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REGNIS (LANKA) PLC - PQ 191
INTERIM FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2010
Interim Financial Statements For the Year Ended 31st December 2010

BALANCE SHEET

Group Dec 2010 Note Rs'000 Company Dec 2010 Rs'000 Company
As at 31st December ASSETS Non-Current Assets Property, Plant & Equipment Intangible Assets Investments in Subsidiary Long Term Investment Other Receivable Deferred Tax Asset Current Assets Inventories Trade and Other Receivables Income Tax Recoverable Other Taxes Recoverable Amounts Due from Related Companies Cash and Cash Equivalents Total Current Assets Total Assets EQUITY AND LIABILITIES Equity Stated Capital Revaluation Reserves Retained Earnings Total Equity Non-Current Liabilities Deferred Tax Liability Retirement Benefit Obligation Interest bearing Loans and Borrowings 8

2009 Rs'000

489,9,000 5,782 504,920 412,708 124,141 30,989 5,259 573,097 1,078,018
422,547 50,000 9,000 3,130 484,677 321,694 91,947 16,080 15,488 5,193 450,403 935,080
323,096 9,000 6,686 36,075 374,857 264,704 174,897 19,766 16,080 3,098 478,545 853,402
100,123 255,677 132,202 488,003
100,123 255,677 122,000 477,800
100,123 164,507 74,875 339,506
24,430 44,071 47,250 115,751
24,430 44,071 12,000 80,501

40,290 36,000 76,290

Current Liabilities Interest Bearing Loans and Borrowings Amounts Due to Related Companies Trade and Other Payable Income Tax Payable Dividends Payable Total Liability Total Equity and Liabilities Net Assets per Share
263,794 7,674 188,328 14,474,264 590,015 1,078,018 101.06
248,507 7,568 107,135 13,376,778 457,279 935,080 98.94
292,264 5,241 139,437,606 513,897 853,402 70.31
I certify that the financial statements of the company comply with the requirements of the Companies Act No 7 of 2007 (sgd) A.C.M.Irzan Chief Financial Officer Figures in brackets indicate deductions.
The above figures are provisional and subject to Audit.
The Board of directors is responsible for the preperation and presentation of these financial statements. Signed for and on behalf of the board
(Sgd)V.G.K. Vidyaratne Director 14th February 2011 Colombo
(Sgd) H.A.Pieris Director

REGNIS (LANKA) PLC /02

INCOME STATEMENT

GROUP QUARTER ENDING

COMPANY QUARTER ENDING
COMPANY QUARTER ENDING COMPANY VARIANCE

GROUP YEAR ENDING

COMPANY YEAR ENDING
COMPANY YEAR ENDING COMPANY VARIANCE

31-Dec-10 RS'000

31-Dec-09 RS'000

RS'000

Revenue Cost of Sales Gross Profit Other Operating Income Administrative Expenses
557,897 (493,462) 64,(1,532) (2,635) (8,194) 194 (8,001) 52,332 (30,519)
515,079 (463,821) 51,(3,348) (1,985) (6,635) (6,635) 39,354 (29,619)
384,710 (328,809) 55,(280) (2,516) (11,310) (11,310) 42,272 (16,247)
130,369 (135,012) (4,644) (413) (3,068) 531 4,675 4,675 (2,918) (13,372)
2,037,320 (1,816,631) 220,(14,192) (11,195) (49,628) 2,313 (47,316) 148,289 (76,475)
1,994,502 (1,786,990) 207,(12,986) (10,545) (47,096) (47,096) 137,187 (75,575)
1,346,241 (1,188,135) 158,106 1,846 (8,237) (9,093) (66,741) (66,741) 75,879 (28,010)
648,261 (598,856) 49,405 (1,544) (4,748) (1,452) 19,646 19,646 61,307 (47,565)
Selling & Distribution Expenses Finance Cost Finance Income Net Finance Cost Profit Before Taxation Income Tax Expense Profit for the year attributable to equity holders of the company

21,813

26,025

(16,291)

71,814

61,611

47,869

13,742

Earnings per Share
Accounting policies of Interim Accounts are the same as in 2009 Annual Financial Statements. Figures in brackets indicate deductions. The above figures are provisional and subject to Audit.
Share Prices Highest Lowest Last Traded Price
4th Quarter of 2010 Rs. Rs. Rs. 145.00 120.00 124.50
4th Quarter of 2009 Rs. Rs. Rs. 74.00 41.75 66.75

Year ended 31st Dec 2010 Rs. Rs. Rs. 145.00 65.00 124.50
Year ended 31st Dec 2009 Rs. Rs. Rs. 74.00 41.75 66.75

REGNIS (LANKA) PLC /03

STATEMENT OF CHANGES IN EQUITY
Stated Capital Group Rs'000 Revaluation Reserve Rs'000 Retained Earnings Rs'000 Total Rs'000
Balance as at 1st January 2009 Final Dividends for 2008 Net Profit for the Year 2009 Balance as at 31st December 2009 Final Dividends for 2009 Revaluation of Building Net Profit for the Year 2010 Balance as at 31st December 2010

100,123 100,123 100,123

164,507 164,507 91,170 255,677
39,079 (12,073) 47,869 74,875 (14,487) 71,814 132,202
303,710 (12,073) 47,869 339,506 (14,487) 91,170 71,814 488,002
Stated Capital Company Rs'000
Revaluation Reserve Rs'000

Retained Earnings Rs'000

Total Rs'000

100,123 100,123 -

164,507 164,507 91,170
39,079 (12,073) 47,869 74,875 (14,487) 61,611 122,000
303,710 (12,073) 47,869 339,506 (14,487) 91,170 61,611 477,800

100,123

255,677

REGNIS (LANKA) PLC /04

CASH FLOW STATEMENT
GROUP Dec 2010 Rs. '000 COMPANY Dec 2010 Rs. '000 COMPANY Dec 2009 Rs. '000
Cash Flows From Operating Activities Profit Before Income Tax Expense Adjustments for Depreciation of Property,Plant & Equipment Amotisation of Intangible Assets Interest Income Interest Costs Provision for Slow moving & Obsolete inventory Provision for Retirement Gratuity Operating Profit before Working Capital Changes (Increase)/Decrease in Inventories (Increase)/ Decrease in Trade and Other Receivables (Increase)/Decrease in Dues from Related Parties Increase/(Decrease) in Dues to Related Parties Increase /(Decrease) in Trade and Other Payables Cash Generated from Operations Interest paid Income Tax Paid Retirement Gratuity paid Net Cash Flows From Operating Activities Cash Flows from Investing Activities Acquisition of Property, Plant & Equipment Proceeds from disposal of Property,Plant & Equipment Investments in Subsidiary Interest received Net Cash Flows From Investing Activities Cash Flows From Financing Activities Repayment of Long Term Loans and Borrowings Proceeds from Long Term Borrowings Repayment of Finance Lease Obligations Loan from Related Company Repayment of Related party Borrwoings Proceeds from Short Term Borrowings Repayment of Short Term Borrwoings Dividends Paid Net Cash Flows From Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents at the end of the year 148,289 137,187 75,879

18,(302) 47,364 1,000 4,266 219,305 (149,003) 36,750 2,432 47,347 156,831 (46,922) (16,753) (485) 92,671
17,676 (302) 47,144 1,000 4,266 206,971 (57,991) 86,506 (15,488) 2,327 (33,847) 188,478 (46,702) (16,753) (485) 124,538
18,854 (321) 65,679 5,600 9,643 175,334 (17,176) (50,437) (12,749) 62,915 157,887 (66,906) (12,096) (2,020) 76,865

(59,105) 302 (58,803)

(1,427) 10,924 (50,000) 302 (40,201)

(2,460) 320 (2,140)

(24,750) 45,000 (60,000) 1,091,432 (1,040,317) (14,487) (3,122) 30,746 (40,876) (10,130)
(24,000) (60,000) 1,063,424 (1,015,528) (14,487) (50,591) 33,746 (40,876) (7,130)
60,000 (7,558) 130,000 515,768 (785,960) (12,073) (99,823) (25,098) (15,778) (40,876)

REGNIS (LANKA) PLC /05

NOTES TO THE FINANCIAL STATEMENTS
1.1 The Interim Financial Statement of the Company have been prepared on the basis of the same accounting policies and methods applied for the year ended 31st
December 2009 and are in compliance with Sri Lanka Accounting Standard 35- Interim Financial Reporting. Previous year figures and Phrases have been rearranged wherever necessary to conform to the current Presentation.
2.1 Segmental analysis of revenue is as follows : Group Year Ending Dec-10 Rs'000 1,867,356 169,964 2,037,320 Company Year Ending Dec-10 Rs'000 1,853,019 141,482 1,994,501 Company Year Ending Dec-09 Rs'000 1,257,128 89,113 1,346,241
Group Qtr Ending Dec-10 Rs'000
Company Qtr Ending Dec-10 Rs'000 514,515,079
Company Qtr Ending Dec-09 Rs'000 355,273 29,437 384,710
Refrigerators & Others Washing Machines

528,588 29,309 557,897

2.2 Segmental analysis of profit before tax is as follows : Group Year Ending Dec-10 Rs'000 179,923 15,(47,316) 148,289 Company Year Ending Dec-10 Rs'000 170,647 13,(47,096) 137,187 Company Year Ending Dec-09 Rs'000 132,435 8,340 1,845 (66,741) 75,879
Company Qtr Ending Dec-10 Rs'000 45,64 (6,635) 39,354
Company Qtr Ending Dec-09 Rs'000 51,038 2,(11,309) 42,272
Refrigerators & Others Washing Machines Other Operating Income Finance Cost

58,224 2,(8,001) 52,332

REGNIS (LANKA) PLC /06
Notes to the Financial Statements
3 3.1 CAPITAL COMMITMENTS & CONTINGENCIES Contingencies The company cleared a shipment of imported goods during the year 2008 on provision of a bank guarantee amounting to Rs. 6,522,083/- to the Director of Customs. The bank guarantee relates to alleged additional duty payable on imports which is contested by the Company. The customs inquiry initiated in 2008 is still pending. The management is of the opinion that there is no basis that the company is liable for additional duty and hence, no provision is made in the financial statements Other than the above company does not have significant contingencies as at the Balance Sheet date. 3.2 Capital Commitments There were no material capital commitments as at the Balance Sheet Date EVENTS OCCURRING AFTER THE BALANCE SHEET DATE No circumstances have arisen since the Balance Sheet date, which would require adjustments to or disclosure in the Financial Statements

5. Related Party Transactions 5.1 Identity of related party
The company has related party relationship with its parent company,Associate company, Affiliate companies and with its Directors.
5.2 Transactions with parent Company
Following Companies which are parent companies of Regnis (Lanka) PLC with Whom no transactions were entered during the year Companys Singer (Sri Lanka) B.V. Singer Asia Holdings B.V. Singer Asia Holdings N.V. Singer Asia Limited Retail Holdings N.V. Relationship Intermediate Parent Intermediate Parent Intermediate Parent Intermediate Parent Ultimate Parent
5.3 Transactions with Subsidiary company
a) During the year company had following transactions with its subsidiary company Regnis Appliances (Pvt) Ltd.

Dec 2010 Rs. Mn

Investment in share capital Bank Guarantees Issued Transfer of Machinery at net book value Purchase of parts Sale of raw material Sales Taxes Payment for parts purchase Expenses incurred Interest income Balance at the end
50.00 235.00 12.61 (52.57) 100.16 26.60 (54.34) 13.04 2.15 47.65
5.4 Transactions with Affiliate Entities
Transactions with the following parties have been disclosed in Note No 6 Company Singer(Sri Lanka) PLC Singer Industries (Ceylon) PLC Reality (Lanka) Limited Relationship Affiliate Company Affiliate Company Affiliate Company

REGNIS (LANKA) PLC /07

6 RELATED PARTY DISCLOSURES a) Transactions with Key management personnel (i) Loans to Directors No loans have been given to the directors of the company (ii) Key management personnel and directors transaction A number of key management personnel or their related parties, hold positions in other entities that result in them having control or significant influence.over the financial or operating policies of these entities. These transactions are given below The aggregated value of transactions and outstanding balance relating to key management personnel and entities over which they have control or significant influence were as follows Name of the Company and Relationship Singer (Sri Lanka) PLC - Affiliate 2010 Rs. Mn. Bank Guarantee on behalf of Regnis Balance at the begining Revenue Sales taxes Non trade Settlement Funds received for sales Expenses Incurred Interest Expense Balance at the End Loan Obtained Sale of Supply material Expenses Incurred Settlement of dues Balance at the End 455.50 155.70 1,914.65 516.38 44.00 (2,540.69) (27.95) (16.26) 45.83 70.00 2.14 0.09 2.Rs. Mn. 455.50 89.93 1,342.00 343.00 59.00 (1,632.00) (30.00) (16.00) 155.93 130.00 1.00 (1.00) -

Name of the Director Mr. H.D.S. Amarasuriya Mr. G.J.Walker Mr. V.G.K. Vidyaratne Dr G.C.B. Wijeyesinghe Mr. H.A.Pieris Dr.Saman Kelegama
Singer Industries (Ceylon) PLC - Affiliate
Mr. H.D.S. Amarasuriya Dr G.C.B. Wijeyesinghe Mr. G.J.Walker Mr. V.G.K. Vidyaratne Mr. H.A.Pieris
National Development Bank PLC
Mr. H.D.S. Amarasuriya Long term loans balance Dr G.C.B. Wijeyesinghe Short term loan balance (Resigned w.e.f. 31.03.2010) Mr. H.D.S. Amarasuriya Mr. V.G.K. Vidyaratne Mr. H.A.Pieris Mr. G.J.Walker Investment

36.00 40.15

60.00 15.00
Reality (Lanka) Limited - Affiliate
Regnis Appliances (Pvt) Ltd. - Subsidiary
Mr. H.D.S. Amarasuriya Mr. V.G.K. Vidyaratne
Investment in share capital Bank guarantees issued
Transfer of Machinery at N.B.V
Purchase of parts Sale of raw material Sales Taxes Payment for parts purchase Expenses incurred Interest income Receivable balance

Sampath Bank PLC

Dr.Saman Kelegama

Short term loan balance

REGNIS (LANKA) PLC /08
7 The Company has prepared Consolidated Financial Statements consequent to the Investment in the fully owned subsidiary. GENERAL Stated Capital No of shares - Ordinary Shares Voting rights TWENTY LARGEST SHAREHOLDERS

December 2010

31-Dec-10
Rs. 100,123,470/4,829,084
One vote per ordinary share
1 Singer (Sri Lanka ) BV 2 Seylan Bank PLC/Dr.T.Senthilverl 3 Waldock Mackenzie Ltd/Mr. L.P.Hapangama 4 Waldock Mackenzie Ltd/Delmege Forsyth & Company (Shipping) Limited 5 Union Investments Limited 6 Mr.V.G.K.Vidyaratne 7 Dr.Alagu Caruppiah Visvalingam 8 Mr.Frederick Germain Noel Mendis 9 Waldock Mackenzie Ltd/Mr.Chamila Damion Kohombanwickramage 10 Delmege Forsyth & Company (Shipping) Limited 11 Mr.Sivasithamparam Srikanthan 12 Waldock Mackenzie Ltd/Lewis Brown & Company Limited 13 Waldock Mackenzie Ltd/Delmege Forsyth & Company (Shipping) Limited 14 Mr. Azeez Jalaluddin Rumy 15 Sandwave Limited 16 Mrs.Sonali Roshini Perera 17 Mr. Hemaka Devapriya Senarath Amarasuriya 18 Monad (Private) Limited 19 HSBC Intel Nom LTD-UBS AG Zurich 20 Mr.Murtazaali Abidhussen Hassanaly Esufally Total

No of Shares

53.45 7.49 3.63 1.36 1.11 1.06 1.05 1.04 0.86 0.83 0.83 0.79 0.78 0.68 0.65 0.60 0.57 0.54 0.52 0.52 78.34
31st Dec 2009 No of Shares
2,581,158 361,800 175,300 65,900 53,400 51,075 50,921 50,000 41,400 40,000 40,000 38,100 37,500 33,000 31,200 29,141 27,377 26,000 25,000 25,000 3,783,272
31st Dec. 2010 No of Shares
10 DIRECTORS' AND CEO'S SHAREHOLDINGS AS AT
Name of the Director Mr.V.G.K.Vidyaratne Mr.H.D.S.Amarasuriya Dr.G.C.B.Wijeyesinghe Mr.G.J.Walker Mr.H.A.Pieris
(CEO & Managing Director - w.e.f.01.07.2010)
51,075 27,377 No of Shares

51,075 27,377 % 44.93

SHARES HELD BY PUBLIC

2,169,474

REGNIS (LANKA) PLC /09

PQ 191