Singer (sri Lanka) PlcCSELK: SINS.N0000

Interim Financial Statements as at 30/09/2024

Nov 12, 2024 at 9:55 AM UTC · Issued by Singer (sri Lanka) Plc

S I N G E R ( S R I L A N K A ) P L C

INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2024

Interim Financial Statements For the Six Months ended 30th September

Statement of Profit or Loss and Other Comprehensive Income

			Group			Company
For the Six Months ended 30th September	2024	2023	Change	2024	2023		Change
	Rs. '000		Rs. '000	%	Rs. '000		Rs. '000	%
Revenue	39,220,657	27,059,243	45%	35,163,893	23,804,565	48%
Cost of Sales	(24,751,354)	(18,147,154)	-36%	(24,807,040)	(18,016,943)	-38%
Direct Interest Cost	(1,970,155)	(2,468,027)	20%	-	-
Gross Profit	12,499,148	6,444,062	94%	10,356,853	5,787,622	79%
Other Income	179,506	109,632	64%	69,120	38,873	78%
Selling and Administrative Expenses	(9,128,778)	(6,625,939)	-38%	(7,521,644)	(5,485,859)	-37%
Impairment Loss on Trade and Other Receivables	(303,219)	(94,538)	-221%	(210,746)	(132,116)	-60%
Operating Profit	3,246,657	(166,783)	2047%	2,693,583	208,520	1192%
Finance Cost	(1,632,255)		(2,616,191)	38%	(1,628,373)		(2,556,053)	36%
Finance Income	684,786		1,106,663	-38%	426,463		376,768	13%
Net Finance Cost	(947,469)	(1,509,528)	37%	(1,201,910)	(2,179,285)	45%
Value Added Tax on Financial Services	(258,905)	(180,832)	-43%	(42,000)	(29,000)	-45%
Profit / (Loss) Before Tax	2,040,283	(1,857,143)	210%	1,449,673	(1,999,765)	172%
Income Tax (Expense)/ Reversal	(692,450)	336,729	-306%	(447,502)	414,070	-208%
Profit / (Loss) for the Period	1,347,833	(1,520,414)	189%	1,002,171	(1,585,695)	163%
Total Comprehensive Income for the Period, Net of Tax	1,347,833	(1,520,414)		1,002,171	(1,585,695)
Profit / (Loss) Attributable to -
Owners of the Company	1,286,678	(1,529,263)		1,002,171	(1,585,695)
Non - Controlling Interests	61,155	8,849		-	-
	1,347,833	(1,520,414)		1,002,171	(1,585,695)
Total Comprehensive Income Attributable to -
Owners of the Company	1,286,678	(1,529,263)		1,002,171	(1,585,695)
Non - Controlling Interests	61,155	8,849		-	-
Toal Comprehensive Income for the Period Net of Tax	1,347,833	(1,520,414)		1,002,171	(1,585,695)
Basic / Diluted Earnings Per Share (Rs.)	1.10	(1.36)		0.86	(1.41)
Above figures are provisional and subject to audit.

Share Prices		For the six Months ended	For the six Months ended
			30th Sep 2024		30th Sep 2023
				Rs.			Rs.
Highest				20.30		17.50
Lowest				14.50		10.90
Last Traded Price				17.30		16.70

2 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Six Months ended 30th September

Statement of Profit or Loss and Other Comprehensive Income

		Group			Company
For the Three Months ended 30th September	2024	2023	Change	2024	2023		Change
	Rs. '000	Rs. '000	%	Rs. '000	Rs. '000	%
Revenue	20,096,860	14,064,258	43%	17,929,730	12,475,403	44%
Cost of Sales	(12,824,141)	(9,666,386)	-33%	(12,855,484)	(9,666,826)	-33%
Direct Interest Cost	(958,576)	(1,232,911)	22%	-	-
Gross Profit	6,314,143	3,164,961	100%	5,074,246	2,808,577	81%
Other Income	93,236	61,474	52%	32,859	21,467	53%
Selling and Administrative Expenses	(4,558,683)	(3,391,341)	-34%	(3,711,978)	(2,780,244)	-34%
Impairment (Loss) / Reversal on Trade and Other Receivables	(127,919)	93,979	-236%	(79,054)	(21,984)	-260%
Operating Profit	1,720,777	(70,927)	2526%	1,316,073	27,816	4631%
Finance Cost	(750,352)	(1,213,579)	38%	(747,996)	(1,187,127)	37%
Finance Income	323,591	614,907	-47%	219,172	250,613	-13%
Net Finance Cost	(426,761)	(598,672)	29%	(528,824)	(936,514)	44%
Value Added Tax on Financial Services	(146,135)	(108,859)	-34%	(22,000)	(15,000)	-47%
Profit / (Loss) Before Tax	1,147,881	(778,458)	247%	765,249	(923,698)	183%
Income Tax (Expense)/ Reversal	(386,648)	162,557	-338%	(235,092)	222,554	-206%
Profit / (Loss) for the Period	761,233	(615,901)	224%	530,157	(701,144)	176%
Profit Attributable to -
Owners of the Company	718,996	(635,464)		530,157	(701,144)
Non- Controlling Interests	42,237	19,563		-	-
Profit for the Period	761,233	(615,901)		530,157	(701,144)
Toal Comprehensive Income Attributable to -
Owners of the Company	718,996	(635,464)		530,157	(701,144)
Non Controlling Interests	42,237	19,563		-	-
Total Comprehensive Income for the period Net of Tax	761,233	(615,901)		530,157	(701,144)
Basic / Diluted Earnings Per Share (Rs.)	0.62	(0.56)		0.45	(0.62)
Above figures are provisional and subject to audit.
Share Prices	For the Three months ended	For the Three months ended
		30th September 2024	30th September 2023
			Rs.		Rs.
Highest			17.80		17.50
Lowest			14.50		14.30
Last Traded Price			17.30		16.70

SINGER (SRI LANKA) PLC

Interim Financial Statements For the Six Months ended 30th September

Statement of Financial Position

		Group			Company
As at	30th September	30th September	31st March	30th September	30th September	31st March
	2024	2023	2024	2024	2023	2024
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
ASSETS
Non-Current Assets
Property, Plant and Equipment	8,023,911	7,538,741	8,142,751	6,985,680	3,733,956	7,138,161
Right -of- Use Assets	4,698,142	3,999,667	4,819,975	3,994,024	3,339,779	4,071,277
Intangible Assets	486,600	517,517	504,399	395,256	401,098	406,818
Investment in Subsidiaries	-	-	-	1,760,085	2,963,023	1,760,085
Other Investments	22,326	23,645	22,326	20,141	21,524	20,141
Trade and Other Receivables	14,478,064	7,840,150	10,690,226	687,129	702,201	822,170
Deferred Tax Assets	666,137	1,360,683	634,255	543,237	1,918,005	613,823
	28,375,180	21,280,403	24,813,932	14,385,552	13,079,586	14,832,475
Current Assets
Inventories	19,439,170	20,239,339	21,600,921	18,945,633	17,981,034	21,207,439
Loans due from Related Parties	-	-	-	-	218,000	-
Income Tax Receivables	244,201	418,483	324,833	244,201	412,914	324,833
Trade and Other Receivables	40,255,988	28,075,802	37,846,591	16,458,173	12,044,946	19,638,963
Amounts Due from Related Parties	21,023	33,265	46,021	147,316	33,265	87,344
Financial Assets at FVTPL	-	-	463,761	-	-	-
Deposits with Banks	1,196,597	375,904	702,898	932,320	-	448,875
Short term Investments	2,081,205	7,057,268	2,478,591	-	-	-
Cash and Cash Equivalents	2,106,351	3,789,136	5,488,327	1,451,761	2,210,792	1,658,031
	65,344,535	59,989,197	68,951,943	38,179,404	32,900,951	43,365,485
Total Assets	93,719,715	81,269,600	93,765,875	52,564,956	45,980,537	58,197,960
EQUITY AND LIABILITIES
Equity
Stated Capital	1,138,857	626,048	1,138,857	1,138,857	626,048	1,138,857
Other Components of Equity	3,267,761	1,674,045	3,327,049	2,940,753	1,194,543	2,948,946
Revenue Reserves	7,891,980	6,313,724	6,931,330	4,861,791	3,241,229	4,236,741
Total Equity Attributable to Owners of the	12,298,598	8,613,817	11,397,236	8,941,401	5,061,820	8,324,543
Company
Non-Controlling Interest	1,107,665	1,955,753	1,046,509		-	-
Total Equity	13,406,263	10,569,570	12,443,745	8,941,401	5,061,820	8,324,543
Non-Current Liabilities
Interest - Bearing Loans and Borrowings	8,883,887	10,397,000	8,405,000	4,300,000	8,100,000	6,200,000
Lease Liability	4,408,918	3,769,556	4,524,408	3,735,422	3,114,414	3,770,974
Employee Benefit Obligations	1,295,340	1,076,040	1,229,148	1,118,563	745,236	1,058,874
Security Deposits	1,716,237	1,474,693	1,560,728	1,716,237	1,474,693	1,560,728
Other Financial Liabilities	4,901,017	3,758,694	3,252,235	-		-
Deferred Revenue	90,579	64,248	77,468	90,579	64,248	77,468
Other Non - Current Liabilities	198,475	189,215	175,427	198,475	189,215	175,427
	21,494,453	20,729,446	19,224,414	11,159,276	13,687,806	12,843,471
Current Liabilities
Trade and Other Payables	11,355,920	9,991,975	12,170,616	10,112,808	8,218,175	11,115,151
Deferred Revenue	374,149	285,687	359,490	374,135	285,637	359,440
Dividends Payable	81,919	64,094	59,729	75,446	49,146	49,083
Amounts Due to Related Parties	986,495	537,393	1,527,754	1,500,836	1,386,891	2,144,825
Income Tax Payable	248,818	106,207	108,185	-	-	-
Other Financial Liabilities	19,017,536	17,776,890	18,927,276	-	-	-
Lease Liability	1,095,310	1,004,537	1,084,239	936,425	924,545	974,538
Interest - Bearing Loans and Borrowings	24,282,431	18,450,823	25,312,181	18,485,300	15,321,318	20,377,748
Bank Overdrafts	1,376,421	1,752,978	2,548,247	979,329	1,045,199	2,009,161
	58,818,999	49,970,584	62,097,715	32,464,279	27,230,911	37,029,946
Total Liabilities	80,313,452	70,700,030	81,322,129	43,623,555	40,918,717	49,873,417
Total Equity and Liabilities	93,719,715	81,269,600	93,765,875	52,564,956	45,980,537	58,197,960
Net Assets per Share (Rs.)	10.45	7.64	9.76	7.66	4.49	7.13

I certify that the above Financial Statements comply with the requirments of the Companies Act No.07 of 2007.

(Sgd.)

Shalinka Seresinhe

Finance Director

Above figures are provisional and subject to audit.

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Signed for and on behalf of the Board by,

(Sgd.)	(Sgd.)
A. M. Pandithage	Mahesh Wijewardene
Chairman	Director/Group Chief Executive Officer
Colombo,
12th November 2024

4 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Six Months ended 30th September

Statement of Changes in Equity

For the Six Months ended 30th September			Attributable to equity holders of the Company
Group	Stated	Other Components of Equity		Revenue Reserves	Total	Non-	Total Equity
	Capital	Statutory	Regulatory	Revaluation	Fair Value	General	Retained		Controlling
			Interest
		Reserve	Allowance	Reserves	of Financial	Reserves	Earnings
			Reserve		Assets
					at FVOCI
					Reserve
	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000 Rs.000	Rs.000	Rs.000
Balance as at 31st March 2023	626,048	244,215		1,350,892	5,165	2,700,000	5,216,760	10,143,080	1,946,904	12,089,984
Realisation of Revaluation Surplus	-	-		(12,425)	-	-	12,425	-	-	-
Transferred to/(from) during the period			86,198				(86,198)	-
Loss for the period	-	-		-	-	-	(1,529,263) (1,529,263)	8,849	(1,520,414)
Total comprehensive income for the period	-	-	-	-	-	-	(1,529,263) (1,529,263)	8,849	(1,520,414)
Balance as at 30th September 2023	626,048	244,215	86,198	1,338,467	5,165	2,700,000	3,613,724	8,613,817	1,955,753	10,569,570
Realisation on Revaluation Surplus	-	-		(15,806)	-	-	15,806	-	-	-
Transferred to/(from) during the period	-	81,079	(35,105)	-	-	-	(45,974)	-	-	-
								-		-
Profit for the Period							1,369,450	1,369,450	59,664	1,429,114
Other Comprehensive Income								-		-
Revaluation Gain on Land and Buildings				724,044				724,044		724,044
Actuarial Loss on Employee Benefit	-	-			-	-	(60,443)	(60,443)	3,488	(56,955)
Obligations
Fair Value Change in Equity instruments
designated at fair value through other	-	-		-	(1,332)	-	-	(1,332)	13	(1,319)
comprehensive income
								-		-
Related Taxes								-		-
Deferred Tax on Revaluation Gain on				(217,179)				(217,179)		(217,179)
Land and Buildings
Deferred Tax on Actuarial loss on	-	-		-	-	-	18,133	18,133	(1,047)	17,086
Employee Benefit Obligations
Deferred Tax on Equity Investments at	-	-		-	415	-	-	415	-	415
FVOCI-change in fair value
Total Other Comprehensive Income for	-	-		506,864	(917)	-	(42,310)	463,637	2,455	466,092
the Period
Total Comprehensive Income for the Period	-	-		506,864	(917)	-	1,327,140	1,833,087	62,119	1,895,206
								-
Transactions with Owners of the								-		-
Company, Recognised Directly in Equity
Final Dividend - 2022/2023	-	-		-	-	-	-	-	(32,449)	(32,449)
Total Distributions to Owners of the	-	-		-	-	-	-	-	(32,449)	(32,449)
Company
New Share issue to Minority Shareholders	512,809							512,809		512,809
of the Amalgamated Companies
Recognition of Amalgamation Reserve				1,116,888			(679,366)	437,522	(938,913)	(501,391)
through the Equity
Total Transactions with Owners of the	512,809			1,116,888			(679,366)	950,331	(971,362)	(21,031)
Company, Recognised Directly in Equity
Balance at 31st March 2024	1,138,857	325,294	51,093	2,946,413	4,248	2,700,000	4,231,330	11,397,237	1,046,510	12,443,745
Realisation of Revaluation Surplus	-	-		(8,194)	-	-	8,194	-	-	-
Transferred to/(from) during the period			(51,093)				51,093	-		-
Profit for the period	-	-		-	-	-	1,286,678	1,286,678	61,155	1,347,833
Total comprehensive income for the	-	-	(51,093)	(8,194)	-	-	1,345,965	1,286,678	61,155	1,347,833
period
Interim Dividend -2024/25	-	-	-	-	-	-	(385,314)	(385,314)	-	(385,314)
Total Distributions to Owners of the	-	-	-	-	-	-	(385,314)	(385,314)	-	(385,314)
Company
								-		-
Balance at 30th September 2024	1,138,857	325,294	-	2,938,219	4,248	2,700,000	5,191,981	12,298,601 1,107,664	13,406,264

SINGER (SRI LANKA) PLC

Interim Financial Statements For the Six Months ended 30th September

Statement of Changes in Equity

For the Six Months ended 30th September		Capital	Other	Revenue Reserve
Company		Reserve	Component
			of Equity
	Stated	Revaluation	Fair Value	General	Retained	Total Equity
	Capital	Reserves	Reserve	Reserves	Earnings
	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000
Balance as at 31st March 2023	626,048	1,199,234	3,503	2,700,000	2,118,730	6,647,515
Realisation of Revaluation Surplus	-	(8,194)	-	-	8,194	-
Loss for the period	-	-	-	-	(1,585,695)	(1,585,695)
Total comprehensive income for the period	-	-	-	-	(1,577,501)	(1,577,501)
						-
Balance at 30th September 2023	626,048	1,191,040	3,503	2,700,000	541,229	5,061,820

Realisation on Revaluation Surplus

Profit for the Period

Other Comprehensive Income Revaluation gain on Land & Building Actuarial Loss on Employee Benefit Obligations

Fair Value Change in Equity instruments designated at fair value through other comprehensive income

Related Taxes

Deferred Tax on Revaluation Gain on Land & Buildings Deferred Tax on Actuarial loss on Employee Benefit Obligations

Deferred Tax on Equity Investments at FVOCI-change in fair value

					-
-	(12,291)	-	-	12,291	-
					-
				586,850	586,850
					-
					-
	724,044				724,044
-	-	-	-	(66,535)	(66,535)
-	-	(1,384)	-	-	(1,384)
					-
					-
	(217,179)				(217,179)
-	-	-	-	19,961	19,961
-	-	415	-	-	415

Total Other Comprehensive Income for the Period	-	506,865	(969)	-	(46,574)	459,322
Total Comprehensive Income for the Period	-	506,865	(969)	-	540,276	1,046,172
Transactions with Owners of the Company, Recognised
Directly in Equity
New Share issue to Minority Shareholders of the Amalgamated
Companies	512,809					512,809
Recognition of Amalgamation Reserve through the Equity		1,256,702			(254,102)	1,002,600
Total Transactions with Owners of the Company,	512,809	1,256,702			(254,102)	1,515,408
Recognised Directly in Equity
						-
Balance at 31st March 2024	1,138,857	2,946,413	2,534	2,700,000	1,536,741	8,324,543
Realisation of Revaluation Surplus	-	(8,194)	-		8,194	-

Profit for the period	-	-	-		1,002,171	1,002,171

Total comprehensive income for the period	-	(8,194)	-		1,010,365	1,002,171
Transactions with Owners of the Company, Recognised
Directly in Equity
Distributions to Owners of the Company
Interim Dividend - 2024/2025	-		-	-	(385,314)	(385,314)
Total Distributions to Owners of the Company	-		-	-	(385,314)	(385,314)

Balance at 30th September 2024	1,138,857	2,938,219	2,534	2,700,000	2,161,791	8,941,401

6 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Six Months ended 30th September

STATEMENT OF CASH FLOWS

For the Six Months ended 30th September	Group		Company
2024	2023	2024	2023
	Rs. '000	Rs. '000	Rs. '000	Rs. '000
Cash Flows from/(used in) Operating Activities
Net Profit/(Loss) before Income Tax Expense	2,040,283	(1,857,143)	1,449,673	(1,999,765)
Adjustments for:
Depreciation on Property, Plant and Equipment	374,737	394,691	290,991	274,490
Amortization of Intangible Assets	29,136	28,102	21,096	19,325
Amortization of Right of Use Assets	582,242	498,010	509,368	428,794
Loss/ ( Gain) on Disposal of Property, Plant and Equipment	(8,030)	318	(7,762)	318
Interest Expenses	1,684,125	2,667,334	1,628,373	2,556,053
Interest Income	(255,504)	(783,657)	(29,385)	(66,384)
Impairment/(Reversal) of Inventories	95,089	204,079	95,089	56,986
Impairment on Trade and Other Receivables	303,219	94,538	210,746	130,385
Provision for Retiring Gratuity	105,902	100,694	90,547	77,140
Operating Profit before Working Capital Changes	4,951,199	1,346,966	4,258,736	1,477,342
(Increase)/Decrease in Inventories	2,066,661	(216,080)	2,166,718	(109,093)
Increase in Debtors falling Due after one Year	(4,091,057)	(160,912)	(75,706)	(94,903)
(Increase)/Decrease in Debtors falling Due within one year	(2,409,398)	160,426	3,180,792	(1,385,186)
(Increase) / Decrease in Dues from Related Parties	24,998	57,868	(59,972)	121,559
Increase/(Decrease) in Dues to Related Parties	(708,286)	(292,275)	(822,179)	139,902
Increase/(Decrease) in Security Deposits	76,350	(63,495)	76,350	(63,495)
Increase in Trade and Other Payables	(812,602)	2,699,427	(996,078)	1,995,548
Increase in Deferred Liabilities	27,771	57,474	27,807	57,489
Cash Generated from/(used in) Operations	(874,363)	3,589,399	7,756,468	2,139,163
Finance Costs Paid	(1,301,486)	(2,344,703)	(1,288,616)	(2,268,077)
Retiring Gratuity Paid	(39,711)	(84,995)	(30,858)	(56,622)
Income Tax Paid	(503,068)	(359,198)	(296,283)	(65,108)
Net Cash from/(used in) Operating Activities	(2,718,628)	800,503	6,140,711	(250,644)
Cash Flows from /(used in) Investing Activities
Acquisition of Property, Plant and Equipment and Intangible Assets	(271,010)	(304,022)	(151,820)	(168,735)
Proceeds from Disposal of Property Plant and Equipment	11,806	396	11,538	396
(Acquisition)/Disposal of Marketable Securities	861,147	(5,043,276)	-	-
Withdrawal of Bank Deposits	-	1,038,093	-	-
Net Cash flows from loans given to related Companies				50,000
Interest Income Received	255,504	783,657	29,385	66,384
Net Cash Flows from/(used in) Investing Activities	857,447	(3,525,152)	(110,897)	(51,955)
Cash Flows from/(used in) Financing Activities
Net proceeds from/(settlement to) Interest - Bearing Loans and Borrowings	(531,426)	265,585	(3,773,012)	1,659,645
Net settlements to Lease Creditors	(887,744)	(653,200)	(774,651)	(546,260)
Increase in Customer Deposit Liabilities	1,739,042	2,339,980	-	-
Dividends Paid	(175,143)	(50)	(175,143)	(37)
Net Cash Flows from/(used in) Financing Activities	144,729	1,952,315	(4,722,806)	1,113,348
Net Increase /(Decrease) in Cash and Cash Equivalents	(1,716,452)	(772,334)	1,307,008	810,749
Cash and Cash Equivalents at the Beginning of the Year	3,642,978	2,808,492	97,745	354,844
Cash and Cash Equivalents as at the end of Period	1,926,527	2,036,158	1,404,752	1,165,593
ANALYSIS OF CASH & CASH EQUIVALENTS
Favourable balances
Cash in hand and at bank	3,302,948	3,789,136	2,384,081	2,210,792
Unfavourable balances
Bank overdrafts	(1,376,421)	(1,752,978)	(979,329)	(1,045,199)
	1,926,527	2,036,158	1,404,752	1,165,593

SINGER (SRI LANKA) PLC

Interim Financial Statements For the Six Months ended 30th September

Notes to the Financial Statements

BASIS OF PREPARATION AND GROUP'S ACCOUNTING POLICIES
The interim condensed consolidated financial statements for the six months ended 30th September 2024 have been prepared in accordance with LKAS 34 Interim Financial Reporting
The Financial Statements for the period ended 30th September 2024, includes "the Company" referring to Singer (Sri Lanka) PLC, as the holding company and "the Group" referring to the companies whose accounts have been consolidated therein
The interim condensed Consolidated Financial Statements do not include all the information and disclosures required in the Annual Financial
Statements, and should be read in conjunction with the Group's Annual Consolidated Financial Statements as at 31 March 2024
The presentation and classification of the Financial Statements of the previous period have been amended, where relevant, for better presentation and to be comparable with those of the current period.
The interim Condensed Financial Statements are presented in Sri Lankan Rupees (LKR) and all values are rounded to the nearest thousand except when otherwise indicated
Fair Value measurement and related fair value disclosures - Financial Instruments

	Group	Company
1.1	2024	2024 March	2024	2024 March	Level
September		September

	Rs. '000	Rs."000"	Rs. '000	Rs."000"
Recurring Fair Value Measurements	22,326	22,326	20,141	20,141	3 Financial Assets at FVOCI
Investment in Equity Securities	22,326	22,326	20,141	20,141

1.2 Impact of Recent Economic Conditions

The Directors are continuously monitoring the existing and the anticipated effects from the external environment, as well as the resulting consequences to the company in order to take appropriate measures to manage the impact.

(i) Interest rates

LKR interest rates in the domestic market reduced marginally during the six months ended September 30, 2024 with the policy measures adopted by CBSL The LKR interest rates are expected to stabilize at current levels, with the decline of inflation in the domestic economy, coupled with resultant improvements of the economic condition of the country with the engagement of the IMF program and the Debt Optimization program.

Following measures were taken to reduce/manage the debt level of the company

Extend credit received from suppliers for purchase of Inventories to reduce borrowings.
Continuous control and monitoring measures taken to improve the recoveries from debtors to reduce the borrowings
Strategic initiatives driven by the management to prioritise essential capital expenditure
A focused effort to reduce Inventory thereby reducing borrowings

ii) Exchange Rates

The LKR/USD continued to be at 295-305 levels due to the prudent policy measures adopted by CBSL,along with the resultant decline in importer demand and improvement of the Balance of Payment of the country.

The following measures were taken to reduce the impact of a significant depreciation of the Rupee;

Implemented prudent strategies to revise price in a timely manner based on market outlook
Entering into forward rate contracts to mitigate foreign currency risk

8 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Six Months ended 30th September

Notes to the Financial Statements

iii) Other Considerations

The VAT change implemented with effect from 01st January 2024, which resulted in panic buying before the VAT hike in December 2023, resulted in a reduction in consumer demand in the short term.

The escalation of violence along the red sea will increase the price of products imported to the country and may see delays in receiving products in the near term.

Despite the current slow down of the economy,the marketing and business development teams of the group continues to pursue new business to diversify the risk arising due to negative externalities ,whilst the operational teams focus on improving production efficiencies and reducing costs in order to increase the gross profit margins.

2.0 Segmental Analysis of Company Net Turnover is as follows:

		Three Months ended	Three Months ended	Six Months ended	Six Months ended
		30th September 2024		30th September 2023	30th September 2024	30th September 2023
		Rs'000	Rs'000	Rs'000	Rs'000
Consumer Electronics	2,852,037		889,830	4,966,781	1,805,869
Financial Services	1,276,543		986,669	2,820,500	2,055,491
Furniture	916,866		793,949	1,930,710	1,745,236
Home Appliances	6,348,420		4,306,267	13,729,036	8,880,535
IT products	4,574,318		3,698,717	8,333,279	6,198,976
Sewing Machines	552,935		472,997	1,052,095	899,242
Other	1,408,611		1,326,974	2,331,492	2,219,216
		17,929,730		12,475,403	35,163,893	23,804,565
2.1 Segmental Analysis of Company Profits	Before Tax is as follows:

		Three Months ended	Three Months ended	Six Months ended	Six Months ended
		30th September 2024	30th September 2023	30th September 2024	30th September 2023
		Rs'000	Rs'000	Rs'000	Rs'000
Consumer Electronics	285,848		(75,609)	476,926	5,802
Financial Services	312,513		175,569	678,014	376,822
Furniture	11,701		(7,760)	62,270	(9,727)
Home Appliances	492,110		11,841	1,186,747	(39,330)
IT products	171,534		(30,238)	331,960	1,341
Sewing Machines	49,500		(16,947)	98,779	2,733
Other	71,921		(7,056)	69,634	2,995
Impairment (Loss)/Reversal on Trade and
Other Receivables	(79,054)		(21,984)	(210,746)	(132,116)
Operating Profit	1,316,073		27,816	2,693,583	208,520
Net Finance Cost	(528,824)		(936,514)	(1,201,910)	(2,179,285)
VAT on Financial Services	(22,000)		(15,000)	(42,000)	(29,000)
Profit /(Loss) Before Tax	765,249		(923,698)	1,449,673	(1,999,765)

SINGER (SRI LANKA) PLC

Interim Financial Statements For the Six Months ended 30th September

Notes to the Financial Statements

2.2 Segmental Analysis of Group Net Turnover is as follows:

	Three Months ended	Three Months ended	Six Months ended	Six Months ended
	30th September 2024	30th September 2023	30th September 2024	30th September 2023
	Rs'000	Rs'000	Rs'000	Rs'000
Consumer Electronics	2,852,037		889,830	4,966,781	1,805,869
Financial Services	3,441,504		2,564,305	6,873,867	5,286,350
Furniture	916,866		793,949	1,930,710	1,745,236
Home Appliances	6,350,589		4,310,395	13,732,432	8,889,731
IT products	4,574,318		3,698,717	8,333,279	6,198,976
Sewing Machines	552,935		473,144	1,052,095	899,446
Other	1,408,611		1,333,918	2,331,492	2,233,635
	20,096,860		14,064,258	39,220,657	27,059,243
2.3 Segmental Analysis of Group Profits Before Tax is as follows:

	Three Months ended	Three Months ended	Six Months ended	Six Months ended
	30th September 2024		30th September 2023	30th September 2024	30th September 2023
	Rs'000		Rs'000	Rs'000	Rs'000
Consumer Electronics	290,241		(75,609)	476,926	5,802
Financial Services	754,248		(31,425)	1,297,307	104,359
Furniture	11,701		(7,760)	62,270	(9,727)
Home Appliances	498,567		28,884	1,209,986	(78,434)
IT Products	171,534		(30,238)	331,960	1,341
Sewing Machines	49,500		(46,608)	98,779	(108,928)
Other	72,904		(2,150)	72,648	13,342
Impairment (Loss) / Reversal on Trade and
Other Receivables	(127,919)		93,979	(303,219)	(94,538)
Operating Profit/ (Loss)	1,720,776		(70,927)	3,246,657	(166,783)
Net Finance Cost	(426,761)		(598,672)	(947,469)	(1,509,528)
VAT on Financial Services	(146,134)		(108,859)	(258,905)	(180,832)
Profit /(Loss) Before Tax	1,147,881		(778,458)	2,040,283	(1,857,143)
3 STATED CAPITAL
3.1

					30th September 2024		31st March 2024
Value-Ordinary Shares (Rs.)					1,138,856,653		1,138,856,653
Number of Ordinary Shares at the end of the period			1,167,617,912		1,167,617,912
Voting Rights					One Vote per Ordinary	One Vote per Ordinary
					Share	Share

10 SINGER (SRI LANKA) PLC

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