Lanka Aluminium Industries : Interim Financial Statements for the Quarter ended 31st March 2024

INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024

LANKA ALUMINIUM INDUSTRIES PLC (PQ 187)

Interim Condensed Financial Statements

LANKA ALUMINIUM INDUSTRIES PLC

STATEMENT OF COMPREHENSIVE INCOME - GROUP

	For the Quarter ended		For the year ended
		31st March			31st March
	Un-Audited	Un-Audited			Un-Audited	Audited
	2024	2023		%	2024	2023		%
	Rs'000	Rs'000		Change	Rs'000	Rs'000		Change
Revenue	628,087	532,920		18	2,496,168	2,631,464		(5)
Cost of Sales	(467,504)	(418,056)		12	(1,829,324)	(1,816,433)		1
Gross Profit	160,583	114,863		40	666,844	815,031		(18)
Other income	259	2,136		(88)	18,449	4,845		281
Net change in fair value through profit or loss financial assets	146	(104)		(240)	176	(518)		(134)
Administrative and general expenses	(44,841)	(41,460)		8	(167,647)	(171,003)		(2)
Marketing and distribution expenses	(44,324)	(35,018)		27	(163,072)	(154,107)		6
Profit from operations	71,824	40,417		78	354,751	494,248		(28)
Finance income	4,795	3,256		47	17,467	12,136		44
Finance costs	(8,662)	(37,593)		(77)	(36,573)	(168,095)		(78)
Net finance costs	(3,867)	(34,337)		(89)	(19,106)	(155,959)		(88)
Profit/(Loss) from operations after net finance expense	67,957	6,080		1,018	335,645	338,289		(1)
Income tax expense	(17,397)	5,161		(437)	(96,194)	(118,495)		(19)
Profit/(Loss) for the year	50,560	11,241		350	239,451	219,794		9
Profit/( loss) attributable to:
Equity holders of the company	44,901	3,130		1,335	213,963	197,019		9
Non-controlling Interests	5,658	8,112		(30)	25,487	22,775		12
Profit/(Loss) for the year	50,560	11,241		350	239,451	219,794		9
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of property,plant and equipment	286,142	-		-	286,142	-		-
Deferred tax on revalution surplus of land & buildings	(85,253)	-		-	(85,253)	-		-
Deferred tax liabilities due to income tax rate change	-	-		-	-	(93,497)		(100)
Actuarial gains / (losses) on retirement benefit obligations	(4,271)	12,840		(133)	(4,271)	12,840		(133)
Tax on other comprehensive income	1,281	(3,852)		(133)	1,281	(3,852)		(133)
Other comprehensive income for the year, net of tax	197,900	8,988		2,102	197,900	(84,509)		(334)
Total comprehensive income for the year,net of tax	248,460	20,229		1,128	437,351	135,285		223
Total comprehensive income attributable to:
Equity holders of the company	242,998	12,000		1,925	412,059	112,392		267
Non-controlling Interests	5,462	8,230		(34)	25,290	22,892		10
Total comprehensive income for the year	248,460	20,229		1,128	437,351	135,285		223
Earnings Per Share (Rs.)	0.66	0.05			3.12	2.88
Figures in brackets indicate deductions
All values are in Rupees '000, unless otherwise stated.

Interim Condensed Financial Statements

LANKA ALUMINIUM INDUSTRIES PLC

STATEMENT OF COMPREHENSIVE INCOME - COMPANY

	For the Quarter ended		For the year ended
		31st March			31st March
	Un-Audited	Un-Audited			Un-Audited	Audited
	2024	2023		%	2024	2023		%
	Rs'000	Rs'000		Change	Rs'000	Rs'000		Change
Revenue	582,778	486,294		20	2,313,054	2,423,563		(5)
Cost of Sales	(446,101)	(390,706)		14	(1,739,756)	(1,691,893)		3
Gross Profit	136,677	95,588		43	573,298	731,670		(22)
Other income	338	2,018		(83)	18,860	4,571		313
Net change in fair value through profit or loss financial assets	146	(104)		(240)	176	(518)		(134)
Administrative and general expenses	(41,410)	(39,514)		5	(156,362)	(167,468)		(7)
Marketing and distribution expenses	(41,281)	(34,254)		21	(156,225)	(150,353)		4
Profit from operations	54,470	23,734		130	279,747	417,902		(33)
Finance income	3,687	1,110		232	10,398	6,574		58
Finance costs	(7,636)	(34,803)		(78)	(30,049)	(143,891)		(79)
Net finance costs	(3,949)	(33,693)		(88)	(19,651)	(137,317)		(86)
Profit/(Loss) from operations after net finance expense	50,521	(9,959)		(607)	260,096	280,585		(7)
Income tax (expense)/reversal	(11,020)	4,752		(332)	(72,241)	(106,614)		(32)
Profit/(Loss) for the year	39,501	(5,207)		(859)	187,855	173,971		8
Profit/( loss) attributable to:
Equity holders of the company	39,501	(5,207)		(859)	187,855	173,971		8
Profit/(Loss) for the year	39,501	(5,207)		(859)	187,855	173,971		8
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of property,plant and equipment	268,421	-		-	268,421	-		-
Deferred tax on revalution surplus of land & buildings	(80,526)	-		-	(80,526)	-		-
Deferred tax liabilities due to income tax rate change	-	-		-	-	(87,497)		(100)
Actuarial gains / (losses) on retirement benefit obligations	(3,531)	12,340		(129)	(3,531)	12,340		(129)
Tax on other comprehensive income	1,059	(3,702)		(129)	1,059	(3,702)		(129)
Other comprehensive income for the year, net of tax	185,423	8,638		2,047	185,423	(78,859)		(335)
Total comprehensive income for the year, net of tax	224,923	3,431		6,456	373,277	95,112		292
Total comprehensive income attributable to:
Equity holders of the company	224,923	3,431		6,456	373,277	95,112		292
Total comprehensive income for the year	224,923	3,431		6,456	373,277	95,112		292
Earnings Per Share (Rs.)	0.58	(0.08)			2.74	2.54
Market Price Per Share
Highest	24.00	18.80			24.00	25.50
Lowest	15.70	14.20			13.30	9.30
Last traded price	23.50	16.10			23.50	16.10

Figures in brackets indicate deductions

All values are in Rupees '000, unless otherwise stated.

Interim Condensed Financial Statements

LANKA ALUMINIUM INDUSTRIES PLC

STATEMENT OF CHANGES IN EQUITY

GROUP		Attributable to Equity Holders of the Parent		Non-controlling	Total
	Stated	Revaluation	Fair Value	Retained	Total	Interest	Equity
	Capital	Reserves	Reserve	Earnings			Rs.'000
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 01st April, 2022	137,028	748,801	(4,930)	1,298,336	2,179,235	42,581	2,221,816
Profit/(Loss) for the year	-	-	-	197,019	197,019	22,775	219,793
Other Comprehensive Income
Origination of deferred tax liabilities due to income tax rate
change	-	(93,497)	-		(93,497)	-	(93,497)
Actuarial gains/(losses) on retirement benefit obligation (net
of tax)	-	-	-	8,870	8,870	118	8,988
Total comprehensive income for the year	-	(93,497)	-	205,889	112,392	22,892	135,284
Balance as at 31st March, 2023	137,028	655,304	(4,930)	1,504,225	2,291,627	65,473	2,357,100
Balance as at 01st April, 2023	137,028	655,304	(4,930)	1,504,225	2,291,627	65,473	2,357,100
Profit for the year	-	-	-	213,963	213,963	25,487	239,450
Other Comprehensive Income
Revaluation of property, plant and equipment		286,142			286,142		286,142
Deferred tax on revalution surplus of land & buildings	-	(85,253)	-	-	(85,253)	-	(85,253)
Actuarial gains/(losses) on retirement benefit obligation (net
of tax)				(2,793)	(2,793)	(197)	(2,990)
Total comprehensive income for the year	-	200,890	-	211,170	412,059	25,290	437,350
Dividend declared	-	-	-	-	-	-	-
Balance as at 31st March, 2024	137,028	856,194	(4,930)	1,715,390	2,703,681	90,765	2,794,446
COMPANY			Stated	Revaluation	Fair Value	Retained	Total
			Capital	Reserves	Reserve	Earnings	Equity
			Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as as at 01st April, 2022			137,028	647,087	(4,929)	1,236,287	2,015,473
Profit/(Loss) for the year			-	-	-	173,971	173,971
Other Comprehensive Income
Origination of deferred tax liabilities due to income tax rate
change			-	(87,497)	-	-	(87,497)
Actuarial gains/(losses) on retirement benefit obligation (net
of tax)			-	-	-	8,638	8,638
Total comprehensive income for the year			-	(87,497)	-	182,609	95,112
Balance as at 31st March, 2023			137,028	559,590	(4,929)	1,418,896	2,110,585
Balance as as at 01st April, 2023			137,028	559,590	(4,929)	1,418,896	2,110,585
Profit for the year			-	-	-	187,855	187,855
Other Comprehensive Income
Revaluation of property, plant and equipment			-	268,421	-	-	268,421
Deferred tax on revalution surplus of land & buildings			-	(80,526)	-	-	(80,526)
Actuarial gains/(losses) on retirement benefit obligation (net
of tax)			-	-	-	(2,472)	(2,472)
Total comprehensive income for the year			-	187,894	-	185,383	373,277
Balance as at 31st March, 2024			137,028	747,485	(4,929)	1,604,279	2,483,863

LANKA ALUMINIUM INDUSTRIES PLC
CASH FLOW STATEMENT
	Company
	Un-audited	Audited
For the year ended 31st March,	2024	2023
	Rs.000	Rs.000
CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax	260,096	280,585
Adjustment For :-
Depreciation on property, plant & equipment	96,042	101,343
Amortisation of intangible assets	441	253
Amortization of right-of-use assets	29,062	28,571
Net change in fair value through profit or loss financial assets	(175)	518
Realized loss/(gain) on equity shares	(252)	191
Provision for retirement benefit obligations	15,623	13,621
Impairment of property, plant and equipment	38	42
Impairment of inventories	691	13,206
Gain on disposal of property, plant & equipment and insurance claim	(15,683)	-
Dividend Income	(151)	8
Interest income	(10,398)	(6,574)
Interest expense	30,049	116,104
Operating profit before working capital changes	405,383	547,868
(Increase) / decrease in inventories	(66,267)	(181,734)
(Increase) / decrease in trade & other receivables	52,917	296,784
(Increase) / decrease in amount due from related parties	2,090	(17,017)
Increase / (decrease) in trade and other payables	52,297	(146,181)
Increase / (decrease) in amount due to related parties	1,689	6,978
Cash generated from / (used in) operations	448,109	506,698
Income tax paid	(65,874)	(83,690)
Interest expense paid	(22,740)	(109,703)
Retiring gratuity paid	(4,879)	(7,855)
Net cash generated from / (used in) operations	354,616	305,450
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(40,494)	(88,470)
Purchase intangible assets	(185)	-
Dividend income	95	(8)
Proceeds from Disposal of quoted investment in equity shares	1,894	2,002
Interest income received	10,398	5,180
Proceeds from disposal of property, plant & equipment/ Insurance claim	15,959	-
Investments made in short term deposit	369	(13,105)
Investments in quoted investment in equity shares	(505)	(5,450)

Group

Un-audited Audited

2024 2023

Rs.000 Rs.000

335,645 338,289

103,444 108,753

441 253

27,456 26,965

1. 518

1. 191

16,225 14,188

3842

4,607 15,656

(15,683) -

1. 8
   (17,467) (12,136)
   36,573 132,198
   490,701 624,925

(49,900) (232,557)

36,153 330,452

(2,170) (2,724)

69,982 (206,776)

--

544,766 513,320

(83,265) (96,456)

(29,669) (126,365)

(5,347) (7,970)

426,485 282,529

(40,651) (107,984)

1. -

95(8)

1,894 2,002

17,467 7,587

15,959-

(6,239) (16,353)

(505)

(5,450)

Net Cash used in investing activities

CASH FLOW FROM FINANCING ACTIVITIES

Loans obtained during the year

Loans repayments during the year

Advance paid to lease hold property

Repayment of lease liabilities

Net cash flow from/(used in) financing activities

(12,469) (99,851)

241,000 1,817,126

(453,848) (2,069,126)

• (4,882)
  (30,573) (33,825)

(243,421) (290,707)

(12,165)

(120,206)

304,640 2,010,017

(581,952) (2,230,907)

• (4,882)
  (28,593) (31,845)

(305,905) (257,617)

Net increase / (decrease) in cash & cash equivalents	98,726	(85,108)
Cash & cash equivalent at the beginning of the year	(27,024)	58,084

108,415 (95,294)

(26,680) 68,614

Cash & cash equivalent at the end of the year	71,702	(27,024)	81,735	(26,680)
Cash in hand and at bank	71,702	32,674	82,801	38,583
Bank overdraft	-	(59,698)		(1,066)	(65,263)
Cash & cash equivalent at the end of the year	71,702	(27,024)	81,735	(26,680)

LANKA ALUMINIUM INDUSTIES PLC

Notes to the financial statements

1. BASIS OF PREPARATION
2. 1. The condensed interim financial statements of Lanka Aluminium Industries PLC are for the year ended 31st March 2024. They have been prepared in accordance with LKAS 34, interim financial reporting. These interim financial statements have been prepared in accordance with the SLFRS standards and IFRIC interpretations issued and effective as at the time of preparing these statements. The condensed interim financial statements do not include all of the information required for full annual financial statements and have not been audited.
   2. The same accounting policies and methods of computation have been followed in the interim financial statements as compared to the recent Annual Financial statement published for the year ended 31st March 2023.
3. COMPARATIVE INFORMATION

Comparative information has been restated / reclassified where necessary in line with the changes to the new Sri Lanka Accounting Standards (SLFRS / LKAS) which are effective from 1st January 2012.

3. STATED CAPITAL

The Stated Capital is consisting of 68,514,115 ordinary shares issued as at 31st March 2024.

4. INCOME TAX EXPENSE

The Company is liable to pay income tax at the rate of 30% (2022/23 - 18%, 24% & 30%) of its taxable profits in accordance with the provisions of the Inland Revenue Act, No. 24 of 2017 and (Amendment) Act, No. 45 of 2022.

5. EARNINGS PER SHARE (EPS)

Basic Earnings Per Share is calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

	Company	Group
	2024	2023	2024	2023
	Rs'000	Rs'000	Rs'000	Rs'000
Profit for the year ended 31st March	187,855	173,971	213,963	197,019
Weighted Average No. of Shares	68,514	68,514	68,514	68,514
Earnings Per Share	2.74	2.54	3.12	2.88

6. CONTINGENT LIABILITIES

There is no change in the nature of contingent liabilities as at 31st March 2024 as compared to the contingent liabilities which were disclosed in the accounts for the year ended 31st March 2023.

7. EVENTS AFTER REPORTING DATE

There were no material events occurring after the reporting date as at 31st March 2024 that require adjustments to or disclosure in the Financial Statements.

8. CAPITAL COMMITMENT

The company has established L/C for approx. US$ 134,000/- to purchase a new aluminium melting facility to improve and augment the current melting facility.

9. IMPACT OF MONETARY ASSETS/LIABILITIES

The company has a foreign exchange liability of approx. US$ 64,500/- to be settled in the future. This is partially offset by monetary assets of approx. US$ 342,800/-. These figures are already incorporated in the accounts in LKR, at the exchange rate prevailing as at 31st March 2024, which was Rs. 295.54/US$ for monetary assets and Rs. 305.33/US$ for monetary liabilities.

10. FLOAT ADJUSTMENT

The float adjustment market capitalization of the Company as at 31st March 2024 was Rs. 802,625,729/- under Option 5 of Rule 7.13.1 (a) of the Listing Rules of the Colombo Stock Exchange and the Company has complied with the minimum public holding requirement applicable under the said option.

11. FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE

The Company and the Group have not disclosed the fair values for financial instruments such as cash and cash equivalents (including bank overdrafts), trade and other receivables, amounts due from related parties, loans and borrowings, trade and other payables and amounts due to related parties, because their carrying amounts are a reasonable approximation of fair value.

Other non-current financial assets have been valued at fair value as at the balance sheet date and the gain/(loss) has been accounted under other comprehensive income.

	LANKA ALUMINIUM INDUSTRIES PLC
	TWENTY (20) MAJOR SHAREHOLDERS AS AT 31ST MARCH 2024
	NAME OF THE SHAREHOLDER	NUMBER	PERCENTAGE
		OF SHARES
1	CLOVIS COMPANY LIMITED	34,317,145	50.09
2	EMFI CAPITAL LIMITED	3,089,571	4.51
3	HATTON NATIONAL BANK PLC/PALANIYANDY MURALITHARAN	1,750,000	2.55
4	SANDWAVE LIMITED	1,144,629	1.67
5	MR. RUNANTISSA SURESH ANTHONY SILVA	1,051,495	1.53
6	MR. KANGASU CHELVADURAI VIGNARAJAH	651,794	0.95
7	SEYLAN BANK PLC/NIRODHA DASUN DIAS	424,495	0.62
8	MR. V. SUNILGAVASKER	405,000	0.59
9	MRS. PUSHPA NARHARI BHATT	393,065	0.57
10	MR. M.M. FUAD	367,622	0.54
11	MERCHANT BANK OF SRI LANKA & FINANCE PLC/R.M.N.C. BANDRA	351,682	0.51
12	EST.OF LAT P.K.C.P. SAMARASINGHE (DECEASED)/P.K.CHAMARA PERERA	341,951	0.50
13	PEOPLE'S LEASING & FINANCE PLC/MR.H.A.D.U.G.GUNASEKERA	313,526	0.46
14	DFCC BANK PLC/MR.P.PRANAVAN	300,000	0.44
15	SEYLAN BANK PLC/KASMODERA LIYANAGE JANAKA PRASANNA LIYANAGE	261,698	0.38
16	MR. V.C. MAHTANI	260,000	0.38
17	SENKADAGALA FINANCE PLC/M.M.FUAD	259,100	0.38
18	MR. Z.G. CARIMJEE	245,500	0.36
19	MR. D.N.P. RATHNAYAKE	230,170	0.34
20	DR. A.A.M. DHARMADASA	221,024	0.32
	PERCENTAGE OF SHARES HELD BY THE PUBLIC		49.85
	NUMBER OF SHAREHOLDERS REPRESENTING THE PUBLIC HOLDING		3,562
	THE DIRECTORS DO NOT HOLD ANY SHARES