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)
Other Comprehensive Income
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
Other Comprehensive Income
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
Other Comprehensive Income
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
NOTES TO THE FINANCIAL STATEMENTS
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
NOTES TO THE FINANCIAL STATEMENTS
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
NOTES TO THE FINANCIAL STATEMENTS
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
NOTES TO THE FINANCIAL STATEMENTS
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,
Colombo 03, Sri Lanka.
REGISTRARS
P W Corporate Secretarial (Pvt) ltd.,
No. 3/17, Kynsey Road,
Colombo 08, Sri Lanka.
BANKERS
Commercial Bank of Ceylon PLC
DFCC Bank PLC
Bank of Ceylon
Hatton National Bank PLC