EChannelling : Interim Financial Statements for year ended 31st March 2024

Interim Financial Statements

For the period ended

31st March 2024

eChannelling PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPRIHENSIVE INCOME

For the period ended 31.03.2024
	Quarter Ended 31st March
	Un-audited	Un-audited
	2024	2023
	LKR	LKR
Revenue	64,979,347	66,323,392
Cost of Sales/Direct Cost	(14,449,487)	(15,059,629)
Gross Profit	50,529,860	51,263,763
Net Other Operating Income	87,944	72,397
Administrative Expenses	(39,677,177)	(45,618,687)
Marketing & Distribution Expenses	(2,101,487)	(5,796,438)
Profit From Operations	8,839,140	(78,965)
Finance Income	7,074,477	15,754,864
Finance Expenses	(291,657)	(160,294)
Net Finance (Expenses) / Income	6,782,820	15,594,570
Profit Before Taxation	15,621,960	15,515,605
Income Tax Expenses	(5,213,339)	(6,386,912)
Profit for the Period	10,408,620	9,128,693
Other Comprehensive Income
Equity Investment at FVOCI-net change in Fair Value	122,440	(14,144)
Re-measurement of defined benefit liability	(10,100)	1,791,642
Related tax	3,030	(537,493)
Other Comprehensive Income for the Period, net of tax	115,370	1,240,005
Total Comprehensive Income for the Period	10,523,990	10,368,698
Earnings Per Share	0.09	0.07
Dividends Per Share	-	-

The notes to the Financial Statements form an integral part of these Financial Statements.

Figures in brackets indicate deductions.

eChannelling PLC

STATEMENT OF FINANCIAL POSITION

As at 31st December 2023

	31.03.2024	31.12.2023
	LKR	LKR
	Un-audited	Un-audited
ASSETS
Non Current Assets
Property, plant & equipment	3,521,439	2,492,970
Intangible assets	2,919,855	3,534,524
Leasehold right-of-use asset	9,546,244	-
Deferred tax assets	7,799,768	8,092,565
Equity Investments at FVOCI	2,298,109	2,175,669
Total Non Current Assets	26,085,415	16,295,728
Current Assets
Inventories	288,465	288,465
Trade & other receivables	207,944,001	179,898,773
Amount due from related parties	60,030,478	64,125,164
Short term investments	309,991,272	305,359,349
Cash & cash equivalents	6,323,983	22,533,803
Total Current Assets	584,578,199	572,205,554
Total Assets	610,663,614	588,501,282
EQUITY AND LIABILITIES
Equity
Stated capital	93,758,316	93,758,316
Retained earnings	359,132,260	348,730,710
Fair value through OCI reserve	728,572	606,130
Total Equity	453,619,148	443,095,157
Non Current Liabilities
Employee benefits	10,345,457	11,218,981
Leashold right to use liability	5,153,673	-
Total Non Current Liabilities	15,499,130	11,218,981
Current Liabilities
Trade & other payables	83,329,909	89,100,372
Leashold right to use liability	7,536,299	1,488,321
Amount due to related parties	44,010,329	36,041,242
Income tax liability	6,668,798	4,589,934
Bank Overdraft	-	2,967,274
Total Current Liabilities	141,545,335	134,187,143
Total Liabilities	157,044,465	145,406,124
Total Equity & Liabilities	610,663,614	588,501,282
Net Asset Per Share	3.71	3.63

I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act No 7 of 2007.

Signed

R.P.S.P. Randeni

Manager -Finance

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

Signed		Signed
A.K.D.D.D.Arandara	S.A.Hettiarachchi
Director		Director
Date:	15.05.2024	`

Figures in the brackets indicate deductions.

The above figures are provisional and subject to audit.

eChannelling PLC

STATEMENT OF CHANGES IN EQUITY

For the Period Ended 31st March 2024
	Stated Capital	Available for-	Retained	Total
		sale Reserve	Earnings
	LKR	LKR	LKR	LKR
Balance as at 31st December 2022	93,758,316	776,681	306,841,467	401,376,464
Total Comprehensive income for the period
Profit for the period	-	-	9,128,693	9,128,693
Other comprehensive income
Actuarial gain arising from defined benefit obligation, net of tax			1,254,149	1,254,149
Fair value gain of investments valued at FVTOCI	-	(14,144)		(14,144)
Balance as at 31 st March 2023	93,758,316	762,537	317,224,309	411,745,162
Total Comprehensive income for the perod
Profit for the year (Nine Month)			34,697,917	34,697,917
Other comprehensive income
Actuarial gain arising from defined benefit obligation, net of tax			(3,191,515)	(3,191,515)
Fair value gain of investments valued at FVTOCI		(156,407)		(156,407)
Balance as at 31st December 2023	93,758,316	606,130	348,730,710	443,095,157
Total Comprehensive income for the perod
Profit for the year			10,408,620	10,408,620
				-
Other comprehensive income				-
Actuarial gain arising from defined benefit obligation, net of tax			(7,070)	(7,070)
Fair value gain of investments valued at FVTOCI		122,440		122,440
Balance as at 31st March 2024	359,146,400	728,572	359,132,260	453,619,147

Figures in the brackets indicate deductions.

The above figures are provisional and subject to audit.

eChannelling PLC

CASH FLOW STATEMENT

For the period ended

Cash Flow From Operating Activities

Profit Before Tax

Adjustments for :

Depreciation and amortization

Ammortization of right-of-use asset

Amotization on intangible assets

Provision for employee benefits

Interest income

Interest expenses

Operating Profit before Working Capital Changes

Decrease / (increase) in trade & other receivable Decrease / (increase) in amounts due from related parties Decrease / (increase) in amounts due to related parties Increase / (decrease) in trade & other payables

Cash Generated from Operations

Employee benefits paid

Tax paid

Net Cash Generated from Operating Activities

Cash Flow From Investing Activities

Acquisition of property plant and equipment

Net proceeds from short term investments

Interest Income Received

Net Cash (used in) / Generated from Investing Activities

Cash flow from Financing Activities

Lease Rental

Net Cash Generated from Financing Activities

Net increase in cash & cash equivalents

Cash & cash equivalents at beginning of the period

Cash & Cash Equivalents at end of the Period

Analysis of Cash and Cash Equivalents

Cash at bank & in hand

31.03.2024	31.03.2023
Un-audited	Un-audited
LKR	LKR
15,621,960	15,515,605
1,019,032	2,731,114
1,363,749	-
614,669	-
10,100	2,226,019
(7,074,477)	(15,754,864)
291,657	160,294
11,846,690	4,878,168
(28,045,228)	37,187,305
4,094,686	(19,283,544)
7,969,087	-
(5,770,464)	6,681,269
(9,905,229)	29,463,198
(890,694)	(559,233)
(2,841,678)	(6,154,872)
(13,637,601)	22,749,093
(2,047,500)	-
(4,763,160)	-
7,205,716	3,234,549
395,056	3,234,549
-	-
-	-
(13,242,546)	25,983,641
19,566,529	10,999,949
6,323,983	36,983,590
6,323,983	36,983,590
6,323,983	36,983,590

Figures in the brackets indicate deductions.

The above figures are provisional and subject to audit.

Notes to the Financial Statements

1. Basis of preparation
   The Interim Financial Statements of the Company have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34 - Interim Financial Reporting. This Interim Financial Statement should be read in conjunction with the Annual Report for the year ended 31 December 2023. The financial statements provide the information as required in terms of Rule 7.4 of the Colombo Stock Exchange.
2. Company is following the same accounting policies published in the Annual report for the year ended 31st December 2023.
3. The figures are provisional and subject to audit.
4. All known expenses including management fees and similar expenses have been provided for the financial statements.
5. According to the best of knowledge and belief of the Board of Directors no circumstances have arisen since the reporting date, which would require adjustments to or disclosure in the Financial Statements.
6. There has not been a significant change in the nature of contingent liabilities, which were disclosed in the Annual Report for the year ended 31 December 2023.
7. Basic earnings per share is calculated by dividing the net profit for the respective period attributable to ordinary shareholders of the entity by the weighted average number of ordinary shares outstanding during that period.

20 Largest Shareholders

Name of Shareholder	No of Shares	% Holding
31-Mar-24
Mobitel (Pvt) Ltd	106,974,618	87.59
People's Leasing & Finance PLC / Mr. M.M.R.S Ananda	1,622,653	1.33
Mr. G.C. Goonetilleke	1,162,000	0.95
Mr. P. Rathnayaka	840,000	0.69
Mr. D.K.A.K Weerathunga	429,441	0.35
Mr. M.A.B Morahela	293,300	0.24
Mr. H.M.C De Alwis	269,373	0.22
Merchant Bank of Sri Lanka & Finance PLC / Y.R.P.De Silva	265,186	0.22
Mr. M.A. Kumarasingha	232,433	0.19
Mr. Z.G Carimjee	231,933	0.19
MBSL / A.G.C Sugath	209,165	0.17
Mrs. T.R. Selvanayagam	201,000	0.16
Mr. A.H Munasinghe and A.R.R Munasinghe	190,000	0.16
Seylan Bank PLC / Anuja Chamila Jayasinghe	150,210	0.12
Senkadagala Finance PLC /S. Gobinath	149,000	0.12
Mr. D.M.A Mudunkotuwa	148,446	0.12
Mr. M.S.F Haqque / Mrs. S.I Haqque	138,000	0.11
Hatton National Bank PLC / Ravindra Erle Rambukwelle	124,000	0.10
Mr. B.A.S.I Perera	120,400	0.10
Mrs. Z.M Adamally	115,967	0.09
Sub Total	113,867,125	93.22
Others	8,264,290	6.78
Total Shares	122,131,415	100
Public Shareholding
Number of Shareholders		2,181
Number of Shares		15,156,797
Percentage Holding		12.41%
Float Adjusted Market Capitalization - Rs.		221,289,236

The Company complies with Option 2 of the Listing Rules 7.13.1 (b) - Less than Rs. 1 Bn, Float Adjusted Market Capitalization which requires 10% minimum Public Holding.

Directors Shareholding	As at 31st March
Name of Director	2024
Mr. A.K.D.D.D. Arandara -Chairman	-
Mr. Isuru Dasanayake	-
Mr.Lawrence Paratz	-
Mr. Sampath Hettiarachchi	-
Mr. Dallas Stephen	-
Mr. Dinesh Vidanapathirana	-

Market Price Per Share	2024	2023
For the 3 months ended 31st March 2024	LKR	LKR
Highest	17.00	20.00
Lowest	13.50	11.20
Last Traded	14.60	15.90

Corporate Information
Name of the Company	eChannelling PLC
Company Registration No	PQ 205
Registered Office	No.108, W.R.D.Ramanayake Mawatha,
	Colombo 02
Telephone	([phone]
Telefax	([phone]
Website	www.echannelling.com
Contant Person	Sandun Randeni ( Manager- Finance)
Legal Form
	Quoted Public Company incorporated in Sri
	Lanka in 2000, Ordinary share listed on the Diri
	Savi Board of the Colombo Stock Exchange
Board of Directors	Mr. A.K.D.D.D. Arandara -Chairman
	Mr. Isuru Dasanayake
	Mr.Lawrence Paratz
	Mr. Sampath Hettiarachchi
	Mr. Dallas Stephen
	Mr. Dinesh Vidanapathirana
Secretaries of the Company	Ms. Geredene Suares
Auditors	KPMG
	Charted Accountants
	32A, Sir Mohamed Macan Marker Mawatha
	P.O. Box 186
	Colombo 03
Lawyer(s)	D. L. & F. De Saram
	47 Alexandra Place, Colombo 07
Bankers	Sampath Bank PLC
	Nations Trust Bank PLC
	Peoples Bank
	Commercial Bank of Ceylon PLC
	DFCC Bank
	Amana Bank PLC
	National Development Bank
	City Bank