Singer Sri Lanka : Interim Financial Statements as at 31/03/2024

S I N G E R ( S R I L A N K A ) P L C

INTERIM FINANCIAL STATEMENTS FOR THE TWELVE

MONTHS ENDED 31ST MARCH 2024

Interim Financial Statements For the Twelve Months ended 31st March

Statement of Profit or Loss and Other Comprehensive Income

			Group			Company
For the Twelve Months ended 31st March	2024	2023	Change	2024	2023	Change
	Rs. '000		Rs. '000	%	Rs. '000	Rs. '000	%
Revenue	69,973,442	54,767,234	28%	63,333,445	47,950,386	32%
Cost of Sales	(47,286,906)	(31,431,879)	(50%)	(47,278,528)	(31,734,452)	(49%)
Direct Interest Cost	(4,787,602)	(4,463,098)	(7%)	-	-
Gross Profit	17,898,934	18,872,257	(5%)	16,054,917	16,215,934	(1%)
Other Income	345,057	248,027	39%	190,775	209,990	(9%)
Selling and Administrative Expenses	(14,806,345)	(12,614,476)	(17%)	(12,238,592)	(10,293,170)	(19%)
Impairment (Loss)/Reversal on Trade and Other Receivables	(300,236)	181,961	(265%)	(427,199)	140,085	(405%)
Operating Profit	3,137,410	6,687,769	(53%)	3,579,901	6,272,839	(43%)
Finance Cost	(4,722,053)		(7,271,615)	35%	(4,627,384)	(6,648,491)	30%
Finance Income	2,320,152		1,152,751	101%	1,005,999	385,016	161%
Net Finance Cost	(2,401,901)	(6,118,864)	61%	(3,621,385)	(6,263,475)	42%
Value Added Tax on Financial Services	(396,856)	(394,713)	(1%)	(77,000)	(78,000)	1%
Profit /( Loss) Before Tax	338,653	174,192	94%	(118,484)	(68,636)	(73%)
Income Tax Expense	(429,952)	(78,261)	(449%)	(179,217)	289,235	(162%)
Profit /(Loss) for the Period	(91,299)	95,931	(195%)	(297,701)	220,599	(235%)
Other Comprehensive Income
Other Comprehensive Income Items that will not be
Reclassified to Profit or Loss
Revaluation of Land & Building	724,044	-		724,044	-
Income Tax Rate Change impact on Revaluation of Property, Plant
and Equipment	-	(314,863)		-	(77,506)
Actuarial Gain / (Loss) on Remeasurement of Defined Benefit
Obligation	(56,955)	115,793		(66,535)	85,305
Equity Investments at FVOCI - Change in Fair Value	(1,319)	745		(1,384)	(1,334)
Related Taxes :
Deferred Tax on Other Comprehensive Income	(199,678)	(34,065)		(196,804)	(25,191)
Other Comprehensive Income for the Year, Net of Tax	466,092	(232,390)		459,321	(18,726)
Total Comprehensive Income for the Period, Net of Tax	374,793	(136,459)		161,620	201,873
Profit / (Loss) Attributable to -
Owners of the Company	(159,812)	7,082		(297,701)	220,599
Non - Controlling Interests	68,513	88,849		-	-
Profit / (Loss) for the Period	(91,299)	95,931		(297,701)	220,599
Total Comprehensive Income Attributable to -
Owners of the Company	303,825	(177,538)		161,620	201,873
Non - Controlling Interests	70,968	41,079		-	-
Total Comprehensive Income for the Period Net of Tax	374,793	(136,459)		161,620	201,873
Basic / Diluted Earnings Per Share (Rs.)	(0.14)	0.01		(0.26)	0.20
Above figures are provisional and subject to audit.
Share Prices			For the Twelve Months	For the Twelve Months
		ended 31st March 2024	ended 31st March 2023
				Rs.		Rs.
Highest				17.50		15.70
Lowest				10.90		7.40
Last Traded Price				16.10		15.00

2 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Twelve Months ended 31st March

Statement of Profit or Loss and Other Comprehensive Income

		Group			Company
For the Three Months ended 31st March	2024	2023	Change	2024	2023	Change
	Rs. '000	Rs. '000	%	Rs. '000	Rs. '000	%
Revenue	16,147,240	13,001,026	24%	14,395,910	11,254,928	28%
Cost of Sales	(10,173,814)	(8,603,771)	(18%)	(10,206,483)	(8,664,087)	(18%)
Direct Interest Cost	(1,112,089)	(1,118,676)	1%	-	-
Gross Profit	4,861,337	3,278,579	48%	4,189,427	2,590,841	62%
Other Income	149,214	64,232	132%	22,402	19,534	15%
Selling and Administrative Expenses	(3,914,682)	(3,333,850)	(17%)	(3,157,988)	(2,642,680)	(20%)
Impairment Reversal on Trade and Other Receivables	56,546	396,002	(86%)	6,952	313,133	(98%)
Operating Profit	1,152,415	404,963	185%	1,060,793	280,828	278%
Finance Cost	(991,189)	(1,563,985)	37%	(977,554)	(1,570,423)	38%
Finance Income	631,747	362,714	74%	362,214	132,447	174%
Net Finance Cost	(359,442)	(1,201,271)	70%	(615,340)	(1,437,976)	57%
Value Added Tax on Financial Services	(124,027)	(128,715)	4%	(23,000)	(14,000)	(64%)
Profit/(Loss)Before Tax	668,946	(925,023)	172%	422,453	(1,171,148)	136%
Income Tax (Expense ) / Reversal	(282,447)	167,862	(268%)	(177,367)	355,248	(150%)
Profit/(Loss)for the Period	386,499	(757,161)	151%	245,086	(815,900)	130%
Other Comprehensive Income
Other Comprehensive Income Items that will not be Reclassified
to Profit or Loss
Revaluation of Land & Building	724,044	-		724,044	-
Income Tax Rate Change impact on Revaluation of Property, Plant
and Equipment	-	(13,426)		-	(12,534)
Actuarial Gain / (Loss) on Remeasurement of Defined Benefit
Obligation	(56,955)	115,793		(66,535)	85,305
Equity Investments at FVOCI - Change in Fair Value	(1,319)	745		(1,384)	(1,334)
Related Taxes:
Deferred Tax on Other Comprehensive Income	(199,678)	(34,065)		(196,804)	(25,191)
Other Comprehensive Income for the Period, Net of Tax	466,092	69,047		459,321	46,246
Total Comprehensive Income for the Period, Net of Tax	852,591	(688,114)		704,407	(769,654)
Profit Attributable to -
Owners of the Company	361,738	(780,545)		245,086	(815,900)
Non - Controlling Interests	24,761	23,384		-	-
Profit for the Period	386,499	(757,161)		245,086	(815,900)
Total Comprehensive Income Attributable to -
Owners of the Company	825,375	(717,503)		704,407	(769,654)
Non - Controlling Interests	27,216	29,389		-	-
Toal Comprehensive Income for the Period Net of Tax	852,591	(688,114)		704,407	(769,654)
Basic / Diluted Earnings Per Share (Rs.)	0.32	(0.69)		0.22	(0.72)
Above figures are provisional and subject to audit.
Share Prices	For the three Months ended	For the three Months ended
		31st March 2024	31st March 2023
			Rs.		Rs.
Highest			16.40		15.70
Lowest			11.90		8.20
Last Traded Price			16.10		15.00

SINGER (SRI LANKA) PLC

3

Interim Financial Statements For the Twelve Months ended 31st March

Statement of Financial Position

	Group		Company
As at	31st March	31st March	31st March	31st March
	2024	2023	2024	2023
	Rs.'000	Rs.'000	Rs.'000	Rs.'000
ASSETS
Non-Current Assets
Property, Plant and Equipment	8,142,751	7,652,258	7,138,161	3,852,273
Right -of- Use Assets	4,819,975	4,469,010	4,071,277	3,788,867
Intangible Assets	504,399	521,068	406,818	408,576
Investment in Subsidiaries	-	-	1,760,085	2,963,023
Other Investments	22,326	23,645	20,141	21,524
Trade and Other Receivables	10,690,226	7,773,775	822,170	737,681
Deferred Tax Assets	710,812	1,485,221	613,823	1,371,082
	24,890,489	21,924,977	14,832,475	13,143,026
Current Assets	21,600,921	20,227,338	21,207,436	17,928,926
Inventories
Loans due from Related Parties	-	-	-	268,000
Income Tax Receivables	324,833	502,200	324,833	480,658
Trade and Other Receivables	37,787,515	28,236,228	19,579,887	10,659,760
Amounts Due from Related Parties	105,097	91,133	146,420	154,824
Financial Assets at FVTPL	463,761	-	-	-
Deposits with Banks	702,898	1,413,997	448,875	-
Short term Investments	2,478,591	2,013,992	-	-
Cash and Cash Equivalents	5,488,327	4,388,050	1,658,031	1,829,445
	68,951,943	56,872,938	43,365,482	31,321,613
Total Assets	93,842,432	78,797,915	58,197,957	44,464,639
EQUITY AND LIABILITIES
Equity
Stated Capital	1,138,857	626,048	1,138,857	626,048
Other Components of Equity	3,328,109	1,600,272	2,948,947	1,202,737
Revenue Reserves	6,930,271	7,916,760	4,236,740	4,818,730
Total Equity Attributable to Owners of the Company	11,397,237	10,143,080	8,324,544	6,647,515
Non-Controlling Interest	1,046,509	1,946,904	-	-
Total Equity	12,443,746	12,089,984	8,324,544	6,647,515
Non-Current Liabilities
Interest - Bearing Loans and Borrowings	8,405,000	10,242,000	6,200,000	7,550,000
Lease Liability	4,524,408	4,229,569	3,770,974	3,603,078
Employee Benefit Obligations	1,229,148	1,060,341	1,058,874	724,718
Security Deposits	1,560,728	1,468,392	1,560,728	1,468,392
Deferred Tax Liability	76,558	741,265	-	-
Other Financial Liabilities	3,252,235	5,844,248	-	-
Deferred Revenue	74,363	76,231	74,363	76,231
Other Non - Current Liabilities	180,162	188,342	180,162	188,342
	19,302,602	23,850,388	12,845,101	13,610,761
Current Liabilities
Trade and Other Payables	12,165,880	7,123,531	11,110,413	6,055,831
Deferred Revenue	362,594	216,230	362,544	216,165
Dividends Payable	59,729	64,143	49,083	49,183
Amounts Due to Related Parties	1,527,754	829,668	2,144,825	1,231,688
Income Tax Payable	108,185	269,241	-	-
Other Financial Liabilities	18,927,276	13,351,357	-	-
Lease Liability	1,084,239	1,024,003	974,538	907,649
Interest - Bearing Loans and Borrowings	25,312,181	18,399,811	20,377,748	14,271,246
Bank Overdrafts	2,548,247	1,579,559	2,009,161	1,474,601
	62,096,085	42,857,543	37,028,312	24,206,363
Total Liabilities	81,398,687	66,707,931	49,873,413	37,817,124
Total Equity and Liabilities	93,842,432	78,797,915	58,197,957	44,464,639
Net Assets per Share (Rs.)	9.76	9.00	7.13	5.90

I certify that the above Financial Statements comply with the requirements of the Companies Act No.07 of 2007.

(Sgd.)

Shalinka Seresinhe

Finance Director

Above figures are provisional and subject to audit.

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Signed for and on behalf of the Board by,

(Sgd.)	(Sgd.)
A.M. Pandithage	Mahesh Wijewardene
Chairman	Director/Group Chief Executive Officer
Colombo,
09th May 2024

4 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Twelve Months ended 31st March

Statement of Changes in Equity

For the Twelve Months ended 31st March

Group

			Attributable to equity holders of the Company
Stated	Other Components of Equity		Revenue Reserves	Total	Non	Total
Capital								-Controlling	Equity
Statutory	Regulatory	Revaluation	Fair Value	General	Retained
		Interest
	Reserve	Loss	Reserves	of Financial	Reserves	Earnings
		Allowance		Assets
		Reserve		at FVOCI
				Reserve

	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000
Balance as at 31st March 2022	626,048	223,763	-	1,635,092	4,437	2,700,000	6,380,204	11,569,544	1,971,082	13,540,626
Charge Relating to surcharge Tax	-	-		-	-	-	(1,023,548)	(1,023,548)	(32,808)	(1,056,356)
Adjusted Balance as at 1st April 2022	626,048	223,763	-	1,635,092	4,437	2,700,000	5,356,656	10,545,996	1,938,274	12,484,270
Realisation of Revaluation Surplus	-	-	-	(23,485)	-	-	23,485	-	-	-
Transferred to/(from) during the year	-	20,452	-	-	-	-	(20,452)	-	-	-
Profit for the Period	-	-	-	-	-	-	7,082	7,082	88,849	95,931
Other Comprehensive Income								-		-
Actuarial Gain on Employee Benefit Obligations	-	-	-	-	-	-	107,440	107,440	8,352	115,792
Fair Value Change in Equity instruments designated at
fair value through other comprehensive income	-	-	-	-	328	-	-	328	417	745
Related Taxes
Income Tax rate change impact on revaluation of
Land and Buildings	-	-	-	(260,715)	-	-	-	(260,715)	(54,148)	(314,863)
Deferred Tax on Actuarial gain on Employee Benefit
Obligations	-	-	-	-	-	-	(32,074)	(32,074)	(2,391)	(34,465)
Deferred Tax on Fair Value Change in Equity
instruments designated at fair value
through Other Comprehensive Income	-	-	-	-	400	-	-	400	-	400
Total Other Comprehensive Income , Net of Tax	-	-	-	(260,715)	728	-	75,366	(184,621)	(47,770)	(232,391)
Total Comprehensive Income for the Year, Net of Tax	-	-	-	(260,715)	728	-	82,448	(177,539)	41,079	(136,460)
Transactions with Owners of the Company,
Recognised Directly in Equity
Distributions to Owners of the Company	-	-	-	-	-	-	-	-	-	-
Final Dividend - 2021/2022	-	-	-	-	-	-	(225,377)	(225,377)	(32,449)	(257,826)
Total Distributions to Owners of the Company	-	-	-	-	-	-	(225,377)	(225,377)	(32,449)	(257,826)
Balance at 31st March 2023	626,048	244,215	-	1,350,892	5,165	2,700,000	5,216,760	10,143,080	1,946,904	12,089,984
Realisation of Revaluation Surplus	-	-		(28,231)	-	-	28,231	-	-	-
Transferred to/(from) during the period	-	81,079	51,094				(132,173)	-		-
Profit / (Loss) for the period	-	-	-	-	-	-	(159,813)	(159,813)	68,513	(91,299)
Other Comprehensive Income
Revaluation gain on Land & building	-	-	-	724,044	-	-	724,044	724,044	-	724,044
Actuarial Loss on Employee Benefit Obligations							(60,443)	(60,443)	3,488	(56,955)
Fair Value Change in Equity instruments designated
at fair value through other comprehensive income					(272)			(272)	(1,047)	(1,319)
Related Taxes
Deferred Tax on Revaluation of Land & building	-	-	-	(217,179)	-	-	(217,179)	(217,179)	-	(217,179)
Deferred Tax on Actuarial Loss on Employee Benefit
Obligations							18,133	18,133	(1,047)	17,086
Deferred Tax on Equity Investments at FVOCI-
change in fair value					415			415	-	415
Total Other Comprehensive Income for the Year	-	-	506,864	-	143	-	(42,310)	464,697	1,395	466,092
Total comprehensive income for the year	-	-	506,864	-	143	-	(202,122)	304,885	69,908	374,793
Transactions with Owners of the Company,
Recognised Directly in Equity
Distributions to Owners of the Company
Final Dividend - 2022/23	-	-	-	-	-	-	-	-	(32,449)	(32,449)
New Share issue	512,809						-	512,809	-	512,809
Amalgamated Reserve				1,116,888			(680,425)	436,463	(937,854)	(501,391)
Balance at 31st March 2024	1,138,857	325,294	51,094	2,946,413	5,308	2,700,000	4,230,271	11,397,237	1,046,509	12,443,746

SINGER (SRI LANKA) PLC

5

Interim Financial Statements For the Twelve Months ended 31st March

Statement of Changes in Equity

For the Twelve Months ended 31st March Company

Stated	Other Components of	Revenue Reserves	Total
Capital	Equity			Equity
	Revaluation	Fair Value	General	Retained
	Reserves	of Financial	Reserves	Earnings
		Assets
		at FVOCI
		Reserve
Rs.000	Rs.000	Rs.000	Rs.000	Rs.000	Rs.000

Balance as at 31st March 2022	626,048	1,291,762	4,437	2,700,000	3,219,944	7,842,191
Charge Relating to surcharge Tax	-	-	-	-	(804,826)	(804,826)
Adjusted Balance as at 1st April 2022	626,048	1,291,762	4,437	2,700,000	2,415,118	7,037,365
Realisation of Revaluation Surplus	-	(15,022)	-	-	15,022	-
Profit for the period	-	-	-	-	220,599	220,599
Other Comprehensive Income
Actuarial Gain on Employee Benefit Obligations	-	-	-	-	85,305	85,305
Fair Value Change in Equity instruments designated at fair value
through other comprehensive income	-	-	(1,334)	-	-	(1,334)
Related Taxes
Income Tax rate change impact on revaluation of Land and Buildings	-	(77,506)	-	-	-	(77,506)
Deferred Tax on Actuarial Gain on Employee Benefit Obligations	-	-	-	-	(25,591)	(25,591)
Fair Value Change in Equity instruments designated at fair value through
other comprehensive income	-	-	400	-	-	400
Total Other Comprehensive Income , Net of Tax	-	(77,506)	(934)	-	59,714	(18,726)
Total Comprehensive Income for the Year, Net of Tax	626,048	1,214,256	3,503	2,700,000	2,695,431	7,239,238
Transactions with Owners of the Company, Recognised Directly in Equity
Final Dividend - 2021/2022	-	-	-	-	(225,377)	(225,377)
Total Distributions to Owners of the Company	-	-	-	-	(225,377)	(225,377)
Amalgamation- Singer Digital Media (Pvt) Ltd	-	-	-	-	(366,346)	(366,346)
Balance at 31st March 2023	626,048	1,199,234	3,503	2,700,000	2,118,730	6,647,515
Realisation on Revaluation Surplus	-	(16,388)	-	-	16,388	-
						-
Loss for the Period					(297,701)	(297,701)
Other Comprehensive Income
Revaluation gain on Land & building	-	724,044	-	-	-	724,044
Actuarial Loss on Employee Benefit Obligations	-	-	-	-	(66,535)	(66,535)
Fair Value Change in Equity instruments designated at fair value
through other comprehensive income	-	-	(1,384)	-	-	(1,384)
						-
Related Taxes						-
Deferred Tax on Revaluation of Land & building	-	(217,179)	-	-	-	(217,179)
Deferred Tax on Actuarial Loss on Employee Benefit Obligations	-	-	-	-	19,961	19,961
Deferred Tax on Equity Investments at FVOCI-change in fair value	-	-	415	-	-	415
Total Other Comprehensive Income for the Year	-	506,864	(969)	-	(46,575)	459,321
Total Comprehensive Income for the Year	-	506,864	(969)	-	(344,276)	161,620
Transactions with Owners of the Company, Recognised Directly in Equity
New Share issue	512,809	-	-	-	-	512,809
Amalgamated Reserve	-	1,256,702	-	-	(254,102)	1,002,600
Balance at 31st March 2024	1,138,857	2,946,412	2,534	2,700,000	1,536,740	8,324,544

6 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Twelve Months ended 31st March

STATEMENT OF CASH FLOWS

	Group		Company
For the Twelve Months ended 31st March	2024	2023	2024	2023
	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Cash Flows from/(used in) Operating Activities
Net Profit /(Loss) before Income Tax Expense	338,653	174,192	(118,484)	(68,636)
Adjustments for:
Depreciation on Property, Plant and Equipment	794,438	762,709	565,792	535,129
Amortization of Intangible Assets	56,844	55,548	39,390	36,164
Amortization of Right of Use Assets	1,006,629	1,010,707	863,921	884,177
Loss on Disposal of Property, Plant and Equipment	712	2,221	724	2,292
Interest Expense	4,722,053	6,328,642	4,627,384	5,801,184
Interest Income	(1,355,513)	(1,126,853)	(140,425)	(365,356)
Impairment / (Reversal ) of Inventories	158,883	371,854	(6,499)	282,120
Impairment on Trade and Other Receivables	300,236	(181,961)	427,199	(169,148)
Dividend Income	-	-	(109,829)	(129,210)
Provision for Retiring Gratuity	268,054	224,961	183,445	151,263
Operating Profit before Working Capital Changes	6,290,989	7,622,020	6,332,618	6,959,979
(Increase)/Decrease in Inventory	(1,532,466)	2,422,999	(1,114,414)	2,311,159
(Increase)/Decrease in Debtors falling Due after one Year	(3,216,688)	4,297,362	(511,688)	(394,460)
(Increase)/Decrease in Debtors falling Due within one year	(9,551,287)	7,376,463	(8,724,730)	8,331,089
(Increase) / Decrease in Dues from Related Parties	(13,964)	(42,876)	1,556,801	67,887
Increase/(Decrease) in Dues to Related Parties	698,085	(350,087)	(96,534)	(2,936,511)
Increase/(Decrease) in Security Deposits	(48,924)	6,045	(48,924)	12,842
Increase/(Decrease) in Trade and Other Payables	5,061,151	(12,075,603)	3,754,445	(7,653,526)
Increase / (Decrease) in Deferred Liabilities	144,497	(19,447)	144,512	(16,175)
Increase in ROU assets	(1,357,594)	(672,303)	(1,146,331)	(524,948)
Increase in Lease Creditors	1,479,311	673,339	1,170,896	510,594
Cash Generated from/(used in) Operations	(2,046,890)	9,237,912	1,316,652	6,667,930
Finance Costs Paid	(4,134,300)	(5,578,346)	(4,001,184)	(5,193,501)
Retiring Gratuity Paid	(156,938)	(89,979)	(115,933)	(68,997)
Income Tax Paid	(485,538)	(1,272,143)	(95,864)	(912,477)
Surcharge Tax Paid	-	(1,056,357)	-	(804,826)
Net Cash Flows from/(used in) Operating Activities	(6,823,666)	1,241,087	(2,896,329)	(311,871)
Cash Flows from /(used in ) Investing Activities
Acquisition of Property, Plant and Equipment and Intangible Assets	(620,958)	(927,757)	(354,543)	(589,881)
Proceeds from Disposal of Property Plant and Equipment	1,777	4,172	914	3,935
Cash Proceed from Amalgamation	-	-	20,272	(42,981)
Amount paid for Share buy back	(2,312)	-	(2,312)	-
Acquisition of Marketable Securities	(928,360)	(601,012)	-	-
Net Cashflows from Loans Given to Related Companies	-	-	268,000	(158,000)
Interest Received	1,355,513	1,126,853	94,497	365,356
Dividends Received	-	-	109,829	129,210
Net Cash Flows from/(used in) Investing Activities	(194,340)	(397,744)	136,657	(292,361)
Cash Flows from / (used in) Financing Activities
Net Proceeds From/(settlements to) Interest Bearing Loans and Borrowings	5,167,431	(3,824,261)	3,977,892	1,220,596
Net settlements to Lease Creditors	(1,662,195)	(1,534,744)	(1,475,219)	(1,322,777)
Increase in Customer Deposit Liabilities	2,983,907	7,049,091	-	-
Dividends Paid	(50,648)	(284,658)	(100)	(244,164)
Net Cash Flows from/(used in) Financing Activities	6,438,495	1,405,428	2,502,573	(346,345)
Net Increase/(Decrease) in Cash and Cash Equivalents	(579,511)	2,248,772	(257,099)	(950,576)
Cash and Cash Equivalents at the Beginning of the Year	4,222,489	1,973,716	354,844	1,305,420
Cash and Cash Equivalents as at the end of the year	3,642,978	4,222,488	97,745	354,844
ANALYSIS OF CASH & CASH EQUIVALENTS
Favourable balances
Fixed deposit	702,898	1,413,997	448,875	-
Cash in hand and at bank	5,488,327	4,388,050	1,658,031	1,829,445
Unfavourable balances
Bank overdrafts	(2,548,247)	(1,579,559)	(2,009,161)	(1,474,601)
	3,642,978	4,222,488	97,745	354,844

SINGER (SRI LANKA) PLC

7

Interim Financial Statements For the Twelve Months ended 31st March

Notes to the Financial Statements

1. BASIS OF PREPARATION AND GROUP'S ACCOUNTING POLICIES
   The interim condensed consolidated financial statements for theTwelve months ended 31st March 2024 have been prepared in accordance with LKAS 34 Interim Financial Reporting.
   The Financial Statements for the period ended 31st March 2024, includes "the Company" referring to Singer (Sri Lanka) PLC, as the holding company and "the Group" referring to the companies whose accounts have been consolidated therein.
   As per the company's accounting policies, amalgamation of two entities under common control is accounted by adding assets and liabilities as at the amalgamated date to the controlling entity and directly recognizing the excess in Statement of Changes in Equity as amalgamated reserve. No restatement is done to the comparative financials and controlling entity's current year statements of financial position will carry both entities assets and liabilities. The Consolidated Financial performance and financial position did not require restatement given that the Group structure existed even prior to amalgamation.
   The interim condensed Consolidated Financial Statements do not include all the information and disclosures required in the Annual Financial
   Statements, and should be read in conjunction with the Group's Annual Consolidated Financial Statements as at 31 March 2023
   The presentation and classification of the Financial Statements of the previous period have been amended, where relevant, for better presentation and to be comparable with those of the current period.
   The interim Condensed Financial Statements are presented in Sri Lankan Rupees (LKR) and all values are rounded to the nearest thousand except when otherwise indicated
2. Amalgamation of Regnis (Lanka) PLC, Singer Industries (Ceylon) PLC with Singer (Sri Lanka) PLC
   The Board of Directors of Singer (Sri Lanka) PLC , Regnis (Lanka) PLC and Singer Industries (Ceylon) PLC decided to amalgamate its subsidiaries, Regnis (Lanka) PLC and Singer Industries (Ceylon) PLC with Singer (Sri Lanka) PLC (The Company) at the board meetings held on the 07th of November 2023 , and share holder approval for the amalgamation was received at the Extra Ordinary General Meetings of the three companies held on the 18th of January 2024.
   The amalgamation was effective from 31 January 2024.
   The values in the books of Regnis (Lanka) PLC , Singer Industries (Ceylon) PLC and Singer (Sri Lanka) PLC were amalgamated and the investment in subsidiaries of Rs. 1.4 billion recorded in the Company was set off against the equity of Regnis (Lanka) PLC and Singer Industries (Ceylon) PLC and the excess was debited to the amalgamation reserve in equity.
3. Fair Value measurement and related fair value disclosures - Financial Instruments

	Group		Company
1.2	2024		2023	2024	2023	Level
	Rs. '000	Rs."000"	Rs. '000	Rs."000"
Recurring Fair Value Measurements	22,326		23,645	20,141	21,524	3	Financial Assets at FVOCI
Investment in Equity Securities	22,326		23,645	20,141	21,524

1.3 Impact of Recent Economic Conditions

The Directors are continuously monitoring the existing and the anticipated effects from the external environment, as well as the resulting consequences to the company in order to take appropriate measures to manage the impact.

(i) Changes in interest rates

LKR interest rates significantly declined during the quarter ended March 31, 2024 with the policy measures adopted by CBSL

The following measures were taken to reduce the impact of interest Cost ;

• Minimised borrowings by reducing credit periods offered to the customers whilst encouraging advance payments, thereby improving the liquidity of the company
• Continuous control and monitoring measures taken to improve the recoveries from debtors to reduce the borrowings
• Strategic initiatives driven by the management to prioritise essential capital expenditure
• A focused effort to reduce old inventory thereby reducing borrowings

8 SINGER (SRI LANKA) PLC

Interim Financial Statements For the Twelve Months ended 31st March

Notes to the Financial Statements

(ii) Fluctuation of foreign currency and significant rupee appreciation

The LKR/USD continues to be at 300 levels due to the prudent policy measures adopted by CBSL, along with the resultant decline in importer demand and improvement of the Balance of Payment of the country. The appreciation of Rupee during the quarter, adversely affected export companies to be competitive in the international market place, given the tax amendments, high cost of operations and inflation. However, we envisage the cost adjustments will ease the immediate challenges in the months to come. Further, Government initiatives to lighten import restrictions and floating of exchange rates might result in some volatilities in the months ahead.

The following measures were taken to reduce the impact of a volatile exchange rate;

• Implemented prudent strategies to revise prices in a timely manner based on market outlook
• Entering into forward rate contracts to mitigate foreign currency risk wherever deemed necessary iii) Other Considerations

The VAT change implemented with effect from 01st January 2024 resulted in panic buying before the VAT hike in December 2023 , which may see a reduction in consumer demand in the short term.

The escalation of violence along the red sea will increase the price of products imported to the country and may see delays in receiving products in the near term.

Despite the current slowdown of the economy, the marketing and business development teams of the group continues to pursue new businesses to diversify the risk arising due to negative externalities, whilst the operational teams focus on improving production efficiencies and reducing costs in order to increase the gross profit margins.

2.0 Segmental Analysis of Company Net Turnover is as follows:

		Three months ended		Three months ended		Twelve Months ended		Twelve Months ended
			31st March 2024		31st March 2023		31st March 2024		31st March 2023
			Rs. '000	Rs'000	Rs. '000	Rs'000
Consumer Electronics	1,572,999		715,313		6,321,970		4,357,666
Financial Services	1,272,242		948,653		4,605,866		3,204,682
Furniture	959,855		942,008		3,925,670		4,147,511
Home Appliances	6,150,298		4,203,612		22,216,278		18,783,398
IT products	2,745,873		3,787,128		17,563,584		11,768,846
Sewing Machines	502,259		477,236		2,126,636		2,510,590
Other	1,192,384		180,978		6,573,441		3,177,693
		14,395,910		11,254,928		63,333,445		47,950,386
2.1 Segmental Analysis of Company Profit / (Loss) Before Tax is as follows:
			Three Months ended	Three Months ended	Twelve Months ended	Twelve Months ended
			31st March 2024	31st March 2023	31st March 2024	31st March 2023
			Rs. '000	Rs'000	Rs. '000	Rs'000
Consumer Electronics	156,146	(155,409)	478,810	537,538
Financial Services	228,258	97,264	942,681	762,033
Furniture	37,212	(65,612)	149,070	373,744
Home Appliances	485,414	190,640	1,360,479	2,718,288
IT products	81,867	(8,870)	657,615	1,050,483
Sewing Machines	39,633	(29,616)	155,691	212,662
Other	25,311	(60,702)	152,925	348,796
Intercompany Dividend	-	-	109,829	129,210
Impairment (Loss)/Reversal on Trade and
Other Receivables	6,952	313,133	(427,199)	140,085
Operating Profit	1,060,793	280,828	3,579,901	6,272,839
Net Finance Cost	(615,340)	(1,437,976)	(3,621,385)	(6,263,475)
VAT on Financial Services	(23,000)	(14,000)	(77,000)	(78,000)
Profit/(Loss) Before Tax	422,453	(1,171,148)	(118,484)	(68,636)

SINGER (SRI LANKA) PLC

9

Interim Financial Statements For the Twelve Months ended 31st March

Notes to the Financial Statements

2.2 Segmental Analysis of Group Net Turnover is as follows:

	Three months ended		Three months ended		Twelve Months ended		Twelve Months ended
		31st March 2024		31st March 2023		31st March 2024		31st March 2023
		Rs. '000	Rs'000	Rs. '000	Rs'000
Consumer Electronics	1,572,999		715,313		6,321,970			4,357,666
Financial Services	3,019,892		2,687,491		11,202,466			9,653,108
Furniture	959,855		942,008		3,925,670			4,147,511
Home Appliances	6,153,912		4,184,204		22,235,766			18,225,925
IT products	2,745,873		3,806,614		17,563,584			12,728,128
Sewing Machines	502,325		477,825		2,127,101			2,453,122
Other	1,192,385		187,570		6,596,886			3,201,773
	16,147,240		13,001,026		69,973,442			54,767,234
2.3 Segmental Analysis of Group Profit /(Loss) Before Tax is as follows:
		Three Months ended	Three Months ended	Twelve Months ended	Twelve Months ended
		31st March 2024	31st March 2023	31st March 2024	31st March 2023
		Rs. '000	Rs'000	Rs. '000	Rs'000
Consumer Electronics	156,146	(155,409)	478,810	537,538
Financial Services	245,110	149,330	526,507	832,515
Furniture	37,212	(65,612)	149,070	373,744
Home Appliances	521,906	154,352	1,439,429	3,068,875
IT Products	81,867	(10)	657,615	1,064,554
Sewing Machines	27,173	(18,295)	14,595	260,847
Other	26,456	(55,394)	171,621	367,496
Dividend	-	-	-	240
Impairment Loss on Trade and Other
Receivables	56,546	396,002	(300,236)	181,961
Operating Profit	1,152,415	404,963	3,137,410	6,687,769
Net Finance Cost	(359,442)	(1,201,271)	(2,401,901)	(6,118,864)
VAT on Financial Services	(124,027)	(128,715)	(396,856)	(394,713)
Profit/(Loss) Before Tax	668,946	(925,023)	338,653	174,192
3 STATED CAPITAL
3.1
							31st March 2024			31st March 2023
Value-Ordinary Shares (Rs.)							1,138,856,653			626,048,050
Number of Ordinary Shares							1,167,617,912			1,126,886,490
Voting Rights							One Vote per Ordinary	One Vote per Ordinary
							Share	Share

10 SINGER (SRI LANKA) PLC