Kahawatte Plantations : Interim Financial Statements For The Nine Months ended 30th September 2022

Kahawatte Plantations PLC

Interim Financial Statements

Nine Months ended 30th September 2022

KAHAWATTE PLANTATIONS PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		Quarter Ended		Nine Months Ended
	Unaudited	Unaudited		Unaudited	Unaudited
	30.09.2022	30.09.2021	Change +/(-)	30.09.2022	30.09.2021	Change +/(-)
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Revenue	1,874,555	1,061,328	813,227	4,921,196	3,350,615	1,570,581
Cost of Sales	(1,491,789)	(1,057,809)	(433,980)	(3,984,100)	(3,175,069)	(809,031)
Gross Profit	382,766	3,519	379,247	937,096	175,546	761,550
Other Income	32,714	22,925	9,789	119,877	40,751	79,126
Fair Value Gain on Biological Assets	-	-	-	-	-	-
Administrative Expenses	(38,400)	(33,110)	(5,290)	(114,640)	(85,179)	(29,461)
Management Fee	-	-	-	-	-	-
Profit/(Loss) From Operating Activities	377,080	(6,666)	383,746	942,333	131,118	811,215
Finance Costs	(116,633)	(48,281)	(68,352)	(268,353)	(133,404)	(134,949)
Profit/(Loss) before Taxation	260,447	(54,947)	315,394	673,980	(2,286)	676,266
Income Tax Expense	(1,496)	-	(1,496)	(4,435)	-	(4,435)
Profit/(Loss) for the period	258,951	(54,947)	313,898	669,545	(2,286)	671,831
Other Comprehensive Income
Items that will not be Reclassified to Profit or Loss
Actuarial Gain / (Loss) on retirement Benefit obligation	-	-	-	-	-	-
Deferred tax charge on Retirement Benefit Obligation	-	-	-	-	-	-
Total Comprehensive Income/(expense) for the Period	258,951	(54,947)	313,898	669,545	(2,286)	671,831
Basic Earnings / (Loss) Per Share (Rs.)	2.60	(0.55)	3.2	6.74	(0.02)	6.76

KAHAWATTE PLANTATIONS PLC

STATEMENT OF CHANGES IN EQUITY

	Stated	Revaluation	Accumulated	Total
	Capital	Reserve	Profit/(Loss)
	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 1st January 2021	1,698,952	268,356	(832,547)	1,134,761
Net Loss for the Period	-	-	(2,286)	(2,286)
Other Comprehensive Income/(Expense)
Actuarial Gain on Defined Benefit Obligation, Net of Tax	-	-	-	-
Balance as at 30th September 2021	1,698,952	268,356	(834,833)	1,132,475
Balance as at 1st January 2022	1,698,952	279,277	(832,120)	1,146,109
Net Profit for the Period	-	-	669,545	669,545
Other Comprehensive Income/(Expense)
Actuarial Gain on Defined Benefit Obligation, Net of Tax	-	-	-	-
Balance as at 30th September 2022	1,698,952	279,277	(162,575)	1,815,654

KAHAWATTE PLANTATIONS PLC

STATEMENT OF FINANCIAL POSITION

	Unaudited	Unaudited	Audited
As at	30.09.2022	30.09.2021	31.12.2021
	Rs.'000	Rs.'000	Rs.'000
ASSETS
Non Current Assets
Leasehold Right to Bare Land of JEDB/SLSPC Estates	145,406	147,018	148,501
Immovable Leased Assets of JEDB/SLSPC Estates (Other than Bare Land)	29,166	36,963	36,198
Property, Plant & Equipment	1,038,224	1,010,571	1,011,135
Biological Assets	3,231,291	3,259,463	3,316,880
	4,444,087	4,454,015	4,512,714
Current Assets
Produce on Bearer Biological Assets	8,475	8,376	8,475
Inventories	841,349	446,014	416,319
Trade and Other Receivable	249,421	181,413	113,511
Amount Due from Related Parties	9,072	9,114	4,591
Cash and Bank Balance	48,268	33,035	29,065
	1,156,585	677,952	571,961
TOTAL ASSETS	5,600,672	5,131,967	5,084,675
EQUITY AND LIABILITIES
Capital and Reserves
Stated Capital	1,698,952	1,698,952	1,698,952
Revaluation Reserve	279,277	268,356	279,277
Retained Earnings	(162,575)	(834,833)	(832,120)
Total Equity	1,815,654	1,132,475	1,146,109
Non Current Liabilities
Deferred Income	276,092	279,050	288,448
Deferred Tax Liability	140,795	140,795	140,795
Interest Bearing Loans and Borrowings	422,590	584,190	576,049
Retiring Benefit Obligations	536,189	612,396	518,467
Net Liability to Lessor of JEDB/SLSPC Estates	133,491	129,887	133,491
	1,509,157	1,746,318	1,657,250
Current Liabilities
Interest Bearing Loans and Borrowings	765,194	763,779	765,777
Net Liability to Lessor of JEDB/SLSPC Estates	813	685	813
Trade and Other Payable	699,925	607,219	621,600
Amounts due to Related Parties	31,553	90,945	98,274
Bank Overdraft	778,376	790,546	794,852
	2,275,861	2,253,174	2,281,316
Total Liabilities	3,785,018	3,999,492	3,938,566
Total Equity and Liabilities	5,600,672	5,131,967	5,084,675
Net Assets Per Share (Rs.)	18.26	11.39	11.53

It is certified that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 07 of 2007.

sgd.

Vinesh Athukorala

Chief Financial Officer

Signed on behalf of the Board of Directors of Kahawatte Plantations PLC

sgd.	sgd.
Minette D A Perera	Himendra S Ranaweera
Director	Director
15th November 2022

KAHAWATTE PLANTATIONS PLC

STATEMENT OF CASH FLOWS

For the Period ended	Unaudited	Unaudited	Audited
	30.09.2022	30.09.2021	31.12.2021
	Rs.'000	Rs.'000	Rs.'000
Cash Flow from Operating Activities
Net Profit/(Loss) Before Taxation	673,980	(2,286)	(94,466)
Adjustment For
Depreciation/Amortization	157,962	150,706	220,791
Write-Offs- (Other Receivables/PPE/Immature Plantations)	73,295	-	1,861
ESC Write-offs	-	-	12,955
(Profit)/ Loss from Disposal of Property Plant and Equipment	-	(1,124)	(2,494)
Interest Expenses	268,353	133,404	183,806
Provision for Retirement Benefit Obligations	61,683	46,248	95,799
Fair Value Gain on Biological Assets	-	-	(92,290)
Change in Consumable Biological Assets Due to Harvest	-	-	11,242
Amortization of Grants	(12,373)	(11,325)	(15,763)
Operating Profit/(Loss) before Working Capital Changes	1,222,900	315,623	321,441
(Increase) / Decrease in Inventories	(425,030)	(3,812)	26,320
(Increase) / Decrease in Trade and Other Receivable	(135,911)	(60,667)	(6,421)
(Increase) / Decrease in Amounts Due from Related Companies	(4,481)	(1,504)	3,019
Increase / (Decrease) in Trade and Other Payable	89,170	27,128	33,679
Increase / (Decrease) in Amount Due to Related Companies	2,415	1,513	(14,940)
	749,063	278,281	363,098
Interest Paid	(231,598)	(62,426)	(163,807)
Payment of Retirement Benefit Obligations	(78,539)	(73,558)	(85,642)
Grants Received	17	6,165	20,000
Economic Service Charge Paid	-	-	-
Net Cash (Used In )/ Generated from Operating Activities	438,943	148,462	133,649
Cash Flow from Investing Activities
Investment in Immature Bearer/Consumable Biological Assets	(53,489)	(49,402)	(61,171)
Purchase of Property Plant and Equipment	(68,153)	(124,808)	(155,681)
Proceeds from Disposal of Property Plant and Equipment	-	1,124	2,494
Net Cash Used In Investing Activities	(121,642)	(173,086)	(214,358)
Cash Flow from Financing Activities
Loan Received	81,812	196,846	226,026
Loan Repayments	(346,566)	(137,446)	(114,072)
Lease Rentals Paid to JEDB/SLSPC	(14,931)	(13,873)	(18,618)
Finance Lease Rentals	(1,937)	-	-
Net Cash (Used In)/ Generated from Financing Activities	(281,622)	45,527	93,336
Net Increase / (Decrease) in Cash and Cash Equivalents	35,679	20,903	12,627
Cash and Cash Equivalents at the Beginning of the Year	(765,787)	(778,414)	(778,414)
Cash and Cash Equivalents at the End of the Period	(730,108)	(757,511)	(765,787)

KAHAWATTE PLANTATIONS PLC

SEGMENTAL INFORMATION

( A) Segment Revenue

	Segment		Quarter Ended		Nine Months Ended
	30.09.2022	30.09.2021	Change +/(-)	30.09.2022	30.09.2021	Change +/(-)
		Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
	Tea	1,622,667	823,387	799,280	4,250,084	2,825,963	1,424,121
	Rubber	207,409	200,448	6,961	538,786	435,091	103,695
	Other Crop	44,479	37,493	6,986	132,326	89,561	42,765
		1,874,555	1,061,328	813,227	4,921,196	3,350,615	1,570,581
( B)	Segment Cost of Sale
	Segment		Quarter Ended		Nine Months Ended
	30.09.2022	30.09.2021	Change +/(-)	30.09.2022	30.09.2021	Change +/(-)
		Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
	Tea	(1,299,002)	(888,730)	(410,272)	(3,448,250)	(2,745,265)	(702,985)
	Rubber	(160,979)	(150,265)	(10,714)	(443,948)	(363,106)	(80,842)
	Other Crop	(31,808)	(18,814)	(12,994)	(91,902)	(66,698)	(25,204)
		(1,491,789)	(1,057,809)	(433,980)	(3,984,100)	(3,175,069)	(809,031)
( C)	Segment Results
	Segment		Quarter Ended		Nine Months Ended
	30.09.2022	30.09.2021	Change +/(-)	30.09.2022	30.09.2021	Change +/(-)
		Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
	Tea	323,665	(65,343)	389,008	801,834	80,698	721,136
	Rubber	46,430	50,183	(3,753)	94,838	71,985	22,853
	Other Crop	12,671	18,679	(6,008)	40,424	22,863	17,561
	Gross Profit	382,766	3,519	379,247	937,096	175,546	761,550
	Unallocated
	Other Income	32,714	22,925	9,789	119,877	40,751	79,126
	Fair Value Gain on Biological Assets	-	-	-	-	-	-
	Administrative Expenses	(38,400)	(33,110)	(5,290)	(114,640)	(85,179)	(29,461)
	Management Fee	-	-	-	-	-	-
	Profit/(Loss) From Operating Activities	377,080	(6,666)	383,746	942,333	131,118	811,215
	Finance Costs	(116,633)	(48,281)	(68,352)	(268,353)	(133,404)	(134,949)
	Profit/(Loss) before Taxation	260,447	(54,947)	315,394	673,980	(2,286)	676,266