MELSTACORP PLC INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED

Transcription

1 INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 31st DECEMBER 2017

2 STATEMENTS OF COMPREHENSIVE INCOME COMPANY Rs. '000s Unaudited Unaudited Variance Unaudited Unaudited Variance For the 9 Months ended 31st December, % % Rs. '000 Rs. '000 Rs. '000 Rs. '000 Gross Revenue 80,360,376 81,853,935 (1.82) 151, , Net Revenue 32,219,895 29,911, , , Cost of Sales, Net Benefits Paid and Interest Expenses (22,589,968) (17,741,951) (1,768) (2,948) (40.03) Gross Profit 9,629,927 12,169,750 (20.87) 150, , Other Operating Income 1,149, , ,019,999 2,648,952 (61.49) Distribution Expenses (1,259,594) (1,263,924) (0.34) - - Administrative Expenses (3,507,430) (3,171,891) (107,921) (86,320) Other Operating Expenses (199,608) (49,488) (5,099) - - Profit from Operations 5,813,010 8,399,876 (30.80) 1,057,148 2,704,207 (60.91) Finance Income 922, , ,973 1,378,085 (54.00) Finance Cost (1,415,968) (884,361) (62,039) (173,230) (64.19) Net Finance Income/(cost) (493,669) (199,579) 571,934 1,204,855 (52.53) Share of Profit of Equity-Accounted Investees (Net of Tax) 1,221, , Gain on Bargaining Purchases 42, Profit before Tax for the Period 6,583,037 9,073,389 (27.45) 1,629,081 3,909,062 (58.33) Income Tax (2,260,898) (3,646,413) (38.00) (172,096) (299,065) (42.46) Profit for the Period 4,322,139 5,426,976 (20.36) 1,456,985 3,609,997 (59.64) Other Comprehensive Income Net Change in Fair Value of Available for Sale Financial Assets Reversal of AFS reserve on disposal of AFS Investments Share of Other Comprehensive Income of Equity- Accounted Investees (Net of Tax) 1,560,601 1,337, ,196,281 1,097, , , (93,774) 211,325 (144.37) Total Other Comprehensive Income 1,471,927 1,548,450 (4.94) 1,201,380 1,097, Total Comprehensive Income for the Period 5,794,066 6,975,426 (16.94) 2,658,365 4,707,757 (43.53) Profit Attributable to: Equity Holders of the Parent 4,387,954 5,776,995 (24.04) 1,456,986 3,609,997 (59.64) Non Controlling Interest (65,815) (350,019) (81.20) Profit for the Period 4,322,139 5,426,976 1,456,986 3,609,997 (59.64) Total Comprehensive Income Attributable to: Equity Holders of the Parent 5,859,933 7,325,411 (20.01) 2,658,365 4,707,757 (43.53) Non Controlling Interest (65,867) (349,985) (81.18) Total Comprehensive Income for the Period 5,794,066 6,975,426 2,658,365 4,707,757 Earnings per Share (Rs.) Basic Earnings per Share (24.04) (59.64)

3 STATEMENTS OF COMPREHENSIVE INCOME COMPANY Rs. '000s Unaudited Unaudited Variance Unaudited Unaudited Variance For the quarter ended 31st December, % % Rs. '000 Rs. '000 Rs. '000 Rs. '000 Gross Revenue 27,154,905 27,525,585 (1.35) 50,681 48, Net Revenue 11,119,752 10,334, ,681 48, Cost of Sales, Net Benefits Paid and Interest Expenses (7,283,562) (6,126,526) (473) (552) (14.31) Gross Profit 3,836,190 4,207,678 (8.83) 50,208 47, Other Operating Income 366, , , ,771 (35.63) Distribution Expenses (399,262) (408,939) (2.37) Administrative Expenses (1,512,356) (1,323,534) (59,234) (27,087) Other Operating Expenses (93,835) (20,661) , Profit from Operations 2,197,375 2,761,487 (20.43) 151, ,515 (42.33) Finance Income 206, , , ,757 (76.97) Finance Cost (458,941) (337,437) (51,728) (91,425) (43.42) Net Finance Income/(cost) (252,544) (218,067) , ,332 (81.65) Share of Profit of Equity-Accounted Investees (Net of Tax) 338, ,189 (29.03) Gain on Bargaining Purchases 2, Profit before Taxation 2,286,128 3,020,609 (24.32) 272, ,847 (70.36) Taxation (878,443) (1,464,211) (40.01) (53,519) (187,163) (71.41) Profit for the period 1,407,685 1,556,398 (9.55) 218, ,684 (70.10) Other Comprehensive Income Net Change in Fair Value of Available for Sale Financial Assets Reversal of AFS reserve on disposal of AFS Investments Share of Other Comprehensive Income of Equity- Accounted Investees (Net of Tax) (449,231) (504,022) (10.87) (658,196) (495,292) (4,707) (4,707) (4,943) 153,273 (103.22) Total Other Comprehensive Income (458,880) (350,749) (662,903) (495,292) Total Comprehensive Income for the Period 948,806 1,205,649 (21.30) (444,406) 235,392 (288.79) Profit Attributable to: Equity Holders of the Parent 1,461,688 1,667,026 (12.32) 218, ,684 (70.10) Non Controlling Interest (54,002) (110,628) (51.19) Profit for the Period 1,407,686 1,556,398 (9.55) 218, ,684 (70.10) Total Comprehensive Income Attributable to: Equity Holders of the Parent 1,002,838 1,316,282 (23.81) (444,406) 235,392 (288.79) Non Controlling Interest (54,032) (110,634) (51.16) Total Comprehensive Income for the Period 948,806 1,205,648 (21.30) (444,406) 235,392 (288.79) Earnings per Share (Rs.) Basic Earnings per Share (12.32) (70.10)

4 STATEMENTS OF FINANCIAL POSITION (222,125) 775,249 COMPANY Unaudited Unaudited Audited Unaudited Unaudited Audited As at, 31-Dec Dec Mar Dec Dec Mar-2017 Rs. '000s Rs. '000s Rs. '000s Rs. '000s Rs. '000s Rs. '000s Non-Current Assets Property, Plant and Equipment 23,542,520 22,619,673 22,869,435 5,348 4,663 5,637 Investment Property 1,435,877 1,213,752 1,431,040 2,848,489 2,787,907 2,843,652 Goodwill on Acquisition and Other Intangible Assets 2,123,026 2,649,625 2,327, Biological Assets 8,148,392 4,161,117 4,139, Investments in Subsidiaries ,675,432 24,963,552 43,531,339 Investment in Equity Accounted Investees 28,652,799 27,590,755 28,118,731 20,591,167 20,829,353 20,829,353 Other Non Current Financial Investments 21,693,243 19,918,004 19,733,466 16,700,832 15,162,148 14,390,082 Deferred Tax Asset 846, , ,604 1,208 19,889 1,208 Finance Lease, Hire Purchases and Operating Lease Receivables 2,761,736 2,050,928 1,623, Advances and Other Loans 199, , , ,403,019 81,580,014 81,629,388 84,822,756 63,767,914 81,601,753 Currents Assets Inventories 8,007,574 6,633,256 7,054,434 1, Produce on Bearer Biological Assets 9,284-5, Trade and Other Receivables 11,394,557 10,693,937 11,273,965 46,549 39, ,392 Finance Lease, Hire Purchases and Operating Lease Receivables 1,545, ,195 1,528, Advances and Other Loans 1,052,152 1,652,954 1,400, Amounts due from Related Companies 72, , ,087 2,948,978 1,275,498 2,532,176 Other Current Financial Investments 7,805,950 2,677,295 6,804,148 5,471,307 26,941,464 4,934,910 Cash at Bank and Cash in Hand 2,584,544 5,718,653 2,092,774 16, , ,469 32,471,530 28,358,318 30,289,424 8,484,345 28,546,312 7,999,865 Total Assets 121,874, ,938, ,918,812 93,307,101 92,314,226 89,601,618 EQUITY AND LIABILITIES Equity Stated Capital 89,100,000 89,100,000 89,100,000 89,100,000 89,100,000 89,100,000 Reserve 13,317,212 12,825,975 12,430,172 (1,395,815) (1,616,658) (2,597,197) Retained Earnings (28,198,199) (33,786,356) (33,449,856) 3,948,909 4,400,721 2,491,925 Equity Attributable to Equity Holders of the parent 74,219,014 68,139,619 68,080,316 91,653,094 91,884,063 88,994,728 Non Controlling Interest 3,967,766 3,179,343 3,216, Total Equity 78,186,780 71,318,962 71,296,881 91,653,094 91,884,063 88,994,728 Non-Current Liabilities Interest Bearing Loans and Borrowings 4,267,266 2,828,199 3,436, Deferred Tax Liabilities 2,514,258 1,963,700 2,511, ,758 85, ,757 Employee Benefits 1,681,355 1,028, ,936 5,492 3,833 4,316 Other Deferred Liabilities 377, , , ,840,724 6,064,448 7,091, ,249 89, ,073 Current Liabilities Trade and Other Payables 14,878,091 13,083,997 14,322,948 15,644 5,050 3,357 Deposit Liabilities 3,518,648 1,681,646 1,541, Other Deferred Liabilities 77,588 74,603 82, Amount due to Related Companies 417, , , ,515 43,014 44,853 Income Tax Payable 580,800 2,202,611 1,484, , , ,073 Interest Bearing Loans and Borrowings 2,834,746 3,571,585 4,855, Bank Overdrafts and Other Short Term Borrowings 12,539,836 11,625,448 10,910,049 1,144, ,534 34,847,047 32,554,922 33,530,026 1,544, , ,817 Total Equity and Liabilities 121,874, ,938, ,918,812 93,307,101 92,314,226 89,601,618 Net Assets per Share (Rs.) The above unaudited figures are provisional and subject to audit. I certify that the Financial Statements have been prepared & presented in compliance with the requirements of Companies Act No. 07 of sgd/- D.M.Welikandage Manager-Finance The Directors are responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the board sgd/- D.H.S.Jayawardena Chairman 13th February 2018 in Colombo. sgd/- A.L.Gooneratne Managing Director

5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of parent Stated Revaluation Capital Reserve General Retained Non Available for Exchange Timber Investment Cash Flow Earnings/ controlling sale Total fluctuation Hedge Reserve (Losses) interest Total equity capital reserve reserve fund reserve reserve reserve reserve fund Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Restated Balance as at 1st April ,320,750 7,008,181 12,137 9, , , ,829 2,269, ,705,758 63,205,562 3,529,347 66,734,909 Total Comprehensive Income for the Period Profit for the Period ,776,995 5,776,995 (350,019) 5,426,976 Other Comprehensive Income Net Change in Fair Value of Available for Sale Financial Assets ,337, ,337, ,337,125 Defined Benefit Plan Actuarial Gains (Losses) (Net Of Tax) Share of Other Comprehensive Income of Equity-Accounted Investees (Net of Tax) ,939 - (28,587) - (27) 211, ,325 Total Other Comprehensive Income for the period ,939-1,308, (27) 1,548, ,548,450 Total Comprehensive Income for the period ,939-1,308, ,776,968 7,325,412 (349,986) 6,975,426 Transactions with owners directly recorded in the Equity Dividends paid to Non Controlling Interest (19) (19) Share of Net Assets of Equity-Accounted Investees (Net of Tax) Dividends Paid During the Period (1,005,000) (1,005,000) - (1,005,000) New Share Issue 40,779, (40,779,250) Transferred From/To Retained Earnings , (98,537) Repurchase of MC Shares held in Trust (1,392,076) (1,392,076) - (1,392,076) Effect Of acquisition of Non Controlling Interest of Equity Accounted Investees ,322 12,322-12,322 Other changes in net assets of equity accounted investees (60) (6,541) (6,601) - (6,601) Total Contributions by and Distributions to Owners 40,779, (60) 98, (43,269,082) (2,391,355) (19) (2,391,374) Balance as at 31st December ,100,000 7,008,181 12,137 9, , , ,366 3,578, (33,786,356) 68,139,619 3,179,343 71,318,962

6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of parent Stated Revaluation Capital Reserve General Retained Non Available for Exchange Timber Investment Cash Flow Earnings/ controlling sale Total fluctuation Hedge Reserve (Losses) interest Total equity capital reserve reserve fund reserve reserve reserve reserve fund Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Restated Balance as at 1st April ,100,000 7,256,767 12,137 14, , , ,163 2,572, (33,449,856) 68,080,316 3,216,565 71,296,881 Total Comprehensive Income for the Period Profit for the Period ,387,954 4,387,954 (65,815) 4,322,139 Other Comprehensive Income Net Change in Fair Value of Available for Sale Financial Assets ,560, ,560,654 (52) 1,560,601 Reversal of AFS reserve on disposal of AFS Investments , ,099-5,099 Share of Other Comprehensive Income of Equity-Accounted Investees (Net of Tax) ,709-1,332 - (150,815) - (93,774) - (93,774) Total Other Comprehensive Income for the period ,709-1,567,085 - (150,815) 4,387,954 5,859,933 (65,867) 5,794,066 Total Comprehensive Income for the period Transactions with owners directly recorded in the Equity Dividends paid to Non Controlling Interest (11) (11) Share of Net Assets of Equity Accounted Investees ,621 19,621-19,621 Transferred From/To Retained Earnings ,320-41, (42,494) Effects of Business Combinations of Equity accounted Investes - (20,574) ,573 4,999-4,999 Acquisition of Non Controlling Interest of Subsidiaries , ,142 (371,726) (117,584) Acquisition of control over equity accounted investees - (335,758) (271,101) ,859-1,188,805 1,188,805 Total Contributions by and Distributions to Owners - (356,332) - - 1,320 - (229,927) , , ,068 1,095,829 Balance as at 31st December ,100,000 6,900,435 12,137 14, , , ,236 4,139,337 - (150,815) (28,198,199) 74,219,014 3,967,766 78,186,780

7 STATEMENTS OF CHANGES IN EQUITY COMPANY Stated Revaluation Available for Retained sale Total capital reserve reserve earnings/(losses) Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance as at 1st April ,320, ,691 (2,826,109) 2,182,800 47,789,132 Profit for the Period ,609,997 3,609,997 Other Comprehensive Income - Net change in fair value of available for sale financial assets - - 1,097,760-1,097,760 Revaluation of Property,Plant and Equipment Actuarial Gain/(Losses) on retirement benefit obligations Income tax on other comprehensive income Total Other Comprehensive Income for the period - - 1,097,760-1,097,760 Total Comprehensive Income for the period - - 1,097,760 3,609,997 4,707,757 Transactions with Owners of the Company directly recognized into Equity Issue of shares 40,779, ,779,250 Repurchase of MC Shares held in Trust (1,392,076) (1,392,076) 40,779, (1,392,076) 39,387,174 Balance as at 31st December ,100, ,691 (1,728,349) 4,400,721 91,884,063 Balance as at 1st April ,100, ,691 (2,708,886) 2,491,923 88,994,728 Profit for the Period ,456,985 1,456,985 Other Comprehensive Income - Net change in fair value of available for sale financial assets - - 1,196,281-1,196,281 Reversal of AFS reserve on disposal of AFS Investments - - 5,099-5,099 Income tax on other comprehensive income Total Other Comprehensive Income for the period - - 1,201,380-1,201,380 Total Comprehensive Income for the period - - 1,201,380 1,456,985 2,658,365 Transactions with Owners of the Company directly recognized into Equity Issue of Shares Share buy back Dividend paid Balance as at 31st December ,100, ,691 (1,507,506) 3,948,908 91,653,094

8 STATEMENTS OF CASH FLOWS COMPANY For the 9 Months ended 31st December, Rs. '000 Rs. '000 Rs. '000 Rs. '000 CASH FLOW FROM OPERATING ACTIVITIES Profit before Taxation 6,583,037 9,073,389 1,629,081 3,909,062 Adjustment for Depreciation and amortization of PPE,Biological assets and intangible assets 1,834,325 1,406,607 1, Provision for gratuity 72,897 78,844 1, Interest Expenses 1,382, ,269 44,113 83,078 Interest income (901,267) (481,320) (633,973) (1,198,124) Dividend income (332,817) (394,170) (957,971) (697,340) (Gain) / loss on Disposal of Property, Plant and Equipment (15,940) (20,385) - (1) Provision/ (Reversal of provisions) for Inventories (20,680) (39,933) - - Provision/(Reversal) for Bad & Doubtful Debts and impairment 193,570 97, Gain on bargaining purchases (42,023) Share of profit of equity-accounted investees (net of tax) (1,221,673) (873,092) - - Gain on Fair value of investment in equity accounted investees (163,770) (Gain)/ Loss on disposal of other financial investments (156,608) 4,355 (56,923) - Gain on Liquidation of Share Trust - (28,562) - (28,562) Gain on Repaurchase of Shares by Subsidiaries (1,922,500) Deferred income recognized (8,199) (8,436) - - (Gain) / loss on Change in Fair Value of Biological Assets (26,261) (54,000) - - (Gain)/loss on change in fair value of financial assets at fair value through profit or loss 2,223 (101,925) 17,926 (89,808) Operating Profit before Working Capital Changes 7,179,358 9,411,499 44,430 57,469 (Increase)/Decrease in Inventories (714,757) (579,163) (391) - (Increase)/Decrease in Receivables (483,708) (979,450) 61,843 (327,642) (Increase)/Decrease in Related Party Receivable and Payable (470,228) (269,299) - Increase/(Decrease) in Payables 2,089,694 1,581,804 12,287 (59,760) Cash Generated from Operations 7,600,359 9,434,690 (151,131) (329,933) Dividend Received 424, , , ,340 Interest Paid (1,429,848) (752,269) (44,113) (83,078) Income Tax Paid (3,148,558) (2,963,830) (404,727) (6,914) Retiring Gratuity Paid (100,253) (68,429) - 1 Net Cash Flow from Operating Activities 3,346,216 6,312, , ,416 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of equity accounted investees (484,528) (474,454) (497,906) (474,454) Investment in Subsidiaries (408,001) - (408,001) - Loans disbursed to Subsidiaries - - (2,411,381) - Loans settled by Subsidiaries - 500,333 Cash received from Repurchase of Shares by Subsidiaries ,500,001 Net proceed from disposal/(acquisition)of Other Investments (1,237,691) (2,573,556) (1,606,774) (1,423,765) Acquisition of Property, Plant & Equipment and intangible assets (1,502,098) (1,943,885) (5,350) (559) Additions of Mature and Immature Plantations (108,982) (192,665) - - Proceeds on Disposal of Property, Plant & Equipment 224,288 26, Interest Received 901, ,320 1,592,305 91,284 Net Cash Flow Used in Investing Activities (2,615,746) (4,677,046) (2,836,774) 692,574 CASH FLOW FROM FINANCING ACTIVITIES Short Term Borrowings from Subsidiaries - - 1,373,707 1,534,162 Repayment of short term borrowings to subsidiaries - - (336,833) (2,237,400) Laon and borrowings Received 3,591,059 2,244, Repayments of loan and borrowings (5,031,677) (1,293,066) - - Receipt of deferred Income (4,801) 1, Dividends paid - (1,005,000) - - Dividend paid by subsidiaries to minority share holders (11) (19) - - Net Cash Flow from Financing Activities (1,445,430) (52,239) 1,036,875 (703,238) Net Increase/Decrease in Cash & Cash Equivalent during the year (714,959) 1,582,825 (1,441,897) 266,752 Cash & Cash Equivalents At the beginning of the year (8,817,275) (7,489,621) 313,935 21,276 Net Cash and Cash Equivalants of Acquisition of Subsidiaries (423,058) Net movement during the year (714,959) 1,582,825 (1,441,897) 266,752 At the end of the year (Note A) (9,955,292) (5,906,796) (1,127,962) 288,028 Note A-Cash and Equivalents are as follows Short Term Deposits 1,322,790 1,491,894 4, ,964 Cash in Transit 96,899 84, Cash in Hand & Bank 1,164,855 4,142,651 11,528 12,004 Bank overdrafts and other short term borrowings (12,539,836) (11,625,448) (1,144,159) (940) (9,955,292) (5,906,796) (1,127,962) 288,028

9 NOTES TO THE FINANCIAL STATEMENTS SEGMENTAL INFORMATION For the 9 Months ended 31st December, Rs.'000 Rs.'000 (a) Turnover Beverages 71,193,527 74,258,663 Plantations 2,490,301 1,848,068 Telecommunications 2,218,410 2,278,368 Financial services 2,789,576 2,074,149 Diversified 1,668,563 1,394,686 Gross Turnover 80,360,376 81,853,935 Turnover based Taxes (48,140,481) (51,942,234) Net Turnover 32,219,895 29,911,701 (b) Industry Segment Profit Beverages 4,913,436 8,792,840 Plantations 355,915 (118,894) Telecommunications (1,249,791) (974,193) Financial services 315, ,192 Diversified 983, ,352 5,319,341 8,200,297 Share of Associate Company Profits 1,221, ,092 Gain on Bargaining Purchases 42,023 - Net Profit Before Tax 6,583,037 9,073,389 Taxation (2,260,898) (3,646,413) Net Profit After Tax 4,322,139 5,426,976

10 NOTES TO THE FINANCIAL STATEMENTS 1 The interim Financial Statements have been prepared in accordance with the Accounting Policies set out in the most recent Annual Report and are in compliance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. 2 Where appropriate, the previous year's presentation has been amended to conform to current year classifications. 3 Amount due from the Secretary to the Treasury o/a of SLIC Shares As per the Judgment delivered by the Supreme Court of the Democratic Socialist Republic of Sri Lanka on June 2009 it was declared and directed that the shares of SLIC purported to have been sold to Distilleries Consortium on 11th April 2003 along with any shares purchased from employees as per SSPA shall be deemed to have been held for and on behalf of the Secretary to the Treasury. As directed by the said judgment, the Secretary to the Treasury returned the money that was paid by Group Subsidiary Milford Holdings (Pvt) Limited (MHL) to purchase shares from SLIC. In respect of Profits Earned Further, MHL was entitled to retain the profits of SLIC derived by MHL from 11 April 2003 to 04st June 2009 in lieu of the interest for the aforesaid investment. The Secretary to the Treasury was directed to cause profits of SLIC to be computed and audited from the date of the last audited Balance Sheet of SLIC to 04th June 2009 to enable MHL to obtain such profits. However, Secretary to the Treasury has not yet determined the value of profits to be retained by the MHL; hence no adjustments were made to the Financial Statements in this regards. 4 Impact of Revival of Underperforming Enterprises and Underutilized Assets Act Pelwatte Sugar Industries PLC Group (PSIP) Consequent to the enactment and passage of the above Act of Parliament on 9 November 2011, the state officials are occupying the land leased to PSIP and running the operations of PSIP and its related companies. Subsequently a Compensation Tribunal was formed as required by the Act. Without assuming any liability or without any prejudice to, or impact on its rights, PSIP has submitted a claim to the Compensation Tribunal. On 13 March 2013 Commercial High Court of Western Province (Colombo Civil) issued a winding-up order of Pelwatte Sugar Industries PLC. The Court has appointed P.E.A. Jayewickreme and G.J. David, as the Liquidators. Since our group is deprived of participating in controlling the financial, operating policies and other relevant activities, the financial statements of PSIP have been deconsolidated from the group financial statements of DCSL PLC in year 2013/14. The investment made in PSIP is classified as a fully impaired long term investment in the group.

11 NOTES TO THE FINANCIAL STATEMENTS 5 Non Financial Information 31-Dec Dec Mar-2017 Net Assets Value per Share - Group (Rs) Company (Rs) Market Price per Share - Last Traded Rs) Highest (Rs) Lowest (Rs) ,165,398,072 ordinary shares represent the Stated Capital, 1,000 shares of which are Non-Voting. 7 Earnings per Share The Number of shares (1,165,398,072) held as at 31 March 2017 have been used for the purpose of Calculation of Earnings per Share. Further prior year Earnings per share was restated by using number of shares held as at 31 March Investment in DCSL Pending Allotment Melstacorp invested Rs.20Bn in Equity of DCSL with effect from 1st January 2017 where the shares are pending to be alloted as at Balance Sheet date. DCSL used these funds to settle their liabilities against Melstacorp. 9 Business Combinations 9.1 Acquisition of Controlling Interest in Madulsima Plantations PLC Melstacorp PLC has acquired 16,949,673 shares of Madulsima Plantations PLC during the period which was a Associate Company to the Group previously and now has become a Subsidiary after the new Acquisition. The New percentage holding of the Company is 55.91% 9.2 Acquisition of Non Controlling Interest in Balangoda Plantations PLC Melstacorp PLC has acquired 3,636,363 shares in Balangoda Plantations PLC and as a result the percentage Holding has increased from 43.23% to 58.61%. 9.3 Acquisition of Shares in Aitken Spence PLC Melstacorp PLC has acquired 8,100,000 shares in Aitken Spence PLC during the period which is Associate of the Group and as a result the percentage Holding has increased from 45.17% to 47.17% 10 Events occurring after the reporting period Subsequent to the reporting period, no circumstances have arisen which would require adjustment to or disclosure in the financial statements. 11 Contingent Liabilities There has not been a significant change in the nature of the contingent liabilities which were disclosed in the Annual Report for the year ended 31 March 2017.

12 NOTES TO THE FINANCIAL STATEMENTS 12 Top 20 Shareholders 31 December 2017 Share Holding Rank Name No of Shares % 1 Milford Exports (Ceylon) (Pvt) Limited 497,882, Lanka Milk Foods (CWE) Limited 151,846, Mr.M A Yaseen 84,530, Commercial Bank of Ceylon PLC/L E M Yaseen 52,200, Bnymany Re-Neon Liberty Lorikeet Master Fund LP 38,730, Caceis Bank Luxembourg Branch-Barca Global Master Fund LP 27,934, Northern Trust Company S/A Kuroto Fund LP 23,391, Citigroup Global Markets Limited Agency Trading Prop Securities A/C 17,151, Commercial Bank of Ceylon PLC/M A Y Yaseen 16,000, Mrs.L.E.M.Yaseen 15,606, CITIBank New York S/A Norges Bank Account 2 15,099, Lahugala Plantation (Private) Limited 14,782, Bnymsanv Re- Blackrock Frontiers Invesment Trust PLC 12,639, Deutsche Bank AG- London 11,728, Mrs.S.M Chrysostom 11,390, Bnymsanv Re-Consilium Frontier Equity Fund L P 10,401, Stassen Exports (Pvt) Ltd 8,456, Mr.Don Hasitha Stassen Jayawardena 7,531, HSBC Intl Nom Ltd- SSBT - Parametric Emerging Markets Fund 6,738, HSBC Intl Nom Ltd- SSBT - Parametric Tax-Managed Emerging Markets Fund 6,203, Total Shares Held by Top 20 Share Holders 1,030,242, Shares Held by Other Share Holders 135,154, Total shares listed 1,165,397, Percentage of Shares held by the public : 42.82% Total No. of share holders who hold the public holding: 10,556 Directors' Share Holdings as at 31 December 2017 No of Shares % Mr. D. H. S. Jayawardena - Mr. C. R. Jansz - Dr. A. N. Balasuriya - Capt K J Kahada - Mr.N de S Deva Aditya - Mr.A.L.Gooneratne - Mr.D.Hasitha S Jayawardena 7,531, Mr.R. Seevaratnam - Ms. V. J. Senaratne (Alternate Director to Mr. N.De.S.Deva Aditya) -

13 NOTES TO THE FINANCIAL STATEMENTS CORPORATE INFORMATION NAME OF COMPANY Melstacorp PLC REGISTERED OFFICE No.110, Norris Canal Road, Colombo 10, Sri Lanka. Tel: , Fax: Web: COMPANY REGISTRATION NUMBER PB PQ BOARD OF DIRECTORS Mr.D.H.S.Jayawardena - Chairman Mr. A.L. Gooneratne - Managing Director Mr.C.R.Jansz Mr.N. De S. Deva Aditya Capt. K. J. Kahanda Dr.A.N.Balasuriya Mr. D. Hasitha S. Jayawardena Mr.R. Seevaratnam Ms.V.J.Senaratne (Alternate Director to Mr.N. De S. Deva Aditya) COMPANY SECRETARY Messrs. Coporate Services (Private) Limited No.216, De Saram Road, Colombo 10. AUDITORS KPMG Chartered Accountants No.32A, Sir Mohamed Macan Marker Mawatha, Colombo 03, Sri Lanka. REGISTRARS P W Corporate Secretarial (Pvt) ltd., No. 3/17, Kynsey Road, Colombo 08, Sri Lanka. BANKERS Commercial Bank of Ceylon PLC DFCC Bank PLC Bank of Ceylon Hatton National Bank PLC