TheCharteredAccountantsof Sri Lanka - Qatar Chapter

Annual Report

2017 - 2018

Affiliated to the Sri Lankan Embassy in the State of QatarThe Chartered Accountants of Sri Lanka - Qatar Chapter

(Affiliated to the Sri Lankan Embassy in the State of Qatar)

VisionMission

StratagicObjectives&

Vision Mission

Strategic Objectives

To be recognized as one of the leading overseas Chapters of the Institute of Chartered Accountants of Sri Lanka (CASL)

To develop professional competence and integrity of CASL members living in Qatar and create unity among them

Advocate and promote the value that the members add to the business

Facilitate Continued Professional Development and networking oppotunities

Enhance professional competencies and create awareness of business needs

Provide an opportunity for social and community interactions

Work closely with the Sri Lanka Mission in Qatar as appropriate for the benefit of CASL members living in Qatar as well as Sri Lankan community in Qatar

3

Executive Committee2017/2018

Sujeewa RanasinghePresident

Shahard NazirVice President & Chairman - Annual Report

Roshan MadushankaHon. Treasurer

Chameera De SilvaGeneral Secretary

Mohamed LafirPast President

4

Executive Committee2017/2018

Praveen HerathExco Member

Anas GhouseExco Member

Felix PonweeraExco Member

Venkat SandrasegaranChairman - Technical Committee

Kethaka KusumindaChairman - Social Committee

5

Provides Fleet Management Solutions to all walks of Trade and Industrial &

Public sector entities.

P.O.Box: 2130, Doha - QatarTel.: +974 44 999 888 - Fax: +974 44 999 894

Email: info@aayan.com.qa

12P A G E

Message from the President ofthe chapter

09P A G E

Patron’s message

16P A G E

Chapter Calendar

20P A G E

Banking perspective 2018/19 53P A G E

thank you note

24P A G E

Why accountants need to embracerobotics and intelligent automation?

28P A G E

Technical events

38P A G E

Congregare 2018 Members night

48P A G E

Paduru Party

10P A G E

Message from the President ofCA Sri Lanka

15P A G E

Executive Committee andSub Committees

18P A G E

What is Blockchain Technology?

22P A G E

onesri.com-For unique positiveexperiences in Sri Lanka

26P A G E

Difference between Project IRRand Equity IRR

36P A G E

CSR activities

42P A G E

CASL-QCPL Cricket Tournament 2017

CONTENTS

55P A G E

Chapter Information

57P A G E

Members’ Database

7

Best wishes from…

PATRON’SMESSAGE

9

Messagefrom the Presidentof CA Sri Lanka

I pen this message at a time when Sri Lanka has once again been dragged into an era of darkness. Despite these difficult times, we as citizens and professionals must band together to help our country rise from this man-made tragedy.

The country’s economy especially the tourism industry has dealt a catastrophic blow due to the actions of a few selfish extremist individuals, but as

a country rose from a 30 year long internal conflict and 2 insurgencies, I am certain Sri Lanka will again bounce back and will be once again the cynosure

of the world, tourists and investors alike.

Despite all, we also have something to commemorate because our Institute will

celebrate its Diamond Jubilee this year. A six decade long existence is no small feat because it takes countless years of commitment, dedication and hard work by a multitude of people to achieve the standing and respect that CA Sri Lanka today enjoys across the accountancy profession.

As the primary stakeholders of the Institute, each and every member

has contributed in numerous ways in uplifting and strengthening the accounting profession over the years, and therefore all of us must be proud of this important milestone that CA Sri Lanka has

achieved.

We believe that it is our responsi-bility as an influential professional

accountancy organization to be in the forefront in giving our members the

necessary leadership to strengthen their professional standing and stay ahead of the

challenges, so that they remain invaluable and continue to be an integral part in building better corporates.

10

In continuing this objective, CA Sri Lanka took a series of landmark decisions and launched several important initiatives in 2018 in our efforts to enhance and strengthen our members so that they can stand shoulder to shoulder with their foreign counterparts. Our primary focus was to enhance and strengthen the standing of our members whether they are in Sri Lanka or overseas. In this regard, we entered into Memorandum of Understanding (MOU) with Chartered Accountants Australia and New Zealand (CA ANZ) whereby our members are eligible to obtain the CA ANZ membership without sitting for any exams. Further, existing agreements with the Institute of Chartered Accountants in England and Wales (ICAEW) has been renewed with a new pathway programme to obtain the membership of ICAEW. We also renewed the Mutually Recognition Agreement (MRA) with CPA Australia to ensure that our members can enjoy the best of both worlds as distinguished members of the accountancy profession. In the meantime, we are discussing with several international professional accountancy organizations to enter into collaborations and will be announced soon.

To further strengthen our presence across the globe, we are considering the formation of several overseas chapters for the benefit of our members residing outside of Sri Lanka. In this regard, in addition to the existing Chapters in the Middle East region we establish a chapter in Jeddah, Saudi Arabia. Furthermore, formalities have been completed for 2 chapters in Australia, one in Sydney and another in Melbourne. We are in the process of initiating few more chapters in cities with high concentration of our members.

As an institute, we are steadfastly moving forward to help strengthen your position as a Chartered Accountant. At a time when the business world has become complex and the profession is faced with numerous challenges, you need to understand that there is an increasing need to think out of the box and inculcate new skills and strengthen the competencies if you are to take on future challenges, and this is why we always promote the concept of ‘learn, unlearn and relearn’ for not just among our members but also for our students, because ‘remain relevant’ must be everyone’s top priority.

As one of our very first overseas chapters, the CA Sri Lanka Qatar Chapter has come a long way and is also among the most proactive chapter in engaging members regularly. The chapter has been an excellent supporting arm for our members based in Qatar, and is an exceptional example to all other CA chapters to emulate. The Qatar Chapter has played an exemplary role by becoming an important link between our members and the institute, all while helping our members residing in Qatar to strengthen their progression in the professional realm by updating them on various matters pertaining to the accounting profession. Therefore, CA Sri Lanka extends its appreciation to the office bearers of the Qatar Chapter, for the tireless role they have played in enhancing the knowledge and skills of our members in Qatar.

On behalf of CA Sri Lanka, I wish the Qatar Chapter all success.

Jagath PereraPresident - CA Sri Lanka

11

Messagefrom the Presidentof the Chapter

Nine years ago, CA Qatar Chapter started its journey as a small professional group with handful number of members. Today, as the 9th president of the chapter and as a member who witnessed the progress of the chapter from the inception, I have a tremendous pleasure to present the performance of

our chapter for the year 2017/18.

Our journey over last 9 years was not an easy one. We faced many hurdles, challenges in

different nature particularly during the recent past. Geopolitical issues in the Middle East region and volatilities in our country made our journey extremely challenging. I am pleased to mention

that CA Qatar Chapter, as a group with high level of determination, faced those challenges and managed to carry out many activities in order to fulfill our responsibilities for the benefit of members’ families and wider Sri Lankan society without a slight compromise in quality.

As a responsible professional association, we carried out many CSR activities such as donation of a well-equipped modern computer lab to

Kithalagama Maha Vidyalaya, Matara which is a flood affected,

under privileged school in Southern province of Sri Lanka. In my recent

visit to the school, I was impressed to see children learning computer

science with great interest. This was only a dream for them few years ago. The appreciation and thankfulness of school

12

principal teachers and parents proved me that we as the chapter, made a perfect decision on this project. Moreover, we established Rs. 1Mn scholarship fund with the mother institute, to fulfil the aspiration of under privileged students who dream to be a chartered accountant. I believe the Chapter will further enhance this fund with the support of members and well-wishers in coming years in order to expand our support to needy children.

As part of our primary responsibilities, we organized many soft and hard skill development programs such as “Be Ethical- Be Successful” , “IFRS updates”, “Getting along with people”, “Essential Leadership skills for professionals” etc., for the benefit of members and students. At the annual members’ night, eight members were awarded with honorary life membership, acknowledging the enormous contribution they have made to the Chapter from the inception. They were mostly founder Executive Committee members.

The chapter has been working very closely with the Sri Lankan Embassy in Qatar. It is with greatest pleasure, I extend my thankful gratitude to His Excellency the Ambassador of Sri Lanka to Qatar, Mr. A.S P Liyanage and the Embassy staff for the support provided.

The Chapter continued to work together with the mother Institute on various fronts. The examinations in Qatar were

successfully conducted in December and June respectively with the number of students continuously increasing that has now reached more than 60 for the latest examination sessions. I would like to thank Mr. Jagath Perera, the President of CA Sri Lanka, Mr. Manil Jayasinghe, the Vice President of CA Sri Lanka, Mr. Dayananda Wijesekara, Examinations Consultant, other executives and staff members for their excellent support extended to us during the year.

During the past year, I was extremely lucky to have energetic hard working team of Executive committee and subcommittee members on board. Commitment put forward by each committee member was far beyond expectation. We managed to identify many hidden talents of members and amazing human qualities of many members when working within close teams. No association would succeed without such a commitment of members.

Finally, I would like to express my appreciation to all our members, sponsors and well-wishers for their selfless support. It was a great honor and a privilege serving you as the president of the Chapter. I wish the Chapter and members every success in years to come.

Sujeewa RanasinghePresident -CA Sri Lanka Qatar Chapter

13

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Executive Committee and Sub CommitteesEXECUTIVE COMMITTEE Post Name Mobile Email addressPresident Sujeewa Ranasinghe 55505916 sujeewa.ranasinghe@lafargeholcim.comVice President Shahard Nazir 55471723 Nazir_Shahard@Oxy.comGeneral Secretary Chameera De Silva 55644581 chameera.silva@qa.ey.comHon Treasurer Roshan Madushanka 50767472 roshan.pathiranalage@qa.ey.comPast President Mohammed Lafir 66654344 Mohammed.laffir@udcqatar.comMember Venkatesh Sandrasegaran 55691511 venkatsegaran@gmail.comMember Kethaka Kusuminda 77623396 kmudiyanselage@kpmg.comMember Felix D. Ponweera 55189260 dfelix@qf.org.qaMember Anas Ghouse 33463070 anasghouse@hotmail.comMember Praveen Herath 66024265 Praveen.herath@qa.ey.com

TECHNICAL COMMITTEE Post Name MobileChairman Venkatesh Sandrasegaran 55691511 Member Nadaraja Dayabaran 55626472Member Sujanthan Felix 33347679

SOCIAL COMMITTEE Post Name MobileChairman Kethaka Kusuminda 77623396Member Gayan Chamara 33176215Member Niflan Naim 33645361Member Tharindu Dilusha 66446327Member Anas Ghouse 33463070Member Shyamal Herath 50765092Member Ruwan Sampath 33895765Member Nadika Kumara 55217983

ANNUAL REPORT COMMITTEE Post Name MobileChairman Shahard Nazir 55471723

PAST PRESIDENTSMr. Mohammed Lafir ACA 2016-2017Mr. Subashchandran Sundaralingam FCA 2015-2016Mr. Sudarshana Wijesundara ACA 2014-2015Mr. Saman Fernando FCA 2013-2014Mr. Rukshan Karunaratne FCA 2012-2013Mr. Rizwan Yaseen ACA 2011-2012Mr. Felix Dayananda Ponweera FCA 2010-2011Mr. M. Thayabaran FCA 2008-2010

15

Chapter CalendarJune 2017 Eighth Annual General Meeting

The eighth Annual General Meeting of the Chapter was held on 14 June 2017 at Radisson Blu Hotel, Doha,Qatar.

October 2017 First Technical EventOn 20th October 2017, The Chapter conducted its first technical event as a panel discussion under the theme “Be ethical- Be Successful” at Mariott Hotel, Doha.Key note speech was addressed by Mr. Reyaz Mihular, Managing partner KPMG Sri Lanka and followed by a panel discussion involving Mr. Gopal Balasubramaniam, Partner KPMG Qatar and Mr. Richard Stears, Executive Director Finance, UDC.

November 2017 Second Technical EventOn 8th November, 2017, the Chapter conducted its second technical event under the topic “Getting along with People” at Radisson Blu Hotel, Doha. The guest speaker was Mr. Hasan Imam Khawaja, Manager of Talent Acquisition and Retention at Qatar Cool.

November 2017 Third Technical Event On 29th November 2017, The Chapter conducted its third technical event on IFRS 9 & 15 updates at Radisson Blu Hotel, Doha, Qatar. The guest speakers were Mr. Yusuf Sayed, Director KPMG Qatar and one of our past presidents Mr. Rizwan Yaseen, Director KPMG Qatar.

December 2017 CASL-QCPL The eighth annual CASL Qatar Chapter Premier League cricket championship for members was held on 7th December 2017 at MIC grounds, Mesaieed.

January 2018 Fourth Technical Event On 26th January 2018, The Chapter conducted its fourth technical event under the topic “Essential leadership skills for professionals” at Radisson Blu Hotel, Doha. The guest speaker was Professor Ajantha Dharmasiri, Director and the Chairman of the Board of Management of the Postgraduate Institute of Management, University of Sri Jayewardenepura.

February 2018 Flood Relief EffortChapter has organized a flood relief project to donate a well-equipped modern computer lab to Kithalagama Maha Vidyalaya, Matara, one of the under privileged schools in Southern province of Sri Lanka

March 2018 Paduru Party Social committee organized a Paduru party on the 2nd March 2018 at Radission Blu, Doha. Members, spouses and their children displayed their singing talent at the occasion.

May 2018 Members Night (CONGREGARE 2018) The Annual Members’ Night was held on 11 May 2018 at Intercontinental Hotel, Doha. The chief guest of the event was Mr. Manil Jayasinghe, Vice President of the Institute of Chartered Accountants of Sri Lanka.

16

What is BlockchainTechnology?

A blockchain is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block a timestamp,  and  transaction  data  (generally represented as a Merkle tree).By  design,  a  blockchain  is  resistant  to  modification of the data. It is an open, distributed ledger that can record transactions between two parties efficiently and in  a  verifiable  and permanent way.

Is Blockchain Technology the New Internet?The  blockchain  is  an  undeniably  ingenious  invention, the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it  has  evolved  into  something  greater,  and  the main question  every  single  person  is  asking  is:  What  is Blockchain?

By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, (Buy Bitcoin) the tech community has now found other potential uses for the technology.

In this guide, we are going to see what the blockchain technology is, and what its properties are that make it so unique.

What is Blockchain Technology?A blockchain is, in the simplest of terms, a time-stamped series of immutable record of data that is managed by cluster of  computers not owned by  any  single  entity. Each of these blocks of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e. chain).

So, what is so special about  it and why are we saying that  it  has  industry  disrupting  capabilities?

The blockchain network has no central authority, it is the very definition of a democratized system. Since it is a shared and immutable ledger, the information in it is open for anyone and everyone to see. Hence, anything that is built on the blockchain is by its very nature transparent and everyone involved is accountable for their  actions.

Blockchain ExplainedA  blockchain carries  no  transaction  cost.  (An infrastructure  cost  yes,  but  no  transaction  cost.)  The blockchain  is  a  simple  yet  ingenious  way  of  passing information from A to B in a fully automated and safe manner. One party to a transaction initiates the process by creating a block. This block is verified by thousands, perhaps millions of computers distributed around the 

net.  The  verified  block  is  added  to  a  chain,  which  is stored across the net, creating not just a unique record, but a unique record with a unique history. Falsifying a single  record  would  mean  falsifying  the  entire  chain in  millions  of  instances.  That  is  virtually  impossible. Bitcoin uses this model for monetary transactions, but it  can be deployed  in many others ways.Think of a railway company. We buy tickets on an app or  the web.  The  credit  card  company  takes  a  cut  for processing  the  transaction. With blockchain, not only can the railway operator save on credit card processing fees,  it  can move  the  entire  ticketing  process  to  the blockchain. The two parties in the transaction are the railway  company  and  the  passenger.  The  ticket  is  a block, which will be added to a ticket blockchain. Just as a monetary  transaction on blockchain  is  a unique, independently  verifiable  and unfalsifiable  record  (like Bitcoin),  so  can  your  ticket  be.  Incidentally,  the  final ticket  blockchain  is  also  a  record  of  all  transactions for, say, a certain train route, or even the entire train network,  comprising  every  ticket  ever  sold,  every journey  ever  taken.

But  the  key  here  is  this:  it’s  free.  Not  only  can  the blockchain  transfer  and  store money,  but  it  can  also replace all processes and business models which  rely on charging a small fee for a transaction. Or any other transaction  between  two  parties.

All  you  need  to  do  is  encode  the  transactional information  for  a  car  ride  or  an  overnight  stay,  and again you have a perfectly safe way that disrupts the

business  model  of  the  companies  which  have  just begun  to  challenge the  traditional  economy.  We  are not  just  cutting  out  the  fee-processing  middle  man, we are also eliminating the need for the match-making platform.

Because  blockchain  transactions  are  free,  you  can charge  minuscule  amounts,  say  1/100  of  a  cent for  a  video  view  or  article  read.  Why  should  I  pay The  Economist  or  National  Geographic  an  annual subscription fee if I can pay per article on Facebook or my favorite chat app. Again, remember that blockchain transactions carry no transaction cost. You can charge for  anything  in  any  amount  without  worrying  about third  parties cutting  into  your  profits. 

How Does Blockchain Work?Picture a spreadsheet that is duplicated thousands of times  across  a  network  of  computers.  Then  imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.

Information held on a blockchain exists as a shared — and  continually  reconciled — database.  This  is  a way of  using  the  network  that  has  obvious  benefits.  The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable.  No  centralized  version  of  this  information exists  for  a  hacker  to  corrupt.  Hosted  by  millions  of computers  simultaneously,  its  data  is  accessible  to anyone on the internet.

18

What is BlockchainTechnology?

A blockchain is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block a timestamp,  and  transaction  data  (generally represented as a Merkle tree).By  design,  a  blockchain  is  resistant  to  modification of the data. It is an open, distributed ledger that can record transactions between two parties efficiently and in  a  verifiable  and permanent way.

Is Blockchain Technology the New Internet?The  blockchain  is  an  undeniably  ingenious  invention, the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it  has  evolved  into  something  greater,  and  the main question  every  single  person  is  asking  is:  What  is Blockchain?

By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, (Buy Bitcoin) the tech community has now found other potential uses for the technology.

In this guide, we are going to see what the blockchain technology is, and what its properties are that make it so unique.

What is Blockchain Technology?A blockchain is, in the simplest of terms, a time-stamped series of immutable record of data that is managed by cluster of  computers not owned by  any  single  entity. Each of these blocks of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e. chain).

So, what is so special about  it and why are we saying that  it  has  industry  disrupting  capabilities?

The blockchain network has no central authority, it is the very definition of a democratized system. Since it is a shared and immutable ledger, the information in it is open for anyone and everyone to see. Hence, anything that is built on the blockchain is by its very nature transparent and everyone involved is accountable for their  actions.

Blockchain ExplainedA  blockchain carries  no  transaction  cost.  (An infrastructure  cost  yes,  but  no  transaction  cost.)  The blockchain  is  a  simple  yet  ingenious  way  of  passing information from A to B in a fully automated and safe manner. One party to a transaction initiates the process by creating a block. This block is verified by thousands, perhaps millions of computers distributed around the 

net.  The  verified  block  is  added  to  a  chain,  which  is stored across the net, creating not just a unique record, but a unique record with a unique history. Falsifying a single  record  would  mean  falsifying  the  entire  chain in  millions  of  instances.  That  is  virtually  impossible. Bitcoin uses this model for monetary transactions, but it  can be deployed  in many others ways.Think of a railway company. We buy tickets on an app or  the web.  The  credit  card  company  takes  a  cut  for processing  the  transaction. With blockchain, not only can the railway operator save on credit card processing fees,  it  can move  the  entire  ticketing  process  to  the blockchain. The two parties in the transaction are the railway  company  and  the  passenger.  The  ticket  is  a block, which will be added to a ticket blockchain. Just as a monetary  transaction on blockchain  is  a unique, independently  verifiable  and unfalsifiable  record  (like Bitcoin),  so  can  your  ticket  be.  Incidentally,  the  final ticket  blockchain  is  also  a  record  of  all  transactions for, say, a certain train route, or even the entire train network,  comprising  every  ticket  ever  sold,  every journey  ever  taken.

But  the  key  here  is  this:  it’s  free.  Not  only  can  the blockchain  transfer  and  store money,  but  it  can  also replace all processes and business models which  rely on charging a small fee for a transaction. Or any other transaction  between  two  parties.

All  you  need  to  do  is  encode  the  transactional information  for  a  car  ride  or  an  overnight  stay,  and again you have a perfectly safe way that disrupts the

business  model  of  the  companies  which  have  just begun  to  challenge the  traditional  economy.  We  are not  just  cutting  out  the  fee-processing  middle  man, we are also eliminating the need for the match-making platform.

Because  blockchain  transactions  are  free,  you  can charge  minuscule  amounts,  say  1/100  of  a  cent for  a  video  view  or  article  read.  Why  should  I  pay The  Economist  or  National  Geographic  an  annual subscription fee if I can pay per article on Facebook or my favorite chat app. Again, remember that blockchain transactions carry no transaction cost. You can charge for  anything  in  any  amount  without  worrying  about third  parties cutting  into  your  profits. 

How Does Blockchain Work?Picture a spreadsheet that is duplicated thousands of times  across  a  network  of  computers.  Then  imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.

Information held on a blockchain exists as a shared — and  continually  reconciled — database.  This  is  a way of  using  the  network  that  has  obvious  benefits.  The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable.  No  centralized  version  of  this  information exists  for  a  hacker  to  corrupt.  Hosted  by  millions  of computers  simultaneously,  its  data  is  accessible  to anyone on the internet.

19

Banking perspective 2018/2019

2018 has been a positive year for listed banks in Qatar, with an average 9.5 percent growth in net profit and 3.2 percent growth in total asset, both year-on-year, which  demonstrates  strength  and  opportunities  in the  sector.  Furthermore, Cost  to  income  ratio  (CIR) of  all  banks  have  reduced  year-on-year,  except  for two,  reflecting  the  continued  focus  on  efficiencies to  improve  net  profits.  Credit  quality  does  remain a  challenge,  however,  as  loan  impairment  and  non performing loan ratio (NPL) ratios increased from the prior year. The expected credit loss (ECL) impact as a result of the adoption of  IFRS 9 on 1 January 2018, was US$3.0 billion (50 percent of existing provisions as  at  31  December  2017).  Qatar’s  listed  banks  did not  have  a  significant  impact  on  their  total  capital adequacy ratio as a result of the adoption of IFRS 9.

Sector overviewCurrently 18 banks operate under the Qatar Central Bank  (QCB)  regulatory  regime,  of  which  11  are national banks (four of which are Islamic) and seven foreign  branches.  Nine  national  banks  are  listed on  the  Qatar  Exchange  (QE)  (four  being  Islamic), including  one  Islamic  investment  bank  which  has been excluded for the purposes of this report, which covers  only  commercial  banks.  No  new  banking licenses  were  granted  by  the  QCB  in  2018.

Regulatory updateThe  QCB  takes  a  proactive  approach  to  regulating banks  in  Qatar.  It  has  issued  Basel  III  regulations for all banks, which have been applied in a phased manner, and has implemented numerous regulatory requirements  that  have  been  applied  in  more developed financial markets, covering areas such as stress testing, capital planning, liquidity management, and  recovery  and  resolution  planning.Profitability on the rise

- Overall profitability for listed Qatari commercial banks has increased year-on-year by 9.5 percent. All  banks,  except  for  one,  reported  an  increase in net profit from 2017, with conventional banks performing in line with their Islamic counterparts.

- This increase can predominantly be attributed to higher net interest income and a decrease in costs which banks continue to focus on.

Cost consciousness remains

-  At  28.2  percent,  Qatar’s  listed  banks  have  the second  lowest  cost-to-income  ratio  on  average across  the  GCC,  reflecting  cost  consciousness across the sector and country as a whole.

- All, except two banks, reported a decline in their cost-to-income  ratios  which  helped  the  overall average  dip  below  30  percent  for  the  second consecutive time in a number of years. Banks have continued  to  invest  in  short  and  long-term  cost-saving  initiatives.

Stronger capital adequacy ratios

— The average capital adequacy ratio increased by 0.5% as compared  to prior year, with  four banks showing an increase and the remaining showing a decrease, reflecting the conservative approach to business during the year coupled with the specific capital raising activities undertaken to address the concerns identified in previous years

—  In  addition,  the  regulatory  capital  adequacy requirements have been, and continue to, increase with the gradual phasing in of Basel III regulations.

Challenging credit environment

-  2018  has  witnessed  an  overall  increase  in provision charges against financing assets by 10.1 percent, driven by the corporate sector, reflecting potential  challenges  in  the  credit  environment.

-  Although  non-performing  loan  ratios  remain relatively  low  when  compared  to  international norms, 2018 saw higher ratios as compared to the prior year.

Robust asset growth

-  Listed  commercial  banks  posted  a  3.2  percent growth  in  total  assets  from  the  prior  year.  This growth  can  be  predominantly  attributed  to  the increase in cash and cash equivalents (88 percent) and higher financing asset balances  (26 percent) which  was  partially  offset  by  lower  investment securities  (27  percent).

-  The  significant  increase  in  cash  and  cash equivalents  and  financing  asset  balances  was primarily  driven  by  QNB,  which  contributed 125  percent  of  the  total  growth.  The  significant decrease  in  investment  securities  was  also primarily driven by QNB, which contributed 23.5 percent of decline.

Expected credit losses

-  Listed banks  reported an ECL  charge of US$3.0 billion on the adoption of IFRS 9 on 1 January 2018, predominantly as a result of the ECL on financing assets.  This  is  an  increase  of  approximately  50 percent in provisions from the 31 December 2017 reported  numbers.

-  Islamic  banks  contributed  15.6  percent  of  this total ECL while conventional banks accounted for the balance.

The summary below sets out the thoughts of our head of Financial Services on the outlook for the banking sector in Qatar.

Positive long-term outlook

The overall long-term outlook for the Qatar banking sector remains largely positive when compared with relatively more developed markets. Banks are in a strong position to weather the current economic and political challenges, given the expectation of continued government support, rising oil prices, and committed infrastructure investment, which will help maintain stability in the sector.

Increased capital and fundraising

- In our view, banks will continue to look to access the capital markets for funding (through EMTN and sukuk issuances) and local capital issuances given that the State of Qatar outlook had been upgraded to stable in late 2018 by rating agencies. Liquidity is expected to improve with further issuances in the capital markets and support from the State to continue.- The regulator will continue to implement the Basel III capital requirements, with additional domestic systemically important banks (DSIB) and counter cyclical buffer (CCB) requirements to be gradually phased in, resulting in higher capital adequacy requirements for banks to meet.

FinTech supports gather momentum

- With increasing regulatory support for the FinTech sector through Qatar Development Bank (QDB) and Qatar Financial Centre (QFC) lead initiatives, we expect new players to enter the market and new alliances formed in 2019.

- The continued focus on innovation and efficiency will remain as banks look to differentiate themselves in a competitive market given the income pressures being faced and increasing regulatory requirements with efforts from the regulators for ensuring greater financial inclusion and fostering financial innovation in line with the Second Strategic Plan for the Financial Sector 2017-2022.

A measured approach to continue

- As the 2022 FIFA World Cup approaches and in line with the Qatar National Vision 2030, Qatari banks will keep primary focus on the local market, as opposed to looking overseas for growth.

- Banks will also most likely continue with a measured and cautious approach to lending, particularly to the SME, real estate and contracting sectors, given the credit challenges experienced in 2018.

Regulatory requirements on the rise

- In line with the Second Strategic Plan for the Financial Sector 2017-2022, and in advance of the upcoming Financial Action Task Force (FATF) review of Qatar, a greater emphasis is expected on enhancing AML/CFT effectiveness for improving the integrity of and confidence in the financial system.

- In line with the new corporate governance code issued in late 2017 by the Qatar Financial Market Authority (QFMA), for all listed companies including banks, there will be a greater focus on internal controls over financial reporting and compliance with corporate governance requirements in line with international best practices.

Consolidation drive

-In early 2019, the merger of two unlisted banks was completed which is expected to trigger further consolidation initiatives across the banking sector in our view.

- The merger of banks is expected to consolidate market share, improved pricing and cost synergies, which may make them more competitive in the context of shrinking margins currently being faced by banks in Qatar.

Outlook for 2019

20

Banking perspective 2018/2019

2018 has been a positive year for listed banks in Qatar, with an average 9.5 percent growth in net profit and 3.2 percent growth in total asset, both year-on-year, which  demonstrates  strength  and  opportunities  in the  sector.  Furthermore, Cost  to  income  ratio  (CIR) of  all  banks  have  reduced  year-on-year,  except  for two,  reflecting  the  continued  focus  on  efficiencies to  improve  net  profits.  Credit  quality  does  remain a  challenge,  however,  as  loan  impairment  and  non performing loan ratio (NPL) ratios increased from the prior year. The expected credit loss (ECL) impact as a result of the adoption of  IFRS 9 on 1 January 2018, was US$3.0 billion (50 percent of existing provisions as  at  31  December  2017).  Qatar’s  listed  banks  did not  have  a  significant  impact  on  their  total  capital adequacy ratio as a result of the adoption of IFRS 9.

Sector overviewCurrently 18 banks operate under the Qatar Central Bank  (QCB)  regulatory  regime,  of  which  11  are national banks (four of which are Islamic) and seven foreign  branches.  Nine  national  banks  are  listed on  the  Qatar  Exchange  (QE)  (four  being  Islamic), including  one  Islamic  investment  bank  which  has been excluded for the purposes of this report, which covers  only  commercial  banks.  No  new  banking licenses  were  granted  by  the  QCB  in  2018.

Regulatory updateThe  QCB  takes  a  proactive  approach  to  regulating banks  in  Qatar.  It  has  issued  Basel  III  regulations for all banks, which have been applied in a phased manner, and has implemented numerous regulatory requirements  that  have  been  applied  in  more developed financial markets, covering areas such as stress testing, capital planning, liquidity management, and  recovery  and  resolution  planning.Profitability on the rise

- Overall profitability for listed Qatari commercial banks has increased year-on-year by 9.5 percent. All  banks,  except  for  one,  reported  an  increase in net profit from 2017, with conventional banks performing in line with their Islamic counterparts.

- This increase can predominantly be attributed to higher net interest income and a decrease in costs which banks continue to focus on.

Cost consciousness remains

-  At  28.2  percent,  Qatar’s  listed  banks  have  the second  lowest  cost-to-income  ratio  on  average across  the  GCC,  reflecting  cost  consciousness across the sector and country as a whole.

- All, except two banks, reported a decline in their cost-to-income  ratios  which  helped  the  overall average  dip  below  30  percent  for  the  second consecutive time in a number of years. Banks have continued  to  invest  in  short  and  long-term  cost-saving  initiatives.

Stronger capital adequacy ratios

— The average capital adequacy ratio increased by 0.5% as compared  to prior year, with  four banks showing an increase and the remaining showing a decrease, reflecting the conservative approach to business during the year coupled with the specific capital raising activities undertaken to address the concerns identified in previous years

—  In  addition,  the  regulatory  capital  adequacy requirements have been, and continue to, increase with the gradual phasing in of Basel III regulations.

Challenging credit environment

-  2018  has  witnessed  an  overall  increase  in provision charges against financing assets by 10.1 percent, driven by the corporate sector, reflecting potential  challenges  in  the  credit  environment.

-  Although  non-performing  loan  ratios  remain relatively  low  when  compared  to  international norms, 2018 saw higher ratios as compared to the prior year.

Robust asset growth

-  Listed  commercial  banks  posted  a  3.2  percent growth  in  total  assets  from  the  prior  year.  This growth  can  be  predominantly  attributed  to  the increase in cash and cash equivalents (88 percent) and higher financing asset balances  (26 percent) which  was  partially  offset  by  lower  investment securities  (27  percent).

-  The  significant  increase  in  cash  and  cash equivalents  and  financing  asset  balances  was primarily  driven  by  QNB,  which  contributed 125  percent  of  the  total  growth.  The  significant decrease  in  investment  securities  was  also primarily driven by QNB, which contributed 23.5 percent of decline.

Expected credit losses

-  Listed banks  reported an ECL  charge of US$3.0 billion on the adoption of IFRS 9 on 1 January 2018, predominantly as a result of the ECL on financing assets.  This  is  an  increase  of  approximately  50 percent in provisions from the 31 December 2017 reported  numbers.

-  Islamic  banks  contributed  15.6  percent  of  this total ECL while conventional banks accounted for the balance.

The summary below sets out the thoughts of our head of Financial Services on the outlook for the banking sector in Qatar.

Positive long-term outlook

The overall long-term outlook for the Qatar banking sector remains largely positive when compared with relatively more developed markets. Banks are in a strong position to weather the current economic and political challenges, given the expectation of continued government support, rising oil prices, and committed infrastructure investment, which will help maintain stability in the sector.

Increased capital and fundraising

- In our view, banks will continue to look to access the capital markets for funding (through EMTN and sukuk issuances) and local capital issuances given that the State of Qatar outlook had been upgraded to stable in late 2018 by rating agencies. Liquidity is expected to improve with further issuances in the capital markets and support from the State to continue.- The regulator will continue to implement the Basel III capital requirements, with additional domestic systemically important banks (DSIB) and counter cyclical buffer (CCB) requirements to be gradually phased in, resulting in higher capital adequacy requirements for banks to meet.

FinTech supports gather momentum

- With increasing regulatory support for the FinTech sector through Qatar Development Bank (QDB) and Qatar Financial Centre (QFC) lead initiatives, we expect new players to enter the market and new alliances formed in 2019.

- The continued focus on innovation and efficiency will remain as banks look to differentiate themselves in a competitive market given the income pressures being faced and increasing regulatory requirements with efforts from the regulators for ensuring greater financial inclusion and fostering financial innovation in line with the Second Strategic Plan for the Financial Sector 2017-2022.

A measured approach to continue

- As the 2022 FIFA World Cup approaches and in line with the Qatar National Vision 2030, Qatari banks will keep primary focus on the local market, as opposed to looking overseas for growth.

- Banks will also most likely continue with a measured and cautious approach to lending, particularly to the SME, real estate and contracting sectors, given the credit challenges experienced in 2018.

Regulatory requirements on the rise

- In line with the Second Strategic Plan for the Financial Sector 2017-2022, and in advance of the upcoming Financial Action Task Force (FATF) review of Qatar, a greater emphasis is expected on enhancing AML/CFT effectiveness for improving the integrity of and confidence in the financial system.

- In line with the new corporate governance code issued in late 2017 by the Qatar Financial Market Authority (QFMA), for all listed companies including banks, there will be a greater focus on internal controls over financial reporting and compliance with corporate governance requirements in line with international best practices.

Consolidation drive

-In early 2019, the merger of two unlisted banks was completed which is expected to trigger further consolidation initiatives across the banking sector in our view.

- The merger of banks is expected to consolidate market share, improved pricing and cost synergies, which may make them more competitive in the context of shrinking margins currently being faced by banks in Qatar.

Outlook for 2019

21

www.onesri.com.lk For UniquePositive experiences inSri Lanka

Sri Lanka is a beautiful country, where you can find endless beaches, timeless ruins verdant greenery, well-conserved flora and fauna, friendly people and delicious food. Sri Lanka is one of the most preferred travelling destinations among global travelers. Tourism in Sri Lanka has been a story of untapped potential. The country is  missing  opportunities  to  increase  investment  and  jobs  and  to  use  tourism  revenues  to  conserve  the environment and sustainably support communities in all parts of the island.

Vision of Sri Lanka Tourism - To be recognized as the world’s finest island for memorable, Authentic and diverse experiences.

Tourism is a composition of activities, services, and individuals, that deliver a travel experiences for individuals and groups that are travelling away from home.

tourism  services,  lack  of  proper  promotional means,  and  unskilled  employers  etc.   We  can minimize  the negative effect of those factors by sharing more and more exclusive and diverse positive experiences in Sri Lanka with the world. 

OneSri.com was initiated to promote Sri Lanka in the world place. Our aim is to provide exclusive and diverse positive experiences in Sri Lanka and link Sri Lanka with rest of the world. We create this website for people who love Sri Lanka to share with us their exclusive and diverse positive experiences in Sri Lanka, which can be used for the betterment of the Sri Lankan Society. The web domain is https://www.onesri.com.lk/ and it is hosted in a private secured server.

Mission of Sri Lanka Tourism - To be a high-value destination offering extraordinary experiences that reflect Sri Lanka’s natural and cultural heritage, are socially inclusive and environmentally responsible, and provide economic benefits to communities and the country.

However, Sri Lanka’s name has been ruined in the  international contest, due to various reasons.  If you see the news on various channels outside of Sri Lanka; are mostly broadcasted various negative news on polluted beaches, political unrest, corruptions, ethnic issues, strikes, uprising underworld gangs, and drug smuggling etc. We believe that the main reason for low performance in Sri Lankan Tourism in compare to other major tourism countries is the negative effect of various factors such as below standard infrastructure facilities, poor quality 

OneSri.com encourages its accountholders/users to post/share their exclusive and diverse positive experiences in Sri Lanka, which can be used for uplifting the image of Sri Lanka as well as Tourism in Sri Lanka.  This way the site will have many postings on various exclusive positive experience and these postings will be attracted by so many viewers around the world who are interested in Sri Lanka as well as Sri Lankan Tourism. 

Our Vision - To become one of the most trusted independent websites for exclusive information on Sri Lanka. 

The website is comprised of 3 major section such as “My Experience”, “My Business”, and “Useful Information”. 

• My Experience; users can share their Unique and Diverse experiences in Sri Lanka for others benefits, • My Business; people who run their businesses can list their business activities for Free of Charge in the site, • Useful information; the site lists so many websites/links on Sri Lanka and Sri Lankan Tourism in various topics 

(15) such as “Travels & Tours”, “Hotels & Accommodation”, “Nature & Wildlife”, etc. 

One of our main objectives is to provide opportunities for self-employed low-level skilled/unskilled categories of people to promote their products and services. 

OneSri.com also provides  information on almost all  the relevant fields (except for Politics, Gossips and any filthy stuff) about Sri Lanka for the benefit of viewers who are interested in Sri Lanka.

Although there are so many websites available for reviewing and providing feedback for various services in the tourism industry in Sri Lanka, there is no any single platform where a tourist can access to all sort of services and items related to the tourism industry and get an overall big picture about Sri Lanka and specially Sri Lankan Tourism. 

Founder of www.onesri.com.lk  is  Chelliah  Srikanth;  a member  of  Doha  chapter  of  Chartered Accountants of Sri Lanka. He  is a  fellow member of the  institute (FCA) and an Associate member of Chartered  Institute of Management Accountants of United Kingdom (ACMA-UK). He  is also an MBA holder  from Postgraduate Institute of Management (PIM). Presently he is working as Chief Financial Officer (CFO) of Tanween Group of Companies.

22

www.onesri.com.lk For UniquePositive experiences inSri Lanka

Sri Lanka is a beautiful country, where you can find endless beaches, timeless ruins verdant greenery, well-conserved flora and fauna, friendly people and delicious food. Sri Lanka is one of the most preferred travelling destinations among global travelers. Tourism in Sri Lanka has been a story of untapped potential. The country is  missing  opportunities  to  increase  investment  and  jobs  and  to  use  tourism  revenues  to  conserve  the environment and sustainably support communities in all parts of the island.

Vision of Sri Lanka Tourism - To be recognized as the world’s finest island for memorable, Authentic and diverse experiences.

Tourism is a composition of activities, services, and individuals, that deliver a travel experiences for individuals and groups that are travelling away from home.

tourism  services,  lack  of  proper  promotional means,  and  unskilled  employers  etc.   We  can minimize  the negative effect of those factors by sharing more and more exclusive and diverse positive experiences in Sri Lanka with the world. 

OneSri.com was initiated to promote Sri Lanka in the world place. Our aim is to provide exclusive and diverse positive experiences in Sri Lanka and link Sri Lanka with rest of the world. We create this website for people who love Sri Lanka to share with us their exclusive and diverse positive experiences in Sri Lanka, which can be used for the betterment of the Sri Lankan Society. The web domain is https://www.onesri.com.lk/ and it is hosted in a private secured server.

Mission of Sri Lanka Tourism - To be a high-value destination offering extraordinary experiences that reflect Sri Lanka’s natural and cultural heritage, are socially inclusive and environmentally responsible, and provide economic benefits to communities and the country.

However, Sri Lanka’s name has been ruined in the  international contest, due to various reasons.  If you see the news on various channels outside of Sri Lanka; are mostly broadcasted various negative news on polluted beaches, political unrest, corruptions, ethnic issues, strikes, uprising underworld gangs, and drug smuggling etc. We believe that the main reason for low performance in Sri Lankan Tourism in compare to other major tourism countries is the negative effect of various factors such as below standard infrastructure facilities, poor quality 

OneSri.com encourages its accountholders/users to post/share their exclusive and diverse positive experiences in Sri Lanka, which can be used for uplifting the image of Sri Lanka as well as Tourism in Sri Lanka.  This way the site will have many postings on various exclusive positive experience and these postings will be attracted by so many viewers around the world who are interested in Sri Lanka as well as Sri Lankan Tourism. 

Our Vision - To become one of the most trusted independent websites for exclusive information on Sri Lanka. 

The website is comprised of 3 major section such as “My Experience”, “My Business”, and “Useful Information”. 

• My Experience; users can share their Unique and Diverse experiences in Sri Lanka for others benefits, • My Business; people who run their businesses can list their business activities for Free of Charge in the site, • Useful information; the site lists so many websites/links on Sri Lanka and Sri Lankan Tourism in various topics 

(15) such as “Travels & Tours”, “Hotels & Accommodation”, “Nature & Wildlife”, etc. 

One of our main objectives is to provide opportunities for self-employed low-level skilled/unskilled categories of people to promote their products and services. 

OneSri.com also provides  information on almost all  the relevant fields (except for Politics, Gossips and any filthy stuff) about Sri Lanka for the benefit of viewers who are interested in Sri Lanka.

Although there are so many websites available for reviewing and providing feedback for various services in the tourism industry in Sri Lanka, there is no any single platform where a tourist can access to all sort of services and items related to the tourism industry and get an overall big picture about Sri Lanka and specially Sri Lankan Tourism. 

Founder of www.onesri.com.lk  is  Chelliah  Srikanth;  a member  of  Doha  chapter  of  Chartered Accountants of Sri Lanka. He  is a  fellow member of the  institute (FCA) and an Associate member of Chartered  Institute of Management Accountants of United Kingdom (ACMA-UK). He  is also an MBA holder  from Postgraduate Institute of Management (PIM). Presently he is working as Chief Financial Officer (CFO) of Tanween Group of Companies.

23

Why accountants need toembrace robotics and intelligentautomation?

Accountancy is a traditional profession meaning that, while  technologies  like  automation  are  helping  it leaps and bounds, it can be difficult to get people on board.

While  digital  innovation  and  new  technology  is developing at a faster pace than ever before, every industry has to adapt to new process and ways of working all the time. Some businesses are embracing this,  and many  have  even  thrived  or  been  created because of  it, but the accounting industry generally has found it a challenge.

Accountancy  is  an  age  old  profession,  traditionally very process-driven;  thus bringing  technologies  like robotics  and  automation  into  the mix  has  not  only changed what  clients  expect  from  the  service  they pay for, but also the way accountants work and what their  core  responsibilities  are.

Automation  is  no  longer  breaking  news,  yet  many accountancy firms still have a way to go before they are making use of all efficiencies available to them. Thus,  the  next  step  for many  accountancy  firms  is to shift their mindset, to welcome digital innovation with open arms, and taking action to make it happen.

A shift in focus and expectations

Before jumping into the ‘how’ it’s crucial to address the  ‘why’. Yes, everyone  is  talking about robots, AI, and  automation,  but  why  should  accountants  turn their interest to this?Efficiency  and  productivity  of  the  business  is  the overarching  reason.  While  business  productivity  is growing, by using new technology to take on manual tasks and do them in a much quicker time, businesses are far more productive, and employees can focus on more meaningful work.

Automation  will  also  help  businesses  seem  more appealing  to  younger  generations. While  the  older generations  need  to  accept  change,  learn  new skills,  and adapt  the way  they work, millennial  and Gen  Z  workers  are  more  likely  to  come  into  new jobs  expecting  to  see  innovation,  technological 

development,  and  modern  working  methods  like flexible and remote working. In a world where typing questions into Google is becoming too long-winded, the generation who grew up with the internet more or less demand quick and efficient ways of working. Moreover, if millennials are starting to make up more of the general workforce, they will certainly soon make  up  a  large  part  of  your  client  base, meaning the accountancy sector must adapt in line with their preferences.

Finally, new technologies are a large part of why flexible  working  has  become  so  easy  for  many companies to adopt. If staff can do all or most of their work  remotely,  and  choose when,  how,  and where they work, they are automatically  likely to be more efficient  and  satisfied  with  their  job.  Subsequently they will produce more output for the company and stay  there  for  longer,  removing  the  costs  and  time associated with hiring.

Why invest in robotics?

As  well  as  being  an  overall  benefit  for  businesses, accounting firms should consider investing in robotics because of the increasing need for data. The practice of  modern  accounting  screams  the  need  for  the collection,  transformation, and visualisation of data and the scale of this demand cannot be handled by even  the most  skilled data  scientists.  This  is where robotics  comes  in.

Phrases  like  robotics,  AI,  and  automation  are thrown around and it can be difficult to pinpoint the difference between them. The key thing to remember is robotics  is one form of automation but there are other  types  of  automation  that  can be useful  too.

Robotic  Process  Automation  (RPA),  which  some accounting  firms  have  been  using  for  a while  now, is  a  form  of  business  process  automation  based loosely on the  idea of having software robots or AI workers. Even more advanced than this is Intelligent 

Automation  (IA).  IA  is  a  combination  of  artificial intelligence  and  automation.  It  is  already  helping companies  become  more  efficient  and  produce  a higher  quality  of  output  than  ever  before.  Some accounting  firms  are  already  enjoying  the  benefits it  brings,  replacing  manual  tasks  that  traditionally took time, and leaving accountants to focus on more strategic, advisory work.

IA delivers a whole new  layer  to RPA;  it  learns and adapts  from  automation  as  it  has  more  advanced artificial intelligence (AI), finding better ways to help enhance  human  potential.

Robotics  is  one  piece  of  the  puzzle;  the  key  to unlocking  real  potential  is  what  can  be  built  upon RPA. Once a practice has seen the value of automating one process, other processes will follow with ease and the potential will continue to grow and evolve. This is why it is important to consider a future-proof provider  to  embark  on  this  journey.

The benefits of automation

While  many  accounting  firms,  and  the  workers within them, may feel nervous about changing their processes  after  so  long  and  believe  that  adopting automation  brings  risks  around  security,  the  true value of this new technology needs to be recognized.

The  key  difference between RPA  and  IA  is  that  the former  performs  simple  automation  tasks,  such  as answering a set of questions in a live chat. Whereas IA can go a step, further. A virtual worker can mimic a human interaction, understand inferred meaning as well develop heuristic learning (using historical data and trends to adapt an action or activity). Activities such as creating a contact in your CRM and updating its information across various data sources can be in seconds. A virtual worker can even log into a portal like HRMC and update the data there! This enables humans to focus on the real work, giving them more time to concentrate on key decision-making.

The best  thing about adopting  IA  is  that a business can start with RPA, and then decide at a later stage to turn on IA. Practices can begin by introducing RPA to their business, but invest for the long term with IA. This will enable practices to evolve with next phase of digital  transformation, which  in  turn will contribute to business growth in the future.

This  is why  investing  in  IA now  is  a  smart business decision. It can be turned on at any point in an

accounting firm’s digital  journey. Practices can  save themselves time and money by investing in RPA and IA together now, rather than going through another process of onboarding a new technology in a couple of years’ time. Why not be ahead  in  the digital era and  gain  a  truly  competitive  edge?

According to studies, RPA can bring up to 80 percent cost reduction and an 80 to 90 percent reduction in the time taken to perform tasks.

There  is  also  a  significant  improvement  in  the quality  of  output,  since  the  risk  of  human  error  is removed. Often RPA is even simple to bring into your business, since it can usually bolt on to existing ERP systems.   Intelligent  automation  can  be  simple  to bring into a business, as processes do not have to be re-engineered to work with the new tool. IA behaves like a human; if you can teach a new starter to follow a process then you can teach a virtual worker.

Getting people on board

The  major  challenge  for  accounting  firms  now  is getting their people on board with IA. We mentioned that accountancy is not a sector traditionally known for its love of innovation, and so getting people’s buy-in has been one of the biggest challenges firms have faced.

The  same  goes  for  automation  and  the way  to  get employees  on  board  is  to  really  show  them  what benefits  they  can  personally  reap  if  the  business adopts this new technology.

People’s  jobs will become  less filled with  individual manual  tasks  and  far more  focused  on meaningful work. For some, this might mean a smaller workload and therefore less stress all while they are taking on more responsibility. This should translate  into more job satisfaction and a better work-life balance.

If  individuals  gain more  satisfaction  from  their  job, this  should  translate  into  a  better  overall  company culture.  By  improving  processes,  firms  can  adopt  a more  agile  and modern  company  culture.

Ultimately  it  is  about  showing  staff  the  benefits  to them and the benefits to the business of embracing automation while also assuring them they will receive any support and training necessary to continue doing their  job  well.  It  is  also  about  giving  your  clients a  higher  quality,  more  efficient  service,  therefore maintaining  business  growth  across  your  practice.

24

Why accountants need toembrace robotics and intelligentautomation?

Accountancy is a traditional profession meaning that, while  technologies  like  automation  are  helping  it leaps and bounds, it can be difficult to get people on board.

While  digital  innovation  and  new  technology  is developing at a faster pace than ever before, every industry has to adapt to new process and ways of working all the time. Some businesses are embracing this,  and many  have  even  thrived  or  been  created because of  it, but the accounting industry generally has found it a challenge.

Accountancy  is  an  age  old  profession,  traditionally very process-driven;  thus bringing  technologies  like robotics  and  automation  into  the mix  has  not  only changed what  clients  expect  from  the  service  they pay for, but also the way accountants work and what their  core  responsibilities  are.

Automation  is  no  longer  breaking  news,  yet  many accountancy firms still have a way to go before they are making use of all efficiencies available to them. Thus,  the  next  step  for many  accountancy  firms  is to shift their mindset, to welcome digital innovation with open arms, and taking action to make it happen.

A shift in focus and expectations

Before jumping into the ‘how’ it’s crucial to address the  ‘why’. Yes, everyone  is  talking about robots, AI, and  automation,  but  why  should  accountants  turn their interest to this?Efficiency  and  productivity  of  the  business  is  the overarching  reason.  While  business  productivity  is growing, by using new technology to take on manual tasks and do them in a much quicker time, businesses are far more productive, and employees can focus on more meaningful work.

Automation  will  also  help  businesses  seem  more appealing  to  younger  generations. While  the  older generations  need  to  accept  change,  learn  new skills,  and adapt  the way  they work, millennial  and Gen  Z  workers  are  more  likely  to  come  into  new jobs  expecting  to  see  innovation,  technological 

development,  and  modern  working  methods  like flexible and remote working. In a world where typing questions into Google is becoming too long-winded, the generation who grew up with the internet more or less demand quick and efficient ways of working. Moreover, if millennials are starting to make up more of the general workforce, they will certainly soon make  up  a  large  part  of  your  client  base, meaning the accountancy sector must adapt in line with their preferences.

Finally, new technologies are a large part of why flexible  working  has  become  so  easy  for  many companies to adopt. If staff can do all or most of their work  remotely,  and  choose when,  how,  and where they work, they are automatically  likely to be more efficient  and  satisfied  with  their  job.  Subsequently they will produce more output for the company and stay  there  for  longer,  removing  the  costs  and  time associated with hiring.

Why invest in robotics?

As  well  as  being  an  overall  benefit  for  businesses, accounting firms should consider investing in robotics because of the increasing need for data. The practice of  modern  accounting  screams  the  need  for  the collection,  transformation, and visualisation of data and the scale of this demand cannot be handled by even  the most  skilled data  scientists.  This  is where robotics  comes  in.

Phrases  like  robotics,  AI,  and  automation  are thrown around and it can be difficult to pinpoint the difference between them. The key thing to remember is robotics  is one form of automation but there are other  types  of  automation  that  can be useful  too.

Robotic  Process  Automation  (RPA),  which  some accounting  firms  have  been  using  for  a while  now, is  a  form  of  business  process  automation  based loosely on the  idea of having software robots or AI workers. Even more advanced than this is Intelligent 

Automation  (IA).  IA  is  a  combination  of  artificial intelligence  and  automation.  It  is  already  helping companies  become  more  efficient  and  produce  a higher  quality  of  output  than  ever  before.  Some accounting  firms  are  already  enjoying  the  benefits it  brings,  replacing  manual  tasks  that  traditionally took time, and leaving accountants to focus on more strategic, advisory work.

IA delivers a whole new  layer  to RPA;  it  learns and adapts  from  automation  as  it  has  more  advanced artificial intelligence (AI), finding better ways to help enhance  human  potential.

Robotics  is  one  piece  of  the  puzzle;  the  key  to unlocking  real  potential  is  what  can  be  built  upon RPA. Once a practice has seen the value of automating one process, other processes will follow with ease and the potential will continue to grow and evolve. This is why it is important to consider a future-proof provider  to  embark  on  this  journey.

The benefits of automation

While  many  accounting  firms,  and  the  workers within them, may feel nervous about changing their processes  after  so  long  and  believe  that  adopting automation  brings  risks  around  security,  the  true value of this new technology needs to be recognized.

The  key  difference between RPA  and  IA  is  that  the former  performs  simple  automation  tasks,  such  as answering a set of questions in a live chat. Whereas IA can go a step, further. A virtual worker can mimic a human interaction, understand inferred meaning as well develop heuristic learning (using historical data and trends to adapt an action or activity). Activities such as creating a contact in your CRM and updating its information across various data sources can be in seconds. A virtual worker can even log into a portal like HRMC and update the data there! This enables humans to focus on the real work, giving them more time to concentrate on key decision-making.

The best  thing about adopting  IA  is  that a business can start with RPA, and then decide at a later stage to turn on IA. Practices can begin by introducing RPA to their business, but invest for the long term with IA. This will enable practices to evolve with next phase of digital  transformation, which  in  turn will contribute to business growth in the future.

This  is why  investing  in  IA now  is  a  smart business decision. It can be turned on at any point in an

accounting firm’s digital  journey. Practices can save themselves time and money by investing in RPA and IA together now, rather than going through another process of onboarding a new technology in a couple of years’ time. Why not be ahead  in  the digital era and  gain  a  truly  competitive  edge?

According to studies, RPA can bring up to 80 percent cost reduction and an 80 to 90 percent reduction in the time taken to perform tasks.

There  is  also  a  significant  improvement  in  the quality  of  output,  since  the  risk  of  human  error  is removed. Often RPA is even simple to bring into your business, since it can usually bolt on to existing ERP systems.   Intelligent  automation  can  be  simple  to bring into a business, as processes do not have to be re-engineered to work with the new tool. IA behaves like a human; if you can teach a new starter to follow a process then you can teach a virtual worker.

Getting people on board

The  major  challenge  for  accounting  firms  now  is getting their people on board with IA. We mentioned that accountancy is not a sector traditionally known for its love of innovation, and so getting people’s buy-in has been one of the biggest challenges firms have faced.

The  same  goes  for  automation  and  the way  to  get employees  on  board  is  to  really  show  them  what benefits  they  can  personally  reap  if  the  business adopts this new technology.

People’s  jobs will become  less filled with  individual manual  tasks  and  far more  focused  on meaningful work. For some, this might mean a smaller workload and therefore less stress all while they are taking on more responsibility. This should translate  into more job satisfaction and a better work-life balance.

If  individuals  gain more  satisfaction  from  their  job, this  should  translate  into  a  better  overall  company culture.  By  improving  processes,  firms  can  adopt  a more  agile  and modern  company  culture.

Ultimately  it  is  about  showing  staff  the  benefits  to them and the benefits to the business of embracing automation while also assuring them they will receive any support and training necessary to continue doing their  job  well.  It  is  also  about  giving  your  clients a  higher  quality,  more  efficient  service,  therefore maintaining  business  growth  across  your  practice.

25

The internal rate of return (IRR) can be defined as the rate of return that makes the net present value (NPV) of all cash flows equal to zero. 

When evaluating the feasibility of a project sometimes you may be asked to calculate Project IRR and Equity IRR. Have you ever come across a situation like this?

Calculating project  IRR and equity  IRR can be tricky. Considering only the project cash flows (excluding the financing cash flows) gives us the project IRR whereas Equity IRR takes into account only the cash flows net of financing. If the project is fully funded by equity, the project IRR and Equity IRR will the same. If the project is fully funded by the debt, equity IRR simply doesn’t exist.

This is demonstrated below:

Difference betweenProject IRR and Equity IRR:DifferencebetweenProjectIRRandEquityIRR:

Theinternalrateofreturn(IRR)canbedefinedastherateofreturnthatmakesthenetpresentvalue(NPV)ofallcashflowsequaltozero.

WhenevaluaDng the feasibilityofaproject someDmesyoumaybeasked tocalculateProject IRRandEquityIRR.HaveyouevercomeacrossasituaDonlikethis?

CalculaDngproject IRRandequity IRRcanbetricky.Consideringonlytheprojectcashflows(excludingthefinancingcashflows)givesus theproject IRRwhereasEquity IRRtakes intoaccountonly thecashflowsnet of financing. If theproject is fully fundedby equity, theproject IRR and Equity IRRwill thesame.Iftheprojectisfullyfundedbythedebt,equityIRRsimplydoesn’texist.

Thisisdemonstratedbelow:

P

Construction Cost $100,000Annual Rental Income $11,500Sale Value $160,000

Equity Contribution 40%Debt Contribution 60%Cost of Equity 13%Cost of Debt 6%WACC 8.8%

Project Cash flowYear 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Construction Cost (100,000) - - - - - - - - - - Rental Income - 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 Sale Value - - - - - - - - - - 160,000 Total Cash Flow (100,000) 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 171,500

Project IRR 14.5%

Financing Cash flowLoan Drawdown 60,000 - - - - - - - - - - Equity Contribution 40,000 - - - - - - - - - - Rental Income - 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 Sale Value - - - - - - - - - - 160,000 Interest + PrincipalPayment - (8,152) (8,152) (8,152) (8,152) (8,152) (8,152) (8,152) (8,152) (8,152) (8,152) Net Cash Flow (40,000) 3,348 3,348 3,348 3,348 3,348 3,348 3,348 3,348 3,348 163,348

Cash Flow to Equity Holders (40,000) 3,348 3,348 3,348 3,348 3,348 3,348 3,348 3,348 3,348 163,348

Equity IRR 20.0%

26

VenueMarriott Hotel, Doha

20th October 2017Be Ethical,

Be successful

Key note Speaker: Mr. Reyaz Mihular- Manager Partner KPMG SriLankaPanelists: Mr. Gopal Balasubramaniam, Partner KPMG Qatar Mr. Richard Stears- Executive Director Finance, UDC

The chapter’s mega technical event of the year was attended by over 60 members and professionals from other associations. Mr. Reyaz Mihular has delivered the key note speech followed by the panel discussion involving of Mr. Gopal Balasubramaniam & Mr. Richard Stears and moderated by Mr. Rizwan Yaseen, Director KPMG Qatar. The session stressed the importance of ethical aspects such as sound leadership, principles of ethics and link between ethical behaviour vs. success of the business.

Mr. Reyaz Mihular is the Managing Partner of KPMG Sri Lanka and is the Chairman of KPMG’s Middle East & South Asia (MESA) regional board. He has served as a member of KPMG’s MESA Board since 2012 and is the first Sri Lankan professional to be appointed as a leader in a global capacity within the Big 4 accounting firms in Sri Lanka.

In his 40 years with KPMG, Mr. Mihular held a number of leadership positions including as MESA region’s Chief Operating Officer and as a member of KPMG’s Global Corporate Finance Board. He was a Board Member of the International Accounting Standards Committee and subsequently a Member of the Standards Advisory Council of the International Accounting Standards Board. He is presently a Board Member of the International Ethics Standards Board for Accountants (IESBA). He was also a Past President of the Institute of Chartered Accountants of Sri Lanka and Chaired the Sri Lanka Division of the

Chartered Institute of Management Accountants. Mr. Reyaz is a Fellow of CA Sri Lanka and is a Fellow of the Chartered Institute of Management Accountants (CIMA).

Mr. Gopal Balasubramaniam is the Head of Energy & Natural Resources for Middle East and South Asia and leads KPMG Qatar’s Technology, Media and Telecommunications practice. He has over 25 years’ experience providing Audit, Advisory and Tax services to a wide range of KPMG’s clients in Qatar. He specializes in the oil and gas industry, leading KPMG MESA’s Oil and Gas practice and regularly attends and addresses at KPMG’s global energy conference and various other industry events. Mr. Gopal is a Fellow member of the Institute of Chartered Accountants of India and Associate member of the Institute of Cost & Works Accountants of India. Mr. Richard Stears is the Executive Director Finance at United Development Company (UDC). Prior to joining UDC, he had served as Head of Finance at Gulf Drilling International, Limited. He has a span of 21 years working as a Treasurer, Finance Manager, Commercial Planning Manager and Marketing & Business Development Manager for several international oil and gas operators based in the USA and throughout Southeast Asia. Mr. Richard served as Certified Public Accountant for one of the Big 4 firms of Deloitte Haskins & Sells in Denver, Colorado.

28

VenueMarriott Hotel, Doha

20th October 2017Be Ethical,

Be successful

Key note Speaker: Mr. Reyaz Mihular- Manager Partner KPMG SriLankaPanelists: Mr. Gopal Balasubramaniam, Partner KPMG Qatar Mr. Richard Stears- Executive Director Finance, UDC

The chapter’s mega technical event of the year was attended by over 60 members and professionals from other associations. Mr. Reyaz Mihular has delivered the key note speech followed by the panel discussion involving of Mr. Gopal Balasubramaniam & Mr. Richard Stears and moderated by Mr. Rizwan Yaseen, Director KPMG Qatar. The session stressed the importance of ethical aspects such as sound leadership, principles of ethics and link between ethical behaviour vs. success of the business.

Mr. Reyaz Mihular is the Managing Partner of KPMG Sri Lanka and is the Chairman of KPMG’s Middle East & South Asia (MESA) regional board. He has served as a member of KPMG’s MESA Board since 2012 and is the first Sri Lankan professional to be appointed as a leader in a global capacity within the Big 4 accounting firms in Sri Lanka.

In his 40 years with KPMG, Mr. Mihular held a number of leadership positions including as MESA region’s Chief Operating Officer and as a member of KPMG’s Global Corporate Finance Board. He was a Board Member of the International Accounting Standards Committee and subsequently a Member of the Standards Advisory Council of the International Accounting Standards Board. He is presently a Board Member of the International Ethics Standards Board for Accountants (IESBA). He was also a Past President of the Institute of Chartered Accountants of Sri Lanka and Chaired the Sri Lanka Division of the

Chartered Institute of Management Accountants. Mr. Reyaz is a Fellow of CA Sri Lanka and is a Fellow of the Chartered Institute of Management Accountants (CIMA).

Mr. Gopal Balasubramaniam is the Head of Energy & Natural Resources for Middle East and South Asia and leads KPMG Qatar’s Technology, Media and Telecommunications practice. He has over 25 years’ experience providing Audit, Advisory and Tax services to a wide range of KPMG’s clients in Qatar. He specializes in the oil and gas industry, leading KPMG MESA’s Oil and Gas practice and regularly attends and addresses at KPMG’s global energy conference and various other industry events. Mr. Gopal is a Fellow member of the Institute of Chartered Accountants of India and Associate member of the Institute of Cost & Works Accountants of India. Mr. Richard Stears is the Executive Director Finance at United Development Company (UDC). Prior to joining UDC, he had served as Head of Finance at Gulf Drilling International, Limited. He has a span of 21 years working as a Treasurer, Finance Manager, Commercial Planning Manager and Marketing & Business Development Manager for several international oil and gas operators based in the USA and throughout Southeast Asia. Mr. Richard served as Certified Public Accountant for one of the Big 4 firms of Deloitte Haskins & Sells in Denver, Colorado.

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Mr. Hasan is the Manager of Talent Acquisition and Retention at Qatar Cool. He is a certified HR practitioner, trainer and mentor, with over 20 years of experience in the GCC, Asia and Asia Pacific regions. With substantial experience in multiple sectors, ranging from industrial construction, manufacturing, utilities and chemicals to education and healthcare, he blends theory with leading practices, shares case studies and live examples from local and international market.

Mr. Hasan is the holder of Postgraduate degrees in

Human Psychology and Business Administration. He has also attained the Chartered Manager Status from Chartered Management Institute (CMI) UK and a Chartered Member of Chartered Institute of Personnel and Development (CIPD) UK. He is also Certified Professional Member of American Institute of Business Psychology (AIOBP) and Australian Human Resources Institute (AHRI).

The session was designed to cover the tips on how to get along with people in different situations by engaging the participants in-group role-play exercises.

Guest speaker: Mr.Hasan Imam Khawaja

VenueRadisson Blue, Doha08th November 2017

Getting along with People

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Mr. Hasan is the Manager of Talent Acquisition and Retention at Qatar Cool. He is a certified HR practitioner, trainer and mentor, with over 20 years of experience in the GCC, Asia and Asia Pacific regions. With substantial experience in multiple sectors, ranging from industrial construction, manufacturing, utilities and chemicals to education and healthcare, he blends theory with leading practices, shares case studies and live examples from local and international market.

Mr. Hasan is the holder of Postgraduate degrees in

Human Psychology and Business Administration. He has also attained the Chartered Manager Status from Chartered Management Institute (CMI) UK and a Chartered Member of Chartered Institute of Personnel and Development (CIPD) UK. He is also Certified Professional Member of American Institute of Business Psychology (AIOBP) and Australian Human Resources Institute (AHRI).

The session was designed to cover the tips on how to get along with people in different situations by engaging the participants in-group role-play exercises.

Guest speaker: Mr.Hasan Imam Khawaja

VenueRadisson Blue, Doha08th November 2017

Getting along with People

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VenueRadisson Blue, Doha29th November 2017

IFRS Update (IFRS 15 & 9)

Mr. Yusuf has more than 15 years of audit and accounting advisory experience with KPMG and other Big 4 accounting firms in Saudi Arabia, USA, Qatar and India. He is a specialist in Financial Services Sector mainly with the Banking (Conventional and Islamic) and Asset Management clients. He has worked on a number of global accounts from various sectors including Financial Services, Real Estate and Service Sectors. In addition, Yusuf has also worked on Initial Public Offerings, raising of funds through Euro Linked Notes.

In Qatar, Mr. Yusuf is the Head of Accounting Advisory Services and Department of Professional Practice. He has also conducted training on IFRS topics in Qatar.

He has advised a number of reputed organizations in accounting analysis and impact analysis on new IFRSs.

He manages a number of esteemed clients including Qatar Exchange listed entities and Private Groups.

Mr. Rizwan Yaseen graduated from the University of Colombo in commerce and began his career as an Auditor at KPMG Sri Lanka while being a visiting lecturer at the same University where he graduated.

He is currently managing a portfolio of clients including leading banks at the Capacity of Audit Director. Mr. Rizwan has more than 14 years of audit experience with KPMG providing audit and advisory services to listed companies, large business groups and financial institutions. The session was structured to cover the new pronouncements and changes in IFRS 9- Financial Instruments and IFRS 15-Revenue from Contracts with Customers.

Guest speakers: Mr. Yusuf Sayed, Director-KPMG Qatar Mr. Rizwan Yaseen, Director-KPMG Qatar

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VenueRadisson Blue, Doha29th November 2017

IFRS Update (IFRS 15 & 9)

Mr. Yusuf has more than 15 years of audit and accounting advisory experience with KPMG and other Big 4 accounting firms in Saudi Arabia, USA, Qatar and India. He is a specialist in Financial Services Sector mainly with the Banking (Conventional and Islamic) and Asset Management clients. He has worked on a number of global accounts from various sectors including Financial Services, Real Estate and Service Sectors. In addition, Yusuf has also worked on Initial Public Offerings, raising of funds through Euro Linked Notes.

In Qatar, Mr. Yusuf is the Head of Accounting Advisory Services and Department of Professional Practice. He has also conducted training on IFRS topics in Qatar.

He has advised a number of reputed organizations in accounting analysis and impact analysis on new IFRSs.

He manages a number of esteemed clients including Qatar Exchange listed entities and Private Groups.

Mr. Rizwan Yaseen graduated from the University of Colombo in commerce and began his career as an Auditor at KPMG Sri Lanka while being a visiting lecturer at the same University where he graduated.

He is currently managing a portfolio of clients including leading banks at the Capacity of Audit Director. Mr. Rizwan has more than 14 years of audit experience with KPMG providing audit and advisory services to listed companies, large business groups and financial institutions. The session was structured to cover the new pronouncements and changes in IFRS 9- Financial Instruments and IFRS 15-Revenue from Contracts with Customers.

Guest speakers: Mr. Yusuf Sayed, Director-KPMG Qatar Mr. Rizwan Yaseen, Director-KPMG Qatar

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VenueRadisson Blue, Doha

26 January, 2018

Essential leadership skills

for professionals

Guest speaker: Professor Ajantha Dharmasiri

Professor Ajantha Dharmasiri is the Director and the Chairman of the Board of Management of the Postgraduate Institute of Management, University of Sri Jayewardenepura. He is the Honorary President of the Institute of Personnel Management (IPM), Sri Lanka. He was recently appointed as the Vice President of the Asia Pacific Federation of Human Resource Management (APFHRM). He also serves as an Adjunct Professor at the Price College of Business, University of Oklahoma, USA. He has over 25 years of both private and public sector experience including Unilever and Nestle. He has engaged in consultancies in over fifteen countries in Africa, Asia and the Middle East. He is a Commonwealth AMDISA Doctoral Fellow, Fulbright Postdoctoral Fellow and Commonwealth Postdoctoral Fellow.

Professor Dharmasiri holds a Ph.D. and an MBA from the Postgraduate Institute of Management and a B.Sc. in

Electrical Engineering from the University of Moratuwa. He is a Chartered Electrical Engineer, a Member of the Chartered Institute of Management, UK and an independent director of several boards. Being an author of six books, he has won many accolades including gold medals for best papers in two international management conferences, Emerald best paper award in 2014, and in 2010, and the platinum award by the Alumni of the Postgraduate Institute of Management (PIMA) for outstanding academic contribution. He also won the prestigious IPM Lifetime Gold Award 2014, the highest honour for an HR professional in Sri Lanka. Prof. Dharmasiri likes to identify himself as one who transitioned from being an “Engineer of Electrical” to an “Engineer of Hearts and Minds.”

The session emphasized the importance of strong leadership, effective leadership traits and various contemporary examples of vital leadership skills.

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VenueRadisson Blue, Doha

26 January, 2018

Essential leadership skills

for professionals

Guest speaker: Professor Ajantha Dharmasiri

Professor Ajantha Dharmasiri is the Director and the Chairman of the Board of Management of the Postgraduate Institute of Management, University of Sri Jayewardenepura. He is the Honorary President of the Institute of Personnel Management (IPM), Sri Lanka. He was recently appointed as the Vice President of the Asia Pacific Federation of Human Resource Management (APFHRM). He also serves as an Adjunct Professor at the Price College of Business, University of Oklahoma, USA. He has over 25 years of both private and public sector experience including Unilever and Nestle. He has engaged in consultancies in over fifteen countries in Africa, Asia and the Middle East. He is a Commonwealth AMDISA Doctoral Fellow, Fulbright Postdoctoral Fellow and Commonwealth Postdoctoral Fellow.

Professor Dharmasiri holds a Ph.D. and an MBA from the Postgraduate Institute of Management and a B.Sc. in

Electrical Engineering from the University of Moratuwa. He is a Chartered Electrical Engineer, a Member of the Chartered Institute of Management, UK and an independent director of several boards. Being an author of six books, he has won many accolades including gold medals for best papers in two international management conferences, Emerald best paper award in 2014, and in 2010, and the platinum award by the Alumni of the Postgraduate Institute of Management (PIMA) for outstanding academic contribution. He also won the prestigious IPM Lifetime Gold Award 2014, the highest honour for an HR professional in Sri Lanka. Prof. Dharmasiri likes to identify himself as one who transitioned from being an “Engineer of Electrical” to an “Engineer of Hearts and Minds.”

The session emphasized the importance of strong leadership, effective leadership traits and various contemporary examples of vital leadership skills.

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After visiting six flood affected schools in Galle and Matara districts, the Chapter selected Kithalagama Maha Vidyalaya- Matara to replace the school’s broken computers and to refurbish their computer lab. The generous contribution from members has strengthened our will of helping the needy children from the school.

The Scholarship Fund was launched during 2013/2014 Members’ Night event with a view of helping needy CA Students in Sri Lanka. There are many talented Sri Lankan students wish to progress their studies and enter in to a decent finance and accounting career, however their desires are shattered in front of financial difficulties. The Chapter opened up an opportunity for the members to support for some of these and Executive Committee requests members to participate by making valuable contribution to grow the fund. The Chapter setup scholarship fund of LKR 1 Mn with the CASL during the year.

SuccessfulFlood Relief Project

Establishment of Scholarship Fund for needy CA Students in Sri Lanka

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The chapter hosted its ninth annual members night “CONGREGARE 2018” at Intercontinental Hotel, Doha on 11 May 2018. Members along with their families enthusiastically participated in this most anticipated event for the year. The chief guest of the event was Mr. Manil Jayasinghe, Vice President of the Institute of Chartered Accountants of Sri Lanka.

The highlight of the night was the scintillating performance by the popular artist Visharada Edward Jayakody who flown all the way from Sri Lanka and entertained the evening with his sensational singing backed by energetic music by the band. Games for kids, dance competition for couples & individuals and raffle draws comprised as part of the event too.

Congregare 2018 Members nightVenue: Intercontinental Hotel, Doha 11 May, 2018

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Congregare 2018 Members nightVenue: Intercontinental Hotel, Doha 11 May, 2018

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CASL-QCPL Cricket Tournament 2017

The chapter conducted the eighth edition of CASL-Qatar premier league on 7th December 2017 at MIC cricket grounds in Mesaieed as a day night tournament. Contested by eight teams which have been “seeded” and divided into two groups. After the preliminary round, four teams qualified for the semifinal slots. EY Eagles led by Samuel Pradeep and EY Smashers led by Sajith Perera went through to the finals. EY Smashers became the Winners while EY Eagles became the Runners up for the second consecutive year.

Right hand batsman Kalum Madushanka of EY Smashers was awarded the “Man of the Final” for his 47 runs. Akalanka Wijesundara of Doha Tuskers became the Man of the Series as well as the Best Batsman of the Tournament for his splendid all-round performances. Shaman Punchihewa of Spartan Warriors was awarded the “Best Bowler” for his outstanding performances with the ball. Fair Play Award has been introduced for the first time in the tournament and Doha Tuskers were able to secure it.

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CASL-QCPL Cricket Tournament 2017

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GOLD SPONSORS

SILVER SPONSORS

PLATINUM SPONSOR

OTHER SPONSORS

GOLD SPONSORS

SILVER SPONSORS

PLATINUM SPONSOR

OTHER SPONSORS

Paduru Party

The Chapter conducted its fifth Paduru Party, a vogue of classical Sri Lankan Music, at Radission Blu Hotel, Doha on 02 March 2018.

The party was of unique nature where members’ back home nostalgic moments reappeared, with singers dressed up in customary attire entertaining with popular melodious songs coupled with the traditional sitting arrangements serving Sri Lankan food.

Songs sung by members and their families to the mellifluous tunes of Sri Lankan Band were the highlights of the night.

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Paduru Party

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Thank you note

2017/2018 was yet another amazing and sensational year for the chapter. The quality of technical programs and the grandeur of social events were the major highlights during the year, complemented with the two socially responsible projects back in Sri Lanka.

It gives us great pleasure and fulfillment in completing the ninth successful tenure. During this remarkable journey, the chapter has grown from strength to strength and has become the trendsetter for all overseas chapters of CA Sri Lanka. While cherishing these moments of success and progress, it is our obligation to pay gratitude to those members who served the chapter in various roles and different capacities.

We are greatly thankful for the continuous support and guidance given to us by our mother institute CA Sri Lanka. Special thanks to Mr. Jagath Perera, the President, Mr. Manel Jayasinghe, the Vice president and Mr. Dayananda Wijesekara, Examinations Consultant for making us feel that we are an integral part of the Institute and undetached by any means.

Our sincere appreciation goes to His excellency A.S.P. Liyanage, The Ambassador of Sri Lanka to the State of Qatar & the Patron of the Chapter and Mr. R. Kohularangan, Charge d’ affaires and the Embassy staff for their continuous assistance towards the smooth progress of the Chapter. We would like to reemphasize that our chapter would not have attained the current prestigious status without the much-needed support of the Sri Lankan Embassy in the State of Qatar.

We would also like to convey our heartiest gratitude to our past presidents who were instrumental in building this chapter and fostering it towards prosperity. A special thanks to our past President. Mr. Sujeewa Ranasinghe, members of the Executive Committee and members of all the sub-committees who gave off their best to carry out the activities of the Chapter during 2017/18.

It is with utmost pleasure, we say a big thank you to our sponsors for their fullest cooperation towards the events conducted by the chapter and all the members who were energetic in securing sponsorships to the Chapter.

Finally, we wish the incoming president, and members of the Executive Committee and all subcommittees to drive the chapter to a different league and to accomplish greater heights in the years to come.

Shahard NazirChairman- Annual Report Committee

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Chapter InformationApproved Chapter of the Institute ofChartered Accountants of Sri Lanka

Name

The Chartered Accountants of Sri Lanka – Qatar Chapter(Affiliated to the Embassy of Sri Lanka in the State of Qatar)

Address

The Embassy of Sri Lanka in the State of QatarP.O.Box: 19075Doha, State of Qatar.Email : icasl_doha@yahoo.com

Honrary Auditor

Mr. Sakthivel Sivakumar, ACA

Past Patrons

Mr. A.S.P Liyanage- March 2017 to March 2019(HE Ambassador of Sri Lanka to the State of Qatar)

Ms. K.H.C Sankapali- Jan 2017 to March 2017(Charge D’Affairs - Embassy of Sri Lanka to the State of Qatar)

Prof. (Dr.) W.M. Karunadasa – July 2015 to December 2016 (HE Ambassador of Sri Lanka to the State of Qatar)

Mr. Manjusri Jayantha Palipana – July 2011 to July 2015 (HE Ambassador of Sri Lanka to the State of Qatar)

Mr. A. Tharmakulasingham – Acting Patron of the Chapter -Jan 2011 to Jun 2011 (Charge D’Affairs - Embassy of Sri Lanka to the State of Qatar)

Mr. Vijayasiri Padukkage – Nov 2008 to Dec 2011 (HE Ambassador of Sri Lanka to the State of Qatar)

Past Presidents

Mr. Mohamed Lafir ACA 2016-2017Mr. Subashchandran Sundaralingam FCA 2015-2016 Mr. Sudarshana Wijesundara ACA 2014-2015 Mr. Saman Fernando FCA 2013-2014 Mr. Rukshan Karunaratne FCA 2012-2013 Mr. Rizwan Yaseen ACA 2011-2012 Mr. Felix Dayananda Ponweera FCA 2010-2011 Mr. M. Thayabaran FCA 2008-2010

Chapter InformationApproved Chapter of the Institute ofChartered Accountants of Sri Lanka

Name

The Chartered Accountants of Sri Lanka – Qatar Chapter(Affiliated to the Embassy of Sri Lanka in the State of Qatar)

Address

The Embassy of Sri Lanka in the State of QatarP.O.Box: 19075Doha, State of Qatar.Email : icasl_doha@yahoo.com

Honrary Auditor

Mr. Sakthivel Sivakumar, ACA

Past Patrons

Mr. A.S.P Liyanage- March 2017 to March 2019(HE Ambassador of Sri Lanka to the State of Qatar)

Ms. K.H.C Sankapali- Jan 2017 to March 2017(Charge D’Affairs - Embassy of Sri Lanka to the State of Qatar)

Prof. (Dr.) W.M. Karunadasa – July 2015 to December 2016 (HE Ambassador of Sri Lanka to the State of Qatar)

Mr. Manjusri Jayantha Palipana – July 2011 to July 2015 (HE Ambassador of Sri Lanka to the State of Qatar)

Mr. A. Tharmakulasingham – Acting Patron of the Chapter -Jan 2011 to Jun 2011 (Charge D’Affairs - Embassy of Sri Lanka to the State of Qatar)

Mr. Vijayasiri Padukkage – Nov 2008 to Dec 2011 (HE Ambassador of Sri Lanka to the State of Qatar)

Past Presidents

Mr. Mohamed Lafir ACA 2016-2017Mr. Subashchandran Sundaralingam FCA 2015-2016 Mr. Sudarshana Wijesundara ACA 2014-2015 Mr. Saman Fernando FCA 2013-2014 Mr. Rukshan Karunaratne FCA 2012-2013 Mr. Rizwan Yaseen ACA 2011-2012 Mr. Felix Dayananda Ponweera FCA 2010-2011 Mr. M. Thayabaran FCA 2008-2010

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MEMBERS’ DATABASEMember Membership No Member Membership No

Felix Ponweera 1200 Dhammika Pushpa Kumara 4785

Ariyaratne Gamage 1830 Rasika Amarasinghe 4846

Jayakody J.A.J 1896 Nifraz Mohammed 4862

Saman Fernando 2104 Danushka Wickramage 4917

Ismail Abdul Rahim 2264 Gihan Ranathunga 4932

Ilham Cader 2351 Niluka Chanaka 4960

Merita Jayani 2592 Prabath Ekanayake 5000

Sujeewa Ranasinghe 2596 Viraj Premarathne 5013

Shahard Nazir 2623 Mohamed Mujeeb 5026

Anas Ghouse 2767 Saranga Wickramaarachchi 5031

Shaman Punchihewa 2790 Sameera Hapugoda 5088

Asela Indika 2972 Nuwan Jayarathna 5092

Sivakumar Sakthivel 3013 Dasan Mudunkotuwa 5093

Rizwan Yaseen 3078 Venkatesh Sandrasegaran 5156

Rukshan Karunaratne 3269 Chameera De Silva 5172

Kamal Perera 3291 Praveen Herath 5236

Kumarawansha R.P. 3380 Ruwan Kumara 5260

Chandrakumara M.S 3494 Vijayadharshan 5270

Ramiah Senthilnathan 3507 Abdul Wadood 5366

Mohamed Jawath 3547 Dilshad Fernando 5420

Nadika Kumara 3563 Saman Dissanayake 5431

Praneeth Buddhika 3567 Pragalathan Manoharan 5440

Mohamed Lafir 3636 Nadun Jayathunga 5442

Sudarshana Wijesundara 3691 Chamaru Liyanage 5461

Suranga Niroshan 3787 Nalaka Kumara 5609

Vijitha Warnasiri 3801 Dayabaran Nadarajah 5611

Shameer Mohamed 3990 Chamara V.G.G 5657

Yohan Rajakaruna 4065 Horangallage Dinesh Perera 5760

Mohamed Aroos 4076 Upendra Jayamaha 5761

Kishodaran Letchumanan 4132 Ashan Weerasuriya 5797

Mohamed Siraj 4150 Sujanthan Felix 5838

Sanjeewa Jayanetti 4158 Rasika Bandara 6008

Sajith Perera 4159 Lakshan Wickremasinghe 6055

Dilan Hiroshan Samith 4225 Shyamal Herath 6105

Gayan Perera 4275 Roshan Madushanka 6131

Jeewanthi Herath 4354 Tharindu Dilusha 6157

Aravinda Rathnayake 4382 Kethaka Kusuminda 6383

Janaka Samaragunarathna 4506 Suneth Prasanna 6452

Sachitha Gayan 4532 Mohamed Naim 6631

Thuwan Imran 4538 Manjula Bandara 6741

Samuel Pradeep 4614 Thavamayuran 6751

Mohamed Hafeel 4702 Faiz Muhammed Fadhil 6791

Waseem Thawfeek 4706 Prasanna Dissanayake 6905

Basith Farook 4731 Chamara Prasanga

Notes

Readymix Qatar LLC, PO Box 5007, Doha Qatar Office Tel (+974) 44653070, Fax (+974) 44651534

www.readymixqatar.com.qa www.lafargeholcim.com

Readymix Qatar LLC, PO Box 5007, Doha Qatar Office Tel (+974) 44653070, Fax (+974) 44651534

www.readymixqatar.com.qawww.lafargeholcim.com

TheCharteredAccountantsof Sri Lanka - Qatar Chapter

Annual Report

2017 - 2018

Affiliated to the Sri Lankan Embassy in the State of QatarThe Chartered Accountants of Sri Lanka - Qatar Chapter

(Affiliated to the Sri Lankan Embassy in the State of Qatar)