Diesel & Motor Engineering : Interim Financial Statements - For the 3 months period ended 30th June 2022

DIESEL & MOTOR ENGINEERING PLC

INTERIM FINANCIAL STATEMENTS - FOR THE 3 MONTHS PERIOD ENDED 30TH JUNE 2022

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Group		Company			Group				Company
	Audited		Audited		Unaudited	Unaudited				Unaudited		Unaudited
	Year ended		Year ended		3 months to	3 months to		Variance	3 months to		3 months to		Variance
31-03-2022	31-03-2022		30-06-2022	30-06-2021	%		30-06-2022	30-06-2021	%
	Rs.'000		Rs.'000		Rs.'000	Rs.'000				Rs.'000		Rs.'000
37,507,480	30,086,993	Revenue	7,601,209	7,692,741	(1)		5,996,059	6,344,250	(5)
(27,643,775)	(21,741,818)	Cost of sales	(4,191,250)	(5,978,967)	(30)		(3,032,095)	(4,927,408)	(38)
9,863,705	8,345,175	Gross profit	3,409,959	1,713,774	99		2,963,964	1,416,842	109
220,499	506,333	Other operating income	61,159	90,070	(32)		124,954	140,503	(11)
(497,640)	(518,780)	Selling and distribution expenses	(68,726)	(105,537)	(35)		(79,591)	(86,549)	(8)
(117,195)	(40,370)	Impairment reversal/(loss) on trade receivables	24,682	(50,837)	(149)		(39,183)	(39,432)	(1)
	(6,055,956)		(5,289,252)	Administrative expenses	(1,799,696)	(1,350,835)	33		(1,480,070)	(1,136,359)	30
3,413,413	3,003,106	Operating profit	1,627,378	296,635	449		1,490,074	295,005	405
56,313	27,565	Finance income	25,640	4,563	462		61,251	2,955	1,973
	(2,320,011)		(2,303,824)	Finance costs	(1,498,450)	(151,054)	892		(1,528,375)		(125,233)	1,120
(2,263,698)	(2,276,259)	Net finance costs	(1,472,810)	(146,491)	905		(1,467,124)	(122,278)	1,100
				Share of results of equity-accounted investees,
	15,630		15,630	net of tax	2,698	916	195		2,698		916	195
1,165,345	742,477	Profit before tax	157,266	151,060	4		25,648	173,643	(85)
	(310,975)		(159,500)	Income tax expense	(24,366)	(20,110)	21		(5,535)		(31,902)	(83)
854,370	582,977	Profit for the period	132,900	130,950	1		20,113	141,741	(86)
				Other comprehensive income
				Items that will not be reclassified to profit
				or loss in subsequent periods
				Remeasurement loss on defined benefit
(15,399)	(14,723)	obligation	-	-	-		-	-	-
3,696	3,534	Deferred tax reversal on actuarial loss	-	-	-		-	-	-
				Net change in fair value of equity investments at
	2,224		1,415	FVOCI	(2,336)	301	(876)		(1,937)		292	(763)
(9,479)	(9,774)		(2,336)	301				(1,937)	292
				Items that are or may be reclassified to
				profit or loss in subsequent periods
				Foreign currency translation differences of
	62,471		48,941	foreign operations	73,002	(12,553)	682		36,054		(4,437)	913
62,471	48,941		73,002	(12,553)				36,054	(4,437)
				Total other comprehensive income for the
	52,992		39,167	period, net of tax	70,666	(12,252)	677		34,117		(4,145)	923
907,362	622,144	Total comprehensive income for the	203,566	118,698	71		54,230	137,596	(61)
period
				Profit attributable to:
702,119	582,977	Equity holders of the parent	98,921	99,397				20,113	141,741
	152,251		-	Non-controlling interest	33,979	31,553				-		-
854,370	582,977		132,900	130,950				20,113	141,741
				Total comprehensive income attributable
				to:
753,108	622,144	Equity holders of the parent	170,086	88,665				54,230	137,596
	154,254		-	Non-controlling interest	33,480	30,033				-		-
	907,362		622,144		203,566	118,698				54,230		137,596
76.06	63.15	Basic and diluted earnings per share (Rs.)	10.72	10.77				2.18		15.35
				Figures in brackets indicate deductions

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 3 months period ended 30th June 2022

Page 1 of 9

STATEMENT OF FINANCIAL POSITION

Group				Company			Group			Company
Audited				Audited			Unaudited			Unaudited	Unaudited		Unaudited
as at				as at			as at			as at	as at		as at
31-03-2022	31-03-2022			30-06-2022			30-06-2021		30-06-2022	30-06-2021
Rs.'000				Rs.'000			Rs.'000			Rs.'000	Rs.'000		Rs.'000
						ASSETS
14,071,712	13,648,665		Property, plant and equipment	14,235,054			13,785,500		13,660,403	13,383,750
624,385	548,254		Right-of-use assets	608,200			451,539		537,574	382,795
316,123	194,726		Intangible assets and goodwill	583,274			142,355		214,224	18,807
-	728,278		Investments in subsidiaries	-			-		1,392,222	532,808
45,430	45,430		Investments in equity accounted investees	51,592			2,786		51,592	2,786
7,829	6,952		Equity securities	5,493			5,906		5,015	5,829
164,436			-		Deferred tax assets	190,437			136,602		-		-
15,229,915				15,172,305		Total non-current assets	15,674,050			14,524,688		15,861,030		14,326,775
9,799,949	7,529,200		Inventories	11,598,142			8,918,177		9,111,114	7,226,234
9,299,796	6,944,985		Trade and other receivables	8,666,149			9,443,888		5,855,598	7,526,853
2,032,933	1,149,175		Other current assets	2,570,460			2,194,492		1,344,205	1,491,228
83,377	-		Current tax asset	83,740			94,231		-	-
40,923	1,070,985		Amounts due from related parties	57,698			18,840		1,500,833	87,282
3,818,097			2,337,628		Cash and cash equivalents	2,534,378			1,623,587		1,548,800		1,184,208
25,075,075			19,031,973		Total current assets	25,510,567			22,293,215		19,360,550		17,515,805
40,304,990	34,204,278		TOTAL ASSETS	41,184,617			36,817,903		35,221,580	31,842,580
						EQUITY AND LIABILITIES
						EQUITY
620,578	620,578		Stated capital	620,578			620,578		620,578	620,578
6,202,697	6,149,097		Other components of equity	6,273,862			6,129,273		6,183,214	6,094,596
8,237,608			6,912,926		Revenue reserves	8,221,135			7,769,841		6,817,645		6,482,879
15,060,883	13,682,601		Equity attributable to equity holders of the parent	15,115,575			14,519,692		13,621,437	13,198,053
405,604			-		Non-controlling interests	450,928			449,303		-		-
15,466,487			13,682,601		Total equity	15,566,503			14,968,995		13,621,437		13,198,053
1,164,133	1,164,133		Long-term borrowings	1,052,250			984,080		1,052,250	984,080
574,443	505,849		Lease liabilities	516,159			375,999		451,947	309,268
864,286	781,892		Employee benefits	902,125			798,355		807,931	712,410
1,417,856	1,417,856		Deferred tax liabilities	1,181,551			1,888,691		1,181,550	1,888,691
361,524			22,663		Contract liabilities	408,899			263,522		19,486		56,717
4,382,242			3,892,393		Total non-current liabilities	4,060,984			4,310,647		3,513,164		3,951,166
7,793,051	7,292,195		Trade and other payables	7,898,371			5,318,112		7,154,484	4,726,240
3,045,424	2,179,222		Other current liabilities	3,081,665			2,420,861		2,235,230	1,703,077
564,441	559,541		Long term-borrowings	597,696			403,802		597,696	383,123
105,140	78,039		Lease liabilities	159,465			135,575		134,694	98,484
1,221,572	365,358		Contract liabilities	1,165,337			1,105,172		320,853	416,323
-	-		Government grant	-			531,064		-	531,064
503,666	441,451		Current tax liability	676,193			94,101		585,741	69,713
7,222,967	5,712,212		Short-term borrowings	7,978,403			7,529,574		6,533,745	6,657,485
-			1,266		Amounts due to related parties	-			-		524,536		107,852
20,456,261			16,629,284		Total current liabilities	21,557,130			17,538,261		18,086,979		14,693,361
24,838,503			20,521,677		Total liabilities	25,618,114			21,848,908		21,600,143		18,644,527
40,304,990			34,204,278		TOTAL EQUITY AND LIABILITIES	41,184,617			36,817,903		35,221,580		31,842,580

It is certified that the Financial Statements have been prepared in accordance with the requirements of the Companies Act No.7 of 2007.

(Sgd.) M.H.B.U.S.B. Mahagedara

General Manager - Finance

The Board of Directors is responsible for these Financial Statements.

Signed for and on behalf of the Board.

(Sgd.) A.R.Pandithage	(Sgd.) B.C.S.A.P.Gooneratne
Chairman/Managing Director	Director/Chief Financial Officer
15th August 2022

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 3 months period ended 30th June 2022

Page 2 of 9

Group

For the three months ended 30th June

As at 01st April 2021

Total comprehensive income

Profit for the period

Other comprehensive income/(loss), net of tax

Dividends to equity holders -2019/20 Final dividend Reserve capitalisation

As at 30th June 2021

As at 01st April 2022

Total comprehensive income

Profit for the period

Other comprehensive income/(loss), net of tax

Acquisition of subsidiary with non-controlling interests Dividends to equity owners

-2021/22 Final dividend

As at 30th June 2022

Company

For the three months ended 30th June

As at 01st April 2021

Total comprehensive income Profit for the period

Other comprehensive income/(loss), net of tax

Dividends to equity owners -2019/20 Final dividend Reserve capitalisation

As at 30th June 2021

As at 01st April 2022

Total comprehensive income

Profit for the period

Other comprehensive income/(loss), net of tax

Dividends to equity owners -2021/22 Final dividend

As at 30th June 2022

Figures in brackets indicate deductions.

Statement of Changes in Equity

		Other Components of Equity		Revenue Reserves	Non-
				Foreign				Controlling
				Currency				Interests
	Stated	Revaluation	Fair value	Translation		General	Retained
	Capital	Reserve	Reserve	Reserve		Reserve	Earnings		Total
	Rs.'000	Rs.'000	Rs.'000	Rs.'000		Rs.'000	Rs.'000	Rs.'000	Rs.'000
	425,297	6,112,161	4,147	23,697	5,392,290	2,584,390	419,270	14,961,252
	-	-	-	-	-	99,397	31,553	130,950
	-	-	301	(11,033)	-	-	(1,520)	(12,252)
	-	-	301	(11,033)	-	99,397	30,033	118,698
	-	-	-	-	-	(110,955)	-	(110,955)
	195,281	-	-	-	-	(195,281)	-	-
	195,281	-	-	-	-	(306,236)	-	(110,955)
	620,578	6,112,161	4,448	12,664	5,392,290	2,377,551	449,303	14,968,995
	620,578	6,112,161	6,371	84,165	5,392,290	2,845,318	405,604	15,466,487
	-	-	-	-	-	98,921	33,979	132,900
	-	-	(2,336)	73,501	-	-	(499)	70,666
	-	-	(2,336)	73,501	-	98,921	33,480	203,566
	-	-	-	-	-	-	11,844	11,844
	-	-	-	-	-	(115,394)	-	(115,394)
	-	-	-	-	-	(115,394)	11,844	(103,550)
	620,578	6,112,161	4,035	157,666	5,392,290	2,828,845	450,928	15,566,503
		Other Components of Equity		Revenue Reserves
				Foreign
				Currency
	Stated	Revaluation	Fair Value	Translation		General	Retained
	Capital	Reserve	Reserve	Reserve		Reserve	Earnings	Total
	Rs.'000	Rs.'000	Rs.'000	Rs.'000		Rs.'000	Rs.'000	Rs.'000
	425,297	6,090,133	4,087	4,521	4,929,464	1,717,910	13,171,412
	-	-	-	-	-	141,741	141,741
	-	-	292	(4,437)	-	-	(4,145)
	-	-	292	(4,437)	-	141,741	137,596
	-	-	-	-	-	(110,955)	(110,955)
	195,281	-	-	-	-	(195,281)	-
	195,281	-	-	-	-	(306,236)	(110,955)
	620,578	6,090,133	4,379	84	4,929,464	1,553,415	13,198,053
	620,578	6,090,133	5,502	53,462	4,929,464	1,983,462	13,682,601
	-	-	-	-	-	20,113	20,113
	-	-	(1,937)	36,054	-	-	34,117
	-	-	(1,937)	36,054	-	20,113	54,230
	-	-	-	-	-	(115,394)	(115,394)
	-	-	-	-	-	(115,394)	(115,394)
	620,578	6,090,133	3,565	89,516	4,929,464	1,888,181	13,621,437

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 3 months period ended 30th June 2022

Page 3 of 9

Statement of Cash Flows

Group CompanyGroupCompany

Audited		Audited			Unaudited		Unaudited		Unaudited		Unaudited
Year Ended		Year Ended
31-03-2022		31-03-2022 For the Period Ended 30th June	2022	2021		2022	2021
Rs.'000		Rs.'000		Rs.'000		Rs.'000	Rs.'000		Rs.'000
				Cash Flows from Operating Activities
1,165,345	742,477		Profit before taxation	157,266	151,060		25,648		173,643
				Adjustments for;
383,785	325,957		Depreciation on property, plant and equipment	101,714	102,766		83,800	79,859
11,615	8,309		Amortisation of intangible assets	2,926	2,772		2,067	1,955
100,751	78,948		Depreciation and derecognition of right-of-use assets	36,639	26,459		31,134	21,118
68,030	68,030		Unrealised (gain)/loss on foreign exchange	(24,300)	-		48,679	-
-	96,649		Impairment of investments in subsidiaries	-	-		-	-
(21,092)	(22,093)		Gains on sale of property, plant and equipment	-	19		-	19
115,358	115,358		Derecognition of capital work-in-progress	-	45		-	-
850,492	652,993		Interest expenses	435,663	128,666		368,250	98,920
(56,313)	(27,565)		Interest income	(25,640)	(4,563)		(61,251)	(2,955)
(235)	(235)		Dividend income	(320)	(235)		(320)	(235)
(15,630)	(15,630)		Share of results of equity-accounted investees, net of tax	(2,698)	(916)		(2,698)	(916)
117,195	40,370		(Reversal of)/provision for impairment of trade receivables	(24,682)	50,837		39,183	39,432
97,915	112,091		Provision for slow moving inventories	106,173	38,063		104,959	20,108
125,721		110,050		Provision for employee benefits obligation excluding actuarial gain	41,057		37,524		33,943		32,917
2,942,937	2,285,709			803,798	532,497		673,394	463,865
				Changes in working capital
(3,699,046)	(3,254,795)		Increase in inventories	(1,895,364)	(2,757,422)		(1,686,873)	(2,859,846)
(835,439)	(714,172)		Decrease/(increase) in trade and other receivables	748,661	(1,251,687)		1,050,204	(1,422,058)
(408,975)	(32,775)		Increase in other current assets	(537,527)	(433,022)		(195,030)	(248,266)
(22,281)	(1,043,714)		Increase in amounts due from related parties	(16,775)	(198)		(376,040)	(60,011)
2,661,826	2,967,798		Increase/(decrease) in trade and other payables	96,831	301,823		(137,711)	516,779
502,136	446,349		Increase/(decrease) in other current liabilities	3,513	(115,407)		23,280	(22,776)
(546,521)	(546,521)		Decrease in deferred income	-	(15,457)		-	(15,457)
399,886	(120,468)		(Decrease)/increase in contract liabilities	(8,860)	185,484		(47,682)	(35,449)
-		(42,130)		Increase/(decrease) in amounts due to related parties	-		-		7,686		64,456
994,523		(54,719) Cash (used in)/from operating activities	(805,723)	(3,553,389)		(688,772)	(3,618,763)
(842,042)	(644,543)		Interest paid	(397,947)	(129,304)		(314,950)	(99,558)
(74,842)	(58,720)		Employee benefits paid	(9,652)	(37,177)		(7,904)	(36,346)
(417,628)		(269,912)		Income tax paid	(114,145)		(56,539)		(97,550)		(46,751)
(339,989)		(1,027,894) Net cash used in operating activities	(1,327,467)	(3,776,409)		(1,109,176)	(3,801,418)
				Cash Flows from Investing Activities
43,523	43,406		Net proceeds from sale of property, plant and equipment	-	17,586		-	17,586
235	235		Dividends received	320	235		320	235
48,555	27,565		Interest received	20,815	4,563		7,443	2,955
(192,850)	-		Investment in deposits	-	-		-	-
(202,184)	(202,184)		Investment in subsidiary	-	-		(213,864)	-
-	-		Acquisition of subsidiary, net of cash acquired	(371,109)	-		(450,080)	-
(753,695)	(676,491)		Acquisition and construction of property, plant and equipment and	(117,405)	(51,320)		(95,538)	(46,805)
				capital work-in-progress
(180,630)		(180,449)		Acquisition of intangible assets and capital work-in-progress	(21,565)		-		(21,565)		-
(1,237,046)		(987,918) Net cash used in investing activities	(488,944)	(28,936)		(773,284)	(26,029)
				Cash Flows from Financing Activities
652,130	652,130		Proceeds from long-term borrowings	-	-		-	-
-	-		Short-term borrowings from related parties	-	-		500,000	-
(481,796)	(460,678)		Repayment of long-term borrowings	(132,296)	(100,259)		(127,396)	(94,920)
4,154,507	3,502,787		Net movement of short-term borrowings	797,229	4,575,184		756,350	4,447,971
(99,999)	(58,956)		Repayment of lease liabilities	(24,743)	(22,344)		(18,033)	(13,277)
(110,955)		(110,955)		Dividends paid	(115,394)		(110,955)		(115,394)		(110,955)
4,113,887		3,524,328 Net cash from financing activities	524,796	4,341,626		995,527	4,228,819
2,536,852		1,508,516 Net (decrease)/increase in cash and cash equivalents	(1,291,615)	536,281		(886,933)	401,372
1,040,328	745,684		Cash and cash equivalents as at 01st April	3,653,478	1,040,328		2,299,207	745,684
76,298		45,007		Effect of exchange rate changes on cash and cash equivalents	49,689		(3,571)		32,922		(1,358)
3,653,478		2,299,207 Cash and cash equivalents at the end of the period (Note-A)	2,411,552	1,573,038		1,445,196	1,145,698
				Note - A
				Analysis of Cash and Cash Equivalents at the end of the period
3,818,097	2,337,628		Cash and bank balances	2,534,378	1,623,587		1,548,800	1,184,208
(164,619)		(38,421)		Bank overdrafts	(122,826)		(50,549)		(103,604)		(38,510)
3,653,478		2,299,207 Cash and cash equivalents	2,411,552	1,573,038		1,445,196	1,145,698

Figures in brackets indicate deductions.

Diesel & Motor Engineering PLC

Interim Financial Statements - For the 3 months period ended 30th June 2022

Page 4 of 9