Lanka Ventures PlcCSELK: LVEN.N0000

Interim Financial Statements - 30th September 2024

Nov 12, 2024 at 10:27 AM UTC · Issued by Lanka Ventures Plc

FINANCIAL STATEMENTS

For the Period Ended 30 SEPTEMBER 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)		Interim period of 3 Months			Accumulated 6 Months
	Group	Company	Group	Company
	Period ended 30	Period ended 30	Period ended 30	Period ended 30
	September	September	September	September
	2024	2023	2024	2023	2024	2023	2024	2023
Revenue
Subsidiary company income	160,400	83,190	-	-	244,551	165,139	-	-
	160,400	83,190	-	-	244,551	165,139	-	-
Interest income	9,102	7,224	1,319	4,494	14,856	15,073	2,506	9,344
Other income	6,177	1,614	14,241	12,889	77,122	2,770	31,667	25,725
Operating expenses
Administrative expenses	(13,691)	(11,918)	(11,976)	(9,729)	(26,083)	(23,560)	(22,513)	(19,338)
Sales and establishment expenses	(1,092)	(775)	(822)	(741)	(1,968)	(1,926)	(1,698)	(1,643)
Other operating expenses	(3,639)	(3,520)	(1,597)	(1,211)	(8,526)	(6,654)	(3,453)	(2,201)
Direct expenses - other subsidiaries	(61,079)	(46,816)	-	-	(106,906)	(88,482)	-	-
Results from operating activities	96,178	29,000	1,165	5,702	193,046	62,360	6,509	11,887
Share of earnings from equity accounted investees	201,173	251,336	79,382	79,439	522,205	296,538	252,498	37,763
Finance cost	(90,730)	(129,610)	(797)	(2,688)	(178,012)	(282,076)	(972)	(6,559)
Profit/(loss) before income tax	206,621	150,726	79,750	82,453	537,239	76,822	258,035	43,091
Tax expense	(39,500)	(10,692)	-	-	(38,130)	(9,357)	-	-
Profit/(loss) for the period	167,121	140,034	79,750	82,453	499,109	67,465	258,035	43,091
Profit/(loss) attributable to:

Equity holders of the company	79,750	82,453	79,750	82,453	258,035	43,091	258,035	43,091
Non-controlling interest	87,371	57,581	-	-	241,074	24,374	-	-
Profit/(loss) for the period	167,121	140,034	79,750	82,453	499,109	67,465	258,035	43,091
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	(288,539)	171,325	(159,711)	97,652	(427,154)	(191,897)	(237,791)	(109,377)
Share of other comprehensive income from equity	16,861	(117,845)	9,333	(67,170)	(293,876)	(262,776)	(162,666)	(149,777)
accounted investees
Total other comprehensive income that are or
may be re-classified to profit or loss in	(271,678)	53,480	(150,378)	30,482	(721,030)	(454,673)	(400,457)	(259,154)
Items that will not be re-classified subsequently to
profit or loss
Defined benefit plan actuarial gains/(losses) net of	-	-	-	-	-	-	-	-
be re-classified to profit or loss in subsequent
period	-	-	-	-	-	-	-	-
Total other comprehensive income for the period,

net of income tax	(271,678)	53,480	(150,378)	30,482	(721,030)	(454,673)	(400,457)	(259,154)

Total comprehensive income for the period	(104,557)	193,514	(70,628)	112,935	(221,921)	(387,208)	(142,422)	(216,063)
Total comprehensive income attributable to:

Equity holders of the company	(70,628)	112,935	(70,628)	112,935	(142,422)	(216,063)	(142,422)	(216,063)
Non-controlling interest	(33,929)	80,579	-	-	(79,499)	(171,145)	-	-
Total comprehensive income for the period	(104,557)	193,514	(70,628)	112,935	(221,921)	(387,208)	(142,422)	(216,063)

Basic earnings per share (Rs.)	1.37	1.65	1.37	1.65	4.65	0.86	4.65	0.86

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
	September 2024		March 2024	September 2024	March 2024
			Audited		Audited
Assets
Non current assets
Property, plant and equipment	1,489,692	1,528,612	517	478
Right-of-use assets	9,450	12,227	6,929	9,613
Investment in equity accounted investees	6,261,881	6,525,407	3,047,403	2,975,854
Intangible assets	117,919	120,403	-	-
Financial assets measured at fair value through OCI	14,352		12,352	14,352	12,352
Total non current assets	7,893,294	8,199,001	3,069,201	2,998,297
Current assets
Loans and receivables	139,560	125,046	4,814	4,698
Amounts due from related parties	3,588	3,843	1,131	2,121
Other receivables	435,195	495,195	11,579	-
Income tax receivables	9,779	7,878	1,515	1,514
Cash and cash equivalents	394,257	222,364	60,355	64,948
Total current assets	982,379		854,326	79,394	73,281

Total assets	8,875,673	9,053,327	3,148,595	3,071,578
Equity

Stated capital	850,584	631,638	850,584	631,638
Revaluation reserve	6,416	6,416	6,416	6,416
Translation reserve	899,351	1,137,142	899,352	1,137,143
Cashflow hedge reserve	(853,237)	(690,571)	(853,237)	(690,571)
Retained earnings	2,254,027		1,951,524	2,212,936	1,954,901
Total equity attributable to equity holders of the Company	3,157,141	3,036,149	3,116,051	3,039,528
Non controlling interest	2,496,735		2,399,189	-	-
Total equity	5,653,876	5,435,338	3,116,051	3,039,528
Liabilities
Non current liabilities
Defined benefit obligation	5,642	5,041	5,642	5,041
Deferred tax liability	72,498	74,781	-	-
Interest bearing borrowings	2,583,767	2,881,315	-	-
Lease liability	1,342		4,026	1,342	4,026
Total non current liabilities	2,663,249	2,965,163	6,984	9,067
Current liabilities
Interest bearing borrowings	475,681	571,475	-	-
Lease liability	5,368	5,367	5,368	5,367
Other payables	68,200	47,993	20,192	17,616
Income tax payables	9,299		27,991	-	-
Total current liabilities	558,548		652,826	25,560	22,983
Total liabilities	3,221,797		3,617,989	32,544	32,050

Total equity and liabilities	8,875,673		9,053,327	3,148,595	3,071,578

Net assets per share (Rs.)	56.83	60.72	56.09	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
11 November 2024

LANKA VENTURES PLC

STATEMENT OF CHANGES IN EQUITY (Unaudited) (All amounts in Sri Lanka Rupees thousands)

Group
			Revaluation
	Stated capital		reserve
Balance as at 01 April 2023	631,638	6,416
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 September 2023
631,638		6,416

Balance as at 01 April 2024	631,638	6,416
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
Shares issued during the period	218,946	-
Change in ownership without change in control	-	-
in subsidiary

Dividend paid	-		-
	218,946		-
Balance as at 30 September 2024
850,584	6,416
Company

			Revaluation
	Stated Capital		reserve

Translation		Cashflow hedge		Retained	Non controlling
reserve		reserve		earnings	interest	Total
1,529,907	(647,011)	1,992,469	2,769,503	6,282,923
-	-	43,091	24,374	67,465
(109,377)	-	-	(82,520)	(191,897)
-	(149,777)	-	(113,000)	(262,776)

(109,377)		(149,777)		43,091	(171,146)	(387,208)
-		-		-	-	-
-		-		-	-	-

1,420,530		(796,788)		2,035,560	2,598,357	5,895,713

1,137,142	(690,571)	1,951,524	2,399,189	5,435,338
-	-	258,035	241,074	499,109
(237,791)	-	-	(189,362)	(427,154)
-	(162,666)	-	(131,210)	(293,876)

(237,791)		(162,666)		258,035	(79,498)	(221,921)
-	-	-	-	218,946
-	-	44,468	201,846	246,314
-		-		-	(24,802)	(24,802)
-		-		44,468	177,044	440,458

899,351	(853,237)	2,254,027	2,496,735	5,653,876

Translation		Cashflow hedge		Retained
reserve		reserve		earnings	Total

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 September 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

Shares issued during the period

Dividend paid

Balance as at 30 September 2024

631,638	6,416
-	-
-	-
-	-

-		-
-		-
-		-

631,638		6,416

631,638	6,416
-	-
-	-
-	-

-		-
218,946	-
-		-
218,946		-

850,584	6,416

1,529,908	(647,011)	1,995,846	3,516,798
-	-	43,091	43,091
(109,377)	-	-	(109,377)
-	(149,777)	-	(149,777)

(109,377)		(149,777)		43,091	(216,063)
-		-		-	-
-		-		-	-

1,420,531		(796,788)		2,038,937	3,300,734

1,137,143	(690,571)	1,954,901	3,039,528
-	-	258,035	258,035
(237,791)	-	-	(237,791)

-	(162,666)	-	(162,666)

(237,791)		(162,666)		258,035	(142,422)
-	-	-	218,946
-		-		-	-
-		-		-	218,946

899,352	(853,237)	2,212,936	3,116,051

LANKA VENTURES PLC

CONSOLIDATED STATEMENT OF CASHFLOWS (Unaudited) (All amounts in Sri Lanka Rupees thousands)

	Group	Company
For the period ended 30 September	2024	2023	2024		2023
Cash flows from operating activities
Profit/(loss) before income tax	537,239	76,822	258,035		43,091
Adjustments for:
Amortization of staff cost	74	74	74		74
Depreciation	40,429	41,274	170		170
Amortization of ROUA	2,684	1,981	2,684		1,981
Amortization of intangible assets	2,578	2,578	-		-
Share of earnings	(522,205)	(296,538)	(252,498)		(37,763)
Interest income on staff loan	(190)	(166)	(190)		(166)
Provision for defined benefit obligation	600	600	600		600
Interest income on investments	(14,856)	(15,073)	(2,506)		(9,344)
Interest expense on lease	923	858	923		858
Interest expense	175,708	279,471		-		688
	222,984	91,881	7,292		189
Changes in
Loans and receivables	(14,515)	60,019	(116)		(2,957)
Amounts due from related parties	256	(52,171)	244		1,050
Other receivables	-	50,000	(10,836)		10,913
Other payables	20,131	5,757		2,505		43,291
Cash generated from operating activities	228,856	155,486	(911)		52,486
Gratuity paid	-	(232)	-		(232)
Taxes paid	(31,979)	(1,133)	-		-
Interest paid	(223,030)	(113,331)		(923)		(1,546)
Net cash from operating activities	(26,153)	40,790	(1,834)		50,708
Cash flows from investing activities
Dividend received	107,174	-	-		-
Additions to intangible assets	(2,000)	-	(2,000)		-
Interest received	15,046	15,239	2,696		9,510
Investment in equity accounted investees	-	-	(219,508)		-
Additions to property, plant & equipment	(1,510)	(2,037)		(209)		-
Net cash from investing activities	118,710	13,202	(219,021)		9,510
Cash flows from financing activities
Dividend paid	-	-	-		-
Dividend paid to the minority shareholders	(36,295)	-	-		-
Lease rental paid	(2,684)	(1,981)	(2,684)		(1,981)
Shares issued to minority shareholders	-	-	-		-
Proceeds from Rights Issue	465,260	-	218,946		-
Cash proceeds of interest bearing borrowings	-	-	-		-
Cash repayments of interest bearing borrowings	(346,945)	(95,179)		-		(4,500)
Net cash from financing activities	79,336	(97,160)	216,262		(6,481)
Net increase/(decrease) in cash and cash equivalents	171,893	(43,168)	(4,593)		53,737
Cash and cash equivalent as at 01 April	222,364	218,684		64,948		51,960
Cash and cash equivalent as at 30 September	394,257	175,516	60,355		105,697

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.
The market price per share:

for the quarter ended 30 September		2024	2023
Highest price	Rs.	31.50	44.00
Lowest price	Rs.	27.00	35.00
Last traded price	Rs.	29.20	39.00

13 Twenty major shareholders of the Company as at 30 September 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	Dialog Finance PLC/ Fors Investment (Private) Limited	442,820	0.76
6	E.W. Balasuriya & Co. (Pvt) Ltd A/C No. 01	438,444	0.75
7	Union Investments Private Ltd	326,316	0.56
8	Mr. Hiran Anthony Cabraal	308,338	0.53
9	People's Leasing & Finance PLC/ Dr. H.S.D. Soysa & Mrs. G. Soysa	290,710	0.50
10	Mr. Amarakoon Mudiyanselage Weerasinghe	283,203	0.49
11	Akbar Brothers Pvt Ltd A/C No.1	256,517	0.44
12	People's Leasing & Finance PLC/ L.H.L.M.P. Haradasa	188,292	0.32
13	Mr. Gerald Dave Michael Ranasinghe	160,000	0.27
14	Mr. Damian Amal Cabraal	155,000	0.27
15	Mr. Arunasalam Sithampalam	140,000	0.24
16	People's Leasing & Finance PLC/ Mr. J.M.S. Brito & Mrs. B.S. Brito	125,000	0.21
17	Mr. Sinniah Sellathurai Sithambaranathan	121,634	0.21
18	Mr. Kangasu Chelvadurai Vignarajah	120,765	0.21
19	Mr. Colombapatabendige Ranjith Perera	118,350	0.20
20	Mrs. Maduwage Lakshmi De Silva	110,000	0.19
	Total
	52,210,558	89.52

Percentage of shares held by public as at 30 September 2024: 20.40%
No. of public shareholders as at 30 September 2024: 1,334
Float adjusted market capitalization as at 30 September 2024 was Rs. 347,429,955/-. 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 September 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. I.G.J. Palitha	CEO	-

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