Madulsima Plantations : INTERIM FINANCIAL STATEMENT FOR THE PERIOD ENDED 31ST MARCH 2024

MADULSIMA PLANTATIONS PLC

833, Sirimavo Bandaranaike Mawatha - Colombo -14

Company Reg. No : PQ 184

INTERIM FINANCIAL STATEMENTS

THREE MONTHS ENDED 31ST MARCH 2024

MADULSIMA PLANTATIONS PLC

Interim Financial Statement for the Three Months Ended 31st March 2024

		CORPORATE INFORMATION
Company	:	Madulsima Plantations PLC
Legal Form	:	Public Listed Company
Date of Incorporation	:	22nd June 1992
Company Registration No	: P Q 184
Registered Office	: 833, Sirimavo Bandaranaike Mawatha , Colombo 14
Board of Directors	: Mr. D H S Jayawardena	Chairman
		Mr. C R Jansz	Non Executive Director
		Mr. M N S Perera	Executive Director
		Mr. D Hasitha S Jayawardena	Non Executive Director
		Mr. K Dayaparan	Non Executive Director
		Dr. A Shakthevale	Independent Director
		Mr. D S K Amarasekera	Independent Director
Secretary	:	Mr. P A Jayatunga
		833, Sirimavo Bandaranaike Mawatha
		Colombo 14.
Registrars	: Central Depository Systems (Pvt) Limited
		Ground Floor, M&M Center 341/5
		Kotte Road
		Rajagiriya.
Auditors	: Messrs. KPMG (Chartered Accountants)
		32A, Sir Mohamad Macan Markar Mawatha.
		Colombo 03.
Bankers	: Hatton National Bank PLC,
		City Office,
		16, Janadhipathi Mawatha,
		Colombo 01.
Managing Agent	: Melstacorp PLC
		110, Norris Canal Road,
		Colombo 10

Page No 01

MADULSIMA PLANTATIONS PLC

Interim Financial Statement for the Three Months Ended 31st March 2024

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	03 Months	03 Months	Variance
	Ended	Ended
	31/03/2024	31/03/2023	%
	Rs.'000	Rs.'000
Revenue	1,068,717	977,037	9
Cost of sales	(903,093)	(918,844)	2
Gross profit	165,625	58,193	185
Other operating income	38,019	33,785	13
Gain on change in fair value of biological assets	73,247	74,786	(2)
Administrative expenses	(20,305)	(20,238)	(0)
Profit from operating activities	256,586	146,526	75
Net finance cost	(163,056)	(251,820)	35
Profit or loss before income tax	93,530	(105,294)	189
Income tax (Charge)/Reversal	(44,776)	-
Profit / (Loss) for the period	48,754	(105,294)	146
Other comprehensive income /(expenses) for the period
Total Comprehensive income /(expense) for the period	-	-
	-	-	-
Total Comprehensive income /(expense)	48,754	(105,294)	146
Basic earnings/(loss) per share (Rs.)	0.29	(0.62)	146

Figures in brackets indicate deductions.

The above figures are not audited

Page No 02

MADULSIMA PLANTATIONS PLC

Interim Financial Statement for the Three Months Ended 31st March 2024

STATEMENT OF CHANGES IN EQUITY

	Stated	Available For	Timber	Accumulated	Revaluation	Total
	Capital	Sales Reserves	Reserve	Losses	Reserve	Equity
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 1st January 2023	1,624,760	2,780	4,178,968	(5,385,486)	1,349,935	1,770,957
Transferred to timber reserve	-	-	74,786	(74,786)	-	-
Profit/(Loss) for the period	-	-	-	(105,293)	-	(105,293)
Other comprehensive income / (expense)		-	-	-	-	-
Balance as at 31st March 2023	1,624,760	2,780	4,253,754	(5,565,565)	1,349,935	1,665,664
Balance as at 1st January 2024	1,624,760	3,036	4,690,955	(7,047,040)	1,055,815	327,526
Transferred to timber reserve			73,247	(73,247)		-
Profit/(Loss) for the period				48,754		48,754
Other comprehensive income / (expense)				-		-
Balance as at 31st March 2024	1,624,760	3,036	4,764,202	(7,071,533)	1,055,815	376,280

Figures in brackets indicate deductions.

The above figures are not audited

Page No 03

MADULSIMA PLANTATIONS PLC

Interim Financial Statement for the Three Months Ended 31st March 2024

STATEMENT OF FINANCIAL POSITION
	Unaudited	Unaudited
As At	31/03/2024	31/12/2023
	Rs.'000	Rs.'000
Assets
Non-current assets
Right to use of land	100,505	147,638
Immovable estate assets on finance lease (other than bare Land)	293,854	301,239
Tangible assets other than biological assets	1,259,084	1,282,859
Bearer biological assets	1,125,533	1,109,682
Consumable biological assets	5,059,523	4,979,627
Investment in Equity Securities-FVOCI	4,253	4,253
Total non-current assets	7,842,751	7,825,298
Current Assets
Produce bearer biological assets	8,020	7,811
Inventories	567,622	548,959
Trade and other receivables	255,590	138,098
Amounts due from related companies	11,231	2,983
Cash and cash equivalents	39,020	10,831
Total current assets	881,481	708,682
TOTAL ASSETS	8,724,233	8,533,980
EQUITY AND LIABILITIES
Capital and reserves
Stated capital	1,624,760	1,624,760
Timber reserve	4,764,202	4,691,163
Revaluation reserve	1,055,815	1,055,815
Fair value through OCI reserve	3,036	3,036
Accumulated losses	(7,071,533)	(7,041,687)
Total equity	376,280	333,087
Non-current liabilities
Interest bearing borrowings	4,351,733	4,201,285
Retirement benefit obligations	1,278,584	1,287,755
Deferred tax liability	1,106,072	1,061,295
Deferred income and capital grants	119,452	117,956
Lease liability to-SLSPC and JEDB	90,353	139,663
Total non-current liabilities	6,946,194	6,807,954
Current liabilities
Trade and other payable	562,660	457,522
Lease liability to-SLSPC and JEDB	12,639	12,639
Amounts due to related companies	122,011	119,854
Interest bearing borrowings	599,852	600,000
Bank overdraft	104,598	202,924
Total current liabilities	1,401,759	1,392,939
Total liabilities	8,347,953	8,200,893
TOTAL EQUITY AND LIABILITIES	8,724,233	8,533,980
Net Assets per share	2.22	(0.86)

It is certified that these interim financial statements have been prepared in accordance with the requirements of the Companies Act No 07 of 2007.

- Signed -

D S Heenatigalage

General Manager - Finance

The Board of Directors is responsible for the preparation and presentation of these interim financial statements. Approved and signed for and behalf of the Board of Directors of Madulsima Plantations PLC.

- Signed -	- Signed -
C R Jansz	M A N S Perera
Director	Director
Colombo, 13th May 2024
	Page No 04

MADULSIMA PLANTATIONS PLC

Interim Financial Statement for the Three Months Ended 31st March 2024

STATEMENT OF CASH FLOWS
	03 Months	03 Months
	Ended	Ended
	31/03/2024	31/03/2023
	Rs.'000	Rs.'000
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/(Loss) before taxation	93,530	(105,293)
Adjustments for:
Depreciation	38,140	51,493
Interest income	(47)	(54)
Interest expenses	163,056	251,820
Provision for retirement benefit obligations	30,020	13,663
Gain on fair valuation of timber plantations	(73,247)	(74,786)
Amortization of capital grants	(885)	(1,316)
Operating profit /(loss) before working capital changes	250,566	135,527
(Increase)/decrease in inventories	(18,664)	(65,876)
(Increase)/decrease in trade and other receivables	(117,491)	(349,992)
(Increase)/decrease in amounts due from related companies	(8,248)	253
Increase/(decrease) in trade and other payable	105,137	244,507
Increase/(decrease) in amount due to related companies	2,156	(26,579)
Cash generated from operating activities	213,457	(62,160)
Finance cost paid	(8,000)	(13,929)
Retirement benefit obligation paid	(40,934)	(21,932)
Net cash flows from operating activities	164,523	(98,021)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(3,000)	(1,531)
Investments in immature plantations	(22,752)	(19,249)
Investments in timber plantations	(6,648)	(7,860)
Interest received	47	54
Net cash flows from investing activities	(32,353)	(28,586)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of government lease rentals	(5,657)	(7,083)
Loans repayment	-	(50,000)
Net cash flows from financing activities	(5,657)	(57,083)
Net increase/(decrease) in cash and cash equivalents	126,514	(183,688)
Cash and cash equivalents at the beginning of the period	(192,092)	22,472
Cash and cash equivalents at the end of the period - Note A	(65,579)	(161,218)
Note A
Cash and cash equivalents	39,020	8,977
Bank overdraft	(104,598)	(170,197)
	(65,579)	(161,220)

Figures in brackets indicate deductions.

The above figures are not audited

Page No 05

MADULSIMA PLANTATIONS PLC

Interim Financial Statement for the Nine Months Ended 31st March 2024

NOTES TO THE INTERIM FINANCIAL STATEMENTS

SEGMENTAL INFORMATION

Geographical segment		Madulsima Region		Bogawantalawa Region	TOTAL
		Uva High	Uva Medium	Western High
For the 03 months ended	31/03/2024	31/03/2023	31/03/2024	31/03/2023	31/03/2024	31/03/2023	31/03/2024	31/03/2023
		Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
(a) Segment revenue
Revenue		321,414	300,660	203,188	198,802	544,116	477,575	1,068,717	977,037
Cost of sales		(279,801)	(321,755)	(183,736)	(205,898)	(439,556)	(383,057)	(903,093)	(918,844)
Gross profit		41,614	(21,095)	19,452	(7,096)	104,559	94,518	165,625	58,193
Unallocated
Other operating income							38,019	33,785
Administrative expenses							(20,305)	(20,238)
Profit from operating activities							183,339	71,740
Gain on change in fair value of biological assets						73,247	74,786
Finance cost								(163,056)	(251,820)
Profit or loss before income tax							93,530	(105,294)
Income tax (Charge)/Reversal							(44,776)	-
Profit/(Loss) for the period							48,754	(105,294)
(b) Segment assets
As at		31/03/2024	31/03/2023	31/03/2024	31/03/2023	31/03/2024	31/03/2023	31/03/2024	31/03/2023
		Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Non-current assets		118,545	101,061	52,380	58,738	278,941	212,103	449,866	371,902
Current assets		528,200	334,905	163,984	172,758	278,414	334,490	970,598	842,153
		646,745	435,966	216,363	231,496	557,355	546,593	1,420,463	1,214,055
Unallocated
Non-current assets								7,176,019	7,018,981
Current assets								127,750	275,927
Total assets								8,724,233	8,508,963
(c) Segment liabilities
Non-current liabilities	477,309	491,500	282,402	273,923	567,817	571,510	1,327,528	1,336,933
Current liabilities		360,860	314,693	109,684	103,846	172,471	210,157	643,015	628,696
		838,169	806,193	392,085	377,769	740,288	781,667	1,970,542	1,965,629
Unallocated
Non-current liabilities							5,618,666	4,021,967
Current liabilities								758,745	855,703
Total liabilities								8,347,953	6,843,299
Capital expenditure - Allocated	8,638	8,448	3,568	6,559	18,560	13,581	30,766	28,588
- Unallocated								458	52
								31,225	28,640
Depreciation	- Allocated	13,259	10,962	8,305	6,595	12,823	10,076	34,386	27,633
- Unallocated								3,709	23,859
								38,095	51,492

Figures in brackets indicate deductions.

The above figures are not audited

Page No 06

MADULSIMA PLANTATIONS PLC

Interim Financial Statement for the Nine Months Ended 31st March 2024

NOTES TO THE INTERIM FINANCIAL STATEMENTS

01. Approval of the financial statement

These interim financial statements of the Company for the period ended 31st March 2024 were approved by the Board of Directors on 13th May 2024.

02. Basis of preparation

The Interim Financial Statements have been prepared in accordance with the Accounting Policies set out in the most recent Annual Report of the Company and are in compliance with Sri Lanka Accounting Standards LKAS 34 - Interim financial reporting.

03. 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 2022.

04. No circumstances have arisen since the Statement of Financial Position date, which would require adjustment to or disclosure in the Interim Financial Statements.

05. The aggregate value of the non-current related party balance of the loans obtained from the parent company Melstacorp PLC has exceeded 10% of the equity.

06. The presentation and classification of the Financial Statements of the previous periods have been amended, where relevant, for better presentation and to be comparable with those of the current period.

INVESTOR INFORMATION
01. Market Price Per Share	Quarter ended	Quarter ended
	31/03/2024	31/03/2023
Highest during the period Rs.	11.50	12.50
Lowest during the period Rs.	9.50	10.40
Closing price Rs.	9.90	11.20
02. Directors' Shareholding
Name	As at 31/03/2024	As at 31/03/2023
Mr. D H S Jayawardena - Chairman	Nil	Nil
Mr. C R Jansz -Non Executive Director	Nil	Nil
Mr. M A N Sampath Perera -Executive Director	Nil	Nil
Mr. D Hasitha S Jayawardena - Non Executive Director	Nil	Nil
Mr. K Dayaparan - Non Executive Director	Nil	Nil
Dr. A Shakthevale -Independent Director	Nil	Nil
Mr. D S K Amarasekara - Independent Director	Nil	Nil
Chief Executive Officer's holding in shares
Mr. M A Fernando	Nil	Nil

Page No 07

MADULSIMA PLANTATIONS PLC

Interim Financial Statement for the Nine Months Ended 31st March 2024

INVESTOR INFORMATION

03. Twenty (20) Largest Shareholders as at 31st March 2024

No	Name of Shareholder

• MELSTACORP PLC

• STASSEN EXPORTS (PVT) LIMITED
  3 SECRETARY TO THE TREASURY
  4 PEOPLE'S LEASING & FINANCE PLC /MRS. C.M. DISSANAYAKE
  5 MR. M.H. NASSIM HUSSAIN
  6 DR. A.A.M. DHARMADASA
  7 ALLIED SECURITY SERVICES (PVT) LTD
  8 MR. T.D.P. MADURANGA

• DEUTSCHE BANK AG SINGAPORE A/C 2 (DCS CLT ACC FOR DEUTSCHE BANK AG SINGAPORE- PWM WM CLIENT)

1. PEOPLE'S LEASING & FINANCE PLC/MR.W.M.D.I.P. ABEYRATHNE
2. MR. L.C. PIETERSZ
3. SEYLAN BANK PLC/SENTHILVERL HOLDINGS (PVT) LTD
4. MR. V. JAYAPRAGASAM
5. MR. A.V.R. DE SILVA JAYATILLEKE
6. MR. T. LOGANATHAN
7. PMF FINANCE PLC/ H.A.U. CHAMINDA
8. CEYLON CAPITAL MARKET ADVISORS LIMITED
9. SAMPATH BANK PLC/HI-LINE TRADING (PRIVATE) LIMITED
10. MR. M.R. LAFFIR
11. DR. G.S. PERERA
    Sub Total
    Other Shareholders Grand Total
    Percentage of shares held by the public
    Number of Shareholders representing public shareholdings Float adjusted market capitalization

No. of Shares	% of issued
capital
94,429,833	55.71
62,685,831	36.98
3,800,000	2.24
428,364	0.25
215,147	0.13
205,778	0.12
200,299	0.12
187,732	0.11
149,090	0.12
138,950	0.08
118,200	0.07
117,772	0.07
100,001	0.06
100,000	0.06
99,639	0.06
94,000	0.06
87,682	0.05
85,000	0.05
73,289	0.04
70,743	0.04
	-
163,387,350	96.39
6,113,747	3.61
169,501,097	100.00
31/03/2024	31/03/2023
7.31%	7.25%
19,049	19,131
122,666,249	137,580,923

Minimum public holding requirement

The float adjusted Market Capitalization of the company falls under Option 05 of Rule 7.13.1 (a) of the Listing Rules of the Colombo Stock Exchange and the company has not compiled with the minimum public holding percentage requirement applicable under the said option.

Page No 08