Mercantile Shipping : Quarterly Financial Statement as at 31/03/2024

Q 4

2023/2024

MERCANTILE SHIPPING COMPANY PLC

Interim Financial Reports

For the period ended 31 March 2024

Statutory Status

COMPANY NAME

Mercantile Shipping Company PLC

LEGAL FORM

Quoted Public Company with Limited Liability, Incorporated on the 17th of March 1981 Registered No. PQ 148

BOARD OF DIRECTORS

H A R K Wickramatileka (Chairman)

T Kriwat (Managing Director)

Capt K Kriwat

(Mrs) C D A Peiris

Capt R E G Codipilly

M S P Gunawardena

P A Nandasena

W S Weeraman

C C Wickramatileka

(Mrs) Y S Wettasinghe ( Resigned w e f 05.06.2023 )

(Mrs) S A S K Jayasekara ( Resigned w e f 05.12.2023 )

CORPORATE SECRETARIES

Managers & Secretaries (Pvt) Ltd

BANKERS

Commercial Bank of Ceylon PLC

AUDITORS

Ernst & Young (Chartered Accountants)

LAWYERS

Asian Legal Partners

(Attorneys-at-Law & Notaries Public)

REGISTERED OFFICE

108, Aluthmawatha Road

Colombo 15, Sri Lanka

Tel: [phone]

Fax: [phone]

E-mail: [e-mail]

Web: www.mercmarine.net

MERCANTILE SHIPPING COMPANY PLC

I N T E R I M F I N A N C I A L S T A T E M E N T S	All in LKR

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

12 Months

03 Months

	Unaudited	Audited	Increase/	Unaudited	Unaudited	Increase/
	(Decrease)	(Decrease)
For the Year ended 31 March 2024	31.03.2024	31.03.2023	31.03.2024	31.03.2023
%	%
(In Rs.)
Revenue	18,444,324	17,200,885	7	5,048,581	3,998,581	26
Cost of Sales	(3,261,113)	(3,171,479)	3	(763,651)	(831,282)	(8)
Gross Profit / (Loss)	15,183,211	14,029,406	8	4,284,930	3,167,299	35
Other Income / (Expenses)	141,494	35,890	294	16,419	232,764	(93)
Adiministrative Expenses	(23,244,250)	(20,243,770)	15	(4,261,116)	(5,520,610)	(23)
Operating Profit/(Loss)	(7,919,545)	(6,178,474)	28	40,233	(2,120,547)	(102)
Finance Cost	(425,331)	(36,101)	1,078	(87,526)	(14,360)	510
Finance Income	6,242,687	7,565,090	(17)	1,250,357	1,807,830	(31)
Profit / (Loss) before Tax	(2,102,189)	1,350,516	(256)	1,203,064	(327,076)	(468)
Income Tax expense / (reversal)	-	(2,475,378)	(100)	-	857,624	100
Profit/Loss for the Period	(2,102,189)	(1,124,862)	87	1,203,064	530,548	127
Earnings per Share
Basic Earnings / (Loss) per Share*	(0.74)	(0.40)		0.42	0.19

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

12 Months

03 Months

For the Year ended 31 March 2024 (In Rs.)

Profit / (Loss) for the Period

Other Comprehensive Income

Unaudited	Audited	Increase/	Unaudited	Unaudited	Increase/
(Decrease)	(Decrease)
31.03.2024	31.03.2023	31.03.2024	31.03.2023
%	%
(2,102,189)	(1,124,862)	87	1,203,064	530,548	127

Acturial Gain/(loss)	230,421	490,148	(53)	-	(172,925)	(100)
Deferred tax on Acturial (Gain)/loss	(49,523)	(147,044)	(66)	-	(115,725)	(100)
Other Comprehensive Income/(Loss) for the period, net of tax	180,898	343,104	(47)	-	(288,650)	(100)
Total Comprehensive Income for the period, net of tax	(1,921,291)	(781,758)	146	1,203,064	241,898	397
Attributable to Equity Holders	(1,921,291)	(781,758)	146	1,203,064	241,898	397

*Computed based on 2,844,990 ordinary shares on issue at 31.03.2024.

The Notes to the Financial Statements on pages from 10 to 11 form an integral part of the Financial Statements. The figures in brackets indicate deductions.

Page 2 of 16

MERCANTILE SHIPPING COMPANY PLC

I N T E R I M F I N A N C I A L S T A T E M E N T S			All in LKR
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
		Attributable to Equity Holders of the Company
For the Year ended 31 March 2024	Stated Capital	Retained Earnings	Total Equity
Balance as at 01	April 2022	37,262,606	44,122,341	81,384,947
Profit / (Loss) for the Period	-	(1,124,862)	(1,124,862)
Other Comprehensive Income	-	343,104	343,104
Balance as at 31	March 2023	37,262,606	43,340,583	80,603,189
Balance as at 01	April 2023	37,262,606	43,340,584	80,603,190
				-
Profit / (Loss) for the Period	-	(2,102,189)	(2,102,189)
Other Comprehensive Income	-	180,898	180,898
Balance as at 31	March 2024	37,262,606	41,419,293	78,681,899

Page 4 of 16

MERCANTILE SHIPPING COMPANY PLC

I N T E R I M F I N A N C I A L S T A T E M E N T S				All in LKR
CONSOLIDATED STATEMENT OF CASH FLOW
	Notes	Unaudited		Audited 31.03.2023
For the Year ended 31 March 2024	31.03.2024
Cash Flows from / (used in ) Operating Activities
Profit / (Loss) before tax		(2,102,189)	1,350,516
Adjustments for;
Depreciation		2,613,416	2,613,414
Fair value adjustment of investments		39,984	287,028
Exchange Gain/Loss		(23,565)	-
Provision for Defined Benefit Obligation		-	373,553
Finance Cost		425,331	36,101
Finance Income		(6,242,687)	(7,565,090)
Dividend Income Received		(125,075)	(10,353)
Operating Profit / (Loss) before Working Capital Changes		(5,414,785)	(2,914,831)
(Increase) / Decrease in Other Receivables		(1,645,654)	223,466
(Increase) / Decrease in Advance and Prepayments		157,186	168,810
Increase / (Decrease) in Trade and Other Payables		1,170,855	(1,039,995)
Cash Generated from / (used in) Operations		(5,732,398)	(3,562,551)
Finance Cost Paid		(425,331)	(36,101)
Income Tax (Paid)/Credit		(1,287,824)	(399,858)
Gratuity Paid		(512,500)	-
Net Cash from / (used in) Operating Activities		(7,958,053)	(3,998,510)
Cash Flows from / (used in) Investing Activities
Finance Income Received		9,647,798	7,565,090
Investment in Fixed Deposits		(4,435,398)	(7,794,346)
Dividend Received		125,075	10,353
Net Cash from / (used in) investing Activities		5,337,475	(218,902)
Cash Flows from / (used in) Financing Activities		-	-
Interest Bearing Loans and Borrowings		-	-
Repayment of Interest Bearing Loans and Borrowings		-	-
		-	-
Net Increase / (Decrease) in Cash and Cash Equivalents		(2,620,577)	(4,217,412)
Cash and Cash Equivelants at the beginning of the period		(1,123,974)	3,093,438
Cash and Cash Equivelants at the end of the period	09	(3,744,551)	(1,123,974)

The Notes to the Financial Statements on pages from 10 to 11 form an integral part of the Financial Statements. The figures in brackets indicate deductions.

Page 5 of 16

MERCANTILE SHIPPING COMPANY PLC

I N T E R I M F I N A N C I A L S T A T E M E N T S	All in LKR

STATEMENT OF PROFIT OR LOSS

12 Months

03 Months

.

Company

	Unaudited	Audited	Increase/	Unaudited	Unaudited	Increase/
	(Decrease)	(Decrease)
For the Year ended 31 March 2024	31.03.2024	31.03.2023	31.03.2024	a 31.03.2023
%	%

(In Rs.)

Revenue

18,444,324

17,200,885

7

5,048,581

3,998,58126

Cost of Sales	(3,261,113)	(3,171,479)	3	(763,651)		(831,282)		(8)
Gross Profit / (Loss)	15,183,211	14,029,406	8	4,284,930		3,167,299
Other Income	141,494	35,890	294	16,419		232,764		(93)
Adiministrative Expenses	(23,150,550)	(20,150,970)	15	(4,261,116)		(5,428,510)		(22)
Operating Profit/(Loss)	(7,825,845)	(6,085,674)	29	40,233		(2,028,447)		(102)
Finance Cost	(425,331)	(36,101)	100	(87,526)		(14,360)		100
Finance Income	6,242,687	7,565,090	(17)	1,250,357		1,807,830		(31)
Profit / (Loss) before Tax	(2,008,489)	1,443,316	(239)	1,203,064		(234,977)		(612)
Income Tax (expense) / reversal	-	(2,475,378)	(100)	-	-	857,624		(100)
Profit/ Loss for the year	(2,008,489)	(1,032,062)	95	1,203,064		622,647		93.22
Earnings per Share
Basic Earnings / (Loss) per Share	(0.71)	(0.36)		0.42		0.22

STATEMENT OF COMPREHENSIVE INCOME

12 Months

03 Months

Company

	Unaudited	Audited	Increase/	Unaudited		Unaudited	Increase/
	(Decrease)		(Decrease)
For the Year ended 31 March 2024	31.03.2024	31.03.2023	31.03.2024	a	31.03.2023
%	%
(In Rs.)
Profit / (Loss) for the Period	(2,008,489)	(1,032,062)	95	1,203,064		622,647	93
Other Comprehensive Income
Acturial Gain/(loss)	230,421	490,148	(53)	-		172,925	100
Deferred tax on Acturial (Gain)/loss	(49,523)	(147,044)	(66)	-		115,725	100
Other Comprehensive Income for the	180,898	343,104	(47)	-		288,650	100
period, net of tax
Total Comprehensive Income for the period, net of tax	(1,827,591)	(688,958)	165	1,203,064		333,997	260

The Notes to the Financial Statements on pages from 10 to 11 form an integral part of the Financial Statements.

The figures in brackets indicate deductions.

Page 6 of 16

MERCANTILE SHIPPING COMPANY PLC
I N T E R I M F I N A N C I A L S T A T E M E N T S		All in LKR
STATEMENT OF FINANCIAL POSITION
Company
	Unaudited	Audited
Notes	as at	as at
As at 31 March 2024	31.03.2024	31.03.2023

ASSETS
Non-Current Assets
Property, Plant & Equipment		101,204	198,891
Investment Property		37,095,499	39,611,228
Investment in Subsidiary		15,000,000	15,000,000
Deferred Tax Asset		211,219	260,742
		52,407,922	55,070,861
Current Assets
Other Receivables		6,822,850	3,894,355
Advance and Prepayments		1,014,837	1,172,023
Other Current Financial Assets	08	49,663,815	48,644,964
Cash and Cash Equivalents	09	296,975	320,540
		57,798,477	54,031,882
Total Assets		110,206,399	109,102,743
EQUITY AND LIABILITIES
Capital and Reserves
Stated Capital		37,262,606	37,262,606
Retained Earnings		30,287,335	32,114,926
Total Equity		67,549,941	69,377,532
Non-Current Liabilites
Retirement Benefit Liabilty		264,863	1,007,784
		264,863	1,007,784
Current Liability
Trade & Other Payables		38,271,179	37,194,023
Interest Bearing Loans and Borrowings	10	4,120,416	1,523,404
		42,391,595	38,717,427
Total Equity and Liabilities		110,206,399	109,102,743
NAV per share (Rs.)
	23.74	24.39

Page 7 of 16

MERCANTILE SHIPPING COMPANY PLC

I N T E R I M F I N A N C I A L S T A T E M E N T S			All in LKR
STATEMENT OF CHANGES IN EQUITY
Company
	Stated Capital	Retained	Total Equity
For the Year ended 31 March 2024	Earnings
Balance as at 01 April 2022	37,262,606	32,803,885	70,066,491
Profit / (Loss) for the Period	-	(1,032,063)	(1,032,063)
Other Comprehensive Income	-	343,104	343,104
Balance as at 31 March 2023	37,262,606	32,114,926	69,377,532
Balance as at 01 April 2023	37,262,606	32,114,926	69,377,529
Profit / (Loss) for the Period	-	(2,008,489)	(2,008,489)
Other Comprehensive Income	-	180,898	180,898
Balance as at 31 March 2024	37,262,606	30,287,335	67,549,941

The figures in brackets indicate deductions.

Page 8 of 16

MERCANTILE SHIPPING COMPANY PLC

I N T E R I M F I N A N C I A L S T A T E M E N T SAll in LKR

STATEMENT OF CASH FLOW

Company

For the Year ended 31 March 2024	Notes	Unaudited	Audited
31.03.2024	31.03.2023
Cash Flows from / (used in ) Operating Activities
Profit / (Loss) before tax			(2,008,489)	1,443,316
Adjustments for;
Depreciation			2,613,416	2,613,414
Provision for Defined Benefit Obligation				373,553
Fair value adjustment of investments			39,984	287,028
Exchange (gain) / loss			(23,565)
Finance Cost			425,331	36,101
Finance Income			(6,242,687)	(7,565,090)
Dividend Income received			(125,075)	(10,353)
Operating Profit / (Loss) before Working Capital Changes			(5,321,085)	(2,822,031)
(Increase) / Decrease in Other Receivables			(1,645,654)	223,466
(Increase) / Decrease in Advance and Prepayments			157,186	168,810
Increase / (Decrease) in Trade and Other Payables			1,077,156	(1,132,096)
Cash Generated from / (used in) Operations			(5,732,397)	(3,561,851)
Finance Cost Paid			(425,331)	(36,101)
Income Tax (Paid)/Credit			(1,287,824)	(399,858)
Gratuity Paid			(512,500)	-
Net Cash from / (used in) Operating Activities			(7,958,052)	(3,997,810)
Cash Flows from / (used in) Investing Activities
Finance Income Received			9,647,798	7,565,090
Investment in fixed Deposits			(4,435,398)	(7,794,346)
Dividend Income received			125,075	10,353
Net Cash from / (used in) Investing Activities			5,337,475	(218,902)
Cash Flows from / (used in) Financing Activities
Interest Bearing Loans and Borrowings			-	-
Repayment of Interest Bearing Loans and Borrowings			-	-
Net Cash from / (used in) Financing Activities			-	-
Net Increase / (Decrease) in Cash and Cash Equivalents			(2,620,577)	(4,216,712)
Cash and Cash Equivelants at the beginning of the period			(1,202,864)	3,013,848
Cash and Cash Equivelants at the end of the period	09		(3,823,441)	(1,202,864)

The Notes to the Financial Statements on pages from 10 to 11 form an integral part of the Financial Statements. The figures in brackets indicate deductions.

Page 9 of 16