hayleys fibre plc - cdn.cse.lk · legal form bankers a public limited company hatton national bank...

HAYLEYS FIBRE PLC

INTERIM FINANCIAL STATEMENTS FOR THE

YEAR ENDED 31ST MARCH 2018

LEGAL FORM BANKERS

A Public Limited Company Hatton National Bank PLC

Incorporated in Sri Lanka in 1987 Hongkong and Shanghai Banking Corporation Ltd

Company Number PQ 21 Standard Chartered Bank

Seylan Bank PLC

People's Bank

Deutsche Bank

THE STOCK EXCHANGE LISTING Cargills Bank

The ordinary shares of the company are listed with the Colombo Stock National Development Bank PLC

Exchange of Sri Lanka NDB Wealth Management Ltd

DIRECTORS AUDITORS

A. M. Pandithage - Chairman Ernst & Young

H.S.R.Kariyawasan - Managing Director Chartered Accountants,

F. R. Alles - (Deceased 30/01/2018) 201, De Saram Place

H.C.S.Mendis - (Resigned w.e.f. 19/09/2017) P.O. Box. 101, Colombo.

Dr. S. A. B.Ekanayake Sri Lanka.

S. C. Ganegoda

T. G. Thoradeniya LEGAL ADVISORS

K. S. Padiwita Corporate Legal Department

M.I.L.Perera Julius & Creasy - Attorneys At Law

Dr. T. K. D. A. P. Samarasinghe - (Appointed w.e.f. 01/09/2017)

L. A. K. I. Kodytuakku - (Appointed w.e.f. 17/11/2017)

D. K. DE Silva Wijeyeratne - (Appointed w.e.f. 01/04/2018)

REGISTERED OFFICE SECRETARIES

Hayleys Building Hayleys Group Services (Pvt) Limited

400, Deans Road, Colombo 10, Sri Lanka. No. 400, Deans Road, Colombo 10, Sri Lanka.

Telephone :(94-11) 2627000 Telephone : (94-11) 2627650

Fax:(94-11) 2699299 Fascimile : (94-11) 2627655

E-mail : [email protected]

FACTORY / OFFICE

193, Minuwangoda Road, Kotugoda, Sri Lanka

Telephone : (94-11)2232939

Fax: (94-11) 2232941

Please direct any queries about the administration of shareholding

E-mail : [email protected] to the Company Secretaries.Web Site : www.hayleysfibre.com

CORPORATE INFORMATION

HAYLEYS FIBRE PLC 1

Unaudited Audited

As at 31st March 31st March

2018 2017

Note Rs.'000 Rs.'000

ASSETS

Non-Current Assets

Property, Plant & Equipment 72,290 64,839 #REF!

Investment in Equity Accounted Investee 67,127 49,562 #REF!

Other Non Current Financial Assets 94,576 93,048 #REF!

Total Non Current Assets 233,993 207,449

Current Assets

Inventories 45,717 27,210 #REF!

Trade and Other Receivables 65,486 85,566 #REF!

Other Current Assets 7,506 4,462 #REF!

Amounts Due from Other Related Parties 3,121 2,941 #REF!

Amounts Due from Equity Accounted Investee 2,443 - #REF!

Short Term Deposits 529,790 459,168 #REF!

Cash in Hand and at Bank 8,004 35,045 #REF!

Total Current Assets 662,067 614,392

Total Assets 896,060 821,841

EQUITY AND LIABILITIES

Equity

Stated Capital 2 80,000 80,000 #REF!

Other Component of Equity 73,152 74,779 #REF!

Amalgamation Reserves 50,625 50,625 #REF!

Revenue Reserves 595,912 531,945 #REF!

Total Equity 799,689 737,349

Non-Current Liabilities

Deferred Tax Liabilities 5,031 207 #REF!

Retirement Benefit Obligations 18,582 15,128 #REF!

Total Non-Current Liabilities 23,613 15,335

Current Liabilities

Trade and Other Payables 47,580 29,917 #REF!

Other Current Liabilities 3,723 6,717 #REF!

Amount Due to Other Related Parties 5,764 3,672 #REF!

Amount Due to Joint Venture - 73 #REF!

Income Tax Payable 2,809 5,415 #REF!

Interest Bearing Borrowings 12,882 23,363 #REF!

Total Current Liabilities 72,758 69,157

Total Liabilities 96,371 84,492

Total Equity and Liabilities 896,060 821,841

Net Assets per Share (Rs.) 99.96 92.17

-

Sgd.

M.C.Sampath

Chief Financial Officer

Figures in brackets indicate deductions.

The above figures are provisional and subject to audit.

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Signed for and on behalf of the Board by,

Sgd.

A.M.Pandithage H. S. R. Kariyawasan

Chairman Managing Director

8th May 2018

Colombo

Interim Financial Statements For the Year Ended 31st March 2018

Sgd.

STATEMENT OF FINANCIAL POSITION

I certify that the financial statements of the company comply with the requirements of the Companies Act No 7 of 2007.

HAYLEYS FIBRE PLC 2

Unaudited Audited

31st March 31st March

2018 2017 Variance

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

Revenue 562,659 478,976 83,683

Cost of Sales (489,780) (418,259) (71,521)

Gross Profit 72,879 60,717 12,162

Other Income 4,961 229,275 (224,314)

Administrative Expenses (44,422) (50,356) 5,934

Distribution Expenses (2,121) (630) (1,491)

Profit from Operations 31,297 239,006 (207,709)

Finance Income 58,215 18,129 40,086

Finance Expenses (2,039) (7,914) 5,875

Net Finance Income / (Expenses) 56,176 10,215 45,961

Share of Profit of Equity Accounted Investee (Net of Tax) 32,868 29,544 3,324

Profit Before Taxation 120,341 278,765 (158,424)

Tax Expenses (19,378) (11,495) (7,883)

Profit for the period 100,963 267,270 (166,307)

Earnings per Share (Rs.) 12.62 33.41

Share Prices

Year Ended Year Ended31/03/2018 31/03/2017

Highest Rs.92.00 Rs.104.50

Lowest Rs.61.50 Rs.37.30

Last Traded Price Rs.70.90 Rs.59.30

The Notes on pages 9 & 10 form an integral part of these Financial Statements.



INCOME STATEMENT

HAYLEYS FIBRE PLC 3

Unaudited Audited

For the Year Ended 31st March 31st March

2018 2017

Rs.'000 Rs.'000

Profit for the Year Ended 100,963 267,270

Other Comprehensive Income

Net Gain on Available-For-Sale Financial Assets 1,528 452

Re-measurement Gains/(Losses) on Defined Benefit Plans (5,764) (401)

Share of Oher Comprehensive Income of Equity Accounted Investee (39) -

Revaluation of Land - 8,058

Deferred Tax on Other Comprehensive Income (2,348) 48

Other Comprehensive Income for the Year, Net of Tax (6,623) 8,157

Total Comprehensive Income for the Year, Net of Tax 94,340 275,427



HAYLEYS FIBRE PLC 4

Quarter Ended Quarter Ended


2018 2017 Variance

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

Revenue 198,635 132,643 65,992

Cost of Sales (164,668) (108,103) (56,565)

Gross Profit 33,967 24,540 9,427

Other Income 1,059 216,791 (215,732)

Administrative Expenses (10,681) (12,251) 1,570

Distribution Expenses (546) 98 (644)

Profit from Operations 23,799 229,178 (205,380)

Finance Income 17,568 11,513 6,055

Finance Expenses (337) (1,706) 1,369

Net Finance Income / (Expenses) 17,231 9,807 7,424

Share of Profit of Equity Accounted Investee (Net of Income Tax) 9,463 2,902 6,561

Profit Before Taxation 50,493 241,887 (191,394)

Income Tax Expenses (13,654) (9,989) (3,665)

Profit for the Quarter 36,839 231,898 (195,059)

Earnings per Share (Rs.) 4.60 28.99


Share Prices 4th Quarter 4th Quarter

of 2018 of 2017

Highest Rs.82.00 Rs.93.40

Lowest Rs.68.00 Rs.57.30

Last Traded Price Rs.70.90 Rs.59.30


INCOME STATEMENT

HAYLEYS FIBRE PLC 5

For the Quarter Ended 31st March 31st March

2018 2017

Rs.'000 Rs.'000

Profit for the Quarter Ended 36,839 231,898

Other Comprehensive Income

Net Gain on Available-For-Sale Financial Assets 1,363 255

Re-measurement Gains/(Losses) on Defined Benefit Plans (5,764) (401)

Share of Oher Comprehensive Income of Equity Accounted Investee (39) -

Revaluation of Land - 8,058

Deferred Tax on Other Comprehensive Income (2,348) 48

Other Comprehensive Income for the Quarter ,Net of Tax (6,788) 7,960

Total Comprehensive Income for the Quarter ,Net of Tax 30,051 239,858


STATEMENT OF COMPREHENSIVE INCOME


HAYLEYS FIBRE PLC 6

For the Year Ended Unaudited Audited


2018 2017

Rs. '000 Rs. '000

Cash Flows from Operating Activities

Profit Before Tax 120,341 278,765

Adjustments for

Share of Profit of Equity Accounted Investee (32,868) (29,544)

Depreciation on Property, Plant & Equipment 2,347 2,915

Impairment of Property, Plant & Equipment - 829

Interest Expense 2,039 4,860

Interest Income (58,215) (13,939)

- (215,601)

Provision/(Reversal) for Slow Moving Inventories (1,613) 2,209

Provision for Defined Benefit Plan Cost 2,524 2,177

Operating Profit before Working Capital Changes 34,555 32,671

(Increase)/Decrease in Inventories (16,894) 30,364

(Increase)/ Decrease in Trade and Other Receivables 17,036 (25,624)

(Increase)/Decrease in Dues from Other Related Parties (2,623) 28,832

Increase/(Decrease) in Trade Dues to Other Related Parties 2,019 484

Increase /(Decrease) in Trade and Other Payables 14,669 578

Cash Generated from Operations 48,762 67,305

Interest Expense (2,039) (4,860)

Income Tax Paid (19,508) (3,421)

Defined Benefit Obligations (4,834) -

Net Cash Flows from Operating Activities 22,381 59,024

Cash Flows from / (Used in) Investing Activities

Acquisition of Property, Plant & Equipment (9,807) (10,109)

9 420,478

Dividend Received 508 -

Dividend Received from Equity Accounted Investee 14,756 34,209

Interest Received 58,215 13,939

Net Cash flows from Investing Activities 63,681 458,517

Dividend Paid (32,000) (16,000)

Net Cash Flows from Financing Activities (32,000) (16,000)

Net Increase/(Decrease) in Cash and Cash Equivalents 54,062 501,541

Cash and Cash Equivalents at the Beginning of the Year 470,850 (30,691)

Cash and Cash Equivalents (Note A) 524,912 470,850

A. Analysis of Cash and Cash Equivalents

Cash & Bank Balance 8,004 35,045

Short Term Deposits 529,790 459,168

537,794 494,213

Short Term Loan and Overdrafts (12,882) (23,363)

Cash in Hand and at Bank 524,912 470,850

Figures in brackets indicate deductions. -


STATEMENT OF CASH FLOW

Net gain on Disposal of Property, Plant and Equipment and

Investment Property

Proceeds from Sale of Property, Plant & Equipment and investment

property

HAYLEYS FIBRE PLC 7

Amalgamation Amalgamation Retained Total

Stated Revaluation Available Capital Revenue Earnings

Capital Reserve for Sale Reserve Reserve Reserve

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

Balance as at 1st April 2016 80,000 189,001 51,786 14,000 36,625 106,510 477,922

Profit for the Year - - - - - 267,270 267,270

Acturial Gain on Employee Benefit Obligations - - - - - (401) (401)

Deferred Tax on Other Comprehensive Income - - - - - 48 48

Net Gain on Available for Sale Financial Assets - - 452 - - - 452

Surplus on revaluation of land - 8,058 - - - - 8,058

Land Revaluation Reserve Transfer - (174,518) - - - 174,518 -

Dividend Paid - - - - - (16,000) (16,000)

Balance as at 31st March 2017 80,000 22,541 52,238 14,000 36,625 531,945 737,349

Balance as at 1st April 2017 80,000 22,541 52,238 14,000 36,625 531,945 737,349

Profit for the Year - - - - - 100,963 100,963

Acturial Gain on Employee Benefit Obligations - - - - - (5,764) (5,764)

Deferred Tax on Other Comprehensive Income - (3,155) - - - 807 (2,348)

Share of other comprehensive income of equity

accounted investee- - - - - (39) (39)

Net Gain on Available for Sale Financial Assets - - 1,528 - - - 1,528

Dividend Paid * - - - - - (32,000) (32,000)

Balance as at 31st March 2018 80,000 19,386 53,766 14,000 36,625 595,912 799,689

*Company paid a Second Interim (final) dividend of Rs. 2/= per share on 9th June 2017 for the financial year 2016/2017.

*Company paid a First Interim dividend of Rs. 2/= per share on 27th February 2018 for the financial year 2017/2018.

STATEMENT OF CHANGES IN EQUITY

Attributable to Owners of the Company

Other Component of Equity`


HAYLEYS FIBRE PLC 8

1

2 Stated Capital 31st March 2018 31st March 2017

Value - ordinary shares (Rs.) 80,000,000 80,000,000

No of shares - ordinary shares 8,000,000 8,000,000

Voting rights One vote per

ordinary share

One vote per

ordinary share

3 Contingencies

year ended 31.03.2018.

4 Events Occurring after the Reporting Date

5 Share Trading from 1st April 2017 to 31st March 2018

No of transactions 7,089

No of shares traded 1,749,119

Value of shares traded (Rs.) 136,390,175

The Directors have recommended the payment of proposed final dividend of cents 75 per share on 8th May 2018, for the year ended

31st March 2018, payable on 6th July. In accordance with Sri Lanka Accounting Standard No.10 on "Events after reporting period",

this dividend has not been recognized as a liability as at the reporting date.


Notes to the Financial Statements

There has not been a significant change in the nature of contingent liabilities, which were disclosed in the Annual Report for the

The Interim Financial Statements of the Company have been prepared on the basis of the same accounting policies and methods applied for the

year ended 31st March 2017, are in compliance with Sri Lanka Accounting Standards -LKAS 34 - "Interim Financial Reporting". where

necessary, comparative figures have been re-classified to confirm with the current presentation as per the SLFRS/LKAS adjustment.

HAYLEYS FIBRE PLC 9

6 Twenty Largest Shareholders March

2018

No of Shares %

1 Hayleys PLC No. 3 Share Investment A/C 5,200,000 65.00

2 Nation Lanka Capital LTD / Mr. K. L. G. Udayananda 126,541 1.58

3 People's Merchant Finance PLC / J. P. N. P. K. Jayasekera 89,235 1.12

4 Mr. S. Srikanthan & Mrs. S. Srikanthan 75,000 0.94

5 Mrs. M. J. Nihara 53,456 0.67

6 Mr. A. R. Ibrahim 48,220 0.60

7 Mrs. G. J. E. S. De Fonseka 38,570 0.48

8 Bansei Securities Capital (Pvt) Ltd / C. J. Gunarathna 34,571 0.43

9 Dr. D. Jayanntha 32,000 0.40

10 MBSL / Mr. N. K. C. J. De Silva 31,674 0.40

11 People's Leasing & Finance PLC / Mr. D. N. Perera 26,680 0.33

12 Mr. N. K. A. D. De Silva 26,205 0.33

13 Mr. R. Rasaretnam (Deceased) 26,052 0.33

14 Mr. J. P. N. P. Jayasekera 25,328 0.32

15 Mr. J. P. R. Karunarathne 25,006 0.31

16 Mr. T. C. U. Jayanetti & Dr. A. L. T. P. Amarawickrama 25,000 0.31

17 Mrs. L.P. Thenabadu & Mr. S.K. Thenabadu 23,832 0.30

18 Dr. A.K.A. Jayawardene 22,042 0.28

19 Mr. T.D. De Jonk 20,653 0.26

20 Mr. P. V. D. S. S. Saparamadu & Mrs. R. M. A. P. Rathnayake 20,000 0.25

Total 5,970,065 74.63

7 Director's Shareholdings as at 31st March 31st March

2018 2017

No of Shares No of Shares

MR. A. M. PANDITHAGE 320 320

MR. H. S. R. KARIYAWASAN NIL NIL

DR. S. A. B. EKANAYAKE NIL NIL

MR. S. C. GANEGODA 608 608

MR. T. G. THORADENIYA NIL NIL

MR. K. S. PADIWITA 1,280 1,280

MR. M. I. L. PERERA NIL NIL

Dr. T. K. D. A. P. SAMARASINGHE NIL NIL

MR. L. A. K. I. KODYTUAKKU NIL NIL

MR. D. K. DE SILVA WIJEYERATNE - (Appointed w.e.f. 01/04/2018) NIL NIL

8 Public Holding

PERCENTAGE OF PUBLIC HOLDING 34.97%

TOTAL NO. OF SHAREHOLDERS REPRESENTING PUBLIC HOLDING 4,441

FLOAT-ADJUSTED MARKET CAPITALIZATION 198,349,840

9 There were no non voting shares as at 31st March 2018

Name


NOTES TO THE FINANCIAL STATEMENTS

The Company complies with option 5 of the Listing Rules 7.13.1 (a) – Less than Rs.2.5 Bn Float Adjusted Market Capitalization which requires 20% minimum Public Holding.

Name of the Director

HAYLEYS FIBRE PLC 10

hayleys fibre plc - cdn.cse.lk · legal form bankers a public limited company hatton national bank...

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