interim financial statements · united motors lanka plc interim financial statements for the year...

For the Year Ended 31 March 2018

INTERIM FINANCIAL STATEMENTS

UNITED MOTORS LANKA PLC

INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Audited Audited Unaudited Unaudited Audited Audited Unaudited UnauditedRe-stated Re-stated

Year Year 3 Months 3 Months Year Year 3 Months 3 Monthsended ended Variance Ended Ended Variance ended ended Variance Ended Ended Variance

31.03.2018 31.03.2017 31.03.2018 31.03.2017 31.03.2018 31.03.2017 31.03.2018 31.03.2017

Revenue 14,716,147 17,925,373 -17.9% 3,390,825 4,327,766 -21.6% 9,035,974 9,637,973 -6.2% 1,871,182 2,379,650 -21.4%

Cost of sales (11,693,030) (14,568,945) -19.7% (2,666,571) (3,531,046) -24.5% (6,586,427) (7,216,966) -8.7% (1,299,326) (1,799,779) -27.8%

Gross profit 3,023,117 3,356,428 -9.9% 724,254 796,720 -9.1% 2,449,547 2,421,007 1.2% 571,856 579,871 -1.4%

Other income 182,693 100,022 82.7% 112,754 54,051 108.6% 909,445 117,381 674.8% 856,722 56,321 1421.1%

Distribution expenses (389,179) (436,336) -10.8% (121,732) (151,913) -19.9% (229,677) (226,625) 1.3% (82,921) (74,823) 10.8%

Administrative and other expenses (1,739,284) (1,460,282) 19.1% (438,606) (301,537) 45.5% (1,521,437) (1,287,392) 18.2% (358,301) (268,975) 33.2%

Profit from operating activities 1,077,347 1,559,832 -30.9% 276,670 397,321 -30.4% 1,607,878 1,024,371 57.0% 987,356 292,394 237.7%

Finance income 58,699 97,868 -40.0% 24,591 10,378 137.0% 159,560 204,488 -22.0% 100,038 64,569 54.9%

Finance cost (407,200) (295,125) 38.0% (87,542) (94,053) -6.9% (99,226) (52,199) 90.1% (12,233) (26,120) -53.2%

Net finance (cost) / income (348,501) (197,257) 76.7% (62,951) (83,675) -24.8% 60,334 152,289 -60.4% 87,805 38,449 128.4%

Change in fair value of investment property - - - - - 111,020 -100.0% 111,020 -100.0%

Share of profit of equity accounted investee (net of income tax) 137,612 76,027 81.0% 20,374 24,324 -16.2% - - - - - -

Profit before income tax expense 866,458 1,438,602 -39.8% 234,093 337,970 -30.7% 1,668,212 1,287,680 29.6% 1,075,161 441,863 143.3%

Income tax expense (197,558) (312,495) -36.8% (17,882) (76,732) -76.7% (211,515) (220,869) -4.2% (38,530) (60,579) -36.4%

Profit for the year / period 668,900 1,126,107 -40.6% 216,211 261,238 -17.2% 1,456,697 1,066,811 36.5% 1,036,631 381,284 171.9%

Other comprehensive income

Items that will never be reclassified to profit or loss

Employee benefit plan actuarial gains / (losses) (11,645) 7,691 (1,921) 7,691 (10,260) 5,596 (2,166) 5,596

Gain from revaluation of land 1,633,673 - - - 1,320,533 - - -

Deferred tax on actuarial gains / (losses)on defined benefit obligation 3,008 (1,880) (49) (1,880) 2,623 (1,262) (2) (1,262)

Equity accounted investee - share of other comprehensive income (2,157) 2,420 (1,048) 2,420 - - - -

Items that are or may be reclassified to profit or loss

Net change in fair value of available for sale financial assets 19,131 2,219 (10,836) (45,564) 11,424 (808) (13,592) (34,713)

Other comprehensive income for the year / period 1,642,010 10,450 (13,854) (37,333) 1,324,320 3,526 (15,760) (30,379)

Total comprehensive income for the year / period 2,310,910 1,136,557 202,357 223,905 2,781,017 1,070,337 1,020,871 350,905

Profit attributable to:

Equity holders of the parent 668,900 1,126,107 216,211 261,238 1,456,697 1,066,811 1,036,631 381,284

Profit for the year / period 668,900 1,126,107 216,211 261,238 1,456,697 1,066,811 1,036,631 381,284

Total comprehensive income attributable to:

Equity holders of the parent 2,310,910 1,136,557 202,357 223,905 2,781,017 1,070,337 1,020,871 350,905

Total comprehensive income for the year / period 2,310,910 1,136,557 202,357 223,905 2,781,017 1,070,337 1,020,871 350,905

Basic earnings per share (Rs.) 6.63 11.16 2.14 2.59 14.44 10.57 10.27 3.78

Notes:

All amounts are in Rs.'000s, unless otherwise stated.

Figures in brackets indicate deductions.

Group Company

1



STATEMENT OF FINANCIAL POSITION

Audited Audited Audited Audited Audited

Re-stated Re-stated

As at 31.03.2018 31.03.2017 31.03.2018 31.03.2017 01.04.2016

Assets

Non-current assets

Property, plant & equipment 7,034,395 5,174,082 6,420,890 4,916,169 4,482,016

Investment property - - 468,500 468,500 357,480

Intangible assets 10,729 11,980 6,390 7,232 921

Investments in subsidiaries - - 247,400 172,400 172,400

Investments in equity accounted investee - 800,431 - 173,545 173,545

Other investments 356,309 672,573 274,163 554,191 614,655

Defined benefit plan 84,081 94,398 80,522 91,101 98,582

Deferred tax assets 12,057 8,729 - - -

Total non-current assets 7,497,571 6,762,193 7,497,864 6,383,138 5,899,599

Current assets

Inventories 6,485,929 7,475,704 3,456,037 4,210,477 2,349,153

Trade and other receivables 1,657,783 1,990,190 917,215 1,015,144 783,486

Amounts due from related parties - 3,687 40,430 31,568 17,998

Current tax receivables 5,854 5,193 - - -

Other investments 87,203 119,673 87,203 119,673 1,282,125

Cash and cash equivalents 1,156,160 566,106 1,045,707 464,495 320,957

Total current assets 9,392,929 10,160,553 5,546,592 5,841,357 4,753,719

Total assets 16,890,500 16,922,746 13,044,456 12,224,495 10,653,318

Equity and liabilities

Equity

Stated capital 336,335 336,335 336,335 336,335 336,335

Capital reserve 4,556,009 2,956,382 4,242,869 2,922,336 2,922,336

Other components of equity 1,415,716 1,396,585 1,442,042 1,430,618 1,431,426

Retained earnings 6,392,067 6,053,067 5,674,334 4,578,426 4,213,584

Total equity attributable to the equity holders of the parent 12,700,127 10,742,369 11,695,580 9,267,715 8,903,681

Non-current liabilities

Employee benefits 203,713 174,435 186,845 161,671 154,070

Deferred tax liabilities 49,077 38,430 51,103 26,811 148

Total non-current liabilities 252,790 212,865 237,948 188,482 154,218

Current liabilities

Interest bearing borrowings 2,718,432 3,965,092 - 1,359,865 -

Trade and other payables 1,016,933 1,693,473 862,150 1,153,897 1,012,017

Amounts due to related parties - - 49,796 42,641 29,280

Current tax liabilities 87,785 190,776 88,524 110,000 386,662

Bank overdrafts 114,433 118,171 110,458 101,895 167,460

Total current liabilities 3,937,583 5,967,512 1,110,928 2,768,298 1,595,419

Total liabilities 4,190,373 6,180,377 1,348,876 2,956,780 1,749,637

Total equity and liabilities 16,890,500 16,922,746 13,044,456 12,224,495 10,653,318

Net assets per share (Rs.) 125.87 106.46 115.91 91.85 88.24

(0.18) 0.43 (0.17) 0.50

0 (0) 0 (1)

Note:


I certify that these interim financial statements are in compliance with the requirements of the Companies Act No.07 of 2007.

Thushara Jayasekara

General Manager - Finance & Planning

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

Sunil G. Wijesinha Chanaka Yatawara

Chairman Group Chief Executive Officer / Executive Director

14-May-2018

Colombo

Group Company

2



STATEMENT OF CHANGES IN EQUITY

Stated Capital Capital Retained Total

Reserve Development Property, General Available for Earnings Equity

Reserve Plant & Equipment Reserves Sale Reserve

Replacement Reserve

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

Group

Balance as at 01.04.2016 336,335 2,956,382 785,400 308,900 466,250 (166,184) 5,625,032 10,312,115

Total comprehensive income for the year

Profit for the year 1,126,107 1,126,107


Employee benefit plan actuarial gains 7,691 7,691

Deferred tax on actuarial losses on defined benefit obligation (1,880) (1,880)

Net change in fair value of available for sale financial assets 2,219 - 2,219

Equity accounted investee - share of OCI 2,420 2,420

Total comprehensive income for the year - - - - - 2,219 1,134,338 1,136,557

Transactions with owners, recognised directly in equity

Distribution to owners of the Company

Final dividend paid 2015 / 2016 (201,801) (201,801)

First interim dividend paid 2016 / 2017 (252,251) (252,251)

Second interim dividend paid 2016 / 2017 (252,251) (252,251)

Balance as at 31.03.2017 336,335 2,956,382 785,400 308,900 466,250 (163,965) 6,053,067 10,742,369


Profit for the year 668,900 668,900


Employee benefit plan actuarial losses (11,645) (11,645)

Deferred tax on actuarial gains on defined benefit obligation 3,008 3,008


Transfer of revaluation reserve on disposal of land of joint venture (34,046) 34,046 -

Gain from revaluation of land 1,633,673 1,633,673

Equity accounted investee - share of OCI (2,157) (2,157)

Total comprehensive income for the year - 1,599,627 - - - 19,131 692,152 2,310,910




Balance as at 31.03.2018 336,335 4,556,009 785,400 308,900 466,250 (144,834) 6,392,067 12,700,127

Notes:



Other Components of Equity

3



STATEMENT OF CHANGES IN EQUITY

Stated Capital Capital Retained Total

Reserve Development Property, General Available for Earnings Equity

Reserve Plant & Equipment Reserves Sale Reserve

Replacement Reserve

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

Company

Balance as at 01.04.2016 as previously reported (note 3) 336,335 2,922,336 785,400 308,900 466,250 (129,124) 4,008,500 8,698,597

Impact of changes in accounting policy 205,084 205,084

Balance as at 01.04.2016 - restated 336,335 2,922,336 785,400 308,900 466,250 (129,124) 4,213,584 8,903,681

-




Employee benefit plan actuarial gains 5,596 5,596

Deferred tax on actuarial gains on defined benefit obligation (1,262) (1,262)

Net change in fair value of available for sale financial assets - - - - - (808) - (808)

Total comprehensive income for the year - - - - - (808) 1,071,145 1,070,337



Final dividend paid 2015 / 2016 (201,801) (201,801)


Second interim dividend paid 2016 / 2017 (252,251) (252,251)

Balance as at 31.03.2017 336,335 2,922,336 785,400 308,900 466,250 (129,932) 4,578,426 9,267,715




Employee benefit plan actuarial losses (10,260) (10,260)

Deferred tax on actuarial gains on defined benefit obligation 2,623 2,623


Gain from revaluation of land 1,320,533 1,320,533

Total comprehensive income for the year - 1,320,533 - - - 11,424 1,449,060 2,781,017




Balance as at 31.03.2018 336,335 4,242,869 785,400 308,900 466,250 (118,508) 5,674,334 11,695,580

Notes:



Other Components of Equity

4



STATEMENT OF CASH FLOWS

For the year ended 31 March 2018 2017 2018 2017

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

Re-stated

Cash flows from operating activities

Profit before income tax expense 866,458 1,438,602 1,668,212 1,287,680

Adjustments for;

Provision for depreciation / amortisation 169,874 134,056 137,304 95,302

Profit on disposal of property, plant & equipment (71,206) (6,016) (23,699) (1,608)

Net gain on disposal of available for sale financial assets (13,038) (6,037) (10,777) (4,253)

Net gain on disposal of financial assets at the fair value through profit or loss (1,917) (4,353) (1,917) (4,353)

Net change in fair value - financial asset at fair value through profit or loss (3,303) 2,865 (3,303) 2,865

Change in fair value of investment property - - - (111,020)

Interest expense 406,607 292,236 98,633 49,310

Interest income (13,535) (48,609) (35,268) (45,674)

Dividend income (18,152) (36,302) (14,085) (30,503)

Dividend received from subsidiary - - (76,789) (93,441)

Dividend received from equity accounted investee - - (15,750) (25,988)

Impairment of trade receivables and losses on warranty claims 29,200 124 18,214 2,857

Provision for employee benefit obligations 40,924 34,852 36,466 31,238

Expected return on plan asset (11,269) (10,801) (10,857) (10,263)

Share of profits of equity accounted investee (137,612) (76,027) - -

Unrealised profit on purchase of goods from equity accounted investee 110 - - -

Withholding tax on dividend received from equity accounted investee 1,750 2,888 - -

Provision for slow moving / obsolete inventories 64,094 50,667 32,384 26,681

Profit on disposal of joint venture (82,078) - (826,455) -

Unrealised profit on sale of goods to equity accounted investee 424 - - -

Operating profit before working capital changes 1,227,331 1,768,145 972,313 1,168,830

Decrease / (increase) in inventories 925,681 (2,099,737) 722,056 (1,888,005)

Decrease / (increase) in trade and other receivables 303,207 (491,879) 79,715 (234,515)

Decrease / (Increase) in amounts due from related parties 3,687 (3,067) (8,862) (13,570)

(Decrease) / Increase in amounts due to related parties - (361) 7,155 13,361

(Decrease) / increase in trade and other payables (669,558) 369,528 (284,764) 141,880

Cash generated from / (used in) operations 1,790,348 (457,371) 1,487,613 (812,019)

Interest paid (410,785) (288,317) (100,640) (47,303)

Income tax paid (290,883) (513,883) (206,076) (472,130)

Contribution paid and received from investment plan (net) (1,706) (768) (116) (297)

Net cash generated from / (used in) operating activities 1,086,974 (1,260,339) 1,180,781 (1,331,749)

Cash flows from investing activities

Proceeds from disposal of shares 386,124 65,055 339,919 57,709

Proceeds from disposal of unit trust investments - 1,170,140 - 1,170,140

Proceeds from disposal of equity accounted investee 1,000,000 - 1,000,000 -

Acquisitions of property, plant & equipment and intangible assets (411,589) (571,546) (336,906) (535,768)

Proceeds from disposal of property, plant & equipment 80,480 9,097 32,973 1,610

Investment in subsidiary - - (75,000) -

Interest received 13,535 48,609 35,268 45,674

Dividend received from equity accounted investee 15,750 25,988 15,750 25,988

Dividend received 18,152 36,302 90,874 123,944

Net cash generated from investing activities 1,102,452 783,645 1,102,878 889,297

Cash flows from financing activities

Dividend paid (353,152) (706,303) (353,152) (706,303)

Loans obtained 48,077,602 18,166,142 19,276,195 9,135,259

Loans paid (49,320,084) (16,840,253) (20,634,053) (7,777,401)

Net cash (used in) / generated from financing activities (1,595,634) 619,586 (1,711,010) 651,555

Net increase in cash & cash equivalents 593,792 142,892 572,649 209,103

Cash & cash equivalents at the beginning of the year 447,935 305,043 362,600 153,497

Cash and cash equivalents at end of the year 1,041,727 447,935 935,249 362,600

31.03.2018 31.03.2017 31.03.2018 31.03.2017

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

Cash and bank balances 475,866 526,398 365,413 430,490

Short term deposits 680,294 39,708 680,294 34,005

1,156,160 566,106 1,045,707 464,495

Bank overdrafts (114,433) (118,171) (110,458) (101,895)

Total cash and cash equivalents 1,041,727 447,935 935,249 362,600

Notes:



Group Company

Group Company

5



NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. Reporting entity

2. Interim consolidated financial statements

3. Basis of preparation

Change in accounting policy

31.03.2017 01.04.2016

Rs.'000s Rs.'000s

As previously reported 357,480 150,350

Fair value adjustment due to change in accounting policy 111,020 207,130

As restated 468,500 357,480

4. Disposal of investment in equity accounted investee

4.1 Reconciliation of investments in equity accounted investee

Reconciliation of the carrying amount of the equity accounted investee is as follows;

28.03.2018 31.03.2017

Rs.'000 Rs.'000

Balance at the beginning of the year 800,431 750,853

Profit for the year recognized in statement of profit or loss 137,612 76,027

Dividend received (17,500) (28,875)

Elimination of unrealized profit on downstream sales (354) 6

Other comprehensive income (2,157) 2,420

918,032 800,431

4.2 Summary of financial information of equity accounted investee

28.03.2018 31.03.2017

Rs.'000 Rs.'000

Current assets 5,026,994 5,231,767

Non current assets 61,701 62,920

Current liabilities (3,242,881) (3,695,126)

Non current liabilities (34,101) (23,789)

Net assets (100%) 1,811,713 1,575,772

Group's share of net assets (50%) 905,857 787,886

Elimination of Unrealized profits (370) -

Goodwill 12,545 12,545

Carrying amount of interest in equity accounted investee 918,032 800,431

Disposal of investment in equity accounted investee (918,032) -

- 800,431

Group

Group’s share of net assets of equity accounted investee as at the date of

divestment / year end

UML disposed its entire shareholding amounting to 17,500,000 shares representing 50% of the stated capital of the investee for a total consideration of Rs.1 billion.

United Motors Lanka PLC (the "Company"), is a Public Quoted Company incorporated on 9 May 1989 and domiciled in Sri Lanka. The registered office and the principal

place of business of the Company are located at No.100, Hyde Park Corner, Colombo 02.

The ultimate parent Company - RIL Property PLC holds 51% of the issued shares of the Company.

The consolidated interim financial statements of the Group as at and for the year ended 31 March 2018 comprise the Company and its subsidiaries and the Group's interests

in jointly controlled entities up to the date of divestment. All the group entities are limited liability companies, incorporated and domiciled in Sri Lanka.

The Company is primarily involved in distribution of brand new Mitsubishi and Fuso vehicles, spare parts, lubricants, after sales services and related services and other

companies in the Group are engaged in distribution of motor bikes, vehicles of other brands, spare parts, tyres, lubricants and assembling of vehicles.

The interim financial statements of the Company and the Group have been prepared based on the Sri Lanka Accounting Standards SLFRS/LKAS and consistently applied

the accounting policies as stated in the most recent annual report for the year ended 31 March 2017 to all periods presented in the Group financial statements except for the

following:

Subsequent to the acquisition of 51% of ordinary voting shares by RIL Property PLC of United Motors Lanka PLC (UML), UML decided to change its accounting policy in

respect of Investment Property from cost model to fair value model to be in line with the policies of the parent entity. The effects of such policy change have been applied

retrospectively in accordance with LKAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors.

The deferred tax liability already reported has been restated by Rs. 2,209,133 ( 01.04.2016 - Rs. 2,045,814 and 31.03.2017 - Rs. 163,319) as a result of fair value

adjustment arising from investment property.

United Motors Lanka PLC rented part of the land and building to its subsidiaries / affiliates. The building held by UML Property Developments Limited (UMPDL) is rented to

United Motors Lanka PLC. Accordingly, investment property in the books of UML and UMPDL do not qualify as an investment property in the consolidated financial

statements and the prior year adjustments are reflected only in the entity financial statements.

These interim financial statements have been prepared in compliance with the requirements of the Sri Lanka Accounting Standard - LKAS 34 on "Interim Financial

Reporting" and should be read in conjunction with the annual financial statements for the year ended 31 March 2017.

The presentation and classification of the consolidated financial statements of the previous periods have been amended where relevant, for better presentation and to be

comparable with those of current period.

United Motors Lanka PLC divested its entire investment in joint venture, TVS Lanka (Pvt) Ltd, pursuant to the share purchase agreement (SPA) entered into between the

Company (UML) and TV Sundaram Iyengar & Sons (Pvt) Ltd India, on 28 March 2018.

6



NOTES TO THE INTERIM FINANCIAL STATEMENTS (contd.)

4.3 Profit on disposal of joint venture

Group Company

Rs.'000 Rs.'000

Total consideration received 1,000,000 1,000,000

Investment in joint venture - (173,545)

Group's share of net assets recognised up to the date of divestment (918,032) -

110 -

Profit on disposal of investment in joint venture 82,078 826,455

5. Approval of financial statements

6. Revaluation of Land

7. Operating segments

The business segments of the Group are highlighted in the table below:

Reportable segment

Spare parts

Vehicles

Repairs & services

Equipment & machinery

Tyres

Lubricant & other services

8. Contingencies, capital and other commitments

9. Events after the reporting period

Dividends on ordinary shares

10. Related party transactions

10.1 Transactions with the parent company

Year Year

ended ended

31.03.2018 31.03.2017

Rs.'000s Rs.'000s

Repairs & services provided 1,285 520

Sale of spare parts 52 -

Services obtained - 68

Sale of brand new passenger vehicles, commercial

vehicles, special purpose vehicles, pre-owned

passenger vehicles, and motor bikes.

Repairs and servicing of vehicles

Sale of heavy equipment & machinery

Sale of tyres

Sale of lubricant & hiring of vehicles

The Group / Company has capital commitments amounting to Rs. 265,984,615 in relation to ERP system implementation (SAP) out of which the Company has spent

Rs.109,149,643 up to 31 March 2018.

There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the annual report 2016 / 2017 other than what has

been disclosed above.

After satisfying the solvency test, in accordance with Section 57 of the Companies Act, No.07 of 2007, the Board of Directors recommended a final dividend of Rs. 1.50 per

share for the year ended 31 March 2018 amounting to Rs. 151,350,939 which is to be approved at the forth coming Annual General Meeting. In accordance with LKAS 10 -

“Events after the reporting period” this dividend was not recognised as a liability as at 31 March 2018.

Subsequent to the reporting date, no circumstances have arisen, which would require adjustments or disclosures in the financial statements other than those disclosed

above.

Transaction type

Sale of spare parts

28.03.2018

Reversal of remaining unrealised profits

These consolidated interim financial statements for the year ended 31 March 2018 were authorized for issue by the Board of Directors on 14 May 2018.

Freehold land is initially recognized at cost at the time of acquisition and subsequently measured at fair value at the next valuation. Freehold land of the Group is revalued to

ensure that the carrying amounts do not differ materially from the fair values at the reporting date. The last revaluation was performed as at 31 March 2015. Considering the

significant increase in the fair value of land, United Motors Lanka PLC revalued its land as at 8 November 2017. The effect of such fair value adjustment is incorporated in

these consolidated financial statements.

As per the Inland Revenue Act No 24 of 2017, which came into effect from 1 April 2018, capital gains on realization of investment assets are taxed at the rate of 10%. The

company identified land portfolio of the company as an asset held as part of an investment due to the nature of business and tax opinion received from our tax consultants.

According to the transitional provisions, assets acquired prior to 30.09.2017, the cost of the asset is deemed to be the market value of such asset as at 30.09.2017. Since

the company revalued land on 8th November 2017 and there is no further increases recognized in financial statements thereafter, deferred tax has not been provided in the

financial statements for the year ended 31.3.2018.

An operating segment is a distinguishable component of the Group / Company that is engaged either in providing products or services (business segment), or in providing

products or services within a particular economic environment (geographical segment), which is subject to risk and rewards that are different from those of other segments.

Segmentation has been determined based on the Group's management and internal reporting structure. Segment Information is based on the primary format representing

the industry segments of the Company and the Group. The Group has six reportable segments whilst the Company has four.

Nature of business

7




10.2 Transactions with subsidiaries

Year Year

ended ended

31.03.2018 31.03.2017Rs.'000s Rs.'000s

Sale of goods 29,034 4,770

Purchase of goods 17,202 56,991

Repairs and services provided 113,734 93,894

Expenses incurred 51,742 46,836

Reimbursement of expenses 2,825 2,462

Hiring income received 1,514 1,668

Hiring rentals paid for vehicles 34,679 50,229

Interest received 24,448 750

Loans granted 7,036,000 1,096,795

Loan settlements 7,036,000 1,096,795

Rentals paid for premises occupied 90,949 82,681

Indent commission paid - 3,370

Rentals received for premises occupied 30,620 23,869

10.3 Transactions with equity accounted investee

Year Year

ended ended

31.03.2018 31.03.2017Rs.'000s Rs.'000s

Sale of goods 13,980 -

Purchase of goods 1,740 448

Repairs & services provided 138 721

Repairs & services obtained 437 432

Expenses incurred 5,824 7,630

Income on legal services 427 27

Reimbursement of expenses 288 -

Rentals received for premises occupied 1,826 1,660

10.4 Transactions with other related entities of parent company

Transaction type Year Year

ended ended

31.03.2018 31.03.2017

Rs.'000s Rs.'000s

Foodbuzz (Pvt) Ltd Repairs & services

provided440 280

Sale of vehicle 3,800 3,925

Services obtained - 70

10.5

10.6

10.7 Non-recurrent related party transactions

The Company entered into the non-recurrent related party transactions for the year ended 31 March 2018 as follows.

Non-recurrent related party transactions that require immediate market disclosure

Related party Transaction Transaction date Transaction

value Rs.'000

Aggregate value

Rs.'000

The rationale

for entering

into the

Terms of

transaction

As a % of equity As a % of

total assets

TV Sundaram Iyengar & Sons (Pvt) Ltd India Pursuant to the share

purchase agreement

entered into between

UML & TV Sundram

Iyengar & Sons (Pvt)

Ltd India, UML

disposed its entire

shareholding in TVS

Lanka (Pvt) Ltd.

28th

March 2018 1,000,000 1,000,000 9% 8% To focus

more on the

four wheeler

businesses

and other new

ventures and

to be in line

with overall

group

strategy.

To dispose 17.5

Mn shares at a

total

consideration of

Rs.1 Billion.

11. Share information

11.1 Stated capital

Stated capital is represented by number of shares in issue as given below:

As at 31.03.2018 31.03.2017

Ordinary shares 100,900,626 100,900,626

11.2 Public shareholding

As at 31.03.2018 31.03.2017

Number of public shareholders 3,897 4,039

Number of shares held by the public 26,862,689 27,095,541

Percentage of shares held by the public 26.62% 26.85%

Transaction type

Company

Related company receivables and payables are unsecured, interest free and have no fixed repayment terms.

The subsidiary companies utilise certain facilities of the Company free of charge and part of the accounting, IT and administrative functions of the subsidiary companies are

also performed by the Company for which no charges are made.

Aggregate value for non

recurrent RPTs entered into

during the financial year

Transaction type

8




11.3 Directors' shareholding

The number of shares held by the Board of Directors are as follows:

As at 31.03.2018 31.03.2017

Mr. Sunil G. Wijesinha - -

Mr. Chanaka Yatawara 1,275,885 1,270,385

Mr. Ananda Atukorala 3,000 3,000

Ms. Hiroshini Fernando - -

Mr. Ramesh Yaseen 10,620 10,620

Prof. Malik Ranasinghe - -

Mr. Stuart Chapman - -

Mr. Hiroyasu Inoue - -

Mr. Aashiq Lafir (Resigned w.e.f. 31.03.2018) 14,224 14,224

1,303,729 1,298,229

11.4 Twenty largest shareholders of the Company are as follows:

As at

Number of Number of

shares % shares %

R I L Property PLC 51,459,320 51.00 - -

Ms. R. R. Yaseen 10,767,210 10.67 10,767,210 10.67

Mr. M. A. Yaseen 10,521,402 10.43 61,750,266 61.20

Mrs. S. M. Chrysostom 6,945,471 6.88 6,945,471 6.88

Mitsubishi Motors Corporation 4,937,142 4.89 4,937,142 4.89

Sterling Holdings (Private) Limited 2,690,441 2.67 - -

Mr. Chanaka Yatawara 1,275,885 1.26 1,270,385 1.26

Capital Development & Investment Company PLC - A/C No. 2 604,209 0.60 604,209 0.60

Bank of Ceylon Account No. 1 404,478 0.40 404,478 0.40

Mr. A. M. Weerasinghe 301,880 0.30 301,880 0.30

Deutsche Bank AG as Trustee to Candor Opportunities Fund 250,000 0.25 250,000 0.25

Mr. S. D. Yaseen 243,300 0.24 243,300 0.24

Seylan Bank PLC / Lasantha Chandika Ranaweera Pathirana 203,751 0.20 195,037 0.19

Mr. J. A. Yaseen 156,177 0.15 156,177 0.15

Mr. P. Rathnayaka 156,000 0.15 156,000 0.15

Mercantile Investments and Finance PLC 150,000 0.15 150,000 0.15

Akbar Brothers (Pvt) Ltd A/C No. 1 136,648 0.14 136,648 0.14

Andaradeniya Estate (Pvt) Limited 125,000 0.12 - -

Mr. M. Anndreino Yaseen 119,430 0.12 - -

Mr. V. A. Yaseen 119,427 0.12 - -

*Others (shareholders under 20 largest shareholders as at 31 March 2017) - - 1,760,121 1.73

* Comparative shareholding as at 31 March 2017 of the twenty largest shareholders as at 31 March 2018.Please refer 11.4.1 for details

11.4.1 Shareholders Included in the Twenty Largest Shareholding as at 31 March 2017

Number of

shares %

Mr. H.A. Van Starrex 881,919 0.87

Deutsche Bank AG as Trustee to Candor Growth Fund 346,594 0.34

Deutsche Bank AG as Trustee to Amana Candor Sharia Fund 225,000 0.22

Waldock Mackenzie Ltd / Hi -Line Trading (Pvt) Ltd 166,371 0.16

Bank of Ceylon A/C NDB Wealth Growth Fund 140,237 0.14

1,760,121 1.73

11.5 Earnings per share (EPS)

11.6 Net assets per share

Net assets per share has been calculated for all the periods based on the number of shares in issue as at the current period end.

11.7 Market price per share

For the quarter ended 31 March 2018 2017

Rs. Rs.

Highest price 80.40 89.00

Lowest price 74.00 76.10

Closing price 76.00 78.00

31.03.2018 31.03.2017

31.03.2017

Earnings per share has been calculated for all the periods based on the number of shares in issue as at the current period end.

9



SEGMENT INFORMATION

Group

In Rs.'000 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited

Revenue

External - Sales 1,640,442 1,765,449 11,107,286 14,283,056 - - 43,020 - 206,714 241,113 820,979 837,920 13,818,441 17,127,538

- Services / commission - - 174,102 48,239 723,604 749,596 - - - - - - 897,706 797,835

Total revenue 1,640,442 1,765,449 11,281,388 14,331,295 723,604 749,596 43,020 - 206,714 241,113 820,979 837,920 14,716,147 17,925,373

Segment results 630,592 654,979 810,766 1,071,877 30,784 128,917 (13,719) - 23,026 33,634 82,738 141,044 1,564,187 2,030,451

Unallocated income 182,693 100,022

Unallocated expenses (669,533) (570,641)

Profit from operations before finance cost 1,077,347 1,559,832

Net finance cost (348,501) (197,257)

Profit from operations 728,846 1,362,575

Share of profit of equity accounted investee (net of income tax) 137,612 76,027

Profit before income tax expense 866,458 1,438,602

Income tax expenses (197,558) (312,495)

Profit from ordinary activities 668,900 1,126,107

Employee benefit plan actuarial gains / (losses) (11,645) 7,691

Gain from revaluation of land 1,633,673 -

Deferred tax on actuarial gains / losses on defined benefit obligation 3,008 (1,880)

Equity accounted investee - share of OCI (2,157) 2,420

Net change in fair value of available for sale financial assets 19,131 2,219

Total comprehensive income attributable to equity holders of the parent 2,310,910 1,136,557

Segment assets 1,771,719 2,329,250 10,946,665 10,039,129 524,939 399,644 94,251 - 220,078 239,228 861,866 687,538 14,419,518 13,694,789

Unallocated assets 2,470,982 3,227,957

Total assets 1,771,719 2,329,250 10,946,665 10,039,129 524,939 399,644 94,251 - 220,078 239,228 861,866 687,538 16,890,500 16,922,746

Segment liabilities 43,267 129,748 372,287 444,332 5,885 8,000 8,131 - 6,267 9,237 7,676 26,846 443,513 618,163

Unallocated liabilities 3,746,860 5,562,214

Total liabilities 43,267 129,748 372,287 444,332 5,885 8,000 8,131 - 6,267 9,237 7,676 26,846 4,190,373 6,180,377

Segment capital expenditure - allocated 45,881 56,290 315,524 456,950 20,238 23,901 1,203 - 5,781 7,688 22,962 26,717 411,589 571,546

Depreciation & amortisation - allocated 18,936 13,203 130,225 107,177 8,353 5,606 497 - 2,386 1,803 9,477 6,267 169,874 134,056

Non cash expenses / (income) 27,804 28,522 53,232 23,054 2,118 (153) - - 2,214 (2,800) 7,925 2,168 93,294 50,791

Notes:



TotalSpare parts Vehicles Repairs & services Equipment & machinery Tyres Lubricant & other services

10



SEGMENT INFORMATION

Company

In Rs.'000 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited

Revenue

External - Sales 1,627,269 1,742,062 5,614,521 6,213,471 - - 822,728 842,689 8,064,518 8,798,222

- Services / commission - - 175,073 44,598 794,898 793,692 1,485 1,461 971,456 839,751

Total revenue 1,627,269 1,742,062 5,789,594 6,258,069 794,898 793,692 824,213 844,150 9,035,974 9,637,973

Segment results 627,621 651,548 615,595 548,120 102,081 173,014 91,967 168,296 1,437,264 1,540,978

Unallocated income 909,445 117,381

Unallocated expenses (738,831) (633,989)

Profit from operations before finance cost 1,607,878 1,024,370

Net finance income 60,334 152,289

Change in fair value of investment property - 111,020

Profit before income tax expense 1,668,212 1,287,679

Income tax expenses (211,515) (220,869)

Profit from ordinary activities 1,456,697 1,066,810

Employee benefit plan actuarial (losses) / gains (10,260) 5,596

Gain from revaluation of land 1,320,533 -

Deferred tax on actuarial gains / (losses) on defined benefit obligation 2,623 (1,262)

Net change in fair value of available for sale financial assets 11,424 (808)

Total comprehensive income attributable to equity holders of the parent 2,781,017 1,070,336

Segment assets 2,031,728 1,539,371 7,042,724 6,861,696 524,939 399,644 1,097,992 876,173 10,697,383 9,676,884

Unallocated assets 2,347,073 2,547,611

Total assets 2,031,728 1,539,371 7,042,724 6,861,696 524,939 399,644 1,097,992 876,173 13,044,456 12,224,495

Segment liabilities 42,205 99,573 299,807 388,168 5,885 8,000 7,676 26,846 355,573 522,587

Unallocated liabilities 993,303 2,434,193

Total liabilities 42,205 99,573 299,807 388,168 5,885 8,000 7,676 26,846 1,348,876 2,956,780

Segment capital expenditure - allocated 60,673 96,840 215,865 347,881 29,638 44,121 30,730 46,926 336,906 535,768

Depreciation & amortisation - allocated 24,727 17,225 87,974 61,880 12,079 7,848 12,524 8,349 137,304 95,302

Non cash expenses / (income) 27,999 27,814 13,119 732 2,118 (153) 7,362 1,145 50,598 29,538

Notes:



Lubricant & other services TotalSpare parts Vehicles Repairs & services

11

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