SIERRA CABLES PLC PQ 166 INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2018 (UNAUDITED)

Transcription

1 PQ 166 INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2018 (UNAUDITED)

2 INCOME STATEMENT Group Company FOR THE YEAR ENDED 31ST MARCH (Un-Audited) (Audited) (Un-Audited) (Audited) Revenue 4,231,492,100 4,044,449,473 3,839,979,821 3,724,981,774 Cost of Sales (3,588,068,112) (3,165,556,059) (3,233,036,125) (2,880,335,542) Gross Profit 643,423, ,893, ,943, ,646,232 Other Income 83,943,843 26,903,100 10,725,060 26,902,525 Selling and Distribution Expenses (259,913,447) (238,232,735) (241,616,693) (213,485,628) Administrative Expenses (184,804,408) (156,899,782) (152,536,729) (155,481,754) Other Operating Expenses (34,675,077) (11,801,897) (31,833,474) (57,500,000) Profit/(Loss) from Operations 247,974, ,862, ,681, ,081,375 Net Finance Costs (189,823,840) (152,067,336) (154,198,234) (123,600,270) Share of Profit of Equity-Accounted Investees, (Net of Tax) 4,863, , Profit Before Taxation 63,014, ,668,988 37,483, ,481,105 Income Tax Expense (21,312,244) (80,243,893) (21,312,244) (81,809,721) Profit from Continuing Operation 41,701, ,425,095 16,171, ,671,384 Discontinued Operation Loss from Discontinued Operations - (1,965,557) - - Profit for the Year 41,701, ,459,538 16,171, ,671,384 Profit/(Loss) Attributable to : Owners of the Company 48,942, ,293,076 16,171, ,671,384 Non - Controlling Interests (7,240,373) (5,833,538) - - Profit for the Year 41,701, ,459,538 16,171, ,671,384 Basic Earnings Per Share Figures in brackets indicate deductions.

3 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Group Company FOR THE YEAR ENDED 31ST MARCH (Un-Audited) (Audited) (Un-Audited) (Audited) Profit for the Year 41,701, ,459,538 16,171, ,671,384 Other Comprehensive Income/(Expense) Net Change in Fair Value of Available-for-Sale Investments 1,369, ,023 1,369, ,023 Revaluation Surplus on Property Plant and Equipment 478,072, ,432,160 - Actuarial Gain on Defined Benefit Obligation, (Net of Tax) 1,520,687 1,520,687 Deferred Tax Impact on Revaluation surplus on Property Plant and Equipment - - Foreign Currency Translation Gain 339, , Other Comprehensive Income for the Year, Net of Tax 479,782,464 2,000, ,802,109 1,690,710 Total Comprehensive Income for the Year 521,484, ,459, ,973, ,362,094 Total Comprehensive Income Attributable to : Owners of the Company 523,749, ,277, ,973, ,362,094 Non - Controlling Interests (2,265,088) (5,818,060) - Total Comprehensive Income for the Year 521,484, ,459, ,973, ,362,094 Figures in brackets indicate deductions.

4 INCOME STATEMENT GROUP COMPANY FOR THE QUARTER ENDED 31ST MARCH, (Un-Audited) (Un-Audited) (Un-Audited) (Un-Audited) Revenue 1,350,551,408 1,034,682,807 1,163,061, ,698,624 Cost Of Sales (1,102,228,429) (869,458,922) (941,216,594) (822,683,120) Gross Profit 248,322, ,223, ,845, ,015,504 Other Income 76,758,412 3,512,980 3,539,629 3,512,980 Selling and Distribution Expenses (75,965,931) (64,294,040) (72,010,432) (56,460,021) Administrative Expenses (82,588,497) (30,849,082) (71,248,727) (28,132,241) Other Operating Expenses (24,892,327) 4,572,343 (19,433,474) (11,000,000) Profit From Operations 141,634,636 78,166,086 62,692,137 67,936,221 Net Finance Costs (51,035,785) (45,500,498) (43,696,550) (36,450,091) Profit Before Associate Company's Share of Profit 90,598,851 32,665,587 18,995,587 31,486,131 (Net of Income Tax) Share of Profit / (Loss) of Associate Company 1,373, , Profit Before Taxation 91,972,730 33,539,811 18,995,587 31,486,131 Income Tax Expense (19,312,244) (19,862,233) (19,312,244) (19,862,233) Profit/(Loss) from Continuing Operations 72,660,486 13,677,578 (316,657) 11,623,898 Discontinued Operation Loss from Discontinued Operations 1,283,089 (2,609,423) - - Profit/Loss for the Quarter 73,943,575 11,068,155 (316,657) 11,623,898 Profit/(Loss) Attributable to : Owners of the Company 74,397,564 13,166,290 (316,657) 11,623,898 Non - Controlling Interests (453,988) (2,098,135) ,943,575 11,068,155 (316,657) 11,623,898 Basic Earnings Per Share (0.00) 0.02 Figures in brackets indicate deductions

5 STATEMENTS OF PROFI T OR LOSS AND OTHER COMPREHENSIVE INCOME Group Company FOR THE QUARTER ENDED 31ST MARCH, (Un-Audited) (Un-Audited) (Un-Audited) (Un-Audited) Profit for the Period 73,943,575 11,068,155 (316,657) 11,623,898 Other Comprehensive Income Net Change in Fair Value of Available-for-Sale Investments 1,741, ,909 1,741, ,909 Revaluation Surplus on Property Plant and Equipment 478,072, ,432,160 Foreign Currency Translation Gain (115,539) Actuarial Loss on Defined Benefit Obligation, Net of Tax - - 1,545,718 Other Comprehensive Income for theyear, Net of Tax 479,698, , ,173,420 2,245,627 Total Comprehensive Income for the Year, 553,642,226 11,768, ,856,762 13,869,525 Total Comprehensive Income/(Expense) Attributable to : Owners of the Company 549,143,685 11,806, ,856,762 13,869,525 Non - Controlling Interests 4,498,541 (38,454) - - Total Comprehensive Income for the Year. 553,642,226 11,768, ,856,762 13,869,525 Figures in brackets indicate deductions.

6 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Group Company FOR THE PERIOD ENDED 31ST MARCH (Un-Audited) (Audited) (Un-Audited) (Audited) ASSETS Non Current Assets Property Plant & Equipment 1,681,793,161 1,114,052,321 1,253,382, ,344,603 Intangible Assets 8,900,755 6,859,050 8,900,755 6,859,050 Investments in Subsidiaries ,460, ,522,720 Investments in Equity Accounted Investees 8,484,326 3,621,186 3,300,000 3,300,000 Available for Sale Investments 30,512,264 29,142,315 30,512,264 29,142,315 Long Term Loan Receivable ,616,300 - Total Non Current Assets 1,729,690,506 1,153,674,872 1,708,172,352 1,018,168,688 Current Assets Inventories 1,027,891,550 1,233,919, ,157,623 1,160,345,333 Trade and Other Receivables 1,962,848,360 1,673,034,765 1,655,779,904 1,362,539,188 Income Tax Recoverable 10,800,892 1,883 6,777,667 - Amounts due from Related Companies 143,665, ,013, ,573, ,554,835 Cash in Hand and at Bank 313,886,746 78,771, ,519,487 73,481,406 Total Current Assets 3,459,093,355 3,095,740,766 3,157,808,262 2,994,920,762 Assets Classified as Held for Sale 148,652, ,624,096-18,000,000 Total Assets 5,337,436,187 4,416,039,734 4,865,980,614 4,031,089,450 EQUITY AND LIABILITIES Equity Stated Capital 894,565, ,565, ,565, ,565,898 Retained Earnings 463,806, ,874, ,011, ,840,114 Fair Value Reserve 19,262,804 17,892,855 19,262,803 17,892,855 Foreign Currency Translation Reserve 616, , Revaluation Reserve 822,927, ,909, ,371, ,938,932 Total Equity Attributable to Equity Holders of the Company 2,201,179,071 1,681,537,120 2,178,211,290 1,711,237,799 Non-Controlling Interest - (1,842,470) - - Total Equity 2,201,179,071 1,679,694,650 2,178,211,290 1,711,237,799 Non Current Liabilities Retirement Benefit Obligations 37,708,274 27,835,163 37,402,105 27,528,994 Deferred Tax Liabilities 173,149, ,166, ,620, ,620,754 Long Term Loans 101,067,556 71,484,209 22,371,999 56,613,998 Total Non Current Liabilities 311,925, ,486, ,394, ,763,746 Current Liabilities Trade and Other Payables 1,059,192, ,584, ,837, ,280,484 Current Portion of Long Term Loans 226,012, ,906, ,242,000 48,646,677 Amounts due to Related Companies - 5,583 43,913 91,400 Import Demand Loans 1,300,881,985 1,206,197,811 1,229,918,031 1,065,874,913 Income Tax Payable - 73,512,534-73,512,534 Bank Overdraft 238,182,443 98,056, ,333,082 37,681,897 Total Current Liabilities 2,824,268,632 2,457,262,870 2,479,374,465 2,087,087,905 Liabilities Directly Associated with Assets Classified as Held for Sale 63,000 6,596, Total Liabilities 3,136,257,116 2,736,345,084 2,687,769,323 2,319,851,651 Total Equity and Liabilities 5,337,436,187 4,416,039,734 4,865,980,614 4,031,089,450 Net Asset Value per Share It is certified that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No 07 of Sgd... Mervyn De Silva Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of the Financial Statements. Approved and signed for and on behalf of the Board of Directors. 22nd May 2018 Sgd..... Sgd... Priyantha Perera Shamendra Panditha Chairman Managing Director

7 Colombo

8 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH Group Attributable to Owners of the Company Non Controlling Total Stated Revaluation Foreign Currency Fair Value Retained Total Interest Equity Translation Capital Reserve Reserve Reserve Earnings Balance as at 1 st April ,565, ,909,786-17,722, ,438,841 1,542,637,357 3,975,590 1,546,612,947 - Profit / (Loss) for theyear ,293, ,293,076 (5,833,538) 265,459,538 - Other Comprehensive Income/(Expense) - Net Change in Fair Value of Available-for-Sale Financial Assets , , ,023 Foreign Currency translation Gain , ,085 15, ,563 Actuarial Loss on Retirement Benefit Obligation, Net of Tax ,520,687 1,520,687-1,520,687 Revaluation Surplus on Property Plant and Equipment Total Comprehensive Income for the Year , , ,813, ,277,871 (5,818,060) 267,459,811 Transactions with Owners, Recognised Directly in Equity Dividend Paid - Ordinary Shares (134,378,108) (134,378,108) - (134,378,108) Total Transactions with Owners of the Company (134,378,108) (134,378,108) - (134,378,108) Balance as at 31st March ,565, ,909, ,085 17,892, ,874,496 1,681,537,120 (1,842,470) 1,679,694,650 Balance as at 1 st April ,565, ,909, ,085 17,892, ,874,496 1,681,537,120 (1,842,470) 1,679,694,650 Profit / (Loss) for the Year ,942,330 48,942,330 (7,240,373) 41,701,957 Other Comprehensive Income/(Expense) Net Change in Fair Value of Available-for-Sale Financial Assets ,369,949-1,369,949-1,369,949 Revaluation surplus on Property plant & Equipments - 473,017, ,017,833 5,055, ,072,929 Foreign Currency Translation Gain , ,607 16, ,586 Total Comprehensive Income for the Year - 473,017, ,607 1,369,949 48,942, ,652,719 (2,168,298) 521,484,422 Absorption of Minority Negative Holding (4,010,768) (4,010,768) 4,010,768 - Balance as at 31st March ,565, ,927, ,692 19,262, ,806,058 2,201,179,071-2,201,179,072 Figures in brackets indicate deductions.

9 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH Stated Revaluation Fair Value Retained Total Company Capital Reserve Reserve Earnings Rs. Balance as at 1 st April ,565, ,938,932 17,722, ,026,151 1,604,253,813 Profit for the Year ,671, ,671,384 Other Comprehensive Income/(Expense) Net Change in Fair Value of Available-for-Sale Financial Assets , ,023 Actuarial Loss on Retirement Benefit Obligation, Net of Tax 1,520,687 1,520,687 Total Comprehensive Income for the Year , ,192, ,362,094 Transactions with Owners, Recognised Directly in Equity Dividend Paid - Ordinary Shares (134,378,108) (134,378,108) Total Transactions with Owners of the Company (134,378,108) (134,378,108) Balance as at 31st March ,565, ,938,932 17,892, ,840,114 1,711,237,799 Balance as at 1 st April ,565, ,938,932 17,892, ,840,114 1,711,237,799 Profit for the Year ,171,383 16,171,383 Other Comprehensive Income/(Expense) Revaluation surplus on Property, Plant & Equipment 449,432, ,432,160 Net Change in Fair Value of Available-for-Sale Financial Assets - - 1,369,949-1,369,949 Total Comprehensive Income for the Year - 449,432,160 1,369,949 16,171, ,973,491 Balance as at 31st March ,565, ,371,092 19,262, ,011,497 2,178,211,290

10 CASH FLOW STATEMENT GROUP COMPANY FOR THE YEAR ENDED 31ST MARCH Cash Flow from Operating Activities Profit/(Loss) Before tax from continuing operations 58,151, ,794,764 37,483, ,481,105 Profit/(Loss) Before tax from discontinued operations - (1,965,557) - - Adjustments for: Depreciation 85,332,063 85,216,844 70,412,674 68,632,183 Amortization of Intangible Asset 1,768,710 2,148,915 1,768,710 2,148,915 Impairment of Assets Held for Sale 18,000,000-18,000,000 - Provision for Impairment of Trade Receivables 55,962,442 34,228,581 41,000,000 29,438,139 Provision for Impairment of Subsidiaries ,600,010 55,000,000 Written off of Other Payables (533,000) Gain on Disposal of Available for Sale Investment - (554,968) - (554,968) Provision for Impairment of Investment in Associates ,500,000 Written off of Non Interest Baring Borrowing (6,000,000) Write off of Finished Goods - 44,296,346-44,296,346 Provision for Obsolete Inventories 9,000,000 2,119,931 9,000,000 - Written off of Related Party Payables (62,574,480) Provision for Employee Benefit Obligation 12,200,344 5,790,171 12,200,344 5,763,455 Interest Expenses 197,377, ,720, ,298, ,335,581 Net Gains/(Loss) on Translation of Foreign Currency 322,398 (1,938,439) - - Interest Income (332,625) (401,440) (331,393) (391,517) Dividend Income (308,189) (134,998) (308,189) (134,998) Operating Profit Before Working Capital Changes 368,366, ,321, ,124, ,514,241 (Increase)/Decrease in Inventories 197,027,792 (573,140,670) 245,187,710 (551,015,578) (Increase)/Decrease in Trade and Other Receivables (345,804,433) (664,165,852) (334,240,716) (528,304,713) (Increase)/Decrease in Dues from Related Parties (33,652,491) (4,125,577) (1,635,046) (95,327,475) Increase/(Decrease) in Trade and Other Payables 149,181, ,168,597 19,556, ,334,659 Increase/(Decrease) in Dues to Related Parties (5,583) 5,583 (119,663,787) 71,562 Cash Generated from Operations 335,113,106 (14,936,874) 173,329,179 34,272,696 Interest Paid (197,377,285) (150,620,896) (161,298,280) (125,335,581) Income Tax Paid (105,623,759) (26,050,385) (101,602,445) (26,048,502) Retirement Benefit Paid (2,327,232) (2,093,801) (2,327,232) (2,093,801) Net Cash Flows Generated from Operating Activities 29,784,830 (193,701,955) (91,898,778) (119,205,188) Cash Flows from Investing Activities Interest Received 332, , , ,517 Dividend Received 308, , , ,998 Acquisition of Property, Plant and Equipment (174,999,974) (97,197,965) (56,018,330) (18,740,838) Acquisition of Intangible Assets (3,810,415) (7,738,544) (3,810,417) (7,738,544) Investment in Subsidiary - - (25,921,600) (33,462,700) Proceeds from Disposal of Available of Sale Investments - 16,338,367-16,338,367 Net Cash From/(Used In) Investing Activities (178,169,575) (88,046,226) (85,110,765) (43,077,200) Cash Flows from Financing Activities Proceed from Interest-Bearing Borrowing 3,089,885,143 2,605,221,880 2,916,105,858 2,329,593,559 Repayment of Interest-Bearing Borrowing (2,846,568,849) (2,229,892,554) (2,642,709,419) (2,047,978,459) Dividend Paid - (120,995,875) - (120,995,875) Net Cash Flows From/(Used In) Financing Activities 243,316, ,333, ,396, ,619,225 Net Increase/ (Decrease) in Cash and Cash Equivalents 94,931,549 (27,414,730) 96,386,896 (1,663,163) Cash and Cash Equivelents Classified as Asset Held For Sale Cash and Cash Equivalents at the Beginning of the Year (19,227,572) 8,129,706 35,799,509 37,462,672 Cash and Cash Equivalents at the End of the Year 75,704,303 (19,284,699) 132,186,405 35,799,509 Analysis of Cash & Cash Equivalents Cash in Hand and at Bank 313,886,746 78,771, ,519,487 73,481,406 Bank Overdraft (238,182,443) (98,056,157) (176,333,082) (37,681,897) 75,704,303 (19,284,699) 132,186,405 35,799,509 Figures in brackets indicate deductions.

11 NOTES TO THE INTERIM FINANCIAL STATEMENTS - 31ST MARCH 2018 (1) (2) (3) (4) The Financial Position as at 31st March 2018 and the Comprehensive Income for the three months period ended are drawn from the unaudited Financial Statements of the Company and its Subsidiaries Sierra Industries (Private) Limited, Sierra Cable East Africa Limited, Sierra Power (Private) Limited and Associate Companies T & G Lanka (Private) Limited and Tea Leaf Resorts (Private) Limited, in accordance with the accounting policies. These Interim Financial Statements have been prepared in accordance with the same accounting policies and methods set out in the Annual Financial Statements for the year ended 31st March 2017 and are in compliance with the Sri Lanka Accounting Standard (LKAS - 34) - Interim Financial Reporting. There have been no other events subsequent to the interim period, which require disclosure in the Interim Financial Statements. There are no significant changes in the nature of the Contingent Liabilities which were disclosed in the Financial Statements for the year ended 31st March (5) Figures shown in brackets in the financial statements indicate deductions (6) (7) Where necessary, comparative figures have been re - classified to conform with the current period's presentation. The Board of the Sierra Cables PLC has decided to divest the Sierra Power (Pvt) Ltd. Hence Investment in Sierra Power (Pvt) Ltd transferred to Assets Held for Sale in the financial statements. Subsequently Disposal of investment in Sierra Power (Pvt) Ltd has taken place in 14th April (8) Market Price of Shares recorded For the Year Ended During the Quarter ended 31/03/ /03/ /03/ /03/2017 Highest Price Recorded Lowest Price Recorded Last Traded Price Recorded (09) Sierra Cables PLC Directors Shareholding As at 31st March 2018 Mr.W.A.P.Perera 3,920,510 Mr.E.A.D.T.B.Perera 10 Mr.D.S.Panditha 17,601,297 Mr.J.H.P.Ratnayake - Ms.G.S.M.Irugalbandara 1,709,800 Mr.B.W.N.Rupasinghe - Prof. A.K.W.Jayawardena - Ms.S.N. Lokuge 100,000 Mr.M.N.Gunasekara - Alternate Directors Mr.F.A.W.Irugalbandara(Alternate Director to Mr.W.A.P.Perera) 200,010 Mr.D.N.N. Lokuge 100,010 23,631,637 (10) Sierra Cables PLC- As at 31st March 2018 Public Holding of Issued Share Capital 37.42% Number of Public Shareholders 21,849 Issued Share Capital Representing - Ordinary Shares 537,512,430

12 NOTES TO THE INTERIM FINANCIAL STATEMENTS (10) LIST OF 20 MAJOR SHAREHOLDERS BASED ON THEIR SHAREHOLDINGS AS AT 31ST MARCH 2018 NO NAME SHAREHOLDING PERCENTAGE (%) 1 Sierra Holdings (Private) Limited 312,335, Seylan Bank PLC/ Carlines Holdings (Private) Limited 21,818, Mr. Daya Shamendra Panditha 17,601, Amana Bank PLC/Almas Organization (Private) Limited 15,779, Mr.Ponweera Arachchige Don Ruwan Udayanga 5,680, Mr. Bathiya Chandana Ranaweera 4,500, Mr. Wahalathanthirige Anil Priyantha Perera 3,920, Tranz Dominion,LLC 3,600, People's Leasing & Finance PLC/Hi Line Trading (Private) Limited 3,135, People's Leasing & Finance PLC/Mr.C.N.Jayasuriya 2,500, Mr. Abeyratne Banda Sarath Herath 2,236, Mr.Munidasa Ilamperuma 2,150, Mrs.Rangedara Kalanie Sandya 1,786, Mrs. Genevieve Sujivie Madhuni Irugalbandara 1,709, Mr. A.D. Edussuriya 1,500, Seylan Bank PLC/Mohamed Subair Fouzal Haqque 1,545, Trading Partners (Pvt) Ltd 1,432, Mr.Rajinda Goonewardene Seneviratne 1,423, Mr. Thambi Lebbe Mohamed Imitiaz 1,408, Merchant Bank of Sri Lanka & Finance PLC 1,390, TOTAL 407,452,

13 Name of the Company Sierra Cables PLC Company Re-registration No. PQ 166 (Under Companies Act No.07 of 2007) Registered Office 112, Havelock Road, Colombo 05 Company Secretaries P.R Secretarial Services (Private) Limited 59, Gregory's Road Colombe 07. Tel: , CORPORATE INFORMATION Auditors KPMG ( Chartered Accountants) 32 A, Sir Mohomed Macan Marker Mawatha, P.O. Box 186, Colombe 03. Tel: , Fax: , frt@kpmg.lk Legal Advisors Paul Rathnayake Associates 59, Gregory's Road Colombe 07. Tel: , info@prlaw.lk Bankers Commercial Bank of Ceylon PLC Sampath Bank PLC Bank of Ceylon People's Bank DFCC Bank Cargills Bank Limited Hatton National Bank PLC Standard Chartered Bank Subsidiary Companies Sierra Industries (Private) Limited Sierra Power (Private) Limited Sierra East Africa Ltd Associate Companies T & G Lanka (Private) Limited Tea Leaf Resorts(Private ) Limited Domicile and Legal Form Sierra Cables PLC is a Limited Liability Company incorporated and domiciled in Sri Lanka The Registered office of the Company is at 112, Haveloc Road Colombo 05 and principle place of business is located at 39/1A, Galwarusa Road, Korathota, Kaduwela. Tel: , Fax: , info@sierracables.com Issued Ordinary shares of the Company is stated as listed on the Colombo Sock Exchange since 22nd November Board of Directors as at 30th September 2017 Mr.W.A.P. Perera Mr.D.S.Panditha Mr.E.A.D.T.B.Perera Ms.G.S.M.Irugalbandara Mr.J.H.P.Ratnayaka Prof. A.K.W.Jayawardena Mr.B.W.N.Rupasinghe Ms.S.N. Lokuge Mr.M.N.Gunasekara Alternate Directors Mr.F.A.W.Irugalbandara Mr.D.N.N. Lokuge