FINANCIAL STATEMENTS

30th SEPTEMBER 2012

Tess Agro PLC# 87, New Nuge Road,

Kelaniya

INTERIM

FOR THE PERIOD ENDED

        Balance Sheet

As At 30th September 2012

As at  As at  As at 30th Sep. 2012 30th Sep. 2011 31st Mar. 2012Unaudited Unaudited Audited

Rs. Rs. Rs.ASSETSNON CURRENT ASSETS

Property , Plant & Equipment 289,951,556         259,807,626         282,419,422        Investment in Subsidiary 9,800,000              9,800,000              9,800,000              

299,751,556         269,607,626         292,219,422        CURRENT ASSETS 306,261,917         194,933,607         223,995,985        TOTAL ASSETS 606,013,473         464,541,233         516,215,407        

EQUITY & LIABILITIESStated Capital 204,967,698         204,967,698         204,967,698        Reserves 61,552,100            63,697,716            61,552,100            Retained earnings 33,899,275            43,309,852            43,038,998            

Total Equity 300,419,073         311,975,266         309,558,796        

NON CURRENT LIABILITIESDeferred Income 1,437,229              2,057,429              1,437,229              Interest Bearing Borrowings 54,929,925            26,773,789            31,077,864            Retirement Benefit Obligations 1,438,258              916,558                 1,338,257              

57,805,412            29,747,776            33,853,350            CURRENT LIABILIITES 247,788,989         122,818,191         172,803,261        TOTAL EQUITY & LIABILITIES 606,013,473         464,541,233         516,215,407        

No of Shares 180,000,000         180,000,000         180,000,000        

Net assets value per share 1.67 1.73 1.72

Market value per share     ­ Highest 3.40                          6.90                          6.90                                                                             ­ Lowest 2.20                          2.40                          2.30                                                                             ­ Closing 3.00                          6.00                          2.70                         

The above figures are provisional and subject to audit

H.N.O.P.Fernando  D.Fernando 

COMPANY

Chairman Director / CEO 

Figures in the brackets indicate deductions.

                         Income Statement

For the Six Month Ended 30th September 2012

Unaudited Unaudited Audited

30th Sep. 2012 30th Sep. 2011 31st Mar. 2012

Rs. Rs. Rs.

Turnover 307,667,540         295,153,343         566,083,689        

Cost of Sales (287,524,356)        (269,564,712)        (510,514,879)       

Gross Profit 20,143,184            25,588,631            55,568,810           

Other Operating Income (1,447,345)             1,309,898              3,598,319             

Selling & Distribution Costs (2,005,975)             (469,949)                (4,199,180)            

Administrative Expenses (13,004,613)          (11,318,090)          (25,039,229)         

Other Expenses ‐                            ‐                           (165,132)               

Profit from Operations 3,685,251              15,110,490            29,763,588           

Dividend Income 4,898                        6,918                       9,198                      

Profit before Interest 3,690,149              15,117,408            29,772,786           

Finance Costs (12,829,873)          (4,044,695)             (12,116,543)         

Profit /(Loss) before Tax (9,139,723)             11,072,713            17,656,243           

Provision for Taxation ‐                            ‐                           ‐                           

Net Profit/(Loss) after Tax (9,139,723)             11,072,713            17,656,243           

Profit available for Appropriation (9,139,723)             11,072,713            17,656,243           

Earnings per Share (0.051)                      0.062                        0.098                       

Figures in the brackets indicate deductions.180,000,000                 180,000,000                 180,000,000                

COMPANY

                        Cash Flow Statement

For the Six Month Ended 30th September 2012

Unaudited Unaudited Audited30th Sep. 2012 30th Sep. 2011 31st Mar. 2012

Rs. Rs. Rs.Cash flow from Operating ActivitiesCash Receipts from Customers 270,133,762           280,076,001           522,380,765          Cash Paid to Suppliers & Employees (355,063,874)          (288,789,986)          (544,637,864)         Cash Generated from Operations  (84,930,112)          (8,713,986)             (22,257,099)         Gratuity Paid ‐                             ‐                             ‐                            Interest Paid (12,232,671)            (222,713)                  (6,338,480)              Income Tax Paid ‐                             ‐                             ‐                            ESC Paid (307,668)                  (460,270)                  (621,485)                 Withholding Tax Paid ‐                             ‐                             ‐                            Net Cash flow from Operating Activities (97,470,451)          (9,396,968)             (29,217,064)         

Cash flow from Investing ActivitiesAcquisition of Property,Plant & Equipment (11,444,527)            (789,085)                  (31,449,926)           Acquisition of Investment ‐                             ‐                             ‐                            Interest Received 292,540                    7,011                         234,668                   Dividend Received 4,898                         6,918                         9,198                        Proceeds from sale of Shares ‐                             ‐                             ‐                            Short Term Investment ‐                             ‐                             ‐                            Exchange Gain / (Loss) (1,739,885)               809,844                    ‐                            Investment in fixed Deposits and shares ‐                             ‐                             (10,629,319)           Net Cash flow from Investing Activities (12,886,975)          34,688                     (41,835,379)         

Cash flow from Financing ActivitiesRepayment of Interest Bearing Borrowings (418,758,388)          (116,522,606)          (313,460,952)         Proceeds from Long Term Loans ‐                             ‐                             ‐                            Proceeds from Interest Bearing Borrowings 497,462,547           139,479,471           386,829,394          Grants Received ‐                             ‐                             ‐                            Divident Paid ‐                             ‐                             ‐                            Net Cash flow from Financing Activities 78,704,160            22,956,865            73,368,442           

Net Increase/(Decrease) in Cash & Cash Equivalent (31,653,267)          13,594,584            2,315,998              Cash & Cash Equivalents at the Beginning of the Year (18,973,234)            (21,289,242)            (21,289,232)           Cash & Cash Equivalents at the End of the Year (50,626,501)          (7,694,658)             (18,973,234)         

     Company

                         Statement of Changes in Equity

For the Six Month Ended 30th September 2012

TotalStated  Revaluation  Capital RetainedCapital Surplus Reserves EarningsRs. Rs. Rs. Rs. Rs.

Balance as at 01st April 2011 204,967,698        61,950,273          1,747,443             32,237,139          300,902,553       Net Profit/(Loss) for the year ‐                          ‐                          ‐                          11,072,713          11,072,713         Balance as at 30th September 2011 204,967,698        61,950,273          1,747,443             43,309,852          311,975,266       Net Profit/(Loss) for the period ‐                          ‐                          ‐                          6,583,530             6,583,530            Final Dividend Paid 2010/11 (9,000,000)           (9,000,000)          Transfer to / (from) retained earnings ‐                          (2,145,616)           ‐                          2,145,616             ‐                         Balance as at 31st March 2012 204,967,698        59,804,657          1,747,443             43,038,998          309,558,796       Net Profit/(Loss) for the period ‐                          ‐                          ‐                          (9,139,723)           (9,139,723)          Balance as at 30th September 2012 204,967,698        59,804,657          1,747,443             33,899,275          300,419,073       

Notes to the Financial StatementsThe Company has followed the same accounting policies and methods of computation as disclosed in the Annual Report for the year ended 31st March 2012

There have been no other event subsequent to the interim period , which require disclosurein the provisional Financial Statements.

Attributable to equity holders of the parent

Notes to the Financial Statements

The Company has followed  the same  accounting policies and methods of computation as disclosedin  the  Annual  Report  for   the  year  ended   31 st 

March 2012.

There  have  been  no  other  events  subsequent to the  interim period,  which require disclosure in the provisional Financial statements.

There has not been any Contingent Liabilities subsequent to the interim period, which require disclosure in the provisional Financial statements.

TESS AGRO  PLCNo. 87, New Nuge Road,Kelaniya.

1 Directors' Shareholdings

1 Mr.Oliver Fernando 303,395              0.17%2 Mrs.S.F.Fernando 247,170              0.14%3 Mr.Shiran Fernando 151,690              0.08%4 Mr.Roshan Fernando 151,690              0.08%5 Mr.Dilshan Fernando 283,240              0.16%

2 Shares held by Public  40.62%

3 Major Shareholders No. of Shares %

1 TESS (PRIVATE) LIMITED            79,343,592  44.08%2 SRI LANKA INSURANCE CORPORATION LTD‐LIFE FUND 26,380,200           14.67%3 TROPIC FROZEN FOODS LTD               5,955,550  3.31%4 WALDOCK MACKENZIE LTD/MR.S.A.GULAMHUSEIN               2,236,850  1.24%5 THURSTAN INVESTMENT LTD 2,163,130             1.20%6 TRANZ DOMINION,L.L.C. 1,600,000             0.89%7 IMTIAZ T.L.M .MR 1,513,995             0.84%8 JAZEEL F.M .MR 1,151,245             0.64%9 DE SILVA A.R. MR 1,000,000             0.56%10 PALPITA V.P.K.A .MR 817,600                 0.45%11 PAN ASIA BANKING CORPARATION PLC./MR.SHABBIR ABBAS 712,960                 0.40%12 FIRST CAPITAL MARKETS LIMITED/ MR. M.A.U. GNANATHI 662,000                 0.37%13 ARAFATH AKRAM M.A.M .DR 660,000                 0.37%14 DE MEL A.L.F.MR 635,852                 0.35%15 ABEYGUNAWARDENA A.S .DR 603,562                 0.34%16 WALDOCK MACKENZIE LTD/ MR.K.I. DHARMAWARDENA 590,700                 0.33%17 QASIM M.A .MR 588,000                 0.33%18 VIGNARAJAH K.C .MR 525,228                 0.29%19 GOONATILAKE P.C.L. MR 519,300                 0.29%20 BOSTON CAPITAL (PVT) LTD 500,000                 0.28%

                          Corporate Information

NAME OF COMPNAY : TESS AGRO PLC

REGISTERED OFFICE : 87, New Nuge Road,Kelaniya

TELEPHONE NO : 2910859

FAX NO : 2910615

E­MAIL ADDRESS : tess@slt.lk

WEB ADDRESS : www.tess.lk

DATE, PLACE AND THE AUTHORITY : 20 May 1992, ColomboOF INCORPORATION Companies Act No.17 of 1982

Companies Act No.07 of 2007PB 689 PQ

BOARD OF DIRECTORS : MR.H.N. Oliver P. FernandoProf. Arthur H. DE O. BamunuarachchiMrs. S.F. FernandoMr. Shiran FernandoMr. Roshan FernandoMr. Dilshan FernandoMr. A. R. Peiris

SECRETARIES TO THE COMPANY : Consultants & Corporate Secretaries (Pvt) Limited.35 1/1, Devanampiyatissa Mawatha,Colombo 08.

AUDITORS : Sarma & Co.,Chartered Accountants186 2/1, Dam Street,Colombo 12.

LAWYERS : F J & G De SaramCorporate Law Office210, De Saram Road,Colombo 10.

BANKERS TO THE COMPANY : Commercial Bank of Ceylon PLC.National Development Bank PLC.Seylan Bank PLC.Hongkong & Shanghai Banking Corporation Ltd.

Tess Agro PLCNo. 87, New Nuge Road,Kelaniya.