The Lanka HospitalsC O R P O R A T I O N PLC (PQ 180)
PROVISIONAL CONSOLIDATED FINANCIAL
STATEMENTS
FOR THE QUARTER ENDED
30th September 2020
Principal Place of Business & Registered Office
Mr. Ashish BHATIA
Ms. Richa Singh DEBGUPTA
Dr.Prasad ARIYAWANSA ( Resigned on 17th July 2020 )
Ms.Roshini CABRAAL
Dr.Ravindra RUBERU
Ms.Lakshmi SANGAKKARA
Mr. Mayura FERNANDO
Mr. Kushan D ALWIS PC
Dr. Kanishka Karunaratne
Tel: +94 11 5430000 Fax: +94 11 4511199
E-mail: [email protected]
Dr.Bandula WIJESIRIWARDHANA - Chairman
Mr. Anurag KALRA - ( Alternate Director to Mr. Ashish BHATIA )
Mr. Nadun FERNANDO
Ms.Dayakanthi ABEYRATHNE
Mr. Rajiv PURI (Alternate Director to Ms. Richa Singh DEBGUPTA )
Web: www.lankahospitals.com
No. 578, Elvitigala Mawatha, Narahenpita, Colombo 05
THE LANKA HOSPITALS CORPORATION PLC
Provisional Consolidated Financial Statements
For the Quarter ended
30th September 2020
Board of Directors
THE LANKA HOSPITALS CORPORATION PLCProvisional Consolidated Financial Statements for the Quarter ended 30th September 2020
Statement of Financial Position
As at, 30th Sep 2020 31st Dec 2019 30th Sep 2020 31st Dec 2019Audited Audited
Rs. Rs. Rs. Rs.
ASSETS
Non Current Assets
Property, Plant & Equipment 4,529,515,023 4,374,999,568 4,136,914,382 3,975,951,582
Right of Use Assets 546,446,988 638,680,846 455,540,683 529,133,161
Intangible Assets 60,872,336 75,837,895 44,593,412 55,021,077
Investment Property - - 135,000,000 135,000,000
Investment in Subsidiary - - 414,000,020 414,000,020
Total Non Current Assets 5,136,834,347 5,089,518,308 5,186,048,497 5,109,105,840
Current Assets
Inventories 539,566,480 412,871,966 422,595,446 321,847,911
Trade & Other Receivables 658,565,701 914,910,555 576,392,475 809,976,006
Amounts due from Related Parties 1,703,150 5,989,336 152,627,920 119,664,683
Economic Service Charge Recoverable 7,933,763 - 7,933,763 -
Other Financial Assets 2,745,525,000 2,482,398,553 2,420,525,000 2,222,398,553
Cash and Cash Equivalents 427,309,063 521,701,786 362,928,550 318,424,161
Total Current Assets 4,380,603,157 4,337,872,196 3,943,003,154 3,792,311,314 Total Assets 9,517,437,503 9,427,390,504 9,129,051,651 8,901,417,154
EQUITY AND LIABILITIES
Equity
Stated Capital 2,671,543,090 2,671,543,090 2,671,543,090 2,671,543,090
Revaluation Reserve 982,213,369 982,213,369 918,291,662 918,291,662
Retained Earnings 3,168,591,601 2,975,801,877 2,485,358,294 2,464,218,824
Total Equity 6,822,348,060 6,629,558,336 6,075,193,046 6,054,053,576
Non Current Liabilities
Employee Benefit Obligations 272,511,167 245,319,808 242,881,935 218,983,833
Deferred Tax Liabilities 1,110,254,228 1,101,754,228 1,056,568,491 1,048,068,491
Lease Liability 204,230,588 300,363,987 128,825,007 212,319,907
Total Non Current Liabilities 1,586,995,984 1,647,438,023 1,428,275,433 1,479,372,231
Current Liabilities
Amounts due to Related Parties 4,769,075 6,360,674 4,769,075 4,769,075
Trade & Other Payables 760,829,169 748,060,109 1,348,299,011 1,010,989,544
Lease Liability 70,251,963 76,947,758 52,955,350 57,202,253
Income Tax Payable 35,463,102 56,909,372 34,610,601 54,344,839
Bank Overdraft 236,780,149 262,116,232 184,949,135 240,685,635
Total Current Liabilities 1,108,093,459 1,150,394,145 1,625,583,172 1,367,991,347
Total Liabilities 2,695,089,443 2,797,832,168 3,053,858,606 2,847,363,578 Total Equity & Liabilities 9,517,437,503 9,427,390,504 9,129,051,651 8,901,417,154
The figures as at 30th Sep 2020 are provisional and subject to audit.
I certify that the consolidated financial statements comply with the requirements of the Companies Act No. 07 of 2007.
Group Chief Financial Officer
The Board of the Directors is responsible for the preparation and presentation of these consolidated financial statements.
Approved and signed for and on behalf of the Board.
Chairman
Date 12th November 2020
Colombo
(Amounts in brackets indicate deductions)
Group Company
Director
THE LANKA HOSPITALS CORPORATION PLCProvisional Consolidated Financial Statements for the Quarter ended 30th September 2020
Statement of Comprehensive Income
For the 09 months ended, 30th Sep 2020 30th Sep 2019 30th Sep 2020 30th Sep 2019
Rs. Rs. Rs. Rs.
Revenue from contract with customers 4,938,975,421 5,539,569,941 3,934,877,430 4,513,486,432
Cost of services (2,875,493,033) (3,065,259,847) (2,462,805,333) (2,637,368,950)
Gross profit 2,063,482,389 2,474,310,093 1,472,072,097 1,876,117,481
Other operating income 47,929,841 53,061,397 53,320,391 182,099,371
Administrative expenses (1,517,305,560) (1,521,668,525) (1,140,462,283) (1,165,499,392)
Other operating expenses (511,964,341) (530,473,721) (465,682,130) (461,177,721)
Profit from operations 82,142,330 475,229,244 (80,751,924) 431,539,739
Finance income 190,983,587 167,550,402 168,290,901 123,767,355
Finance Cost (28,204,180) (27,074,211) (19,688,407) (21,005,675)
Profit before tax 244,921,737 615,705,435 67,850,570 534,301,420
Income tax expense (52,132,013) (135,209,382) (46,711,100) (122,938,722)
Profit for the period 192,789,724 480,496,053 21,139,470 411,362,698
Other comprehensive Income - - - -
Other comprehensive income net of tax - - - -
Total comprehensive income for the period 192,789,724 480,496,053 21,139,470 411,362,698
Basic earnings per share 0.86 2.15 0.09 1.84
Dividend per share - 1.00 - 1.00
(Amounts in brackets indicate deductions)
Group Company
THE LANKA HOSPITALS CORPORATION PLCProvisional Consolidated Financial Statements for the Quarter ended 30th September 2020
Statement of Comprehensive Income
For the 03 months ended, 30th Sep 2020 30th Sep 2019 30th Sep 2020 30th Sep 2019
Rs. Rs. Rs. Rs.
Revenue from contract with customers 1,997,547,671 1,949,035,954 1,555,961,084 1,586,752,505
Cost of services (1,165,341,853) (1,074,437,555) (985,410,811) (926,183,069)
Gross profit 832,205,818 874,598,399 570,550,273 660,569,436
Other operating income 16,272,616 18,597,793 18,069,466 144,368,767
Administrative expenses (506,756,806) (537,311,815) (371,819,931) (415,695,728)
Other operating expenses (184,321,191) (181,880,711) (168,145,977) (159,016,140)
Profit from operations 157,400,438 174,003,667 48,653,832 230,226,335
Finance income 39,308,683 115,039,258 33,525,049 98,351,380
Finance Cost (9,198,089) (8,964,015) (6,301,189) (6,737,468)
Profit before tax 187,511,033 280,078,910 75,877,692 321,840,247
Income tax expense (18,667,149) (53,689,754) (17,268,466) (49,015,802)
Profit for the period 168,843,883 226,389,156 58,609,226 272,824,446
Other comprehensive Income - - - -
Other comprehensive income net of tax - - - -
Total comprehensive income for the period 168,843,883 226,389,156 58,609,226 272,824,446
Basic earnings per share 0.75 1.01 0.26 1.22
Dividend per share - - - -
(Amounts in brackets indicate deductions)
Group Company
THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 30th September 2020
Company Statement of Changes in Equity
Stated Revaluation Retained Total
capital reserve earning / (loss)
Balance as at 1st January 2019 2,671,543,090 962,019,491 2,404,221,191 6,037,783,772
Profit for the period (January 2019 - September 2019) - - 411,362,698 411,362,698
Other comprehensive income for the year - - - -
Dividend Paid - - (223,732,169) (223,732,169)
Balance as at 30th September 2019 2,671,543,090 962,019,491 2,591,851,719 6,225,414,300
Balance as at 1st January 2020 2,671,543,090 918,291,662 2,464,218,824 6,054,053,576
Profit for the period (January 2020 - September 2020) - - 21,139,470 21,139,470
Other comprehensive income for the year - - - -
Balance as at 30th September 2020 2,671,543,090 918,291,662 2,485,358,294 6,075,193,046
Group Statement of Changes in Equity
Stated Revaluation Retained Total
capital reserve earning / (loss)
Balance as at 1st January 2019 2,671,543,090 1,028,709,128 2,754,511,426 6,454,763,644
Profit for the period (January 2019 - September 2019) - - 480,496,053 480,496,053
Other comprehensive income for the year - - - -
Dividend Paid - - (223,732,169) (223,732,169)
Balance as at 30th September 2019 2,671,543,090 1,028,709,128 3,011,275,310 6,711,527,529
Balance as at 1 January 2020 2,671,543,090 982,213,369 2,975,801,877 6,629,558,336
Profit for the period (January 2020 - September 2020) - - 192,789,724 192,789,724
Other comprehensive income for the year - - - -
Balance as at 30th September 2020 2,671,543,090 982,213,369 3,168,591,601 6,822,348,060
(Amounts in brackets indicate deductions)
THE LANKA HOSPITALS CORPORATION PLCProvisional Consolidated Financial Statements for the Quarter ended 30th September 2020
Cash Flow Statement
Cash flow from operating activities 30th Sep 2020 30th Sep 2019 30th Sep 2020 30th Sep 2019
Rs. Rs. Rs. Rs.
Profit before tax 244,921,737 615,705,435 67,850,570 534,301,420
Adjustments for :
Interest income (149,306,143) (174,273,112) (126,719,007) (130,458,819)
Depreciation on property, plant and equipment 322,632,542 307,713,022 284,163,408 275,975,808
Amortisation of intangible assets 17,105,137 17,339,493 10,887,663 11,063,144
Provision for defined benefit obligation 40,215,132 26,231,939 36,000,000 22,400,000
Provision for expired inventories - 328,713 - 328,713
Dividend Income - - - (124,200,006)
Provision for impairment of trade receivable 17,582,522 10,120,325 17,582,522 10,120,325
Amortisation of lease assets 55,135,713 52,762,423 33,752,294 38,110,977
Interest cost - Lease assets 28,204,180 27,074,211 19,688,407 21,005,675
Gain on disposal of property, plant & equipment & ROU 578,660 - 578,660 -
Operating profit before working capital changes 577,069,480 883,002,449 343,784,516 658,647,238
(Increase) / decrease in inventories (126,694,514) (29,905,864) (100,747,534) (36,576,018)
(Increase) / decrease in trade and other receivables 201,939,057 (54,612,488) 204,336,711 (44,308,508)
(Increase) / decrease in amounts due from related company 4,286,186 1,919,050 (32,963,238) (33,587,510)
Increase / (decrease) in amounts due to related company (1,591,599) (1,591,698) - -
Increase / (decrease) in trade and other payables 12,769,061 (102,115,703) 337,309,467 (172,132,569)
Cash generated from operating activities 667,777,671 696,695,747 751,719,922 372,042,634
Income Tax paid (65,078,284) (153,031,541) (57,945,339) (148,594,179)
Interest cost paid (30,224,955) (27,074,211) (19,688,407) (21,005,675)
Defined benefit obligation paid (13,023,771) (13,754,623) (12,101,897) (11,684,206)
Net cash flow from operating activities 559,450,661 502,835,373 661,984,279 190,758,575
Cash flow from investing activities
Purchase of property, plant and equipment (484,443,884) (207,078,925) (452,422,092) (175,695,409)
Purchase of Intangible assets (2,139,581) (1,811,229) (460,000) (977,343)
Proceeds from disposal of property, plant & equipment 6,948,583 - 6,948,583 -
Lease paid (64,372,872) (57,813,171) (48,132,976) (47,334,856)
Interest income Received 178,626,899 147,469,169 130,449,542 137,278,493
Dividend income Received - - - 124,200,006
(Investment)/withdrawal in other financial assets (263,126,446) (64,722,459) (198,126,446) 50,277,541
Net cash flow from / (used in) investing activities (628,507,301) (183,956,614) (561,743,389) 87,748,433
Cash flow from financing activities
Dividend paid - (223,732,169) - (223,732,169)
Net cash flow from / (used in) financing activities - (223,732,169) - (223,732,169)
Net increase in cash and cash equivalents (69,056,641) 95,146,590 100,240,890 54,774,839
Cash and cash equivalents at the beginning of the year 259,585,553 43,687,772 77,738,525 47,976,166
Cash and cash equivalents at the end of the year (Note A) 190,528,913 138,834,362 177,979,416 102,751,005
Note A
Cash & Cash Equivalents at the end of the Period
Cash & Cash Equivalents 427,309,063 494,871,138 362,928,550 458,787,781
Bank Overdraft (236,780,149) (356,036,776) (184,949,135) (356,036,776)
190,528,913 138,834,362 177,979,416 102,751,005
(Amounts in brackets indicate deductions)
Group Company
9 months ended 9 months ended
THE LANKA HOSPITALS CORPORATION PLC
Provisional Consolidated Financial Statements for the Quarter ended 30th September 2020
1). Basis of preparation of the Interim Financial Statements
Figures for the nine months are provisional and subject to audit.
2). Comparative figures
3). Contingencies , Capital and Other commitments
4). Public Shareholding
Public shareholding percentage as at 30th September 2020 - 20%
Number of public shares as at 30th September 2020 - 44,749,303Number of public shareholders as at 30th September 2020 - 7,611Adjusted Floated Market Capitalization Rs. 1,968,969,332
5). Event After the Reporting Period
6). Revaluation of Assets
7). Investment in Subsidiary
8). Investment Property
The Float adjusted market capitalization of the Company falls under Option 5 of Rule 7.13.1 (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.
These interim financial statements have been prepared in accordance with Sri Lanka Accounting Standard LKAS 34 - Interim
Financial Reporting. These interim financial statements should be read in conjunction with the annual audited financial
statements for the year ended 31 December 2019.
Further, provisions of the Companies Act No 7 of 2007 have been considered in preparing the interim financial statements of
the Company.
Latest Financial statements have been audited for the period ended 31st December 2019.
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 buildings of the Company / Group were revalued as at 31 December 2017 by Messrs A.A.M Fathihu (FIV) chartered valuer.
Such assets were valued on current replacement cost basis, the surplus arising from the revaluation was transferred to the
revaluation reserve and the value of the buildings of the company / group has been reflected in the financial statements at
the revalued amount.
Investment made in subsidiary represents the acquisition of 41,400,002 shares at a value of Rs. 10 per share of the Lanka
Hospitals Diagnostics (Pvt) Ltd, a fully owned subsidiary of the company.
Investment property consists of value attributable to 7th floor of the building constructed on leasehold land, which is given on
rental to Lanka Hospitals Diagnostics (Pvt) Ltd.
There has been no significant change in the nature of the contingencies, capital and other commitments, which were
disclosed in the annual report for the year ended 31st December 2019.
As at 31st December 2019,the fair value of the investment property is based on valuation performed by Mr. A.A.M. Fathihu
(FIV), Chartered Valuer, an accredited independent valuer who has appropriate experience in valuation of properties. The
valuation is based on current replacement cost method.
Freehold land of the Company was revalued by Mr A.A.M. Fathihu (FIV), chartered Valuer in 31st December 2018 on current
market value basis.
There have been no events subsequent to the reporting date, which require disclosure in the interim condensed financial
statements.
THE LANKA HOSPITALS CORPORATION PLC
Provisional Consolidated Financial Statements for the Quarter ended 30th September 2020
Shareholder and Investor Information
Top 20 Shareholding as at 30th September 2020
Shareholder No of shares Holding
1 Fortis Healthcare International Pte Limited 64,120,915 28.66%
2 Sri Lanka Insurance Corporation Ltd - Life Fund 58,781,308 26.27%
3 Sri Lanka Insurance Corporation Ltd - General Fund 56,080,643 25.07%
4 Property Development PLC A/C 01 21,329,000 9.53%
5 Peoples Bank 7,316,042 3.27%
6 Bank of Ceylon A/c Ceybank Unit Trust 3,014,475 1.35%
7 Dr. Mohommed Rafeed Mubarak 1,421,606 0.64%
8 Bank of Ceylon A/c Ceybank Century Growth Fund 852,516 0.38%
9 Bank of Ceylon NO. 1 Account 309,949 0.14%
10 Mr.A.H. Munasinghe 293,300 0.13%
11 Deutsche Bank AG-As Trustee for Guardian Acuity Equity Fund 249,337 0.11%
12 Sandwave Limited 227,977 0.10%
13 Mrs. C.A.D.S. Woodward 220,300 0.10%
14 Hatton National Bank PLC - Arpico Ataraxia Equity Income Fund 200,000 0.09%
15 Seylan Bank PLC / Senthilverl Holdings (Pvt) Ltd 198,987 0.09%
16 Dr.N.I. Gamaathige 185,627 0.08%
17 Mr.S.. Subramaniam 156,104 0.07%
18 Mr.M. Balasubramaniam 136,000 0.06%
19 Hatton National Bank PLC - K.R.E.M. Dharshan Maduranga Bandara Jayasundara 130,000 0.06%
20 Mrs. M.A.C. Felsinger 117,700 0.05%
215,341,786 96.25%
Individual / Institution
As % As %
Individual 7,483 98.28 10,041,286 4.49
Institution 131 1.72 213,690,883 95.51
7,614 100.00 223,732,169 100.00
Resident / Non-Resident
As % No of Shares As %
Resident 7,594 99.74 159,091,204 71.11
Non-Resident 20 0.26 64,640,965 28.89
7,614 100.00 223,732,169 100.00
Directors'/Senior Management Shareholdings as at 30th September 2020
Board of Directors Position No of shares Holding %
Dr.Bandula WIJESIRIWARDHANA Chairman - -
Mr.Ashish BHATIA Director - -
Ms. Richa Singh DEBGUPTA Director - -
Ms.Roshini CABRAAL Director - -
Dr.Ravindra RUBERU Director - -
Ms.Lakshmi SANGAKKARA Director - -
Mr.Mayura FERNANDO Director - -
Mr.Kushan D' ALWIS PC Director - -
Mr.Nandun FERNANDO Director - -
Ms.Dayakanthi ABEYRATHNE Director - -
Dr.Kanishka Karunaratne Director - -
Mr Anurag KALRA (Alternate Director to Mr.Ashish BHATIA) Alternate Director - -
Mr. Rajiv PURI (Alternate Director to Ms. Richa Singh
DEBGUPTA) Alternate Director- -
Senior Management
Group Chief Executive
OfficerMr.Deepthi Lokuarachchi - -
No of Shareholders No of Shares
No of Shareholders
THE LANKA HOSPITALS CORPORATION PLCProvisional Consolidated Financial Statements for the Quarter ended 30th September 2020
Shareholder and Investor Information (cont.)
Price fluctuation (Market price of Ordinary share)
Rs. Rs.
Highest price
Lowest price
Closing price
Summary of Share Ranges
Share RangeNo of
shareholdersNo of shares Holding %
1 1 -1,000 6,218 2,133,732 0.95
2 1,001 - 10,000 1,274 3,583,030 1.60
3 10,001 - 100,000 100 2,516,646 1.12
4 100,001 - 1,000,000 15 3,434,772 1.54
5 1,000,001 & above 7 212,063,989 94.78
7,614 223,732,169 100.00
44.00 40.90
30th September 2020 30th September 2019
52.00
40.00
Current Interim Period Comparative Period
3 months ended 3 months ended
44.90
31.70
THE LANKA HOSPITALS CORPORATION PLCProvisional Consolidated Financial Statements for the Quarter ended 30th September 2020
Financial Indicators
Group Company Group Company1 Net asset per share Rs. Rs. Rs. Rs.
Total Assets - Short Term & Long Term Liabilities 30.49 27.15 29.63 27.06
Total No of Shares 223,732,169 223,732,169
2 Gearing Ratio
Total Debt N/A N/A N/A N/A
Total Equity -
6,054,053,576 3 Quick Asset Ratio (Times)
Current Assets-Inventory 3.47 2.17 3.41 2.54
Current Liabilities 3,520,407,708
1,625,583,172 4 Interest Cover
Profit before interest & tax (PBIT) N/A N/A N/A N/A
Interest charges 108,663,485
-
Current Period
3 Months ended 30th September 2020
Comparative Period
Immediately Preceding Financial Year
31st December 2019
Current Interim Period
Corporate Information
Name of the Company
The Lanka Hospitals Corporation PLC
Company Registration No.
PQ 180
Registered Office
No.578, Elvitigala Mawatha,
Narahenpita, Colombo 05, Sri Lanka.
Tel: +94 11 5430000
Fax: +94 11 4511199
E-mail: [email protected]
Secretaries & Registrars to Shares
Accounting Systems Secretarial
Services (Private) Limited,
Level 03, No:11, Castle Lane, Colombo 4
Tel: +94 11 544 4400
Auditors
National Audit Office
306/72, Polduwa Road,
Battaramulla,
Sri Lanka.