Financial statements xls · 1.57 Diluted (0.04) (0.30) Ambeon Holdings PLC Interim Consolidated...

Interim Financial StatementsFor the period Ended 30 June 2020

Domicile & Legal Form

Principal Activity & Nature Investment Holding

of the Company

Company Reg. No. PQ 26

Board of Directors Mr. Sanjeev Gardiner - Chairman

Mr. Ajith Devasurendra - Deputy Chairman

Mr. N. M. Prakash - Group Managing Director/CEO

Mr. A. G. Weerasinghe - Non-Executive Director

Mr. R. P. Sugathadasa - Non-Executive Director

Mr. E. M. M. Boyagoda - Non-Executive Director

Mr. Ranil Pathirana - Non-Executive Director

Mr. Revantha Devasurendra - Alternate Director for Mr. Ajith Devasurendra

Secretaries P W CORPORATE SECRETARIAL (PRIVATE) LIMITED

3/17, Kynsey Road, Colombo 08.

Registrars S S P CORPORATE SERVICES (PRIVATE) LIMITED

101, Inner Flower Road, Colombo 3

Auditors ERNST & YOUNG

Chartered Accountants, No. 201, De Saram Place, Colombo 10.

Bankers Pan Asia Banking Corporation PLC

Nations Trust Bank PLC

Seylan Bank PLC

National Development Bank PLC

Peoples Bank

Standard Chartered Bank

Contact Details Registered Office

No. 10, 5th Floor, Gothami Road, Colombo 08.

Telephone - '+94 11 5700700

Fax - '+94 11 2680225

Email :[email protected]

Website :ambeonholdings.com

Corporate Information

Ambeon Holdings PLC is a Public Limited Liability Company incorporated and domiciled in Sri

lanka. The registered office of the Company is located at No. 10, 5th Floor, Gothami Road,

Colombo 08.

1

mailto:[email protected]://www.ambeonholdings.com/

Ambeon Holdings PLC

Interim Statement of Profit or Loss - Company

For the period ended 30 June 2020

Rs.000' Rs.000' Note 2020 2019

2020 (Un-Audited) Un-Audited Un-Audited

207,460 Revenue 121,635 42,954

- Cost of Sales - -

207,460 Gross Profit 121,635 42,954

27,190 Other Income - -

- Selling & Distribution Expenses - -

(259,096) Administrative Expenses (21,824) (34,503)

1,025,568 Fair value gain on investment subsidiary fair valuation

891 Fair Value Gain/(Loss) on Current Investments (8,645) (27,937)

(382,646) Finance Cost (106,978) (85,964)

619,367 Profit/(Loss) for the period before tax (15,812) (105,450)

(58,856) Income Tax Expense - -

560,511 Total Comprehensive Income for the period, net of tax (15,812) (105,450)

Earnings/(Loss) per share

1.57 Basic (0.04) (0.30)

1.57 Diluted (0.04) (0.30)

Ambeon Holdings PLC

Interim Consolidated Statement of Comprehensive Income - Company


Rs.000' 2020 2019

2020 (Un-Audited)

Unaudited Unaudited

560,511 Profit/(Loss) for the year (15,812) (105,450)

97 Actuarial Gain/(Loss) on Defined Benefit Plans - -

(27) Income tax effect on other comprehensive income - -

(8,786) Gain/(Loss) From Change in Fair Value of Financial Assets (52,718) (39,538)

(8,716) Other Comprehensive Income for the period, net of tax (52,718) (39,538)

551,794 Total Comprehensive Income for the period, net of tax (68,530) (144,988)

The notes on pages 10 to 14 are integral part of the financial statements.

Figures in brackets indicate deductions.

Three Months Ended 30 June

Rs.000' Three Months Ended 30 June

2

Ambeon Holdings PLCInterim Statement of Financial Position - CompanyAs at 30 June 2020

Rs.000' Rs.000' 30 June 2020 30 June 2019

2020 (Un-

Audited) (Un-Audited) (Un-Audited)

ASSETS

Non-Current Assets

10,623 Property, Plant & Equipment 9,182 15,046

9,370 Intangible Assets 9,093 10,203

12,663,843 Investment in Subsidiaries 12,663,843 11,486,809

524,238 Loans and Other Receivable 535,954 46,688 13,208,074 13,218,073 11,558,746

Current Assets

685,570 Trade & Other Receivables 744,561 822,781

25,245 Income Tax Receivable 25,245 24,912

662,418 Other Financial Investments 580,454 658,485

112,006 Cash & Short Term Deposits 6,491 456,124 1,485,240 1,356,751 1,962,302

14,693,313 Total Assets 14,574,823 13,521,048

EQUITY

Equity attributable to owners of the parent

5,331,775 Stated Capital 5,331,775 5,331,775

3,100 Other Capital Reserves 3,100 3,100

(265,455) Other Component of Equity (318,173) (296,206)

5,643,904 Retained Earnings /(Losses) 5,628,092 4,977,873 10,713,324 Total Equity 10,644,794 10,016,542

LIABILITIES

Non-Current Liabilities

945 Other Financial Liabilities 945 921

5,740 Retirement Benefit Obligations 6,340 4,242

388,790 Deferred Tax Liability 388,790 329,906

2,163,796 Interest Bearing Loans & Borrowings 2,142,956 985,176 2,559,271 Total Non-Current Liabilities 2,539,031 1,320,245

Current Liabilities

23,304 Trade & Other Payables 47,984 31,420

1,397,414 Interest Bearing Loans & Borrowings 1,343,014 2,152,841 1,420,718 Total Current Liabilities 1,390,998 2,184,261

3,979,988 Total Liabilities 3,930,029 3,504,506

14,693,313 Total Equity and Liabilities 14,574,823 13,521,048

30.02 Net Asset Value Per Share 29.83 28.06

Isuru Fernando

Finance Manager

A G Weerasinghe Ruwan Sugathadasa

Director Director

09 September 2020

Colombo



Note

The Board of Directors are responsible for these Financial Statements. Signed for and on behalf of the Board

by;

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

3

Ambeon Holdings PLC

Interim Statement of Changes in Equity - Company


Rs.000 Note Stated capitalRetained

earnings

FV Through OCI

Reserve

Other capital

reserves

Other

reservesTotal equity

Balance as at 31 March 2019 Restated (Un Audited) 5,331,775 5,083,323 (256,889) 3,100 220 10,161,529

Net profit/(Loss) for the Period - (105,450) - - - (105,450)

Other Comprehensive Income - - (39,538) - - (39,538)

Total comprehensive income/(loss) for the period - (105,450) (39,538) - - (144,988)

Balance as at 30 June 2019 Restated (Un-Audited) 5,331,775 4,977,873 (296,426) 3,100 220 10,016,542

Balance as at 31 March 2020 (Un-Audited) 5,331,775 5,643,904 (265,675) 3,100 220 10,713,324

Net profit/(Loss) for the Period - (15,812) - - - (15,812)

Other comprehensive income - - (52,718) - - (52,718)

Total comprehensive income/(loss) for the period - (15,812) (52,718) - - (68,530)

Balance as at 30 June 2020 (Un-Audited) 5,331,775 5,628,092 (318,393) 3,100 220 10,644,794



4

Ambeon Holdings PLC

Interim Cash Flow Statement - CompanyFor the period ended 30 June 2020

31 March

2020Rs.000' 30 June 2020 30 June 2019

(Un-Audited) (Un-Audited) (Un-Audited)

Cash flow from operating activities619,367 Profit/(loss) before tax (15,812) (105,450)

Adjustments:7,525 Depreciation of Property Plant and Equipment 1,441 1,842

(891) Provision for(Gain)/ fall in Value of current assets 8,645 27,937

(1,025,568) Fair value gain on investment subsidiary fair valuation - -

1,111 Amortisation of Intangible Assets 278 278

2,195 Provision for Defined Benefit Plans 600 600

(6,959) (Profit)/Loss from Disposal of Current Investment (1,070) -

24 Interest on other Financial Liabilities - -

382,622 Finance Cost 106,978 85,964

85,000 Impairment of Receivable - -

64,426 101,060 11,171

Working capital adjustments

(145,933) (Increase)/decrease in trade & other receivables (35,958) (79,443)

(11,916) Increase/(decrease) in trade & other payables 24,680 (3,801)

(93,423) Cash Generated /(used in) Operations 89,782 (72,073)

(382,622) Interest Paid (106,978) (85,964)

(333) Income tax paid - -

(724) Defined Benefit Plan Costs paid net of transfers - (724)

(477,100) Total net cash (used in)/from operating activities (17,196) (158,760)

0 Cash flow from investing activities

(1,290) Acquisition of Property, Plant & Equipment - (30)

123,591 Proceeds from Sale of Other Financial Assets 21,672 -

(151,466) Investment in Subsidiaries - -

(64,728) Investment in Current Investments - -

(525,360) Net proceeds from intercompany Loans (34,751) (170,253)

(619,253) Total net cash (used in)/from investing activities (13,079) (170,284)

Cash Flow from Financing Activities

1,045,046 Net Proceeds from Interest Bearing Borrowings (52,297) 629,454

1,045,046 Net Cash Flows (Used in)/from Financing Activities (52,297) 629,454

(51,308) Net (decrease)/increase in cash and cash equivalents (82,572) 300,409

(348,566) Cash and cash equivalents as at 1 April (399,856) (348,566)

(399,874) Cash and cash equivalents as at 30 June (482,428) (48,156)

Cash and cash equivalents as at 30 June

112,006 Favorable Cash and bank balances 6,491 456,124

(511,880) Unfavorable cash and Bank balances (488,919) (504,280) (399,874) (482,428) (48,156)



5

Ambeon Holdings PLC

Interim Consolidated Statement of Profit or Loss - Group


Rs.000' 2020 2019


Continuing Operations

19,716,071 Revenue 3,266,371 4,332,4090

(15,566,550) Cost of Sales (2,647,103) (3,533,473)

4,149,521 Gross Profit 619,268 798,936

156,442 Other Income 24,068 36,8580

(869,550) Selling & Distribution Expenses (132,740) (178,167) 0

(2,841,754) Administrative Expenses (444,523) (598,700)

13,420 Change in Fair Value of Financial Assets measured at fair value

though Profit or loss(8,643) (27,937)

608,079 Operating Profit/(Loss) 57,430 30,990

(572,086) Net Finance Cost (148,526) (175,871) 0

787,720 Change in fair value of Investment Property - -

(3,070) Share of profit From Associate - -

820,642 (91,096) (144,882)

(111,805) Income Tax Expense (40,046) (23,425)

708,837 Profit/(Loss) for the period from continuing operations (131,142) (168,307)

Discontinued operations

(190,978) - (375)


245,268 Owners of the parent (131,588) (151,589)

272,591 Non-controlling interests 446 (17,093) 517,859 (131,142) (168,682)

Earnings/(Loss) per share

0.69 Basic (0.37) (0.42)

0.69 Diluted (0.37) (0.42)

Ambeon Holdings PLC

Interim Consolidated Statement of Comprehensive Income - Group


Rs.000' 2020 2019



156,076 Currency translation of Foreign operations (27,976) 4,193

(21,833) Tax on Currency translation of Foreign operation - -

189,717 Revaluation gain/Loss of land and building - -

(64,132) Tax on revaluation gain - -

(26,134) Actuarial Gain/(Loss) on Defined Benefit Plans - -

10,381 Tax on Acturial Gain/(Loss ) on Defined Benefit Plans - -

(8,786) Gain/(Loss) From Change in Fair Value of Financial Assets (52,718) (39,538) (35,827) Effect of CF Hedge Accounting 19,728 -

199,462 Other Comprehensive Income (60,966) (35,345)

717,320 Total comprehensive income/(loss) for the period (192,108) (204,027)

Attributable to;

426,528 Owners of the parent (198,554) (187,035)

290,792 Non-controlling interests 6,446 (16,992)

717,320 (192,108) (204,027)



31 March 2020

Profit/(Loss) for the period from continuing operations

before tax

31 March 2020


Profit/(Loss) after tax for the period from discontinued

operations


6

Ambeon Holdings PLCInterim Consolidated Statement of Financial Position - GroupAs at 30 June 2020

Rs.000' Notes

ASSETS

Non-Current Assets

3,918,435 Property, Plant & Equipment 3,696,335 5,068,616

991,540 Right of use Asset 3 1,006,145 -

3,829,941 Investment Property 3,825,427 3,042,220

1,847,275 Intangible Assets 1,841,752 1,865,492

1,667,298 Other Non- Current Financial Assets 1,599,869 730,496

11,930 Investment in Associate 11,949 -

89,236 Deferred Tax assets 87,392 143,559

12,355,655 12,068,868 10,850,383

Current Assets

4,054,934 Inventories 3,859,175 4,754,252

6,285,620 Trade & Other Receivables 6,271,011 6,513,245

45,966 Income Tax Receivable 45,966 37,448

955,802 Other Financial Investments 862,826 936,206

770,097 Cash & Bank 627,761 1,346,005

12,112,420 11,666,739 13,587,15624,468,074 Total Assets 23,735,607 24,437,539

EQUITY

Equity attributable to owners of the parent

5,331,775 Stated Capital 5,331,775 5,331,775

3,100 Other Reserves 3,100 3,100

952,312 Other Components of Equity 885,346 722,810

1,972,095 Retained Earnings /(Losses) 1,840,507 1,498,503 8,259,282 8,060,729 7,556,187

1,610,953 Non-controlling interests 1,599,445 1,593,0659,870,235 Total Equity 9,660,174 9,149,253

LIABILITIES

Non-Current Liabilities

945 Other Financial Liabilities 945 921

1,696,621 Interest Bearing Loans & Borrowings 1,727,749 1,259,785

761,332 Deferred Tax Liabilities 829,515 786,188

442,357 Retirement benefit obligations 461,217 420,397

88,410 Lease Liability -Right to Use Asset 3 109,608 -

2,989,665 Total Non-Current Liabilities 3,129,034 2,467,292

.

Current Liabilities

3,830,416 Trade & Other Payables 4,106,390 5,751,313

217,655 Income Tax Payables 326,157 232,877

924,173 Contract Liability 806,255 933,509

6,588,856 Interest Bearing Loans & Borrowings 5,664,815 5,903,294

47,074 Lease Liability -Right to Use Asset 3 42,782 -

11,608,174 Total current liabilities 10,946,399 12,820,994

14,597,839 Total Liabilities 14,075,434 15,288,286

24,468,074 Total equity and liabilities 23,735,607 24,437,539

23.14 22.59 21.17

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

Isuru Fernando

Finance Manager

The Board of Directors are responsible for these Financial Statements. Signed for and on behalf of the Board by;

A G Weerasinghe

Director

09 September 2020

Colombo



Director

31 March 2020

(Un-Audited)

30 June 2020

(Unaudited)

30 June 2019

(Unaudited)

Ruwan Sugathadasa

7

Ambeon Holdings PLC

Interim Consolidated Statement of Changes in Equity - Group


Rs.000' Note Stated capitalRevaluation

reserve

Retained

earnings

Foreign

currency

translation

reserve

Other

reserves

Fair Value

throght OCI

Reserve

Currency/Excha

nege Hedge

General

ReserveTotal

Non controlling

interestTotal equity

As at 31 March 2019 (Audited) 5,331,775 1,332,932 1,650,091 (318,009) 3,100 (256,889) - 220 7,743,221 1,610,057 9,353,278

Net profit/(loss) for the period - - (151,589) - - - - - (151,589) (17,093) (168,682)

-

Other comprehensive income - - - 4,092 - (39,538) - - (35,446) 101 (35,345)

Total comprehensive income/(loss) for the period - - (151,589) 4,092 - (39,538) - - (187,035) (16,992) (204,027)

As at 30 June 2019 (Un-Audited) 5,331,775 1,332,932 1,498,503 (313,917) 3,100 (296,426) - 220 7,556,188 1,593,065 9,149,253

As at 31 March 2020 (Un-Audited) 5,331,775 1,429,406 1,972,095 (187,014) 3,100 (265,675) (24,625) 220 8,259,282 1,610,953 9,870,235

Net profit/(loss) for the period - - (131,588) - - - - - (131,588) 446 (131,142)

Other comprehensive income - - - (27,305) - (52,718) 13,057 - (66,966) 6,000 (60,966)

Total comprehensive income/(loss) for the period - (131,588) (27,305) - (52,718) 13,057 - (198,554) 6,446 (192,108)

Subsidiary Dividend to Minority Shareholders - - - - - - - - - (17,954) (17,954)

As at 30 June 2020 (Un-Audited) 5,331,775 1,429,406 1,840,507 (214,319) 3,100 (318,393) (11,568) 220 8,060,729 1,599,445 9,660,174



8

Ambeon Holdings PLC

Interim Consolidated Cash Flow Statement - Group


31 March 2020 Rs.000' 30 June 2020 30 June 2019


Cash flow from operating activities820,642 Profit/(Loss) before tax from continuing operations (91,096) (144,882)

(190,978) Profit/(Loss) before tax from discontinued operations - (375)

629,664 Profit/(Loss) before tax (91,096) (145,257)

Adjustments:

305,596 Depreciation Of Property Plant & Equipment 90,169 95,217

37,727 Impairment of Goodwill - -

1,724 (Profit)/Loss on disposal of Property, plant & equipment - -

574,552 Finance Cost 148,526 175,871

85,729 Provision for gratuity 31,308 29,107

(13,420) Fair Value (Gain)/Loss On Current Investments 8,643 27,937

(787,720) Fair Value Gain on Investment property - -

38,000 Other income - -

198,249 Amortization of Intangible Assets/ROU Assets 50,946 23,640

(13,538) (Profit)/Loss from Disposal of Current Investment (1,070) -

3,070 Share of (Profit)/Loss from Associates - -

47,521 Impairment of PPE - -

1,107,154 237,426 206,516

Working capital adjustments

(270,680) (Increase)/decrease in trade & other receivables (48,808) (330,667)

(41,861) (Increase)/decrease in inventories 260,803 (513,335)

(702,710) Increase/(decrease) in trade & other payables 390,128 858,412

217,309 Increase/(decrease) in Deferred income (117,918) 226,645

(34,828) Gratuity Paid (4,224) (9,094)

(175,874) Income tax paid (5,548) (2,457)

(574,552) Interest paid (148,526) (175,871)

(476,044) Total net cash (used in)/from operating activities 563,333 260,149

Cash flow from investing activities

(184,376) Purchase of Property, plant & equipment (11,283) (65,120)

(495,002) Purchase of intangible assets (1,411) (372,493)

154,774 Proceeds from sale of investment 21,672 -

413 Proceeds from disposal of Property, Plant & equipment - -

(952,683) Investment in Other Financial Investments 65,007 (18,310)

(64,728) Investment In Current Investments - -

(2,243) Investment in Investment Property - (2,243)

(15,000) Investment in Equity Accounted investee - -

(1,558,845) Total net cash (used in)/from investing activities 73,985 (458,165)

Cash flow from financing activities

2,165,184 Proceeds from long-term liabilities, net of payments (507,152) 694,719

(151,466) Acquisition by Non Controlling Interest - -

(57,459) Repayment of lease Obligations (11,742) -

(48,896) Dividend paid to non controlling interest (17,954) -

1,907,363 Total net cash (used in)/from financing activities (536,848) 694,718

156,076 Net foreign Exchange Difference (27,976) 4,193

28,551 Net increase/(decrease) in Cash and Cash equivalents 72,493 500,895

(778,009) Cash and cash equivalents as at 1 April (746,275) (778,009)

(749,458) Cash and cash equivalents as at 30 June (673,781) (277,114)

Cash and cash equivalents as at 30 June

770,097 Favorable Cash and bank balances 627,761 1,346,005

(1,519,555) Unfavorable Cash and Bank balances (1,301,542) (1,623,119) (749,458) (673,781) (277,114)



9

Ambeon Holdings PLC


1. Basis of preparation

Where appropriate, certain financial statement line items have been reclassified to conform to the current period presentation.

2. Opearating Results - Segment Information

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Rs.000' (Unaudited)

Total Revenue 727 106,098 185,094 429,016 1,544,648 2,117,972 24,048 5,730 10,455 8,946 1,459,419 1,623,188 41,980 41,460 3,266,371 4,332,409

Revenue 727 106,098 185,094 429,016 1,544,648 2,117,972 24,048 5,730 10,455 8,946 1,459,419 1,623,188 41,980 41,460 3,266,371 4,332,409

Results

Profit/(Loss) Before Net Finance Cost (10,236) (49,690) (128,088) (62,258) 15,138 90,885 (4,887) (55,067) 6,484 69 139,756 84,996 39,263 22,054 57,430 30,989

Finance Costs (3,328) (21,115) (26,125) (21,630) (32,833) (54,264) (56,916) (53,010) 7,906 4,536 (32,929) (28,196) (4,301) (2,193) (148,526) (175,871)

Profit /(Loss) Before Income Tax (13,564) (70,805) (154,213) (83,888) (17,695) 36,621 (61,803) (108,077) 14,390 4,605 106,827 56,800 34,962 19,861 (91,096) (144,884)

Income Tax Expense 7,000 - - (2,750) 3,556 - (4,861) (5,486) (32,257) (14,873) (7,177) (6,622) (40,046) (23,425)

Profit /(Loss) After Tax (6,564) (70,805) (154,213) (83,888) (20,445) 40,177 (61,803) (108,077) 9,529 (881) 74,570 41,927 27,785 13,239 (131,142) (168,307)

Profit/(Loss) From Discontinued Operation (375) - - - - - - - - - - - - (375)

Net Profit/ (Loss) for the Year (6,564) (71,180) (154,213) (83,888) (20,445) 40,177 (61,803) (108,077) 9,529 (881) 74,570 41,927 27,785 13,239 (131,142) (168,682)

Equity Holders of the Parent (131,588) (151,589)

Non-controlling interests 446 (17,093)

(131,142) (168,682)

Assets and Liabilities

Non-Current Assets 2,153,177 2,110,362 2,705,997 2,378,366 2,391,672 2,505,155 1,721,854 1,239,319 1,576,727 1,294,321 942,571 789,726 576,870 533,135 12,068,868 10,850,384

Current Assets 110,130 649,747 2,431,334 2,083,941 4,049,923 4,762,522 894,618 1,352,946 355,208 453,231 3,482,886 4,103,439 342,641 181,328 11,666,739 13,587,156

Assets classified as held for sale - - - - - - - - - - - - - - - -

Total assets* 2,263,307 2,760,109 5,137,330 4,462,307 6,441,595 7,267,677 2,616,472 2,592,265 1,931,935 1,747,552 4,425,457 4,893,165 919,511 714,463 23,735,607 24,437,540

-

Non-Current Liabilities 458,234 430,338 630,072 577,987 416,376 602,895 1,118,405 705,083 38,130 22,058 452,037 117,875 15,782 11,055 3,129,034 2,467,292

Current Liabilities 294,162 708,781 1,720,261 1,300,900 4,208,808 4,782,013 789,074 1,317,311 37,034 260,015 3,681,033 4,387,634 216,026 64,341 10,946,399 12,820,994

Liabilities classified as held for sale - - - - - - - - - - - - - - - -

Total Liabilities ** 752,396 1,139,119 2,350,332 1,878,887 4,625,184 5,384,908 1,907,479 2,022,394 75,164 282,073 4,133,070 4,505,509 231,808 75,396 14,075,433 15,288,286

Financial Performance - Business Segments

* Segment assets do not include investment in subsidiaries , investment in group preference shares and inter company current account balances.

**Segment liabilities do not include group preference shares and inter company current account balances, including loan balances.

As at 30 June

Group Total

Notes to the Interim Consolidated Financial Statements

The interim consolidated financial statements for the period ended 31 March 2020 have been prepared in accordance with LKAS 34 - Interim Financial Reporting. The Interim 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 Audit Financial Statements as at 31 March 2019.

Period Ended 30 June

Manufacturing Footwear Manufacturing Porcelain Manufacturing Textile Investment Property IT and related Services Financial Services

10

Ambeon Holdings PLC


3 New standards, interpretations and amendments adopted by the Group

SLFRS 16 - Leases

Right of use assets

Lease liabilities

Set out below, are the carrying amounts of right of use assets and lease liability and the movements for the period ended 30th September 2019.

Right of use assets

"000"

Lease

liability

"000"As at 1st April 2020 991,540 135,484

Additions 24,106 24,106

Amortisation (9,502) -

Modifications - -

Interest cost - 4,542

Payment - (11,742)

1,006,145 152,390

SLFRS 09 -Financial instruments- Adoption of Cashflow Hedge Accounting

Accounting Policy for Separate Financial Statements

4 Commitment and Contingencies

DFCC Bank 20

Millennium IT ESP (pvt) Ltd Seylan Bank 2,000

South Asia Textiles Ltd Peoples Bank 804 (USD 4.4 Mn)

Ceylon Leather Products Manufacturers Ltd Peoples Bank 205

Ceylon Leather Products Ltd Bank Of Ceylon 60

SLFRS 16 specifies how an entity will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model

requiring leases recognise assets and liabilities for all leases unless the term is 12 months or less or the underlying asset has a lower value. The

Lessors continue to classify leases as operating or finance as SLFRS 16's approach for lessor accounting substantially unchanged from its

predecessor. SLFRS 16 is effective for financial reporting periods beginning on or after 1st January 2018, with early adoption permitted.

The Group has lease contracts for retail stores typically made for 6 years of lease term and has extension option. Lease terms are

negotiated on an individual basis and contain a wide range of different terms and conditions.

The Group recognises right of use assets when the underlying asset is available for use. Right of use assets are measured at cost, less any

accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes

the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease

incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right

of use assets are depreciated on a straight-line basis over the shorter of its estimated useful life or the lease term.

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the

lease term. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if

the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect

the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a

modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the

underlying asset.

692

For designated and qualifying cashflow hedges, the effective portion of the gain or loss on the hedging instrument is initially recognized directly in

equity in the “Cash flow hedge reserve”. The ineffective portion of the gains or losses on the hedge instrument is recognized immediately in the P/L.

When the hedge cashflow affect the income statement, the gain or loss on the hedging instrument is recorded in the corresponding income or

expense line of the income statement.When a hedging instrument expires, or is sold, terminated, exercised or when a hedge no longer meet the

criteria for hedge accounting, any cumulative gains/losses existing in other comprehensive income at that time remains in other comprehensive

income and is recognized when the hedge forecast transaction ultimately recognized in the income statement. When a forecast transaction is no

longer expected to occur the Cumulative gains/loss was reported in other comprehensive income is immediately transferred to the income

statement.

Investment in Subsidiary are those entities that is controlled by the Company. Investment in subsidiary are accounted at fair value through profit or

loss in accordance with SLFRS 9. They are initially recognized at fair value. Subsequent to initial recognition, the fair value gains or losses are

recognized in the statement of profit or loss in the separate financial statements until the date on which the control is lost. The dividends received

from the Subsidiary are treated as income in the statement of profit or loss of the separate financial statements.

20

174

-


745

Royal Fernwood Porcelain Ltd

Name of the CompanyOutstanding Balance as at 30 June LKR

Mn

16

BankAmount

LKR Mn

People's Bank 65

11


5 FAIR VALUE MEASUREMENT

GROUP

The Group uses the following hierarchy for determining and disclosing the fair value of assets and liabilities by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data

The Group held the following assets and liabilities carried at fair value in the statement of financial position:

Assets Measured at Fair Value

30/6/2020 31/03/2020 30/6/2020 31/03/2020 30/6/2020 31/03/2020Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000

Investment Properties - - - - 3,825,427 3,825,427

Financial Instrument at Amortized Cost - - 23,236 23,236 - -

Land - - - - 992,613 992,613

Buildings - - - - 731,194 731,194

Building on Leasehold Land - - - - 805,500 805,500

Financial Assets

Fair value though Profit or Loss 54,459 54,453 - - - - Fair value though OCI 562,312 562,312 - - - -

616,771 616,765 23,236 23,236 6,354,734 6,354,734

COMPANY 30/6/2020 31/03/2020 30/6/2020 31/03/2020 30/6/2020 31/03/2020Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000

Assets Measured at Fair Value

FVTPL - Financial Assets

Fair Value Through Profit or Loss 54,440 54,440 - - - -

Fair value though OCI 562,312 562,312 - - 12,663,843 12,663,843

Investment in Subsidiaries

616,753 616,753 - - 12,663,843 12,663,843

Financial Assets and Liabilities measured or disclosed at Fair Value

The following methods and assumptions were used to estimate the fair values:

The fair values of the quoted equities are based on price quotations at the reporting date.

Long-term fixed-rate borrowings are evaluated by the Group based on interest rates.

Those assumptions for assets categorised as Level 3 has been described under respective notes to the financial Statements as at 31 March 2019.

Ambeon Holdings PLC


Level 1 Level 2 Level 3

During the reporting period ended 31 March 2019 and 31 March 2020, there were no transfers between Level 1 and Level 2 fair value measurements.

Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 1 Level 2 Level 3

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction

between willing parties, other than in a forced or liquidation sale.

12

Ambeon Holdings PLC


6 Events after reporting date

7 Comparative Information

8 Share Information

a) Number of Shares

No of Ordinary Shares represented in Stated Capital 356,869,666

No of Preference Shares represented in Stated Capital 170,625

b) Market Price Per Ordinary Share

Year Ended

31 March 2019 30 June 2020 30 June 2019

Rs. Rs. Rs.

13.40 High 12.80 9.80

8.00 Low 7.30 7.90

8.10 Close 12.50 9.00

9 Public Shareholding as at 30 June 2020 30 June 2019

Number of Shareholders 4,985 5,266

No. of Shares 65,401,748 63,584,243

Percentage 18.33% 17.82%

Float Adjusted Market Capitalisation - Rs. 817,677,622 572,347,570

10 Directors Shareholdings 30 June 2020 30 June 2019

Name of Director No. of Shares No. of Shares

Mr. S. E. Gardiner Nil Nil

Mr. A. L. Devasurendra Nil Nil

Mr. N. M. Prakash 785,541 450,000

Mr. A. G. Weerasinghe Nil Nil

Mr. R. P. Sugathadasa Nil Nil

Mr. E. M. M. Boyagoda Nil Nil

Mr. R. P. Pathirana Nil Nil

Mr. R. T. Devasurendra Nil Nil


The presentation and classification of the financial statements of the previous years have been amended, where relevant

for better presentation and to be comparable with those of the current year.

Quarter Ended

No circumstances have arisen since the reporting date, which would require adjustment to or disclosure in the Financial

Statements except for;

13


11 Twenty Major Shareholders of the Company as at 30 June 2020 - Ordinary Shares

Name of the Shareholder No of Shares Held %

1 Pan Asia Banking Corporation Plc/Ambeon Capital Plc 177,807,255 49.82

Seylan Bank Plc/Ambeon Capital Plc (Collateral) 112,790,122 31.61

Total 290,597,377 81.43

2 Ceylinco General Insurance Limited 9,443,196 2.65

3 Amana Bank Plc/Almas Organisation (Pvt) Ltd 7,408,955 2.08

4 Hatton National Bank Plc/Carlines Holdings (Pvt) Ltd 5,439,845 1.52

5 Almas Organisation (Private) Limited 2,205,148 0.62

6 Hotel International (Private) Limited 2,154,986 0.60

7 N.Balasingam 1,906,500 0.53

8 Associated Electrical Corporation Ltd 1,728,454 0.48

9 K.V.Hewavitarne 1,349,820 0.38

10 D.F.G Dalpethado 1,109,664 0.31

11 People's Leasing & Finance Plc/L.P.Hapangama 955,836 0.27

12 Hatton National Bank Plc/Sanka Ramoorthy Nadaraj Kumar 797,282 0.22

13 N.M.Prakash 785,541 0.22

14 C.R.Perera 727,381 0.20

15 Sampath Bank Plc/ Dr.T.Senthilverl 675,000 0.19

16 Merchant Bank Of Sri Lanka & Finance Plc 01 650,000 0.18

17 S.Yaddehige 557,127 0.16

18 People's Merchant Finance Plc/H.P.C.R. Priyadarshana 508,492 0.14

19 Hatton National Bank Plc/Biswajith Udayapriya Hettiarachchi 465,931 0.13

20 Hatton National Bank Plc/Subramaniam Vasudevan 429,448 0.12

Others 26,973,683 7.56 Total 356,869,666 100.00

12 Twenty Major Shareholders of the Company as at 30 June 2020 - Preference Shares

Name of the Shareholder No. of Shares Held %

1 Standard Finance Limited 18,616 10.91

2 Mr G C W De Silva 9,484 5.56

3 Mr M V Theagarajah 8,744 5.12

4 Life Insurance Corporation of India 8,146 4.77

5 K Theagarajah 8,000 4.69

6 Mrs B L Macrae 6,658 3.90

7 A L Clarke 6,658 3.90

8 Mr M V Theagarajah 6,447 3.78

9 Shalsri Investment Ltd 5,000 2.93

10 The Land & House Property Company Ltd 4,500 2.64

11 The Administratix of the Estate of Pietro Fernando 4,000 2.34

12 Mr S Sivalingam Attorney for Mrs R Sivaraman Widow of Late 3,672 2.15

13 Muthunayagam Mahesweri Brito 3,500 2.05

14 B Selvanayagam 3,000 1.76

15 A M Felsinger 2,684 1.57

16 K N Woutersz 2,684 1.57

17 Mr S Navaratnam 2,682 1.57

18 M G Sabaratnam 2,500 1.47

19 Mr S A Scharenguivel 2,450 1.44

20 Mr P S Wijewardena 2,194 1.29

Others 59,006 34.58

Total 170,625 100.00

Ambeon Holdings PLC


14

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