Malwatte Valley Plantations : Provisional financial statements for the six month ended 30 June 2022

MALWATTE VALLEY PLANTATIONS PLC
PROVISIONAL FINANCIAL STATEMENTS
FOR THE SIX MONTH ENDED 30TH JUNE 2022
INCOME STATEMENT
		Group				Company		Audited
	03 Months	06 Months	03 Months	06 Months	03 Months		06 Months	03 Months	06 Months	Group	Company
	ended	ended	ended	ended	ended		ended	ended	ended
	30.06.2022	30.06. 2022	30.06.2021	30.06.2021	30.06.2022	30.06.2022	30.06.2021	30.06.2021	31.12.2021	31.12.2021
	(Rs '000)	(Rs '000)	(Rs '000)	(Rs '000)	(Rs '000)		(Rs '000)	(Rs '000)	(Rs '000)	(Rs '000)	(Rs '000)
TURNOVER	2,135,603	3,488,097	1,175,963	2,351,887	2,063,108	3,370,812	1,158,570	2,311,544	4,791,648	4,712,945
COST OF SALES	(1,295,768)	(2,401,328)	(1,023,102)	(2,081,378)	(1,245,028)	(2,320,149)	(1,007,151)	(2,050,507)	(4,308,955)	(4,266,697)
GROSS PROFIT	839,835	1,086,769	152,861	270,509	818,080	1,050,663	151,419	261,037	482,692	446,248
GAIN/(LOSS) ON CHANGE IN FAIR VALUE OF TIMBER STOCK	-	-	-	-	-	-	-	-	94,433	94,433
OTHER INCOME	449,339	531,337	42,564	77,442	449,339	531,337	42,543	77,414	183,025	182,750
						-
SELLING AND DISTRIBUTION	(5,239)	(5,239)	(5,568)	(5,568)	-	-	-	-	(11,930)	-
FINANCE INCOME	8,420	15,105	9,878	18,503	8,420	15,105	9,878	18,503	40,716	40,716
						-
ADMINSTRATIVE EXPENSES	(77,701)	(154,813)	(77,048)	(120,713)	(73,930)	(147,010)	(77,331)	(117,926)	(294,248)	(286,221)
						-
INTEREST PAID TO GOVERNMENT ON FINANCE LEASE	(8,739)	(17,478)	(8,456)	(16,539)	(8,739)	(17,478)	(8,456)	(16,539)	(35,572)	(35,572)
						-
FINANCE COST	(31,695)	(55,593)	(18,037)	(33,449)	(31,615)	(55,341)	(17,793)	(32,956)	(71,821)	(70,972)
PROFIT/(LOSS) BEFORE TAXATION	1,174,220	1,400,088	96,194	190,185	1,161,554	1,377,276	100,260	189,533	387,295	371,382
INCOME TAX EXPENSE	-	-	-	-	-	-	-	-	(88,628)	(88,628)
PROFIT/(LOSS) FOR THE PERIOD	1,174,220	1,400,088	96,194	190,185	1,161,554	1,377,276	100,260	189,533	298,667	282,754
Earnings per share	5.26	6.28	0.43	0.85
Net assets per share	-	21.94	-	16.05
Market value of shares - Voting
Highest price	32.00		12.80	32.00
Lowest price	20.00		10.40	9.10
Last traded price	28.30		12.00	28.00
Market value of shares - Non Voting
Highest price	22.90		9.00	19.90
Lowest price	12.70		7.10	8.60
Last traded price	21.40		7.30	18.20
Markert Capitalization ('000)
Voting	5,739,023		2,433,508	5,678,185
Non Voting	433,364		147,830	368,562
Price Earning Ratio (times)	5		28	33
Float adjusted market Capitalization ('000)
Voting	1,895,025		803,544	1,871,870
Non Voting	433,364		147,830	368,562
Price Earning Ratio (times)	4		17	21
The company complies with of the listing rules 7.13.1(a) - Less than Rs. 2.5Bn float adjusted market capitaliztion
STATEMENT OF CHANGES IN EQUITY
Group
	Stated	Timber	Revaluation	Retained	Total
	Capital	Reserve	reserve	earning	equity
	(Rs '000)	(Rs '000)	(Rs '000)	(Rs '000)	(Rs '000)
Balance as at 31.12.2020	373,000	1,280,117	860,357	876,979	3,390,453
					-
Net Profit / (Loss) for the period	-	-	-	190,184	190,184
Balance as at 30th June 2021	373,000	1,285,570	891,825	1,067,163	3,580,637
Balance as at 31.12.2021	373,000	1,374,651	860,357	886,405	3,494,413
Net Profit / (Loss) for the period				1,400,088	1,400,088
Balance as at 30th June 2022	373,000	1,374,651	860,357	2,286,493	4,894,501
STATEMENT OF CHANGES IN EQUITY
Company
	Stated	Timber	Revaluation	Retained	Total
	Capital	Reserve	reserve	earning	equity
	(Rs '000)	(Rs '000)	(Rs '000)	(Rs '000)	(Rs '000)
Balance as at 31st December 2020	373,000	1,280,117	860,357	906,466	3,419,940
Profit for the Year				189,533	189,533
Balance as at 30th June 2021	373,000	1,280,117	860,357	1,095,999	3,609,473
					-
Balance as at 31.12.2021	373,000	1,374,651	860,357	899,980	3,507,988
Net Profit / (Loss) for the period				1,377,276	1,377,276
Balance as at 30th June 2022	373,000	1,374,651	860,357	2,277,256	4,885,264

PROVISIONAL FINANCIAL STATEMENTS

FOR THE SIX MONTH ENDED 30TH JUNE 2022

STATEMENT OF COMPREHENSIVE INCOME

	Group	Company	Audited	Audited
	Group	Company
	30.06.2022	30.06.2022	31.12.2021	31.12.2021
	(Rs.'000)	(Rs.'000)	(Rs.'000)	(Rs.'000)
Profit for the Year	1,400,088	1,377,276	298,667	282,754
Gain/(Loss) on financial assets at fair value			127	127
Gain/(Loss) on acturial Valuation of Retiring Gratuity			(200,620)	(200,620)
Tax Effect			28,087	28,087
Comprehensive Income For the Peroid	1,400,088	1,377,276	126,261	110,348

MALWATTE VALLEY PLANTATIONS PLC

PROVISIONAL FINANCIAL STATEMENTS

AS AT 30TH JUNE 2022

STATEMENT OF FINANCIAL POSITION

NON CURRENT ASSETS

LEASE HOLD PROPERTY, PLANT & EQUIPMENT

FREEHOLD PROPERTY, PLANT & EQUIPMENT

TIMBER STOCK

BEARER BIOLOGICAL ASSETS

OTHER NON CURRENT FINANCIAL ASSETS

INVESSTMENT IN SUBSIDIARY

GOOD WILL

CURRENT ASSETS

PRODUCE ON BEARER BIOLOGICAL ASSETS

INVENTORIES

WITHHOLDING TAX RECOVERABLE

VAT RECOVERABLE

INCOME TAX REFUND DUE

TRADE AND OTHER RECEIVABLE

ECONOMIC SEVICE CHARGES RECOVERABLE

AMOUNTS DUE FROM RELATED PARTIES

SHORT TERM INVESTMENTS

CASH AND BANK BALANCES

Total Current Assets

TOTAL ASSETS

EQUITY & LIABILITIES

CAPITAL & RESERVES

STATED CAPITAL

TIMBER RESERVE

REVALUATION RESERVE

RETAINED EARNING

TOTAL EQUITY

NON CURRENT LIABILITIES & DEFFERED INCOME

INTEREST BEARING LOANS AND BORROWINGS DEFERRED INCOME

DEFERRED TAX LIABILITY RETIREMENT BENEFIT OBLIGATIONS

LIABILITY TO MAKE LEASE PAYMENTS AFTER ONE YEAR

CURRENT LIABILITEIS

TRADE AND OTHER PAYABLE

INTEREST BEARING LOANS AND BORROWINGS

LIABILITY TO MAKE LEASE PAYMENTS WITHIN ONE YEAR YEAR N B T PAYABLE

DIVIDEND PAYABLE

BANK OVERDRAFT

Total Current Liabilities

Total Liabilities

TOTAL EQUITY AND LIABILITIES

	Group			Company
30.06.2022	30.06.2021	31.12.2021	30.06.2022	30.06.2021	31.12.2021
(Rs.'000)	(Rs.'000)	(Audited)	(Rs.'000)	(Rs.'000)	(Audited)
298,840	304,318	350,191	298,840	304,318	350,191
2,061,865	2,130,250	2,079,517	2,060,764	2,129,195	2,078,521
1,479,464	1,297,107	1,352,044	1,479,464	1,297,107	1,352,045
1,436,485	1,384,930	1,479,464	1,436,485	1,384,930	1,479,464
246	118	246	246	118	246
-	-	-	22,166	22,166	22,166
22,111	22,111	22,166
5,299,011	5,138,834	5,283,628	5,297,965	5,137,834	5,282,633
2,010	3,668	2,010	2,010	3,668	2,010
701,731	561,805	460,620	644,480	541,341	422,386
4,710	4,710	4,710	4,710	4,710	4,710
-	169	-		169
34,573	34,573	34,573	34,573	34,573	34,573
977,730	530,879	672,286	933,308	500,696	653,789
42,048	42,048	42,048	42,048	42,048	42,048
828	828	828	98,568	83,531	62,218
198,997	601,601	413,688	198,997	601,601	413,688
458,844	170,361	179,592	449,882	146,713	175,582
2,421,471	1,950,642	1,810,355	2,408,576	1,959,050	1,811,004
7,720,482	7,089,476	7,093,985	7,706,541	7,096,887	7,093,637
373,000	373,000	373,000	373,000	373,000	373,000
1,374,651	1,280,117	1,374,651	1,374,651	1,280,117	1,374,651
860,357	860,357	860,357	860,357	860,357	860,357
2,286,493	1,067,163	886,405	2,277,256	1,096,000	899,980
4,894,501	3,580,637	3,494,413	4,885,264	3,609,474	3,507,988
63,530	185,030	4,500	63,530	172,530	4,500
129,630	128,233	128,699	129,630	128,233	128,699
368,287	307,746	368,287	368,287	307,746	368,287
1,093,666	849,852	1,071,539	1,093,666	849,852	1,071,539
290,374	302,598	302,746	290,374	302,598	302,746
1,945,488	1,773,459	1,875,771	1,945,488	1,760,959	1,875,771
548,108	657,112	715,606	547,572	656,521	714,183
150,941	594,669	635,053	146,774	586,336	622,553
20,084	27,196	20,084	20,084	27,196	20,084
769	769	769	769	769	769
3,855	2,889	3,962	3,855	2,889	3,962
156,735	452,743	348,327	156,735	452,743	348,327
880,492	1,735,378	1,723,801	875,789	1,726,454	1,709,878
2,825,980	3,508,837	3,599,572	2,821,277	3,487,413	3,585,649
7,720,482	7,089,476	7,093,985	7,706,541	7,096,887	7,093,637

Approved and signed for and on behalf of the Board of Directors of Malwatte Valley Plantations PLC
Lucas Bogtstra	K.G.M. Piyaratne
Managing Director	Director Finance

MALWATTE VALLEY PLANTATIONS PLC

PROVISIONAL FINANCIAL STATEMENTS

FOR THE SIX MONTH ENDED 30TH JUNE 2022

CASH FLOW STATEMENT

				Group					Company
		30.06.2022		30.06.2021		31.12.2021		30.06.2022		30.06.2021	31.12.2021
		(Rs.'000)		(Rs.'000)		(audited)		(Rs.'000)		(Rs.'000)	(audited)
CASH FLOW FROM OPERATING ACTIVITIES
Profit / (Loss) before taxation		1,400,088		190,184		387,295		1,377,275		189,533	371,382
Adjustment for
Depreciation/Amortisation		79,541		67,008		155,149		79,541		67,008	154,975
Provision for Defined Benefit Plan		32,040		33,323		116,374		32,040		33,323	116,374
Interest income		(10,057)		(18,503)		(40,716)		(10,057)		(18,503)	(40,716)
Finance Cost		73,071		49,988		107,393		72,819		49,494	106,544
Profit on disposal of Property,Plant & Equipments		-		(14,843)		(18,132)		-		(14,843)	(18,133)
Write off Opening Balance		-		-		275		-		-	-
Write Back of Long Outstandings		-		-		(247)		-		-	-
Dividend Income		(2)		(2)		(13)		(2)		(2)	(14)
Gain on change in fair value of biological assets		-		-		(94,433)		-		-	(94,433)
Amortization of Grants		-		-		(8,548)		-		-	(8,548)
Provision for Inventories		-		-		656		-		-	656
Profit from Sale of Timebr Trees		-		-		(39,505)		-		-	(39,505)
Operating profit before working capital changes		1,574,681		307,155		565,548		1,551,616		306,010	548,582
(Increase) / Decrease in trade and other receivables		(298,479)		(258,479)		(399,992)		(279,518)		(242,693)	(395,618)
(Increase) / Decrease in inventories	-	248,018	-	87,892		12,636	-	222,093	-	97,370	20,929
(Increase) / Decrease in Related Parties		-		-		-		(36,352)		(9,240)	12,074
Increase / (Decrease) in trade and other payables		(142,496)		(97,293)		(38,182)		(141,609)		(90,993)	(32,901)
Cash generated from operations		885,688		(136,509)		140,010		872,044		(134,286)	153,066
Interest paid		(55,593)		(33,449)		(66,833)		(55,341)		(32,956)	(65,983)
Income taxes paid		-		-		-		-		-	-
Dividends paid		-		-		-		-		-	-
Retiring Gratuity Paid		(47,393)		(37,722)	-	121,263		(47,393)		(37,722)	(121,263)
Net cash from operating activities		782,702		(207,680)		(48,086)		769,310		(204,964)	(34,180)
CASH FLOW FROM INVESTMENT ACTIVITIES
Investment in / disposal of Short - term Investments		214,691		98,667		286,581		214,691		98,667	286,581
Purchase of property, plant and equipment		(10,536)		(10,510)		(43,592)		(10,431)		(10,064)	(43,030)
Field development expenditure		(84,442)		(64,203)		(162,965)		(84,442)		(64,203)	(162,964)
Cash received on harvested timber		-		-		41,062		-		-	41,062
Proceeds from sale of Property Plant & Equipment		-		14,843		18,132		-		14,843	18,132
Grant Received		931		2,727		11,741		931		2,727	11,741
Dividend Income		2		2		13		2		2	13
Interest income		10,057		18,503		40,716		10,057		18,503	40,716
Net cash used in investment activities		130,703		60,029		191,688		130,808		60,475	192,251
CASH FLOW FROM FINANCE ACTIVITIES
Payment of Governemnt Lease Rental		(17,478)		(16,539)		(68,781)		(17,478)		(16,539)	(68,781)
Proceeds from loans		1,095,222		989,945		1,928,747		1,095,222		989,945	1,928,747
Repayments of Loans		(1,520,304)		(757,037)		(1,821,204)		(1,511,971)		(752,869)	(1,808,704)
Net cash used in financing activities		(442,560)		216,369		38,762		(434,227)		220,537	51,262
Net increases / ( Decreases) in cash & cash equivalents		470,845		68,718		182,364		465,891		76,048	209,333
Cash & cash equivalents at beginning of the period - Note - A		(168,736)		(351,099)		(351,099)		(172,744)		(382,076)	(382,076)
Cash & cash equivalents at the end of the period - Note - B		302,109		(282,382)		(168,735)		293,146		(306,028)	(172,745)
NOTE A
Cash& Cash Equivalents at the beginning of the period
Cash & Bank Balances		179,592		139,083		139,093		175,582		108,105	108,105
Bank Overdrafts		(348,327)		(490,182)		(490,182)		(348,327)		(490,182)	(490,182)
		(168,735)		(351,099)		(351,089)		(172,745)		(382,077)	(382,077)
NOTE B
Cash and cash equivalents at the end of the period
Cash & Bank Balances		458,844		170,361		179,591		449,882		146,713	175,582
Bank Overdrafts		(156,735)		(452,743)		(348,327)		(156,735)		(452,743)	(348,327)
		302,109		(282,382)		(168,735)		293,146		(306,028)	(172,745)

MALWATTE VALLEY PLANTATIONS PLC

PROVISIONAL FINANCIAL STATEMENTS

FOR THE SIX MONTH ENDED 30TH JUNE 2022

NOTES TO THE FINANCIAL STATEMENTS

		2022	2021
TURNOVER		Rs.'000	Rs.'000
	TEA	1,945,080	1,322,561
	RUBBER	247,563	184,625
	COCONUT	2,878	1,250
	OTHERS	1,175,291	803,109
		3,370,812	2,311,545
COST OF SALE
	TEA	1,114,303	1,161,885
	RUBBER	156,668	145,971
	COCONUT	1,052	426
	OTHERS	1,048,126	742,225
		2,320,149	2,050,507
	TEA	830,777	160,676
GROSS PROFIT	RUBBER	90,895	38,654
	COCONUT	1,826	824
	OTHERS	127,165	60,884
		1,050,663	261,038

NOTES TO THE FINANCIAL STATEMENTS

1. Stated Capital represents 202,792,332 number of issued & fully paid Ordinary Shares including one Golden Share held by the Treasury which has special rights and 20,250,660 number of Non voting shares.
2. The Company repurchased 21,797,829 voting ordinary shares and 2,749,340 non voting ordinary shares in July 2013 and the Stated Capital remains at Rs.373,000,010/-.
3. The Company subdivided its shares on 4th April 2011 in the proportion of 10 shares for every 01 share held.
4. Accounting policies and methods of computation adopted for the preparation of provisional financial statements are same as those in the previous audited financial statements.
5. The above figures are provisional and subject to audit.
6. No circumstances have arisen since the Balance Sheet date, which would require adjustments

or disclosures in the Financial statements.

1. The Company has been adopting Sri Lanka Accounting Standards (SLRFS/LKAS) with effect from 1st January 2012 .
2. No provision was made for Income Tax liability.
3. The Financial Statements were authorized for issue on 26th July 2022.