ROYAL CERAMICS LANKA PLC

Transcription

1 INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH JUNE 2017

2 STATEMENT OF FINANCIAL POSITION COMPANY GROUP AS AT Rs. 000's Rs.000's Rs. 000's Rs.000's ASSETS Non-Current Assets Property, Plant & Equipment 4,115,781 4,064,061 21,976,873 21,816,658 Consumable Biological Assets , ,534 Leasehold right over mining lands ,898 16,080 Investment Properties , ,024 Investments in Subsidiaries 5,157,343 5,157, Investments in Associate 3,162,937 3,162,937 6,003,908 5,849,225 Intangible Assets 183, ,756 1,216,628 1,219,371 Long term receivables ,285 27,285 Deferred Tax Assets 166, , , ,034 12,786,734 12,765,956 30,150,356 29,864,211 Current Assets Inventories 1,243,107 1,198,259 9,282,214 8,664,550 Trade and Other Receivables 665, ,409 2,793,413 2,966,579 Other Non Financial Assets 375, ,190 1,245,012 1,157,287 Other Financial Assets 58,568 43,981 58,568 43,981 Income Tax Recoverable 62,419 52,483 89,400 77,157 Cash and Cash Equivalents 180, ,093 1,418,656 1,887,792 2,585,108 2,402,416 14,887,263 14,797,346 Assets held for sale , ,815 2,585,108 2,402,416 15,002,654 14,935,161 Total Assets 15,371,843 15,168,372 45,153,010 44,799,373 EQUITY AND LIABILITIES Equity Stated Capital 1,368,673 1,368,673 1,368,673 1,368,673 Reserves 213, ,634 2,034,137 2,027,445 Retained Earnings 6,164,987 6,444,557 14,310,186 14,234,596 7,747,294 8,026,864 17,712,996 17,630,715 Non Controlling Interest - - 8,611,478 8,463,614 Total Equity 7,747,294 8,026,864 26,324,474 26,094,329 Non-Current Liabilities Interest Bearing Loans & Borrowings 3,230,400 3,307,021 6,154,222 6,247,866 Deferred Tax Liabilities - - 1,228,236 1,211,770 Retirement Benefit Liability 215, ,701 1,021, ,367 Deferred income & Capital grants , ,189 3,445,967 3,515,723 8,556,583 8,610,192 Current Liabilities Trade and Other Payables 2,057,259 1,815,045 2,023,113 2,299,244 Other Current Liabilities 535, , , ,049 Dividend Payable 487,515 45, , ,435 Income Tax Liabilities , ,258 Interest Bearing Loans & Borrowings 1,098,210 1,033,982 6,538,515 6,123,921 4,178,582 3,625,785 10,206,894 9,956,908 Liabilities directly associated with the assets held for sale , ,944 4,178,582 3,625,785 10,271,953 10,094,852 Total Equity and Liabilities 15,371,843 15,168,372 45,153,010 44,799,373 0 (0) 0 (0) Net Assets Per Share (Rs.) These financial statements are in compliance with the requirements of the Companies Act No 7 of Sgd. Head of Finance & Treasury The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the board by Sgd. Director Sgd. Director August 2, 2017

3 STATEMENT OF PROFIT OR LOSS COMPANY GROUP For the Period ended 30th June QUARTER QUARTER variance % QUARTER QUARTER variance % Rs. 000's Rs. 000's Rs. 000's Rs. 000's Gross Revenue 829, ,172 (8) 6,417,124 6,018,329 7 Net Revenue 730, ,861 (10) 5,770,513 5,472,250 5 Cost of Sales (387,064) (408,887) (5) (3,681,715) (3,491,749) 5 Gross Profit 343, ,974 (15) 2,088,798 1,980,501 5 Other Operating Income 349, ,855 (21) 56,721 31, Distribution Expenses (280,408) (257,352) 9 (884,669) (759,925) 16 Administrative Expenses (117,830) (138,162) (15) (356,101) (373,211) (5) Other Operating Expenses (12,036) (12,036) Finance Expenses (95,999) (85,268) 13 (296,229) (246,223) 20 Finance Income ,185 35,298 (9) Profit Before Tax 187, ,072 (49) 628, ,990 (6) Share of Associate Company's Profit , ,965 6 Net Profit Before Tax 187, ,072 (49) 876, ,955 (3) Tax (Expense)/Reversal (23,658) (24,338) 3 (196,980) (172,648) 14 Net Profit After Tax from Continuing Operations 163, ,734 (52) 679, ,307 (7) Loss after tax from discontinued operations - - (12,802) (17,004) (25) Net Profit for the period 163, ,734 (52) 666, ,303 (6) Attributable to Equity holders of the Parent 163, ,734 (52) 518, ,993 (17) Non Controlling Interest ,864 87, Net Profit for the period 163, ,734 (52) 666, ,303 (6) Basic Earnings Per Share (Rs.)

4 STATEMENT OF COMPREHENSIVE INCOME COMPANY GROUP For the Period ended 30th June variance QUARTER QUARTER % QUARTER QUARTER variance % Rs. 000's Rs. 000's Rs. 000's Rs. 000's Net Profit / (Loss) for the Period 163, ,734 (52) 666, ,303 (6) Net (loss)/gain on available-for-sale financial assets of Associate company 4,491 1, Exchange Differences on translation of foreign operations - - 2,201 (2,450) 190 Other Comprehensive Income net of Tax - - 6,692 (482) (1488) Total Comprehensive Income net of Tax 163, ,734 (52) 673, ,821 (5.4) Attributable to Equity holders of the Parent 163, ,734 (52) 525, ,511 (16) Non Controlling Interest ,864 87, Net Profit / (Loss) for the Period 163, ,734 (52) 673, ,821 (5)

5 STATEMENT OF CHANGES IN EQUITY - COMPANY Stated Revaluation Retained Capital Reserve Earnings Total Rs. 000's Rs. 000's Rs. 000's Rs. 000's Balance as at 1st April ,368, ,634 6,076,307 7,658,614 Net Profit for the Period , ,734 Total Comprehensive income , ,734 Final Dividends / (443,158) (443,158) Balance as at 30th June ,368, ,634 5,973,882 7,556,191 Balance as at 1st April ,368, ,634 6,444,557 8,026,864 Net Profit for the Period , ,588 Total Comprehensive income , ,588 Final Dividends / (443,158) (443,158) Balance as at 30th June ,368, ,634 6,164,987 7,747,294 STATEMENT OF CHANGES IN EQUITY - GROUP Attributable to owners of the parent Stated Revaluation Available for sale Foreign Currency Retained Non-Controlling Capital Reserve Reserve Translation Reserve Earnings Interest Total Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Balance as at 1st April ,368,673 1,367,854 7, ,885,271 7,828,991 22,458,794 Net Profit for the Period ,993 87, ,303 Other comprehensive income - - 1,968 (2,450) - - (482) Total Comprehensive income - - 1,968 (2,450) 624,993 87, ,821 Final Dividends / (443,158) - (443,158) Subsidiary Dividends to Minority Shareholders (13,796) (13,796) Balance as at 30th June ,368,673 1,367,854 9,672 (2,149) 12,067,106 7,902,505 22,713,661 Balance as at 1st April ,368,673 2,020,248 3,865 3,331 14,234,596 8,463,614 26,094,329 Net Profit for the Period , , ,611 Other comprehensive income - - 4,491 2, ,692 Total Comprehensive income - - 4,491 2, , , ,303 Final Dividends / (443,158) - (443,158) Balance as at 30th June ,368,673 2,020,248 8,356 5,532 14,310,186 8,611,478 26,324,474

6 CASH FLOW STATEMENT COMPANY GROUP For the Period ended 30th June Rs.000's Rs.000's Rs.000's Rs.000's Cash Flows From / (Used in) Operating Activities Profit before tax from continuing operations 187, , , ,955 Loss before tax from discontinued operations - - (12,802) (17,004) Profit before tax 187, , , ,951 Adjustments for Dividend Income (187,855) (243,873) (322) (41) Interest Income (279) (25) (32,185) (35,298) Depreciation of Property, Plant & Equipment 75,372 69, , ,456 Amortization of leasehold right over land - - 1,182 - (Profit)/Loss on Sale of Property, Plant & Equipment - (1,162) (64) (1,547) Finance Costs 95,999 85, , ,863 Write-down of inventories 1,557 3,032 1,536 6,583 Amortization of Intangible Assets 4,333 4,203 4,333 4,203 Unrealised (Gain)/loss on foreign exchange - - 6,317 6,364 Impairment of Assets held for sale ,867 Provision for bad debts (10) Deferred income / capital grants amortization - - (1,262) (1,174) Changing in Fair Value of Biological Assets - - (5,002) - Provision /(Reversal) for change in market value of the investments (14,586) (11,552) (14,586) (11,552) Profit Share of Investment in associate - - (247,724) (359,303) Provision for Defined Benefit Plans - Gratuity 6,867 7,231 39,102 41,974 Operating Profit/(Loss) before Working Capital Changes 168, ,875 1,258,090 1,181,977 (Increase)/ Decrease in Inventories (46,404) (17,763) (608,645) (287,461) (Increase)/ Decrease in Trade and Other Receivables (127,237) 57, ,303 94,670 (Increase)/ Decrease in Other Non Financial Assets (8,286) 21,313 20,852 (56,429) Increase/ (Decrease) in Trade and Other Payables 234, ,656 (296,052) (293,738) Increase/ (Decrease) in Other Current Liabilities (195,779) (354,062) (181,402) (297,619) Cash Generated from Operations 25, , , ,400 Finance Costs Paid (88,036) (79,411) (274,743) (227,731) Defined Benefit Plan Costs Paid - (2,140) (14,587) (28,100) Income Tax Paid (5,440) (3,542) (299,186) (94,542) Net Cash Flows From/(Used in) Operating Activities (68,290) 738,870 (209,371) (8,973) Cash Flows from / (Used in) Investing Activities Acquisition of Property, Plant & Equipment (127,092) (342,158) (623,699) (888,049) Acquisition of Plantation Assets - - (3,299) (6,424) (Acquisition) / disposal of leased hold right over mining land (8,000) Proceeds from Sale of Property, Plant & Equipment - 1,162 11,384 1,797 Acquisition of Intangible Assets (1,545) - (1,545) - Acquisition of Investment in subsidiary (59,999) Acquisition of Non Controlling Interest (259,307) Interest Received ,185 35,298 Dividends Received 90, Net Cash Flows from/(used in) Investing Activities (38,036) (340,930) (584,652) (1,184,644) Cash Flows from / (Used in) Financing Activities Proceeds From Interest Bearing Loans & Borrowings 302, ,373 2,994,084 2,208,811 Repayment of Interest Bearing Loans & Borrowings (302,273) (908,145) (2,564,166) (1,910,030) Capital Repayments under Finance Lease Liabilities (601) (550) (2,075) (2,018) Dividends Paid on Ordinary Shares (1,023) (60,114) (1,023) (60,114) Dividend paid to non controlling interest - - (14,627) (48,179) Capital grants received Net Cash Flows from/(used in) Financing Activities (989) (525,436) 412, ,462 Net Increase / (Decrease) in Cash and Cash Equivalents (107,315) (127,496) (381,371) (1,004,155) Net foreign exchange difference - - (1,141) (2,234) Cash and Cash Equivalents at the beginning of the period (59,087) (70,281) (121,902) 747,698 Cash and Cash Equivalents at the end of the period (166,402) (197,777) (504,415) (258,691)

7 NOTES TO THE FINANCIAL STATEMENTS ROYAL CERAMICS LANKA PLC 1. Corporate Information Royal Ceramics Lanka PLC ( the Company ) is a public limited liability company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The registered office of the Company is located at No.10, R.A. De Mel Mawatha, Colombo 03. The Consolidated Financial Statements of the company for the quarter ended 30th June 2017 comprise the Royal Ceramics Lanka PLC (Parent Company) and its subsidiaries (together referred as the Group ), namely Royal Ceramics Distributors (Private) Limited, Royal Porcelain (Private) Limited, Rocell Bathware Limited, Ever Paint and Chemical Industries (Private) Limited, Rocell Ceramics Limited, Rocell Pty Ltd-Australia, Nilano Garments (Private) Limited and Lanka Ceramic PLC and its subsidiaries. 2. Figures for the quarter ended 30th June 2017 are provisional and subject to audit. 3. Number of fully paid ordinary shares as at 30th June 2017 is 110,789,384 (30th June ,789,384). 4. 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 31st March Details of the Subsidiaries of the Company as at 30th June 2017, is as follows. Company Name Year of Incorporation Ownership (%) Royal Porcelain (Pvt) Ltd Rocell Bathware Ltd Royal Ceramics Distributors (Pvt) Ltd Ever Paint and Chemical Industries (Pvt) Ltd Lanka Ceramic PLC Rocell Ceramics Limited Rocell Pty Ltd - Australia Nilano Garments (Pvt) Ltd 2000/ / / / / / / / % 6. Basis of Preparation The Consolidated and separate Financial Statements have been prepared in accordance with Sri Lanka Accounting Standards comprising SLFRS and LKAS (hereafter SLFRS ) as issued by the Institute of Chartered Accountants of Sri Lanka. The Financial Statements of the Company and the Group have been prepared on a historical cost basis, except for lands, financial assets at fair value through profit or loss that have been valued at fair value. 7. Significant Accounting Policies The changes to accounting policies which have been disclosed in the company's Annual Report 2016/17, have been applied consistently to all periods presented in these condensed Financial Statements. The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be comparable with those of the current period. 8. Events Occurring After the Balance Sheet Date There have been no material events occuring after the balance sheet date that require adjustment or disclosure in the financial statement.

8 NOTES TO THE FINANCIAL STATEMENTS ROYAL CERAMICS LANKA PLC 09. Discontinued Operations During the year 2016/17, the Board of Directors took a decision to cease the operations of Ever Paint and Chemical Industries (Private) Limited ("EPCI") and to dispose of the assets thereof. EPCI is a fully owned subsidiary of Royal Ceramics Lanka PLC and it was engaged in the business of manufacturing and marketing of paints and allied products. With EPCI being classified as discontinued operations, the paint and allied products segment is no longer presented in the segment note. The results of EPCI for the period is presented below: Period ended Period ended Rs.000's Rs.000's Net Revenue ,684 Cost of Sales (4,819) (19,592) Gross Profit (4,412) 3,092 Other Operating Income (345) 94 Distribution Expenses (3,771) (10,359) Administrative Expenses (2,051) (3,828) Finance Expenses (2,223) (6,003) Loss for the period from discontinued operations (12,802) (17,004) The major classes of assets and liabilities of EPCI is classified as held for sale as at the end of the period: Rs.000's Assets Property, Plant & Equipment 72,493 Inventories 31,448 Trade and Other Receivables 11,284 Other Non Financial Assets - Cash and Cash Equivalents 165 Assets held for sale 115,391 Liabilities Trade and Other Payables (13,029) Interest Bearing Loans & Borrowings (49,888) Retirement Benefit Liability (2,141) Liabilities directly associated with the assets held for sale (65,059) Net Assets directly associated with disposal group 50,332 The net cash flows incurred by EPCI is as follows: Period ended Period ended Rs.000's Rs.000's Operating 68,366 2,268 Investing 2,758 (2,108) Financing (75,080) 891 Net cash (outflow)/inflow (3,956) 1, Significant fall in the company net profit for the first quarter is mainly resultant of the difference in the dividend received from its associate company LB Finance amounting to Rs. 146 Mn due to timing of the payments.

9 11. Segment Information ROYAL CERAMICS LANKA PLC Tiles & Associated Products Sanitoryware Plantation Aluminium For the Period ended 30th June Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Revenue Sales to External Customers 3,598,090 3,556, , , , , , ,522 Inter-Segment Sales - - 1, Total Revenue 3,598,090 3,556, , , , , , ,608 Results Gross Profit 1,603,025 1,542, , ,122 62,599 (27,470) 158, ,422 Other Operating Income 93, , ,431 6,489 1, Distribution Expenses (748,063) (660,419) (91,100) (91,772) - - (70,978) (56,130) Administrative Expenses (263,090) (288,951) (8,838) (11,247) (31,075) (23,358) (31,423) (31,768) Finance Costs (202,761) (177,930) (17,441) (14,579) (24,101) (18,208) (28,514) (13,748) Finance Income 33,668 36, Share of Associate Company's Profit Net Profit before Income Tax 504, ,184 64,234 78,002 13,912 (67,829) 28,221 57,542 Income Tax Expense (164,874) (143,688) (13,737) (17,286) 1,542 (349) (8,702) - Net Profit After Tax from Continuing Operations 339, ,496 50,497 60,716 15,454 (68,178) 19,519 57,542 As at 30th June Segment Assets 38,689,933 36,289,216 4,128,165 3,507,377 3,999,645 3,738,674 2,361,703 1,817,042 Total assets 38,689,933 36,289,216 4,128,165 3,507,377 3,999,645 3,738,674 2,361,703 1,817,042 Segment liabilities 15,443,867 15,109,086 1,144, ,001 2,276,300 2,180,728 1,198, ,260 Total Liabilities 15,443,867 15,109,086 1,144, ,001 2,276,300 2,180,728 1,198, ,260 Other Segment Information Total cost incurred during the period to acquire Property, Plant & Equipment 468, ,124 29,020 93,604 58,562 45,676 56,393 94,764 Depreciation & Amortisation 243, ,331 27,906 25,193 34,081 33,446 18,786 15,262 Provisions for retirement benefit liability 17,697 19, ,949 19,

10 11. Segment Information (Cont..) ROYAL CERAMICS LANKA PLC Packaging Finance Other Total For the Period ended 30th June Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Revenue Sales to External Customers 584, , ,580 4,885 5,770,513 5,472,250 Inter-Segment Sales 35,442 39, ,188 52, Total Revenue 619, , ,768 57,737 5,770,513 5,472,250 Results Gross Profit 74,619 84, ,944 28,256 2,088,798 1,980,501 Other Operating Income 24,977 14, ,251 9,271 56,721 31,550 Distribution Expenses (24,177) (21,291) - - (1,717) (5,027) (884,669) (759,925) Administrative Expenses (33,020) (31,661) - - (11,398) (10,434) (356,101) (373,211) Finance Costs (23,199) (16,434) - - (8,112) (8,070) (296,229) (246,223) Finance Income ,281 32,185 35,298 Share of Associate Company's Profit , ,773 2,574 (3,808) 247, ,965 Net Profit before Income Tax 19,200 29, , ,773 1,548 11, , ,955 Income Tax Expense (1,060) (7,027) - - (150) (1,821) (196,980) (172,648) Net Profit After Tax from Continuing Operations 18,140 22, , ,773 1,398 9, , ,307 As at 30th June Segment Assets 2,788,293 1,997,027 1,146,272 1,154,263 45,153,010 40,082,603 Total assets 2,788,293 1,997,027 1,146,272 1,154,263 45,153,010 40,082,603 Segment liabilities 1,469, , , ,841 18,828,536 17,368,941 Total Liabilities 1,469, , , ,841 18,828,536 17,368,941 Other Segment Information Total cost incurred during the period to acquire Property, Plant & Equipment 10,381 27, , ,049 Depreciation & Amortisation 20,145 15,652 3,544 2, , ,659 Provisions for retirement benefit liability 1,869 1, ,102 41,974

11 SHARE INFORMATION ROYAL CERAMICS LANKA PLC 1. Market prices of the share for the quarter ended 30th June Rs. Cts. Rs. Cts. Highest Lowest Closing Twenty Major Share Holders Number of Shares as at % of issued capital VALLIBEL ONE PLC 62,002, EMPLOYEES PROVIDENT FUND 15,277, HSBC INTL NOM LTD - BBH- GRANDEUR PEAK EMERGING MARKETS OPPORTUNITIES FUND 3,593, PERSHING LLC S/A AVERBACH GRAUSON & CO 3,257, HSBC INTL NOM LTD-MSCD-BRIARWOOD CAPITAL PARTNERS LP 1,972, NATIONAL SAVINGS BANK 1,834, HSBC INTL NOM LTD -BBH GRANDEUR PEAK GLOBAL REACH FUND 1,352, BNYMSANV RE - COMPASS ASIA PARTNERS, L.P. 1,100, EMPLOYEES TRUST FUND BOARD 828, MR. A.M. WEERASINGHE 749, AIA INSURANCE LANKA PLC A/C NO , MRS S N FERNANDO 550, MERCANTILE INVESTMENTS AND FINANCE PLC 550, AMAYA LEISURE PLC 521, MAS CAPITAL (PRIVATE) LIMITED 473, BANK OF CEYLON NO 2 A/C 469, MR D L B C PERERA & MRS I V KARIYAKARAWANA 411, MELLON BANK N.A-COMMONWEALTH OF MASSACHUSETTS 314, HSBC INTL NOM LTD-BBH-GRANDEUR PEAK GLOBAL MICRO CAP FUND 267, FIRST CAPITAL LIMITED 217, The percentage of shares held by the public as at 30th June % comprising of 10,797 shareholders 4. Directors' shareholding No of shares No of shares As at 30 June 2017 As at 30 June 2016 Mr. K D D Perera 200, ,772 Mr. A M Weerasinghe 749, ,928 Mr. T G Thoradeniya 185, ,680 (Alternate Director to Mr.Dhammika Perera) Mr. L T Samarawickrama 2,000 2,000 Mr. G A R D Prasanna 5,000 5,000 Mr. R N Asirwatham - - Mr. S H Amarasekera - - Ms.N R Thambiyah - - Mr. L N de S Wijeyeratne - - Mr. M Y A Perera 220 -

12 CORPORATE INFORMATION NAME OF THE COMPANY ROYAL CERAMICS LANKA PLC COMPANY REGISTRATION NO PQ 125 LEGAL FORM A Public Quoted Company with limited liability incorporated under the provisions of Companies Act No.7 of DATE OF INCORPORATION 29th August 1990 NATURE OF BUSINESS Manufacture and Sale of Porcelain & Ceramic Tiles HEAD OFFICE AND REGISTERED OFFICE 10, R A De Mel Mawatha, Colombo 3 Telephone Fax E- Mail ho.gen@rcl.lk Website BOARD OF DIRECTORS Mr. K D D Perera - Chairman Mr. A M Weerasinghe - Deputy Chairman Mr. M Y A Perera - Managing Director Mr. T G Thoradeniya - Director Marketing & Business Development Mr. L T Samarawickrema Mr. R N Asirwatham Mr. G A R D Prasanna Mr. S H Amarasekera Ms. N R Thambiayah Mr. L N D S Wijeyeratne SUBSIDIARY COMPANIES ASSOCIATED COMPANIES SECRETARIES AUDITORS BANKERS Royal Porcelain (Pvt) Ltd Rocell Bathware Ltd Royal Ceramics Distributors (Pvt) Ltd Ever Paint and Chemical Industries (Pvt) Ltd Rocell Ceramics Limited Rocell Pty Ltd - Australia Nilano Garments (Pvt) Ltd Lanka Ceramic PLC & its Subsidiaries Delmege Limited LB Finance PLC PW Corporate Secretarial (Pvt) Ltd No. 3/17,Kynsey Road, Colombo - 08 Telephone (94-11) Fax (94-11) Ernst & Young, Chartered Accountants 201, De Saram Place, P.O. Box 101, Colombo 10. Commercial Bank of Ceylon PLC Hatton National Bank PLC Seylan Bank PLC Bank of Ceylon Standard Chartered Bank Ltd Sampath Bank PLC PABC Bank PLC DFCC Bank PLC HSBC Ltd MCB Bank Ltd