Interim Financial Statements for the fourth quarter ended 31st March 2025

EQUITY TWO PLC

A Carson Cumberbatch Company

Equity Two PLC

Statement of Profit or Loss and Other Comprehensive Income

(All figures are in Sri Lankan Rupees Thousands)

Revenue 52,782 53,655 (2) 209,311 181,457 15

Direct costs (17,782) (15,579) 14 (81,388) (63,271) 29

Other income 365 258 41 1,172 967 21

Net fair value gain from investment properties 211,685 191,712 10 211,685 191,712 10

247,050 230,046 7 340,780 310,865 10

Administrative and other operating expenses (5,311) (5,232) 2 (17,572) (17,315) 1

Operating profit 241,739 224,814 8 323,208 293,550 10

Finance income 15,070 13,738 10 60,235 54,322 11

Finance costs (1,529) (2,905) (47) (7,308) (6,808) 7

Net finance income 13,541 10,833 25 52,927 47,514 11

Profit before taxation 255,280 235,647 8 376,135 341,064 10

Income tax expense (13,988) (10,858) 29 (49,176) (44,857) 10

Deferred taxation (63,601) (57,751) 10 (64,111) (58,512) 10

Profit for the period/ year 177,691 167,038 6 262,848 237,695 11

Other comprehensive income

Items that will not be reclassified to profit or loss

Loss from actuarial valuation of employee benefits

(438)

(936)

(53) (438) (936) (53)

Related tax

131

281

(53) 131 281 (53)

Total other comprehensive income for the period/

year

(307)

(655)

(53) (307) (655) (53)

Total comprehensive income for the period/ year

177,384

166,383

7 262,541 237,040 11

Earnings per share (Rs.) 5.73 5.39 8.48 7.67

Dividend per share (Rs.)* 4.10 0.50 4.10 1.00

Equity Two PLC

Statement of Financial Position

(All figures are in Sri Lankan Rupees Thousands)

As at 31.03.2025 (Audited)

ASSETS

Non-current assets

Investment properties 2,127,833 1,915,692

Investment in fixed deposits 215,821 217,164

Total non-current assets 2,343,654 2,132,856

Current assets

Trade and other receivables 34,310 31,585

Investment in fixed deposits 191,946 78,380

Fair value through profit or loss financial assets - 38,180

Current tax receivables 799 -

Cash and cash equivalents 180,415 8,205

Total current assets 407,470 156,350

Total assets 2,751,124 2,289,206

EQUITY AND LIABILITIES

Equity

Stated capital

444,092

444,092

Capital reserves

750

750

Revenue reserves

1,535,592

1,288,289

Total equity

1,980,434

1,733,131

Non-current liabilities

Refundable rental deposits

50,605

40,126

Deferred tax liability

535,455

471,475

Employee benefits

3,615

2,571

Total non-current liabilities

589,675

514,172

Current liabilities

Trade and other payables

159,263

9,906

Deferred revenue

21,752

23,531

Current tax liabilities

-

8,466

Total current liabilities

181,015

41,903

Total liabilities

770,690

556,075

Total equity and liabilities

2,751,124

2,289,206

Net assets per share (Rs.)

63.88

55.91

The Statement of Financial Position as at 31st March 2025 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the year then ended as disclosed in pages 1 to 4 have been drawn up from unaudited financial statements.

I certify that these financial statements are in compliance with the requirements of Companies Act, No. 7 of 2007.

L.C.D. Prasanga

Senior Vice President- Finance

Carsons Management Services (Private) Limited

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

Approved and signed on behalf of the Managers,

Approved and signed on behalf of the Board,

V.R. Wijesinghe

Director

Carsons Management Services (Private) Limited

Colombo

22nd May 2025

A.P. Weeratunge

Director

K.C.N. Fernando

Director

Equity Two PLC

Statement of Changes in Equity

(All figures are in Sri Lankan Rupees Thousands)

Stated

Capital

Revenue

Total

capital

reserves

reserves

equity

Balance as at 01st April 2024

444,092

750

1,288,289

1,733,131

Profit for the year - - 262,848 262,848

Other comprehensive income/ (expense) for the year - - (307) (307)

Total comprehensive income for the year

-

-

262,541

262,541

Forfeited dividends

-

-

262

262

Second interim dividend 2023/24

-

-

(15,500)

(15,500)

Balance as at 31st March 2025

444,092

750

1,535,592

1,980,434

Balance as at 01st April 2023

444,092

750

1,066,576

1,511,418

Profit for the year - - 237,695 237,695

Other comprehensive income/ (expense) for the year - - (655) (655)

Total comprehensive income for the year

-

-

237,040

237,040

Forfeited dividends

-

-

173

173

First interim dividend 2023/24

-

-

(15,500)

(15,500)

Balance as at 31st March 2024

444,092

750

1,288,289

1,733,131

Figures in brackets indicate deductions.

Equity Two PLC

Statement of Cash Flows

(All figures are in Sri Lankan Rupees Thousands)

Year ended 31st March

2025

2024

Cash flows from operating activities

Profit before taxation

376,135

341,064

Adjustments for:

Finance costs

7,308

6,808

Finance income

(58,615)

(53,642)

Net change in fair value through profit or loss financial assets

(1,620)

(680)

Net fair value gain from investment properties

(211,685)

(191,712)

Provision for employee benefits

606

349

Amortization of deferred revenue

(8,138)

(6,659)

Operating profit before working capital changes

103,991

95,528

(Increase) / decrease in trade and other receivables

(2,725)

(8,763)

Increase / (decrease) in trade and other payables

111,820

(16,474)

Operating profit after working capital changes

213,086

70,291

Rental deposits received

18,849

3,391

Rental deposits refunded

(9,319)

(2,067)

Income tax paid

(20,714)

(23,426)

Net cash generated from / (used in) operating activities

201,902

48,189

Cash flows from investing activities

Additions to investment properties

(456)

(3,385)

Investment at fair value through profit or loss financial assets

(20,000)

(67,500)

Redemption of fair value through profit or loss financial assets

59,800

30,000

Investment in fixed deposits

(283,617)

(45,000)

Withdrawal of fixed deposits

194,121

35,723

Interest received

35,888

14,306

Net cash generated from / (used in) investing activities

(14,264)

(35,856)

Cash flows from financing activities

Dividends paid

(15,428)

(15,496)

Interest paid

-

(812)

Loans obtained

-

80,000

Loans settled

-

(80,000)

Net cash generated from / (used in) financing activities

(15,428)

(16,308)

Net increase / (decrease) in cash and cash equivalents

172,210

(3,975)

Cash and cash equivalents at the beginning of the year

8,205

12,180

Cash and cash equivalents at the end of the year

180,415

8,205

Statement of cash and cash equivalents

Cash at bank and in hand

124,378

8,205

Placements with banking and financial institutions

56,037

-

Cash and cash equivalents for the cash flow statement

180,415

8,205

Equity Two PLC

Notes to the Interim Financial Statements

(All figures are in Sri Lankan Rupees Thousands)

1.

BASIS OF PREPARATION OF INTERIM FINANCIAL STATEMENTS

The Interim Financial Statements of the Company have been prepared using the same accounting policies and methods as the audited financial statements for the year ended 31st March 2024, and are in compliance with Sri Lanka Accounting Standard LKAS 34 - "Interim Financial Reporting". The provisions of the Companies Act, No. 7 of

2007 have been considered in preparing these Interim Financial Statements.

2.

EVENTS AFTER THE REPORTING PERIOD

Subsequent to the reporting period, no circumstances have arisen which would require adjustments to or disclosure

in the financial statements, other than disclosed in Note 7.1.

3.

CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

There were no material contingent liabilities and capital commitments.

4.

LIABILITIES FOR EXPENDITURE

Management fees and other significant expenses incurred for the year have been accounted for in full in the interim financial statements.

5.

COMPARATIVE FIGURES

Previous period's figures and phrases have been re-arranged wherever necessary to conform to the current period's

presentation.

6.

STATED CAPITAL

The Stated Capital of the Company as at 31st March 2025 was Rs. 444,092,098/35, consisting of 31,000,000 fully paid

Ordinary Shares.

7.

DIVIDENDS

Year ended 31st March

2025

2024

Dividends paid during the year

Second interim dividend 2023/24 (50 cents per share)

15,500

-

First interim dividend 2023/24 (50 cents per share)

-

15,500

Dividend proposed during the year

First interim dividend 2024/25 (Rs.4.10 per share) (Note 7.1)

127,100

-

Second interim dividend 2023/24 (50 cents per share)

-

15,500

Total dividends for the year

127,100

31,000

Dividend per share (Rs.)

4.10

1.00

7.1

After satisfying the solvency test in accordance with Section 57 of the Companies Act No. 07 of 2007, the Board of Directors of the Company approved a first interim dividend of Rs.4.10 per Ordinary share for the year ended 31st March 2025 amounting to Rs.127,100,000/-. The entitlement/ record date for the above dividend was 28th April 2025.

8.

GOING CONCERN

Based on the current information, the directors are satisfied that the Company will continue to operate in the

foreseeable future.

Transactions with the parent company

Dividends paid, net of WHT 11,709

11,709

Transactions with affiliate companies

Management and support services fees paid 7,582

7,582

Rent and parking fees received 35,755

35,755

Equity Two PLC

Notes to the Interim Financial Statements

(All figures are in Sri Lankan Rupees Thousands)

10.

TWENTY MAJOR SHAREHOLDERS AS AT 31ST MARCH 2025

Name of Shareholders

Shares

%

1

Equity One Limited A/C No.1

27,549,456

88.87

2

Bank of Ceylon A/C Ceybank Unit Trust

2,048,270

6.61

3

MR. S. K. D. D. Prasad

108,492

0.35

4

Estate of late Mr. K.C. Vignarajah

108,301

0.35

5

Tranz Dominion, L.L.C.

55,480

0.18

6

Mrs. C.A.D.S. Woodward

52,073

0.17

7

Miss. V.K. Ramanayake

50,000

0.16

8

Mrs. C.L. Ramanayake

50,000

0.16

9

Mr. P. Somadasa

37,168

0.12

10

Mr. L.L. Hettiarachchi

29,309

0.09

11

Amana Bank PLC/ Hi-Line Trading (Pvt) Ltd

25,337

0.08

12

Miss. C.M. Wickramasekera

25,300

0.08

13

Union Investments Private Ltd

25,200

0.08

14

Mr. A.A. Noordeen

23,496

0.08

15

People's Leasing & Finance PLC/ Dr. H.S.D. Soysa & Mrs. G. Soysa

19,000

0.06

16

Mr. S.S.R. Ramanayake

16,263

0.05

17

Mr. S.N.C.W.M.B.C. Kandegedara

16,200

0.05

18

Mr. J.B. Hirdaramani

16,000

0.05

19

Mrs. J. Aloysius

15,900

0.05

20

Dialog Finance PLC/ A.S.M. Shiyam

14,781

0.05

11.

PUBLIC HOLDING

The Company is in compliance with the Minimum Public Holding requirements for Companies listed on the Diri Savi Board as per Rule 7.13.1 (i) (b) of the Listing Rules of the Colombo Stock Exchange, under Option 2, i.e. Float-Adjusted Market Capitalization of less than Rs.1 Billion with 200 Public Shareholders and a Public Holding

percentage of 10%.

The Company's Public Holding as at 31st March 2025

Float Adjusted Market Capitalization (Rs.)

137,543,280.00

Number of Public Shareholders

2,031

Percentage of ordinary shares held by the public

11.12%

No. of Shares

Mr. E. H. Wijenaike (Chairman) -

Mr. K.C.N. Fernando 3,600

Mr. A.P. Weeratunge -

Mr. S. Marimuthu 550

Mr. A.S. Amaratunga -

12.

DIRECTORS SHAREHOLDING AS AT 31ST MARCH 2025

13.

MARKET PERFORMANCE- ORDINARY SHARES

As at/ for the three months ended 31st March 2025

Last traded price per share (Rs.) 39.90

Highest price per share for the period (Rs.) 48.30

Lowest price per share for the period (Rs.) 38.20

Market capitalisation (Rs.) 1,236,900,000.00

Corporate Information

NAME OF THE COMPANY

Equity Two PLC

(A Carson Cumberbatch Company)

COMPANY REGISTRATION NO.

PQ 34

LEGAL FORM

A Public Quoted Company with Limited Liability incorporated in Sri Lanka in 1990.

Official listing of the Colombo Stock Exchange was obtained in November 1994.

PARENT AND ULTIMATE CONTROLLING ENTITY

Equity One Limited is the immediate Parent Company of Equity Two PLC. Carson Cumberbatch PLC is the Parent Company of Equity One Limited and Bukit Darah PLC is the Ultimate Parent and Controlling Entity of Equity One Limited.

DIRECTORS

Mr. E. H. Wijenaike (Chairman)

Mr. K.C.N. Fernando

Mr. A. P. Weeratunge

Mr. S. Marimuthu

Mr. A.S. Amaratunga

AUDIT COMMITTEE

Mr. A. S. Amaratunga (Chairman) - Non-Executive/ Independent

Mr. S. Marimuthu - Non-Executive/ Independent

Mr. A. P. Weeratunge - Non Executive

REMUNERATION COMMITTEE

Mr. S. Marimuthu (Chairman) - Non-Executive/ Independent

Mr. A. S. Amaratunga - Non-Executive/ Independent

Mr. A. P. Weeratunge - Non Executive

NOMINATIONS AND GOVERNANCE

Mr. S. Marimuthu (Chairman) - Non-Executive/ Independent

COMMITTEE

Mr. A. S. Amaratunga - Non-Executive/ Independent

Mr. A. P. Weeratunge - Non Executive

RELATED PARTY TRANSACTIONS

Mr. A. S. Amaratunga (Chairman) - Non-Executive/ Independent

REVIEW COMMITTEE

Mr. S. Marimuthu - Non-Executive/ Independent

Mr. A. P. Weeratunge - Non Executive

PLACE OF BUSINESS

No. 61, Janadhipathi Mawatha,

Colombo 01, Sri Lanka.

Tel : +94 11 2039 200

Fax: +94 11 2039 300

BANKERS

Standard Chartered Bank

Commercial Bank of Ceylon PLC

Hatton National Bank PLC

Nations Trust Bank PLC

DFCC Bank PLC

National Development Bank PLC

Sampath Bank PLC

SBI Sri Lanka

AUDITORS

Messrs. KPMG

Chartered Accountants

No.32A, Sir Mohamed Macan Marker Mawatha,

Colombo 03, Sri Lanka.

Tel: +94 11 5426 426

Fax:+94 11 2445 872

MANAGERS & SECRETARIES

Carsons Management Services (Private) Limited

No. 61, Janadhipathi Mawatha,

Colombo 01, Sri Lanka.

Tel : +94 11 2039 200

Fax: +94 11 2039 300

REGISTERED OFFICE

No. 61, Janadhipathi Mawatha,

Colombo 01, Sri Lanka.

Tel : +94 11 2039 200

Fax: +94 11 2039 300

CORPORATE WEBSITE

https://www.carsoncumberbatch.com