Kahawatte Plantations : Interim Financial Statements for the Year Ended 31st December 2022

Kahawatte Plantations PLC

Interim Financial Statements

Year ended 31st December 2022

KAHAWATTE PLANTATIONS PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		Quarter Ended			Year Ended
	Unaudited	Unaudited		Unaudited	Audited
	31.12.2022	31.12.2021	Change +/(-)	31.12.2022	31.12.2021	Change +/(-)
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Revenue	1,340,120	916,601	423,519	6,261,316	4,267,216	1,994,100
Cost of Sales	(1,422,008)	(1,035,844)	(386,164)	(5,406,108)	(4,210,913)	(1,195,195)
Gross Profit /(Loss)	(81,888)	(119,243)	37,355	855,208	56,303	798,905
Other Income	19,690	34,648	(14,958)	139,567	75,399	64,168
Fair Value Gain on Biological Assets	138,532	92,290	46,242	138,532	92,290	46,242
Administrative Expenses	(63,974)	(49,473)	(14,501)	(178,614)	(134,652)	(43,962)
Management Fee	-	-	-	-	-	-
Profit/(Loss) From Operating Activities	12,360	(41,778)	54,138	954,693	89,340	865,353
Finance Costs	(129,417)	(50,402)	(79,015)	(397,770)	(183,806)	(213,964)
Profit/(Loss) before Taxation	(117,057)	(92,180)	(24,877)	556,923	(94,466)	651,389
Income Tax Expense	(244,138)	(11,732)	(232,406)	(248,573)	(11,732)	(236,841)
Profit/(Loss) for the period	(361,195)	(103,912)	(257,283)	308,350	(106,198)	414,548
Other Comprehensive Income
Items that will not be Reclassified to Profit or Loss
Actuarial Gain / (Loss) on retirement Benefit obligation	17,532	119,134	(101,602)	17,532	119,134	(101,602)
Deferred tax charge on Retirement Benefit Obligation	(5,259)	(12,509)	7,250	(5,259)	(12,509)	7,250
Surplus on Revaluation of Plant & Machinery.	174,732	-	174,732	174,732	-	174,732
Deferred tax charge on Surplus on Revaluation of Plant & Mach.	(52,420)	-	(52,420)	(52,420)	-	(52,420)
Charge from Deferred Tax Effective Rate change on,
Brought Forward Gross Revaluation Reserve	(60,848)	10,921	(71,769)	(60,848)	10,921	(71,769)
Total Comprehensive Income/(expense) for the Period	(287,458)	13,634	(301,092)	382,087	11,348	370,739
Basic Earnings / (Loss) Per Share (Rs.)	(3.63)	(1.05)	(2.6)	3.10	(1.07)	4.17

KAHAWATTE PLANTATIONS PLC

STATEMENT OF CHANGES IN EQUITY

	Stated	Revaluation	Accumulated	Total
	Capital	Reserve	Profit/(Loss)
	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 1st January 2022	1,698,952	268,356	(832,547)	1,134,761
Net Profit for the Period	-	-	(106,198)	(106,198)
Other Comprehensive Income/(Expense)
Actuarial Gain on Defined Benefit Obligation, Net of Tax	-	-	106,625	106,625
Change on Gross Revaluation Reserve		10,921	-	10,921
Balance as at 31st December 2021	1,698,952	279,277	(832,120)	1,146,109
Balance as at 1st January 2022	1,698,952	279,277	(832,120)	1,146,109
Net Profit for the Period	-	-	308,350	308,350
Other Comprehensive Income/(Expense)
Actuarial Gain on Defined Benefit Obligation, Net of Tax	-	-	12,273	12,273
Surplus on Revaluation of Plant & Machinery, Net of Tax		122,312		122,312
Charge from Deferred Tax Effective Rate change on Brought Forward Gross Revaluation Reserve		(60,848)		(60,848)
Balance as at 31st December 2022	1,698,952	340,741	(511,497)	1,528,196

KAHAWATTE PLANTATIONS PLC

STATEMENT OF FINANCIAL POSITION

	Unaudited	Audited
As at	31.12.2022	31.12.2021
	Rs.'000	Rs.'000
ASSETS
Non Current Assets
Leasehold Right to Bare Land of JEDB/SLSPC Estates	152,531	148,501
Immovable Leased Assets of JEDB/SLSPC Estates (Other than Bare Land)	27,317	36,198
Property, Plant & Equipment	1,297,843	1,011,135
Biological Assets	3,326,254	3,316,880
	4,803,945	4,512,714
Current Assets
Produce on Bearer Biological Assets	8,475	8,475
Inventories	781,812	416,319
Trade and Other Receivable	109,591	113,511
Amount Due from Related Parties	9,319	4,591
Cash and Bank Balance	36,599	29,065
	945,796	571,961
TOTAL ASSETS	5,749,741	5,084,675
EQUITY AND LIABILITIES
Capital and Reserves
Stated Capital	1,698,952	1,698,952
Revaluation Reserve	340,741	279,277
Retained Earnings	(511,497)	(832,120)
Total Equity	1,528,196	1,146,109
Non Current Liabilities
Deferred Income	273,596	288,448
Deferred Tax Liability	508,037	140,795
Interest Bearing Loans and Borrowings	379,735	576,049
Retiring Benefit Obligations	516,796	518,467
Net Liability to Lessor of JEDB/SLSPC Estates	144,070	133,491
	1,822,234	1,657,250
Current Liabilities
Interest Bearing Loans and Borrowings	715,579	765,777
Net Liability to Lessor of JEDB/SLSPC Estates	813	813
Trade and Other Payable	717,160	621,600
Amounts due to Related Parties	160,007	98,274
Bank Overdraft	805,752	794,852
	2,399,311	2,281,316
Total Liabilities	4,221,545	3,938,566
Total Equity and Liabilities	5,749,741	5,084,675

Net Assets Per Share (Rs.)

15.37

11.53

It is certified that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 07 of 2007.

(Sgd.)

sgd.

Vinesh Athukorala

Chief Financial Officer

Signed on behalf of the Board of Directors of Kahawatte Plantations PLC

(Sgd.)	(Sgd.)
sgd.	sgd.
Minette D A Perera	Himendra S Ranaweera
Director	Director
28th February 2023

KAHAWATTE PLANTATIONS PLC

STATEMENT OF CASH FLOWS

For the Period ended	Unaudited	Audited
	31.12.2022	31.12.2021
	Rs.'000	Rs.'000
Cash Flow from Operating Activities
Net Profit/(Loss) Before Taxation	556,923	(94,466)
Adjustment For
Depreciation/Amortization	226,591	220,791
Write-Offs- (Nurseries/Immature Plantations)	90,736	1,861
ESC Write-offs	3,466	12,955
(Profit)/ Loss from Disposal of Property Plant and Equipment	-	(2,494)
Interest Expenses	397,770	183,806
Provision for Retirement Benefit Obligations	106,957	95,799
Fair Value Gain on Biological Assets	(138,532)	(92,290)
Change in Consumable Biological Assets Due to Harvest	18,856	11,242
Amortization of Grants	(16,217)	(15,763)
Operating Profit/(Loss) before Working Capital Changes	1,246,550	321,441
(Increase) / Decrease in Inventories	(365,493)	26,320
(Increase) / Decrease in Trade and Other Receivable	(5,181)	(6,421)
(Increase) / Decrease in Amounts Due from Related Companies	(4,728)	3,019
Increase / (Decrease) in Trade and Other Payable	77,562	33,679
Increase / (Decrease) in Amount Due to Related Companies	5,668	(14,940)
	954,378	363,098
Interest Paid	(350,764)	(163,807)
Payment of Retirement Benefit Obligations	(106,999)	(85,642)
Grants Received	1,365	20,000
Economic Service Charge Paid	-	-
Net Cash (Used In )/ Generated from Operating Activities	497,980	133,649
Cash Flow from Investing Activities
Investment in Immature Bearer/Consumable Biological Assets	(71,301)	(61,171)
Purchase of Property Plant and Equipment	(157,853)	(155,681)
Proceeds from Disposal of Property Plant and Equipment	-	2,494
Net Cash Used In Investing Activities	(229,154)	(214,358)
Cash Flow from Financing Activities
Loan Received	207,012	226,026
Loan Repayments	(451,150)	(114,072)
Lease Rentals Paid to JEDB/SLSPC	(20,033)	(18,618)
Finance Lease Rentals	(8,021)	-
Net Cash (Used In)/ Generated from Financing Activities	(272,192)	93,336
Net Increase / (Decrease) in Cash and Cash Equivalents	(3,366)	12,627
Cash and Cash Equivalents at the Beginning of the Year	(765,787)	(778,414)

Cash and Cash Equivalents at the End of the Period

(769,153)

(765,787)

KAHAWATTE PLANTATIONS PLC

SEGMENTAL INFORMATION

( A) Segment Revenue

	Segment		Quarter Ended			Year Ended
	31.12.2022	31.12.2021	Change +/(-)	31.12.2022	31.12.2021	Change +/(-)
		Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
	Tea	1,212,114	661,312	550,802	5,462,198	3,487,275	1,974,923
	Rubber	108,514	156,616	(48,102)	647,300	591,707	55,593
	Other Crop	19,492	98,673	(79,181)	151,818	188,234	(36,416)
		1,340,120	916,601	423,519	6,261,316	4,267,216	1,994,100
( B)	Segment Cost of Sale
	Segment		Quarter Ended			Year Ended
	31.12.2022	31.12.2021	Change +/(-)	31.12.2022	31.12.2021	Change +/(-)
		Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
	Tea	(1,230,025)	(844,199)	(385,826)	(4,678,275)	(3,589,464)	(1,088,811)
	Rubber	(171,148)	(151,895)	(19,253)	(615,096)	(515,001)	(100,095)
	Other Crop	(20,835)	(39,750)	18,915	(112,737)	(106,448)	(6,289)
		(1,422,008)	(1,035,844)	(386,164)	(5,406,108)	(4,210,913)	(1,195,195)
( C)	Segment Results
	Segment		Quarter Ended			Year Ended
	31.12.2022	31.12.2021	Change +/(-)	31.12.2022	31.12.2021	Change +/(-)
		Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
	Tea	(17,911)	(182,887)	164,976	783,923	(102,189)	886,112
	Rubber	(62,634)	4,721	(67,355)	32,204	76,706	(44,502)
	Other Crop	(1,343)	58,923	(60,266)	39,081	81,786	(42,705)
	Gross Profit	(81,888)	(119,243)	37,355	855,208	56,303	798,905
	Unallocated
	Other Income	19,690	34,648	(14,958)	139,567	75,399	64,168
	Fair Value Gain on Biological Assets	138,532	92,290	46,242	138,532	92,290	46,242
	Administrative Expenses	(63,974)	(49,473)	(14,501)	(178,614)	(134,652)	(43,962)
	Management Fee	-	-	-	-	-	-
	Profit/(Loss) From Operating Activities	12,360	(41,778)	54,138	954,693	89,340	865,353
	Finance Costs	(129,417)	(50,402)	(79,015)	(397,770)	(183,806)	(213,964)
	Profit/(Loss) before Taxation	(117,057)	(92,180)	(24,877)	556,923	(94,466)	651,389