Ceylon Beverage Holdings PLC Interim Condensed Financial Statements for the First Quarter ended 30th June 2013
BOARD OF DIRECTORS Mr. L.C.R. de C. Wijetunge (Chairman) Mr. H. Selvanathan (Deputy Chairman) Mr. M. Selvanathan (Director / Alternate Director to Mr. H. Selvanathan) Mr. S. K. Shah (Chief Executive Officer) Mr. D.C.R. Gunawardena Mr. G.J. Fewkes
REVIEW A turnover of Rs.6.2 billion was recorded for the quarter ended 30th June 2013 compared to Rs.5.3 billion for the same period last year, an improvement of 17%, driven mainly by an Excise Duty increase of Rs.10/- per litre which came in to effect in October 2012. However, notwithstanding the improvement in turnover, pre-tax profit declined by 18% to Rs.390.3 million from Rs 473.9 million in the comparative period due to cost increases in input materials & operational areas. The total contribution to Government coffers by way of taxes paid by the Group for the 3 months ended 30th June 2013 amounted to Rs.3,434.2 million compared to Rs.3,150.3 million paid in the corresponding period last year - an increase of 9%. During the quarter the Group successfully raised Rs.3 billion in debentures through a public issue to fund the ongoing modernization of the plant & other infrastructure. The debenture issue was meant to be kept open between the periods 11th to the 28th of June 2013. However, the issue was oversubscribed on the first day and was therefore closed within two days of its opening. The Group acknowledges with gratitude the trust & confidence placed in it by investors who subscribed to the debenture issue. Work on the ongoing modernization of the plant & other infrastructure is progressing as planned. Once completed, the production facility will include a number of technological innovations that have taken place within the industry since the time the brewery was originally set up in 1998. The resultant improvements in productivity & scale will place the Group on a strong footing to face the challenges in the years ahead. With effect from 31st July 2013, Excise Duties applicable on beer was increased. In response, the Group was compelled to raise prices of most of its products to recover the cost of increased taxes. Beer being a non essential, its consumption is dependent on the discretionary spending power of consumers. The impact of the price increases on the demand for the Group s products will be seen in the months ahead.
CONDENSED STATEMENT OF FINANCIAL POSITION In Rs.'000s Company Group As at 30th June 30th June 31st March 30th June 30th June 31st March 2013 2012 2013 2013 2012 2013 (Audited) (Audited) ASSETS Non-Current Assets Property, plant & equipment 124,931 125,403 125,065 9,055,288 5,626,042 8,322,402 Intangible assets - - - 47,793 44,817 49,970 Investments in subsidiaries 1,528,291 1,478,536 1,518,357 - - - Amounts due from related companies 366,422 239,820 327,782 - - - Total Non-Current Assets 2,019,644 1,843,759 1,971,204 9,103,081 5,670,859 8,372,372 Current Assets Inventories - - - 2,123,856 1,430,399 2,406,716 Trade & other receivables 15,122 3,475 11,586 2,756,357 1,571,472 3,101,079 Amounts due from related companies 23,917 8,339 23,288 2,081 - - Short term investments - - - 5,500,000-1,578,014 Cash and cash equivalents 2,337 9,189 1,131 4,874,877 3,615,866 2,158,287 Total Current Assets 41,376 21,003 36,005 15,257,171 6,617,737 9,244,096 Total Assets 2,061,020 1,864,762 2,007,209 24,360,252 12,288,596 17,616,468 EQUITY AND LIABILITIES Equity Stated capital 533,384 533,384 533,384 533,384 533,384 533,384 Capital reserves 126,414 126,414 126,414 492,331 492,563 492,331 Revenue reserves 870,770 818,088 852,601 2,000,049 1,675,065 2,044,186 Equity Attributable To Equity Holders of the Company 1,530,568 1,477,886 1,512,399 3,025,764 2,701,012 3,069,901 Non Controlling interest - - - 2,806,706 2,472,333 2,822,132 Total Equity 1,530,568 1,477,886 1,512,399 5,832,470 5,173,345 5,892,033 Non Current Liabilities Debentures - - - 3,000,000 - - Loans and borrowings 15,000 15,000 15,000 2,297,687 2,080,820 2,738,907 Employee benefits - - 79,246 73,113 79,694 Deferred taxation - - 848,109 585,505 789,578 Total Non- Current Liabilities 15,000 15,000 15,000 6,225,042 2,739,438 3,608,179 Current Liabilities Trade and other payables 9,148 7,388 9,812 646,712 639,214 800,312 Amounts due to related companies - - - 22,468 48,186 40,613 Refundable deposits - - - 985,818 902,513 980,333 Current tax liabilities 14,559 13,329 11,430 999,737 1,201,379 1,026,651 Loans and borrowings 22,500 52,500 30,000 3,717,707 392,471 1,394,077 Bank overdraft 469,245 298,659 428,568 5,930,298 1,192,050 3,874,270 Total Current Liabilities 515,452 371,876 479,810 12,302,740 4,375,813 8,116,256 Total Liabilities 530,452 386,876 494,810 18,527,782 7,115,251 11,724,435 Total Equity and Liabilities 2,061,020 1,864,762 2,007,209 24,360,252 12,288,596 17,616,468 Net assets per ordinary share (Rs.) 72.93 70.42 72.06 144.17 128.69 146.27 I certify that the above Financial Statements comply with the requirements of Companies Act No.07 of 2007. (Sgd.) D.R.P. Goonetilleke Head of Finance The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Approved and signed on behalf of the Managers Approved and signed on behalf of the Board (Sgd.) (Sgd.) (Sgd.) A. Weeratunge M. Selvanathan Suresh K. Shah Director Director Director Carsons Management Services (Private) Limited 05th August 2013
CONDENSED INCOME STATEMENT - COMPANY In Rs.'000s Quarter Ended Year Ended 30.06.2013 30.06.2012 Change 31.03.2013 % (Audited) Revenue 183,198 181,596 1 278,905 Cost of Sales - - - - Gross Profit 183,198 181,596 1 278,905 Administrative Expenses (3,493) (3,832) (9) (17,232) Profit from Operations 179,705 177,764 1 261,673 Finance Income 7,395 4,701 57 17,566 Finance Costs (18,584) (13,311) 40 (62,477) Net Finance Costs (11,189) (8,610) 30 (44,911) Profit Before Taxation 168,516 169,154 (0) 216,762 Income Tax Expenses (3,430) (4,927) (30) (18,022) Profit After Taxation 165,086 164,227 1 198,740 Other Comprehensive Income - - - - Total Comprehensive Income 165,086 164,227 1 198,740 Earnings per Ordinary Share (Rs.) 7.87 7.82 9.47 Dividend per Ordinary Share (Rs.) 7.00 6.00 6.00 Figures in brackets indicate deductions.
CONDENSED INCOME STATEMENT - GROUP In Rs.'000s Quarter Ended Year Ended 30.06.2013 30.06.2012 Change 31.03.2013 % (Audited) Revenue 6,214,543 5,314,564 17 22,983,570 Cost of Sales (4,754,499) (4,017,015) 18 (17,695,809) Gross Profit 1,460,044 1,297,549 13 5,287,761 Other Income 11,398 1,033 1,003 59,640 1,471,442 1,298,582 13 5,347,401 Distribution Expenses (705,255) (551,368) 28 (2,700,177) Administrative Expenses (258,088) (183,057) 41 (876,898) Other Expenses (38,909) (43,791) (11) (166,338) Profit from Operations 469,190 520,366 (10) 1,603,988 Finance Income 149,279 120,927 23 534,212 Finance Costs (228,120) (167,352) 36 (548,166) Net Finance Income/(Costs) (78,841) (46,425) 70 (13,954) Profit Before Taxation 390,349 473,941 (18) 1,590,034 Income Tax Expenses (150,195) (173,141) (13) (570,620) Profit After Taxation 240,154 300,800 (20) 1,019,414 Profit Attributable to - Equity Holders of the Company 102,780 151,143 (32) 519,994 - Minority Shareholders 137,374 149,657 (8) 499,420 Profit Available for Appropriation 240,154 300,800 (20) 1,019,414 Other Comprehensive Income - - - - Total Comprehensive Income 240,154 300,800 (20) 1,019,414 Earnings per Ordinary Share (Rs.) 4.90 7.20 24.78 Dividend per Ordinary Share (Rs.) 7.00 6.00 6.00 Figures in brackets indicate deductions.
STATEMENTS OF CHANGES IN EQUITY In Rs.'000s Attributable to Equity Holders of the Parent Non- Stated Capital Revaluation Reserve Revenue Reserve Retained Profits Total COMPANY Balance as at 1st April 2012 533,384 120,638 5,776 184,174 595,616 1,439,588-1,439,588 Profit for the Period - - - - 164,227 164,227-164,227 Other comprehensive income - - - - - - - - Total Comprehensive income 533,384 120,638 5,776 184,174 759,843 1,603,815-1,603,815 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends - - - - (125,929) (125,929) - (125,929) Balance as at 30th June 2012 533,384 120,638 5,776 184,174 633,914 1,477,886-1,477,886 General Capital Reserve Controlling Interests Total Equity Balance as at 1st April 2012 533,384 120,638 5,776 184,174 595,616 1,439,588-1,439,588 Profit for the period - - - - 198,740 198,740-198,740 Other comprehensive income - - - - - - - Total Comprehensive income 533,384 120,638 5,776 184,174 794,356 1,638,328-1,638,328 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends - - - - (125,929) (125,929) - (125,929) Balance as at 31st March 2013 (Audited) 533,384 120,638 5,776 184,174 668,427 1,512,399-1,512,399 Balance as at 1st April 2013 533,384 120,638 5,776 184,174 668,427 1,512,399-1,512,399 Profit for the period - - - - 165,086 165,086-165,086 Other comprehensive income - - - - - - - Total Comprehensive income 533,384 120,638 5,776 184,174 833,513 1,677,485-1,677,485 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends - - - - (146,917) (146,917) - (146,917) Balance as at 30th June 2013 533,384 120,638 5,776 184,174 686,596 1,530,568-1,530,568 GROUP Balance as at 1st April 2012 533,384 486,555 5,776 184,174 1,478,897 2,688,786 2,487,346 5,176,132 Profit for the Period 151,143 151,143 149,657 300,800 Other comprehensive income - - - - - - - - Total Comprehensive income 533,384 486,555 5,776 184,174 1,630,040 2,839,929 2,637,003 5,476,932 Transactions with owners, recorded directly in equity contribution by and distribution to owners Adjustments on returnable containers - - - - (13,121) (13,121) (11,991) (25,112) Adjustment for deferred tax liability - 232 - - - 232 212 444 Dividends - - - - (125,929) (125,929) (152,800) (278,729) Inter company unrealized profit - - - - (99) (99) (91) (190) Balance as at 30th June 2012 533,384 486,787 5,776 184,174 1,490,891 2,701,012 2,472,333 5,173,345 Balance as at 1st April 2012 533,384 486,555 5,776 184,174 1,478,897 2,688,786 2,487,346 5,176,132 Profit for the Period - - - - 519,994 519,994 499,420 1,019,414 Other comprehensive income - - - - - - - - Total Comprehensive income 533,384 486,555 5,776 184,174 1,998,891 3,208,780 2,986,766 6,195,546 Transactions with owners, recorded directly in equity contribution by and distribution to owners Adjustments on returnable containers - - - - (13,121) (13,121) (11,991) (25,112) Dividends - - - - (125,929) (125,929) (152,800) (278,729) Inter company unrealized profit - - - - 171 171 157 328 Balance as at 31st March 2013 (Audited) 533,384 486,555 5,776 184,174 1,860,012 3,069,901 2,822,132 5,892,033 Balance as at 1st April 2013 533,384 486,555 5,776 184,174 1,860,012 3,069,901 2,822,132 5,892,033 Profit for the Period 102,780 102,780 137,374 240,154 Other comprehensive income - - - - - - - - Total Comprehensive income 533,384 486,555 5,776 184,174 1,962,792 3,172,681 2,959,506 6,132,187 Transactions with owners, recorded directly in equity contribution by and distribution to owners Dividends - - - - (146,917) (146,917) (152,800) (299,717) Balance as at 30th June 2013 533,384 486,555 5,776 184,174 1,815,875 3,025,764 2,806,706 5,832,470
STATEMENTS OF CASH FLOW In Rs.'000s Company Group Quarter Ended 30.06.2013 30.06.2012 31.03.2013 30.06.2013 30.06.2012 31.03.2013 (Audited) (Audited) Net cash generated from/(used in) operating activities 154,178 149,746 150,170 1,013,284 2,435 (1,950,888) Net cash (used in)/generated from investing activities (41,179) (50,141) (165,124) 574,928 (625,934) (4,538,383) Net cash (used in)/ generated from financing activities (152,470) (131,736) (155,143) 4,572,350 642,169 2,368,142 Net (decrease)/increase in cash & cash equivalents (39,471) (32,131) (170,097) 6,160,562 18,670 (4,121,129) Cash & cash equivalents at the beginning of the period (427,437) (257,339) (257,340) (1,715,983) 2,405,146 2,405,146 Cash & cash equivalents at the end of the period (466,908) (289,470) (427,437) 4,444,579 2,423,816 (1,715,983) Analysis of cash and cash equivalents Cash and cash equivalents 2,337 9,189 1,131 4,874,877 3,615,866 2,158,287 Short Term Investments - - - 5,500,000 - - 2,337 9,189 1,131 10,374,877 3,615,866 2,158,287 Bank overdrafts (469,245) (298,659) (428,568) (5,930,298) (1,192,050) (3,874,270) (466,908) (289,470) (427,437) 4,444,579 2,423,816 (1,715,983) Figures in brackets indicate deductions.
NOTES TO THE FINANCIAL STATEMENTS 1 CORPORATE INFORMATION Ceylon Beverage Holdings PLC is a public limited liability Company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The parent Company is Carson Cumberbatch PLC (CCPLC). The Interim Consolidated Financial Statements for the 1st quarter ended 30 th June 2013 comprise of the Company and its subsidiaries (together referred to as the "Group" and individually Group entities). The Subsidiaries of the Company are set out below. Subsidiary Controlling interest Lion Brewery (Ceylon) PLC 52.25% Pubs 'N Places (Private) Limited 99.9% Retail Spaces (Private) Limited 100% Luxury Brands (Private) Limited 100% The principal activities of the Group is brewing and marketing of high quality beers for both local & export markets and retailing of beer & alcohol products through its owned/managed wine shops & pubs. The Group is also engaged in the import & marketing of globally renowned high quality beer and spirits brands. 2 BASIS OF PREPARATION 2.1 Statement of Compliance The condensed Interim Financial Statements of the Company and Group have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34 Interim Financial Reporting. This Interim Financial Statement should be read in conjunction with the Annual Financial Statements for the year ended 31st March 2013 including the changes to accounting policies as a result of adapting to Sri Lanka Financial Reporting Standards,(" SLFRSs/LKASs ") 2.2 Basis of measurement The Financial Statements have been prepared on the historical cost basis and applied consistently with no adjustments being made for inflationary factors affecting the financial statements, except for the following; - Freehold Land and buildings are measured at cost at the time of acquisition and construction and subsequently at revalued amounts, which are the fair values at the date of revaluation less accumulated depreciation and impairment losses, if any. - Employee benefits are recognized as the net total of the plan assets, plus unrecognized past service cost and unrecognized actuarial losses, less unrecognized actuarial gains and the present value of the defined benefit obligation. 2.3 Functional Currency and Presentation Currency All values presented in the Financial Statements are in Sri Lankan Rupees Thousands (Rs.'000s) which is the Group's functional currency, unless otherwise indicated.
NOTES TO THE INTERIM FINANCIAL STATEMENTS 3 FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIE 3. 1 Finance Commitments Lion Brewery (Ceylon) PLC Document credits established for foreign purchases of the Company as at 30th June 2013 amounts to Rs. 700,251,202/-. (2012 - Rs.673,894/-) 3.2 Contingencies Following legal matters are outstanding against the Group and no provision has been made in the Financial Statements in this regard. 3.2.1 Company In 2008 the Customs Department instituted a prosecution in the Fort Magistrate's Court (MC) in Case No. S/65898/07/B against the Company and its Directors for the recovery of Rs. 48,121,634/29 comprising of Rs.23,062,080/43 being the amount of Excise (Special Provision) Duty (the 'duty')purportedly in arrears during the period 1998/IVq to 2001/IIIq and Rs.25,059,553/86 as its penalty. The Company and the Directors filed an application for Writ in the Court of Appeal (CA) to quash the Certificate of Excise Duty in Default issued by the Director General of Customs and Excise Duty and obtained a Stay Order in respect of the proceedings of the Fort MC Case. A sum of Rs. 23,062,080/43 being the duty amount in dispute was paid to Sri Lanka Customs by the Company as required before submitting its appeal. Subsequently the CA Application was dismissed and the Company appealed against the order to the Supreme Court and was greanted Special Leave to Appeal by the Court. The Court also ordered the staying all further proceedings in the MC Case until final hearing and determination of the appeal. No provision has been made for the penalty of Rs.25,059,553/86 pending an outcome in the Supreme Court matter. 3.2.2 Lion Brewery (Ceylon) PLC The Customs Department instituted a prosecution in the Magistrate's Court of Kaduwela in Case No. 11303/Customs against the company and its directors to recover Excise Duty amounting to Rs. 58,753,582/94 comprising of the disputed Excise Duty of Rs. 29,376,791/47 and its penalty of Rs. 29,376,791/47. The Company and the directors have filed an application for Writ in the Court of Appeal to quash the Certificate Excise Duty in Default issued by the DG of Customs and Excise Duty to recover the said sum and obtained a Stay Order in respect of the proceedings of the MC Kaduwela Case. The Court of Appeal matter is currently pending. (ii) Contingent liabilities as at 30th June 2013 amount to Rs. 865,547,891/- (2012 -Rs. 498,326,767/-), being bank guarantees given to government bodies for operational purposes and shipping guarantees for clearing cargo pending the receipt of original documents. Apart from the above there were no other material contingent liabilities which would require adjustments to or disclosure in the Financial Statements. 4 COMPARATIVE FIGURES Comparative figures/information have been restated/reclassified where necessary in line with the changes to the new Sri Lanka Accounting Standards (SLFRS/LKAS) which are effective from 01st January 2012 and wherever necessary to conform to the current presentation. 5 STATED CAPITAL The company's stated capital consists of 20,988,090 ordinary shares. 6 SEGMENTAL ANALYSIS The Company does not distinguish its products into significant components for different Geographical / Business segments as the differentiations are insignificant. 7 INVESTER INFORMATON Investor Information Quarter Ended 12 Months Ended 30.06.2013 30.06.2012 31.03.2013 31.03.2012 Share Information Price as at the end of the period (Rs.) 503.20 263.50 474.90 349.90 Highest price (Rs.) 625.00 400.00 500.00 649.50 Lowest price (Rs.) 412.00 240.00 240.00 305.00 Trading Statistics No of Transactions 162 139 404 237 No of Shares traded 17,997 14,166 447,345 46,081 Value of all shares traded (Rs. Mn.) 8.85 4.14 153.95 23.05
NOTES TO THE INTERIM FINANCIAL STATEMENTS 8 DEBENTURES The Lion Brewery (Ceylon) PLC ( A subsidiary) issued 3,000,000 Rated Unsecured Redeemable Debentures at the face value of Rs. 1,000/- each to raise Rs. 3,000,000,000/- on 17th June 2013. The interest is paid on 30th June, 30th September, 31st December and 31st March for a period of 5 years. The categories of Debentures and Proportion of each types of debenture in each category are as follows. Category 01 Debentures - Floating Rate Types in Category 01 Debentures Amount Rs. Proportion (From and out of the Category 01 Debentures issued) Interest Rate (per annum) payable quarterly Redemption From the Date of Allotment Type A 201,200,000 20% AWPLR + 0.20% 12 Months (1 Year) Type B 201,200,000 20% AWPLR + 0.40% 24 Months (2 Years) Type C 201,200,000 20% AWPLR + 0.60% 36 Months (3 Years) Type D 201,200,000 20% AWPLR + 0.80% 48 Months (4 Years) Type E 201,200,000 20% AWPLR + 1.10% 60 Months (5 Years) Total 1,006,000,000 Category 02 Debentures - Fixed Rate Types in Category 02 Debentures Amount Rs. Proportion (From and out of the Category 01 Debentures issued) Interest Rate (per annum) payable quarterly AER (per annum) Redemption From the Date of Allotment Type F 598,200,000 30% 13.50% 14.20% 36 Months (3 Years) Type G 598,200,000 30% 13.75% 14.48% 48 Month (4 Years) Type H 797,600,000 40% 14.00% 14.75% 60 Months (5 Years) Total 1,994,000,000
NOTES TO THE INTERIM FINANCIAL STATEMENTS 9 DIRECTOR'S SHAREHOLDINGS AS AT 30TH JUNE 2013 Directors No of Shares Mr. L.C.R. de C Wijetunge (Chairman) - Mr. H. Selvanathan (Deputy Chairman) 690 Mr. M. Selvanathan (Director / Alternate Director to Mr. H. Selvanathan) 690 Mr. S. K. Shah (Chief Executive Officer) 2,632 Mr. D.C.R. Gunawardena 15 Mr. G.J. Fewkes - 10 TWENTY MAJOR SHAREHOLDERS AS AT 30TH JUNE 2013 Name of Shareholder No.of Shares % CARSON CUMBERBATCH PLC A/C NO.2 15,726,912 74.93 CARLSBERG A/S 1,676,440 7.99 GF CAPITAL GLOBAL LIMITED 1,537,220 7.32 HINL-JPMCB-BUTTERFIELD TRUST (BERMUDA) LIMITED 800,000 3.81 CACEIS BANK LUXEMBOURG S/A BARCA GLOBAL MASTER FUND LP 291,668 1.39 HSBC INTERNATIONAL NOMINEES LTD-SSBT-DEUSTCHE BANK AG SINGAPORE A/C 01 135,000 0.64 TRANZ DOMINION,L.L.C. 72,003 0.34 PERSHING LLC S/A CHAMBERS STREET GLOBAL FUND, LP 50,291 0.24 MR. H.W.M. WOODWARD 40,065 0.19 MRS. J.K.P. SINGH 37,400 0.18 HSBC INTL NOM LTD-UBS AG ZURICH 34,235 0.16 EST OF LAT M. RADHAKRISHNAN (DECEASED) 24,400 0.12 MR. H.A. VAN STARREX 24,234 0.12 GUINNESS MORISON INTERNATIONAL LIMITED 20,953 0.10 MR. H.A. PIERIS 17,500 0.08 SECRETARIAL SERVICES LIMITED. 12,100 0.06 MR. N.J. GAMADIA 8,786 0.04 SEYLAN BANK LIMITED/PRIYANI DHARSHINI RATNAGOPAL 8,650 0.04 MISS R.E.W. JAYASURIYA 8,276 0.04 THE CEYLON DESICCATED COCONUT AND OIL COMPANY PVT LTD 8,276 0.04 11 PUBLIC HOLDING Percentage of shares held by the public as at 30th June 2013 was 17.05%. 12 EVENTS AFTER THE BALANCE SHEET DATE Subsequent to the Balance Sheet date, no circumstances have arisen which would require adjustments to or disclosure in the Financial Statements.
NOTES TO THE INTERIM FINANCIAL STATEMENTS 13 RELATED PARTY TRANSACTIONS The Group carries out transactions in the ordinary course of business with parties who are defined as related parties in Sri Lanka Accounting Standard LKAS 24 - Related Party Disclosures the details of which are reported below. 13.1 Transactions with subsidiary companies (a) Lion Brewery (Ceylon) PLC (LBCPLC) Messers. L.C.R.de C. Wijetunge (Chairman), H.Selvanathan, S.K.Shah, D.C.R.Gunawardena, Directors of the Company, are also Directors of Lion Brewery (Ceylon) PLC, with which the following contracts/ transactions have been entered into during the period by the Company in the normal course of business. (i) was charged Rs. Rs. 32,722,529/- (2012 - Rs. 31,120,610/-) as royalty in accordance with the licensed brewing agreement with the Company. (ii) As at 30th June 2013 the balance receivable to the Company is Rs. 9,239,171/-. (2012 -Rs. 8,339,013/-) (b) Pubs 'N Places (Private) Limited (i) Mr. S.K. Shah, Director of the Company is also a Director of Pubs 'N Places (Private) Limited, to which the LBCPLC sold beer for a total value of Rs. 44,414,901/- ( 2012 - Rs. 34,482,567/-) during the period. (ii) An amount of Rs. 366,422,138/- was receivable from Pubs 'N Places (Private) Limited to the Company as at 30th June 2013. (2012 - Rs.239,820,,279/-) (c) Retail Spaces (Private) Limited (i) Messrs. S.K. Shah, C.P. Amerasinghe and D.R.P. Goonetilleke, Directors of the LBCPLC are also Directors of Retail Spaces (Private) Limited, to which the Company sold beer for a total value of Rs. 39,819,208 /- ( 2012 - Rs. 19,727,454/-) during the period. (ii) An amount of Rs. 14,677,637/- was receivable from Retail Spaces (Private) Limited to the Company as at 30th June 2013. (2012 - Nill/-) (d) Luxury Brands (Private) Limited Messrs. S.K. Shah, C.P. Amerasinghe and D.R.P. Goonetilleke, Directors of the LBCPLC are also Directors of Luxury Brands (Private) Limited, from which the LBCPLC obtained management services amounted to Rs. 2,355,830/- (2012 - Nil). An amount of Rs. 67,711,246/- was receivable from Luxury Brands (Private) Limited to LBCPLC as at 30th June 2013.(2012 - Nill/) 13.2 Transactions with group entities Messrs. H.Selvanathan and S.K.Shah Directors of the Company, are also Directors of Carsons Management Services (Private) Limited, which provides management and secretarial services to the Group. An amount of Rs. 51,951,828/-(2012 -Rs. 53,205,774 /) was paid by the Group during the year to Carsons Management Services (Private) Limited which included management and secretaries fees of Rs. 31,218,645/- (2012 - Rs. 32,813,227) and other reimbursable expenses incurred by Carsons Management Services (Private) Limited on behalf of the Group. No balances were payable to Carsons Management Services (Private) Ltd. as at 30th June 2013 (2012 -Nill). 13.3 Transactions with other related entities (i) Messrs. S.G.Lauridsen and H.J.Andersen, Directors of the LBCPLC represent Carlsberg Brewery Malaysia Berhad with which the following contracts / transactions have been entered into by LBCPLC during the period in the normal course of business. As per the licensed brewing agreement, a sum of Rs. 22,461,120/- (2012 - Rs.17,229,576/-) was paid by LBCPLC as royalty during the period to Carlsberg A/S. An amount of Rs. 22,461,120/- is payable to Carlsberg A/S by LBCPLC as at 30th June 2013. (2012 - Rs. 17,229,576/-). (ii) Messrs. K. Selvanathan and S.G.Lauridsen, Directors of LBCPLC are also Directors of Carlsberg India (Pvt) Limited from which LBCPLC purchased finished beer cans for the purpose of resale during the period for a sum of Rs. 138,640,521/- (2012 - Rs. 151,912,624/-) (iii) An amount of Rs. 22,461,120/- is payable to Carlsberg A/S from LBCPLC as at 30th June 2013 (2012 - Rs. 17,229,574/-).
NOTES TO THE INTERIM FINANCIAL STATEMENTS 13 RELATED PARTY TRANSACTIONS (Contd) (iv) Lion Brewery (Ceylon) PLC (LBCPLC) purchases a part of its requirement of the raw material rice from Ran Sahal (Private) Limited. The entire production of Ran Sahal (Private) Limited is exclusively sold to the LBCPLC. Towards this the LBCPLC advances funds to Ran Sahal (Private) Limited from time to time in against of future purchases. As at the reporting date an amount of Rs.42,318,147/- (2012 - Rs.21,295,642/-) has been advanced to Ran sahal (Private) Limited which remains to be settled from future As at the Balance Sheet date an amount of Rs. 85,506,445/- (2012 - Rs. 87,266,400/-) has been advanced to Ran sahal (Private) Limited which remains to be settled from future purchases. (v) Messrs D.C.R. Gunawardene, Director of the LBCPLC, is also a Director of Equity Two PLC and Equity One with which the LBCPLC entered into transactions. (a) An amount of Rs. 10,285/- has been paid as parking fees to Equity Two PLC. (2012 - Rs.10,285/-) (b) No amount has been paid as rental to Equity One PLC as at 30th June 2013. (2012 - Rs. 6,342/-) (vi) Messrs D.C.R. Gunawardene and Mr. H. Selvanathan, Directors of the LBCPLC, are also Directors of Carsons Air Line Services (Private) Limited and Pegasus Hotels of Ceylon PLC with which the group entered into transactions. (a) The Group purchased air line tickets and obtained other services from Carsons Air Line Services (Private) Limited for which amount of Rs. 4,708,911/- (2012 - Rs.2,649,310/-) was paid during the period. (b) The Group has obtained services from Pegasus Hotels of Ceylon PLC for which an amount of Rs. 17,400/- (2012 - Rs. 146,464/-) was paid during the period. 13.4 Transactions with key management personnel (KMP) (I) Accounting Standard 24 "Related Party Disclosures", key management personnel are those having authority and responsibility for planning and controlling the activities of the entity. Accordingly, the Directors of the Company and its parent company (including executive and non executive directors) and their immediate family members have been classified as KMP. (II) The compensation paid to key management personnel as short-term employment benefits and no other payments such as postemployment benefits, termination benefits and share based payments have been paid to key management personnel during the period. (iii) During the period LBCPLC sold a motor vehicle to Mr. C.T.Liyanage, one of its Directors, for Rs.3,080,000/-. When the disposal was made the carrying value of the motor vehicle was Rs. 4,861,462/-.
CORPORATE INFORMATION NAME OF COMPANY LEGAL ADVISERS Ceylon Beverage Holdings PLC Messrs. F.J.& G. De.Saram (A Carson Cumberbatch Company) No.216, De Saram Place Colombo 10 COMPANY REGISTRATION NUMBER Sri Lanka PQ 35 Tel: + 94 11 4718200 Fax:+ 94 11 4718220 LEGAL FORM A public Quoted Company with Limited Liability AUDITORS Incorporated in Sri Lanka in 1910 Messers. KPMG Chartered Accountants SUBSIDIARY COMPANIES No. 32A, Sir Mohamed Macan Markar Mawatha Lion Brewery (Ceylon) PLC Colombo 3 Pubs 'N Places (Private) Limited [previously known as CBL Retailers (Private) Limited] Sri Lanka Retail Spaces (Private) Limited Tel: + 94 11 5426426 Luxury Brands (Private) Limited Fax:+94 11 2445872 PARENT COMPANY Carson Cumberbatch PLC REGISTERED OFFICE No: 61, Janadhipathi Mawatha DIRECTORS Colombo 1 L. C. R. de C. Wijetunge (Chairman) Sri Lanka H. Selvanathan (Deputy Chairman) Tel: +94 11 2039200 M. Selvanathan (Director / Alternate Director to H. Selvanathan) Fax: +94 11 2039300 S. K. Shah (Chief Executive Officer) D. C. R. Gunawardena CORPORATE OFFICE & BREWERY G. J. Fewkes No.254, Colombo Road, Biyagama Sri Lanka MANAGERS & SECRETARIES Tel: +94 11 2465900 (10 Lines) Carsons Management Services (Private) Limited Fax:+94 11 2465901 No: 61, Janadhipathi Mawatha Colombo 1 GROUP WEBSITE Sri Lanka www.carsoncumberbatch.com Tel: +94 11 2039200 Fax: +94 11 2039300 BANKERS Bank of Ceylon Citibank Commercial Bank Deutsche Bank Hatton National Bank HSBC Nations Trust Bank Peoples Bank Standard Chartered Bank Sampath Bank DFCC NDB