melstacorp plc - colombo stock exchange · 2017-11-15 · melstacorp plc statements of financial...

MELSTACORP PLC

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED

30th SEPTEMBER 2017

MELSTACORP PLC

STATEMENTS OF COMPREHENSIVE INCOME

Rs. '000s Unaudited Unaudited Variance Unaudited Unaudited Variance

Restated

For the 6 Months ended 30th September, 2017 2016 % 2017 2016 %

Rs. '000 Rs. '000 Rs. '000 Rs. '000

Gross Revenue 53,205,471 54,328,350 (2.07) 101,255 96,140 5.32

Net Revenue 21,100,143 19,577,497 7.78 101,255 96,140 5.32

Cost of Sales, Net Benefits Paid and Interest Expenses (15,246,406) (11,615,425) 31.26 (1,295) (2,396) (45.96)

Gross Profit 5,853,737 7,962,072 (26.48) 99,960 93,744 6.63

Other Operating Income 783,076 408,486 91.70 863,718 2,406,181 (64.10)

Distribution Expenses (830,332) (854,985) (2.88) - -

Administrative Expenses (2,085,074) (1,848,357) 12.81 (48,687) (59,233) (17.80)

Other Operating Expenses (105,773) (28,827) 266.92 (9,806) - -

Profit from Operations 3,615,634 5,638,389 (35.87) 905,185 2,440,692 (62.91)

Finance Income 715,903 565,412 26.62 462,192 632,328 (26.91)

Finance Cost (957,027) (546,924) 74.98 (10,311) (81,805) (87.40)

Net Finance Income/(cost) (241,124) 18,488 451,881 550,523 (17.92)

Share of Profit of Equity-Accounted Investees (Net of

Tax)882,997 395,903 123.03 - - -

Gain on Bargaining Purchases 39,403 - 100.00 - - -

Profit before Tax 4,296,910 6,052,780 (29.01) 1,357,066 2,991,215 (54.63)

Income Tax (1,382,455) (2,182,202) (36.65) (118,577) (111,902) 5.97

Profit for the Year 2,914,455 3,870,578 (24.70) 1,238,489 2,879,313 (56.99)

Other Comprehensive Income

Net Change in Fair Value of Available for Sale

Financial Assets2,009,832 1,841,147 9.16 1,854,477 1,593,052 16.41

Reversal of AFS reserve on disposal of AFS

Investments9,806 - 100.00 9,806 - 100.00

Share of Other Comprehensive Income of Equity-

Accounted Investees (Net of Tax)(88,831) 58,052 (253.02) - - -

Total Other Comprehensive Income 1,930,807 1,899,199 1.66 1,864,283 1,593,052 17.03

Total Comprehensive Income for the Year 4,845,262 5,769,777 (16.02) 3,102,771 4,472,365 (30.62)

Profit Attributable to:

Equity Holders of the Parent 2,926,268 4,109,969 (28.80) 1,238,489 2,879,313 (56.99)

Non Controlling Interest (11,813) (239,391) (95.07) - - -

Profit for the Year 2,914,455 3,870,578 1,238,489 2,879,313 (56.99)

Total Comprehensive Income Attributable to:

Equity Holders of the Parent 4,857,097 6,009,128 (19.17) 3,102,771 4,472,365 (30.62)

Non Controlling Interest (11,835) (239,351) (95.06) - - -

Total Comprehensive Income for the Year 4,845,262 5,769,777 3,102,771 4,472,365

Earnings per Share (Rs.)

Basic Earnings per Share 2.51 3.53 (28.80) 1.06 2.47 (56.99)

GROUP COMPANY

MELSTACORP PLC

STATEMENTS OF COMPREHENSIVE INCOME

Unaudited

Rs. '000s Restated

For the quarter ended 30th September, 2017 2016 % 2017 2016 %

Rs. '000 Rs. '000 Rs. '000 Rs. '000

Gross Revenue 27,170,147 28,446,311 (4.49) 50,573 48,132 5.07

Net Revenue 10,818,114 10,232,707 5.72 50,573 48,132 5.07

Cost of Sales, Net Benefits Paid and Interest Expenses (7,606,251) (6,109,287) 24.50 (572) (1,575) (63.70)

Gross Profit 3,211,863 4,123,420 (22.11) 50,001 46,557 7.40

Other Operating Income 503,771 118,343 325.69 726,724 2,229,595 (67.41)

Distribution Expenses (384,870) (440,350) (12.60) - - -

Administrative Expenses (1,186,909) (983,366) 20.70 (25,076) (24,860) 0.87

Other Operating Expenses (35,371) (10,798) 227.57 (9,806) - -

Profit from Operations 2,108,483 2,807,249 (24.89) 741,844 2,251,292 (67.05)

Finance Income 326,737 463,798 (29.55) 176,327 604,122 (70.81)

Finance Cost (528,208) (309,951) 70.42 (8,927) (79,520) (88.77)

Net Finance Income/(cost) (201,471) 153,847 (230.96) 167,399 524,602 (68.09)

Share of Profit of Equity-Accounted Investees (Net

of Tax)722,077 245,972 193.56 -

- -

Gain on Bargaining Purchases 39,403 - 100.00 - -

-

Profit before Taxation 2,668,493 3,207,068 (16.79) 909,243 2,775,894 (67.25)

Taxation (789,788) (1,139,807) (30.71) (98,054) (111,248) (11.86)

Profit for the period 1,878,706 2,067,261 (9.12) 811,189 2,664,646 (69.56)


Net Change in Fair Value of Available for Sale

Financial Assets(1,000,817) 1,761,697 (156.81) (958,790) 1,641,483 (158.41)

Reversal of AFS reserve on disposal of AFS

Investments(20,442) - 100.00 (20,442) - 100.00

Share of Other Comprehensive Income of Equity-

Accounted Investees (Net of Tax)(124,437) 16,050 (875.31) - - -

Total Other Comprehensive Income (1,145,696) 1,777,747 (164.45) (979,232) 1,641,483 (159.66)

Total Comprehensive Income for the Period 733,009 3,845,008 (80.94) (168,044) 4,306,129 (103.90)

Profit Attributable to:

Equity Holders of the Parent 1,785,769 2,186,974 (18.35) 811,189 2,664,646 (69.56)

Non Controlling Interest 92,937 (119,713) (177.63) - - -

Profit for the Period 1,878,706 2,067,261 (9.12) 811,189 2,664,646 (69.56)

Total Comprehensive Income Attributable to:

Equity Holders of the Parent 640,065 3,964,634 (83.86) (168,044) 4,306,129 (103.90)

Non Controlling Interest 92,945 (119,626) (177.70) - - -

Total Comprehensive Income for the Period 733,009 3,845,008 (80.94) (168,044) 4,306,129 (103.90)

Earnings per Share (Rs.)

Basic Earnings per Share 1.53 1.88 (18.35) 0.70 2.29 (69.56)

GROUP COMPANY

Unaudited Variance Unaudited Unaudited Variance

MELSTACORP PLC

STATEMENTS OF FINANCIAL POSITION (217,288) 780,086

Unaudited Unaudited Audited Unaudited Unaudited Audited

Restated

As at, 30-Sep-17 30-Sep-2016 31-Mar-2017 30-Sep-17 30-Sep-2016 31-Mar-2017

Rs. '000s Rs. '000s Rs. '000s Rs. '000s Rs. '000s Rs. '000s

Non-Current Assets

Property, Plant and Equipment 23,752,680 22,522,661 22,869,435 5,321 4,737 5,637

Investment Property 1,431,040 1,213,752 1,431,040 2,843,652 2,787,907 2,843,652

Goodwill on Acquisition and Other Intangible Assets 2,180,816 2,722,843 2,327,053 345 304 482

Biological Assets 8,085,041 4,065,157 4,139,750 - - -

Investments in Subsidiaries - - - 44,675,432 10,863,552 43,531,339

Investment in Equity Accounted Investees 28,250,042 26,636,995 28,118,731 20,591,167 20,521,982 20,829,353

Other Non Current Financial Investments 21,940,478 19,416,585 19,733,466 17,424,061 14,722,582 14,390,082

Deferred Tax Asset 852,702 607,967 859,604 1,208 19,889 1,208

Finance Lease, Hire Purchases and Operating Lease Receivables 1,343,940 1,960,310 1,623,769 - - -

Advances and Other Loans 1,029,453 384,639 526,540 - - -

88,866,191 79,530,909 81,629,388 85,541,186 48,920,953 81,601,753

Currents Assets

Inventories 8,310,627 5,449,756 7,054,434 1,275 970 918

Produce on Bearer Biological Assets 9,764 - 5,246 - - -

Trade and Other Receivables 11,312,970 10,311,123 11,273,965 598,808 1,401,642 108,392

Finance Lease, Hire Purchases and Operating Lease Receivables 2,716,105 844,106 1,528,574 - - -

Advances and Other Loans 181,835 1,544,570 1,400,196 - - -

Amounts due from Related Companies 48,142 129,200 130,087 2,412,004 1,653,796 2,532,176

Other Current Financial Investments 7,844,836 2,315,808 6,804,148 5,399,834 26,347,046 4,934,910

Cash at Bank and Cash in Hand 2,144,405 3,093,637 2,092,774 6,538 856,998 423,469

32,568,684 23,688,200 30,289,424 8,418,460 30,260,452 7,999,865

Total Assets 121,434,875 103,219,109 111,918,812 93,959,645 79,181,405 89,601,618

EQUITY AND LIABILITIES

Equity

Stated Capital 89,100,000 75,000,000 89,100,000 89,100,000 75,000,000 89,100,000

Reserve 13,772,782 13,143,872 12,430,172 (732,914) (1,121,366) (2,597,197)

Retained Earnings (29,686,097) (19,944,118) (33,449,856) 3,730,411 5,062,113 2,491,925

Equity Attributable to Equity Holders of the parent 73,186,685 68,199,754 68,080,316 92,097,498 78,940,747 88,994,728

Non Controlling Interest 4,024,603 3,289,976 3,216,565 - - -

Total Equity 77,211,288 71,489,730 71,296,881 92,097,498 78,940,747 88,994,728

Non-Current Liabilities

Interest Bearing Loans and Borrowings 3,658,417 4,672,420 3,436,759 - - -

Deferred Tax Liabilities 2,513,611 2,011,206 2,511,310 103,758 85,175 103,757

Employee Benefits 1,711,920 1,033,453 906,936 5,100 3,574 4,316

Other Deferred Liabilities 380,489 244,888 236,899 - - -

8,264,437 7,961,967 7,091,904 108,857 88,749 108,073

Current Liabilities

Trade and Other Payables 16,589,537 12,380,364 14,322,948 4,850 2,657 3,357

Deposit Liabilities 3,107,751 2,650,236 1,541,694 - - -

Other Deferred Liabilities 79,557 74,322 82,653 - - -

Amount due to Related Companies 1,161,965 303,409 332,603 299,946 41,953 44,853

Income Tax Payable 561,970 1,493,941 1,484,690 112,903 106,083 341,073

Interest Bearing Loans and Borrowings 2,204,456 2,561,829 4,855,389 - - -

Bank Overdrafts and Other Short Term Borrowings 12,253,915 4,303,311 10,910,049 1,335,591 1,214 109,534

35,959,150 23,767,412 33,530,026 1,753,291 151,907 498,817

Total Equity and Liabilities 121,434,875 103,219,109 111,918,812 93,959,646 79,181,405 89,601,618

Net Assets per Share (Rs.) 62.80 58.52 58.42 79.03 67.74 76.36

The above unaudited figures are provisional and subject to audit.

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

sgd/-

D.M.Welikandage

Manager-Finance

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

Signed for and on behalf of the board

sgd/- sgd/-

A.L.Gooneratne A.N.Balasuriya

Managing Director Director

10th November 2017 in Colombo.

COMPANYGROUP

GROUP

Stated Revaluation Capital Reserve General Exchange

fluctuation

Timber Available for

sale Investment

Retained

Earnings/

(Losses)

capital reserve reserve fund reserve reserve reserve reserve fund

Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

Restated Balance as at 1st April 2016 (Restated) 48,320,750 7,008,181 12,137 9,335 403,968 592,644 882,829 2,269,960 - - 3,705,758 63,205,562 3,529,347 66,734,909

Total Comprehensive Income for the Period

Profit For The Year - - - - - - - - - 4,109,969 4,109,969 (239,391) 3,870,578


Net Change in Fair Value of Available for Sale Financial Assets - - - - - - - 1,841,108 - - 1,841,108 39 1,841,147

Defined Benefit Plan Actuarial Gains (Losses) (Net Of Tax) - - - - - - - - - - -

Share of Other Comprehensive Income of Equity-Accounted

Investees (Net of Tax) - - - - - 84,971 - (26,893) - (26) 58,052 - 58,052

Total Other Comprehensive Income for the period - - - - - 84,971 - 1,814,215 - - (26) 1,899,160 39 1,899,199

Total Comprehensive Income for the period - - - - - 84,971 - 1,814,215 - - 4,109,943 6,009,129 (239,352) 5,769,777

Transactions with owners directly recorded in the Equity

Dividends paid to Non Controlling Interest - - - - - - - - - - - (19) (19)

Share of Net Assets of Equity-Accounted Investees (Net of Tax) - - - - - - - - - - - - -

Dividends Paid During the Period - - - - - - - - - (1,005,000) (1,005,000) - (1,005,000)

New Share Issue 26,679,250 - - - - - - - - (26,679,250) - - -

Transferred From/To Retained Earnings - - - - - - 65,691 - - (65,691) - - -

Effect Of acquisition of Non Controlling Interest of Equity

Accounted Investees - - - - - (59) - - - (6,372) (6,431) - (6,431)

Other changes in net assets of equity accounted investees - - - - - - - - - - (3,506) (3,506) - (3,506)

Total Contributions by and Distributions to Owners 26,679,250 - - - - (59) 65,691 - - - (27,759,819) (1,014,937) (19) (1,014,956)

Balance as at 30 September 2016 75,000,000 7,008,181 12,137 9,335 403,968 677,556 948,520 4,084,175 - - (19,944,118) 68,199,754 3,289,976 71,489,730

Cash Flow

Hedge Reserve Total

MELSTACORP PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to equity holders of parent

Non

controlling

interest

Total equity

GROUP

Stated Revaluation Capital Reserve General Exchange

fluctuation

Timber Available for

sale Investment

Retained

Earnings/

(Losses)

capital reserve reserve fund reserve reserve reserve reserve fund

Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

Restated Balance as at 1st April 2017 89,100,000 7,256,767 12,137 14,499 710,214 944,140 920,163 2,572,252 - - (33,449,856) 68,080,316 3,216,565 71,296,881

Total Comprehensive Income for the Period

Profit For The Year - - - - - - - - - - 2,926,268 2,926,268 (11,813) 2,914,455


Net Change in Fair Value of Available for Sale Financial Assets - - - - - - - 1,991,631 - - - 1,991,631 (22) 1,991,609

Reversal of AFS reserve on disposal of AFS Investments - - - - - - - 28,029 - - - 28,029 - 28,029

Share of Other Comprehensive Income of Equity-Accounted

Investees (Net of Tax) - - - - - 60,501 - 978 - (150,310) - (88,831) - (88,831)

Total Other Comprehensive Income for the period - - - - - 60,501 - 2,020,638 - (150,310) 2,926,268 4,857,097 (11,835) 4,845,262

Total Comprehensive Income for the period

Transactions with owners directly recorded in the Equity

Dividends paid to Non Controlling Interest - - - - - - - - - - - (11) (11)

Transferred From/To Retained Earnings - (19,962) - - 1,320 - 27,449 - - - (8,807) - - -

Effects of Changes In percentage Holding In Subsidiaries - - - - - - - - - - 249,271 249,271 (366,855) (117,584)

Acquisition of control over equity accounted investees - (335,758) - - - - (261,266) - - - 597,024 - 1,186,739 1,186,739

Total Contributions by and Distributions to Owners - (355,720) - - 1,320 - (233,817) - - - 837,488 249,271 819,873 1,069,144

Balance as at 30 September 2017 89,100,000 6,901,047 12,137 14,499 711,534 1,004,641 686,346 4,592,890 - (150,310) (29,686,097) 73,186,685 4,024,603 77,211,287

Cash Flow

Hedge Reserve Total

MELSTACORP PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to equity holders of parent

Non

controlling

interest

Total equity

MELSTACORP PLC

STATEMENTS OF CHANGES IN EQUITY

COMPANYStated Revaluation

Available for

sale Retained

capital reserve reserve earnings/(losses)

Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

Balance as at 1st April 2016 (Audited) 48,320,750 111,691 (2,826,109) 2,182,800 47,789,132

Net Profit for the Period - - - 2,879,313 2,879,313

Other Comprehensive Income -

Net change in fair value of available for sale financial assets - - 1,593,052 - 1,593,052

Revaluation of Property,Plant and Equipment - - - - -

Actuarial Gain/(Losses) on retirement benefit obligations - - - - -

Income tax on other comprehensive income - - - - -

Total Other Comprehensive Income for the period - - 1,593,052 - 1,593,052

Total Comprehensive Income for the period - - 1,593,052 2,879,313 4,472,365

Transactions with Owners of the Company directly recognized into

Equity

Issue of shares 26,679,250 - - - 26,679,250

26,679,250 - - - 26,679,250

Balance as at 30 September 2016 75,000,000 111,691 (1,233,057) 5,062,113 78,940,747

Balance as at 1 April 2017 89,100,000 111,691 (2,708,886) 2,491,923 88,994,726

Net Profit for the Period - - - 1,238,489 1,238,489

Other Comprehensive Income -

Net change in fair value of available for sale financial assets - - 1,854,477 - 1,854,477

Reversal of AFS reserve on disposal of AFS Investments - - 9,806 - 9,806

Income tax on other comprehensive income - - - -

Total Other Comprehensive Income for the period - - 1,864,283 - 1,864,283

Total Comprehensive Income for the period - - 1,864,283 1,238,489 3,102,771

Transactions with Owners of the Company directly recognized into

Equity

Issue of Shares - - - - -

Share buy back - - - - -

Dividend paid - - - - -

- - - - -

Balance as at 30 September 2017 89,100,000 111,691 (844,603) 3,730,411 92,097,498

Total

MELSTACORP PLC

STATEMENTS OF CASH FLOWS

For the 6 Months ended 30th September, 2017 2016 2017 2016

Rs. '000 Rs. '000 Rs. '000 Rs. '000

CASH FLOW FROM OPERATING ACTIVITIES

Profit before Taxation 4,296,910 6,052,780 1,357,066 2,991,215

Adjustment for

Depreciation and amortization of PPE,Biological assets and intangible assets 1,210,898 1,079,161 720 585

Provision for gratuity 47,941 52,429 784 517

Interest Expenses 953,070 529,588 10,311 81,805

Interest income (637,785) (387,356) (415,482) (469,184)

Dividend income (149,324) (205,702) (801,160) (483,141)

(Gain) / loss on Disposal of Property, Plant and Equipment (15,268) (20,400) - (1)

Provision/ (Reversal of provisions) for Inventories (24,278) (46,760) - -

Provision/(Reversal) for Bad & Doubtful Debts and impairment 84,757 56,097 - -

Gain on bargaining purchases (39,403) - - -

Share of profit of equity-accounted investees (net of tax) (882,997) (395,903) - -

Gain on Fair value of investment in equity accounted investees (119,365) - - -

(Gain)/ Loss on disposal of other financial investments (147,895) (3,357) (52,747) (1,922,500)

Deferred income recognized (13,724) (23,977) - -

(Gain) / loss on Change in Fair Value of Biological Assets (22,987) (36,000) - -

(Gain)/loss on change in fair value of financial assets at fair value through profit or loss(70,065) (177,618) (46,710) (163,143)

Operating Profit before Working Capital Changes 4,470,485 6,472,982 52,782 36,153

(Increase)/Decrease in Inventories (1,019,377) 611,164 (356) -

(Increase)/Decrease in Receivables (5,266) 1,024,140 62,269 (171,121)

(Increase)/Decrease in Related Party Receivable and Payable 297,343 15,312 (68,427) -

Increase/(Decrease) in Payables 3,390,242 1,797,690 1,493 (63,214)

Cash Generated from Operations 7,133,426 9,921,288 47,760 (198,182)

Dividend Received 241,023 473,750 248,475 483,141

Interest Paid (953,070) (536,924) (10,311) (81,805)

Income Tax and Super Gain Tax Paid (2,295,972) (1,784,812) (346,747) (5,818)

Retiring Gratuity Paid (44,733) (37,274) - 1

Net Cash Flow from Operating Activities 4,080,675 8,036,028 (60,823) 197,337

CASH FLOW FROM INVESTING ACTIVITIES

Acquisition of equity accounted investees (484,528) (167,083) (497,906) (167,082)

Investment in Subsidiaries (408,001) - (408,001) -

Loans disbursed to Subsidiaries - - (1,324,985) -

Cash received from Repurchase of Shares by Subsidiaries - - - 2,500,001

Net proceed from disposal/(Acquisition)of Other Investments (1,006,303) (1,123,221) (1,264,428) (491,085)

Acquisition of Property, Plant & Equipment and intangible assets (941,718) (1,588,606) (268) (230)

Additions of Mature and Immature Plantations (119,634) (109,071) - -

Proceeds on Disposal of Property, Plant & Equipment 46,977 22,170 - 66

Interest Received 637,785 387,356 1,126,544 32,274

Net Cash Flow Used in Investing Activities (2,275,422) (2,578,455) (2,369,044) 1,873,944

CASH FLOW FROM FINANCING ACTIVITIES

Short Term Borrowings from Subsidiaries - - 1,087,207 894,627

Repayment of short term borrowings to subsidiaries - - (300,333) (2,131,400)

Loans disbursed to Subsidiaries - - - -

Laon and borrowings Received 1,048,532 2,872,370 - -

Issue of shares - - - -

Repayments of loan and borrowings (3,728,289) (1,087,910) - -

Receipt of deferred Income 5,338 11,801 - -

Dividends paid - (982,867) - -

Dividend paid by subsidiaries to minority share holders (11) (19) - -

Net Cash Flow from Financing Activities (2,674,431) 813,375 786,875 (1,236,773)

Net Increase/Decrease in Cash & Cash Equivalent during the year (869,178) 6,270,948 (1,642,992) 834,508

Cash & Cash Equivalents

At the beginning of the year (8,817,275) (7,489,621) 313,935 21,276

Net Cash and Cash Equivalants of Acquisition of Subsidiaries (423,058) - - -

Net movement during the year (869,178) 6,279,948 (1,642,992) 834,508

At the end of the year (Note A) (10,109,511) (1,209,673) (1,329,057) 855,784

Note A-Cash and Equivalents are as follows

Short Term Deposits 1,150,022 1,729,276 4,567 354,154

Cash in Transit 96,812 579,107 - 495,000

Cash in Hand & Bank 897,571 785,255 1,971 7,844

Bank overdrafts and other short term borrowings (12,253,915) (4,303,311) (1,335,591) (1,214)

(10,109,511) (1,209,673) (1,329,057) 855,784

GROUP COMPANY

MELSTACORP PLC

NOTES TO THE FINANCIAL STATEMENTS

SEGMENTAL INFORMATION

For the 6 Months ended 30th September, 2017 2016

Rs.'000 Rs.'000

(a) Turnover

Beverages 47,215,623 49,368,093

Plantations 1,752,419 1,283,661

Telecommunications 1,461,636 1,553,568

Financial services 1,778,880 1,339,146

Diversified 996,913 783,882

Gross Turnover 53,205,471 54,328,350

Turnover based Taxes (32,105,328) (34,750,853)

Net Turnover 21,100,143 19,577,497

(b) Industry Segment Profit

Beverages 2,934,369 5,914,727

Plantations 306,334 (67,886)

Telecommunications (777,307) (553,644)

Financial services 245,143 154,050

Diversified 665,971 209,630

3,374,510 5,656,877

Share of Associate Company Profits 882,997 395,903

Gain on Bargaining Purchases 39,403 6,052,780

Net Profit Before Tax 4,296,910 6,052,780

Taxation (1,382,455) (2,182,202)

Net Profit After Tax 2,914,455 3,870,578

GROUP

MELSTACORP PLC


1 The interim Financial Statements have been prepared in accordance with the Accounting Policies

set out in the most recent Annual Report and are in compliance with Sri Lanka Accounting Standard

LKAS 34 - Interim Financial Reporting.

2 Where appropriate, the previous year's presentation has been amended to conform to current

year classifications.

3 Amount due from the Secretary to the Treasury o/a of SLIC Shares

As per the Judgment delivered by the Supreme Court of the Democratic Socialist Republic of Sri Lanka

on June 2009 it was declared and directed that the shares of SLIC purported to have been sold to

Distilleries Consortium on 11th April 2003 along with any shares purchased from employees as per

SSPA shall be deemed to have been held for and on behalf of the Secretary to the Treasury.

As directed by the said judgment, the Secretary to the Treasury returned the money that was paid by

Group Subsidiary Milford Holdings (Pvt) Limited (MHL) to purchase shares from SLIC.

In respect of Profits Earned

Further, MHL was entitled to retain the profits of SLIC derived by MHL from 11 April 2003 to

04st June 2009 in lieu of the interest for the aforesaid investment. The Secretary to the Treasury was

directed to cause profits of SLIC to be computed and audited from the date of the last audited

Balance Sheet of SLIC to 04th June 2009 to enable MHL to obtain such profits.

However, Secretary to the Treasury has not yet determined the value of profits to be retained by the MHL;

hence no adjustments were made to the Financial Statements in this regards.

4 Impact of Revival of Underperforming Enterprises and Underutilized Assets Act –

Pelwatte Sugar Industries PLC Group (PSIP)

Consequent to the enactment and passage of the above Act of Parliament on 9 November 2011,

the state officials are occupying the land leased to PSIP and running the operations of PSIP and its related

companies. Subsequently a Compensation Tribunal was formed as required by the Act. Without

assuming any liability or without any prejudice to, or impact on its rights, PSIP has submitted a claim to the

Compensation Tribunal.

On 13 March 2013 Commercial High Court of Western Province (Colombo Civil) issued a winding-up

order of Pelwatte Sugar Industries PLC. The Court has appointed P.E.A. Jayewickreme and G.J. David,

as the Liquidators.

Since our group is deprived of participating in controlling the financial, operating policies and other

relevant activities, the financial statements of PSIP have been deconsolidated from the group financial

statements of DCSL PLC in year 2013/14. The investment made in PSIP is classified as a fully impaired

long term investment in the group.

MELSTACORP PLC


5 Non Financial Information

30-Sep-17 30-Sep-2016 31-Mar-2017

Net Assets Value per Share - Group (Rs) 62.80 49.43 58.52

- Company (Rs) 79.03 67.74 76.36

Market Price per Share - Last Traded Rs) 58.60 N/A 59.20

- Highest (Rs) 69.50 N/A 69.50

- Lowest (Rs) 58.00 N/A 54.90

6 1,165,398,072 ordinary shares represent the Stated Capital , 1,000 shares of which are Non-Voting.

7 Earnings per Share

The Number of shares (1,165,398,072) held as at 31 March 2017 have been used for the purpose of

Calculation of Earnings per Share. Further prior year Earnings per share was restated by using number

of shares held as at 31 March 2017

8 Investment in DCSL Pending Allotment

Melstacorp invested Rs.20Bn in Equity of DCSL with effect from 1st January 2017 where the shares

are pending to be alloted as at Balance Sheet date. DCSL used these funds to settle their liabilities

against Melstacorp.

9 Business Combinations

9.1 Acquisition of Controling Interest in Madulsima Plantations PLC

Melstacorp PLC has acquired 16,949,673 shares of Madulsima Plantations PLC during the period which was

a Associate Company to the Group previously and now has become a Subsidiary after the new Acquisition.

The New percentage holding of the Company is 55.91%

9.2 Acquisition of Non Controling Interest in Balangoda Plantations PLC

Melstacorp PLC has acquired 3,636,363 shares in Balangoda Plantations PLC and as a result the

percentage Holding has increased from 43.23% to 58.61%.

9.3 Acquisition of Shares in Aitken Spence PLC

Melstacorp PLC has acquired 8,100,000 shares in Aitken Spence PLC during the period which is Associate of

the Group and as a result the percentage Holding has increased from 45.17% to 47.17%

10 Events occurring after the reporting period

Subsequent to the reporting period, no circumstances have arisen which would require adjustment to

or disclosure in the financial statements.

11 Contingent Liabilities

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 31 March 2017.

MELSTACORP PLC


12 Top 20 Shareholders – 30th September 2017

Rank Name No of Shares %

1 Milford Exports (Ceylon) (Pvt) Limited 497,882,000 42.72

2 Lanka Milk Foods (CWE) Limited 151,846,000 13.03

3 Mr.M A Yaseen 83,530,926 7.17

4 Commercial Bank of Ceylon PLC/L E M Yaseen 52,200,000 4.48

5 Bnymany Re-Neon Liberty Lorikeet Master Fund LP 38,730,022 3.32

6 Caceis Bank Luxembourg Branch-Barca Global Master Fund LP 27,920,236 2.4

7 Northern Trust Company S/A Kuroto Fund LP 20,731,007 1.78

8 Citigroup Global Markets Limited Agency Trading Prop Securities A/C 17,151,313 1.47

9 Commercial Bank of Ceylon PLC/M A Y Yaseen 16,000,000 1.37

10 Mrs.L.E.M.Yaseen 15,506,000 1.33

11 Lahugala Plantation (Private) Limited 14,782,240 1.27

12 CITIBank New York S/A Norges Bank Account 2 13,508,447 1.16

13 Bnymsanv Re- Blackrock Frontiers Invesment Trust PLC 12,639,796 1.09

14 Deutsche Bank AG- London 11,728,376 1.01

15 Mrs.S.M Chrysostom 11,390,000 0.98

16 Bnymsanv Re-Consilium Frontier Equity Fund L P 10,401,396 0.89

17 Stassen Exports (Pvt) Ltd 8,456,800 0.73

18 Mr.Don Hasitha Stassen Jayawardena 7,531,332 0.65

19 HSBC Intl Nom Ltd- SSBT - Parametric Emerging Markets Fund 6,738,108 0.58

20 HSBC Intl Nom Ltd- SSBT - Parametric Tax-Managed Emerging Markets Fund 6,203,001 0.53

1,024,877,000 87.95

Others 140,520,072 12.05

Total 1,165,397,072 100.00

Percentage of Shares held by the public : 42.88%

Total No. of share holders who hold the public holding: 10,622

Directors' Share Holdings as at 30 September 2017

No of Shares %

Mr. D. H. S. Jayawardena -

Mr. C. R. Jansz -

Dr. A. N. Balasuriya -

Capt K J Kahada -

Mr.N de S Deva Aditya -

Mr.A .L .Gooneratne -

Mr.D.Hasitha S Jayawardena 7,531,332 0.646

Mr.R. Seevaratnam -

Ms. V. J. Senaratne (Alternate Director to Mr. N.De.S.Deva Aditya) -

Share Holding

MELSTACORP PLC


CORPORATE INFORMATION

NAME OF COMPANY

Melstacorp PLC

REGISTERED OFFICE

No.110, Norris Canal Road,

Colombo 10, Sri Lanka.

Tel: 011-5900300,

Fax: 011-5900333 Web: www.melsta.com

COMPANY REGISTRATION NUMBER

PB 11755 PQ

BOARD OF DIRECTORS

Mr.D.H.S.Jayawardena - Chairman

Mr. A.L. Gooneratne - Managing Director

Mr.C.R.Jansz

Mr.N. De S. Deva Aditya

Mr K. J. Kahanda

Dr.A.N.Balasuriya

Mr. D. Hasitha S. Jayawardena

Mr.R. Seevaratnam

Ms.V.J.Senaratne (Alternate Director to Mr.N. De S. Deva Aditya)

COMPANY SECRETARY

Ms. V.J.Senaratne

AUDITORS

KPMG

Chartered Accountants

No.32A, Sir Mohamed Macan Marker Mawatha,


REGISTRARS

P W Corporate Secretarial (Pvt) ltd.,

No. 3/17, Kynsey Road,


BANKERS

Commercial Bank of Ceylon PLC

DFCC Bank PLC

Bank of Ceylon

Hatton National Bank PLC

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