BE YOURSELF;
EVERYBODY ELSE IS
ALREADY TAKEN.
ANNUAL REPORT 2013/2014
BEING YOU.
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BEING INSPIRED.
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ODEL ANNUAL REPORT
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ODEL ANNUAL REPORT
05
CEO’S LETTER
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FINANCIAL HIGHLIGHTS
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27$5$*81(:$5'(1(
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REVENUE RS MN
TOTAL ASSETS RS MN
TOTAL EQUITY RS MN
NET PROFIT RS MN
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
09
BOARD OF DIRECTORS
10
ODEL ANNUAL REPORT
RUCHI GUNEWARDENE
CHAIRMAN
OTARA GUNEWARDENE
EXECUTIVE DIRECTOR/CEO
SANJAY KULATUNGA
NON-EXECUTIVE INDEPENDENT
DIRECTOR
Mr. Gunewardene is the Managing
Director of STING Consultants and
Brand Finance Lanka, Sri Lanka’s only
ĨƵůůLJͲŝŶƚĞŐƌĂƚĞĚƐƚƌĂƚĞŐŝĐŵĂƌŬĞƟŶŐ
ĂŶĚďƌĂŶĚĐŽŶƐƵůƟŶŐĮƌŵƐ͘,ĞĐŽƵŶƚƐ
ŽǀĞƌƚǁŽĚĞĐĂĚĞƐŽĨŵƵůƟŶĂƟŽŶĂů
experience as the former Country
Manager/CEO of Coca-Cola Sri Lanka,
ZĞŐŝŽŶĂůDĂƌŬĞƟŶŐDĂŶĂŐĞƌĨŽƌ
ƚŚĞŽĐĂͲŽůĂŽŵƉĂŶLJĂŶĚ,ĞĂĚ
ŽĨDĂƌŬĞƟŶŐŽĨ'ůĂdžŽ^ŵŝƚŚ<ůŝŶĞ
Consumer, Sri Lanka. Prior to this, he
ǁĂƐĞŵƉůŽLJĞĚďLJŵƵůƟŶĂƟŽŶĂůƐZĞĐŬŝƩ
Benckiser and JWT in their Sri Lankan
ŽƉĞƌĂƟŽŶƐ͘Dƌ͘'ƵŶĞǁĂƌĚĞŶĞŚŽůĚƐĂ
ĂĐŚĞůŽƌŽĨ^ĐŝĞŶĐĞ͕,ŽŶŽƵƌƐĞŐƌĞĞŝŶ
Applied Biology from the University
ŽĨĂƚŚ͕h<͘
Otara is the founder of Odel and
ŚĂƐƐĞƌǀĞĚĂƐKƐŝŶĐĞŝŶĐĞƉƟŽŶ͘
graduate in Biology from The Bowling
Green State University, Ohio, Otara’s
entry into the fashion retail business
followed a chance request by an apparel
manufacturer to help him dispose of an
assortment of export surplus garments,
which she sold from the boot of her
car. From being a sole proprietor of one
store in 1990, she pioneered a fashion
retailing phenomenon and has piloted
Odel through two decades of explosive
growth and expansion.
^ĂŶũĂLJ<ƵůĂƚƵŶŐĂŚĂƐĞdžƉĞƌŝĞŶĐĞĂƐĂ
ĨŽƵŶĚĞƌĂŶĚĂŶdžĞĐƵƟǀĞŝƌĞĐƚŽƌŝŶĂ
diverse array of industries ranging from
Finance, Export manufacturing and
/ŵƉŽƌƚƐƵďƐƟƚƵƟŽŶ͘,ĞŚŽůĚƐĂƐĞƌŝĞƐŽĨ
ŶŽŶͲdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐŚŝƉƐŝŶůŝƐƚĞĚĂƐ
well as unlisted companies.
KƚĂƌĂŚĂƐƚŚĞĚŝƐƟŶĐƟŽŶŽĨďĞŝŶŐƚŚĞ
ĮƌƐƚĨĞŵĂůĞĞŶƚƌĞƉƌĞŶĞƵƌƚŽƚĂŬĞĂ
company public in Sri Lanka, when Odel
launched an IPO in July 2010. Following
the entry of Parkson Retail Asia 2012,
Otara retains a 29.7 per cent stake of
KĚĞůW>͘,ĞƌĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉǁĂƐ
globally recognised in 2010 when
she was named the best female
entrepreneur at the seventh US Stevie
Awards for Women in Business.
,ĞĂůƐŽƐĞƌǀĞƐŽŶƚŚĞ&ŝŶĂŶĐŝĂů^ĞĐƚŽƌ
^ƚĂďŝůŝƚLJŽŶƐƵůƚĂƟǀĞŽŵŵŝƩĞĞŽĨƚŚĞ
Central Bank of Sri Lanka.
^ĂŶũĂLJ<ƵůĂƚƵŶŐĂŚĂƐĂDĨƌŽŵƚŚĞ
University of Chicago ‘Booth School of
ƵƐŝŶĞƐƐ͛͘,ĞŝƐĂŶƐƐŽĐŝĂƚĞŵĞŵďĞƌŽĨ
ƚŚĞŚĂƌƚĞƌĞĚ/ŶƐƟƚƵƚĞŽĨDĂŶĂŐĞŵĞŶƚ
Accountants (ACMA) as well as a
Chartered Financial Analyst (CFA).
ODEL ANNUAL REPORT
11
BOARD OF DIRECTORS
DATUK LEE KOK LEONG
NON-EXECUTIVE NON-INDEPENDENT
DIRECTOR
ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐŚĂƐďĞĞŶƐĞƌǀŝŶŐ
as Personal Assistant to Tan Sri William
Cheng, Group Chairman of the Lion
Group of Companies since 2010 and
assists the Chairman in the retail,
branding and property divisions in
the Group.
EARDLEY PERERA
NON-EXECUTIVE INDEPENDENT
DIRECTOR
PAUL TOPPING
NON-EXECUTIVE INDEPENDENT
DIRECTOR
Eardley Perera is a Chartered Marketer
ĂŶĚ'ƌĂĚƵĂƚĞŽĨƚŚĞŚĂƌƚĞƌĞĚ/ŶƐƟƚƵƚĞ
ŽĨDĂƌŬĞƟŶŐ͕h<ǁŝƚŚĂŵĞŵďĞƌƐŚŝƉ
ƐƉĂŶŶŝŶŐŽǀĞƌĨŽƌƚLJLJĞĂƌƐ͘,ĞŚĂƐŚĂĚ
extensive management training in
^ǁĞĚĞŶ͕EĞƚŚĞƌůĂŶĚƐ͕ƚŚĞh<͕/ŶĚŝĂ͕
^ŽƵƚŚ<ŽƌĞĂ͕ƚŚĞWŚŝůŝƉƉŝŶĞƐ
and Singapore.
Paul Topping counts over three
ĚĞĐĂĚĞƐŽĨŝŶƚĞƌŶĂƟŽŶĂůĞdžƉĞƌŝĞŶĐĞ
in both fashion and travel retailing in
the European, American and Asian
ĐŽŶƟŶĞŶƚƐ͘,ĞƐĞƌǀĞĚĂƐůƉŚĂ͛Ɛ
Retail Managing Director and then
headed their Asian business. Alpha
was a member of the Italian Autogrill
Group, the world’s leading provider
of food & beverage and retail services
for travellers. Prior to this, he held the
ƉŽƐŝƟŽŶŽĨ'ƌŽƵƉDŽĨƚŚĞZĞƚĂŝů
Division of Trusthouse Forte Airport
ŝǀŝƐŝŽŶ͕h<͘,ĞĂůƐŽŚĞůĚƐĞŶŝŽƌƌŽůĞƐ
Ăƚh<ĐůŽƚŚŝŶŐƌĞƚĂŝůĞƌƐ,^ĂŶĚ
ǁ,ŽƌŶĞƐDĞŶƐǁĞĂƌ͘
,ŝƐŵĂŶĂŐĞŵĞŶƚĞdžƉĞƌŝĞŶĐĞ͕ƐƉĂŶŶŝŶŐ
over four decades, include Sales and
DĂƌŬĞƟŶŐ͕ŽŵŵĞƌĐŝĂůĂŶĚ'ĞŶĞƌĂů
DĂŶĂŐĞŵĞŶƚĨƵŶĐƟŽŶƐ͘,ĞŶŽǁƐĞƌǀĞƐ
ĂƐĂEŽŶͲdžĞĐƵƟǀĞŝƌĞĐƚŽƌŽĨƐĞǀĞƌĂů
Public and Private Companies.
,ĞŝƐĂĐƟǀĞůLJĞŶŐĂŐĞĚŝŶŵĂŶĂŐĞŵĞŶƚ
consultancy and extensive teaching
experience as a lecturer on the CIM
;h<ͿWŽƐƚŐƌĂĚƵĂƚĞŽƵƌƐĞŝŶDĂƌŬĞƟŶŐ
and on the MBA programme of the
WŽƐƚŐƌĂĚƵĂƚĞ/ŶƐƟƚƵƚĞŽĨDĂŶĂŐĞŵĞŶƚ
(PIM) of the University of Sri
Jayewardenepura, where he now serves
as a member of the Board of Study.
,ĞǁĂƐǀŽƚĞĚ:ŽŝŶƚdƌĂǀĞůZĞƚĂŝůĞƌŽĨ
ϮϬϬϱĂŶĚǁŽŶƚŚĞĂŶŶĞƐ&ƌŽŶƟĞƌ
ĂǁĂƌĚŽŶƚǁŽŽĐĐĂƐŝŽŶƐ͘,ĞŶŽǁƐŝƚƐ
on the board of a number of companies
including travel retailer Flemingo Duty
Free Int., and Bangalore Soma Winery.
,ĞŚĂƐŚŝƐŽǁŶƌĞƚĂŝůĐŽŶƐƵůƚĂŶĐLJ͕
Tractopping and develops/ writes on
wine as The Wineman
of Sri Lanka.
Datuk Lee has accumulated vast
ĞdžƉĞƌŝĞŶĐĞĂŶĚŝŶƟŵĂƚĞŬŶŽǁůĞĚŐĞŽĨ
the retail and branding industry with
ŽǀĞƌϭϱLJĞĂƌƐŝŶƚŚŝƐďƵƐŝŶĞƐƐ͘,ĞŚĂƐ
worked in Padini, the largest branded
clothing and accessories company in
Malaysia, which is currently achieving a
turnover of approximately over RM700
million per annum.
dŚŝƐǁĂƐĨŽůůŽǁĞĚďLJŚŝƐƐƟŶƚŝŶŬƟĨ
Lifestyle store (formerly Yoahan) as
store manager before the company was
ĂĐƋƵŝƌĞĚďLJWĂƌŬƐŽŶŽƌƉŽƌĂƟŽŶ͘ƵƌŝŶŐ
ŚŝƐƐĞƌǀŝĐĞŝŶŬƟĨĂŶĚWĂƌŬƐŽŶ͕ŚĞǁĂƐ
assigned to supervise various Parkson
stores throughout Malaysia, handling
ƚŚĞĚĂLJƚŽĚĂLJŽƉĞƌĂƟŽŶƐŝŶĐůƵĚŝŶŐƚŚĞ
ďĞƐƚƉĞƌĨŽƌŵŝŶŐWĂƌŬƐŽŶ^ƵƌŝĂ<>
store with RM100 million annual
sales turnovers.
Apart from handling the retail
ŽƉĞƌĂƟŽŶƐ͕ŚĞǁĂƐĂůƐŽŝŶǀŽůǀĞĚŝŶ
ƚŚĞŵĞƌĐŚĂŶĚŝƐŝŶŐĨƵŶĐƟŽŶƵƉŽŶŚŝƐ
ƉƌŽŵŽƟŽŶƚŽƚŚĞƌĂŶŬŽĨĚŝǀŝƐŝŽŶĂů
merchandising manager in Parkson
Malaysia. For the past 3 years, he
ŚĂƐďĞĞŶǀŝƐŝƟŶŐĂŶĚƐƚƵĚLJŝŶŐƚŚĞ
WĂƌŬƐŽŶƐƚŽƌĞƐŽƉĞƌĂƟŽŶƐŝŶƚŚĞǀĂƌŝŽƵƐ
countries Parkson is in, to assist the
Group Chairman in overseeing the retail
ĂŶĚďƌĂŶĚŝŶŐďƵƐŝŶĞƐƐĂŶĚŝĚĞŶƟĨLJŝŶŐ
ďƵƐŝŶĞƐƐŽƉƉŽƌƚƵŶŝƟĞƐ͘
Datuk Lee graduated in 1998 from the
hŶŝǀĞƌƐŝƚLJŽĨ<ĞŶƚƵĐŬLJ͕h^ǁŝƚŚĂ
ĂĐŚĞůŽƌŽĨ^ĐŝĞŶĐĞŝŶDĂƚŚĞŵĂƟĐƐĂŶĚ
minor in Economics.
HAMID GHAZALI HUSSAIN
NON-EXECUTIVE INDEPENDENT
DIRECTOR
ALTERNATE DIRECTOR TO
PAUL TOPPING
WONG SIEW CHUAN
NON-EXECUTIVE NON-INDEPENDENT
DIRECTOR
TIANG CHEE SUNG
NON-EXECUTIVE NON-INDEPENDENT
DIRECTOR
,ĂŵŝĚ'ŚĂnjĂůŝ,ƵƐƐĂŝŶŝƐĂŶƩŽƌŶĞLJͲĂƚͲ
Law, former State Counsel and former
>ĞŐĂůŽŶƐƵůƚĂŶƚƚŽhE,Z,ŽŶŐ<ŽŶŐ͘
,ĞǁĂƐĂůƐŽĨŽƌŵĞƌĞƉƵƚLJŚĂŝƌŵĂŶŽĨ
Wakf Board.
Wong Siew Chuan joined Parkson
in 1995 and expanded her role to
Assistant General Manager in 2013.
,ĞƌĐƵƌƌĞŶƚƉŽƌƞŽůŝŽŝŶWĂƌŬƐŽŶ
Malaysia includes Ladies Apparel and
Ladies Accessories with a turnover
of approximately RM420 Million
(approximately USD130 Million).
Tiang Chee Sung currently holds the
ƉŽƐŝƟŽŶŽĨƐƐŝƐƚĂŶƚ'ĞŶĞƌĂůDĂŶĂŐĞƌ
;KƉĞƌĂƟŽŶƐͿŝŶWĂƌŬƐŽŶƐŝŶĐĞϮϬϬϵ͘Dƌ
Tiang graduated from the University
of Windsor, Ontario, Canada with a
ĂĐŚĞůŽƌŽĨŽŵŵĞƌĐĞŝŶϭϵϴϯ͘,Ğ
ũŽŝŶĞĚŵƉŽƌŝƵŵ,ŽůĚŝŶŐƐŝŶϭϵϴϯĂƐĂ
Management Trainee and was promoted
to Assistant Store Manager in 1986.
,ĞŝƐƉƌĞƐĞŶƚůLJĂŵĞŵďĞƌŽĨƚŚĞ
Advisory Council on the Intellectual
Property Board.
She has 24 years of retail experience in
the fashion industry including all areas
of Merchandising, Brand Management,
Sourcing, Product Development and
KƉĞƌĂƟŽŶƐ͘
/ŶĂĚĚŝƟŽŶ͕ƐŚĞŚĂƐϱLJĞĂƌƐŽĨŽǀĞƌƐĞĂƐ
experience as a Regional
KƉĞƌĂƟŽŶƐDĂŶĂŐĞƌŝŶĂŶĞƐƚĂďůŝƐŚĞĚ
fashion retail company, Women’s
Specialty Retailing Group, in both
San Francisco and Los Angeles. She
graduated in 1989 from The University
of Central Missouri, the United States
of America with a Bachelor of Arts in
DĂƐƐŽŵŵƵŶŝĐĂƟŽŶƐĂŶĚŵŝŶŽƌ
ŝŶDĂƌŬĞƟŶŐ͘
In 1987, he joined Parkson as an
Assistant Store Manager and was
promoted to Store Manager in 1988.
,ĞǁĂƐƉŽƐƚĞĚƚŽǀĂƌŝŽƵƐƐƚŽƌĞƐŝŶ
various states before being based at
ƚŚĞ,ĞĂĚKĸĐĞĂƐKƉĞƌĂƟŽŶƐDĂŶĂŐĞƌ
overseeing 18 stores in 2002 to 39
stores presently.
,ĞŝƐĂůƐŽŝŶǀŽůǀĞĚŝŶŝĚĞŶƟĨLJŝŶŐŶĞǁ
ƉŽƚĞŶƟĂůƐŝƚĞƐĂŶĚƉŽƚĞŶƟĂůĐĂŶĚŝĚĂƚĞƐ
ĨŽƌŵĂŶĂŐĞƌŝĂůƉŽƐŝƟŽŶƐ͘
In March 2013, Mr Tiang arrived at Odel
Sri Lanka as Assistant General Manager
;KƉĞƌĂƟŽŶƐͿƚŽŚĞĂĚZĞƚĂŝůKƉĞƌĂƟŽŶƐ
ƵŶƟůDĂLJϮϬϭϰďĞĨŽƌĞƌĞƚƵƌŶŝŶŐƚŽ
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ĐƵƌƌĞŶƚƉŽƐŝƟŽŶ͘
Mr. Datuk Cheng Yoong Choong resigned on 31st May 2014.
Dƌ͘,ŝĂEŐĞĞzĞŽǁĐĞĂƐĞĚƚŽďĞŚŝƐĂůƚĞƌŶĂƚĞĨƌŽŵϯϭƐƚDĂLJϮϬϭϰ͘
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SENIOR MANAGEMENT
FOO HAW LI
GENERAL MANAGERINFORMATION TECHNOLOGY
NALAKA RAMBUKPOTA
GENERAL MANAGER- CORPORATE OPERATIONS
14
ODEL ANNUAL REPORT
GOPIKA MAGESWARAN
HEAD OF BUSINESS REPORTING
ASHANI GOPALLAWA
HEAD OF BUSINESS OPERATIONS
OPERA
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GENERAL MANAGERVISUAL MERCHANDISING
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HEAD OF DIVISIONAL MERCHANDISING
ROSHAN GURUSINGHE
GENERAL MANAGER- CORPORATE PLANNING AND
BUSINESS DEVELOPMENT- SPECIAL PROJECTS
ODEL ANNUAL REPORT
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MILESTONES 2013-14
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Embark Concept Store Launch November 2013
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Hope Begins When Caring Takes Over March 2014
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Christmas with Niko December 2013
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ODEL ANNUAL REPORT
37
SUSTAINABILITY
GIVING BACK
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World Animal Day 2013
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CSR INITIATIVES
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Education for Storm Victims’ Children
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Restoring Sight to the Elderly
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OUR COMMUNITY
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Individual Odel stores contributed to several CSR
initiatives throughout the year.
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refurbish the children’s ward at Thalangama Hospital.
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fans. In addition a bookshelf with books was donated
by the staff.
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in construction and development work at St. Mary’s
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repairs and improvements to doors and windows in
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gift of vases for use in the school’s worship area.
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funds to refurbish the Loris Lama Niwasaya
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of all forty beds at the orphanage and the kitchen
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of the bathroom roof.
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Panadura undertook renovations and improvements
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the donation of a 16-speaker public-address system for
the school hall and classrooms.
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murals and the donation of a photocopier to the
school administration.
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together to support construction work at Bopitiya
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the inmates.
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38
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
39
INTERNAL OPERATIONS
LOOKING FORWARD
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40
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
41
FINANCIAL
STATEMENTS
42
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
43
FINANCIAL REVIEW
Sri Lanka GDP grew by 7.3 % in 2013 compared to a growth of
6.3% in 2012. The per capita GDP reached USD 3,280 from USD
2,922 year ago. The tourist arrivals reached 1.27 million in 2013
a growth of 26.7 % from the preceding year with earnings from
tourism recording 1.715 billion USD. The average spending per
tourist per day increased to USD 156.5 from USD 103 in 2012.
These developments in the macro environment had a salutary
ĞīĞĐƚŽŶƚŚĞƚŽƉůŝŶĞŽĨKĚĞů͘
REVENUE
The revenue reached Rs 4.6bn which is a growth of 1.4% from
previous year. A full year impact on the top line from VAT was
ĨĞůƚĨŽƌƚŚĞĮƌƐƚƟŵĞƚŚŝƐLJĞĂƌ͘tŝƚŚŽŶůLJĂĨĞǁŝƚĞŵƐďĞŝŶŐ
exempt from it, VAT at 12% rate on the topline had a major
impact on the revenue growth which required re assessment
of the prices and margins in a hitherto unfamiliar context.
dŚĞĚĞĐĞůĞƌĂƟŽŶŽĨƚŚĞƌĞǀĞŶƵĞŐƌŽǁƚŚǁĂƐŽďƐĞƌǀĞĚ
from last quarter of the previous year when VAT came into
ĞīĞĐƚĂŶĚǁŽƵůĚďĞŽǀĞƌĐŽŵĞǁŝƚŚƚŚĞƉĂƐƐĂŐĞƚŚĞŽĨƟŵĞ
especially with the broadening of the tax base through the
last budget proposals which reduced the threshold to Rs 250
million per quarter.
REVENUE AND MARGIN
NET FINANCE COST
COMPREHENSIVE INCOME
During 2013 the interest rate scenario changed with lending
rates declining considerably. The 364 day Treasury Bill rate
dropped from 11.69% to 8.29% at the end of the calendar year
and Average Weighted Prime Rate too declined similarly from
ϭϰ͘ϰйƚŽϭϬ͘ϭϯй͘dŚĞƐĞƐŝŐŶŝĮĐĂŶƚƌĞĚƵĐƟŽŶƐǁĞƌĞŝŶƌĞƐƉŽŶƐĞ
to policy decisions and due to excess liquidity available in the
ŵĂƌŬĞƚ͘dŚĞĮŶĂŶĐĞĐŽƐƚƐƌĞĐŽƌĚĞĚĂϮϱйĚƌŽƉĂƐĂƌĞƐƵůƚŽĨ
ƚŚĞĨĂǀŽƵƌĂďůĞĐŽŶĚŝƟŽŶƐĚĞƐƉŝƚĞƚŚĞŽǀĞƌĂůůďŽƌƌŽǁŝŶŐůĞǀĞůƐ
ďĞŝŶŐƐŝŐŶŝĮĐĂŶƚůLJŚŝŐŚĞƌƚŚĂŶƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͘
dŚĞƉƌŽĮƚĂŌĞƌƚĂdžĨŽƌƚŚĞLJĞĂƌĂƚZƐϭϵϮŵŶŝƐĂŶŝŶĐƌĞĂƐĞŽĨ
ϮϮйĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐĮŶĂŶĐŝĂůLJĞĂƌ͘dŚĞŝŶĐƌĞĂƐĞĚĐŽƐƚŽĨ
ŽƉĞƌĂƟŽŶĂŶĚŐƌŽƐƐŵĂƌŐŝŶƌĞĚƵĐƟŽŶĚƵĞƚŽsdǁĂƐŽīƐĞƚ
by the income earned from investments which resulted in the
ďŽƩŽŵůŝŶĞŝŵƉƌŽǀĞŵĞŶƚ͘
INTEREST COSTS AND BORROWINGS (Rs Mn)
1400
180
1200
1000
5000
4500
2500
37%
2000
1500
37%
1000
36%
500
0
36%
2011
Revenue Rs mn
2012
2013
45.00
30.00
60
25.00
40
20.00
20
15.00
0
10.00
0
38%
140
80
2012
2013
2014
The rights issue of shares in December 2012 infused Rs 2.5 bn
of fresh capital to Odel. These funds were raised to expand
ƚŚĞƌĞƚĂŝůƐƉĂĐĞĂŶĚƚŽƐĞƩůĞƉĂƌƚŽĨƚŚĞďŽƌƌŽǁŝŶŐƐ͘ŌĞƌ
ƐĞƩůŝŶŐƐŚŽƌƚƚĞƌŵďŽƌƌŽǁŝŶŐƐĂƩƌĂĐƟŶŐŚŝŐŚĞƌŝŶƚĞƌĞƐƚƌĂƚĞƐ
ĂŵĂũŽƌƉŽƌƟŽŶŝƐƐƟůůŝŶǀĞƐƚĞĚŝŶƐŚŽƌƚƚĞƌŵŝŶǀĞƐƚŵĞŶƚƐƵŶƟů
drawdown for expansion become necessary.
The income earned from short term investments boosted the
ƌĞƐƵůƚƐŽĨƚŚĞĐŽŵƉĂŶLJƐŝŐŶŝĮĐĂŶƚůLJĚƵƌŝŶŐƚŚĞLJĞĂƌĂŶĚŚĞůƉĞĚ
ƚŽĐƵƐŚŝŽŶƚŚĞĞīĞĐƚsdŚĂĚŽŶƚŚĞƌĞƐƵůƚ͘
2014
Margin %
GROSS MARGIN
The rates of interest have steadily declined into the new
ĮŶĂŶĐŝĂůLJĞĂƌĂŶĚƚŚŝƐƚƌĞŶĚŝƐĞdžƉĞĐƚĞĚƚŽĐŽŶƟŶƵĞŝŶƚŚĞ
short term.
Gross margin was impacted over the last two years by the
ĞīĞĐƚŽĨsdďĞŝŶŐŝŵƉŽƐĞĚŽŶƌĞƚĂŝůƐĂůĞƐ͘dŚĞŽǀĞƌĂůů'ƌŽƐƐ
WƌŽĮƚŵĂƌŐŝŶƌĞŵĂŝŶĞĚŇĂƚĂƚϯϴ͘ϯйŽǀĞƌƚŚĞƉĂƐƚƚǁŽLJĞĂƌƐ
as a result.
MOVEMENT OF AWPLR AND INFLATION (%)
OVERHEADS
14
ŝƐƚƌŝďƵƟŽŶĞdžƉĞŶƐĞƐǁĞƌĞĐŽŶƐŝƐƚĞŶƚǁŝƚŚƌĞǀĞŶƵĞŐƌŽǁƚŚĂƐ
these consist mainly of the payments linked to the topline.
12
dŚĞŝŶŇĂƟŽŶƌĂƚĞŝŶĚŝĐĂƚĞĚďLJW/ĂŶŶƵĂůĂǀĞƌĂŐĞĐŚĂŶŐĞǁĂƐ
6.9%in 2013 down from 7.6% in 2012. The main components of
ŽǀĞƌŚĞĂĚĐŽƐƚƐĂƌĞƐƚĂīĐŽƐƚƐ͕ƌĞŶƚĂŶĚĞůĞĐƚƌŝĐŝƚLJ͘dŚĞŽƉĞŶŝŶŐ
of 3 new outlets contributed to the increase in these costs.
KǀĞƌĂůůĂĚŵŝŶŝƐƚƌĂƟŽŶĐŽƐƚƐŝŶĐƌĞĂƐĞĚďLJϭϱйŝŶϮϬϭϯͬϭϰĂŶĚ
ŵĂŶLJŝŶŝƟĂƟǀĞƐŚĂǀĞďĞĞŶƚĂŬĞŶƚŽĐŽŶƚƌŽůƚŚĞĐŽƐƚƐŽŶĂŶ
ongoing basis.
1.60
1.40
8%
6%
2,000
4%
2%
0%
2011
Equity
1.20
1.00
0.60
0.40
0.20
5.00
Finance cost
10%
1,000
0.80
Borrowings
38%
3000
MOVEMENT IN MARKET PRICE,NET ASSETS AND
EARNINGS PER SHARE (Rs)
600
2011
3500
160
35.00
39%
12%
3,000
100
4000
5,000
The EPS reduced from cents 88 to cents 71 in 2013/14. The
increased number of shares in issue (post rights issue) was the
ƌĞĂƐŽŶĨŽƌƚŚŝƐĚĞƐƉŝƚĞƚŚĞĂŌĞƌƚĂdžƉƌŽĮƚďĞŝŶŐŚŝŐŚĞƌƚŚĂŶŝŶ
2012/13.
40.00
200
14%
4,000
120
39%
6,000
EARNINGS PER SHARE
800
400
EQUITY BASE AND RETURN ON EQUITY
-
2011
Share Price
2012
Net Assets
2013
2014
2012
2013
2014
Return on equity
NON CURRENT ASSETS
Rs 433 mn was invested in acquiring property plant and
equipment during the year. This includes purchase cost of land
ƐŝƚƵĂƚĞĚĂĚũĂĐĞŶƚƚŽĐƵƌƌĞŶƚůLJŚĞůĚƉƌŽƉĞƌƟĞƐĂƚtĂƌĚWůĂĐĞ
ĂŶĚŝŶĂƩĂƌĂŵƵůůĂĂƐǁĞůůĂƐĂŵŽƵŶƚƐŝŶǀĞƐƚĞĚŝŶŶĞǁKĚĞů
outlets opened during the year.
CASH FLOW
The investment in inventories increased by 13% to Rs 1.35
billion. The average inventory holding period was at 5.8 months
compared to 5.2 months at the previous
year end.
EPS
DIVIDENDS
dŚĞŶĞƚĐĂƐŚĨƌŽŵŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐǁĂƐŝŶƐƵĸĐŝĞŶƚƚŽĨƵŶĚ
investment in property, plant & equipment.
A total of 24 cents dividend per share was paid for 2013/14
which compares with the 35 cents per share paid for 2012/13
ĮŶĂŶĐŝĂůLJĞĂƌ͘dŚŝƐƚƌĂŶƐůĂƚĞĚƚŽĂƉĂLJŽƵƚŽĨϯϰйŽĨƚŚĞĂŌĞƌ
ƚĂdžƉƌŽĮƚŝŶϮϬϭϯͬϭϰ͘dŚĞƐŽůǀĞŶĐLJƉŽƐŝƟŽŶǁĂƐĞdžĂŵŝŶĞĚ
ƉƌŝŽƌƚŽƐƵĐŚĚŝƐƚƌŝďƵƟŽŶďLJƚŚĞŝƌĞĐƚŽƌƐĂŶĚĐŽŶĮƌŵĞĚďLJƚŚĞ
Auditors as per the applicable statutory requirements.
&ŝŶĂŶĐŝŶŐŽĨĐĂƐŚŇŽǁĚĞĮĐŝƚǁĂƐĨƌŽŵďŽƌƌŽǁŝŶŐƐĂůďĞŝƚĂƚ
ůŽǁĞƌƌĂƚĞƐŽĨŝŶƚĞƌĞƐƚ͘ƵĞƚŽƚŚŝƐƚŚĞŐĞĂƌŝŶŐƌĂƟŽĂƚLJĞĂƌĞŶĚ
increased to 16.6% from 11.6% year ago.
TOTAL EQUITY AND RETURN
Total Equity increased to Rs 5.2bn from Rs5.1 bn through the
ƌĞƚĞŶƟŽŶŽĨĞĂƌŶŝŶŐƐ͘
The return on equity improved marginally to 3.5% from 3.1% in
the previous year.
16
10
8
6
4
2
0
2011
44
AWPLR
ODEL ANNUAL REPORT
2012
/ŶŇĂƟŽŶ
2013
2014
ODEL ANNUAL REPORT
45
RISK MANAGEMENT
The Board of Directors has the overall responsibility to manage
ƌŝƐŬƐ ĞīĞĐƟǀĞůLJ ƚŽ ĞŶƐƵƌĞ ďƵƐŝŶĞƐƐ ĐŽŶƟŶƵŝƚLJ ĂŶĚ ŐƌŽǁƚŚ͘ KŶ
ďĞŚĂůĨŽĨƚŚĞŽĂƌĚƚŚĞƵĚŝƚŽŵŵŝƩĞĞƌĞǀŝĞǁƐƚŚĞĞīĞĐƟǀĞŶĞƐƐ
ŽĨƚŚĞƉƌŽĐĞƐƐĞƐŝŶƉůĂĐĞ͘dŚĞŝŶƚĞƌŶĂůĂƵĚŝƚĨƵŶĐƟŽŶĂƐƐŝƐƚƐŝŶ
monitoring the adherence to the systems and procedures and
the improvement of the internal controls of the business. The
ƐĞƌǀŝĐĞƐŽĨĂŶĞdžƚĞƌŶĂůĮƌŵŽĨĂĐĐŽƵŶƚĂŶƚƐŝƐĂůƐŽŽďƚĂŝŶĞĚǁŝƚŚ
ĂĚĞĮŶĞĚƐĐŽƉĞŽĨǁŽƌŬƚŽƌĞǀŝĞǁƚŚĞƐLJƐƚĞŵĂĚŚĞƌĞŶĐĞ͕ĂŶĚƚŽ
support the internal audit.
Though there are many risks to which a business is exposed some
ŽĨƚŚĞŬĞLJƌŝƐŬƐŝŵƉĂĐƟŶŐKĚĞůW>ĂƌĞĚŝƐĐƵƐƐĞĚďĞůŽǁ͘
ŚĂŶŐĞƐŝŶDĂĐƌŽĞĐŽŶŽŵŝĐĐŽŶĚŝƟŽŶƐŝŵƉĂĐƚKĚĞů͘dŚĞŝŶĐƌĞĂƐĞ
in per capita income and tourist arrivals are catalysts for growth of
the target market segment of Odel. The changes in the economic
ƉƌŽũĞĐƟŽŶƐĂŶĚƉĞƌĨŽƌŵĂŶĐĞĂƌĞĐůŽƐĞůLJŵŽŶŝƚŽƌĞĚƚŽƵŶĚĞƌƐƚĂŶĚ
ƚŚĞŝŵƉĂĐƚƚŽKĚĞů͘dŚĞƉƌŽĚƵĐƚŽīĞƌĂŶĚĐŽŵŵƵŶŝĐĂƟŽŶŽĨƚŚĞ
ǀĂůƵĞĂƌĞƚĂŝůŽƌĞĚƚŽƌĞĐŽŐŶŝnjĞƚŚĞĐŚĂŶŐĞŝŶĐƵƐƚŽŵĞƌŶĞĞĚƐĂŶĚ
ĂƐƉŝƌĂƟŽŶƐĂŶĚŝƐĐŽŶƐƚĂŶƚůLJƌĞǀŝĞǁĞĚ͘
dŚĞĂďŝůŝƚLJƚŽĨƵŶĚƚŚĞďƵƐŝŶĞƐƐĂƚĐŽŵƉĞƟƟǀĞƌĂƚĞƐŝƐĐƌƵĐŝĂů͘dŚĞ
changes in fundamentals which drive interest rates in the market
ĂƌĞĐůŽƐĞůLJŵŽŶŝƚŽƌĞĚ͘ůƐŽKĚĞůĂĐƟǀĞůLJĚĞǀĞůŽƉƐƌĞůĂƟŽŶƐŚŝƉ
ǁŝƚŚĂŵƵůƟƚƵĚĞŽĨůĞŶĚĞƌƐĂŶĚƉŽƚĞŶƟĂůƐŽƵƌĐĞƐƚŽďƌŽĂĚĞŶƚŚĞ
ĨƵŶĚŝŶŐŽƉƟŽŶƐ͘dŚĞůĞǀĞƌĂŐĞƚŽƌĂŝƐĞĚĞďƚŝƐƐƚƌĞŶŐƚŚĞŶĞĚďLJƚŚĞ
infusion of capital in 2012/13 through the rights issue of shares.
The quality of service provided by employees and their work ethics
and integrity are also an important aspect of risk management.
dŚĞƐƚĂīĂƌĞƌĞĐƌƵŝƚĞĚƚŚƌŽƵŐŚĂƐĐƌĞĞŶŝŶŐƉƌŽĐĞƐƐĂŶĚƉƌŽǀŝĚĞĚ
ǁŝƚŚ ƌĞŐƵůĂƌ ƚƌĂŝŶŝŶŐ ĂŶĚ ĚĞǀĞůŽƉŵĞŶƚ ŽƉƉŽƌƚƵŶŝƟĞƐ ƚŽ ŚŽŶĞ
their skills. The environment is created to encourage commitment
ANNUAL REPORT OF THE DIRECTORS ON THE STATE OF AFFAIRS
ĂŶĚƉĂƌƟĐŝƉĂƟŽŶ͘dŚĞŽƌŝĞŶƚĂƟŽŶƚŽǁĂƌĚƐĚĞĮŶĞĚƐLJƐƚĞŵƐĂŶĚ
procedures to be followed in most areas of work and the checks
and balances in place to ensure compliance are regularly reviewed
and improved where necessary.
The Directors present their report to the members together with
the audited Financial Statements of Odel PLC and Consolidated
Financial Statements of the group for the year ended 31st
March 2014.
dŚĞĂďŝůŝƚLJƚŽƐŽƵƌĐĞƚŚĞƉƌŽĚƵĐƚƐĞĸĐŝĞŶƚůLJĂŶĚďĞĂďůĞƚŽĞŶƐƵƌĞ
a range which appeals to the Odel customer is an important
aspect of managing product risks. Maintenance of highest quality
standards is synonymous with Odel brand. Odel has a diverse and
ďƌŽĂĚďĂƐĞŽĨƐƵƉƉůŝĞƌƐĂŶĚĐŽŶƟŶƵŽƵƐůLJŵŽŶŝƚŽƌƐƚŚĞĐŚĂŶŐĞƐ
in fashion to ensure the range carried mirrors the latest trends.
PRINCIPAL ACTIVITY
The assets are safeguarded physically where relevant and also
ŝŶƐƵƌĞĚĂƐĂƉƉƌŽƉƌŝĂƚĞƚŽŵŝƟŐĂƚĞƌŝƐŬƐŽĨĚĂŵĂŐĞĂŶĚƵŶŝŶƚĞŶĚĞĚ
use. These measures too are reviewed by the internal audit and
a comprehensive assessment is made annually of the coverage
of risks through insurance. Also the ability of the underlying IT
systems to scale with expanding business requirements is closely
ŵŽŶŝƚŽƌĞĚ͘dŚĞĐŽŶƟŶƵŝŶŐďƵƐŝŶĞƐƐŐƌŽǁƚŚƌĞƋƵŝƌĞƐƐƵƉƉŽƌƚŽĨ
ůĂƚĞƐƚ /ŶĨŽƌŵĂƟŽŶ ĂŶĚ ŽŵŵƵŶŝĐĂƟŽŶ dĞĐŚŶŽůŽŐLJ ƚŽ ĞŶƐƵƌĞ
ĞĸĐŝĞŶĐLJĂŶĚĞīĞĐƟǀĞŶĞƐƐŽĨĚĞůŝǀĞƌLJ͘
dŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƚLJŽĨƚŚĞŽŵƉĂŶLJĚƵƌŝŶŐƚŚĞLJĞĂƌǁĂƐĨĂƐŚŝŽŶ
ƌĞƚĂŝůŝŶŐŽīĞƌŝŶŐŝƚƐĐƵƐƚŽŵĞƌƐĂƚŽƚĂůƐŚŽƉƉŝŶŐĞdžƉĞƌŝĞŶĐĞ͘dŚĞƌĞ
ŚĂǀĞďĞĞŶŶŽƐŝŐŶŝĮĐĂŶƚĐŚĂŶŐĞƐŝŶƚŚĞĂĐƟǀŝƟĞƐŽĨƚŚĞĐŽŵƉĂŶLJ
during the year under review.
GOING CONCERN
dŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŝƐ ƐĂƟƐĮĞĚ ƚŚĂƚ ƚŚĞ ŽŵƉĂŶLJ ŚĂƐ ƚŚĞ
ĂĚĞƋƵĂƚĞƌĞƐŽƵƌĐĞƐƚŽĐŽŶƟŶƵĞŝƚƐŽƉĞƌĂƟŽŶƐŝŶƚŚĞĨŽƌĞƐĞĞĂďůĞ
future. Accordingly, the Financial Statements are prepared based
ŽŶƚŚĞ'ŽŝŶŐŽŶĐĞƌŶĂƐƐƵŵƉƟŽŶ͘
GROUP REVENUE
The revenue of the Group during the year was Rs 4,595,053,622/(2013-Rs.4,533,676,999/-). An analysis of the revenue is given in
Note No 3 to the Financial Statements.
GROUP EMPLOYMENT
The Group had employed 908 persons as at 31st March 2014.
DIVIDENDS
The Company paid Final Dividend of Rs.0.10 per share for the
ĮŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭƐƚDĂƌĐŚϮϬϭϯƚŽƐŚĂƌĞŚŽůĚĞƌƐŽŶϭϵƚŚ
June 2013 and an Interim Dividend of Rs.0.12 per share for the
ĮŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭƐƚDĂƌĐŚϮϬϭϰƚŽƐŚĂƌĞŚŽůĚĞƌƐŽŶϮϴƚŚ
November 2013.
ĮŶĂůĚŝǀŝĚĞŶĚŽĨZƐ͘Ϭ͘ϭϮƉĞƌƐŚĂƌĞĨŽƌƚŚĞĮŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚ
31st March 2014 has been declared on 29th May 2014 to be paid
ŽŶƚŚĞƐƉĞĐŝĮĞĚĚĂƚĞ͘
STATEMENT OF SOLVENCY
Based on the audited Financial Statements for the year ended
31st March 2014 the Board is of the opinion that the company is
ŝŶĂƉŽƐŝƟŽŶƚŽƉĂLJĚĞďƚƐŝŶƚŚĞŶŽƌŵĂůĐŽƵƌƐĞŽĨďƵƐŝŶĞƐƐĂŶĚ
the value of company’s net assets is in excess of its stated capital.
RESERVES
Total Group Reserves as at 31st March 2014, amounted to Rs
2,423,557,676/- (2013 – Rs.2,298,193,518/-). The movements
of the Reserves during the year are shown in the Statement of
Changes in Equity on page no 58
STATED CAPITAL
The Stated Capital of the Company as at 31st March 2014 was
Rs.2,795,513,620/- comprising of 272,129,431 ordinary shares.
dŚĞĐŽŵƉĂŶLJĂůůŽƩĞĚϭϮϳ͕ϭϳϵ͕ϰϯϭŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƚZƐ͘ϮϬƉĞƌ
share through a rights issue on 17th December 2012. The funds
ƌĂŝƐĞĚĨƌŽŵƚŚŝƐƌŝŐŚƚƐŝƐƐƵĞǁĞƌĞƉĂƌƚůLJƵƐĞĚƚŽƐĞƩůĞďŽƌƌŽǁŝŶŐƐ
ĂŶĚƚŚĞďĂůĂŶĐĞĨƵŶĚƐĂƌĞŝŶǀĞƐƚĞĚŝŶƐŚŽƌƚƚĞƌŵŝŶƐƚƌƵŵĞŶƚƐƵŶƟů
ƚŚĞƉůĂŶƐĨŽƌƉƌŽƉŽƐĞĚĞdžƉĂŶƐŝŽŶŽĨƌĞƚĂŝůƐƉĂĐĞĂƌĞĮŶĂůŝƐĞĚ͘
PROPERTY, PLANT & EQUIPMENT
dŚĞƚŽƚĂůŶĞƚĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞŽŶĂĐƋƵŝƐŝƟŽŶŽĨWƌŽƉĞƌƚLJ͕ƉůĂŶƚ
ĂŶĚĞƋƵŝƉŵĞŶƚĚƵƌŝŶŐƚŚĞLJĞĂƌŝŶĐůƵĚŝŶŐĮŶĂŶĐĞůĞĂƐĞĚĂƐƐĞƚƐ
amounted to Rs.433,069,954/- (2012/13-Rs.88,412,878/-). The
46
ODEL ANNUAL REPORT
details of Property, plant and equipment are given in Note 9 to
the Financial Statements.
STATUTORY PAYMENTS
dŚĞŝƌĞĐƚŽƌƐ͕ƚŽƚŚĞďĞƐƚŽĨƚŚĞŝƌŬŶŽǁůĞĚŐĞĂŶĚďĞůŝĞĨ͕ĐŽŶĮƌŵ
ƚŚĂƚĂůůƉĂLJŵĞŶƚƐŝŶƌĞƐƉĞĐƚŽĨƐƚĂƚƵƚŽƌLJůŝĂďŝůŝƟĞƐƚŽŵƉůŽLJĞĞƐ
ĂŶĚƚŽƚŚĞ'ŽǀĞƌŶŵĞŶƚŚĂǀĞďĞĞŶŵĂĚĞǁŝƚŚŝŶƚŚĞƐƟƉƵůĂƚĞĚ
ƉĞƌŝŽĚĚƵƌŝŶŐƚŚĞĮŶĂŶĐŝĂůLJĞĂƌϮϬϭϯͬϭϰ͘
CORPORATE DONATIONS
The Company has donated Rs 1,085,486/- during the year and
the majority of these were scholarships to school students in
Balapitya area.
COMPANY RECORDS
The Directors have disclosed the nature and extent of their
relevant interest in shares issued by the Company and interest in
ƚƌĂŶƐĂĐƟŽŶƐŽƌƉƌŽƉŽƐĞĚƚƌĂŶƐĂĐƟŽŶƐǁŝƚŚƚŚĞŽŵƉĂŶLJĚƵƌŝŶŐ
ƚŚĞLJĞĂƌ͕ƚŽƚŚĞŽĂƌĚŽĨƚŚĞŽŵƉĂŶLJĂŶĚƐƵĐŚŝŶĨŽƌŵĂƟŽŶŚĂƐ
been duly entered in the Interest Register of the Company which
is a part and parcel of this Annual Report. All the Company Records
that are required to maintain under the provisions of the Act have
also been properly maintained.
DIRECTORATE
The Directors of the Company as at 31st March 2014.
Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞʹŚĂŝƌŵĂŶͬEŽŶ
džĞĐƵƟǀĞŝƌĞĐƚŽƌ
DƐ͘KƚĂƌĂĞů'ƵŶĞǁĂƌĚĞŶĞʹdžĞĐƵƟǀĞŝƌĞĐƚŽƌͬK
Dƌ͘WĂƵůdŽƉƉŝŶŐʹEŽŶdžĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂʹEŽŶdžĞĐƵƟǀĞ
Independent Director
Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞLJ/ŐŶĂƟƵƐWĞƌĞƌĂʹEŽŶ
džĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
Dƌ͘ĂƚƵŬŚĞŶŐzŽŽŶŐŚŽŽŶŐʹEŽŶdžĞĐƵƟǀĞEŽŶ
Independent Director
Dƌ͘ZĂLJŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶʹEŽŶdžĞĐƵƟǀĞEŽŶ
Independent Director
Dƌ͘<ŽŚ,ƵĂƚ>ĂŝʹEŽŶdžĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
Dƌ͘,ŝĂEŐĞĞzĞŽǁʹEŽŶdžĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
(Alternate to Director Mr. Datuk Cheng Yoong Choong)
Mr. Datuk Cheng Yoong Choong resigned as a Director of the
ŽŵƉĂŶLJǁŝƚŚĞīĞĐƚĨƌŽŵϯϭƐƚDĂLJϮϬϭϰ͘Dƌ͘,ŝĂEŐĞĞzĞŽǁ
ĐĞĂƐĞĚƚŽďĞŚŝƐĂůƚĞƌŶĂƚĞǁŝƚŚĞīĞĐƚĨƌŽŵϯϭƐƚDĂLJϮϬϭϰ͘
Annual declarations as per the format specified have been
provided by the Directors regarding their independence and
ďĂƐĞĚŽŶƐƵĐŚĚĞĐůĂƌĂƟŽŶƐƚŚĞŽĂƌĚŚĂƐĚĞƚĞƌŵŝŶĞĚƚŚĞĂďŽǀĞ
Directors to be independent.
ODEL ANNUAL REPORT
47
ANNUAL REPORT OF THE DIRECTORS ON THE STATE OF AFFAIRS
ANNUAL REPORT OF THE DIRECTORS ON THE STATE OF AFFAIRS
DIRECTOR’S SHAREHOLDINGS
dŚĞĂƩĞŶĚĂŶĐĞŽĨƚŚĞŵĞŵďĞƌƐĂƚƚŚĞďŽĂƌĚŵĞĞƟŶŐƐŝƐŐŝǀĞŶďĞůŽǁ
The Directors’ holding of number of ordinary shares of the Company as at 31st March 2014 and as at the date of this report is as follows:
Name of the Director
As at 31st March 2014
Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞ
Ms. Otara Del Gunewardene
Mr. Paul Topping
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ
ϭ͕ϬϬϬ͕ϬϬϬ
As at 31st March 2013
ϭ͕ϬϬϬ͕ϬϬϬ
80,833,100
80,833,100
Nil
Nil
Eŝů
Eŝů
Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞLJ/ŐŶĂƟƵƐWĞƌĞƌĂ Eŝů
Eŝů
Mr. Datuk Cheng Yoong Choong*
Nil
Nil
Dƌ͘,ŝĂEŐĞĞzĞŽǁΎ
(Alternate to Director Mr. Datuk Cheng Yoong Choong)
Eŝů
Dƌ͘ZĂLJŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ Eŝů
Eŝů
Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ
Eŝů
Eŝů
*Resigned w.e.f. 31st May 2014
Eŝů
EĂŵĞDĞĞƟŶŐƐŚĞůĚDĞĞƟŶŐƐĂƩĞŶĚĞĚ
Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞ
ŚĂŝƌŵĂŶͬEŽŶdžĞĐƵƟǀĞŝƌĞĐƚŽƌ
Ms. Otara Del Gunewardene
džĞĐƵƟǀĞŝƌĞĐƚŽƌͬK
Mr. Paul Topping
EŽŶdžĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
Ϭϱ
Ϭϱ
05
05
05
03
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ
Ϭϱ
EŽŶdžĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞLJ/ŐŶĂƟƵƐWĞƌĞƌĂ Ϭϱ
EŽŶdžĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽr
Dƌ͘ZĂLJŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ Ϭϱ
EŽŶdžĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ Ϭϱ
EŽŶdžĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
Mr. Datak Cheng Yoong Choong
05
EŽŶdžĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
;ƌĞƐŝŐŶĞĚŽŶϯϭƐƚDĂLJϮϬϭϰͿ
Dƌ͘,ŝĂEŐĞĞzĞŽǁ Ϭϱ
EŽŶdžĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ
;ůƚĞƌŶĂƚĞƚŽŝƌĞĐƚŽƌDƌ͘ĂƚƵŬŚĞŶŐzŽŽŶŐŚŽŽŶŐͿ
;ƌĞƐŝŐŶĞĚŽŶϯϭƐƚDĂLJϮϬϭϰͿ
Ϭϱ
Ϭϱ
Ϭϱ
Ϭϱ
02
Ϭϱ
EVENTS AFTER BALANCE SHEET DATE
DIRECTORS’ INTEREST IN CONTRACTS
RISK MANAGEMENT
Directors’ interest in contracts of the Company is disclosed in
Note 27 to the Financial statements, and has been declared at
ŵĞĞƟŶŐƐŽĨƚŚĞŝƌĞĐƚŽƌƐĂŶĚĞŶƚĞƌĞĚŝŶƚŚĞ/ŶƚĞƌĞƐƚZĞŐŝƐƚĞƌŽĨ
the Company. The Directors have no direct or indirect interest
in any other contract or proposed contract with the Company.
Ɛ ƉĂƌƚ ŽĨ ŐŽǀĞƌŶĂŶĐĞ ƉƌŽĐĞƐƐĞƐ ƚŚĞ ŽĂƌĚ ŽŶ Ă ĐŽŶƟŶƵŽƵƐ
basis reviews and evaluates the internal controls and risks of the
ĐŽŵƉĂŶLJĂŶĚƚĂŬĞƐĂŶLJŵĞĂƐƵƌĞƐƌĞƋƵŝƌĞĚƚŽŵŝƟŐĂƚĞƚŚĞƌŝƐŬƐ͘
No circumstances have arisen and no material events have
occurred during the period between the Balance Sheet date and
Directors signing of Accounts that require disclosure or adjustment
ƚŽƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͕ĞdžĐĞƉƚĨŽƌƚŚĞŝŶĨŽƌŵĂƟŽŶĚŝƐĐůŽƐĞĚ
in Note 31 to the Financial Statement.
CONTINGENT LIABILITIES AND COMMITMENTS
AUDITORS
CORPORATE GOVERNANCE
The Board of Directors has acknowledged the responsibility to
ĞŶƐƵƌĞŐŽŽĚŐŽǀĞƌŶĂŶĐĞŝŶĐŽŶĚƵĐƟŶŐƚŚĞďƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐŽĨ
the company. Further, independent directors have been appointed
ƚŽƚŚĞŽĂƌĚĂŶĚŽĂƌĚŽŵŵŝƩĞĞƐŚĂǀĞďĞĞŶƐĞƚƵƉĂƐĨŽůůŽǁƐ͘
ƵĚŝƚŽŵŵŝƩĞĞ
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ;ŚĂŝƌŵĂŶͿ
Mr. Paul Topping
Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ
dŽƚŚĞďĞƐƚŽĨŬŶŽǁůĞĚŐĞĂŶĚŝŶĨŽƌŵĂƟŽŶĂǀĂŝůĂďůĞƚŽƚŚĞŽĂƌĚ
ƚŚĞƌĞĂƌĞŶŽĐŽŶƟŶŐĞŶĐŝĞƐŽƌĐŽŵŵŝƚŵĞŶƚƐ͕ĞdžĐĞƉƚĨŽƌƚŚĞŝƚĞŵƐ
ƚŚĂƚĂƌĞůŝƐƚĞĚŽŶEŽƚĞϮϲƚŽƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
/ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽŵƉĂŶŝĞƐĐƚEŽ͘ϳŽĨϮϬϬϳ͕ƌĞƐŽůƵƟŽŶ
proposing the re-appointment of Messrs. Ernst and Young,
Chartered Accountants, as Auditors to the Company will be
ƐƵďŵŝƩĞĚĂƚƚŚĞŶŶƵĂů'ĞŶĞƌĂůDĞĞƟŶŐ͘
By Order of the Board of
Odel PLC
ZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞ
Mr. Paul Topping (Chairman)
Mr. A.D.E.I. Perera
Dƌ͘^͘^͘<ƵůĂƚƵŶŐĂ
Dƌ͘ZĂLJŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ
(sgd)
(sgd)
Ruchi Gunewardene
Chairman
Otara Gunewardene
Director/CEO
(sgd)
S S P Corporate Services
(Private) Limited
Secretaries
29th May 2014
48
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
49
THE STATEMENT OF DIRECTORS’RESPONSIBILITY
dŚĞ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŽĨ ƚŚĞ ŝƌĞĐƚŽƌƐ ŝŶ ƌĞůĂƟŽŶ ƚŽ ƚŚĞ ĮŶĂŶĐŝĂů
statements is set out in this statement. The responsibility of
ƚŚĞĂƵĚŝƚŽƌƐ͕ŝŶƌĞůĂƟŽŶƚŽƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƉƌĞƉĂƌĞĚŝŶ
accordance with the provisions of the Companies Act No 7 of
2007, is set out in the Report of the Auditors.
dŚĞĚŝƌĞĐƚŽƌƐĂƌĞƌĞƋƵŝƌĞĚƚŽƉƌĞƉĂƌĞƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚ
to provide the auditors with every opportunity to take whatever
ƐƚĞƉƐĂŶĚƵŶĚĞƌƚĂŬĞǁŚĂƚĞǀĞƌŝŶƐƉĞĐƟŽŶƐƚŚĂƚŵĂLJďĞ
considered being appropriate to enable them to give their audit
opinion.
dŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĐŽŵƉƌŝƐĞŽĨ͗
^ƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶǁŚŝĐŚƉƌĞƐĞŶƚƐĂƚƌƵĞĂŶĚĨĂŝƌ
ǀŝĞǁŽĨƚŚĞƐƚĂƚĞŽĨĂīĂŝƌƐŽĨƚŚĞĐŽŵƉĂŶLJĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐĂƐ
ĂƚƚŚĞĞŶĚŽĨƚŚĞĮŶĂŶĐŝĂůLJĞĂƌ͖ĂŶĚ
&ƵƌƚŚĞƌ͕ĂƐƌĞƋƵŝƌĞĚďLJ^ĞĐƟŽŶϱϲ;ϮͿŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚEŽϳ
ŽĨϮϬϬϳ͕ƚŚĞŽĂƌĚŽĨĚŝƌĞĐƚŽƌƐŚĂƐĐŽŶĮƌŵĞĚƚŚĂƚƚŚĞĐŽŵƉĂŶLJ͕
ďĂƐĞĚ ŽŶ ƚŚĞ ŝŶĨŽƌŵĂƟŽŶ ĂǀĂŝůĂďůĞ͕ ƐĂƟƐĮĞĚ ƚŚĞ ƐŽůǀĞŶĐLJ ƚĞƐƚ
ŝŵŵĞĚŝĂƚĞůLJ ĂŌĞƌ ƚŚĞ ĚŝƐƚƌŝďƵƟŽŶ͕ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ^ĞĐƟŽŶ
57 of the Companies Act no 7 of 2007. The board of directors has
ŽďƚĂŝŶĞĚĐĞƌƟĮĐĂƚĞƐĨƌŽŵƚŚĞĂƵĚŝƚŽƌƐ͕ƉƌŝŽƌƚŽĚĞĐůĂƌŝŶŐĮŶĂů
ŝǀŝĚĞŶĚŽĨZƐ͘Ϭ͘ϭϬƉĞƌƐŚĂƌĞĨŽƌƚŚĞĮŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭƐƚ
March 2013 .(Paid on 19th June 2014) and an Interim Dividend of
ZƐ͘Ϭ͘ϭϮƉĞƌƐŚĂƌĞĨŽƌƚŚĞĮŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭƐƚDĂƌĐŚϮϬϭϰ͘
(paid on 28th November 2013)
Income statement& statement of comprehensive income of
the company and its subsidiaries, which presents a true and fair
ǀŝĞǁ ŽĨ ƚŚĞ ƉƌŽĮƚͬůŽƐƐ ŽĨ ƚŚĞ ĐŽŵƉĂŶLJ ĂŶĚ ŝƚƐ ƐƵďƐŝĚŝĂƌŝĞƐ ĨŽƌ
ƚŚĞĮŶĂŶĐŝĂůLJĞĂƌ͘
dŚĞĚŝƌĞĐƚŽƌƐĂƌĞƌĞƋƵŝƌĞĚƚŽĐŽŶĮƌŵƚŚĂƚƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ
ŚĂǀĞďĞĞŶƉƌĞƉĂƌĞĚ͖
ƵƐŝŶŐĂƉƉƌŽƉƌŝĂƚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐǁŚŝĐŚŚĂǀĞďĞĞŶƐĞůĞĐƚĞĚ
and applied in a consistent manner, and material departures, if
ĂŶLJ͕ŚĂǀĞďĞĞŶĚŝƐĐůŽƐĞĚĂŶĚĞdžƉůĂŝŶĞĚ͖ĂŶĚ
ƉƌĞƐĞŶƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ^ƌŝ>ĂŶŬĂĐĐŽƵŶƟŶŐ
^ƚĂŶĚĂƌĚƐ͖ĂŶĚƚŚĂƚ
ƌĞĂƐŽŶĂďůĞĂŶĚƉƌƵĚĞŶƚũƵĚŐĞŵĞŶƚƐĂŶĚĞƐƟŵĂƚĞƐŚĂǀĞďĞĞŶ
ŵĂĚĞƐŽƚŚĂƚƚŚĞĨŽƌŵĂŶĚƐƵďƐƚĂŶĐĞŽĨƚƌĂŶƐĂĐƟŽŶƐĂƌĞƉƌŽƉĞƌůLJ
ƌĞŇĞĐƚĞĚ͖ĂŶĚ
ƉƌŽǀŝĚĞƚŚĞŝŶĨŽƌŵĂƟŽŶƌĞƋƵŝƌĞĚďLJĂŶĚŽƚŚĞƌǁŝƐĞĐŽŵƉůLJ
ǁŝƚŚ ƚŚĞ ŽŵƉĂŶŝĞƐ Đƚ ĂŶĚ ƚŚĞ >ŝƐƟŶŐ ZƵůĞƐ ŽĨ ƚŚĞ ŽůŽŵďŽ
Stock Exchange.
The directors are also required to ensure that the company has
ĂĚĞƋƵĂƚĞƌĞƐŽƵƌĐĞƐƚŽĐŽŶƟŶƵĞŝŶŽƉĞƌĂƟŽŶƚŽũƵƐƟĨLJĂƉƉůLJŝŶŐ
ƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐŝŶƉƌĞƉĂƌŝŶŐƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
The directors are of the view that they have discharged their
ƌĞƐƉŽŶƐŝďŝůŝƟĞƐĂƐƐĞƚŽƵƚŝŶƚŚŝƐƐƚĂƚĞŵĞŶƚ͘
COMPLIANCE REPORT
dŚĞĚŝƌĞĐƚŽƌƐĐŽŶĮƌŵƚŚĂƚƚŽƚŚĞďĞƐƚŽĨƚŚĞŝƌŬŶŽǁůĞĚŐĞ͕ĂůůƚĂdžĞƐ͕
ĚƵƟĞƐĂŶĚůĞǀŝĞƐƉĂLJĂďůĞďLJƚŚĞĐŽŵƉĂŶLJĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐ͕Ăůů
ĐŽŶƚƌŝďƵƟŽŶƐ͕ůĞǀŝĞƐĂŶĚƚĂdžĞƐƉĂLJĂďůĞŽŶďĞŚĂůĨŽĨĂŶĚŝŶƌĞƐƉĞĐƚ
of the employees of the company and its subsidiaries, and all other
known statutory dues as were due and payable by the company
and its subsidiaries as at the balance sheet date have been paid,
or where relevant provided for.
By Order of the Board
REPORT OF THE REMUNERATION COMMITTEE
The Remuneration Committee comprised the following Non
Executive Directors at the year-end three of whom were
independent.
Mr. Paul Topping – Chairman
REMUNERATION COMMITTEE MEETINGS
dŚĞŽŵŵŝƩĞĞĚŝĚŶŽƚŵĞĞƚĨŽƌŵĂůůLJĚƵƌŝŶŐƚŚĞLJĞĂƌ͘
dŚĞĂŐŐƌĞŐĂƚĞƌĞŵƵŶĞƌĂƟŽŶƉĂŝĚƚŽŝƌĞĐƚŽƌƐŝƐĚŝƐĐůŽƐĞĚŝŶEŽƚĞ
ϳƚŽƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞLJ/ŐŶĂƟƵƐWĞƌĞƌĂ
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ
(sgd)
Dƌ͘ZĂLJŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ
THE RESPONSIBILITIES OF THE REMUNERATION
COMMITTEE INCLUDE,
Paul Topping
ŚĂŝƌŵĂŶʹZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞ
29th May 2014.
ŶƐƵƌŝŶŐƚŚĞƌĞŵƵŶĞƌĂƟŽŶƉŽůŝĐLJŽĨƚŚĞĐŽŵƉĂŶLJƉƌŽǀŝĚĞƐĂ
ĐŽŵƉĞƟƟǀĞ͕ĂƩƌĂĐƟǀĞĂŶĚƌĞĂƐŽŶĂďůĞƌĞŵƵŶĞƌĂƟŽŶƉĂĐŬĂŐĞĨŽƌ
employees at all levels on par with industry standards giving due
ĐŽŶƐŝĚĞƌĂƟŽŶƚŽďƵƐŝŶĞƐƐƉĞƌĨŽƌŵĂŶĐĞĂŶĚůŽŶŐƚĞƌŵƐŚĂƌĞŚŽůĚĞƌ
returns.
ŶƐƵƌŝŶŐƚŚĞƌĞŵƵŶĞƌĂƟŽŶƉĂĐŬĂŐĞŽĨĞŵƉůŽLJĞĞŝƐůŝŶŬĞĚƚŽ
ƉĞƌĨŽƌŵĂŶĐĞ͕ƌĞƐƉŽŶƐŝďŝůŝƚLJ͕ĞdžƉĞƌƟƐĞĂŶĚĐŽŶƚƌŝďƵƟŽŶ͘
ŶƐƵƌŝŶŐĨŽƌŵĂůĂŶĚƚƌĂŶƐƉĂƌĞŶƚƉƌŽĐĞĚƵƌĞŝŶŝŵƉůĞŵĞŶƟŶŐ
ƚŚĞƌĞŵƵŶĞƌĂƟŽŶƉŽůŝĐLJŽĨƚŚĞŽŵƉĂŶLJ͘
ZĞĐŽŵŵĞŶĚŝŶŐƚŽƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐƚŚĞƌĞŵƵŶĞƌĂƟŽŶ
ƉĂĐŬĂŐĞŽĨƚŚĞŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌ͘
SSP Corporate Services (Pvt) Ltd
Secretaries
29 May 2014
Further, the directors have a responsibility to ensure that the
ĐŽŵƉĂŶLJ ŵĂŝŶƚĂŝŶƐ ƐƵĸĐŝĞŶƚ ĂĐĐŽƵŶƟŶŐ ƌĞĐŽƌĚƐ ƚŽ ĚŝƐĐůŽƐĞ͕
ǁŝƚŚƌĞĂƐŽŶĂďůĞĂĐĐƵƌĂĐLJƚŚĞĮŶĂŶĐŝĂůƉŽƐŝƟŽŶŽĨƚŚĞĐŽŵƉĂŶLJ
and of the group.
The directors are also responsible for taking reasonable steps
to safeguard the assets of the company and of the group and in
ƚŚŝƐƌĞŐĂƌĚƚŽŐŝǀĞƉƌŽƉĞƌĐŽŶƐŝĚĞƌĂƟŽŶƚŽƚŚĞĞƐƚĂďůŝƐŚŵĞŶƚŽĨ
ĂƉƉƌŽƉƌŝĂƚĞŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐLJƐƚĞŵƐǁŝƚŚĂǀŝĞǁƚŽƉƌĞǀĞŶƟŶŐ
ĂŶĚĚĞƚĞĐƟŶŐĨƌĂƵĚĂŶĚŽƚŚĞƌŝƌƌĞŐƵůĂƌŝƟĞƐ
50
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
51
REPORT OF THE AUDIT COMMITTEE
COMPOSITION OF THE AUDIT COMMITTEE
dŚĞƵĚŝƚŽŵŵŝƩĞĞ͕ĂƉƉŽŝŶƚĞĚďLJĂŶĚƌĞƐƉŽŶƐŝďůĞƚŽƚŚĞŽĂƌĚ
ŽĨ ŝƌĞĐƚŽƌƐ͕ ĐŽŵƉƌŝƐĞƐ ƚŚƌĞĞ EŽŶͲdžĞĐƵƟǀĞ ŝƌĞĐƚŽƌƐ͕ ƚǁŽ ŽĨ
ǁŚŽŵĂƌĞŝŶĚĞƉĞŶĚĞŶƚ͘dŚĞŽŵŵŝƩĞĞŝƐŵĂĚĞƵƉŽĨŵĞŵďĞƌƐ
ǁŚŽďƌŝŶŐƚŚĞŝƌǀĂƌŝĞĚĞdžƉĞƌƟƐĞĂŶĚŬŶŽǁůĞĚŐĞƚŽĞīĞĐƟǀĞůLJĐĂƌƌLJ
ŽƵƚƚŚĞŝƌĚƵƟĞƐ͘DĞŵďĞƌƐŽĨƚŚĞŽŵŵŝƩĞĞĂƌĞ͖
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂͲŚĂŝƌŵĂŶ
Mr. Paul Topping
Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ
OBJECTIVES AND ROLE OF THE AUDIT COMMITTEE
dŚĞŵĂŝŶŽďũĞĐƟǀĞŽĨƚŚĞƵĚŝƚŽŵŵŝƩĞĞŝƐƚŽĂƐƐŝƐƚƚŚĞŽĂƌĚ
of Directors to perform its duties effectively and efficiently.
Accordingly, the objectives of the Audit Committee can be
described in detail as follows:
KǀĞƌƐĞĞƚŚĞĮŶĂŶĐŝĂůƌĞƉŽƌƟŶŐƉƌŽĐĞƐƐĂŶĚĚĞƚĞƌŵŝŶĞƚŚĂƚ
ƚŚĞ ĮŶĂŶĐŝĂů ƌĞƉŽƌƚƐ ƉƌĞƐĞŶƚ ĂĐĐƵƌĂƚĞ͕ ĐŽŵƉůĞƚĞ ĂŶĚ ƟŵĞůLJ
ĮŶĂŶĐŝĂůŝŶĨŽƌŵĂƟŽŶ͘
DŽŶŝƚŽƌƚŚĞĞīĞĐƟǀĞŶĞƐƐŽĨƚŚĞŽŵƉĂŶLJ͛ƐƌŝƐŬŵĂŶĂŐĞŵĞŶƚ
processes and the internal control system.
To assess the independence of the External Auditor and monitor
the performance of Internal and External Auditors.
To recommend to the Board the appointment of External
Auditors.
dŽĞdžĂŵŝŶĞƌĞůĂƚĞĚƉĂƌƚLJƚƌĂŶƐĂĐƟŽŶƐĂƌĞĐĂƌƌŝĞĚŽŶĂŶĂƌŵƐ
length basis.
MEETINGS
dŚĞŽŵŵŝƩĞĞŚĞůĚϬϰŵĞĞƟŶŐƐĚƵƌŝŶŐƚŚĞLJĞĂƌƵŶĚĞƌƌĞǀŝĞǁ͘
dŚĞŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌĂŶĚŚŝĞĨ&ŝŶĂŶĐĞKĸĐĞƌĂƩĞŶĚĞĚ
ƚŚĞƐĞŵĞĞƟŶŐƐďLJŝŶǀŝƚĂƟŽŶ͘
dŚĞĂƩĞŶĚĂŶĐĞŽĨƚŚĞŵĞŵďĞƌƐĂƚƚŚĞƐĞŵĞĞƟŶŐƐŝƐŐŝǀĞŶďĞůŽǁ͘
EĂŵĞDĞĞƟŶŐƩĞŶĚĞĚ
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂͲŚĂŝƌŵĂŶ
ϰ
Mr. Paul Topping
2
Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ ϰ
52
ODEL ANNUAL REPORT
SUMMARY OF ACTIVITIES
FINANCIAL REPORTING
The Committee reviewed the Financial Reporting System to
ĚĞƚĞƌŵŝŶĞƚŚĞĂĐĐƵƌĂĐLJĂŶĚƟŵĞůŝŶĞƐƐŽĨƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ
ƉƵďůŝƐŚĞĚ͘dŚĞŽŵŵŝƩĞĞĂůƐŽƌĞǀŝĞǁĞĚƚŚĞŝŶƚĞƌŝŵĂŶĚLJĞĂƌͲĞŶĚ
&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐƉƌŝŽƌƚŽƉƵďůŝĐĂƟŽŶ͕ŝŶŽƌĚĞƌƚŽĚĞƚĞƌŵŝŶĞ
that the statutory requirements have been complied with and the
ŽŵƉĂŶLJ͛ƐĐĐŽƵŶƟŶŐWŽůŝĐŝĞƐŚĂǀĞďĞĞŶĐŽŶƐŝƐƚĞŶƚůLJĂƉƉůŝĞĚ͘
INTERNAL AUDIT
dŚĞĨƵŶĐƟŽŶƐŽĨƚŚĞƵĚŝƚŽŵŵŝƩĞĞĂƌĞŐŽǀĞƌŶĞĚďLJĂŶƵĚŝƚ
ŽŵŵŝƩĞĞŚĂƌƚĞƌ͕ǁŚŝĐŚŝƐƌĞǀŝĞǁĞĚĂŶŶƵĂůůLJ͘
LJ/ŶǀŝƚĂƟŽŶ
Ms.O.D.Gunewardene - CEO
Dƌ͘ZƵǁĂŶtŝũĞƌĂƚŶĞʹŚŝĞĨ&ŝŶĂŶĐĞKĸĐĞƌ
Mr. Charith Yalagala – External Auditor
FINANCIAL CALENDAR
dŚĞŽŵŵŝƩĞĞŵŽŶŝƚŽƌĞĚƚŚĞĞīĞĐƟǀĞŶĞƐƐŽĨƚŚĞ/ŶƚĞƌŶĂůƵĚŝƚ
&ƵŶĐƟŽŶĂŶĚƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨƚŚĞƌĞĐŽŵŵĞŶĚĂƟŽŶƐŵĂĚĞ
by Internal Audit.
ZĞƐƵůƚƐ
Interim Report for 1st Quarter - 2014
Interim Report for 2nd Quarter - 2014
Interim Report for 3rd Quarter - 2014
Interim Report for 4th Quarter - 2014
ĂƚĞƵƚŚŽƌŝnjĞĚ
6 August 2013
6 November 2013
10 February 2014
29 May 2014
Dividends Date Paid
Final Dividend 2012/2013
Interim Dividend 2013/2014
Final Dividend 2013/2014
19 June 2013
28 November 2013
(Declared on 29 May 2014)
EXTERNAL AUDIT
dŚĞŽŵŵŝƩĞĞŵĞƚƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐƉƌŝŽƌƚŽĂƉƉƌŽǀŝŶŐƚŚĞ
ŶŶƵĂů&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐƚŽƐĂƟƐĨLJƚŚĂƚƚŚĞLJǁĞƌĞƉƌŽǀŝĚĞĚ
adequate access to information needed for their audit. The
ĐŽŵŵŝƩĞĞĂůƐŽƌĞǀŝĞǁĞĚƚŚĞƐƚĂƚƵƐŽĨƚŚĞŝƌŝŶĚĞƉĞŶĚĞŶĐĞ͘
CONCLUSION
ĂƐĞĚŽŶƚŚĞƌĞǀŝĞǁŽĨƌĞƉŽƌƚƐƐƵďŵŝƩĞĚďLJƚŚĞdžƚĞƌŶĂůĂŶĚ
/ŶƚĞƌŶĂůƵĚŝƚŽƌƐ͕ƚŚĞŝŶĨŽƌŵĂƟŽŶŽďƚĂŝŶĞĚĨƌŽŵŵĂŶĂŐĞŵĞŶƚ
ƚŚĞŽŵŵŝƩĞĞŚĂǀŝŶŐĞdžĂŵŝŶĞĚƚŚĞĂĚĞƋƵĂĐLJĂŶĚĞīĞĐƟǀĞŶĞƐƐ
of the internal controls which have been designed to provide a
reasonable but not absolute assurance to Directors that the assets
ŽĨ ƚŚĞ ĐŽŵƉĂŶLJ ĂƌĞ ƐĂĨĞŐƵĂƌĚĞĚ͕ ŝƐ ƐĂƟƐĮĞĚ ƚŚĂƚ ƚŚĞ ĮŶĂŶĐŝĂů
ƉŽƐŝƟŽŶŽĨƚŚĞĐŽŵƉĂŶLJŝƐƌĞŐƵůĂƌůLJŵŽŶŝƚŽƌĞĚĂŶĚƚŚĂƚƐƚĞƉƐ
ĂƌĞďĞŝŶŐƚĂŬĞŶƚŽĐŽŶƟŶƵŽƵƐůLJŝŵƉƌŽǀĞƚŚĞĐŽŶƚƌŽůĞŶǀŝƌŽŶŵĞŶƚ
maintained within the Company.
dŚĞ ƵĚŝƚ ŽŵŵŝƩĞĞ ĚĞƚĞƌŵŝŶĞĚ ƚŚĂƚ DĞƐƐƌƐ ƌŶƐƚ Θ zŽƵŶŐ
ĂƌĞŝŶĚĞƉĞŶĚĞŶƚŽŶƚŚĞďĂƐŝƐƚŚĂƚƚŚĞLJĚŽŶŽƚƉĂƌƟĐŝƉĂƚĞŝŶĂŶLJ
ŵĂŶĂŐĞŵĞŶƚ ĂĐƟǀŝƚLJ ŽĨ ƚŚĞ ĐŽŵƉĂŶLJ ĂŶĚ ĚŽ ŶŽƚ ƉƌŽǀŝĚĞ ĂŶLJ
non-audit services to the company and recommended to the
Board of Directors that Messrs Ernst & Young be reappointed as
ƐƚĂƚƵƚŽƌLJƵĚŝƚŽƌƐĨŽƌƚŚĞĮŶĂŶĐŝĂůLJĞĂƌĞŶĚŝŶŐϯϭƐƚDĂƌĐŚ͕ϮϬϭϱ͕
subject to approval by the Shareholders at the forthcoming Annual
'ĞŶĞƌĂůDĞĞƟŶŐ͘
^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ
ŚĂŝƌŵĂŶʹƵĚŝƚŽŵŵŝƩĞĞ
29 May 2014.
4
ϰ
1
ODEL ANNUAL REPORT
53
INCOME STATEMENT
C om pany
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF ODEL PLC
For the year ended 31st March
Note
Revenue
REPORT ON THE FINANCIAL STATEMENTS
tĞŚĂǀĞĂƵĚŝƚĞĚƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨKĚĞůW>;͞ŽŵƉĂŶLJ͟Ϳ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ
ŽŵƉĂŶLJĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐ;͞'ƌŽƵƉ͟ͿǁŚŝĐŚĐŽŵƉƌŝƐĞƚŚĞƐƚĂƚĞŵĞŶƚƐŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƐĂƚϯϭDĂƌĐŚϮϬϭϰ͕ĂŶĚƚŚĞŝŶĐŽŵĞ
ƐƚĂƚĞŵĞŶƚƐ͕ƐƚĂƚĞŵĞŶƚƐŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͕ƐƚĂƚĞŵĞŶƚƐŽĨĐŚĂŶŐĞƐŝŶĞƋƵŝƚLJĂŶĚƐƚĂƚĞŵĞŶƚƐŽĨĐĂƐŚŇŽǁƐĨŽƌƚŚĞLJĞĂƌƚŚĞŶ
ĞŶĚĞĚ͕ĂŶĚĂƐƵŵŵĂƌLJŽĨƐŝŐŶŝĮĐĂŶƚĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂŶĚŽƚŚĞƌĞdžƉůĂŶĂƚŽƌLJŶŽƚĞƐƐĞƚŽƵƚŽŶƉĂŐĞƐϱϱƚŽϵϬŽĨƚŚĞĂŶŶƵĂůƌĞƉŽƌƚ͘
C o s t o f s a le s
G r o s s p ro f i t
DĂŶĂŐĞŵĞŶƚ͛ƐƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ
O th e r O p e ra t in g in c o m e
DĂŶĂŐĞŵĞŶƚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƟŽŶĂŶĚĨĂŝƌƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ƌŝ>ĂŶŬĂ
ĐĐŽƵŶƟŶŐ ^ƚĂŶĚĂƌĚƐ͘ dŚŝƐ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŝŶĐůƵĚĞƐ͗ ĚĞƐŝŐŶŝŶŐ͕ ŝŵƉůĞŵĞŶƟŶŐ ĂŶĚ ŵĂŝŶƚĂŝŶŝŶŐ ŝŶƚĞƌŶĂů ĐŽŶƚƌŽů ƌĞůĞǀĂŶƚ ƚŽ ƚŚĞ
ƉƌĞƉĂƌĂƟŽŶĂŶĚĨĂŝƌƉƌĞƐĞŶƚĂƟŽŶŽĨĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƚŚĂƚĂƌĞĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͖
ƐĞůĞĐƟŶŐĂŶĚĂƉƉůLJŝŶŐĂƉƉƌŽƉƌŝĂƚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐ͖ĂŶĚŵĂŬŝŶŐĂĐĐŽƵŶƟŶŐĞƐƟŵĂƚĞƐƚŚĂƚĂƌĞƌĞĂƐŽŶĂďůĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͘
D is tr ib u t io n e x p e n s e s
^ĐŽƉĞŽĨĂƵĚŝƚĂŶĚďĂƐŝƐŽĨŽƉŝŶŝŽŶ
KƵƌƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽĞdžƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐďĂƐĞĚŽŶŽƵƌĂƵĚŝƚ͘tĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞ
ǁŝƚŚ^ƌŝ>ĂŶŬĂƵĚŝƟŶŐ^ƚĂŶĚĂƌĚƐ͘dŚŽƐĞƐƚĂŶĚĂƌĚƐƌĞƋƵŝƌĞƚŚĂƚǁĞƉůĂŶĂŶĚƉĞƌĨŽƌŵƚŚĞĂƵĚŝƚƚŽŽďƚĂŝŶƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞ
ǁŚĞƚŚĞƌƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͘
ŶĂƵĚŝƚŝŶĐůƵĚĞƐĞdžĂŵŝŶŝŶŐ͕ŽŶĂƚĞƐƚďĂƐŝƐ͕ĞǀŝĚĞŶĐĞƐƵƉƉŽƌƟŶŐƚŚĞĂŵŽƵŶƚƐĂŶĚĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘Ŷ
ĂƵĚŝƚĂůƐŽŝŶĐůƵĚĞƐĂƐƐĞƐƐŝŶŐƚŚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐƵƐĞĚĂŶĚƐŝŐŶŝĮĐĂŶƚĞƐƟŵĂƚĞƐŵĂĚĞďLJŵĂŶĂŐĞŵĞŶƚ͕ĂƐǁĞůůĂƐĞǀĂůƵĂƟŶŐ
ƚŚĞŽǀĞƌĂůůĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƉƌĞƐĞŶƚĂƟŽŶ͘
tĞŚĂǀĞŽďƚĂŝŶĞĚĂůůƚŚĞŝŶĨŽƌŵĂƟŽŶĂŶĚĞdžƉůĂŶĂƟŽŶƐǁŚŝĐŚƚŽƚŚĞďĞƐƚŽĨŽƵƌŬŶŽǁůĞĚŐĞĂŶĚďĞůŝĞĨǁĞƌĞŶĞĐĞƐƐĂƌLJĨŽƌƚŚĞ
purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion.
3.
4.
A d m in is tr a tiv e e x p e n s e s
O p e r a tin g P r o fit
F in a n c e C o s t s
5.
F in a n c e in c o m e
6.
P ro f it b e fo r e ta x
G roup
2014
2013
2014
2013
LKR
LKR
LKR
LKR
4 , 5 9 1 ,7 1 2 ,0 9 6
4 ,5 3 2 ,9 7 0 ,7 6 5
4 , 5 9 5 ,0 5 3 , 6 2 2
4 ,5 3 3 ,6 7 6 ,9 9 9
( 2 ,8 3 2 , 6 8 2 ,0 1 5 )
( 2 , 7 9 9 ,7 7 6 ,7 5 7 )
( 2 , 8 3 1 ,7 2 7 ,8 1 6 )
( 2 ,7 9 8 , 2 0 2 ,8 1 2 )
1 , 7 5 9 , 0 3 0 ,0 8 1
1 , 7 3 3 ,1 9 4 ,0 0 8
1 ,7 6 3 ,3 2 5 ,8 0 6
1 , 7 3 5 ,4 7 4 ,1 8 7
3 2 7 , 9 9 9 ,7 2 5
1 5 ,7 1 0 ,4 2 3
225,309,032
1 9 ,0 2 7 ,2 1 3
(259,957,416)
( 2 3 1 , 3 6 7 ,2 7 8 )
( 2 5 9 , 9 7 7 ,9 5 6 )
( 2 3 1 ,5 1 0 ,0 1 6 )
(1 , 4 7 2 ,5 9 4 , 9 3 4 )
( 1 ,2 6 3 ,3 2 9 ,6 0 3 )
( 1 , 3 9 6 , 4 8 8 ,0 1 6 )
( 1 , 2 1 4 ,3 7 2 , 1 8 8 )
3 5 4 ,4 7 7 , 4 5 6
2 5 4 , 2 0 7 ,5 5 1
3 3 2 ,1 6 8 , 8 6 6
3 0 8 ,6 1 9 ,1 9 6
(1 2 0 ,1 1 8 ,8 1 2 )
( 1 6 0 ,8 8 2 ,2 5 5 )
( 1 2 0 , 1 1 8 ,8 1 2 )
( 1 6 0 , 8 8 2 ,2 5 5 )
4 ,8 1 2 , 8 1 3
83,934,478
4 ,8 1 2 , 8 1 3
83,934,478
2 3 9 , 1 7 1 ,4 5 7
1 7 7 , 2 5 9 ,7 7 4
2 1 6 ,8 6 2 ,8 6 8
2 3 1 ,6 7 1 , 4 1 9
2 ,1 8 7 ,0 0 8
(64,903,823)
(2 4 ,3 0 9 ,5 0 6 )
( 7 4 ,3 4 9 , 2 0 6 )
2 4 1 ,35 8 ,4 6 6
1 1 2 , 3 5 5 ,9 5 1
1 9 2 ,5 5 3 , 3 6 1
1 5 7 ,3 2 2 ,2 1 3
KƉŝŶŝŽŶ
/ŶŽƵƌŽƉŝŶŝŽŶ͕ƐŽĨĂƌĂƐĂƉƉĞĂƌƐĨƌŽŵŽƵƌĞdžĂŵŝŶĂƟŽŶ͕ƚŚĞŽŵƉĂŶLJŵĂŝŶƚĂŝŶĞĚƉƌŽƉĞƌĂĐĐŽƵŶƟŶŐƌĞĐŽƌĚƐĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϭ
DĂƌĐŚϮϬϭϰĂŶĚƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŐŝǀĞĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞŽŵƉĂŶLJ͛ƐĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƐĂƚϯϭDĂƌĐŚϮϬϭϰĂŶĚŝƚƐ
ĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĂŶĚĐĂƐŚŇŽǁƐĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ƌŝ>ĂŶŬĂĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ͘
/ŶŽƵƌŽƉŝŶŝŽŶ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŐŝǀĞĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƐĂƚϯϭDĂƌĐŚϮϬϭϰĂŶĚƚŚĞ
ĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĂŶĚĐĂƐŚŇŽǁƐĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ƌŝ>ĂŶŬĂĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ͕ŽĨƚŚĞŽŵƉĂŶLJ
and its subsidiaries dealt with thereby, so far as concerns the shareholders of the Company.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In c o m e ta x e x p e n s e
8.
P r o fit fo r th e y e a r
Attributable to:
Owners of the parent
dŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂůƐŽĐŽŵƉůLJǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ^ĞĐƟŽŶƐϭϱϭ;ϮͿĂŶĚϭϱϯ;ϮͿƚŽϭϱϯ;ϳͿŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚEŽ͘
07 of 2007.
Earning per share
24.
0 .8 9
0.63
192,553,361
157,322,213
192,553,361
1 5 7 ,3 2 2 ,2 13
0.71
0.88
30 May 2014
Colombo
The accounting policies and notes on page 60 through 90 form an integral part of the financial statements.
54
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
55
STATEMENT OF COMPREHENSIVE INCOME
STATEMENT OF FINANCIAL POSITION
As at 31 March 2014
For the year ended 31st March
Com pany
&ŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϭƐƚDĂƌĐŚ
76,139,410
2014
2013
2014
2013
LKR
LKR
LKR
LKR
241,358,466
112,355,951
192,553,361
157,322,213
(8,505,267) 477,158
(10,167,680)
2,126,559
Note
WƌŽĮƚĨŽƌƚŚĞLJĞĂƌ
3,092,579,872
G ro u p
Other comprehensive income
A c ƚ u Ă r iĂ lg Ă in s Ă n d (lo s s Ğ s )o n
d Ğ Ĩin Ğ d b Ğ n Ğ Ĩ iƚ p lĂ n s
/ŶĐŽŵĞƚĂdžĞīĞĐƚ
R Ğ v Ă lu Ă ƚ io n o Ĩ lĂ n d Ă n d b u ild in g s
18. 2,381,475
-
2,846,950
-
(6,123,792)
477,158
(7,320,730)
2,126,559
507,514,023
750,152,302
4,691,202
4,691,202
-
512,205,225
-
754,843,504
(6,123,792)
512,682,383
(7,320,730)
756,970,063
235, 234, 674
625,038,334
185,232,631
914,292,276
235,234,674
625,038,334
9.
/ŶĐŽŵĞƚĂdžĞīĞĐƚ
O ƚŚ Ğ r c o m p r Ğ Ś Ğ n s iv Ğ in c o m Ğ /
(lo s s ) Ĩ o r ƚ Ś Ğ LJ Ğ Ă r ,n Ğ ƚ o Ĩƚ Ă dž
Total comprehensive
income for the year , net of tax
Attributable to:
E q u iƚ LJ Ś o ld Ğ r s o Ĩƚ Ś Ğ p Ă r Ğ n ƚ
185,232,631 914,292,276
6,468,137,130
6,031,086,118
6,970,804,143
6,414,626,917
dŚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂŶĚŶŽƚĞƐŽŶƉĂŐĞϲϬƚŚƌŽƵŐŚϵϬĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
dŚĞƐĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐĂƌĞŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚEŽ͘ϬϳŽĨϮϬϬϳ
(Sgd)
R. Wijeratne
Chief Finance Officer
dŚĞŽĂƌĚŽĨƌĞĐƚŽƌƐŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƟŽŶĂŶĚƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞƐĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͘^ŝŐŶĞĚĨŽƌĂŶĚŽŶďĞŚĂůĨŽĨƚŚĞŽĂƌĚďLJ͖
(Sgd)
R. H. Gunewardene
Chairman
(Sgd)
O.D . Gunewardene
Director/CEO
dŚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂŶĚŶŽƚĞƐŽŶƉĂŐĞϲϬƚŚƌŽƵŐŚϵϬĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
29
56
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
57
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASH FLOWS
Company
Company
As at 01 April 2012
Revaluation
Stated
Retained
Total
Reserve
Capital
Earnings
Equity
LKR
LKR
LKR
LKR
442, 768, 163
251, 925, 000
746, 481, 250
For the year ended 31st March
Other comprehensive income
-
-
512,205,225
954,973,388
Right issue
-
251,925,000
112,355,951
1,441,174,413
112,355,951
(18,363,417)
(18,363,417)
Dividends
-
-
(72,475,000)
(72,475,000)
-
1,574,772
2,795,513,620
770, 050, 714
As at 01 April 2013
953, 398, 616
2,795,513,620
770, 050, 714
4,518,962,951
4,518,962,951
Net profit for the year
-
-
241,358,466
241,358,466
Other comprehensive income
-
-
(6,123,792)
(6,123,792)
953,398,616
Dividends Paid
ZĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐs
As at 31 March 2014
(1,108,580)
952, 290, 037
-
(59,868,475)
-
1,108,580
2,795,513,620
Capital
Earnings
Equity
LKR
LKR
LKR
LKR
570, 415, 036
251, 925, 000
754,843,505
-
(220,717,726)
15
Lease interest
5.
4.
(7,011,024)
1, 318, 247, 517
(72,475,000)
2,543,588,620
(18,363,417)
-
5,093,707,139
192,553,361
Other comprehensive income
-
-
(7,320,730)
(7,320,730)
(7,689,814)
1, 310, 557, 703
-
(59,868,475)
-
7,689,814
2, 795, 513, 620
1, 112, 999, 973
-
-
224,196
372,105
224,196
8,988,907
7,724,659
10,130,288
9,680,208
154,963,759
348,150,814
249,984,229
425,447,384
(124,896,511)
372,105
-
-
(2,001,668,459)
(128,742,320)
(Decrease)/Increase in dues to related parties
9,040,470
4,001,223
(Decrease)/Increase in deferred liability
ĂƐŚŐĞŶĞƌĂƚĞĚĨƌŽŵŽƉĞƌĂƟŽŶƐ
61,718,647
111,701,985
14,217,688
6,771,455
-
-
162,312,750
(2,001,668,459)
-
-
43,772,880
97,533,672
4,001,223
14,217,688
(65,292,713)
(1,623,540,286)
237,881,617
(1,582,594,771)
(160,510,150)
Finance costs paid
5.
(119,894,616)
(160,510,150)
(119,894,616)
Defined benefit plan costs paid
18
(1,778,364)
(4,149,774)
(2,175,102)
(4,229,825)
(38,859,639)
(31,834,292)
(61,875,953)
(36,450,565)
(225,825,331)
(1,820,034,502)
53,935,947
(1,783,785,311)
(269,892,012)
(56,714,938)
Acquisition of property, plant & equipment
9.
Investment in equity shares of subsidiaries
11.
-
(10)
-
Acquisition of intangible assets
10.
Dividend received
4.
107,998,683
Finance income
6.
4,812,813
300,000
(156,780,516)
(433,069,954)
(7,269,082)
-
83,934,478
7,558,018
34,777,548
(88,412,878)
(5,473,448)
-
4,812,813
83,934,478
300,000
7,653,692
(435,226,223)
(2,298,156)
CASH FLOWS FROM / (USED IN)
FINANCING ACTIVITIES
Repayment of interest bearing borrowings
17.1 (1,838,580,027)
EĞƚƉƌŽĐĞĞĚƐĨƌŽŵƌŝŐŚƚŝƐƐƵĞ
-
(946,924,330)
2,525,225,203
(1,838,580,027)
-
(946,924,330)
2,525,225,203
5,093,707,139
979, 946, 003
1,165,178,634
2,937,444
162,312,750
2,640,956,936
2,795,513,620
21,621,262
Decrease/(Increase) in other current financial assets
1,063,773,395
192,553,361
1,318,247,517
-
(19,030,822)
(Decrease)/Increase in trade and other payables
(6,700,000)
1,000,000
(39,634,358)
EĞƚĐĂƐŚŇŽǁƐĨƌŽŵͬ;ƵƐĞĚŝŶͿ
ŝŶǀĞƐƟŶŐĂĐƟǀŝƟĞƐ
2, 795, 513, 620
(6,247,192)
(220,717,726)
Decrease/(Increase) in dues from related parties
Lease rental paid
1, 318, 247, 517
(6,700,000)
10,913,123
3,040,638
(89,779,669)
Proceed from disposal of fixed assets
979, 946, 003
(6,294,643)
(132,409,797)
756,970,064
2, 795, 513, 620
(83,934,478)
-
11,393,864
157,322,213
7,011,024
(4,812,813)
(150,024,003)
2,126,559
(18,363,417)
(83,934,478)
(89,125,950)
157,322,213
-
160,510,150
(138,108,287)
Decrease/(Increase) in inventories
-
-
119,894,616
Decrease/(Increase) in trade and other receivables
-
2,543,588,620
7,775,289
160,510,150
(107,998,683)
18.1
KƉĞƌĂƟŶŐƉƌŽĮƚďĞĨŽƌĞ
ǁŽƌŬŝŶŐĐĂƉŝƚĂůĐŚĂŶŐĞƐ
1,726,664,659
-
As at 31 March 2014
3,040,638
Impairement of receivables
904,324,623
-
Dividends
4.
11.
Provision for defined benefit plans
10,655,944
10,913,123
Impairement of investment
Dividend income
-
CASH FLOWS FROM / (USED IN)
INVESTING ACTIVITIES
Net profit for the year
ZĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐs
(4,812,813)
1,460,606
(72,475,000)
101,406,760
6.
1,460,606
-
114,706,218
-
Impairment of property plant and equipment
1,725,204,053
251,925,000
84,362,680
Finance income
902, 864, 017
251,925,000
95,551,905
119,894,616
Income tax paid/Dividend Tax Paid
Reserve
Right Issue
As at 01 April 2013
9
EĞƚĐĂƐŚĨƌŽŵͬ;ƵƐĞĚŝŶͿŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐ
-
As at 31 March 2013
4,694,329,150
Total
1,325,258,541
Cost of Right Issue
-
Retained
Dividends
ZĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐs
(59,868,475)
Stated
570,415,036
Other comprehensive income
946, 525, 493
4,754,197,624
Revaluation
ŽŶƐŽůŝĚĂƟŽŶĂĚũƵƐƚŵĞŶƚƐ
Net profit for the year
1,005,285,388
Attributable to equity holders of the parent
Group
As at 01 April 2012
2,795,513,620
231,671,419
5.
Income on investment
-
216,862,868
Finance costs
2,543,588,620
953, 398, 616
2013
LKR
177,259,774
10.
Profit on disposal of property, plant & equipment
As at 31 March 2013
2014
14
LKR
239,171,457
Intangible assets amortization
2,066,212,747
-
(1,574,772)
Depreciation
859,314,359
Right issue expenses
ZĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐs
EĞƚƉƌŽĮƚďĞĨŽƌĞ/ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞ
512,682,383
-
2013
LKR
Adjustments for
477,158
2,543,588,620
14
201
4
LKR
CASH FLOWS FROM / (USED IN)
OPERATING ACTIVITIES
-
Net profit for the year
Note
Group
5,278,939,771
(59,868,475)
5,219,071,296
Proceeds from interest bearing borrowings
17.1
(1,441,349)
(1,219,603)
(1,441,349)
(1,219,603)
2,212,560,459
729,023,836
2,212,560,459
729,023,836
Dividends paid
(59,868,475)
(72,475,000)
(59,868,475)
(72,475,000)
EĞƚĐĂƐŚŇŽǁƐĨƌŽŵͬ;ƵƐĞĚŝŶͿ
ĮŶĂŶĐŝŶŐĂĐƟǀŝƟĞƐ
312,670,608
2,233,630,106
312,670,608
2,233,630,106
EĞƚŝŶĐƌĞĂƐĞͬ;ĚĞĐƌĞĂƐĞͿŝŶĐĂƐŚĂŶĚ
ĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ
(69,935,239)
448,373,152
(68,619,668))
447,546,639
17,911,577
(430,461,573)
19,140,868
(428,405,770)
(52,023,662)
17, 911, 579
(49,478,800)
19,140,869
ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚƚŚĞ
ďĞŐŝŶŶŝŶŐŽĨƚŚĞƉĞƌŝŽĚ
ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚƚŚĞĞŶĚŽĨƚŚĞƉĞƌŝŽĚ
21
dŚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂŶĚŶŽƚĞƐŽŶƉĂŐĞϲϬƚŚƌŽƵŐŚϵϬĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
58
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
59
1. CORPORATE INFORMATION
1.1 GENERAL
Odel PLC is a limited liability company incorporated and domiciled in Sri Lanka whose shares are publicly traded in the
ŽůŽŵďŽ^ƚŽĐŬdžĐŚĂŶŐĞ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨKĚĞůW>ŝƐ
ůŽĐĂƚĞĚĂƚEŽϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝLJĂ͘KĚĞůW>ŝƐƚŚĞ
holding company of the Group and therefore, it does not have
ĂŶŝĚĞŶƟĮĂďůĞŝŵŵĞĚŝĂƚĞŽƌƵůƟŵĂƚĞƉĂƌĞŶƚŽĨŝƚƐŽǁŶĂŶĚƚŚĞ
details of subsidiary companies are as follows.
SUBSIDIARIES
Odel Apparels (Pvt) Ltd
Odel Apparels (Pvt) Ltd is a limited liability company incorpoƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨƚŚĞ
ŽŵƉĂŶLJŝƐůŽĐĂƚĞĚĂƚEŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝLJĂĂŶĚƚŚĞ
ƉƌŝŶĐŝƉĂůƉůĂĐĞŽĨďƵƐŝŶĞƐƐŝƐƐŝƚƵĂƚĞĚĂƚEŽ͘ϳϭͬϯ͕<ĂŵĂƚĂǁĂƩĞ
Road, Rajagiriya.
KĚĞůWƌŽƉĞƌƟĞƐ;WǀƚͿ>ƚĚ͕͘
KĚĞů WƌŽƉĞƌƟĞƐ ;WǀƚͿ >ŝŵŝƚĞĚ ŝƐ Ă ůŝŵŝƚĞĚ ůŝĂďŝůŝƚLJ ĐŽŵƉĂŶLJ
ŝŶĐŽƌƉŽƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞ
and principle place of business of the Company is located at No.
ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚZĂũĂŐŝƌŝLJĂ͘
Odel Lanka (Pvt) Ltd.
Odel Lanka (Pvt) Limited is a limited liability company incorpoƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨƚŚĞ
ŽŵƉĂŶLJŝƐůŽĐĂƚĞĚĂƚEŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝLJĂĂŶĚƚŚĞ
ƉƌŝŶĐŝƉĂůƉůĂĐĞŽĨďƵƐŝŶĞƐƐŝƐƐŝƚƵĂƚĞĚĂƚϮϳϭ͕<ĂĚƵǁĞůĂZŽĂĚ͕
dŚĂůĂŶŐĂŵĂ͕ĂƩĂƌĂŵƵůůĂ͘
KĚĞů/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐLJ^ĞƌǀŝĐĞƐ;WǀƚͿ>ƚĚ
KĚĞů/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐLJ^ĞƌǀŝĐĞƐ;WǀƚͿ>ƚĚŝƐĂůŝŵŝƚĞĚůŝability company incorporated and domiciled in Sri Lanka. The
ƌĞŐŝƐƚĞƌĞĚŽĸĐĞĂŶĚƉƌŝŶĐŝƉůĞƉůĂĐĞŽĨďƵƐŝŶĞƐƐŽĨƚŚĞŽŵƉĂŶLJ
ŝƐůŽĐĂƚĞĚĂƚEŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚZĂũĂŐŝƌŝLJĂ͘
^>/ŶƚĞƌŶĂƟŽŶĂů;WǀƚͿ>ƚĚ
^>/ŶƚĞƌŶĂƟŽŶĂů;WǀƚͿ>ƚĚŝƐĂůŝŵŝƚĞĚůŝĂďŝůŝƚLJĐŽŵƉĂŶLJŝŶĐŽƌƉŽƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨƚŚĞ
Company is located at No.38 Dickmens Road, Colombo 05, and
the principal place of business is situated at P.O.Box 5, Export
WƌŽĐĞƐƐŝŶŐŽŶĞ͕<ĂƚƵŶĂLJĂŬĞ͘
'ƌĞĞŶĮĞůĚdƌĂĚŝŶŐ;WǀƚͿ>ƚĚ
'ƌĞĞŶĮĞůĚ dƌĂĚŝŶŐ ;WǀƚͿ >ƚĚ ŝƐ Ă ůŝŵŝƚĞĚ ůŝĂďŝůŝƚLJ ĐŽŵƉĂŶLJ ŝŶĐŽƌƉŽƌĂƚĞĚ ĂŶĚ ĚŽŵŝĐŝůĞĚ ŝŶ ^ƌŝ >ĂŶŬĂ͘ dŚĞ ƌĞŐŝƐƚĞƌĞĚ ŽĸĐĞ
ĂŶĚƚŚĞƉƌŝŶĐŝƉůĞƉůĂĐĞŽĨďƵƐŝŶĞƐƐŝƐƐŝƚƵĂƚĞĚĂƚϰϳϱͬϯϮ͕<ŽƩĞ
Road, Rajagiriya.
KĚĞůWƌŽƉĞƌƟĞƐ;WǀƚͿ>ƚĚ
ƵƌŝŶŐƚŚĞLJĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶLJǁĞƌĞ
ƚŽĐĂƌƌLJŽƵƚƌĞĂůĞƐƚĂƚĞĂĐƟǀŝƟĞƐŝŶƌĞůĂƟŽŶƚŽƌĞƚĂŝůďƵƐŝŶĞƐƐ
Odel Lanka (Pvt) Ltd
WƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶLJĂƌĞƚŽŽƉĞƌĂƚĞĂƐŚŽƉƉŝŶŐ
ĐŽŵƉůĞdžͬ ƌĞƚĂŝů ŵĂůů ĂŶĚ ƚŚĞ ŽƉĞƌĂƟŽŶƐ ŚĂǀĞ ŶŽƚ LJĞƚ ĐŽŵmenced.
KĚĞů/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐLJ^ĞƌǀŝĐĞƐ;WǀƚͿ>ƚĚ
ƵƌŝŶŐƚŚĞLJĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶLJǁĞƌĞƚŽ
ƉƌŽǀŝĚĞŝŶĨŽƌŵĂƟŽŶƚĞĐŚŶŽůŽŐLJŝŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚŵĂŝŶƚĞŶĂŶĐĞ
services for the group companies.
^>/ŶƚĞƌŶĂƟŽŶĂů;WǀƚͿ>ƚĚ
ƵƌŝŶŐƚŚĞLJĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶLJǁĞƌĞ
import and export of fashion accessories.
'ƌĞĞŶĮĞůĚdƌĂĚŝŶŐ;WǀƚͿ>ƚĚ
WƌŝŶĐŝƉĂůĂĐƟǀŝƚLJŽĨƚŚĞŽŵƉĂŶLJǁĂƐƚŽƚƌĂĚĞƌĞƚĂŝůĨĂƐŚŝŽŶ
ŝƚĞŵƐ͕ĂŶĚƚŚĞŽƉĞƌĂƟŽŶƐŚĂǀĞŶŽƚLJĞƚĐŽŵŵĞŶĐĞĚ͘
1.3 Date of Authorization for issue
dŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨKĚĞůW>ĂŶĚ/ƚƐ^ƵďƐŝĚŝĂƌŝĞƐ ĨŽƌ ƚŚĞ LJĞĂƌ ĞŶĚĞĚ ϯϭ DĂƌĐŚ ϮϬϭϰ ǁĞƌĞ ĂƵƚŚŽƌŝnjĞĚ
ĨŽƌ ŝƐƐƵĞ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ Ă ƌĞƐŽůƵƟŽŶ ŽĨ ƚŚĞ ĚŝƌĞĐƚŽƌƐ ŽŶ
29May 2014.
2. STATEMENT OF COMPLIANCE
The Consolidated Financial Statements of the Group (Income
Statement, Statement of Comprehensive Income, Statement of
&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶ͕^ƚĂƚĞŵĞŶƚŽĨŚĂŶŐĞƐŝŶƋƵŝƚLJ͕^ƚĂƚĞŵĞŶƚ
ŽĨĂƐŚ&ůŽǁƐƚŽŐĞƚŚĞƌǁŝƚŚĐĐŽƵŶƟŶŐWŽůŝĐŝĞƐĂŶĚEŽƚĞƐͿĂƐ
at 31 March2014 are prepared in accordance with Sri Lanka
ĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ;^>&Z^ƐͿĂƐůĂŝĚĚŽǁŶďLJƚŚĞ/ŶƐƟƚƵƚĞŽĨ
Chartered Accountants of Sri Lanka.
2.1 BASIS OF PREPARATION AND MEASUREMENT
dŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŚĂǀĞďĞĞŶƉƌĞƉĂƌĞĚŽŶ
a historical cost basis, except for land and buildings and Financial Instruments that have been measured at fair value. The
ƉƌĞƉĂƌĂƟŽŶĂŶĚƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞ
in compliance with the Companies Act No.07 of 2007.
ŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƉƌĞƐĞŶƚĞĚŝŶ^ƌŝ>ĂŶŬĂŶ
Rupees except when otherwise indicated.
1.2 Principal Activities and Nature of Operations
2.1.1 ^ƌŝ>ĂŶŬĂĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐĞīĞĐƟǀĞ
from 01 January 2014
During the year, ƚŚĞ ƉƌŝŶĐŝƉĂů ĂĐƟǀŝƟĞƐ ŽĨ ƚŚĞ ŐƌŽƵƉ ǁĞƌĞ ĂƐ
ĨŽůůŽǁƐ͖
^>&Z^ϵͲ&ŝŶĂŶĐŝĂů/ŶƐƚƌƵŵĞŶƚƐ͗ůĂƐƐŝĮĐĂƟŽŶ
and Measurement
WĂƌĞŶƚŽŵƉĂŶLJ
ƵƌŝŶŐƚŚĞLJĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶLJǁĞƌĞƚŽ
ĐĂƌƌLJŽƵƚĨĂƐŚŝŽŶƌĞƚĂŝůĂĐƟǀŝƟĞƐ͘
^ƵďƐŝĚŝĂƌŝĞƐ
^>&Z^ϵ͕ĂƐŝƐƐƵĞĚƌĞŇĞĐƚƐƚŚĞĮƌƐƚƉŚĂƐĞŽĨǁŽƌŬŽŶƌĞƉůĂĐĞŵĞŶƚŽĨ><^ϯϵĂŶĚĂƉƉůŝĞƐƚŽĐůĂƐƐŝĮĐĂƟŽŶĂŶĚŵĞĂƐƵƌĞŵĞŶƚ
ŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƐĚĞĮŶĞĚŝŶ><^ϯϵ͘^>&Z^ϵ͕
ǁĂƐŝƐƐƵĞĚŝŶϮϬϭϮĂŶĚĞīĞĐƟǀĞĚĂƚĞŽĨƚŚŝƐƐƚĂŶĚĂƌĚŚĂƐďĞĞŶ
ĚĞĨĞƌƌĞĚ ƵŶƟů ƚŚĞ ŶĞǁ ĞīĞĐƟǀĞ ĚĂƚĞ ŝƐ ŶŽƟĮĞĚ͘ WĞŶĚŝŶŐ ƚŚĞ
ĐŽŵƉůĞƟŽŶŽĨĨƵůůƐƚƵĚLJŽĨƚŚŝƐƐƚĂŶĚĂƌĚ͕ƚŚĞĮŶĂŶĐŝĂůŝŵƉĂĐƚŝƐ
ŶŽƚLJĞƚŬŶŽǁŶĂŶĚƌĞĂƐŽŶĂďůLJĞƐƟŵĂďůĞ͘
KĚĞůƉƉĂƌĞůƐ;WǀƚͿ>ƚĚ͘
ƵƌŝŶŐƚŚĞLJĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶLJǁĞƌĞƚŽ
manufacture and supply of the Garments to the group.
^>&Z^ϭϬͲŽŶƐŽůŝĚĂƚĞĚ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ
^>&Z^ ϭϬ ƌĞƉůĂĐĞƐ ƚŚĞ ƉŽƌƟŽŶ ŽĨ ><^ Ϯϳ ŽŶƐŽůŝĚĂƚĞĚ ĂŶĚ
^ĞƉĂƌĂƚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐƚŚĂƚĂĚĚƌĞƐƐĞƐƚŚĞĂĐĐŽƵŶƟŶŐĨŽƌ
ĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘/ƚĂůƐŽĂĚĚƌĞƐƐĞƐƚŚĞŝƐƐƵĞƐ
ƌĂŝƐĞĚŝŶ^/ͲϭϮŽŶƐŽůŝĚĂƟŽŶ
^>&Z^ϭϭ:ŽŝŶƚƌƌĂŶŐĞŵĞŶƚƐ
^>&Z^ϭϭƌĞƉůĂĐĞƐ><^ϯϭ/ŶƚĞƌĞƐƚƐŝŶũŽŝŶƚǀĞŶƚƵƌĞƐĂŶĚ^/Ͳ
ϭϯ:ŽŝŶƚůLJͲĐŽŶƚƌŽůůĞĚŶƟƟĞƐEŽŶͲDĂŶĚĂƚŽƌLJŽŶƚƌŝďƵƟŽŶƐďLJ
sĞŶƚƵƌĞƐ͘^>&Z^ϭϭƌĞŵŽǀĞƐƚŚĞŽƉƟŽŶƚŽĂĐĐŽƵŶƚĨŽƌũŽŝŶƚůLJ
ĐŽŶƚƌŽůůĞĚ ĞŶƟƟĞƐ ;:ƐͿ ƵƐŝŶŐ ƉƌŽƉŽƌƟŽŶĂƚĞ ĐŽŶƐŽůŝĚĂƟŽŶ͘
/ŶƐƚĞĂĚ͕:ƐƚŚĂƚŵĞĞƚƚŚĞĚĞĮŶŝƟŽŶŽĨĂũŽŝŶƚǀĞŶƚƵƌĞŵƵƐƚ
be accounted for using the equity method.
^>&Z^ϭϮŝƐĐůŽƐƵƌĞŽĨ/ŶƚĞƌĞƐƚƐŝŶKƚŚĞƌŶƟƟĞƐ
SLFRS 12 includes all of the disclosures that were previously in
><^ Ϯϳ ƌĞůĂƚĞĚ ƚŽ ĐŽŶƐŽůŝĚĂƚĞĚ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ ĂƐ ǁĞůů
ĂƐĂůůŽĨƚŚĞĚŝƐĐůŽƐƵƌĞƐƚŚĂƚǁĞƌĞƉƌĞǀŝŽƵƐůLJŝŶĐůƵĚĞĚŝŶ><^
ϯϭĂŶĚ><^Ϯϴ͘dŚĞƐĞĚŝƐĐůŽƐƵƌĞƐƌĞůĂƚĞƚŽĂŶĞŶƟƚLJ͛ƐŝŶƚĞƌĞƐƚ
in subsidiaries, joint arrangements, associates and structured
ĞŶƟƟĞƐ͘dŚĞŶƵŵďĞƌŽĨŶĞǁĚŝƐĐůŽƐƵƌĞƐĂƌĞĂůƐŽƌĞƋƵŝƌĞĚ͕ďƵƚ
ŚĂƐŶŽŝŵƉĂĐƚŽŶƚŚĞ'ƌŽƵƉ͛ƐͬŽŵƉĂŶLJ͛ƐĮŶĂŶĐŝĂůƉŽƐŝƟŽŶŽƌ
performance.
^>&Z^ϭϯ&ĂŝƌsĂůƵĞDĞĂƐƵƌĞŵĞŶƚ
SLFRS 13 establishes a single source of guidance under SLFRS for
all fair value measurements. SLFRS 13 does not change when
ĂŶĞŶƟƚLJŝƐƌĞƋƵŝƌĞĚƚŽƵƐĞĨĂŝƌǀĂůƵĞ͕ďƵƚƌĂƚŚĞƌƉƌŽǀŝĚĞƐŐƵŝĚance on how to measure fair value under SLFRS when fair value
ŝƐƌĞƋƵŝƌĞĚŽƌƉĞƌŵŝƩĞĚ͘hƐĞŽĨƉƌŝŶĐŝƉůĞƐŽĨŵĞĂƐƵƌĞŵĞŶƚŝŶ
ƚŚŝƐƐƚĂŶĚĂƌĚƐĂƌĞĐƵƌƌĞŶƚůLJĞŶĐŽƵƌĂŐĞĚ͘WĞŶĚŝŶŐƚŚĞĐŽŵƉůĞƟŽŶ
ŽĨĨƵůůƐƚƵĚLJŽĨƚŚĞƐĞƐƚĂŶĚĂƌĚƐ͕ƚŚĞĮŶĂŶĐŝĂůŝŵƉĂĐƚŝƐŶŽƚLJĞƚ
ŬŶŽǁŶĂŶĚƌĞĂƐŽŶĂďůLJĞƐƟŵĂďůĞ͘
2.2 BASIS OF CONSOLIDATION
dŚĞ ĐŽŶƐŽůŝĚĂƚĞĚ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĐŽŵƉƌŝƐĞ ƚŚĞ ĮŶĂŶĐŝĂů
statements of the Group and its subsidiaries as at 31 March 2014.
^ƵďƐŝĚŝĂƌŝĞƐĂƌĞĨƵůůLJĐŽŶƐŽůŝĚĂƚĞĚĨƌŽŵƚŚĞĚĂƚĞŽĨĂĐƋƵŝƐŝƟŽŶ͕
ďĞŝŶŐƚŚĞĚĂƚĞŽŶǁŚŝĐŚƚŚĞ'ƌŽƵƉŽďƚĂŝŶƐĐŽŶƚƌŽů͕ĂŶĚĐŽŶƟŶƵĞ
ƚŽďĞĐŽŶƐŽůŝĚĂƚĞĚƵŶƟůƚŚĞĚĂƚĞǁŚĞŶƐƵĐŚĐŽŶƚƌŽůĐĞĂƐĞƐ͘dŚĞ
ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽĨ ƚŚĞ ƐƵďƐŝĚŝĂƌŝĞƐ ĂƌĞ ƉƌĞƉĂƌĞĚ ĨŽƌ ƚŚĞ
ƐĂŵĞƌĞƉŽƌƟŶŐƉĞƌŝŽĚĂƐƚŚĞƉĂƌĞŶƚĐŽŵƉĂŶLJ͕ƵƐŝŶŐĐŽŶƐŝƐƚĞŶƚ
ĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐ͘
ůů ŝŶƚƌĂͲŐƌŽƵƉ ďĂůĂŶĐĞƐ͕ ƚƌĂŶƐĂĐƟŽŶƐ͕ ƵŶƌĞĂůŝnjĞĚ ŐĂŝŶƐ ĂŶĚ
ůŽƐƐĞƐ ƌĞƐƵůƟŶŐ ĨƌŽŵ ŝŶƚƌĂͲŐƌŽƵƉ ƚƌĂŶƐĂĐƟŽŶƐ ĂŶĚ ĚŝǀŝĚĞŶĚƐ
are eliminated in full.
A change in the ownership interest of a subsidiary, without a
ůŽƐƐŽĨĐŽŶƚƌŽů͕ŝƐĂĐĐŽƵŶƚĞĚĨŽƌĂƐĂŶĞƋƵŝƚLJƚƌĂŶƐĂĐƟŽŶ͘
ODEL ANNUAL REPORT
dŚĞƉƌĞƉĂƌĂƟŽŶŽĨƚŚĞ'ƌŽƵƉĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ
ƌĞƋƵŝƌĞƐ ŵĂŶĂŐĞŵĞŶƚ ƚŽ ŵĂŬĞ ũƵĚŐŵĞŶƚƐ͕ ĞƐƟŵĂƚĞƐ ĂŶĚ ĂƐƐƵŵƉƟŽŶƐ ƚŚĂƚ ĂīĞĐƚ ƚŚĞ ƌĞƉŽƌƚĞĚ ĂŵŽƵŶƚƐ ŽĨ ƌĞǀĞŶƵĞƐ͕ ĞdžƉĞŶƐĞƐ͕ĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐ͕ĂŶĚƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐĚŝƐĐůŽƐƵƌĞƐ͕
ĂŶĚƚŚĞĚŝƐĐůŽƐƵƌĞŽĨĐŽŶƟŶŐĞŶƚůŝĂďŝůŝƟĞƐ͘hŶĐĞƌƚĂŝŶƚLJĞdžŝƐƚƐĂƚ
ƚŚĞĚĂƚĞŽĨƉƌĞƉĂƌĂƟŽŶ͕ĂďŽƵƚƚŚĞƐĞĂƐƐƵŵƉƟŽŶƐĂŶĚĞƐƟŵĂƚĞƐ
and hence, may result in outcomes that require a material adjustment to the recorded carrying amount of the asset or liability as
ĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞŽƌŝŶĨƵƚƵƌĞƉĞƌŝŽĚƐ͘
JUDGMENTS
/ŶƚŚĞƉƌŽĐĞƐƐŽĨĂƉƉůLJŝŶŐƚŚĞ'ƌŽƵƉ͛ƐĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐ͕ŵĂŶagement has made following judgments which have the most
ƐŝŐŶŝĮĐĂŶƚĞīĞĐƚŽŶƚŚĞĂŵŽƵŶƚƐƌĞĐŽŐŶŝnjĞĚŝŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚ
ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͗
dĂdžŽŶ^>&Z^&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ
dŚĞ 'ƌŽƵƉ ŝƐ ƐƵďũĞĐƚ ƚŽ ŝŶĐŽŵĞ ƚĂdž͘ dŚĞ 'ƌŽƵƉ ƌĞĐŽŐŶŝnjĞĚ
ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ ĨŽƌ ĐƵƌƌĞŶƚ ĂŶĚ ĚĞĨĞƌƌĞĚ ƚĂdžĞƐ ďĂƐĞĚ ŽŶ
ĞƐƟŵĂƚĞƐŽĨǁŚĞƚŚĞƌĂĚĚŝƟŽŶĂůƚĂdžĞƐǁŝůůďĞĚƵĞ͘tŚĞƌĞƚŚĞ
ĮŶĂůƚĂdžŽƵƚĐŽŵĞŽĨƚŚĞƐĞŵĂƩĞƌƐŝƐĚŝīĞƌĞŶƚĨƌŽŵƚŚĞĂŵŽƵŶƚƐ
ƚŚĂƚ ǁĞƌĞ ŝŶŝƟĂůůLJ ƌĞĐŽƌĚĞĚ͕ ƐƵĐŚ ĚŝīĞƌĞŶĐĞƐ ǁŝůů ŝŵƉĂĐƚ ƚŚĞ
income and deferred tax amounts in the period in which the
ĚĞƚĞƌŵŝŶĂƟŽŶŝƐŵĂĚĞ͘
ESTIMATES AND ASSUMPTIONS
The key assumptions concerning the future and other key
ƐŽƵƌĐĞƐ ŽĨ ĞƐƟŵĂƟŽŶ ƵŶĐĞƌƚĂŝŶƚLJ Ăƚ ƚŚĞ ƌĞƉŽƌƟŶŐ ĚĂƚĞ͕ ƚŚĂƚ
ŚĂǀĞĂƐŝŐŶŝĮĐĂŶƚƌŝƐŬŽĨĐĂƵƐŝŶŐĂŵĂƚĞƌŝĂůĂĚũƵƐƚŵĞŶƚƚŽƚŚĞ
ĐĂƌƌLJŝŶŐĂŵŽƵŶƚƐŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐǁŝƚŚŝŶƚŚĞŶĞdžƚĮŶĂŶĐŝĂů
LJĞĂƌ͕ ĂƌĞ ĚĞƐĐƌŝďĞĚ ďĞůŽǁ͘ dŚĞ 'ƌŽƵƉ ďĂƐĞĚ ŝƚƐ ĂƐƐƵŵƉƟŽŶƐ
ĂŶĚĞƐƟŵĂƚĞƐ͕ŽŶƉĂƌĂŵĞƚĞƌƐĂǀĂŝůĂďůĞǁŚĞŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚ
ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐǁĞƌĞƉƌĞƉĂƌĞĚ͘džŝƐƟŶŐĐŝƌĐƵŵƐƚĂŶĐĞƐĂŶĚ
ĂƐƐƵŵƉƟŽŶƐĂďŽƵƚĨƵƚƵƌĞĚĞǀĞůŽƉŵĞŶƚƐ͕ŚŽǁĞǀĞƌ͕ŵĂLJĐŚĂŶŐĞ
due to market changes or circumstances arising beyond the
ĐŽŶƚƌŽůŽĨƚŚĞ'ƌŽƵƉƐƵĐŚĐŚĂŶŐĞƐĂƌĞƌĞŇĞĐƚĞĚŝŶƚŚĞĂƐƐƵŵƉƟŽŶƐǁŚĞŶƚŚĞLJŽĐĐƵƌ͘
/ŵƉĂŝƌŵĞŶƚŽĨŝŶǀĞƐƚŵĞŶƚƐŝŶƐƵďƐŝĚŝĂƌŝĞƐŽƌĮŶĂŶĐŝĂůĂƐƐĞƚƐ
dŚĞ'ƌŽƵƉĂŶĚƚŚĞŽŵƉĂŶLJĨŽůůŽǁƚŚĞŐƵŝĚĂŶĐĞŽĨ><^ϯϲ
ĂŶĚ><^ϯϵŽŶĚĞƚĞƌŵŝŶŝŶŐǁŚĞƚŚĞƌĂŶŝŶǀĞƐƚŵĞŶƚŽƌĂĮŶĂŶĐŝĂů ĂƐƐĞƚ ŝƐ ŝŵƉĂŝƌĞĚ͘ dŚŝƐ ĚĞƚĞƌŵŝŶĂƟŽŶ ƌĞƋƵŝƌĞƐ ƐŝŐŶŝĮĐĂŶƚ
judgement. The Group and the Company evaluate, among
ŽƚŚĞƌĨĂĐƚŽƌƐ͕ƚŚĞĚƵƌĂƟŽŶĂŶĚĞdžƚĞŶƚƚŽǁŚŝĐŚƚŚĞĨĂŝƌǀĂůƵĞ
ŽĨ ĂŶ ŝŶǀĞƐƚŵĞŶƚ Žƌ Ă ĮŶĂŶĐŝĂů ĂƐƐĞƚ ŝƐ ůĞƐƐ ƚŚĂŶ ŝƚƐ ĐŽƐƚ ĂŶĚ
ƚŚĞĮŶĂŶĐŝĂůŚĞĂůƚŚŽĨƚŚĞŶĞĂƌͲƚĞƌŵďƵƐŝŶĞƐƐŽƵƚůŽŽŬĨŽƌƚŚĞ
ŝŶǀĞƐƚŵĞŶƚŽƌĂĮŶĂŶĐŝĂůĂƐƐĞƚ͕ŝŶĐůƵĚŝŶŐĨĂĐƚŽƌƐƐƵĐŚĂƐŝŶĚƵƐƚƌLJ
ĂŶĚƐĞĐƚŽƌƉĞƌĨŽƌŵĂŶĐĞ͕ĐŚĂŶŐĞƐŝŶƚĞĐŚŶŽůŽŐLJĂŶĚŽƉĞƌĂƟŽŶĂů
ĂŶĚĮŶĂŶĐŝŶŐĐĂƐŚŇŽǁƐ͘
ZĞǀĂůƵĂƟŽŶŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚ
If the Group loses control over a subsidiary, it:
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2.3 SIGNIFICANT JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
ĞƌĞĐŽŐŶŝnjĞƐƚŚĞĂƐƐĞƚƐ;ŝŶĐůƵĚŝŶŐŐŽŽĚǁŝůůͿĂŶĚůŝĂďŝůŝƟĞƐ
of the subsidiary
ĞƌĞĐŽŐŶŝnjĞƐƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨĂŶLJŶŽŶͲĐŽŶƚƌŽůůŝŶŐ
interest
ĞƌĞĐŽŐŶŝnjĞƐƚŚĞĐƵŵƵůĂƟǀĞƚƌĂŶƐůĂƟŽŶĚŝīĞƌĞŶĐĞƐ͕ recorded in equity
ZĞĐŽŐŶŝnjĞƐƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶƌĞĐĞŝǀĞĚ
ZĞĐŽŐŶŝnjĞƐƚŚĞĨĂŝƌǀĂůƵĞŽĨĂŶLJŝŶǀĞƐƚŵĞŶƚƌĞƚĂŝŶĞĚ
ZĞĐŽŐŶŝnjĞƐĂŶLJƐƵƌƉůƵƐŽƌĚĞĮĐŝƚŝŶƉƌŽĮƚŽƌůŽƐƐ
ZĞĐůĂƐƐŝĮĞƐƚŚĞƉĂƌĞŶƚ͛ƐƐŚĂƌĞŽĨĐŽŵƉŽŶĞŶƚƐƉƌĞǀŝŽƵƐůLJ
ƌĞĐŽŐŶŝƐĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞƚŽƉƌŽĮƚŽƌ
loss or retained earnings, as appropriate.
The Group measures land and buildings at revalued amounts
ǁŝƚŚĐŚĂŶŐĞƐŝŶĨĂŝƌǀĂůƵĞďĞŝŶŐƌĞĐŽŐŶŝnjĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘dŚĞ'ƌŽƵƉĞŶŐĂŐĞĚĂŶŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĂƟŽŶ
specialist to assess fair value of such assets as at 31 March 2013.
Land and buildings were valued by reference to market-based
ĞǀŝĚĞŶĐĞ͕ƵƐŝŶŐĐŽŵƉĂƌĂďůĞƉƌŝĐĞƐĂĚũƵƐƚĞĚĨŽƌƐƉĞĐŝĮĐŵĂƌŬĞƚ
ĨĂĐƚŽƌƐƐƵĐŚĂƐŶĂƚƵƌĞ͕ůŽĐĂƟŽŶĂŶĚĐŽŶĚŝƟŽŶŽĨƚŚĞƉƌŽƉĞƌƚLJ͘
ODEL ANNUAL REPORT
61
ĞĮŶĞĚĞŶĞĮƚWůĂŶƐʹ'ƌĂƚƵŝƚLJ
dŚĞĐŽƐƚŽĨŐƌĂƚƵŝƚLJŝƐĚĞƚĞƌŵŝŶĞĚƵƐŝŶŐĂĐƚƵĂƌŝĂůǀĂůƵĂƟŽŶƐ͘Ŷ
ĂĐƚƵĂƌŝĂůǀĂůƵĂƟŽŶŝŶǀŽůǀĞƐŵĂŬŝŶŐǀĂƌŝŽƵƐĂƐƐƵŵƉƟŽŶƐǁŚŝĐŚ
ŵĂLJĚŝīĞƌĨƌŽŵĂĐƚƵĂůĚĞǀĞůŽƉŵĞŶƚƐŝŶƚŚĞĨƵƚƵƌĞ͘dŚĞƐĞŝŶĐůƵĚĞ
ƚŚĞĚĞƚĞƌŵŝŶĂƟŽŶŽĨƚŚĞĚŝƐĐŽƵŶƚƌĂƚĞ͕ĨƵƚƵƌĞƐĂůĂƌLJŝŶĐƌĞĂƐĞƐ͕
ƐƚĂīǁŝƚŚĚƌĂǁĂůƐ͕ĂŶĚŵŽƌƚĂůŝƚLJƌĂƚĞƐ͘ƵĞƚŽƚŚĞĐŽŵƉůĞdžŝƚLJ
ŽĨƚŚĞǀĂůƵĂƟŽŶ͖ƚŚĞƵŶĚĞƌůLJŝŶŐĂƐƐƵŵƉƟŽŶƐĂŶĚŝƚƐůŽŶŐͲƚĞƌŵ
ŶĂƚƵƌĞ͕ ƚŚĞ ĚĞĮŶĞĚ ďĞŶĞĮƚ ŽďůŝŐĂƟŽŶ ŝƐ ŚŝŐŚůLJ ƐĞŶƐŝƟǀĞ ƚŽ
ĐŚĂŶŐĞƐŝŶƚŚĞƐĞĂƐƐƵŵƉƟŽŶƐ͘ůůĂƐƐƵŵƉƟŽŶƐĂƌĞƌĞǀŝĞǁĞĚĂƚ
ĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞ͘
/ĨƚŚĞďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶŝƐĂĐŚŝĞǀĞĚŝŶƐƚĂŐĞƐ͕ƚŚĞƉƌĞǀŝŽƵƐůLJ
ŚĞůĚ ĞƋƵŝƚLJ ŝŶƚĞƌĞƐƚ ŝƐ ƌĞŵĞĂƐƵƌĞĚ Ăƚ ŝƚƐ ĂĐƋƵŝƐŝƟŽŶ ĚĂƚĞ ĨĂŝƌ
ǀĂůƵĞĂŶĚĂŶLJƌĞƐƵůƟŶŐŐĂŝŶŽƌůŽƐƐŝƐƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĮƚŽƌůŽƐƐ͘
ŶLJĐŽŶƟŶŐĞŶƚĐŽŶƐŝĚĞƌĂƟŽŶƚŽďĞƚƌĂŶƐĨĞƌƌĞĚďLJƚŚĞĂĐƋƵŝƌĞƌ
ǁŝůůďĞƌĞĐŽŐŶŝƐĞĚĂƚĨĂŝƌǀĂůƵĞĂƚƚŚĞĂĐƋƵŝƐŝƟŽŶĚĂƚĞ͘ŽŶƟŶŐĞŶƚ
ĐŽŶƐŝĚĞƌĂƟŽŶǁŚŝĐŚŝƐĚĞĞŵĞĚƚŽďĞĂŶĂƐƐĞƚŽƌůŝĂďŝůŝƚLJƚŚĂƚŝƐ
ĂĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚĂŶĚǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵ&ŝŶĂŶĐŝĂů
/ŶƐƚƌƵŵĞŶƚƐ͗ZĞĐŽŐŶŝƟŽŶĂŶĚDĞĂƐƵƌĞŵĞŶƚ͕ŝƐŵĞĂƐƵƌĞĚĂƚĨĂŝƌ
ǀĂůƵĞǁŝƚŚĐŚĂŶŐĞƐŝŶĨĂŝƌǀĂůƵĞĞŝƚŚĞƌŝŶƉƌŽĮƚŽƌůŽƐƐŽƌĂƐĂ
ĐŚĂŶŐĞƚŽŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ;K/Ϳ͘/ĨƚŚĞĐŽŶƟŶŐĞŶƚ
ĐŽŶƐŝĚĞƌĂƟŽŶŝƐŶŽƚǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵ͕ŝƚŝƐŵĞĂƐƵƌĞĚ
in accordance with the appropriate SLFRS.
&ĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ
tŚĞŶƚŚĞĨĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐ
ƌĞĐŽƌĚĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĐĂŶŶŽƚďĞĚĞƌŝǀĞĚ
ĨƌŽŵĂĐƟǀĞŵĂƌŬĞƚƐ͕ƚŚĞŝƌĨĂŝƌǀĂůƵĞŝƐĚĞƚĞƌŵŝŶĞĚƵƐŝŶŐǀĂůƵĂƟŽŶƚĞĐŚŶŝƋƵĞƐŝŶĐůƵĚŝŶŐƚŚĞĚŝƐĐŽƵŶƚĞĚĐĂƐŚŇŽǁŵŽĚĞů͘dŚĞ
inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgment
is required in establishing fair values. The judgments include
ĐŽŶƐŝĚĞƌĂƟŽŶƐ ŽĨ ŝŶƉƵƚƐ ƐƵĐŚ ĂƐ ůŝƋƵŝĚŝƚLJ ƌŝƐŬ͕ ĐƌĞĚŝƚ ƌŝƐŬ ĂŶĚ
ǀŽůĂƟůŝƚLJ͘ ŚĂŶŐĞƐ ŝŶ ĂƐƐƵŵƉƟŽŶƐ ĂďŽƵƚ ƚŚĞƐĞ ĨĂĐƚŽƌƐ ĐŽƵůĚ
ĂīĞĐƚƚŚĞƌĞƉŽƌƚĞĚĨĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ͘
USEFUL LIFE FOR PROPERTY, PLANT &EQUIPMENT AND
INTANGIBLE ASSETS
The Group depreciates the property, plant &equipment and
intangible assets, using the straight-line method, over their esƟŵĂƚĞĚƵƐĞĨƵůůŝǀĞƐĂŌĞƌƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚŽĨƚŚĞŝƌĞƐƟŵĂƚĞĚ
ƌĞƐŝĚƵĂůǀĂůƵĞƐ͘dŚĞĞƐƟŵĂƚĞĚƵƐĞĨƵůůŝĨĞƌĞŇĞĐƚƐŵĂŶĂŐĞŵĞŶƚ͛Ɛ
ĞƐƟŵĂƚĞŽĨƚŚĞƉĞƌŝŽĚƚŚĂƚƚŚĞ'ƌŽƵƉŝŶƚĞŶĚƐƚŽĚĞƌŝǀĞĨƵƚƵƌĞ
ĞĐŽŶŽŵŝĐďĞŶĞĮƚƐĨƌŽŵƚŚĞƵƐĞŽĨƚŚĞ'ƌŽƵƉ͛ƐƉƌŽƉĞƌƚLJ͕ƉůĂŶƚ
ΘĞƋƵŝƉŵĞŶƚĂŶĚŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ͘dŚĞƌĞƐŝĚƵĂůǀĂůƵĞƌĞŇĞĐƚƐ
ŵĂŶĂŐĞŵĞŶƚ͛Ɛ ĞƐƟŵĂƚĞĚ ĂŵŽƵŶƚ ƚŚĂƚ ƚŚĞ 'ƌŽƵƉ ǁŽƵůĚ ĐƵƌƌĞŶƚůLJ ŽďƚĂŝŶ ĨƌŽŵ ƚŚĞ ĚŝƐƉŽƐĂů ŽĨ ƚŚĞ ĂƐƐĞƚ͕ ĂŌĞƌ ĚĞĚƵĐƟŶŐ
ƚŚĞĞƐƟŵĂƚĞĚĐŽƐƚƐŽĨĚŝƐƉŽƐĂů͕ĂƐŝĨƚŚĞĂƐƐĞƚǁĞƌĞĂůƌĞĂĚLJŽĨ
ƚŚĞĂŐĞĂŶĚŝŶƚŚĞĐŽŶĚŝƟŽŶĞdžƉĞĐƚĞĚĂƚƚŚĞĞŶĚŽĨŝƚƐƵƐĞĨƵů
life. Changes in the expected level of usage and technological
ĚĞǀĞůŽƉŵĞŶƚƐĐŽƵůĚĂīĞĐƚƚŚĞĞĐŽŶŽŵŝĐƐ͕ƵƐĞĨƵůůŝǀĞƐĂŶĚƚŚĞ
ƌĞƐŝĚƵĂůǀĂůƵĞƐŽĨƚŚĞƐĞĂƐƐĞƚƐǁŚŝĐŚĐŽƵůĚƚŚĞŶĐŽŶƐĞƋƵĞŶƟĂůůLJ
ŝŵƉĂĐƚĨƵƚƵƌĞĚĞƉƌĞĐŝĂƟŽŶĐŚĂƌŐĞƐ͘WƌŝŶĐŝƉĂůĚĞƉƌĞĐŝĂƟŽŶĂŶĚ
ĂŵŽƌƟnjĂƟŽŶ ƌĂƚĞƐ ƵƐĞĚ ĂƌĞ ĚŝƐĐƵƐƐĞĚ ƵŶĚĞƌ EŽƚĞ Ϯ͘ϰ͘ϳ ĂŶĚ
Ϯ͘ϰ͘ϭϭƌĞƐƉĞĐƟǀĞůLJ͘
2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
dŚĞĨŽůůŽǁŝŶŐĂƌĞƚŚĞƐŝŐŶŝĮĐĂŶƚĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂƉƉůŝĞĚďLJ
ƚŚĞ'ƌŽƵƉŝŶƉƌĞƉĂƌŝŶŐŝƚƐĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͗
Ϯ͘ϰ͘ϭƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶƐĂŶĚŐŽŽĚǁŝůů
ƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶƐĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌƵƐŝŶŐƚŚĞĂĐƋƵŝƐŝƟŽŶ
ŵĞƚŚŽĚ͘dŚĞĐŽƐƚŽĨĂŶĂĐƋƵŝƐŝƟŽŶŝƐŵĞĂƐƵƌĞĚĂƐƚŚĞĂŐŐƌĞŐĂƚĞ
ŽĨƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶƚƌĂŶƐĨĞƌƌĞĚ͕ŵĞĂƐƵƌĞĚĂƚƚŚĞĂĐƋƵŝƐŝƟŽŶ
date fair value and the amount of any non-controlling interest in
ƚŚĞĂĐƋƵŝƌĞĞ͘&ŽƌĞĂĐŚďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶ͕ƚŚĞ'ƌŽƵƉĞůĞĐƚƐ
whether to measure the non-controlling interest in the acquiree
ĂƚĨĂŝƌǀĂůƵĞŽƌĂƚƚŚĞƉƌŽƉŽƌƟŽŶĂƚĞƐŚĂƌĞŽĨƚŚĞĂĐƋƵŝƌĞĞĂƚ
ƚŚĞĨĂŝƌǀĂůƵĞŽƌĂƚƚŚĞƉƌŽƉŽƌƟŽŶĂƚĞƐŚĂƌĞŽĨƚŚĞĂĐƋƵŝƌĞĞ͛Ɛ
ŝĚĞŶƟĮĂďůĞŶĞƚĂƐƐĞƚƐ͘ĐƋƵŝƐŝƟŽŶͲƌĞůĂƚĞĚĐŽƐƚƐĂƌĞĞdžƉĞŶƐĞĚ
ĂƐŝŶĐƵƌƌĞĚĂŶĚŝŶĐůƵĚĞĚŝŶĂĚŵŝŶŝƐƚƌĂƟǀĞĞdžƉĞŶƐĞƐ͘
tŚĞŶƚŚĞ'ƌŽƵƉĂĐƋƵŝƌĞƐĂďƵƐŝŶĞƐƐ͕ŝƚĂƐƐĞƐƐĞƐƚŚĞĮŶĂŶĐŝĂů
ĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƐƐƵŵĞĚĨŽƌĂƉƉƌŽƉƌŝĂƚĞĐůĂƐƐŝĮĐĂƟŽŶĂŶĚ
ĚĞƐŝŐŶĂƟŽŶŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĐŽŶƚƌĂĐƚƵĂůƚĞƌŵƐ͕ĞĐŽŶŽŵŝĐ
ĐŝƌĐƵŵƐƚĂŶĐĞƐ ĂŶĚ ƉĞƌƟŶĞŶƚ ĐŽŶĚŝƟŽŶƐ ĂƐ Ăƚ ƚŚĞ ĂĐƋƵŝƐŝƟŽŶ
ĚĂƚĞ͘dŚŝƐŝŶĐůƵĚĞƐƚŚĞƐĞƉĂƌĂƟŽŶŽĨĞŵďĞĚĚĞĚĚĞƌŝǀĂƟǀĞƐŝŶ
host contracts by the acquiree.
62
ODEL ANNUAL REPORT
ŽŶƟŶŐĞŶƚĐŽŶƐŝĚĞƌĂƟŽŶƚŚĂƚŝƐĐůĂƐƐŝĮĞĚĂƐĞƋƵŝƚLJŝƐŶŽƚƌĞŵĞĂƐƵƌĞĚĂŶĚƐƵďƐĞƋƵĞŶƚƐĞƩůĞŵĞŶƚŝƐŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞǁŝƚŚ
ĐŚĂŶŐĞƐŝŶĨĂŝƌǀĂůƵĞĞŝƚŚĞƌŝŶĂƉƌŽĮƚŽƌůŽƐƐŽƌĂƐĂĐŚĂŶŐĞƚŽ
ƚŚĞŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ;K/Ϳ͘/ĨƚŚĞĐŽŶƟŶŐĞŶƚĐŽŶƐŝĚĞƌĂƟŽŶŝƐŶŽƚǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵ͕ŝƚŝƐŵĞĂƐƵƌĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĂƉƉƌŽƉƌŝĂƚĞ^>&Z^͘ŽŶƟŶŐĞŶƚĐŽŶƐŝĚĞƌĂƟŽŶ
ƚŚĂƚŝƐĐůĂƐƐŝĮĞĚĂƐĞƋƵŝƚLJŝƐŶŽƚƌĞŵĞĂƐƵƌĞĚĂŶĚƐƵďƐĞƋƵĞŶƚ
ƐĞƩůĞŵĞŶƚŝƐĂĐĐŽƵŶƚĞĚĨŽƌǁŝƚŚŝŶĞƋƵŝƚLJ͘
'ŽŽĚǁŝůůŝƐŝŶŝƟĂůůLJŵĞĂƐƵƌĞĚĂƚĐŽƐƚ͕ďĞŝŶŐƚŚĞĞdžĐĞƐƐŽĨƚŚĞ
ĂŐŐƌĞŐĂƚĞ ŽĨ ƚŚĞ ĐŽŶƐŝĚĞƌĂƟŽŶ ƚƌĂŶƐĨĞƌƌĞĚ ĂŶĚ ƚŚĞ ĂŵŽƵŶƚ
ƌĞĐŽŐŶŝƐĞĚĨŽƌŶŽŶͲĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚŽǀĞƌƚŚĞŶĞƚŝĚĞŶƟĮĂďůĞ
ĂƐƐĞƚƐĂĐƋƵŝƌĞĚĂŶĚůŝĂďŝůŝƟĞƐĂƐƐƵŵĞĚ͘/ĨƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞ
ŶĞƚĂƐƐĞƚƐĂĐƋƵŝƌĞĚŝƐŝŶĞdžĐĞƐƐŽĨƚŚĞĂŐŐƌĞŐĂƚĞĐŽŶƐŝĚĞƌĂƟŽŶ
ƚƌĂŶƐĨĞƌƌĞĚ͕ƚŚĞŐĂŝŶŝƐƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĮƚŽƌůŽƐƐ͘
ŌĞƌŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͕ŐŽŽĚǁŝůůŝƐŵĞĂƐƵƌĞĚĂƚĐŽƐƚůĞƐƐĂŶLJ
accumulated impairment losses. For the purpose of impairment
ƚĞƐƟŶŐ͕ŐŽŽĚǁŝůůĂĐƋƵŝƌĞĚŝŶĂďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶŝƐ͕ĨƌŽŵƚŚĞ
ĂĐƋƵŝƐŝƟŽŶĚĂƚĞ͕ĂůůŽĐĂƚĞĚƚŽĞĂĐŚŽĨƚŚĞ'ƌŽƵƉ͛ƐĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚƐƚŚĂƚĂƌĞĞdžƉĞĐƚĞĚƚŽďĞŶĞĮƚĨƌŽŵƚŚĞĐŽŵďŝŶĂƟŽŶ͕
ŝƌƌĞƐƉĞĐƟǀĞŽĨǁŚĞƚŚĞƌŽƚŚĞƌĂƐƐĞƚƐŽƌůŝĂďŝůŝƟĞƐŽĨƚŚĞĂĐƋƵŝƌĞĞ
are assigned to those units.
tŚĞƌĞŐŽŽĚǁŝůůŚĂƐďĞĞŶĂůůŽĐĂƚĞĚƚŽĂĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚ
ĂŶĚƉĂƌƚŽĨƚŚĞŽƉĞƌĂƟŽŶǁŝƚŚŝŶƚŚĂƚƵŶŝƚŝƐĚŝƐƉŽƐĞĚŽĨ͕ƚŚĞ
ŐŽŽĚǁŝůůĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞŽƉĞƌĂƟŽŶĚŝƐƉŽƐĞĚŽĨŝƐŝŶĐůƵĚĞĚ
ŝŶƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨƚŚĞŽƉĞƌĂƟŽŶǁŚĞŶĚĞƚĞƌŵŝŶŝŶŐƚŚĞ
ŐĂŝŶŽƌůŽƐƐŽŶĚŝƐƉŽƐĂůŽĨƚŚĞŽƉĞƌĂƟŽŶ͘'ŽŽĚǁŝůůĚŝƐƉŽƐĞĚŽĨ
ŝŶƚŚŝƐĐŝƌĐƵŵƐƚĂŶĐĞŝƐŵĞĂƐƵƌĞĚďĂƐĞĚŽŶƚŚĞƌĞůĂƟǀĞǀĂůƵĞƐŽĨ
ƚŚĞŽƉĞƌĂƟŽŶĚŝƐƉŽƐĞĚŽĨĂŶĚƚŚĞƉŽƌƟŽŶŽĨƚŚĞĐĂƐŚͲŐĞŶĞƌĂƟŶŐ
unit retained.
ŽƌůŽƐƐŽŶĐŚĂŶŐĞŝŶĨĂŝƌǀĂůƵĞŝŶƚŚĞŝƚĞŵ;ŝ͘Ğ͕͘ƚŚĞƚƌĂŶƐůĂƟŽŶ
ĚŝīĞƌĞŶĐĞƐŽŶŝƚĞŵƐǁŚŽƐĞĨĂŝƌǀĂůƵĞŐĂŝŶŽƌůŽƐƐŝƐƌĞĐŽŐŶŝƐĞĚ
ŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ;K/ͿŽƌƉƌŽĮƚŽƌůŽƐƐĂƌĞĂůƐŽ
ƌĞĐŽŐŶŝƐĞĚŝŶK/ŽƌƉƌŽĮƚŽƌůŽƐƐ͕ƌĞƐƉĞĐƟǀĞůLJͿ͘
Ϯ͘ϰ͘ϯZĞǀĞŶƵĞƌĞĐŽŐŶŝƟŽŶ
Revenue is recognised to the extent that it is probable that the
ĞĐŽŶŽŵŝĐďĞŶĞĮƚƐǁŝůůŇŽǁƚŽƚŚĞ'ƌŽƵƉĂŶĚƚŚĞƌĞǀĞŶƵĞĐĂŶ
be reliably measured, regardless of when the payment is being
ŵĂĚĞ͘ZĞǀĞŶƵĞŝƐŵĞĂƐƵƌĞĚĂƚƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶ
ƌĞĐĞŝǀĞĚŽƌƌĞĐĞŝǀĂďůĞ͕ƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚĐŽŶƚƌĂĐƚƵĂůůLJĚĞĮŶĞĚ
terms of payment and excluding taxes or duty. The Group asƐĞƐƐĞƐŝƚƐƌĞǀĞŶƵĞĂƌƌĂŶŐĞŵĞŶƚƐĂŐĂŝŶƐƚƐƉĞĐŝĮĐĐƌŝƚĞƌŝĂŝŶŽƌĚĞƌ
ƚŽĚĞƚĞƌŵŝŶĞŝĨŝƚŝƐĂĐƟŶŐĂƐƉƌŝŶĐŝƉĂůŽƌĂŐĞŶƚ͘dŚĞ'ƌŽƵƉŚĂƐ
ĐŽŶĐůƵĚĞĚƚŚĂƚŝƚŝƐĂĐƟŶŐĂƐĂƉƌŝŶĐŝƉĂůŝŶĂůůŽĨŝƚƐƌĞǀĞŶƵĞĂƌƌĂŶŐĞŵĞŶƚƐ͘dŚĞĨŽůůŽǁŝŶŐƐƉĞĐŝĮĐƌĞĐŽŐŶŝƟŽŶĐƌŝƚĞƌŝĂŵƵƐƚĂůƐŽ
be met before revenue is recognised:
dƌĂŶƐĂĐƟŽŶƐĂŶĚďĂůĂŶĐĞƐ
dƌĂŶƐĂĐƟŽŶƐŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐĂƌĞŝŶŝƟĂůůLJƌĞĐŽƌĚĞĚďLJƚŚĞ
'ƌŽƵƉĞŶƟƟĞƐĂƚƚŚĞŝƌƌĞƐƉĞĐƟǀĞĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐLJƐƉŽƚƌĂƚĞ
ĂƚƚŚĞĚĂƚĞƚŚĞƚƌĂŶƐĂĐƟŽŶĮƌƐƚƋƵĂůŝĮĞƐĨŽƌƌĞĐŽŐŶŝƟŽŶ͘
ŝīĞƌĞŶĐĞƐ ĂƌŝƐŝŶŐ ŽŶ ƐĞƩůĞŵĞŶƚ Žƌ ƚƌĂŶƐůĂƟŽŶ ŽĨ ŵŽŶĞƚĂƌLJ
ŝƚĞŵƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĮƚŽƌůŽƐƐ͘
Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange rates
ĂƐĂƚƚŚĞĚĂƚĞƐŽĨƚŚĞŝŶŝƟĂůƚƌĂŶƐĂĐƟŽŶƐ͘EŽŶͲŵŽŶĞƚĂƌLJŝƚĞŵƐ
measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value is determined.
dŚĞŐĂŝŶŽƌůŽƐƐĂƌŝƐŝŶŐŽŶƚƌĂŶƐůĂƟŽŶŽĨŶŽŶͲŵŽŶĞƚĂƌLJŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞŝƐƚƌĞĂƚĞĚŝŶůŝŶĞǁŝƚŚƚŚĞƌĞĐŽŐŶŝƟŽŶŽĨŐĂŝŶ
ƵƌƌĞŶƚŝŶĐŽŵĞƚĂdžĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĨŽƌƚŚĞĐƵƌƌĞŶƚƉĞƌŝŽĚ
are measured at the amount expected to be recovered from or
ƉĂŝĚƚŽƚŚĞƚĂdžĂƟŽŶĂƵƚŚŽƌŝƟĞƐ͘dŚĞƚĂdžƌĂƚĞƐĂŶĚƚĂdžůĂǁƐƵƐĞĚ
to compute the amount are those that are enacted or substanƟǀĞůLJĞŶĂĐƚĞĚ͕ĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͘
ƵƌƌĞŶƚŝŶĐŽŵĞƚĂdžƌĞůĂƟŶŐƚŽŝƚĞŵƐƌĞĐŽŐŶŝƐĞĚĚŝƌĞĐƚůLJŝŶĞƋuity is recognised in equity and not in the income statement.
DĂŶĂŐĞŵĞŶƚƉĞƌŝŽĚŝĐĂůůLJĞǀĂůƵĂƚĞƐƉŽƐŝƟŽŶƐƚĂŬĞŶŝŶƚŚĞƚĂdž
ƌĞƚƵƌŶƐǁŝƚŚƌĞƐƉĞĐƚƚŽƐŝƚƵĂƟŽŶƐŝŶǁŚŝĐŚĂƉƉůŝĐĂďůĞƚĂdžƌĞŐƵůĂƟŽŶƐĂƌĞƐƵďũĞĐƚƚŽŝŶƚĞƌƉƌĞƚĂƟŽŶĂŶĚĞƐƚĂďůŝƐŚĞƐƉƌŽǀŝƐŝŽŶƐ
where appropriate.
DEFERRED TAX
Deferred tax is provided using the liability method on tempoƌĂƌLJĚŝīĞƌĞŶĐĞƐĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞďĞƚǁĞĞŶƚŚĞƚĂdžďĂƐĞƐŽĨ
ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ ĂŶĚ ƚŚĞŝƌ ĐĂƌƌLJŝŶŐ ĂŵŽƵŶƚƐ ĨŽƌ ĮŶĂŶĐŝĂů
ƌĞƉŽƌƟŶŐƉƵƌƉŽƐĞƐ͘
>ŽLJĂůƚLJWŽŝŶƚƐ^ĐŚĞŵĞ
The Group operates a loyalty points programme, which allows
customers to accumulate points when they purchase products
in the Group’s retail stores. The points can then be redeemed
ĨŽƌĨƌĞĞƉƌŽĚƵĐƚƐ͘ŽŶƐŝĚĞƌĂƟŽŶƌĞĐĞŝǀĞĚŝƐĂůůŽĐĂƚĞĚďĞƚǁĞĞŶ
ƚŚĞƉƌŽĚƵĐƚƐƐŽůĚĂŶĚƚŚĞƉŽŝŶƚƐŝƐƐƵĞĚ͕ǁŝƚŚƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶ
allocated to the points equal to their fair value.
ĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƟĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚĨŽƌĂůůƚĂdžĂďůĞƚĞŵƉŽƌĂƌLJ
ĚŝīĞƌĞŶĐĞƐ͕ĞdžĐĞƉƚ͗
&ĂŝƌǀĂůƵĞŽĨƚŚĞƉŽŝŶƚƐŝƐĚĞƚĞƌŵŝŶĞĚďLJĂƉƉůLJŝŶŐĂƐƚĂƟƐƟĐĂů
analysis. The fair value of the points issued is deferred and
recognised as revenue when the points are redeemed or at the
expiry of points awarded.
Interest income
&ŽƌĂůůĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐŵĞĂƐƵƌĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚĂŶĚ
ŝŶƚĞƌĞƐƚďĞĂƌŝŶŐĮŶĂŶĐŝĂůĂƐƐĞƚƐĐůĂƐƐŝĮĞĚĂƐĂǀĂŝůĂďůĞĨŽƌƐĂůĞ͕ŝŶƚĞƌĞƐƚŝŶĐŽŵĞŽƌĞdžƉĞŶƐĞŝƐƌĞĐŽƌĚĞĚƵƐŝŶŐƚŚĞĞīĞĐƟǀĞŝŶƚĞƌĞƐƚ
ƌĂƚĞ;/ZͿ͕ǁŚŝĐŚŝƐƚŚĞƌĂƚĞƚŚĂƚĞdžĂĐƚůLJĚŝƐĐŽƵŶƚƐƚŚĞĞƐƟŵĂƚĞĚ
future cash payments or receipts through the expected life of the
ĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚŽƌĂƐŚŽƌƚĞƌƉĞƌŝŽĚ͕ǁŚĞƌĞĂƉƉƌŽƉƌŝĂƚĞ͕ƚŽ
ƚŚĞŶĞƚĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚŽƌůŝĂďŝůŝƚLJ͘/ŶƚĞƌĞƐƚ
ŝŶĐŽŵĞŝƐŝŶĐůƵĚĞĚŝŶĮŶĂŶĐĞŝŶĐŽŵĞŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘
Dividends
Revenue is recognised when the Group’s right to receive the
payment is established.
ZĞŶƚĂůŝŶĐŽŵĞ
ZĞŶƚĂů ŝŶĐŽŵĞ ĂƌŝƐŝŶŐ ĨƌŽŵ ŽƉĞƌĂƟŶŐ ůĞĂƐĞƐ ŽŶ ƐŚŽƉ ƐƉĂĐĞ
provided to tenants is accounted for on a straight-line basis
over the lease terms.
Ϯ͘ϰ͘ϰdžƉĞŶĚŝƚƵƌĞƌĞĐŽŐŶŝƟŽŶ
DŽŶĞƚĂƌLJĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĚĞŶŽŵŝŶĂƚĞĚŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐ
ĂƌĞƌĞƚƌĂŶƐůĂƚĞĚĂƚƚŚĞĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐLJƐƉŽƚƌĂƚĞŽĨĞdžĐŚĂŶŐĞ
ƌƵůŝŶŐĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͘
CURRENT INCOME TAX
^ĂůĞŽĨŐŽŽĚƐ
ZĞǀĞŶƵĞĨƌŽŵƚŚĞƐĂůĞŽĨŐŽŽĚƐŝƐƌĞĐŽŐŶŝƐĞĚǁŚĞŶƚŚĞƐŝŐŶŝĮcant risks and rewards of ownership of the goods have passed
to the buyer, usually on delivery of the goods.
Ϯ͘ϰ͘Ϯ&ŽƌĞŝŐŶĐƵƌƌĞŶĐLJƚƌĂŶƐůĂƟŽŶ
TŚĞ'ƌŽƵƉ͛ƐĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƉƌĞƐĞŶƚĞĚŝŶ
Sri Lankan Rupees, which is also the parent company’s and its
ƐƵďƐŝĚŝĂƌLJĐŽŵƉĂŶŝĞƐĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐLJ͘
2.4.5 Taxes
a) džƉĞŶƐĞƐĂƌĞƌĞĐŽŐŶŝnjĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŽŶƚŚĞ
ďĂƐŝƐŽĨĂĚŝƌĞĐƚĂƐƐŽĐŝĂƟŽŶďĞƚǁĞĞŶƚŚĞĐŽƐƚŝŶĐƵƌƌĞĚĂŶĚƚŚĞ
ĞĂƌŶŝŶŐŽĨƐƉĞĐŝĮĐŝƚĞŵƐŽĨŝŶĐŽŵĞ͘ůůĞdžƉĞŶĚŝƚƵƌĞŝŶĐƵƌƌĞĚŝŶ
the running of the business and in maintaining the property,
ƉůĂŶƚΘĞƋƵŝƉŵĞŶƚŝŶĂƐƚĂƚĞŽĨĞĸĐŝĞŶĐLJŚĂƐďĞĞŶĐŚĂƌŐĞĚƚŽ
ŝŶĐŽŵĞŝŶĂƌƌŝǀŝŶŐĂƚƚŚĞƉƌŽĮƚĨŽƌƚŚĞLJĞĂƌ͘
ďͿ &ŽƌƚŚĞƉƵƌƉŽƐĞŽĨƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ/ŶĐŽŵĞ
^ƚĂƚĞŵĞŶƚƚŚĞŝƌĞĐƚŽƌƐĂƌĞŽĨƚŚĞŽƉŝŶŝŽŶƚŚĂƚƚŚĞĨƵŶĐƟŽŶŽĨ
expenses method presents fairly the elements of the Company’s
ƉĞƌĨŽƌŵĂŶĐĞ͕ĂŶĚŚĞŶĐĞƐƵĐŚƉƌĞƐĞŶƚĂƟŽŶŵĞƚŚŽĚŝƐĂĚŽƉƚĞĚ͘
ͻ
tŚĞŶƚŚĞĚĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƚLJĂƌŝƐĞƐĨƌŽŵƚŚĞŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶŽĨŐŽŽĚǁŝůůŽƌŽĨĂŶĂƐƐĞƚŽƌůŝĂďŝůŝƚLJŝŶĂƚƌĂŶƐĂĐƟŽŶƚŚĂƚŝƐ
ŶŽƚĂďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶĂŶĚ͕ĂƚƚŚĞƟŵĞŽĨƚŚĞƚƌĂŶƐĂĐƟŽŶ͕
ĂīĞĐƚƐŶĞŝƚŚĞƌƚŚĞĂĐĐŽƵŶƟŶŐƉƌŽĮƚŶŽƌƚĂdžĂďůĞƉƌŽĮƚŽƌůŽƐƐ
ͻ
/ŶƌĞƐƉĞĐƚŽĨƚĂdžĂďůĞƚĞŵƉŽƌĂƌLJĚŝīĞƌĞŶĐĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ
investments in subsidiaries, associates and interests in joint
ǀĞŶƚƵƌĞƐ͕ǁŚĞƌĞƚŚĞƟŵŝŶŐŽĨƚŚĞƌĞǀĞƌƐĂůŽĨƚŚĞƚĞŵƉŽƌĂƌLJĚŝĨferences can be controlled and it is probable that the temporary
ĚŝīĞƌĞŶĐĞƐǁŝůůŶŽƚƌĞǀĞƌƐĞŝŶƚŚĞĨŽƌĞƐĞĞĂďůĞĨƵƚƵƌĞ͘
ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐĂƌĞƌĞĐŽŐŶŝƐĞĚĨŽƌĂůůĚĞĚƵĐƟďůĞƚĞŵƉŽƌĂƌLJ
ĚŝīĞƌĞŶĐĞƐ͕ĐĂƌƌLJĨŽƌǁĂƌĚŽĨƵŶƵƐĞĚƚĂdžĐƌĞĚŝƚƐĂŶĚƵŶƵƐĞĚƚĂdž
ůŽƐƐĞƐ͕ƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚŝƚŝƐƉƌŽďĂďůĞƚŚĂƚƚĂdžĂďůĞƉƌŽĮƚǁŝůůďĞ
ĂǀĂŝůĂďůĞĂŐĂŝŶƐƚǁŚŝĐŚƚŚĞĚĞĚƵĐƟďůĞƚĞŵƉŽƌĂƌLJĚŝīĞƌĞŶĐĞƐ͕
and the carry forward of unused tax credits and unused tax losses
ĐĂŶďĞƵƟůŝƐĞĚ͕ĞdžĐĞƉƚ͗
ͻ
tŚĞŶƚŚĞĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƌĞůĂƟŶŐƚŽƚŚĞĚĞĚƵĐƟďůĞƚĞŵƉŽƌĂƌLJĚŝīĞƌĞŶĐĞĂƌŝƐĞƐĨƌŽŵƚŚĞŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶŽĨĂŶĂƐƐĞƚŽƌ
ůŝĂďŝůŝƚLJŝŶĂƚƌĂŶƐĂĐƟŽŶƚŚĂƚŝƐŶŽƚĂďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶĂŶĚ͕
ĂƚƚŚĞƟŵĞŽĨƚŚĞƚƌĂŶƐĂĐƟŽŶ͕ĂīĞĐƚƐŶĞŝƚŚĞƌƚŚĞĂĐĐŽƵŶƟŶŐ
ƉƌŽĮƚŶŽƌƚĂdžĂďůĞƉƌŽĮƚŽƌůŽƐƐ͘
ͻ
/ŶƌĞƐƉĞĐƚŽĨĚĞĚƵĐƟďůĞƚĞŵƉŽƌĂƌLJĚŝīĞƌĞŶĐĞƐĂƐƐŽĐŝĂƚĞĚ
with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are recognised only to the extent
ƚŚĂƚŝƚŝƐƉƌŽďĂďůĞƚŚĂƚƚŚĞƚĞŵƉŽƌĂƌLJĚŝīĞƌĞŶĐĞƐǁŝůůƌĞǀĞƌƐĞŝŶ
ƚŚĞĨŽƌĞƐĞĞĂďůĞĨƵƚƵƌĞĂŶĚƚĂdžĂďůĞƉƌŽĮƚǁŝůůďĞĂǀĂŝůĂďůĞĂŐĂŝŶƐƚ
ǁŚŝĐŚƚŚĞƚĞŵƉŽƌĂƌLJĚŝīĞƌĞŶĐĞƐĐĂŶďĞƵƟůŝƐĞĚ͘
The carrying amount of deferred tax assets is reviewed at each
ƌĞƉŽƌƟŶŐĚĂƚĞĂŶĚƌĞĚƵĐĞĚƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚŝƚŝƐŶŽůŽŶŐĞƌ
ƉƌŽďĂďůĞƚŚĂƚƐƵĸĐŝĞŶƚƚĂdžĂďůĞƉƌŽĮƚǁŝůůďĞĂǀĂŝůĂďůĞƚŽĂůůŽǁ
ĂůůŽƌƉĂƌƚŽĨƚŚĞĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƚŽďĞƵƟůŝƐĞĚ͘hŶƌĞĐŽŐŶŝƐĞĚ
ĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐĂƌĞƌĞĂƐƐĞƐƐĞĚĂƚĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞĂŶĚĂƌĞ
recognised to the extent that it has become probable that future
ƚĂdžĂďůĞƉƌŽĮƚƐǁŝůůĂůůŽǁƚŚĞĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƚŽďĞƌĞĐŽǀĞƌĞĚ͘
ĞĨĞƌƌĞĚ ƚĂdž ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ ĂƌĞ ŵĞĂƐƵƌĞĚ Ăƚ ƚŚĞ ƚĂdž
rates that are expected to apply in the year when the asset is
ƌĞĂůŝƐĞĚŽƌƚŚĞůŝĂďŝůŝƚLJŝƐƐĞƩůĞĚ͕ďĂƐĞĚŽŶƚĂdžƌĂƚĞƐ;ĂŶĚƚĂdž
ůĂǁƐͿƚŚĂƚŚĂǀĞďĞĞŶĞŶĂĐƚĞĚŽƌƐƵďƐƚĂŶƟǀĞůLJĞŶĂĐƚĞĚĂƚƚŚĞ
ƌĞƉŽƌƟŶŐĚĂƚĞ͘
ODEL ANNUAL REPORT
63
ĞĨĞƌƌĞĚƚĂdžƌĞůĂƟŶŐƚŽŝƚĞŵƐƌĞĐŽŐŶŝƐĞĚŽƵƚƐŝĚĞƉƌŽĮƚŽƌůŽƐƐ
ŝƐƌĞĐŽŐŶŝƐĞĚŽƵƚƐŝĚĞƉƌŽĮƚŽƌůŽƐƐ͘ĞĨĞƌƌĞĚƚĂdžŝƚĞŵƐĂƌĞƌĞĐŽŐŶŝƐĞĚ ŝŶ ĐŽƌƌĞůĂƟŽŶ ƚŽ ƚŚĞ ƵŶĚĞƌůLJŝŶŐ ƚƌĂŶƐĂĐƟŽŶ ĞŝƚŚĞƌ ŝŶ
other comprehensive income or directly in equity.
ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐĂŶĚĚĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƟĞƐĂƌĞŽīƐĞƚŝĨĂůĞŐĂůůLJĞŶĨŽƌĐĞĂďůĞƌŝŐŚƚĞdžŝƐƚƐƚŽƐĞƚŽīĐƵƌƌĞŶƚƚĂdžĂƐƐĞƚƐĂŐĂŝŶƐƚ
ĐƵƌƌĞŶƚŝŶĐŽŵĞƚĂdžůŝĂďŝůŝƟĞƐĂŶĚƚŚĞĚĞĨĞƌƌĞĚƚĂdžĞƐƌĞůĂƚĞƚŽƚŚĞ
ƐĂŵĞƚĂdžĂďůĞĞŶƟƚLJĂŶĚƚŚĞƐĂŵĞƚĂdžĂƟŽŶĂƵƚŚŽƌŝƚLJ͘
Ϯ͘ϰ͘ϲ^ĂůĞƐƚĂdž
Revenues, expenses and assets are recognised net of the amount
of sales tax, except:
ͻ
Where the sales tax incurred on a purchase of assets or
ƐĞƌǀŝĐĞƐŝƐŶŽƚƌĞĐŽǀĞƌĂďůĞĨƌŽŵƚŚĞƚĂdžĂƟŽŶĂƵƚŚŽƌŝƚLJ͕ŝŶǁŚŝĐŚ
ĐĂƐĞƚŚĞƐĂůĞƐƚĂdžŝƐƌĞĐŽŐŶŝƐĞĚĂƐƉĂƌƚŽĨƚŚĞĐŽƐƚŽĨĂĐƋƵŝƐŝƟŽŶ
of the asset or as part of the expense item as applicable.
ͻ
Receivables and payables are stated with the amount of
sales tax included.
The net amount of sales tax recoverable from, or payable to, the
ƚĂdžĂƟŽŶĂƵƚŚŽƌŝƚLJŝƐŝŶĐůƵĚĞĚĂƐƉĂƌƚŽĨƌĞĐĞŝǀĂďůĞƐŽƌƉĂLJĂďůĞƐ
ŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶ͘
Ϯ͘ϰ͘ϳWƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚ
Property, plant and equipment is stated at cost, net of accumuůĂƚĞĚĚĞƉƌĞĐŝĂƟŽŶĂŶĚͬŽƌĂĐĐƵŵƵůĂƚĞĚŝŵƉĂŝƌŵĞŶƚůŽƐƐĞƐ͕ŝĨĂŶLJ͘
Such cost includes the cost of replacing component parts of the
property, plant and equipment and borrowing costs for longƚĞƌŵĐŽŶƐƚƌƵĐƟŽŶƉƌŽũĞĐƚƐŝĨƚŚĞƌĞĐŽŐŶŝƟŽŶĐƌŝƚĞƌŝĂĂƌĞŵĞƚ͘
tŚĞŶ ƐŝŐŶŝĮĐĂŶƚ ƉĂƌƚƐ ŽĨ ƉƌŽƉĞƌƚLJ͕ ƉůĂŶƚ ĂŶĚ ĞƋƵŝƉŵĞŶƚ ĂƌĞ
required to be replaced at intervals, the Group derecognises the
replaced part, and recognises the new part with its own associĂƚĞĚƵƐĞĨƵůůŝĨĞĂŶĚĚĞƉƌĞĐŝĂƟŽŶ͘>ŝŬĞǁŝƐĞ͕ǁŚĞŶĂŵĂũŽƌŝŶƐƉĞĐƟŽŶŝƐƉĞƌĨŽƌŵĞĚ͕ŝƚƐĐŽƐƚŝƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚ
ŽĨƚŚĞƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĂƐĂƌĞƉůĂĐĞŵĞŶƚŝĨƚŚĞƌĞĐŽŐŶŝƟŽŶ
ĐƌŝƚĞƌŝĂĂƌĞƐĂƟƐĮĞĚ͘ůůŽƚŚĞƌƌĞƉĂŝƌĂŶĚŵĂŝŶƚĞŶĂŶĐĞĐŽƐƚƐĂƌĞ
recognised in the income statement as incurred.
The present value of the expected cost for the decommissioning
ŽĨƚŚĞĂƐƐĞƚĂŌĞƌŝƚƐƵƐĞŝƐŝŶĐůƵĚĞĚŝŶƚŚĞĐŽƐƚŽĨƚŚĞƌĞƐƉĞĐƟǀĞ
ĂƐƐĞƚŝĨƚŚĞƌĞĐŽŐŶŝƟŽŶĐƌŝƚĞƌŝĂĨŽƌĂƉƌŽǀŝƐŝŽŶĂƌĞŵĞƚ͘
Land and buildings are measured at fair value less accumulated
ĚĞƉƌĞĐŝĂƟŽŶ ŽŶ ďƵŝůĚŝŶŐƐ ĂŶĚ ŝŵƉĂŝƌŵĞŶƚ ůŽƐƐĞƐ ƌĞĐŽŐŶŝƐĞĚ
ĂŌĞƌƚŚĞĚĂƚĞŽĨƚŚĞƌĞǀĂůƵĂƟŽŶ͘sĂůƵĂƟŽŶƐĂƌĞƉĞƌĨŽƌŵĞĚǁŝƚŚ
ƐƵĸĐŝĞŶƚĨƌĞƋƵĞŶĐLJƚŽĞŶƐƵƌĞƚŚĂƚƚŚĞĨĂŝƌǀĂůƵĞŽĨĂƌĞǀĂůƵĞĚ
ĂƐƐĞƚĚŽĞƐŶŽƚĚŝīĞƌŵĂƚĞƌŝĂůůLJĨƌŽŵŝƚƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚ͘
ƌĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐŝƐƌĞĐŽŐŶŝƐĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞĂŶĚĂĐĐƵŵƵůĂƚĞĚŝŶĞƋƵŝƚLJŝŶƚŚĞĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞ͕
ĞdžĐĞƉƚƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚŝƚƌĞǀĞƌƐĞƐĂƌĞǀĂůƵĂƟŽŶĚĞĐƌĞĂƐĞŽĨƚŚĞ
same asset previously recognised in the income statement, in
which case the increase is recognised in the income statement. A
ƌĞǀĂůƵĂƟŽŶĚĞĮĐŝƚŝƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͕ĞdžĐĞƉƚ
ƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚŝƚŽīƐĞƚƐĂŶĞdžŝƐƟŶŐƐƵƌƉůƵƐŽŶƚŚĞƐĂŵĞĂƐƐĞƚ
ƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞ͘
ŶĂŶŶƵĂůƚƌĂŶƐĨĞƌĨƌŽŵƚŚĞĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞƚŽƌĞƚĂŝŶĞĚ
ĞĂƌŶŝŶŐƐŝƐŵĂĚĞĨŽƌƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶĚĞƉƌĞĐŝĂƟŽŶďĂƐĞĚ
ŽŶƚŚĞƌĞǀĂůƵĞĚĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨƚŚĞĂƐƐĞƚƐĂŶĚĚĞƉƌĞĐŝĂƟŽŶ
ďĂƐĞĚ ŽŶ ƚŚĞ ĂƐƐĞƚƐ ŽƌŝŐŝŶĂů ĐŽƐƚ͘ ĚĚŝƟŽŶĂůůLJ͕ ĂĐĐƵŵƵůĂƚĞĚ
ĚĞƉƌĞĐŝĂƟŽŶ ĂƐ Ăƚ ƚŚĞ ƌĞǀĂůƵĂƟŽŶ ĚĂƚĞ ŝƐ ĞůŝŵŝŶĂƚĞĚ ĂŐĂŝŶƐƚ
the gross carrying amount of the asset and the net amount is
restated to the revalued amount of the asset. Upon disposal, any
64
ODEL ANNUAL REPORT
ƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞƌĞůĂƟŶŐƚŽƚŚĞƉĂƌƟĐƵůĂƌĂƐƐĞƚďĞŝŶŐƐŽůĚŝƐ
transferred to retained earnings.
ĞƉƌĞĐŝĂƟŽŶŝƐĐĂůĐƵůĂƚĞĚŽŶĂƐƚƌĂŝŐŚƚͲůŝŶĞďĂƐŝƐŽǀĞƌƚŚĞĞƐƟmated useful lives of the assets as follows:
ͻ
ͻ
ͻ
ͻ
ͻ
ͻ
ͻ
ͻ
ͻ
ͻ
ͻ
ͻ
Buildings
Over 40 Years
Lease hold buildings
Over the lease period
Equipment
Over 10 Years
&ŝdžƚƵƌĞƐʹĂŝƌĐŽŶĚŝƟŽŶ KǀĞƌϭϬzĞĂƌƐ
Fixtures – other
Over 10 Years
Furniture
Over 10 Years
KĸĐĞƋƵŝƉŵĞŶƚʹĐŽŵƉƵƚĞƌ
KǀĞƌϬϱzĞĂƌƐ
KĸĐĞƋƵŝƉŵĞŶƚʹŽƚŚĞƌ
KǀĞƌϮϬzĞĂƌƐ
^ŚŽƉĮƫŶŐƐͲĮdžƚƵƌĞƐ KǀĞƌϭϬzĞĂƌƐ
^ŚŽƉĮƫŶŐƐͲŵŽďŝůĞƐ KǀĞƌϭϬzĞĂƌƐ
Motor vehicles
Over 05 Years
DŽƚŽƌǀĞŚŝĐůĞƐʹĮŶĂŶĐĞůĞĂƐĞ
KǀĞƌƚŚĞůĞĂƐĞƉĞƌŝŽĚ
ŶŝƚĞŵŽĨƉƌŽƉĞƌƚLJ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĂŶĚĂŶLJƐŝŐŶŝĮĐĂŶƚƉĂƌƚ
ŝŶŝƟĂůůLJƌĞĐŽŐŶŝƐĞĚŝƐĚĞƌĞĐŽŐŶŝƐĞĚƵƉŽŶĚŝƐƉŽƐĂůŽƌǁŚĞŶŶŽ
ĨƵƚƵƌĞĞĐŽŶŽŵŝĐďĞŶĞĮƚƐĂƌĞĞdžƉĞĐƚĞĚĨƌŽŵŝƚƐƵƐĞŽƌĚŝƐƉŽƐĂů͘
ŶLJŐĂŝŶŽƌůŽƐƐĂƌŝƐŝŶŐŽŶĚĞƌĞĐŽŐŶŝƟŽŶŽĨƚŚĞĂƐƐĞƚ;ĐĂůĐƵůĂƚĞĚ
ĂƐƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞŶĞƚĚŝƐƉŽƐĂůƉƌŽĐĞĞĚƐĂŶĚƚŚĞĐĂƌrying amount of the asset) is included in the income statement
when the asset is derecognised.
The assets’ residual values, useful lives and methods of depreĐŝĂƟŽŶ ĂƌĞ ƌĞǀŝĞǁĞĚ Ăƚ ĞĂĐŚ ĮŶĂŶĐŝĂů LJĞĂƌ ĞŶĚ ĂŶĚ ĂĚũƵƐƚĞĚ
ƉƌŽƐƉĞĐƟǀĞůLJ͕ŝĨĂƉƉƌŽƉƌŝĂƚĞ͘
2.4.8 Leases
dŚĞĚĞƚĞƌŵŝŶĂƟŽŶŽĨǁŚĞƚŚĞƌĂŶĂƌƌĂŶŐĞŵĞŶƚŝƐ͕ŽƌĐŽŶƚĂŝŶƐ͕
a lease is based on the substance of the arrangement at the
ŝŶĐĞƉƟŽŶĚĂƚĞ͕ǁŚĞƚŚĞƌĨƵůĮůŵĞŶƚŽĨƚŚĞĂƌƌĂŶŐĞŵĞŶƚŝƐĚĞƉĞŶĚĞŶƚŽŶƚŚĞƵƐĞŽĨĂƐƉĞĐŝĮĐĂƐƐĞƚŽƌĂƐƐĞƚƐŽƌƚŚĞĂƌƌĂŶŐĞŵĞŶƚ
conveys a right to use the asset, even if that right is not explicitly
ƐƉĞĐŝĮĞĚŝŶĂŶĂƌƌĂŶŐĞŵĞŶƚ͘
GROUP AS A LESSEE
&ŝŶĂŶĐĞůĞĂƐĞƐǁŚŝĐŚƚƌĂŶƐĨĞƌƚŽƚŚĞ'ƌŽƵƉƐƵďƐƚĂŶƟĂůůLJĂůůƚŚĞ
ƌŝƐŬƐĂŶĚďĞŶĞĮƚƐŝŶĐŝĚĞŶƚĂůƚŽŽǁŶĞƌƐŚŝƉŽĨƚŚĞůĞĂƐĞĚŝƚĞŵ͕
are capitalised at the commencement of the lease at the fair
value of the leased property or, if lower, at the present value of
ƚŚĞŵŝŶŝŵƵŵůĞĂƐĞƉĂLJŵĞŶƚƐ͘>ĞĂƐĞƉĂLJŵĞŶƚƐĂƌĞĂƉƉŽƌƟŽŶĞĚ
ďĞƚǁĞĞŶĮŶĂŶĐĞĐŚĂƌŐĞƐĂŶĚƌĞĚƵĐƟŽŶŽĨƚŚĞůĞĂƐĞůŝĂďŝůŝƚLJƐŽĂƐ
to achieve a constant rate of interest on the remaining balance
ŽĨƚŚĞůŝĂďŝůŝƚLJ͘&ŝŶĂŶĐĞĐŚĂƌŐĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶĮŶĂŶĐĞĐŽƐƚƐ
in the income statement.
A leased asset is depreciated over the useful life of the asset.
,ŽǁĞǀĞƌ͕ ŝĨ ƚŚĞƌĞ ŝƐ ŶŽ ƌĞĂƐŽŶĂďůĞ ĐĞƌƚĂŝŶƚLJ ƚŚĂƚ ƚŚĞ 'ƌŽƵƉ
will obtain ownership by the end of the lease term, the asset is
ĚĞƉƌĞĐŝĂƚĞĚŽǀĞƌƚŚĞƐŚŽƌƚĞƌŽĨƚŚĞĞƐƟŵĂƚĞĚƵƐĞĨƵůůŝĨĞŽĨƚŚĞ
asset and the lease term.
Operating lease payments are recognised as an operating
expense in the income statement on a straight-line basis over
the lease term.
GROUP AS A LESSOR
>ĞĂƐĞƐ ŝŶ ǁŚŝĐŚ ƚŚĞ 'ƌŽƵƉ ĚŽĞƐ ŶŽƚ ƚƌĂŶƐĨĞƌ ƐƵďƐƚĂŶƟĂůůLJ Ăůů
ƚŚĞƌŝƐŬƐĂŶĚďĞŶĞĮƚƐŽĨŽǁŶĞƌƐŚŝƉŽĨƚŚĞĂƐƐĞƚĂƌĞĐůĂƐƐŝĮĞĚĂƐ
ŽƉĞƌĂƟŶŐůĞĂƐĞƐ͘/ŶŝƟĂůĚŝƌĞĐƚĐŽƐƚƐŝŶĐƵƌƌĞĚŝŶŶĞŐŽƟĂƟŶŐĂŶ
ŽƉĞƌĂƟŶŐůĞĂƐĞĂƌĞĂĚĚĞĚƚŽƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨƚŚĞůĞĂƐĞĚ
asset and recognised over the lease term on the same bases as
rental income.
Ϯ͘ϰ͘ϵŽƌƌŽǁŝŶŐĐŽƐƚƐ
ŽƌƌŽǁŝŶŐ ĐŽƐƚƐ ĚŝƌĞĐƚůLJ ĂƩƌŝďƵƚĂďůĞ ƚŽ ƚŚĞ ĂĐƋƵŝƐŝƟŽŶ͕ ĐŽŶƐƚƌƵĐƟŽŶ Žƌ ƉƌŽĚƵĐƟŽŶ ŽĨ ĂŶ ĂƐƐĞƚ ƚŚĂƚ ŶĞĐĞƐƐĂƌŝůLJ ƚĂŬĞƐ Ă
ƐƵďƐƚĂŶƟĂůƉĞƌŝŽĚŽĨƟŵĞƚŽŐĞƚƌĞĂĚLJĨŽƌŝƚƐŝŶƚĞŶĚĞĚƵƐĞŽƌ
ƐĂůĞĂƌĞĐĂƉŝƚĂůŝƐĞĚĂƐƉĂƌƚŽĨƚŚĞĐŽƐƚŽĨƚŚĞƌĞƐƉĞĐƟǀĞĂƐƐĞƚƐ͘
All other borrowing costs are expensed in the period they occur.
ŽƌƌŽǁŝŶŐĐŽƐƚƐĐŽŶƐŝƐƚŽĨŝŶƚĞƌĞƐƚĂŶĚŽƚŚĞƌĐŽƐƚƐƚŚĂƚĂŶĞŶƟƚLJ
ŝŶĐƵƌƐŝŶĐŽŶŶĞĐƟŽŶǁŝƚŚƚŚĞďŽƌƌŽǁŝŶŐŽĨĨƵŶĚƐ͘
Ϯ͘ϰ͘ϭϬ /ŶǀĞƐƚŵĞŶƚWƌŽƉĞƌƟĞƐ
/ŶǀĞƐƚŵĞŶƚƉƌŽƉĞƌƟĞƐĂƌĞŵĞĂƐƵƌĞĚŝŶŝƟĂůůLJĂƚĐŽƐƚ͕ŝŶĐůƵĚŝŶŐ
ƚƌĂŶƐĂĐƟŽŶĐŽƐƚƐ͘^ƵďƐĞƋƵĞŶƚƚŽŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͕ŝŶǀĞƐƚŵĞŶƚ
ƉƌŽƉĞƌƟĞƐĂƌĞƐƚĂƚĞĚĂƚĨĂŝƌǀĂůƵĞ͕ǁŚŝĐŚƌĞŇĞĐƚƐŵĂƌŬĞƚĐŽŶĚŝƟŽŶƐĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͘'ĂŝŶƐŽƌůŽƐƐĞƐĂƌŝƐŝŶŐĨƌŽŵĐŚĂŶŐĞƐ
ŝŶƚŚĞĨĂŝƌǀĂůƵĞƐŽĨŝŶǀĞƐƚŵĞŶƚƉƌŽƉĞƌƟĞƐĂƌĞŝŶĐůƵĚĞĚŝŶƚŚĞ
income statement in the period in which they arise. Fair values
are evaluated annually by an accredited external, independent
ǀĂůƵĞƌ͕ĂƉƉůLJŝŶŐĂǀĂůƵĂƟŽŶŵŽĚĞůƌĞĐŽŵŵĞŶĚĞĚďLJƚŚĞ/ŶƚĞƌŶĂƟŽŶĂůsĂůƵĂƟŽŶ^ƚĂŶĚĂƌĚƐŽŵŵŝƩĞĞ͘
/ŶǀĞƐƚŵĞŶƚƉƌŽƉĞƌƟĞƐĂƌĞĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶĞŝƚŚĞƌƚŚĞLJŚĂǀĞ
been disposed of or when the investment property is permaŶĞŶƚůLJ ǁŝƚŚĚƌĂǁŶ ĨƌŽŵ ƵƐĞ ĂŶĚ ŶŽ ĨƵƚƵƌĞ ĞĐŽŶŽŵŝĐ ďĞŶĞĮƚ
ŝƐĞdžƉĞĐƚĞĚĨƌŽŵŝƚƐĚŝƐƉŽƐĂů͘dŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞŶĞƚ
disposal proceeds and the carrying amount of the asset is recŽŐŶŝƐĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŝŶƚŚĞƉĞƌŝŽĚŽĨĚĞƌĞĐŽŐŶŝƟŽŶ͘
Transfers are made to or from investment property only when
there is a change in use. For a transfer from investment property
to owner-occupied property, the deemed cost for subsequent
ĂĐĐŽƵŶƟŶŐ ŝƐ ƚŚĞ ĨĂŝƌ ǀĂůƵĞ Ăƚ ƚŚĞ ĚĂƚĞ ŽĨ ĐŚĂŶŐĞ͘ /Ĩ ŽǁŶĞƌͲ
occupied property becomes an investment property, the Group
accounts for such property in accordance with the policy stated
under property, plant and equipment up to the date of change.
Ϯ͘ϰ͘ϭϭ/ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ
dŚĞƵƐĞĨƵůůŝǀĞƐŽĨŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐĂƌĞĂƐƐĞƐƐĞĚĂƐĞŝƚŚĞƌĮŶŝƚĞ
ŽƌŝŶĚĞĮŶŝƚĞ͘
/ŶƚĂŶŐŝďůĞĂƐƐĞƚƐǁŝƚŚĮŶŝƚĞůŝǀĞƐĂƌĞĂŵŽƌƟƐĞĚŽǀĞƌƚŚĞŝƌƵƐĞĨƵů
economic lives and assessed for impairmentwhenever there is
ĂŶ ŝŶĚŝĐĂƟŽŶ ƚŚĂƚ ƚŚĞ ŝŶƚĂŶŐŝďůĞ ĂƐƐĞƚ ŵĂLJ ďĞ ŝŵƉĂŝƌĞĚ͘ dŚĞ
ĂŵŽƌƟƐĂƟŽŶ ƉĞƌŝŽĚ ĂŶĚ ƚŚĞ ĂŵŽƌƟƐĂƟŽŶ ŵĞƚŚŽĚ ĨŽƌ ĂŶ ŝŶƚĂŶŐŝďůĞĂƐƐĞƚǁŝƚŚĂĮŶŝƚĞƵƐĞĨƵůůŝĨĞŝƐƌĞǀŝĞǁĞĚĂƚůĞĂƐƚĂƚƚŚĞ
ĞŶĚŽĨĞĂĐŚƌĞƉŽƌƟŶŐƉĞƌŝŽĚ͘ŚĂŶŐĞƐŝŶƚŚĞĞdžƉĞĐƚĞĚƵƐĞĨƵů
ůŝĨĞŽƌƚŚĞĞdžƉĞĐƚĞĚƉĂƩĞƌŶŽĨĐŽŶƐƵŵƉƟŽŶŽĨĨƵƚƵƌĞĞĐŽŶŽŵŝĐ
ďĞŶĞĮƚƐĞŵďŽĚŝĞĚŝŶƚŚĞĂƐƐĞƚŝƐĂĐĐŽƵŶƚĞĚĨŽƌďLJĐŚĂŶŐŝŶŐƚŚĞ
ĂŵŽƌƟƐĂƟŽŶƉĞƌŝŽĚŽƌŵĞƚŚŽĚ͕ĂƐĂƉƉƌŽƉƌŝĂƚĞ͕ĂŶĚĂƌĞƚƌĞĂƚĞĚ
ĂƐĐŚĂŶŐĞƐŝŶĂĐĐŽƵŶƟŶŐĞƐƟŵĂƚĞƐ͘dŚĞĂŵŽƌƟƐĂƟŽŶĞdžƉĞŶƐĞ
ŽŶŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐǁŝƚŚĮŶŝƚĞůŝǀĞƐŝƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞŝŶĐŽŵĞ
ƐƚĂƚĞŵĞŶƚŝŶƚŚĞĞdžƉĞŶƐĞĐĂƚĞŐŽƌLJĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĨƵŶĐƟŽŶ
of the intangible assets.
ŵŽƌƟnjĂƟŽŶŝƐĐĂůĐƵůĂƚĞĚŽŶĂƐƚƌĂŝŐŚƚͲůŝŶĞďĂƐŝƐŽǀĞƌƚŚĞĞƐƟmated useful lives of the assets as follows:
ŽŵƉƵƚĞƌ^ŽŌǁĂƌĞ
Ϯ͘ϰ͘ϭϮ&ŝŶĂŶĐŝĂů ŝŶƐƚƌƵŵĞŶƚƐ Ͷ ŝŶŝƟĂů ƌĞĐŽŐŶŝƟŽŶ ĂŶĚ
ƐƵďƐĞƋƵĞŶƚŵĞĂƐƵƌĞŵĞŶƚ
i)
&ŝŶĂŶĐŝĂůĂƐƐĞƚƐ
INITIAL RECOGNITION AND MEASUREMENT
&ŝŶĂŶĐŝĂů ĂƐƐĞƚƐ ǁŝƚŚŝŶ ƚŚĞ ƐĐŽƉĞ ŽĨ ><^ ϯϵ ĂƌĞ ĐůĂƐƐŝĮĞĚ ĂƐ
ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ ĂƚĨĂŝƌ ǀĂůƵĞ ƚŚƌŽƵŐŚ ƉƌŽĮƚ Žƌ ůŽƐƐ͕ ůŽĂŶƐ ĂŶĚ
receivables, held-to-maturity investments, available-for-sale
ĮŶĂŶĐŝĂůĂƐƐĞƚƐ͕ŽƌĂƐĚĞƌŝǀĂƟǀĞƐĚĞƐŝŐŶĂƚĞĚĂƐŚĞĚŐŝŶŐŝŶƐƚƌƵŵĞŶƚƐŝŶĂŶĞīĞĐƟǀĞŚĞĚŐĞ͕ĂƐĂƉƉƌŽƉƌŝĂƚĞ͘dŚĞ'ƌŽƵƉĚĞƚĞƌŵŝŶĞƐƚŚĞĐůĂƐƐŝĮĐĂƟŽŶŽĨŝƚƐĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƚŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͘
ůůĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶŝƟĂůůLJĂƚĨĂŝƌǀĂůƵĞƉůƵƐƚƌĂŶƐĂĐƟŽŶĐŽƐƚ͕ĞdžĐĞƉƚŝŶƚŚĞĐĂƐĞŽĨĂƐƐĞƚƐƌĞĐŽƌĚĞĚĂƚĨĂŝƌǀĂůƵĞ
ƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͕ĚŝƌĞĐƚůLJĂƩƌŝďƵƚĂďůĞƚƌĂŶƐĂĐƟŽŶĐŽƐƚƐ͘
WƵƌĐŚĂƐĞƐŽƌƐĂůĞƐŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐƚŚĂƚƌĞƋƵŝƌĞĚĞůŝǀĞƌLJŽĨĂƐƐĞƚƐǁŝƚŚŝŶĂƟŵĞĨƌĂŵĞĞƐƚĂďůŝƐŚĞĚďLJƌĞŐƵůĂƟŽŶŽƌĐŽŶǀĞŶƟŽŶ
in the marketplace (regular way trades) are recognised on the
trade date, i.e., the date that the Group commits to purchase
or sell the asset.
dŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůĂƐƐĞƚƐŝŶĐůƵĚĞĐĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐ͕ƚƌĂĚĞĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ͕ƋƵŽƚĞĚĂŶĚƵŶƋƵŽƚĞĚĮŶĂŶĐŝĂů
instruments.
SUBSEQUENT MEASUREMENT
/ŶƚĂŶŐŝďůĞ ĂƐƐĞƚƐ ĂĐƋƵŝƌĞĚ ƐĞƉĂƌĂƚĞůLJ ĂƌĞ ŵĞĂƐƵƌĞĚ ŽŶ ŝŶŝƟĂů
ƌĞĐŽŐŶŝƟŽŶ Ăƚ ĐŽƐƚ͘ dŚĞ ĐŽƐƚ ŽĨ ŝŶƚĂŶŐŝďůĞ ĂƐƐĞƚƐ ĂĐƋƵŝƌĞĚ ŝŶ
Ă ďƵƐŝŶĞƐƐ ĐŽŵďŝŶĂƟŽŶ ŝƐ ƚŚĞŝƌ ĨĂŝƌ ǀĂůƵĞ ĂƐ Ăƚ ƚŚĞ ĚĂƚĞ ŽĨ
ĂĐƋƵŝƐŝƟŽŶ͘&ŽůůŽǁŝŶŐŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͕ŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐĂƌĞ
ĐĂƌƌŝĞĚĂƚĐŽƐƚůĞƐƐĂĐĐƵŵƵůĂƚĞĚĂŵŽƌƟƐĂƟŽŶĂŶĚĂĐĐƵŵƵůĂƚĞĚ
impairment losses, if any. Internally generated intangible assets,
excluding capitalised development costs, are not capitalised and
ĞdžƉĞŶĚŝƚƵƌĞŝƐƌĞŇĞĐƚĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŝŶƚŚĞLJĞĂƌŝŶ
which the expenditure is incurred.
ͻ
/ŶƚĂŶŐŝďůĞĂƐƐĞƚƐǁŝƚŚŝŶĚĞĮŶŝƚĞƵƐĞĨƵůůŝǀĞƐĂƌĞŶŽƚĂŵŽƌƟƐĞĚ͕
but are tested for impairment annually, either individually or
ĂƚƚŚĞĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚůĞǀĞů͘dŚĞĂƐƐĞƐƐŵĞŶƚŽĨŝŶĚĞĮŶŝƚĞ
ůŝĨĞŝƐƌĞǀŝĞǁĞĚĂŶŶƵĂůůLJƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌƚŚĞŝŶĚĞĮŶŝƚĞ
ůŝĨĞĐŽŶƟŶƵĞƐƚŽďĞƐƵƉƉŽƌƚĂďůĞ͘/ĨŶŽƚ͕ƚŚĞĐŚĂŶŐĞŝŶƵƐĞĨƵůůŝĨĞ
ĨƌŽŵŝŶĚĞĮŶŝƚĞƚŽĮŶŝƚĞŝƐŵĂĚĞŽŶĂƉƌŽƐƉĞĐƟǀĞďĂƐŝƐ͘'ĂŝŶƐ
ŽƌůŽƐƐĞƐĂƌŝƐŝŶŐĨƌŽŵĚĞƌĞĐŽŐŶŝƟŽŶŽĨĂŶŝŶƚĂŶŐŝďůĞĂƐƐĞƚĂƌĞ
ŵĞĂƐƵƌĞĚĂƐƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞŶĞƚĚŝƐƉŽƐĂůƉƌŽĐĞĞĚƐ
and the carrying amount of the asset and are recognised in the
income statement when the asset is derecognised.
dŚĞƐƵďƐĞƋƵĞŶƚŵĞĂƐƵƌĞŵĞŶƚŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐĚĞƉĞŶĚƐŽŶ
ƚŚĞŝƌĐůĂƐƐŝĮĐĂƟŽŶĂƐĨŽůůŽǁƐ͗
&ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ
&ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐŝŶĐůƵĚĞƐĮŶĂŶĐŝĂůĂƐƐĞƚƐŚĞůĚĨŽƌƚƌĂĚŝŶŐĂŶĚĮŶĂŶĐŝĂůĂƐƐĞƚƐĚĞƐŝŐŶĂƚĞĚƵƉŽŶ
ŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͘&ŝŶĂŶĐŝĂů
ĂƐƐĞƚƐĂƌĞĐůĂƐƐŝĮĞĚĂƐŚĞůĚĨŽƌƚƌĂĚŝŶŐŝĨƚŚĞLJĂƌĞĂĐƋƵŝƌĞĚĨŽƌ
the purpose of selling or repurchasing in the near term. This
ĐĂƚĞŐŽƌLJŝŶĐůƵĚĞƐĚĞƌŝǀĂƟǀĞĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĞŶƚĞƌĞĚŝŶƚŽ
by the Group that are not designated as hedging instruments
ŝŶŚĞĚŐĞƌĞůĂƟŽŶƐŚŝƉƐĂƐĚĞĮŶĞĚďLJ><^ϯϵ͘ĞƌŝǀĂƟǀĞƐ͕ŝŶĐůƵĚŝŶŐƐĞƉĂƌĂƚĞĚĞŵďĞĚĚĞĚĚĞƌŝǀĂƟǀĞƐĂƌĞĂůƐŽĐůĂƐƐŝĮĞĚĂƐ
ŚĞůĚĨŽƌƚƌĂĚŝŶŐƵŶůĞƐƐƚŚĞLJĂƌĞĚĞƐŝŐŶĂƚĞĚĂƐĞīĞĐƟǀĞŚĞĚŐŝŶŐ
instruments.
&ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚĂŶĚůŽƐƐĂƌĞĐĂƌƌŝĞĚ
ŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƚĨĂŝƌǀĂůƵĞǁŝƚŚĐŚĂŶŐĞƐ
ŝŶĨĂŝƌǀĂůƵĞƌĞĐŽŐŶŝƐĞĚŝŶĮŶĂŶĐĞŝŶĐŽŵĞŽƌĮŶĂŶĐĞĐŽƐƚƐŝŶƚŚĞ
income statement.
dŚĞ'ƌŽƵƉĞǀĂůƵĂƚĞƐŝƚƐĮŶĂŶĐŝĂůĂƐƐĞƚƐŚĞůĚĨŽƌƚƌĂĚŝŶŐ͕ŽƚŚĞƌ
ƚŚĂŶ ĚĞƌŝǀĂƟǀĞƐ͕ ƚŽ ĚĞƚĞƌŵŝŶĞ ǁŚĞƚŚĞƌ ƚŚĞ ŝŶƚĞŶƟŽŶ ƚŽ ƐĞůů
ƚŚĞŵŝŶƚŚĞŶĞĂƌƚĞƌŵŝƐƐƟůůĂƉƉƌŽƉƌŝĂƚĞ͘tŚĞŶƚŚĞ'ƌŽƵƉŝƐ
ƵŶĂďůĞƚŽƚƌĂĚĞƚŚĞƐĞĮŶĂŶĐŝĂůĂƐƐĞƚƐĚƵĞƚŽŝŶĂĐƟǀĞŵĂƌŬĞƚƐ
ĂŶĚ ŵĂŶĂŐĞŵĞŶƚ͛Ɛ ŝŶƚĞŶƟŽŶ ƚŽ ƐĞůů ƚŚĞŵ ŝŶ ƚŚĞ ĨŽƌĞƐĞĞĂďůĞ
ĨƵƚƵƌĞƐŝŐŶŝĮĐĂŶƚůLJĐŚĂŶŐĞƐ͕ƚŚĞ'ƌŽƵƉŵĂLJĞůĞĐƚƚŽƌĞĐůĂƐƐŝĨLJ
ƚŚĞƐĞĮŶĂŶĐŝĂůĂƐƐĞƚƐŝŶƌĂƌĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͘dŚĞƌĞĐůĂƐƐŝĮĐĂƟŽŶ
ϯzĞĂƌƐ
ODEL ANNUAL REPORT
65
to loans and receivables, available-for-sale or held to maturity
ĚĞƉĞŶĚƐŽŶƚŚĞŶĂƚƵƌĞŽĨƚŚĞĂƐƐĞƚ͘dŚŝƐĞǀĂůƵĂƟŽŶĚŽĞƐŶŽƚ
ĂīĞĐƚĂŶLJĮŶĂŶĐŝĂůĂƐƐĞƚƐĚĞƐŝŐŶĂƚĞĚĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚ
ŽƌůŽƐƐƵƐŝŶŐƚŚĞĨĂŝƌǀĂůƵĞŽƉƟŽŶĂƚĚĞƐŝŐŶĂƟŽŶ͘
>ŽĂŶƐĂŶĚƌĞĐĞŝǀĂďůĞƐ
>ŽĂŶƐĂŶĚƌĞĐĞŝǀĂďůĞƐĂƌĞŶŽŶͲĚĞƌŝǀĂƟǀĞĮŶĂŶĐŝĂůĂƐƐĞƚƐǁŝƚŚ
ĮdžĞĚŽƌĚĞƚĞƌŵŝŶĂďůĞƉĂLJŵĞŶƚƐƚŚĂƚĂƌĞŶŽƚƋƵŽƚĞĚŝŶĂŶĂĐƟǀĞŵĂƌŬĞƚ͘ŌĞƌŝŶŝƟĂůŵĞĂƐƵƌĞŵĞŶƚ͕ƐƵĐŚĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞ
ƐƵďƐĞƋƵĞŶƚůLJ ŵĞĂƐƵƌĞĚ Ăƚ ĂŵŽƌƟƐĞĚ ĐŽƐƚ ƵƐŝŶŐ ƚŚĞ ĞīĞĐƟǀĞ
ŝŶƚĞƌĞƐƚƌĂƚĞŵĞƚŚŽĚ;/ZͿ͕ůĞƐƐŝŵƉĂŝƌŵĞŶƚ͘ŵŽƌƟƐĞĚĐŽƐƚŝƐ
calculated by taking into account any discount or premium on
ĂĐƋƵŝƐŝƟŽŶĂŶĚĨĞĞƐŽƌĐŽƐƚƐƚŚĂƚĂƌĞĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞ/Z͘
dŚĞ/ZĂŵŽƌƟƐĂƟŽŶŝƐŝŶĐůƵĚĞĚŝŶĮŶĂŶĐĞŝŶĐŽŵĞŝŶƚŚĞŝŶĐŽŵĞ
statement. The losses arising from impairment are recognised
ŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŝŶĮŶĂŶĐĞĐŽƐƚƐ͘
DERECOGNITION
ĮŶĂŶĐŝĂůĂƐƐĞƚ;Žƌ͕ǁŚĞƌĞĂƉƉůŝĐĂďůĞĂƉĂƌƚŽĨĂĮŶĂŶĐŝĂůĂƐƐĞƚŽƌ
ƉĂƌƚŽĨĂŐƌŽƵƉŽĨƐŝŵŝůĂƌĮŶĂŶĐŝĂůĂƐƐĞƚƐͿŝƐĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶ͗
ͻ
ͻ
dŚĞƌŝŐŚƚƐƚŽƌĞĐĞŝǀĞĐĂƐŚŇŽǁƐĨƌŽŵƚŚĞĂƐƐĞƚŚĂǀĞĞdžƉŝƌĞĚ
dŚĞ'ƌŽƵƉŚĂƐƚƌĂŶƐĨĞƌƌĞĚŝƚƐƌŝŐŚƚƐƚŽƌĞĐĞŝǀĞĐĂƐŚŇŽǁƐ
ĨƌŽŵƚŚĞĂƐƐĞƚŽƌŚĂƐĂƐƐƵŵĞĚĂŶŽďůŝŐĂƟŽŶƚŽƉĂLJƚŚĞƌĞĐĞŝǀĞĚ
ĐĂƐŚŇŽǁƐŝŶĨƵůůǁŝƚŚŽƵƚŵĂƚĞƌŝĂůĚĞůĂLJƚŽĂƚŚŝƌĚƉĂƌƚLJƵŶĚĞƌĂ
͚ƉĂƐƐͲƚŚƌŽƵŐŚ͛ĂƌƌĂŶŐĞŵĞŶƚ͖ĂŶĚĞŝƚŚĞƌ;ĂͿƚŚĞ'ƌŽƵƉŚĂƐƚƌĂŶƐĨĞƌƌĞĚƐƵďƐƚĂŶƟĂůůLJĂůůƚŚĞƌŝƐŬƐĂŶĚƌĞǁĂƌĚƐŽĨƚŚĞĂƐƐĞƚ͕Žƌ;ďͿ
ƚŚĞ'ƌŽƵƉŚĂƐŶĞŝƚŚĞƌƚƌĂŶƐĨĞƌƌĞĚŶŽƌƌĞƚĂŝŶĞĚƐƵďƐƚĂŶƟĂůůLJĂůů
the risks and rewards of the asset, but has transferred control
of the asset.
tŚĞŶƚŚĞ'ƌŽƵƉŚĂƐƚƌĂŶƐĨĞƌƌĞĚŝƚƐƌŝŐŚƚƐƚŽƌĞĐĞŝǀĞĐĂƐŚŇŽǁƐ
from an asset or has entered into a pass-through arrangement,
ĂŶĚ ŚĂƐ ŶĞŝƚŚĞƌ ƚƌĂŶƐĨĞƌƌĞĚ ŶŽƌ ƌĞƚĂŝŶĞĚ ƐƵďƐƚĂŶƟĂůůLJ Ăůů ŽĨ
the risks and rewards of the asset nor transferred control of it,
ƚŚĞĂƐƐĞƚŝƐƌĞĐŽŐŶŝƐĞĚƚŽƚŚĞĞdžƚĞŶƚŽĨƚŚĞ'ƌŽƵƉ͛ƐĐŽŶƟŶƵŝŶŐ
involvement in it.
In that case, the Group also recognises an associated liability.
The transferred asset and the associated liability are measured
ŽŶĂďĂƐŝƐƚŚĂƚƌĞŇĞĐƚƐƚŚĞƌŝŐŚƚƐĂŶĚŽďůŝŐĂƟŽŶƐƚŚĂƚƚŚĞ'ƌŽƵƉ
has retained.
FINANCIAL ASSETS CARRIED AT AMORTISED COST
&Žƌ ĮŶĂŶĐŝĂů ĂƐƐĞƚƐ ĐĂƌƌŝĞĚ Ăƚ ĂŵŽƌƟƐĞĚ ĐŽƐƚ͕ƚŚĞ 'ƌŽƵƉ ĮƌƐƚ
assesses whether objective evidence of impairment exists
ŝŶĚŝǀŝĚƵĂůůLJĨŽƌĮŶĂŶĐŝĂůĂƐƐĞƚƐƚŚĂƚĂƌĞŝŶĚŝǀŝĚƵĂůůLJƐŝŐŶŝĮĐĂŶƚ͕
ŽƌĐŽůůĞĐƟǀĞůLJĨŽƌĮŶĂŶĐŝĂůĂƐƐĞƚƐƚŚĂƚĂƌĞŶŽƚŝŶĚŝǀŝĚƵĂůůLJƐŝŐŶŝĮĐĂŶƚ͘/ĨƚŚĞ'ƌŽƵƉĚĞƚĞƌŵŝŶĞƐƚŚĂƚŶŽŽďũĞĐƟǀĞĞǀŝĚĞŶĐĞŽĨ
ŝŵƉĂŝƌŵĞŶƚĞdžŝƐƚƐĨŽƌĂŶŝŶĚŝǀŝĚƵĂůůLJĂƐƐĞƐƐĞĚĮŶĂŶĐŝĂůĂƐƐĞƚ͕
ǁŚĞƚŚĞƌƐŝŐŶŝĮĐĂŶƚŽƌŶŽƚ͕ŝƚŝŶĐůƵĚĞƐƚŚĞĂƐƐĞƚŝŶĂŐƌŽƵƉŽĨ
ĮŶĂŶĐŝĂůĂƐƐĞƚƐǁŝƚŚƐŝŵŝůĂƌĐƌĞĚŝƚƌŝƐŬĐŚĂƌĂĐƚĞƌŝƐƟĐƐĂŶĚĐŽůůĞĐƟǀĞůLJĂƐƐĞƐƐĞƐƚŚĞŵĨŽƌŝŵƉĂŝƌŵĞŶƚ͘ƐƐĞƚƐƚŚĂƚĂƌĞŝŶĚŝǀŝĚƵĂůůLJ
assessed for impairment and for which an impairment loss is,
ŽƌĐŽŶƟŶƵĞƐƚŽďĞ͕ƌĞĐŽŐŶŝƐĞĚĂƌĞŶŽƚŝŶĐůƵĚĞĚŝŶĂĐŽůůĞĐƟǀĞ
assessment of impairment.
/ĨƚŚĞƌĞŝƐŽďũĞĐƟǀĞĞǀŝĚĞŶĐĞƚŚĂƚĂŶŝŵƉĂŝƌŵĞŶƚůŽƐƐŚĂƐďĞĞŶ
ŝŶĐƵƌƌĞĚ͕ƚŚĞĂŵŽƵŶƚŽĨƚŚĞůŽƐƐŝƐŵĞĂƐƵƌĞĚĂƐƚŚĞĚŝīĞƌĞŶĐĞ
between the assets carrying amount and the present value of
ĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐ;ĞdžĐůƵĚŝŶŐĨƵƚƵƌĞĞdžƉĞĐƚĞĚĐƌĞĚŝƚ
losses that have not yet been incurred). The present value of the
ĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐŝƐĚŝƐĐŽƵŶƚĞĚĂƚƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚ͛Ɛ
ŽƌŝŐŝŶĂůĞīĞĐƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞ͘/ĨĂůŽĂŶŚĂƐĂǀĂƌŝĂďůĞŝŶƚĞƌĞƐƚ
rate, the discount rate for measuring any impairment loss is the
ĐƵƌƌĞŶƚĞīĞĐƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞ͘
The carrying amount of the asset is reduced through the use of
an allowance account and the amount of the loss is recognised
ŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘/ŶƚĞƌĞƐƚŝŶĐŽŵĞĐŽŶƟŶƵĞƐƚŽďĞĂĐcrued on the reduced carrying amount and is accrued using the
ƌĂƚĞŽĨŝŶƚĞƌĞƐƚƵƐĞĚƚŽĚŝƐĐŽƵŶƚƚŚĞĨƵƚƵƌĞĐĂƐŚŇŽǁƐĨŽƌƚŚĞ
purpose of measuring the impairment loss. The interest income
ŝƐƌĞĐŽƌĚĞĚĂƐƉĂƌƚŽĨĮŶĂŶĐĞŝŶĐŽŵĞŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘
>ŽĂŶƐƚŽŐĞƚŚĞƌǁŝƚŚƚŚĞĂƐƐŽĐŝĂƚĞĚĂůůŽǁĂŶĐĞĂƌĞǁƌŝƩĞŶŽī
ǁŚĞŶƚŚĞƌĞŝƐŶŽƌĞĂůŝƐƟĐƉƌŽƐƉĞĐƚŽĨĨƵƚƵƌĞƌĞĐŽǀĞƌLJĂŶĚĂůůĐŽůlateral has been realised or has been transferred to the Group. If,
ŝŶĂƐƵďƐĞƋƵĞŶƚLJĞĂƌ͕ƚŚĞĂŵŽƵŶƚŽĨƚŚĞĞƐƟŵĂƚĞĚŝŵƉĂŝƌŵĞŶƚ
ůŽƐƐŝŶĐƌĞĂƐĞƐŽƌĚĞĐƌĞĂƐĞƐďĞĐĂƵƐĞŽĨĂŶĞǀĞŶƚŽĐĐƵƌƌŝŶŐĂŌĞƌ
the impairment was recognised, the previously recognised imƉĂŝƌŵĞŶƚůŽƐƐŝƐŝŶĐƌĞĂƐĞĚŽƌƌĞĚƵĐĞĚďLJĂĚũƵƐƟŶŐƚŚĞĂůůŽǁĂŶĐĞ
ĂĐĐŽƵŶƚ͘/ĨĂĨƵƚƵƌĞǁƌŝƚĞͲŽīŝƐůĂƚĞƌƌĞĐŽǀĞƌĞĚ͕ƚŚĞƌĞĐŽǀĞƌLJŝƐ
ĐƌĞĚŝƚĞĚƚŽĮŶĂŶĐĞĐŽƐƚƐŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ
iii) &ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐ
INITIAL RECOGNITION AND MEASUREMENT
ŽŶƟŶƵŝŶŐŝŶǀŽůǀĞŵĞŶƚƚŚĂƚƚĂŬĞƐƚŚĞĨŽƌŵŽĨĂŐƵĂƌĂŶƚĞĞŽǀĞƌ
the transferred asset is measured at the lower Of the original
carrying amount of the asset and the maximum amount of conƐŝĚĞƌĂƟŽŶƚŚĂƚƚŚĞ'ƌŽƵƉĐŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽƌĞƉĂLJ͘
ii)
/ŵƉĂŝƌŵĞŶƚŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐ
dŚĞ'ƌŽƵƉĂƐƐĞƐƐĞƐĂƚĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞǁŚĞƚŚĞƌƚŚĞƌĞŝƐĂŶLJ
ŽďũĞĐƟǀĞĞǀŝĚĞŶĐĞƚŚĂƚĂĮŶĂŶĐŝĂůĂƐƐĞƚŽƌĂŐƌŽƵƉŽĨĮŶĂŶĐŝĂů
ĂƐƐĞƚƐ ŝƐ ŝŵƉĂŝƌĞĚ͘ ĮŶĂŶĐŝĂů ĂƐƐĞƚ Žƌ Ă ŐƌŽƵƉ ŽĨ ĮŶĂŶĐŝĂů
assets is deemed to be impaired if, and only if, there is objecƟǀĞĞǀŝĚĞŶĐĞŽĨŝŵƉĂŝƌŵĞŶƚĂƐĂƌĞƐƵůƚŽĨŽŶĞŽƌŵŽƌĞĞǀĞŶƚƐ
ƚŚĂƚŚĂƐŽĐĐƵƌƌĞĚĂŌĞƌƚŚĞŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶŽĨƚŚĞĂƐƐĞƚ;ĂŶ
incurred ‘loss event’) and that loss event has an impact on the
ĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐŽĨƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚŽƌƚŚĞŐƌŽƵƉ
ŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐƚŚĂƚĐĂŶďĞƌĞůŝĂďůLJĞƐƟŵĂƚĞĚ͘ǀŝĚĞŶĐĞŽĨ
ŝŵƉĂŝƌŵĞŶƚŵĂLJŝŶĐůƵĚĞŝŶĚŝĐĂƟŽŶƐƚŚĂƚƚŚĞĚĞďƚŽƌƐŽƌĂŐƌŽƵƉ
ŽĨĚĞďƚŽƌƐŝƐĞdžƉĞƌŝĞŶĐŝŶŐƐŝŐŶŝĮĐĂŶƚĮŶĂŶĐŝĂůĚŝĸĐƵůƚLJ͕ĚĞĨĂƵůƚ
or delinquency in interest or principal payments, the probability
ƚŚĂƚƚŚĞLJǁŝůůĞŶƚĞƌďĂŶŬƌƵƉƚĐLJŽƌŽƚŚĞƌĮŶĂŶĐŝĂůƌĞŽƌŐĂŶŝƐĂƟŽŶ
and where observable data indicate that there is a measurable
ĚĞĐƌĞĂƐĞŝŶƚŚĞĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐ͕ƐƵĐŚĂƐĐŚĂŶŐĞƐ
ŝŶĂƌƌĞĂƌƐŽƌĞĐŽŶŽŵŝĐĐŽŶĚŝƟŽŶƐƚŚĂƚĐŽƌƌĞůĂƚĞǁŝƚŚĚĞĨĂƵůƚƐ͘
66
ODEL ANNUAL REPORT
&ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵĂƌĞĐůĂƐƐŝĮĞĚĂƐ
ĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͕ůŽĂŶƐĂŶĚ
ďŽƌƌŽǁŝŶŐƐ͕ŽƌĂƐĚĞƌŝǀĂƟǀĞƐĚĞƐŝŐŶĂƚĞĚĂƐŚĞĚŐŝŶŐŝŶƐƚƌƵŵĞŶƚƐ
ŝŶ ĂŶ ĞīĞĐƟǀĞ ŚĞĚŐĞ͕ ĂƐ ĂƉƉƌŽƉƌŝĂƚĞ͘ dŚĞ 'ƌŽƵƉ ĚĞƚĞƌŵŝŶĞƐ
ƚŚĞĐůĂƐƐŝĮĐĂƟŽŶŽĨŝƚƐĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƚŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͘
ůůĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶŝƟĂůůLJĂƚĨĂŝƌǀĂůƵĞĂŶĚ͕
ŝŶƚŚĞĐĂƐĞŽĨůŽĂŶƐĂŶĚďŽƌƌŽǁŝŶŐƐ͕ĐĂƌƌŝĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚ͘
dŚŝƐŝŶĐůƵĚĞƐĚŝƌĞĐƚůLJĂƩƌŝďƵƚĂďůĞƚƌĂŶƐĂĐƟŽŶĐŽƐƚƐ͘
dŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐŝŶĐůƵĚĞƚƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐ͕
ďĂŶŬŽǀĞƌĚƌĂŌƐ͕ůŽĂŶƐĂŶĚďŽƌƌŽǁŝŶŐƐ͘
SUBSEQUENT MEASUREMENT
dŚĞŵĞĂƐƵƌĞŵĞŶƚŽĨĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĚĞƉĞŶĚƐŽŶƚŚĞŝƌĐůĂƐƐŝĮĐĂƟŽŶĂƐĨŽůůŽǁƐ͗
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
&ŝŶĂŶĐŝĂů ůŝĂďŝůŝƟĞƐ Ăƚ ĨĂŝƌ ǀĂůƵĞ ƚŚƌŽƵŐŚ ƉƌŽĮƚ Žƌ ůŽƐƐ ŝŶĐůƵĚĞ
ĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐŚĞůĚĨŽƌƚƌĂĚŝŶŐĂŶĚĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĚĞƐŝŐŶĂƚĞĚƵƉŽŶŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶĂƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌ
ůŽƐƐ͘&ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƌĞĐůĂƐƐŝĮĞĚĂƐŚĞůĚĨŽƌƚƌĂĚŝŶŐŝĨƚŚĞLJ
are acquired for the purpose of selling in the near term. This
ĐĂƚĞŐŽƌLJŝŶĐůƵĚĞƐĚĞƌŝǀĂƟǀĞĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĞŶƚĞƌĞĚŝŶƚŽ
by the Group that are not designated as hedging instruments in
ŚĞĚŐĞƌĞůĂƟŽŶƐŚŝƉƐĂƐĚĞĮŶĞĚďLJ><^ϯϵ͘^ĞƉĂƌĂƚĞĚĞŵďĞĚĚĞĚ
ĚĞƌŝǀĂƟǀĞƐĂƌĞĂůƐŽĐůĂƐƐŝĮĞĚĂƐŚĞůĚĨŽƌƚƌĂĚŝŶŐƵŶůĞƐƐƚŚĞLJĂƌĞ
ĚĞƐŝŐŶĂƚĞĚĂƐĞīĞĐƟǀĞŚĞĚŐŝŶŐŝŶƐƚƌƵŵĞŶƚƐ͘
'ĂŝŶƐŽƌůŽƐƐĞƐŽŶůŝĂďŝůŝƟĞƐŚĞůĚĨŽƌƚƌĂĚŝŶŐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞ
ŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘dŚĞ'ƌŽƵƉŚĂƐŶŽƚĚĞƐŝŐŶĂƚĞĚĂŶLJĮŶĂŶĐŝĂů
ůŝĂďŝůŝƟĞƐƵƉŽŶŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶĂƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚ
or loss.
LOANS AND BORROWINGS
ŌĞƌŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͕ŝŶƚĞƌĞƐƚďĞĂƌŝŶŐůŽĂŶƐĂŶĚďŽƌƌŽǁŝŶŐƐ
ĂƌĞƐƵďƐĞƋƵĞŶƚůLJŵĞĂƐƵƌĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚƵƐŝŶŐƚŚĞĞīĞĐƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞŵĞƚŚŽĚ͘'ĂŝŶƐĂŶĚůŽƐƐĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞ
ŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚǁŚĞŶƚŚĞůŝĂďŝůŝƟĞƐĂƌĞĚĞƌĞĐŽŐŶŝƐĞĚĂƐǁĞůů
ĂƐƚŚƌŽƵŐŚƚŚĞĞīĞĐƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞŵĞƚŚŽĚ;/ZͿĂŵŽƌƟƐĂƟŽŶ
ƉƌŽĐĞƐƐ͘ŵŽƌƟƐĞĚĐŽƐƚŝƐĐĂůĐƵůĂƚĞĚďLJƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚĂŶLJ
ĚŝƐĐŽƵŶƚŽƌƉƌĞŵŝƵŵŽŶĂĐƋƵŝƐŝƟŽŶĂŶĚĨĞĞƐŽƌĐŽƐƚƐƚŚĂƚĂƌĞ
ĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞ/Z͘dŚĞ/ZĂŵŽƌƟƐĂƟŽŶŝƐŝŶĐůƵĚĞĚŝŶ
ĮŶĂŶĐĞĐŽƐƚƐŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘
DERECOGNITION
ĮŶĂŶĐŝĂůůŝĂďŝůŝƚLJŝƐĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶƚŚĞŽďůŝŐĂƟŽŶƵŶĚĞƌƚŚĞ
ůŝĂďŝůŝƚLJŝƐĚŝƐĐŚĂƌŐĞĚŽƌĐĂŶĐĞůůĞĚŽƌĞdžƉŝƌĞƐ͘tŚĞŶĂŶĞdžŝƐƟŶŐ
ĮŶĂŶĐŝĂůůŝĂďŝůŝƚLJŝƐƌĞƉůĂĐĞĚďLJĂŶŽƚŚĞƌĨƌŽŵƚŚĞƐĂŵĞůĞŶĚĞƌŽŶ
ƐƵďƐƚĂŶƟĂůůLJĚŝīĞƌĞŶƚƚĞƌŵƐ͕ŽƌƚŚĞƚĞƌŵƐŽĨĂŶĞdžŝƐƟŶŐůŝĂďŝůŝƚLJ
ĂƌĞƐƵďƐƚĂŶƟĂůůLJŵŽĚŝĮĞĚ͕ƐƵĐŚĂŶĞdžĐŚĂŶŐĞŽƌŵŽĚŝĮĐĂƟŽŶŝƐ
ƚƌĞĂƚĞĚĂƐĂĚĞƌĞĐŽŐŶŝƟŽŶŽĨƚŚĞŽƌŝŐŝŶĂůůŝĂďŝůŝƚLJĂŶĚƚŚĞƌĞĐŽŐŶŝƟŽŶŽĨĂŶĞǁůŝĂďŝůŝƚLJ͕ĂŶĚƚŚĞĚŝīĞƌĞŶĐĞŝŶƚŚĞƌĞƐƉĞĐƟǀĞ
carrying amounts is recognised in the income statement.
iv) KīƐĞƫŶŐŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ
&ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƌĞŽīƐĞƚĂŶĚƚŚĞŶĞƚ
ĂŵŽƵŶƚ ƌĞƉŽƌƚĞĚ ŝŶ ƚŚĞ ĐŽŶƐŽůŝĚĂƚĞĚ ƐƚĂƚĞŵĞŶƚ ŽĨ ĮŶĂŶĐŝĂů
ƉŽƐŝƟŽŶ ŝĨ͕ ĂŶĚ ŽŶůLJ ŝĨ͕ ƚŚĞƌĞ ŝƐ Ă ĐƵƌƌĞŶƚůLJ ĞŶĨŽƌĐĞĂďůĞ ůĞŐĂů
ƌŝŐŚƚƚŽŽīƐĞƚƚŚĞƌĞĐŽŐŶŝƐĞĚĂŵŽƵŶƚƐĂŶĚƚŚĞƌĞŝƐĂŶŝŶƚĞŶƟŽŶ
ƚŽƐĞƩůĞŽŶĂŶĞƚďĂƐŝƐ͕ŽƌƚŽƌĞĂůŝƐĞƚŚĞĂƐƐĞƚƐĂŶĚƐĞƩůĞƚŚĞ
ůŝĂďŝůŝƟĞƐƐŝŵƵůƚĂŶĞŽƵƐůLJ͘
v)
&ĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ
dŚĞĨĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐƚŚĂƚĂƌĞƚƌĂĚĞĚŝŶĂĐƟǀĞ
ŵĂƌŬĞƚƐĂƚĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞŝƐĚĞƚĞƌŵŝŶĞĚďLJƌĞĨĞƌĞŶĐĞƚŽ
ƋƵŽƚĞĚŵĂƌŬĞƚƉƌŝĐĞƐŽƌĚĞĂůĞƌƉƌŝĐĞƋƵŽƚĂƟŽŶƐ;ďŝĚƉƌŝĐĞĨŽƌ
ůŽŶŐƉŽƐŝƟŽŶƐĂŶĚĂƐŬƉƌŝĐĞĨŽƌƐŚŽƌƚƉŽƐŝƟŽŶƐͿ͕ǁŝƚŚŽƵƚĂŶLJ
ĚĞĚƵĐƟŽŶĨŽƌƚƌĂŶƐĂĐƟŽŶĐŽƐƚƐ͘
&ŽƌĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐŶŽƚƚƌĂĚĞĚŝŶĂŶĂĐƟǀĞŵĂƌŬĞƚ͕ƚŚĞĨĂŝƌ
ǀĂůƵĞŝƐĚĞƚĞƌŵŝŶĞĚƵƐŝŶŐĂƉƉƌŽƉƌŝĂƚĞǀĂůƵĂƟŽŶƚĞĐŚŶŝƋƵĞƐ͘^ƵĐŚ
ƚĞĐŚŶŝƋƵĞƐŵĂLJŝŶĐůƵĚĞ͖
hƐŝŶŐƌĞĐĞŶƚĂƌŵ͛ƐůĞŶŐƚŚŵĂƌŬĞƚƚƌĂŶƐĂĐƟŽŶƐ͖
reference to the current fair value of another instrument that is
ƐƵďƐƚĂŶƟĂůůLJƚŚĞƐĂŵĞ͖
ĂĚŝƐĐŽƵŶƚĞĚĐĂƐŚŇŽǁĂŶĂůLJƐŝƐŽƌŽƚŚĞƌǀĂůƵĂƟŽŶŵŽĚĞůƐ͘
ŶĂŶĂůLJƐŝƐŽĨĨĂŝƌǀĂůƵĞƐŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĂŶĚĨƵƌƚŚĞƌ
details as to how they are measured are provided in Note 23.
Ϯ͘ϰ͘ϭϯ/ŵƉĂŝƌŵĞŶƚŽĨŶŽŶͲĮŶĂŶĐŝĂůĂƐƐĞƚƐ
dŚĞ'ƌŽƵƉĂƐƐĞƐƐĞƐĂƚĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞǁŚĞƚŚĞƌƚŚĞƌĞŝƐĂŶ
ŝŶĚŝĐĂƟŽŶƚŚĂƚĂŶĂƐƐĞƚŵĂLJďĞŝŵƉĂŝƌĞĚ͘/ĨĂŶLJŝŶĚŝĐĂƟŽŶĞdžŝƐƚƐ͕ŽƌǁŚĞŶĂŶŶƵĂůŝŵƉĂŝƌŵĞŶƚƚĞƐƟŶŐĨŽƌĂŶĂƐƐĞƚŝƐƌĞƋƵŝƌĞĚ͕
ƚŚĞ'ƌŽƵƉĞƐƟŵĂƚĞƐƚŚĞĂƐƐĞƚ͛ƐƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚ͘ŶĂƐƐĞƚ͛Ɛ
ƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚŝƐƚŚĞŚŝŐŚĞƌŽĨĂŶĂƐƐĞƚ͛ƐŽƌĐĂƐŚͲŐĞŶĞƌĂƟŶŐ
unit (CGU) fair value less costs to sell and its value in use and
is determined for an individual asset, unless the asset does not
ŐĞŶĞƌĂƚĞĐĂƐŚŝŶŇŽǁƐƚŚĂƚĂƌĞůĂƌŐĞůLJŝŶĚĞƉĞŶĚĞŶƚŽĨƚŚŽƐĞĨƌŽŵ
other assets or groups of assets. Where the carrying amount of
an asset or CGU exceeds its recoverable amount, the asset is conƐŝĚĞƌĞĚŝŵƉĂŝƌĞĚĂŶĚŝƐǁƌŝƩĞŶĚŽǁŶƚŽŝƚƐƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚ͘
/ŶĂƐƐĞƐƐŝŶŐǀĂůƵĞŝŶƵƐĞ͕ƚŚĞĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐĂƌĞ
discounted to their present value using a pre-tax discount rate
ƚŚĂƚƌĞŇĞĐƚƐĐƵƌƌĞŶƚŵĂƌŬĞƚĂƐƐĞƐƐŵĞŶƚƐŽĨƚŚĞƟŵĞǀĂůƵĞŽĨ
ŵŽŶĞLJĂŶĚƚŚĞƌŝƐŬƐƐƉĞĐŝĮĐƚŽƚŚĞĂƐƐĞƚ͘/ŶĚĞƚĞƌŵŝŶŝŶŐĨĂŝƌ
ǀĂůƵĞůĞƐƐĐŽƐƚƐƚŽƐĞůů͕ƌĞĐĞŶƚŵĂƌŬĞƚƚƌĂŶƐĂĐƟŽŶƐĂƌĞƚĂŬĞŶŝŶƚŽ
ĂĐĐŽƵŶƚ͕ŝĨĂǀĂŝůĂďůĞ͘/ĨŶŽƐƵĐŚƚƌĂŶƐĂĐƟŽŶƐĐĂŶďĞŝĚĞŶƟĮĞĚ͕
ĂŶĂƉƉƌŽƉƌŝĂƚĞǀĂůƵĂƟŽŶŵŽĚĞůŝƐƵƐĞĚ͘dŚĞƐĞĐĂůĐƵůĂƟŽŶƐĂƌĞ
ĐŽƌƌŽďŽƌĂƚĞĚďLJǀĂůƵĂƟŽŶŵƵůƟƉůĞƐ͕ƋƵŽƚĞĚƐŚĂƌĞƉƌŝĐĞƐĨŽƌƉƵďlicly traded subsidiaries or other available fair value indicators.
dŚĞ'ƌŽƵƉďĂƐĞƐŝƚƐŝŵƉĂŝƌŵĞŶƚĐĂůĐƵůĂƟŽŶŽŶĚĞƚĂŝůĞĚďƵĚŐĞƚƐ
ĂŶĚĨŽƌĞĐĂƐƚĐĂůĐƵůĂƟŽŶƐǁŚŝĐŚĂƌĞƉƌĞƉĂƌĞĚƐĞƉĂƌĂƚĞůLJĨŽƌĞĂĐŚ
ŽĨƚŚĞ'ƌŽƵƉ͛ƐĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚƐƚŽǁŚŝĐŚƚŚĞŝŶĚŝǀŝĚƵĂůĂƐƐĞƚƐĂƌĞĂůůŽĐĂƚĞĚ͘dŚĞƐĞďƵĚŐĞƚƐĂŶĚĨŽƌĞĐĂƐƚĐĂůĐƵůĂƟŽŶƐĂƌĞ
ŐĞŶĞƌĂůůLJĐŽǀĞƌŝŶŐĂƉĞƌŝŽĚŽĨĮǀĞLJĞĂƌƐ͘&ŽƌůŽŶŐĞƌƉĞƌŝŽĚƐ͕Ă
long term growth rate is calculated and applied to project future
ĐĂƐŚŇŽǁƐĂŌĞƌƚŚĞĮŌŚLJĞĂƌ͘
/ŵƉĂŝƌŵĞŶƚůŽƐƐĞƐŽĨĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ͕ŝŶĐůƵĚŝŶŐŝŵƉĂŝƌment on inventories, are recognised in the income statement
ŝŶƚŚŽƐĞĞdžƉĞŶƐĞĐĂƚĞŐŽƌŝĞƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĨƵŶĐƟŽŶŽĨƚŚĞ
impaired asset, except for a property previously revalued where
ƚŚĞƌĞǀĂůƵĂƟŽŶǁĂƐƚĂŬĞŶƚŽŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘/ŶƚŚŝƐ
case, the impairment is also recognised in other comprehensive
ŝŶĐŽŵĞƵƉƚŽƚŚĞĂŵŽƵŶƚŽĨĂŶLJƉƌĞǀŝŽƵƐĞǀĂůƵĂƟŽŶ͘
For assets excluding goodwill, an assessment is made at each
ƌĞƉŽƌƟŶŐĚĂƚĞĂƐƚŽǁŚĞƚŚĞƌƚŚĞƌĞŝƐĂŶLJŝŶĚŝĐĂƟŽŶƚŚĂƚƉƌĞǀŝously recognised impairment losses may no longer exist or may
ŚĂǀĞĚĞĐƌĞĂƐĞĚ͘/ĨƐƵĐŚŝŶĚŝĐĂƟŽŶĞdžŝƐƚƐ͕ƚŚĞ'ƌŽƵƉĞƐƟŵĂƚĞƐ
ƚŚĞ ĂƐƐĞƚ͛Ɛ Žƌ ĐĂƐŚͲŐĞŶĞƌĂƟŶŐ ƵŶŝƚ͛Ɛ ƌĞĐŽǀĞƌĂďůĞ ĂŵŽƵŶƚ͘ previously recognised impairment loss is reversed only if there
ŚĂƐďĞĞŶĂĐŚĂŶŐĞŝŶƚŚĞĂƐƐƵŵƉƟŽŶƐƵƐĞĚƚŽĚĞƚĞƌŵŝŶĞƚŚĞ
asset’s recoverable amount since the last impairment loss was
recognised. The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable amount, nor exceed
the carrying amount that would have been determined, net of
ĚĞƉƌĞĐŝĂƟŽŶ͕ŚĂĚŶŽŝŵƉĂŝƌŵĞŶƚůŽƐƐďĞĞŶƌĞĐŽŐŶŝƐĞĚĨŽƌƚŚĞ
asset in prior years. Such reversal is recognised in the income
statement unless the asset is carried at a revalued amount, in
ǁŚŝĐŚ ĐĂƐĞ ƚŚĞ ƌĞǀĞƌƐĂů ŝƐ ƚƌĞĂƚĞĚ ĂƐ Ă ƌĞǀĂůƵĂƟŽŶ ŝŶĐƌĞĂƐĞ͘
The following criteria are also applied in assessing impairment
ŽĨƐƉĞĐŝĮĐĂƐƐĞƚƐ͗
2.4.14 Inventories
/ŶǀĞŶƚŽƌŝĞƐĂƌĞƐƚĂƚĞĚĂƚƚŚĞůŽǁĞƌŽĨĐŽƐƚĂŶĚŶĞƚƌĞĂůŝnjĂďůĞ
value. The management primarily determines cost of inventories
ƵƐŝŶŐƚŚĞǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞŵĞƚŚŽĚ͘dŚĞŵĂŶĂŐĞŵĞŶƚĞƐƟŵĂƚĞƐ
ƚŚĞŶĞƚƌĞĂůŝnjĂďůĞǀĂůƵĞŽĨŝŶǀĞŶƚŽƌŝĞƐďĂƐĞĚŽŶĂƐƐĞƐƐŵĞŶƚŽĨ
ƌĞĐĞŝƉƚŽĨĐŽŵŵŝƩĞĚƐĂůĞƐƉƌŝĐĞƐĂŶĚƉƌŽǀŝĚĞĨŽƌĞdžĐĞƐƐĂŶĚ
ŽďƐŽůĞƚĞŝŶǀĞŶƚŽƌŝĞƐďĂƐĞĚŽŶŚŝƐƚŽƌŝĐĂůƵƐĂŐĞ͕ĞƐƟŵĂƚĞĚĨƵƚƵƌĞ
ĚĞŵĂŶĚĂŶĚƌĞůĂƚĞĚƉƌŝĐŝŶŐ͘/ŶĚĞƚĞƌŵŝŶŝŶŐĞdžĐĞƐƐƋƵĂŶƟƟĞƐ͕
ƚŚĞŵĂŶĂŐĞŵĞŶƚĐŽŶƐŝĚĞƌƐƌĞĐĞŶƚƐĂůĞƐĂĐƟǀŝƟĞƐ͕ƌĞůĂƚĞĚŵĂƌŐŝŶ
ĂŶĚŵĂƌŬĞƚƉŽƐŝƟŽŶŝŶŐŽĨŝƚƐƉƌŽĚƵĐƚƐ͘,ŽǁĞǀĞƌ͕ĨĂĐƚŽƌƐďĞLJŽŶĚ
its contract, such as demand levels, technological advances
ĂŶĚƉƌŝĐŝŶŐĐŽŵƉĞƟƟŽŶ͕ĐŽƵůĚĐŚĂŶŐĞĨƌŽŵƉĞƌŝŽĚƚŽƉĞƌŝŽĚ͘
Such factors may require the Group to reduce the value of its
inventories.
ŽƐƚƐŝŶĐƵƌƌĞĚŝŶďƌŝŶŐŝŶŐĞĂĐŚƉƌŽĚƵĐƚƚŽŝƚƐƉƌĞƐĞŶƚůŽĐĂƟŽŶ
ĂŶĚĐŽŶĚŝƟŽŶŝƐĂĐĐŽƵŶƚĞĚĨŽƌĂƐĨŽůůŽǁƐ͗
ͻ
ͻ
Purchase cost on an actual basis
Closing balance of the inventory on weighted average cost.
ODEL ANNUAL REPORT
67
Ϯ͘ϰ͘ϭϱĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐ
Ϯ͘ϰ͘ϭϳWŽƐƚͲĞŵƉůŽLJŵĞŶƚďĞŶĞĮƚƐ
ĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĐŽŵƉƌŝƐĞĐĂƐŚĂƚďĂŶŬƐĂŶĚŽŶŚĂŶĚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐ
with a maturity of three months or less.
&/EE&/dW>Eͳ'Zdh/dz͗
NOTES TO THE FINANCIAL STATEMENT
Year ended 31 March 2014
&ŽƌƚŚĞƉƵƌƉŽƐĞŽĨƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚĐĂƐŚŇŽǁƐ͕ĐĂƐŚ
and cash equivalents consist of cash and short-term deposits as
ĚĞĮŶĞĚĂďŽǀĞ͕ŶĞƚŽĨŽƵƚƐƚĂŶĚŝŶŐďĂŶŬŽǀĞƌĚƌĂŌƐ͘
2.4.16 Provisions
Provisions are recognised when the Group has a present obligaƟŽŶ;ůĞŐĂůŽƌĐŽŶƐƚƌƵĐƟǀĞͿĂƐĂƌĞƐƵůƚŽĨĂƉĂƐƚĞǀĞŶƚ͕ŝƚŝƐƉƌŽďĂďůĞƚŚĂƚĂŶŽƵƞůŽǁŽĨƌĞƐŽƵƌĐĞƐĞŵďŽĚLJŝŶŐĞĐŽŶŽŵŝĐďĞŶĞĮƚƐ
ǁŝůůďĞƌĞƋƵŝƌĞĚƚŽƐĞƩůĞƚŚĞŽďůŝŐĂƟŽŶĂŶĚĂƌĞůŝĂďůĞĞƐƟŵĂƚĞ
ĐĂŶďĞŵĂĚĞŽĨƚŚĞĂŵŽƵŶƚŽĨƚŚĞŽďůŝŐĂƟŽŶ͘
Where the Group expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but
only when the reimbursement is virtually certain. The expense
ƌĞůĂƟŶŐƚŽĂŶLJƉƌŽǀŝƐŝŽŶŝƐƉƌĞƐĞŶƚĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ
net of any reimbursement.
/ĨƚŚĞĞīĞĐƚŽĨƚŚĞƟŵĞǀĂůƵĞŽĨŵŽŶĞLJŝƐŵĂƚĞƌŝĂů͕ƉƌŽǀŝƐŝŽŶƐ
ĂƌĞĚŝƐĐŽƵŶƚĞĚƵƐŝŶŐĂĐƵƌƌĞŶƚƉƌĞͲƚĂdžƌĂƚĞƚŚĂƚƌĞŇĞĐƚƐ͕ǁŚĞƌĞ
ĂƉƉƌŽƉƌŝĂƚĞ͕ƚŚĞƌŝƐŬƐƐƉĞĐŝĮĐƚŽƚŚĞůŝĂďŝůŝƚLJ͘tŚĞƌĞĚŝƐĐŽƵŶƟŶŐ
ŝƐƵƐĞĚ͕ƚŚĞŝŶĐƌĞĂƐĞŝŶƚŚĞƉƌŽǀŝƐŝŽŶĚƵĞƚŽƚŚĞƉĂƐƐĂŐĞŽĨƟŵĞ
ŝƐƌĞĐŽŐŶŝƐĞĚĂƐĂĮŶĂŶĐĞĐŽƐƚ͘
'ƌĂƚƵŝƚLJ ŝƐ Ă ƉŽƐƚ ĞŵƉůŽLJŵĞŶƚ ďĞŶĞĮƚ ƉůĂŶ͘ WƌŽǀŝƐŝŽŶƐ ŚĂǀĞ
ďĞĞŶŵĂĚĞĨŽƌƌĞƟƌĞŵĞŶƚŐƌĂƚƵŝƟĞƐĨƌŽŵƚŚĞĮƌƐƚLJĞĂƌŽĨƐĞƌǀŝĐĞ
ĨŽƌĂůůĞŵƉůŽLJĞĞƐŝŶĐŽŶĨŽƌŵŝƚLJǁŝƚŚ><^ϭϵ͘,ŽǁĞǀĞƌƵŶĚĞƌ
the Gratuity Act No. 12 of 1983, the liability to an employee
ĂƌŝƐĞƐŽŶůLJŽŶĐŽŵƉůĞƟŽŶŽĨĮǀĞLJĞĂƌƐŽĨĐŽŶƟŶƵĞĚƐĞƌǀŝĐĞ͕dŚĞ
Company is liable to pay gratuity in terms of relevant statute. In
ŽƌĚĞƌƚŽŵĞĞƚƚŚŝƐůŝĂďŝůŝƚLJƚŚĞ'ƌŽƵƉƵƐĞƐĂŶĂĐƚƵĂƌŝĂůǀĂůƵĂƟŽŶ
ŵĞƚŚŽĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ><^ϭϵ͘
dŚĞĐŽƐƚŽĨƉƌŽǀŝĚŝŶŐďĞŶĞĮƚƐƵŶĚĞƌŐƌĂƚƵŝƚLJŝƐĚĞƚĞƌŵŝŶĞĚƵƐing the projected unit credit method. Actuarial gains and losses
are recognised in full in the period in which they occur in the
ƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘dŚĞĚĞĮŶĞĚďĞŶĞĮƚůŝĂďŝůŝƚLJ
ĐŽŵƉƌŝƐĞƐƚŚĞƉƌĞƐĞŶƚǀĂůƵĞŽĨƚŚĞĚĞĮŶĞĚďĞŶĞĮƚŽďůŝŐĂƟŽŶ
using a discount rate based on market yields at the end of reƉŽƌƟŶŐƉĞƌŝŽĚŽŶŐŽǀĞƌŶŵĞŶƚďŽŶĚƐŽĨĂƐŝŵŝůĂƌƚĞŶƵƌĞĂƐƚŚĞ
ĞƐƟŵĂƚĞĚƚĞƌŵŽĨƚŚĞŐƌĂƚƵŝƚLJŽďůŝŐĂƟŽŶ͘
Company
3. REVENUE
Group
2014
2013
2014
2013
LKR
LKR
LKR
LKR
4,468,406,242
4,524,468,638
4,468,860,139
985,407
1,338,588
1,237,744
4,469,391,649
4,525,807,227
4,470,097,883
Sale of goods
Sales - local
4,522,465,701
Sales - Exports
4,522,465,701
Less: Sales tax
(44,192,425)
Sales of goods
4,478,273,276
Rental income
Advertising income
Commission income
Service income
dŚĞŐƌĂƚƵŝƚLJďĞŶĞĮƚŽĨƚŚĞ'ƌŽƵƉŝŶƵŶĨƵŶĚĞĚ͘
(44,615,356)
(44,615,356)
(44,192,425)
4,424,776,293
4,481,614,802
4,425,482,527
90,774,054
84,869,738
90,774,054
84,869,738
10,607,578
13,856,166
10,607,578
13,856,166
175,937
138,701
175,937
138,701
11,881,250
9,329,867
11,881,250
9,329,867
4,591,712,096
4, 532, 970, 765
4, 595, 053, 622
4, 533, 676, 999
2014
2013
2014
2013
LKR
LKR
LKR
LKR
DEFINED CONTRIBUTION PLANS
Employees are eligible for Employees’ Provident Fund ContribuƟŽŶƐĂŶĚŵƉůŽLJĞĞƐ͛dƌƵƐƚ&ƵŶĚŽŶƚƌŝďƵƟŽŶƐŝŶůŝŶĞǁŝƚŚƚŚĞ
ƌĞƐƉĞĐƟǀĞƐƚĂƚƵƚĞƐĂŶĚƌĞŐƵůĂƟŽŶƐ͘dŚĞŽŵƉĂŶLJĐŽŶƚƌŝďƵƚĞƐ
12%and 3% of gross emoluments of employees to Employees’
WƌŽǀŝĚĞŶƚ&ƵŶĚĂŶĚŵƉůŽLJĞĞƐ͛dƌƵƐƚ&ƵŶĚƌĞƐƉĞĐƟǀĞůLJ͘
4. OTHER OPERATING INCOME
Profit/(Loss) on disposal of property, plant & equipment
Sundry income
Company
Group
(3,045,629)
6,294,643
(3,045,629)
6,247,192
2,328,944
2,715,780
7,636,935
6,066,251
Unclaimed creditors written back
-
Income on investment
220,717,726
Dividend income
107,998,683
6,700,000
-
327,999,725
5.FINANCE COSTS
-
15,710,423
13,770
220,717,726
6,700,000
-
-
225,309,032
Company
19,027,213
Group
2014
2013
2014
2013
LKR
LKR
LKR
LKR
Interest Expense on Overdrafts
27,685,103
57,203,443
27,685,103
57,203,443
Interest Expenses on Loans & Borrowings
92,209,512
103,306,707
92,209,512
103,306,707
Lease Interest
224,196
372,105
224,196
372,105
120,118,812
160,882,255
120,118,812
160,882,255
6.FINANCE INCOME
Company
Interest income
68
ODEL ANNUAL REPORT
Group
2014
2013
2014
2013
LKR
LKR
LKR
LKR
4,812,813
83,934,478
4,812,813
83,934,478
4,812,813
83,934,478
4,812,813
83,934,478
ODEL ANNUAL REPORT
69
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
ŽŵƉĂŶLJ
7.PROFIT BEFORE TAX
'ƌŽƵƉ
8.1 ZĞĐŽŶĐŝůŝĂƟŽŶďĞƚǁĞĞŶdĂdždžƉĞŶƐĞƐĂŶĚƚŚĞƉƌŽĚƵĐƚŽĨĂĐĐŽƵŶƟŶŐƉƌŽĮƚŵƵůƟƉůŝĞĚďLJƚŚĞƐƚĂƚƵƚŽƌLJƚĂdžƌĂƚĞŝƐĂƐĨŽůůŽǁĞĚ
2014
2013
2014
2013
LKR
LKR
LKR
LKR
Company
ĚŵŝŶŝƐƚƌĂƟŽŶdžƉĞŶƐĞƐ
Directors' emoluments
32,010,000
29,875,000
32,010,000
29,875,000
Depreciation
95,551,905
84,362,680
114,706,218
101,406,760
10,655,944
7,775,289
Amorisation of intangible assets
-
-
ĐĐŽƵŶƟŶŐƉƌŽĮƚďĞĨŽƌĞƚĂdžĨƌŽŵĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ
Personnel costs includes - Gratuity
- EPF & ETF
- Other staff costs
LKR
239,171,457
177,259,774
216,862,868 231,671,419
239,171,457
177,259,774
216,862,868 231,671,419
66,968,008
49,632,737
72,543,412 49,632,737
50,804,115
40,806,674
54,428,078
44,896,192
437,848,892
367,676,319
470,489,387
403,799,358
IncoŵĞƚĂdžƌĂƚĞoĨ10%(2013:10%)
-
-
4,524,187 4,923,493
IncoŵĞƚĂdžƌĂƚĞoĨ20%(2013:20%)
-
-
-
ĚũƵƐƚŵĞŶƚŝŶƌĞƐƉĞĐƚƚŽƵƌƌĞŶƚŝŶĐŽŵĞƚĂdžŽĨƉƌĞǀŝŽƵƐLJĞĂƌ
-
(6,283,546)
1,338,168 (5,804,487)
(4,448)
(4,448)
5,122,706
Audit Fees
1,604,167
1,507,671
2,258,487
2,065,631
IncoŵĞƚĂdžƌĂƚĞoĨ28%(2013: 28%)
TĂdžonĞdžƉoƌƚƐĂlĞƐ@12й;ϮϬϭϯ͗ϭϱйͿ
^ĞůůŝŶŐĂŶĚŝƐƚƌŝďƵƟŽŶdžƉĞŶƐĞƐ
8,630,379
9,610,282
8,630,379
9,610,282
143,025,841
91,177,986
143,025,841
91,186,986
ŽŵƉĂŶLJ
8.INCOME TAX EXPENSE
'ƌŽƵƉ
2013
2014
2013
LKR
LKR
LKR
LKR
140,693
-
Diǀidend Tax
-
57,729,380
14,505,213
;ϲ͕Ϯϴϯ͕ϱϰϲͿ
-
-
1,703,018
EĨĨĞcƚonƚĂdžĂďlĞloƐƐ
18,170,087
AllowĂďlĞEdžƉĞnƐĞƐ
(46,669,808)
(37,891,937)
(48,900,818) (39,271,708)
IncoŵĞĞdžĞŵƉƚĨƌoŵƚĂdž
(93,247,490)
(1,263,718)
(93,352,817) (1,616,596)
NondĞducƚŝďlĞĞdžƉĞnƐĞƐ
54,919,895
47,249,007
60,156,734 50,477,903
-
11,999,854 -
13,457,989
(2,195,562) 14,375,435
ŝǀŝĚĞŶĚdĂdž
2014
hŶĚĞƌͬ;ŽǀĞƌͿƉƌŽǀŝƐŝŽŶ of current taxes in respect of prior year
18,170,087
EĨĨĞcƚondĞĨĞƌƌĞdƚĂdž
(2,327,701)
OƚhĞƌ
-
7,738
26,260 (66,141)
(2,187,008)
64,903,823
24,309,506 74,349,206
-0.91%
36.62%
65,778,258
;ϱ͕ϴϬϰ͕ϰϴϳͿ
11,999,855
-
ĞĨĞƌƌĞĚŝŶĐŽŵĞƚĂdž
Deferred taxation charge /(reǀersalͿ
/ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞͬ;ŝŶĐŽŵĞͿƌĞƉŽƌƚĞĚ
in the income statement
2013
LKR
9,680,208
1,537,486
Current tax expenseŽŶŽƌĚŝŶĂƌLJĂĐƟǀŝƟĞƐĨŽƌƚŚĞLJĞĂƌ
2014
LKR
10,130,289
5,122,706
C Ƶ r r Ğ n t in c Ž m Ğ t a dž
2013
LKR
7,724,659
1,085,486
Marketing & promotions
2014
8,988,907
Donations
Transport cost
Group
(2,327,701Ϳ
13,457,989
;Ϯ͕ϭϵϱ͕ϱϲϮͿ
14,375,435
;Ϯ͕ϭϴϳ͕ϬϬϴͿ
64,903,823
24,309,506
74,349,206
ThĞĞĨĨĞcƚŝǀĞŝncoŵĞƚĂdžƌĂƚĞ
/ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞƌĞƉŽƌƚĞĚƉƌĞǀŝŽƵƐůLJ
32.09%
ϲϰ͕ϵϬϯ͕ϴϮϯϳϰ͕ϯϰϵ͕ϮϬϲ
dƌĂŶƐŝƟŽŶĂůĂĚũƵƐƚŵĞŶƚ
Ͳ /ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞƌĞƉŽƌƚĞĚ
ϲϰ͕ϵϬϯ͕ϴϮϯϳϰ͕ϯϰϵ͕ϮϬϲ
11.21%
Ͳ
^ƚĂƚĞŵĞŶƚŽĨKƚŚĞƌŽŵƉƌĞŚĞŶƐŝǀĞ/ŶĐŽŵĞ
ŽŵƉĂŶLJ
'ƌŽƵƉ
ĞīƌƌĞĚŝŶĐŽŵĞƚĂdžƌĞůĂƚĞĚƚŽŝƚĞŵƐĐŚĂƌŐĞĚ
2014
2013
2014
2013
or credited directly to equity during the year
LKR
LKR
LKR
LKR
Net gain on reǀaluation of building
ĐƚƵĂƌŝĂůŐĂŝŶƐĂŶĚ;ůŽƐƐĞƐͿŽŶĚĞĮŶĞĚďĞŶĞĮƚƉůĂŶs
Income taxĞdžƉĞŶƐĞͬ;ŝŶĐŽŵĞͿƌĞƉŽƌƚĞĚŝŶ
ŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ
70
ODEL ANNUAL REPORT
;Ϯ͕ϯϴϭ͕ϰϳϱͿ
(2,381,475Ϳ
4,691,202
4,691,202
;Ϯ͕ϴϰϲ͕ϵϱϬͿ
;Ϯ͕ϴϰϲ͕ϵϱϬͿ
4,691,202
4,691,202
ODEL ANNUAL REPORT
71
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
8. INCOME TAX EXPENSE (Contd...)
ϵ͘WZKWZdz͕W>EdΘYh/WDEd
8.2 Deferred Tax Assets, Liabilities and Income Tax Relates to the Followings;
ϵ͘ϭŽŵƉĂŶLJ
Balance
ĚĚŝƟŽŶƐ
Balance
ƐĂƚĐƋƵŝƐŝƟŽŶƐΘsĞƌŝĮĐĂƟŽŶŝƐƉŽƐĂůƐŝƐĐĂƌĚĞĚƐĂƚ
Company
Group
Deferred Tax Liability
01-AƉr-1ϯ
ϵ͘ϭ͘ϭ'ƌŽƐƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚƐ
Statement of
Statement of
&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶ&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶ
LKR
At cost
2014
2013
2014
2013
LKR
LKR
LKR
LKR
Land scaping
Building - lease hold
Capital allowances for tax purposes
ZĞǀĂůƵĂƟŽŶŽĨWƌŽƉĞƌƚLJ͕WůĂŶƚĂŶĚƋƵŝƉŵĞŶt
51,780,473
51,309,682
54,128,046
50,493,167
6,196,117
6,196,117
6,196,117
6,196,117
57,976,590
57,505,799
60,324,162
56,689,284
Deferred Tax Assets
DefineĚ Benefit Wlans
Lease Rent
DeferreĚ Revenue
(13,689,833)
(9,289,405)
(15,153,314)
(9,225,242)
(263,306)
(604,109)
(263,306)
(604,109)
(1,416,310)
(2,521,333)
(1,416,310)
(2,521,333)
Tax Losses
Operating lease (Straight line)
-
-
(12,728,338)
(28,097,787)
(10,502,972)
(22,917,820)
(1,969,779)
(12,728,338)
(31,531,048)
(10,502,972)
(22,853,657)
Office equipment
29,878,803
34,587,979
28,793,115
ϯϭͲDĂƌͲϭϰ
LKR
LKR
LKR
LKR
LKR
884,560
-
-
-
-
884,560
92,085,753
-
-
-
-
92,085,753
174,300,396
16,020,769
7,389,744
(2,534,000)
(12,900,225)
182,276,684
Fixtures - other
75,192,805
-
-
-
(37,114,022)
38,078,783
Fixtures - air conditions
12,915,663
-
-
-
(357,496)
12,558,167
Furniture
83,067,960
2,182,285
-
(23,672,241)
65,930,020
1,329,661
-
(1,233,408)
5,527,914
14,507,302
-
(35,531,717)
313,601,866
-
(13,285,823)
21,386,238
Office equipment- other
4,352,017
5,431,661
Shop fittings - fixtures
250,807,967
Shop fittings - mobiles
31,310,545
Motor vehicles
28,805,496
Motor vehicles -lease
Net DeferreĚ Tax LiabilitLJ
dranƐĨerƐ
83,818,314
-
4,718,750
33,835,627
3,361,516
10,328,293
-
-
-
-
39,133,789
-
-
-
4,718,750
759,521,556
114,519,392
28,770,508
(2,534,000)
(124,094,930)
776,182,526
1,491,120,000
162,718,425
0
-
-
1,653,838,425
0
-
-
146,030,000
-
-
1,799,868,425
At valuation
Deferred Tax Liability
Company
Group
Income Statement
Income Statement
Land ͲƚǀĂůƵĂƟŽŶ
Building ͲƚǀĂůƵĂƟŽŶ
2014
2013
2014
2013
LKR
LKR
LKR
LKR
18,933,847
445,194
17,916,896
146,030,000
1,637,150,000
Total Value of Depreciable Assets
162,718,425
-
ĂůĂŶĐ/ŶĐƵƌƌĞĚsĞƌŝĮĐĂƟŽŶŝƐƉŽƐĂůdƌĂŶƐĨĞƌƌĞĚĂůĂŶĐĞ
Capital Allowances for Tax purposes
470,792
9.1.2 In tŚe CŽurƐe ŽĨ CŽnƐtructiŽn
470,792
18,933,847
445,194
AƐ at
during
ƐĂƚ
ϬϭͲƉƌͲϭϯƚŚĞLJĞĂƌ
17,916,896
LKR
LKR
ϯϭͲDĂƌͲϭϰ
LKR
LKR
LKR
LKR
Deferred tax assets
DefineĚ Benefit Wlans
Lease Rent
DeferreĚ Revenue
Operating lease (Straight line)
AccuŵulateĚ tax losses
ĞĨĞƌƌĞĚ/ŶĐŽŵĞdĂdž;/ŶĐŽŵĞͿͬdžƉĞŶƐĞ
72
ODEL ANNUAL REPORT
(2,018,953)
340,803
(1,732,203)
237,300
(1,870,883)
340,803
(1,401,416)
1,105,023
(2,179,773)
1,105,023
(2,179,773)
(2,225,366)
(1,801,180)
(2,225,366)
(1,801,180)
(2,327,701)
13,457,990
9,668
(2,195,561)
Capital work in progress
237,300
1,603,609
dŽtal GrŽƐƐ CarrLJing AŵŽunt
11,967,811
298,662,519
-
-
(306,008,324)
4,622,006
11,967,811
298,662,519
-
-
(306,008,324)
4,622,006
2, 408, 639, 367
575, 900, 336
28,770,508
(2,534,000)
(430,103,255)
2, 580, 672, 957
14,375,435
ODEL ANNUAL REPORT
73
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
9. PROPERTY, PLANT & EQUIPMENT (Contd...)
9. PROPERTY, PLANT & EQUIPMENT (Contd...)
9. 1. 3 Depreciation
At Cost
Balance
Charge for
as at
the year
Disposals
Discarded
Balance
as at
01-Apr-13
31-Mar-14
LKR
9.1.4 Net Book Value
2014
2013
At Cost
LKR
LKR
-
-
Land scaping
Building - lease hold
41,410,242
55,721,601
KĸĐĞĞƋƵŝƉŵĞŶƚ
98,952,315
96,184,893
4,468,981
12,920,046
451,254
862,704
39,862,452
52,351,912
3,563,228
3,240,973
^ŚŽƉĮƫŶŐƐͲĮdžƚƵƌĞƐ
211,913,182
158,187,190
^ŚŽƉĮƫŶŐƐͲŵŽďŝůĞƐ
7,620,336
11,924,914
21,139,980
16,732,458
&ŝdžƚƵƌĞƐͲŽƚŚĞƌ
Land scaping
884,560
-
Building - lease hold
36,364,152
14,311,359
Office equipment
78,115,503
15,636,459
Fixtures - other
62,272,759
4,329,146
Fixtures - air conditions
12,052,959
Furniture
-
-
884,560
-
-
50,675,511
(8,146,993)
83,324,369
-
(32,992,103)
33,609,803
390,595
-
(336,641)
12,106,913
30,716,048
7,264,956
-
(11,913,436)
26,067,569
2,190,688
301,924
-
(527,926)
1,964,687
Shop fittings - fixtures
92,620,777
39,146,913
-
(30,079,006)
101,688,684
Shop fittings - mobiles
19,385,631
2,621,354
-
(8,241,083)
13,765,902
Motor vehicles
12,073,038
5,920,772
-
-
17,993,810
2,988,542
943,750
-
-
3,932,292
349,664,657
90,867,228
Office equipment- other
Motor vehicles -lease
(2,280,600)
(2,280,600)
(92,237,186)
346,014,099
&ƵƌŶŝƚƵƌĞ
KĸĐĞĞƋƵŝƉŵĞŶƚͲŽƚŚĞƌ
DŽƚŽƌǀĞŚŝĐůĞƐ
DŽƚŽƌǀĞŚŝĐůĞƐͲůĞĂƐĞ
385,308
4,684,677
-
385,308
4,684,677
-
786,458
1,730,208
430,168,427
409,856,899
1,653,838,425
1,491,120,000
ƚǀĂůƵĂƟŽŶ
Land
Building
Total Value of Depreciable Assets
ƚǀĂůƵĂƟŽŶ
Building ͲƚǀĂůƵĂƟŽŶ
&ŝdžƚƵƌĞƐͲĂŝƌĐŽŶĚŝƟŽŶƐ
140,960,015
145,644,692
1,794,798,440
1,636,764,692
4,622,006
11,967,811
4,622,006
11,967,811
2,229,588,873
2,058,589,402
5,069,985
-
5,069,985
ϵ͘ϭ͘ϱ/ŶƚŚĞĐŽƵƌƐĞŽĨĐŽŶƐƚƌƵĐƟŽŶƐ
ĂƉŝƚĂůǁŽƌŬŝŶƉƌŽŐƌĞƐƐ
Total Gross Carrying Amount
9.1.6 dŚĞĐŽŵƉĂŶLJƵƐĞƐƚŚĞƌĞǀĂůƵĂƟŽŶŵŽĚĞůŽĨŵĞĂƐƵƌĞŵĞŶƚŽĨůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘dŚĞĐŽŵƉĂŶLJĞŶŐĂŐĞĚĐŚĂƌƚĞƌĞĚǀĂůƵĞƌ
Dͬ^W͘<ĂůƵŐĂůĂŐĞĚĂƌĂΘƐƐŽĐŝĂƚĞƐĂŶĂĐĐƌĞĚŝƚĞĚŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĞƌ͕ƚŽĚĞƚĞƌŵŝŶĞƚŚĞĨĂŝƌǀĂůƵĞŽĨŝƚƐůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘
&ĂŝƌǀĂůƵĞŝƐĚĞƚĞƌŵŝŶĞĚďLJƌĞĨĞƌĞŶĐĞƚŽŵĂƌŬĞƚͲďĂƐĞĚĞǀŝĚĞŶĐĞ͘sĂůƵĂƟŽŶƐĂƌĞďĂƐĞĚŽŶĂĐƟǀĞŵĂƌŬĞƚƉƌŝĐĞƐ͕ĂĚũƵƐƚĞĚĨŽƌĂŶLJ
ĚŝīĞƌĞŶĐĞŝŶƚŚĞŶĂƚƵƌĞ͕ůŽĐĂƟŽŶŽƌĐŽŶĚŝƟŽŶŽĨƚŚĞƐƉĞĐŝĮĐƉƌŽƉĞƌƚLJ͘dŚĞĚĂƚĞŽĨƚŚĞŵŽƐƚƌĞĐĞŶƚƌĞǀĂůƵĂƟŽŶǁĂƐϬϭ^ĞƉƚĞŵďĞƌϮϬϭϮ͘dŚĞƉƌĞǀŝŽƵƐƌĞǀĂůƵĂƟŽŶǁĂƐŽŶϯϭKĐƚŽďĞƌϮϬϬϵ͘
74
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
75
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
ƵŵƵůĂƟǀĞ
ĚĞƉƌĞĐŝĂƟŽŶEĞƚĐĂƌƌLJŝŶŐEĞƚĐĂƌƌLJŝŶŐ
/ĨĂƐƐĞƚƐǁĞƌĞĂŵŽƵŶƚĂŵŽƵŶƚ
C Ž Ɛƚ
Class of asset
Đ a ƌ ƌ ŝĞ d a ƚ Đ Ž Ɛ ƚ
2014
2013
><Z><Z><Z><Z
Building
138,011,529
Land
569,706,011
23,118,604
-
114,892,925
118,343,213
569,706,011
569,706,011
9.1.7 >ĂŶĚĂŶĚďƵŝůĚŝŶŐƐǁŝƚŚĂĐĂƌƌLJŝŶŐǀĂůƵĞŽĨ><Zϭ͕ϱϰϵ͕Ϭϰϭ͕ϭϰϰͬс;ϮϬϭϯͲϭ͕ϰϴϯ͕ϲϴϲ͕ϳϳϭͬͲͿŚĂǀĞďĞĞŶƉůĞĚŐĞĚ
ĂƐƐĞĐƵƌŝƚLJĨŽƌƚĞƌŵůŽĂŶƐŽďƚĂŝŶĞĚ͕ĚĞƚĂŝůƐŽĨǁŚŝĐŚĂƌĞĚŝƐĐůŽƐĞĚŝŶEŽƚĞϮϱ͘
9.1.8 The ĐĂƌƌLJŝŶg value oĨ ŵŽƚŽƌ vehicleƐ undeƌ ĮŶĂŶĐe ůĞĂƐe ĐŽŶƚƌĂĐƚƐ at 31 DĂƌĐh 2014 ǁĂƐ LKR 786,459/с
;ϮϬϭ3 - LKR 1,730,208/с Ϳ. NoĂĚĚŝƟŽŶƐ ĚƵƌŝŶg the LJĞĂƌ ĨŽƌ ŵŽƚŽƌ vehicleƐ undeƌ ĮŶĂŶĐĞůĞĂƐĞĐŽŶƚƌĂĐƚƐ͘>ĞĂƐĞĚĂƐƐĞƚƐĂƌĞ
ƉůĞĚŐĞĚĂƐƐĞĐƵƌŝƚLJĨŽƌƚŚĞƌĞůĂƚĞĚĮŶĂŶĐĞůĞĂƐĞůŝĂďŝůŝƟĞƐ͘
9.1.9 dŚĞĞdžƚĞŶƚĂŶĚƚŚĞůŽĐĂƟŽŶŽĨƚŚĞĞŶƟƚLJ͛ƐůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ;ŽŵƉĂŶLJͿĂƌĞƐŚŽǁŶďĞůŽǁ
ĚĚƌĞƐƐ
>ĂŶĚͬƵŝůĚŝŶŐsĂůƵĂƟŽŶdžƚĞŶƚ
No. 10, Waƌd Place, oloŵďo 07.
Land & Building
Revalued
R 1-P 39.58+R0-P9.91
No. 15, .W.W. Kannangaƌa Maǁatha, oloŵďo 07.
Land
Revalued
R 2-P36.12
No. 21/5, .W.W.Kannangaƌa Maǁatha, oloŵďo 07.
Land
Revalued
P.13.60
No 29A, JaLJathilaka Maǁatha, Panaduƌa
Land & Building
Revalued
R.1 -P 2.16
No.25/2 ,3,5,6 & 6B,.W.W. Kannangaƌa Maǁatha, oloŵďo 07.
Land
ŽƐƚ
P.29.54
amounts
Depreciable
Depreciable
76
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
77
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
ŽŵƉĂŶLJ
10. INTANGIBLE ASSETS
Computer software
ϵ͘Ϯ͘ϲdŚĞŐƌŽƵƉƵƐĞƐƚŚĞƌĞǀĂůƵĂƟŽŶŵŽĚĞůŽĨŵĞĂƐƵƌĞŵĞŶƚŽĨůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘dŚĞŐƌŽƵƉĞŶŐĂŐĞĚĐŚĂƌƚĞƌĞĚǀĂůƵĞƌDͬ^
W͘<ĂůƵŐĂůĂŐĞĚĂƌĂΘƐƐŽĐŝĂƚĞƐĂŶĚDͬ^<͘:͘dŝƐƐĞƌĂ;ŚĂƌƚĞƌĞĚsĂůƵĂƟŽŶ^ƵƌǀĞLJŽƌͿƚŚĞĂĐĐƌĞĚŝƚĞĚŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĞƌƐ͕ƚŽ
ĚĞƚĞƌŵŝŶĞƚŚĞĨĂŝƌǀĂůƵĞŽĨŝƚƐůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘&ĂŝƌǀĂůƵĞŝƐĚĞƚĞƌŵŝŶĞĚďLJƌĞĨĞƌĞŶĐĞƚŽŵĂƌŬĞƚͲďĂƐĞĚĞǀŝĚĞŶĐĞ͘sĂůƵĂƟŽŶƐ
ĂƌĞďĂƐĞĚŽŶĂĐƟǀĞŵĂƌŬĞƚƉƌŝĐĞƐ͕ĂĚũƵƐƚĞĚĨŽƌĂŶLJĚŝīĞƌĞŶĐĞŝŶƚŚĞŶĂƚƵƌĞ͕ůŽĐĂƟŽŶŽƌĐŽŶĚŝƟŽŶŽĨƚŚĞƐƉĞĐŝĮĐƉƌŽƉĞƌƚLJ͘dŚĞ
ĚĂƚĞŽĨƚŚĞŵŽƐƚƌĞĐĞŶƚƌĞǀĂůƵĂƟŽŶǁĂƐϬϭ^ĞƉƚĞŵďĞƌϮϬϭϮ͘dŚĞƉƌĞǀŝŽƵƐƌĞǀĂůƵĂƟŽŶǁĂƐŽŶϯϭKĐƚŽďĞƌϮϬϬϵ͘
'ƌŽƵƉ
2014
2013
2014
2013
LKR
LKR
LKR
LKR
Cost
As at 1 April
-
-
ĚĚŝƟŽŶƐ
-
-
7,269,082
5,473,448
As at 31 March
-
-
56,099,716
48,830,634
As at 1 April
-
-
37,773,451
29,998,162
ŵŽƌƟnjĞĚĚƵƌŝŶŐƚŚĞLJĞĂƌ
-
-
10,655,944
7,775,289
ŝƐƉŽƐĂůƐͬdƌĂŶƐĨĞƌƐ
-
-
As at 31 March
-
-
48,830,634
43,357,186
Amortization
-
-
48,429,395
^ŽŌǁĂƌĞ/ŵƉůĞŵĞŶƚĂƟŽŶ
ŝŶWƌŽŐƌĞƐƐ
68,469,089
dŽƚĂůEĞƚŬǀĂůƵĞ
76,139,410
37,773,451
11,057,183
ŽŵƉĂŶLJ
11. INVESTMENT IN SUBSIDIARIES
'ƌŽƵƉ
2014
2013
2014
2013
й,ŽůĚŝŶŐ
LKR
LKR
LKR
LKR
OdĞl WrŽpĞrtiĞs (Wvt) Ltd.
100%
108,100,000
108,100,000
-
-
OdĞl /ŶĨŽrŵatiŽŶ dĞchŶŽlŽŐy SĞrvicĞs (Wvt) Ltd
100%
10
10
-
-
OdĞl LaŶka (Wvt) Ltd
100%
270,000,020
270,000,020
-
-
OdĞl ApparĞls (Wvt) Ltd
100%
1,000
1,000
-
-
BSL /ŶtĞrŶatiŽŶal (Wvt) Ltd
100%
1,000,000
1,000,000
-
-
GrĞĞŶĨild dradiŶŐ (Wvt) Ltd
100%
ůůŽǁĂŶĐĞĨŽƌ/ŵƉĂŝƌŵĞŶƚŝŶ/ŶǀĞƐƚŵĞŶƚƐŝŶ^ƵďƐŝĚŝĂƌŝĞƐ
12. INVENTORIES
Cost
Cost
&ŝŶŝƐŚĞĚ'ŽŽĚƐ
'ŽŽĚƐŝŶdƌĂŶƐŝƚ
AllŽǁaŶcĞ ĨŽr ŽbsŽlĞtĞ aŶd slŽǁ ŵŽviŶŐ itĞŵs
dŽtal iŶvĞŶtŽriĞs at thĞ lŽǁĞr ŽĨ cŽst aŶd NRV
10
10
379,101,040
379,101,040
-
-
(1,000,000)
378,101,040
(1,000,000)
378,101,040
-
-
ŽŵƉĂŶLJ
-
-
'ƌŽƵƉ
31-03-14
31-03-13
31-03-14
31-03-13
2014
2013
2014
2013
LKR
LKR
LKR
LKR
1,373,991,851
1,202,019,779
1,382,412,343
1,216,138,762
15,494,296
18,713,382
15,494,296
18,713,382
(46,631,081)
(15,986,382)
(46,631,081)
(15,986,382)
1,342,855,066
1,204,746,779
1,351,275,558
1,218,865,762
ƵƌŝŶŐƚŚĞĮŶĂŶĐŝĂůLJĞĂƌ͕ƚŚĞ'ƌŽƵƉĐĂƌƌŝĞĚŽƵƚĂƌĞǀŝĞǁŽĨƚŚĞƌĞĂůŝƐĂďůĞǀĂůƵĞƐŽĨŝƚƐŝŶǀĞŶƚŽƌŝĞƐĂŶĚƚŚĞƌĞǀŝĞǁůĞĚƚŽƚŚĞ
ƌĞĐŽŐŶŝƟŽŶŽĨŝŶǀĞŶƚŽƌŝĞƐǁƌŝƩĞŶĚŽǁŶĂŵŽƵŶƚĞĚƚŽ><ZϮϲ͕ϴϯϴ͕ϯϴϴ;ϮϬϭϯ͗><Zϱ͕ϮϬϳ͕ϱϰϱͿĂƐĂŶĞdžƉĞŶƐĞĂŶĚŝŶĐůƵĚĞĚŝŶ
͞ŽƐƚŽĨ^ĂůĞƐ͟ůŝŶĞŝƚĞŵŝŶƚŚĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚ͘
78
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
79
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
13. TRADE AND OTHER RECEIVABLES
Company
16. DEFERRED LIABILITY
Group
Company
Group
2014
2013
2014
2013
2014
2013
2014
2013
LKR
LKR
LKR
LKR
LKR
LKR
LKR
LKR
16.1 Deferred Revenue
Financial Assets - Loans & Receivables
Trade receivables
16,073,157
37,487,793
16,832,988
37,542,893
Other receivables
30,560,003
17,334,734
30,560,003
17,334,734
As at 1 April
9,004,763
1,219,859
9,004,763
1,219,859
46,633,160
54,822,527
47,392,991
54,877,627
Deferred during the year
8,549,044
10,365,099
8,549,044
10,365,099
(12,495,558)
(2,580,196)
(12,495,558)
(2,580,196)
222,264,198
124,948,880
232,208,049
134,943,743
5,058,249
9,004,763
5,058,249
9,004,763
268,897,358
179,771,407
279,601,040
189,821,370
37,510,613
31,077,829
37,510,613
31,077,829
7,947,737
6,432,785
7,947,737
6,432,785
As at 31 March
45,458,351
37,510,613
45,458,351
37,510,613
Total Deferred Liability
50,516,599
46,515,376
50,516,599
46,515,376
Released to the income statement
Non Financial Assets
Advances, Deposits & Prepayments
Loyalty programe
As at 31 March
16.2 Deferred Expenditure
KƉĞƌĂƟŶŐůĞĂƐĞ
13.1 Trade receivables as at 31st March 2014 & 2013 are outstanding for less than 30 days
As at 1 April
14. OTHER FINANCIAL ASSETS
&ĂŝƌsĂůƵĞƚŚƌŽƵŐŚWƌŽĮƚĂŶĚ>ŽƐƐ
Investment in short term instruments
Company
Charged to the income statement
Group
2014
2013
2014
2013
LKR
LKR
LKR
LKR
2,072,417,726
2,006,700,000
2,072,417,726
2,006,700,000
>ŽĂŶƐĂŶĚZĞĐĞŝǀĂďůĞƐ
^ƚĂīůŽĂŶ
Refundable deposit
Total current
Total Non current
3,783,589
6,219,254
3,783,589
6,219,254
21,642,166
26,519,251
21,642,166
26,519,251
2,097,843,481
2,039,438,505
2,097,843,481
2,039,438,505
2,079,979,997
2,008,684,191
2,079,979,997
2,008,684,191
17,863,484
30,754,314
17,863,484
30,754,314
Company
15. AMOUNTS DUE FROM RELATED PARTIES
Financial Assets - Loans & Receivables
Odel Apparels (Pvt) Ltd
Odel Lanka (Pvt) Ltd
Greenfield Trading (Pvt) Ltd
BSL International (Pvt) Ltd
Less: Provision for doubtful debt - Odel Lanka
Less: Provision for doubtful debt - BSL
Group
2014
2013
2014
2013
LKR
LKR
LKR
LKR
14,594,539
27,317,626
-
-
131,064,025
80,033,821
-
-
136,587
81,649
-
-
4,209,748
2,937,444
-
-
150,004,898
110,370,540
-
-
(65,532,013)
(45,183,055)
-
-
(4,209,748)
(2,937,444)
-
80,263,138
62,250,041
-
-
ƵƌŝŶŐƚŚĞĮŶĂŶĐŝĂůLJĞĂƌ͕ƚŚĞŽŵƉĂŶLJƌĞĐŽŐŶŝƐĞĚĂŶŝŵƉĂŝƌŵĞŶƚůŽƐƐŽĨ><ZϮϭ͕ϲϮϭ͕ϮϲϮͬͲ;ϮϬϭϯ͗><ZϮ͕ϵϯϳ͕ϰϰϰͬͲͿĨŽƌĐĞƌƚĂŝŶ
subsidiaries subsequent to the assessment performed by the management on the net recoverable amount of the subsidiaries.
dŚĞĂƐƐĞƐƐŵĞŶƚǁĂƐŵĂĚĞǁŝƚŚƌĞĨĞƌĞŶĐĞƚŽƚŚĞŶĞƚĂƐƐĞƚƐǀĂůƵĞŽĨƚŚĞƐƵďƐŝĚŝĂƌŝĞƐĂƚƚŚĞĞŶĚŽĨƚŚĞĮŶĂŶĐŝĂůLJĞĂƌǁŚŝĐŚďĞƐƚ
ƌĞƉƌĞƐĞŶƚĞĚƚŚĞŝƌƌĞƐƉĞĐƟǀĞĨĂŝƌǀĂůƵĞůĞƐƐĐŽƐƚƐƚŽƐĞůů͘
80
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
81
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
ϭϳ͘/EdZ^dZ/E'>KE^EKZZKt/E'^;KDWEzͬ'ZKhWͿ
&ŝŶĂŶĐŝĂů>ŝĂďŝůŝƟĞƐͲ
>ŽĂŶƐΘŽƌƌŽǁŝŶŐƐ
ϮϬϭϰ
ZĞƉĂLJĂďůĞ
tŝƚŚŝŶϭLJĞĂƌ
><Z
ϮϬϭϰ
ZĞƉĂLJĂďůĞ
ŌĞƌϭLJĞĂƌ
><Z
Bank loan (17.1)
672,511,084
278,975,852
Lease creditors (17.2)
940,380
Bank overdraft (21.2)
90,146,233
17.1 Bank Loans
ϮϬϭϰ
dŽƚĂů
><Z
951,486,936
-
763,597,696
18. RETIREMENT BENEFIT LIABILITY
278,975,852
-
ϮϬϭϯ
ZĞƉĂLJĂďůĞ
tŝƚŚŝŶϭLJĞĂƌ
><Z
ϮϬϭϯ
ZĞƉĂLJĂďůĞ
ŌĞƌϭLJĞĂƌ
><Z
151,019,712
940,380
1,191,502
90,146,233
90,277,363
1,042,573,549
242,488,577
426,486,792
966,031
427,452,823
ϮϬϭϯ
dŽƚĂů
><Z
577,506,504
2,157,533
90,277,363
669,941,400
Medium Term Project Loans
LKR
33,176,448
30,078,721
37,008,874
33,685,050
8,988,908
7,724,659
10,130,288
9,680,208
Payment made during the year
(1,778,364)
(4,149,774)
(2,175,102)
(4,229,825)
Actuarial loss/ (Gain) on obligation
8,505,267
10,167,680
(2,126,559)
55,131,740
37,008,874
Defined Benefit Obligation as at the end of the year
48,892,259
Current service cost
4,924,794
4,416,000
5,596,704
5,974,854
4,064,114
3,308,659
4,533,584
3,705,354
8,988,908
7,724,659
10,130,288
9,680,208
(151,019,568)
426,486,936
18.2 dŚĞZĞƟƌĞŵĞŶƚďĞŶĞĮƚůŝĂďŝůŝƚLJŽĨKĚĞůW>ŝƐǀĂůƵĞĚďLJDƌ͘WŝLJĂů'ŽŽŶĂƟůůĞŬĞ͕ǁŚŽŝƐĂĨĞůůŽǁŵĞŵďĞƌŽĨƚŚĞƐŽĐŝĞƚLJŽĨ
(1,838,580,027)
951,486,936
ĂĐƚƵĂƌŝĞƐ;h^ͿĂŶĚĂŵĞŵďĞƌŽĨƚŚĞŵĞƌŝĐĂŶĐĂĚĞŵLJŽĨĐƚƵĂƌŝĞƐ͘ĞĮŶĞĚ>ŝĂďŝůŝƚLJŝƐǀĂůƵĞĚĂƐĂƚϯϭƐƚDĂƌĐŚϮϬϭϰĂŶĚƚŚĞ
ƉƌŝŶĐŝƉĂůĂĐƚƵĂƌŝĂůĂƐƐƵŵƉƟŽŶƐƵƐĞĚĂƌĞĂƐĨŽůůŽǁƐ͘
2,212,560,459
ϮϬϭϰ
ZĞƉĂLJĂďůĞ
ŌĞƌϭLJĞĂƌ
><Z
ϮϬϭϰ
dŽƚĂů
><Z
997,857
Finance cost allocated to future period
(57,477)
-
(57,477)
-
940,380
ϮϬϭϯ
ZĞƉĂLJĂďůĞ
tŝƚŚŝŶϭLJĞĂƌ
><Z
1,441,349
ϮϬϭϯ
ZĞƉĂLJĂďůĞ
ŌĞƌϭLJĞĂƌ
><Z
997,856
(249,847)
1,191,502
(31,825)
966,031
ϮϬϭϯ
dŽƚĂů
><Z
ŽŵƉĂŶLJ
2,439,205
(281,672)
>ĞŶĚŝŶŐ/ŶƐƟƚƵƟŽŶzĞĂƌ>ŽĂŶEĂƚƵƌĞŽĨĨĂĐŝůŝƚLJ
ŵŽƵŶƚ
^ĞĐƵƌŝƚLJĞĐƵƌŝƚLJ
Bank of Ceylon
6 Years
Property at 475/32,
<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝLJĂ
KǁŶĞĚďLJKĚĞůWƌŽƉĞƌƟĞƐ;WǀƚͿ>ƚĚ
200Mn
Medium term loan
Medium term loan
Property at 271-271F,
<ĂĚƵǁĂůĂZŽĂĚ͕dŚĂůĂŶŐĂŵĂ͕
ĂƩĂƌĂŵƵůůĂŽǁŶĞĚďLJ
Odel Lanka (Pvt) Ltd
2013
2014
2013
LKR
LKR
LKR
LKR
10% p.a.
12.25 % p.a.
10% p.a.
12.25 % p.a.
10% p.a
10% p.a.
10% p.a
10% p.a.
ǀĞƌĂŐĞZĞƟƌĞŵĞŶƚŐĞ
^ƚĂīƚƵƌŶŽǀĞƌ
ZĞƉĂLJŵĞŶƚdĞƌŵ
Age
20
dƵƌŶŽǀĞƌ
30%
dƵƌŶŽǀĞƌ
3 0%
dƵƌŶŽǀĞƌ
30%
dƵƌŶŽǀĞƌ
30%
25
30%
3 0%
30%
30%
30
20%
2 0%
20%
20%
35
10%
10%
10%
10%
40
5%
5%
5%
5%
45
2%
2%
2%
2%
ZĞƟƌĞŵĞŶƚŐĞ
55 Years
55 Years
55 Years
55 Years
Over a period of 06 years in
59 equal monthly
instalments
ϭϴ͘ϯ^ĞŶƐŝƟǀŝƚLJŽĨƐƐƵŵƉƟŽŶƐŵƉůŽLJĞĚŝŶĐƚƵĂƌŝĂůsĂůƵĂƟŽŶ
dŚĞƐĞŶƐŝƟǀŝƚLJŽĨƚŚĞŽŵƉƌĞŚĞŶƐŝǀĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚĂŶĚƚŚĞ^ƚĂƚĞŵĞŶƚŽĨ&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶŝƐƚŚĞĞīĞĐƚŽĨƚŚĞĂƐƐƵŵĞĚ
ĐŚĂŶŐĞƐŝŶĚŝƐĐŽƵŶƚƌĂƚĞĂŶĚƐĂůĂƌLJŝŶĐƌĞŵĞŶƚƌĂƚĞŽŶƚŚĞƉƌŽĮƚĂŶĚůŽƐƐƐΘĞŵƉůŽLJŵĞŶƚďĞŶĞĮƚŽďůŝŐĂƟŽŶĨŽƌƚŚĞLJĞĂƌ͘
2011 / 2012 / 2013 /2014
200Mn
Medium term loan
Property at 15,
C.W.W Kannangara Mw.
Colombo 07.
57 equal monthly instalments
;ĂƉŝƚĂůͿĂŌĞƌĂŐƌĂĐĞ
period of 03 months
DFCC Bank
2012 / 2013 /2014
96Mn
Medium term loan
Property at 15,
C.W.W Kannangara Mw.
Colombo 07 and
84 equal monthly instalments
;ĐĂƉŝƚĂůͿĂŌĞƌĂŐƌĂĐĞ
period of 12 months from
ƚŚĞĚĂƚĞŽĨĮƌƐƚ
disbursement
Union Bank
2013 / 2014
125Mn
Short term Loan
Property at No.10,
Ward Place, Colombo 07.
3 Months
DFCC Bank
2013 / 2014
100Mn
Short term Loan
Property at No.10,
Ward Place, Colombo 07.
Monthly
Seylan Bank
2013 / 2014
300Mn
Short term Loan
-
2014
Discount rate
2,157,533
DFCC Bank
Ϯϵ͘:ĂLJĂƚŚŝůĂŬĂĂƩĂƌĂŵƵůůĂ
owned by Mawatha Panadura
'ƌŽƵƉ
Salary increment rate
ϭϳ͘ϯdĞƌŵƐŽĨƚŚĞůŽĂŶƐ
275Mn
33,176,448
Interest cost
WƌŝŶĐŝƉĂůĂĐƚƵĂƌŝĂůĂƐƐƵŵƉƟŽŶƐ
940,380
(477,158)
525,000,000
-
ODEL ANNUAL REPORT
LKR
(1,687,560,459)
997,857
82
LKR
2,212,560,459
Future minimum lease payment
,ĂƩŽŶEĂƟŽŶĂůĂŶk 2011 / 2012 / 2013/2014
LKR
LKZ
-
ϮϬϭϰ
ZĞƉĂLJĂďůĞ
tŝƚŚŝŶϭLJĞĂƌ
><Z
2012 / 2013 / 2014
2013
LKZ
ϭϳ͘Ϯ >ŽŶŐƚĞƌŵĮŶĂŶĐĞůĞĂƐĞĐŽŵŵŝƚŵĞŶƚƐ
Net liability
18.1
2014
LKZ
577,506,504
577,506,504
Charge for the year
'ƌŽƵƉ
2013
18.1 Charge for the year
LKZ
-
ĞĮŶĞĚĞŶĞĮƚWůĂŶŽƐƚƐͲ'ƌĂƚƵŝƚLJ
As at the beginning of the year
ϭͲƉƌͲϮϬϭϯKďƚĂŝŶĞĚZĞƉĂŝĚϯϭͲDĂƌͲϮϬϭϰ
Short Term Working Capital Loans
ŽŵƉĂŶLJ
2014
dŚĞĨŽůůŽǁŝŶŐƚĂďůĞĚĞŵŽŶƐƚƌĂƚĞƐƚŚĞƐĞŶƐŝƟǀŝƚLJƚŽĂƌĞĂƐŽŶĂďůLJƉŽƐƐŝďůĞĐŚĂŶŐĞŝŶƚŚĞŬĞLJĂƐƐƵŵƉƟŽŶƐĞŵƉůŽLJĞĚǁŝƚŚĂůů
ŽƚŚĞƌǀĂƌŝĂďůĞƐŚĞůĚĐŽŶƐƚĂŶƚŝŶƚŚĞĞŵƉůŽLJŵĞŶƚďĞŶĞĮƚůŝĂďŝůŝƚLJŵĞĂƐƵƌĞŵĞŶƚ͘
ƐƐƵŵƉƟŽŶƐ
ŝƐĐŽƵŶƚZĂƚĞ
^ĂůĂƌLJ/ŶĐƌĞŵĞŶƚZĂƚĞ
ϭй/ŶĐƌĞĂƐĞϭйĞĐƌĞĂƐĞ
ϭй/ŶĐƌĞĂƐĞϭйĞĐƌĞĂƐĞ
Impact on defined benefit obligation - Company
(3,714,148)
4,246,153
4,533,363
(4,028,143)
Impact on defined benefit obligation - Group
(4,529,328)
5,208,025
5,522,116
(4,878,085)
3 Months
ODEL ANNUAL REPORT
83
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
19. TRADE AND OTHER PAYABLES
Company
'ƌŽƵƉ
23. FINANCIAL ASSETS & LIABILITIES - FAIR VALUES
2014
2013
2014
2013
LKR
LKR
LKR
LKR
23.1 dŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐŝƐŝŶĐůƵĚĞĚĂƚƚŚĞĂŵŽƵŶƚĂƚǁŚŝĐŚƚŚĞŝŶƐƚƌƵŵĞŶƚĐŽƵůĚďĞĞdžĐŚĂŶŐĞĚŝŶ
ĂĐƵƌƌĞŶƚƚƌĂŶƐĂĐƟŽŶďĞƚǁĞĞŶǁŝůůŝŶŐƉĂƌƟĞƐ͕ŽƚŚĞƌƚŚĂŶŝŶĂĨŽƌĐĞĚŽƌůŝƋƵŝĚĂƟŽŶƐĂůĞ͘
dŚĞĨŽůůŽǁŝŶŐŵĞƚŚŽĚƐĂŶĚĂƐƐƵŵƉƟŽŶƐǁĞƌĞƵƐĞĚƚŽĞƐƟŵĂƚĞƚŚĞĨĂŝƌǀĂůƵĞƐ͗
&ŝŶĂŶĐŝĂů>ŝĂďŝůŝƟĞƐ
Trade Payables
262,369,484
265,827,299
297,467,692
265,551,557
Sundry Creditors
127,576,596
133,003,400
127,576,596
133,003,400
389,946,080
398,830,699
425,044,288
398,554,957
EŽŶ&ŝŶĂŶĐŝĂů>ŝĂďŝůŝƟĞƐ
Tax & Accrued Expenses
134,400,612
116,475,524
142,793,325
125,509,775
134,400,612
116,475,524
142,793,325
125,509,775
524,346,692
515,306,223
567,837,613
524,064,732
/ŶǀĞƐƚŵĞŶƚŝŶƐŚŽƌƚƚĞƌŵŝŶƐƚƌƵŵĞŶƚƐ͕ĐĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐ͕ƐƚĂīůŽĂŶƐ͕ƌĞĨƵŶĚĂďůĞĚĞƉŽƐŝƚƐ͕ƚƌĂĚĞƌĞĐĞŝǀĂďůĞƐ͕ƚƌĂĚĞ
ƉĂLJĂďůĞƐĂŶĚŽƚŚĞƌĐƵƌƌĞŶƚůŝĂďŝůŝƟĞƐĂƉƉƌŽdžŝŵĂƚĞƚŚĞŝƌĐĂƌƌLJŝŶŐĂŵŽƵŶƚƐ
dŚĞĨĂŝƌǀĂůƵĞŽĨůŽĂŶƐĨƌŽŵďĂŶŬƐ͕ŽďůŝŐĂƟŽŶƐƵŶĚĞƌĮŶĂŶĐĞůĞĂƐĞƐ͕ĂƐǁĞůůĂƐŽƚŚĞƌŶŽŶͲĐƵƌƌĞŶƚĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐŝƐĞƐƟŵĂƚĞĚ
ďLJĚŝƐĐŽƵŶƟŶŐĨƵƚƵƌĞĐĂƐŚŇŽǁƐƵƐŝŶŐƌĂƚĞƐĐƵƌƌĞŶƚůLJĂǀĂŝůĂďůĞĨŽƌĚĞďƚŽŶƐŝŵŝůĂƌƚĞƌŵƐ͕ĐƌĞĚŝƚƌŝƐŬĂŶĚƌĞŵĂŝŶŝŶŐŵĂƚƵƌŝƟĞƐ͘
^ĞƚŽƵƚďĞůŽǁŝƐĂĐŽŵƉĂƌŝƐŽŶďLJĐůĂƐƐŽĨƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚƐĂŶĚĨĂŝƌǀĂůƵĞŽĨƚŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐƚŚĂƚĂƌĞ
ĐĂƌƌŝĞĚŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘
Carrying Amount
2014
LKR
Interest bearing loans and Borrowings
Company
20. AMOUNTS DUE TO RELATED PARTIES
'ƌŽƵƉ
2014
2013
2014
2013
LKR
LKR
LKR
LKR
&ŝŶĂŶĐŝĂů>ŝĂďŝůŝƟĞƐ
Odel Properties (Pvt) Ltd
Finance Lease
&ůŽĂƟŶŐͬ&ŝdžĞĚZĂƚĞŽƌƌŽǁŝŶŐs
ĂŶŬKǀĞƌĚƌĂŌƐ
-
-
66,762,114
66,767,018
-
-
KĚĞů/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐLJ^ĞƌǀŝĐĞƐ;WǀƚͿ>ƚĚϳ͕ϬϱϮ͕ϬϴϮ
132,028,131
-
-
3,785,883
7,547,250
-
-
77,600,079
206,342,399
-
-
Odel Apparels (Pvt) Ltd
21. CASH AND CASH EQUIVALENTS
ŽŵƉŽŶĞŶƚƐŽĨĂƐŚĂŶĚĂƐŚƋƵŝǀĂůĞŶƚƐ
Company
'ƌŽƵƉ
2013
2014
2013
LKR
LKR
LKR
LKR
2,157,533
577,506,504
9 4 8 ,2 3 1
952,900,516
2,072,497
571,832,756
90,146,233
1,042,573,549
9 0 ,2 7 7 ,3 6 3
6 6 9 ,9 4 1 ,4 0 0
90,146,233
1,043,994,980
90,277,363
664,182,617
>ĞǀĞůϭ͗ƋƵŽƚĞĚ;ƵŶĂĚũƵƐƚĞĚͿƉƌŝĐĞƐŝŶĂĐƟǀĞŵĂƌŬĞƚƐĨŽƌŝĚĞŶƟĐĂůĂƐƐĞƚƐŽƌůŝĂďŝůŝƟĞ s
>ĞǀĞůϮ͗ŽƚŚĞƌƚĞĐŚŶŝƋƵĞƐĨŽƌǁŚŝĐŚĂůůŝŶƉƵƚƐƚŚĂƚŚĂǀĞĂƐŝŐŶŝĮĐĂŶƚĞīĞĐƚŽŶƚŚĞƌĞĐŽƌĚĞĚĨĂŝƌǀĂůƵĞĂƌĞŽďƐĞƌǀĂďůĞ͕ĞŝƚŚĞƌ ĚŝƌĞĐƚůLJŽƌŝŶĚŝƌĞĐƚůLJ
>ĞǀĞůϯ͗ƚĞĐŚŶŝƋƵĞƐƚŚĂƚƵƐĞŝŶƉƵƚƐƚŚĂƚŚĂǀĞĂƐŝŐŶŝĮĐĂŶƚĞīĞĐƚŽŶƚŚĞƌĞĐŽƌĚĞĚĨĂŝƌǀĂůƵĞƚŚĂƚĂƌĞŶŽƚďĂƐĞĚŽŶŽďƐĞƌǀĂďůĞ ŵĂƌŬĞƚĚĂƚĂ
Assets measured at fair value
LKR
38,122,571
108,188,942
40,667,433
109,418,232
38,122,571
108,188,942
40,667,433
109,418,232
(90,146,233)
(90,277,363)
(90,146,233)
(90,277,363)
(52,023,662)
17,911,579
(49,478,800)
19,140,869
2014
EƵŵďĞƌ
Fully Paid Ordinary SŚares
940,380
951,486,936
ƐĂƚϯϭDĂƌĐŚϮϬϭϰ͕ƚŚĞ'ƌŽƵƉŚĞůĚƚŚĞĨŽůůŽǁŝŶŐĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĐĂƌƌŝĞĚĂƚĨĂŝƌǀĂůƵĞŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶ
2014
22.STATED CAPITAL
2013
LKR
EƵŵďĞƌ
2013
LKR
dŚĞ'ƌŽƵƉƵƐĞƐƚŚĞĨŽůůŽǁŝŶŐŚŝĞƌĂƌĐŚLJĨŽƌĚĞƚĞƌŵŝŶŝŶŐĂŶĚĚŝƐĐůŽƐŝŶŐƚŚĞĨĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐďLJǀĂůƵĂƟŽŶƚĞĐŚŶŝƋƵĞ
LKR
272,129,431
2,795,513,620
272,129,431
2,795,513,620
272,129,431
2,795,513,620
272,129,431
2,795,513,620
Level 1
Level 2
Level 3
LKR
LKR
LKR
&ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚĂŶĚůŽƐƐ
/ŶǀĞƐƚŵĞŶƚŝŶƐŚŽƌƚƚĞƌŵŝŶƐƚƌƵŵĞŶƚƐ
21.2 hŶĨĂǀŽƵƌĂďůĞĂƐŚΘĂƐŚƋƵŝǀĂůĞŶƚƐĂůĂŶĐĞ
ank Overdraft
2014
LKR
23.2 Fair value hierarchy
21.1 &ĂǀŽƵƌĂďůĞĂƐŚΘĂƐŚƋƵŝǀĂůĞŶƚƐĂůĂŶĐĞ
CasŚ & ank alances
Fair Value
2013
LKR
2014
2,072,417,726
2,072,417,726
-
-
2013
2,006,700,000
2,006,700,000
-
-
24. EARNINGS PER SHARE
ĂƐŝĐĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞŝƐĐĂůĐƵůĂƚĞĚďLJĚŝǀŝĚŝŶŐƚŚĞŶĞƚƉƌŽĮƚͬ;ůŽƐƐͿĨŽƌƚŚĞLJĞĂƌĂƩƌŝďƵƚĂďůĞƚŽĞƋƵŝƚLJŚŽůĚĞƌƐŽĨƉĂƌĞŶƚďLJ
ƚŚĞǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞŶƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐŽƵƐƚĂŶĚŝŶŐĚƵƌŝŶŐƚŚĞLJĞĂƌ͘dŚĞǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞŶƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐ
ŽƵƚƐƚĂŶĚŝŶŐĚƵƌŝŶŐƚŚĞLJĞĂƌĂŶĚƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌĂƌĞĂĚũƵƐƚĞĚĨŽƌĞǀĞŶƚƐ͕ƚŚĂƚŚĂǀĞĐŚĂŶŐĞĚƚŚĞŶƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐ
ŽƵƚƐƚĂŶĚŝŶŐ͕ǁŝƚŚŽƵƚĂĐŽƌƌĞƐƉŽŶĚŝŶŐĐŚĂŶŐĞŝŶƚŚĞƌĞƐŽƵƌĐĞƐ͘
dŚĞĨŽůůŽǁŝŶŐƌĞŇĞĐƚƐƚŚĞŝŶĐŽŵĞĂŶĚƐŚĂƌĞĚĂƚĂƵƐĞĚŝŶƚŚĞĂƐŝĐƉĞƌ^ŚĂƌĞĐŽŵƉƵƚĂƟŽŶƐ
Amounts used as the numerators:
2014
2013
EĞƚƉƌŽĮƚ
192,553,361
157,322,213
EĞƚƉƌŽĮƚĂƩƌŝďƵƚĂďůĞƚŽŽƌĚŝŶĂƌLJƐŚĂƌĞŚŽůĚĞƌƐĨŽƌďĂƐŝĐĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ
192,553,361
157,322,213
Number of ordinary shares used as denominators:
W e iŐ h ƚ e Ě a ǀ e ƌ a Ő e n Ƶ ŵ ď e ƌ o Ĩ o ƌ Ě in a ƌ LJ s h a ƌ e s in is s Ƶ e a Ɖ Ɖ lic a ď le ƚ o ď a s ic e a ƌ n in Ő s Ɖ e ƌ s h a ƌ e
84
ODEL ANNUAL REPORT
272,129,431
178,051,496
272,129,431
178,051,496
ODEL ANNUAL REPORT
85
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
25. ASSETS PLEDGED
27.1 Transaction with the parent and related entities
Fellow Subsidiaries
2014
LKR
2013
LKR
(95,971,859)
(53,283,988)
Purchase of Goods/Services
(231,578,708)
(266,520,714)
^ĞƩůĞŵĞŶƚŽĨ>ŝĂďŝůŝƟĞƐŽŶďĞŚĂůĨŽĨƚŚĞŽŵƉĂŶLJ
399,955,386
223,832,843
dŚĞĨŽůůŽǁŝŶŐĂƐƐĞƚƐŚĂǀĞďĞĞŶƉůĞĚŐĞĚĂƐƐĞĐƵƌŝƚLJĨŽƌůŝĂďŝůŝƟĞƐ͘
a) Nature of Transaction
>ĞŶĚŝŶŐ/ŶƐƟƚƵƟŽŶzĞĂƌ
>ŽĂŶ
Bank of Ceylon
ϮϳϱDŶDĞĚŝƵŵƚĞƌŵůŽĂŶWƌŽƉĞƌƚLJĂƚϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝLJĂ
KǁŶĞĚďLJKĚĞůWƌŽƉƌƟĞƐ;WǀƚͿ>ƚĚ͘
2012 / 2013/2014
,ĂƩŽŶEĂƟŽŶĂůĂŶŬϮϬϭϭͬϮϬϭϮͬϮϬϭϯͬϮϬϭ4
200Mn
EĂƚƵƌĞŽĨĨĂĐŝůŝƚLJ
Medium term loan
^ĞĐƵƌŝƚLJ
Balance as at 1 April
WƌŽƉĞƌƚLJĂƚϮϳϭͲϮϳϭ&͕<ĂĚƵǁĂůĂZŽĂĚ͕dŚĂůĂŶŐĂŵĂ͕
ĂƩĂƌĂŵƵůůĂŽǁŶĞĚďLJKĚĞů>ĂŶŬĂ;WǀƚͿ>ƚĚ
DFCC Bank
2011 / 2012 / 2013 /2014
ϮϬϬDŶDĞĚŝƵŵƚĞƌŵůŽĂŶWƌŽƉĞƌƚLJĂƚϭϱ͕͘t͘t<ĂŶŶĂŶŐĂƌĂDǁ͘ŽůŽŵďŽϬϳ͘
DFCC Bank
2012 / 2013 /2014
96Mn
Medium term loan
WƌŽƉĞƌƚLJĂƚϭϱ͕͘t͘t<ĂŶŶĂŶŐĂƌĂDǁ͘ŽůŽŵďŽϬϳ
and 29 A,Jayathilaka Mawatha Panadura
Union Bank
2013 / 2014
ϭϮϱDŶ^ŚŽƌƚƚĞƌŵ>ŽĂŶWƌŽƉĞƌƚLJĂƚEŽ͘ϭϬ͕tĂƌĚWůĂĐĞ͕ŽůŽŵďŽϬϳ͘
DFCC Bank
2013 / 2014
ϭϬϬDŶ^ŚŽƌƚƚĞƌŵ>ŽĂŶWƌŽƉĞƌƚLJĂƚEŽ͘ϭϬ͕tĂƌĚWůĂĐĞ͕ŽůŽŵďŽϬϳ͘
Balance as at 31 March
b) Amounts outstanding as receivable or payable as at year end
Amounts Due from
26. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
dŚĞƌĞǁĞƌĞŶŽƐŝŐŶŝĮĐĂŶƚĐĂƉŝƚĂůĐŽŵŵŝƚŵĞŶƚƐĂŶĚĐŽŶƟŶŐĞŶƚůŝĂďŝůŝƟĞƐĂƐŽĨƚŚĞĂůĂŶĐĞƐŚĞĞƚĚĂƚĞĞdžĐĞƉƚĨŽƌƚŚĞ>ĞƩĞƌŽĨ
ĐƌĞĚŝƚƐĞdžĞĐƵƚĞĚĨŽƌ><Zϲϳ͕ϰϯϳ͕Ϭϵϴͬс;h^ϱϭϱ͕ϱϵϳ͘ϱϮͿĨŽƌĨŽƌĞŝŐŶƉƵƌĐŚĂƐĞƐ͘
Odel Properties (Pvt.) Ltd.
Odel Apparels (Pvt) Ltd
Odel Lanka (Pvt) Ltd
Ϯϳ͘Z>dWZdz/^>K^hZ^
dŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŝŶĐůƵĚĞƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ'ƌŽƵƉĂŶĚƚŚĞƐƵďƐŝĚŝĂƌŝĞƐůŝƐƚĞĚŝŶƚŚĞĨŽůůŽǁŝŶŐƚĂďůĞ͗
EĂŵĞ
2014
LKR
2013
LKR
-
27,317,626
131,064,025
80,033,821
2014
LKR
2013
LKR
66,762,114
66,767,018
3,785,883
7,547,250
-
-
7,052,082
-
-
Greenfield Trading (Pvt) Ltd
BSL International (Pvt) Ltd
Amounts Due to
14,594,539
Odel IT Services (Pvt) Ltd
йŽĨĞƋƵŝƚLJŝŶƚĞƌĞƐƚ
(95,971,859)
72,404,819
132,028,131
136,587
81,649
-
-
4,209,748
2,937,444
-
-
ZĞůĂƟŽŶƐŚŝƉϮϬϭϰϮϬϭϯ
Odel Apparels ;PvtͿ >td
Subsidiary
100%
100%
Odel Information Technology Services ; PvtͿ >td
Subsidiary
100%
100%
27.2 Odel PLC entered into a Licensing agreement with Studiotara (Pvt) Ltd,which owns "Embark" trade mark and Otara Del
Odel Properties ; PvtͿ >td
Subsidiary
100%
100%
Odel >anka ; PvtͿ >td
Subsidiary
100%
100%
Gunewardene,who is the sole shareholder of Studiotara (Pvt) Ltd, on 31 January 2013, whereby Odel PLC is Granted Exclusive
rights to use "Embark" trade mark in its products for a nominal sum of Rs.5,000
BS> International ;PvtͿ >td
Subsidiary
100%
100%
Parkson Zetail Asia >imited Malaysia
Significant Investor
dŚĞĨŽůůŽǁŝŶŐƚĂďůĞƉƌŽǀŝĚĞƐƚŚĞƚŽƚĂůĂŵŽƵŶƚŽĨƚƌĂŶƐĂĐƟŽŶƐƚŚĂƚŚĂǀĞďĞĞŶĞŶƚĞƌĞĚŝŶƚŽǁŝƚŚƚŚĞĂďŽǀĞƌĞůĂƚĞĚƉĂƌƟĞƐĨŽƌ
ƚŚĞƌĞůĞǀĂŶƚĮŶĂŶĐŝĂůLJĞĂƌĂŶĚƚŚĞŝŶĨŽƌŵĂƟŽŶƌĞŐĂƌĚŝŶŐŽƵƚƐƚĂŶĚŝŶŐďĂůĂŶĐĞƐĂƚϯϭDĂƌĐŚϮϬϭϰĂŶĚϮϬϭϯ͘
ƵƌŝŶŐƚŚĞƚĞŶƵƌĞŽĨƚŚĞĂŐƌĞĞŵĞŶƚKĚĞůW>ǁŝůůŝŶǀĞƐƚĂƉĞƌĐĞŶƚĂŐĞŽĨƉƌŽĮƚĂƐŵĂLJďĞĚĞĐŝĚĞĚŽŶďLJƚŚĞďŽĂƌĚŽĨĚŝƌĞĐƚŽƌƐ
ŽĨƚŚĞĐŽŵƉĂŶLJĨƌŽŵƟŵĞƚŽƟŵĞŝŶĐŽŶĐƵƌƌĞŶĐĞǁŝƚŚ^ƚƵĚŝŽƚĂƌĂĚĞƌŝǀĞĚĨƌŽŵƚŚĞƐĂůĞŽĨΗŵďĂƌŬΗŵĞƌĐŚĂŶĚŝƐĞŝŶ^Z
ĐĂŵƉĂŝŐŶƐ͕ƉƌŽŵŽƟŽŶƐΘƌĞůĂƚĞĚĂĐƟǀŝƟĞƐĞƚĐ͘ 27.3 Transactions with Key Management Personnel of the Company or its parent
The key management personnel of the Company are the members of its Board of Directors and that of its parent.
a) Key Management Personnel Compensation
^ŚŽƌƚͲƚĞƌŵĞŵƉůŽLJŵĞŶƚďĞŶĞĮƚƐ
b) Other Transactions
Amounts outstanding in respect of Key Management Personnel
86
ODEL ANNUAL REPORT
2014
LKR
2013
LKR
35,190,000
32,425,000
35,190,000
32,425,000
2014
LKR
2013
LKR
-
-
ODEL ANNUAL REPORT
87
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2014
Year ended 31 March 2014
28. OPERATING LEASE COMMITMENTS — Group as Lessee
30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd…)
dŚĞ'ƌŽƵƉŚĂƐĞŶƚĞƌĞĚŝŶƚŽĐŽŵŵĞƌĐŝĂůůĞĂƐĞƐĨŽƌƉƌŽƉĞƌƟĞƐƚŽŽƉĞƌĂƚĞŝƚƐŽƵƚůĞƚŶĞƚǁŽƌŬ͘dŚĞƐĞůĞĂƐĞƐŚĂǀĞĂŶĂǀĞƌĂŐĞůŝĨĞŽĨ
ďĞƚǁĞĞŶϰĂŶĚϴLJĞĂƌƐ͘dŚĞƌĞĂƌĞŶŽƌĞƐƚƌŝĐƟŽŶƐƉůĂĐĞĚƵƉŽŶƚŚĞ'ƌŽƵƉďLJĞŶƚĞƌŝŶŐŝŶƚŽƚŚĞƐĞůĞĂƐĞƐ͘
&ƵƚƵƌĞŵŝŶŝŵƵŵƌĞŶƚĂůƐƉĂLJĂďůĞƵŶĚĞƌŶŽŶͲĐĂŶĐĞůůĂďůĞŽƉĞƌĂƟŶŐůĞĂƐĞƐĂƌĞĂƐĨŽůůŽǁƐ͗
Within one year
ŌĞƌŽŶĞLJĞĂƌďƵƚŶŽƚŵŽƌĞƚŚĂŶĮǀĞLJĞĂƌs
DŽƌĞƚŚĂŶĮǀĞLJĞĂƌs
2014
LKR
2013
LKR
164,455,976
519,244,494
102,780,829
786,481,299
150,580,383
342,454,950
61,550,845
554,586,178
29. DIVIDENDS PAID AND PROPOSED
ĞĐůĂƌĞĚĂŶĚƉĂŝĚĚƵƌŝŶŐƚŚĞLJĞĂƌ:
ŝǀŝĚĞŶĚƐŽŶŽƌĚŝŶĂƌLJƐŚĂƌĞƐ:
&ŝŶĂůĚŝǀŝĚĞŶĚĨŽƌϮϬϭϯ͗ϭϬĐĞŶƚƐƉĞƌƐŚĂƌĞ;ϮϬϭϮ͗ϮϱĐĞŶƚƐƉĞƌƐŚĂƌĞ)
/ŶƚĞƌŝŵĚŝǀŝĚĞŶĚĨŽƌϮϬϭϰ͗ϭϮĐĞŶƚƐƉĞƌƐŚĂƌĞ;ϮϬϭϯ͗ϮϱĐĞŶƚƐƉĞƌƐŚĂƌĞ)
2014
LKR
2013
LKR
Credit risk
ƌĞĚŝƚƌŝƐŬŝƐƚŚĞƌŝƐŬƚŚĂƚĂĐŽƵŶƚĞƌƉĂƌƚLJǁŝůůŶŽƚŵĞĞƚŝƚƐŽďůŝŐĂƟŽŶƐƵŶĚĞƌĂĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚŽƌĐƵƐƚŽŵĞƌĐŽŶƚƌĂĐƚ͕
ůĞĂĚŝŶŐƚŽĂĮŶĂŶĐŝĂůůŽƐƐ͘dŚĞ'ƌŽƵƉŚĂƐŵŝŶŝŵĂůĞdžƉŽƐƵƌĞƚŽĐƌĞĚŝƚƌŝƐŬĨƌŽŵŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐĚƵĞƚŽŶĂƚƵƌĞŽĨďƵƐŝŶĞƐƐ͘
dŚĞƌŝƐŬĨƌŽŵŝƚƐĮŶĂŶĐŝŶŐĂĐƟǀŝƟĞƐ͕ŝŶĐůƵĚŝŶŐĚĞƉŽƐŝƚƐǁŝƚŚďĂŶŬƐĂŶĚĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶƐŝƐŵĂŶĂŐĞĚďLJĚĞĂůŝŶŐǁŝƚŚ
ŝŶƐƟƚƵƟŽŶƐĐĂƌƌLJŝŶŐŚŝŐŚĐƌĞĚŝƚƌĂƟŶŐ͘
Liquidity Risk
dŚĞ'ƌŽƵƉΖƐŽďũĞĐƟǀĞŝƐƚŽŵĂŝŶƚĂŝŶĂďĂůĂŶĐĞďĞƚǁĞĞŶĐŽŶƟŶƵŝƚLJŽĨĨƵŶĚŝŶŐĂŶĚŇĞdžŝďŝůŝƚLJƚŚƌŽƵŐŚƚŚĞƵƐĞŽĨďĂŶŬŽǀĞƌĚƌĂŌƐ͕
ďĂŶŬůŽĂŶƐĂŶĚĮŶĂŶĐĞůĞĂƐĞƐ͘ĐĐĞƐƐƚŽƐŽƵƌĐĞƐŽĨĨƵŶĚŝŶŐŝƐƐƵĸĐŝĞŶƚůLJĂǀĂŝůĂďůĞĂŶĚĚĞďƚŵĂƚƵƌŝŶŐǁŝƚŚŝŶϭϮŵŽŶƚŚƐĐĂŶďĞ
ƌĞĮŶĂŶĐĞĚǁŝƚŚĞdžŝƐƟŶŐůĞŶĚĞƌƐ͘
dŚĞƚĂďůĞďĞůŽǁƐƵŵŵĂƌŝƐĞƐƚŚĞŵĂƚƵƌŝƚLJƉƌŽĮůĞŽĨƚŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐďĂƐĞĚŽŶĐŽŶƚƌĂĐƚƵĂůƵŶĚŝƐĐŽƵŶƚĞĚ
payments
Company
27,212,943
32,655,532
59,868,475
36,237,500
36,237,500
72,475,000
Year ended 31 March 2014
On demand
Interest-bearing loans and borrowings
Bank Overdrafts
&ŝŶĂůĚŝǀŝĚĞŶĚŽĨϭϮĐĞŶƚƐƉĞƌƐŚĂƌĞĨŽƌϮϬϭϰ;ŶŽƚƌĞĐŽŐŶŝƐĞĚĂƐĂůŝĂďŝůŝƚLJĂƐĂƚϯϭDĂƌĐŚͿŚĂƐďĞĞŶĚĞĐůĂƌĞĚŽŶϮϵƚŚDĂLJϮϬϭϰ͘
Final dividend for 2013: XXXXX cents per share (2012: XXXX cents per share)
.
dŚĞ'ƌŽƵƉ͛ƐƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚŽǀĞƌƐĞĞƐƚŚĞŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞĮŶĂŶĐŝĂůƌŝƐŬƐ͘dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐƌĞǀŝĞǁƐĂŶĚĂŐƌĞĞƐ
ƉŽůŝĐŝĞƐĨŽƌŵĂŶĂŐŝŶŐĞĂĐŚŽĨƚŚĞƐĞƌŝƐŬƐǁŚŝĐŚĂƌĞƐƵŵŵĂƌŝnjĞĚďĞůŽǁ͘
Year ended 31 March 2013
Interest-bearing loans and borrowings
Bank Overdrafts
Interest rate risk
INTEREST RATE SENSITIVITY
dŚĞĨŽůůŽǁŝŶŐƚĂďůĞĚĞŵŽŶƐƚƌĂƚĞƐƚŚĞƐĞŶƐŝƟǀŝƚLJƚŽĂƌĞĂƐŽŶĂďůLJƉŽƐƐŝďůĞĐŚĂŶŐĞŝŶŝŶƚĞƌĞƐƚƌĂƚĞƐŽŶƚŚĂƚƉŽƌƟŽŶŽĨůŽĂŶƐĂŶĚ
ďŽƌƌŽǁŝŶŐƐ͘tŝƚŚĂůůŽƚŚĞƌǀĂƌŝĂďůĞƐŚĞůĚĐŽŶƐƚĂŶƚ͕ƚŚĞ'ƌŽƵƉ͛ƐƉƌŽĮƚďĞĨŽƌĞƚĂdžŝƐĂīĞĐƚĞĚƚŚƌŽƵŐŚƚŚĞŝŵƉĂĐƚŽŶŇŽĂƟŶŐƌĂƚĞ
ďŽƌƌŽǁŝŶŐƐ͕ĂƐĨŽůůŽǁƐ͗
Effect on profit
before tax
Loan Interest
+100
;5,647,546)
Loan Interest
-100
5,647,546
110,394,093
278,975,859
Total
952,427,316
90,146,233
389,946,080
90,146,233
953,003,444
110,394,093
278,975,859
On demand
Less than
3 months
3 to 12
months
1 to 5
years
38,127,750
114,109,549
-
-
90,277,363
425,144,133
1,432,519,630
Year ended 31 March 2014
> 5 years
Total
2,282,629
579,664,062
-
-
-
-
90,277,363
381,396,152
13,329,359
4,105,186
-
398,830,696
90,277,363 419,523,902
127,438,908
429,249,319
2,282,629
1,068,772,121
Less than
3 months
3 to 12
months
1 to 5
years
563,057,364
110,394,093
278,975,859
-
Group
.
On demand
Interest-bearing loans and borrowings
Bank Overdrafts
Increase/ decrease in
basis points
563,057,364
> 5 years
.
Trade and other payables
/ŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬŝƐƚŚĞƌŝƐŬƚŚĂƚƚŚĞĨĂŝƌǀĂůƵĞŽƌĨƵƚƵƌĞĐĂƐŚŇŽǁƐŽĨĂĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚǁŝůůŇƵĐƚƵĂƚĞďĞĐĂƵƐĞŽĨĐŚĂŶŐĞƐŝŶ
ŵĂƌŬĞƚŝŶƚĞƌĞƐƚƌĂƚĞƐ͘dŚĞ'ƌŽƵƉ͛ƐĞdžƉŽƐƵƌĞƚŽƚŚĞƌŝƐŬŽĨĐŚĂŶŐĞƐŝŶŵĂƌŬĞƚŝŶƚĞƌĞƐƚƌĂƚĞƐĂƌŝƐĞĚƵĞƚŽƚŚĞďŽƌƌŽǁŝŶŐƐǁŝƚŚ
ŇŽĂƟŶŐŝŶƚĞƌĞƐƚƌĂƚĞƐ͘dŚĞŵŽǀĞŵĞŶƚŽĨƌĂƚĞƐĂƌĞĐůŽƐĞůLJŵŽŶŝƚŽƌĞĚĂŶĚƌĞĮŶĂŶĐŝŶŐŽƉƟŽŶƐĂƌĞĂǀĂŝůĂďůĞƚŽŵĂŶĂŐĞƚŚŝƐƌŝƐŬ͘
1 to 5
years
389,946,080
dŚĞ'ƌŽƵƉ͛ƐƉƌŝŶĐŝƉĂůĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĐŽŵƉƌŝƐĞůŽĂŶƐĂŶĚďŽƌƌŽǁŝŶŐƐĂŶĚƚƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐ͘dŚĞŵĂŝŶƉƵƌƉŽƐĞŽĨ
ƚŚĞƐĞĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐŝƐƚŽĮŶĂŶĐĞƚŚĞ'ƌŽƵƉ͛ƐŽƉĞƌĂƟŽŶƐ͘
dŚĞ'ƌŽƵƉŚĂƐůŽĂŶΘƌĞĐĞŝǀĂďůĞƐ͕ƚƌĂĚĞĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ͕ĂŶĚĐĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐƚŚĂƚĂƌĞĚĞƌŝǀĞĚĚŝƌĞĐƚůLJĨƌŽŵ
ŝƚƐŽƉĞƌĂƟŽŶƐ͘
3 to 12
months
90,146,233
Trade and other payables
30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Less than
3 months
> 5 years
952,427,316
90,146,233
Trade and other payables
Total
90,146,233
425,044,288
425,044,288
90,146,233
988,101,652
110,394,093
278,975,859
On demand
Less than
3 months
3 to 12
months
1 to 5
years
> 5 years
Total
114,109,549
425,144,133
2,282,629
579,664,062
2014
-
1,467,617,837
.
Year ended 31 March 2013
2013
Interest-bearing loans and borrowings
Loan Interest
+100
;6,683,756)
Bank Overdrafts
Loan Interest
-100
6,683,756
Trade and other payables
90,277,363
38,127,750
-
-
-
90,277,363
381,120,407
13,329,359
4,105,186
-
398,554,951
90,277,363 419,248,157
127,438,908
429,249,319
-
-
2,282,629
1,068,496,376
dŚĞĂƐƐƵŵĞĚŵŽǀĞŵĞŶƚŝŶďĂƐŝƐƉŽŝŶƚƐĨŽƌŝŶƚĞƌĞƐƚƌĂƚĞƐĞŶƐŝƟǀŝƚLJĂŶĂůLJƐŝƐŝƐďĂƐĞĚŽŶƚŚĞĐƵƌƌĞŶƚůLJŽďƐĞƌǀĂďůĞŵĂƌŬĞƚ
ĞŶǀŝƌŽŶŵĞŶƚ͕ƐŚŽǁŝŶŐĂƐŝŐŶŝĮĐĂŶƚůLJŚŝŐŚĞƌǀŽůĂƟůŝƚLJƚŚĂŶŝŶƉƌŝŽƌLJĞĂƌƐ͘
88
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
89
NOTES TO THE FINANCIAL STATEMENTS
SHAREHOLDER & INVESTOR INFORMATION
Year ended 31 March 2014
Year ended 31 March 2014
Capital management
1. SHAREHOLDERS
dŚĞ'ƌŽƵƉΖƐKďũĞĐƟǀĞƐǁŚĞŶŵĂŶĂŐŝŶŐĐĂƉŝƚĂůĂƌĞƚŽƐĂĨĞŐƵĂƌĚƚŚĞĞŶƟƚLJΖƐĂďŝůŝƚLJƚŽĐŽŶƟŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͕ƐŽƚŚĂƚŝƚĐĂŶ
ĐŽŶƟŶƵĞƚŽƉƌŽǀŝĚĞƌĞƚƵƌŶĨŽƌƐŚĂƌĞŚŽůĚĞƌƐĂŶĚďĞŶĞĮƚĨŽƌŽƚŚĞƌƐƚĂŬĞŚŽůĚĞƌƐĂŶĚƚŽƉƌŽǀŝĚĞĂŶĂĚĞƋƵĂƚĞƌĞƚƵƌŶƚŽƐŚĂƌĞŚŽůĚĞƌƐďLJƉƌŝĐŝŶŐƉƌŽĚƵĐƚƐĂŶĚƐĞƌǀŝĐĞƐĐŽŵŵĞŶƐƵƌĂƚĞůLJǁŝƚŚƚŚĞůĞǀĞůŽĨƌŝƐŬ
There were 6,483 (2013 – 6,981) Ordinary shareholders as at 31st March 2014, distributed into different categories as follows:
Share Analysis at 31st March 2014
dŚĞ'ƌŽƵƉƐĞƚƐƚŚĞĂŵŽƵŶƚŽĨĐĂƉŝƚĂůŝŶƉƌŽƉŽƌƟŽŶƚŽƌŝƐŬ͘dŚĞ'ƌŽƵƉŵĂŶĂŐĞƐƚŚĞĐĂƉŝƚĂůƐƚƌƵĐƚƵƌĞĂŶĚŵĂŬĞƐĂĚũƵƐƚŵĞŶƚƐƚŽ
ŝƚŝŶƚŚĞůŝŐŚƚŽĨĐŚĂŶŐĞƐŝŶĞĐŽŶŽŵŝĐĐŽŶĚŝƟŽŶƐĂŶĚƌŝƐŬĐŚĂƌĂĐƚĞƌŝƐƟĐƐŽĨƚŚĞƵŶĚĞƌůLJŝŶŐĂƐƐĞƚƐ͘/ŶŽƌĚĞƌƚŽŵĂŝŶƚĂŝŶŽƌĂĚũƵƐƚ
ƚŚĞĐĂƉŝƚĂůƐƚƌƵĐƚƵƌĞ͕ƚŚĞ'ƌŽƵƉŵĂLJĂĚũƵƐƚƚŚĞĂŵŽƵŶƚŽĨĚŝǀŝĚĞŶĚƐƉĂŝĚƚŽƐŚĂƌĞŚŽůĚĞƌƐ͕ƌĞƚƵƌŶĐĂƉŝƚĂůƚŽƐŚĂƌĞŚŽůĚĞƌƐ͕ŝƐƐƵĞ
ŶĞǁƐŚĂƌĞƐŽƌƐĞůůĂƐƐĞƚƐƚŽƌĞĚƵĐĞĚĞďƚ͘
No. of shares
1 - 1,000
1,001 - 10,000
31. EVENTS OCCURRING AFTER THE REPORTING DATE
dŚĞƌĞŚĂǀĞďĞĞŶŶŽŵĂƚĞƌŝĂůĞǀĞŶƚƐŽĐĐƵƌƌŝŶŐĂŌĞƌƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞƚŚĂƚƌĞƋƵŝƌĞĂĚũƵƐƚŵĞŶƚƐƚŽŽƌĚŝƐĐůŽƐƵƌĞŝŶƚŚĞĮŶĂŶĐŝĂů
ƐƚĂƚĞŵĞŶƚƐŽƚŚĞƌƚŚĂŶĨŽƌƚŚĞŝŶĨŽƌŵĂƟŽŶĚŝƐĐůŽƐĞĚŝŶEŽƚĞϮϵŽĨdŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͘
No. of Holders
No. of shares
Holdings %
5,590
1,594,418
0.58
774
2,475,720
0.91
10,001 - 100,000
96
2,565,962
0.95
100,001 - 1,000,000
17
4,920,134
1.81
6
260,573,197
95.75
6,483
272,129,431
100
No. of shares
Holdings %
Over 1,000,000
Total
Category
No. of Holders
Individuals
6,320
133,988,452
49.81
/ŶƐƟƚƵƟŽŶƐ
163
138,140,979
50.19
Total
6,483
272,129,431
100
Residents
6,445
135,556,726
49.81
38
136,572,705
50.19
6,483
272,129,431
100
Non-residents
Total
Percentage of shares held by public – 7.98%.
Percentage of shares held by the Directors together with the members of their families – 30%
90
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
91
SHAREHOLDER & INVESTOR INFORMATION
Year ended 31 March 2014
2. TWENTY LARGEST SHAREHOLDERS - ORDINARY SHARES AT 31ST MARCH 2014
FORM OF PROXY
No.
Name
No. of Shares
Percentage %
1
Parkson Retail Asia Limited
2
3
4
Dr. T. Senthilverl
ϱ
EŽƌƚŚĞƌŶdƌƵƐƚŽŵƉĂŶLJ^ͬ,EKƉƉŽƌƚƵŶŝƟĞƐDĂƐƚĞƌ&ƵŶĚ͕^W
ϰ͕ϲϬϲ͕ϵϲϳ
ϭ͘ϲϵ
ϲ
WĞƌƐŚŝŶŐ>>^ͬŚĂŵďĞƌƐ^ƚƌĞĞƚ'ůŽďĂů&ƵŶĚ͕>W
ϭ͕ϰϲϳ͕ϰϭϬ
Ϭ͘ϱϰ
7
Mr. R.H. Gunewardene
ϴ
,^/Ed>EŽŵ>ƚĚͲ,ͲDĂƚŚĞǁƐŵĞƌŐŝŶŐƐŝĂ&ƵŶĚ
9
Mrs. E.B.H.A. Perera / Mr D.C. De L ST. D Perera
527,000
0.19
10
Mr.G.C.S.Ramanayake/Mrs.K.M.Ramanayake
521,368
0.19
ϭϭ
DĞƌĐĂŶƟůĞ/ŶǀĞƐƚŵĞŶƚĂŶĚ&ŝŶĂŶĐĞW>
12
Tangerine Tours (Pvt) Limited
ϭϯ
&ŝƌƐƚĂƉŝƚĂůDĂƌŬĞƚƐ>ŝŵŝƚĞĚͬDƌ/͘W͘'ĂůŚĞŶĂŐĞ
14
Bank of Ceylon No.1 Account
197,400
0.07
15
Dee Investments (Pvt) Ltd
190,400
0.07
129,150,864
47.46
Ms. O.D, Gunewardene
80,833,100
29.70
Mr. A.D. Gunewardene
39,416,900
14.48
5,097,956
1.87
1,000,000
ϲϬϱ͕ϴϲϳ
ϯϬϬ͕ϬϬϬ
0.37
225,600
ϮϬϬ͕ϬϬϬ
Ϭ͘ϮϮ
180,000
Ϭ͘Ϭϳ
16
Mr. M.M Salahudeen
ϭϳ
DƌƐ͘&͘^͘^ĂďƌLJ
18
Mr. Valabji
150,200
0.06
19
Gold Investment Limited
150,200
0.06
20
Mr. Dabah
150,200
0.06
ϭϲϮ͕ϬϬϬ
3. Dividends and Market Value
2014
2013
Dividends per share
24 Cents
35 Cents
Dividend pay out
34%
40%
Net asset value per share
Rs. 19.18
Rs. 18.72
Share Price (Rs.)
31st March 2014
31st March 2013
As at the end of the year
19.30
21.00
Highest price traded
28.10
26.90
Lowest price traded
18.10
16.00
0.07
Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞ
Ms. Otara Del Gunewardene
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ
Mr. Paul Topping
Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞLJ/ŐŶĂƟƵƐWĞƌĞƌĂ
Dƌ͘zŚŐĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐ
Mr. Tiang Chee Sung
Ms. Wong Siew Chuan
Dƌ͘,ĂŵŝĚ'ŚĂnjĂůŝ,ƵƐƐĂŝŶ (Alternate to Director Mr. Paul Topping)
ŽĨŽůŽŵƌĨĂŝůŝŶŐŚŝŵ
of Colombo or failing her
ŽĨŽůŽŵƌĨĂŝůŝŶŐŚŝŵ
of Colombo or failing him
ŽĨŽůŽŵƌĨĂŝůŝŶŐŚŝŵ
ŽĨDĂůĂLJƐŝĂŽƌĨĂŝůŝŶŐŚŝŵ
of Malaysia or failing him
of Malaysia or failing her
ŽĨŽůŽŵƌĨĂŝůŝŶŐŚŝŵ
Mr/Ms ............……....................………............……..........................................………(please indicate full name) bearing NIC No.
……….…………………... of……………...……………………………………… …………………………………………………..as my/*our Proxy to represent
ŵĞͬΎƵƐĂŶĚƚŽǀŽƚĞĂƐŝŶĚŝĐĂƚĞĚďĞůŽǁŽŶŵLJͬΎŽƵƌďĞŚĂůĨĂƚƚŚĞŶŶƵĂů'ĞŶĞƌĂůDĞĞƟŶŐŽĨƚŚĞŽŵƉĂŶLJƚŽďĞŚĞůĚŽŶƚŚĞϵ
^ĞƉƚĞŵďĞƌϮϬϭϰĂŶĚĂƚĂŶLJĂĚũŽƵƌŶŵĞŶƚƚŚĞƌĞŽĨĂŶĚĂƚĞǀĞƌLJƉŽůůǁŚŝĐŚŵĂLJďĞƚĂŬĞŶŝŶĐŽŶƐĞƋƵĞŶĐĞŽĨƚŚĞĂĨŽƌĞƐĂŝĚDĞĞƟŶŐ͘
Ϭ͘ϭϭ
0.08
I/We*............……....................………...……..........................................………(please indicate full name) bearing NIC No. ……….…………...
of ..........................……………...................................………………. being a member/*members of Odel PLC hereby appoint
Ϭ͘Ϭϲ
FOR
AGAINST
1. To receive and consider the Annual Report of the Board
ŽĨŝƌĞĐƚŽƌƐŽŶƚŚĞ^ƚĂƚĞŽĨīĂŝƌƐŽĨƚŚĞŽŵƉĂŶLJĂŶĚ
the Audited Consolidated Financial Statements for the year ended
31stMarch 2014 with the Report of the Auditors thereon.
Ϯ͘dŽƌĞͲĞůĞĐƚDƌ͘zŚŐ͕ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽ
ƌƟĐůĞϮϯ;ϮͿŽĨƚŚĞƌƟĐůĞƐŽĨƐƐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶLJ͘
ϯ͘dŽƌĞͲĞůĞĐƚDƌ͘dŝĂŶŐŚĞĞ^ƵŶŐĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿ
ŽĨƚŚĞƌƟĐůĞƐŽĨƐƐĐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶLJ͘
ϰ͘dŽƌĞͲĞůĞĐƚDƐ͘tŽŶŐ^ŝĞǁŚƵĂŶĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿ
ŽĨƚŚĞƌƟĐůĞƐŽĨƐƐĐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶLJ͘
5. To re-appoint M/s. Ernst & Young, Chartered Accountants
As Auditors to the Company and authorise the Directors to
ĚĞƚĞƌŵŝŶĞƚŚĞŝƌƌĞŵƵŶĞƌĂƟŽŶ͘
ϲ͘dŽĂƵƚŚŽƌŝƐĞƚŚĞŝƌĞĐƚŽƌƐƚŽĚĞƚĞƌŵŝŶĞĐŽŶƚƌŝďƵƟŽŶƐƚŽĐŚĂƌŝƟĞƐ͘
As witness my/our hand/this …………………. day of ………….. Two Thousand and Fourteen.
Signature ……….……...................…………
Note:
/ŶƐƚƌƵĐƟŽŶƐ ĂƐ ƚŽ ĐŽŵƉůĞƟŽŶ ĂƉƉĞĂƌ ŽŶ ƚŚĞ ƌĞǀĞƌƐĞ ŚĞƌĞƚŽ͘ WůĞĂƐĞ ĚĞůĞƚĞ ƚŚĞ ŝŶĂƉƉƌŽƉƌŝĂƚĞ ǁŽƌĚƐ͕ ĂŶĚ ŵĂƌŬ ͚y͛ ŝŶ ƚŚĞ
ĂƉƉƌŽƉƌŝĂƚĞĐĂŐĞƐƚŽŝŶĚŝĐĂƚĞLJŽƵƌŝŶƐƚƌƵĐƟŽŶƐĂƐƚŽǀŽƟŶŐ͘
A proxy need not be a member of the Company.
92
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
93
INSTRUCTIONS AS TO COMPLETION OF FORM OF PROXY
NOTICE OF MEETING
ϭ͘<ŝŶĚůLJƉĞƌĨĞĐƚƚŚĞ&ŽƌŵŽĨWƌŽdžLJďLJĮůůŝŶŐŝŶůĞŐŝďůLJLJŽƵƌĨƵůůŶĂŵĞĂŶĚĂĚĚƌĞƐƐ͕LJŽƵƌŝŶƐƚƌƵĐƟŽŶƐĂƐƚŽǀŽƟŶŐ͕ďLJƐŝŐŶŝŶŐŝŶ
ƚŚĞƐƉĂĐĞƉƌŽǀŝĚĞĚĂŶĚĮůůŝŶŐŝŶƚŚĞĚĂƚĞŽĨƐŝŐŶĂƚƵƌĞ͘
Ϯ͘WůĞĂƐĞŝŶĚŝĐĂƚĞǁŝƚŚĂ͚y͛ŝŶƚŚĞĐĂŐĞƐƉƌŽǀŝĚĞĚŚŽǁLJŽƵƌƉƌŽdžLJŝƐƚŽǀŽƚĞŽŶƚŚĞZĞƐŽůƵƟŽŶƐ͘/Ĩ
ƚŚĞWƌŽdžLJŝŶŚŝƐͬŚĞƌĚŝƐĐƌĞƟŽŶŵĂLJǀŽƚĞĂƐŚĞͬƐŚĞƚŚŝŶŬƐĮƚ͘
ŶŽ ŝŶĚŝĐĂƟŽŶ ŝƐ ŐŝǀĞŶ
Ϯ͘dŚĞĐŽŵƉůĞƚĞĚ&ŽƌŵŽĨWƌŽdžLJƐŚŽƵůĚďĞĚĞƉŽƐŝƚĞĚĂƚƚŚĞZĞŐŝƐƚĞƌĞĚKĸĐĞŽĨƚŚĞŽŵƉĂŶLJ͕EŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕
ZĂũĂŐŝƌŝLJĂŶŽƚůĞƐƐƚŚĂŶϰϴŚŽƵƌƐďĞĨŽƌĞƚŚĞƟŵĞĂƉƉŽŝŶƚĞĚĨŽƌŚŽůĚŝŶŐƚŚĞŵĞĞƟŶŐ͘
ϰ͘/ĨƚŚĞĨŽƌŵŽĨƉƌŽdžLJŝƐƐŝŐŶĞĚďLJĂŶĂƩŽƌŶĞLJ͕ƚŚĞƌĞůĂƟǀĞƉŽǁĞƌŽĨĂƩŽƌŶĞLJƐŚŽƵůĚĂĐĐŽŵƉĂŶLJƚŚĞĐŽŵƉůĞƚĞĚĨŽƌŵŽĨƉƌŽdžLJ
ĨŽƌƌĞŐŝƐƚƌĂƟŽŶŝĨƐƵĐŚƉŽǁĞƌŽĨĂƩŽƌŶĞLJŚĂƐŶŽƚĂůƌĞĂĚLJďĞĞŶƌĞŐŝƐƚĞƌĞĚǁŝƚŚƚŚĞŽŵƉĂŶLJ͘
Note:
/ĨƚŚĞƐŚĂƌĞŚŽůĚĞƌŝƐĂŽŵƉĂŶLJŽƌďŽĚLJĐŽƌƉŽƌĂƚĞ͕^ĞĐƟŽŶϭϯϴŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚEŽ͘ϬϳŽĨϮϬϬϳĂƉƉůŝĞƐƚŽƐŚĂƌĞŚŽůĚĞƌƐ
ŽĨKĚĞůW>ĂŶĚ^ĞĐƟŽŶϭϯϴƉƌŽǀŝĚĞƐĨŽƌƌĞƉƌĞƐĞŶƚĂƟŽŶŽĨŽŵƉĂŶŝĞƐĂƚŵĞĞƟŶŐŽĨŽƚŚĞƌŽŵƉĂŶŝĞƐ͘ĐŽƌƉŽƌĂƟŽŶ͕ǁŚĞƚŚĞƌ
ĂŽŵƉĂŶLJǁŝƚŚŝŶƚŚĞŵĞĂŶŝŶŐŽĨƚŚŝƐĐƚŽƌŶŽƚ͕ŵĂLJǁŚĞƌĞŝƚŝƐĂŵĞŵďĞƌŽĨĂŶŽƚŚĞƌĐŽƌƉŽƌĂƟŽŶ͕ďĞŝŶŐĂĐŽŵƉĂŶLJǁŝƚŚŝŶ
ƚŚĞŵĞĂŶŝŶŐŽĨƚŚŝƐĐƚďLJƌĞƐŽůƵƟŽŶŽĨŝƚƐŝƌĞĐƚŽƌƐŽƌŽƚŚĞƌŐŽǀĞƌŶŝŶŐďŽĚLJĂƵƚŚŽƌŝƐĞƐƵĐŚƉĞƌƐŽŶĂƐŝƚƚŚŝŶŬƐĮƚƚŽĂĐƚĂƐ
ŝƚƐƌĞƉƌĞƐĞŶƚĂƟǀĞĂƚĂŶLJŵĞĞƟŶŐŽĨƚŚĞŽŵƉĂŶLJ͘ƉĞƌƐŽŶĂƵƚŚŽƌŝƐĞĚĂƐĂĨŽƌĞƐĂŝĚƐŚĂůůďĞĞŶƟƚůĞĚƚŽĞdžĞƌĐŝƐĞƚŚĞƐĂŵĞ
ƉŽǁĞƌŽŶďĞŚĂůĨŽĨƚŚĞŽƌƉŽƌĂƟŽŶǁŚŝĐŚŝƚƌĞƉƌĞƐĞŶƚƐĂƐƚŚĂƚŽƌƉŽƌĂƟŽŶĐŽƵůĚĞdžĞƌĐŝƐĞŝĨŝƚǁĞƌĞĂŶ/ŶĚŝǀŝĚƵĂůƐŚĂƌĞŚŽůĚĞƌ
of that other Company.
EKd/ŝƐŚĞƌĞďLJŐŝǀĞŶƚŚĂƚƚŚĞŶŶƵĂů'ĞŶĞƌĂůDĞĞƟŶŐŽĨKĚĞůW>ǁŝůůďĞŚĞůĚĂƚdŚĞ/ŶƐƟƚƵƚĞŽĨŚĂƌƚĞƌĞĚĐĐŽƵŶƚĂŶƚƐŽĨ^ƌŝ
Lanka 30A, Malalasekera Mawatha, Colombo 07 on Tuesday, 9th September 2014 at 11.00a.m.
AGENDA
ϭ͘dŽƌĞĐĞŝǀĞĂŶĚĐŽŶƐŝĚĞƌƚŚĞŶŶƵĂůZĞƉŽƌƚŽĨƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŽŶƚŚĞ^ƚĂƚĞŽĨīĂŝƌƐŽĨƚŚĞŽŵƉĂŶLJĂŶĚƚŚĞƵĚŝƚĞĚ
Consolidated Financial Statements for the year ended 31st March 2014 with the Report of the Auditors thereon.
Ϯ͘dŽƌĞͲĞůĞĐƚDƌ͘zŚŐ͕ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿŽĨƚŚĞƌƟĐůĞƐŽĨƐƐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶLJ͘
ϯ͘dŽƌĞͲĞůĞĐƚDƌ͘dŝĂŶŐŚĞĞ^ƵŶŐĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿŽĨƚŚĞƌƟĐůĞƐŽĨƐƐĐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶLJ͘
ϰ͘dŽƌĞͲĞůĞĐƚDƐ͘tŽŶŐ^ŝĞǁŚƵĂŶĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿŽĨƚŚĞƌƟĐůĞƐŽĨƐƐĐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶLJ͘
5. To re-appoint M/s. Ernst & Young, Chartered Accountants as Auditors to the Company and authorise the Directors to determine
ƚŚĞŝƌƌĞŵƵŶĞƌĂƟŽŶ͘
ϲ͘dŽĂƵƚŚŽƌŝƐĞƚŚĞŝƌĞĐƚŽƌƐƚŽĚĞƚĞƌŵŝŶĞĐŽŶƚƌŝďƵƟŽŶƐƚŽĐŚĂƌŝƟĞƐ͘
By Order of the Board of Directors of
Odel PLC
S S P CORPORATE SERVICES (PRIVATE) LIMITED
SECRETARIES
Colombo
Date : 14th July 2014
Notes :
ϭ͘ŵĞŵďĞƌĞŶƟƚůĞĚƚŽĂƩĞŶĚĂŶĚǀŽƚĞĂƚƚŚĞŵĞĞƟŶŐŝƐĞŶƟƚůĞĚƚŽĂƉƉŽŝŶƚĂWƌŽdžLJƚŽĂƩĞŶĚĂŶĚǀŽƚĞŝŶƐƚĞĂĚŽĨŚŝŵͬŚĞƌ͘^ƵĐŚ
Proxy need not be a member of the Company.
Ϯ͘&ŽƌŵŽĨWƌŽdžLJĂĐĐŽŵƉĂŶŝĞƐƚŚŝƐŶŽƟĐĞ͘
ϯ͘dŚĞĐŽŵƉůĞƚĞĚ&ŽƌŵŽĨWƌŽdžLJƐŚŽƵůĚďĞĚĞƉŽƐŝƚĞĚĂƚƚŚĞZĞŐŝƐƚĞƌĞĚKĸĐĞŽĨƚŚĞŽŵƉĂŶLJ͕EŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝLJĂ
ŶŽƚůĂƚĞƌƚŚĂŶϰϴŚŽƵƌƐďĞĨŽƌĞƚŚĞƟŵĞĂƉƉŽŝŶƚĞĚĨŽƌƚŚĞŵĞĞƟŶŐ͘
94
ODEL ANNUAL REPORT
ODEL ANNUAL REPORT
95
CORPORATE INFORMATION
EĂŵĞŽĨĐŽŵƉĂŶLJ
ƵĚŝƚŽŵŵŝƩĞĞ
Odel PLC
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂͲŚĂŝƌŵĂŶ
Mr. Paul Topping
Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ;ZĞƐŝŐŶĞĚǁ͘Ğ͘Ĩ͘ϰ:ƵůLJϮϬϭϰͿ
>ĞŐĂůĨŽƌŵ
Public Limited Liability Company
Incorporated in Sri Lanka in 1990
ZĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨƚŚĞĐŽŵƉĂŶLJ
475/32,
<ŽƩĞZŽĂĚ͕
Rajagiriya.
ŽŵƉĂŶLJƌĞŐŝƐƚƌĂƟŽŶEŽ͘
ZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞ
Mr Paul Topping - Chairman
Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞLJ/ŐŶĂƟƵƐWĞƌĞƌĂ
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ
Dƌ͘ZĂLJŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ;ZĞƐŝŐŶĞĚǁ͘Ğ͘Ĩ͘ϰ:ƵůLJϮϬϭϰͿ
^ĞĐƌĞƚĂƌŝĞƐĂŶĚƌĞŐŝƐƚƌĂƌƐ
S S P Corporate Services (Private) Limited
101, Inner Flower Road, Colombo 3
PV 7206 PQ
Auditors
Directors (At the year end)
Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞͲŚĂŝƌŵĂŶ
Ms. Otara Del Gunewardene
Mr. Paul Topping
Dƌ͘^ĂŶũĂLJ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ
Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞLJ/ŐŶĂƟƵƐWĞƌĞƌĂ
Mr. Datuk Cheng Yoong Choong
Dƌ͘ZĂLJŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ
Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ
Dƌ͘,ŝĂEŐĞĞzĞŽǁ;ĂůƚĞƌŶĂƚĞĚŝƌĞĐƚŽƌƚŽ
Mr. Datuk Cheng Yoong Choong)
Ernst & Young
Chartered Accountants
201 De Saram Place
P.O. Box 101
Colombo
Sri Lanka
Bankers
*Mr. Datuk Cheng Yoong Choong resigned as a Director of the
ŽŵƉĂŶLJǁŝƚŚĞīĞĐƚĨƌŽŵϯϭƐƚDĂLJϮϬϭϰ͘Dƌ͘,ŝĂEŐĞĞzĞŽǁ
ĐĞĂƐĞĚƚŽďĞŚŝƐĂůƚĞƌŶĂƚĞǁŝƚŚĞīĞĐƚĨƌŽŵϯϭƐƚDĂLJϮϬϭϰ
DFCC Bank
DFCC Vardhana Bank
,ĂƩŽŶEĂƟŽŶĂůĂŶŬ
,ŽŶŐŬŽŶŐĂŶĚ^ŚĂŶŐŚĂŝĂŶŬŝŶŐŽƌƉŽƌĂƟŽŶ
Bank of Ceylon
EĂƟŽŶdƌƵƐƚĂŶŬ
Sampath Bank
Union Bank
Dƌ͘ZĂLJŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶĂŶĚDƌ͘<ŽŚ,ƵĂƚ>ĂŝƌĞƐŝŐŶĞĚǁŝƚŚ
ĞīĞĐƚĨƌŽŵϰƚŚ:ƵůLJϮϬϭϰ͘
/ŶǀĞƐƚŽƌZĞůĂƟŽŶƐ
Dƌ͘zŚŐ͘ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐ͕Dƌ͘dŝĂŶŐŚĞĞ^ƵŶŐĂŶĚDƐ͘
tŽŶŐ^ŝĞǁŚƵĂŶǁĞƌĞĂƉƉŽŝŶƚĞĚĂƐŝƌĞĐƚŽƌƐǁŝƚŚĞīĞĐƚĨƌŽŵ
4th July 2014.
Odel PLC
ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ
Rajagiriya.
Tel: 0114625700
Web: www.odel.lk
ŚĂŶŐĞƐƚŽƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ
Dƌ͘,ĂŵŝĚ'ŚĂnjĂůŝ,ƵƐƐĂŝŶǁĂƐĂƉƉŽŝŶƚĞĚĂƐĂůƚĞƌŶĂƚĞĚŝƌĞĐƚŽƌ
ƚŽDƌ͘WĂƵůdŽƉƉŝŶŐǁŝƚŚĞīĞĐƚĨƌŽŵϲƚŚ:ƵůLJϮϬϭϰ͘
96
ODEL ANNUAL REPORT