Lankem Ceylon : Quarterly Financial Report as of 31/03/2024

LANKEM CEYLON PLC

Company No. PQ 128

INTERIM FINANCIAL STATEMENTS

For the Year Ended 31st March 2024

LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - CONSOLIDATED

Revenue

Cost of Sales

Gross Profit

Other Income

Distribution Expenses

Administration Expenses

Share of Profit /(Loss) from Joint Venture

Share of Profit /(Loss) from Associates

Net Finance Costs

Profit before Tax

Tax Expense / Reversal for the year

Profit for the Year

Other Comprehensive Income /(Expense)

Gain /(Loss) on Financial Assets designated at Fair Value through Other Comprehensive Income

Tax Effect on Components of OCI

Actuarial Gain /(Loss) on Defined Benefit Obligations Revaluation Surplus

Share of Other Comprehensive Income/(Expense) of Equity-Accounted Investees (Net of Tax)

Deffered Tax impact due to change in Tax rate

Other Comprehensive Income /(Expense) for the Year, net of Tax Total Comprehensive Income /(Expense)

Profit Attributable to

Owners of the Company

Non-Controlling Interests

Total Comprehensive Income /(Expense) Attributable to

Owners of the Company

Non-Controlling Interests

Earnings per Share (Rs.)

Quarter		Quarter			Year		Year
Ended		Ended		Variance	Ended		Ended		Variance
31.03.2024	31.03.2023		%	31.03.2024	31.03.2023		%
Rs.'000		Rs.'000			Rs.'000		Rs.'000
		Restated					Restated
9,154,643	8,528,626	+	7	33,614,307	33,754,554	-	-
(6,726,597)	(6,316,572)	-	6	(25,932,681)	(23,548,402)	-	10
2,428,046	2,212,054	+	10	7,681,626	10,206,152	-	25
177,761	28,034	+	534	414,184	362,304	+	14
(594,635)	(635,450)	+	6	(2,326,840)	(2,175,094)	-	7
(1,003,222)	(837,351)	-	20	(3,393,795)	(2,805,035)	-	21
(23,872)	53,163	-	145	1,002	(165,413)	+	101
-	(178)	+	100	-	(502)	+	100
(402,427)	(535,283)	+	25	(1,899,722)	(2,455,587)	+	23
581,651	284,990	+	104	476,455	2,966,825	-	84
(4,773)	69,434	-	107	(196,194)	(631,381)	+	69
576,878		354,424	+	63	280,261		2,335,444	-	88
(2,065)	(9,808)	+	79	(18,793)	59,956	-	131
(382,679)	(62,595)	-	511	(387,888)	(79,086)	-	390
(147,051)	(6,043)	-	2,333	(147,051)	(5,958)	-	2,368
1,330,980	-	+	100	1,330,980	-	+	100
(1,839)	1,866	-	199	(1,839)	1,866	-	199
-		(749,956)	+	100	-		(749,956)	+	100
797,346		(826,536)	+	196	775,409		(773,178)	+	200
1,374,223		(472,112)	+	391	1,055,670		1,562,266	-	32
261,750	275,695	-	5	196,121	2,206,092	-	91
315,127		78,729	+	300	84,140		129,352	-	35
576,878		354,424	+	63	280,261		2,335,444	-	88
744,523	(233,860)	+	418	656,822	1,789,882	-	63
629,700		(238,252)	+	364	398,848		(227,616)	+	275
1,374,223		(472,112)	+	391	1,055,670		1,562,266	-	32
5.09	5.36			3.81	42.86

Lankem Ceylon PLC

2/9

LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY

Revenue

Cost of Sales

Gross Profit

Other Income

Distribution Expenses

Administration Expenses

Other Expenses

Net Finance Costs

Profit / (Loss) before Tax

Tax Expense

Profit / (Loss) for the Year

Other Comprehensive Income / (Expenses)

Gain on Financial Assets designated at Fair Value through Other Comprehensive Income

Revaluation Surplus

Actuarial Gain/ (Loss) on Defined Benefit Obligations Tax Effect on Components of OCI

Deffered Tax impact due to change in Tax rate

Other Comprehensive Income for the Year, Net of Tax

Total Comprehensive Income /(Expense)

Profit Attributable to

Owners of the Company

Non-Controlling Interests

Total Comprehensive Income Attributable to

Owners of the Company

Non-Controlling Interests

Quarter		Quarter			Year		Year
Ended		Ended		Variance	Ended		Ended		Variance
31.03.2024	31.03.2023		%	31.03.2024	31.03.2023		%
Rs.'000		Rs.'000			Rs.'000		Rs.'000
1,743,265	1,758,871	-	1	6,348,005	6,871,012	-	8
	-
(1,194,810)	(1,165,681)	-	2	(4,490,070)	(3,941,009)	-	14
548,455	593,190	-	8	1,857,935	2,930,003	-	37
407,035	38,774	+	950	676,408	544,760	+	24
	-
(241,292)	(351,045)	+	31	(938,738)	(929,385)	-	1
	-
203	(354,487)	+	100	(423,588)	(713,580)	+	41
(137,837)	-	-	100	(137,837)	-	-	100
(133,661)	(221,909)	+	40	(608,023)	(761,809)	+	20
442,903	(295,477)	+	250	426,157	1,069,989	-	60
-	28,016	-	100	-	27,137	-	100
442,903		(267,461)	+	266	426,157		1,097,126	-	61
(2,729)	(9,917)	+	72	(20,093)	58,796	-	134
254,614	-	+	100	254,614	-	+	100
(32,958)	(29,818)	-	11	(32,958)	(29,818)	-	11
(55,260)	23,579	-	334	(60,469)	7,088	-	953
-		(65,839)		100	-		(65,839)		100
163,667	(81,995)	+	300	141,094	(29,773)	+	574
606,570		(349,456)	+	274	567,251		1,067,353	-	47
442,903	(267,461)	+	266	426,157	1,097,126	-	61
-		-			-		-
442,903		(267,461)	+	266	426,157		1,097,126	-	61
606,570	(349,456)	+	274	567,251	1,067,353	-	47
-		-			-		-
606,570		(349,456)	+	274	567,251		1,067,353	-	47

Earnings per Share (Rs.)

8.60

(5.20)

8.28

21.32

Lankem Ceylon PLC

3/9

LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF FINANCIAL POSITION

	Consolidated				Company
	As at		As at		As at	As at		As at
	31.03.2024	31.03.2023	31.03.2022		31.03.2024	31.03.2023
	Rs.'000		Rs.'000		Rs.'000	Rs.'000		Rs.'000
			Restated		Restated			Audited
ASSETS
Property, Plant & Equipment	11,271,342	9,743,113	9,839,065		1,083,082	824,975
Investment Properties	819,497	840,844	220,877		-	-
Right of Use Assets	270,968	275,366	948,546		41,099	26,221
Intangible Assets	1,213,443	1,213,443	1,213,443		-	-
Investments in Subsidiaries	-	-	-		3,970,189	4,311,837
Investments in Associates	823,594	-	105,821		498,594	-
Investments in Joint Venture	293,163	-	163,547		-	-
Financial Assets Measured at Fair Value Through OCI	65,836	83,400	23,693		59,406	79,499
Deferred Tax Assets	-		-		-		203,458		263,927
Total Non - Current Assets	14,757,843		12,156,166		12,514,992		5,855,828		5,506,459
Inventories	5,463,046	5,502,104	3,743,877		995,840	1,089,498
Trade and Other Receivables	8,265,934	6,671,406	4,876,479		1,876,022	1,671,222
Amounts Due from Related Parties - Trade	37,132	108,187	19,416		32,123	19,269
Amounts Due from Related Parties - Non Trade	574,165	564,143	271,346		688,517	178,307
Loans Due from Related Parties	233,497	443,913	262,471		284,872	434,465
Income Tax Recoverable	34,320	43,218	60,579		23,215	23,215
Investments Classified as Fair Value Through Profit or Loss	34,128	25,935	29,479		34,128	25,935
Bank & Cash Balances	461,459	557,249	779,635		125,283	36,324
Asset Held For Sale	-		-		30,000		-		-
Total Current Assets	15,103,681		13,916,155		10,073,282		4,060,000		3,478,235
Total Assets	29,861,524	26,072,321	22,588,274		9,915,828	8,984,694
EQUITY
Stated Capital	1,282,697	1,282,697	1,282,697		1,282,697	1,282,697
Other Capital Reserves	4,833	4,833	4,833		-	-
Revaluation Reserve	2,482,986	1,921,461	2,290,499		654,315	399,701
FVTOCI Reserve	33,447	46,443	(13,996)		30,980	51,073
Retained Earnings	(419,171)		269,847		(1,671,732)		424,491		606,468
Equity attributable to Owners of the Company	3,384,793	3,525,281	1,892,301		2,392,483	2,339,939
Non-Controlling Interests	4,794,727		3,797,118		3,301,852		-		-
Total Equity	8,179,520	7,322,399	5,194,153		2,392,483	2,339,939
LIABILITIES
Interest Bearing Borrowings	4,208,162	4,552,726	3,770,960		1,531,896	1,654,174
Lease Liabilities	224,604	224,669	175,457		15,689	6,433
Deferred Income	18,551	706	1,044		-	-
Deferred Tax Liabilities	1,436,192	1,151,821	438,023		-	-
Retirement Benefit Obligations	468,644	283,000	260,716		213,032	144,315
Loans Payable to Related Parties	26,590		26,590		-		203,110		250,999
Total Non - Current Liabilities	6,382,743		6,239,512		4,646,200		1,963,727		2,055,921
Interest Bearing Borrowings	8,040,184	6,194,055	6,933,097		2,674,548	2,147,934
Lease Liabilities	67,130	56,882	56,702		12,314	4,040
Loans Payable to Related Parties	144,089	145,234	407,410		106,370	60,369
Trade and Other Payables	4,543,043	3,731,378	3,423,226		1,886,033	1,328,032
Amounts Due to Related Parties - Trade	-	-	-		7,377	2,800
Amounts Due to Related Parties Non - Trade	993,063	755,584	741,843		531,014	635,659
Income Tax Payable	255,994	521,671	167,728		-	-
Bank Overdraft	1,255,758		1,105,606		1,017,915		341,962		410,000
Total Current Liabilities	15,299,261		12,510,410		12,747,921		5,559,618		4,588,834
Total Liabilities	21,682,004		18,749,922		17,394,121		7,523,345		6,644,755
Total Equity and Liabilities	29,861,524		26,072,321		22,588,274		9,915,828		8,984,694
Net Assets per Share (Rs.)	65.76	68.49	36.76		46.48	45.46

I certify that these Financial Statements have been prepared in compliance with the requirements of the Companies Act. No. 07 of 2007.

Upekha Abeysekera

Chief Financial Officer

The Directors are responsible for the preparation and presentation of these Financial Statements.

Approved and signed for and on behalf of the Board of Directors of Lankem Ceylon PLC.

Mr. Suren Goonewardene	Mr. S.D.R.Arudpragasam
Managing Director	Chairman
Colombo
30th May 2024

Lankem Ceylon PLC

4/9

LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF CHANGES IN EQUITY

Equity Attributable to Equity Holders of the Parent

	Stated		Other Capital		FVTOCI		Revaluation		Retained		Total		Non-controlling		Total
	Capital		Reserves		Reserves		Reserves		Profit/(Loss)				Interest
Consolidated	Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000
Balance as at 1st April 2023	1,282,697	4,833	46,443		1,921,461	269,847	3,525,281	3,797,117	7,322,399
Profit for the Year	-	-	-		-	196,121	196,121	84,140	280,261
Other Comprehensive Income / (Expense) for the Year	-	-	(12,996)		561,525	(84,571)	463,958	311,451	775,409
(Net of Tax)
Effect on changes in holding of Subsidiaries	-	-	-		-	(285,860)	(285,860)	800,572	514,712
Dividend Paid	-	-	-		-	(514,708)	(514,708)	(198,554)	(713,262)
Balance as at 31st March 2024	1,282,697		4,833		33,447			2,482,986		(419,171)		3,384,792		4,794,727		8,179,519
Balance as at 1st April 2022	1,282,697	4,833	(13,996)		2,290,499	(1,711,409)	1,852,624	3,268,392	5,121,016
Restatement due to error in Subsidiary
Error in calculating deferred tax									39,677	39,677	33,460	73,137
Profit for the Year	-	-	-		-	2,206,092	2,206,092	129,352	2,335,444
Other Comprehensive Income / (Expense) for the Year	-	-	60,439		(369,038)	(107,611)	(416,210)	(356,968)	(773,178)
(Net of Tax)
Share issues by Subsidiaries	-	-	-		-	-	-	748,982	748,982
Effect on changes in holding of Subsidiaries	-	-	-		-	(156,902)	(156,902)	134,552	(22,350)
Dividend Paid	-	-	-		-	-	-	(160,652)	(160,652)
Balance as at 31st March 2023	1,282,697	4,833	46,443		1,921,461	269,847	3,525,281	3,797,117	7,322,399
								Stated		FVTOCI		Revaluation		Retained		Total
								Capital		Reserves		Reserves		Profit/(Loss)
Company								Rs. '000		Rs. '000		Rs. '000		Rs. '000		Rs. '000
Balance as at 1st April 2023							1,282,697	51,073	399,701	606,468	2,339,939
Profit for the Year							-	-	-	426,157	426,157
Other Comprehensive Income /(Expense) for the Year (Net of Tax)						-	(20,093)	254,614	(93,426)	141,095
Dividend Paid								-	-	-	(514,708)	(514,708)
Balance as at 31st March 2024								1,282,697		30,980		654,315		424,491		2,392,483
Balance as at 1st April 2022							1,282,697	(8,542)	468,221	(469,790)	1,272,586
Profit for the Year							-	-	-	1,097,126	1,097,126
Other Comprehensive Income /(Expense) for the Year (Net of Tax)						-	59,615	(68,520)	(20,868)	(29,773)
Balance as at 31st March 2023							1,282,697	51,073	399,701	606,468	2,339,939

Lankem Ceylon PLC

5/9

LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF CASH FLOWS

	Consolidated	Company
For the Year Ended 31st March	2024	2023		2024			2023
	Rs.'000		Rs.'000	Rs.'000			Rs.'000
Cash Flows from Operating Activities
Profit before Tax	476,455	2,966,825		426,157			1,069,989
Adjustments for :
Depreciation / Amortization	432,011	478,104		56,852			55,944
Dividend Income	-	(1,827)		(247,187)			(415,600)
Loss /(Gain) on disposaI of Investment in Subsidiaries	-	(83,857)		137,787			(99,151)
Interest Expense	2,267,852	2,511,482		786,982			940,529
Amortization of Deferred Income	(23,262)	(338)		-			-
(Gain) / Loss on Disposal of Property, Plant & Equipment	(7,573)	(13,543)		-			(881)
Net Exchange Loss/(Gain)	(112,788)	121,061		(37,480)			43,677
Interest Income	(247,260)	(180,670)		(133,397)			(226,111)
Provision for Retirement Benefit Obligation	243,637	65,730		42,425			25,949
Fair value (Gain) / Loss on Financial Assets Measured at FVTPL	(8,082)	3,714		(8,082)			3,714
Write back of Creditors	(3,331)	(7,229)		(3,331)			(3,728)
Share of Loss/ (Profit) of Associates	-	502		-			-
Share of Loss/ (Profit) of Joint Venture	(1,002)	165,413		-			-
Provision for Impairment of Investments Subsidiaries	-	-		(124,037)			244,202
Provision/(Reversal) for Impairment of Trade Receivable	(60,013)	128,745		(60,343)			87,361
Provision / (Reversal) for Impairment of Amount due Related Parties	(33,480)	29,121		-			8,120
Provision for Obsolete Inventories	66,146		173,430		(2,336)			30,867
Operating Profit/ (Loss) before Working Capital Changes	2,989,309	6,356,663		834,010			1,764,881
(Increase) / Decrease in Inventories	(27,088)	(1,931,657)		95,994			(190,996)
(Increase) / Decrease in Trade and Other Receivables	(1,534,515)	(1,943,500)		(144,457)			(819,799)
(Increase) / Decrease in Amounts due from Related Parties	317,000	(592,131)		(536,364)			(110,574)
Increase / (Decrease) in Trade and Other Payables	864,493	301,705		588,262			(22,525)
Increase / (Decrease) in Amounts due to Related Parties	(192,303)		13,767		(201,026)			(94,727)
Cash generated from Operations	2,416,896	2,204,848		636,418			526,260
Income Tax Paid	(573,576)	(397,458)		-			(879)
Interest Paid	(1,841,401)	(2,463,579)		(654,028)			(696,247)
Gratuity Paid	(57,993)	(33,914)		(5,673)			(17,414)
Gratuity Refund from Planned Assets	-		(15,490)		-			-
Net Cash Generated from/( used in) Operating Activities	(56,074)	(705,594)		(23,283)			(188,280)
Cash Flows from Investing Activities
Purchase & Construction of Property, Plant & Equipment	(403,664)	(303,476)		(50,539)			(47,347)
Purchase & Construction of Investment Property	-	(5,296)		-			0
Acquisition of Shares in Subsidiary	-	-		(125)			-
Proceeds from Disposal of Subsidiary shares	328,023	34,091		328,023			34,094
Investments in Associates	(650,000)	-		(325,000)			-
Interest Received	24,774	28,584		592			105
Dividends Received	-	1,827		247,187			415,600
Proceeds on Disposal of Property, Plant & Equipment / Investment Property	10,752	135,070		-			30,965
(Investment in)/ Proceeds from Disposal of Financial Assets measured at FVTPL	(111)	-		-			-
Investment in Financial Assets measured at FVOCI	4,568	(170)		-			-
Investment in Non-Controlling Interests	-	(56,443)		-			-
Investment in JV	(294,000)	-		-			-
Proceeds from disposal of Associate	-		189,176		-			189,176
Net Cash generated from / (used in) Investing Activities	(979,659)	23,363		200,138			622,593
Cash Flows from Financing Activities
Share issued to Non-Controlling Interest	-	748,982		-			-
Capital Grants Received	41,107	-		-			-
Dividend Paid	(713,262)	(160,652)		(514,708)			-
Loans Granted to Related Parties	-	-		(16,375)			(227,197)
Proceeds from Long Term Loans	1,471,327	1,419,384		325,000			148,000
Repayment of Long Term Loans and Lease Liabilities	(1,816,861)	(1,446,901)		(320,401)			(364,776)
Net Lease Payment					-
Net Movement in Short Term Borrowings	1,453,791	46,927		416,515			91,304
Loans Obtained from Related Parties	122,000	26,590		172,000			11,206
Settlement of Loans Obtained from Related Parties	-	(262,176)		(81,889)			(214,002)
Settlement of Loans Granted to Related Parties	45,000	-		-			-
Rights Issue by Subsidiaries	186,689	-		-			-
Net Cash generated from / (used in) Financing Activities	789,790		372,154		(19,858)			(555,465)
Net Increase/ (Decrease) in Cash & Cash Equivalents	(245,942)	(310,077)		156,997			(121,152)
Cash & Cash Equivalents at the beginning of the Period	(548,357)		(238,280)		(373,676)			(252,524)
Cash & Cash Equivalents at the end of the Period	(794,299)	(548,357)		(216,679)			(373,676)
Analysis of Cash & Cash Equivalents at the end of the Period
Cash in Hand & Bank	461,459	557,249		125,283			36,324
Bank & Other Borrowings	(1,255,758)		(1,105,606)		(341,962)			(410,000)
	(794,299)	(548,357)		(216,679)			(373,676)

Lankem Ceylon PLC

6/9

LANKEM CEYLON PLC

Company No. PQ 128

OPERATING SEGMENT INFORMATION

Information based on the Group's Operating Segments

Segment Revenue - Consolidated

	Segment Revenue			Inter Segment			Net Revenue
For the Year Ended 31st March	2024	2023
	Rs.'000			Rs.'000
Consumer	8,074,731	7,521,898
Industrial	23,912,430	26,216,467
Leisure	2,123,011	1,227,120
Less-Inter Segment Revenue	(495,865)		(1,210,931)
	33,614,307	33,754,554
Segment Results - Consolidated
	Operating Profit			Net Finance Cost			Profit /(Loss)	before Tax
For the Year Ended 31st March	2024	2023			2024			2023			2024			2023
	Rs.'000			Rs.'000			Rs.'000			Rs.'000			Rs.'000			Rs.'000
Consumer	622,645	452,838			(217,412)			(161,641)			405,234			245,163
Industrial	1,358,699	5,438,821			(1,542,100)			(1,845,293)			(182,399)			3,474,148
Leisure	311,046	(252,410)			(137,299)			(318,203)			173,747			(570,613)
Others	82,785		(50,922)			(2,911)			(130,450)			79,874			(181,872)
	2,375,175	5,588,327			(1,899,722)			(2,455,587)			476,456			2,966,825

Lankem Ceylon PLC

7/9

LANKEM CEYLON PLC

Company No. PQ 128

Notes to the Financial Statements

1 The Interim Financial Statements have been prepared in accordance with the accounting policies set out in the audited Financial Statements for the year ended 31st March 2023 and in accordance with LKAS 34 - Interim Financial Reporting.

1. The presentation and classification of the Financial Statements of the previous period, have been amended, where relevant, for better presentation and to be comparable with those of the current period.
2. The Board of Directors of Lankem Ceylon PLC resolved on 19th July 2023 the sale of the Company's 100% equity stake in JF Packaging
   Limited (JFP) to subsidiary company ACME Printing & Packaging PLC (ACME). The Boards of the two companies agreed on a consideration of Rs.4,515,000,000/- for the proposed transaction and have also agreed for the settlement of the said consideration by a private placement to the Company of 430,000,000 ordinary shares of ACME, priced at Rs. 10.50 per share subject to the approval of the Securities and Exchange Commission being obtained by ACME for a waiver under Rule 5.4(b) of the Listing Rules. The private placement of shares would increase the aggregate holding of the Company in ACME to 86.45% and would synergize the ACME and JFP lines of business, whilst consolidating all the businesses in the packaging cluster of the group under one holding company to help the group maximize the synergies of operating as one cluster. The transaction constitutes a major transaction in terms of Section 185 of the Companies Act No.7 of 2007 and Shareholder approval was obtained at the Extraordinary General Meeting of the Company held on 22nd November 2023. By letter dated 6th May 2024 addressed to ACME the Securities and Exchange Commission communicated its decision not to grant approval for the waiver under Rule 5.4(b) of the Listing Rules as they were of the view that that the minority shareholders of ACME were inadequately represented in the approval process at the Extraordinary General Meeting of ACME held on 22nd November 2023. ACME has now requested the Securities and Exchange Commission to review its decision in terms of the provisions of the SEC Act.
3. On 29th March 2024, the Company accepted 5,024,472 Ordinary shares in Consolidated Tea Plantations Limited (CTPL) against amounts due from CTPL and made a further direct investment in 6,018,518 Ordinary shares of CTPL, at a price of Rs. 54 per share. Total value of the investment was Rs. 596,321,460/-. Consequent to the issue of shares of CTPL, to the Company and other related entities, and the Company having also transferred on 29th March 2024 a component of its shares in CTPL to a related company, the direct equity holding of the Company in CTPL has reduced to 34.23% from 47.56%. However, the Company together with its subsidiary company Ceylon Tapes (Pvt) Limited, holds 41.4% of the issued share capital of CTPL.
4. Further to the decision made by the Board of Directors of the Group's subsidiary Marawila Resorts PLC ("the Company) on 15th December 2023 and the requisite shareholder approval being obtained at the Extraordinary General Meeting held on 7th March 2024, the Stated Capital of the Company has been reduced from Rs. 1,565,346,778/- represented by 351,923,389 fully paid ordinary shares to Rs. 550,000,000/- represented by 351,923,389 fully paid ordinary shares by writing off a sum of Rs. 1,015,346,778/- from the accumulated losses as of 31st March 2023 of Rs. 1,028,287,057/-, against the Stated Capital.
5. The Board of Directors of the Group's subsidiary Beruwala Resorts PLC ("the Company) have resolved on 25th April 2024, that subject to determination by the Company's Shareholders by a Special Resolution to be passed at an Extraordinary General Meeting of the Company to be held on 19th July 2024, the Company's capital be re-structured by means of a reduction to its stated capital without effecting any change to the number of the Company's issued and fully paid ordinary shares and accordingly that, the Company's stated capital of
   Rs.460,653,154/- represented by 700,544,295 fully paid ordinary shares be reduced to Rs. 120,000,000/- represented by 700,544,295 fully paid ordinary shares; and the accumulated losses of the company as of 31st March 2023 being Rs.470,903,318/- (as per the Audited Financial Statements for the year ended 31st March 2023) such reduction be effected by writing off the accumulated losses of the Company against its Stated Capital to the extent of a sum of Rs. 340,653,154/- without effecting any change to the number of fully paid ordinary shares of the Company, which accumulated losses would, consequent thereto, be reduced to Rs. 130,250,164/-.
6. Additional provisions were taken into consideration when assessing the deferred tax liability/asset in C W Mackie PLC, Subsidiary of Lankem Ceylon PLC, as a result the retained earnings of the Group has changed as follows;

	Consolidated
	31.03.2023	31.03.2022
Net Decrease in Deferred tax liability	(53,809)	(73,137)
Net increase in retained earnings	53,809	73,137
8 Subsequent to the reporting period, no circumstances	have arisen that would require	adjustments to or disclosures in the financial

9 There has been no significant change in the nature of the contingent liabilities which were disclosed in the audited financial statements for the year ended 31st March 2023 other than disclosed below:

Corporate Guarantees issued by Lankem Ceylon PLC to related companies have been changed as follows

Name of the Company	Rs'000
Corporate Guarantee issued to Kotagala Plantations PLC	230,000
Corporate Guarantee issued to SunAgro LifeScience Limited	420,000
Corporate Guarantee issued to J.F. Packaging Limited	107,694
Cancellation of Corporate Guarantee issued to Agarapatana Plantations PLC	200,000
Cancellation of Corporate Guarantee issued to Lankem Developments PLC	62,080
Cancellation of Corporate Guarantee issued to J.F. Packaging Limited	117,360

Lankem Ceylon PLC

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LANKEM CEYLON PLC

Company No. PQ 128

Notes to the Financial Statements

1. The figures in the Financial Statements are provisional and subject to audit.
2. Share Information

As at 31st March	2024	2023
Stated Capital (Rs.'000)	1,282,697	1,282,697
Number of Ordinary Shares (Voting) Issued	51,470,757	51,470,757
12 Market Price recorded during the quarter		31.03.2024	31.03.2023
		Rs.	Rs.
Highest		70.00	98.00
Lowest		50.00	65.00
Last traded price		69.70	75.00

13 Directors direct shareholdings as at 31.03.2024

Name of Director	No. of Shares
Mr. Anushman Rajaratnam	137,411

1. The Percentage of Shares held by the Public as at 31.03.2024 was 13.98%
2. The applicable option under Colombo Stock Exchange Rule 7.13.1 (i) (b) on Minimum Public Holding is Option 2 and the Float Adjusted Market Capitalization as at 31.03.2024 was Rs. 489,301,604.34.
3. The number of Public Shareholders as at 31.03.2024 were 2,343.
4. 20 Major Shareholders as at 31.03.2024

Full Name Of Shareholder	No. of Shares	%
The Colombo Fort Land And Building PLC	28,423,233	55.22
Amana Bank PLC/E.B. Creasy & Company PLC	9,011,079	17.51
C M Holdings PLC	2,716,767	5.28
Associated Electrical Corporation Ltd	1,414,476	2.75
Colombo Fort Investments PLC	1,290,673	2.51
Darley Butler & Company Ltd	536,614	1.04
Colombo Investment Trust PLC	495,000	0.96
Guardian Asset Management Ltd	400,300	0.78
Mr. Subramaniam Vasudevan	389,000	0.76
E.B. Creasy & Company PLC	388,567	0.75
Sri Lanka Insurance Corporation Ltd-General Fund	306,169	0.59
Capital Investments Limited	274,000	0.53
Hatton National Bank PLC/Sri Dhaman Rajendram Arudpragasam	250,000	0.49
Union Investments Private Ltd	222,800	0.43
Macksons Holdings (Pvt ) Ltd	160,209	0.31
People's Leasing & Finance PLC/Hi Line Trading (Pvt) Ltd	151,767	0.29
A E C Properties (Pvt) Ltd.	150,000	0.29
Amana Bank PLC/Hi-Line Trading Pvt Ltd	139,327	0.27
Seylan Bank PLC/Senthilverl Holdings (Pvt) Ltd	138,465	0.27
Mr. Anushman Rajaratnam	137,411	0.27
	46,995,857	91.30

Lankem Ceylon PLC

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