31st March 2018 · 2018. 5. 14. · THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st March 2018 Statement of Financial

The Lanka HospitalsC O R P O R A T I O N PLC (PQ 180)

PROVISIONAL CONSOLIDATED FINANCIAL

STATEMENTS

FOR THE QUARTER ENDED

31st March 2018

THE LANKA HOSPITALS CORPORATION PLC

Provisional Consolidated Financial Statements

For the Quarter ended

31st March 2018

Board of DirectorsDr. Sarath PARANAVITANE - Chairman

Ven. Thiniyawala PALITHA THERO

Tel: +94 11 5430000 Fax: +94 11 4511199

E-mail: [email protected]

(Alternate Director to Mr. Daljit SINGH )

No. 578, Elvitigala Mawatha, Narahenpita, Colombo 05

Principal Place of Business & Registered Office

Mrs.Umashanthiee RAJAMANTRI

Mr.Keerthi Bandara KOTAGAMA

Mr.Saadi Wadood

Dr.Anil ABEYWICKRAMA

Mr.Anurag Kalra

Web: www.lankahospitals.com

Mr.Asendra Chaminda SIRIWARDENA

Mr.Kalyana Sundaram SRIVASTAVA

Mr.Thanuja Lasitha WEERATNE

Mr.Meghraj Arvindrao GORE(Alternate Director to Mr. Kalyana Sundaram SRIVASTAVA)

Mr.Nandana Jayantha MUNASINGHE

Mr.Ranjan Mohan WIJESINGHE

Mr. Daljit SINGH

THE LANKA HOSPITALS CORPORATION PLCProvisional Consolidated Financial Statements for the Quarter ended 31st March 2018

Statement of Financial Position

As at, 31st March 2018 31st Dec 2017 31st March 2018 31st Dec 2017Audited Audited

Rs. Rs. Rs. Rs.

ASSETS

Non Current Assets

Property, Plant & Equipment 4,478,939,541 4,520,192,810 4,087,359,540 4,126,645,769

Intangible Assets 93,865,618 95,520,181 64,199,045 64,919,467

Investment Property - - 124,000,000 124,000,000

Advance Lease Premium 206,634,775 203,169,008 206,634,775 203,169,008

Investment in Subsidiary - - 414,000,020 414,000,020

Total Non Current Assets 4,779,439,934 4,818,881,999 4,896,193,380 4,932,734,264

Current Assets

Inventories 301,912,582 294,734,245 241,260,191 229,990,892

Trade & Other Receivables 656,377,118 551,484,152 579,999,685 493,872,918

Amounts due from Related Parties 4,476,161 6,763,000 156,785,255 143,226,342

Economic Service Charge Recoverable 4,275,989 2,763,657 - -

Other Financial Assets 2,134,624,553 2,225,856,177 1,674,554,268 1,767,813,585

Cash and Cash Equivalents 245,915,994 249,420,585 205,255,491 247,730,886

Total Current Assets 3,347,582,398 3,331,021,816 2,857,854,890 2,882,634,623 Total Assets 8,127,022,332 8,149,903,815 7,754,048,270 7,815,368,887

EQUITY AND LIABILITIES

Equity

Stated Capital 2,671,543,090 2,671,543,090 2,671,543,090 2,671,543,090

Revaluation Reserve 1,066,204,888 1,066,204,888 996,747,320 996,747,320

Retained Earnings 2,253,026,276 2,282,277,858 1,902,046,180 1,978,640,320

Total Equity 5,990,774,254 6,020,025,836 5,570,336,591 5,646,930,730

Non Current Liabilities

Employee Benefit Obligations 172,587,146 166,551,295 155,950,373 150,614,829

Deferred Tax Liabilities 1,019,190,212 998,190,212 969,697,360 948,697,360

Total Non Current Liabilities 1,191,777,358 1,164,741,507 1,125,647,733 1,099,312,189

Current Liabilities

Amounts due to Related Parties 16,505,428 23,481,174 4,769,076 4,769,075

Trade & Other Payables 601,356,361 669,823,897 736,583,036 797,415,984

Income Tax Payable 53,509,413 38,458,806 44,704,335 33,568,314

Bank Overdraft 273,099,517 233,372,595 272,007,500 233,372,595

Total Current Liabilities 944,470,719 965,136,472 1,058,063,947 1,069,125,968

Total Liabilities 2,136,248,077 2,129,877,979 2,183,711,680 2,168,438,157 Total Equity & Liabilities 8,127,022,332 8,149,903,815 7,754,048,270 7,815,368,887

The figures as at 31st March 2018 are provisional and subject to audit.

I certify that the consolidated financial statements comply with the requirements of the Companies Act No. 07 of 2007.

Chief Financial Officer

The Board of the Directors is responsible for the preparation and presentation of these consolidated financial statements.

Approved and signed for and on behalf of the Board.

Chairman

Date: 11th May 2018

Colombo

(Amounts in brackets indicate deductions)

Group Company

Director


Statement of Comprehensive Income

For the 03 months ended, 31st March 2018 31st March 2017 31st March 2018 31st March 2017

Rs. Rs. Rs. Rs.

Revenue 1,701,852,619 1,508,621,497 1,399,483,633 1,237,340,186

Cost of services (967,566,864) (809,460,083) (817,056,687) (691,777,384)

Gross profit 734,285,755 699,161,413 582,426,946 545,562,803

Other operating income 14,478,730 11,287,587 16,112,230 12,742,587

Administrative expenses (422,214,619) (373,611,052) (330,745,047) (295,146,034)

Other operating expenses (154,515,902) (154,331,015) (132,829,068) (139,861,249)

Profit from operations 172,033,964 182,506,933 134,965,062 123,298,106

Finance income 68,677,435 57,138,708 54,489,194 46,620,320

Profit before tax 240,711,399 239,645,641 189,454,257 169,918,425

Income tax expense (46,230,812) (27,675,212) (42,316,227) (24,761,905)

Profit for the period 194,480,587 211,970,428 147,138,029 145,156,520

Other comprehensive Income - - - -

Other comprehensive income net of tax - - - -

Total comprehensive income for the period 194,480,587 211,970,428 147,138,029 145,156,520

Basic earnings per share 0.87 0.95 0.66 0.65

Dividend per share 1.00 - 1.00 -


Group Company


Company Statement of Changes in Equity

Stated Revaluation Retained Total

capital reserve earning / (loss)

Balance as at 1st January 2017 2,671,543,090 1,220,128,576 1,636,428,932 5,528,100,598

Profit for the period (January 2017 - March 2017) - - 145,156,520 145,156,520

Balance as at 31st March 2017 2,671,543,090 1,220,128,576 1,781,585,452 5,673,257,118

Balance as at 1 January 2018 2,671,543,090 996,747,320 1,978,640,320 5,646,930,730


Dividend Paid - - (223,732,169) (223,732,169)

Balance as at 31st March 2018 2,671,543,090 996,747,320 1,902,046,180 5,570,336,591

Group Statement of Changes in Equity

Stated Revaluation Retained Total

capital reserve earning / (loss)

Balance as at 1st January 2017 2,671,543,090 1,284,777,892 1,887,953,836 5,844,274,819



Balance as at 1 January 2018 2,671,543,090 1,066,204,888 2,282,277,858 6,020,025,835


Dividend Paid - - (223,732,169) (223,732,169)




Cash Flow Statement

CASH FLOW FROM OPERATING ACTIVITIES 31st March 2018 31st March 2017 31st March 2018 31st March 2017

Rs. Rs. Rs. Rs.

Profit before tax 240,711,399 239,645,641 189,454,257 169,918,425

Adjustments for :

Interest income (45,444,488) (33,661,728) (31,256,248) (23,143,340)

Depreciation on property, plant and equipment 95,998,280 82,354,785 86,225,966 74,269,540

Amortisation of intangible assets 5,038,504 3,033,147 3,161,356 1,634,902

Amortisation of advance lease premium 1,170,869 1,170,869 1,170,869 1,170,869

Provision for defined benefit obligation 9,483,150 6,636,635 8,296,572 5,557,928

Provision for impairment of trade receivable (1,404,235) (2,774,930) (1,404,235) (2,774,930)

Gain on disposal of property, plant & equipment - (619,417) - (619,417)

Operating profit before working capital changes 305,553,478 295,785,000 255,648,535 226,013,977

(Increase) / decrease in inventories (7,178,337) 1,975,804 (11,269,299) 23,030,192

(Increase) / decrease in trade and other receivables (105,001,063) 2,255,703 (84,722,532) 13,626,233

(Increase) / decrease in amounts due from related company 2,286,839 (454,828) (13,558,913) (7,894,036)

Increase / (decrease) in amounts due to related company (6,975,746) (3,443,786) - -

Increase / (decrease) in trade and other payables (68,467,536) (66,008,519) (60,832,948) (81,270,528)

Cash generated from operating activities 120,217,635 230,109,374 85,264,844 173,505,839

Income Tax paid (10,180,205) (7,005,480) (10,180,205) (7,005,480)

Defined benefit obligation paid (3,447,299) (1,702,686) (2,961,029) (1,702,686)

Net cash flow from operating activities 106,590,131 221,401,208 72,123,610 164,797,673

Cash flow from investing activities

Purchase of property, plant and equipment (54,745,010) (480,682,776) (46,939,736) (475,454,161)

Purchase of Intangible assets (3,383,941) (2,777,107) (2,440,934) (1,969,197)

Proceeds from disposal of property, plant & equipment - 2,820,222 - 2,820,222

Advance lease premium paid (4,636,636) (4,636,636) (4,636,636) (4,636,636)

Interest income 45,444,488 33,661,728 31,256,248 23,143,340

(Investment)/withdrawal in other financial assets 91,231,624 294,948,809 93,259,317 294,948,809

Net cash flow from investing activities 73,910,525 (156,665,760) 70,498,260 (161,147,622)

Cash flow from financing activities

Dividend paid (223,732,169) - (223,732,169) -

Net cash flow from financing activities (223,732,169) - (223,732,169) -

Net increase in cash and cash equivalents (43,231,513) 64,735,449 (81,110,299) 3,650,051

Cash and cash equivalents at the beginning of the year 16,047,990 (68,262,013) 14,358,291 (69,161,165)

Cash and cash equivalents at the end of the year (Note A) (27,183,523) (3,526,565) (66,752,008) (65,511,114)

Note A

Cash & Cash Equivalents at the end of the Period

Cash & Cash Equivalents 245,915,994 282,485,675 205,255,491 220,501,126

Bank Overdraft (273,099,517) (286,012,240) (272,007,500) (286,012,240)

(27,183,523) (3,526,565) (66,752,008) (65,511,114)


Group Company

3 months ended 3 months ended


Provisional Consolidated Financial Statements for the Quarter ended 31st March 2018

1). Basis of preparation of the Interim Financial Statements

Figures for the three months are provisional and subject to audit.

2). Comparative figures

3). Contingent liabilities

4). Public Holding

5). Revaluation of Assets

6). Investment in Subsidiary

The buildings of the Company / Group were revalued as at 31 December 2017 by Messrs A.A.M Fathihu - F.I.V (Sri Lanka)

independent qualified valuer. Such assets were valued on current replacement cost basis, the surplus arising from the

revaluation was transferred to the revaluation reserve and the value of the buildings of the company / group has been

reflected in the financial statements at the revalued amount.

Investment made in subsidiary represents the acquisition of 41,400,002 shares at a value of Rs. 10 per share of the Lanka

Hospitals Diagnostics (Pvt) Ltd, a fully owned subsidiary of the company.

As per the Rule No 8.7 (h) of the Colombo Stock Exchange, percentage of public shareholding as at 31/3/2018 was 16.73%

(No of shares 37,433,261) and public shareholders as at 31/3/2018 was 7,304.

There has been no significant change in the nature of the contingent Liabilities which were disclosed in the annual report for

the year ended 31 December 2017.

These interim financial statements have been prepared in accordance with Sri Lanka Accounting Standard LKAS 34 - Interim

Financial Reporting. These interim financial statements should be read in conjunction with the annual financial statements

for the year ended 31 December 2017.

Further, provisions of the Companies Act No 7 of 2007 have been considered in preparing the interim financial statements

of the Company.

Latest Financial statements have been audited for the period ended 31 December 2017.

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.

7). Investment Property

8). Capital Commitments

9). Reclassification of Cost of Services Comparative Figures

Investment property consists of value attributable to 7th floor of the building constructed on leasehold land, which is given

on rental to Lanka Hospitals Diagnostics (Private) Limited.

Lanka Hospitals Diagnostics (Private) Limited is committed to make a minimum investment of Rs. 500,000,000 in project

fixed assets to get the entitlement for a tax exemption period of seven years. The Company has invested Rs. 423,652,183 in

fixed assets as of 31st March 2018 and the balance commitment amounting to Rs. 76,347,817 to be fulfilled.

For the better presentation, the management has decided to reclassify the Consultant fees under cost of services which was

previously classified in administrative expenses. The amounts reclassified for 1 st quarter 2018 is Rs. 25,350,000/- and for

1 st quarter 2017 was Rs. 24,025,000/-.

The investment property has been revalued by independent qualified valuer on the current replacement cost basis on 31

December 2017, valuation is carried out by Mr. A.A.M. Fathihu (FIV), incorporated Valuer.


Provisional Consolidated Financial Statements for the Quarter ended 31st March 2018

Shareholder and Investor Information

Top 20 Shareholding as at 31st March 2018

Shareholder No of shares Holding

1 Sri Lanka Insurance Corporation Ltd - Life Fund 66,097,350 29.54%

2 Fortis Healthcare International Pte Limited 64,120,915 28.66%

3 Sri Lanka Insurance Corporation Ltd - General Fund 56,080,643 25.07%

4 Property Development PLC A/C 01 21,329,000 9.53%

5 Bank of Ceylon A/c Ceybank Unit Trust 2,943,581 1.32%

6 Bank of Ceylon A/c Ceybank Century Growth Fund 845,350 0.38%

7 Deutsche Bank AG as Trustee for Namal Acuity 800,000 0.36%

8 Ceylon Investment PLC A/c # 01 448,000 0.20%

9 Ceylon Guardian Investment Trust PLC A/C # 01 350,000 0.16%

10 Bank of Ceylon No.1 Account 309,949 0.14%

11 Deutsche Bank AG as Trustee to Candor Opportunities Fund 308,539 0.14%

12 Deutsche Bank AG-National Equity Fund 300,000 0.13%

13 Deutsche Bank AG-As Trustee for Guardian Acuity Equity Fund 249,337 0.11%

14 Sandwave Limited 227,977 0.10%

15 Mrs. Conceicao Aparecida Dos Santos Woodward 220,300 0.10%

16 Mr.Abeysiri Hemapala Munasinghe 179,471 0.08%

17 Sezeka Limited 166,640 0.07%

18 Mr.Surendran Subramaniam 156,104 0.07%

19 Life Insurance Corporation (Lanka) Ltd 120,568 0.05%

20 Mr.Shyam Anel De Silva 115,196 0.05%

215,368,920 96.26%

Individual / Institution

As % As %

Individual 7,183 98.30 7,706,075 3.44

Institution 124 1.70 216,026,094 96.56

7,307 100.00 223,732,169 100.00

Resident / Non-Resident

As % No of Shares As %

Resident 7,278 99.60 158,645,870 70.91

Non-Resident 29 0.40 65,086,299 29.09

7,307 100.00 223,732,169 100.00

Directors'/Senior Management Shareholdings as at 31st March 2018

Board of Directors Position No of shares Holding %

Dr. Sarath PARANAVITANE Chairman - -

Ven. Thiniyawala PALITHA THERO Director - -

Mr. Daljit SINGH Director - -

Mr.Kalyana Sundaram SRIVASTAVA Director - -

Dr. Anil ABEYWICKRAMA Director - -

Mrs.Ranathunga Arachchige Dona Umashanthiee RAJAMANTRI Director - -

Mr.Hewakumanayakage Asendra Chaminda SIRIWARDENA Director -

Mr.Weeratnemulla Gamage Thanuja Lasitha WEERATNE Director - -

Mr.Nandana Jayantha MUNASINGHE Director - -

Mr.Keerthi Bandara KOTAGAMA Director - -

Mr.Ranjan Mohan WIJESINGHE Director - -

Mr.Saadi Wadood Director - -

Mr Anurag KALRA (Alternative Director to Mr.Daljith SINGH) Alternate Director - -

Senior Management

Group Chief Executive

OfficerDr.Prasad Medawatte - -

No of Shareholders No of Shares

No of Shareholders

Mr Meghraj Aravindrao GORE (Alternative Director to Mr.Kalyana

Sundaram SRIVASTA)Alternate Director - -


Shareholder and Investor Information (cont.)

Price fluctuation (Market price of Ordinary share)

Rs. Rs.

Highest price

Lowest price

Closing Price

Summary of Share Ranges

Share RangeNo of

shareholdersNo of shares Holding %

1 1 -1,000 5,933 2,095,119 0.94

2 1001 - 10000 1,259 3,443,386 1.54

3 10,001 - 100,000 94 2,712,720 1.21

4 100,001 - 1,000,000 16 4,909,455 2.19

5 1,000,001 - 10,000,000 1 2,943,581 1.32

6 10,000,001 & Above 4 207,627,908 92.80

7,307 223,732,169 100.00

60.00 61.50

31st March 2018 31st March 2017

68.50

58.00

Current Interim Period Comparative Period

3 Months ended 3 months ended

64.00

56.00


Financial Indicators

Group Company Group Company1 Net asset per share Rs. Rs. Rs. Rs.

Total Assets - Short Term & Long Term Liabilities 26.78 24.90 26.91 25.24

Total No of Shares 223,732,169 223,732,169

2 Gearing Ratio

Total Debt N/A N/A N/A N/A

Total Equity -

5,646,930,730 3 Quick Asset Ratio (Times)

Current Assets-Inventory 3.22 2.47 3.15 2.48

Current Liabilities 2,616,594,700

1,058,063,947 4 Interest Cover

Profit before interest & tax (PBIT) N/A N/A N/A N/A

Interest charges 108,663,485

-

Current Period

3 Months ended 31st March 2018

Comparative Period

Immediately Preceding Financial Year

31st December 2017 (Audited)

Current Interim Period

Corporate Information

Name of the Company

The Lanka Hospitals Corporation PLC

Company Registration No.

PQ 180

Registered Office

No.578, Elvitigala Mawatha,

Narahenpita, Colombo 05, Sri Lanka

Tel: +94 11 5430000

Fax: +94 11 4511199


Secretaries & Registrars to Shares

Business Intelligence (Private) Limited

No. 8, Tickell Road,

Colombo 08, Sri Lanka

Tel: +94 112015900

Fax: +94 112015950


Documents

31st March 2018 · 2018. 5. 14. · THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st March 2018 Statement of Financial