31-Mar-17 As at 30-Sep-17 30-Sep-16

Audited Rs. Rs.

ASSETS

Non Current Assets

549,021,665 Property Plant & Equipment 532,793,824 557,824,447

1,147,700 Intangible Assets 696,025 1,596,908

138,855 Financial Investments 127,720 148,800

19,517,890 Lease Rental Receivable 45,889,961 27,882,188

569,826,110 Total Non Current Assets 579,507,530 587,452,342

Current Assets

3,963,009,285 Inventories 6,633,575,949 3,704,944,291

860,106,411 Trade and Other Receivables 875,522,646 582,022,199

217,822,647 Lease Rental Receivable 196,009,611 281,538,120

16,164,798 Deposits and Prepayments 55,837,845 43,969,248

27,956,204 Related Party Receivables 40,482,034 -

38,841,064 Cash & Bank Balance 49,975,488 57,294,115

5,123,900,409 Total Current Assets 7,851,403,573 4,669,767,973

5,693,726,519 Total Assets 8,430,911,103 5,257,220,315

EQUITY & LIABILITIES

Capital & Reserves

49,375,150 Stated Capital 49,375,150 49,375,150

887,347,500 General Reserve 887,347,500 887,347,500

131,438 Financial Assets - Available for sale Reserve 120,303 141,383

2,011,387,540 Retained Earnings 2,123,984,877 1,868,934,739

2,948,241,629 Equity attributable to owners of the Company 3,060,827,830 2,805,798,772

Non Current Liabilities

67,098,858 Employee Benefits 70,190,776 64,853,353

26,360,703 Deferred Tax Liability 25,186,114 23,753,344

93,459,561 Total Non Current Liabilities 95,376,890 88,606,697

Current Liabilities

852,008,095 Trade & Other Payables 1,107,862,260 574,803,244

3,963,664 Current Tax Liabilities 38,086,032 18,897,429

5,051,234 Provision for Warranty 5,663,501 4,777,043

1,767,067,832 Short term borrowings 3,985,918,518 1,722,619,554

23,934,505 Bank Overdraft 137,176,072 41,717,576

2,652,025,329 Total Current Liabilities 5,274,706,384 2,362,814,846

2,745,484,890 Total Liabilities 5,370,083,273 2,451,421,543

5,693,726,519 Total Equity & Liabilities 8,430,911,103 5,257,220,315

The above figures are provisional and subject to audit.

Chief Financial Officer Chief Executive Officer

A R T Ranasinghe U Gautam

Director Director

Vinod K Dasari D A Abeyawardene

Colombo

16th October 2017

LANKA ASHOK LEYLAND PLC

STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2017

The same Accounting Policies and methods of computation are followed in this Interim Financial Statements

as compared with the most recent audited Financial Statements.

Audited Rs. Rs. Rs. Rs.

Revenue

11,102,863,309 New Vehicle Sales 7,132,805,338 4,745,113,636 50% 3,956,055,988 2,768,496,194

44,301,318 Diesel Generator Set Sales 14,018,729 24,283,877 -42% 6,608,375 13,423,250

157,417,536 Vehicle Repair Income 73,913,486 83,102,415 -11% 44,134,452 53,405,650

93,489,418 Spare Parts Sales 57,659,241 51,092,116 13% 30,623,516 32,144,808

7,416,878 Local Agency Commission 10,901,501 - 0% 6,076,176 -

11,405,488,459 Total Revenue 7,289,298,296 4,903,592,044 49% 4,043,498,507 2,867,469,901

(10,347,126,291) Cost of Sales (6,739,538,933) (4,489,833,542) -50% (3,744,282,683) (2,630,364,543)

1,058,362,168 Gross Profit 549,759,363 413,758,501 33% 299,215,825 237,105,358

39,486,749 Other Income 26,832,385 15,816,281 70% 15,518,295 6,569,372

1,097,848,917 576,591,748 429,574,782 314,734,120 243,674,730

Less :

70,860,841 Selling and Distribution Expenses (21,064,194) 11,069,027 290% 34,567,139 8,215,846

502,356,049 Administrative Expenses 235,124,493 186,989,824 -26% 116,297,644 92,488,443

85,301,673 Other Operating Expenses 39,701,398 32,238,467 -23% 19,828,065 17,496,290

439,330,354 Profit before Interest and Tax 322,830,051 199,277,463 62% 144,041,272 125,474,151

(89,968,301) Net Finance Costs (8,779,680) (49,419,168) 82% 1,523,283 (22,294,890)

349,362,053 Profit before Tax 314,050,372 149,858,295 110% 145,564,555 103,179,261

(111,155,517) Income Tax Expense (92,050,146) (53,001,328) -74% (59,140,157) (33,768,889)

238,206,536 Profit after Tax 222,000,226 96,856,967 129% 86,424,398 69,410,372

Other Comprehensive Income

Items that will never be reclassified to profit and loss

(2,149,249) Defined Benefit Plan - Actuarial Gain / (Loss) (1,080,000) (3,597,000) (540,000) (1,798,500)

601,790 Deferred Tax (charge) / reversal on Defined Benefit Plan 302,400 1,007,160 151,200 503,580

(1,547,459) (777,600) (2,589,840) (388,800) (1,294,920)

Items that are or may be reclassified to profit and loss

2,530 Net change in Fair Value of AFS Financial Assets (11,135) 12,474 (7,738) (12,400)

2,530 (11,135) 12,474 (7,738) (12,400)

(1,544,929) Total Other Comprehensive Income, net of Tax (788,735) (2,577,366) (396,538) (1,307,320)

236,661,608 Total Comprehensive Income for the period 221,211,491 94,279,601 86,027,860 68,103,052

65.79 Basic and Diluted Earnings per Share 61.31 26.75 23.87 19.17

LANKA ASHOK LEYLAND PLC

STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2017

2016/17

Interim Period

06 Months

2017/18

Interim Period

06 Months

For the

Year Ended

31-Mar-17

2017/18

Quarter 02

2016/17

Quarter 02

Stated General Financial Assets - Retained Total

Capital Reserves Available for Sale Earnings

Reserves

Rs. Rs. Rs. Rs. Rs.

Balance as at 01 April 2016 49,375,150 887,347,500 128,908 1,865,188,687 2,802,040,245

Total Comprehencive Income

Profit for the period - - - 96,856,967 96,856,967

Other Comprehensive Income, net of Tax - - 12,474 (2,589,840) (2,577,366)

Total Comprehencive Income - - 12,474 94,267,127 94,279,602

Transactions with owners of the Company

Contribution / Distribution

Dividends - - - (90,521,075) (90,521,075)

Total Transactions with owners of the Company - - - (90,521,075) (90,521,075)

Balance as at 30 September 2016 49,375,150 887,347,500 141,382 1,868,934,740 2,805,798,772

Balance as at 01 April 2017 49,375,150 887,347,500 131,438 2,011,387,541 2,948,241,629

Total Comprehencive Income

Profit for the period - - - 222,000,226 222,000,226

Other Comprehensive Income, net of Tax - - (11,135) (777,600) (788,735)

Total Comprehencive Income - - (11,135) 221,222,626 221,211,491

Transactions with owners of the Company

Contribution / Distribution

Unclaimed Dividend Reversed - - - - -

Dividends - - - (108,625,290) (108,625,290)

Total Transactions with owners of the Company - - - (108,625,290) (108,625,290)

Balance as at 30 September 2017 49,375,150 887,347,500 120,303 2,123,984,877 3,060,827,830

LANKA ASHOK LEYLAND PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2017

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2017 2016

Rs. Rs.

Cash flows from Operating Activities

Audited

349,362,053 Profit Before Tax 314,050,372 149,858,295

Adjustment For :

124,680,637 Depreciation of Property, Plant and Equipment 62,284,341 61,225,246

900,883 Amortization of Intangible Assets 451,675 451,675

9,581,461 Provision for Employee Benefits 4,788,000 4,383,000

44,729,480 Impairment Provision / (Reversal) on Trade & other receivables (35,547,079) (308,833)

(45,328,618) (Reversal) / Charge for Provision for Inventory 41,179,384 38,566,743

124,437,493 Net Finance Costs 56,542,115 67,514,245

(213,521) Interest Income on Fixed Deposit (132,612) -

(12,349,783) Lease Interest Income (9,135,436) (7,070,161)

(7,326,000) Gain on Sale of Property, Plant and Equipment - -

6,446,490 (Reversal)/ Provision of Provision for Free Service 1,173,000 1,371,379

763,461 Provision for Warranty 584,350 489,270

61,234,250 Written-down of Inventory to Net Realisable Value - -

307,556,232 122,187,739 166,622,565

656,918,286 Operating Profit before Working Capital Changes 436,238,111 316,480,860

Working Capital Changes in

(183,430,538) Inventories (2,756,265,550) 94,213,086

(209,853,515) Trade and Other Receivables (24,101,238) 8,105,165

(27,956,204) Related Party Receivables (12,525,830) -

332,186,971 Trade and Other Payables 254,709,083 60,311,449

(89,053,285) (2,538,183,535) 162,629,701

567,865,000 Cash Generated from Operations (2,101,945,424) 479,110,560

(124,122,424) Interest Paid (56,542,115) (67,514,245)

(2,669,480) Employee Benefits paid (2,776,083) (1,164,275)

(119,194,476) Payment of Income Taxes (58,799,967) (48,308,511)

(245,986,381) (118,118,164) (116,987,031)

321,878,620 Net Cash Generated from / (Used in) from Operating Activities (2,220,063,588) 362,123,529

Cash flows from Investing Activities

213,521 Interest received 9,268,048 -

7,326,000 Proceeds from Sale of Property, Plant and Equipment - -

(77,003,204) Acquisition of Property, Plant & Equipment (1,536,999) (64,590,335)

(69,463,683) Net Cash Flows Used in Investing Activities 7,731,050 (64,590,335)

Cash Flows from Financing Activities

8,158,248,315 Short Term Loans Obtained during the period 6,447,264,494 8,871,231,074

(8,344,003,803) Short Term Loans repaid during the period (5,172,429,845) (9,096,800,150)

4,634,690 Net Movement in Import Loans 944,016,038 -

(90,521,075) Dividends Paid (108,625,290) (90,521,075)

(271,641,873) Net Cash Flows (Used in) / Generated from Financing Activities 2,110,225,397 (316,090,151)

(19,226,937) Net Increase in Cash & Cash Equivalents (102,107,142) (18,556,956)

34,133,494 Net Cash & Cash Equivalents at the beginning of the period 14,906,558 34,133,494

14,906,558 Net Cash & Cash Equivalents at the end of the period (87,200,584) 15,576,538

Analysis of Cash & Cash Equivalents at the end of the period

38,841,064 Cash at Bank and in Hand 49,975,488 57,294,115

(23,934,505) Bank Overdrafts (137,176,072) (41,717,576)

14,906,558 (87,200,584) 15,576,538

For the

Year Ended

31-Mar-17

LANKA ASHOK LEYLAND PLC

CASH FLOW STATEMENT

Notes to the Interim Financial Statements

1. Corporate Information

2. Basis of Preperation

3. Accounting Policies

4. Contingent Liabilities

- INCOME TAX ASSESSMENT

- 2009/10

- 2010/11

The Appeal is currently with Tax Appeal Commission.

The Contingent Liability as per the assessments as at 30th June 2017 is Rs. 133.1 Mn.

5. Events After Reporting Date

No circumstances have arisen since the balance sheet date, which would require adjustments or disclosure in the interim Financial Statements.

6. Comparative Information

7. Investor Information

Market value of shares

The market value of an ordinary share of Lanka Ashok Leyland PLC is as follows;

Market Price Trade Date Market Price Trade Date Market Price Trade Date

Highest 1,296.50 4-Jul-17 1,548.00 13-Sep-16 1,548.00 13-Sep-16

Lowest 1,021.00 24-Aug-17 1,225.00 9-Sep-16 1,006.00 22-Feb-17

Last Traded 1,234.90 25-Sep-17 1,250.00 30-Sep-16 1,062.00 28-Mar-17

Market Capitalization

2017 2016

Market Capitalization (Rs.) 4,471,379,021 4,526,053,750

Public Shareholding

No. of Share Holders 642 635

Shareholding 30.38% 30.38%

8. Ratios

Net Assets value per Share 845.34 774.90

Earnings per Share 37.44 26.75

9. Dividends

10.Directors' and Chief Executive Officer's Shareholding

None of the Directors or Chief Executive Officer held shares of the Company during the periods concerned.

As at 31 March

Net Assets value per Share and Earnings per share are based on 3,620,843 shares in issue as at 31st March 2017, which represent the Stated Capital

of the Company.

The Company paid a first and final dividend of Rs. 30 per share totaling to Rs.108.62 million for the financial year 2016/17 on 16th August 2017.

There has not been any significant change in the nature of the contingent liabilities which were disclosed in the Annual Report for the year ended

March 31, 2017.

Where necessary comparative figures have been reclassified to conform with the current year's presentation.

Quarter ended 30/09/2017 Quarter ended 30/09/2016 Year ended 31/03/2017

The appeal was determined favoring Commissioner General of Inland Revenue by the Tax Appeal Commission and a case

stated has been filled with the Court of Appeal by an application made by the Company.

LANKA ASHOK LEYLAND PLC

Lanka Ashok Leyland PLC (“the Company”) is a Public Limited Liability Company incorporated in Sri Lanka under the provision of Companies Act

No. 17 of 1982 and re-registered under the New Companies Act No.07 of 2007. The registered office of the Company is located at Panagoda,

Homagama.

The interim condensed financial statements have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34 "Interim Financial

Reporting" and provide the information as required in terms of Rule 7.4 of the Colombo Stock Exchange.

There are no significant changes in the accounting policies and methods of computation since the publication of financial statements in the annual

report for the year 2016/17.

The Company appealed against two assessments issued by the Department of Inland Revenue related to years of assessment 2009/10 and 2010/11,

and the statues of the same are as follows;

Notes to the Interim Financial Statements (Cont..)

11. Shareholders Information

There were 644 registered shareholders as at 30th September 2017 distributed as follows;

2017 (September) 2016 (September) 2017 (September) 2016 (September) 2017 (September) 2016 (September)

1 - 1,000 624 616 41,104 42,502 1.14 1.17

1,001 - 5,000 13 13 20,771 20,381 0.57 0.56

5,001 - 10,000 1 1 6,293 5,282 0.17 0.15

10,001 - 50,000 1 1 31,250 31,250 0.86 0.86

50,001 - 100,000 - - - - - -

100,001 - 500,000 2 3 432,291 432,291 11.94 11.94

500,001 - 1,000,000 1 1 568,305 568,305 15.70 15.70

OVER 1,000,000 2 2 2,520,832 2,520,832 69.62 69.62

TOTAL 644 637 3,620,843 3,620,843 100.00 100.00

12. List of 20 Major Shareholders

2017 (September) 2016 (September) 2017 (September) 2016 (September)

Lanka Leyland Ltd 1,512,500 1,512,500 41.77 41.77

Ashok Leyland Ltd 1,008,332 1,008,332 27.85 27.85

N Thirimanne 568,305 568,305 15.70 15.70

Perpetual Equities (PVT) LTD 228,356 - 6.31 -

Commercial Trust Technologies (PVT) LTD 203,935 203,935 5.63 5.63

Union Bank of Colombo PLC/ Perpetual Equities (PVT) LTD - 115,506 - 3.19

Perpetual Capital (Pvt) Ltd - 112,850 - 3.12

Sri Lanka Central Transport Board 31,250 31,250 0.86 0.86

J G De Mel 6,293 5,232 0.17 0.14

R P T Adams 2,700 2,700 0.07 0.07

N J Perera 2,600 2,600 0.07 0.07

U.I Suriyabandara 2,176 1,756 0.06 0.05

Bansei Securities Capital (PVT) LTD / M A U Gnanathilaka 2,098 2,128 0.06 0.06

F M Asaf Khan 1,514 1,514 0.06 0.04

Nation Lanka Capital LTD / Nedagamuwage Indika Padma Kumara 1,450 1,450 0.04 0.04

R A Y T Perera 1,300 1,300 0.04 0.04

B Periyasamy 1,250 1,250 0.03 0.03

Bansei Securities Capital (PVT) LTD/ C J Gunarathna 1,205 1,205 0.03 0.03

L A P Perera 1,200 1,200 0.03 0.03

T S G Jayathilaka 1,124 1,124 0.03 0.03

P L Perera 1,100 1,100 0.03 0.03

A Soysa and W L R Soysa 1,054 - 0.03 -

MAJOR SHAREHOLDERSNO. OF SHARES HELD SHARE HOLDING %

LANKA ASHOK LEYLAND PLC

CATEGORY NO.OF SHAREHOLDERS SHAREHOLDING %