WATAPOTA INVESTMENTS PLC

INTERIM REPORT

FOR THE FIRST QUARTER ENDED 30TH JUNE 2010

WATAPOTA INVESTMENTS PLC

Income Statement

For the three months ended 30th June 2010 2009 Change Year ended
% 31.03.2010
(All figures are in Sri Lankan Rs ' 000 ) (Audited)

Revenue 1,536 50,061 -97% 67,478

Carrying value of investments disposed - (51,936) -100% (52,422)

Mark to market value adjustment - 14,163 -100% 5,135

Profit on portfolio activities 1,536 12,288 -88% 20,191

Administrative expenses (384) (500) -23% (2,105)

Profit from operations 1,152 11,788 -90% 18,086

Finance Cost - - - -

Profit before taxation 1,152 11,788 -90% 18,086

2
Taxation (451) (611) -26% (2,317)

Profit for the period 701 11,177 -94% 15,769

Earnings per share (Rs.) 1.05 16.66 23.50

*Dividend per share (Rs.) - 17.50 132.00

Changes % represent the percentage change in current period's results compared to comparative period
of previous year.

Figures in brackets indicate deductions/negative changes.

* Dividend per share is based on proposed Dividend

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WATAPOTA INVESTMENTS PLC

Balance Sheet As at
As at 30th June 2010 2009 31.03.2010
(All figures are in Sri Lankan Rs ' 000 ) (Audited)
ASSETS
Non-current Assets
Long-term investments - - -
- - -
Current Assets
Trade and other receivables 50 222 70
Short-term investments - 9,512 -
Short-term deposits - 81,480 -
Cash at bank 22,874 8,857 105,550
22,924 100,071 105,620
Total Assets 22,924 100,071 105,620

EQUITY & LIABILITIES

Capital & Reserves
Stated capital 10,400 10,400 10,400
General reserve 619 5,914 619
Retained earnings 3,637 81,622 91,509
Shareholders' funds 14,656 97,936 102,528

Current Liabilities
Trade and other payables 1,508 1,206 1,647
Income tax payable 1,687 381 1,380
Dividend payable 5,073 548 -
Bank overdraft - - 65
8,268 2,135 3,092
Total Equity & Liabilities 22,924 100,071 105,620
(1) (0) -

Net assets per share (Rs.) 21.84 145.95 152.80

The Balance Sheet as at 30th June 2010, and the Statements of Income, Changes in Equity & the Cash Flow for the three
months then ended have been drawn up from unaudited accounts.

I certify that these Financial Statements comply with the requirements of the Companies Act No. 07 of 2007.

(Sgd) (1) (0) -

A. P. Weeratunge
Chief Financial Officer
Carsons Management Services (Private) Limited

Approved & Signed on behalf of the Investment Approved & Signed on behalf of the Board,
Managers,

(Sgd) (Sgd) (Sgd)

W. Y. R. Fernando I. Paulraj S. Mahendrarajah
Director Chairman Director
Guardian Fund Management Limited

2nd September 2010

Colombo 2
WATAPOTA INVESTMENTS PLC

Statement of Changes in Equity

For the three months ended 30th June 2010 Market value
Stated Adjustment General Retained Total
(All figures in Sri Lankan Rupees '000) Capital Reserve Reserve Earnings Equity

Balance as at 1st April 2009 10,400 5,295 619 82,188 98,502

Net profit for the period - - - 15,769 15,769

Transfers - (5,295) - 5,295 -

Dividend paid for the year 2009 - - - (11,743) (11,743)

Balance as at 31st March 2010 (Audited) 10,400 - 619 91,509 102,528

Balance as at 1st April 2010 10,400 - 619 91,509 102,528

Net profit for the period - - - 701 701

Dividend paid for the year 2010 - - - (88,573) (88,573)

Balance as at 30th June 2010 (Unaudited) 10,400 - 619 3,637 14,656

Balance as at 1st April 2009 10,400 5,295 619 82,188 98,502

Net profit for the period - - - 11,177 11,177

Dividend paid for the year 2009 - - - (11,743) (11,743)

Balance as at 30th June 2009 (Unaudited) 10,400 5,295 619 81,622 97,936

Figures in brackets indicate deductions.

Cash Flow Statement

Year ended
For the three months ended 30th June 2010 2009 31.03.2010
(All figures in Sri Lankan Rupees '000) (Audited)

Net cash generated from operating activities 889 23,070 38,441

Net cash used in financing activities (83,500) (11,195) (11,418)

Net increase /(decrease) in cash & cash equivalents (82,611) 11,875 27,023

Cash & cash equivalents at the beginning of the period 105,485 78,462 78,462

Cash & cash equivalents at the end of the period 22,874 90,337 105,485

Cash & cash equivalents

Cash at bank 22,874 8,857 105,550
Short term deposit - 81,480 -
Bank overdraft - - (65)
22,874 90,337 105,485
Figures in brackets indicate deductions 3
1 0 -
WATAPOTA INVESTMENTS PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. Basis of preparation of Interim Financial Statements.

The Interim Financial Statements of the Company are prepared in consistence with the accounting policies and
procedures applied for the year ended 31st March 2010 and are in compliance with Sri Lanka Accounting Standard 35 -
Interim Financial Reporting.
Further, provision of the Companies Act No. 7 of 2007 have been considered in preparing the Interim Financial
Statements of the Company.

2. Events occurring after the Balance Sheet date

The company has received an offer letter dated 26th August 2010, from Capital Alliance Holdings Limited stating their
intention to purchase all the shares of the Company at Rs. 40.60 per share.

According to section 12 of Takeovers and Mergers Code 1995 amended in 2003, the Company has sought independent
advice on the offer and the advice and the comments of the Company Board of Directors would be made known to the
shareholders within the time stipulated by the section 13(2) of the said Code.

Subsequent to the Balance Sheet date, no circumstances have arisen except as stated above which would require
adjustments to or disclosure in the Interim Financial Statements.

3. Contingent Liabilities
There were no changes of a material nature in the contingent liabilities since the last annual report date.

4. Stated Capital As At As At As At
30.06.2010 30.06.2009 31.03.2010
(In Rs.'000) (Audited)

Fully paid Ordinary Shares of 671,008 10,400 10,400 10,400

5. Restatement of Comparative Figures

Comparative figures have been restated where necessary to conform to the classification and presentation as at 30th June
2010.

6. Investor Information
Market Performance - Ordinary Shares 30.06.2010

Last traded price per share (Rs.) 800.00

Highest price per share during period (Rs.) 1,900.00
Lowest price per share during period (Rs.) 800.00

7. Public Holding
The Percentage of shares held by Public as at 26th August 2010 was 13.23%.

8. Directors Shareholding as at 26th August 2010

No. of Shares
Mr. I. Paulraj 200
Mr. S. Mahendrarajah 25
Mr. D. C. R. Gunawardena 25

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WATAPOTA INVESTMENTS PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

9. Twenty Major Shareholders as at 26th August 2010

Total Shares %

1 CARSON CUMBERBATCH PLC 581,950 86.73

2 LAKE VIEW INVESTMENTS LTD 22,948 3.42

3 MINERVA NOMINEES LIMITED 9,075 1.35

4 TATA INVESTMENT CORPORATION LTD 2,720 0.41

5 MR. S. WEERASEKERA 2,240 0.33

6 MERCHANT BANK OF SRI LANKA LIMITED/UNION INVESTMENTS 2,200 0.32

LTD

7 MR. E.A.G. DE SILVA 2,160 0.32

8 MR. C.E.G. ABAYASEKERA 1,600 0.24

9 THE INVESTMENT & FINANCE COMPANY LIMITED. 1,600 0.24

10 MRS G.H.O. ANSCOMBE 1,480 0.22

11 EXECUTOR OF THE ESTATE OF MR. AMIRTHANAYAGAM 1,360 0.20

12 WALWIN ARNOLD DE SILVA & MANIK WALWIN DE SILVA 1,280 0.19

13 MR. W.W.S. AMARASOORIYA 1,171 0.17

14 MS. C.A. VANDEN DRIESEN 1,034 0.15

15 MRS A.J. MARTENSTYN 1,030 0.15

16 MRS E.M.D. DE SILVA 960 0.14

17 HOMI MEHTA & SONS (PRIVATE) LIMITED 960 0.14

18 MR. N.H. OMAR 880 0.13

19 MR. K.P. KALIAPPAPILLAI 800 0.11

20 MR. N.M. TODYWALLA 800 0.11

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 WATAPOTA INVESTMENTS PLC
Interim Financial Report

30th June 2010

Corporate Information

Name of the Company Watapota Investments PLC

(A Carson Cumberbatch Company)

Company No PQ-49

Legal Form A Public Quoted Company with Limited Liability.

Incorporated in Sri Lanka in 1920

Principal Activity and The principal activity of the company is holding

Nature of Operations and managing of an investment portfolio

Parent Enterprise The Company's holding company and controlling entity

is Carson Cumberbatch PLC, which is incorporated in Sri Lanka

Directors I. Paulraj (Chairman)

S. Mahendrarajah
D. C. R. Gunawardena

Alternate Director S. Mahendrarajah (for I.Paulraj )

Bankers Standard Chartered Bank

Commercial Bank of Ceylon PLC
Deutsche Bank AG Colombo

Auditors Messrs.KPMG Ford, Rhodes,Thornton & Company

Chartered Accountants
No 32A, Sir Mohamed Macan Marker Mawatha
Colombo 03
Sri Lanka

Managers & Secretaries Carsons Management Services (Private) Limited

No. 61, Janadhipathi Mawatha,
Colombo 01.
Sri Lanka
Telephone No: +94-11-4739200
Fax No: +94-11-4739300

Investment Manager Guardian Fund Management Limited

No. 61, Janadhipathi Mawatha,
Colombo 01.
Sri Lanka
Telephone No: +94-11-4739200
Fax No: +94-11-4739385

Registered Office No. 61, Janadhipathi Mawatha,

Colombo 01.
Sri Lanka
Telephone No: +94-11-4739200
Fax No: +94-11-4739300

Corporate Website www.carsoncumberbatch.com