condensed interim financial report · the fmcg sector continued the same growth trend as the...

CONDENSED INTERIM FINANCIAL REPORT

C T Holdings PLC - September 2017

Operational review 02

Condensed statement of profit or loss and other comprehensive income 03

Condensed statement of financial position 05

Condensed statement of changes in equity 06

Condensed statement of cash flows 07

Operating segments 08

Explanatory notes 10

Corporate information Inner Back Cover

Contents

The Board of Directors of C T Holdings PLC are pleased to present the provisional financial statements for the six months ended 30th September 2017.

These financial statements are provisional and subject to audit.

Sectoral Results

The Retail sector, which accounts for approximately 80% of the total revenue, achieved a growth of 7.37% for the half year to reach Rs 36.64 Bn for

the period. Operating profits amounted to Rs 1.74 Bn compared to Rs 1.69 Bn in the previous period. This sector invested in expanding its network

and logistical infrastructure in order to effectively connect more markets for the rural economy. Fresh job opportunities were also created with more

than 2,100 recruitments made during the second quarter of this year. The investments being made by the Group will, no doubt, create many more

opportunities across the island for further development of the agricultural economy through improved returns, reinvestment and modernization.

The FMCG sector continued the same growth trend as the previous quarter recording year on year growth of 10.53% over the first half of 2016.

Revenue of this sector amounted to Rs 7.03 Bn (2016 – Rs 6.36 Bn). The brands of the Group such as ‘Magic’, Kotmale’ and ‘Kist’ occupy leadership

positions within this sector. We foresee good prospects for further growth for these brands. Such growth would in turn also benefit the dairy farming

and agri business community with whom strong linkages have been built by this sector. Operating profit of this sector for the period amounted to Rs

1.11 Bn, which is above the operating profits of the previous period by 7.6%.

The Restaurant sector is enjoying its best year with revenues reaching 1.84 Bn, a growth of 14.6% over the corresponding period with operating

profits also showing a substantial growth of 71.4% over the same period. The sector’s KFC Franchise opened 3 new stores in the latter part of the

previous financial year.

The Real Estate and Entertainment sectors showed steady performances during the current period. Increased urbanization has resulted in increased

demand for entertainment. The Group, recognizing this opportunity, commenced setting up multiplex cinemas in towns and cities outside the

Colombo Metropolis. Several locations have already been identified for this expansion over the next few years. Associate company results for the

period were also significantly better than in the corresponding period due to the improved performances recorded by Cargills Bank Ltd.

The Group disposed its properties in Colombo 2 for a consideration of Rs 4.2 Bn. A profit of Rs 1.01 Bn has been booked on this transaction during the

current quarter.

Group Results

The overall volumes of the second quarter are generally lower than the other quarters. This trend is reflected in the current year as well. Total

revenue, however, continued on the positive trend achieving growth of 7.17% for the last quarter and 8.12% for the half year when compared to the

corresponding periods of the previous year.

Net profit for the period amounted to Rs 2.46 Bn, which is 75.5% above the corresponding period. When adjusted for the profit on the disposal of the

Group’s freehold properties, the Net profit for the period amounted to Rs 1.45 Bn compared to Rs 1.40 Bn for the corresponding period of last year.

The proceeds from the disposal of property also improved the net borrowings position of the Group, which reduced from Rs 13.3 Bn as at 31st March

2017 to Rs 8.6 Bn as at 30th September 2017. In the present high interest rate environment, reduced external debt position would translate to

substantial reduction in interest costs going forward.

Appropriations

The Directors declared an interim dividend of Rs 1.80 per share from the profits of the current period, which was paid on 29th September 2017. The

corresponding interim dividend for the last year, which was paid on 19th January 2017 amounted to Rs 1.70 per share.

Future

Based on the results to date, we expect the second half of the year to mirror the results of first half year, with steady growth across sectors. The

Group will continue to aggressively expand its businesses across the country, improve productivity and range in its businesses, and to deliver on our

ethos of transforming regional economies.

Operational Review

C T Holdings PLCCondensed interim financial statements - September 201702

Condensed statement of profit or loss and other comprehensive income

Consolidated For the three months ended For the six months ended

30th Sep 30th Sep Var. 30th Sep 30th Sep Var.

In thousands of rupees 2017 2016 % 2017 2016 %

Revenue 22,828,544 21,300,441 7 45,927,674 42,477,064 8

Cost of sales (20,067,414) (18,553,242) (8) (40,223,390) (37,023,005) (9)

Gross profit 2,761,130 2,747,199 1 5,704,284 5,454,059 5

Other income 1,575,810 461,742 241 2,077,791 926,551 124

Distribution expenses (615,195) (582,404) (6) (1,212,981) (1,114,144) (9)

Administrative expenses (1,033,346) (990,358) (4) (2,085,319) (1,976,985) (5)

Other expenses (120,773) (144,397) 16 (242,111) (288,749) 16

Results from operating activities 2,567,626 1,491,782 72 4,241,664 3,000,732 41

Finance income 93,722 43,267 117 165,295 161,586 2

Finance expenses (480,470) (345,558) (39) (928,108) (658,526) (41)

Net finance costs (386,748) (302,291) (28) (762,813) (496,940) (54)

Share of profit / (loss) of associates, net of tax 12,155 (22,282) 155 40,902 (68,070) 160

Profit before taxation 2,193,033 1,167,209 88 3,519,753 2,435,722 45

Tax on profit for the period (511,939) (463,884) (10) (987,925) (898,697) (10)

Profit after tax on profit 1,681,094 703,325 139 2,531,828 1,537,025 65

Tax effect of dividends paid to equity holders (70,747) (134,321) 47 (70,747) (134,645) 47

Profit for the period 1,610,347 569,004 183 2,461,081 1,402,380 75

Other comprehensive income - net of tax

Items that may be re-classified subsequently to profit or loss:

Net change in fair value of available-for-sale financial assets (9,667) (7,903) (22) 28,717 807 3,458

Share of other comprehensive income of associates 6,179 7,443 (17) 4,376 (7,560) 158

Total other comprehensive income - net of tax (3,488) (460) (658) 33,093 (6,753) 590

Total comprehensive income 1,606,859 568,544 183 2,494,174 1,395,627 79

Profit for the period attributable to

Owners of the parent 1,143,727 434,965 163 1,712,799 971,946 76

Non-controlling Interest 466,620 134,039 248 748,282 430,434 74

Profit for the period 1,610,347 569,004 183 2,461,081 1,402,380 75

Total comprehensive income attributable to

Owners of the parent 1,134,060 434,344 161 1,741,516 965,221 80

Non-controlling Interest 472,799 134,200 252 752,658 430,406 75

Total comprehensive income 1,606,859 568,544 183 2,494,174 1,395,627 79

Earnings per share (Rs.) 6.25 2.38 163 9.35 5.31 76

Dividends per share (Rs.)*

Interim Dividend (2017/18) 1.80 - 100 1.80 - 100

Final Dividend (2015/16) - 2.80 (100) - 2.80 (100)

1.80 2.80 (36) 1.80 2.80 (36)

* Please refer explanatory note no. 6(c).

C T Holdings PLCCondensed interim financial statements - September 2017 03

Condensed statement of profit or loss and other comprehensive income

Company For the three months ended For the six months ended

30th Sep 30th Sep Var. 30th Sep 30th Sep Var.

In thousands of rupees 2017 2016 % 2017 2016 %

Other income (Investment income) 5,957 3,814 56 11,915 12,695 (6)

Administrative expenses (14,966) (19,097) 22 (33,876) (32,664) (4)

Results from operating activities (9,009) (15,283) 41 (21,961) (19,969) (10)

Finance income 363,722 420,217 (13) 369,572 443,708 (17)

Finance expenses - (33) 100 (6) (35) 83

Net finance costs 363,722 420,184 (13) 369,566 443,673 (17)

Profit before taxation 354,713 404,901 (12) 347,605 423,704 (18)

Tax on profit for the period (8,727) (6,964) (25) (8,869) (7,323) (21)

Profit for the period 345,986 397,937 (13) 338,736 416,381 (19)

Other comprehensive income - net of tax

Items that may be re-classified subsequently to profit or loss:

Net change in fair value of available-for-sale financial assets (11,559) (8,435) (37) 19,227 909 2,015

Total other comprehensive income - net of tax (11,559) (8,435) (37) 19,227 909 2,015

Total comprehensive income 334,427 389,502 (14) 357,963 417,290 (14)

Earnings per share (Rs.) 1.89 2.17 (13) 1.85 2.27 (19)

Dividends per share (Rs.) 1.80 2.80 (36) 1.80 2.80 (36)


Condensed statement of financial position

Consolidated Company

As at 30th Sep 30th Sep 31st Mar 30th Sep 30th Sep 31st Mar

In thousands of rupees 2017 2016 2017 2017 2016 2017

Assets

Non-current assets

Property, plant & equipment 24,425,310 21,558,355 23,307,407 4,230 6,933 5,569

Prepaid lease rentals to acquire rights to use lands 177,221 184,270 180,245 - - -

Investment properties 7,380,006 9,828,586 10,524,586 1,447,550 1,443,251 1,447,550

Goodwill and other intangible assets 1,469,878 1,396,957 1,527,680 688,467 688,467 688,467

Investments in subsidiaries - - - 2,215,248 1,525,451 2,215,248

Investments in equity accounted investees 6,333,315 6,204,135 6,293,711 2,906,169 2,906,169 2,906,169

Other investments 517,947 478,724 450,144 310,991 342,050 291,762

Deferred tax assets 36,129 61,078 49,564 - - -

Total non-current assets 40,339,806 39,712,105 42,333,337 7,572,655 6,912,321 7,554,765

Current assets

Inventories 7,636,867 6,587,599 8,340,128 - - -

Trade and other receivables 4,998,237 4,188,093 4,673,958 1,021 667 1,019

Amounts due from subsidiaries - - - 14,164 804,726 12,700

Amounts due from other related parties 21,971 10,833 - 435 1,050 428

Other short term financial assets 15,397 19,616 14,481 - - -

Cash and cash equivalents 7,170,744 2,387,444 2,500,830 236,159 195,430 270,710

Total current assets 19,843,216 13,193,585 15,529,397 251,779 1,001,873 284,857

Total assets 60,183,022 52,905,690 57,862,734 7,824,434 7,914,194 7,839,622

Equity and liabilities

Equity attributable to owners of the parent

Stated capital 3,194,008 3,194,008 3,194,008 3,194,008 3,194,008 3,194,008

Reserves 4,608,850 4,619,095 4,583,173 418,741 429,716 399,514

Retained earnings 12,292,188 11,398,622 11,016,858 3,995,839 4,055,535 3,986,678

Total equity attributable to

equity holders of the parent 20,095,046 19,211,725 18,794,039 7,608,588 7,679,259 7,580,200

Non-controlling interest 4,091,835 3,553,041 3,405,406 - - -

Total equity 24,186,881 22,764,766 22,199,445 7,608,588 7,679,259 7,580,200

Liabilities

Non-current liabilities

Borrowings 2,096 2,452 2,569 - - -

Employee benefits 904,844 781,937 828,996 16,301 14,957 15,504

Deferred income 97,865 79,121 103,607 - - -

Trade and other payables 3,104,720 2,615,757 2,940,780 - - -

Deferred tax liabilities 1,249,137 1,060,495 1,287,415 - - -

Total non-current liabilities 5,358,662 4,539,762 5,163,367 16,301 14,957 15,504

Current liabilities

Trade and other payables 11,985,222 10,598,593 12,287,120 10,992 11,506 9,823

Current tax liabilities 2,690,299 1,942,490 2,163,869 2,276 1,021 1,805

Amounts due to subsidiaries - - - - 556 -

Amounts due to other related parties 6,627 - 1,264 - - -

Borrowings 13,037,778 9,042,753 12,580,230 - - -

Dividends payable 186,277 206,895 232,290 186,277 206,895 232,290

Bank overdrafts 2,731,276 3,810,431 3,235,149 - - -

Total current liabilities 30,637,479 25,601,162 30,499,922 199,545 219,978 243,918

Total equity & liabilities 60,183,022 52,905,690 57,862,734 7,824,434 7,914,194 7,839,622

Net Asset Value per Share (Rs.) 109.75 104.93 102.65 41.55 41.94 41.40

The Board of Directors is responsible for the preparation and presentation I certify that these Financial Statements have been prepared inof these Financial Statements. The Financial Statements have been accordance with the requirements of the Companies Act No 7

approved by the Board of Directors on 14th November 2017. of 2007.

(Signed ) (Signed ) (Signed )

V R Page A T P Edirisinghe S C Niles

Deputy Chairman / Director Executive Director

Managing Director


Condensed statement of changes in equity

Consolidated <-------------------------- Attributable to the owners of the parent --------------------------> TotalStated Revaluation AFS General Retained Total

Capital Reserve Reserve Reserve Earnings

In thousands of rupees

For the six months ended 30th September 2016

Balance at 1st April 2016 3,194,008 4,127,957 123,083 367,220 11,047,414 18,859,682 4,662,872 23,522,554

Total comprehensive income for the period

Profit for the period - - - - 971,946 971,946 430,434 1,402,380

Other comprehensive income

Net change in fair value of available-for-sale financial assets - - 835 - (7,560) (6,725) (28) (6,753)

Transactions with owners directly recorded in equity

Contributions by & distributions to owners

Dividends paid - - - - (512,672) (512,672) (230,248) (742,920)

Put options written on non-controlling interest - - - - (107,414) (107,414) (45,596) (153,010)

Changes in ownership interest

Disposal of partial interest without

a change in control - - - - (4,258) (4,258) 13,845 9,587

Acquisition of subsidiary - - - - - - (36,706) (36,706)

Acquisition of non-controlling interest - - - - 11,166 11,166 (106,440) (95,274)

Acquisition of equity accounted investees - - - - - - (1,135,092) (1,135,092)

Balance as at 30th September 2016 3,194,008 4,127,957 123,918 367,220 11,398,622 19,211,725 3,553,041 22,764,766


Balance at 1st April 2017 3,194,008 4,127,957 87,996 367,220 11,016,858 18,794,039 3,405,406 22,199,445


Profit for the period - - - - 1,712,799 1,712,799 748,282 2,461,081


Net change in fair value of available-for-sale financial assets - - 25,677 - - 25,677 3,040 28,717

Share of other comprehensive

income of associates - - - - 4,376 4,376 - 4,376



Dividends paid - - - - (329,575) (329,575) (66,490) (396,065)

Equity settled share based payment - - - - - - 49,254 49,254

Put options written on non-controlling interest - - - - (112,270) (112,270) (47,657) (159,927)

Balance as at 30th September 2017 3,194,008 4,127,957 113,673 367,220 12,292,188 20,095,046 4,091,835 24,186,881

Company Stated Revaluation AFS General Retained Total

Capital Reserve Reserve Reserve Earnings

In thousands of rupees


Balance at 1st April 2016 3,194,008 74,999 140,270 213,538 4,151,826 7,774,641


Profit for the period - - - - 416,381 416,381


Net change in fair value of

available-for-sale financial assets - - 909 - - 909

Defined benefit plan actuarial gains / (losses) - - - - - -



Dividends paid - 2015/16 (final) - - - - (512,672) (512,672)

Balance as at 30th September 2016 3,194,008 74,999 141,179 213,538 4,055,535 7,679,259


Balance at 1st April 2017 3,194,008 74,999 110,977 213,538 3,986,678 7,580,200


Profit for the period - - - - 338,736 338,736


Net change in fair value of

available-for-sale financial assets - - 19,227 - - 19,227



Dividends paid - 2017/18 (interim) - - - - (329,575) (329,575)

Balance as at 30th September 2017 3,194,008 74,999 130,204 213,538 3,995,839 7,608,588

Non-

controlling

Interest


Condensed statement of cash flows

Consolidated Company

For the six months ended 30th Sep 30th Sep 30th Sep 30th Sep

In thousands of rupees 2017 2016 2017 2016

Cash flows from operating activities

Profit for the period 3,519,753 2,435,722 347,605 423,704

Adjustments for:

Depreciation of property, plant & equipment 1,149,578 913,984 1,344 1,365

Amortisation of prepaid lease rentals 3,023 1,099 - -

Amortisation of intangible assets (5,741) 18,434 - -

Interest income (154,901) (129,647) (9,689) (8,018)

Profit on sale of property, plant & equipment (681) (26,792) - -

Profit on sale of investment properties (1,012,178) - - -

Dividend income (6,503) (8,178) (359,883) (413,231)

Finance cost 928,108 658,526 - -

Share of loss of equity accounted investees (40,902) 68,070 - -

Reversal / (charge) for impairment of trade and other receivables (1,912) 29,849 - -

Amortisation of deferred income - (5,742) - -

Provision for slow moving and obsolete inventories (9,699) 12,190 - -

Provision for employee benefit 114,171 108,517 797 547

Equity settled share based payment transaction 49,254 - - -

Gain on disposal of available for sale investments - (22,535) - (22,459)

Cash generated from / (used in) operating activities before working capital 4,531,370 4,053,497 (19,826) (18,092)

Change in inventories 712,960 631,113 - -

Change in trade and other receivables (322,367) (408,480) (1,475) (167)

Change in amounts due from related parties (21,971) 11,573 - -

Change in trade and other payables (297,891) (522,218) 1,164 (307)

Change in amounts due to related parties 5,363 (1,639) - -

Cash generated from / (used in) operating activities 4,607,464 3,763,846 (20,137) (18,566)

Interest paid (927,933) (658,526) - -

Income tax paid (557,085) (667,465) (8,398) (10,143)

Employee benefits paid (38,323) (24,835) - -

Net cash from / (used in) operating activities 3,084,123 2,413,020 (28,535) (28,709)

Cash flows from investing activities

Proceeds from sale of property, plant and equipment 918 40,059 - -

Interest received 154,901 129,647 9,689 8,018

Dividends received 12,176 8,178 359,883 413,312

Proceeds from sale of investments - 990,756 - 905,953

Proceeds from sale of investment properties 4,156,758 - - -

Acquisition of property, plant and equipment (2,206,472) (1,531,732) - -

Prepaid lease rentals to acquire rights to use lands - (153,349) - -

Improvements to investment property - (320) - -

Acquisition of intangible assets (3,437) (8,811) - -

Acquisition of subsidiary, net of cash acquired - (133,088) - (95,274)

Acquisition of non-controlling interests - (85,687) - -

Acquisition of investment in equity accounted investees - (3,219,621) - (686,516)

Acquisition of other investments (40,000) (51,362) - (46,187)

Net cash from / (used in) investing activities 2,074,844 (4,015,330) 369,572 499,306

Cash flows from financing activities

Net short term borrowings 655,823 1,050,108 - -

Long term borrowings received - 241 - -

Repayment of long term borrowings (198,300) (267,114) - -

Payment of finance lease liabilities (624) - - -

Dividends paid to owners (329,575) - (375,588) (512,672)

Dividends paid to non controlling interest (112,503) (742,920) - -

Net cash from / (used in) financing activities 14,821 40,315 (375,588) (512,672)

Net increase / (decrease) in cash and cash equivalents 5,173,788 (1,561,995) (34,551) (42,075)

Cash and cash equivalents at 1st April (734,319) 139,008 270,710 237,505

Net increase / (decrease) in cash and cash equivalents 5,173,788 (1,561,995) (34,551) (42,075)

Cash and cash equivalents at 30th September 4,439,469 (1,422,987) 236,159 195,430


Operating segments

For the six months ended 30th Sep 30th Sep 30th Sep 30th Sep 30th Sep 30th Sep


Revenue

Gross revenue 37,247,319 34,589,163 9,793,263 8,827,736 1,835,190 1,601,616

Eliminations of inter segment revenue (603,162) (459,163) (2,766,426) (2,470,570) - -

External revenue 36,644,157 34,130,000 7,026,837 6,357,166 1,835,190 1,601,616

Segment result

Results from operating activities 1,744,650 1,691,364 1,111,832 1,033,579 218,851 127,679

As at 30th Sep 30th Sep 30th Sep 30th Sep 30th Sep 30th Sep


Segment assets

Segment non-current assets

Property, plant and equipment 16,187,683 14,754,542 5,130,031 4,377,042 931,058 314,295

Prepaid lease rentals to acquire rights to use lands 145,985 149,514 23,187 24,063 - -

Investment properties 766,475 2,983,850 - - - -

Goodwill and other intangible assets 75,444 - 614,502 609,547 91,186 98,331

Other investments 6,000 6,500 - - - -

Deferred tax assets - 6,375 35,763 54,703 - -

Total segment non-current assets 17,181,587 17,900,781 5,803,483 5,065,355 1,022,244 412,626

Current assets

Inventories 5,605,406 5,204,665 1,957,589 1,296,979 70,496 82,340

Trade and other receivables 2,991,694 2,357,550 1,554,615 1,463,945 163,715 152,499

Amount receivable from other related companies 19,978 5,317 1,558 1,995 - -

Other investments 15,276 19,479 58 70 63 67

Cash and cash equivalents 1,742,831 824,817 1,251,207 1,184,846 61,723 57,325

Total segment current assets 10,375,185 8,411,828 4,765,027 3,947,835 295,997 292,231

Total segment assets 27,556,772 26,312,609 10,568,510 9,013,190 1,318,241 704,857

Segment liabilities


Borrowings - - 2,096 2,452 - -

Employee benefits 789,473 651,884 65,930 72,902 - -

Deferred income - - 67,641 79,121 - -

Trade and other payables 2,921,086 2,404,753 - - - -

Deferred tax liabilities 403,889 335,237 394,476 310,957 86,334 88,060

Total segment non-current liabilities 4,114,448 3,391,874 530,143 465,432 86,334 88,060

Current liabilities

Trade and other payables 9,590,413 8,363,502 1,655,159 1,447,913 493,150 554,535

Current tax liabilities 1,132,780 814,476 1,267,115 973,447 251,692 119,296

Amounts due to other related companies - - - - - -

Borrowings 9,497,371 6,873,577 3,540,407 2,169,176 - -

Bank overdrafts 1,519,361 3,157,639 1,010,335 557,471 170,125 91,356

Total segment current liabilities 21,739,925 19,209,194 7,473,016 5,148,007 914,967 765,187

Total segment liabilities 25,854,373 22,601,068 8,003,159 5,613,439 1,001,301 853,247

Retail & Wholesale Distribution FMCG Restaurants

Retail & Wholesale Distribution FMCG Restaurants


Operating segments (continued)

For the six months ended 30th Sep 30th Sep 30th Sep 30th Sep 30th Sep 30th Sep


Revenue

Gross revenue 257,016 244,312 195,301 172,562 49,328,089 45,435,389

Eliminations of inter segment revenue (30,827) (28,592) - - (3,400,415) (2,958,325)

External revenue 226,189 215,720 195,301 172,562 45,927,674 42,477,064

Segment result

Results from operating activities 1,183,578 152,615 5,339 16,089 4,264,250 3,021,326

Corporate and other unallocated operating profit (22,586) (20,594)

Total results from operating activities 4,241,664 3,000,732

As at 30th Sep 30th Sep 30th Sep 30th Sep 30th Sep 30th Sep


Segment assets

Non-current assets

Property, plant and equipment 554,053 550,378 281,379 217,039 23,084,204 20,213,296

Prepaid lease rentals to acquire rights to use lands - - 8,049 10,693 177,221 184,270

Investment properties 6,474,231 6,711,735 - - 7,240,706 9,695,585

Goodwill and other intangible assets - - 279 614 781,411 708,492

Other investments 200,957 130,174 - - 206,957 136,674

Deferred tax assets - - 366 - 36,129 61,078

Total segment non-current assets 7,229,241 7,392,287 290,073 228,346 31,526,628 30,999,395

Current assets

Inventories - - 3,376 3,615 7,636,867 6,587,599

Trade and other receivables 247,801 187,750 39,391 25,682 4,997,216 4,187,426

Amount receivable from other related companies - - - 2,471 21,536 9,783

Other investments - - - - 15,397 19,616

Cash and cash equivalents 3,875,192 81,823 3,632 43,204 6,934,585 2,192,015

Total segment current assets 4,122,993 269,573 46,399 74,972 19,605,601 12,996,439

Total segment assets 11,352,234 7,661,860 336,472 303,318 51,132,229 43,995,834

Corporate and other unallocated assets 9,050,793 8,909,856

Total liabilities 60,183,022 52,905,690

Segment liabilities


Borrowings - - - - 2,096 2,452

Employee benefits 28,531 39,134 4,609 3,061 888,543 766,981

Deferred income 30,225 - - - 97,866 79,121

Trade and other payables 183,634 211,004 - - 3,104,720 2,615,757

Deferred tax liabilities 391,507 358,854 - - 1,276,206 1,093,108

Total segment non-current liabilities 633,897 608,992 4,609 3,061 5,369,431 4,557,419

Current liabilities

Trade and other payables 118,273 125,098 28,067 7,093 11,885,062 10,498,141

Current tax liabilities 33,429 25,582 3,007 8,667 2,688,023 1,941,468

Amounts due to other related companies - - 6,627 - 6,627 -

Borrowings - - - - 13,037,778 9,042,753

Bank overdrafts 31,455 3,965 - - 2,731,276 3,810,431

Total segment current liabilities 183,157 154,645 37,701 15,760 30,348,766 25,292,793

Total segment liabilities 817,054 763,637 42,310 18,821 35,718,197 29,850,212

Corporate and other unallocated liabilities 277,944 290,712

Total liabilities 35,996,141 30,140,924

Entertainment

Entertainment

Consolidated

Consolidated

Real Estate

Real Estate


Explanatory notes

01. Basis of Preparation

02. Stated Capital

Stated Capital of the Company as at 30th September 2017 is represented by 183,097,253 ordinary shares.

03. Market Price Per Share

For the three months ended 30th September 2017 2016 Change Change

(Rs) (Rs) (Rs) %

Last Traded 170.00 123.00 47.00 38.21%

Highest 170.00 132.00 38.00 28.79%

Lowest 140.00 120.00 20.00 16.67%

04. Directors’ Shareholdings

As at 30th September 2017 2016

Louis Page 10,000 10,000

Ranjit Page 11,607,591 10,927,338

J B L De Silva 213 213

Priya Edirisinghe 30,036 30,036

Sunil Mendis - -

Mrs. Cecilia Muttukumaru 1,339,500 1,190,999

Joseph Page 6,426,520 6,426,520

R Selvaskandan - -

Dr. A Aravinda Page 19,650 1,750

A D B Talwatte - -

M I Abdul Wahid - -

S C Niles 51,350 -

19,484,860 18,586,856

05. Public Shareholding

As at 30th September 2017 2016

Shareholders (No's) 1,438 1,548

Shareholding (%) 38.62% 39.20%

06. Operations

a. Employee Share Option Scheme

b. Disposal of investment properties

These Financial Statements of C T Holdings Group, prepared in accordance with the Sri Lanka Accounting Standards (SLFRSs) for the six months ended 30th

September 2017, are provisional and subject to Audit.

These Financial Statements have been prepared in accordance with Sri Lanka Accounting Standard No. 34 – Interim Financial Statements and use the same

accounting policies and presentation as in the Financial Statements for the year ended 31st March 2017.

An Employee Share Option Scheme (ESOS) proposed by the Directors of the subsidiary Cargills (Ceylon) PLC (CCP) was approved by the shareholders of CCP at

an Extra Ordinary General Meeting held on 29th June 2017.

Under the terms of the ESOS, which are in compliance with the Listing Rules of the Colombo Stock Exchange, a maximum number of six million seven hundred

and twenty thousand (6,720,000) ordinary voting shares could be issued which is equivalent to 3.0% of the issued capital of CCP. The share options would be

granted in three tranches which would constitute –

(a) a first tranche of 3,360,000 options constituting 1.50% of the issued shares of the Company;

(b) a second tranche of 1,680,000 options constituting 0.75% of the issued shares of the Company;

(c) a third tranche of 1,680,000 options constituting 0.75% of the issued shares of the Company;

Each of the aforesaid tranches would be subdivided in to sub tranches with different vesting periods and exercise periods. Share options would be issued to

employees who are eligible for the award of the share options for a consideration that is equivalent to the volume weighted average price during the period

of thirty (30) market days immediately prior to the respective grant dates for each tranche. The first tranche would be issued in three equal sub tranches

commencing from 30th September 2017 at a value of Rs. 211.40 per share. The cost of Share Based Payments accounted in the Group’s Financial Statements

for the period amounts to Rs 49.25 Mn.

During the period the subsidiary Dawson Office Complex (Pvt) Ltd disposed of its freehold property situated in Colombo at a value of Rs 4,204 Mn. The profit

recognized on this disposal amounted to Rs 1,012 Mn.


Explanatory Notes (continued)

c. Dividends Per Share

07. Top 20 Shareholders

2017 2016

No's % No's %

Odeon Holdings (Ceylon) (Pvt) Ltd 76,442,848 41.75% 76,442,848 41.75%

Mr. Anthony A. Page 15,910,261 8.69% 15,910,261 8.69%

Mr. Ranjit Page 11,607,591 6.34% 10,927,338 5.97%

Sir Chittampalam A Gardiner Trust 9,200,004 5.02% 9,200,004 5.02%

Ms. M.M. Page 8,915,328 4.87% 8,786,390 4.80%

Employees Provident Fund 6,988,170 3.82% 6,988,170 3.82%

Mr. Joseph Page 6,426,520 3.51% 6,426,520 3.51%

Mrs. T. Selvaratnam 5,152,045 2.81% 5,152,045 2.81%

BNYMSANV RE-CF Ruffer Total Return Fund 4,300,000 2.35% 4,300,000 2.35%

BNYMSANV RE-CF Ruffer Absolute Return Fund 3,351,080 1.83% 3,351,080 1.83%

Mrs. Tanya Selvaratnam 2,565,000 1.40% 2,565,000 1.40%

Mr. T Selvaratnam 2,565,000 1.40% 2,565,000 1.40%

2,093,683 1.14% 2,093,683 1.14%

BNYMSANV RE-CF Ruffer Investment Funds : CF Ruffer Pacific Fund 2,000,000 1.09% 2,000,000 1.09%

HSBC Intl Nom Ltd - JPMCB - Pacific Assets Trust PLC 1,787,950 0.98% 1,787,950 0.98%

Melstacorp Ltd 1,475,500 0.81% 1,475,500 0.81%

Mrs. Cecilia Muttukumaru 1,339,500 0.73% 1,190,999 0.65%

Ms. A.M. Basnayake 890,599 0.49% 866,080 0.47%

Mr. P.E. Muttukumaru 853,000 0.47% 846,000 0.46%

The Galle Face Hotel Co. Ltd 832,275 0.45% 832,275 0.45%

164,696,354 89.95% 163,707,143 89.41%

Others 18,400,899 10.05% 19,390,110 10.59%

Total 183,097,253 100.00% 183,097,253 100.00%

08. Contingent liabilities

09. Events after the reporting periodNo other events have occurred since the reporting date which would require adjustment to or disclosure in these Financial Statements.

10. Comparative figuresWhere relevant, certain comparative figures have been re- classified to conform to the current period presentation.

As at 30th September

During the half year ended 30th September 2017, the Board of Directors of the Company declared an interim dividend of Rs 1.80 per share from and out of

the profits for the said period. In the corresponding period, the interim dividend out of current profits (Rs 1.70 per share) was paid on 19th January 2017 in

the third quarter of the year.

The dividend shown as paid during the half year ended 30th September 2016 (Rs 2.80 per share) constituted the final dividend from the profits of the year

2015/16. The final dividend out of the subsequent year (year ended 31st March 2017) amounting to Rs 3.50 per share was paid on 28th March 2017.

There are no material changes to the contingent liabilities reported in the Annual Report as at 31st March 2017.

HSBC Intl Nom Ltd - SSBT - First State Investments ICVC - Stewart Investors Indian

Subcontinent Fund


Corporate Information

Name of Company Executive Committee

C T Holdings PLC Priya Edirisinghe (Chairman)

Ranjit Page

Registration No Sunil Mendis

PQ 210 Joseph Page

R Selvaskandan

Legal Form

Quoted Public Company with limited liability Incorporated Audit Committee

in Sri Lanka on 29th September 1928 and re-registered under the Priya Edirisinghe (Chairman)

Companies Act No. 7 of 2007. J B L De Silva

Sunil Mendis

Chairman Emeritus A D B Talwatte

Anthony A Page

Remuneration Committee

Board of Directors Louis Page (Chairman)

Louis Page (Chairman) J B L De Silva

Ranjit Page (Deputy Chairman / Managing Director) Priya Edirisinghe

J B L De Silva Sunil Mendis

Priya Edirisinghe

Sunil Mendis Nominations Committee

Mrs. Cecilia Muttukumaru Louis Page (Chairman)

Joseph Page Priya Edirisinghe

R Selvaskandan Sunil Mendis

Dr. A Aravinda Page Ranjit Page

A D B Talwatte

M I Abdul Wahid Related Party Transactions Review Committee

S C Niles (Executive Director) Priya Edirisinghe (Chairman)

J B L De Silva

Company Secretary Sunil Mendis

S L W Dissanayake A D B Talwatte

Registered Office Auditors

No. 08, Sir Chittampalam A Gardiner Mawatha, KPMG, Chartered Accountants

Colombo 02, Sri Lanka

Telephone: +94 11 2431243 Tax Consultants

Email: [email protected] PricewaterhouseCoopers, Chartered Accountants

Fax: +94 11 2447956

Bankers

Postal Address Cargills Bank Limited

PO Box 327, Colombo Commercial Bank of Ceylon PLC

Hatton National Bank PLC

Exchange Listing Sampath Bank PLC

Colombo Stock Exchange Standard Chartered Bank

Nations Trust Bank PLC

C T Holdings PLC

No. 08, Sir Chittampalam A Gardiner Mawatha, Colombo 02.

Tel: +94 11 2431243 Fax: + 94 11 244 7956

Email: [email protected]

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