Browns Investments. Browns Investments PLC Period ended 30th June 2018 Reg. No. PV 66136PB/PQ

Transcription

1 Browns Investments Browns Investments PLC Period ended 30th June 2018 Reg. No. PV 66136PB/PQ

2 Income Statements Group Quarter ended 30th June % Change (Un Audited) ( Un Audited) Rs.000 Rs.000 Revenue/ Income 961,085-1,179, % Cost of sales (667,360) (752,335) -11% Gross profit 293, ,128-31% Other income 63, ,704-94% Selling & distribution expenses (20,428) (27,085) -25% Administrative expenses (326,053) (340,349) -4% Other expenses (42,568) (23,956) 78% Finance income 67,391 45,494 48% Finance cost (585,649) (507,154) 15% Share of profit/ (loss) of equity accounted investees (Net of tax) (2,216) % Profit before taxation (552,663) 553, % Taxation (104,776) (63,221) 66% Profit/(loss) for the period (657,439) 490, % Other comprehensive income Item that are or may be reclassified to profit or loss Net change in fair value of available-for-sale financial assets (64,614) 68,923 Exchange gain/(loss) from translation of foreign operations 87,833 17,020 Total other comprehensive income 23,219 85,943 Total comprehensive income for the period (634,220) 576,062 Profit attributable to Equity holders of the Company (596,498) 76,709 Non-controlling interest (60,941) 413,410 (657,439) 490,119 Total Comprehensive Income attributable to Equity holders of the Company (600,786) 159,920 Non-controlling interest (33,434) 416,142 (634,220) 576,062 Basic/diluted Earnings(loss) per Share - Rs. (0.16) 0.02

3 Income Statements Company Quarter ended 30th June % Change (Un Audited) (Un Audited) Rs.000 Rs.000 Revenue/Income 5,380 1, % Cost of sales - - Gross profit 5,380 1, % Other income , % Administrative expenses (19,864) (11,767) 69% Finance income 166,685 56, % Finance cost (310,902) (267,980) - 16% Profit before taxation (157,846) 140, % Taxation - - Profit/(loss) for the period (157,846) 140, % Other Comprehensive Income Net change in fair value of available-for-sale financial assets (64,624) 68,236 Total other comprehensive income (64,624) 68,236 (222,470) 208,658 Basic/diluted Earnings (loss) per Share - Rs. (0.04) 0.04

4 Statement of Financial Position Group Company As at As at As at As at (Un Audited) (Un Audited) (Un Audited) (Un Audited) ASSETS Rs.000 Rs.000 Rs.000 Rs.000 Non-Current Assets Property, plant and equipment 28,078,268 26,456,644 25,468 23,824 Investment property 8,046,698 8,046,697 1,513,782 1,513,782 Intangible assets 1,541,621 1,543, Prepaid lease rentals 2,603,357 2,580, Bearer biological assets 1,231,008 1,212, Consumer biological assets 3,319,669 3,305, Investments in subsidiaries ,425,752 10,275,752 Investments in equity accounted investees 3,913 6,129 4,023 4,023 Other financial assets 1,453,181 1,391,370 1,006,073 1,022,072 Deferred tax assets 592, , ,870,434 45,157,111 12,975,098 12,839,453 Current Assets Inventories 541, , Trade and other receivables 2,137,057 3,382, , ,886 Loans to related parties - - 1,861,248 2,112,005 Amounts due from related parties 848, ,065 3,102,105 2,626,906 Income tax recoverable 13,635 14, Other financial assets 769, , , ,220 Cash and cash equivalents 1,727, ,151 2,282 12,704 6,038,280 5,671,816 5,336,814 5,156,434 Total Assets 52,908,714 50,828,927 18,311,912 17,995,887 EQUITY AND LIABILITIES Capital and Reserves Stated capital 7,705,000 7,705,000 7,705,000 7,705,000 Capital reserves 2,777,292 2,781, , ,084 Retained earnings 6,547,347 7,143, , ,966 Equity Attributable to Equity holders of the Company 17,029,639 17,630,425 8,620,580 8,843,050 Non- controlling interest 7,803,875 7,387, Total Equity 24,833,514 25,017,687 8,620,580 8,843,050 Non-Current Liabilities Interest bearing borrowings 4,906,084 4,806,890 84, ,941 Finance lease obligations 53,360 51, Retirement benefit obligations 676, ,091 1,513 1,513 Deferred tax liabilities 1,312,829 1,312, Deferred income 154, , Loans from related parties 3,580 4, ,106,584 7,026,924 86, ,066 Current Liabilities Trade and other payable 2,840,746 2,665,820 27, ,284 Interest bearing loans and borrowings 1,854,797 1,837, , ,960 Finance lease obligations 4,317 11, Loans from related parties 2,661,392 1,905,097 5,662,015 5,903,600 Amounts due to related parties 12,997,917 11,894,004 3,237,006 2,159,667 Income tax payable 331, , Other short term interest bearing liabilities 146,612 52, Bank overdraft 131, ,036 8,161-20,968,616 18,784,316 9,604,430 8,901,771 Total Equity and Liabilities 52,908,714 50,828,927 18,311,912 17,995,887 Net Assets per Share (Rs.) The Statement of Financial Position as at 30th June and related Statements of Comprehensive Income, Changes in Equity and Cash Flow for the period ended 30th June 2018 are drawn up from the unaudited Financial Statements of the Company, its Subsidiaries and Associates, and they provide the information required by the Colombo Stock Exchange. The Board of Directors is responsible for the preparation and presentation of these Financial Statements. The Chief Financial Officer, LOLC Group certifies that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 7 of Sgd.. Mrs.S.S. Kotakadeniya Chief Financial Officer, LOLC Group Signed for and on behalf of the Board. Sgd.. Director Colombo 14th August 2018 Sgd.. Director

5 Statement of Changes in Equity Stated Revaluation Foreign currency Fair valuation Retained Total Non- controlling Total capital reserve on translation Reserve reserve earnings interest equity PPE Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Balance as at 1st April ,705,000 1,660, ,970 (40,221) 6,392,183 15,825,741 6,106,454 21,932,195 Profit/(loss) for the period ,709 76, , ,119 Other comprehensive income ,366 68,845-83,211 2,732 85,943 Adjustments due to changes in group holdings , ,846 (766,653) (615,807) Balance as at 30th June ,705,000 1,660, ,336 28,624 6,619,738 16,136,507 5,755,943 21,892,450 Group Attributable to Equity holders of the Company Balance as at 1st April ,705,000 2,576, ,123 7,953 7,143,530 17,630,425 7,387,262 25,017,687 Profit/(loss) for the period (596,498) (596,498) (60,941) (657,439) Other Comprehensive income ,326 (64,614) - (4,288) 27,507 23,219 Realized revaluation on disposal - (315) Share issue by subsidiaries to non-controlling interests , ,047 Balance as at 30th June ,705,000 2,576, ,449 (56,661) 6,547,347 17,029,639 7,803,875 24,833,514 Stated Revaluation Fair valuation Retained Total capital reserve on PPE reserve earnings Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Balance as at 1st April ,705, ,097 (35,980) 787,422 8,631,539 Profit/(loss) for the Period , ,422 Other Comprehensive income ,236-68,236 Balance as at 30th June ,705, ,097 32, ,844 8,840,197 Company Balance as at 1st April ,705, ,989 10, ,966 8,843,050 Profit/(loss) for the Period (157,846) (157,846) Other Comprehensive income - - (64,624) - (64,624) Balance as at 30th June ,705, ,989 (54,529) 769,120 8,620,580

6 Cash Flow Statements Group Company Quarter ended 30th June Quarter ended 30th June Rs.000 Rs.000 Rs.000 Rs.000 (Un Audited) (Un Audited) (Un Audited) ( Un Audited) Cash Flows from Operating Activities Profit/(loss) before taxation (552,663) 553,340 (157,846) 140,422 Adjustment for: (Gain)/loss on disposal of other financial assets - (892,629) - - Share of profit/(loss)of equity accounted investees ( Net of tax) 2,216 (558) - - Amortization of deferred income (2,487) (3,221) - - (Gain)/loss from change in fair value of investments (529) (361) - (361) Depreciation/Amortization 129, , Provision for retirement benefit obligations 3,076 11, Interest Income (67,391) (45,494) (166,685) (56,673) (Gain)/Loss on disposal of subsidiaries (362,062) Interest expense 585, , , ,980 Operating profit before working capital changes 96, ,643 (13,263) (10,330) Working capital changes (Increase)/decrease in inventories (96,406) 12, (Increase)/decrease in trade and other receivable 1,245,718 (584,723) (13,786) (24,577) (Increase)/decrease in amounts due from related parties (192,933) (30,547) (475,199) (35,137) Increase/(decrease) in amounts due to related parties 1,103,913 (1,382,232) 1,077,339 (2,601,617) Increase/(decrease) in trade and other payables 174,926 (243,454) (141,149) (158,991) Cash generated from/ (used in) operations 2,332,172 (1,978,875) 433,942 (2,830,652) Interest paid (585,649) (507,154) (310,902) (267,980) Income tax paid (15,092) (6,458) - - Retiring gratuity paid (33,842) (43,012) - - Net cash flows generated from/ (used) operating activities 1,697,589 (2,535,499) 123,040 (3,098,632) Cash flows from investing activities Acquisition of property, plant and equipment (1,688,551) (410,065) (2,010) (8,954) Investment in subsidiaries - - (150,000) - Investment in investment properties - (366) - - Acquisition of leasehold properties (22,879) (9,400) - - Acquisition of non-controlling interest - (615,807) - - Share issue to non- controlling interest 450, Capital grants received 12, Investment in bearer biological assets (18,816) (20,795) - - Investment in consumer biological assets (13,751) 3, Proceeds from/investment in other financial assets - 1,936, Investment in other financial assets (150,258) (1,111,146) (1,199) (863) Net proceeds to loans to related parties - (965,833) 250,757 (794,799) Net proceeds/(investments) of long term investments (98,917) 7, Interest received 67,391 45, ,685 56,673 Net cash flows generated from/ (used) in investing activities (1,463,128) (1,139,327) 264,233 (747,943) Cash flows from financing activities Proceeds/(repayments) of interest bearing borrowings 116, ,766 (164,139) (928,528) (Repayments)/Proceeds short term borrowings 94,447 (57,223) - - Net proceeds from loans from related parties 755,868 (1,657,482) (241,585) 4,750,256 Repayment of finance lease liabilities (5,717) (14,367) (132) (165) Net cash flows generated from financing activities 961,053 (911,306) (405,856) 3,821,563 Net increase / (decrease) in cash and cash equivalents during the period 1,195,514 (4,586,132) (18,583) (25,012) Cash and cash equivalents at the beginning of the period 401,115 4,754,901 12,704 4,268 Cash and cash equivalents at the end of the period 1,596, ,769 (5,879) (20,744) Analysis of cash and cash equivalents at the end of the period Cash at bank and in hand 1,727, ,472 2,282 2,468 Bank overdraft (131,271) (279,703) (8,161) (23,212) 1,596, ,769 (5,879) (20,744)

7 Notes to the Financial Statements 1 Corporate Information Browns Investments PLC ( Company ) is a public limited company incorporated and domiciled in Sri Lanka, and listed on the Colombo Stock Exchange. The registered office of the Company is located at 481, T B Jayah Mawatha, Colombo 10. The Business Office of the Company is located at 34, Sir Mohamed Macan Marker Mawatha, Colombo 03. The Interim Financial Statements of the Group and the Company for the period ended 30th June 2018 was authorised for issue by the Board of Directors on 14th August Basis of Preparation The Interim condensed Financial Statements of the Company & Group have been prepared in accordance with the Sri Lanka Accounting Standards (SLFRS/LKAS) which complies with the Sri Lanka Accounting Standard - LKAS 34, Interim Financial Reporting. These Interim Financial statements should be read in conjunction with the annual financial statements for the year ended 31st March The presentation and classification of the Financial Statements of the previous year have been amended, where relevant, for better presentation and to be comparable with those of the current period. 2.1 New Standards effective from 01st January 2018 a) SLFRS 9 - Financial Instruments Sri Lanka Accounting Standard SLFRS 9 on Financial Instruments, which replaces the existing guidance on LKAS 39 on Financial Instruments: Recognition and Measurement has become effective for annual reporting periods beginning on or after January 01, The new standard SLFRS 9 bringing together all three aspects of the accounting for financial instruments; classification and measurement; impairment; and hedge accounting. Based on the assessment performed, the Group concluded that SLFRS 09 does not have a material impact on the Group's Consolidated Financial Statements. b) SLFRS 15 - Revenue from Contracts with Customers SLFRS 15 supersedes LKAS 11 Construction Contracts, LKAS 18 Revenue and related Interpretations and it applies to all revenue arising from contracts with customers, unless those contracts are in the scope of other standards. The new standard establishes a five-step model to account for revenue arising from contracts with customers. Based on the assessment performed, the Group concluded that SLFRS 15 does not have a material impact on the Group s Consolidated Financial Statements. 3 Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group s other components. All operating segments operating results are reviewed regularly by Group Board of Directors to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. Segment Information - Group Investments Leisure & Travel Construction Plantation Renewable energy Real estate Adjustments Total Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Revenue/income - 41, , ,536 76,086 27, , , , ,076 55,173 55,533 (302) (40,033) 961,085 1,179,463 Cost of sales - - (129,386) (86,086) (48,217) (44,236) (434,839) (572,103) (51,515) (47,225) (3,403) (2,685) - (667,360) (752,335) Gross profit - 41, , ,450 27,869 (16,490) 24, ,110 51,109 70,851 51,770 52,848 (302) (40,033) 293, ,128 Other income 9,867 1,263,957 2,517 17, ,037 66,407 4, (13,279) (369,816) 63, ,704 Finance income Share of profit/ (loss) of equity accounted investees 439, ,110 16,661 2, ,546 4,345 (405,083) (251,709) 67,391 45,494 (2,216) (2,216) 558 Expenses (510,684) (434,594) (588,262) (458,079) (38,957) (25,862) (143,937) (180,124) (48,377) (53,502) (63,146) (37,994) 418, ,611 (974,698) (898,544) Profit before taxation (63,107) 1,161,423 (430,458) (259,361) (10,128) (41,773) (60,248) 26,393 7,107 17,406 4,169 19,199 - (369,947) (552,663) 553,340 Taxation (68,689) (61,843) (8,485) - (1,242) (161) (21,600) - (406.82) - (4,353) (1,217) - - (104,776) (63,221) Profit after taxation (131,796) 1,099,580 (438,943) (259,361) (11,370) (41,934) (81,848) 26,393 6,701 17,406 (183) 17,982 - (369,947) (657,439) 490,119 Segment Assets Non-current assets 23,625,559 22,802,646 34,360,696 24,463, , ,713 5,780,178 5,442,962 2,557,794 2,712,817 6,971,321 5,588,139 (27,144,718) (24,172,580) 46,870,434 37,001,083 Current assets 14,012,004 11,998,161 5,040,785 2,132, , , , , , , ,468 1,546,766 (15,000,661) (10,783,467) 6,038,280 5,731,837 37,637,564 34,800,807 39,401,481 26,595,931 1,568, ,022 6,248,773 5,939,703 2,671,372 2,837,599 7,526,789 7,134,905 (42,145,380) (34,956,047) 52,908,714 42,732,920 Segment Liabilities Non-current liabilities 92, ,894 4,144,075 2,467,517 34,709 29,593 2,400,006 1,682,885 1,454,783 1,724, , ,399 (1,351,900) (145,000) 7,106,584 6,677,400 Current liabilities 14,034,830 10,571,776 16,315,733 9,439,154 1,047, ,304 2,617,187 3,063, , , ,516 1,349,230 (13,869,267) (10,793,614) 20,968,616 14,163,070 14,127,114 11,158,670 20,459,808 11,906,671 1,081, ,897 5,017,193 4,746,428 1,817,135 2,023, ,143 1,680,629 (15,221,167) (10,938,614) 28,075,200 20,840,470

8 Notes to the Financial Statements 4 Stated Capital Stated Capital is represented by number of shares in issue as given below: Ordinary Shares ( Nos.000) 3,720,000 3,720,000 5 Contingent Liabilities There has not been a significant change in the nature of the contingent liabilities, which were disclosed in the Annual Report for the year ended 31st March Earnings per Share The computation of the Basic Earnings per Ordinary Share has been done based on net profit attributable to ordinary shareholders for the year, divided by weighted average number of ordinary shares in issue as at the balance sheet date and calculated as follows. For the quarter Group Company Net Profit / (loss) attributable to ordinary shareholders ( Rs.000) Weighted average number of ordinary shares in issue (Nos.) Basic/diluted earnings per ordinary share (Rs.) (596,498) 76,709 (157,846) 140,422 3,720,000,000 3,720,000,000 3,720,000,000 3,720,000,000 (0.16) 0.02 (0.04) Events after the reporting date No circumstances have arisen since the reporting date which would require adjustments or disclosures in the Interim Financial Statements other than those disclosed below. Amalgamation with Browns Capital PLC The Board of Directors of Browns Investments PLC at its meeting held on 22nd May 2018 approved the amalgamation with its sub-subsidiary Browns Capital PLC subject to Colombo Stock Exchange, Shareholders and other requisite approvals. Browns Investments PLC will be the remaining entity after the amalgamation. Browns Investments PLC will issue shares to the shareholders of Browns Capital PLC at a ratio of two shares of Browns Investments PLC to the each share of Browns Capital PLC.

9 Notes to the Financial Statements 8 Share Information 8.1 Market Price per Share The market value of an ordinary share of Browns Investments PLC was as follows: Rs. Rs. Last traded price recorded for 3 months ended Highest price recorded for 3 months ended Lowest price recorded for 3 months ended Public Share Holdings as at 30th June 2018 No. of shares held by public - 745,954,781 No. of public shareholders - 8,301 Percentage of shares held by the Public % Float adjusted market capitalisation (Rs' 000) - 1,790,064 Under which option the listed entity complies-option Twenty Major Shareholders Name of Share holders Number of (%) Shares 1 Brown & Company PLC A/C No: 03 1,200,000, LOLC Investments Ltd 509,855, Oxford Capital (Pvt) Ltd 370,000, Mrs. Pubudhu Saranga Wijekumari Rupasinghe 277,722, Commercial Trust Technologies (Pvt) Ltd 266,710, Brown & Company PLC A/C No: ,334, Dr. Ruwanpura Rohitha De Silva 111,592, Lanka Century Investments PLC 106,000, LOLC Finance PLC/Mrs. J.M.S. Rohini 89,904, Commercial Bank of Ceylon PLC/Mr. S. V. Somasunderam 50,000, Seylan Bank PLC / Brown & Co PLC 49,377, Mr. Ishara Chinthaka Nanayakkara 40,000, Capital Trust Holdings Ltd 34,174, Lanka Orix Leasing Co PLC 28,688, Hatton National Bank PLC/ Capital Trust Holdings Limited 26,881, Mr. Don Nimal Nayana Lokuge 26,207, Ceylinco General Insurance Ltd 20,000, Mr. Bhagwan Wassiamal Kundanmal 17,416, National Savings Bank 13,017, Pan Asia Banking Corporation/ Mr. A.C.Jayasinghe 12,589, Total 3,479,473, Directors' share holdings Number of Shares Mr. I.C. Nanayakkara 40,000,000 Mr. W.D.Kapila Jayawardena - Mrs. K.U. Amarasinghe - Mr. D.S.K Amarasekera - Mr. S. Furkhan - Dr. J.M. Swaminathan - 40,000,000

10 Corporate Information Name of the Company Browns Investments PLC Legal Form A Public Limited Liability Company incorporated in Sri Lanka on 10th November 2008 under the Companies Act No.07 of 2007 and the Company was listed on the Diri Savi Board of the Colombo Stock Exchange on 26th July Company Registration Number PV 66136PB/PQ Board of Directors I.C. Nanayakkara -Executive Chairman W.D.Kapila Jayawardena-Non Executive Director Mrs. K.U. Amarasinghe-Non Executive Director D.S.K. Amarasekera - Non Executive Director S. Furkhan - Independent Non Executive Director Dr. J.M. Swaminathan-Independent Non Executive Director Secretaries L O L C Corporate Services (Pvt) Ltd 100/1, Sri Jayawardenepura Mawatha, Rajagiriya Tel: Fax No. : Registered Office No. 481, T.B. Jayah Mawatha, (Darley Road), Colombo 10 Tel: Business Address 100/1, Sri Jayawardenepura Mawatha Rajagiriya Fax No. : Tel: Website: Auditors Messrs. KPMG Chartered Accountants No 32 A, Sir Mohamed Macan Marker Mawatha P.O.Box 186 Colombo 3. Bankers Bank of Ceylon-Head Office Branch Hatton National Bank PLC Nations Trust Bank PLC Sampath Bank PLC Seylan Bank PLC Union Bank of Sri Lanka