FINANCIAL STATEMENTS For the Period Ended 31 March 2018

Transcription

1 FINANCIAL STATEMENTS For the Period Ended 31 March 2018 LANKA VENTURES PLC Ocean Lines Building 46/12, Nawam Mawatha Colombo 02. Tel: Fax:

2 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Unaudited) Interim period of 03 Months Period ended 31 March Period ended 31 March Accumulated 12 Months Period ended 31 March Period ended 31 March Restated Restated Revenue Investment income (17) ,368 3,243 5,227 6,525 8,858 Interest income 15,067 4, ,309 29,080 20,856 6,806 8,700 Subsidiary company income 15,070 (698) , , Other income ,279 4,784 1,620 2, , ,141 13,799 18,158 Operating expenses Administrative expenses (8,125) (6,207) (6,137) (5,066) (31,388) (25,553) (21,842) (18,580) Sales and establishment expenses (1,853) (1,551) (1,713) (1,551) (7,133) (6,716) (6,943) (6,675) Other operating expenses (2,102) (3,475) (809) (1,144) (7,450) (9,136) (3,467) (3,391) Direct expenses - other subsidiaries (20,296) (10,531) - - (109,965) (88,767) - - Results from operating activities (2,097) (16,981) (7,040) (4,951) 203, ,969 (18,454) (10,488) Share of profit of equity accounted investees (net of income tax) 63,057 24,811 19,349 9, , , , ,623 Gain on disposal of a subsidiary Available for sale financial assets - reclassified from OCI , Gain/(loss) on derivative financial instrument ,761-6,761 - Gain/(loss) on available for sale financial assets (7,831) 1,070 (7,831) 1,070 Finance cost (36,711) (46,542) (1,462) (2,079) (196,704) (163,402) (6,036) (9,826) Profit/(loss) before income tax 24,249 (37,386) 10,847 2, , , , ,379 Income tax expense (33,889) 17,314 (888) 375 (59,200) (43,182) (566) 2,287 Profit/(loss) for the period (9,639) (20,070) 9,960 3, , , , ,666 Profit/(loss) attributable to: Equity holders of the company (5,777) (19,412) 9,960 3, , , , ,666 Non-controlling interest (3,862) (658) , , Profit/(loss) for the period (9,639) (20,070) 9,960 3, , , , ,666 Other comprehensive income, net of income tax Net change in fair value of available-for-sale financial assets (5,616) - (4,009) Reclassification of available for sale to profit /(loss) (1,533) - (108,263) - (78,818) Share of other comprehensive income - equity accounted investees - 8,629-5,960-8,629-5,960 Defined benefit plan actuarial (gain) / loss - 1,171-1,171-1,171-1,171 Foreign operations - foreign currency translation difference 8,848 (34,489) 5,043 (24,618) (27,961) 6,356 (21,383) 4,642 Other comprehensive income for the period, net of income tax 8,848 (24,689) 5,043 (19,021) (27,961) (97,723) (21,383) (71,055) Total comprehensive income for the period (791) (44,759) 15,003 (16,006) 392, , , ,611 Total comprehensive income attributable to: Equity holders of the company (735) (36,806) 15,003 (16,006) 239, , , ,611 Non-controlling interest (56) (7,953) , , Total comprehensive income for the period (791) (44,759) 15,003 (16,006) 392, , , ,611 Basic earnings per share (Rs.) (0.12) (0.39)

3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited) As at 31 As at 31 As at 31 As at 31 March 2018 March 2018 March 2017 March 2017 Audited Restated Assets Non current assets Property, plant and equipment 1,016,604 1,116 1,049, Investment in subsidiary - 1,229,472-1,207,300 Investment in associates 2,894,964 45,000 2,597,549 - Intangible assets 63,028-64,131 - Derivative financial instrument 6,761 6, Other long term investments 31,443 31,443 39,274 39,274 Total non current assets 4,012,800 1,313,792 3,750,213 1,246,846 Current assets Current portion of long term investment ,750 13,750 Loans and receivables 40,112 5,740 14,457 5,114 Amounts due from related parties 3,320 3,066 2,561 2,599 Other receivables 44, , ,256 6,114 Income tax receivables 10,967 1,444 5, Cash and cash equivalents 975,787 28, , ,450 Total current assets 1,074, , , ,891 Total assets 5,087,758 1,486,403 4,153,047 1,396,737 Equity Stated capital 631, , , ,638 Revaluation 5,960 5,960 5,960 5,960 Translation 37,862 41,904 59,245 63,287 Retained earnings 1,449, ,359 1,027, ,522 Total equity attributable to equity holders of the 2,125,288 1,401,862 1,724,453 1,318,408 Non controlling interest 1,662, ,181 - Total equity 3,787,813 1,401,862 2,546,634 1,318,408 Liabilities Non current liabilities Defined benefit obligation 5,161 5,161 4,342 4,342 Deferred tax liability 42,050-38,169 - Cumulative redeemable preference shares 415, ,000 - Interest bearing borrowings 404,991 42, ,731 23,334 Total non current liabilities 867,203 47, ,242 27,676 Current liabilities Cumulative redeemable preference shares 75, ,311 - Interest bearing borrowings 225,007 25, ,600 40,231 Other payables 119,895 10,382 16,203 10,422 Income tax payables 12, ,057 - Total current liabilities 432,742 36, ,171 50,653 Total liabilities 1,299,944 84,542 1,606,413 78,329 Total equity and liabilities 5,087,758 1,486,403 4,153,047 1,396,737 Net assets per share (Rs.) I certify that the financial statements comply with the requirements of the Companies Act No. 07 of Sgd. D L Wijesekara Finance Manager The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board. Sgd. Sgd. J D N Kekulawala T W De Silva Director Director 30 May 2018

4 STATEMENT OF CHANGES IN EQUITY (Unaudited) Stated capital Revaluation Available for sale Translation Retained earnings Non controlling interest Total Balance as at 01 April , ,252 54, , ,097 2,436,557 Profit/(loss) for the period , , ,978 Share of other comprehensive income - equity accounted investees - 5, ,434 8,629 Available-for-sale financial assets - net change in fair value - - (4,009) - - (1,607) (5,616) Reclassification of available for sale to profit/(loss) - - (101,243) - - (7,020) (108,263) Foreign operations - foreign currency translation difference ,500-1,856 6,356 Defined benefit plan actuarial gains /(losses) ,171-1,171 Total comprehensive income for the period - 5,960 (105,252) 4, , , ,255 Issue of shares during the period by the subsidiary ,117 81,117 Acquisition of NCI without change in control (86,895) (86,895) Share issue expenses (1,060) (417) (1,477) Dividend paid (100,000) (132,923) (232,923) (101,060) (139,118) (240,178) Balance as at 31 March ,638 5,960-59,245 1,027, ,181 2,546,634 Balance as at 01 April ,638 5,960-59,245 1,027, ,181 2,546,634 Profit/(loss) for the period , , ,952 Foreign operations - foreign currency translation difference (21,383) - (6,578) (27,961) Total comprehensive income for the period (21,383) 261, , ,991 Change in ownership without change in control in subsidiary , ,935 1,153,131 Dividend paid (125,000) (179,943) (304,943) , , ,188 Balance as at 31 March ,638 5,960-37,862 1,449,829 1,662,525 3,787,813 Stated Capital Revaluation Available for sale Translation Retained earnings Total Balance as at 01 April reported 631, , ,847 Effect on change in accounting policy ,828 58, , ,009 Balance as at 01 April as restated 631,638-82,828 58, ,745 1,155,857 Profit/(loss) for the period , ,666 Available-for-sale financial assets - net change in fair value - - (4,009) - - (4,009) Share of other comprehensive income - equity accounted investees - 5, ,960 Reclassification of available for sale to profit/(loss) - - (78,818) - - (78,818) Foreign operations - foreign currency translation difference ,642-4,642 Defined benefit plan actuarial gains /(losses) ,171 1,171 Total comprehensive income for the period - 5,960 (82,827) 4, , ,611 Dividend paid (100,000) (100,000) Share issue expenses of subsidiary (1,060) (1,060) (101,060) (101,060) Balance as at 31 March ,638 5,960-63, ,522 1,318,408 Balance as at 01 April ,638 5,960-63, ,522 1,318,408 Profit/(loss) for the period , ,486 Foreign operations - foreign currency translation difference (21,383) - (21,383) Total comprehensive income for the period (21,383) 263, ,103 Dividend paid (125,000) (125,000) Share issue expenses of subsidiary (33,649) (33,649) (158,649) (158,649) Balance as at 31 March ,638 5,960-41, ,359 1,401,862

5 CONSOLIDATED STATEMENT OF CASHFLOWS (Unaudited) For the Period ended 31 March Restated Cash flows from operating activities Profit/(loss) before income tax 480, , , ,379 Adjustments for: Amortization of staff cost Depreciation 41,106 30, Amortization of land rights 2, Share of earnings (474,832) (423,360) (289,611) (351,623) Interest income on staff loan (419) (601) (419) (601) Provision for defined benefit obligation Interest income on investments (29,490) (23,865) (7,218) (11,737) Dividend income (2,292) (1,910) (2,292) (1,910) Gain / (loss) on derivative financial instrument (6,761) - (6,761) - Gain / (loss) on available for sale financial assets 7,831 (1,070) 7,831 (1,070) Available for sale financial assets - reclassified from OCI - (108,263) - - Dividend on preference shares 86,469 75, Interest expense 108,322 86,908 5,388 9, , ,753 (27,930) (23,607) Changes in Loans and receivables 10,910 3,138 (737) 1,550 Related party receivables (759) (4,711) (467) (1,002) Other receivables 117,482 (84,192) 4,819 (4,458) Other payables 103,691 (3,213) (40) (2,720) Cash generated from operating activities 444,492 36,775 (24,356) (30,239) Gratuity paid - (359) - (359) Taxes paid (9,981) (15,713) (579) (352) Interest paid (110,336) (85,430) (5,519) (9,774) Net cash from operating activities 324,175 (64,727) (30,454) (40,724) Cash flows from investing activities Dividend received 2,292 1,910 81, ,042 Dividend received from equity accounted investees 255, , Interest received 29,490 23,865 7,218 11,737 Additions to intangible assets (1,050) Acquisition of property, plant and equipment (8,034) (264,217) (597) (231) Acquisition of NCI without change in control - (86,895) - - Investment in equity accounted investees (185,000) (87,167) (45,000) - Investment in subsidiary (255,085) Disposal of property, plant and equipment - 10, Disposal of investment 13,750 30,000 13,750 30,000 Net cash from investing activities 106,617 (161,356) 57,317 (12,537) Cash flows from financing activities Dividend paid to the minority shareholders (179,943) (132,923) - - Dividend paid (125,000) (100,000) (125,000) (100,000) Preference dividend paid (104,779) (82,346) - - Net change in cumulative redeemable preference shares (255,000) 85, Net change in interest bearing borrowings (148,179) 138,535 5,000 (40,000) Proceeds from issue of ordinary shares by subsidiary subscribed by minority shareholders 1,200,000 81, Share issue expenses (46,869) (1,477) - - Net cash from financing activities 340,230 (12,094) (120,000) (140,000) Net increase/(decrease) in cash and cash equivalents 771,022 (238,176) (93,137) (193,260) Cash and cash equivalent as at 01 April 204, , , ,710 Cash and cash equivalent as at 31 March 975, ,766 28, ,450

6 Explanatory Notes : 1 The interim financial statements are subject to audit The interim financial statements have been prepared in accordance with LKAS 34 - Interim Financial Reporting. 5 6 The stated capital comprises 50,000,000 Ordinary Shares. 7 8 The company invested Rs. 45 Mn in an associate company, ENV Engineering Enterprises Lanka (Private) Limited during the period. 9 The same accounting policies and methods of computation have been followed except as stated in item 3 below in interim financial statements as compared with the most recent audited financial statements. Change in accounting policy: Following a review of group financial statements for the 9-months period ended 31 December 2017 by external auditors, company adopted equity method of accounting for its subsidiary company as specified in LKAS 27 Separate Financial Statements. This change in accounting policy has been applied retrospectively as per LKAS 8 Accounting policies, Changes in Accounting Estimates & Errors. Where items have been regrouped, comparative information in relation to previous year have been presented in line with information pertaining to the current period. A final dividend of Rs per ordinary share for the financial year ended 31 March 2017 was declared on 01 August 2017 and was paid on 04 October Events occurring after the reporting date: No circumstances have arisen since the reporting date which would require adjustment to or disclosure in the interim financial statements other than those disclosed in these notes. 10 There were no liabilities for management fees or any other similar expenditure not provided for in interim financial statements. 11 There were no contingent liabilities during the period under review that require disclosure in interim financial statements. 12 The market price per share: for the quarter ended 31 March Highest price Rs Lowest price Rs Market price as at 31 March Rs Twenty major shareholders of the as at 31 March 2018 : Name of shareholder/company name No. of Shares % of issued Capital 14 1 Acuity Partners (Private) Limited 39,790, Mr. A. M. Weerasinghe 521, Hallsville Trading INC. 517, Peoples Leasing & Finance PLC / Mr. L. P. Hapangama 484, E. W. Balasuriya & Co. (Private) Limited 438, Union Investments (Private) Limited 279, Akbar Brothers (Private) Limited A/C No , Mr. C. R. Perera 243, Mr. H. A. Cabraal 200, Mr. A. P. Somasiri 200, Mr. R. Veerasuntharam 200, Mrs. F. S. Sabry 172, Mr. M. U. M. A. Sabry 162, Mr. K. C. Vignarajah 114, Peoples Leasing & Finance PLC / Dr. H. S. D. Soysa & Mrs. G. Soysa 111, Mrs. M. L. De Silva 110, Commercial Bank of Ceylon PLC A/C No , Mr. K. T. Konesh 100, Merchant Bank of Sri Lanka PLC / Mr. C. E. Weerapperuma 100, Merchant Bank of Sri Lanka & Finance PLC / R. R. S. Ananda 96, Mr. K. S. D. Senaweera 96, Commercial Bank of Ceylon PLC / M. H. Densil 94, J. B. Cocoshell (Private) Limited 92, Mr. S. S. Sithambaranathan 82, Total 44,562, Percentage of shares held by public as at 31 March 2018 : 20.35% No. of public shareholders as at 31 March : 1, Shareholding of Directors/CEO: No. of Shares Mr. A. J. Alles Director 100 Mr. K. Maheshwaran CEO 37,000