No.540, R.A. De Mel Mawatha, Colombo 03, Sri Lanka. Contact No: 0112559800 e-mail: firstcorp@sltnet.lk
1stSeptember 2025,
Ms. Nilupa Perera
Chief Regulatory Officer Colombo Stock Exchange,
No. 4-01, West Block, World Trade Centre, Echelon Square. Colombo 1.
Dear Madam,
Millenium Housing Developers PLC
Errata - Correction to the Pages in the Audited Financial Statements for the Year ended 31stMarch 2025.
This Errata is issued to correct an unintended typo error in figures disclosed in the Financial Statements for the year ended 31stMarch 2025.
Page No 1 - corrected as Note 34 (instead of Note 35).
Page No 7- Current Loans and borrowings of Comparative figures of Company Balance sheet corrected as Rs. 72,282,600/- (instead of Rs. 72,282,604/-).
Page No 9 - Net cash from operating activities of Company Cash flow corrected as Rs. 77,978,376/- (instead of Rs. 77,978,380/-).
Note No 22.1 in Page No 37 - Company Loans and Borrowings Comparative figure corrected as Rs. 244,891,304/- (instead of Rs. 254,891,304/-)
Note No 22.1.2 in Page No 38 - Company Loans and Borrowings Comparative figure corrected as Rs. 244,891,304/- (instead of Rs. 254,891,308/-)
While regretting the error, corrected figures are now duly updated in the attached Page numbers 01,07,09,37, and 38.
This correction does not impact the material aspects of the Financial Statements. However, in the interest of full transparency and regulatory compliance, this Errata is being issued and shall be appended to the original Financial Statements as part of the record.
Thanking You., Yours faithfully,
By order of The Board of Millennium Housing Developers PLC
Deepthi Herath
Director First Corporate Solutions Ltd Company Secretaries
KPMG | Tel | +94 - 11 542 6426 |
(Chartered Accountants) | Fax | +94 - 11 244 5872 |
32A, Sir Mohamed Macan Markar Mawatha, | +94 - 11 244 6058 | |
P. 0. Box 186, | Internet | https://www.kpmg.com/lk |
Colombo 00300, Sri Lanka. |
We have audited the financial statements of Millennium Housing Developers PLC ("the Company") and the consolidated financial statements of the Company and its subsidiaries ("the Group"), which comprise the statement of financial position as at 31stMarch 2025, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policies and other explanatory information.
In our opinion, the accompanying financial statements of the Company and the Group give a true and fair view of the financial position of the Company and the Group as of 31stMarch 2025, and of their financial performances and their cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.
Basis for OpinionWe conducted our audit in accordance with Sri Lanka Auditing Standards (SLAuSs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics for professional Accountants issued by CA Sri Lanka (Code of Ethics), and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material Uncertainty Related to Going ConcernWe draw attention to Note 34 of the financial statements, which indicates that the Company's current liabilities have exceeded its current assets by Rs. 72,075,726/-and reported accumulated losses of Rs. 121,171,219/- as at 31stMarch 2025. Further, as stated in Note 22 the Group has not been able to comply with loan covenants for which recovery actions were undertaken by lender. In addition, the subsidiaries have not engaged in any continuing revenue-generating projects during the year ended 31stMarch 2025 and the subsequent period up to the date of signing these financial statements. As stated in Note 34, these events or conditions, along with other matters as set forth in Note 34, indicate that a material uncertainty exists that may cast significant doubt on the Company's and the Group's ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
KPMG, a Sri Lankan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
C. P. Jayatilake FCA Ms. S. Joseph FCA
R.M.D.B. Rajapakse FCA
M.N.M. Shameel FCA
Ms. P.M.K. Sumanasekara FCA
T. J. S. Rajakarier FCA
W. K. D. C. Abeyrathne FCA Ms. B.K.D.T.N. Rodrigo FCA Ms. C.T.K.N. Perera ACA
R. G. H. Raddella ACA
W. W. J. C. Perera FCA
G. A. U. Karunaratne FCA
R. H. Rajan FCA
A.M.R.P. Alahakoon ACA
Principals: S.R.I. Perera FCMA (UK), LLB, Attorney-at-Law, H.S. Goonewardene ACA, Ms. F.R Ziyard FCMA (UK), FCIT,
K. Somasundaram ACMA (UK), Ms. D Corea Dharmaratne
STATEMENT OF FINANCIAL POSITION
Group Company
As at 31 March 2025 2024 2025 2024
Note Rs. Rs. Rs. Rs.
Assets
Property, plant and equipment | 11 | 11,692,052 | 19,001,100 | 10,325,899 | 16,461,487 |
Investment property | 12 | 200,000,000 | 195,000,000 | - | - |
Intangible assets | 13 | - | 14,164 | - | 2,500 |
Investment in subsidiaries | 14 | - | - | 278,628,770 | 278,628,770 |
Financial assets - FVOCI | 15 | 10,740,129 | 6,160,200 | 10,740,129 | 6,160,200 |
Deferred tax assets | 23 | 1,896,667 | - | 1,896,667 | 856,044 |
Total non-current assets | 224,328,848 | 220,175,464 | 301,591,465 | 302,109,001 | |
Inventories | 16 | 1,145,000,362 | 1,647,016,795 | 283,670,225 | 384,877,519 |
Trade and other receivables | 17 | 80,845,691 | 77,968,108 | 40,344,405 | 43,210,680 |
Amounts due from related companies | 18 | 7,336,738 | 11,601,961 | 50,193,059 | 29,907,766 |
Cash and cash equivalents | 19 | 280,834,596 | 25,576,730 | 15,820,359 | 18,487,017 |
Total current assets | 1,514,017,387 | 1,762,163,594 | 390,028,048 | 476,482,982 | |
Total assets | 1,738,346,235 | 1,982,339,058 | 691,619,513 | 778,591,983 | |
Equity Stated capital | 20 | 293,802,200 | 293,802,200 | 293,802,200 | 293,802,200 |
Reserves | 21 | 17,790,613 | 13,210,684 | 17,790,613 | 13,210,684 |
Retained earnings / (Accumulated losses) | 385,132,754 | 339,944,254 | (121,171,219) | (127,339,544) | |
Equity attributable to owners of the Company | 696,725,567 | 646,957,138 | 190,421,594 | 179,673,340 | |
Total equity | 696,725,567 | 646,957,138 | 190,421,594 | 179,673,340 | |
Loans and borrowings | 22 | 31,862,706 | 72,282,600 | 31,862,706 | 72,282,600 |
Deferred tax liabilities | 23 | 47,317,395 | 14,225,508 | - | - |
Retirement benefit obligation | 24 | 7,283,032 | 6,304,597 | 7,231,439 | 5,199,404 |
Total non-current liabilities | 86,463,133 | 92,812,705 | 39,094,145 | 77,482,004 | |
Trade and other payables | 25 | 453,777,291 | 512,156,154 | 185,609,569 | 237,109,676 |
Loans and borrowings | 22 | 444,966,173 | 582,454,509 | 157,999,996 | 172,608,704 |
Amounts due to related companies | 26 | 20,048,626 | 81,366,605 | 118,494,209 | 83,431,951 |
Current tax liabilities | 1,401,198 | 1,401,200 | - | - | |
Bank overdraft | 19 | 34,964,247 | 65,190,747 | - | 28,286,308 |
Total current liabilities | 955,157,535 | 1,242,569,215 | 462,103,774 | 521,436,639 | |
Total liabilities | 1,041,620,668 | 1,335,381,920 | 501,197,919 | 598,918,643 | |
Total equity and liabilities | 1,738,346,235 | 1,982,339,058 | 691,619,513 | 778,591,983 | |
The notes form an integral part of these financial statements. |
It is certified that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 7 of 2007.
A.G.A.Kumarasinghe Finance Manager
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 ;
U.H. Dharmadasa
Chairman
29th August 2025
Colombo, Sri lanka
….............................
K.C.C. Perera
Director
STATEMENT OF CASH FLOWS
Group
Company
For the year ended 31st March 2025 Note 2025 2024 2025 2024
Rs. Rs. Rs. Rs.
Cash flows from operating activities | ||||||
Profit/ (loss) before tax | 80,431,753 | (185,686,105) | 8,913,660 | (134,985,554) | ||
Adjustments for: | ||||||
Depreciation on property, plant and equipment | 11 | 6,499,853 | 7,376,723 | 5,326,393 | 5,804,852 | |
Fair value gain on investment property | 12 | (5,000,000) | (22,500,000) | - | - | |
Amortisation on intangible assets | 13 | 14,164 | 52,496 | 2,500 | 16,558 | |
Depreciation on right of use assets | 28.1 | - | 2,153,728 | - | 2,153,728 | |
Finance costs | 8 | 78,101,846 | 135,251,134 | 28,773,903 | 55,193,258 | |
Gain on Loan modification of loans and borrowings | 8 | (25,260,955) | - | (25,260,955) | - | |
Retirement benefit obligation expense | 24 | 1,529,060 | 3,187,077 | 1,138,446 | 2,127,892 | |
Impairment losses on inventories | 16 | 221,725 | 372,353 | 66,485 | 198,065 | |
Impairment on investment in subsidiary | 14 | - | - | - | (904,016) | |
Provision for due from related parties | 18 | 4,638,096 | - | (5,528,512) | 7,100,060 | |
Gain on disposal of right of use assets | 28.1 | - | (3,217,485) | - | (3,217,485) | |
Gain on disposal of property plant and equipments | 11 | (1,115,306) | - | (1,115,306) | - | |
Interest Income | 8 | (1,472,917) | (765,644) | (745,372) | (646,402) | |
Write off trade receivable | 7 | 1,519,840 | - | - | - | |
Operating profit / (loss) before working capital changes | 140,107,159 | (63,775,723) | 11,571,242 | (67,159,044) | ||
Decrease / (Increase) in inventories | 501,794,708 | 17,224,622 | 101,140,809 | (5,884,392) | ||
(Increase) /Decrease in trade and other receivables | (822,985) | 67,974,952 | 2,866,281 | 20,261,299 | ||
(Increase) in amounts due from related companies | (372,873) | 125,242 | (14,756,781) | (31,207,389) | ||
(Decrease) / Increase in trade and other payables | (25,484,908) | (42,805,556) | (10,173,458) | 49,219,910 | ||
(Decrease)/ Increase in amounts due to related companies | (61,317,979) | 76,455,892 | 35,062,258 | 50,466,456 | ||
Cash generated from / (used in) operating activities | 553,903,122 | 55,199,429 | 125,710,351 | 15,696,840 | ||
Gratuity paid | 24 | (4,598,657) | (6,590,864) | (2,892,370) | (5,245,464) | |
Interest paid | 8 | (89,309,287) | (23,515,826) | (44,839,605) | (14,218,317) | |
Net cash from / (used in) operating activities | 459,995,178 | 25,092,738 | 77,978,376 | (3,766,941) | ||
Cash flows from investing activities | ||||||
Acquisition of property, plant and equipment | 11 | (45,805) | (833,468) | (45,805) | (258,468) | |
Proceeds from sale of property, plant and equipment | 11 | 1,970,309 | - | 1,970,309 | - | |
Interest received | 8 | 1,472,917 | 765,644 | 745,372 | 646,402 | |
Net Cash from/ (used in) investing activities | 3,397,421 | (67,824) | 2,669,876 | 387,934 | ||
Cash flows from financing activities Re-payment of borrowings | 22 | (177,908,233) | (34,740,123) | (55,028,602) | (10,000,000) | |
Lease rentals paid | 28.2 | - | (2,600,000) | - | (2,600,000) | |
Net Cash used in financing activities | (177,908,233) | (37,340,123) | (55,028,602) | (12,600,000) | ||
Net increase/ (decrease) in cash and cash equivalents | 285,484,366 | (12,315,209) | 25,619,650 | (15,979,006) | ||
Cash and cash equivalents at the beginning of the year | (39,614,017) | (27,298,808) | (9,799,291) | 6,179,715 | ||
Cash and cash equivalents at the end of the year | 19 | 245,870,349 | (39,614,017) | 15,820,359 | (9,799,291) | |
The Notes to the Financial Statements form an integral part of these Financial Statements. Figures in brackets indicate deductions.
Reserves
Group Company
As at 31 March
2025
Rs.
2024
Rs.
2025
Rs.
2024
Rs.
Capital redemption reserve (Note 21.1)
25,000,000
25,000,000
25,000,000
25,000,000
Fair value reserve (Note 21.2)
(7,209,387)
(11,789,316)
(7,209,387)
(11,789,316)
17,790,613
13,210,684
17,790,613
13,210,684
Capital redemption reserve
Capital redemption reserve built is equal to the nominal value of the preference shares already redeemed by Millennium Housing Developers PLC.
Fair value reserve
Fair value through other comprehensive income comprises of the cumulative net change in fair value of equity instruments until the investment are derecognised or impaired.
Loans and borrowings
Group
Company
As at 31 March 2025 2024 2025 2024
Company | Lender | Interest rate | Repayment terms | Outstanding as at 31.03.2025 Rs. | Outstanding as at 31.03.2024 Rs. | Security |
MC Urban Developers Limited | Sampath Bank PLC | AWPLR+2% | On Demand | 286,966,177 | 286,966,177 | Primary Mortgage of land owned by MC Urban Developers Limited, |
Interest payable of Rs. 98,686,036- and capital payable of Rs. 286,966,177/- Mn on the facilities obtained by MC Urban Developers Limited from Sampath Bank PLC remained unpaid as at 31st March 2025. As a result debt recovery action was initiated by the bank. A public auction was held on 28th December 2023 to sell the mortgaged property and no buyers were found as at that date and till the date of the approval of these Financial Statements. | ||||||
Rs. Rs. Rs. Rs.
Bank Loans (Note 22.1) | 476,828,879 | 654,737,109 | 189,862,702 | 244,891,304 | |
476,828,879 | 654,737,109 | 189,862,702 | 244,891,304 | ||
Amount payable within one year | 444,966,173 | 582,454,509 | 157,999,996 | 172,608,704 | |
Amount payable after one year | 31,862,706 | 72,282,600 | 31,862,706 | 72,282,600 | |
476,828,879 | 654,737,109 | 189,862,702 | 244,891,304 | ||
22.1 | Long term loan movement during the year Balance at the beginning of the year | 654,737,109 | 689,477,232 | 244,891,304 | 244,891,304 |
Repayment during the year | (177,908,230) | (34,740,123) | (55,028,602) | - | |
Balance at the end of the year | 476,828,879 | 654,737,109 | 189,862,702 | 244,891,304 | |
22.1 | Bank loans | ||||
Sampath Bank PLC - Loan 01 (Note 22.1.1) | 286,966,177 | 286,966,177 | - | - | |
Sampath Bank PLC - Loan 02 | - | 122,879,628 | - | - | |
Nation Trust Bank PLC (Note 22.1.2) | 189,862,702 | 244,891,304 | 189,862,702 | 244,891,304 | |
476,828,879 | 654,737,109 | 189,862,702 | 244,891,304 | ||
22.1.1 | Sampath Bank PLC - Loan 01 |
Interest bearing borrowings (Continued)
22.1.2 Nation Trust Bank PLC
Company
Lender
Interest rate
Repayment terms
Outstanding as at 31.03.2025
Rs.
Outstanding as at 31.03.2024
Rs.
Security
The loan is repayable
Primary Mortgage Bond for Rs.
over approximately 20
300 Mn over property depicted as
months starting from 9th
Lot 1 in survey plan No.3619 and
AWPLR + 2%
February 2025, with
debt service reserve account with
per annum
monthly capital
one month capital of Rs. 5 Mn and
(To be
instalments of Rs. 3
interest held under lien to the
Millenium Housing
Developers PLC
Nation Trust
Bank PLC
reviewed every
three months
million, Rs. 5 million,
and Rs. 8 million across
189,862,702
244,891,304
bank.
from the loan
three six-month periods.
granted date)
Final repayments of Rs.
12 million and Rs. 11.99
million are due in August
and September 2026,
respectively.
The loan was restructured on 9th February 2025, and a penalty interest of Rs. 25,260,955, was fully waived. This waiver was recognised as finance income in the statement of profit or loss for the period. The revised terms and conditions of the loan are disclosed above.
Following the restructuring, the loan was carried at Rs. 189,862,702, with accrued interest of Rs. 2,827,744 included under other payables. The loan was fully settled on 25th July 2025, including all outstanding capital and interest payables.
Deferred tax assets / (liabilities)
Group
Company
2025 2024 2025 2024
Rs. Rs. Rs. Rs.
At the beginning of the year
(14,225,508)
(12,898,316)
856,044
1,987,300
Recognized in the Profit and Loss
Origination of temperary differnces
(32,409,629)
(1,202,934)
(95,164)
(1,502,843)
Recognized in other comprehensive income
Reversal /(origination) of temperary differnces
1,214,410
(124,258)
1,135,788
371,587
Balance as at end of the year
(45,420,727)
(14,225,508)
1,896,667
856,044
Deferred tax assets/ (liabilities) have been recognized in respect of the following and it has been calculated by applying the effective tax rate (30%) of respective companies in the group which are liable for income tax.
Deferred tax liabilities
On property, plant and equipment On retirement benefit obligation
Group
2025 2024
Temporary Tax effect Temporary Tax effect
Difference Difference
Rs. Rs. Rs. Rs.
(407,404) (122,221) (3,798,078) (1,139,423)
51,592 15,478 6,304,597 1,891,379
On fair value of investment property (163,601,000) (49,080,300) (158,601,000) (47,580,300)
On accumulated tax losses 6,232,163 1,869,649 108,676,122 32,602,836
(157,724,649) (47,317,395) (47,418,359) (14,225,508)
Deferred tax assets
Group
2025 2024
Temporary Tax effect Temporary Tax effect
Difference Difference
Rs. Rs. Rs. Rs.
On property, plant and equipment | (909,214) | (272,764) | - | - |
On retirement benefit obligation | 7,231,439 | 2,169,432 | - | - |
6,322,225 | 1,896,667 | - | - | |
Company 2025 2024 | ||||
On property, plant and equipment On retirement benefit obligation
Temporary Tax effect Temporary Tax effect
Difference Difference
Rs. Rs. Rs. Rs.
(909,214) (272,764) (2,345,922) (703,777)
7,231,439 2,169,432 5,199,404 1,559,821
6,322,225 1,896,667 2,853,482 856,044