Ratio Analysis

Contents
Ratio Analysis............................................................................................................................4

Importance of Ratio Analysis.................................................................................................4

Superiority of Ratios over Absolute Figures..........................................................................5

Limitations of Financial Statement Analysis..........................................................................5

Executive Summary...................................................................................................................7

Cable manufacturing Industry....................................................................................................8

Dealer Market.....................................................................................................................9

Institutional Market.............................................................................................................9

Export Market.....................................................................................................................9

PoIr and Energy Market......................................................................................................9

Building Contractor................................................................................................................9

Original Equipment Manufacturers......................................................................................10

Competitor Analysis.................................................................................................................11

Profitability Analysis............................................................................................................11

Liquidity Analysis................................................................................................................12

Efficiency Analysis...............................................................................................................13

Capital Structure Analysis....................................................................................................14

Investor Ratio Analysis.........................................................................................................15

Conclusion................................................................................................................................17

List of References....................................................................................................................18

Appendices...............................................................................................................................19

Appendix 1 – ACL Cables PLC : Income Statement and Statement of Financial Position. 19

Appendix 02-Kelani Cables PLC:Income Statement and Statement of Financial Position. 22

Appendix 03- Sierra Cables PLC:Income Statement and Statement of Financial Position. 25
Ratio Analysis
Ratio is a fraction whose numerator is the antecedent and denominator the consequent.

It is simply an expression of one number in terms of another. It may also be defined as the
relationship or proportion that one amount bears to another, the first number being the
numerator and the latter the denominator.

Ratio may be expressed in different forms, such as:

(i) Pure ratio: e.g., a ratio between Debt and Equity, say, 1:1;

(ii) Ratio which refers to ratios ascertained with reference to time period, e.g., Working
Capital Turnover Ratio 3 times a year;

(iii) Percentage: e.g.. Net Profit is 20% on sales.

Importance of Ratio Analysis

Accounting ratios show the inter-relationship that exists among the various items found in
the Financial Statement. We are therefore equally useful for internal management, potential
inventors, investors and insiders, and so on.

Ratios are the best tool to measure a company's competitiveness, solvency, productivity, and
performance in management. That's why the role of accounting ratios is very critical in
enhancing management performance, reducing excessive borrowing, and increasing the rate
of income, etc.

(A) Helps assess the possible casual relationship between different items by evaluating and
scrutinizing the previous result.

(B) The equations obtained from the review and evaluation of the past results allow the
management to prepare budgets, devise strategies and execute future action plans and thus
help to harmonize the different budget planning products as a reference.

(C) It helps to take into account the time dimension by analyzing the trend, i.e. whether the
company is improving or deteriorating over a number of years, which the trend analysis can
easily be studied. So the analyst can make a comparison without any difficulty and see if the
ratio is high or not.

(d) It throws light on the degree of efficiency of the management and utilization of the
assets and that is why it is called surveyor of efficiency.

(e) This helps to make an inter-firm distinction either between a company's different
departments or between two businesses operating in the same business types or two
separate days between the same company. Therefore, the comparative comparison between
the average ratio of the sector and the ratio of each business unit can be made possible.

(f) Short-term liquidity status, i.e. whether or not the company can sustain its short-term
maturing commitments, can be readily understood through the implementation of liquidity
ratios. Around the same time, debt or productivity ratios may also be used to calculate the
long-term solvency position. Thus, the ratio helps an invaluable aid to the users of Financial
Statements.

Superiority of Ratios over Absolute Figures

It is a well-known fact that a firm's financial health can not be determined simply by
studying and scanning the absolute figures contained in the conventional form of financial
statements viz. Revenue Statement and Balance Sheet, the same can only be done if the
absolute figures are further analyzed in terms of the ratios that can be properly assessed.
That is why, ratio analysis has taken an important role in the field of Managerial Accounting.
To illustrate why and how the ratios can be more meaningful and significant than the
absolute figures.

Limitations of Financial Statement Analysis

Analysis of the ratio using financial statements includes limitations related to accounting,
stock market and management. These limits leave the remaining questions on the company
to analysts.

First of all, ratio analysis is hampered by potential limitations with accounting and the data in
the financial statements themselves. This can include errors as well as accounting
mismanagement, which involves distorting the raw data used to derive financial ratios.
While accounting measures may have more external standards and oversights than many
other ways of benchmarking companies, this is still a limit.

Ratio analysis using financial statements as a tool for performing stock valuation can be
limited as well. The efficient-market hypothesis (EMH), for example, asserts that financial
markets are “informationally efficient. ” In consequence of this, one cannot consistently
achieve returns in excess of average market returns on a risk-adjusted basis, given the
information available at the time the investment is made. While the weak form of this
hypothesis argues that there can be a long run benefit to information derived from
fundamental analysis, stronger forms argue that fundamental analysis like ratio analysis will
not allow for greater financial returns.

In another view on stock markets, technical analysts argue that sentiment is as much if not
more of a driver of stock prices than is the fundamental data on a company like its financials.
Behavioral economists attribute the imperfections in financial markets to a combination of
cognitive biases such as overconfidence, overreaction, representative bias, information bias,
and various other predictable human errors in reasoning and information processing. These
audiences also see limits to ratio analysis as a predictor of stock market returns.

At the management and investor level, ratio analysis using financial statements can also
leave out a number of important aspects of a firm’s success, such as key intangibles, like
brand, relationships, skills, and culture. These are primary drivers of success over the longer
term even though they are absent from conventional financial statements.

Other disadvantages of this type of analysis is that if used alone it can present an overly
simplistic view of the company by distilling a great deal of information into a single number
or series of numbers. Also, changes in the information underlying ratios can hamper
comparisons across time and inconsistencies within and across the industry can also
complicate comparisons.
Executive Summary
The main aim of this assignment is to carry out financial performance analysis for public
quoted company and further it includes competitor analysis on two industry peers.

To carry out the financial performance ACL cables PLC selected as the main organization
while Sierra Cables PLC and Kelani Cables PLC selected as industry peers. This report gives
brief introduction of the main company and the nature of the business and mainly focusing
on the financial analysis of three companies.

Financial analysis section I have used ratio analysis to analyze the financial performance of
the companies and compared it with the main company and selected peer companies. For
the analysis past five years financial data gathered from the each company annual reports.

Latter part of the report discuss on the findings of the study, recommendations, limitations
and conclusion.
Cable manufacturing Industry
Cable manufacturing and selling business in Sri Lanka is largely dominated by local
companies. With the intention of protecting local cable manufacturers, Sri Lankan
government has introduced an additional duty of 28% for cable imports. Any importer must
import and trade cables by paying additional duty of 28%. Market size is proximately 12
billion in Sri Lankan Rupees and the volume is 7000 Metric Tons per annum. All six
companies are situated in the Istern Province and 2500 direct employees are depending on
the cable industry in Sri Lanka. Due to government policies to protect local manufacturers,
they are dominating the market and few imports are available. Imported volumes are
negligible when compare with the large local volumes. Except few players, all other
manufacturers are manufactured cables in accordance with the Sri Lankan Standards.

As ACL Cables and Kelani Cables are in the export market, they manufacture their cables
being consistent with the British and Australian Standards. Cable industry was grown by 9%
while industry was maintaining growth rate of 8% in the year 2010 as per the abstract of
secondary statistical sources used by the company for market size justifications. Usually it is
calculated the market t size based on copper importation to Sri Lanka as the main intelligent
source. Usually it is reported that initial investment and the lack of expertise in relation to
the industry practices as main barriers to enter to the market

Overview of Market Competition in Cable Market of Sri Lanka ACL Cables PLC- ACL Cables
PLC established in 1962 as the pioneer in the cable industry in Sri Lanka. Their largest export
markets are India, Australia, Maldives, Bangladesh and African countries. ACL holds the SLS
product certifications from Sri Lanka Standards Institutions for its products. Kelani Cables
PLC-Kelani holds a 32% market share. Kelani Cables Ire founded in 1969 and in1973, Kelani
was incorporated as a quoted public liability company and manufacture poIr cables. Kelani
has been recognized a fast-developing cable manufacturing company in Sri Lanka and they
are the pioneer in Sri Lanka’s wire drawing industry. They are also in the export market and
mainly exporting to Maldives, Bangladesh and India. Sierra Cables-Sierra was established in
1978 and has grown up to the third level in the Sri Lankan market. They are an ISO9001
certified organization and all products are manufactured in accordance with Sri Lankan
Standards. Now Sierra is competing in pricing and targeting higher volumes with low
margins. Other Manufacturers-Kamal Cable, Ruhunu Cable and Orange Cable are small
players in the market. Orange brand is a very strong brand name as they hold strong position
in switch & socket market and the lighting market in Sri Lanka. Kamal Cables and Ruhunu
Cables are also manufacturing their products in accordance with the Sri Lankan standards
and these two brands are not aggressive enough to compete with ACL and Kelani.

Briefing to Customer Segments in Cable Market Total market divided into four segments as
follows;

Dealer Market
this segment has grown exponentially and contributed significantly to the growth of cable
companies. Dealer market consists of 6000 to 7000 Dealers Island wide.

Institutional Market
Institutional market is consisting of all big projects in Government and private sectors. Cable
companies get big volume of sales from this market and prices are very competitive. Most of
the Government and Non-Government orders are purchased on tenders. Standards are a
mandatory requirement in this market, and electrical engineers and the electrical
consultants behave as major influencers in the buying process.

Export Market
Sri Lankan government has introduced incentive scheme for exporters. If any cable
manufacturer exports their cables, they are not liable to pay raw material clearing taxes for
the same. In addition to that, exporter has an advantage of 20% tax on their income.
Government has introduced various types of schemes to motivate manufacturers to go for
export market. Only ACL, Kelani and Alucop are exporting their cables to other countries.

PoIr and Energy Market

All cable manufacturing companies treated this segment in order to cater rapid
electrification programs in the country. Ceylon Electricity Board and the Lanka Electricity
Company are coming under this market segment and goods are purchased through tender
procedures.
Building Contractor
Building contractors are divided into two categories as Government and private contractors.
Cable requirements are prepared by the electrical engineer and when it comes to purchase
decision, Electrical consultant has more authority to select the brand. Availability of full
range of cables, delivery efficiency and previous experience are seriously considered factors
in qualifying suppliers.

Original Equipment Manufacturers

(OEMs) Individuals or organizations that make electrical equipment by using cables are
coming under this category and they are very important to cable manufacturers as their
requirements are very frequent.They are highly concerned on the quality of the cable
because any quality failure will effect to the final product.
Competitor Analysis
For the competitor analysis I have been selected Kelani Cables PLC and Sierra Cables PLC.
According to the figure 1 ACL cables PLC is the market leader followed by Kelani Cables and
Sierra Cables PLC.

Figure 1Cable Manufacturing Industry Revenue Composition

Profitability Analysis
Table 1 Kelani Cables PLC- Profitability Ratios

Profitability Ratios FY14 FY15 FY16 FY17 FY18

Gross Profit Margin 17% 16% 20% 16% 13%
Operating Profit Margin 6% 7% 10% 7% 4%
Net Profit Margin 4% 5% 8% 5% 2%
Return on Equity 9% 12% 16% 11% 5%

25%

20%
Gross Profit Margin
15%
Operating Profit Margin
10% Net Profit Margin
Return on Equity
5%

0%
FY14 FY15 FY16 FY17 FY18
Table 2 Sierra Cables PLC- Profitability Ratios

Profitability Ratios FY14 FY15 FY16 FY17 FY18

Gross Profit Margin 14% 21% 21% 22% 14%
Operating Profit Margin -9% 10% 14% 12% 4%
Net Profit Margin -13% 8% 7% 7% -1%
Return on Equity -21% 18% 13% 16% -2%

30%

20%

10% Gross Profit Margin

Operating Profit Margin
0%
Net Profit Margin
FY14 FY15 FY16 FY17 FY18
-10% Return on Equity
-20%

-30%

By looking at the profitability ratios of competitors I can say that Sieera Cables PLC has
underperformed compared to Kelani Cables PLC and ACL cables PLC. Profitability ratios of
ACL cables PLC and Kelani Cables PLC is much more competitive hoIver ACL cables PLC has
slidely improved financial ratios in comparison to Kelani Cables PLC.

Liquidity Analysis
Table 3 Kelani Cables PLC- Liquidity Ratios

Liquidity Ratios FY14 FY15 FY16 FY17 FY18

Current Ratio 2.35 2.08 2.43 2.33 2.20
Quick Ratio 1.47 1.29 1.68 1.52 1.47

3
2.5

2
Current Ratio
1.5
Quick Ratio
1

0.5
0
FY14 FY15 FY16 FY17 FY18

Table 4 Sierra Cables PLC- Liquidity Ratios

Liquidity Ratios FY14 FY15 FY16 FY17 FY18

Current Ratio 1.24 1.40 1.55 1.32 1.23
Quick Ratio 0.79 0.92 1.04 0.82 0.82

1.5

Current Ratio
1
Quick Ratio
0.5

0
FY14 FY15 FY16 FY17 FY18

Liquidity ratios of Sierra Cables are better than the Kelani Cables PLC and ACL cables PLC.
Both Kelani Cables PLC and ACL cables have maintained excess liquidity and which is not a
good sign because it can use to short term investments rather than having cash in hand
since cash does not generate any return to the company.

Efficiency Analysis
Table 5 Kelani Cables PLC- Efficiency Ratios

Efficiency Ratios FY14 FY15 FY16 FY17 FY18

Inventory Turnover Ratio 3.73 3.48 4.09 3.63 4.17
Debtors’ Turnover Ratio 4.03 3.43 4.20 3.42 3.48
Creditors’ Turnover Ratio 19.32 10.65 29.98 4.47 4.73

35
30
25
Inventory Turnover Ratio
20
Debtors’ Turnover Ratio
15
Creditors’ Turnover Ratio
10
5
0
FY14 FY15 FY16 FY17 FY18

Table 6 Sierra Cables PLC- Efficiency Ratios

Efficiency Ratios FY14 FY15 FY16 FY17 FY18

Inventory Turnover Ratio 3.21 4.45 3.41 2.57 3.06
Debtors’ Turnover Ratio 2.94 3.51 3.29 2.91 2.63
Creditors’ Turnover Ratio 6.69 11.62 5.83 3.71 3.63
 100

80

60 East
West
40
North
20

0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

ACL cables PLC and the two competitors have reported increasing trend in their inventory
turnover ratios. HoIver Kelani Cables PLC is having better inventory turnover ratios in
comparison to ACL cables and Sierra Cables. Debtors’ turnover ratio has increased in Kelani
Cables PLC and ACL cables PLC and Sierra Cables PLC is having declining trend in debtors’
turnover ratio which shows the inefficiencies in debtors’ collection department in each
company. ACL cables PLC is having high creditors’ turnover ratio in comparison to its peers.
High creditors’ turnover implies that company is paying to its creditors in a short time period
which shows inefficiencies in procurement department. By looking at the overall efficiency
performance I can say that Kelani Cables PLC is having better efficiency management tools in
comparison to other two.

Capital Structure Analysis

Table 1 Kelani Cables PLC- Capital Structure Ratios

Capital Structure Ratios FY14 FY15 FY16 FY17 FY18

Gearing Ratio 3% 2% 1% 0% 0%
Debt to Equity Ratio 3% 2% 1% 0% 0%
Interest Coverage Ratio 0.11 0.11 0.02 N/A N/A

100

80

60 East
West
40
North
20

0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Table 7 Sierra Cables PLC- Capital Structure Ratios

Capital Structure Ratios FY14 FY15 FY16 FY17 FY18

Gearing Ratio 12% 12% 8% 4% 5%
Debt to Equity Ratio 14% 13% 9% 4% 5%
Interest Coverage Ratio (0.82) 0.33 0.25 0.30 1.07

100

80

60 East
West
40
North
20

0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

When I looked at the capital structure of the three companies, I can say that all the
companies follow conservative approach to finance their assets which means maintain less
debt or zero debt position. There are pros and cons of having debt in the company but if the
company performs Ill or generating high operating profits it is okay to have debts in their
capital structure because of the tax shield. That mean interests are tax deductible. By
looking at the overall capital structure positions I can say that ACL cables PLC having better
capital structure situation in comparison to its peers.

Investor Ratio Analysis

Table 9 Kelani Cables PLC- Investor Ratios

Investor Ratios FY14 FY15 FY16 FY17 FY18

EPS (LKR) 9.87 14.96 22.88 17.35 8.48
Price (LKR) 80.00 78.00 112.50 117.50 93.00
PE (x) 8.11 5.21 4.92 6.77 10.97
DPS (LKR) 1.50 3.00 4.50 3.50 3.50
Dividend Yield (%) 2% 4% 4% 3% 4%
Dividend Payout Ratio 15% 20% 20% 20% 41%
 140
120 EPS (LKR)
100 Price (LKR)
80 PE (x)
60 DPS (LKR)
40 Dividend Yield (%)
20 Dividend Payout Ratio

0
FY14 FY15 FY16 FY17 FY18

Table 10 Sierra Cables PLC- Investor Ratios

Investor Ratios FY14 FY15 FY16 FY17 FY18

EPS (LKR) -0.54 0.49 0.37 0.50 -0.05
Price (LKR) 1.70 4.00 2.90 3.00 2.20
PE (x) (3.15) 8.16 7.84 6.00 (44.00)
DPS (LKR) 0.00 0.20 0.20 0.25 0.00
Dividend Yield (%) 0% 5% 7% 8% 0%
Dividend Payout Ratio 0% 41% 54% 50% 0%
 100
90
80
70
60 East
50 West
40 North
30
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

By looking at the investor ratios of three companies EPS have been volatile over the past
five years’ time while PE ratio of Sierra cable is negative in FY18 which cannot be
interpreted (Pandey,2012) while ACL cables PLC is trading below its competitors. Kelani
Cables PLC pays high dividend payout ratio in comparison to the other two but high
dividend limit the future growth potential of the company (Ross at.el,2002). Company
needs to have proper dividend distribution policy in order to satisfy investors in both short
and long run. Accordingly overall investor ratio performance of ACL cables PLC is better

than the peer.Conclusion

This report we have carried out comprehensive financial analysis on ACL cables PLC and its
peers namely Kelani Cables PLC and Sierra Cables PLC. According to the analysis we can
conclude that ACL cables PLC perform better than its peers however company needs to
implement new strategies to improve efficiencies in debtors’ collection and improve
negotiation skills with the suppliers of raw material. Further it is recommended to maintain
short term liquidity positions at optimum way rather having excess liquidity leles.

By Looking at the future outlook of the cable manufacturing industry they are mainly
imports their raw materials such as copper and plastics. There is a price increasing trends in
copper and plastics in the world market while Sri Lankan rupee is depreciate at a higher rate.
Therefore company is more susceptible to foreign exchange risk and commodity price risk.
This would negatively affect the profit margins of ACL cables PLC and it is recommended to
reduce risk exposure by entering some hedging strategies.

The main limitation of this analysis is we basically looked at the financial ratios of the
company and it always used the historical data to analyze the performance of the company.
But data does not necessarily reflect the future performance of the company. Further
companies can manipulate the financial data and it would give wrong financial ratios of the
company. Moreover we need to compare both financial and non-financial data when making
investment decisions about companies.
List of References
Atrill, P. (2012). Financial management for decision makers. Harlow: Financial Times Prentice
Hall/Pearson.

Block, S., Hirt, G. and Danielsen, B. (2017). Foundations of Financial Management. 16th ed. New
York: McGraw-Hill Education.

Brooks, R. (2016). Financial management: core concepts. 3rd ed. Boston: Pearson.

Cse.lk. (2018). CSE - Colombo Stock Exchange. [online] Available at:

https://www.cse.lk/home/company-info/ACL.N0000/announcements [Accessed 19 September.
2018].

Cse.lk. (2018). CSE - Colombo Stock Exchange. [online] Available at:

https://www.cse.lk/home/company-info/ACL.N0000/financial [Accessed 19 September. 2018].

Cse.lk. (2018). CSE - Colombo Stock Exchange. [online] Available at

https://www.cse.lk/home/company-info/ACL.N0000/company-profile [Accessed 19 September .
2018].

Pandey, I. M. Financial Management. 1st ed. New Delhi: Vikas, 2012. Print.

Ross, S.A., W, R. and Westerfield, B.J.D. (2002) Fundamentals of corporate finance, alternate edition.
6th edn. Boston, MA: Mcgraw-Hill (Tx).
Appendices

Appendix 1 – ACL Cables PLC : Income Statement and Statement of Financial

Position
Income Statement ('000)
FY14 FY15 FY16 FY17 FY18
Revenue 11,446,86 14,427,236 12,811,22 14,669,73 16,251,90
2 4 5 7
Cost of sales - -
(9,522,92 (11,877,46 (9,754,11 11,427,11 13,620,69
4) 8) 0) 5 1
Gross profit 1,923,938 2,549,768 3,057,114 3,242,620 2,631,216
Other income 27,565 192,604 45,017 52,432 115,694
Distribution costs -843,811 -856,325
(636,653) (747,307) (805,233)
Administrative costs -442,371 -488,165
(342,776) (398,554) (404,309)
Operating Profit 972,074 1,596,511 1,892,589 2,008,870 1,402,420
Finance income 29,669 11,576 98,408 126,612 66,094
Finance Costs -345,637 -447,998
(314,118) (399,296) (350,110)
Net Finance Costs
(284,449) (387,720) (251,702) (219,025) (381,904)
Share of profit of 45,947 54,735 -25,282 36,733
investments -
Profit before income tax
687,625 1,254,738 1,695,622 1,764,563 1,057,249
Income tax expenses -509,124 -294,513
(176,412) (300,651) (426,394)
Profit for the year 95 1,2 1,25 76
511,213 4,087 69,228 5,439 2,736

Profit attributable to : -17% 95% 27%

Owners of the parent 441,495 859,572 1,093,612 1,117,854 697,281
NCI 69,718 94,515 175,616 137,585 65,455
511,213 954,087 1,269,228 1,255,439 762,736

EPS 7.37 14.35 18.26

Adjusted EPS 3.69 7.18 9.13 9.33 5.82
No. of shares 59,894 59,894 59,894 59,894 59,894
Number of shares after 119,787 119,787 119,787 119,787 119,787
subdivision
DPS (LKR) 1.00 1.00 2.00 1.5 1.5

Banlance Sheet
Assets
Non-current Assets
PPE 2,949,216 3,535,210 3,466,497 3,347,709 4,151,266
WIP 49,764 64,127 32,853 31,678 97,469
Investment properties 317,000 493,000 516,000 538,750 638,000
Intangible Assets 14,060 13,689 11,487 9,138 7,704
Prepayments 1,732 1,710 1,688 1,666 1,644
Investment in equity 823,749 301,503 275,286 277,206
accounted investee -
AFS financial Assets 25,832 30,145 31,629 34,211 274,488
Deferred income tax 1,774 3,959
assets - - -
Total N.C.A 3,357,604 4,961,630 4,361,657 4,240,212 5,451,736

Current Assets
Inventories 3,940,054 5,099,276 3,986,770 4,363,337 4,763,792
Trade & Other 3,985,324 4,968,387 4,250,727 5,334,170 6,350,481
Receviables
Advances & Payments 22 22 22 22 22
1,067,31 402,752 466,800
- - 5
Cash & Short-Term 765,469 1,038,758 1,707,305 2,224,971 2,113,345
Deposits
Total C.A 8,690,869 11,106,443 11,012,13 12,325,25 13,694,44
9 2 0
Total Assets 12,048,47 16,068,073 15,373,79 16,565,46 19,146,17
3 6 4 6

Equity & Liabilities

Stated Capital 299,488 299,488 299,488 299,488 299,488
Capital Reserves 1,357,957 1,818,019 1,875,347 1,790,589 2,277,718
General Reserves 1,123,825 1,123,825 1,123,825 1,123,825 1,123,825
AFS Reserves 10,528 4,854 6,752 8,006
(3,739)
Retained Earnings 3,322,179 4,138,163 5,141,742 6,110,597 6,619,568
Equity attributable to 6,099,710 7,390,023 8,445,256 9,331,251 10,328,60
owners of the parent 5
NCI 745,123 870,373 1,026,303 1,135,318 1,245,074
Total Equity 6,844,833 8,260,396 9,471,559 10,466,56 11,573,67
9 9

Non-current liabilities
Retirement benefit 227,933 242,719 253,462 241,241 297,977
liablities
Deferred tax liabilities 210,260 310,450 209,370 269,252 577,689
Interest bearing loans and 77,841 1,232,841 914,591 207,841 350,101
borrowings
Finance Lease
- - -
Total N.C.L 516,034 1,786,010 1,377,423 718,334 1,225,767

Current liablities
Trade and other payables 1,381,692 3,288,814 2,010,090 1,950,217 2,805,971
Income tax liabilities 294,440 463,029 781,919 842,931 809,069
Finance lease obligations
- - -
Interest bearing laons and 3,011,474 2,269,824 1,732,805 2,587,413 2,731,690
borrowings (Loan+OD)
Dividend payable
- - -
Total C.L 4,687,606 6,021,667 4,524,814 5,380,561 6,346,730
Total Liabilities 5,203,640 7,807,677 5,902,237 6,098,895 7,572,497
Total Equity & Liabilities 12,048,47 16,068,073 15,373,79 16,565,46 19,146,17
3 6 4 6

Source: Cse.lk

Appendix 02-Kelani Cables PLC:Income Statement and Statement of Financial

Position
In Millions of LKR except Per FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Share
12 Months Ending 03/31/201 03/31/201 03/31/201 03/31/201 03/31/201
4 5 6 7 8
Revenue 5,231.8 6,204.4 6,619.8 7,122.8 7,994.4
+ Sales & Services Revenue — — — 7,122.8 7,994.4
- Cost of Revenue 4,365.3 5,181.5 5,317.4 5,987.3 6,987.8
+ Cost of Goods & Services — — — 5,987.3 6,987.8
Gross Profit 866.4 1,022.9 1,302.3 1,135.5 1,006.5
+ Other Operating Income 0.8 1.0 12.7 37.2 9.8
- Operating Expenses 527.8 610.8 644.9 691.6 726.1
+ Selling, General & Admin — — 644.9 689.5 726.1
+ Selling & Marketing — — 417.6 439.9 462.6
+ General & Administrative — — 227.3 249.6 263.6
+ Research & Development — — — 0.0 0.0
+ Prov For Doubtful Accts — — — — —
+ Other Operating Expense — — — 2.2 0.0
Operating Income (Loss) 339.5 413.1 670.2 481.1 290.3
- Non-Operating (Income) — — — -14.6 64.9
Loss
+ Interest Expense, Net 37.3 47.3 11.0 — —
+ Interest Expense 41.3 50.9 17.4 — —
- Interest Income 3.9 3.6 6.4 7.9 4.0
+ Foreign Exch (Gain) Loss -15.2 -2.8 -15.8 -41.0 -11.1
+ (Income) Loss from 17.9 10.8 -4.8 -2.9 5.7
Affiliates
 + Other Non-Op (Income) — — — 37.2 74.3
Loss
Pretax Income (Loss), 310.6 445.0 680.6 495.7 225.4
Adjusted
- Abnormal Losses (Gains) 0.0 -78.0 -23.0 -2.2 -26.3
+ Disposal of Assets — — — -2.2 —
+ Other Abnormal Items — — — — -26.3
Pretax Income (Loss), GAAP 310.6 445.0 680.6 497.8 251.7
- Income Tax Expense 95.6 118.9 181.9 119.5 66.9
(Benefit)
Income (Loss) from Cont Ops 215.1 326.1 498.7 378.3 184.8
- Net Extraordinary Losses 0.0 0.0 0.0 0.0 0.0
(Gains)
+ Discontinued Operations — — — 0.0 0.0
+ XO & Accounting — — — 0.0 0.0
Changes
Income (Loss) Incl. MI 215.1 326.1 498.7 378.3 184.8
- Minority Interest 0.0 0.0 0.0 0.0 0.0
Net Income, GAAP 215.1 326.1 498.7 378.3 184.8
           
Basic Weighted Avg Shares 21.8 21.8 21.8 21.8 21.8
Basic EPS, GAAP 9.87 14.96 22.88 17.35 8.48
Dividends per Share 1.50 3.00 4.50 3.50 3.50

In Millions of LKR except Per FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Share
12 Months Ending 03/31/201 03/31/201 03/31/201 03/31/201 03/31/201
4 5 6 7 8
Total Assets          
+ Cash, Cash Equivalents & 439.7 413.9 603.6 498.8 671.7
STI
+ Cash & Cash Equivalents 439.7 413.9 603.6 498.8 671.7
+ ST Investments 0.0 0.0 0.0 0.0 0.0
+ Accounts & Notes Receiv 1,299.7 1,808.3 1,575.0 2,085.5 2,295.5
+ Accounts Receivable, Net 1,299.7 1,808.3 1,575.0 2,085.5 2,295.5
+ Notes Receivable, Net — — — 0.0 0.0
+ Inventories 1,171.0 1,488.2 1,299.6 1,648.2 1,676.3
+ Raw Materials 127.5 310.6 190.3 341.2 344.9
+ Work In Process 236.6 289.2 192.9 301.3 268.5
+ Finished Goods 786.0 866.5 903.7 1,006.4 1,065.4
+ Other Inventory 20.9 21.8 12.7 -0.7 -2.5
 + Other ST Assets 233.2 226.9 692.6 485.1 424.8
+ Prepaid Expenses — — — — 14.3
+ Derivative & Hedging — — — — 0.0
Assets
+ Taxes Receivable — — — 246.9 394.9
+ Misc ST Assets — — — 238.1 15.6
Total Current Assets 3,143.6 3,937.3 4,170.8 4,717.5 5,068.2
+ Property, Plant & Equip, 718.8 922.2 679.4 663.1 852.7
Net
+ Property, Plant & Equip 1,112.9 1,345.5 1,182.3 1,239.7 1,420.1
- Accumulated Depreciation 394.1 423.3 502.9 576.6 567.3
+ LT Investments & 0.0 0.0 231.0 253.8 280.0
Receivables
+ LT Investments — — — 253.8 280.0
+ Other LT Assets 10.4 12.0 13.5 14.2 20.0
+ Total Intangible Assets 0.0 1.1 0.0 0.0 0.0
+ Goodwill 0.0 0.0 0.0 0.0 0.0
+ Other Intangible Assets 0.0 1.1 0.0 0.0 0.0
+ Derivative & Hedging — — — — 0.0
Assets
+ Investments in Affiliates 10.4 10.8 13.5 14.2 20.0
+ Misc LT Assets 0.0 0.0 0.0 0.0 0.0
Total Noncurrent Assets 729.2 934.1 923.9 931.0 1,152.8
Total Assets 3,872.9 4,871.4 5,094.6 5,648.6 6,221.0
           
Liabilities & Shareholders'          
Equity
+ Payables & Accruals 226.0 486.5 177.4 1,709.0 1,893.1
+ Accounts Payable 226.0 486.5 177.4 1,340.2 1,477.6
+ Accrued Taxes — — — 257.8 308.5
+ Interest & Dividends — — — 11.1 12.1
Payable
+ Other Payables & — — — 100.0 94.9
Accruals
+ ST Debt 283.7 544.6 153.2 228.4 310.4
+ ST Borrowings 283.7 544.6 153.2 228.4 310.4
+ ST Capital Leases 0.0 0.0 0.0 0.0 0.0
+ Other ST Liabilities 830.1 864.0 1,382.6 86.5 99.7
+ Deferred Revenue — — — 0.0 0.0
+ Derivatives & Hedging — — — — 0.0
+ Misc ST Liabilities 830.1 864.0 1,382.6 86.5 99.7
Total Current Liabilities 1,339.7 1,895.1 1,713.2 2,023.9 2,303.2
+ LT Debt 77.8 55.8 31.8 7.8 11.1
+ LT Borrowings 77.8 55.8 31.8 7.8 11.1
+ LT Capital Leases 0.0 0.0 0.0 0.0 0.0
+ Other LT Liabilities 159.7 207.3 156.7 142.3 219.8
+ Accrued Liabilities — — — 0.0 0.0
+ Pension Liabilities — — — 83.3 95.0
+ Deferred Revenue — — — 0.0 0.0
+ Deferred Tax Liabilities 45.8 45.8 73.0 59.0 124.8
+ Derivatives & Hedging — — — — 0.0
+ Misc LT Liabilities 113.9 161.4 83.7 0.0 0.0
Total Noncurrent Liabilities 191.7 217.3 188.5 150.1 230.9
Total Liabilities 1,531.5 2,112.3 1,901.7 2,174.0 2,534.0
+ Preferred Equity and 0.0 0.0 0.0 0.0 0.0
Hybrid Capital
+ Share Capital & APIC 218.0 218.0 218.0 218.0 218.0
- Treasury Stock 0.0 0.0 0.0 0.0 0.0
+ Retained Earnings 1,515.2 1,809.5 2,243.4 2,525.0 2,632.9
+ Other Equity 608.14 731.59 731.59 731.59 836.09
Equity Before Minority 2,341.4 2,759.1 3,192.9 3,474.6 3,686.9
Interest
+ Minority/Non Controlling 0.0 0.0 0.0 0.0 0.0
Interest
Total Equity 2,341.4 2,759.1 3,192.9 3,474.6 3,686.9
Total Liabilities & Equity 3,872.9 4,871.4 5,094.6 5,648.6 6,221.0
Source: Bloomberg

Appendix 03- Sierra Cables PLC:Income Statement and Statement of Financial

Position
In Millions of LKR except Per FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Share
12 Months Ending 03/31/201 03/31/201 03/31/201 03/31/201 03/31/201
4 5 6 7 8
Revenue 2,284.9 3,482.5 3,036.0 4,044.4 4,069.1

+ Sales & Services Revenue — — — 4,044.4 4,069.1

- Cost of Revenue 1,967.5 2,740.6 2,405.3 3,165.6 3,498.6

 + Cost of Goods & Services — — — 3,165.6 3,498.6

Gross Profit 317.4 742.0 630.7 878.9 570.5

+ Other Operating Income 32.4 3.5 97.4 26.8 10.4

- Operating Expenses 565.7 387.2 304.3 406.9 412.2

+ Selling, General & Admin — 295.1 299.7 395.1 407.1

+ Selling & Marketing — 201.5 188.8 238.2 250.3

+ General & Administrative — — 110.9 156.9 156.8

+ Research & Development — — — 0.0 0.0

+ Prov For Doubtful Accts — — — — —

+ Other Operating Expense — — — 11.8 5.2

Operating Income (Loss) -215.9 358.3 423.8 498.7 168.7

- Non-Operating (Income) — — — 151.1 175.8

Loss
+ Interest Expense, Net 174.9 116.3 101.8 151.7 180.7

+ Interest Expense 176.1 118.4 104.5 152.1 181.0

- Interest Income 1.2 2.1 2.8 0.4 0.3

+ Other Investment (Inc) — — — -0.1 -0.3

Loss
+ Foreign Exch (Gain) Loss -7.3 -0.5 — 0.0 0.0

+ (Income) Loss from 0.1 0.2 -0.3 -0.9 -4.9

Affiliates
+ Other Non-Op (Income) — — — 0.4 0.3
Loss
Pretax Income (Loss), -376.3 358.9 273.4 347.7 -7.1
Adjusted
 - Abnormal Losses (Gains) 0.0 0.0 46.7 0.0 0.0

Pretax Income (Loss), GAAP -376.3 358.9 273.4 347.7 -7.1

- Income Tax Expense -69.8 108.7 78.5 80.2 16.1

(Benefit)
Income (Loss) from Cont Ops -306.5 250.2 194.9 267.4 -23.2

- Net Extraordinary Losses 0.0 0.0 1.8 2.0 15.6

(Gains)
+ Discontinued Operations — — — 2.0 15.6

+ XO & Accounting — — — 0.0 0.0

Changes
Income (Loss) Incl. MI -306.5 250.2 193.1 265.5 -38.7

- Minority Interest -15.6 -12.3 -6.8 -5.8 -11.3

Net Income, GAAP -290.9 262.5 199.9 271.3 -27.4

Basic Weighted Avg Shares 537.5 537.5 537.5 537.5 537.5

Basic EPS, GAAP -0.54 0.49 0.37 0.50 -0.05

Dividends per Share 0.00 0.20 0.20 0.25 0.00

In Millions of LKR except Per FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Share
12 Months Ending 03/31/201 03/31/201 03/31/201 03/31/201 03/31/201
4 5 6 7 8
Total Assets          

+ Cash, Cash Equivalents & 10.4 43.0 80.2 78.8 316.4

STI
+ Cash & Cash Equivalents 10.4 43.0 80.2 78.8 316.4

+ ST Investments 0.0 0.0 0.0 0.0 0.0

 + Accounts & Notes Receiv 776.0 991.0 922.5 1,388.7 1,547.7

+ Accounts Receivable, Net 776.0 991.0 922.5 1,388.7 1,547.7

+ Notes Receivable, Net — — — 0.0 0.0

+ Inventories 612.0 615.8 705.1 1,233.9 1,144.4

+ Raw Materials 89.7 100.7 120.7 469.0 271.5

+ Work In Process 88.2 91.9 132.6 294.5 207.7

+ Finished Goods 370.3 417.1 474.1 491.7 682.6

+ Other Inventory 63.9 6.1 -22.3 -21.2 -17.3

+ Other ST Assets 280.6 143.5 403.0 561.0 410.3

+ Assets Held-for-Sale — — — 166.6 148.7

+ Taxes Receivable — — — 0.0 9.1

+ Misc ST Assets — — — 394.3 252.6

Total Current Assets 1,679.0 1,793.3 2,110.8 3,262.4 3,418.9

+ Property, Plant & Equip, 1,221.2 1,251.3 1,100.4 1,114.1 1,494.6

Net
+ Property, Plant & Equip 1,407.1 1,516.8 1,415.0 1,512.3 1,980.3

- Accumulated Depreciation 186.0 265.5 314.6 398.2 485.6

+ LT Investments & 113.0 14.0 44.8 29.1 60.9

Receivables
+ LT Investments — — — 29.1 60.9

+ Other LT Assets 4.8 34.3 4.0 10.5 45.7

+ Total Intangible Assets 4.2 1.6 1.3 6.9 8.9

 + Goodwill 0.0 0.0 0.0 0.0 0.0

+ Other Intangible Assets 4.2 1.6 1.3 6.9 8.9

+ Investments in Affiliates 2.7 2.5 2.7 3.6 36.8

+ Misc LT Assets -2.1 30.3 0.0 0.0 0.0

Total Noncurrent Assets 1,338.9 1,299.6 1,149.2 1,153.7 1,601.3

Total Assets 3,017.9 3,092.9 3,260.0 4,416.0 5,020.2

           

Liabilities & Shareholders'          

Equity
+ Payables & Accruals 294.0 235.9 412.3 1,046.1 1,018.3

+ Accounts Payable 294.0 235.9 412.3 853.6 963.7

+ Accrued Taxes — — — 71.8 7.4

+ Other Payables & — — — 120.7 47.1

Accruals
+ ST Debt 194.9 131.0 170.9 205.0 467.7

+ ST Borrowings 191.4 129.4 170.9 98.1 238.2

+ ST Capital Leases 3.5 1.6 0.0 0.0 0.0

+ Current Portion of LT — — — 106.9 229.5

Debt
+ Other ST Liabilities 869.4 913.7 774.8 1,212.8 1,300.9

+ Deferred Revenue — — — 0.0 0.0

+ Misc ST Liabilities 869.4 913.7 774.8 1,212.8 1,300.9

Total Current Liabilities 1,358.2 1,280.6 1,358.0 2,463.9 2,786.9

 + LT Debt 185.6 188.5 142.3 71.5 97.6

+ LT Borrowings 182.8 187.5 142.3 71.5 97.6

+ LT Capital Leases 2.8 1.1 0.0 0.0 0.0

+ Other LT Liabilities 191.8 298.4 213.1 201.0 304.4

+ Accrued Liabilities — — — 0.0 0.0

+ Pension Liabilities — — — 27.8 41.5

+ Deferred Revenue — — — 0.0 0.0

+ Deferred Tax Liabilities 84.8 135.8 186.9 173.2 262.9

+ Misc LT Liabilities 107.0 162.6 26.2 0.0 0.0

Total Noncurrent Liabilities 292.6 351.1 355.4 272.5 402.0

Total Liabilities 1,650.8 1,631.7 1,713.4 2,736.3 3,188.9

+ Preferred Equity and 0.0 0.0 0.0 0.0 0.0

Hybrid Capital
+ Share Capital & APIC 894.6 894.6 894.6 894.6 894.6

+ Common Stock — — — 894.6 894.6

- Treasury Stock 0.0 0.0 0.0 0.0 0.0

+ Retained Earnings 40.5 186.9 280.4 418.9 366.2

+ Other Equity 420.75 368.92 367.63 368.10 562.04

Equity Before Minority 1,355.8 1,450.4 1,542.6 1,681.5 1,822.8

Interest
+ Minority/Non Controlling 11.3 10.8 4.0 -1.8 8.4
Interest
Total Equity 1,367.1 1,461.2 1,546.6 1,679.7 1,831.2
Total Liabilities & Equity 3,017.9 3,092.9 3,260.0 4,416.0 5,020.2

Source: Bloomberg