Ceylon Beverage Holdings PLC
Interim Condensed Financial Statements for the Year ended
31 st March 2024
CEYLON BEVERAGE HOLDINGS PLC
Review
The economic pressures continued during the quarter under review, with excise taxes increasing by 14% in January 24, which was on top of a 20% duty hike in July 2023 for the 23/24 financial year. VAT was also higher by 3% vs prior year quarter. The escalation in price of alcoholic beverages has brought further pressure to consumers who have seen a rapid deterioration of their disposable income which has led to the widespread availability of illicit products. Consequently, LION volumes declined for the full year.
The Government and regulator must take this into consideration and provide price stability for the industry to recover, if this level of excise increases continue, Government revenue will be impacted due to lower volumes. In order to support consumer affordability, the launch of the 500ml returnable bottles from Lion Strong and Carlsberg Special Brew at lower price threshold was an attempt to minimize consumers downtrading to illicit product.
Cost saving initiatives were a central focus to offset the adverse impacts of tax hikes on the Group's profitability. However, there is a limit to cost reduction before quality and other critical elements are impacted. The outlook for 24/25 is in keeping with 23/24 - volume and margin pressure. In addition to an excise duty hike in January 2025, we expect there to be a margin headwind in the event of a Rupee depreciation in the second half of the financial year. Furthermore, national elections in the second half of the year will also increase uncertainty. Total taxes paid to the Government during the fiscal year amounted to Rs. 75.1 Bn.
CEYLON BEVERAGE HOLDINGS PLC
BOARD OF DIRECTORS AS AT 31ST MARCH 2024
Mr. D. A. Cabraal (Chairman)
Mr. H. Selvanathan (Deputy Chairman)
Mr. M. Selvanathan
Mr. R. H. Meewakkala (CEO/Director)
Mr. D. C. R. Gunawardena
Mr. S. Clini
Mrs. S. J. F. Evans
CEYLON BEVERAGE HOLDINGS PLC
CONDENSED STATEMENT OF FINANCIAL POSITION
Company | Group | |||
As at | 31st March 2024 | 31st March 2023 | 31st March 2024 | 31st March 2023 |
In Rs.'000s | (Audited) | (Audited) | ||
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | - | - | 28,316,768 | 22,996,451 |
Investment properties | 815,200 | 810,200 | 815,200 | 810,200 |
Right of use assets | - | - | 223,969 | 209,947 |
Intangible assets | - | - | 768,925 | 458,843 |
Deferred tax assets | - | - | 46,716 | 26,378 |
Investment in subsidiaries | 2,128,583 | 2,060,084 | - | - |
Total non-current assets | 2,943,783 | 2,870,284 | 30,171,578 | 24,501,819 |
Current assets | ||||
Inventories | - | - | 9,123,121 | 7,451,345 |
Trade and other receivables | 31,147 | 7,614 | 6,022,460 | 5,530,902 |
Amounts due from related companies | 121,669 | 175,000 | - | - |
Current tax assets | - | - | - | 639 |
Cash and cash equivalents | 42,877 | 20,368 | 12,571,174 | 11,348,046 |
Total current assets | 195,693 | 202,982 | 27,716,755 | 24,330,932 |
Total assets | 3,139,476 | 3,073,266 | 57,888,333 | 48,832,751 |
EQUITY AND LIABILITIES | ||||
Equity | ||||
Stated capital | 533,384 | 533,384 | 533,384 | 533,384 |
Capital reserves | 19,924 | 19,924 | 1,854,263 | 1,103,358 |
Revenue reserves | 1,742,907 | 1,352,682 | 12,591,143 | 10,345,024 |
Translation reserve | - | - | (3,660) | - |
Equity attributable to equity holders of the Company | 2,296,215 | 1,905,990 | 14,975,130 | 11,981,766 |
Non controlling interest | - | - | 13,509,901 | 11,090,491 |
Total equity | 2,296,215 | 1,905,990 | 28,485,031 | 23,072,257 |
Non-current liabilities | ||||
Loans and borrowings | - | - | 1,373,569 | 1,924,442 |
Lease liabilities (Note 5) | - | - | 233,800 | 216,501 |
Employee benefits | - | - | 293,935 | 257,730 |
Deferred tax liabilities | 145,182 | 143,682 | 7,044,076 | 5,687,986 |
Total non- current liabilities | 145,182 | 143,682 | 8,945,380 | 8,086,659 |
Current liabilities | ||||
Trade and other payables | 36,383 | 27,968 | 4,567,905 | 4,829,899 |
Amounts due to related companies | 438,811 | 372,791 | 123,606 | 76,041 |
Refundable deposits | - | - | 2,996,694 | 2,742,490 |
Current tax liabilities | 30,930 | 75,051 | 6,918,504 | 2,855,295 |
Loans and borrowings | - | 400,000 | 3,219,699 | 5,080,158 |
Lease liabilities (Note 5) | - | - | 44,166 | 45,054 |
Bank overdraft | 191,955 | 147,784 | 2,587,348 | 2,044,898 |
Total current liabilities | 698,079 | 1,023,594 | 20,457,922 | 17,673,835 |
Total liabilities | 843,261 | 1,167,276 | 29,403,302 | 25,760,494 |
Total equity and liabilities | 3,139,476 | 3,073,266 | 57,888,333 | 48,832,751 |
Net assets per ordinary share (Rs.) | 109.41 | 90.81 | 713.51 | 570.89 |
The above figures are provisional and subject to audit.
These financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
(Sgd.)
J.N. Goonaratne Chief Financial Officer
The Board of Directors are 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 | M.Selvanathan | R.H. Meewakkala |
Director | Director | Director |
Carsons Management Services (Private) Ltd. | ||
15th May 2024 |
CEYLON BEVERAGE HOLDINGS PLC
CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY
Quarter Ended | Year Ended | |||||
As at | 31-Mar-24 | 31-Mar-23 | Change % | 31-Mar-24 | 31-Mar-23 | Change % |
In Rs.'000s | (Audited) | |||||
Revenue | 47,531 | 47,357 | 0 | 2,291,762 | 1,491,410 | 54 |
Cost of sales | - | - | - | - | - | - |
Gross profit | 47,531 | 47,357 | 0 | 2,291,762 | 1,491,410 | 54 |
Net gains arising from changes in fair value of investment properties | 5,000 | 163,100 | - | 5,000 | 163,100 | - |
52,531 | 210,457 | (75) | 2,296,762 | 1,654,510 | 39 | |
Administrative expenses | (7,101) | (17,577) | (60) | (34,637) | (34,363) | 1 |
Reversal/(provision) of impairment for intercompany receivable | - | (44,403) | - | 44,403 | (44,403) | - |
Provision of impairment for investments in subsidiaries | (22,047) | (175,000) | - | (66,450) | (175,000) | - |
Profit Before Finance Cost | 23,383 | (26,523) | (188) | 2,240,078 | 1,400,744 | 60 |
Finance income | 3,695 | 12,599 | (71) | 33,173 | 39,833 | (17) |
Finance costs | (19,487) | (29,087) | (33) | (115,050) | (97,124) | 18 |
Net finance costs | (15,792) | (16,488) | (4) | (81,877) | (57,291) | 43 |
Profit before taxation | 7,591 | (43,011) | (118) | 2,158,201 | 1,343,453 | 61 |
Income tax expenses | (13,702) | (8,782) | 56 | (61,553) | (228,781) | (73) |
Deferred taxation | (1,500) | (48,930) | - | (1,500) | (112,098) | - |
Profit after taxation | (7,611) | (100,723) | (92) | 2,095,148 | 1,002,574 | 109 |
Earnings per ordinary share (Rs.) | (0.36) | (4.80) | 99.83 | 47.77 |
The above figures are provisional and subject to audit.
Figures in brackets indicate deductions.
CEYLON BEVERAGE HOLDINGS PLC
CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - GROUP
Quarter Ended | Year Ended | |||||
As at | 31-Mar-24 | 31-Mar-23 | Change % | 31-Mar-24 | 31-Mar-23 | Change % |
In Rs.'000s | (Audited) | |||||
Revenue | 31,353,304 | 25,244,610 | 24 | 111,930,270 | 96,938,522 | 15 |
Cost of sales | (23,695,937) | (19,210,882) | 23 | (84,863,456) | (73,755,671) | 15 |
Gross profit | 7,657,367 | 6,033,728 | 27 | 27,066,814 | 23,182,851 | 17 |
Net gains arising from changes in fair value of investment properties | 5,000 | 163,100 | - | 5,000 | 163,100 | - |
Other income | 110,248 | 76,956 | 43 | 530,383 | 304,414 | 74 |
7,772,615 | 6,273,784 | 24 | 27,602,197 | 23,650,365 | 17 | |
Distribution expenses | (2,353,988) | (1,887,549) | 25 | (7,513,637) | (6,017,299) | 25 |
Administrative expenses | (1,298,026) | (987,761) | 31 | (4,159,701) | (3,099,889) | 34 |
Other expenses | (248,195) | (18,166) | 1,266 | (562,631) | (717,869) | (22) |
Reversal/(provision) of impairment for intangible assets | - | - | - | 291,063 | (350,485) | - |
Profit before finance cost | 3,872,406 | 3,380,308 | 15 | 15,657,291 | 13,464,823 | 16 |
Finance income | 237,319 | 397,597 | (40) | 1,152,128 | 1,411,521 | |
Finance costs | (804,729) | (1,576,684) | (49) | (2,786,126) | (3,615,441) | (23) |
Net finance income/(costs) | (567,410) | (1,179,087) | (52) | (1,633,998) | (2,203,920) | (26) |
Profit before taxation | 3,304,996 | 2,201,221 | 50 | 14,023,293 | 11,260,903 | 25 |
Income tax expenses | (1,444,695) | (537,652) | 169 | (5,654,421) | (4,091,422) | 38 |
Deferred taxation | 52,233 | (482,841) | (111) | (393,263) | (423,377) | (7) |
Profit after taxation | 1,912,534 | 1,180,728 | 62 | 7,975,609 | 6,746,104 | 18 |
Other comprehensive income | ||||||
Items that will never be reclassified to profit or loss | - | - | - | |||
Re-measurement of employee benefit obligation | (38,146) | (50,899) | (25) | (38,146) | (50,899) | (25) |
Deferred tax adjustment on employee benefit obliga on | 15,258 | 20,360 | (25) | 15,258 | 20,360 | (25) |
Change in revaluation of property plant and equipment | 2,395,232 | - | - | 2,395,232 | - | - |
Deferred tax adjustment on revaluation of lands & buildings | (958,093) | - | - | (958,093) | - | - |
Items that are or may be reclassified subsequently to profit or loss | ||||||
Foreign currency translation gain/(loss) from foreign operation | (7,327) | - | - | (7,005) | - | - |
Total other comprehensive income for the period net of tax | 1,406,924 | (30,539) | (4,707) | 1,407,246 | (30,539) | - |
Total comprehensive income for the period | 3,319,458 | 1,150,189 | 189 | 9,382,855 | 6,715,565 | 40 |
Profit attributable to | ||||||
- Equity holders of the company | 993,726 | 659,748 | 51 | 3,962,948 | 3,407,614 | 16 |
- Non - controlling interest | 918,808 | 520,980 | 76 | 4,012,661 | 3,338,490 | 20 |
Profit available for appropriation | 1,912,534 | 1,180,728 | 62 | 7,975,609 | 6,746,104 | 18 |
Total comprehensive income attributable to | ||||||
- Equity holders of the company | 1,728,844 | 643,791 | 169 | 4,698,234 | 3,391,657 | 39 |
- Non - controlling interest | 1,590,614 | 506,398 | 214 | 4,684,621 | 3,323,908 | 41 |
Profit available for appropriation | 3,319,458 | 1,150,189 | 189 | 9,382,855 | 6,715,565 | 40 |
Earnings per ordinary share (Rs.) | 47.35 | 31.43 | 188.82 | 162.36 |
The above figures are provisional and subject to audit.
Figures in brackets indicate deductions.
CEYLON BEVERAGE HOLDINGS PLC
CONDENSED STATEMENTS OF CHANGES IN EQUITY | |||||||
In Rs.'000s | Attributable to equity holders of the parent | Non- | Total equity | ||||
Stated capital Revaluation | General capital | Revenue reserves | Revenue reserves | Translation | Total | controlling | |
reserve | reserve | fair value | retained earnings | Reserve | interests |
COMPANY | |||
Balance as at 1st April 2022 | 533,384 | - | 19,924 |
Total comprehensive income for the period | |||
Profit for the period | - | - | - |
Total comprehensive income for the period | - | - | - |
Transactions with owners, recorded directly in equity | |||
contribution by and distribution to owners | |||
Forfeiture of unclaimed Dividend Paid | - | - | - |
Dividend Paid | - | - | - |
Balance as at 31st March 2023 | 533,384 | - | 19,924 |
Balance as at 1st April 2023 | 533,384 | - | 19,924 |
Total comprehensive income for the period | |||
Profit for the period | - | - | - |
Total comprehensive income for the period | - | - | - |
Transactions with owners, recorded directly in equity | |||
contribution by and distribution to owners | |||
Forfeiture of unclaimed Dividend Paid | - | - | - |
Dividend Paid | - | - | - |
Balance as at 31st March 2024 | 533,384 | - | 19,924 |
GROUP | |||
Balance as at 1st April 2022 | 533,384 | 1,083,434 | 19,924 |
Total comprehensive income for the period | |||
Profit for the period | - | - | - |
Other comprehensive loss for the period | - | - | - |
Total comprehensive income for the period | - | - | - |
Transactions with owners, recorded directly in equity | |||
contribution by and distribution to owners | |||
Forfeiture of unclaimed Dividend Paid | - | - | - |
Dividend Paid | - | - | - |
Balance as at 31st March 2023 | 533,384 | 1,083,434 | 19,924 |
Balance as at 1st April 2023 | 533,384 | 1,083,434 | 19,924 |
Total comprehensive income for the period | |||
Profit for the period | - | - | - |
Other comprehensive profit/ (loss) for the period | - | 750,905 | - |
Transfers | - | - | - |
Total comprehensive income/ (expense) for the period | - | 750,905 | - |
Transactions with owners, recorded directly in equity | |||
contribution by and distribution to owners | |||
Forfeiture of unclaimed Dividend Paid | - | - | - |
Dividend Paid | - | - | - |
Balance as at 31st March 2024 | 533,384 | 1,834,339 | 19,924 |
The above figures are provisional and subject to audit.
Figures in brackets indicate deductions.
601,227 | 855,584 | - | 2,010,119 | - | 2,010,119 |
51,002 | 951,572 | - | 1,002,574 | - | 1,002,574 |
51,002 | 951,572 | - | 1,002,574 | - | 1,002,574 |
- | 419 | - | 419 | - | 419 |
- | (1,107,122) | - | (1,107,122) | - | (1,107,122) |
652,229 | 700,453 | - | 1,905,990 | - | 1,905,990 |
652,229 | 700,453 | - | 1,905,990 | - | 1,905,990 |
3,500 | 2,091,648 | - | 2,095,148 | - | 2,095,148 |
3,500 | 2,091,648 | - | 2,095,148 | - | 2,095,148 |
- | 150 | - | 150 | - | 150 |
- | (1,705,073) | - | (1,705,073) | - | (1,705,073) |
655,729 | 1,087,178 | - | 2,296,215 | - | 2,296,215 |
601,227 | 7,458,843 | - | 9,696,812 | 8,945,053 | 18,641,865 |
51,002 | 3,356,612 | - | 3,407,614 | 3,338,490 | 6,746,104 |
- | (15,957) | - | (15,957) | (14,582) | (30,539) |
51,002 | 3,340,655 | - | 3,391,657 | 3,323,908 | 6,715,565 |
- | 419 | - | 419 | - | 419 |
- | (1,107,122) | - | (1,107,122) | (1,178,470) | (2,285,592) |
652,229 | 9,692,795 | - | 11,981,766 | 11,090,491 | 23,072,257 |
652,229 | 9,692,795 | - | 11,981,766 | 11,090,491 | 23,072,257 |
3,500 | 3,959,448 | - | 3,962,948 | 4,012,661 | 7,975,609 |
- | (11,959) | (7,005) | 731,941 | 675,305 | 1,407,246 |
- | - | 3,345 | 3,345 | (3,345) | - |
3,500 | 3,947,489 | (3,660) | 4,698,234 | 4,684,621 | 9,382,855 |
- | 203 | - | 203 | 49 | 252 |
- | (1,705,073) | - | (1,705,073) | (2,265,260) | (3,970,333) |
655,729 | 11,935,414 | (3,660) | 14,975,130 | 13,509,901 | 28,485,031 |
CEYLON BEVERAGE HOLDINGS PLC
CONDENSED STATEMENT OF CASH FLOWS
Company | Group | |||
For the period ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-24 | 31-Mar-23 |
In Rs.'000s | ||||
Cash flows from operating activities | ||||
Profit before taxation | 2,158,201 | 1,343,453 | 14,023,293 | 11,260,903 |
Adjustments for: | ||||
Finance costs (excluding exchange gain) | 115,050 | 97,124 | 2,603,295 | 3,606,900 |
Depreciation on right of use assets | - | - | 63,515 | 65,766 |
Gain on de-recognition of right of use assets | - | - | (14,330) | (1,841) |
Depreciation on property, plant and equipment | - | - | 2,359,678 | 1,796,690 |
Amortization of intangible assets | - | - | 13,463 | 12,101 |
Net inventory provision/(reversal) | - | - | (63,221) | 49,009 |
Provision for retirement benefit obligation | - | - | 71,786 | 41,659 |
Impairment of property, plant and equipment | - | - | 84,889 | 38,460 |
Provision/(Reversal) of impairment for intangible assets | - | - | (291,063) | 353,229 |
Provision/(Reversal) of Impairment provision for intercompany receivable | (44,403) | 44,403 | - | |
Impairment provision for investments in subsidiary | 66,450 | 175,000 | - | - |
Finance income | (33,173) | (39,833) | (1,152,128) | (1,411,521) |
Net gain arising from changes in fair value of investment properties | (5,000) | (163,100) | (5,000) | (163,100) |
Loss on disposal of property, plant and equipment | - | - | (168,417) | 36,372 |
Loss on disposal of intangible asset | - | 8,740 | 5,600 | |
Disposal gain on deposits liability write back | - | - | - | - |
Lease interest expense | - | - | 45,105 | 43,670 |
Unrealised foreign exchange gain | - | - | (7,694) | (459,624) |
Operating cash flow before working capital changes | 2,257,125 | 1,457,047 | 17,571,911 | 15,274,273 |
(Increase)/decrease in inventories | - | - | (1,608,555) | (2,963,243) |
(Increase)/decrease in trade and other receivables | (23,533) | (7,043) | (478,377) | (3,191,702) |
(Increase)/decrease in amounts due from related companies | (4,043) | (45,479) | - | - |
Increase/(decrease) in amounts due to related companies | (737) | (27,887) | 47,565 | (79,716) |
Increase/(decrease) in tax payable/receivable | 1,726 | 1,405 | 3,087,004 | (363,065) |
Increase/(decrease) in trade and other payables | (953) | 1,087 | (266,623) | 1,478,820 |
Cash (used in)/generated from operations | 2,229,585 | 1,379,130 | 18,352,925 | 10,155,367 |
Finance expenses paid | (48,293) | (34,187) | (2,772,962) | (3,462,910) |
Tax paid | (107,399) | (193,026) | (4,308,380) | (4,037,060) |
Surcharge tax paid | - | (35,754) | - | (1,230,756) |
Retirement benefits paid | - | - | (73,727) | (17,824) |
Net cash (used in)/generated from operating activities | 2,073,893 | 1,116,163 | 11,197,856 | 1,406,817 |
Cash flows from investing activities | ||||
Purchase and construction of property, plant and equipment | - | - | (5,398,282) | (4,295,928) |
Purchase of intangible assets | - | - | (41,222) | (7,814) |
Agent deposits received | - | - | 451,252 | 441,309 |
Interest received | - | - | 1,152,128 | 1,411,521 |
Investment in subsidiaries | - | (400,000) | - | - |
Net cash (used in)/generated from investing activities | - | (400,000) | (3,836,124) | (2,450,912) |
Cash flows from financing activities | ||||
Proceeds from loans and borrowings | - | 400,000 | 1,900,000 | 2,400,000 |
Repayment of loans and borrowings | (400,000) | - | (4,141,667) | (1,187,400) |
Repayment of lease rentals | - | - | (91,902) | (102,316) |
Forfeiture of unclaimed dividends | 150 | 419 | 252 | 419 |
Dividends paid net of tax | (1,695,705) | (1,100,766) | (4,326,807) | (2,278,002) |
Net cash (used in)/generated from financing activities | (2,095,555) | (700,347) | (6,660,124) | (1,167,299) |
Net increase/(decrease) in cash and cash equivalents | (21,662) | 15,816 | 701,608 | (2,211,394) |
Cash and cash equivalents at the beginning of the year | (127,416) | (143,232) | 9,303,148 | 11,137,550 |
Effect of movements in exchange rate on translation reserve | (7,005) | - | ||
Effect of exchange rate changes on cash and cash equivalents | - | - | (13,925) | 376,992 |
Cash and cash equivalents at the end of the period | (149,078) | (127,416) | 9,983,826 | 9,303,148 |
Analysis of cash and cash equivalents | ||||
Cash and cash equivalents | 42,877 | 20,368 | 12,571,174 | 11,348,046 |
Bank overdraft | (191,955) | (147,784) | (2,587,348) | (2,044,898) |
(149,078) | (127,416) | 9,983,826 | 9,303,148 |
The above figures are provisional and subject to audit.
Figures in brackets indicate deductions.
CEYLON BEVERAGE HOLDINGS PLC
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
-
CORPORATE INFORMATION
Ceylon Beverage Holdings PLC is a public limited liability Company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The parent company of Ceylon Beverage Holdings PLC is Carson Cumberbatch PLC "(CCPLC)" and the ultimate parent company is Bukit Darah PLC. The registered office of the Company is situated at No 61, Janadhipathi Mawatha, Colombo 01 and the principal place of business is situated at No 254, Colombo Road, Biyagama.
The interim condensed financial statements comprise of the Company and its subsidiaries (together referred to as the "Group" and individually Group entities). The Subsidiaries of the Company are set out below.
Subsidiary | Controlling interest |
Lion Brewery (Ceylon) PLC | 52.25% |
Lion Beer (Ceylon) Pte Ltd, Singapore | 52.25% |
Millers Brewery Limited | 52.25% |
Pubs 'N Places (Private) Limited | 99.9% |
Retail Spaces (Private) Limited | 100% |
Luxury Brands (Private) Limited | 100% |
"LBCPLC"
wholly owned Subsidiary of ''LBCPLC'' wholly owned Subsidiary of ''LBCPLC''
The principal activities of the Group is brewing and marketing of high quality beers for both local & export markets and retailing of beer & alcohol products locally through its owned/managed wine shops & pubs.The Group is also engaged in the import & marketing of globally renowned high quality beer and spirits brands.
- BASIS OF PREPARATION
-
Statement of Compliance
The interim condensed financial statements of the Company and Group have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34 (Interim Financial Reporting). These interim condensed financial statements should be read in conjunction with the last annual audited financial statements for the year ended 31st March 2023, as the same accounting policies have been applied consistently.
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. - Going Concern
Based on currently available information the management is satisfied that Company and its subsidiaries would continue its operations in the foreseeable future. - Basis of measurement
2.3.1 Interim condensed Financial Statements have been prepared on historical cost basis and applied consistently with no adjustments being made for inflationary factors affecting the financial statements, except for the following;
- Freehold Land and buildings are measured at cost at the time of acquisition and construction and subsequently at revalued amounts, which are the fair values at the date of revaluation less accumulated depreciation and impairment losses, if any.
- Employee benefits are measured at present value of the obligation.
- Investment properties are measured at fair value.
2.4 Functional Currency and Presentation Currency
All values presented in the Financial Statements are in Sri Lankan Rupees Thousands (Rs.'000s) which is the Group's functional currency, unless otherwise indicated.
CEYLON BEVERAGE HOLDINGS PLC
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
3 FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES
-
Financial Commitments Lion Brewery (Ceylon) PLC
Document credits established for foreign purchases of the Company as at 31st March 2024 amounts to Rs.1,308 Mn (2023 - Rs.1,657 Mn). - Capital Commitments Lion Brewery (Ceylon) PLC
Capital expenditure committed by the Company for which a provision has not been made in the Financial Statements amounts to Rs. 1,249 Mn as at 31st March 2024 (2023 - Rs.
700 Mn).
3.3 Contingencies
Following legal matters are outstanding against the Group and no provision has been made in the Financial Statements in this regard.
(i) Company
In 2008 the Customs Department instituted a prosecution in the Fort Magistrate's Court (MC) in Case No. S/65898/07/B against the Company and its Directors for the recovery of Rs. 48,121,634/29 comprising of Rs.23,062,080/43 being the amount of Excise (Special Provision) Duty (the 'duty') purportedly in arrears during the period 1998 to 2001 and Rs.25,059,553/86 as its penalty. The Company and the Directors filed a Writ an application in the Court of Appeal (CA) to quash the Certificate of Excise Duty in Default issued to the Company and obtained a Stay Order in respect of the proceedings of the Fort MC Case. A sum of Rs. 23,062,080/43 being the duty amount in dispute was paid to Sri Lanka Customs by the Company as required before submitting its appeal. No provision has been made for the payment of penalty amounting to Rs.25,059,553/86.
Subsequently the CA Application was dismissed and the Company appealed against the Order to the Supreme Court. The Supreme Court also ordered the staying of all further proceedings in the MC Case until final hearing and determination of the Appeal. Supreme Court Judgment was delivered in December 2022 where the Company's Appeal was upheld and Certificate of Excise Duty in default issued by the Director General of Customs and Excise Duty in the Magistrates' Court of Fort was quashed.
The Director General of Excise was directed to consider the representations made by the Company and make a determination under section 9(2) of the said Act, pursuant to an inquiry which was to be concluded within six months from the date of the judgment. Despite the lapse of six months, inquiry is still pending.
The Customs Department instituted a prosecution in the Magistrate's Court of Kaduwela in Case No. 11303/Customs against the company and its directors to recover Excise Duty amounting (ii) Lion Brewery (Ceylon) PLC
Contingent liabilities as at 31st March 2024 amounts to Rs. 781 Mn (2023 - Rs.78 Mn), being bank guarantees given to Government bodies and foreign suppliers for operational purposes. Apart from the above there were no other material contingent liabilities which would require adjustments to or disclosure in the Financial Statements.
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STATED CAPITAL
The Company's stated capital consists of 20,988,090 ordinary shares.
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Ceylon Beverage Holdings plc published this content on 17 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2024 03:17:05 UTC.