BAIRAHA FARMS PLC. FINANCIAL STATEMENTS

Transcription

1 BAIRAHA FARMS PLC. FINANCIAL STATEMENTS 31ST MARCH 2018

2 Bairaha Farms PLC Statement of Financial Position As at 31st March 2018 Company ASSETS Non-Current Assets as as at at as at as at Rs Rs Rs Rs Property, Plant & Equipment 2,086,069,512 2,047,086, ,370, ,916,119 Investment Property ,976,310 62,092,942 Intangible Assets 3,791,480 3,369,725 3,791,480 3,369,725 Investments in Subsidiaries ,532, ,532,820 Investments in Joint Ventures 913,312, ,662, ,922, ,922,000 Other Investments 631,250 1,303, ,250 1,303,851 Biological Assets- Bearer 332,377, ,176,008 68,273,069 79,006,365 3,336,181,961 3,227,598,458 1,917,497,674 1,928,143,821 Current Assets Inventories 165,697, ,110, ,883, ,843,851 Biological Assets- Consumable 155,242, ,193,041 83,639,431 57,064,769 Trade and Other Receivables 490,686, ,712, ,798, ,072,310 Income Tax Receivable 18,239,780-15,898,992 - Amounts Due from Related Parties 24,409,463 24,388,320 53,403,908 55,129,761 Cash and Bank Balances 438,110, ,070, ,984, ,962,666 1,292,385,786 1,122,475, ,608, ,073,358 Total Assets 4,628,567,747 4,350,073,577 2,733,106,590 2,613,217,179 EQUITY AND LIABILITIES Equity Stated Capital 256,305, ,305, ,305, ,305,197 Revaluation Surplus 420,920, ,106, ,039, ,561,735 Available-for-Sale Reserve (1,616,907) (945,507) (1,616,907) (945,507) Actuarial Gain on Defined Benefit Plans (9,576,916) (131,831) (9,576,916) (131,831) Retained Earnings 2,893,507,004 2,600,928,897 1,409,024,318 1,278,204,481 Total Equity 3,559,539,178 3,281,263,137 1,797,175,638 1,676,994,075 Non-Current Liabilities Financing & Lease (Ijara) Payable 392,831, ,227, ,345, ,260,540 Deferred Tax Liabilities 164,180, ,494,449 64,400,901 73,438,227 Retirement Benefit Liability 72,370,606 52,035,278 64,347,946 44,260, ,383, ,756, ,094, ,959,616 Current Liabilities Trade and Other Payables 274,636, ,946, ,236, ,655,569 Dividends Payable 12,147,550 9,228,001 12,147,550 9,228,001 Amounts Due to Related Parties ,033,272 22,627,637 Income Tax Payable - 34,683,317-22,097,143 Financing & Lease (Ijara) Payable 152,860, ,195, ,419, ,655, ,645, ,053, ,836, ,263,488 Total Equity and Liabilities 4,628,567,747 4,350,073,577 2,733,106,590 2,613,217,179 The above figures are provisional and subject to audit. I certify that the above Financial Statements have been prepared in compliance with the reqirements of the Companies Act No. 07 of Sgd: Mr. Shafraz Hussaindeen Accountant The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Sgd: Mr. Yakooth Naleem Managing Director Sgd: Mr. Riyal Yakoob Executive Director 30/05/2018

3 Statement of Profit or Loss and Other Comprehensive Income - for the Year for the quarter for the quarter Change % Rs Rs Rs Rs +/(-) Revenue 4,214,570,306 4,363,614,158 1,042,989,797 1,106,167,151 (3) Cost of Sales (3,221,323,558) (3,160,549,595) (810,700,580) (899,067,239) 2 Gross Profit 993,246,748 1,203,064, ,289, ,099,912 (17) Other Operating Income 25,412,657 21,568,376 8,676,142 13,259, Distribution Costs (225,979,807) (200,262,478) (68,485,637) (65,172,495) 13 Administrative Expenses (239,852,912) (219,172,382) (40,671,066) (66,420,823) 9 Other Operating Expenses (653,943) (676,679) 5,908,047 5,453,538 (3) Finance Cost (86,681,603) (67,233,718) (20,742,538) (21,142,684) 29 Profit before Tax 465,491, ,287, ,974,165 73,077,348 (37) Share of Profit from Joint Venture Companies 34,248, ,833,469 26,777,059 44,008,496 (73) Income Tax Expense (95,161,838) (161,246,183) (28,530,656) (30,871,369) (41) Profit for the Period 404,578, ,874, ,220,568 86,214,475 (42) Other Comprehensive Income to be Reclassified to Profit or Loss in Subsequent Periods: Fair Value Gain / (Losses) - Other Investments (671,400.00) (651,700) (671,400.00) (651,700) Other Comprehensive Income not to be Reclassified to Profit or Loss in Subsequent Periods: Actuarial Gain on Defined Benefit Plans (10,982,657) 1,726,466 (10,982,657) 1,726,466 Deferred Tax Impact on Defined Benefit Plans 1,537,572 (189,911) 1,537,572 (189,911) Revaluation of Land 34,876,669-34,876,669 - Deferred Tax Impact on Revaluation (51,747,486) - (51,747,486) - Share of Other Comprehensive Income of Equity Accounted Investees 21,346,000 21,346,000 Deferred Tax Share of Equity Accounted Investments (8,660,764) (8,296,540) (13,630,666) 1,536,555 (13,266,442) 1,536,555 Other Comprehensive Income (14,302,066) 884,855 (13,937,842) 884,855 Total Comprehensive Income 390,276, ,759, ,282,727 87,099,330 (44) Earnings per Share - Basic (42) The above figures are provisional and subject to audit. I certify that the above Financial Statements have been prepared in compliance with the reqirements of the Companies Act No. 07 of Sgd: Mr. Shafraz Hussaindeen Accountant The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Sgd: Mr. Yakooth Naleem Managing Director Sgd: Mr. Riyal Yakoob Executive Director 30/05/2018

4 Statement of Profit or Loss and Other Comprehensive Income - Company for the quarter for the quarter Change Rs Rs Rs Rs +/(-) % Revenue 2,995,778,458 3,025,521, ,353, ,755,845 (1) Cost of Sales (2,598,837,045) (2,499,271,286) (661,511,781) (654,048,037) 4 Gross Profit 396,941, ,250,707 66,841, ,707,808 (25) Other Operating Income 259,124, ,301, ,373, ,272,305 (46) Distribution Costs (147,695,367) (133,403,830) (45,470,434) (44,510,215) 11 Administrative Expenses (154,540,457) (106,574,476) (50,938,067) (31,020,797) 45 Other Operating Expenses (646,579) (676,679) (206,017) (676,679) (4) Finance Cost (83,280,739) (64,945,774) (19,730,391) (20,199,714) 28 Profit before Tax 269,903, ,951,652 69,870, ,572,708 (62) Income Tax Expense (27,083,396) (97,214,026) (3,056,426) (46,287,327) (72) Profit for the Period 242,819, ,737,626 66,814, ,285,381 (60) Other Comprehensive Income to be Reclassified to Profit or Loss in Subsequent Periods: Fair Value Gain / (Losses) - Other Investments (671,400.00) (651,700) (671,400.00) (651,700) Other Comprehensive Income not to be Reclassified to Profit or Loss in Subsequent Periods: Actuarial Gain on Defined Benefit Plans (10,982,657) 1,726,466 (10,982,657) 1,726,466 Deferred Tax Impact on Defined Benefit Plans 1,537,572 (189,911) 1,537,572 (189,911) Revaluation of Land 946, ,500 - Deferred Tax Impact on Revaluation (1,468,289) - (1,468,289) - (9,966,874) 1,536,555 (9,966,874) 1,536,555 Other Comprehensive Income (10,638,274) 884,855 (10,638,274) 884,855 Total Comprehensive Income 232,181, ,622,481 56,175, ,170,236 (62) Earnings per Share - Basic (60) The above figures are provisional and subject to audit. I certify that the above Financial Statements have been prepared in compliance with the reqirements of the Companies Act No. 07 of Sgd: Mr. Shafraz Hussaindeen - Accountant The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Sgd: Mr. Yakooth Naleem Managing Director Sgd: Mr. Riyal Yakoob Executive Director 30/05/2018

5 Statement of Changes in Equity Stated Capital Revaluation Surplus Available-for- Sale Reserve Actuarial Gain on Defined Benefit Plans Retained Earnings Total Rs Rs Rs Rs Rs Rs Balance as at 1st April ,305, ,164,506 (293,807) (1,668,386) 2,019,053,929 2,698,561,439 Profit 31st March ,874, ,874,968 Other Comprehensive Income (Net) - - (651,700.00) 1,536, ,855 Surplus on Revaluation of Property, Plant & Equipment - (58,125) (58,125) Dividends (120,000,000) (120,000,000) Balance as at 31st March ,305, ,106,381 (945,507) (131,831) 2,600,928,897 3,281,263,137 Company Balance as at 1st April ,305, ,619,860 (293,807) (1,668,386) 792,466,855 1,190,429,719 Profit 31st March ,737, ,737,626 Other Comprehensive Income (Net) - - (651,700) 1,536, ,855 Surplus on Revaluation of Property, Plant & Equipment - (58,125) (58,125) Dividends (120,000,000) (120,000,000) Balance as at 31st March ,305, ,561,735 (945,507) (131,831) 1,278,204,481 1,676,994,075 Balance as at 1st April ,305, ,106,381 (945,507) (131,831) 2,600,928,897 3,281,263,137 Profit 31st March ,578, ,578,107 Other Comprehensive Income (Net) - (4,185,581) (671,400) (9,445,085.00) - (14,302,066) Dividends (112,000,000) (112,000,000) Balance as at 31st March ,305, ,920,800 (1,616,907) (9,576,916) 2,893,507,005 3,559,539,178 Company Balance as at 1st April ,305, ,561,735 (945,507) (131,831) 1,278,204,481 1,676,994,075 Profit 31st March ,819, ,819,837 Other Comprehensive Income (Net) - (521,789.00) (671,400.00) (9,445,085.00) - (10,638,274.00) Dividends (112,000,000) (112,000,000) Balance as at 31st March ,305, ,039,946 (1,616,907) (9,576,916) 1,409,024,318 1,797,175,638

6 Cash Flow Statement Cash Flows From/(Used in) Operating Activities Company Rs Rs Rs Rs Net Profit before Income Tax Expense 465,491, ,287, ,903, ,951,652 Adjustments for Allowance for Weight Loss 5,754,421 3,676,501 5,754,421 3,676,501 Depreciation 182,026, ,658, ,189,103 87,819,341 Transferred to Cost of Sales and Fair Value Gain 527,316, ,189, ,432,469 69,164,291 Realised Revaluation Surplus on Disposal of Property,Plant & Equipment. - (58,125) - (58,125) Fair Value Gain on Quoted Investments 1,201 12,352 1,201 12,352 Deferred Tax Impact on Retirement Benefit Obligation- Gratuity 1,537,572 (189,911) 1,537,572 (189,911) Intangible Assets Amortization 900, , , ,618 Gain on Disposal of Shares (369,887,691) Income from Investments (151) (503) (207,279,244) (109,805,265) Profit on Disposal of Property, Plant & Equipment (515,442) 779,265 (515,442) 779,265 Finance Cost 86,681,603 67,233,718 83,280,740 64,945,774 Provision for Defined Benefit Plans 10,305,086 8,962,265 9,415,405 7,270,776 Allowance for Impairment (2,018,405) 7,746,821 (2,309,960) 6,769,581 Operating Profit before Working Capital Changes 1,277,480,148 1,336,055, ,310, ,205,159 (Increase)/ Decrease in Inventories (15,340,505) (36,055,500) (17,794,300) (23,007,981) (Increase)/ Decrease in Biological Assets (40,049,562) 7,229,523 (26,574,662) 12,313,821 (Increase)/ Decrease in Trade and Other Receivables (38,475,841) (120,219,973) (8,416,244) (45,401,657) Increase/ (Decrease) in Related Company Balances (Net) (21,143) 232,688,290 5,131, ,100,025 Increase/ (Decrease) in Trade and Other Payables 56,690,188 (64,808,870) 100,581,412 (82,799,948) Cash Generated from Operations 1,240,283,285 1,354,888, ,237, ,409,419 Finance Costs Paid (86,681,603) (67,233,718) (83,280,739) (64,945,774) Defined Benefit Plan Costs Paid (952,415) (1,950,437) (310,965) (1,710,751) Income Tax Paid (151,146,022) (105,534,654) (75,585,146) (40,022,319) Net Cash Flows From Operating Activities 1,001,503,245 1,180,169, ,060, ,730,575 Cash Flows from /(Used in) Investing Activities Acquisition of Property, Plant & Equipment (186,225,730) (429,215,286) (103,515,807) (202,120,958) Acquisition of Intangible Asset (1,322,322) - (1,322,322) - Acquisition of Investment Property - - (158,058) (671,395) Investment in Subsidiaries (274,841,770) Investment in Joint Venture Company - (232,793,490) - (232,793,490) Proceeds from Sale of Property, Plant & Equipment 608,695 4,045, ,695 4,045,978 Net Acquisition of Biological Assets (555,518,054) (404,001,133) (177,699,174) (95,370,823) Dividend Received 4,805,201 3,862, ,279, ,805,265 Net Cash Flows Used in Investing Activities (737,652,210) (1,058,101,016) (74,807,422) (691,947,193) Cash Flows from (Used in) Financing Activities Dividend Paid (109,080,451) (117,163,830) (109,080,451) (117,163,830) Proceeds From Financing and Lease (Ijara) 74,150, ,742,961 63,450, ,342,961 Repayment of Financing Payable (157,539,397) (160,315,423) (150,941,223) (156,915,423) Principal Payment under Lease (Ijara) (903,364) (5,830,120) - - Proceeds From Disposal of Shares ,887,691 Net Cash Flows From Financing Activities (193,372,447) (112,566,412) (196,570,909) 289,151,399 Net Increase/(Decrease) in Cash and Cash Equivalents 70,478,588 9,502,302 75,682,578 (77,065,219) Cash and Cash Equivalents at the Beginning of the Period 336,212, ,710,032 72,881, ,947,177 Cash and Cash Equivalents at the End of the Period 406,690, ,212, ,564,536 72,881,958 Breakup of Cash and Cash Equivalents at the end of the Period Cash and Bank Balance 438,110, ,070, ,984, ,962,666 Bank Overdraft (31,419,805) (40,857,826) (31,419,805) (40,080,708) 406,690, ,212, ,564,536 72,881,958

7 Notes to the Financial Statements 1 Accounting Policies The Consolidated Financial Statements were prepared using the same accounting policies and methods of computation that were applied to prepare the Consolidated Financial Statements for the year 31 March 2017 and are in compliance with Sri Lanka Accounting Standard (LKAS) 34 - Interim Financial Reporting. 2 Net Asset Value per Share (Rs.) As at As at Market Value per share during the Quarter ( Rs.) Quarter to Quarter to Highest Lowest Closing Ordinary Shares ( No's ) As at As at Fully paid ordinary shares 16,000,000 16,000,000 5 There is no events / circumstances that have arisen since the reporting date which would require adjustments to or disclosure in the financial statements. 6 Company has given an additional Corporate Guarantee worth of Rs. 255 Mn to Commercial Bank of Ceylon PLC - Al Adalah Islamic Banking Unit on behalf of Fortune Agro Industries (Pvt) Ltd. for its working capital requirement. Except for the the above there has not been a significant change in the nature of the Contingent Liabilities and Contingent Assets which were disclosed in the Annual Report for the year 31st March Rs. 112,000,000/- dividend has been declared and paid for the nine months 31st December 2017, which is given below A second interim dividend for 2016/2017 amounting to Rs. 64,000,000/- was paid on 23rd May An interim dividend for 2017/2018 amounting to Rs. 48,000,000/- was paid on 20th November The Lands belonging to the group were revalued as at and were taken into the books for the purpose of providing deferred tax on the difference between carrying value and acquisition cost.

8 Additional Notes to the Financial Statements 1 Twenty Major Shareholders as at 31st March 2018 Name No. of Shares % 1 Mr. M.N.M. Yakooth 1,701, % 2 Mr. M.N.M. Mubarak 1,660, % 3 Mr. M.N.M. Kamil 1,603, % 4 Mr. M.N.M. Ilyas 1,532, % 5 Employees Trust Fund Board 1,199, % 6 Mr. M.Y.M. Riyal 824, % 7 Mrs. F.S. Imran 612, % 8 Seylan Bank PLC/ S.R Fernando 358, % 9 Mrs. A.W.M.S Rafeeka 300, % 10 Peoples Leasing & Finance PLC/ Hi Line Trading (Pvt) Ltd 271, % 11 Sand Wave Limited 259, % 12 Shehans Limited 213, % 13 Elgin Investments Ltd 163, % 14 Mr. A.C.M Riyaz 161, % 15 Bank of Ceylon No 1 Account 119, % 16 Mr.R.Pestonjee 119, % 17 Citizens Development Business Finance Plc 115, % 18 Seylan Bank PLC/ Mohamed Mushtaq Fuad 98, % 19 Venture Partners (Pvt) Ltd 90, % 20 Mr M.M.Salahudeen 86, % 11,493, % Others 4,506, % 16,000, % 2 Directors' and Chief Executive Officer's holding in shares as at 31st March 2018 Directors Name No. of Shares % 1 Desamanya Prof. M.T.A. Furkhan Chairman 81, % 2 Mr. M.N.M. Yakooth Managing Director / CEO 1,701, % 3 Mr. M.Y.M. Riyal Executive Director 824, % 4 Mr. M.N.M. Kamil 1,603, % 5 Mr. M.N.M. Mubarak 1,660, % 6 Mr. C.L. De Silva 60, % 7 Mr. H. Abeygunawardena Mr. M.I Wahid - - 5,932, % Others 10,067, % 16,000, % 3 Public Holding The percentage of shares held by the public as at 31st March 2018 is 62.92% comprising of 3,424 shareholders.

9 CORPORATE INFORMATION Directors: Auditors: Desamanya Prof. M.T.A. Furkhan - Chairman Messrs. Ernst & Young Mr. M.N.M. Yakooth - Managing Director Chartered Accountants Mr. M.Y.M. Riyal - Executive Director 201, De Saram Place, Mr. M.N.M. Kamil Colombo 10. Mr. M.N.M. Mubarak Mr. C.L. De Silva Secretaries & Registrars: Mr. H. Abeygunawardena P & W Corporate Secretarial (Pvt) Limited Mr. M.I Wahid 3/17, Kynsey Road, Colombo 08. Registered Office: 2nd Floor, Main Bankers: 407, Galle Road, Amana Bank Ltd, Colombo 03. No. 480, Galle Road, Colombo 03. Telephone : ( Hunting ) Facsimile : Bank of Ceylon, corporateoffice@bairaha.com Corporate Branch, Web : 4, Bank of Ceylon Mawatha Colombo 01.