u r t r s t - ArpicoNet Asset Value per Share (Rs.) 121.64 98.51 117.04 120.55 97.12 115.64 The above figures are subject to audit These Financial Statements are in compliance with

Interim Financial Statementsfor the three months ended 30 June 2012

Kegalle Plantations PLC

As at 30 June 2012 2011 31 March 2012 2012 2011 31 March 2012

Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000

ASSETS

Non - Current Assets

Leasehold right to bare land 161,901 166,809 163,128 161,901 166,809 163,128

Immovable Estates Assets on Finance Lease 121,550 132,421 124,339 121,550 132,421 124,339

Tangible Assets other than Immature / Mature Plantations 392,697 385,611 400,195 458,310 456,072 467,490

Immature / Mature Plantations 1,210,966 1,045,413 1,181,548 1,210,966 1,045,413 1,181,548

Long Term Investments 450,000 450,000 450,000 419,602 408,654 411,245

2,337,114 2,180,254 2,319,210 2,372,328 2,209,369 2,347,750

Current Assets

Inventories 263,119 344,541 264,270 263,344 346,266 264,494

Trade & Other Receivable 312,786 299,800 275,548 325,523 313,537 281,008

VAT Recoverable 21,492 20,004 21,492 21,499 20,011 28,777

Amounts due from Related Companies 137,698 82,354 104,077 92,617 37,981 59,038

Short Term Investments 1,896,550 1,383,313 1,806,093 1,896,550 1,383,313 1,806,093

Cash and Bank Balances 12,960 32,743 12,783 12,975 32,784 12,802

2,644,605 2,162,755 2,484,263 2,612,508 2,133,892 2,452,212

Total Assets 4,981,719 4,343,009 4,803,473 4,984,837 4,343,261 4,799,962

EQUITY & LIABILITIES

Capital & Reserves

Stated Capital 250,000 250,000 250,000 250,000 250,000 250,000

General Reserve 225,000 225,000 225,000 225,000 225,000 225,000

Retained Profit 2,566,018 1,987,812 2,451,044 2,538,655 1,952,899 2,415,979

Shareholders' Fund 3,041,018 2,462,812 2,926,044 3,013,655 2,427,899 2,890,979

Non - Current Liabilities

Interest Bearing Loans & Borrowings 627,036 502,241 604,444 627,036 502,241 604,444

Retirement Benefit Obligations 404,757 457,516 403,037 404,852 457,611 403,132

Deferred Income 199,939 195,509 199,633 217,482 217,404 218,265

Deferred Tax Liabilities 61,409 - 40,492 61,409 - 40,492

Net Liability to the Lessor - Payable after one year 281,098 285,466 282,381 281,098 285,466 282,381

1,574,239 1,440,732 1,529,987 1,591,877 1,462,722 1,548,714

Current Liabilities

Interest Bearing Loans & Borrowings 123,379 41,592 107,132 123,379 41,592 107,132

Net Liability to the Lessor - Payable within one year 4,449 4,278 4,278 4,449 4,278 4,278

Trade & Other Payables 205,064 333,608 209,406 212,812 341,371 217,139

Dividend Payable 12,617 16,271 1,870 12,617 16,271 1,870

Amounts due to Related Companies 8,007 26,006 5,855 13,102 31,418 10,950

Income Tax Payable 12,946 17,710 18,900 12,946 17,710 18,900

366,462 439,465 347,441 379,305 452,640 360,269

Total Equity & Liabilities 4,981,719 4,343,009 4,803,473 4,984,837 4,343,261 4,799,962

Net Asset Value per Share (Rs.) 121.64 98.51 117.04 120.55 97.12 115.64

The above figures are subject to audit

These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

L C Herath (Mrs.)

Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Signed for and on behalf of the Board of Directors of Kegalle Plantations PLC.

S S Poholiyadde

Director/CEO

Colombo

06 August 2012

BALANCE SHEET

INTERIM FINANCIAL STATEMENTS

J H P Ratnayeke

Director

Company Group

Kegalle Plantations PLC 2012/13 - Q1

Year Ended Year Ended

Variance 31 March Variance 31 March

For the Three Months Ended 30 June 2012 2011 + / (-) 2012 2012 2011 + / (-) 2012

Rs. '000 Rs. '000 % Rs. '000 Rs. '000 Rs. '000 % Rs. '000

Continuing Operations

Revenue 628,123 693,581 (9) 2,809,230 628,123 693,581 (9) 2,809,230

Cost of Sales (475,075) (636,487) 25 (1,937,105) (475,075) (636,487) 25 (1,937,105)

Gross Profit 153,048 57,094 168 872,125 153,048 57,094 168 872,125

Other Operating Income 80,133 35,456 126 229,265 80,133 35,456 126 229,265

Administrative Expenses (15,113) (16,483) 8 (51,703) (15,113) (16,483) 8 (51,703)

Management Fee (26,461) (9,914) (167) (142,967) (26,461) (9,914) (167) (142,967)

Finance Cost (33,603) (25,005) (34) (107,560) (33,603) (25,005) (34) (107,560)

Profit from Operations after Finance Cost 158,004 41,148 284 799,160 158,004 41,148 284 799,160

Share of Result of Associates - - - - 9,724 347 (2,702) 6,020

Profit before Taxation 158,004 41,148 284 799,160 167,728 41,495 304 805,180

Income Tax Expenses (43,031) (9,774) (340) (117,054) (44,397) (9,774) (354) (120,136)

Profit for the Period from continuing operations 114,974 31,374 266 682,106 123,331 31,721 289 685,044

Discontinued Operations

(Loss) after tax for the Period from discontinued operations - - - - (655) (811) 19 (3,554)

Profit for the period 114,974 31,374 266 682,106 122,676 30,910 297 681,490

Basic Earnings Per Share from Continuing Operations (Rs.) 4.60 1.25 27.28 4.93 1.27 27.40

Dividend Per Share (Rs.) - - 7.50 - - 7.50


Company Group


INCOME STATEMENT


For the Three Months Ended 30 June 2012 2011 2012 2011

Rs. '000 Rs. '000 Rs. '000 Rs. '000

CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES

Net Profit before Taxation from continuing operations 158,004 41,148 167,728 41,495

Net (Loss) before Taxation from discontinued operations - - (655) (811)

ADJUSTMENTS FOR

Depreciation, Amortization and Impairment Loss 22,921 21,349 24,603 23,156

Provision for Defined Benefit Plan Costs 10,386 133,160 10,386 133,160

Amortization of Grants (1,437) (1,436) (2,525) (2,524)

Share of Result of Associates - - (9,724) (347)

Finance Cost 10,305 15,443 10,309 15,446

Operating Profit before Working Capital Changes 200,179 209,664 200,122 209,575

(Increase)/Decrease in Trade & Other Receivables (37,238) (69,390) (37,238) (69,390)

(Increase)/Decrease in Inventories 1,151 47,114 1,151 47,114

(Increase)/Decrease in amounts due from Related Companies (33,621) 29,713 (33,621) 29,713

Increase/(Decrease) in Trade & Other Payables (4,343) 14,180 (4,286) 14,269

Increase/(Decrease) in amounts due to Related Companies 2,152 10,208 2,152 10,208

Cash Generated from / (used in) Operations 128,280 241,489 128,280 241,489

Defined Benefit Plan Costs Paid (8,666) (10,670) (8,666) (10,670)

Finance Cost Paid (10,305) (15,443) (10,309) (15,446)

ESC/Income Tax Paid (28,068) (5,690) (28,068) (5,690)

Net Cash from Operating Activities 81,241 209,686 81,237 209,683

CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES

Grant Received 1,743 207 1,743 207

Field Development Expenditure (39,147) (37,661) (39,147) (37,661)

Purchase of Property, Plant & Equipment (1,678) (6,124) (1,678) (6,124)

Long Term Investment - (225,000) - (225,000)

Net Cash from / (used in) Investing Activities (39,082) (268,578) (39,082) (268,578)

CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES

Dividend Paid 10,747 3,795 10,747 3,795

Payment of Government Lease Rentals (1,112) (1,028) (1,112) (1,028)

Proceeds from Loans 68,620 213,240 68,620 213,240

Repayment of Loans (25,694) (12,978) (25,694) (12,978)

Net Cash from / (used in) Financing Activities 52,561 203,029 52,561 203,029

Net Increase/(Decrease) in Cash & Cash Equivalents 94,720 144,137 94,716 144,134

Cash & Cash Equivalents at the beginning of the period Note A 1,814,790 1,271,919 1,814,809 1,271,963

Cash & Cash Equivalents at the end of the period Note B 1,909,510 1,416,056 1,909,525 1,416,097

NOTES

A. Cash & Cash Equivalents at the beginning of the period

Cash & Bank Balances 12,783 10,263 12,802 10,307

Investment in Treasury Bills, REPO & Others 1,806,093 1,289,494 1,806,093 1,289,494

Bank Overdrafts (4,086) (27,838) (4,086) (27,838)

1,814,790 1,271,919 1,814,809 1,271,963

B. Cash & Cash Equivalents at the end of the period

Cash & Bank Balances 12,960 32,743 12,975 32,784

Investment in Treasury Bills, REPO & Others 1,896,550 1,383,313 1,896,550 1,383,313

1,909,510 1,416,056 1,909,525 1,416,097



CASH FLOW STATEMENT

Company Group


For the Three Months Ended 30 June 2012

Stated General Accumulated Total Stated General Accumulated Total

Capital Reserve Profit Capital Reserve Profit

Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000

Balance as at 31 March 2011 250,000 225,000 1,968,938 2,443,938 250,000 225,000 1,934,489 2,409,489

Net Profit for the period - - 31,374 31,374 - - 30,910 30,910

Dividend Paid - (12,500) (12,500) - - (12,500) (12,500)

Balance as at 30 June 2011 250,000 225,000 1,987,812 2,462,812 250,000 225,000 1,952,899 2,427,899

Balance as at 31 March 2012 250,000 225,000 2,451,044 2,926,044 250,000 225,000 2,415,979 2,890,979

Net Profit for the period - - 114,974 114,974 - - 122,676 122,676

Dividend Paid - - - - - - -

Balance as at 30 June 2012 250,000 225,000 2,566,018 3,041,018 250,000 225,000 2,538,655 3,013,655


31 March

For the Three Months Ended 30 June 2012 2011 2012

Rs. Rs. Rs.

1. Market Price per Share

Highest 110.00 234.90 234.90

Lowest 86.20 180.50 76.00

Last Traded 91.00 183.10 103.00

2.

3.

4.

5.

6.


Company Group

STATEMENT OF CHANGES IN EQUITY

The Interim Financial Statements of the Company/Group are unaudited and have been prepared on the basis of the same accounting

policies and methods applied for the year ended 31 March 2012 and are in compliance with Sri Lanka Accounting Standard 35 - Interim

Financial Reporting. Further, provisions of the Companies Act No. 7 of 2007 have been considered in preparing the Interim Financial

Statements of the Company/Group.

The presentation and classification of figures for the corresponding period of the previous year have been amended, where relevant, for

better presentation and to be comparable with those of the current year.

Stated Capital of Kegalle Plantations PLC amounts to Rs. 250,000,010 represented by 25,000,001 Ordinary Shares.

NOTES TO THE FINANCIAL STATEMENTS

The Company is in the process of adopting Sri Lanka Accounting Standards (SLFRS/LKAS) with effect from 1st April 2012 and the impact

to the Statement of Comprehensive Income and Net Assets Base has not been determined and such work is presently in progress. The

Interim Financial Statements are also prepared in accordance with the second option given in the "Ruling on the Comparative Figures in

the Interim Financial Statements" issued by The Institute of Chartered Accountants of Sri Lanka dated 2nd March 2012.

There has been no material changes in the nature of the contingent liabilities, other than what was disclosed in the Annual Report for the

year ended 31 March 2012.

There are no other events subsequent to the Balance Sheet date, which require disclosure in the Interim Financial Statements.


NOTES TO THE FINANCIAL STATEMENTS CONTD…

7. Twenty largest shareholders of the Company are as follows ;

As at

Number of

Shares

% of the

HoldingNumber of

Shares

% of the

Holding

RPC Plantation Management Services (Pvt) Ltd 17,625,282 70.50% 17,591,500 70.37%

J B Cocoshell (Pvt) Ltd 606,500 2.43% 606,500 2.43%

Deutsche Bank AG As Trustee for Sri Lanka 465,581 1.86% - -

Almar Trading Co. (Pvt) Ltd 270,000 1.08% 270,000 1.08%

HSBC International Nominees Ltd-SSBT-Deustche Bank 200,000 0.80% 200,000 0.80%

Tranz Dominion, L.L.C 185,000 0.74% 185,000 0.74%

Seylan Bank PLC / Symphony Capital Ltd 176,636 0.71% 123,798 0.50%

Mr. A. Singh 134,200 0.54% 118,800 0.48%

Waldock Mackenzie Ltd / Hi-Line Trading (Pvt) Ltd 131,999 0.53% 131,999 0.53%

Waldock Mackenzie Ltd / Hi-Line Towers (Pvt) Ltd 129,600 0.52% 129,600 0.52%

Employees Provident Fund 122,300 0.49% 122,300 0.49%

Mr. M. M. Fuad 102,645 0.41% 117,600 0.47%

Deutsche Bank AG As Trustee for Namal Acuity Fund 100,000 0.40% 100,000 0.40%

Deutsche Bank AG As Trustee for National Equity Fund 100,000 0.40% 100,000 0.40%

Cocoshell Activated Carbon Company Limited 97,700 0.39% 97,700 0.39%

Waldock Mackenzie Ltd / Symphony Capital Ltd 94,200 0.38% 94,200 0.38%

Mr. M. J. Fernando 85,500 0.34% 85,500 0.34%

Commercial Bank of Ceylon PLC / D. S. J. V. Costa 69,200 0.28% 69,200 0.28%

Askold (Pvt) Ltd 67,250 0.27% 75,000 0.30%

Deutsche Bank AG As Trustee for Comtrust Equity Fund 61,200 0.24% - -

Sub Total 20,824,793 83.30% - -

Balance held by 9,313 Shareholders

(31 March 2012 - 9,337 Shareholders) 4,175,208 16.70% 4,344,704 17.38%

Total Shares 25,000,001 100.00% 25,000,001 100.00%

The percentage of shares held as follows;

Number of

Shares

% of the

HoldingNumber of

Shares

% of the

Holding

Public Holding 7,374,412 29.50% 7,408,194 29.63%

Other Holding 17,625,589 70.50% 17,591,807 70.37%

25,000,001 100.00% 25,000,001 100.00%

8. The number of shares held by the Board of Directors are as follows ;

As at 30 June 201231 March

2012

Dr. Sena Yaddehige - -

Mr. J H P Ratnayeke - -

Mr. S S Poholiyadde 307 307

Prof. R C W M R A Nugawela - -

Dr. S S B D G Jayawardena - -


Number of Shares

30 June 2012 31 March 2012

30 June 2012 31 March 2012


Company

Rubber Tea Coconut Others Total

For the Three Months Ended 30 June 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000

Revenue 350,501 407,709 250,913 251,642 11,088 13,690 15,621 20,538 628,123 693,579

Revenue Expenditure (198,589) (213,803) (236,733) (262,497) (6,811) (6,040) - - (442,132) (482,340)

Depreciation / Amortization (15,172) (13,387) (7,115) (7,327) (248) (248) (22) (22) (22,557) (20,984)

Other Non Cash Expenses - Gratuity (6,207) (70,764) (4,178) (62,397) - - - - (10,386) (133,161)

Segment Results 130,533 109,755 2,887 (80,579) 4,029 7,402 15,599 20,516 153,048 57,094

Other Operating Income 80,133 35,456

Administrative Expenses (15,113) (16,483)

Management Fee (26,461) (9,914)

Finance Cost (33,603) (25,005)

Income Tax Expenses (43,031) (9,774)

Profit for the Period 114,974 31,374

Group

Rubber Tea Coconut Others Total

For the Three Months Ended 30 June 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000

Revenue 350,501 407,709 250,913 251,642 11,088 13,690 15,621 20,538 628,123 693,579

Revenue Expenditure (198,589) (213,803) (236,733) (262,497) (6,811) (6,040) - - (442,132) (482,340)

Depreciation / Amortization (15,172) (13,387) (7,115) (7,327) (248) (248) (22) (22) (22,557) (20,984)

Other Non Cash Expenses - Gratuity (6,207) (70,764) (4,178) (62,397) - - - - (10,386) (133,161)

Segment Results 130,533 109,755 2,887 (80,579) 4,029 7,402 15,599 20,516 153,048 57,094

Other Operating Income 80,133 35,456

Administrative Expenses (15,113) (16,483)

Management Fee (26,461) (9,914)

Finance Cost (33,603) (25,005)

Profit from Operations after Finance Cost 158,004 41,148

Share of Result of Associates 9,724 347

Profit before Taxation 167,728 41,495

Income Tax Expenses (44,397) (9,774)

Profit for the period from continuing operations 123,331 31,721

(Loss) after tax for the period from discontinued operations (655) (811)

Profit for the Period 122,676 30,910



SEGMENT INFORMATION

SEGMENT INFORMATION


CORPORATE INFORMATION

Name of the Company : KEGALLE PLANTATIONS PLC

Legal Form : A Quoted Public Company with limited liability,

Incorporated in Sri Lanka under the Companies Act No. 07 of 2007.

Date of Incorporation : 22 June 1992

Company Registration No : New Registration No. P Q 135 [ Old No. N (PBS/CGB) 140]

Head/Registered Office : No. 310, High Level Road, Nawinna, Maharagama, Sri Lanka.

Principal Business Activities : Cultivation, Manufacture and Sale of Rubber, Tea, Coconut,

Cardamom & other agricultural produce.

Ultimate Parent Enterprise : Richard Pieris & Company PLC

No. 310, High Level Road, Nawinna, Maharagama, Sri Lanka.

Board of Directors : Dr. Sena Yaddehige - Chairman

Mr. J H P Ratnayeke - Deputy Chairman

Mr. S S Poholiyadde - Chief Executive Officer

Prof. R C W M R A Nugawela

Dr. S S B D G Jayawardena

Stock Exchange Listing : The Ordinary Shares of the Company are listed with the

Colombo Stock Exchange of Sri Lanka.

Secretaries : Richard Pieris Group Services (Pvt) Limited

No. 310, High Level Road, Nawinna, Maharagama, Sri Lanka

Telephone : + (94) 11 4310500

Auditors : Messrs. Ernst & Young, Chartered Accountants,

201, De Saram Place, Colombo 10.

Bankers : Hatton National Bank PLC

Bank of Ceylon - Corporate Branch & Regional Branches

NDB Bank PLC

Peoples Bank

Seylan Bank PLC

Commercial Bank of Ceylon PLC

Legal Advisors : Paul Ratnayeke Associates

International Legal Consultants,

Solicitors and Attorneys-at-Law,

No. 59, Gregory’s Road,

Colombo 7, Sri Lanka.

Contact Details : Telephone : + (94) 11 4310500

Facsimile : + (94) 11 4310799

Website : www.arpico.com

E-mail : [email protected]

Kegalle Plantations PLC310, High Level Road,Nawinna, Maharagama, Sri Lanka.

Documents

u r t r s t - ArpicoNet Asset Value per Share (Rs.) 121.64 98.51 117.04 120.55 97.12 115.64 The above figures are subject to audit These Financial Statements are in compliance with