Lanka Walltiles PLC

Provisional Financial Statements

For the Six months ended 30th September 2022
 Lanka Walltiles PLC
Provisional Financial Statements
For the Six months ended 30th September 2022

Statement of Financial Position

GROUP COMPANY
As at 30.09.2022 31.03.2022 30.09.2022 31.03.2022
(Unaudited) (Adjusted) (Unaudited) (Adjusted)
Rs.'000 Rs.'000 Rs.'000 Rs.'000
ASSETS
Non-current assets
Property, plant & equipment 19,594,780 18,973,756 5,443,827 4,950,952
Consumable biological assets 597,522 595,643 - -
Investment properties 813,619 813,619 - -
Intangible assets 53,950 57,721 - -
Investments in subsidiaries - - 1,562,096 1,562,096
Investments in associates 180,029 177,920 - -
Right of use assets 293,718 309,436 32,888 45,658
Total non-current assets 21,533,617 20,928,095 7,038,811 6,558,706
Current assets
Inventories 16,090,516 8,388,233 3,085,191 1,479,947
Trade and other receivables 9,091,551 6,767,705 1,968,626 792,407
Contract assets 36,498 29,342 - -
Amounts due from related parties 49,464 52,533 263,759 119,378
Income tax receivable 129,696 17,586 - -
Short term investments 4,209 4,008 4,209 4,008
Cash and cash equivalents 4,407,222 7,346,071 543,847 1,029,771
Total current assets 29,809,156 22,605,478 5,865,632 3,425,511
Total assets 51,342,773 43,533,573 12,904,443 9,984,217

EQUITY AND LIABILITIES

Stated capital 787,765 787,765 787,765 787,765
Reserves 3,536,480 3,536,480 2,057,891 2,057,891
Retained earnings 15,317,488 12,802,729 4,776,013 4,342,355
Shareholders' funds 19,641,733 17,126,974 7,621,670 7,188,011
Non controlling interest 6,089,869 5,441,659 - -
Total equity 25,731,602 22,568,634 7,621,670 7,188,011
Non-current liabilities
Interest bearing liabilities 2,207,482 2,363,591 7,577 6,586
Deferred tax liabilities 2,088,285 1,996,380 627,412 628,461
Retirement benefit liability 940,434 912,379 135,899 123,617
Deferred income & capital grants 110,311 113,324 - -
Total non-current liabilities 5,346,513 5,385,674 770,889 758,664
Current liabilities
Trade and other payables 5,621,782 5,526,697 1,995,827 1,094,960
Contract liability 253,946 113,660 90,204 19,591
Income tax liabilities 638,395 1,660,751 128,120 616,199
Amounts due to related parties 89,367 121,365 587,512 20,784
Current portion of interest bearing liabilities 13,661,170 8,156,793 1,710,221 286,008
Total current liabilities 20,264,660 15,579,265 4,511,884 2,037,542
Total equity and liabilities 51,342,773 43,533,573 12,904,443 9,984,217

Net Assets Value Per Share ( Rs.) 71.95 62.74 27.92 26.33
The notes to the financial statements on page 05 form an integral part of the financial statements.
The figures in brackets indicate deductions

It is certified that the interim financial statements have been prepared in compliance with the requirements of the
Companies Act No.7 of 2007.

sgd
General 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 by

sgd sgd
Director Director

November 01, 2022

 Lanka Walltiles PLC
Provisional Financial Statements
For the Six months ended 30th September 2022

Statement of Comprehensive Income

GROUP COMPANY
Quarter Six Month Quarter Six Month
Period ended 30.09.2022 30.09.2021 30.09.2022 30.09.2021 Variance 30.09.2022 30.09.2021 30.09.2022 30.09.2021 Variance
Rs.'000 Rs.'000 Rs.'000 Rs.'000 % Rs.'000 Rs.'000 Rs.'000 Rs.'000 %

Revenue 13,395,618 9,538,761 24,877,644 16,754,335 48.5 2,625,311 1,813,033 4,421,129 3,202,137 38.1
Cost of sales (8,480,868) (6,294,695) (15,448,582) (11,236,645) (37.5) (1,631,623) (1,083,341) (2,715,734) (1,946,618) (39.5)
Gross profit 4,914,750 3,244,066 9,429,061 5,517,690 70.9 993,688 729,692 1,705,395 1,255,519 35.8
Other income 112,996 43,542 574,058 94,364 508.3 (11,960) 6,681 558,492 492,809 13.3
Distribution cost (1,165,787) (820,970) (2,136,423) (1,437,419) (48.6) (313,952) (231,001) (541,709) (412,329) (31.4)
Administrative expenses (505,698) (401,311) (1,023,702) (769,343) (33.1) (91,237) (70,868) (175,037) (128,486) (36.2)
Finance income 162,172 30,371 304,741 58,737 418.8 2,549 1,200 5,672 1,477 284.1
Finance cost (921,768) (152,323) (1,917,852) (287,246) (567.7) (85,279) (21,088) (109,270) (26,548) (311.6)
Share of net profit of associate 1,254 (80) 2,109 105 - - - - -
Profit/(Loss) before tax 2,597,918 1,943,295 5,231,992 3,176,888 64.7 493,810 414,616 1,443,544 1,182,442 22.1
Income tax expense (475,103) (412,204) (1,072,860) (730,988) (46.8) (91,827) (81,878) (218,186) (190,990) (14.2)
Profit/(Loss) for the period 2,122,815 1,531,091 4,159,132 2,445,900 70.0 401,983 332,738 1,225,358 991,452 23.6

Other comprehensive income/(loss)

Actuarial Gain/ (Loss) on retirement benefit liability - - - - - - - - - -
Deferred tax release on components of other comprehensive income - - - - - - - - - -
Foreign currency translation differences of foreign operations (477) (104) 5,871 368 - - - - - -
Total comprehensive income/(loss) for the period 2,122,339 1,530,987 4,165,003 2,446,268 70.3 401,983 332,738 1,225,358 991,452 23.6

Profit/(Loss) attributable to:

Equity holders of Lanka Walltiles PLC 1,628,392 1,124,752 3,285,701 1,807,785 81.8 1,225,358 332,738 1,225,358 991,452 23.6
Non controlling interest 494,424 406,339 873,431 638,115 36.9 - - - - -
Profit/(Loss) for the period 2,122,815 1,531,091 4,159,132 2,445,900 70.0 1,225,358 332,738 1,225,358 991,452 23.6

Total comprehensive income/(loss) attributable to:

Equity holders of Lanka Walltiles PLC 1,628,226 1,124,716 3,287,744 1,807,913 81.9 1,225,358 332,738 1,225,358 991,452 23.6
Non controlling interest 494,113 406,271 877,259 638,355 37.4 - - - - -
Total comprehensive income/(loss) for the period 2,122,339 1,530,987 4,165,003 2,446,268 70.3 1,225,358 332,738 1,225,358 991,452 23.6

Earnings Per Share - Basic (Rs.) 5.96 4.12 12.04 6.62 4.49 1.22 4.49 3.63

Segmental Information
GROUP COMPANY
Period ended 30.09.2022 30.09.2021 Variance 30.09.2022 30.09.2021 Variance
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %
Revenue
Tiles & associated items 14,051,270 10,127,953 38.7 4,421,129 3,202,137 38.1
Plantation products 1,946,221 1,260,574 54.4 - - -
Packing materials 5,794,475 3,113,285 86.1 - - -
Aluminium products 3,439,508 2,498,506 37.7 - - -
Inter segment sales (353,830) (245,983) (43.8) - - -
Consolidated revenue 24,877,644 16,754,335 48.5 4,421,129 3,202,137 38.1

Profit/(Loss) before tax

Tiles & associated items 4,299,869 2,716,581 58.3 1,443,544 1,182,442 22.1
Plantation products 396,236 14,779 2581.1 - - -
Packing materials 971,264 241,238 302.6 - - -
Aluminium products (435,377) 204,290 (313.1) - - -
Consolidated profit/(loss) before tax 5,231,992 3,176,888 64.7 1,443,544 1,182,442 22.1

The notes to the financial statements on page 05 form an integral part of the financial statements.
The figures in brackets indicate deductions

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 Lanka Walltiles PLC
Provisional Financial Statements
For the Six months ended 30th September 2022

Statement of Changes in Equity

Attributable to equity holders of the parent
Stated Reserves Retained Total Non controlling Total
capital profit Interest Equity

Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

GROUP
Balance as at 31st March 2021 787,765 3,541,400 10,242,050 14,571,215 4,823,606 19,394,821
Charge relating to Surcharge Tax (Note 8) (690,156) (690,156) (191,926) (882,082)
Adjusted Balance as at 1st April 2021 787,765 3,541,400 9,551,894 13,881,059 4,631,680 18,512,739
Profit/(Loss) for the period - - 1,807,785 1,807,785 638,115 2,445,900
Other comprehensive income /(loss) - - 128 128 240 368
Dividend paid - - (846,300) (846,300) - (846,300)
Dividend to non controlling interest - - 48,804 48,804 (301,624) (252,820)
Adjusted Balance as at 30th September 2021 787,765 3,541,400 10,562,311 14,891,476 4,968,411 19,859,887
Adjusted Balance as at 1st April 2022 787,765 3,536,480 12,802,729 17,126,974 5,441,659 22,568,634
Profit/(Loss) for the period - - 3,285,701 3,285,701 873,431 4,159,132
Other comprehensive income /(loss) - - 2,043 2,043 3,828 5,871
Dividend paid - - (791,700) (791,700) - (791,700)
Dividend to non controlling interest - - 18,715 18,715 (229,049) (210,335)
Balance as at 30th September 2022 787,765 3,536,480 15,317,488 19,641,733 6,089,869 25,731,602

COMPANY
Balance as at 31st March 2021 787,765 2,057,891 3,645,057 6,490,713 - 6,490,713
Charge relating to Surcharge Tax (Note 8) (278,160) (278,160) (278,160)
Adjusted Balance as at 1st April 2021 787,765 2,057,891 3,366,897 6,212,553 - 6,212,553
Profit/(Loss) for the period - - 991,452 991,452 - 991,452
Other comprehensive income - - - - - -
Dividend paid - - (846,300) (846,300) - (846,300)
Adjusted Balance as at 30th September 2021 787,765 2,057,891 3,512,049 6,357,705 - 6,357,705
Adjusted Balance as at 1st April 2022 787,765 2,057,891 4,342,355 7,188,011 - 7,188,011
Profit/(Loss) for the period - - 1,225,358 1,225,358 - 1,225,358
Other comprehensive income - - - - - -
Dividend paid - - (791,700) (791,700) - (791,700)
Balance as at 30th September 2022 787,765 2,057,891 4,776,013 7,621,670 - 7,621,670

The notes to the financial statements on page 05 form an integral part of the financial statements.
The figures in brackets indicate deductions

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 Lanka Walltiles PLC
Provisional Financial Statements
For the Six months ended 30th September 2022

Cash Flow Statement

GROUP COMPANY
Period ended 30.09.2022 30.09.2021 30.09.2022 30.09.2021
Rs.'000 Rs.'000 Rs.'000 Rs.'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(Loss) before income tax 5,231,992 3,176,888 1,443,544 1,182,442

Adjustments for;
Depreciation and amortisation 564,937 534,330 114,192 93,513
Amortisation of right of use lease assets 49,917 33,510 12,769 10,323
Income from investments - - (525,583) (478,346)
Change in fair value of biological assets (9,446) 6,226 - -
Profit/(loss) on sale of property, plant & equipment (111) - - -
Interest income (304,741) (58,737) - -
Finance costs 1,917,852 287,246 109,270 11,426
Provision for retirement benefit obligations 106,979 92,808 13,303 13,276
Capital expenditure written off 14,685 12,823 - -
Allowance for obsolete and slow moving inventories 12,908 10,192 - -
Allowance for impairment of trade receivable 16,863 7,889 - 2,400
Deferred income/ capital grants amortisation (3,835) (3,783) - -
Foreign exchange (gain)/ loss 624,656 26,976 (20,671) 15,122
Share of net profit of associate (2,109) (105) - -
Operating profit before working capital changes 8,220,547 4,126,263 1,146,825 850,156
(Increase)/ decrease in inventories (7,705,745) (1,532,213) (1,605,244) 106,968
(Increase)/ decrease in trade and other receivables (2,347,865) (734,045) (1,176,219) 82,912
(Increase)/ decrease in dues from related parties 3,069 26,657 (144,380) (77,818)
Increase in dues to related parties (31,998) 15,145 566,728 (48,185)
Increase/ (decrease) in trade and other payables (382,141) 631,887 992,152 68,316
Cash generated/ (used in) from operations (2,244,133) 2,533,694 (220,138) 982,349
Interest received 304,741 58,737 - -
Finance costs paid (1,917,852) (287,246) (109,270) (11,426)
Retirement benefit costs paid (87,544) (45,077) (1,022) (285)
Income tax paid (2,115,421) (760,124) (707,315) (247,211)
Net cash from/ (used in) operating activities (6,060,210) 1,499,984 (1,037,745) 723,427
CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES
Acquisition of property, plant & equipment (1,091,051) (1,304,158) (607,067) (395,505)
Acquisition of plantation assets (106,504) (1,885) - -
proceeds from sale of property, plant & equipment 187 (83,307) - -
Income from investments - - 525,583 478,346
Net cash flows from / (used in) investing activities (1,197,367) (1,389,350) (81,485) 82,841
CASH FLOWS FROM FINANCING ACTIVITIES
Interest bearing borrowings obtained 11,891,126 8,239,995 1,076,194 400,000
Repayment of interest bearing borrowings (7,700,741) (6,487,490) (109,926) (136,962)
Repayment of lease liability (64,065) (39,352) (9,760) (10,174)
Dividend paid - on ordinary shares (791,700) (846,300) (791,700) (846,300)
Dividend paid to non controlling interest (210,335) (252,820) - -
Capital grants received 821 - - -
Net cash flows from/(used in) financing activities 3,125,106 614,033 164,809 (593,436)
Net increase / (decrease) in cash and cash equivalents (4,132,471) 724,667 (954,421) 212,832

MOVEMENT IN CASH & CASH EQUIVALENTS

Foreign currency translation differences of foreign operations 5,871 368 - -
Cash and cash equivalents at the beginning of the period 5,604,209 2,270,477 794,291 223,510
Cash and cash equivalents at the end of the period 1,477,609 2,995,512 (160,130) 436,342

The notes to the financial statements on page 05 form an integral part of the financial statements.
The figures in brackets indicate deductions

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Notes

1.) Corporate Information

Lanka Walltiles PLC ("the Company") is a public limited liability company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The
registered office of the company is located at No.215, Nawala Road,Narahenpita, Colombo 05.
The Consolidated Financial Statements of the company for the period ended 30th September 2022 comprise Lanka Walltiles PLC (Parent Company) and its subsidiaries
(together referred as the " Group"), namely Lanka Tiles PLC, Vallibel Plantation Management Limited, Horana Plantations PLC, Uni-Dil Packaging Ltd, Uni-Dil Packaging
Solutions Ltd, Swisstek (Ceylon) PLC, Swisstek Aluminium Ltd, LWL Development (Pvt) Ltd,Beyond Paradise Collection Ltd,Lankatiles (Pvt) Ltd,LTL Development
Ltd,Swisstek Development Ltd and LW Plantation Investment Ltd.

2.) The above figures are provisional & subject to audit.

3.) The number of shares in issue of the company as at 30th September 2022 was 273,000,000

4.) The same accounting policies as in the annual report for the year ended 31 March 2022 have been followed in the preparation of financial statements and are in
compliance with LKAS 34 - Interim Financial Reporting.
The presentation and classification of the financial statements of the previous period have been amended, with those of the current period. where relevant, for better
presentation and to be comparable.
5.) During the 6 month period, Group incurred Rs.197.08 Mn (Company Rs.33.94Mn.) for the services rendered in improving the manufacturing processes. This service has
been provided by related company, Royal Ceramics Lanka PLC & Vallibel One PLC.

6.) There have been no changes in contingent assets and contingent liabilities since 31st March 2022.
7.) There have been no material events occurring after the Balance Sheet date that require adjustments or disclosure to these financial statements.

8.) Surcharge Tax Act No. 14 of 2022 was enacted on 8 April 2022 and is applicable to the Lanka Walltiles Group as the collective taxable income of companies belonging
to the Group, calculated in accordance with the provisions of the Inland Revenue Act No. 24 of 2017, exceeds Rs. 2,000 Mn, for the year of assessment 2020/2021. The
liability is computed at the rate of 25 per cent on the taxable income. Total Surcharge Tax liability of Rs.882.08 Mn has been recognised for the Group(company-
Rs.278.Mn) as an opening adjustment to the 1 April 2021 retained earnings in the statement of Changes in Equity as per the Statement of Alternative Treatment
(SoAT) issued by The Institute of Chartered Accountants of Sri Lanka. According to the said Act, the surcharge tax shall be deemed to be an expenditure in the
financial statements relating to the year of assessment which commenced on 1 April 2020. On 20 April 2022, the Group paid Rs.441.01(Company-Rs.139.08) on account
of the first installment of the Surcharge Tax liability. The final installment of Surcharge Tax payable reported under income tax liability as of 30 June 2022 has been
paid on 20 July 2022.

9.) Market prices recorded during the quarter ended

30th September 2022/23 2021/22
Rs.cts Rs.cts
Highest market price per share 86.50-(30-09-2022) 81.50-(02-09-2021)
Lowest market price per share 42.00-(01-08-2022) 59.40-(01-07-2021)
Last traded price per share 83.90-(30-09-2022) 74.70-(30-09-2021)

10.) Directors Holding in Shares as at 30th September 2022

Shareholder No. of shares %
Mr. J.A.P.M. Jayasekara 995 0.000
Mr. M W R N Somaratne 10,000 0.036
Sampath Bank PLC/Mr.M.W.R.N Somarathne 60,000 0.219

11.) 25 Major shareholders as at 30th September 2022

Shareholder No. of shares %
1. Royal Ceramics Lanka PLC 148,921,090 54.550
2. Mr.A.A. Page 19,636,260 7.193
3. Arunodhaya Investments (Pvt) Ltd 6,313,345 2.313
4. Arunodhaya (Pvt) Ltd 6,313,345 2.313
5. Arunodhaya Industries (Pvt) Ltd 6,313,345 2.313
6. Seylan Bank PLC/Capital Trust Holdings Limited 4,232,205 1.550
7. Mrs. A Selliah 3,733,895 1.368
8. Sri Lanka Insurance Corporation Ltd - Life Fund 3,709,555 1.359
9. Mrs. A Kailasapillai 3,486,670 1.277
10. Capital Trust Holdings Ltd 3,475,693 1.273
11. Mr. K.A.S.R.Nissanka 2,550,000 0.934
12. Andysel (Pvt) Ltd 2,100,000 0.769
13. Amana Bank PLC /Mr. Mohamed Nayaz deen 1,820,956 0.667
14. Employee Trust Fund Board 1,795,176 0.658
15. Mr.K.Aravinthan 1,680,000 0.615
16. Mellon Bank N A-Acadian Frontier Markets Equity Fund 1,647,344 0.603
17. Sampath Bank PLC /Mr. S M Dissanayake 1,188,225 0.435
18. Mrs.Vasudevan 1,000,449 0.366
19. Mrs.V.Saraswathi & Mrs.Vasudevan 1,000,000 0.366
20. Seylan Bank PLC / Mohamed Nayaz deen 957,182 0.351
21. MIS M.A. Rasheda Nasreen 913,827 0.335
22. Ames Tile & Stone Ltd 887,250 0.325
23. Hatton National Bank PLC / Arunasalam Sithampalam 851,875 0.312
24. Sri Lanka Insurance Corporation Ltd- General Fund 835,240 0.306
25. Assetline Leasing Co.Ltd/ British American Technologies (Pvt) Ltd 625,000 0.229
Sub Total 225,987,927 82.779
Other Shareholders 47,012,073 17.221
Grand Total 273,000,000 100.000

12.) Percentage of public holding as at 30th September 2022 was 29.118 % comprising of 14,523 shareholders.
13.) The float adjusted market capitalization as at 30th September 2022 was Rs. 6,669,381,736.50 under option 3 of rule 7.14.1 (i) (a) of the Listing Rules and the company
has complied with the minimum public holding requirement applicable under the said option.

Page-05
CORPORATE INFORMATION

NAME OF THE COMPANY FACTORY

Lanka Walltiles PLC Meepe, Padukka
Telephone : + 94 - 11 - 4309809
Facsimile : + 94 - 11 - 2859168
LEGAL FORM E-mail : meepe_fac@lankatiles.com

Lanka Walltiles PLC is a public limited liability company which was PARENT COMPANY
incorporated under the Companies Ordinance No.51 of 1938 as a Royal Ceramics Lanka PLC No.
public company on 24th day of September 1975. 20,R A De Mel Mawatha
Pursuant to the requirements of the new Companies Act No. 7of 2007, Colombo 03
the Company was re-registered on 24th July 2007 and bears Telephone : + 94 - 11 - 4799400
registration number PQ 55. Facsimile : + 94 - 11 - 4720077
Website : www.rocell.com

DIRECTORS SECRETARIES
Mr. A M Weerasinghe (Chairman) P W Corporate Secretarial (Pvt) LtdNo.
Mr. J A P M Jayasekera (Managing Director) 3/17, Kynsey Road
Mr. Dhammika Perera (Resigned w.e.f.10th June 2022) Colombo 08
Dr. S Selliah Telephone : + 94 - 11 - 4640360-3
Mr. T G Thoradeniya Facsimile : + 94 - 11 - 4740588E-
Mr. K D G Gunaratne mail : pwcs@pwcs.lk
Ms. A M L Page
Mr. M W R N Somaratne BANKERS
Mr. J D N Kekulawala Commercial Bank of Ceylon PLC
Mr. S M Liyanage Hatton National Bank PLC
Mr. S R Jayaweera Bank of Ceylon
HSBC Bank
Ms.K.A.D.B.Perera (Appointed w.e.f. 19th October 2022)
People's Bank
REGISTERED OFFICE DFCC Bank PLC
Sampath Bank PLC
215, Nawala Road, Narahenpita, Colombo 05
Seylan Bank PLC
Telephone : + 94 -11 - 4526700
Facsimile : + 94 -11 - 2805463
AUDITORS
E-mail : info@lankatiles.com
Website : www.lankatiles.com EY
Chartered Accountants
201, De Saram Place
Colombo 10

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