Kahawatte Plantations : Interim Financial Statements For the Year Ended 31st December 2021

Kahawatte Plantations PLC

Interim Financial Statements

Year ended 31st December 2021

KAHAWATTE PLANTATIONS PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Quarter Ended			Year Ended
	Unaudited	Unaudited		Unaudited	Audited
	31.12.2021		31.12.2020	Change +/(-)	31.12.2021		31.12.2020	Change +/(-)
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Revenue	915,904		807,987	107,917	4,266,519		2,979,643	1,286,876
Cost of Sales	(1,028,197)		(846,346)	(181,851)	(4,203,266)		(3,002,350)	(1,200,916)
Gross Profit /(Loss)	(112,293)		(38,359)	(73,934)	63,253		(22,707)	85,960
Other Income	34,648		17,612	17,036	75,399		52,581	22,818
Fair Value Gain on Biological Assets	81,016		31,866	49,150	81,016		75,208	5,808
Administrative Expenses	(48,999)		(39,535)	(9,464)	(134,178)		(105,356)	(28,822)
Management Fee	-		-	-	-		-	-
Profit/(Loss) From Operating Activities	(45,628)		(28,416)	(17,212)	85,490		(274)	85,764
Finance Costs	(50,712)		(45,483)	(5,229)	(184,116)		(237,544)	53,428
Profit/(Loss) before Taxation	(96,340)		(73,899)	(22,441)	(98,626)		(237,818)	139,192
Income Tax (Expence)/Reversal	(11,733)		(7,949)	(3,784)	(11,733)		(7,949)	(3,784)
Profit/(Loss) for the period	(108,073)		(81,848)	(26,225)	(110,359)		(245,767)	135,408
Other Comprehensive Income
Items that will not be Reclassified to Profit or Loss
Actuarial Gain / (Loss) on Retirement Benefit obligation	119,134		(56,775)	175,909	119,134		(56,775)	175,909
Deferred Tax (Charge)/Reversal on Retirement Benefit Obligation	(12,509)		7,949	(20,458)	(12,509)		7,949	(20,458)
Reversal from Deferred Tax Effective Rate Change on Gross Revaluation Reserve	10,921		-	10,921	10,921			10,921
Total Comprehensive Income/(Expense) for the Period
9,473		(130,674)	140,147	7,187		(294,593)	301,780
Basic Earnings / (Loss) Per Share (Rs.)	(1.09)		(1.02)		(1.11)		(3.07)

KAHAWATTE PLANTATIONS PLC

STATEMENT OF CHANGES IN EQUITY

	Stated	Revaluation	Accumulated	Total
	Capital	Reserve	Profit/(Loss)
	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 1st January 2020	898,760	268,356	(537,954)	629,162
Shares Issued by way of Private Placement	800,192	-	-	800,192
Net Loss for the Period	-	-	(245,767)	(245,767)
Other Comprehensive Income/(Expense)
Actuarial Loss on Defined Benefit Obligation, Net of Tax	-	-	(48,826)	(48,826)
Balance as at 31st December 2020	1,698,952	268,356	(832,547)	1,134,761
Balance as at 1st January 2021	1,698,952	268,356	(832,547)	1,134,761
	-			-
Net Loss for the Period	-	-	(110,359)	(110,359)
Other Comprehensive Income/(Expense)
Actuarial Gain on Defined Benefit Obligation, Net of Tax	-	-	106,625	106,625
Reversal - Deferred Tax Effective Rate Change on Gross Revaluation Reserve		10,921		10,921
Balance as at 31st December 2021	1,698,952	279,277	(836,281)	1,141,948

KAHAWATTE PLANTATIONS PLC

STATEMENT OF FINANCIAL POSITION

	Unaudited	Audited
As at	31.12.2021	31.12.2020
	Rs.'000	Rs.'000
ASSETS
Non Current Assets
Leasehold Right to Bare Land of JEDB/SLSPC Estates	144,222	150,300
Immovable Leased Assets of JEDB/SLSPC Estates (Other than Bare Land)	35,167	44,990
Property, Plant & Equipment	1,011,870	952,501
Biological Assets	3,312,291	3,285,083
	4,503,550	4,432,874
Current Assets
Produce on Bearer Biological Assets	8,376	8,376
Inventories	415,774	442,201
Trade and Other Receivable	115,752	120,745
Amount Due from Related Parties	4,641	7,610
Cash and Bank Balance	29,065	24,915
	573,608	603,847
TOTAL ASSETS	5,077,158	5,036,721
EQUITY AND LIABILITIES
Capital and Reserves
Stated Capital	1,698,952	1,698,952
Revaluation Reserve	279,277	268,356
Retained Earnings	(836,281)	(832,547)
Total Equity	1,141,948	1,134,761
Non Current Liabilities
Deferred Income	288,448	284,211
Deferred Tax Liability	140,795	140,795
Interest Bearing Loans and Borrowings	576,049	585,373
Retiring Benefit Obligations	518,468	604,139
Net Liability to Lessor of JEDB/SLSPC Estates	129,887	129,887
	1,653,647	1,744,405
Current Liabilities
Interest Bearing Loans and Borrowings	765,777	713,582
Net Liability to Lessor of JEDB/SLSPC Estates	685	685
Trade and Other Payable	622,028	595,828
Amounts due to Related Parties	98,221	44,131
Bank Overdraft	794,852	803,329
	2,281,563	2,157,555
Total Liabilities	3,935,210	3,901,960
Total Equity and Liabilities	5,077,158	5,036,721
Net Assets Per Share (Rs.)	11.49	11.42

It is certified that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 07 of 2007.

sgd.

Vinesh Athukorala

CHIEF FINANCIAL OFFICER

Signed on behalf of the Board of Directors of Kahawatte Plantations PLC

sgd.	sgd.
Minette D A Perera	Himendra S Ranaweera
Director	Director
28th February 2022

KAHAWATTE PLANTATIONS PLC

STATEMENT OF CASH FLOWS

For the Period ended	Unaudited	Audited
	31.12.2021	31.12.2020
	Rs.'000	Rs.'000
Cash Flow from Operating Activities
Net Loss Before Taxation	(98,626)	(237,818)
Adjustment For
Depreciation/Amortization	226,111	200,194
Write-Offs- (Other Receivables/PPE/Immature Plantations)	-	36,300
ESC Write-offs	12,955	19,254
(Profit)/ Loss from Disposal of Property Plant and Equipment	(1,755)	(2,920)
Interest Expenses	184,116	237,544
Provision for Retirement Benefit Obligations	95,799	95,256
Fair Value Gain on Biological Assets	(81,016)	(75,208)
Amortization of Grants	(15,762)	(17,249)
Write Back of Other Payables	-	(10,906)
Operating Profit/(Loss) before Working Capital Changes	321,822	244,447
(Increase) / Decrease in Inventories	26,428	(105,284)
(Increase) / Decrease in Trade and Other Receivable	(14,286)	8,252
(Increase) / Decrease in Amounts Due from Related Companies	2,969	(2,204)
Increase / (Decrease) in Trade and Other Payable	48,804	(29,170)
Increase / (Decrease) in Amount Due to Related Companies	1,752	37,007
	387,489	153,048
Interest Paid	(131,262)	(84,449)
Payment of Retirement Benefit Obligations	(85,431)	(59,509)
Grants/ Deferred Income Received	20,000	500
Economic Service Charge Paid	-	(3,527)
Net Cash (Used In )/Generated from Operating Activities	190,796	6,063
Cash Flow from Investing Activities
Investment in Immature Bearer/Consumable Biological Assets	(60,369)	(71,956)
Purchase of Property Plant and Equipment	(156,522)	(11,904)
Proceeds from Disposal of Property Plant and Equipment	1,755	2,920
Net Cash Used In Investing Activities	(215,136)	(80,940)
Cash Flow from Financing Activities
Loan Received	203,883	188,000
Loan Repayments	(143,590)	(81,898)
Lease Rentals Paid to JEDB/SLSPC	(23,329)	(13,619)
Net Cash Generated from Financing Activities	36,964	92,483
Net Increase / (Decrease) in Cash and Cash Equivalents	12,624	17,606
Cash and Cash Equivalents at the Beginning of the Year	(778,411)	(796,017)
Cash and Cash Equivalents at the End of the Period	(765,787)	(778,411)

KAHAWATTE PLANTATIONS PLC

NOTES TO THE INTERIM FINANCIAL

01 Corporate Information

Kahawatte Plantations PLC is a public limited liability company incorporated and domiciled in Sri Lanka. It is listed on the Colombo Stock Exchange. The registered office of the Company is located at No. 111, Negombo Road, Peliyagoda. The principal activities and nature of operation of the Company is the cultivation, manufacture and sale of Tea, Rubber and other agricultural crops.

02 Basis of Preparation

The Condensed Interim Financial Statements of the Company have been prepared based on the Sri Lanka Accounting Standards that came into effect from January 01, 2012 (SLFRS/LKAS). There were no changes to the accounting policies and method of computation since the publication of the annual report 2020. Further, the Interim Financial Statements have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34 Interim Financial Reporting.

03 Approval of Financial Statements

The Interim Financial Statements of the Company as at 31st December 2021 were authorized for issue by the Board of Directors on 28th February 2022.

04 Contingencies, Capital and Other Commitments

There has not been a significant change in the nature of the contingent liabilities which were disclosed in the Annual Report for the year ended 31st December 2020.

05 Events Occurring After the Reporting Date

There were no significant events after the reporting date which requires disclosure or adjustments in the Interim Financial Statements.

06 External Audit

The figures are extracted from unaudited financial statements of the Company.

07 Related Party Transactions

The nature of related party transactions in the current period is similar to those reported in the Audited Financial Statements for the year ended 31st December 2020.

08 Company Registration

Company Registration is No. PQ 109.