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Financial Ratio Analysis ACL PLC VS KELANI CABLES PLC Solid Analytics
Lanka PVT LTD

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 Financial Ratio
Analysis
ACL PLC

VS

KELANI CABLES PLC

2015 – 2019
Solid Analytics Lanka PVT LTD

1
2
Contents
1. The Introduction ..................................................................................................................................................... 5

1.1 The Background ...................................................................................................................... 5

2. Financial Ratio Analysis and Results Discussion ....................................................................... 6

2.1 Profitability Ratios ................................................................................................................. 6

2.2 Liquidity Ratios ...................................................................................................................... 8

2.3 Efficiency Ratios .................................................................................................................. 10

2.4 Investment Ratios ................................................................................................................. 12

3. Key financial areas of Financial Appraisal of a loan request ................................................. 14

4. Conclusion ................................................................................................................................... 15

References ............................................................................................................................................ 16

Appendix .............................................................................................................................................. 18

3
Abstract

This report is prepared to present the financial ratios of two competitor companies in the same
industry, which are listed in the Colombo Stock Exchange and critically evaluate the results of
the ratios calculated for each of the companies in the industry. The ratio analysis method is
used to provide a comprehensive understanding of the company’s financial position,
performance and changes in the financial position business organizations by only evaluating
the financial information included in the set of financial statements. Financial Ratio analysis
would provide information for various stakeholders to make valid and informed decision about
the company and its future strategic direction. Mainly this report will discuss financial ratios
on the following topics.

1. Profitability Ratios
2. Liquidity ratios
3. Efficiency Ratios
4. Investment Ratios

Apart from the above ratios, this report further discusses the key financial ratios pertaining to
Loan debt and making decisions about debt obligations.

The report is structured as follows; Introduction section, Financial Ratio Analysis and Results
Discussion Section, Key financial areas of Financial Appraisal of a loan request and finally the
summary of the findings and results relating to the companies.

4
1. The Introduction

The meaning of a ratio is; "Statistical presentation of the association with particular two items,
Analysis of Accounting / Financial Ratios are mainly based on Financial Statements.
Therefore, Financial / Accounting Ratios can be explained as follows: “An
accounting/financial ratio is a mathematical presentation of the relationship among two
variables in a set of financial statement." In order to achieve the objective of analysing the
financial ratios of two competitor companies in the same industry, which are listed in the
Colombo Stock Exchange, this report discusses the financial ratios of ACL Cables PLC and
Kelani Cables PLC was selected.

1.1 The Background

ACL Cables PLC

“Since 1962, ACL Cables has been following our vision "To be the preferred brand of electric
cables in the region, whilst strengthening our dominant position in Sri Lanka." ACL Cables
PLC is the largest manufacturer of cables in Sri Lanka having pioneered the industry in 1962.
ACL holds 45% share of the local market and produce the widest range of cables in Sri Lanka.
Today, ACL has grown to be a Group of companies holding 70% share of the cable market in
Sri Lanka”. (ACL Cables PLC, 2020).

Kelani Cables PLC (KCL)

“Kelani Cables was founded in 1969 as a manufacturer and distributor of power and
telecommunication cables and enamelled winding wires. Having begun operations with just
twelve workers, Kelani Cables is a household name today with over 500 - strong workforce
and a solid reputation for quality and stability. Kelani Cables has undergone several changes
in ownership over the years; founded by the Wijegoonawardena family, the company became
a subsidiary of the Australian multinational Pacific Dunlop Cables Group in 1994 and in late
1999, the major shareholding was acquired by ACL Cables PLC. These alliances have

5
provided opportunities for expansion and knowledge sharing which have enabled the
company to enhance its operations. Kelani Cables became a public quoted company in 1973
and its shares trade on the Colombo Stock Exchange”. (KCL PLC , 2015;2016;2017;2018;2019)

2. Financial Ratio Analysis and Results Discussion

2.1 Profitability Ratios

2.1.1 Definitions

Profitability is the underlying tone of all the business ventures. Profit is the financial gain
realized when revenue generated from a business activity exceeds the expenses, costs, and taxes
involved in sustaining that said activity. Therefore the profitability ratio can be interpreted as
a measure the profit earning ability of the business (Paananen et al, 2016).

The gross profit margin is the proportion of income that exceeds the cost of goods sold. A high
gross profit margin shows that an organisation is effectively generating profit over and above
its expenses. The net profit margin is the ratio of net profits to revenues for an organisation; it
mirrors how much each unit of currency of revenue converts to profit (Paananen et al, 2016).

Return on Equity (Net Income / Shareholder’s Equity) is articulated by way of a fraction and
can be considered for any company if net-income and equity are mutually positive numbers.
Net income is considered before dividend payments to ordinary shareholders and after
dividends to preference shareholders and interest to credit lenders (Paananen et al, 2016).

Although gross profit and margin are twofold dimensions of profitability, net profit margin,
which includes a company's aggregate expenses, is a more decisive profitability measure, and
the one frequently scrutinized by market analyst and stakeholders.

Return on Equity considers profits generated on shareholders' equity, but ROCE (Return on
Capital Employed) is the primary measure of how efficiently a company utilizes all available
capital to generate additional profits (Paananen et al, 2016).

Table 1 – Profitability Ratios Comparison

6
 Company Ratio Formula 2019 2018 2017 2016 2015
ACL Gross Gross Profit X 100 15.21% 16.19% 22.10% 23.86% 17.67%
Profit Sales
Ratio
KCL 13.70% 12.60% 15.90% 19.70% 16.50%

ACL Net Profit Profit After Tax X 100 3.40% 4.69% 8.56% 9.91% 6.61%
Ratio Sales
KCL 2.70% 2.30% 5.30% 7.50% 5.30%

ACL Return on Net Income 6.27% 8.89% 20.51% 13.28% 13.60%

Equity Average Shareholders’
(ROE) Equity
KCL 6.30% 5.20% 11.30% 16.80% 12.80%

ACL Return on EBIT X 100 10.26% 14.37% 27.33% 20.44% 22.64%

Investment Capital Employed*
KCL 12.20% 8.80% 15.40% 22.60% 18.10%
(ROI) EBIT – Earnings Before
Interest and Tax

(Equity Capital + Long

Term Debts)*

Source: ACL PLC (2015;2016;2017;2018;2019) and KCL PLC (2015;2016;2017;2018;2019)

2.1.2 Interpretation of Profitability Ratios

Profitability ratio’s mentioned in the Table 1numerator takes on various versions of profit
figures such as gross profit, net profit, earnings before interest and tax and net income whilst
the denominator takes sales (turnover) for gross and net profit ratios others takes the value of
equity and capital employed. In an overall view, all profitability ratios are favourable outcome,
meaning both ACL and KCL have positive return for the investors.

For the period under purview, earlier periods from 2015 – 2017 the companies have shown a
slight growth in the profitability ratios ACL – Gross Profit 2017 -22.10%, 2016 - 23.86%,
2015-17.67%. (KCL Gross Profit 2017 - 15.90%, 2016 - 19.70%, 2015 - 16.50%) From 2017
– 2019 the profitability ratios have gone down compared to the 2015- 2017 figures.

In terms of both Gross Profit and Net Profit ratios both companies have exceptionally
performed well, in the sense have recorded highest values in Year 2016.

7
Later years, specifically companies under purview have not performed well, this may due
various internal and external factors. The most notable external factors that occurred during
2019 were the ‘Easter Sunday Bomb Attack’ and ‘The Presidential Election’. The former had
significant impact on the Sri Lankan’s economy and the business operations as there were
island wide curfews were in place and economic and stock market slow down occurred due to
the fear of terrorism. The later factor, is a political factor, however, this factor did not have
significant impact as the former (Colombo Stock Exchange, n.d.)

The other two ratios ROE and ROI, can be considered as most important ratios for the investors
as these are positively correlated with the stock market investor sentiments. When the
companies do well, their performance can be reflected in the share prices, as per ACL and KCL
case, when ACL ROE figures drops, 2018 - 8.89%, 2017 - 20.51% and 2016 - 13.28%, and
similarly there is a drop in the ROI figure for ACL, their share prices also dropped from LKR
100 to LKR 40, it is also worthwhile to note that, Annual reports to be publically available
there is time lag, in the sense that Financial Year 2018 / 2019, will be publically available in
the later part of the Year 2019 (Paananen et al, 2016).

In similarly for KCL when ROE (2019 - 6.30%, 2018 - 5.20%, 2017 - 11.30%, 2016 - 16.80%,
2015 - 12.80%) and ROI drops (2019 - 12.20%, 2018 - 8.80%, 2017 - 15.40%, 2016 - 22.60%,
2015 - 18.10%) then the price drops from LKR 117 to LKR 67.50 (Appendix).

Further it is pertinent note that profitability ratios are one part of the share price movement’s
equation. Share price react to various external and internal factors, For example, Share split or
bonus script issue and economic policy changes also have an impact on share prices.

2.2 Liquidity Ratios

2.2.1 Definitions

Liquidity is the capability to change assets into money/cash swiftly and cheaply. Liquidity
ratios are valuable when are used in comparative form. This analysis might be internal or
external. Internal analysis about liquidity ratios consist of utilising numerous accounting
periods which are stated by means of same accounting methods. Comparing previous time
periods to present procedures permits market analyst to track variations in the trade. External

8
analysis comprises of comparing the liquidity ratios of one business to another or an whole
industry. This information is advantageous to associate the company's strategic positioning in
relation to its competitors when establishing benchmark goals (Paananen et al, 2016).

Table 2 – Liquidity Ratios Comparison

Company Ratio Formula 2019 2018 2017 2016 2015

ACL Current Current Assets / 1.89 2.16 2.29 2.43 1.84
Ratio Current Liabilities

KCL 1.90 2.20 2.00 2.10 2.20

ACL Quick (Current Assets - Stock - 1.75 1.98 1.81 1.96 1.50
Assets Prepayments) /
KCL Ratio Current Liabilities 1.68 2.01 2.10 2.04 1.96

Source: ACL PLC (2015;2016;2017;2018;2019) and KCL PLC (2015;2016;2017;2018;2019)

2.2.2 Interpretation of Liquidity Ratios

Liquidity ratios are the ratios which calculates the capability of a corporation to encounter its
short term liability commitments. These ratios calculates the capability of a corporation to settle
off its short-term debt commitments as soon as they fall due (Paananen et al, 2016).

The liquidity ratios are an outcome of dividing cash and other similar cash equivalent assets by
the current and short term liabilities. Such ratios show the number of times the current liabilities
are covered by cash and other similar cash equivalent assets. If the outcome derived is larger
than 1, it means the short term commitments can be fully recovered (Paananen et al, 2016).

With the above in mind, for each year both companies ACL and KCL have recorded a value
greater than one for both current and quick acid test ratio. Another important aspect to note is
that ACL current ratio range was 1.80 to 2.40 but quick ratio range fell to 1.50 to 1.96, for the
year 2015 - 2019. This means that current asset consist significant proportion of inventory.
Similar pattern can be seen in KCL current ratio range was 1.90 to 2.20 but quick ratio range
fell to 1.6 to 2.10, for the year 2015 – 2019. Comparing ACL and KCL it can be noted that
ACL consist more inventory than KCL.

9
Quick ratio is equivalent as current ratio with the exception of the fact that it excludes stocks /
inventory from the current assets. It takes the assumption that stocks / inventory cannot be
straightforwardly changed into cash and therefore, it is excluded from the liquid assets.

2.3 Efficiency Ratios

2.3.1 Definitions

Efficiency ratios are measures which are utilised in examining an organisation’s capability to
effectively deploy its six capitals, to generate income. Market analyst normally gather
information through the company’s financial statements, such as the balance sheet and income
statement, to aggregate the numbers for efficiency ratio calculations. For example, cost of
goods sold, current assets, or current liabilities information are required for efficiency ratio
calculations (Fridson et al., 2013).

Generally, there is a high correlation between efficiency ratios and profitability ratios. While
corporations resourcefully apportion their resources, organisations become more profitable.
Therefore, if the efficiency ratios have been improved over time, this could indicate that the
company has become more profitable (Fridson et al., 2013).

Table 3 – Efficiency Ratios Comparison

Company Ratio Formula 2019 2018 2017 2016 2015

ACL Debtors (Sales / Average Debtors*) 2.66 2.55 2.90 2.32 2.62
Turnover
Ratio *Average Debtors =
KCL (Opening Debtors + 4.11 3.75 3.84 3.87 3.97
Closing Debtors) /
2
ACL Stock (Cost of Goods Sold / 3.56 3.65 3.47 3.00 3.59
Turnover Average Stock)
KCL Ratio 4.16 4.20 4.06 3.81 3.90
*Average Stock =
(Opening Stock + Closing
Stock) / 2
ACL Creditors (Purchases / *Average 10.97 14.10 6.30 3.50 3.81
Turnover Creditors)
KCL Ratio 7.29 5.21 5.03 5.30 5.80
*Average Creditors =
(Opening Creditors +
Closing Creditors) /2
ACL (Sales / Capital employed) 1.84 1.66 1.65 1.66 2.18

10
 KCL Capital 2.31 2.17 2.05 2.07 2.25
Turnover
Ratio
ACL Assets (Sales / *Average Total 0.97 0.95 0.97 0.81 1.01
Turnover Assets)
Ratio
*Average Total Assets =
(Opening Assets + Closing
KCL Assets ) /2 2.3 2.2 2.0 2.1 2.2

Source: ACL PLC (2015;2016;2017;2018;2019) and KCL PLC (2015;2016;2017;2018;2019)

2.3.2 Interpretation of Efficiency Ratios

In general, turnover ratios are utilised to analyse the efficiency of the corporations on just how
it utilises its assets to produce revenue. The sales revenue is associated with different assets, to
calculate how much of the assets are utilised to generate the number of sales. There higher the
number of times better the performance. In this instance, Debtors, Capital and Assets turnover
ratios measure how companies resources such as debtors, capital and its assets to sales (Fridson
et al., 2013).

Both companies ACL and KCL had shown an increasing trend from the year 2015 to 2017,
which means purely based on the ratio components, ACL and KCL both have greatly managed
the resources such as debtors, capital and its assets to sales. But the later part of the period
under purview Debtors, Capital and Assets turnover ratios have decreased but KCL Debtors,
Capital and Assets turnover ratios have increased. For instance, ACL debtor turnover ratio was
at 2.90 at 2017 was reduced to 2.66 by 2019. KCL debtor turnover ratio was at 3.84 at 2017
was reduced to 4.11 by 2019.

Inventory turnover is the amount of times a business trades and changes its inventory of goods
in a period. As such, inventory turnover reflects how well a business controls its costs
associated with its sales efforts. Both companies were able to sustain the Inventory turnover
ratios over the period, where ACL was able convert its inventory to sales (3.00 – 3.60 times)
while KCL was able to convert its inventory to sales (3.90 – 4.20 times), KCL performance
was better than ACL. Contrastingly, KCL performance in Creditors Turnover Ratio was better

11
than ACL except in 2017 where ACL showed a value of 14.10 and KCL showed a value of
5.21.

2.4 Investment Ratios

2.4.1 Definitions

These ratios are also identified as Earnings Ratios. These ratios are mostly calculated for the
requirements of the shareholders who look for to invest in the organisations.

Table 4 – Investment Ratios Comparison

Company Ratio Formula 2019 2018 2017 2016 2015

ACL Earnings ( Profit attributable to 4.67 5.82 9.33 9.13 14.35
per Share Ordinary Share Holders /
Weighted average No. of
KCL Ordinary Shares ) 10.31 9.03 17.27 22.79 14.78

*Weighted average No. of

Ordinary Shares =
Number of Shares x
Period Retained as Shares
(Time Factor)
ACL Price (Market price per share / 6.99 7.04 5.84 5.35 5.30
Earnings Earnings per share)
KCL Ratio 6.54 10.30 6.80 4.94 5.41

ACL Pay-out ( Dividend per Ordinary 0.32% 0.26% 0.16% 0.22% 0.07%
ratio share / Earnings per share)
KCL x 100 0.34% 0.39% 0.26% 0.13% 0.10%

ACL Dividend (Profit After taxes & 3.08 3.88 6.22 4.57 14.35
Cover Preference Dividends /
KCL Ratio Dividends for Ordinary
Shares) 2.95 2.58 3.84 5.06 9.86
ACL 98.73 96.63 87.39 79.08 123.39

12
 KCL Net Asset (Ordinary Share Capital + 169.05 169.13 159.38 146.47 126.56
Value Per Reserves) / No.of.
Share Ordinary Shares Issued.

Source: ACL PLC (2015;2016;2017;2018;2019) and KCL PLC (2015;2016;2017;2018;2019)

2.4.2 Interpretation of Investment Ratios Presented In Table 4

Earnings per share (EPS) is measured as a corporation's profit divided by the shares by
weighted average number of Ordinary Shares. The outcome act as a pointer of a firm's
profitability (Tyson, 2018).

Associating EPS in absolute terms might not have ample importance to shareholders because
ordinary shareholders don’t have straight access to the firm’s earnings. Instead, shareholders
would compare EPS with the share price of the stock to determine the value of earnings and
how investors feel about future growth. From an investor perspective both share price and
earnings per share have reduced over the period under review. (ACL EPS - 4.67, 5.82, 9.33,
9.13, 14.35) and (KCL EPS - 10.31, 9.03, 17.27, 22.79, 14.78).

The P/E ratio aids shareholders assess the market value of a share as compared to the
corporation's earnings. The P/E demonstrate what the market would be prepared to acquire
today for a share based on its past and future earnings. A high P/E would mean that a share's
price is high relative to earnings that means it’s probably overvalued. ACL and KCL both have
depicted high Price Earnings Ratio over the period under purview. A caveat in determining
earnings, as deciding a suitable earnings figure would be more difficult. Shareholders must
decide in what way to describe earnings and other factors impacted earnings (Tyson, 2018).

The pay-out ratio is a financial measure depicting the percentage of earnings an organisation
compensates shareholders in an arrangement of dividends, communicated to act as a percentage
of the firm's aggregate earnings. A low payout ratio can indicate that a business is re-investing
the majority of its earnings into business operations (Tyson, 2018).

A payout ratio over 100% specifies that the business is paying out more in dividends than its
earnings, this can be viewed as an unsustainable practice. This indicates that both companies
ACL and KCL have percentage less than 50%, investors may prefer this business strategy as
they would get more dividends (Tyson, 2018).

13
The dividend cover ratio indicates the number of times a business may be able to pay dividends
to its ordinary shareholders using its earnings over a fiscal period. Usually, a higher dividend
coverage ratio is more preferred. (ACL - 3.08, 3.88, 6.22, 4.57, 14.35) and (KCL - 2.95 2.58,
3.84, 5.06, 9.86).

The Net Asset Value (NAV) achieves similar meanings as the share price, as it signifies the
worth of one share of company that is traded in a stock exchange. Basically, if the NAV is
greater than the Market Value, then the share price of the company is undervalued and it is
overvalued if NAV less than Market value (Tyson, 2018). Investors would greatly benefit if
Market Value is less than NAV as when the market corrects itself, investors can sell those
shares at a higher price. As per the NAV values presented in the Table 4 less than the Market
values in Appendix.

3. Key financial areas of Financial Appraisal of a loan request

3.1 Definitions

In order obtain loan and third party debts companies have to satisfy certain debt ratios, so such
corporations can without difficulty acquire the loans from the banks and creditors. Lending or
qualifying ratios, are used by financial institution such as banks and other lending organizations
including creditors in credit analysis. Financial institutions assign a credit score to borrowers
after performing due diligence (Fridson et al., 2013).

Table 5 – Loan Request Ratios Comparison

Company Ratio Formula 2020 2019 2018 2017 2016 2015

ACL Gearing Debt / Equity 0.09 0.10 0.09 0.27 0.41 0.09

KCL 0.05 0.06 0.04 0.06 0.08 0.05

ACL Interest Profit Before Interest / 3.43 3.13 6.49 4.47 3.93 3.43
Cover Interest
KCL 3.68 4.39 5.75 3.58 3.64 3.68

Source: ACL PLC (2015;2016;2017;2018;2019) and KCL PLC (2015;2016;2017;2018;2019)

3.2 Interpretation of Loan Request Ratios Presented In Table 5

14
Gearing is a measurement of a business's monetary leverage, and the gearing ratio is the popular
procedures of appraising a business's financial ability. Gearing ratio calculates how much a
business is funded by debt and how much a business is financed by equity, a high gearing ratio
means the company has a larger proportion of debt compared to equity. Conversely, a low
gearing ratio means the company has a small proportion of debt versus equity (Boyte, 2020).

Basically, when the company has higher gearing banks and financial institutions will not be
willing to provide loans and other finance facilities. Both companies ACL and KCL have
recorded a gearing less than 1%. This means they are greatly funded by equity finance.

A business's interest coverage ratio regulates whether it can settle off its debt commitments.
The ratio is measured by dividing EBIT by the firm's interest expense—the greater the ratio,
the more self-assured to settle its debt commitments. Lenders can utilise this ratio to decide
whether they can lend or not lend to the company. A lower ratio might be unappealing to
investors because it means the corporation is not poised for business expansion. Both
companies have relatively lower interest coverage for the period under purview (Fridson et al,
2013).

4. Conclusion

The financial accounting ratio analysis a method of summarising complex financial reporting,
to understand the underlying financial statement line items and build relationship with one or
more financial components. This would provide great insights to shareholders, potential
investors and other stakeholders. However, it should be noted that the information provided by
such ratios are as useful as the source where it is derived from, for example financial accounting
is governed, controlled and limited by various accounting conventions and principles. Such
restrictions would also restrict the usefulness of such ratios.

15
References

ACL Cables PLC. (2020), “ACL Cables PLC”, ACL Cables PLC - The Largest Manufacturer
of Cables in Sri Lanka, available at: http://www.acl.lk/company_overview (accessed 25
August 2020).

ACL PLC (2015), , rep., Annual Report , ACL PLC, Colombo.

ACL PLC (2016), , rep., Annual Report , ACL PLC, Colombo.

ACL PLC (2017), , rep., Annual Report , ACL PLC, Colombo.

ACL PLC (2018), , rep., Annual Report , ACL PLC, Colombo.

ACL PLC (2019), , rep., Annual Report , ACL PLC, Colombo.

Boyte-White, C. (2020), “What Is a Good or Bad Gearing Ratio?”, Investopedia,

Investopedia, 29 January, available at:
https://www.investopedia.com/ask/answers/121814/what-good-gearing-ratio.asp
(accessed 25 August 2020).

Colombo Stock Exchange. (n.d.). CSE, available at: https://www.cse.lk/home/market

(accessed 25 August 2020).

Fridson, M.S., Alvarez, F. and Rubin, M.A. (2013), Financial Statement Analysis, John
Wiley & Sons, Place of publication not identified, USA.

KCL PLC (2015), , rep., Annual Report , KCL PLC, Colombo.

KCL PLC (2016), , rep., Annual Report , KCL PLC, Colombo.

16
KCL PLC (2017), , rep., Annual Report , KCL PLC, Colombo.

KCL PLC (2018), , rep., Annual Report , KCL PLC, Colombo.

KCL PLC (2019), , rep., Annual Report , KCL PLC, Colombo.

Paananen, M., Palepu, K.G., Healy, P.M., Peek, E., Alexander, D.fl. 2015., Britton, A.,
Jorissen, A., et al. (2016), Financial Statement Analysis, Custom Cengage Learning,
Andover, UK.

Tyson, E. (2018), Investing, John Wiley & Sons, Inc., Hoboken, NJ, USA.

17
Appendix

Table 6 – Financial Figures of ACL PLC 2015 – 2019

ACL 2019 2018 2017 2016 2015

Revenue
10,207,835 8,929,805 8,054,047 6,790,555 7,895,398
Cost of Sales
9,236,040 7,865,346 6,567,847 5,729,860 6,740,484
Gross Profit
971,795 1,064,459 1,486,200 1,060,695 1,154,914
Finance Cost
(165,705) (246,906) (205,646) (187,277) (208,349)
Earnings Before Interest & Tax
567,805 772,894 1,334,925 837,626 818,712
Profit Before Tax
439,403 582,380 1,212,422 710,555 612,220
Profit After Tax
347,108 478,444 1,001,898 544,334 491,775
Equity
Stated Capital
299,488 299,488 299,488 299,488 299,488
Capital Reserves
1,002,568 1,002,568 795,582 849,241 795,582
General Reserves
680,266 680,266 680,266 680,266 680,266
Available For Sale Reserves
1,296 386 2,056
Fair Value Reserve
881 2,828 - - -
Retained Earings
3,550,934 3,394,171 3,107,775 2,268,886 1,838,647
Equity attributable to owners
5,534,137 5,379,321 4,884,407 4,098,267 3,616,039
Non-Current Assets
3,429,127 3,013,813 2,592,911 2,672,095 3,156,606
Current Assets
Inventories
2,871,272 2,311,360 1,995,157 1,791,058 2,032,571
Trade and other receivables
3,744,824 3,924,446 3,083,933 2,476,739 3,380,427
Prepaid lease rentals
- - - - -
Held-to-maturity financial assets
- 466,800 238,608 578,280 -
Cash and cash equivalents
922,269 395,842 815,363 347,268 353,347

7,538,365 7,098,448 6,133,061 5,193,345 5,766,345

Non-Current Liabilities
Defined benefit obiligations
192,004 177,918 139,334 148,994 150,109
Deferred income tax liabilities
291,769 278,776 120,089 82,728 139,186
Borrowings
12,356 100,000 200,000 882,750 1,177,000

496,129 556,694 459,423 1,114,472 1,466,295

18
 Current Liabilities
Trade and other payables
1,506,449 177,918 937,809 1,147,950 2,123,150
Current tax liabilities
291,769 278,776 468,118 308,853 138,626
Borrowings
12,356 100,000 1,976,215 1,195,898 1,578,841

1,810,574 556,694 3,382,142 2,652,701 3,840,617

Other Information
Net profit attributable to
shareholders 347,108 478,445 1,001,898 544,334 491,775
Weighted Average of Ordinary
Shares 119,787,360 119,787,360 119,787,360 119,787,360 59,893,680
Basic Earnings Per Share
2.90 3.99 8.36 4.54 8.21
Dividend Paid
179,681 179,681 179,681 119,787 59,894
Number of shares in issue 119,787,360 119,787,360 119,787,360 59,893,680 59,893,680
Dividend Per Share 1.50 1.50 1.50 2.00 1.00
Market Value Per Share 35.00 40.00 54.50 100.90 76.00

Source: ACL PLC (2015;2016;2017;2018;2019)

Table 7 – Financial Figures of KCL PLC 2015 – 2019

KCL 2019 2018 2017 2016 2015

Revenue
8,492,482,278.00 7,994,364,353.00 7,122,783,962.00 6,619,776,295.00 6,204,431,337.00
Cost of Goods Sold
7,327,030,326 6,987,825,777 5,987,288,964.00 5,317,427,456.00 5,181,504,994.00
Gross Profit
1,165,451,952.00 1,006,538,576.00 1,135,494,998.00 1,302,348,839.00 1,022,926,343.00
Finance Cost
(122,511,302.00) (74,276,646.00) (31,184,360.00) (39,587,569.00) (55,581,000)
Earning Before Interest and 500,627,000
Tax 451,428,000.00 325,934,000.00 535,022,000.00 720,210,000.00
Profit Before Tax
321,625,966.00 263,748,700.00 495,940,899.00 678,622,231.00 441,252,734.00
Profit After Tax
224,706,141.00 196,860,277.00 376,437,913.00 496,726,991.00 322,308,246.00
Equity
Stated Capital
218,000,000 218,000,000 218,000,000 218,000,000 218,000,000
Capital Reserves
353,276,640 353,276,640 260,444,530 260,444,530 260,444,530
General Reserves
431,136,000 431,136,000 431,136,000 431,136,000 431,136,000
Available For Sale Reserves
- - - -
Fair Value Reserve
- - - -
Retained Earings 1,850,232,411
2,677,279,962 2,686,275,030 2,566,225,805 2,284,298,808
Equity attributable to owners
3,679,692,602 3,688,687,670 3,475,806,335 3,193,879,338 2,759,812,941

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 Non-Current Assets
1,218,515,668 1,154,497,616 932,264,850 924,790,378 934,880,380
Current Assets
Inventories
1,846,445,397 1,676,332,970 1,648,221,958 1,299,620,252 1,488,156,982
Trade and other receivables
1,972,629,349 2,161,456,122 2,107,193,618 1,598,975,160 1,818,431,915
Amount due from related
companies 27,411,010 84,473,058 41,854,000 41,854,000 42,771,473
Value added tax recoverable
575,758,110 394,906,105 246,915,539 127,746,354 16,411,243
Deposits and prepayments
14,782,199 1,428,620 10,438,325 9,956,018 9,892,707
Investment in Sri Lankan
Developments Bonds 164,143,800 489,035,300 -
Cash and cash equivalents
1,164,099,136 671,656,354 498,776,634 603,570,166 413,889,247

5,601,125,201 4,990,253,229 4,717,543,874 4,170,757,250 3,789,553,567

Non-Current Liabilities
Defined benefit obiligations
113,793,053 94,980,418 83,311,661 83,311,661 76,305,731
Deferred income tax liabilities 85,117,607
57,750,043 124,782,310 58,976,789 72,968,586
Borrowings
7,876,972 11,100,768 7,841,000 31,841,000 55,841,000

179,420,068 230,863,496 150,129,450 188,121,247 217,264,338

Current Liabilities
Trade and other payables 965,229,132
667,959,369 1,343,436,799 1,340,158,210 1,039,634,030
Amount due to related 130,817,479
companies 485,666,790 281,230,653 189,604,819 152,369,808
Current taxation
337,060,199 290,895,714 254,627,512 359,327,044 247,661,423
Unclaimed dividends
13,394,318 12,111,368 11,102,821 8,670,493 6,726,122
Interest bearing borrowings
1,115,220,908 230,961,000 24,000,000 24,000,000 24,000,000
Bank overdrafts
341,226,615 79,416,145 204,379,577 129,175,352 520,623,672

2,960,528,199 2,238,051,679 2,023,872,939 1,713,176,727 1,895,057,828

Other Information
Net profit attributable to 376,437,913 496,726,991 322,308,246
shareholders 224,706,141 196,860,277
Weighted Average of
Ordinary Shares 21,800,000 21,800,000 21,800,000 21,800,000 21,800,000.00
Basic Earnings Per Share
10.310 9.03 17.27 22.79 14.78
Dividend Paid
76,300,000 76,300,000 98,100,000 98,100,000 32,700,000
Number of shares in issue 21,800,000 21,800,000 21,800,000 21,800,000 21,800,000
Dividend Per Share 3.50 3.50 4.50 3.00 1.50
Market Value Per Share 67.40 93.00 117.50 112.50 80.00

Source: KCL PLC (2015;2016;2017;2018;2019)

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