STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME
For the Year Ended 31st March 2021 2020
Note Rs. Rs.

Revenue 5 2,973,106,405 6,718,236,808

Cost of Sales (2,730,215,005) (6,078,604,474)
Gross Profit 242,891,400 639,632,334
Other Income 6 435,406,681 293,632,415
Selling and Distribution Expenses 7 (32,473,676) (41,539,708)
Administrative Expenses (391,395,182) (469,158,399)
Impairment Reversal / (Charge) on Trade Receivables 8 3,329,318 (108,772,941)
Other Operating Expenses (62,668,142) (69,061,871)
Profit from Operations 195,090,399 244,731,830

Finance Income 1,849,098 43,273,553

Finance Cost (177,863,775) (267,385,322)
Net Finance Cost 9 (176,014,677) (224,111,769)

Profit Before Tax 10 19,075,722 20,620,061

Income Tax (Expense) / Reversal 11 (14,570,419) 82,792,884

Profit for the Year 4,505,303 103,412,945

Other Comprehensive Income

Items that will Never be Reclassified to Profit or Loss
Remeasurement of Employee Benefits - Actuarial Gain 27.2 1,065,586 5,712,505
Deferred Tax Charge on Defined Benefit Plan 11.3 (255,741) (1,599,501)
Total Other Comprehensive Income, net of Tax 809,845 4,113,004

Total Comprehensive Income for the Year 5,315,148 107,525,949

Basic and Diluted Earnings Per Share 12 1.24 28.56

Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (Adjusted EBITDA) 14 331,493,994 378,931,926

The Notes annexed form an integral part of these Financial Statements.

Figures in brackets indicate deductions.

48 ANNUAL REPORT 2020 / 2021

STATEMENT OF FINANCIAL POSITION
As at 31st March 2021 2020
Note Rs. Rs.
ASSETS
NON CURRENT ASSETS
Property, Plant & Equipment 15 508,332,209 566,792,290
Right-of-use Asset 16 56,084,899 78,544,690
Intangible Assets 17 6,392,148 9,729,965
Financial Investments 18 11,558,103 11,490,056
Rental Receivable from Trade Debtors 19.1 1,300,605,035 1,659,274,059
Deferred Tax Asset 20 184,233,458 170,720,440
Total Non Current Assets 2,067,205,852 2,496,551,500
Current Assets
Inventories 21 4,386,035,693 4,235,608,373
Trade and Other Receivables 22 189,270,423 379,443,808
Rental Receivable from Trade Debtors 19.2 429,188,058 386,212,845
Deposits and Prepayments 23 143,795,703 60,975,031
Cash & Cash Equivalents 24.1 17,278,304 7,920,473
Total Current Assets 5,165,568,181 5,070,160,530
Total Assets 7,232,774,033 7,566,712,030
EQUITY & LIABILITIES
Equity
Stated Capital 25 49,375,150 49,375,150
General Reserve 26 887,347,500 887,347,500
Retained Earnings 2,419,620,055 2,431,362,944
Equity attributable to Owners of the Company 3,356,342,705 3,368,085,594
Non Current Liabilities
Employee Benefits 27 96,116,809 91,493,075
Lease Liability 28.1 63,257,392 75,165,670
Total Non Current Liabilities 159,374,201 166,658,745
Current Liabilities
Trade and Other Payables 29 936,046,921 498,549,837
Amount due to Related Party 30 1,826,684,846 81,514,793
Current Tax Liabilities 31 16,842,337 3,334,486
Provision for Warranty 32 651,835 2,660,359
Short Term Borrowings 33 863,724,158 3,360,660,856
Lease Liability 28.1 19,172,790 29,140,340
Bank Overdrafts 24.2 53,934,240 56,107,020
Total Current Liabilities 3,717,057,127 4,031,967,691
Total Liabilities 3,876,431,328 4,198,626,436
Total Equity & Liabilities 7,232,774,033 7,566,712,030
Net Assets per Share 926.95 930.19
The Notes annexed form an integral part of these Financial Statements.
It is certified that the Financial Statements have been prepared and presented in compliance with the requirements of the Companies Act, No. 07 of 2007.

A R T Ranasinghe U Gautam
Chief Financial Officer Chief Executive Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.
Approved and signed for and on behalf of the Board of Directors of Lanka Ashok Leyland PLC;

A K S A Jayasena D A Abeyawardene
Chairman Director
Colombo, 29th July 2021
ANNUAL REPORT 2020 / 2021 49
 STATEMENT OF CHANGES IN EQUITY

Stated General Retained Total

Capital Reserves Earnings Equity
Rs. Rs. Rs. Rs.

Balance as at 01st April 2019 49,375,150 887,347,500 2,357,581,162 3,294,303,812

Total Comprehensive Income

Profit for the year - - 103,412,945 103,412,945
Other Comprehensive Income for the year - - 4,113,004 4,113,004
Total Comprehensive Income - - 107,525,949 107,525,949

Transactions with Owners of the Company

Contribution / Distribution
Unclaimed Dividend Reversed - - 2,464,263 2,464,263
Dividend - - (36,208,430) (36,208,430)
Total Transactions with Owners of the Company - - (33,744,167) (33,744,167)

Balance as at 31st March 2020 49,375,150 887,347,500 2,431,362,944 3,368,085,594

Balance as at 01st April 2020 49,375,150 887,347,500 2,431,362,944 3,368,085,594

Total Comprehensive Income

Profit for the year - - 4,505,303 4,505,303
Other Comprehensive Income for the year - - 809,845 809,845
Total Comprehensive Income - - 5,315,148 5,315,148

Transactions with Owners of the Company

Contribution / Distribution
Unclaimed Dividend Reversed - - 1,046,178 1,046,178
Dividend - - (18,104,215) (18,104,215)
Total Transactions with Owners of the Company - - (17,058,037) (17,058,037)

Balance as at 31st March 2021 49,375,150 887,347,500 2,419,620,055 3,356,342,705

The Notes annexed form an integral part of these Financial Statements.

Figures in brackets indicate deductions.

50 ANNUAL REPORT 2020 / 2021

Profitability/Efficiency Ratio
Gross Profit Margin
Gross Profit
Gross Profit Margin = ∗ 100%
Sales Revenue
242,891,400
= 2,973,106,405 ∗ 100%

= 8.17%

Net Profit Margin

Net Profit
Net Profit Margin = Sales Revenue ∗ 100%
5,946,213
= 2,973,106,405 ∗ 100%

= 0.2%

ROCE
PBIT
ROCE = ∗ 100%
Capital Employed

PBIT
= Total assets− Current liabilities ∗ 100%
19,075,722
= 7,232,774,033− 3,717,057,127 ∗ 100%

= 0.543%

Financial Efficiency Ratios

Stock turnover
Cost of sales
Stock turnover = Average stock

2,730,215,005
= 4,310,822,033

= 0.633 = 1 time

Stock residency period

365
Stock residency period = Stock turnover ratio
365
= 0.622
 = 586.37 = 586 days

Debtors’ turnover ratio

Cost of sales
Debtors’ turnover ratio = Avg. debtors

2,730,215,005
= 1,887,640,000

= 1.45

Debtors’ collection period

365
Debtors’ collection period = Debtor turnover ratio
365
= 1.45

= 251.72 = 252 days

Creditors turnover ratio

Cost of sales
Creditors turnover ratio = Avg. creditors

2,730,215,005
= 717,298,379

= 3.81

Creditor’s payment period

365
Creditor’s payment period = Creditor turnover ratio
365
= 3.81

= 95.8 = 96 days

Cash operating cycle

Cash operating cycle = Stock resident period+Debtor collection period–Creditor collection period
= 586 + 251 – 95
= 742 days
Liquidity Ratios
Current ratio
Current Ratio = Current Assets: Current Liabilities
= 5,165,568,181: 3,717,057,127
= 1.4: 1

Quick asset ratio

Quick asset ratio = quick asset: current liabilities
= (Current asset – Inventory): Current liabilities
= (5,165,568,181- 4,386,035,693): 3,717,057,127

= 0.21: 1

Gearing ratio
Non−current liabilities
Gearing ratio = (Equity + Non−current liabilities) ∗ 100%

159,374,201
= (3,356,342,705 + 159,374,201) ∗ 100%

= 4.53%

Shareholder Ratios
Earnings per share
Net Profit after tax
Earnings per share = No. of ordinary shares

4,505,303
= 1,100,011

= 4.1

Return on equity
Net Profit after Tax
Return on Equity = ∗ 100%
Equity

4,505,303
= 3,356,342,705 ∗ 100%

= 0.13%