L E E H E D G E S P L C

Transcription

1 L E E H E D G E S P L C ( f o r m a l l y k n o w n a s S h a w W a l l a c e & H e d g e s P L C ) Company Reg. No. PQ 152 Q U A R T E R L Y F I N A N C I A L S T A T E M E N T S F O R 2 N D Q U A R T E R E N D E D S E P T E M B E R 3 0, Registered Office 353, Kollupitiya Road, P.O. Box 84, Colombo 3.

2 Company Reg. No. PQ , Kollupitiya Road, P.O. Box 84, Colombo 3. Dear Shareholder, We have pleasure in presenting hereunder relevant details of the unaudited results of the performance of your Company and the Group for the Quarter ended 30th September 2018, together with the corresponding figures for the previous year. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Consolidated Company Quarter ended Period ended Quarter ended Period ended Variance Variance Variance Variance Rs '000 Rs '000 % Rs '000 Rs '000 % Rs '000 Rs '000 % Rs '000 Rs '000 % Continuing Operations Revenue 16, ,660 28,842 2,336 1,135 1, ,832 2, Cost of Sales (3) - - (526) Gross Profit 16, ,660 28,316 2,336 1,112 1, ,832 2, Other Income 43,028 48,547 (11) 87, ,973 (16) 43,028 48,547 (11) 87, ,973 (16) Administrative Expenses (16,917) (13,619) 24 (32,315) (24,925) 30 (18,672) (12,838) 45 (35,579) (23,601) 51 Other Expenses (2,569) (3,586) - (5,568) (6,320) - (2,569) (3,586) - (5,568) (6,320) - Results from operating activities 40,261 32,292 78,210 76,064 23,209 33,073 49,462 77,388 Finance Cost (6,896) (627) (15,018) (4,114) (849) (627) 35.4 (1,859) (4,114) (54.8) Profit / (Loss) before Taxation 33,365 31,665 (5) 63,192 71,950 (12.2) 22,360 32, ,603 73, Income Tax Release / (Expense) (12,048) (13,336) (10) (24,578) (28,279) (13) (12,048) (13,336) (10) (24,578) (28,279) (13) Profit / (Loss) for the year 21,317 18,329 (16) 38,614 43, ,312 19, ,025 44, Other Comprehensive Income Actuarial Gain/(Loss) on Retirement Benefit Obligation Revaluation Gain/(Loss) on Property, Plant & Equipment Deferred Tax on other Comprehensive Income Total Comprehensive income for the year 21,317 18,329 38,614 43,671 10,312 19,110 23,025 44,995 Profit attributable to ; Equity holders of the company 21,317 18,329 38,614 43, Non controlling Interest Profit / (Loss) for the year 21,317 18,329 38,614 43,671 10,312 19,110 23,025 44,995 Total Comprehensive income attributable to ; Equity holders of the company 21,317 18,329 38,614 43, Non controlling Interest Total Comprehensive income for the year 21,317 18,329 38,614 43,671 10,312 19,110 23,025 44,995 Earnings / (loss) per Share (Rs.)

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Consolidated Company Audited Audited As at, Rs '000 Rs '000 Rs '000 Rs '000 Rs '000 Rs '000 ASSETS Non Current Assets Property, Plant & Equipment 146, , , , , ,264 Investment Property 3,152,492 2,394,115 3,136,805 1,259, ,721 1,259,255 Investments - Subsidiary ,775,420 1,251,100 1,500,100 3,299,166 2,604,549 3,287,069 3,173,135 2,146,255 2,909,619 Current Assets Trade and Other Receivables 20,737 13,316 23,089 20,592 3,687 19,765 Short Term Investments 714, ,944 1,509, , ,944 1,509,492 Amounts due from Subsidiary ,540 - Income over payment - - 4,073-4,073 Cash & Cash Equivalents 539, , , , ,274,699 1,510,264 1,536,893 1,273,301 1,750,116 1,533,516 Total Assets 4,573,865 4,114,813 4,823,962 4,446,436 3,896,371 4,443,135 EQUITY AND LIABILITIES Equity Stated Capital 51,205 51,205 51,205 51,205 51,205 51,205 Capital Reserves 576, , , , , ,829 Revenue Reserves 3,680,273 3,149,761 3,667,262 3,701,694 3,241,856 3,704,272 Total Equity attributable to Equity holder of the Parent 4,308,307 3,723,769 4,295,296 4,329,728 3,815,864 4,332,306 Non controlling Interest Total Equity 4,308,307 3,723,769 4,295,296 4,329,728 3,815,864 4,332,306 Non Current Liabilities Retiring Benefit Obligations 4,645 3,225 4,645 4,645 3,225 4,645 Security Deposit 21,166-9,466 1,400-1,400 Deferred Tax Liabilities 43,774 8,352 43,774 58,795 8,352 58,795 69,585 11,577 57,885 64,840 11,577 64,840 Current Liabilities Other Payables 162, , ,970 18,519 22,149 16,679 Income Tax Payable 6, , Amounts due to Subsidiary Bank Overdraft 27,009 64, ,811 27,009 46,673 28, , , ,781 51,868 68,930 45,989 Total Equity and Liabilities 4,573,865 4,114,813 4,823,962 4,446,436 3,896,371 4,443,135 Net Asset Value per Share (Rs.) CERTIFICATION: The Board of Directors is responsible for preparation and presentation of these Financial Statements. Signed on behalf of the board of Directors of Lee Hedges PLC. 13th November 2018 (Sgd)S. Balaratnam (Sgd)S.R. Vamadevan Director Director

4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Consolidated Stated Capital Genaral Retained Non-Controlling Total Total Equity Capital Reserves Reserves Earning Interest Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Balance as at 1st April , ,803 81,786 3,029,969 3,685,763 20,452 3,706,215 Total comprehensive income for the year Profit / (Loss) for the period ,671 43,671-43,671 Gain on revaluation of Land & Building Actuarial gain on retirement benefit obligation Deferred Tax on other Comprehensive Income Total comprehensive income for the year ,671 43,671-43,671 Dividend Distibution (25,607) (25,607) - (25,607) Amount transferred due to change in holding ,942 19,942 (20,452) (510) Balance as at 30th September , ,803 81,786 3,067,975 3,723,769-3,723,769 Balance as at 1st April , ,829 81,786 3,585,476 4,295,296-4,295,296 Total comprehensive income for the year Profit / (Loss) for the period ,614 38,614-38,614 Actuarial loss on retirement benefit obligation Gain on revaluation of Land & Building Deferred Tax on other Comprehensive Income Total comprehensive income for the year ,614 38,614-38,614 Dividend Distibution (25,603) (25,603) - (25,603) Amount transferred due to changes in holdings Balance as at 30th September , ,829 81,786 3,598,487 4,308,307-4,308,307 Company Stated Capital Genaral Retained Total Capital Reserves Reserves Earning Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Balance as at 1st April , ,803 81,786 3,140,682 3,796,476 Total comprehensive income for the year Profit / (Loss) for the period ,995 44,995 Gain on revaluation of Land & Building Actuarial gain on retirement benefit obligation Deferred Tax on other Comprehensive Income Total comprehensive income for the year ,995 44,995 Dividend Distibution (25,607) (25,607) Balance as at 30th September , ,803 81,786 3,160,070 3,815,864 Balance as at 1st April , ,829 81,786 3,622,486 4,332,306 Total comprehensive income for the year Profit / (Loss) for the period ,025 23,025 Actuarial gain on retirement benefit obligation - - Gain on revaluation of Land & Building Deferred Tax on other Comprehensive Income Total comprehensive income for the year ,025 23,025 Dividend Distibution (25,603) (25,603) Balance as at 30th September , ,829 81,786 3,619,908 4,329,728

5 CONSOLIDATED STATEMENT OF CASH FLOW For the 3 Months Months Consolidated Period Period Months Months Company Period Period Rs '000 Rs '000 Rs '000 Rs '000 Rs '000 Rs '000 Rs '000 Rs '000 Cash Flows from Operating Activities Profit / (Loss) before Taxation 33,365 31,665 63,192 71,950 22,360 32,446 47,603 73,274 Adjustments for : Finance Cost 6, ,018 4, ,859 4,114 Interest Income (43,028) (47,628) (87,777) (100,996) (43,028) (47,628) (87,777) (100,996) Depreciation on Property, Plant & Equipment 6,278 5,995 12,191 11,751 6,037 5,995 11,950 11,751 Provision for Retirement Benefit Obligation Gain on Disposal / Exchange of Property, plant & Equipment - (919) - (3,058) - (919) - (3,977) Gain on Revaluation of Investment Property Provision for/(reversal of) impairment on amounts due from subsidiaries Operating Profit / (Loss) before Working Capital Changes 3,511 (10,260) 2,624 (17,158) (13,782) (9,479) (26,230) (15,834) (Increase)/Decrease in Trade and Other Receivables 668 3,540 2,354 5,685 (6,544) (2,462) (827) (2,920) (Increase)/Decrease in Short Term Investments 858, , , , , , , ,167 (Increase)/Decrease in Related Company Balance (275,971) (249,356) (276,171) (249,539) Increase/(Decrease) in Payables (216) 66,997 8,354 50,951 2,580 2,385 1,840 6,369 Cash Generated from / (Used in) Operations 862, , , , , , , ,243 Interest Paid (6,896) (627) (15,018) (4,114) (849) (627) (1,859) (4,114) Interest Income 23,709 14,560 53,032 40,836 23,709 14,560 53,032 40,836 Retirement benefit obligations paid Income Tax Paid (14,147) (45,776) (14,165) (55,900) (14,147) (45,776) (14,165) (55,900) Net Cash Flows from Operating Activities 865, , , , , , , ,065 Cash Flows from Investing Activities Acquisition of Property, Plant & Equipment (8,579) (2,176) (8,604) (15,114) (124) (2,176) (148) (15,114) Acquisition of Investments Property (15,687) (165,456) (15,687) (314,830) Proceed From Sale of Property, Plant & Equipment - 1,550-5,925-1,550-5,925 Net Cash Flows from Investing Activities (24,266) (166,082) (24,291) (324,019) (124) (626) (148) (9,189) Cash Flows from Financing Activities Dividend paid (25,603) (25,607) (25,603) (25,607) (25,603) (25,607) (25,603) (25,607) Net Cash Flows from Financing Activities (25,603) (25,607) (25,603) (25,607) (25,603) (25,607) (25,603) (25,607) Net Increase / (Decrease) in Cash and Cash Equivalents 815, , , , , , , ,269 Cash and Cash Equivalents at beginning of the period (303,370) (37,951) (304,572) 358,080 (37,132) 133,133 (28,407) 362,003 Cash and Cash Equivalents at end of the period (Note A) 512, , , , , , , ,272 Note A. Analysis of Cash and Cash Equivalents Bank and Cash Balances 539, , , , , , , ,945 Bank Overdrafts (27,009) (64,083) (27,009) (64,083) (27,009) (46,673) (27,009) (46,673) 512, , , , , , , ,272

6 INFORMATION BY SEGMENT & NOTES TO THE FINANCIAL STATEMENTS 1 Corporate information Lee Hedges PLC (the Company) is a public limited liability Company listed on the Colombo Stock Exchange, incorporated and domiciled in Sri Lanka. The Company and its subsidiary have the registered office at No. 353, Kollupitiya Road, Colombo 03. The ordinary shares of the Company are being traded in the Colombo Stock Exchange. Lee Hedges Investments Ltd is fully owned subsidiary of Lee Hedges PLC. 2 Market Price of Share Information pertaining to the shares traded during the Quarter ended 30th September, 2018, extracted from the website of the Colombo Stock Exchange, is set out below: 30-Sep Sep-2017 Period Date High 3-Jul Sep-17 High Rs Date Low 28-Sep Aug-17 Low Rs Close Rs Trade Vol Share Vol. 188, ,091 Turn Over Rs. 13,574, ,741, Last traded Date 28-Sep Sep-17 Days Traded Shareholders' Information 30-Sep Sep-2017 Rs. Rs. Earnings per Ordinary Share (Rs.) Net Assets per Share (Rs.) Debt/Equity Ratio (%) - - Current Ratio (Times) Directors' Shareholding 30-Sep Sep-2017 Mr. S. Vamadhevan - 58,752 Mr. S. Balaratnam - - Mr. S.L.P Wijesinghe - - Mr. S. S Vamathevan - - Total Number of Shareholders Total Number of shares of the company 25,602,730 25,602,730 Number of Public Shareholders % of Public Shareholders 37.38% 41.88% The float adjusted market capitalisation as at 30th September Rs. 669,995,060/-

7 INFORMATION BY SEGMENT & NOTES TO THE FINANCIAL STATEMENTS 5 Basis of Preparation The interim financial statements have been prepared in accordance with Sri Lanka Accounting Standard-LKAS 34 Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31st March The financial statements provide information as required in terms of Rule 7.4 of the Colombo Stock Exchange. The financial statements are provisional and subject to audit. The interim financial statements have been prepared on a historical cost basis except for financial instruments & Land & building. The interim financial statements are presented in Sri Lankan rupees and all values are rounded to the nearest thousand except when otherwise indicated. 6 Basis of Consolidation The interim condensed consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 30th September Functional and Presentation Currency These condensed consolidated interim financial statements are presented in LKR, which is the company's functional currency. All financial information presented in LKR has been rounded to the nearest thousand. 8 Changes in accounting policies The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and the year ended 31st March Significant accounting policies 9.1 Investment in Subsidiary The Group has measured an investment in a subsidiary, at deemed cost (previous SLAS carrying amount) in its separate SLFRS financial statements. 9.2 Financial instruments The Sri Lanka Accounting Standard SLFRS 9 on Financial Instruments, which replaces the existing guidance on LKAS 39 on Financial Instruments: Recognition and Measurement has become effective for annual reporting periods beginning on or after January 01, SLFRS 9 replaces the Incurred Loss Model in LKAS 39 with forward looking Expected Loss Model ( ECL ) which requires considerable judgement over how changes in economic factors affect ECL, which in turn is to be determined on a probability weighted basis. SLFRS 9 also contains a new classification and measurement approach for financial assets that reflects the business model in which assets are managed based on their cash flow characteristics Based on the Statement of Alternative Treatment (SoAT) on the Figures in the Interim Financial Statements issued by The Institute of Chartered Accountants of Sri Lanka entities are granted with the option to prepare Interim Financial Statements continuing the application of LKAS 39 with disclosures on impact to the Income Statement and Statement of Profit or Loss and Other Comprehensive Income for the period if SLFRS 9 has been applied. Accordingly, as permitted by the above SoAT, the Company has prepared the Interim Financial Statements for the quarter ended September 30, 2018 based on LKAS Other financial liabilities Financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Other financial liabilities comprise bank borrowings, trade and other payables Loans and receivables Loans and receivables comprise financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise of cash and cash equivalents, inter company receivables and trade and other receivables. 10 Other information 10.1 Comparative Information Where necessary comparative figures have been reclassified to conform with the current year's presentation Events Occurring after the Reporting date There were no other material events that occurred after the Balance Sheet date that require adjustments to or disclosure in the Financial Statements. 11 The number of shares included in the stated capital as at 30th September 2018 is 25,602, Contingent Liabilities There has been no any significant change in the nature of the contingent liabilities and contingent assets as disclosed in the quarterly financial statements as at 30th September 2018.

8 Twenty Major Shareholders as at 30th September 2018 Name of Shareholder No. of share % 1 Lee Hedges & Company Limited 13,057, % 2 Pioneer Homes (Private) Limited 2,973, % 3 Freudenberg Shipping Agencies Ltd. 1,293, % 4 Dr. S.H.A. Gulamhussein 1,072, % 5 Elgrin Investments Limited 913, % 6 Mr. Reza Magdon Ismail 726, % 7 Bansei Securities Capital (Pvt) Ltd./Dawi Investments Trust (Pvt) Ltd. 458, % 8 Mrs. C.A.D.S. Woodward 355, % 9 Alliance Finance Company PLC 284, % 10 Mr. L.G. Byatt (Deceased) 227, % 11 HSBC International Nominees Ltd./SSBT Deustche Bank (Singapore) A/c , % 12 Bansei Securities Capital (Pvt) Ltd/R.C.J.Goonewardene 135, % 13 The Ceylon Investors (Pvt) Limited 125, % 14 Mr.C.Chanmugam 106, % 15 Dawi Investment Trust (Pvt) Ltd 92, % 16 Mr.P.S.R. Casie Chitty 85, % 17 Mr. H.A. Peiris 81, % 18 Mr. R.J. Grewar (Deceased) 79, % 19 Mrs. P Mansell 75, % 20 Mr. R.L. Vincent 75, % Directors as at 30th September Mr. S. Vamadhevan Mr. S. Balaratnam Mr. S.L.P Wijesinghe Mr. S. S Vamathevan