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For the Year Ended 31 March 2018
INTERIM FINANCIAL STATEMENTS
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Audited Audited Unaudited Unaudited Audited Audited Unaudited UnauditedRe-stated Re-stated
Year Year 3 Months 3 Months Year Year 3 Months 3 Monthsended ended Variance Ended Ended Variance ended ended Variance Ended Ended Variance
31.03.2018 31.03.2017 31.03.2018 31.03.2017 31.03.2018 31.03.2017 31.03.2018 31.03.2017
Revenue 14,716,147 17,925,373 -17.9% 3,390,825 4,327,766 -21.6% 9,035,974 9,637,973 -6.2% 1,871,182 2,379,650 -21.4%
Cost of sales (11,693,030) (14,568,945) -19.7% (2,666,571) (3,531,046) -24.5% (6,586,427) (7,216,966) -8.7% (1,299,326) (1,799,779) -27.8%
Gross profit 3,023,117 3,356,428 -9.9% 724,254 796,720 -9.1% 2,449,547 2,421,007 1.2% 571,856 579,871 -1.4%
Other income 182,693 100,022 82.7% 112,754 54,051 108.6% 909,445 117,381 674.8% 856,722 56,321 1421.1%
Distribution expenses (389,179) (436,336) -10.8% (121,732) (151,913) -19.9% (229,677) (226,625) 1.3% (82,921) (74,823) 10.8%
Administrative and other expenses (1,739,284) (1,460,282) 19.1% (438,606) (301,537) 45.5% (1,521,437) (1,287,392) 18.2% (358,301) (268,975) 33.2%
Profit from operating activities 1,077,347 1,559,832 -30.9% 276,670 397,321 -30.4% 1,607,878 1,024,371 57.0% 987,356 292,394 237.7%
Finance income 58,699 97,868 -40.0% 24,591 10,378 137.0% 159,560 204,488 -22.0% 100,038 64,569 54.9%
Finance cost (407,200) (295,125) 38.0% (87,542) (94,053) -6.9% (99,226) (52,199) 90.1% (12,233) (26,120) -53.2%
Net finance (cost) / income (348,501) (197,257) 76.7% (62,951) (83,675) -24.8% 60,334 152,289 -60.4% 87,805 38,449 128.4%
Change in fair value of investment property - - - - - 111,020 -100.0% 111,020 -100.0%
Share of profit of equity accounted investee (net of income tax) 137,612 76,027 81.0% 20,374 24,324 -16.2% - - - - - -
Profit before income tax expense 866,458 1,438,602 -39.8% 234,093 337,970 -30.7% 1,668,212 1,287,680 29.6% 1,075,161 441,863 143.3%
Income tax expense (197,558) (312,495) -36.8% (17,882) (76,732) -76.7% (211,515) (220,869) -4.2% (38,530) (60,579) -36.4%
Profit for the year / period 668,900 1,126,107 -40.6% 216,211 261,238 -17.2% 1,456,697 1,066,811 36.5% 1,036,631 381,284 171.9%
Other comprehensive income
Items that will never be reclassified to profit or loss
Employee benefit plan actuarial gains / (losses) (11,645) 7,691 (1,921) 7,691 (10,260) 5,596 (2,166) 5,596
Gain from revaluation of land 1,633,673 - - - 1,320,533 - - -
Deferred tax on actuarial gains / (losses)on defined benefit obligation 3,008 (1,880) (49) (1,880) 2,623 (1,262) (2) (1,262)
Equity accounted investee - share of other comprehensive income (2,157) 2,420 (1,048) 2,420 - - - -
Items that are or may be reclassified to profit or loss
Net change in fair value of available for sale financial assets 19,131 2,219 (10,836) (45,564) 11,424 (808) (13,592) (34,713)
Other comprehensive income for the year / period 1,642,010 10,450 (13,854) (37,333) 1,324,320 3,526 (15,760) (30,379)
Total comprehensive income for the year / period 2,310,910 1,136,557 202,357 223,905 2,781,017 1,070,337 1,020,871 350,905
Profit attributable to:
Equity holders of the parent 668,900 1,126,107 216,211 261,238 1,456,697 1,066,811 1,036,631 381,284
Profit for the year / period 668,900 1,126,107 216,211 261,238 1,456,697 1,066,811 1,036,631 381,284
Total comprehensive income attributable to:
Equity holders of the parent 2,310,910 1,136,557 202,357 223,905 2,781,017 1,070,337 1,020,871 350,905
Total comprehensive income for the year / period 2,310,910 1,136,557 202,357 223,905 2,781,017 1,070,337 1,020,871 350,905
Basic earnings per share (Rs.) 6.63 11.16 2.14 2.59 14.44 10.57 10.27 3.78
Notes:
All amounts are in Rs.'000s, unless otherwise stated.
Figures in brackets indicate deductions.
Group Company
1
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
STATEMENT OF FINANCIAL POSITION
Audited Audited Audited Audited Audited
Re-stated Re-stated
As at 31.03.2018 31.03.2017 31.03.2018 31.03.2017 01.04.2016
Assets
Non-current assets
Property, plant & equipment 7,034,395 5,174,082 6,420,890 4,916,169 4,482,016
Investment property - - 468,500 468,500 357,480
Intangible assets 10,729 11,980 6,390 7,232 921
Investments in subsidiaries - - 247,400 172,400 172,400
Investments in equity accounted investee - 800,431 - 173,545 173,545
Other investments 356,309 672,573 274,163 554,191 614,655
Defined benefit plan 84,081 94,398 80,522 91,101 98,582
Deferred tax assets 12,057 8,729 - - -
Total non-current assets 7,497,571 6,762,193 7,497,864 6,383,138 5,899,599
Current assets
Inventories 6,485,929 7,475,704 3,456,037 4,210,477 2,349,153
Trade and other receivables 1,657,783 1,990,190 917,215 1,015,144 783,486
Amounts due from related parties - 3,687 40,430 31,568 17,998
Current tax receivables 5,854 5,193 - - -
Other investments 87,203 119,673 87,203 119,673 1,282,125
Cash and cash equivalents 1,156,160 566,106 1,045,707 464,495 320,957
Total current assets 9,392,929 10,160,553 5,546,592 5,841,357 4,753,719
Total assets 16,890,500 16,922,746 13,044,456 12,224,495 10,653,318
Equity and liabilities
Equity
Stated capital 336,335 336,335 336,335 336,335 336,335
Capital reserve 4,556,009 2,956,382 4,242,869 2,922,336 2,922,336
Other components of equity 1,415,716 1,396,585 1,442,042 1,430,618 1,431,426
Retained earnings 6,392,067 6,053,067 5,674,334 4,578,426 4,213,584
Total equity attributable to the equity holders of the parent 12,700,127 10,742,369 11,695,580 9,267,715 8,903,681
Non-current liabilities
Employee benefits 203,713 174,435 186,845 161,671 154,070
Deferred tax liabilities 49,077 38,430 51,103 26,811 148
Total non-current liabilities 252,790 212,865 237,948 188,482 154,218
Current liabilities
Interest bearing borrowings 2,718,432 3,965,092 - 1,359,865 -
Trade and other payables 1,016,933 1,693,473 862,150 1,153,897 1,012,017
Amounts due to related parties - - 49,796 42,641 29,280
Current tax liabilities 87,785 190,776 88,524 110,000 386,662
Bank overdrafts 114,433 118,171 110,458 101,895 167,460
Total current liabilities 3,937,583 5,967,512 1,110,928 2,768,298 1,595,419
Total liabilities 4,190,373 6,180,377 1,348,876 2,956,780 1,749,637
Total equity and liabilities 16,890,500 16,922,746 13,044,456 12,224,495 10,653,318
Net assets per share (Rs.) 125.87 106.46 115.91 91.85 88.24
(0.18) 0.43 (0.17) 0.50
0 (0) 0 (1)
Note:
All amounts are in Rs.'000s, unless otherwise stated.
I certify that these interim financial statements are in compliance with the requirements of the Companies Act No.07 of 2007.
Thushara Jayasekara
General Manager - Finance & Planning
The Board of Directors is responsible for the preparation and presentation of these interim financial statements.
Sunil G. Wijesinha Chanaka Yatawara
Chairman Group Chief Executive Officer / Executive Director
14-May-2018
Colombo
Group Company
2
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
STATEMENT OF CHANGES IN EQUITY
Stated Capital Capital Retained Total
Reserve Development Property, General Available for Earnings Equity
Reserve Plant & Equipment Reserves Sale Reserve
Replacement Reserve
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Group
Balance as at 01.04.2016 336,335 2,956,382 785,400 308,900 466,250 (166,184) 5,625,032 10,312,115
Total comprehensive income for the year
Profit for the year 1,126,107 1,126,107
Other comprehensive income
Employee benefit plan actuarial gains 7,691 7,691
Deferred tax on actuarial losses on defined benefit obligation (1,880) (1,880)
Net change in fair value of available for sale financial assets 2,219 - 2,219
Equity accounted investee - share of OCI 2,420 2,420
Total comprehensive income for the year - - - - - 2,219 1,134,338 1,136,557
Transactions with owners, recognised directly in equity
Distribution to owners of the Company
Final dividend paid 2015 / 2016 (201,801) (201,801)
First interim dividend paid 2016 / 2017 (252,251) (252,251)
Second interim dividend paid 2016 / 2017 (252,251) (252,251)
Balance as at 31.03.2017 336,335 2,956,382 785,400 308,900 466,250 (163,965) 6,053,067 10,742,369
Total comprehensive income for the year
Profit for the year 668,900 668,900
Other comprehensive income
Employee benefit plan actuarial losses (11,645) (11,645)
Deferred tax on actuarial gains on defined benefit obligation 3,008 3,008
Net change in fair value of available for sale financial assets 19,131 - 19,131
Transfer of revaluation reserve on disposal of land of joint venture (34,046) 34,046 -
Gain from revaluation of land 1,633,673 1,633,673
Equity accounted investee - share of OCI (2,157) (2,157)
Total comprehensive income for the year - 1,599,627 - - - 19,131 692,152 2,310,910
Transactions with owners, recognised directly in equity
Distribution to owners of the Company
First interim dividend paid 2017 / 2018 (353,152) (353,152)
Balance as at 31.03.2018 336,335 4,556,009 785,400 308,900 466,250 (144,834) 6,392,067 12,700,127
Notes:
All amounts are in Rs.'000s, unless otherwise stated.
Figures in brackets indicate deductions.
Other Components of Equity
3
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
STATEMENT OF CHANGES IN EQUITY
Stated Capital Capital Retained Total
Reserve Development Property, General Available for Earnings Equity
Reserve Plant & Equipment Reserves Sale Reserve
Replacement Reserve
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Company
Balance as at 01.04.2016 as previously reported (note 3) 336,335 2,922,336 785,400 308,900 466,250 (129,124) 4,008,500 8,698,597
Impact of changes in accounting policy 205,084 205,084
Balance as at 01.04.2016 - restated 336,335 2,922,336 785,400 308,900 466,250 (129,124) 4,213,584 8,903,681
-
Total comprehensive income for the year
Profit for the year 1,066,811 1,066,811
Other comprehensive income
Employee benefit plan actuarial gains 5,596 5,596
Deferred tax on actuarial gains on defined benefit obligation (1,262) (1,262)
Net change in fair value of available for sale financial assets - - - - - (808) - (808)
Total comprehensive income for the year - - - - - (808) 1,071,145 1,070,337
Transactions with owners, recognised directly in equity
Distribution to owners of the Company
Final dividend paid 2015 / 2016 (201,801) (201,801)
First interim dividend paid 2016 / 2017 (252,251) (252,251)
Second interim dividend paid 2016 / 2017 (252,251) (252,251)
Balance as at 31.03.2017 336,335 2,922,336 785,400 308,900 466,250 (129,932) 4,578,426 9,267,715
Total comprehensive income for the year
Profit for the year 1,456,697 1,456,697
Other comprehensive income
Employee benefit plan actuarial losses (10,260) (10,260)
Deferred tax on actuarial gains on defined benefit obligation 2,623 2,623
Net change in fair value of available for sale financial assets 11,424 - 11,424
Gain from revaluation of land 1,320,533 1,320,533
Total comprehensive income for the year - 1,320,533 - - - 11,424 1,449,060 2,781,017
Transactions with owners, recognised directly in equity
Distribution to owners of the Company
First interim dividend paid 2017 / 2018 (353,152) (353,152)
Balance as at 31.03.2018 336,335 4,242,869 785,400 308,900 466,250 (118,508) 5,674,334 11,695,580
Notes:
All amounts are in Rs.'000s, unless otherwise stated.
Figures in brackets indicate deductions.
Other Components of Equity
4
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
STATEMENT OF CASH FLOWS
For the year ended 31 March 2018 2017 2018 2017
Rs.'000 Rs.'000 Rs.'000 Rs.'000
Re-stated
Cash flows from operating activities
Profit before income tax expense 866,458 1,438,602 1,668,212 1,287,680
Adjustments for;
Provision for depreciation / amortisation 169,874 134,056 137,304 95,302
Profit on disposal of property, plant & equipment (71,206) (6,016) (23,699) (1,608)
Net gain on disposal of available for sale financial assets (13,038) (6,037) (10,777) (4,253)
Net gain on disposal of financial assets at the fair value through profit or loss (1,917) (4,353) (1,917) (4,353)
Net change in fair value - financial asset at fair value through profit or loss (3,303) 2,865 (3,303) 2,865
Change in fair value of investment property - - - (111,020)
Interest expense 406,607 292,236 98,633 49,310
Interest income (13,535) (48,609) (35,268) (45,674)
Dividend income (18,152) (36,302) (14,085) (30,503)
Dividend received from subsidiary - - (76,789) (93,441)
Dividend received from equity accounted investee - - (15,750) (25,988)
Impairment of trade receivables and losses on warranty claims 29,200 124 18,214 2,857
Provision for employee benefit obligations 40,924 34,852 36,466 31,238
Expected return on plan asset (11,269) (10,801) (10,857) (10,263)
Share of profits of equity accounted investee (137,612) (76,027) - -
Unrealised profit on purchase of goods from equity accounted investee 110 - - -
Withholding tax on dividend received from equity accounted investee 1,750 2,888 - -
Provision for slow moving / obsolete inventories 64,094 50,667 32,384 26,681
Profit on disposal of joint venture (82,078) - (826,455) -
Unrealised profit on sale of goods to equity accounted investee 424 - - -
Operating profit before working capital changes 1,227,331 1,768,145 972,313 1,168,830
Decrease / (increase) in inventories 925,681 (2,099,737) 722,056 (1,888,005)
Decrease / (increase) in trade and other receivables 303,207 (491,879) 79,715 (234,515)
Decrease / (Increase) in amounts due from related parties 3,687 (3,067) (8,862) (13,570)
(Decrease) / Increase in amounts due to related parties - (361) 7,155 13,361
(Decrease) / increase in trade and other payables (669,558) 369,528 (284,764) 141,880
Cash generated from / (used in) operations 1,790,348 (457,371) 1,487,613 (812,019)
Interest paid (410,785) (288,317) (100,640) (47,303)
Income tax paid (290,883) (513,883) (206,076) (472,130)
Contribution paid and received from investment plan (net) (1,706) (768) (116) (297)
Net cash generated from / (used in) operating activities 1,086,974 (1,260,339) 1,180,781 (1,331,749)
Cash flows from investing activities
Proceeds from disposal of shares 386,124 65,055 339,919 57,709
Proceeds from disposal of unit trust investments - 1,170,140 - 1,170,140
Proceeds from disposal of equity accounted investee 1,000,000 - 1,000,000 -
Acquisitions of property, plant & equipment and intangible assets (411,589) (571,546) (336,906) (535,768)
Proceeds from disposal of property, plant & equipment 80,480 9,097 32,973 1,610
Investment in subsidiary - - (75,000) -
Interest received 13,535 48,609 35,268 45,674
Dividend received from equity accounted investee 15,750 25,988 15,750 25,988
Dividend received 18,152 36,302 90,874 123,944
Net cash generated from investing activities 1,102,452 783,645 1,102,878 889,297
Cash flows from financing activities
Dividend paid (353,152) (706,303) (353,152) (706,303)
Loans obtained 48,077,602 18,166,142 19,276,195 9,135,259
Loans paid (49,320,084) (16,840,253) (20,634,053) (7,777,401)
Net cash (used in) / generated from financing activities (1,595,634) 619,586 (1,711,010) 651,555
Net increase in cash & cash equivalents 593,792 142,892 572,649 209,103
Cash & cash equivalents at the beginning of the year 447,935 305,043 362,600 153,497
Cash and cash equivalents at end of the year 1,041,727 447,935 935,249 362,600
31.03.2018 31.03.2017 31.03.2018 31.03.2017
Rs.'000s Rs.'000s Rs.'000s Rs.'000s
Cash and bank balances 475,866 526,398 365,413 430,490
Short term deposits 680,294 39,708 680,294 34,005
1,156,160 566,106 1,045,707 464,495
Bank overdrafts (114,433) (118,171) (110,458) (101,895)
Total cash and cash equivalents 1,041,727 447,935 935,249 362,600
Notes:
All amounts are in Rs.'000s, unless otherwise stated.
Figures in brackets indicate deductions.
Group Company
Group Company
5
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Reporting entity
2. Interim consolidated financial statements
3. Basis of preparation
Change in accounting policy
31.03.2017 01.04.2016
Rs.'000s Rs.'000s
As previously reported 357,480 150,350
Fair value adjustment due to change in accounting policy 111,020 207,130
As restated 468,500 357,480
4. Disposal of investment in equity accounted investee
4.1 Reconciliation of investments in equity accounted investee
Reconciliation of the carrying amount of the equity accounted investee is as follows;
28.03.2018 31.03.2017
Rs.'000 Rs.'000
Balance at the beginning of the year 800,431 750,853
Profit for the year recognized in statement of profit or loss 137,612 76,027
Dividend received (17,500) (28,875)
Elimination of unrealized profit on downstream sales (354) 6
Other comprehensive income (2,157) 2,420
918,032 800,431
4.2 Summary of financial information of equity accounted investee
28.03.2018 31.03.2017
Rs.'000 Rs.'000
Current assets 5,026,994 5,231,767
Non current assets 61,701 62,920
Current liabilities (3,242,881) (3,695,126)
Non current liabilities (34,101) (23,789)
Net assets (100%) 1,811,713 1,575,772
Group's share of net assets (50%) 905,857 787,886
Elimination of Unrealized profits (370) -
Goodwill 12,545 12,545
Carrying amount of interest in equity accounted investee 918,032 800,431
Disposal of investment in equity accounted investee (918,032) -
- 800,431
Group
Group’s share of net assets of equity accounted investee as at the date of
divestment / year end
UML disposed its entire shareholding amounting to 17,500,000 shares representing 50% of the stated capital of the investee for a total consideration of Rs.1 billion.
United Motors Lanka PLC (the "Company"), is a Public Quoted Company incorporated on 9 May 1989 and domiciled in Sri Lanka. The registered office and the principal
place of business of the Company are located at No.100, Hyde Park Corner, Colombo 02.
The ultimate parent Company - RIL Property PLC holds 51% of the issued shares of the Company.
The consolidated interim financial statements of the Group as at and for the year ended 31 March 2018 comprise the Company and its subsidiaries and the Group's interests
in jointly controlled entities up to the date of divestment. All the group entities are limited liability companies, incorporated and domiciled in Sri Lanka.
The Company is primarily involved in distribution of brand new Mitsubishi and Fuso vehicles, spare parts, lubricants, after sales services and related services and other
companies in the Group are engaged in distribution of motor bikes, vehicles of other brands, spare parts, tyres, lubricants and assembling of vehicles.
The interim financial statements of the Company and the Group have been prepared based on the Sri Lanka Accounting Standards SLFRS/LKAS and consistently applied
the accounting policies as stated in the most recent annual report for the year ended 31 March 2017 to all periods presented in the Group financial statements except for the
following:
Subsequent to the acquisition of 51% of ordinary voting shares by RIL Property PLC of United Motors Lanka PLC (UML), UML decided to change its accounting policy in
respect of Investment Property from cost model to fair value model to be in line with the policies of the parent entity. The effects of such policy change have been applied
retrospectively in accordance with LKAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors.
The deferred tax liability already reported has been restated by Rs. 2,209,133 ( 01.04.2016 - Rs. 2,045,814 and 31.03.2017 - Rs. 163,319) as a result of fair value
adjustment arising from investment property.
United Motors Lanka PLC rented part of the land and building to its subsidiaries / affiliates. The building held by UML Property Developments Limited (UMPDL) is rented to
United Motors Lanka PLC. Accordingly, investment property in the books of UML and UMPDL do not qualify as an investment property in the consolidated financial
statements and the prior year adjustments are reflected only in the entity financial statements.
These interim financial statements have been prepared in compliance with the requirements of the Sri Lanka Accounting Standard - LKAS 34 on "Interim Financial
Reporting" and should be read in conjunction with the annual financial statements for the year ended 31 March 2017.
The presentation and classification of the consolidated financial statements of the previous periods have been amended where relevant, for better presentation and to be
comparable with those of current period.
United Motors Lanka PLC divested its entire investment in joint venture, TVS Lanka (Pvt) Ltd, pursuant to the share purchase agreement (SPA) entered into between the
Company (UML) and TV Sundaram Iyengar & Sons (Pvt) Ltd India, on 28 March 2018.
6
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
NOTES TO THE INTERIM FINANCIAL STATEMENTS (contd.)
4.3 Profit on disposal of joint venture
Group Company
Rs.'000 Rs.'000
Total consideration received 1,000,000 1,000,000
Investment in joint venture - (173,545)
Group's share of net assets recognised up to the date of divestment (918,032) -
110 -
Profit on disposal of investment in joint venture 82,078 826,455
5. Approval of financial statements
6. Revaluation of Land
7. Operating segments
The business segments of the Group are highlighted in the table below:
Reportable segment
Spare parts
Vehicles
Repairs & services
Equipment & machinery
Tyres
Lubricant & other services
8. Contingencies, capital and other commitments
9. Events after the reporting period
Dividends on ordinary shares
10. Related party transactions
10.1 Transactions with the parent company
Year Year
ended ended
31.03.2018 31.03.2017
Rs.'000s Rs.'000s
Repairs & services provided 1,285 520
Sale of spare parts 52 -
Services obtained - 68
Sale of brand new passenger vehicles, commercial
vehicles, special purpose vehicles, pre-owned
passenger vehicles, and motor bikes.
Repairs and servicing of vehicles
Sale of heavy equipment & machinery
Sale of tyres
Sale of lubricant & hiring of vehicles
The Group / Company has capital commitments amounting to Rs. 265,984,615 in relation to ERP system implementation (SAP) out of which the Company has spent
Rs.109,149,643 up to 31 March 2018.
There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the annual report 2016 / 2017 other than what has
been disclosed above.
After satisfying the solvency test, in accordance with Section 57 of the Companies Act, No.07 of 2007, the Board of Directors recommended a final dividend of Rs. 1.50 per
share for the year ended 31 March 2018 amounting to Rs. 151,350,939 which is to be approved at the forth coming Annual General Meeting. In accordance with LKAS 10 -
“Events after the reporting period” this dividend was not recognised as a liability as at 31 March 2018.
Subsequent to the reporting date, no circumstances have arisen, which would require adjustments or disclosures in the financial statements other than those disclosed
above.
Transaction type
Sale of spare parts
28.03.2018
Reversal of remaining unrealised profits
These consolidated interim financial statements for the year ended 31 March 2018 were authorized for issue by the Board of Directors on 14 May 2018.
Freehold land is initially recognized at cost at the time of acquisition and subsequently measured at fair value at the next valuation. Freehold land of the Group is revalued to
ensure that the carrying amounts do not differ materially from the fair values at the reporting date. The last revaluation was performed as at 31 March 2015. Considering the
significant increase in the fair value of land, United Motors Lanka PLC revalued its land as at 8 November 2017. The effect of such fair value adjustment is incorporated in
these consolidated financial statements.
As per the Inland Revenue Act No 24 of 2017, which came into effect from 1 April 2018, capital gains on realization of investment assets are taxed at the rate of 10%. The
company identified land portfolio of the company as an asset held as part of an investment due to the nature of business and tax opinion received from our tax consultants.
According to the transitional provisions, assets acquired prior to 30.09.2017, the cost of the asset is deemed to be the market value of such asset as at 30.09.2017. Since
the company revalued land on 8th November 2017 and there is no further increases recognized in financial statements thereafter, deferred tax has not been provided in the
financial statements for the year ended 31.3.2018.
An operating segment is a distinguishable component of the Group / Company that is engaged either in providing products or services (business segment), or in providing
products or services within a particular economic environment (geographical segment), which is subject to risk and rewards that are different from those of other segments.
Segmentation has been determined based on the Group's management and internal reporting structure. Segment Information is based on the primary format representing
the industry segments of the Company and the Group. The Group has six reportable segments whilst the Company has four.
Nature of business
7
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
NOTES TO THE INTERIM FINANCIAL STATEMENTS (contd.)
10.2 Transactions with subsidiaries
Year Year
ended ended
31.03.2018 31.03.2017Rs.'000s Rs.'000s
Sale of goods 29,034 4,770
Purchase of goods 17,202 56,991
Repairs and services provided 113,734 93,894
Expenses incurred 51,742 46,836
Reimbursement of expenses 2,825 2,462
Hiring income received 1,514 1,668
Hiring rentals paid for vehicles 34,679 50,229
Interest received 24,448 750
Loans granted 7,036,000 1,096,795
Loan settlements 7,036,000 1,096,795
Rentals paid for premises occupied 90,949 82,681
Indent commission paid - 3,370
Rentals received for premises occupied 30,620 23,869
10.3 Transactions with equity accounted investee
Year Year
ended ended
31.03.2018 31.03.2017Rs.'000s Rs.'000s
Sale of goods 13,980 -
Purchase of goods 1,740 448
Repairs & services provided 138 721
Repairs & services obtained 437 432
Expenses incurred 5,824 7,630
Income on legal services 427 27
Reimbursement of expenses 288 -
Rentals received for premises occupied 1,826 1,660
10.4 Transactions with other related entities of parent company
Transaction type Year Year
ended ended
31.03.2018 31.03.2017
Rs.'000s Rs.'000s
Foodbuzz (Pvt) Ltd Repairs & services
provided440 280
Sale of vehicle 3,800 3,925
Services obtained - 70
10.5
10.6
10.7 Non-recurrent related party transactions
The Company entered into the non-recurrent related party transactions for the year ended 31 March 2018 as follows.
Non-recurrent related party transactions that require immediate market disclosure
Related party Transaction Transaction date Transaction
value Rs.'000
Aggregate value
Rs.'000
The rationale
for entering
into the
Terms of
transaction
As a % of equity As a % of
total assets
TV Sundaram Iyengar & Sons (Pvt) Ltd India Pursuant to the share
purchase agreement
entered into between
UML & TV Sundram
Iyengar & Sons (Pvt)
Ltd India, UML
disposed its entire
shareholding in TVS
Lanka (Pvt) Ltd.
28th
March 2018 1,000,000 1,000,000 9% 8% To focus
more on the
four wheeler
businesses
and other new
ventures and
to be in line
with overall
group
strategy.
To dispose 17.5
Mn shares at a
total
consideration of
Rs.1 Billion.
11. Share information
11.1 Stated capital
Stated capital is represented by number of shares in issue as given below:
As at 31.03.2018 31.03.2017
Ordinary shares 100,900,626 100,900,626
11.2 Public shareholding
As at 31.03.2018 31.03.2017
Number of public shareholders 3,897 4,039
Number of shares held by the public 26,862,689 27,095,541
Percentage of shares held by the public 26.62% 26.85%
Transaction type
Company
Related company receivables and payables are unsecured, interest free and have no fixed repayment terms.
The subsidiary companies utilise certain facilities of the Company free of charge and part of the accounting, IT and administrative functions of the subsidiary companies are
also performed by the Company for which no charges are made.
Aggregate value for non
recurrent RPTs entered into
during the financial year
Transaction type
8
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
NOTES TO THE INTERIM FINANCIAL STATEMENTS (contd.)
11.3 Directors' shareholding
The number of shares held by the Board of Directors are as follows:
As at 31.03.2018 31.03.2017
Mr. Sunil G. Wijesinha - -
Mr. Chanaka Yatawara 1,275,885 1,270,385
Mr. Ananda Atukorala 3,000 3,000
Ms. Hiroshini Fernando - -
Mr. Ramesh Yaseen 10,620 10,620
Prof. Malik Ranasinghe - -
Mr. Stuart Chapman - -
Mr. Hiroyasu Inoue - -
Mr. Aashiq Lafir (Resigned w.e.f. 31.03.2018) 14,224 14,224
1,303,729 1,298,229
11.4 Twenty largest shareholders of the Company are as follows:
As at
Number of Number of
shares % shares %
R I L Property PLC 51,459,320 51.00 - -
Ms. R. R. Yaseen 10,767,210 10.67 10,767,210 10.67
Mr. M. A. Yaseen 10,521,402 10.43 61,750,266 61.20
Mrs. S. M. Chrysostom 6,945,471 6.88 6,945,471 6.88
Mitsubishi Motors Corporation 4,937,142 4.89 4,937,142 4.89
Sterling Holdings (Private) Limited 2,690,441 2.67 - -
Mr. Chanaka Yatawara 1,275,885 1.26 1,270,385 1.26
Capital Development & Investment Company PLC - A/C No. 2 604,209 0.60 604,209 0.60
Bank of Ceylon Account No. 1 404,478 0.40 404,478 0.40
Mr. A. M. Weerasinghe 301,880 0.30 301,880 0.30
Deutsche Bank AG as Trustee to Candor Opportunities Fund 250,000 0.25 250,000 0.25
Mr. S. D. Yaseen 243,300 0.24 243,300 0.24
Seylan Bank PLC / Lasantha Chandika Ranaweera Pathirana 203,751 0.20 195,037 0.19
Mr. J. A. Yaseen 156,177 0.15 156,177 0.15
Mr. P. Rathnayaka 156,000 0.15 156,000 0.15
Mercantile Investments and Finance PLC 150,000 0.15 150,000 0.15
Akbar Brothers (Pvt) Ltd A/C No. 1 136,648 0.14 136,648 0.14
Andaradeniya Estate (Pvt) Limited 125,000 0.12 - -
Mr. M. Anndreino Yaseen 119,430 0.12 - -
Mr. V. A. Yaseen 119,427 0.12 - -
*Others (shareholders under 20 largest shareholders as at 31 March 2017) - - 1,760,121 1.73
* Comparative shareholding as at 31 March 2017 of the twenty largest shareholders as at 31 March 2018.Please refer 11.4.1 for details
11.4.1 Shareholders Included in the Twenty Largest Shareholding as at 31 March 2017
Number of
shares %
Mr. H.A. Van Starrex 881,919 0.87
Deutsche Bank AG as Trustee to Candor Growth Fund 346,594 0.34
Deutsche Bank AG as Trustee to Amana Candor Sharia Fund 225,000 0.22
Waldock Mackenzie Ltd / Hi -Line Trading (Pvt) Ltd 166,371 0.16
Bank of Ceylon A/C NDB Wealth Growth Fund 140,237 0.14
1,760,121 1.73
11.5 Earnings per share (EPS)
11.6 Net assets per share
Net assets per share has been calculated for all the periods based on the number of shares in issue as at the current period end.
11.7 Market price per share
For the quarter ended 31 March 2018 2017
Rs. Rs.
Highest price 80.40 89.00
Lowest price 74.00 76.10
Closing price 76.00 78.00
31.03.2018 31.03.2017
31.03.2017
Earnings per share has been calculated for all the periods based on the number of shares in issue as at the current period end.
9
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
SEGMENT INFORMATION
Group
In Rs.'000 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited
Revenue
External - Sales 1,640,442 1,765,449 11,107,286 14,283,056 - - 43,020 - 206,714 241,113 820,979 837,920 13,818,441 17,127,538
- Services / commission - - 174,102 48,239 723,604 749,596 - - - - - - 897,706 797,835
Total revenue 1,640,442 1,765,449 11,281,388 14,331,295 723,604 749,596 43,020 - 206,714 241,113 820,979 837,920 14,716,147 17,925,373
Segment results 630,592 654,979 810,766 1,071,877 30,784 128,917 (13,719) - 23,026 33,634 82,738 141,044 1,564,187 2,030,451
Unallocated income 182,693 100,022
Unallocated expenses (669,533) (570,641)
Profit from operations before finance cost 1,077,347 1,559,832
Net finance cost (348,501) (197,257)
Profit from operations 728,846 1,362,575
Share of profit of equity accounted investee (net of income tax) 137,612 76,027
Profit before income tax expense 866,458 1,438,602
Income tax expenses (197,558) (312,495)
Profit from ordinary activities 668,900 1,126,107
Employee benefit plan actuarial gains / (losses) (11,645) 7,691
Gain from revaluation of land 1,633,673 -
Deferred tax on actuarial gains / losses on defined benefit obligation 3,008 (1,880)
Equity accounted investee - share of OCI (2,157) 2,420
Net change in fair value of available for sale financial assets 19,131 2,219
Total comprehensive income attributable to equity holders of the parent 2,310,910 1,136,557
Segment assets 1,771,719 2,329,250 10,946,665 10,039,129 524,939 399,644 94,251 - 220,078 239,228 861,866 687,538 14,419,518 13,694,789
Unallocated assets 2,470,982 3,227,957
Total assets 1,771,719 2,329,250 10,946,665 10,039,129 524,939 399,644 94,251 - 220,078 239,228 861,866 687,538 16,890,500 16,922,746
Segment liabilities 43,267 129,748 372,287 444,332 5,885 8,000 8,131 - 6,267 9,237 7,676 26,846 443,513 618,163
Unallocated liabilities 3,746,860 5,562,214
Total liabilities 43,267 129,748 372,287 444,332 5,885 8,000 8,131 - 6,267 9,237 7,676 26,846 4,190,373 6,180,377
Segment capital expenditure - allocated 45,881 56,290 315,524 456,950 20,238 23,901 1,203 - 5,781 7,688 22,962 26,717 411,589 571,546
Depreciation & amortisation - allocated 18,936 13,203 130,225 107,177 8,353 5,606 497 - 2,386 1,803 9,477 6,267 169,874 134,056
Non cash expenses / (income) 27,804 28,522 53,232 23,054 2,118 (153) - - 2,214 (2,800) 7,925 2,168 93,294 50,791
Notes:
All amounts are in Rs.'000s, unless otherwise stated.
Figures in brackets indicate deductions.
TotalSpare parts Vehicles Repairs & services Equipment & machinery Tyres Lubricant & other services
10
UNITED MOTORS LANKA PLC
INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
SEGMENT INFORMATION
Company
In Rs.'000 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited Un-audited Audited
Revenue
External - Sales 1,627,269 1,742,062 5,614,521 6,213,471 - - 822,728 842,689 8,064,518 8,798,222
- Services / commission - - 175,073 44,598 794,898 793,692 1,485 1,461 971,456 839,751
Total revenue 1,627,269 1,742,062 5,789,594 6,258,069 794,898 793,692 824,213 844,150 9,035,974 9,637,973
Segment results 627,621 651,548 615,595 548,120 102,081 173,014 91,967 168,296 1,437,264 1,540,978
Unallocated income 909,445 117,381
Unallocated expenses (738,831) (633,989)
Profit from operations before finance cost 1,607,878 1,024,370
Net finance income 60,334 152,289
Change in fair value of investment property - 111,020
Profit before income tax expense 1,668,212 1,287,679
Income tax expenses (211,515) (220,869)
Profit from ordinary activities 1,456,697 1,066,810
Employee benefit plan actuarial (losses) / gains (10,260) 5,596
Gain from revaluation of land 1,320,533 -
Deferred tax on actuarial gains / (losses) on defined benefit obligation 2,623 (1,262)
Net change in fair value of available for sale financial assets 11,424 (808)
Total comprehensive income attributable to equity holders of the parent 2,781,017 1,070,336
Segment assets 2,031,728 1,539,371 7,042,724 6,861,696 524,939 399,644 1,097,992 876,173 10,697,383 9,676,884
Unallocated assets 2,347,073 2,547,611
Total assets 2,031,728 1,539,371 7,042,724 6,861,696 524,939 399,644 1,097,992 876,173 13,044,456 12,224,495
Segment liabilities 42,205 99,573 299,807 388,168 5,885 8,000 7,676 26,846 355,573 522,587
Unallocated liabilities 993,303 2,434,193
Total liabilities 42,205 99,573 299,807 388,168 5,885 8,000 7,676 26,846 1,348,876 2,956,780
Segment capital expenditure - allocated 60,673 96,840 215,865 347,881 29,638 44,121 30,730 46,926 336,906 535,768
Depreciation & amortisation - allocated 24,727 17,225 87,974 61,880 12,079 7,848 12,524 8,349 137,304 95,302
Non cash expenses / (income) 27,999 27,814 13,119 732 2,118 (153) 7,362 1,145 50,598 29,538
Notes:
All amounts are in Rs.'000s, unless otherwise stated.
Figures in brackets indicate deductions.
Lubricant & other services TotalSpare parts Vehicles Repairs & services
11