CARGILLS (CEYLON) PLC

Provisional financial statements

Three months ended 30 June 2008

A Member of the Ceylon Theatres Group

 Cargills (Ceylon) PLC - Provisional financial statements

Income statement

Group Company

For the quarter ended 30 June 2008 2007 Variance 2008 2007 Variance
Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Revenue 7,334,254 5,417,189 1,917,065 4,069,262 2,842,709 1,226,553

Cost of sales (6,714,064) (5,026,142) (1,687,922) (3,877,569) (2,686,146) (1,191,423)

Gross profit 620,190 391,047 229,143 191,693 156,563 35,130

Other income 127,053 108,055 18,998 77,570 62,834 14,736

Distribution costs (129,295) (98,680) (30,615) (24,444) (17,960) (6,484)
Administrative expenses (293,413) (152,309) (141,104) (140,772) (104,978) (35,794)
Other expenses (43,404) (20,719) (22,685) (7,219) (2,620) (4,599)
Finance costs (101,813) (88,845) (12,968) (43,698) (46,213) 2,515

Profit before taxation 179,318 138,549 40,769 53,130 47,626 5,504

Income tax expense (44,360) (26,739) (17,621) (3,106) (16,251) 13,145

Profit for the period 134,958 111,810 23,148 50,024 31,375 18,649

Attributable to:
Equity shareholders of the parent 118,769 101,146 17,623 50,024 31,375 18,649
Minority interest 16,189 10,664 5,525 - - -
134,958 111,810 23,148 50,024 31,375 18,649

Earnings per share (Rs.)

As per the 5,600,000 shares in issue
as at 30 June 2007 21.21 18.06 8.93 5.60
As per the 224,000,000 shares in issue
as at 30 June 2008 0.53 0.45 0.22 0.14

Dividend per share (Rs.) - - - -

Explanatory notes are given on page 5

2
 Cargills (Ceylon) PLC - Provisional financial statements

Balance sheet

Group Company
(Audited) (Audited)
As at 30 June 31 March 30 June 31 March
2008 2008 2008 2008
Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

ASSETS
Non current assets
Property, plant and equipment 4,572,727 4,583,244 2,697,428 2,641,340
Intangible assets 56,460 58,307 - -
Investments in subsidiaries - - 535,446 535,446
Other investments 45,541 45,541 45,541 45,541
Deferred taxation 23,709 25,002 - -
4,698,437 4,712,094 3,278,415 3,222,327
Current assets
Inventories 2,010,825 2,579,060 1,054,968 1,380,083
Trade and other receivables 1,120,991 768,474 366,093 210,779
Amounts due from related companies 231,093 123,930 735,769 890,439
Short term investments 5,550 5,550 5,430 5,430
Cash and bank balances 216,332 214,208 143,081 87,846
3,584,791 3,691,222 2,305,341 2,574,577
Total assets 8,283,228 8,403,316 5,583,756 5,796,904

EQUITY AND LIABILITIES

Equity attributable to
equity holders of the company
Stated capital 130,723 130,723 130,723 130,723
Reserves 662,428 662,428 654,500 654,500
Accumulated profits 822,131 748,539 446,482 438,458
Shareholders' funds 1,615,282 1,541,690 1,231,705 1,223,681
Minority interest 373,184 353,818 - -
Total equity 1,988,466 1,895,508 1,231,705 1,223,681

Non current liabilities

Borrowings 486,375 532,745 87,500 100,000
Deferred taxation 227,755 243,703 183,416 192,780
Retirement benefit obiligations 134,801 118,475 91,983 76,856
848,931 894,923 362,899 369,636
Current liabilities
Trade and other payables 3,053,860 3,606,511 2,491,674 3,128,906
Income tax payable 43,352 83,557 13,115 65,194
Amounts due to other related company 100,052 101,039 131,652 155,511
Dividend payable 11,652 6,734 11,652 6,734
Borrowings 2,236,915 1,815,044 1,341,059 847,242
Total current liabilities 5,445,831 5,612,885 3,989,152 4,203,587
Total liabilities 6,294,762 6,507,808 4,352,051 4,573,223
Total equity and liabilities 8,283,228 8,403,316 5,583,756 5,796,904

Net asset value per share (Rs.)

As per the 5,600,000 shares in issue as at 31 March 2008 288.44 275.30 219.95 218.51
As per the 224,000,000 shares in issue as at 30 March 2008 7.21 6.88 5.50 5.46

Explanatory notes are given on page 5.

I certify that these provisional financial statement have been prepared in accordance with the requirement of the Companies
Act No. 7 of 2007

Signed
S L W Dissanayake (Group Financial Controller)

The Board of Directors is responsible for the preparation and presentation of these financial statements.
These financial statements have been approved by the Board of Directors on 19 August 2008.

Signed for and on behalf of the Board of Directors

V R Page ( Deputy Chairman / Managing Director )

P S Mathavan ( Executive Director - Finance )

Colombo 3
 Cargills (Ceylon) PLC - Provisional financial statements

Cashflow statement

Group Company

For the quarter ended 30 June 2008 2007 2008 2007

Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 179,318 138,549 53,130 47,626

Adjustments for :
Depreciation/amortisation 158,692 138,708 69,480 43,614
Provision for gratuity 25,532 10,984 24,334 9,476
Amortisation of intangible assets 1,847 1,483 - -
Profit on disposal of property, plant and equipment (485) (20) - (20)
Provision for inventories 1,580 1,795 1,580 1,795
Net finance cost 101,813 88,845 43,698 46,213
Dividend income - (450) - (450)

Operating profit before working capital changes 468,297 379,894 192,222 148,254

Decrease in inventories 566,655 356,190 323,535 260,327

Increase in trade and other receivables (352,512) (16,143) (155,315) (49,670)
(Increase)/decrease in related company receivables (107,161) 408 154,670 115,466
Decrease in trade and other payables (625,294) (428,742) (686,779) (408,950)
(Decrease)/increase in related company payables (990) (21,359) (23,861) 49,177

Cash generated from operations (51,005) 270,248 (195,528) 114,604

Tax paid (26,576) (19,552) (15,000) (12,735)
Interest paid (102,165) (88,845) (59,724) (54,872)
Gratuity paid (9,207) (1,438) (9,207) (1,438)
Net cash (used in)/generated from operating activities (188,953) 160,413 (279,459) 45,559

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment (151,453) (76,013) (125,568) (15,796)
Proceeds from disposal of property, plant and equipment 3,758 20 - 20
Interest income 352 - 16,026 8,659
Dividend received - 450 - 450
Net cash used in investing activities (147,343) (75,543) (109,542) (6,667)

CASH FLOWS FROM FINANCING ACTIVITIES

Temporary borrowings receipts/(repayment) -net 229,014 8,118 379,014 8,118
Repayment of long term loans (53,900) (42,120) (12,500) -
Dividends paid (37,082) (27,698) (37,082) (27,698)
Net cash generated/(used in) from financing activities 138,032 (61,700) 329,432 (19,580)

Net (decrease)/increase in cash and cash equivalents (198,264) 23,170 (59,570) 19,312
Cash and cash equivalents at the beginning of the period (1,085,486) (758,659) (539,396) (654,482)
Cash and cash equivalents at the end of the period (1,283,750) (735,489) (598,965) (635,170)

Analysis of cash and cash equivalents 216,332 214,543 143,081 124,993

Cash and bank balances (1,500,082) (950,032) (742,046) (760,163)
Bank overdraft (1,283,750) (735,489) (598,965) (635,170)

Explanatory notes are given on page 5

4
 Cargills (Ceylon) PLC - Provisional financial statements

Statement of changes in equity

Attributable to equity holders of parent
Stated Capital Revaluation General Accumulated Total Minority Total
capital reserve reserve reserve profits interest equity

Rs' 000 Rs' 000 Rs' 000 Rs' 000 Rs' 000 Rs' 000 Rs' 000 Rs' 000

Group

Balance as at 1 April 2007 130,723 7,928 619,000 35,500 491,461 1,284,612 183,731 1,468,343
Net profit for the year - - - - 101,146 101,146 10,664 111,810
Adjustment for debit balance in minority - - - - (4,952) (4,952) 4,952 -
Dividend - - - - (28,000) (28,000) - (28,000)
Balance as at 30 June 2007 130,723 7,928 619,000 35,500 559,655 1,352,806 199,347 1,552,153

Balance as at 1 April 2008 130,723 7,928 619,000 35,500 748,539 1,541,690 353,818 1,895,508
Net profit for the year - - - - 118,769 118,769 16,189 134,958
Adjustment for debit balance in minority - - - - (3,177) (3,177) 3,177 -
Dividend - - - - (42,000) (42,000) - (42,000)
Balance as at 30 June 2008 130,723 7,928 619,000 35,500 822,131 1,615,282 373,184 1,988,466

Company

Balance as at 1 April 2007 130,723 - 619,000 35,500 383,252 1,168,475

Net profit for the period - - - - 31,375 31,375
Dividends - - - - (28,000) (28,000)
Balance as at 30 June 2007 130,723 - 619,000 35,500 386,627 1,171,850

Balance as at 1 April 2008 130,723 - 619,000 35,500 438,458 1,223,681

Net profit for the year - - - - 50,024 50,024
Dividends - - - - (42,000) (42,000)
Balance as at 30 June 2008 130,723 - 619,000 35,500 446,482 1,231,705

Explanatory notes
1. The results for the quarter ended 30 June 2008 and the balance sheet as at 30 June 2008 are provisional and subject to audit.
2. The same accounting policies are followed as in the annual report for the year ended 31 March 2008.
3. Where appropriate, the previous years presentation has been amended to conform to the current classification.
4. The Board of Directors have proposed a final dividend of 20 Cents per share (on the 224,000,000 shares now in issue) of the
Company for the year ended 31 March which is to be approved by the shareholders at the Annual General Meeting on 19
September 2008.
No event other than above have occurred since the balance sheet date which would require any adjustments to, or disclosure
in the financial statements.
5. There are no material contingent liabilities as at the balance sheet date.
6. A sub - division of each existing issued and fully paid ordinary share of Cargills (Ceylon) PLC into 40 shares was given effect
on 25 April 2008. Accordingly, the number of issued and fully paid ordinary shares was increased from 5,600,000 to
224,000,000 cosequent to the sub - division.
The market prices per share (Lowest & Last traded prices) were stated after the above sub - division. However, the Highest
share price during the quarter was stated prior to the sub - division.

The market price per share recorded

during the 3 months ended 30 June 2008 2007 Variance
Rs Rs Rs

Highest 699.00 699.00 1,301.00

Restated to reflect position after sub - division 50.00

Lowest 40.00 500.00 -

Last traded price 41.00 500.00 -

5
 40, York Street, Colombo 1, Sri Lanka
CARGILLS (CEYLON) PLC
If undelivered, please return to :

PRINTED MATTER

CARGILLS (CEYLON) PLC

40, York Street, Colombo 1
Tel: 2427777 Fax: 2446466
www.cargillsceylon.com
Designed & Printed by
KALAMAZOO
SYSTEMS LIMITED