Equity Two : ETWO- Interim Financials 31 March 2022

Equity Two PLC

A Carson Cumberbatch Company

Interim report for the year ended 31st March 2022

EQUITY TWO PLC

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

	Three months ended	Year ended
	31st March		31st March
	2022	2021	Change %	2022	2021	Change %
Revenue	33,730	32,904	3	133,566	125,255	7
Direct cost	(10,973)	(8,830)	24	(41,122)	(33,880)	21
	22,757	24,074	(5)	92,444	91,375	1
Other income	535	783	(32)	963	1,121	(14)
Net gain arising from changes in fair value of
investment properties	46,878	1,590	2,848	46,878	1,590	2,848
	70,170	26,447	165	140,285	94,086	49
Administrative and other operating expenses	(1,971)	(2,267)	(13)	(7,864)	(7,951)	(1)
Results from operating activities	68,199	24,180	182	132,421	86,135	54
Finance income	3,501	2,108	66	9,632	11,216	(14)
Finance costs	(970)	(1,220)	(20)	(3,996)	(6,051)	(34)
Net finance income	2,531	888	185	5,636	5,165	9
Profit before taxation	70,730	25,068	182	138,057	91,300	51
Deferred taxation	(12,110)	44,845	(127)	(14,666)	41,899	(135)
Profit for the period / year	53,736	65,673	(18)	104,389	116,099	(10)
Other comprehensive income / (expense)
Items that will never be reclassified into profit and
loss
Actuarial gain / (loss) from valuation of employee
benefits	956	(278)	(444)	956	(278)	(444)
Related tax	(230)	67	(443)	(230)	67	(443)
the period / year	726	(211)	(444)	726	(211)	(444)
Total comprehensive income for the period / year	54,462	65,462	(17)	105,115	115,888	(9)
Earnings per share (Rs.)	1.73	2.12		3.37	3.75
Dividend per share (Rs.)	-	-		0.65	0.65

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

Figures in brackets indicate deductions.

Page 1

EQUITY TWO PLC

STATEMENT OF FINANCIAL POSITION

(All figures are in Sri Lankan Rupees Thousands)

		31.03.2021
As at	31.03.2022	(Audited)
Non-current assets
Investment properties	1,570,418	1,520,255
Current assets
Trade and other receivables	28,333	29,375
Cash and cash equivalents	76,612	6,739
Total assets	1,793,763	1,715,847
EQUITY AND LIABILITIES
Equity
Stated capital	444,092	444,092
Revenue reserves	998,516	913,522
Non-current liabilities
Refundable rental deposits	46,183	42,013
Employee benefits	1,285	2,099
Current liabilities
Trade and other payables	4,148	22,296
Current tax liabilities	1,787	5,091
Total equity and liabilities	1,793,763	1,715,847
	-	-
Net assets per share (Rs.)	46.56	43.82

The Statement of Financial Position as at 31st March 2022 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the year then ended as disclosed in pages 1 to 4 have been drawn up from unaudited financial statements.

I certify that these financial statements are in compliance with the requirements of Companies Act, No. 7 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 and signed on behalf of the managers,	Approved and signed on behalf of the board,
(Sgd).	(Sgd).	(Sgd).
A.P. Weeratunge	D.C.R. Gunawardena	K.C.N. Fernando
Director	Chairman	Director
Carsons Management Services (Private) Limited

Colombo

27th May 2022

Page 2

EQUITY TWO PLC

STATEMENT OF CHANGES IN EQUITY

(All figures are in Sri Lankan Rupees Thousands)

	Stated	Capital	Revenue
	capital	reserves	reserves	Total equity
Balance as at 01st April 2021	444,092	750	913,522	1,358,364
Profit for the year	-	-	104,389	104,389
Other comprehensive income for the year	-	-	726	726
Total comprehensive income for the year	-	-	105,115	105,115
First interim dividend 2021/22	-	-	(20,150)	(20,150)
Balance as at 31st March 2022 (Unaudited)	444,092	750	998,516	1,443,358
Balance as at 01st April 2020	444,092	750	844,134	1,288,976
Profit for the year	-	-	116,099	116,099
Other comprehensive expense for the year	-	-	(211)	(211)
Total comprehensive income for the year	-	-	115,888	115,888
First interim dividend 2020/21	-	-	(20,150)	(20,150)
Balance as at 31st March 2021 (Audited)	444,092	750	913,522	1,358,364

Figures in brackets indicate deductions.

Page 3

EQUITY TWO PLC STATEMENT OF CASH FLOWS

(All figures are in Sri Lankan Rupees Thousands)

Year ended 31st March	2022	2021
Cash flows from operating activities
Profit before taxation	138,057	91,300
Adjustments for:
Finance costs	3,996	6,051
Finance income	(8,485)	(10,685)
Net change in fair value through profit or loss financial assets	(1,147)	(531)
Net gain arising from changes in fair value of investment properties	(46,878)	(1,590)
Provision for employee benefits	142	348
Amortization of deferred revenue	(3,888)	(3,888)
Operating profit before working capital changes	81,797	81,005
(Increase) / decrease in trade and other receivables	1,042	(4,927)
Increase / (decrease) in trade and other payables	(18,264)	(38,677)
Operating profit after working capital changes	64,575	37,401
Rental deposits received	184	6,739
Income tax paid	(22,306)	(10,746)
Net cash generated from / (used in) operating activities	42,453	33,394
Cash flows from investing activities
Additions to investment properties	(3,285)	(323)
Disposal of / (investment in) fair value through profit or loss financial assets	(38,103)	23,251
Withdrawal of / (investment in) fixed deposits	79,939	(63,900)
Interest received	8,874	10,685
Net cash generated from / (used in) investing activities	47,425	(30,287)
Cash flows from financing activities
Dividend paid	(20,005)	(45,963)
Loans obtained/ (settled)	-	(50,000)
Interest paid	-	(2,453)
Net cash generated from / (used in) financing activities	(20,005)	(98,416)
Net increase / (decrease) in cash and cash equivalents	69,873	(95,309)
Cash and cash equivalents at the beginning of the year	6,739	102,048
Cash and cash equivalents at the end of the year	76,612	6,739
Statement of cash and cash equivalents
Investment in fixed deposits	61,513	-
Cash at bank and in hand	15,099	6,739
Cash and cash equivalents for the cash flow statement purposes	76,612	6,739

Figures in brackets indicate deductions.

Page 4