INTERIM REPORT FOR THE THREE MONTHS ENDED 30TH JUNE 2017 A CARSON CUMBERBATCH COMPANY
Managers Review For the period ended 30th June 2017 Financials and portfolio performance The Ceylon Guardian portfolio is segmented into discretionary and non discretionary components. The discretionary component of the portfolio is made up of a trading portfolio and long term portfolio, which are actively managed. The non- discretionary component refers to the strategic holding. The discretionary portfolio has provided an impressive performance of 10.38% CAGR over a five year period compared to the ASPI performance of 6.32%. The three year return for the portfolio was 6.82% CAGR thereby outperforming the APSI by 4.93% CAGR. The superior performance relative to market is a result of a successfully implemented value investing strategy practiced by Guardian. 180 160 140 120 100 80 Five Year Track Record Guardian Discretionary Portfolio Guardian ASPI S&P20 CAGR : 10.38 % CAGR : 6.90 % CAGR : 6.32 % 60 June Sep Dec Mar June Sep Dec Mar June Sep Dec Mar June Sept Dec Mar June Sept Dec Mar June 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 For the period under review, the portfolio was mainly buying into stocks such as Tokyo Cement and Softlogic Holdings. Tokyo Cement has shown strong growth in the recent past with recent capacity expansions coming on line. Demand for cement is growing through infrastructure development and demand for housing. We expect the company to continue to perform well with continued cost management exercises and strong demand. We continue to invest in Softlogic, as management continues to strengthen its efforts on core sectors of retail, healthcare and financial services. We expect the company to benefit in the long term as its businesses grow and eventually begin to marginalize debt levels. The discretionary portfolio remains largely exposed to the banking, finance & insurance sector, food & beverage sector and diversified sector. -Page 1-
As at As at 30- Jun-17 Change 30-Jun-17 31-Mar-17 (Dividend % adjusted) Dividend adjusted performance Discretionary portfolio (Rs. 000) * 14,413,008 13,078,794 10.20% 14,470,224 10.64% Total Portfolio (Rs. 000)* 19,647,244 18,396,828 6.80% 19,704,460 7.11% ASPI (Points) 6,747.07 6,061.94 11.30% 11.30% S&P 20 (Points) 3,933.51 3,438.88 14.38% 14.38% *After adding back the total cash outflow from the distribution of dividend by the Group which was Rs. 57.22 Mn during the period. Our successful strategy which has prevailed for well over a decade remains focused on a bottom up investment selection where it is very much investee company focused with a bias on medium to long term stock picking. The total portfolio appreciated from Rs. 18.39 Bn to Rs. 19.65 Bn during the period of review. Ceylon Guardian Investment Trust PLC reported a consolidated profit after tax of Rs. 254.29 Mn for the period of three months ended 30 th June 2017, compared to a profit of Rs. 114.45 Mn reported for the same period last year. As at end June 2017 the Group s earnings per share stood at Rs. 2.08 and Net Asset Value when the portfolio is valued at market prices was Rs. 184.91 per share, an increase of 6.6% for the period. This highlights a steep discount of 44% in the traded market price per share of Rs. 103.70. As at 30/06/2017 31/03/2017 Change % ASPI 6,747.07 6,061.94 11.3 NAV per share (Rs.) 184.91 173.53 6.6 Market price per share (Rs.) 103.70 119.70 (13.4) Discount of NAV to market price per share 44% 31% Update on the market The All Share Price Index provided gains over 3 consecutive months to provide a return of 11.3% for the quarter ending June 2017. Average daily turnover for the period indicated improved activity levels at Rs. 1.1 bn. Much of the positive momentum was brought about by foreign net buying amounting to Rs. 22 billion. A global demand for risk assets resulted in emerging and frontier markets benefitting from capital inflows. Domestic institutional and retail investors remained relatively inactive awaiting macroeconomic pressures to alleviate. Market earnings are expected to increase by a moderate 10% and 8% for FY 2018 and FY 2019 with tight monetary policy currently in place resulting in lower economic activity. The historical PER of the Colombo Stock Exchange was recorded at 11.48x as at 30 th June 2017 revealing that the CSE remains undervalued compared to historical multiples. We remain confident that the CSE provides significant upside in the long term return investors. The Macroeconomic outlook is gradually beginning to improve with focus by relevant officials on the key sensitive areas. Fiscal consolidation continues to improve and the implementation of the new Inland Revenue Act will see further progress made on this front. External debt repayment capacity has improved with gross official reserves of improving to USD 5 billion as at 30 th June 2017. Infrastructure related projects are also underway along with a renewed effort on trade agreements with key partner countries. However, concerns still remain with respect to overall debt to GDP levels, inflation and attraction of FDI. -Page 2-
Private Equity and Unit Trust Deal flow continued to be challenging during the 1st quarter, continuing from the trend seen in the last financial year. However we are in the process of evaluating a couple of investments that have come up in the venture capital space. Avenues to exit out of two investments is being explored, and we hope to conclude the process over the next couple of quarters. A provision of Rs. 42.1 mn had to made against the investment in Swiss Institute for Service Industry Development (Pvt) Ltd due to an alleged misappropriation of funds. The unit trust business, Guardian Acuity Asset Management, through our Joint Venture with Acuity Partners has grown to Rs. 6.1 billion as at June 2017 from Rs. 4.0 billion on 31 st March 2017. However with the corporate tax shelter available for unit trusts potentially being withdrawn we will see the industry being challenged to grow. Our marketing strategy is being revamped to orient ourselves to servicing the retail market going forward. Guardian Fund Management Limited Investment Managers 02 nd August 2017 -Page 3-
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - GROUP Three months ended 30th June 2017 2016 Change % 31-03-2017 Audited Revenue 181,982 187,031 (3) 1,742,298 Impairment loss on available for sale financial assets (72,530) (11,718) 519 (198,826) Net change in fair value of fair value through profit or loss financial assets 207,425 (13,616) (1,623) (51,206) Profit on investment activities 316,877 161,697 96 1,492,266 Administrative and other operating expenses (57,480) (52,924) 9 (217,726) Profit from operations 259,397 108,773 138 1,274,540 Net finance income/(expense) (2,689) 7,968 (134) 173 Profit from operations after net finance income/(expense) 256,708 116,741 120 1,274,713 Share of profit of equity accounted investee net of tax 6,984 856 716 2,747 Profit before taxation 263,692 117,597 124 1,277,460 Income tax expense (9,398) (3,148) 199 (21,126) Profit for the period 254,294 114,449 122 1,256,334 - Other comprehensive income Items that will never be reclassified to profit or loss Actuarial gain on employee benefit obligation - - - 1,520 Items that are or may be reclassified to profit or loss Net change in fair value of available for sale financial assets 1,004,638 (1,155,294) (187) (1,180,280) Transfer of net realized gains on disposal of available for sale financial assets (2,738) (16,695) (84) (696,487) Share of other comprehensive income of equity accounted investee net of tax (5,756) 463 (1,343) 2,505 Net exchange difference on translation of foreign operations 5,722 1,702 236 14,857 Other comprehensive income / (expense) for the period 1,001,866 (1,169,824) (186) (1,857,885) Total comprehensive income / (expense) for the period 1,256,160 (1,055,375) (219) (601,551) Profit attributable to: Equity holders of the parent 184,227 95,504 93 1,028,750 Non controlling interest 70,067 18,945 270 227,584 254,294 114,449 122 1,256,334 - - - - Total comprehensive income attributable to: Equity holders of the parent 1,010,889 (863,105) (217) (469,811) Non controlling interest 245,271 (192,270) (228) (131,740) 1,256,160 (1,055,375) (219) (601,551) - - - Earnings per share (Rs.) 2.08 1.08 11.59 Dividend per share (Rs.)* - - 4.00 Change % represent the percentage change in current period's results compared to the comparative period of previous year. * Dividend per share is based on the proposed/interim dividends. Figures in brackets indicate deductions. - Page 4 -
STATEMENT OF FINANCIAL POSITION Group Company As at 30th June 2017 2016 31-03-2017 2017 2016 31-03-2017 Audited Audited ASSETS Non-current assets Property, plant and equipment 5,220 8,235 6,011 - - - Intangible assets 231,917 231,917 231,917 - - - Investment in subsidiaries - - - 2,141,799 2,141,799 2,141,799 Investment in equity accounted investee 38,158 32,995 36,929 35,000 35,000 35,000 Available for sale financial assets 15,110,347 15,084,209 13,821,686 4,230,539 3,584,667 3,755,459 Total non-current assets 15,385,642 15,357,356 14,096,543 6,407,338 5,761,466 5,932,258 Current assets Trade and other receivables 45,256 19,114 94,182 1,521 546 145,276 Current tax assets 28,992 11,504 19,269 16,169 11,440 14,303 Fair value through profit or loss financial assets 3,278,619 2,698,484 3,136,896 465,616 396,416 438,399 Cash and cash equivalents 1,272,195 514,747 1,455,298 265,124 170,743 130,153 Total current assets 4,625,062 3,243,849 4,705,645 748,430 579,145 728,131 Total assets 20,010,704 18,601,205 18,802,188 7,155,768 6,340,611 6,660,389 - EQUITY AND LIABILITIES Equity Stated capital 1,128,726 1,128,726 1,128,726 1,128,726 1,128,726 1,128,726 Capital reserves 324,685 328,399 330,441 208,660 208,660 208,660 Revenue reserves 14,963,227 13,817,066 13,946,582 5,780,587 4,968,624 5,283,876 Total equity attributable to equity holders of the parent 16,416,638 15,274,191 15,405,749 7,117,973 6,306,010 6,621,262 Non controlling interest 3,459,092 3,222,422 3,214,856 - - - Total equity 19,875,730 18,496,613 18,620,605 7,117,973 6,306,010 6,621,262 - Non-current liabilities Employee benefits 10,764 10,163 10,479 - - - Total non-current liabilities 10,764 10,163 10,479 - - - Current liabilities Trade and other payables 110,006 91,558 153,994 27,412 32,892 26,867 Current tax liabilities 287 1,162 58 - - - Bank overdraft 13,917 1,709 17,052 10,383 1,709 12,260 Total current liabilities 124,210 94,429 171,104 37,795 34,601 39,127 Total liabilities 134,974 104,592 181,583 37,795 34,601 39,127 Total equity and liabilities 20,010,704 18,601,205 18,802,188 7,155,768 6,340,611 6,660,389 - - - - - - Net assets per ordinary/deferred share - Rs. 184.91 172.04 173.53 80.18 71.03 74.58 The Statement of Financial Position as at 30th June 2017 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flow for the period then ended as disclosed in pages 4 to 8 have been drawn up from unaudited accounts. I certify that these financial statements comply with the requirements of the Companies Act No. 07 of 2007. (Sgd). V. R. Wijesinghe Head of Finance Carsons Management Services (Private) Limited. Approved & Signed on behalf of the Investment Managers, Approved & Signed on behalf of the Board, (Sgd). (Sgd). (Sgd). (Sgd). W. Y. R. Fernando (Mrs.) M. A. R. C. Cooray (Mrs.) D. C. R. Gunawardena Director Chairperson Director Guardian Fund Management Limited 2nd August 2017 - Page 5 -
STATEMENT OF CHANGES IN EQUITY - GROUP Attributable to equity Non Stated Capital Revenue holders of controlling Total capital reserves reserves the parent interest equity Balance as at 1st April 2016 1,128,726 327,936 14,680,634 16,137,296 3,414,692 19,551,988 Profit for the year - - 1,028,750 1,028,750 227,584 1,256,334 Other comprehensive income / (expense) for the year - 2,505 (1,501,066) (1,498,561) (359,324) (1,857,885) Total comprehensive income / (expense) for the year - 2,505 (472,316) (469,811) (131,740) (601,551) Cash dividend - - (266,341) (266,341) (62,045) (328,386) Effect due to change in shareholdings - - 347 347 (7,167) (6,820) Forfeiture of unclaimed dividends - - 4,258 4,258 1,116 5,374 Balance as at 31st March 2017 (Audited) 1,128,726 330,441 13,946,582 15,405,749 3,214,856 18,620,605 Balance as at 1st April 2017 1,128,726 330,441 13,946,582 15,405,749 3,214,856 18,620,605 Profit for the period - - 184,227 184,227 70,067 254,294 Other comprehensive income / (expense) for the period - (5,756) 832,418 826,662 175,204 1,001,866 Total comprehensive income / (expense) for the period - (5,756) 1,016,645 1,010,889 245,271 1,256,160 Cash dividend - - - - (1,035) (1,035) Balance as at 30th June 2017 (Unaudited) 1,128,726 324,685 14,963,227 16,416,638 3,459,092 19,875,730 - - Balance as at 1st April 2016 1,128,726 327,936 14,680,634 16,137,296 3,414,692 19,551,988 Profit for the year - - 95,504 95,504 18,945 114,449 Other comprehensive income / (expense) for the year - 463 (959,072) (958,609) (211,215) (1,169,824) Total comprehensive income / (expense) for the year - 463 (863,568) (863,105) (192,270) (1,055,375) Balance as at 30th June 2016 (Unaudited) 1,128,726 328,399 13,817,066 15,274,191 3,222,422 18,496,613 CEYLON GUARDIAN INVESTMENT TRUST PLC STATEMENT OF CASH FLOWS - GROUP For the three months ended 30th June 2017 2016 31-03-2017 Audited Cash flows from operating activities Profit before taxation 263,692 117,597 1,277,460 Adjustments for: Share of profit of equity accounted investee net of tax (6,984) (856) (2,747) Depreciation on property, plant and equipment 791 813 3,224 Employee benefits obligation 618 636 2,471 Net finance (income) / expense 2,689 (7,968) (173) Impairment loss on available for sale financial assets 72,530 11,718 198,826 Net change in fair value of fair value through profit or loss financial assets (207,425) 13,616 51,206 Operating profit before working capital changes 125,911 135,556 1,530,267 (Increase) / decrease in trade and other receivables 48,926 36,586 (38,482) Net increase in investments (293,590) (597,241) (702,606) Increase / (decrease) in trade and other payables 12,193 (61,691) (59,728) Cash generated from / (used in) operations (106,560) (486,790) 729,451 Employee benefit paid (333) - - Income tax paid (18,892) (4,229) (31,076) Net cash generated from / (used in) operating activities (125,785) (491,019) 698,375 Cash flows from investing activities Acquisition of property, plant and equipment - (234) (421) Finance Income 149 8,082 641 Net cash generated from investing activities 149 7,848 220 Cash flows from financing activities Dividend paid - - (261,958) Dividend paid to non-controlling interest (57,216) (50,721) (51,302) Redemption of units - - (6,820) Finance expense paid (2,838) (114) (468) Net cash used in financing activities (60,054) (50,835) (320,548) Net increase / (decrease) in cash and cash equivalents (185,690) (534,006) 378,047 Cash and cash equivalents at the beginning of the period 1,438,246 1,045,342 1,045,342 Net exchange differences on translation of foreign operations 5,722 1,702 14,857 Cash and cash equivalents at the end of the period 1,258,278 513,038 1,438,246 Statement of cash and cash equivalents Short-term deposits 1,240,582 508,580 1,432,674 Cash at bank 31,613 6,167 22,624 Total cash and cash equivalents 1,272,195 514,747 1,455,298 Bank overdrafts (13,917) (1,709) (17,052) Net cash and cash equivalents for the purpose of statement of cash flows 1,258,278 513,038 1,438,246 - - - Figures in brackets indicate deductions. - Page 6 -
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY Three months ended 30th June 2017 2016 Change % 31-03-2017 Audited Revenue 37,174 59,393 (37) 510,249 Impairment loss on available for sale financial assets - (5,859) (100) (103,611) Net change in fair value of fair value through profit or loss financial assets 26,569 10,860 145 1,870 Profit on investment activities 63,743 64,394 (1) 408,508 Administrative and other operating expenses (24,502) (23,194) 6 (90,802) Profit from operations 39,241 41,200 (5) 317,706 Finance expense - (47) (100) (56) Profit before taxation 39,241 41,153 (5) 317,650 Income tax expense (748) (1,158) (35) (3,678) Profit for the period 38,493 39,995 (4) 313,972 - Other comprehensive income Net change in fair value of available for sale financial assets 460,956 60,681 660 356,164 Transfer of realized gains on disposal of available for sale financial assets (2,738) (3,170) (14) 6,722 Other comprehensive income for the period 458,218 57,511 697 362,886 Total comprehensive income for the period 496,711 97,506 409 676,858 Earnings per share (Rs.) 0.43 0.45 3.54 Dividend per share (Rs.)* - - 4.00 Change % represent the percentage change in current period's results compared to the comparative period of previous year. * Dividends per share is based on the proposed / interim dividends. Figures in brackets indicate deductions. - Page 7 -
STATEMENT OF CHANGES IN EQUITY - COMPANY Stated Capital Revenue Total capital reserves reserves equity Balance as at 1st April 2016 1,128,726 208,660 4,871,118 6,208,504 Profit for the year - - 313,972 313,972 Other comprehensive income for the year - - 362,886 362,886 Total comprehensive income for the year - - 676,858 676,858 Cash dividend - - (266,341) (266,341) Forfeiture of unclaimed dividends - - 2,241 2,241 Balance as at 31st March 2017 (Audited) 1,128,726 208,660 5,283,876 6,621,262 Balance as at 1st April 2016 1,128,726 208,660 5,283,876 6,621,262 Profit for the period - - 38,493 38,493 Other comprehensive income for the period - - 458,218 458,218 Total comprehensive income for the period - - 496,711 496,711 Balance as at 30th June 2017 (Unaudited) 1,128,726 208,660 5,780,587 7,117,973 Balance as at 1st April 2016 1,128,726 208,660 4,871,118 6,208,504 Profit for the period - - 39,995 39,995 Other comprehensive income for the period - - 57,511 57,511 Total comprehensive income for the period - - 97,506 97,506 Balance as at 30th June 2016 (Unaudited) 1,128,726 208,660 4,968,624 6,306,010 CEYLON GUARDIAN INVESTMENT TRUST PLC STATEMENT OF CASH FLOWS - COMPANY For the three months ended 30th June 2017 2016 31-03-2017 Audited Cash flows from operating activities Profit before taxation 39,241 41,153 317,650 Adjustments for: Finance expense - 47 56 Impairment loss on available for sale financial assets - 5,859 103,611 Net change in fair value of fair value through profit or loss financial assets (26,569) (10,860) (1,870) Operating profit before working capital changes 12,672 36,199 419,447 Increase / (decrease) in trade and other receivables 143,755 112,541 (32,189) Net increase in investments (17,510) (273,852) (287,994) Increase in trade and other payables 545 8,524 357 Cash generated from / (used in) operations 139,462 (116,588) 99,621 Income tax paid (2,614) (1,155) (6,538) Net cash generated from / (used in) operating activities 136,848 (117,743) 93,083 Cash flows from financing activities Dividend paid - - (261,958) Finance expense paid - (47) (56) Net cash used in financing activities - (47) (262,014) Net increase / (decrease) in cash and cash equivalents 136,848 (117,790) (168,931) Cash and cash equivalents at the beginning of the period 117,893 286,824 286,824 Cash and cash equivalents at the end of the period 254,741 169,034 117,893 Statement of cash and cash equivalents Short-term deposits 262,092 168,204 128,593 Cash at bank 3,032 2,539 1,560 Total cash and cash equivalents 265,124 170,743 130,153 Bank overdraft (10,383) (1,709) (12,260) Net cash and cash equivalents for the purpose of statement of cash flows 254,741 169,034 117,893 - - - Figures in brackets indicate deductions. - Page 8 -
NOTES TO THE INTERIM FINANCIAL STATEMENTS (All figures are in Sri Lankan Rupees '000 unless otherwise stated). 1 Basis of Preparation of Interim Financial Statements The Interim Financial Statements of the Company and the Group have been prepared in consistence with the accounting policies and methods applied for the year ended 31st March 2017. These Interim Financial Statements are in compliance with Sri Lanka Accounting Standard - "Interim Financial Reporting" ( LKAS 34 ). Further, the provision of the Companies Act No. 7 of 2007 have been considered in preparing the Interim Financial Statements of the Company and the Group. 2 Revenue Company Group For the three months ended 30.06.2017 30.06.2016 30.06.2017 30.06.2016 Dividend income 24,273 44,698 80,923 138,536 Interest income 5,776 6,093 39,889 14,528 Net gain from disposal of fair value through profit or loss financial assets - - 50,934 4,761 Net gain from disposal of available for sale financial assets 7,125 8,602 7,124 26,790 Portfolio Management fees - - 3,112 2,416 37,174 59,393 181,982 187,031 - - - - 3 Profit on portfolio activities The Group recorded a profit of Rs. 316.87 Mn and the Company recorded a profit of Rs. 63.74 Mn on investments activities for the three months ended 30th June 2017. 4 Valuation of investment portfolio Fair value Fair value Fair value 4.1 Group As at As at As at 30.06.2017 30.06.2016 31.03.2017 Summary of investment portfolio Available for sale financial assets (4.1.1) 15,110,347 15,084,209 13,821,686 Fair value through profit or loss financial assets (4.1.2) 3,278,619 2,698,484 3,136,896 18,388,966 17,782,693 16,958,582 4.1.1 Available for sale financial assets Fair Fair Fair value value value as at as at as at 30.06.2017 30.06.2016 31.03.2017 Sector Bank, Finance & Insurance 4,712,626 5,130,537 4,155,999 Beverage, Food & Tobacco 1,200,361 1,389,914 982,140 Constructions & engineering 166,423 142,464 154,120 Diversified 1,146,889 492,456 1,094,753 Footwear & Textiles 322,368 394,254 301,228 Healthcare - 15,425 - Hotels & Travels 183,422 275,774 169,907 Manufacturing 1,094,837 505,726 602,730 Motors - 27 - Oil Palms 5,234,236 5,824,901 5,318,034 Telecommunications 744,443 629,584 701,017 Unit trusts 45,924 123,195 40,822 14,851,529 14,924,257 13,520,750 Unquoted investments 258,818 159,952 300,936 Total investment in available for sale financial assets 15,110,347 15,084,209 13,821,686 4.1.2 Fair value through profit or loss financial assets Fair Fair Fair value value value as at as at as at Sector 30.06.2017 30.06.2016 31.03.2017 Bank, Finance & Insurance 773,218 633,506 665,605 Beverage, Food & Tobacco 22,587 194,745 20,172 Constructions & engineering 102,140 98,373 95,774 Diversified 482,248 418,315 441,187 Footwear & Textiles 14,965 23,587 14,787 Healthcare 51,790 57,670 49,077 Hotels & Travels 53,017 77,829 50,449 Land & Property 13,650 11,450 14,140 Manufacturing 367,502 145,713 270,991 Power & Energy 37,848 12,326 21,332 Telecommunications 84,008 70,887 78,393 Trading - 5,931 - Unit trusts 1,275,646 948,152 1,414,989 Total investment in fair value through profit or loss financial assets 3,278,619 2,698,484 3,136,896 - - - The total fair value of the investment portfolio of the Group including cash and cash equivalents amounts to Rs. 19.65 Bn as at 30th June 2017 (2016 - Rs. 18.29 Bn). - Page 9 -
NOTES TO THE INTERIM FINANCIAL STATEMENTS (All figures are in Sri Lankan Rupees '000 unless otherwise stated). 4 Valuation of Investment Portfolio (Continued) Fair Fair Fair 4.2 Company value value value As at as at as at 30.06.2017 30.06.2016 31.03.2017 Summary of investment portfolio Available for sale financial assets (4.2.1) 4,230,539 3,584,667 3,755,459 Fair value through profit or loss financial assets (4.2.2) 465,616 396,416 438,399 4,696,155 3,981,083 4,193,858 4.2.1 Available for sale financial assets Fair Fair Fair value value value As at as at as at Sector 30.06.2017 30.06.2016 31.03.2017 Bank, Finance & Insurance 1,924,134 1,688,124 1,731,428 Beverage, Food & Tobacco 931,081 927,234 869,474 Constructions & engineering 55,512 47,520 51,408 Diversified 415,458 117,180 355,663 Footwear & Textiles 146,629 193,731 148,019 Healthcare - 15,425 - Hotels & Travels 97,178 138,095 90,017 Manufacturing 421,526 218,688 283,809 Motors - 27 - Telecommunications 185,645 160,893 174,816 Unit Trusts 22,962 50,573 20,411 4,200,125 3,557,490 3,725,045 Unquoted investments 30,414 27,177 30,414 Total investments in available for sale financial assets 4,230,539 3,584,667 3,755,459 4.2.2 Fair value through profit or loss financial assets Fair Fair Fair value value value As at as at as at Sector 30.06.2017 30.06.2016 31.03.2017 Bank, Finance & Insurance 98,589 89,437 91,332 Beverage, Food & Tobacco - 27,441 - Diversified 84,969 99,031 72,664 Healthcare 22,715 6,380 21,525 Hotels & Travels 9,242 10,681 9,288 Power & Energy 6,169-5,963 Telecommunications 12,000 10,400 11,300 Unit trusts 231,932 153,046 226,327 Total investments in fair value through profit or loss financial assets 465,616 396,416 438,399 - - - As at As at As at 5 Price Index movements 30.06.2017 30.06.2016 31.03.2017 All Share Price Index (points) 6,747 6,283 6,062 S&P SL 20 Index (points) 3,934 3,300 3,439 6 Events after the reporting period After satisfying the solvency tests in accordance with Section 57 of the Company s Act, No. 7 of 2007, The Directors have recommended the payment of a first and final dividend of Rs.4/- (2016 - Rs.3/-) per Ordinary and Deferred share for the year ended 31st March 2017 amounting to Rs.355,121,420/- (2016 - Rs. 266,341,065/-) which was approved at the Annual General Meeting held on 26th July 2017. According to Sri Lanka Accounting Standard (LKAS 10) - Events after the reporting period the proposed final dividend has not been recognised as a liability as at 30th June 2017. Subsequent to the reporting period, no circumstances have arisen which would require adjustments to or disclosure in the financial statements, other than the above. 7 Commitments and contingencies 7.1 Capital expenditure commitments No material capital commitments exist as at the reporting date. 7.2 Contingencies There were no material contingent liabilities as at the reporting date. 8 Comparative Figures Comparative figures have been rearranged where necessary to conform to the classification and presentation as at 30th June 2017. - Page 10 -
NOTES TO THE INTERIM FINANCIAL STATEMENTS (All figures are in Sri Lankan Rupees '000 unless otherwise stated). 9 Liabilities for Expenditure There were no liabilities for management fees or any similar expenditure not provided for in the interim financial statements. 10 Stated Capital Stated Capital of the Company amounted to Rs.1,128.7Mn which consists of 82,978,868 Ordinary Shares and 5,801,487 Fully paid Deferred Shares. 11 Related party transactions Group Company For the three months ended 30th June 2017 2016 2017 2016 Transactions with subsidiaries Dividends received - - 5,423 - Portfolio management fee paid - - 3,900 3,401 Business development fee paid - - 7,000 7,000 Transactions with jointly controlled entity Portfolio management fee received 1,800 1,200 - - Transactions with affiliate companies Dividends received - - - - Expenses on CSR activities - - - - Receiving of services 11,828 8,473 5,590 2,946 12 Twenty Major Shareholders as at 30th June 2017 - Ordinary shares Name of the Shareholder No. of Shares % 1 Carson Cumberbatch PLC A/C No.2 55,723,635 67.15 2 Employees Provident Fund 2,969,515 3.58 3 Thurston Investments Limited 2,881,608 3.47 4 GF Capital Global Limited 1,617,666 1.95 5 Mellon Bank N.A.-Commonwealth of Massachusetts 1,374,657 1.66 6 Miss G.I.A. De Silva 877,611 1.06 7 Mr. G.J.W. De Silva 877,232 1.06 8 Mrs. M.L. De Silva 866,837 1.04 9 Miss M.P. Radhakrishnan 686,026 0.83 10 Miss A. Radhakrishnan 686,026 0.83 11 Mr. R. Maheswaran 685,016 0.83 12 Mr. K.C. Vignarajah 623,408 0.75 13 Mr. H.A. Van Starrex 595,491 0.72 14 Employees Trust Fund Board 490,998 0.59 15 The Ceylon Desiccated Coconut And Oil Company Pvt 386,550 0.47 16 Waldock Mackenzie Ltd/Mr. M.A.N. Yoosufali 375,200 0.45 17 Miss R.H. Abdulhussein 358,502 0.43 18 Miss G.N.A. De Silva 353,250 0.43 19 Mr. O.D. Liyanage 267,368 0.32 20 Sinharaja Hills Plantation Pvt Limited 254,861 0.31 13 Public Holding Ordinary Shares of the Company held by the public as at 30th June 2017 are as follows; Number of public shareholders 1,592 Percentage of public holding 32.70% 14 Directors Shareholding as at 30th June 2017 No. of shares Mrs. M.A.R.C. Cooray - Mr. D. C. R. Gunawardena 257 Mr. V. M. Fernando - Mr. K. Selvanathan - Mr. C. W. Knight - Mr.T. C. M. Chia - Mrs. W.Y.R. Fernando - 15 Investor Information Market Performance - Ordinary Shares For the three months ended 30.06.2017 Market value per share (Rs.) 103.70 Highest price per share (Rs.) 112.90 Lowest price per share (Rs.) 93.50 Market capitalization (Rs. thousands) 8,604,909 - Page 11 -
Corporate Information Name of Company Ceylon Guardian Investment Trust PLC (A Carson Cumberbatch Company) Domicile and Legal Form Ceylon Guardian Investment Trust PLC is a Public Quoted Company with limited liability domiciled in Sri Lanka. The Company was incorporated in Sri Lanka in 1951. Company Registration No. PQ 52 Principal Activity and Nature of Operations During the period, the principal activity of the Company was holding and managing of an investment portfolio. Parent and Ultimate Parent Entities In the opinion of the Director s Carson Cumberbatch PLC is the Parent Company of Ceylon Guardian Investment Trust PLC and Bukit Darah PLC is the Ultimate Parent and Controlling entity of Ceylon Guardian Investment Trust PLC Directors Mrs.M.A.R.C. Cooray (Chairperson) (Appointed Chairperson w.e.f. 1st September 2016) Mr. D. C. R. Gunawardena Mr.V. M. Fernando Mr.K. Selvanathan Mr. C.W. Knight Mr.T.C.M. Chia Mrs. W.Y.R. Fernando (Appointed Director w.e.f. 15th August 2016) Number of Employees The Company did not have any employees of its own during the period under review. Bankers Standard Chartered Bank HSBC Commercial Bank of Ceylon PLC Deutsche Bank AG Colombo Hatton National Bank PLC Auditors Messrs. KPMG Chartered Accountants, No. 32A, Sir Mohamed Macan Markar Mawatha, Colombo 3. Investment Managers Guardian Fund Management Limited No. 61, Janadhipathi Mawatha, Colombo 1. Tele: +94-11-2039200 Fax: +94-11-2439777 Managers & Secretaries Carsons Management Services (Private) Limited, No. 61, Janadhipathi Mawatha, Colombo 1. Tele: +94-11-2039200 Fax: +94-11-2039300 Registered Office and Principal Place of Business No. 61, Janadhipathi Mawatha, Colombo 1. Tele: +94-11-2039200 Fax: +94-11-2039300 Corporate Website www.carsoncumberbatch.com