30th september 2020...ms. richa singh debgupta dr.prasad ariyawansa ( resigned on 17th july 2020 )...

The Lanka HospitalsC O R P O R A T I O N PLC (PQ 180)

PROVISIONAL CONSOLIDATED FINANCIAL

STATEMENTS

FOR THE QUARTER ENDED

30th September 2020

Principal Place of Business & Registered Office

Mr. Ashish BHATIA

Ms. Richa Singh DEBGUPTA

Dr.Prasad ARIYAWANSA ( Resigned on 17th July 2020 )

Ms.Roshini CABRAAL

Dr.Ravindra RUBERU

Ms.Lakshmi SANGAKKARA

Mr. Mayura FERNANDO

Mr. Kushan D ALWIS PC

Dr. Kanishka Karunaratne

Tel: +94 11 5430000 Fax: +94 11 4511199

E-mail: [email protected]

Dr.Bandula WIJESIRIWARDHANA - Chairman

Mr. Anurag KALRA - ( Alternate Director to Mr. Ashish BHATIA )

Mr. Nadun FERNANDO

Ms.Dayakanthi ABEYRATHNE

Mr. Rajiv PURI (Alternate Director to Ms. Richa Singh DEBGUPTA )

Web: www.lankahospitals.com

No. 578, Elvitigala Mawatha, Narahenpita, Colombo 05

THE LANKA HOSPITALS CORPORATION PLC

Provisional Consolidated Financial Statements

For the Quarter ended

30th September 2020

Board of Directors

THE LANKA HOSPITALS CORPORATION PLCProvisional Consolidated Financial Statements for the Quarter ended 30th September 2020

Statement of Financial Position

As at, 30th Sep 2020 31st Dec 2019 30th Sep 2020 31st Dec 2019Audited Audited

Rs. Rs. Rs. Rs.

ASSETS

Non Current Assets

Property, Plant & Equipment 4,529,515,023 4,374,999,568 4,136,914,382 3,975,951,582

Right of Use Assets 546,446,988 638,680,846 455,540,683 529,133,161

Intangible Assets 60,872,336 75,837,895 44,593,412 55,021,077

Investment Property - - 135,000,000 135,000,000

Investment in Subsidiary - - 414,000,020 414,000,020

Total Non Current Assets 5,136,834,347 5,089,518,308 5,186,048,497 5,109,105,840

Current Assets

Inventories 539,566,480 412,871,966 422,595,446 321,847,911

Trade & Other Receivables 658,565,701 914,910,555 576,392,475 809,976,006

Amounts due from Related Parties 1,703,150 5,989,336 152,627,920 119,664,683

Economic Service Charge Recoverable 7,933,763 - 7,933,763 -

Other Financial Assets 2,745,525,000 2,482,398,553 2,420,525,000 2,222,398,553

Cash and Cash Equivalents 427,309,063 521,701,786 362,928,550 318,424,161

Total Current Assets 4,380,603,157 4,337,872,196 3,943,003,154 3,792,311,314 Total Assets 9,517,437,503 9,427,390,504 9,129,051,651 8,901,417,154

EQUITY AND LIABILITIES

Equity

Stated Capital 2,671,543,090 2,671,543,090 2,671,543,090 2,671,543,090

Revaluation Reserve 982,213,369 982,213,369 918,291,662 918,291,662

Retained Earnings 3,168,591,601 2,975,801,877 2,485,358,294 2,464,218,824

Total Equity 6,822,348,060 6,629,558,336 6,075,193,046 6,054,053,576

Non Current Liabilities

Employee Benefit Obligations 272,511,167 245,319,808 242,881,935 218,983,833

Deferred Tax Liabilities 1,110,254,228 1,101,754,228 1,056,568,491 1,048,068,491

Lease Liability 204,230,588 300,363,987 128,825,007 212,319,907

Total Non Current Liabilities 1,586,995,984 1,647,438,023 1,428,275,433 1,479,372,231

Current Liabilities

Amounts due to Related Parties 4,769,075 6,360,674 4,769,075 4,769,075

Trade & Other Payables 760,829,169 748,060,109 1,348,299,011 1,010,989,544

Lease Liability 70,251,963 76,947,758 52,955,350 57,202,253

Income Tax Payable 35,463,102 56,909,372 34,610,601 54,344,839

Bank Overdraft 236,780,149 262,116,232 184,949,135 240,685,635

Total Current Liabilities 1,108,093,459 1,150,394,145 1,625,583,172 1,367,991,347

Total Liabilities 2,695,089,443 2,797,832,168 3,053,858,606 2,847,363,578 Total Equity & Liabilities 9,517,437,503 9,427,390,504 9,129,051,651 8,901,417,154

The figures as at 30th Sep 2020 are provisional and subject to audit.

I certify that the consolidated financial statements comply with the requirements of the Companies Act No. 07 of 2007.

Group Chief Financial Officer

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

Approved and signed for and on behalf of the Board.

Chairman

Date 12th November 2020

Colombo

(Amounts in brackets indicate deductions)

Group Company

Director


Statement of Comprehensive Income

For the 09 months ended, 30th Sep 2020 30th Sep 2019 30th Sep 2020 30th Sep 2019

Rs. Rs. Rs. Rs.

Revenue from contract with customers 4,938,975,421 5,539,569,941 3,934,877,430 4,513,486,432

Cost of services (2,875,493,033) (3,065,259,847) (2,462,805,333) (2,637,368,950)

Gross profit 2,063,482,389 2,474,310,093 1,472,072,097 1,876,117,481

Other operating income 47,929,841 53,061,397 53,320,391 182,099,371

Administrative expenses (1,517,305,560) (1,521,668,525) (1,140,462,283) (1,165,499,392)

Other operating expenses (511,964,341) (530,473,721) (465,682,130) (461,177,721)

Profit from operations 82,142,330 475,229,244 (80,751,924) 431,539,739

Finance income 190,983,587 167,550,402 168,290,901 123,767,355

Finance Cost (28,204,180) (27,074,211) (19,688,407) (21,005,675)

Profit before tax 244,921,737 615,705,435 67,850,570 534,301,420

Income tax expense (52,132,013) (135,209,382) (46,711,100) (122,938,722)

Profit for the period 192,789,724 480,496,053 21,139,470 411,362,698

Other comprehensive Income - - - -

Other comprehensive income net of tax - - - -

Total comprehensive income for the period 192,789,724 480,496,053 21,139,470 411,362,698

Basic earnings per share 0.86 2.15 0.09 1.84

Dividend per share - 1.00 - 1.00


Group Company


Statement of Comprehensive Income

For the 03 months ended, 30th Sep 2020 30th Sep 2019 30th Sep 2020 30th Sep 2019

Rs. Rs. Rs. Rs.

Revenue from contract with customers 1,997,547,671 1,949,035,954 1,555,961,084 1,586,752,505

Cost of services (1,165,341,853) (1,074,437,555) (985,410,811) (926,183,069)

Gross profit 832,205,818 874,598,399 570,550,273 660,569,436

Other operating income 16,272,616 18,597,793 18,069,466 144,368,767

Administrative expenses (506,756,806) (537,311,815) (371,819,931) (415,695,728)

Other operating expenses (184,321,191) (181,880,711) (168,145,977) (159,016,140)

Profit from operations 157,400,438 174,003,667 48,653,832 230,226,335

Finance income 39,308,683 115,039,258 33,525,049 98,351,380

Finance Cost (9,198,089) (8,964,015) (6,301,189) (6,737,468)


Income tax expense (18,667,149) (53,689,754) (17,268,466) (49,015,802)

Profit for the period 168,843,883 226,389,156 58,609,226 272,824,446

Other comprehensive Income - - - -

Other comprehensive income net of tax - - - -

Total comprehensive income for the period 168,843,883 226,389,156 58,609,226 272,824,446

Basic earnings per share 0.75 1.01 0.26 1.22

Dividend per share - - - -


Group Company

THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 30th September 2020

Company Statement of Changes in Equity

Stated Revaluation Retained Total

capital reserve earning / (loss)

Balance as at 1st January 2019 2,671,543,090 962,019,491 2,404,221,191 6,037,783,772

Profit for the period (January 2019 - September 2019) - - 411,362,698 411,362,698

Other comprehensive income for the year - - - -

Dividend Paid - - (223,732,169) (223,732,169)

Balance as at 30th September 2019 2,671,543,090 962,019,491 2,591,851,719 6,225,414,300

Balance as at 1st January 2020 2,671,543,090 918,291,662 2,464,218,824 6,054,053,576




Group Statement of Changes in Equity

Stated Revaluation Retained Total

capital reserve earning / (loss)

Balance as at 1st January 2019 2,671,543,090 1,028,709,128 2,754,511,426 6,454,763,644



Dividend Paid - - (223,732,169) (223,732,169)

Balance as at 30th September 2019 2,671,543,090 1,028,709,128 3,011,275,310 6,711,527,529

Balance as at 1 January 2020 2,671,543,090 982,213,369 2,975,801,877 6,629,558,336






Cash Flow Statement

Cash flow from operating activities 30th Sep 2020 30th Sep 2019 30th Sep 2020 30th Sep 2019

Rs. Rs. Rs. Rs.


Adjustments for :

Interest income (149,306,143) (174,273,112) (126,719,007) (130,458,819)

Depreciation on property, plant and equipment 322,632,542 307,713,022 284,163,408 275,975,808

Amortisation of intangible assets 17,105,137 17,339,493 10,887,663 11,063,144

Provision for defined benefit obligation 40,215,132 26,231,939 36,000,000 22,400,000

Provision for expired inventories - 328,713 - 328,713

Dividend Income - - - (124,200,006)

Provision for impairment of trade receivable 17,582,522 10,120,325 17,582,522 10,120,325

Amortisation of lease assets 55,135,713 52,762,423 33,752,294 38,110,977

Interest cost - Lease assets 28,204,180 27,074,211 19,688,407 21,005,675

Gain on disposal of property, plant & equipment & ROU 578,660 - 578,660 -

Operating profit before working capital changes 577,069,480 883,002,449 343,784,516 658,647,238

(Increase) / decrease in inventories (126,694,514) (29,905,864) (100,747,534) (36,576,018)

(Increase) / decrease in trade and other receivables 201,939,057 (54,612,488) 204,336,711 (44,308,508)

(Increase) / decrease in amounts due from related company 4,286,186 1,919,050 (32,963,238) (33,587,510)

Increase / (decrease) in amounts due to related company (1,591,599) (1,591,698) - -

Increase / (decrease) in trade and other payables 12,769,061 (102,115,703) 337,309,467 (172,132,569)

Cash generated from operating activities 667,777,671 696,695,747 751,719,922 372,042,634

Income Tax paid (65,078,284) (153,031,541) (57,945,339) (148,594,179)

Interest cost paid (30,224,955) (27,074,211) (19,688,407) (21,005,675)

Defined benefit obligation paid (13,023,771) (13,754,623) (12,101,897) (11,684,206)

Net cash flow from operating activities 559,450,661 502,835,373 661,984,279 190,758,575

Cash flow from investing activities

Purchase of property, plant and equipment (484,443,884) (207,078,925) (452,422,092) (175,695,409)

Purchase of Intangible assets (2,139,581) (1,811,229) (460,000) (977,343)

Proceeds from disposal of property, plant & equipment 6,948,583 - 6,948,583 -

Lease paid (64,372,872) (57,813,171) (48,132,976) (47,334,856)

Interest income Received 178,626,899 147,469,169 130,449,542 137,278,493

Dividend income Received - - - 124,200,006

(Investment)/withdrawal in other financial assets (263,126,446) (64,722,459) (198,126,446) 50,277,541

Net cash flow from / (used in) investing activities (628,507,301) (183,956,614) (561,743,389) 87,748,433

Cash flow from financing activities

Dividend paid - (223,732,169) - (223,732,169)

Net cash flow from / (used in) financing activities - (223,732,169) - (223,732,169)

Net increase in cash and cash equivalents (69,056,641) 95,146,590 100,240,890 54,774,839

Cash and cash equivalents at the beginning of the year 259,585,553 43,687,772 77,738,525 47,976,166

Cash and cash equivalents at the end of the year (Note A) 190,528,913 138,834,362 177,979,416 102,751,005

Note A

Cash & Cash Equivalents at the end of the Period

Cash & Cash Equivalents 427,309,063 494,871,138 362,928,550 458,787,781

Bank Overdraft (236,780,149) (356,036,776) (184,949,135) (356,036,776)

190,528,913 138,834,362 177,979,416 102,751,005


Group Company

9 months ended 9 months ended


Provisional Consolidated Financial Statements for the Quarter ended 30th September 2020

1). Basis of preparation of the Interim Financial Statements

Figures for the nine months are provisional and subject to audit.

2). Comparative figures

3). Contingencies , Capital and Other commitments

4). Public Shareholding

Public shareholding percentage as at 30th September 2020 - 20%

Number of public shares as at 30th September 2020 - 44,749,303Number of public shareholders as at 30th September 2020 - 7,611Adjusted Floated Market Capitalization Rs. 1,968,969,332

5). Event After the Reporting Period

6). Revaluation of Assets

7). Investment in Subsidiary

8). Investment Property

The Float adjusted market capitalization of the Company falls under Option 5 of Rule 7.13.1 (a), of the Listing Rules of the

Colombo Stock Exchange and the Company has complied with the minimum public holding requirement applicable under the

said option.

These interim financial statements have been prepared in accordance with Sri Lanka Accounting Standard LKAS 34 - Interim

Financial Reporting. These interim financial statements should be read in conjunction with the annual audited financial

statements for the year ended 31 December 2019.

Further, provisions of the Companies Act No 7 of 2007 have been considered in preparing the interim financial statements of

the Company.

Latest Financial statements have been audited for the period ended 31st December 2019.

The presentation and classification of the financial statements of the previous period have been amended, where relevant, for

better presentation and to be comparable with those of the current period.

The buildings of the Company / Group were revalued as at 31 December 2017 by Messrs A.A.M Fathihu (FIV) chartered valuer.

Such assets were valued on current replacement cost basis, the surplus arising from the revaluation was transferred to the

revaluation reserve and the value of the buildings of the company / group has been reflected in the financial statements at

the revalued amount.

Investment made in subsidiary represents the acquisition of 41,400,002 shares at a value of Rs. 10 per share of the Lanka

Hospitals Diagnostics (Pvt) Ltd, a fully owned subsidiary of the company.

Investment property consists of value attributable to 7th floor of the building constructed on leasehold land, which is given on

rental to Lanka Hospitals Diagnostics (Pvt) Ltd.

There has been no significant change in the nature of the contingencies, capital and other commitments, which were

disclosed in the annual report for the year ended 31st December 2019.

As at 31st December 2019,the fair value of the investment property is based on valuation performed by Mr. A.A.M. Fathihu

(FIV), Chartered Valuer, an accredited independent valuer who has appropriate experience in valuation of properties. The

valuation is based on current replacement cost method.

Freehold land of the Company was revalued by Mr A.A.M. Fathihu (FIV), chartered Valuer in 31st December 2018 on current

market value basis.

There have been no events subsequent to the reporting date, which require disclosure in the interim condensed financial

statements.


Provisional Consolidated Financial Statements for the Quarter ended 30th September 2020

Shareholder and Investor Information

Top 20 Shareholding as at 30th September 2020

Shareholder No of shares Holding

1 Fortis Healthcare International Pte Limited 64,120,915 28.66%

2 Sri Lanka Insurance Corporation Ltd - Life Fund 58,781,308 26.27%

3 Sri Lanka Insurance Corporation Ltd - General Fund 56,080,643 25.07%

4 Property Development PLC A/C 01 21,329,000 9.53%

5 Peoples Bank 7,316,042 3.27%

6 Bank of Ceylon A/c Ceybank Unit Trust 3,014,475 1.35%

7 Dr. Mohommed Rafeed Mubarak 1,421,606 0.64%

8 Bank of Ceylon A/c Ceybank Century Growth Fund 852,516 0.38%

9 Bank of Ceylon NO. 1 Account 309,949 0.14%

10 Mr.A.H. Munasinghe 293,300 0.13%

11 Deutsche Bank AG-As Trustee for Guardian Acuity Equity Fund 249,337 0.11%

12 Sandwave Limited 227,977 0.10%

13 Mrs. C.A.D.S. Woodward 220,300 0.10%

14 Hatton National Bank PLC - Arpico Ataraxia Equity Income Fund 200,000 0.09%

15 Seylan Bank PLC / Senthilverl Holdings (Pvt) Ltd 198,987 0.09%

16 Dr.N.I. Gamaathige 185,627 0.08%

17 Mr.S.. Subramaniam 156,104 0.07%

18 Mr.M. Balasubramaniam 136,000 0.06%

19 Hatton National Bank PLC - K.R.E.M. Dharshan Maduranga Bandara Jayasundara 130,000 0.06%

20 Mrs. M.A.C. Felsinger 117,700 0.05%

215,341,786 96.25%

Individual / Institution

As % As %

Individual 7,483 98.28 10,041,286 4.49

Institution 131 1.72 213,690,883 95.51

7,614 100.00 223,732,169 100.00

Resident / Non-Resident

As % No of Shares As %

Resident 7,594 99.74 159,091,204 71.11

Non-Resident 20 0.26 64,640,965 28.89

7,614 100.00 223,732,169 100.00

Directors'/Senior Management Shareholdings as at 30th September 2020

Board of Directors Position No of shares Holding %

Dr.Bandula WIJESIRIWARDHANA Chairman - -

Mr.Ashish BHATIA Director - -

Ms. Richa Singh DEBGUPTA Director - -

Ms.Roshini CABRAAL Director - -

Dr.Ravindra RUBERU Director - -

Ms.Lakshmi SANGAKKARA Director - -

Mr.Mayura FERNANDO Director - -

Mr.Kushan D' ALWIS PC Director - -

Mr.Nandun FERNANDO Director - -

Ms.Dayakanthi ABEYRATHNE Director - -

Dr.Kanishka Karunaratne Director - -

Mr Anurag KALRA (Alternate Director to Mr.Ashish BHATIA) Alternate Director - -

Mr. Rajiv PURI (Alternate Director to Ms. Richa Singh

DEBGUPTA) Alternate Director- -

Senior Management

Group Chief Executive

OfficerMr.Deepthi Lokuarachchi - -

No of Shareholders No of Shares

No of Shareholders


Shareholder and Investor Information (cont.)

Price fluctuation (Market price of Ordinary share)

Rs. Rs.

Highest price

Lowest price

Closing price

Summary of Share Ranges

Share RangeNo of

shareholdersNo of shares Holding %

1 1 -1,000 6,218 2,133,732 0.95

2 1,001 - 10,000 1,274 3,583,030 1.60

3 10,001 - 100,000 100 2,516,646 1.12

4 100,001 - 1,000,000 15 3,434,772 1.54

5 1,000,001 & above 7 212,063,989 94.78

7,614 223,732,169 100.00

44.00 40.90

30th September 2020 30th September 2019

52.00

40.00

Current Interim Period Comparative Period

3 months ended 3 months ended

44.90

31.70


Financial Indicators

Group Company Group Company1 Net asset per share Rs. Rs. Rs. Rs.

Total Assets - Short Term & Long Term Liabilities 30.49 27.15 29.63 27.06

Total No of Shares 223,732,169 223,732,169

2 Gearing Ratio

Total Debt N/A N/A N/A N/A

Total Equity -

6,054,053,576 3 Quick Asset Ratio (Times)

Current Assets-Inventory 3.47 2.17 3.41 2.54

Current Liabilities 3,520,407,708

1,625,583,172 4 Interest Cover

Profit before interest & tax (PBIT) N/A N/A N/A N/A

Interest charges 108,663,485

-

Current Period

3 Months ended 30th September 2020

Comparative Period

Immediately Preceding Financial Year

31st December 2019

Current Interim Period

Corporate Information

Name of the Company

The Lanka Hospitals Corporation PLC

Company Registration No.

PQ 180

Registered Office

No.578, Elvitigala Mawatha,

Narahenpita, Colombo 05, Sri Lanka.

Tel: +94 11 5430000

Fax: +94 11 4511199

E-mail: [email protected]

Secretaries & Registrars to Shares

Accounting Systems Secretarial

Services (Private) Limited,

Level 03, No:11, Castle Lane, Colombo 4

Tel: +94 11 544 4400

Auditors

National Audit Office

306/72, Polduwa Road,

Battaramulla,

Sri Lanka.

30th september 2020...ms. richa singh debgupta dr.prasad ariyawansa ( resigned on 17th july 2020 )...

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