Good Hope : Interim financial statements for the quarter ended 30th September 2022

Good Hope PLC

Summarised Financial Report

for the Six months ended

30th September 2022

GOOD HOPE PLC

Review of operations for the period ended 30th September 2022

The minority equity investments the Company holds in Shalimar Developments Sdn. Bhd. (SDSB) and in Shalimar (Malay) PLC (SMPLC) is the main business of the Company. SDSB's investee company carries out palm oil plantation operations in Indonesia.

The investee company continues to take measures to ensure that its business operations are carried out efficiently amidst several market and economic challenges. The Crude Palm Oil (CPO) prices which saw an upward trend in the fourth quarter of the previous financial year, experienced a significant and sudden reversal in prices during the latter part of the first half under review. This was due to multiple reasons, including a global price correction of commodities, fears of a global recession, the duty on CPO sales introduced by the Indonesian government and higher build-up of stocks in the Indonesian domestic market. In the backdrop of these challenges, the investee Company is focused in managing its resources to ensure that it is able to preserve the long term value of the investment to its stakeholders.

The only source of income for the period is the interest income earned from the Company's short-term deposits in Sri Lanka. Accordingly, the Company recorded an after tax profit of Rs. 1.06 Mn from its operations during the period under review; compared to a profit of Rs. 22.53 Mn recorded in the corresponding period of the previous financial year.

Minimum Public Holding

As previously informed, the Company is not in compliance with the minimum public holding requirements in relation to a Company Listed on the Main Board of the Colombo Stock Exchange (CSE) as per Rule 7.14.1 (a) of the Listing Rules of CSE, due to which the Company was transferred to the 'Watch List' of the CSE in terms of Rule 7.14.2 (b) of the previous Listing Rules of the CSE with effect from 2nd July 2018.

However, the CSE via their Circular No. 03/2019 dated 3rd October 2019 amended the Listing Rules on enforcement actions applicable for non-compliance with minimum public holding requirements with effect from 12th September 2019. Accordingly, in terms of Rule 7.14.2 of the Listing Rules of the CSE, the company was transferred to the Second Board with effect from 15th November 2019.

We wish to highlight that the objective of the voluntary offer made to all shareholders on 17th March 2011 was to acquire the entire minority shareholding as a step towards the consolidation of the oil palm plantation business. The offer documents also mentioned that upon completion of the voluntary offer, the rationale for remaining listed will be evaluated. Since the voluntary offer did not result in the acquisition of the entire minority shareholding, the Company continued to remain listed.

Taking into consideration that a voluntary offer had been made and also considering that there is no requirement for additional capital infusion to the Company and resultantly, there being no plans for issuing of new shares nor a dilution by the majority shareholder and as previously communicated to shareholders through market disclosures and Annual Reports and in terms of the revised Listing Rules, we will report the proposed course of action.

Agro Harapan Lestari (Pvt) Ltd

Managers

04th November 2022

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GOOD HOPE PLC

Statement of Profit or Loss

	Quarter ended		Six months ended
(All figures in Sri Lankan Rupees '000)	30th September	Change	30th September		Change
	2022	2021	2022	2021
			%				%
Dividend Income	-	22,845	-100%	-	22,845		-100%
Interest Income	1,744	72	2322%	2,411	833		189%
	1,744	22,917	-92%	2,411	23,678		-90%
Administrative expenses	(498)	(534)	-7%	(985)	(1,036)		-5%
Profit before tax for the period	1,246	22,383	-94%	1,426	22,642		-94%
Income tax expense	(319)	(111)	187%	(367)	(111)		231%
Profit for the period	927	22,272	-96%	1,059	22,531		-95%
Earnings Per Share (Rs.)	0.24	5.73		0.27	5.80
	Quarter ended		Six months ended
	30th September	Change	30th September		Change
Statement of Comprehensive Income	2022	2021	2022	2021
			%				%
Profit for the period	927	22,272	-96%	1,059	22,531		-95%
Other comprehensive income
Other Comprehensive Income/(Expense) not to be reclassified to profit or
loss in subsequent periods
Gain / (Loss) on Change in Fair Value of Financial Assets classified under Fair	60,405	-	100%	18,113	(27,894)		-165%
Value through Other Comprehensive income (FVOCI)
Net Other Comprehensive Income / (Expense) not to be reclassified to profit	60,405	-	100%	18,113	(27,894)		-165%
or loss in subsequent periods
Total Comprehensive Income / (Expense) for the period, net of tax	61,332	22,272	175%	19,172	(5,363)		-457%

Changes represent the percentage change in current period's results compared to corresponding period of last year.

Figures in brackets indicate deductions/negative changes.

The above figures are subject to audit.

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GOOD HOPE PLC

Statement of Financial Position

(All figures in Sri Lankan Rupees '000)
		As at	As at
	Note	30.09.2022	31.03.2022
ASSETS
Non-Current Assets
Property, Plant and Equipment		220	311
Non-current financial assets	(Note 3)	10,706,931	10,688,818
Total Non- Current Assets		10,707,151	10,689,129
Current Assets
Prepayments and other receivable		115	338
Income tax receivable		449	631
Short term investments		1,941	36,233
Cash and cash equivalents		40,565	5,487
Total Current Assets		43,070	42,689
Total Assets		10,750,221	10,731,818
EQUITY AND LIABILITIES
Equity
Stated capital	(Note 6)	68,713	68,713
Retained earnings		93,338	92,971
Other reserves		10,555,547	10,537,434
Total Shareholders' Funds		10,717,598	10,699,118
Current Liabilities
Provisions and Accrued Expenses		266	343
Unclaimed dividend		32,357	32,357
Total Current Liabilities		32,623	32,700
Total Liabilities		32,623	32,700
Total Equity and Liabilities		10,750,221	10,731,818
Net Asset per share (Rs.)		2,759.58	2,754.82

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

(Sgd.)
Aneesh Dudeja
President / Chief Financial Officer
The Board of Directors is responsible for the preparation and presentation of these financial statements.
Approved & signed for and on behalf of the Managers,	Approved & signed for and on behalf of the Board,
(Sgd.)	(Sgd.)	(Sgd.)
Rushdi Azeez	H. Selvanathan	M. Selvanathan
Director	Chairman	Director
Agro Harapan Lestari (Pvt) Ltd

04th November 2022

The above figures are subject to audit.

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GOOD HOPE PLC

Statement of Changes in Equity (All figures in Sri Lankan Rupees '000)

Balance as at 01st April 2021

Profit for the period

Other comprehensive income for the period

Total comprehensive income for the period

Interim Dividend - 2021/22

Balance as at 30th September 2021

Balance as at 01st April 2022

Surcharge tax(Note 8) Balance as at 01st April 2022 (Adjusted)

Profit for the period

Other comprehensive income for the period Total comprehensive income for the period

Balance as at 30th September 2022

The above figures are subject to audit.

Figures in brackets indicate deductions/negative changes.

Stated	Fair Value	Retained	Total
Shareholders'
Capital	Reserve	Earnings
Funds
68,713	6,946,080	111,888	7,126,681
-	-	22,531	22,531
-	(27,894)	-	(27,894)
-	(27,894)	22,531	(5,363)
-	-	(41,828)	(41,828)
68,713	6,918,186	92,591	7,079,490

Stated	Fair Value	Retained	Total
Shareholders'
Capital	Reserve	Earnings
Funds
68,713	10,537,434	92,971	10,699,118
-	-	(692)	(692)
68,713	10,537,434	92,279	10,698,426
-	-	1,059	1,059
-	18,113	-	18,113
-	18,113	1,059	19,172
68,713	10,555,547	93,338	10,717,598

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