FINANCIAL STATEMENTS
For the Period Ended
30 JUNE 2024
LANKA VENTURES PLC
Ocean Lines Building
46/12, Nawam Mawatha
Colombo 02.
Tel: 2439201 Fax: 2439203
LANKA VENTURES PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Unaudited)
(All amounts in Sri Lanka Rupees thousands) | |||||||||
Group | Company | ||||||||
Period ended 30 June | Period ended 30 June | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Revenue | |||||||||
Subsidiary company income | 84,151 | 81,949 | - | - | |||||
84,151 | 81,949 | - | - | ||||||
Interest income | 5,754 | 7,849 | 1,187 | 4,850 | |||||
Other income | 70,945 | 1,156 | 17,426 | 12,836 | |||||
Operating expenses | |||||||||
Administrative expenses | (12,392) | (11,642) | (10,537) | (9,609) | |||||
Sales and establishment expenses | (876) | (1,151) | (876) | (902) | |||||
Other operating expenses | (4,887) | (3,134) | (1,856) | (990) | |||||
Direct expenses - other subsidiaries | (45,827) | (41,666) | - | - | |||||
Results from operating activities | 96,868 | 33,362 | 5,344 | 6,185 | |||||
Share of earnings from equity accounted investees | 321,032 | 45,202 | 173,116 | (41,676) | |||||
Finance cost | (87,282) | (152,466) | (175) | (3,871) | |||||
Profit/(loss) before income tax | 330,618 | (73,902) | 178,285 | (39,362) | |||||
Tax expense | 1,370 | 1,335 | - | - | |||||
Profit/(loss) for the period | 331,988 | (72,567) | 178,285 | (39,362) | |||||
Profit/(loss) attributable to: | |||||||||
Equity holders of the company | 178,285 | (39,362) | 178,285 | (39,362) | |||||
Non-controlling interest | 153,703 | (33,205) | - | - | |||||
Profit/(loss) for the period | 331,988 | (72,567) | 178,285 | (39,362) | |||||
Other comprehensive income, net of income tax | |||||||||
Items that are or may be re-classified subsequently to profit or loss | |||||||||
Foreign operations - foreign currency translation difference | (138,615) | (363,222) | (78,080) | (207,029) | |||||
Share of other comprehensive income from equity accounted investees | (310,737) | (144,931) | (171,999) | (82,607) | |||||
Total other comprehensive income that are or may be re-classified to | |||||||||
profit or loss in subsequent period | (449,352) | (508,153) | (250,079) | (289,636) | |||||
Items that will not be re-classified subsequently to profit or loss | |||||||||
Defined benefit plan actuarial gains/(losses) net of tax | - | - | - | - | |||||
Total other comprehensive income that not will be re-classified to | |||||||||
profit or loss in subsequent period | - | - | - | - | |||||
Total other comprehensive income for the period, net of income tax | |||||||||
(449,352) | (508,153) | (250,079) | (289,636) | ||||||
Total comprehensive income for the period | (117,364) | (580,720) | (71,794) | (328,998) | |||||
Total comprehensive income attributable to: | |||||||||
Equity holders of the company | (71,794) | (328,998) | (71,794) | (328,998) | |||||
Non-controlling interest | (45,570) | (251,722) | - | - | |||||
Total comprehensive income for the period | (117,364) | (580,720) | (71,794) | (328,998) | |||||
Basic earnings per share (Rs.) | 3.38 | (0.79) | 3.38 | (0.79) |
LANKA VENTURES PLC | ||||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited) | ||||||
(All amounts in Sri Lanka Rupees thousands) | ||||||
Group | Group | Company | Company | |||
As at 30 | As at 31 | As at 30 | As at 31 | |||
June 2024 | March 2024 | June 2024 | March 2024 | |||
Assets | ||||||
Non current assets | ||||||
Property, plant and equipment | 1,509,610 | 1,528,612 | 393 | 478 | ||
Right-of-use assets | 11,137 | 12,228 | 8,568 | 9,613 | ||
Investment in equity accounted investees | 6,397,085 | 6,525,405 | 3,118,438 | 2,975,893 | ||
Intangible assets | 119,161 | 120,403 | - | - | ||
Financial assets measured at fair value through OCI | 14,352 | 12,352 | 14,352 | 12,352 | ||
Total non current assets | 8,051,345 | 8,199,000 | 3,141,751 | 2,998,336 | ||
Current assets | ||||||
Loans and receivables | 120,179 | 125,045 | 5,477 | 4,699 | ||
Amounts due from related parties | 4,937 | 3,844 | 2,043 | 1,375 | ||
Trade and other receivables | 461,195 | 495,195 | 563 | 746 | ||
Income tax receivables | 7,878 | 7,878 | 1,515 | 1,515 | ||
Cash and cash equivalents | 576,551 | 222,364 | 67,862 | 64,948 | ||
Total current assets | 1,170,740 | 854,326 | 77,460 | 73,283 | ||
Total assets | 9,222,085 | 9,053,326 | 3,219,211 | 3,071,619 | ||
Equity | ||||||
Stated capital | 850,584 | 631,638 | 850,584 | 631,638 | ||
Revaluation reserve | 6,416 | 6,416 | 6,416 | 6,416 | ||
Translation reserve | 1,059,062 | 1,137,142 | 1,059,064 | 1,137,144 | ||
Cashflow hedge reserve | (862,570) | (690,571) | (862,570) | (690,571) | ||
Retained earnings | 2,174,315 | 1,951,562 | 2,133,225 | 1,954,939 | ||
Total equity attributable to equity holders of the | ||||||
Company | 3,227,807 | 3,036,187 | 3,186,718 | 3,039,566 | ||
Non controlling interest | 2,555,494 | 2,399,218 | - | - | ||
Total equity | 5,783,301 | 5,435,405 | 3,186,718 | 3,039,566 | ||
Liabilities | ||||||
Non current liabilities | ||||||
Defined benefit obligation | 5,342 | 5,042 | 5,342 | 5,042 | ||
Deferred tax liability | 73,411 | 74,781 | - | - | ||
Interest bearing borrowings | 2,689,685 | 2,881,316 | - | - | ||
Lease liability | 2,684 | 4,026 | 2,684 | 4,026 | ||
Total non current liabilities | 2,771,122 | 2,965,165 | 8,026 | 9,068 | ||
Current liabilities | ||||||
Interest bearing borrowings | 583,029 | 571,475 | - | - | ||
Lease liability | 5,368 | 5,368 | 5,368 | 5,368 | ||
Other payables | 51,598 | 47,930 | 19,099 | 17,617 | ||
Income tax payables | 27,667 | 27,984 | - | - | ||
Total current liabilities | 667,662 | 652,756 | 24,467 | 22,985 | ||
Total liabilities | 3,438,784 | 3,617,921 | 32,493 | 32,052 | ||
Total equity and liabilities | 9,222,085 | 9,053,326 | 3,219,211 | 3,071,619 | ||
Net assets per share (Rs.) | 61.16 | 60.72 | 60.38 | 60.79 |
I certify that the financial statements comply with the requirements of the Companies Act No. 07 of 2007.
Sgd.
D L Wijesekara
Finance Manager
The Board of Directors is responsible for the preparation and presentation of these financial statements.
Signed for and on behalf of the Board.
Sgd. | Sgd. |
M R Abeywardena | R A Dassanayake |
Director | Director |
15 August 2024 |
LANKA VENTURES PLC
STATEMENT OF CHANGES IN EQUITY (Unaudited) (All amounts in Sri Lanka Rupees thousands)
Group | |||||||||||
Revaluation | Translation | Cashflow | Retained | Non controlling | |||||||
Stated capital | reserve | reserve | hedge reserve | earnings | interest | Total | |||||
Balance as at 01 April 2023 | 631,638 | 6,416 | 1,529,907 | (647,011) | 1,992,469 | 2,769,503 | 6,282,923 | ||||
Profit/(loss) for the period | - | - | - | - | (39,362) | (33,205) | (72,567) | ||||
Foreign operations - foreign currency translation | - | - | (207,029) | - | - | (156,193) | (363,222) | ||||
difference | |||||||||||
Share of other comprehensive income from | - | - | - | (82,607) | - | (62,324) | (144,931) | ||||
equity accounted investees | |||||||||||
Total comprehensive income for the period
Transactions with equity holders recognized directly in equity
Dividend paid
Balance as at 30 June 2023
Balance as at 01 April 2024
Profit/(loss) for the period
Foreign operations - foreign currency translation difference
Share of other comprehensive income from equity accounted investees
Total comprehensive income for the period
Transactions with equity holders recognized directly in equity
Share Issued during the Period
Change in ownership without change in control in subsidiary
Dividend paid
Balance as at 30 June 2024
Company
Balance as at 01 April 2023
Profit/(loss) for the period
Foreign operations - foreign currency translation difference
Share of other comprehensive income from equity accounted investees
Total comprehensive income for the period
Transactions with equity holders recognized directly in equity
Dividend paid
Balance as at 30 June 2023
Balance as at 01 April 2024
Profit/(loss) for the period
Foreign operations - foreign currency translation difference
Share of other comprehensive income from equity accounted investees
Total comprehensive income for the period
Transactions with equity holders recognized directly in equity
Share Issued during the Period
Dividend paid
- | - | (207,029) | (82,607) | (39,362) | (251,722) | (580,720) | |||||
- | - | - | - | - | - | - | |||||
- | - | - | - | - | - | - | |||||
631,638 | 6,416 | 1,322,878 | (729,618) | 1,953,107 | 2,517,781 | 5,702,203 | |||||
631,638 | 6,416 | 1,137,142 | (690,571) | 1,951,562 | 2,399,218 | 5,435,405 | |||||
- | - | - | - | 178,285 | 153,703 | 331,988 | |||||
- | - | (78,080) | - | - | (60,535) | (138,615) | |||||
- | - | - | (171,999) | - | (138,738) | (310,737) | |||||
- | - | (78,080) | (171,999) | 178,285 | (45,570) | (117,364) | |||||
218,946 | - | - | - | - | - | 218,946 | |||||
- | - | - | - | 44,468 | 201,846 | 246,314 | |||||
- | - | - | - | - | - | - | |||||
218,946 | - | - | - | 44,468 | 201,846 | 465,260 | |||||
850,584 | 6,416 | 1,059,062 | (862,570) | 2,174,315 | 2,555,494 | 5,783,301 | |||||
Revaluation | Translation | Cashflow | Retained | ||||||||
Stated Capital | reserve | reserve | hedge reserve | earnings | Total | ||||||
631,638 | 6,416 | 1,529,908 | (647,011) | 1,995,846 | 3,516,798 | ||||||
- | - | - | - | (39,362) | (39,362) | ||||||
- | - | (207,029) | - | - | (207,029) | ||||||
- | - | - | (82,607) | - | (82,607) | ||||||
- | - | (207,029) | (82,607) | (39,362) | (328,998) | ||||||
- | - | - | - | - | - | ||||||
- | - | - | - | - | - | ||||||
631,638 | 6,416 | 1,322,879 | (729,618) | 1,956,484 | 3,187,800 | ||||||
631,638 | 6,416 | 1,137,144 | (690,571) | 1,954,939 | 3,039,566 | ||||||
- | - | - | - | 178,285 | 178,285 | ||||||
- | - | (78,080) | - | - | (78,080) | ||||||
- | - | - | (171,999) | - | (171,999) | ||||||
- | - | (78,080) | (171,999) | 178,285 | (71,794) | ||||||
218,946 | - | - | - | - | 218,946 | ||||||
- | - | - | - | - | - | ||||||
218,946 | - | - | - | - | 218,946 |
Balance as at 30 June 2024 | 850,584 | 6,416 | 1,059,064 | (862,570) | 2,133,225 | 3,186,718 | ||||
LANKA VENTURES PLC
CONSOLIDATED STATEMENT OF CASHFLOWS (Unaudited) (All amounts in Sri Lanka Rupees thousands)
Group | Company | ||||||
For the period ended 30 June | 2024 | 2023 | 2024 | 2023 | |||
Cash flows from operating activities | |||||||
Profit/(loss) before income tax | 330,618 | (73,902) | 178,285 | (39,362) | |||
Adjustments for: | |||||||
Amortization of staff cost | 37 | 37 | 37 | 37 | |||
Depreciation | 20,302 | 20,636 | 85 | 85 | |||
Amortization of ROUA | 1,342 | 990 | 1342 | 990 | |||
Amortization of intangible assets | 1,289 | 1,289 | - | - | |||
Share of earnings | (321,032) | (45,202) | (173,116) | 41,676 | |||
Interest income on staff loan | (97) | (57) | (97) | (57) | |||
Provision for defined benefit obligation | 300 | 300 | 300 | 300 | |||
Interest income on investments | (5,754) | (7,849) | (1,187) | (4,850) | |||
Interest expense on lease | 148 | 429 | 148 | 429 | |||
Interest expense | 86,742 | 151,752 | - | 433 | |||
113,895 | 48,423 | 5,797 | (318) | ||||
Changes in | |||||||
Loans and receivables | 4,867 | 24,969 | (776) | (3,419) | |||
Amounts due from related parties | (1,093) | (1,056) | (668) | 1,225 | |||
Other receivables | - | - | 182 | 10,898 | |||
Other payables | 3,646 | 1,380 | 1,461 | 61,145 | |||
Cash generated from operating activities | 121,315 | 73,716 | 5,996 | 69,531 | |||
Garuity paid | - | (232) | - | (232) | |||
Taxes paid | (317) | (634) | - | - | |||
Interest paid | (83,570) | (53,373) | (148) | (862) | |||
Net cash from operating activities | 37,428 | 19,477 | 5,848 | 68,437 | |||
Cash flows from investing activities | |||||||
Dividend received | 34,000 | - | - | - | |||
Additions to intangible assets | (2,000) | 11 | (2,000) | - | |||
Interest received | 5,851 | 7,906 | 1,284 | 4,908 | |||
Investment in equity accounted investees | - | - | (219,508) | - | |||
Additions to property, plant & equipment | (1,300) | - | - | (18) | |||
Net cash from investing activities | 36,551 | 7,917 | (220,224) | 4,890 | |||
Cash flows from financing activities | |||||||
Dividend paid | - | - | - | - | |||
Dividend paid to the minority shareholders | - | - | - | - | |||
Lease rental paid | (1,655) | (991) | (1,655) | (991) | |||
Proceeds from Right Issue | 465,260 | - | 218,946 | - | |||
Cash proceeds of interest bearing borrowings | - | - | - | - | |||
Cash repayments of interest bearing borrowings | (183,397) | (27,837) | - | (2,250) | |||
Net cash from financing activities | 280,208 | (28,828) | 217,291 | (3,241) | |||
Net increase/(decrease) in cash and cash equivalents | 354,187 | (1,434) | 2,915 | 70,086 | |||
Cash and cash equivalent as at 01 April | 222,364 | 218,869 | 64,948 | 52,013 | |||
Cash and cash equivalent as at 30 June | 576,551 | 217,435 | 67,862 | 122,098 | |||
Explanatory Notes :
- The interim financial statements are subject to audit.
- The same accounting policies and methods of computation have been followed in interim financial statements as compared with the most recent audited financial statements.
- The interim financial statements have been prepared in accordance with LKAS 34 - Interim Financial Reporting.
- Where items have been regrouped, comparative information in relation to previous year have been presented in line with information pertaining to the current period.
-
Two of our investee companies in Bangladesh namely Lakdhanavi Bangla Power Limited and Feni Lanka Power Limited have USD borrowings as well as a USD revenue component as per the Power Purchase Agreement (PPA) signed with the Bangladesh Power Development Board. Both companies have sufficient USD cash inflows to cover the USD loan repayments. According to
IFRS 9 Financial Instruments, the respective investee companies have treated the said transaction as a "Cash Flow Hedge" in the financial statements and the two companies expect to hedge the variability in the cash flows corresponding to the loan repayments attributable to changes in exchange rates over the period.
In this situation, USD borrowing was recognized as the Hedge Instrument and the USD revenue from the PPA is identified as the Hedged Item and both meet the recognition criteria set out in IFRS 9. Further, Hedge Effectiveness appears to be 100%. Accordingly, respective investee companies have applied hedge accounting principles in their financial statements.
Since both these investments are associates, as per the guidelines of LKAS 28 Investments in Associates and Joint Ventures, Company has applied equity method of accounting and recognized relevant share of the profit or loss, other comprehensive income and net assets in its financial statements in respect of these investments. - LVL Energy Fund PLC (LEF), Subsidiary Company of the Company has restructured the loan facilities taken from DFCC Bank PLC (DFCC) and National Development Bank PLC (NDB) considering the delay in expected dividend from one of the investee companies. Due to further delay in the said dividend, LEF has obtained an overdraft facility of Rs. 350 Mn from Hatton National Bank PLC (HNB) to meet short term obligations.
- Company raised Rs. 218,945,712/- by way of a Rights Issue. 8,324,932 ordinary shares were issued to the holders of ordinary voting shares of the company based on a ratio of 01 new ordinary voting share for every 06 ordinary voting shares held by such shareholders, at a consideration of Rs. 26.30 per share. Objective of the Rights Issue is to subscribe to the Rights Issue of its subsidiary Company LEF.
- The stated capital comprises 58,324,932 Ordinary Shares.
- There were no liabilities for management fees or any other similar expenditure not provided for in interim financial statements.
- There were no contingent liabilities during the period under review that require disclosure in interim financial statements.
- Events occurring after the reporting date: No circumstances have arisen since the reporting date which would require adjustment to or disclosure in the interim financial statements other than those disclosed in these notes.
12 The market price per share: | |||
for the quarter ended 30 June | 2024 | 2023 | |
Highest price | Rs. | 31.40 | 39.90 |
Lowest price | Rs. | 27.00 | 31.20 |
Last traded price | Rs. | 28.00 | 35.00 |
13 Twenty major shareholders of the Company as at 30 June 2024:
Name of shareholder / company name
No. of Shares | % of issued Capital | ||
1 | Acuity Partners (Pvt) Limited | 46,425,125 | 79.60 |
2 | Hatton National Bank PLC-Senfin Growth Fund | 943,223 | 1.62 |
3 | Peoples Leasing & Finance PLC /L. P. Hapangama | 739,645 | 1.27 |
4 | Hallsville Frontier Equities Ltd. | 517,176 | 0.89 |
5 | E. W. Balasuriya & Co. (Pvt) Limited Acc No 01 | 438,444 | 0.75 |
6 | Union Investments (Private) Limited | 326,316 | 0.56 |
7 | Mr.H.A.Cabraal | 308,338 | 0.53 |
8 | Peoples Leasing & Finance PLC / Dr. H. S. D. Soysa & Mrs. G. Soysa | 290,710 | 0.50 |
9 | Mr. A.M. Weerasinghe | 283,203 | 0.49 |
10 | Dialog Finance PLC/Fors Investment (Private) Limited | 267,820 | 0.46 |
11 | Akbar Brothers Pvt Ltd A/C No 1 | 256,517 | 0.44 |
12 | Peoples Leasing & Finance PLC / L. H. L. M. P. Haradasa | 188,292 | 0.32 |
13 | Fors Investment (Private) Limited | 175,000 | 0.30 |
14 | Mr. G. D. M. Ranasinghe | 160,000 | 0.27 |
15 | Mr.. D.A. Cabraal | 155,000 | 0.27 |
16 | Mr. A. Sithampalam | 140,000 | 0.24 |
17 | Peoples Leasing & Finance PLC / Mr. J. M. S. Brito & Mrs. B. S. Brito | 125,000 | 0.21 |
18 | Mr. S. S. Sithambaranathan | 121,634 | 0.21 |
19 | Mr. K. C. Vignarajah | 120,765 | 0.21 |
20 | Mr. C.R. Perera | 118,350 | 0.20 |
Total | |||
52,100,558 | 89.33 | ||
- Percentage of shares held by public as at 30 June 2024: 20.40%
No. of public shareholders as at 30 June 2024: 1,358 - Float adjusted market capitalization as at 30 June 2024 was Rs. 333,194,568/-. In terms of the rule 7.13.1(a) of the Listing Rules of the Colombo Stock Exchange relating to Main Board Listing, the Company complies with the minimum public holding pertaining to option 5.
16 Shareholding of Directors / CEO as at 30 June 2024 | No. of Shares | |
Mr. P. G. D. B. Pallewatte | Chairman | - |
Mr. R. A. Dassanayake | Director | 1 |
Mr. M. R. Abeywardena | Director | - |
Mr. J. D. N. Kekulawala | Director | - |
Mr. A. G. R. Dissanayake | Director | - |
Mr. T. Perera | Director | - |
Mr. K. Jayawardana | Director | - |
Mr. J. P. I. Gamage | CEO | - |
UTILIZATION OF RIGHTS ISSUE PROCEEDS AS AT 30 JUNE 2024
Objective | Objective | Amount | Proposed | Amount | % of | Amount | % of | Clarification if not fully |
Number | as per | Allocated | Date of | Allocated | Total | Utilized | Utilization | utilized including where |
Circular | as per | Utilization | from | Proceeds | in LKR | Against | the funds are invested | |
Circular | as per | Proceeds | (B) | Allocation | (e.g. whether lent to | |||
in LKR | Circular | in LKR (A) | (B/A) | related party/s etc.) | ||||
Investment in Rights Issue of the | ||||||||
1 | Company's Subsidiary, LVL Energy | 219,166,658 | 30 May 2024 | 218,945,712 | 100.00% | 218,945,712 | 100.00% | Not Applicable |
Fund PLC | ||||||||