Ceylon Beverage Holdings PLC. Interim Condensed Financial Statements for the First Quarter ended 30th June 2014

Transcription

1 Ceylon Beverage Holdings PLC Interim Condensed Financial Statements for the First Quarter ended 30th June 2014

2 BOARD OF DIRECTORS AS AT 30TH JUNE 2014 Mr. L. C. R. de C Wijetunge (Chairman) Mr. H. Selvanathan (Deputy Chairman) Mr. M. Selvanathan (Director/ Alternate Director to Mr. H. Selvanathan) Mr. S. K. Shah (Chief Executive Officer) Mr. D. C. R. Gunawardena Mr. D. A. Cabraal Mr. H. J. Andersen

3 REVIEW A turnover of Rs.6.9 billion was recorded for the 3 months ended 30th June2014 compared to Rs.6.21 billion for the period April to June 2013, an improvement of 11%. This was driven mainly by an increase in Excise Duty, which came in to effect during the 2nd quarter of the previous financial year and a growth in tourist arrivals during the 1st quater. The Group recorded a pre-tax profit of Rs million during the 1st quarter of the financial year 2014/15. The increase in profits was mainly a result of Lion Brewery ceasing the import of canned beer. As Shareholders are aware, until September 2013 that Company resorted to imports of canned beer in order to meet market demand. This was done at a substantial expense to that Company but since it has now stopped, margins have increased accordingly. As announced previously, Lion Brewery together with its newly formed subsidiary Pearl Springs (Private) Limited entered into a Sale & Purchase Agreement with Cargills (Ceylon) PLC & Millers Brewery Limited to acquire the business of the latter Company. At present, the due diligence process is underway and is expected to be completed shortly.

4 STATEMENTS OF FINANCIAL POSITION Company Group As at 30th June In Rs.'000s ASSETS Non-Current Assets Property, plant & equipment 124, , ,528 12,387,315 9,055,288 12,065,404 Intangible assets ,124 47, ,534 Investments in subsidiaries 1,660,084 1,520,896 1,660, Total Non-Current Assets 1,784,478 1,645,827 1,784,612 12,671,439 9,103,081 12,363,938 Current Assets Inventories - - 2,388,639 2,123,856 2,695,021 Trade & other receivables 15,507 15,122 11,981 2,604,885 2,697,768 2,651,284 Amounts due from related companies 358, , ,058-2,081 - Short term investments ,558,589 - Cash and cash equivalents 1,589 2,337 1,645 6,153,887 4,874,877 6,873,229 Total Current Assets 375, , ,684 11,147,411 15,257,171 12,219,534 Total Assets 2,160,095 2,053,625 2,132,296 23,818,850 24,360,252 24,583,472 EQUITY AND LIABILITIES Equity Stated capital 533, , , , , ,384 Capital reserves 126, , , , , ,331 Revenue reserves 874, , ,904 2,655,336 2,000,049 2,424,191 1,534,778 1,523,173 1,522,702 3,681,051 3,025,764 3,449,906 Equity Attributable To Equity Holders of the Company Non Controlling Interest ,543,163 2,806,706 3,310,201 Total Equity 1,534,778 1,523,173 1,522,702 7,224,214 5,832,470 6,760,107 Non Current Liabilities Debentures (Note 4) ,597,600 2,798,800 2,798,800 Loans and borrowings 366,800 15, ,700 2,373,697 2,297,687 2,699,390 Employee benefits ,579 79,246 93,899 Deferred tax liabilities ,255, ,109 1,203,836 Total Non- Current Liabilities 366,800 15, ,700 6,321,967 6,023,842 6,795,925 Current Liabilities Trade and other payables 9,429 9,148 8, , , ,714 Amounts due to related companies ,170 22,468 54,652 Refundable deposits ,076, ,818 1,044,123 Tax liabilities 18,597 14,559 14, , , ,554 Debentures (Note 4) , , ,974 Loans and borrowings 110,298 22, ,577 6,415,427 3,717,707 6,980,227 Bank overdraft 120, ,245 75, ,270 5,930, ,196 Total Current Liabilities 258, , ,894 10,272,669 12,503,940 11,027,440 Total Liabilities 625, , ,594 16,594,636 18,527,782 17,823,365 Total Equity and Liabilities 2,160,095 2,053,625 2,132,296 23,818,850 24,360,252 24,583,472 Net assets per ordinary share (Rs.) The above figures are provisional and subject to audit. I certify that the above Financial Statements comply with the requirements of Companies Act No.07 of (Sgd.) D.R.P. Goonetilleke Head of Finance The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Approved and signed on behalf of the Managers Approved and signed on behalf of the Board (Sgd.) (Sgd.) (Sgd.) A. Weeratunge M. Selvanathan Suresh K. Shah Director Director Director Carsons Management Services (Private) Ltd. 06th August 2014

5 CONDENSED INCOME STATEMENT - COMPANY In Rs.'000s Three Months Ended Year Ended Change % (Audited) Revenue 33, ,198 (81) 282,694 Cost of Sales Gross Profit 33, ,198 (81) 282,694 Administrative Expenses (2,278) (3,493) (35) (13,577) Profit from Operations 31, ,705 (82) 269,117 Finance Income (24,991) Finance Costs (14,385) (18,584) (23) (70,355) Net Finance Costs (14,385) (18,584) (23) (95,346) Profit Before Taxation 17, ,121 (89) 173,771 Income Tax (5,160) (3,430) 50 (16,551) Profit After Taxation 12, ,691 (92) 157,220 Other Comprehensive Income Total Comprehensive Income 12, ,691 (92) 157,220 Earnings per Ordinary Share (Rs.) Dividend per Ordinary Share (Rs.) 7.00 Figures in brackets indicate deductions.

6 CONDENSED INCOME STATEMENT - GROUP In Rs.'000s Three Months Ended Year Ended Change % (Audited) Revenue 6,905,432 6,214, ,846,535 Cost of Sales (5,063,579) (4,754,499) 7 (19,685,529) Gross Profit 1,841,853 1,460, ,161,006 Other Income 4,233 11,398 (63) 23,631 1,846,086 1,471, ,184,637 Distribution Expenses (774,836) (705,255) 10 (2,936,115) Administrative Expenses (215,883) (258,088) (16) (880,351) Other Expenses (42,907) (38,909) 10 (76,829) Profit from Operations 812, , ,291,342 Finance Income 123, ,279 (17) 632,375 Finance Costs (211,771) (228,120) (7) (861,445) Net Finance Income/(Costs) (88,613) (78,841) 12 (229,070) Profit Before Taxation 723, , ,062,272 Income Tax (259,740) (150,195) 73 (893,360) Profit After Taxation 464, , ,168,912 Other Comprehensive Income (1,121) Total Comprehensive Income 464, , ,167,791 Profit Attributable to - Equity Holders of the Company 231, , ,508 - Minority Shareholders 232, , ,404 Profit Available for Appropriation 464, , ,168,912 Earnings per Ordinary Share (Rs.) Dividend per Ordinary Share (Rs.) 7.00 Figures in brackets indicate deductions.

7 STATEMENTS OF CHANGES IN EQUITY In Rs.'000s Attributable to Equity Holders of the Parent Non- Stated Capital Revaluation Reserve General Capital Reserve Revenue Reserve Retained Profits Total Controlling Interests Total Equity COMPANY Balance as at 1st April , ,638 5, , ,427 1,512,399-1,512,399 Total Comprehensive Income Profit for the period , , ,691 Other comprehensive income for the year Total Comprehensive income for the year , , ,691 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends (146,917) (146,917) - (146,917) Balance as at 30th June , ,638 5, , ,201 1,523,173-1,523,173 Balance as at 1st April , ,638 5, , ,427 1,512,399-1,512,399 Total Comprehensive Income Profit for the period , , ,220 Other comprehensive income for the year Total Comprehensive incpme for the year , , ,220 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends (146,917) (146,917) - (146,917) Balance as at 31st March , ,638 5, , ,730 1,522,702-1,522,702 Balance as at 1st April , ,638 5, , ,730 1,522,702-1,522,702 Total Comprehensive Income Profit for the period ,076 12,076-12,076 Other comprehensive income for the year Total Comprehensive incpme for the year ,076 12,076-12,076 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends Balance as at 30th June , ,638 5, , ,806 1,534,778-1,534,778 GROUP Balance as at 1st April , ,555 5, ,174 1,860,012 3,069,901 2,822,132 5,892,033 Total Comprehensive Income Profit for the year 102, , , ,154 Other comprehensive income for the year - Total Comprehensive income for the year , , , ,154 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends (146,917) (146,917) (152,800) (299,717) Balance as at 30th June , ,555 5, ,174 1,815,875 3,025,764 2,806,706 5,832,470 Balance as at 1st April , ,555 5, ,174 1,860,012 3,069,901 2,822,132 5,892,033 Total Comprehensive Income Profit for the year 527, , ,404 1,168,912 Other comprehensive income for the year (586) (586) (535) (1,121) Total Comprehensive incpme for the year , , ,869 1,167,791 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends (146,917) (146,917) (152,800) (299,717) Balance as at 31st March , ,555 5, ,174 2,240,017 3,449,906 3,310,201 6,760,107 Balance as at 1st April , ,555 5, ,174 2,240,017 3,449,906 3,310,201 6,760,107 Total Comprehensive Income Profit for the year 231, , , ,107 Other comprehensive income for the year Total Comprehensive incpme for the year , , , ,107 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends Balance as at 30th June , ,555 5, ,174 2,471,162 3,681,051 3,543,163 7,224,214

8 STATEMENTS OF CASH FLOW In Rs.'000s Company Group Year Ended (Audited) (Audited) Net cash generated from/(used in) operating activities (12,414) 154, , ,635 1,013,284 1,796,365 Net cash used in investing activities - (41,179) (262,992) (464,386) 633,517 (2,337,721) Net cash (used in)/ generated from financing activities (32,408) (152,470) 315,981 (1,102,664) 4,572,350 8,204,372 Net (decrease)/increase in cash & cash equivalents (44,822) (39,471) 353,655 (606,415) 6,219,151 7,663,016 Cash & cash equivalents at the beginning of the period (73,782) (427,437) (427,437) 5,947,033 (1,715,983) (1,715,983) Cash & cash equivalents at the end of the period (118,604) (466,908) (73,782) 5,340,617 4,503,168 5,947,033 Analysis of cash and cash equivalents Cash and cash equivalents 1,589 2,337 1,645 6,153,887 10,433,466 6,873,229 Bank overdrafts (120,193) (469,245) (75,427) (813,270) (5,930,298) (926,196) (118,604) (466,908) (73,782) 5,340,617 4,503,168 5,947,033 The above figures are provisional and subject to audit

9 NOTES TO THE FINANCIAL STATEMENTS 1 CORPORATE INFORMATION Ceylon Beverage Holdings PLC is a public limited liability Company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The parent company is Carson Cumberbatch PLC (CCPLC). The Interim Consolidated Financial Statements comprise of the Company and its subsidiaries (together referred to as the "Group" and individually Group entities). The Subsidiaries of the Company are set out below. Subsidiary Controlling interest Lion Brewery (Ceylon) PLC 52.25% Pubs 'N Places (Private) Limited 99.9% Retail Spaces (Private) Limited 100% Luxury Brands (Private) Limited 100% The principal activities of the Group is brewing and marketing of high quality beers for both local & export markets and retailing of beer & alcohol products through its owned/managed wine shops & pubs. The Group is also engaged in the import & marketing of globally renowned high quality beer and spirits brands. 2 BASIS OF PREPARATION 2.1 Statement of Compliance The condensed Interim Financial Statements of the Company and Group have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34 Interim Financial Reporting. This Interim Financial Statement should be read in conjunction with the Annual Financial Statements for the year ended 31st March 2014 including the changes to accounting policies as a result of adapting to Sri Lanka Financial Reporting Standards,(" SLFRSs/LKASs ") 2.2 Basis of measurement The Financial Statements have been prepared on the historical cost basis and applied consistently with no adjustments being made for inflationary factors affecting the financial statements, except for the following; - Freehold Land and buildings are measured at cost at the time of acquisition and construction and subsequently at revalued amounts, which are the fair values at the date of revaluation less accumulated depreciation and impairment losses, if any. - Employee benefits are recognized as the net total of the plan assets, plus unrecognized past service cost and unrecognized actuarial losses, less unrecognized actuarial gains and the present value of the defined benefit obligation. 2.3 Functional Currency and Presentation Currency All values presented in the Financial Statements are in Sri Lankan Rupees Thousands (Rs.'000s) which is the Group's functional currency, unless otherwise indicated.

10 NOTES TO THE INTERIM FINANCIAL STATEMENTS 3 FINANCIAL COMMITMENTS AND CONTINGENT LIABILITY 3. 1 Finance Commitments Lion Brewery (Ceylon) PLC Document credits effected for foreign purchases of the Company as at 30th June 2014 amounting to Rs.84,906,321/-. (2013- Rs.700,251,202/-) 3.2 Contingencies Following legal matters are outstanding against the Group and no provision has been made in the Financial Statements in this regard. (i) Company In 2008 the Customs Department instituted a prosecution in the Fort Magistrate's Court (MC) in Case No. S/65898/07/B against the Company and its Directors for the recovery of Rs. 48,121,634/29 comprising of Rs.23,062,080/43 being the amount of Excise (Special Provision) Duty (the 'duty') purportedly in arrears during the period 1998/IVq to 2001/IIIq and Rs.25,059,553/86 as its penalty. The Company and the Directors filed an application for Writ in the Court of Appeal (CA) to quash the Certificate of Excise Duty in Default issued by the Director General of Customs and Excise Duty and obtained a Stay Order in respect of the proceedings of the Fort MC Case. A sum of Rs. 23,062,080/43 being the duty amount in dispute was paid to Sri Lanka Customs by the Company as required before submitting its appeal. Subsequently the CA Application was dismissed and the Company appealed against the Order to the Supreme Court and was granted Special Leave to Appeal by the Court. The Court also ordered the staying of all further proceedings in the MC Case until final hearing and determination of the Appeal. No provision has been made for the payment of penalty amounting to Rs.25,059,553/86, pending the Judgement from the Supreme Court in the said Leave to Appeal matter. (ii) Lion Brewery (Ceylon) PLC The Customs Department instituted a prosecution in the Magistrate's Court of Kaduwela in Case No /Customs against the Company and its directors to recover Excise Duty amounting to Rs.58,753,582/94 comprising of the disputed Excise Duty of Rs.29,376,791/47 and its penalty of Rs. 29,376,791/47. The Company and the directors have obtained a Stay Order in respect of the proceedings of the MC Kaduwela Case and filed an application for Writ in the Court of Appeal, to quash the Certificate of Excise Duty in Default and penalty issued by the DG of Customs and Excise Duty to recover the said sum. The Court of Appeal made an order against the Company refusing the writ of Certiorari prayed for and the Company has now preferred a Special Leave to Apppeal to the Supreme Court against the said order of the Court of Appeal. (iii) Contingent liabilities as at 30th June 2014 amount to Rs. 139,232,961/-. (2013 -Rs. 865,547,891/-), being bank guarantees given to Government bodies for operational purposes and shipping guarantees for clearing cargo pending the receipt of original documents. Apart from the above there were no other material contingent liabilities which would require adjustments to or disclosure in the Financial Statements. 4 Debentures The Lion Brewery (Ceylon) PLC issued 3,000,000 rated Unsecured Redeemable Debentures at the face value of Rs. 1,000/- each to raise Rs. 3,000,000,000/- on 17th June The interest is paid on 30th June, 30th September, 31st December and 31st March for a period of 5 years. The categories of Debentures and Proportion of each types of debenture in each category as at the reporting date are as follows. Category 01 Debentures - Floating Rate (Note 4.1) 804,800 Category 02 Debentures - Fixed Rate (Note 4.2) 1,994,000 2,798, Category 01 Debentures - Floating Rate Types in Category 01 Debentures Amount Rs. ('000) Type B 201,200 20% Type C 201,200 20% Type D 201,200 20% Type E 201,200 20% Proportion Interest Rate (From and out (per annum) of the payable Category 01 quarterly Debentures issued) AWPLR % AWPLR % AWPLR % AWPLR % Redemption From the Date of Allotment 24 Months (2 Years) 36 Months (3 Years) 48 Months (4 Years) 60 Months (5 Years) Total 804,800 Type A debentures amounting to Rs. 201,200,000/- were redeemed on June 16, 2014.

11 NOTES TO THE INTERIM FINANCIAL STATEMENTS 4.2 Category 02 Debentures - Fixed Rate Types in Category 02 Debentures Amount Rs. Proportion Interest Rate (From and out (per annum) of the payable Category 02 quarterly Debentures issued) AER (per annum) Type F 598,200 30% 13.50% 14.20% Type G 598,200 30% 13.75% 14.48% Type H 797,600 40% 14.00% 14.75% Total 1,994,000 Redemption From the Date of Allotment 36 Months (3 Years) 48 Month (4 Years) 60 Months (5 Years) 4.3 Composition of Debentures and interest Payable Classified under non current liabilities Debentures falling due after one year (Note 4.1 & 4.2) 2,597,600 Classified under current liabilities Debentures falling due within one year (Note 4.1 /Type B ) Debenture interest payable 201,200 83, ,608 5 COMPARATIVE FIGURES Comparative figures/information have been restated/reclassified where necessary in line with the changes to the new Sri Lanka Accounting Standards (SLFRS/LKAS). 6 STATED CAPITAL The Company's stated capital consists of 20,988,090 ordinary shares. 7 SEGMENTAL ANALYSIS The Group does not distinguish its products into significant components for different Geographical / Business segments as the differentiations are insignificant. 8 INVESTER INFORMATON Investor Information Quarter Ended Year Ended Share Information Price as at the end of the period (Rs.) Highest price (Rs.) Lowest price (Rs.) Trading Statistics No of Transactions No of Shares traded 11,232 17, ,153 Value of all shares traded (Rs. Mn.)

12 NOTES TO THE INTERIM FINANCIAL STATEMENTS 9 DIRECTOR'S SHAREHOLDINGS AS AT 30TH JUNE 2014 As at 30th June 2014 No. of Shares Mr. L.C.R. de C Wijetunge (Chairman) - Mr. H. Selvanathan (Deputy Chairman) 690 Mr. M. Selvanathan (Director/ Alternate Director to Mr. H. Selvanathan) 690 Mr. S. K. Shah (Chief Executive Officer) 2,632 Mr. D.C.R. Gunawardena 15 Mr. D. A. Cabraal 1,500 Mr. H. J. Andersen - 10 TWENTY MAJOR SHAREHOLDERS AS AT 30TH JUNE 2014 # Name Total Shares % 1 CARSON CUMBERBATCH PLC A/C NO.2 15,726, CARLSBERG A/S 1,676, GF CAPITAL GLOBAL LIMITED 1,543, HINL-JPMCB-BUTTERFIELD TRUST ( BERMUDA ) LIMITED 800, CACEIS BANK LUXEMBOURG S/A BARCA GLOBAL MASTER FUND 332, HSBC INTERNATIONAL NOMINEES LTD-SSBT-DEUSTCHE BANK AG SINGAPORE A/C , TRANZ DOMINION,L.L.C. 74, PERSHING LLC S/A CHAMBERS STREET GLOBAL FUND, LP 50, MR. H.W.M. WOODWARD 40, MRS. J.K.P. SINGH 37, CARSON CUMBERBATCH PLC A/C NO , EST OF LAT M. RADHAKRISHNAN (DECEASED) 24, GUINNESS MORISON INTERNATIONAL LIMITED 20, MR. H.A. PIERIS 17, SECRETARIAL SERVICES LIMITED 12, MR. N.J. GAMADIA 8, SEYLAN BANK LIMITED/PRIYANI DHARSHINI RATNAGOPAL 8, THE CEYLON DESICCATED COCONUT AND OIL COMPANY PVT LTD 8, MRS. M.S.K. WELIKALA 7, ADMIN.OF T A.C. ABDEEN (DECD) 7, PUBLIC HOLDING Percentage of shares held by the public as at 30th June 2014 was 16.92%. 12 EVENTS AFTER THE REPORTING PERIOD Subsequent to the reporting date, no circumstances have arisen which would require adjustments to or disclosure in the Financial Statements.

13 NOTES TO THE INTERIM FINANCIAL STATEMENTS 13 RELATED PARTY TRANSACTIONS The Group carried out transactions in the ordinary course of its business with parties who are defined as related parties in Sri Lanka Accounting Standard LKAS 24 - Related Party Disclosures, the details of which are reported below. The pricing applicable to such transactions is based on the assessment of risk and pricing model of the Group and comparable with what is applied to transactions between the Group and its unrelated customers Transactions with subsidiary Companies (a) Lion Brewery (Ceylon) PLC (LBCPLC) Messers. L.C.R.de C. Wijetunge, H.Selvanathan, S.K.Shah, D.C.R.Gunawardena, D.A. Cabraal, H.J Andersen Directors of the Company, are also Directors of Lion Brewery (Ceylon) PLC, with which the following contracts/ transactions have been entered into during the period by the Company in the normal course of business. (i) was charged Rs. Rs. 33,898,698/- ( Rs. 32,722,529/-) as royalty in accordance with the licensed brewing agreement with the Company. (ii) As at 30th June 2014 the balance receivable to the Company by the Lion Brewery (Ceylon) PLC is Rs. 10,844,090/-. ( Rs. 9,239,171/-) (b) Pubs 'N Places (Private) Limited (i) Mr. S.K. Shah, Director of the Company is also a Director of Pubs 'N Places (Private) Limited, to which the LBCPLC sold beer for a total value of Rs. 47,201,462/- during the period. ( Rs. 44,414,901/-) (ii) As at 30th June 2014 balance receivable from Pubs 'N Places (Private) Limited to the Company was 340,816,417/-. ( Rs. 366,422,138/ ) (c) Retail Spaces (Private) Limited (i) Messrs. S.K. Shah, C.P. Amerasinghe and D.R.P. Goonetilleke, Directors of the LBCPLC are also Directors of Retail Spaces (Private) Limited, to which the Company sold beer for a total value of Rs. 36,231,895/- ( Rs. 39,819,208/-) during the period. (ii) An amount of Rs. 6,860,951/- was receivable from Retail Spaces (Private) Limited to the Company as at 30th June ( ,677,637/-) (d) Luxury Brands (Private) Limited (i) Messrs. S.K. Shah, C.P. Amerasinghe and D.R.P. Goonetilleke, Directors of the LBCPLC are also Directors of Luxury Brands (Private) Limited, from which the LBCL obtain management services for a management fee amounting to Rs. 2,534,435/-. (2013- Rs. 2,355,830/-) (ii) An amount of Rs. 262,467,034/- was receivable from Luxury Brands (Private) Limited to LBCPLC as at 30th June ( Rs. 67,711,246/-) 13.2 Transactions with group entities (i) Messrs. H.Selvanathan and S.K.Shah,K. Selvanathan, Directors of the Company, are also Directors of Carsons Management Services (Private) Ltd., which provides support services to the Group. An amount of Rs.58,607,795/- (2013- Rs.51,951,828/-) was paid by the Group during the period to Carsons Management Services (Private) Limited which included Supporting Services fees of Rs. 57,448,970/-( Rs. 31,218,645/-) and other reimbursable expenses incurred by Carsons Management Services (Private) Limited on behalf of the Group Transactions with other related entities (a) Mr. H.J.Andersen, Director of the Company represent Carlsberg Brewery Malaysia Berhad with which the following contracts / transactions have been entered into by LBCPLC during the period in the normal course of business. (i) As per the licensed brewing agreement, a sum of Rs. 28,518,020/- ( Rs.22,461,120/-) was paid by LBCPLC as royalty during the period to Carlsberg A/S. (ii) During the period the LBCPLC purchased the part of its requirement of the raw material Aroma Hop from Carlsberg A/S amounting to Rs. 1,488,081/-. (iii) An amount of Rs. 83,169,798/- is payable to Carlsberg A/S by LBCPLC as at 30th June 2014 ( Rs. 22,461,120/-).

14 NOTES TO THE INTERIM FINANCIAL STATEMENTS 13 RELATED PARTY TRANSACTIONS (Contd) (b) Lion Brewery (Ceylon) PLC (LBCPLC) purchases a part of its requirement of the raw material rice from Ran Sahal (Private) Limited. The entire production of Ran Sahal (Private) Limited is exclusively sold to the LBCPLC. Towards this the LBCPLC advances funds to Ran Sahal (Private) Limited from time to time in against of future purchases. During the period the Company purchased rice for an amount of Rs.165,649,825/- ( Rs. 42,318,147/-). As at the reporting date an amount of Rs. 91,717,451/- ( Rs.85,506,445/-) has been advanced to Ran sahal (Private) Limited which remains to be settled from future purchases. (c) Messrs D.C.R. Gunawardene, Director of the LBCPLC, is also a Director of Equity Two PLC and Equity One with which the LBCPLC entered into transactions. (i) An amount of Rs. 6,857/- has been paid as parking fees to Equity Two PLC. ( Rs.17,143/-) (ii) An amount of Rs. 17,714/- has been paid as rental to Equity One PLC. ( Rs. Nil) (d) Messrs D.C.R. Gunawardene and Mr. H. Selvanathan, Directors of the LBCPLC, are also Directors of Carsons Air Line Services (Private) Limited and Pegasus Hotels of Ceylon PLC with which the group entered into transactions. (i) The Group purchased air line tickets and obtained other services from Carsons Air Line Services (Private) Limited for which amount of Rs. 43,400/- ( Rs.2,419,711/-) was paid during the period. (ii) The Group has obtained services from Pegasus Hotels of Ceylon PLC for which an amount of Rs. 10,000/- ( Rs. 17,400/-) was paid during the period. (e) Mr. D.A. Cabraal, Director of the LBCPLC is also a Director of the HNB PLC, From which during the period the Group obtained short - term loans / overdrafts for operational purposes. An amount of Rs. 4 Bn is payable to HNB PLC on account of outstanding short term loans as at 30th June 2014 (f) Mr. L.C.R. de C. Wijethunge, director of the Company, is also a director of Janashakthi Insurance PLC for which the Group has paid Rs. 13,490,952/-for it's services. (2013-4,590,490/-) Transactions with key management personnel (KMP) (I) According to Sri Lanka Accounting Standard 24 "Related Party Disclosures", key management personnel are those having authority and responsibility for planning and controlling the activities of the entity. Accordingly, the Directors of the Company and its parent company (including executive and non executive directors) and their immediate family members have been classified as KMP of the Company. (II) The compensation paid to key management personnel as short-term employment benefits and no other payments such as postemployment benefits, termination benefits and share based payments have been paid to key management personnel during the Period.

15 Corporate Information NAME OF THE COMPANY LEGAL ADVISERS Ceylon Beverage Holdings PLC Messrs. F.J.& G. De Saram (A Carson Cumberbatch Company) 216, De Saram Place Colombo 10 COMPANY REGISTRATION NUMBER Sri Lanka PQ 35 Tel: Fax: LEGAL FORM A public Quoted Company with Limited Liability AUDITORS Incorporated in Sri Lanka in 1910 Messrs. KPMG Chartered Accountants SUBSIDIARY COMPANIES No. 32A, Sir Mohamed Macan Markar Mawatha Lion Brewery (Ceylon) PLC Colombo 3 Pubs 'N Places (Private) Limited Sri Lanka Retail Spaces (Private) Limited Tel: Luxury Brands (Private) Limited Fax: Pearl Springs (Private) Limited [Incorporate on 20th May 2014] PARENT COMPANY Carson Cumberbatch PLC MANAGERS & SECRETARIES Carsons Management Services (Private) Limited No: 61, Janadhipathi Mawatha DIRECTORS Colombo 1 L. C. R. de C. Wijetunge (Chairman) Sri Lanka H. Selvanathan (Deputy Chairman) Tel : M. Selvanathan (Director/ Alternate Director to H. Selvanathan) Fax: S. K. Shah (Chief Executive Officer) D. C. R. Gunawardena REGISTERED OFFICE D. A. Cabraal No: 61, Janadhipathi Mawatha H. J. Andersen Colombo 1 Sri Lanka BANKERS Tel : Bank of Ceylon Fax: Citibank Commercial Bank CORPORATE OFFICE & BREWERY Deutsche Bank 254, Colombo Road, Biyagama DFCC Bank Sri Lanka Hatton National Bank Tel: (10 Lines) HSBC Fax: Nations Trust Bank National Development Bank GROUP WEBSITE Peoples' Bank Standard Chartered Bank Sampath Bank