Colombo Stock Market Financial Research

තිරසාර සංවර්ධන ඉලක්ක

2026-04-01T02:05:00.000-07:00

Food Waste to Compost Project

2026-03-16T04:28:00.000-07:00

මෙම ව්‍යාපෘතියේ අරමුණ ආහාර අපතයෙන් පොහොර නිර්මාණය කර වගාවට භාවිතා කිරීමයි. පාසල් සිසුන්ට Circular Economy concept practical ලෙස ඉගෙනගත හැකි ක්‍රමයක් වේ.

1️⃣ අවශ්‍ය ද්‍රව්‍ය

· Vegetable peels, fruit scraps, leftover rice, bread (no cooked oil or meat)

· Compost bin / large plastic container with lid or corner of school garden

· Dry leaves, shredded paper, sawdust

· Small garden fork / stick

· Gloves

2️⃣ Food Waste එක එකතු කිරීම

· සිසුන්ට පාසල් කෑම කාමරයේ හෝ නිවසේ ආහාර අපතය එකතු කරන්න කියන්න

· අවශ්‍ය නියම: Meat, cooked oil, dairy avoid කරන්න

3️⃣ Compost Bin සකස් කිරීම

· Bin එකේ පහළ කොටසට small stones හෝ broken bricks තබා drainage එක සලස්වන්න

· පසුව dry leaves හෝ shredded paper layer එකක් තබන්න

4️⃣ Food Waste & Carbon Layer එක දමන්න

· Green layer (food waste) + Brown layer (dry leaves, shredded paper) alternate කර දමන්න

· Stick / garden fork එකෙන් thoroughly mix කරන්න

5️⃣ Moisture & Aeration

· Slightly moist කරන්න, overly wet නොවීමට පුරුදු වන්න

· Bin එක cover කර compost aerate කිරීමට 2–3 දිනකට mix කරන්න

6️⃣ Decomposition & Ready Compost

· 4–8 weeks තුළ, material dark brown, earthy smell සහිත ready-to-use compost බවට පත්වේ

· School garden, plant pots, vegetable beds සඳහා භාවිතා කරන්න

7️⃣ Final Application

· Garden soil mix කර plants / flowers fertilize කරන්න

· Studentsට Circular Economy, waste reduction, soil nutrition concept practical ඉගෙනගන්න අවස්ථාව

Project Benefits

· Food waste අඩු කිරීම

· Organic fertilizer production

· Soil fertility improvement

· Students get hands-on learning about sustainability

💡 Classroom Activity Ideas

· Compost diary maintain කිරීම

· Layer photos take කිරීම for project presentation

· Competition: “Best Compost Bin Design”

Old Clothes Reuse Project

2026-03-16T04:20:00.000-07:00

මෙම ව්‍යාපෘතියේ අරමුණ පැරණි ඇඳුම් නැවත භාවිතා කර නව සහ practical items නිර්මාණය කිරීමයි.

1️⃣ පැරණි ඇඳුම් එකතු කිරීම

· පැරණි T-shirts, Jeans, Pants, Dresses එකතු කරන්න.

· පිළිවෙලෙන් wash කර පිරිසිදු කරන්න.

2️⃣ Design Plan එක සකස් කිරීම

· අලුත් item එක (bag, pillow cover, craft item) design sketch කරන්න.

· අවශ්‍ය මාපි හා පියවර notes කරන්න.

3️⃣ Clothes කපා ගැනීම

· T-shirt, jeans, pants කපා ඔබේ design එකට අනුව.

· අවශ්‍ය කොටස් වෙනස් වශයෙන් වෙන් කරන්න.

4️⃣ Sewing / Stitching Preparation

· Needle & thread / Sewing machine සකස් කරන්න.

· Zippers, buttons, ribbons, or straps සූදානම් කරන්න.

5️⃣ Denim Bags හෝ Handbags නිර්මාණය

· Jeans / Denim pieces stitch කර eco-friendly bags නිර්මාණය කරන්න.

· Decorations (buttons, patches, embroidery) එක් කරන්න.

6️⃣ T-shirts & Fabric Craft Items නිර්මාණය

· Old T-shirts recycle කර pouches, pencil cases, or wall hangings නිර්මාණය කරන්න.

7️⃣ Soft Toys / Cushion Covers

· Old fabric pieces නිසා soft toys, cushions, or pillows සෑදිය හැක.

· Stuffing material (cotton, old fabric pieces) භාවිතා කරන්න.

8️⃣ Handmade Items නිර්මාණය

· Reused fabric pieces stitch කර handmade baskets, mats, coasters වැනි items නිර්මාණය කරන්න.

9️⃣ Final Decoration & Presentation

· Colors, embroidery, buttons, ribbons ආදියෙන් අලංකාර කරන්න.

· Items display board එකක් හෝ classroom corner එකකට දැමිය හැක.

Project Benefits

· Plastic bags / waste fabric අඩු කිරීම

· Creative & practical skill development

· Circular Economy concept ඉගෙන ගැනීම

· Eco-friendly products use & gifting

Paper Recycling Project

2026-03-16T04:12:00.000-07:00

Paper Recycling Project

Paper recycling project එකක් පාසල් මට්ටමේ සිසුන්ට Circle Economy concept පුරුද්දක් කරන්න හොඳ ක්‍රමයකි. මෙහිදී පැරණි කඩදාසි නැවත භාවිතා කර අලුත් කඩදාසි / notebooks / craft paper නිර්මාණය කරයි.

1️⃣ අවශ්‍ය ද්‍රව්‍ය

· පැරණි newspaper, magazines, old notebooks

· බ්ලෙන්ඩර් / stick (paper pulp සකස් කිරීමට)

· ලොකු basin හෝ බේසු (water සහ paper mix කිරීමට)

· screen / mesh (paper sheet එක flatten කිරීමට)

· sponge / cloth (excess water absorb කිරීමට)

· rolling pin (paper flatten කිරීමට)

2️⃣ කඩදාසි කැබලිවලට කපා ගැනීම

· Newspaper / magazine එක කුඩා pieces වලට කපාගන්න

· මිනිත්තු 10–15 තුරු වියළුවේ යම් අවශ්‍යතාවක් නම්

3️⃣ Paper pulp සකස් කිරීම

· කුඩා pieces water basin එකකට දමන්න

· Blend / hand mash කර paper pulp එකක් සකස් කරන්න

· Paste වගේ consistency එකක් ලබා ගැනීමේදී water add කරන්න

4️⃣ New sheet නිර්මාණය

1. Screen / mesh එක water basin එකේ දමන්න

2. Pulp එක screen එකේ evenly දමන්න

3. Sponge / cloth එකෙන් extra water squeeze කරන්න

4. Rolling pin එකෙන් sheet flatten කරන්න

5️⃣ Paper sheet වියළීම

· Flatten sheet එකේ sunlight හෝ fan යටතේ වියළන්න

· Fully dry වූ පසු recycled paper ready වේ

6️⃣ අමතර ideas

· Handmade notebooks: Sheets stack කර binding

· Greeting cards / gift tags: Creative design එකක් දමන්න

· Craft projects: Origami, posters, school decoration

✅ Project Benefits

· Plastic & paper waste අඩු කිරීම

· Creative skills වර්ධනය

· Circular Economy concept ප්‍රායෝගිකව ඉගෙනගැනීම

· Eco-friendly craft materials ලබාගැනීම

Paper Bag Production

2026-03-16T04:03:00.000-07:00

Paper Bag Production

Paper bag project එක plastic bags වෙනුවට පරිසර හිතකාමී bag භාවිතය ප්‍රවර්ධනය කරන Circular Economy ව්‍යාපෘතියක් වේ. මෙය පාසල් සිසුන්ට පහසුවෙන් කළ හැකි practical activity එකකි.

1️⃣ අවශ්‍ය ද්‍රව්‍ය

· පැරණි newspapers / magazines / craft paper

· ගම් (glue) හෝ paste

· කතුර

· scale

· pencil

· string / ribbon (bag handle සඳහා)

· cardboard piece (bag bottom එක තද කිරීමට)

2️⃣ කඩදාසි සකස් කිරීම

· newspaper sheet එක rectangular shape එකකට සකස් කරන්න

· bag එකේ ප්‍රමාණයට අනුව paper size තීරණය කරන්න

3️⃣ Bag shape එක සකස් කිරීම

1. paper sheet එක roll කර cylinder shape එකක් වගේ fold කරන්න

2. overlap වන පැත්තට glue දමා අලවන්න

3. මෙය bag එකේ side wall ලෙස සකස් වේ.

4️⃣ Bag bottom සකස් කිරීම

1. bag එකේ පහළ කොටස 5–7 cm fold කරන්න

2. එය box bottom shape එකක් ලෙස fold කරන්න

3. cardboard piece එකක් දමා glue කර bottom තද කරන්න

5️⃣ Bag handle සකස් කිරීම

· bag එකේ ඉහළ පැත්තේ holes 2ක් හෝ 4ක් කරන්න

· string හෝ ribbon දමා handle එකක් සකස් කරන්න

6️⃣ Bag decoration

සිසුන්ට creative activity ලෙස:

· 🌸 drawings

· 🎨 colors

· ♻️ circular economy messages

දමා decorate කරන්න පුළුවන්.

✅ Paper Bag Project භාවිතා කළ හැකි ස්ථාන

· school book fairs

· small shops

· gift bags

· school events

Eco-Brick Project

2026-03-16T03:49:00.000-07:00

Eco-Brick Project

Eco-brick යනු භාවිතා කළ ප්ලාස්ටික් අපතය plastic bottle එකක් තුළ තදින් පුරවා සෑදූ brick එකක් වේ. මෙය අපත ප්ලාස්ටික් පරිසරයට යාම අඩු කර ගොඩනැගිලි හෝ garden furniture වැනි දේවල් සඳහා භාවිතා කළ හැකි පරිසර හිතකාමී ක්‍රමයක් වේ.

1. අවශ්‍ය ද්‍රව්‍ය

· භාවිතා කළ plastic bottles (1.5L හෝ 2L)

· ප්ලාස්ටික් wrappers (chips packets, polythene, plastic bags)

· stick එකක් හෝ ලී කූරක් (plastic තදින් පුරවීමට)

· කතුර

· bottle cap

2. Plastic අපතය එකතු කිරීම

· chips packets

· polythene bags

· plastic food wrappers

· small plastic pieces

⚠️ ආහාර හෝ තෙල් ඉතිරි නොතිබෙන ලෙස plastic පිරිසිදු කර වියළවන්න.

3. Plastic කුඩා කැබලිවලට කපා ගැනීම

· plastic wrappers කතුරෙන් කුඩා pieces වලට කපා ගන්න

· එවිට bottle තුළ හොඳින් තදින් පුරවන්න පුළුවන්

4. Bottle තුළ plastic පුරවීම

· plastic pieces bottle තුළ දමන්න

· stick එකෙන් තදින් තල්ලු කර compact කරන්න

· bottle එක ගොඩක් තදින් පුරවිය යුතුය

✔️ හොඳ eco-brick එකක් අතට ගත්ත විට තද සහ බර විය යුතුය.

5. Bottle cap දමා eco-brick සම්පූර්ණ කිරීම

· bottle එක සම්පූර්ණයෙන් පුරවා

· cap එක තදින් දමන්න

දැන් ඔබට Eco-brick එකක් සෑදී ඇත.

6. Eco-bricks භාවිතා කළ හැකි දේ

· garden benches

· flower beds

· small walls

· school garden decoration

· outdoor furniture

සිසුන් සහ ගුරුවරුන් සඳහා Circular Economy (චක්‍රාකාර ආර්ථිකය) ව්‍යාපෘති අදහස්

2026-03-16T03:39:00.000-07:00

සිසුන් සහ ගුරුවරුන් සඳහා Circular Economy (චක්‍රාකාර ආර්ථිකය) ව්‍යාපෘති අදහස්

චක්‍රාකාර ආර්ථිකය යනු සම්පත් භාවිතය අඩු කරමින්, භාවිතා කළ ද්‍රව්‍ය නැවත භාවිතා කිරීම (Reuse), ප්‍රතිචක්‍රීකරණය (Recycle) කිරීම සහ අපතය අඩු කිරීම මත පදනම් වූ ආර්ථික ක්‍රමයකි. පාසල් මට්ටමේදී මෙම සංකල්පය ක්‍රියාකාරී ව්‍යාපෘති හරහා සිසුන්ට ඉගැන්විය හැක.

1. පාසල් ආහාර අපතය කළමනාකරණ ව්‍යාපෘතිය

සිසුන් පාසල් කෑම කාමරයේ හෝ දිවා ආහාරයෙන් ඇතිවන ආහාර අපතය එකතු කර ඒවා කොම්පෝස්ට් පොහොර බවට පත් කිරීම.

ක්‍රියාකාරකම්

දිනපතා ආහාර අපතය මැනීම
කොම්පෝස්ට් බින් (Compost bin) සකස් කිරීම
එම පොහොර පාසල් වගා ව්‍යාපෘතියට භාවිතා කිරීම

ඉගෙනගන්නා දේ

අපතය අඩු කිරීම
ස්වාභාවික පොහොර නිෂ්පාදනය
Circular Economy cycle එක

2. ප්ලාස්ටික් ප්‍රතිචක්‍රීකරණ ව්‍යාපෘතිය

පාසලේ සිසුන් භාවිතා කළ ප්ලාස්ටික් බෝතල්, කවර සහ පොලිතින් එකතු කර ප්‍රතිචක්‍රීකරණයට යැවීම.

ක්‍රියාකාරකම්

පාසලේ “Plastic Collection Day” එකක් පැවැත්වීම
ප්ලාස්ටික් වලින් flower pots හෝ craft items නිර්මාණය කිරීම
ප්‍රතිචක්‍රීකරණ සමාගම් සමඟ සම්බන්ධ වීම

3. පාසල් Circular Garden ව්‍යාපෘතිය

පාසලේ කුඩා වගා බිමක් (garden) සකස් කර අපතය → පොහොර → වගා → ආහාර ලෙස චක්‍රාකාර පද්ධතියක් ගොඩනගා ගැනීම.

උදාහරණ

ආහාර අපතයෙන් compost
compost භාවිතා කර vegetable garden
garden produce පාසල් කෑමට භාවිතා කිරීම

4. Reuse Craft Project

භාවිතයෙන් ඉවත් කළ ද්‍රව්‍ය (paper, bottles, boxes) භාවිතා කර නව භාණ්ඩ නිර්මාණය කිරීම.

උදාහරණ

plastic bottle → flower pot
old newspapers → bags
cardboard boxes → pen holders

මෙය සිසුන්ගේ සෘජු නිර්මාණාත්මක හැකියාව වැඩි කරයි.

5. School Repair and Reuse Centre

පාසලේ භාවිතා නොවන හෝ කඩා වැටුණු දේවල් repair කර නැවත භාවිතා කිරීම.

උදාහරණ

broken chairs repair කිරීම
old books exchange program
used uniforms reuse program

6. Circular Economy Awareness Campaign

සිසුන් සහ ගුරුවරුන් එක්ව පාසල තුළ Circular Economy පිළිබඳ දැනුවත් කිරීමේ වැඩසටහනක් පැවැත්වීම.

ක්‍රියාකාරකම්

poster competition
awareness drama
“Zero Waste Day” පාසලේ පැවැත්වීම

7. Paper Recycling Project

පාසලේ භාවිතා කළ පැරණි කඩදාසි නැවත කඩදාසි නිෂ්පාදනයට භාවිතා කිරීම.

ක්‍රියාකාරකම්

waste paper collection box
handmade recycled paper making
recycled notebooks නිර්මාණය

සාරාංශය

මෙම ව්‍යාපෘති හරහා සිසුන්ට Circular Economy හි මූලික සංකල්ප වන Reduce, Reuse, Recycle, Repair, Recover යන අදහස් ක්‍රියාකාරී ලෙස ඉගෙනගත හැක. එය පරිසර ආරක්ෂාව, සම්පත් සංරක්ෂණය සහ වගකීම් සහිත පාරිභෝගික හැසිරීම වර්ධනය කිරීමටද උපකාරී වේ.

සිසුන් සහ ගුරුවරුන් සඳහා Circular Economy (චක්‍රාකාර ආර්ථිකය) ව්‍යාපෘති 20ක්

චක්‍රාකාර ආර්ථිකය යනු සම්පත් නැවත භාවිතා කිරීම, අපතය අඩු කිරීම සහ පරිසරයට හිතකර ක්‍රමවලින් නිෂ්පාදන භාවිතා කිරීම මත පදනම් වූ සංකල්පයකි. පාසල් මට්ටමේදී සිසුන්ට මෙම සංකල්පය ඉගෙන ගැනීමට පහත ව්‍යාපෘති ක්‍රියාත්මක කළ හැක.

1. පාසල් ආහාර අපතය කොම්පෝස්ට් ව්‍යාපෘතිය

දිවා ආහාරයෙන් ඇතිවන ආහාර අපතය එකතු කර කොම්පෝස්ට් පොහොර නිෂ්පාදනය කිරීම.

2. ප්ලාස්ටික් එකතු කිරීම සහ ප්‍රතිචක්‍රීකරණ ව්‍යාපෘතිය

ප්ලාස්ටික් බෝතල් සහ පොලිතින් එකතු කර ප්‍රතිචක්‍රීකරණයට යැවීම.

3. පාසල් වගා බිම් (Circular Garden) ව්‍යාපෘතිය

කොම්පෝස්ට් භාවිතා කර පාසලේ vegetable garden එකක් සකස් කිරීම.

4. භාවිතා කළ බෝතල්වලින් පැළවගා ව්‍යාපෘතිය

Plastic bottles භාවිතා කර flower pots සහ vertical gardens සකස් කිරීම.

5. Paper Recycling ව්‍යාපෘතිය

පාසලේ waste paper එකතු කර handmade recycled paper නිර්මාණය කිරීම.

6. Used Books Sharing Project

පැරණි පොත් වෙනත් සිසුන්ට ලබා දෙන book exchange program එකක් ආරම්භ කිරීම.

7. Used School Uniform Reuse Project

භාවිතා කළ පාසල් ඇඳුම් අවශ්‍ය සිසුන්ට ලබා දීම.

8. Food Waste Awareness Campaign

පාසලේ ආහාර අපතය අඩු කිරීම පිළිබඳ දැනුවත් කිරීමේ වැඩසටහනක් පැවැත්වීම.

9. Repair and Reuse Workshop

කඩා වැටුණු පාසල් භාණ්ඩ repair කර නැවත භාවිතා කිරීම.

10. Eco-brick Project

Plastic wrappers bottles තුළ පුරවා eco bricks නිර්මාණය කිරීම.

11. Old Clothes Recycling Project

පැරණි ඇඳුම් භාවිතා කර shopping bags හෝ craft items නිර්මාණය කිරීම.

12. Rainwater Harvesting Project

වැසි ජලය එකතු කර පාසල් වගාවට භාවිතා කිරීම.

13. Organic Fertilizer Making Project

කොළ, පළතුරු අපතය භාවිතා කර ස්වභාවික පොහොර නිෂ්පාදනය.

14. Zero Waste Classroom Project

පන්තියක දිනකට ඇතිවන අපතය අඩු කිරීම සඳහා සැලසුමක් ක්‍රියාත්මක කිරීම.

15. Reusable Lunch Box Campaign

single-use plastic වෙනුවට reusable lunch boxes භාවිතා කිරීමට සිසුන් දිරිමත් කිරීම.

16. Paper Bag Production Project

plastic bags වෙනුවට paper bags නිෂ්පාදනය කිරීම.

17. School Waste Audit Project

පාසලේ දිනකට ඇතිවන waste ප්‍රමාණය මැනීම සහ විසඳුම් සෙවීම.

18. Circular Economy Poster Exhibition

Circular economy පිළිබඳ poster exhibition එකක් සංවිධානය කිරීම.

19. Upcycling Craft Competition

waste materials භාවිතා කර නව භාණ්ඩ නිර්මාණය කිරීමේ තරඟයක් පැවැත්වීම.

20. Community Awareness Program

සිසුන් ගම්මානයට ගොස් circular economy සහ waste management පිළිබඳ දැනුවත් කිරීම.

සාරාංශය
මෙම ව්‍යාපෘති 20 හරහා සිසුන්ට Circular Economy හි මූලික සංකල්ප වන Reduce, Reuse, Recycle, Repair, Recover ක්‍රියාකාරී ලෙස ඉගෙනගත හැක. එය පරිසර ආරක්ෂාව, සම්පත් සංරක්ෂණය සහ සමාජ වගකීම වර්ධනය කිරීමට උපකාරී වේ.

පාසල් සිසුන් සඳහා Circular Economy Project Competition Ideas – 15

Circular Economy (චක්‍රාකාර ආර්ථිකය) යනු Reduce, Reuse, Recycle, Repair, Recover යන සංකල්ප මත පදනම් වූ පරිසර හිතකාමී ආර්ථික ක්‍රමයකි. පාසල් සිසුන්ට මෙම සංකල්පය ප්‍රායෝගිකව ඉගෙන ගැනීමට පහත ව්‍යාපෘති තරඟ අදහස් භාවිතා කළ හැක. 🌱♻️

1. Zero Waste Classroom Competition

පන්තියක දිනකට ඇතිවන අපතය අඩු කර “Zero Waste Classroom” එකක් නිර්මාණය කිරීම.

2. Plastic Bottle Garden Project

භාවිතා කළ ප්ලාස්ටික් බෝතල් භාවිතා කර vertical garden එකක් නිර්මාණය කිරීම.

3. Food Waste to Compost Project

දිවා ආහාරයෙන් ඇතිවන ආහාර අපතය භාවිතා කර කොම්පෝස්ට් පොහොර නිෂ්පාදනය.

4. Waste to Art Competition

අපත ද්‍රව්‍ය භාවිතා කර නව නිර්මාණාත්මක භාණ්ඩ නිර්මාණය කිරීම.

5. Eco-Brick Making Project

Plastic wrappers සහ පොලිතින් bottles තුළ පුරවා eco bricks නිර්මාණය කිරීම.

6. Paper Recycling Innovation

පැරණි කඩදාසි භාවිතා කර handmade paper හෝ notebooks නිර්මාණය කිරීම.

7. Rainwater Harvesting Model

වැසි ජලය එකතු කර භාවිතා කරන system එකක් model ලෙස නිර්මාණය කිරීම.

8. School Waste Audit Project

පාසලේ waste ප්‍රමාණය මැනීම සහ එය අඩු කිරීම සඳහා විසඳුම් ඉදිරිපත් කිරීම.

9. Upcycled Fashion Project

පැරණි ඇඳුම් භාවිතා කර නව fashion items නිර්මාණය කිරීම.

10. Paper Bag Production Project

Plastic bags වෙනුවට paper bags නිෂ්පාදනය කිරීම.

11. Reuse School Items Project

භාවිතා කළ school items (books, bags, stationery) නැවත භාවිතා කිරීමේ program එකක් සැලසුම් කිරීම.

12. Circular Economy Awareness Campaign

Circular economy පිළිබඳ poster, drama, presentation මගින් දැනුවත් කිරීම.

13. Organic School Garden Project

Organic fertilizer භාවිතා කර school vegetable garden එකක් වර්ධනය කිරීම.

14. Repair and Reuse Workshop

කඩා වැටුණු school items repair කර නැවත භාවිතා කිරීම.

15. Community Circular Economy Project

සිසුන් ගම්මානයේ waste management සහ recycling පිළිබඳ awareness program එකක් පැවැත්වීම.

Financial Statement Analysis of Lanka Tiles PLC.

2026-02-22T22:24:00.000-08:00

Financial Statement Analysis of Lanka Tiles PLC.

1. Introduction

Financial statement analysis is a process of evaluating and interpreting company financial statements to gain insights into its financial performance and position. It involves examining the financial statements including balance sheet, income statement and cash flow statement to assess the company’s profitability, liquidity, solvency and overall financial health. Financial statement analysis is a valuable tool for investors, creditors, analysts and management to make informed decisions about a company’s financial performance.

Importance of Financial Statement Analysis

Financial Statement analysis helps to identify the risks and opportunities associated with investing or conducting business with a particular company. So that below are few reasons;

· Investment Decisions: Investor analyze financial statements to evaluate the financial health and performance of company before making investment decisions. By analyzing the company profitability, liquidity and overall financial stability, investors can assess potential risks and rewards of investing in particular company’s stocks and bonds.

· Credit Decisions: Creditors including banks and lending institutions analyze financial statements to determine creditworthiness of borrowers. Creditors male informed decisions after assessing company’s ability to generate cash flow and meet its financial obligations to extend loans or credit to the company.

· Strategic Planning: Company management rely on financial statement analysis to make strategic decisions. After analyzing financial ratios and trends, management can identify areas to improve, allocate resources more efficiently and effectively and set goals for growth and expansion.

· Performance Evaluation: Companies can evaluate their own performance over time by comparing current financial results to previous periods and industry benchmarks. Companies can identify strengths and weaknesses in their operations and take corrective actions.

· Regulatory Compliances: Companies are required to prepare accurate and transparent financial statements in accordance with accounting standards and regulations. Regulators and auditors can analyze financial statements and ensure compliance and detect any potential irregularities and misstatements.

Financial statement analysis provides insights into a company’s long term financial sustainability. By assessing factors like debt levels, capital structure and cash flow, companies can plan for long term growth and stability. So that, financial statement analysis serves as a critical tool for assessing the financial health, performance and prospects of the company. The following report uses horizontal analysis, vertical analysis and ratio analysis to interpret data and discuss the financial performance of Royal Ceramics Lanka PLC.

2. Background of the Company

Lanka Tiles PLC, established in 1984, is one of Sri Lanka's foremost manufacturers and exporters of high-quality ceramic and porcelain tiles. With nearly four decades of expertise, the company has grown from a local manufacturer to an internationally recognized brand, celebrated for its innovative designs, superior quality, and commitment to sustainable practices. Lanka Tiles is headquartered in Colombo and listed on the Colombo Stock Exchange, providing both national and international customers with a wide array of tiles that meet rigorous global standards.

Vision and Mission

Vision:

"Creating a fine art of living."

This vision underscores Lanka Tiles PLC's commitment to elevating living spaces through meticulously crafted tiles that blend aesthetics, functionality, and durability. By staying attuned to evolving design trends, Lanka Tiles aims to shape modern living environments and enhance architectural spaces locally and globally.

Mission:

"Creating contemporary, fashionable lifestyles for our customers while adding value to our stakeholders by excelling in everything we do with the strength of our inherited values." The mission reflects Lanka Tiles PLC’s dedication to consistently delivering products that meet the highest standards of quality and innovation. The company focuses on not only satisfying its customers but also enriching the lives of employees, suppliers, and investors, aiming for excellence in every aspect of its operations.

Core Values

Lanka Tiles PLC upholds key values that guide its business:

· Quality: Ensuring that every tile meets high standards for durability, design, and performance.

· Trust: Building long-standing relationships with customers and stakeholders through transparency and dependability.

· Heritage: Embracing Sri Lankan craftsmanship and cultural heritage in designs that resonate globally.

· Sustainability: Committing to environmentally responsible practices and minimizing its ecological footprint.

Product Portfolio

Lanka Tiles’ product portfolio includes a wide variety of tiles, from classic and elegant designs to innovative contemporary patterns. Notable collections include:

· Majestica: Premium large-format tiles with fine finishes for luxurious spaces.

· Mosaics: Modern and versatile mosaic tiles.

· Essential+: Durable tiles for high-traffic areas.

· Xilosophy: Wood-inspired tile designs that bring natural aesthetics indoors.

· Hearts of Earth: A nature-inspired collection that reflects earthy tones and textures.

Commitment to Innovation and Sustainability

As a leader in the tile industry, Lanka Tiles PLC continually invests in research and development, introducing new products that are not only functional but also environmentally friendly. The company operates under internationally recognized management systems, including ISO 9001 for quality and ISO 14001 for environmental standards, which reinforce its commitment to quality and sustainable manufacturing practices.

The company has also implemented initiatives such as water recycling, efficient energy use, and resource optimization to minimize environmental impact, aligning its operations with global sustainability trends.

Global Expansion and Market Reach

Lanka Tiles PLC has a strong foothold in Sri Lanka and an expanding presence in international markets. Exports account for a growing portion of its revenue, with products reaching countries in North America, Europe, Australia, and South Asia. Through partnerships with leading global retailers and suppliers, the company is positioning itself to be a top tile brand in both the domestic and export markets.

Strategic Focus and Future Direction

Lanka Tiles’ future-oriented strategy emphasizes innovation, market expansion, and enhanced customer experiences. The company is focused on:

· Expanding its product portfolio to cater to a diverse range of tastes and design preferences.

· Enhancing operational efficiency to improve production speed and reduce costs.

· Strengthening its international presence, particularly in high-growth markets like the United States.

Through its commitment to design, quality, and sustainability, Lanka Tiles PLC aims to remain at the forefront of the tile industry in Sri Lanka and beyond, delivering products that redefine spaces and inspire creativity.

3. Financial Statement Analysis

Financial statement analysis provides insights over financial statements and highlights over the financial performance of a company. So basically there are three techniques used to analyze financial statements. Horizontal analysis compares data of the company over several years. So that past data will be compared with the current situation. Trend analysis is also part of horizontal analysis which will analyze the trend of few years. Vertical analysis compare company’s financial performance in relative to a base year. It analyses the vertical effect of the line items of financial statements on other parts of the business and its proportion. Ratio analysis interpret key relations among financial statement items and calculate statistical relationships for better decision making of stakeholders of a business.

So these financial statements can be compared with the past data of the company over several years, with competitors and within the industry guidelines.

3.1 Horizontal Analysis

Horizontal analysis examines the changes in financial statement items over time, identifying trends and shifts. For Lanka Tiles PLC, the data below highlights significant trends between 2023 and 2024.

This can be calculated as follows.

Rupee change = Analysis period amount - Based Period Amount Percentage change = Rupee change / Based period amount *100

Base year – 2023

Time period – 2023 - 2024

3.1.1-Horizontal Analysis of Financial Position

	2024 Rs.’000	2023 Rs.’000	Rupee Change	Percentage Change %
ASSETS
Non-current assets
Property, plant and equipment	8,335,196	7,001,724	1,333,472	19.04%
Investment Properties	-	-	-	-
Intangible assets	85,244	92,155	(6,911)	-7.50%
Investments in subsidiaries	387,701	327,326	60,375	18.44%
Investments in associates	1,135,917	1,076,445	59,472	5.52%
Right of use assets	48,805	19,510	29,295	150.15%
	9,992,863	8,517,160	1,475,703	17.33%
Current assets
Inventories	7,403,268	5,036,886	2,366,382	46.98%
Trade and other receivables	1,448,229	2,410,052	(961,823)	-39.91%
Amounts due from related parties	901,118	1,618,889	(717,771)	-44.34%
Cash and cash equivalents	298,794	790,371	(491,577)	-62.20%
	10,051,409	9,856,198	195,211	1.98%
Total assets	20,044,272	18,373,358	1,670,914	9.09%

EQUITY AND LIABILITIES
Stated capital	900,968	900,968	0	0.00%
Reserves	2,092,276	1,462,469	629,807	43.06%
Retained earnings	11,781,461	10,389,489	1,391,972	13.40%
Equity attributable to equity holders of the	14,774,705	12,752,926	2,021,779	15.85%
Non-controlling interest	-	-	-	-
Total equity	14,774,705	12,752,926	2,021,779	15.85%

Non-current liabilities
Interest bearing liabilities	188,290	434,405	(246,115)	-56.66%
Deferred tax liabilities	1,492,040	1,261,933	230,107	18.23%
Retirement benefit liability	225,793	199,753	26,040	13.04%
	1,906,123	1,896,091	10,032	0.53%
Current liabilities
Trade and other payables	1,591,306	1,867,325	(276,019)	-14.78%

Contract liability	94,211	101,826	(7,615)	-7.48%
Income tax liabilities	581,051	310,577	270,474	87.09%
Amounts due to related parties	131,911	128,730	3,181	2.47%
Current portion of interest bearing	964,965	1,315,883	(350,918)	-26.67%
	3,363,444	3,724,341	(360,897)	-9.69%
Total equity and liabilities	20,044,272	18,373,358	1,670,914	9.09%

3.1.2-Horizontal Analysis of Income Statement

	2024 Rs.’000	2023 Rs.’000	Ru.Change	%Change
Revenue from contracts with customers	16,130,887	18,684,042	(2,553,155)	-13.66%
Cost of Sales	-8,667,606	-10,256,396	1,588,790	-15.49%
Gross Profit	7,463,281	8,427,646	(964,365)	-11.44%
Other Income	34,572	38,377	(3,805)	-9.91%
Distribution Costs	-2,085,527	-2,160,121	74,594	-3.45%
Administrative Expenses	-1,276,815	-1,009,027	(267,788)	26.54%
Finance Cost	-170,276	-264,642	94,366	-35.66%
Finance Income	186,678	518,453	(331,775)	-63.99%
Share of Net Profit of Associate	-34,326	-271,424	237,098	-87.35%
Profit Before Tax	4,117,587	5,279,262	(1,161,675)	-22.00%
Income Tax Expense	-1,201,863	-1,583,154	381,291	-24.08%
Profit for the Year	2,915,724	3,696,108	(780,384)	-21.11%

Other Comprehensive Income

Net Other Comprehensive Income not to be reclassified to
profit or loss in subsequent periods (net of tax):
Revaluation / (Disposal) of Land and Building	899,724	-	-	-
Actuarial Gain/ (Loss) on Retirement Benefit	-54,906	-12,859	(42,047)	326.98%
Deferred tax on components of other	-253,445	-108,983	(144,462)	132.55%
Net Other Comprehensive Income/(loss) that	591,373	-121,842	713,215	-585.36%

Net Other Comprehensive Income may be reclassified to
profit or loss in subsequent periods (net of tax):
Foreign currency translation differences of	-	-	-	-
Share of other comprehensive income of	132,720	-33,324	166,044	-498.27%
Net Other Comprehensive Income/(Loss) that	132,720	-33,324	166,044	-498.27%
Other Comprehensive Income/(loss) for the	724,093	-155,166	879,259	-566.66%

Total Comprehensive Income for the Year, net	3,639,817	3,540,942	98,875	2.79%

Profit attributable to :
Equity holders of the parent	2,915,724	3,696,108	(780,384)	-21.11%
Non-controlling interest	-	-	-	-
Profit for the year	2,915,724	3,696,108	(780,384)	-21.11%

Total comprehensive income attributable to :
Equity holders of the parent	3,639,817	3,540,942	98,875	2.79%
Non-controlling interest	-	-	-	-
Total Comprehensive Income for the Year	3,639,817	3,540,942	98,875	2.79%
Basic Earnings Per Share - Profit Attributable	10.99	13.93	(3)	-21.11%

Horizontal analysis examines the changes in financial statement items over time, identifying significant trends or variations. For Lanka Tiles PLC, notable changes occurred from 2023 to 2024:

· Revenue and Profit: Revenue decreased by 13.66%, from LKR 18,684 million in 2023 to LKR 16,131 million in 2024, which reflects reduced sales possibly due to increased competition or economic conditions. Similarly, profit before tax fell by 22%.

· Assets and Liabilities: Total assets grew by 9.09%, driven mainly by a 46.98% increase in inventory, indicating a build-up of stock possibly due to lower sales turnover.

· Current vs. Non-Current Liabilities: Non-current liabilities decreased by 56.66% due to reductions in interest-bearing liabilities, suggesting an effort to reduce debt and improve financial stability.

Horizontal analysis shows that while Lanka Tiles PLC faced revenue declines, it strengthened its asset base and reduced non-current liabilities, positioning it for more stability in the long term.

3.2-Trend Analysis

3.2.1-Trend Analysis of Financial Position

	2023	2024
Non-Current Assets	100%	117%
Current Assets	100%	102%
Total Assets	100%	109%
Total Equity	100%	116%
Non-Current Liabilities	100%	101%
Current Liabilities	100%	90%
Total Equity and Liabilities	100%	109%

3.2.2-Trend Analysis of Income Statement

	2023	2024
Revenue from contracts with customers	100%	86%
Cost of Sales	100%	85%
Gross Profit	100%	89%
Other Income	100%	90%
Distribution Costs	100%	97%
Administrative Expenses	100%	127%
Finance Cost	100%	64%
Finance Income	100%	36%
Share of Net Profit of Associate	100%	13%
Profit Before Tax	100%	78%
Income Tax Expense	100%	76%
Profit for the Year	100%	79%

Revaluation / (Disposal) of Land and Building
Actuarial Gain/ (Loss) on Retirement Benefit Liability	100%	427%
Deferred tax on components of other comprehensive	100%	233%
Net Other Comprehensive Income/(loss) that will not be	100%	-485%

Foreign currency translation differences of foreign
Share of other comprehensive income of associates	100%	-398%

Net Other Comprehensive Income/(Loss) that may be	100%	-398%
Other Comprehensive Income/(loss) for the Year, net of	100%	-467%
Total Comprehensive Income for the Year, net of tax	100%	103%

Equity holders of the parent	100%	79%
Non-controlling interest
Profit for the year	100%	79%

Equity holders of the parent	100%	103%
Non-controlling interest
Total Comprehensive Income for the Year	100%	103%
Basic Earnings Per Share - Profit Attributable to	100%	79%

Trend analysis evaluates financial performance over multiple periods to identify consistent patterns or shifts. In this case, it helps assess performance stability and growth potential:

· Revenue Trend: Revenue shows a downward trend from 2023 to 2024, decreasing to 86% of its base value in 2023, likely due to external market conditions or increased competition.

· Profit and Efficiency: Gross profit decreased to 89% in 2024, while administrative expenses increased to 127%, indicating rising operational costs. Meanwhile, finance income saw a sharp decline, affecting overall profitability.

· Equity and Liabilities: Total equity rose to 116% in 2024, while current liabilities decreased to 90%, showing an improvement in the company’s solvency and a reduced dependence on short-term debt.

The trend analysis highlights a need to boost revenue streams while maintaining cost control. However, the company’s increasing equity base and reduced current liabilities indicate enhanced financial stability.

3.3-Vertical Analysis

In vertical analysis, every item of the financial statement is represented as a proportion of total account and it is calculated within a given year. In the statement of financial position, every item under assets is calculated as a proportion of total assets and items under equity and liability is represented as a percentage of total equity and liabilities. Also every item under Income statement is expressed as a proportion of total revenue.

Common – size percentage = Analysis Amount/Base Amount *100%

3.3.1-Vertical Analysis of Financial Position

	2023	2024
ASSETS
Non-current assets
Property, plant and equipment	38%	42%
Investment Properties	-	-
Intangible assets	1%	0%
Investments in subsidiaries	2%	2%
Investments in associates	6%	6%
Right of use assets	0%	0%
	46%	50%
Current assets	0%	0%
Inventories	27%	37%
Trade and other receivables	13%	7%
Amounts due from related parties	9%	4%
Cash and cash equivalents	4%	1%
	54%	50%
Total assets	100%	100%

Equity and Liabilities

Equity
Stated capital	5%	4%
Reserves	8%	10%

Retained earnings	57%	59%
Equity attributable to equity holders of the	69%	74%
Non-controlling interest	-	-
Total equity	69%	74%

Non-current liabilities
Interest bearing liabilities	2%	1%
Deferred tax liabilities	7%	7%
Retirement benefit liability	1%	1%
	10%	10%
Current liabilities
Trade and other payables	10%	8%
Contract liability	1%	0%
Income tax liabilities	2%	3%
Amounts due to related parties	1%	1%
Current portion of interest bearing liabilities	7%	5%
	20%	17%
Total equity and liabilities	100%	100%

3.3.2-Vertical Analysis of Income Statement

	2023	2024
Revenue from contracts with customers	100%	100%
Cost of Sales	-55%	-54%
Gross Profit	45%	46%
Other Income	0%	0%
Distribution Costs	-12%	-13%
Administrative Expenses	-5%	-8%
Finance Cost	-1%	-1%
Finance Income	3%	1%
Share of Net Profit of Associate	-1%	0%
Profit Before Tax	28%	26%
Income Tax Expense	-8%	-7%
Profit for the Year	20%	18%

Other Comprehensive Income

Net Other Comprehensive Income not to be reclassified to	0%	0%
profit or loss in subsequent periods (net of tax):	0%	0%

Revaluation / (Disposal) of Land and Building	-	6%
Actuarial Gain/ (Loss) on Retirement Benefit Liability	0%	0%
Deferred tax on components of other comprehensive	-1%	-2%
Net Other Comprehensive Income/(loss) that will not be	-1%	4%
	0%	0%
Net Other Comprehensive Income may be reclassified to
profit or loss in subsequent periods (net of tax):	0%	0%
Foreign currency translation differences of foreign	-	-
Share of other comprehensive income of associates	0%	1%
Net Other Comprehensive Income/(Loss) that may be	0%	1%
Other Comprehensive Income/(loss) for the Year, net of tax	-1%	4%
Total Comprehensive Income for the Year, net of tax	19%	23%
	0%	0%
Profit attributable to :	0%	0%
Equity holders of the parent	20%	18%
Non-controlling interest	-	-
Profit for the year	20%	18%
	0%	0%
Total comprehensive income attributable to :	0%	0%
Equity holders of the parent	19%	23%
Non-controlling interest	-	-
Total Comprehensive Income for the Year	19%	23%
Basic Earnings Per Share - Profit Attributable to Ordinary	0%	0%

Vertical analysis examines each financial statement item as a proportion of a base figure, usually total assets or revenue, to understand the relative structure of financial items within the statements:

· Asset Structure: In 2024, 50% of total assets comprised current assets, while non-current assets represented the other 50%. Inventories, at 37% of total assets, increased significantly, indicating more stock on hand relative to total assets.

· Equity vs. Liabilities: Equity as a percentage of total assets grew from 69% in 2023 to 74% in 2024, showing increased reliance on equity financing over debt.

· Cost and Revenue Composition: Cost of sales was 54% of revenue in 2024, showing efficient cost control, as it declined from the previous year’s 55%. Gross profit margin was slightly up, representing 46% of revenue, indicating good operational efficiency despite revenue challenges.

Vertical analysis reveals a well-maintained equity structure, effective cost management, and an asset allocation strategy aligned with inventory buildup.

3.4-Ratio Analysis

They have been impacted by contractions in economic sector and country’s moderate economic growth has impacted on the business.

3.4.1 Liquidity and Efficiency

Liquidity ratios are financial ratios that measure a company’s ability to meet short term financial obligations with readily available assets. Liquidity ratios are important indicators of a company’s short term financial health and ability to handle financial challenges.

Ratio		2023	2024
Working Capital	Current Assets - Current Liabilities	6131857000	6687965000
Current Ratio	Current Ratio = Current Assets / Current Liabilities	2.65	2.99
Acid Test Ratio	Quick ratio = Quick assets/Current liabilities	1.29	0.79
Accounts Receivable Turnover	Net Annual Credit Sales/ Average Accounts Receivables	0.775	1.098
Accounts Receivable Turnover (Days)	Accounts Receivables Turnover Ratio/ 365	0.002	0.003
Inventory Turnover Ratio	Cost of goods sold /Average Inventory	2.036	1.393
Inventory Turnover Ratio (Days)	Inventory turnover ratio/365	0.005	0.003
Accounts Payable Turnover Ratio	Net Sales/Average Accounts Payable	10.006	10.137
Accounts Payable Turnover Ratio (Days)	Accounts Payable Turnover Ratio/ 365	0.027	0.028

Total Assets Turnover Ratio

Net Sales /Average Total Assets

1.017

0.840

Working capital represents company’s operational liquidity and short-term financial health. Or else working capital indicates how much capital or funds a company possess to cover its day-to- day operational expenses and short term obligations. Working capital is an important metric for assessing a company's ability to manage its short-term financial obligations, maintain its operations, and invest in growth opportunities. However, like the current ratio, the ideal level of working capital can vary by industry and company circumstances. But it doesn’t capture the entire financial health of the company. In Lanka Tiles PLC, working capital has improved in 2024.

The current ratio measures a company's ability to pay off its short-term liabilities using its short- term assets. A ratio higher than 1 indicates that the company has more current assets than current liabilities, suggesting a healthier liquidity position. So that, company will have excess assets that could be efficiently used elsewhere. This ratio should not be too high which might indicate excess cash within the business. In both 2023 and 2024, the current ratio is more than 1. Also this ratio has improved in 2024. This indicates a good position. However, this ratio can vary across industry.

Acid test ratio excludes current assets such as inventories and prepayments that can’t be easily converted into cash. So this ratio has slightly declined in 2024. The highest ratio is reported in 2023. Typically, a good acid-test ratio value is considered to be around 1 or higher, as this suggests that the company's liquid assets are sufficient to cover its current liabilities. But this ratio has been lower in year 2024. However, just like with the current ratio, the ideal acid-test ratio can vary by industry and company circumstances. It's important to analyze the acid-test ratio in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of a company's financial health and liquidity. However, it is more than zero every year and indicates good position.

Accounts receivable turnover is a financial metric that measures how efficiently company manages its credit and collect payments from its customers. This ratio indicates the number of times on average, a company’s debtors are collected and converted into cash within a year. A

higher accounts receivable turnover ratio is generally considered better because it implies that the company is collecting payments from its customers more quickly, which can improve its cash flow and liquidity. A lower turnover ratio might suggest that the company is facing difficulties in collecting payments or has lenient credit policies. So this ratio has improved from 2023 to 2024.

Also this can be calculated in terms of days. This measures liquidity of receivables or the number of days between the day of sales and the day receivables are collected. A shorter average collection period is preferred as it indicates that the company is collecting payments more quickly.

Inventory turnover ratio indicates how efficiently a company manage its inventory. So this shows how many times a company’s inventory is sold over a specific period. This ratio assists in effectively managing company’s inventory levels to meet demand and avoid overstocking. Higher ratio indicates company is selling its inventory more quickly, which can lead to better cash flow, reduced carrying costs, and potentially less risk of obsolete inventory. Also a lower inventory turnover ratio could indicate slower sales, overstocking, or inefficiencies in managing inventory. So this ratio has reduced in 2024.

This ratio also can be calculated in terms of days, which measures the liquidity of inventory or the average time in days’ company will turn its inventory into sales.

Accounts payable turnover ratio measures how efficiently a company manages its creditors. It indicates the number of times, that a company pay off its creditors within a specific period. A higher ratio indicates a company is paying off its creditors more quickly and suggest effective management of supplier relationships and favorable credit terms. So from 2023 to 2024, this ratio has improved in Lanka Tiles PLC.

This ratio also can be compared in terms of number of days.

Assets turnover ratio measures whether company is efficiently generating sales revenue from its total assets. This ratio is useful to analyze company’s operational efficiency and asset utilization. The value should be greater than 1 to indicate high efficiency rate. So that this ratio has been less than 1 in 2024 which implies that the average total assets are more than revenue. So that the company is less efficient in generating revenue.

3.4.2 Solvency

Solvency measures company’s ability to meet its long term financial obligations. It is crucial to evaluate a company’s overall financial health and its capacity to remain viable over the long term.

Ratio		2023	2024
Debt Ratio	Total Liabilities/ Total assets	0.306	0.263
Equity Ratio	Total Equity/ Total Assets	0.694	0.737
Times Interest Earned	EBIT/ Interest Expense	9.599	3.234

Debt ratio measures the portion of company’s assets contributed by creditors. The highest debt ratio has been recorded in 2023 and it has declined in 2024. This ratio has been between 26% to 31% which indicates a considerable gearing position in Lanka Tiles PLC.

Equity ratio measures the portion of company assets contributed by owners. So this has been 69% in 2023 and this has improved up to 73% in 2024 which is a good sign.

Times interest earned measures the ability of firm’s operations to protect long term creditors or how strong company is paying the interest. So this has been 9.59 in 2023 and decreased up to 3.23 times in 2024. The higher the value, the higher ability to pay interest out of the earnings generated.

3.4.3 Profitability

Profitability ratios are financial metrics that assess company’s ability to generate profits in terms of revenue, assets, equity or financial factors. These ratios provide insights regarding financial performance and its efficiency in generating profits.

Ratio		2023	2024
Gross Profit Margin	Gross Profit/ Net Sales *100	46.26%	45.11%
Profit Margin	Net Income/Net Sales *100	18.95%	22.56%
Return on Total Assets	Net Income/Total Assets	19.3%	18.2%
Return on Common Shareholder's Equity	Net Income/ Shareholder's Equity	27.8%	24.6%

Gross profit margin measures the percentage of revenue remains after deducting cost of sales. It indicates how well a company generates profits from core production or sales activities. Highest ratio is recorded in 2023. This indicates how well a company is generating profits from its core production or sales activities.

Net profit margin is the percentage of revenue that remains as net profit after all expenses including taxes, interest and non-operating items are deducted. The lowest ratio has been reported in 2023.

Return on assets ratio measures how efficiently a company uses its assets to generate profits. A high ROA indicates that company is more efficiently generating profits from its assets. So during the last few years, this ratio has been 19.3% in 2023 and has declined to 18.2% in 2024.

Return on common shareholder’s equity indicates whether the company is more efficient in generating profits for its shareholders in relative to the amount of equity invested. So that, this ratio provides insights to shareholders how effectively company is utilizing shareholder funds to generate returns. So the highest ratio is in 2023 which is 27.8%.

3.4.4 Market

Ratio		2023	2024
PE Ratio	Share price/EPS	7.44	9.64
Dividend yield	DPS/Share price	0.22	0.22
Dividend payout ratio	DPS/EPS	0.60	0.55

Price earnings ratio is often used by investors to measure stock values. Higher the ratio, more potential for growth. This ratio compares the company’s market price to earnings per share. The high value has been recorded in 2024.

Dividend yield identifies the return, in terms of cash dividends, on the current market price of the stock. The dividend yield in 2023 and 2024 are same. So this is often used by investors to assess the income potential of stock or income generating investment.

Dividend payout ratio measures the proportion of company’s earnings that are distributed to shareholders in forms of dividends. So this ratio has been improved in 2024.

Z-score bankruptcy model

Z =1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5

X1 = working capital/ total assets X2 = retaining earnings/ total assets

X3 = earnings before interest and taxes/ total assets X4 = market value of equity/total liabilities

X5 = sales/total assets

	2023	2024
X1	0.334	0.334
X2	0.314	0.322
X3	0.169	0.176
X4	2.11	2.23
X5	0.523	0.611
Z	3.187	3.381

Z > 2.99 – Safe zone

1.8 < Z < 2.99 – Grey zone Z < 1.8 – Distress zone

· For 2023 – Safe Zone

· For 2024 – Safe Zone

4. Conclusion

The financial analysis of Lanka Tiles PLC for 2023 and 2024 highlights the company's strategic responses to a challenging economic environment. Despite facing revenue declines, likely due to heightened competition and economic fluctuations, Lanka Tiles demonstrated resilience through a structured focus on cost efficiency, debt reduction, and maintaining a robust equity base. These efforts have allowed the company to maintain liquidity and reduce reliance on short-term debt, ultimately reinforcing its financial stability.

Horizontal analysis reflects that while revenue and profit margins were impacted, there was notable growth in total assets, largely through inventory increases, positioning the company to potentially capitalize on future demand. The reduction in non-current liabilities also underscores Lanka Tiles’ commitment to improving its financial health and long-term sustainability.

Vertical analysis provides insights into Lanka Tiles' balanced asset allocation and effective cost management. With equity now comprising a larger portion of the total financing mix, the company is less reliant on debt, a prudent strategy that aligns with its focus on enhancing liquidity. Cost of sales saw efficient control, preserving gross profit margins despite revenue challenges, indicative of sound operational management.

Trend analysis reveals some areas for improvement, especially in sales turnover and administrative costs, which saw increases relative to revenue. However, the consistent growth in equity and reduced short-term liabilities point towards an overall positive trajectory in financial solvency and resilience.

Liquidity indicators suggest a strong ability to meet short-term obligations, underscoring the company’s effective management of working capital. However, the decline in the acid test ratio highlights an increased reliance on inventory, suggesting room for optimizing inventory turnover to ensure quicker asset liquidity.

Efficiency ratios reflect both strengths and areas for improvement. The company has enhanced its accounts receivable turnover, indicating better cash flow management through timely

collections. However, slower inventory turnover points to the potential for improving sales cycles or inventory management to prevent capital from being tied up in unsold goods.

Solvency ratios indicate a prudent approach to financial health, with reductions in debt and increased equity demonstrating a strong capital structure. This shift reduces financial risk and highlights Lanka Tiles’ commitment to long-term stability, which enhances its appeal to investors and creditors.

Profitability ratios show a mixed outcome. While the net profit margin has improved, reflecting efficient cost management, there are slight declines in gross profit, ROA, and ROE, which may indicate the impact of a competitive market on pricing power and asset utilization. Nonetheless, the increase in net profit margin suggests the company has managed to navigate external challenges effectively, preserving shareholder value.

Lanka Tiles PLC's financial analysis for 2023 and 2024 highlights the business's flexibility and tenacity in a difficult economic environment. Lanka Tiles has maintained a healthy liquidity position and strengthened its financial stability by prudent cost control, debt reduction, and a deliberate focus on equity growth. Although there is room for improvement, especially in the areas of asset efficiency and inventory turnover, the company's strong capital structure and higher net profit margins show a consistent path toward long-term viability and value generation for shareholders. Lanka Tiles PLC is in a strong position to take advantage of upcoming market opportunities and improve its competitive position in the sector by maintaining a focus on operational effectiveness and sound financial management.

5. References

Lanka Tiles PLC. (2023). Annual Report 2023. Colombo, Sri Lanka: Lanka Tiles PLC

FINANCIAL STATEMENT ANALYSIS OF SINGER LANKA PLC (2016 – 2020)

2026-02-22T07:27:00.000-08:00

EXCECUTIVE SUMMARY

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INTRODUCTION TO SINGER LANKA PLC

Singer (Sri Lanka) PLC is a Sri Lankan holding company engaged in retailing and wholesale marketing home appliances and furniture. The company is also taking part in financial services and manufacturing businesses. The company is listed on the Colombo Stock Exchange since 1981 and in 2017, the Sri Lankan conglomerate, Hayleys acquired the majority of the shares. The Singer Corporation entered the Sri Lankan market in 1877 with the sale of sewing machines. The company was incorporated as a limited liability company in 1974 and became a quoted company in the Colombo Stock Exchange in 1981. In 1988, the company started manufacturing refrigerators through its subsidiary, Regnis Lanka. The first Singer Mega shop opened in 1998 and in 2000 the company acquired the local refrigerator manufacturing brand, Sisil. In 2011, the company entered into the sale of smartphone business and the 400th Singer Mega shop was opened in 2013. In 2017, Hayleys acquired a controlling stake of the company and thus became the parent company of Singer (Sri Lanka). The value of the acquisition stood at LKR 10.9 billion, making it one of the largest acquisitions for a listed company in Sri Lanka. The company owns the subsidiaries of Singer Finance (Lanka), Singer Industries (Ceylon), Regnis Lanka, Realty (Lanka) Ltd, Singer Digital Media (Pvt) Ltd, and Singer Business School (Pvt) Ltd. The company have chosen IFS AB's software as their ERP system. In 2020, Singer (Sri Lanka) emerged as the market-leading seller for Dell laptops in Sri Lanka. Due to the COVID-19 pandemic, increased incidences of working from home and learning from home arrangements, the demand for consumer electronics have risen and the company posted a robust LKR 16.7 billion sales in the second quarter of 2020.The company announced a 3-for-1 stock split in 2021. Also in 2021, the company won the People's Brand of the Year for the consecutive 15th time at the SLIM-Nielsen Awards. The company also reclaimed the award for Youth Choice Brand of the Year after three years.

FIANCIAL INCOME STATEMENTS OF SINGER LANKA PLC – 2015-2020

PROFIT & LOSS ACCOUNT
YEAR	2015	2016	2017	2018	2019	2020
Revenue	33,311,395,189	39,267,202,832	50,910,032,892	43,617,889,429	44,125,910,546	54,863,685,740
Cost of Sales	-23,531,268,883	-27,849,435,276	-36,728,240,797	-31,320,692,490	-31,128,174,786	-39,896,592,377
Direct Interest Cost		-
Gross Profit	9,780,126,306	11,417,767,556	14,181,792,095	12,297,196,939	12,997,735,760	14,967,093,363
Other Income	296,622,470	431,704,582	1,088,431,100	590,066,636	300,079,494	265,401,532
Selling and Administrative Expenses	-7,649,157,451	-9,069,711,231	-11,961,817,260	-10,233,588,367	-9,810,423,822	-10,528,254,382
Impairment Loss on Trade Receivables				-212,806,334	-630,876,357	-459,524,068
Other Expenses	-269,521,578
Operating Profit	2,158,069,747	2,779,760,907	3,308,405,935	2,440,868,874	2,856,515,075	4,244,716,445
Finance Cost	-1,094,741,462	-1,619,789,209	-2,494,325,151	-2,774,862,229	-3,323,287,328	-2,174,970,083
Finance Income	164,053,234	338,358,270	344,598,049	453,906,643	362,085,921	639,103,042
Net Finance Cost	-930,688,228	-1,281,430,939	-2,149,727,102	-2,320,955,586	-2,961,201,407	-1,535,867,041
Value Added Tax on Financial Services	-31,700,000	-47,800,000	-52,800,000	-31,200,000	-51,000,000	-79,800,000
Profit Before Tax	1,195,681,519	1,450,529,968	1,105,878,833	88,713,288	-155,686,332	2,629,049,404
Income Tax Expense	-335,976,573	-346,085,301	-106,855,559	51,837,151	168,425,711	-879,873,665
Profit for the Year	859,704,946	1,104,444,667	999,023,274	140,550,439	12,739,379	1,749,175,739

OTHER INFORMATIONS

	2016	2017	2018	2019	2020
Earnings per Share - Basic (Rs.)*	8.82	2.66	0.37	0.03	1.55
Dividends per Share (Rs.)	8.8	2.2	0.65	0.25	0.63
Market share price	126.2	40.2	25	17.4	20.2

FINACIAL POSITION OF SINGER LANKA PLC – 2015-2020

STATEMENT OF FINANCIAL POSITION
	2015	2016	2017	2018	2019	2020
ASSETS
Property, Plant & Equipment	2,600,437,050	3,022,805,042	3,082,597,562	3,498,021,139	3,651,860,201	3,578,265,826
Right-of-use Assets					3,986,189,712	3,863,148,390
Intangible Assets	200,296,513	213,157,147	207,145,304	201,000,888	196,451,084	222,618,380
Investment in Subsidiaries	992,241,596	2,455,179,989	2,925,222,314	2,900,872,703	2,968,023,473	2,968,023,473
Equity - Accounted Investees	48,000,000	-
Other Investments	616,303,000	929,110,000	929,110,000	616,202,652	17,020,000	24,948,407
Trade and Other Receivables	1,620,582,297	1,888,466,783	1,341,906,019	1,432,236,418	833,200,903	802,806,286
Deferred Tax Assets	124,492,574	147,270,286	69,642,532	264,757,033	773,456,037	832,572,959
Non-Current Assets	6,202,353,030	8,655,989,247	8,555,623,731	8,913,090,833	12,426,201,410	12,292,383,721
Inventories	6,677,026,859	7,793,495,049	10,741,281,063	12,135,241,818	14,273,238,762	16,150,896,747
Loans due from Related Parties	1,122,638,197	1,378,074,696	1,219,150,767	1,215,819,977	446,000,000	-
Income Tax Receivables		1,767,152	157,630,474	240,187,686	401,786,969	-
Trade and Other Receivables	8,325,781,111	9,886,667,043	12,150,611,598	12,860,387,063	12,424,217,535	12,965,213,666
Amounts due from Related Parties	234,256,922	74,782,845	185,396,027	3,310,666	32,055,166	38,813,530
Other Financial Assets				85,648,063	27,087,623
Deposits with Banks	-	-	-		-
Other Investments	-	-	-	312,090,000	600,090,000
Cash and Cash Equivalents	876,593,992	1,039,586,108	1,017,627,946	1,337,712,692	394,858,144	783,541,083
Current Assets	17,236,297,081	20,174,372,893	25,471,697,875	28,190,397,965	28,599,334,199	29,938,465,026
Total Assets	23,438,650,111	28,830,362,140	34,027,321,606	37,103,488,798	41,025,535,609	42,230,848,747
Equity
Stated Capital	626,048,050	626,048,050	626,048,050	626,048,050	626,048,050	626,048,050
Capital Reserves	857,580,019	1,065,542,144	847,555,412	1,158,333,041	1,142,409,257	1,170,907,941
Other Component of Equity						6,025,590
Statutory Reserve	-	-	-	-	-	-
Revenue Reserves	3,612,778,716	4,242,212,861	3,326,088,413	2,851,601,145	2,223,047,375	3,277,634,799
Total Equity Attributable to Owners of the Company	5,096,406,785	5,933,803,055	4,799,691,875	4,635,982,236	3,991,504,682	5,080,616,380
Non-Controlling Interests	-	-	-	-	-	-
Total Equity	5,096,406,785	5,933,803,055	4,799,691,875	4,635,982,236	3,991,504,682	5,080,616,380
Liabilities
Interest-Bearing Loans and Borrowings	6,250,000,000	6,000,000,000	2,532,149,832	7,373,929,275	6,154,765,222	3,000,000,000
Lease Liability - Non-current					3,855,725,216	3,786,997,415
Defined Benefit Obligation	457,181,699	476,754,466	574,009,152	630,757,966	636,683,474	654,639,183
Security Deposits	851,794,462	1,018,451,850	1,199,127,333	1,332,128,051	1,329,962,876	1,293,744,090
Other Financial Liabilities	-	-
Deferred Revenue				85,928,321	91,724,769	107,608,332
Other Non-Current Liabilities				143,126,349	81,590,330	142,413,444
Non-Current Liabilities	7,558,976,161	7,495,206,316	4,305,286,317	9,565,869,962	12,150,451,887	8,985,402,464
Trade and Other Payables	3,345,457,979	4,590,536,979	6,076,063,211	5,114,175,724	6,636,833,030	13,559,595,188
Deferred Revenue	318,459,902	438,989,246	246,289,945	182,534,759	167,724,663	183,469,610
Income Tax Payable	133,791,489	-	-			25,209,018
Dividends Payable	17,515,071	20,523,857	539,610,179	49,212,196	39,150,190	58,822,197
Amounts due to Related Parties - Trade	771,744,188	876,918,882	2,639,361,427	2,762,311,875	3,418,630,322	4,259,226,264
Amounts due to Related Parties - Non-Trade	125,239,131	119,738,131
Other Financial Liabilities	-	-	8,337,510		-
Lease Liability - Current					512,501,477	624,047,914
Interest-Bearing Loans and Borrowings	6,071,059,405	8,652,549,543	14,175,592,417	13,376,313,438	12,607,357,238	8,132,720,527
Bank Overdrafts		702,096,131	1,237,088,725	1,417,088,608	1,501,382,120	1,321,739,185
Current Liabilities	10,783,267,165	15,401,352,769	24,922,343,414	22,901,636,600	24,883,579,040	28,164,829,903
Total Liabilities	18,342,243,326	22,896,559,085	29,227,629,731	32,467,506,562	37,034,030,927	37,150,232,367
Total Equity and Liabilities	23,438,650,111	28,830,362,140	34,027,321,606	37,103,488,798	41,025,535,609	42,230,848,747

COMPARATIVE STATEMENTS

Comparative statements was calculated between comparing with previous year of the corresponding year. The percentage changes of the financial elements are given in the below tables.

Income statements – in %

	2016	2017	2018	2019	2020
Revenue	17.88	29.65	-14.32	1.16	24.33
Cost of Sales	18.35	31.88	-14.72	-0.61	28.17
Gross Profit	16.74	24.21	-13.29	5.70	15.15
Other Income	45.54	152.12	-45.79	-49.14	-11.56
Selling and Administrative Expenses	18.57	31.89	-14.45	-4.14	7.32
Impairment Loss on Trade Receivables				196.46	-27.16
Operating Profit	28.81	19.02	-26.22	17.03	48.60
Finance Cost	47.96	53.99	11.25	19.76	-34.55
Finance Income	106.25	1.84	31.72	-20.23	76.51
Net Finance Cost	37.69	67.76	7.97	27.59	-48.13
Value Added Tax on Financial Services	50.79	10.46	-40.91	63.46	56.47
Profit Before Tax	21.31	-23.76	-91.98	-275.49	-1788.68
Income Tax Expense	3.01	-69.12	-148.51	224.91	-622.41
Profit for the Year	28.47	-9.55	-85.93	-90.94	13630.46

Financial position – in %

Year	2016	2017	2018	2019	2020
ASSETS
Property, Plant & Equipment	16.24	1.98	13.48	4.40	-2.02
Right-of-use Assets					-3.09
Intangible Assets	6.42	-2.82	-2.97	-2.26	13.32
Investment in Subsidiaries	147.44	19.14	-0.83	2.31	0.00
Equity - Accounted Investees
Other Investments	50.76	0.00	-33.68	-97.24	46.58
Trade and Other Receivables	16.53	-28.94	6.73	-41.83	-3.65
Deferred Tax Assets	18.30	-52.71	280.17	192.14	7.64
Non-Current Assets	39.56	-1.16	4.18	39.42	-1.08
Inventories	16.72	37.82	12.98	17.62	13.16
Loans due from Related Parties	22.75	-11.53	-0.27	-63.32
Trade and Other Receivables	18.75	22.90	5.84	-3.39	4.35
Amounts due from Related Parties	-68.08	147.91	-98.21	868.24	21.08
Other Financial Assets				-68.37	-100.00
Other Investments				92.28	-100.00
Cash and Cash Equivalents	18.59	-2.11	31.45	-70.48	98.44
Current Assets	17.05	26.26	10.67	1.45	4.68
Total Assets	23.00	18.03	9.04	10.57	2.94
Equity
Stated Capital	0.00	0.00	0.00	0.00	0.00
Capital Reserves	24.25	-20.46	36.67	-1.37	2.49
Revenue Reserves	17.42	-21.60	-14.27	-22.04	47.44
Total Equity Attributable to Owners of the Company	16.43	-19.11	-3.41	-13.90	27.29
Total Equity	16.43	-19.11	-3.41	-13.90	27.29
Liabilities
Interest-Bearing Loans and Borrowings	-4.00	-57.80	191.21	-16.53	-51.26
Lease Liability - Non-current					-1.78
Defined Benefit Obligation	4.28	20.40	9.89	0.94	2.82
Security Deposits	19.57	17.74	11.09	-0.16	-2.72
Deferred Revenue				6.75	17.32
Other Non-Current Liabilities				-42.99	74.55
Non-Current Liabilities	-0.84	-42.56	122.19	27.02	-26.05
Trade and Other Payables	37.22	32.36	-15.83	29.77	104.31
Deferred Revenue	37.85	-43.90	-25.89	-8.11	9.39
Amounts due to Related Parties - Trade	13.63	200.98	4.66	23.76	24.59
Amounts due to Related Parties - Non-Trade	-4.39	-100.00
Other Financial Liabilities			-100.00
Lease Liability - Current					21.77
Interest-Bearing Loans and Borrowings	42.52	63.83	-5.64	-5.75	-35.49
Bank Overdrafts		76.20	14.55	5.95	-11.97
Current Liabilities	42.83	61.82	-8.11	8.65	13.19
Total Liabilities	24.83	27.65	11.08	14.06	0.31
Total Equity and Liabilities	23.00	18.03	9.04	10.57	2.94

TREND ANALYSIS

Trend analysis was conducted by using 2015 as the base year.

Trend of the financial elements for five years (2016 to 2020) are given below;

Income Statement

	2015	2016	2017	2018	2019	2020
Revenue	100	117.88	152.83	130.94	132.46	164.70
Cost of Sales	100	118.35	156.08	133.10	132.28	169.55
Gross Profit	100	116.74	145.01	125.74	132.90	153.04
Other Income	100	145.54	366.94	198.93	101.17	89.47
Selling and Administrative Expenses	100	118.57	156.38	133.79	128.25	137.64
Other Expenses	100	0.00	0.00	0.00	0.00	0.00
Operating Profit	100	128.81	153.30	113.10	132.36	196.69
Finance Cost	100	147.96	227.85	253.47	303.57	198.67
Finance Income	100	206.25	210.05	276.68	220.71	389.57
Net Finance Cost	100	137.69	230.98	249.38	318.17	165.02
Value Added Tax on Financial Services	100	150.79	166.56	98.42	160.88	251.74
Profit Before Tax	100	121.31	92.49	7.42	-13.02	219.88
Income Tax Expense	100	103.01	31.80	-15.43	-50.13	261.89
Profit for the Year	100	128.47	116.21	16.35	1.48	203.46

Trend Lines of the main operating elements

Financial Position

	2015	2016	2017	2018	2019	2020
ASSETS
Property, Plant & Equipment	100	116.24	118.54	134.52	140.43	137.60
Intangible Assets	100	106.42	103.42	100.35	98.08	111.14
Trade and Other Receivables	100	116.53	82.80	88.38	51.41	49.54
Non-Current Assets	100	139.56	137.94	143.70	200.35	198.19
Loans due from Related Parties	100	122.75	108.60	108.30	39.73
Trade and Other Receivables	100	118.75	145.94	154.46	149.23	155.72
Current Assets	100	117.05	147.78	163.55	165.93	173.69
Capital Reserves	100	124.25	98.83	135.07	133.21	136.54
Total Equity	100	116.43	94.18	90.97	78.32	99.69
Interest-Bearing Loans and Borrowings	100	96.00	40.51	117.98	98.48	48.00
Defined Benefit Obligation	100	104.28	125.55	137.97	139.26	143.19
Trade and Other Payables	100	137.22	181.62	152.87	198.38	405.31
Income Tax Payable	100			0.00	0.00	18.84
Amounts due to Related Parties - Trade	100	113.63	342.00	357.93	442.97	551.90
Interest-Bearing Loans and Borrowings	100	142.52	233.49	220.33	207.66	133.96
Current Liabilities	100	142.83	231.12	212.38	230.76	261.19
Total Equity and Liabilities	100	123.00	145.18	158.30	175.03	180.18

Trend lines of financial elements

COMMON SIZE STATEMENTS

Common size Income Statements

	2016	2017	2018	2019	2020
	Common size percentage
Revenue	100	100	100	100	100
Cost of Sales	70.92	72.14	71.81	70.54	72.72
Gross Profit	29.08	27.86	28.19	29.46	27.28
Other Income	1.1	2.14	1.35	0.68	0.48
Selling and Administrative Expenses	23.1	23.5	23.46	22.23	19.19
Impairment Loss on Trade Receivables	0	0	0.49	1.43	0.84
Operating Profit	7.08	6.5	5.6	6.47	7.74
Finance Cost	4.13	4.9	6.36	7.53	-3.96
Finance Income	0.86	0.68	1.04	0.82	1.16
Net Finance Cost	3.26	4.22	5.32	6.71	2.8
Value Added Tax on Financial Services	0.12	0.1	0.07	0.12	0.15
Profit Before Tax	3.69	2.17	0.2	0.35	4.79
Income Tax Expense	0.88	0.21	0.12	0.38	1.6
Profit for the Year	2.81	1.96	0.32	0.03	3.19

Common size Balance sheets

	Common size percentage
	2016	2017	2018	2019	2020
ASSETS
Property, Plant & Equipment	10.48	9.06	10.28	8.90	8.47
Right-of-use Assets	0.00	0.00	0.00	9.72	9.15
Intangible Assets	0.74	0.61	0.59	0.48	0.53
Investment in Subsidiaries	8.52	8.60	8.53	7.23	7.03
Other Investments	3.22	2.73	1.81	0.04	0.06
Trade and Other Receivables	6.55	3.94	4.21	2.03	1.90
Deferred Tax Assets	0.51	0.20	0.78	1.89	1.97
Non-Current Assets	30.02	25.14	26.19	30.29	29.11
Inventories	27.03	31.57	35.66	34.79	38.24
Loans due from Related Parties	4.78	3.58	3.57	1.09
Income Tax Receivables	0.01	0.46	0.71	0.98
Trade and Other Receivables	34.29	35.71	37.79	30.28	30.70
Amounts due from Related Parties	0.26	0.54	0.01	0.08	0.09
Other Investments			0.92	1.46	0.00
Cash and Cash Equivalents	3.61	2.99	3.93	0.96	1.86
Current Assets	69.98	74.86	82.85	69.71	70.89
Total Assets	100.00	100.00	100.00	100.00	100.00
Equity	0.00	0.00	0.00	0.00	0.00
Stated Capital	2.17	1.84	1.84	1.53	1.48
Capital Reserves	3.70	2.49	3.40	2.78	2.77
Revenue Reserves	14.71	9.77	8.38	5.42	7.76
Total Equity	20.58	14.11	13.62	9.73	12.03
Interest-Bearing Loans and Borrowings	20.81	7.44	21.67	15.00	7.10
Lease Liability - Non-current	0.00	0.00	0.00	9.40	8.97
Defined Benefit Obligation	1.65	1.69	1.85	1.55	1.55
Security Deposits	3.53	3.52	3.91	3.24	3.06
Other Financial Liabilities		0.00	0.00	0.00	0.00
Deferred Revenue	0.00	0.00	0.25	0.22	0.25
Other Non-Current Liabilities	0.00	0.00	0.42	0.20	0.34
Non-Current Liabilities	26.00	12.65	28.11	29.62	21.28
Trade and Other Payables	15.92	17.86	15.03	16.18	32.11
Deferred Revenue	1.52	0.72	0.54	0.41	0.43
Income Tax Payable			0.00	0.00	0.06
Dividends Payable	0.07	1.59	0.14	0.10	0.14
Amounts due to Related Parties - Trade	3.04	7.76	8.12	8.33	10.09
Other Financial Liabilities		0.02	0.00		0.00
Lease Liability - Current	0.00	0.00	0.00	1.25	1.48
Interest-Bearing Loans and Borrowings	30.01	41.66	39.31	30.73	19.26
Bank Overdrafts	2.44	3.64	4.16	3.66	3.13
Current Liabilities	53.42	73.24	67.30	60.65	66.69
Total Liabilities	79.42	85.89	95.42	90.27	87.97
Total Equity and Liabilities	100.00	100.00	100	100.00	100.00

RATIO ANALYSIS

1. Liquidity and Efficiency ratios

A liquidity ratio is a financial ratio that is used to assess a company's ability to meet its short-term debt obligations. The liquidity ratios for Singer Sri Lanka PLC from 2016 to 2020 are given below.

	2016	2017	2018	2019	2020
Liquidity and Efficiency
Current Ratio	1.31	1.02	1.23	1.15	1.06
Acid Ratio	0.80	0.59	0.70	0.58	0.49
Accounts Receivable Turnover	1.08	1.16	0.87	0.87	1.08
Total Asset Turnover	1.78	2.37	2.31	2.56	3.02
Days ' sales in inventory	102.14	106.75	141.42	167.36	147.76
Days ' sales uncollected	84.64	79.00	104.65	104.57	84.46

· Current Ratio: Over the period 2016-2020, the above ratio represents the company's ability to repay its liabilities with its assets. The current ratio is a measure of a company's financial health. It takes into account current assets and liabilities. It's a positive situation when current assets exceed current liabilities. According to the current ratio, it reveals that the financial health of the Singer Sri Lanka PLC is in a favorable over time. But the ideal condition (2:1) was not achieved in any of the five years and also compare to 2016 the remaining four years were not in the favorable condition.

· Acid Ratio: The acid-test ratio is a good indicator of whether a company's short-term assets are sufficient to cover its immediate liabilities. According to the calculations above, the short-term liabilities for the five years are less than 1 rupee of liability.

· Accounts Receivable Turnover: This ratio assesses a company's ability to convert receivables into cash on a yearly basis. In addition, assess how effectively a company utilizes its assets. In comparison to the previous years, 2017 had the highest accounts receivable turnover and 2018 and 2019 had the lowest.

· Total Asset Turnover: Total asset turnover is a metric that compares a company's sales or revenues to the value of its assets. The year 2020 has the highest total asset turnover rate, according to the calculations above. It means that for every 1 rupee spent, 3.02 rupees are spent. When compared to previous years, 2016 had the lowest asset turnover.

· Days ' sales in inventory (DSI): The number of days sales in inventory indicates how long it will take a company to convert its inventory into sales. According to the calculations above, Singer Lanka PLC shows fluctuations, with the best DSI in 2016 and the worst DSI in 2019.

· Days ' sales uncollected: This ratio represents the estimated time it will take to collect the receivable. Unusually high figures indicate a company-wide collection process that isn't up to par. According to the above calculations, 2019 has an unusually high figure for receivables collection, indicating an unfavorable situation.

2. Solvency Ratios

Solvency	2016	2017	2018	2019	2020
Debt ratio	0.79	0.86	0.88	0.90	0.88
Equity Ratio	0.21	0.14	0.12	0.10	0.12

· Debt ratio: Creditors contribute a portion of a company's assets, as measured by the Debt ratio. The year 2019 has the highest debt ratio, according to the calculations above. However, Singer Sri Lanka PLC has had a high debt ratio over the years.

· Equity Ratio: The equity ratio determines how much of a company's assets are contributed by its shareholders. The year 2017 has the highest equity ratio, according to the calculations above. From 2017 to 2020, we can see a general decline with some fluctuations, indicating that investors are hesitant to invest in the company.

3. Profitability Ratios

Profitability	2016	2017	2018	2019	2020
Net Profit Margin %	2.81	1.96	0.32	0.03	3.19
Gross Margin %	29.08	27.86	28.19	29.46	27.28
Return on Assets %	4.23	3.18	0.40	0.03	4.20
Earnings per share	6.87	8.82	2.66	0.37	0.03
Return on Equity %	20.03	18.62	2.98	0.30	38.56

· Gross Margin: This ratio measures how profitable a company's inventory or merchandise is when sold. The highest gross margin is in the year 2019, and the lowest gross margin is in the year 2020.

· Net Profit Margin: This ratio assesses a company's ability to generate a profit from sales. The year 2020 has the highest profit margin, according to the calculations above. The net profit margin has decreased from 2017 to 2019, which is unfavorable condition.

· Return on Assets: The above ratio represents the company's overall profitability. The highest return on total assets ratio in 2016 belongs to Singer Sri Lanka PLC. In 2019, the return on total assets ratio was the lowest. The return on total assets ratio has decreased from 2017 to 2019. The above figures indicate that the company's overall profitability has been fluctuating over time.

· Return on Equity: The ratio indicates how effectively the company used the owners' money to generate revenue. In 2020, the return on common shareholders' equity increased, indicating that the company's management has been successful in maximizing the owners' investment. From 2017 to 2019, the return on common shareholders' equity has decreased, implying that the company's management has been unfavorable to the owners' investment.

· Earnings per share: The above figure shows how much income was earned for each outstanding share of common stock. The highest basic earnings per share were in 2017, while the lowest basic earnings per share were in 2020.

4. Market Ratios

Market Ratios	2016	2017	2018	2019	2020
Price Earnings Ratio	14.31	15.11	67.57	580.00	13.03
Dividend Yield %	6.97	5.47	2.60	1.44	3.12

· Price Earnings Ratio: The year 2019 has the highest price-to-earnings ratio, according to the calculations above. The PE ratio has risen from 2017 to 2019, indicating that the company has more room to grow than in previous years.

· Dividend Yield: According to the calculations above, the year 2016 has the highest dividend yield and appears to be in good shape.

ALTMAN Z-SCORE ANALYIS

The Altman Z-score is the result of a credit-strength test that determines the likelihood of a publicly traded manufacturing company going bankrupt. The Altman Z-score is calculated using data from a company's annual report and is based on five financial ratios. Profitability, leverage, liquidity, solvency, and activity are used to determine whether a company is likely to go bankrupt.

Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

Where:

A = Working Capital/Total Assets

B = Retained Earnings/Total Assets

C = Earnings Before Interest & Tax/Total Assets

D = Market Value of Equity/Total Liabilities

E = Sales/Total Assets

Zone of Discrimination

· Z > 2.9 – “Safe” Zone

· 1.23 < Z 2.9 – “Grey” Zone

· Z < 1.23 – “Distress” Zone

Z Score Analyis of Singer Sri Lank PLC
	2016	2017	2018	2019	2020
Working Capital	4,773,020,124	549,354,461	5,288,761,365	3,715,755,159	1,773,635,123
Total Assets	28,830,362,140	34,027,321,606	37,103,488,798	41,025,535,609	42,230,848,747
T1	0.16555533	0.016144511	0.14254081	0.090571765	0.041998567
Retained Earning	4,242,212,861	3,326,088,413	2,851,601,145	2,223,047,375	3,277,634,799
Total Assets	28,830,362,140	34,027,321,606	37,103,488,798	41,025,535,609	42,230,848,747
T2	0.147143933	0.097747582	0.076855337	0.054186919	0.077612335
Earning Before Tax	1,450,529,968	1,105,878,833	88,713,288	155,686,332	2,629,049,404
Total Assets	28,830,362,140	34,027,321,606	37,103,488,798	41,025,535,609	42,230,848,747
T3	0.050312582	0.032499732	0.002390969	0.003794864	0.06225424
Market Value of Equity	5,933,803,055	4,799,691,875	4,635,982,236	3,991,504,682	5,080,616,380
Total Liabilities	22,896,559,085	29,227,629,731	32,467,506,562	37,034,030,927	37,150,232,367
T4	0.259156978	0.164217623	0.142788367	0.107779374	0.13675867
Sales	39,267,202,832	50,910,032,892	43,617,889,429	44,125,910,546	54,863,685,740
Total Assets	28,830,362,140	34,027,321,606	37,103,488,798	41,025,535,609	42,230,848,747
T5	1.362008657	1.496151636	1.175573803	1.075571833	1.299137653
Z Score	2.088202268	1.858151353	1.547783465	1.337310314	1.745687398

According to the Z Scores derived from Singer Sri Lanka PLC Financials, in the years from 2016 to 2020 the company is in the Grey zone. The whole world economy collapsed due to ongoing COVID19 pandemic and also the Easter Sunday attack in 2019 have a major impact in the marginal growth of whole industries mainly declining the demand of most luxury goods. These unfavorable situations in the years of 2019 and 2020 have led Singer Lanka PLC into grey zone.

CONCLUSION

Revenue has increased in the last 5 years, according to Singer Sri Lanka PLC’s annual reports. When comparing current ratios from 2016 to 2020, Singer Sri Lanka PLC has a favorable financial position. Singer Sri Lanka PLC has a poor collection process, a bad credit policy, or no credit policy at all, according to accounts receivable turnover. Finally, Sri Lanka PLC maintains a stable position within the industry, but they must reconsider their current credit policy in order to improve their poor collection process.

References

https://finacialsrilanka.blogspot.com/2018/

https://www.cse.lk/pages/company-profile/company-profile.component.html?symbol=SINS.N0000

https://en.wikipedia.org/wiki/Singer_(Sri_Lanka)

Financial Statement Analysis of Royal Ceramics Lanka PLC

2026-02-22T06:51:00.000-08:00

https://drive.google.com/file/d/18jw9wwNHIju-70Cy_u1xWD_av31rsxO7/view?usp=sharing

Kelani Cables PLC (KCL)

2026-02-20T02:06:06.225-08:00

Introduction

Financial statement analysis is the process of assessing a firm’s financial statements to ascertain its effectiveness & appropriateness. This is frequently used to determine whether a company is solid, financially sound, liquid, or profitable enough to justify a financial investment.

This report has analyzed five years of annual report data of Kelani Cables PLC (KCL) which mainly discuss about the financial ratios under following topics.

1. Liquidity ratios

2. Efficiency Ratios

3. Profitability Ratios

4. Solvency Ratios

5. Market Ratios

In addition to that, report has further explained the trend analysis of the company.

Background of the Company

“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

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, 2021;22)

Ratio Analysis

A ratio is a mathematical presentation of the relationship among two variables in a set of financial statements.

Liquidity & Efficiency Ratios

A liquidity ratio is used to assess company's capacity to settle its short-term debt obligations. This helps in figuring out if a business can use its liquid or current assets to pay its current liabilities. A company's liquidity ratio computation complies with the two key elements. Those are Current Ratio & Quick Ratio.

Efficiency ratios are used to assess how well a business can utilize its assets and capital to generate revenue. The more efficiently a company is managed and operated, the more likely it is to generate maximum profitability for its owners and shareholders over the long term.

Liquidity Ratios

Liquidity Ratios	2022	2021	2020	2019	2018
Current ratio	2.19	1.82	1.91	1.89	2.23
Quick ratio	1.65	1.23	1.36	1.27	1.48
Working Capital	5,205,143,755	3,113,721,074	2,914,996,864	2,640,597,002	2,752,201,550

Current Ratio

This measures the short-term solvency of the company. It indicates if a company has enough money to cover its debts over the course of the next 12 months. The efficiency of a company's operational cycle or its capacity to convert its product into cash can both be derived from the current ratio. In general, a ratio between 1 & 3 is satisfactory.

Quick Ratio

This ratio illustrates the relationship between quick assets and current liabilities and the capacity of the company to settle its short-term debt.

Working Capital

Working capital is the difference between the current asset and current liabilities. This amount is used to run the business on a daily basis.

Looking at KCL's numbers reveals that both current & quick ratios have declined from 2018 to 2021, which is not encouraging for the business. However, in 2022, the current and quick ratios rose to 2.19 and 1.65, respectively, which is a positive sign. Working capital has also increased throughout the period in the company. This may be advantageous for the company if it treats it like a reserve account, otherwise it is unfavorable because of less utilization of the current asset.

Efficiency Ratios

Efficiency Ratios	2022	2021	2020	2019	2018
Inventory Turnover	5.19	4.21	4.14	4.16	4.20
Inventory Turnover Days	70.3	86.8	88.1	87.7	86.8
Debtors Turnover	6.00	3.27	3.58	4.11	3.75
Debtors Turnover Days	60.8	111.7	102.0	88.8	97.4
Creditors Turnover	4.78	5.18	7.69	7.29	5.21
Creditors Turnover Days	76.4	70.4	47.5	50.1	70.1
Working Capital Turnover	2.90	3.10	3.01	3.22	2.90
Assets Turnover	1.50	1.21	1.24	1.31	1.36

Inventory Turnover

Inventory turnover is an efficiency ratio which measures how often a company can sell its average inventory. Generally higher the ratio the better as it usually indicates good sales performance. A lower ratio may indicate weak sales or declining market demand.

Inventory Turnover Days

This ratio shows the average number of days it takes a business to convert its inventory into sales. Generally, lower the ratio the better.

When considering the values of the KCL, both ratios have fluctuated slightly between 2018 and 2021. However, in 2022, inventory turnover has increased to 5.19 and inventory turnover days has decreased to 70.3 which indicates good sales performance of the company.

Debtors Turnover

Debtors turnover also known as receivable turnover measures how efficiently a company collects its average accounts receivable. A high ratio is preferred since it shows how frequently and effectively the business collects accounts receivable.

Debtors Turnover Days

This shows the average number of days it takes a customer to pay a business for sales made on credit. Generally, lower the ratio the better.

During 2018 to 2021, debtors turnover has marginally changed between 3.27 and 4.11, while a significant increase can be seen in 2022. On the other hand, debtors turnover days has increased until 2021 and a drastic drop can be seen in 2022, which is 60.8. This indicates that the company has a solid client base that can make timely payments for their debts. Additionally, this may indicate that the company follows a conservative credit policy.

Creditors Turnover

Payable turnover or creditors turnover reveals how efficient a company is at paying its suppliers and short-term debts. A high ratio shows that suppliers are being promptly paid for purchases made on credit.

Creditors Turnover Days

This refers to the average number of days it takes a company to pay their suppliers. It shows how effectively a business is managing its cash outflow. This ratio shouldn't be excessively high or low. If it is really high, it indicates that the business is taking a long time to pay off its debts, which could harm its relationships with suppliers. If it is really low, it indicates that the business is repaying in a hurry, which reduces the amount of cash available for other investments.

According to the KCL data, creditors turnover has increased until 2020 and started declining from there onwards. Meanwhile creditors turnover days is gradually increasing since 2020, from 47.5 to 76.4. This reflects that the business is taking a long time to pay off its debts. On the other hand, they might be using a strategy of investing the available cash on other projects.

Working Capital Turnover

This ratio evaluates the efficiency of using working capital of a company to promote its sales and growth. Generally higher the ratio the better.

KCL managed to maintain the ratio between 2.9 to 3.22 throughout the period with slight fluctuations. However, it has declined from 3.1 to 2.9 on last year, therefore it is required to pay attention on improving the ratio by efficiently using the short term assets and liabilities to support company’s sales.

Assets Turnover

The asset turnover ratio evaluates how effectively a business utilizes its assets in order to generate income or sales. A higher ratio is favorable.

During 2018 to 2021, assets turnover has marginally reduced from 1.36 to 1.21, while a significant increase can be seen in 2022. However, similar to working capital turnover, it is required to pay attention on improving the ratio by efficiently using the assets to generate revenue.

Profitability Ratios

Profitability ratios are financial indicators that analysts and investors use to assess a company's capacity to generate income or profit in relation to sales, balance sheet assets, operating expenses, and shareholders' equity over a given time period.

Profitability Ratios	2022	2021	2020	2019	2018
Gross Profit Margin	21.55%	13.30%	14.99%	13.72%	12.59%
Net Profit Margin	14.11%	6.43%	4.05%	2.65%	2.46%
Return on Assets	21.22%	7.81%	5.03%	3.47%	3.34%
Return on Equity	37.66%	14.46%	9.30%	6.10%	5.50%
Return on Investment	37.80%	17.68%	14.07%	11.70%	8.34%

Gross Profit Margin

Gross profit as a percentage of net sales is displayed by the gross profit margin ratio. Gross profit margin explains the sales that cover operating expenses and profit after considering the cost of sales.

According to the KCL data, gross profit margin has gradually climbed up until 2020; later, it has dropped in 2021 and re picked up in 2022. This is a positive sign for the company.

Net Profit Margin

Net profit as a percentage of net sales is displayed by the net profit margin ratio. Net profit margin describes a company's ability to generate net income from sales revenue.

During the last five years KCL shows a stable growth in net profit margin from 2.46% to 14.11%. The higher the ratio, the better the organization's market position. KCL demonstrates the success of the business operation as the profit margin increases.

Return on Assets

Return on assets is a financial statistic that measures how profitable a firm is in relation to its total assets.

KCL's return on asset has steadily increased from 3.34% to 21.22% during the last five years.

Return on Equity

This ratio assesses how effectively the company used the owners' investment to generate revenue. A company that can sustain and grow its ROE over time is likely to be good at creating shareholder value because it understands how to reinvest its earnings sensibly to improve productivity and profits.

KCL's return on equity also has steadily increased from 5.50% to 37.66% during the last five years, meaning its good at creating shareholder value.

Return on Investment

Return on investment is a ratio that calculates the benefit an investor receives in comparison to the cost of their investment.

During the period of last five years, KCL’s ROI has gradually increased up to 37.8%, which demonstrates the success in its performance.

Solvency Ratios

Solvency ratios are performance indicators that allow us to assess the financial health of a business. It is frequently used by potential business lenders to evaluate a company's capacity to pay its long-term debt.

Solvency Ratios	2022	2021	2020	2019	2018
Debt to Equity Ratio	71.43%	86.16%	84.09%	85.33%	66.93%
Total Debt Ratio	41.67%	46.28%	45.68%	46.04%	40.18%
Interest Cover	30.66	7.71	3.89	3.48	5.24

Debt to Equity Ratio

The debt-to-equity ratio is a leverage measure that calculates the weight of overall debt and financial liabilities against total shareholder equity. A high debt-to-equity ratio can be favorable as it indicates that a company can easily service its debt obligations and is leveraging to boost equity returns.

When considering the values of the KCL, debt-to-equity ratio has fluctuated throughout the period with an upward tendency.

Total Debt Ratio

A financial ratio that measures a company's level of leverage is known as debt ratio. This ratio demonstrates how much of an organization's assets are covered by its liabilities. The ratio greater than 1 means it has more liabilities than assets.

According to the KCL data, total debt ratio also has fluctuated throughout the period. Highest recorded in 2021 with an overall upward trend. However, it has reduced to 41.67% in 2022.

Interest Cover

The interest coverage ratio, also known as the times interest earned ratio, measures how many times the company can cover its interest expenses with its annual revenue. A higher ratio will be better for the organization.

KCL’s interest coverage ratio has gradually increased until 2021 and drastically picked up in 2022 due to the drastic improvement in earnings.

Market Ratios

Market ratios can be used to assess the financial health of publicly traded companies. This can be used to identify equities that may be overvalued, undervalued, or fairly valued. In addition to that, this also provides management with a sense of how investors see the performance and prospects of a company.

Market Ratios	2022	2021	2020	2019	2018
Price-Earning Ratio	2.97	3.92	3.19	6.54	10.30
Dividend Yield	1.55%	4.03%	6.73%	5.19%	3.76%

Price-Earning Ratio

Price-Earning ratio is one of the most popular valuation metrics of stocks. It indicates whether a stock is costly or cheaper at its present market price.

KCL’s price-earning ratio has considerably decreased from 10.3 to 2.97 throughout the period. A low price-earning ratio can imply that a business is currently undervalued or that it is performing extremely well in comparison to its historical patterns.

Dividend Yield

This ratio illustrates how much a business pays out in dividends each year in comparison to the value of its stock.

According to the KCL data, the dividend yield has increased until 2020, and thereafter it has gradually decreased. Yield-seeking investors will look for companies with high dividend yields, but it is necessary to go deeper to understand the factors that led to the high yield.

Trend Analysis

Trend analysis is a method for examining and forecasting movements of an item based on current and past data. Following illustrates the trend analysis of KCL.

KCL	2022	2021	2020	2019	2018	2017

Revenue	212%	135%	123%	119%	112%	100%
Cost of Goods Sold	198%	140%	124%	122%	117%	100%
Gross Profit	287%	113%	116%	103%	89%	100%
Finance Cost	275%	354%	481%	393%	238%	100%
Earning Before Interest and Tax	502%	160%	108%	84%	61%	100%
Profit Before Tax	524%	150%	86%	65%	53%	100%
Profit After Tax	566%	165%	94%	60%	52%	100%

Equity
Stated Capital	100%	100%	100%	100%	100%	100%
Capital Reserves	201%	201%	136%	136%	136%	100%
General Reserves	100%	100%	100%	100%	100%	100%
Retained Earings	215%	135%	115%	104%	105%	100%
Equity attributable to owners	193%	133%	114%	106%	106%	100%

Non-Current Assets
Property, plant and equipment	174%	152%	124%	132%	129%	100%
Intangible assets	-	-	-	-	-	-
Investment property	272%	256%	121%	116%	110%	100%
Right-of-use assets	-	-	-	-	-	-
Investment in equity accounted investee	332%	332%	332%	332%	141%	100%
	204%	185%	127%	131%	124%	100%

Current Assets
Inventories	142%	135%	106%	112%	102%	100%
Trade and other receivables	98%	141%	139%	94%	103%	100%
Amount due from related companies	1307%	1%	24%	65%	202%	100%
Value added tax recoverable	303%	301%	261%	233%	160%	100%
Deposits and prepayments	221%	147%	146%	142%	14%	100%
Investment in FDs	814%	-	-	-	-	100%
Cash and cash equivalents	507%	185%	153%	233%	135%	100%
	203%	146%	129%	119%	106%	100%
Total Assets	203%	152%	129%	121%	109%	100%

Non-Current Liabilities
Employee benefit	147%	193%	141%	137%	114%	100%
Deferred taxation	78%	70%	22%	98%	212%	100%
Interest bearing borrowings	3052%	71%	64%	100%	142%	100%
	272%	138%	90%	120%	154%	100%

Current Liabilities
Trade and other payables	224%	146%	95%	50%	100%	100%
Amount due to related companies	270%	317%	234%	256%	148%	100%
Current taxation	259%	120%	113%	132%	114%	100%
Unclaimed dividends	111%	155%	135%	121%	109%	100%
Interest bearing borrowings	658%	3348%	4216%	4647%	962%	100%
Bank overdrafts	13%	44%	82%	167%	39%	100%
	216%	187%	158%	146%	111%	100%
Total Liabilities	220%	183%	153%	144%	114%	100%

Summary

The COVID-19 global pandemic caused many industry disruptions worldwide, together with a volatile local economic environment, which led to an extraordinary period that Kelani Cables PLC had to recover from. Despite the fact that the economy has continued to decline into the current fiscal year, the company has rapidly and effectively adjusted and displayed strong performance in FY2021/22.

Price increases throughout the product line, along with a shift from credit to cash sales, amounted to a 57% increase in income to Rs. 15.1 billion, up from Rs. 9.7 billion in the previous financial year.

Additionally, the Company was able to benefit from a significant exchange gain of Rs 191.8Mn due to its substantial holding of US Dollar denominated deposits, which helped to drive a 200% increase in operating profits to Rs 2.4Bn from Rs 819.6Mn in the previous financial year.

It can be seen that, by taking these strategical decisions and given reasons, KCL has performed well in 2022 compared to previous years.