Lanka Realty Investments : Interim Financial Report 30.06.2022

LANKA REALTY INVESTMENTS PLC

INTERIM FINANCIAL STATEMENTS

30TH JUNE 2022

LANKA REALTY INVESTMENTS PLC

Interim Financial Statements

	Contents Page
01	Review of Consolidated Accounts	01
02	Statement of Profit or Loss and Other Comprehensive Income	02
03	Statement of Financial Position	03
04	Statement of Changes in Equity	04
05	Statement of Cash Flows	05
06	Notes to the Interim Financial Statements	06 - 08
07	Corporate Information	09

Lanka Realty Investments PLC

Review of Consolidated Accounts

Period Ended 30th June 2022

Balance Sheet Analysis

Total Assets

Total Assets have largely remained unchanged at LKR 18,381.2 m compared with LKR 18,548.1 m as at end March 2022. Total Non-Current Assets recorded a marginal 0.2% increase to LKR 15,988.3 m and total Current Assets showcased a 8% decrease to LKR 2,292.9 m compared with LKR 15,956.8 m and LKR 2,591.2 m recorded respectively during the comparable quarter ended 31st March 2022. The marginal increase in Current Assets was primarily due to the decrease in inventories.

Total Shareholders' Funds (Net Assets)

Total Shareholders Funds decreased by 2% from LKR 9,929.0 m as at end March 2022 to LKR 9,670.7 m as at end June 2022.

Net Asset Value per Share (NAVPS)

The NAVPS was LKR 45.75 as at end June 2022 compared with the LKR 46.97 per share recorded for the financial year ended March 2022.

Loan to Value (LTV)

The LTV recorded for the quarter ended June 2022 was 24.6%. This was a marginal increase compared with the 23.8% recorded for the financial year ended March 2022.

P&L Analysis

Revenue | Expenses | Operational Profit

Overall consolidated revenue increased by 263% to LKR 491.0 m in the quarter ended 30th June 2022 compared with LKR 135.3 m in the corresponding quarter the previous year. This increase was primarily due to the increased contributions from sales at the Mulberry residential apartments and increase in rental income from HQ Colombo & Unity Plaza. As a result of the above, the corresponding direct expenses increased to LKR 476.8 m compared with LKR 81.6 m in the quarter ended 30th June 2021.

The operational loss recorded for the quarter was LKR 43.3 m compared with the operating profit of LKR 1.1 m recorded in the June 2021 quarter. The increase in operational loss was a result of the increase in direct expenses.

Profit/Loss after Tax

The Group incurred a loss of LKR 235.4 m for the June 2022 quarter compared with the loss of LKR 71.7 m reported in the corresponding quarter of the previous year.

Earnings per Share (EPS)

The EPS was LKR (1.22) per share for the quarter ended 30th June 2022, compared with LKR (0.40) per share in the corresponding period of the previous year.

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LANKA REALTY INVESTMENTS PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the Quarter Ended 30th June 2022

			GROUP		COMPANY
	Notes
	30-06-2022	30-06-2021	Change	30-06-2022	30-06-2021	Change
		LKR 000	LKR 000	%	LKR 000	LKR 000	%
Revenue		491,000	135,271	263%	46,315	19,222	141%
Direct Expenses		(476,781)	(81,638)	484%	-	-	-
Gross Profit		14,220	53,633	-73%	46,315	19,222	141%
Other Operating Income		4,101	3,619	13%	-	7	-100%
Administration Expenses		(57,168)	(46,624)	23%	(2,876)	(2,361)	22%
Selling and Distribution Expenses		(3,432)	(6,060)	-43%	-	-	-
Other Operating Expense		(1,002)	(3,428)	-71%	-	-	-
Operating Profit/Loss		(43,282)	1,140	3897%	43,439	16,868	158%
Finance Expense		(194,513)	(75,123)	159%	(22,619)	(32,777)	-31%
Finance Income		17,626	11,127	58%	134	143	-6%
Change in fair value of Investment Properties		-	-	-	-	-	-
Profit/(Loss) before tax		(220,169)	(62,856)	250%	20,954	(15,766)	233%
Tax (expense)/reversal		(15,246)	(8,896)	71%	-	-	-
Profit/(Loss) for the period		(235,415)	(71,752)	228%	20,954	(15,766)	233%
Other Comprehensive Income
Gain/(loss) on post employment benefit obligations		-	(83)	-100%	-	-	-
Gain/(loss) on property revaluation		-	-	-	-	-	-
Tax Effect on other comprehensive Income		-	20	-100%	-	-
Other comprehensive income for the year, net of tax		-	(63)	-100%	-	-	-
Total comprehensive income for the year, net of tax		(235,415)	(71,814)	228%	20,954	(15,766)	233%
Profit/(Loss) Attributable to :
Equity holders of the parent company		(258,345)	(84,754)	205%	-	-	-
Non-Controlling Interest		22,930	13,002	76%	-	-	-
		(235,415)	(71,752)	228%	-	-
Total Comprehensive Income Attributable to:
Equity holders of the parent company		(258,345)	(84,785)	205%	-	-	-
Non-controlling interest		22,930	12,971	77%	-	-	-
		(235,415)	(71,814)	228%	-	-	-
Earnings / (Loss) Per Share - LKR		(1.22)	(0.40)		0.10	(0.07)

Figures in brackets indicate deductions.

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LANKA REALTY INVESTMENTS PLC

STATEMENT OF FINANCIAL POSITION

As at 30th June 2022

			GROUP			COMPANY
	Notes	30-06-2022	31-03-2022	Change %	30-06-2022	31-03-2022	Change %
		LKR 000	LKR 000	LKR 000	LKR 000
ASSETS
Non-current assets
Property, plant and equipment		2,772,778	2,773,481	-	3	10	-75%
Intangible Assets		338,407	338,495	-	1,766	1,826	-3%
Investment property		12,868,336	12,836,064	-	-	-	-
Investment in subsidiaries		-	-	-	8,138,981	8,138,981	-
Other non-current assets		8,037	8,037	-	-	-	-
Deferred tax assets		770	770	-	770	770	-
Total Non-Current Assets		15,988,329	15,956,849	-	8,141,520	8,141,587	-
Current Assets
Inventories		1,258,865	1,468,778	-14%	-	-	-
Trade and other receivable		161,733	174,695	-7%	404	284	42%
Amount due from related parties		6,430	5,188	24%	1,106,814	1,004,612	10%
Financial assets-fair value through profit or loss		64	88	-27%	64	88	-27%
Other current assets		222,244	164,496	35%	741	772	-4%
Short-term investments		101,690	15,848	542%	-	-	-
Cash in hand and at bank		641,858	762,117	-16%	120,820	120,621	-
Total Current Assets		2,392,885	2,591,211	-8%	1,228,844	1,126,377	9%
Total Assets		18,381,214	18,548,059	-1%	9,370,364	9,267,964	1%
EQUITY AND LIABILITIES
Equity
Stated capital		7,048,663	7,048,663	-	7,048,663	7,048,663	-
Other components of equity		23,100	23,100	-	23,100	23,100	-
Revaluation Reserve		525,736	525,735	-	-	-	-
Retained earnings		2,073,155	2,331,500	-11%	387,514	366,559	6%
		9,670,654	9,928,998	-3%	7,459,276	7,438,322	-
Non-Controlling Interest		1,671,176	1,648,246	1%	-	-
Total Equity		11,341,829	11,577,244	-2%	7,459,276	7,438,322	-
Non-Current Liabilities
Interest bearing borrowings		3,304,161	3,079,779	7%	495,000	500,000	-1%
Employee benefit liabilities		15,872	16,211	-2%	-	-	-
Deferred tax liabilities		1,719,457	1,719,969	0%	-	-	-
Amount due to related parties		37,338	36,030	4%	37,338	36,030	4%
Other non current liabilities		142,327	132,720	7%	-	-	-
Total Non-Current Liabilities		5,219,153	4,984,709	5%	532,338	536,030	-1%
Current Liabilities
Trade and other payables		141,344	183,086	-23%	638	638	-
Current portion of Interest bearing borrowings		848,230	976,274	-13%	194,472	178,810	9%
Income Tax Payable		33,820	25,048	35%	-	-	-
Amount due to related parties		175,352	164,169	7%	1,171,559	1,102,300	6%
Bank Overdraft		360,932	354,630	2%	72	584	-88%
Other current liabilities		260,554	282,900	-8%	12,011	11,280	6%
Total Current Liabilities		1,820,232	1,986,106	-8%	1,378,752	1,293,613	7%
Total Liabilities		7,039,385	6,970,815	1%	1,911,089	1,829,642	4%
Total Equity and Liabilities		18,381,214	18,548,059	-1%	9,370,365	9,267,964	1%
Net Book Value Per Share (LKR)	45.75	46.97		35.29	35.19

I certify that the above financial statements comply with the requirements of the Companies Act No. 07 of 2007.

(Sgd.) S Jayawardene

Group Accountant

Signed for and on behalf of the Board by

(Sgd.) R M M J Ratnayake	(Sgd.) M H Jamaldeen
Chairman	Director
Colombo. July 29, 2022.
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