Financial Statements Xls - Ambeon Holdings

Ambeon Holdings PLCInterim Consolidated Cash Flow Statement - GroupFor the period ended 31 March 2020Rs.000'Cash flow from operating activitiesProfit/(Loss) before tax from continuing operationsProfit/(Loss) before tax from discontinued operations31 March 202031 March 84)876(153,860)1,397,051Working capital adjustments(Increase)/decrease in trade & other receivables(Increase)/decrease in inventoriesIncrease/(decrease) in trade & other payablesIncrease/(decrease) in Deferred (359,178)1,283,525(41,286)Gratuity PaidIncome tax paidInterest paidTotal net cash (used in)/from operating 11)(147,506)(430,828)(569,220)Cash flow from investing activitiesPurchase of Property, plant & equipmentPurchase of intangible assetsProceeds from sale of investmentProceeds from disposal of Property, Plant & equipmentInvestment in Other Financial InvestmentsInvestment In Current InvestmentsInvestment in Investment PropertyInvestment in Equity Accounted investeeInterest Income on InvestmentProceed from Disposal of AssociateAcquisition of SubsidiariesTotal net cash (used in)/from investing 778,009)1,369,791Profit/(Loss) before taxAdjustments:Depreciation Of Property Plant & EquipmentImpairment of Goodwill(Profit)/Loss on disposal of Property, plant & equipmentFinance IncomeFinance CostProvision for gratuityFair Value (Gain)/Loss On Current InvestmentsFair Value Gain on Investment propertyInterest on other Financial liabilitiesOther incomeImpairment on Trade ReceivablesAmortization of Intangible AssetsAllowance for obsolete and slow moving inventories(Profit)/Loss from Disposal of Current InvestmentShare of (Profit)/Loss from AssociatesImpairment of PPELoss on Disposal of AssociateExchange Gain/LossGain on Loan Write BackCash flow from financing activitiesProceeds from long-term liabilities, net of paymentsAcquisition by Non Controlling InterestAcquisition from Non Controlling InterestEffect of exchange rate change in loans & borrowingsRepayment of finance leaseProceeds from Non-Controlling Interest Through Holding ChangeDividend paidDividend paid to non controlling interestTotal net cash (used in)/from financing activitiesNet foreign Exchange DifferenceNet increase/(decrease) in Cash and Cash equivalentsCash and cash equivalents as at 1 AprilCash and cash equivalents as at 31 MarchCash and cash equivalents as at 31 MarchFavorable Cash and bank balancesUnfavorable Cash and Bank balancesThe notes on pages 10 to 14 are integral part of the financial statements.Figures in brackets indicate 49,458)610,567(1,388,577)(778,009)

Ambeon Holdings PLCFor the period ended 31 March 2020Notes to the Interim Consolidated Financial Statements1. Basis of preparationThe interim consolidated financial statements for the period ended 31 March 2020 have been prepared in accordance with LKAS 34 - Interim Financial Reporting. The Interim Consolidated Financial Statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with theGroup’s Audit Financial Statements as at 31 March 2019.Where appropriate, certain financial statement line items have been reclassified to conform to the current period presentation.2. Opearating Results - Segment InformationPeriod Ended 31 March20202019 (Audited)Manufacturing Footwear20202019 (Audited)Manufacturing Porcelain20202019 (Audited)Manufacturing Textile20202019 (Audited)Investment20202019 (Audited)Property20202019 (Audited)IT and related Services20202019 (Audited)Financial Services20202019 (Audited)Group TotalRs.000' (Unaudited)Total RevenueRevenueResultsProfit/(Loss) Before Net Finance CostFinance CostsProfit /(Loss) Before Income TaxIncome Tax ExpenseProfit /(Loss) After TaxProfit/(Loss) From Discontinued OperationNet Profit/ (Loss) for the 9328,87453,87428,874(11,427)17,44717,447Equity Holders of the ParentNon-controlling 468As at 31 MarchAssets and LiabilitiesNon-Current AssetsCurrent AssetsTotal assets*Non-Current LiabilitiesCurrent LiabilitiesTotal Liabilities ,597,8382,036,46911,197,00213,233,471Financial Performance - Business Segments* Segment assets do not include investment in subsidiaries , investment in group preference shares and inter company current account balances.**Segment liabilities do not include group preference shares and inter company current account balances, including loan balances.10

Ambeon Holdings PLCFor the period ended 31 March 2020Notes to the Interim Consolidated Financial Statements3 New Standards, interpretations and amendments adopted by the GroupSLFRS 16 - LeasesSLFRS 16 specifies how an entity will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model requiringleases recognise assets and liabilities for all leases unless the term is 12 months or less or the underlying asset has a lower value. The Lessors continue toclassify leases as operating or finance as SLFRS 16's approach for lessor accounting substantially unchanged from its predecessor. SLFRS 16 is effective forfinancial reporting periods beginning on or after 1st January 2018, with early adoption permitted.The Group has lease contracts for retail stores typically made for 6 years of lease term and has extension option. Lease terms arenegotiated on an individual basis and contain a wide range of different terms and conditions.Right of use assetsThe Group recognises right of use assets when the underlying asset is available for use. Right of use assets are measured at cost, less any accumulateddepreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount of leaseliabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unlessthe Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right of use assets are depreciated ona straight-line basis over the shorter of its estimated useful life or the lease term.Lease liabilitiesAt the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the leaseterm. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interestrate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion ofinterest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change inthe lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.Set out below, are the carrying amounts of right of use assets and lease liability and the movements for the period ended 31 March 2020.Right of use assets"000"As at 1st April 2019Additions/ TransfersAmortisationExchange Reserve ImpactInterest costPayment991,372(62,707)62,876991,540Lease liability"000"166,21520,749(51,480)135,484SLFRS 09 -Financial instruments- Adoption of Cashflow Hedge AccountingFor designated and qualifying cashflow hedges, the effective portion of the gain or loss on the hedging instrument is initially recognized directly in equity inthe “Cash flow hedge reserve”. The ineffective portion of the gains or losses on the hedge instrument is recognized immediately in the P/L.When the hedge cashflow affect the income statement, the gain or loss on the hedging instrument is recorded in the corresponding income or expense lineof the income statement.When a hedging instrument expires, or is sold, terminated, exercised or when a hedge no longer meet the criteria for hedgeaccounting, any cumulative gains/losses existing in other comprehensive income at that time remains in other comprehensive income and is recognizedwhen the hedge forecast transaction ultimately recognized in the income statement. When a forecast transaction is no longer expected to occur theCumulative gains/loss was reported in other comprehensive income is immediately transferred to the income statement.4 Commitment and ContingenciesName of the CompanyRoyal Fernwood Porcelain LtdMillennium IT ESP (pvt) LtdSouth Asia Textiles LtdCeylon Leather Products Manufacturers LtdCeylon Leather Products LtdAmountLKR MnBankPeople's BankSeylan BankPeoples BankPeoples BankBank Of Ceylon11652,000804 (USD 4.4 Mn)20560OutstandingBalance as at 31March LKR Mn16932660174-

Ambeon Holdings PLCFor the period ended 31 March 2020Notes to the Interim Consolidated Financial Statements5 Changes in Accounting Policies and DisclosuresThe Company re-assessed its accounting for investments in subsidiaries in separate financial statements. The Company had previouslymeasured all investments in subsidiaries at cost whereby, after initial recognition the asset was carried at cost less accumulatedimpairment losses. During the year the Company elected to change the method of accounting for investments in subsidiariesretrospectively as the Company believes that the accounting for investments in subsidiaries in accordance with SLFRS 9 provides morerelevant information to the users of its financial statements. In addition, available valuation techniques provide reliable estimates of fairvalue of the investments in subsidiaries. The Company applied the change retrospectively.Accounting for Investments in SubsidiariesInvestment in Subsidiary are those entities that is controlled by the Company. Investment in subsidiary are accounted at fair valuethrough profit or loss in accordance with SLFRS 9. They are initially recognized at fair value, Subsequent to initial recognition, the fairvalue gains or losses are recognized in the statement of profit or loss in the separate financial statements until the date on which thecontrol is lost. The dividends received from the Subsidiary are treated as income in the statement of profit or loss of the separatefinancial statements.2018AuditInvestment in subsidiaryFair Valaution GainImpact6,775,9456,775,945Deferred TaxDeferred tax Charge on fair value Gain77,37777,377Retained earning(1,706,547)2019AuditedInvestment in subsidiaryFair Valaution Gain 2018Fair Valaution Gain 20196,414,0226,414,022Deferred TaxDeferred tax Charge on fair value Gain 2018Deferred tax Charge on fair value Gain 2019Retained ct for Profit or Loss StatementImpact2019AuditedFair value gain on investment subsidiary fair valuationFair value 996Investment in subsidiary as at 31 March 20202019RestatedInvestment in subsidiaryDeferred taxInvestment11,486,8092019ChargeRestated329,906FV Gain2020Un Audited151,4661,025,568FV Gain charge12,663,8432020Un Audited(244)59,127388,790

Ambeon Holdings PLCFor the period ended 31 March 2020Notes to the Interim Consolidated Financial Statements6FAIR VALUE MEASUREMENTGROUPThe Group uses the following hierarchy for determining and disclosing the fair value of assets and liabilities by valuation technique:Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilitiesLevel 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectlyLevel 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market dataThe Group held the following assets and liabilities carried at fair value in the statement of financial position:Assets Measured at Fair ValueInvestment PropertiesFinancial Instr

The notes on pages 10 to 14 are integral part of the financial statements. Figures in brackets indicate deductions. Quarter Ended 31 March Twelve Months Ended 31 March Rs.000' Quarter Ended 31 March Twelve Months Ended 31 March 2. Ambeon Holdings PLC Interim Statement of