods (Lanka) PLC LEGAL FORM & LISTING A Public Limited Company listed on the Colombo Stock Exchange. DATE OF INCORPORATION 27 th March 1991 REGISTERED OFFICE Ceylon Biscuits Ltd, Makumbura, Pannipitiya, Sri Lanka. BUSINESS ACTIVITY Manufacture and Marketing of Textured Vegetable Protein (TVP) and other Food Products. DIRECTORS OF THE COMPANY Mr. R.S. Wickramasingha - Chairman Mr. E.T. De Zoysa - Managing Director Ms. D.S. Wickramasingha - Director Mr. N.A.Wickramage - Director Ms. N.K. Wickramasingha - Director Mr. M.U.S.G. Thilakawardana - Director Dr. D.M.A. Kulasooriya - Director Mr. M.S.Nanayakkara - Director AUDITORS SJMS Associates, Chartered Accountants, No. 11, Castle Lane, Colombo 4, Sri Lanka. SECRETARIES & REGISTRARS P W Corporate Secretarial (Pvt) Ltd. No.3/17, Kynsey Road, Colombo 08. BANKERS Hatton National Bank PLC Peoples Bank DFCC Bank PLC

3 STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30TH JUNE 2017 Company Group 03months 30/06/ months 30/06/2016 Variance 03months 30/06/ months 30/06/2016 Variance Revenue 388,253, ,394,469 22,859, ,253, ,394,469 22,859,248 Cost of sales (248,993,002) (263,144,082) 14,151,080 (248,993,002) (263,144,082) 14,151,080 Gross profit 139,260, ,250,387 37,010, ,260, ,250,387 37,010,328 Other income 11,962,947 8,114,445 3,848,502 11,962,947 8,114,445 3,848,502 Distribution expenses (88,184,235) (68,870,470) (19,313,765) (88,184,235) (68,870,470) (19,313,765) Administrative expenses (26,057,997) (26,739,697) 681,700 (26,057,997) (26,739,697) 681,700 Finance expenses (70,902) (765,878) 694,976 (70,902) (765,878) 694,976 Profit before tax 36,910,527 13,988,787 22,921,740 36,910,527 13,988,787 22,921,740 Income tax expenses (14,088,780) (6,138,635) (7,950,145) (14,088,780) (6,138,635) (7,950,145) Profit for the period 22,821,747 7,850,152 14,971,595 22,821,747 7,850,152 14,971,595 Other comprehensive income Items that will not be reclassified subsequently to profit or loss: Re-measurement gain/ (loss) on defined benefit plan Other comprehensive income for the period Total comprehensive income for the period 22,821,747 7,850,152 14,971,595 22,821,747 7,850,152 14,971,595 Profit attributable to: Owners of the company 22,821,747 7,850,152 14,971,595 22,821,747 7,850,152 14,971,595 Non-controlling interest 22,821,747 7,850,152 14,971,595 22,821,747 7,850,152 14,971,595 Total comprehensive income attributable to: Owners of the company 22,821,747 7,850,152 14,971,595 22,821,747 7,850,152 14,971,595 Non-controlling interest 22,821,747 7,850,152 14,971,595 22,821,747 7,850,152 14,971,595 Earnings per share - basic Note: The above figures are not audited.

4 STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE 2017 Company Variance Group Variance As at Assets Rs. Rs. Rs. Rs. Non current assets Property, plant and equipment 276,668, ,843,939 5,824, ,668, ,843,939 5,824,614 Leasehold land 5,138,367 5,155,766 (17,399) 5,138,367 5,155,766 (17,399) Intangible Asset 8,642,713 8,915,549 (272,836) 8,642,713 8,915,549 (272,836) Investment in subsidiary Total non current assets 290,449, ,915,274 5,534, ,449, ,915,254 5,534,379 Current assets Inventories 109,829, ,320,359 (490,912) 109,829, ,320,359 (490,912) Trade & other receivables 231,502, ,266,290 (8,763,520) 231,502, ,266,290 (8,763,520) Amounts due from related party 2,883,250 1,845,035 1,038,215 2,883,250 1,845,035 1,038,215 Short term investments 351,727, ,682,790 39,045, ,727, ,682,790 39,045,155 Cash in hand and at bank 38,933,658 17,896,018 21,037,640 38,933,658 17,896,018 21,037,640 Total current assets 734,877, ,010,492 51,866, ,877, ,010,492 51,866,578 Total assets 1,025,326, ,925,766 57,400,957 1,025,326, ,925,746 57,400,956 Equity and liabilities Equity attributable to equity - holders of the parent Stated capital 52,521,178 52,521,178-52,521,178 52,521,178 - Retained earnings 713,192, ,370,749 22,821, ,972, ,151,038 22,821,747 Total equity 765,713, ,891,927 22,821, ,493, ,672,216 22,821,747 Liabilities Non current liabilities Deferred Tax Liabilities 20,345,628 20,385,817 (40,189) 20,345,628 20,385,817 (40,189) Retirement benefit obligations 43,766,734 41,269,953 2,496,781 43,766,734 41,269,953 2,496,781 Total non current liabilities 64,112,362 61,655,770 2,456,592 64,112,362 61,655,770 2,456,591 Current liabilities Trade & other payables 167,057, ,574,051 23,483, ,626, ,142,689 23,483,911 Current tax liabilities 26,228,235 15,898,090 10,330,144 26,228,235 15,898,090 10,330,144 Amounts due to related party 2,214,488 3,905,928 (1,691,440) 1,865,541 3,556,981 (1,691,440) Total current liabilities 195,500, ,378,069 32,122, ,720, ,597,760 32,122,616 Total liabilities 259,613, ,033,839 34,579, ,832, ,253,530 34,579,209 Total equity and liabilities 1,025,326, ,925,766 57,400,957 1,025,326, ,925,746 57,400,956 (1) (0) 0 (0) 0 0 Net assets value per share I certify that these financial statements comply with the requirements of the Companies Act No. 07 of Dasun Mendis Finance Manager The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board. E T De Zoysa R S Wickramasingha Managing Director Chairman 11 th August th August 2017 Note: The above figures are not audited.

5 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30TH JUNE 2017 Company Stated Retained Total Capital Earnings Rs. Rs. Rs. Balance as at 1 st April ,521, ,342, ,863,879 Profit for the period - 7,850,152 7,850,152 Balance as at 30 th June ,521, ,192, ,714,030 Balance as at 1 st April ,521, ,370, ,891,927 Profit for the period - 22,821,747 22,821,747 Balance as at 30 th June ,521, ,192, ,713,675 Group Stated Retained Total Capital Earnings Rs. Rs. Rs. Balance as at 1 st April ,521, ,122, ,644,168 Profit for the period - 7,850,152 7,850,152 Balance as at 30 th June ,521, ,973, ,494,320 Balance as at 1 st April ,521, ,151, ,672,216 Profit for the period - 22,821,747 22,821,747 Balance as at 30 th June ,521, ,972, ,493,963 Note: The above figures are not audited.

6 STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30TH JUNE months 30/06/2017 Company 03 months 30/06/ months 30/06/2017 Group 03 months 30/06/2016 Cash flows from/(used in) operating activities Profit before taxation 36,910,527 13,988,787 36,910,527 13,988,787 Adjustments for: Depreciation 11,331,452 10,688,917 11,331,452 10,688,917 Amortization 290, , , ,516 Interest income (10,667,177) (6,329,074) (10,667,177) (6,329,074) Interest expense 70, ,560 70, ,560 Provision for gratuity 2,742,831 2,448,957 2,742,831 2,448,957 Operating profit before working capital changes 40,678,771 21,591,664 40,678,771 21,591,664 (Increase)/decrease in inventories 490,912 11,489, ,912 11,489,888 - (Increase)/decrease in trade & other receivables 8,763,520 10,191,660 8,763,520 10,191,660 (Increase)/decrease in amount due from related parties (1,038,215) 1,385,370 (1,038,215) 1,385,370 Increase/(decrease) in amount due to related parties (1,691,440) (713,949) (1,691,440) (713,949) (0) - Increase/(decrease) in trade & other payables 23,483,911 (16,029,848) 23,483,911 (16,029,848) Cash flow generated from/ (used in) operations 70,687,459 27,914,785 70,687,459 27,914,785 (0) Gratuity paid (246,050) (3,646,803) (246,050) (3,646,803) Tax paid (3,798,825) (7,877,623) (3,798,825) (7,877,623) Net cash flow generated from/ (used in) operations 66,642,585 16,390,359 66,642,585 16,390,359 (0) - Cash flows from investing activities Purchase of property, plant & equipment (17,156,064) (19,802,903) (17,156,064) (19,802,903) Interest received 10,667,177 6,329,074 10,667,177 6,329,074 (Increase)/decrease in short term investment (39,045,155) 11,885,943 (39,045,155) 11,885,943 Net cash flow from/ (used in) investing activities (45,534,043) (1,587,886) (45,534,043) (1,587,886) Cash flows from financing activities loan Repayment - (4,444,446) - (4,444,446) Interest paid (70,902) (533,560) (70,902) (533,560) Net cash generated from /(used in) financing activities (70,902) (4,978,006) (70,902) (4,978,006) Net increase/ (decrease) in cash & cash equivalents 21,037,640 9,824,466 21,037,640 9,824,466 (0) - Cash & Cash Equivalents at the beginning of the period 17,896,018 (28,664,798) 17,896,018 (28,664,798) Cash & Cash Equivalents at the end of the period 38,933,658 (18,840,333) 38,933,658 (18,840,333) (0) - Cash & Cash Equivalents at the end of the period Cash in hand and at bank 38,933,658 3,452,450 38,933,658 3,452,450 Bank overdraft - (22,292,782) - (22,292,782) 38,933,658 (18,840,333) 38,933,658 (18,840,333) (0) (0) (0) (0) Note: The above figures are not audited.

7 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 1. Corporate information Convenience Foods (Lanka) PLC ('the Company') is engaged in the manufacture and marketing of Textured Vegetable Protein (TVP) and other food products. Convenience Foods (Lanka) PLC is a public limited company incorporated and domiciled in Sri Lanka and listed in the Colombo Stock Exchange. 2. Approval of financial statements The interim condensed financial statements of the group and the company for the three months period 30 th June 2017 were authorised for issues by the Board of Directors on 11 th August Basis of preparation The interim financial statements of the company and group for the three months period 30 th June 2017 have been prepared in accordance with the requirements of LKAS - 34 Interim Financial Reporting and have been prepared in accordance with the same accounting policies and methods set out in the Annual Audited Financial Statements for the year 31 st March These interim condensed financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group s annual audited financial statement for the year 31 st March The presentation and classification of the financial statements of the previous year have been am, where relevant, for better presentation and to be comparable with those of the current period. These interim condensed financial statements are presented in Sri Lankan Rupees (RS.) and all values are rounded to the nearest rupee except when otherwise indicated. Segmental information Segmental information is not presented since the company does not have distinguishable components to be identified as a segment as all operations are treated as one segment. Significant unusual items affecting assets, liabilities, equity, net income or cash flows There were no unusual items affecting the assets, liabilities, equity, net income or cash flows due to their nature, size or incidence for the period 30 th June Events after the reporting period There were no significant events after the reporting period that would require adjustments to or disclosures in these interim financial Commitments and contingencies. Financial commitments Commitments on account of letter of credit as at 30 th June 2017 was Rs. 116,350,427/- (31 st March 2017: Rs. 55,771,314/-). Shipping Guarantees as at 30 th June 2017 was (31 st March 2017 : Rs. 65,948,400/-). Import Bills as at 30 th June 2017 was Rs. 17,396,626/- (31 st March 2017: Rs.4,057,800/-). Capital Commitments There were no significant capital commitments as at reporting date. Contingencies - pending litigations There were no other significant contingent liabilities as at the reporting date, except for the following: The company had made an appeal to the court of Appeal on question of law arising from the determination of the Board of Review and is made under and in terms of Section 122 (1) of the Inland Revenue Act No. 28 of 1979 (as am). The income tax payable as per the Board of Review determination for the year of assessment 1991/1992 amounts to a sum of Rs. 8,871,886 and surcharge on income tax of Rs. 1,072,031 (plus any penalties payable thereon). Pending the final decision, no provision has been made in these financial statements.

8 Additional Notes 1 Share prices during the Quarter 03 Months 03 Months Ended Ended 30th June 2017 Rs. 30th June 2016 Rs. Highest Lowest Closing Names and the number of shares held by the 20 major shareholders As At 30th June 2017 No of Shares % of holding 1.CEYLON BISCUITS LIMITED 1,962, % 2.DAWI INVESTMENT TRUST (PVT) LTD 175, % 3.PEOPLE'S LEASING & FINANCE PLC/C D KOHOMBANWICKRAMA 170, % 4.MR.H W M WOODWARD 70, % 5.MR.A M D E S JAYARATNE 18, % 6.MR.K C VIGNARAJAH 14, % 7.BANSEI SECURITIES CAPITAL PVT LTD/DAWI INVESTMENT PVT LTD 14, % 8.MR.E.D.K.WEERASURIYA 10, % 9.MR. R J S JAYAMAHA 10, % 10.MR.L.H.S.PEIRIS 7, % 11.MRS.N.A.CHNDRASENA & MR.J U N CHANDRASENA 7, % 12.MR.G.W.AMARATUNGA 6, % 13.MR.Z.G.CARIMJEE 6, % 14.MR. U. I.SURIYABANDARA 6, % 15.MR.D.J.N.HETTIARACHCHI 6, % 16.MRS.S.VIGNARAJAH 6, % 17.MR.A.J.R.RUMY 6, % 18.MRS.M.M.UDESHI 6, % 19.MR.D.RATHNAYAKE 5, % 20.NDB PLC/SAKUNIINVESTMENT TRUST (PVT) LTD 5, % Sub total 2,518, % Others 231, % Issued Capital 2,750, % 3 Director's holding as at 30th June 2017 Mr. R S Wickramasingha Ms. D S Wickramasingha Mr. E T De Zoysa Mr. N A Wickramage Ms. N K Wickramasingha Mr. M U S G Thilakawardana Mr. D M A Kulasooriya Mr. M S Nanayakkara 4 Public Holding Percentage as at 30th June 2017 was % and comprised of approximately 1,563 Shareholders