No. 117, Sir Chittampalam A Gardiner Mawatha 1 CONSOLIDATED INCOME STATEMENT For the three months ended 30th June 2017 2016 Change % Continuing operations Sale of goods 12,342,740 10,279,427 20 Revenue 12,342,740 10,279,427 20 Cost of sales (10,683,367) (8,508,671) 26 Gross profit 1,659,373 1,770,756 (6) Other operating income 328,228 248,958 32 Distribution expenses (473,277) (400,135) 18 Administrative expenses (364,664) (278,998) 31 Other operating expenses (174,659) (156,289) 12 Results from operating activities 975,001 1,184,292 (18) Finance cost (2,067) (2,023) 2 Finance income 31,664 57,194 (45) Net finance income 29,597 55,171 (46) Share of results of equity accounted investments (5,430) (3,832) 42 Profit before tax 999,168 1,235,631 (19) Tax expense (323,373) (380,365) (15) Profit for the period 675,795 855,266 (21) Attributable to: Equity holders of the Parent 675,795 855,266 (21) LKR LKR Earnings per share Basic 7.11 9.00 Dividend per share 8.00 10.00
No. 117, Sir Chittampalam A Gardiner Mawatha 2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the three months ended 30th June 2017 2016 Profit for the period 675,795 855,266 Other comprehensive income Other comprehensive income to be reclassified to income statement in subsequent periods Share of other comprehensive income of equity accounted investees 54,317 (59,991) Net other comprehensive income to be reclassified to income 54,317 (59,991) Total comprehensive income for the period, net of tax 730,112 795,275 Attributable to: Equity holders of the Parent 730,112 795,275 730,112 795,275
3 No. 117, Sir Chittampalam A Gardiner Mawatha CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30.06.2017 31.03.2017 ASSETS Non-current assets Property, plant and equipment 8,666,385 8,107,133 Lease rentals paid in advance 148,532 174,701 Investment property 207,042 207,042 Intangible assets 148,106 151,156 Investment in equity accounted investees 6,063,291 6,029,201 Non-current financial assets 182,266 170,263 Other non-current assets 572,355 554,337 15,987,977 15,393,833 Current assets Inventories 3,478,698 3,540,542 Trade and other receivables 1,829,344 2,227,914 Amounts due from related parties 5,088 5,570 Other current assets 702,028 668,250 Short term investments 913,715 415,660 Cash in hand and at bank 268,724 203,236 7,197,597 7,061,172 Total assets 23,185,574 22,455,005 EQUITY AND LIABILITIES Equity attributable to equity holders of the Parent Stated capital 918,200 918,200 Revenue reserves 10,001,061 10,102,361 Other components of equity 2,247,272 2,168,837 Total equity 13,166,533 13,189,398 Non-current liabilities Interest-bearing loans and borrowings 248,525 129,525 Deferred tax liabilities 998,470 992,308 Employee benefit liabilities 494,547 471,353 Other non-current liabilities 192,200 193,465 Other deferred liabilities 52,753 55,489 1,986,495 1,842,140 Current liabilities Trade and other payables 5,034,708 4,804,967 Amounts due to related parties 167,928 155,142 Income tax liabilities 638,081 589,168 Interest-bearing loans and borrowings 324,167 141,667 Other current liabilities 785,899 1,005,919 Bank overdrafts 1,081,763 726,604 8,032,546 7,423,467 Total equity and liabilities 23,185,574 22,455,005 LKR LKR Net assets per share 138.54 138.78 I certify that the financial statements comply with the requirements of the Companies Act, No.7 of 2007. S R Jayaweera Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of these financial statements. J R Gunaratne J R F Peiris Director Director 24th July 2017
No. 117, Sir Chittampalam A Gardiner Mawatha 4 CONSOLIDATED STATEMENT OF CASH FLOWS For the three months ended 30th June Note 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Profit before working capital changes A 1,268,605 1,378,724 (Increase) / Decrease in inventories 61,844 68,768 (Increase) / Decrease in trade and other receivables 398,570 176,983 (Increase) / Decrease in amounts due from related parties 482 2,898 (Increase) / Decrease in other current assets (33,778) (219,250) (Increase) / Decrease in non-current financial assets (12,003) (8,177) (Increase) / Decrease in other non-current assets (18,018) (16,546) Increase / (Decrease) in trade and other payables 229,741 (77,089) Increase / (Decrease) in amounts due to related parties 12,786 38,540 Increase / (Decrease) in other current liabilities (220,020) 4,186 Increase / (Decrease) in deferred liabilities (2,736) 33,217 Increase / (Decrease) in other non-current liabilities (1,265) 12,787 Cash generated from operations 1,684,208 1,395,041 Finance income received 31,664 57,194 Finance costs paid (2,067) (2,023) Tax paid (268,298) (137,941) Gratuity paid (13,231) (13,278) Net cash flow from operating activities 1,432,276 1,298,993 CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (777,653) (376,174) Proceeds from sale of property, plant and equipment 12,595 4,187 Net cash flow used in investing activities (765,058) (371,987) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Dividend paid to equity holders of Parent (760,320) (950,400) Dividend paid to preference shareholders (14) (14) Proceeds from/(repayment of) interest bearing borrowings (net) 301,500 (20,524) Net cash flow used in financing activities (458,834) (970,938) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 208,384 (43,932) CASH AND CASH EQUIVALENTS AT THE BEGINNING (107,708) 1,705,258 CASH AND CASH EQUIVALENTS AT THE END 100,676 1,661,326 ANALYSIS OF CASH AND CASH EQUIVALENTS Favorable balances Short term investments 913,715 2,038,695 Cash in hand and at bank 268,724 421,891 Unfavorable balances Bank overdrafts (1,081,763) (799,260) Total Cash and cash equivalents 100,676 1,661,326
No. 117, Sir Chittampalam A Gardiner Mawatha 5 CONSOLIDATED STATEMENT OF CASH FLOWS For the three months ended 30th June 2017 2016 A. Profit before working capital changes Profit before tax 999,168 1,235,631 Adjustments for: Finance income (31,664) (57,194) Finance cost 2,067 2,023 Share-based payment expense 24,118 19,134 Share of results of equity accounted investments 5,430 3,832 Amortisation of lease rentals paid in advance 26,169 - Realised gain on lease rights forgone (1,964) (11,997) Depreciation of property, plant and equipment 212,012 160,945 (Profit)/Loss on sale of property, plant and equipment (6,206) 99 Amortisation of intangible assets 3,050 2,733 Gratuity provision and related costs 36,425 23,518 1,268,605 1,378,724
No. 117, Sir Chittampalam A Gardiner Mawatha 6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of Parent Stated ESOP Revaluation Foreign Cash flow Revenue Total capital reserve reserve currency hedge reserves Equity translation reserve reserve As at 1 April 2016 918,200 179,232 806,716 696,693-9,744,890 12,345,731 Profit for the period - - - - - 855,266 855,266 Other comprehensive income - - - (59,991) - - (59,991) Total comprehensive income - - - (59,991) - 855,266 795,275 Share based payments - 19,134 - - - - 19,134 Final dividend paid - 2015/16 - - - - - (950,400) (950,400) Preference dividend paid - 2015/16 - - - - - (14) (14) Changes of holding in associate - - - - - (61,882) (61,882) As at 30 June 2016 918,200 198,366 806,716 636,702-9,587,860 12,147,844 As at 1 April 2017 918,200 270,721 947,588 867,703 82,825 10,102,361 13,189,398 Profit for the period - - - - - 675,795 675,795 Other comprehensive income - - - 59,940 (5,623) - 54,317 Total comprehensive income - - - 59,940 (5,623) 675,795 730,112 Share based payments - 24,118 - - - - 24,118 Final dividend paid - 2016/17 - - - - - (760,320) (760,320) Preference dividend paid - 2016/17 - - - - - (14) (14) Changes of holding in associate - - - - - (16,761) (16,761) As at 30 June 2017 918,200 294,839 947,588 927,643 77,202 10,001,061 13,166,533
No. 117, Sir Chittampalam A Gardiner Mawatha 7 COMPANY INCOME STATEMENT For the three months ended 30th June 2017 2016 Change % Continuing operations Sale of goods 3,383,238 3,554,326 (5) Revenue 3,383,238 3,554,326 (5) Cost of sales (2,214,311) (2,178,246) 2 Gross profit 1,168,927 1,376,080 (15) Dividend income 291,023 273,023 7 Other operating income 15,050 3,056 392 Distribution expenses (381,763) (327,405) 17 Administrative expenses (170,053) (127,253) 34 Other operating expenses (71,722) (79,917) (10) Results from operating activities 851,462 1,117,584 (24) Finance cost (501) (1,965) (75) Finance income 16,246 34,928 (53) Net finance income 15,745 32,963 (52) Profit before tax 867,207 1,150,547 (25) Tax expense (160,597) (249,363) (36) Profit for the period 706,610 901,184 (22) Rs. Rs. Dividend per share 8.00 10.00
No. 117, Sir Chittampalam A Gardiner Mawatha 8 COMPANY STATEMENT OF COMPREHENSIVE INCOME For the three months ended 30th June 2017 2016 Profit for the period 706,610 901,184 Other comprehensive income for the period - - Total comprehensive income for the period, net of tax 706,610 901,184
No. 117, Sir Chittampalam A Gardiner Mawatha 9 COMPANY STATEMENT OF FINANCIAL POSITION As at 30.06.2017 31.03.2017 ASSETS Non-current assets Property, plant and equipment 4,083,085 4,122,304 Investment property 207,042 207,042 Intangible assets 7,885 8,727 Investment in subsidiaries 1,492,892 1,492,892 Investment in equity accounted investees 5,392,863 5,392,863 Non-current financial assets 103,287 91,078 Other non-current assets 25,045 20,585 11,312,099 11,335,491 Current assets Inventories 1,217,999 1,192,696 Trade and other receivables 1,234,092 1,720,333 Amounts due from related parties 37,462 38,882 Other current assets 228,460 155,501 Short term investments 602,937 361,746 Cash in hand and at bank 123,835 73,759 3,444,785 3,542,917 Total assets 14,756,884 14,878,408 EQUITY AND LIABILITIES Stated capital 918,200 918,200 Revenue reserves 9,423,631 9,477,355 Other components of equity 1,077,318 1,063,107 Total equity 11,419,149 11,458,662 Non-current liabilities Deferred tax liabilities 603,239 611,326 Employee benefit liabilities 378,453 363,698 Other non-current liabilities 192,200 193,465 1,173,892 1,168,489 Current liabilities Trade and other payables 1,014,842 1,007,558 Amounts due to related parties 10,249 3,276 Income tax liabilities 407,989 421,821 Interest-bearing loans and borrowings 7,500 15,000 Other current liabilities 406,171 575,216 Bank overdrafts 317,092 228,386 2,163,843 2,251,257 Total equity and liabilities 14,756,884 14,878,408 Rs. Rs. Net assets per share 120.15 120.57 I certify that the financial statements comply with the requirements of the Companies Act, No.7 of 2007. S R Jayaweera Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of these financial statements. J R Gunaratne J R F Peiris Director Director 24th July 2017
No. 117, Sir Chittampalam A Gardiner Mawatha 10 COMPANY STATEMENT OF CASH FLOWS For the three months ended 30th June 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 867,207 1,150,547 Adjustments for: Finance income (16,246) (34,928) Dividend income (291,023) (273,023) Finance cost 501 1,965 Depreciation of property, plant and equipment 117,166 95,726 Loss on sale of property, plant and equipment 21 115 Amortisation of intangible assets 842 916 Share based payment expenses 14,211 11,148 Gratuity provision and related costs 19,338 16,186 Profit before working capital changes 712,017 968,652 (Increase) / Decrease in inventories (25,303) (14,080) (Increase) / Decrease in trade and other receivables 486,241 102,511 (Increase) / Decrease in amounts due from related parties 1,420 (521) (Increase) / Decrease in other current assets (72,959) (57,295) (Increase) / Decrease in non-current financial assets (12,209) 2,386 (Increase) / Decrease in other non-current assets (4,460) 520 Increase / (Decrease) in trade and other payables 7,284 (143,988) Increase / (Decrease) in amounts due to related parties 6,973 10,527 Increase / (Decrease) in other current liabilities (169,045) (4,024) Increase / (Decrease) in other non-current liabilities (1,265) 12,787 Cash generated from operations 928,694 877,475 Finance income received 16,246 34,928 Finance expenses paid (501) (1,965) Tax paid (182,516) (90,647) Gratuity paid (4,583) (8,072) Net cash flow from operating activities 757,340 811,719 CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (78,016) (128,679) Proceeds from sale of property, plant and equipment 48 42 Dividend income received 291,023 273,023 Net cash flow used in investing activities 213,055 144,386 CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Dividend paid to equity holders (760,320) (950,400) Dividend paid to preference shareholders (14) (14) Repayment of long term borrowings (net) (7,500) (20,524) Net cash flow used in financing activities (767,834) (970,938) NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS 202,561 (14,833) CASH AND CASH EQUIVALENTS AT THE BEGINNING 207,119 1,239,789 CASH AND CASH EQUIVALENTS AT THE END 409,680 1,224,956 ANALYSIS OF CASH AND CASH EQUIVALENTS Favorable balances Short term investments 602,937 1,296,107 Cash in hand and at bank 123,835 148,305 Unfavorable balances Bank overdrafts (317,092) (219,456) Total cash and cash equivalents 409,680 1,224,956
11 No. 117, Sir Chittampalam A Gardiner Mawatha COMPANY STATEMENT OF CHANGES IN EQUITY Stated ESOP Revaluation Revenue Total capital reserve reserve reserves Equity As at 1 April 2016 918,200 106,283 797,364 9,363,562 11,185,409 Profit for the period - - - 901,184 901,184 Total comprehensive income - - - 901,184 901,184 Share based payments - 11,148 - - 11,148 Final dividend paid - 2015/16 - - - (950,400) (950,400) Preference dividend paid - 2015/16 - - - (14) (14) As at 30 June 2016 918,200 117,431 797,364 9,314,332 11,147,327 As at 1 April 2017 918,200 160,065 903,042 9,477,355 11,458,662 Profit for the period - - - 706,610 706,610 Total comprehensive income - - - 706,610 706,610 Share based payments - 14,211 - - 14,211 Final dividend paid - 2016/17 - - - (760,320) (760,320) Preference dividend paid - 2016/17 - - - (14) (14) As at 30 June 2017 918,200 174,276 903,042 9,423,631 11,419,149
12 No. 117, Sir Chittampalam A Gardiner Mawatha OPERATING SEGMENT INFORMATION Business segments The following tables present revenue, profit information and other disclosures regarding Group's business segments. Manufacturing Retail Group Total For the three months ended 30th June 2017 2016 2017 2016 2017 2016 External revenue 3,307,816 3,473,415 9,034,924 6,806,012 12,342,740 10,279,427 Inter segment revenue 75,422 80,911 - - 75,422 80,911 Total Segment revenue 3,383,238 3,554,326 9,034,924 6,806,012 12,418,162 10,360,338 Eliminations of inter segment revenue (75,422) (80,911) Net revenue 12,342,740 10,279,427 Segment result 842,495 1,117,584 426,903 317,614 1,269,398 1,435,198 Finance cost (508) (1,965) (1,559) (58) (2,067) (2,023) Finance income 17,452 34,928 14,212 22,266 31,664 57,194 Share of results of equity accounted investments - - - - (5,430) (3,832) Eliminations / adjustments - - - - (294,397) (250,906) Profit before tax 859,439 1,150,547 439,556 339,822 999,168 1,235,631 Tax expense (160,935) (249,363) (162,438) * (131,002) * (323,373) (380,365) Profit for the period 698,504 901,184 277,118 208,820 675,795 855,266 Reportable Segment Assets 7,664,087 7,667,037 8,335,652 6,446,550 16,800,235 14,093,788 Capital Expenditure 78,016 128,679 699,637 247,495 777,653 376,174 Reportable Segment Liabilities 3,337,735 3,246,869 6,130,559 4,721,805 10,019,041 7,945,325 Inter-segment revenue and inter-company balances are eliminated on consolidation Segment Asset do not include Goodwill, Investment Property, Investment in Subsidiaries and Investment in Associate * Retail segment tax expense includes tax on consolidation adjustments
13 No. 117, Sir Chittampalam A Gardiner Mawatha NOTES TO 1 CORPORATE INFORMATION Ceylon Cold Stores PLC is a Public Limited Company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. Ordinary shares of the Company are listed on the Colombo Stock Exchange. 2 The consolidated financial statements for the quarter ended 30th June 2017, comprise the Company referring to Ceylon Cold Stores PLC as the Holding Company and the Group referring to the companies whose accounts have been consolidated therein. 3 APPROVAL OF FINANCIAL STATEMENTS The interim condensed financial statements of the Group and the Company for the quarter ended 30 June 2017 were authorised for issue by the Board of Directors on 24th July 2017. 4 BASIS OF PREPARATION The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard (SLAS) LKAS 34 - Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2017. The interim condensed financial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand except when otherwise indicated. 5 OPERATING SEGMENTS For management purposes, the Group is organised into business units based on their products and services and has two reportable operating segments as follows: Manufacturing Retail
No. 117, Sir Chittampalam A Gardiner Mawatha 14 NOTES TO 6 RELATED PARTY TRANSACTIONS Group Company In LKR '000s 2017 2016 2017 2016 Transactions with related parties Ultimate parent Sale of goods 218 861 - - Receiving of services (34,114) (35,223) (17,427) (14,329) Subsidiaries Sale of goods - - 75,422 80,911 Receiving of services - - (4,724) (2,318) Companies under common control Sale of goods 2,382 6,637 1,015 5,137 Purchase of goods (165,304) (156,990) - - Rendering of services 7,908 5,227 5,399 3,727 Receiving Services (141,846) (111,801) (7,581) (6,689) Post employment benefit plan Contributions to the provident fund (25,212) (27,354) (23,271) (25,133) Transactions with related parties - equity accounted investees of Ultimate Parent Interest received 515 373 153 162 7 Share information 7.1 Stated capital Stated capital is represented by number of shares in issue as given below: As at 30-06-2017 31-03-2017 Ordinary shares 95,040,000 95,040,000 Preference shares 25,000 25,000 7.2 Net assets per share Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 30 June 2017. 7.3 Market price per share For the quarter ended 30th June 2017 2016 Rs. Rs. Highest 1,000.00 564.90 Lowest 810.00 400.10 Last traded 882.60 557.60 7.4 Public share holdings The percentage of shares held by the public as at 30 June 2017 was 18.60% (31 March 2017 18.58%). The number of public shareholders as at 30 June 2017 was 1,993 (31 March 2017 1,906). 7.5 Directors' share holdings The number of shares held by the Board of Directors (including their spouses) are as follows: As at 30-06-2017 31-03-2017 Mr. S.C. Ratnayake (Chairman) 3,344 3,344 Mr.A.D Gunewardene 30,800 30,800 Mr.J.R.F Peiris 668 668 Mr.J.R Gunaratne (CEO) 5,080 5,080 Mr. M. Hamza 1,000 1,000 Dr.R.S.W Wjeratnam Nil Nil Ms.S.T. Ratwatte Nil Nil
No. 117, Sir Chittampalam A Gardiner Mawatha 15 NOTES TO 7.6 Twenty largest shareholders of the company are as follows: As at 30-06-2017 31-03-2017 Number of shares % Number of shares % 1 John Keells Holdings PLC 67,109,128 70.61% 67,109,128 70.61% 2 Whittal Boustead (Pvt) Ltd 10,165,392 10.70% 10,165,392 10.70% 3 GF Capital Global Limited 2,074,241 2.18% 2,074,241 2.18% 4 HSBC International Nominees Ltd - BBH - Matthews Emerging Asia Fund 1,350,000 1.42% - - 5 Standard Chartered Bank Mauritius S/A Chambers Street Global Fund, LP 1,053,474 1.11% 2,682,642 2.82% 6 HSBC International Nominees Ltd - JPMLU - T Rowe Price Funds SICVA 509,243 0.54% - - 7 Northern Trust Co S/A Caravel Fund (International) Ltd 435,003 0.46% - - 8 CB London S/A Verdipapirfondet Holberg Rurik 380,044 0.40% 189,734 0.20% 9 HSBC International Nominees Ltd-Ssbt-Deutsche Bank Ag Singapore A/C 01 274,153 0.29% 298,956 0.31% 10 Life Insurance Corporation of India 272,912 0.29% 272,912 0.29% 11 Northern Trust Company S/A Coupland Cardiff Funds 262,019 0.28% 262,019 0.28% 14 Sisira Investors Limited 259,132 0.27% 259,132 0.27% 12 Hsbc Intl Nom Ltd - BBH - Fidelity Funds 253,519 0.27% 253,519 0.27% 13 Ayenka Holdings Private Limited 222,500 0.23% 150,000 0.16% 15 Seylan Bank PLC/Channa Nalin Rajah money 190,000 0.20% 175,000 0.18% 16 HSBC Intl Nom Ltd-Jpmcb Na-Fidelity Asian Values PLC 184,735 0.19% 184,735 0.19% 17 Deutsche Bank AG Singapore Branch 175,000 0.18% 175,000 0.18% 18 Est of Late M. Radhakrishnan (Deceased) 169,256 0.18% 169,256 0.18% 19 J.R. Printer (Deceased) 167,936 0.18% 167,936 0.18% 20 Hsbc Intl Nom Ltd-Jpmcb-T.Rowe Price Institutional Frontier Markets Equity Fund 164,209 0.17% 165,734 0.17% 8 Dividends paid Final dividend of Rs 8.00 per share for the financial year ending 31 March 2017 was paid on 01 June 2017. 9 Comparative Information The presentation and classification of the financial statements of the previous year have been amended, where relevant for better presentation and to be comparable with those of the current year. 10 Contingencies, capital and other commitments There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the annual report for the year ended 31 March 2017. 11 Resignation and appointment of Directors Mr A.R.Rasiah came up for re-election in terms of section 84 of the Articles of Association at the Annual General Meeting of the Company held on the 07 of June 2017. Having served the Board over 12 years, he informed us that he would not be seeking re-election and resigned with effect from 07 June 2017. 12 Events after the reporting period There have been no events subsequent to the reporting date, which require disclose in the interim condensed financial statement.