Ceylon Guardian Investment Trust : Financial statements as at 30th June 2022

Ceylon Guardian

Investment Trust PLC

A Carson Cumberbatch Company

Interim report for the three months ended 30th June 2022

CEYLON GUARDIAN INVESTMENT TRUST PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - GROUP (All figures are in Sri Lankan Rupees thousands)

	Three months ended
	30th June
	2022	2021	Change %
Continuing operations
Revenue	31,772	169,675	(81)
Net change in fair value through profit or loss financial assets	(1,011,385)	247,136	(509)
Profit/(loss) on investment activities	(979,613)	416,811	(335)
Administrative and other operating expenses	(61,888)	(50,763)	22
Profit/(loss) from operations	(1,041,501)	366,048	(385)
Net finance expense	(8,736)	(2,679)	226
Profit/(loss) from operations after net finance expense	(1,050,237)	363,369	(389)
Share of profit/(loss) of equity accounted investee, net of tax	(1,416)	(95)	1,391
Profit/(loss) before taxation	(1,051,653)	363,274	(389)
Income tax expense	(33,088)	(26,923)	23
Profit/(loss) for the period from continuing operations	(1,084,741)	336,351	(423)
Discontinued operations
Profit after tax for the period from discontinued operations	-	4,534	(100)
Profit/(loss) for the period	(1,084,741)	340,885	(418)
Other comprehensive income	(1,084,741)
Items that will never be reclassified to profit or loss
Net change in fair value through other comprehensive income financial assets	(1,308,048)	(822,640)	59
Items that are or maybe reclassified to profit or loss
Net exchange difference on translation of foreign operations	296,342	1,269	23,252
Other comprehensive income / (expense) for the period	(1,011,706)	(821,371)	23
Total comprehensive income / (expense) for the period	(2,096,447)	(480,486)	336
Profit/(Loss) attributable to:
Equity holders of the parent	(904,215)	275,419	(428)
Non controlling interest	(180,526)	65,466	(376)
	(1,084,741)	340,885	(418)
Total comprehensive income /(expense) attributable to:	-	-
Equity holders of the parent	(1,743,700)	(406,117)	329
Non controlling interest	(352,747)	(74,369)	374
	(2,096,447)	(480,486)	336
	-	-
Earnings per share (Rs.)	(10.24)	3.12
Dividend per share (Rs.)*	-	-

Change % represents the percentage change in current period's results compared to the comparative period of previous year.

• Dividend per share is based on the proposed/ interim dividends. Figures in brackets indicate deductions.

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CEYLON GUARDIAN INVESTMENT TRUST PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY (All figures are in Sri Lankan Rupees thousands)

	Three months ended
		30th June
	2022	2021	Change %
Revenue	101,981			54
66,352
Net change in fair value through profit or loss financial assets	(327,830)	59,793	(648)
Profit/(loss) on investment activities	(225,849)	126,145	(279)
Administrative and other operating expenses	(21,442)	(18,473)	16
Profit/(loss) from operations	(247,291)	107,672	(330)
Net finance expense	(4,956)	(2,384)	108
Profit/(loss) before taxation	(252,247)	105,288	(340)
Income tax expense	(15,275)	(3,476)	339
Profit/(loss) for the period	(267,522)	101,812	(363)
Other comprehensive income	-
Other comprehensive income for the period	-	-	-
Total comprehensive income / (expense) for the period	(267,522)	101,812	(363)
Earnings per share (Rs.)	(3.03)	1.15
Dividend per share (Rs.)*	-	-

Change % represents the percentage change in current period's results compared to the comparative period of previous year.

• Dividends per share is based on the proposed/ interim dividends. Figures in brackets indicate deductions.

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CEYLON GUARDIAN INVESTMENT TRUST PLC

STATEMENT OF FINANCIAL POSITION

(All figures are in Sri Lankan Rupees thousands)

	Group		Company
	30.06.2022	31.03.2022		30.06.2022		31.03.2022
As at	(Unaudited)	(Adjusted)		(Unaudited)		(Adjusted)
ASSETS
Non-current assets		2,747	-	-
Property, plant and equipment	2,398
Intangible assets	1,483	2,594	-	-
Right of use assets	5,778	7,703	-	-
Investment in subsidiaries	-	-	1,785,546	1,785,546
Investment in equity accounted investee	48,617	50,034	35,000	35,000
Investment in fair value through other comprehensive income	6,085,490	7,393,538	-	-
Deferred tax asset	1,360	1,360	-	-
Investments in fixed deposits	515,564	-	237,365	-
Total non-current assets	6,660,690	7,457,976	2,057,911	1,820,546
Current assets		174,034	101,947	102,841
Trade and other receivables	246,632
Investments in equity and debt securities	7,021,281	8,194,740	2,219,087	2,812,613
Investments in unit trusts	223,682	363,961	79,236	162,908
Investments in fixed deposits	1,057,912	982,954	375,441	360,028
Cash and cash equivalents	2,794,255	2,771,255	1,117,168	1,006,130
Total current assets	11,343,762	12,486,944	3,892,879	4,444,520
Total assets	18,004,452	19,944,920	5,950,790	6,265,066
EQUITY AND LIABILITIES	-		-
Equity		1,128,726	1,128,726	1,128,726
Stated capital	1,128,726
Capital reserves	324,836	324,836	208,660	208,660
Revenue reserves	13,054,300	14,974,574	4,287,666	4,731,762
Total equity attributable to equity holders of the parent	14,507,862	16,428,136	5,625,052	6,069,148
Non controlling interest	2,753,817	3,132,203	-	-
Total equity	17,261,679	19,560,339	5,625,052	6,069,148
Non-current liabilities		8,382	-	-
Employee benefits	8,773
Total non-current liabilities	8,773	8,382	-	-
Current liabilities		187,739	35,988	98,896
Trade and other payables	87,184
Lease liabilities	6,055	7,998	-	-
Current tax liabilities	76,391	121,933	28,614	38,493
Short term borrowings	564,370	58,529	261,136	58,529
Total current liabilities	734,000	376,199	325,738	195,918
Total liabilities	742,773	384,581	325,738	195,918
Total equity and liabilities	18,004,452	19,944,920	5,950,790	6,265,066
	-	-	-	-
Net assets per ordinary/deferred share (Rs.)	164.33	185.04	63.71	68.36

The Statement of Financial Position as at 30th June 2022 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the period then ended as disclosed in pages 1 to 5 have been drawn up from unaudited accounts.

I certify that these financial statements comply with the requirements of the Companies Act No. 07 of 2007.

(Sgd).

V.R. Wijesinghe

Director - Finance

Carsons Management Services (Private) Limited

The board of directors is responsible for the preparation and presentation of these financial statements.

Approved & Signed on behalf of the Investment Managers,	Approved & signed on behalf of the Board,
(Sgd).	(Sgd).	(Sgd).
K. Selvanathan	M.A.R.C. Cooray (Mrs)	D.C.R. Gunawardena
Director	Chairperson	Director
Guardian Fund Management Limited

Colombo

10th August 2022

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CEYLON GUARDIAN INVESTMENT TRUST PLC

STATEMENT OF CHANGES IN EQUITY

(All figures are in Sri Lankan Rupees thousands)

						Attributable
						to equity	Non
			Stated	Capital	Revenue	holders of	controlling	Total
	Group	capital	reserves	reserves	the parent	interest	equity
	Balance as at 1st April 2022
	(Adjusted)	1,128,726	324,836	14,974,574	16,428,136	3,132,203	19,560,339
	Profit/(loss) for the period	-	-	(904,215)	(904,215)	(180,526)	(1,084,741)
	Other comprehensive income /
	(expense) for the period	-	-	(839,485)	(839,485)	(172,221)	(1,011,706)
	Total comprehensive income /
	(expense) for the period	-	-	(1,743,700)	(1,743,700)	(352,747)	(2,096,447)
	Cash dividend	-	-	(176,574)	(176,574)	(25,639)	(202,213)
	Balance as at 30th June 2022
	(Unaudited)	1,128,726	324,836	13,054,300	14,507,862	2,753,817	17,261,679
							-
	Balance as at 1st April 2021	1,128,726	324,709	15,288,695	16,742,130	3,319,563	20,061,693
	Surcharge tax for the year of
	assessment 2020/21*	-	-	(73,194)	(73,194)	(16,534)	(89,728)
	Balance as at 1st April
	2021(Adjusted)	1,128,726	324,709	15,215,501	16,668,936	3,303,029	19,971,965
	Profit for the year	-	-	275,419	275,419	65,466	340,885
	Other comprehensive income
	/(expense) for the period	-	-	(681,536)	(681,536)	(139,835)	(821,371)
	Total comprehensive income/
	(expense) for the period	-	-	(406,117)	(406,117)	(74,369)	(480,486)
	Balance as at 30th June 2021
	(Adjusted)	1,128,726	324,709	14,809,384	16,262,819	3,228,660	19,491,479
					Stated	Capital	Revenue	Total
	Company			capital	reserves	reserves	equity
	Balance as at 1st April 2022 (Adjusted)			1,128,726	208,660	4,731,762	6,069,148
	Profit/(loss) for the period			-	-	(267,522)	(267,522)
	Other comprehensive income / (expense) for the period		-	-	-	-
	Total comprehensive income / (expense) for the period		-	-	(267,522)	(267,522)
	Cash dividend			-	-	(176,574)	(176,574)
	Balance as at 30th June 2022 (Unaudited)			1,128,726	208,660	4,287,666	5,625,052
	Balance as at 1st April 2021				1,128,726	208,660	5,059,992	6,397,378
	Surcharge tax for the year of assessment 2020/21*		-	-	(25,609)	(25,609)
	Balance as at 1st April 2021(adjusted)			1,128,726	208,660	5,034,383	6,371,769
	Profit for the year			-	-	101,812	101,812
	Other comprehensive income /(expense) for the period		-	-	-	-
	Total comprehensive income/ (expense) for the period		-	-	101,812	101,812
	Balance as at 30th June 2021 (Adjusted)			1,128,726	208,660	5,136,195	6,473,581

Figures in brackets indicate deductions.

• As per the provisions of Surcharge Tax Act No. 14 of 2022, although the Group / Company did not become liable to pay surcharge tax as a stand-alone entity, the Company and the Group are liable for surcharge tax on the basis that the Company and the Group are part of the Carson Cumberbatch PLC Group, of which the aggregate taxable income exceeded the threshold as stipulated in the aforesaid Act. Accordingly, the Company was liable for a surcharge tax of Rs. 25,608,612/- out of the taxable income of Rs. 102,434,449/- pertaining to the year of assessment 2020/21 and the Group was liable for a surcharge tax of Rs. 89,727,650/- out of the taxable income of Rs. 358,910,600/-.The Company/ Group paid the surcharge tax liability in two equal installments on 18th April 2022 and 10th July 2022.

According to the Act, the surcharge tax shall be deemed to be an expenditure in the financial statements relating to the year of assessment which commenced on 1st April 2020. The expense of surcharge tax is accounted in accordance with 'Statement of Alternative Treatment on Accounting for Surcharge Tax levied under the Surcharge Tax Act No. 14 of 2022' issued by the Institute of Chartered Accountants of Sri Lanka on 22nd April 2022.

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