Ceylon Investment : CINV - Interim Financials 30 June 2022

Ceylon

Investment PLC

A Carson Cumberbatch Company

Interim report for the three months ended 30th June 2022

CEYLON INVESTMENT PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (All figures are in Sri Lankan Rupees Thousands)

	Three months ended
	30th June
	2022	2021	Change %
Revenue	19,590	47,085	(58)
Net change in fair value through profit or loss financial assets	(311,116)	118,251	(363)
Profit / (loss) on investment activities	(291,526)	165,336	(276)
Administrative and other operating expenses	(16,726)	(15,028)	11
Profit / (loss) from operations	(308,252)	150,308	(305)
Finance expense	(2,543)	(52)	4,790
Profit / (loss) from operations after finance expense	(310,795)	150,256	(307)
Share of profit / (loss) of equity accounted investees, net of tax	(203,811)	42,622	(578)
Profit / (loss) before taxation	(514,606)	192,878	(367)
Income tax expense	(10,623)	(3,039)	250
Profit / (loss) for the period	(525,229)	189,839	(377)
Other comprehensive income
Items that are or may be reclassified to profit or loss
Share of other comprehensive expense of equity
accounted investees, net of tax	(509,870)	(410,126)	24
Other comprehensive expense for the period	(509,870)	(410,126)	24
Total comprehensive expense for the period	(1,035,099)	(220,287)	370
Earnings / (loss) per share (Rs.)	(5.23)	1.89
Dividend per share (Rs.)*	-	-

* Dividend per share is based on the proposed / interim dividends.

Figures in brackets indicate deductions.

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CEYLON INVESTMENT PLC

STATEMENT OF FINANCIAL POSITION

(All figures are in Sri Lankan Rupees Thousands)

	As at	As at
	30.06.2022	31.03.2022
	(Unaudited)	(Adjusted)
ASSETS
Non-current assets
Investment in equity accounted investees	5,226,059	5,967,379
Investment in fixed deposits	227,115	-
Total non-current assets	5,453,174	5,967,379
Current assets
Trade and other receivables	102,828	35,280
Fair value through profit or loss financial assets	1,735,831	2,274,233
Investment in unit trusts	79,235	98,540
Investment in fixed deposits	392,294	280,346
Cash and cash equivalents	611,874	736,108
Total current assets	2,922,062	3,424,507
Total assets	8,375,236	9,391,886
EQUITY AND LIABILITIES	-
Equity
Stated capital	838,033	838,033
Capital reserves	187,141	187,141
Revenue reserves	7,093,573	8,203,930
Total equity	8,118,747	9,229,104
Current liabilities	-
Trade and other payables	30,140	124,591
Current tax payable	24,257	38,191
Short term borrowings	202,092	-
Total current liabilities	256,489	162,782
Total liabilities	256,489	162,782
Total equity and liabilities	8,375,236	9,391,886
	-	-
Net assets value per share (Rs.)	80.91	91.07

The Statement of Financial Position as at 30th June 2022 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the period then ended as disclosed in pages 1 to 4 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

Director - Finance

Carsons Management Services (Private) Limited

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

Approved and Signed on behalf of the Investment Managers,	Approved and Signed on behalf of the Board,
(Sgd).	(Sgd).	(Sgd).
K. Selvanathan	M.A.R.C. Cooray (Mrs.)	D.C.R. Gunawardena
Director	Chairperson	Director
Guardian Fund Management Limited

10th August 2022

Colombo

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CEYLON INVESTMENT PLC

STATEMENT OF CHANGES IN EQUITY

(All figures are in Sri Lankan Rupees Thousands)

	Stated	Capital	Revenue	Total
	capital	reserves	reserves	equity
Balance as at 1st April 2022 (Adjusted)				-
838,033	187,141	8,203,930	9,229,104
Loss for the period	-	-	(525,229)	(525,229)
Other comprehensive expense for the period	-	-	(509,870)	(509,870)
Total comprehensive expense for the period	-	-	(1,035,099)	(1,035,099)
Dividend	-	-	(75,258)	(75,258)
Balance as at as at 30 June 2022 (Unaudited)	838,033	187,141	7,093,573	8,118,747
As at 31 March 2021	838,033	187,141	8,384,740
9,409,914
Surcharge Tax for the year of assessment 2020/21*	-	-	(48,531)	(48,531)
As at 1 April 2021 (Adjusted)	838,033	187,141	8,336,209	9,361,383
Profit for the period	-	-	189,839	189,839
Other comprehensive expense for the period	-	-	(410,126)	(410,126)
Total comprehensive expense for the period	-	-	(220,287)	(220,287)
Balance as at 30 June 2021 (Adjusted)	838,033	187,141	8,115,922	9,141,096

*As per the provisions of Surcharge Tax Act No. 14 of 2022, although the Company did not become liable to pay surcharge tax as a stand-alone entity, the Company is liable for surcharge tax on the basis that the Company is part of the Carson Cumberbatch PLC group, of which the aggregate taxable income exceeded the threshold as stipulated in the aforesaid Act.

Accordingly, the Company was liable for a surcharge tax of Rs. 32,974,304/- out of the taxable income of Rs. 131,897,216/- pertaining to the year of assessment 2020/21. Also, an associate Company of Ceylon Investment PLC was liable for a surcharge tax of Rs. 31,144,734/- out of the taxable income of Rs. 124,578,935/- . The surcharge tax liability was paid in two equal installments on 18th April 2022 and 18th July 2022.

According to the Act, the surcharge tax shall be deemed to be an expenditure in the financial statements relating to the year of assessment which commenced on 1st April 2020. The expense of surcharge tax is accounted in accordance with 'Statement of Alternative Treatment on Accounting for Surcharge Tax levied under the Surcharge Tax Act No. 14 of 2022' issued by the Institute of Chartered Accountants of Sri Lanka on 22nd April 2022.

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CEYLON INVESTMENT PLC

STATEMENT OF CASH FLOWS

(All figures are in Sri Lankan Rupees Thousands)

For the three months ended 30th June	2022	2021
Cash flows from operating activities
Profit/(loss) before taxation	(514,606)	192,878
Adjustments for:
Net change in fair value through profit or loss financial assets	311,116	(118,251)
Finance expense	2,543	52
Share of profit / (loss) of equity accounted investees, net of tax	203,811	(42,622)
Operating profit before changes in working capital	2,864	32,057
Increase in trade and other receivables	(67,548)	(48,345)
Decrease / (increase) in investments	246,591	(74,748)
Decrease / (increase) in fixed deposits	(339,063)	63,027
Decrease in trade and other payables	(101,437)	(4,868)
Cash used in operations	(258,593)	(32,877)
Current tax paid	(8,070)	(6,540)
Surcharge tax paid	(16,487)	-
Net cash used in operating activities	(283,150)	(39,417)
Cash flows from investing activities
Investments in equity accounted investees	-	(1,900)
Dividend received from equity accounted investees	27,639	-
Net cash generated from / (used in) investing activities	27,639	(1,900)
Cash flows from financing activities
Finance expense paid	(451)	(52)
Short term borrowings (net movement)	200,000	-
Dividend paid	(68,272)	(2)
Net cash generated from (used in) financing activities	131,277	(54)
Net decrease in cash and cash equivalents during the period	(124,234)	(41,371)
Cash and cash equivalents at the beginning of the period	736,108	456,498
Cash and cash equivalents at the end of the period	611,874	415,127
Statement of cash and cash equivalents	-	-
Placements with banking institutions	100,602	279,588
Securities purchased under resale agreements	100,630	12,281
Cash at bank	410,642	123,258
Cash and cash equivalents for the cash flow statement purposes	611,874	415,127

-

Figures in brackets indicate deductions.

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