INVESTING
FOR GROWTH
LAUGFS GAS PLC INTERIM REPORT FOR THE QUARTER ENDED 31 MARCH 2018
CHAIRMAN’S MESSAGE
Dear Stakeholder,
At this very important juncture, I would like to elaborate the fact that LAUGFS Gas PLC underwent a restructuring
process on 31st March 2018 where it’s former subsidiaries namely LAUGFS Leisure Ltd-engaged in the leisure sector,
LAUGFS Power Ltd-engaged in the renewable energy sector and LAUGFS Eco Sri Ltd-engaged in vehicle emission
testing, was vested with the shareholders of LAUGFS Gas PLC by way of a scheme of arrangement as per section 256 of
the Companies Act No. 7 of 2007, whereby the LAUGFS Gas group transformed itself into a pure play energy Company
in order to focus intensely on its core business operations.
Whilst initial approval to proceed with this process was granted by the Commercial High Court under the case bearing
number HC (Civil) 01/2018/CO, the Company managed to obtain requisite shareholder approval for the same at its
Extraordinary General Meeting held on 20th March 2018, whereby the final order approving the process by the
Commercial High Court was granted on 23rd March 2018. Accordingly LAUGFS Leisure Ltd, LAUGFS Power Ltd and
LAUGFS Eco Sri Ltd were vested with the shareholders of LAUGFS Gas PLC with effect from 31st March 2018.
As a result of this restructuring process, the stated capital of the Company was also reduced to Rs. 1 billion after
following all requisite formalities. The aforesaid restructuring have been incorporated in the financial statements thus
being circulated.
The restructuring process conducted successfully will enable us to integrate effectively the entities under the purview
of Laugfs Gas PLC, involved with the LP Gas value chain consist of sourcing, supply, trading, storage, shipping and the
downstream operations in Sri-Lanka and Bangladesh at present. Besides the integrated operations of the LPG value
chain provides a unique opportunity for the company to expand its business operations beyond our borders in the
near future.
(Sgd).
W. K. H. Wegapitiya
Chairman/Group CEO
30th May 2018
1
LAUGFS Gas PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSSFor the Quarter ended 31 March 2018
Unaudited Audited
2018 2017 Change 2018 2017 Change
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %
Revenue 5,367,699 4,524,799 19 21,354,621 16,270,541 31
Cost of Sales (4,835,285) (4,262,368) 13 (19,210,054) (13,468,756) 43
Gross Profit 532,414 262,431 103 2,144,568 2,801,786 (23)
Other Operating Income 119,033 92,883 28 468,028 373,665 25
Selling and Distribution Expenses (250,836) (333,221) (25) (1,377,165) (1,036,524) 33
Administrative Expenses (498,550) (581,207) (14) (1,226,455) (1,380,235) (11)
Foreign Currency Exchange Gains/(Losses) 2,532 (26,411) 110 27,383 (58,394) 147
Operating Profit/(Loss) (95,406) (585,526) (84) 36,359 700,298 (95)
Finance Costs (409,099) (476,656) (14) (1,767,153) (1,289,307) 37
Fair Value Gain on Investment Properties 106,443 38,316 178 106,443 38,316 178
Finance Income 9,375 11,834 (21) 45,408 56,546 (20)
Loss Before Tax (388,686) (1,012,032) (62) (1,578,942) (494,148) 220
Income Tax Expense (106,370) 276,436 138 (49,135) (128,613) (62)
(495,056) (735,597) (33) (1,628,077) (622,761) 161
Discontinued Operations:
105,418 (12,009) 978 296,263 (4,554) 6,606
Loss for the Period (389,638) (747,606) (48) (1,331,813) (627,315) 112
Attributable to:
Equity Holders of the Parent (389,638) (747,606) (48) (1,331,813) (638,026) 109
Non-Controlling Interests - - - - 10,712 (100)
(389,638) (747,606) (48) (1,331,813) (627,315) 112
Earnings Per Share :
Basic/Diluted (1.01) (1.93) (48) (3.44) (1.65) 109
Attributable to Ordinary Equity Holders of the Parent
Earnings Per Share for Continuing Operations
Basic/Diluted (1.28) (1.90) (33) (4.21) (1.64) 157
Attributable to Ordinary Equity Holders of the Parent
Note : Change % column represents the percentage change in current period's results compared to previous period
The above figures are subject to audit.
Figures in brackets indicate deductions.
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
Profit/(Loss) after Tax for the Period from
Discontinued Operations
Quarter ended 31 March
Unaudited
Year ended 31 March
Loss for the Period from Continuing
Operations
2
LAUGFS Gas PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the Quarter ended 31 March 2018
Unaudited Audited
2018 2017 Change 2018 2017 Change
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %
Loss for the Period (389,638) (747,606) (48) (1,331,813) (627,315) 112
Other Comprehensive Income
Gain /(Loss) on Available for Sale Financial Assets 4,456 (22,546) 120 12,803 2,913 340
Reclassification to Profit or Loss as Impairment on Available for
Sale Financial Assets 1,675 122,300 (99) 181,675 122,300 49
Exchange Differences in Translation of Foreign Operations 15,420 5,097 203 (62,873) 118,427 (153)
Surplus on Revaluation of Assets Transfered to Investment
Properties 18,448 136,520 (86) 18,448 136,520 (86)
Income Tax Effect (15,662) (23,961) (35) (15,662) (23,961) (35)
24,336 217,410 (89) 134,391 356,199 (62)
Actuarial Gains/(Losses) on Defined Benefit Plans 41,318 20,055 106 44,045 20,055 120
Income Tax Effect (12,609) (6,178) 104 (13,154) (6,178) 113
28,709 13,877 107 30,891 13,877 123
Other Comprehensive Income/(Loss) for the Period, Net of Tax 53,045 231,287 (77) 165,282 370,076 55
Total Comprehensive Income/(Loss) for the Period Net of Tax (336,594) (516,319) (35) (1,166,532) (257,238) 353
Attributable to:
Equity Holders of the Parent (336,594) (516,319) (35) (1,166,532) (266,593) 338
Non-Controlling Interests - - - - 9,355 (100)
(336,594) (516,319) (35) (1,166,532) (257,238) 353
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
Other Comprehensive Income not to be Reclassified to Profit or Loss
in Subsequent Periods (Net of Tax) :
Net Other Comprehensive Income not to be Reclassified to Profit
or Loss in Subsequent Periods
Unaudited
Quarter ended 31 March Year ended 31 March
Other Comprehensive Income to be Reclassified to Profit or Loss in
Subsequent Periods (Net of Tax) :
Net Other Comprehensive Income to be Reclassified to Profit or
Loss in Subsequent Periods
3
LAUGFS Gas PLC 0.00 0.00
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 31 March 2018
Unaudited Audited
As at As at
31.03.2018 31.03.2017
ASSETS Rs.'000 Rs.'000
Non-Current Assets
Property, Plant and Equipment 17,070,443 22,625,858
Investment Properties 2,507,307 2,270,800
Intangible Assets 2,343,401 3,088,813
Prepayments 6,292 105,751
Deferred Tax Assets 208 17,394
Other Non-Current Financial Assets 137,634 122,828
22,065,284 28,231,444
Current Assets
Inventories 1,563,784 1,428,210
Trade and Other Receivables 4,470,102 3,822,731
Prepayments 69,802 85,250
Income Tax Recoverable 266,230 205,100
Other Current Financial Assets 2,678 2,692
Cash and Short-Term Deposits 2,957,223 2,058,564
9,329,819 7,602,549
Total Assets 31,395,103 35,833,993
EQUITY AND LIABILITIES
Capital and Reserves
Stated Capital 1,000,000 3,285,000
Available for Sale Reserve 722 (193,756)
Revaluation Reserve 86,842 112,559
Foreign Currency Translation Reserve 123,987 186,807
Retained Earnings (156,053) 4,253,763
Equity attributable to Equity Holders of the Parent 1,055,499 7,644,374
Non-Controlling Interests 386,184 -
Total Equity 1,441,683 7,644,374
Non-Current Liabilities
Interest Bearing Loans and Borrowings 13,486,083 15,443,240
Deferred Tax Liabilities 649,945 689,989
Deferred Income 810,972 670,652
Employee Benefit Liability 174,391 265,104
Refundable Deposits 2,364,097 2,092,151
17,485,487 19,161,137
Current Liabilities
Trade and Other Payables 4,183,661 3,801,627
Deferred Income 15,711 14,572
Refundable Deposits 252,412 222,495
Income Tax Payable 557,627 653,362
Interest Bearing Loans and Borrowings 7,458,522 4,336,425
12,467,933 9,028,482
Total Equity and Liabilities 31,395,103 35,833,993
Net Assets Per Share (Rs.) 2.73 19.75
Note: The above figures are subject to audit.
I certify that these financial statements are in compliance with the requirements of the Companies Act No :07 of 2007.
(Sgd).
Dilshan Perera
Finance Director
(Sgd). (Sgd).
W.K.H.Wegapitiya U.K.Thilak De Silva
Director Director
25 May 2018
Colombo
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the
Board by:
4
LAUGFS Gas PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the Year ended 31 March 2018
Stated Retained Available for Revaluation Foreign Currency Total Non-Controlling Total
Capital Earnings Sale Reserve Reserve Translation Reserve Interests Equity
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
As at 01 April 2016 3,285,000 5,395,273 (318,968) - 48,439 8,409,744 1,195,843.60 9,605,588
Profit/(Loss) for the Year - (638,026) - - - (638,026) 10,712 (627,315)
Other Comprehensive Income - 13,877 125,213 112,559 119,096 370,745 (1,357) 369,388
Total Comprehensive Income - (624,149) 125,213 112,559 119,096 (267,282) 9,355 (257,927)
Dividend Paid (Final 2015/2016) - (387,000) - - - (387,000) - (387,000)
Deferred Tax Liability Reversal during the Year - 25,473 - - - 25,473 290 25,762
- (25,535) - - - (25,535) - (25,535)
Acquisition of Non-Controlling Interest - (130,298) - - 19,273 (111,025) (1,205,488) (1,316,513)
As at 31 March 2017 3,285,000 4,253,763 (193,756) 112,559 186,807 7,644,374 - 7,644,374
Loss for the Year - (1,331,813) - - - (1,331,813) - (1,331,813)
Other Comprehensive Income - 30,891 194,478 2,785 (62,873) 165,282 - 165,282
Total Comprehensive Income - (1,300,922) 194,478 2,785 (62,873) (1,166,532) - (1,166,532)
Deferred Tax Liability Reversal during the Year - (119,628) - - - (119,628) - (119,628)
Group Resructure Adjustments (2,285,000) (2,989,266) - (28,502) 53 (5,302,716) 386,184 (4,916,532)
As at 31 March 2018 1,000,000 (156,053) 722 86,842 123,987 1,055,498 386,184 1,441,682
Note : The above figures are subject to audit.
Figures in brackets indicates deductions.
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
Attributable to Equity Holders of the Parent
Reversal of Surplus on Revaluation for Disposal of Property,
Plant & Equipment
5
LAUGFS Gas PLC
CONSOLIDATED STATEMENT OF CASH FLOWSFor the Year ended 31 March 2018
Unaudited Audited
2018 2017
Rs.'000 Rs.'000
Cash Flows Generated from/(Used in) Operating Activities
Cash Flows from Operating Activities
Loss Before Tax from Continuing Operations (1,578,942) (494,148)
Profit Before Tax from Discontinued Operations 400,143 110,129
Loss Before Tax (1,178,799) (384,019)
Non-Cash Adjustment to Reconcile Profit Before Tax to Net Cash Flows:
Amortization of Intangible Assets 24,979 23,704
Decrease in Fair Value of Quoted Equity Securities 14 (420)
Depreciation of Property, Plant and Equipment 1,298,452 969,804
Fair Value Gain on Investment Properties (106,443) (38,316)
Finance Costs 1,767,153 1,287,802
Finance Income (45,408) (56,546)
Dividend Income (4,360) (3,073)
Provision for contribution to workers' profit participation fund 18,031 28,879
Provision for Employee Benefit Liability 67,977 64,028
Transfer of Employee Benefit Liability (4,934) -
(Profit)/Loss on Disposal of Property, Plant and Equipment 28,121 (8,495)
Exchange Differences 88,318 104,846
Operating Profit Before Working Capital Changes 1,953,100 1,988,196
Working Capital Adjustments:
(Increase)/Decrease in Inventories (253,319) (511,397)
(Increase)/Decrease in Trade and Other Receivables and Prepayments (3,044,806) (962,971)
Increase/(Decrease) in Trade and Other Payables 3,286,917 1,978,559
Increase/(Decrease) in Deferred Income 141,458 153,214
Cash Generated from Operating Activities 2,083,351 2,645,600
Employee Benefit Liability Costs Paid (42,941) (82,092)
Finance Costs Paid (1,585,477) (1,165,502)
Income Tax Paid (459,668) (259,488)
Refund/Transfers of Deposits (593,163) (498,560)
Refundable Deposits Received 896,681 728,654
Net Cash Flows Generated from / (Used in) Operating Activities 298,783 1,368,612
Cash Flows from / (Used in) Investing Activities
Acquisition of Intangible Assets (12,220) (1,232)
Acquisition of Property, Plant and Equipment (6,066,058) (9,299,557)
Acquisition of Investment Properties (11,957) (73,684)
Dividends Received 4,304 2,450
Investments in Quoted Equity Securities (2,004) -
Proceeds from Disposal of Property, Plant and Equipment 14,199 41,544
Net Cash and Cash Equivalent Adjustment Related to Group Restructuring 227,033 -
Net Cash Flows Used in Investing Activities (5,846,703) (9,330,479)
Cash Flows from / (Used in) Financing Activities
Proceeds from Interest Bearing Loans and Borrowings 22,420,686 22,853,480
Dividend Paid - (387,000)
Finance Income 45,408 56,546
Capital Repayment under Finance Lease Liabilities (7,258) (6,593)
Acquisition of Non-Controlling Interest - (1,316,513)
Repayment of Interest Bearing Loans and Borrowings (16,056,019) (15,210,152)
Net Cash Flows From/ (Used) in Financing Activities 6,402,817 5,989,767
Net Increase/(Decrease) in Cash and Cash Equivalent 854,897 (1,972,100)
Cash and Cash Equivalent at the Beginning of the Year 1,416,540 3,388,639
Cash and Cash Equivalent at the End of the Year 2,271,437 1,416,540
Note : The above figures are subject to audit.
Figures in brackets indicate deductions.
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
6
LAUGFS Gas PLC
COMPANY STATEMENT OF PROFIT OR LOSSFor the Quarter ended 31 March 2018
Unaudited Audited
2018 2017 Change 2018 2017 Change
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %
Revenue 3,432,464 2,727,372 26 12,834,119 10,386,886 24
Cost of Sales (3,263,632) (2,853,400) 14 (12,258,443) (9,244,996) 33
Gross Profit/(Loss) 168,833 (126,028) 234 575,676 1,141,891 (50)
Other Operating Income 348,137 266,671 31 1,003,102 1,156,919 (13)
Selling and Distribution Expenses (174,801) (252,780) (31) (898,517) (735,761) 22
Administrative Expenses (178,042) (367,870) (52) (576,472) (792,919) (27)
Foreign Currency Exchange Gains/(Losses) 12,939 (7,759) 267 78,138 (24,717) 416
Operating Profit/(Loss) 177,067 (487,766) (136) 181,927 745,412 (76)
Finance Costs (388,269) (463,316) (16) (1,682,219) (1,225,388) 37
Fair Value Gain on Investment Properties 43,000 26,000 65 43,000 26,000 65
Finance Income 1,438 1,115 29 5,905 5,654 4
Loss Before Tax (166,764) (923,967) (82) (1,451,387) (448,322) 224
Income Tax Expense (81,347) 296,783 (127) 180,484 189,194 (5)
Loss for the Period (248,111) (627,184) (60) (1,270,903) (259,128) 390
Attributable to:
Equity Holders of the Parent (248,111) (627,184) (60) (1,270,903) (259,128) 390
Non-Controlling Interests - - - - - -
(248,111) (627,184) (60) (1,270,903) (259,128) 390
Note : Change % column represents the percentage change in current period's results compared to previous period
The above figures are subject to audit.
Figures in brackets indicates deductions.
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
Quarter ended 31 March
Unaudited
Year ended 31 March
7
LAUGFS Gas PLC
COMPANY STATEMENT OF COMPREHENSIVE INCOMEFor the Quarter ended 31 March 2018
Unaudited Audited
2018 2017 Change 2018 2017 Change
Rs.'000 Rs.'000 % Rs.'000 Rs.'000 %
Loss for the Period (248,111) (627,184) (60) (1,270,903) (259,128) 390
Other Comprehensive Income
Gain/(Loss) on Available for Sale Financial Assets 4,456 (22,546) 120 12,803 2,913 340
Reclassification to Profit or Loss as Impairment on Available for Sale
Financial Assets 1,675 122,300 (99) 181,675 122,300 49
6,131 99,754 (94) 194,478 125,213 55
Actuarial Gains/(Losses) on Defined Benefit Plans 5,161 11,123 (54) 7,889 11,123 (29)
Income Tax Effect (1,032) (2,225) (54) (1,578) (2,225) (29)
4,129 8,898 (54) 6,311 8,898 (29)
Other Comprehensive Income/(Loss) for the Period, Net of Tax 10,260 108,652 (91) 200,789 134,111 50
Total Comprehensive Income/(Loss) for the Period Net of Tax (237,851) (518,532) (54) (1,070,115) (125,018) 756
Attributable to:
Equity Holders of the Parent (237,851) (518,532) (54) (1,070,115) (125,018) 756
(237,851) (518,532) (54) (1,070,115) (125,018) 756
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
Other Comprehensive Income not to be Reclassified to Profit or Loss
in Subsequent Periods (Net of Tax) :
Net Other Comprehensive Income not to be Reclassified to Profit
or Loss in Subsequent Periods
Quarter ended 31 March
Unaudited
Year ended 31 March
Other Comprehensive Income to be Reclassified to Profit or Loss in
Subsequent Periods (Net of Tax) :
Net Other Comprehensive Income to be Reclassified to Profit or
Loss in Subsequent Periods
8
LAUGFS Gas PLC (0.00) 0.01
COMPANY STATEMENT OF FINANCIAL POSITIONAs at 31 March 2018
Unaudited Audited
As at As at
31.03.2018 31.03.2017
Rs.'000 Rs.'000
ASSETS
Non-Current Assets
Property, Plant and Equipment 7,586,202 6,629,727
Investment Properties 804,500 761,500
Intangible Assets 12,364 25,177
Investments in Subsidiaries 6,874,035 11,850,337
Other Non-Current Financial Assets 137,634 122,828
15,414,736 19,389,569
Current Assets
Inventories 771,276 569,521
Trade and Other Receivables 3,381,684 3,390,784
Prepayments 34,073 18,879
Income Tax Recoverable 265,237 202,210
Other Current Financial Assets 2,678 2,692
Cash and Short-Term Deposits 122,949 287,878
4,577,898 4,471,965
Total Assets 19,992,634 23,861,534
EQUITY AND LIABILITIES
Capital and Reserves
Stated Capital 1,000,000 3,285,000
Available for Sale Reserve 722 (193,756)
Retained Earnings (406,608) 4,215,871
Equity attributable to Equity Holders of the Parent 594,114 7,307,115
Total Equity 594,114 7,307,115
Non-Current Liabilities
Interest Bearing Loans and Borrowings 6,245,291 8,120,292
Deferred Tax Liabilities 451,744 592,349
Deferred Income 810,972 670,652
Employee Benefit Liability 54,274 59,875
Refundable Deposits 2,271,709 2,002,455
9,833,990 11,445,623
Current Liabilities
Trade and Other Payables 2,429,679 1,398,999
Deferred Income 15,711 14,572
Refundable Deposits 252,412 222,495
Interest Bearing Loans and Borrowings 6,866,727 3,472,730
9,564,529 5,108,796
Total Equity and Liabilities 19,992,634 23,861,534
Net Assets Per Share (Rs.) 1.54 18.88
Note: The above figures are subject to audit.
I certify that these financial statements are in compliance with the requirements of the Companies Act No.07 of 2007.
(Sgd).
Dilshan Perera
Finance Director
(Sgd). (Sgd).
W.K.H.Wegapitiya U.K.Thilak De Silva
Director Director
25 May 2018
Colombo
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board
by:
9
LAUGFS Gas PLC
COMPANY STATEMENT OF CHANGES IN EQUITY For the Year ended 31 March 2018
Stated Retained Available for Total
Capital Earnings Sale Reserve Equity
Rs.'000 Rs.'000 Rs.'000 Rs.'000
As at 01 April 2016 3,285,000 4,862,981 (318,968) 7,829,013
Loss for the Year - (259,128) - (259,128)
Other Comprehensive Income - 8,898 125,213 134,111
Total Comprehensive Income - (250,230) 125,213 (125,018)
Dividend Paid (Final 2015/2016) - (387,000) - (387,000)
Deferred Tax Liability Reversal during the Year - 15,656 - 15,656
- (25,535) - (25,535)
As at 31 March 2017 3,285,000 4,215,871 (193,756) 7,307,115
Loss for the Year - (1,270,903) - (1,270,903)
Other Comprehensive Income - 6,311 194,478 200,789
Total Comprehensive Income - (1,264,593) 194,478 (1,070,115)
Deferred Tax Liability Reversal during the Year - (45,454) - (45,454)
Group Resructure Adjustments (2,285,000) (3,312,432) - (5,597,432)
As at 31 March 2018 1,000,000 (406,608) 722 594,114
Note : The above figures are subject to audit.
Figures in brackets indicates deductions.
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
Reversal of Surplus on Revaluation of Disposal of Property, Plant
& Equipment
10
LAUGFS Gas PLC
COMPANY STATEMENT OF CASH FLOWSFor the Year ended 31 March 2018
Unaudited Audited
2018 2017
Rs.'000 Rs.'000
Cash Flows Generated from/(Used in) Operating Activities
Cash Flows from Operating Activities
Loss Before Tax (1,451,387) (448,322)
Non-Cash Adjustment to Reconcile Profit Before Tax to Net Cash Flows:
Amortization of Intangible Assets 13,185 13,587
Decrease in Fair Value of Quoted Equity Securities 14 (420)
Depreciation of Property, Plant and Equipment 459,310 402,324
Fair Value Gain on Investment Properties (43,000) (26,000)
Finance Costs 1,682,219 1,225,388
Finance Income (5,905) (5,654)
Dividend Income (509,152) (771,027)
Provision for Employee Benefit Liability 14,287 14,999
Transfer of Employee Benefit Liability (8,260) -
(Profit)/Loss on Disposal of Property, Plant and Equipment 28,458 (8,341)
Exchange Differences 8,906 43,994
Operating Profit Before Working Capital Changes 188,674 440,528
Working Capital Adjustments:
(Increase)/ Decrease in Inventories (201,755) (58,254)
(Increase)/Decrease in Trade and Other Receivables and Prepayments (6,038) 1,429,518
Increase/ (Decrease) in Trade and Other Payables 726,667 332,734
Increase/ (Decrease) in Deferred Income 141,458 153,214
Cash Generated from / (Used in) Operating Activities 849,006 2,297,739
Employee Benefit Liability Costs Paid (3,739) (6,792)
Finance Costs Paid (1,500,544) (1,103,088)
Income Tax Paid (63,970) (40,287)
Refundable Deposits Received 889,645 715,418
Refund/Transfers of Refundable Deposits (590,474) (492,685)
Net Cash Flows Generated from / (Used in) Operating Activities (420,075) 1,370,305
Cash Flows from / (Used in) Investing Activities
Acquisition of Intangible Assets (373) -
Acquisition of Property, Plant and Equipment (1,453,727) (924,429)
Dividends Received 509,097 770,405
Investments in Quoted Equity Securities (2,004) -
Investments in Subsidiaries (320,000) (6,051,556)
Proceeds from Disposal of Property, Plant and Equipment 9,484 39,334
Net Cash Flows Used in Investing Activities (1,257,522) (6,166,246)
Cash Flows from / (Used in) Financing Activities
Proceeds from Interest Bearing Loans and Borrowings 16,846,917 18,192,373
Dividend Paid - (387,000)
Finance Income 5,905 5,654
Repayment of Interest Bearing Loans and Borrowings (15,438,253) (14,600,699)
Net Cash Flows from /(Used in) Financing Activities 1,414,569 3,210,327
Net Increase/(Decrease) in Cash and Cash Equivalent (263,029) (1,585,614)
Cash and Cash Equivalent at the Beginning of the Year (114,131) 1,471,483
Cash and Cash Equivalent at the End of the Year (377,160) (114,131)
Note : The above figures are subject to audit.
Figures in brackets indicate deductions.
The accounting policies and notes on pages 13 to 17 form an integral part of these financial statements.
11
Operating Segments
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Revenue
External Customers 20,718,434 16,217,974 102,839 52,567 533,348 - - - - - 21,354,621 16,270,541
Inter-Segment 3,449 - 43,564 21,333 775,125 1,188,952 6,573,403 1,965,930 (7,395,542) (3,176,215) - -
Total Revenue 20,721,883 16,217,974 146,403 73,900 1,308,473 1,188,952 6,573,403 1,965,930 (7,395,542) (3,176,215) 21,354,621 16,270,541
Results
Operating Profit 485,693 1,257,744 81,175 57,525 215,766 454,411 (95,226) 1,384 (651,049) (1,070,765) 36,359 700,298
Finance Costs (1,682,219) (1,225,388) (30,713) (19,393) (54,147) (61,570) (3,266) - 3,193 17,044 (1,767,153) (1,289,307)
Fair Value Gain on Investment Properties 43,000 26,000 74,743 12,316 - - - - (11,300) - 106,443 38,316
Finance Income 44,723 42,030 355 134 329 14,382 1 - - - 45,408 56,546
Profit/(Loss) Before Tax (1,108,803) 100,386 125,560 50,581 161,948 407,222 (98,490) 1,384 (659,156) (1,053,722) (1,578,942) (494,148)
Income Tax Expense 48,392 (18,795) (46,758) (6,935) 344 (844) - - (51,113) (102,039) (49,135) (128,613)
Profit/(Loss) for The Year from Continuing Operations (1,060,411) 81,592 78,802 43,646 162,292 406,379 (98,490) 1,384 (710,269) (1,155,761) (1,628,077) (622,761)
Profit/(Loss) for The Year from Discontinued Operations - - - - - - - - 296,263 (4,554) 296,263 (4,554)
Profit/(Loss) for the Year (1,060,411) 81,592 78,802 43,646 162,292 406,379 (98,490) 1,384 (414,006) (1,160,315) (1,331,813) (627,315)
Net Gain/(Loss) on Available for Sale Financial Assets 12,803 2,913 - - - - - - - - 12,803 2,913
Reclassification to Profit or Loss as Impairment on Available
for Sale Financial Assets 181,675 122,300 - - - - - - - - 181,675 122,300
Actuarial Gains/(Losses) on Defined Benefit Plans 36,967 24,331 (130) (330) 1,049 22 - - 6,160 (3,969) 44,045 20,055
Exchange Differences in Translation of Foreign Operations (33,309) 48,085 - - - - 12,647 1,955 (42,211) 68,388 (62,873) 118,427
Surplus on revaluation of asstes transferred to Investment
Properties - - - 158,347 - - - - 18,448 (21,827) 18,448 136,520
Income Tax Effect (11,755) (6,848) (16,481) (27,727) (431) (6) - - (149) 4,442 (28,817) (30,139)
Total Comprehensive Income for the Year Net of Tax (874,030) 272,373 62,190 173,936 162,910 406,394 (85,844) 3,339 (431,759) (1,113,280) (1,166,532) (257,238)
Assets & Liabilities
Total Non-Current Assets 14,815,419 17,975,591 1,884,936 1,803,961 7,646,447 4,506,233 1,320,156 1,320,391 (3,601,673) 2,625,269 22,065,284 28,231,444
Total Current Assets 6,460,889 6,909,245 230,829 248,692 3,161,061 1,501,640 1,341,980 267,122 (1,864,941) (1,324,151) 9,329,819 7,602,549
Total Assets 21,276,309 24,884,836 2,115,765 2,052,653 10,807,509 6,007,873 2,662,136 1,587,513 (5,466,614) 1,301,118 31,395,103 35,833,993
Total Non-Current Liabilities 10,185,365 11,761,793 409,158 317,237 6,898,955 1,930,029 - - (7,991) 5,152,079 17,485,487 19,161,137
Total Current Liabilities 11,218,358 6,733,542 171,566 691,731 1,574,468 1,775,835 1,373,633 213,166 (1,870,091) (385,792) 12,467,933 9,028,482
Total Liabilities 21,403,723 18,495,334 580,724 1,008,968 8,473,424 3,705,863 1,373,633 213,166 (1,878,082) 4,766,287 29,953,421 28,189,619
The above figures are subject to audit.
Figures in brackets indicates deductions.
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Energy Property Development Eliminations/Adjustments GroupTrading
LAUGFS Gas PLC
NOTES TO THE FINANCIAL STATEMENTS
1 Corporate Information
2 Basis of Preparation
3 Group Restructuring
LAUGFS Gas PLC is a public limited liability company incorporated and domiciled in Sri Lanka. Its ordinary voting and non voting shares were
listed on Main Board of Colombo Stock Exchange.
The interim financial statements of the group and company for the Quarter ended 31 March 2018 were authorised for issue by the board of directors
on 25 May 2018.
The Interim financial statements of Laugfs Gas PLC have been prepared in accordance with Sri Lanka Accounting Standards comprising of SLFRS
and LKAS (hereafter referred as "SLFRS") issued by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and accounting policies
set out in the Annual Report for the year ended 31 March 2017.
The interim financial statements have been prepared on a historical cost basis, except for "investment properties", "other non-current financial
assets" and "other current financial assets" which have been measured at fair value.
These interim financial statements have been prepared in accordance with Sri Lanka Accounting Standard LKAS 34 - "Interim Financial
Reporting". They should be read in conjunction with the Annual Report for the year ended 31 March 2017.
The presentation and classification of the financial statements of the previous year have been amended, where relevant, for better presentation and to
be comparable with those of the current period.
“The Company underwent a restructuring process on 31st March 2018 where it’s former subsidiaries namely LAUGFS Leisure Ltd-engaged in the
leisure sector, LAUGFS Power Ltd-engaged in the renewable energy sector and LAUGFS Eco Sri Ltd-engaged in vehicle emission testing, was
vested with the shareholders of LAUGFS Gas PLC by way of a scheme of arrangement as per section 256 of the Companies Act No. 7 of 2007,
whereby the LAUGFS Gas group transformed itself into a pure play energy Company in order to focus intensely on its core business operations.
Whilst initial approval to proceed with this process was granted by the Commercial High Court under the case bearing number HC (Civil)
01/2018/CO, the Company managed to obtain requisite shareholder approval for the same at the Extraordinary General Meeting held on 20th March
2018, whereby the final order approving the process by the Commercial High Court was granted on 23rd March 2018. Accordingly LAUGFS
Leisure Ltd, LAUGFS Power Ltd and LAUGFS Eco Sri Ltd were vested with the shareholders of LAUGFS Gas PLC with effect from 31st March
2018. As a result of this restructuring process the stated capital of the Company was also reduced to Rs. 1 billion after following all requisite
formalities. The aforesaid restructuring have been incorporated in the financial statments thus being circulated”
13
LAUGFS Gas PLC
NOTES TO THE FINANCIAL STATEMENTS
4 Share Information
4.1. Public share holdings
4.2. Directors Share holdings
The number of shares held by the Board of directors are as follows
Ordinary Voting Shares
As at 31-03-2018 31-12-2017
Name of Director
Mr W K H Wegapitiya 1,411,536 1,411,536
Mr U K Thilak De Silva 1,077,897 1,077,897
Mr H A Ariyaratne 3,900 3,900
Mr.C.L.De Alwis. (Passed away on 11 May 2018) 1,000 1,000
Mr.P.M.Kumarasinghe PC. (Resigned on 31 Dec 2017) 4,800 4,800
Mr T K Bandaranayake Nil Nil
Mr. N M Prakash 17,000 17,000
Mr. A R D Perera Nil Nil
Mr. A N Ranasinghe Nil Nil
Ordinary Non Voting Shares
As at 31-03-2018 31-12-2017
Name of Director
Mr W K H Wegapitiya. Nil Nil
Mr U K Thilak De Silva. Nil Nil
Mr H A Ariyaratne. 3,400 3,400
Mr.C.L.De Alwis. (Passed away on 11 May 2018) 500 500
Mr.P.M.Kumarasinghe PC. (Resigned on 31 Dec 2017) Nil Nil
Mr T K Bandaranayake. Nil Nil
Mr. N M Prakash. Nil Nil
Mr. A R D Perera Nil Nil
Mr. A N Ranasinghe Nil Nil
4.3. Chief Executive Officer's Share holdings
Ordinary Voting Shares
As at 31-03-2018 31-12-2017
Name
Mr Ashan De Silva. 12,600 12,600
Ordinary Non Voting Shares
As at 31-03-2018 31-12-2017
Name
Mr Ashan De Silva. 22,500 22,500
Total number of shareholders who hold the public holding as at 31 March 2018 were 9,184 (31 December 2017 -9,346).
The percentage of ordinary voting shares held by the public as at 31 March 2018 were 25.22% (31 December 2017 - 25.22%).
14
LAUGFS Gas PLC
NOTES TO THE FINANCIAL STATEMENTS
4.4 Twenty Largest Shareholders of the company are as follows
Ordinary Voting Shares
As at
Name of Shareholder No.of Shares % No.of Shares %
1 LAUGFS HOLDINGS LIMITED 247,980,050 74.02 246,057,450 73.45
2 EMPLOYEES PROVIDENT FUND 57,897,800 17.28 57,897,800 17.28
3 SEYLAN BANK PLC / CARLINES HOLDINGS (PRIVATE) LIMITED 1,953,696 0.58 2,348,402 0.70
4 AMANABANK PLC/ALMAS ORGANISATION (PVT) LTD 1,547,795 0.46 1,259,867 0.38
5 MR. W K H WEGAPITIYA 1,411,536 0.42 1,411,536 0.42
6
DEUTSCHE BANK AG AS TRUSTEE FOR NAMAL ACUITY VALUE
FUND 1,339,563 0.40 1,339,563 0.40
7 DEUTSCHE BANK AG-NATIONAL EQUITY FUND 1,318,182 0.39 1,318,182 0.39
8 DEUTSCHE BANK AG - NAMAL GROWTH FUND 1,198,934 0.36 1,198,934 0.36
9 MR. U K T N DE SILVA 1,077,897 0.32 1,077,897 0.32
10 MR. G Y N MAHINKANDA 794,572 0.24 779,272 0.23
11 MR. H D M P SIRIWARDENA 749,000 0.22 749,000 0.22
12 SEYLAN BANK PLC / MOHAMED MUSHTAQ FUAD 625,521 0.19 - -
13 MR. M K DE VOS & MRS. D J DE VOS 436,000 0.13 524,000 0.16
14 MR. A RAJARATNAM 209,705 0.06 - -
15 EMPLOYEES TRUST FUND BOARD 205,304 0.06 205,304 0.06
16 MR. C S KARIYAWASAN 200,000 0.06 200,000 0.06
17 MR. H A VAN STARREX 197,098 0.06 357,598 0.11
18 J.B. COCOSHELL (PVT) LTD 187,669 0.06 150,000 0.04
19 CEYLON BISCUITS LIMITED 170,000 0.05 170,000 0.05
20 BANK OF CEYLON NO. 1 ACCOUNT 168,727 0.05 168,727 0.05
31-03-2018 31-12-2017
15
LAUGFS Gas PLC
NOTES TO THE FINANCIAL STATEMENTS
4.5 Twenty Largest Shareholders of the company are as follows
Ordinary Non Voting Shares
As at
Name of Shareholder No.of Shares % No.of Shares %
1 EMPLOYEES PROVIDENT FUND 18,041,300 34.69 18,041,300 34.69
2 HSBC INTL NOM LTD - STATE STREET LUXEMBOURG C/O SSBT -
ALLIANCEBERNSTEIN NEXT 50 EMERGING MARKETS (MASTER) FUND SICAV-
SIF S.C.SP.
3,846,247 7.40 3,846,247 7.40
3 BANK OF CEYLON NO. 1 ACCOUNT 3,420,538 6.58 3,420,538 6.58
4 DEUTSCHE BANK AG AS TRUSTEE FOR J B VANTAGE VALUE EQUITY FUND 2,505,696 4.82 2,505,696 4.82
5 SEYLAN BANK PLC/ CARLINES HOLDINGS (PRIVATE) LIMITED 2,213,417 4.26 2,157,064 4.15
6 AMANA BANK PLC / ALMAS ORGANISATION (PVT) LIMITED 1,249,845 2.40 1,248,645 2.40
7 J. B. COCOSHELL (PVT) LTD 1,247,549 2.40 1,171,322 2.25
8 MR. A.M. WEERASINGHE 813,471 1.56 813,471 1.56
9 COMMERCIAL BANK OF CEYLON PLC/DUNAMIS CAPITAL PLC 793,906 1.53 793,906 1.53
10 SEYLAN BANK PLC / S R FERNANDO 704,992 1.36 508,698 0.98
11 DEUTSCHE BANK AG - NATIONAL EQUITY FUND 663,000 1.28 663,000 1.28
12 MR. G H I JAFFERJEE (DECEASED) 442,008 0.85 442,008 0.85
13 MR. S SIVASHANTH 404,447 0.78 404,447 0.78
14 GOLD INVESTMENT LIMITED 390,000 0.75 390,000 0.75
15 MRS C N G NARAYANA 378,800 0.73 378,800 0.73
16 MRS S D AMARASINGHE 372,400 0.72 372,400 0.72
17 NARATHA VENTURES (PRIVATE) LIMITED 308,000 0.59 308,000 0.59
18 PERSHING LLC S/A AVERBACH GRAUSON & CO. 307,604 0.59 307,604 0.59
19 MR. M.A. VALABHJI 280,000 0.54 280,000 0.54
20 PEOPLE'S LEASING & FINANCE PLC / C.D.KOHOMBANWICKRAMAGE 167,934 0.32 167,934 0.32
4.6 Stated Capital
Stated Capital is represented by number of shares in issue as given below.
As at 31-03-2018 31-12-2017
Ordinary voting shares 335,000,086 335,000,086
Ordinary non voting shares 52,000,000 52,000,000
387,000,086 387,000,086
31-03-2018 31-12-2017
16
LAUGFS Gas PLC
NOTES TO THE FINANCIAL STATEMENTS
4.7 Market price per share
For the Quarter ended
Voting Non Voting Voting Non Voting
Share Share Share Share
Highest 39.80 31.00 34.00 33.00
Lowest 21.20 20.90 27.60 24.00
Last Traded 35.50 25.80 28.10 24.80
5. Contingencies, capital and other commitments
6. Events occuring after the reporting date
There have been no material events occurring after the reporting date that require adjustments to or disclosure in the financial
statements.
31-03-2018 31-03-2017
Rs. Rs.
There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the annual
report for the year ended 31 March 2017.
17
Name of the company : LAUGFS Gas PLC
(A Subsidiary of LAUGFS HOLDINGS LIMITED)
Company No : PV - 8330 PB/PQ
Legal Form : A Public Quoted Company with Limited Liability
Subsidiaries : LAUGFS Gas (Bangladesh) Ltd.
LAUGFS Property Developers (Pvt) Ltd.
LAUGFS Maritime Services (Pvt) Ltd.
SLOGAL Energy DMCC
LAUGFS Terminals Ltd.
Sub Subsidiaries : LAUGFS On Reid(Pvt) Ltd
Parent Enterprise :
Board Of Directors : Mr.W.K.H.Wegapitiya. (Chairman/ Group CEO)
Mr.U.K.Thilak De Silva. (Group Managing Director)
Mr.H.A.Ariyaratne.
Mr.T.K.Bandaranayake.
Mr.C.L.De Alwis. (passed away on 11th May 2018)
Mr.P.M.Kumarasinghe PC (resigned on 31st December 2017)
Mr. N M Prakash.
Mr. A R D Perera
Mr. A N Ranasinghe
Bankers : Commercial Bank of Ceylon PLC.
Hatton National Bank PLC.
Sampath Bank PLC
People's Bank.
Bank of Ceylon.
Seylan Bank PLC.
DFCC Bank PLC.
Union Bank of Colombo PLC.
Standard Chartered Bank.
Pan Asia Banking Corporation PLC.
MCB Bank Ltd.
Auditors : Ernst & Young.
(Chartered Accountants)
# 201, De Saram Place,
Colombo 10,
Sri Lanka.
Secretaries : Corporate Advisory Services (Pvt) Ltd.
# 47, Alexandra Place, Colombo 07,
Sri Lanka.
Registrars : P W Corporate Secretarial (Pvt) Ltd.
# 3/17, Kinsey Road, Colombo 08,
Sri Lanka.
Registered Office : # 101, Maya Avenue, Colombo 06,
Sri Lanka.
Corporate Website : www.laugfs.lk
www.laugfsgas.lk
Corporate Information
The Company's holding Company and controlling entity is LAUGFS Holdings
Limited, which is incorporated in Sri Lanka.
18