Equity Two : Interim Financials 31 December 2021

Equity Two PLC

A Carson Cumberbatch Company

Interim report for the nine months ended 31st December 2021

EQUITY TWO 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
	2021	2020	Change %	2021	2020	Change %
Revenue	33,281	31,842	5	99,836	92,351	8
Direct cost	(10,463)	(7,904)	32	(30,149)	(25,050)	20
	22,818	23,938	(5)	69,687	67,301	4
Other income	158	135	17	428	338	27
Administrative and other operating expenses	(2,261)	(2,166)	4	(5,893)	(5,684)	4
Results from operating activities	20,715	21,907	(5)	64,222	61,955	4
Finance income	2,467	2,787	(11)	6,131	9,108	(33)
Finance costs	(1,038)	(1,359)	(24)	(3,026)	(4,831)	(37)
Net finance income	1,429	1,428	-	3,105	4,277	(27)
Profit before taxation	22,144	23,335	(5)	67,327	66,232	2
Income tax expense	(4,691)	(4,927)	(5)	(14,118)	(12,860)	10
Deferred taxation	(855)	(975)	(12)	(2,556)	(2,946)	(13)
Profit for the period	16,598	17,433	(5)	50,653	50,426	-
Other comprehensive income / (expense)
Items that will never be reclassified into profit and
loss
Actuarial gain / (loss) from valuation of employee
benefits	-	-	-	-	-	-
Related tax on employee benefits	-	-	-	-	-	-
Total other comprehensive income / (expense) for	-	-	-	-	-	-
the period
Total comprehensive income for the period	16,598	17,433	(5)	50,653	50,426	-
Earnings per share (Rs.)	0.54	0.56		1.63	1.63
Dividend per share (Rs.)	-	-		-	-

Change % represents the percentage change in current period's results compared to the comparative period of previous year.

Figures in brackets indicate deductions.

Page 1

EQUITY TWO PLC

STATEMENT OF FINANCIAL POSITION

(All figures are in Sri Lankan Rupees Thousands)

		31.03.2021
As at	31.12.2021	(Audited)
Non-current assets
Investment properties	1,522,710	1,520,255
Current assets
Trade and other receivables	24,420	29,375
Cash and cash equivalents	91,523	6,739
Total assets	1,747,928	1,715,847
EQUITY AND LIABILITIES
Equity
Stated capital	444,092	444,092
Revenue reserves	964,175	913,522
Non-current liabilities
Refundable rental deposits	45,438	42,013
Employee benefits	2,185	2,099
Current liabilities
Trade and other payables	3,772	22,296
Current tax liabilities	1,903	5,091
Total equity and liabilities	1,747,928	1,715,847
	-	-
Net assets per share (Rs.)	45.45	43.82

The Statement of Financial Position as at 31st December 2021 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 financial statements.

I certify that these financial statements are in compliance with the requirements of Companies Act, No. 7 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 managers,	Approved and signed on behalf of the board,
(Sgd).	(Sgd).	(Sgd).
A.P. Weeratunge	D.C.R. Gunawardena	K.C.N. Fernando
Director	Chairman	Director
Carsons Management Services (Private) Limited

Colombo

11th February 2022

Page 2

EQUITY TWO PLC

STATEMENT OF CHANGES IN EQUITY

(All figures are in Sri Lankan Rupees Thousands)

	Stated	Capital	Revenue
	capital	reserves	reserves	Total equity
Balance as at 01st April 2021 (Audited)	444,092	750	913,522	1,358,364
Profit for the period	-	-	50,653	50,653
Other comprehensive income for the period	-	-	-	-
Total comprehensive income for the period	-	-	50,653	50,653
Balance as at 31st December 2021 (Unaudited)	444,092	750	964,175	1,409,017
Balance as at 01st April 2020 (Audited)	444,092	750	844,134	1,288,976
Profit for the period	-	-	50,426	50,426
Other comprehensive income for the period	-	-	-	-
Total comprehensive income for the period	-	-	50,426	50,426
Dividends 2019/20			(26,350)	(26,350)
Balance as at 31st December 2020 (Unaudited)	444,092	750	868,210	1,313,052

Figures in brackets indicate deductions.

Page 3

EQUITY TWO PLC STATEMENT OF CASH FLOWS

(All figures are in Sri Lankan Rupees Thousands)

Nine months ended 31st December	2021	2020
Cash flows from operating activities
Profit before taxation	67,327	66,232
Adjustments for:
Finance costs	3,026	4,831
Finance income	(5,769)	(9,108)
Net change in fair value through profit or loss financial assets	(362)	-
Provision for employee benefits	86	86
Amortization of deferred revenue	(2,963)	(2,777)
Operating profit before working capital changes	61,345	59,264
(Increase) / decrease in trade and other receivables	4,955	(2,433)
Increase / (decrease) in trade and other payables	(18,412)	(27,109)
Operating profit after working capital changes	47,888	29,722
Rental deposits received	435	6,739
Income tax paid	(17,306)	(7,346)
Net cash generated from / (used in) operating activities	31,017	29,115
Cash flows from investing activities
Additions to investment properties	(2,455)	(150)
Disposal of / (investment in) fair value through profit or loss financial assets	(2,203)	16,628
Withdrawal of / (investment in) fixed deposits	78,447	(75,951)
Withdrawal of / (investment in) securities purchased under resale agreements	(26,200)	-
Interest received	6,290	9,108
Net cash generated from / (used in) investing activities	53,879	(50,365)
Cash flows from financing activities
Dividend paid	(112)	(27,078)
Loans obtained/ (settled)	-	(25,121)
Interest paid	-	(2,127)
Net cash generated from / (used in) financing activities	(112)	(54,326)
Net increase / (decrease) in cash and cash equivalents	84,784	(75,576)
Cash and cash equivalents at the beginning of the period	6,739	102,048
Cash and cash equivalents at the end of the period	91,523	26,472
Statement of cash and cash equivalents
Investment in treasury bills	9,955	-
Investment in fixed deposits	72,560	-
Cash at bank and in hand	9,008	26,472
Cash and cash equivalents for the cash flow statement purposes	91,523	26,472

Figures in brackets indicate deductions.

Page 4