Provisional Financial Statements For the Year ended 31st March 2018
STATEMENT OF FINANCIAL POSITION Group As at 31.03.2018 31.03.2017 31.03.2018 31.03.2017 Unaudited Audited Unaudited Audited Rs.'000 Rs.'000 Rs.'000 Rs.'000 ASSETS Non-current assets Property, plant and equipment 3,508,058 3,577,881 3,508,058 3,577,881 Investment Properties 223,800 223,800 - - Capital work-in-progress 347,518 30,909 347,518 30,909 Investment in subsidiary - - 6,242 - Investment in associate 933,633 881,052 933,633 881,052 Loans given to related companies 10,898 20,422 10,898 20,422 5,023,907 4,734,064 4,806,349 4,510,264 Current assets Inventories 1,945,726 1,434,412 1,945,726 1,434,412 Receivables & prepayments 849,506 591,611 849,493 618,695 Amounts due from related companies 492,155 421,897 665,503 569,092 Cash & cash equivalents 444,998 1,227,119 433,975 1,227,119 3,732,385 3,675,039 3,894,697 3,849,318 Total assets 8,756,292 8,409,103 8,701,046 8,359,582 EQUITY AND LIABILITIES Capital and reserves Stated capital (Note 3) 900,968 900,968 900,968 900,968 Reserves 6,018,806 5,742,660 5,969,364 5,693,558 Shareholders' funds 6,919,774 6,643,628 6,870,332 6,594,526 Non controlling interest 5,373 - - - Total Equity 6,925,147 6,643,628 6,870,332 6,594,526 Non-current liabilities Interest bearing liabilities 7,374 56,224 7,374 56,224 Deferred tax liabilities 634,246 443,787 634,246 443,787 Retirement benefit obligations 166,370 124,394 166,370 124,394 807,990 624,405 807,990 624,405 Current liabilities Trade & other payables 702,923 492,464 702,773 492,264 Amounts due to related companies 79,271 91,327 79,199 91,276 Current tax liabilities 46,932 68,726 46,724 68,558 Interest bearing liabilities 98,849 111,416 98,849 111,416 Bank overdrafts 95,179 377,137 95,179 377,137 1,023,155 1,141,070 1,022,724 1,140,651 Total liabilities 1,831,145 1,765,475 1,830,714 1,765,056 Total equity and liabilities 8,756,292 8,409,103 8,701,046 8,359,582 130.54 125.23 129.51 124.31 Director Director 23rd May 2018
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Group Unaudited Audited Unaudited Audited 31.03.2018 31.03.2017 31.03.2018 31.03.2017 Period ended Quarter Year Quarter Year Quarter Year Quarter Year Rs.'000 Rs.'000 Rs.'000 Rs.'000 Variance % Rs.'000 Rs.'000 Rs.'000 Rs.'000 Variance % Export sales 59,582 265,291 30,688 185,461 43 59,582 265,291 30,688 185,461 43 Local sales 1,782,232 6,735,652 1,405,664 5,661,044 19 1,782,232 6,735,652 1,405,664 5,661,044 19 Gross sales (inclusive of tax) 1,841,814 7,000,943 1,436,352 5,846,505 20 1,841,814 7,000,943 1,436,352 5,846,505 20 Sales (net of tax) 1,610,951 6,126,307 1,254,636 5,176,372 18 1,610,951 6,126,307 1,254,636 5,176,372 18 Cost of sales (1,040,296) (3,747,180) (695,058) (2,860,369) 31 (1,040,673) (3,747,180) (695,058) (2,860,369) 31 Gross profit 570,655 2,379,127 559,578 2,316,003 3 570,278 2,379,127 559,578 2,316,003 3 Other operating income 9,484 20,870 59,092 72,493 (71) 9,084 19,451 6,295 19,396 0 Distribution costs (300,375) (895,347) (186,141) (706,517) 27 (300,375) (895,347) (186,141) (706,517) 27 Administrative expenses (111,081) (405,816) (72,561) (381,726) 6 (110,571) (404,447) (72,283) (381,312) 6 Operating profit 168,682 1,098,834 359,968 1,300,253 (15) 168,416 1,098,784 307,449 1,247,570 (12) Net finance income 31,161 88,576 31,013 118,971 (26) 31,161 88,576 31,013 118,971 (26) Share of results of associate 52,182 165,383 58,341 185,284 (11) 52,182 165,383 58,341 185,284 (11) Profit before taxation 252,025 1,352,792 449,322 1,604,508 (16) 251,758 1,352,743 396,803 1,551,825 (13) Taxation (77,795) (348,795) (81,469) (359,170) (3) (77,721) (348,721) (81,301) (359,002) (3) Profit after tax 174,229 1,003,997 367,853 1,245,338 (19) 174,037 1,004,022 315,502 1,192,823 (16) Other comprehensive income Gains on revaluation of land and buildings Deferred tax component - gains on revaluation of land and buildings Exchange loss arising on translation of foreign operations 83,293 83,293 83,293 83,293 (191,634) (191,634) (191,634) (191,634) 44 (259) - - 100 - - - - 0 Remeasurement retirement benefit obligations-gratuity (28,361) (28,361) 18,898 18,898 (28,361) (28,361) 18,898 18,898 (250) Deferred tax component-remeasurement of retirement benefit obligation-gratuity 7,941 7,941 (5,183) (5,183) 7,941 7,941 (5,183) (5,183) (253) Share of other comprehensive income of assciate-net of tax (68,951) (68,951) 1,404 1,404 (68,951) (68,951) 1,404 1,404 (5011) Total comprehensive income for the year (23,438) 806,026 382,972 1,260,457 (36) (23,675) 806,310 330,621 1,207,942 (33) Profit attributable to: Equity holders of the parent 174,403 1,004,495 367,853 1,245,338 (19) 174,037 1,004,022 315,502 1,192,823 (16) Non Controlling Interest (173) (497) Profit for the year 174,229 1,003,997 367,853 1,245,338 (19) 174,037 1,004,022 315,502 1,192,823 (16) Total comprehensive income attributable to: Equity holders of the parent (23,286) 806,651 382,972 1,260,457 (36) (23,675) 806,310 330,621 1,207,942 (33) Non Controlling Interest (152) (624) Total comprehensive income (23,438) 806,026 382,972 1,260,457 (36) (23,675) 806,310 330,621 1,207,942 (33) Earnings per ordinary share-basic (Rs) 3.28 18.93 6.93 23.47 (19) 3.28 18.93 5.95 22.48 (16)
CASH FLOW STATEMENT Group Period ended 31.03.2018 31.03.2017 31.03.2018 31.03.2017 Unaudited Audited Unaudited Audited Rs.'000 Rs.'000 Rs.'000 Rs.'000 CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES Profit before income tax 1,352,792 1,604,508 1,352,743 1,551,825 Adjustments for: Depreciation 236,236 195,425 236,236 195,425 (Gain)/Loss on disposal of fixed assets (4) 6,758 (4) 6,758 Net Finance income (88,576) (119,931) (88,576) (119,931) Provision for retirement benefit obligations 26,000 21,454 26,000 21,454 Net fair value gain recognised in profit or loss - (52,497) - - Share of results before tax of associate (165,383) (185,284) (165,383) (185,284) Operating profit (loss) before working capital changes 1,361,066 1,470,433 1,361,017 1,470,247 Changes in working capital (Increase)/Decrease in inventories (511,314) (502,156) (511,314) (502,156) (Increase)/Decrease in trade and other receivables (230,811) (90,353) (230,798) (90,352) (Increase)/Decrease in due from related parties (113,724) (112,091) (112,599) (111,655) Increase/(Decrease) in trade & other payables 210,580 48,369 210,509 48,169 Increase/(Decrease) in due to related parties (12,021) (45,344) (12,077) (45,395) Cash generated from operations 703,776 768,858 704,738 768,858 Net Finance income 88,576 119,931 88,576 119,931 Retirement benefit costs paid (12,385) (7,235) (12,385) (7,235) Income tax paid (363,788) (582,042) (363,788) (582,042) Net cash flows from/(used in) operating activities 416,179 299,512 417,141 299,512 CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Acquisition of property,plant,equipment (64,465) (369,454) (64,465) (369,454) Dividend received 43,851 31,179 43,851 31,179 Expenditure incurred on capital work in progress (337,709) (43,202) (337,709) (43,202) Loans granted/ repayment to related companies 25,709 30,834 25,709 30,834 Investment in subsidiary - - (6,242) - Proceeds from disposal of fixed assets 2,449 531 2,449 531 Net cash flows from /(used in) investing activities (330,165) (350,112) (336,407) (350,112) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Dividend paid (530,504) (397,878) (530,504) (397,878) Proceeds from borrowings 100,000-100,000 Repayment of borrowings (161,412) (231,317) (161,416) (231,317) Proceeds on issue of shares to minority shareholders 5,997 - - - Net cash flows from /(used in) financing activities (585,919) (629,195) (591,920) (629,195) Net Increase/(Decrease) in cash and cash equivalents (499,904) (679,795) (511,186) (679,795) Movement in cash and cash equivalents (259) Cash cash equivalents at the beginning of the period 849,982 1,529,777 849,982 1,529,777 Cash cash equivalents at the end of the period 349,819 849,982 338,796 849,982
STATEMENT OF CHANGES IN EQUITY Group Stated Capital Reserve Revaluation Exchange Retained Total Non Controlling Shareholders' Reserve Reserve Earnings Reserves Interest funds Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance at 1st April 2016 900,968 460,151 838,856-3,581,074 4,880,081-5,781,049 Net profit for the period - - - - 1,245,338 1,245,338-1,245,338 Other comprehensive income - - - - 15,119 15,119-15,119 Dividend for 2016/2017 (Interim 1) - - - - (132,626) (132,626) - (132,626) Dividend for 2016/2017 (Interim 2) - - - - (265,252) (265,252) - (265,252) Balance as at 31st March 2017 900,968 460,151 838,856-4,443,653 5,742,660-6,643,628 Balance at 1st April 2017 900,968 460,151 838,856-4,443,653 5,742,660-6,643,628 Net profit for the period - - - - 1,004,495 1,004,495 (497) 1,003,998 Other comprehensive income - - (108,341) (132) (89,371) (197,844) (127) (197,971) Dividend for 2017/2018 (Interim 1) - - - - (212,202) (212,202) - (212,202) Dividend for 2017/2018 (Interim 2) - (318,302) (318,302) (318,302) Shares issued to minority shareholders - - - - - - 5,997 5,997 Balance as at 31st March 2018 900,968 460,151 730,515 (132) 4,828,273 6,018,806 5,373 6,925,147. Stated Capital Amalgamation Reserve Revaluation Exchange Retained Total Non Controlling Shareholders' Reserve Reserve Earnings Reserves Interest funds Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance at 1st April 2016 900,968 460,151 838,856-3,584,487 4,883,494-5,784,462 Net profit for the period - - - - 1,192,823 1,192,823-1,192,823 Other comprehensive income - - - - 15,119 15,119-15,119 Dividend for 2016/2017 (Interim 1) - - - - (132,626) (132,626) - (132,626) Dividend for 2016/2017 (Interim 2) - - - - (265,252) (265,252) - (265,252) Balance as at 31st March 2017 900,968 460,151 838,856-4,394,551 5,693,558-6,594,526 Balance at 1st April 2017 900,968 460,151 838,856-4,394,551 5,693,558-6,594,526 Net profit for the period - - - - 1,004,022 1,004,022-1,004,022 Other comprehensive income - - (108,341) - (89,371) (197,712) - (197,712) Dividend for 2017/2018 (Interim 1) - - - - (212,202) (212,202) - (212,202) Dividend for 2017/2018 (Interim 2) - (318,302) (318,302) (318,302) Balance as at 31st March 2018 900,968 460,151 730,515-4,778,698 5,969,364-6,870,332
Notes 1 2 3 4 5 6 7 8 9 10 The above figures are provisional and subject to audit. The accounting policies followed in the preparation of interim financial statements are consistent with those followed in the preparation of financial statements for the year ended 31st March 2017 and are in compliance with LKAS 34 - Interim Financial Reporting. Total number of shares in issue of the company as at 31st March 2018 is 53,050,410. There have been no changes in contingent assets and contingent liabilities since 31 st March 2017. The presentation and classification of figures for corresponding period of the previous year have been amended, where relevant, to be comparable with those for the current year. incurred Rs.95.02 Mn during the year for the services rendered in improving the manufacturing processes. This service has been provided by related Companies of Royal Ceramics Lanka PLC and Vallibal One PLC. An Interim dividend of Rs.4.00 per share for the financial year 2017/18 was paid on 13th September 2017 and Final dividend of Rs.6.00 per share for the financial year 2017/18 was paid on 26th March 2018. During July 2017, invested for 51% shareholding in the subsidiary, Lankatiles Private Limited which is incorporated in Bengaluru,India. intends to distribute locally manufactured tiles in the Indian market through this company. During February 2018, invested for 100% shareholding in the subsidiary, LTL Development (Pvt) Limited which is incorporated in Sri Lanka. is the property holding and developing company. No events have occurred since the date of the financial position which would require adjustment to or disclosure in the interim financial statements. 11 Market prices recorded during the quarter ended 31st March 2017/18 2016/17 Variance Rs.cts Rs.cts Rs.cts % Highest market price per share 113.80 105.00 8.80 8.38 Lowest market price per share 99.50 95.00 4.50 4.74 Closing market price per share 99.70 102.00 (2.30) (2.25) 12 Director's holding in shares as at 31st March 2018 Director's name Shareholding Number % Mr. A M Weerasinghe 34,697 0.0654 Ms. A M L Page 2,500 0.0047 13 20 Major Shareholders as at 31st March 2018 Shareholder's name Shareholding Number % 1 Lanka Walltiles PLC 36,189,195 68.217 Employees Provident Fund 4,968,313 9.365 3 BNYM SA/NV-Frontaura Global Frontier Fund Llc 3,505,980 6.609 4 Royal Ceramics Lanka PLC 1,388,481 2.617 5 Caceis Bank Luxemburg S/A Barca Global Master Fund LP 1,353,338 2.551 6 Bank of Ceylon No. 1 Account 973,200 1.834 7 Mr. K R Kamon 537,628 1.013 8 Mr. A A Page 433,939 0.818 9 Aruna Enterprises (Pvt) Limited 128,500 0.242 10 Mr.S.M.Fernando 126,446 0.238 11 Mrs. A A Merchant 125,000 0.236 12 Deutsche Bank AG-Comtrust equity fund 111,500 0.210 14 Dr A C Visvalingam 108,143 0.204 13 Mr.Y.H Abdulhussein 98,833 0.186 15 Pinnacle trust (Pvt) Ltd 92,038 0.173 16 Sampath Bank Plc /Dr Semthilverl 90,600 0.171 17 Seylan Bank Plc /China Nalin Rajahmoney 72,104 0.136 18 Mrs B C Sansoni 62,495 0.118 19 Mr.M S Fernando 49,105 0.093 20 Saboor Chatoor (Pvt) Ltd 42,200 0.080 Sub Total 50,457,038 95.111 Others 2,593,372 4.889 Grand Total 53,050,410 100.000 14 Percentage of public holding as at 31st March 2018 was 28.277% comprising of 1,729 shareholders.