Equity Two : Quarterly Financial Report as of 31 03 2024

EQUITY TWO PLC

A Carson Cumberbatch Company

Condensed Interim Financial Statements For the year ended 31st March 2024

Equity Two PLC

Statement of Profit or Loss and Other Comprehensive Income

(All figures are in Sri Lankan Rupees Thousands)

	Three months ended		Year ended
	31st March			31st March
	2024	2023	Change %		2024	2023	Change %
Revenue	53,655	39,871	35	181,457	146,116	24
Direct costs	(15,579)	(14,613)	7	(63,271)	(53,517)	18
	38,076	25,258	51	118,186	92,599	28
Other income	258	2,792	(91)	967	3,332	(71)
Net gain arising from changes in fair value of
investment properties	191,712	144,433	33	191,712	144,433	33
	230,046	172,483	33	310,865	240,364	29
Administrative and other operating expenses	(5,232)	(3,882)	35	(17,315)	(15,374)	13
Operating profit	224,814	168,601	33	293,550	224,990	30
Finance income	13,738	13,244	4	54,322	31,961	70
Finance costs	(2,905)	(2,518)	15	(6,808)	(6,807)	-
Net finance income	10,833	10,726	1	47,514	25,154	89
Profit before taxation	235,647	179,327	31	341,064	250,144	36
Income tax expense	(10,858)	(10,468)	4	(44,857)	(27,737)	62
Deferred taxation	(57,751)	(44,411)	30	(58,512)	(120,923)	(52)
Profit for the year	167,038	124,448	34	237,695	101,484	134
Other comprehensive income
Items that will never be reclassified into profit or
loss
Actuarial gain / (loss) from valuation of employee
benefits	(936)	323	(390)	(936)	323	(390)
Related tax	281	(97)	(390)	281	(97)	(390)
Total other comprehensive income for the year	(655)	226	(390)	(655)	226	(390)
Total comprehensive income for the year	166,383	124,674	33	237,040	101,710	133
Earnings per share (Rs.)	5.39	4.01		7.67	3.27
Dividend per share (Rs.)*	0.50	0.50		1.00	0.50

Change % represents the percentage change in the current period's results compared to the corresponding period of the previous year.

* Dividend per share is based on the proposed / interim dividends.

Figures in brackets indicate deductions.

Page 1

Equity Two PLC

Statement of Financial Position

(All figures are in Sri Lankan Rupees Thousands)

		31.03.2023
As at	31.03.2024	(Audited)
ASSETS
Non-current assets
Investment properties	1,915,692	1,720,595
Investment in fixed deposits	217,164	177,987
Total non-current assets	2,132,856	1,898,582
Current assets
Trade and other receivables	31,585	22,822
Investment in fixed deposits	78,380	68,944
Fair value through profit or loss financial assets	38,180	-
Cash and cash equivalents	8,205	12,180
Total current assets	156,350	103,946
Total assets	2,289,206	2,002,528
EQUITY AND LIABILITIES
Equity
Stated capital	444,092	444,092
Capital reserves	750	750
Revenue reserves	1,288,289	1,066,576
Total equity	1,733,131	1,511,418
Non-current liabilities
Refundable rental deposits	40,126	58,966
Deferred tax liability	471,475	413,244
Employee benefits	2,571	1,286
Total non-current liabilities	514,172	473,496
Current liabilities
Trade and other payables	9,906	8,878
Deferred revenue	23,531	4,030
Current tax liabilities	8,466	4,706
Total current liabilities	41,903	17,614
Total liabilities	556,075	491,110
Total equity and liabilities	2,289,206	2,002,528
Net assets per share (Rs.)	55.91	48.76

The Statement of Financial Position as at 31st March 2024 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the year then ended as disclosed in pages 1 to 4 have been drawn up from unaudited financial statements.

I certify that these financial statements are in compliance with the requirements of Companies Act, No. 7 of 2007.

(Sgd).

L.C.D. Prasanga

Finance Manager

Carsons Management Services (Private) Limited

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

Approved and signed on behalf of the managers,	Approved and signed on behalf of the board,
(Sgd).	(Sgd).	(Sgd).
V.R. Wijesinghe	A.P. Weeratunge	K.C.N. Fernando
Director	Director	Director
Carsons Management Services (Private) Limited

Colombo

20th May 2024

Page 2

Equity Two PLC

Statement of Changes in Equity

(All figures are in Sri Lankan Rupees Thousands)

	Stated	Capital	Revenue	Total
	capital	reserves	reserves	equity
Balance as at 01st April 2023	444,092	750	1,066,576	1,511,418
Profit for the year	-	-	237,695	237,695
Other comprehensive income for the year	-	-	(655)	(655)
Total comprehensive income for the year	-	-	237,040	237,040
Forfeited dividends	-	-	173	173
First interim dividend 2023/24	-	-	(15,500)	(15,500)
Balance as at 31st March 2024	444,092	750	1,288,289	1,733,131
Balance as at 01st April 2022	444,092	750	998,516	1,443,358
Surcharge tax for the year of assessment 2020/21	-	-	(18,178)	(18,178)
Balance as at 01st April 2022 (Adjusted)	444,092	750	980,338	1,425,180
Profit for the year	-	-	101,484	101,484
Other comprehensive income for the year	-	-	226	226
Total comprehensive income for the year	-	-	101,710	101,710
Forfeited dividends	-	-	28	28
First interim dividend 2022/23	-	-	(15,500)	(15,500)
Balance as at 31st March 2023	444,092	750	1,066,576	1,511,418

Figures in brackets indicate deductions.

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Equity Two PLC

Statement of Cash Flows

(All figures are in Sri Lankan Rupees Thousands)

Year ended 31st March	2024	2023
Cash flows from operating activities	341,064
Profit before taxation	250,144
Adjustments for:	6,808
Finance costs	6,807
Finance income	(53,642)	(28,680)
Net change in fair value through profit or loss financial assets	(680)	(3,281)
Net gain arising from changes in fair value of investment properties	(191,712)	(144,433)
Provision for employee benefits	349	324
Write off of advances	-	1,679
Amortization of deferred revenue	(6,659)	(4,574)
Operating profit before working capital changes	95,528	77,986
(Increase) / decrease in trade and other receivables	(8,763)	3,832
Increase / (decrease) in trade and other payables	(16,474)	600
Operating profit after working capital changes	70,291	82,418
Rental deposits received	3,391	11,694
Rental deposits refunded	(2,067)	-
Income tax paid	(23,426)	(20,672)
Surcharge tax paid	-	(18,178)
Net cash generated from / (used in) operating activities	48,189	55,262
Cash flows from investing activities	(3,385)
Additions to investment properties	(5,744)
Redemption of / (investment in) fair value through profit or loss financial assets	(37,500)	47,000
Withdrawal of / (investment in) fixed deposits	(9,277)	(154,424)
Interest received	14,306	10,854
Net cash generated from / (used in) investing activities	(35,856)	(102,314)
Cash flows from financing activities	(15,496)
Dividend paid	(15,488)
Interest paid	(812)	(1,892)
Net cash generated from / (used in) financing activities	(16,308)	(17,380)
Net increase / (decrease) in cash and cash equivalents	(3,975)	(64,432)
Cash and cash equivalents at the beginning of the year	12,180	76,612
Cash and cash equivalents at the end of the period	8,205	12,180
Statement of cash and cash equivalents
Cash at bank and in hand	8,205	12,180
Placements with banking and financial institutions	-	-
Cash and cash equivalents for the cash flow statement	8,205	12,180

Figures in brackets indicate deductions.

Page 4

Equity Two PLC

Notes to the Interim Financial Statements

(All figures are in Sri Lankan Rupees Thousands)

1. BASIS OF PREPARATION OF INTERIM FINANCIAL STATEMENTS
   The Interim Financial Statements of the Company have been prepared using the same accounting policies and methods as the audited financial statements for the year ended 31st March 2023, and are in compliance with Sri Lanka Accounting Standard LKAS 34 - "Interim Financial Reporting". The provisions of the Companies Act, No. 7 of 2007 have been considered in preparing these Interim Financial Statements.
2. EVENTS AFTER THE REPORTING PERIOD
   Subsequent to the reporting period, no circumstances have arisen which would require adjustments to or disclosure in the financial statements, other than disclosed in Note 7.1.
3. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
   There were no material contingent liabilities and capital commitments.
4. LIABILITIES FOR EXPENDITURE
   Management fees and other similar expenses for the period have been accounted for in full in the interim financial statements.
5. COMPARATIVE FIGURES
   Previous period's figures and phrases have been re-arranged wherever necessary to conform to the current period's presentation.
6. STATED CAPITAL
   The Stated Capital of the Company as at 31st March 2024 was Rs. 444,092,098/35 consists of 31,000,000 fully paid Ordinary Shares.
7. DIVIDENDS

Year ended 31st March	2024	2023
Dividends paid during the year
First interim dividend 2022/23 (50 cents per share)	-	15,500
First interim dividend 2023/24 (50 cents per share)	15,500	-
Dividend proposed during the year
Second interim dividend 2023/24 (50 cents per share) (note 7.1)	15,500	-
Total dividends	31,000	15,500
Dividend per share (Rs.)	1.00	0.50

7.1 After satisfying the solvency test in accordance with Section 57 of the Companies Act No. 07 of 2007, the Directors of the Company have approved a second interim dividend of Rs.0.50 (50 cents) per Ordinary share for the year ended 31st March 2024 amounting to Rs.15,500,000/-. The entitlement/ record date for the above second interim dividend was 09th April 2024.

1. GOING CONCERN
   Based on currently available information, the directors are satisfied that the Company will continue its operations in the foreseeable future.
2. RELATED PARTY TRANSACTIONS

Year ended 31st March	2024	2023
Transactions with the parent company
Dividends paid, net of WHT	11,709	11,701
Transactions with affiliate companies
Management and support services fees paid	7,582	7,407
Rent and parking fees received	35,755	30,667

Page 5

Equity Two PLC

Notes to the Interim Financial Statements

(All figures are in Sri Lankan Rupees Thousands)

10. TWENTY MAJOR SHAREHOLDERS AS AT 31ST MARCH 2024
		Number of
	Name of Shareholders	Shares	%
1	Equity One Limited A/C No.1	27,549,456	88.87
2	Bank of Ceylon A/C Ceybank Unit Trust	2,198,192	7.09
3	Mr. K.C. Vignarajah	108,301	0.35
4	Tranz Dominion, L.L.C.	55,480	0.18
5	Mrs. C.A.D.S. Woodward	52,073	0.17
6	Miss. V.K. Ramanayake	50,000	0.16
7	Mrs. C.L. Ramanayake	50,000	0.16
8	Mr. L.L. Hettiarachchi	29,600	0.10
9	Mr. P. Somadasa	28,679	0.09
10	Amana Bank PLC/Hi-Line Trading (Pvt) Ltd	25,337	0.08
11	Miss. C.M. Wickramasekera	25,300	0.08
12	Union Investments Private Ltd	25,200	0.08
13	Mr. A.A. Noordeen	23,496	0.08
14	People's Leasing & Finance PLC/Dr. H.S.D. Soysa & Mrs. G. Soysa	19,000	0.06
15	Mrs. S. Vignarajah	18,309	0.06
16	Mr. S.N.C.W.M.B.C. Kandegedara	16,200	0.05
17	Mr. J.B. Hirdaramani	16,000	0.05
18	Mrs. J. Aloysius	15,900	0.05
19	Dialog Finance PLC/A.S.M. Shiyam	14,781	0.05
20	Mr. H.P. Bonifass	14,000	0.05

11. PUBLIC HOLDING

The Company is in compliance with the Minimum Public Holding requirements for Companies listed on the Diri Savi Board as per Rule 7.13.1 (i) (b) of the Listing Rules of the Colombo Stock Exchange, under Option 2, i.e. Float- Adjusted Market Capitalization of less than Rs.1 Billion with 200 Public Shareholders and a Public Holding

	percentage of 10%.
	The Company's Public Holding as at 31st March 2024
	Market Capitalization of the Public Holding	Rs.141.68 Million
	Number of public shareholders	2,021
	Percentage of ordinary shares held by the public	11.12%
12. DIRECTORS SHAREHOLDING AS AT 31ST MARCH 2024
		No. of Shares
	Mr. E. H. Wijenaike (Chairman)	-
	Mr. K.C.N. Fernando	3,600
	Mr. A.P. Weeratunge	-
	Mr. P.D.D. Fernando	-
	Mr. S. Marimuthu	550
	INVESTOR INFORMATION

13. SHARE VALUATION

As at/ for the three months ended 31st March 2024

Last traded price per share (Rs.)	41.10
Highest price per share for the period (Rs.)	41.70
Lowest price per share for the period (Rs.)	33.00
Market capitalisation	Rs.1,274.10 Million

Page 6

Corporate Information

NAME OF THE COMPANY	Equity Two PLC
	(A Carson Cumberbatch Company)
COMPANY REGISTRATION NO.	PQ 34
LEGAL FORM	A Public Quoted Company with Limited Liability incorporated in Sri Lanka in 1990.
	Official listing of the Colombo Stock Exchange was obtained in November 1994.
PARENT AND ULTIMATE	Equity One Limited is the immediate Parent Company of Equity Two PLC. Carson
CONTROLLING ENTITY	Cumberbatch PLC is the Parent Company of Equity One Limited and Bukit Darah
	PLC is the Ultimate Parent and Controlling Entity of Equity One Limited.
DIRECTORS	Mr. E. H. Wijenaike (Chairman)
	Mr. K.C.N. Fernando
	Mr. A. P. Weeratunge
	Mr. P. D. D. Fernando
	Mr. S. Marimuthu
PLACE OF BUSINESS	No. 61, Janadhipathi Mawatha,
	Colombo 01, Sri Lanka.
	Tel : [phone]
	Fax: [phone]
BANKERS	Standard Chartered Bank
	Commercial Bank of Ceylon PLC
	Hatton National Bank PLC
	Nations Trust Bank PLC
	DFCC Bank PLC
	National Development Bank PLC
	Sampath Bank PLC
	SBI Sri Lanka
AUDITORS	Messrs. KPMG
	Chartered Accountants
	No.32A, Sir Mohamed Macan Marker Mawatha,
	Colombo 03, Sri Lanka.
	Tel: [phone]
	Fax:[phone]
MANAGERS & SECRETARIES	Carsons Management Services (Private) Limited
	No. 61, Janadhipathi Mawatha,
	Colombo 01, Sri Lanka.
	Tel : [phone]
	Fax: [phone]
REGISTERED OFFICE	No. 61, Janadhipathi Mawatha,
	Colombo 01, Sri Lanka.
	Tel : [phone]
	Fax: [phone]
CORPORATE WEBSITE	www.carsoncumberbatch.com

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