LANKA VENTURES PLC
Interim Financial Statements
30thJUNE 2025LANKA VENTURES PLC
CONTENTS
Statement of Profit or Loss & Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Interim Financial Statements
Corporate Information
Statement of Profit or Loss & Other Comprehensive Income
Quarter Ended 30thJune 2025
GROUP | COMPANY | |||
30.06.2025 | 30.06.2024 | 30.06.2025 | 30.06.2024 | |
LKR 000 | LKR 000 | LKR 000 | LKR 000 | |
Revenue | 117,412 | 84,151 | - | - |
Direct expenses | (58,262) | (45,827) | - | - |
Gross Profit | 59,150 | 38,324 | - | - |
Interest income | 3,266 | 5,754 | 957 | 1,187 |
Other income | 284 | 70,945 | 14,239 | 17,426 |
Operating expenses | ||||
Administrative expenses | (12,877) | (12,392) | (11,496) | (10,537) |
Sales and establishment expenses | (614) | (876) | (419) | (876) |
Other operating expenses | (4,400) | (4,887) | (1,605) | (1,856) |
Results from operating activities | 44,809 | 96,868 | 1,676 | 5,345 |
Share of earnings from equity accounted investees | 387,823 | 321,032 | 190,960 | 173,116 |
Finance cost | (70,446) | (87,282) | (120) | (175) |
Profit/(loss) before income tax | 362,186 | 330,618 | 192,516 | 178,285 |
Tax (expense) / Reversal | (4,533) | 1,370 | - | - |
Profit/(loss) for the period | 357,653 | 331,988 | 192,516 | 178,285 |
Profit/(loss) attributable to: | ||||
Equity holders of the company | 192,516 | 178,285 | 192,516 | 178,285 |
Non-controlling interest | 165,137 | 153,703 | - | - |
Profit/(loss) for the period | 357,653 | 331,988 | 192,516 | 178,285 |
Other comprehensive income, net of income tax | ||||
Foreign operations - foreign currency translation difference | 33,910 | (138,615) | 18,770 | (78,080) |
Share of other comprehensive income from equity accounted investees | 30,745 | (310,737) | 17,018 | (171,999) |
Defined benefit plan actuarial gains/(losses) net of Tax | - | - | - | - |
Total other comprehensive income for the period, net of tax | 64,655 | (449,352) | 35,778 | (250,079) |
Total comprehensive income for the period | 422,308 | (117,364) | 228,304 | (71,794) |
Total comprehensive income attributable to: | ||||
Equity holders of the company | 228,304 | (71,794) | 228,304 | (71,794) |
Non-controlling interest | 194,004 | (45,570) | - | - |
Total comprehensive income for the period | 422,308 | (117,364) | 228,304 | (71,794) |
Basic earnings per share (Rs.) | 3.30 | 3.57 | 3.30 | 3.57 |
01
Statement of Financial Position
GROUP
COMPANY
As At 30thJune 2025
ASSETS
Non current assets
Property, plant and equipment Right-of-use assets
Investment in equity accounted investees Intangible assets
Financial assets measured at fair value through OCI Deferred tax asset
Total non current assets Current assets
Loans and receivables
Amounts due from related parties Other receivables
Income tax receivables Cash and cash equivalents Total current assets Total Assets
EQUITY & LIABILITIES
Equity
Stated capital Revaluation reserve Translation reserve Cashflow hedge reserve Retained earnings
Total equity attributable to equity holders of the Company
Non controlling interest Total equity Liabilities
Non current liabilities Defined benefit obligation Deferred tax liability Interest bearing borrowings Lease liability
Total non current liabilities Current liabilities
Interest bearing borrowings Amounts due to related parties Lease liability
Other payables Income tax payables Bank Overdraft
Total current liabilities Total liabilities
Total equity and liabilities
Net assets per share (Rs.)
30.06.2025
LKR 000
1,443,963
5,283
6,341,495
114,226
19,586
31,413
7,955,966
104,859
511
977,092
5,438
232,866
1,320,766
9,276,732
850,584
6,416
852,391
(821,017)
2,511,837
3,400,211
2,678,503
6,078,714
3,789
159,580
2,214,394
-
2,377,763
589,071
175,931
3,042
40,332
11,880
-
820,256
3,198,019
9,276,732
58.30
30.06.2025
LKR 000
600
2,903
3,284,210
-19,586
-
3,307,299
2,261
3,578
10,633
1,515
61,389
79,376
3,386,675
850,584
6,416
852,392
(821,017)
2,470,746
3,359,121
-
3,359,121
3,789
-
-
-
3,789
-
3,042
20,724
-
-
23,766
27,554
3,386,675
57.59
31.03.2025
LKR 000
1,462,232
6,672
5,889,018
115,468
15,852
31,413
7,520,655
63,282
511
987,390
11,422
226,418
1,289,022
8,809,678
850,584
6,416
833,621
(838,035)
2,319,321
3,171,907
2,485,641
5,657,548
3,507
159,580
2,370,123
-
2,533,210
481,286
4,487
34,049
17,538
81,560
618,919
3,152,129
8,809,678
54.38
31.03.2025
LKR 000
539
4,245
3,057,463
-15,852
-
3,078,099
1,905
3,543
-1,515
72,666
79,631
3,157,730
850,584
6,416
833,622
(838,035)
2,278,230
3,130,817
-
3,130,817
3,507
-
-
-
3,508
-
4,487
18,918
-
-
23,405
26,913
3,157,730
53.68
I certify that the above financial statements comply with the requirements of the Companies Act No. 07 of 2007.
(Sgd.) Jayantha Pradeep 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.) W P K Jayawardana Director
(Sgd.) A G R Dissanayake Director
Colombo. Aug 12th, 2025
02
Statement of Changes in Equity
Period Ended 30thJune 2025
GROUP | Equity attributable to equity holders of the Company | Non controlling interest | Total equity | |||||
Stated capital | Revaluation reserve | Translation reserve | Cashflow hedge reserve | Retained earnings | Total | |||
LKR 000 | LKR 000 | LKR 000 | LKR 000 | LKR 000 | LKR 000 | LKR 000 | LKR 000 | |
Balance as at 01st April 2024 | 631,638 | 6,416 | (690,571) | 1,137,142 | 1,951,562 | 3,036,187 | 2,399,218 | 5,435,406 |
Profit/(loss) for the period | - | - | - | - | 178,285 | 178,285 | 153,703 | 331,988 |
Foreign operations - foreign currency translation difference | - | - | (78,080) | - | - | (78,080) | (60,536) | (138,615) |
Share of other comprehensive income from equity accounted investees | - | - | - | (171,999) | - | (171,999) | (138,738) | (310,737) |
Defined benefit plan actuarial gains /(losses) | - | - | - | - | - | |||
Total comprehensive income for the period | - | - | (78,080) | (171,999) | 178,285 | (71,794) | (45,570) | (117,364) |
Transactions with equity holders recognized directly in equit | ||||||||
Shares issued during the period | 218,946 | 218,946 | 218,946 | |||||
Change in ownership without change in control in subsidiary | - | - | - | 44,468 | 44,468 | 201,846 | 246,314 | |
Dividend paid | - | - | - | - | - | - | - | - |
Balance as at 30th June 2024 | 850,584 | 6,416 | (768,651) | 965,143 | 2,174,315 | 3,227,806 | 2,555,494 | 5,783,301 |
Balance as at 01st April 2025 | 850,584 | 6,416 | 833,621 | (838,035) | 2,319,321 | 3,171,906 | 2,485,641 | 5,657,548 |
Profit/(loss) for the period | - | - | - | - | 192,516 | 192,516 | 165,137 | 357,653 |
Foreign operations - foreign currency translation difference | - | - | 18,770 | - | - | 18,770 | 15,140 | 33,910 |
Share of other comprehensive income from equity accounted investees | - | - | - | 17,018 | - | 17,018 | 13,727 | 30,745 |
Defined benefit plan actuarial gains /(losses) | - | - | - | - | - | - | - | - |
Total comprehensive income for the period | - | - | 18,770 | 17,018 | 192,516 | 228,304 | 194,004 | 422,308 |
Transactions with equity holders recognized directly in equity | ||||||||
Shares issued during the period | - | - | - | - | - | |||
Change in ownership without change in control in subsidiary | - | - | - | - | ||||
Dividend paid | - | - | - | - | - | - | (1,142) | (1,142) |
Balance as at 30th June 2025 | 850,584 | 6,416 | 852,391 | (821,017) | 2,511,837 | 3,400,210 | 2,678,503 | 6,078,714 |
03
Statement of Changes in Equity
Period Ended 30thJune 2025
COMPANY | Stated capital | Revaluation reserve | Translation reserve | Cashflow hedge reserve | Retained earnings | Total equity |
LKR 000 | LKR 000 | LKR 000 | LKR 000 | LKR 000 | LKR 000 | |
Balance as at 01st April 2024 | 631,638 | 6,416 | 1,137,144 | (690,571) | 1,954,939 | 3,039,567 |
Profit/(loss) for the period | - | - | - | - | 178,285 | 178,285 |
Foreign operations - foreign currency translation difference | - | - | (78,080) | - | - | (78,080) |
Share of other comprehensive income from equity accounted investees | - | - | - | (171,999) | - | (171,999) |
Defined benefit plan actuarial gains /(losses) | - | - | - | - | ||
Total comprehensive income for the period | - | - | (78,080) | (171,999) | 178,285 | (71,794) |
Transactions with equity holders recognized directly in equit | ||||||
Shares issued during the period | 218,946 | - | - | - | - | 218,946 |
Dividend paid | - | - | - | - | - | - |
Balance as at 30th June 2024 | 1,069,529 | 6,416 | 1,059,064 | (862,570) | 2,133,224 | 3,405,664 |
Balance as at 01st April 2025 | 850,584 | 6,416 | 833,622 | (838,035) | 2,278,230 | 3,130,817 |
Profit/(loss) for the period | - | - | - | - | 192,516 | 192,516 |
Foreign operations - foreign currency translation difference | - | - | 18,770 | - | - | 18,770 |
Share of other comprehensive income from equity accounted investees | - | - | - | 17,018 | - | 17,018 |
Defined benefit plan actuarial gains /(losses) | - | - | - | - | ||
Total comprehensive income for the period | - | - | 18,770 | 17,018 | 192,516 | 228,304 |
Transactions with equity holders recognized directly in equity | ||||||
Shares issued during the period | - | - | - | - | - | - |
Change in ownership without change in control in subsidiary | - | - | - | - | - | - |
Dividend paid | - | - | - | - | - | - |
Balance as at 30th June 2025 | 850,584 | 6,416 | 852,392 | (821,017) | 2,470,746 | 3,359,121 |
04
Statement of Cash Flows
Period Ended 30thJune 2025
GROUP | COMPANY | |||
30.06.2025 | 30.06.2024 | 30.06.2025 | 30.06.2024 | |
LKR 000 | LKR 000 | LKR 000 | LKR 000 | |
Cash flows from operating activities | ||||
Profit/(loss) before income tax | 362,186 | 330,618 | 192,516 | 178,285 |
Adjustments for: | ||||
Amortization of Staff Cost | 5 | 37 | 5 | 37 |
Depreciation | 20,117 | 20,302 | 85 | 85 |
Amortization of ROUA | 1,342 | 1,342 | 1,342 | 1,342 |
Share of Profit of Equity Accounted Investees (Net of Income Tax) | (387,823) | (321,032) | (190,960) | (173,116) |
Interest Income on Staff Loan | (13) | (97) | (13) | (97) |
Provision for Defined Benefit Obligation | 281 | 300 | 281 | 300 |
Interest Income on Investments | (3,266) | (5,754) | (957) | (1,187) |
Interest Expense | 66,575 | 86,742 | - | - |
Interest Expense on Lease | 449 | 148 | 449 | 148 |
Amortization of Intangible Assets | 1,289 | 1,289 | - | - |
Operating cash flow before working capital changes | 61,142 | 113,896 | 2,748 | 5,797 |
(Increase)/decrease in Loans and receivables | (41,578) | 4,867 | (356) | (776) |
(Increase)/decrease in Amounts due from related parties | 175,931 | (1,093) | (35) | 182 |
(Increase)/decrease in Other receivables | - | - | (10,633) | (668) |
Increase/(decrease) in Other payables | 6,288 | 3,647 | 1,803 | 1,461 |
Cash generated from operating activities | 201,783 | 121,317 | (6,473) | 5,997 |
Gratuity paid | - | - | - | - |
Taxes paid | (3,628) | (317) | - | - |
Interest paid | (50,600) | (83,570) | (449) | (148) |
Net cash from operating activities | 147,555 | 37,429 | (6,922) | 5,848 |
Cash flows from investing activities | ||||
Dividend received | 10,290 | 34,000 | - | - |
Investment in Financial Assets | (3,735) | (2,000) | (3,735) | (2,000) |
Interest received | 3,279 | 5,851 | 970 | 1,284 |
Investment in equity accounted investees | - | - | - | - |
Investment in Subsidiary | - | - | - | (219,508) |
Additions to property, plant & equipment | (1,848) | (1,300) | (147) | - |
Net cash from investing activities | 7,986 | 36,551 | (2,911) | (220,224) |
Cash flows from financing activities | ||||
Dividend paid | (1,721) | - | - | - |
Lease rental paid | (1,445) | (1,655) | (1,445) | (1,655) |
Proceeds from Right Issue | - | 465,260 | - | 218,946 |
Cash proceeds of interest bearing borrowings | - | - | - | - |
Cash repayments of interest bearing borrowings | (64,367) | (183,397) | - | - |
Net cash from financing activities | (67,532) | 280,207 | (1,444) | 217,290 |
Net increase/(decrease) in cash and cash equivalents | 88,008 | 354,187 | (11,277) | 2,914 |
Cash and cash equivalents at the beginning of the period | 144,858 | 222,364 | 72,666 | 64,948 |
Cash and cash equivalents at the end of the period | 232,866 | 576,551 | 61,389 | 67,862 |
05
Notes to the Interim Financial Statements
Period Ended 30thJune 2025
CORPORATE INFORMATION
Lanka Ventures PLC is a public limited liability company listed on the Colombo Stock Exchange incorporated and domiciled in Sri Lanka. The registered office is situated at 2nd Floor, "Sayuru Sevana", No. 46/12, Navam Mawatha, Colombo 02, Sri Lanka
BASIS OF PREPARATION OF INTERIM FINANCIAL STATEMENTS
The interim condensed consolidated financial statements for the quarter ended 30thJune 2025, which have not been audited, have been prepared in accordance with LKAS 34 / Interim Financial Reporting. These financial statements do not include all the information and disclosures required for the annual financial statements and have been prepared based on the accounting policies set out in the audited financial statements for the year ended 31st March 2025. The provisions of the Companies Act No. 7 of 2007 and the revised Listing Rules of the Colombo Stock Exchange have also been considered in the preparation of the interim financial statements of the Company and the Group.
There are no new standards or interpretations that were adopted after 31 March 2025.
There are no significant changes in the nature of the contingent liabilities disclosed in the Audited Financial Statements for the year ended 31st March 2025.
Events after the Reporting Date : There were no material events occurring after the reporting date that require adjustments to or disclosure in the financial statements.
Where necessary, comparative figures have been re-classified to conform with the current period's presentation.
DIVIDEND FROM BANGLADESH ASSOCIATES
There was a delay in receiving dividends from associate companies in Bangladesh due to the prevailing country situation and banking restrictions on remitting dividends. However, the management of the associate companies has taken steps to expedite the remittance process. In the meantime, LVL Energy Fund PLC has taken proactive measures to manage its cash flow, including the restructuring of bank loans and the successful conclusion of a rights issue in June 2024.
INVESTMENTS IN ASSOCIATES IN BANGLADESH
Two of our investee companies in Bangladesh, namely Lakdhanavi Bangla Power Limited and Feni Lanka Power Limited, have USD-denominated borrowings and USD revenue components under their respective Power Purchase Agreements (PPAs) with the Bangladesh Power Development Board. Both companies generate sufficient USD cash inflows to fully cover their USD loan repayments.
In accordance with IFRS 9 / Financial Instruments, the investee companies have designated these arrangements as cash flow hedges in their financial statements. The USD borrowings have been identified as the hedging instruments, and the USD revenue streams under the PPAs have been designated as the hedged items. Both the hedging instruments and hedged items meet the recognition criteria set out in IFRS 9, and hedge effectiveness has been assessed at 100%. Consequently, hedge accounting principles have been appropriately applied by the respective companies.
Since these companies are associates, the Group has applied the equity method of accounting as per LKAS 28 / Investments in Associates and Joint Ventures. Accordingly, the Group has recognized its share of profit or loss, other comprehensive income, and net assets relating to these investments in its consolidated financial statements.
RIGHTS ISSUE / JUNE 2024
The Company successfully raised a total of LKR 218,945,712 through a Rights Issue in June 2024. A total of 8,324,932 ordinary voting shares were issued to existing ordinary shareholders on the basis of one (1) new ordinary voting share for every six (6) ordinary voting shares held. The new shares were issued at a consideration of Rs. 26.30 per share.
Objective of the Rights Issue:
The primary purpose of the funds raised was to enable the Company to subscribe to the Rights Issue of its subsidiary, LVL Energy Fund PLC.The funds raised through the Rights Issue were fully utilized for this purpose.
06
Notes to the Interim Financial StatementsPeriod Ended 30thJune 2025
For the quarter ended
Highest price Lowest price Last traded price
30-06-2025
(LKR)
55.40
35.60
49.50
30-06-2024
(LKR)
31.40
27.00
28.00
SHARE PRICE
STATED CAPITAL
As At
Numbers of Ordinary Shares
30-06-2025
58,324,932
30-06-2024
58,324,932
Stated capital is represented by the number of shares in issue as given below.
TOP TWENTY MAJOR SHAREHOLDERS AS AT 30THJUNE 2025
No
Shareholder Name
No. of Shares
%
01
HNB Investment Bank (Pvt) Ltd
46,425,125
79.60%
02
Peoples Leasing & Finance PLC /L. P. Hapangama
959,374
1.64%
03
Hatton National Bank PLC-Senfin Growth Fund
943,223
1.62%
04
Hallsville Frontier Equities Ltd.
517,176
0.89%
05
Dialog Finance PLC/Fors Investment (Private) Limited
442,820
0.76%
06
Peoples Leasing & Finance PLC / Dr. H. S. D. Soysa & Mrs. G. Soysa
367,946
0.63%
07
Union Investments (Private) Limited
326,316
0.56%
08
E. W. Balasuriya & Co. (Pvt) Limited Acc No 01
296,700
0.51%
09
Peoples Leasing & Finance PLC / L. H. L. M. P. Haradasa
283,929
0.49%
10
Mr. A.M. Weerasinghe
200,000
0.34%
11
Mr. M.N.T. Mendis
176,000
0.30%
12
Mr. G. D. M. Ranasinghe
160,000
0.27%
13
Mr.. D.A. Cabraal
155,000
0.27%
14
Mr. A. Sithampalam
140,000
0.24%
15
Mr.H.A.Cabraal
130,000
0.22%
16
MR. T. Govinthadas
128,987
0.22%
17
Peoples Leasing & Finance PLC / Mr. J. M. S. Brito & Mrs. B. S. Brito
125,000
0.21%
18
Mr. M.N.S. Mendis
121,862
0.21%
19
Est.of Lat K.C. Vignarajah
120,765
0.21%
20
MR. U.D. Wickremesooriya
115,000
0.20%
Sub Total
52,135,223
89.39%
Other Shareholders
6,189,709
10.61%
Total Numbers of Shares
58,324,932
100.00 %
07
Notes to the Interim Financial StatementsPeriod Ended 30thJune 2025
The percentage of shares held by the public as at 30thJune 2025 was 20.40%. The number of shareholders representing the public holding was 1,451
The float adjusted market capitalization as at 30thJune 2025 was LKR 588,965,163
The Float adjusted market capitalization of the Company falls under Option 5 of Rule 7.13.1 (i) (a) 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.
SHAREHOLDING OF DIRECTORS AND CEO AS AT 30THJUNE 2025
The shareholding of the Directors and the CEO is set out below:
Name | Designation | No. of Shares |
Mr. P. G. D. B. Pallewatte | Chairman | Nil |
Mr. M. R. Abeywardena | Director | Nil |
Mr. J. D. N. Kekulawala | Director | Nil |
Mr. A. G. R. Dissanayake | Director | Nil |
Mr. W. P. K. Jayawardana | Director | Nil |
Mr. I.G.J. Palitha | Chief Executive Officer | Nil |
08
Corporate Information
NAME OF COMPANY
Lanka Ventures PLC
LEGAL FORM
A Public Limited Liability Company incorporated in Sri Lanka under the Companies Ordinance No. 51 of 1938, (Registered under the Companies Act No. 07 of 2007) and listed on the Colombo Stock Exchange.
REGISTRATION NUMBER
PQ 95
DATE OF INCORPORATION
21 February 1992
REGISTERED OFFICE
2nd Floor, "Sayuru Sevana", No. 46/12, Navam Mawatha, Colombo 02, Sri Lanka
Tel : +94 112439201 Fax : +94 112439203
E-Mail : lvl@sltnet.lk
DIRECTOR
Mr. P. G. D. B. Pallewatte Mr. M. R. Abeywardena Mr. J. D. N. Kekulawala Mr. A. G. R. Dissanayake Mr. K. Jayawardana
SECRETARIES
Corporate Services (Private) Limited
No. 216, De Saram Place, Colombo 10, Sri Lanka
AUDITORS
KPMG
No. 32A, Sir Mohamed Macan Markar Mawatha, Colombo 03, Sri Lanka
LAWYERS
F J & G De Saram
No 216 de Saram Place, Colombo 10, Sri Lanka.
SUBSIDIARY COMPANIES
LVL Energy Fund PLC
LVS Energy (Private) Limited
Lanka Energy International (Private) Limited Unit Energy Lanka (Private) Limited
Sapthakanya Hydro Electric Company (Private) Limited Campion Hydro (Private) Limited
Pupulaketiya Hydro Power (Private) Limited Solar Energy Investments (Private) Limited
Solar Energy Investments Pallekele (Private) Limited SEI Mathugama (Private) Limited
SEI Maho (Private) Limited
ASSOCIATE COMPANIES
Hayleys Hydro Energy (Private) Limited Neluwa Cascade Hydro Power (Private) Limited
Pawan Danavi (Private) Limited Nala Dhanavi (Private) Limited
Raj Lanka Power Company Limited Lakdhanavi Bangla Power Limited Feni Lanka Power Limited
Nividhu (Private) Limited
Nividhu Assupiniella (Private) Limited Bambarapana Hydro Power (Private) Limited LTL Energy (Private) Limited
Makari Gad Hydro Power ((Private) Limited Parambe Hydro (Private) Limited
ENV Engineering Enterprises Lanka (Private) Limited
BANKERS
Hatton National Bank PLC DFCC Bank PLC
National Development Bank PLC Sampath Bank PLC
Commercial Bank of Ceylon PLC
09
LANKA VENTURES PLC