Interim Financial StatementsFor the period ended

31st March 2015

eChannelling PLCSTATEMENT OF COMPREHENSIVE INCOME

For the year ended 31.03.2015

Un-audited Un-audited Un-audited Audited Un-audited Un-audited Un-audited Audited2015 2014 2015 2014 2015 2014 2015 2014LKR LKR LKR LKR LKR LKR LKR LKR

SLFRS / LKAS SLFRS / LKAS SLFRS / LKAS SLFRS / LKAS SLFRS / LKAS SLFRS / LKAS SLFRS / LKAS SLFRS / LKAS

Revenue 50,520,565 46,788,200 193,765,504 182,858,172 42,326,669 38,682,317 163,143,338 162,536,342

Cost of Sales (17,325) (26,342) (57,233) (72,402) - - - -

Gross Profit 50,503,240 46,761,858 193,708,271 182,785,770 42,326,669 38,682,317 163,143,338 162,536,342

Other Operating Income (24,956) 16,000 (649,887) (51,590,964) (29,956) (254,960) (29,514) (941,095)

Administrative Expenses (18,827,714) (16,745,032) (66,059,797) (62,454,658) (17,613,850) (15,029,740) (63,039,576) (60,365,063)

Marketing & Distribution Expenses (910,431) (236,355) (1,749,255) (523,391) (891,431) (208,415) (1,669,780) (483,651)

Profit From Operations 30,740,139 29,796,471 125,249,332 68,216,757 23,791,432 23,189,202 98,404,468 100,746,533

Finance Income 984,154 1,744,660 3,514,304 4,221,503 984,154 1,940,646 3,532,051 10,423,821

Finance Expenses - - - (1,142,901) - - - -

Net Finance (Expenses) / Income 984,154 1,744,660 3,514,304 3,078,602 984,154 1,940,646 3,532,051 10,423,821

Profit Before Taxation 31,724,293 31,541,131 128,763,636 71,295,359 24,775,586 25,129,848 101,936,519 111,170,354

Income Tax Expenses (5,866,442) (15,648,561) (12,952,227) (21,714,231) (5,095,901) (15,329,287) (10,119,705) (20,915,680)

Profit for the Period 25,857,851 15,892,570 115,811,409 49,581,128 19,679,686 9,800,561 91,816,815 90,254,674

Other Comprehensive IncomeNet Change in Fair Value of Available-For-Sale Financial Assets (112,958) (732,235) 59,586 61,000,965 (137,011) (585,236) (80,480) 647,034 - Other Comprehensive Income for the Period (112,958) (732,235) 59,586 61,000,965 (137,011) (585,236) (80,480) 647,034 Total Comprehensive Income for the Period 25,744,893 15,160,335 115,870,995 110,582,093 19,542,674 9,215,325 91,736,335 90,901,708

Earnings Per Share 0.21 0.13 0.95 0.41 0.16 0.08 0.75 0.74

Dividends Per Share - 0.50 - 1.35 - 0.50 - 1.35

Figures in brackets indicate deductions.

GROUP COMPANYQuarter Ended 31st March Year ended 31st MarchQuarter Ended 31st March

The notes to the Financial Statements form an integral part of these Financial Statements.

Year ended 31st March

eChannelling PLCSTATEMENT OF FINANCIAL POSITIONAs at 31st March 2015

COMPANY GROUP COMPANY31.03.2015 31.03.2014 31.03.2014

LKR LKR LKRUn-audited Audited Audited

ASSETSNon Current AssetsProperty, plant & equipment 17,908,467 733,665 733,665 Intangible assets 4,850,867 7,666,825 7,709,529 Employee share ownership trust fund 1,160,000 1,160,000 1,160,000 Long term investment - 104,705,000 - Investment in subsidiary company - - 150,100,000 Deferred taxation 1,614,648 5,043,846 5,039,575 Total Non Current Assets 25,533,982 119,309,336 164,742,769

Current AssetsInventories 457,188 513,896 - Trade & other receivables 45,531,534 4,823,997 4,379,931 Short term investments 57,112,249 16,295,063 14,687,739 Loan to subsidiary - - 1,774,758 Cash & cash equivalents 46,045,597 14,596,944 14,420,645 Total Current Assets 149,146,568 36,229,900 35,263,073 Total Assets 174,680,550 155,539,236 200,005,842

EQUITY AND LIABILITIESEquityStated capital 93,758,316 93,758,316 93,758,316 Retained earnings 31,389,399 (15,087,186) 65,058,404 Available for sale reserve (412,882) (625,563) (332,402) Equity attributable to owners of the company 124,734,834 78,045,567 158,484,318 Non-controlling interest - 34,849,841 - Total Equity 124,734,834 112,895,408 158,484,318

Non Current Liabilities Employee benefits 4,333,304 2,109,234 2,109,234 Total Non Current Liabilities 4,333,304 2,109,234 2,109,234

Current LiabilitiesTrade & other payables 40,474,138 35,651,659 35,332,177 Income tax liability 5,138,274 4,882,935 4,080,113 Total Current Liabilities 45,612,412 40,534,594 39,412,290 Total Liabilities 49,945,716 42,643,828 41,521,524 Total Equity & Liabilities 174,680,550 155,539,236 200,005,842 Net Asset Per Share 1.02 0.64 1.30

I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act No 7 of 2007.

SignedA.R.R.D. AlahakoonFinance Manager

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Signed for and on behalf of the board:

Signed SignedT. Koike S.A.HettiarachchiCEO Director

Date 26.05.2015

Figures in the brackets indicate deductions.

The above figures are provisional and subject to audit.

After Amalgamation

eChannelling PLCSTATEMENT OF CHANGES IN EQUITY

COMPANYFor the Year Ended 31st March 2015

Retained Total Earnings

LKR LKR LKR LKR

Balance as at 1st April 2013 93,758,316 (1,244,566) 139,946,271 232,460,021

Profit for the year - - 90,254,674 90,254,674

Net Change in Fair Value of Available-For-Sale Financial Assets - 912,164 (265,130) 647,034

Final Dividend - 2012/2013 - - (61,065,708) (61,065,708)

Interim Dividend - 2013/2014 - - (103,811,703) (103,811,703)

Balance as at 31st March 2014 93,758,316 (332,402) 65,058,404 158,484,318

Profit for the year - - 91,816,815 91,816,815

Net Change in Fair Value of Available-For-Sale Financial Assets - (80,480) - (80,480)

Loss on Amalgamation - - (125,485,819) (125,485,819)

Balance as at 31st March 2015 93,758,316 (412,882) 31,389,399 124,734,834

Stated Capital Available for-sale Reserve

eChannelling PLCCASH FLOW STATEMENT

For the year ended 31.03.2015Year Ended Year Ended31.03.2015 31.03.2014Un-audited Audited

LKR LKR

Cash Flow From Operating ActivitiesProfit Before Taxation 101,936,519 111,170,354

Adjustments for : Depreciation and Amortization 4,477,715 3,684,700 Provision for Employee Benefits 2,224,070 586,540 (Gain)/Loss on Sales of Shares - 1,433,926 Interest Income (3,532,051) (10,423,821) Provision for Impairment of Bad & Doudtful Debtors - 150,258 Operating Profit before Working Capital Changes 105,106,254 106,601,957

Decrease / (Increase) in Trade & Other Receivable (39,732,080) 4,086,216 Increase / (Decrease) in Amounts Due to Related Parties 23,482,744 (1,476,078) Increase / (Decrease) in Trade & Other Payables 5,634,770 (32,895,339) Cash Generated from Operations 94,491,687 76,316,756

Interest Received 3,532,051 11,117,505 Tax Paid (8,268,434) (7,738,492) Gratuity Paid - (1,114,090) Net Cash Generated from Operating Activities 89,755,304 78,581,679

Cash Flow From Investing ActivitiesAcquisition of Property Plant and Equipment (18,750,152) (3,570,189) Net Proceeds of Short Term Investments (40,677,121) 13,335,020 Loan Recovered/Grant to Subsidiary 1,774,758 35,470,274 Proceeds from Sale of Shares - 1,696,743 Net Cash (used in) / Generated from Investing Activities (57,652,515) 46,931,848

Cash flow from Financing ActivitiesDividend Paid (477,838) (164,877,411) Net Cash Generated from Financing Activities (477,838) (164,877,411)

Net Increase in Cash & Cash Equivalents 31,624,951 (39,363,885) Cash & Cash Equivalents at Beginning of the Year 14,420,645 53,784,530 Cash & Cash Equivalents at end of the Year 46,045,597 14,420,645

Analysis of Cash and Cash Equivalents Cash at Bank & in Hand 46,045,597 14,420,645

46,045,597 14,420,645 - -

Figures in the brackets indicate deductions.

The above figures are provisional and subject to audit.

COMPANY

Notes to the Financial Statements

1 Basis of preparation

2 Company is following the same accounting policies in the Annual report for the year ended 31st March 2014.

3

4 The figures are provisional and subject to audit.

5

6

7

8

9

The Institute of Chartered Accountants of Sri Lanka (ICASL) has issued a new volume of Sri Lanka Accounting Standards (SLFRS’s/LKAS’s) which has become applicable for financial periods commenced after 1st January 2012. Accordingly the Interim Financial Statements of the Company have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34 – Interim Financial Reporting. This Interim Financial Statement should be read in conjunction with the Annual Report for the year ended 31 March 2014 and the changes to accounting policies as a result of adopting Sri Lanka Accounting Standards prefixed SLFRSs/LKASs. The financial statements provide the information as required in terms of Rule 7.4 of the Colombo Stock Exchange.

Comparative figures/information have been restated/reclassified where necessary in line with the changes to the new Sri Lanka Accounting Standards (SLFRS/LKAS) which are effective from 01 January 2012 and wherever necessary to conform to the current presentation.

All known expenses including management fees and similar expenses have been provided for the financial statements.

ECL soft (Pvt) LTD, a fully own subsidiary of E-Channelling PLC has been amalgamated with E-Channelling PLC with effect from 27th March 2015.

Basic earnings per share is calculated by dividing the net profit for the respective period attributable to ordinary shareholders of the parent entity by the weighted average number of ordinary shares outstanding during that period.

According to the best of knowledge and belief of the Board of Directors no circumstances have arisen since the reporting date, which would require adjustments to or disclosure in the Financial Statements.

There has not been a significant change in the nature of contingent liabilities, which were disclosed in the Annual Report for the year ended 31 March 2014.

20 Largest Shareholders No of Shares % Holding

Senior Marketing System Asia (Pte).Limited 106,613,601 87.29

Sandwave Limited 1,451,846 1.19

Est.of.lat Perera (Deceased) Liyanage Saliya Ignatious 1,451,800 1.19Mr.G.C. Goonetilleke 1,160,000 0.95

Mr.P. Rathnayaka 840,000 0.69

Mr.F.N. Goonewardena/Dr.J.B. Peiris 812,000 0.66

Mr. Carinjee(Deceased) 347,900 0.28

Dr. M. M. Rinoza 322,400 0.26

Mr.M.A.B. Morahela 289,300 0.24Mr.A.H. Munasinghe 277,031 0.23

Mr.Guruge Piyadasa 271,761 0.22

Pan Asia Banking Corporation PLC/Mr.R.E. Rambukwelle 250,000 0.20Mr.D.K.A.K. Weeratunga 219,544 0.18

Mrs.T.R. Selvanayagam 196,800 0.16

Mr.G.C.S. Ramanayake 180,000 0.15Mr.D.P. Kumarasingha 175,000 0.14Dasatha Investments Limited 163,331 0.13Mr.A. Nimalasuriya 120,609 0.10Mr.B.A.St Ivor Perera 120,400 0.10Miss.S.D.Pieris 119,347 0.10

Sub Total 115,382,670 94.46Others 6,748,745 5.54Total Shares 122,131,415 100

Public ShareholdingNumber of Shareholders 1,619 Number of Shares 15,517,814 Persentage Holding 12.71%

Directors Shareholding Name of DirectorMr. D.J. Stephen - - Mr.S.A. Hettiarachchi - - Mr.T Koike - - Mr.K Umeoka (Ceased to be a director from 15th January 2015) - - Ms. A.Gulimire - - Mr.T.Nobunaga - - Mr. J. Hatakeyama - - Mr.W.D.J.R. Silva (Ceased to be a director from 13th June 2014) - 700 Ms.A.A. Aziz (Ceased to be a director from 13th June 2014) - 100,000

Market Price Per Share 2015 2014For the 3 months ended 31st March LKR LKR

Highest 14.50 15.40 Lowest 11.40 12.20 Last Traded 11.50 13.20

Name of Shareholder 31-Mar-15

As at 31st March 2015

As at 31st March 2014

Corporate Information

Name of the Company eChannelling PLC

Company Registration No PQ 205

Registered Office Suncity Towers, Mezzanine Floor, No 18, St Anthony's Mawatha, Colombo 03

Telephone (+94 11) 7 600500

Telefax (+94 11) 2 370979

Website www.echannelling.com

Contant Person Dhammika Alahakoon (Finance Manager)

Legal FormQuoted Public Company incorporated in Sri Lanka in 2000, Ordinary share listed on the Diri Savi Board of the Colombo Stock Exchange

Board of Directors Mr.T Koike - CEOMr. J. Hatakeyama - ChairmanMs. A.GulimireMr.T.NobunagaMr. D.J. StephenMr.S.A. Hettiarachchi

Secretaries of the Company S.S.P Corporate Services (Pvt) LimitedNo 101, Inner Flower RoadColombo 03Tel. 2573894/ 2576871Contact person: Mr.Lalindra Abeysekera

Auditors KPMGCharted Accountants32A, Sir Mohamed Macan Marker MawathaP.O. Box 186Colombo 03

Lawyer(s) D. L. & F. De Saram47 Alexandra Place, Colombo 07

Bankers Sampath Bank PLCNations Trust Bank PLCPeoples Bank Commercial Bank of Ceylon PLCBank of Ceylon