KELANI TYRES PLC. (Reg: No. PQ 123) INTERIM FINANCIAL STATEMENTS FOR NINE MONTHS ENDED DECEMBER 31, 2018

Transcription

1 KELANI TYRES PLC (Reg: No. PQ 123) INTERIM FINANCIAL STATEMENTS FOR NINE MONTHS ENDED DECEMBER 31, 2018 Corporate Office 203, Union Place Colombo 02.

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Group Company Group Company Apr. -Dec. Apr. - Dec. Oct. -Dec. Oct. - Dec (Un audited) (Audited) (Un audited) (Audited) Revenue 289, , , ,436 86, ,886 85, ,036 Direct costs (264,770) (384,417) (261,859) (384,417) (80,001) (232,135) (78,962) (233,903) Gross margin 24,747 40,652 24,905 38,019 6,776 25,752 6,817 23,133 Other operating income 8,022 5, ,324 5,379 4,345 1,817 4,336 1,816 Administrative costs (38,134) (37,318) (38,057) (37,205) (11,055) (9,033) (11,015) (8,960) Management Expenses (22,558) (18,799) (22,558) (18,799) (9,632) (8,196) (9,632) (8,196) Depriciation (3,075) (4,476) (3,075) (1,828) (1,197) (3,586) (1,197) (938) Operating profit (30,999) (14,540) 128,540 (14,433) (10,763) 6,753 (10,691) 6,856 Finance Income 10,036 27,319 10,036 27,319 1,949 5,872 1,949 5,872 Finance costs (2,664) (3,719) (2,446) (3,315) (804) (1,213) (746) (1,097) Profit/(Loss) before tax (23,627) 9, ,130 9,571 (9,619) 11,412 (9,488) 11,631 Tax Profit/(Loss) after tax (23,627) 9, ,130 9,571 (9,619) 11,412 (9,488) 11,631 Share of results of JV 401, , , , Profit/(Loss) for the period 377, , ,130 9, , ,676 - (9,488) 11,631 Other comprehensive income: Items that may be subsequently reclasified to profit or (loss) Share of other comprehensive - 3, , ,312 1, Income/expenses from Joint Venture Total comprehensive income - -for the period, net of tax 381, , ,130 9, , ,997 (9,488) 11,631 Earning per share (for the period) (0.12) 0.14

3 CONSOLIDATED STATEMENT OF FINANCIAL POSSITION Group Company ASSETS (un-audited) (Audited) (un-audited) (Audited) Non-current assets Property, plant and equipment 44,211 30,687 43,931 31,009 Investment Property 376, , , ,000 Intangible assets Deferred income tax assets Investments in subsidiaries Investment in JV 3,917,006 3,671, , ,607 4,337,487 4,078, , ,657 Current assets Trade and other receivables 509, , , ,093 Income Tax Refund Cash and cash equivalents 162, , , , , , , ,578 Total assets 5,009,592 4,836,223 1,230,600 1,301,235 EQUITY AND LIABILITIES Equity attributable to equity holders Stated capital 402, , , ,000 Revaluation reserves Other reserves 486, , Retained earnings 4,058,724 3,878, , ,751 Total equity 4,948,330 4,767,686 1,170,850 1,235,722 Non - current liabilities Borrowings Retirement benefit obligations 4,096 4,344 4,096 4,344 5,039 5,288 4,096 4,344 Current liabilities Trade and other payables 12,700 9,887 12,604 9,694 Borrowings 472 1, Bank Overdraft 43,050 51,475 43,050 51,475 56,222 63,249 55,654 61,169 Total liabilities 61,261 68,537 59,749 65,513 Total equity and liabilities 5,009,592 4,836,223 1,230,600 1,301,235 Net Asset Value Per share I certify that these financial statements have been prepared in compliance with requirements of the Companies Act, No. 07 of sgd P. R. Mann Finance Officer The Board of Directors is responsible for the preparation and presentation of these Financial statements. Sgd Rohan T. Fernando Managing Director 28th January 2019 Sgd (Mrs). S. S Jayatilaka Director

4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (all amounts in Sri Lanka Rupees Thousands) Company Stated Revaluation Other Retained capital Reserve Reserve Earnings Total Balance at 1 April 2017 (audited) 402, ,012,381 1,415,352 Profit for the Period ,571 9,571 Dividend paid (201,000) (201,000) Balance at 31st Dec (Audited) 402, ,952 1,223,923 Balance at 1 April 2018 (Audited) 402, ,751 1,235,722 Profit for the Period , ,130 Dividend paid (201,000) (201,000) Balance at 31st Dec (un-audited) 402, ,879 1,170,850 KELANI TYRES PL AND ITS GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (all amounts in Sri Lanka Rupees Thousands) Group Stated Revaluation Other Retained capital Reserve Reserve Earnings Total Balance at 1 April 2017 (audited) 402, ,815 3,498,647 4,139,433 Profit for the Period , ,016 Other comprehensive income ,821 3, ,734 Dividend paid (201,000) (201,000) Balance at 31st Dec (Audited) 402, ,635 3,736,577 4,626,183 Balance at 1 April 2018 (Audited) 402, ,636 3,878,079 4,767,686 Profit for the Period , ,708 Other comprehensive income - - 3,936 3,936 Dividend paid (201,000) (201,000) Balance at 31st Dec (un-audited) 402, ,636 4,058,724 4,948,330

5 Cash flow statement Nine months ended Nine months ended 31 Dec Dec Group Company Group Company Cash flows from operating activities Cash generated from (used in) operations 213,620 51,946 (219,633) (222,126) Interest received 10,036 10,036 27,319 27,319 Interest paid (2,664) (2,446) (3,719) (3,315) Tax paid - - (114) - Gratuity paid (249) (249) - - Net cash generated from (used in) operating activities 220,742 59,287 (196,147) (198,122) Cash flows from investing activities Purchases of property, plant and equipment (27,341) (23,841) (12,076) (12,076) Dividend received - 159, Proceeds from sale of property, plant and equipment 10,201 10, Net cash (used in)/generated from investing activities (17,140) 145,680 (12,076) (12,076) Cash flows from financing activities Dividend payment (201,000) (201,000) (201,000) (201,000) Change in Bank borrowings (1,415) - (1,415) - Net cash (used in)generated from financing activities (202,415) (201,000) (202,415) (201,000) Net (decrease)/increase in cash and cash equivalents 1,187 3,967 (410,638) (411,198) Movement in cash and cash equivalents At the start of period 118, , , ,507 (Decrease)/increase 1,187 3,967 (410,638) (411,198) At the end of period 119, , , ,310

6 NOTES TO THE INTERIM FINANCIAL STATEMENTS: (all amounts are in Sri Lanka Rupees thousands) 1 General Information Company The company is a limited liability company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The address of its registered office is P.O.Box 8, Nungamugoda, Kelaniya. Group Joint Venture (JV): The JV's principal activity is the manufacture of tyres and tubs locally and its sale thereof locally and internationaly. Subsidiary company: The principal business activity is to hire out motor vehicles. 2 Basis of preparation The Interim Financial Statements have been prepared in compliance with Sri Lanka Accounting Standard (SLAS)/LKAS-34 Interim Financial reporting.these interim financial statements should be read in conjunction with the annual financial statement for the year ended 31 Mar. 2018, 3 Significant Accounting Policies The Company has adopted consistent accounting policies and method applied for the year ended 31st March 2018 and the presentation and classification of the financial statements of the previous year have been ammended where relevent for better presentation and to be comparable with those of the current year. 4 Stated Capital Stated Capital represented by issued shares is given below: 12/31/18 3/31/18 3/31/17 Ordinery shares as at 80,400 80,400 80,400 5 There have been no other events subsequent to the Balance Sheet date, which require disclosure in the Interim Financial Statements. 6 Provision was made for taxation by joint venture CEAT SRI LANKA as follows: Rs. Profit before Tax JV 1,043,075,076 Less: Provision for Tax (240,404,457) Profit after Tax 802,670,619 7 There were no Contingent Liabilities or Contingent Assets since the Balance Sheet date. 8 There were no Liability towards Management fee or any similar expenditure not provided for in the Interim Financial Statements. 9 Dividend per share Group Company 12/31/18 12/31/17 12/31/18 12/31/17 Dividend received from the JV Nill Nill 159,320 Nill Dividend declared & paid to shareholders 201, , , ,000 Number of shares in issue (thousands) 80,400 80,400 80,400 80,400 Dividend per share - (Rs.) The figures have been presented in these financial statements are provisional and subject to audit, and also comparative figures have been reclasified where necessary. 11 Market price per share: for the Nine months ended 31st Dec Rs. Rs. Highest Price (01/11/18 & 02/10/17) Lowest Price (15/10/18 & 27/12/17) Last Traded Price

7 KELANI TYRES PLC TOP 20 SHARE HOLDERS LIST AS AT No. Name No of Shares % 1 SILVERSTOCK LIMITED 36,170, BANCK OF CEYLON A/C CEYBANK UNIT TRUST 8,037, MR. GANARAJAH N 6,441, MR. UDESHI M M & MR. UDESHI H M 4,072, LOMBARD ODIER DARIER HENTSCH AND CIE 1,933, BANK OF CEYLON ACCOUNT CEYBANK - CENTURY GROWTH FUND 1,649, EMPLOYEES PROVIDENT FUND 1,553, MR. PUSPARAJ N. & MRS. PUSPARAJ. K 1,255, BANK OF CEYLON NO. 1 ACCOUNT 1,016, ASSETLINE LEASING CO. LTD / DON AND DON HOLDINGS PVT LTD 655, MRS. SARASWATHI V. 601, MR. S. VASUDEVAN 537, MR. R. C. D. DE SILVA 525, Mr. TIRATHDAS A. 441, ARUNA ENTERPRISES (PVT) LTD 437, HATTON NATIONAL BANK PLC / A. SITHAMPALAM 386, MR. POBRAN B. 350, MR. DANGAMPOLA G./MRS. DANGAMPOLA N. P. 341, RANSIRI ENTERPRISES PRIVATE LTD 310, MRS. N. MULJIE 291, PUBLIC HOLDING The percentage of shares held by the public as at 31st December 2018 is % comprising of 8,227 shareholders (31st December % comprising of 8,259 shareholders) FLOAT ADJUSTED MARKET CAPITALIZATION AS AT 31ST DECEMBER RS. 1,568,705,678/30 The Company is in compliance with Option 5 of Section (a) of the Listing Rule of the Colombo Stock Exchange pertaining to minimum public holding. SHARE HOLDINGS BY THE DIRECTORS AS AT 31st DECEMBER 2018 Names of Directors No of Shares as at 31st Dec % Mr. Chanaka De Silva 525, % Mr. Rohan T. Fernando Nil Mr. T. Bevan Perera % Mr. D. S. Kamantha Amarasekera Nil Mrs. S. S. Jayatilaka % Mr. Eraj T. Fernando Mr. R. P. Weerasooria Nil Nil

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS (cont..): Joint Venture Performance The assets and liabilities and the income and the expenses of the Joint venture as follows: Summarised Financial Position Non-Current Assets 5,351,798 4,555,541 Current Assets 5,572,505 4,887,855 Total Assets 10,924,303 9,443,396 Capital and Reserves 7,834,013 7,079,592 Non-Current Liabilities 1,091, ,845 Current Liabilities 1,998,571 1,578,959 Total Equity & Liabilities 10,924,303 9,443,396 Summarised Income Statement Apr. to Dec. Apr. to Dec. Production (MT) 12,215 12,739 Total Sales (MT) 12,772 12,369 Domestic Sales 5,782,884 6,217,908 Export Sales 1,831,729 1,450,604 Total Sales 7,614,613 7,668,512 Cost of Sales (5,783,445) (5,452,439) Contribution 1,831,168 2,216,073 Distribution/Administrative Cost (884,901) (1,264,204) Finance Cost less income 51,427 84,274 Other Operating Income 45,381 35,002 Pofit BeforeTax 1,043,075 1,071,144 Taxation (240,404) (219,233) Profit for the period 802, ,911 Other Comprehensive income/(expenses) 7, ,469 Total Comprehensive income 810,543 1,357,380

9 Segmenting reporting 1. Segmental Income Statements Income statement for the period ended 31st Dec Revenue Investment Vehicle Adjustments Local sales Hiring Group of tyres Income Local Sales 333, ,109 Hiring Income - 3,230-3,230 Tax - Value Added Tax (43,449) - (421) - (43,870) Nation Building Tax (2,897) - (56) - (2,953) Net Turnover 286,763-2, ,516 Direct expenses of production (261,859) - (2,911) (264,770) Addministrative and - Other expenses (63,689) - (77) - (63,767) Other operating expenses Dividend received from JV - 159,320 - (159,320) - Rent Income - 4, ,478 Other Income 3, ,544 Interest Cost (2,446) - (218) - (2,664) Interest Income 10, ,036 Tax Share of Results of JV - 401, ,335 Net Profit (27,668) 565,133 (437) (159,320) 377,708

10 Income statement for the period ended 31st Dec Revenue Investment Vehicle Adjustments Local sales Hiring Group of tyres Income Local Sales 490, ,709 Hiring Income - 3,089-3,089 Tax - Value Added Tax (64,005) - (403) - (64,408) Nation Building Tax (4,267) - (54) - (4,321) Net Turnover 422,436-2, ,069 Direct expenses of production (384,417) - - (384,417) Addministrative and - Other expenses (57,832) - (2,761.20) - (60,593) Rent Income - 4,449 4,449 Other Income Interest Cost (3,314) - (405) - (3,718) Interest Income 27, ,319 Tax Share of Results of JV 425, , Net Profit/(Loss) 5, ,405 (511) - 435,016

11 Segmenting reporting 1. Segmental financial position Statement of Financial Position as at 31st Dec Investment Vehicle Adjustments Local sales Hiring Group ASSETS of tyres Income Non-current assets Property, plant and equipment 43,931-2,845 (2,565) 44,211 Intangible assets Deferred income tax asset Investment Property - 376, ,000 Investments in subsidiaries (10) - Investment in JV - 4,056,613 - (139,607) 3,917,006 Current assets 43,937 4,432,623 3,109 (142,182) 4,337,487 Trade and other receivables 509, ,631 Cash and cash equivalents 162, , ,046-1, ,105 Total assets 714,983 4,432,623 4,168 (142,182) 5,009,592 EQUITY AND LIABILITIES Equity attributable to equity holders Stated capital 402, (10) 402,000 Other reserve - 486, ,636 Revaluation reserve Retained earnings 767,879 3,430,371 2,480 (142,006) 4,058,724 Total equity 1,170,850 3,917,006 2,490 (142,016) 4,948,330 Minority Interest Preferance Shares Non - current liabilities Borrowings Retirement benefit obligations 4, ,096 4, ,039 Current liabilities Trade and other payables 12, (166) 12,700 Borrowings Bank Overdraft 43, ,050 55, (166) 56,222 Total liabilities 59,749-1,678 (166) 61,261 Total equity and liabilities 1,230,600 3,917,006 4,168 (142,182) 5,009,592

12 Statement of Financial Position as at 31st Dec Investment Vehicle Adjustments Local sales Hiring Group ASSETS of tyres Income Non-current assets Property, plant and equipment 31,937-3,184 (2,565) 32,555 Capital working progress - Intangible assets Deferred income tax asset - - 1,414-1,414 Investment Property - 352, ,000 Investments in subsidiaries (10) - Investment in JV - 3,679,403 - (139,607) 3,539,796 31,976 4,031,413 4,617 (142,182) 3,925,823 Current assets Trade and other receivables 596, ,289 Income Tax Refund Cash and cash equivalents 148,214-3, , ,488-3, ,932 Total assets 776,463 4,031,413 8,061 (142,182) 4,673,755 EQUITY AND LIABILITIES Equity attributable to equity holders Stated capital 402, (10) 402,000 Revaluation reserve - 486, ,636 Other reserve Retained earnings 820,952 3,053,160 4,468 (142,004) 3,736,577 Total equity 1,223,923 3,539,796 4,478 (142,014) 4,626,183 Non - current liabilities Borrowings - - 1,887-1,887 Retirement benefit obligations 1, ,793 1,793-1,887-3,680 Current liabilities Trade and other payables 9, (168) 9,267 Provision for Taxation Borrowings - - 1,415-1,415 Bank Overdraft 32, ,904-42,363-1,696 (168) 43,891 Total liabilities 44,157-3,583 (168) 47,572 Total equity and liabilities 1,268,079 3,539,796 8,061 (142,182) 4,673,755