AgStar : Interim Financial Statements as of 31/03/2024

AGSTAR PLC | INTERIM CONDENSED FINANCIAL STATEMENTS

FOR THE TWELVE MONTHS ENDED 31 MARCH 2024

AgStar PLC

Consolidated Statement of Profit or Loss and Other Comprehensive Income

	Three months ended 31st March	Twelve months ended 31st March
	2024	2023	Change	2024	2023	Change
(Rs.Mns)	Unaudited		Unaudited		Unaudited		Audited
Continuing operations
Revenue	1,015.93	1,225.94	-17%	7,666.13	7,458.21	3%
Cost of sales	(963.06)		(870.36)	-11%	(6,784.10)		(3,847.41)	-76%
Gross profit	52.87	355.58	-85%	882.03	3,610.80	-76%
Other income	15.36	21.33	-28%	160.88	55.13	192%
Distribution expenses	(102.35)	(68.01)	-50%	(315.16)	(240.77)	-31%
Administration expenses	(256.57)	(137.94)	-86%	(632.54)	(457.36)	-38%
Net finance income/(costs)	(7.75)		35.56	122%	82.06		(620.10)	113%
Profit/(loss) before tax	(298.43)	206.52	-245%	177.28	2,347.70	-92%
Income tax expense (charge)/reversal	140.52		(60.98)	330%	(12.08)		(688.52)	98%
Profit/(loss) from continuing operations	(157.92)	145.54	-209%	165.19	1,659.18	-90%
Discontinued operations
Profit/(loss) from discontinued operations (net of tax)	(4.96)		(0.45)	-1002%	(5.51)		(0.30)	-1765%
Profit/(loss) for the period	(162.88)	145.09	-212%	159.68	1,658.88	-90%
Other comprehensive income:
Items that will never be reclassified
to profit or loss
Deferred tax impact on revaluation reserve due to rate change	-	-	-	-	(128.43)	100%
Revaluation of property, plant and equipment	22.99	-	100%	22.99	-	100%
Deferred tax impact on revaluation of assets	(6.90)	-	-100%	(6.90)	-	-100%
Actuarial gain/(loss) on defined benefit obligations	(5.85)	(1.64)	257%	(5.85)	(1.64)	-257%
Deferred tax impact on actuarial loss	1.76		0.49	257%	1.76		0.49	257%
Other comprehensive income, net of tax	12.00		(1.15)	-1144%	12.00		(129.58)	-109%
Total comprehensive income	(150.88)	143.94	-205%	171.68	1,529.30	-89%
Profit attributable to :
Owners of the parent	(162.88)	144.72	-213%	159.68	1,668.89	-90%
Non-controlling interests	-		0.37	-100%	-		(10.01)	100%
	(162.88)	145.09	-212%	159.68	1,658.88	-90%
Total comprehensive income attributable to :
Owners of the parent	(150.88)	143.57	-205%	171.68	1,539.31	-89%
Non-controlling interests	-		0.37	-100%	-		(10.01)	100%
	(150.88)		143.94	-205%	171.68		1,529.30	-89%
Basic earnings/(loss) per share (Rs.)	(0.31)	0.30	-203%	0.35	3.42	-90%
The above figures are provisional and subject to audit.
Figures in brackets indicate deductions.

AgStar PLC

Company Profit or Loss and Other Comprehensive Income

	Three months ended 31st March		Twelve months ended 31st March
	2024	2023		Change	2024	2023		Change
(Rs.Mns)	Unaudited		Unaudited				Unaudited		Audited
Revenue	773.31	977.21	-21%	6,034.83	5,810.15	4%
Cost of sales	(767.46)		(668.83)	-15%		(5,480.81)		(3,058.63)	-79%
Gross profit	5.85	308.38	-98%	554.02	2,751.52	-80%
Other income	122.67	36.38	237%	245.54	72.10	241%
Distribution expenses	(57.77)	(37.17)	-55%	(184.63)	(124.92)	-48%
Administration expenses	(175.43)	(102.71)	-71%	(483.88)	(327.99)	-48%
Net finance income/(costs)	(12.50)		30.30	141%		85.39		(619.27)	114%
Profit/(loss) before tax	(117.17)	235.19	-150%	216.45	1,751.45	-88%
Income tax expense (charge)/reversal	109.60		(59.62)	284%		(4.82)		(565.92)	99%
Profit/(loss) for the period	(7.57)	175.57	-104%	211.63	1,185.53	-82%
Other comprehensive income:
Items that will never be reclassified
to profit or loss
Deferred tax impact on revaluation reserve due to rate change	-	-	-	-	(128.43)	100%
Revaluation of property, plant and equipment	22.99	-	100%	22.99	-	100%
Deferred tax impact on revaluation of assets	(6.90)	-	-100%	(6.90)	-	-100%
Actuarial gain/(loss) on defined benefit obligations	(5.84)	(1.63)	-257%	(5.84)	(1.63)	-257%
Deferred tax impact on actuarial loss	1.75		0.49	257%		1.75		0.49	257%
Other comprehensive income, net of tax	12.00		(1.14)	-1152%		12.00		(129.57)	-109%
Total comprehensive income	4.43	174.43	-97%	223.63	1,055.96	-79%
Profit attributable to :
Owners of the parent	(7.57)	175.57	-104%	211.63	1,185.53	-82%
Non-controlling interests	-		-				-		-
	(7.57)	175.57	-104%	211.63	1,185.53	-82%
Total comprehensive income attributable to :
Owners of the parent	4.43	174.43	-97%	223.63	1,055.96	-
Non-controlling interests	-		-	0%		-		-	-
	4.43		174.43	-97%		223.63		1,055.96	-79%
Basic earnings/(loss) per share (Rs.)	(0.02)	0.36	-104%	0.46	2.43	-81%
The above figures are provisional and subject to audit.
Figures in brackets indicate deductions.

AgStar PLC

Statements of Financial Position

	Group		Company
	As at	As at		As at	As at
	31/03/2024	31/03/2023	31/03/2024	31/03/2023
(Rs.Mns)	Unaudited	Audited		Unaudited	Audited
ASSETS
Non-current assets
Property, plant and equipment	3,016.20	3,285.91	2,731.63	2,963.13
Right of use asset	39.96	66.34	21.45	22.23
Intangible assets and goodwill	107.35	109.21	0.92	2.40
Investment property	252.20	-	475.44	211.50
Investments in subsidiaries	-	-	230.73	184.78
Investment securities	-	847.79	-	524.89
Deferred tax assets	14.25	8.29		-	-
	3,429.96	4,317.55	3,460.17	3,908.93
Current assets
Inventories	3,595.12	2,632.20	3,014.58	1,685.74
Trade and other receivables	1,050.69	796.59	840.82	449.83
Subsidy receivable	389.51	389.51	351.94	351.94
Amount due from related companies	-	-	221.43	893.43
Cash and cash equivalents	649.16	633.67		582.29	537.79
	5,684.48	4,451.97		5,011.07	3,918.72
Assets classified as held for sale	140.34	180.65		-	-
Total current assets	5,824.82	4,632.62		5,011.07	3,918.72
Total assets	9,254.78	8,950.17	8,471.23	7,827.65
EQUITY AND LIABILITIES
Equity
Stated capital	2,007.86	2,007.86	2,007.86	2,007.86
Revaluation reserve	1,354.05	1,337.96	776.54	760.45
Retained earnings	3,996.43	3,840.84		3,735.03	3,527.49
Equity attributable to owners of the parent	7,358.34	7,186.66	6,519.43	6,295.79
Non-controlling interests	-	20.63		-	-
Total equity	7,358.34	7,207.29	6,519.43	6,295.79
Non-current liabilities
Employee benefits	49.53	47.01	49.37	46.90
Deferred tax liabilities	604.27	713.34	556.53	644.61
Loans and borrowings	-	37.60	-	37.60
Lease liability	6.80	15.71		2.05	2.05
	660.60	813.66	607.95	731.15
Current liabilities
Trade and other payables	212.39	176.37	162.67	148.00
Loans and borrowings	681.26	113.40	681.26	113.40
Lease liability	0.08	8.95	0.03	0.03
Amount due to related companies	-	-	172.82	0.29
Current tax liabilities	329.81	615.85	315.28	538.98
Bank overdrafts	11.94	14.31		11.80	-
	1,235.48	928.88		1,343.86	800.70
Liabilities classified as held for sale	0.36	0.33		-	-
Total current liabilities	1,235.84	929.21		1,343.86	800.70
Total liabilities	1,896.44	1,742.88		1,951.80	1,531.85
Total equity and liabilities	9,254.78	8,950.17		8,471.23	7,827.65
	9,254.78	8,950.17	8,471.23	7,827.65
Net assets per share (Rs.)	15.09	14.74	13.37	12.91

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act No.7 of 2007.

Sgd.

Mr. Sakitha Lakshan

Manager - Finance

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Signed for and on behalf of the Board;

Sgd.	Sgd.
Mr. R.S.I. Gunawardena	Mrs. S.S. Kotakadeniya
Director	Director

May 28, 2024

AgStar PLC

Statement of Cashflows

	Group		Company
For the period ended 31st December,	2024	2023	2024	2023
(Rs.Mns)	Unaudited	Audited	Unaudited	Audited
Cash flow from operating activities
Profit before tax from continuing operations	177.28	2,347.69	216.45	1,751.45
Profit/(loss) before tax from discontinued operations	(5.51)	(0.30)	-	-
Adjustment for:
Depreciation	194.23	106.05	111.30	89.95
Amortization on intangible assets	1.48	1.53	1.48	1.48
Amortization on right-of-use asset	3.03	9.57	0.77	0.77
Interest income	(151.36)	(155.41)	(103.40)	(124.21)
Interest expenses	70.16	161.35	70.92	141.61
Trade debtors write off	9.82	8.52	8.77	4.06
Gain on disposal of property plant and equipment	(0.23)	-	(0.23)	-
Change in fair value of investment property	-	-	(11.74)	(14.98)
Subsidy write off	-	1.56	-	1.56
Provision/(reversal) of imapairment on trade receivables	4.63	(12.38)	12.54	(6.72)
Loss on Disposal of Subsidiary	5.93	-	36.00	-
Impairment loss/(reversal) on inventory	-	1.71	-	-
Provision for retirement gratuity	10.95	7.92	10.92	7.90
Operating profit before working capital changes	320.41	2,477.81	353.78	1,852.88
Changes in:
Decrease/ (increase) in inventories	(958.10)	(335.63)	(1,328.84)	276.96
Decrease/ (increase) in trade and other receivables	(265.26)	(418.94)	(414.62)	(203.98)
(Increase)/decrease in subsidy receivable	-	2,647.29	-	2,490.90
Decrease in amounts due from related companies	-	-	672.00	(290.82)
(Decrease)/ increase in trade and other payables	29.80	(2,867.02)	(1.33)	(2,732.24)
Increase/(decrease) in amounts due to related companies	-	-	172.53	(54.36)
Cash (used in)/ generated from operating activities	(873.16)	1,503.52	(546.45)	1,339.34
Interest expense paid	(70.77)	(158.74)	(70.63)	(141.32)
Income tax paid	(398.48)	(81.93)	(305.74)	-
Employee benefit paid	(14.29)	(5.12)	(14.29)	(5.12)
Net cash flow (used in)/ generated from operating activities	(1,356.70)	1,257.73	(937.11)	1,192.90
Cash flows from investing activities
Interest income received	157.47	143.60	105.69	116.02
Investment securities	847.79	(847.79)	524.89	(524.89)
Acquisition of property, plant and equipment	(162.35)	(21.51)	(99.93)	(17.96)
Addition to work in progress	(11.78)	(70.96)	(11.78)	(70.96)
Disposal of property plant and equipment	2.94	-	2.94	-
Disposal of Subsidiary company	11.47	-	(81.95)	-
Net cash used in investing activities	845.54	(796.66)	439.84	(497.79)
Cash flows from financing activities
Proceeds from loans and borrowings	2,056.65	3,880.71	2,056.67	3,787.61
Repayment of loans and borrowings	(1,526.41)	(4,061.11)	(1,526.41)	(3,963.89)
Repayment of lease liabilities	(1.19)	(11.36)	(0.29)	(0.25)
Net cash from / (used in) financing activities	529.05	(191.76)	529.97	(176.53)
Net cash increase/(decrease) in cash and cash equivalents	17.91	269.31	32.70	518.58
Cash and cash equivalents at the beginning of the year	620.19	350.88	537.79	19.20
Cash and cash equivalents at the end of the period	638.10	620.19	570.49	537.79
Analysis of cash and cash equivalent at the end of the period
Cash at bank and in hand	193.31	539.68	126.44	476.69
Short term deposits	455.85	93.99	455.85	61.10
Bank overdrafts	(11.94)	(14.31)	(11.80)	-
Cash and cash equivalents classified as held for sale	0.87	0.83	-	-
	638.10	620.19	570.49	537.79

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

AgStar PLC

Statement of Changes in Equity

(Rs.Mns)					Group
	Equity attributable to owners of the parent
	Stated		Revaluation		Retained				Non-		Total
				Total		controlling
	capital		reserve		earnings				equity
						interests
Balance as at 1st April 2022
2,007.86	1,466.39	2,173.09	5,647.34	30.65	5,677.99
Profit for the period	-	-	1,668.90	1,668.90	(10.01)	1,658.89
Other comprehensive income for the period	-	(128.43)	(1.15)	(129.58)	-	(129.58)
Total comprehensive income for the period	-	(128.43)	1,667.75	1,539.32	(10.01)	1,529.31
Balance as at 31st March 2023
2,007.86		1,337.96		3,840.84		7,186.66		20.64		7,207.30
Balance as at 1st April 2023
2,007.86		1,337.96		3,840.84		7,186.66		20.64		7,207.30
Profit for the Period	-	-	159.69	159.69	(2.66)	157.03
Other comprehensive income for the period	-	16.09	(4.10)	11.99	-	11.99
Disposal of NCI								(17.98)	(17.98)
Total comprehensive income for the period	-	16.09	155.59	171.68	(20.64)	151.04
Balance as at 31st March 2024
2,007.86		1,354.05		3,996.43		7,358.34		-		7,358.33
			Company
	Stated		Revaluation		Retained		Total
	capital		reserve		earnings		equity
Balance as at 1st April 2022	2,007.86	888.88	2,343.09	5,239.83
Profit for the year	-	-	1,185.53	1,185.53
Other comprehensive income for the period	-	(128.43)	(1.14)	(129.57)
Total comprehensive income for the period	-	(128.43)	1,184.39	1,055.96
Balance as at 31st March 2023
2,007.86		760.45		3,527.48	6,295.79
Balance as at 1st April 2023
2,007.86		760.45		3,527.48		6,295.79
Profit for the year	-	-	211.63	211.63
Other comprehensive income for the period	-	16.09	(4.09)	12.01
Total comprehensive income for the period	-	16.09	207.55	223.64
Balance as at 31st March 2024
2,007.86		776.54		3,735.03		6,519.43

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

AgStar PLC

Notes to the Financial Statements

1. Basis of Preparation
   The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standards LKAS 34 - Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31st March 2024.
   The presentation and classification of the financial statements of the previous year have been amended, where relevant, for better presentation and to be comparable with those of the current year.
   The interim condensed financial statements are presented in Sri Lankan Rupees and all values are in Millions, unless otherwise stated.
2. Segment information
   Management has determined the operating segments based on the reports reviewed by the Executive Board that are used to make strategic decisions.
   Trading - Items which are directly imported and sold without further processing are categorised under this. Non-trading- This segment includes the items which are further processed before sold.

Rs. Mns	Twelve months ended 31st March 2024		Twelve months ended 31st March 2023
		Trading	Non-trading	Total		Trading	Non-trading	Total
Revenue	4,776.34	2,889.79	7,666.13	2,741.63	4,716.58	7,458.21
Cost of sales		(4,173.49)	(2,610.61)	(6,784.10)		(1,914.06)	(1,933.35)	(3,847.41)
Gross profit	602.85	279.18	882.03	827.57	2,783.23	3,610.80
Unallocated expenses
Distribution expenses			(315.16)				(240.77)
Administrative expenses			(632.54)				(457.36)
Other income			160.88				55.13
Operating profit			95.21				2,967.79
Net finance income/(cost)			82.06				(620.10)
Profit before tax			177.28				2,347.70
Income tax expense (charge)/reversal			(12.08)				(688.52)
Profit for the period from continuing operations			165.19				1,659.17

Since the information on expenses, profit before tax, total assets and liabilities for each reportable segment are not provided to the Executive Board on regular basis, the segmented assets and liabilities are not provided in this report.

3 Stated Capital
		Number of	Value of
		shares	ordinary shares
			Rs.
As at 31st March 2024	- voting	461,289,465	1,955,067,333
	- non-voting	26,210,535	52,789,500
		487,500,000	2,007,856,833
As at 31st March 2023	- voting	461,289,465	1,955,067,333
	- non-voting	26,210,535	52,789,500
		487,500,000	2,007,856,833

1. Events after the reporting date
   There were no material events occurred after the reporting date that require adjustments to, or disclosure in the financial statements.
2. Commitments
   There are no material capital or financial commitments outstanding as at the date of the statement of financial position, which require adjustment to or disclosure in the financial statements.

6 Contingent liabilities

There are no any material contingent liabilities outstanding as at the reporting date that require adjustments in the financial statements.

Corporate guarantee issued by AgStar PLC

The guarantees given to banks on behalf of AgStar Seeds (Pvt) Limited, AgStar Cropcare (Pvt) Limited, AgStar Grains (Pvt) Limited and Mahaweli Agro Trading (Pvt) Limited amounting to Rs.262 Mn, Rs.300 Mn, Rs.860 Mn and Rs.500 Mn respectively.

Group

The guarantees given to local suppliers and governement institutions Rs. 42.79Mn.

8 Disposal of Euro Asia Teas (Pvt) Ltd

On 01st May 2023, Agstar PLC has disposed the entire of its shareholding amounting to 53.78% of Euro Asia Teas (Pvt) Ltd to LOLC Holdings PLC.

Controlling

Interest Sold

Agstar PLC

53.78%

Disposal Gain/(Loss) Computation

Total Consideration received

Net Assets Attributable to Parent

Derecognition of Non Controlling Interest

Fair Value of Net Assets Disposed

Cash and
Cash		Total
Equivalent	Disposal	Consideration of
Received	Related Costs	Disposal
Rs. 000	Rs.000	Rs.000
15,000,000	-	15,000,000
		Rs.000
		15,000,000

17,983,759

(38,911,216)

(5,927,457)

The provisional fair values of the identifiable assets and liabilities of the disposed as at the date of disposal were;
Assets	Rs.000
Property, plant and equipement	27,138,118
Intangible assets	380,396
Inventories	10,798,597
Trade and other receivables	3,861,568
Cash and cash equivalents	3,531,723
	45,710,401
Liabilities
Trade and other payables	3,439,083
Deferred tax liabilities	3,360,102
	6,799,185
Net Assets disposed	38,911,216
Fair value of identifiable net assets disposed	38,911,216
Net cash received from disposal	Rs.000
Purchase consideration received	15,000,000
(-) Disposal related costs	-
Positive cash balances	(3,531,723)
Net cash received from disposal	11,468,277

	AgStar PLC
	Notes to the Financial Statements
9 Twenty Major Share holders -Voting shares
		As at 31/03/2024
No	Name of shareholders	Number of	Holding %
shares
1	Brown & Company PLC A/C No. 1	269,038,370	58.32%
2	Sri Lanka Insurance Corporation Ltd-Life Fund	31,472,000	6.82%
2.1	Sri Lanka Insurance Corporation Ltd-General Fund	21,300,000	4.62%
3	Mr. A.P. Weerasekera	9,604,036	2.08%
4	Mrs. S.J. Karunaratne	6,741,000	1.46%
5	Industrial Asphalts (Ceylon) PLC	4,549,183	0.99%
6	DFCC Bank PLC A/C No .02	4,000,000	0.87%
6.1	DFCC Bank PLC A/C 1	1,808,385	0.39%
7	F L M C Plantations (Private) Limited	3,150,000	0.68%
8	Sampath Bank PLC/J N Lanka Holdings Company (Private) Limited	3,000,000	0.65%
8.1	Hatton National Bank PLC/JN Lanka Holdings Company (Pvt) Ltd	1,883,673	0.41%
9	N P Capital Ltd	2,012,808	0.44%
10	Mr. M.I.M. Shafie	2,000,000	0.43%
11	Dialog Finance PLC/S.A.de Silva and D.R.de Silva	1,792,420	0.39%
12	Mr. W.A.P. Perera	1,758,866	0.38%
13	MSS Investments (Private) Limited	1,683,193	0.36%
14	DFCC Bank PLC/Maskeliya Tea Exports (Pvt) Ltd	1,637,011	0.35%
15	Hatton National Bank PLC/Ruwan Prassana Sugathadasa	1,506,809	0.33%
16	Mr. S. Sivashanth	1,500,000	0.33%
17	Mr. D.N.P. Rathnayake	1,274,880	0.28%
	Total	371,712,634	80.58%
10 Five Major Share holders -Non-voting shares
		As at 31/03/2024
No	Name of shareholders	Number of	Holding %
shares
1	Brown & Company PLC	17,471,014	66.66%
2	Mr. A.P. Weerasekera	8,736,825	33.33%
3	Mr. A.B. Weerasekera	1,000	-
4	Mr. M.V.M. Gunasekara	398	-
5	Mr. S.P. Sedara	314	-
	Total	26,209,551	99.99%

11 Directors' share holdings		As at 31/03/2024	As at 31/03/2023
		Number of	Number of
		shares	shares
Mr. I.C. Nanayakkara (Non Executive Chairman)		-	-
Mr. R.S.I. Gunawardhana (Executive Deputy Chairman)		-	-
Mr. A.P. Weerasekera (Managing Director)	-Voting Shares	9,604,036	9,604,036
	-Non-Voting Shares	8,736,825	8,736,825
Ms. V. G. S. S. Kotakadeniya		-	-
Mr. D.S. K.Amarasekara		-	-
Ms. S. Wickramasinghe		-	-
Mr. R.K.A. Ranaweera		-	-
Dr. (Mrs) A.D.N. de Zoysa		-	-
Mr. W. K. D. T. Abeyrathne		-	-
Mr. P. Weerasingha		-	-
Mr. M. S. Gunawardana		-	-

12 Public holding

The percentage of public holding in voting and non-voting shares as at 31st March 2024 were,

	Public	No of Public
	holding %	Shareholders	Float adjusted market capitlisation
-Voting Shares	28.07%	4,189	Rs.997.03 Mn
-Non-Voting Shares	0.01%	6	Rs. 0.016 Mn

The float adjusted market capitalization of the Company falls under option-2 as per section 7.14.1 (b) of the Listing Rules of Colombo Stock Exchange and the Company has complied with the minimum public holding requirement applicable under the said option.

13 Market prices	Voting	Non-voting
	Rs.	Rs.
Highest during the period	13.60	7.70
Lowest during the period	6.10	6.20
As at 31st March 2024	7.70	6.20