BALANGODA PLANTATIONS PLC. OUR VISION To achieve excellence in the production & marketing of tea and rubber both locally and internationally.

Transcription

1 INTERIM FINANCIAL STATEMENT AS AT 31st DECEMBER 2016 OUR VISION To achieve excellence in the production & marketing of tea and rubber both locally and internationally. OUR MISSION To increase productivity To encourage team work and motivation amongst the employees and provide for career development To generate adequate return on capital To achieve excellence in every sphere of activity towards becoming a model in the private sector corporate entity

2 CORPORATE INFORMATION Company : Balangoda Plantations PLC Legal Form : Quoted Public Company Date of Incorporation : 11th June 1992 Company Registration No : P Q 165 Registered Office : 110, Norris Canal Road, Colombo 10 Board of Directors : Mr.D H S Jayawardena - Chairman/MD Mr.S K L Obeyesekere - Director/CEO Mr.C R Jansz - Non Executive Director Mr.A.L.Gooneratne - Non Executive Director Dr.A.Shakthevale - Independent Director Mr.D.S.K.Amarasekera Secretary : Mr. P A Jayatunga, 833, Sirimavo Bandaranaike Mawatha, Colombo 14. Telephone / Registrars : P W Corporate Secretarial (Pvt) Ltd., 3/17, Kynsey Road, Colombo 8. Telephone: Auditors : Messrs. Ernst & Young, Chartered Accountants, 201 De Saram Place, Colombo 10 - Independent Director Legal Advisors : Prasanna Goonewardene & Company, Attorneys-at-Law, Solicitors & Notaries Public, 26/01, Colonel T. G. Jayawardena Mawatha, Colombo 3. Bankers : Hatton National Bank PLC, Head Office Branch, 481, Darley Road, Colombo -10 Managing Agents : Stassen Exports (Pvt) Limited, 833, Sirimavo Bandaranaike Mawatha, Colombo 14.

3 STATEMENT OF PROFIT OR LOSS 03 Months 03 Months 12 Months 12 Months (Audited) ended ended ended ended Year ended 12/31/ /31/ /31/ /31/ /12/2015 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Revenue 418, ,217 2,266,708 2,413,055 2,413,055 Cost of Sales (468,714) (709,312) (2,419,455) (2,862,356) (2,862,356) Gross Profit (50,074) (177,095) (152,747) (449,301) (449,301) Gain/(Loss)on Fair value of Biological Asse 36,256 40,111 90,256 89,603 89,603 Other Operating Income 45,087 45, , , ,084 Administration Expenses (28,778) (30,446) (123,302) (125,154) (125,154) Management Fee (6,227) (6,227) (24,908) (24,908) (24,908) Profit from Operating Activities (3,736) (128,006) (81,772) (381,676) (381,676) Finance Cost (54,283) (21,335) (95,141) (48,778) (48,778) Profit before Taxation (58,019) (149,341) (176,913) (430,454) (430,454) Income Tax Expenses ,295 87,295 Net Profit/(Loss) for the Period. (58,019) (149,341) (176,913) (343,159) (343,159) Earning per Share (2.45) (6.32) (7.48) (14.52) (14.52) Net Assets per share Number of Shares 23,636,363 23,636,363 23,636,363 23,636,363 23,636,363 Market Value of Share Highest (for the period) Lowest (for the period) Closing (for the period) ) It is certified that the Financial Statements as at 31st December 2016 have been prepared in compliance with the Provisions of the Companies Act No. 7 of ) These interim financial statements are provisional and subject to audit. 3) These financial statements comply with the Sri Lanka Accounting Standards (SLFRS/LKAS) and the Statements of Recommended Practices (SoRP) and provide the information required by the Colombo Stock Exchange and LKAS 34. D H S Jayawardena Chairman/Managing Director S K L Obeyesekere Director/CEO 21st February 2017

4 STATEMENT OF COMPREHENSIVE INCOME 03 Months 03 Months 12 Months (Audited) ended ended ended Year ended 31/12/ /31/ /12/ /31/2015 Rs.'000 Rs. '000 Rs.'000 Rs. '000 Profit/ (Loss) for the year (58,019) (149,341) (176,913) (343,159) Other Comprehensive Income Net change in fair value of available -for-sale financial assets (183) - (124) (182) Actuarial gains / (Loss) on defined benefit Plans 148, ,708 10,012 Income tax effect (1,578) Total other comprehensive income for the year,net of tax 148, ,584 8,252 Total other comprehensive income for the year,net of tax 90,506 (149,341) (28,329) (334,907) STATEMENT OF CHANGES IN EQUITY Stated Timber Available for Retained Total Capital Reserves Sale Reserves Profit/(Loss) Equity Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance as at 31st December ,000 1,475, ,473 2,621,633 Net Profit/(Loss) for the period (343,159) (343,159) Transferredd to Timber Reserve - 89,603 - (89,603) - Other Comprehensive Income - (182) 8,434 8,252 Balance as at 31 December ,000 1,565, ,145 2,286,726 Net Profit/(Loss) for the period (176,913) (176,913) Transferredd to Timber Reserve - 90,256 - (90,256) - Other Comprehensive Income - - (124) - (124) Balance as at 31 December ,000 1,655, ,976 2,109,689

5 STATEMENT OF FINANCIAL POSITION (Audited) As at Year ended 12/31/ /31/2015 ASSETS Rs. '000 Rs. '000 Non Current Assets Leasehold Property Plant & Equipment 242, ,369 Property Plant & Equipment Freehold Property Plant & Equipment 551, ,276 Bearer Biological Assets 2,345,314 2,088,810 Consumable Biological Assets 1,856,464 1,755,819 Avalable for sale Financial Assets ,996,993 4,794,905 CURRENT ASSETS Inventories 379, ,304 Trade & Other Receivables 110, ,643 ACT Recoverable 29,469 29,469 VAT Receivable 13,624 11,333 Economic Service Charge Recoverable 8,638 4,782 Amounts due from Related Companies 3,578 9,321 Short Term Investments 3,559 62,912 Call Deposits 21,116 24, , ,093 TOTAL ASSETS 5,567,508 5,344,998 EQUITY AND LIABILITIES Capital and Reserves Stated Capital 350, ,000 Timber Reserves 1,655,356 1,565,100 Available for sale Reserves Retained Earnings 103, ,144 TOTAL EQUITY 2,109,689 2,286,725 Non Current Liabilities & Deferred Income Interest Bearing Loans & borrowings 954, ,382 Deferred Tax Liabilities 45,754 45,754 Deferred Grants & Subsidies 180, ,421 Retirement Benefit Obligations 677, ,903 Net Liabilities to the lessor payable after one year 93,485 95,344 1,951,691 1,804,804 Current Liabilities Interest Bearing Loans & Borrowings 129, ,127 Net Liabilities to the lessor payable within one year 1,859 1,789 Dividends Payable 6,372 6,536 Income Tax Liabilities 8,452 15,959 Trade & other Payable 738, ,584 Amount due to related companies 132, ,208 Bank Overdraft 489, ,266 TOTAL EQUITY AND LIABILITIES 1,506,128 1,253,469 5,567,508 5,344,998 -

6 STATEMENT OF CASHFLOWS 12 Months (Audited) ended Year ended 12/31/ /31/2015 CASH FLOW FROM OPERATING ACTIVITIES Rs. '000 Rs. '000 Profit Before Taxation (176,913) (430,454) ADJUSTMENT FOR Depreciation/ Amortization 98,521 99,489 Retirement Benefit Obligation - Provision (31,241) 117,566 Amortization of Grants (11,211) (11,275) Interest Income (467) (7,531) Povision for Obsolete Stock Provision for Doubtful Debts Interest Expense 95,141 48,778 Profit on Disposal of Property Plant & Equipment - (2,731) Profit on Sale of Timber Trees - (1,844) Gain/Losses on Fair Value of Biological Assets (90,256) (89,603) Operating Profit Before Working Capital Changes (116,426) (276,535) (Increases)/Decrease in Inventories (114,294) 67,602 (Increases)/Decrease in Trade & Other Receivables 25,583 (785) (Increases)/Decrease in amount due from Related Companies 5,743 (4,481) Increases/(Decrease) in Trade & Other Payables 271, ,950 Increases/(Decrease) in amounts due to Related Companies 21,196 6,737 Cash Generated from Operations 93,540 (101,512) Payment of Economic Service Charges (9,753) (6,906) Retirement Benefit Obligation - Payments (49,079) (33,977) Interest Paid (92,175) (39,824) Net cash from Operating Activities (57,467) (182,219) CASH FLOWS FROM INVESTMENT ACTIVITIES Interest Received ,146 Grants Received - - Purchases of Property Plant & Equipment (1,665) (143,894) Investment in Immature Plantations (208,813) (314,309) Proceeds from sale of Property Plant & Equipment - 6,735 Net Cash from/(used in) Investing Activities (210,030) (441,322) CASH FLOWS FROM FINANCING ACTIVITIES Receipts of Loan 395, ,136 Repayment of Loans (154,842) (37,610) Payment to Lessor on lease Rights (30,374) (14,742) Dividends Paid - - Net cash Used in Financing Activities 210, ,784 Net Increase /(Decrease) in Cash & Cash Equivalents (57,310) (331,757) Cash & Cash Equivalents at the beginning of the year (407,025) (75,268) Cash & Cash Equivalents at the end of the year (464,335) (407,025) (57,310) (331,757)

7 ADDITIONAL NOTES Notes to the Financial Statement 1. Other than contingent liabilities which may arise from fair value adjustments, there has not been a significant change in the nature of contingent assets and contingent liabilities which were disclosed in the Annual Report for the year ended 31 December Liability to the management fees and other similar expenditure have been provided in the Interim accounts. No circumstances have arisen since the Balance Sheet date, which would require adjustments to or disclosure in the financial statements. 4. Same accounting policies and methods of computation are followed in the interim financial statements for the 12 months period ended 31 December 2016, as compared with the annual financial statements for the year ended 31 December The Statement of Recommended Practice (SoRP) for Right-to-use of Land on Lease was approved by the Council of the Institute of Chartered Accountants of Sri Lanka on 19th December Subsequently, the amendments to the SoRP along with the modification to the title as Statement of Alternative Treatment (SoAT) were approved by the Council on 21st August The Company has not reassessed the Right-to-use of Land because this is not mandatory requirement. 6. In accordance with the Collective Agreement between the Employers' Federation of Ceylon and the Trade Unions, with effect from 15 october 2016, the daily basic wage of workers have been increased from Rs. 450/- to Rs.500/-, totalling to Rs.730/-per day, as compared to Rs. 620/- previously.

8 ADDITIONAL NOTES The Names and the Numbers of shares held be the 20 largest holders of voting and non-voting shares and the percentage of such shares held - 31st December, No NAME/ADDRESS NO. OF % OF ISSUED SHARES CAPITAL 1 Melstacorp Limited 10,217, Milford Exports(Ceylon) (Pvt) Limited 3,636, Employees Provident Fund 1,351, Macksons Holdings (Pvt) Limited 662, Merchant Bank of Sri Lanka Ltd A/C No.1 497, Mr.M.M.M.Milfer 376, Dr.T Senthilverl 352, Associated Electrical Corporation Ltd. 195, Mr.M.H.Nassim Hussain 180, Mr.K.N.Karunaratne 150, Cocoshell Activated Carbon Company Limited 145, First Capital Markets Limited / Ventura Crystal (Pvt) Limited 136, Mrs.M.W.Pathmalatha 113, Mr. R. Maheswaran 112, Mr.A.J.M. Jinadasa 111, Mr. A. K. Palliya Guruge Don 108, Sampath Bank PLC/Dr. T Senthilverl 80, Seylan Bank PLC/Mr.Duleep Nissanka Daluwatte 74, Mrs.W.W.Somawathie 68, Mr.A.K. Seneviratne 59, Number of Public Shareholders - 18,449 The Public holding percentage % A statement of each director's holding and Chief Executive Officer's holding in shares of the entity at the end of each financial year 31st December, 2016 Name Non CDS CDS Total Mr.D H S Jayawardena - Chairman/MD Mr.S K L Obeyesekere - Director/CEO Mr.C R Jansz - Non Executive Director Mr. A.L. Gooneratne - Non Executive Director Dr.A Shakthevale - Independent Director Mr.D S K Amarasekera - Independent Director Number of shares representing the Entity's stated Capital - 23,636,363

9 SEGMENT INFORMATION REVENUE Sale of Goods Segmental Information 31/12/ /12/ /12/ /12/2015 Segment Tea Tea Rubber Rubber 31/12/2016 Total 31/12/2015 Total Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 (a) Segment Revenue Revenue 2,054,260 2,235, , ,171 2,266,708 2,413,055 Cost of Sales (2,153,315) (2,605,400) (266,140) (256,956) (2,419,455) (2,862,356) Segment Results (99,055) (369,516) (53,692) (79,785) (152,747) (449,301) Unallocated Other Operating Income 128, ,084 Administrative Expenses (123,302) (125,154) Management Fees (24,908) (24,908) Finance Cost (95,141) (48,778) Gain on Change in Fair Value of Biological Asset 90,256 89,603 Profit/(Loss) before Income Tax Expense (176,913) (430,454) (b) Segment Assets Non Current Assets 1,097,375 1,098,255 2,077,453 1,789,006 3,174,828 2,887,261 Current Assets 353, ,564 55,351 64, , ,334 1,450,519 1,333,819 2,132,804 1,853,776 3,583,323 3,187,595 Unallocated Non Current Assets 1,822,165 1,907,644 Current Assets 162, ,759 Total Assets 5,567,508 5,344,998 Segment Liabilities Non Current Liabilities 723, , , , , ,790 Current Liabilities 359, ,648 60,191 65, , ,947 Total Liabilities 1,083,707 1,094, , ,415 1,258,731 1,287,737 Unallocated Non Current Liabilities 1,112, ,014 Current Liabilities 1,086, ,522 Total Liabilities 3,457,819 3,058,273 Equity 2,109,689 2,286,725