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Contents
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Name of the Company
Legal Form
Directors
Secretaries and Registers
Auditors
Bankers
Registered Office of the Company
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Chairmanʼs Review
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CEOʼs Review
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e-Channelling Performance Charts
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e-Channelling Performance Charts
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Mr. Suresh Bartlett
Chairman / Independent, Non-Executive Director
Mr. Chandima Hemachandra
Non-Independent, Non-Executive Director
Board of Directors
Mr. Ruwan Silva
Non-Independent, Non-Executive Director
Mr. Thanuja WeeratneNon-Independent, Non-Executive Director
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Board of Directors (Contd)
MR. P. Kudabalage
Non Independent, Non- Executive Director
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Report of the Directors on the Affairs of the Company
Review of the Year
Principal Activity
Auditorʼs Report
Financial Statements
Accounting Policies
Directorsʼ Interest
Directorsʼ Remuneration and Other Benefits
Corporate Donations
Directors and their Shareholdings
31.03.2010 31.03.2009
Auditors
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Report of the Directors on the Affairs of the Company (Contd)
Dividends
Investments
Intangible Assets
Property, Plant and Equipment
Capital Commitments
Stated Capital
Reserves
Events subsequent to the Balance Sheet date
Employment Policies
Taxation
Disclosure as per Colombo Stock Exchange Rule No.7.6
31.03.10 31.03.09
Shareholding
Major Shareholders
Statutory Payments
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Report of the Directors on the Affairs of the Company (Contd)
Environment, Health and Safety
Corporate Governance
Contingent Liabilities
Post Balance Sheet Events
Annual General Meeting
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Report of the Auditors
KPMG Ford, Rhodes, Thornton & Co, a Sri Lankan Partnership
and a member firm of the KPMG network of independent
member firms affiliated with KPMG International cooperative
(“KPMG International”), a Swiss entity .
A.N. Fernando FCA S. Sirikananathan FCA M.R. Mihular FCA
Ms. M.P. Perera FCA P.Y.S. Perera FCA C.P. Jayatil ake FCA
T.J.S. Rajakarier FCA W.W.J.C. Perera FCA Ms. S. Joseph ACA
Ms. S.M.B. Jayasekara ACA W.K.D.C. Abeyrathne ACA S.T.D.L. Perera ACA
INDEPENDENT AUDITORS’ REPORT
TO THE SHAREHOLDERS OF E-CHANNELLING PLC
Report on the Financial Statements
We have audited the accompanying financial statements of E-Channelling PLC(the “Company”), whichcomprise the balance sheet as at March 31, 2010, and the income statement, statement of changes in equityand cash flow statement 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 inaccordance with Sri Lanka Accounting Standards. This responsibility includes: designing, implementing
and maintaining internal control relevant to the preparation and fair presentation of financial statementsthat are free from material misstatement, whether due to fraud or error; selecting and applying appropriateaccounting 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 conductedour 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 materialmisstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accounting policies used and significant estimatesmade 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 werenecessary 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 recordsfor the year ended March 31, 2010 and the financial statements give a true and fair view of the Company’sstate of affairs as at March 31, 2010 and of its profit and cash flows for the year then ended in accordancewith Sri Lanka Accounting Standards.
Report on Other Legal and Regulatory Requirements
These financial statements also comply with the requirements of Section 151(2) of the Companies Act No.07 of 2007.However, it should be noted that the Company’s net assets are less than half of its statedcapital and the Board of Directors have resolved to address the situation as disclosed in note 27 to the
financial statements.
CHARTERED ACCOUNTANTS
Colombo
19th August 2010
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Balance Sheet
AS AT 31ST MARCH 2010 31.03.2010 31.03.2009
Note Rs. Rs.
ASSETS
5
6
7
8
9.1
Total Non Current Assets
10
9.2
Total Current Assets
Total Assets 94,391,956 87,102,220
EQUITY 11
Total Equity
LIABILITIES
12
Total Non Current Liabilities
14
13
15
16
Total Current Liabilities
Total Liabilities
Total Equity & Liabilities 94,391,956 87,102,220
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Income Statement
FOR THE YEAR ENDED 31ST MARCH 2010
Note 31.03.2010 31.03.2009
Rs. Rs.
Revenue 17
18
Loss from Operating Activities 19
20
21
Profit / (Loss) Before Taxation
22
Profit / (Loss) for the Year
Profit / (Loss) per share - Basic 23
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Statement of Changes in Equity
FOR THE YEAR ENDED 31ST MARCH 2010
Stated Retained Total
Capital Losses
Rs. Rs. Rs.
Balance as at 31st March 2010 187,516,633 (117,285,944) 70,230,689
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Cash Flow Statement
FOR THE YEAR ENDED 31ST MARCH 2010
31.03.2010 31.03.2009
Cash Flows From Operating Activities Rs. Rs.
Adjustments for
Cash Flows from/(used in) Investing Activities
Cash Flows from/(Used in) Financing Activities
(Note -A) 309,680 (4,550,198)
(Note -A) Cash & Cash Equivalents
309,680 (4,550,198)
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Notes to the Financial Statements
1 REPORTING ENTITY
2 BASIS OF PREPARATION
2.1 Statement of Compliance
2.2 Approval of Financial Statements by Directors
2.3 Basis of Measurement
2.4 Use of Estimates and Judgements
3 SIGNIFICANT ACCOUNTING POLICIES
3.1 Property, Plant and Equipment
(i) Recognition and Measurement
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Notes to the Financial Statements (Contd)
(ii) Subsequent Cost
(iii) Depreciation
(iv) Leased Assets
(v) Impairment of Assets
3.2 Intangible Assets
(i) Research and Development
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Notes to the Financial Statements (Contd)
(ii) License Fees
(iii) Subsequent Expenditure
(iv) Amortization
3.3 Investments
(i) Investments in treasury bonds
3.4 Trade and Other Receivables
3.5 Cash and Cash Equivalents
3.6 Employee Benefits
(i) Defined Contribution Plans Employeeʼs Provident Fund & Employees Trust Fund
(ii) Retirement Benefits Obligations – Gratuity
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Notes to the Financial Statements (Contd)
(iii) Liabilities and Provisions
3.7 Revenue Recognition
(i) Rendering of Services
(ii) Interest Income
3.8 Expenditure Recognition
(i) Borrowing Costs
(ii) Interest Costs
3.9 Income Tax Expense
(i) Current Taxes
(ii) Deferred Taxation
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Notes to the Financial Statements (Contd)
3.10 Cash Flow Statement
3.11 Commitments and Contingencies
3.12 Comparative Figures
3.13 Directors Responsibility Statement
3.14 Segment Reporting
4. NEW ACCOUNTING STANDARDS ISSUED BUT NOT EFFECTIVE AS AT BALANCE SHEET DATE
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Notes to the Financial Statements (Contd)
FOR THE YEAR ENDED 31ST MARCH 2010
5 Property, Plant and Equipment
Computer Computer Furniture and Office Motor Total
Equipment Servers Fittings Equipment Vehicles
Cost Rs. Rs. Rs. Rs. Rs. Rs.
Accumulated Depreciation
Carrying Amount
As at 31st March 2010 51,805 4,315,996 275,157 296,033 - 4,938,990
6 Leasehold Asset Laptop Total
Cost Rs. Rs.
Accumulated Depreciation
Carrying Amount
As at 31st March 2010
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Notes to the Financial Statements (Contd)
FOR THE YEAR ENDED 31ST MARCH 2010
7 Intangible Assets
License Fee Hospital Net 31.03.2010 31.03.2009
Cost Rs. Rs Rs. Rs.
Accumulated Amortization
Carrying Amount 8,680,986 9,817,997
31.03.2010 31.03.2009
Rs. Rs.
8 Employeesʼ Share Ownership Trust (ESOT Fund)
3,350,000 3,350,000
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Notes to the Financial Statements (Contd)
FOR THE YEAR ENDED 31ST MARCH 2010
31.03.2010 31.03.2009
Rs. Rs.
9 Investments
9.1 Long Term Investment
5,743,822 9,085,187
9.2 Short Term Investment
58,075,737 45,700,000
10 Trade & Other Receivables
10,925,380 10,406,177
11 Stated Capital
12 Retirement Benefit Obligations
1,894,679 1,329,432
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Notes to the Financial Statements (Contd)
FOR THE YEAR ENDED 31ST MARCH 2010
12 Retirement Benefit Obligations (Contd)
31.03.2010 31.03.2009
Rs. Rs.
13 Lease Creditors
- 189,126
14 Trade & Other Payables
19,255,058 9,136,565
15 Related Party Payables
31,174 -
16 Current Tax Payable
612,995 1,227,114
17 Revenue
50,524,306 38,484,507
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Notes to the Financial Statements (Contd)
FOR THE YEAR ENDED 31ST MARCH 2010
31.03.2010 31.03.2009
Rs. Rs.
18 Other Operating Income
1,663,064 601,092
19 The loss from operations was arrived after charging the following.
20 Financial Income
9,478,818 12,347,867
21 Financial Cost
9,417,778 12,272,910
22 Income Tax Expenses
2,336,769 2,771,239
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Notes to the Financial Statements (Contd)
FOR THE YEAR ENDED 31ST MARCH 2010
22 Income Tax Expenses (Contd)
31.03.2010 31.03.2009
Rs. Rs.
Reconciliation between the accounting loss and tax expenses
2,336,769 2,771,239
22.1Deferred Tax
44,845,075 44,807,201
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Notes to the Financial Statements (Contd)
FOR THE YEAR ENDED 31ST MARCH 2010
23 Profit/(Loss) Per Share - Basic
31.03.2010 31.03.2009
Rs. Rs.
24 Transactions with Related Parties
24.1Transactions with Related Entities
Company Name of Director Relationship Nature of Transactions
24.2 Transactions with Key Management Personnel
31.03.2010 31.03.2009
Rs. Rs.
25 Commitments & Contingencies
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Share Information
ANALYSIS OF SHAREHOLDERS ACCORDING TO THE NUMBER OF SHARES AS AT 31.03.2010
RESIDENT NON RESIDENT TOTAL
Shareholdings Number of No. of Shares Percentage (%) Number of No. of Shares Percentage (%) Number of No. of Shares Percentage (%)
Shareholders Shareholders Shareholders
Categories of Shareholders No. of Shareholders No. of Shares
LIST OF 20 MAJOR SHAREHOLDERS BASED ON THE SHAREHOLDINGS AS AT 31.03.2010
NAME SHAREHOLDINGS PERCENTAGE (%)
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Notice of Annual General Meeting
AGENDA
Note:
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Notes
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Form of Proxy
Note :
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Instructions to Completion of Form of Proxy
Note:
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