Brown & Company PLC

Income Statements

Consolidated
Unaudited Unaudited % Unaudited
3 months to 3 months to Change 12 months to
30.6.2008 30.6.2007 31.3.2008

Gross turnover 1,625,170 1,307,260 24 5,845,880

Turnover tax (27,416) (10,821) 153 (49,132)

Net turnover 1,597,754 1,296,439 23 5,796,748

Cost of sales (1,202,236) (1,008,860) 19 (4,552,328)

Gross Profit 395,518 287,579 38 1,244,420

Other operating income 3,510 4,466 (21) 144,203

Operating expenses (236,807) (186,010) 27 (795,993)

Financing Cost (167,409) (78,973) 112 (397,060)

Change in fair value of Investment Proerties - 20,226

Profit on disosal of Subsidiary - 51,587

Share of Associate Companies Profit (

Net of Tax ) 4,227 7,209 (41) 20,077

Profit/(Loss) before tax (961) 34,271 (103) 287,460

Income tax expense (8,357) (9,171) (9) 148,902

Profit / (Loss) for the Period (9,319) 25,100 (137) 436,362

Attributable to :
Equity Holders of the Company (9,347) 24,970 445,450
Minority interest 28 130 (9,088)
(9,319) 25,100 436,362

Basic earnings/(deficit) per share - Rs. (3.56) 9.56 (137) 169.70

Company
Unaudited Unaudited % Unaudited
3 months to 3 months to Change 12 months to
30.6.2008 30.6.2007 31.3.2008

Gross turnover 1,456,353 1,161,103 25 5,169,610

Turnover tax (11,323) (9,503) 19 (43,592)

Net turnover 1,445,030 1,151,600 25 5,126,018

Cost of sales (1,120,026) (918,587) 22 (4,074,094)

Gross Profit 325,004 233,013 39 1,051,924

Other operating income 2,008 3,411 (41) 78,038

Operating expenses (206,032) (146,741) 40 (658,233)

Financing Cost (107,056) (69,922) 53 (320,333)

Change in fair value of Investment Proerties - 20,226

- - - -

Profit before tax 13,924 19,761 (30) 171,622

Income tax expense (7,607) (5,006) 52 137,068

Profit for the Period 6,317 14,755 (57) 308,690

Attributable to :
Equity Holders of the Company 6,317 14,755 308,690
Minority interest
6,317 14,755 308,690

Basic earnings/(deficit) per share - Rs. 2.41 5.62 (57) 117.60

Note : All values are in Rupees '000s, unless otherwise stated

The above figures are subjected to audit.
 Brown & Company PLC
Balance Sheets
Consolidated Company
As at Unaudited as at As at Unaudited as at
30.06.2008 31.3.2008 Change 30.06.2008 31.3.2008 Change
ASSETS

Non-current assets
Property, Plant and Equipment 3,265,204 3,266,859 (0.1) 3,068,081 3,068,895 (0.03)
Investment Properties 151,967 151,967 - 151,967 151,967 -
Leasehold Right over Land 48,052 48,052 - 48,052 48,052 -
Investment in Subsidiaries - - - 76,737 76,736 -
Investment in Joint Ventures - - - 135,000 100,000 35
Investment in Associates 142,700 170,629 (16) 450 450 -
Other long term investments 3,842,847 3,788,793 1 2,110,542 2,110,541 -
Deffered Tax Assets 353,760 373,032 (5) 334,347 334,347 -
Intangible Assets 9,429 12,601 (25) 2,357 2,514 (6)
7,813,959 7,811,933 0.03 5,927,533 5,893,502 0.6

Current assets
Inventories 1,434,074 1,032,198 39 1,199,808 911,839 32
Trade and other receivables 2,194,255 1,855,207 18 1,538,289 1,255,963 22
Short Term Investments / Deposits 31,954 44,355 (28) - - -
Cash in hand & at bank 80,994 48,673 66 51,713 35,660 45
3,741,277 2,980,433 26 2,789,810 2,203,462 27
Total assets 11,555,236 10,792,366 7 8,717,343 8,096,964 8

EQUITY AND LIABILITIES

Capital and reserves

Stated capital 21,101 21,101 - 21,101 21,101 -
Reserves 7,105,127 7,115,871 (0.2) 5,276,382 5,270,065 0.1
Equity Attributable to Equity Holders of
the Parent 7,126,228 7,136,972 (0.2) 5,297,483 5,291,166 0.1
Minority interest 6,728 5,681 18 -
Total equity 7,132,956 7,142,653 (0.1) 5,297,483 5,291,166 0.1

Non-current liabilities
Interest-bearing loans and borrowings 930,275 892,493 4 518,968 552,449 (6)
Retirement benefit obligations 68,975 63,880 8 55,150 53,213 4
999,250 956,373 4 574,118 605,662 (5)

Current liabilities
Interest-bearing loans and borrowings 1,621,918 1,310,465 24 1,063,918 709,575 50
Trade & other payables 1,789,698 1,366,221 31 1,774,726 1,483,289 20
Income tax payable 11,414 16,654 (31) 7,098 7,273 (2)
3,423,030 2,693,340 27 2,845,742 2,200,137 29
Total equity, minority -interest
and liabilities 11,555,235 10,792,366 7 8,717,343 8,096,965 8

Net assets per share (Rs. 2,714.75 2,718.85 2,018.09 2,015.68

Note : All values are in Rupees '000s, unless otherwise stated

The above figures are subjected to audit

The Balance Sheet as at 30th June 2008 and related Statements of Income, Changes in Equity and Cash Flow for th
quarter ended 30th June 2008 are drawn up from the unaudited financial statements of the Company, it
Subsidiaries and Associates, and they provide the information required by the Colombo Stock Exchang

The Board of Directors is responsible for the preperation and presentation of these financial Statements. The Chief Financial Offic
certifies that the financial statements have been prepared in compliance with the requirements of the Companies Act No. 7 of 200

Signed on behalf of the Board

Mrs. R.L. Nanayakkara N. M. Prakash J. Dissanayake

Chairperson CEO/Group Managing Director Chief Financial Officer
12th August 2008

The market value of an ordinary share of Brown & Company PLC was as follows

30.06.2008 30.06.2007
Rs. Rs.

Last traded price recorded for 3 months ended 950 610

Highest price recorded for 3 months ended 1,120 700
Lowest price recorded for 3 months ended 930 525
 Brown & Company PLC
Cash Flow Statements
Consolidated Company
3 Months to 30th June 3 Months to 30th June
2008 2007 2008 2007

Cash flows from Operating Activities

Profit Before Taxation (961) 34,271 13,924 19,761
Adjustment for
Share of Associate Company Profi (4,227) (7,209) - -
(Gain)/ loss on disposal of
property, plant & equipmen - (2,268) - (2,264)
(Gain)/ loss on disposal of investments - - - 7,395
Depreciation on property, plant & equipmen 9,614 7,217 7,845 6,599
Provision for retiring gratuity 2,761 3,091 2,567 2,107
Interest paid 167,409 81,279 107,056 69,922
Interest Income (936) - - -
Dividend Received - (2,304) - -

Working Capital Changes

(Increase)/decrease in inventorie (401,876) (670) (287,969) (28,251)
(Increase)/decrease in receivable (339,048) 168,190 (282,326) (90,683)
Increase/(decrease) in payable 423,477 16,356 291,437 228,007
Cash generated from operations (143,788) 297,953 (147,466) 212,593

Interest paid (167,409) (81,279) (107,056) (69,922)

Income tax paid (13,771) (25,814) (7,782) (19,772)
Retiring gratuity paid (666) (2,031) (630) (1,037)
Net cash flows from operating activities (325,634) 188,829 (262,934) 121,862

Cash flows from Investing Activities

Purchase and construction of
property, plant & equipmen (20,984) (6,613) (17,904) (3,972)
Purchase of investments (40,000) - (35,000) -
Proceeds from sale of property, plant & equipmen - 2,264 - 2,264
Proceeds from sale of investments - 74,651 - 73,627
Dividend Received - 2,304 - -
Interest income 936 - -
Net cash used in investing activities (60,048) 72,606 (52,904) 71,919

Cash flows from Financing Activates

Lease rental paid (3,614) (1,922) (1,151) (1,223)
Repayment of term loans (42,970) (31,639) (34,477) (29,376)
Net cash flows from financing activities (46,584) (33,561) (35,628) (30,599)

Net Increase / (decrease) in cash &

cash equivalents (432,266) 227,874 (351,466) 163,182
Cash and cash equivalents at the
beginning of the year (266,248) (266,248) (481,604) (337,115)
Cash and cash equivalents at the
end of the period (Note A) (698,513) (38,374) (833,070) (173,933)

A. Analysis of Cash & Cash Equivalents

Bank and cash balances 80,994 221,985 51,713 211,779
Short term deposits 31,954 29,764 -
Bank Borrowings (811,461) (290,123) (884,783) (385,712)
(698,513) (38,374) (833,070) (173,933)

Notes to the Financial Statements

1. The quarterly Financial Statements have been prepared in accordance with the Accounting Policies set out in the Ann
Report for the year ended 31st March 2007 and also in compliance with the Sri Lanka Accounting Standard 35- Inte
Financial Reporting

2 Brown & Company PLC's stated capital represents Issued and fully paid 2,625,000 ( 2,625,000 - 31.03.2008 ) ordina
shares as at 30.06.2008

4. Interim figures are provisional and subject to audi

5 All values are in Rupees '000s, unless otherwise state

 Brown & Company PLC
Statements of Changes in Equity
Consolidated
Attributable to Equity Holders of Parent
Stated Capital Revenue Total Minority Total
Capital Reserves Reserves Interest Equity

Balance as at 01.04.2007 21,101 4,755,485 491,682 5,268,268 16,265 5,284,533

Effect of changes in equity

holdings 23,003 23,003 23,003

Disposal of Subsidiary 119 (7,303) (7,184) (7,184)

Profit for the period 24,970 24,970 130 25,100

Balance as at 30.06.2007 21,101 4,755,604 532,352 5,309,057 16,395 5,325,452

For the balance period - 1,432,222 395,693 1,827,915 (10,714) 1,817,201

Balance as at 31.03.2008 21,101 6,187,826 928,045 7,136,972 5,681 7,142,653

Adjustment for debit balance

in Minority Interest (1,019) (1,019) 1019 -

Changes in equity holdings 1,512 (1,890) (378) (378)

Profit for the period (9,347) (9,347) 28 (9,319)

Balance as at 30.06.2008 21,101 6,189,338 915,789 7,126,228 6,728 7,132,956

Company
Stated Capital Revenue Total
Capital Reserves Reserves

Balance as at 01.04.2007 21,101 3,760,921 212,723 3,994,745

Disposal of Subsidiary (55,761) 48,367 (7,394)

Profit for the period 14,755 14,755

Balance as at 30.06.2007 21,101 3,705,160 275,845 4,002,106

For the balance period - 1,033,053 256,007 1,289,060

Balance as at 31.03.2008 21,101 4,738,213 531,852 5,291,166

Profit for the period 6,317 6,317

Balance as at 30.06.2008 21,101 4,738,213 538,169 5,297,483

Brown & Company PLC
Segment Information

Turnover
3 months to Unaudited 12
months to
30.06.2008 30.06.2007 31.03.2008

Trading 1,423,881 1,164,782 5,470,623

Manufacturing - 1,428 2,909
Travel & Tours 4,016 4,056 16,839
Finance 46,428 34,717 153,541
Power & Energy 94,387 59,119 252,980
Pharmaceuticals 68,003 43,158 16,256
1,636,715 1,307,260 5,913,148
Intra group eliminations (11,545) - (67,268)
1,625,170 1,307,260 5,845,880

Profit/(Loss) from Operations

3 months to Unaudited 12
months to
30.06.2008 30.06.2007 31.03.2008

Trading 114,391 85,774 429,927

Manufacturing (1,054) (729) (4,168)
Travel & Tours 178 363 2,005
Finance 35,806 12,642 82,999
Power & Energy 10,963 4,069 22,477
Pharmaceuticals 5,230 3,916 12,768
165,514 106,035 546,008

Intra group eliminations (3,294) - (18,218)

162,220 106,035 527,790

Note : All values are in Rupees '000s, unless otherwise stated

The above figures are subjected to audit.