INTERIM STATEMENT (UNAUDITED) For the Quarter Ended 30 th June 2017
STATEMENT OF FINANCIAL POSITION Consolidated Consolidated Unaudited 31st March 2017 Unaudited 31st March 2017 AS AT 30th June 2017 30th June 2016 30th June 2017 30th June 2016 ASSETS 2,150,540 1,087,580,373 Property, Plant and Equipment 1,117,311,499 1,160,215,658 1,903,337 3,316,617 27,798,680 Capital-Work in Prpgress 18,931,467-753,883,000 164,361,670 Investment in Subsidiaries 164,361,670 753,883,000 800,873,151 - Investment in Associates - 48,986 13,118,432 Intangible Assets 13,112,989 13,069,446 43,543 - - 142,527,130 Goodwill on Acquisition 142,527,130 232,801,935-756,082,526 1,435,386,285 1,456,244,755 1,406,087,039 755,829,880 804,189,768-504,576,572 Inventories 549,969,392 325,270,190-459,953,409 517,253,409 Investments 528,933,675 568,622,134 471,883,675 511,822,134 193,855 405,227,909 Trade & Other Receivable 384,767,832 476,397,984 183,355 135,855 141,863,366 494,252,799 Amount Due from Related Companies 428,551,883 405,260,267 132,338,469 188,122,720 25,126,425 82,228,698 Cash & Cash Equivalents 51,038,044 99,422,446 8,939,706 8,228,442 627,137,055 2,003,539,387 CURRENT ASSETS 1,943,260,825 1,874,973,021 613,345,204 708,309,151 1,383,219,582 3,438,925,672 TOTAL ASSETS 3,399,505,580 3,281,060,060 1,369,175,085 1,512,498,919 EQUITY 714,508,200 714,508,200 Stated Capital 714,508,200 714,508,200 714,508,200 714,508,200 63,518,582 290,334,799 Reserve 291,887,998 294,237,511 64,821,781 79,812,963 Revaluation Surplus (93,335,922) 137,436,024 Retained Profit / (Loss) for The Year 135,454,231 167,196,238 (100,857,997) 24,417,776 684,690,860 TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE 1,142,279,023 PARENT 1,141,850,429 1,175,941,949 678,471,984 818,738,939-565,665,520 Non Controlling Interest 570,998,814 476,346,746-684,690,860 1,707,944,543 TOTAL EQUITY 1,712,849,243 1,652,288,695 678,471,984 818,738,939 LIABILITIES 437,138,850 713,052,336 Interest Bearing Borrowings 757,321,526 748,193,547 438,086,059 517,992,793 - (7,445,931) Deferred Tax Liabilities (7,445,931.05) (7,445,931) - - 117,295 6,908,486 Defined Benefit Plans 7,168,733 7,140,711 117,295-437,256,145 712,514,890 NON CURRENT LIABILITIES 757,044,328 747,888,327 438,203,354 517,992,793 29,181,433 134,579,553 Trade & Other Payables 115,667,070 138,550,238 29,506,682 2,504,898 157,187,306 567,559,424 Interest Bearing Borrowings 623,123,344 395,156,617 154,388,145 140,872,311 6,731,133 51,437,041 Taxation 51,204,182 46,571,958 6,748,273 396,295 60,876,552 227,417,913 Amounts Due to Related Companies 91,113,169 268,116,234 40,497,745 24,797,811 7,296,152 37,472,309 Bank Overdraft 48,504,244 32,487,991 21,358,901 7,195,870 261,272,575 1,018,466,240 CURRENT LIABILITIES 929,612,009 880,883,038 252,499,746 175,767,186 698,528,720 1,730,981,130 TOTAL LIABILITIES 1,686,656,337 1,628,771,364 690,703,101 693,759,979 1,383,219,582 3,438,925,673 TOTAL EQUITY & LIABILITIES 3,399,505,580 3,281,060,060 1,369,175,085 1,512,498,919 0.76 1.27 Net Assets per shares 1.27 2.62 0.76 1.82 * Each AINV ordinary share was sub-divided in to two (02) Ordinary Shares on 16th January 2017. The above figures are provisional & subject to audit Sgd. Director Ajita M. Pasqual Sgd. Director L.W.W.Priyankara Approved by the board on 25th August 2017
STATEMENT OF COMPREHENSIVE INCOME Consolidated FOR THE PERIOD ENDED 30TH JUNE 2017 03 Months Ended 03 Months Ended 30th June 2017 30th June 2016 30th June 2017 30th June 2016 CONTINUING OPERATION Revenue 187,780,736 236,908,817 Cost of Sales (151,596,394) (187,331,866) - GROSS PROFIT 36,184,342 49,576,951 - Other Income 759,077 12,033,279 90,000 90,000 Selling and Distribution Expenses (5,942,617) (6,422,891) - Administrative Expenses (13,696,470) (21,702,496) (1,316,475) (3,211,996) RESULT FROM OPERATING ACTIVITIES 17,304,332 33,484,843 (1,226,475) (3,121,996) Finance Cost (15,550,008) (33,417,109) (7,892,776) (19,028,366) Finance Income 1,613,310 4,882,755 1,613,310 4,882,755 NET FINANCE COST (13,936,698) (28,534,354) (6,279,466) (14,145,611) PROFIT AFTER FINANCE COST 3,367,634 4,950,488 (7,505,942) (17,267,607) Share of Associate 's Profit PROFIT BEFORE TAX 3,367,634 4,950,488 (7,505,942) (17,267,607) Tax Expense (16,133) (3,048,828) (16,133) (48,828) PROFIT FROM CONTINUING OPERATION 3,351,501 1,901,660 (7,522,075) (17,316,435) DISCONTINUING OPERATION Profit (loss) from Discontinuing Operation (Net of Tax) PROFIT FOR THE PERIOD 3,351,501 1,901,660 (7,522,075) (17,316,435) OTHER COMPREHENSIVE INCOME Surplus on revaluation of property,plant and equipment Net Changing Fair Value of Available for Sale Financial Assets 1,553,199 5,006,329 1,303,199 5,006,329 Defined Benefit Plan Actuarial Gains / (losses) OTHER COMPREHENSIVE INCOME FOR THE PERIOD 1,553,199 5,006,329 1,303,199 5,006,329 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 4,904,700 6,907,990 (6,218,876) (12,310,106) Total Profit for The Year Attributable To: Equity Holder of The Parent (1,981,793) (5,929,226) (7,522,075) (17,316,435) Non Controlling Interest 5,333,294 7,830,887 0 Profit for The Period 3,351,501 1,901,661 (7,522,075) (17,316,435) Total Other Comprehensive Income Attributable To: Equity Holders of The Parent 1,553,199 5,006,329 1,303,199 5,006,329 Non Controlling Interest 0 0 0 0 1,553,199 5,006,329 1,303,199 5,006,329 Earnings Per Share - Basis (0.002) (0.01) (0.01) (0.05)
STATEMENT OF CHANGES IN EQUITY (Expressed in Sri Lankan Rupees) FOR THE PERIOD ENDED 30TH JUNE 2017 Stated Reserve Minority Retained Total In LKR capital Interest profit / (loss) Balance as at 01st of April 2016 714,508,200 74,806,634 - - 41,734,211 831,049,045 Impacts of changers in accounting policies - - - - - Prior year adjustments - Retirement benefit under provision - - - - - Restated Balance at 01st of April 2016 714,508,200 74,806,634-41,734,211 831,049,045 Profit - - (17,316,435) (17,316,435) Revaluation of property plant & equipment - - - - - Adjustments in Fair Value Net changing fair value of available for sale financial assets - 5,006,329 - - 5,006,329 Total comprehensive income for the period - 5,006,329 - (17,316,435) (12,310,106) Issue of shares - - - - Dividends - - - - - Total contribution by and distribution to the owners of the company - - - - - Restated Balance at 30th June 2016 714,508,200 79,812,963-24,417,776 818,738,939 Balance as at 01st of April 2017 714,508,200 63,518,582 (93,335,922) 684,690,860 Impacts of changers in accounting policies Prior year adjustments Balance at 01st of April 2017 714,508,200 63,518,582 - - (93,335,922) 684,690,860 Profit (7,522,075) (7,522,075) Revaluation of property plant & equipment - Dividends - - Net changing fair value of available for sale financial assets 1,303,199 1,303,199 Total comprehensive income for the period 1,303,199 (7,522,075) (6,218,876) Issue of shares Dividends Total contribution by and distribution to the owners of the company Balance at 30th June 2017 714,508,200 64,821,781 - - (100,857,997) 678,471,984 Group Stated Reserve Revaluation Minority Retained Total In LKR capital Surplus Interest profit / (loss) Balance as at 01st of April 2016 714,508,200 289,231,182-468,515,859 173,125,464 1,645,380,706 Impacts of changers in accounting policies - - - - - Restated Balance at 01st of April 2016 714,508,200 289,231,182-468,515,859 173,125,464 1,645,380,706 Profit - - 7,830,887 (5,929,226) 1,901,661 Surplus on revaluation of property,plant and equipment - Adjustments in Fair Value - - Adjustments in Acquisition - Changes in Aquision on 01st of July 2015 - Surplus on revaluation of property,plant and equipment - Net changing fair value of available for sale financial assets - 5,006,329-5,006,329 Total comprehensive income for the period - 5,006,329-7,830,887 (5,929,226) 6,907,990 Issue of shares - - - - - Dividends - - - - - Total contribution by and distribution to the owners of the company - - - - - Restated Balance at 30th June 2016 714,508,200 294,237,511-476,346,746 167,196,238 1,652,288,695 Balance as at 01st of April 2017 714,508,200 290,334,799 565,665,520 137,436,024 1,707,944,543 Profit 5,333,294 (1,981,793) 3,351,501 Surplus on revaluation of property,plant and equipment - Non controlling interest arised from Acquision/diverse - Dividends - Surplus on revaluation of property,plant and equipment - Net changing fair value of available for sale financial assets 1,553,199 1,553,199 Total comprehensive income for the period - 1,553,199 5,333,294 (1,981,793) 4,904,700 Issue of shares Dividends Total contribution by and distribution to the owners of the company Balance at 30th June 2017 714,508,200 291,887,998 570,998,814 135,454,231 1,712,849,243
STATEMENT OF CASH FLOW (Expressed in Sri Lankan Rupees) FOR THE PERIOD ENDED 30TH JUNE 2017 Group 30th June 2017 30th June 2016 30th June 2017 30th June 2016 Cash Flow from Operating Activities Profit/(Loss) for The period Before Tax 3,351,501 1,901,661 (7,522,075) (17,316,435) Adjustments for:- Provision for Gratuity / (Over Provision) - WHT paid Interest Expenses 12,297,589 Loss on Sale on Shares - (Profit)/Loss on sale of non current Investment Prior year adjustment Fair Value Gain on Short Term Investments - Lease Interest Charge - 111,674 111,674 Post Tax Share of Equity Accounted Associate's Profit Gratuity provision for retirement benefit obligation Depreciation of Property, Plant & Equipment 12,449,907 151,825 252,643 151,825 Amotization of Intangible Assets Operating Profit before Working Capital Changes 15,801,408 14,462,750 (7,269,432) (17,052,936) (Increase)/Decrease in Inventories (45,392,820) (14,612,108) (Increase)/Decrease in Trade & Other Receivables 20,460,078 (36,964,736) 10,500 22,501 (Increase)/Decrease in Amount Due from Related Companies 65,700,916 55,928,072 9,524,900 (9,949,876) Increase/(Decrease) in Trade & Other Payables (18,912,483) 15,403,674 325,250 (2,082,196) Increase/(decrease) in Investments in Associate Companies - Increase/(Decrease) in Amount Due to Related Companies (136,304,744) (71,155,870) (20,378,807) 24,797,811 Cash Generating from Operation (114,449,054) (51,400,968) (10,518,158) 12,788,240 Net Cash Flow from Operating Activities (98,647,646) (36,938,219) (17,787,590) (4,264,696) Cash Flow from Investment Activities Investment in Short Term Investment Sales Proceed on Sale of Shares Goodwill on acquisition Reinvestment of The Profit of The Sale of Share Investment in Short Term Investment in Subsidiaries (Increase)/Decrease in Investment (10,627,067) Investment in Equity Accounted Associates Issue of shares Acquisition of Intangible Assets 5,443 Work in Prpgress (1,759,854) Proceeds from sale of property, plant and equipment (41,681,032) 5,709,260 (10,000) Cash Flow from Investment Activities (43,435,443) 5,709,260 (10,627,067) (10,000) Cash Flow from Financing Activities Taxation (232,859) 34,758,002 17,140 18,828 Lease Installments Paid Interest bearing borrowings 99,833,111 14,093,279 (1,851,952) 4,591,486 Loans Received (Net) Deferred Tax Liabilities - Defined Benefit Plans 260,247 2,032,503 Loan payment Cash Flow from Financing Activities 99,860,499 50,883,784 (1,834,812) 4,610,313 Net Change in Cash & Cash Equivalents (42,222,590) 19,654,825 (30,249,469) 335,617 Cash & Cash Equivalents at The Beginning of The Year 44,756,390 47,279,630 17,830,274 696,954 Opening Balances of the Acquired Subsidiaries Cash & Cash Equivalents at End of The Quarter 2,533,799 66,934,455 (12,419,195) 1,032,572
Notes to the interim financial statements (In the notes all amounts are shown in Sri Lanka Rupees millions unless otherwise stated) 1. General Information Adam Investments PLC is a Public Limited domiciled in Sri Lanka. It is an investment holding company which holds shares of privately held companies operating in various industries such as manufacturingand exporting of Activated Carbons, Sharia Compliant micro financing Importing & supplying of Information Technology and total solution provider to computers and accessories, manufacturing of metal hardware items,importing and installing of Air Conditioners and importing vehicles and vehicle spare parts. The registered office of business is 264, Grandpass Road, Colombo 14. 2. Basis of preparation The condensed interim financial statements of Adam Investments PLC are for the quarter ended 30 th June 2017. They have been prepared in accordance with LKAS 34, Interim Financial Reporting. These interim financial statements have been prepared in accordance with the SLFRS standards and IFRIC interpretations issued and effective as at the time of preparing these statements. The condensed interim financial statements do not include all of the information required for full annual financial statements and have not been audited. 3. Summary of significant accounting policies The accounting policies adopted are consistent with most recent Audited Financial Statements for the year ended 31 st March 2016. 4. Events after the Reporting Period - Mrs. Danushya Chintha Mediwake Gulamhusein has resigned from the board with effect from01 st of July 2017. - Mr.Govindasamy Ramanan has resigned from the board with effect from24 th of July 2017. - Mr.Taher Abbas Gulamhusein and Mr.Gulamhusein Idris Shabbir have resigned from the board with effect from27 th of July 2017. 5. Comparatives Comparatives are provided for the statement of financial position at the date of the last year ended 31 st March 2017 and for the quarter ended 30 th June 2016. 6. Contingent Liabilities There have not beenany material changes to the contingent assets or contingent liabilities since the last annual reporting period.
7. Market Price Per Share For the Quarter ended 30 th June 2017 2017/2018 01 st Quarter 2016/2017 01 st Quarter Price (Rs) Price (Rs) Highest 0.80 2.90 Lowest 0.50 2.10 Closing 0.60 2.10 * Each AINV ordinary share was sub-divided in to two (02) Ordinary Shares on 16th January 2017. 8. Issued Share Capital The number of Shares issued and fully paid of the as at 31 st March 2017 is 898,552,400 and values of the Shares are Rs.714, 508,200. 9. Net assets per share Group 30th June 2017 30th June 2016 30th June 2017 30th June 2016 Net assets per share 0.76 1.82 1.27 2.62 * Each AINV ordinary share was sub-divided in to two (02) Ordinary Shares on 16th January 2017. DIRECTORS AND CEO S SHAREHOLDING AS AT 30 TH JUNE 2017 ANNEX B DIRECTORS AND CEO'S SHAREHOLDING AS AT 30TH JUNE 2017 NO. OF SHARES % 1 MR. A M PASQUAL 76,000 0.008 2 DR. L M F ADAMS 200,000 FIRST CAPITAL MARKETS LIMITED/ DR. L M F ADAMS 2,000,000 2,200,000 0.245 3 MR. T A GULAMHUSEIN NIL NIL 4 MR. I SHABBIR 7,467,391 MR. I SHABBIR JOINT WITH MS. F SHABBIR 6,200 7,473,591 0.832 5 MR. L W W PRIYANKARA 1,900,000 0.211 6 MR G RAMANAN Nil SEYLAN BANK PLC/MR G RAMANAN 16,666,800 16,666,800 1.855 7 MR. M I R ZAHIR NIL NIL 8 MR. W.A. ADRIAN PERERA NIL NIL
20 MAJOR SHAREHOLDERS AS AT 30TH JUNE 2017 No of Shares (%) 1 PAN ASIA BANKING CORPORATION PLC / MR. G.H.A.A.SHABBIR 369,270,400 41.096 2 DR. G.H.A.A. SHABBIR 284,651,216 31.679 3 SAMPATH BANK PLC/ DR.T.SENTHILVERL 87,101,812 9.694 4 MRS. L.N. BALDSING 32,700,000 3.639 5 SEYLAN BANK LTD/ GOVINDASAMY RAMANAN 16,666,800 1.855 6 MR. G.H.I. SHABBIR 7,467,391 0.831 7 COMMERCIAL BANK OF CEYLON PLC/CEYLON & FOREIGN TRADES PLC 5,560,000 0.619 8 MR. A.Y. TYEBKHAN 4,531,208 0.504 9 BANK OF CEYLON A/C CEYBANK UNIT TRUST 3,859,024 0.429 10 COMMERCIAL BANK OF CEYLON PLC/S.A.GULAMHUSEIN 3,168,000 0.353 11 MR. D.S. VANDORT 3,000,000 0.334 12 MR. R.E. RAMBUKWELLE 2,041,348 0.227 13 FIRST CAPITAL MARKETS LIMITED/DR.L.M.F.ADAMS 2,000,000 0.223 14 DR.A.S.WIJENAYAKA 2,000,000 0.223 15 MR. L.W.W. PRIYANKARA 1,900,000 0.211 16 MRS.R.I.L.SIMONSZ 1,750,000 0.195 17 MR.K.H.R.THILAKARATHNA 1,700,000 0.189 18 MR. M.M.A.S. HEMAMAL 1,667,110 0.186 19 MR. C.R. PERERA 1,600,000 0.178 20 MR.W.P.DHANAPALA 1,428,418 0.159 834,062,727 92.823 OTHERS 64,489,673 7.177 TOTAL 898,552,400 100.00 Public Holding Percentage as at 30 th June 2017 being13.7613%comprising of 1229shareholders.