INTERIM STATEMENT (UNAUDITED) For the Quarter Ended 30th September 2017

ADAM INVESTMENTS PLC

ADAM INVESTMENTS PLCSTATEMENT OF FINANCIAL POSITION

Company Consolidated Consolidated Unaudited

31st March 2017 Unaudited

31st March 2017 AS AT 30th Sep. 2017 30th Sep. 2016 30th Sep. 2017 30th Sep. 2016ASSETS

2,150,540 1,087,580,373 Property, Plant and Equipment 1,135,723,639 1,150,297,236 1,659,167 2,669,629 27,798,680 Capital-Work in Prpgress 10,064,254 63,267,530

753,883,000 164,361,670 Investment in Subsidiaries 164,361,670 753,883,000 753,883,000 - Investment in Associates - -

48,986 13,118,432 Intangible Assets 110,268 13,121,154 40,822 51,708 - 142,527,130 Goodwill on Acquisition 142,527,130 142,527,130 - -

756,082,526 1,435,386,285 1,452,786,961 1,369,213,050 755,582,989 756,604,337 - 504,576,572 Inventories 521,248,993 322,390,494 - -

459,953,409 517,253,409 Investments 466,535,482 541,033,471 408,052,982 483,733,471 193,855 405,227,909 Trade & Other Receivable 267,273,473 406,048,232 165,355 122,355

141,863,366 494,252,799 Amount Due from Related Companies 423,292,263 476,116,966 132,395,468 138,015,783 25,126,425 82,228,698 Cash & Cash Equivalents 43,189,958 64,906,563 8,939,706 8,228,442

627,137,055 2,003,539,387 CURRENT ASSETS 1,721,540,169 1,810,495,725 549,553,511 630,100,050 1,383,219,582 3,438,925,672 TOTAL ASSETS 3,174,327,130 3,179,708,775 1,305,136,500 1,386,704,388

EQUITY 714,508,200 714,508,200 Stated Capital 714,508,200 714,508,200 714,508,200 714,508,200 63,518,582 290,334,799 Reserve 285,630,087 314,114,861 58,563,870 87,298,644

Revaluation Surplus(93,335,922) 137,436,024 Retained Profit / (Loss) for The Year 107,990,994 164,925,607 (104,927,491) (70,039,457) 684,690,860

- 565,665,520 Non Controlling Interest 574,408,181 365,763,879 - - 684,690,860 1,707,944,543 TOTAL EQUITY 1,682,537,462 1,559,312,547 668,144,578 731,767,387

LIABILITIES437,138,850 713,052,336 Interest Bearing Borrowings 719,498,043 847,497,180 438,350,404 468,823,164

- (7,445,931) Deferred Tax Liabilities (5,133,411.05) (7,445,931) - - 117,295 6,908,486 Defined Benefit Plans 6,597,825 7,258,006 117,295 117,295

437,256,145 712,514,890 NON CURRENT LIABILITIES 720,962,457 847,309,255 438,467,699 468,940,459 29,181,433 134,579,553 Trade & Other Payables 112,411,561 133,728,232 27,238,626 20,200,589

157,187,306 567,559,424 Interest Bearing Borrowings 466,954,701 398,949,464 97,547,008 144,902,586 6,731,133 51,437,041 Taxation 48,698,251 49,647,030 6,748,273 6,694,794

60,876,552 227,417,913 Amounts Due to Related Companies 104,137,119 149,831,663 45,633,723 6,039,174 7,296,152 37,472,309 Bank Overdraft 38,625,580 40,930,585 21,356,593 8,159,397

261,272,575 1,018,466,240 CURRENT LIABILITIES 770,827,212 773,086,974 198,524,225 185,996,541 698,528,720 1,730,981,130 TOTAL LIABILITIES 1,491,789,669 1,620,396,228 636,991,924 654,936,999

1,383,219,582 3,438,925,673 TOTAL EQUITY & LIABILITIES 3,174,327,131 3,179,708,775 1,305,136,500 1,386,704,388

0.76 1.27 Net Assets per shares 1.23 2.66 0.74 1.63 The above figures are provisional & subject to audit

Sgd. Sgd. Director DirectorAjita M. Pasqual L M F Adams

Approved by the board on 02nd January 2018

1,142,279,023

Company

TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 668,144,578 731,767,387 1,108,129,281 1,193,548,668

ADAM INVESTMENTS PLC

ADAM INVESTMENTS PLCSTATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30TH SEPTEMBER 2017

30th Sep. 2017 30th Sep. 2016 30th Sep. 2017 30th Sep. 2016 30th Sep. 2017 30th Sep. 2016 30th Sep. 2017 30th Sep. 2016

CONTINUING OPERATIONRevenue 367,000,992 459,645,753 179,220,256 222,736,936 - - Cost of Sales (294,112,776) (362,305,799) (142,516,382) (174,973,933) - - - - GROSS PROFIT 72,888,216 97,339,954 36,703,874 47,763,003 - - - - Other Income 5,741,602 25,067,374 4,982,525 12,947,107 4,485,443 180,000 4,395,443 90,000 Selling and Distribution Expenses (11,868,800) (16,809,008) (5,926,183) (8,962,324) - - Administrative Expenses (33,167,920) (43,265,778) (19,471,450) (22,987,074) (4,109,355) (5,391,993) (2,792,880) (2,179,997) RESULT FROM OPERATING ACTIVITIES 33,593,097 62,332,542 16,288,765 28,760,712 376,087 (5,211,993) 1,602,563 (2,089,997) Finance Cost (34,740,313) (50,354,358) (19,190,306) (16,937,250) (13,564,833) (25,565,678) (5,672,057) (6,537,312) Finance Income 1,613,310 7,767,069 - 2,884,314 1,613,310 7,767,069 - 2,884,314 NET FINANCE COST (33,127,004) (42,587,289) (19,190,306) (14,052,935) (11,951,524) (17,798,608) (5,672,057) (3,652,997) PROFIT AFTER FINANCE COST 466,093 19,745,253 (2,901,541) 14,707,777 (11,575,436) (23,010,601) (4,069,495) (5,742,994) Share of Associate Company's ProfitPROFIT BEFORE TAX 466,093 19,745,253 (2,901,541) 14,707,777 (11,575,436) (23,010,601) (4,069,495) (5,742,994) Tax Expense (4,328,653) (3,077,671) (4,312,520) (28,843) (16,133) (77,671) - (28,843) PROFIT FROM CONTINUING OPERATION (3,862,560) 16,667,582 (7,214,061) 14,678,934 (11,591,569) (23,088,272) (4,069,495) (5,771,837) DISCONTINUING OPERATIONProfit (loss) from Discontinuing Operation (Net of Tax)PROFIT FOR THE PERIOD (3,862,560) 16,667,582 (7,214,061) 14,678,934 (11,591,569) (23,088,272) (4,069,495) (5,771,837) OTHER COMPREHENSIVE INCOMESurplus on revaluation of property,plant and equipment

Net Changing Fair Value of Available for Sale Financial Assets (4,704,712) 152,418,116 - 147,411,787 (4,954,712) 152,418,116 - 147,411,787 Defined Benefit Plan Actuarial Gains / (losses)OTHER COMPREHENSIVE INCOME FOR THE PERIOD (4,704,712) 152,418,116 - 147,411,787 (4,954,712) 152,418,116 - 147,411,787 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (8,567,272) 169,085,699 (7,214,060) 162,090,721 (16,546,282) 129,329,844 (4,069,495) 141,639,950

Total Profit for The Year Attributable To:Equity Holder of The Parent (12,605,222) 1,293,972 (10,623,429) 7,136,211 (11,591,569) (23,088,272) (4,069,495) (5,771,837) Non Controlling Interest 8,742,661 15,373,611 3,409,367 7,542,723 0 0 0 0Profit for The Period (3,862,560) 16,667,582 (7,214,061) 14,678,934 (11,591,569) (23,088,272) (4,069,495) (5,771,837)

Total Other Comprehensive Income Attributable To: Equity Holders of The Parent (4,704,712) 152,418,116 - 147,411,787 (4,954,712) 152,418,116 - 147,411,787 Non Controlling Interest 0 0 0 0 0 0 0 0

(4,704,712) 152,418,116 - 147,411,787 (4,954,712) 152,418,116 - 147,411,787

Earnings Per Share - Basis (0.014) 0.003 (0.012) 0.016 (0.013) (0.051) (0.005) (0.013)

03 Months Ended

CompanyConsolidated

06 Months Ended 06 Months Ended 03 Months Ended

ADAM INVESTMENTS PLC

ADAM INVESTMENTS PLCSTATEMENT OF CHANGES IN EQUITY (Expressed in Sri Lankan Rupees)FOR THE PERIOD ENDED 30TH SEPTEMBER 2017

CompanyStated Reserve Minority Retained Total

In LKR capital Interest profit / (loss) Balance as at 01st of April 2016 714,508,200 (65,119,472) (46,951,185) 602,437,543 Impacts of changers in accounting policies Prior year adjustments - Retirement benefit under provision Balance at 01st of April 2016 714,508,200 (65,119,472) - - (46,951,185) 602,437,543 Profit (23,088,272) (23,088,272) Revaluation of property plant & equipment - Adjustments in Fair Value - Net changing fair value of available for sale financial assets 152,418,116 152,418,116 Total comprehensive income for the period 152,418,116 (23,088,272) 129,329,844 Issue of shares Dividends Total contribution by and distribution to the owners of the company Balance at 30th Sep. 2016 714,508,200 87,298,644 - - (70,039,457) 731,767,387

Balance as at 01st of April 2017 714,508,200 63,518,582 (93,335,922) 684,690,860 Impacts of changers in accounting policies Prior year adjustments Balance at 01st of April 2017 714,508,200 63,518,582 - - (93,335,922) 684,690,860 Profit (11,591,569) (11,591,569) Revaluation of property plant & equipment - Dividends - - Net changing fair value of available for sale financial assets (4,954,712) (4,954,712) Total comprehensive income for the period (4,954,712) (11,591,569) (16,546,282) Issue of shares Dividends Total contribution by and distribution to the owners of the company Balance at 30th Sep. 2017 714,508,200 58,563,870 - - (104,927,491) 668,144,578

Group Stated Reserve Revaluation Minority Retained Total

In LKR capital Surplus Interest profit / (loss) Balance as at 01st of April 2016 714,508,200 161,696,745 350,390,268 143,836,316 1,370,431,529 Impacts of changers in accounting policies Balance at 01st of April 2016 714,508,200 161,696,745 350,390,268 143,836,316 1,370,431,529 Profit 15,373,611 1,293,972 16,667,582 Surplus on revaluation of property,plant and equipment - Prior year Adjustments 19,795,319 19,795,319 Adjustments in Acquisition - Surplus on revaluation of property,plant and equipment - Net changing fair value of available for sale financial assets 152,418,116 152,418,116 Total comprehensive income for the period - 152,418,116 15,373,611 21,089,291 188,881,018 Issue of shares Dividends Total contribution by and distribution to the owners of the company Balance at 30th Sep. 2016 714,508,200 314,114,861 365,763,879 164,925,607 1,559,312,547

Balance as at 01st of April 2017 714,508,200 290,334,799 565,665,520 137,436,024 1,707,944,543 Impacts of changers in accounting policies Prior year adjustments (16,839,809) (16,839,809) Balance as at 01st of April 2017 714,508,200 290,334,799 565,665,520 120,596,215 1,691,104,734 Profit 8,742,661 (12,605,222) (3,862,560) Surplus on revaluation of property,plant and equipment - Non controlling interest arised from Acquision/diverse - Dividends - Surplus on revaluation of property,plant and equipment - Net changing fair value of available for sale financial assets (4,704,712) (4,704,712) Total comprehensive income for the period - (4,704,712) 8,742,661 (12,605,222) (8,567,272) Issue of shares Dividends Total contribution by and distribution to the owners of the company Balance at 30th Sep. 2017 714,508,200 285,630,087 574,408,181 107,990,994 1,682,537,462

ADAM INVESTMENTS PLC

ADAM INVESTMENTS PLCSTATEMENT OF CASH FLOW (Expressed in Sri Lankan Rupees)FOR THE PERIOD ENDED 30TH SEPTEMBER 2017

30th Sep. 2017 30th Sep. 2016 30th Sep. 2017 30th Sep. 2016

Cash Flow from Operating ActivitiesProfit/(Loss) for The period Before Tax (3,862,560) 36,462,901 (11,591,569) (23,088,272) Adjustments for:-

Provision for Gratuity / (Over Provision) - WHT paidInterest ExpensesLoss on Sale on Shares - (Profit)/Loss on sale of non current InvestmentPrior year adjustmentFair Value Gain on Short Term Investments - Lease Interest Charge - Post Tax Share of Equity Accounted Associate's ProfitGratuity provision for retirement benefit obligationDepreciation of Property, Plant & Equipment 24,407,136 (98,643) 499,537 (98,643) Amotization of Intangible Assets

Operating Profit before Working Capital Changes 20,544,576 36,364,259 (11,092,032) (23,186,915) (Increase)/Decrease in Inventories (16,672,421) (19,565,827) (Increase)/Decrease in Trade & Other Receivables 137,916,558 90,381,600 28,500 36,001 (Increase)/Decrease in Amount Due from Related Companies 70,960,536 (338,822,337) 9,467,900 36,183,173 Increase/(Decrease) in Trade & Other Payables (22,167,992) (8,764,517) (1,942,806) (2,838,905) Increase/(decrease) in Investments in Associate Companies - - Increase/(Decrease) in Amount Due to Related Companies (123,280,794) 122,194,113 (15,242,828) 6,039,174

Cash Generating from Operation 46,755,887 (154,576,968) (7,689,234) 39,419,442

Net Cash Flow from Operating Activities 67,300,463 (118,212,710) (18,781,266) 16,232,527 Cash Flow from Investment Activities

Investment in Short Term InvestmentSales Proceed on Sale of Shares 61,878,219 61,878,219 Goodwill on acquisitionReinvestment of The Profit of The Sale of Share (4,305,443) (4,305,443) Investment in Short TermInvestment in Subsidiaries(Increase)/Decrease in Investment (10,627,067) (10,627,067) Investment in Equity Accounted AssociatesIssue of sharesAcquisition of Intangible Assets 13,008,165 Work in PrpgressProceeds from sale of property, plant and equipment (72,550,403) (10,000)

Cash Flow from Investment Activities (12,596,529) - 46,945,709 (10,000) Cash Flow from Financing Activities

Taxation (2,738,790) (12,875,217) 17,140 47,670 Lease Installments PaidInterest bearing borrowings (94,159,016) 100,394,591 (58,428,744) (16,908,107) Loans Received (Net)Deferred Tax Liabilities 2,312,520 (357,917) Defined Benefit Plans (310,661) 871,887 Loan payment

Cash Flow from Financing Activities (94,895,947) 88,033,344 (58,411,603) (16,860,437) Net Change in Cash & Cash Equivalents (40,192,012) (30,179,365) (30,247,160) (627,909) Cash & Cash Equivalents at The Beginning of The Year 44,756,390 54,155,344 17,830,274 696,954 Opening Balances of the Acquired Subsidiaries

Cash & Cash Equivalents at End of The Quarter 4,564,378 23,975,979 (12,416,887) 69,045

CompanyGroup

ADAM INVESTMENTS PLC ADAM INVESTMENTS PLC Notes to the interim financial statements (In the notes all amounts are shown in Sri Lanka Rupees millions unless otherwise stated)

1. General Information Adam Investments PLC is a Public Limited Company domiciled in Sri Lanka. It is an investment holding company which holds shares of privately held companies operating in various industries such as manufacturing and exporting of Activated Carbons, Sharia Compliant micro financing Importing & supplying of Information Technology and total solution provider to computers and accessories, manufacturing of metal hardware items, importing and installing of Air Conditioners and importing vehicles and vehicle spare parts. The registered office of business is 264, Grandpass Road, Colombo 14.

2. Basis of preparation The condensed interim financial statements of Adam Investments PLC are for the quarter ended 30th September 2017. They have been prepared in accordance with LKAS 34, Interim Financial Reporting. These interim financial statements have been prepared in accordance with the SLFRS standards and IFRIC interpretations issued and effective as at the time of preparing these statements. The condensed interim financial statements do not include all of the information required for full annual financial statements and have not been audited.

3. Summary of significant accounting policies The accounting policies adopted are consistent with most recent Audited Financial Statements for the year ended 31stMarch 2016.

4. Events after the Reporting Period - Mr. Imran Zahir has resigned from the board with effect from 16th November 2017.

5. Comparatives Comparatives are provided for the statement of financial position at the date of the last year ended 31st March 2017 and for the quarter ended 30th September 2016.

6. Contingent Liabilities There have not been any material changes to the contingent assets or contingent liabilities since the last annual reporting period.

ADAM INVESTMENTS PLC

7. Market Price Per Share

For the Quarter ended 30th September 2017 2017/2018 – 02nd Quarter 2016/2017 – 02nd Quarter

Price (Rs) Price (Rs) Highest 0.70 2.70 Lowest 0.30 2.00 Closing 0.40 2.30

* Each AINV ordinary share was sub-divided in to two (02) Ordinary Shares on 16th January 2017. 8. Issued Share Capital The number of Shares issued and fully paid of the Company as at 30th September 2017 is

898,552,400 and values of the Shares are Rs.714, 508,200. 9. Net assets per share

Company Group 30th Sep 2017 30th Sep 2016 30th Sep 2017 30th Sep 2016

Net assets per share 0.74 1.63 1.23 2.66 * Each AINV ordinary share was sub-divided in to two (02) Ordinary Shares on 16th January 2017.

DIRECTORS’ AND CEO’S SHAREHOLDING AS AT 30TH SEPTEMBER 2017

DIRECTOR'S NAME NO. OF SHARES %1 MR. A M PASQUAL 76,000 0.0082 DR. L M F ADAMS NIL

FIRST CAPITAL MARKETS LIMITED/ DR. L M F ADAMS 449,7413 MR. L W W PRIYANKARA 1,900,000 0.2114 MR. M I R ZAHIR NIL NIL5 MR. W.A. ADRIAN PERERA NIL NIL

449,741 0.050

ADAM INVESTMENTS PLC

Public Holding Percentage as at 30th September 2017 being 21.4523% comprising of 1462 shareholders.

Shareholder's Name No of Shares (%)1 PAN ASIA BANKING CORPORATION PLC / MR. G.H.A.A.SHABBIR 368,810,400 41.0452 DR. G.H.A.A. SHABBIR 228,924,218 25.4773 SAMPATH BANK PLC/ DR.T.SENTHILVERL 87,101,812 9.6944 MRS. L.N. BALDSING 30,500,000 3.3945 COMMERCIAL BANK OF CEYLON PLC/CEYLON & FOREIGN TRADES PLC 18,530,369 2.0626 MR. G.H.I. SHABBIR 7,467,391 0.8317 MR. M.N.RATNAPRIYA 4,700,000 0.5238 MR. A.Y. TYEBKHAN 4,531,208 0.5049 BANK OF CEYLON A/C CEYBANK UNIT TRUST 3,859,024 0.429

10 COMMERCIAL BANK OF CEYLON PLC/S.A.GULAMHUSEIN 3,168,000 0.35311 MR. A.M. ZAHIR AHAMED 3,150,000 0.35112 MR. J.V.G.SUMITHRA 3,000,499 0.33413 MR.D.S.VANDORT 3,000,000 0.33414 MR.M.H.A.SALIM 2,990,000 0.33315 MR.J.F.I.ABEYDEERA 2,846,620 0.31716 DR.A.S.WIJENAYAKA 2,821,756 0.31417 MR.R.E.RAMBUKWELLE 2,291,348 0.25518 MR.K.M.I.L.KONARA 2,182,083 0.24319 MR.M.M.M.MILFER 2,001,350 0.22320 MACKSONS HOLDINGS ( PVT ) LTD. 2,000,000 0.223

783,876,078 87.238OTHERS 114,676,322 12.762TOTAL 898,552,400 100.00

ADAM INVESTMENTS PLC20 MAJOR SHAREHOLDERS AS AT 30TH SEPTEMBER 2017