INDUSTRIAL ASPHALTS (CEYLON) PLC QUARTERLY ACCOUNTS
Q3 - 2022/2023
QUARTERLY ACCOUNTS
INDUSTRIAL ASPHALTS (CEYLON) PLC
QUARTERLY ACCOUNTS
Q3 - 2022/2023
2 IAC - QUARTERLY ACCOUNTS - Q3 - 2022/2023
INDUSTRIAL ASPHALTS (CEYLON) PLC
PERFORMANCE REVIEW FOR THE PERIOD ENDED 31ST DECEMBER 2022
The financial performance for IAC reflects the asset allocation decisions taken during the period, primarily shifting of liquid assets away from fixed income instruments towards listed equities. The rationale behind this is due to the increased risk projected by fixed income securities stemming from the domestic debt restructuring (DDR) process. Given that the country has defaulted all non-rupee denominated debt the risk-free status of the country's treasuries comes into question. Whilst various scenarios could play out, there would be a DDR which would entirely depend on two factors - the policies followed to meet IMF austerity measures this restricts the sovereign's ability to print and settle local debt, and the second being the settlement to be reached with non-rupee denominated private creditors. These international private creditors would have to take a haircut wherein they would be cushioned to some extend if the haircut is equitably shared with local debt holders. The whole process involves matching the debt serviceability of the country to that of the debt outstanding. In the current context, we are of the view that a strong DDR is likely. We have classified all fixed income securities as higher risk in comparison to listed equities and real estate. Currently the high nominal returns offered by fixed income securities is deceptive and only reflect the unquantifiable default risk premium. Once clarity is achieved, market interest rates are expected to significantly come down until the current austerity measures are compromised due to socio-economic pressures in the medium to long term.
The Company is actively perusing the proposed Bitumen Terminal Project in Hambantota. Sri Lankan economy has pivoted away from the high potential post war economy to one of a more basic economy with limited unsophisticated economic sectors driving a much smaller economy. We are of the view that for the public works investments to revert to pre-crisis levels it would take around 2-4 years. Currently we are working with Hambantota International Port and our JV partner to rollout the investment to meet this time- line. As the economy pivots away from high post potential post-war economy, the structure of the economy would favor larger economic players - the giants of the economy - IAC would be looking to strategically align with one of the emerging large well diversified financially stronger group of companies.
IAC continues to explore opportunities in real estate and potential acquisitions which are more suitable to the new economic realities.
3 IAC - QUARTERLY ACCOUNTS - Q3 - 2022/2023
INDUSTRIAL ASPHALTS (CEYLON) PLC
STATEMENT OF COMPREHENSIVE INCOME
For the nine months ended | For the quarter ended | ||||||||
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 | ||||||
(unaudited) | (unaudited) Change % | (unaudited) | (unaudited) Change % | ||||||
Notes | Rs'000 | Rs'000 | Rs'000 | Rs'000 | |||||
Continuing Operations | |||||||||
Revenue | 4 | 42,551 | 31,912 | 33% | 14,781 | 11,138 | 33% | ||
Other Operating Income | - | - | - | - | - | - | |||
Administrative Expenses | (18,921) | (12,763) | -48% | (7,872) | (6,033) | -30% | |||
Unrealized Gain/ (Loss) on Financial Asset at FVTPL | (37,099) | - | -100% | (31,620) | - | -100% | |||
Gain/ (Loss) on Revaluation of Investment Property | 64,895 | - | 100% | - | - | - | |||
Profit/ (Loss) from Operating Activities | 51,426 | 19,149 | 169% | (24,711) | 5,105 | -584% | |||
Net Finance Income/ (Charges) | (1,789) | (43) | -4058% | (1,170) | (14) | -8217% | |||
Profit/ (Loss) before Tax from Continuing | 49,637 | 19,106 | 160% | (25,881) | 5,090 | -608% | |||
Operations | |||||||||
Tax (Expense)/ Reversal | (1,886) | (1,285) | -47% | (368) | (545) | 32% | |||
Profit/ (Loss) for the period from Continuing | 47,752 | 17,821 | 168% | (26,249) | 4,545 | -677% | |||
Operations | |||||||||
Discontinued Operations | |||||||||
Profit/ (Loss) from Discontinued Operations | 11.1 | - | (6,402) | 100% | - | - | - | ||
Gain on Disposal of Paints & Coatings Division | 11.2 | - | 359 | -100% | - | - | - | ||
Profit/ (Loss) for the period | 47,752 | 11,778 | 305% | (26,249) | 4,545 | -677% | |||
Other Comprehensive Income/ (Expenses) for | |||||||||
the period | |||||||||
Other Comprehensive Income for the period | |||||||||
(net of tax) | - | - | - | - | - | - | |||
Total Comprehensive Income/ (Expenses) for the | 47,752 | 11,778 | 305% | (26,249) | 4,545 | -677% | |||
period net of tax | |||||||||
Profit/ (Loss) attributable to: | |||||||||
Equity Holders of the Company | 47,752 | 11,778 | 305% | (26,249) | 4,545 | -677% | |||
Earnings per share (Rs.): | |||||||||
Diluted and Basic Earnings/ (Loss) per Ordinary | |||||||||
Share | 0.013 | 0.003 | (0.007) | 0.001 | |||||
Figures in brackets indicate deductions.
The above figures are provisional and subject to audit.
4 IAC - QUARTERLY ACCOUNTS - Q3 - 2022/2023
INDUSTRIAL ASPHALTS (CEYLON) PLC
STATEMENT OF FINANCIAL POSITION
31.12.22 | 31.03.22 | |||
As at | Notes | (unaudited) | (audited) | Change % |
Rs'000 | Rs'000 | |||
ASSETS | ||||
Property, Plant and Equipment | 13,450 | 13,721 | -2% | |
Other Fixed Assets | 5 | 8,442 | 11,534 | -27% |
Investment Property | 1,113,656 | 1,048,761 | 6% | |
Non-current Assets | 1,135,548 | 1,074,016 | 6% | |
Receivables and Prepayments | 6 | 3,863 | 1,367 | 183% |
Other Financial Assets | 52,571 | 168,697 | -69% | |
Financial Assets at FVTPL | 154,051 | - | 100% | |
Income Tax Overpaid | 820 | 820 | 0% | |
Cash & Cash Equivalents | 278 | 301 | -8% | |
Current Assets | 211,583 | 171,185 | 24% | |
TOTAL ASSETS | 1,347,131 | 1,245,201 | 8% | |
EQUITY & LIABILITIES | ||||
Capital & Reserves | ||||
Stated Capital | 156,642 | 156,642 | 0% | |
General Reserve | 15,141 | 15,141 | 0% | |
Retained Earnings | 1,093,996 | 1,046,244 | 5% | |
Total Equity | 1,265,779 | 1,218,028 | 4% | |
Liabilities | ||||
Deferred Tax Liability | (9,800) | (10,915) | -10% | |
Retirement Benefit Obligation | 428 | 203 | -111% | |
Non-current Liabilities | (9,372) | (10,712) | -13% | |
Other Payables | 841 | 505 | -67% | |
Payable on Equity Investments | 40,778 | - | -100% | |
Rent Deposit Received | 35,400 | 35,400 | 0% | |
Income Tax Payable | 771 | - | -100% | |
Unclaimed Dividends | 1,685 | 1,685 | 0% | |
Bank Overdraft | 11,249 | 295 | -3710% | |
Current Liabilities | 90,723 | 37,885 | -139% | |
Total Liabilities | 81,351 | 27,173 | -199% | |
TOTAL EQUITY & LIABILITIES | 1,347,131 | 1,245,201 | 8% | |
Net Assets Value per Ordinary Share (Rs.) | 0.34 | 0.32 |
The Statement of Financial Position as at 31st December 2022 and related Statements of Comprehensive Income, Changes in Equity and Cash Flow for the period ended 31st December 2022 are drawn up from the unaudited Financial Statements of the Company, and they provide the information required by the Colombo Stock Exchange.
The Board of Directors is responsible for the preparation and presentation of these Financial Statements. The Financial Controller certifies that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 7 of 2007.
-
Fernando
Financial Controller
Approved and signed for and on behalf of the Board of Directors
Director | Director |
27th January 2023
Colombo
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Industrial Asphalts (Ceylon) plc published this content on 27 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2023 09:45:01 UTC.
