PROVISIONAL CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED 31st MARCH 2021 The Lanka Hospitals C O R P O R A T I O N PLC (PQ 180) THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements For the Quarter ended 31st March 2021 Board of Directors Dr.Bandula WIJESIRIWARDENA - Chairman Mr. Ashish BHATIA Ms. Richa Singh DEBGUPTA Ms.Roshini CABRAAL Dr.Ravindra RUBERU Ms.Lakshmi SANGAKKARA Mr. Mayura FERNANDO Mr. Kushan De ALWIS PC Mr. Nadun FERNANDO Ms.Dayakanthi ABEYRATHNE ( Resigned on 10th April 2021 ) Dr. Kanishka KARUNARATNE Mr.Jagath WELLAWATTA Mr. Anurag KALRA - ( Alternate Director to Mr. Ashish BHATIA ) Mr. Rajiv PURI (Alternate Director to Ms. Richa Singh DEBGUPTA ) Principal Place of Business & Registered Office No. 578, Elvitigala Mawatha, Narahenpita, Colombo 05 Tel: +94 11 5430000 Fax: +94 11 4511199 E-mail: [email protected] Web: www.lankahospitals.com THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st March 2021 Statement of Financial Position Group Company As at, 31st Mar 2021 31st Dec 2020 31st Mar 2021 31st Dec 2020 Audited Audited Rs. Rs. Rs. Rs. ASSETS Non Current Assets Property, Plant & Equipment 4,749,783,009 4,757,111,279 4,333,469,363 4,334,095,670 Right of Use Assets 547,348,659 551,719,758 443,747,298 446,981,873 Intangible Assets 67,283,644 56,532,676 55,256,422 42,399,841 Investment Property - - 142,000,000 142,000,000 Investment in Subsidiary - - 414,000,020 414,000,020 Total Non Current Assets 5,364,415,312 5,365,363,714 5,388,473,103 5,379,477,404 Current Assets Inventories 443,707,688 438,907,124 341,871,984 347,819,214 Trade & Other Receivables 805,107,928 676,257,705 549,623,960 541,069,932 Amounts due from Related Parties 2,837,229 3,745,338 33,655,702 11,380,516 Other Financial Assets 3,350,624,178 3,106,994,000 2,975,605,000 2,756,994,000 Cash and Cash Equivalents 637,630,944 290,657,430 555,949,382 231,146,994 Total Current Assets 5,239,907,968 4,516,561,596 4,456,706,027 3,888,410,655 Total Assets 10,604,323,280 9,881,925,310 9,845,179,130 9,267,888,059 EQUITY AND LIABILITIES Equity Stated Capital 2,671,543,090 2,671,543,090 2,671,543,090 2,671,543,090 Revaluation Reserve 1,373,288,469 1,093,047,507 1,279,863,111 1,008,006,749 Retained Earnings 3,984,004,139 3,404,721,752 3,230,987,057 2,950,664,127 Total Equity 8,028,835,698 7,169,312,349 7,182,393,258 6,630,213,967 Non Current Liabilities Employee Benefit Obligations 299,634,062 294,426,643 263,305,478 259,503,102 Deferred Tax Liabilities 547,129,159 1,052,711,169 515,570,220 996,303,172 Lease Liability 189,538,401 199,744,680 108,520,935 112,145,521 Total Non Current Liabilities 1,036,301,622 1,546,882,492 887,396,633 1,367,951,795 Current Liabilities Amounts due to Related Parties 4,769,075 4,769,076 4,769,075 4,769,075 Trade & Other Payables 989,996,694 785,047,518 1,345,876,415 952,719,211 Lease Liability 81,916,424 72,424,798 57,216,240 49,908,439 Income Tax Payable 70,472,658 47,915,055 68,392,616 47,247,078 Bank Overdraft 392,031,109 255,574,022 299,134,892 215,078,494 Total Current Liabilities 1,539,185,960 1,165,730,468 1,775,389,238 1,269,722,297 Total Liabilities 2,575,487,582 2,712,612,961 2,662,785,872 2,637,674,092 Total Equity & Liabilities 10,604,323,280 9,881,925,310 9,845,179,130 9,267,888,059 The figures as at 31st March 2021 are provisional and subject to audit. I certify that the consolidated financial statements comply with the requirements of the Companies Act No. 07 of 2007. Group Chief Financial Officer The Board of the Directors is responsible for the preparation and presentation of these consolidated financial statements. Approved and signed for and on behalf of the Board. Chairman Director Date 12th May 2021 Colombo (Amounts in brackets indicate deductions) THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st March 2021 Statement of Comprehensive Income Group Company For the 3 months ended, 31st March 2021 31st March 2020 31st March 2021 31st March 2020 Rs. Rs. Rs. Rs. Revenue from contract with customers 2,205,704,837 1,697,399,649 1,492,706,209 1,385,845,180 Cost of services (1,160,143,501) (949,881,319) (891,842,535) (827,982,392) Gross profit 1,045,561,336 747,518,331 600,863,674 557,862,788 Other operating income 17,236,566 18,265,107 19,025,919 20,061,957 Administrative expenses (526,760,117) (541,033,048) (381,709,480) (410,164,461) Other operating expenses (173,953,182) (171,099,586) (158,700,583) (153,491,980) Change in fair value of investment property - - - - Profit from operations 362,084,603 53,650,803 79,479,529 14,268,304 Finance income 192,583,211 133,451,023 187,851,571 123,052,824 Finance Cost (8,169,743) (9,467,839) (4,740,094) (6,647,911) Profit before tax 546,498,070 177,633,987 262,591,006 130,673,216 Income tax expense (59,594,873) (22,292,566) (58,182,808) (19,817,404) Effect on deferred tax due to income tax rate change 260,178,317 - 243,713,859 - Profit for the period 747,081,514 155,341,421 448,122,057 110,855,812 Other comprehensive Income Effect on deferred tax due to income tax rate change 280,240,962 - 271,856,362 - Other comprehensive income net of tax 280,240,962 - 271,856,362 - Total comprehensive income for the period 1,027,322,476 155,341,421 719,978,419 110,855,812 Basic earnings per share 3.34 0.69 2.00 0.50 Dividend per share 0.75 - 0.75 - (Amounts in brackets indicate deductions) THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st March 2021 Company Statement of Changes in Equity Stated Revaluation Retained Total capital reserve earning / (loss) Balance as at 1st January 2020 2,671,543,090 918,291,662 2,464,218,824 6,054,053,576 Profit for the period (January 2020 - March 2020) - - 110,855,812 110,855,812 Balance as at 31st March 2020 2,671,543,090 918,291,662 2,575,074,636 6,164,909,388 Balance as at 1st January 2021 2,671,543,090 1,008,006,749 2,950,664,127 6,630,213,967 Profit for the period (January 2021 - March 2021) - - 448,122,057 448,122,057 Other comprehensive income for the year Effect on deferred tax due to income tax rate change - 271,856,362 - 271,856,362 Dividend - - (167,799,127) (167,799,127) Balance as at 31st March 2021 2,671,543,090 1,279,863,111 3,230,987,057 7,182,393,258 Group Statement of Changes in Equity Stated Revaluation Retained Total capital reserve earning / (loss) Balance as at 1st January 2020 2,671,543,090 982,213,369 2,975,801,877 6,629,558,336 Profit for the period (January 2020 - March 2020) - - 155,341,421 155,341,421 Balance as at 31st March 2020 2,671,543,090 982,213,369 3,131,143,298 6,784,899,757 Balance as at 1 January 2021 2,671,543,090 1,093,047,507 3,404,721,752 7,169,312,349 Profit for the period (January 2021 - March 2021 ) - - 747,081,514 747,081,514 Other comprehensive income for the year Effect on deferred tax due to income tax rate change - 280,240,962 - 280,240,962 Dividend - - (167,799,127) (167,799,127) Balance as at 31st March 2021 2,671,543,090 1,373,288,469 3,984,004,139 8,028,835,698 (Amounts in brackets indicate deductions) THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st March 2021 Cash Flow Statement 3 months ended 3 months ended Group Company Cash flow from operating activities 31st March 2021 31st March 2020 31st March 2021 31st March 2020 Rs. Rs. Rs. Rs. Profit before tax 546,498,070 177,633,987 262,591,006 130,673,216 Adjustments for : Interest income (50,085,242) (49,462,563) (45,059,851) (42,593,958) Depreciation on property, plant and equipment 107,199,371 104,959,748 98,581,268 92,324,536 Amortisation of intangible assets 5,541,909 5,798,874 3,436,297 3,731,865 Provision for defined benefit obligation 13,894,106 13,405,044 12,489,062 12,000,000 Provision for impairment of trade receivable 1,774,907 5,943,841 1,774,907 5,943,841 Amortisation of lease assets 16,008,154 19,626,470 9,075,418 12,566,374 Interest cost - Lease assets 8,169,743 9,467,839 4,740,094 6,647,911 Gain on disposal of property, plant & equipment & ROU (2,034,791) - (2,034,791) - Operating profit before working capital changes 646,966,227 287,373,240 345,593,410 221,293,784 (Increase) / decrease in inventories (4,800,565) (96,530,833) 5,947,230 (65,103,220) (Increase) / decrease in trade and other receivables (141,798,669) (52,420,337) (21,643,909) (54,573,632) (Increase) / decrease in amounts due from related company 908,109 (688,833) (22,275,187) (67,583,830) Increase / (decrease) in amounts due to related company - (1,591,599) - - Increase / (decrease) in trade and other payables 204,949,176 29,125,974 393,157,204 107,958,843 Cash generated from operating activities 706,224,279 165,267,612 700,778,749 141,991,946 Income Tax paid (2,200,000) (15,845,818) (2,200,000) (15,465,989) Interest cost paid (8,169,743) (9,467,839) (4,740,094) (6,647,911) Defined benefit obligation paid (8,686,685) (3,401,518) (8,686,685) (2,977,916) Net cash flow from operating activities 687,167,850 136,552,437 685,151,970 116,900,129 Cash flow from investing activities Purchase of property, plant and equipment (106,602,835) (120,007,917) (99,825,008) (100,227,302) Purchase of Intangible assets (16,292,880) - (16,292,880) - Proceeds from disposal of property, plant & equipment 3,904,838 - 3,904,838 - Lease paid (7,036,202) (27,731,684) (2,157,627) (16,260,747) Interest income Received 60,804,961 74,573,087 56,374,824 41,985,825 (Investment)/withdrawal in other financial assets (243,630,178)