SIERRA CABLES PLC

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED

TH
30 SEPTEMBER 2010
(UNAUDITED)
SIERRA CABLES PLC
INCOME STATEMENT

GROUP COMPANY
For the 6 months ended 30 September 2010 2009 2010 2009
Rs. Rs. Rs. Rs.

Turnover 717,105,241 445,835,113 - -

Cost of Sales (622,804,915) (331,949,685) - -

Gross Profit 94,300,326 113,885,428 - -

Other Income 17,079,565 22,278,862 26,303,799 24,133,260

Selling & Distribution Expenses (32,882,709) (22,476,611) - -

Administrative Expenses (26,667,948) (19,836,144) (6,489,921) (3,554,442)

Other Expenses (200,000) - (2,244,375) -

Operating Profit 51,629,234 93,851,535 17,569,503 20,578,818

Finance Cost (34,566,173) (38,482,826) (703,328) (95,757)

Net Profit /(Loss) Before Associate Company's

Share of Profit 17,063,061 55,368,709 16,866,175 20,483,061

Share of Profit of Associate Company - 7,647,549 - -

Profit Before Tax 17,063,061 63,016,258 16,866,175 20,483,061

Taxation (2,541,285) (16,071,637) (2,336,761) (3,000,000)

Profit for the Period 14,521,776 46,944,621 14,529,414 17,483,061

Earnings Per Share 0.03 0.09 0.027 0.033

Figures in brackets indicate deductions.

SIERRA CABLES PLC
BALANCE SHEET

GROUP COMPANY
As at 30-Sep-10 31-Mar-2010 30-Sep-10 31-Mar-2010
Rs. Rs. Rs. Rs.
ASSETS
Non Current Assets
Property, Plant & Equipment 534,471,809 494,452,431 62,753,310 18,220,555
Investment in Subsidiaries - - 281,062,936 283,107,311
Other Long Term Investments 157,906,727 99,929,383 65,456,432 13,156,432
Goodwill on Consolidation 8,578,260 8,578,260 - -
Deferred tax asset 4,445,379 4,513,223 4,124,296 4,192,140
705,402,175 607,473,297 413,396,974 318,676,438
Current Assets
Inventories 596,469,560 477,668,382 - -
Trade & Other Receivables 719,287,523 591,455,874 2,030,977 3,143,568
Related Party Receivables 74,515,158 101,718,102 538,992,446 510,762,874
Income Tax Recoverable 4,534,427 6,544,202 - -
Short Term Investments 56,446,140 285,282,977 56,331,143 279,055,870
Cash in Hand & at Bank 17,359,301 9,183,091 8,982,868 1,994,314
1,468,612,109 1,471,852,628 606,337,434 794,956,626
TOTAL ASSETS 2,174,014,284 2,079,325,925 1,019,734,408 1,113,633,064

EQUITY AND LIABILITIES

Share Capital & Reserves
Stated Capital 894,565,898 894,565,898 894,565,898 894,565,898
Retained Profit 396,003,570 488,984,280 102,023,631 194,996,703
1,290,569,468 1,383,550,178 996,589,529 1,089,562,601

Non Current Liabilities

Retirement Benefit Obligations 10,395,025 9,724,153 - -
Deferred Tax Liability 48,230,600 48,230,599 - -
Long Term Loans 56,629,446 56,629,434 - -
Long Term Lease Liability 14,986,291 12,805,828 - -
130,241,362 127,390,014 - -

Current Liabilities
Creditors and Accruals 682,189,113 487,544,242 3,085,347 4,963,796
Current Portion of Long Term Loans 13,384,247 26,104,930 - -
Current Portion of Lease Liability 2,964,389 5,250,830 - -
Current Tax Liability 4,294,722 4,156,968 4,294,722 4,156,968
Related Party Payables 176,671 176,671 12,060,757 12,060,757
Bank Overdraft (Secured) 50,194,312 45,152,092 3,704,053 2,888,942
753,203,454 568,385,733 23,144,879 24,070,463
TOTAL LIABILITIES 2,174,014,284 2,079,325,925 1,019,734,408 1,113,633,064
Net asset Value per Share (Rs) 2.40 2.57 1.85 2.03

The Balance sheet as at 30th September 2010 and the Income statement for the period then ended are drawn from the unaudited accounts
of the company and its subsidiaries Alucop Cables Ltd,Alucop Marketing (Pvt)Ltd and Sierra Engineering & Construction (Pvt) Ltd.in
accordance with the accounting policies set out in the annual report as at 31st March 2010
The statement of changes in Equity and the notes herewith form a part of these financial statements.

……………………..…… ……………………...….. ………………………..

Chairman Director Chief Financial Officer
th
25 November 2010
Colombo.
SIERRA CABLES PLC
STATEMENT OF CHANGES IN EQUITY

For the 6 months ended 30 September 2010

Stated Retained
COMPANY Capital Profit Total

Balance as at 1 April 2009 894,565,898 58,030,686 952,596,584

Profit for the period - 17,483,061 17,483,061

Balance as at 30 September 2009 894,565,898 75,513,747 970,079,645

Balance as at 1 April 2010 894,565,898 194,996,703 1,089,562,601

Profit for the period - 14,529,414 14,529,414

Dividend Paid - (107,502,486) (107,502,486)

Balance as at 30 September 2010 894,565,898 102,023,631 996,589,529

Stated Retained
GROUP Capital Profit Total

Balance as at 1 April 2009 894,565,898 380,835,922 1,275,401,820

Profit for the period - 46,944,621 46,944,621

Balance as at 30 September 2009 894,565,898 427,780,543 1,322,346,441

Balance as at 1 April 2010 894,565,898 488,984,280 1,383,550,178

Profit for the period - 14,521,776 14,521,776

Dividend Paid - (107,502,486) (107,502,486)

Balance as at 30 September 2010 894,565,898 396,003,570 1,290,569,468

SIERRA CABLES PLC
CASH FLOW STATEMENT

GROUP COMPANY
For the 6 months ended 30 September 2,010 2009 2010 2009
Rs. Rs. Rs.
Cash Flow From Operating Activities

Profit before tax and share of associate Company's Profit 17,063,061 55,368,709 16,866,175 20,483,061

Adjustments for
Depreciation 28,849,064 24,095,335 237,500 237,500
Provision for Bad and Doubtful Debts 950,000 - - -
Provision for fall in value of investments 200,000 - 2,244,375 -
Provision for Retiring Gratuity 1,257,627 1,499,349 - -
Profit on sale of Property, Plant & Equipment - (33,351) - -
Interest Expenses 34,566,173 38,482,826 703,328 95,757
Interest Income (10,828,578) (22,134,605) (10,317,170) (17,882,059)
Dividend Income (2,172,193) (95,889) (15,986,630) (6,251,201)
Operating Profit/(Loss) before
working Capital Changes 69,885,154 97,182,374 (6,252,422) (3,316,942)

(Increase)/ Decrease in Inventories (118,801,178) (78,341,113) - -

(Increase)/ Decrease in Trade & Other Debtors (127,831,649) 124,330,170 1,112,591 (687,790)
(Increase)/ Decrease in Dues from Related Parties 26,252,944 513,538 (28,229,572) (17,276,387)
Increase/( Decrease) in Creditors & Accruals 194,644,871 (85,935,811) (1,878,449) 2,487,356
Increase/( Decrease) in Dues to Related Parties - - - -

Cash Generated From/(used in) Operations 44,150,142 57,749,158 (35,247,852) (18,793,763)

Interest Paid (32,553,110) (37,730,552) (703,328) (95,757)

Income Tax Paid (325,912) (14,143,311) (2,131,163) (8,008,824)
Payment of Retiring Gratuity (586,755) (273,805) - -
Net Cash Flows From / (used in) Operating Activities 10,684,365 5,601,490 (38,082,343) (26,898,344)

Cash Flow from Investing Activities

Acquisition of Property, Plant & Equipment (66,349,215) (4,224,205) (44,770,255) (1,321,206)
Sale Proceeds of Property, Plant & Equipment - 75,000 - -
Investment in Shares / Unit Trusts (52,500,000) - (52,500,000) -
Net Investment in Treasury Bills 203,302,950 (12,001,953) 203,703,125 (2,435,593)
Net Investment in Fixed/call Deposits 834,942 (50,083) - -
Net Investment in Commercial Papers 19,021,602 14,198,715 19,021,602 8,777,660
Interest Income 10,828,578 22,134,605 10,317,170 17,882,059
Dividend Received from Associate - 6,376,151 - -
Dividend Received 2,172,193 95,889 15,986,630 6,251,201
Net Cash Generated From /(used in)
Investing Activities 117,311,050 26,604,119 151,758,272 29,154,121
SIERRA CABLES PLC
CASH FLOW STATEMENT

Cash Flow from Financing Activities

Short term loan paid - (5,203,017) - -
Long term Loans obtained - 8,348,068 - -
Repayment of Long term Loans (12,720,671) (8,203,499) - -
Net Repayment of Lease (4,638,268) (2,890,694) - -
Dividend paid (107,502,486) - (107,502,486) -
Net Cash Generated From /(used in)
Financing Activities (124,861,425) (7,949,142) (107,502,486) -

Net Increase in Cash and Cash Equivalents 3,133,990 24,256,467 6,173,443 2,255,777
Cash & cash Equivalents at the beginning of the year (35,969,001) (8,148,236) (894,628) (2,998,370)
Cash & cash Equivalents as at 30 September (32,835,011) 16,108,231 5,278,815 (742,593)

Cash & cash Equivalents

Cash in hand and at Bank 17,359,301 24,256,467 8,982,868 2,217,067
Bank Overdraft (50,194,312) (8,148,236) (3,704,053) (2,959,660)
(32,835,011) 16,108,231 5,278,815 (742,593)

Figures in brackets indicate deductions.

Notes
Alucop Cables Ltd which is the manufacturing company is a fully owned subsidiary of Sierra Cables Ltd.

(1) The Balance sheet as at 30th September 2010 and the income statement for the period then ended are drawn from the unaudited accounts
of the company and its subsidiaries Alucop Cables Ltd,Alucop Marketing (Pvt)Ltd and Sierra Engineering & Construction (Pvt) Ltd
in accordance with the accounting policies set out in the annual report as at 31st March 2010

(2) There have been no other events subsequent to the interim period ,which require disclosure in the interim financial statements.

(3) There has not been a significant change in the nature of the contingent Liabilities which were disclosed in
the Interim Financials for the period ended 30th September 2010.

(4) Figures shown in brackets indicate deductions

Market Value of shares
2009 2010
Rs. Rs.
Highest Price during the period 2.00 5.30
Lowest Price during the period 1.60 2.20
Last Traded Price during the period 1.90 4.90

(5) Sierra Cables PLC

Directors Shareholding As at 30th September 2010

Mr. W.A.P.Perera 3,920,510

Mr.D.S.Panditha 16,572,250
Mr.F.A.W.Irugalbandara 10
Mr.E.A.T.B.Perera 10
Mr.R.M.S.Fernando -
Dr.D.G.K.E.Weerapperuma -
Ms.G.S.M.Irugalbandara 1,709,800
Mr.L.D.N.Nayana 10
Mr.J.H.P.Ratnayake -
22,202,590

(6) Sierra Cables PLC

Public Holding of Issued Share Capital 37.76%

Issued share Capital representing 537,512,430 no's of Ordinary shares

Notes continued
(7) SIERRA CABLES LIMITED
List of 20 Major Shareholders
based on their Shareholdings as at 30-SEP-2010

PERCENTAGE
N0 NAME & ADDRESS SHAREHOLDING
(%)

1 Sierra Holdings (Private) Ltd 312,335,490 58.11

2 Mr. Daya Shamendra Panditha 16,572,250 3.08

3 Seylan Bank Limited/ S.V. Somasundaram 8,448,300 1.57

4 Seylan Bank Limited/ G.Rahanan 6,626,900 1.23

5 Employees' Provident Fund 6,016,300 1.12

6 Mr.Silva Arruhandura Sahantha Rayynor 5,078,900 0.94

7 Mr. Abeyratne Banda Sarath Herath 4,800,000 0.89

8 Seylan Bank Limited/ A/c 3 4,374,400 0.82

9 Pan Asia Banking Corporation PLC/Emagwise(Pvt)Ltd 4,349,400 0.81

10 Bank Of Ceylon No.1 Acc 4,205,000 0.78

11 Mr. Wahalathanthirige Anil Priyantha Perera 3,920,510 0.73

12 Tranz Dominion,LLC 3,500,000 0.65

13 Lanka Orix Leasing Company PLC 3,489,300 0.65

14 National Savings Bank 2,564,100 0.48

15 Mr.Devasurendra Ajith Lasantha 2,488,700 0.46

16 Mr.Gajendran Perumal 2,276,200 0.42

17 Mr.Ranweera Bathiya Chandana 2,161,700 0.40

18 Mr.Gajendran Reyantha Thshan 2,035,700 0.38

19 Nexus Nubart Holdings (Pvt) Ltd 2,000,000 0.37

20 Mr. Silva Yonmerenne Simon Hewage Indika Kumara 1,746,364 0.32

TOTAL 398,989,514 74.23