BOGAWANTALAWA TEA ESTATES PLC STATEMENT OF FINANCIAL POSITION

Unaudited Audited Unaudited Audited GROUP COMPANY 31.03.2020 31.03.2019 31.03.2020 31.03.2019 ASSETS Non-current assets Right to use of land 1,517,655 226,210 1,517,655 226,210 Immovable estate assets on finance lease (other than land) 74,311 130 74,311 130 Tangible assets other than bearer biological assets 834,325 930,156 610,383 643,440 Intangible assets 2,358 2,518 - - Bearer biological assets 2,211,397 2,141,080 2,211,397 2,141,080 Consumable biological assets 1,008,046 983,027 1,008,046 983,027 Capital work-in-progress 8,680 25,984 8,680 25,984 Investments 45,487 45,487 208,787 108,787 Investment in associate 92,252 - 92,252 - Deferred tax asset 34,964 34,964 Total non-current assets 5,829,476 4,389,554 5,731,511 4,128,656 Current assets Produce on Bearer Biological Asset 7,836 9,037 7,836 9,037 Inventories 628,075 731,293 348,527 431,120 Trade and other receivables 619,920 605,783 271,855 211,156 Amount due from related parties 2,933 44,578 177,235 95,312 Short Term Investment 367,293 367,293 - Cash and cash equivalents 119,838 47,993 95,507 35,466 Total current assets 1,745,895 1,438,683 1,268,252 782,091 Total assets 7,575,370 5,828,237 6,999,764 4,910,748 EQUITY AND LIABILITIES Equity Stated capital 586,250 586,250 586,250 586,250 Retained earnings 594,071 699,494 779,368 825,076 Equity Investment Reserve 27,080 27,080 27,080 Equity attributable to owners of the parent 1,207,401 1,312,824 1,365,618 1,438,407 Non-controlling interest 20 20 Total equity 1,207,401 1,312,824 1,365,618 1,438,407 Non-current liabilities Debenture 873,765 873,765 Interest bearing borrowings 631,705 361,895 460,928 315,154 Liability to make lease payments - 23,068 22,187 Retirement benefit obligations 952,513 839,735 932,471 819,325 Grants and subsidies 99,677 111,174 99,677 111,174 Deferred income 234,533 243,914 234,533 243,914 Net liability to lessor of JEDB/SLSPC estates 1,568,253 462,298 1,568,253 462,298 Deferred Tax Liability 196,500 196,500 196,500 196,500 Total non-current liabilities 4,556,946 2,238,584 4,366,126 2,170,552 Current liabilities Trade and other payables 732,057 774,804 484,167 587,972 Amounts due to related parties 27,669 68,171 52,513 25,502 Dividend payable 211 212 211 212 Short-term borrowings 312,660 531,567 - - Income tax liability - - - Current portion of interest bearing borrowings 400,822 525,490 400,822 400,822 Current portion of liability to make lease payments 25,703 7,656 25,703 7,397 Current portion of net liability to lessor of JEDB/SLSPC estates 10,109 10,514 10,109 10,514 Redeemable debentures - current maturity - - - Bank overdrafts 301,794 358,415 294,494 269,372 Total current liabilities 1,811,023 2,276,829 1,268,019 1,301,789 Total equity and liabilities 7,575,370 5,828,237 6,999,764 4,910,748

Net assets per share 14 16 16 17

It is certified that the financial statements have been prepared in compliance with the requirements

…………………………………………………… Mrs. Chamari Wahalathanthri Chief Financial Officer

The Board of Directors is responsible for the preparation of these financial statements. Approved and signed for and on behalf of the Board of Directors of Bogawantalawa Tea Estates PLC.

………………………………… ………………………………… Mr. L. J. Ambani Mr.L.H.Munasinghe Co-Chairman Executive Director

30th July 2020

Note: All values are in Rupees thousands, unless otherwise stated. The above figures are not subject to audit. BOGAWANTALAWA TEA ESTATES PLC COMPREHENSIVE INCOME STATEMENT-COMPANY

Unaudited Unaudited Unaudited Audited Three Months Period Twelve Months Period 31.03.2020 31.03.2019 Change % 31.03.2020 31.03.2019 Change % Revenue 752,615 791,597 -5% 2,979,758 3,055,842 -2% Cost of sales (787,383) (804,506) 2% (3,237,730) (2,987,023) -8% Gross profit/(loss) (34,768) (12,909) 169.33% (257,972) 68,819 -474.86%

Gain on fair value of consumable biological assets 36,924 36,000 3% 128,718 127,715 1% Other income 18,443 52,629 -65% 117,255 181,740 -35% 20,600 75,720 -73% (11,999) 378,274 -103%

Administration expenses (38,420) (50,367) 24% (168,105) (230,973) 27% Distribution expenses - - - - Management fee expenses - (2,269) 100% - (9,065) 100% Net finance income/(expenses) (41,640) (72,244) 42% (171,523) (138,390) -24%

Share of profit - WBTE Associate company 20,525 - 100% 20,525

Profit/(loss) before taxation (38,935) (49,160) 21% (331,101) (154) -214724%

Income tax expenses - - 17,518

Profit/(loss) for the year (38,935) (49,160) 21% (331,101) 17,364 -2007%

Attributable to: Equity holders of the parent (38,935) (49,160) 21% (331,101) 17,364 -2007% Non-controlling interest - -

Basic earnings/(loss) per share (0.46) (0.59) 21% (3.95) 0.21 -1983% Dividend per share

Other comprehensive income/(expenses) Actuarial gain/(loss) on retirement benefit obligation (60,016) (134,726) (60,016) (134,727) 0% Tax relating to items that will not be re-classified (18,862) Valuation of gains on fair value through other comprehensive income 3,406 equity investment Other comprehensive income/(expenses) for the year (60,016) (134,726) (60,016) (150,182)

Total comprehensive income/(expenses) for the period (98,951) (183,886) -46% (391,117) (132,818) 194%

Attributable to : Equity holders of the parent (98,951) (183,886) -46% (391,117) (132,818) 194% Non-controlling interest

Note: All values are in Rupees thousands, unless otherwise stated. BOGAWANTALAWA TEA ESTATES PLC COMPREHENSIVE INCOME STATEMENT-GROUP

Unaudited Unaudited Audited Three Months Period Twelve Months Period 31.03.2020 31.03.2019 Change % 31.03.2020 31.03.2019 Change % Revenue 1,043,938 1,179,307 -11% 4,381,254 4,482,127 -2% Cost of sales (1,087,981) (1,113,628) 2% (4,487,414) (4,115,215) -9% Gross profit/(loss) (44,043) 65,679 -167% (106,160) 366,912 -129%

Gain on fair value of consumable biological assets 36,924 36,000 3% 128,718 127,716 1% Other income 64,378 80,388 -20% 257,473 185,714 39% 57,258 182,067 -69% 280,032 680,342 -59%

Administration expenses (100,531) (89,386) 12% (323,947) (396,947) -18% Distribution expenses (39,204) (27,471) 43% (91,990) (88,014) 5% Management fee expenses - (2,269) -100% - (9,065) -100% Net finance income/(expenses) (51,919) (97,891) -47% (248,356) (225,002) 10%

Share of profit - WBTE Associate company 20,525 20,525

Profit/(loss) before taxation (113,870) (34,950) 226% (363,736) (38,687) 840%

Income tax expenses (6,895)

Profit/(loss) for the year (113,870) (34,950) 226% (363,736) (45,582) 698%

Attributable to: Equity holders of the parent (113,870) (34,950) 226% (363,736) (45,582) 698% Non-controlling interest

Basic earnings/(loss) per share (1.36) (0.42) 0% (4.34) (0.54) 704% Dividend per share

Other comprehensive income/(expenses) Actuarial gain/(loss) on retirement benefit obligation (60,016) (134,726) (60,016) (134,113) Tax relating to items that will not be re-classified (18,948) Valuation of gains on fair value through other comprehensive income equity investment 3,406 (60,016) (134,726) (60,016) (149,654)

Total comprehensive income/(expenses) for the period (173,886) (169,676) -248% (423,752) (195,236) 698%

Attributable to : Equity holders of the parent (173,886) (169,676) -248% (423,752) (195,236) 698% Non-controlling interest

Note: All values are in Rupees thousands, unless otherwise stated. BOGAWANTALAWA TEA ESTATES PLC STATEMENT OF CHANGES IN EQUITY

Non- Equity GROUP Retained Stated Capital Controlling Investment Total Equity Earning Interest Reserve Balance as at 31st March 2018 586,250 20 896,085 1,482,355

01 day impact to equity instruments under SLFRS 9 27,080 27,080 Impact of adoption of SLFRS 9 (1,355) (1,355)

Dividend paid durring the period

Profit/(Loss) for the Period (45,582) (45,582)

Other Comprehensive Income (149,654) (149,654)

Balance as at 31st March 2019 586,250 20 27,080 699,494 1,312,844

Impact of Initial Application of SLFRS 16 246,602 246,602

Impact of recognition of associate profit share 71,727 71,727 Balance as at 01st April 2019,after the restatement 586,250 20 27,080 1,017,823 1,631,173

Dividend paid durring the period

Profit/(Loss) for the Period (363,736) (363,736)

Other Comprehensive Income (60,016) Balance as at 31st March 2020 586,250 20 27,080 594,071 1,267,437

COMPANY Equity Stated Investment Retained Total Equity Capital Reserve Earning Balance as at 31st March 2018 586,250 957,894 1,544,144 - 01 day impact to equity instruments under SLFRS 9 27,080 27,080 - Profit/(Loss) for the Period 17,364 17,364 - Other Comprehensive Income (150,182) (150,182) Balance as at 31st March 2019 586,250 27,080 825,076 1,438,406

Impact of Initial Application of SLFRS 16 246,602 246,602

Impact of recognition of associate profit share 71,727 71,727 Balance as at 01st April 2019,after the restatement 586,250 27,080 1,143,405 1,756,735

Dividend paid durring the period -

Profit/(Loss) for the Period (391,117) (391,117)

Other Comprehensive Income Balance as at 31st March 2020 586,250 27,080 752,287 1,365,618

Note: All values are in Rupees thousands, unless otherwise stated. BOGAWANTALAWA TEA ESTATES PLC STATEMENT OF CASH FLOWS

Unaudited Audited Unaudited Audited GROUP COMPANY 31.03.2020 31.03.2019 31.03.2020 31.03.2019 CASH FLOWS FROM OPERATING ACTIVITIES Net profit/(loss) before taxation (423,752) (38,073) (391,117) (154) Adjustments for: Depreciation/amortization 277,626 187,010 208,774 141,577 Profit on disposal of property, plant and equipment 303 (16,802) 303 (15,157) Interest income (826) (2,151) (1,850) Lease interest 4,095 3,684 4,095 3,492 Interest expense 228,829 142,229 180,345 55,509 Lease interest to JEDB/SLSPC 41,853 41,853 Provision for retirement benefit obligations 227,962 146,914 227,852 144,048 Amortization of grants and subsidies (14,402) (25,806) (14,402) (25,806) Amortization of intangible assets 750 821 Gain on fair value of consumable biological assets (76,000) (127,716) (76,000) (127,716) Gain on produce biological assets - Tea 1,879 1,879 Amortization of net income from operating rights given to LRL (9,381) (9,381) (9,381) (9,381) Profit share from associate (20,525) 5,398 (20,525) (2,922) Exchange gain on revaluation of interest bearing borrowings 2,782 Dividends income (12,900) (12,900) Equity adjustment (1,355) Operating income before working capital changes 194,678 298,386 109,944 192,473

(Increase)/Decrease in inventories 118,148 (16,924) 97,523 27,366 (Increase)/Decrease in trade and other receivables (3,853) (125,065) (61,093) (2,526) Increase/(Decrease) in due from related companies (233,990) (104,118) (103,094) (91,960) Increase/(Decrease) in trade and other payables (2,207) (50,411) (67,173) (100,694) Increase/(Decrease) in due to related companies 21,142 100,797 48,084 127 Cash generated from operations 93,919 102,666 24,190 (167,687)

Interest paid (193,112) (164,765) (144,628) (78,045) Gratuity paid (114,856) (87,545) (114,378) (81,798) Grants received 2,904 11,530 2,904 11,530 Taxes paid Net Cash flow from Operating Activities (211,145) (138,114) (231,912) (148,313)

CASH FLOWS FROM INVESTING ACTIVITIES Investment in bearer biological assets - immature plantations (187,231) (231,180) (169,928) (231,180) Harvesting of timber plantations 42,933 42,933 Additions to biological assets - nursery (9,897) (9,897) Acquisition of property, plant and equipment and capital expenditure incurred (25,355) (97,181) (35,991) (93,310) Acquisition of intangible assets (2,589) - Investment in Subsidiary - (100,000) - Proceeds from disposal of assets (303) 23,767 (303) 16,467 Deferred Tax - - Dividends received 12,900 12,900 Interest received 826 2,151 1,850 Net cash used in investing activities (212,063) (259,096) (306,221) (260,236)

CASH FLOW FROM FINANCING ACTIVITIES Payments of finance lease rentals (31,084) (10,943) (11,478) (9,375) Payments made to lessor of JEDB/SLSPC estates (29,426) (29,426) Receipts from interest bearing borrowings 1,699,039 825,421 1,022,039 825,421 Payments of long term borrowings (1,587,037) (505,415) (908,265) (455,994) Debentures - (net of receipts) 838,049 22,558 838,049 - Net cash from/(used in) financing activities 918,967 302,194 940,346 330,626 Net increase/(decrease) in cash and cash equivalents 495,759 (95,014) 402,213 (53,137) Cash and cash equivalents at the beginning of the year (310,422) (215,407) (233,906) (180,769) Cash and cash equivalents at the end of the year (Note A) 185,337 (310,422) 168,307 (233,906)

Cash and cash equivalents at the end of the year Cash and bank balances 119,838 47,993 95,507 35,466 Short term Investments 367,293 367,293 Bank overdrafts (301,794) (358,415) (294,494) (269,372) 185,337 (310,422) 168,307 (233,906) BOGAWANTALAWA TEA ESTATES PLC NOTES TO THE INTERIM FINANCIAL STATEMENT

01.Corporate Information Interim Financial Statements have been prepared in compliance Bogawantalawa Tea Estates PLC (BTE PLC) is a public with the requirements of the Accounting Standard - limited liability company,listed in the Stock LKAS 34 on ‘Interim Financial Reporting’. Previous year figures Exchange,incorporated and domiciled in Sri Lanka.The and phrases have been re-arranged wherever necessary to registered office of the Company is located at No.153, conform to the current presentation. They also comply with the Nawala Road,Narahenpita,Colombo-05 and plantations accounting policies and methods set out in the Annual Report for are situated in the planting regions of Bogawantalawa the year ended 31 March 2019 except the changes as referred to and . in notes 7.1 below.

02.Principal business activities and nature There08.Events have been After no the other balance events subsequent sheet date to the balance of operations of the company and its sheet date,which require disclosure in the interim financial subsidiaries company statements. During the year, the principal activities of the company were the cultivation, manufacture and sale of tea,rubber, 09.Net asset per share palm oil and forestry. Net Assets per share have been calculated, for all periods, based on the Number of Shares in Issue as 31st March 2019 03.Subsidiary – Bogawantalawa Tea Ceylon (Pvt) Ltd 10.Contingent liabilities During the year, the principal activity of Bogawantalawa There have been no significant changes in the nature of the Tea Ceylon (Pvt) Ltd was exporting value -added tea and Contingent Liabilities as at 31st March 2020. local trading. 11. All amounts expressed are in Sri Lankan Rupees 04.Parent company (LKR.) thousands unless otherwise stated. The company's parent undertaking and controlling party is Metropolitan Resource Holdings Limited, which holds 78.45 % of the shares, and is incorporated in Sri Lanka. 12.The Interim Financial Statements are not audited.

05.Interim Consolidated Financial Statements The Consolidated interim financial statements of the Bogawantalawa Tea Estates PLC as at the 31st March 2020 comprised the Company and subsidiary Bogawantalawa Tea Ceylon (Pvt) Ltd.

06.Date of authorization for issue The Interim Financial Statements of the Group and the Company for the period ended 31st March 2020 were authorised for issue by the Board of Directors on 30th July 2020.

07.Basis of Preparation The financial statements of the company and the group have been prepared and presented in accordance with Sri Lanka Accounting Standards, which comprise Sri Lanka Accounting Standards (LKASs/SLFRs), Statement of Alternative Treatment (SoAT), relevant interpretations of the Standing Interpretations Committee (SIC) and International Financial Reporting Interpretations Committee (IFRIC) which are collectively referred to as SLASs and in compliance with the requirements of the Companies Act No.07 of 2007 and amendments thereto, and provide appropriate disclosures as BOGAWANTALAWA TEA ESTATES PLC NOTES TO THE INTERIM FINANCIAL STATEMENT

The effect of adoption SLFRS 16 - Leases as at 01 April 2019

The Company adopted SLFRS 16 using the modified retrospective approach,to all contracts entered into before 1st January 2019 and identified as leases in accordance with LKAS 17. The cumulative effect of adopting SLFRS 16 has been recognised as an adjustment to the opening balance of retained earnings as at 1st April 2019, with no restatements of comparative information.

Lease liability ROUA Retained earning Balance as at 01 April 2019 (before intial application of SLFRS 16) 472,811,858 226,209,588 825,076,137

Transferred Due to Initial Application of SLFRS 16 1,105,549,969 1,352,152,239 246,602,270

Adjusted balance as at 01 April 2019 (at the intial application of SLFRS 16) 1,578,361,827 1,578,361,827 1,071,678,407

Investment in Associate - Walters Bay Bogawantalawa Estates (Private) Limited

The relevant entries were recognized during the financial year for the 25% shareholding in Walters Bay Bogawantalawa Estates (Private) Limited in the financial statements and retained earning was adjusted accordingly.

Total retained earnings balance as 31.03.2019 286,906,194

Share of profit as at 31.03.2019 @ 25% 71,726,549 (A)

Profit for the year of 01.04.2019 - 31.03.2020 82,100,732

Share of profit for the year of 01.04.2019 - 31.03.2020 @25% 20,525,183 (B)

Investment in associate as at 31.03.2020 92,251,732 (A + B ) BOGAWANTALAWA TEA ESTATES PLC DEBENTURE ISSUE PROCEEDS UTILIZATION AS AT 30.04.2020

As per prospectus Amount Clarification if not fully Objectiv Amount allocated from % of total Amount utilized % of Utilized against Proposed date of utilized including where e No Objective allocated in proceeds in LKR proceeds in LKR (B) allocation (B/A) utilization the funds are invested LKR - Mn -Mn (A)

1 Initial Contribution to Sinking Fund 50 Immediately 50 6% 50 100%

2 Settlement of high costing debt 300 Within 3 months 300 35% 300 100%

3 Field development activities 300 Rs 100 mn 2019/20, 300 35% 190.4 63% Board approved money Rs 200 mn in market / corporate debt 2020/21 & 2021/22 investments.

4 Factory development 200 2 years to 3 years 200 24% 9.6 5%

Total 850 850 100% 550 64% BOGAWANTALAWA TEA ESTATES PLC INVESTOR INFORMATION 01.Stated Capital Stated capital is represented by shares in issue as given below

As at 31.03.2020 As at 31.03.2019 Ordinary shares 83,750,000 83,750,000 Golden Shares 1 1 Value 586,250,010 586,250,010

02.Public share holdings As at 31.03.2020 As at 31.03.2019 The percentage of shares held by the public 10.15% 10.13% Number of shareholders representing public share holdings 18,598 18,576

03.Market price per shar As at 31.03.2020 As at 31.03.2019 Highest 1/09/2020 10.30 13.80 Lowest 3/10/2020 7.50 8.50 Last Traded - 8.90 10.90

04.The Float adjusted market capitalization as at 31st March 2020 -Rs 75,684,487.50

The Float adjusted market capitalization of the Company falls under Option 2 of Rule 7.13.1 (b) of the Listing Rules of the Colombo and the Company has complied with the minimum public holding requirement applicable under the said Option.

04.Directors Shareholding

Name of Director No of shares % %

Mr.Dinesh Jamnadas Ambani - - Mr.Carl Micheal Oscarsson Haglind Mr. Don Ariyaseela De Silva Wickramanayake 9,468,778 11.31 Mr. Lalithkumar Jamnadas Ambani Mr. Sudath Ajith Samaradiwakara Jayasundara - - Mr. Gerard Victor Maurice Nanayakkara Mr. Lalith Hemantha Munasinghe Mr. Lalith Hemantha Munasinghe

05.Twenty (20) Major shareholders as at 31/03/2020

Name No of shares %

1 Metropolitan Resource Holdings Plc 53,889,067 64.35 11,812,500 14.10 2 Commercial Plc/Metropolitan Resource Holdings Plc 3 Mr D.A.D.E.S.Wickramanayake 9,468,778 11.31 4 Capital Trust Holdings Ltd 352,293 0.42 5 Plc/Mohamed Mushtaq Fuad 222,932 0.27 6 Dr R.D.Bandaranaike 196,909 0.24 7 Mr A.K.Seneviratne 119,249 0.14 8 Mr M.M.Fuad 109,589 0.13 9 Mrs K.G.M.Pieris 100,000 0.12 10 Mr R.E.Rambukwella 93,975 0.11 11 Employees Provident Fund 81,724 0.10 12 Seylan Bank Plc/Jayantha Dewage 70,000 0.08 13 Dfcc Bank Plc/T.L. Samarawickrama 68,100 0.08 14 Dialog 67,692 0.08 15 Commercial Bank Of Ceylon Plc/Metrocorp (Pvt) Ltd 63,750 0.08 16 Kelmarsh Investments Limited 57,831 0.07 17 Katunayake Garments Limited 56,575 0.07 18 Mr P.K.C.P.Samarasinghe 50,000 0.06 19 Avondale Factories (Pvt) Limited 46,801 0.06 20 Mr P.Sasikumar 44,239 0.05 76,972,004 91.91 Others 6,777,996 8.09 83,750,000 100.00 BOGAWANTALAWA TEA ESTATES PLC

Name of the Company Bogawantalawa Tea Estates PLC

Date of incorporation 22nd June 1992

Company Registration No PQ 124

Legal Form Quoted Public Company

Stock Exchange Listing The ordinary shares of the company are listed on the Stock Exchange in Sri Lanka

Directors Mr. D J Ambani (Co Chairman) Mr.L J Ambani (Co Chairman) Mr C M O Haglind Mr. D A de Silva Wickramanayake Mr.S.A.S. Jayasundara Mr.G.V.M. Nanayakkara Mr. L H Munasinghe

Secretaries and registrars P W Corporate Secretarial (Pvt) Ltd No 3/17, Kynsey Road, Colombo 08. Telephone : 4 897 711 / 4 897 722 Fax : 4 740 588 E mail : [email protected]

Registered Office : No 153, Nawala Road , Narahenpita Colombo-05, Sri Lanka Telephone : 2 510 100 Fax 2 510 178 E mail : [email protected]

Auditors Messers, BDO Partners Chartered Accountants 65/2, Sir Chittampalam A Gardiner Mawatha Colombo 2. Telephone : 2 421 878

Bankers Commercial Bank of Ceylon PLC Seylan Bank Bank of Ceylon National Development Bank DFCC Bank HNB BANK NTB BANK