STATEMENT OF FINANCIAL POSITION 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 Property, plant and equipment 2,452,725 1,768,311 1,057,490 805,337 Investment property 134,000 117,483 134,000 117,483 Investment in subsidiary 79-229,863 229,784 Non current assets 2,586,804 1,885,794 1,421,353 1,152,604 Inventories 1,605,099 812,332 107,774 100,977 Trade & other receivables 1,145,437 1,092,619 171,922 115,340 Amounts due from related parties 27,433 4,828 27,765 5,150 Cash & cash equivalents 65,633 75,202 2,818 14,860 Current assets 2,843,602 1,984,981 310,279 236,327 Total assets 5,430,406 3,870,775 1,731,632 1,388,931 EQUITY Stated capital 368,256 368,256 368,256 368,256 Reserve 616,134 760,262 524,928 669,356 Retained Earnings / (losses) 991,577 741,511 145,663 62,933 Equity attributable to owners of the company 1,975,967 1,870,029 1,038,847 1,100,545 Non controlling interest 167,647 144,320 - - Total equity 2,143,614 2,014,349 1,038,847 1,100,545 Liabilities Retirement benefits obligation 20,648 17,170 6,343 5,501 Loans from related companies - 21,797-21,797 Deferred tax liability 309,877 46,828 208,252 6,544 Long term borrowings payable after one year 590,259 301,553 150,490 28,562 Non current liabilities 920,784 387,348 365,085 62,404 Trade & other payables 959,762 431,583 96,833 87,791 Long term borrowings payable within one year 183,832 79,764 37,500 5,376 Short term loans 1,027,765 772,496 121,658 65,863 Amount due to related parties 4,620 4,958 4,620 4,958 Loans payable to related companies 21,797 30,835 21,797 30,835 Income tax payable 2,698 27,575-7,068 Bank overdrafts 165,534 121,867 45,292 24,091 Current liabilities 2,366,008 1,469,078 327,700 225,982 Total liabilities 3,286,792 1,856,426 692,785 288,386 Total equity and liabilities 5,430,406 3,870,775 1,731,632 1,388,931 Net asset value per share ( Rs.) 72.19 68.32 37.95 40.21 Signed on behalf of the Board of Directors of Swisstek (Ceylon) PLC. Director Director 23rd May 2018
STATEMENT OF COMPREHENSIVE INCOME Period ended 31.03.2018 31.03.2017 Variance 31.03.2018 31.03.2017 Variance Unaudited Audited % for the Unaudited Audited % for the Quarter 12 Months Quarter 12 Months Twelve Quarter 12 Months Quarter 12 Months Twelve Rs.'000 Rs.'000 Rs.'000 Rs.'000 months Rs.'000 Rs.'000 Rs.'000 Rs.'000 months Gross sales ( inclusive of tax ) 1,323,020 4,774,544 1,402,596 4,192,338 14 246,129 854,623 182,602 695,461 23 Sales ( net of tax) 1,129,146 4,077,367 1,042,420 3,433,741 19 211,319 736,784 156,976 607,948 21 Cost of sales (819,979) (2,888,763) (693,684) (2,334,629) (24) (161,964) (561,592) (118,757) (451,062) (25) Gross profit 309,167 1,188,604 348,736 1,099,112 8 49,355 175,192 38,219 156,886 12 Other operating income 38,110 92,421 29,363 78,186 18 90,598 141,905 48,402 110,153 29 Distribution expenses (99,461) (446,650) (110,982) (382,600) (17) (12,963) (48,194) (11,976) (44,074) (9) Administration expenses (54,569) (199,289) (53,687) (185,351) (8) (7,323) (34,571) (6,197) (30,061) (15) Profit from operating activities 193,247 635,086 213,430 609,347 4 119,667 234,332 68,448 192,904 21 Other operating expenses (5,036) (5,036) (1,001) (1,001) (403) (5,036) (5,036) (1,021) (1,021) (393) Net finance cost (39,082) (145,262) (34,006) (106,821) (36) (7,183) (28,641) (6,186) (18,813) (52) Profit before taxation 149,129 484,788 178,423 501,525 (3) 107,448 200,655 61,241 173,070 16 Taxation (31,096) (106,718) (42,636) (72,803) (47) (4,612) (21,740) (12,417) (29,785) 27 Profit for the period 118,033 378,070 135,787 428,722 (12) 102,836 178,915 48,824 143,285 25 Other Comprehensive income Gain on Revaluation of Land 56,289 56,289 - - - 51,285 51,285 - - - Defined benefit plan actuarial gain/(losses) (156) (156) 4,184 4,184 - (534) (534) 575 575 - Deferred tax on other comprehensive income (200,300) (200,300) (883) (883) - (195,562) (195,562) (161) (161) - for the period (144,167) (144,167) 3,301 3,301 - (144,811) (144,811) 414 414 - for the period (26,134) 233,903 139,088 432,023 (46) (41,975) 34,104 49,238 143,699 (76) Attributable to: Owners of the company 109,168 345,989 124,813 387,624 (11) 102,836 178,915 48,824 143,285 25 Non-controlling interest 8,865 32,081 10,974 41,098 (22) - - - - - Profit for the year 118,033 378,070 135,787 428,722 (12) 102,836 178,915 48,824 143,285 25 attributable to: Owners of the company (35,081) 201,741 127,750 390,560 (48) (41,975) 34,104 49,238 143,699 (76) Non-controlling interest 8,947 32,162 11,338 41,463 (22) - - - - - for the period (26,134) 233,903 139,088 432,023 (46) (41,975) 34,104 49,238 143,699 (76) Basic earnings per share (Rs.) 3.99 12.64 4.56 14.16 (11) 3.76 6.54 1.78 5.23 25
CASH FLOW STATEMENT Group Company Period ended 31.03.2018 31.03.2017 31.03.2018 31.03.2017 Unaudited Unaudited Unaudited Unaudited Rs.'000 Rs. 000 Rs.'000 Rs. 000 CASH FLOW FROM OPERATING ACTIVITIES Profit/(loss) before tax 484,788 501,525 200,655 173,070 Adjustments for; Depreciation 79,494 74,822 17,026 10,633 Provision for gratuity 5,305 4,793 1,305 1,270 Interest cost 149,407 105,439 33,779 19,997 Interest income (5,138) - (5,138) (1,184) Dividend income - - (55,053) (36,335) Exchange gain 993 1,382 - - (Profit)/loss on disposal of fixed assets - 967-987 (Gain)/ Loss on revaluation of investment property (16,517) (13,659) (16,517) (13,659) Provision for impairment of trade receivables (2,539) 189 152 189 Inventory provision 3,565 (835) 3,582 (835) Operating profit/(loss) before working capital changes 699,358 674,623 179,791 154,133 Changes in working capital (Increase)/Decrease in inventory (796,333) (410,632) (10,380) (58,992) (Increase)/Decrease in trade & other receivables (50,187) (469,656) (56,642) (3,999) (Increase)/Decrease in amounts due from/to related parties (22,944) (11,438) (22,954) (10,785) Increase/(Decrease) in trade & other payables 527,185 196,752 9,042 17,384 Cash generated from operations 357,079 337,419 98,857 133,603 Interest paid (149,407) (99,440) (33,779) (19,631) Tax paid (68,938) (31,046) (22,752) (27,007) Gratuity payments (1,984) (2,425) (998) (2,040) Net cash generated from/(used) in operating activities 136,750 204,508 41,328 84,925 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment (707,698) (362,627) (217,971) (73,141) Proceeds on disposal of property, plant & equipment - 1,567-1,522 Loans granted to related parties - - - 22,430 Dividend income - - 55,053 36,335 Net cash generated from/(used) in investing activities (707,698) (361,060) (162,918) (12,854) CASH FLOW FROM FINANCING ACTIVITIES Dividend paid (104,637) (74,261) (95,802) (68,430) Interest income from related party loan 5,138-5,138 1,184 Loan repayment for related party (30,835) (30,834) (30,835) (30,834) Obtaining/(repayment) of borrowings 648,044 230,354 209,848 28,735 Net cash generated from/(used) in financing activities 517,710 125,259 88,349 (69,345) Net Increase/ (Decrease) in cash and cash equivalents (53,238) (31,293) (33,241) 2,727 Cash & cash equivalents at the beginning of the year (46,665) (42,472) (9,231) - Cash & cash equivalents at the end of the year (Note a) (99,903) (73,765) (42,472) 2,727 Note a Analysis of cash and cash equivalent at the end of the year Cash at banks and cash in hand (265,437) 48,102 (87,764) 26,818 Bank Overdraft 165,534 (121,867) 45,292 (24,091) Cash and cash equivalent at the end of the year (99,903) (73,765) (42,472) 2,727
STATEMENT OF CHANGES IN EQUITY Group Stated Revaluation General Retained Shareholders' Non-controlling Total capital reserve reserve earnings funds Interest Equity Balance as at 1st April 2016 368,256 740,420 19,842 419,381 1,547,899 108,688 1,656,587 - Profit for the year - - - 387,624 387,624 41,098 428,722 - Defined benefit plan actuarial gains/(losses) - - - 3,729 3,729 455 4,184 - Deferred tax on other comprehensive income - - - (792) (792) (91) (883) - - - 2,937 2,937 364 3,301 - Dividend paid - - - (68,430) (68,430) (5,831) (74,261) Balance as at 31st March 2017 368,256 740,420 19,842 741,512 1,870,030 144,319 2,014,349 Balance as at 1st April 2017 368,256 740,420 19,842 741,511 1,870,029 144,320 2,014,349 - Profit for the year - - - 345,989 345,989 32,081 378,070 - Defined benefit plan actuarial gains/(losses) - - - (204) (204) 48 (156) - Gain on revaluation of land - 55,657 - - 55,657 632 56,289 - Deferred tax on other comprehensive income - (199,785) - 83 (199,702) (598) (200,300) - (144,128) - (121) (144,249) 82 (144,167) - Dividend paid - - - (95,802) (95,802) (8,835) (104,637) Balance as at 31st March 2018 368,256 596,292 19,842 991,577 1,975,967 167,648 2,143,615 Company Stated Revaluation General Retained Total capital reserve reserve earnings Equity Balance as at 1st April 2016 368,256 649,514 19,842 (12,336) 1,025,276 - Profit for the year - - - 143,286 143,286 - Defined benefit plan actuarial gains/(losses) - - - 575 575 - Deferred tax on other comprehensive income - - - (161) (161) - - - 414 414 - Dividend paid - - - (68,430) (68,430) Balance as at 31st March 2017 368,256 649,514 19,842 62,934 1,100,546 Balance as at 1st April 2017 368,256 649,514 19,842 62,933 1,100,545 - Profit for the year - - - 178,915 178,915 - Defined benefit plan actuarial gains/(losses) - - - (534) (534) - Gain on revaluation of land - 51,285 - - 51,285 - Deferred tax on other comprehensive income - (195,712) - 150 (195,562) - (144,427) - (384) (144,811) - Dividend paid - - - (95,802) (95,802) Balance as at 31st March 2018 368,256 505,087 19,842 145,662 1,038,847 Segmental Information For the year ended 31st March 2018 2017 Variance 2018 2017 Variance Rs.'000 Rs.'000 % Rs.'000 Rs.'000 % Turnover Flooring and tile accessories 736,784 450,972 63.4% 736,784 450,972 63.4% Aluminium products 3,340,583 2,982,769 12.0% - - 0.0% Consolidated turnover 4,077,367 3,433,741 18.7% 736,784 450,972 63.4% Profit/ (Loss) before tax Flooring and tile accessories 200,655 111,830 79.4% 200,655 111,830 79.4% Aluminium products 284,133 389,695-27.1% - - 0.0% Consolidated profit/ (Loss) before tax 484,788 501,525-3.3% 200,655 111,830 79.4%
Notes 1. These figures are provisional and subject to audit. 2. 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. 3. 27,372,000 ordinary shares are in issue and included under Stated Capital. 4. 5. 6. 7. 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. The subsidiary Swisstek Aluminium Ltd incurred Rs. 102.29 Mn. for the services rendered in improving the manufacturing processes. This service has been provided by related Company, Royal Ceramics Lanka PLC - Rs. 17.64 Mn., Lanka Walltiles PLC- Rs. 42.59 Mn. & Vallibel One PLC- Rs. 42.06 Mn. There have been no changes in contingent assets and contingent liabilities since 31st March 2017. There have been no material events occurring after the balance sheet date that require adjustment or disclosure in the financial statement. 8. Market prices recorded during the quarter ended 31st March 2018 2017 Variance Rs.cts Rs.cts Rs.cts % Highest market price per share 68.70 72.90 (4.20) (6) Lowest market price per share 55.00 62.00 (7.00) (11) Closing market price per share 59.30 65.60 (6.30) (10) 9. Directors' Holdings as at 31st March 2018. Shareholding Director's name No. of Shares % Mr. A M Weerasinghe (Chairman) 20,340 0.074 Mr. J A P M Jayasekera (Managing Director) 25,557 0.093 45,897 0.168 10. 20 Major Shareholders as at 31st March 2018. Shareholding Shareholder's Name No. of Shares % 1 Lanka Tiles PLC 13,085,180 47.805 2 Lanka Walltiles PLC 3,141,250 11.476 3 Royal Ceramics Lanka PLC 1,882,613 6.878 4 Deutsche Bank AG as Trustee to Candor Opportunities Fund 600,000 2.192 5 Seylan Bank PLC / Rizmy Ahamed Rishard 410,410 1.499 6 National Industries Group (Holdings) (S.A.K.) 392,107 1.433 7 Citizens Development Business Finance PLC 390,726 1.427 8 Sri Lanka Insurance Corporation Ltd-Life Fund 368,132 1.345 9 Mellon Bank N A - Commonwealth of Massachusetts 321,539 1.175 10 Rubber Investment Trust Limited 260,000 0.950 11 Arunodhaya (Pvt) Limited 250,000 0.913 12 Arunodhaya Industries (Private) Limited 250,000 0.913 13 Andysel Private Limited 250,000 0.913 14 Mr. M M Fuad 243,804 0.891 15 Elgin Investments Limited 200,094 0.731 16 Deutsche Bank AG as Trustee to Candor Growth Fund 190,356 0.695 17 Guardian Fund Management Limited/The Aitken Spence and Associated Companies Executive Staff Provident Fund 185,000 0.676 18 Mr. A S Ratnayake 178,426 0.652 19 Central Finance Company PLC - Account No. 05 178,319 0.651 20 Arunodhaya Investments (Private) Limited 170,000 0.621 Sub Total 22,947,956 83.837 Others 4,424,044 16.163 Grand Total 27,372,000 100.000 11. Percentage of public holding as at 31st March 2018 was 29.858%, comprising of 969 shareholders.