MIRA INFORM REPORT

Report Date :

26.08.2013

IDENTIFICATION DETAILS

Name :	HAPUGASTENNE PLANTATIONS LIMITED
Registered Office :	Finlay House No. 95 A, Nambapana, Ingiriya P.O.Box 2 Colombo, 2
Country :	Sri Lanka
Financials (as on) :	31.12.2011
Date of Incorporation :	11.06.1992
Legal Form :	Public Subsidiary
Line of Business :	Subject engaged in the cultivation, manufacture and sale of tea, rubber and other agricultural produce.
No. of Employees :	9,279

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Sri Lanka	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SRI LANKA - ECONOMIC OVERVIEW

Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam (LTTE). The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka''s economic vulnerabilities and nearly caused a balance of payments crisis. Growth slowed to 3.5% in 2009. Economic activity rebounded with the end of the war and an IMF agreement, resulting in two straight years of 8% growth in 2010-11. Growth moderated to about 6% in 2012. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern. Strong remittances from Sri Lankan workers abroad have helped to offset the trade deficit.

Source : CIA

Company name and address Top of Form

Bottom of Form

Top of Form

Hapugastenne Plantations Limited

Finlay House
No. 95 A, Nambapana, Ingiriya
P.O.Box 2
Colombo, 2
Sri Lanka
Tel:	94-34-297500
Fax:	94-34-297555
www.finlays.net

Employees:

9,279

Company Type:

Public Subsidiary

Corporate Family:

2 Companies

Ultimate Parent:

James Finlay Plantations Holdings (Lanka) Limited

Traded:

Colombo (Sri Lanka) Stock Exchange:

HAPU.N0000

Incorporation Date:

11-Jun-1992

Auditor:

KPMG

Financials in:	USD (mil)
Fiscal Year End:	31-Dec-2012
Reporting Currency:	Sri Lanka Rupee
Annual Sales:	24.7 ^1
Net Income:	(1.7)
Total Assets:	26.0 ^2
Market Value:	9.4
	(07-Aug-2013)

Business Description

Hapugastenne Plantations PLC (HPPLC) is a Sri Lanka-based company engaged in the cultivation, manufacture and sale of tea, rubber and other agricultural produce. The Company’s plantations are situated in the planting districts of Ratnapura, Badulla and Monaragala. During the year ended December 31, 2011, the Company produced 8.044 million kilograms of tea and 0.889 million kilograms of rubber. As of December 31, 2011, the Company’s parent undertaking was James Finlay Plantation Holdings (Lanka) Limited, and its ultimate parent undertaking and controlling party was John Swire & Sons Limited. As of the same date, HPPLC had two subsidiaries, namely Finwood Lanka (Pvt) Limited, which is engaged in the processing, value adding and sale of timber, and Newburgh Green Teas (Pvt) Limited, which was active in the manufacture and sale of green tea. For the nine months ended 30 September 2012, Hapugastenne Plantations Limited revenues decreased 1% to LKR2.34B. Net income totaled LKR89.1M vs. loss of LKR42M. Revenues reflect Rubber segment decrease of 24% to LKR80.1M. Net Income reflects Other Income increase of 27% to LKR130.9M (income), Finance Cost decrease of 5% to LKR56.5M (expense). Basic Earnings per Share excluding Extraordinary Items increased from -LKR0.91 to LKR1.92.

Industry

Industry	Food Manufacturing
ANZSIC 2006:	1199 - Other Food Product Manufacturing Not Elsewhere Classified
ISIC Rev 4:	1079 - Manufacture of other food products n.e.c.
NACE Rev 2:	1089 - Manufacture of other food products n.e.c.
NAICS 2012:	31192 - Coffee and Tea Manufacturing
UK SIC 2007:	1089 - Manufacture of other food products n.e.c.
US SIC 1987:	2099 - Food Preparations, Not Elsewhere Classified

Key Executives

Name	Title
Dhayan H. Madawala	Chief Executive Officer
Ratna A. D. R. Ramanayake	Chief Financial Officer, Financial Controller
Rasika Perera	Head - Marketing
Ranjith Gunathilake	General Manager - Administration
Nandana Amandakoon	Manager - Systems & Control

Financial Summary

As of 30-Sep-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	1.26	2.04
Quick Ratio (MRQ)	0.49	0.90
Debt to Equity (MRQ)	0.35	0.81
Sales 5 Year Growth	10.93	9.03
Net Profit Margin (TTM) %	-2.90	2.78
Return on Assets (TTM) %	-2.75	3.12
Return on Equity (TTM) %	-6.76	8.13

Stock Snapshot

Traded: Colombo (Sri Lanka) Stock Exchange: HAPU.N0000

As of 7-Aug-2013

   Financials in: LKR

Recent Price	26.80	EPS	-4.88
52 Week High	45.00	Price/Sales	0.39
52 Week Low	26.70	Price/Book	1.06
Avg. Volume (mil)	0.0002	Beta	1.20
Market Value (mil)	1,241.26

	Price % Change	Rel S&P 500%
4 Week	-12.42%	-13.70%
13 Week	-19.52%	-18.39%
52 Week	-31.28%	-45.38%
Year to Date	-30.57%	-36.31%

1 - Profit & Loss Item Exchange Rate: USD 1 = LKR 127.5522
2 - Balance Sheet Item Exchange Rate: USD 1 = LKR 126.93

Corporate Overview

Location
Finlay House
No. 95 A, Nambapana, Ingiriya
P.O.Box 2
Colombo, 2
Sri Lanka

Tel:	94-34-297500
Fax:	94-34-297555

www.finlays.net

Quote Symbol - Exchange
HAPU.N0000 - Colombo (Sri Lanka) Stock Exchange
Sales LKR(mil):	3,144.4
Assets LKR(mil):	3,304.0
Employees:	9,279
Fiscal Year End:	31-Dec-2012

Industry:

Food Processing

Incorporation Date:	11-Jun-1992
Company Type:	Public Subsidiary
Quoted Status:	Quoted

Chief Executive Officer:

Dhayan H. Madawala

Industry Codes

ANZSIC 2006 Codes:
1199	-	Other Food Product Manufacturing Not Elsewhere Classified
0159	-	Other Crop Growing Not Elsewhere Classified
0302	-	Logging

ISIC Rev 4 Codes:
1079	-	Manufacture of other food products n.e.c.
0210	-	Silviculture and other forestry activities
0129	-	Growing of other perennial crops

NACE Rev 2 Codes:
1089	-	Manufacture of other food products n.e.c.
0129	-	Growing of other perennial crops
0210	-	Silviculture and other forestry activities

NAICS 2012 Codes:
31192	-	Coffee and Tea Manufacturing
111998	-	All Other Miscellaneous Crop Farming
113110	-	Timber Tract Operations

US SIC 1987:
2099	-	Food Preparations, Not Elsewhere Classified
0191	-	General Farms, Primarily Crop
0811	-	Timber Tracts

UK SIC 2007:
1089	-	Manufacture of other food products n.e.c.
0129	-	Growing of other perennial crops
0210	-	Silviculture and other forestry activities

Business Description

Hapugastenne Plantations PLC (HPPLC) is a Sri Lanka-based company engaged in the cultivation, manufacture and sale of tea, rubber and other agricultural produce. The Company’s plantations are situated in the planting districts of Ratnapura, Badulla and Monaragala. During the year ended December 31, 2011, the Company produced 8.044 million kilograms of tea and 0.889 million kilograms of rubber. As of December 31, 2011, the Company’s parent undertaking was James Finlay Plantation Holdings (Lanka) Limited, and its ultimate parent undertaking and controlling party was John Swire & Sons Limited. As of the same date, HPPLC had two subsidiaries, namely Finwood Lanka (Pvt) Limited, which is engaged in the processing, value adding and sale of timber, and Newburgh Green Teas (Pvt) Limited, which was active in the manufacture and sale of green tea. For the nine months ended 30 September 2012, Hapugastenne Plantations Limited revenues decreased 1% to LKR2.34B. Net income totaled LKR89.1M vs. loss of LKR42M. Revenues reflect Rubber segment decrease of 24% to LKR80.1M. Net Income reflects Other Income increase of 27% to LKR130.9M (income), Finance Cost decrease of 5% to LKR56.5M (expense). Basic Earnings per Share excluding Extraordinary Items increased from -LKR0.91 to LKR1.92.

More Business Descriptions

Cultivation and processing of tea and rubber

Financial Data

Financials in:	LKR(mil)
Revenue:	3,144.4
Net Income:	-219.0
Assets:	3,304.0
Long Term Debt:	305.4
Total Liabilities:	2,135.4
Working Capital:	0.1
Date of Financial Data:	31-Dec-2012

1 Year Growth

-10.8%

NA

-13.6%

Market Data

Quote Symbol:	HAPU.N0000
Exchange:	Colombo (Sri Lanka) Stock Exchange
Currency:	LKR
Stock Price:	26.8
Stock Price Date:	08-07-2013
52 Week Price Change %:	-31.3
Market Value (mil):	1,241,263.0
SEDOL:	6404338
ISIN:	LK0285N00003

Subsidiaries

Company	Percentage Owned	Country
Newburgh Green Teas (Pvt) Limited	100%	SRI LANKA
Finwood Lanka (Pvt) Limited	100%	SRI LANKA

Shareholders

Major Shareholders

James Finlay Plantations Holdings (Lanka) Limited (58.87%); James Finlay Limited (21.06%); Jacey Trust Services (Private) Limited (11.9%)

Key Corporate Relationships

Auditor:	KPMG
Bank:	Commercial Bank of Ceylon, Standard Chartered Bank, Bank of Ceylon, Peoples Bank
Auditor:	KPMG, KPMG

Corporate Structure News

Hapugastenne Plantations Limited
Total Corporate Family Members: 2

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
James Finlay Plantations Holdings (Lanka) Limited	Parent
Hapugastenne Plantations Limited	Subsidiary	Colombo	Sri Lanka	Food Manufacturing	24.7	9,279

Executives Report

Board of Directors

Name	Title	Function
Naresh Kumar Hubert Ratwatte	Chairman, Managing Director, Executive Director	Chairman
Biography: Mr. N.K.H. Ratwatte is Executive Chairman and Managing Director of Hapugastenne Plantations PLC since April 2006. Executive Director since November 2003. Executive Director of Finlays Colombo PLC since 1997. Fellow of the Institute of Plantation Management (FIPM). Director of the Plantation Human Development Trust and a Trustee of the Plantation Fund. Director of Anglo Ceylon Estates (Pvt) Ltd and Stallion Plantations (Pvt) Ltd.
N. V. Davies	Non-Executive Director	Director/Board Member
Biography: Mr. N. V. Davies is Non-Executive Director of Hapugastenne Plantations PLC. Mr. N.Davies is the Director overseeing the Tea Estates of James Finlay Limited, London. An engineer by traning. In 2003 he became Director East Africa with overall responsibility for the Group’s interests both Kenya and Uganda. Mr. Davies had joined the Board of James Finlay Limited, London as Director Plantations at the beginning of 2008. In his current role he is responsible to the Main Board for all the Group’s Tea Estates in Sri Lanka, Kenya and Uganda.
P R Henson	Non-Executive Director	Director/Board Member
Chandima Lalith Kumar Perera Jayasuriya	Non-Executive Director	Director/Board Member
Biography: Mr. Chandima Lalith Kumar Perera Jayasuriya is Non-Executive Director of Hapugastenne Plantations PLC since November 2003. He is Executive Chairman of Finlays Colombo PLC since April 1, 2006. Fellow of the Chartered Institute of Management Accountants of United Kingdom (U.K.) (FCMA), Fellow of the Chartered Association of Certified Accountants, U.K. (FCCA). Chairman of the Employers’ Federation of Ceylon, Committee Member of the Ceylon Chamber of Commerce and Chairman of the Mercantile Service provident Society.
Ron J. Mathison	Non-Executive Director	Director/Board Member
Biography: Mr. Ron J. Mathison is Non-Executive Director of Hapugastenne Plantations PLC. He is Managing Director of James Finlay Ltd., London. Previously the Director and General Manager Cargo for Cathay Pacific Airways Ltd., which he joined in 1984. Age: 48
J. Molligoda	Independent Non-Executive Director	Director/Board Member
Biography: Mr. J. Molligoda is Independent Non-Executive Director of Hapugastenne Plantations PLC. He is Director, Strategic Planning / Projects of Bogawantalawa Tea Estates PLC. Counts over twenty seven years of experience in the fields of human resource development, financial management and strategic planning/projects in the plantation sector. Fellow of the Institute of Chartered Accountants of Sri Lanka, Master of Business Administration(PIM), Fellow of the Society of Certified Management Accountants of Sri Lanka. Life member of the Organisation of Professional Association of Sri Lanka, Founder Member of the Institute of Directors of Sri Lanka, Founder member of the Association of HR Professionals.
E. R. Croos Moraes	Non-Executive Director	Director/Board Member
Biography: Mr. E.R.Croos Moraes is Non-Executive Director of Hapugastenne Plantations PLC since November 2003. He is Executive Director of Finlays Colombo PLC since October 1991. An Associate Member of the Chartered Institute of Marketing UK (ACIM). A Chartered Marketer.
Sanjoy Ray	Executive Director	Director/Board Member
Biography: Mr. Sanjoy Ray is Executive Director of Hapugastenne Plantations PLC since April 1, 2006. He is Executive Director of Finlays Colombo PLC since February 2004. Graduate in Mathematics and an Associate Member of the Institute of Chartered Accountants of India. Was attached to the Reckitt Benckiser Group for about 20 years holding positions of various capacities before joining the Finlays Group. Age: 55
Julian Michael Rutherford	Non-Executive Director	Director/Board Member
Biography: Mr. Julian Michael Rutherford has been Non-Executive Director at Hapugastenne Plantations PLC since February 1, 2013. He joined the Company from Westmill Foods, part of Associated British Foods PLC and during his 15 years with that company he has held a variety of senior Finance and related positions, culminating in his post as Finance, IS and Procurement Director. Education: University of Southampton, BS (Economics)
Jayanta Mootatamby Swaminathan	Independent Non-Executive Director	Director/Board Member
Biography: J.M. Swaminathan is Independent Non-Executive Director of Hapugastenne Plantations Limited since December 2007. He is Member of the Council of Legal Education, Member of Legal Cluster of the National Commission of Economic Development, Member Company Law Advisory Commission, Member Intellectual Property Law Commission, Member Law Faulty Board University of Colombo, Visiting Lecturer University of Colombo and Sri Lanka Law College. Education: Colombo University, M (Philosophy) Colombo University, LLM Ceylon University, LLB
Samuel Compton Swire	Non-Executive Director	Director/Board Member
Biography: Mr. Samuel Compton Swire has been Non-Executive Director at Hapugastenne Plantations PLC since November 1, 2012. He has been Chief Operating Officer and Executive Director at Finlays Colombo PLC since October 8, 2012. He was educated at Eton College, Windsor, UK, and holds a BA (Hons) degree in Modern History from the University of Oxford, UK. He has been employed in the Swire Group since 2003. His last appointment before the Company was as the General Manager China, Cathay Pacific Airways and Dragonair, Beijing, China. Education: University of Oxford, BA (Modern History) Eton College
M. Vamadevan	Independent Non-Executive Director	Director/Board Member
Biography: Mr. M. Vamadevan is Independent Non-Executive Director of Hapugastenne Plantations PLC since December 2007. Presently the Advisor to the Ministry of Resettlement and Disaster Relief Services. Holds a M. Phil in Applied Economics and M. A. in Development Economics. A member of the Board of Rehabilitation of Persons, Properties and Industries Authority. Previously worked for 35 years in the Ministries of Planning, and Finance and Planning in various capacities.
Anthony Nishantha Wickramasinghe	Non-Executive Director	Director/Board Member

Executives

Name	Title	Function
Dhayan H. Madawala	Chief Executive Officer	Chief Executive Officer
Sunil Basnayake	General Manager - Engineering	Division Head Executive
Maithree Gankanda	Deputy General Manager	Division Head Executive
Ranjith Gunathilake	General Manager - Administration	Division Head Executive
Kosala Hettiaratchi	Group Manager - Passara	Division Head Executive
Wije Pathirana	General Manager - Ratnapura/Rakwana	Division Head Executive
Drupatha Rodrigo	Deputy General Manager - Hali-Ela	Division Head Executive
Naresh Kumar Hubert Ratwatte	Chairman, Managing Director, Executive Director	Managing Director
Biography: Mr. N.K.H. Ratwatte is Executive Chairman and Managing Director of Hapugastenne Plantations PLC since April 2006. Executive Director since November 2003. Executive Director of Finlays Colombo PLC since 1997. Fellow of the Institute of Plantation Management (FIPM). Director of the Plantation Human Development Trust and a Trustee of the Plantation Fund. Director of Anglo Ceylon Estates (Pvt) Ltd and Stallion Plantations (Pvt) Ltd.
Ratna A. D. R. Ramanayake	Chief Financial Officer, Financial Controller	Finance Executive
Bindu Ratnayake	Deputy Financial Controller	Finance Executive
Ranil Kapugeekiyana	Head of Human Resources	Human Resources Executive
Rasika Perera	Head - Marketing	Marketing Executive
Nandana Amandakoon	Manager - Systems & Control	Information Executive
Kanishka Tennakoon	Manager - Business Development	Business Development Executive
Manori Gunaratne	Sustainability Manager	Other
Priya Gunawardena	Manager - Forestry	Other
Ranjan Kulatunga	Co-ordinating Manager	Other

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Restated Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	LKR	LKR	LKR	LKR	LKR
Exchange Rate (Period Average)	110.556216	113.05418	114.967315	108.350068	110.592705
Auditor	KPMG	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	28.4	31.2	25.2	27.5	25.0
Revenue	28.4	31.2	25.2	27.5	25.0
Total Revenue	28.4	31.2	25.2	27.5	25.0
Cost of Revenue	28.5	26.4	22.7	24.4	19.8
Cost of Revenue, Total	28.5	26.4	22.7	24.4	19.8
Gross Profit	-0.1	4.8	2.5	3.1	5.2
Selling/General/Administrative Expense	1.7	1.7	1.5	1.4	1.4
Total Selling/General/Administrative Expenses	1.7	1.7	1.5	1.4	1.4
Interest Income - Operating	-0.3	-0.6	-0.6	-0.6	-
Interest/Investment Income - Operating	-0.3	-0.6	-0.6	-0.6	-
Interest Expense (Income) - Net Operating Total	-0.3	-0.6	-0.6	-0.6	-
Loss (Gain) on Sale of Assets - Operating	-0.1	-0.1	0.0	0.0	-
Unusual Expense (Income)	-0.1	-0.1	0.0	0.0	-
Other, Net	-0.1	-0.3	-0.2	-0.1	-1.2
Other Operating Expenses, Total	-0.1	-0.3	-0.2	-0.1	-1.2
Total Operating Expense	29.8	27.2	23.4	25.0	19.9
Operating Income	-1.3	4.0	1.8	2.5	5.1
Interest Expense - Non-Operating	-0.8	-1.0	-0.7	-0.8	-0.7
Interest Expense, Net Non-Operating	-0.8	-1.0	-0.7	-0.8	-0.7
Interest Income (Expense) - Net Non-Operating Total	-0.8	-1.0	-0.7	-0.8	-0.7
Income Before Tax	-2.1	3.1	1.0	1.7	4.4
Total Income Tax	-0.1	0.5	0.2	0.4	0.3
Income After Tax	-2.0	2.5	0.8	1.3	4.1
Minority Interest	0.0	0.0	0.0	0.0	-
Net Income Before Extraord Items	-2.0	2.5	0.9	1.3	4.1
Net Income	-2.0	2.5	0.9	1.3	4.1
Income Available to Common Excl Extraord Items	-2.0	2.5	0.9	1.3	4.1
Income Available to Common Incl Extraord Items	-2.0	2.5	0.9	1.3	4.1
Basic/Primary Weighted Average Shares	46.3	46.3	46.3	46.3	46.3
Basic EPS Excl Extraord Items	-0.04	0.05	0.02	0.03	0.09
Basic/Primary EPS Incl Extraord Items	-0.04	0.05	0.02	0.03	0.09
Dilution Adjustment	0.0	-	0.0	-	-
Diluted Net Income	-2.0	2.5	0.9	1.3	4.1
Diluted Weighted Average Shares	46.3	46.3	46.3	46.3	46.3
Diluted EPS Excl Extraord Items	-0.04	0.05	0.02	0.03	0.09
Diluted EPS Incl Extraord Items	-0.04	0.05	0.02	0.03	0.09
Dividends per Share - Common Stock Primary Issue	0.00	0.02	0.01	0.02	0.02
Gross Dividends - Common Stock	0.0	0.8	0.4	0.9	0.8
Interest Expense, Supplemental	0.8	1.0	0.7	0.8	0.7
Depreciation, Supplemental	0.8	0.6	0.6	0.7	0.5
Total Special Items	-0.1	-0.1	0.0	0.0	-
Normalized Income Before Tax	-2.2	3.0	1.0	1.7	4.4
Effect of Special Items on Income Taxes	0.0	0.0	0.0	0.0	-
Inc Tax Ex Impact of Sp Items	-0.1	0.5	0.2	0.4	0.3
Normalized Income After Tax	-2.1	2.5	0.8	1.3	4.1
Normalized Inc. Avail to Com.	-2.0	2.5	0.9	1.3	4.1
Basic Normalized EPS	-0.04	0.05	0.02	0.03	0.09
Diluted Normalized EPS	-0.04	0.05	0.02	0.03	0.09
Amort of Intangibles, Supplemental	0.3	0.3	0.3	-	0.3
Rental Expenses	0.2	-	-	-	-
Normalized EBIT	-1.7	3.3	1.1	1.8	5.1
Normalized EBITDA	-0.6	4.2	2.1	2.5	5.9
Current Tax - Domestic	0.1	0.3	0.2	0.2	0.3
Current Tax - Other	-0.1	0.0	0.0	0.0	0.0
Current Tax - Total	0.0	0.3	0.2	0.2	0.3
Deferred Tax - Domestic	-0.1	0.2	0.0	0.2	-
Deferred Tax - Other	0.0	0.0	-	-	-
Deferred Tax - Total	-0.1	0.2	0.0	0.2	-
Income Tax - Total	-0.1	0.5	0.2	0.4	0.3
Interest Cost - Domestic	0.5	0.6	-	-	-
Service Cost - Domestic	0.4	0.3	-	-	-
Actuarial Gains and Losses - Domestic	1.7	0.0	-	-	-
Other Pension, Net - Domestic	-	-	1.4	1.0	0.8
Domestic Pension Plan Expense	2.7	0.9	1.4	1.0	0.8
Defined Contribution Expense - Domestic	1.0	1.1	0.8	0.9	0.7
Total Pension Expense	3.7	2.0	2.2	1.9	1.5
Total Plan Interest Cost	0.5	0.6	-	-	-
Total Plan Service Cost	0.4	0.3	-	-	-
Total Plan Other Expense	-	-	1.4	1.0	0.8

Annual Balance Sheet

Financials in: USD (mil)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Reclassified Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	LKR	LKR	LKR	LKR	LKR
Exchange Rate	113.9	110.945	114.4	113	108.65
Auditor	KPMG	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash	0.1	0.4	0.1	0.2	0.1
Short Term Investments	0.2	5.4	3.9	2.4	2.9
Cash and Short Term Investments	0.3	5.9	4.0	2.6	3.0
Accounts Receivable - Trade, Gross	0.2	0.2	0.1	0.2	0.3
Provision for Doubtful Accounts	-0.1	0.0	0.0	0.0	0.0
Trade Accounts Receivable - Net	1.2	0.6	1.1	1.2	1.4
Other Receivables	0.3	0.4	0.5	0.4	0.3
Total Receivables, Net	1.5	1.0	1.6	1.6	1.7
Inventories - Finished Goods	3.1	3.8	3.6	3.2	3.8
Inventories - Other	0.5	0.6	0.4	0.4	0.3
Total Inventory	3.6	4.3	4.0	3.6	4.1
Total Current Assets	5.3	11.2	9.6	7.8	8.8
Land/Improvements	8.8	8.9	8.3	8.3	0.6
Machinery/Equipment	6.9	6.6	5.7	4.9	4.7
Construction in Progress	0.4	0.4	0.2	0.3	0.1
Leases	11.1	10.3	12.4	11.8	1.7
Natural Resources	-	-	-	-	5.5
Property/Plant/Equipment - Gross	27.2	26.2	26.6	25.2	12.7
Accumulated Depreciation	-6.5	-6.0	-8.5	-7.9	-4.0
Property/Plant/Equipment - Net	20.7	20.2	18.1	17.4	17.0
LT Investment - Affiliate Companies	0.0	-	0.0	0.2	-
LT Investments - Other	-	-	0.0	1.4	-
Long Term Investments	0.0	-	0.0	1.6	-
Note Receivable - Long Term	0.2	0.3	0.3	0.3	0.3
Deferred Income Tax - Long Term Asset	0.0	0.0	-	-	-
Other Long Term Assets	2.7	2.8	2.4	2.2	1.9
Other Long Term Assets, Total	2.7	2.8	2.4	2.2	1.9
Total Assets	29.0	34.5	30.4	29.2	28.0
Accounts Payable	1.0	1.3	1.2	1.0	0.9
Accrued Expenses	1.1	1.0	0.9	0.9	0.4
Notes Payable/Short Term Debt	1.2	0.2	0.2	1.6	0.1
Current Portion - Long Term Debt/Capital Leases	0.4	4.5	0.4	0.4	0.4
Dividends Payable	0.1	0.0	-	-	-
Income Taxes Payable	0.1	0.4	0.3	0.2	0.3
Other Payables	1.1	1.0	1.0	0.6	1.8
Other Current liabilities, Total	1.3	1.4	1.3	0.9	2.1
Total Current Liabilities	5.0	8.4	4.0	4.7	3.9
Long Term Debt	0.5	0.9	4.9	5.0	4.5
Capital Lease Obligations	2.1	2.2	2.2	2.3	2.4
Total Long Term Debt	2.7	3.2	7.1	7.2	6.9
Total Debt	4.3	7.9	7.7	9.3	7.4
Deferred Income Tax - LT Liability	0.3	0.4	0.2	0.2	-
Deferred Income Tax	0.3	0.4	0.2	0.2	-
Minority Interest	0.2	0.3	0.3	0.0	-
Pension Benefits - Underfunded	6.8	4.9	4.3	3.4	2.8
Other Long Term Liabilities	3.6	3.9	3.6	3.5	3.5
Other Liabilities, Total	10.4	8.8	8.0	6.9	6.3
Total Liabilities	18.7	21.1	19.5	19.1	17.1
Common Stock	4.8	5.0	4.8	4.9	4.3
Common Stock	4.8	5.0	4.8	4.9	4.3
Additional Paid-In Capital	-	-	-	-	0.8
Retained Earnings (Accumulated Deficit)	2.6	5.4	3.0	2.1	2.5
Unrealized Gain (Loss)	2.9	3.0	3.0	3.1	3.4
Total Equity	10.3	13.3	10.8	10.1	10.9
Total Liabilities & Shareholders’ Equity	29.0	34.5	30.4	29.2	28.0
Shares Outstanding - Common Stock Primary Issue	46.3	46.3	46.3	46.3	46.3
Total Common Shares Outstanding	46.3	46.3	46.3	46.3	46.3
Employees	9,279	9,397	9,467	10,023	10,286
Number of Common Shareholders	21,637	21,978	22,297	22,362	22,652
Deferred Revenue - Long Term	1.8	1.9	1.7	1.6	1.5
Total Long Term Debt, Supplemental	0.9	5.4	5.2	5.3	4.7
Long Term Debt Maturing within 1 Year	0.4	4.5	0.4	0.3	0.3
Long Term Debt Maturing in Year 2	0.1	0.2	1.2	1.2	0.3
Long Term Debt Maturing in Year 3	0.1	0.2	1.2	1.2	0.3
Long Term Debt Maturing in Year 4	0.1	0.2	1.2	1.2	0.3
Long Term Debt Maturing in Year 5	0.1	0.2	1.2	1.2	0.3
Long Term Debt Maturing in 2-3 Years	0.2	0.4	2.4	2.4	0.6
Long Term Debt Maturing in 4-5 Years	0.2	0.4	2.4	2.4	0.6
Long Term Debt Matur. in Year 6 & Beyond	0.0	0.0	0.0	0.2	3.2
Total Capital Leases, Supplemental	0.0	0.0	0.0	0.1	0.1
Capital Lease Payments Due in Year 1	0.0	0.0	0.0	0.1	0.1
Capital Lease Payments Due in Year 2	0.0	0.0	0.0	0.0	0.0
Capital Lease Payments Due in Year 3	0.0	0.0	0.0	0.0	0.0
Capital Lease Payments Due in Year 4	0.0	0.0	0.0	0.0	0.0
Capital Lease Payments Due in Year 5	0.0	0.0	0.0	0.0	0.0
Capital Lease Payments Due in 2-3 Years	0.0	0.0	0.0	0.0	0.0
Capital Lease Payments Due in 4-5 Years	0.0	0.0	0.0	0.0	0.0
Cap. Lease Pymts. Due in Year 6 & Beyond	0.0	0.0	0.0	0.0	0.0
Accrued Liabilities - Domestic	-6.8	-4.9	-4.3	-3.4	-2.8
Net Assets Recognized on Balance Sheet	-6.8	-4.9	-4.3	-3.4	-2.8

Annual Cash Flows

Financials in: USD (mil)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Updated Normal 31-Dec-2007
Filed Currency	LKR	LKR	LKR	LKR	LKR
Exchange Rate (Period Average)	110.556216	113.05418	114.967315	108.350068	110.592705
Auditor	KPMG	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income/Starting Line	-2.1	3.1	1.0	1.7	4.4
Depreciation	1.1	0.9	0.9	0.9	0.8
Depreciation/Depletion	1.1	0.9	0.9	0.9	0.8
Unusual Items	-0.1	-0.1	0.0	0.0	-0.9
Other Non-Cash Items	3.1	1.1	1.4	1.1	1.3
Non-Cash Items	3.0	1.1	1.4	1.1	0.4
Accounts Receivable	-0.5	0.5	0.0	0.0	-0.5
Inventories	0.6	0.0	-0.5	0.5	-1.9
Accounts Payable	-0.1	0.2	0.6	-0.2	0.6
Other Liabilities	0.0	0.0	-	-	-
Other Operating Cash Flow	-1.0	-0.9	-0.8	-0.9	-1.0
Changes in Working Capital	-1.0	-0.3	-0.6	-0.5	-2.8
Cash from Operating Activities	1.0	4.8	2.7	3.2	2.8
Purchase of Fixed Assets	-0.9	-1.6	-1.1	-1.4	-0.5
Capital Expenditures	-0.9	-1.6	-1.1	-1.4	-0.5
Sale of Fixed Assets	0.2	0.1	0.0	0.1	0.9
Investment, Net	5.2	-1.4	-0.6	-1.1	-
Purchase of Investments	-	0.0	0.4	-0.2	-
Other Investing Cash Flow	-1.2	-0.6	-0.4	-0.5	-0.5
Other Investing Cash Flow Items, Total	4.3	-1.9	-0.5	-1.6	0.4
Cash from Investing Activities	3.5	-3.5	-1.5	-3.0	-0.1
Other Financing Cash Flow	0.0	0.3	0.2	0.2	0.2
Financing Cash Flow Items	0.0	0.3	0.2	0.2	0.2
Cash Dividends Paid - Common	-0.8	-0.4	0.0	-1.6	-
Total Cash Dividends Paid	-0.8	-0.4	0.0	-1.6	-
Long Term Debt Reduction	-5.1	-0.8	-0.6	-0.2	-0.6
Long Term Debt, Net	-5.1	-0.8	-0.6	-0.2	-0.6
Issuance (Retirement) of Debt, Net	-5.1	-0.8	-0.6	-0.2	-0.6
Cash from Financing Activities	-5.9	-0.9	-0.3	-1.6	-0.4
Net Change in Cash	-1.5	0.4	0.8	-1.5	2.3
Net Cash - Beginning Balance	0.3	-0.1	-1.0	0.5	0.5
Net Cash - Ending Balance	-1.2	0.3	-0.1	-1.0	2.8
Cash Interest Paid	0.2	0.2	0.2	0.3	0.5
Cash Taxes Paid	0.2	0.2	0.2	0.3	0.1

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Restated Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	LKR	LKR	LKR	LKR	LKR
Exchange Rate (Period Average)	110.556216	113.05418	114.967315	108.350068	110.592705
Auditor	KPMG	KPMG	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Sales Tea	23.9	27.5	23.3	25.1	22.9
Sales Rubber	3.6	2.9	1.3	1.8	1.8
Others	0.9	0.7	0.6	0.6	0.2
Total Revenue	28.4	31.2	25.2	27.5	25.0
Cost of Sales	28.5	26.4	22.7	24.4	19.8
Amortisation of Capital Grants	-0.1	-0.1	-0.1	0.0	-
Other Income	-0.1	-0.2	-0.1	0.0	-1.2
Administration Expenses	1.7	1.7	1.5	1.4	1.4
Interest Income	-0.3	-0.6	-0.6	-0.6	-
Profit on Disposal of Property,	-0.1	-0.1	0.0	0.0	-
Total Operating Expense	29.8	27.2	23.4	25.0	19.9
Finance Cost	-0.8	-1.0	-0.7	-0.8	-0.7
Net Income Before Taxes	-2.1	3.1	1.0	1.7	4.4
Provision for Income Taxes	-0.1	0.5	0.2	0.4	0.3
Net Income After Taxes	-2.0	2.5	0.8	1.3	4.1
Minority Interest	0.0	0.0	0.0	0.0	-
Net Income Before Extra. Items	-2.0	2.5	0.9	1.3	4.1
Net Income	-2.0	2.5	0.9	1.3	4.1
Income Available to Com Excl ExtraOrd	-2.0	2.5	0.9	1.3	4.1
Income Available to Com Incl ExtraOrd	-2.0	2.5	0.9	1.3	4.1
Basic Weighted Average Shares	46.3	46.3	46.3	46.3	46.3
Basic EPS Excluding ExtraOrdinary Items	-0.04	0.05	0.02	0.03	0.09
Basic EPS Including ExtraOrdinary Items	-0.04	0.05	0.02	0.03	0.09
Dilution Adjustment	0.0	-	0.0	-	-
Diluted Net Income	-2.0	2.5	0.9	1.3	4.1
Diluted Weighted Average Shares	46.3	46.3	46.3	46.3	46.3
Diluted EPS Excluding ExtraOrd Items	-0.04	0.05	0.02	0.03	0.09
Diluted EPS Including ExtraOrd Items	-0.04	0.05	0.02	0.03	0.09
DPS-Fully Paid Ord. Shrs	0.00	0.02	0.01	0.02	0.02
Gross Dividends - Common Stock	0.0	0.8	0.4	0.9	0.8
Normalized Income Before Taxes	-2.2	3.0	1.0	1.7	4.4
Inc Tax Ex Impact of Sp Items	-0.1	0.5	0.2	0.4	0.3
Normalized Income After Taxes	-2.1	2.5	0.8	1.3	4.1
Normalized Inc. Avail to Com.	-2.0	2.5	0.9	1.3	4.1
Basic Normalized EPS	-0.04	0.05	0.02	0.03	0.09
Diluted Normalized EPS	-0.04	0.05	0.02	0.03	0.09
Rental Expense, Supplemental	0.2	-	-	-	-
Depreciation	0.8	0.6	0.6	0.7	0.5
Amortization of Intangible	0.3	0.3	0.3	-	0.3
Interest Expense	0.8	1.0	0.7	0.8	0.7
Income Tax	0.1	0.3	0.2	0.2	0.3
Income Tax - Previous Year Adjustment	-0.1	0.0	0.0	0.0	0.0
Current Tax - Total	0.0	0.3	0.2	0.2	0.3
Deferred Taxation	-0.1	0.2	0.0	0.2	-
Deemed Dividend Tax	0.0	0.0	-	-	-
Deferred Tax - Total	-0.1	0.2	0.0	0.2	-
Income Tax - Total	-0.1	0.5	0.2	0.4	0.3
Service Cost - Domestic	0.4	0.3	-	-	-
Interest Cost - Domestic	0.5	0.6	-	-	-
Actuarial Gains and Losses - Domestic	1.7	0.0	-	-	-
Other, Net - Gratuity	-	-	1.4	1.0	0.8
Domestic Pension Plan Expense	2.7	0.9	1.4	1.0	0.8
Defined Contribution Plans - EPF/ESPS	1.0	1.1	0.8	0.9	0.7
Total Pension Expense	3.7	2.0	2.2	1.9	1.5

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Reclassified Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	LKR	LKR	LKR	LKR	LKR
Exchange Rate	113.9	110.945	114.4	113	108.65
Auditor	KPMG	KPMG	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Investment on Sub Leasing of Assets	0.0	0.0	0.0	0.0	0.0
Nursery Stock	0.2	0.2	0.1	0.1	0.1
Produce Stock	2.5	3.1	3.1	2.6	3.3
Consumables, Spares and Others	0.4	0.5	0.4	0.5	0.4
Provision for Slow Moving and Obsolete s	0.0	0.0	0.0	0.0	0.0
Produce Debtors	0.2	0.2	0.1	0.2	0.3
Advance & Prepayments	0.5	0.6	0.4	0.4	0.3
Staff Debtors	0.0	0.0	0.0	0.0	0.0
Other Debtors	0.2	0.3	0.4	0.3	0.2
Provision for doubtful Debts	-0.1	0.0	0.0	0.0	0.0
ESC Recoverable	0.1	0.1	0.2	0.1	0.1
VAT Recoverable	-	-	-	0.0	0.0
Amounts Due from Related Companies	1.1	0.4	1.0	1.0	1.2
Investments in Short Term Securities	0.2	5.4	3.8	1.9	-
Short Term Deposit	-	-	0.0	0.5	2.9
Cash and Bank Balances	0.1	0.4	0.1	0.2	0.1
Total Current Assets	5.3	11.2	9.6	7.8	8.8
Leasehold Right to Bare Land	-	-	-	-	6.1
Leasehold Right to Bare Land	7.3	7.5	7.3	7.4	-
Accumulated Amortisation	-2.1	-2.0	-1.8	-1.7	-
Immovable Estate Assets	-	-	-	-	2.2
Land & Buildings	1.5	1.4	1.0	0.9	0.6
Motor Vehicles	1.1	1.1	1.0	1.0	0.8
Plant & Machinery	4.9	4.6	3.7	3.0	2.4
Furniture & Fittings	0.1	0.1	0.1	0.1	0.1
Equipment	0.5	0.5	0.5	0.4	0.4
Mini Hydro Project	0.0	0.0	0.0	0.0	0.0
Computer & Computer Software	0.3	0.3	0.3	0.2	0.2
Motor Vehicles(1)	-	-	-	0.0	0.1
Plant & Machinery(1)	0.0	0.0	0.2	0.2	0.6
Latrines	0.3	0.3	0.2	0.2	0.2
Water Sanitation & Electricity	0.4	0.4	0.3	0.3	0.3
Workers Housing	0.2	0.2	0.2	0.2	0.2
Others	1.8	1.9	1.6	1.5	1.2
Accumulated Depreciation	-4.3	-4.0	-3.4	-3.0	-2.8
Capital Work in Progress	0.4	0.4	0.2	0.3	0.1
Depreciation	-	-	-3.3	-3.2	-1.2
Mature Plantations	-	-	-	-	5.5
Immovable Estate Assets on Finance lease	1.5	1.7	5.1	5.2	-
Immature Plantations	9.6	8.6	7.3	6.6	1.7
Investments in Subsidiaries	0.0	-	0.0	0.2	-
Long term Investments in Treasury Bonds	-	-	0.0	1.4	-
Lease Rental Receivable	0.2	0.3	0.3	0.3	0.3
Deferred Tax Assets	0.0	0.0	-	-	-
Adjustment	-	-	-	-	-
Total Assets	29.0	34.5	30.4	29.2	28.0
Interest Bearing Loans & Borrowings	0.4	4.5	0.4	0.3	0.4
Finance Lease	0.0	0.0	0.0	0.1	-
Net Liab. to Lessor Payable within 1 Yr	0.0	0.0	0.0	0.0	0.0
Income Tax Payable	0.1	0.3	0.3	0.2	0.3
VAT Payable	0.0	0.0	0.0	0.0	0.0
Trade and Other Payables	0.9	1.2	1.1	0.9	0.8
Accrued Expenses	1.1	1.0	0.9	0.9	0.4
Payable to Employees	1.1	1.0	1.0	0.6	0.7
Other Creditors	-	-	-	-	1.1
Long Standing Unclaimed Creditors	-	-	-	-	0.0
Amonts Due to Related Companies	0.1	0.0	0.1	0.0	0.0
Dividend Payable	0.1	0.0	-	-	-
Bank Overdraft	1.2	0.2	0.2	1.6	0.1
Total Current Liabilities	5.0	8.4	4.0	4.7	3.9
Interest Bearing Loans & Borrowings	0.5	0.9	4.9	5.0	4.5
Liab. to Lessor Payable after 1 Yr	2.1	2.2	2.2	2.3	2.4
Finance Lease	-	-	-	0.0	-
Total Long Term Debt	2.7	3.2	7.1	7.2	6.9
Deferred Income	1.8	1.9	1.7	1.6	1.5
Retirement Benefit Obligations	6.8	4.9	4.3	3.4	2.8
Amounts Due To Related Companies	1.8	2.0	1.9	2.0	2.1
Deferred Taxation	0.3	0.4	0.2	0.2	-
Minority Interest	0.2	0.3	0.3	0.0	-
Total Liabilities	18.7	21.1	19.5	19.1	17.1
Share Capital	4.8	5.0	4.8	4.9	4.3
Share Premium	-	-	-	-	0.8
Revaluation Reserve	2.9	3.0	3.0	3.1	3.4
General Reserve	1.2	1.2	1.0	1.0	0.9
Retained Earnings	1.4	4.2	2.0	1.1	1.6
Total Equity	10.3	13.3	10.8	10.1	10.9
Total Liabilities & Shareholders' Equity	29.0	34.5	30.4	29.2	28.0
S/O-Fully Paid Ord. Shrs	46.3	46.3	46.3	46.3	46.3
Total Common Shares Outstanding	46.3	46.3	46.3	46.3	46.3
Deferred Income	1.8	1.9	1.7	1.6	1.5
Full-Time Employees	9,279	9,397	9,467	10,023	10,286
No. of Shareholders	21,637	21,978	22,297	22,362	22,652
Long Term Debt Maturing within 1 Yr	0.4	4.5	0.4	0.3	0.3
Long Term Debt Maturing within 1-5 Yr	0.5	0.9	4.8	4.8	1.2
Long Term Debt Remaining Maturites	0.0	0.0	0.0	0.2	3.2
Total Long Term Debt, Supplemental	0.9	5.4	5.2	5.3	4.7
Capital Leases Maturing within 1 Yr	0.0	0.0	0.0	0.1	0.1
Capital Leases Maturing within1- 5 Yr	0.0	0.0	0.0	0.0	0.1
Capital Leases Remaining Maturities	0.0	0.0	0.0	0.0	0.0
Total Capital Leases, Supplemental	0.0	0.0	0.0	0.1	0.1
Retirement Benefit Obligations	-6.8	-4.9	-4.3	-3.4	-2.8
Net Assets Recognized on Balance Sheet	-6.8	-4.9	-4.3	-3.4	-2.8

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Updated Normal 31-Dec-2007
Filed Currency	LKR	LKR	LKR	LKR	LKR
Exchange Rate (Period Average)	110.556216	113.05418	114.967315	108.350068	110.592705
Auditor	KPMG	KPMG	KPMG Ford Rhodes Thornton & Company	KPMG Ford Rhodes Thornton & Company	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income	-2.1	3.1	1.0	1.7	4.4
Depreciation	1.1	0.9	0.9	0.9	0.8
Finance Costs	0.8	1.0	0.7	0.8	0.7
Retirement Benefit Obligation	2.7	0.9	1.4	1.0	0.8
Amortizations of Capital Gains	-0.1	-0.1	-0.1	0.0	0.0
Interest Income	-0.3	-0.6	-0.6	-0.6	-0.2
Profit/Loss on Sale of Property, Plant	-0.1	-0.1	0.0	0.0	-0.9
(Increase)/Decrease in Inventories	0.6	0.0	-0.5	0.5	-1.9
Other Receivables	0.2	-0.1	0.0	-0.2	-0.1
Due from Related Companies	-0.7	0.6	0.0	0.2	-0.4
Other Payables	-0.1	0.3	0.5	-0.2	0.6
Amounts Due to Related Co.	0.0	-0.1	0.1	0.0	0.0
Retirement Benefit Payments	-0.6	-0.5	-0.4	-0.3	-0.3
Finance Costs Paid	-0.2	-0.2	-0.2	-0.3	-0.5
Income Tax Paid	-0.2	-0.2	-0.2	-0.3	-0.1
Provision for Doubtful Receivables	0.0	0.0	-	-	-
Provision on Slow Moving Items	0.0	0.0	-	-	-
Provision on Bad & Doubtful Debts	0.0	0.0	-	-	-
Written Off Immature Plantation	0.0	0.0	-	-	-
Adjustments	-	-	-	-	-
Cash from Operating Activities	1.0	4.8	2.7	3.2	2.8
Sale of Property,Plant & Equipment	0.2	0.1	0.0	0.1	0.9
Investment Income Received	0.0	0.0	0.0	0.0	0.0
Interest Income Received	0.3	0.6	0.6	0.6	0.2
Field Development Expenditure	-1.5	-1.3	-1.0	-1.1	-0.6
Purchase of Property, Plant & Equipment	-0.9	-1.6	-1.1	-1.4	-0.5
Proceeds Treasury Bills/ Treasury bonds	5.2	-1.4	-0.6	-1.1	-
Acquisition/ Investments on Subsidiary	-	0.0	0.4	-0.2	-
Cash from Investing Activities	3.5	-3.5	-1.5	-3.0	-0.1
Government Grants Received	0.0	0.3	0.2	0.2	0.2
Proceeds from Long Term Loans	0.0	0.0	-	-	0.0
Repayment of Long Term Loans	-4.8	-0.4	-0.3	0.1	-0.3
Payment of Lease Rental on Finance Lease	0.0	0.0	-0.1	-0.1	-0.1
Payment to Lessor on Lease Rights	-0.3	-0.4	-0.2	-0.2	-0.2
Repayment of Related Party Loans	0.0	0.0	0.0	0.0	0.0
Dividend paid	-0.8	-0.4	0.0	-1.6	-
Cash from Financing Activities	-5.9	-0.9	-0.3	-1.6	-0.4
Net Change in Cash	-1.5	0.4	0.8	-1.5	2.3
Cash - Beginning Balance	0.3	-0.1	-1.0	0.5	0.5
Cash & Cash Equivalents at the end of th	-1.2	0.3	-0.1	-1.0	2.8
Cash Interest Paid	0.2	0.2	0.2	0.3	0.5
Cash Taxes Paid	0.2	0.2	0.2	0.3	0.1

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 30-Sep-2012	Quarter Ending Yr Ago	Annual Year End 31-Dec-2011	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1 (?)	5.2	0.18%	28.4	-10.81%	1.83%	10.93%
Operating Income1 (?)	0.2	-	-1.3	-	-	-
Income Available to Common Excl Extraord Items1 (?)	0.1	-	-2.0	-	-	-
Basic EPS Excl Extraord Items1 (?)	0.00	-	-0.04	-	-	-
Capital Expenditures2 (?)	0.1	-77.32%	0.9	-46.42%	-15.32%	1.11%
Cash from Operating Activities2 (?)	1.1	-	1.0	-80.35%	-32.18%	-15.93%
Free Cash Flow (?)	1.0	-	0.1	-96.67%	-59.71%	-40.58%
Total Assets3 (?)	25.1	-1.19%	29.0	-13.63%	0.03%	5.96%
Total Liabilities3 (?)	15.5	2.44%	18.7	-8.94%	-0.36%	4.24%
Total Long Term Debt3 (?)	2.3	-13.57%	2.7	-13.03%	-28.01%	-17.26%
Employees3 (?)	-	-	9279	-1.26%	-2.54%	-3.96%
Total Common Shares Outstanding3 (?)	46.3	0.00%	46.3	0.00%	0.00%	0.00%
1-ExchangeRate: LKR to USD Average for Period	132.432984	Â	110.556216	Â	Â	Â
2-ExchangeRate: LKR to USD Average for Period	126.688252	Â	110.556216	Â	Â	Â
3-ExchangeRate: LKR to USD Period End Date	131.034433	Â	113.900000	Â	Â	Â

Key Ratios
Â	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Profitability
Gross Margin (?)	-0.33%	15.28%	9.77%	11.34%	20.80%
Operating Margin (?)	-4.71%	12.88%	7.00%	9.07%	20.22%
Pretax Margin (?)	-7.42%	9.83%	4.12%	6.21%	17.43%
Net Profit Margin (?)	-6.97%	8.10%	3.41%	4.73%	16.23%
Financial Strength
Current Ratio (?)	1.06	1.33	2.38	1.64	2.27
Long Term Debt/Equity (?)	0.26	0.24	0.65	0.72	0.63
Total Debt/Equity (?)	0.42	0.59	0.71	0.92	0.67
Management Effectiveness
Return on Assets (?)	-6.25%	7.86%	2.86%	4.44%	16.27%
Return on Equity (?)	-16.54%	20.98%	8.27%	12.10%	46.60%
Efficiency
Receivables Turnover (?)	22.73	24.02	16.05	16.35	17.34
Inventory Turnover (?)	7.07	6.34	6.01	6.16	6.43
Asset Turnover (?)	0.88	0.97	0.85	0.94	1.00

Market Valuation USD (mil)
Enterprise Value2 (?)	12.9	.	Price/Sales (TTM) (?)	0.40
Enterprise Value/Revenue (TTM) (?)	0.54	.	Price/Book (MRQ) (?)	0.99
Enterprise Value/EBITDA (TTM) (?)	12.79	.	Market Cap1 (?)	9.4
1-ExchangeRate: LKR to USD on 7-Aug-2013	131.599899
2-ExchangeRate: LKR to USD on 30-Sep-2012	131.034433

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Financial Strength
Current Ratio (?)	1.06	1.33	2.38	1.64	2.27
Quick/Acid Test Ratio (?)	0.34	0.81	1.38	0.88	1.20
Working Capital1 (?)	0.3	2.8	5.6	3.0	4.9
Long Term Debt/Equity (?)	0.26	0.24	0.65	0.72	0.63
Total Debt/Equity (?)	0.42	0.59	0.71	0.92	0.67
Long Term Debt/Total Capital (?)	0.18	0.15	0.38	0.37	0.38
Total Debt/Total Capital (?)	0.30	0.37	0.42	0.48	0.40
Payout Ratio (?)	0.00%	32.45%	46.99%	65.71%	20.65%
Effective Tax Rate (?)	-	17.26%	18.49%	23.83%	6.90%
Total Capital1 (?)	14.6	21.2	18.6	19.4	18.3
Efficiency
Asset Turnover (?)	0.88	0.97	0.85	0.94	1.00
Inventory Turnover (?)	7.07	6.34	6.01	6.16	6.43
Days In Inventory (?)	51.66	57.60	60.69	59.27	56.72
Receivables Turnover (?)	22.73	24.02	16.05	16.35	17.34
Days Receivables Outstanding (?)	16.06	15.20	22.75	22.33	21.05
Revenue/Employee2 (?)	2,975	3,381	2,670	2,629	2,473
Operating Income/Employee2 (?)	-140	436	187	239	500
EBITDA/Employee2 (?)	-27	536	284	307	580
Profitability
Gross Margin (?)	-0.33%	15.28%	9.77%	11.34%	20.80%
Operating Margin (?)	-4.71%	12.88%	7.00%	9.07%	20.22%
EBITDA Margin (?)	-0.89%	15.85%	10.64%	11.67%	23.47%
EBIT Margin (?)	-4.71%	12.88%	7.00%	9.07%	20.22%
Pretax Margin (?)	-7.42%	9.83%	4.12%	6.21%	17.43%
Net Profit Margin (?)	-6.97%	8.10%	3.41%	4.73%	16.23%
COGS/Revenue (?)	100.33%	84.72%	90.23%	88.66%	79.20%
SG&A Expense/Revenue (?)	6.12%	5.50%	5.99%	5.01%	5.41%
Management Effectiveness
Return on Assets (?)	-6.25%	7.86%	2.86%	4.44%	16.27%
Return on Equity (?)	-16.54%	20.98%	8.27%	12.10%	46.60%
Valuation
Free Cash Flow/Share2 (?)	0.00	0.07	0.04	0.04	0.05
Operating Cash Flow/Share 2 (?)	0.02	0.11	0.06	0.07	0.06
1-ExchangeRate: LKR to USD Period End Date	113.9	110.945	114.4	113	108.65
2-ExchangeRate: LKR to USD Average for Period	113.9	110.945	114.4	113	108.65

Current Market Multiples
Market Cap/Earnings (TTM) (?)	-14.11
Market Cap/Equity (MRQ) (?)	0.99
Market Cap/Revenue (TTM) (?)	0.40
Market Cap/EBIT (TTM) (?)	-64.37
Market Cap/EBITDA (TTM) (?)	9.39
Enterprise Value/Earnings (TTM) (?)	-19.22
Enterprise Value/Equity (MRQ) (?)	1.34
Enterprise Value/Revenue (TTM) (?)	0.54
Enterprise Value/EBIT (TTM) (?)	-87.66
Enterprise Value/EBITDA (TTM) (?)	12.79

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.69
UK Pound	1	Rs.100.79
Euro	1	Rs.86.30

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.