ROYAL CERAMICS LANKA PLC

INTERIM FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2024
 ROYAL CERAMICS LANKA PLC
STATEMENT OF FINANCIAL POSITION
COMPANY GROUP
AS AT 31.03.2024 31.03.2023 31.03.2024 31.03.2023

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

ASSETS
Non-Current Assets
Property, Plant & Equipment 12,619,373 11,585,497 41,231,575 33,140,598
Investment Properties - - 2,135,453 2,069,663
Investments in Subsidiaries 6,738,717 6,738,717 - -
Investments in Associate 3,488,164 3,488,164 15,135,984 13,349,775
Intangible Assets 101,212 128,379 1,374,539 1,306,408
Right of Use Lease Assets 866,797 946,301 1,154,344 1,112,520
Deferred Tax Assets - - 206,886 146,833
23,814,263 22,887,058 61,238,781 51,125,797

Current Assets
Inventories 7,179,020 6,016,180 28,689,598 25,061,118
Trade and Other Receivables 713,992 750,186 5,736,080 6,427,329
Amounts Due from Related Parties 1,983,174 1,911,783 - -
Other Non Financial Assets 443,771 661,079 2,723,546 4,206,290
Contract Assets - - 30,033 32,343
Other Financial Assets 64,471 63,416 71,832 67,870
Income Tax Recoverable - - 13,100 -
Cash and Cash Equivalents 1,080,479 802,328 3,080,062 3,601,536
11,464,907 10,204,972 40,344,251 39,396,486
Assets held for sale - - 36,056 42,862
11,464,907 10,204,972 40,380,307 39,439,348
Total Assets 35,279,170 33,092,030 101,619,088 90,565,145

EQUITY AND LIABILITIES

Equity
Stated Capital 1,368,673 1,368,673 1,368,673 1,368,673
Reserves 2,423,467 2,358,007 5,568,919 4,795,193
Retained Earnings 18,494,207 16,416,951 37,830,410 33,427,743
22,286,347 20,143,631 44,768,002 39,591,609
Non Controlling Interest - - 15,345,120 13,814,193
Total Equity 22,286,347 20,143,631 60,113,122 53,405,802

Non-Current Liabilities
Interest Bearing Loans & Borrowings 2,353,862 1,771,352 10,248,448 2,643,821
Deferred Tax Liabilities 1,709,778 1,684,184 5,606,394 5,114,903
Retirement Benefit Liability 716,070 614,299 1,476,620 1,184,427
Other Non-Current Liabilities - - 34,500 15,000
4,779,710 4,069,835 17,365,962 8,958,151
Current Liabilities
Trade and Other Payables 1,608,884 1,425,529 6,787,394 5,965,838
Amounts Due to Related Parties 47,398 50,352 139,500 260,731
Other Current Liabilities 1,243,610 2,692,376 1,611,235 3,093,257
Dividend Payable 252,754 260,964 243,375 504,999
Income Tax Liabilities 407,154 666,584 1,360,601 1,233,239
Interest Bearing Loans & Borrowings 4,653,313 3,782,759 13,997,704 16,942,471
8,213,113 8,878,564 24,139,809 28,000,535
Liabilities directly associated with the assets held for sale - - 195 200,657
8,213,113 8,878,564 24,140,004 28,201,192
Total Equity and Liabilities 35,279,170 33,092,030 101,619,088 90,565,145

Net Assets Per Share (Rs.) 20.12 18.18 40.41 35.74

These financial statements are in compliance with the requirements of the Companies Act No 7 of 2007.

Sgd.
…………………………
Haresh Somashantha
Director Finance

The Board of Directors is responsible for the preparation and presentation of these financial statements.
Signed for and on behalf of the board by

Sgd. Sgd.
………………………… ………………………
A M Weerasinghe Aravinda Perera
Deputy Chairman Managing Director

The Accounting Policies and Notes on pages 6 through 9 form an integral part of these financial statements.

May 31, 2024

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 ROYAL CERAMICS LANKA PLC
STATEMENT OF PROFIT OR LOSS

COMPANY GROUP
For the Year ended 31st March 2024 2023 2024 2023 2024 2023 2024 2023
QUARTER QUARTER CUMULATIVE CUMULATIVE variance % QUARTER QUARTER CUMULATIVE CUMULATIVE variance %

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

Gross Revenue 3,620,705 5,686,876 20,073,741 19,114,938 5 9,864,491 18,119,150 64,106,696 70,296,098 (9)

Net Revenue 3,128,677 4,980,376 17,550,480 16,908,567 4 12,987,210 15,976,593 61,192,057 63,206,259 (3)

Cost of Sales (1,401,756) (2,839,509) (8,382,508) (9,249,778) (9) (8,307,233) (9,660,260) (37,704,491) (37,676,083) 0

Gross Profit 1,726,921 2,140,867 9,167,972 7,658,789 20 4,679,977 6,316,333 23,487,566 25,530,176 (8)

Other Operating Income 1,018,461 1,165,088 2,073,944 2,386,531 (13) 372,228 (249,485) 539,635 471,242 15

Distribution Expenses (886,931) (893,987) (3,591,992) (3,278,259) 10 (1,928,337) (2,111,759) (8,253,507) (7,972,458) 4

Administrative Expenses (249,289) (278,676) (1,184,692) (902,665) 31 (972,923) (1,082,132) (3,910,986) (3,267,956) 20

Other Operating Expenses (45,620) 17,138 (52,508) 20,709 (354) (157,440) 167,866 (323,927) (222,547) 46

Finance Expenses (144,498) (188,439) (684,028) (423,197) 62 (585,898) (1,145,993) (2,524,386) (3,556,717) (29)

Finance Income 75,767 107,902 286,751 590,244 (51) 89,066 185,907 358,330 1,152,595 (69)

Profit Before Tax 1,494,811 2,069,892 6,015,447 6,052,151 (1) 1,496,673 2,080,737 9,372,725 12,134,335 (23)

Share of Associate Company's Profit - - - - 788,660 731,797 2,706,653 2,312,744 17

Net Profit Before Tax 1,494,811 2,069,892 6,015,447 6,052,151 (1) 2,285,333 2,812,534 12,079,378 14,447,079 (16)

Tax (Expense)/Reversal (160,209) (274,815) (1,203,761) (1,304,802) (8) (602,977) (1,064,051) (3,023,279) (4,229,132) (29)

Net Profit After Tax from Continuing Operations 1,334,602 1,795,077 4,811,686 4,747,350 1 1,682,356 1,748,483 9,056,099 10,217,947 (11)

Profit/(Loss) after tax from discontinued operations - - - - 183,733 274,126 177,410 375,988 (53)

Net Profit for the year 1,334,602 1,795,077 4,811,686 4,747,350 1 1,866,089 2,022,609 9,233,509 10,593,935 (13)

Attributable to
Equity holders of the Parent 1,334,602 1,795,077 4,811,686 4,747,350 1 1,497,861 1,589,483 7,216,357 7,747,076 (7)
Non Controlling Interest - - - - 368,228 433,126 2,017,152 2,846,859 (29)
Net Profit for the year 1,334,602 1,795,077 4,811,686 4,747,350 1 1,866,089 2,022,609 9,233,509 10,593,935 (13)

Basic Earnings Per Share (Rs.) 1.20 1.62 4.34 4.29 1.35 1.43 6.51 6.99

The Accounting Policies and Notes on pages 6 through 9 form an integral part of these financial statements.

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 ROYAL CERAMICS LANKA PLC
STATEMENT OF COMPREHENSIVE INCOME

COMPANY GROUP
For the Year ended 31st March 2024 2023 2024 2023 2024 2023 2024 2023
QUARTER QUARTER CUMULATIVE CUMULATIVE variance % QUARTER QUARTER CUMULATIVE CUMULATIVE variance %

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

Net Profit / (Loss) for the Year 1,334,602 1,795,077 4,811,686 4,747,350 1 1,866,089 2,022,609 9,233,509 10,593,935 (13)

Other Comprehensive Income

Other Comprehensive Income to be reclassified to profit or loss in subsequent periods (net of tax):

Exchange Differences on translation of foreign operations - - - - (11,996) 20,298 (19,253) 7,589 354
Exchange Differences on translation of foreign operations of Associate Company - - - - (16,786) (22,884) (19,051) (18,409) 3
- - - - (28,782) (2,586) (38,304) (10,820) 254

Other Comprehensive Income not to be reclassified to profit or loss in subsequent periods (net of tax):

Revaluation of Land and Building 65,460 - 65,460 - 100 1,675,329 (24,585) 1,669,568 (24,585) 6891
Effect of tax rate change on revaluation - - - (400,466) - - - (887,432) 100
Revaluation of Lands of Associate company - - - - - 160,342 - 160,342 100
Net (loss)/gain on Investment in Equity Instruments - Fair Value Through OCI - - - - 5,169 4,544 313 8,180 (96)
Actuarial (Loss)/Gain on Employee Benefits 24,751 2,585 24,751 2,585 858 (103,548) 7,913 (103,548) 7,760 (1434)
Actuarial (Loss)/Gain on Employee Benefits of Associate Company - - - - (11,268) 2,018 (11,268) 2,018 (658)
Net Other Comprehensive Income from Discountinued Operation - - - - - (36,233) - (36,232) (100)
90,211 2,585 90,211 (397,881) - 1,565,682 113,999 1,555,065 (769,949) (302)

Other comprehensive income/(loss) for the Year, net of tax 90,211 2,585 90,211 (397,881) - 1,536,900 111,413 1,516,761 (780,769) (294)

Total Comprehensive Income net of Tax 1,424,813 1,797,662 4,901,897 4,349,469 13 3,402,989 2,134,022 10,750,270 9,813,166 10

Attributable to
Equity holders of the Parent 1,424,813 1,797,662 4,901,897 4,349,469 13 2,238,416 1,729,097 7,940,546 7,230,274 10
Non Controlling Interest - - - - 1,164,573 404,925 2,809,724 2,582,892 9
Net Profit / (Loss) for the Year 1,424,813 1,797,662 4,901,897 4,349,469 13 3,402,989 2,134,022 10,750,270 9,813,166 10

The Accounting Policies and Notes on pages 6 through 9 form an integral part of these financial statements.

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 ROYAL CERAMICS LANKA PLC
STATEMENT OF CHANGES IN EQUITY - COMPANY
Stated Revaluation Retained
Capital Reserve Earnings Total
Rs. 000's Rs. 000's Rs. 000's Rs. 000's

Balance as at 1st April 2022 1,368,673 2,758,474 15,534,919 19,662,066

Adjustment for Surcharge Tax levied - - (388,152) (388,152)
Adjusted Balance as at 1st April 2022 1,368,673 2,758,474 15,146,767 19,273,914
Net Profit for the Year - - 4,747,350 4,747,350
Other comprehensive income - (400,466) 2,585 (397,881)
Total Comprehensive income - (400,466) 4,749,935 4,349,469
Dividends - 2022/2023 - - (3,489,866) (3,489,866)
Dividend Write back 10,114 10,114
Balance as at 31st March 2023 1,368,673 2,358,007 16,416,951 20,143,631

Balance as at 1st April 2023 1,368,673 2,358,007 16,416,950 20,143,631

Net Profit for the Year - - 4,811,686 4,811,686
Other comprehensive income - 65,460 24,751 90,211
Total Comprehensive income - 65,460 4,836,438 4,901,897
Dividends - 2023/2024 - - (2,769,735) (2,769,735)
Dividend Write back - - 10,553 10,553
Balance as at 31st March 2024 1,368,673 2,423,467 18,494,207 22,286,347
- - (0.00)
STATEMENT OF CHANGES IN EQUITY - GROUP

Attributable to owners of the parent

Stated Revaluation Fair Value Foreign Currency Retained Non-Controlling
Capital Reserve Reserve Translation Reserve Earnings Interest Total
Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's

Balance as at 1st April 2022 1,368,673 5,333,057 (20,499) 9,592 30,632,548 13,875,753 51,199,124
Adjustment for Surcharge Tax levied - - - - (1,475,180) (489,820) (1,965,000)
Adjusted Balance as at 1st April 2022 1,368,673 5,333,057 (20,499) 9,592 29,157,368 13,385,933 49,234,124
Net Profit for the Year - - - - 7,747,076 2,846,859 10,593,935
Other comprehensive income - (521,693) 8,180 (13,444) 10,154 (263,968) (780,771)
Total Comprehensive income - (521,693) 8,180 (13,444) 7,757,230 2,582,892 9,813,164
Dividends - 2022/2023 - - - - (3,489,866) - (3,489,866)
Write back of Unclaimed Dividends - - - - 11,207 393 11,600
Subsidiary Dividends to Minority Shareholders - - - - - (1,888,128) (1,888,128)
Effect of disposal of Non controlling interest - - - - - (455,677) (455,677)
Change in Holding without change in control - - - - (8,194) 188,779 180,585
Balance as at 31st March 2023 1,368,673 4,811,364 (12,319) (3,852) 33,427,743 13,814,193 53,405,802

Balance as at 1st April 2023 1,368,673 4,811,364 (12,319) (3,852) 33,427,743 13,814,193 53,405,802
Net Profit for the Year - - - - 7,216,358 2,017,152 9,233,509
Other comprehensive income - 788,350 313 (14,097) (50,376) 792,572 1,516,761
Total Comprehensive income - 788,350 313 (14,097) 7,165,982 2,809,724 10,750,270
Dividends - 2023/2024 - - - - (2,769,735) - (2,769,735)
Dividend Write back - - - - 18,022 6,391 24,413
Transfer from revaluation reserve on disposal of land (839) 839
Subsidiary Dividends to Minority Shareholders - - - - - (1,116,286) (1,116,286)
Acquisition of a subsidiary - - - - - (239,352) (239,352)
Acquisition of non-controlling interests (12,442) 12,442 -
Proceeds on issue of shares to minority shareholders - - - - - 58,007 58,007
Balance as at 31st March 2024 1,368,673 5,598,874 (12,006) (17,949) 37,830,410 15,345,120 60,113,122

The Accounting Policies and Notes on pages 6 through 9 form an integral part of these financial statements.

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 ROYAL CERAMICS LANKA PLC
CASH FLOW STATEMENT
COMPANY GROUP
For the Year ended 31st March 2024 2023 2024 2023

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

Cash Flows From / (Used in) Operating Activities

Profit before tax from continuing operations 6,015,447 6,052,151 12,079,378 14,447,079
Profit/(Loss) before tax from discontinued operations - - 177,410 863,018
Profit before tax 6,015,447 6,052,151 12,256,787 15,310,097
Adjustments for
Dividend Income (1,668,315) (2,014,462) (1,016) (991)
Interest Income (286,751) (590,244) (350,243) (1,157,700)
Depreciation of Property, Plant & Equipment 853,922 742,329 2,119,561 2,039,123
Amortisation of Right of use Lease Assets 176,784 174,675 275,739 275,807
(Profit)/Loss on Sale of Property, Plant & Equipment (4,569) (4,000) (31,814) (5,111)
Finance Costs 684,028 423,197 2,524,137 3,898,629
Write back of Related Party Balances -
(Profit)/loss on Disposal of Subsidiary - - - (215,955)
Movements in Provisions and Write-down of Inventories 68,404 141,249 314,772 291,594
Write-down of inventories - 1,058
written off of Capital expenditure - - - 24,121
Provision for related party Receivables - 230 - -
Amortization of Intangible Assets 29,167 20,961 47,224 31,715
Unrealised (Gain)/loss on foreign exchange 51,174 (166,084) 265,381 (309,620)
Allowance for Impairment of Trade Receivable (822) 1,862 17,529 26,234
Deferred income / capital grants amortization - - - (7,671)
Changing in Fair Value of Biological Assets - - - 8,042
Revaluation Gain on Investment Property - - (65,790) (22,272)
Provision /(Reversal) for change in market value of the investments 4,292 (20,709) 4,292 (20,709)
Profit Share of Investment in associate - - (2,706,653) (2,312,743)
Provision for Defined Benefit Plans - Gratuity 158,702 123,639 299,338 342,918

Operating Profit/(Loss) before Working Capital Changes 6,081,463 4,884,794 14,970,303 18,195,508

(Increase)/ Decrease in Inventories (1,231,245) (3,248,731) (3,623,621) (12,366,338)

(Increase)/ Decrease in Trade and Other Receivables 48,698 (224,548) (3,528) (594,863)
(Increase)/ Decrease in Amounts Due from Related Parties (71,391) (1,833,095) - -
(Increase)/ Decrease in Other Non Financial Assets 175,457 (260,560) 1,480,648 (1,429,277)
Increase/ (Decrease) in Trade and Other Payables 161,898 87,789 947,936 (457,302)
Increase /(Decrease) in Amounts Due to Related Parties (2,953) 26,890 (93,389) 140,737
Increase/ (Decrease) in Other Current Liabilities (1,448,766) (3,230,673) (1,945,190) (3,594,510)

Cash Generated from Operations 3,713,161 (3,798,134) 11,733,158 (106,046)

Finance Costs Paid (665,547) (405,817) (2,666,891) (3,876,049)

Defined Benefit Plan Costs Paid (21,572) (20,739) (152,252) (221,025)
Income Tax Paid (1,476,257) (1,386,117) (3,178,143) (5,157,083)
Net Cash Flows From/(Used in) Operating Activities 1,549,785 (5,610,806) 5,735,873 (9,360,202)

Cash Flows from / (Used in) Investing Activities

Acquisition of Property, Plant & Equipment (1,794,300) (2,374,183) (7,797,950) (5,949,946)

Acquisition of Investment Property - - - (2,338)
Acquisition of Plantation Assets - - - (3,706)
Proceeds from Sale of Property, Plant & Equipment 4,583 4,000 33,451 10,187
Acquisition of Intangible Assets (2,000) (33,086) (17,007) (163,320)
Acquisition of Short-Term Investment (5,347) (58,277) (7,745) 10,491
Net cash outflow from acquisition of a subsidiary - - (3,315) -
Proceeds from Disposal of subsidiary - - 695,180 459,625
Interest Received 286,751 590,244 350,243 1,157,700
Dividends Received 1,658,937 2,014,462 890,438 288,986
Net Cash Flows from/(Used in) Investing Activities 148,623 143,159 (5,856,705) (4,192,322)

Cash Flows from / (Used in) Financing Activities

Proceeds From Interest Bearing Loans & Borrowings 8,059,513 2,773,124 41,835,959 27,418,916
Repayment of Interest Bearing Loans & Borrowings (5,892,308) (1,607,525) (36,433,396) (22,244,080)
Capital Repayments under Lease Liabilities (111,297) (100,355) (188,992) (160,179)
Dividends Paid on Ordinary Shares (2,767,392) (3,270,843) (2,767,392) (3,270,843)
Dividend paid to non controlling interest - - (1,123,319) (1,723,819)
Proceeds on issue of shares to minority shareholders - - 58,007 27,713
Payments on Share Repurchase - - - -
Proceeds from Refundable Deposit - - 19,500 -
Capital grants received - - - 821
Net Cash Flows from/(Used in) Financing Activities (711,484) (2,205,598) 1,400,368 48,528

Net Increase / (Decrease) in Cash and Cash Equivalents 986,924 (7,673,246) 1,279,536 (13,503,996)
Net foreign exchange difference (50,276) 71,146 (100,275) 20,463
Cash and Cash Equivalents at the beginning of the year (571,160) 7,030,940 (154,386) 13,329,147
Cash and Cash Equivalents at the end of the year 365,488 (571,160) 1,024,874 (154,386)

ANALYSIS OF CASH AND CASH EQUIVALENTS

Favourable balances
Cash in hand and at bank in current accounts 402,106 136,443 1,635,381 1,566,799
Cash at bank in savings accounts and fixed deposits with short maturities 678,373 665,885 1,444,679 2,034,737
Cash in hand and at bank attributable to discontinued operations - - 56 6,862

Unfavourable balances
Bank overdrafts (714,992) (1,373,488) (2,055,242) (3,674,731)
Bank overdrafts attributable to discontinued operations - - - (88,053)
Cash and Cash Equivalents at the end of the year 365,488 (571,160) 1,024,874 (154,386)

The Accounting Policies and Notes on pages 6 through 9 form an integral part of these financial statements.

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 ROYAL CERAMICS LANKA PLC
NOTES TO THE FINANCIAL STATEMENTS

1. Corporate Information
Royal Ceramics Lanka PLC (“the Company”) is a public limited liability company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock
Exchange. The registered office of the Company is located at No.20, R.A. De Mel Mawatha, Colombo 03.

The Consolidated Financial Statements of the company for the quarter and the period ended 31st December 2023 comprise the Royal Ceramics Lanka PLC
(Parent Company) and its subsidiaries (together referred as the “Group”), namely Royal Ceramics Distributors (Private) Limited, Rocell Bathware Limited, Ever
Paint and Chemical Industries (Private) Limited, Biscuits and Chocolate Company Limited, Rocell Pty Ltd-Australia, Nilano Garments (Private) Limited, Rocell
Properties Limited, CP Holding (Private) Limited, Lanka Ceramic PLC, LC Plantation Project Limited, Lanka Walltiles PLC and its subsidiaries.

2.Figures for the quarter and the year ended 31st March 2024 are provisional and subject to audit.

3. Number of fully paid ordinary shares as at 31st March 2024 is 1,107,893,840 (31st March 2023 - 1,107,893,840).

4.There has not been a significant change in the nature of the contingent liabilities which were disclosed in the Annual Report for the year ended 31st March
2023.

5. Fair value measurement and related fair value disclosures

The fair values of all the financial assets and financial liabilities recognized during the financial year were not materially different from the transaction prices at
the date of initial recognition. There were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 categories as per the fair value
hierarchy, during the financial year. Further, carrying values of financial assets and financial liabilities as at the end of the reporting period were assumed that the
respective carrying amounts approximates their fair values.

6. Events Occurring After the Balance Sheet Date

Subject to the approval of the shareholders at the Annual General Meeting, Directors recommended payment of a final dividend of Rs. 0.90 per share for the
year ended 31 March 2023 on 28 May 2024.

Other than the above there have been no material events occurring after the reporting date that require adjustment or disclosure in the financial statements.

7. Details of the direct Subsidiaries of the Company as at 31st March 2024, is as follows.

Company Name Year of Incorporation Ownership (%)

Rocell Bathware Ltd 2005/2006 100%
Royal Ceramics Distributors (Pvt) Ltd 1993/1994 100%
Ever Paint and Chemical Industries (Pvt) Ltd 2002/2003 100%
Lanka Ceramic PLC 1991/1992 74%
Biscuits and Chocolate Company Ltd 2006/2007 69%
Nilano Garments (Pvt) Ltd 1984/1985 100%
CP Holding (Pvt) Ltd 2011/2012 67%
Lanka Walltiles PLC 1975/1976 55%

8. Basis of Preparation
The interim condensed consolidated financial statements for the quarter and the year ended 31st March 2024 have been prepared in accordance with LKAS 34
Interim Financial Reporting.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should
be read in conjunction with the Group’s annual consolidated financial statements as at 31 March 2023.

The Financial Statements of the Company and the Group have been prepared on a historical cost basis, except for lands, buildings and financial assets at fair
value through profit or loss that have been valued at fair value.

9. Significant Accounting Policies

The changes to accounting policies which have been disclosed in the company's Annual Report 2022/23, have been applied consistently to all periods presented
in these condensed Financial Statements.

The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be
comparable with those of the current period.

10. On 13 November 2023, Lanka Tiles PLC, a subsidiary of Lanka Walltiles PLC, accepted and acquired the right-issued shares of 1,497,812 for the amount of
Rs.60.4 Mn of Lanka Swisstek (Pvt) Ltd, formerly known as Lanka Tiles India (Pvt) Ltd, to secure the 51% ownership interest in the voting shares. The
proceeds of the right issue will be utilized for expanding business operations in India.

11. On 22 August 2023, Lanka Walltiles PLC invested in 100% of the voting shares of Lankatiles USA Inc, a non-listed company based in the United States of
America and specializing in the distribution of tiles and associated products for the consideration of USD 10. The Lanka Walltiles PLC invested in Lankatiles
USA Inc. to ensure access to the USA market.

On 4 December 2023, Lankatiles USA Inc., a subsudiary of Lanka Walltiles PLC, acquired 51% of the voting shares of Valley View Ceramics LLC, a non-listed
company based in the United States of America and specializing in the distribution of tiles and associated products for a consideration of Rs: 16 Mn. The
Lankatiles USA Inc acquired Valley View Ceramics LLC to ensure access to the USA market. Further, on 29 February 2024, the Lanka Walltile group
obtained an additional 7.1% interest in the voting shares of Valley View Ceramics LLC at zero consideration, increasing its ownership interest to 58.1%. This
increase in ownership resulted from a change in the share structure of Valley View Ceramics LLC, following the withdrawal of one shareholder from the
company.

The provisional fair values of the identifiable assets and liabilities of Valley View Ceremics LLC as at the date of the acquisition were:

Assets acquired and Liabilities Assumed Provisional Fair value

Recognized on
Acquisition date
Assets Rs: '000
Other Current Assets 751,524
Cash & Cash equivalents 13,137
764,661
Liabilities
Current Liabilities 492,397
Non Current Liabilities 593,510
1,085,907
Total Identifiable Net Assets at Fair Value (321,246)
Non-controlling interest measured at Fair value 239,352
Goodwill arising on Acquisition 98,348
Purchase consideration transferred 16,453
Net Cash Acquired 13,137
Net cash outflow on acquisition 3,316

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 ROYAL CERAMICS LANKA PLC
NOTES TO THE FINANCIAL STATEMENTS

12. Discontinued Operations

On 28th March 2023, the group decided to dispose Horana Plantations PLC, which carried out all the group's plantation operations. The disposal was effected in order to generate cash flows for the expansion of
group's other businesses. The disposal was completed on 29 March 2023, on which date control of the Horana Plantation PLC passed to the Hayles Plantation Management Services (Pvt) Ltd (the acquirer).

On 25th July 2016, the Board of Directors took a decision to cease the operations of Ever Paint and Chemical Industries (Private) Limited ("EPCI") and to dispose of the assets thereof. EPCI is a fully owned
subsidiary of Royal Ceramics Lanka PLC and it was engaged in the business of manufacturing and marketing of paints and allied products. With EPCI being classified as discontinued operations, the paint and
allied products segment is no longer presented in the segment note.

Management has reassessed the recoverability of the remaining assets and liabilities as at the reporting date. Management is continued to take steps to dispose the remaining assets of the Company. The results of
discontinued operations for the year ended is presented below:

On 31st January 2021, the Board of Directors decided to cease the operations of Rocell Pty Ltd ("RPTY") and to dispose of the assets thereof. RPTY is a fully owned subsidiary of Royal Ceramics Lanka PLC
and it was engaged in the business of wholesale and retailing of floor tiles and wall tiles in Australia. With RPTY being classified as discontinued operations, its results were not taken to tiles and associated
items segment, However the Company settled its liabilities in March 2024 and wound up the company by 31 March 2024.

Ever Paint and Rocell Pty Ltd Total Ever Paint and Rocell Pty Ltd Horana Total
Chemical Industries Chemical Industries Plantation PLC
(Private) Limited (Private) Limited
31.03.2024 31.03.2024 31.03.2024 31.03.2023 31.03.2023 31.03.2023 31.03.2023
Rs.000's Rs.000's Rs.000's Rs.000's Rs.000's Rs.000's Rs.000's
Net Revenue - - - - - 3,794,035 3,794,035
Cost of Sales - - - - - (2,559,346) (2,559,346)
Operating Income - - - - - 1,234,689 1,234,689
Other Operating Income - 173,332 173,332 - - 3,404 3,404
Distribution Expenses - - - - (235) - (235)
Administrative Expenses (2,487) 89 (2,397) (2,462) (36) (251,583) (254,080)
Finance Expenses - 6,476 6,476 - (7,303) (334,515) (341,818)
Finance Income - - - - 8 5,097 5,105
Tax Expense - - - (487,030) (487,030)
Gain/(Loss) for the year from discontinued operations (2,487) 179,897 177,411 (2,462) (7,567) 170,062 160,033
Gain on disposal of subsidiary - - - - - 215,955 215,955
Total Gain/(Loss) for the year from discontinued operations (2,487) 179,897 177,411 (2,462) (7,567) 386,017 375,988
Basic Earnings Per Share (0.12) 72.13 (0.12) (3.03) 6.80

The major classes of assets and liabilities of discontinued operations are being classified as held for sale as at the end of the period:

Ever Paint and Total Ever Paint and Rocell Pty Ltd Total
Chemical Industries Chemical Industries
(Private) Limited (Private) Limited
31.03.2024 31.03.2024 31.03.2023 31.03.2023 31.03.2023
Assets Rs.000's Rs.000's Rs.000's Rs.000's Rs.000's
Property, Plant & Equipment 36,000 36,000 36,000 - 36,000
Trade and Other Receivables - - 0 - 0
Cash and Cash Equivalents 56 56 172 6,689 6,861
Assets held for sale 36,056 36,056 36,172 6,689 42,861
Liabilities
Trade and Other Payables (195) (195) (214) (17,678) (17,892)
Interest Bearing Loans & Borrowings - - - (182,765) (182,765)
Liabilities directly associated with the assets held for sale (195) (195) (214) (200,443) (200,657)
Net Assets directly associated with disposal group 35,861 35,861 35,958 (193,754) (157,796)

The net cash flows incurred by each company for the year ended is as follows:
Ever Paint and Rocell Pty Ltd Total Ever Paint and Rocell Pty Ltd Horana Total
Chemical Industries Chemical Industries Plantation PLC
(Private) Limited (Private) Limited
31.03.2024 31.03.2024 31.03.2024 31.03.2023 31.03.2023 31.03.2023 31.03.2023
Rs.000's Rs.000's Rs.000's Rs.000's Rs.000's Rs.000's Rs.000's
Operating (115) 67,507 67,392 (658) (11,643) 681,562 669,261
Investing - - - - 10,498 (430,106) (419,608)
Financing - - - - 4,299 (227,186) (222,887)
Net cash (outflow)/inflow (115) 67,507 67,392 (658) 3,154 24,270 26,766

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 ROYAL CERAMICS LANKA PLC
13. Segment Information

Tiles & Associated Products Sanitaryware Total Aluminium

For the Year ended 31st March 2024 2023 2024 2023 2024 2023
Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's
Revenue
Sales to External Customers 43,261,906 46,787,239 3,747,730 3,394,998 7,200,106 4,933,738
Inter-Segment Sales - - 2,043 64,689 323,105
Total Revenue 43,261,906 46,787,239 3,749,773 3,394,998 7,264,795 5,256,843

Results
Gross Profit 19,634,690 20,558,430 813,451 1,269,261 1,130,983 1,280,277
Other Operating Income 605,083 567,220 3,570 78,166 83,038 87,205
Distribution Expenses (6,888,247) (6,767,850) (854,663) (673,737) (652,186) (581,823)
Administrative Expenses (3,048,501) (2,445,497) (69,365) (65,819) (333,409) (233,404)
Other Operating Expenses (16,755) 20,709 (53,253) - - (485,804)
Finance Costs (1,587,399) (1,345,574) (431,421) (161,601) (664,010) (1,391,619)
Finance Income 488,961 1,136,720 45,361 49,525 24,043 -
Share of Associate Company's Profit - - - - - -
Net Profit before Income Tax 9,187,830 11,724,158 (546,320) 495,796 (411,541) (1,325,168)
Income Tax Expense (2,621,286) (3,745,910) 112,667 (52,526) 74,197 256,564
Net Profit After Tax from Continuing Operations 6,566,544 7,978,248 (433,653) 443,270 (337,344) (1,068,604)

As at 31st March

Segment Assets 66,874,581 57,086,461 7,283,464 7,584,279 7,499,651 7,377,511

Total assets 66,874,581 57,086,461 7,283,464 7,584,279 7,499,651 7,377,511

Segment liabilities 32,080,632 27,157,853 3,608,137 3,470,682 7,110,747 6,812,452

Total Liabilities 32,080,632 27,157,853 3,608,137 3,470,682 7,110,747 6,812,452

Other Segment Information

Total cost incurred during the year to acquire
Property, Plant & Equipment 7,172,519 4,810,769 291,251 168,204 54,642 134,792
Depreciation & Amortisation 1,724,951 1,509,908 154,637 147,370 104,769 128,523
Provisions for retirement benefit liability 249,853 192,012 13,975 12,949 9,334 12,707

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 ROYAL CERAMICS LANKA PLC
13. Segment Information (Cont..)

Packaging Finance Other Total

For the Year ended 31st March 2024 2023 2024 2023 2024 2023 2024 2023
Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's Rs. 000's
Revenue
Sales to External Customers 6,963,300 8,062,275 - - 19,015 28,010 61,192,057 63,206,259
Inter-Segment Sales 922,170 1,163,347 - - 198,459 418,805 - -
Total Revenue 7,885,470 9,225,622 - - 217,474 446,815 61,192,057 63,206,259

Results
Gross Profit 1,840,476 2,288,322 - - 67,968 94,907 23,487,566 25,530,176
Other Operating Income 108,800 334,126 - - 132,277 87,177 539,635 471,242
Distribution Expenses (297,896) (304,277) - - (14,085) (25,187) (8,253,507) (7,972,458)
Administrative Expenses (414,725) (430,115) - - (50,735) (98,439) (3,910,986) (3,267,956)
Other Operating Expenses - - - - (625) (15,392) (323,927) (222,547)
Finance Costs (217,092) (674,453) - - (36,345) (56,239) (2,524,386) (3,556,717)
Finance Income 3,567 - - - 21,172 39,118 358,330 1,152,595
Share of Associate Company's Profit - - 2,533,389 2,231,025 173,264 81,718 2,706,653 2,312,743
Net Profit before Income Tax 1,023,130 1,213,603 2,533,389 2,231,025 292,891 107,664 12,079,379 14,447,078
Income Tax Expense (310,477) (290,675) - - (51,403) (106,369) (3,023,279) (4,229,132)
Net Profit After Tax from Continuing Operations 712,653 922,928 2,533,389 2,231,025 241,488 1,295 9,056,100 10,217,946
- - - - - 0
As at 31st March

Segment Assets 5,281,495 5,279,445 3,392,663 3,627,893 101,619,088 90,565,145

Total assets 5,281,495 5,279,445 3,392,663 3,627,893 101,619,088 90,565,145

Segment liabilities 2,633,844 2,987,974 692,365 807,078 41,505,967 37,159,343

Total Liabilities 2,633,844 2,987,974 692,365 807,078 41,505,967 37,159,343

Other Segment Information

Total cost incurred during the year to acquire
Property, Plant & Equipment 161,807 194,992 45,992 208,682 7,797,950 5,949,946
Depreciation & Amortisation 101,554 97,406 28,555 21,615 2,166,785 2,070,838
Provisions for retirement benefit liability 25,085 22,538 1,684 1,676 299,338 342,918

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 ROYAL CERAMICS LANKA PLC
SHARE INFORMATION

1. Market prices of the share for the quarter ended 31st March

2024 2023
Rs. Cts. Rs. Cts.

Highest 33.30 35.10

Lowest 25.60 26.00
Closing 31.10 27.60

2. Twenty Major Share Holders

Number of Shares % of issued

as at 31.03.2024 capital

VALLIBEL ONE PLC 620,026,000 55.96

EMPLOYEE'S PROVIDENT FUND 152,779,980 13.79
MR. K.D.H. PERERA 17,676,020 1.60
SRI LANKA INSURANCE CORPORATION LTD-LIFE FUND 13,831,320 1.25
EMPLOYEES TRUST FUND BOARD 7,814,986 0.71
SEYLAN BANK PLC/MOHAMED NAYAZ DEEN 7,414,855 0.67
LOTUS TECHNOLOGIES (PRIVATE) LIMITED 3,959,259 0.36
NORTHERN TRUST COMPANY S/A LSV FRONTIER MARKETS EQUITY FUNDLP 3,600,600 0.32
MRS. D.G.F AMARATUNGA 3,530,000 0.32
SEYLAN BANK PLC/PHANTOM INVESTMENTS (PVT) LTD 3,240,087 0.29
MACKENZIE CAPITAL LTD 3,000,000 0.27
RENUKA HOTELS PLC 2,900,000 0.26
AMANA BANK PLC/MR.MOHAMED NAYAZ DEEN 2,781,997 0.25
J.B. COCOSHELL (PVT) LTD 2,747,482 0.25
CRESCENT LAUNDERERS AND DRY CLEANERS PVT LIMITED 2,730,000 0.25
BANK OF CEYLON-NO2 A/C (BOC PTF) 2,403,392 0.22
RENUKA CONSULTANTS & SERVICES LIMITED. 2,310,000 0.21
PERERA AND SONS BAKERS PVT LIMITED 2,100,000 0.19
HATTON NATIONAL BANK PLC/JN LANKA HOLDINGS COMPANY (PVT) LTD 2,086,396 0.19
SRI LANKA INSURANCE CORPORATION LTD-GENERAL FUND 2,059,537 0.19
MR. K.D.D. PERERA 2,007,720 0.18
DFCC BANK PLC A/C NO .02 1,910,000 0.17
MR. T.G. THORADENIYA 1,856,800 0.17
RENUKA CITY HOTELS PLC 1,800,000 0.16
HATTON NATIONAL BANK PLC/RUWAN PRASSANA SUGATHADASA 1,720,651 0.16
RUBBER INVESTMENT TRUST LTD A/C NO 01 1,718,480 0.16
MR. V. LINTOTAWELA 1,699,214 0.15
MR. M.F. HASHIM 1,672,700 0.15
MR. A.S. ASHRAF 1,649,205 0.15
MR. D.N.P. RATHNAYAKE 1,550,865 0.14

3. The percentage of shares held by the public as at 31st March 2024 - 43.80% comprising of 22,028 shareholders

4. The float adjusted market capitalization as at 31st March 2024 - Rs. 15,093,193,154.20

5.The float adjusted market capitalization of the Company falls under Option 01 of Rule 7.13.1(i) (a) of the Listing Rules of the Colombo Stock Exchange and the Company
has complied with the minimum public holding requirement applicable under said option.

6. Directors' shareholding
No of shares No of shares
As at 31st March 2024 As at 31st March 2023
Mr. S H Amarasekera - -
Mr. A M Weerasinghe 331,763 331,763
Mr. M Y A Perera 2,200 2,200
Mr. T G Thoradeniya 1,856,800 1,856,800
Mr. G A R D Prasanna 50,000 50,000
Mr. R N Asirwatham - -
Ms. N R Thambiayah - -
Mr. L N de S Wijeyeratne - -
Mr. N J Weerakoon - -
Mr. S M Liyanage - -
Mr J R Gunaratne - -
Mr.S R Jayaweera - -
Ms. K A D B Perera - -

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 ROYAL CERAMICS LANKA PLC

CORPORATE INFORMATION

NAME OF THE COMPANY ROYAL CERAMICS LANKA PLC

COMPANY REGISTRATION NO PQ 125

LEGAL FORM A Public Quoted Company with limited liability incorporated under the provisions
of Companies Act No.7 of 2007.

DATE OF INCORPORATION 29th August 1990

NATURE OF BUSINESS Manufacture and marketing of floor tiles, wall tiles and holding of investments

HEAD OFFICE AND REGISTERED OFFICE 20, R A De Mel Mawatha, Colombo 3

Telephone 114799400
Fax 114720077
E- Mail ho.gen@rcl.lk
Website www.rocell.com

BOARD OF DIRECTORS Mr. S H Amarasekera - Chairman

Mr. A M Weerasinghe - Deputy Chairman
Mr. M Y A Perera - Managing Director
Mr. T G Thoradeniya - Director Marketing & Business Development
Mr. R N Asirwatham
Mr. G A R D Prasanna
Ms. N R Thambiayah
Mr. L N D S Wijeyeratne
Mr. N J Weerakoon
Mr. S M Liyanage
Mr. S R Jayaweera
Mr. J R Gunaratne
Ms. K A D B Perera

SUBSIDIARY COMPANIES Rocell Bathware Ltd

Royal Ceramics Distributors (Pvt) Ltd
Ever Paint and Chemical Industries (Pvt) Ltd
Biscuits and Chocolate Company Limited (Previously known as "Rocell Ceramics Limited")
Nilano Garments (Pvt) Ltd
CP Holding (Pvt) Ltd
Lanka Ceramic PLC
Lanka Walltiles PLC & its Subsidiaries

ASSOCIATED COMPANIES Delmege Limited

LB Finance PLC

SECRETARIES PW Corporate Secretarial (Pvt) Ltd

No. 3/17 ,Kynsey Road,
Colombo - 08
Telephone (94-11) 4640360-3
Fax (94-11) 4740588

COMPANY REGISTRARS Central Dipository System (Pvt) Ltd

Ground Floor, M & M Center,
No. 341/5, Kotte Road,
Rajagiriya
Telephone (94-11) 2356491
Fax (94-11) 2440396

AUDITORS Ernst & Young, Chartered Accountants

Rotunda Towers, No 109, Galle Road, Colombo 03
P.O. Box 101,
Colombo

BANKERS Commercial Bank of Ceylon PLC

Hatton National Bank PLC
Seylan Bank PLC
Bank of Ceylon
Standard Chartered Bank Ltd
Sampath Bank PLC
PABC Bank PLC
DFCC Bank PLC
HSBC Ltd
MCB Bank Ltd

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