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CEYLON GUARDIAN INVESTMENT TRUST PLC
INTERIM REPORT FOR THE THREE MONTHS ENDED 30TH JUNE 2017
A CARSON CUMBERBATCH COMPANY
-Page 1-
CEYLON GUARDIAN INVESTMENT TRUST PLC
Managers’ Review
For the period ended 30th June 2017 Financials and portfolio performance The Ceylon Guardian portfolio is segmented into discretionary and non – discretionary components. The discretionary component of the portfolio is made up of a trading portfolio and long term portfolio, which are actively managed. The non- discretionary component refers to the strategic holding. The discretionary portfolio has provided an impressive performance of 10.38% CAGR over a five year period compared to the ASPI performance of 6.32%. The three year return for the portfolio was 6.82% CAGR thereby outperforming the APSI by 4.93% CAGR. The superior performance relative to market is a result of a successfully implemented value investing strategy practiced by Guardian.
For the period under review, the portfolio was mainly buying into stocks such as Tokyo Cement and Softlogic Holdings. Tokyo Cement has shown strong growth in the recent past with recent capacity expansions coming on line. Demand for cement is growing through infrastructure development and demand for housing. We expect the company to continue to perform well with continued cost management exercises and strong demand. We continue to invest in Softlogic, as management continues to strengthen its efforts on core sectors of retail, healthcare and financial services. We expect the company to benefit in the long term as its businesses grow and eventually begin to marginalize debt levels. The discretionary portfolio remains largely exposed to the banking, finance & insurance sector, food & beverage sector and diversified sector.
60
80
100
120
140
160
180
June Sep Dec Mar June Sep Dec Mar June Sep Dec Mar June Sept Dec Mar June Sept Dec Mar June
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Five Year Track RecordGuardian Discretionary Portfolio
Guardian ASPI S&P20
CAGR : 10.38 %
CAGR : 6.32 %
CAGR : 6.90 %
-Page 2-
As at As at 30-Jun-17
(Dividend adjusted)
30-Jun-17 31-Mar-17 Change
%
Dividend adjusted
performance
Discretionary portfolio (Rs. ‘000) * 14,413,008 13,078,794 10.20% 14,470,224 10.64%
Total Portfolio (Rs.‘000)* 19,647,244 18,396,828 6.80% 19,704,460 7.11%
ASPI (Points) 6,747.07 6,061.94 11.30% 11.30%
S&P 20 (Points) 3,933.51 3,438.88 14.38% 14.38%
*After adding back the total cash outflow from the distribution of dividend by the Group which was Rs. 57.22 Mn during the period. Our successful strategy which has prevailed for well over a decade remains focused on a bottom up investment selection where it is very much investee company focused with a bias on medium to long term stock picking. The total portfolio appreciated from Rs. 18.39 Bn to Rs. 19.65 Bn during the period of review. Ceylon Guardian Investment Trust PLC reported a consolidated profit after tax of Rs. 254.29 Mn for the period of three months ended 30th June 2017, compared to a profit of Rs. 114.45 Mn reported for the same period last year. As at end June 2017 the Group’s earnings per share stood at Rs. 2.08 and Net Asset Value when the portfolio is valued at market prices was Rs. 184.91 per share, an increase of 6.6% for the period. This highlights a steep discount of 44% in the traded market price per share of Rs. 103.70.
As at 30/06/2017 31/03/2017 Change % ASPI 6,747.07 6,061.94 11.3 NAV per share (Rs.) 184.91 173.53 6.6 Market price per share (Rs.) 103.70 119.70 (13.4) Discount of NAV to market price per share 44% 31%
Update on the market The All Share Price Index provided gains over 3 consecutive months to provide a return of 11.3% for the quarter ending June 2017. Average daily turnover for the period indicated improved activity levels at Rs. 1.1 bn. Much of the positive momentum was brought about by foreign net buying amounting to Rs. 22 billion. A global demand for risk assets resulted in emerging and frontier markets benefitting from capital inflows. Domestic institutional and retail investors remained relatively inactive awaiting macroeconomic pressures to alleviate. Market earnings are expected to increase by a moderate 10% and 8% for FY 2018 and FY 2019 with tight monetary policy currently in place resulting in lower economic activity. The historical PER of the Colombo Stock Exchange was recorded at 11.48x as at 30th June 2017 revealing that the CSE remains undervalued compared to historical multiples. We remain confident that the CSE provides significant upside in the long term return investors. The Macroeconomic outlook is gradually beginning to improve with focus by relevant officials on the key sensitive areas. Fiscal consolidation continues to improve and the implementation of the new Inland Revenue Act will see further progress made on this front. External debt repayment capacity has improved with gross official reserves of improving to USD 5 billion as at 30th June 2017. Infrastructure related projects are also underway along with a renewed effort on trade agreements with key partner countries. However, concerns still remain with respect to overall debt to GDP levels, inflation and attraction of FDI.
-Page 3-
Private Equity and Unit Trust Deal flow continued to be challenging during the 1st quarter, continuing from the trend seen in the last
financial year. However we are in the process of evaluating a couple of investments that have come up in the
venture capital space. Avenues to exit out of two investments is being explored, and we hope to conclude the
process over the next couple of quarters. A provision of Rs. 42.1 mn had to made against the investment in
Swiss Institute for Service Industry Development (Pvt) Ltd due to an alleged misappropriation of funds.
The unit trust business, Guardian Acuity Asset Management, through our Joint Venture with Acuity Partners has grown to Rs. 6.1 billion as at June 2017 from Rs. 4.0 billion on 31st March 2017. However with the corporate tax shelter available for unit trusts potentially being withdrawn we will see the industry being challenged to grow. Our marketing strategy is being revamped to orient ourselves to servicing the retail market going forward. Guardian Fund Management Limited Investment Managers 02nd August 2017
CEYLON GUARDIAN INVESTMENT TRUST PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - GROUP
(All figures are in Sri Lankan Rupees '000)
2017 2016 Change % 31-03-2017
Audited
Revenue 181,982 187,031 (3) 1,742,298
Impairment loss on available for sale financial assets (72,530) (11,718) 519 (198,826)
Net change in fair value of fair value through profit or loss financial assets 207,425 (13,616) (1,623) (51,206)
Profit on investment activities 316,877 161,697 96 1,492,266
Administrative and other operating expenses (57,480) (52,924) 9 (217,726)
Profit from operations 259,397 108,773 138 1,274,540
Net finance income/(expense) (2,689) 7,968 (134) 173
Profit from operations after net finance income/(expense) 256,708 116,741 120 1,274,713
Share of profit of equity accounted investee net of tax 6,984 856 716 2,747
Profit before taxation 263,692 117,597 124 1,277,460
Income tax expense (9,398) (3,148) 199 (21,126)
Profit for the period 254,294 114,449 122 1,256,334
-
Other comprehensive income
Items that will never be reclassified to profit or loss
Actuarial gain on employee benefit obligation - - - 1,520
Items that are or may be reclassified to profit or loss
Net change in fair value of available for sale financial assets 1,004,638 (1,155,294) (187) (1,180,280)
(2,738) (16,695) (84) (696,487)
(5,756) 463 (1,343) 2,505
Net exchange difference on translation of foreign operations 5,722 1,702 236 14,857
Other comprehensive income / (expense) for the period 1,001,866 (1,169,824) (186) (1,857,885)
Total comprehensive income / (expense) for the period 1,256,160 (1,055,375) (219) (601,551)
Profit attributable to:
Equity holders of the parent 184,227 95,504 93 1,028,750
Non controlling interest 70,067 18,945 270 227,584
254,294 114,449 122 1,256,334
- - - -
Total comprehensive income attributable to:
Equity holders of the parent 1,010,889 (863,105) (217) (469,811)
Non controlling interest 245,271 (192,270) (228) (131,740)
1,256,160 (1,055,375) (219) (601,551)
- - -
Earnings per share (Rs.) 2.08 1.08 11.59
Dividend per share (Rs.)* - - 4.00
* Dividend per share is based on the proposed/interim dividends.
Figures in brackets indicate deductions.
Share of other comprehensive income of equity accounted investee net of tax
Change % represent the percentage change in current period's results compared to the comparative period of previous year.
Transfer of net realized gains on disposal of available for sale financial assets
Three months ended
30th June
- Page 4 -
CEYLON GUARDIAN INVESTMENT TRUST PLC
STATEMENT OF FINANCIAL POSITION (All figures are in Sri Lankan Rupees '000)
As at 30th June 2017 2016 31-03-2017 2017 2016 31-03-2017
Audited AuditedASSETSNon-current assets
Property, plant and equipment 5,220 8,235 6,011 - - -
Intangible assets 231,917 231,917 231,917 - - -
Investment in subsidiaries - - - 2,141,799 2,141,799 2,141,799
Investment in equity accounted investee 38,158 32,995 36,929 35,000 35,000 35,000
Available for sale financial assets 15,110,347 15,084,209 13,821,686 4,230,539 3,584,667 3,755,459
Total non-current assets 15,385,642 15,357,356 14,096,543 6,407,338 5,761,466 5,932,258
Current assets
Trade and other receivables 45,256 19,114 94,182 1,521 546 145,276
Current tax assets 28,992 11,504 19,269 16,169 11,440 14,303
Fair value through profit or loss financial assets 3,278,619 2,698,484 3,136,896 465,616 396,416 438,399
Cash and cash equivalents 1,272,195 514,747 1,455,298 265,124 170,743 130,153
Total current assets 4,625,062 3,243,849 4,705,645 748,430 579,145 728,131
Total assets 20,010,704 18,601,205 18,802,188 7,155,768 6,340,611 6,660,389
-
EQUITY AND LIABILITIES
Equity
Stated capital 1,128,726 1,128,726 1,128,726 1,128,726 1,128,726 1,128,726
Capital reserves 324,685 328,399 330,441 208,660 208,660 208,660
Revenue reserves 14,963,227 13,817,066 13,946,582 5,780,587 4,968,624 5,283,876
16,416,638 15,274,191 15,405,749 7,117,973 6,306,010 6,621,262
Non controlling interest 3,459,092 3,222,422 3,214,856 - - -
Total equity 19,875,730 18,496,613 18,620,605 7,117,973 6,306,010 6,621,262
-
Non-current liabilities
Employee benefits 10,764 10,163 10,479 - - -
Total non-current liabilities 10,764 10,163 10,479 - - -
Current liabilities
Trade and other payables 110,006 91,558 153,994 27,412 32,892 26,867
Current tax liabilities 287 1,162 58 - - -
Bank overdraft 13,917 1,709 17,052 10,383 1,709 12,260
Total current liabilities 124,210 94,429 171,104 37,795 34,601 39,127
Total liabilities 134,974 104,592 181,583 37,795 34,601 39,127
Total equity and liabilities 20,010,704 18,601,205 18,802,188 7,155,768 6,340,611 6,660,389
- - - - - -
Net assets per ordinary/deferred share - Rs. 184.91 172.04 173.53 80.18 71.03 74.58
(Sgd).
V. R. Wijesinghe
Head of Finance
Carsons Management Services (Private) Limited.
Approved & Signed on behalf of the Investment Managers,
(Sgd). (Sgd). (Sgd). (Sgd).
W. Y. R. Fernando (Mrs.) M. A. R. C. Cooray (Mrs.) D. C. R. Gunawardena
Director Chairperson Director
Guardian Fund Management Limited
2nd August 2017
Approved & Signed on behalf of the Board,
Group Company
The Statement of Financial Position as at 30th June 2017 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flow for the period then
ended as disclosed in pages 4 to 8 have been drawn up from unaudited accounts.
Total equity attributable to equity holders of the parent
I certify that these financial statements comply with the requirements of the Companies Act No. 07 of 2007.
- Page 5 -
CEYLON GUARDIAN INVESTMENT TRUST PLC
STATEMENT OF CHANGES IN EQUITY - GROUP
(All figures are in Sri Lankan Rupees '000)
Attributable
to equity Non
Stated Capital Revenue holders of controlling Total
capital reserves reserves the parent interest equity
Balance as at 1st April 2016 1,128,726 327,936 14,680,634 16,137,296 3,414,692 19,551,988
Profit for the year - - 1,028,750 1,028,750 227,584 1,256,334
- 2,505 (1,501,066) (1,498,561) (359,324) (1,857,885)
- 2,505 (472,316) (469,811) (131,740) (601,551)
Cash dividend - - (266,341) (266,341) (62,045) (328,386)
Effect due to change in shareholdings - - 347 347 (7,167) (6,820)
Forfeiture of unclaimed dividends - - 4,258 4,258 1,116 5,374
Balance as at 31st March 2017 (Audited) 1,128,726 330,441 13,946,582 15,405,749 3,214,856 18,620,605
Balance as at 1st April 2017 1,128,726 330,441 13,946,582 15,405,749 3,214,856 18,620,605
Profit for the period - - 184,227 184,227 70,067 254,294
Other comprehensive income / (expense) for the period - (5,756) 832,418 826,662 175,204 1,001,866
Total comprehensive income / (expense) for the period - (5,756) 1,016,645 1,010,889 245,271 1,256,160
Cash dividend - - - - (1,035) (1,035)
Balance as at 30th June 2017 (Unaudited) 1,128,726 324,685 14,963,227 16,416,638 3,459,092 19,875,730
- -
Balance as at 1st April 2016 1,128,726 327,936 14,680,634 16,137,296 3,414,692 19,551,988
Profit for the year - - 95,504 95,504 18,945 114,449
- 463 (959,072) (958,609) (211,215) (1,169,824)
- 463 (863,568) (863,105) (192,270) (1,055,375)
Balance as at 30th June 2016 (Unaudited) 1,128,726 328,399 13,817,066 15,274,191 3,222,422 18,496,613
CEYLON GUARDIAN INVESTMENT TRUST PLC
STATEMENT OF CASH FLOWS - GROUP
(All figures are in Sri Lankan Rupees '000)
For the three months ended 30th June 2017 2016 31-03-2017
Audited
Cash flows from operating activities
Profit before taxation 263,692 117,597 1,277,460
Adjustments for:
Share of profit of equity accounted investee net of tax (6,984) (856) (2,747)
Depreciation on property, plant and equipment 791 813 3,224
Employee benefits obligation 618 636 2,471
Net finance (income) / expense 2,689 (7,968) (173)
Impairment loss on available for sale financial assets 72,530 11,718 198,826
Net change in fair value of fair value through profit or loss financial assets (207,425) 13,616 51,206
Operating profit before working capital changes 125,911 135,556 1,530,267
(Increase) / decrease in trade and other receivables 48,926 36,586 (38,482)
Net increase in investments (293,590) (597,241) (702,606)
Increase / (decrease) in trade and other payables 12,193 (61,691) (59,728)
Cash generated from / (used in) operations (106,560) (486,790) 729,451
Employee benefit paid (333) - -
Income tax paid (18,892) (4,229) (31,076)
Net cash generated from / (used in) operating activities (125,785) (491,019) 698,375
Cash flows from investing activities
Acquisition of property, plant and equipment - (234) (421)
Finance Income 149 8,082 641
Net cash generated from investing activities 149 7,848 220
Cash flows from financing activities
Dividend paid - - (261,958)
Dividend paid to non-controlling interest (57,216) (50,721) (51,302)
Redemption of units - - (6,820)
Finance expense paid (2,838) (114) (468)
Net cash used in financing activities (60,054) (50,835) (320,548)
Net increase / (decrease) in cash and cash equivalents (185,690) (534,006) 378,047
Cash and cash equivalents at the beginning of the period 1,438,246 1,045,342 1,045,342
Net exchange differences on translation of foreign operations 5,722 1,702 14,857
Cash and cash equivalents at the end of the period 1,258,278 513,038 1,438,246
Statement of cash and cash equivalents
Short-term deposits 1,240,582 508,580 1,432,674
Cash at bank 31,613 6,167 22,624
Total cash and cash equivalents 1,272,195 514,747 1,455,298
Bank overdrafts (13,917) (1,709) (17,052)
Net cash and cash equivalents for the purpose of statement of cash flows 1,258,278 513,038 1,438,246
- - -
Figures in brackets indicate deductions.
Other comprehensive income / (expense) for the year
Total comprehensive income / (expense) for the year
Other comprehensive income / (expense) for the year
Total comprehensive income / (expense) for the year
- Page 6 -
CEYLON GUARDIAN INVESTMENT TRUST PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY
(All figures are in Sri Lankan Rupees '000)
2017 2016 Change % 31-03-2017
Audited
Revenue 37,174 59,393 (37) 510,249
Impairment loss on available for sale financial assets - (5,859) (100) (103,611)
Net change in fair value of fair value through profit or loss financial assets 26,569 10,860 145 1,870
Profit on investment activities 63,743 64,394 (1) 408,508
Administrative and other operating expenses (24,502) (23,194) 6 (90,802)
Profit from operations 39,241 41,200 (5) 317,706
Finance expense - (47) (100) (56)
Profit before taxation 39,241 41,153 (5) 317,650
Income tax expense (748) (1,158) (35) (3,678)
Profit for the period 38,493 39,995 (4) 313,972
-
Other comprehensive income
460,956 60,681 660 356,164
Transfer of realized gains on disposal of available for sale financial assets (2,738) (3,170) (14) 6,722
Other comprehensive income for the period 458,218 57,511 697 362,886
Total comprehensive income for the period 496,711 97,506 409 676,858
Earnings per share (Rs.) 0.43 0.45 3.54
Dividend per share (Rs.)* - - 4.00
* Dividends per share is based on the proposed / interim dividends.
Figures in brackets indicate deductions.
Change % represent the percentage change in current period's results compared to the comparative period of previous year.
Net change in fair value of available for sale financial assets
Three months ended
30th June
- Page 7 -
CEYLON GUARDIAN INVESTMENT TRUST PLC
STATEMENT OF CHANGES IN EQUITY - COMPANY
(All figures are in Sri Lankan Rupees '000)
Stated Capital Revenue Total
capital reserves reserves equity
Balance as at 1st April 2016 1,128,726 208,660 4,871,118 6,208,504
Profit for the year - - 313,972 313,972
Other comprehensive income for the year - - 362,886 362,886
Total comprehensive income for the year - - 676,858 676,858
Cash dividend - - (266,341) (266,341)
Forfeiture of unclaimed dividends - - 2,241 2,241
Balance as at 31st March 2017 (Audited) 1,128,726 208,660 5,283,876 6,621,262
Balance as at 1st April 2016 1,128,726 208,660 5,283,876 6,621,262
Profit for the period - - 38,493 38,493
Other comprehensive income for the period - - 458,218 458,218
Total comprehensive income for the period - - 496,711 496,711
Balance as at 30th June 2017 (Unaudited) 1,128,726 208,660 5,780,587 7,117,973
Balance as at 1st April 2016 1,128,726 208,660 4,871,118 6,208,504
Profit for the period - - 39,995 39,995
Other comprehensive income for the period - - 57,511 57,511
Total comprehensive income for the period - - 97,506 97,506
Balance as at 30th June 2016 (Unaudited) 1,128,726 208,660 4,968,624 6,306,010
CEYLON GUARDIAN INVESTMENT TRUST PLC
STATEMENT OF CASH FLOWS - COMPANY
(All figures are in Sri Lankan Rupees '000)
For the three months ended 30th June 2017 2016 31-03-2017
Audited
Cash flows from operating activities
Profit before taxation 39,241 41,153 317,650
Adjustments for:
Finance expense - 47 56
Impairment loss on available for sale financial assets - 5,859 103,611
Net change in fair value of fair value through profit or loss financial assets (26,569) (10,860) (1,870)
Operating profit before working capital changes 12,672 36,199 419,447
Increase / (decrease) in trade and other receivables 143,755 112,541 (32,189)
Net increase in investments (17,510) (273,852) (287,994)
Increase in trade and other payables 545 8,524 357
Cash generated from / (used in) operations 139,462 (116,588) 99,621
Income tax paid (2,614) (1,155) (6,538)
Net cash generated from / (used in) operating activities 136,848 (117,743) 93,083
Cash flows from financing activities
Dividend paid - - (261,958)
Finance expense paid - (47) (56)
Net cash used in financing activities - (47) (262,014)
Net increase / (decrease) in cash and cash equivalents 136,848 (117,790) (168,931)
Cash and cash equivalents at the beginning of the period 117,893 286,824 286,824
Cash and cash equivalents at the end of the period 254,741 169,034 117,893
Statement of cash and cash equivalents
Short-term deposits 262,092 168,204 128,593
Cash at bank 3,032 2,539 1,560
Total cash and cash equivalents 265,124 170,743 130,153
Bank overdraft (10,383) (1,709) (12,260)
Net cash and cash equivalents for the purpose of statement of cash flows 254,741 169,034 117,893
- - -
Figures in brackets indicate deductions.
- Page 8 -
CEYLON GUARDIAN INVESTMENT TRUST PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(All figures are in Sri Lankan Rupees '000 unless otherwise stated).
1 Basis of Preparation of Interim Financial Statements
2 Revenue
For the three months ended 30.06.2017 30.06.2016 30.06.2017 30.06.2016
Dividend income 24,273 44,698 80,923 138,536
Interest income 5,776 6,093 39,889 14,528
- - 50,934 4,761
7,125 8,602 7,124 26,790
Portfolio Management fees - - 3,112 2,416
37,174 59,393 181,982 187,031
- - - -
3 Profit on portfolio activities
4 Valuation of investment portfolio Fair value Fair value Fair value
4.1 Group As at As at As at
30.06.2017 30.06.2016 31.03.2017
Summary of investment portfolio
Available for sale financial assets (4.1.1) 15,110,347 15,084,209 13,821,686
Fair value through profit or loss financial assets (4.1.2) 3,278,619 2,698,484 3,136,896
18,388,966 17,782,693 16,958,582
4.1.1 Available for sale financial assets Fair Fair Fair
value value value
as at as at as at
30.06.2017 30.06.2016 31.03.2017
Sector
Bank, Finance & Insurance 4,712,626 5,130,537 4,155,999
Beverage, Food & Tobacco 1,200,361 1,389,914 982,140
Constructions & engineering 166,423 142,464 154,120
Diversified 1,146,889 492,456 1,094,753
Footwear & Textiles 322,368 394,254 301,228
Healthcare - 15,425 -
Hotels & Travels 183,422 275,774 169,907
Manufacturing 1,094,837 505,726 602,730
Motors - 27 -
Oil Palms 5,234,236 5,824,901 5,318,034
Telecommunications 744,443 629,584 701,017
Unit trusts 45,924 123,195 40,822
14,851,529 14,924,257 13,520,750
Unquoted investments 258,818 159,952 300,936
Total investment in available for sale financial assets 15,110,347 15,084,209 13,821,686
4.1.2 Fair value through profit or loss financial assets Fair Fair Fair
value value value
as at as at as at
Sector 30.06.2017 30.06.2016 31.03.2017
Bank, Finance & Insurance 773,218 633,506 665,605
Beverage, Food & Tobacco 22,587 194,745 20,172
Constructions & engineering 102,140 98,373 95,774
Diversified 482,248 418,315 441,187
Footwear & Textiles 14,965 23,587 14,787
Healthcare 51,790 57,670 49,077
Hotels & Travels 53,017 77,829 50,449
Land & Property 13,650 11,450 14,140
Manufacturing 367,502 145,713 270,991
Power & Energy 37,848 12,326 21,332
Telecommunications 84,008 70,887 78,393
Trading - 5,931 - Unit trusts 1,275,646 948,152 1,414,989
Total investment in fair value through profit or loss financial assets 3,278,619 2,698,484 3,136,896
- - -
The Interim Financial Statements of the Company and the Group have been prepared in consistence with the accounting policies and methods applied for the year ended 31st March 2017.
These Interim Financial Statements are in compliance with Sri Lanka Accounting Standard - "Interim Financial Reporting" ( LKAS 34 ). Further, the provision of the Companies Act No. 7
of 2007 have been considered in preparing the Interim Financial Statements of the Company and the Group.
The total fair value of the investment portfolio of the Group including cash and cash equivalents amounts to Rs. 19.65 Bn as at 30th June 2017 (2016 - Rs. 18.29 Bn).
The Group recorded a profit of Rs. 316.87 Mn and the Company recorded a profit of Rs. 63.74 Mn on investments activities for the three months ended 30th June 2017.
Company Group
Net gain from disposal of fair value through profit or loss financial assets
Net gain from disposal of available for sale financial assets
- Page 9 -
CEYLON GUARDIAN INVESTMENT TRUST PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(All figures are in Sri Lankan Rupees '000 unless otherwise stated).
4 Valuation of Investment Portfolio (Continued) Fair Fair Fair
4.2 Company value value value
As at as at as at
30.06.2017 30.06.2016 31.03.2017
Summary of investment portfolio
Available for sale financial assets (4.2.1) 4,230,539 3,584,667 3,755,459
Fair value through profit or loss financial assets (4.2.2) 465,616 396,416 438,399
4,696,155 3,981,083 4,193,858
4.2.1 Available for sale financial assets Fair Fair Fair
value value value
As at as at as at
Sector 30.06.2017 30.06.2016 31.03.2017
Bank, Finance & Insurance 1,924,134 1,688,124 1,731,428
Beverage, Food & Tobacco 931,081 927,234 869,474
Constructions & engineering 55,512 47,520 51,408
Diversified 415,458 117,180 355,663
Footwear & Textiles 146,629 193,731 148,019
Healthcare - 15,425 -
Hotels & Travels 97,178 138,095 90,017
Manufacturing 421,526 218,688 283,809
Motors - 27 -
Telecommunications 185,645 160,893 174,816
Unit Trusts 22,962 50,573 20,411
4,200,125 3,557,490 3,725,045
Unquoted investments 30,414 27,177 30,414
Total investments in available for sale financial assets 4,230,539 3,584,667 3,755,459
4.2.2 Fair value through profit or loss financial assets Fair Fair Fair
value value value
As at as at as at
Sector 30.06.2017 30.06.2016 31.03.2017
Bank, Finance & Insurance 98,589 89,437 91,332
Beverage, Food & Tobacco - 27,441 -
Diversified 84,969 99,031 72,664
Healthcare 22,715 6,380 21,525
Hotels & Travels 9,242 10,681 9,288
Power & Energy 6,169 - 5,963
Telecommunications 12,000 10,400 11,300
Unit trusts 231,932 153,046 226,327
Total investments in fair value through profit or loss financial assets 465,616 396,416 438,399
- - -
As at As at As at
5 Price Index movements 30.06.2017 30.06.2016 31.03.2017
All Share Price Index (points) 6,747 6,283 6,062
S&P SL 20 Index (points) 3,934 3,300 3,439
6 Events after the reporting period
Subsequent to the reporting period, no circumstances have arisen which would require adjustments to or disclosure in the financial statements, other than the above.
7 Commitments and contingencies
7.1 Capital expenditure commitments
7.2 Contingencies
8 Comparative Figures
No material capital commitments exist as at the reporting date.
There were no material contingent liabilities as at the reporting date.
Comparative figures have been rearranged where necessary to conform to the classification and presentation as at 30th June 2017.
After satisfying the solvency tests in accordance with Section 57 of the Company’s Act, No. 7 of 2007, The Directors have recommended the payment of a first and final dividend of Rs.4/-
(2016 - Rs.3/-) per Ordinary and Deferred share for the year ended 31st March 2017 amounting to Rs.355,121,420/- (2016 - Rs. 266,341,065/-) which was approved at the Annual General
Meeting held on 26th July 2017 . According to Sri Lanka Accounting Standard (LKAS 10) - “Events after the reporting period” the proposed final dividend has not been recognised as a
liability as at 30th June 2017.
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CEYLON GUARDIAN INVESTMENT TRUST PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(All figures are in Sri Lankan Rupees '000 unless otherwise stated).
9 Liabilities for Expenditure
10 Stated Capital
Stated Capital of the Company amounted to Rs.1,128.7Mn which consists of 82,978,868 Ordinary Shares and 5,801,487 Fully paid Deferred Shares.
11 Related party transactions
For the three months ended 30th June 2017 2016 2017 2016
Transactions with subsidiaries
Dividends received - - 5,423 -
Portfolio management fee paid - - 3,900 3,401
Business development fee paid - - 7,000 7,000
Transactions with jointly controlled entity
Portfolio management fee received 1,800 1,200 - -
Transactions with affiliate companies
Dividends received - - - -
Expenses on CSR activities - - - -
Receiving of services 11,828 8,473 5,590 2,946
12 Twenty Major Shareholders as at 30th June 2017 - Ordinary shares
Name of the Shareholder No. of Shares %
1 Carson Cumberbatch PLC A/C No.2 55,723,635 67.15
2 Employees Provident Fund 2,969,515 3.58
3 Thurston Investments Limited 2,881,608 3.47
4 GF Capital Global Limited 1,617,666 1.95
5 Mellon Bank N.A.-Commonwealth of Massachusetts 1,374,657 1.66
6 Miss G.I.A. De Silva 877,611 1.06
7 Mr. G.J.W. De Silva 877,232 1.06
8 Mrs. M.L. De Silva 866,837 1.04
9 Miss M.P. Radhakrishnan 686,026 0.83
10 Miss A. Radhakrishnan 686,026 0.83
11 Mr. R. Maheswaran 685,016 0.83
12 Mr. K.C. Vignarajah 623,408 0.75
13 Mr. H.A. Van Starrex 595,491 0.72
14 Employees Trust Fund Board 490,998 0.59
15 The Ceylon Desiccated Coconut And Oil Company Pvt 386,550 0.47
16 Waldock Mackenzie Ltd/Mr. M.A.N. Yoosufali 375,200 0.45
17 Miss R.H. Abdulhussein 358,502 0.43
18 Miss G.N.A. De Silva 353,250 0.43
19 Mr. O.D. Liyanage 267,368 0.32
20 Sinharaja Hills Plantation Pvt Limited 254,861 0.31
13 Public Holding
Ordinary Shares of the Company held by the public as at 30th June 2017 are as follows;
Number of public shareholders 1,592
Percentage of public holding 32.70%
14 Directors Shareholding as at 30th June 2017 No. of shares
Mrs. M.A.R.C. Cooray -
Mr. D. C. R. Gunawardena 257
Mr. V. M. Fernando -
Mr. K. Selvanathan -
Mr. C. W. Knight -
Mr.T. C. M. Chia -
Mrs. W.Y.R. Fernando -
15 Investor Information
Market Performance - Ordinary Shares
For the three months ended 30.06.2017
Market value per share (Rs.) 103.70
Highest price per share (Rs.) 112.90
Lowest price per share (Rs.) 93.50
Market capitalization (Rs. thousands) 8,604,909
CompanyGroup
There were no liabilities for management fees or any similar expenditure not provided for in the interim financial statements.
- Page 11 -
Corporate Information
Name of CompanyCeylon Guardian Investment Trust PLC(A Carson Cumberbatch Company)
Domicile and Legal Form
Company Registration No. PQ 52
Principal Activity and Nature of Operations
Parent and Ultimate Parent Entities
DirectorsMrs.M.A.R.C. Cooray (Chairperson) (Appointed Chairperson w.e.f. 1st September 2016)Mr. D. C. R. GunawardenaMr.V. M. FernandoMr.K. SelvanathanMr. C.W. KnightMr.T.C.M. Chia Mrs. W.Y.R. Fernando (Appointed Director w.e.f. 15th August 2016)
Number of EmployeesThe Company did not have any employees of its own during the period under review.
BankersStandard Chartered BankHSBCCommercial Bank of Ceylon PLCDeutsche Bank AG ColomboHatton National Bank PLC
AuditorsMessrs. KPMGChartered Accountants,No. 32A, Sir Mohamed Macan Markar Mawatha,Colombo 3.
Investment ManagersGuardian Fund Management LimitedNo. 61, Janadhipathi Mawatha,Colombo 1.Tele: +94-11-2039200Fax: +94-11-2439777
Managers & SecretariesCarsons Management Services (Private) Limited,No. 61, Janadhipathi Mawatha,Colombo 1.Tele: +94-11-2039200Fax: +94-11-2039300
Registered Office and Principal Place of BusinessNo. 61, Janadhipathi Mawatha,Colombo 1.Tele: +94-11-2039200Fax: +94-11-2039300
Corporate Websitewww.carsoncumberbatch.com
Ceylon Guardian Investment Trust PLC is a Public Quoted Company with limited liability domiciled in Sri Lanka. The Company was
incorporated in Sri Lanka in 1951.
During the period, the principal activity of the Company was holding and managing of an investment portfolio.
In the opinion of the Director’s Carson Cumberbatch PLC is the Parent Company of Ceylon Guardian Investment Trust PLC and Bukit
Darah PLC is the Ultimate Parent and Controlling entity of Ceylon Guardian Investment Trust PLC