hayleys plc · 2016. 9. 29. · company audited unaudited unaudited unaudited unaudited year ended...

Second QuarterSix months ended 30th September, 2015

Interim Report

HAYLEYS PLC

Consolidated

Audited Unaudited Unaudited Unaudited Unaudited

year ended 6 months to 6 months to 3 months to 3 months to

31.03.15 30.09.15 30.09.14 Change 30.09.15 30.09.14 Change

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

(Restated)

92,561,865 Revenue 5 44,019,522 45,446,851 (3) 21,996,742 22,858,093 (4)

(71,268,719) Cost of sales (33,444,850) (35,541,361) (6) (16,502,028) (17,610,220) (6)

21,293,146 Gross profit 10,574,672 9,905,490 7 5,494,714 5,247,873 5

537,750 Other income 235,113 229,527 2 112,797 114,827 (2)

(2,589,099) Distribution expenses (1,447,654) (1,359,020) 7 (728,974) (694,081) 5

(10,585,170) Administrative expenses (5,657,382) (5,037,428) 12 (2,837,144) (2,529,010) 12

(146,081) Other expenses (70,950) (62,279) 14 (30,840) (33,528) (8)

8,510,546 Results from operating activities 3,633,799 3,676,290 (1) 2,010,553 2,106,081 (5)

452,332 Finance Income 438,374 270,305 62 270,550 104,384 159

(2,587,346) Finance Costs (1,521,465) (1,251,326) 22 (855,125) (600,404) 42

(2,135,014) Net finance costs (1,083,091) (981,021) 10 (584,575) (496,020) 18

24,383 Share of profit from equity accounted 168,966 12,330 >100 102,757 9,131 >100

investees ( net of tax)6,399,915 Profit before tax 6 2,719,674 2,707,599 0 1,528,735 1,619,192 (6)

(1,513,581) Tax expense (652,478) (678,285) (4) (384,123) (373,225) 3

4,886,334 Profit for the period 2,067,196 2,029,314 2 1,144,612 1,245,967 (8)

Attributable to:2,581,298 Owners of the parent 1,151,871 958,360 20 629,143 591,542 6

2,305,036 Non-Controlling interest 915,325 1,070,954 (15) 515,469 654,425 (21)

4,886,334 2,067,196 2,029,314 2 1,144,612 1,245,967 (8)

Earnings per share 34.42 Basic earnings per share (Rs.) 15.36 12.78 8.39 7.89

34.42 Diluted earnings per share (Rs.) 15.36 12.78 8.39 7.89

-

The Notes on pages 10 to 16 form an integral part of these Financial Statements.

Figures in brackets indicate deductions.

Income Statements

Consolidated Consolidated

HAYLEYS PLC | Page 1

Company



31.03.15 30.09.15 30.09.14 Change 30.09.15 30.09.14 Change

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

284,949 Revenue 166,482 126,142 32 83,254 58,082 43

(164,457) Cost of sales (77,969) (86,668) (10) (38,012) (39,159) (3)

120,492 Gross profit 88,513 39,474

Consolidated



31.03.15 30.09.15 30.09.14 Change 30.09.15 30.09.14 Change

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

(Restated)

4,886,334 Profit for the Period 2,067,196 2,029,314 2 1,144,612 1,245,967 (8)

Other Comprehensive income

Items will not be reclassified subsequently to profit or loss3,108,054 Revaluation of land - - - - - -

119,796 Share of other comprehensive income of equity accounted investees - - - - - - (7,228) Actuarial (loss)/gain on Empolyee benefit obligations - (2,057) >100 - - -

5,392 Income tax on other comprehensive income - - - - - -

Items will be reclassified subsequently to profit or loss(157,632) Net exchange differences on translation of foreign operations (18,790) (10,262) 100

867 Share of other comprehensive income of equity accounted investees

- - - - - -

20,555 Net change in fair value of available-for-sale financial assets 3,732 17,261 (78) (2,326) 5,247

Company



31.03.15 30.09.15 30.09.14 Change 30.09.15 30.09.14 ChangeRs.'000 Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %

754,405 Profit for the Period 182,175 254,678 (28) 79,613 191,317 (58)


Items will not be reclassified subsequently to profit or loss1,453,000 Revaluation of land - - - - -

- Share of other comprehensive income of equity accounted

investees

- - - - - -

80,652 Actuarial losses on Empolyee benefit obligations - - - -

Income tax on other comprehensive income

Items will be reclassified subsequently to profit or loss- Net exchange differences on translation of foreign operations - - - - - -

- Share of other comprehensive income of equity accounted

investees- - - - - -

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

1,533,652 Other comprehensive income for the period, net of tax - - - - - -

2,288,057 Total comprehensive income for the period, net of tax 182,175 254,678 (28) 79,613 191,317 (58)

(559,059) ######



Statements of Comprehensive Income

Company Company


Consolidated Company

Audited Audited Unaudited Unaudited Unaudited Unaudited

as at as at as at as at as at as at

31.03.15 31.03.15 30.09.15 30.09.14 30.09.15 30.09.14

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

(Restated)

ASSETS

Non - current assets

46,163,919 6,654,666 Property, plant & equipment 48,026,850 41,590,643 6,670,487 5,206,656

1,412,822 - Investment Properties 1,409,898 1,453,478 - -

307,476 - Biological assets 312,238 268,141 - -

5,715,803 - Intangible assets 5,785,362 5,655,571 - -

- 9,365,343 Investments in subsidiaries - - 9,381,765 9,039,539

489,096 - Investments in equity accounted investees 1,016,677 349,834 - -

241,478 154,234 Other non current financial assets 509,756 246,810 147,998 160,468

1,022,155 - Other non current assets 239,316 865,674 - -

386,698 - Deferred tax assets 389,197 377,680 - -

55,739,447 16,174,243 Total non-current assets 57,689,294 50,807,831 16,200,250 14,406,663

Current assets

12,617,120 1,854 Inventories 12,612,535 12,141,751 1,826 1,895

- 1,400,260 Amounts due from subsidiaries - - 973,896 930,761

49,854 - Amounts due from equity accounted investees 41,290 11,289 1,038 -

17,859,520 15,302 Trade and other receivables 17,506,247 17,909,318 39,804 15,761

1,273,295 10,036 Other current assets 1,528,552 1,673,733 78,339 32,480

219,469 1,752 Income tax recoverable 161,277 152,490 1,266 1,152

39,562 11,170 Other current financial assets 37,125 59,144 11,111 26,792

2,413,781 546,292 Short-term deposits 1,733,471 1,090,128 - -

3,111,428 39,562 Cash & cash equivalents 3,442,916 2,481,982 66,122 50,698

3,021 - Assets classified as held for sale 8 3,021 3,021 - -

37,587,050 2,026,228 Total current assets 37,066,434 35,522,856 1,173,402 1,059,539

93,326,497 18,200,471 Total assets 94,755,728 86,330,687 17,373,652 15,466,202

EQUITY AND LIABILITIES

1,575,000 1,575,000 Stated capital 7 1,575,000 1,575,000 1,575,000 1,575,000

(148,558) (148,558) Employee share trust loan - (488,261) - (488,261)

1,303,980 13,226 Capital reserves 1,293,125 1,355,732 13,226 13,226

11,573,045 6,314,023 Other components of equity 11,584,927 8,828,372 6,314,023 4,861,023

14,800,483 2,767,884 Revenue reserves 15,419,737 13,114,004 2,504,745 2,187,505

29,103,950 10,521,575

Total equity attributable to

owners of the parent 29,872,791 24,384,847 10,406,994 8,148,493

15,105,525 - Non- controlling interest 15,360,185 13,998,463 - -

44,209,475 10,521,575 Total Equity 45,232,976 38,383,310 10,406,994 8,148,493

Non - current liabilities

12,069,274 5,667,819 Interest bearing borrowings 10,620,783 9,852,132 3,223,169 3,361,809

713,495 - Grants 715,808 735,646 - -

1,363,237 - Deferred tax liability 1,397,666 1,271,041 - -

4,958,643 415,617 Employee benefit obligations 5,180,577 4,899,905 441,836 468,928

19,104,649 6,083,436 Total non-current liabilities 17,914,834 16,758,724 3,665,005 3,830,737

Current liabilities

11,943,409 293,963 Trade and other payables 10,934,054 11,565,393 233,596 324,682

25,479 - Provisions 25,153 46,317 - -

497,790 11,650 Other current liabilities 465,158 408,758 10,984 12,186

15,942 15,942 Other current financial liabilities - 27,497 - 26,252

- 21,597 Amounts due to subsidiaries - - 19,189 9,898

20,888 - Amounts due to equity accounted investees 2,059 10,000 - -

515,624 - Income tax payable 363,589 381,156 - -

3,686,844 1,214,729 Current portion of long term interest bearing

borrowings4,994,816 3,133,693 3,037,884 1,061,610

13,306,065 37,579 Short-term interest bearing borrowings 14,822,757 15,615,507 - 2,052,344

332 -

Liabilities directly associated with

assets classified as held for sale 8 332 332 - -

30,012,373 1,595,460 Total current liabilities 31,607,918 31,188,653 3,301,653 3,486,972

49,117,022 7,678,896 Total liabilities 49,522,752 47,947,377 6,966,658 7,317,709

93,326,497 18,200,471 Total equity and liabilities 94,755,728 86,330,687 17,373,652 15,466,202

(0.07) (0.05) (0.51) (0.02) - (0.19)

It is certified that the Financial Statements have been prepared in compliance with the requirements of the Companies Act no 7 of 2007 .

sgd.

L.D.E.A De Silva

Group Chief Financial Officer

Signed for and on behalf of the Board

sgd. sgd.

A M Pandithage S C Ganegoda

Chairman & Chief Executive Director



Statement of Financial PositionCompany

6th November 2015

Consolidated

The Financial Position as at 30th September, 2015 and Income Statements, Statements of Comprehensive Income, Changes in Equity and Cash Flow for the Six

months then ended are drawn up from the unaudited financial statements of the Company, its Subsidiaries and Equity Accounted Investees and they provide the

information required by the Colombo Stock Exchange.


Statements of Changes in Equity

For the period ended 30th September, 2015

Attributable to owners of the parent

Stated Employee Reserve Other Revalu- Available- Foreign currency General Timber Retained Shareholders' Non-controlling Total

Consolidated capital Share on scrip capital ation for-sale translation reserve reserve earnings Funds interest Equity

Trust Loan ** issue reserve reserve reserve reserve

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

Balance as at 1st April, 2015 1,575,000 (148,558) 816,801 487,179 10,857,027 10,199 705,819 2,216,088 63,387 12,521,008 29,103,950 15,105,525 44,209,475

Profit for the period - - - - - - - - - 1,151,871 1,151,871 915,325 2,067,196


Exchange differences on translation of foreign operations - - - - - - 22,621 - - - 22,621 (41,411) (18,790)

Share of other comprehensive income of equity accounted investees - - - - - - - - - - - - -

Net change in fair value of available-for-sale financial assets - - - - - 2,318 - - - - 2,318 1,415 3,732

Revaluation of land - - - - - - - - - - - - -

Actuarial losses on defined benefit plans - - - - - - - - - - - - -

Deferred tax on other comprehensive income - - - - - - - - - - - - -

Total other comprehensive income - - - - - 2,318 22,621 - - - 24,938 (39,996) (15,058)

Total Comprehensive income for the period - - - - - 2,318 22,621 - - 1,151,871 1,176,809 875,329 2,052,138

Transactions with owners, recorded directly in equity

Dividends to equity holders - - - - - - - - - (450,000) (450,000) (637,422) (1,087,422)

Unclaimed Dividend-write back - - - - - - - - - 4,686 4,686 - 4,686

Recovery for the period - 148,558 - - - - - - - - 148,558 - 148,558

Transfers - - - 3,245 - - - - - (3,245) - -

Total contributions by and distributions to owners - 148,558 - 3,245 - - - - - (448,559) (296,756) (637,422) (934,178)

Changes in ownership interests in subsidiaries

Acquisition of non-controlling interest with a change in control - - - - - - - - - - - - -

Acquisition of non-controlling interest without a change in control - - (14,100) - (13,266) 77 133 2,262 (1) (86,318) (111,213) 16,754 (94,459)

Total changes in ownership interests in subsidiaries - - (14,100) - (13,266) 77 133 2,262 (1) (86,318) (111,213) 16,754 (94,459)

Total transactions with owners - 148,558 (14,100) 3,245 (13,266) 77 133 2,262 (1) (534,878) (407,969) (620,669) (1,028,638)

Balance as at 30th September 2015 1,575,000 - 802,701 490,424 10,843,761 12,594 728,573 2,218,350 63,386 13,138,001 29,872,791 15,360,185 45,232,976

** Employee share trust loan was fully settled during the period by the proceeds of the sale of shares of the Share Trust.

Balance as at 1st April, 2014 1,575,000 (488,261) 816,773 612,907 8,082,601 (4,857) 892,166 2,229,519 50,854 9,956,340 23,723,042 12,614,224 36,337,266

Profit for the period - - - - - - - - - 958,360 958,360 1,070,954 2,029,314


Exchange differences on translation of foreign operations - - - - - - (9,037) - - - (9,037) (1,225) (10,262)

Share of other comprehensive income of equity accounted investees - - - - - - - - - - - - -

Net change in fair value of available-for-sale financial assets - - - - - 12,945 - - - - 12,945 4,316 17,261

Actuarial losses on defined benefit plans - - - - - - - - - (815) (815) (1,242) (2,057)

Deferred tax on other comprehensive income - - - - - - - - - - - - -

Total other comprehensive income - - - - - 12,945 (9,037) - - (815) 3,093 1,849 4,942

Total Comprehensive income for the period - - - - - 12,945 (9,037) - - 957,546 961,454 1,072,803 2,034,256

- -


Dividends to equity holders - - - - - - - - - (375,000) (375,000) (537,511) (912,511)

Recovery for the period - - - - - - - - - - - -

Transfers - - - 6,261 (19,599) - - 5,428 - 7,910 - - -

Total contributions by and distributions to owners - - - 6,261 (19,599) - - 5,428 - (367,090) (375,000) (537,511) (912,511)

Changes in ownership interests in subsidiaries

Acquisition of non-controlling interest with a change in control 426,666 426,666

Acquisition of non-controlling interest without a change in control - - 49,068 (129,277) (24,188) 1 (101,660) 14,319 617 266,472 75,352 422,281 497,633

Total changes in ownership interests in subsidiaries - - 49,068 (129,277) (24,188) 1 (101,660) 14,319 617 266,472 75,352 848,947 924,299

Total transactions with owners - - 49,068 (123,016) (43,787) 1 (101,660) 19,747 617 (100,618) (299,648) 311,436 11,788

Balance as at 30th September 2014 1,575,000 (488,261) 865,841 489,891 8,038,814 8,089 781,469 2,249,266 51,471 10,813,267 24,384,847 13,998,463 38,383,310



Capital Reserves Other Components of Equity Revenue Reserves


Statements of Changes in Equity

For the period ended 30th September, 2015

Capital

Reserve

Other

Component

of Equity

Stated Employee Other Revaluation General Retained Total

capital Share Trust capital reserve reserve earnings

Company Loan reserve

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

Balance as at 1st at April, 2015 1,575,000 (148,558) 13,226 6,314,023 382,087 2,385,797 10,521,575

Profit for the period - - - - - 182,175 182,175


Acturial losses on defined benefit obligations - - - - - -

Revaluation of land - - - - - - -

Total other comprehensive income - - - - - - -

Total Comprehensive income for the period - - - - - 182,175 182,175


Dividends to equity holders - - - - - (450,000) (450,000)

Unclaimed dividend - - - - - 4,686 4,686

Repayment of Employee share trust loan - 148,558 - - - - 148,558

Total contributions by and distributions to owners - 148,558 - - - (445,314) (296,756)

Total transactions with owners - 148,558 - - - (445,314) (296,756)

Balance as at 30th September 2015 1,575,000 - 13,226 6,314,023 382,087 2,122,658 10,406,994

Balance as at 1st at April, 2014 1,575,000 (488,261) 13,226 4,861,023 382,087 1,925,740 8,268,815

Profit for the period - - - - - 254,678 254,678


Acturial losses on defined benefit obligations - - - - - - -

Total other comprehensive income - - - - - - -

Total Comprehensive income for the period - - - - - 254,678 254,678


Dividends to equity holders - - - - - (375,000) (375,000)

Repayment of Employee Share trust Loan - - - - - - -

Total contributions by and distributions to owners - - - - - (375,000) (375,000)

Total transactions with owners - - - - - (375,000) (375,000)

Balance as at 30th September 2014 1,575,000 (488,261) 13,226 4,861,023 382,087 1,805,418 8,148,493



Revenue Reserves



Audited Audited Unaudited Unaudited Unaudited Unauditedas at as at 6 months to 6 months to 6 months to 6 months to

31.03.15 31.03.15 30.09.15 30.09.14 30.09.15 30.09.14Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

(Restated)

Cash flows from operating activities

10,482,200 1,042,650 Cash generated from operations (Note A) 4,846,578 4,307,395 834,065 648,797

(509,685) (25,804) Employee benefit paid (219,603) (262,760) (5,243) (14,410)

(1,341,151) (12,005) Income taxes paid (724,706) (604,642) (19,462) (5,795)

8,631,364 1,004,841 Net cash inflow/(outflow) from operating activities 3,902,269 3,439,993 809,360 628,592

Cash flows from Investing activities

(5,451,733) (64,261) Purchase and construction of property, plant & equipment (2,958,875) (2,705,131) (13,832) (52,274)

(2,331) - Impovements to investment property (180) (1,783) - -

(714,713) - Investments in other non-current assets (19,693) (533,325) - -

(9,285) - Increase due to development of biological assets (4,762) (1,632) - -

25,090 - Government grants received - capital 25,994 25,382 - -

344,469 1,100 Proceeds from disposal of property, plant & equipment 63,916 58,324 3,212 1,081

12,109 - Proceeds from disposal of intangible assets 3,430 - -

- 18,426 Proceeds from disposal of non current financial assets - - - -

- 371,041 Proceeds from disposal of current financial assets - - - 371,041

(147,529) - On acquisition of right to generate hydro power/ ERP System (19,058) (49,534) - -

23,741 - Proceeds from sale of other current financial assets - 6,675 - 1,419

(345) (664,277) Long term investments in group companies and others (121) - (16,423) (340,887)

(7,800) Investment in equity accounted investees - - - -

(669,058) - Acquisition through business combinations (584,821) (699,541) - -

155,689 22,051 Interest received 92,355 73,354 16,404 16,146

18,088 - Dividends received from equity accounted investees 6,683 9,125 - -

83,613 73,876 Dividends received from non-group companies 3,205 112,893 228 73,457

(6,339,994) (242,044) Net cash used in investing activities (3,391,926) (3,705,192) (10,411) 69,983

2,291,370 762,797 Net cash inflow/(outflow) before financing 510,343 (265,199) 798,949 698,575

Cash flows from financing activities

(20,257) - Capital payment on finance lease (15,337) (14,551) - -

339,703 339,703 Recovery of employee share trust loan 148,558 - 148,558 -

(2,129,399) (597,995) Interest paid (including interest capitalized) (998,608) (1,125,788) (305,777) (311,995)

(1,150,814) - Dividend paid to non-controlling interest (637,422) (537,511) - -

215,976 - Proceed from non controlling interest on issues of rights in subsidiary - - - -

6,260,150 3,000,000 Proceeds from interest-bearing borrowings 2,069,273 1,713,620 - -

(3,286,820) (1,120,083) Repayment of interest-bearing borrowings (2,484,448) (1,547,662) (661,850) (570,517)

- Payment of long term loan facility fee 3,177 3,177 - 3,177

(40,000) Debenture redemption

(4,106) (11,604) Debenture Issue fee 4,894 3,657 - 3,657

(42,711) (51,067) Forward contract liability payment (15,942) (63,004) (12,033) (51,066)

(375,000) (375,000) Dividends paid to equity holders of parent (450,000) (375,000) (450,000) (375,000)

(233,279) 1,183,954 Net cash inflow/(outflow) from financing activities (2,375,856) (1,943,062) (1,281,102) (1,301,744)

2,058,091 1,946,751 Net increase/(decrease) in cash and cash equivalents (1,865,513) (2,208,261) (482,153) (603,169)

(9,837,833) (1,398,476) Cash and cash equivalents at beginning of the year/period (7,779,742) (9,834,021) 548,275 (1,398,477)

Cash and cash equivalents at end of the

(7,779,742) 548,275 year/period (Note B) (9,645,255) (12,042,282) 66,122 (2,001,646)

(0.33) 0.36 0.30 (0.00) (0.36) -

Net cashflows related to discontinued operation, shown in note 8, discontinued operation

0




Cash Flow Statements



Audited Audited Unaudited Unaudited Unaudited Unauditedas at as at 6 months to 6 months to 6 months to 6 months to

31.03.15 31.03.15 30.09.15 30.09.14 30.09.15 30.09.14Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

(Restated)

A. Cash generated from operations

6,399,915 762,970 Profit before tax 2,719,674 2,707,599 202,123 257,633

Adjustments for:

2,135,014 560,088 Net finance expense 1,083,091 981,021 315,286 257,942

(24,383) Share of profits from equity accounted investees (168,966) (12,330) -

2,433,786 32,624 Depreciation on property, plant & equipment 1,210,083 1,173,565 16,874 15,649

5,998 - Depreciation on investment property 3,103 1,746 - -

16,520 - Impairement of property, plant & equipment 25,209 - -

(31,682) - Change in fair value of biological assets - - - -

(25,093) (60) (Gain)/loss on the disposal of property, plant & equipment (24,674) 271 (376) 533

(1,253) (23,471) (Gain)/loss on the disposal long term investment - - - (23,421)

- - (Gain)/loss on the disposal of current financial assets - (284) - -

120,803 - Amortisation of intangible assets 69,996 59,296 - -

- - Impairement of intangible assets - - -

- (77,465) Scrip dividend - - - -

(110,231) - Net gains/(loss) on translation of foreign currency (171,726) 19,013 - -

- - Differences of exchange on translation of foreign entities 303,264 436,113 - -

(40,814) - Impairment of trade & other receivables - - - -

(2,873) - Provision for unrealised profit and write-down of inventories - - - -

42,981 - Impairment of other non current assets 7,092 18,073 - -

813,861 71,513 Provision for post employee benefits obligations 456,751 527,193 33,800 32,778

(53,673) - Government grants amortised (23,680) (31,813) - -

75,000 Provision for fall in value of investment - - -

11,678,875 1,401,199 5,489,217 5,879,463 567,707 541,114

(159,468) (314,511) (Increase)/decrease in trade and other receivables 361,784 (1,011,194) 327,502 132,018

(494,976) (808) (Increase)/decrease in inventories 70,377 (33,375) 28 (849)

(542,231) (43,230) Increase/(decrease) in trade and other payables (1,074,800) (527,499) (61,172) (23,486)

10,482,200 1,042,650 4,846,578 4,307,395 834,065 648,797

B. Analysis of cash and cash equivalents

3,112,543 39,562 Cash & cash equivalents 3,444,031 2,483,097 66,122 50,698

2,413,781 546,292 Short - term deposits 1,733,471 1,090,128 - -

5,526,324 585,854 5,177,502 3,573,225 66,122 50,698

(13,306,065) (37,579) Short-term interest bearing borrowings (14,822,757) (15,615,507) - (2,052,344)

(7,779,742) 548,275 Cash and cash equivalents at the end of the period (9,645,255) (12,042,282) 66,122 (2,001,646)

* Includes discontinued operations.

Cash Flow Statements


* * *


1

2

3

4

The Consolidated Financial Statements for the comparative interim period have been restated in accordance with LKAS 8- Accounting Policies, changes in Accounting Estimates and Errors which were disclosed in the Annual Report for the year ended 31.03.2015.

Except for following, no circumstances have arisen since the reporting date, which would require adjustments to or disclosure in the

financial statements.

As per Finance Bill passed on 20th October , 2015 and certified 30th October, 2015, where the aggregate profits (as per audited

financial statement) of subsidiaries and the holding company, within a Group of Companies, exceed Rs.2Bn for the Year of

assessment 2013/14, each Company of such Group is liable to pay a levy known as Super Gains Tax which is 25% of the taxable

income of such company for the Year of assessment 2013/14. Accordingly the Super Gains Tax liability has been estimated at Rs.

939.7 Mn and Rs. 7.6Mn for the Group and Hayleys PLC respectively.

Notes to the Financial Statements

The Interim Condensed Financial Statements have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34- Interim

Financial Reporting. These Interim Condensed Financial Statements should be read in conjunction with the Annual Financial

Statements for the year ended 31st March 2015.

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 31.03.2015.

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 year.

The Interim Condensed Financial Statements have been prepared on a historical cost basis, except for, land ,Biological assets and

financial instruments.The Interim Condended Financial Statements also provide information required by the Colombo Stock Exchange.


5 INDUSTRY SEGMENT REVENUE

Consolidated

Total Intra-group

Unaudited Unaudited

6 months to 6 months to

30.09.15 30.09.14

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

(Restated)

Global Markets & Manufacturing4,418,595 Fibre 2,189,132 214,893 1,974,239 2,286,878

14,970,312 Hand Protection 6,186,814 - 6,186,814 7,207,237 11,933,848 Purification Products 5,509,744 - 5,509,744 5,204,275

8,542,539 Textiles 4,324,901 - 4,324,901 4,241,185 3,377,156 Construction Materials 1,848,619 - 1,848,619 1,487,049

Agriculture and Plantations - 8,423,938 Agriculture 4,949,263 198,180 4,751,083 3,089,075

12,678,649 Plantations 4,921,669 213,300 4,708,369 7,839,254 -

14,181,331 Transportation & Logistics 7,329,695 - 7,329,695 7,093,899 -

5,184,704 Consumer Products 2,702,837 - 2,702,837 2,533,338 Power and Energy -

2,257,496 Industry Inputs 1,292,738 5,630 1,287,108 1,118,031 988,034 Power & Energy 646,666 - 646,666 643,761

- 4,846,799 Leisure and Aviation 2,483,145 - 2,483,145 2,351,809

- 758,464 Investments and Services 503,556 237,254 266,302 351,060

92,561,865 44,888,779 869,257 44,019,522 45,446,851

92,561,865 44,019,522 45,446,851

Consolidated

Audited

year ended

31.03.15

External


Notes to the Financial Statements6 INDUSTRY SEGMENT RESULTS

Consolidated Consolidated Consolidated

Audited Unaudited Unaudited

year ended 6 months to 6 months to31.03.15 30.09.15 30.09.14

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

(Restated)

Global Markets & Manufacturing 65,843 Fibre 71,041 96,732 1,553,944 Hand Protection 356,157 766,660 1,304,071 Purification Products 530,005 403,216

222,357 Textiles 213,879 128,264 624,655 Construction Materials 287,924 247,108

Agriculture and Plantations 1,038,627 Agriculture 454,783 308,624 566,124 Plantations (54,843) 260,680 1,346,967 Transportation & Logistics 750,197 530,789 139,845 Consumer Products 65,707 77,107

Power and Energy244,722 Industry Inputs 158,754 125,993 671,345 Power & Energy 456,442 484,283

806,276 Leisure and Aviation 416,822 345,707 1,393,553 Investments & Services 498,263 483,861

9,978,329 Segment results 4,205,131 4,259,024 (1,467,783) Non - segment income/(expenses) (571,332) (582,734)

8,510,546 Operating profit 3,633,799 3,676,290 (2,135,014) Net finance costs (1,083,091) (981,021)

24,383 Share of profits from equity accounted investees 168,966 12,330

6,399,915 Profit before tax 2,719,674 2,707,599 6,399,915 2,719,674 2,707,599

- - (0)

7 STATED CAPITAL

Audited Unaudited Unauditedas at as at as at

31.03.15 30.09.15 30.09.14 Rs.'000 Rs.'000 Rs.'000

Issued and fully paid 1,575,000 75,000,000 (75,000,000 - 30.09.2014) Ordinary Shares 1,575,000 1,575,000


Notes to the Financial Statements

8 Assets and Liabilities of discontinued operationsAudited Unaudited Unaudited

as at as at as at31.03.15 30.09.15 30.09.14

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

Assets classified as held for sale1,906 Trade and Other Recievable 1,906 1,906 1,115 Cash in Hand and at Bank 1,115 1,115 3,021 Total assets 3,021 3,021

Liabilities directly associated with assets classified as held for sale332 Trade and other payables 332 332 332 Total equity and liabilities 332 332

Cash Flow related to discontinued operations

Audited Unaudited Unaudited

as at as at as at

31.03.15 30.09.15 30.09.14

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

- Net cash flows from operating activities - - - Net cash out flow from discontinuing operation - -


Reconciliation of Income Statement

Previously

reported

Effect of

Transition to

SLFRS 11

Restated

Unaudited Unaudited Unaudited

6 months to 6 months to 6 months to

30.09.14 30.09.14 30.09.14

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

Revenue 45,496,469 (49,618) 45,446,851

Cost of sales (35,573,503) 32,142 (35,541,361)

Gross profit 9,922,966 (17,476) 9,905,490

Other income 228,551 976 229,527

Distribution expenses (1,383,049) 24,029 (1,359,020)

Administrative expenses (5,019,856) (17,572) (5,037,428)

Other expenses (62,279) - (62,279)

Results from operating activities 3,686,333 (10,043) 3,676,290

Finance Income 276,288 (5,983) 270,305

Finance Costs (1,252,992) 1,666 (1,251,326)

Net finance costs (976,704) (4,317) (981,021)

Share of profit from equity accounted (1,461) 13,791 12,330

investees ( net of tax)Profit before tax 2,708,168 (569) 2,707,599

Tax expense (678,854) 569 (678,285)

Profit for the period 2,029,314 - 2,029,314

Attributable to:Owners of the parent 958,360 - 958,360

Non-Controlling interest 1,070,954 - 1,070,954

2,029,314 - 2,029,314

Consolidated


Reconciliation of Statement of Comprehensive Income

Previously

reported

Effect of

Transition to

SLFRS 11

Restated


6 months to 6 months to 6 months to

30.09.14 30.09.14 30.09.14

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

Profit for the Period 2,029,314 - 2,029,314


Net exchange differences on translation of foreign operations (10,262) - (10,262)

Share of other comprehensive income of equity accounted investees - - -

Net change in fair value of available-for-sale financial assets 17,261 - 17,261

Actuarial losses on defined benefit plans (2,057) - (2,057) Deferred tax on other comprehensive income - - -

Other comprehensive income for the period, net of tax 4,942 - 4,942

Total comprehensive income for the period, net of tax 2,034,256 - 2,034,256

Attributable toOwners of the parent 961,453 - 961,453 Non- Controlling Interest 1,072,803 - 1,072,803

2,034,256 - 2,034,256

Consolidated


Reconciliation of Financial Position

Previously

reported

Effect of

Transition to

SLFRS 11

Restated


as at as at as at

30.09.14 30.09.14 30.09.14

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

ASSETS

Non - current assets

Property, plant & equipment 41,596,654 (6,011) 41,590,643

Investment Properties 1,453,478 - 1,453,478

Biological assets 268,141 - 268,141

Intangible assets 5,655,571 - 5,655,571

Investments in subsidiaries - - -

Investments in equity accounted investees 236,750 113,084 349,834

Other non current financial assets 336,456 (89,646) 246,810

Other non current assets 865,674 - 865,674

Deferred tax assets 393,708 (16,028) 377,680

Total non-current assets 50,806,432 1,399 50,807,831

Current assets

Inventories 12,156,680 (14,929) 12,141,751

Amounts due from subsidiaries - - -

Amounts due from equity accounted investees 9,086 2,203 11,289

Trade and other receivables 17,968,757 (59,439) 17,909,318

Other current assets 1,679,441 (5,708) 1,673,733

Income tax recoverable 152,490 - 152,490

Other current financial assets 59,144 - 59,144

Short-term deposits 1,090,128 - 1,090,128

Cash & cash equivalents 2,484,188 (2,206) 2,481,982

Assets classified as held for sale 3,021 - 3,021

Total current assets 35,602,935 (80,079) 35,522,856

Total assets 86,409,367 (78,680) 86,330,687

EQUITY AND LIABILITIES

Stated capital 1,575,000 - 1,575,000

Employee share trust loan (488,261) - (488,261)

Capital reserves 1,355,732 - 1,355,732

Other components of equity 8,828,372 - 8,828,372

Revenue reserves 13,114,004 - 13,114,004 Total equity attributable to

owners of the parent 24,384,847 - 24,384,847

Non- controlling interest 13,998,463 - 13,998,463

Total Equity 38,383,310 - 38,383,310

Non - current liabilities

Interest bearing borrowings 9,895,163 (43,031) 9,852,132

Grants 735,646 - 735,646

Deferred tax liability 1,271,080 (39) 1,271,041

Employee benefit obligations 4,899,905 - 4,899,905

Total non-current liabilities 16,801,794 (43,070) 16,758,724

Current liabilities

Trade and other payables 11,586,390 (20,997) 11,565,393

Provisions 46,317 - 46,317

Other current liabilities 409,755 (997) 408,758

Other current financial liabilities 27,497 - 27,497

Amounts due to subsidiaries - - -

Amounts due to equity accounted investees 10,000 - 10,000

Income tax payable 381,352 (196) 381,156

Current portion of long term interest

bearing borrowings3,147,113

(13,420) 3,133,693

Short-term interest bearing borrowings 15,615,507 - 15,615,507 Liabilities directly associated with

assets classified as held for sale 332 - 332

Total current liabilities 31,224,263 (35,610) 31,188,653

Total liabilities 48,026,057 (78,680) 47,947,377

Total equity and liabilities 86,409,367 (78,680) 86,330,687

(0.02) - (0.02)

Consolidated


MARKET VALUE OF SHARESThe market value of an ordinary share of Hayleys PLC was as follows:

30.09.2015 30.09.2014Rs. Rs.

Closing price on 326.20 360.00 Highest price recorded for the three months ending 365.00 365.00 Lowest price recorded for the three months ending 322.10 286.50 Market capitalisation (Rs. Mn.) 24,465 27,000

RATIOSNet assets per share 398.30 325.13 Price earnings ratio (times) (Annualised) 10.62 14.09

DIVIDEND PAYMENTFirst and Final dividend 2014/15 Rs 6.00 per share paid on 08th July, 2015

SHARE TRADING FROM 1ST

APRIL, 2015 TO 30 SEPTEMBER, 2015No. of transactions 3,785 No. of shares traded 2,378,496 Value of shares traded (Rs.) 807,399,565

LISTED DEBENTURESDetails regarding the listed debentures are as follows;DEBENTURE 1 -Listed, rated, senior, unsecured, redeemable Debentures at 14.25% p.a. payable quarterly and redeemable on 9th July, 2016Interest rate of comparable Government Securities as at 30th September, 2015, 7.50% (Net of tax)

DEBENTURE TRADING INFORMATION FOR THE THREE MONTHS ENDED - 30.09.2015No. of Transactions 1 No. of Debentures traded 3,000 Highest Price 1,056.22 Lowest Price 1,056.22 Last Traded Price 1,056.22

Interest yield 13.48%Yield to maturity 8.27%

DEBENTURE 2 -Listed, rated, unsecured, redeemable Debentures at 7.60% p.a. payable semi annually and redeemable on 6th March, 2019Interest rate of comparable Government Securities as at 30th September, 2015, 9.26% (Net of tax)

DEBENTURE TRADING INFORMATION FOR THE THREE MONTHS ENDED - 30.09.2015There were no transactions during the period.

DEBENTURE 3 -Listed ,rated, unsecured, redeemable Debentures at 7.85% p.a. payable semi annually and redeemable on 6th March, 2020Interest rate of comparable Government Securities as at 30th September, 2015, 9.37% (Net of tax)

DEBENTURE TRADING INFORMATION FOR THE THREE MONTHS ENDED - 30.09.2015There were no transactions during the period.

RATIOS 30.09.2015 30.09.2014

Debt/ equity ratio 0.60 0.79 Quick asset ratio 0.35 0.30 Interest cover 1.65 1.62

Investor Information


FIRST TWENTY SHAREHOLDERS AS AT 30TH SEPTEMBER, 2015

No.of Shares %1 Mr.K.D.D.Perera 31,699,599 42.27

SBL/ Mr.K.D.D.Perera 3,400,000 4.53 2 Trustees of the D.S.Jayasundera Trust 8,698,017 11.60 3 Employees Provident Fund 3,790,505 5.05 4 Vallibel One PLC 2,182,584 2.91 5 Lanka Orix Leasing Company PLC 1,700,004 2.27 6 Hayleys Group Services(Private) Ltd No.02 A/C 1,117,090 1.49 7 Mrs.A.M.L.Johnpulle & Mr.B.J.M.Johnpulle 907,165 1.21 8 Commercial Leasing & Finance PLC 734,144 0.98 9 Mrs.R.N.Ponnambalam 581,245 0.77

10 Mrs.R.M.Spittel 564,697 0.75 11 Mrs.F.C.Phillips & Mr.R.H.S.Phillips 493,142 0.66 12 Mrs.Y.M.Spittel 465,561 0.62 13 Mr.A.C Wikramanayake 462,204 0.62 14 Mrs.P.M Godamunne 443,447 0.59 15 Mrs.S.D. Wickramasinghe . 440,281 0.59 16 Mr.G.N. Wikramanayake 370,422 0.49 17 Sri Lanka Insurance Corporation Ltd-Life Fund 347,162 0.46 18 Mr.N.K.A.D.De Silva 298,540 0.40 19 Mrs. L. Sivagurunathan 284,805 0.38 20 Miss.N.K.R.H.De Silva 283,401 0.38

Total 59,264,015 79.02

There were no non voting shares as at 30th September, 2015

Total number of Shareholders representing the Public Holding is 7,322

DIRECTORS’ SHAREHOLDINGS AS AT 30TH SEPTEMBER, 2015

Name of the Director No.of Shares Mr. A M Pandithage 125,357 Mr. K D D Perera 37,283,849 *Mr. M R Zaheed 58,395 Mr W D N H Perera 11 Mr S C Ganegoda 23,414 Mr H S R Kariyawasan 9,427 Dr K I M Ranasoma 9,634 Mr L T Samarawickrama 7,488 Mr M D S Goonatilleke 10,000 Mr L R V Waidyaratne 37,930

* Inclusive of indirect holding through other companies in which he owns controlling interest.

Name of the Shareholder

Directors' holdings of ordinary shares in the Company were as follows

The Public Holding percentage , as defined under Colombo Stock Exchange rules, was 38.32% as at

30th September 2015.

Investor Information


NAME OF COMPANY AUDIT COMMITTEE

Hayleys PLC M.D.S Goonatilleke – Chairman

W D N H Perera

Dr H Cabral, PC

M H Jamaldeen

COMPANY NUMBER

PQ 22

REMUNERATION COMMITTEE

STOCK EXCHANGE LISTING Dr H Cabral, PC – Chairman

K D D Perera

W D N H Perera

M D S Goonatilleke

REGISTERED OFFICE M H Jamaldeen

Hayley Building,

P.O. Box 70, 400, Deans Road,

Colombo 10, Sri Lanka NOMINATION COMMITTEE

Telephone: (94-11)2627000 A M Pandithage – Chairman

Facsimile: (94-11)2699299 K D D Perera

Website: http://www.hayleys.com W D N H Perera

Dr H Cabral, PC

DIRECTORS

A M Pandithage – Chairman & Chief Executive

K D D Perera - Co-Chairman (Non - Executive) RELATED PARTY TRANSACTION REVIEW COMMITTEE

M R Zaheed Dr H Cabral, PC - Chairman

W D N H Perera S C Ganegoda

S C Ganegoda M D S Goonatilleke

H S R Kariyawasan

Dr. H Cabral, PC

L.T Samarawickrama SECRETARIES

Dr. K I M Ranasoma Hayleys Group Services (Private) Limited

M D S Goonatilleke 400, Deans Road, Colombo 10, Sri Lanka

L R V Waidyaratne Telephone: (94-11)2627650

M H Jamaldeen Facsimile: (94-11)2627645

E-mail: [email protected]

Please direct any queries about the

administration of shareholdings to the Company Secretaries

GROUP MANAGEMENT COMMITTEE INVESTOR RELATIONS

A M Pandithage – Chief Executive Please contact Strategic Business Development Unit

M R Zaheed Telephone: (94-11)2627662

S C Ganegoda E-mail: [email protected]

H S R Kariyawasan

Dr. K I M Ranasoma

L T Samarawickrama

L R V Waidyaratne

H C S Mendis

S J Wijesignhe

Dr A Sivagananathan

L D E A De Silva

W G R Rajadurai

E R P Goonethileke

Ms. D S Amerasinghe (resigned w.e.f 31.10.2015)

Corporate Information

(A public limited company, incorporated in Sri Lanka in 1952)

The ordinary shares of the Company are listed

with the Colombo Stock Exchange of Sri Lanka


hayleys plc · 2016. 9. 29. · company audited unaudited unaudited unaudited unaudited year ended...

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