Ceylon Investment : CINV - Interim Financials 31 December 2022

Ceylon Investment PLC

Statement of Profit or Loss and Other Comprehensive Income

(All figures are in Sri Lankan Rupees Thousands)

		Three months ended		Nine months ended
		31st December			31st December
		2022	2021	Change %		2022	2021	Change %
Revenue	80,040	67,701	18	180,468	204,131	(12)
Net change in fair value through profit or loss
financial assets	(164,558)	146,252	(213)	(19,796)	79,583	(125)
Profit/(loss) on investment activities	(84,518)	213,953	(140)	160,672	283,714	(43)
Administrative and other operating expenses	(17,868)	(10,572)	69	(51,479)	(39,297)	31
Profit/(loss) from operations	(102,386)	203,381	(150)	109,193	244,417	(55)
Finance expense	(16,145)	-	100	(32,923)	(101)	32,497
Profit/(loss) from operations after finance expense	(118,531)	203,381	(158)	76,270	244,316	(69)
Share of profit/(loss) of equity accounted investees,
net of tax	(112,291)	126,765	(189)	19,575	110,518	(82)
Profit/(loss) before taxation	(230,822)	330,146	(170)	95,845	354,834	(73)
Income tax expense	(13,842)	(3,002)	361	(32,155)	(11,316)	184
Profit/(loss) for the period	(244,664)	327,144	(175)	63,690	343,518	(81)
Other comprehensive income
Items that are or may be reclassified to profit or loss
Share of other comprehensive income / (expense) of
equity accounted investees, net of tax	(129,521)	942,220	(114)	(560,713)	744,232	(175)
Other comprehensive income/(expense) for the
period	(129,521)	942,220	(114)	(560,713)	744,232	(175)
Total comprehensive income /(expense) for the
period	(374,185)	1,269,364	(129)	(497,023)	1,087,750	(146)
Earnings / (loss) per share (Rs.)	(2.44)	3.26		0.63	3.42
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	31.03.2022
	31.12.2022	(Audited)
ASSETS
Non-current assets
Investment in equity accounted investees	5,398,601	5,982,936
Investment in fixed deposits	1,188,378	-
Total non-current assets	6,586,979	5,982,936
Current assets
Trade and other receivables	4,092	35,280
Fair value through profit or loss financial assets	1,790,323	2,274,233
Investment in unit trusts	48,668	98,540
Investment in fixed deposits	330,547	280,346
Cash and cash equivalents	130,043	736,108
Total current assets	2,303,673	3,424,507
Total assets	8,890,652	9,407,443
EQUITY AND LIABILITIES	-
Equity
Stated capital	838,033	838,033
Capital reserves	187,141	187,141
Revenue reserves	7,631,649	8,252,461
Total equity	8,656,823	9,277,635
Current liabilities	-
Trade and other payables	24,988	124,591
Current tax payable	7,801	5,217
Short term borrowings	201,040	-
Total current liabilities	233,829	129,808
Total liabilities	233,829	129,808
Total equity and liabilities	8,890,652	9,407,443
	-	-
Net assets value per share (Rs.)	86.27	91.55

The Statement of Financial Position as at 31st December 2022 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the period 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 February 2023
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	838,033	187,141	8,252,461	9,277,635
Surcharge Tax for the year of assessment 2020/21*	-	-	(48,531)	(48,531)
Balance as at 1st April 2022 (Adjusted)	838,033	187,141	8,203,930	9,229,104
Profit for the period	-	-	63,690	63,690
Other comprehensive expense for the period	-	-	(560,713)	(560,713)
Total comprehensive expense for the period	-	-	(497,023)	(497,023)
Dividend	-	-	(75,258)	(75,258)
Balance as at 31st December 2022	838,033	187,141	7,631,649	8,656,823
Balance as at 1st April 2021	838,033	187,141	8,384,740	9,409,914
Profit for the period	-	-	343,518	343,518
Other comprehensive income for the period	-	-	744,232	744,232
Total comprehensive income for the period	-	-	1,087,750	1,087,750
Dividend	-	-	(70,937)	(70,937)
Balance as at 31st December 2021	838,033	187,141	9,401,553	10,426,727

*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 was 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.

The expense of surcharge tax is accounted in accordance with the "Addendum to 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 10th August 2022.

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Ceylon Investment PLC

Statement of Cash Flows

(All figures are in Sri Lankan Rupees Thousands)

For the nine months ended 31st December	2022	2021
Cash flows from operating activities
Profit before taxation	95,845	354,834
Adjustments for:
Net change in fair value through profit or loss financial assets	19,796	(79,583)
Finance expense	32,923	101
Share of profit of equity accounted investees, net of tax	(19,575)	(110,518)
Operating profit before changes in working capital	128,989	164,834
Decrease in trade and other receivables	31,188	74,399
Decrease / (increase) in investments	513,986	(177,488)
Increase in fixed deposits	(1,238,579)	(101,332)
Decrease in trade and other payables	(101,860)	(7,462)
Cash used in operations	(666,276)	(47,049)
Current tax paid	(29,571)	(15,041)
Surcharge tax paid	(32,974)	-
Net cash used in operating activities	(728,821)	(62,090)
Cash flows from investing activities
Investments in equity accounted investees	-	(1,900)
Dividend received from equity accounted investees	27,639	41,459
Net cash generated from investing activities	27,639	39,559
Cash flows from financing activities
Finance expense paid	(31,883)	(101)
Short term borrowings (net movement)	200,000	-
Dividend paid	(73,000)	(67,757)
Net cash generated from / (used in) financing activities	95,117	(67,858)
Net decrease in cash and cash equivalents during the period	(606,065)	(90,389)
Cash and cash equivalents at the beginning of the period	736,108	456,498
Cash and cash equivalents at the end of the period	130,043	366,109
Statement of cash and cash equivalents	-	-
Placements with banking institutions	-	195,758
Securities purchased under resale agreements	-	63,570
Investment in treasury bills	-	39,821
Cash at bank	130,043	66,960
Cash and cash equivalents for the cash flow statement purposes	130,043	366,109

-

Figures in brackets indicate deductions.

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