serendib engineering group plc

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-13572.5

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-488176

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70.11

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SERENDIB ENGINEERING GROUP PLCPQ 230

INTERIM FINANCIAL STATEMENTSFOR THE QUARTER ENDED 31ST DECEMBER 2016

SERENDIB ENGINEERING GROUP PLCPQ 230

INTERIM FINANCIAL STATEMENTSFOR THE QUARTER ENDED 30TH SEPTEMBER 2021

SERENDIB ENGINEERING GROUP PLC

Serendib Engineering Group PLC l Interim Financial Statements

Table of Contents

1. Corporate Information………………………………………………………………………………………………………………………………………………………………………….1

2

2.1 Statement of Comprehensive Income - Group ...............................................................................................................22

2.2 Statement of Financial Position - Group .........................................................................................................................33

2.3 Cash Flow Statement - Group .......................................................................................................................5

2.4 Statement of Changes in Equity – Group ........................................................................................................................7

3. Company Financials ...............................................................................................................................................................8

3.1 Statement of Comprehensive Income – Company.........................................................................................8

3.2 Statement of Financial Position- Company ....................................................................................................9

3.3 Cash Flow Statement – Company .................................................................................................................11

3.4 Statement of Changes in Equity – Company..................................................................................................12

4. Notes to the Financial Statements…................................................................................................................................13

5. Shareholder Information ................................................................................................................................................14

5.1 Major Shareholders Details..........................................................................................................................14

5.2 Public Shareholdings ......................................................................................................................................14

5.3 CEO’s and Directors Shareholdings ...............................................................................................................15

5.4 Share price Information.................................................................................................................................15

2. Group Financials ...........................................................................................................................................................................

Serendib Engineering Group PLC l Interim Financial Statements

1. Corporate Information

REGISTRATION NUMBER PQ 230

No.20,Cotta Road

Colombo 8

ACCOUNTING YEAR END 31st March

Mr.S.A.B.Herath - Director / CEO

Mr.N.D.Rathnayaka-Independent Non Executive Director

Mr.G.T.Jayaseelan-Non Executive Director

Mr.Vaitheswarn Rajarajan-Independent Non Executive Director

Mr.Kathirgamar Sivaskantharajah-Independent Non Executive Director

Serendib Investment Holdings Limited

Serendib Engineering & Agencies (Pvt) Limited

CCC Plantation Engineering Limited

S S P Corporate Secretarial (Pvt) Limited

No.101, Inner Flower Road,

Colombo 03

V. S. & Associates

Chartered Accountants

20/62, Fairfield Gardens

Colombo- 08

Sampath Bank PLC

National Development Bank PLC

Pan Asia Banking Corporation PLC

Bank Of Ceylon

Seylan Bank PLC

SECRATARIES

AUDITORS

BANKERS

NAME OF THE COMPANY Serendib Engineering Group PLC

LEGAL FORMA Public Company with Limited Liability incorporated on 7th September

1992, and re-registered under the Companies Act 07 of 2007. Listed on the

Diri Savi Board of the Colombo Stock Exchange.

REGISTERED OFFICE

SUBSIDIARIES

Serendib Engineering Group PLC l Interim Financial Statements1 I page

2. Group Financials

2.1 Statement of Comprehensive Income - Group

GROUP

Year ended

31st March

2021 2020 2021 2020 2021

Unaudited Unaudited Unaudited Unaudited Audited

Rs. Rs. Rs. Rs. Rs.

Revenue 15,770,843 11,383,290 28,473,392 13,928,498 58,634,480

Cost of sales (14,529,683) (10,875,682) (24,671,262) (15,390,424) (41,862,712)

Gross profit 1,241,160 507,608 3,802,129 (1,461,926) 16,771,768

Other income - - 80,353 189,826 274,874

Administration expenses (15,651,380) (16,104,062) (31,243,707) (29,541,436) (65,652,271)

Other Expenses - - - -

Profit from operating activities (14,410,221) (15,596,454) (27,361,225) (30,813,535) (48,605,629)

Finance income 75,838 90,639 130,541 177,318 262,815

Finance expenses (2,271,445) (3,246,462) (5,167,517) (6,578,257) (13,377,721)

Profit/(Loss) from ordinary activities before taxation (16,605,828) (18,752,278) (32,398,201) (37,214,474) (61,720,535)

Taxation - - - - 13,432

Profit/(Loss) for the period (16,605,828) (18,752,278) (32,398,201) (37,214,474) (61,707,103)

Total comprehensive income/Expense (16,605,828) (18,752,278) (32,398,201) (37,214,474) (61,707,103)

Other Comprehensive Income/(Expense)

Acturial Gain/Loss on Employee Benefit Obligation - - - - (972,969)

Total Other Comprehensive Income/(expense) for the period - - - - (972,969)

Total Comprehensive Income/(Expense) for the period (16,605,828) (18,752,278) (32,398,201) (37,214,474) (62,680,072)

Profit/(Loss) Attributable to

Equity holders of the parent company (15,737,753) (17,684,308) (30,639,032) (35,085,955) (58,327,261)

Non-controlling interest (868,074) (1,067,970) (1,759,169) (2,128,519) (3,379,842)

(16,605,828) (18,752,278) (32,398,201) (37,214,474) (61,707,103)

Total Comprehensive Income/(expense) attributable to

Equity holders of the parent company (15,737,753) (17,684,308) (30,639,032) (35,085,955) (59,244,090)

Non controlling Interest (868,074) (1,067,970) (1,759,169) (2,128,519) (3,435,982)

Total comprehensive income/(expense) for the period (16,605,828) (18,752,278) (32,398,201) (37,214,474) (62,680,072)

Basic Earnings per share (Rs) (0.49) (0.55) (0.95) (1.08) (1.80)


STATEMENT OF COMPREHENSIVE INCOME

Quarter ended

30th September

Six Months Ended 30th

September


2.2 Statement of Financial Position - Group

`

Year ended

31st March

2021 2020 2021

Unaudited Unaudited Audited

Rs. Rs. Rs.

ASSETS

NON - CURRENT ASSETS

Property plant & equipment 7,811,452 5,819,732 8,171,707

Intangible assets 470,074 556,644 667,299

Deferred tax asset - - -

TOTAL NON - CURRENT ASSETS 8,281,525 6,376,376 8,839,006

CURRENT ASSETS

Inventories 24,187,515 15,960,104 22,007,963

Trade & other receivables 66,263,742 90,222,814 64,620,042

Other Financial assets 6,399,697 4,000,000 4,274,766

Cash and cash equivalents 1,106,871 2,028,628 8,391,714

TOTAL CURRENT ASSETS 97,957,825 112,211,546 99,294,485

TOTAL ASSETS 106,239,351 118,587,922 108,133,491

EQUITY & LIABILITIES

Equity Attributable to the Equity Holders of the Parent

Stated capital 178,107,910 178,107,910 178,107,910

Retained earnings (322,929,973) (268,132,806) (292,290,941)

SHAREHOLDERS' FUNDS (144,822,063) (90,024,896) (114,183,031)

Non-controlling interest (15,095,006) (12,028,374) (13,335,837)

TOTAL EQUITY (159,917,069) (102,053,270) (127,518,868)

NON - CURRENT LIABILITIES

Retirement benefit obligations 6,111,947 4,901,207 6,053,947

Deferred tax liabilities 4,120 17,552 4,120

Interest Bearing Borrowings 30,434,655 - 38,750,430

TOTAL NON - CURRENT LIABILITIES 36,550,722 4,918,759 44,808,497

CURRENT LIABILITIES

Trade & other payables 149,712,859 139,357,854 121,052,982

Interest Bearing Borrowings 45,804,695 45,097,415 41,474,575

Income tax liabilities 129,106 129,108 129,108

Bank overdrafts 33,959,037 31,138,055 28,187,197

TOTAL CURRENT LIABILITIES 229,605,698 215,722,433 190,843,862

TOTAL EQUITY & LIABILITIES 106,239,351 118,587,922 108,133,491

Net asset per share (Rs.) (4.47) (2.78) (3.53)


STATEMENT OF FINANCIAL POSITION - GROUP

Quarter ended

30th September


Notes:

1. The above figures subject to audit.

………………………………………

S.A.B.Herath

Chief Executive Officer

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

Approved and signed for and on behalf of the Board by,

……………………………………. …………………………………….

G.T.Jeyaseelan N.D.Rathnayaka

Director Director

Colombo

29th Oct 2021

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

2007.

3. These financial statements have been prepared in accordance with SLFRS/LKAS 34-Interim Financial Reporting.

2. The Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 07

of 2007 and Listing Rules of the Colombo Stock Exchange.

5. There were no changes to the Accounting Policies and methods of computation since the publication of Annual

Report for the Year ended 31st March 2021.

4. In preparing the financial statements of Serendib Engineering Group PLC for the quarter ended 30th September

2021, a full provision of Rs.146,737,890/- has been made as follows.

Provision against the related party receivables in Subsidiaries .

From Serendib Engineering & Agencies (Pvt) Limited Rs.61,537,890/-

From Serendib Investment Holdings Limited Rs.85,200,000/-

Serendib Engineering Group PLC l Interim Financial Statements 4 I page

2.3 Cash Flow Statement - Group

2021 2020 2021


Rs. Rs. Rs.

Cash flows from operating activities

Net profit / (loss) before interest & taxation (27,361,225) (30,813,535) (51,935,626)

Adjustment for

Depreciation & Amortization 1,208,479 6,243,905 2,740,221

Gratuity Provision / (Reversal) 582,000 300,000 1,182,121

Exchange Fluctuation on Interest Bearing Borrowings - - 2,818,500

Revaluation of PPE - (4,630,551) -

Operating profit/ (loss) before working capital changes (25,570,747) (28,900,181) (45,194,784)

Changes in working capital

(Increase) / decrease in inventories (2,179,552) 4,371,649 (1,676,210)

(Increase) / decrease in trade and other receivables (1,643,700) 46,293,955 71,896,727

Increase / (decrease) in trade and other payables 28,659,877 (3,370,001) (21,674,873)

Cash generated from / (used in) operating activities (734,121) 18,395,422 3,350,860

Interest paid (5,167,517) (6,578,255) (10,047,724)

Gratuity Paid (524,000) (651,751) (1,354,100)

Net cash flow from / (used in) operating activities (6,425,638) 11,165,416 (8,050,964)

Cash flow from / (used in) investing activities

Purchase of Plant & Equipment (651,000) (13,320) (3,325,167)

Purchase of Intangible assets - - (277,649)

Investment in Fixed Deposits (2,124,931) - (274,766)

Interest received 130,541 177,318 262,815

Finance Lease Repayment

Net cash flow from / (used in) investing activities (2,645,390) 163,998 (3,614,766)


CASH FLOW STATEMENT - GROUP

Period ended 30th September


Rs. Rs. Rs.

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Interest Bearing Borrowings 15,105,077 25,570,982 102,977,485

Repayment of Interest Bearing Borrowings (19,090,731) (34,800,761) (79,898,175)

Finance Lease Payment - - -

Net Cash Flows from / (used in) Financing Activities (3,985,654) (9,229,779) 23,079,310

Net increase / (decrease ) in cash & cash equivalents (13,056,683) 2,099,636 11,413,579

Cash & cash equivalents at the beginning of the year (19,795,483) (31,209,062) (31,209,062)

Cash & cash equivalents at the end of the period (Note: A) (32,852,166) (29,109,428) (19,795,483)

Note: A

Cash & cash equivalents at the end of the period

Savings Accounts 536,304 1,017,471 2,092,116

Cash in hand & at bank 570,568 1,011,157 6,299,598

Bank overdraft (33,959,037) (31,138,055) (28,187,197)

(32,852,166) (29,109,428) (19,795,483)


2.4 Statement of Changes in Equity – Group

Description Stated Capital Retained

Earnings Total

Non-

Controlling

Interest

Total Equity

Rs. Rs. Rs. Rs. Rs.

Balance as at 01st April, 2021 178,107,910 (292,290,941) (114,183,031) (13,335,837) (127,518,868)

Net Profit/ (Loss) for the period (30,639,032) (30,639,032) (1,759,169) (32,398,201)

Balance as at 30th September, 2021 178,107,910 (322,929,973) (144,822,063) (15,095,006) (159,917,069)

Balance as at 01st April, 2020 178,107,910 (233,046,851) (54,938,941) (9,899,855) (64,838,796)

Net Profit/ (Loss) for the Period (35,085,955) (35,085,955) (2,128,519) (37,214,474)

Balance as at 30th September, 2020 178,107,910 (268,132,806) (90,024,896) (12,028,374) (102,053,270)


STATEMENT OF CHANGES IN EQUITY - GROUP


3. Company Financials

3.1 Statement of Comprehensive Income – Company

Year Ended

31st March

2021 2020 2021 2020 2021

Unaudited Unaudited Unaudited Unaudited Unaudited

Revenue - - - - -

Cost of Sales - - - - -

Gross Profit - - - - -

Other Income - - - - -

Administration Expenses (1,552,164) (168,431) (2,011,568) (320,413) (3,708,707)

Other Expenses - - - - -

Profit from Operating Activities (1,552,164) (168,431) (2,011,568) (320,413) (3,708,707)

Finance Income/(Loss) 46 62 92 130 231

Finance Expenses - - - - -

Profit from Ordinary Activities

before Taxation(1,552,118) (168,369) (2,011,476) (320,283) (3,708,476)

Taxation - - - - 13,432

Profit/(Loss) for the period (1,552,118) (168,369) (2,011,476) (320,283) (3,695,044)

Total Comprehensive Income (1,552,118) (168,369) (2,011,476) (320,283) (3,695,044)

Basic earnings per share (Rs.) (0.05) (0.01) (0.06) (0.01) (0.11)


STATEMENT OF COMPREHENSIVE INCOME - COMPANY

Quarter Ended

30th September

Period Ended

30th September


3.2 Statement of Financial Position- Company

2021 2020 2021


Rs. Rs. Rs.

ASSETS

NON - CURRENT ASSETS

Property Plant & Equipment - - 17,165

Investments in Subsidiaries - - -

Total Non Current Asset - - 17,165

CURRENT ASSETS

Inventories 125,755 125,755 125,755

Trade & Other Receivables 63 63 63

Amounts Due from Related Parties - - -

Deferred Tax Asset -

Cash and Cash Equivalents 123,588 123,394 123,496

Total Current Asset 249,406 249,212 249,314

TOTAL ASSETS 249,406 249,212 266,479

EQUITY & LIABILITIES

Equity Attributable to the Equity Holders of the Parent

Stated Capital 178,107,910 178,107,910 178,107,910

Retained Earnings (218,508,087) (213,121,851) (216,496,611)

SHAREHOLDERS' FUNDS (40,400,177) (35,013,941) (38,388,701)

TOTAL EQUITY (40,400,177) (35,013,941) (38,388,701)

NON - CURRENT LIABILITIES

Deferred Tax Liability 4,120 17,552 4,120

TOTAL NON - CURRENT LIABILITIES 4,120 17,552 4,120

CURRENT LIABILITIES

Trade & Other Payables 7,416,564 5,338,478 7,440,406

Amounts Due to Related Parties 33,228,898 29,907,122 31,210,654

40,645,462 35,245,601 38,651,060

Total Equity & Liability 249,406 249,212 266,479

Net Assets Per Share (Rs.) (1.25) (1.08) (1.19)

STATEMENT OF FINANCIAL POSITION - COMPANY


Year Ended 31st

March As at 30th September


Notes:

1. The above figures are subject to audit.

………………………………………

S.A.B.Herath

Chief Executive Officer

……………………………………. …………………………………….

G.T.Jeyaseelan N.D.Rathnayaka

Director Director

Colombo

29th Oct 2021

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

statements.Approved and signed for and on behalf of the Board by,

2. The Financial Statements have been prepared in compliance with the requirements of the

Companies Act No. 07 of 2007 and Listing Rules of the Colombo Stock Exchange.

3. These financial statements have been prepared in accordance with SLFRS/LKAS 34-Interim

Financial Reporting.

4. In preparing the financial statements of Serendib Engineering Group PLC for the quarter ended

30th September 2021, a full provision of Rs.146,737,890/- has been made as follows.

Provision against the related party receivables in Subsidiaries

5. There were no changes to the Accounting Policies and methods of computation since the

publication of Annual Report for the Year ended 31st March 2021

I certify that these financial statements are in compliance with the requirements of the Companies

Act No.07 of 2007.

From Serendib Engineering & Agencies (Pvt) Limited Rs.61,537,890/-

From Serendib Investment Holdings Limited Rs.85,200,000/-


3.3 Cash Flow Statement – Company

2021 2020 2021

Unaudited Unaudited Unaudited

Rs. Rs. Rs.

Cash flows from operating activities

Net profit / (loss) before interest & taxation (2,011,568) (320,413) (3,708,707)

Adjustment for

Depreciation 17,165 73,132 55,967

Provision for Impairment on Investment in Subsidiaries - - -

Provision for Impairment on Related Party Receivables - - -

Provision for Stock Obsolescence - - -

Operating profit/ (loss) before working capital changes (1,994,403) (247,281) (3,652,740)

Changes in working capital

(Increase) / decrease in trade and other receivables - - -

Increase / (decrease) in trade and other payables (23,842) (371,425) - (Increase) / decrease in amounts due from related parties - -

Increase / (decrease) in amounts due to related parties 2,018,244 618,445 1,921,977.00

Cash generated from / (used in) operating activities - (260) (1,730,763)

Tax paid - - (260)

Net cash flow from / (used in) operating activities - (260) (1,731,023)

Cash flow from / (used in) investing activities

Interest received 92 130 231

Net cash flow from / (used in) investing activities 92 130 231

Net increase / (decrease ) in cash & cash equivalents 92 (130) (29)

Cash & cash equivalents at the beginning of the year 123,496 123,525 123,525

Cash & cash equivalents at the end of the period (Note: A) 123,588 123,394 123,496

Note: A

Cash & cash equivalents at the end of the period

Savings Accounts 9,227 9,033 9,135

Cash in hand & at bank 114,361 114,361 114,361

123,588 123,394 123,496


CASH FLOW STATEMENT - COMPANY

Period ended 30th September


3.4 Statement of Changes in Equity – Company

Description Stated Capital Retained Earnings Total

Rs. Rs. Rs.

Balance as at 01st April, 2021 178,107,910 (216,496,611) (38,388,701)

Net Profit/ (Loss) for the period - (2,011,476) (2,011,476)

Balance as at 30th September, 2021 178,107,910 (218,508,087) (40,400,177)

Balance as at 01st April, 2020 178,107,910 (65,920,447) 112,187,463

Net Profit/ (Loss) for the period - (151,915) (151,915)

Balance as at 30th September, 2020 178,107,910 (66,072,362) 112,035,548


STATEMENT OF CHANGES IN EQUITY -COMPANY


4. Notes to the Financial Statements

1. Serendib Engineering Group PLC is a Public Limited Company incorporated and domiciled in Sri

Lanka and listed on the Colombo Stock Exchange.

2.The Interim Financial Statements of the Group and the Company have been prepared for the the

Three months ended 30th September 2021.

3. Basis of Preparation

These interim financial statements have been prepared in accordance with LKAS 34 Interim Financial

Reporting and do not include all of the information required for full annual financial statements.

Further the requirements of the Colombo Stock Exchange and the Companies Act No.7 of 2007 has

been considered. The information for the preparation of these interim financial statements has been

drawn up from the unaudited financial records of the Company.

4. Contingencies, Capital and Other Commitments

4.1 Contingent Liabilities

There were no contingent liabilities as at the reporting Date.

4.2 Capital Commitments

There were no capital commitments as at the reporting Date.

5. Events after the reporting period

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

condensed financial statements.


5. Shareholder Information

5.1 Major Shareholders Details

Twenty largest shareholders of the Company are as follows;

No of Shares Holding %

1 Serendib Holdings PTE. Ltd 27,241,287 84.12%

2 Flyasia sdn.Bhd 1,175,625 3.63%

3 Mr.H.A.Nasar 200,000 0.62%

4 Mrs.Fonseka 173,114 0.53%

5 Bansei securities Capital (Pvt) Ltd. 152,200 0.47%

6 Hatton National Bank PLC/R.E.Rambukwelle 152,000 0.47%

7 Mr.Raaymkers 150,286 0.46%

8 Mr.Rajadurai 150,000 0.46%

9 DFCC Bank PLC/Mrs.A.A.Raaymakers 148,321 0.46%

10 Mr.Wijewardena 123,045 0.38%

11 People's Merchant Finance PLC/S.M.I.U.K.Senevirathne 104,697 0.32%

12 Mr.S.Gobinath 95,000 0.29%

13 Mr.Rambukwelle 76,000 0.23%

14 Mr.V.Sivalingam 60,000 0.19%

15 Mrs.A.A.Raaymakers 58,038 0.18%

16 Mr.T.M.N.Peiris 57,464 0.18%

17 Mrs.Gin 50,920 0.16%

18 Mr.Meththasena 50,019 0.15%

19 Mrs.Suwandaratne 50,001 0.15%

20 Mr.Wanasundara 50,000 0.15%

Total 30,318,017 93.62%

Others 2,065,233 6.38%

Total 32,383,250 100.00%

5.2 Public Shareholdings

Number of Shares Holding %

Shares held by the Public 5,141,963 15.88%

Shares held by the Others 27,241,287 84.12%

Total 32,383,250 100.00%

The Float adjusted market capitalization as at 30th September 2021 -Rs.35,992,687.05

The Float adjusted market capitalization of the Company falls under Option 2 of Rule 7.13.1 (b) 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.

The Stated Capital of the Company as at 30th September 2021 was Rs. 178,107,910/-representing

32,383,250 Ordinary Voting Shares. All shares are issued and fully paid.

No Name of the ShareholderAs at 30th September 2021

The percentage of shares held by the public as at 30th September 2021 was 15.88% Which represented

841 no of share holders.

As at 30th September 2021


5.3 CEO’s and Directors Shareholdings

The number of shares held by the Board of Directors and company CEO is as follows;

Directors and CEO's Shareholdings As at

No of Shares Holding % No of Shares Holding %

Name Of CEO

Mr.S.A.B.Herath (appointed w.e.f 24.8.2020) Nil 0.00% Nil 0.00%

Name of the Director

Mr.N.D.Rathnayake (appointed w.e.f 04.10.2018) Nil 0.00% Nil 0.00%

Mr.G.T.Jayaseelan (appointed w.e.f 09.01.2019) Nil 0.00% Nil 0.00%

Mr.Vaitheswaran Rajarajan (appointed w.e.f 24.05.2021) Nil 0.00% Nil 0.00%

Mr.Kathirgamar Sivaskantharajah (appointed w.e.f 03.05.2021) Nil 0.00% Nil 0.00%

Mr.S.A.B.Herath (appointed w.e.f 03.05.2021) Nil 0.00% Nil 0.00%

Total Nil 0.00% Nil 0.00%

5.4 Share price Information

Share Price information during the Interim Period is as follows;

Market Price of the Share

Highest Price per Share (Rs.)

Lowest Price per Share (Rs.)

Closed Price per Share (Rs.)

5.50 4.00

6.30 7.00

30th September 2021 30th September 2020

Quarter Ended

30th September 2021

Quarter Ended

30th September 2020

7.30 7.70


serendib engineering group plc

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