Malwatte Valley Plantations : Provisional financial statements for the year ended 31 December 2021

MALWATTE VALLEY PLANTATIONS PLC

PROVISIONAL FINANCIAL STATEMENTS

FOR THE 12 MONTH ENDED 31ST DECEMBER 2021

INCOME STATEMENT

		Group		Company			AUDITED
		3 Months	12months ended	3 months	12 months		03 months	Group	Company
		Ended			ended	ended		ended
		31.12.2021		31.12.2021	31.12.2021	31.12.2021		31.12.2020	31.12.2020	31.12.2020
		(Rs.'000)		(Rs.'000)	(Rs.'000)	(Rs.'000)		(Rs.'000)	(Rs.'000)	(Rs.'000)
TURNOVER		1,047,559		4,783,989	1,031,491	4,705,289		1,135,276	5,106,439	5,068,575
COST OF SALES	-	998,317	-	4,234,644	(982,181)	(4,172,055)		(1,186,094)	(4,778,848)	(4,725,610)
GROSS PROFIT		49,243		549,345	49,310	533,234	-	50,818	327,591	342,965
GAIN/(LOSS) ON CHANGE IN FAIR VALUE OF TIMBER STOCK		96,096		96,096	96,096	96,096		98,541	98,541	98,541
				-
OTHER INCOME		29,893		169,700	29,921	169,700		51,955	157,572	157,561
				-				-
FINANCE INCOME		37,723		66,829	37,723	66,829		17,699	70,774	70,774
				-				-
ADMINSTRATIVE EXPENSES	-	89,936	-	297,488	(83,534)	(279,304)		(126,916)	(294,992)	(281,095)
				-				-
INTEREST PAID TO GOVERNMENT ON FINANCE LEASE	-	8,772	-	34,083	(8,772)	(34,083)		(10,329)	(35,020)	(35,020)
				-				-
FINANCE COST	-	18,265	-	71,628	(18,104)	(70,779)		(18,810)	(91,429)	(91,201)
PROFIT/(LOSS) BEFORE TAXATION		95,982		478,771	102,641	481,694	-	38,679	233,037	262,525
INCOME TAX EXPENSE									(35,085)	(35,085)
PROFIT/(LOSS) FOR THE PERIOD		95,982		478,771	102,641	481,694	-	38,679	197,953	227,440
Earnings per share		0.43		2.15	0.46	2.16	-	0.17	0.89	1.02
Net assets per share						17.39			15.20	15.33
Market value of shares - Voting
Highest price						32				13.1
Lowest price						9.1				8.7
Last traded price						28				11.9
Market value of shares - Non Voting
Highest price						19.9				10.7
Lowest price						8.6				6.2
Last traded price						18.2				9.2
Markert Capitalization ('000)
Voting						5,678,185				2,413,229
Non Voting						368,562				186,306
Price Earning Ratio (times)						13				12
Float adjusted market Capitalization ('000)
Voting						1,871,871				796,848
Non Voting						368,562				186,306
Price Earning Ratio (times)						8				9
The company complies with of the listing rules 7.13.1(a) - Less than Rs. 2.5Bn float adjusted market capitaliztion
MALWATTE VALLEY PLANTATIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
Group
		Stated		Timber	Revaluation	Retained		Total
		Capital		Reserve	reserve	earning		equity
								-
Balance as at 31.12.2020		373,000		1,280,117	860,357	876,979		3,390,453
Net Profit / (Loss) for the period		-		-	-	478,771		478,771
Dividend		-		-	-	(22,300)		(22,300)
Balance as at 31st December 2021		373,000		1,280,117	860,357	1,333,449		3,846,924
MALWATTE VALLEY PLANTATIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
Company
		Stated		Timber	Revaluation	Retained		Total
		Capital		Reserve	reserve	earning		equity
		Rs.		Rs.	Rs.	Rs.		Rs.
Balance as at 31st December 2019		373,000		1,196,359	661,326	722,844		2,953,529
Profit for the Year						227,440		227,440
Total Other Comprehensive Income for the Year					199,031	39,940		238,971
Transferred to timber Reserve				96,802		(96,802)
Net Profit / (Loss) for the period		-		-	-
Realisgain on Harvesteded timber trees				(13,044)		13,043
Balance as at 31st Dec 2020		373,000		1,280,117	860,357	906,466		3,419,940
								-
Balance as at 31.12.2020		373,000		1,280,117	860,357	906,466		3,419,941
Net Profit / (Loss) for the period		-		-	-	481,694		481,694
Transferred to timber Reserve				96,096		(96,096)
Dividend		-		-	-	(22,300)		(22,300)
Balance as at 31st December 2021		373,000		1,376,213	860,357	1,269,764		3,879,334

MALWATTE VALLEY PLANTATIONS PLC

PROVISIONAL FINANCIAL STATEMENTS

FOR THE 12 MONTH ENDED 31ST DECEMBER 2021

STATEMENT OF COMPREHENSIVE INCOME

	Group	Company	Audited Group	Audited Company
	31.12.2021	31.12.2021	31.12.2020	31.12.2020
	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Profit for the Year	478,771	481,694	197,953	227,440
Gain/(Loss) on financial assets at fair value	-	-	48	48
Gain/(Loss) on acturial Valuation of Retiring Gratuity	-	-	46,386	46,386
Tax Effect			(6,494)	(6,494)
Revaluation of Land & Buildings	-	-	230,499	230,499
Tax Effect			(31,468)	(31,468)
Comprehensive Income For the Peroid	478,771	481,694	436,924	466,412

MALWATTE VALLEY PLANTATIONS PLC

PROVISIONAL FINANCIAL STATEMENTS

AS AT 31ST DECEMBER 2021

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

ECONOMIC SEVICE CHARGES RECOVERABLE

INCOME TAX REFUND DUE

TRADE AND OTHER RECEIVABLE

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 DIVIDEND PAYABLE

LIABILITY TO MAKE LEASE PAYMENTS WITHIN ONE YEAR YEAR BANK OVERDRAFT

Total current Liabilities

Total Liabilities

TOTAL EQUITY AND LIABILITIES

Unaudited	Audited
Group	Company	Group	Company
31/12/2021	31/12/2021	31/12/2020	31/12/2020
(Rs.'000)	(Rs.'000)	(Rs.'000)	(Rs.'000)
300,491	300,491	379,679	379,679
2,131,860	2,129,874	2,096,176	2,095,567
1,481,026	1,481,026	1,384,930	1,384,930
1,352,044	1,352,044	1,248,115	1,248,115
118	118	118	118
-	22,166	-	22,166
22,111	-	22,111	-
5,287,650	5,285,719	5,131,129	5,130,576
3,668	3,668	3,668	3,668
454,162	429,095	473,912	443,971
4,710	4,710	4,710	4,710
42,048	42,048	42,048	42,048
34,573	34,573	34,573	34,573
696,620	676,633	272,570	258,172
828	70,082	828	74,290
413,688	413,688	700,269	700,269
178,551	175,582	139,083	108,105
1,828,849	1,850,080	1,671,660	1,669,806
7,116,499	7,135,799	6,802,790	6,800,382
373,000	373,000	373,000	373,000
1,376,213	1,376,213	1,280,117	1,280,117
860,357	860,357	860,357	860,357
1,236,744	1,269,154	876,978.63	906,466.37
3,846,314	3,878,724	3,390,453	3,419,941
52,530	52,530	69,190	56,690
137,247	137,247	125,506	125,506
307,746	307,746	307,746	307,746
840,363	840,363	854,251	854,251
287,000	287,000	316,337	316,337
1,624,887	1,624,887	1,673,030	1,660,530
677,942	677,333	755,178	748,283
586,830	574,330	462,820	450,320
3,962	3,962	2,889	2,889
28,238	28,238	28,238	28,238
348,327	348,327	490,182	490,182
1,645,299	1,632,189	1,739,306	1,719,911
3,270,185	3,257,075	3,412,336	3,380,441
7,116,499	7,135,799	6,802,790	6,800,382

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 12 MONTH ENDED 31ST DECEMBER 2021

CASH FLOW STATEMENT

		Unaudited	Audited
		Group		Company	Group	Company
		31.12.2021		31.12.2021	31.12.2020	31.12.2020
CASH FLOW FROM OPERATING ACTIVITIES		(Rs.'000)		(Rs.'000)	(Rs.'000)	(Rs.'000)
		478,771		481,693	233,037	262,525
		-		-
Adjustment for		-		-	-	-
Dividend Income		(13)		(13)	(6)	(6)
Interest Income		(66,829)		(66,829)	(70,774)	(70,774)
Depreciation/Amortisation		144,889		144,889	149,351	149,315
Provision for overgrown oil palm nursaries		-		-	-	-
Provision for Defined Benefit Plan		46,372		46,372	136,049	136,049
Amortisation of Grants		-		-	(8,349)	(8,350)
Finance Cost		105,711		104,861	126,449	126,221
Profit on disposal of Property,Plant & Equipments	-	16,379		(16,379)	(1,183)	(1,183)
Change in fair value of Timber Stock	-	96,096	-	96,096	(98,541)	(98,541)
Provision for related parties		-		-	9,076	9,076
Written off of amount due from related party		-		-	(22,166)	(22,166)
Provision for Inventories		-		-	34,678	34,678
Profit from sale of timber trees		-		-	(17,268)	(17,268)
Written off of Bearer Biological Assets (Immature/Mature)		-		-	5,397	5,397
Unclaimable ESC Write -off		-		-	3,666	3,666
Operating profit before working capital changes		596,425		598,498	479,416	508,639
(Increase) / Decrease in Trade & other receivables		(413,553)		(418,427)	131,587	161,528
(Increase) / Decrease in Inventories		9,288		14,877	(73,165)	(59,040)
Increse / (Decrease) in trade & other payables		(76,163)		(69,878)	35,274	28,624
(Increse) / Decrease in amounts due from related parties		-		4,208	2,340	(71,122)
Cash generated from operations		115,997		129,278	575,451	568,629
Finance cost paid		(71,628)		(70,779)	(84,354)	(84,126)
Tax Paid		-		-	(1,227)	(1,227)
Defined Benefit Plan cost paid		(60,259)		(60,259)	(115,544)	(115,544)
Net cash from operating activities		(15,890)		(1,759)	374,326	367,731
CASH FLOW FROM INVESTMENT ACTIVITIES
Investment in / disposal of Short - term Investments		286,581		286,581	(49,016)	(49,016)
Dividend Income received		13		13	6	6
Grant Received		11,741		11,741	2,062	2,062
Proceeds from sale of Property, Plant & Equipments		16,379		16,379	1,800	1,800
Field development expenditure		(162,964)	-	162,964	(143,011)	(143,011)
Cash received on harvested timber		-		-	30,311	30,311
Purchase of Property, Plant & Equipments		(42,995)	-	41,618	(174,877)	(174,250)
Interest Income		66,829		66,829	70,774	70,774
Net cash used in investment activities		175,584		176,961	(261,952)	(261,325)
CASH FLOW FROM FINANCE ACTIVITIES				-	-	-
Dividends paid		(22,300)		(22,300)	-	-
Payment of Governemnt Lease Rental		(34,083)		(34,083)	(71,892)	(71,892)
Proceeds from loans		1,928,747		1,928,747	2,504,934	2,479,934
Repayment of Loans		(1,825,734)		(1,838,234)	(2,394,246)	(2,394,246)
Net cash used in financing activities		46,630		34,130	38,795	13,795
Net increases / ( Decreases) in cash & cash equivalents		181,324		209,332	151,169	120,202
Cash & cash equivalents at beginning of the period - Note - A		(351,102)		(382,076)	(502,268)	(502,279)
Cash & cash equivalents at the end of the period - Note - B		(169,778)		(172,745)	(351,099)	(382,076)
NOTE A
Cash& Cash Equivalents at the beginning of the period
Cash & Bank Balances		139,093		108,105	71,156	71,146
Bank Overdrafts		(490,182)		(490,182)	(573,424)	(573,424)
		(351,089)		(382,076)	(502,268)	(502,279)
NOTE B
Cash and cash equivalents at the end of the period
Cash & Bank Balances		178,549		175,582	139,083	108,105
Bank Overdrafts		(348,327)		(348,327)	(490,182)	(490,182)
		(169,778)		(172,745)	(351,099)	(382,076)

MALWATTE VALLEY PLANTATIONS PLC

PROVISIONAL FINANCIAL STATEMENTS

FOR THE 12 MONTH ENDED 31ST DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

		2021	2020
TURNOVER		Rs.'000	Rs.'000
	TEA	2,640,155	2,521,536
	RUBBER	389,814	352,287
	COCONUT	4,859	3,222
	OTHERS	1,670,461	2,191,530
		4,705,289	5,068,575
COST OF SALE
	TEA	2,297,999	2,275,576
	RUBBER	306,465	345,186
	COCONUT	1,951	2,566
	OTHERS	1,565,641	2,102,282
		4,172,056	4,725,610
GROSS PROFIT	TEA	342,156	245,960
	RUBBER	83,349	7,101
	COCONUT	2,908	656
	OTHERS	104,820	89,248
		533,233	342,965

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.
7. The Company has been adopting Sri Lanka Accounting Standards (SLRFS/LKAS) with effect from 1st January 2012 .
8. No provision was made for Income Tax liability.
9. The Financial Statements were authorized for issue on 02nd March 2022.