Equity Two : Interim Financials 30 June 2022

Equity Two PLC

A Carson Cumberbatch Company

Interim report for the three months ended 30th June 2022

EQUITY TWO PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (All figures are in Sri Lankan Rupees Thousands)

	Three months ended
		30th June
	2022	2021	Change %
Revenue	34,481	33,277	4
Direct cost	(12,544)	(8,563)	46
	21,937	24,714	(11)
Other income	135	135	-
Administrative and other operating expenses	(3,304)	(1,861)	78
Results from operating activities	18,768	22,988	(18)
Finance income	3,185	1,656	92
Finance costs	(1,006)	(976)	3
Net finance income	2,179	680	220
Profit before taxation	20,947	23,668	(11)
Income tax expense	(4,530)	(4,986)	(9)
Deferred taxation	(849)	(803)	6
Profit for the period	15,568	17,879	(13)
Other comprehensive income / (expense)
Items that will never be reclassified into profit and loss	-	-	-
Actuarial gain / (loss) from valuation of employee benefits
Related tax	-	-	-
Total other comprehensive income / (expense) for the period	-	-	-
Total comprehensive income for the period	15,568	17,879	(13)
Earnings per share (Rs.)	0.50	0.58
Dividend per share (Rs.)	-	-

Change % represents the percentage change in current period's results compared to the comparative period of previous year.

Figures in brackets indicate deductions.

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EQUITY TWO PLC

STATEMENT OF FINANCIAL POSITION

(All figures are in Sri Lankan Rupees Thousands)

		31.03.2022
As at	30.06.2022	(Adjusted)
ASSETS
Non-current assets
Investment properties	1,570,418	1,570,418
Investment in fixed deposits	32,025	-
Current assets
Trade and other receivables	28,492	28,333
Cash and cash equivalents	122,249	76,612
Total assets	1,804,034	1,793,763
EQUITY AND LIABILITIES
Equity
Stated capital	444,092	444,092
Revenue reserves	995,906	980,338
Non-current liabilities
Refundable rental deposits	47,189	46,183
Employee benefits	1,313	1,285
Current liabilities
Trade and other payables	6,124	4,148
Current tax liabilities	11,734	19,965
Total equity and liabilities	1,804,034	1,793,763
	-	-
Net assets per share (Rs.)	46.48	45.97

The Statement of Financial Position as at 30th June 2022 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the period then ended as disclosed in pages 1 to 4 have been drawn up from unaudited financial statements.

I certify that these financial statements are in compliance with the requirements of Companies Act, No. 7 of 2007.

(Sgd).

V.R. Wijesinghe Director - Finance

Carsons Management Services (Private) Limited

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Approved and signed on behalf of the managers,	Approved and signed on behalf of the board,
(Sgd).	(Sgd).	(Sgd).
A.P. Weeratunge	D.C.R. Gunawardena	K.C.N. Fernando
Director	Chairman	Director
Carsons Management Services (Private) Limited

Colombo

10th August 2022

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EQUITY TWO PLC STATEMENT OF CASH FLOWS

(All figures are in Sri Lankan Rupees Thousands)

Three months ended 30th June	2022	2021
Cash flows from operating activities
Profit before taxation	20,947	23,668
Adjustments for:
Finance costs	1,006	976
Finance income	(2,226)	(1,603)
Net change in fair value through profit or loss financial assets	(959)	(53)
Provision for employee benefits	28	29
Amortization of deferred revenue	(925)	(986)
Operating profit before working capital changes	17,871	22,031
(Increase) / decrease in trade and other receivables	(159)	(1,040)
Increase / (decrease) in trade and other payables	2,101	(9,722)
Operating profit after working capital changes	19,813	11,269
Income tax paid	(3,672)	(6,806)
Surcharge tax paid	(9,089)	-
Net cash generated from / (used in) operating activities	7,052	4,463
Cash flows from investing activities
Disposal of / (investment in) fair value through profit or loss financial assets	44,678	-
Withdrawal of / (investment in) fixed deposits	(9,201)	12,885
Interest received	3,233	2,997
Net cash generated from / (used in) investing activities	38,710	15,882
Cash flows from financing activities
Dividend paid	(125)	(72)
Net cash generated from / (used in) financing activities	(125)	(72)
Net increase / (decrease) in cash and cash equivalents	45,637	20,273
Cash and cash equivalents at the beginning of the period	76,612	6,739
Cash and cash equivalents at the end of the period	122,249	27,012
Statement of cash and cash equivalents
Cash at bank and in hand	97,147	27,012
Placements with banking and financial institutions	25,102	-
Cash and cash equivalents for the cash flow statement purposes	122,249	27,012

Figures in brackets indicate deductions.

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EQUITY TWO PLC

STATEMENT OF CHANGES IN EQUITY

(All figures are in Sri Lankan Rupees Thousands)

	Stated	Capital	Revenue
	capital	reserves	reserves	Total equity
Balance as at 01st April 2022 (Adjusted)	444,092	750	980,338	1,425,180
Profit for the period	-	-	15,568	15,568
Other comprehensive income for the period	-	-	-	-
Total comprehensive income for the period	-	-	15,568	15,568
Balance as at 30th June 2022	444,092	750	995,906	1,440,748
Balance as at 01st April 2021	444,092	750	913,522	1,358,364
Surcharge tax for the year of assessment 2020/21*	-	-	(18,178)	(18,178)
Balance as at 01st April 2021 (Adjusted)	444,092	750	895,344	1,340,186
Profit for the period	-	-	17,879	17,879
Other comprehensive expense for the period	-	-	-	-
Total comprehensive income for the period	-	-	17,879	17,879
Balance as at 30th June 2021 (Adjusted)	444,092	750	913,223	1,358,065

Figures in brackets indicate deductions.

• As per the provisions of Surcharge Tax Act No. 14 of 2022, although the Company did not become liable to pay surcharge tax as a stand-alone entity, the Company was liable for surcharge tax on the basis that the Company is part of the Carson Cumberbatch PLC group, of which the aggregate taxable income exceeded the threshold as stipulated in the aforesaid Act.

Accordingly, the Company was liable for a surcharge tax of Rs. 18,177,642/- out of the taxable income of

Rs. 72,710,566/- pertaining to the year of assessment 2020/21. The Company paid the surcharge tax liability in two equal installments on 18th April 2022 and 18th July 2022.

According to the Act, the surcharge tax shall be deemed to be an expenditure in the financial statements relating to the year of assessment commenced on 1st April 2020. The expense of surcharge tax is accounted in accordance with 'Statement of Alternative Treatment on Accounting for Surcharge Tax levied under the Surcharge Tax Act No. 14 of 2022' issued by the Institute of Chartered Accountants of Sri Lanka on 22nd April 2022.

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