Union Chemicals Lanka : Interim Financial Statement for the period ended 25 Sep 2024

Interim Financial Statements for the Period - Ended

25th September 2024

UNION CHEMICALS LANKA PLC.

Converting Science to Technology

Reg.No: PQ 140

5th Floor, 50, Tickell Road, Colombo 02

Telephone: [phone],

Fax: [phone]

E-Mail:[e-mail]

STATEMENT OF COMPREHENSIVE INCOME
	Th		Quarter	Quarter	Nine		Nine	Year
For The Period Ended 25	Sept.,	Ended	Ended	Months		Months	Ended
					Ended		Ended
			2024	2023	2024		2023	25-12-23
								Audited
Continuing Operations			Rs.'000	Rs.'000	Rs.'000		Rs.'000	Rs.'000
Revenue			358,173	414,402	1,242,639		1,217,347	1,612,878
Cost of Sales			(264,444)	(318,763)	(923,622)		(891,751)	(1,183,430)
Gross profit/(loss)			93,729	95,639	319,017		325,596	429,448
Income from Investment in properties	2,552	1,227	5,884		3,576	4,956
Other operating income		1,466	1,746	3,587		2,967	8,070
Selling expenses			(2,604)	(6,806)	(15,324)		(15,603)	(15,189)
Administrative expenses		(25,427)	(25,811)	(81,136)		(73,253)	(103,773)
Results from Operating Activities	69,716	65,995	232,028		243,283	323,512
Financing income			7,186	7,993	24,366		18,052	26,410
Exchange gain /(loss)			830	(1,601)	6,177	#	12,606	13,398
Financing cost			(87)	(203)	(264)		(5,923)	(6,382)
Net financing (income)/cost	7,929	6,189	30,279		24,735	33,426
Profit before tax			77,645	72,184	262,307		268,018	356,938
Income tax expense			(25,826)	(25,131)	(88,319)		(91,387)	(110,054)
Profit for the period			51,819	47,053	173,988		176,631	246,884
Actuarial gain/(loss) employee benefits	-	-	-		-	1,374
Total comprehensive income for the period	51,819	47,053	173,988		176,631	248,258
Earnings per Share (Rs.)			34.55	31.37	115.99		117.75	164.59

The above figures are provisional and unaudited unless stated otherwise.

Figures in brackets indicate deductions.

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STATEMENT OF FINANCIAL POSITION

	As at	As at	As at
As at 25th Sept.,	2024	2023	25-12-23
			Audited
	Rs.'000	Rs.'000	Rs.'000
Assets
Property, plant & equipment	268,217	236,447	270,652
Investment in properties	69,438	72,715	71,896
Intangible assets	-	-	-
Retirement benefit assets	6,259	6,734	6,231
Financial assets	40,000	45,000	45,000
Other financial assets	383	442	250
Total non-current assets	384,297	361,338	394,029
Current assets
Inventories	513,604	517,193	505,793
Trade and other receivables	238,867	209,527	201,995
Financial assets	251,434	141,417	125,139
Cash and cash equivalents	37,364	26,368	87,535
Total current assets	1,041,269	894,505	920,462
Total assets	1,425,566	1,255,843	1,314,491
Equity & liabilities
Equity
Stated capital (1,500,000 ordinary shares)	15,000	15,000	15,000
Retained earnings	1,229,054	1,044,739	1,095,566
Equity attributable to owners of the Company	1,244,054	1,059,739	1,110,566
Non-current liabilities
Retirement benefit obligations	22,773	22,678	20,059
Deferred tax liability	17,499	11,575	17,499
Total non-current liabilities	40,272	34,253	37,558
Current liabilities
Bank overdrafts	-	53	4,415
Loans and borrowings	-	-	-
Trade & other payables	71,072	88,379	106,298
Income tax payable	60,122	60,891	48,073
Dividend payable	10,046	12,528	7,581
Total current liabilities	141,240	161,851	166,367
Total equity & liabilities	1,425,566	1,255,843	1,314,491
	Rs.	Rs.	Rs.
Net Assets per Share	829.37	706.49	740.38

The above figures are provisional and unaudited unless stated otherwise.

I certify that these financial statements comply with the requirement of Companies Act No 07 of 2007. (Sgd).

UL Pushpakumara
Finance Manager	(Sgd).	((	(Sgd).
28th Oct. 2024	K. M Dissanayaka		H.A.D.U G Gunasekera
	Director		Managing Director

The above figures are provisional and unaudited unless stated otherwise.

Figures in brackets indicate deductions.

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STATEMENT OF CHANGES IN EQUITY
As at 25	th	Sept.,	Stated	Retained	Total
			Capital	Earnings
			Rs.'000	Rs.'000	Rs.'000
Balance as at 26th December, 2022	15,000	893,608	908,608
Profit for the period ended 25th December , 2023		246,884	246,884
Other comprehensive income		1,374	1,374
Unclaimed dividend forfeited		6,200	6,200
Final dividend - 2022 (Rs. 17.00)		(25,500)	(25,500)
Interim dividend - 2023 (Rs. 18.00)		(27,000)	(27,000)
Balance as at 25th December 2023	15,000	1,095,566	1,110,566
Balance as at 26th December, 2022	15,000	893,608	908,608
Profit for the quarter ended 25th Sept. , 2023	-	176,631	176,631
Final dividend - 2022 (Rs. 17.00)		(25,500)	(25,500)
Balance as at 25th Sept., 2023	15,000	1,044,739	1,059,738
Balance as at 26th December, 2023	15,000	1,095,566	1,095,566
Profit for the quarter ended 25th Sept. , 2024	-	173,988	173,988
Final dividend - 2023 (Rs. 27.00)		(40,500)	(40,500)
Balance as at 25th Sept., 2024	15,000	1,229,054	1,229,054

The above figures are provisional and unaudited unless stated otherwise.

Figures in brackets indicate deductions.

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STATEMENT OF CASH FLOW
For The Period Ended 25Th Sept.,	2024	2023
	RS.'000	RS.'000
Cash flows from operating activities
Profit before Tax	262,306	268,018
Adjustment for:
Depreciation on property, plant and equipment	11,901	12,322
Depreciation on investment in properties	2,457	-
Provision (reversal) for retirement gratuity	3,463	2,784
Impairment loss/(reversal) of trade receivasbles	357	(2,690)
(Gain)/Loss on disposal of property, plant and equipment	-	(20)
Interest income	(24,366)	(18,052)
Interest expense	264	5,923
Operating profit before working capital changes	256,382	271,229
(Increase)/Decrease in inventories	(7,812)	171,489
(Increase)/Decrease in trade and other receivables	(38,994)	8,727
Increase/(Decrease) in trade and other payables	(34,956)	(137,860)
Cash flows from operating activities	174,620	313,585
Retiring gratuity paid	(749)	679
Contribution paid to the plan assets	(28)	-
Income tax paid	(76,269)	(57,126)
Interest paid	(534)	(7,883)
Net cash flows from operating activities	97,040	249,255
Cash flows from investing activities
Purchase & construction of property, plant and equipment	(9,463)	(5,025)
Purchase of intangibale asset		-
Proceeds from disposal of property, plant and equipment	-	-
Investing in financial assets	(121,295)	(146,417)
Interest income received	26,137	16,127
Net cash flows from investing activities	(104,621)	(135,315)
Cash flows from financing activities
loans obtained during the year	470,261	394,130
Repayment of loans	(470,268)	(448,812)
Staff loans (granted)/recovered	(133)	(49)
Dividend paid	(38,035)	(25,247)
Net cash inflows from financing activities	(38,175)	(79,978)
Net increase/(decrease) in-cash & cash equivalents	(45,756)	33,962
Cash & cash equivalents at the beginning of the year	83,120	(7,647)
Cash & cash equivalents at the end of the period	37,364	26,315
Analysis of cash and cash equivalents
Cash in hand and at bank	37,364	26,368
Bank overdrafts	-	(53)
	37,364	26,315

The above figures are provisional and unaudited unless stated otherwise.

Figures in brackets indicate deductions.

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Notes to the Financial Statements

1. Accounting Policies and Methods
   The Interim Financial Statements of the Company have been prepared on the basis of the same accounting policies and methods applied for the period ended 25th December 2023 and are in compliance with Sri Lanka Accounting Standards 34- Interim Financial Reporting.
2. Application of Sri Lanka Accounting Standards (SLFRS/LKRS)

The Financial Statements for the period ended 25th December 2012 were the first Financial Statements prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS/LKRS) effective from 1st January 2012.

1.3 Segmental Information

For The Period Ended 25Th Sept.,			2024					2023
		Chemical			Latex		Total		Chemical			Latex		Total
		s and					s and
		plastics							plastics
		Rs.'000			Rs.'000		Rs.'000		Rs.'000			Rs.'000		Rs.'000
Reportable segmental analysis
Segment revenue	229,006		1,013,633		1,242,639		232,271		985,076		1,217,347
Income from I.P	561	5,323	5,884	344	3,232	3,576
Other operating income	342	3,245	3,587	285	2,682	2,967
Depreciation - P&P	(566)	(5,366)	(5,932)	(627)	(5,895)	(6,522)
Depreciation and maint. costof I.P	(362)	(3,436)	(3,798)	(365)	(3,433)	(3,798)
Segment operating activities	22,137	209,891	232,028	23,399	219,884	243,283
Net finance cost	2,889	27,390	30,279	2,379	22,356	24,735
Segment profit before tax	25,026			237,282		262,307		25,777		242,242		268,018
As at 25th Sept.,						-						-
Property, plant and equipment	25,590	242,627	268,217	22,742	213,705	236,447
Investment in properties	6,625	62,813	69,438	6,994	65,721	72,715
Inventories	49,001	464,603	513,604	49,746	467,447	517,193
Trade and other receivables	44,021	194,846	238,867	39,978	169,549	209,527
Segment assets
	125,237	964,889	1,090,126	119,460	916,422	1,035,882
Loans and borrowings	-	-	-	-	-	-
Trade and other payables	6,781	64,291	71,072	8,500	79,879	88,379
Segment liabilities		6,782			64,291		71,072		8,499		79,879		88,379

The above figures are provisional and unaudited unless stated otherwise.

Figures in brackets indicate deductions.

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1. Related Party Transactions
   There have not been any significant changes in the nature of the related party transactions which were disclosed in the Annual Report as at 25th December 2023.
2. Events Occurring after the Balance Sheet Date
   Subsequent to the date of the balance sheet, no events have arisen which require adjustment and/or disclose in the Financial Statements.
3. Contingencies
   There were no changes in the nature of contingent liabilities, which were disclosed in the Annual Report for the year ended 25th December, 2023 other than mentioned below.
4. Market Value per Share during the quarter

				2024	2023
				Rs.		Rs.
	- Highest Price			688.00	767.50
	- Lowest Price			570.00	650.00
	- Last Traded ( Closing) Price as at 25	th	Sept.	624.50	667.25
1.8	Directors Shareholding
				25th Sept.		25th Sept.
				2024		2023
	Dr. A M Mubarak			-	-
	H.A.D.U.G. Gunasekara (Managing Director)	638,622	638,622
	Peoples' Leasing and Finance PLC/ Mr. H A D U G Gunasekera	155,195	155,195
	Seylan Bank PLC/Mrs. L.A.M. Gunasekara		12,295	-
	(Shareholding jointly held by Mrs. Gunasekera and Mr.Gunasekera)
	R. D Zilwa			-	-
	U.L Pushpakumara			-	-
	K. M Dissanayaka			-	-
1.9	Public Holding
				25th Sept.		25th Sept.
				2024		2023
	Market Capitalisation Mn.			936,750	1,000.88
	Float adjusted market capitalisation Rs. Mn.	248.63	195.1
	Number of public shareholders			830	770
	The percentage of shares held by the public (%)	26.54%	26.54%

The Company complies with option 5 of the listing rules 7.13.1 (a) as the company maintained the minimum public holding more than 20% and number of public shareholders more than 500.

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1.10 Top 20 Shareholders as at 25th Sept., 2024
	No. of
Names	Shares	%
Mr. H.A.D.U.G. Gunasekara	638,622	42.57
Estate of Late Mr Shabbir Husain Abbas Gulamhusein	223,560	14.9
People'S Leasing & Finance Plc/Mr. H.A.D.U.G. Gunasekara	155,195	10.35
Commercial Bank of Ceylon Plc/S.A. Gulamhusein	66,865	4.46
Mrs. K Gunaratnam	55,615	3.71
J.B. Cocoshell (Pvt) Ltd	54,046	3.6
Mr. K.C. Vignarajah	44,354	2.96
Mr. K. Gunaratnam (Decd)	29,548	1.97
Mr. U.I. Suriyabandara	19,141	1.28
Seylan Bank PLC/ Mr. H A D U G Gunasekera/Mrs. L.A.M. Gunasekara	12,295	0.82
Mrs. S. Mahendran	10,380	0.69
Mrs. S. Gunaratnam	9,687	0.65
Mrs. P.G. King	9,687	0.65
Ms. V. Gunaratnam	9,687	0.65
Mr. D.N.P. Rathnayake	7,149	0.48
Colombo Investment Trust PLC	6,400	0.43
Colombo Fort Investments PLC	5,500	0.37
Mrs. L.A.M. Gunasekara	5,338	0.36
Mr. S.K. Hathramani (Deceased)	4,900	0.33
Mrs. Rathnakumari Someswaran Administratrix of The Estate of Mr. Someswaran	3,646	0.24

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