" NIPPON CEMENT " TOKYO CEMENT COMPANY (LANKA) PLC. INTERIM FINANCIAL ACCOUNTS (Unaudited)

Transcription

1 IN TERMS OF RULE 7.4 OF THE COLOMBO STOCK EXCHANGE " NIPPON CEMENT " TOKYO CEMENT COMPANY (LANKA) PLC INTERIM FINANCIAL ACCOUNTS (Unaudited) FOR THE NINE MONTHS ENDED 31st DECEMBER 217

2 CORPORATE INFORMATION Page 1 of 11 NAME OF THE COMPANY Tokyo Cement Company (Lanka) PLC COMPANY REGISTRATIO PQ 115 LEGAL FORM A public Quoted Company with Limited Liability, Incorporated in Sri Lanka in 1982 and Listed on 1st January 1984 BOARD OF DIRECTORS Dr Harsha Cabral Mr S. R. Gnanam Mr W.C Fernando Mr A.S.G. Gnanam Mr E. J. Gnanam Mr R Seevaratnam Mr Ravi Dias Mr Asite Talwatte Mr Susumu Ando ( Appointed on 28th July 217) Mr Hiroki TSUKIGAWA ( Resigned on 28th July 217) Chairman and Non Executive Independent Director Managing Director Executive Director and Group General Manager Non Executive Director Non Executive Director Non Executive Independent Director Non Executive Independent Director Non Executive Independent Director Non Executive Director (Nominee Director of UBE Singapore Pte. Ltd ) Non Executive Director ( Nominee Director of Nippon Coke Engineering Company Limited) COMPANY SECRETARY Seccom (Private) Limited, (Company Secretaries) 1E 2/1, De Fonseka Place, Colombo 5 T Phone Fax E_Mail kmaahamed@hotmail.com HEAD OFFICE 469 1/1 Galle Road, Colombo 3 T Phone Fax Web Site SUBSIDIARY COMPANIES Tokyo Super Cement Company Lanka (Private) Limited Tokyo Cement Power (Lanka) (Private) Limited Tokyo Eastern Cement Company (Private) Limited Tokyo Super Aggregate (Private) Limited Tokyo Supermix (Private) Limited AUDITORS BDO Partners, (Chartered Accountants) Chittambalam A Gardiner Mawatha, Colombo 2 LEGAL ADVISORS Neelakandan & Neelakandan (Attorney at Law and Notaries Public)) M & N Building Level 5 2, Deal Place, Colombo 3

3 STATEMENT OF COMPREHENSIVE INCOME For the Nine Months Ended ember 217 Company Page 2 of 11 COMPANY (For the 3rd Quarter) COMPANY (For the 3rd Quarter) Nine 217 Nine 216 % Change +/ () Three 217 Three 216 % Change +/ () Continuing Operations Turnover Rs ' 15,3,455 Rs ' 18,62,58 15% Rs ' 4,61,73 Rs ' 6,42,211 28% Cost of Sales Gross Profit (12,66,46) 2,64,49 (14,74,19) 3,358,489 14% 21% (4,15,663) 595,67 (5,32,318) 1,99,893 25% 46% Other Income Distribution Expenses Administrative Expenses Profits from Operations Finance Income Finance Expenses Profit before Taxation 3,29,638 5,67,47 (1,311,334) (632,913) 3,725,8 12,465 (471,446) 3,266, ,734 4,36,223 (1,3,347) (587,551) 2,148,325 17,562 (43,549) 1,762, % 4% 1% 8% 73% 17% 85% 2,7,33 2,62,1 (374,827) (233,386) 1,993, (196,52) 1,798,11 9,785 1,19,678 (441,695) (219,827) 529,156 3,271 (13,173) 42, % 119% 15% 6% 277% 51% 347% Income Tax Expenses Profit for the Period Other Comprehensive Income Total Comprehensive Income (13,359) (334,685) 3,163,46 1,427,653 3,163,46 1,427,653 ======== ======== 69% 122% 122% 52,646 (123,) 1,85, ,254 1,85, ,254 ======== ======== 143% 563% 563% Basic Earnings Per Share ( Rs) % % The above figures are provisional and subject to Audit 14th February 218 COLOMBO Mr N C Liyanapathirana Group Chief Financial Officer

4 STATEMENT OF COMPREHENSIVE INCOME Page 3 of 11 For the Nine Months Ended ember 217 GROUP GROUP (For the 3rd Quarter) GROUP (For the 3rd Quarter) Nine 217 Nine 216 % Change +/ () Three 217 Three 216 % Change +/ () Continuing Operations Turnover Rs ' 26,78,365 Rs ' 26,668,853 % Rs ' 8,877,996 Rs ' 9,261,954 4% Cost of Sales Gross Profit (2,147,25) 6,561,115 (2,412,961) 6,255,892 1% 5% (6,854,52) 2,23,476 (7,215,974) 2,45,98 5% 1% Other Income 264,868 6,825, ,849 6,387,741 11% 7% 52 2,23,978 84,94 2,13,74 99% 5% Distribution Expenses Administrative Expenses Profits from Operations Finance Income Finance Expenses Profit before Taxation (2,456,687) (1,11,763) 3,357,533 47,564 (659,912) 2,745,185 (2,21,985) (929,999) 3,255,757 39,845 (391,462) 2,94,14 12% 9% 3% 69% 5% (851,272) (362,72) 81,4 4,447 (31,12) 513,331 (731,661) (356,96) 1,41,453 15,785 (126,37) 93,868 16% 2% 22% 138% 45% Income Tax Expenses Other Comprehensive Income (181,578) 2,563,67 (41,376) 2,493,764 56% 3% 23, ,248 (149,156) 781, % 31% Total Comprehensive Income 2,563,67 2,493,764 3% 537, ,712 31% Attributable to Equity of the Parent 2,555,96 2,49, ,52 779,2 Non Controlling Interest 7,71 2,781 2,728 2,71 Basic Earnings Per Share ( Rs) % % The above figures are provisional and subject to Audit Figures in bracket indicate deductions

5 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31st DECEMBER Page 4 of 11 Group Company st Mar st Mar 217 ASSETS Rs ' Rs ' Rs ' Rs ' Non Current Assets Property, Plant & Equipment Capital Work in Progress Investments in Subsidiary Intangible Assets Operating Lease Prepayment Total Non Current Assets Current Assets 22,657,39 2,11,222 59, ,587 25,16,598 13,147,42 7,62,546 68,436 58,58 2,876,964 9,784,627 1,622,164 7,521,69 13,22 432,587 19,374,189 7,884,758 1,91,17 7,496,99 18,751 58,58 16,549,25 Inventories Trade and Other Receivables Operating Lease PrePayments Amount Due from Related Parties Financial Investments Cash and Cash Equivalents Total Current Assets 2,45,192 4,639,979 4,726 6,484 59,626 7,611,7 2,1,61 3,25,99 4,726 6,238 2,523,941 7,562,496 1,482,176 2,9,255 4,726 18,36 15,4 4,717, ,166 1,934,376 4, ,834 1,194,352 4,448,454 TOTAL ASSETS Figures in brackets indicate deductions 32,771,65 === 28,439,46 === 24,92,16 == 2,997,659 ==

6 Statement of Financial Position of the Company as at ember 217 and the Consolidated Statement of Comprehensive Income for the Nine Months then ended are drawn up from the unaudited accounts of the Company, and they provide the information required by the Colombo Stock Exchange. The Board of Directors at its meeting held on 13th February 218, approved the accounts for circulation to the members of the Company in terms of Rule 7.4 of the Colombo Stock Exchange., 14th February 218 COLOMBO Sgd S R Gnanam Managing Director Sgd W C Fernando Executive Director

7 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31st DECEMBER 217 Page 5 of 11 Group Company st Mar st Mar 217 EQUITY AND LIABILITIES Capital and Reserves Rs ' Rs ' Rs ' Rs ' Stated Capital Retained Earnings Equity Attributable to Equity Holders of Parent Non Controlling Interest Total Equity 4,239,611 11,938,646 16,178,257 84,387 16,262,644 11,478,371 14,372,127 52,186 14,424,313 4,239,611 9,15,135 13,344,746 13,344,746 8,37,36 1,931,62 1,931,62 Non Current Liabilities Interest Bearing Borrowing Deferred Tax Liability Retirement Benefits Obligations CURRENT LIABILITIES 5,264,789 2,377,38 141,738 7,783,835 4,886,979 2,355,38 13,46 7,372,693 4,328,435 1,535,92 131,429 5,995,784 3,912,482 1,517,92 121,221 5,551,623 Trade and Other Payables Amount Due to Related Parties Short Term Borrowing Bank Overdraft Total Current Liabilities 1,47,564 6,63, ,75 8,725,126 2,275,188 3,822, ,817 6,642, ,766 2,678 3,733, ,95 4,751,576 1,553,423 24,321 2,54, ,757 4,514,974 TOTAL EQUITY AND LIABILITIES 32,771,65 === 28,439,46 == 24,92,16 == 2,997,659 == Net Assets Represented by Ordinary Shares Ordinary Shares 267,3, 133,65, 222,75, 111,375, 267,3, 133,65, 222,75, 111,375, Net Assets Per Share

8 CASH FLOW STATEMENT Cash Flow from Operating Activities GROUP Rs ' Rs ' Page 6 of 11 COMPANY Rs ' Rs ' Cash Generated from Operations Note A Interest Paid Income Tax Paid 1,435,78 (659,912) (573,27) 4,136,418 (391,462) (89,219) (821,935) (471,446) (522,41) 2,451,665 (43,549) (42,977) Net Cash from Operating Activities 22,769 3,655,737 (1,815,782) 2,5,139 Cash Flow from Investing Activities Purchase of Property, Plant and Equipment Sale Proceeds from Sale of PPE Lease Rental Paid in Advance Dividend Received Withdrawals / Investments of Short Term Investment Investment in Subsidiary (4,75,49) 271,563 (377,551) (246) 24,5 (3,168,367) (39) (3,287,419) 271,563 (377,551) 3,5,837 (25,51) (1,32,5) Net Cash Generated in Investing Activities (4,786,783) (3,168,676) (413,8) (1,32,5) Cash Flow from Financing Activities Receipt/(Repayment) of Term Loans ( net) Advance (to) / from Subsidiary Dividends Paid 3,177,587 1,284,21 (451,69) 1,68,77 74,831 59,87 (83,549) (451,69) Net Cash Generated /(used) in Financing Activities 2,427, , ,762 (745,531) Net Increase / (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Period (2,156,23) 1,979,124 1,32,13 147,932 (1,295,1) 977, ,558 97,398 Cash and Cash Equivalents at End of Period (177,79) 1,467,945 (317,55) 324,956 A Cash Generated from Operations Profit before Taxation and Finance Cost Adjustment for Depreciation Provision for Gratuity Dividend Income Profit on Disposal of PPE Amortization of Lease Gratuity Paid (Increase) / Decrease in Inventory (Increase) / Decrease in Receivables Increase / (Decrease) in Payables 3,45,97 785,58 16,69 (258,728) 12,581 (5,358) 3,955,34 (448,591) (1,613,989) (457,52) 3,295,62 812,965 2,75 9,794 (1,759) 4,118,677 64,216 (769,931) 147,456 3,738, ,84 15,483 (3,5,837) 9,93 (5,275) 1,336,569 (66,1) (965,879) (586,615) 2,165, ,61 1,376 6,36 (1,759) 2,716,61 42,94 (752,299) 84,459 1,435,78 4,136,418 (821,935) 2,451,665 B Cash and Cash Equivalents at End of Period Bank and Cash Balances Bank Overdraft 59,626 (686,75) 1,729,93 (261,148) 15,4 (467,95) 458,454 (133,498) (177,79) 1,467,945 (317,55) 324,956

9 STATEMENT OF CHANGES IN EQUITY Current Period Page 7 of 11 GROUP Attributable to Equity Shareholders Stated Capital Retained Total Non TOTAL and Earnings Controlling EQUITY Interest Rs ' Rs ' Rs ' Rs ' Rs ' Balance as at 1st April 216 8,528,259 11,422,15 49, 11,471,15 Profit for the Period 2,49,983 2,49,983 2,781 2,493,764 Dividend Paid ember 216 = (451,69) 1,568,173 (451,69) 13,461,929 = (451,69) 51,781 13,513,71 ========= == Balance as at 1st April ,478,371 14,372,127 52,186 14,424,313 Capitalization of Reserves 1,345,855 (1,345,855) Profit for the Period 2,555,96 2,555,96 7,71 2,563,67 Acquisition and Change in percentages in non controlling interest 24,5 24,5 Dividend Paid Balance as at ember 217 4,239,611 = 11,938,646 16,178,257 = 84,387 16,262,644 ========= == COMPANY Stated Capital and Rs ' Retained Earnings Rs ' TOTAL EQUITY Rs ' Balance as at 1st April 216 Profit for the Period Dividend Paid Balance as at ember 216 = 4,988,511 1,427,653 (451,69) 5,965,95 7,882,267 1,427,653 (451,69) 8,858,851 == Balance as at 1st April 217 Capitalization of Reserves Profit for the Period Dividend Paid Balance as at ember 217 1,345,855 4,239,611 = 8,37,36 (1,345,855) 3,163,46 9,15,135 1,931,62 3,163,46 13,344,746 ==

10 NOTES Page 8 of 11 1 Dividend Payments Date Paid Ord Share Ord Share Final Dividends 214/15 7th Sept 215 Rs 1/19 per share Rs 1/19 per share Final Dividends 215/16 15th Aug 216 Rs 1/35 per share Rs 1/35 per share Final Dividends 216/17 8th Aug 217 Rs 1/87 per share Rs 1/87 per share 2 Share Trading from 1 st October 217 to ember Transactions Shares Traded Value of Shares Traded (Rs) 1,128 11,33, ,659,413 2,139 7,739,195 47,92, ,767, ,276,28 2,189 9,717,748 54,257,48 Market Value (Rs) Stated Capital is Represented by Ordinary Shares Ordinary Shares 267,3, 133,65, 4 Deferred Liabilities Deferred Taxation is provided on the liability method in respect of the excess of capital allowances over historical cost depreciation and other material timing differences. It also includes sums provided for retirement benefit obligations. 5 Accounting Policies The Company has followed the same Accounting Policies as disclosed in the Annual Report for the financial year ended 31 st March 217 and are in compliance with LKAS 34 Interim Financial Reporting of the Company and Group. 6 Sale of Electricity to The National Grid The excess power generated from the Biomass power plant is sold to the National Grid. 7 Intangible Assets Comparative figures for the period ended ember, 216 have been restated to reflect the effect of goodwill with reference to the amalgamation of Tokyo Cement Colombo Terminal (Pvt) Ltd in accordance with the Statement of Recommended Practice for Merger Accounting for Common Control Combinations issued by the Institute of Chartered Accountants of Sri Lanka.

11 Page 9 of 11 8 Comparative Information The accounting policies have been consistently applied by the Company and are consistent with those of the previous year. The previous year's figures and phrases have been rearranged wherever necessary to conform to the current year's presentation. 9 Events After the Reporting Period No material events subsequent to the period have occurred where adjustments are necessary. There has been no significant change in the nature of the contingent liability and contingent asset which were disclosed in the previous annual report 1 Holding and Subsidiary Companies a/ Tokyo Cement Company (Lanka) PLC is the holding company. b/ Tokyo Super Cement Company Lanka (Pvt) Ltd ( tax holiday ending March 218) Tokyo Cement Power (Lanka) (Private) Limited Tokyo Eastern Cement Company (Private) Limited Tokyo Super Aggregate (Private) Limited Tokyo Supermix (Private) Limited 1 % 1 % 1 % 51 % 1 % The Group accounts for the period 217/18 includes the operating results of the subsidiary companies 11 Market Price per Share Highest for The Period Lowest for The Period Last Traded for The Period Public Shareholding The percentage of shares held by Public Public Shareholders 39.2 % 2, % 3,146 1 % 3,37 1 % 3, Inter Company Dividends Following Interim Dividends were received from Inter Companies for the period 217/18 Tokyo Super Cement Company Lanka (Pvt) Ltd Rs 3,5,837,177

12 Twenty Largest Shareholders as at ember ember 17 Page 1 of 11 ember 16 St. Anthony's Consolidated (Pvt) Ltd South Asian Investment (Pvt) Ltd Ube Singapore Holdings Pte. Ltd Marina Bay Holding And Investment Pte.Ltd. Hsbc Intl Nominees LtdJpmluT Rowe Price Funds Si Ordinary Shares 73,57,172 53,82,756 26,73, 16,38, 8,44,29 % Holding 27.5% 2.13% 1.% 6.% 3.1% Ordinary Shares 61,255,977 44,85,63 4,455, Not in Top 2 LIst Not in Top 2 LIst % Holding 27.5% 2.13% 2.% Capital City Holdings (Private) Limited J.B. Cocoshell (Pvt) Ltd The Ceylon Guardian Investment Trust Plc A/C # 2 Deutsche Bank AgNational Equity Fund Northern Trust Company S/A Apollo Asia Fund Limite 8,19,367 4,357,253 3,983,12 3,6, 3,245,63 3.% 1.63% 1.49% 1.35% 1.21% 6,682,86 Not in Top 2 LIst 5,36, 3,, Not in Top 2 LIst 3.% 2.41% 1.35% Pictet And Cie (Europe) S.A. S/A Lloyd George Indi The Ceylon Investment Plc A/C # 2 Deutsche Bank Ag As Trustee For Namal Acuity Value Hsbc International Nominees LtdMorgan Stanley And Thambi Lebbe Mohamed Imtiaz 3,14,88 3,47,374 1,8, 1,44, 1,372, % 1.14%.67%.54%.51% Not in Top 2 LIst 5,25, 1,5, Not in Top 2 LIst Not in Top 2 LIst 2.36%.67% Maria Tasneem Moosajee Seb AbTundra Frontier Opportunities Fund Mellon Bank N.AAcadian Frontier Markets Equity Fu Rubber Investment Trust Limited A/C # 1 Radhakrishnan Maheswaran 1,32, 1,315,592 1,222,487 1,175,227 1,96,94.49%.49%.46%.44%.41% Not in Top 2 LIst 1,96,327 Not in Top 2 LIst Not in Top 2 LIst 914,117.49%.41% TOTAL 218,276, % 134,364, % ember 17 ember 16 NON Ordinary Shares % Holding Ordinary Shares % Holding Bnymsanv ReButterfield Trust ( Bermuda ) Limited Northern Trust Company S/A Apollo Asia Fund Limite Hsbc Intl Nom LtdState Street Luxembourg C/O Ssbt Employees Provident Fund Pershing Llc S/A Averbach Grauson & Co. 16,258,24 1,561,789 6,827,366 5,643,524 5,341, % 7.9% 5.11% 4.22% 4.% 12,746,647 Not in Top 2 LIst 5,689,472 4,72,937 1,584, % 4.26% 3.52% 1.19% Deutsche Bank Ag As Trustee For Jb Vantage Value E Seb AbTundra Frontier Opportunities Fund Deutsche Bank AgNational Equity Fund Citibank Newyork S/A Norges Bank Account 2 Mas Capital (Private) Limited 4,914,66 3,96, 3,72, 3,716,917 3,466, % 2.96% 2.78% 2.78% 2.59% 4,95,55 2,1, 2,591,1 6,269,466 2,91, % 1.57% 1.94% 4.69% 2.18% Citibank London S/A Old Mutual Global Investors Se Phoenix Ventures Private Limited Deutsche Bank Ag As Trustee For Namal Acuity Value Seb AbFim Frontier Fund People's Leasing & Finance Plc/Hi Line Trading (Pv 2,949,11 2,827,5 2,782,635 2,181,61 1,852, % 2.12% 2.8% 1.63% 1.39% Not in Top 2 LIst Not in Top 2 LIst 2,218,863 Not in Top 2 LIst Not in Top 2 LIst 1.66% Seylan Bank Plc/Arrc Capital (Pvt) Ltd J.B. Cocoshell (Pvt) Ltd Union Assurance Plc/No1A/C Gf Capital Global Limited Dfcc Bank Plc A/C 1 1,839,934 1,837,11 1,729,956 1,476, 1,472, % 1.37% 1.29% 1.1% 1.1% Not in Top 2 LIst 11,996,765 1,658,15 Not in Top 2 LIst 1,227, % 1.24%.92% TOTAL 85,357, % 59,791, %

13 Page 11 of 11 Directors / CEO's Shareholding Ordinary Shares Shares Held Shares Held 31/12/17 31/12/16 Ordinary Shares Shares Held Shares Held 31/12/17 31/12/16 St Anthony's Consolidated (Private) Limited Gnanam A S G Gnanam S R Managing Director/CEO 73,57, ,255, Gnanam E J Ube Singapore Holdings Pte. Ltd 14 26,73, 12 4,455, Mr Susumu Ando (Non Executive and Nominee Director of UBE Singapore Pte. Ltd ) Mr W.C Fernando Executive Director and GGM 71,28 59,4 Independent Non Executive Directors Mr Ranjeevan Seevaratnam Dr Harsha Cabral Mr Ravi Dias Mr Asite Talwatte 1,237,214 65,711,13 71,28 59,4 Total Shares in Issue 267,3, 222,75, 133,65, 111,375, Chief Executive Officer's Shareholding Mr S R Gnanam, the Managing Director and Chief Executive Officer is also director and shareholder of the following companies Ordinary Shares Ordinary Shares Shares Held 31/12/17 Shares Held 31/12/16 Shares Held 31/12/17 Shares Held 31/12/16 St Anthony's Consolidated ( Pvt) Limited South Asian Investment (Pvt) Limited Capital City Holdings (Pvt) Limited St Anthony's Hardware (Pvt) Limited 73,57,172 53,82,756 8,44,29 545,292 61,255,977 44,85,63 6,682,86 454,41 TOTAL 135,917,51 113,243,823