hemas power plc | annual report 2012/13 · hemas power plc | annual report 2012/13 financial...

Hemas Power PLC | Annual Report 2012/13


Hem

as Power PLC | A

nnual Report 2012/13

Legal FormQuoted Public Company with limited liability listed on the Colombo Stock Exchange on 8th October 2009

Date of Incorporation11th June 2003

Company Registration numberPV 415 PB PQ

Accounting year end31st March

Registered Office“Hemas House,”No. 75, Braybrooke Place,Colombo 2.

Websitewww.hemas.com

AuditorsErnst & YoungChartered AccountantsNo. 201, De Saram Place,Colombo 10.

DirectorsImtiaz Esufally (Chairman)Kishantha Nanayakkara (Managing Director)Husein EsufallyMalinga ArsakularatneSanjiva SenanayakeProfessor Malik RanasingheRiad Ameen

SecretariesHemas Corporate Services (Pvt) Ltd“Hemas House”No. 75, Braybrooke Place,Colombo 2Telephone: 4 731731 (hunting)Facsimile: 4 731777

CORPORATE INFORMATION

RegistrarsSSP Corporate Services (Pvt) LtdNo. 101, Inner Flower RoadColombo 3Telephone 2573894Facsimile 2573609

BankersCommercial Bank of Ceylon PLCHong Kong & Shanghai Banking Corp. LtdStandard Chartered BankHatton National Bank PLC

Produced by Copyline (Pvt) Ltd Printed by Printel (Pvt) Ltd

Financial Highlights 2Chairman’s Statement 4Managing Director’s Review 5Board of Directors 8Financial Review and Investor Information 9Corporate Social Responsibility 16Risk Management 18Corporate Governance 20Audit Committee Report 28Annual Report of the Directors on the

Affairs of the Company 29Statement of Directors’ Responsibility 34Independent Auditors’ Report 35Statement of Financial Position 36Income Statements 37Statements of Comprehensive Income 38Statement of Changes in Equity 39Statement of Cash Flows 40Notes to the Financial Statements 41Five Year Summary 81Notice of Meeting 82Form of Proxy 83Corporate Information Inner Back Cover


Contents

2Hemas Power PLC | Annual Report 2012/13

FINANCIAL HIGHLIGHTS

12/13

11/12

10/11

56 6058 64 66 7062 68 72

Dividend Payout

%

68.03

60.67

69.78

12/13

11/12

10/11

0

4020 80 100

14060 120

160

Finance Cost

Rs.Mn

137

78

82

Figures in 2013 and 2012 are presented as per SLFRS. Year while 2011 is given in SLAS.

12/13

11/12

10/11

100

200

300

400

500

Rs.Mn

282

250

426

Year Ended 31st March 2013 2012 Change 2011Rs. Rs. Rs.

Operating Results

Group Revenue (Rs.) 5,618,973,609 4,510,004,413 25% 3,411,904,974

Dividends (Rs.) 175,280,003 250,400,004 -30% 162,760,003

Return on Equity(%) 9.88% 9.27% 7% 14.23%

Dividends Payout (%) 68.03% 60.67% 16% 69.78%

Market Capitalisation (Rs.) 2,616,680,042 2,754,400,044 -5% 4,482,160,072


Rs. 282 Mn12.30%

Rs. 2.9 BnRs. 22.82


CHAIRMAN’S STATEMENT

Imtiaz EsufallyChairman

power generation is pointed towards an

planning on procuring generation capacity

stake in Panasian Power PLC (PAP). We

acquisition.


27 May 2013


MANAGING DIRECTOR’S REVIEW

Kishantha NanayakkaraManaging Director

are prepared and presented in accordance

operations since it was commissioned

Accordingly, your Company reported

Thermal Power Operation

plants, is a nationally important power plant.

minimum generated energy amount as per

delays in CEB payments and rise in oil prices.


Hydro Power Operation

MagalGanga Plant.

generated 7.9 million units at 35 % plant-

estimated.

Sector Outlook and Future

level and an increasing electricity

MANAGING DIRECTOR’S REVIEW CONTD...


100.0 MW Heladhanavi Thermal Power Plant in Puttalam 2.4 MW Magalganga Hydro Power Plant in Maliboda 2.6 Mw Agraoya Hydro Power Plant in Lindula

energy security, power generation using progress as it will create an unequal playing

generation capacity we acquired a 29.3% stake in Panasian Power PLC (PAP). PAP

great team work across all levels including management and operational teams. My

G. A. K. NanayakkaraManaging Director


Mr. Imtiaz EsufallyChairman

Arts (Honours) degree in Accounting and

April 2012.

Mr. Kishantha NanayakkaraManaging Director

during a career spanning over 20 years. Mr.

Mr. Husein EsufallyNon -Executive Director

Power PLC in 2009 and stepped down in

Mr. Malinga ArsakularatneNon-Executive Director

Mr. Sanjiva SenanayakeIndependent Director

positions in national and international

Asian Hotels and Properties PLC and Hemas

Prof. Malik RanasingheIndependent Director

Engineering PLC.

Mr. Riad AmeenNon-Executive Director

BOARD OF DIRECTORS


FINANCIAL REVIEW AND INVESTOR INFORMATION

- Group

- Thermal Power Sector

interest income on delayed payments

- Hydro Power Sector

Sector Performance - Rs. Million

2012/13 2011/12

194 186

Hydro 147 88

- Rs. Million

0

50

100

150

200

250

300

350

400

450

Rs.Mn

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

230

244

426

250 28

2

- Rs. Million

0

50

100

150

200

250

Rs.Mn

08/0

924

2

09/1

018

486

10/1

123

818

8

11/1

218

688

12/1

314

719

4

Hydro

15

Revenue- Group

loans.

operations at Magal Ganga plant.


- Thermal Power Sector

- Hydro Power Sector

company invested Rs. 110 million on quoted

Sector Performance - Rs. Million

2012/13 2011/12

5,389 4,325

Hydro Power 222 146

0

1,000

2,000

3,000

4,000

6,000

5,000

Rs.Mn

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

4,87

0

2,86

7 3,41

2

4,51

0

5,61

9

Finance CostFinance cost increased 76% to Rs.137

Finance Cost and Interest Cover

0 1

50

100

150

200

250

4

5

6

2

3

300 7

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

251

1.92

1.80

235

826.

24

784.

2

137

3.05

Finance Cost (Rs.Mn)

FINANCIAL REVIEW AND INVESTOR INFORMATION CONTD...

Capital Structure

Long Term Gearing

0

5

10

15

20

25

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

20.6

2

5.96

13.2

7

12.9

5

12.3

Investments and Capital Expenditure

started investing in Panasian Power PLC (PAP)

Taxation


Net Assets per Share

Shareholders’ Funds and Net Assets per Share

Shareholder ReturnsEarnings per Share

year.

Earnings per Share

0

0.5

1

1.5

2

2.5

3

3.5

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

2.37

2.12

3.3

2.00 2.

26

Price Earnings Ratio

9 times, compared to 11 times recorded at

and Energy sector PER too was at 11.7 times

Dividends

Dividends Payout and Dividend Cover

0 1

10

20

30

40

50

70

60 2.5

1.5

2

80 3

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

2.82

35.4

2

2.39

41.8

2

1.43

69.7

8

1.65

60.6

7

1.47

68.0

3

Dividend Payout (%)Dividend Cover

Interest Cover


As at 31st March 2013 2012Name No. of Shares % No. of Shares

1 Hemas Holdings PLC 93,900,000 75.00 93,900,000

7 Mr. M M Faud 433,435 0.35 690,300

9 Mr. H Beruwalage 419,200 0.33 419,200

15 Mr. D P Pieris 300,000 0.24 300,000

17 Navara Capital Ltd 300,000 0.24 325,500

106,211,969 84.83 - 18,988,033 15.17 -

Investor Information

List of 20 Major Shareholders

Shareholdings Resident Non- Resident Total

No. ofShareholders

No. ofShares

Percentage (%)

No. ofShareholders

No. ofShares

Percentage (%)

No. ofShareholders

No. of Shares Percentage (%)

2,429 1,124,952 0.90 7 6,000 0.00 2,436 1,130,952 0.90

987 3,433,188 2.74 21 94,000 0.08 1,008 3,527,188 2.82

10,001 to 100,000 246 7,736,209 6.18 16 634,800 0.51 262 8,371,009 6.69

100,001 to 1,000,000 42 9,542,919 7.62 7 1,690,829 1.35 49 11,233,748 8.97

5 100,937,105 80.62 - - - 5 100,937,105 80.62

3,709 122,774,373 98.06 51 2,425,629 1.94 3,760 125,200,002 100.00

Categories of Shareholders No of Shareholders No of Shares

3,580 17,327,565

180 107,872,437

3,760 125,200,002

FINANCIAL REVIEW AND INVESTOR INFORMATION CONTD...


Computation of % of Public Shareholding

As at 31st March 2013 2012No. of Shares No. of Shares

Over 10% Holding / Parent CompanyHemas Holdings PLC 93,900,000 93,900,000 93,900,000 93,900,000

Directors Direct Shareholding

Mr. W M De F Arsakularatne 2,900 2,900Mr. M R Ameen 8,100 8,100

126,002 126,002

Mr. W M De F Arsakularatne - -Mr. M R Ameen - -

22,200 22,200

Less

31,151,800 31,151,800 24.88% 24.88%

Share Trading Information 2013 2012

Market Price

Lowest (Rs.) 17.20 20.08.2012 18.00 14.02.2012As At Year ended (Rs.) 20.90 31.03.2013 22.00 31.03.2012

Market Capitalisation (Rs.) 2,616,680,042 2,754,400,044


HYDROPOWERSECTOR...

Rs. 147 Mn (PAT)over its previous year


2.6 Mw Agraoya Hydro Power Plant in Lindula


Resource Management

and inclusiveness in our great resource

Performance review, training and development

overseas. Companies generally opt to sign a

Health and Safety

workplace.

Regulation Compliance and Environment Protection

CORPORATE SOCIAL RESPONSIBILITY


requirements.

Noise pollution is a common environmental

environmental protection license renewed

powergeneration. As we mentioned earlier,

requirements, at development and

Giddawa, AgraOya and MagalGanga.

island-wide.

natural resources. Rural communities live in

“Piyawara” Early Childhood Development Program 100.0 MW Heladhanavi Thermal Power Plant in Puttalam 2.0 Mw Giddawa Hydro Power Plant in Digana


RISK MANAGEMENT

well-structured Risk Management Framework

Description of Risk Mitigating Actions

Business Risk

estimates and assumptions

Default Risk

datespower plants

Growth Risk

Interest Rate Risk

Exchange Rate Risk

risk management tools

tolerance limits.


Description of Risk Mitigating Actions

Regulatory and Compliance Risk

Credit Risk

Risk arising due to Adverse Environmental Conditions

Project Development Risk

Human Resource Risk

retaining required talent

Project Cost Overrun Risk

returns

Operational RiskCommittee

preparedness


Hence at Hemas Power we aim to create

our risks and resources including capital appropriately.

CORPORATE GOVERNANCE

Best Practice on Corporate Governance

Corporate Governance Principle Principle No. Level of Compliance

Directors

A. 1.1

meetings.

Name of Director BoardMeetings

Audit Committee

Meetings

7/7 -

6/7 -

7/7 -

Mr. Malinga Arsakularatne (NED) 6/7 3/4

7/7 4/4

7/7 4/4

Mr. Riad Ameen (NED) 6/7 -



A. 1.2

Report.

A. 1.3

A. 1.4

A. 1.5

parties.

A. 1.6

A. 1.7

Managing DirectorA. 2.1

is preserved.

A. 3.1

Directors



Financial Acumen A. 4

Board Balance A. 5.1

A. 5.2

A. 5.3

A. 5.4

A. 5.5

DirectorA. 5.6

A. 5.7

A. 6.1

A. 6.2

A. 7.1

A. 7.2

CORPORATE GOVERNANCE CONTD...



A. 7.3

A. 8.1

A. 8.2

Meeting.

A. 9.1

DirectorsA. 10.1

A. 11.1

A. 11.2

Directors’ Remuneration

Remuneration Procedure B. 1.1

Parent Company.

B. 1.2

meetings.

B. 1.3

B. 2.1



B 2.2

B. 2.3in determining annual salary increases.

B. 2.4

B. 3.1

Relations with Shareholders

MeetingC. 1

C. 1.2

C. 1.3

C. 1.4

C. 1.5

C. 2

Financial Reporting D. 1.1

D. 1.2

D. 1.3

D. 1.4

D. 1.5

D. 2




Audit Committee D. 3.1

D. 3.2

D. 3.3

D. 3.4Report.

D. 4.1

D. 4.2

Corporate Governance Disclosures D. 5.1

Institutional & Other Investors

E. 1investors.

Other Investors

F. 1

F. 2


Colombo Stock Exchange Listing Rules Disclosures Pertaining to Corporate Governance Practices

CSE Rule No. RequirementStatus of

complianceReference to Annual Report

7.10.1.Directors(NEDs)

Corporate Governance Report.

7.10.2 (a) Corporate Governance Report.


7.10.3(a) Disclosure relating to Directors


Disclosure relating to Directors


7.10.3(c)

Report

7.10.4 Corporate Governance Report.

Rules relating to Remuneration Committees

7.10.5(a)Remuneration Committee

independent.

Corporate Governance Report,

Directors.

Remuneration Committee


7.10.5 (c)Report


Directors.



CSE Rule No. RequirementStatus of

complianceReference to Annual Report

Rules relating to Audit Committees

7.10.6.( a)Committee

Corporate Governance

Committee Report.

Committee

Accounting standards.

related regulations and requirements.

controls and risk management are adequate.


Report.

7.10.6.(c)Report Committee. and Audit Committee Report.


Auditors.

Composition of the Committee

Meetings

and Control also attended meetings to

Attendance at the Audit Committee Meetings

Mr. Malinga Arsakularatne 3/4

Financial Reporting

Internal Controls

internal control and risk management

AUDIT COMMITTEE REPORT

consultants.

Internal Audit

and associated risk management and

Group and Company.

Audit Committee.

External Audit

last Annual General Meeting Messrs. Ernst

under review.

process.

process prior to making a recommendation

Hemas Group.

interest.

Conclusion

Company is secure.

Sanjiva SenanayakeChairman


ANNUAL REPORT OF THE DIRECTORS ON THE AFFAIRS OF THE COMPANY

Principal Activity

contravenes any Laws and Regulations.

Business Review

Financial Results

Year ended 31st March2013 2012

Revenue 5,618,973,609 4,510,004,413

Accounting Policies

Property, Plant and Equipment

Rs. 52,940,792/-(2012- 286,937,919/-)respectively.

2,392,504,180/- (2012- Rs. 2,548,808,006/-) respectively.

Investments

investments amounted to Rs. 1,432,180,467/- (2012 Rs. 1,432,180,467/-) Detailed

Reserves

2013 amounted to Rs. 374,060,043/- (2012 – Rs 404,909,954/-)

Directorate

Board Committees

Audit Committee

Audit CommitteeMr. Sanjiva Senanayake – ChairmanProf. Malik RanasingheMr. Malinga Arsakularatne

Remuneration Committee

Company.

Mr. J. C. L. De MelMr. M. E. Wickremesinghe

Annual Report.

Directors’ indemnity & Insurance

Share Capital

Share Information

2013 2012 31.03.13 01.04.12 31.03.12

Mr. W M De F Arsakularatne 2,900 2,900 2,900

Mr. M R Ameen 8,100 8,100 8,100Indirect holding

Directors’ Shareholding


Related Party TransactionsDisclosures pertaining to related party

Report.

Related party transactions exceeding 10% of the Equity or 5% of the total assets of the Company.

Dividends

250,400,002/-)

15,147,888/- (2012 - Rs. 24,298,214/-)

Corporate Governance

relevant Corporate Governance practices

Lanka.

Risk Management

Report

Environmental Protection

environmental laws, regulations, and

Outstanding Litigation

Employees

Report.

respectively.

Statutory payments

report.

Corporate Donations

73

Going concern

inquiries and reviews including reviews on

Shareholders

Auditors

2013 2012Rs. Rs.

Audit Fees 239,584 137,500

audit services 270,520 257,208

independence.

Annual General Meeting


Kishan NanayakkaraManaging Director

Hemas Corporate Services (Pvt) Ltd.Secretaries

ANNUAL REPORT OF THE DIRECTORS ON THE AFFAIRS OF THE COMPANY CONTD...


Company Director Nature of Transaction Value 2013 Rs.

Value 2012 Rs.

Hemas Holdings PLC Consultancy Fees 360,230 342,858

1,240,555 990,574

Loan207,715 368,219

57,143 57,143

28,886 70,854

Loan1,969,614

2,090,625 744,165

Mr. Malinga Arsakularatne

1,995,191 262,668


675,040 642,571


- 360


Giddawa Hydro Power (Pvt) Limited 28,300,000 35,878,566

Funds Received 32,099,500 52,800,000

Mr. Malinga Arsakularatne 3,000,000 4,500,000

47,250,003 47,250,003

Loan13,500,000 13,536,986

Funds Received 56,799,500 56,000,000

26,200,000 2,000,000

239,770 80,723


Okanda Power Grid (Pvt) Limited Funds Received 44,300,000

58,455,000 156,725,550

Ella Dendro Electric (Pvt) Limited 85,354,172 35,091,704

Butama Hydro Electricity Company Limited 55,776,260 33,638,706

Directors Interest In Contracts With The Company


THERMALPOWERSECTOR...

Rs. 194 Mn (PAT)


period.

irregularities.

Compliance Report

resources to continue in operational

Hemas Power PLC

Hemas Corporate Services (Pvt) Ltd.Secretaries

STATEMENT OF DIRECTORS’ RESPONSIBILITY IN PREPARING FINANCIAL STATEMENTS


INDEPENDENT AUDITORS REPORT

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF HEMAS POWER PLC

Report on the financial statementsWe have audited the accompanying financial statements of Hemas Power PLC (“Company”), the consolidated financial statements of the Company and its subsidiaries which comprise the statements of financial position as at 31 March 2013, and the income statements, statements of comprehensive income,statements of changes in equity and statements of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with Sri Lanka Accounting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Scope of audit and basis of opinionOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting policies used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion.

OpinionIn our opinion, so far as appears from our examination, the Company maintained proper accounting records for the year ended 31 March 2013 and the financial statements give a true and fair view of the Company’s financial position as at 31 March 2013 and its

financial performance and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.

In our opinion, the consolidated financial statements give a true and fair view of the financial position as at 31 March 2013 and its financial performance and cash flows for the year then ended, in accordance with Sri Lanka Accounting Standards, of the Company and its subsidiaries dealt with thereby, so far as concerns the shareholders of the Company.

Report on other legal and regulatory requirementsThese financial statements also comply with the requirements of Sections 151(2) and 153(2) to 153(7) of the Companies Act No. 07 of 2007.

27 May 2013Colombo.


STATEMENT OF FINANCIAL POSITION

Group CompanyAt 01 April At 01 April

2013 2012 2011 2013 2012 2011As at 31 March Note Rs. Rs. Rs. Rs. Rs. Rs.

ASSETSNon-Current AssetsProperty, Plant and Equipment 3 2,392,504,180 2,548,808,006 2,469,537,770 30,652,650 24,067,195 17,567,986

Goodwill 6 126,752,566 126,752,566 126,752,566 - - - 2,688,355,126 2,702,761,084 2,656,832,777 1,779,506,023 1,756,168,656 1,345,163,222

Current Assets

2,536,994,567 2,390,667,516 1,941,604,814 322,182,764 475,335,354 1,015,853,660TOTAL ASSETS 5,225,349,693 5,093,428,600 4,598,437,591 2,101,688,787 2,231,504,010 2,361,016,882

EQUITY AND LIABILITIES

Revenue Reserves 12 374,060,043 404,909,955 299,002,411 - - -

Retained Earnings 939,656,446 809,287,315 915,769,247 153,611,354 305,229,427 498,316,662

of the Parent 2,857,477,702 2,695,870,699 2,754,654,615 1,693,494,311 1,845,112,384 2,038,199,619

Total Equity 2,859,978,548 2,698,371,545 2,754,654,615 1,693,494,311 1,845,112,384 2,038,199,619

401,290,876 401,280,216 583,210,094 131,992,938 137,190,673 135,766,452

1,964,080,269 1,993,776,839 1,260,572,882 276,201,538 249,200,953 187,050,811TOTAL EQUITY AND LIABILITIES 5,225,349,693 5,093,428,600 4,598,437,591 2,101,688,787 2,231,504,010 2,361,016,882

Waruna SugathapalaHead of Finance

Kishantha Nanayakkara Malinga ArsakularatneManaging Director Director


INCOME STATEMENT

Group CompanyYear ended 31 March 2013 2012 2013 2012

Note Rs. Rs. Rs. Rs.

Revenue 18 5,618,973,609 4,510,004,413 90,689,820 120,496,693

582,051,348 500,559,929 90,689,820 120,496,693

Finance Cost 20.1 (137,195,502) (78,360,086) (8,757,180) (15,975,013)

21 281,349,591 251,099,650 23,661,930 58,249,973

282,451,844 249,825,616 23,661,930 57,312,769


STATEMENT OF COMPREHENSIVE INCOME


Rs. Rs. Rs. Rs.

282,451,844 249,825,616 23,661,930 57,312,769

Other Comprehensive Income

Land Revaluation 12,256,245 - - -

Other Comprehensive Income for the Year, Net of Tax 62,087,784 (58,209,528) - -

Total Comprehensive Income for the Year, Net of Tax 344,539,628 191,616,088 23,661,930 57,312,769


STATEMENT OF CHANGES IN EQUITYHe

at R

ate

&

O

ther

Com

pone

nt o

f Equ

ity

Capi

tal

Rese

rve

Rese

rve

Rese

rve

Hedg

eSa

les R

eser

veEa

rnin

gsto

Equ

ity H

olde

rsIn

tere

stEq

uity

ofth

ePa

rent

Note

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Grou

pAs

at 0

1 Ap

ril 2

011

1,

539,

882,

957

69,8

28,5

8522

9,17

3,82

6-

--

915,

769,

247

2,75

4,65

4,61

5-

2,75

4,65

4,61

5

Net M

ovem

ent i

n

Tota

l Com

preh

ensi

ve In

com

e-

-

--

(58,

209,

528)

-24

9,82

5,61

619

1,61

6,08

8-

191,

616,

088

Divi

dend

s -

As a

t 31

Mar

ch 2

012

1,53

9,88

2,95

714

6,25

9,38

325

8,65

0,57

2-

(58,

209,

528)

-80

9,28

7,31

52,

695,

770,

699

2,50

0,84

62,

698,

371,

545

Net M

ovem

ent i

n

Fina

ncia

l Ass

ets

-

--

--

14,7

67,0

67-

14,7

67,0

67-

14,7

67,0

67

Tota

l Com

preh

ensi

ve In

com

e-

--

12,2

56,2

4535

,064

,472

14,7

67,0

6728

2,45

1,84

434

4,53

9,62

8-

344,

539,

628

Divi

dend

s -

Rese

rve

-Net

12-

(23,

197,

290)

--

--

23,1

97,2

90-

--

As a

t 31

Mar

ch 2

013

1,53

9,88

2,95

712

3,06

2,09

325

0,99

7,95

012

,256

,245

(23,

145,

056)

14,7

67,0

6793

9,65

6,44

62,

857,

477,

702

2,50

0,84

62,

859,

978,

548

Stat

edRe

tain

edTo

tal

Capi

tal

Earn

ings

Equi

tyNo

teRs

.Rs

.Rs

.

Com

pany

At 3

1 M

arch

201

1

1,

539,

882,

957

498,

316,

662

2,03

8,19

9,61

9

As a

t 31

Mar

ch 2

012

1,53

9,88

2,95

730

5,22

9,42

71,

845,

112,

384

As a

t 31

Mar

ch 2

013

1,53

9,88

2,95

715

3,61

1,35

41,

693,

494,

311


STATEMENT OF CASH FLOWS


Note Rs. Rs. Rs. Rs.

Cash Flows From/(Used in) Operating Activities

Adjustments for Depreciation 3 218,396,661 207,667,682 7,461,959 4,934,574

Finance Cost 20 137,195,502 78,360,086 8,757,180 15,975,013

644,740,128 511,907,797 36,268,977 69,649,048

Finance Cost Paid (115,233,521) (54,061,872) (423,383) (868,513)

Net Cash Flows From/(Used in) Operating Activities 330,610,020 (329,648,850) (28,221,073) 311,021,727

Cash Flows From/(Used in) Investing Activities

Loans Given to Related Parties - (80,000,000) - (80,000,000)

Net Cash Flows Used in Investing Activities (130,664,120) (286,596,551) 2,181,035 (469,321,662)

Cash Flows From/(Used in) Financing Activities

Net Cash Flows Used in Financing Activities (156,871,881) (393,453,302) (190,427,891) (265,506,504)

Net Increase/(Decrease) in Cash and Cash Equivalents 43,074,019 (1,009,698,703) (216,467,929) (423,806,439) 10 (672,413,668) 337,285,036 262,886,400 686,692,838

Cash and Cash Equivalents at the end of the Year 10 (629,339,649) (672,413,668) 46,418,471 262,886,400

Analysis of Cash and Cash Equivalents

Cash and Cash Equivalents at the End for the Purpose of Cash Flow Statement (629,339,649) (672,413,668) 46,418,471 262,886,400


NOTES TO THE FINANCIAL STATEMENTS

1. CORPORATE INFORMATION

1.1 General

1.2 Consolidated Financial Statements

1.3 Principal Activities and Nature of Operations

to produce independent power and

Giddawa Hydro Power (Pvt) Ltd., (a

2006 and commenced its commercial

plant) and commenced its commercial

Ella Dendro Electric (Pvt) Limited (a

Hydro Electricity Company Limited ( a

1.4 Parent Enterprise and Ultimate Parent Enterprise

ultimate parent undertaking and controlling party is Hemas Holdings

2. GENERAL POLICIES

2.1 Basis of Preparation and Adoption of SLAS (SLFRS and LKAS) Effective for the Period Beginning on or after 01 April 2012

2.1.1 Going Concern

to continue as a going concern and

or to cease trading.

2.1.2 Basis of consolidation

any non-controlling interests

equity

consideration received

investment retained

components previously recognised

appropriate.


incorporationReporting Currency

Butama Hydro Electricity Company Limited

group and are presented separately

arrangement requires unanimous

statements.

Group measures and recognises its

investment in an associate.

NOTES TO THE FINANCIAL STATEMENTS CONTD...

Acquisition-related costs are

terms, economic circumstances

resulting gain or loss is recognised in

Any contingent consideration to

Recognition and Measurement, is

Goodwill is initially measured at cost,

is measured at cost less any accumulated impairment losses.

testing, goodwill acquired in a

units.

retained.

2.1.3 Comparative Information

Policies2.2.1 Revenue Recognition

(a) Energy Supplied

to Ceylon Electricity Board and will

Minimum Guaranteed Energy Amount


at amortised cost and interest

(c) Dividends

(d) Others

2.2.2 Foreign Currencies

transaction.

reporting date.

income.

or loss respectively).

operations are translated into

statements are translated at

2.2.3 Taxationa) Current Tax

relating to items recognised directly in equity is recognised in equity and

Hemas Power PLC

at 5%, 10% and 15% respectively.

2012/13.

Giddawa Hydro Power (Private) LimitedPursuant to agreement entered into

is earlier.


Heladhanavi Limited

28%.

. Upper Agra Oya Hydro Power (Pvt) Limited

is earlier.

20%.

Agra Oya Hydro Power (Pvt) Ltd

Okanda Power Grid (Pvt) Limited

is earlier.

Ella Dendro Electric (Pvt) Limited

operations and consequently not

Butama Hydro Electricity Company Limited

operations and consequently not utilized.

utilized.

reporting date.



statements is recognised outside

equity.

c) Tax on dividend income

2.2.4 Property, Plant and EquipmentProperty, Plant and Equipment is

depreciation and/or accumulated

maintenance costs are recognised in

revalued. Any revaluation surplus is

income and accumulated in equity

reserve.

revaluation date is eliminated against

earnings.

Equipment.

Buildings on Leasehold Land are depreciated over the remaining lease period

initially recognised is derecognised

2.2.5 Leases

an arrangement is, or contains, a

arrangement.

Operating lease payments are

2.2.6 Borrowing Costs

2.2.7 Inventories

product to its present location and

actual cost

sell.

2.2.8 Financial Instruments- Initial

Measurementi) Financial Assets

Initial Recognition and Measurement

initial recognition.

impairment. Amortised cost is

discount or premium on acquisition


Held to Maturity Investments

investments are measured at

into account any discount or premium

income statement.

Investments

investments include equity and

cumulative gain or loss is recognised

loss.

maturity category is permitted only

accordingly.

Derecognition

it.

ii) Impairment of Financial Assets

estimated.

Financial Assets Carried at Amortised Cost



impairment.

estimated impairment loss increases

impairment loss is increased or

statement.

Investments

equity investments are not reversed

impairments are recognised directly in

carried at amortised cost. However,

investment previously recognised in

Future interest income continues

statement.

Initial Recognition and Measurement

at initial recognition.

Loans and Borrowings / Other

amortisation process.

into account any discount or premium

statement.

Derecognition

iv) Offsetting of Financial Instruments

v) Fair Value of Financial Instruments


transaction costs.

is determined using appropriate

Derivative Financial Instruments and Hedge Accounting

Measurement

is negative.

income.

Cash Flow Hedges

previously recognised in equity is

revoked, any cumulative gain or

2.2.9 Impairment of Non - Financial Assets

impaired and is written down to its

less costs to sell, recent market

value indicators.

operations, including impairment on inventories, are recognised in

previous revaluation.

impairment losses may no longer

recognised impairment loss is

increase.

Goodwill

2.2.10 Cash and Short term deposits

2.2.11 Provisions

(legal or constructive) as a result



money is material, provisions are

Employees’ Provident Fund and Employees’ Trust Fund

2.2.13 Operating Segment An operating segment is a component

2.3 First Time Adoption of SLFRS

Exemptions Applied

Optional Exemptions which the Group has opted to apply

April 2011.

impairment and recognition or

goodwill impairment was deemed necessary at 1 April 2011.

Leases

Jointly Controlled Entities

controlled entity is at its deemed


Hedge Accounting

Exceptions the Group has not applied retrospectivelyEstimates

in accounting policies).

De-recognition of Financial Assets

39 prospectively to transactions

statements.

Non-controlling interests

income to non controlling interest

transactions.



2.4 Notes to the reconciliation of Equity as at 01 April 2011 and 31 March 2012 and Total comprehensive Income for the year ended 31 March 2012.

FIRST-TIME ADOPTION OF SLFRS2.4.1 Group Reconciliation of Equity as at 01 April 2011 (date of transition to SLFRS)

Notes SLAS Remeasurements Transfers SLFRSBalance As at 1 April 2011

Rs. Rs. Rs.

AssetsNon Current AssetsProperty, Plant and Equipment 2,469,537,770 - - 2,469,537,770

Goodwill 126,752,566 - - 126,752,566 2,660,011,539 (3,178,762) - 2,656,832,777

Current Assets

1,952,030,806 (10,424,992) - 1,941,604,814Total Assets 4,612,042,345 (13,604,754) - 4,598,437,591

Equity

Capital Reserves D 62,745,091 (62,745,091) - -Revenue Reserves 299,002,411 - - 299,002,411Retained Earnings A,B,C,D 863,065,758 52,703,489 - 915,769,247Total Equity 2,899,696,217 (10,041,602) (135,000,000) 2,754,654,615

446,431,899 (3,563,152) 140,341,347 583,210,094

1,265,914,229 - (5,341,347) 1,260,572,8821,712,346,128 (3,563,152) 135,000,000 1,843,782,9764,612,042,345 (13,604,754) - 4,598,437,591



2.4.1 FIRST-TIME ADOPTION OF SLFRS (Contd…)Group Reconciliation of Equity As At 31 March 2012


Rs. Rs. Rs.

AssetsNon Current AssetsProperty, Plant and Equipment 2,548,808,006 - - 2,548,808,006

Goodwill 126,752,566 - - 126,752,566 2,710,068,072 (7,306,988) - 2,702,761,084

Current Assets

2,392,022,585 (1,355,070) - 2,390,667,516Total Assets 5,102,090,657 (8,662,058) - 5,093,428,600

Equity

Capital Reserves D 70,588,231 (70,588,231) - -

Revenue Reserves D 346,700,428 - 58,209,528 404,909,955Retained Earnings A,B,C,D,E 744,946,211 64,341,104 - 809,287,315Shareholders’ Funds 2,837,117,827 (6,247,127) (135,000,000) 2,695,870,699

Total Shareholders’ Funds and Minority Interest 2,839,618,673 (6,247,127) (135,000,000) 2,698,371,545

263,353,808 (2,414,931) 140,341,338 401,280,216

1,999,118,176 - (5,341,338) 1,993,776,8392,262,471,984 (2,414,931) 135,000,000 2,395,057,0555,102,090,657 (8,662,058) - 5,093,428,600




2.4.1 FIRST-TIME ADOPTION OF SLFRS (Contd…)Group Reconciliation of Total Comprehensive Income for the Year Ended 31st March 2012

Notes SLAS Remeasurements SLFRSBalance As at 1 April 2012

Rs. Rs. Rs.

Revenue 4,510,004,413 - 4,510,004,413

500,559,929 - 500,559,929

Finance Cost D,E (52,913,651) (25,446,435) (78,360,086)

272,724,502 (21,624,852) 251,099,650

270,329,355 (20,503,738) 249,825,616


Other Comprehensive Income for the Year, Net of Tax (58,209,528) - (58,209,528)

Total Comprehensive Income for the Year, Net of Tax 212,119,827 (20,503,738) 191,616,088



2.4.1 FIRST-TIME ADOPTION OF SLFRS (Contd…)Company Reconciliation of Equity As At 01 April 2011


Rs. Rs. Rs.

AssetsNon Current AssetsProperty, Plant and Equipment 17,567,986 - - 17,567,986

1,343,028,589 2,134,632 - 1,345,163,222

Current Assets

1,009,995,475 5,877,574 (19,389) 1,015,853,660Total Assets 2,353,024,064 8,012,206 (19,389) 2,361,016,882

Equity

Retained Earnings A,B,C,D,E 488,946,409 9,370,253 - 498,316,662

2,124,498 (1,358,046) 135,000,000 135,766,452

187,070,200 - (19,389) 187,050,811189,194,698 (1,358,046) 134,980,611 322,817,263

2,353,024,064 8,012,206 (19,389) 2,361,016,882




2.4.1 FIRST-TIME ADOPTION OF SLFRS (Contd…)Company Reconciliation of Equity As At 31st March 2012


Rs. Rs. Rs.

AssetsNon Current AssetsProperty, Plant and Equipment 24,067,195 - - 24,067,195

1,757,897,864 (1,729,209) - 1,756,168,656

Current Assets

476,690,421 (1,355,068) - 475,335,354Total Assets 2,234,588,285 (3,084,277) - 2,231,504,010

Equity

Retained Earnings A,B,C,D,E 307,743,203 (2,513,777) - 305,229,427

2,761,173 (570,500) 135,000,000 137,190,673

249,200,952 - - 249,200,953251,962,125 (570,500) 135,000,000 386,391,625

2,234,588,285 (3,084,277) - 2,231,504,010



2.4.1 FIRST-TIME ADOPTION OF SLFRS (Contd…)Company Reconciliation of Total Comprehensive Income for the Year Ended 31 March 2012

Notes SLAS Remeasurements SLFRSBalance As at 1 April 2012

Rs. Rs. Rs.

Revenue D,E 135,414,761 (14,918,068) 120,496,693

135,414,761 (14,918,068) 120,496,693

Finance Cost C (80,967) (15,894,046) (15,975,013)

85,240,502 (26,990,529) 58,249,973

84,303,298 (26,990,529) 57,312,769


Total Comprehensive Income for the Year, Net of Tax 84,303,298 (26,990,529) 57,312,769

2.4 Group reconciliation of equity as at 1 April 2011 ( Date of transition to SLFRS ) and 31 March 2012 and Total Comprehensive Income for the year ended 31 March 2012

A. Employee Share Ownership Scheme

6.2 Mn were recognized in retained

5.1 Mn respectively.

value amounting Rs. 6.7 Mn was

B. Deferred Tax Assets

recognised Rs. 1.98 Mn in retained

2011.

investment as at 1 April 2011. During

amounting to Rs. 0.5 Mn.

D.1 Short Term Investment

parent Company amounting to Rs. 135 Mn previously reported as equity

retained earnings amounting to Rs.



administration cost.

companies amounting to Rs. 91.8 Mn and Rs. 83.9 Mn previously

2012 respectively.

D.3 Capital ReservesPreviously recognised capital reserve

amounting to Rs. 62 Mn as at 01 April

D.4 Loans due from related party

measured at amortised cost. Loans given to related party at market

E. Postdated Cheques

statement as at 01 April 2012.

previously recognise under revenue

G. Statement of Cash Flow

Company

A. Employee Share Ownership Scheme

6.2 Mn were recognized in retained

5.1 Mn respectively.

value amounting Rs. 6.7 Mn was

2011.

investment as at 1 April 2011. During

amounting to Rs. 0.1 Mn.

C.1 Short term investment

135 Mn previously reported as equity

retained earnings amounting to Rs.

C.2.2 Preference share issue cost of

administration cost.

C.2.3 Dividend paid on preference

C.3 Investment in preference shares

investment in Giddawa amounting to Rs. 145 Mn recorded under investment

C.4 Loans due from related party

measured at amortised cost. Loans given to related party at market

C.6 Other Non Current Financial Asset

Financial Asset as at 01 April 2011


Rs 169.5 Mn.

D. Loans due from related party

loan is amounting Rs. 12.86 Mn is

E. Dividend Income

investment in Giddawa Hydro Power

Estimates and Assumptions

statements requires management

assumptions and estimates could

Judgments

company accounting policies,

Deferred Tax Assets

Estimates and Assumptions

gratuity is determined using actuarial

involves making assumptions

increases and retirement age. Due

reporting date.

2.6. Effect of Sri Lanka Accounting

Effective:

(i) SLFRS 9 – Financial Instruments:

(ii) SLFRS 13 – Fair value measurement

application was allowed. However

statements.



3 . PROPERTY, PLANT AND EQUIPMENT

3.1 GroupBalance Balance Balance

As at Additions Transfers As at Additions Revaluation Disposals As at01.04.2011 31.03.2012 31.03.2013

At cost/Valuation Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Civil Construction at

Civil Construction atPlant - Hydro 336,061,731 124,217,979 75,672,257 535,951,967 5,257,197 - - 541,209,164

Furniture and Fittings 4,704,390 109,138 - 4,813,528 7,289,120 - 763,528 11,339,120Power Plant -

Power Plant - Hydro 312,360,684 71,510,698 170,656,858 554,528,240 522,338 - - 555,050,578

Equipment 1,073,879 - - 1,073,879 - - - 1,073,879Computer Equipment 1,693,414 685,807 - 2,379,221 540,500 - 108,000 2,811,721

Generators 313,600 - - 313,600 - - - 313,600 3,502,989,135 237,663,833 246,329,115 3,986,982,083 24,477,293 12,256,245 5,831,487 4,017,884,134

Capital Work-in-ProgressPower Project

246,329,116 49,274,086 (246,329,115) 49,274,087 28,463,498 - - 77,737,585

Carrying Value 3,749,318,251 286,937,919 - 4,036,256,170 52,940,791 12,256,245 5,831,487 4,095,621,719

Balance Depreciation Balance Depreciation Disposals BalanceAs at Charge As at Charge As at

01.04.2011 for the Year 31.03.2012 for the Year 31.03.2013At Cost Rs. Rs. Rs. Rs. Rs. Rs.

Civil Construction at

Civil Construction atPlant -Hydro 10,251,577 6,483,731 16,735,308 8,986,310 - 25,721,618

Furniture andFittings 851,563 573,910 1,425,473 1,385,838 278,858 2,532,453Power Plant -

Power Plant -Hydro 15,912,241 11,184,218 27,096,459 16,646,893 - 43,743,351

Equipment 751,729 107,390 859,119 107,390 - 966,509Computer Equipment 986,234 386,548 1,372,782 576,483 50,995 1,898,270

Generators 59,925 40,325 100,250 40,325 - 140,575Total Depreciation 1,279,780,481 207,667,682 1,487,448,164 218,396,661 2,727,286 1,703,117,539


3. PROPERTY, PLANT AND EQUIPMENT (CONTD...) At 01 April

Net Book Values 2013 2012 2011 Rs. Rs. Rs.

Civil Construction at Plant -Hydro 515,487,546 519,216,659 325,810,154

Furniture and Fittings 8,806,667 3,388,055 3,852,828

Power Plant - Hydro 511,307,226 527,431,781 296,448,443

Computer Equipment 913,451 1,006,439 707,180

Generators 173,025 213,350 253,675 2,314,766,595 2,499,533,919 2,223,208,654

Capital Work-in-Progress

Total Carrying Value of Property, Plant and Equipment 2,392,504,180 2,548,808,006 2,469,537,770

Revaluation of Land

At 01 AprilNet Book Values 2013 2012 2011

Rs. Rs. Rs.

Cost 43,565,514 43,470,639 13,828,624

Net Carrying Amount 43,565,514 43,470,639 13,828,624

At 01 April 2013 2012 2011 Rs. Rs. Rs.

Civil Construction at Plant -Hydro 60 Years 60 Years 60 Years

Furniture and Fittings 3 - 8 Years 3 - 8 Years 3 - 8 Years

Power Plant - Hydro 331/3 Years 331/3 Years 331/3 Years

Computer Equipment 3 Years 3 Years 3 Years

Generators 8 Years 8 Years 8 Years



3. PROPERTY, PLANT AND EQUIPMENT (CONTD...)

3.6 CompanyBalance Additions/ Balance Additions/ Disposals/ Balance

As at Transfers As at Transfers Transfers As atGross Carrying 01.04.2011 31.03.2012 31.03.2013Amounts At cost Rs. Rs. Rs. Rs. Rs. Rs.

Computer Equipment 1,491,114 501,815 1,992,929 399,500 (108,000) 2,284,429

Furniture and Fittings 3,449,635 70,138 3,519,773 7,234,121 (763,528) 9,990,366Generators 313,600 - 313,600 - - 313,600Total Gross Carrying Value 27,948,673 11,433,783 39,382,456 17,151,615 (5,831,487) 50,702,584

Balance Balance BalanceAs At Charge for As at Charge for Disposals/ As at

Depreciation 01.04.2011 the year 31.03.2012 the year Transfers 31.03.2013At Cost Rs. Rs. Rs. Rs. Rs. Rs.

Computer Equipment 912,890 305,053 1,217,943 431,126 (50,995) 1,598,074

Furniture and Fittings 621,708 437,780 1,059,488 1,245,645 (278,858) 2,026,275Generators 58,800 39,200 98,000 39,200 - 137,200Total Depreciation 10,380,687 4,934,574 15,315,261 7,461,959 (2,727,286) 20,049,934

At 01 AprilNet Book Values 2013 2012 2011

Rs. Rs. Rs.

Computer Equipment 686,355 774,986 578,224

Furniture and Fittings 7,964,091 2,460,285 2,827,927Generators 176,400 215,600 254,800Total Carrying Value of Property, Plant and Equipment 30,652,650 24,067,195 17,567,986

4. INVESTMENTS IN SUBSIDIARIESHolding No. of Shares Company

At 01 April At 01 AprilOrdinary Voting Shares 2013 2012 2011 2013 2012 2011 2013 2012 2011

Rs. Rs. Rs.

Giddawa Hydro Power (Pvt)Limited 100% 100% 100% 1,630,999 1,630,999 1,630,999 163,099,900 163,099,900 163,099,900Okanda Power Grid (Pvt)Limited 100% 100% 100% 43,662,513 43,662,513 662,513 452,612,710 452,612,710 22,612,710

(Pvt) Limited 100% 100% 100% 9,926,706 9,926,706 9,926,706 208,884,087 208,884,087 208,884,087Butama Hydro ElectricityCompany Limited 99% 99% - 99 99 - 83,769 83,769 -Ella Dendro Electric (Pvt)Limited 75% 75% - 7,500,000 7,500,000 - 7,500,000 7,500,000 -

- - - 832,180,466 832,180,466 394,596,697


5. INVESTMENT IN JOINT VENTUREHolding No. of Shares Company

At 1 April At 1 April At 1 April 2013 2012 2011 2013 2012 2011 2013 2012 2011

Rs. Rs. Rs.

- - - 600,000,000 600,000,000 600,000,000

6. GOODWILLGroup

At 1 April 2013 2012 2011

Rs. Rs. Rs.

Balance at the End of the year 126,752,566 126,752,566 126,752,566

year.

7. OTHER FINANCIAL ASSETS Group Company

At 01 April At 01 April2013 2012 2011 2013 2012 2011

Rs. Rs. Rs. Rs. Rs. Rs.

Loan to Related Parties 69,000,000 80,000,000 - 201,390,406 210,824,612 129,439,114

112,450,757 110,873,578 14,823,547 389,446,355 386,269,852 289,185,577

Held to maturity

238,000,757 110,873,578 64,372,250 389,446,355 386,269,852 338,734,280

Total Non Current 164,832,501 24,096,382 58,559,425 316,672,907 299,920,994 332,998,539Total Current 73,168,256 86,777,196 5,812,825 72,773,448 86,348,858 5,735,741

price quotations in an active market.



7. OTHER FINANCIAL ASSETS (CONTD...)

7.1. Non CurrentGroup Company

At 01 April At 01 April2013 2012 2011 2013 2012 2011


164,832,501 24,096,382 58,559,425 316,672,907 299,920,994 332,998,539

7.2. Current Financial AssetsGroup Company

At 01 April At 01 April2013 2012 2011 2013 2012 2011


Total Current Financial Assets 73,168,256 86,777,196 5,812,825 72,773,448 86,348,858 5,735,741

7.3. Loans due from Related partiesGroup Company

At 01 April 01 April2013 2012 2011 2013 2012 2011

Relationship Rs. Rs. Rs. Rs. Rs. Rs.

- - - 132,390,406 130,824,612 129,439,114

7.4. Investment in Preference Shares - Non CurrentGroup Company

At 01 April At 01 April2013 2012 2011 2013 2012 2011


Giddawa Hydro Power

Total Market Value ofEquity Investment - - - 145,000,000 145,000,000 145,000,000

7.5. Loans due from Related PartiesGroup Company

At 01 April At 01 April2013 2012 2011 2013 2012 2011


HemasHoldings PLC Parent Company 69,000,000 80,000,000 - 69,000,000 80,000,000 -

69,000,000 80,000,000 - 69,000,000 80,000,000 -


7. OTHER FINANCIAL ASSETS (CONTD...)

7.6. Quoted Share InvestmentGroup Company

At 01 April At 01 AprilNo.of share 2013 2012 2011 2013 2012 2011


125,550,000 - - - - -

8 INVENTORIESGroup

Group Company At 01 April At 01 April

2013 2012 2011 2013 2012 2011Rs. Rs. Rs. Rs. Rs. Rs.

Fuel 50,494,821 67,825,852 38,316,374 - - -

61,938,390 95,326,852 57,618,480 - - -

9. TRADE AND OTHER RECEIVABLESGroup Company

At 01 April At 01 April 2013 2012 2011 2013 2012 2011


Advances, Deposits and Pre-payments 55,946,939 15,162,740 35,756,824 3,564,736 2,870,308 760,833

2,007,960,382 1,599,608,682 697,163,217 191,829,213 117,112,205 317,045,472

Total Current < 30 31-60 days 61-90 days 91-120 days > 120 daysRs. Rs. Rs. Rs. Rs. Rs. Rs.

2013 1,906,601,400 1,209,070,408 16,645,236 - - - 680,885,7562012 1,567,639,017 1,399,555,911 9,915,065 783,470 2,999,441 7,304,988 147,080,1412011 640,729,393 605,208,288 20,280,423 2,937,147 - - 12,303,535



9. TRADE AND OTHER RECEIVABLES (CONTD...)

Group CompanyAt 01 April At 01 April

Relationship 2013 2012 2011 2013 2012 2011Rs. Rs. Rs. Rs. Rs. Rs.

Hemas Holdings PLC Parent Company 9,853,914 9,773,120 9,602,000 9,853,068 9,772,274 9,602,000Giddawa Hydro

Butama Hydro Electricity

Hemas Corporate

(Pvt) Ltd Group Company 70,402 9,644 105,000 70,402 9,643 105,000

(Pvt) Ltd Group Company - - 225,823 - - 225,823 10,292,242 9,791,734 9,941,793 168,140,309 109,513,511 292,824,177

10 CASH AND CASH EQUIVALENTSGroup Company

At 01 April At 01 April Components of Cash and Cash Equivalents 2013 2012 2011 2013 2012 2011


383,345,612 598,315,087 1,174,287,535 48,235,562 262,942,885 687,896,465

11. STATED CAPITAL - GROUP/COMPANYAt 1

April2013 2012 2011

125,200,002 1,539,882,957 125,200,002 1,539,882,957 125,200,002 1,539,882,957

11.1


12. RESERVESGroup

At 01 April 2013 2012 2011 Rs. Rs. Rs.

Revenue Reserves (12.1) 374,060,043 404,909,955 299,002,411

12.1 Revenue ReservesGroup

At 01 April 2013 2012 2011 Rs. Rs. Rs.

374,060,043 404,909,955 299,002,411

13. INTEREST BEARING LOANS AND BORROWINGS2013 2012 2011

Amount Amount Total Amount Amount Total Amount Amount Total

Within 1 year After 1 year Within 1 year After 1 year Within 1 year After 1 yearGROUP Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Loan (13.1) - - - 94,117,642 - 94,117,642 - - -

Loans(13.2) 351,839,365 180,550,579 532,389,944 231,490,754 175,910,318 407,401,072 200,003,666 351,986,928 551,990,594Bank

1,364,524,626 180,550,579 1,545,075,205 1,596,337,151 175,910,318 1,772,247,469 1,037,006,165 351,986,928 1,388,993,093

COMPANYBank

1,817,091 - 1,817,091 56,485 - 56,485 1,203,626 - 1,203,626

13.1 Short -Term Rupee LoanAs at Loans Repayments As at Loans Repayments As at

Rs. Rs. Rs. Rs. Rs. Rs. Rs.

- 94,117,642 - 94,117,642 - 94,117,642 -

interest rates.



13. INTEREST BEARING LOANS AND BORROWINGS (CONTD...)

13.2 US$ Term Loans As at Loans Repayments Exchange As at Loans Repayments Exchange As at

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

551,990,594 - (205,530,433) 60,940,911 407,401,072 362,823,509 (235,149,857) (2,684,780) 532,389,944

Rate of Interest

Security

Terms of Repayments

14. FINANCIAL LIABILITIESGroup Company

At 01 April At 01 April

Amortised Cost Rs. Rs. Rs. Rs. Rs. Rs.

Amortised Cost 215,497,926 221,904,418 228,599,345 127,615,408 134,429,500 133,641,954

15 EMPLOYEE BENIFIT LIABILITYGroup Company

At 01 April At 01 April2013 2012 2011 2013 2012 2011


At 01 April 2013 2012 2011

Discount rate 11% 11% 10%

Retirement age 55 years 55 years 55 years


16. TRADE AND OTHER PAYABLESGroup Company

At 01 April At 01 April2013 2012 2011 2013 2012 2011


597,417,760 395,282,728 222,768,077 274,384,447 249,144,468 185,847,185 16.1 OTHER PAYABLES - RELATED PARTIES

Group Company At 01 April At 01 April

Relationship 2013 2012 2011 2013 2012 2011Rs. Rs. Rs. Rs. Rs. Rs.

Hemas Holdings PLC Parent Company 3,417,660 910,649 1,553,163 3,414,403 907,392 1,549,906Hemas Corporate

Ltd Group Company 22,900 5,450 - 22,900 5,450 -

Giddawa Hydro Power

Hemas Developments(Pvt) Ltd. Group Company 5,143 - - 5,143 - -

3,837,525 1,111,385 2,231,547 269,575,664 244,515,579 183,005,583

17. DEFFERED TAX ASSETGroup Company

At 01 April At 01 April2013 2012 2011 2013 2012 2011


Balance as at end of the year 4,265,879 3,104,130 1,983,016 - - -

DEFFERED TAX ASSETStatement Income

of Financial Position Statement 2013 2012 2011 2013 2012 2011

Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

1,161,749 1,121,114 1,983,016



18. REVENUEGroup Company

2013 2012 2013 2012 Rs. Rs. Rs. Rs.

5,618,973,609 4,510,004,413 90,689,820 120,496,693

19. OTHER INCOME AND GAINSGroup Company

2013 2012 2013 2012 Rs. Rs. Rs. Rs.

Dividend Receive Quoted 1,956,604 - - -

4,041,281 - 1,508,850 -

20. FINANCE COST / FINANCE INCOME

Group Company 2013 2012 2013 2012

Rs. Rs. Rs. Rs.

20.1 Finance Cost

137,195,502 78,360,086 8,757,180 15,975,013

20.2 Finance Income

16,870,726 28,792,663 3,719,599 10,147,187


21. PROFIT BEFORE TAXGroup Company

Stated After Charging all expenses including the following: 2013 2012 2013 2012 Rs. Rs. Rs. Rs.

Depreciation 218,396,661 207,667,682 7,461,959 4,934,574

22. INCOME TAX EXPENSEGroup Company

2013 2012 2013 2012 Rs. Rs. Rs. Rs.

(1,102,253) 1,274,034 - 937,204

Group Company 2013 2012 2013 2012

Rs. Rs. Rs. Rs.



23. FAIR VALUE

Carrying amount Fair value At 01 April At 01 April

Group 2013 2012 2011 2013 2012 2011Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Financial assets

Held to maturity - - 49,548,703 - - 49,548,703

Total 2,629,306,751 2,308,797,347 1,935,823,002 2,613,835,252 2,303,869,118 1,961,058,911

At 01 April At 01 AprilCompany 2013 2012 2011 2013 2012 2011

Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Financial assets

Held to maturity - - 49,548,703 - - 49,548,703

Total 352,120,724 490,500,330 1,069,237,103 336,649,225 485,572,101 1,094,473,009

Group

Bank Loans 532,389,944 501,518,714 551,990,594 532,389,943 501,518,714 551,990,594

Total 2,357,990,889 2,389,434,614 1,840,360,515 2,357,990,889 2,389,434,614 1,840,360,515

Company

Bank Loans - - - - - -

Total 403,816,946 383,630,452 320,692,764 403,816,946 383,630,452 320,692,764


Fair value hierarchy

or indirectly

data

Assets measured at fair value 31.03.2013 Level 1 Level 2 Level 3

24 . EARNINGS PER SHARE

Group 2013 2012

Rs. Rs.

25. DIVIDENDS PER SHARE- GROUP/COMPANYGroup

2013 2012Rs. Rs.



26. ASSETS PLEDGED

Nature of the Assets CarryingAmount

of the AssetsPledged

2013Rs.

CarryingAmount

of the AssetsPledged

2012Rs.

Included under

Registered undertaking to mortgage over 2,556,932,158 2,949,164,626 Property, Plant and Equipment

(Working Capital Loan 6,534,479,013 6,206,134,558 Property, Plant and

Equipment and

Bank)

2,556,932,158 2,949,164,626 Property, Plant and Equipment

685,206,000 690,390,000

27. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

28. COMMITMENTS AND CONTINGENCIES

28.1 POWER PURCHASE AGREEMENT (PPA) WITH CEYLON ELECTRICITY BOARD (CEB)

Shortfall Amount of liquidated damages for each kWh of shortfall

28.2 FUEL SUPPLY AGREEMENT WITH CEYLON PETROLEUM CORPORATION

28.3 OPERATIONS AND MAINTENANCE AGREEMENT WITH LAKDHANAVI LIMITED


28.4 FUEL TRANSPORT AGREEMENT WITH LTL PROJECTS ( PVT ) LTD

28.5 ELIGIBILITY TO APPLY FOR A GENERATION LICENSE

28.6 LITIGATION



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30. SEGMENTAL INFORMATION

Thermal Power Hydro Power Others Group 2013 2012 2013 2012 2013 2012 2013 2012

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Revenue

Total Revenue 5,388,639,579 4,325,320,654 221,535,006 145,934,554 8,799,024 38,749,205 5,618,973,609 4,510,004,413

Results

Finance Cost (119,236,665) (53,284,984) (9,201,657) (9,100,090) (8,757,180) (15,975,013) (137,195,502) (78,360,086)

theYear 193,696,028 186,202,677 147,026,830 88,097,659 (58,271,013) (24,474,721) 282,451,844 249,825,616

Equity Holders

Non-Current AssetsProperty Plant andEquipment 1,203,369,496 1,388,056,861 1,093,901,813 1,092,092,244 95,232,871 68,658,901 2,392,504,180 2,548,808,006

Segmental Non-Current Assets 1,203,369,496 1,388,056,861 1,223,717,692 1,095,196,374 1,846,695,839 1,800,760,365 4,273,783,027 4,284,013,599Eliminations/

Total Non-Current Assets 2,688,355,126 2,702,761,084

Current Assets 2,295,517,513 1,957,671,140 321,731,713 300,826,363 363,363,316 475,835,350 2,980,612,542 2,734,332,853

Total Assets 5,225,349,693 5,093,428,600

Eliminations/

401,290,876 401,280,216



30. SEGMENTAL INFORMATION CONTD...

Thermal Power Hydro Power Others Group 2013 2012 2013 2012 2013 2012 2013 2012

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Total Current1,944,619,739 2,017,208,868 103,304,291 84,962,156 361,585,709 284,332,650 1,964,080,269 1,993,776,839

2,365,371,145 2,395,057,055

Other Segmental Information

Property Plant and Equipment - - 15,766,677 230,912,430 37,174,115 56,025,487 52,940,791 286,937,919

Other Non-Cash Expenses

31. PROPORTIONATE INTEREST IN JOINT VENTURES

Group 2013 2012

Rs. Rs.

Non-Current Assets 1,203,369,496 1,388,056,861Current Assets 2,295,517,513 1,957,671,140

Revenue 5,388,639,579 4,325,320,654

32. GROUP COMPANIESProportion of

Ownership Voting Ownership Voting Principal Activities Interest as at Power as at Interest as at Power as at

31.03.2013 31.03.2013 31.03.2012 31.03.2012

Giddawa Hydro Power (Pvt) Ltd. 100% 100% 100% 100% 2.0 MW Mini Hydro Power Plant - operationalOkanda Power Grid (Pvt) Ltd. 100% 100% 100% 100% 2.4 MW Mini Hydro Power Plant - operational

Predevelopment stageElla Dendro Electric (Pvt) Ltd. 75% 75% - - 3.0 MW Biomass Power Plant -

Predevelopment stage


33. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group is exposed to market risk, credit risk and liquidity risk

Holdings PLC.

Market risk

Interest rate risk

interest rates.

Equity price risk

Credit risk

Financial instruments and cash deposits

credit risk management.



Liquidity risk

As at 31st March 2013 On demand Less than 3 months 3 to 12 months 1 to 5 years > 5 years TotalRs. Rs. Rs. Rs. Rs. Rs.

1,012,685,261 97,199,338 852,057,787 308,165,986 87,882,518 2,357,990,891


1,270,728,755 540,222,567 180,668,557 310,339,818 87,474,918 2,389,434,615

As at 01 April 2011 On demand Less than 3 months 3 to 12 months 1 to 5 years > 5 years TotalRs. Rs. Rs. Rs. Rs. Rs.

837,002,499 294,307,197 136,307,686 485,628,882 87,114,251 1,840,360,515

Capital management


33.1 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - COMPANY


1,817,091 4,808,783 269,575,664 127,615,408 - 403,816,946


56,485 4,628,889 244,515,579 134,429,500 - 383,630,453

As at 01 April 2011 On demand Less than 3 months 3 to 12 months 1 to 5 years > 5 years TotalRs. Rs. Rs. Rs. Rs. Rs.

1,203,626 2,841,602 183,005,583 133,641,954 - 320,692,764



Year Ended 31st March 2013 2012 2011 2010 2009Rs. Rs. Rs. Rs. Rs.

A) Summary of the Operations

Revenue 5,618,973,609 4,510,004,413 3,411,904,974 2,867,404,787 4,870,451,204

B) Summary of Financial Position

Capital and Reserves

Capital Reserve - - 62,745,091 47,058,818 31,372,545Revenue Reserves 374,060,043 404,909,955 299,002,411 236,683,773 242,708,481

Retained Earnings 939,656,446 809,287,315 863,065,758 660,423,081 487,295,051Shareholders’ Funds 2,857,477,702 2,695,870,699 2,899,696,217 2,484,048,629 1,700,376,097

Total Shareholders’ Funds and Minority Interest 2,859,978,548 2,698,371,545 2,899,696,217 2,484,048,629 1,700,376,097

2,365,371,145 2,395,057,055 1,712,346,128 1,430,857,585 2,024,139,841

5,225,349,693 5,093,428,600 4,612,042,345 3,914,906,213 3,724,515,938

AssetsProperty Plant and Equipment 2,392,504,180 2,548,808,006 2,469,537,770 2,430,236,954 2,352,780,434

Current Assets 2,536,994,567 2,390,667,516 1,952,030,806 1,357,916,692 1,351,330,485

Total Assets 5,225,349,693 5,093,428,600 4,612,042,345 3,914,906,213 3,724,515,937

Key Indicators

Dividends Payout (%) 68.03% 60.67% 69.78% 41.82% 35.42%

Return on Equity (%) 9.88% 9.27% 14.23% 9.39% 13.10%

FIVE YEAR SUMMARY


NOTICE IS HEREBY GIVENMonday, the 8th day of July 2013 at 3.30 PM

AGENDA

remuneration.

7. SPECIAL BUSINESS

SPECIAL RESOLUTION

RESOLVED

HEMAS POWER PLC

Hemas Corporate Services (Private) LimitedSecretaries

Note:

NOTICE OF MEETING


FORM OF PROXY

For Against

Note:


FORM OF PROXY CONTD...

INSTRUCTIONS AS TO COMPLETION OF FORM OF PROXY

Legal FormQuoted Public Company with limited liability listed on the Colombo Stock Exchange on 8th October 2009

Date of Incorporation11th June 2003

Company Registration numberPV 415 PB PQ

Accounting year end31st March

Registered Office“Hemas House,”No. 75, Braybrooke Place,Colombo 2.

Websitewww.hemas.com

AuditorsErnst & YoungChartered AccountantsNo. 201, De Saram Place,Colombo 10.

DirectorsImtiaz Esufally (Chairman)Kishantha Nanayakkara (Managing Director)Husein EsufallyMalinga ArsakularatneSanjiva SenanayakeProfessor Malik RanasingheRiad Ameen

SecretariesHemas Corporate Services (Pvt) Ltd“Hemas House”No. 75, Braybrooke Place,Colombo 2Telephone: 4 731731 (hunting)Facsimile: 4 731777

CORPORATE INFORMATION

RegistrarsSSP Corporate Services (Pvt) LtdNo. 101, Inner Flower RoadColombo 3Telephone 2573894Facsimile 2573609

BankersCommercial Bank of Ceylon PLCHong Kong & Shanghai Banking Corp. LtdStandard Chartered BankHatton National Bank PLC

Produced by Copyline (Pvt) Ltd Printed by Printel (Pvt) Ltd



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as Power PLC | A

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