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Transcript of JKH Interim Sep 2013
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I N T E R I M C O N D E N S E D F I N A N C I A L S T A T E M E N T S S I X M O N T H S E N D E D 3 0 T H S E P T E M B E R 2 0 1 3
JOHN KEELLS
HOLDINGS PLC
Ke e p ing ou r e ye on th e n ex t l e v e l
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Ke e p ing our e ye on t he nex t l e v e l
Chairmans Message 1
Consolidated Income Statement 3
Consolidated Statement of
Comprehensive Income 4
Consolidated Statement ofFinancial Position 5
Consolidated Statement of
Cash Flow 6
Consolidated Statement of
Changes in Equity 8
Company Income Statement 9
Company Statement of
Comprehensive Income 10Company Statement of Financial
Position 11
Company Statement of Cash Flow 12
Company Statement of
Changes in Equity 13
Operating Segment Information 14
Notes to the Interim Condensed
Financial Statements 18
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Chairmans Message Financial Information
CHAIRMANS MESSAGE
Dear Stakeholder,
The revenues at Rs.21.08 billion and Rs.41.09 billion
in the second quarter and the first half of the financial
year 2013/2014 were 2 per cent and 1 per cent above
the Rs. 20.68 billion and Rs. 40.70 billion recorded in
the corresponding periods in the previous year.
The Group profit before tax (PBT) at Rs.2.65 billion in
the second quarter of the financial year 2013/14 was a
decrease of 12 per cent on the Rs.2.99 billion recorded
in the corresponding period in the previous year. The
cumulative PBT for the first half of the financial year
2013/14 at Rs.4.85 billion was a decrease of 10 per
cent on the PBT of Rs.5.39 billion recorded in the sameperiod in the previous year.
The profit attributable to equity holders for the second
quarter at Rs.2.06 billion reflects a decrease of 15
per cent on the previous year while the first half
performance at Rs. 3.65 billion reflects a decrease of
10 per cent on the corresponding period in the previous
year.
The Group incurred a non-cash charge of Rs.72 million
during the quarter for Employee Share Option Plans(ESOPs) under the Sri Lanka Accounting Standards;
SLFRS 2 on Share Based Payments and a non-
recurring impairment charge of approximately Rs.141
million for the quarter on account of the demolition of
buildings at Glennie Street and Justice Akbar Mawatha.
The Waterfront Project, an integrated resort which I
referred to in my previous message, is still to receive
all its approvals. The Project which had received
Cabinet approval under the Strategic Development
Projects Act was presented to Parliament and wassubsequently withdrawn by the Government. However,
we are confident that the requisite approvals will be
forthcoming shortly.
Your Company received shareholder approval for
investment in the Waterfront Project as a Major
Transaction under the Companies Act No 7 of 2007.
The Company also announced a Rights Issue of 2
shares for every 13 shares held at Rs.175/- per share
with attached warrants. I am pleased to advise you that
the issue was oversubscribed, affirming the supportand trust you have placed in your Company. The
Rs. 23.10 billion raised via the Rights will be utilised
to fund the Companys equity contribution into the
Waterfront Project Company.
From a macroeconomic perspective, in spite of the
reduction in interest rates and continued stable
inflation, we are yet to see the full impact of these
benefits flow through to the real economy. As a result,we continue to witness relatively dampened consumer
sentiment and challenging macroeconomic conditions.
The uncertainty created through the events in the
global economy has compounded the volatility faced
by emerging markets. We however remain confident
of the future considering the strong fundamentals of
the Group which will enable us to weather periods of
uncertainty.
TransportationThe Transportation industry group PBT of Rs.745 million
in the second quarter of 2013/14 was a decrease of 27
per cent compared to the corresponding quarter of the
previous financial year [2012/13 Q2: Rs.1.02 billion].
The decline in PBT is mainly attributable to the lower
contribution from the ports and bunkering businesses
on the back of lower volumes and margins although
container throughput over Colombo has remained flat
as against the previous year. Although the drop in the
ports business was the result of a recent re-alignment
of some services, the overall outlook remains stablewith volumes over Colombo expected to grow strongly
in the medium term.
LeisureThe Leisure industry group PBT of Rs.1.14 billion in the
second quarter of 2013/14 was an increase of 20 per
cent compared to the second quarter of the previous
financial year [2012/13 Q2: Rs.945 million] due to both
the Sri Lankan and Maldivian Resorts performing better
than the previous year. The performance of City hotelsand Destination Management remained in line with
expectations.
PropertyThe Property industry group recorded a loss before tax
of Rs. 45 million for the second quarter compared to a
loss of Rs. 258 million recorded in the corresponding
period of the previous year. Results for the second
quarter of 2013/14 include a non-recurring charge
of Rs.152 million on account of the demolition of
property, plant and equipment located at the Glennie
Street site which will be used for the development
of the Waterfront Project. Revenue recognition on
7th Sense, of which 50 per cent has been sold off
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PROGRESSIVE
2 l JOHN KEELLS HOLDINGS PLC l www.keells.com
CHAIRMANS MESSAGE
plan, commenced during the quarter and contributed
towards the growth in revenue. Both 7th Sense and
OnThree20 are progressing as per schedule.
Consumer Foods and RetailThe Consumer Foods and Retail industry group PBT of
Rs.253 million in the second quarter of 2013/14 was
a decrease of 12 per cent over the second quarter
of the previous financial year [2012/13 Q2: Rs.288
million]. The soft drinks volumes fell during the quarter
under review on the back of an overall reduction in
market volumes. However, the frozen confectionary
segment registered a year on year increase in profits
during the quarter. An enhanced market share andimproving margins at Keells Food Products resulted in
an improved performance. The retail business improved
its financial performance on the back of same store
sales growth.
Financial ServicesThe Financial Services industry group PBT of Rs.305
million in the second quarter of 2013/14 was a
decrease of 6 per cent over the second quarter of the
previous financial year [2012/13 Q2: Rs.323 million].
The reduction in PBT recorded by the banking andstockbroking businesses was partially compensated
for by the higher PBT generated by the insurance
business. The primary reason for the reduction in the
performance of the banking business was due to the
continued slow loan growth rates coupled with the non-
recurring costs in relation to the implementation of its
positioning strategy.
Information Technology
The Information Technology industry group PBT ofRs.43 million in the second quarter of 2013/14 was
a decrease of 24 per cent over the second quarter
of the previous financial year [2012/13 Q2: Rs.56
million], mainly on account of the decrease in profits
of the office automation business due to increased
costs arising from exchange rate fluctuations, despite
the increase in overall revenue. The Business Process
Outsourcing operation in India witnessed growth in
revenue and as a result bettered its profitability.
Other, including Plantation ServicesOther, comprising of Plantation Services and the
Corporate Centre, recorded a PBT of Rs.209 million
for the second quarter of the financial year 2013/14
[2012/13 Q2: Rs. 620 million]. The higher PBT in the
previous financial year was on account of one-off gains
from the disposal of Quattro FPO Solutions and the
partial divestment of the freight forwarding business.
Sustainability InitiativesThe Groups environmental sustainability indicators
recorded quarter on quarter increases on the back of
increased activity in the Resorts sector compared to
the corresponding period in the previous year, with
the overall carbon footprint increasing by 9 per cent
to approximately 18,855 MT and water withdrawal
increasing by 7 per cent to an estimated 431,600
cubic meters. The Group maintained the proportionof waste that is recycled, reused and recovered at
approximately 42 per cent though the total volume of
waste generated increased. The Groups labour related
sustainability indicators witnessed an improvement
with occupational injuries falling to 47 this quarter,
compared to 52 occupational injuries recorded in the
second quarter of 2012/13 and training hours being
maintained at approximately 14 hours per employee for
the quarter.
Corporate Social ResponsibilityThe pre-intermediate level course of the English
Language Scholarship Programme commenced
during the period under review covering 200 children
in 16 locations across 15 Districts. The John Keells
Foundation successfully conducted the English Day
2013, enabling the participants of the scholarship
programme to showcase their learning.
Under the John Keells HIV and AIDS Awareness
Campaign, a total of 1,249 persons were educated via
14 sessions, including corporate staff and members of
the armed forces.
The John Keells Vision Project conducted 3 eye camps
during the quarter covering 575 registered patients of
whom 130 patients underwent cataract operations.
Susantha Ratnayake
Chairman
7 November 2013
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Chairmans Message Financial Information
Interim Financial Statements l 3
CONSOLIDATED INCOME STATEMENT
Quarter ended 30th September Six months ended 30th September
Note 2013 2012 Change % 2013 2012 Change %
Continuing operations
Sale of goods 11,100,200 11,494,974 (3) 22,421,932 23,168,715 (3)
Rendering of services 9,980,136 9,187,679 9 18,670,444 17,526,820 7
Revenue 21,080,336 20,682,653 2 41,092,376 40,695,535 1
Cost of sales (15,235,787) (15,264,951) - (30,191,541) (30,152,179) -
Gross profit 5,844,549 5,417,702 8 10,900,835 10,543,356 3
Other operating income 193,248 455,331 (58) 533,470 863,839 (38)
Distribution expenses (736,678) (713,787) 3 (1,574,436) (1,449,095) 9Administrative expenses (2,808,241) (2,830,583) (1) (5,162,468) (5,297,927) (3)
Other operating expenses (715,778) (581,608) 23 (1,449,424) (1,193,038) 21
Results from operating activities 1,777,100 1,747,055 2 3,247,977 3,467,135 (6)
Finance cost (304,243) (17,912) 1,599 (673,554) (483,397) 39
Finance income 1,175,295 1,127,833 4 2,498,252 2,058,733 21
Net finance income 871,052 1,109,921 (22) 1,824,698 1,575,336 16
Change in insurance contract liabilities 7 (770,326) (898,867) (14) (1,696,697) (1,480,694) 15
Share of results of equity accounted investees 768,703 1,036,455 (26) 1,470,273 1,829,372 (20)
Profit before tax 2,646,529 2,994,564 (12) 4,846,251 5,391,149 (10)
Tax expense 8 (344,084) (341,222) 1 (798,557) (881,247) (9)
Profit for the period 2,302,445 2,653,342 (13) 4,047,694 4,509,902 (10)
Attributable to :
Equity holders of the parent 2,059,208 2,411,728 (15) 3,645,605 4,070,446 (10)
Non-controlling interest 243,237 241,614 1 402,089 439,456 (9)
2,302,445 2,653,342 (13) 4,047,694 4,509,902 (10)
Earnings per share Rs. Rs. Rs. Rs.
Basic 2.32 2.74 4.11 4.63
Diluted 2.31 2.72 4.09 4.60
Dividend per share 1.50 1.50
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above figures are not audited.
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PROGRESSIVE
4 l JOHN KEELLS HOLDINGS PLC l www.keells.com
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarter ended Six months ended
30th September 30th September
Note 2013 2012 2013 2012
Profit for the period 2,302,445 2,653,342 4,047,694 4,509,902
Other comprehensive income
Currency translation of foreign operations 86,743 (268,823) 342,658 11,287
Revaluation of land and buildings (40,535) - (42,400) -
Share of other comprehensive income of
equity-accounted investees 91,548 (214,644) 286,181 101,462
Net (loss) / gain on available-for-sale financial assets 4,943 249,470 43,400 (122,088)
Transfers to revenue reserves - (14,082) - (14,082)
Tax on other comprehensive income 8 - - - -
Other comprehensive income for the period, net of tax 142,699 (248,079) 629,839 (23,421)
Total comprehensive income for the period, net of tax 2,445,144 2,405,263 4,677,533 4,486,481
Attributable to :
Equity holders of the parent 2,183,562 2,219,718 4,213,266 4,047,418
Non-controlling interest 261,582 185,545 464,267 439,063
2,445,144 2,405,263 4,677,533 4,486,481
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above figures are not audited.
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Chairmans Message Financial Information
Interim Financial Statements l 5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30.09.2013 31.03.2013
ASSETSNon-current assets
Property, plant and equipment 49,295,798 49,272,979Lease rentals paid in advance 9,525,525 9,513,671Investment property 9,330,755 9,294,936Intangible assets 2,593,685 2,689,514Investments in associates 17,312,963 15,724,361Other non current financial assets 17,792,640 18,816,693Deferred tax assets 234,322 212,227Other non current assets 4,786,394 3,575,749
110,872,082 109,100,130Current assetsInventories 4,336,245 3,998,900Trade and other receivables 11,356,556 12,775,046Amounts due from related parties 78,166 207,455Other current assets 3,581,528 2,895,900Short term investments 29,957,268 26,586,054
Cash in hand and at bank 3,582,961 3,554,80452,892,724 50,018,159Total assets 163,764,806 159,118,289
EQUITY AND LIABILITIESEquity attributable to equity holders of the parentStated capital 26,588,794 26,480,396Revenue reserves 45,272,359 42,704,203Other components of equity 21,272,501 20,634,571
93,133,654 89,819,170Non-controlling interest 11,095,717 11,366,240Total equity 104,229,371 101,185,410
Non-current liabilitiesInsurance contract liabilities 19,041,956 17,388,494
Borrowings 10,662,365 11,857,764Deferred tax liabilities 1,182,200 1,222,210Employee benefit liabilities 1,465,811 1,385,072Other deferred liabilities 71,138 50,228Other non-current liabilities 547,623 530,075
32,971,093 32,433,843Current liabilitiesTrade and other payables 12,892,688 14,608,263Amounts due to related part ies 25,443 15,280Income tax payable 1,018,221 981,013Short term borrowings 3,519,900 1,853,767Current portion of borrowings 3,570,777 3,048,936Other current liabilities 2,223,402 1,635,534Bank overdrafts 3,313,911 3,356,243
26,564,342 25,499,036
Total equity and l iabilities 163,764,806 159,118,289
Rs. Rs.Net assets per share 108.42 104.78
Note : All values are in Rupees 000s, unless otherwise stated. The above figures are not audited.
I certify that the financial statements comply with the requirements of the Companies Act No.7 of 2007.
M J S RajakariarGroup Financial Controller
The Board of Directors is responsible for the preparation and presentation of these financial statements.
S C Ratnayake J R F PeirisChairman Group Finance Director7 November 2013
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PROGRESSIVE
6 l JOHN KEELLS HOLDINGS PLC l www.keells.com
CONSOLIDATED STATEMENT OF CASH FLOW
For the six months ended 30th September Note 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before working capital changes A 3,777,539 3,968,722
(Increase) / Decrease in inventories (337,345) 1,175,650(Increase) / Decrease in trade and other receivables 1,631,270 (2,040,271)(Increase) / Decrease in other current assets (529,272) 137,318(Increase) / Decrease in other non-current assets (1,210,645) (1,045,235)Increase / (Decrease) in trade and other payables (1,687,864) 1,111,761Increase / (Decrease) in other current liabilities 565,619 (15,347)Increase / (Decrease) in other current financial liabilities - (74,593)Increase / (Decrease) in insurance contract liabilities 1,653,462 1,737,774Cash generated from operations 3,862,764 4,955,779
Finance income received 2,536,492 1,907,233Finance costs paid (666,740) (444,956)
Dividend received - 271,589Tax paid (789,412) (687,612)Gratuity paid (65,313) (73,611)Net cash flow from operating activities 4,877,791 5,928,422
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIESPurchase and construction of property, plant and equipment (1,614,933) (2,440,282)Purchase of intangible assets (26,875) (8,589)Addition to investment property (35,819) (204,228)Acquisi tion of associates - (168,955)Increase in interest in associates (10,558) (58,130)Proceeds from sale of property, plant and equipment and intangible assets 151,877 41,149Proceeds from demolition on property, plant & equipment 37,613 -Proceeds from sale of interest in associates - 585,675
proceeds from sales of non-current investments - 137,808Proceeds from sale of financial instruments - fair valued through profit or loss 227,470 115,552Purchase of financial instruments - fair valued through profit or loss (300,197) (410,782)(Purchase) / disposal of short term investments (net) 1,962,840 1,474,788(Purchase) / disposal of other non current financial assets (net) 1,067,453 (515,536)Net cash flow from / (used in) investing activities 1,458,871 (1,451,530)
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIESProceeds from issue of shares 108,398 769,493Proceeds from non-controlling interests on issue of rights in subsidiaries 425 49,903Direct cost on issue of shares (6,534) (6,547)Acquisi tion of non-controlling interest - (516)Dividend paid to equity holders of parent (1,286,460) (1,275,977)Dividend paid to shareholders with non-controlling interest (521,276) (627,775)
Proceeds from long term borrowings 2,156,640 623,274Repayment of long term borrowings (3,083,932) (1,432,124)Proceeds from/(repayment of) other financial liabilities (net) 1,666,133 (81,467)Net cash flow from / (used in) financing activities (966,606) (1,981,736)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 5,370,056 2,495,156
CASH AND CASH EQUIVALENTS AT THE BEGINNING 16,860,241 19,810,729
CASH AND CASH EQUIVALENTS AT THE END 22,230,297 22,305,885
ANALYSIS OF CASH AND CASH EQUIVALENTSFavorable balancesShort term investments 21,961,247 22,495,221Cash in hand and at bank 3,582,961 3,531,739
Unfavorable balancesBank overdrafts (3,313,911) (3,721,075)TOTAL CASH AND CASH EQUIVALENTS 22,230,297 22,305,885
Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.
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PROGRESSIVE
6 l JOHN KEELLS HOLDINGS PLC l www.keells.com
CONSOLIDATED STATEMENT OF CASH FLOW
For the six months ended 30th September Note 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before working capital changes A 3,777,539 3,968,722
(Increase) / Decrease in inventories (337,345) 1,175,650(Increase) / Decrease in trade and other receivables 1,631,270 (2,040,271)(Increase) / Decrease in other current assets (529,272) 137,318(Increase) / Decrease in other non-current assets (1,210,645) (1,045,235)Increase / (Decrease) in trade and other payables (1,687,864) 1,111,761Increase / (Decrease) in other current liabilities 565,619 (15,347)Increase / (Decrease) in other current financial liabilities - (74,593)Increase / (Decrease) in insurance contract liabilities 1,653,462 1,737,774Cash generated from operations 3,862,764 4,955,779
Finance income received 2,536,492 1,907,233Finance costs paid (666,740) (444,956)
Dividend received - 271,589Tax paid (789,412) (687,612)Gratuity paid (65,313) (73,611)Net cash flow from operating activities 4,877,791 5,928,422
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIESPurchase and construction of property, plant and equipment (1,614,933) (2,440,282)Purchase of intangible assets (26,875) (8,589)Addition to investment property (35,819) (204,228)Acquisi tion of associates - (168,955)Increase in interest in associates (10,558) (58,130)Proceeds from sale of property, plant and equipment and intangible assets 151,877 41,149Proceeds from demolition on property, plant & equipment 37,613 -Proceeds from sale of interest in associates - 585,675
proceeds from sales of non-current investments - 137,808Proceeds from sale of financial instruments - fair valued through profit or loss 227,470 115,552Purchase of financial instruments - fair valued through profit or loss (300,197) (410,782)(Purchase) / disposal of short term investments (net) 1,962,840 1,474,788(Purchase) / disposal of other non current financial assets (net) 1,067,453 (515,536)Net cash flow from / (used in) investing activities 1,458,871 (1,451,530)
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIESProceeds from issue of shares 108,398 769,493Proceeds from non-controlling interests on issue of rights in subsidiaries 425 49,903Direct cost on issue of shares (6,534) (6,547)Acquisi tion of non-controlling interest - (516)Dividend paid to equity holders of parent (1,286,460) (1,275,977)Dividend paid to shareholders with non-controlling interest (521,276) (627,775)
Proceeds from long term borrowings 2,156,640 623,274Repayment of long term borrowings (3,083,932) (1,432,124)Proceeds from/(repayment of) other financial liabilities (net) 1,666,133 (81,467)Net cash flow from / (used in) financing activities (966,606) (1,981,736)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 5,370,056 2,495,156
CASH AND CASH EQUIVALENTS AT THE BEGINNING 16,860,241 19,810,729
CASH AND CASH EQUIVALENTS AT THE END 22,230,297 22,305,885
ANALYSIS OF CASH AND CASH EQUIVALENTSFavorable balancesShort term investments 21,961,247 22,495,221Cash in hand and at bank 3,582,961 3,531,739
Unfavorable balancesBank overdrafts (3,313,911) (3,721,075)TOTAL CASH AND CASH EQUIVALENTS 22,230,297 22,305,885
Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.
Chairmans Message Financial Information
Interim Financial Statements l 7
For the six months ended 30th September Note 2013 2012
A Profit before working capital changes
Profit before tax 4,846,251 5,391,149
Adjustments for:
Finance income (2,498,252) (1,911,624)
Finance cost 673,554 483,397
Share of results of equity accounted investees (1,470,273) (1,829,372)
(Profit)/loss on sale of non-current investments 11,461 (172,980)
Profit on sale of non-current investments in associates - (129,939)
Share based payment expense 9 71,875 -
Depreciation of property, plant and equipment 1,269,377 1,064,217
Provision for impairment losses 141,281 450,000
(Profit) / loss on sale of property, plant and equipment and intangible assets 13,137 (7,988)
Amortisation of lease rentals paid in advance 337,860 344,341Amortisation of intangible assets 126,329 129,586
Amortisation of other deferred liabilities (256) (256)
Gratuity provision and related costs 146,995 146,773
Unrealised (gain) / loss on foreign exchange (net) 108,200 11,418
3,777,539 3,968,722
Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.
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Chairmans Message Financial Information
Interim Financial Statements l 9
COMPANY INCOME STATEMENT
Quarter ended 30th September Six months ended 30th September
Note 2013 2012 Change % 2013 2012 Change %
Continuing operations
Rendering of services 200,991 236,281 (15) 382,678 371,186 3
Revenue 200,991 236,281 (15) 382,678 371,186 3
Cost of sales (99,238) (96,494) 3 (198,246) (181,872) 9
Gross profit 101,753 139,787 (27) 184,432 189,314 (3)
Dividend income 96,452 76,903 25 2,288,050 2,436,949 (6)
Other operating income 10,609 26,319 (60) 12,959 31,247 (59)
Administrative expenses (301,236) (534,931) (44) (596,489) (827,107) (28)Other operating expenses (7,664) (8,080) (5) (17,238) (17,172) 0
Results from operating activities (100,086) (300,002) (67) 1,871,714 1,813,231 3
Finance cost (39,053) (9,448) 313 (130,012) (161,385) (19)
Finance income 327,285 285,662 15 712,007 567,394 25
Net finance income 288,232 276,214 4 581,995 406,009 43
Profit before tax 188,146 (23,788) 891 2,453,709 2,219,240 11
Tax expense 8 (101,324) - - (133,856) (4,752) 2,717
Profit for the period 86,822 (23,788) 465 2,319,853 2,214,488 5
Rs. Rs. Rs. Rs.
Dividend per share - - 1.50 1.50
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above figures are not audited.
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PROGRESSIVE
10 l JOHN KEELLS HOLDINGS PLC l www.keells.com
COMPANY STATEMENT OF COMPREHENSIVE INCOME
Quarter ended Six months ended
30th September 30th September
Note 2013 2012 2013 2012
Profit for the period 86,822 (23,788) 2,319,853 2,214,488
Other comprehensive income
Net (loss)/gain on available-for-sale financial assets 8,357 266,672 51,838 (48,009)
Tax on other comprehensive income 8 - - - -
Other comprehensive income for the period, net of tax 8,357 266,672 51,838 (48,009)
Total comprehensive income for the period, net of tax 95,179 242,884 2,371,691 2,166,479
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above figures are not audited.
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Chairmans Message Financial Information
Interim Financial Statements l 11
COMPANY STATEMENT OF FINANCIAL POSITION
As at 30.09.2013 31.03.2013
ASSETS
Non-current assets
Property, plant and equipment 108,079 75,309Intangible assets 75,780 74,004
Investments in subsidiaries and joint ventures 26,815,718 26,641,307
Investments in associates 9,831,925 9,821,364
Other non current financial assets 1,789,642 1,710,653
Other non current assets 10,310 10,310
38,631,454 38,332,947
Current assets
Trade and other receivables 72,662 994,862
Amounts due from related parties 1,222,448 518,084
Other current assets 296,375 384,966
Short term investments 12,677,477 12,551,540Cash in hand and at bank 174,680 63,159
14,443,642 14,512,611
Total assets 53,075,096 52,845,558
EQUITY AND LIABILITIES
Stated capital 26,588,794 26,480,396
Revenue reserves 21,255,149 20,221,756
Other components of equity 207,170 83,457
Total equity 48,051,113 46,785,609
Non-current liabilities
Borrowings 3,271,815 3,752,621
Employee benefit liabilities 140,157 134,0753,411,972 3,886,696
Current liabilities
Trade and other payables 195,889 229,990
Amounts due to related part ies 1,138 13,156
Current portion of borrowings 1,348,851 1,314,424
Other current liabilities 18,535 105,478
Bank overdrafts 47,598 510,205
1,612,011 2,173,253
Total equity and liabilities 53,075,096 52,845,558
Rs. Rs.
Net assets per share 55.94 54.58
Note : All values are in Rupees 000s, unless otherwise stated.
The above figures are not audited.
I certify that the financial statements comply with the requirements of the Companies Act No.7 of 2007.
M J S Rajakariar
Group Financial Controller
The Board of Directors is responsible for the preparation and presentation of these financial statements.
S C Ratnayake J R F Peiris
Chairman Group Finance Director
7 November 2013
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PROGRESSIVE
12 l JOHN KEELLS HOLDINGS PLC l www.keells.com
COMPANY STATEMENT OF CASH FLOW
For the six months ended 30th September 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 2,453,709 2,219,240Adjustments for: Finance income (712,007) (567,394) Dividend income (2,288,050) (2,436,949) Finance cost 130,012 161,385
Share based payment expense 22,185 -Depreciation of property, plant and equipment 11,004 12,909Profit on sale of property, plant and equipment (4) (2,697)
Amortisation of intangible assets 12,324 7,915Provision for impairment losses 182,703 450,000Gratuity provision and related costs 12,346 11,284Profit on sale of other investments - (11,624)
Profit before working capital changes (175,778) (155,931)
(Increase)/Decrease in trade and other receivables 384,906 63,141(Increase)/Decrease in other current assets 12,776 43,033Increase/(Decrease) in trade and other payables (46,118) (53,178)Increase/(Decrease) in other current liabilities (86,943) -Cash generated from operations 88,843 (102,935)Finance income received 712,007 534,201Finance expenses paid (123,198) (122,945)Dividend received 2,308,255 2,468,660Tax paid (58,040) (28,071)Gratuity paid (6,263) (9,727)Net cash flow from operating activities 2,921,604 2,739,183
CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES
Purchase and construction of property, plant and equipment (43,774) (2,033)Purchase of intangible assets (14,099) (8,312)Increase in interest in subsidiaries (307,423) (790,381)Increase in interest in associates (10,560) (227,085)Purchase of non current investment (30,353) -Proceeds from sale of Property, plant and equipment 4 6,696Proceeds from sale of non-current investments - 46,563(Purchase) / disposal of short term investments (net) 6,671,151 (1,099,804)(Purchase) / disposal of other non current financial assets (net) 5,028 -Net cash flow from/(used in) investing activities 6,269,974 (2,074,356)
CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIESProceeds from issue of shares 108,398 769,493Dividend paid (1,286,460) (1,275,977)Repayment of long term borrowings (640,474) (664,176)Net cash flow from / (used in) financing activities (1,818,536) (1,170,660)
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 7,373,042 (505,833)
CASH AND CASH EQUIVALENTS AT THE BEGINNING 5,433,342 8,919,099
CASH AND CASH EQUIVALENTS AT THE END 12,806,384 8,413,266
ANALYSIS OF CASH & CASH EQUIVALENTSFavorable balancesShort term investments 12,679,302 8,868,202Cash in hand and at bank 174,680 41,701
12,853,982 8,909,903Unfavorable balances
Bank overdrafts (47,598) (496,637)TOTAL CASH AND CASH EQUIVALENTS 12,806,384 8,413,266
Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.
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Chairmans Message Financial Information
Interim Financial Statements l 13
COMPANY STATEMENT OF CHANGES IN EQUITY
Stated Other Available for Revenue Total
capital capital sale reserve reserves Equity
reserves
As at 1 April 2013 26,480,396 - 83,457 20,221,756 46,785,609
Profit for the period - - - 2,319,853 2,319,853
Other comprehensive income - - 51,838 - 51,838
Total comprehensive income - - 51,838 2,319,853 2,371,691
Exercise of share option 108,398 - - - 108,398
Share based payments - 71,875 - - 71,875
Final dividend paid - 2012/13 - - - (1,286,460) (1,286,460)
As at 30 September 2013 26,588,794 71,875 135,295 21,255,149 48,051,113
As at 1 April 2012 25,110,528 - 229,595 15,841,968 41,182,091
Profit for the period - - - 2,214,488 2,214,488
Other comprehensive income - - (48,009) - (48,009)
Total comprehensive income - - (48,009) 2,214,488 2,166,479
Exercise of share option 769,493 - - - 769,493
Final dividend paid - 2010/11 - - - (1,275,977) (1,275,977)
As at 30 September 2012 25,880,021 - 181,586 16,780,479 42,842,086
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above figures are not audited.
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PROGRESSIVE
14 l JOHN KEELLS HOLDINGS PLC l www.keells.com
OPERATING SEGMENT INFORMATION
BUSINESS SEGMENTS
The following tables present revenue and profit information regarding the Groups business segments.
Transportation Leisure Property Consumer Foods & RetailFor the Quarter ended
30th September 2013 2012 2013 2012 2013 2012 2013 2012
External revenue 4,198,035 5,326,710 5,268,197 4,650,872 547,908 439,710 6,065,166 5,985,284
Inter segment revenue 102,948 91,290 2,964 13,238 63,707 68,741 75,152 10,745
Total segment revenue 4,300,983 5,418,000 5,271,161 4,664,110 611,615 508,451 6,140,318 5,996,029
Eliminations of inter
segment revenue
Net revenue
Segment results 200,103 230,096 1,161,960 966,637 (55,996) (276,702) 280,834 309,441
Finance cost (18,904) (12,497) (127,332) (88,080) (20,202) (2,094) (45,371) (32,561)
Finance income 48,376 51,905 103,770 62,389 17,468 22,949 20,533 13,625
Change in fair value of
investment property - - - - - - - -
Share of results of equity
accounted investees 515,536 753,287 - - - - - -
Eliminations / adjustments (603) (588) (1,101) 3,832 14,019 (2,430) (3,000) (3,000)
Profit / (loss) before tax 744,508 1,022,203 1,137,297 944,778 (44,711) (258,277) 252,996 287,505
Tax expense (48,386) (62,252) (105,587) (21,302) 53,154 (10,611) (77,252) (107,108)
Profit / (loss) for the period 696,122 959,951 1,031,710 923,476 8,443 (268,888) 175,744 180,397
Purchase and construction
of PPE 106,865 813 467,382 918,222 2,449 2,107 326,431 366,416
Addition to IA - - - - - - 1,903 832
Depreciation of PPE 26,100 16,657 315,402 255,290 2,153 2,546 205,379 166,213
Amortisation /
impairment of IA - 1,205 - - - - 3,960 3,077
Amortisation of LRPA - - 174,678 173,194 - - - -
Gratuity provision and
related costs 4,190 5,771 21,081 20,706 330 2,170 24,826 16,985
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above figures are not audited.
PPE (Property, plant and equipment), IA (Intangible assets), LRPA (Lease rentals paid in advance)
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Interim Financial Statements l 15
Financial Services Informat ion Technology Others Group Total
2013 2012 2013 2012 2013 2012 2013 2012
2,336,533 2,137,951 1,771,156 1,427,177 893,341 714,949 21,080,336 20,682,653
25,776 24,977 78,256 72,845 137,309 140,315 486,112 422,151
2,362,309 2,162,928 1,849,412 1,500,022 1,030,650 855,264 21,566,448 21,104,804
(486,112) (422,151)
21,080,336 20,682,653
52,334 (100,892) 137,760 67,020 (63,831) 25,307 1,713,164 1,220,907
(1) 145,332 (25,568) (19,266) (66,865) (8,746) (304,243) (17,912)
13,864 18,023 3,288 3,013 333,111 266,684 540,410 438,588
- - - - - - - -
238,751 260,360 - 5,070 14,416 17,738 768,703 1,036,455
- - (72,820) - (8,000) 318,712 (71,505) 316,526
304,948 322,823 42,660 55,837 208,831 619,695 2,646,529 2,994,564
(88,742) (104,181) (11,509) (11,800) (65,762) (23,968) (344,084) (341,222)
216,206 218,642 31,151 44,037 143,069 595,727 2,302,445 2,653,342
109,275 31,122 31,244 37,185 78,396 26,917 1,122,042 1,382,782
- - 5,300 4,519 - - 7,203 5,351
39,759 36,582 41,969 34,360 27,393 29,477 658,155 541,125
46,995 46,854 7,065 5,801 6,363 10,356 64,383 67,293
- - - - (2,653) 321 172,025 173,515
8,286 6,550 6,012 5,230 10,238 23,593 74,963 81,005
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PROGRESSIVE
16 l JOHN KEELLS HOLDINGS PLC l www.keells.com
OPERATING SEGMENT INFORMATION
BUSINESS SEGMENTS
The following tables present revenue, profit information and segment assets regarding the Groups business segments.
Transportation Leisure Property Consumer Foods & RetailFor the six months ended
30th September 2013 2012 2013 2012 2013 2012 2013 2012
External revenue 8,326,538 10,634,160 9,384,827 8,563,783 1,220,660 1,051,251 12,219,684 11,972,127
Inter segment revenue 205,936 183,484 38,402 24,887 142,941 137,269 166,812 25,742
Total segment revenue 8,532,474 10,817,644 9,423,229 8,588,670 1,363,601 1,188,520 12,386,496 11,997,869
Eliminations of inter
segment revenueNet revenue
Segment result 429,812 568,061 1,635,605 1,650,168 71,380 (245,893) 532,798 717,605
Finance cost (31,864) (36,403) (280,769) (191,650) (37,378) (4,768) (88,105) (53,006)
Finance income 89,580 104,322 245,659 130,490 53,248 61,927 63,637 21,440
Share of results of equity
accounted investees 1,005,860 1,344,236 - - - - - -
Eliminations / adjustments (1,207) (1,176) (2,201) 3,832 10,501 (4,857) (6,000) (6,000)
Profit / (loss) before tax 1,492,181 1,979,040 1,598,294 1,592,840 97,751 (193,591) 502,330 680,039
Tax expense (92,408) (133,441) (172,434) (66,308) 36,004 (33,228) (141,931) (235,280)
Profit / (loss) for the period 1,399,773 1,845,599 1,425,860 1,526,532 133,755 (226,819) 360,399 444,759
Segment assets 7,563,747 7,901,875 58,714,709 50,010,878 16,126,701 10,925,343 15,778,283 13,914,679
Investments in associates
Deferred tax assets
Goodwill
Other current assets
Eliminations / adjustments
Total assets
Purchase and construction
of PPE 113,445 7,406 716,746 1,621,930 15,859 3,665 452,655 622,921Addition to IA - - - - - - 4,171 1,455
Depreciation of PPE 45,507 40,061 636,135 507,789 7,986 5,081 373,450 312,604
Amortisation /
impairment of IA 1,207 4,155 - - - - 7,934 6,123
Amortisation of LRPA - - 337,301 343,835 - - - -
Gratuity provision and
related costs 8,251 10,981 42,902 37,607 630 2,470 48,997 39,532
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above figures are not audited.
PPE (Property, plant and equipment), IA (Intangible assets), LRPA (Lease rentals paid in advance)
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Interim Financial Statements l 17
Financial Services Information Technology Others Group Total
2013 2012 2013 2012 2013 2012 2013 2012
4,566,056 4,135,343 3,650,431 2,859,123 1,724,180 1,479,748 41,092,376 40,695,535
52,774 49,426 153,373 145,581 278,819 285,028 1,039,057 851,417
4,618,830 4,184,769 3,803,804 3,004,704 2,002,999 1,764,776 42,131,433 41,546,952
(1,039,057) (851,417) 41,092,376 40,695,535
83,913 73,517 146,274 96,601 (172,068) 1,140 2,727,714 2,861,199
(2) (6) (45,815) (34,758) (189,621) (162,806) (673,554) (483,397)
41,299 30,842 6,784 4,550 722,308 535,684 1,222,515 889,255
439,231 475,698 - (4,909) 25,182 14,347 1,470,273 1,829,372
- - - - 98,210 302,921 99,303 294,720
564,441 580,051 107,243 61,484 484,011 691,286 4,846,251 5,391,149
(154,675) (189,208) (23,094) (17,185) (250,019) (206,597) (798,557) (881,247)
409,766 390,843 84,149 44,299 233,992 484,689 4,047,694 4,509,902
28,795,651 25,257,283 4,959,224 4,020,518 22,373,694 19,709,758 154,312,009 131,740,334
17,312,963 16,847,813
234,322 182,476
950,884 758,115
3,581,528 3,892,559
(12,626,900) (14,617,227)
163,764,806 138,804,070
153,681 86,898 56,696 51,960 105,851 45,502 1,614,933 2,440,282- - 8,605 7,134 14,099 - 26,875 8,589
77,600 72,601 71,171 66,995 57,528 59,086 1,269,377 1,064,217
94,061 93,708 10,803 10,868 12,324 14,732 126,329 129,586
- - - - 559 506 337,860 344,341
16,418 14,356 9,583 8,460 20,214 33,367 146,995 146,773
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PROGRESSIVE
18 l JOHN KEELLS HOLDINGS PLC l www.keells.com
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
1 CORPORATE INFORMATION
John Keells Holdings PLC. is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock
Exchange. Ordinary shares of the company are lis ted on the Colombo Stock Exchange and Global Depository Receipts (GDRs) are
listed on the Luxembourg Stock Exchange.
2 INTERIM CONDENSED FINANCIAL STATEMENTS
The financial statements for the period ended 30 September 2013, includes the Company referring to John Keells Holdings PLC.,
as the holding company and the Group referring to the companies whose accounts have been consolidated therein.
3 APPROVAL OF FINANCIAL STATEMENTS
The interim condensed financial statements of the Group and the Company for the 6 months ended 30 September 2013 were
authorised for issue by the Board of Directors on 7 November 2013.
4 BASIS OF PREPARATION
The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard (SLAS) LKAS 34
- Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial
statements for the year ended 31 March 2013, and changes to the accounting policies as given in Note 5 to these financial
statements.
The presentation and classification of the financial statements of the previous year have been amended, where relevant, for better
presentation and to be comparable with those of the current year.
The interim condensed financial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand
except when otherwise indicated.
5 CHANGES IN ACCOUNTING POLICIES
Employee Share option Plan
Accounting for employee remuneration in the form of shares, SLFRS 2- Share Based Payments, is effective for the Group, from the
financial year beginning 2013/14.
Employees of the Group receive remuneration in the form of share-based payment transactions, whereby employees render services
as consideration for equity instruments (equity-settled transactions). The cost of the employee services received in respect of the
share options granted is recognised in the income statement over the period employees provide services, from the time when the
award is granted up to the vesting date of the options. The overall cost of the award is calculated using the number of share options
expected to vest and the fair value of the options at the date of grant.
The fair value of options granted is determined by using an option pricing model to estimate the number of shares likely to vest.
This takes into account the exercise price of the option, the current share price, the risk-free interest rate, the expected volatility of
the share price over the life of the option and other relevant factors.
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Chairmans Message Financial Information
Interim Financial Statements l 19
6 OPERATING SEGMENTS
For management purposes, the Group is organised into business units based on their products and services and has seven
reportable operating segments as follows:
Transportation
Leisure
Property
Consumer Foods & Retail
Financial Services
Information Technology
Others
7 CHANGE IN LIFE INSURANCE CONTRACT LIABILITIES
The results of Union Assurance PLCs life business segment is consolidated line by line into the Groups consolidated incomestatement.
The change in life insurance contract liabilities represents the transfer to the Life Fund, the difference between all income and
expenditure attributable to life policy holders during the period.
7 TAX EXPENSE
Group Company
For the six months ended 30th September 2013 2012 2013 2012
Income statement
Current income tax 801,804 870,979 133,856 4,752
Deferred tax (3,247) 10,268 - -
Other comprehensive Income
Deferred tax - - - -
798,557 881,247 133,856 4,752
9 SHARE BASED PAYMENT
At an extra ordinar y general meeting held on 28th June 2013, the shareholders of the company approved the employee share
option plan number 8. The share options arising from this plan has now been accounted for based on SLFRS 2 share based
payments and accordingly Rs 72mn has been charged as an expense in the consolidated income statement during the quarter
ended 30th September 2013.
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PROGRESSIVE
20 l JOHN KEELLS HOLDINGS PLC l www.keells.com
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
10 RELATED PARTY TRANSACTIONS
Group Company
For the six months ended 30th September 2013 2012 2013 2012
Transactions with related parties
Subsidiaries
(Purchases) / sales of goods - - (2,373) (1,446)
(Receiving) / rendering of services - - 306,760 293,923
(Purchases) / sale of property plant & equipment - - - -
Loans given - - - 485,000
Interest received / (paid) - - - 36,723
Rent received / (paid) - - (46,246) (26,454)
Guarantees received / (paid) - - - -
Joint Ventures
(Receiving) / rendering of services 44,733 17,582 - -
Associates
(Purchases) / sales of goods 2,365 3,208 - -
(Receiving) / rendering of services 11,766 8,926 1,856 2,111
Interest received / (paid) 160,800 227,863 49,721 121,210
Loans taken - (10) - -
Leases taken - - - -
Key management personnel
(Receiving) / rendering of services - - - -
Close family members of KMP
(Receiving) / rendering of services - - - -
Companies controlled / jointly controlled / significantly
Influenced by KMP and their close family members
(Purchases) / sales of goods - - - -
Post employment benefit plan
Contributions to the provident fund 104,086 100,378 22,909 21,185
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Chairmans Message Financial Information
Interim Financial Statements l 21
11 SHARE INFORMATION
11.1 Public share holdings
The percentage of shares held by the public as at 30 September 2013 was 88.17 % (30 June 2013 - 98.45 %).
11.2 Directors share holdings
The number of shares held by the Board of Directors are as follows:
As at 30-09-2013 30-06-2013
S C Ratnayake Chairman/CEO 5,299,066 5,299,066
A D Gunewardene Deputy Chairman 6,481,720 6,481,720
J R F Peiris 1,371,392 1,371,392
E F G Amerasinghe 5,514 5,514
I Coomaraswamy Nil Nil
T Das Nil Nil
A R Gunasekara 107,866 107,866
M A Omar Nil Nil
S S Tiruchelvam (resigned on w.e.f 09-09-2013) N/A Nil
11.3 Twenty largest shareholders of the company are as follows:
As at 30-09-2013 30-06-2013
Number of Number of
shares % shares %
1 Mr S E Captain 88,230,172 10.3% 84,774,813 9.9%
2 Broga Hill Investments Limited 85,098,555 9.9% 84,681,555 9.9%
3 Janus Overseas Fund 74,878,133 8.7% 75,942,233 8.9%
4 Paints & General Industries Limited 51,744,193 6.0% 50,007,835 5.8%
5 Aberdeen Global-Asian Smaller Companies Fund 31,530,435 3.7% 32,930,435 3.8%
6 Deutsche Bank AG London 31,510,732 3.7% 33,628,953 3.9%
7 Melstacorp (Private) Limited 31,499,883 3.7% 31,499,883 3.7%
8 Aberdeen Global-Emerging Markets Smaller companies fund 22,620,207 2.6% 22,990,207 2.7%
9 Estate of Mr A A N De Fonseka 19,952,358 2.3% 19,952,358 2.3%
10 Aberdeen Global Asia Pacific Equity Fund 19,047,737 2.2% 19,047,737 2.2%
11 Janus Aspen series Overseas Portfolio Fund 18,303,333 2.1% 18,303,333 2.1%
12 Schroder International Selection Fund 15,976,971 1.9% 13,531,656 1.6%
13 Mr K Balendra 13,141,807 1.5% 13,141,807 1.5%
14 J P Morgan Clearing Corporation 11,361,466 1.3% 11,365,142 1.3%
15 London- Edinburgh Dragon Trust PLC 10,936,664 1.3% 10,936,664 1.3%
16 Rubber Investment Trust Limited A/C no.1 10,193,944 1.2% 10,991,944 1.3%
17 BBH-Matthews International Funds 9,556,504 1.1% 9,556,504 1.1%
18 Aberdeen Asia Pacific Fund 9,074,229 1.1% 9,074,229 1.1%19 Aberdeen Institutional Commingled Funds, LLC 8,460,938 1.0% 7,830,938 0.9%
20 Aberdeen Global Frontier Marketing Equity Fund 7,311,766 0.9% 4,581,766 0.9%
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PROGRESSIVE
22 l JOHN KEELLS HOLDINGS PLC l www.keells.com
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
11.4 Stated capital
Stated capital is represented by number of shares in issue as given below:
As at 30-09-2013 30-06-2013
Ordinary shares 857,921,888 856,112,828
Global depository receipts 1,122,069 1,129,677
11.5 Net assets per share
Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 30 September 2013.
11.6 Market price per share
For the Quarter ended 30th September 2013 2012
Rs. Rs.
Highest 273.20 229.90
Lowest 204.00 176.00
Last traded 218.00 229.10
12 DIVIDENDS PAID
A final dividend of Rs. 1.50 per share for the financial year ended 31 March 2013 was paid on 17 June 2013.
13 DISPOSAL OF ASSOCIATE
In June 2013, as per sales and purchase agreement the Group disposed of its interest in one of its associates, namely NDO India
(Pvt) Ltd. The resultant loss of Rs. 11mn has been reflected in the Consolidated Income Statement.
14 INVESTMENT INTO WATERFRONT PROPERTIES (PRIVATE) LIMITED (THE PROJECT COMPANY)
John Keells holdings PLC. (JKH) had proposed to the Government of Sri Lanka a Project, valued in excess of USD 650mn, involving
the developing, owning, managing, operating, selling, leasing and renting a luxury multi/mixed use Integrated Resort (the Project)
on the land owned and occupied by its subsidiaries Ceylon Cold Stores PLC (CCS), John Keells PLC (JKL), John Keells Properties
(Pvt) Ltd (JKP) and Waterfront Properties (Pvt) Ltd (WPL) in Colombo 2. John Keells Holdings PLC together with its subsidiaries
CCS, JKL and JKP will be majority shareholders in the Project Company, WPL. The Project Company had already entered into an
agreement with the Board of Investment of Sri Lanka to facilitate the requisite approvals and a Gazette published on 18 July 2013
under the Strategic Development Projects Act had made ava ilable tax, duty and other concessions to the Project.
At an Extraordinary General Meeting held in August 2013, the shareholders of JKH granted approval for the Investment in the
Project Company as a Major Transaction under the Companies Act of 2007.
A second gazette published under the Strategic Development Projects Act on the 23 September 2013 further confirmed the
available tax, duty and other concessions to the Project (Please also refer Note 16 ).
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Chairmans Message Financial Information
Interim Financial Statements l 23
15 CONTINGENCIES, CAPITAL AND OTHER COMMITMENTS
There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the
annual report for the year ended 31 March 2013.
16 EVENTS AFTER THE REPORTING PERIOD
Waterfront Project
In October 2013, the shareholders of JKH approved to issue 131,987,983 Ordinary Shares in the proportion of two (2) Ordinary
Shares for every thirteen (13) Ordinary Shares in the capital of the Company by way of a Rights Issue, at a price of Rupees One
Hundred and Seventy Five (Rs.175/-) per share and two warrants attached thereto; 2015 warrants 43,995,994 warrants in the
ratio of one (1) warrant for every three (3) shares subscribed to in the Rights issue at an exercise price of Rupees One Hundred and
Eighty Five (Rs.185) per share exercisable 24 months from the issue of the warrant and 2016 warrants 43,995,994 warrants in
the ratio of one (1) warrant for every three (3) shares subscribed to in the Rights issue at an exercise price of Rupees One Hundred
and Ninety Five (Rs.195) per share exercisable 36 months f rom the issue of the warrant. The proceeds from the Rights is to be
utilized towards JKHs investment in the Project Company. The Rights Issue was substantially oversubscribed.
The two Gazettes published under the Strategic Development Projects Act mentioned in Note 14 above, have since been withdrawn
and a new Gazette, under the Strategic Development Projects Act is awaited.
Interim Dividend
The Board of Directors of the company has declared an interim dividend of Rs.1.00 per share for the financial year 2013/14. As
required by section 56 (2) of the Companies Act no 07 of 2007, the Board of Directors has confirmed that the company satisfies the
solvency test in accordance with section 57 of the companies Act No.07 of 2007, and has obtained a certificate from auditors, prior
to declaring an interim dividend which is to be paid on the 27 November 2013.
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PROGRESSIVE
24 l JOHN KEELLS HOLDINGS PLC l www.keells.com
NOTES
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Corporate Information
Name of Company
John Keells Holdings PLC
Legal Form
Public Limited Liability Company
Incorporated in Sri Lanka in 1979
Ordinary Shares listed on the
Colombo Stock Exchange
GDRs listed on the Luxembourg
Stock Exchange
Company Registration No.
PQ 14
Directors
S C Ratnayake Chairman
A D Gunewardene Deputy Chairman
J R F Peiris
E F G Amerasinghe
I Coomaraswamy
T Das
A R Gunasekara
M A Omar
Senior Independent Director
E F G Amerasinghe
Audit Committee
A R Gunasekara Chairman
E F G Amerasinghe
I Coomaraswamy
Human Resources and
Compensation Committee
E F G Amerasinghe Chairman
I Coomaraswamy
A R Gunasekara
M A Omar
Nominations Committee
T Das Chairman
M A OmarS C Ratnayake
Bankers
Bank of Ceylon
Citibank N.A
Commercial Bank
Deutsche Bank A.G
DFCC Bank
DFCC Vardhana Bank
Hatton National Bank
Hongkong & Shanghai Banking
Corporation
Muslim Commercial Bank
Nations Trust Bank
National Savings Bank
Pan Asia Banking Corporation
Peoples Bank
Sampath Bank
Seylan Bank
Standard Chartered Bank
Depository for GDRs
Citibank N.A
New York
Registered office of the Company
117, Chittampalam A Gardiner
Mawatha, Colombo 2, Sri Lanka
Internet: www.keells.com
Email: [email protected]
Secretaries and Registrars
Keells Consultants (Pvt) Limited
117,Chittampalam A Gardiner
Mawatha,Colombo 2, Sri Lanka
Telephone: +94 11 230 6245
Facsimile: +94 11 243 9037
Investor Relations
John Keells Holdings PLC
117, Chittampalam A GardinerMawatha, Colombo 2, Sri Lanka
Telephone: +94 11 230 6165
+94 11 230 6000
Facsimile: +94 11 230 6160
Email: [email protected]
Group Sustainability and
Enterprise Risk Management
John Keells Holdings PLC
117, Chittampalam A Gardiner
Mawatha, Colombo 2, Sri Lanka
Telephone: +94 11 230 6182
Facsimile: +94 11 230 6249
Email: [email protected]
Contact for Media
Corporate Communications Division
John Keells Holdings PLC
117, Chittampalam A Gardiner
Mawatha, Colombo 2, Sri Lanka
Telephone: +94 11 230 6191
Email: [email protected]
Auditors
Ernst & Young
Chartered Accountants
P.O. Box 101
Colombo, Sri Lanka
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