LEGAL FORM BANKERS
A Public Limited Company Hatton National Bank PLC
Incorporated in Sri Lanka in 1987 Hongkong and Shanghai Banking Corporation Ltd
Company Number PQ 21 Standard Chartered Bank
Seylan Bank PLC
People's Bank
Deutsche Bank
THE STOCK EXCHANGE LISTING Cargills Bank
The ordinary shares of the company are listed with the Colombo Stock National Development Bank PLC
Exchange of Sri Lanka NDB Wealth Management Ltd
DIRECTORS AUDITORS
A. M. Pandithage - Chairman Ernst & Young
H.S.R.Kariyawasan - Managing Director Chartered Accountants,
F. R. Alles - (Deceased 30/01/2018) 201, De Saram Place
H.C.S.Mendis - (Resigned w.e.f. 19/09/2017) P.O. Box. 101, Colombo.
Dr. S. A. B.Ekanayake Sri Lanka.
S. C. Ganegoda
T. G. Thoradeniya LEGAL ADVISORS
K. S. Padiwita Corporate Legal Department
M.I.L.Perera Julius & Creasy - Attorneys At Law
Dr. T. K. D. A. P. Samarasinghe - (Appointed w.e.f. 01/09/2017)
L. A. K. I. Kodytuakku - (Appointed w.e.f. 17/11/2017)
D. K. DE Silva Wijeyeratne - (Appointed w.e.f. 01/04/2018)
REGISTERED OFFICE SECRETARIES
Hayleys Building Hayleys Group Services (Pvt) Limited
400, Deans Road, Colombo 10, Sri Lanka. No. 400, Deans Road, Colombo 10, Sri Lanka.
Telephone :(94-11) 2627000 Telephone : (94-11) 2627650
Fax:(94-11) 2699299 Fascimile : (94-11) 2627655
E-mail : [email protected]
FACTORY / OFFICE
193, Minuwangoda Road, Kotugoda, Sri Lanka
Telephone : (94-11)2232939
Fax: (94-11) 2232941
Please direct any queries about the administration of shareholding
E-mail : [email protected] to the Company Secretaries.Web Site : www.hayleysfibre.com
CORPORATE INFORMATION
HAYLEYS FIBRE PLC 1
Unaudited Audited
As at 31st March 31st March
2018 2017
Note Rs.'000 Rs.'000
ASSETS
Non-Current Assets
Property, Plant & Equipment 72,290 64,839 #REF!
Investment in Equity Accounted Investee 67,127 49,562 #REF!
Other Non Current Financial Assets 94,576 93,048 #REF!
Total Non Current Assets 233,993 207,449
Current Assets
Inventories 45,717 27,210 #REF!
Trade and Other Receivables 65,486 85,566 #REF!
Other Current Assets 7,506 4,462 #REF!
Amounts Due from Other Related Parties 3,121 2,941 #REF!
Amounts Due from Equity Accounted Investee 2,443 - #REF!
Short Term Deposits 529,790 459,168 #REF!
Cash in Hand and at Bank 8,004 35,045 #REF!
Total Current Assets 662,067 614,392
Total Assets 896,060 821,841
EQUITY AND LIABILITIES
Equity
Stated Capital 2 80,000 80,000 #REF!
Other Component of Equity 73,152 74,779 #REF!
Amalgamation Reserves 50,625 50,625 #REF!
Revenue Reserves 595,912 531,945 #REF!
Total Equity 799,689 737,349
Non-Current Liabilities
Deferred Tax Liabilities 5,031 207 #REF!
Retirement Benefit Obligations 18,582 15,128 #REF!
Total Non-Current Liabilities 23,613 15,335
Current Liabilities
Trade and Other Payables 47,580 29,917 #REF!
Other Current Liabilities 3,723 6,717 #REF!
Amount Due to Other Related Parties 5,764 3,672 #REF!
Amount Due to Joint Venture - 73 #REF!
Income Tax Payable 2,809 5,415 #REF!
Interest Bearing Borrowings 12,882 23,363 #REF!
Total Current Liabilities 72,758 69,157
Total Liabilities 96,371 84,492
Total Equity and Liabilities 896,060 821,841
Net Assets per Share (Rs.) 99.96 92.17
-
Sgd.
M.C.Sampath
Chief Financial Officer
Figures in brackets indicate deductions.
The 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.
A.M.Pandithage H. S. R. Kariyawasan
Chairman Managing Director
8th May 2018
Colombo
Interim Financial Statements For the Year Ended 31st March 2018
Sgd.
STATEMENT OF FINANCIAL POSITION
I certify that the financial statements of the company comply with the requirements of the Companies Act No 7 of 2007.
HAYLEYS FIBRE PLC 2
Unaudited Audited
31st March 31st March
2018 2017 Variance
Rs.'000 Rs.'000 Rs.'000
Revenue 562,659 478,976 83,683
Cost of Sales (489,780) (418,259) (71,521)
Gross Profit 72,879 60,717 12,162
Other Income 4,961 229,275 (224,314)
Administrative Expenses (44,422) (50,356) 5,934
Distribution Expenses (2,121) (630) (1,491)
Profit from Operations 31,297 239,006 (207,709)
Finance Income 58,215 18,129 40,086
Finance Expenses (2,039) (7,914) 5,875
Net Finance Income / (Expenses) 56,176 10,215 45,961
Share of Profit of Equity Accounted Investee (Net of Tax) 32,868 29,544 3,324
Profit Before Taxation 120,341 278,765 (158,424)
Tax Expenses (19,378) (11,495) (7,883)
Profit for the period 100,963 267,270 (166,307)
Earnings per Share (Rs.) 12.62 33.41
Share Prices
Year Ended Year Ended31/03/2018 31/03/2017
Highest Rs.92.00 Rs.104.50
Lowest Rs.61.50 Rs.37.30
Last Traded Price Rs.70.90 Rs.59.30
The Notes on pages 9 & 10 form an integral part of these Financial Statements.
Figures in brackets indicate deductions.
Interim Financial Statements For the Year Ended 31st March 2018
INCOME STATEMENT
HAYLEYS FIBRE PLC 3
Unaudited Audited
For the Year Ended 31st March 31st March
2018 2017
Rs.'000 Rs.'000
Profit for the Year Ended 100,963 267,270
Other Comprehensive Income
Net Gain on Available-For-Sale Financial Assets 1,528 452
Re-measurement Gains/(Losses) on Defined Benefit Plans (5,764) (401)
Share of Oher Comprehensive Income of Equity Accounted Investee (39) -
Revaluation of Land - 8,058
Deferred Tax on Other Comprehensive Income (2,348) 48
Other Comprehensive Income for the Year, Net of Tax (6,623) 8,157
Total Comprehensive Income for the Year, Net of Tax 94,340 275,427
Figures in brackets indicate deductions.
Interim Financial Statements For the Year Ended 31st March 2018
HAYLEYS FIBRE PLC 4
Quarter Ended Quarter Ended
31st March 31st March
2018 2017 Variance
Rs.'000 Rs.'000 Rs.'000
Revenue 198,635 132,643 65,992
Cost of Sales (164,668) (108,103) (56,565)
Gross Profit 33,967 24,540 9,427
Other Income 1,059 216,791 (215,732)
Administrative Expenses (10,681) (12,251) 1,570
Distribution Expenses (546) 98 (644)
Profit from Operations 23,799 229,178 (205,380)
Finance Income 17,568 11,513 6,055
Finance Expenses (337) (1,706) 1,369
Net Finance Income / (Expenses) 17,231 9,807 7,424
Share of Profit of Equity Accounted Investee (Net of Income Tax) 9,463 2,902 6,561
Profit Before Taxation 50,493 241,887 (191,394)
Income Tax Expenses (13,654) (9,989) (3,665)
Profit for the Quarter 36,839 231,898 (195,059)
Earnings per Share (Rs.) 4.60 28.99
Figures in brackets indicate deductions.
Share Prices 4th Quarter 4th Quarter
of 2018 of 2017
Highest Rs.82.00 Rs.93.40
Lowest Rs.68.00 Rs.57.30
Last Traded Price Rs.70.90 Rs.59.30
Interim Financial Statements For the Year Ended 31st March 2018
INCOME STATEMENT
HAYLEYS FIBRE PLC 5
For the Quarter Ended 31st March 31st March
2018 2017
Rs.'000 Rs.'000
Profit for the Quarter Ended 36,839 231,898
Other Comprehensive Income
Net Gain on Available-For-Sale Financial Assets 1,363 255
Re-measurement Gains/(Losses) on Defined Benefit Plans (5,764) (401)
Share of Oher Comprehensive Income of Equity Accounted Investee (39) -
Revaluation of Land - 8,058
Deferred Tax on Other Comprehensive Income (2,348) 48
Other Comprehensive Income for the Quarter ,Net of Tax (6,788) 7,960
Total Comprehensive Income for the Quarter ,Net of Tax 30,051 239,858
Figures in brackets indicate deductions.
STATEMENT OF COMPREHENSIVE INCOME
Interim Financial Statements For the Year Ended 31st March 2018
HAYLEYS FIBRE PLC 6
For the Year Ended Unaudited Audited
31st March 31st March
2018 2017
Rs. '000 Rs. '000
Cash Flows from Operating Activities
Profit Before Tax 120,341 278,765
Adjustments for
Share of Profit of Equity Accounted Investee (32,868) (29,544)
Depreciation on Property, Plant & Equipment 2,347 2,915
Impairment of Property, Plant & Equipment - 829
Interest Expense 2,039 4,860
Interest Income (58,215) (13,939)
- (215,601)
Provision/(Reversal) for Slow Moving Inventories (1,613) 2,209
Provision for Defined Benefit Plan Cost 2,524 2,177
Operating Profit before Working Capital Changes 34,555 32,671
(Increase)/Decrease in Inventories (16,894) 30,364
(Increase)/ Decrease in Trade and Other Receivables 17,036 (25,624)
(Increase)/Decrease in Dues from Other Related Parties (2,623) 28,832
Increase/(Decrease) in Trade Dues to Other Related Parties 2,019 484
Increase /(Decrease) in Trade and Other Payables 14,669 578
Cash Generated from Operations 48,762 67,305
Interest Expense (2,039) (4,860)
Income Tax Paid (19,508) (3,421)
Defined Benefit Obligations (4,834) -
Net Cash Flows from Operating Activities 22,381 59,024
Cash Flows from / (Used in) Investing Activities
Acquisition of Property, Plant & Equipment (9,807) (10,109)
9 420,478
Dividend Received 508 -
Dividend Received from Equity Accounted Investee 14,756 34,209
Interest Received 58,215 13,939
Net Cash flows from Investing Activities 63,681 458,517
Dividend Paid (32,000) (16,000)
Net Cash Flows from Financing Activities (32,000) (16,000)
Net Increase/(Decrease) in Cash and Cash Equivalents 54,062 501,541
Cash and Cash Equivalents at the Beginning of the Year 470,850 (30,691)
Cash and Cash Equivalents (Note A) 524,912 470,850
A. Analysis of Cash and Cash Equivalents
Cash & Bank Balance 8,004 35,045
Short Term Deposits 529,790 459,168
537,794 494,213
Short Term Loan and Overdrafts (12,882) (23,363)
Cash in Hand and at Bank 524,912 470,850
Figures in brackets indicate deductions. -
Interim Financial Statements For the Year Ended 31st March 2018
STATEMENT OF CASH FLOW
Net gain on Disposal of Property, Plant and Equipment and
Investment Property
Proceeds from Sale of Property, Plant & Equipment and investment
property
HAYLEYS FIBRE PLC 7
Amalgamation Amalgamation Retained Total
Stated Revaluation Available Capital Revenue Earnings
Capital Reserve for Sale Reserve Reserve Reserve
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Balance as at 1st April 2016 80,000 189,001 51,786 14,000 36,625 106,510 477,922
Profit for the Year - - - - - 267,270 267,270
Acturial Gain on Employee Benefit Obligations - - - - - (401) (401)
Deferred Tax on Other Comprehensive Income - - - - - 48 48
Net Gain on Available for Sale Financial Assets - - 452 - - - 452
Surplus on revaluation of land - 8,058 - - - - 8,058
Land Revaluation Reserve Transfer - (174,518) - - - 174,518 -
Dividend Paid - - - - - (16,000) (16,000)
Balance as at 31st March 2017 80,000 22,541 52,238 14,000 36,625 531,945 737,349
Balance as at 1st April 2017 80,000 22,541 52,238 14,000 36,625 531,945 737,349
Profit for the Year - - - - - 100,963 100,963
Acturial Gain on Employee Benefit Obligations - - - - - (5,764) (5,764)
Deferred Tax on Other Comprehensive Income - (3,155) - - - 807 (2,348)
Share of other comprehensive income of equity
accounted investee- - - - - (39) (39)
Net Gain on Available for Sale Financial Assets - - 1,528 - - - 1,528
Dividend Paid * - - - - - (32,000) (32,000)
Balance as at 31st March 2018 80,000 19,386 53,766 14,000 36,625 595,912 799,689
*Company paid a Second Interim (final) dividend of Rs. 2/= per share on 9th June 2017 for the financial year 2016/2017.
*Company paid a First Interim dividend of Rs. 2/= per share on 27th February 2018 for the financial year 2017/2018.
STATEMENT OF CHANGES IN EQUITY
Attributable to Owners of the Company
Other Component of Equity`
Interim Financial Statements For the Year Ended 31st March 2018
HAYLEYS FIBRE PLC 8
1
2 Stated Capital 31st March 2018 31st March 2017
Value - ordinary shares (Rs.) 80,000,000 80,000,000
No of shares - ordinary shares 8,000,000 8,000,000
Voting rights One vote per
ordinary share
One vote per
ordinary share
3 Contingencies
year ended 31.03.2018.
4 Events Occurring after the Reporting Date
5 Share Trading from 1st April 2017 to 31st March 2018
No of transactions 7,089
No of shares traded 1,749,119
Value of shares traded (Rs.) 136,390,175
The Directors have recommended the payment of proposed final dividend of cents 75 per share on 8th May 2018, for the year ended
31st March 2018, payable on 6th July. In accordance with Sri Lanka Accounting Standard No.10 on "Events after reporting period",
this dividend has not been recognized as a liability as at the reporting date.
Interim Financial Statements For the Year Ended 31st March 2018
Notes to the Financial Statements
There has not been a significant change in the nature of contingent liabilities, which were disclosed in the Annual Report for the
The Interim Financial Statements of the Company have been prepared on the basis of the same accounting policies and methods applied for the
year ended 31st March 2017, are in compliance with Sri Lanka Accounting Standards -LKAS 34 - "Interim Financial Reporting". where
necessary, comparative figures have been re-classified to confirm with the current presentation as per the SLFRS/LKAS adjustment.
HAYLEYS FIBRE PLC 9
6 Twenty Largest Shareholders March
2018
No of Shares %
1 Hayleys PLC No. 3 Share Investment A/C 5,200,000 65.00
2 Nation Lanka Capital LTD / Mr. K. L. G. Udayananda 126,541 1.58
3 People's Merchant Finance PLC / J. P. N. P. K. Jayasekera 89,235 1.12
4 Mr. S. Srikanthan & Mrs. S. Srikanthan 75,000 0.94
5 Mrs. M. J. Nihara 53,456 0.67
6 Mr. A. R. Ibrahim 48,220 0.60
7 Mrs. G. J. E. S. De Fonseka 38,570 0.48
8 Bansei Securities Capital (Pvt) Ltd / C. J. Gunarathna 34,571 0.43
9 Dr. D. Jayanntha 32,000 0.40
10 MBSL / Mr. N. K. C. J. De Silva 31,674 0.40
11 People's Leasing & Finance PLC / Mr. D. N. Perera 26,680 0.33
12 Mr. N. K. A. D. De Silva 26,205 0.33
13 Mr. R. Rasaretnam (Deceased) 26,052 0.33
14 Mr. J. P. N. P. Jayasekera 25,328 0.32
15 Mr. J. P. R. Karunarathne 25,006 0.31
16 Mr. T. C. U. Jayanetti & Dr. A. L. T. P. Amarawickrama 25,000 0.31
17 Mrs. L.P. Thenabadu & Mr. S.K. Thenabadu 23,832 0.30
18 Dr. A.K.A. Jayawardene 22,042 0.28
19 Mr. T.D. De Jonk 20,653 0.26
20 Mr. P. V. D. S. S. Saparamadu & Mrs. R. M. A. P. Rathnayake 20,000 0.25
Total 5,970,065 74.63
7 Director's Shareholdings as at 31st March 31st March
2018 2017
No of Shares No of Shares
MR. A. M. PANDITHAGE 320 320
MR. H. S. R. KARIYAWASAN NIL NIL
DR. S. A. B. EKANAYAKE NIL NIL
MR. S. C. GANEGODA 608 608
MR. T. G. THORADENIYA NIL NIL
MR. K. S. PADIWITA 1,280 1,280
MR. M. I. L. PERERA NIL NIL
Dr. T. K. D. A. P. SAMARASINGHE NIL NIL
MR. L. A. K. I. KODYTUAKKU NIL NIL
MR. D. K. DE SILVA WIJEYERATNE - (Appointed w.e.f. 01/04/2018) NIL NIL
8 Public Holding
PERCENTAGE OF PUBLIC HOLDING 34.97%
TOTAL NO. OF SHAREHOLDERS REPRESENTING PUBLIC HOLDING 4,441
FLOAT-ADJUSTED MARKET CAPITALIZATION 198,349,840
9 There were no non voting shares as at 31st March 2018
Name
Interim Financial Statements For the Year Ended 31st March 2018
NOTES TO THE FINANCIAL STATEMENTS
The Company complies with option 5 of the Listing Rules 7.13.1 (a) – Less than Rs.2.5 Bn Float Adjusted Market Capitalization which requires 20% minimum Public Holding.
Name of the Director
HAYLEYS FIBRE PLC 10