Cargills Ceylon : For the Six Months Ended 30th September 2023

CARGILLS (CEYLON) PLC

Condensed Interim Financial Statements

For the Six Months Ended

30th September 2023

CONTENTS

Management Review	01
Statement of Profit or Loss and Other Comprehensive Income - Group	02
Statement of Profit or Loss and Other Comprehensive Income - Company	03
Statement of Financial Position	04
Statement of Changes in Equity	05
Statement of Cash Flows	06
Segment Information	07
Explanatory Notes	08
Investor Relations Supplement	09
Corporate Information	IBC

Management Review

Period ending 30th September 2023

Cargills (Ceylon) PLC is pleased to announce the consolidated financial results for the six months ended 30 September 2023. The Group recorded revenue of Rs. 112,333 Mn (increase of 16% YoY), an operating profit of Rs. 7,667 Mn (increase of 17% YoY) and a Profit Before Tax of Rs. 4,927 Mn (increase of 24% YoY) for the six months ended 30 September 2023. For the three months ended 30 September 2023, the Group recorded a revenue of Rs. 55,580 Mn (increase of 13% YoY), an operating profit of Rs. 3,755 Mn (increase of 7% YoY) and a Profit Before Tax of Rs. 2,431 Mn (increase of 28% YoY).

The period under review saw a noticeable decline in prices of goods and services due to improved local and global supply chain conditions, stability in the exchange rate, and relaxed import restrictions. Inflation has now reached low to mid-single digits, partly a result of the higher statistical base effect from the previous year. Despite a decline in prices, demand has been sluggish and the pickup in volumes have not been significant, indicating the persisting impacts of higher taxes and higher utility and energy prices faced by consumers. Though the easing of monetary policy should support a pickup in consumption, we expect the demand recovery to take further time as prices are expected to see an uptick in the coming months due to planned upward adjustments to the electricity tariffs and the proposed increase of the Value Added Tax (VAT) to 18% from the current 15%. Furthermore, some products which were previously exempt from VAT will be subject to VAT from 1st of January 2024. While some of these steps are necessary to bridge the deficit in the Government's fiscal position, it will pose further challenges to consumers and industry in the coming months. Another revision to electricity prices, which have been revised upwards twice over the last 12 months, will impact the cost of production across industries and add pressure on consumer prices.

The Management took a strategic decision at the start of the Financial Year 2023/24 to withhold any cost increases to the consumer. As a consequence, we have reduced prices of key SKUs and kept prices constant for the remaining SKUs in our FMCG portfolio. This decision has supported a recovery in volumes during Q1 and Q2 across most of the categories in our FMCG brands. Dairy, Food & Beverages, and Processed Meats have seen a pickup in volumes, though Confectionery still lags behind, showing a slow recovery from the steep price increases taken in 2022. Similarly, we have seen transactions grow in our restaurant business, driven by value for money offerings to customers. We are pleased to note that KFC has maintained its position as the most affordable brand within the Quick Service Restaurant sector in Sri Lanka. The Retail sector saw broad-based volume growth across categories during Q2, even though Q1 recorded a volume contraction compared to the previous year.

The Management has focused on driving productivity improvements across the company to mitigate the impacts of rising cost and to pass cost savings to customers. We are pleased to have supported our customers during this challenging period by restricting price increases and remain committed to bringing further improvements to operations to drive efficiency gains, reduce cost, and pass the benefits to the consumer, while improving profitability of the Group.

We have taken a cautiously optimistic approach to expansion during the period under review, due to uncertainty in the operating environment, high borrowing costs, and rising cost pressures. We opened 2 new KFC restaurants during the last six months and plan to add a further 8 more within the Financial Year. KFC currently has 64 restaurants across the country. In Retail, we added 11 new stores during the last six months, including the 2nd Cargills Foodhall at the Havelock City mall to provide customers with a unique gourmet shopping experience. The Cargills Square shopping and entertainment malls in Katubedda and Bandarawela were opened in May and August, respectively, offering new entertainment options for the youth in these regions. The expansions to the cheese plant in Hatton and the smallgoods processing facility in Ja-ela to introduce a new halaal range of products will be commissioned in the coming months, further supporting the growth of our FMCG business. The Group will continue to make selective investments which will strengthen the community, drive value and convenience for consumers, and provide better returns for shareholders.

01

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 30

September

2023

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	For the three months ended 30 September	For the six months ended 30 September
Group	Rs. '000 2023	Rs. '000 2022	Change %	Rs. '000 2023	Rs. '000 2022	Change %
Revenue	55,579,889	49,206,388	12.95	112,333,357	97,180,892	15.59
Cost of sales	(49,100,871)	(43,618,025)	(12.57)	(99,304,950)	(86,362,300)	(14.99)
Gross profit	6,479,018	5,588,363	15.94	13,028,407	10,818,592	20.43
Other income	579,229	667,812	(13.26)	1,126,975	1,219,067	(7.55)
Distribution expenses	(1,782,841)	(1,630,100)	(9.37)	(3,476,822)	(2,983,503)	(16.53)
Administrative expenses	(1,520,635)	(1,105,344)	(37.57)	(3,011,668)	(2,526,807)	(19.19)
Results from operating activities	3,754,771	3,520,731	6.65	7,666,892	6,527,349	17.46
Finance income	414,455	188,628	119.72	692,971	467,308	48.29
Finance cost	(1,796,636)	(1,751,900)	(2.55)	(3,533,755)	(2,929,984)	(20.61)
Net finance costs	(1,382,181)	(1,563,272)	11.58	(2,840,784)	(2,462,676)	(15.35)
Share of profit / (loss) of
equity accounted investees, net of tax	58,386	(54,320)	207.49	100,664	(77,474)	229.93
Profit/(loss) before taxation	2,430,976	1,903,139	27.74	4,926,772	3,987,199	23.56
Income tax expense	(857,139)	(507,549)	(68.88)	(1,656,346)	(1,040,503)	(59.19)
Profit/(loss) after tax before dividend tax expense	1,573,837	1,395,590	12.77	3,270,426	2,946,696	10.99
Tax effect of dividends paid to equity holders	-	(210,044)	100.00	(386,517)	(210,044)	(84.02)
Profit/(loss) for the period	1,573,837	1,185,546	32.75	2,883,909	2,736,652	5.38
Other comprehensive income (OCI)
Items that will not be reclassified to profit or loss
Share of other comprehensive income
in equity accounted investee, net of tax	123,654	1,812		185,724	(24,488)
Net change in fair value of FVOCI financial assets	1,744	57,671		(8,843)	68,059
Other comprehensive income for the
period, net of tax	125,398	59,483		176,881	43,571
Total comprehensive income for the period	1,699,235	1,245,029		3,060,790	2,780,223
Profit attributable to :
Equity shareholders of the parent	1,607,522	1,192,586		2,930,959	2,748,291
Non controlling interest	(33,685)	(7,040)		(47,050)	(11,639)
Profit/(loss) for the period	1,573,837	1,185,546		2,883,909	2,736,652
Total comprehensive income attributable to:
Equity shareholders of the parent	1,732,920	1,252,069		3,107,840	2,791,862
Non controlling interest	(33,685)	(7,040)		(47,050)	(11,639)
Total comprehensive income for the period	1,699,235	1,245,029		3,060,790	2,780,223
Basic Earnings per share (Rs.)	6.24	4.63		11.37	10.67
Diluted Earnings per share (Rs.)	6.24	4.63		11.37	10.67

Explanatory notes are given on page 8.

02

Cargills (Ceylon)

PLC

Condensed

Interim Financial

Statements 30

September 2023

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	For the three months ended 30 September	For the six months ended 30 September
Company	Rs. '000 2023	Rs. '000 2022	Change %	Rs. '000 2023	Rs. '000 2022	Change %
Revenue	-	161	(100.00)	8,194	11,308	(27.54)
Cost of sales	(261)	(408)	36.03	(8,244)	(11,311)	27.12
Gross profit	(261)	(247)	(5.67)	(50)	(3)	(1,566.67)
Other income	636,994	1,970,653	(67.68)	3,458,093	2,388,749	44.77
Administrative expenses	(515,381)	(420,194)	(22.65)	(1,034,273)	(792,305)	(30.54)
Results from operating activities	121,352	1,550,212	(92.17)	2,423,770	1,596,441	51.82
Finance income	417,385	207,934	100.73	699,975	348,953	100.59
Finance cost	(555,346)	(412,426)	(34.65)	(1,015,228)	(681,942)	(48.87)
Net finance costs	(137,961)	(204,492)	32.53	(315,253)	(332,989)	5.33
Profit/(loss) before taxation	(16,609)	1,345,720	(101.23)	2,108,517	1,263,452	66.89
Income tax expense	(65,804)	(59,820)	(10.00)	(62,199)	(34,432)	(80.64)
Profit/(loss) after tax before dividend tax expense	(82,413)	1,285,900	(106.41)	2,046,318	1,229,020	66.50
Tax effect of dividends paid to equity holders	-	(175,034)	100.00	-	(175,034)	100.00
Profit/(loss) for the period	(82,413)	1,110,866	(107.42)	2,046,318	1,053,986	94.15
Other comprehensive income (OCI)
Items that will not be reclassified to profit or loss
Net change in fair value of FVOCI financial assets	1,744	57,671		(8,843)	68,059
Other comprehensive income for the

03

Cargills (Ceylon)

PLC

Condensed

Interim Financial

Statements 30

September 2023

period, net of tax	1,744	57,671	(8,843)	68,059
Total comprehensive income for the period	(80,669)	1,168,537	2,037,475	1,122,045
Basic Earnings per share (Rs.)	(0.32)	4.31	7.94	4.09
Diluted Earnings per share (Rs.)	(0.32)	4.31	7.94	4.09

Explanatory notes are given on page 8.

STATEMENT OF

FINANCIAL

POSITION

Explanatory notes are given on page 8.

I certify that the financial statements have been prepared in accordance with the requirements of the Companies Act No. 7 of 2007.

(Signed.)

Dilantha Jayawardhana

Executive Director

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Signed on behalf of the Board

(Signed.)	(Signed.)
Ranjit Page	Imtiaz Abdul Wahid

Deputy Chairman / Group Managing

Group CEO

Director / Deputy CEO

01 November 2023

Colombo

	GROUP		COMPANY
As at	30 September 2023	31 March 2023	30 September 2023	31 March 2023
Rs. '000	Rs. '000	Rs. '000	Rs. '000
Assets
Non-current assets
Property, plant and equipment	45,713,818	46,922,982	3,434,867	3,461,947
Right of use asset	21,456,044	20,641,258	977,354	1,016,611
Investment property	9,906,433	7,342,566	3,297,596	3,293,903
Intangible assets	1,546,097	1,582,713	127,116	145,907
Investment in subsidiaries	-	-	5,975,269	5,960,269
Investment in equity accounted investees	4,650,649	4,364,261	4,717,843	4,717,843
Other financial assets	1,561,100	1,569,942	1,560,619	1,569,461
Prepayment on leasehold land and buildings	-	200,912	-	-
Biological assets	23,789	23,873	-	-
Deferred tax assets	36,521	27,829	-	-
Total non-current assets	84,894,451	82,676,336	20,090,664	20,165,941
Current assets
Inventories	21,144,230	22,872,826	-	7,646
Biological assets	71,771	33,681	-	-
Trade and other receivables	12,285,811	9,851,088	1,113,285	683,722
Amounts due from related companies	420,875	391,668	5,344,244	4,007,984
Other financial assets	128,304	119,667	-	-
Cash and cash equivalents	8,795,468	4,841,416	570,648	7,933
Total current assets	42,846,459	38,110,346	7,028,177	4,707,285
Total assets	127,740,910	120,786,682	27,118,841	24,873,226
Equity
Stated capital	6,841,068	6,841,068	6,841,068	6,841,068
Reserves	6,700,112	6,708,955	359,470	368,313
Retained earnings	14,453,593	13,527,172	4,527,531	4,671,475
Total equity attributable to equity holders of the company	27,994,773	27,077,195	11,728,069	11,880,856
Non-controlling interest	3,793,562	3,840,612	-	-
Total equity	31,788,335	30,917,807	11,728,069	11,880,856
Liabilities
Non-current liabilities
Interest bearing loans and borrowings	2,822,611	4,114,873	1,814,569	2,789,844
Lease liability	23,299,527	22,921,256	932,438	962,697
Deferred tax liability	1,125,897	1,337,651	475,528	484,151
Capital grants	-	4,493	-	-
Employee benefit liabilities	1,981,519	1,833,667	788,257	726,702
Total non-current liabilities	29,229,554	30,211,940	4,010,792	4,963,394
Current liabilities
Trade and other payables	25,079,427	27,936,283	408,810	564,587
Current tax liabilities	6,258,354	5,954,905	352,017	417,017
Amounts due to related companies	77,738	6,407	73,415	1,286
Dividend payable	101,278	78,673	101,278	78,673
Interest bearing loans and borrowings	33,807,936	24,342,847	10,396,969	6,932,669
Lease liability	1,398,288	1,337,820	47,491	34,744
Total current liabilities	66,723,021	59,656,935	11,379,980	8,028,976
Total liabilities	95,952,575	89,868,875	15,390,772	12,992,370
Total equity and liabilities	127,740,910	120,786,682	27,118,841	24,873,226
Net Assets value per share (Rs.)	108.64	105.08	45.51	46.11

04

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 30

September

2023

STATEMENT OF CHANGES IN EQUITY

Group	Stated	Capital	Revaluation	FVOCI	Employee	Retained	Non-	Total
Capital	Reserve	Reserve	Reserve	Share Option	Earnings	Controlling
	Rs. '000	Rs. '000			Reserve		Interest
	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000
Balance as at 1 April 2022	6,841,068	7,928	7,013,019	7,965	72,482	11,552,781	3,626,272	29,121,515
Charges relating to surcharge tax	-	-		-	-	(1,067,152)	(1,367)	(1,068,519)
Adjusted balance as at 1 April 2022	6,841,068	7,928	7,013,019	7,965	72,482	10,485,629	3,624,905	28,052,996
Profit for the period	-	-	-	-	-	2,748,291	(11,639)	2,736,652
Other comprehensive income	-	-	-	68,059	-	(24,488)	-	43,571
Total comprehensive income	-	-	-	68,059	-	2,723,803	(11,639)	2,780,223
Transactions with owners of the company, recognised directly in equity
Dividends	-	-	-	-	-	(1,288,389)	-	(1,288,389)
Balance as at 30 September 2022	6,841,068	7,928	7,013,019	76,024	72,482	11,921,043	3,613,266	29,544,830
Balance as at 1 April 2023	6,841,068	7,928	6,649,336	51,691	-	13,527,172	3,840,612	30,917,807
Profit for the period	-	-	-	-	-	2,930,959	(47,050)	2,883,909
Other comprehensive income	-	-	-	(8,843)	-	185,724	-	176,881
Total comprehensive income	-	-	-	(8,843)	-	3,116,683	(47,050)	3,060,790
Transactions with owners of the company, recognised directly in equity
Dividends	-	-	-	-	-	(2,190,262)	-	(2,190,262)
Balance as at 30 September 2023	6,841,068	7,928	6,649,336	42,848	-	14,453,593	3,793,562	31,788,335
Company			Stated	Revaluation	FVOCI	Employee	Retained	Total
		Capital	Reserve	Reserve	Share Option	Earnings
			Rs. '000	Rs. '000		Reserve
			Rs. '000	Rs. '000	Rs. '000	Rs. '000
Balance as at 1 April 2022			6,841,068	420,431	6,364	72,482	5,261,395	12,601,740
Profit for the period			-	-	-	-	1,053,986	1,053,986
Other comprehensive income			-	-	68,059	-	-	68,059
Total comprehensive income			-	-	68,059	-	1,053,986	1,122,045
Transactions with owners of the company, recognised directly in equity
Dividends			-	-	-	-	(1,288,389)	(1,288,389)
Balance as at 30 September 2022			6,841,068	420,431	74,423	72,482	5,026,992	12,435,396
Balance as at 1 April 2023			6,841,068	318,430	49,883	-	4,671,475	11,880,856
Profit for the period			-	-	-	-	2,046,318	2,046,318
Other comprehensive income			-	-	(8,843)	-	-	(8,843)
Total comprehensive income			-	-	(8,843)	-	2,046,318	2,037,475
Transactions with owners of the company, recognised directly in equity
Dividends			-	-	-	-	(2,190,262)	(2,190,262)
Balance as at 30 September 2023			6,841,068	318,430	41,040	-	4,527,531	11,728,069

05

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 30

September

2023

STATEMENT OF CASH FLOWS

	GROUP		COMPANY
For the six months ended 30 September	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022
Cash flows from operating activities
Profit before taxation	4,926,772	3,987,199	2,108,517	1,263,452
Adjustments for:
Depreciation on property, plant and equipment	2,259,634	1,891,514	35,033	33,252
Employee benefits	191,662	198,464	89,169	82,720
Amortisation of intangible assets	70,687	54,936	21,429	2,081
Amortisation of right of use assets	998,735	1,031,052	39,257	39,781
Amortisation of deferred income	(4,493)	(5,741)	-	-
Gain on sale of property, plant and equipment	(844)	(916)	-	(488)
Dividend income	(1,750)	(1,070)	(2,192,012)	(1,466,375)
Impairment of inventories	13,985	10,162	-	-
Impairment of trade receivables	11,193	11,370	-	-
Net finance costs	2,840,784	2,462,676	315,253	332,989
Share of (profit) / loss on equity accounted investees, net of tax	(100,664)	77,474	-	-
Operating profit before working capital changes	11,205,701	9,717,120	416,646	287,412
Changes in working capital
- (Increase) / decrease in inventories	1,714,611	(7,952,856)	7,646	10,796
- (Increase) / decrease in trade and other receivables	(2,445,916)	(1,793,071)	(429,563)	(266,765)
- (Increase) / decrease in related company receivables	(29,207)	(28,882)	(1,336,260)	(1,305,175)
- Increase / (decrease) in trade and other payables	(2,837,625)	(575,794)	(155,779)	(223,600)
- Increase / (decrease) in related company payables	71,331	(1,659)	72,129	(15,338)
Cash generated from/(used in) operations	7,678,895	(635,142)	(1,425,181)	(1,512,670)
Income taxes paid	(1,959,863)	(476,173)	(135,822)	(33,639)
Surcharge tax paid	-	(1,068,519)	-	-
Interest paid	(2,526,905)	(1,964,598)	(987,392)	(654,306)
Retiring gratuity paid	(43,810)	(37,840)	(27,614)	(13,420)
Net cash generated from/(used in) operating activities	3,148,317	(4,182,272)	(2,576,009)	(2,214,035)
Cash flows from investing activities
Acquisition and construction of property, plant and equipment	(2,201,074)	(4,540,854)	(7,953)	(63,404)
Acquisition and construction of investment property	(1,212,379)	(348,186)	(3,693)	(1,131)
Acquisition of intangible assets	(34,071)	(139,808)	(2,638)	(118,095)
Interest income received	692,014	467,308	699,975	277,508
Dividend received	1,750	1,070	2,192,012	1,466,375
Investment in subsidiaries	-	-	(15,000)	-
Proceeds from disposal of property, plant and equipment	872	6,272	-	5,806
Purchase of biological assets	(38,006)	-	-	-
(Addition) / disposal to other financial assets	(8,637)	892,400	-	-
Net cash generated from/(used in) investing activities	(2,799,531)	(3,661,798)	2,862,703	1,567,059
Cash flows from financing activities
Net proceeds from/(repayment of) short term borrowings	8,342,167	8,998,675	3,580,000	2,740,000
Net proceeds from/(repayment of) long term borrowings	(2,281,451)	(2,044,818)	(975,546)	(975,000)
Lease payments	(2,399,904)	(1,622,932)	(45,347)	(38,393)
Dividend paid	(2,167,657)	(1,274,132)	(2,167,657)	(1,274,132)
Net cash generated from financing activities	1,493,155	4,056,793	391,450	452,475
Increase / (decrease) in cash and cash equivalents	1,841,941	(3,787,277)	678,144	(194,501)
Movement in cash and cash equivalents
At the beginning of the period	2,331,470	1,842,049	(151,781)	(22,160)
Movement during the period	1,841,941	(3,787,277)	678,144	(194,501)
At the end of the period	4,173,411	(1,945,228)	526,363	(216,661)

06

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 30

September 2023

SEGMENT INFORMATION

		Food Retailing	Food and Beverage	Restaurant	Real Estate	Others	Group
				Manufacturing and
				Distribution
	For the quarter ended 30 September	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022
	Revenue	40,821,366	35,526,110	16,438,331	15,381,903	2,773,216	2,177,779	-	-	-	161	60,032,913	53,085,953
	Intra segment revenue	-	-	(649,571)	(297,784)	-	-	-	-	-	-	(649,571)	(297,784)
	Inter segment revenue	(51,880)	(45,708)	(3,751,573)	(3,535,912)	-	-	-	-	-	(161)	(3,803,453)	(3,581,781)
		40,769,486	35,480,402	12,037,187	11,548,207	2,773,216	2,177,779	-	-	-	-	55,579,889	49,206,388
	Segment operating profit	1,427,313	1,762,869	1,738,693	1,403,623	489,228	310,872	(9,392)	(4,850)	108,929	48,217	3,754,771	3,520,731
	Net finance cost	(936,386)	(861,347)	(211,743)	(370,944)	55,437	6,847	(82,375)	1,070	(207,114)	(338,898)	(1,382,181)	(1,563,272)
	Share of equity accounted investees results	-	-	-	-	-	-	-	-	58,386	(54,320)	58,386	(54,320)
	Profit before taxation	490,927	901,522	1,526,950	1,032,679	544,665	317,719	(91,767)	(3,780)	(39,799)	(345,001)	2,430,976	1,903,139
		Food Retailing	Food and Beverage	Restaurant	Real Estate	Others	Group
				Manufacturing and
				Distribution
For the six months ended 30 September	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022	Rs. '000 2023	Rs. '000 2022
Revenue	82,951,232	72,215,599	33,555,306	28,422,328	5,334,661	4,214,687	-	-	8,194	11,308	121,849,393	104,863,922
Intra segment revenue	-	-	(1,235,621)	(421,969)	-	-	-	-	-	-	(1,235,621)	(421,969)
Inter segment revenue	(100,349)	(84,149)	(8,171,872)	(7,165,604)	-	-	-	-	(8,194)	(11,308)	(8,280,415)	(7,261,061)
		82,850,883	72,131,450	24,147,813	20,834,755	5,334,661	4,214,687	-	-	-	-	112,333,357	97,180,892
Segment operating profit	3,117,441	3,306,445	3,433,107	2,541,398	924,935	575,541	(15,123)	(13,166)	206,532	117,131	7,666,892	6,527,349
Net finance cost	(1,828,589)	(1,480,360)	(499,953)	(464,600)	97,623	4,053	(118,084)	1,562	(491,781)	(523,331)	(2,840,784)	(2,462,676)
Share of equity accounted investees results	-	-	-	-	-	-	-	-	100,664	(77,474)	100,664	(77,474)
Profit before taxation	1,288,852	1,826,085	2,933,154	2,076,798	1,022,558	579,594	(133,207)	(11,604)	(184,585)	(483,674)	4,926,772	3,987,199
Reportable Segment Assets *	67,881,497	66,306,651	25,326,202	23,014,372	6,107,793	5,269,953	9,707,963	8,520,672	18,717,455	17,675,034	127,740,910	120,786,682
Reportable Segment Liabilities **	59,390,050	57,449,006	15,648,288	14,682,871	4,909,466	4,283,860	572,102	354,077	15,432,669	13,099,061	95,952,575	89,868,875

• Segment Assets include Investment Property and Right of Use Assets
• Segment Liabilities include Lease Liabilities

07

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 30

September

2023

EXPLANATORY NOTES

1. Basis of preparation

The results for the six months ended 30 September 2023 and the Statement of Financial Position as at 30 September 2023 are provisional and subject to audit.

4. Dividend

The board of directors proposed an interim dividend of Rs. 4.50 per share at the meeting held on 27 October 2023.

The Condensed Interim Financial Statements of the Group and the Company have been prepared in accordance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. These Condensed Interim Financial Statements should be read in conjunction with the annual financial statements for the year ended 31 March 2023.

Freehold Land and Investment Property are respectively shown at the values in existence as at the last date of valuation. Other investments are reflected at values in existence as at the reporting date.

1. Fair value measurement and related fair value disclosures
   The fair values of all the financial assets and financial liabilities recognized during the period were not materially different from the transaction prices at the date of initial recognition. There were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 categories as per the fair value hierarchy, during the period. The fair value changes on financial instruments in Level 3 category was properly recorded in the statement of other comprehensive income.
   Fair valuation has been carried out as at 30 September 2023 for all unquoted equity shares classified as Level 3 within the fair value hierarchy according to fair valuation methodology, Fair value would not significantly vary if one or more inputs were changed.
2. Contingent liabilities
   There have been no significant change in the nature and value of the contingencies and commitments which were disclosed in the annual report for the year ended 31 March 2023.

1. Events after the reporting period
   No events have occurred since the reporting date which would require any adjustment to, or disclosure in, the financial statements.
2. Comparative figures

Where appropriate, the previous year's figures have been reclassified to conform to the current classification. All per share details have been calculated, for all periods, based on the number of shares in issue as at 31 March 2023.

08

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 30

September 2023