Horana Plantations : Interim Financial Statements as at 31/03/2024

HORANA PLANTATIONS PLC

(Company Number : PQ 126)

INTERIM FINANCIAL STATEMENTS

For the Twelve (12) Months Ended

31-Mar-2024

Registered Office - No.400, Deans Road, P.O.Box 2042, Colombo 10, Sri Lanka

# Tel: [phone] # Facsimile: 011 2627323 # E-mail: [e-mail] # Web: www.horanaplantations.com

Horana Plantations PLC

Interim Financial Statements

For the Twelve (12) Months Ended 31st March 2024

Contents

Page No.

1. Statement of Profit or Loss and Other Comprehensive Income
2. Statement of Financial Position
3. Statement of Changes in Equity
4. Statement of Cash Flows
5. Notes to the Interim Financial Statements
6. Notes to the Interim Financial Statements (Contd…)

Page 1

Horana Plantations PLC

Statement of Profit or Loss and Other Comprehensive Income

For the Twelve (12) Months Ended 31st March 2024

		Tweleve (12) Months Ended		Three (03) Months Ended
		31-Mar		31-Mar	Change		31-Mar		31-Mar
		2024	2023			2024	2023
				(Audited)
		Rs' 000		Rs' 000	%		Rs' 000		Rs' 000
	Revenue	3,385,735	3,794,035	(10.76)		984,573	922,673
	Cost of Sales	(2,732,480)	(2,559,346)	(6.76)		(818,231)	(645,051)
	Gross Profit	653,255	1,234,689	(47.09)		166,342	277,622
	Other Operating Income	7,903	7,782	1.56		2,063	1,918
	Change in Fair Value of Biological Assets	34,320	(4,377)	884.01		24,818	(14,061)
	Administrative Expenses	(234,375)	(234,621)	0.10		(50,382)	(64,114)
	Management Fees	-	(16,963)	100.00		-	(4,312)
	Profit from Operations	461,103	986,510	(53.26)		142,841	197,052
	Finance Income	3,926	5,097	(22.97)		792	1,270
	Finance Expense	(238,546)	(334,515)	28.69		(47,366)	(84,280)
	Profit before Taxation	226,483	657,092	(65.53)		96,267	114,042
	Tax Expense	(121,978)	(487,030)	74.95		(77,238)	(53,522)
	Profit for the period	104,505	170,062	(38.55)		19,030	60,520
	Other Comprehensive Income:-
	Actuarial Loss on Retirement Benefit	(125,446)	(51,759)	(142.37)		(125,446)	(51,759)
	Obligations
	Tax effect on Other Comprehensive Income	37,634	15,527	142.37		37,634	15,527
	Other Comprehensive Loss for the period,	(87,812)	(36,232)	(142.36)		(87,812)	(36,232)
	net of Tax
	Total Comprehensive Income/Expense for	16,693	133,830			(68,783)	24,288
	the period	(87.53)
	Basic Earnings per Share (Rs.)	4.18	6.80	(38.55)		0.76	2.42
	Dividend per Share (Rs.)	2.65	-	-		-	-

						Page 2
		Horana Plantations PLC
		Statement of Financial Position
		As at 31st March 2024
			As at
			31-Mar	31-Mar
			2024			2023
						(Audited)
			Rs' 000	Rs' 000
		ASSETS
		Non-Current Assets
		Right of Use Assets	248,883			184,743
		Bearer Biological Assets	2,515,934			2,296,046
		Consumable Biological Assets	594,745			591,546
		Property, Plant & Equipment	579,843			552,281
		Total Non-Current Assets	3,939,405			3,624,615
		Current Assets
		Non-Harvested Produce on Bearer Biological Assets	9,651			9,847
		Inventories	524,435			476,386
		Trade and Other Receivables	178,057			197,560
		Related Company Receivables	1,719			9,384
		Cash and Cash Equivalents	47,122			37,379
		Total Current Assets	760,984			730,556
		Total Assets	4,700,389			4,355,171
		EQUITY & LIABILITIES
		Equity
		Stated Capital	250,000			250,000
		Retained Earnings	630,396			679,954
		Total Equity	880,396			929,954
		Non-Current Liabilities
		Interest Bearing Loans & Borrowings	1,098,862			745,939
		Lease Liabilities	255,867			183,991
		Retirement Benefit Obligations	562,419			458,833
		Deferred Income	99,172			106,475
		Deferred Tax Liability	667,370			583,027
		Total Non-Current Liabilities	2,683,690			2,078,265
		Current Liabilities
		Trade and Other Payables	328,552			361,677
		Related Companies Payables	24,377			32,930
		Interest Bearing Loans & Borrowings	447,077			444,875
		Lease Liabilities	12,752			10,467
		Short Term Borrowings	323,544			497,003
		Total Current Liabilities	1,136,302			1,346,952
		Total Liabilities	3,819,993			3,425,217
		Total Equity & Liabilities	4,700,389			4,355,171
		Net Assets per Ordinary Share (Rs.)	35.22			37.20

The Statement of Financial Position as at 31st March 2024 and the Statement of Profit or Loss, Statement of Comprehensive

Income , the Statement of Changes in Equity and Cash Flow Statement for the period ended 31st March 2024 are drawn up from the unaudited Financial Statements of the Company, provide the information required by the Colombo Stock Exchange.

It is certified that these Financial Statements have been prepared in compliance with the requirements of the Companies Act No.7 of 2007.

(Sgd) Ajith Nissanka

General Manager - Finance

Signed for and on behalf of the Board of Directors of Horana Plantations PLC:-

(Sgd) A.M.Pandithage	(Sgd.) Dr. Roshan Rajadurai
Chairman	Managing Director
13th May 2024

Page 3

Horana Plantations PLC

Statement of Changes in Equity

For the Twelve (12) Months Ended 31st March 2024

(Stated Capital comprised - 25 Million Ordinary	Stated	Retained	Total
Shares and 1 Golden Share)	Capital	Earnings
	Rs'000	Rs'000	Rs'000
Tweleve (12) Months Ended 31st March 2023:-
Balance as at 1st April 2022	250,000	546,124	796,124
Comprehensive Income for the period
Profit for the period	-	170,062	170,062
Other Comprehensive Expense for the period	-	(36,232)	(36,232)
Total Comprehensive Income for the period	-	133,830	133,830
Balance as at 31st March 2023	250,000	679,954	929,954
Tweleve (12) Months Ended 31st March 2024:-
Balance as at 1st April 2023	250,000	679,954	929,954
Comprehensive Income for the period
Profit for the period	-	104,505	104,505
Other Comprehensive Expense for the period	-	(87,812)	(87,812)
Dividend	-	(66,250)	(66,250)
Total Comprehensive Expense for the period	-	(49,557)	(49,557)
Balance as at 31st March 2024	250,000	630,396	880,396

Page 4

Horana Plantations PLC

Statement of Cash Flows

For the Twelve (12) Months Ended 31st March 2024

				Twelve (12) Months Ended
				31-Mar			31-Mar
				2024	2023
							(Audited)
				Rs' 000			Rs' 000
	Cash Flows from Operating Activities
	Profit before Taxation	226,483	657,092
	Adjustments for non-cash items :
				(15,908)
	Change in Fair	Value of Biological Assets		8,042
	Depreciation and Amortization	208,590	189,200
	Provision for Retirement Benefit Obligations	113,764	101,037
	(Reversal)/Provision for Obsolete Inventories	(393)	6,776
	Provision for Impairment of Trade & Other Receivables	601	4,959
	Finance Expenses	203,881	307,821
	Finance Income	(3,926)	(5,097)
	Lease Interest	34,666	26,787
	Profit on Disposal of Property, Plant & Equipment	-	(111)
	Amortization of Capital Grants	(7,803)	(7,671)
	Field Development/ Other Capital Expenditure Written off	5,385			23,707
	Operating Profit before Working Capital Changes	765,339	1,312,542
	Increase in Inventories	(37,810)	(124,636)
	Decrease/(Increase) in Trade & Other Receivable	19,047	(64,885)
	Decrease/(Increase) in Related Companies Receivables	7,665	(3,214)
	Decrease in Related Companies Payables	(12,888)	(22,966)
	(Decrease)/Increase in Trade & Other Payables	(27,565)			61,183
	Cash Generated from Operations	713,787	1,158,025
	Interest paid	(207,378)	(302,742)
	Payments made for Retirement Benefit Obligations	(143,350)	(173,706)
	Payment of Tax	(145)			(14)
	Net Cash Inflow from Operating Activities	362,914	681,563
	Cash Flows from Investing Activities
	Purchase/Construction of Property, Plant and Equipment	(93,128)	(153,658)
	Expenditure Incurred on Biological Assets	(341,533)	(282,555)
	Capital Grants and Subsidies received	500	821
	Proceeds on Disposal of Property, Plant & Equipment	-	187
	Finance Income	3,926			5,097
	Net Cash Outflow from Investing Activities	(430,235)	(430,107)
	Cash Flows from Financing Activities
	Receipt of Project Loans	800,000	275,000
	Repayment of Project Loans	(386,534)	(373,859)
	Receipt of Other Term Loans	150,000	198,303
	Repayment of Other Term Loans	(208,341)	(289,063)
	Payment of Lease Rentals	(48,351)	(37,566)
	Payment of Dividend	(56,250)			-
	Net Cash Inflows/(used in) from Financing Activities	250,523		(227,186)
	Net Increase in Cash and Cash Equivalents during the period	183,202	24,270
	Cash and Cash Equivalents at the beginning of the period	(459,624)	(483,894)
	Cash and Cash Equivalents at the end of the period	(276,422)	(459,624)

									Page 5
		Horana Plantations PLC
		Notes to the Interim Financial Statements
		For the Twelve (12) Months Ended 31st March 2024
1 Segmental Information	Tea	Rubber	Unallocated	Total
		31-Mar	31-Mar	31-Mar	31-Mar	31-Mar	31-Mar	31-Mar	31-Mar
		2024	2023	2024	2023	2024	2023	2024	2023
		Rs' 000	Rs' 000	Rs' 000	Rs' 000	Rs' 000	Rs' 000	Rs' 000	Rs' 000
Segmental Revenue:-
Main Sectors		2,556,632	2,912,192	513,318	557,620	-	-	3,069,950	3,469,812
Other Operating Revenue	-	-	-	-	315,785	324,223	315,785	324,223
Segmental Revenue	2,556,632	2,912,192	513,318 557,620 315,785 324,223 3,385,735	3,794,035
Cost of Sales		(2,095,199)	(1,931,535)	(439,523) (454,418) (197,758) (173,392) (2,732,480) (2,559,346)
Segmental Gross Profit	461,433	980,656	73,794	103,202	118,028	150,831	653,255	1,234,689
Other Operating Income					7,903	7,782	7,903	7,782
Change in Fair Value of Biological Assets				34,320	(4,377)	34,320	(4,377)
Administrative Expenses					(234,375)	(234,621)	(234,375)	(234,621)
Management Fees					-	(16,963)	-	(16,963)
Profit from Operations							461,103	986,510
Finance Income					3,926	5,097	3,926	5,097
Finance Expense					(238,546)	(334,515)	(238,546)	(334,515)
Profit before Taxation							226,483	657,092
Tax Expense						(121,978)	(487,030)	(121,978)	(487,030)
Profit for the period							104,505	170,062
Other Comprehensive Income/(Expense):
Actuarial Loss on Retirement Benefit Obligations				(125,446)	(51,759)	(125,446)	(51,759)
Tax expenses on Other Comprehensive Income				37,634	15,527	37,634	15,527
Other Comprehensive Expense for the period after tax					(87,812)	(36,232)
Total Comprehensive Income for the period						16,693	133,830
2 Market Prices (per Share)
Year Ended				Quarter Ended 31st March
31-Mar-23			2024	2023	Variance
Rs.Cts.			Rs.Cts.	Date	Rs.Cts.	Date	Rs.Cts.
71.90	Highest		43.00	12-Mar-24	71.90	10-Jan-22	(28.90)
48.00	Lowest		37.00	5-Mar-23	48.00	15-Mar-22	(11.00)
52.50	Last Traded Price	39.40	28-Mar-23	52.50	31-Mar-23	(13.10)

- Public holding percentage as at 31st March 2024 was 48.56 %

- Number of shareholders representing the above percentage was 10,565

- The float adjusted market capitalization as at 31st March 2024 was Rs.479,530,019.18

- The float adjusted market capitalization of the Company falls under "Option 5" of Section 7.14.1(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.

3 Basis of Preparation

3.1The interim financial statements are unaudited have been prepared in accordance with Sri Lanka Accounting Standards-LKAS 34 Interim Financial Reporting, and has applied the same accounting policies and methods of computation which have been adopted in the previous year.

3.2Comparative figures have been re-classified to conform with the current year's presentation.

3.3There are no changes in contingent liabilities of material nature since the last annual reporting date.

3.4No material events have occurred subsequent to the Reporting Period, which require adjustments to or disclosures in the Financial Statements.

							Page 6
		Horana Plantations PLC
		Notes to the Interim Financial Statements (Contd…..)
		For the Twelve (12) Months Ended 31st March 2024
		Name		No. of Shares			Percentage
				(%)
4	Twenty (20) Major Shareholders as at 31st March 2024
1	Hayleys Plantation Services (Private) Limited		12,750,000	51.000
2	Sri Lanka Insurance Corporation Ltd-Life Fund		1,565,124	6.260
3	Sri Lanka Insurance Corporation Ltd-General Fund		1,385,434	5.542
4	Hatton National Bank PLC/Almas Holdings (Pvt) Ltd		472,901	1.892
5	Bank Of Ceylon No. 1 Account		465,700	1.863
6	Commercial Bank of Ceylon PLC/Andaradeniya Estate (Pvt) Ltd	450,813	1.803
7	Mr G.M. Weerakoon		340,172	1.361
8	Hatton National Bank PLC/Mushtaq Mohamed Fuad		301,061	1.204
9	Dr. Dilesh Jayanntha		190,000	0.760
10	Mr K.C.Vignarajah		186,255	0.745
11	Almas Holdings (Pvt) Ltd		174,299	0.697
12	Sezeka Limited		170,053	0.680
13	Mr A.J.M. Jinadasa		135,000	0.540
14	People's Leasing & Finance PLC/Hi Line Towers (Pvt) Ltd		131,979	0.528
15	Mr H.A.A.H. Algharabally		131,500	0.526
16	Merchant Bank Of Sri Lanka Finanace PLC/D.S. Nakandala		116,347	0.465
17	Hatton National Bank PLC/Mr.A.Rajaratnam		110,108	0.440
18	Mr S.C.Gangegoda		109,350	0.437
19	Mr P.F. Nandasiri		103,165	0.413
20	Mr A.A.Page		100,000	0.400
		Mr D.K.T. Pathirage		100,000		0.400
		Sub-Total		19,489,261	77.957
		Others		5,510,740	22.043
		Total		25,000,001			100.000
5 Directors' Shareholdings as at 31st March 2024
1	Mr. A. M. Pandithage		-	-
2	Dr. Roshan Rajadurai		1,000	0.004
3	Mr. Johann A. Rodrigo		-	-
4	Mr. A. N. Wickremasinghe		-	-
5	Mr. S. C. Ganegoda		109,350	0.437
6	Mr. K. D. G. Gunaratne		-	-
7	Mr. S. M. Liyanage		-	-
8	Mr. T. A. B. Speldewinde		-	-
9	Mr. M.C.B. Talwatte (appointed on 03.01.2024)		-		-
		Total		110,350			0.441
6 Public Holding Percentage as at 31st March 2024
		Holding of 10% or more:
		Hayleys Plantation Services (Private) Limited		12,750,000	51.000
		Directors' Shareholding:
		Dr. Roshan Rajadurai		1,000	0.004
		Mr. S. C. Ganegoda		109,350	0.437
		Sub-Total		12,860,350	51.441
		No.of Shareholders
		Public Holding	10,565	12,139,651	48.559
		Total Stated Capital		25,000,001	100.000