Singer (sri Lanka) PlcCSELK: SINS.N0000

Interim Financial Statements as at 31/12/2024

Feb 3, 2025 at 10:11 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 NINE

MONTHS ENDED 31ST DECEMBER 2024

Interim Financial Statements For the Nine Months ended 31st December

Statement of Profit or Loss and Other Comprehensive Income

		Group			Company
For the Nine Months ended 31st December	2024	2023	Change	2024	2023		Change
	Rs. '000	Rs. '000	%	Rs. '000		Rs. '000	%
Revenue	64,101,925	53,826,202	19%	57,670,478	48,937,535	18%
Cost of Sales	(40,651,994)	(37,113,092)	-10%	(40,767,206)	(37,072,045)	-10%
Direct Interest Cost	(3,004,012)	(3,675,513)	18%	-	-
Gross Profit	20,445,919	13,037,597	57%	16,903,272	11,865,490	42%
Other Income	289,234	195,843	48%	97,897	168,373	-42%
Selling and Administrative Expenses	(14,282,624)	(10,891,663)	-31%	(11,844,134)	(9,080,604)	-30%
Impairment Loss on Trade and Other Receivables	(481,385)	(356,782)	-35%	(286,848)	(434,151)	34%
Operating Profit	5,971,144	1,984,995	201%	4,870,187	2,519,108	93%
Finance Cost	(2,414,960)	(3,730,864)	35%	(2,407,803)		(3,649,830)	34%
Finance Income	1,016,250	1,688,405	-40%	672,198		643,785	4%
Net Finance Cost	(1,398,710)	(2,042,459)	32%	(1,735,605)	(3,006,045)	42%
Value Added Tax on Financial Services	(414,053)	(272,829)	-52%	(62,000)	(54,000)	-15%
Profit/(Loss) Before Tax	4,158,381	(330,293)	1359%	3,072,582	(540,937)	668%
Income Tax Expense	(1,382,844)	(147,505)	-837%	(952,501)	(1,850)	51387%
Profit/(Loss) for the Period	2,775,537	(477,798)	681%	2,120,081	(542,787)	491%
Total Comprehensive Income for the Period, Net of Tax	2,775,537	(477,798)		2,120,081	(542,787)
Profit / (Loss) Attributable to -
Owners of the Company	2,661,696	(521,550)		2,120,081	(542,787)
Non - Controlling Interests	113,840	43,752		-	-
	2,775,537	(477,798)		2,120,081	(542,787)
Total Comprehensive Income Attributable to -
Owners of the Company	2,661,696	(521,550)		2,120,081	(542,787)
Non - Controlling Interests	113,840	43,752		-	-
Toal Comprehensive Income for the Period Net of Tax	2,775,537	(477,798)		2,120,081	(542,787)
Basic / Diluted Earnings Per Share (Rs.)	2.28	(0.46)		1.82	(0.48)
Above figures are provisional and subject to audit.

Share Prices	For the Nine Months ended	For the Nine Months ended
		31st Dec 2024			31st Dec 2023
			Rs.			Rs.
Highest			26.80		17.50
Lowest			14.50		10.90
Last Traded Price			26.00		12.00

2 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Nine Months ended 31st December

Statement of Profit or Loss and Other Comprehensive Income

		Group			Company
For the Three months ended 31st December	2024	2023	Change	2024	2023		Change
	Rs. '000	Rs. '000	%	Rs. '000	Rs. '000	%
Revenue	24,881,268	26,766,959	-7%	22,506,585	25,132,970	-10.4%
Cost of Sales	(15,900,640)	(18,965,938)	16%	(15,960,166)	(19,055,102)	16.2%
Direct Interest Cost	(1,033,857)	(1,207,486)	14%	-	-	-
Gross Profit	7,946,771	6,593,535	21%	6,546,419	6,077,868	7.7%
Other Income	109,728	86,211	27%	28,777	129,500	-77.8%
Selling and Administrative Expenses	(5,153,846)	(4,265,724)	-21%	(4,322,490)	(3,594,745)	-20.2%
Impairment Loss on Trade and Other Receivables	(178,166)	(262,244)	32%	(76,102)	(302,035)	74.8%
Operating Profit	2,724,487	2,151,778	27%	2,176,604	2,310,588	-5.8%
Finance Cost	(782,705)	(1,114,673)	30%	(779,430)	(1,093,777)	28.7%
Finance Income	331,464	581,742	-43%	245,735	267,017	-8.0%
Net Finance Cost	(451,241)	(532,931)	15%	(533,695)	(826,760)	35.4%
Value Added Tax on Financial Services	(155,148)	(91,997)	-69%	(20,000)	(25,000)	20.0%
Profit Before Tax	2,118,098	1,526,850	39%	1,622,909	1,458,828	11.2%
Income Tax Expense	(690,394)	(484,234)	-43%	(504,999)	(415,920)	-21.4%
Profit for the Period	1,427,704	1,042,616	37%	1,117,910	1,042,908	7.2%
Profit Attributable to -
Owners of the Company	1,375,019	1,007,713		1,117,910	1,042,908
Non- Controlling Interests	52,685	34,903		-	-
Profit for the Period	1,427,704	1,042,616		1,117,910	1,042,908
Toal Comprehensive Income Attributable to -
Owners of the Company	1,375,019	1,007,713		1,117,910	1,042,908
Non Controlling Interests	52,685	34,903		-	-
Total Comprehensive Income for the period Net of Tax	1,427,704	1,042,616		1,117,910	1,042,908
Basic / Diluted Earnings Per Share (Rs.)	1.18	0.89		0.96	0.93
Above figures are provisional and subject to audit.
Share Prices	For the Three months ended	For the Three months ended
		31st December 2024	31st December 2023
			Rs.		Rs.
Highest			26.80		16.70
Lowest			16.80		11.40
Last Traded Price			26.00		12.00

SINGER (SRI LANKA) PLC

Interim Financial Statements For the Nine Months ended 31st December

Statement of Financial Position

			Group			Company
As at		31st December	31st December	31st March	31st December	31st December	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	8,134,554	7,501,724	8,142,751	7,076,425	3,706,727	7,138,161
Right -of- Use Assets	4,788,310	4,333,774	4,819,975	4,109,813	3,658,115	4,071,277
Intangible Assets	482,619	506,438	504,399	386,809	392,142	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	16,014,459	9,285,332	10,690,226	682,806	891,547	822,170
Deferred Tax Assets	587,026	954,356	634,255	441,586	1,507,784	613,823
	30,029,294	22,605,269	24,813,932	14,477,665	13,140,862	14,832,475
Current Assets
Inventories	19,904,250	16,513,150	21,600,921	19,448,858	13,732,961	21,207,439
Loans due from Related Parties	-	-	-	-	175,000	-
Income Tax Receivables	428,920	430,808	324,833	428,920	427,314	324,833
Trade and Other Receivables	46,280,423	36,496,552	37,846,591	18,927,399	19,420,667	19,638,963
Amounts Due from Related Parties	115,994	25,084	46,021	83,265	96,173	87,344
Financial Assets at FVTPL	-	427,879	463,761	-	-	-
Deposits with Banks	1,453,218	389,510	702,898	1,184,491	-	448,875
Short term Investments	2,144,473	6,181,540	2,478,591	-	-	-
Cash and Cash Equivalents	3,997,952	4,146,136	5,488,327	2,299,687	2,753,682	1,658,031
	74,325,230	64,610,659	68,951,943	42,372,620	36,605,797	43,365,485
Total Assets	104,354,524	87,879,297	93,765,875	56,850,285	49,746,659	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	1,660,773	3,327,048	2,940,753	1,190,446	2,948,946
Revenue Reserves	9,008,983	7,334,709	6,931,330	5,721,685	4,288,234	4,236,741
Total Equity Attributable to Owners of the	13,415,601	9,621,530	11,397,235	9,801,295	6,104,728	8,324,543
Company
Non-Controlling Interest	1,160,351	1,958,207	1,046,509	-	-	-
Total Equity	14,575,952	11,579,737	12,443,744	9,801,295	6,104,728	8,324,543
Non-Current Liabilities
Interest - Bearing Loans and Borrowings	13,805,825	9,355,000	8,405,000	6,349,800	7,150,000	6,200,000
Lease Liability	4,463,251	4,144,405	4,524,408	3,795,041	3,498,214	3,770,974
Employee Benefit Obligations	1,337,405	1,097,720	1,229,148	1,155,899	758,535	1,058,874
Security Deposits	1,826,355	1,517,966	1,560,728	1,826,355	1,517,966	1,560,728
Other Financial Liabilities	5,664,693	3,319,656	3,252,235	-		-
Deferred Revenue	118,946	77,022	77,468	118,946	77,022	77,468
Other Non - Current Liabilities	243,162	170,328	175,427	243,162	170,328	175,427
	27,459,637	20,345,466	19,224,414	13,489,203	13,172,065	12,843,471
Current Liabilities
Trade and Other Payables	11,933,441	11,552,955	12,170,616	10,825,606	9,427,133	11,115,151
Deferred Revenue	441,822	294,107	359,490	441,808	294,057	359,440
Dividends Payable	63,323	65,872	59,729	56,852	49,146	49,083
Amounts Due to Related Parties	1,179,564	2,383,125	1,527,754	1,654,784	3,341,625	2,144,825
Income Tax Payable	695,923	85,642	108,185	397,738	-	-
Other Financial Liabilities	19,415,841	17,539,353	18,927,276	-	-	-
Lease Liability	1,088,024	1,015,468	1,084,239	967,287	882,428	974,538
Interest - Bearing Loans and Borrowings	26,856,694	22,439,477	25,312,181	19,056,231	16,475,477	20,377,748
Bank Overdrafts	644,304	578,095	2,548,247	159,481	-	2,009,161
	62,318,936	55,954,094	62,097,717	33,559,787	30,469,866	37,029,946
Total Liabilities	89,778,573	76,299,560	81,322,131	47,048,990	43,641,931	49,873,417
Total Equity and Liabilities	104,354,524	87,879,297	93,765,875	56,850,285	49,746,659	58,197,960
Net Assets per Share (Rs.)	11.49	8.54	9.76	8.39	5.42	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,
3rd February 2025

4 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Nine Months ended 31st December

Statement of Changes in Equity

For the Nine Months ended 31st			Attributable to equity holders of the Company
December	Stated							Total	Non-	Total Equity
Group	Other Components of Equity		Revenue Reserves
	Capital								Controlling
	Statutory	Regulatory	Revaluation	Fair Value	General	Retained
			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	-	-		(18,638)	-	-	18,638	-	-	-
Transferred to/(from) during the period			79,139				(79,139)	-
Loss for the period	-	-		-	-	-	(521,550)	(521,550)	43,752	(477,798)
Total comprehensive income for the	-	-	-	-	-	-	(521,550)	(521,550)	43,752	(477,798)
period
Transactions with Owners of the
Company, Recognised Directly in Equity
Distributions to Owners of the Company										-
Final Dividend - 2022/2023									(32,449)	(32,449)
Balance as at 31st December 2023	626,048	244,215	79,139	1,332,254	5,165	2,700,000	4,634,709	9,621,530	1,958,207	11,579,737
Realisation on Revaluation Surplus	-	-		(9,593)	-	-	9,593	-	-	-
Transferred to/(from) during the period	-	81,079	(28,046)	-	-	-	(53,033)	-	-	-
Profit for the Period							361,737	361,737	24,761	386,498
Other Comprehensive Income								-		-
Revaluation Gain on Land and Buildings				724,044				724,044		724,044
Actuarial Loss on Employee Benefit
Obligations	-	-			-	-	(60,443)	(60,443)	3,488	(56,955)
Fair Value Change in Equity instruments
designated at fair value through other
comprehensive income	-	-		-	(1,332)	-	-	(1,332)	13	(1,319)
Related Taxes								-		-
Deferred Tax on Revaluation Gain on				(217,179)				(217,179)		(217,179)
Land and Buildings
Deferred Tax on Actuarial loss on
Employee Benefit Obligations	-	-		-	-	-	18,133	18,133	(1,047)	17,086
Deferred Tax on Equity Investments at
FVOCI-change in fair value	-	-		-	415	-	-	415	-	415
Total Other Comprehensive Income for
the Period	-	-		506,864	(917)	-	(42,310)	463,637	2,455	466,092
Total Comprehensive Income for the
Period	-	-		506,864	(917)	-	319,427	825,374	27,216	852,590
Transactions with Owners of the								-		-
Company, Recognised Directly in Equity
Final Dividend - 2022/2023	-	-		-	-	-	-	-	-	-
Total Distributions to Owners of the	-	-		-	-	-	-	-	-	-
Company
New Share issue to Minority Shareholders
of the Amalgamated Companies	512,809							512,809		512,809
Recognition of Amalgamation Reserve
through the Equity				1,116,888			(679,366)	437,522	(938,913)	(501,391)
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	12,443,744
Realisation of Revaluation Surplus	-	-		(8,194)	-	-	8,194	-
Transferred to/(from) during the period			(51,093)				51,093	-		-
Unclaimed Dividend							33,888	33,888		33,888
Profit for the period	-	-		-	-	-	2,661,696	2,661,696	113,840	2,775,537
Total comprehensive income for the	-	-	(51,093)	(8,194)	-	-	2,754,871	2,695,584	113,840	2,809,424
period
Interim Dividend -2024/25	-	-	-	-	-	-	(677,218)	(677,218)	-	(677,218)
Total Distributions to Owners of the	-	-	-	-	-	-	(677,218)	(677,218)	-	(677,218)
Company
								-		-
Balance at 31st December 2024	1,138,857	325,294	-	2,938,219	4,248	2,700,000	6,308,983	13,415,603	1,160,351	14,575,952

SINGER (SRI LANKA) PLC

Interim Financial Statements For the Nine Months ended 31st December

Statement of Changes in Equity

For the Nine Months ended 31st December		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	-	(12,291)	-	-	12,291	-
Loss for the period	-	-	-	-	(542,787)	(542,787)
Total comprehensive income for the period	-	-	-	-	(530,496)	(530,496)
Transactions with Owners of the Company, Recognised						-

Directly in Equity						-
Final Dividend - 2022/2023					-	-
Total Distributions to Owners of the Company					-	-
						-
Balance at 31st December 2023	626,048	1,186,943	3,503	2,700,000	1,588,234	6,104,728
Realisation on Revaluation Surplus	-	(4,097)	-	-	4,097	-
Profit for the Period					245,086	245,086
						-
Other Comprehensive Income						-
Revaluation gain on Land & Building		724,044				724,044
Actuarial Loss on Employee Benefit Obligations	-	-	-	-	(66,535)	(66,535)
Fair Value Change in Equity instruments designated at fair
value through other comprehensive income	-	-	(1,384)	-	-	(1,384)
						-
Related Taxes						-
Deferred Tax on Revaluation Gain on Land & Buildings		(217,179)				(217,179)
Deferred Tax on Actuarial loss on Employee Benefit
Obligations	-	-	-	-	19,961	19,961
Deferred Tax on Equity Investments at FVOCI-change in fair
value	-	-	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)	-	198,512	704,408
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
Prior year adjustment
Realisation of Revaluation Surplus	-	(8,194)	-		8,194
Profit for the period	-	-	-		2,120,081	2,120,081
Total comprehensive income for the period	-	(8,194)	-		2,128,275	2,120,081
Transactions with Owners of the Company, Recognised
Directly in Equity
Distributions to Owners of the Company
Unclaimed Dividend					33,888	33,888
Interim Dividend - 2024/2025	-		-	-	(677,218)	(677,218)
Total Distributions to Owners of the Company	-		-	-	(643,330)	(643,330)

Balance at 31st December 2024	1,138,857	2,938,219	2,534	2,700,000	3,021,684	9,801,295

6 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Nine Months ended 31st December

STATEMENT OF CASH FLOWS

For the Nine Months ended 31st December	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	4,158,382	(330,293)	3,072,582	(540,937)
Adjustments for:
Depreciation on Property, Plant and Equipment	600,156	589,634	472,553	407,747
Amortization of Intangible Assets	44,563	42,371	32,296	29,013
Amortization of Right of Use Assets	877,636	741,792	767,897	637,084
Loss/ ( Gain) on Disposal of Property, Plant and Equipment	(13,233)	488	(12,970)	870
Interest Expenses	2,414,960	3,730,864	2,407,803	3,649,830
Interest Income	(325,003)	(1,114,112)	(40,545)	(122,548)
Impairment/(Reversal) of Inventories	89,267	136,632	89,267	(47,693)
Impairment on Trade and Other Receivables	481,385	356,782	286,848	434,151
Dividend Income	-		-	(109,829)
Provision for Retiring Gratuity	162,462	152,367	139,440	117,029
Operating Profit before Working Capital Changes	8,490,574	4,306,525	7,215,171	4,454,717
Decrease in Inventories	1,607,402	3,577,556	1,669,314	4,243,658
Increase in Debtors falling Due after one Year	(5,805,618)	(1,868,339)	(147,485)	(588,018)
(Increase)/Decrease in Debtors falling Due within one year	(8,433,833)	(8,260,324)	711,565	(8,760,907)
(Increase) / Decrease in Dues from Related Parties	(69,973)	66,049	4,079	100,099
Increase/(Decrease) in Dues to Related Parties	(602,943)	1,553,457	(759,681)	2,077,915
Increase/(Decrease) in Security Deposits	144,483	(55,385)	144,483	(55,385)
Increase /(Decrease) in Trade and Other Payables	(202,994)	4,322,659	(251,191)	3,203,535
Increase in Deferred Liabilities	123,810	78,668	123,846	78,682
Cash Generated from/(used in) Operations	(4,749,091)	3,720,866	8,710,102	4,754,296
Finance Costs Paid	(1,905,431)	(3,239,149)	(1,886,542)	(3,124,328)
Retiring Gratuity Paid	(54,205)	(114,988)	(42,415)	(83,213)
Income Tax Paid	(851,965)	(450,615)	(486,613)	(85,207)
Net Cash from/(used in) Operating Activities	(7,560,692)	(83,886)	6,294,531	1,461,548
Cash Flows from /(used in) Investing Activities
Acquisition of Property, Plant and Equipment and Intangible Assets	(618,697)	(447,495)	(427,053)	(276,147)
Proceeds from Disposal of Property Plant and Equipment	17,188	879	16,919	497
(Acquisition)/Disposal of Marketable Securities	797,879	(4,595,428)	-	-
Withdrawal of Bank Deposits	-	1,413,997	-	-
Net Cash flows from loans given to related Companies				93,000
Interest Income Received	325,003	1,114,112	40,545	81,100
Dividends Received		-	-	109,829
Net Cash Flows from/(used in) Investing Activities	521,373	(2,513,935)	(369,589)	8,279
Cash Flows from/(used in) Financing Activities
Net proceeds from/(settlement to) Interest - Bearing Loans and Borrowings	6,966,840	3,160,794	(1,150,216)	1,812,357
Net settlements to Lease Creditors	(1,313,230)	(1,026,671)	(1,196,348)	(883,309)
Increase in Customer Deposit Liabilities	2,901,023	1,663,405	-	-
Dividends Paid	(351,426)	(50,648)	(351,426)	(37)
Net Cash Flows from/(used in) Financing Activities	8,203,207	3,746,880	(2,697,990)	929,011
Net Increase /(Decrease) in Cash and Cash Equivalents	1,163,888	1,149,059	3,226,953	2,398,838
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	4,806,866	3,957,551	3,324,697	2,753,682
ANALYSIS OF CASH & CASH EQUIVALENTS
Favourable balances	5,451,170	4,535,646	3,484,178	2,753,682
Cash in hand and at bank
Unfavourable balances	(644,304)	(578,095)	(159,481)	-
Bank overdrafts
	4,806,866	3,957,551	3,324,697	2,753,682

SINGER (SRI LANKA) PLC

Interim Financial Statements For the Nine Months ended 31st December

Notes to the Financial Statements

BASIS OF PREPARATION AND GROUP'S ACCOUNTING POLICIES
The interim condensed consolidated financial statements for the nine months ended 31st December 2024 have been prepared in accordance with LKAS 34 Interim Financial Reporting
The Financial Statements for the period ended 31st December 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
December		December

	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 during the nine months ended December 31, 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 Nine Months ended 31st December

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	Nine Months ended	Nine Months ended
		31st December 2024		31st December 2023	31st December 2024	31st December 2023
		Rs'000		Rs'000	Rs'000	Rs'000
Consumer Electronics	3,483,890			2,943,102	8,450,671	4,748,971
Financial Services	1,459,049			1,278,133	4,279,549	3,333,624
Furniture	1,333,055			1,220,579	3,263,765	2,965,815
Home Appliances	8,316,615			7,185,445	22,045,651	16,065,980
IT products	4,725,723			8,618,735	13,059,002	14,817,711
Sewing Machines	1,018,959			725,135	2,071,054	1,624,377
Other	2,169,294			3,161,841	4,500,786	5,381,057
		22,506,585			25,132,970	57,670,478	48,937,535
2.1 Segmental Analysis of Company Profits	Before Tax is as follows:

		Three Months ended	Three Months ended	Nine Months ended	Nine Months ended
		31st December 2024		31st December 2023	31st December 2024	31st December 2023
		Rs'000		Rs'000	Rs'000	Rs'000
Consumer Electronics	409,863			316,862	886,789	322,664
Financial Services	427,083			337,601	1,105,097	714,423
Furniture	85,512			121,585	147,782	111,858
Home Appliances	839,090			914,395	2,025,836	875,065
IT products	277,829			574,407	609,789	575,748
Sewing Machines	116,638			113,325	215,417	116,058
Other	96,691			124,619	166,325	127,614
Intercompany Dividend				109,829		109,829
Impairment Loss on Trade and Other
Receivables	(76,102)			(302,035)	(286,848)	(434,151)
Operating Profit	2,176,604			2,310,588	4,870,187	2,519,108
Net Finance Cost	(533,695)			(826,760)	(1,735,605)	(3,006,045)
VAT on Financial Services	(20,000)			(25,000)	(62,000)	(54,000)
Profit /(Loss) Before Tax	1,622,909			1,458,828	3,072,582	(540,937)

SINGER (SRI LANKA) PLC

Interim Financial Statements For the Nine Months ended 31st December

Notes to the Financial Statements

2.2 Segmental Analysis of Group Net Turnover is as follows:

	Three Months ended	Three Months ended	Nine Months ended	Nine Months ended
	31st December 2024	31st December 2023	31st December 2024	31st December 2023
	Rs'000	Rs'000	Rs'000	Rs'000
Consumer Electronics	3,483,890		2,943,102	8,450,671	4,748,971
Financial Services	3,832,014		2,896,225	10,705,881	8,182,574
Furniture	1,333,055		1,220,579	3,263,765	2,965,815
Home Appliances	8,318,334		7,192,123	22,050,766	16,081,854
IT products	4,725,722		8,618,735	13,059,002	14,817,711
Sewing Machines	1,018,959		725,330	2,071,054	1,624,776
Other	2,169,294		3,170,865	4,500,786	5,404,501
	24,881,268		26,766,959	64,101,925	53,826,202
2.3 Segmental Analysis of Group Profits Before Tax is as follows:

	Three Months ended	Three Months ended	Nine Months ended	Nine Months ended
	31st December 2024		31st December 2023	31st December 2024	31st December 2023
	Rs'000		Rs'000	Rs'000	Rs'000
Consumer Electronics	409,863		316,862	886,789	322,664
Financial Services	1,038,933		177,038	2,336,238	281,397
Furniture	85,512		121,585	147,782	111,858
Home Appliances	875,670		995,957	2,085,657	917,523
IT Products	277,829		574,407	609,789	575,748
Sewing Machines	116,638		96,350	215,417	(12,578)
Other	98,209		131,823	170,857	145,165
Impairment (Loss)/Reversal on Trade and
Other Receivables	(178,167)		(262,244)	(481,385)	(356,782)
Operating Profit	2,724,487		2,151,778	5,971,144	1,984,995
Net Finance Cost	(451,241)		(532,931)	(1,398,710)	(2,042,459)
VAT on Financial Services	(155,148)		(91,997)	(414,053)	(272,829)
Profit /(Loss) Before Tax	2,118,098		1,526,850	4,158,381	(330,293)
3 STATED CAPITAL
3.1

					31st December 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

4 CONTINGENCIES

Commissioner General of Inland Revenue has issued assessment notices on Singer (Sri Lanka) PLC pertaining to an additional VAT Liability/
Payment on account of Deemed VAT for seven quarters during the period 1st January 2014 to 30th September 2015. The assessments were for a Deemed VAT payment of Rs. 1,076 million and penalty of Rs. 423 million, totaling to Rs. 1,499 million. The assessments were appealed against and in due course the Commissioner General of Inland Revenue issued the determination on the appeal. In terms of the same, Rs. 791 million of Deemed VAT liability and penalty of Rs. 395 million totaling to Rs.1,186 million was held to be a Deemed VAT liability for the seven quarters for the period from 1st January 2014 to 30th September 2015. The Company after carefully reviewing the situation and based on the advice of tax consultants, was of the opinion that there is no basis for the Company to be made liable for Deemed VAT. Accordingly the Company decided to appeal to the Tax Appeals Commission against the determination. Further, the Company had previously provided bank guarantees amounting to Rs. 297 million to the Commissioner General of Inland Revenue - Tax Appeals Commission.

10 SINGER (SRI LANKA) PLC

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