Shalimar Malay : Interim financial statements for the quarter ended 30th September 2022

Shalimar (Malay) PLC

Summarised Financial Report

for the Six months ended

30th September 2022

SHALIMAR (MALAY) PLC

Review of operations for the period ended 30th September 2022

The minority equity investments the Company holds in Shalimar Developments Sdn. Bhd. (SDSB) is the main business of the Company. SDSB's investee company carries out palm oil plantation operations in Indonesia.

The investee company continues to take measures to ensure that its business operations are carried out efficiently amidst several market and economic challenges. The Crude Palm Oil (CPO) prices which saw an upward trend in the fourth quarter of the previous financial year, experienced a significant and sudden reversal in prices during the latter part of the first half under review. This was due to multiple reasons, including a global price correction of commodities, fears of a global recession, the duty on CPO sales introduced by the Indonesian government and higher build-up of stocks in the Indonesian domestic market. In the backdrop of these challenges, the investee Company is focused in managing its resources to ensure that it is able to preserve the long term value of the investment to its stakeholders.

The only source of income for the period is the interest income earned from the Company's short-term deposits in Sri Lanka. Accordingly, the Company recorded an after tax Loss of Rs. 0.4 Mn from its operations during the period under review; compared to a profit of Rs. 20.4 Mn recorded in the corresponding period of the previous financial year.

Minimum Public Holding

As previously informed, the Company is not in compliance with the minimum public holding requirements in relation to a Company Listed on the Main Board of the Colombo Stock Exchange (CSE) as per Rule 7.14.1 (a) of the Listing Rules of CSE, due to which the Company was transferred to the 'Watch List' of the CSE in terms of Rule 7.14.2 (b) of the previous Listing Rules of the CSE with effect from 2nd July 2018.

However, the CSE via their Circular No. 03/2019 dated 3rd October 2019 amended the Listing Rules on enforcement actions applicable for non-compliance with minimum public holding requirements with effect from 12th September 2019. Accordingly, in terms of Rule 7.14.2 of the Listing Rules of the CSE, the company was transferred to the Second Board with effect from 15th November 2019.

We wish to highlight that the objective of the voluntary offer made to all shareholders on 17th March 2011 was to acquire the entire minority shareholding as a step towards the consolidation of the oil palm plantation business. The offer documents also mentioned that upon completion of the voluntary offer, the rationale for remaining listed will be evaluated. Since the voluntary offer did not result in the acquisition of the entire minority shareholding, the Company continued to remain listed.

Taking into consideration that a voluntary offer had been made and also considering that there is no requirement for additional capital infusion to the Company and resultantly, there being no plans for issuing of new shares nor a dilution by the majority shareholder and as previously communicated to shareholders through market disclosures and Annual Reports and in terms of the revised Listing Rules, we will report the proposed course of action.

Agro Harapan Lestari (Pvt) Ltd

Managers

04th November 2022

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SHALIMAR (MALAY) PLC

Statement of Profit or Loss

	Quarter ended		Six Months ended
(All figures in Sri Lankan Rupees '000)	30th September	Change	30th September	Change
	2022	2021		2022	2021
			%			%
Dividend income	-	21,356	-100%	-	21,356	-100%
Interest income	399	(465)	-186%	548	62	784%
Administrative expenses	(450)	(566)	-20%	(967)	(1,050)	-8%
Profit / (loss) before tax for the period	(51)	20,325	-100%	(419)	20,368	-102%
Income tax expense	-	-	-	-	-	-
Profit / (loss) for the period	(51)	20,325	-100%	(419)	20,368	-102%
Earnings Per Share (Rs.)	(0.01)	3.77		(0.08)	3.77
Statement of comprehensive income	Quarter ended		Six Months ended
	30th September	Change	30th September	Change
	2022	2021		2022	2021
			%			%
Profit/ (Loss) for the period	(51)	20,325	-100%	(419)	20,368	-102%
Other Comprehensive Income for the period, net of	-	-	-	-	-	-
tax
Total Comprehensive Income/ (Expenses) for the	(51)	20,325	-100%	(419)	20,368	-102%
period, net of tax

Changes represent the percentage change in current period's results compared to corresponding period of last year. Figures in brackets indicate deductions/negative changes.

The above figures are subject to audit.

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SHALIMAR (MALAY) PLC

Statement of financial position

(All figures in Sri Lankan Rupees '000)
		As at	As at
		30.09.2022	31.03.2022
ASSETS
Non-Current Assets
Property, Plant and Equipment		220	311
Non-current financial assets	(Note 3 )	10,486,435	10,486,435
Total Non- Current Assets		10,486,655	10,486,746
Current Assets
Advances and Prepayments		151	438
Income tax receivable		764	764
Short term investments		-	8,286
Cash and cash equivalents		11,151	3,000
Total Current Assets		12,066	12,488
Total Assets		10,498,721	10,499,234
EQUITY AND LIABILITIES
Equity
Stated capital	(Note 6)	69,401	69,401
Retained earnings		34,473	34,892
Other reserves		10,394,601	10,394,601
Total Shareholders' Funds		10,498,475	10,498,894
Current Liabilities
Provisions and Accrued Expenses		230	324
Unclaimed dividend		16	16
Total Current Liabilities		246	340
Total Liabilities		246	340
Total Equity and Liabilities		10,498,721	10,499,234
Net Asset per share (Rs.)		1,944.94	1,945.02

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

(Sgd.)

Aneesh Dudeja

President / Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved & signed for and on behalf of the Managers, Approved & signed for and on behalf of the Board,

(Sgd.)	(Sgd.)	(Sgd.)
Rushdi Azeez	H. Selvanathan	M. Selvanathan
Director	Chairman	Director
Agro Harapan Lestari (Pvt) Ltd
04th November 2022
The above figures are subject to audit.

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SHALIMAR (MALAY) PLC Statement of Changes in Equity (All figures in Sri Lankan Rupees '000)

Balance as at 1st April 2021

Profit for the year

Other comprehensive income for the year

Total comprehensive income for the year

Interim Dividend -2021/22

Balance as at 31st March 2022

Balance as at 1st April 2021 Profit for the period

Other comprehensive income for the period Total comprehensive income for the period Interim Dividend -2021/22

Balance as at 30th September 2021

Balance as at 1st April 2022 Profit for the period

Other comprehensive income for the period Total comprehensive income for the period Balance as at 30th September 2022

Figures in brackets indicate deductions/negative changes

The above figures are subject to audit.

		Fair Value	Retained	Total
	Stated Capital	Shareholders'
	Reserve	Earnings
		Funds
69,401	6,804,301	63,289	6,936,991
-	-	19,644	19,644
	-	3,590,300	-	3,590,300
-	3,590,300	19,644	3,609,944
-	-	(48,041)	(48,041)
	69,401	10,394,601	34,892	10,498,894
		Fair Value	Retained	Total
	Stated Capital	Shareholders'
	Reserve	Earnings
		Funds
69,401	6,804,301	63,289	6,936,991
-	-	20,368	20,368
	-	-	-	-
-	-	20,368	20,368
-	-	(48,041)	(48,041)
	69,401	6,804,301	35,616	6,909,318
	Stated	Fair Value	Retained	Total
	Shareholders
	Capital	Reserve	Earnings
	' Funds
69,401	10,394,601	34,892	10,498,894
-	-	(419)	(419)
	-	-	-	-
	-	-	(419)	(419)
69,401	10,394,601	34,473	10,498,475

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