CHEMICAL INDUSTRIES (COLOMBO) PLC INTERIM REPORT TWELVE MONTHS ENDED 31ST MARCH

Transcription

1 CHEMICAL INDUSTRIES (COLOMBO) PLC INTERIM REPORT TWELVE MONTHS ENDED 31ST MARCH 2010

2 CORPORATE INFORMATION NAME OF THE COMPANY Chemical Industries (Colombo) PLC. COMPANY REGISTRATION NO. PQ 88 LEGAL FORM A Public Quoted Company with limited liability incorporated in Sri Lanka in DIRECTORS B R L Fernando - Chairman S P S Ranatunga - Managing Director / CEO S H Amarasekera E F G Amerasinghe R S Captain P S C Fernando M P Jayawardena Prof. P W M B B Marambe J S Mather SECRETARY P S C Fernando AUDITORS KPMG Ford, Rhodes, Thornton & Company Chartered Accountants 32A, Sir Mohamed Macan Markar Mawatha Colombo 03. LEGAL ADVISERS Julius & Creasy Attorneys - at - Law 41, Janadhipathi Mawatha, Colombo 01. Nithya Partners Attorneys - at -Law 51, Gregorys Road, Colombo 07. REGISTERED OFFICE CIC House 199, Kew Road Colombo 02. Chemical Industries (Colombo) PLC 1

3 9.64 (431.39) INCOME STATEMENT - COMPANY Three months to Three months to Variance % Twelve Twelve 31st March Rs.'000 Rs.'000 Rs.'000 Rs.'000 Variance % Continuing operations Revenue 992, , ,591,841 3,058, Cost of sales (760,947) (450,190) (2,712,967) (2,208,410) Gross profit 231, ,578 (5.28) 878, , Other income 14,964 82,979 (81.97) 274, ,479 (1.78) Distribution expenses (71,069) (59,388) (228,399) (172,548) Administrative expenses (108,600) (186,437) (41.75) (439,130) (461,797) (4.91) Other expenses 1,020 (15,206) (106.71) - (25,966) (100.00) Financing costs (1,050) (25,648) (95.91) (28,630) (56,828) (49.62) Profit before tax 66,939 40, , , Income tax expense (35,499) 6,674 (631.90) (113,589) (119,436) (4.90) Profit for the period from continuing operations 31,440 47,552 (33.88) 343, , Discontinued operations Profit/(loss) from discontinued operations 4,120 (7,986) (151.59) 17,900 (17,196) (204.09) Profit for the period 35,560 39,566 (10.12) 361, , Earnings per share Basic/diluted earnings per share Rs (10.12) Earnings per share from continuing operations Basic/diluted earnings per share Rs (33.88) Note: Figures in brackets indicate deductions. The above figures are provisional and unaudited. Chemical Industries (Colombo) PLC 2

4 INCOME STATEMENT - GROUP Three Three Variance % Twelve Twelve 31st March Rs.'000 Rs.'000 Rs.'000 Rs.'000 Variance % Continuing operations Revenue 4,147,944 3,906, ,610,474 15,684, Cost of sales (3,254,789) (3,111,819) 4.59 (13,247,079) (12,569,049) 5.39 Gross profit 893, , ,363,395 3,115, Other income 73, ,707 (64.82) 484, , Distribution expenses (296,114) (279,294) 6.02 (997,814) (897,274) Administrative expenses (393,546) (441,537) (10.87) (1,301,376) (1,221,977) 6.50 Other expenses 630 (79,143) (100.80) (3,250) (160,453) (97.97) Financing costs (108,739) (262,984) (58.65) (671,809) (734,644) (8.55) Share of profit of equity accounted investees 67,842 69,459 (2.33) 212, ,479 (19.60) Profit before tax 236,650 9,874 2, ,086, , Income tax expense (85,112) (25,479) (341,372) (278,429) Profit for the period from continuing operations 151,538 (15,605) (1,071.09) 745, , Discontinued operations Profit /(loss) for the period from Discontinued operations 4,150 (14,990) (127.69) 17,900 (23,710) (175.50) Profit for the period 155,688 (30,595) (608.87) 763, , Attributable to : Equity holders of the Company 122,645 11, , , Minority interest 33,043 (42,506) (177.74) 162,253 66, Profit for the period 155,688 (30,595) (608.87) 763, , Earnings per share Basic/diluted earnings per share Rs Earnings per share from continuing operations Basic/diluted earnings per share Rs Note: Figures in brackets indicate deductions. The above figures are provisional and unaudited. Chemical Industries (Colombo) PLC 3

5 Balance Sheet Company Group As at 31st March Rs.'000 Rs.'000 Rs.'000 Rs.'000 ASSETS Non- Current Assets Property, plant & equipment 872, ,826 4,468,727 4,072,614 Capital work-in-progress 2,580 3,573 90,668 52,408 Deposit on leasehold propety ,109 - Biological Assets ,765 58,833 Intangible assets ,882 49,541 Deferred tax assets ,373 20,648 Investment in subsidiaries 569, , Investment in equity accounted investees 36,000 36, , ,707 Other long-tem investments 67,075 6,708 84,799 44,212 1,547,232 1,500,392 5,314,723 4,791,963 Current Assets Inventories 678, ,742 3,864,385 3,287,116 Trade receivables 1,242,426 1,074,550 3,693,622 4,159,713 Other receivables 139, ,204 2,299, ,381 Assets classified as held for sale 93,962 78,843 93,962 78,843 Cash in hand and at bank 31,954 41, , ,156 2,186,618 2,099,150 10,652,781 9,150,209 Total Assets 3,733,850 3,599,542 15,967,504 13,942,172 EQUITY AND LIABILITIES Equity attributable to Equity Holders of the Company Stated capital 1,008,450 1,008,450 1,008,450 1,008,450 Capital reserves 422, , , ,535 Revenue reserves 782, , , ,572 Retained earnings 759, ,222 2,543,211 2,084,451 2,972,711 2,753,326 5,057,635 4,555,008 Minority interest - - 1,330,383 1,095,388 Total Equity 2,972,711 2,753,326 6,388,018 5,650,396 Non-Current Liabilities Long-term loans and borrowings 1,306 2, , ,259 Retirement benefit obligations 110, , , ,504 Government grants - - 3,750 4,375 Deferred tax liabilities 22,020 25, , , , , , ,488 Current Liabilities Trade payables 455, ,994 4,840,729 2,904,349 Short-term loans and borrowings ,665 2,197,728 1,867,898 Income tax payable 50,202 56, , ,944 Accruals and other payables 120,296 79, , ,931 Bank overdrafts ,198 1,195,839 2,135, , ,819 8,713,954 7,383,288 Total Liabilities 761, ,216 9,579,486 8,291,776 Total Equity and Liabilities 3,733,850 3,599,542 15,967,504 13,942,172 Net assets per share The above figures are provisional and unaudited. I certify that the above financial statements have been prepared in accordance with the requirements of the Companies Act No. 07 of (sgd) P D S Ruwanpura Finance Manager The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board, (sgd) B R L Fernando (sgd) S P S Ranatunga (sgd) P S C Fernando Chairman Managing Director/ CEO Group Finance Director / Secretary 21st May 2010,Colombo Chemical Industries (Colombo) PLC 4

6 STATEMENT OF CHANGES IN EQUITY Company Stated Capital Capital Reserves General Reseve Retained Earnings Total Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance as at ,008, , , ,222 2,753,326 Profit for the period , ,540 Dividends (142,155) (142,155) Balance as at ,008, , , ,607 2,972,711 Balance as at ,008, , , ,131 2,619,235 Profit for the period , ,246 Dividends (142,155) (142,155) Balance as at ,008, , , ,222 2,753,326 Group Attributable to the equity holders of the company Stated Capital General Retained Total Capital Reserves Reserve Earnings Minority Total Equity Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance as at ,008, , ,572 2,084,451 4,555,008 1,095,388 5,650,396 Profit for the period , , , ,168 Revaluation - 43, ,867 36,844 80,711 Minority investment in subsidiary ,940 82,940 Dividend (142,155) (142,155) (47,042) (189,197) Balance as at ,008, , ,572 2,543,211 5,057,635 1,330,383 6,388,018 Balance as at ,008, , ,572 1,807,631 4,298,291 1,081,772 5,380,063 Profit for the period , ,591 66, ,485 Effect of adopting SLAS 14 - (5,800) - - (5,800) (3,761) (9,561) Change due to deemed disposal of equity accounted investees - (14,303) - 14, Net assets transferred on acquition (4,055) (4,055) (2,785) (6,840) Minority investment in subsidiary ,959 28,959 Change in effective holding ,136 1,136 11,156 12,292 Dividend (142,155) (142,155) (86,847) (229,002) Balance as at ,008, , ,572 2,084,451 4,555,008 1,095,388 5,650,396 Note: Figures in brackets indicate deductions. The above figures are provisional and unaudited. Chemical Industries (Colombo) PLC. 5

7 CASHFLOW STATEMENT Company Group For the period ended 31st March Rs. '000 Rs. '000 Rs. '000 Rs. '000 Cash flow from operating activities Cash generated from/(used for) operations (Note A) 431,784 (51,692) 2,398,179 (13,324) Interest paid (28,630) (56,828) (671,809) (734,644) Retirement benefit paid (26,497) (4,044) (45,502) (12,590) Income tax paid (134,882) (78,774) (364,962) (284,487) Net cash inflow/(outflow) from operating activities 241,775 (191,338) 1,315,906 (1,045,045) Cash flow from investing activities Addition to property, plant & equipment (58,706) (53,651) (676,893) (473,618) Prepayment made on leasehold property - - (15,160) - Addition to biological assets - - (3,912) (11,973) Proceeds from disposal of property, plant & equipment 36,290 7,553 67,425 27,750 Proceeds from disposal of subsidiary and equity accounted investees - 7, ,906 Proceeds from disposal of long-term investments 535 2,158 79, ,861 Proceeds from sale of biological assets ,096 - Government grant received Dividend received from subsidiaries 47,715 80, Dividend received from equity accounted investees 197, , , ,352 Dividend received from other companies 6 1,788 1,093 7,532 Increase in intangible assets - - (1,938) (28,893) Investment in subsidiaries and equity accounted investees - (103,537) - (3,537) Other long term investments (60,367) - (111,985) (2,194) Net cash from acquisition of subsidiary - - (45,093) (61,600) Investment by minority in subsidiary - - 9,900 - Dividend paid to minority shareholders - - (47,042) (86,847) Net cash inflow/(outflow) from investing activities 163, ,822 (533,764) 306,739 Net Cash inflow/(outflow) before financing activities 404,888 (86,516) 782,142 (738,306) Cash flow from financing activities Dividends paid (142,155) (142,155) (142,155) (142,155) Long term loans repaid (737) (2,353) (640,616) (558,823) Long term loans received , ,841 Net cash inflow/(outflow) from financing activities (142,892) (144,508) (307,940) (90,137) Net increase / (decrease) in cash & cash equivalents during the period 261,996 (231,024) 474,202 (828,443) Cash & cash equivalents at the beginning of the period (230,387) 637 (2,822,042) (2,010,440) Effect of exchange rate fluctuations on cash & cash equivalents - - (25,464) 16,841 Cash & cash equivalents at the end of the period (Note B) 31,609 (230,387) (2,373,304) (2,822,042) Note A - Cash generated from / (used for) operations Profit before interest and tax from continuing operations 485, ,706 1,545,807 1,246,789 Profit /(loss) before interest and tax from discontinued operations 28,700 (26,456) 28,700 (32,970) Profit before interest and tax 514, ,250 1,574,507 1,213,819 Adjustments for: Depreciation on property, plant & equipment 50,682 52, , ,401 (Gain) /loss on disposal of property, plant & equipment (29,858) 255 (43,649) (6,233) (Gain) /loss on disposal of biological assets ,306 (Gain) /loss on disposal of subsidiary and equity accounted investees - (6,367) - (97,362) (Gain) /loss on disposal of long term investments (535) 2,237 (11,608) (147,297) Provision for retirement benefit costs 21,498 25,474 57,602 51,907 Impairment of goodwill ,015 Amotisation of prepayment on leased hold property Amotisation of surplus on acquision (4,540) Provison/(reversal) of provisional fall in value of investments - (1,500) 3,250 (4,501) Provision for group company receivables - CIC Environment Management Liquid (Pvt) Ltd. - 17, Provision for bad and doubtful debts 60,795 33, , ,491 Provision for written-down value of inventories 12,880 13,881 65, ,945 Gain from changes in fair value - biological assets - - (9,116) (2,473) Grants amortised - - (625) (625) Dividend income (245,361) (244,557) (1,093) (7,532) Net (gain) /loss on translation of foreign currency (2,185) 8,646 (53,449) 128,438 Operating profit before working capital changes 382, ,970 2,010,355 2,083,759 (Increase)/decrease in trade and other receivables (236,290) (272,621) (998,570) (1,073,481) (Increase)/decrease in inventories 80,409 (186,524) (642,571) (994,565) Increase/(decrease) in trade and other payables 205,190 63,483 2,028,965 (29,037) Cash generated from / (used for) operations 431,784 (51,692) 2,398,179 (13,324) Note B - Analysis of cash & cash equivalents at the end of the period Cash in hand and at bank 31,954 41, , ,156 Short term loans & borrowings - (199,000) (1,878,469) (1,447,032) Bank overdrafts (345) (73,198) (1,195,839) (2,135,166) 31,609 (230,387) (2,373,304) (2,822,042) Chemical Industries (Colombo) PLC 6

8 SEGMENTAL INFORMATION Group For the twelve months ended 31st March Rs.'000 Rs.'000 (a) Segmental Revenue Construction Industry 606, ,536 Agricultural & Livestock Industry 11,750,917 10,927,481 Industrial Raw Material 960, ,949 Packaging Industry 487, ,989 Consumer & Pharmaceutical 2,952,030 2,650,911 Others 76,265 80,307 Total Revenue 16,833,086 15,854,173 Intra-group sales (222,612) (170,118) Net Revenue 16,610,474 15,684,055 (b) Segmental Results Construction Industry 58,309 54,195 Agricultural & Livestock Industry 740, ,815 Industrial Raw Material 52,018 27,034 Packaging Industry 79,145 70,466 Consumer & Pharmaceutical 215, ,889 Others 31,900 20,840 Net Segmental Results 1,177, ,239 Unallocated expenses (116,346) (99,937) 1,060, ,302 Other income 484, ,487 Financing costs (671,809) (734,644) Share of profit of equity accounted investees 212, ,479 Income tax expense (341,372) (278,429) Profit for the period from continuing operations 745, ,195 Profit/(loss) for the period from discontinued operations 17,900 (23,710) Profit for the period 763, ,485 Attributable to: Equity holders of the company 600, ,591 Minority interest 162,253 66,894 Profit for the period 763, ,485 Note : Figures in brackets indicate deductions. The above figures are provisional and unaudited. Chemical Industries (Colombo) PLC 7

9 NOTES TO THE FINANCIAL STATEMENTS Company Group For the twelve months ended 31st March (In Rs. '000) 1 Other Income Rent income 23,412 22,680 22,146 21,644 Exchange gain 2,185-53,449 - Interest income 1,415 4,326 91,889 99,633 Dividend income 245, ,557 1,093 7,532 Gain on disposal of investments 535 4,130 11, ,659 Gain on disposal of property plant and equipment ,477 10,238 Reversal of provision for fall in value of investments - 1,500-4,501 Amortisation of negative goodwill ,540 Funds received from Government to CIC Agri Businesses (Pvt) Limited ,000 - Sundry 920 2,286 40,190 18,740 Total 274, , , ,487 2 Financing Cost Interest on long-term loans , ,092 Interest on lease liabilities ,163 6,096 Interest on short-term loans & overdraft 28,250 56, , ,456 Total 28,630 56, , ,644 3 Market value of a share For the three months ended 31st March Voting Non-Voting Voting Non-Voting Rs. Rs. Rs. Rs. Highest Lowest Period end Number of Shares As at end of 31st March Ordinary Shares 72,900,000 72,900,000 Non-Voting (Class X) 21,870,000 21,870,000 Total 94,770,000 94,770,000 5 Dividend paid 2009/ /2009 Voting Non-Voting Voting Non-Voting Rs. Rs. Rs. Rs. Interim Final Total The Accounting Policies and methods followed in the preparation of the Income Statement for the twelve months ended 31st March 2010 and the 7 The presentation and classification of figures for the corresponding period of the previous year have been amended, where relevant to be comparable 8 Balance Sheet as at 31st March 2010 are consistent with those used in the preparation of Financial Statements for the year ended 31st March 2009 and are also in compliance with Sri Lanka Accounting Standard 35 - Interim Financial Reporting. with those for the current year. During the period, Company completed the sale of "Solco" water tanks business to M/s Maharajah Group of Companies, which was initiated in May 2007 by transfering all assets of the said operation to the buyer. The Profit on disposal is accounted under discontinued operations A final dividend of Rs per share for the Financial Year ended 31st March 2010 was recommended by the Board of Directors which is payable on 9th July 2010 if approved by the shareholders at the Annual General Meeting. Rs.250 mn released by the Government of Sri Lanka due to price adjustments on sale of fertilizer made during the period November 2008 to March 2009 has been accounted under other income. Chemical Industries (Colombo) PLC 8

10 SHAREHOLDER AND INVESTOR INFORMATION As at 31st March Twenty largest shareholders - Ordinary Shares 2010 Name No. of Shares % 1 Paints & General Industries Limited. 38,860, Sri Lanka Insurance Corporation Ltd - Life Fund 4,329, Mr. S K Wickremesinghe 1,553, Bank of Ceylon No. 1 Account 1,185, National Savings Bank 1,015, Bank of Ceylon No. 2 Account 990, Employees Trust Fund Board 972, HSBC International Nominees Ltd - SSBT - Deustche 955, Mr. N K A De Silva 495, HSBC International Nom Ltd - SSBT - Russel Trust 493, Waldock Mackanize Ltd / Mr. K. M. P. Karunaratne 350, Miss G.I.Vasunthara 333, Colombo Fort Investments PLC 315, Dr. H R & Mr. V K Wickremesinghe Custodian 310, Mr.M.Radhakrishnan 303, Seylan Bank Limited / Priyani Dharshini Ratna Gopal 275, Dr. G N Wickramanayake 265, Mrs. D Wickremesinghe 263, Ms. R M Rodrigo 243, Aviva NDB Insurance PLC A/C No , Total 53,752, Twenty largest shareholders - Non-Voting (Class X) Shares 2010 Name No. of Shares % 1 Fast Gain International Limited 777, Questnet Limited 759, Paints & General Industries Limited. 726, E. W. Balasuriya & Co. (Pvt) Ltd 390, Mr. T. L. M. Imtiaz 384, Asian Alliance Insurance PLC - A/C 02 ( Life Fund) 307, Mrs. M. S. E. V. E. A. U. Von Stumm 307, Mr. N. K. A. De Silva 289, Elgin Investments Limited 250, Asian Alliance Insurance PLC - General Fund Account 234, DFCC Bank A/C , Waldock Mackenzie Ltd / Mr. K. Omprasadham 210, A. W. Edwards 190, Waldock Mackenzie Ltd / Ceylinco Shriram 176, Alchemy Heavy Metals (Pvt) Ltd 175, Mr. Y. H. Abdulhussein 175, Mr. K. C. Vignarajah 172, Employees Trust Fund Board 161, Mr. C. P. De Silva 160, Mr. L De Mel 154, Total 6,222, Chemical Industries (Colombo) PLC 9

11 Shareholder and Investor Information 3. Shares held by Public Type No.of Shares % Ordinary Shares 33,801, Non Voting (Class - X) Shares 21,028, Shares held by Director's together with the members of their families. Type No.of Shares % Ordinary Shares 238, Non-Voting (Class X) Shares 115, Shares held by the Parent Company Type No.of Shares % Ordinary Shares 38,860, Non-Voting (Class X) Shares 726, Directors' shareholding together with the members of their families. Ordinary shares Non-Voting (Class X) As at 31st March B R L Fernando - Chairman 237, ,942 39,765 39,765 S P S Ranatunga - Managing Director / CEO ,950 22,950 S H Amarasekera E F G Amerasinghe R S Captain P S C Fernando ,210 36,210 M P Jayawardena ,200 16,200 Prof. P W M B B Marambe J S Mather Total 238, , , , Share Trading Ordinary shares Non-Voting (Class X) No of shares traded 6,331,700 6,912,600 No. of transactions 2,351 3,106 Value of shares traded (Rs.) 428,466, ,786,450 Chemical Industries (Colombo) PLC 10