Bogala Graphite Lanka : Interim Financial Statements as at 31st March 2024

Bogala Graphite Lanka PLC

Interim Financial Statements

For the Period ended 31st March 2024

BOGALA GRAPHITE LANKA PLC

Statement of Profit or Loss and Other Comprehensive Income

				Quarter ended 31st			Variance
				March
	For the
	2024	2023			LKR.'000	%
				LKR.'000		LKR.'000
	Revenue	482,004	353,357	128,647	36
	Cost of Sales	(273,389)	(190,674)	(82,715)	(43)
	Gross Profit	208,615	162,683				28
	45,932
	Other Income	822	590	232	39
	Net Exchange Loss	(72,141)	(70,929)	(1,212)	(2)
									(5)
	Administrative Expenses	(39,228)	(37,331)	(1,897)
	Selling and Distribution Expenses	(70,379)	(52,774)	(17,605)	(33)
	Profit from Operation				2,239			> 100%
		27,689		25,450
	Finance Income	3,068	7,612	(4,544)	(60)
	Finance Expenses	(112)	(179)	67	37
	Profit Before Tax	30,645			20,973	> 100%
	9,672
	Income Tax Expenses	(23,865)	(15,893)	(7,972)	(50)
	Profit for the year	6,780	(6,221)	13,001	> 100%
	Other Comprehensive Income
	Re-measurement of defined benefit liability	-	-	-	-
	Related tax	-			-	-
	Revaluation of freehold land	-	-	-
	Deferred tax on revaluation surplus as freehold	-	-	-	-
	land
	Other comprehensive income net of tax	-	-	-	-
	Total Comprehensive Income for the year	6,780	(6,221)			> 100%
	13,001
	Basic earnings per share (LKR)	0.07	(0.07)	0.14	> 100%

The above figures are subject to audit.

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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BOGALA GRAPHITE LANKA PLC

Statement of Financial Position

	31st March 2024	31st December 2023
As at	LKR.'000	LKR'.000
ASSETS
Property, plant and equipment	402,274	381,820
Intangible assets	166,946	167,378
Consumable biological assets	6,639	6,639
Other financial assets	3,196	323
Non-Current Assets	579,055	556,160
Inventories	330,029	372,078
Trade and Other Receivables	294,846	191,893
Advances and Prepayments	27,094	25,937
Other Financial Assets	6,816	1,920
Cash and Cash Equivalents	758,201	828,346
Current Assets	1,416,986	1,420,174
Total Assets	1,996,041	1,976,334
EQUITY
Stated Capital	102,074	102,074
Reserves	11,889	11,889
Retained Earnings	1,576,879	1,570,100
Total Equity	1,690,842	1,684,063
Liabilities
Provision for restoration	2,248	2,193
Employee Benefits	105,866	101,149
Deferred Tax Liabilities	6,386	9,123
Non-Current Liabilities	114,500	112,465
Trade and Other Payables	116,483	116,390
Current Taxation	72,824	61,407
Loans and Borrowings	1,392	2,009
Current Liabilities	190,699	179,806
Total Liabilities	305,199	292,271
Total Equity and Liabilities	1,996,041	1,976,334
Net Assets Per Share (LKR)	17.87	17.80

These financial statements have been prepared in compliance with the requirements of the Companies Act No 07 of 2007.

.………………………………………………….

Sugath Amarasinghe	(5)
Finance Director

The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved for and on behalf of the Board of Directors.

…………………………………………	……………………………………..
Director	Director
13th May 2024

The above figures are subject to audit.

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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BOGALA GRAPHITE LANKA PLC

STATEMENT OF CHANGES IN EQUITY

	Stated				Revaluation			Retained		Total Equity
For the period ended 31st March	Capital				Reserve			Earnings
						LKR.'000
	LKR.'000				LKR.'000			LKR.'000
Balance as at 1st January 2023	102,074	8,327	1,407,106
		1,517,507
Profit for the period	-	-	(6,221)		(6,221)
Other comprehensive income, net of income tax
- Actuarial loss on defined benefit plan, net of tax	-	-	-		-
- Deferred tax on revaluation surplus as freehold land	-		-	-		-
Total comprehensive income for the period	-	-	(6,221)		(6,221)
Balance as at 31st March 2023
102,074			8,327			1,400,885		1,511,286

Balance as at 1st January 2024

Profit for the period

Other comprehensive income, net of income tax

• Actuarial gain on defined benefit plan, net of Deferred tax
• Revaluation surplus of freehold land net of Deferred Tax

Total comprehensive income for the period

Balance as at 31st March 2024

102,074				11,889	1,570,099					1,684,062
-				-	6,780				6,780
-				-	-				-
-				-	-				-
-				-	-				-
-						-	6,780				6,780
102,074				11,889				1,576,879				1,690,842

The above figures are subject to audit.

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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BOGALA GRAPHITE LANKA PLC

STATEMENT OF CASH FLOW

	Period Ended 31st March	2024	2023
	LKR.'000			LKR.'000
	Cash Flows Operating Activities
	Profit Before Taxation	30,645	9,672
	Adjustments for
	Depreciation of property, plant and equipment	10,892
	9,827
	Amortization of intangible assets	431	431
	Gain on Sales of Property Plant & Equipment	(48)	0
	Interest Income	(3,068)	(7,612)
	Interest expense	112	179
	Prperty ,Plant and Equipment Written Off	-	0
	Provision for Employee Benefits	4,717	4,029
	Operating Profit before Working Capital Changes	43,681	16,526
	Change in Working Capital
	Inventories	42,049	(16,756)
	Trade and Other Receivables	(102,953)	(15,465)
	Advance and prepayments	(1,157)	(2,166)
	Other Financial Assets	(7,770)	(2,975)
	Trade and Other Payables	93	(27,599)
	Cash Generated from Operating Activities	(26,057)	(48,435)
	Current Tax Paid	(15,186)	(35,834)
	Gratuity Paid	-	(1,011)
	Net Cash Generated From Operating Activities	(41,243)	(85,280)
	Cash Flows From Investing Activities
	Interest Received	3,068	7,612
	Proceeds from sale of Property Plant & Equipments	48	-
	Acquisition of Property, Plant and Equipment	(31,345)	(21,678)
	Acquisition of Intangible Assets		(8,803)
	Net Cash Used In Investing Activities	(28,229)	(22,869)
	Cash Flows From Financing Activities
	Repayment of Lease Liabilities	(673)	(673)
	Net Cash Used in Financing Activities	(673)			(673)
	Net Increase in Cash and Cash Equivalents	(70,145)
	(108,822)
	Cash and Cash Equivalents at 1st January	828,346	829,079
	Cash and Cash Equivalents at 31st December	758,201	720,257

The above figures are subject to audit.

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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Notes to the Financial Statements

1. Reporting Entity

Bogala Graphite Lanka PLC is a limited liability Company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The registered office and the principal place of business are located at Bogala Mines, 71041 Aruggammana.

2. Basis of Preparation

The Interim Financial Statements of the company for the period ended 31st March 2024 have been prepared on the same basis as the most recent audited financial statements and are in compliance with Sri Lanka Accounting Standards - LKAS 34 Interim Financial Reporting and on, going concern basis and are provisional and unaudited.

The accounting policies have been consistently applied by the Company and, are consistent with those used in the annual report for the year ended 31st December 2023. The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be comparable with the current period.

Financial Statements are in compliance with the Companies Act No.07 of 2007, the Sri Lanka Accounting and Auditing Standards Act No.15 of 1995 and CSE Guidelines.

3. Approval of Financial Statements

The interim financial statements of the Company for the period ended 31st March 2024 were authorized by the Board of Directors on 13th May 2024.

4. Fair value measurement and related fair value disclosure

The fair value and carrying value of all the financial assets and financial liabilities, recognised during the quarter were not materially different from that disclosed in the annual report for the year ended 31st December 2023.

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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There were no transfers between different levels of fair value hierarchy or changes to assets classes classified on recurring and non-recurring basis. Valuation techniques or significant unobservable inputs used for measuring level 2 and level 3 fair values remains unchanged from 31st December 2023.

During the period under review there were no transfers in and out of level 3 financial instrument measurement and any change in fair values are captured in the statement of other comprehensive income. Fair value of the Land has been determined under the Level 3 valuation.

5. Intangible Assets

Intangible assets include exploration expenditure and software licenses. There has not been a change to recognition and measurement, and their amortization basis compared to that used in the last audited financials.

6. Inventories

No significant negative impact is expected on the selling price of processed materials or cost to complete deliveries. Further no significant impact on the net realizable value of inventory is expected.

7. Foreign Currency Transactions

The Company recognizes the foreign currency transactions in line with the LKAS 21 The Effects of Changes in Foreign Exchange Rates. Transactions in foreign currency are translated to the functional currency at exchange rates prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the spot rate prevailing at the reporting date. Foreign exchange differences arising on foreign exchange transactions are recognized in the Statement of Profit or Loss and Other Comprehensive Income. Company uses the Central Bank of Sri Lanka published exchange rates for the above purposes.

Net Exchange loss shown separately in the Statement of Profit or Loss and Other Comprehensive Income amounts to LKR 72.1Mn for the period ended 31st March 2024. Net Exchange gain for the comparative period was LKR 70.9Mn.

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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8. Related Party Transactions

			Name of the Company and its Relationship
For the period ended 31st March		Parent	Affiliate			Total
	Graphite Kropfmuhl	Qingdao Kropfmuehl
		GmbH	Graphite (Co.)
LKR'000	2024		2023	2024		2023	2024		2023

Nature of the Recurrent Transactions
Balance receivable/(payable) as at 01st January	(8,471)	(22,888)	-	-	(8,471)	(22,888)
Sale of goods/services	55,490	38,187	5,821	-	61,311	38,187
Purchase of goods/services	(36,584)	(27,862)	(488)	-	(37,072)	(27,862)
Technical service fee payments	(24,100)	(17,668)	-	-	(24,100)	(17,668)
Payment of rental on hired machine	-	2,589	-	-	-	2,589
Net settlements	15,784	12,728	(5,333)	-	10,451	12,727
Balance Receivable (Payable) for Recurrent	2,119	(14,914)	-	-	2,119	(14,914)
Transactions as at 31st March

Nature of the Non-Recurrent Transactions

There are no Non-Recurrent Transactions
Balance Receivable (Payable) for Non Recurrent	-	-	-	-	-
Transactions as at 31st March

-

Balance Receivable (Payable) for Recurrent & Non	2,119
Recurrent Transactions as at 31st March

(14,914)

-

-

2,119

(14,914)

Above balance included in

Trade receivables

Trade payables

Other payables

32,340	243	-	-	32,340	243
(19,708)	(10,167)	-	-	(19,708)	(10,167)
(10,513)		(4,990)	-	-	(10,513)	(4,990)
2,119	(14,914)	-	-	2,119	(14,914)

All related party transactions have been conducted on agreed commercial terms with the respective parties. The Company has not had any special transactions with Parent or Affiliate company which required specific agreement or arrangement to made, prior to such transactions, other than what is listed above.

Total aggregated value of the sales made to Parent Company and Affiliates are 11.5%, and 1.2% respectively.

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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9. Contingencies, capital, and other commitments

There has been no significant change in the nature of the contingencies and other commitments, as disclosed in the annual report for the year ended 31st December 2023.

10. Provision for restoration cost

The provision reflects the present value of the future estimated cost of restoration of the land once the Company extracts graphite through its activities over 44 years. The number of years is estimated based on the period over which the estimated resources are expected to be extracted. The cost is estimated periodically to reflect the best estimate at each reporting date.

There were no significant differences in the basic assumptions used in estimating the provision for the period under review in comparison to those used in the last audited accounts of 31st December 2023.

11. Events after the reporting period

There were no other material events that have taken place since 31st March 2024 that require disclosure in these Financial Statements.

12. Non-Financial Information

12.1. Public Share Holding

Percentage of shares held by the public and the number of public shareholders is as given below:

Number of Shares represented by the Stated Capital (31-03-2024)	94,632,904
Total No of Shareholders	10,541
Number of Shares held by Public	12,731,439
Number of Public shareholders	10,539
Percentage of shares held by the Public	13.45%
Market capitalisation of LKR	4,883,057,846
Float adjusted market capitalisation of LKR	656,771,280

In terms of the rule 7.14.1(b) of the Listing Rules if the Colombo Stock Exchange, the Company Qualifies under option Two of the minimum public holding requirment.

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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12.2.	Net assets per share
	For the Quarter ended 31st March	2024	2023
Net Assets Value per share (LKR)	17.87	15.97
Quick Asset Ratio	5.70:1	5.10:1

12.3. Market price per share

The Company's highest, lowest, and last traded market price is as given below.

For the Quarter ended 31st March	2024	2023
Highest price per share (LKR)	60.00	69.50
(14/03/ 2024)	(21/03/ 2023)
Lowest price per share (LKR)	45.00	45.00
(04/03/ 2024)	(09/01/ 2023)
Last Traded Price (Closing Price) (LKR)	51.60	65.00

12.4.	Shareholding of Directors
	Name	31-03-2024	31-03-2023
Ms. M. C. Pietersz - Chairperson	Nil	Nil
Mr. T. A. Junker - Deputy Chairperson	Nil	Nil
Mr. A. P. Jayasinghe - CEO/Managing Director	Nil	Nil
Ms. U. Neunzert - Director	Nil	Nil
Mr. A. S. R. Amarasinghe - CFO/Finance Director	Nil	Nil
Ms. A. A. Ludowyke	Nil	NA
Mr. M. S. J. D. Coorey	Nil	NA

Bogala Graphite Lanka PLC| Interim Financial Statements for Quarter ended 31st March 2024

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