EChannelling : Interim Financial Statements for the period ended 31st December 2021

Interim Financial Statements

For the period ended

31st Dec 2021

eChannelling PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPRIHENSIVE INCOME

For the period ended 31.12.2021

	Quarter Ended 31st Dec	Year Ended 31st December
	Un-audited	Un-audited	Un-audited	Audited
	2021	2020	2021	2020
	LKR	LKR	LKR	LKR
Revenue	58,931,216	34,558,882	193,249,235	130,061,513
Cost of Sales/Direct Cost	(12,307,414)	(7,160,241)	(42,669,493)	(24,846,842)
Gross Profit	46,623,802	27,398,641	150,579,742	105,214,671
Net Other Operating Income	370,326	488,112	619,497	1,030,714
Administrative Expenses	(25,652,081)	(17,241,879)	(80,866,407)	(70,924,284)
Marketing & Distribution Expenses	(11,192,174)	(2,025,797)	(14,468,825)	(12,309,088)
Profit From Operations	10,149,872	8,619,077	55,864,007	23,012,013
Finance Income	4,236,887	3,565,976	13,745,279	18,254,170
Finance Expenses	(207,321)	645,078	(917,396)	(1,123,645)
Net Finance (Expenses) / Income	4,029,565	4,211,055	12,827,883	17,130,525
Profit Before Taxation	14,179,437	12,830,132	68,691,890	40,142,538
Income Tax Expenses	(3,573,407)	(2,598,607)	(15,319,578)	(10,139,917)
Profit for the Period	10,606,030	10,231,524	53,372,312	30,002,621
Other Comprehensive Income
Net change in fair value of available-for-sale financial assets	57,202	423,448	(281,805)	239,453
Remeasurement of employee benefit obligation	234,207	(650,683)	795,115	1,056,449
Deferred tax impact on acturial (gain)/ loss	(56,210)	113,906	(190,828)	(295,806)
Other Comprehensive Income for the Period	235,200	(113,329)	322,482	1,000,096
Total Comprehensive Income for the Period	10,841,230	10,118,195	53,694,794	31,002,717
Earnings Per Share	0.09	0.08	0.44	0.25
Dividends Per Share	-	-	-	-

The notes to the Financial Statements form an integral part of these Financial Statements.

Figures in brackets indicate deductions.

eChannelling PLC

STATEMENT OF FINANCIAL POSITION

As at 31st December 2021

	31.12.2021	31.12.2020
	LKR	LKR
	Un-audited	Audited
ASSETS
Non Current Assets
Property, plant & equipment	2,501,180	8,594,915
Intangible assets	5,136,947	1,798,962
Leasehold right-of-use asset	3,220,256	7,201,314
Deferred tax assets	6,674,600	6,051,543
Equity Investments at FVOCI	2,106,019	2,387,824
Total Non Current Assets	19,639,002	26,034,558
Current Assets
Inventories	292,025	264,805
Trade & other receivables	79,950,561	71,208,285
Amount due from related parties	43,197,814	51,950,613
Short term investments	244,650,912	232,097,205
Cash & cash equivalents	76,327,210	10,685,228
Total Current Assets	444,418,522	366,206,136
Total Assets	464,057,524	392,240,694
EQUITY AND LIABILITIES
Equity
Stated capital	93,758,316	93,758,316
Retained earnings	250,658,531	196,681,931
Available for sale reserve	537,209	819,014
Total Equity	344,954,055	291,259,261
Non Current Liabilities
Employee benefits	8,599,470	7,767,915
Leashold right to use liability	4,573,796	8,025,855
Total Non Current Liabilities	13,173,266	15,793,770
Current Liabilities
Trade & other payables	91,799,047	76,646,285
Leashold right to use liability	5,724,554	1,355,099
Amount due to related parties	286,987	293,393
Income tax liability	8,119,615	6,892,886
Total Current Liabilities	105,930,203	85,187,663
Total Liabilities	119,103,469	100,981,433
Total Equity & Liabilities	464,057,524	392,240,694
Net Asset Per Share	2.82	2.38

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

Signed

A.R.R.D. Alahakoon

Senior Finance Manager

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

Signed for and on behalf of the board:

Signed		Signed
Rohan Fernando	Lalith Senevirathna
Chairman		Director
Date:	28.02.2022	`

Figures in the brackets indicate deductions.

The above figures are provisional and subject to audit.

eChannelling PLC

STATEMENT OF CHANGES IN EQUITY

For the Period Ended 31st December 2021
	Stated Capital	Available for-	Retained	Total
		sale Reserve	Earnings
	LKR	LKR	LKR	LKR
Balance as at 31st December 2019	93,758,316	579,561	165,918,667	260,256,544
Total Comprehensive income for the year
Profit for the year	-	-	30,002,621	30,002,621
Other comprehensive income
Actuarial gain arising from defined benefit obligation, net of tax	-	-	760,644	760,644
Fair value gain of investments valued at FVTOCI	-	239,453	-	239,453
Balance as at 31st December 2020	93,758,316	819,014	196,681,931	291,259,261
Total Comprehensive income for the year
Profit for the year	-	-	53,372,312	53,372,312
Other comprehensive income
Actuarial gain arising from defined benefit obligation, net of tax	-	-	604,288	604,288
Fair value gain of investments valued at FVTOCI	-	(281,805)	-	(281,805)
Balance as at 31st December 2021	93,758,316	537,209	250,658,531	344,954,056

Figures in the brackets indicate deductions.

The above figures are provisional and subject to audit.

eChannelling PLC

CASH FLOW STATEMENT

For the period ended	31.12.2021	31.12.2020
	Un-audited	Un-audited
	LKR	LKR
Cash Flow From Operating Activities
Profit Before Tax	68,691,890	40,142,538
Adjustments for :
Depreciation on property, plant equipment	6,723,235	8,419,941
Ammortization of right-of-use asset	2,064,367	2,057,518
Amotization on intangible assets	975,522	998,622
Provision for employee benefits	1,833,514	1,486,884
Dividend income	-	(346)
Interest income	(13,745,279)	(18,254,170)
Interest expenses	917,396	1,123,645
Fixed Assets Disposal profit	(10,000)	(55,000)
Provision for advance Payment	-	(35,000)
Provision for impairment of bad & doubtful debts	-	(807,778)
Operating Profit before Working Capital Changes	67,450,646	35,076,854
(Increase) / decrease in inventories	(27,220)	454,450
Decrease / (increase) in trade & other receivable	(10,099,754)	(16,862,538)
(Increase)/Decrease in related party receivable	8,752,799	(20,644,105)
Increase/(Decrease) in related party payable	(6,406)	(1,039,902)
Increase / (decrease) in trade & other payables	15,152,762	16,875,684
Cash Generated from Operations	81,222,827	13,860,444
Income tax paid	(13,549,256)	(3,878,781)
Employee benefits paid	(206,844)	-
Net Cash Generated from Operating Activities	67,466,727	9,981,663
Cash Flow From Investing Activities
Acquisition of property plant and equipment	(629,500)	(7,871,380)
Acquisition of intangible assets	(2,396,816)	(490,000)
Assets disposal proceeds	10,000	55,000
Proceeds from dividend income	-	346
Interest income received	1,191,571	726,128
Net Cash (used in) / Generated from Investing Activities	(1,824,745)	(7,579,906)
Cash flow from Financing Activities
Lease rental	-	(4,816,414)
Net Cash Generated from Financing Activities	-	(4,816,414)
Net Increase in Cash & Cash Equivalents	65,641,982	(2,414,657)
Cash & Cash Equivalents at beginning of the Period	10,685,228	13,099,885
Cash & Cash Equivalents at end of the Period	76,327,210	10,685,228
Analysis of Cash and Cash Equivalents
Cash at bank	76,256,302	10,647,243
Cash in hand	70,908	37,985
	76,327,210	10,685,228

Figures in the brackets indicate deductions.

The above figures are provisional and subject to audit.