SINGER AT HOME WORLDWIDE REGNIS (LANKA) PLC INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 31ST MARCH 2017

Transcription

1 SINGER R AT HOME WORLDWIDE REGNIS (LANKA) PLC INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 31ST MARCH 2017

2 STATEMENT OF FINANCIAL POSITION Group Group Group Company Company Company 31-March 31-March 31-December 31-March 31-March 31-December ASSETS Note Rs'000 Rs'000 Rs'000 Rs'000 Rs'000 Rs'000 Non-Current Assets Property, Plant & Equipment 1,020, , , , , ,730 Intangible Assets 2,107 2,412 2,183 1,776 1,987 1,829 Investments in Subsidiary , , ,000 Available for Sale Financial Asset 20,381 20,760 20,181 20,381 20,760 20,181 Other Receivables 2,969 4,938 4,536 1,638 1,680 1,913 Total Non-Current Asset 1,045, ,892 1,006,496 1,111, ,156 1,071,653 Current Assets Inventories 923, ,174 1,160, , , ,301 Trade and Other Receivables , , , , , ,606 Amounts Due from Related Parties ,258 1,076 - Prepayments 16,886 5,986 7,398 14,383 4,102 5,262 Cash at Bank and In hand 49,707 9,327 9,566 49,657 9,277 8,494 Total current Assets 1,810,564 1,292,616 1,629,150 1,466, ,465 1,226,663 Total Assets 2,856,225 2,020,507 2,635,647 2,577,996 1,726,621 2,298,317 EQUITY AND LIABILITIES Equity Stated Capital 211, , , , , ,192 Reserves 415, , , , , ,768 Retained Earnings 883, ,225 1,004, , , ,636 Total Equity 1,510,313 1,256,801 1,632,579 1,324,555 1,065,222 1,397,596 Non-Current Liabilities Deferred Tax Liabilities 74,254 71,217 74,507 65,244 63,824 65,947 Employee benefits 92,764 80,869 89,593 90,931 77,554 87,931 Loans and Borrowings 75, , Total non-current liabilities 242, , , , , ,878 Current Liabilities Trade and Other Payable , , , , , ,088 Amounts Due to Related Parties 18,325 7,226-16,808 7,528 - Provisions 78,942 64,018 53,929 60,691 45,892 39,269 Current tax liabilities 66, ,153 60,363 43,366 81,677 38,933 Dividends Payable 3, ,650 3,090 3, ,650 3,090 Loans and Borrowings 437, , , ,782 Bank overdraft 132,006 63,434 82,870 41,819 42,250 68,681 Total current liabilities 1,103, , ,968 1,022, , ,843 Total Liabilities 1,345, ,705 1,003,068 1,253, , ,721 Total Equity and Liabilities 2,856,225 2,020,507 2,635,647 2,577,996 1,726,621 2,298,317 Net Assets per Share I certify that the financial statements of the company comply with the requirements of the Companies Act No 7 of 2007 (Sgd.) Eraj Fernando Chief Financial Officer Figures in brackets indicate deductions. The above figures are provisional and subject to Audit. The Board of directors is responsible for the preperation and presentation of these financial statements. Signed for and on behalf of the board (Sgd.) Dr.S. Kelegama Director (Sgd.) H.A.Pieris Director May 9, 2017 Colombo REGNIS (LANKA) PLC 02

3 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Three Months ended March Group Group Company Company Group Company Variance Variance Vs prior Year Vs prior Year Note RS'000 RS'000 RS'000 RS'000 RS'000 % RS'000 % Revenue 2.1 1,512,529 1,314,349 1,220, , , % 241, % Cost of Sales (1,338,325) (1,175,054) (1,099,537) (895,979) (163,271) 13.9% (203,558) 22.7% Gross Profit 174, , ,181 83,733 34, % 37, % Other Operating Income , % 75, % Administrative Expenses (5,603) (5,641) (4,773) (4,987) % % Selling & Distribution Expenses (30,279) (15,778) (21,750) (6,202) (14,501) 91.9% (15,548) 250.7% Results from Operating Activities 138, , ,300 72,551 20, % 97, % Finance Cost (13,139) (1,403) (13,225) (1,318) (11,736) 836.5% (11,907) 903.4% Finance Income 1,028 2, ,681 (1,275) -55.4% (721) -42.9% Net Finance Cost Profit Before Taxation (12,111) 126, (12,265) 363 (13,011) % (12,628) % 118, ,035 72,914 7, % 85, % Taxation Expense (40,263) (28,819) (22,818) (19,281) (11,444) 39.7% (3,537) 18.3% Profit for the period 85,990 89, ,217 53,633 (3,974) -4.4% 81, % Other Comprehensive Income Items that are or may be reclassified subsequently to profit or loss Net change in fair value of available-for-sale financial assets % 2 1.0% Other Comprehensive Income for the period,net of tax % 2 1.0% Total Comprehensive Income for the period 86,190 90, ,417 53,831 (3,972) -4.4% 81, % Profit attributable to: Owners of the Company 85,990 89, ,217 53,633 (3,974) -4.4% 81, % Non controlling interest Profit for the period 85,990 89, ,217 53,633 (3,974) -4.4% 81, % Total Comprehensive Income attributable to: Owners of the Company 86,190 90, ,417 53,831 (3,972) -4.4% 81, % Non controlling interest Total Comprehensive Income for the period 86,190 90, ,417 53,831 (3,972) -4.4% 81, % Earnings per Share Figures in brackets indicate deductions. The above figures are provisional and subject to Audit. Share Prices Three Month Ended Three Month Ended 31st March st March 2016 Highest Rs Rs Lowest Rs Rs Last Traded Price Rs Rs REGNIS (LANKA ) PLC 04

4 STATEMENT OF CHANGES IN EQUITY Stated Revaluation Available Retained Capital Reserve For Sale Earnings Total Reserves Group Rs'000 Rs'000 Rs'000 Rs'000 Rs'000 Balance as at 1st January , ,986 2, ,310 1,268,050 Profit for three months ,964 89,964 Total other comprehensive income for the period Total comprehensive income for the period ,964 90,162 Transaction with owners of the company, recognised directly in equity Final dividends 2015 Total transaction with owners of the company Realisation of revaluation surplus (101,411) (101,411) (101,411) (101,411) - (1,362) - 1,362 - Balance as at 31st March , ,624 2, ,225 1,256,801 Profit for the nine months ended , ,360 other comprehensive income Revaluation of property, plant & equipment Re-measurement of defined benefit obligation Related taxes Total other comprehensive income for the year Total comprehensive income for the year - 116, , ,871 2,871 - (3,114) - (633) (3,747) - 113,758 (579) 2, , ,758 (579) 262, ,777 Total transaction with owners of the company Realisation of revaluation surplus - (3,795) - 3,795 - Balance as at 31 December , ,587 2,181 1,004,618 1,632,579 Profit for three months ,990 85,990 Total other comprehensive income for the period Total comprehensive income for the period ,990 86,190 Transaction with owners of the company, recognised directly in equity Final dividends (208,455) (208,455) Total transaction with owners of the company (208,455) (208,455) Realisation of revaluation surplus - (1,233) - 1,233 - Balance as at 31st March , ,354 2, ,386 1,510,313 REGNIS (LANKA ) PLC 05

5 STATEMENT OF CHANGES IN EQUITY Stated Revaluation Available Retained Capital Reserve For Sale Earnings Total Reserves Company Rs'000 Rs'000 Rs'000 Rs'000 Rs'000 Balance as at 1st January 2016 Profit for three months Total other comprehensive income for the period Total comprehensive income for the period 211, ,986 2, ,062 1,112, ,633 53, ,633 53,831 Transaction with owners of the company, recognised directly in equity Final dividends 2015 Total transaction with owners of the company Realisation of revaluation surplus Balance as at 31st March 2016 Profit for the nine months ended (101,411) (101,411) (101,411) (101,411) - (1,362) - 1, , ,624 2, ,646 1,065, , ,666 other comprehensive income Revaluation of property, plant & equipment Re-measurement of defined benefit obligation Related taxes Total other comprehensive income for the year Total comprehensive income for the year Total transaction with owners of the company Realisation of revaluation surplus Balance as at 31 December , , (3,114) - (205) (3,319) - 113,758 (579) , ,758 (579) 219, ,371 - (3,795) - 3, , ,587 2, ,633 1,397,595 Profit for three months , ,217 Total other comprehensive income for the period Total comprehensive income for the period , ,417 Transaction with owners of the company, recognised directly in equity Final dividends (208,455) (208,455) Total transaction with owners of the company (208,455) (208,455) Realisation of revaluation surplus - (1,233) - 1,233 - Balance as at 31st March , ,354 2, ,628 1,324,555 REGNIS (LANKA) PLC 06

6 STATEMENT OF CASH FLOWS Cash Flows from Operating Activities Group Group Company Company March March March March Rs. '000 Rs. '000 Rs. '000 Rs. '000 Profit before income tax expense 126, , ,035 72,914 Adjustments for: Depreciation of property, plant & equipment 11,936 10,993 9,310 8,994 Amortisation of intangible assets Provision for inventories (1,907) (607) (3,024) 164 Interest expense 13,139 1,403 13,225 1,318 Interest income (1,028) (2,310) (960) (1,688) Dividend Income - - (75,600) - Provision for employee benefits 3,171 3,179 3,000 3,031 Operating profit before working capital changes 151, , ,039 84,773 (Increase)/decrease in inventories 239,557 (4,919) 150,926 (29,440) (Increase)/decrease in trade and other receivables (367,599) (160,689) (333,085) (110,524) (Increase)/decrease in prepayments (9,488) 3,217 (9,121) 2,151 (Increase)/decrease in amounts due from related parties - - (4,258) (1,076) Increase /(decrease) in trade and other payables 17,200 19, ,690 52,131 Increase /(decrease) in Provision 25,013 18,668 21,422 13,153 Increase/(decrease) in amount due to related parties 18,325 7,226 16,808 7,527 Cash generated from operations 74,649 14,273 65,421 18,694 Interest paid (14,367) (1,398) (14,453) (1,318) Income tax paid (26,197) (8,822) (19,088) (6,109) Net cash flow from operating activities 34,085 4,053 31,880 11,267 Cash Flows from Investing Activities Acquisition of property, plant & equipment and intangible assets (52,545) (17,150) (49,022) (17,040) Interest income received 759 2, ,332 Dividend Income received ,600 - Net cash flows used in investing activities (51,786) (14,840) 27,440 (15,707) Cash Flows from Financing Activities Proceeds from long-term loans 200, ,000 - Repayment of long-term loans (24,990) - (24,990) - Proceeds from short-term borrowings 372, ,704 - Repayment of short-term borrowings (330,553) - (330,553) - Dividend paid (208,455) - (208,455) - Net cash flows from/(used in) financing activities 8,706-8,706 - Net increase/(decrease) in cash and cash equivalents (8,995) (10,787) 68,025 (4,440) Cash and cash equivalents at the beginning of the period (73,304) (43,320) (60,187) (28,533) Cash and cash equivalents at the end of the March (82,299) (54,107) 7,838 (32,973). REGNIS (LANKA ) PLC 07

7 Notes to the Interim Financial Statements (Contd) 1 The Interim Condensed Financial Statements of the Company and Group have been prepared on the basis of the same accounting policies and methods applied for the year ended 31 st December 2016, are in Compliance with the Sri Lanka Accounting Standards LKAS 34 Interim Financial Reporting. 2.0 Segment Information Segmental Analysis of Group is as Follows. 2.1 For the Three Month Enderd 31st March 2017 Refrigerator Washing Machine Other Consolidation Adjustment Total Total External Segment Revenue 1,220, , , ,269 8,046 13, ,512,530 1,314,349 Inter-Segment revenue ,274 70,602 (82,274) (70,602) - - Reportable segment revenue 1,220, , , ,269 90,320 83,971 (82,274) (70,602) 1,512,529 1,314,350 Segment Result 170,300 72,551 34,190 35,768 10,882 11,385 (77,008) (1,821) 138, ,883 - Net Finance cost (12,265) (12,111) Profit before taxation 158,035 72,914 34,307 36,175 10,919 11,515 (77,008) (1,821) 126, ,783 Capital expenditure 49,022 17, , ,545 17, Segmental Information - Company The company, Regnis (Lanka) PLC, does not have different segments for the Refrigerators and Bottle Coolers because, they require same technology and market strategies. The segment is managed as one SBU (Strategic Business Unit) and CEO considers the products manufacture by the company within Refrigerator segment. 3.0 TRADE AND OTHER RECEIVABLES & PAYABLES Group Group Group Company Company Company March March December March March December 3.1 TRADE AND OTHER RECEIVABLES Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Trade Receivable from Related Parties - Singer (Sri Lanka) PLC 787, , , , , ,043 - Brand Trading (Cambodia) Ltd Singer Industries (Ceylon) PLC - 1, Trade & Other receivables 33,186 27,987 18,835 26,541 23,522 18, , , , , , ,606 Group Group Company Company Company Company March March December March March December 3.2 TRADE AND OTHER PAYABLES Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Trade Payable to Related Parties - Regnis Appliances (Pvt) Ltd ,970 59,134 Trade & other payable 367, , , , , , , , , , , ,088 REGNIS (LANKA ) PLC 08

8 4 CAPITAL COMMITMENTS & CONTINGENCIES Contingencies Notes to the Financial Statements The company cleared a shipment of imported goods during the year 2008 on provision of a bank guarantee amounting to Rs. 6,522,083/- to the Director of Customs. The bank guarantee relates to alleged additional duty payable on imports which is contested by the Company. The customs inquiry initiated in 2008 is still pending. The management is of the opinion that there is no basis that the company is liable for additional duty and hence, no provision is made in the financial statements Corporate guarantees were given to banks on behalf of the Subsidiary Company Regnis Appliances (Pvt) Ltd amounting to Rs.345 Mn. for the purpose of obtaining banking facilities. Other than the above, the company does not have significant contingencies as at the Reporting date Capital Commitments There were no material capital commitments as at the Reporting date, except that the company entered in to an agreement with Anhui Sunmine Mechanical (the supplier) to procure a foaming line for US $ 530, EVENTS OCCURRING AFTER THE REPORTING DATE No Circumstances have arisen since the reporting date, which would require adjustments or disclosure in the financial statement except for the following REGNIS (LANKA ) PLC 09

9 Notes to the Financial Statements 5.0 RELATED PARTY TRANSACTIONS 5.1 Parent and Ultimate controlling party Singer (Sri Lanka) PLC acquired 58.29%, the entire equity stake held by Retail Holdings (Sri Lanka) BV [formally know as Singer (Sri Lanka) B.V] on 23rd February 2016 after getting necessary regulatory approval. Accordingly, Singer ( Sri Lanka ) PLC is the immediate parent of the company with effect from 23rd February 2016 Retail Holdings (Sri Lanka) B.V will continue to be an intermediate parent Company The Company s Ultimate Parent undertaking and controlling party is Retail Holdings N.V which is incorporated in Curacao. 5.2 Transactions with Subsidiary Company a) During the period Company had following transactions with its Subsidiary Company Regnis Appliances (Pvt) Ltd March 2016 March Principal Activities Rs. Mn. Rs. Mn. Manufacture and Assembly of washing machines and producing plastic components for Refrigerators Bank guarantee issued Opening balance (47.0) (55.4) Purchases (96.6) (80.0) Sale of raw materials Transactions with Affiliate Entities Funds (received)/paid (52.2) 76.2 Expenses incurred Interest Income on Corporate Guarantee Interest expense (0.5) (0.5) Dividend Received Staff Loan transfer - - Fixed Asset Purchases - Balance at the end of the period (118.7) (58.1) Transactions with the following parties have been disclosed in Note No 06 Company Singer(Sri Lanka) PLC Singer Industries (Ceylon) PLC Reality (Lanka) Ltd Brand Trading (Cambodia) Ltd Relationship Parent Company Related Company Related Company Affiliate Company Regnis (Lanka) PLC holds 15% stake in Reality Lanka Ltd 5.7 The Company is authorized to use the name "REGNIS" as part of its corporate name so long as Singer Asia Limited continues to hold, directly or indirectly,at least a majority of the voting stock of the Company. Related party transactions were made on terms equivalent to those that prevail in arm's length transactions are made only if such terms can be substantiated. Transaction with related parties are carried out in the ordinary course of the business. Outstanding current account balances at the year end are unsecured,and the settlements will be made in cash subject to the credit period. Transactions with related parties are carried out in the ordinary course of the business. Outstanding current account balances at the year end are unsecured, and the settlements will be made in cash subject to the following credit period. Credit Period March 2017 Credit Period March 2016 Singer (Sri Lanka) PLC 4 Weeks 2 Weeks The related party borrowings are at pre-determined interest rates and terms. REGNIS (LANKA ) PLC 10

10 As reported previously: Interim Financial Statements For the Three Months Ended 31st March RELATED PARTY DISCLOSURES Notes to the Financial Statements a) Transactions with Key management personnel (i) Loans to Directors No loans have been given to the Directors of the company (ii) Key management personnel & directors transaction A number of key management personnel or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of these entities. These transactions are given below The aggregated value of transactions and outstanding balance relating to key management personnel and entities over which they have control or significant influence were as follows: Name of the Company and Relationship Nature of Transaction Rs. Mn. Rs. Mn. Singer (Sri Lanka) PLC Bank guarantees obtained Parent Company on behalf of the Company Balance at the beginning Revenue 1, Sales taxes Non-Trade Settlement Funds received for sales (1,110.3) (989.3) Expenses incurred (14.4) (12.9) Fixed Asset (Purchases)/Sales (0.4) - Transfer of Staff Loan Interest expense on Corporate Guarantee (0.6) (0.6) Interest Income/(expense) (1.0) 0.5 Balance at the end of the Period Brand Trading (Cambodia) Ltd Balance at the Beginning Affiliate Company Fund received for sales - (2.5) Balance at the end of the Period Parent /Subsiaris and Related Companies Company Name Principal Activity Director Singer (Sri Lanka) PLC The principal activities of the Company were marketing domestic and industrial sewing machines,appliances, furniture, agricultural Dr.S. Kelegama Mr. H.A.Pieris Mr.Ranil De Silva equipment, personal computers and Mr. G.J.Walker manufacturing furniture and agricultural equipment. Regnis Appliances (Pvt) Ltd. Manufacture and Assembly of washing machines and producing plastic components for Refrigerators Dr.S. Kelegama Mr. H.A.Pieris Mr. V.G.K. Vidyaratne Mr.K.D Kospelawatta Singer Industries (Ceylon) PLC Manfacture of Sewing Machines Dr.S. Kelegama Mr. H.A.Pieris Mr. G.J.Walker Mr. V.G.K. Vidyaratne Mr.Ranil De Silva Mr.K.D Kospelawatta Reality Lanka Ltd Investment on Properties Dr.S. Kelegama Mr. H.A.Pieris Mr. G.J.Walker Singer Business School (Pvt) Ltd Educational Services Mr. H.A.Pieris REGNIS (LANKA ) PLC 11

11 Notes to the Financial Statements 7 GENERAL 31-Mar Mar-16 Stated Capital Rs. 211,192,425/- Rs. 211,192,425/- No of shares - Ordinary Shares 11,267,863 11,267,863 Voting rights One vote per ordinary share One vote per ordinary share 7.1 Rights, Preference and Restrictions of Classes of Capital The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at a meeting of the Company. 8 TWENTY LARGEST SHAREHOLDERS AS AT 31ST MARCH Name No of Shares % 1 SINGER (SRI LANKA) PLC 6,568, MR. CHANNA NALIN RAJAHMONEY 500, BNYMSANV RE-MILLVILLE OPPORTUNITIES MASTER FUND, LP 289, WALDOCK MACKENZIE LIMITED/MR.SURANJAN PRAVEEN PERERA 145, UNION INVESTMENTS PRIVATE LTD 124, ALLIANCE FINANCE COMPANY PLC 100, WALDOCK MACKENZIE LIMITED/MR.P.S.R.CASIE CHITTY 90, MR. HAMISH WINSTON MCDONALD WOODWARD 87, Mr. AZEEZ JALALUDDIN RUMY 74, FREUDENBERG SHIPPING AGENCIES LIMITED 72, MR. MILINDA RANJAN PERERA 64, MR. CHANDIRAPAL CHANMUGAM 61, BANSEI SECURITIES CAPITAL (PVT) LTD/DAWI INVESTMENT TRUST (PVT) LTD 61, Mr. VIDYARATNE GANITAGURUGE KULATUNGE VIDYARATNE 60, Mrs. SONALI ROSHINI PERERA 58, MR. SUVIN WETTIMUNY 50, SEYLAN BANK PLC/ROMANI KUMAR EARDLEY PATRICK DE SILVA 50, TRADING PARTNERS (PVT) LTD 48, MRS. LILANI IRANDATHIE PERERA 47, MR. ABEYSIRI HEMAPALA MUNASINGHE 46, Total 8,602, DIRECTORS' AND CEO'S SHAREHOLDINGS AS AT 31-Mar Mar-16 Name of the Director No of Shares No of Shares Dr.S. Kelegama - - Mr.H.A.Pieris (CEO) 1,000 1,000 Mr.G.J.Walker - - Mr.V.G.K.Vidyaratne 60,155 60,155 Mr.Ranil De Silva - - Mr.K.D Kospelawatta - - Mr.N.B. Karunaratne (Appointed on ) - - ( Alternate Director to Mr.G.J.Walker) ** Mr. S H Goodman, who is the Chairman of Retail Holdings N.V, the ultimate holding company of Regnis (Lanka) PLC,indirectly holds 7.31% of Regnis (Lanka) PLC. ** Mr. G J Walker indirectly holds 2.21% of Regnis (Lanka) PLC. 10 No of share holders No of Shares % SHARES HELD BY PUBLIC AS AT 31ST MARCH ,638, % 12 INFORMATION OF THE COMPANY SECRETARY Eraj Fernando (ACA) Tel : REGNIS (LANKA ) PLC 12

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