ELPITIYA PLANTATIONS PLC

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 TH SEPTEMBER 2010

 ELPITIYA PLANTATIONS PLC

BALANCE SHEET

Unaudited Unaudited Audited

As at 30.09.2010 30.09.2009 31.03.2010
Assets Rs.'000 Rs.'000 Rs.'000
Non Current Assets
Leasehold Property 182,820 188,086 185,453
Immovable estate assets on finance lease(other than leasehold property) 210,406 225,954 218,180
Tangible assets other than immature/mature plantations 461,633 409,689 458,614
Immature/mature plantations 2,021,460 1,880,689 1,971,093
Long Term Investment - (Unquoted) 86,843 68,619 77,276
2,963,163 2,773,037 2,910,616
Current Assets
Inventories 254,487 190,969 190,037
Trade and other receivables 197,833 98,690 140,073
Amount due from related companies 66,631 65,873 54,933
ESC Recoverable 16,006 10,753 18,041
Cash and bank balances 65,133 61,948 371,019
600,089 428,233 774,102
TOTAL ASSETS 3,563,252 3,201,270 3,684,718

EQUITY AND LIABILITIES

Capital and Reserves
Stated capital 694,236 350,000 694,236
Accumulated Profits 417,614 285,473 323,761
Total Equity 1,111,850 635,473 1,017,997

Non current Liabilities

Interest bearing loans & borrowings 907,984 499,838 953,672
Retirement benefit obligations 441,063 340,904 448,410
Defferred income 221,680 155,364 186,517
Net liability to the lessor payable after one year 188,759 191,398 190,104
1,759,486 1,187,504 1,778,703

Current Liabilities
Interest bearing loans & borrowings ( Including Overdraft) 355,940 574,632 312,805
Net liability to the lessor payable within one year 2,639 2,538 2,588
Trade and other payables 308,141 404,454 246,761
Amounts due to related companies 25,196 396,669 325,865
691,917 1,378,293 888,019
TOTAL EQUITY AND LIABILITIES 3,563,252 3,201,270 3,684,718

Net Assets per share (Rs.) 30.52 25.46 27.94

It is certified that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No .07 of 2007.

Ruwan Nissanka
Manager - Finance

Signed on behalf of the Board of Directors of Elpitiya Plantations PLC

J.M.S.Brito Rohan M. Fernando

Chairman Managing Director
15.11.2010 15.11.2010
 ELPITIYA PLANTATIONS PLC

INCOME STATEMENT

Unaudited Unaudited Audited

Change Change
Period Ended 3 months 6 months Year ended
30.09.2010 30.09.2009 % 30.09.2010 30.09.2009 % 31.03.2010
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

Revenue 598,410 525,206 14 1,202,446 956,258 26 2,215,126

Cost of sales (495,498) (467,846) 6 (991,490) (849,035) 17 (1,973,915)

Gross Profit 102,912 57,360 79 210,956 107,223 97 241,211

Other income and gains 24,158 21,342 13 43,423 34,680 25 81,098

Administration expenses (33,161) (21,710) 53 (56,097) (41,949) 34 (143,037)

Management fee & workers profit share (7,923) 489 (1,719) (16,115) (6,511) 148 (10,202)

Finance cost (39,535) (51,337) (23) (83,873) (89,721) (7) (144,075)

Share of profit/(loss) of joint ventures 9,741 12,444 (22) 23,775 21,807 9 38,822

Provision for Inter Company Receivebles (8,500) - 100 (10,000) - 100 -

Profit/(Loss) before taxation 47,691 18,588 157 112,069 25,530 339 63,817
Income tax expenses - - - - -
Profit/(Loss) for the period 47,691 18,588 157 112,069 25,530 339 63,817

Earnings per share (Rs.) 1.31 0.74 3.08 1.02 2.46

Segmental Revenue Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

Tea 437,906 430,550 7,356 923,893 783,691 140,201 1,766,739
Rubber 111,859 45,046 66,813 166,371 67,359 99,012 254,684
Oil Palm & Others 48,538 49,455 (918) 111,878 104,844 7,033 192,966
Coconut 108 155 (47) 305 363 (59) 737
598,410 525,206 73,205 1,202,446 956,258 246,188 2,215,126

STATEMENT OF CHANGES IN EQUITY

Stated Accumulated Total

Capital Profit/(Loss)
Rs.'000 Rs.'000 Rs.'000
Balance as at 01.04.2009 350,000 259,944 609,944

Rights Shares Issued during the year 344,236 - 344,236

( 11,474,537 Shares @ 30/= per Share )

Net Profit for the period - 63,817 63,817

Balance as at 31.03.2010 694,236 323,761 1,017,997

Balance as at 01.04.2010 694,236 323,761 1,017,997

Net Profit for the period - 112,069 112,069

Dividends - (18,217) (18,217)

Balance as at 30.09.2010 694,236 417,614 1,111,850

 ELPITIYA PLANTATIONS PLC

CASH FLOW STATEMENT

Unaudited Unaudited Audited

Period Ended 6 months 6 months Year Ended
30.09.2010 30.09.2009 31.03.2010
Rs.'000 Rs.'000 Rs.'000
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit/(Loss) before taxation 112,069 25,530 63,817

ADJUSTMENTS FOR
Depreciation/Amortization 50,497 42,887 88,215
Provision for defined benefit plans 15,451 28,790 172,695
Share of profit/( loss ) of joint ventures (23,775) (21,807) (38,822)
Deferred income from sublease (4,873) (5,403) (11,006)
Amortisation of Grants - - (7,540)
Provision for doubtful Debtors 10,000 - 7,577
Finance cost 83,873 89,721 144,075
131,175 134,187 355,196
Operating profit before working capital changes 243,244 159,717 419,012

(Increase) / Decrease in Trade and other Receivables (54,721) (6,042) (56,460)

(Increase) / Decrease in amounts due from Related companies (21,698) (10,068) (4,933)
(Increase) / Decrease in inventories (64,450) (90,879) (89,947)
Increase / (Decrease) in trade and other payables 71,893 78,281 (77,771)
Increase / (Decrease) in amount due to Related companies (300,669) (21,669) (92,473)
(369,645) (50,377) (321,583)
Cash generated from operations (126,401) 109,340 97,429

Cash received as sub lease of land 1,206 3,637 13,331

Finance cost paid (77,476) (83,273) (119,830)
Defined benefit plan cost paid (22,798) (14,614) (51,013)
Grants received 38,830 7,954 42,047
Dividend Paid (18,217) - -
ESC paid (1,004) (833) (3,817)
(79,458) (87,129) (119,283)
Net Cash from Operating Activities (205,859) 22,211 (21,854)

CASH FLOWS FROM INVESTING ACTIVITIES

Field Development Expenditure (70,883) (79,263) (185,233)
Dividend Received 14,208 - 8,358
Right Issue on Ordinary Shares - - 344,236
Purchase of property, plant and Equipment (22,595) (15,011) (83,291)
(79,269) (94,274) 84,070
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Loans 103,089 224,552 860,150

Settlement of Loans (240,862) (132,892) (399,877)
Payment of Government lease rentals (18,846) (12,000) (27,383)
Lease rental paid (6,397) (6,448) (10,443)
Net cash flow from financing activities (163,016) 73,212 422,447
Net Increase/Decrease in Cash & Cash Equivalents (448,144) 1,150 484,663
A. Cash & Cash Equivalents at the beginning of the period / Year 332,626 (152,036) (152,036)
B. Cash & Cash Equivalents at the end of the period / Year (115,518) (150,886) 332,626

NOTE A
Cash & Cash Equivalents at the beginning of the period/year
Cash & Bank 371,019 20,607 20,607
Overdraft (38,393) (172,644) (172,644)
332,626 (152,036) (152,036)

NOTE B
Cash & Cash Equivalents at the end of the period/year
Cash & Bank 65,133 61,947 371,019
Overdraft (180,652) (212,833) (38,393)
(115,518) (150,886) 332,626

Notes:
1) Stated Capital of Elpitiya Plantations PLC amounts to Rs.694,236,120 represented by 36,433,215 shares.

2) The Company is in the process of converting Rs.40 Mn. in amounts due from Elpitiya Lifestyle Solutions (Pvt.) Ltd. to a term loan of 05 years with a grace period
of 03 years to repay the capital.

3) The Company has followed the same Accounting Policies and methods of computation as disclosed in the audited accounts for the year ended 31st March 2010

4) There have been no other events subsequent to the interim periods, which require disclosure in the provisional financial statements.

5) There has not been a significant change in the nature of the contingent liabilities, which were disclosed in the Annual Report for the year ended 31st March 2010.

6) All liabilities to Management fee and other similar expenditures have been provided

7) Figures in brackets indicate deductions.

 ELPITIYA PLANTATIONS PLC

SHAREHOLDERS INFORMATION

TOP 20 SHAREHOLDERS AS AT 30.09.2010

Name of the Shareholder Shareholder ID Share Holding %

Aitken Spence Plantation Managements Limited 8842 & 23652 24,394,877 66.958
Secretary To The Treasury 16360 7,806,546 21.427
S.N.C.W.M.B.C. Kandegedara 21003 565,600 1.552
Seylan Bank PLC/MR.S.N.C.W.M.B.Chandrasekera 27435 154,600 0.424
Tranz Dominion L.L.C. 23675 150,000 0.412
K.S.D. Senaweera 6796 70,500 0.194
First Capital Markets LTD/ MR. E.P.I.Fernando 25617 69,000 0.189
C.T. Rodrigo 26779 50,000 0.137
A.K.Kumarasena 440 50,000 0.137
P.A. Dayananda 20273 50,000 0.137
S.N.M. Semasinghe 26677 41,600 0.114
K. Perampalam 21957 35,300 0.097
E.P.I. Fernando 26018 28,300 0.078
M.D. Niroshini 26661 25,600 0.070
K.D.C. Somalatha 23623 25,000 0.069
P.L.A. Waniganayake 26889 23,600 0.065
I.H. Jafferjee 933 20,300 0.056
G. Rajendren 21802 20,000 0.055
M.J.C. Amarasuriya 26 20,000 0.055
Other Share Holders 2,832,392 7.774

36,433,215 100.00
Total No. of Shares

PUBLIC SHAREHOLDING AS AT 30.09.2010

Shareholder No. of Shares %
Aitken Spence Plantation Managements Ltd. 24,394,877 66.96
Secretary to the Treasury 7,806,546 21.43
Public Holding 4,231,792 11.61
TOTAL 36,433,215 100.00

DIRECTORS' SHAREHOLDINGS
None of the Directors hold shares in the Company.

MARKET PRICES OF SHARES RECORDED DURING THE PERIOD ENDED

30.09.2010 30.09.2009
Rs. Rs.
Highest price 55.00 63.00
Lowest price 34.00 52.75
Last traded price 48.90 56.25

COMPANY REGISTRATION NO. PQ 171