Lankem Ceylon : Quarterly Financial Report as of 30/06/2022

LANKEM CEYLON PLC

Company No. PQ 128

INTERIM FINANCIAL STATEMENTS

For the Period Ended 30th June 2022

LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSOLIDATED

	Consolidated			Company
	Quarter		Quarter			Quarter		Quarter
	Ended		Ended		Variance	Ended		Ended	Variance
	30.06.2022	30.06.2021		%	30.06.2022	30.06.2021		%
	Rs.'000		Rs.'000			Rs.'000		Rs.'000
Revenue	7,577,874	4,442,543	+	71	1,357,557	763,583	+	78
Cost of Sales	(5,161,696)	(3,594,232)	-	44	(736,414)	(562,747)	-	31
Gross Profit	2,416,178	848,311	+	185	621,143	200,836	+	209
Other Income	76,357	63,822	+	20	5,774	13,042	-	56
Distribution Expenses	(460,628)	(272,549)	-	69	(152,339)	(89,763)	-	70
Administration Expenses	(627,588)	(438,849)	-	43	(106,042)	(76,011)	-	40
Share of Profit /(Loss) from Joint Venture	(50,203)	(20,688)	-	143	-	-	-	-
Share of Profit /(Loss) from Associates	198	(759)	+	126	-	-	-	-
Net Finance Costs	(653,738)	(211,165)	-	210	(222,398)	(102,796)	-	116
Profit / (Loss) before Tax			+	2,298				+	367
700,576		(31,877)	146,138		(54,692)
Tax Expense	(146,682)	(39,934)	-	267	-	-	-	-
Profit / (Loss) for the period	553,894	(71,811)	+	871	146,138	(54,692)	+	367
Other Comprehensive Income/ (Expense)
Gain on Financial Assets designated at Fair Value through Other
Comprehensive Income	83	1,909	-	96	1,240	1,736	-	29
Actuarial Gain on Defined Benefit Obligations	-	77	-	100	-	-	-	-
Other Comprehensive Income for the Period, net of Tax	83		1,986			1,240		1,736
Total Comprehensive Income/ (Expense)	553,977	(69,825)	+	893	147,378	(52,956)	+	378
Profit/ (Loss) Attributable to
Owners of the Company	566,732	(55,329)	+	1,124	146,138	(54,692)	+	367
Non-Controlling Interests	(12,838)		(16,482)	+	22	-		-	+	-
	553,894	(71,811)	+	871	146,138	(54,692)	+	367
Total Comprehensive Income/ (Expense) Attributable to
Owners of the Company	566,921	(53,346)	+	1,163	147,378	(52,956)	+	378
Non-Controlling Interests	(12,944)		(16,479)	+	21	-		-	-	-
	553,977	(69,825)	+	893	147,378	(52,956)	+	378
Earnings/ (Loss) per Share (Rs.)	11.01	(1.46)	+	854	2.84	(1.44)	+	297

Lankem Ceylon PLC

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LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF FINANCIAL POSITION

	Consolidated		Company
	As at		As at		As at		As at
	30.06.2022	31.03.2022	30.06.2022	31.03.2022
	Rs.'000		Rs.'000		Rs.'000		Rs.'000
ASSETS			Un Audited				Un Audited
Property, Plant & Equipment	9,657,445	9,725,405	814,881	821,992
Investment Properties	942,357	947,547	-	-
Right of Use Assets	214,325	224,534	35,782	39,102
Intangible Assets	1,142,878	1,142,878	-	-
Investments in Subsidiaries	-	-	3,750,359	3,750,359
Investments in Associates	106,674	106,476	102,000	102,000
Investments in Joint Venture	113,344	163,547	-	-
Financial Assets Measured at Fair Value Through OCI	24,640	24,554	21,942	20,700
Deferred Tax Assets	-		-		282,924		282,924
Total Non - Current Assets	12,201,663		12,334,941		5,007,888		5,017,077
Inventories	5,128,759	3,710,372	1,251,036	909,598
Trade and Other Receivables	4,651,763	4,905,619	595,671	820,277
Amounts Due from Related Parties - Trade	6,265	15,120	60,931	6,910
Amounts Due from Related Parties - Non Trade	481,975	366,714	816,575	779,136
Loans Due from Related Parties	155,043	155,043	208,053	208,053
Income Tax Recoverable	67,203	69,057	24,465	24,465
Investments Classified as Fair Value Through Profit or Loss	19,164	49,066	19,164	29,479
Bank & Cash Balances	578,138	687,192	76,427	81,717
Asset Held For Sale	30,000		30,000		30,000		30,000
Total Current Assets	11,118,310		9,988,183		3,082,322		2,889,635
Total Assets	23,319,973	22,323,124	8,090,210	7,906,712
EQUITY
Stated Capital	1,282,697	1,282,697	1,282,697	1,282,697
Other Capital Reserves	4,833	4,833	-	-
Revaluation Reserve	2,306,274	2,306,274	469,079	469,079
FVTOCI Reserve	(13,173)	(13,363)	(7,302)	(8,542)
Retained Earnings/(Accumulated Losses)	(1,185,692)		(1,752,424)		(334,576)		(480,714)
Equity attributable to Owners of the Company	2,394,939	1,828,017	1,409,898	1,262,520
Non-Controlling Interests	3,051,602		3,064,547		-		-
Total Equity	5,446,541	4,892,564	1,409,898	1,262,520
LIABILITIES
Interest Bearing Borrowings	3,763,226	3,833,522	1,585,321	1,480,974
Lease Liabilities	109,883	114,280	13,871	15,525
Deferred Income	621	706	-	-
Deferred Tax Liabilities	514,675	539,886	-	-
Retirement Benefit Obligations	277,224		284,604		108,082		105,960
Total Non - Current Liabilities	4,665,629		4,772,998		1,707,274		1,602,459
Interest Bearing Borrowings	7,609,759	7,030,577	2,585,788	2,366,081
Lease Liabilities	68,086	61,929	10,701	11,200
Loans Payable to Related Parties	222,295	210,745	514,164	514,164
Trade and Other Payables	3,448,645	3,779,204	850,325	1,173,838
Amounts Due to Related Parties - Trade	-	-	1,220	2,087
Amounts Due to Related Parties Non - Trade	610,571	402,791	644,534	636,391
Income Tax Payable	271,810	204,439	-	-
Bank Overdraft	976,637		967,877		366,306		337,972
Total Current Liabilities	13,207,803		12,657,562		4,973,038		5,041,733
Total Liabilities	17,873,432		17,430,560		6,680,312		6,644,192
Total Equity and Liabilities	23,319,973		22,323,124		8,090,210		7,906,712
Net Assets per Share (Rs.)	46.53	35.52	27.39	24.53

I certify that these Financial Statements have been prepared in compliance with the requirements of the Companies Act. No. 07 of 2007.

Sgd.

S.A.S. Asiri

Assistant General Manager- Finance

The Directors are responsible for the preparation and presentation of these Financial Statements.

Approved and signed for and on behalf of the Board of Directors of Lankem Ceylon PLC.

Sgd.	Sgd.
Mr. Suren Goonewardene	Mr. S.D.R.Arudpragasam
Managing Director	Chairman
Colombo
12th August 2022

Lankem Ceylon PLC

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LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF CHANGES IN EQUITY

Equity Attributable to Equity Holders of the Parent

	Stated		Other Capital		FVTOCI		Revaluation		Retained		Total		Non-controlling		Total
	Capital		Reserves		Reserves		Reserves		Profit/(Loss)				Interest
Consolidated	Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000
Balance as at 1st April 2022	1,282,697	4,833	(13,363)		2,306,274	(1,752,424)	1,828,017	3,064,547	4,892,564
Profit / (Loss) for the Period	-	-	-		-	566,732	566,732	(12,838)	553,894
Other Comprehensive Income for the Period	-	-	190		-	-	190	(107)	83
Balance as at 30th June 2022	1,282,697		4,833		(13,173)			2,306,274		(1,185,692)		2,394,939		3,051,602		5,446,541
Balance as at 1st April 2021	930,346	4,833	(18,584)		2,341,192	(2,254,731)	1,003,056	2,898,540	3,901,596
Issue of Shares	352,351	-	-		-	-	352,351	-	352,351
Loss for the Period	-	-	-		-	(55,329)	(55,329)	(16,482)	(71,811)
Other Comprehensive Income/( Expenses) for the Period	-		-		1,907			-		77		1,984		2		1,986
Balance as at 30th June 2021	1,282,697	4,833	(16,677)		2,341,192	(2,309,983)	1,302,062	2,882,060	4,184,122
								Stated		FVTOCI		Revaluation		Retained		Total
								Capital		Reserves		Reserves		Profit/(Loss)
Company								Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000
Balance as at 1st April 2022							1,282,697	(8,542)	469,079	(480,714)	1,262,520
Profit for the Period							-	-	-	146,138	146,138
Other Comprehensive Income for the Period							-	1,240	-	-	1,240
Balance as at 30th June 2022								1,282,697		(7,302)		469,079		(334,576)		1,409,898
Balance as at 1st April 2021							930,346	(12,854)	867,303	(1,073,659)	711,136
Issue of Shares							352,351	-	-	-	352,351
Loss for the Period							-	-	-	(54,692)	(54,692)
Other Comprehensive Income for the Period							-	1,736	-	-	1,736
Balance as at 30th June 2021								1,282,697		(11,118)		867,303		(1,128,351)	1,010,531

Lankem Ceylon PLC

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LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF CASH FLOWS

	Consolidated		Company
For the Period Ended 30th June	2022	2021	2022			2021
	Rs.'000		Rs.'000		Rs.'000	Rs.'000
Cash Flows from Operating Activities
Profit / (Loss) before Tax	700,576	(31,877)	146,138			(54,692)
Adjustments for :
Depreciation / Amortization on Property, Plant & Equipment	103,446	104,964	12,331			14,017
Amortization of Right of Use Assets	3,320	2,865	3,320			2,572
Dividend Income	-	(1,658)	-			(1,658)
Loss/(Gain) on Disposals of FVTPL Investments	-	(192)	-			(27)
Interest Expense	461,431	224,596	190,744			130,768
Amortization of Deferred Income	(85)	(93)	-			-
(Gain) / Loss on Disposal of Property, Plant & Equipment	(12,156)	(3,884)	(56)			(3,975)
Exchange Loss/(Gain)	207,024	588	63,460			1,489
Interest Income	(14,718)	(14,018)	(42,106)			(24,783)
Provision for Retirement Benefit Obligation	14,891	13,739	5,100			4,655
Fair value (Gain) / Loss on Financial Assets Measured at FVTPL	10,315	(4,677)	10,315			(4,677)
Share of Loss/ (Profit) of Associates	(198)	759	-			-
Share of Loss/ (Profit) of Joint Venture	50,203	20,688	-			-
Provision for Impairment of Trade Receivable	23,541	12,204	5,826			3,798
Provision for Obsolete Inventories	16,575		16,117		14,043			5,845
Operating Profit/ (Loss) before Working Capital Changes	1,564,165	340,122	409,115			73,332
(Increase) / Decrease in Inventories	(1,434,962)	238,264	(355,481)			(202,418)
(Increase) / Decrease in Trade and Other Receivables	230,315	268,608	218,780			284,853
(Increase) / Decrease in Amounts due from Related Parties	(106,406)	(55,529)	(58,299)			(9,240)
Increase / (Decrease) in Trade and Other Payables	(330,559)	(267,134)	(387,742)			(29,068)
Increase / (Decrease) in Amounts due to Related Parties	207,780		(409,417)		(13,105)			(27,434)
Cash generated from Operations	130,333	114,914	(186,733)			90,025
Income Tax Paid	(77,457)	(41,332)	-			-
Interest Paid	(363,195)	(196,538)	(173,269)			(113,978)
Gratuity Paid	(10,248)		(5,313)		(2,978)			(4,481)
Net Cash used in Operating Activities	(320,567)	(128,270)	(362,980)			(28,434)
Cash Flows from Investing Activities
Purchase & Construction of Property, Plant & Equipment	(26,651)	(58,775)	(5,307)			(8,955)
Proceeds from Disposal of Financial Assets measured at FVOCI	-	190	-			-
Interest Received	14,718	6,476	32			1
Dividends Received	-	1,658	-			1,658
Proceeds on Disposal of Property, Plant & Equipment	-	4,959	30			4,959
Proceeds on Disposal of Financial Assets measured at FVTPL	19,585	8,083	-			8,110
Investment in Financial Assets measured at FVOCI	-	(232)	(164)			-
Net Proceeds from Disposal of Investments classified as FVOCI	5,190		-		-			-
Net Cash generated from / (used in) Investing Activities	12,842	(37,641)	(5,409)			5,773
Cash Flows from Financing Activities
Proceeds from Rights Issue of Shares	-	352,351	-			352,351
Proceeds from Long Term Loans	265,668	425,036	201,000			316,906
Repayment of Long Term Loans and Lease Liabilities	(143,573)	(211,654)	(54,453)			(137,044)
Net Lease Payment	(2,898)	(3,060)	(2,898)			(3,060)
Net Movement in Short Term Borrowings	59,164	(81,885)	191,115			(77,467)
Loans Obtained from Related Parties	11,550	-	-			-
Settlement of Loans Obtained from Related Parties	-		-		-			(26,926)
Net Cash generated from / (used in) Financing Activities	189,911		480,788		334,764			424,760
Net Increase/ (Decrease) in Cash & Cash Equivalents	(117,814)	314,877	(33,624)			402,099
Cash & Cash Equivalents at the beginning of the Year	(280,685)		(415,903)		(256,255)			(244,970)
Cash & Cash Equivalents at the end of the Period	(398,499)	(101,026)	(289,879)			157,129
Analysis of Cash & Cash Equivalents at the end of the Period
Cash in Hand & Bank	578,138	932,588	76,427			497,253
Bank & Other Borrowings	(976,637)		(1,033,614)		(366,306)			(340,124)
	(398,499)	(101,026)	(289,879)			157,129

Lankem Ceylon PLC

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