Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
ANNUAL REPORT 2010/2011
FUTURE...
FUTURE...
ANNUAL REPORT 2010/2011
02 03
OUR VISION
OUR MISSION
OUR VALUES
“To be the convenient partner in enhancing the taste and
health needs of the nation”
“To become the largest value added salt supplier in the island
contributing to fulfillment of salt and iodine needs of the nation
by way of extracting best resources from nature using modern
technology and improved productivity while satisfying
stakeholders of every facet”
Customer is valued as the most important party and
the entire processes centre for fulfilling and exceeding
customer needs and wants.
We value the customer centric decision making system
based on evidence rather than management by opinion.
Equal treatment of employees is recognized as a prominent
value of the company.
Existence of favourable working environment and
protection and respect for employees' rights, assurance
equity in reward system.
Employees are valued and recognized as the number one
asset of the company rather than as a liability.
Drivers towards continuous improvements in processes are
recognized as a value in the system.
Team effort is a valued feature of the organization rather
than chasing individual goal achievement.
Recognition and acceptance of social and environmental
responsibilities in all the operations of the company.
THE SHEER DEDICATION AND COMMITMENT BY MANY
TOWARDS THE ATTAINMENT OF THE PROMISED GOALS,
CONTRIBUTED TO THE ACHIEVEMENT OF YOUR
COMPANY'S SUCCESS SO FAR.
THE COMPLETION OF MANY PHASES OF THE GIGANTIC
PROJECTS THAT HAVE BEEN UNDERTAKEN BY YOUR
COMPANY REINFORCES SELF BELIEF AND INSPIRES
TOWARDS ACHIEVING THE GOAL OF YOUR COMPANY
BECOMING THE LARGEST PLAYER IN THE SALT INDUSTRY
IN SRI LANKA.
YOUR COMPANY, ENCAPSULATING THE UNIQUE
BUSINESS STRENGTHS IT IS ENDOWED WITH, MARCHES
ON, HAVING EMBARKED ON THE ROAD TO GAIN
SUPREMACY IN THE SALT INDUSTRY IN SRI LANKA IN
NEAR FUTURE ..........
FUTURE
02 03
OUR VISION
OUR MISSION
OUR VALUES
“To be the convenient partner in enhancing the taste and
health needs of the nation”
“To become the largest value added salt supplier in the island
contributing to fulfillment of salt and iodine needs of the nation
by way of extracting best resources from nature using modern
technology and improved productivity while satisfying
stakeholders of every facet”
Customer is valued as the most important party and
the entire processes centre for fulfilling and exceeding
customer needs and wants.
We value the customer centric decision making system
based on evidence rather than management by opinion.
Equal treatment of employees is recognized as a prominent
value of the company.
Existence of favourable working environment and
protection and respect for employees' rights, assurance
equity in reward system.
Employees are valued and recognized as the number one
asset of the company rather than as a liability.
Drivers towards continuous improvements in processes are
recognized as a value in the system.
Team effort is a valued feature of the organization rather
than chasing individual goal achievement.
Recognition and acceptance of social and environmental
responsibilities in all the operations of the company.
THE SHEER DEDICATION AND COMMITMENT BY MANY
TOWARDS THE ATTAINMENT OF THE PROMISED GOALS,
CONTRIBUTED TO THE ACHIEVEMENT OF YOUR
COMPANY'S SUCCESS SO FAR.
THE COMPLETION OF MANY PHASES OF THE GIGANTIC
PROJECTS THAT HAVE BEEN UNDERTAKEN BY YOUR
COMPANY REINFORCES SELF BELIEF AND INSPIRES
TOWARDS ACHIEVING THE GOAL OF YOUR COMPANY
BECOMING THE LARGEST PLAYER IN THE SALT INDUSTRY
IN SRI LANKA.
YOUR COMPANY, ENCAPSULATING THE UNIQUE
BUSINESS STRENGTHS IT IS ENDOWED WITH, MARCHES
ON, HAVING EMBARKED ON THE ROAD TO GAIN
SUPREMACY IN THE SALT INDUSTRY IN SRI LANKA IN
NEAR FUTURE ..........
FUTURE
NAME OF COMPANY
REGISTERED OFFICE
CONTACT DETAILS
COMPANY REGISTRATION NUMBER
DETAILS OF INCORPORATION
BOARD OF DIRECTORS
AUDITORS TO THE COMPANY
REGISTRARS TO THE COMPANY
SECRETARIES TO THE COMPANY
BANKERS TO THE COMPANY
Raigam Wayamba Salterns PLC
No. 23, Walukarama Road,
Colombo 03.
Tel: 011 2753340-1, 011 4886777
Fax: 011 2753342, E-mail: [email protected]
Web: www.wayambasalterns.lk
PV 10922 PB/PQ
Incorporated as a Private Limited Liability Company under the
Companies Act No. 17 of 1982 on 15 June 2005 in Colombo, and
re-registered under the Companies Act No. 07 of 2007 on 15
January 2009, converted to a Public Company in December 2009.
Later the Company was listed on the Dirisavi Board of the
Colombo Stock Exchange on 29 April 2010 converting into a
Public Listed Company.
Dr. Ravindranath Liyanage
Mr. G.V.P.Ganaka Amarasinghe
Prof. S. P. P. Amaratunga
Mr. T. Dharmarajah
Mr. N. B. W. C. Prashantha
Mr. W.A.Upali Gunawardena
Mr. S. A. Wickramapala
Messrs. Ernst & Young
Chartered Accountants,
201, De Saram Place,
Colombo 10.
Merchant Bank of Sri Lanka PLC
Level 18, Bank of Ceylon Merchant Tower,
No. 28, St. Michael's Road,
Colombo 03.
U.K. Consultants (Pvt) Limited
36/6, Parakum Mawatha,
Nawala Road, Nugegoda.
Tel.: 011 2825072, 011 4873996
Sampath Bank PLC
People's Bank
CORPORATE INFORMATION
CONTENTS
04 05
05
06
08
11
15
17
20
22
24
25
27
28
29
30
31
32
52
56
57
Corporate Information
Message from Chairman
Board of Directors
Management Discussion and Financial Review
Corporate Governance
Annual Report of the Board of Directors
Statement of Directors' Responsibility
Report of the Audit Committee
Report of the Remuneration Committee
Risk Management
Auditors' Report
Balance Sheet
Income Statement
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
Investor Information
Notice of Meeting
Form of Proxy
NAME OF COMPANY
REGISTERED OFFICE
CONTACT DETAILS
COMPANY REGISTRATION NUMBER
DETAILS OF INCORPORATION
BOARD OF DIRECTORS
AUDITORS TO THE COMPANY
REGISTRARS TO THE COMPANY
SECRETARIES TO THE COMPANY
BANKERS TO THE COMPANY
Raigam Wayamba Salterns PLC
No. 23, Walukarama Road,
Colombo 03.
Tel: 011 2753340-1, 011 4886777
Fax: 011 2753342, E-mail: [email protected]
Web: www.wayambasalterns.lk
PV 10922 PB/PQ
Incorporated as a Private Limited Liability Company under the
Companies Act No. 17 of 1982 on 15 June 2005 in Colombo, and
re-registered under the Companies Act No. 07 of 2007 on 15
January 2009, converted to a Public Company in December 2009.
Later the Company was listed on the Dirisavi Board of the
Colombo Stock Exchange on 29 April 2010 converting into a
Public Listed Company.
Dr. Ravindranath Liyanage
Mr. G.V.P.Ganaka Amarasinghe
Prof. S. P. P. Amaratunga
Mr. T. Dharmarajah
Mr. N. B. W. C. Prashantha
Mr. W.A.Upali Gunawardena
Mr. S. A. Wickramapala
Messrs. Ernst & Young
Chartered Accountants,
201, De Saram Place,
Colombo 10.
Merchant Bank of Sri Lanka PLC
Level 18, Bank of Ceylon Merchant Tower,
No. 28, St. Michael's Road,
Colombo 03.
U.K. Consultants (Pvt) Limited
36/6, Parakum Mawatha,
Nawala Road, Nugegoda.
Tel.: 011 2825072, 011 4873996
Sampath Bank PLC
People's Bank
CORPORATE INFORMATION
CONTENTS
04 05
05
06
08
11
15
17
20
22
24
25
27
28
29
30
31
32
52
56
57
Corporate Information
Message from Chairman
Board of Directors
Management Discussion and Financial Review
Corporate Governance
Annual Report of the Board of Directors
Statement of Directors' Responsibility
Report of the Audit Committee
Report of the Remuneration Committee
Risk Management
Auditors' Report
Balance Sheet
Income Statement
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
Investor Information
Notice of Meeting
Form of Proxy
MESSAGE FROM THE CHAIRMAN
continued as planned towards strategic directions of the
company and we are confident in achieving the aim of reducing
salt prices and capturing the mass market by converting
consumer usage habit from crystal salt to table salt which is the
global trend. The research and development activities have been
further extended to develop innovative, value added salt
products, through which a higher profitability and further
establishment of the brand with a wide range of products to
satisfy changing consumer needs are expected.
During the year the company continued with its development
plan in expansion of saltterns as well as increasing
manufacturing capacity of value added salt. The total capital
expenditure incurred by the group during the year amounted to
Rs. 130.3m . This includes purchase of alternative lands in
Puttalam area, construction of reservoirs and crystallization
tanks in existing and newly acquired lands in Puttalam area and
development activities including construction of new table salt
plant and saltern by the subsidiary company Southern Salt
Company (Pvt) Limited at Bata-atha in Hambanthota district.
The management took every effort to keep administrative and
other expenses to their minimum, assuring a higher level of
efficiency. It is highly usual to observe an increase in such
expenditure during any accelerated development drive with
expanded areas which needs a close monitoring mechanism.
Further investments were made in building brand capital with
short term and long term projects. Despite this situation the net
profit recorded an increase of Rs. 6.6m with the increased
revenue and the additional income from short term
investments.
Construction of the Bata-atha saltern and the first phase of
Puttalam project are nearing the completion. As expected the
company managed to collect a primary harvest in the Yala
season of 2011 which is a good indication of the success in
project. The construction of buildings for Bata-atha table salt
manufacturing plant also has reached its final level, and
installation of plant has commenced. We are confident that
commercial production can be commenced by the end of this
year. The construction of new Pure Vacuum Dried (PVD) plant at
Puttalam to manufacture salt by evaporating under controlled
environment ensuring an extra purity and productivity has been
launched. On behalf of the Board of Directors I am happy to
declare that despite issues delaying the allocation of leased
lands, the company has continued all development activities as
planned through alternatives. The shareholders' funds are
strictly utilized with its best advantages and the funds yet to
apply according to the investment plan have been invested in
secure sources until used for intended purposes.
PERFORMANCE
DEVELOPMENT
FUTURE PROSPECTSAs discussed in the Prospectus issued for the Initial Public
Offering took place in year 2010, the grand strategy of the
company is to establish three salt bases in the Southern, Eastern
and Wayamba provinces where centric independent
distribution networks will be set up within each salt base. These
effective and efficient distribution channels will benefit the
company in the future in terms of product affordability and
availability. As discussed in the Prospectus the company is
looking forward to integrate the Periyakarachchi Saltern
Development Project of Raigam Eastern Salt Company (Pvt)
Limited with the ongoing projects in Puttalam and Hambantota
districts, by implementing a suitable scheme of financing. The
Periyakarachchi Saltern Project consists a leasehold government
land in extent approximately 1,805 acres in the vicinity of the
famous Nilaweli tourist destination in the Eastern province. This
will be an ideal opportunity for a multi-faced venture.
Consumer confidence in our brand is the most valuable
strength of the company. I truly appreciate this trust. We could
not have achieved these satisfactory results if not for the
contribution of our energetic team of employees. I sincerely
thank you for your excellent commitment and effort. I take this
opportunity to place on record the invaluable guidance and
support of my fellow members in the Board. I greatly appreciate
the confidence placed on us by our shareholders and on behalf
of the Board of Directors I assure that we will reach greater
heights in the year ahead.
Dr. Ravindranath Liyanage
Chairman
August 16, 2011
APPRECIATION
06 07
MESSAGE FROM THE CHAIRMAN
continued as planned towards strategic directions of the
company and we are confident in achieving the aim of reducing
salt prices and capturing the mass market by converting
consumer usage habit from crystal salt to table salt which is the
global trend. The research and development activities have been
further extended to develop innovative, value added salt
products, through which a higher profitability and further
establishment of the brand with a wide range of products to
satisfy changing consumer needs are expected.
During the year the company continued with its development
plan in expansion of saltterns as well as increasing
manufacturing capacity of value added salt. The total capital
expenditure incurred by the group during the year amounted to
Rs. 130.3m . This includes purchase of alternative lands in
Puttalam area, construction of reservoirs and crystallization
tanks in existing and newly acquired lands in Puttalam area and
development activities including construction of new table salt
plant and saltern by the subsidiary company Southern Salt
Company (Pvt) Limited at Bata-atha in Hambanthota district.
The management took every effort to keep administrative and
other expenses to their minimum, assuring a higher level of
efficiency. It is highly usual to observe an increase in such
expenditure during any accelerated development drive with
expanded areas which needs a close monitoring mechanism.
Further investments were made in building brand capital with
short term and long term projects. Despite this situation the net
profit recorded an increase of Rs. 6.6m with the increased
revenue and the additional income from short term
investments.
Construction of the Bata-atha saltern and the first phase of
Puttalam project are nearing the completion. As expected the
company managed to collect a primary harvest in the Yala
season of 2011 which is a good indication of the success in
project. The construction of buildings for Bata-atha table salt
manufacturing plant also has reached its final level, and
installation of plant has commenced. We are confident that
commercial production can be commenced by the end of this
year. The construction of new Pure Vacuum Dried (PVD) plant at
Puttalam to manufacture salt by evaporating under controlled
environment ensuring an extra purity and productivity has been
launched. On behalf of the Board of Directors I am happy to
declare that despite issues delaying the allocation of leased
lands, the company has continued all development activities as
planned through alternatives. The shareholders' funds are
strictly utilized with its best advantages and the funds yet to
apply according to the investment plan have been invested in
secure sources until used for intended purposes.
PERFORMANCE
DEVELOPMENT
FUTURE PROSPECTSAs discussed in the Prospectus issued for the Initial Public
Offering took place in year 2010, the grand strategy of the
company is to establish three salt bases in the Southern, Eastern
and Wayamba provinces where centric independent
distribution networks will be set up within each salt base. These
effective and efficient distribution channels will benefit the
company in the future in terms of product affordability and
availability. As discussed in the Prospectus the company is
looking forward to integrate the Periyakarachchi Saltern
Development Project of Raigam Eastern Salt Company (Pvt)
Limited with the ongoing projects in Puttalam and Hambantota
districts, by implementing a suitable scheme of financing. The
Periyakarachchi Saltern Project consists a leasehold government
land in extent approximately 1,805 acres in the vicinity of the
famous Nilaweli tourist destination in the Eastern province. This
will be an ideal opportunity for a multi-faced venture.
Consumer confidence in our brand is the most valuable
strength of the company. I truly appreciate this trust. We could
not have achieved these satisfactory results if not for the
contribution of our energetic team of employees. I sincerely
thank you for your excellent commitment and effort. I take this
opportunity to place on record the invaluable guidance and
support of my fellow members in the Board. I greatly appreciate
the confidence placed on us by our shareholders and on behalf
of the Board of Directors I assure that we will reach greater
heights in the year ahead.
Dr. Ravindranath Liyanage
Chairman
August 16, 2011
APPRECIATION
06 07
DR. RAVINDRANATH LIYANAGECHAIRMAN / CEO
Dr. Ravindranath Liyanage is the founder and present Chairman
/ CEO of the Raigam Group and holds a B.Sc. Degree in Business
Administration from the University of Sri Jayewardenepura. His
MBA, specializing in Marketing was obtained from the
University of Colombo and later the Lacrosse University (USA)
conferred him the PhD in Management.
This was followed by numerous other Post Graduate and
professional qualifications such as Diploma in Marketing. Dr.
Liyanage is the first Fellow of the Institute of Marketing in Sri
Lanka and he holds membership of various professional bodies
including Institute of Gemology, Institute of HR Professionals,
and the Association of Accounting Technicians of Sri Lanka.
Starting his career in the private sector, he changed course in
mid career to public sector and changed again to end up
creating the well known, truly Sri Lankan FMCG company in the
land, The Kingdom of Raigam. He was the Platinum Award
winner of FCCISL Entrepreneur of the Year in 2005 and in the
same year won the much coveted CIMA Business Leader of the
Year, thus becoming the first ever entrepreneur to win both
these prestigious awards in the same year. He presently serves as
a Director of Puttalam Salt Limited. Dr. Liyanage is a Faculty
Board Member of the Management Faculty of the University of
Sri Jayewardenepura and a well known lecturer in Management
subjects in many universities and institutions.
BOARD OF DIRECTORS
PROF. S.P.P. AMARATUNGANON - EXECUTIVE DIRECTOR
Prof. Sampath Perera Priyantha Amaratunga, who is presently,
the Dean of the Faculty of Management Studies and
Commerce, University of Sri Jayewardenepura, obtained his B.A
Degree in Economics from the same university and his M.A. in
Economics from the University of Colombo.
Obtaining his M.Sc in Economics of Rural Development from the
Saga National University and Ph.D. in Economics of Rural
Development from Kogoshima National University in Japan,
Prof. Amaratunga counts over 20 years of service as an
academic at the University of Sri Jayewardenepura. He has
published many articles in international and national refereed
journals. In addition, he serves as a consultant to many reputed
companies among which are Sri Lankan Airlines, South Asia
Gateway Terminals and Ceylon Tobacco Company Ltd.
Prof. Amaratunga was the recipient of the prestigious Research
Excellence Award in 2002, awarded by the Keyshu Society of
Rural Economics, Japan, in addition to several other local and
international awards. He is considered as an expert in the field of
Economics with special reference to Rural Development, whose
attention is not focused solely on the university community, but
additionally, he has a wide array of interests and is actively
involved in the development of the country.
MR. G.V.P. GANAKA AMARASINGHEMANAGING DIRECTOR
Mr. Ganegama Vidana Pathiranage Ganaka Amarasinghe
commenced his career at Raigam as the Managing Director of
the group in early 1999. He obtained his first Degree in Business
Administration from the University of Sri Jayewardenepura and
became a Fellow Member of the Institute of Chartered
Accountants, Society of Certified Management Accountants
and The Association of Accounting Technicians of Sri Lanka. For
decades he has held senior positions in private and public
sectors, as Accountant, Financial Analyst, and Finance Manager.
Mr. Amarasinghe is a regular lecturer at the Institute for
Accounting Studies and is a visiting lecturer for many
professional and academic institutions. Presently, he serves as a
Member of the Governing Council of the Institute of Chartered
Accountants of Sri Lanka. He has served as a Member of the
Panel of Judges of National Exports Awards since 2005 and The
Presidential Awards for Travel and Tourism in 2007. He is also a
Director of Puttalam Salt Limited.
MR. T. DHARMARAJAHNON - EXECUTIVE DIRECTOR
Mr. Thiyagarajah Dharmarajah, the present President of the
Association of Accounting Technicians (AAT) of Sri Lanka,
graduated from the University of Sri Jayewardenepura
obtaining a B.Sc. Management (Sp) Degree and counts over 30
years experience in the disciplines of finance and accounting in
the public and private sectors. He is a partner of Amarasekara
and Company, a well recognized firm of Chartered Accountants
in Sri Lanka. Mr. Dharmarajah is well-known and respected in
the field of Finance and Accountancy, who has been in active
involvement in many accounting bodies of Sri Lanka. He holds
the fellow membership of the Institute of Chartered
Accountants of Sri Lanka, the Association of Accounting
Technicians of Sri Lanka, the Institute of Public Finance and
Development Accountancy.
In addition, he holds the Higher National Diploma in
Accountancy – Ceylon Technical College. He is also a member of
the Governing Council of the Institute of Chartered
Accountants of Sri Lanka (ICASL) and a member of the Council
of the University of Sri Jayewardenepura. Mr. Dharmarajah has
been lecturing in Finance and Accountancy for decades and he
is acknowledged as a respected lecturer who has contributed
immensely to produce thousands of qualified Accountants in Sri
Lanka.
DR. RAVINDRANATH LIYANAGECHAIRMAN / CEO
MR. G.V.P. GANAKA AMARASINGHEMANAGING DIRECTOR
MR. T. DHARMARAJAHNON-EXECUTIVE DIRECTOR
PROF. S.P.P. AMARATUNGANON-EXECUTIVE DIRECTOR
MR. W.A. UPALI GUNAWARDENANON-EXECUTIVE DIRECTOR
MR. N.B.W.C. PRASHANTHAEXECUTIVE DIRECTOR
MR. S.A. WICKRAMAPALANON-EXECUTIVE DIRECTOR
08 09
DR. RAVINDRANATH LIYANAGECHAIRMAN / CEO
Dr. Ravindranath Liyanage is the founder and present Chairman
/ CEO of the Raigam Group and holds a B.Sc. Degree in Business
Administration from the University of Sri Jayewardenepura. His
MBA, specializing in Marketing was obtained from the
University of Colombo and later the Lacrosse University (USA)
conferred him the PhD in Management.
This was followed by numerous other Post Graduate and
professional qualifications such as Diploma in Marketing. Dr.
Liyanage is the first Fellow of the Institute of Marketing in Sri
Lanka and he holds membership of various professional bodies
including Institute of Gemology, Institute of HR Professionals,
and the Association of Accounting Technicians of Sri Lanka.
Starting his career in the private sector, he changed course in
mid career to public sector and changed again to end up
creating the well known, truly Sri Lankan FMCG company in the
land, The Kingdom of Raigam. He was the Platinum Award
winner of FCCISL Entrepreneur of the Year in 2005 and in the
same year won the much coveted CIMA Business Leader of the
Year, thus becoming the first ever entrepreneur to win both
these prestigious awards in the same year. He presently serves as
a Director of Puttalam Salt Limited. Dr. Liyanage is a Faculty
Board Member of the Management Faculty of the University of
Sri Jayewardenepura and a well known lecturer in Management
subjects in many universities and institutions.
BOARD OF DIRECTORS
PROF. S.P.P. AMARATUNGANON - EXECUTIVE DIRECTOR
Prof. Sampath Perera Priyantha Amaratunga, who is presently,
the Dean of the Faculty of Management Studies and
Commerce, University of Sri Jayewardenepura, obtained his B.A
Degree in Economics from the same university and his M.A. in
Economics from the University of Colombo.
Obtaining his M.Sc in Economics of Rural Development from the
Saga National University and Ph.D. in Economics of Rural
Development from Kogoshima National University in Japan,
Prof. Amaratunga counts over 20 years of service as an
academic at the University of Sri Jayewardenepura. He has
published many articles in international and national refereed
journals. In addition, he serves as a consultant to many reputed
companies among which are Sri Lankan Airlines, South Asia
Gateway Terminals and Ceylon Tobacco Company Ltd.
Prof. Amaratunga was the recipient of the prestigious Research
Excellence Award in 2002, awarded by the Keyshu Society of
Rural Economics, Japan, in addition to several other local and
international awards. He is considered as an expert in the field of
Economics with special reference to Rural Development, whose
attention is not focused solely on the university community, but
additionally, he has a wide array of interests and is actively
involved in the development of the country.
MR. G.V.P. GANAKA AMARASINGHEMANAGING DIRECTOR
Mr. Ganegama Vidana Pathiranage Ganaka Amarasinghe
commenced his career at Raigam as the Managing Director of
the group in early 1999. He obtained his first Degree in Business
Administration from the University of Sri Jayewardenepura and
became a Fellow Member of the Institute of Chartered
Accountants, Society of Certified Management Accountants
and The Association of Accounting Technicians of Sri Lanka. For
decades he has held senior positions in private and public
sectors, as Accountant, Financial Analyst, and Finance Manager.
Mr. Amarasinghe is a regular lecturer at the Institute for
Accounting Studies and is a visiting lecturer for many
professional and academic institutions. Presently, he serves as a
Member of the Governing Council of the Institute of Chartered
Accountants of Sri Lanka. He has served as a Member of the
Panel of Judges of National Exports Awards since 2005 and The
Presidential Awards for Travel and Tourism in 2007. He is also a
Director of Puttalam Salt Limited.
MR. T. DHARMARAJAHNON - EXECUTIVE DIRECTOR
Mr. Thiyagarajah Dharmarajah, the present President of the
Association of Accounting Technicians (AAT) of Sri Lanka,
graduated from the University of Sri Jayewardenepura
obtaining a B.Sc. Management (Sp) Degree and counts over 30
years experience in the disciplines of finance and accounting in
the public and private sectors. He is a partner of Amarasekara
and Company, a well recognized firm of Chartered Accountants
in Sri Lanka. Mr. Dharmarajah is well-known and respected in
the field of Finance and Accountancy, who has been in active
involvement in many accounting bodies of Sri Lanka. He holds
the fellow membership of the Institute of Chartered
Accountants of Sri Lanka, the Association of Accounting
Technicians of Sri Lanka, the Institute of Public Finance and
Development Accountancy.
In addition, he holds the Higher National Diploma in
Accountancy – Ceylon Technical College. He is also a member of
the Governing Council of the Institute of Chartered
Accountants of Sri Lanka (ICASL) and a member of the Council
of the University of Sri Jayewardenepura. Mr. Dharmarajah has
been lecturing in Finance and Accountancy for decades and he
is acknowledged as a respected lecturer who has contributed
immensely to produce thousands of qualified Accountants in Sri
Lanka.
DR. RAVINDRANATH LIYANAGECHAIRMAN / CEO
MR. G.V.P. GANAKA AMARASINGHEMANAGING DIRECTOR
MR. T. DHARMARAJAHNON-EXECUTIVE DIRECTOR
PROF. S.P.P. AMARATUNGANON-EXECUTIVE DIRECTOR
MR. W.A. UPALI GUNAWARDENANON-EXECUTIVE DIRECTOR
MR. N.B.W.C. PRASHANTHAEXECUTIVE DIRECTOR
MR. S.A. WICKRAMAPALANON-EXECUTIVE DIRECTOR
08 09
MR. W.A. UPALI GUNAWARDENANON - EXECUTIVE DIRECTOR
Mr. Warusapperuma Arachchige Upali Gunawardena is a
Chartered Engineer by profession, the present Chairman of the
Institute of Incorporated Engineers, Sri Lanka and a Fellow of the
Institute of Engineers, Sri Lanka. He holds a Post – Graduate
Diploma in Engineering from the University of Moratuwa and
many other qualifications. After completing initial career in civil
engineering he gained over thirty five years experience with
significant exposure to the salt industry in Sri Lanka. During this
period he held several positions in the management of the
National Salt Corporation and Lanka Salt Ltd, including the
positions of Chief Engineer, General Manager and Consultant.
He was highly involved in the implementation of universal salt
iodization program at the inception in Sri Lanka, and installed
the first Salt Iodization plant in Palavi Saltern donated by
UNICEF. Eng. Upali Gunawardena handled a special assignment
on behalf of the UNICEF in February/March 2005. As a
consultant to the UNICEF he was mandated to assess the
damages to the salterns in the country as a consequence of the
Tsunami. He also participated in programs in managing,
monitoring and controlling of iodine deficiency disorders,
organized by WHO in India, Nepal and Thailand.
MR. S.A. WICKRAMAPALANON - EXECUTIVE DIRECTOR
Mr. Subasinghe Arachchige Wickramapala is currently the
Chairman of Co-operative Leasing Company Ltd and Vice-
Chairman of Co-operative Insurance Company Ltd. He counts
over 35 years experience in the public sector with considerable
exposure to rural banking and co-operatives in Sri Lanka. Mr.
Wickramapala served as an Assistant Commissioner, in the
Department of Co-operative Development of the Government
of Sri Lanka, until 2004. He has also functioned as a Director of
Sri Lanka Co-operative Rural Bank Federation Ltd and as its
Salt Industry in Sri Lanka is a perfect example for inelastic
demand. Though the country is surrounded by the sea and most
of the coastal areas are suitable for salt crystallization, still a
considerable quantity of salt is imported in to Sri Lanka to fill the
gap. Main reasons for this situation was the reluctance of
investment in salt manufacturing ventures due to unstable
economic situation, security issues and the competition from
low priced imports that prevailed for decades. During the recent
years more emphasis can be observed in this industry following
end of the conflict and implementation of favourable fiscal
policies. A remarkable change was observed in consumer
behavior keeping in to world trend of replacing conventional
crystal salt by value added salt like table salt. The main challenge
faced by the industry is the unpredictable changing weather
pattern experienced after the Tsunami.
During the year under review the company continued its
development drive in expansion of salt manufacturing capacity
and refinery which includes new saltern developments,
construction of new factory and also modernization of the
existing facilities strategically located in Puttalam and
Hambantota Districts. Development projects in Hambantota
District are carried out under the wholly owned subsidiary,
Southern Salt Company (Pvt) Limited.
The company continued three saltern development projects
during the year. Objective of these projects is sourcing of raw salt,
the main raw material for manufacture of value added salt
internally. The internal integration of raw material supply is much
cost effective than the present external sources. The long term
strategy of the company is to be the leader in the value added salt
market in Sri Lanka by granting the price advantage to customers
through effective cost management measures. The status of
saltern development activities are detailed below.
DEVELOPMENT DRIVE
DEVELOPMENT OF SALTERNS
MANAGEMENT DISCUSSION
AND FINANCIAL
REVIEW
MR. N.B.W.C. PRASHANTHAEXECUTIVE DIRECTOR
Mr. Nanayakkarawasam Bataduwa Widanalage Chandana
Prashantha is the Director Finance of the company. He holds
B.Sc. (Special) Degree in Business Administration from the
University of Sri Jayewardenepura. He is also a Member of the
Institute of Chartered Accountants of Sri Lanka (ICASL). After
completing his internship at Ernst & Young in 2000, he served in
a few institutions in Sri Lanka and overseas in the field of finance
and accounting. Thereafter joining The Kingdom of Raigam as
the Financial Controller, he was appointed as Director-Finance
of the Raigam Group on 01st January 2006 after holding several
positions in Raigam corporate ladder.
April
0
20
100
60
140
40
120
80
160
180
Oct
ober
July
Januar
y
May
Nove
mber
August
Febru
ary
June
Dec
ember
Septe
mber
Mar
ch
Rai
n F
all i
n m
m
FLUCTUATION OF RAIN FALL IN 2010/11
Month
Chairman, from 2004-2009, and also the Chairman of
Wayamba Co-operative Rural Bank Union Ltd from 1996-
2009. He is a director of Puttalam Salt Ltd.
During his tenure as Managing Director of Puttalam Salt Ltd
(PSL) from 1997 to 2003, he contributed greatly, overseeing
the transition of Sri Lanka Salt Corporation to Puttalam Salt
Limited, for PSL to become one of the most profitable
companies.
10 11
MR. W.A. UPALI GUNAWARDENANON - EXECUTIVE DIRECTOR
Mr. Warusapperuma Arachchige Upali Gunawardena is a
Chartered Engineer by profession, the present Chairman of the
Institute of Incorporated Engineers, Sri Lanka and a Fellow of the
Institute of Engineers, Sri Lanka. He holds a Post – Graduate
Diploma in Engineering from the University of Moratuwa and
many other qualifications. After completing initial career in civil
engineering he gained over thirty five years experience with
significant exposure to the salt industry in Sri Lanka. During this
period he held several positions in the management of the
National Salt Corporation and Lanka Salt Ltd, including the
positions of Chief Engineer, General Manager and Consultant.
He was highly involved in the implementation of universal salt
iodization program at the inception in Sri Lanka, and installed
the first Salt Iodization plant in Palavi Saltern donated by
UNICEF. Eng. Upali Gunawardena handled a special assignment
on behalf of the UNICEF in February/March 2005. As a
consultant to the UNICEF he was mandated to assess the
damages to the salterns in the country as a consequence of the
Tsunami. He also participated in programs in managing,
monitoring and controlling of iodine deficiency disorders,
organized by WHO in India, Nepal and Thailand.
MR. S.A. WICKRAMAPALANON - EXECUTIVE DIRECTOR
Mr. Subasinghe Arachchige Wickramapala is currently the
Chairman of Co-operative Leasing Company Ltd and Vice-
Chairman of Co-operative Insurance Company Ltd. He counts
over 35 years experience in the public sector with considerable
exposure to rural banking and co-operatives in Sri Lanka. Mr.
Wickramapala served as an Assistant Commissioner, in the
Department of Co-operative Development of the Government
of Sri Lanka, until 2004. He has also functioned as a Director of
Sri Lanka Co-operative Rural Bank Federation Ltd and as its
Salt Industry in Sri Lanka is a perfect example for inelastic
demand. Though the country is surrounded by the sea and most
of the coastal areas are suitable for salt crystallization, still a
considerable quantity of salt is imported in to Sri Lanka to fill the
gap. Main reasons for this situation was the reluctance of
investment in salt manufacturing ventures due to unstable
economic situation, security issues and the competition from
low priced imports that prevailed for decades. During the recent
years more emphasis can be observed in this industry following
end of the conflict and implementation of favourable fiscal
policies. A remarkable change was observed in consumer
behavior keeping in to world trend of replacing conventional
crystal salt by value added salt like table salt. The main challenge
faced by the industry is the unpredictable changing weather
pattern experienced after the Tsunami.
During the year under review the company continued its
development drive in expansion of salt manufacturing capacity
and refinery which includes new saltern developments,
construction of new factory and also modernization of the
existing facilities strategically located in Puttalam and
Hambantota Districts. Development projects in Hambantota
District are carried out under the wholly owned subsidiary,
Southern Salt Company (Pvt) Limited.
The company continued three saltern development projects
during the year. Objective of these projects is sourcing of raw salt,
the main raw material for manufacture of value added salt
internally. The internal integration of raw material supply is much
cost effective than the present external sources. The long term
strategy of the company is to be the leader in the value added salt
market in Sri Lanka by granting the price advantage to customers
through effective cost management measures. The status of
saltern development activities are detailed below.
DEVELOPMENT DRIVE
DEVELOPMENT OF SALTERNS
MANAGEMENT DISCUSSION
AND FINANCIAL
REVIEW
MR. N.B.W.C. PRASHANTHAEXECUTIVE DIRECTOR
Mr. Nanayakkarawasam Bataduwa Widanalage Chandana
Prashantha is the Director Finance of the company. He holds
B.Sc. (Special) Degree in Business Administration from the
University of Sri Jayewardenepura. He is also a Member of the
Institute of Chartered Accountants of Sri Lanka (ICASL). After
completing his internship at Ernst & Young in 2000, he served in
a few institutions in Sri Lanka and overseas in the field of finance
and accounting. Thereafter joining The Kingdom of Raigam as
the Financial Controller, he was appointed as Director-Finance
of the Raigam Group on 01st January 2006 after holding several
positions in Raigam corporate ladder.
April
0
20
100
60
140
40
120
80
160
180
Oct
ober
July
Januar
y
May
Nove
mber
August
Febru
ary
June
Dec
ember
Septe
mber
Mar
ch
Rai
n F
all i
n m
m
FLUCTUATION OF RAIN FALL IN 2010/11
Month
Chairman, from 2004-2009, and also the Chairman of
Wayamba Co-operative Rural Bank Union Ltd from 1996-
2009. He is a director of Puttalam Salt Ltd.
During his tenure as Managing Director of Puttalam Salt Ltd
(PSL) from 1997 to 2003, he contributed greatly, overseeing
the transition of Sri Lanka Salt Corporation to Puttalam Salt
Limited, for PSL to become one of the most profitable
companies.
10 11
Construction of Puttalam Palavi saltern was completed during
the year. Development of the Hambantota Bata-atha saltern is
in its final stage. During the Yala season of 2011 a test harvest
was carried out successfully. Development of a saltern is a long
term process. After completion of civil construction it takes
about two to three years for seasoning crystallization areas and
also to collect a sufficient volume of brine. While the procedure
for acquisition of Vanathavilluwa government land on a long
term lease is continued, the company commenced to acquire
suitable alternative lands in order to avoid possible delays in
completion of the total project.
LOCATION STATUS AT THE BEGINNING OF THE
YEAR
NEW ACQUISITIONS
STATUS AT THE END OF THE YEAR
PLANNED
Puttalam – Palavi Saltern 110 acresunder construction
Nil 110 acrescompleted
110 acres
Puttalam Saltern (alternative for
Vanathavilluwa)
Not commenced 35 acres 35 acresunder construction
325 acres
Hambantota – Bata-atha Saltern
204 acres Nil 204 acresnearing completion
204 acres
Total 314 acres 35 acres 349 acres 639 acres
PRODUCTION FACILITIES
One of the main objectives of the company is to capture the
domestic salt market through value added salt products.
Additionally the company is engaged in supplying conventional
crystal salt using the excess capacity. Therefore the main focus
in production strategy is to develop the production capacity in
value added products. Production facilities of the company and
capital investment during the year in this area are detailed
below.
LOCATION STATUS AT THE BEGINNING OF THE YEAR
DEVELOPMENTS DURING THE YEAR
CAPITAL EXPENDITURE DURING THE YEAR (Rs.)
Palavi Table Salt Plant
Completed Process improvement 27,977,613
Palavi Pure Vacuum Dried Palnt
Planning stage Machines under fabrication 11,274,013
Bata-atha Salt Plant
Planning stage Machine installation started 15,336,113
MARKETING DRIVE
PROCESSED SALT
The marketing drive of the company ensures from designing
right quality products to satisfy varying needs of consumers to
availability of same wherever they are demanded. The company
operates with an island wide distribution network which reaches
over 80% of the retail, wholesale and modern trade outlets as
well as industrial users in the country.
In addition to introduction of new products, the company
launched several promotional campaigns during the year.
As a result of gradual conversion of consumer - usage habit from
conventional crystal salt to table salt and other value added
products, a high potential can be expected in processed salt
market. The demand for refined table salt which was limited to
urban areas has now spread to rural markets significantly. The
main barrier to convert the mass market in to table salt is the large
price gap that prevails between table salt and crystal salt in our
market. Our aim is to reduce salt prices with cost advantages
through own salterns and benefits of economies of scale in order
to facilitate a speedy conversion of consumers to value added
salt, where the company is strategically strong.
BRANDS
HUMAN RESOURCES
The company believes in brand strength. Therefore
establishment of brand is one of the priority tasks given to the
marketing division. This effort has been endorsed by creating a
market segment to demand salt in its brand name creating an
additional value to the product. Moving forward the company
introduced the word “Esi – Salt” to conventional common table
salt. Today “Esi” is a unique term known to consumers to
demand company products.
Number of employees at the end of the year under review was
204 compared to 175 in the previous year. Majority of the
employees are engaged in either in field activities or production
under extremely difficult conditions. The company takes every
possible measure in order to address their various needs and
maintain a pleasant working environment.
The company recorded a turnover of Rs. 297.4 million during
the year with an increase of Rs 37.8 million compared to the
previous year. This is an increase of 14.5%. Despite the
significant upward fluctuation experienced in turnover during
the year 2009, the company has maintained its upward trend in
growth during the last five years period. This kind of periodic
fluctuations are common in industries like agriculture and salt
due to high dependence on weather. Due to the satisfactory
national harvest in the Yala season of 2010, the players in salt
market had to adjust their prices downward to face the
competition. Despite bad weather continued thereafter the
unfavourable market conditions including lower price levels in
wholesale market were continued. However the increase in
turnover during the year represents an increase in volume.
The subsidiary company had not commenced commercial
production up to the end of year.
PERFORMANCETURNOVER
12 13
Construction of Puttalam Palavi saltern was completed during
the year. Development of the Hambantota Bata-atha saltern is
in its final stage. During the Yala season of 2011 a test harvest
was carried out successfully. Development of a saltern is a long
term process. After completion of civil construction it takes
about two to three years for seasoning crystallization areas and
also to collect a sufficient volume of brine. While the procedure
for acquisition of Vanathavilluwa government land on a long
term lease is continued, the company commenced to acquire
suitable alternative lands in order to avoid possible delays in
completion of the total project.
LOCATION STATUS AT THE BEGINNING OF THE
YEAR
NEW ACQUISITIONS
STATUS AT THE END OF THE YEAR
PLANNED
Puttalam – Palavi Saltern 110 acresunder construction
Nil 110 acrescompleted
110 acres
Puttalam Saltern (alternative for
Vanathavilluwa)
Not commenced 35 acres 35 acresunder construction
325 acres
Hambantota – Bata-atha Saltern
204 acres Nil 204 acresnearing completion
204 acres
Total 314 acres 35 acres 349 acres 639 acres
PRODUCTION FACILITIES
One of the main objectives of the company is to capture the
domestic salt market through value added salt products.
Additionally the company is engaged in supplying conventional
crystal salt using the excess capacity. Therefore the main focus
in production strategy is to develop the production capacity in
value added products. Production facilities of the company and
capital investment during the year in this area are detailed
below.
LOCATION STATUS AT THE BEGINNING OF THE YEAR
DEVELOPMENTS DURING THE YEAR
CAPITAL EXPENDITURE DURING THE YEAR (Rs.)
Palavi Table Salt Plant
Completed Process improvement 27,977,613
Palavi Pure Vacuum Dried Palnt
Planning stage Machines under fabrication 11,274,013
Bata-atha Salt Plant
Planning stage Machine installation started 15,336,113
MARKETING DRIVE
PROCESSED SALT
The marketing drive of the company ensures from designing
right quality products to satisfy varying needs of consumers to
availability of same wherever they are demanded. The company
operates with an island wide distribution network which reaches
over 80% of the retail, wholesale and modern trade outlets as
well as industrial users in the country.
In addition to introduction of new products, the company
launched several promotional campaigns during the year.
As a result of gradual conversion of consumer - usage habit from
conventional crystal salt to table salt and other value added
products, a high potential can be expected in processed salt
market. The demand for refined table salt which was limited to
urban areas has now spread to rural markets significantly. The
main barrier to convert the mass market in to table salt is the large
price gap that prevails between table salt and crystal salt in our
market. Our aim is to reduce salt prices with cost advantages
through own salterns and benefits of economies of scale in order
to facilitate a speedy conversion of consumers to value added
salt, where the company is strategically strong.
BRANDS
HUMAN RESOURCES
The company believes in brand strength. Therefore
establishment of brand is one of the priority tasks given to the
marketing division. This effort has been endorsed by creating a
market segment to demand salt in its brand name creating an
additional value to the product. Moving forward the company
introduced the word “Esi – Salt” to conventional common table
salt. Today “Esi” is a unique term known to consumers to
demand company products.
Number of employees at the end of the year under review was
204 compared to 175 in the previous year. Majority of the
employees are engaged in either in field activities or production
under extremely difficult conditions. The company takes every
possible measure in order to address their various needs and
maintain a pleasant working environment.
The company recorded a turnover of Rs. 297.4 million during
the year with an increase of Rs 37.8 million compared to the
previous year. This is an increase of 14.5%. Despite the
significant upward fluctuation experienced in turnover during
the year 2009, the company has maintained its upward trend in
growth during the last five years period. This kind of periodic
fluctuations are common in industries like agriculture and salt
due to high dependence on weather. Due to the satisfactory
national harvest in the Yala season of 2010, the players in salt
market had to adjust their prices downward to face the
competition. Despite bad weather continued thereafter the
unfavourable market conditions including lower price levels in
wholesale market were continued. However the increase in
turnover during the year represents an increase in volume.
The subsidiary company had not commenced commercial
production up to the end of year.
PERFORMANCETURNOVER
12 13
PROFITABILITY
Net profit after taxation for the year was Rs. 57.8 million
compared to the corresponding value recorded for the previous
year Rs. 51.2 million. This was an increase of 12.8% compared to
the previous year. The subsidiary company is yet to commence
commercial operations, and therefore the revenue consists of
the sales and other income of the parent company only. An
increase has been recorded in marketing and administrative
expenses due to the accelerated expansion drive. As explained in
the previous year it's a natural phenomenon during the
development stage of any business. However the interest
income and the controlled cost of production have been resulted
in the positive results during the year.
The Group's Earnings per share (EPS) stood at Rs. 0.21 for the
financial year under review. This is a 16.6% increase over the
previous year's EPS. Further growth in the EPS can be anticipated
when the new capital raised at the Initial Public Offering (IPO)
starts yielding through the investments that have been planned
out in near future.
EARNINGS PER SHARE
FINANCIAL POSITION
MARKET PRICE AND DIVIDEND
MOVING FORWARD
Net assets value of the Group was grown by Rs. 57.8 million
during the year. The investment in capital assets during the year
was Rs. 130.3 million compared to the previous year's
investment of Rs. 46.3 million. The cash and cash equivalent
value at the beginning of the year shows an unusual value of Rs.
1,103.3 million due to the over subscribed funds at the IPO
launched in March 2010. The corresponding liability is shown
under trade and other payables. Funds raised from the IPO were
invested in medium term fixed deposits until they are used for
intended purposes. Borrowing at the end of the year includes
bank overdrafts for the value of Rs. 108.2 million since the
developments were funded through short term facilities
negotiated at attractive rates, until the fixed deposits are
matured. The value of fixed deposits on 31 March 2011reported
to Rs. 150 million.
Share price of the company behaved in a stable manner during
the year recording Rs.5.10 and Rs. 3.70 the highest and lowest
respectively. Considering the Group's earning per share Rs.
0.21 for the year, the directors have recommended a final
dividend of Rs. 0.12 per share, to be paid in September 2011.
The company expects to open the two salterns at Puttalam and
Bata-atha for commercial production in the latter part of
2011/12. The initial harvest of salt from these projects, though it
is not at full capacity will make a substantial contribution to
reduce cost of production of table salt and be more competitive
in the market. Further the new salt refinery installed at the Bata-
atha Industrial Zone is to be commissioned soon. The distinct
advantage of this project is the benefit on transport cost
connected with catering to the demand in Southern province.
And also the total salt requirement is self generated. The
vacuum evaporation salt plant is under construction at Palavi,
Puttalam. Year 2011/ 12 is expected to be a milestone year in
the company's development drive as four major projects are to
be completed shortly. Blessings of nature with weather
conditions favourable to the industry will be a definite success
factor.
TURNOVER (Rs. Mn.)
0
2007 2008 2009 2010 2011
200
100
300
400
50
250
150
350
450
NAME OF THE DIRECTOR Ind
Dr. Ravindranath Liyanage √ - - 12
Mr. G.V.P. Ganaka Amarasinghe √ - - 12
Mr. N.B.W.C. Prashantha √ - - 12
Prof. S.P.P. Amaratunga - √ √ 11
Mr. T. Dharmarajah - √ √ 12
Mr. S.A. Wickramapala - √ √ 10
Mr. W.A. Upali Gunawardena - √ √ 11
EX
EC
UTIV
E
NO
N-E
XEC
UTIV
E
IND
EPEN
DEN
T
NO
. O
F M
EETIN
GS
The Board of Directors is responsible for the governance of the
company, in a manner that protects the rights and interests of
the shareholders where corporate governance practices come
into play in the company. Corporate governance is understood
as the manner in which a corporate entity directs and controls
its common affairs with respect to all stakeholders. There is no
single model or set of structures which manifest the concept of
good corporate governance. It is in effect the rules and
regulations that govern the relationship between all
stakeholders in the system.
The Board meets once every month. Its principal focus is the
overall strategic direction, development and control of the
company. The Board of Directors of the company comprises
seven (07) Directors, consisting three (03) Executive Directors
and four (04) Non- Executive Independent Directors. Out of the
twelve Board Meetings held for the financial year ending 31
March 2011, the Directors' attendance has been shown in the
below table.
COMPOSITION OF THE BOARD
CORPORATEGOVERNANCE
STRATEGIC DIRECTION ANDCORPORATE STRUCTURE
INTERNAL CONTROL AND RISK MANAGEMENT
The company strongly pursues the direction identified and laid
down in its Strategic Plan taking into account the Current
Business and Political Environment. The company has recently
benefited form initiatives such as Information Technology,
Human Resources and Sourcing.
The Board is responsible for the company's systems of the
internal control and risk management and for reviewing the
effectiveness of those systems. Such systems are designed to
14 15
PROFIT AFTER TAX (Rs. Mn.)
2007
0
80
160
20
100
180
40
120
200
60
140
2008 2009 2010 2011
PROFITABILITY
Net profit after taxation for the year was Rs. 57.8 million
compared to the corresponding value recorded for the previous
year Rs. 51.2 million. This was an increase of 12.8% compared to
the previous year. The subsidiary company is yet to commence
commercial operations, and therefore the revenue consists of
the sales and other income of the parent company only. An
increase has been recorded in marketing and administrative
expenses due to the accelerated expansion drive. As explained in
the previous year it's a natural phenomenon during the
development stage of any business. However the interest
income and the controlled cost of production have been resulted
in the positive results during the year.
The Group's Earnings per share (EPS) stood at Rs. 0.21 for the
financial year under review. This is a 16.6% increase over the
previous year's EPS. Further growth in the EPS can be anticipated
when the new capital raised at the Initial Public Offering (IPO)
starts yielding through the investments that have been planned
out in near future.
EARNINGS PER SHARE
FINANCIAL POSITION
MARKET PRICE AND DIVIDEND
MOVING FORWARD
Net assets value of the Group was grown by Rs. 57.8 million
during the year. The investment in capital assets during the year
was Rs. 130.3 million compared to the previous year's
investment of Rs. 46.3 million. The cash and cash equivalent
value at the beginning of the year shows an unusual value of Rs.
1,103.3 million due to the over subscribed funds at the IPO
launched in March 2010. The corresponding liability is shown
under trade and other payables. Funds raised from the IPO were
invested in medium term fixed deposits until they are used for
intended purposes. Borrowing at the end of the year includes
bank overdrafts for the value of Rs. 108.2 million since the
developments were funded through short term facilities
negotiated at attractive rates, until the fixed deposits are
matured. The value of fixed deposits on 31 March 2011reported
to Rs. 150 million.
Share price of the company behaved in a stable manner during
the year recording Rs.5.10 and Rs. 3.70 the highest and lowest
respectively. Considering the Group's earning per share Rs.
0.21 for the year, the directors have recommended a final
dividend of Rs. 0.12 per share, to be paid in September 2011.
The company expects to open the two salterns at Puttalam and
Bata-atha for commercial production in the latter part of
2011/12. The initial harvest of salt from these projects, though it
is not at full capacity will make a substantial contribution to
reduce cost of production of table salt and be more competitive
in the market. Further the new salt refinery installed at the Bata-
atha Industrial Zone is to be commissioned soon. The distinct
advantage of this project is the benefit on transport cost
connected with catering to the demand in Southern province.
And also the total salt requirement is self generated. The
vacuum evaporation salt plant is under construction at Palavi,
Puttalam. Year 2011/ 12 is expected to be a milestone year in
the company's development drive as four major projects are to
be completed shortly. Blessings of nature with weather
conditions favourable to the industry will be a definite success
factor.
TURNOVER (Rs. Mn.)
0
2007 2008 2009 2010 2011
200
100
300
400
50
250
150
350
450
NAME OF THE DIRECTOR Ind
Dr. Ravindranath Liyanage √ - - 12
Mr. G.V.P. Ganaka Amarasinghe √ - - 12
Mr. N.B.W.C. Prashantha √ - - 12
Prof. S.P.P. Amaratunga - √ √ 11
Mr. T. Dharmarajah - √ √ 12
Mr. S.A. Wickramapala - √ √ 10
Mr. W.A. Upali Gunawardena - √ √ 11
EX
EC
UTIV
E
NO
N-E
XEC
UTIV
E
IND
EPEN
DEN
T
NO
. O
F M
EETIN
GS
The Board of Directors is responsible for the governance of the
company, in a manner that protects the rights and interests of
the shareholders where corporate governance practices come
into play in the company. Corporate governance is understood
as the manner in which a corporate entity directs and controls
its common affairs with respect to all stakeholders. There is no
single model or set of structures which manifest the concept of
good corporate governance. It is in effect the rules and
regulations that govern the relationship between all
stakeholders in the system.
The Board meets once every month. Its principal focus is the
overall strategic direction, development and control of the
company. The Board of Directors of the company comprises
seven (07) Directors, consisting three (03) Executive Directors
and four (04) Non- Executive Independent Directors. Out of the
twelve Board Meetings held for the financial year ending 31
March 2011, the Directors' attendance has been shown in the
below table.
COMPOSITION OF THE BOARD
CORPORATEGOVERNANCE
STRATEGIC DIRECTION ANDCORPORATE STRUCTURE
INTERNAL CONTROL AND RISK MANAGEMENT
The company strongly pursues the direction identified and laid
down in its Strategic Plan taking into account the Current
Business and Political Environment. The company has recently
benefited form initiatives such as Information Technology,
Human Resources and Sourcing.
The Board is responsible for the company's systems of the
internal control and risk management and for reviewing the
effectiveness of those systems. Such systems are designed to
14 15
PROFIT AFTER TAX (Rs. Mn.)
2007
0
80
160
20
100
180
40
120
200
60
140
2008 2009 2010 2011
manage, rather than eliminate, the risk of failure to achieve
business objectives. Any system can provide only reasonable and
not absolute assurance against material misstatements or losses.
It is our policy for all Directors to attend the AGM, if at all
possible. Whilst, this may not always be achievable, under
normal circumstances this means the Chairman and Directors
are available to answer questions.
Established procedures ensure the timely release of share price
sensitive information and the publication of financial results and
regulatory financial statements.
To reinforce our commitment to our policy to achieve best
practice in our standards of business integrity Raigam Wayamba
Salterns PLC has communicated its Best Business Practices across
the company.
It now better reflects Raigam Wayamba Salterns PLC's growing
operations and the increasing expectations in the areas of
corporate governance and business practice standards.
Members:
Mr. T. Dharmarajah (Head)
Prof. S.P.P. Amaratunga
Mr. W.A.U. Gunawardena
The Audit Committee is comprised of three (03) Non-Executive
Directors of the Board, headed by Mr. Dharmarajah. The Audit
Committee closely examines all internal audit reports and
ensures appropriate follow up action is taken on the comments
and recommendations made in these reports.
Members:
Mr. W.A.U. Gunawardena (Head)
Prof. S.P.P. Amaratunga
Mr. S.A. Wickramapala
This committee recommends to the Board of Directors of the
company the remuneration payable to the executive staff in
managerial category and above. The Board of Directors will
make the final determination upon consideration of such
recommendations. Prior to the appointment of the
Remuneration Committee the matters pertaining to the
remuneration was determined by the Board of Directors of the
RELATIONSHIP WITH SHAREHOLDERS
BEST BUSINESS PRACTICES
COMMITTEESBOARD AUDIT COMMITTEE
REMUNERATION COMMITTEE
company. The remuneration of the Executive Directors will be
based on market rates and the remuneration of the Non
Executive Directors will be an amount per Board sitting.
The Board makes every endeavor to ensure that the business
complies with all laws and regulations.
The Board of Directors requires that financial statements of the
company are prepared in accordance with the Sri Lanka
Accounting Standards and in accordance with the requirements
of the Colombo Stock Exchange. Maximum information is
provided to shareholders and full disclosure is made subject only
to any sensitive information, which could directly impact the
business of the company.
DISCLOSURE OF INFORMATION AND COMPLIANCE
The Directors of Raigam Wayamba Salterns PLC have pleasure
in presenting to the Members, their Report together with the
Audited Financial Statements of the company for the year
ended 31 March 2011 and the Auditor's Report thereon.
The details set out herein provide pertinent information
required by the Companies Act No. 7 of 2007, Listing Rules of
the Colombo Stock Exchange, Securities Exchange Commission
and are guided by recommended best Accounting Practices.
The Turnover of the company was Rs: 297,411,339 and a
composition of Revenue is given in Note 03 to the financial
statements.
For the year ended 31 March,
2011 2010
Rs. Rs.
Turnover 297,411,339 259,531,518
Gross Profit 136,002,558 115,952,873
Profit Before Tax 64,161,794 51,256,027
Profit After Tax 57,865,492 51,256,027
There were no new investments during the year. However cash
injections made to the company's fully owned subsidiary;
Southern Salt Company (Pvt) Ltd was converted to equity under
the subsidiary which has been accounted as Investment in
subsidiary in the company's financial statements, amounting to
Rs. 50 M.
The total capital expenditure incurred on the acquisition of
during the financial year
amounted to Rs: 130,359,317 (2010 – Rs. 46,321,598), out of
which expenditure on Salterns and Field Development amounts
to Rs. 35,555,746 (2010 - Rs. 17,869,239). Further information
relating to the movement of is
given in Note 04 to the financial statements. Capital
expenditure has been financed by either long or short term
borrowing and or internally generated funds.
The Stated Capital of the company as at 31 March 2011 was Rs:
604,414,640. Details of the Stated Capital are given in Note 09
to the financial statements.
OPERATIONAL REVIEWTURNOVER
FINANCIAL RESULTS
INVESTMENTS
PROPERTY, PLANT AND EQUIPMENT
STATED CAPITAL
property, plant and equipment
property, plant and equipment
ANNUAL REPORT OF
THE BOARD OFDIRECTORS
16 17
manage, rather than eliminate, the risk of failure to achieve
business objectives. Any system can provide only reasonable and
not absolute assurance against material misstatements or losses.
It is our policy for all Directors to attend the AGM, if at all
possible. Whilst, this may not always be achievable, under
normal circumstances this means the Chairman and Directors
are available to answer questions.
Established procedures ensure the timely release of share price
sensitive information and the publication of financial results and
regulatory financial statements.
To reinforce our commitment to our policy to achieve best
practice in our standards of business integrity Raigam Wayamba
Salterns PLC has communicated its Best Business Practices across
the company.
It now better reflects Raigam Wayamba Salterns PLC's growing
operations and the increasing expectations in the areas of
corporate governance and business practice standards.
Members:
Mr. T. Dharmarajah (Head)
Prof. S.P.P. Amaratunga
Mr. W.A.U. Gunawardena
The Audit Committee is comprised of three (03) Non-Executive
Directors of the Board, headed by Mr. Dharmarajah. The Audit
Committee closely examines all internal audit reports and
ensures appropriate follow up action is taken on the comments
and recommendations made in these reports.
Members:
Mr. W.A.U. Gunawardena (Head)
Prof. S.P.P. Amaratunga
Mr. S.A. Wickramapala
This committee recommends to the Board of Directors of the
company the remuneration payable to the executive staff in
managerial category and above. The Board of Directors will
make the final determination upon consideration of such
recommendations. Prior to the appointment of the
Remuneration Committee the matters pertaining to the
remuneration was determined by the Board of Directors of the
RELATIONSHIP WITH SHAREHOLDERS
BEST BUSINESS PRACTICES
COMMITTEESBOARD AUDIT COMMITTEE
REMUNERATION COMMITTEE
company. The remuneration of the Executive Directors will be
based on market rates and the remuneration of the Non
Executive Directors will be an amount per Board sitting.
The Board makes every endeavor to ensure that the business
complies with all laws and regulations.
The Board of Directors requires that financial statements of the
company are prepared in accordance with the Sri Lanka
Accounting Standards and in accordance with the requirements
of the Colombo Stock Exchange. Maximum information is
provided to shareholders and full disclosure is made subject only
to any sensitive information, which could directly impact the
business of the company.
DISCLOSURE OF INFORMATION AND COMPLIANCE
The Directors of Raigam Wayamba Salterns PLC have pleasure
in presenting to the Members, their Report together with the
Audited Financial Statements of the company for the year
ended 31 March 2011 and the Auditor's Report thereon.
The details set out herein provide pertinent information
required by the Companies Act No. 7 of 2007, Listing Rules of
the Colombo Stock Exchange, Securities Exchange Commission
and are guided by recommended best Accounting Practices.
The Turnover of the company was Rs: 297,411,339 and a
composition of Revenue is given in Note 03 to the financial
statements.
For the year ended 31 March,
2011 2010
Rs. Rs.
Turnover 297,411,339 259,531,518
Gross Profit 136,002,558 115,952,873
Profit Before Tax 64,161,794 51,256,027
Profit After Tax 57,865,492 51,256,027
There were no new investments during the year. However cash
injections made to the company's fully owned subsidiary;
Southern Salt Company (Pvt) Ltd was converted to equity under
the subsidiary which has been accounted as Investment in
subsidiary in the company's financial statements, amounting to
Rs. 50 M.
The total capital expenditure incurred on the acquisition of
during the financial year
amounted to Rs: 130,359,317 (2010 – Rs. 46,321,598), out of
which expenditure on Salterns and Field Development amounts
to Rs. 35,555,746 (2010 - Rs. 17,869,239). Further information
relating to the movement of is
given in Note 04 to the financial statements. Capital
expenditure has been financed by either long or short term
borrowing and or internally generated funds.
The Stated Capital of the company as at 31 March 2011 was Rs:
604,414,640. Details of the Stated Capital are given in Note 09
to the financial statements.
OPERATIONAL REVIEWTURNOVER
FINANCIAL RESULTS
INVESTMENTS
PROPERTY, PLANT AND EQUIPMENT
STATED CAPITAL
property, plant and equipment
property, plant and equipment
ANNUAL REPORT OF
THE BOARD OFDIRECTORS
16 17
DONATIONS
TAXATION
MAJOR SHAREHOLDERS
DIRECTORS
DIRECTORS' INTEREST IN CONTRACTS WITH
THE COMPANY
DIRECTORS' REMUNERATION AND OTHER
BENEFITS
The donations made during the year by the company amounted
to Rs. 389,950 (2010 - Rs. 36,980).
Pursuant to agreement dated 20 March 2006 entered into with
Board of Investment under Section 17 of the Board of
Investment Law, the Company is exempt from the business of
manufacturing for a period of 8 years from year 2007. This
exemption expires on the 2nd of March 2015 and for the
immediately succeeding two years the Company is liable to pay
income tax at the rate of 10% and thereafter at the rate of 20%.
The details of 20 major shareholders of the company as at 31
March 2011 have been set out under "Investor information".
The names of the Directors who held office during the year are
given below. Their brief profile has been set out under the
content of "Board of Directors."
Names
Dr.Ravindranath Liyanage
Mr.G.V.P.G. Amarasinghe
Prof. S.P.P.Amarathunga
Mr.T.Dharmarajah
Mr.N.B.W.C. Prashantha
Mr.W.A. Upali Gunawardena
Mr.S.A.Wickramapala
Directors' share holding of the company as at 31 March 2011
is as follows.
Mr.G.V.P.G. Amarasinghe 250,000 0.08%
Mr.N.B.W.C. Prashantha 408,100 0.14%
The remuneration of the Directors for the financial year ended st31 March 2011 is Rs.5,081,000 (2010 - Rs. 90,000).
Directors' interest in contracts in relation to transactions with
related entities, and other related disclosures are stated in Note
22 to the financial statements.
As required by the Companies Act No 07 of 2007 an Interest
Register is maintained by the company.
Name of the Director
DIRECTORS' INTERESTS IN SHARES
Number Percentage
SOLVENCY TEST
'
Your directors have made an assessment of the Solvency of the
company, immediately after the proposed dividend and confirm
that the company satisfies the Solvency Test as required by the
Section 57 of Companies Act No.7 of 2007.
The Directors recommend that a final dividend of Cents 12 per
share on the 282,207,320 shares issued as the final dividend for
the year 2010 / 11. The dividend to be paid out of profits, will be
subject to Withholding tax.
DIVIDEND
ENVIRONMENTAL PROTECTION
EMPLOYMENT POLICY
STATUTORY PAYMENTS
POST BALANCE SHEET EVENTS
INTERNAL CONTROLS
DIRECTORS RESPONSIBILITY FOR
FINANCIAL REPORTING
AUDITORS
The company activities may have indirect effect on the
environment. It is the policy of the company to minimize any
adverse effects as much as possible and creating awareness
among staff on current global environment threats.
The company's recruitment and employment policy is non
discriminatory. Employee appraisals are carried out by the
respective Departmental Heads annually in order to evaluate
their performance and realize potential to benefit the company
and employees.
The Directors, to the best of their knowledge and belief, are
satisfied that all statutory payments have been made up to date.
No circumstances have arisen since the Balance Sheet date,
which would require adjustment or disclosure in the financial
statements.
The Board has overall responsibility for the company's system of
internal controls. Although no system of internal control can
provide absolute assurance against material misstatement or
loss, the company's internal control system has been designed
to provide the Directors with reasonable assurance that assets
are safeguarded, transactions properly authorised and recorded
and material errors and irregularities either prevented or
detected within a reasonable period of time.
The Statement of Director's Responsibility is given in this report.
The financial statements for the year ended 31 March 2011
have been audited by Messrs. Ernst & Young, Chartered
Accountants in accordance with the Companies Act No. 7 of
2007. A resolution proposing re-appointment of Messrs. Ernst &
Young as Auditors to the company and authorizing the Directors
of the company to fix their remuneration will be forwarded at
the Annual General Meeting.
The Audit Fees of Messrs. Ernst & Young for the current year was
Rs. 190,600 (2010 - Rs. 118,000) was paid by the company. As
far as the Directors were aware the Auditors do not have any
relationship other than that of an Auditor with the company.
The Annual General Meeting will be held at 9.30 a.m. on 15
September 2011 at the Auditorium of the Institute of Chartered
Accountants of Sri Lanka. The notice of Annual General Meeting
is attached hereto the report.
By Order of the Board
16 August, 2011
ANNUAL GENERAL MEETING
Dr Ravindranath Liyanage
Chairman / CEO
G.V.P Ganaka Amarasinghe
Managing Director
18 19
DONATIONS
TAXATION
MAJOR SHAREHOLDERS
DIRECTORS
DIRECTORS' INTEREST IN CONTRACTS WITH
THE COMPANY
DIRECTORS' REMUNERATION AND OTHER
BENEFITS
The donations made during the year by the company amounted
to Rs. 389,950 (2010 - Rs. 36,980).
Pursuant to agreement dated 20 March 2006 entered into with
Board of Investment under Section 17 of the Board of
Investment Law, the Company is exempt from the business of
manufacturing for a period of 8 years from year 2007. This
exemption expires on the 2nd of March 2015 and for the
immediately succeeding two years the Company is liable to pay
income tax at the rate of 10% and thereafter at the rate of 20%.
The details of 20 major shareholders of the company as at 31
March 2011 have been set out under "Investor information".
The names of the Directors who held office during the year are
given below. Their brief profile has been set out under the
content of "Board of Directors."
Names
Dr.Ravindranath Liyanage
Mr.G.V.P.G. Amarasinghe
Prof. S.P.P.Amarathunga
Mr.T.Dharmarajah
Mr.N.B.W.C. Prashantha
Mr.W.A. Upali Gunawardena
Mr.S.A.Wickramapala
Directors' share holding of the company as at 31 March 2011
is as follows.
Mr.G.V.P.G. Amarasinghe 250,000 0.08%
Mr.N.B.W.C. Prashantha 408,100 0.14%
The remuneration of the Directors for the financial year ended st31 March 2011 is Rs.5,081,000 (2010 - Rs. 90,000).
Directors' interest in contracts in relation to transactions with
related entities, and other related disclosures are stated in Note
22 to the financial statements.
As required by the Companies Act No 07 of 2007 an Interest
Register is maintained by the company.
Name of the Director
DIRECTORS' INTERESTS IN SHARES
Number Percentage
SOLVENCY TEST
'
Your directors have made an assessment of the Solvency of the
company, immediately after the proposed dividend and confirm
that the company satisfies the Solvency Test as required by the
Section 57 of Companies Act No.7 of 2007.
The Directors recommend that a final dividend of Cents 12 per
share on the 282,207,320 shares issued as the final dividend for
the year 2010 / 11. The dividend to be paid out of profits, will be
subject to Withholding tax.
DIVIDEND
ENVIRONMENTAL PROTECTION
EMPLOYMENT POLICY
STATUTORY PAYMENTS
POST BALANCE SHEET EVENTS
INTERNAL CONTROLS
DIRECTORS RESPONSIBILITY FOR
FINANCIAL REPORTING
AUDITORS
The company activities may have indirect effect on the
environment. It is the policy of the company to minimize any
adverse effects as much as possible and creating awareness
among staff on current global environment threats.
The company's recruitment and employment policy is non
discriminatory. Employee appraisals are carried out by the
respective Departmental Heads annually in order to evaluate
their performance and realize potential to benefit the company
and employees.
The Directors, to the best of their knowledge and belief, are
satisfied that all statutory payments have been made up to date.
No circumstances have arisen since the Balance Sheet date,
which would require adjustment or disclosure in the financial
statements.
The Board has overall responsibility for the company's system of
internal controls. Although no system of internal control can
provide absolute assurance against material misstatement or
loss, the company's internal control system has been designed
to provide the Directors with reasonable assurance that assets
are safeguarded, transactions properly authorised and recorded
and material errors and irregularities either prevented or
detected within a reasonable period of time.
The Statement of Director's Responsibility is given in this report.
The financial statements for the year ended 31 March 2011
have been audited by Messrs. Ernst & Young, Chartered
Accountants in accordance with the Companies Act No. 7 of
2007. A resolution proposing re-appointment of Messrs. Ernst &
Young as Auditors to the company and authorizing the Directors
of the company to fix their remuneration will be forwarded at
the Annual General Meeting.
The Audit Fees of Messrs. Ernst & Young for the current year was
Rs. 190,600 (2010 - Rs. 118,000) was paid by the company. As
far as the Directors were aware the Auditors do not have any
relationship other than that of an Auditor with the company.
The Annual General Meeting will be held at 9.30 a.m. on 15
September 2011 at the Auditorium of the Institute of Chartered
Accountants of Sri Lanka. The notice of Annual General Meeting
is attached hereto the report.
By Order of the Board
16 August, 2011
ANNUAL GENERAL MEETING
Dr Ravindranath Liyanage
Chairman / CEO
G.V.P Ganaka Amarasinghe
Managing Director
18 19
As stipulated by The Companies Act No. 07 of 2007, Directors
are responsible for the preparation and presentation of financial
statements comprising a Profit and Loss Account for the year
and a Balance Sheet which presents a true and fair view of the
state of affairs of the company as at the end of the financial year,
which have to be placed before the AGM.
In keeping with the provisions under the above Act, the
Directors of Raigam Wayamba Salterns PLC, acknowledge their
responsibility in relation to financial reporting of the company.
The responsibilities differ from those of its Auditors, Messrs
Ernst & Young, which are set out in their report.
The financial statements of the company for the year ended 31
March 2011 included in this report, have been prepared and
presented in accordance with the Sri Lanka Accounting
Standards, and they provide the information as required by the
Companies Act No. 7 of 2007, Sri Lanka Accounting Standards
and the Listing Rules of the Colombo Stock Exchange. The
Directors confirm that suitable accounting policies have been
used and applied consistently, and that all applicable accounting
standards have been followed in the preparation of the financial
statements. All material deviations from these standards if any
have been disclosed and explained. The judgments and
estimates made in the preparation of these financial statements
are reasonable and prudent.
The Directors confirm their responsibility for ensuring that the
company maintains accounting records, which are sufficient to
prepare financial statements that disclose with reasonable
accuracy of the financial position of the company. They also
confirm their responsibility towards ensuring that the financial
statements presented in the Annual Report give a true and fair
view of the state of affairs of the company as at 31 March 2011
and that of the profit for the year then ended.
The overall responsibility for the company's internal control
systems lies with the Directors. Whilst recognizing the fact that
there is no single system of internal control that could provide
absolute assurance against material misstatements and frauds,
the Directors confirm that the prevalent internal control systems
instituted by them and which comprise internal checks, internal
audit and financial and other controls are so designed that,
there is a reasonable assurance that all assets are safeguarded
and transactions properly authorized and recorded, so that
material misstatements and irregularities are either prevented or
detected within a reasonable period of time.
The Directors are of the view that the company has adequate
resources to continue operations in the foreseeable future, and
have continued to use the going concern basis in the
preparation of these financial statements.
STATEMENT OF DIRECTORS'
RESPONSIBILITY
The Directors have provided the Auditors Messrs. Ernst & Young,
Chartered Accountants with every opportunity to carry out
reviews and tests that they considered appropriate and
necessary for the performance of their responsibilities. The
Auditors have examined the financial statements together with
all financial records and related data they may have considered
to be appropriate to enable them to express their opinion.
By Oder of the Board
Dr. Ravindranath Liyanage
Chairman / CEO
16 August, 2011
20 21
As stipulated by The Companies Act No. 07 of 2007, Directors
are responsible for the preparation and presentation of financial
statements comprising a Profit and Loss Account for the year
and a Balance Sheet which presents a true and fair view of the
state of affairs of the company as at the end of the financial year,
which have to be placed before the AGM.
In keeping with the provisions under the above Act, the
Directors of Raigam Wayamba Salterns PLC, acknowledge their
responsibility in relation to financial reporting of the company.
The responsibilities differ from those of its Auditors, Messrs
Ernst & Young, which are set out in their report.
The financial statements of the company for the year ended 31
March 2011 included in this report, have been prepared and
presented in accordance with the Sri Lanka Accounting
Standards, and they provide the information as required by the
Companies Act No. 7 of 2007, Sri Lanka Accounting Standards
and the Listing Rules of the Colombo Stock Exchange. The
Directors confirm that suitable accounting policies have been
used and applied consistently, and that all applicable accounting
standards have been followed in the preparation of the financial
statements. All material deviations from these standards if any
have been disclosed and explained. The judgments and
estimates made in the preparation of these financial statements
are reasonable and prudent.
The Directors confirm their responsibility for ensuring that the
company maintains accounting records, which are sufficient to
prepare financial statements that disclose with reasonable
accuracy of the financial position of the company. They also
confirm their responsibility towards ensuring that the financial
statements presented in the Annual Report give a true and fair
view of the state of affairs of the company as at 31 March 2011
and that of the profit for the year then ended.
The overall responsibility for the company's internal control
systems lies with the Directors. Whilst recognizing the fact that
there is no single system of internal control that could provide
absolute assurance against material misstatements and frauds,
the Directors confirm that the prevalent internal control systems
instituted by them and which comprise internal checks, internal
audit and financial and other controls are so designed that,
there is a reasonable assurance that all assets are safeguarded
and transactions properly authorized and recorded, so that
material misstatements and irregularities are either prevented or
detected within a reasonable period of time.
The Directors are of the view that the company has adequate
resources to continue operations in the foreseeable future, and
have continued to use the going concern basis in the
preparation of these financial statements.
STATEMENT OF DIRECTORS'
RESPONSIBILITY
The Directors have provided the Auditors Messrs. Ernst & Young,
Chartered Accountants with every opportunity to carry out
reviews and tests that they considered appropriate and
necessary for the performance of their responsibilities. The
Auditors have examined the financial statements together with
all financial records and related data they may have considered
to be appropriate to enable them to express their opinion.
By Oder of the Board
Dr. Ravindranath Liyanage
Chairman / CEO
16 August, 2011
20 21
The Audit Committee appointed by and responsible to the Board
of Directors, comprises three members namely,
Mr. T. Dharmarajah, Prof. S.P.P. Amarathunga and Mr. W.A.U.
Gunawardana, all being Non-Executive Independent Directors
of the company. The Committee is chaired by Mr. T. Dharmarajah,
a member of the Institute of Chartered Accountants of Sri Lanka.
All members of the Audit Committee have requisite knowledge to
carry-out their roles effectively and to discuss matters that come
within their purview independently and professionally.
The Purpose of the Audit Committee is to:
1. Assist the Board of Directors in fulfilling its overall
responsibilities for the financial reporting process
2. Review the system of internal control and risk management
3. Monitor the effectiveness of the internal audit function
4. Review the company's process for monitoring compliance
with laws and regulations
5. Review the independence and performance of the external
auditors
6. To make recommendations to the Board on the
appointment of external auditors and recommend their
remuneration and terms of engagement
The Principal activities of the Committee during the year are
detailed below.
During its meeting, the committee reviewed the adequacy and
effectiveness of the internal control systems and approach to its
exposure to the business and financial risks. Processes are in
place to safeguard the assets of the organization and to ensure
that the financial reporting system can be relied upon in the
preparation and presentation of financial statements.
The Committee reviewed the company's Bi- Annual Financial
Statements, the Annual Report and Statutory Accounts for
reliability, consistency and compliance with the Sri Lanka
Accounting Standards and other statutory requirements,
including the Companies Act No 7 of 2007 prior to issuance. It
also reviewed the adequacy of disclosure in published financial
statements.
The Committee reviewed the Management Letters Issued by
the External Auditors and the Management response thereto.
The Audit Committee has recommended to the Board of
Directors that Messrs Ernst & Young be re-appointed as
Auditors for the financial year ending 31 March 2012 subject to
the approval of the shareholders at the next Annual General
Meeting.
INTERNAL CONTROLS
FINANCIAL STATEMENTS
EXTERNAL AUDITORS
REPORT OF THE AUDIT
COMMITTEE
CONCLUSIONThe Audit committee is satisfied that the control environment
adopted in the organization provides reasonable, but not
absolute assurance that the financial position of the company is
satisfactory and that systems are in place to minimize the impact
of identifiable risks and that the Listing Rules of the Colombo
Stock Exchange have been met.
T. Dharmarajah
Chairman - Audit Committee
16 August, 2011
22 23
The Audit Committee appointed by and responsible to the Board
of Directors, comprises three members namely,
Mr. T. Dharmarajah, Prof. S.P.P. Amarathunga and Mr. W.A.U.
Gunawardana, all being Non-Executive Independent Directors
of the company. The Committee is chaired by Mr. T. Dharmarajah,
a member of the Institute of Chartered Accountants of Sri Lanka.
All members of the Audit Committee have requisite knowledge to
carry-out their roles effectively and to discuss matters that come
within their purview independently and professionally.
The Purpose of the Audit Committee is to:
1. Assist the Board of Directors in fulfilling its overall
responsibilities for the financial reporting process
2. Review the system of internal control and risk management
3. Monitor the effectiveness of the internal audit function
4. Review the company's process for monitoring compliance
with laws and regulations
5. Review the independence and performance of the external
auditors
6. To make recommendations to the Board on the
appointment of external auditors and recommend their
remuneration and terms of engagement
The Principal activities of the Committee during the year are
detailed below.
During its meeting, the committee reviewed the adequacy and
effectiveness of the internal control systems and approach to its
exposure to the business and financial risks. Processes are in
place to safeguard the assets of the organization and to ensure
that the financial reporting system can be relied upon in the
preparation and presentation of financial statements.
The Committee reviewed the company's Bi- Annual Financial
Statements, the Annual Report and Statutory Accounts for
reliability, consistency and compliance with the Sri Lanka
Accounting Standards and other statutory requirements,
including the Companies Act No 7 of 2007 prior to issuance. It
also reviewed the adequacy of disclosure in published financial
statements.
The Committee reviewed the Management Letters Issued by
the External Auditors and the Management response thereto.
The Audit Committee has recommended to the Board of
Directors that Messrs Ernst & Young be re-appointed as
Auditors for the financial year ending 31 March 2012 subject to
the approval of the shareholders at the next Annual General
Meeting.
INTERNAL CONTROLS
FINANCIAL STATEMENTS
EXTERNAL AUDITORS
REPORT OF THE AUDIT
COMMITTEE
CONCLUSIONThe Audit committee is satisfied that the control environment
adopted in the organization provides reasonable, but not
absolute assurance that the financial position of the company is
satisfactory and that systems are in place to minimize the impact
of identifiable risks and that the Listing Rules of the Colombo
Stock Exchange have been met.
T. Dharmarajah
Chairman - Audit Committee
16 August, 2011
22 23
The Remuneration Committee consists of three Independent
Non Executive Directors; Prof. S.P.P.
Amarathunga and Mr. S.A. Wickramapala. The Committee is
chaired by Mr. W.A.U. Gunawardena. The Committee met on
four occasions during the financial year.
The Remuneration Committee has reviewed and recommended
the following to the Board of Directors.
1. Policy on remuneration of the executive staff
2. Specific remuneration package for the Executive Directors
3. Recruitment and selection of staff to managerial cadre.
In a highly competitive environment attracting and retaining
high calibre executives is a key challenge faced by the company.
In this context, the Committee took into account, competition,
market information and performance evaluated methodology
in declaring the overall remuneration policy.
W.A.U. Gunawardena
Chairman - Remuneration Committee
16 August, 2011
Mr. W.A.U. Gunawardena,
REPORT OF THE REMUNERATION
COMMITTEE
RISK MANAGEMENT
24 25
The Board of Directors is well mindful of possible risks the
company and its subsidiary face and the implications of those.
Risk management forms an integral part of the business, which
is addressed by adopting a fair approach to provide a reasonable
assurance that the company's risk exposure is mitigated to the
possible extent.
The company faces different risks including following:
Delays in project development due to deadlocks leading to loss
of revenue E.g. Delay in granting approval by related authorities
for project related matters.
MITIGATING ACTIONS
Building and maintaining a good rapport with the stakeholders
to minimize project development delays.
Low returns due to resource limitation by nature. E.g. Weather
pattern changes that bring unfavourable impact to raw salt
harvest.
MITIGATING ACTIONS
Backward integration, obtaining expert knowledge on
forecasting and assumptions.
Obsolescent of existing technology due to innovation in the
industry.
MITIGATING ACTIONS
Foreign consultancy, training.
Non adherence to the rules and regulations set out in numerous
government Acts.
MITIGATING ACTIONS
Awareness of those regulations and policy level arrangement to
address those risks.
Returns from new projects being lower due to actual project
cost overruns.
MITIGATING ACTIONS
Making accurate project cost estimates using expert
knowledge. Adopting budgetary controls on development cost.
Losses due to fraud, human errors, inefficient processes, natural
perils and loss of sensitive information.
MITIGATING ACTIONS
Conduct periodic internal audit reviews which report to the
Audit Committee of the company. Working out a business
continuity plan to ensure disaster preparedness. Appropriate
insurance covers.
PROJECT DEVELOPMENT RISK
BUSINESS RISK
TECHNOLOGICAL RISK
LEGAL RISK
COST OVERRUN RISK
OPERATIONAL RISK
The Remuneration Committee consists of three Independent
Non Executive Directors; Prof. S.P.P.
Amarathunga and Mr. S.A. Wickramapala. The Committee is
chaired by Mr. W.A.U. Gunawardena. The Committee met on
four occasions during the financial year.
The Remuneration Committee has reviewed and recommended
the following to the Board of Directors.
1. Policy on remuneration of the executive staff
2. Specific remuneration package for the Executive Directors
3. Recruitment and selection of staff to managerial cadre.
In a highly competitive environment attracting and retaining
high calibre executives is a key challenge faced by the company.
In this context, the Committee took into account, competition,
market information and performance evaluated methodology
in declaring the overall remuneration policy.
W.A.U. Gunawardena
Chairman - Remuneration Committee
16 August, 2011
Mr. W.A.U. Gunawardena,
REPORT OF THE REMUNERATION
COMMITTEE
RISK MANAGEMENT
24 25
The Board of Directors is well mindful of possible risks the
company and its subsidiary face and the implications of those.
Risk management forms an integral part of the business, which
is addressed by adopting a fair approach to provide a reasonable
assurance that the company's risk exposure is mitigated to the
possible extent.
The company faces different risks including following:
Delays in project development due to deadlocks leading to loss
of revenue E.g. Delay in granting approval by related authorities
for project related matters.
MITIGATING ACTIONS
Building and maintaining a good rapport with the stakeholders
to minimize project development delays.
Low returns due to resource limitation by nature. E.g. Weather
pattern changes that bring unfavourable impact to raw salt
harvest.
MITIGATING ACTIONS
Backward integration, obtaining expert knowledge on
forecasting and assumptions.
Obsolescent of existing technology due to innovation in the
industry.
MITIGATING ACTIONS
Foreign consultancy, training.
Non adherence to the rules and regulations set out in numerous
government Acts.
MITIGATING ACTIONS
Awareness of those regulations and policy level arrangement to
address those risks.
Returns from new projects being lower due to actual project
cost overruns.
MITIGATING ACTIONS
Making accurate project cost estimates using expert
knowledge. Adopting budgetary controls on development cost.
Losses due to fraud, human errors, inefficient processes, natural
perils and loss of sensitive information.
MITIGATING ACTIONS
Conduct periodic internal audit reviews which report to the
Audit Committee of the company. Working out a business
continuity plan to ensure disaster preparedness. Appropriate
insurance covers.
PROJECT DEVELOPMENT RISK
BUSINESS RISK
TECHNOLOGICAL RISK
LEGAL RISK
COST OVERRUN RISK
OPERATIONAL RISK
Report on the Financial Statements
We have audited the accompanying financial statements of Raigam Wayamba Salterns PLC (“Company”), the consolidated financial
statements of the Company and its subsidiary (“Group”) which comprise the balance sheets as at 31 March 2011, and the income
statements, statement of changes in equity and cash flow statements for the year then ended, and a summary of significant accounting
policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Sri Lanka
Accounting Standards. This responsibility includes: designing, implementing and maintaining internal controls relevant to the
preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Scope of Audit and Basis of Opinion
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the
financial statements are free from material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting policies used and significant estimates made by management, as well as evaluating the overall
financial statement presentation.
We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit. We therefore believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, so far as appears from our examination, the Company maintained proper accounting records for the year ended 31
March 2011 and the financial statements give a true and fair view of the Company’s state of affairs as at 31 March 2011 and its profit
and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.
In our opinion, the consolidated financial statements give a true and fair view of the state of affairs as at 31 March 2011 and the profit
and cash flows for the year then ended, in accordance with Sri Lanka Accounting Standards, of the Company and its subsidiary dealt
with thereby, so far as concerns the shareholders of the Company.
Report on Other Legal and Regulatory Requirements
In our opinion, these financial statements also comply with the requirements of Section 151(2) and 153(2) to 153(7) of the Companies
Act No. 07 of 2007.
28 June 2011
Colombo
INDEPENDENT AUDITORS’ REPORTTO THE SHAREHOLDERS OF RAIGAM WAYAMBA SALTERNS PLC
26 27
REGULATORY AND COMPLIANCE RISK
HUMAN RISK
INTEREST RATE RISK
CREDIT RISK
Introduction of new regulations affecting the business
adversely.
MITIGATING ACTIONS
Monitoring of compliance with regulatory requirements.
Participate in lobbying efforts against regulations that could
have a negative impact on business/industry.
MITIGATING ACTIONS
Adverse impact on profitability due to interest rate fluctuations.
MITIGATING ACTIONS
Use of flexible financial sources and arrangement.
Liquidity position being negatively affected due to delays / non-
payments from debtors.
MITIGATING ACTIONS
Protection through legally enforceable agreements.
Adverse impact on business competitiveness due to the inability
to recruit/retain required talented staff.
Build strong employer brand.
BW/PNR/HMS/TW
Report on the Financial Statements
We have audited the accompanying financial statements of Raigam Wayamba Salterns PLC (“Company”), the consolidated financial
statements of the Company and its subsidiary (“Group”) which comprise the balance sheets as at 31 March 2011, and the income
statements, statement of changes in equity and cash flow statements for the year then ended, and a summary of significant accounting
policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Sri Lanka
Accounting Standards. This responsibility includes: designing, implementing and maintaining internal controls relevant to the
preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Scope of Audit and Basis of Opinion
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the
financial statements are free from material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting policies used and significant estimates made by management, as well as evaluating the overall
financial statement presentation.
We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit. We therefore believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, so far as appears from our examination, the Company maintained proper accounting records for the year ended 31
March 2011 and the financial statements give a true and fair view of the Company’s state of affairs as at 31 March 2011 and its profit
and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.
In our opinion, the consolidated financial statements give a true and fair view of the state of affairs as at 31 March 2011 and the profit
and cash flows for the year then ended, in accordance with Sri Lanka Accounting Standards, of the Company and its subsidiary dealt
with thereby, so far as concerns the shareholders of the Company.
Report on Other Legal and Regulatory Requirements
In our opinion, these financial statements also comply with the requirements of Section 151(2) and 153(2) to 153(7) of the Companies
Act No. 07 of 2007.
28 June 2011
Colombo
INDEPENDENT AUDITORS’ REPORTTO THE SHAREHOLDERS OF RAIGAM WAYAMBA SALTERNS PLC
26 27
REGULATORY AND COMPLIANCE RISK
HUMAN RISK
INTEREST RATE RISK
CREDIT RISK
Introduction of new regulations affecting the business
adversely.
MITIGATING ACTIONS
Monitoring of compliance with regulatory requirements.
Participate in lobbying efforts against regulations that could
have a negative impact on business/industry.
MITIGATING ACTIONS
Adverse impact on profitability due to interest rate fluctuations.
MITIGATING ACTIONS
Use of flexible financial sources and arrangement.
Liquidity position being negatively affected due to delays / non-
payments from debtors.
MITIGATING ACTIONS
Protection through legally enforceable agreements.
Adverse impact on business competitiveness due to the inability
to recruit/retain required talented staff.
Build strong employer brand.
BW/PNR/HMS/TW
I certify that these financial statements are in compliance with the requirements of the Companies Act No.07 of 2007.
……………………….....……………………..E.A.C.K.Perera
General Manager Finance
The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by:
……………………….....……………………..G.V.P.G.Amarasinghe
Director
……………………….....…………………….. R.Liyanage
Director
The accounting policies and notes on pages 32 through 51 form an integral part of the Financial Statements.
28 June 2011Colombo
INCOME STATEMENTYEAR ENDED 31 MARCH 2011
BALANCE SHEETAS AT 31 MARCH 2011
Non-Current Assets
Property, Plant and Equipment 4 442,072,419 331,206,250 398,520,931 308,409,827
Investments 5 - - 61,823,540 11,823,540
Leasehold Land 6 1,200,000 1,200,000 - -
Goodwill 1,846,790 1,846,790 - -
Deferred Tax Assets 13.2 202,057 - 202,057 -
445,321,266 334,253,040 460,546,528 320,233,367
Current Assets
Inventories 7 29,191,336 7,012,435 27,809,135 7,012,435
Trade and Other Receivables 8 176,416,295 154,426,355 169,844,646 170,923,912
Investments 5.2 150,000,000 - 150,000,000 -
Cash and Cash Equivalents 19.1 5,741,719 1,130,918,151 5,673,078 1,130,838,150
361,349,350 1,292,356,941 353,326,859 1,308,774,497
Total Assets 806,670,616 1,626,609,981 813,873,387 1,629,007,864
Stated Capital 9 604,414,640 604,414,640 604,414,640 604,414,640
Retained Earnings 56,466,129 (1,399,363) 66,988,427 1,961,625
Total Equity 660,880,769 603,015,277 671,403,067 606,376,265
Non-Current Liabilities
Interest Bearing Loans and Borrowings 10 6,783,658 14,094,363 6,783,658 14,094,364
Retirement Benefit Liability 12 1,192,424 892,624 1,192,424 892,624
7,976,082 14,986,987 7,976,082 14,986,988
Current Liabilities
Trade and Other Payables 14 18,560,265 950,723,098 16,598,990 949,946,806
Income Tax Payable 3,332,480 - 3,332,480 -
Interest Bearing Loans and Borrowings 10 115,921,020 34,695,264 114,562,768 34,508,450
Non Interest Bearing Loans and Borrowings 11 - 23,189,355 - 23,189,355
137,813,765 1,008,607,717 134,494,238 1,007,644,611
Total Equity and Liabilities 806,670,616 1,626,609,981 813,873,387 1,629,007,864
Group Company
Note 2011 2010 2011 2010Rs. Rs. Rs. RsASSETS
EQUITY AND LIABILITIES
Group Company
Note 2011 2010 2011 2010Rs. Rs. Rs. Rs
.
Earnings Per Share 17 0 .21 0.18 0.23 0 .19
Basic Earnings Per Share
The accounting policies and notes on pages 32 through 51 form an integral part of the Financial Statements.
Revenue 3 297,411,339 259,531,518 297,411,339 259,531,518
Cost of Sales (161,408,781) (143,578,645) (161,408,781) (143,578,645)
Gross Profit 136,002,558 115,952,873 136,002,558 115,952,873
Other Income and Gains 15 20,928,425 14,001 20,928,425 14,001
Selling and Distribution Expenses (36,448,233) (26,584,471) (36,448,233) (26,584,471)
Administrative Expenses (47,101,659) (30,662,368) (39,985,798) (28,744,135)
Finance Cost 16 (9,219,296) (7,464,008) (9,173,847) (7,449,493)
Profit Before Tax 18 64,161,794 51,256,027 71,323,104 53,188,775
Income Tax Expense 13 (6,296,302) - (6,296,302) -
Profit for the Year 57,865,492 51,256,027 65,026,802 53,188,775
28 29
I certify that these financial statements are in compliance with the requirements of the Companies Act No.07 of 2007.
……………………….....……………………..E.A.C.K.Perera
General Manager Finance
The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by:
……………………….....……………………..G.V.P.G.Amarasinghe
Director
……………………….....…………………….. R.Liyanage
Director
The accounting policies and notes on pages 32 through 51 form an integral part of the Financial Statements.
28 June 2011Colombo
INCOME STATEMENTYEAR ENDED 31 MARCH 2011
BALANCE SHEETAS AT 31 MARCH 2011
Non-Current Assets
Property, Plant and Equipment 4 442,072,419 331,206,250 398,520,931 308,409,827
Investments 5 - - 61,823,540 11,823,540
Leasehold Land 6 1,200,000 1,200,000 - -
Goodwill 1,846,790 1,846,790 - -
Deferred Tax Assets 13.2 202,057 - 202,057 -
445,321,266 334,253,040 460,546,528 320,233,367
Current Assets
Inventories 7 29,191,336 7,012,435 27,809,135 7,012,435
Trade and Other Receivables 8 176,416,295 154,426,355 169,844,646 170,923,912
Investments 5.2 150,000,000 - 150,000,000 -
Cash and Cash Equivalents 19.1 5,741,719 1,130,918,151 5,673,078 1,130,838,150
361,349,350 1,292,356,941 353,326,859 1,308,774,497
Total Assets 806,670,616 1,626,609,981 813,873,387 1,629,007,864
Stated Capital 9 604,414,640 604,414,640 604,414,640 604,414,640
Retained Earnings 56,466,129 (1,399,363) 66,988,427 1,961,625
Total Equity 660,880,769 603,015,277 671,403,067 606,376,265
Non-Current Liabilities
Interest Bearing Loans and Borrowings 10 6,783,658 14,094,363 6,783,658 14,094,364
Retirement Benefit Liability 12 1,192,424 892,624 1,192,424 892,624
7,976,082 14,986,987 7,976,082 14,986,988
Current Liabilities
Trade and Other Payables 14 18,560,265 950,723,098 16,598,990 949,946,806
Income Tax Payable 3,332,480 - 3,332,480 -
Interest Bearing Loans and Borrowings 10 115,921,020 34,695,264 114,562,768 34,508,450
Non Interest Bearing Loans and Borrowings 11 - 23,189,355 - 23,189,355
137,813,765 1,008,607,717 134,494,238 1,007,644,611
Total Equity and Liabilities 806,670,616 1,626,609,981 813,873,387 1,629,007,864
Group Company
Note 2011 2010 2011 2010Rs. Rs. Rs. RsASSETS
EQUITY AND LIABILITIES
Group Company
Note 2011 2010 2011 2010Rs. Rs. Rs. Rs
.
Earnings Per Share 17 0 .21 0.18 0.23 0 .19
Basic Earnings Per Share
The accounting policies and notes on pages 32 through 51 form an integral part of the Financial Statements.
Revenue 3 297,411,339 259,531,518 297,411,339 259,531,518
Cost of Sales (161,408,781) (143,578,645) (161,408,781) (143,578,645)
Gross Profit 136,002,558 115,952,873 136,002,558 115,952,873
Other Income and Gains 15 20,928,425 14,001 20,928,425 14,001
Selling and Distribution Expenses (36,448,233) (26,584,471) (36,448,233) (26,584,471)
Administrative Expenses (47,101,659) (30,662,368) (39,985,798) (28,744,135)
Finance Cost 16 (9,219,296) (7,464,008) (9,173,847) (7,449,493)
Profit Before Tax 18 64,161,794 51,256,027 71,323,104 53,188,775
Income Tax Expense 13 (6,296,302) - (6,296,302) -
Profit for the Year 57,865,492 51,256,027 65,026,802 53,188,775
28 29
CASH FLOW STATEMENTYEAR ENDED 31 MARCH 2011
STATEMENT OF CHANGES IN EQUITYYEAR ENDED 31 MARCH 2011
The accounting policies and notes on pages 32 through 51 form an integral part of the Financial Statements.
Note 2011 2010 2011 2010Rs. Rs. Rs. Rs.
CASH FLOWS FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Profit Before Income Tax Expense 64,161,794 51,256,027 71,323,104 53,188,775
Adjustments for
Depreciation 4 15,997,264 11,418,840 15,602,602 11,406,398
Finance Costs 16 9,219,297 7,464,008 9,173,847 7,449,493
Provision for Defined Benefit Plans 12 379,800 (7,072) 379,800 (7,072)
Loss on Disposal of Property,Plant and Equipment 103,028 1,775,533 103,028 1,775,533
Operating Profit Before Working Capital Changes 89,861,183 71,907,336 96,582,381 73,813,128
(Increase) / Decrease in Inventories (22,178,899) 4 ,451,287 (20,796,700) 4,451,287
(Increase) / Decrease in Trade and Other Receivables (21,989,940) (17,847,097) 1,079,266 (31,007,941)
Increase / (Decrease) in Trade and Other Payables (932,162,833) 920,256,318 (933,347,816) 932,521,916
Cash Generated from Operations (886,470,489) 978,767,844 (856,482,869) 979,778,390
Income Tax Paid (3,165,879) - (3,165,879) -
Gratuity Paid 12 (80,000) - (80,000) -
Finance Costs Paid 16 (7,435,597) (6,323,978) (7,390,147) (6,309,463)
Net Cash from Operating Activities (897,151,965) 972,443,866 (867,118,896) 973,468,927
Acquisition of Property, Plant and Equipment 4.1 (130,359,317) (34,321,598) (109,209,589) (28,500,166)
Acquisition of Other Investments - - (50,000,000) (6,823,540)
Acquisition / (Disposal) of Investments (150,000,000) 12,000,000 (150,000,000) 12,000,000
Acquisition / (Disposal) of Proceeds from Property, Plant and Equipment 3,392,857 - 3,392,857 -
Net Cash from / (Used in) Investing Activities (276,966,460) (22,321,598) (305,816,732) (23,323,706)
Proceeds from Issuance of Share Capital - 200,000,000 - 200,000,000
Loan Obtained 11 - 23,189,355 - 23,189,355
Principal Payment under Finance Lease Liabilities 10.5 (4,803,835) (2,661,333) (4,803,835) (2,661,333)
Repayment of Interest Bearing Loans and Borrowings 10.4 (3,683,080) (3,676,380) (3,683,080) (3,676,380)
Repayment of Non Interest Bearing Loans and Borrowings 11 (23,189,355) - (23,189,355) -
Payment of Dividends - (36,212,897) - (36,212,897)
Net Cash from / (used in) Financing Activities (31,676,270) 180,638,745 (31,676,270) 180,638,745
Net Increase / (Decrease) in Cash and Cash Equivalents (1,205,794,696) 1,130,761,014 (1,204,611,898) 1,130,783,966
Cash and Cash Equivalents at the Beginning of the Year 1,103,325,020 (27,435,994) 1,103,431,833 (27,352,133)
Cash and Cash Equivalents at the End of the Year 19 (102,469,676) 1,103,325,020 (101,180,065) 1,103,431,833
Group CompanyGROUP Stated Retained Total Capital Earnings
Rs. Rs. Rs.
Balance as at 01 April 2009 204,414,629 183,557,518 387,972,147
Issue of Shares 200,000,000 (200,000,000) -
Transferred to Stated Capital During the Year 1 1 (11) -
Call in Advance 200,000,000 - 200,000,000
Interim Dividend for 2009/2010 - (36,212,897) (36,212,897)
Profit for the Year - 51,256,027 51,256,027
Balance as at 31 March 2010 604,414,640 (1,399,363) 603,015,277
Profit for the Year - 57,865,492 57,865,492
Balance as at 31 March 2011 604,414,640 56,466,129 660,880,769
COMPANY
Balance as at 31 March 2009 204,414,629 184,985,758 389,400,387
Issue of Shares 200,000,000 (200,000,000) -
Transferred to Stated Capital During the Year 11 (11) -
Call in Advance 200,000,000 - 200,000,000
Interim Dividend for 2009/2010 - (36,212,897) (36,212,897)
Profit for the Year - 53,188,775 53,188,775
Balance as at 31 March 2010 604,414,640 1,961,625 606,376,265
Profit for the Year - 65,026,802 65,026,802
Balance as at 31 March 2011 604,414,640 66,988,427 671,403,067
The accounting policies and notes on pages 32 through 51 form an integral part of the Financial Statements.
StatedCapital
Rs.
RetainedEarnings
Rs.
Total
Rs.
30 31
CASH FLOW STATEMENTYEAR ENDED 31 MARCH 2011
STATEMENT OF CHANGES IN EQUITYYEAR ENDED 31 MARCH 2011
The accounting policies and notes on pages 32 through 51 form an integral part of the Financial Statements.
Note 2011 2010 2011 2010Rs. Rs. Rs. Rs.
CASH FLOWS FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Profit Before Income Tax Expense 64,161,794 51,256,027 71,323,104 53,188,775
Adjustments for
Depreciation 4 15,997,264 11,418,840 15,602,602 11,406,398
Finance Costs 16 9,219,297 7,464,008 9,173,847 7,449,493
Provision for Defined Benefit Plans 12 379,800 (7,072) 379,800 (7,072)
Loss on Disposal of Property,Plant and Equipment 103,028 1,775,533 103,028 1,775,533
Operating Profit Before Working Capital Changes 89,861,183 71,907,336 96,582,381 73,813,128
(Increase) / Decrease in Inventories (22,178,899) 4 ,451,287 (20,796,700) 4,451,287
(Increase) / Decrease in Trade and Other Receivables (21,989,940) (17,847,097) 1,079,266 (31,007,941)
Increase / (Decrease) in Trade and Other Payables (932,162,833) 920,256,318 (933,347,816) 932,521,916
Cash Generated from Operations (886,470,489) 978,767,844 (856,482,869) 979,778,390
Income Tax Paid (3,165,879) - (3,165,879) -
Gratuity Paid 12 (80,000) - (80,000) -
Finance Costs Paid 16 (7,435,597) (6,323,978) (7,390,147) (6,309,463)
Net Cash from Operating Activities (897,151,965) 972,443,866 (867,118,896) 973,468,927
Acquisition of Property, Plant and Equipment 4.1 (130,359,317) (34,321,598) (109,209,589) (28,500,166)
Acquisition of Other Investments - - (50,000,000) (6,823,540)
Acquisition / (Disposal) of Investments (150,000,000) 12,000,000 (150,000,000) 12,000,000
Acquisition / (Disposal) of Proceeds from Property, Plant and Equipment 3,392,857 - 3,392,857 -
Net Cash from / (Used in) Investing Activities (276,966,460) (22,321,598) (305,816,732) (23,323,706)
Proceeds from Issuance of Share Capital - 200,000,000 - 200,000,000
Loan Obtained 11 - 23,189,355 - 23,189,355
Principal Payment under Finance Lease Liabilities 10.5 (4,803,835) (2,661,333) (4,803,835) (2,661,333)
Repayment of Interest Bearing Loans and Borrowings 10.4 (3,683,080) (3,676,380) (3,683,080) (3,676,380)
Repayment of Non Interest Bearing Loans and Borrowings 11 (23,189,355) - (23,189,355) -
Payment of Dividends - (36,212,897) - (36,212,897)
Net Cash from / (used in) Financing Activities (31,676,270) 180,638,745 (31,676,270) 180,638,745
Net Increase / (Decrease) in Cash and Cash Equivalents (1,205,794,696) 1,130,761,014 (1,204,611,898) 1,130,783,966
Cash and Cash Equivalents at the Beginning of the Year 1,103,325,020 (27,435,994) 1,103,431,833 (27,352,133)
Cash and Cash Equivalents at the End of the Year 19 (102,469,676) 1,103,325,020 (101,180,065) 1,103,431,833
Group CompanyGROUP Stated Retained Total Capital Earnings
Rs. Rs. Rs.
Balance as at 01 April 2009 204,414,629 183,557,518 387,972,147
Issue of Shares 200,000,000 (200,000,000) -
Transferred to Stated Capital During the Year 1 1 (11) -
Call in Advance 200,000,000 - 200,000,000
Interim Dividend for 2009/2010 - (36,212,897) (36,212,897)
Profit for the Year - 51,256,027 51,256,027
Balance as at 31 March 2010 604,414,640 (1,399,363) 603,015,277
Profit for the Year - 57,865,492 57,865,492
Balance as at 31 March 2011 604,414,640 56,466,129 660,880,769
COMPANY
Balance as at 31 March 2009 204,414,629 184,985,758 389,400,387
Issue of Shares 200,000,000 (200,000,000) -
Transferred to Stated Capital During the Year 11 (11) -
Call in Advance 200,000,000 - 200,000,000
Interim Dividend for 2009/2010 - (36,212,897) (36,212,897)
Profit for the Year - 53,188,775 53,188,775
Balance as at 31 March 2010 604,414,640 1,961,625 606,376,265
Profit for the Year - 65,026,802 65,026,802
Balance as at 31 March 2011 604,414,640 66,988,427 671,403,067
The accounting policies and notes on pages 32 through 51 form an integral part of the Financial Statements.
StatedCapital
Rs.
RetainedEarnings
Rs.
Total
Rs.
30 31
2.1.2 COMPARATIVE INFORMATION
2.1.3 STATEMENT OF COMPLIANCE
2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS
JUDGMENTS
ESTIMATES AND ASSUMPTIONS
2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.3.1 FOREIGN CURRENCY TRANSLATION
2.3.2 TAXATION
The accounting policies applied by the Group are consistent with those used in previous year’s figures and phrases have been
rearranged, wherever necessary, to confirm to the current year’s presentation.
The Financial Statements of Group have been prepared in accordance with Sri Lanka Accounting Standards (SLAS).
In the process of applying the Group’s accounting policies, management has made the following judgments, apart from those
involving estimations, which have the most significant effect on the amounts recognized in the Financial Statements.
The Group reviews at each balance sheet date all receivables to assess whether an allowance should be recorded in the income
statement. The Management uses judgement in estimating such amounts in the light of the duration of outstanding and any
other factors management is aware of that indicate uncertainty in recovery.
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a
significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are
discussed below. The respective carrying amounts of assets and liabilities are given in related notes to the Financial Statements.
The Property, Plant and Equipment of the Group are reflected at fair value, when current market prices of similar assets are
available, such evidences are considered in estimating fair values of these assets. In the absence of such information the Group
determines within a reasonable fair value estimates, amounts that can be attributed as fair values, with the assistance of an
independent valuer.
The Defined Benefit Obligation and the related charge for the year is determined using assumptions required under actuarial
valuation techniques. The valuation involves making assumptions about discount rates, future salary increases, staff turnover
rates etc. Due to the long term nature of such obligations these estimates are subject to significant uncertainty. Further details are
given in Note 12.
The Financial Statements are presented in Sri Lanka Rupees, which is the Group's functional and presentation currency.
Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange
ruling at the balance sheet date. All differences are taken to profit or loss. Non monetary items that are measured in terms of
historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non
monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair
value was determined.
Pursuant to agreement dated 20 March 2006 entered into with Board of Investment under Section 17 of the Board of Investment
Law, the Company is exempt from the business of manufacturing for a period of 8 years from year 2007. This exemption expires
Allowance for Doubtful Debts:
Fair Value of Property, Plant & Equipment:
Defined Benefit Plans:
a) CURRENT TAXES
Raigam Wayamba Salterns PLC
1. CORPORATE INFORMATION1.1 GENERAL
1.2 PRINCIPAL ACTIVITIES AND NATURE OF OPERATIONS
1.3 PARENT ENTITY AND ULTIMATE PARENT ENTITY
1.4 DATE OF AUTHORIZATION FOR ISSUE
2. BASIS OF PREPARATION
2.1.1 BASIS OF CONSOLIDATION
Raigam Wayamba Salterns PLC (“Company”) is a limited liability company incorporated and domiciled in Sri Lanka. The
registered office of the Company is located at No. 23, Walukarama Road, Colombo 03.
During the year, the principal activities of the Company and the subsidiary dealt with in these financial statements were as
follows;
COMPANY ACTIVITIES
Raigam Wayamba Saltern PLC Manufacturing and Distribution of Salt Island wide,
Development of Salterns
Southern Salt Company (Pvt) Ltd Development of Salterns
The Group’s parent entity is Raigam Marketing Services (Private) Limited. In the opinion of the Directors, the Group’s ultimate
parent undertaking and controlling party is also Raigam Marketing Services (Private) Limited, which is incorporated in Sri Lanka.
The Financial Statements of Raigam Wayamba Salterns PLC and its subsidiary for the year ended 31 March 2011 were authorized
for issue in accordance with a resolution of the Board of Directors on 28 June 2011.
The Financial Statements have been prepared on a historical cost basis, except for freehold land, buildings on freehold land, plant
and machinery. The Financial Statements are presented in Sri Lankan Rupees. The Preparation and Presentation of these financial
statements are in compliance with the Companies Act No. 07 of 2007.
The Financial Statements of the Group represent the consolidation of the Financial Statements of the Company, its subsidiary,
after elimination of all material intra Group transactions.
a) SUBSIDIARY
Subsidiary is the enterprise controlled by the parent. Control exists when the parent has the power, directly or indirectly to govern
the financial and operating policies of an enterprise. Subsidiary is controlled from the date the parent obtains control until the
date that control ceases. The following companies have been consolidated.
- Raigam Wayamba Salterns PLC - Parent- Southern Salt Company (Private) Limited - Subsidiary
All companies of the Group are incorporated in Sri Lanka and have a common financial year which ends on 31 March.
b) The total profits and losses for the year, of the Company and of its subsidiary included in consolidation are shown in the
Consolidated Income Statement. All assets and liabilities of the Company and of its subsidiary included in consolidation are
shown in the Consolidated Balance Sheet. The Consolidated Cash Flow Statement includes the cash flows of the
Company and its subsidiary.
Goodwill represents the excess of the cost of the acquisition over the Fair Value of identifiable net assets of a subsidiary as at the
date of acquisition. In accordance with SLAS 25 (revised 2004), goodwill arising on business combinations after 1 June 2005 are
not amortised, but tested for impairment annually.
c) GOODWILL
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
32 33
2.1.2 COMPARATIVE INFORMATION
2.1.3 STATEMENT OF COMPLIANCE
2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS
JUDGMENTS
ESTIMATES AND ASSUMPTIONS
2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.3.1 FOREIGN CURRENCY TRANSLATION
2.3.2 TAXATION
The accounting policies applied by the Group are consistent with those used in previous year’s figures and phrases have been
rearranged, wherever necessary, to confirm to the current year’s presentation.
The Financial Statements of Group have been prepared in accordance with Sri Lanka Accounting Standards (SLAS).
In the process of applying the Group’s accounting policies, management has made the following judgments, apart from those
involving estimations, which have the most significant effect on the amounts recognized in the Financial Statements.
The Group reviews at each balance sheet date all receivables to assess whether an allowance should be recorded in the income
statement. The Management uses judgement in estimating such amounts in the light of the duration of outstanding and any
other factors management is aware of that indicate uncertainty in recovery.
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a
significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are
discussed below. The respective carrying amounts of assets and liabilities are given in related notes to the Financial Statements.
The Property, Plant and Equipment of the Group are reflected at fair value, when current market prices of similar assets are
available, such evidences are considered in estimating fair values of these assets. In the absence of such information the Group
determines within a reasonable fair value estimates, amounts that can be attributed as fair values, with the assistance of an
independent valuer.
The Defined Benefit Obligation and the related charge for the year is determined using assumptions required under actuarial
valuation techniques. The valuation involves making assumptions about discount rates, future salary increases, staff turnover
rates etc. Due to the long term nature of such obligations these estimates are subject to significant uncertainty. Further details are
given in Note 12.
The Financial Statements are presented in Sri Lanka Rupees, which is the Group's functional and presentation currency.
Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange
ruling at the balance sheet date. All differences are taken to profit or loss. Non monetary items that are measured in terms of
historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non
monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair
value was determined.
Pursuant to agreement dated 20 March 2006 entered into with Board of Investment under Section 17 of the Board of Investment
Law, the Company is exempt from the business of manufacturing for a period of 8 years from year 2007. This exemption expires
Allowance for Doubtful Debts:
Fair Value of Property, Plant & Equipment:
Defined Benefit Plans:
a) CURRENT TAXES
Raigam Wayamba Salterns PLC
1. CORPORATE INFORMATION1.1 GENERAL
1.2 PRINCIPAL ACTIVITIES AND NATURE OF OPERATIONS
1.3 PARENT ENTITY AND ULTIMATE PARENT ENTITY
1.4 DATE OF AUTHORIZATION FOR ISSUE
2. BASIS OF PREPARATION
2.1.1 BASIS OF CONSOLIDATION
Raigam Wayamba Salterns PLC (“Company”) is a limited liability company incorporated and domiciled in Sri Lanka. The
registered office of the Company is located at No. 23, Walukarama Road, Colombo 03.
During the year, the principal activities of the Company and the subsidiary dealt with in these financial statements were as
follows;
COMPANY ACTIVITIES
Raigam Wayamba Saltern PLC Manufacturing and Distribution of Salt Island wide,
Development of Salterns
Southern Salt Company (Pvt) Ltd Development of Salterns
The Group’s parent entity is Raigam Marketing Services (Private) Limited. In the opinion of the Directors, the Group’s ultimate
parent undertaking and controlling party is also Raigam Marketing Services (Private) Limited, which is incorporated in Sri Lanka.
The Financial Statements of Raigam Wayamba Salterns PLC and its subsidiary for the year ended 31 March 2011 were authorized
for issue in accordance with a resolution of the Board of Directors on 28 June 2011.
The Financial Statements have been prepared on a historical cost basis, except for freehold land, buildings on freehold land, plant
and machinery. The Financial Statements are presented in Sri Lankan Rupees. The Preparation and Presentation of these financial
statements are in compliance with the Companies Act No. 07 of 2007.
The Financial Statements of the Group represent the consolidation of the Financial Statements of the Company, its subsidiary,
after elimination of all material intra Group transactions.
a) SUBSIDIARY
Subsidiary is the enterprise controlled by the parent. Control exists when the parent has the power, directly or indirectly to govern
the financial and operating policies of an enterprise. Subsidiary is controlled from the date the parent obtains control until the
date that control ceases. The following companies have been consolidated.
- Raigam Wayamba Salterns PLC - Parent- Southern Salt Company (Private) Limited - Subsidiary
All companies of the Group are incorporated in Sri Lanka and have a common financial year which ends on 31 March.
b) The total profits and losses for the year, of the Company and of its subsidiary included in consolidation are shown in the
Consolidated Income Statement. All assets and liabilities of the Company and of its subsidiary included in consolidation are
shown in the Consolidated Balance Sheet. The Consolidated Cash Flow Statement includes the cash flows of the
Company and its subsidiary.
Goodwill represents the excess of the cost of the acquisition over the Fair Value of identifiable net assets of a subsidiary as at the
date of acquisition. In accordance with SLAS 25 (revised 2004), goodwill arising on business combinations after 1 June 2005 are
not amortised, but tested for impairment annually.
c) GOODWILL
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
32 33
2.3.5 TRADE AND OTHER RECEIVABLES
2.3.6 CASH AND CASH EQUIVALENTS
2.3.7 PROPERTY, PLANT AND EQUIPMENT
2.3.8 LEASES – COMPANY AS A LESSEE
2.3.9 INVESTMENTS
Trade Receivables are stated at the amounts they are estimated to realise net of allowances for bad and doubtful receivables.
Other Receivables and dues from related parties are recognised at cost less allowances for bad and doubtful receivables.
Cash and Cash Equivalents are cash in hand, demand deposits and short-term highly liquid investments, readily convertible to
known amounts of cash and subject to insignificant risk of changes in value.
For the purpose of cash flow statement, cash and cash equivalents consist of cash in hand and deposits in banks net of
outstanding bank overdrafts. Investments with short maturities i.e. three months or less from the date of acquisition are also
treated as cash equivalents.
Property, Plant and Equipment except for land, building on freehold land and plant and machinery are stated at cost, excluding
the costs of day to day servicing, less accumulated depreciation and accumulated impairment in value. Such cost includes the
cost of replacing part of the plant and equipment when that cost is incurred, if the recognition criteria are met.
Land buildings and plant and machinery are measured at fair value less depreciation on buildings and impairment charged
subsequent to the date of the revaluation.
Depreciation is calculated on a straight line basis over the useful life of the assets.
Valuations are performed every 3-5 years to ensure that the fair value of a revalued asset does not differ materially from its
carrying amount.
Any revaluation surplus is credited to the revaluation reserve included in the equity section of the balance sheet, except to the
extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase
is recognised in profit or loss. A revaluation deficit is recognised in profit or loss, except that a deficit directly offsetting a previous
surplus on the same asset is directly offset against the surplus in the asset revaluation reserve.
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are
capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum
lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are reflected in the income
statement.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no
reasonable certainty that the Company will obtain ownership by the end of the lease term. The depreciation policy for
depreciable leased assets is consistent with that for depreciable asset that are owned as described in 4.9.
Operating lease payments are recognised as an expense in the income statement on a straight line basis over the lease term.
Cost of investment includes purchase cost and acquisition charges such as brokerages, fees, duties and bank regulatory fees.
The Group distinguishes and presents current and non current investment in the Balance Sheet.
b) MEASUREMENT
Current Investments
Current investments are carried at the lower of cost and market value, determined on the basis of aggregate portfolio.
Unrealized gains and losses on current investment is carried at market value are recognized as income or expense.
a) INITIAL RECOGNITION:
on the 2nd of March 2015 and for the immediately succeeding two years the Company is liable to pay income tax at the rate of
10% and thereafter at the rate of 20%.
Pursuant to the approval granted on 5th August 2008 by the Ministry of Industrial Development under “300 Industries
Programme, “Gamata Karmantha Project” referring to Section 20 of the Inland Revenue Act. No.10 of 2006 and Section 11 of
the Inland Revenue (Amendment) Act. No.09 of 2008, the Company has been entitled to a tax holiday period upto a minimum
period of five years and a maximum period of ten years provided certain conditions are met by the Company.
Section 17 of the Greater Colombo Economic Commission Law No. 4 of 1978, under which The Board of Investment (BOI) in Sri
Lanka is set up, has given the BOI the power to grant exemptions from the Inland Revenue Act. The Board on entering into
agreement with the Company has stated that the provisions of the Inland Revenue Act in relation to the imposition, payment,
and recovery of income tax in respect of the profits and income of the enterprise shall not apply for the profits and income of the
enterprise.
Effect of application of deferred taxation as per SLAS 14 Income Taxes (Revised 2005) on entities enjoying a tax
holiday period
During the year the Group commenced application of deferred taxation as per SLAS 14 Income Taxes (Revised 2005) on entities
enjoying tax holiday periods under the Board of Investment Law, as recommended by the “Deferred Tax council ruling for BOI
companies” issued by The Institute of Chartered Accountants of Sri Lanka. The effect of this application has not been accounted
for retrospectively since the effect is immaterial.
Revenues, expenses and assets are recognized net of the amount of sales tax except where the sales tax incurred on a purchase
of assets or service is not recoverable from the taxation authorities in which case the sales tax is recognized as a part of the cost of
the asset or part of the expense items as applicable and receivable and payable that are stated with the amount of sales tax
included. The amount of sales tax recoverable and payable in respect of taxation authorities is included as a part of receivables
and payables in the Balance Sheet.
Borrowing costs are recognised as an expense in the period in which they are incurred, except to the extent where borrowing
costs that are directly attributable to the acquisition, construction, or production of an asset that takes a substantial period of
time to get ready for its intended use or sale, are capitalized as part of that asset.
Inventories are valued at the lower of cost and net realizable value, after making due allowances for obsolete and slow moving
items. Net realizable value is the price at which inventories can be sold in the ordinary course of business less the estimated cost
of completion and the estimated cost necessary to make the sale.
The cost incurred in bringing inventories to its present location and conditions are accounted using the following cost formulae:-
Raw Materials - At purchase cost on first-in first-out basis
Finished Goods & Working-Progress - At the cost of direct materials, direct labour and an appropriate proportion of
manufacturing overheads based on normal operating capacity, but excluding
borrowing costs.
Engineering Stock and
Other Chemicals Stock - At purchase cost on First in First out basis
Net realizable Value is the estimated selling price in the ordinary course of business, less estimated cost of completion and
estimated costs necessary to make the sale.
Southern Salt Company (Private) Limited
b) DEFERRED TAXATION
c) SALES TAX
2.3.3 BORROWING COSTS
2.3.4 INVENTORIES
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
34 35
2.3.5 TRADE AND OTHER RECEIVABLES
2.3.6 CASH AND CASH EQUIVALENTS
2.3.7 PROPERTY, PLANT AND EQUIPMENT
2.3.8 LEASES – COMPANY AS A LESSEE
2.3.9 INVESTMENTS
Trade Receivables are stated at the amounts they are estimated to realise net of allowances for bad and doubtful receivables.
Other Receivables and dues from related parties are recognised at cost less allowances for bad and doubtful receivables.
Cash and Cash Equivalents are cash in hand, demand deposits and short-term highly liquid investments, readily convertible to
known amounts of cash and subject to insignificant risk of changes in value.
For the purpose of cash flow statement, cash and cash equivalents consist of cash in hand and deposits in banks net of
outstanding bank overdrafts. Investments with short maturities i.e. three months or less from the date of acquisition are also
treated as cash equivalents.
Property, Plant and Equipment except for land, building on freehold land and plant and machinery are stated at cost, excluding
the costs of day to day servicing, less accumulated depreciation and accumulated impairment in value. Such cost includes the
cost of replacing part of the plant and equipment when that cost is incurred, if the recognition criteria are met.
Land buildings and plant and machinery are measured at fair value less depreciation on buildings and impairment charged
subsequent to the date of the revaluation.
Depreciation is calculated on a straight line basis over the useful life of the assets.
Valuations are performed every 3-5 years to ensure that the fair value of a revalued asset does not differ materially from its
carrying amount.
Any revaluation surplus is credited to the revaluation reserve included in the equity section of the balance sheet, except to the
extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase
is recognised in profit or loss. A revaluation deficit is recognised in profit or loss, except that a deficit directly offsetting a previous
surplus on the same asset is directly offset against the surplus in the asset revaluation reserve.
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are
capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum
lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are reflected in the income
statement.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no
reasonable certainty that the Company will obtain ownership by the end of the lease term. The depreciation policy for
depreciable leased assets is consistent with that for depreciable asset that are owned as described in 4.9.
Operating lease payments are recognised as an expense in the income statement on a straight line basis over the lease term.
Cost of investment includes purchase cost and acquisition charges such as brokerages, fees, duties and bank regulatory fees.
The Group distinguishes and presents current and non current investment in the Balance Sheet.
b) MEASUREMENT
Current Investments
Current investments are carried at the lower of cost and market value, determined on the basis of aggregate portfolio.
Unrealized gains and losses on current investment is carried at market value are recognized as income or expense.
a) INITIAL RECOGNITION:
on the 2nd of March 2015 and for the immediately succeeding two years the Company is liable to pay income tax at the rate of
10% and thereafter at the rate of 20%.
Pursuant to the approval granted on 5th August 2008 by the Ministry of Industrial Development under “300 Industries
Programme, “Gamata Karmantha Project” referring to Section 20 of the Inland Revenue Act. No.10 of 2006 and Section 11 of
the Inland Revenue (Amendment) Act. No.09 of 2008, the Company has been entitled to a tax holiday period upto a minimum
period of five years and a maximum period of ten years provided certain conditions are met by the Company.
Section 17 of the Greater Colombo Economic Commission Law No. 4 of 1978, under which The Board of Investment (BOI) in Sri
Lanka is set up, has given the BOI the power to grant exemptions from the Inland Revenue Act. The Board on entering into
agreement with the Company has stated that the provisions of the Inland Revenue Act in relation to the imposition, payment,
and recovery of income tax in respect of the profits and income of the enterprise shall not apply for the profits and income of the
enterprise.
Effect of application of deferred taxation as per SLAS 14 Income Taxes (Revised 2005) on entities enjoying a tax
holiday period
During the year the Group commenced application of deferred taxation as per SLAS 14 Income Taxes (Revised 2005) on entities
enjoying tax holiday periods under the Board of Investment Law, as recommended by the “Deferred Tax council ruling for BOI
companies” issued by The Institute of Chartered Accountants of Sri Lanka. The effect of this application has not been accounted
for retrospectively since the effect is immaterial.
Revenues, expenses and assets are recognized net of the amount of sales tax except where the sales tax incurred on a purchase
of assets or service is not recoverable from the taxation authorities in which case the sales tax is recognized as a part of the cost of
the asset or part of the expense items as applicable and receivable and payable that are stated with the amount of sales tax
included. The amount of sales tax recoverable and payable in respect of taxation authorities is included as a part of receivables
and payables in the Balance Sheet.
Borrowing costs are recognised as an expense in the period in which they are incurred, except to the extent where borrowing
costs that are directly attributable to the acquisition, construction, or production of an asset that takes a substantial period of
time to get ready for its intended use or sale, are capitalized as part of that asset.
Inventories are valued at the lower of cost and net realizable value, after making due allowances for obsolete and slow moving
items. Net realizable value is the price at which inventories can be sold in the ordinary course of business less the estimated cost
of completion and the estimated cost necessary to make the sale.
The cost incurred in bringing inventories to its present location and conditions are accounted using the following cost formulae:-
Raw Materials - At purchase cost on first-in first-out basis
Finished Goods & Working-Progress - At the cost of direct materials, direct labour and an appropriate proportion of
manufacturing overheads based on normal operating capacity, but excluding
borrowing costs.
Engineering Stock and
Other Chemicals Stock - At purchase cost on First in First out basis
Net realizable Value is the estimated selling price in the ordinary course of business, less estimated cost of completion and
estimated costs necessary to make the sale.
Southern Salt Company (Private) Limited
b) DEFERRED TAXATION
c) SALES TAX
2.3.3 BORROWING COSTS
2.3.4 INVENTORIES
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
34 35
2.3.13 REVENUE RECOGNITION
2.4 EFFECT OF SRI LANKA ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue and
associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value of the consideration
received or receivable net of trade discounts and sales taxes. The following specific criteria are used for the purpose of
recognition of revenue.
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to
buyer, usually on dispatch of the goods.
Revenue is recognised on a time proportion basis that takes into accounts the effective interest rate on asset.
Dividend Income is recognised when the shareholders’ right to receive the payment is established.
Other income is recognised on an accrual basis.
a) The following standards have been issued by the Institute of Chartered Accountants of Sri Lanka.
- Sri Lanka Accounting Standard 44 Financial Instruments; Presentation (SLAS 44)
- Sri Lanka Accounting Standard 45 Financial Instruments; Recognition and Measurement (SLAS 45)
- Sri Lanka Accounting Standard 39 Share Based Payments (SLAS 39)
The effective date of SLAS 44, 45 and 39 was changed during the year to be effective for financial periods beginning on or after
01 January 2012. These three standards have been amended and forms a part of the new set of financial reporting standards
mentioned under note (b) below.
b) Following the convergence of Sri Lanka Accounting Standards with the International Financial Reporting Standards, the Council
of the Institute of Chartered Accountants of Sri Lanka has adopted a new set of financial reporting standards that would apply
for financial periods beginning on or after 01 January 2012. The application of these financial reporting standards is
substantially different to the prevailing standards.
a) SALES OF GOODS
b) INTEREST
c) DIVIDENDS
d) OTHERS
Long Term Investments
Long term investments are stated at cost. Carrying amounts are reduced to recognize a decline other than temporary,
determined for each investment individually. These reductions for other than temporary declines in carrying amounts are
charged to income statement.
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, where it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed, the
reimbursement is recognised as a separate assets but only when the reimbursement is virtually certain. The expense relating to
any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is recognized as an interest expense.
The Group measures the present value of the promised retirement benefits of gratuity which is a defined benefit plan with the
advise of a qualified actuary, using the Projected Unit Credit (PUC) method for the purpose of determining the charge for any
period before the next regular actuarial valuation fall due and approximate estimation provided by the qualified actuary is used.
Actuarial gain and losses are recognized as income or expense immediately.
Employees are eligible for Employees’ Provident Fund Contributions and Employees’ Trust Fund Contributions in line with the
respective statutes and regulations. The Group contributes 12% and 3% of gross emoluments of employees to Employees’
Provident Fund and Employees’ Trust Fund respectively.
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable
amount. An asset's recoverable amount is the higher of an asset's or cashgenerating unit's fair value less costs to sell and its value
in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of
those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value indicators.
Impairment losses of continuing operations are recognised in the income statement in those expense categories consistent with
the function of the impaired asset, except for property previously revalued where the revaluation was taken to equity. In this case
the impairment is also recognised in equity up to the amount of any previous revaluation.
For assets, an assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an estimate of
recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to
determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount
of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have
been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in the income statement unless the asset is carried at revalued amount, in which case the reversal is treated as a
revaluation increase.
2.3.10 PROVISIONS
2.3.11 RETIREMENT BENEFIT OBLIGATIONS
2.3.12 IMPAIRMENT OF NON FINANCIAL ASSETS
a) DEFINED BENEFIT PLAN – GRATUITY
b) DEFINED CONTRIBUTION PLANS – EMPLOYEES’ PROVIDENT FUND AND EMPLOYEES’ TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
36 37
2.3.13 REVENUE RECOGNITION
2.4 EFFECT OF SRI LANKA ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue and
associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value of the consideration
received or receivable net of trade discounts and sales taxes. The following specific criteria are used for the purpose of
recognition of revenue.
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to
buyer, usually on dispatch of the goods.
Revenue is recognised on a time proportion basis that takes into accounts the effective interest rate on asset.
Dividend Income is recognised when the shareholders’ right to receive the payment is established.
Other income is recognised on an accrual basis.
a) The following standards have been issued by the Institute of Chartered Accountants of Sri Lanka.
- Sri Lanka Accounting Standard 44 Financial Instruments; Presentation (SLAS 44)
- Sri Lanka Accounting Standard 45 Financial Instruments; Recognition and Measurement (SLAS 45)
- Sri Lanka Accounting Standard 39 Share Based Payments (SLAS 39)
The effective date of SLAS 44, 45 and 39 was changed during the year to be effective for financial periods beginning on or after
01 January 2012. These three standards have been amended and forms a part of the new set of financial reporting standards
mentioned under note (b) below.
b) Following the convergence of Sri Lanka Accounting Standards with the International Financial Reporting Standards, the Council
of the Institute of Chartered Accountants of Sri Lanka has adopted a new set of financial reporting standards that would apply
for financial periods beginning on or after 01 January 2012. The application of these financial reporting standards is
substantially different to the prevailing standards.
a) SALES OF GOODS
b) INTEREST
c) DIVIDENDS
d) OTHERS
Long Term Investments
Long term investments are stated at cost. Carrying amounts are reduced to recognize a decline other than temporary,
determined for each investment individually. These reductions for other than temporary declines in carrying amounts are
charged to income statement.
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, where it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed, the
reimbursement is recognised as a separate assets but only when the reimbursement is virtually certain. The expense relating to
any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is recognized as an interest expense.
The Group measures the present value of the promised retirement benefits of gratuity which is a defined benefit plan with the
advise of a qualified actuary, using the Projected Unit Credit (PUC) method for the purpose of determining the charge for any
period before the next regular actuarial valuation fall due and approximate estimation provided by the qualified actuary is used.
Actuarial gain and losses are recognized as income or expense immediately.
Employees are eligible for Employees’ Provident Fund Contributions and Employees’ Trust Fund Contributions in line with the
respective statutes and regulations. The Group contributes 12% and 3% of gross emoluments of employees to Employees’
Provident Fund and Employees’ Trust Fund respectively.
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable
amount. An asset's recoverable amount is the higher of an asset's or cashgenerating unit's fair value less costs to sell and its value
in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of
those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value indicators.
Impairment losses of continuing operations are recognised in the income statement in those expense categories consistent with
the function of the impaired asset, except for property previously revalued where the revaluation was taken to equity. In this case
the impairment is also recognised in equity up to the amount of any previous revaluation.
For assets, an assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an estimate of
recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to
determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount
of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have
been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in the income statement unless the asset is carried at revalued amount, in which case the reversal is treated as a
revaluation increase.
2.3.10 PROVISIONS
2.3.11 RETIREMENT BENEFIT OBLIGATIONS
2.3.12 IMPAIRMENT OF NON FINANCIAL ASSETS
a) DEFINED BENEFIT PLAN – GRATUITY
b) DEFINED CONTRIBUTION PLANS – EMPLOYEES’ PROVIDENT FUND AND EMPLOYEES’ TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
36 37
Revenue from Sale of goods 297,411,339 259,531,518 297,411,339 259,531,518
297,411,339 259,531,518 297,411,339 259,531,518
Group 2011 20110 2011 2010 Rs. Rs. Rs. Rs.
Company
4. PROPERTY, PLANT & EQUIPMENT - GROUP
4.1 GROSS CARRYING AMOUNT Balance
As at Additions/ Disposals/ As at
01.04.2010 Acquisitions Transfers 31.03.2011
At Cost Rs. Rs. Rs. Rs.
Land - 5,223,000 - 5,223,000
Buildings 269,350 2,140,086 - 2,409,436
Plant & Machinery 3,653,600 45,302,704 - 45,460,419
Motor Vehicles 2,854,900 20,927,702 ( 3,495,885) 23,782,602
Furniture and Fittings 229,455 98,507 - 327,962
Factory Equipment 394,600 969,170 - 1,363,770
Office Equipment 83,000 138,921 - 221,921
Name Board 60,849 - - 60,849
Salterns Development 2,741,100 - - 2,741,100
Computers & Accessories - 971,490 - 971,490
10,286,854 75,771,579 ( 3,495,885) 82,562,548
At Valuation
Freehold Lands 186,518,750 - - 186,518,750
Buildings on Freehold Land 49,494,468 - - 49,494,468
Plant & Machinery 50,387,250 - - 50,387,250
286,400,468 - - 286,400,468
Assets on Finance Lease
Plant and Machinery 14,730,000 - - 14,730,000
14,730,000 - - 14,730,000
Total Value of Depreciable Assets 311,417,322 75,771,579 ( 3,495,885) 383,693,016
Balance
Salterns Development * 43,428,412 35,555,746 - 78,984,158
Factory Extension* - 11,274,013 - 11,274,013
Factory Building - 5,809,468 - 5,809,468
Plant Installation - 1,948,512 - 1,948,512
43,428,412 54,587,738 - 98,016,150
Total Gross Carrying Amount 354,845,734 130,359,317 ( 3,495,885) 481,709,166
4.2 IN THE COURSE OF CONSTRUCTION
* Borrowing cost amounts to Rs. 2,388,900/- has been capitalised during the year at the interest rate of 13.5%.
Buildings 39,458 35,138 - 74,596
Plant & Machinery 613,826 2,448,682 - 3,062,508
Motor Vehicles 400,644 1,630,434 - 2,031,078
Furniture and Fittings 72,404 23,767 - 96,171
Factory Equipment 37,525 73,488 - 111,013
Office Equipment 4,442 9,315 - 13,757
Name Board 6,187 9,870 - 16,057
Salterns Development 548,220 274,110 - 822,330
Computer & Accessories - 31,287 - 31,287
1,722,706 4,536,092 - 6,258,798
At Valuation
Buildings on Freehold Land 10,314,643 4,949,447 - 15,264,090
Plant and Machinery 10,498,302 5,038,725 - 15,537,027
20,812,945 9,988,172 - 30,801,117
Assets on Finance Lease
Plant and Machinery 1,103,833 1,473,000 - 2,576,833
1,103,833 1,473,000 - 2,576,833
Total Depreciation 23,639,484 15,997,264 - 39,636,748
4. PROPERTY, PLANT & EQUIPMENT (Contd...)
4.3 DEPRECIATION Balance Balance As at Charge for Transfers/ As at 01.04.2010 the Year Disposals 31.03.2011 At Cost Rs. Rs. Rs. Rs.
At Cost
Land 5,223,000 -
Buildings 2,334,839 229,892
Plant and Machinery 42,397,910 3,039,774
Motor Vehicles 21,751,523 2,454,257
Furniture and Fittings 231,791 157,051
Office Equipment 208,165 78,558
Factory Equipment 1,252,756 357,075
Name Board 44,792 54,661
Salterns Development 1,918,770 2,192,880
Computers & Accessories 940,203 -
76,303,750 8,564,148
At Valuation
Freehold Lands 186,518,750 186,518,750
Buildings on Freehold Land 34,230,378 39,179,825
Plant and Machinery 34,850,223 39,888,948
255,599,351 265,587,523
Assets on Finance Lease
Plant and Machinery 12,153,167 13,626,167
12,153,167 13,626,167
In the Course of Construction
Salterns Development 78,984,158 43,428,412
Factory Extension 11,274,013 -
Factory Building 5,809,468 -
Plant Installation 1,948,512 -
98,016,150 43,428,412
Total Carrying Amounts of Property, Plant and Equipment 442,072,419 331,206,250
4.4 NET BOOK VALUES 2011 2010 Rs. Rs.
3. REVENUE
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
38 39
Revenue from Sale of goods 297,411,339 259,531,518 297,411,339 259,531,518
297,411,339 259,531,518 297,411,339 259,531,518
Group 2011 20110 2011 2010 Rs. Rs. Rs. Rs.
Company
4. PROPERTY, PLANT & EQUIPMENT - GROUP
4.1 GROSS CARRYING AMOUNT Balance
As at Additions/ Disposals/ As at
01.04.2010 Acquisitions Transfers 31.03.2011
At Cost Rs. Rs. Rs. Rs.
Land - 5,223,000 - 5,223,000
Buildings 269,350 2,140,086 - 2,409,436
Plant & Machinery 3,653,600 45,302,704 - 45,460,419
Motor Vehicles 2,854,900 20,927,702 ( 3,495,885) 23,782,602
Furniture and Fittings 229,455 98,507 - 327,962
Factory Equipment 394,600 969,170 - 1,363,770
Office Equipment 83,000 138,921 - 221,921
Name Board 60,849 - - 60,849
Salterns Development 2,741,100 - - 2,741,100
Computers & Accessories - 971,490 - 971,490
10,286,854 75,771,579 ( 3,495,885) 82,562,548
At Valuation
Freehold Lands 186,518,750 - - 186,518,750
Buildings on Freehold Land 49,494,468 - - 49,494,468
Plant & Machinery 50,387,250 - - 50,387,250
286,400,468 - - 286,400,468
Assets on Finance Lease
Plant and Machinery 14,730,000 - - 14,730,000
14,730,000 - - 14,730,000
Total Value of Depreciable Assets 311,417,322 75,771,579 ( 3,495,885) 383,693,016
Balance
Salterns Development * 43,428,412 35,555,746 - 78,984,158
Factory Extension* - 11,274,013 - 11,274,013
Factory Building - 5,809,468 - 5,809,468
Plant Installation - 1,948,512 - 1,948,512
43,428,412 54,587,738 - 98,016,150
Total Gross Carrying Amount 354,845,734 130,359,317 ( 3,495,885) 481,709,166
4.2 IN THE COURSE OF CONSTRUCTION
* Borrowing cost amounts to Rs. 2,388,900/- has been capitalised during the year at the interest rate of 13.5%.
Buildings 39,458 35,138 - 74,596
Plant & Machinery 613,826 2,448,682 - 3,062,508
Motor Vehicles 400,644 1,630,434 - 2,031,078
Furniture and Fittings 72,404 23,767 - 96,171
Factory Equipment 37,525 73,488 - 111,013
Office Equipment 4,442 9,315 - 13,757
Name Board 6,187 9,870 - 16,057
Salterns Development 548,220 274,110 - 822,330
Computer & Accessories - 31,287 - 31,287
1,722,706 4,536,092 - 6,258,798
At Valuation
Buildings on Freehold Land 10,314,643 4,949,447 - 15,264,090
Plant and Machinery 10,498,302 5,038,725 - 15,537,027
20,812,945 9,988,172 - 30,801,117
Assets on Finance Lease
Plant and Machinery 1,103,833 1,473,000 - 2,576,833
1,103,833 1,473,000 - 2,576,833
Total Depreciation 23,639,484 15,997,264 - 39,636,748
4. PROPERTY, PLANT & EQUIPMENT (Contd...)
4.3 DEPRECIATION Balance Balance As at Charge for Transfers/ As at 01.04.2010 the Year Disposals 31.03.2011 At Cost Rs. Rs. Rs. Rs.
At Cost
Land 5,223,000 -
Buildings 2,334,839 229,892
Plant and Machinery 42,397,910 3,039,774
Motor Vehicles 21,751,523 2,454,257
Furniture and Fittings 231,791 157,051
Office Equipment 208,165 78,558
Factory Equipment 1,252,756 357,075
Name Board 44,792 54,661
Salterns Development 1,918,770 2,192,880
Computers & Accessories 940,203 -
76,303,750 8,564,148
At Valuation
Freehold Lands 186,518,750 186,518,750
Buildings on Freehold Land 34,230,378 39,179,825
Plant and Machinery 34,850,223 39,888,948
255,599,351 265,587,523
Assets on Finance Lease
Plant and Machinery 12,153,167 13,626,167
12,153,167 13,626,167
In the Course of Construction
Salterns Development 78,984,158 43,428,412
Factory Extension 11,274,013 -
Factory Building 5,809,468 -
Plant Installation 1,948,512 -
98,016,150 43,428,412
Total Carrying Amounts of Property, Plant and Equipment 442,072,419 331,206,250
4.4 NET BOOK VALUES 2011 2010 Rs. Rs.
3. REVENUE
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
38 39
Land 5,223,000 5,223,000
Building 160,910 2,140,086 - 2,300,996
Plant & Machinery 3,653,600 36,393,319 - 40,046,919
Motor Vehicles 2,854,900 24,423,587 (3,495,885) 23,782,602
Furniture and Fittings 196,955 98,507 - 295,462
Factory Equipment 394,600 628,405 - 1,023,005
Office Equipment 83,000 79,571 - 162,571
Name Board 60,849 - - 60,849
Salterns Development 2,741,100 - - 2,741,100
Computers & Accessories - 971,490 - 971,490
10,145,914 69,957,964 (3,495,885) 76,607,993
At Valuation
Freehold Lands 186,518,750 - - 186,518,750
Buildings on Freehold Land 49,494,468 - - 49,494,468
Plant & Machinery 50,387,250 - - 50,387,250
286,400,468 - - 286,400,468
Assets on Finance Lease
Plant and Machinery 14,730,000 - - 14,730,000
14,730,000 - - 14,730,000
Total Value of Depreciable Assets 311,276,382 69,957,964 (3,495,885) 377,738,461
Salterns Development 20,744,064 27,977,613 - 48,721,677
Factory Extension - 11,274,013 - 11,274,013
20,744,064 39,251,625 - 59,995,689
Total Gross Carrying Amount 332,020,446 109,209,589 (3,495,885) 437,734,150
4.6 IN THE COURSE OF CONSTRUCTION
4. PROPERTY, PLANT & EQUIPMENT - COMPANY
Balance Additions/ Disposals/ Balance
As at Transfers/ Transfers As at 01.04.2010 Acquisitions 31.03.2011 At Cost Rs. Rs. Rs. Rs.
4.5 GROSS CARRYING AMOUNTS
At Cost
Land `5,223,000 -
Building 2,261,107 145,318
Plant and Machinery 37,345,310 3,039,774
Motor Vehicles 21,751,523 2,454,257
Furniture and Fittings 207,541 129,551
Factory Equipment 930,177 357,075
Office Equipment 146,514 78,558
Name Board 48,576 54,661
Salterns Development 1,918,770 2,192,880
Computers & Accessories 940,203 -
70,772,723 8,452,074
At Valuation
Freehold Lands 186,518,750 186,518,750
Buildings on Freehold Land 34,230,378 39,179,824
Plant and Machinery 34,850,223 39,888,948
255,599,351 265,587,522
Assets on Finance Lease
Plant and Machinery 12,153,167 13,626,167
12,153,167 13,626,167
In the Course of Construction
Salterns Development 48,721,677 20,744,064
Factory Extension 11,274,013 -
59,995,689 20,744,064
Total Carrying Amounts of Property, Plant and Equipment 398,520,931 308,409,827
4.8 NET BOOK VALUES 2011 2010 Rs. Rs.
Building 15,592 24,296 39,888
Plant & Machinery 613,826 2,087,782 - 2,701,608
Motor Vehicles 400,644 1,630,434 - 2,031,078
Furniture and Fittings 67,404 20,517 - 87,921
Factory Equipment 37,525 55,302 - 92,827
Name Board 6,187 6,086 - 12,273
Office Equipment 4,442 11,615 - 16,057
Salterns Development 548,220 274,110 - 822,330
Computers & Accessories - 31,287 - 31,287
1,693,840 4,141,430 - 5,835,270
At Valuation
Buildings on Freehold Land 10,314,643 4,949,447 - 15,264,090
Plant and Machinery 10,498,302 5,038,725 - 15,537,027
20,812,945 9,988,172 - 30,801,117
Assets on Finance Lease
Plant and Machinery 1,103,833 1,473,000 - 2,576,833
1,103,833 1,473,000 - 2,576,833
Total Depreciation 23,610,618 15,602,602 - 39,213,220
4. PROPERTY, PLANT & EQUIPMENT (Contd...)
4.7 DEPRECIATION Balance Charge for Transfers/ Balance As at the year/ Disposals As at 01.04.2010 Transfers 31.03.2011 At Cost Rs. Rs. Rs. Rs.
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
40 41
Land 5,223,000 5,223,000
Building 160,910 2,140,086 - 2,300,996
Plant & Machinery 3,653,600 36,393,319 - 40,046,919
Motor Vehicles 2,854,900 24,423,587 (3,495,885) 23,782,602
Furniture and Fittings 196,955 98,507 - 295,462
Factory Equipment 394,600 628,405 - 1,023,005
Office Equipment 83,000 79,571 - 162,571
Name Board 60,849 - - 60,849
Salterns Development 2,741,100 - - 2,741,100
Computers & Accessories - 971,490 - 971,490
10,145,914 69,957,964 (3,495,885) 76,607,993
At Valuation
Freehold Lands 186,518,750 - - 186,518,750
Buildings on Freehold Land 49,494,468 - - 49,494,468
Plant & Machinery 50,387,250 - - 50,387,250
286,400,468 - - 286,400,468
Assets on Finance Lease
Plant and Machinery 14,730,000 - - 14,730,000
14,730,000 - - 14,730,000
Total Value of Depreciable Assets 311,276,382 69,957,964 (3,495,885) 377,738,461
Salterns Development 20,744,064 27,977,613 - 48,721,677
Factory Extension - 11,274,013 - 11,274,013
20,744,064 39,251,625 - 59,995,689
Total Gross Carrying Amount 332,020,446 109,209,589 (3,495,885) 437,734,150
4.6 IN THE COURSE OF CONSTRUCTION
4. PROPERTY, PLANT & EQUIPMENT - COMPANY
Balance Additions/ Disposals/ Balance
As at Transfers/ Transfers As at 01.04.2010 Acquisitions 31.03.2011 At Cost Rs. Rs. Rs. Rs.
4.5 GROSS CARRYING AMOUNTS
At Cost
Land `5,223,000 -
Building 2,261,107 145,318
Plant and Machinery 37,345,310 3,039,774
Motor Vehicles 21,751,523 2,454,257
Furniture and Fittings 207,541 129,551
Factory Equipment 930,177 357,075
Office Equipment 146,514 78,558
Name Board 48,576 54,661
Salterns Development 1,918,770 2,192,880
Computers & Accessories 940,203 -
70,772,723 8,452,074
At Valuation
Freehold Lands 186,518,750 186,518,750
Buildings on Freehold Land 34,230,378 39,179,824
Plant and Machinery 34,850,223 39,888,948
255,599,351 265,587,522
Assets on Finance Lease
Plant and Machinery 12,153,167 13,626,167
12,153,167 13,626,167
In the Course of Construction
Salterns Development 48,721,677 20,744,064
Factory Extension 11,274,013 -
59,995,689 20,744,064
Total Carrying Amounts of Property, Plant and Equipment 398,520,931 308,409,827
4.8 NET BOOK VALUES 2011 2010 Rs. Rs.
Building 15,592 24,296 39,888
Plant & Machinery 613,826 2,087,782 - 2,701,608
Motor Vehicles 400,644 1,630,434 - 2,031,078
Furniture and Fittings 67,404 20,517 - 87,921
Factory Equipment 37,525 55,302 - 92,827
Name Board 6,187 6,086 - 12,273
Office Equipment 4,442 11,615 - 16,057
Salterns Development 548,220 274,110 - 822,330
Computers & Accessories - 31,287 - 31,287
1,693,840 4,141,430 - 5,835,270
At Valuation
Buildings on Freehold Land 10,314,643 4,949,447 - 15,264,090
Plant and Machinery 10,498,302 5,038,725 - 15,537,027
20,812,945 9,988,172 - 30,801,117
Assets on Finance Lease
Plant and Machinery 1,103,833 1,473,000 - 2,576,833
1,103,833 1,473,000 - 2,576,833
Total Depreciation 23,610,618 15,602,602 - 39,213,220
4. PROPERTY, PLANT & EQUIPMENT (Contd...)
4.7 DEPRECIATION Balance Charge for Transfers/ Balance As at the year/ Disposals As at 01.04.2010 Transfers 31.03.2011 At Cost Rs. Rs. Rs. Rs.
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
40 41
Freehold Land 42,428,247 - 42,428,247 42,428,247
Building on Freehold Land 26,822,796 10,729,755 16,093,041 18,775,320
Plant and Machinery 27,840,599 11,027,697 16,812,902 19,596,962
Cumulative Depreciation Net Carrying Net Carrying Class of Asset of assets were Amount Amount Cost carried at cost 2011 2010 Rs. Rs. Rs. Rs.
4. PROPERTY, PLANT & EQUIPMENT (Contd...)
4.9
THE GROUP ARE ESTIMATED AS FOLLOWS.
THE USEFUL LIVES OF THE ASSETS OF
2011 2010
Buildings 10 Years 10 Years
Plant and Machinery 10 Years 10 Years
Motor Vehicles 10 Years 10 Years
Furniture and Fittings 10 Years 10 Years
Factory Equipments 10 Years 10 Years
Office Equipments 10 Years 10 Years
Salterns Development 10 Years 10 Years
Name Board 10 Years 10 Years
Computer & Accessories 10 Years 10 Years
Leasehold Land During the lease period from the month of operation commenced.
Non Current
Investment in Equity Securities - - 11,823,540 5,000,000
Acquisition of Investments - - 50,000,000 6,823,540
Balance as at 31 March (5.1) - - 61,823,540 11,823,540
5. INVESTMENTS Group Company
2011 2010 2011 2010 Rs. Rs. Rs. Rs.
Group Company 2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Acquisition of Investments in Fixed Deposits 150,000,000 - 150,000,000 -
Balance as at 31 March 150,000,000 - 150,000,000 -
5.2 INVESTMENT
Investments with Other Parties:
Southern Salt Co. (Pvt) Ltd 100% 100% 61,823,540 61,823,540 11,823,540 11,823,540
Total Investments in Non-Quoted Equity Securities 61,823,540 61,823,540 11,823,540 11,823,540
Total Gross Carrying Value of Investments in
Equity Securities 61,823,540 11,823,540
Provision for Decline in Value Other than Temporary - -
Total Net Carrying Value of Investments 61,823,540 11,823,540
Carrying Directors' Carrying Directors' % of Holding Value Valuation Value Valuation 2011 2010 2011 2011 2010 2010 Rs. Rs. Rs. Rs.
5.1 NON-QUOTED - COMPANY
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
As at the Beginning of the Year 1,200,000 1,200,000 - -
As at the End of the Year 1,200,000 1,200,000 - -
Leasehold land obtained for a period of 30 years for the purpose of establishment of a saltern and other related activities.
6. LEASEHOLD LAND
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Raw Materials 13,104,929 1,348,752 11,722,727 1,348,752
Finished Goods 7,199,785 3,080,749 7,199,785 3,080,749
Packing Materials 7,006,368 1,703,515 7,006,368 1,703,515
Other Chemical Stocks 939,500 330,218 939,500 330,218
Engineering Stocks 940,753 549,201 940,754 549,201
29,191,336 7,012,435 27,809,135 7,012,435
7. INVENTORIES
Group Company2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Trade Debtors - Others 56 061 232 44 268 535 56 061 232 44 268 535
Less : Provision for Doubtful Debts (1,139,843) (1,139,843) (1,139,843) (1,139,843)
54,921,389 43,128,692 54,921,389 43,128,692
Other Debtors-Related Parties (8.1) 96,186,331 108,296,070 98,275,295 126,258,681
Advances, Prepayments and Deposits 25,308,574 3,001,593 16,647,962 1,536,539
176,416,295 154,426,355 169,844,646 170,923,912
8. TRADE AND OTHER RECEIVABLES
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
42 43
Freehold Land 42,428,247 - 42,428,247 42,428,247
Building on Freehold Land 26,822,796 10,729,755 16,093,041 18,775,320
Plant and Machinery 27,840,599 11,027,697 16,812,902 19,596,962
Cumulative Depreciation Net Carrying Net Carrying Class of Asset of assets were Amount Amount Cost carried at cost 2011 2010 Rs. Rs. Rs. Rs.
4. PROPERTY, PLANT & EQUIPMENT (Contd...)
4.9
THE GROUP ARE ESTIMATED AS FOLLOWS.
THE USEFUL LIVES OF THE ASSETS OF
2011 2010
Buildings 10 Years 10 Years
Plant and Machinery 10 Years 10 Years
Motor Vehicles 10 Years 10 Years
Furniture and Fittings 10 Years 10 Years
Factory Equipments 10 Years 10 Years
Office Equipments 10 Years 10 Years
Salterns Development 10 Years 10 Years
Name Board 10 Years 10 Years
Computer & Accessories 10 Years 10 Years
Leasehold Land During the lease period from the month of operation commenced.
Non Current
Investment in Equity Securities - - 11,823,540 5,000,000
Acquisition of Investments - - 50,000,000 6,823,540
Balance as at 31 March (5.1) - - 61,823,540 11,823,540
5. INVESTMENTS Group Company
2011 2010 2011 2010 Rs. Rs. Rs. Rs.
Group Company 2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Acquisition of Investments in Fixed Deposits 150,000,000 - 150,000,000 -
Balance as at 31 March 150,000,000 - 150,000,000 -
5.2 INVESTMENT
Investments with Other Parties:
Southern Salt Co. (Pvt) Ltd 100% 100% 61,823,540 61,823,540 11,823,540 11,823,540
Total Investments in Non-Quoted Equity Securities 61,823,540 61,823,540 11,823,540 11,823,540
Total Gross Carrying Value of Investments in
Equity Securities 61,823,540 11,823,540
Provision for Decline in Value Other than Temporary - -
Total Net Carrying Value of Investments 61,823,540 11,823,540
Carrying Directors' Carrying Directors' % of Holding Value Valuation Value Valuation 2011 2010 2011 2011 2010 2010 Rs. Rs. Rs. Rs.
5.1 NON-QUOTED - COMPANY
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
As at the Beginning of the Year 1,200,000 1,200,000 - -
As at the End of the Year 1,200,000 1,200,000 - -
Leasehold land obtained for a period of 30 years for the purpose of establishment of a saltern and other related activities.
6. LEASEHOLD LAND
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Raw Materials 13,104,929 1,348,752 11,722,727 1,348,752
Finished Goods 7,199,785 3,080,749 7,199,785 3,080,749
Packing Materials 7,006,368 1,703,515 7,006,368 1,703,515
Other Chemical Stocks 939,500 330,218 939,500 330,218
Engineering Stocks 940,753 549,201 940,754 549,201
29,191,336 7,012,435 27,809,135 7,012,435
7. INVENTORIES
Group Company2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Trade Debtors - Others 56 061 232 44 268 535 56 061 232 44 268 535
Less : Provision for Doubtful Debts (1,139,843) (1,139,843) (1,139,843) (1,139,843)
54,921,389 43,128,692 54,921,389 43,128,692
Other Debtors-Related Parties (8.1) 96,186,331 108,296,070 98,275,295 126,258,681
Advances, Prepayments and Deposits 25,308,574 3,001,593 16,647,962 1,536,539
176,416,295 154,426,355 169,844,646 170,923,912
8. TRADE AND OTHER RECEIVABLES
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
42 43
8.1 OTHER RECEIVABLES FROM RELATED PARTIES
Raigam Marketing Services (Pvt) Ltd Parent Company 65,434,360 78,044,455 65,434,360 78,044,455
Dream Life Science (Pvt) Ltd Other Related Party 19,218,936 18,948,000 19,218,936 18,948,000
Raigam Herbal Remedies (Pvt) Ltd Other Related Party 8,556,500 8,556,500 8,556,500 8,556,500
Raigam Eastern Salt Company (Pvt) Ltd Other Related Party 1,165,890 936,470 1,165,890 936,470
Southern Salt Company (Pvt) Ltd Subsidiary Company - - 2,088,964 17,962,611
Raigam Distributors (Pvt) Ltd Other Related Party 1,810,645 1 ,810,645 1,810,645 1,810,645
96,186,331 108,296,070 98,275,295 126,258,681
Group Company2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Relationship
9. STATED CAPITAL 2011 2010
Number Rs. Number Rs.
Fully Paid Ordinary Shares 87,500,010 404,414,629 20,441,464 204,414,629
Issue of Shares for Non Cash Consideration 194,707,310 200,000,000 20,000,000 200,000,000
Transferred to Stated Capital during the Year from
Retained Earnings - 11 - 11
282,207,320 604,414,640 40,441,464 404,414,640
Share Split (1:5) - - 202,207,320 -
Issue of Shares at 2.50 Per Share - - 80,000,000 200,000,000
Balance as at the End of the Year 282,207,320 604,414,640 282,207,320 604,414,640
10. INTEREST BEARING LOANS AND BORROWINGS - GROUP
Amount Amount Amount AmountRepayable Repayable 2011 Repayable Repayable 2010
Within 1 Year After 1 Year Total Within 1 Year After 1 Year TotalRs. Rs. Rs. Rs. Rs. Rs
Bank Loans (10.1) 4,000,000 983,586 4,983,586 4,000,000 4,666,666 8,666,666
Finance Leases (10.2) 3,709,625 5,800,072 9,509,697 3,102,133 9,427,697 12,529,830
Bank Overdrafts (19.2) 108,211,395 - 108,211,395 27,593,131 - 27,593,131
115,921,020 6,783,658 122,704,678 34,695,264 14,094,363 48,789,627
10.1 BANK LOANS
10.2 FINANCE LEASES
As at Loans As at
01.04.2010 Obtained Repayments 31.03.2011
Rs. Rs. Rs. Rs.
People's Bank 8,666,666 - (3,683,080) 4,983,586
8,666,666 - (3,683,080) 4,983,586
New Leases /
As at Hire Purchase As at
01.04.2010 Obtained Repayments 31.03.2011
Rs. Rs. Rs. Rs.
Sampath Bank PLC 15,863,955 - (4,803,835) 11,060,120
15,863,955 - (4,803,835) 11,060,120
Gross Liability 15,863,955 11,060,120
Finance Charges Allocated to Future Periods (3,334,125) (1,550,423)
Net Liability 12,529,830 9,509,697
10.3 INTEREST BEARING LOANS AND BORROWINGS - COMPANY
Amount Amount Amount AmountRepayable Repayable 2011 Repayable Repayable 2010
Within 1 Year After 1 Year Total Within 1 Year After 1 Year TotalRs. Rs. Rs. Rs. Rs. Rs
Bank Loans (10.4) 4,000,000 983,586 4,983,586 4,000,000 4,666,667 8,666,667
Finance Leases (10.5) 3,709,625 5,800,072 9,509,697 3,102,133 9,427,697 12,529,830
Bank Overdrafts (19.2) 106,853,143 - 106,853,143 27,406,317 - 27,406,317
114,562,768 6,783,658 121,346,425 34,508,450 14,094,364 48,602,814
10.4 BANK LOANS As at Loans As atTerms of
Interst Rate Repayments 01.04.2010 Obtained Repayment 31.03.2011Rs. Rs. Rs. Rs
People's Bank 16% 60 Installments 8,666,666 - (3,683,080) 4,983,586
8,666,666 - (3,683,080) 4,983,586
10.5 FINANCE LEASES As at New Leases As at01.04.2010 Obtained Repayment 31.03.2011
Rs. Rs. Rs. Rs.
Sampath Bank PLC
15,863,955 - (4,803,835) 11,060,120
Gross Liability 15,863,955 11,060,120
Finance Charges allocated to Future Periods ( 3,334,125) (1,550,423)
Net Liability 12,529,830 9,509,697
15,863,955 - (4,803,835) 11,060,120
11. NON INTEREST BEARING LOANS AND BORROWINGS - (COMPANY & GROUP)
Amount Amount Amount AmountRepayable Repayable 2011 Repayable Repayable 2010
Relationship Within 1 Year After 1 Year Total Within 1 Year After 1 Year Total
Raigam Marketing
Service (Pvt) Ltd (11.1) Parent Company - - - 23,189,355 - 23,189,355
- - - 23,189,355 - 23,189,355
The loan has been obtained at a free interest rate.
11.1 INTER COMPANY LOAN As at Loans As at
01.04.2010 Obtained Repayment 31.03.2011
Rs. Rs. Rs. Rs.
Raigam Marketing Services (Pvt) Ltd 23,189,355 - (23,189,355) -
23,189,355 - (23,189,355)
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
44 45
10. INTEREST BEARING LOANS AND BORROWINGS - COMPANY
8.1 OTHER RECEIVABLES FROM RELATED PARTIES
Raigam Marketing Services (Pvt) Ltd Parent Company 65,434,360 78,044,455 65,434,360 78,044,455
Dream Life Science (Pvt) Ltd Other Related Party 19,218,936 18,948,000 19,218,936 18,948,000
Raigam Herbal Remedies (Pvt) Ltd Other Related Party 8,556,500 8,556,500 8,556,500 8,556,500
Raigam Eastern Salt Company (Pvt) Ltd Other Related Party 1,165,890 936,470 1,165,890 936,470
Southern Salt Company (Pvt) Ltd Subsidiary Company - - 2,088,964 17,962,611
Raigam Distributors (Pvt) Ltd Other Related Party 1,810,645 1 ,810,645 1,810,645 1,810,645
96,186,331 108,296,070 98,275,295 126,258,681
Group Company2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Relationship
9. STATED CAPITAL 2011 2010
Number Rs. Number Rs.
Fully Paid Ordinary Shares 87,500,010 404,414,629 20,441,464 204,414,629
Issue of Shares for Non Cash Consideration 194,707,310 200,000,000 20,000,000 200,000,000
Transferred to Stated Capital during the Year from
Retained Earnings - 11 - 11
282,207,320 604,414,640 40,441,464 404,414,640
Share Split (1:5) - - 202,207,320 -
Issue of Shares at 2.50 Per Share - - 80,000,000 200,000,000
Balance as at the End of the Year 282,207,320 604,414,640 282,207,320 604,414,640
10. INTEREST BEARING LOANS AND BORROWINGS - GROUP
Amount Amount Amount AmountRepayable Repayable 2011 Repayable Repayable 2010
Within 1 Year After 1 Year Total Within 1 Year After 1 Year TotalRs. Rs. Rs. Rs. Rs. Rs
Bank Loans (10.1) 4,000,000 983,586 4,983,586 4,000,000 4,666,666 8,666,666
Finance Leases (10.2) 3,709,625 5,800,072 9,509,697 3,102,133 9,427,697 12,529,830
Bank Overdrafts (19.2) 108,211,395 - 108,211,395 27,593,131 - 27,593,131
115,921,020 6,783,658 122,704,678 34,695,264 14,094,363 48,789,627
10.1 BANK LOANS
10.2 FINANCE LEASES
As at Loans As at
01.04.2010 Obtained Repayments 31.03.2011
Rs. Rs. Rs. Rs.
People's Bank 8,666,666 - (3,683,080) 4,983,586
8,666,666 - (3,683,080) 4,983,586
New Leases /
As at Hire Purchase As at
01.04.2010 Obtained Repayments 31.03.2011
Rs. Rs. Rs. Rs.
Sampath Bank PLC 15,863,955 - (4,803,835) 11,060,120
15,863,955 - (4,803,835) 11,060,120
Gross Liability 15,863,955 11,060,120
Finance Charges Allocated to Future Periods (3,334,125) (1,550,423)
Net Liability 12,529,830 9,509,697
10.3 INTEREST BEARING LOANS AND BORROWINGS - COMPANY
Amount Amount Amount AmountRepayable Repayable 2011 Repayable Repayable 2010
Within 1 Year After 1 Year Total Within 1 Year After 1 Year TotalRs. Rs. Rs. Rs. Rs. Rs
Bank Loans (10.4) 4,000,000 983,586 4,983,586 4,000,000 4,666,667 8,666,667
Finance Leases (10.5) 3,709,625 5,800,072 9,509,697 3,102,133 9,427,697 12,529,830
Bank Overdrafts (19.2) 106,853,143 - 106,853,143 27,406,317 - 27,406,317
114,562,768 6,783,658 121,346,425 34,508,450 14,094,364 48,602,814
10.4 BANK LOANS As at Loans As atTerms of
Interst Rate Repayments 01.04.2010 Obtained Repayment 31.03.2011Rs. Rs. Rs. Rs
People's Bank 16% 60 Installments 8,666,666 - (3,683,080) 4,983,586
8,666,666 - (3,683,080) 4,983,586
10.5 FINANCE LEASES As at New Leases As at01.04.2010 Obtained Repayment 31.03.2011
Rs. Rs. Rs. Rs.
Sampath Bank PLC
15,863,955 - (4,803,835) 11,060,120
Gross Liability 15,863,955 11,060,120
Finance Charges allocated to Future Periods ( 3,334,125) (1,550,423)
Net Liability 12,529,830 9,509,697
15,863,955 - (4,803,835) 11,060,120
11. NON INTEREST BEARING LOANS AND BORROWINGS - (COMPANY & GROUP)
Amount Amount Amount AmountRepayable Repayable 2011 Repayable Repayable 2010
Relationship Within 1 Year After 1 Year Total Within 1 Year After 1 Year Total
Raigam Marketing
Service (Pvt) Ltd (11.1) Parent Company - - - 23,189,355 - 23,189,355
- - - 23,189,355 - 23,189,355
The loan has been obtained at a free interest rate.
11.1 INTER COMPANY LOAN As at Loans As at
01.04.2010 Obtained Repayment 31.03.2011
Rs. Rs. Rs. Rs.
Raigam Marketing Services (Pvt) Ltd 23,189,355 - (23,189,355) -
23,189,355 - (23,189,355)
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
44 45
10. INTEREST BEARING LOANS AND BORROWINGS - COMPANY
12.3 PRINCIPAL ASSUMPTIONS IN APPLYING GRATUITY FORMULAE
Messrs. Actuarial & Management Consultants (Pvt) Ltd., Actuaries carried out an actuarial valuation of the defined benefit plan
gratuity on 31.03.2011 and Liability related to the prior year has been accounted using formula method. Appropriate
assumptions were used in determining the cost of retirement benefits and the principal assumptions used are given below.
2011 2010
Staff Turnover Ratio 5% 5%
Salary Increase Rate 10% 10%
Discount Rate 11.0% 9.5%
Retirement Age 55 Years 55 Years
13. INCOME TAX - GROUP/COMPANY
The major components of income tax expense for the Years ended 31 March are as follows :
Income Statement 2011 2010
Current Income Tax Rs. Rs.Current Income Tax Charge (13.1) 6,498,359 -
Deferred Income Tax
Deferred Taxation Charge / (Reversal) (13.2) (202,057) -
Income tax expense reported in the Income Statement 6,296,302 -
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Trade Payables - Others 2,165,510 1,417,290 2,165,510 1,417,290
- Related Parties (14.1) 263,597 1,856,808 263,597 1,856,808
Other Payables - Related Parties (14.2) 793,000 793,000 43,000 43,000
Sundry Creditors Including Accrued Expenses 15,020,158 18,537,956 13,808,883 18,511,664
Excess Funds Refundable Against IPO Proceeds 318,000 928,118,044 318,000 928,118,044
18,560,265 950,723,098 16,598,990 949,946,806
Relationship
Puttalam Salt Ltd Other Related Party 263,597 1,856,808 263,597 1,856,808
263,597 1,856,808 263,597 1,856,808
Relationship
Raigam Marketing Services (Pvt) Ltd Parent Company 750,000 750,000 - -
Raigam Creations (Pvt) Ltd Other Related Party 43,000 43,000 43,000 43,000
793,000 793,000 43,000 43,000
14.1 TRADE PAYABLES TO THE RELATED PARTIES
14.2 OTHER PAYABLES TO RELATEDPARTIES
14. TRADE AND OTHER PAYABLES
12. OTHER DEFERRED LIABILITIES
2011 2010
Rs. Rs.
Accounting Profit Before Tax 64,161,794 71,323,104
Aggregate Disallowed Items (64,161,794) (71,323,104)
- -
Other Income 20,928,425 -
Tax Losses brought forward and utilised (2,636,071) -
Taxable Profit 18,292,354 -
Current Income Tax Expense 35% 6,402,324 -
Social Responsibility Levy 1.5% 96,035 -
Current Income Tax Expense 6,498,359 -
There is no income tax expense on profit of trade and business. (Refer Note No. 2.3.2)
13.1 A RECONCILIATION BETWEEN TAX EXPENSE AND THE PRODUCT OF ACCOUNTING
PROFIT MULTIPLIED BY THE STATUTORY TAX RATE IS AS FOLLOWS
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
46 47
13.2 DEFERRED TAX ASSETS, LIABILITIES AND INCOME TAX RELATE TO THE FOLLOWINGS;
Balance Sheet Income Statement2011 2011
Rs. Rs.
Deferred Tax Liability / (Assets)
Capital Allowances for Tax Purposes (82,815) (82,815)
(82,815)
Deferred Tax Assets
Defined Benefit Plans (119,242) (119,242)
(119,242)
(202,057)
Net Deferred Tax Liability / (Asset) (202,057)
Deferred Income Tax Income / (Expense )
12.3 PRINCIPAL ASSUMPTIONS IN APPLYING GRATUITY FORMULAE
Messrs. Actuarial & Management Consultants (Pvt) Ltd., Actuaries carried out an actuarial valuation of the defined benefit plan
gratuity on 31.03.2011 and Liability related to the prior year has been accounted using formula method. Appropriate
assumptions were used in determining the cost of retirement benefits and the principal assumptions used are given below.
2011 2010
Staff Turnover Ratio 5% 5%
Salary Increase Rate 10% 10%
Discount Rate 11.0% 9.5%
Retirement Age 55 Years 55 Years
13. INCOME TAX - GROUP/COMPANY
The major components of income tax expense for the Years ended 31 March are as follows :
Income Statement 2011 2010
Current Income Tax Rs. Rs.Current Income Tax Charge (13.1) 6,498,359 -
Deferred Income Tax
Deferred Taxation Charge / (Reversal) (13.2) (202,057) -
Income tax expense reported in the Income Statement 6,296,302 -
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Trade Payables - Others 2,165,510 1,417,290 2,165,510 1,417,290
- Related Parties (14.1) 263,597 1,856,808 263,597 1,856,808
Other Payables - Related Parties (14.2) 793,000 793,000 43,000 43,000
Sundry Creditors Including Accrued Expenses 15,020,158 18,537,956 13,808,883 18,511,664
Excess Funds Refundable Against IPO Proceeds 318,000 928,118,044 318,000 928,118,044
18,560,265 950,723,098 16,598,990 949,946,806
Relationship
Puttalam Salt Ltd Other Related Party 263,597 1,856,808 263,597 1,856,808
263,597 1,856,808 263,597 1,856,808
Relationship
Raigam Marketing Services (Pvt) Ltd Parent Company 750,000 750,000 - -
Raigam Creations (Pvt) Ltd Other Related Party 43,000 43,000 43,000 43,000
793,000 793,000 43,000 43,000
14.1 TRADE PAYABLES TO THE RELATED PARTIES
14.2 OTHER PAYABLES TO RELATEDPARTIES
14. TRADE AND OTHER PAYABLES
12. OTHER DEFERRED LIABILITIES
2011 2010
Rs. Rs.
Accounting Profit Before Tax 64,161,794 71,323,104
Aggregate Disallowed Items (64,161,794) (71,323,104)
- -
Other Income 20,928,425 -
Tax Losses brought forward and utilised (2,636,071) -
Taxable Profit 18,292,354 -
Current Income Tax Expense 35% 6,402,324 -
Social Responsibility Levy 1.5% 96,035 -
Current Income Tax Expense 6,498,359 -
There is no income tax expense on profit of trade and business. (Refer Note No. 2.3.2)
13.1 A RECONCILIATION BETWEEN TAX EXPENSE AND THE PRODUCT OF ACCOUNTING
PROFIT MULTIPLIED BY THE STATUTORY TAX RATE IS AS FOLLOWS
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
46 47
13.2 DEFERRED TAX ASSETS, LIABILITIES AND INCOME TAX RELATE TO THE FOLLOWINGS;
Balance Sheet Income Statement2011 2011
Rs. Rs.
Deferred Tax Liability / (Assets)
Capital Allowances for Tax Purposes (82,815) (82,815)
(82,815)
Deferred Tax Assets
Defined Benefit Plans (119,242) (119,242)
(119,242)
(202,057)
Net Deferred Tax Liability / (Asset) (202,057)
Deferred Income Tax Income / (Expense )
17. EARNINGS PER SHARE
17.1 Basic Earnings Per Share is calculated by dividing the profit for the year attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year. The weighted average number of ordinary shares outstanding during the year
and the previous year are adjusted for events, if any, that have changed the number of ordinary shares outstanding, without a
corresponding change in the resources such as a bonus issue.
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Interest Income 20,928,425 14,001 20,928,425 14,001
20,928,425 14,001 20,928,425 14,001
15. OTHER INCOME
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Interest Charges 7,435,597 6,323,978 7,390,147 6,309,463
Lease Interest Charges 1,783,700 1,140,030 1,783,700 1,140,030
9,219,297 7,464,008 9,173,847 7,449,493
16. FINANCE COST
17.2 The following reflects the income and share data used in the Basic Earnings Per Share computation.
Group Company
2011 2010 2011 2010
Amount Used as the Numerator: Rs. Rs. Rs. Rs.
Net Profit Attributable to Ordinary Shareholders for
Basic Earnings Per Share 57,865,492 51,256,027 65,026,802 53,188,775
2011 2010 2011 2010
Number of Ordinary Shares Used as Denominator: Number Number Number Number
Weighted Average Number of Ordinary Shares in
Issue Applicable to Basic Earning Per Share 282,207,320 282,207,320 282,207,320 282,207,320
Group Company 2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Included in Cost of Sales
Depreciation 13,297,844 10,275,112 12,907,914 10,275,112
Staff Costs includes 40,117,153 31,848,525 40,117,153 31,826,066
- Defined Benefit Plan Costs - Gratuity 531,045 - 531,045 (4,592)
- Defined Contribution Plan Costs - EPF & ETF 2,471,044 2,243,528 2,471,044 2,243,528
Depreciation 2,694,687 1,143,727 2,694,687 1,131,287
Research & Development Expenditure Written Off - 338,000 - -
Staff Costs includes 24,276,041 - 19,335,803 12,273,224
- Defined Benefit Plan Costs -Gratuity - (21,480) - (21,480)
- Defined Contribution Plan Costs - EPF & ETF 391,495 974,555 391,495 974,555
Other 1,503,551 - 1,503,551 -
IPO Expenses 2,098,011 6,612,172 2,098,011 6,612,172
Audit Fee & Expenses 190,600 143,750 160,000 118,000
Loss on Disposal of Property, Plant and Equipment 103,028 1,175,333 103,028 1,775,333
Included in Administrative Expenses
18. PROFIT FROM CONTINUING OPERATIONS
19. CASH AND CASH EQUIVALENTS IN CASH FLOW STATEMENT
19.1 FAVOURABLE CASH & CASH EQUIVALENT BALANCES
19.2 UNFAVOURABLE CASH & CASH EQUIVALENT BALANCES
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Cash & Bank Balances 5,741,719 1,130,918,151 5,673,078 1,130,838,150
Bank Overdrafts (10) (108,211,395) (27,593,131) (106,853,143) (27,406,317)
Total Cash and Cash Equivalents for the
Purpose of Cash Flow Statement (102,469,676) 1,103,325,020 (101,180,065) 1,103,431,833
20. COMMITMENTS AND CONTINGENCIES
20.1 CAPITAL EXPENDITURE COMMITMENTS
Commitments for acquisition of Salterns Development as at the Balance Sheet date is as follows;
Group Company2011 2010 2011 2010
Rs. Rs. Rs. Rs.Authorised by the Board, but not contracted for 50,000,000 15,000,000 50,000,000 15,000,000
50,000,000 15,000,000 50,000,000 15,000,000
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
48 49
17. EARNINGS PER SHARE
17.1 Basic Earnings Per Share is calculated by dividing the profit for the year attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year. The weighted average number of ordinary shares outstanding during the year
and the previous year are adjusted for events, if any, that have changed the number of ordinary shares outstanding, without a
corresponding change in the resources such as a bonus issue.
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Interest Income 20,928,425 14,001 20,928,425 14,001
20,928,425 14,001 20,928,425 14,001
15. OTHER INCOME
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Interest Charges 7,435,597 6,323,978 7,390,147 6,309,463
Lease Interest Charges 1,783,700 1,140,030 1,783,700 1,140,030
9,219,297 7,464,008 9,173,847 7,449,493
16. FINANCE COST
17.2 The following reflects the income and share data used in the Basic Earnings Per Share computation.
Group Company
2011 2010 2011 2010
Amount Used as the Numerator: Rs. Rs. Rs. Rs.
Net Profit Attributable to Ordinary Shareholders for
Basic Earnings Per Share 57,865,492 51,256,027 65,026,802 53,188,775
2011 2010 2011 2010
Number of Ordinary Shares Used as Denominator: Number Number Number Number
Weighted Average Number of Ordinary Shares in
Issue Applicable to Basic Earning Per Share 282,207,320 282,207,320 282,207,320 282,207,320
Group Company 2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Included in Cost of Sales
Depreciation 13,297,844 10,275,112 12,907,914 10,275,112
Staff Costs includes 40,117,153 31,848,525 40,117,153 31,826,066
- Defined Benefit Plan Costs - Gratuity 531,045 - 531,045 (4,592)
- Defined Contribution Plan Costs - EPF & ETF 2,471,044 2,243,528 2,471,044 2,243,528
Depreciation 2,694,687 1,143,727 2,694,687 1,131,287
Research & Development Expenditure Written Off - 338,000 - -
Staff Costs includes 24,276,041 - 19,335,803 12,273,224
- Defined Benefit Plan Costs -Gratuity - (21,480) - (21,480)
- Defined Contribution Plan Costs - EPF & ETF 391,495 974,555 391,495 974,555
Other 1,503,551 - 1,503,551 -
IPO Expenses 2,098,011 6,612,172 2,098,011 6,612,172
Audit Fee & Expenses 190,600 143,750 160,000 118,000
Loss on Disposal of Property, Plant and Equipment 103,028 1,175,333 103,028 1,775,333
Included in Administrative Expenses
18. PROFIT FROM CONTINUING OPERATIONS
19. CASH AND CASH EQUIVALENTS IN CASH FLOW STATEMENT
19.1 FAVOURABLE CASH & CASH EQUIVALENT BALANCES
19.2 UNFAVOURABLE CASH & CASH EQUIVALENT BALANCES
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Cash & Bank Balances 5,741,719 1,130,918,151 5,673,078 1,130,838,150
Bank Overdrafts (10) (108,211,395) (27,593,131) (106,853,143) (27,406,317)
Total Cash and Cash Equivalents for the
Purpose of Cash Flow Statement (102,469,676) 1,103,325,020 (101,180,065) 1,103,431,833
20. COMMITMENTS AND CONTINGENCIES
20.1 CAPITAL EXPENDITURE COMMITMENTS
Commitments for acquisition of Salterns Development as at the Balance Sheet date is as follows;
Group Company2011 2010 2011 2010
Rs. Rs. Rs. Rs.Authorised by the Board, but not contracted for 50,000,000 15,000,000 50,000,000 15,000,000
50,000,000 15,000,000 50,000,000 15,000,000
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
48 49
22.2 TRANSACTION WITH THE SUBSIDIARY AND OTHER RELATED ENTITIES
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Balance as at 01 April 28,351,807 24,888,400 46,314,418 28,637,029
Fund Transfers 500,356 5,320,215 34,626,709 47,932,167
Loan Obtained - - - (28,397,970)
Purchase of Goods and Service (71,639,697) (67,962,826) (71,639,697) (67,962,826)
Settlement for Purchase of Goods and Service 73,232,908 66,106,018 73,232,908 66,106,018
Issue of shares - - (50,000,000) -
Balance as at 31 March 30,445,374 28,351,807 32,534,338 46,314,418
20.2 CONTINGENCIES
21. ASSETS PLEDGED - COMPANY/GROUP
The Group does not have significant contingencies as at the Balance Sheet date
The following assets have been pledged as security for liabilities.
Nature of the assets Pledged Obtained Assets Pledged Assets Pledged Under
2011 2010
Land at Palavi Loans and Overdraft Facility 187 Mn 187 Mn Property, Plant
Building at Palavi Loans and Overdraft Facility 34 Mn 39 Mn and Equipment
Machinery at Palavi Overdraft Facility 35 Mn 40
Fixed Deposit Overdraft Facility 150 Mn - Investment
Facility Carrying Value of the Included
22. RELATED PARTY DISCLOSURES
22.1 TRANSACTION WITH THE PARENT
Details of significant related party disclosures are as follows:
Group Company2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Balance as at 01 April 54,855,100 59,406,954 54,855,100 59,406,954
Fund Transfers (12,610,095) 18,637,501 (12,610,095) 18,637,501
Loan Obtained - (23,189,355) - (23,189,355)
Loan Repayment 23,189,355 - 23,189,355 -
Balance as at 31 March 65,434,360 54,855,100 65,434,360 54,855,100
22.3 TRANSACTIONS WITH ENTITIES THAT ARE CONTROLLED OR SIGNIFICANT INFLUENCED
` BY KEY MANAGEMENT PERSONNEL OR THEIR CLOSE MEMBERS OF FAMILY
22.4 KEY MANAGEMENT PERSONNEL COMPENSATIONS
23. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
a)
Sheet date, in respect of lease agreement no 012/L/2009/SBL/PET.
b) Joint and Several Guarantee for Rs.8,312,020 has been executed by Mr.N.B.W.C.Prashantha and Dr. R.Liyanage as at the Balance
Sheet date, in respect of lease agreement no 011/L/2009/SBL/PET.
c) Joint and Several Guarantee for Rs. 4,761,340 has been executed by Dr.R.Liyanage, Mr. K.R. Theodore, Mr. G.V.P.G. Amarasinghe,
Mrs. G.P. Maddumage, Mrs. M.U.N.Perera, Mrs. R.A.S.M. Dharmajeewa as at the Balance Sheet date, in respect of lease agreement
numbers 020, 021 and 022/L/2007/SBL/PET.
d) Joint and Several Guarantee has been executed by Mr.K.R.Theodore and G.V.P.G.Amarasinghe as at the Balance Sheet date, in
respect of bank loan of 20 Mn.
2011 2010
Rs. Rs.
Short Term Employee Benefits 2 ,100,000 -
There have been no material events occurring after the Balance Sheet date that require adjustments to or disclosure in the
Financial Statements.
Joint and Several Guarantee for Rs.9,499,452 has been executed by Mr.G.V.P.G.Amarasinghe and Dr. R.Liyanage as at the Balance
The above transactions are included in current liabilities as balance due to related parties and non interest bearing
borrowings and in current assets as balance due from related parties.
The above other related companies include following companies.
- Southern Salt Company (Pvt) Ltd
- Raigam Creations (Pvt) Ltd
- Raigam Distributors (Pvt) Ltd
- Raigam Herbal Remedies (Pvt) Ltd
- Raigam Eastern Salt Company (Pvt) Ltd
- Dream Life Science (Pvt) Ltd
- Puttalam Salt Limited
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
50 51
22.2 TRANSACTION WITH THE SUBSIDIARY AND OTHER RELATED ENTITIES
Group Company
2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Balance as at 01 April 28,351,807 24,888,400 46,314,418 28,637,029
Fund Transfers 500,356 5,320,215 34,626,709 47,932,167
Loan Obtained - - - (28,397,970)
Purchase of Goods and Service (71,639,697) (67,962,826) (71,639,697) (67,962,826)
Settlement for Purchase of Goods and Service 73,232,908 66,106,018 73,232,908 66,106,018
Issue of shares - - (50,000,000) -
Balance as at 31 March 30,445,374 28,351,807 32,534,338 46,314,418
20.2 CONTINGENCIES
21. ASSETS PLEDGED - COMPANY/GROUP
The Group does not have significant contingencies as at the Balance Sheet date
The following assets have been pledged as security for liabilities.
Nature of the assets Pledged Obtained Assets Pledged Assets Pledged Under
2011 2010
Land at Palavi Loans and Overdraft Facility 187 Mn 187 Mn Property, Plant
Building at Palavi Loans and Overdraft Facility 34 Mn 39 Mn and Equipment
Machinery at Palavi Overdraft Facility 35 Mn 40
Fixed Deposit Overdraft Facility 150 Mn - Investment
Facility Carrying Value of the Included
22. RELATED PARTY DISCLOSURES
22.1 TRANSACTION WITH THE PARENT
Details of significant related party disclosures are as follows:
Group Company2011 2010 2011 2010
Rs. Rs. Rs. Rs.
Balance as at 01 April 54,855,100 59,406,954 54,855,100 59,406,954
Fund Transfers (12,610,095) 18,637,501 (12,610,095) 18,637,501
Loan Obtained - (23,189,355) - (23,189,355)
Loan Repayment 23,189,355 - 23,189,355 -
Balance as at 31 March 65,434,360 54,855,100 65,434,360 54,855,100
22.3 TRANSACTIONS WITH ENTITIES THAT ARE CONTROLLED OR SIGNIFICANT INFLUENCED
` BY KEY MANAGEMENT PERSONNEL OR THEIR CLOSE MEMBERS OF FAMILY
22.4 KEY MANAGEMENT PERSONNEL COMPENSATIONS
23. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
a)
Sheet date, in respect of lease agreement no 012/L/2009/SBL/PET.
b) Joint and Several Guarantee for Rs.8,312,020 has been executed by Mr.N.B.W.C.Prashantha and Dr. R.Liyanage as at the Balance
Sheet date, in respect of lease agreement no 011/L/2009/SBL/PET.
c) Joint and Several Guarantee for Rs. 4,761,340 has been executed by Dr.R.Liyanage, Mr. K.R. Theodore, Mr. G.V.P.G. Amarasinghe,
Mrs. G.P. Maddumage, Mrs. M.U.N.Perera, Mrs. R.A.S.M. Dharmajeewa as at the Balance Sheet date, in respect of lease agreement
numbers 020, 021 and 022/L/2007/SBL/PET.
d) Joint and Several Guarantee has been executed by Mr.K.R.Theodore and G.V.P.G.Amarasinghe as at the Balance Sheet date, in
respect of bank loan of 20 Mn.
2011 2010
Rs. Rs.
Short Term Employee Benefits 2 ,100,000 -
There have been no material events occurring after the Balance Sheet date that require adjustments to or disclosure in the
Financial Statements.
Joint and Several Guarantee for Rs.9,499,452 has been executed by Mr.G.V.P.G.Amarasinghe and Dr. R.Liyanage as at the Balance
The above transactions are included in current liabilities as balance due to related parties and non interest bearing
borrowings and in current assets as balance due from related parties.
The above other related companies include following companies.
- Southern Salt Company (Pvt) Ltd
- Raigam Creations (Pvt) Ltd
- Raigam Distributors (Pvt) Ltd
- Raigam Herbal Remedies (Pvt) Ltd
- Raigam Eastern Salt Company (Pvt) Ltd
- Dream Life Science (Pvt) Ltd
- Puttalam Salt Limited
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2011
50 51
VALUE ADDED STATEMENT
2011 2010
% Rs % Rs
Gross Turnover 297,411,339 259,531,518
Cost of materials & services purchased (141,843,639) (116,896,078)
Other Income 20,928,425 14,001
Total Value Addition 176,496,125 142,649,441
To employees (as remuneration) 37 % 66,102,702 33% 46,968,768
To government 15 % 25,665,998 18% 26,190,630
To providers of capital 7 % 11,608,197 31% 43,676,905
Retained in the business 41 % 73,119,228 18% 25,813,138
100% 176,496,125 100% 142,649,441
Value Added per Employee 865,177 672,875
Value Addition as a % of Turnover 59% 55%
VALUE ADDITION
DISTRIBUTION OF VALUE ADDITION
No of % of No of
Shareholders Holding Shares
Less than or equal to 1000 1,221 0.28 % 795,540 - - -
1,001 - 10,000 2,442 4.00 % 11,286,360 - - -
10,001 - 100,000 415 4.88 % 13,767,300 - - -
100,001 - 1,000,000 70 6.47 % 18,248,200 - - -
Over 1,000,001 7 84.37 % 238,109,920 2 100% 202,207,320
Grand Total 4,155 100.00 % 282,207,320 2 100% 202,207,320
Resident 4,133 98.85 % 278,960,520 2 100% 202,207,320
Non - Resident 22 1.15 % 3,246,800 - - -
Total Share Holding 4155 100.00 % 282,207,320 2 100% 202,207,320
Individuals 4,048 13.19% 37,22,400 - - -
Institutions 107 86.81 % 244,984,920 2 100% 202,207,320
Total Shareholding 4,155 100.00 % 282,207,320 2 100% 202,207,320
31 March 2011 31 March 2010
DISTRIBUTION OF SHAREHOLDING
RESIDENT & NON - RESIDENT
INDIVIDUALS & INSTITUTIONS
COMPOSITION OF SHAREHOLDERS
INVESTOR INFORMATION
STOCK EXCHANGE
PUBLIC HOLDING & MAJOR SHARE HOLDINGS
STATED CAPITAL
MARKET VALUE PER SHARE
TRADING ACTIVITIES
INVESTOR RATIOS
EXCHANGE RATES US$
The issued Ordinary shares of Raigam Wayamba Salterns PLC
are listed with the Colombo Stock Exchange of Sri Lanka, since
29 April 2010. The Audited Financial Statements of the
company for the year ended 31 March 2011 have been
submitted to the Colombo Stock Exchange.
The details of shareholders as at 31 March 2011 are as
follows;
Stated Capital as at 31 March 2011 is represented by shares in
issue as given below;
31.03.2011 31.03.2010
Ordinary Shares (Numbers) 282,207,320 202,207,320
2010/11 2009/10
Highest Rs 5.10 -
Lowest Rs 3.70 -
As at the year end Rs 4.50 -
No. of Transactions No. of times 9,026 -
No. of Shares Traded Nos 75,816,600 -
Value of Shares Traded Rs. 331,735,810 -
2010/11 2009/10
Earnings per share Rs 0.21 0.18
Dividend per share Rs - 1.77
Price Earning Ratio No. of Times 21.43 -
Earnings Yield % 4.67 -
Net Assets per share Rs 2.34 2.14
Debt Equity Ratio % 22 169
Interest Cover No. of Times 7.96 7.87
2010/11 2009/10
At the year end 111.33 113.33
31.03.2011 31.03.2010
No. of Shares % No. of Shares %
Raigam Marketing Services (Pvt) Ltd 101,103,660 35.83% 101,103,660 50%
Raigam Distributors (Pvt) Ltd 101,103,660 35.83% 101,103,660 50%
Employees Provident Fund 29,864,300 10.58% -
Directors' Share Holding 658,100 0.23% -
Public Share Holding 49,477,600 17.53% -
52 53
VALUE ADDED STATEMENT
2011 2010
% Rs % Rs
Gross Turnover 297,411,339 259,531,518
Cost of materials & services purchased (141,843,639) (116,896,078)
Other Income 20,928,425 14,001
Total Value Addition 176,496,125 142,649,441
To employees (as remuneration) 37 % 66,102,702 33% 46,968,768
To government 15 % 25,665,998 18% 26,190,630
To providers of capital 7 % 11,608,197 31% 43,676,905
Retained in the business 41 % 73,119,228 18% 25,813,138
100% 176,496,125 100% 142,649,441
Value Added per Employee 865,177 672,875
Value Addition as a % of Turnover 59% 55%
VALUE ADDITION
DISTRIBUTION OF VALUE ADDITION
No of % of No of
Shareholders Holding Shares
Less than or equal to 1000 1,221 0.28 % 795,540 - - -
1,001 - 10,000 2,442 4.00 % 11,286,360 - - -
10,001 - 100,000 415 4.88 % 13,767,300 - - -
100,001 - 1,000,000 70 6.47 % 18,248,200 - - -
Over 1,000,001 7 84.37 % 238,109,920 2 100% 202,207,320
Grand Total 4,155 100.00 % 282,207,320 2 100% 202,207,320
Resident 4,133 98.85 % 278,960,520 2 100% 202,207,320
Non - Resident 22 1.15 % 3,246,800 - - -
Total Share Holding 4155 100.00 % 282,207,320 2 100% 202,207,320
Individuals 4,048 13.19% 37,22,400 - - -
Institutions 107 86.81 % 244,984,920 2 100% 202,207,320
Total Shareholding 4,155 100.00 % 282,207,320 2 100% 202,207,320
31 March 2011 31 March 2010
DISTRIBUTION OF SHAREHOLDING
RESIDENT & NON - RESIDENT
INDIVIDUALS & INSTITUTIONS
COMPOSITION OF SHAREHOLDERS
INVESTOR INFORMATION
STOCK EXCHANGE
PUBLIC HOLDING & MAJOR SHARE HOLDINGS
STATED CAPITAL
MARKET VALUE PER SHARE
TRADING ACTIVITIES
INVESTOR RATIOS
EXCHANGE RATES US$
The issued Ordinary shares of Raigam Wayamba Salterns PLC
are listed with the Colombo Stock Exchange of Sri Lanka, since
29 April 2010. The Audited Financial Statements of the
company for the year ended 31 March 2011 have been
submitted to the Colombo Stock Exchange.
The details of shareholders as at 31 March 2011 are as
follows;
Stated Capital as at 31 March 2011 is represented by shares in
issue as given below;
31.03.2011 31.03.2010
Ordinary Shares (Numbers) 282,207,320 202,207,320
2010/11 2009/10
Highest Rs 5.10 -
Lowest Rs 3.70 -
As at the year end Rs 4.50 -
No. of Transactions No. of times 9,026 -
No. of Shares Traded Nos 75,816,600 -
Value of Shares Traded Rs. 331,735,810 -
2010/11 2009/10
Earnings per share Rs 0.21 0.18
Dividend per share Rs - 1.77
Price Earning Ratio No. of Times 21.43 -
Earnings Yield % 4.67 -
Net Assets per share Rs 2.34 2.14
Debt Equity Ratio % 22 169
Interest Cover No. of Times 7.96 7.87
2010/11 2009/10
At the year end 111.33 113.33
31.03.2011 31.03.2010
No. of Shares % No. of Shares %
Raigam Marketing Services (Pvt) Ltd 101,103,660 35.83% 101,103,660 50%
Raigam Distributors (Pvt) Ltd 101,103,660 35.83% 101,103,660 50%
Employees Provident Fund 29,864,300 10.58% -
Directors' Share Holding 658,100 0.23% -
Public Share Holding 49,477,600 17.53% -
52 53
FIVE YEAR SUMMARY
YEAR ENDED 31 MARCH
OPERATING RESULTS 2011 2010 2009 2008 2007
Turnover Rs. 297,411,339 259,531,518 382,619,050 157,973,507 66,218,640
Gross Profit Rs. 136,002,558 115,952,873 203,298,171 45,471,772 11,957,509
Earning Before Interest & Taxation (EBIT) Rs. 73,381,090 58,720,035 180,689,019 28,860,711 3,859,974
Profit / (Loss) before Taxation Rs. 64,161,794 51,256,027 172,053,821 12,547,391 1,440,348
Profit / (Loss) after Taxation Rs. 57,865,492 51,256,027 172,053,821 12,547,391 1,440,348
Retained Profit / (Loss) Rs. 56,466,129 (1,399,363) 183,557,518 11,503,697 (1,043,694)
Stated Capital Rs. 604,414,640 604,414,640 204,414,629 15,000,020 20
Reserves Rs. 56,466,129 (1,399,363) 183,557,518 200,918,306 (1,043,694)
Total Equity Rs. 660,880,769 603,015,277 387,972,147 215,918,326 (1,043,674)
Total Debt Rs. 145,789,847 1,023,594,704 73,973,666 128,459,570 96,495,086
Total Capital Employed Rs. 806,670,616 1,626,609,981 461,945,813 344,377,896 95,451,412
Leasehold Property, Plant & Equipment Rs. 12,153,167 13,626,167 2,229,500 2,502,500 -
Property, Plant & Equipment Rs. 429,919,252 317,580,083 307,849,529 303,287,692 65,395,468
Other Non Current Assets Rs. 3,248,847 3,046,790 3,046,790 3,046,790 -
Total Current Assets Rs. 361,349,350 1,292,356,941 148,819,998 35,540,914 30,055,944
Equity / Asset Ratio No of Times 0.82 0.37 0.84 0.63 (0.01)
Current Ratio No of Times 2.62 1.28 2.34 0.31 0.39
Gearing Ratio % 22 169 19 59 -
Turnover to Capital Employed No of Times 0.37 0.16 0.83 0.46 0.69
Earnings Per Share Rs. 0.21 0.18 8.42 8.36 720,174
FINANCIAL POSITION
CAPITAL EMPLOYED
ASSETS EMPLOYED
KEY FINANCIAL INDICATORS
54 55
1. Raigam Marketing Services (Pvt) Ltd 101,103,660 35.83 % 101,103,660 50 %
2. Raigam Distributors (Pvt) Ltd 101,103,660 35.83 % 101,103,660 50 %
3. Employees Provident Fund 29,864300 10.58 % -
4. Indra Traders (Pvt) Ltd 1,711,900 0.61 % -
5. Mr. D. Kim 1,525,700 0.54 % -
6. Colombo Machinery & Equipment (Pvt) Ltd 1,523,600 0.54 % -
7. Seylan Bank PLC / Mr. Jayantha Dewage 1,277,100 0.45 % -
8. Pan Asia Banking Corporation PLC / Mr. Ravindra Erle 1,000,000 0.35 % -
9. J.B. Cocoshell (Pvt) Ltd 955,800 0.34 % -
10. Tranz Dominion, L.L.C. 950,000 0.34 % -
11. Mr. M.M. Udeshi 678,300 0.24 % -
12. Waldock Mackenzie Limited / Mr. L.P. Hapangama 615,600 0.22 % -
13. Mr. C. Wijeweere 530,100 0.19 % -
14. J.Y.K. Associates (Pvt) Ltd 502,200 0.18 % -
15. Mrs. S. Wajeeha Banu 500,000 0.18 % -
16. Bank of Ceylon No. 1 Account 500,000 0.18 % -
17. Waldock Mackenzie Limited / Mr. Chamila Damion Kohom 500,000 0.18 % -
18. Mr. R.E. Rambukwelle 476,100 0.17 % -
19. Mr. B.H.K. Perera 457,500 0.16 % -
20. Mr. N.S.K.W. Gunasekara 430,000 0.15 % -
Sub Total
Balance held by 4,135 shareholders 36,001,800 12.76 % - -
Total No. of shares 282,207,320 100 % 202,207,320 100%
246,205,520 87.24% 202,207,320 100%
Name of ShareholdersAs at 31 March 2011 As at 31 March 2010
TWENTY LARGEST SHAREHOLDERS
No. of Shares % No. of Shares %
FIVE YEAR SUMMARY
YEAR ENDED 31 MARCH
OPERATING RESULTS 2011 2010 2009 2008 2007
Turnover Rs. 297,411,339 259,531,518 382,619,050 157,973,507 66,218,640
Gross Profit Rs. 136,002,558 115,952,873 203,298,171 45,471,772 11,957,509
Earning Before Interest & Taxation (EBIT) Rs. 73,381,090 58,720,035 180,689,019 28,860,711 3,859,974
Profit / (Loss) before Taxation Rs. 64,161,794 51,256,027 172,053,821 12,547,391 1,440,348
Profit / (Loss) after Taxation Rs. 57,865,492 51,256,027 172,053,821 12,547,391 1,440,348
Retained Profit / (Loss) Rs. 56,466,129 (1,399,363) 183,557,518 11,503,697 (1,043,694)
Stated Capital Rs. 604,414,640 604,414,640 204,414,629 15,000,020 20
Reserves Rs. 56,466,129 (1,399,363) 183,557,518 200,918,306 (1,043,694)
Total Equity Rs. 660,880,769 603,015,277 387,972,147 215,918,326 (1,043,674)
Total Debt Rs. 145,789,847 1,023,594,704 73,973,666 128,459,570 96,495,086
Total Capital Employed Rs. 806,670,616 1,626,609,981 461,945,813 344,377,896 95,451,412
Leasehold Property, Plant & Equipment Rs. 12,153,167 13,626,167 2,229,500 2,502,500 -
Property, Plant & Equipment Rs. 429,919,252 317,580,083 307,849,529 303,287,692 65,395,468
Other Non Current Assets Rs. 3,248,847 3,046,790 3,046,790 3,046,790 -
Total Current Assets Rs. 361,349,350 1,292,356,941 148,819,998 35,540,914 30,055,944
Equity / Asset Ratio No of Times 0.82 0.37 0.84 0.63 (0.01)
Current Ratio No of Times 2.62 1.28 2.34 0.31 0.39
Gearing Ratio % 22 169 19 59 -
Turnover to Capital Employed No of Times 0.37 0.16 0.83 0.46 0.69
Earnings Per Share Rs. 0.21 0.18 8.42 8.36 720,174
FINANCIAL POSITION
CAPITAL EMPLOYED
ASSETS EMPLOYED
KEY FINANCIAL INDICATORS
54 55
1. Raigam Marketing Services (Pvt) Ltd 101,103,660 35.83 % 101,103,660 50 %
2. Raigam Distributors (Pvt) Ltd 101,103,660 35.83 % 101,103,660 50 %
3. Employees Provident Fund 29,864300 10.58 % -
4. Indra Traders (Pvt) Ltd 1,711,900 0.61 % -
5. Mr. D. Kim 1,525,700 0.54 % -
6. Colombo Machinery & Equipment (Pvt) Ltd 1,523,600 0.54 % -
7. Seylan Bank PLC / Mr. Jayantha Dewage 1,277,100 0.45 % -
8. Pan Asia Banking Corporation PLC / Mr. Ravindra Erle 1,000,000 0.35 % -
9. J.B. Cocoshell (Pvt) Ltd 955,800 0.34 % -
10. Tranz Dominion, L.L.C. 950,000 0.34 % -
11. Mr. M.M. Udeshi 678,300 0.24 % -
12. Waldock Mackenzie Limited / Mr. L.P. Hapangama 615,600 0.22 % -
13. Mr. C. Wijeweere 530,100 0.19 % -
14. J.Y.K. Associates (Pvt) Ltd 502,200 0.18 % -
15. Mrs. S. Wajeeha Banu 500,000 0.18 % -
16. Bank of Ceylon No. 1 Account 500,000 0.18 % -
17. Waldock Mackenzie Limited / Mr. Chamila Damion Kohom 500,000 0.18 % -
18. Mr. R.E. Rambukwelle 476,100 0.17 % -
19. Mr. B.H.K. Perera 457,500 0.16 % -
20. Mr. N.S.K.W. Gunasekara 430,000 0.15 % -
Sub Total
Balance held by 4,135 shareholders 36,001,800 12.76 % - -
Total No. of shares 282,207,320 100 % 202,207,320 100%
246,205,520 87.24% 202,207,320 100%
Name of ShareholdersAs at 31 March 2011 As at 31 March 2010
TWENTY LARGEST SHAREHOLDERS
No. of Shares % No. of Shares %
FORM OF PROXY
We…………………………………………………………………………………..............................………………………………………
of…………………………………………………………………………………………………………………............................………….
being a Member/s of Raigam Wayamba Salterns PLC do hereby appoint one of the following Directors of the Company,
Dr. Ravindranath Liyanage or failing him
Mr. G.V.P. Ganaka Amarasinghe or failing him
Prof. S.P.P. Amarathunga or failing him
Mr. T. Dharmarajah or failing him
Mr. W.A. Upali Gunawardena or failing him
Mr. N.B.W.C Prashantha or failing him
Mr. S.A. Wickramapala or failing him
Mr./Mrs……………………………………………………………………………………….........................………………………………..
of……………………………………………………………………………………………….........................………………………………
as *my / our Proxy to speak and / to vote for*me / us on *my / our behalf at the Sixth Annual General Meeting of Raigam
Wayamba Salterns PLC to be held at the Auditorium of The Institute of Chartered Accountants of Sri Lanka, No 30A, Malalasekara
Mawatha, Colombo 7 on Thursday the 15 September 2011 at 9.30 a.m and at any adjournment thereof.
For Against
1. To receive and consider the Report of the Directors
and Financial Statement of the Company and the
Group for the financial year ended 31 Mach 2011,
with the Auditors Report thereon.
2. To re-appoint Messrs Ernst & Young, Chartered
Accountants as Auditors for the ensuing year
and to authorize the Directors to determine their
remuneration.
3. To declare a dividend as recommended by the Directors.
4. To authorize the Directors to determine donations
for the financial year 2011 / 12.
* The Proxy may vote as he / she thinks fit on any other resolution brought before this meeting
………………...............……… ……….…………...................
Signature/s Date
Note:
1. Please delete the inappropriate words.
2. Instructions as to completion are noted on the next page.
NOTICE OF MEETING
AGENDA
NOTICE IS HERE BY GIVEN that the Sixth Annual General Meeting of Raigam Wayamba Salterns PLC will be held at the Auditorium of
The Institute of Chartered Accountants of Sri Lanka, No 30A, Malalasekara Mawatha, Colombo 7 on Thursday the 15 September 2011
at 9.30 a.m. for the following purposes:
1. To receive and consider the Report of the Directors and Audited Financial Statements of the Company and the Group for the
financial year ended 31 Mach 2011, with the Auditors' Report thereon.
2. To re-appoint Messrs Ernst & Young, Chartered Accountants as Auditors for the ensuing year and to authorize the Directors to
determine their remuneration.
3. To declare a dividend as recommended by the Directors.
4. To authorize the Directors to determine donations for the financial year 2011/2012.
By order of the Board
Raigam Wayamba Salterns PLC
U.K. Consultants (Pvt) Ltd
Secretaries
16 August, 2011
Note:
A member entitled to attend and vote is entitled to appoint a Proxy to attend and vote in his / her place.
A Proxy need not to be a member of the Company.
A Form of Proxy accompanies this Notice.
56 57
FORM OF PROXY
We…………………………………………………………………………………..............................………………………………………
of…………………………………………………………………………………………………………………............................………….
being a Member/s of Raigam Wayamba Salterns PLC do hereby appoint one of the following Directors of the Company,
Dr. Ravindranath Liyanage or failing him
Mr. G.V.P. Ganaka Amarasinghe or failing him
Prof. S.P.P. Amarathunga or failing him
Mr. T. Dharmarajah or failing him
Mr. W.A. Upali Gunawardena or failing him
Mr. N.B.W.C Prashantha or failing him
Mr. S.A. Wickramapala or failing him
Mr./Mrs……………………………………………………………………………………….........................………………………………..
of……………………………………………………………………………………………….........................………………………………
as *my / our Proxy to speak and / to vote for*me / us on *my / our behalf at the Sixth Annual General Meeting of Raigam
Wayamba Salterns PLC to be held at the Auditorium of The Institute of Chartered Accountants of Sri Lanka, No 30A, Malalasekara
Mawatha, Colombo 7 on Thursday the 15 September 2011 at 9.30 a.m and at any adjournment thereof.
For Against
1. To receive and consider the Report of the Directors
and Financial Statement of the Company and the
Group for the financial year ended 31 Mach 2011,
with the Auditors Report thereon.
2. To re-appoint Messrs Ernst & Young, Chartered
Accountants as Auditors for the ensuing year
and to authorize the Directors to determine their
remuneration.
3. To declare a dividend as recommended by the Directors.
4. To authorize the Directors to determine donations
for the financial year 2011 / 12.
* The Proxy may vote as he / she thinks fit on any other resolution brought before this meeting
………………...............……… ……….…………...................
Signature/s Date
Note:
1. Please delete the inappropriate words.
2. Instructions as to completion are noted on the next page.
NOTICE OF MEETING
AGENDA
NOTICE IS HERE BY GIVEN that the Sixth Annual General Meeting of Raigam Wayamba Salterns PLC will be held at the Auditorium of
The Institute of Chartered Accountants of Sri Lanka, No 30A, Malalasekara Mawatha, Colombo 7 on Thursday the 15 September 2011
at 9.30 a.m. for the following purposes:
1. To receive and consider the Report of the Directors and Audited Financial Statements of the Company and the Group for the
financial year ended 31 Mach 2011, with the Auditors' Report thereon.
2. To re-appoint Messrs Ernst & Young, Chartered Accountants as Auditors for the ensuing year and to authorize the Directors to
determine their remuneration.
3. To declare a dividend as recommended by the Directors.
4. To authorize the Directors to determine donations for the financial year 2011/2012.
By order of the Board
Raigam Wayamba Salterns PLC
U.K. Consultants (Pvt) Ltd
Secretaries
16 August, 2011
Note:
A member entitled to attend and vote is entitled to appoint a Proxy to attend and vote in his / her place.
A Proxy need not to be a member of the Company.
A Form of Proxy accompanies this Notice.
56 57
Notes
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
Form of Proxy (Cond..)Instructions as to completion of Form of Proxy
1. Kindly perfect the Form of Proxy after filling in legibly your full name and address and by signing in the space
provided. Please fill in the date of signature
2. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead
of him/her.
3. In the case of Corporate Members, the Form of Proxy must be completed under the Common Seal, which
should be affixed and attested in the manner prescribed by the articles of Associations / Statutes.
4. If the Form of Proxy is signed by an Attorney, the relevant Power of Attorney should also accompany the
completed Form of Proxy.
5. The completed Form of Proxy should be deposited at the Registered Office of the company at No. 23,
Walukarama Road, Colombo 03, not less than Forty Eight (48) hours before the time fixed for the meeting.
58 59
Notes
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
Form of Proxy (Cond..)Instructions as to completion of Form of Proxy
1. Kindly perfect the Form of Proxy after filling in legibly your full name and address and by signing in the space
provided. Please fill in the date of signature
2. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead
of him/her.
3. In the case of Corporate Members, the Form of Proxy must be completed under the Common Seal, which
should be affixed and attested in the manner prescribed by the articles of Associations / Statutes.
4. If the Form of Proxy is signed by an Attorney, the relevant Power of Attorney should also accompany the
completed Form of Proxy.
5. The completed Form of Proxy should be deposited at the Registered Office of the company at No. 23,
Walukarama Road, Colombo 03, not less than Forty Eight (48) hours before the time fixed for the meeting.
58 59
ANNUAL REPORT 2010/2011
FUTURE...