PROVISIONAL CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED 31 ST DECEMBER 2015 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 December 2015 Board of Directors Dr. Sarath PARANAVITANE - Chairman Mr. Sapugahawattage Tissa NANAYAKKARA - Deputy Chairman (Resigned on 6th November 2015) Ven. Thiniyawala PALITHA THERO Dr. Harsha Hemal GUNASEKARA (Resigned on 6th November 2015) Prof. Menaka Dilani Samarawickrema LOKUHETTY Dr. Rohan Lalith WIJESUNDERA Mr. Lintotage Udaya Damien FERNANDO Prof. Serosha Mandika WIJEYARATNE (Resigned on 6th November 2015) Prof. Hithanadura Asita DE SILVA (Resigned on 6th November 2015) Mr.Majuwanage Samantha PERERA Mr. Daljit SINGH Mr. Malvinder Mohan SINGH (Resigned on 26th November 2015) Mr.Parthasarathy RAGHUNATH - Alternate Director to Mr. Malvinder Mohan Singh (Ceased to be an Alternate Director on 26th November 2015) Mr Karthik Rajagopal ( Resigned on 26th November 2015) (Alternate Director to Mr Daljt Singh) Mr.Keith Damien Bernard (Appointed on 10th November 2015) Mrs.Umashanthiee Rajamantri (Appointed on 10th November 2015) Dr.Anil Abeywickrama (Appointed on 10th November 2015) Mr.Asendra Chaminda Siriwardena (Appointed on 10th November 2015) Mr.Kalyana Sundaram Srivastava (Appointed on 27th November 2015) Mr.Ravi Sachdev (Appointed on 27th November 2015) (Alternate Director to Mr. Daljit SINGH ) Mr.Parthasarathy RAGHUNATH (Appointed on 27th November 2015) (Alternate Director to Mr. Kalyana Sundaram Srivastava) 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 December 2015 Statement of Financial Position Group Company As at, 31st Dec 2015 31st Dec 2014 31st Dec 2015 31st Dec 2014 Audited Audited Rs. Rs. Rs. Rs. ASSETS Non Current Assets Property, Plant & Equipment 3,649,506,890 3,659,633,440 3,336,320,388 3,341,179,985 Intangible Assets 61,000,763 32,454,593 33,852,110 8,270,712 Advance Lease Premium 175,442,855 161,579,772 175,442,855 161,579,772 Investment Property - - 102,000,000 98,408,000 Investment in Subsidiary - - 414,000,020 350,000,020 3,885,950,508 3,853,667,805 4,061,615,373 3,959,438,489 Current Assets Inventories 272,338,834 307,431,533 227,568,161 250,746,754 Trade & Other Receivables 439,853,827 477,148,511 411,435,889 461,505,664 Amounts due from Related Parties 5,433,866 5,627,096 74,890,167 71,764,397 Income Tax Receivable - 34,150,926 - 34,250,940 Cash and Cash Equivalents 1,739,605,443 994,938,967 1,645,649,978 988,826,605 Total Current Assets 2,457,231,971 1,819,297,033 2,359,544,196 1,807,094,360 Total Assets 6,343,182,478 5,672,964,838 6,421,159,569 5,766,532,849 EQUITY AND LIABILITIES Equity Stated Capital 2,671,543,090 2,671,543,090 2,671,543,090 2,671,543,090 Revaluation Reserve 1,036,484,466 1,032,574,497 1,000,874,603 996,964,634 Retained Profit 1,284,025,150 779,160,970 1,272,084,067 882,016,453 Total Equity 4,992,052,706 4,483,278,557 4,944,501,760 4,550,524,177 Non Current Liabilities Retirement Benefit Obligations 118,241,007 105,319,751 106,174,862 95,957,847 Deferred Tax Liabilities 345,530,570 314,105,948 347,679,208 310,387,195 Total Non Current Liabilities 463,771,577 419,425,699 453,854,070 406,345,042 Current Liabilities Amounts due to Related Parties 28,480,937 13,014,110 4,769,075 4,769,075 Trade & Other Payables 659,341,286 559,516,361 826,555,510 629,121,883 Income Tax Payable 20,247,963 - 19,256,304 - Bank Overdraft (Book Overdraft) 179,288,008 197,730,111 172,222,849 175,772,672 Total Current Liabilities 887,358,194 770,260,582 1,022,803,738 809,663,630 Total Liabilities 1,351,129,771 1,189,686,281 1,476,657,808 1,216,008,672 Total Equity & Liabilities 6,343,182,478 5,672,964,838 6,421,159,569 5,766,532,849 The figures as at 31st December 2015 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. 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. Director Director Date: 24th February 2016 Colombo (Amounts in brackets indicate deductions) THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st December 2015 Statement of Comprehensive Income Group Company For the 12 months ended, 31st Dec 2015 31st Dec 2014 31st Dec 2015 31st Dec 2014 Audited Audited Rs. Rs. Rs. Rs. Revenue 5,514,070,918 4,753,588,586 4,810,837,891 4,491,554,590 Cost of services (2,313,872,997) (2,058,866,017) (1,990,191,486) (1,938,626,016) 3,200,197,922 2,694,722,569 2,820,646,406 2,552,928,573 Other operating income 35,967,812 44,423,418 44,840,035 60,713,918 Staff costs (1,459,092,373) (1,293,174,691) (1,301,608,223) (1,206,734,222) Depreciation on property, plant and equipment (163,982,638) (151,596,755) (147,773,753) (142,739,622) Other operating expenses (802,523,591) (842,458,863) (712,290,173) (759,231,812) Profit from Operations 810,567,131 451,915,678 703,814,291 504,936,836 Finance income 156,319,775 70,050,613 153,588,980 67,773,826 Profit before tax 966,886,906 521,966,291 857,403,272 572,710,661 Income tax (expense) / release (109,283,746) (11,857,307) (114,259,494) (7,305,142) Profit for the year 857,603,160 510,108,984 743,143,778 565,405,520 Other comprehensive Income Surplus on revaluation of land - 42,226,851 - 42,226,851 Defferred tax on depreciation of revalued assets 3,909,969 4,102,846 3,909,969 3,909,969 Actuarial gains / (losses) on defined benefit plan 857,138 (9,231,382) 468,204 (9,231,382) Tax on actuarial gains / (losses) (56,184) 1,107,765 (56,184) 1,107,766 Other comprehensive income net of tax 4,710,923 38,206,080 4,321,989 38,013,204 Total comprehensive income for the year 862,314,083 548,315,064 747,465,766 603,418,723 Basic earnings per share 3.83 2.28 3.32 2.53 Dividend per share 1.50 0.50 1.50 0.50 (Amounts in brackets indicate deductions) THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st December 2015 Statement of Comprehensive Income Group Company For the 03 months ended, 31st Dec 2015 31st Dec 2014 31st Dec 2015 31st Dec 2014 Audited Audited Rs. Rs. Rs. Rs. Revenue 1,484,389,071 1,330,552,297 1,284,098,062 1,193,401,717 Cost of services (624,825,054) (553,235,403) (501,853,993) (480,164,953) 859,564,017 777,316,894 782,244,068 713,236,764 Other operating income 5,859,642 15,541,271 14,920,531 40,709,168 Staff costs (401,674,220) (349,346,597) (375,759,466) (292,757,883) Depreciation on property, plant and equipment (34,371,142) (40,385,524) (37,866,230) (35,040,391) Other operating expenses (234,566,097) (208,295,669) (207,229,536) (201,999,551) Profit from Operations 194,812,199 194,830,375 176,309,367 224,148,107 Finance income 51,592,411 19,435,823 49,906,476 19,269,487 Profit before tax 246,404,610 214,266,198 226,215,843 243,417,594 Income tax expense (19,244,284) 26,649,616 (24,340,118) 30,819,532 Profit for the period 227,160,326 240,915,814 201,875,726 274,237,127 Other comprehensive Income Surplus on revaluation of land - 42,226,851 - 42,226,851 Defferred tax on depreciation of revalued assets 3,909,969 4,102,846 3,909,969 3,909,969 Actuarial gains / (losses) on defined benefit plan 857,138 (9,231,382) 468,204 (9,231,382) Tax on actuarial gains / (losses) (56,184) 1,107,765 (56,184) 1,107,766 Other comprehensive income net of tax 4,710,923 38,206,080 4,321,989 38,013,204 Total comprehensive income for the period 231,871,249 279,121,894 206,197,714 312,250,330 Basic earnings per share 1.02 1.08 0.90 1.23 Dividend per share 1.00 0.50 1.00 0.50 (Amounts in brackets indicate deductions) THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st December 2015 Company Statement of Changes in Equity Stated Revaluation Retained Total capital reserve earning / (loss) Balance as at 1 January 2014 2,671,543,090 1,020,435,186 366,993,263 4,058,971,539 Profit for the period (Jan 2014 - December 2014) - - 565,405,520 565,405,520 Other comprehensive income for the year (23,470,552) 61,483,755 38,013,203 Dividend Paid (111,866,085) (111,866,085) Balance as at 31st December 2014 2,671,543,090 996,964,634 882,016,453 4,550,524,177 Balance as at 1 January 2015 2,671,543,090 996,964,634 882,016,453 4,550,524,177 Profit for the period (Jan 2015 - December 2015) 743,143,778 743,143,778 Supper gain tax adjustments (17,889,930) (17,889,930) Other comprehensive income for the year 3,909,969 412,020 4,321,989 Dividend Paid - - (335,598,254) (335,598,254) Balance as at 31st December 2015 2,671,543,090 1,000,874,603 1,272,084,067 4,944,501,760 Group Statement of Changes in Equity Stated Revaluation Retained Total capital reserve earning / (loss) Balance as at 1 January 2014 2,671,543,090 1,020,435,186 354,851,302 4,046,829,578 Profit for the period (Jan 2014 - December 2014) - - 510,108,984 510,108,984 Other comprehensive income for the year 12,139,311 26,066,769 38,206,080 Dividend Paid (111,866,085) (111,866,085) Balance as at 31st December 2014 2,671,543,090 1,032,574,497 779,160,970 4,483,278,557 Balance as at 1 January 2015 2,671,543,090 1,032,574,497 779,160,970 4,483,278,557 Profit for the period (Jan 2015 - December 2015) - - 857,603,160 857,603,160 Supper gain tax adjustments (17,941,680) (17,941,680) Other comprehensive income for the year 3,909,969 800,954 4,710,923 Dividend Paid - - (335,598,254) (335,598,254) Balance as at 31st December 2015 2,671,543,090 1,036,484,466 1,284,025,150 4,992,052,706 (Amounts in brackets indicate deductions) THE LANKA HOSPITALS CORPORATION PLC Provisional Consolidated Financial Statements for the Quarter ended 31st December 2015 Cash Flow Statement 12 months ended 12 months ended Group Company CASH FLOW FROM OPERATING ACTIVITIES 31st Dec 2015 31st Dec 2014 31st Dec 2015 31st Dec 2014 Rs.