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LAUGFS GAS PLC INTERIM REPORT FOR THE QUARTER ENDED 31 MARCH 2018

CHAIRMAN’S MESSAGE

Dear Stakeholder,

At this very important juncture, I would like to elaborate the fact that LAUGFS Gas PLC underwent a restructuring

process on 31st March 2018 where it’s former subsidiaries namely LAUGFS Leisure Ltd-engaged in the leisure sector,

LAUGFS Power Ltd-engaged in the renewable energy sector and LAUGFS Eco Sri Ltd-engaged in vehicle emission

testing, was vested with the shareholders of LAUGFS Gas PLC by way of a scheme of arrangement as per section 256 of

the Companies Act No. 7 of 2007, whereby the LAUGFS Gas group transformed itself into a pure play energy Company

in order to focus intensely on its core business operations.

Whilst initial approval to proceed with this process was granted by the Commercial High Court under the case bearing

number HC (Civil) 01/2018/CO, the Company managed to obtain requisite shareholder approval for the same at its

Extraordinary General Meeting held on 20th March 2018, whereby the final order approving the process by the

Commercial High Court was granted on 23rd March 2018. Accordingly LAUGFS Leisure Ltd, LAUGFS Power Ltd and

LAUGFS Eco Sri Ltd were vested with the shareholders of LAUGFS Gas PLC with effect from 31st March 2018.

As a result of this restructuring process, the stated capital of the Company was also reduced to Rs. 1 billion after

following all requisite formalities. The aforesaid restructuring have been incorporated in the financial statements thus

being circulated.

The restructuring process conducted successfully will enable us to integrate effectively the entities under the purview

of Laugfs Gas PLC, involved with the LP Gas value chain consist of sourcing, supply, trading, storage, shipping and the

downstream operations in Sri-Lanka and Bangladesh at present. Besides the integrated operations of the LPG value

chain provides a unique opportunity for the company to expand its business operations beyond our borders in the

near future.

(Sgd).

W. K. H. Wegapitiya

Chairman/Group CEO

30th May 2018

1

LAUGFS Gas PLC

CONSOLIDATED STATEMENT OF PROFIT OR LOSSFor the Quarter ended 31 March 2018

Unaudited Audited

2018 2017 Change 2018 2017 Change

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

Revenue 5,367,699 4,524,799 19 21,354,621 16,270,541 31

Cost of Sales (4,835,285) (4,262,368) 13 (19,210,054) (13,468,756) 43

Gross Profit 532,414 262,431 103 2,144,568 2,801,786 (23)

Other Operating Income 119,033 92,883 28 468,028 373,665 25

Selling and Distribution Expenses (250,836) (333,221) (25) (1,377,165) (1,036,524) 33

Administrative Expenses (498,550) (581,207) (14) (1,226,455) (1,380,235) (11)

Foreign Currency Exchange Gains/(Losses) 2,532 (26,411) 110 27,383 (58,394) 147

Operating Profit/(Loss) (95,406) (585,526) (84) 36,359 700,298 (95)

Finance Costs (409,099) (476,656) (14) (1,767,153) (1,289,307) 37

Fair Value Gain on Investment Properties 106,443 38,316 178 106,443 38,316 178

Finance Income 9,375 11,834 (21) 45,408 56,546 (20)

Loss Before Tax (388,686) (1,012,032) (62) (1,578,942) (494,148) 220

Income Tax Expense (106,370) 276,436 138 (49,135) (128,613) (62)

(495,056) (735,597) (33) (1,628,077) (622,761) 161

Discontinued Operations:

105,418 (12,009) 978 296,263 (4,554) 6,606

Loss for the Period (389,638) (747,606) (48) (1,331,813) (627,315) 112

Attributable to:

Equity Holders of the Parent (389,638) (747,606) (48) (1,331,813) (638,026) 109

Non-Controlling Interests - - - - 10,712 (100)

(389,638) (747,606) (48) (1,331,813) (627,315) 112

Earnings Per Share :

Basic/Diluted (1.01) (1.93) (48) (3.44) (1.65) 109

Attributable to Ordinary Equity Holders of the Parent

Earnings Per Share for Continuing Operations

Basic/Diluted (1.28) (1.90) (33) (4.21) (1.64) 157

Attributable to Ordinary Equity Holders of the Parent

Note : Change % column represents the percentage change in current period's results compared to previous period

The above figures are subject to audit.

Figures in brackets indicate deductions.

The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.

Profit/(Loss) after Tax for the Period from

Discontinued Operations

Quarter ended 31 March

Unaudited

Year ended 31 March

Loss for the Period from Continuing

Operations

2

LAUGFS Gas PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the Quarter ended 31 March 2018

Unaudited Audited

2018 2017 Change 2018 2017 Change

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


Other Comprehensive Income

Gain /(Loss) on Available for Sale Financial Assets 4,456 (22,546) 120 12,803 2,913 340

Reclassification to Profit or Loss as Impairment on Available for

Sale Financial Assets 1,675 122,300 (99) 181,675 122,300 49

Exchange Differences in Translation of Foreign Operations 15,420 5,097 203 (62,873) 118,427 (153)

Surplus on Revaluation of Assets Transfered to Investment

Properties 18,448 136,520 (86) 18,448 136,520 (86)

Income Tax Effect (15,662) (23,961) (35) (15,662) (23,961) (35)

24,336 217,410 (89) 134,391 356,199 (62)

Actuarial Gains/(Losses) on Defined Benefit Plans 41,318 20,055 106 44,045 20,055 120

Income Tax Effect (12,609) (6,178) 104 (13,154) (6,178) 113

28,709 13,877 107 30,891 13,877 123

Other Comprehensive Income/(Loss) for the Period, Net of Tax 53,045 231,287 (77) 165,282 370,076 55

Total Comprehensive Income/(Loss) for the Period Net of Tax (336,594) (516,319) (35) (1,166,532) (257,238) 353

Attributable to:


Non-Controlling Interests - - - - 9,355 (100)

(336,594) (516,319) (35) (1,166,532) (257,238) 353


Other Comprehensive Income not to be Reclassified to Profit or Loss

in Subsequent Periods (Net of Tax) :

Net Other Comprehensive Income not to be Reclassified to Profit

or Loss in Subsequent Periods

Unaudited

Quarter ended 31 March Year ended 31 March

Other Comprehensive Income to be Reclassified to Profit or Loss in

Subsequent Periods (Net of Tax) :

Net Other Comprehensive Income to be Reclassified to Profit or

Loss in Subsequent Periods

3

LAUGFS Gas PLC 0.00 0.00

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 31 March 2018

Unaudited Audited

As at As at

31.03.2018 31.03.2017

ASSETS Rs.'000 Rs.'000

Non-Current Assets

Property, Plant and Equipment 17,070,443 22,625,858

Investment Properties 2,507,307 2,270,800

Intangible Assets 2,343,401 3,088,813

Prepayments 6,292 105,751

Deferred Tax Assets 208 17,394

Other Non-Current Financial Assets 137,634 122,828

22,065,284 28,231,444

Current Assets

Inventories 1,563,784 1,428,210

Trade and Other Receivables 4,470,102 3,822,731


Income Tax Recoverable 266,230 205,100

Other Current Financial Assets 2,678 2,692

Cash and Short-Term Deposits 2,957,223 2,058,564

9,329,819 7,602,549

Total Assets 31,395,103 35,833,993

EQUITY AND LIABILITIES

Capital and Reserves

Stated Capital 1,000,000 3,285,000

Available for Sale Reserve 722 (193,756)

Revaluation Reserve 86,842 112,559

Foreign Currency Translation Reserve 123,987 186,807

Retained Earnings (156,053) 4,253,763

Equity attributable to Equity Holders of the Parent 1,055,499 7,644,374

Non-Controlling Interests 386,184 -

Total Equity 1,441,683 7,644,374

Non-Current Liabilities

Interest Bearing Loans and Borrowings 13,486,083 15,443,240

Deferred Tax Liabilities 649,945 689,989

Deferred Income 810,972 670,652

Employee Benefit Liability 174,391 265,104

Refundable Deposits 2,364,097 2,092,151

17,485,487 19,161,137

Current Liabilities

Trade and Other Payables 4,183,661 3,801,627


Refundable Deposits 252,412 222,495

Income Tax Payable 557,627 653,362


12,467,933 9,028,482

Total Equity and Liabilities 31,395,103 35,833,993

Net Assets Per Share (Rs.) 2.73 19.75

Note: The above figures are subject to audit.

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

(Sgd).

Dilshan Perera

Finance Director

(Sgd). (Sgd).

W.K.H.Wegapitiya U.K.Thilak De Silva

Director Director

25 May 2018

Colombo


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

Board by:

4

LAUGFS Gas PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the Year ended 31 March 2018

Stated Retained Available for Revaluation Foreign Currency Total Non-Controlling Total

Capital Earnings Sale Reserve Reserve Translation Reserve Interests Equity

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

As at 01 April 2016 3,285,000 5,395,273 (318,968) - 48,439 8,409,744 1,195,843.60 9,605,588

Profit/(Loss) for the Year - (638,026) - - - (638,026) 10,712 (627,315)

Other Comprehensive Income - 13,877 125,213 112,559 119,096 370,745 (1,357) 369,388

Total Comprehensive Income - (624,149) 125,213 112,559 119,096 (267,282) 9,355 (257,927)

Dividend Paid (Final 2015/2016) - (387,000) - - - (387,000) - (387,000)

Deferred Tax Liability Reversal during the Year - 25,473 - - - 25,473 290 25,762

- (25,535) - - - (25,535) - (25,535)

Acquisition of Non-Controlling Interest - (130,298) - - 19,273 (111,025) (1,205,488) (1,316,513)

As at 31 March 2017 3,285,000 4,253,763 (193,756) 112,559 186,807 7,644,374 - 7,644,374

Loss for the Year - (1,331,813) - - - (1,331,813) - (1,331,813)

Other Comprehensive Income - 30,891 194,478 2,785 (62,873) 165,282 - 165,282

Total Comprehensive Income - (1,300,922) 194,478 2,785 (62,873) (1,166,532) - (1,166,532)

Deferred Tax Liability Reversal during the Year - (119,628) - - - (119,628) - (119,628)

Group Resructure Adjustments (2,285,000) (2,989,266) - (28,502) 53 (5,302,716) 386,184 (4,916,532)

As at 31 March 2018 1,000,000 (156,053) 722 86,842 123,987 1,055,498 386,184 1,441,682

Note : The above figures are subject to audit.

Figures in brackets indicates deductions.


Attributable to Equity Holders of the Parent

Reversal of Surplus on Revaluation for Disposal of Property,

Plant & Equipment

5

LAUGFS Gas PLC

CONSOLIDATED STATEMENT OF CASH FLOWSFor the Year ended 31 March 2018

Unaudited Audited

2018 2017

Rs.'000 Rs.'000

Cash Flows Generated from/(Used in) Operating Activities

Cash Flows from Operating Activities

Loss Before Tax from Continuing Operations (1,578,942) (494,148)

Profit Before Tax from Discontinued Operations 400,143 110,129

Loss Before Tax (1,178,799) (384,019)

Non-Cash Adjustment to Reconcile Profit Before Tax to Net Cash Flows:

Amortization of Intangible Assets 24,979 23,704

Decrease in Fair Value of Quoted Equity Securities 14 (420)

Depreciation of Property, Plant and Equipment 1,298,452 969,804

Fair Value Gain on Investment Properties (106,443) (38,316)

Finance Costs 1,767,153 1,287,802

Finance Income (45,408) (56,546)

Dividend Income (4,360) (3,073)

Provision for contribution to workers' profit participation fund 18,031 28,879

Provision for Employee Benefit Liability 67,977 64,028

Transfer of Employee Benefit Liability (4,934) -

(Profit)/Loss on Disposal of Property, Plant and Equipment 28,121 (8,495)

Exchange Differences 88,318 104,846

Operating Profit Before Working Capital Changes 1,953,100 1,988,196

Working Capital Adjustments:

(Increase)/Decrease in Inventories (253,319) (511,397)

(Increase)/Decrease in Trade and Other Receivables and Prepayments (3,044,806) (962,971)

Increase/(Decrease) in Trade and Other Payables 3,286,917 1,978,559

Increase/(Decrease) in Deferred Income 141,458 153,214

Cash Generated from Operating Activities 2,083,351 2,645,600

Employee Benefit Liability Costs Paid (42,941) (82,092)

Finance Costs Paid (1,585,477) (1,165,502)

Income Tax Paid (459,668) (259,488)

Refund/Transfers of Deposits (593,163) (498,560)

Refundable Deposits Received 896,681 728,654

Net Cash Flows Generated from / (Used in) Operating Activities 298,783 1,368,612

Cash Flows from / (Used in) Investing Activities

Acquisition of Intangible Assets (12,220) (1,232)

Acquisition of Property, Plant and Equipment (6,066,058) (9,299,557)

Acquisition of Investment Properties (11,957) (73,684)

Dividends Received 4,304 2,450

Investments in Quoted Equity Securities (2,004) -

Proceeds from Disposal of Property, Plant and Equipment 14,199 41,544

Net Cash and Cash Equivalent Adjustment Related to Group Restructuring 227,033 -

Net Cash Flows Used in Investing Activities (5,846,703) (9,330,479)

Cash Flows from / (Used in) Financing Activities

Proceeds from Interest Bearing Loans and Borrowings 22,420,686 22,853,480

Dividend Paid - (387,000)

Finance Income 45,408 56,546

Capital Repayment under Finance Lease Liabilities (7,258) (6,593)

Acquisition of Non-Controlling Interest - (1,316,513)

Repayment of Interest Bearing Loans and Borrowings (16,056,019) (15,210,152)

Net Cash Flows From/ (Used) in Financing Activities 6,402,817 5,989,767

Net Increase/(Decrease) in Cash and Cash Equivalent 854,897 (1,972,100)

Cash and Cash Equivalent at the Beginning of the Year 1,416,540 3,388,639

Cash and Cash Equivalent at the End of the Year 2,271,437 1,416,540




6

LAUGFS Gas PLC

COMPANY STATEMENT OF PROFIT OR LOSSFor the Quarter ended 31 March 2018

Unaudited Audited

2018 2017 Change 2018 2017 Change

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

Revenue 3,432,464 2,727,372 26 12,834,119 10,386,886 24

Cost of Sales (3,263,632) (2,853,400) 14 (12,258,443) (9,244,996) 33

Gross Profit/(Loss) 168,833 (126,028) 234 575,676 1,141,891 (50)

Other Operating Income 348,137 266,671 31 1,003,102 1,156,919 (13)

Selling and Distribution Expenses (174,801) (252,780) (31) (898,517) (735,761) 22

Administrative Expenses (178,042) (367,870) (52) (576,472) (792,919) (27)

Foreign Currency Exchange Gains/(Losses) 12,939 (7,759) 267 78,138 (24,717) 416

Operating Profit/(Loss) 177,067 (487,766) (136) 181,927 745,412 (76)

Finance Costs (388,269) (463,316) (16) (1,682,219) (1,225,388) 37

Fair Value Gain on Investment Properties 43,000 26,000 65 43,000 26,000 65

Finance Income 1,438 1,115 29 5,905 5,654 4

Loss Before Tax (166,764) (923,967) (82) (1,451,387) (448,322) 224

Income Tax Expense (81,347) 296,783 (127) 180,484 189,194 (5)


Attributable to:


Non-Controlling Interests - - - - - -

(248,111) (627,184) (60) (1,270,903) (259,128) 390

Note : Change % column represents the percentage change in current period's results compared to previous period





Unaudited

Year ended 31 March

7

LAUGFS Gas PLC

COMPANY STATEMENT OF COMPREHENSIVE INCOMEFor the Quarter ended 31 March 2018

Unaudited Audited

2018 2017 Change 2018 2017 Change

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


Other Comprehensive Income

Gain/(Loss) on Available for Sale Financial Assets 4,456 (22,546) 120 12,803 2,913 340

Reclassification to Profit or Loss as Impairment on Available for Sale

Financial Assets 1,675 122,300 (99) 181,675 122,300 49

6,131 99,754 (94) 194,478 125,213 55

Actuarial Gains/(Losses) on Defined Benefit Plans 5,161 11,123 (54) 7,889 11,123 (29)

Income Tax Effect (1,032) (2,225) (54) (1,578) (2,225) (29)

4,129 8,898 (54) 6,311 8,898 (29)

Other Comprehensive Income/(Loss) for the Period, Net of Tax 10,260 108,652 (91) 200,789 134,111 50

Total Comprehensive Income/(Loss) for the Period Net of Tax (237,851) (518,532) (54) (1,070,115) (125,018) 756

Attributable to:


(237,851) (518,532) (54) (1,070,115) (125,018) 756


Other Comprehensive Income not to be Reclassified to Profit or Loss

in Subsequent Periods (Net of Tax) :

Net Other Comprehensive Income not to be Reclassified to Profit

or Loss in Subsequent Periods


Unaudited

Year ended 31 March

Other Comprehensive Income to be Reclassified to Profit or Loss in

Subsequent Periods (Net of Tax) :

Net Other Comprehensive Income to be Reclassified to Profit or

Loss in Subsequent Periods

8

LAUGFS Gas PLC (0.00) 0.01

COMPANY STATEMENT OF FINANCIAL POSITIONAs at 31 March 2018

Unaudited Audited

As at As at

31.03.2018 31.03.2017

Rs.'000 Rs.'000

ASSETS

Non-Current Assets

Property, Plant and Equipment 7,586,202 6,629,727

Investment Properties 804,500 761,500

Intangible Assets 12,364 25,177

Investments in Subsidiaries 6,874,035 11,850,337

Other Non-Current Financial Assets 137,634 122,828

15,414,736 19,389,569

Current Assets

Inventories 771,276 569,521

Trade and Other Receivables 3,381,684 3,390,784


Income Tax Recoverable 265,237 202,210

Other Current Financial Assets 2,678 2,692

Cash and Short-Term Deposits 122,949 287,878

4,577,898 4,471,965

Total Assets 19,992,634 23,861,534

EQUITY AND LIABILITIES

Capital and Reserves

Stated Capital 1,000,000 3,285,000

Available for Sale Reserve 722 (193,756)

Retained Earnings (406,608) 4,215,871

Equity attributable to Equity Holders of the Parent 594,114 7,307,115

Total Equity 594,114 7,307,115

Non-Current Liabilities


Deferred Tax Liabilities 451,744 592,349


Employee Benefit Liability 54,274 59,875

Refundable Deposits 2,271,709 2,002,455

9,833,990 11,445,623

Current Liabilities

Trade and Other Payables 2,429,679 1,398,999


Refundable Deposits 252,412 222,495


9,564,529 5,108,796

Total Equity and Liabilities 19,992,634 23,861,534

Net Assets Per Share (Rs.) 1.54 18.88

Note: The above figures are subject to audit.

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

(Sgd).

Dilshan Perera

Finance Director

(Sgd). (Sgd).

W.K.H.Wegapitiya U.K.Thilak De Silva

Director Director

25 May 2018

Colombo


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

by:

9

LAUGFS Gas PLC

COMPANY STATEMENT OF CHANGES IN EQUITY For the Year ended 31 March 2018

Stated Retained Available for Total

Capital Earnings Sale Reserve Equity

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

As at 01 April 2016 3,285,000 4,862,981 (318,968) 7,829,013

Loss for the Year - (259,128) - (259,128)

Other Comprehensive Income - 8,898 125,213 134,111

Total Comprehensive Income - (250,230) 125,213 (125,018)

Dividend Paid (Final 2015/2016) - (387,000) - (387,000)

Deferred Tax Liability Reversal during the Year - 15,656 - 15,656

- (25,535) - (25,535)

As at 31 March 2017 3,285,000 4,215,871 (193,756) 7,307,115

Loss for the Year - (1,270,903) - (1,270,903)

Other Comprehensive Income - 6,311 194,478 200,789

Total Comprehensive Income - (1,264,593) 194,478 (1,070,115)

Deferred Tax Liability Reversal during the Year - (45,454) - (45,454)

Group Resructure Adjustments (2,285,000) (3,312,432) - (5,597,432)

As at 31 March 2018 1,000,000 (406,608) 722 594,114




Reversal of Surplus on Revaluation of Disposal of Property, Plant

& Equipment

10

LAUGFS Gas PLC

COMPANY STATEMENT OF CASH FLOWSFor the Year ended 31 March 2018

Unaudited Audited

2018 2017

Rs.'000 Rs.'000

Cash Flows Generated from/(Used in) Operating Activities

Cash Flows from Operating Activities

Loss Before Tax (1,451,387) (448,322)

Non-Cash Adjustment to Reconcile Profit Before Tax to Net Cash Flows:

Amortization of Intangible Assets 13,185 13,587

Decrease in Fair Value of Quoted Equity Securities 14 (420)

Depreciation of Property, Plant and Equipment 459,310 402,324

Fair Value Gain on Investment Properties (43,000) (26,000)

Finance Costs 1,682,219 1,225,388

Finance Income (5,905) (5,654)

Dividend Income (509,152) (771,027)

Provision for Employee Benefit Liability 14,287 14,999

Transfer of Employee Benefit Liability (8,260) -

(Profit)/Loss on Disposal of Property, Plant and Equipment 28,458 (8,341)

Exchange Differences 8,906 43,994

Operating Profit Before Working Capital Changes 188,674 440,528

Working Capital Adjustments:

(Increase)/ Decrease in Inventories (201,755) (58,254)

(Increase)/Decrease in Trade and Other Receivables and Prepayments (6,038) 1,429,518

Increase/ (Decrease) in Trade and Other Payables 726,667 332,734

Increase/ (Decrease) in Deferred Income 141,458 153,214

Cash Generated from / (Used in) Operating Activities 849,006 2,297,739

Employee Benefit Liability Costs Paid (3,739) (6,792)

Finance Costs Paid (1,500,544) (1,103,088)

Income Tax Paid (63,970) (40,287)

Refundable Deposits Received 889,645 715,418

Refund/Transfers of Refundable Deposits (590,474) (492,685)

Net Cash Flows Generated from / (Used in) Operating Activities (420,075) 1,370,305

Cash Flows from / (Used in) Investing Activities

Acquisition of Intangible Assets (373) -

Acquisition of Property, Plant and Equipment (1,453,727) (924,429)

Dividends Received 509,097 770,405

Investments in Quoted Equity Securities (2,004) -

Investments in Subsidiaries (320,000) (6,051,556)

Proceeds from Disposal of Property, Plant and Equipment 9,484 39,334

Net Cash Flows Used in Investing Activities (1,257,522) (6,166,246)

Cash Flows from / (Used in) Financing Activities

Proceeds from Interest Bearing Loans and Borrowings 16,846,917 18,192,373

Dividend Paid - (387,000)

Finance Income 5,905 5,654

Repayment of Interest Bearing Loans and Borrowings (15,438,253) (14,600,699)

Net Cash Flows from /(Used in) Financing Activities 1,414,569 3,210,327

Net Increase/(Decrease) in Cash and Cash Equivalent (263,029) (1,585,614)

Cash and Cash Equivalent at the Beginning of the Year (114,131) 1,471,483

Cash and Cash Equivalent at the End of the Year (377,160) (114,131)




11

Operating Segments

2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

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

Revenue

External Customers 20,718,434 16,217,974 102,839 52,567 533,348 - - - - - 21,354,621 16,270,541

Inter-Segment 3,449 - 43,564 21,333 775,125 1,188,952 6,573,403 1,965,930 (7,395,542) (3,176,215) - -

Total Revenue 20,721,883 16,217,974 146,403 73,900 1,308,473 1,188,952 6,573,403 1,965,930 (7,395,542) (3,176,215) 21,354,621 16,270,541

Results

Operating Profit 485,693 1,257,744 81,175 57,525 215,766 454,411 (95,226) 1,384 (651,049) (1,070,765) 36,359 700,298

Finance Costs (1,682,219) (1,225,388) (30,713) (19,393) (54,147) (61,570) (3,266) - 3,193 17,044 (1,767,153) (1,289,307)

Fair Value Gain on Investment Properties 43,000 26,000 74,743 12,316 - - - - (11,300) - 106,443 38,316

Finance Income 44,723 42,030 355 134 329 14,382 1 - - - 45,408 56,546

Profit/(Loss) Before Tax (1,108,803) 100,386 125,560 50,581 161,948 407,222 (98,490) 1,384 (659,156) (1,053,722) (1,578,942) (494,148)

Income Tax Expense 48,392 (18,795) (46,758) (6,935) 344 (844) - - (51,113) (102,039) (49,135) (128,613)

Profit/(Loss) for The Year from Continuing Operations (1,060,411) 81,592 78,802 43,646 162,292 406,379 (98,490) 1,384 (710,269) (1,155,761) (1,628,077) (622,761)

Profit/(Loss) for The Year from Discontinued Operations - - - - - - - - 296,263 (4,554) 296,263 (4,554)

Profit/(Loss) for the Year (1,060,411) 81,592 78,802 43,646 162,292 406,379 (98,490) 1,384 (414,006) (1,160,315) (1,331,813) (627,315)

Net Gain/(Loss) on Available for Sale Financial Assets 12,803 2,913 - - - - - - - - 12,803 2,913

Reclassification to Profit or Loss as Impairment on Available

for Sale Financial Assets 181,675 122,300 - - - - - - - - 181,675 122,300

Actuarial Gains/(Losses) on Defined Benefit Plans 36,967 24,331 (130) (330) 1,049 22 - - 6,160 (3,969) 44,045 20,055

Exchange Differences in Translation of Foreign Operations (33,309) 48,085 - - - - 12,647 1,955 (42,211) 68,388 (62,873) 118,427

Surplus on revaluation of asstes transferred to Investment

Properties - - - 158,347 - - - - 18,448 (21,827) 18,448 136,520

Income Tax Effect (11,755) (6,848) (16,481) (27,727) (431) (6) - - (149) 4,442 (28,817) (30,139)

Total Comprehensive Income for the Year Net of Tax (874,030) 272,373 62,190 173,936 162,910 406,394 (85,844) 3,339 (431,759) (1,113,280) (1,166,532) (257,238)

Assets & Liabilities

Total Non-Current Assets 14,815,419 17,975,591 1,884,936 1,803,961 7,646,447 4,506,233 1,320,156 1,320,391 (3,601,673) 2,625,269 22,065,284 28,231,444

Total Current Assets 6,460,889 6,909,245 230,829 248,692 3,161,061 1,501,640 1,341,980 267,122 (1,864,941) (1,324,151) 9,329,819 7,602,549

Total Assets 21,276,309 24,884,836 2,115,765 2,052,653 10,807,509 6,007,873 2,662,136 1,587,513 (5,466,614) 1,301,118 31,395,103 35,833,993

Total Non-Current Liabilities 10,185,365 11,761,793 409,158 317,237 6,898,955 1,930,029 - - (7,991) 5,152,079 17,485,487 19,161,137

Total Current Liabilities 11,218,358 6,733,542 171,566 691,731 1,574,468 1,775,835 1,373,633 213,166 (1,870,091) (385,792) 12,467,933 9,028,482

Total Liabilities 21,403,723 18,495,334 580,724 1,008,968 8,473,424 3,705,863 1,373,633 213,166 (1,878,082) 4,766,287 29,953,421 28,189,619



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Energy Property Development Eliminations/Adjustments GroupTrading

LAUGFS Gas PLC

NOTES TO THE FINANCIAL STATEMENTS

1 Corporate Information

2 Basis of Preparation

3 Group Restructuring

LAUGFS Gas PLC is a public limited liability company incorporated and domiciled in Sri Lanka. Its ordinary voting and non voting shares were

listed on Main Board of Colombo Stock Exchange.

The interim financial statements of the group and company for the Quarter ended 31 March 2018 were authorised for issue by the board of directors

on 25 May 2018.

The Interim financial statements of Laugfs Gas PLC have been prepared in accordance with Sri Lanka Accounting Standards comprising of SLFRS

and LKAS (hereafter referred as "SLFRS") issued by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and accounting policies

set out in the Annual Report for the year ended 31 March 2017.

The interim financial statements have been prepared on a historical cost basis, except for "investment properties", "other non-current financial

assets" and "other current financial assets" which have been measured at fair value.

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

Reporting". They should be read in conjunction with the Annual Report for the year ended 31 March 2017.

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

be comparable with those of the current period.

“The Company underwent a restructuring process on 31st March 2018 where it’s former subsidiaries namely LAUGFS Leisure Ltd-engaged in the

leisure sector, LAUGFS Power Ltd-engaged in the renewable energy sector and LAUGFS Eco Sri Ltd-engaged in vehicle emission testing, was

vested with the shareholders of LAUGFS Gas PLC by way of a scheme of arrangement as per section 256 of the Companies Act No. 7 of 2007,

whereby the LAUGFS Gas group transformed itself into a pure play energy Company in order to focus intensely on its core business operations.

Whilst initial approval to proceed with this process was granted by the Commercial High Court under the case bearing number HC (Civil)

01/2018/CO, the Company managed to obtain requisite shareholder approval for the same at the Extraordinary General Meeting held on 20th March

2018, whereby the final order approving the process by the Commercial High Court was granted on 23rd March 2018. Accordingly LAUGFS

Leisure Ltd, LAUGFS Power Ltd and LAUGFS Eco Sri Ltd were vested with the shareholders of LAUGFS Gas PLC with effect from 31st March

2018. As a result of this restructuring process the stated capital of the Company was also reduced to Rs. 1 billion after following all requisite

formalities. The aforesaid restructuring have been incorporated in the financial statments thus being circulated”

13

LAUGFS Gas PLC


4 Share Information

4.1. Public share holdings

4.2. Directors Share holdings

The number of shares held by the Board of directors are as follows

Ordinary Voting Shares

As at 31-03-2018 31-12-2017

Name of Director

Mr W K H Wegapitiya 1,411,536 1,411,536

Mr U K Thilak De Silva 1,077,897 1,077,897

Mr H A Ariyaratne 3,900 3,900

Mr.C.L.De Alwis. (Passed away on 11 May 2018) 1,000 1,000

Mr.P.M.Kumarasinghe PC. (Resigned on 31 Dec 2017) 4,800 4,800

Mr T K Bandaranayake Nil Nil

Mr. N M Prakash 17,000 17,000

Mr. A R D Perera Nil Nil

Mr. A N Ranasinghe Nil Nil

Ordinary Non Voting Shares

As at 31-03-2018 31-12-2017

Name of Director

Mr W K H Wegapitiya. Nil Nil

Mr U K Thilak De Silva. Nil Nil

Mr H A Ariyaratne. 3,400 3,400

Mr.C.L.De Alwis. (Passed away on 11 May 2018) 500 500

Mr.P.M.Kumarasinghe PC. (Resigned on 31 Dec 2017) Nil Nil

Mr T K Bandaranayake. Nil Nil

Mr. N M Prakash. Nil Nil

Mr. A R D Perera Nil Nil

Mr. A N Ranasinghe Nil Nil

4.3. Chief Executive Officer's Share holdings


As at 31-03-2018 31-12-2017

Name

Mr Ashan De Silva. 12,600 12,600


As at 31-03-2018 31-12-2017

Name

Mr Ashan De Silva. 22,500 22,500

Total number of shareholders who hold the public holding as at 31 March 2018 were 9,184 (31 December 2017 -9,346).

The percentage of ordinary voting shares held by the public as at 31 March 2018 were 25.22% (31 December 2017 - 25.22%).

14

LAUGFS Gas PLC


4.4 Twenty Largest Shareholders of the company are as follows


As at

Name of Shareholder No.of Shares % No.of Shares %

1 LAUGFS HOLDINGS LIMITED 247,980,050 74.02 246,057,450 73.45

2 EMPLOYEES PROVIDENT FUND 57,897,800 17.28 57,897,800 17.28

3 SEYLAN BANK PLC / CARLINES HOLDINGS (PRIVATE) LIMITED 1,953,696 0.58 2,348,402 0.70

4 AMANABANK PLC/ALMAS ORGANISATION (PVT) LTD 1,547,795 0.46 1,259,867 0.38

5 MR. W K H WEGAPITIYA 1,411,536 0.42 1,411,536 0.42

6

DEUTSCHE BANK AG AS TRUSTEE FOR NAMAL ACUITY VALUE

FUND 1,339,563 0.40 1,339,563 0.40

7 DEUTSCHE BANK AG-NATIONAL EQUITY FUND 1,318,182 0.39 1,318,182 0.39

8 DEUTSCHE BANK AG - NAMAL GROWTH FUND 1,198,934 0.36 1,198,934 0.36

9 MR. U K T N DE SILVA 1,077,897 0.32 1,077,897 0.32

10 MR. G Y N MAHINKANDA 794,572 0.24 779,272 0.23

11 MR. H D M P SIRIWARDENA 749,000 0.22 749,000 0.22

12 SEYLAN BANK PLC / MOHAMED MUSHTAQ FUAD 625,521 0.19 - -

13 MR. M K DE VOS & MRS. D J DE VOS 436,000 0.13 524,000 0.16

14 MR. A RAJARATNAM 209,705 0.06 - -

15 EMPLOYEES TRUST FUND BOARD 205,304 0.06 205,304 0.06

16 MR. C S KARIYAWASAN 200,000 0.06 200,000 0.06

17 MR. H A VAN STARREX 197,098 0.06 357,598 0.11

18 J.B. COCOSHELL (PVT) LTD 187,669 0.06 150,000 0.04

19 CEYLON BISCUITS LIMITED 170,000 0.05 170,000 0.05

20 BANK OF CEYLON NO. 1 ACCOUNT 168,727 0.05 168,727 0.05

31-03-2018 31-12-2017

15

LAUGFS Gas PLC


4.5 Twenty Largest Shareholders of the company are as follows


As at

Name of Shareholder No.of Shares % No.of Shares %

1 EMPLOYEES PROVIDENT FUND 18,041,300 34.69 18,041,300 34.69

2 HSBC INTL NOM LTD - STATE STREET LUXEMBOURG C/O SSBT -

ALLIANCEBERNSTEIN NEXT 50 EMERGING MARKETS (MASTER) FUND SICAV-

SIF S.C.SP.

3,846,247 7.40 3,846,247 7.40

3 BANK OF CEYLON NO. 1 ACCOUNT 3,420,538 6.58 3,420,538 6.58

4 DEUTSCHE BANK AG AS TRUSTEE FOR J B VANTAGE VALUE EQUITY FUND 2,505,696 4.82 2,505,696 4.82

5 SEYLAN BANK PLC/ CARLINES HOLDINGS (PRIVATE) LIMITED 2,213,417 4.26 2,157,064 4.15

6 AMANA BANK PLC / ALMAS ORGANISATION (PVT) LIMITED 1,249,845 2.40 1,248,645 2.40

7 J. B. COCOSHELL (PVT) LTD 1,247,549 2.40 1,171,322 2.25

8 MR. A.M. WEERASINGHE 813,471 1.56 813,471 1.56

9 COMMERCIAL BANK OF CEYLON PLC/DUNAMIS CAPITAL PLC 793,906 1.53 793,906 1.53

10 SEYLAN BANK PLC / S R FERNANDO 704,992 1.36 508,698 0.98

11 DEUTSCHE BANK AG - NATIONAL EQUITY FUND 663,000 1.28 663,000 1.28

12 MR. G H I JAFFERJEE (DECEASED) 442,008 0.85 442,008 0.85

13 MR. S SIVASHANTH 404,447 0.78 404,447 0.78

14 GOLD INVESTMENT LIMITED 390,000 0.75 390,000 0.75

15 MRS C N G NARAYANA 378,800 0.73 378,800 0.73

16 MRS S D AMARASINGHE 372,400 0.72 372,400 0.72

17 NARATHA VENTURES (PRIVATE) LIMITED 308,000 0.59 308,000 0.59

18 PERSHING LLC S/A AVERBACH GRAUSON & CO. 307,604 0.59 307,604 0.59

19 MR. M.A. VALABHJI 280,000 0.54 280,000 0.54

20 PEOPLE'S LEASING & FINANCE PLC / C.D.KOHOMBANWICKRAMAGE 167,934 0.32 167,934 0.32

4.6 Stated Capital

Stated Capital is represented by number of shares in issue as given below.

As at 31-03-2018 31-12-2017

Ordinary voting shares 335,000,086 335,000,086

Ordinary non voting shares 52,000,000 52,000,000

387,000,086 387,000,086

31-03-2018 31-12-2017

16

LAUGFS Gas PLC


4.7 Market price per share

For the Quarter ended

Voting Non Voting Voting Non Voting

Share Share Share Share

Highest 39.80 31.00 34.00 33.00

Lowest 21.20 20.90 27.60 24.00

Last Traded 35.50 25.80 28.10 24.80

5. Contingencies, capital and other commitments

6. Events occuring after the reporting date

There have been no material events occurring after the reporting date that require adjustments to or disclosure in the financial

statements.

31-03-2018 31-03-2017

Rs. Rs.

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

report for the year ended 31 March 2017.

17

Name of the company : LAUGFS Gas PLC

(A Subsidiary of LAUGFS HOLDINGS LIMITED)

Company No : PV - 8330 PB/PQ

Legal Form : A Public Quoted Company with Limited Liability

Subsidiaries : LAUGFS Gas (Bangladesh) Ltd.

LAUGFS Property Developers (Pvt) Ltd.

LAUGFS Maritime Services (Pvt) Ltd.

SLOGAL Energy DMCC

LAUGFS Terminals Ltd.

Sub Subsidiaries : LAUGFS On Reid(Pvt) Ltd

Parent Enterprise :

Board Of Directors : Mr.W.K.H.Wegapitiya. (Chairman/ Group CEO)

Mr.U.K.Thilak De Silva. (Group Managing Director)

Mr.H.A.Ariyaratne.

Mr.T.K.Bandaranayake.

Mr.C.L.De Alwis. (passed away on 11th May 2018)

Mr.P.M.Kumarasinghe PC (resigned on 31st December 2017)

Mr. N M Prakash.

Mr. A R D Perera

Mr. A N Ranasinghe

Bankers : Commercial Bank of Ceylon PLC.

Hatton National Bank PLC.

Sampath Bank PLC

People's Bank.

Bank of Ceylon.

Seylan Bank PLC.

DFCC Bank PLC.

Union Bank of Colombo PLC.

Standard Chartered Bank.

Pan Asia Banking Corporation PLC.

MCB Bank Ltd.

Auditors : Ernst & Young.

(Chartered Accountants)

# 201, De Saram Place,

Colombo 10,

Sri Lanka.

Secretaries : Corporate Advisory Services (Pvt) Ltd.

# 47, Alexandra Place, Colombo 07,

Sri Lanka.

Registrars : P W Corporate Secretarial (Pvt) Ltd.

# 3/17, Kinsey Road, Colombo 08,

Sri Lanka.

Registered Office : # 101, Maya Avenue, Colombo 06,

Sri Lanka.

Corporate Website : www.laugfs.lk

www.laugfsgas.lk

Corporate Information

The Company's holding Company and controlling entity is LAUGFS Holdings

Limited, which is incorporated in Sri Lanka.

18

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