samson international plc annual report 2013/14
TRANSCRIPT
iSamSon international PlC annual report 2013/14
Evolution of the Company
Samson International Plc is a subsidiary of the DSI Samson Group (Pvt) Ltd. The parent Company was
founded in 1962. DSI Samson Group has an export turnover of more than 1% of the country’s total export
turnover and has a workforce of 8,500 employees. The majority of their factories are located in remote rural
areas. Samson International PLC is one of them.
Samson International Plc started its business on 14th October 1988 at a time the open economic policies
had got firmly established in the country with a great tendency among the business community to commence
export-oriented projects. Accordingly, this Company was intended to produce rubber-based products largely
for export markets.
Samson International Plc now manufactures and exports molded and extruded rubber products such as hot
water bottles, jar sealing rings, rubber mats, rubber floorings, beadings and mud flaps mainly to international
markets. Samson International Plc has 324 employees and the main factory is situated at Bogahagoda, Galle.
Milestones
• 1988–SamsonInternationalLtd.wasincorporatedasaPrivateCompanyon
14th October, 1988
• 1992-Ordinarysharesof theCompanywere listed in theColomboStock
Exchange and became a public quoted company as Samson International Plc
on 24th July, 1992
• 1994-Wasawardedthefirst“ISO9001:2008qualitymanagement
certificate” among the rubber-related product manufacturing companies in
Sri Lanka
• 2007-InvestedinthefirstmicrowavecontinuouslinemachineinSriLanka.
(This is the only microwave machine in South Asia)
• 2009-PurchasedallassetsofAkselRubberMatCompany,Kalutara
• 2012-WasawardedtheGoldExportAwardfromtheNationalChamberof
Exporters of Sri Lanka
• 2013–WasawardedtheGoldExportAwardfromtheNationalChamberof
Exporters of Sri Lanka for the second consecutive year when the Company
celebrated its Silver Jubilee
• 2014-PurchasedassetsofOktaPVCLanka(Private)Ltd.,Baddegama,and
steppedintomanufacturingPVCproducts
cOntents
Page
1) Financial highlights 01
2) OurCorporateVision,Mission,ValuesandourAim 02
3) Chairman’s review In English 03 - 06
4) Chairman‘sreviewinSinhala 07-09
5) ManagingDirector’soperationalreview 10-13
6) Corporate information 14 - 15
7) TheBoardofDirectors 16-17
8) Profi les of Directors 18 - 19
9) Executive management 20 - 23
10) Managementdiscussion&analysis 24-52
11) Corporate governance 53 - 58
12) Riskmanagement 59-64
13) ReportoftheBoardofDirectors 65-70
14) StatementofDirectors’responsibilities 71
15) AuditCommitteeReport 72-73
16) RemunerationCommitteeReport 74
17) FinancialReview 75-76
18) Auditor’sReport 77
19) FinancialStatement 78-107
20) SustainabilityReport 108-121
21) GlobalReportingInitiative 122-126
22) InvestorInformation 127-130
23) Four-Quarter Financial Summary 131
24) Ten- year Economic Summary 132
25) Ten-year Financial Summary 133
26) Foreign Currency Financial Statement 134
27) GlossaryofFinancialTerms 135
28) NoticeoftheAGM 136
29) DirectiontothevenueoftheAGM 137
30) Notes 138
31) Form of Proxy Enclosed
SamSon international PlC annual report 2013/14
Profit Before Tax (Rs.‘000) Finance Cost (Rs.‘000)
NetAssetsPerShare(Rs.) FixedAssetTurnoverRatio(Times)
(7,608)
(55,980)
19,123
51,077
64,841
(80,000)
(60,000)
(40,000)
(20,000)
-
20,000
40,000
60,000
80,000
2009/10 2010/11 2011/12 2012/13 2013/14
17,161
21,922
10,106 9,900
3,780
-
5,000
10,000
15,000
20,000
25,000
2009/10 2010/11 2011/12 2012/13 2013/14
102.87
88.27 91.75 104.00
117.00
-
20
40
60
80
100
120
140
2009/10 2010/11 2011/12 2012/13 2013/14
3.44 7.71
4.95
5.31 5.45
-
1
2
3
4
5
6
2009/10 2010/11 2011/12 2012/13 2013/14
Profit before tax increased by 27% or Rs. 13.7mn
Finance cost decreased by 62% or Rs. 6.0mn
Financial investments increased by Rs. 50mn
Profit before tax increased by 27% or Rs. 13.7mn
Finance cost decreased by 62% or Rs. 6.0mn
Financial investments increased by Rs. 50mn
1SamSon international PlC annual report 2013/14
2013/14 2012/13 Variance %
Operating Results
Revenue Rs.000 952,561 973,858 (21,297) (2)
Profitbeforetax Rs.000 64,841 51,077 13,764 27
Taxonprofit Rs.000 8,491 (4,438) 12,929 291
Profitaftertax Rs.000 56,350 55,515 835 1.5
Exportsearnings inUS$000 4,753 5,235 (482) (9)
Valueadditions Rs.000 227,496 199,631 27,865 14
Interest cover times 18.15 6.15
ROCE % 12.5 13.8 (1.3)
Gross profit to Sales % 15.2 15.3 (0.1)
Valueadditionsperemployee Rs/month 58,512 55,085 3,427 6.2
Manpower Nos. 324 302 22 7.3
Financial Position
Dividendcover times 7.3 7.2
Currentratio times 2.37 2.39
Gearing % 6.8 13.2 (6.4)
Financecost Rs.000 3,780 9,900 (6,120) (62)
FinancialInvestments Rs.000 50,354 - 50,354
Totalassets Rs.000 654,125 593,108 61,017 10.2
Cashgeneratedfromoperations Rs.000 136,204 17,785 118,419 666
Shareholder information
Dividendpershare Rs. 2.00 2.00 - -
Marketpricepershare-Closing Rs. 88.20 82.20 6.00 7
Earningspershare Rs. 14.64 14.43 0.21 1.5
Netassetspershare Rs. 116.82 104.18 12.64 12
Numberofsharesissued Nos. 3,847,974 3,847,974 - -
NumberofShareholders Nos. 1,125 1,127 (2) (0.2)
Marketcapitalization Rs.000 339,391 316,303 23,088 7
Shareholders’Funds Rs.000 449,558 400,904 48,654 12
Price earnings ratio times 6.02 5.69 0.33 5.8
Financial
HighlightsFinancial
Highlights
2SamSon international PlC annual report 2013/14
Our Vision
To be a leading Polymer Product manufacturer in the region.
Our Mission
To become a versatile manufacturer of diversified polymer products in the
globalmarketbyutilizingmoderntechnologywhileprovidingoptimum
value to Stakeholders.
Our Values
Contributing to the Socio-economic development,
Respecting national and religious heritage,
Protecting and safeguarding our environment,
Enhancing disciplined human resources based on the family concept.
Our Aim
Aiming at versatility in all polymer products…
During the last 25 years, we have maintained a benchmark for having arguably the widest
product range among the rubber products manufacturing companies in Sri Lanka.
WearemovingonbeyondourSilverJubilee,determinedtoexpandourpolymerproducts
range and invest in modern technology aimed at versatility.
Wealsocontinuetobecommittedtocontributetothenationaleconomy,servingtherural
areas in the Southern Province by using local raw materials, opening direct employment
avenues for neighbouring villages, generating foreign exchange and nurturing our
indigenousheritageasasociallyresponsiblecorporatecitizenwhileaimingatversatilityand
movingforwardinthedirectionofourVision.
Our cOrpOrateVision, Mission, Values and aim
3SamSon international PlC annual report 2013/14
cHairMan’s
review
“It is observed that currently, more than half of
Sri Lankan exports are still centered on the US
and EU markets. We would be severely affected
if the economies in both the US and EU decline.
To minimize the risk, the right mixture of exports
has to be identifi ed. In view of this, we all have to
develop the Chinese, Japanese and South Asian
markets… “
ItismypleasuretopresenttheAnnualReportofSamsonInternationalPlcfortheyearended31stMarch2014.As
you are aware, Samson International Plc was incorporated on
14th October 1988 and we celebrated our silver jubilee this
fi nancial year.
Global Economic outlookIn 2013, the global economic growth was estimated at 3
percent which is a marginal drop from 3.2 percent recorded
in2012.AsprojectedintheIMFforecast,globalgrowthwill
strengthen from 3 percent in 2013 to 3.6 percent in 2014 and
3.9 percent in 2015.
6
5.2
3.9
3.23
3.63.9
5
4
2
3
1
0
2010 2011 2012 2013 2014 2015
5.2
2010
3.9
2011
3.2
2012
3
2013
3.6
2014
3.9
2015
World Economic Output Growth (%)%
Source : IMF World Economic Outlook Report of April 2014
4SamSon international PlC annual report 2013/14
Whenwelookattheforeigncurrencytrends,forsome
currencies the foreign exchange market was highly volatile. The
Japanese Yen recorded 18.1 percent depreciation against the
dollar where currencies such as the Euro, Sterling Pound and
theSouthAfricanRandsignificantlyappreciatedagainstthe
dollar. Infl ation remained stable in many economies in 2013
while a few developed economies faced defl ationary pressures.
Sri Lankan Economic OutlookTheSriLankaneconomyrecordeda7.3percentgrowthin
2013 while infl ation remained at single digit levels for the fi fth
consecutiveyear,steadilydecliningtomid–singledigitlevels
by the end of 2013. Though remaining at a low level of 4.4
percent in 2013, the unemployment level recorded a slight
increase of 0.4 percent compared to the previous year due to
new job seekers entering the labour market. Infl ation trended
downward in 2013, averaging 6.9% in the year. Economic
growth was broad based with contributions from all sectors,
supported by favorable weather conditions.
The Sri Lankan economy was projected to accelerate further
in the medium term to an annual growth rate of 8 percent.
This economic growth target is expected to be supported by
infrastructure expansion in transport, telecommunication, ports
and growth of tourism. The services sector made the largest
contributiontogrowthin2013.Rapidgrowthinwholesale
and retail trade, hotels and restaurants, transport, banking,
insurance and real estate enhanced performance in the large
service sector to 6.4% from 4.6% a year earlier. Industry grew
by 9.9%, slightly less than a year earlier, as slower growth
in mining and quarrying and in construction offset a pickup
in manufacturing and utilities. Favourable weather helped
maintainagriculturegrowthatarelativelyfavourable4.7%.
Whenwelookfurther,foodinflationwasatabout12%during
the fi rst quarter as the drought late in 2012 had disrupted
domestic food supplies, but then dropped markedly to 0.9%
inFebruary2014.Non-foodinflationwasalsoloweroverthe
yearbutincreasedto7.1%inJanuary2014.
cHairMan’s statement (contd...)
-6
-4
-2
0
2
4
6
8
10
12
14
16
2005 2005 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015
Emergind and Devoloping Emergind and Devoloping Emergind and Devoloping Emergind and Devoloping Asia Asia Asia
India India India India
China China China China
Economic Growth (%) Economic Growth (%) Economic Growth (%) Source : World Economic Source : World Economic Outlook Apr 2014 Outlook Apr 2014
-6
-4
-2
0
2
4
6
2005 2005 2005 2005 2006 2007 2008 2008 2008 2008 2008 2008 2008 2009 2010 2020111111 2012 2013 2014 2015 2015
United States United States United States United States
Japan Japan
Advanced Economies Advanced Economies Advanced Economies Advanced Economies
Economic Growth (%) Source : World Economic Source : World Economic Outlook Apr 2014
AccordingtoIMFWorldEconomicOutlookReportofApril
2014, the USA, Euro area ( Germany, France, Italy and Spain),
Japan,UKandCanadahaveadvancedeconomies.The
economic activities in these countries struggled in the fi rst half
but grew fi rmly in the second half of the year and recorded
1.4 percent growth in 2013 compared to 1.3 percent in 2012.
In these countries, growth is expected to increase to about
2.2percentin2014.Keydriversofsuchgrowthwillbea
reduction in fi scal tightening (except in Japan) while pursuing
accommodative monetary measures . Growth will be strongest
in the United States at about 2.8 percent while in the Euro area
growth is projected to be positive but varied area depending on
the extent of debt and fi nancial fragmentation.
-6
-4
-2
0
2
4
6
2005 2005 2005 2006 2007 2008 2008 2008 2008 2009 2010 2011 2012 2012 2012 2013 2013 2013 2014 2015 2015
Euro Euro Area
France France
Germony Germony Germony Germony
Economic Growth (%) Source : World Economic Outlook Apr 2014 Outlook Apr 2014
Economic activity in many emerging market economies ( i.e.,
China,India,Indonesia,Malaysia,Philippines,Thailandand
Vietnam)hasbeendisappointinginalessfavorableexternal
fi nancial environment, although they continue to contribute
more than two-thirds of global growth. Some emerging
economies slowed in growth due to weaker domestic demand
than anticipated and the growth recorded by emerging
economieswas4.7percent,whichisa0.2percentdrop
fromthepreviousyear.AccordingtoIMF,inChinagrowthis
projectedtoremainatabout7.5percentin2014.
%
%
%
Source : IMF World Economic Outlook Report of April 2014
Source : IMF World Economic Outlook Report of April 2014
Source : IMF World Economic Outlook Report of April 2014
5SamSon international PlC annual report 2013/14
The 2013 fi scal defi cit is estimated at 5.8% of GDP in keeping
with the target. The target was achieved notwithstanding
unexpectedly weak revenues by reducing current expenditure.
Capital expenditure was largely sustained but was again
slightly below the target of 6% of GDP. The ratio of
governmentdebttoGDPfellto78.4%inSeptember2013
from79.1%in2012.
There was a turnaround in external demand during the
secondhalfofthefinancialyear2013/14withthegradual
improvement in the advanced economies including the United
States and the European Union, which are Sri Lanka’s major
export destinations. Currently, more than half of Sri Lankan
exportsarestillcentredontheUSandEUmarkets.Wewould
be severely affected if the economies of both the US and the
EUdecline.Tominimizetherisk,therightmixtureofexports
has to be identifi ed. In view of this, we have all to develop the
Chinese, Japanese and South Asian markets.
Withtheflexibleexchangeratepoliciesofthegovernment
the rupee remained less volatile against the dollar and the
currencies of some of the major emerging economies. By the
endof2013,therupeehadexchangedatarateof130.75
againsttheUSdollarrecordingadepreciationof2.75percent
compared to the previous year.
In 2013, many key infrastructure projects were completed,
namely, the country’s second international airport, harbour
and port development projects, the Expressway and highway
developmentprojects,theNorthernrailwayprojectandpower
projects, with some more due to be completed in the future.
cHairMan’s statement (contd...)
12.0
10.0
8.0
6.0
4.0
2.0
0.0200920092009
AgricultureAgriculture IndustryIndustry
%
ServicesServices GDPGDP
20102010 20112011 201220122012 201320132013
Industry PerformanceThe rubber industry of the country faced two major challenges
during the year. Firstly, the signifi cant decline in production was
due to a drop in tapping days during the adverse weather in the
firstninemonths.Rubberproductiondeclinedby14.2percent
compared to 2012. Secondly, declining world market prices of
natural rubber due to high stocks levels maintained in China
and Japan, which affected rubber prices in Sri Lanka too.
Despite these challenges the output of rubber products
increased at a moderate rate of 4.6 percent with the increase
in international demand for rubber-based products in the
latter part of 2013. Earnings from exports of rubber products
recorded a 3.3 percent growth in 2013, which was the second
largest contributor to the growth in industrial exports of the
country.
Future prospects for the industry will be more favourable with
the government’s master plan in respect of the rubber industry
looking to generate USD 5 bn worth of rubber exports by
2022. In achieving this goal we could expect the authorities
to extend their support towards improving testing laboratory
facilities, developing infrastructure and regulating the industry.
Company’s PerformanceDuringtheyearended31stMarch2014,theCompany
recordedaturnoverofRs.953mnasagainstRs.974mnin
the previous year. The reduced turnover was caused by the
signifi cant depreciation of the currency of India, South Africa
and Japan, our customers. However, the profi t before taxation
inthecurrentyearisRs.64.8mnascomparedtoRs51.0mn
inthepreviousyear,whichisanincreaseby27%.
Wecontinuetomanufacturetotheinternationalstandards
required of many ISO certifi ed products. In the future, we
will focus on widening our global presence with a wide
productrange.Wewillcontinuetofocusonhighcontributing
products.Wastageandscraplevelswillbefurtherminimized
withpropercontrols.Weneedtofurtherimproveourquality
levels and delivery times from their current position in order to
differentiate our products from Chinese products.
Source :Central Bank Annual Report 2013
6SamSon international PlC annual report 2013/14
1200
1000
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Turn Over (Rs. Mn)Turn Over (Rs. Mn)Turn Over (Rs. Mn)
800
600
400
200
0
Tu
I am happy to inform you that Samson International Plc
purchasedtheassetsofOktaPVCLanka(Pvt)Ltd.on14th
July2014bymovingforwardinthedirectionofourVision.We
willbeabletowidenourproductrangefurtherwiththePVC-
related products.
Movingforwardinthe
directionofourVision
DividendsThe Board of Directors decided to recommend a dividend of
Rs.2.00persharefortheyearunderreview(Rs.2.00pershare
in2012/13).
AppreciationAs we complete our Silver Jubilee this year, I would like to
especially thank our invaluable and loyal customers. Further, I
would like to thank the Board of Directors, the management
and every employee of the company for their dedication and
commitment extended to the company.
I would also like to thank our bankers and all our suppliers for
theirsupport.Wedeeplyappreciateourshareholdersfortheir
faith in our Company and we assure them of a bright future.
Dr D. S. RajapaksaChairman
Colombo
1st August 2014
Turnover Last Ten Financial Years (Rs.Mn)
cHairMan’s statement (contd...)
10SamSon international PlC annual report 2013/14
ManaGinGDirector’s Operational review
“During the year we improved many aspects of
our operational effectiveness through investing
in advanced technology, improving the working
capital, minimizing waste, maintaining higher levels
of capacity utilization in most of the products and
controlling all overheads… “
We, Samson International Plc, cater to sophisticated
international markets as well as the local market.
However, we continued to maintain satisfactory profi t levels
in the recent past notwithstanding macroeconomic pressures,
which were challenges to face in the face of slightly lower
global economic growth (3.0 % in 2013 compared to 3.2%
in 2012), adverse movements in exchange rates of some
currencies that we dealt with ( India, South Africa and
Japan) and continuous increases in energy prices.
However, in a more positive light, an increase in exports
as well as local demand could be expected as advanced
economies are picking up, domestic demand in emerging
economies is increasing, and the rupee continues to be
stable against some major currencies and continues domestic
demand in infrastructure developments.
WiththeKatunayaka-Colombohighwaynowopen,our
customerscanreachuswithintwohoursfromtheKatunayaka
International Airport. Although our factory is located 100
km from Colombo in the South of Sri Lanka , the Southern
Expressway has brought us closer to Colombo. Anyone can
reach us now in a one-hour journey from Colombo and 15
Profi t Before Tax (Rs.Mn)
80
60
40
20
0
-20 2004/052004/05
PBT (Rs.Mn)
2006/072005/06 2007/08 2008/09 2009/102009/102009/102009/10 2010/11 2011/122011/12 2012/13 2013/142013/14
-40
-60
-80
PBP
11SamSon international PlC annual report 2013/14
minutesfromMatara.Thegovernment’smassiveinfrastructure
projects certainly help our business.
Weareplanningtobecome
bigger and bigger
year by year
During the year we improved many aspects of operational
effectiveness by investing in advanced technology, improving
ourworkingcapital,minimizingwaste,maintaininghigher
levelsofcapacityutilizationandcontrollingalloverheads.
In the fi nancial year under review, we invested in a fully
automatedflashlesspressforVstrap,amill,anotherpress
line for hot water bottles and an additional cutter for jar
sealingrings.Wecontinuetoinvestmoreandmorein
Research&Development.OurGroupsignedanagreement
withthePolymerUnitoftheUniversityofMoratuwafor
researchactivitiesfor3yearsbyinvestingRs.15mnfrom
which the major contribution will come to Samson Intentional
Plc.Wearelookingforwardtothefuturewithmuchpositive
hope.Wewillcontinuouslyengageinproductdevelopment,
processautomationandcreatingsynergies.Weareplanning
to become bigger and bigger year by year.
Ourworkingcapitalcycleisasfollows:
2013/2014 2012/2013 Variance
DebtCollectionPeriod(Days) 65 79 (14)
RMHoldingPeriod(Days) 23 18 5
WIPHoldingPeriod(Days) 14 11 3
FG Holding Period (Days) 19 58 (39)
Credit Settlement Period (Days) (54) (38) (16)
CashOperatingCycle(Days) 67 128 (61)
OperatingCycle(Days) 56 87 (31)
Our measures to improve quality in compliance with
international standards and continuous in-house and
overseas laboratory tests will ensure a solid market share
forourproducts.Wehaveachievedsignificantinternational
recognitionintermsofproductquality.Wearethefirst
rubber- related product manufacturing company to receive
theISO9001:2008QualityManagementCertificate.Since
ManaGinG Director’s Operational review (contd...)
1994, we have enjoyed ISO status. Further, we have been
awardedBritishStandard(BS1970:2006),TUVCertification
andFSCCertificationforhotwaterbottles.Wealsohavethe
FireRetardantCertificateforrubbersmatsandflooringsand
theElectricalResistantCertificateforrubbermats.Allraw
materials are used to manufacture our products by conforming
totheReachregulationsofEurope.
Wearethefirst
rubber- related product
manufacturing company to
receivetheISO9001:2008
QualityManagement
Certifi cate
Above all, our main focus is contributing to the rural
communities by offering them many more employment
opportunitiesandupliftingtheirlivingstandards.Weasa
company are committed to protecting our cultural heritage
and customs. Our years of experience prove that customs and
rituals tie generations with bonds that cannot be broken.
WearepleasedtoinformyouthatyourCompanyreceiveda
coupleofawardsduringtheyear:firstlyNationalChamber
of Commerce Gold Awards for the last two consecutive years
in recognition of our export growth and volume; secondly a
CertificateofRecognitionawardedbytheInstituteofChartered
Accountantswasreceivedforlastyear’sAnnualReportinthe
manufacturing category.
As you are aware, Samson International Plc produces more
than 40 types of rubber products under four different
product segments.
a) Medical Items: These include hot water bottles, fi nger
exercises and power web.
b) Food Grade Items: These include jar sealing rings.
c) Household & Industry Items: This segment includes
rubber mats ,rubber fl ooring and rubber hoses,
continuous rubber rolls, bath mats, staircase mats, vehicle
12SamSon international PlC annual report 2013/14
ManaGinG Director’s Operational review (contd...)
Business Segment2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Export Sales 208,861 212,328 284,583 285,912 67,717 99,166 52,092 58,635 613,250 656,041 Local Sales 635 1,343 2,081 5,338 40,561 39,389 296,034 271,747 339,311 317,817
209,496 213,671 286,664 291,250 108,275 138,555 348,126 330,382 952,561 973,858 Profit/(Loss) on Fixed Asset Disposal 82 291 81 291 88 292 81 292 332 1,166 Other Income 472 328 472 214 472 24 535 16 1,951 582
210,050 214,290 287,217 291,755 108,835 138,871 348,742 330,690 954,844 975,606
Segmental Expense (200,558) (201,821) (256,869) (261,225) (105,064) (136,291) (344,589) (322,209) (907,080) (921,546)
Operating Profit/(Loss) 9,492 12,469 30,348 30,530 3,771 2,580 4,153 8,481 47,764 54,060
Medical Items Food Grade Items Household Items Others Company
mats, entrance mats, industry mats and also specialty mats
such as fi re retardant mats, oil resistant mats, antistatic
mats and fabric mats.
4) Other products: These include beadings, footwear
components, road humps, mud fl aps, D- fenders and
other items which do not belong to the above three
categories.
Turnover Mix in (Rs. Mn.)
348.12330.38
213.67
138.55291.25
209.49
2013/14 2012/13
286.66108.27
Medical Items
Food Grade Item
House Hold ItemHouse Hold ItemHouse Hold Item
other
Me
FooFoo
Ho
othoth
30
9
5 4
31
12
10
3 -
5
10
15
20
25
30
35
Food Grade Items Food Grade Items Food Grade Items Medical Items Others Others Household Items Household Items
2013/14 2013/14 2013/14 2013/14 2013/14 2013/14 2013
2012/13 2012/13 2012/13
Operating Profi t (Rs. Mn.)
The segmental profi t analysis is given below.
13SamSon international PlC annual report 2013/14
ManaGinG Director’s Operational review (contd...)
Wehadasalesgrowthof7%fromlocalsales.However,
export sales decreased by 6.5 %. During the year overheads
were controlled effectively. Finance costs decreased by 62%
fromRs.9.9mninthepreviousyeartoRs.3.7mninthe
currentfinancialyear.WeinvestedRs50.3mninTreasuryBills,
Tax free Debentures and Fixed Deposits this year. Administration
overheads and selling and distribution overheads too are under
control.ExchangegainincomeincreasedfromRs6.1mnin
thepreviousyeartoRs17.7mninthecurrentyear,whichwas
mainly due to the favourable exchange rate of the Euro that
prevailed during the year. However, we also lost some revenue
due to unfavorable exchange rates that prevailed in Japan,
India and South Africa in the same period. The net profi t
beforetaxincreasedby27%toRs.64.8mninthecurrent
financialyearcomparedtoRs.51.0mninthepreviousyear.
WeinvestedRs50mn
in Treasury Bills, Tax free
Debentures and Fixed
Deposits this year
It is important that we maintain excellent rapport with our
neighbors, villagers and employees. At present our rapport
with our neighbors and villagers seem to be constructive and
improving. Our relationship with our employees too seems
sound and pleasant at present.
Currently we produce more than 40 products out of rubber
using moulding , extruding, microwaving and injection
moulding. Your company has now reached versatility in
manufacturing rubber products. In the future we will focus
on reaching versatility in other polymer products such as
PVCtoo.IamhappytoinformyouthatSamsonInternational
PlcpurchasedtheassetsoftheOktaPVCLanka(Pvt)Ltd.
on 14th July 2014 by moving forward in the direction of
ourVision.Wewillbeabletowidenourproductrangeand
turnoverfurtherwhenweaddtoitPVC-relatedproducts.
I would like to thank all the members of management and
every employee of the company for their dedication and
commitment extended to the company during the year.
D. K. RajapaksaManaging Director
Colombo
1st August 2014
15SamSon international PlC annual report 2013/14
cOrpOrate informationName of the Company : SamsonInternationalPlc
Legal Form : Apublicquotedcompanywithlimitedliability,incorporatedon14thOctober 1988 and re-
registeredundertheCompaniesActNo.7of2007on3rdSeptember2008.
Company Registration number : PQ192
Stock Exchange listing : TheordinarysharesoftheCompanywerelistedintheColombo Stock Exchange of Sri Lanka
on 24th July 1992 and the Company was converted to a public quoted company.
Principal line of business : Manufactureandexportofrubber-basedproductsfortheinternationalandlocalmarkets.
Registered Offi ce : No.110,KumaranRatnamRoad,Colombo02.
Te:(011)4728800,Fax(011)2440890
Email:[email protected]
Galle Factory : AkuressaRoad,Bogahagoda,Galle.
Te(091)3094469-72,Fax(091)2224036
Email:[email protected]
Kalutara Factory : No.57/B,FullertonIndustrialZone,Nagoda,Kalutara.
Te (034) 5622688
Email:[email protected]
Baddegama Factory : GilcroftEstate,Kiribathwila,Ampegama,Baddegama
(Purchased on 14th July 2014)
Te (091) 2293801, Fax (091) 2233020
Email:[email protected]
Directors : DrD.S.Rajapaksa(Chairman)
MrD.K.Rajapaksa(ManagingDirector)
MrD.R.Rajapaksa
MrD.M.Rajapaksa
MrC.Cumaranatunge
MrR.H.Nandajeewa(Resignedon8/8/2013)
MrG.H.A.Wimalasena
MrT.K.Bandaranayake
MrB.L.P.Jayawardena
MrD.G.P.S.Abeygunawardana(Director/GeneralManager)Appointed-on8/8/2013asDirector
Secretaries : PWCorporateSecretarial(Pvt)Ltd.
No.3/17,KynseyRoad,Colombo08
Parent Company : DSISamsonGroup(Pvt)Ltd.
Auditors : MessrsHLBEdirisinghe&Company
Chartered Accountants,
No.45,BraybrookStreet,Colombo02.
Bankers : BankofCeylon
HattonNationalBank
Commercial Bank
NationTrustBank
DFCCVardhanaBank
People’s Bank
16SamSon international PlC annual report 2013/14
1. Dr. D. Samson Rajapaksa
2. Mr. D. Kulatunga Rajapaksa
3. Mr. D. Ranatunga Rajapaksa
4. Mr. D. Mahinda Rajapaksa
13
5
7 8624
tHe BOarD of Directors
17SamSon international PlC annual report 2013/14
5. Mr. G. H. Ananda Wimalasena
6. Mr. Tissa K. Bandaranayake
7. Mr. B. Lalith P. Jayewardene
8. Mr. D. G. Priyantha S. Abeygunawardana
Note : Mr. C. Cumaranatunga was absent as he is based in Germany
18SamSon international PlC annual report 2013/14
1. Dr. D. Samson Rajapaksa M.B.B.S (Cey), F.R.C.O.G. (U.K.), M.S. (S.L.)
Chairman
DrSamsonRajapaksaisamedicalpractitionerbyprofession
and counts over three decades of experience with DSI Group.
He serves as the Chairman of DSI Holdings (Pvt) Ltd. and is the
Chairman of DSI Samson Group (Pvt) Ltd. He is also a Director
of D. Samson Industries (Pvt) Ltd., D. Samson and Sons (Pvt)
Ltd.,andSamsonReclaimRubbers(Pvt)Ltd.
In addition to being on the DSI Samson Group (Pvt) Ltd.
Board, he is a Consultant Obstetrician and Gynecologist in the
private sector.
Dr.SamsonRajapaksaservesasaCommitteeMemberofthe
YoungMembersBuddhistAssociationandoftheSriLanka
MedicalLibrary.
2. Mr. D. Kulatunga Rajapaksa B.Sc (Hons) (Cey)
Managing Director
MrKulatungaRajapaksaistheManagingDirectorofDSI
Samson Groups (Pvt) Ltd. He has over 48 years of experience
in the manufacture of footwear and rubber products.
HehasservedasaCouncilMemberofseveraluniversities.
MrKulatungaRajapaksaisapastpresidentoftheNational
Chamber of Exporters of Sri Lanka and also was the past
presidentoftheSriLankaAssociationofManufacturersand
ExporterofRubberproductsandisthecurrentpresidentof
theSriLankaFootwear&LeatherProductsManufacturers
Association.
HeisalsotheChairmanoftheWellassaRubberCompany
LimitedandalsoaDirectoroftheMawbimaLanka
Foundation.
3. Mr. D. Ranatunga Rajapaksa Dip. In Technology
Non- Executive Director
MrRanatungaRajapaksaistheManagingDirectorof
SamsonRubberIndustries(Pvt)Ltd.,acompanythat
specializesinthedesigning,manufacturingandexporting
oftyresandtubes.HeisalsotheManagingDirectorof
MountspringWater(Pvt)Ltd.,SamsonReclaimRubbersLtd.
SamsonRubberProducts(Pvt)Ltd.,SamsonBikes(Pvt)Ltd.,
DSI Tyre India (Pvt) Ltd. and several other subsidiary companies
of the DSI Samson Group.
Mr.RanatungaRajapaksaplaysamajorroleinexpanding
the Group’s overseas business and has more than 43 years of
experience with DSI Group.
4. Mr. D. Mahinda Rajapaksa B.Sc Eng. (Hons), MBIM, CEng, MIMechE (UK), FIE (SL)
Non -Executive Director
Mr.MahindaRajapaksaisaCharteredEngineerbyprofession
and has more than five years’ experience working as an
EngineerinUKandSriLanka.
In addition to being a Director of Samson International Plc,
Mr.MahindaRajapaksaistheManagingDirectorofSamson
(Exports) Ltd. and is a Director of DSI Samson Group (Pvt) Ltd.,
D. Samson Industries (Pvt) Ltd. and several other subsidiary
companies of the DSI Samson Group.
Mr.MahindaRajapaksahasover35yearsofmanagerial
experience within the DSI Samson Group.
5. Mr. Chula Cumaranatunge M.Sc. (Econ) (Lond.)
Non -Executive Director
MrChulaCumaranatungehasover28years’experiencein
the rubber industry.
MrChulaCumaranatungeisalsoaDirectorofGlovetex(Pvt)
Ltd.andofCentralRubber(Pvt)Ltd.
6. Mr. G. H. Ananda Wimalasena B.Sc, Higher Diploma in Management (London College of
Printing, U.K.)
Independent, Non –Executive Director
MrAnandaWimalasenawastheFounder-ManagingDirector
of Asiri Hospital Group of Companies from 1980 to 2006.
MrAnandaWimalasenahasexperienceandextensive
exposureinManagementandHealthservices.Healsoserves
as a Director of Hemas Hospitals (Pvt) Ltd. He is Chairman in
ITMC(Pvt)Ltd.andalsoChairmanoftheRiskManagement&
Audit Committee of Hemas Hospitals (Pvt) Ltd.
7. Mr. Tissa K. Bandaranayake B.Sc. (Cey), FCA
Independent, Non –Executive Director
MrTissaBandaranayakehasmorethan46yearscommercial
and professional experience and was a Senior Partner of Ernst
&Youngfromwhereheretiredafter27years,havingserviced
a large portfolio of clients, both local and multinational in
various industries.
He currently serves as a Director Laugfs Gas Plc, Overseas
Realty(Ceylon)Plc,RenukaHoldingsPlc,RenukaShaw
WallacePlc,MicroHoldings(Pvt)Ltd.,HarischandraMills
Plc,WatersEdgeLtd.andNawalokaHospitalsPlc.Healso
prOFiles of the Directors
19SamSon international PlC annual report 2013/14
servesasanAdvisor/ConsultanttotheBoardofDirectorsof
NoritakeLankaPorcelain(Pvt)Ltd.
He serves as Chairman of the Quality Assurance Board
established by the Institute of Chartered Accountants of
Sri Lanka comprising senior members of the accounting
profession as well as representatives of public sector
regulatorybodiessuchastheSEC,SLAASMB,CBSL,etc.
MrTissaBandaranayakeisaPastChairmanoftheAudit
Faculty of the Institute of Chartered Accountants of Sri Lanka.
8. Mr. B. Lalith P. Jayawardena MBA, BCom (Sp)
Executive Director
MrLalithJayawardenahasover24years’experiencein
Samson International Plc and has served the company from its
inception. He is also a Director of Samson Group Corporate
Services(Pvt)Ltd.,SamtessiBrushManufacturers(Pvt)Ltd.
andMicroMinerals(Pvt)Ltd.,asubsidiaryoftheRichardPeiris
Group.Inaddition,MrLalithJayawardenaservesastheGroup
Treasurer of the DSI Samson Group.
He is the Secretary of the Sri Lanka Association of
Manufacturers&ExporterofRubberProducts(SLAMERP).Mr
LalithJayawardenaisalsoamemberoftheRubberAdvisory
Council of the Sri Lanka Export Development Board and of
theMinistryofIndustryandCommerce.HeisapastTreasurer
ofthePlasticandRubberInstituteofSriLanka.
9. Mr. D. G. Priyantha S. Abeygunawardana MBA, LLM, LLB, FCA, FCMA, FCCA, MCIM, Attorney-at- Law
Director / General Manager
Mr.PriyanthaAbeygunawardanaisatriple-qualified
AccountantholdingthefellowshipofChartered,CIMA
andACCA.HealsoholdstwoMaster’sdegreesintwo
differentfields,namely,MBAfromtheUniversityofSri
JayewardenepuraspecializinginFinanceandLLMfrom
University of Colombo in Company Law, Labour Law and
Banking Law.
He obtained his LLB degree from the Open University of Sri
Lanka and took his oaths as an Attorney-at- Law in 2004
having passed the requisite examinations held by the Sri Lanka
Law College.
HeisalsomemberofCharteredInstituteofMarketingofUK.
PreviouslyhewasatFord,Rhodes,Thornton&Company,
Hayley’s,AbansandfinallyatRichardPiersExportsPlcwhere
heworkedasGeneralManagerforsixyears.Hejoined
Samson International Plc in February 2012.
prOFiles of the Directors (contd...)
Analysis of Director’s Professional Background:
Professionally qualified area No. of Directors on the Board
1 Medical 1
2 Science 3
3 Engineering 2
4 Finance 3
5 Economics 1
6 Law 1
7 Marketing 1
8 Management 3
20SamSon international PlC annual report 2013/14
executiVe
Management
Mr. Kulatunga Rajapaksa
B.Sc (Hons) (Cey)
Managing Director
Mr. Priyantha Abeygunawardana
MBA, LLM, LLB, FCA, FCMA, FCCA, MCIM, Attorney-at -Law
Director/ General Manager
Research&Development
Mr. Sunil KariyawasamDip. in Rubber Technology (NDT)
Deputy General Manager – Research
& Development
Mr. Wimal Siriwardana Dip. in Rubber Technology,
Certifi cate in Hydraulic Technology
Executive – Research and Development
Mr. P K Sameera TharangaB.Sc Engineering (Hons)
Process Engineer
21SamSon international PlC annual report 2013/14
executiVe Management (contd...)
Marketing
Supplies HumanResources
Mr Naveendra KumaraMBA, MAAT, Dip in Business Mgt.
Manager - Marketing
Mr. M. A. P. JanakanthaDip. in Engineering Science, Dip. in Rubber
Technology
Executive- Production, Galle Factory
Ms. Piumangani SeneviratneBMS (Sp), Dip. in Mgt
Manager - Supplies
Ms. Nishanthi PadmakumariDip. in Human Resources Management
Executive - Human Resources
Mr. Sanjeewa WeerakkodiBA ( Hons) (Economics), Dip in
Marketing ( UK)
Assistant Manager - Marketing
Mr. Asanka Dimuth EdirisingheDip. in Engineering Science
Executive- Production, Kalutara
Factory
Production
22SamSon international PlC annual report 2013/14
executiVe Management (contd...)
Analysis of Educational and Professional qualifi cations of the Executives :
CATEGORY Number of educational Number of professional
qualifi cations qualifi cations
Master’sDegrees 4 -
Bachelor’sDegrees 7 -
Diplomas 11 -
Professionally qualifi ed in Accountancy 3
Professionally qualifi ed in Law 1
ProfessionallyqualifiedinMarketing 2
Total 22 6
Quality Assurance
Finance
Engineering
Welfare
Mr. Namal NishanthaB.Sc, Dip. in Rubber Technology
Executive- Quality Assurance
Mr. Thilina Promod Kahanda Gamage B.Sc Finance Management (Sp)
Executive- Finance
Mr. Nilantha JayalalDip. in Technology
Executive – Engineering
Mr. G. ParanavithanaDip. in Commerce
Executive- Welfare
23SamSon international PlC annual report 2013/14
executiVe Management (contd...)
53SamSon international PlC annual report 2013/14
cOrpOrateGovernance
“Board of Directors gives its top priority to
attain a high standard of corporate governance
practices as specified by regulatory bodies …”
TheBoardrecognizestheinterestsoftheCompany’s
shareholders, employees, customers, suppliers, consumers,
and communities in which it operates and who are all essential
for the Company’s success. The Company’s corporate
governance framework is expected to ensure a transparent
and good governance system leading towards enhancing
profitability and long-term sustainability. The Directors are
committed to maintaining the highest standards of corporate
governance in the interest of stakeholders having regard to
the requirements of the Securities and Exchange Commission
of Sri Lanka, Colombo Stock Exchange and the Institute of
Chartered Accountants of Sri Lanka and to this end, inter
alia, have established internal control systems, including a
comprehensive risk identification, measurement and mitigation
process which is in place designed to carry out the business
of the Company in an orderly manner, to safeguard its assets
and secure as far as possible, the accuracy and reliability of the
records and protect the rights and interests of shareholders
and be accountable to them for the overall management of
the Company. The corporate governance of the Company
is reflected in its strong belief in protecting and enhancing
stakeholder value in a sustainable manner, supported by a
sound system of policies and practices.
54SamSon international PlC annual report 2013/14
Board of Directors
The Board comprising professional and experienced business
leaders of high repute is entrusted with, and is responsible for
providing strategic direction to the company in an honest, fair,
diligent and ethical manner. The Board of Samson International
Plc comprises three executive directors and six non-executive
directors.Theirprofilesappearonpages18&19ofthisAnnual
Report.
RoleoftheBoardofDirectors The Board of the Company is responsible for formulating
company policy and overall business strategy. The
implementation of policy and strategy is done within a
framework that requires compliance with existing laws and
regulations as well as establishing best practices in dealing with
employees, customers, suppliers and the community at large.
It is the Company’s policy to hold regular Board meetings.
Information relevant to these Board meetings was distributed
in a timely manner with ample time given for members to
assimilateandanalyzeinformationinordertomakewell-
informed decisions at Board meetings. In the furtherance of
his duties, provisions have been made to allow a director to
acquire independent professional advice at the expense of the
company. The Board approves all material contracts, projects,
investments, acquisitions and disposal fixed assets and annual
capital&revenuebudgets.
cOrpOrate Governance (contd...)
To protect the untarnished reputation of the company, the
Board ensures that its members and employees maintain the
highest possible ethical standards.
TheBoardhasdelegatedresponsibilitytotheManaging
Director who is also the Chief Executive Officer for planning
and guiding the business towards meeting set objectives. There
is a clear demarcation of responsibilities and authority between
theChairmanandtheChiefExecutiveOfficer/Managing
Director, which ensures a balance of power.
Appointment&Re-electionofDirectors The Board of Directors collectively decides on the new
appointment of directors as per the Articles of Association of
the Company. Formal and transparent procedures are followed
inmakingsuchappointments.TheAnnualGeneralMeeting
is considered to be the ideal forum for this, with sufficient
biographic data on directors seeking appointment or re-election
accompanying their names so that shareholders can make
informed voting decisions.
BoardMeetingsThe Board held five meetings during the period under review
and their attendance is given below.
Name of Director Status 27th May 08thAugust 11thNovember 13thFebruary 26thMay No of
2013 2013 2013 2014 2014 Attendance
DrDSRajapaksa NE √ √ √ √ √ 5/5
MrDKRajapaksa E x √ √ √ √ 4/5
MrDMRajapaksa NE √ √ √ √ √ 5/5
MrDRRajapaksa NE √ √ √ √ √ 5/5
MrRHNandajeewa(Resignedon8/8/2013) E √ √ - - - 2/2
MrCCumaranatunga(BasedinGermany) NE x x x x x 0/5
MrTKBandaranayake NE/I √ √ √ √ √ 5/5
MrGHAWimalasena NE/I x √ √ x √ 3/5
MrBLPJayawardena E √ √ x x x 2/5
Mr.DGPSAbeygunawardana(Appointedon8/8/2013) E - √ √ √ √ 4/4
Directors’attendanceattheBoardMeetingsofSamsonInternationalPLC
Note1:Understatuscolumn,“E”=Executive,“NE”=Non-Executiveand“I”=Independent
Note2:MrCumaranatungeisbasedinGermanyandallproceedingsoftheBoardmeetingshavebeensenttohim.
55SamSon international PlC annual report 2013/14
cOrpOrate Governance (contd...)
CommitteesSpecificresponsibilitieshavebeendelegatedtotheBoardCommittees,namely,AuditCommitteeandRemunerationCommittee.
Audit Committee
TheAuditCommitteeconsistsofthreeNon-ExecutiveDirectors:
MrT.K.Bandaranayake–Chairman Independent,Non-ExecutiveDirector
MrG.H.Wimalasena Independent,Non-ExecutiveDirector
MrD.M.Rajapaksa Non-ExecutiveDirector
PleaserefertheAuditCommitteeReportonpages72and73forthefunctionsandresponsibilitiesoftheCommittee.TheInternal
AuditfunctionoftheCompanyiscarriedoutbyMs.Ernst&Young,CharteredAccountants.TheydirectlyreporttotheChairmanof
the Audit Committee. The Audit Committee Charter gives guidelines on audit-related matters.
Name of Director Status 27th May 08thAugust 11thNovember 13thFebruary 26thMay No of
2013 2013 2013 2014 2014 Attendance
MrTKBandaranayake
(Chairman) NE/I √ √ √ √ √ 5/5
MrGHAWimalasena NE/I x √ √ x √ 3/5
MrDMRajapaksa NE √ √ √ √ √ 5/5
AttendanceofMembersoftheAuditCommittee
RemunerationCommittee
TheRemunerationCommittee,appointedbytheBoardofDirectors,consistsofthreeNon-ExecutiveDirectors:
MrG.H.A.Wimalasena–Chairman IndependentNon-ExecutiveDirector
MrT.K.Bandaranayake IndependentNon-ExecutiveDirector
MrD.M.Rajapaksa Non-ExecutiveDirector
TheyrecommendtheremunerationpackagesofDirectors,ManagersandExecutivesoftheCompany.
Compliance and Disclosure of InformationTheCompany’scompliancewithitsstatutoryobligationsisregularlymonitoredbyManagementandaStatementofCompliance
is presented to the Board on a regular basis. The Board of Directors requires that the Financial Statements of the Company are
prepared in accordance with the Sri Lanka Accounting Standards and in accordance with the requirements of the Colombo Stock
ExchangeandCompaniesAct,7of2007.Maximuminformationisprovidedtoshareholdersandfulldisclosureismadesubjectonly
to consideration of any sensitive information, which could directly impact on the business of the Company.
TheStatementofComplianceunderSection7.10oftherulesofColomboStockExchangeonCorporateGovernanceisshowninthe
Table below. All these mandatory provisions have been fully complied with.
56SamSon international PlC annual report 2013/14
cOrpOrate Governance (contd...)
CSE Rule No. Subject Applicable Requirement Compliance Status
7.10.1(a) Non-ExecutiveDirectors Atleast1/3ofthetotalnumberof Compliant
DirectorsshouldbeNon-ExecutiveDirectors 6 out of the 9 Board
members are
Non-Executives.
7.10.2(a) IndependentDirectors 2or1/3ofNon-ExecutiveDirectors, Compliant
whichever is higher should be independent There are 2 Independent
Directors and 6
Non-ExecutiveDirectors.
7.10.2(b) IndependentDirectors EachNon-ExecutiveDirectorshouldsubmit Compliant
adeclarationofindependence/ Independence of Directors
non-independence has been determined in
accordance with CSE.
7.10.3(a) DisclosurerelatingtoDirectors a. TheBoardshallmakeadetermination Compliant
annually as to the independence or All Independent,
non independence of each Non-ExecutiveDirectors
Non-ExecutiveDirector have submitted declarations
for their independence.
b.NamesofindependentDirectors Compliant
shouldbedisclosedintheAnnualReport This has been disclosed.
7.10.3(b) DisclosurerelatingtoDirectors IntheeventaDirectordoesnotqualifyas NotApplicable
independent, but if the Board is of the opinion
that the Director is nevertheless independent,
shall specify the criteria not met and the basis
forthedeterminationintheAnnualReport
7.10.3(c) DisclosurerelatingtoDirectors AbriefresumeofeachDirectorshouldbe Compliant
includedintheAnnualReportincluding Please refer the Profile of the
the area of expertise Directors in the Annual
Reportonpages18,19.
7.10.3(d) DisclosurerelatingtoDirectors UponappointmentofanewDirector Compliant
to the Board, a brief resume of each A brief resume of the new
Director should be provided to the CSE. Director was provided to the
CSE in August 2013.
7.10.5 RemunerationCommittee AlistedCompanyshallhavea Compliant
RemunerationCommittee
7.10.5(a) CompositionofRemuneration ShallcompriseNon-ExecutiveDirectors, Compliant
Committee a majority of whom shall be independent 2out3Non-Executive
directors are independent.
57SamSon international PlC annual report 2013/14
CSE Rule No. Subject Applicable Requirement Compliance Status
7.10.5(b) ReportofRemuneration TheRemunerationCommitteeshall Compliant
recommend the remuneration
of Chief Executive Officer and
Executive Directors
7.10.5(c) DisclosureintheAnnualReport TheAnnualReportshouldsetout:
relatingtoRemuneration a. NamesofDirectorscomprising Compliant
Committee theRemunerationCommittee
b. Statement of remuneration policy Compliant
c. Aggregate remuneration paid to Compliant
Executive&Non-ExecutiveDirectors Plseepage74
7.10.6 AuditCommittee TheCompanyshallhaveanAuditCommittee Compliant
Rule No. Subject Applicable Requirement Compliance Status
7.10.6.(a) Thecompositionof a. ShallCompriseNon-ExecutiveDirectors, Compliant
Audit Committee a majority of whom can be independent 2out3Non-Executive
directors are independent.
b. Chief Executive officer and the chief Compliant
Financial Officer should attend Audit
committee meetings
c. The Chairman of the Audit committee or Chairman is a member of
One member should be a member of a Institute of Chartered
professional Accounting body Accountants of Sri Lanka
7.10.6.(b) AuditCommitteefunctions Overseeingofthe Compliant
(i) Preparation, Presentation and adequacy of Audit Committee oversees
disclosures in the financial statements in the integrity of the
accordance with Sri Lanka Accounting financial statement.
Standards.
(ii) Compliance with financial reporting Compliant
requirements, information requirements of Audit Committee oversees
the Companies Act and other relevant the requirement of the
financial reporting related regulations Companies Act and
and requirements other regulations.
(iii) Processes to ensure that the internal Compliant
controls and risk management are Audit Committee oversees
adequate, to meet the requirements of effectiveness of internal
the Sri Lanka Auditing Standards. control and risk
management,
cOrpOrate Governance (contd...)
58SamSon international PlC annual report 2013/14
cOrpOrate Governance (contd...)
Rule No. Subject Applicable Requirement Compliance Status
(iv) Assessment of the independence and Compliant
performance of the external auditors. Audit Committee oversees
independence and
performance of the external
auditors.
(v)Makerecommendationtotheboard Compliant
pertaining to appointment, re-appointment Audit Committee
and removal of external auditors and to makes such
approve the remuneration and terms of recommendations.
engagement of the external auditors
7.10.6.(c) DisclosureintheAnnualReport a. NamesofDirectorscomprisingtheAudit Compliant
relating to Audit Committee Committee.
b. The Audit Committee shall make a Compliant
determination of the independence of
the Auditors and disclose the basis
for such determination.
c. TheAnnualReportshallcontainaReport Compliant
of the Audit Committee setting out the
manner of compliance of the function. Plseepage72,73.
The Code of Best Practice of Corporate Governance issued jointly by the Securities Exchange Commission of Sri Lanka and the
Institute of Chartered Accountants of Sri Lanka, which are voluntary provisions, has been also been fully complied with.
Internal Controls TheInternalAuditfunctionoftheCompanycontinuestobeoutsourcedandisbeingcarriedoutbyMsErnst&Youngand
Company, Chartered Accountants. They assess the strengths and weaknesses of the Company’s Internal Control System and liaise
closely with the Audit Committee on a quarterly basis in making recommendations on improving these systems. Controls are in
place to safeguard the Company’s assets, physical or otherwise, and ensure that proper records of each Company’s transactions are
maintained. Directors are responsible for establishing appropriate systems of internal control in the Company and reviewing the
effectiveness of the system of internal controls constantly.
Going ConcernTheDirectorshavecontinuedtousethe“Goingconcern”basisinthepreparationofFinancialStatements,aftercarefulreviewofthe
financial position and cash flow status of the Company. The Board of Directors believes that the Company has adequate resources
to continue in operation for the foreseeable future.
Secretary to the BoardPWCorporateSecretarial(Pvt)Ltd.actsasSecretariestothecompany.TheyadvisetheBoardonappropriateproceduresforthe
management of its meetings and duties, as well as the compliance of corporate governance in the Company.
59SamSon international PlC annual report 2013/14
risk Management“The Company ensures the “minimization of
risks” by adopting many strategies for smooth
Company operations … “
TheRiskManagementPolicyofSamsonInternational
Plc is to proactively manage risk to ensure continued
growth of our business and to protect our employees, assets
and reputation. Our ongoing assessment process takes into
account the likelihood of an event, its potential impact on the
business, the need for mitigation and to take corrective action.
Weneedtohaveaneffectiveriskmanagementsystemwhile
maintainingbusinessflexibility.Wewillidentifyandassess
material risks associated with our business, monitor, manage
and mitigate these risks.
Managingbusinessandfinancialrisksisoffundamental
importance in maintaining sustainable growth and making
steady progress towards the achievement of corporate
goals and objectives. The risk management process has
been designed to ensure identification of any situation or
circumstance that would adversely affect the achievement
of the Company’s objectives. The company has a proactive
approach to business, aimed at enhancing shareholder value.
The company reviews and assesses significant risks on a regular
basis and has implemented an oversight programme to ensure
that there is a system of internal control in place. The Audit
Committee reviews and monitors internal controls. The Audit
ReportsarereviewedbytheAuditCommitteealongwiththe
RiskReportsandComplianceReportsonaquarterlybasis.
The potential risks are identified through risk workshops, risks
reviews, essential control checklists and risks reporting. The
Board also reviews its strategies, processes, procedures and
guidelines on a continuous basis to effectively identify, assess
and respond to risks.
60SamSon international PlC annual report 2013/14
risk Management (contd...)
TheRiskManagementTablebelowexplainsthetypeofrisk,riskexposure,mitigatingactionandriskrankingoftheCompany.
Risk Risk exposure Mitigating action Risk Ranking
Financial Related risks
1) CreditRisk Riskarisingduetodefaultof ThishasbeenexplainedunderNote5ofthe Medium
payment. Higher credit risk may Financial Statement on pages 92 and 93.
adversely impact both liquidity
and profitability.
2) Operational Internalprocessfailures, ThishasbeenexplainedunderNote5ofthe Medium
processRisk fraud,pilferageandbreakdown FinancialStatementonpages92and93.
of internal controls
3) Financing Inabilitytosatisfydebt ThishasbeenexplainedunderNote5ofthe Low
and Interest repayments and obtain Financial Statement on pages 92 and 93.
rate risk the best interest rates.
4) Foreign Depreciationoftherupeevalue ThishasbeenexplainedunderNote5ofthe Medium
Exchange and loss of exchange in Financial Statement on pages 92 and 93.
rateRisk conversioninrelationtoexport
proceeds, import payments and
foreign currency debt
transactions.
5) Project Newprojects/Capital ThishasbeenexplainedunderNote5ofthe Medium
Managementexpendituresinvolve FinancialStatementonpages92and93.
Risks highrisksanduncertainties
in terms of delays and cost
overruns. Failure of major
projects will affect profitability,
capital structure and reputation.
61SamSon international PlC annual report 2013/14
risk Management (contd...)
Risk Risk exposure Mitigating action Risk Ranking
Non-Financial Related risks
6) Reputation Adverseimpactonthe a)Maintenanceofhighestethicalstandardsat Low
Risk corporateimageandbrand alltimesinallbusinessactivitiesandmake
which is likely to diminish compliance audit as part of internal audit scope.
shareholder value.
This will finally lead to a b) Proper adherence to the statutory, health and
decline in market share safety concerns by obtaining appropriate
and customer base. quality certification standards.
c) Continuous review of customer comments in order
to exceed customer expectations and ensure quality
standards are adhered to and improved upon.
d)TheCompanyplaysacorporatecitizenrole
throughCSRinitiatives.
7) Human Riskoflosingskilledand a)Providefocusedandstructuredtraining medium
Resources trainedhumancapital tostaffatalllevelstoaidpersonal
Risk andprofessionaldevelopment.
b) Establish career development programmes and
succession plans in order to retain and motivate them.
c)Maintaininggoodrelationshipswithemployees
through regular dialogue.
d) Top priority is given to automation of manual work.
8) Technological Riskoflowproductivityand a)Frequentvisitsofoverseasexhibitionsandcontinuous medium
Risk highmaintenancecosts investmentinmodernmachinery.
compared to the products
manufactured by competitors. b) Continuous competitor analysis is carried out.
c) InvestinginResearchandDevelopmentactivities
throughout the year.
d)InvestinginERPsystem,hardwareand
developing software in-house.
9) Procurement Riskofnon-availability a)Establishingrelationshipswithmanyglobalandlocal medium
Risk ofrawmaterialsand suppliersforrawmaterialsandcommodities
excessive prices. in order to reduce over dependency
onasinglesupplier/brand.
b) Store raw materials when the prices are low and
enter into forward contracts for raw material purchases.
a) Consume energy in the most efficient way.
62SamSon international PlC annual report 2013/14
risk Management (contd...)
Risk Risk exposure Mitigating action Risk Ranking
10) Inventory Riskofhavingnon-moving a) Identifyingslow-movingstocksandsellthemin medium
Risk stock adifferentmarket.
b) Re-orderlevelandeconomicorderquantity
are established.
11) Riskof Riskoflosingourmarket a) Ensuringhighstandardsofqualityin High
Competition share and sales growth to the eyes of the customer and branding all our products.
Chinese low quality products
and to other substitute b) Participate in trade fairs both local and
products,e.g.PVC-Related foreigntoattractnewcustomers.
Products
c) Identify the products which are in the decline stage
of the Product Life cycle and take corrective action.
d) Sourcing new markets and developing new products.
e) Makenecessaryinvestmentstoupgradethefacilities.
f) Corporate plan is prepared every three years and
monitored closely.
g) Increasing productivity and efficiency in order to
ensure our prices remain competitive.
h)CarryingoutResearchandDevelopmentactivitiesto
identify needs.
i) The provision of various value added services for
our key customers.
j) ManufacturePVC-relatedproductswherethereis
highdemand,e.g.,PVChoses
12) StatutoryandRiskofnon-compliance a) Createawarenessofstatutoryobligationsatalllevels. Low
Regulatory withchangesinlegal
Risk andregulatoryenvironment, b) Seekadvicefromexternalconsultantson
taxation, labour and other all matters relating to litigation and contracts.
laws will result in judiciary
actions. c) Product liability insurance is taken for hot water bottles.
d) Have a central record room to keep all our important
documents for 10 years.
e) Continuous dialogue with statutory bodies to meet
updated reporting requirements.
63SamSon international PlC annual report 2013/14
risk Management (contd...)
Risk Risk exposure Mitigating action Risk Ranking
13) Fire and Fire and natural disasters can a) Obtaining comprehensive insurance cover for Low
natural halt or cease operations fire and natural disasters.
disaster risk
b) Fire safety drills and training is given to ensure
the occurrence of fire is kept to a minimum.
The company is equipped with firefighting equipment
at all strategic locations in the factory.
14) Information Tominimizeriskassociated a) Databack-upsstoredinoffsitelocations. Low
systems risk with data security, hardware
&communicationandsoftware. b) Maintainingofspareservers.
c) Vendoragreementsforsupportserviceand
regular maintenance.
Statutory and Regulatory Risk
Low
64SamSon international PlC annual report 2013/14
RiskMinimizationStrategiesappliedtothenewbusinesslineofPVCInordertoandtominimizethecurrentbusinessriskandalso
tomoveforwardinthedirectionofourVision,weinvestedina
PVCfactoryrecently.Priortotakingoverthisfactory,Samson
International Plc faced many risks, namely,
1) In the past we lost a significant market share for our
rubberhosesastherearePVChoseswithabetterfinish
and lower price. So we faced a Risk of Competition.
2) FurtherweusealotofPVC-relateditemsasraw
materialsforourfinishedproducts,e.g.,PVCstoppersfor
hot water bottles. These are imported from China and
there are frequent complaints about the quality of these
stoppers from our customers (Operational Risk).
3) Wehaveexperiencedthatevery3-4years,rubberprices
sky rocket. During this time, sales of rubber-related
products decrease. Therefore during such times, we can
makesomeofourproductsoutofPVC,e.g.,PVChot
waterbottles,PVCjarsealingrings,PVCbathmats,etc,
which can be competitive in the market. Therefore we
could eliminate the Business Risk.
Therefore in order to eliminate above risks, we decided to step
intomanufacturingPVCproductsandpurchasedassetsof
OktaPVCLanka(Private)Ltd.,Baddegama,
WhenwenegotiatedthepriceforPVCbusiness,we
eliminatedtheriskinthefollowingmanner:
a) Wesearchedforafactoryclosetoourcurrent
factory. This eliminates some operational risks and
we found a suitable factory.
b) Weeliminatedtheriskoftransferringoldtax
liabilitiesandpenaltiestous.Weacceptedtheir
liabilities but excluded tax liabilities. Therefore, the
finance and legal risks were eliminated.
c) Weeliminatedtheriskofpaymentsmadeto
unknown creditors and accrued expenses in the
future. This has to be settled by the current owner
asperourlegalagreement.Weeliminatedfinance
risk.
d) Weeliminatedtheriskofbaddebts.Duesfrom
debtors have to be collected by the previous owner.
The previous owner has to collect all dues from
debtors and it is part of his purchase consideration.
e) Weeliminatedtheriskofchequesinhandbeing
dishonoured.Wegavethesechequestotheprevious
owner as part of purchase consideration.
f) Weobtainedtheservicesofoldemployeesby
giving them new letters of appointment. Therefore
no old EPF, ETF and gratuity issues and penalties will
be faced by our Company.
g) Wedecidedtopayelectricity,insuranceand
telephonebillstominimizetheoperational risk.
h) Wedidadiligenceauditbygivingittoareputed
Audit Firm. This eliminated all financial risk.
i) AvaluationreportforLand&Buildingswas
obtained.
j) A title deed search was done and a survey plan was
carried out.
k) Physical verification of assets was carried out.
l) RequiredBoardresolutionswerepassedafterwe
obtainedtheapprovaloftheAuditCommittee.We
checked whether it was under major transactions
under Section 185 of the Companies Act.
m) Informed the Colombo Stock Exchange. There is no
legal risk.
n) MarketresearchwascarriedoutforPVCproducts
before we invested in them. Therefore there is no
market risk.
o) Negotiatedbankingfacilitiesforthenewbusiness
in advance. Therefore there is no business and
finance risk.
risk Management (contd...)
65SamSon international PlC annual report 2013/14
repOrt of the Board of Directors
The Directors of Samson International Plc have pleasure in
presenting their report together with the audited financial
statementsoftheCompanyfortheyearended31stMarch
2014, which was approved by the Directors at a meeting held
on 1st August 2014.
GeneralSamson International Plc is a public limited liability Company,
incorporated in Sri Lanka on 14th October 1988 and re-
registeredundertheCompaniesActNo.7of2007on3rd
September 2008 under registration number PO 192. The
ordinary shares of the Company were listed in the Colombo
Stock Exchange of Sri Lanka on 24th July 1992 and the
Company was converted into a public quoted company.
ThisReportprovidestheinformationasrequiredbythe
CompaniesActNo.07of2007,theListingRulesofthe
Colombo Stock Exchange and recommended best practices on
Corporate Governance.
The Principal Activities of the CompanyThe principal activity of the Company is the manufacture of
unhardenedvulcanizedrubberproductsfortheinternational
and local market. There have been no significant changes in the
nature of the Company’s principal activities during the year.
Accounting PoliciesA summary of the significant accounting policies adopted in the
preparation of the Financial Statements is given on page 83 of
thisReportasrequiredbySection168(1)(d)oftheCompanies
ActNo.7of2007.Thepoliciesadoptedareconsistentwith
those adopted in the previous financial year.
ReviewoftheyearTheChairman’sreviewandtheManagingDirector’soperational
review together with the Financial Statements highlight the
Company’s performance during the period under review and
thestateofaffairsasat31stMarch2014.
SegmentReporting
Segment-wise products contribution to the Company’s revenue,
results,assetsandliabilitiesisprovidedinNote28tothe
FinancialStatementsonpage107.
TurnoverTurnoveroftheCompanyisRs.953mnin2013/14as
comparedtoRs.974mninthelastyear.
Turnoverbysegment:
2013/2014 2012/2013
Medicalitems 209,496 213,671
Food grade items 286,664 291,250
Householditems 108,275 138,555
Footwear components 348,126 330,381
Totalturnover 952,561 973,857
Rs in 000’
66SamSon international PlC annual report 2013/14
Profits: 2013/2014 2012/2013
Profitfortheyear 64,841 51,077
(after payment of all expenses, making provision for known liabilities and
depreciation on property, plant and equipment)
Tax on profits (8,491) 4,438
Profit after taxation 56,350 55,515
Retainedprofitsbroughtforward 185,152 137,333
Profitsavailableforappropriation/distributions 241,502 192,848
Proposedfirst&finaldividends (7,696) (7,696)
Retainedprofitscarriedforward 233,806 185,152
repOrt OF tHe Board of Directors (contd...)
TaxationUnderSection52oftheInlandRevenueActNo10of2006,taxprofitonexportsales,taxprofitonlocalsales,interestincomeand
agriculture income of the Company are taxed at the rate of 12%, 28%, 28% and 10 % respectively.
InvestmentsinProperty,Plant&EquipmentDuringtheyear2013/2014,theCompanyinvestedRs.25.8mninproperty,plant&equipment.Thetotalinvestmentsinproperty,
plant&equipmentasat31stMarch2014amountedRs.500mnasopposedtoRs.474mnasat31stMarch2013.Theinformation
relatingtothemovementinproperty,plant&equipmentisgiveninNote13totheFinancialStatementonpage97.
StatedCapital&ReservesThe movement of the Stated capital is as follows.
2013/2014 2012/2013
Statedcapital-Rs 105,752 105,752
No.ofOrdinaryshares 3,847,974 3,847,974
DetailsoftheStatedcapitalaregiveninNote21totheFinancialStatementsonpage102ofthisAnnualReport.Therightsand
obligations attaching to the ordinary shares are set out in the Articles of Association of the Company, a copy of which can be
obtained from the Secretaries upon request.
ReservesTheGroupreservesasat31stMarchwereasfollows.
2013/2014 2012/2013
General reserves 110,000 110,000
Revenuereserves 233,806 185,152
Total reserves 343,806 295,152
67SamSon international PlC annual report 2013/14
DirectorateThe names of the Directors who held office at the end of the financial year are given below and their brief profiles appear on pages
18 and 19.
1) DRD.S.Rajapaksa(Chairman)
2) MrD.K.Rajapaksa(ManagingDirector)
3) MrD.R.Rajapaksa(Non-ExecutiveDirector)
4) MrD.M.Rajapaksa(Non-ExecutiveDirector)
5) MrC.Cumaranatunge(Non-ExecutiveDirector)
6) MrG.H.A.Wimalasena(Independent,Non-ExecutiveDirector)
7) MrT.K.Bandaranayake(Independent,Non-ExecutiveDirector)
8) MrB.L.P.Jayawardena(ExecutiveDirector)
9) MrD.G.P.S.Abeygunawardana–Director/GeneralManager
(appointedon8/8/2013asDirector)
10) MrR.H.Nandajeewa–Director
(Resignedon8/8/2013)
IntermsofArticle88(i)oftheArticlesofAssociation,MrD.R.RajapakseandunderSection210oftheCompaniesActNo.7of
2007,MrT.K.BandaranayakeandMrG.H.A.Wimalasenaareavailableforre-election.
Directors’ interest in sharesDirectors’ holdings of ordinary shares in the Company are given below.
No of Shares as at No of shares as at
31.03.2014 31.03.2013
DrD.S.Rajapaksa 7,156 7,156
Mr.D.K.Rajapaksa 9,931 9,931
Mr.D.R.Rajapaksa 10,319 10,319
Mr.D.M.Rajapaksa 9,295 9,295
Mr.C.Cumaranatunge 2,244 2,244
Mr.G.H.A.Wimalasena Nil Nil
Mr.T.K.BandaranayakeNil Nil
Mr.B.L.P.Jayawardena Nil Nil
Mr.D.G.P.S.Abeygunawardana(appointedon8/8/2013) 100 -
Mr.R.H.Nandajeewa(retiredon8/8/2013) - 132
Total 39,045 39,077
repOrt OF tHe Board of Directors (contd...)
68SamSon international PlC annual report 2013/14
The Directors of the Company who have relevant interests in
the shares of the Company have disclosed their shareholdings
in compliance with Section 200 of the Companies Act.
Directors’RemunerationandOtherBenefits The details of the Directors’ remuneration and other benefits,
in respect of the Company for the financial year ended 31
March2014isgiveninNote8.1totheFinancialStatements
onpage94ofthisReport,asrequiredbySection168(1)(f)of
theCompaniesActNo.07of2007.Directors’remuneration
forthefinancialyear2013/14isRs.8,376,395(lastyear
Rs.8,057,195).
Directors’interestintransactions:The Directors of the Company have made a disclosure as
requiredunderSection192(2)oftheCompaniesActNo.07of
2007.Note27tothefinancialstatementsdealingwithrelated
party disclosures include their interests in transactions under
note27.3onpage105.
InterestRegisterTheInterestsRegisterismaintainedbytheCompany,asper
theCompaniesAct,No.7of2007.AllDirectorshavemade
declarationsasprovidedforinSection192(1)&(2)ofthe
Companies Act aforesaid. The related entries were made in the
InterestsRegisterduringtheyearunderreview.TheInterests
RegisterisavailableforinspectionasrequiredbySection119
(1)(d)oftheCompaniesActNo.07of2007.
Board committeesThe Board while assuming the overall responsibility and
accountability in the management of the company has also
appointed Board Committees to ensure oversight and control
over certain affairs of the Company, conforming to the
corporate governance code and adopting the best practices.
Accordingly, the following Committees have been constituted
bytheBoard:
AuditCommittee:MrT.K.Bandaranayake–Chairman, Independent,
Non-ExecutiveDirector
MrG.H.Wimalasena Independent,
Non-ExecutiveDirector
MrD.M.Rajapaksa Non-ExecutiveDirector
repOrt OF tHe Board of Directors (contd...)
TheReportoftheAuditCommitteeisgivenonpages72and
73,whichformspartoftheAnnualReport.
RemunerationCommittee:MrG.H.A.Wimalasena–Chairman, Independent,
Non-ExecutiveDirector
MrT.K.Bandaranayake Independent,
Non-ExecutiveDirector
Mr.D.M.Rajapaksa Non-ExecutiveDirector
TheReportoftheRemunerationCommitteeisgivenonpage
74,whichformsapartoftheAnnualReport.
Employment Policies The Company continues to invest in human resource
development and implements effective practices to develop and
build an efficient and effective workforce to ensure optimum
contribution toward the achievement of its corporate goals.
The Company employment policies are based on recruiting
the best people, providing them training to enhance their
skills, and recognition of the innate skills and competencies
of each individual while offering equal career opportunities
regardless of gender, race or religion and to retain them with
the Company as long as possible. The number of persons
employed by the Company at year-end was 324 (last year 302).
System of internal controlsThe Board of Directors has established an effective and
comprehensive system of internal controls to ensure that proper
controls are in place to safeguard the assets of the Company,
to detect and prevent fraud and irregularities, to ensure that
proper records are maintained and Financial Statements
presentedarereliableandaccurate.MonthlyManagement
Accounts are prepared, giving management relevant, reliable
and up -to-date Financial Statements and key performance
indicators. The Statement on Directors ‘responsibility for
financialreportingoftheCompanyissetoutonpage71ofthis
Report.
The Audit Committee reviews, on a regular basis, the reports,
policies and procedures to ensure that a comprehensive internal
control framework is in place.
69SamSon international PlC annual report 2013/14
DonationsThetotalamountofdonationswasRs.39,519intheyear
2013/14(20012/13–Rs44,500).Thishasnotexceededthe
amount approved by shareholders at the last Annual General
Meeting.Nodonationwasmadeforpoliticalpurposes.
MajorTransactionsThere have been no transactions during the year under review
whichfallwithinthedefinitionof“MajorTransactions”in
termsofSection185oftheCompaniesAct,No.07of2007.
ThetotalassetsoftheCompanyisRs.654mnand50%of
thetotalassetsisRs.327mn.TheCompanyhasnotbought
anyassetsorundertakenanyliabilitiesgreaterthanRs.327mn
during the year under review.
Share informationThe information pertaining to earnings per share, dividend
per share, net assets per share and market value per share is
given in the financial highlights on page 01 and in the Ten-year
summaryonpage133ofthisAnnualReport.
The twenty major shareholders and percentages held by each
oneofthemasat31stMarch2014aregivenonpage130of
theAnnualReport.
Public holding of shares in the CompanyAsat31stMarch2014,thepublicheld43.04%(in2012/2013-
13.91%) of the shares of the Company. This significant
difference arose due to changes in the interpretation of
thedefinitionof“PublicHolding”bytheColomboStock
Exchange.
Statutory PaymentsThe Directors, to the best of their knowledge and belief, are
satisfied that all statutory payments due to the government,
other regulatory institutions and in relation to employees
have been made within the stipulated period and have been
accounted for during the financial year.
Compliance with laws and regulationsTo the best of the knowledge and belief of the Directors, the
Company has not engaged in any activities contravening the
laws and regulations of the country.
repOrt OF tHe Board of Directors (contd...)
Social and Environmental ResponsibilityAs a responsible corporate body, the Company has taken
allnecessarystepsandprecautionstominimizeanyadverse
impactoftheCompany’sactivitiesontheenvironment.When
introducing new business, products, methods and machines,
maximum care is taken to ensure that these conform to
accepted environmental and safety regulations and standards.
The Directors, to the best of their knowledge and belief, are
satisfied that the Company has not engaged in any activities
which have caused adverse effects on the environment and it
has complied with the relevant environmental regulations.
SustainabilityReportingSustainability practices have been built into every aspect of our
businesses and we consider sustainability goals along with our
operationalandfinancialgoals.ThisSustainabilityReportison
pages108to121ofthisAnnualReport.
Corporate GovernanceThe Company maintains and practices high principles of good
corporate governance. The Directors are responsible for the
formulation and implementation of overall business strategies,
policies and setting standards in the short, medium and long-
term adopting good governance in managing the affairs of the
Company. The practices adopted by the Company in relation
to corporate governance are set out on pages 53 to 58 of this
Report.
Auditor’sReportTheCompany’sexternalauditor,Messrs.HLBEdirisinghe&
Company, performed the audit on the Financial Statements
fortheyearended31March2014.TheAuditor’sReporton
theFinancialStatementsisgivenonpage77ofthisReportas
required by Section 168 (1) (c) of the Companies Act.
Appointment of AuditorsTheretiringAuditorsHLBEdirisinghe&Company,Chartered
Accountants, have expressed their willingness to continue
in office. A resolution to re-appoint them as auditors and
authorizetheDirectorstofixtheirremunerationwillbe
proposedattheAnnualGeneralMeetingintermsofthe
CompaniesAct,No.7of2007.
70SamSon international PlC annual report 2013/14
Auditor’sRemunerationandIndependenceThe Company paid audit fees to the external auditors for the
year2013/14amountingtoRs.282,900(2013-Rs.265,200).
BasedonthedeclarationprovidedbyMs.HLBEdirisinghe&
Company and as far as the Directors are aware, the Auditors do
not have any relationship with or interests in the Company that
may have a bearing on their independence, within the meaning
of the Code of Professional Conduct and Ethics issued by the
Institute of Chartered Accountants of Sri Lanka.
Outstanding litigationIn the opinion of the Directors, in consultation with the
Company lawyers, there is no litigation currently pending
against the Company which will have a material impact on the
reported financial results or future operations of the Company.
Post Balance sheet eventsIn the opinion of the Directors, no item, transaction or event of
an unusual nature has taken place between the financial year-
end and the date of this report that would materially affect
the results of the Company for the financial year in respect of
which this report is made.
On14thJuly2014,theCompanyinvestedinaPVCfactory,
OktaPVCLanka(Pvt)Ltd.,Baddegama,whowereengagedin
manufacturingPVCpipe&fittingsunderSLS.Thetotalassets
valueandLiabilitiestakenbyusareRs.137,167,655and
Rs.113,339,588respectively.Theamountpaidtotheowner
wasRs.23,828,067.ThecompanyinformedtheColombo
Stock Exchange prior to investing in this business line.
Going ConcernThe Board of Directors has reviewed the Company’s business
and corporate plans and are satisfied that the Company has
adequate resources to continue its operations in the
foreseeable future. After considering the financial position,
operating conditions, regulatory and other factors and such
matters required to be addressed in The Corporate Governance
Code, the Directors have a reasonable expectation that
the Company possesses adequate resources to continue in
operation for the foreseeable future. For this reason, they
continue to adopt the Going Concern basis in preparing the
Financial Statements.
repOrt OF tHe Board of Directors (contd...)
Financial Statements of the Company The Financial Statements of the Company, duly certified by the
Head of Finance and approved by two Directors in compliance
withSections152,153and168oftheCompaniesActNo.7of
2007,aregivenfrompages78to107oftheAnnualReport.
SecretariesPWCorporateSecretarial(Pvt)Ltd.continuestoworkas
Secretaries to the Company.
DividendsThe Directors recommend a dividend of 2.00 per share for the
yearended31stMarch2014(2.00persharein2012/13).
NoticeofMeetingDetailsoftheAnnualGeneralMeetingaregivenintheNotice
ofMeetingonpage136.
22ndAnnualGeneralMeetingThe22ndAnnualGeneralMeetingoftheCompanywillbeheld
onMondaythe19thdayofSeptember2014attheSriLanka
CollegeofObstetriciansandGynecologistsSamsonRajapaksa
AuditoriumatNo112,ModelFarmRoad,Colombo08,which
was the same venue for the previous year.
On behalf of the Board
D.K. Rajapaksa D. G. P. S Abeygunawardana
ManagingDirector Director/GeneralManager
P W Corporate Secretarial (Pvt) Ltd.
Secretaries
Colombo
1st August 2014.
71SamSon international PlC annual report 2013/14
stateMentof Directors responsibility
The following statement, which should be read in
conjunction with the Auditor’s responsibilities, as set out
in their report, is made with a view to distinguish between the
respective responsibilities of the Directors’ and the Auditor’s, in
relation to Financial Statements.
TheDirectorsarerequiredbytheCompaniesAct,No07of
2007,toprepareFinancialStatementsforeachfinancialyear,
which give a true and fair view of the state of affairs of the
Company as at the end of the financial year and of the profit
and loss for the financial year. The Directors are required to
prepare these Financial Statements on the going concern basis,
unless it is not appropriate.
Since the Directors are satisfied that the Company has the
resources to continue its business for the foreseeable future,
the Financial Statements continue to be prepared on the said
basis.
The Directors consider that in preparing the Financial
Statements, the Company has used appropriate accounting
policies, consistently applied, and supported by reasonable
and prudent judgments and estimates, and that all accounting
standards which they consider to be applicable have been
followed.
The Directors are responsible for ensuring that the Company
keeps accounting records which disclose with reasonable
accuracy the financial position of the Company, and which
enable them to ensure that the Financial Statements comply
withtheCompaniesAct,No.07of2007.
The Directors have general responsibility for taking such steps
as are reasonably open to them to safeguard the assets of
the Company and to prevent and detect fraud and other
irregularities.
The Directors are of the opinion that the Financial Statements
oftheCompanysetoutonpages78to107havebeen
prepared in accordance with the above requirements and that
they have appropriately discharged their responsibilities as set
out in this Statement.
The Directors confirm that to the best of their knowledge,
all taxes, duties and levies payable by the Company and all
contributions, levies and taxes payable on behalf of and in
respect of the employees of the Company, and all other known
statutory dues as were due and payable by the Company, as at
the Balance Sheet date have been paid, or where relevant are
being provided for.
On behalf of the Board
D. K. Rajapaksa D. G. P.S. Abeygunawardana
ManagingDirector Director/GeneralManager
Colombo
1st August 2014.
72SamSon international PlC annual report 2013/14
auDitcommittee report
TheAuditCommitteecomprisesthreeNon-Executive
Directors the majority of whom are independent. The
CommitteeischairedbyMrT.K.Bandaranayake,whoisa
FellowMemberoftheInstituteofCharteredAccountantsofSri
LankaandformerSeniorPartnerofMessrsErnst&Young.
MembersoftheAuditCommitteeandDetailsofMeetingsheldThe attendance of the members of the Audit Committee was
asfollows:
Name of Director Status 27th May 08thAugust 11thNovember 13thFebruary 26thMay No of
2013 2013 2013 2014 2014 Attendance
MrTKBandaranayake
(Chairman) NE/I √ √ √ √ √ 5/5
MrGHAWimalasena NE/I x √ √ x √ 3/5
MrDMRajapaksa NE √ √ √ √ √ 5/5
Member’sattendanceattheAuditCommitteemeetingsofSamsonInternationalPlc
Note:MrGHAWimalasenawasunabletoattendtwomeetingsashewasawayonoverseastours.
The Audit Committee held five meetings during the year under
review. The proceedings of the Audit Committee are regularly
reported to the Board of Directors.
RoleoftheAuditCommitteeThe functions of the Audit committee are in line with the
requirementoftheSecurities&ExchangeCommissionofSri
Lanka and the best practices of Corporate Governance. These
included, inter alia, ensuring the effectiveness of internal
controls and procedures for financial reporting purposes
and the integrity of financial statements as well as the
independence of the external auditors.
TheAuditCommitteewasresponsibleforthefollowing:
1.Meetingswiththeauditorstodiscussanyproblemsand
reservations arising from the audit and any other matters
that the auditor may wish to discuss independent of the
management.
2. Reviewingtheintegrityandadequacyofthedisclosures
in the financial statements of the company in accordance
withtheCompaniesAct,No.7of2007,theSriLanka
Accounting Standards and Accounting Policies which are
consistently applied.
3. Reviewingthefinancialreportingsystemtoensure
the accuracy and timelines of the financial statements
produced.
4. Reviewingandensuringtheadequacyandeffectiveness
of the Company’s internal control systems and risk
management.
5. Oversight on the compliance by the company with the
requirements of the statutory and regulatory framework.
Compliance is monitored quarterly through the ‘Company
Reports’.
6. MakingrecommendationstotheBoardofDirectorsonthe
appointment/re-appointmentandtheremunerationofthe
external auditors based on their performance.
7. Examininganynon-auditworkperformedbytheauditors
to ensure that their independence is not impaired.
Internal Audit FunctionThe Audit Committee reviews the Quarterly Internal Audit
Reports.TheinternalauditfunctioniscarriedoutbyM/sErnst
&Young.Theinternalauditreportsarereviewedthoroughly
and recommendations are made for rectification.
73SamSon international PlC annual report 2013/14
Audit Committee
auDit committee report (contd...)
ConclusionThe committee reports to the Board of Directors, identifying
the matters in respect of which it considers that action or
improvement is needed and making recommendations as to
the steps to be taken.
The Audit Committee is satisfied that the company’s accounting
policies, operational controls and risk management practices
provide reasonable assurance that the affairs of the Company
are managed in accordance with the Company policies and
that the Company assets are properly accounted for and
adequately safeguarded.
The Committee has recommended to the Board of Directors
thatMessrsHLBEdirisinghe&Co.,CharteredAccountants,be
re-appointed as the Auditors for the financial year ending 31st
March2015,subjecttotheapprovaloftheshareholdersat
theAnnualGeneralMeetingatafeetobedeterminedbythe
management.
T. K. Bandaranayake
Chairman
Audit Committee
Colombo
1st August 2014
74SamSon international PlC annual report 2013/14
repOrt OFthe remuneration committee
TheRemunerationCommittee,appointedbyand
responsible to the Board of Directors, consists of two
independent,Non-ExecutiveDirectors,MrG.H.A.Wimalasena
andMrT.K.BandaranayakeandanotherNon-Executive
DirectorMrD.M.Rajapaksa.ThecommitteeischairedbyMr
G.H.A.Wimalasena.
RoleoftheCommittee:TheRemunerationCommitteereviewsandrecommendstothe
Board of Directors the policy on remuneration for the executive
staff, specific remuneration packages for the Executive Directors
andrevisionoffeesfortheNon-ExecutiveDirectors.Directors’
remunerationforthefinancialyear2013/14isRs.8,376,395
(lastyearRs.8,057,195).
RemunerationPolicy:In a highly competitive environment, attracting and retaining
high caliber executives is a key challenge faced by the Group.
In this context, the Committee took into account competition,
market information and performance evaluation methodology
in declaring the overall remuneration policy.
TheRemunerationCommitteeheldtwomeetingsduringthe
year under review.
G.H.A. Wimalasena
Chairman
RemunerationCommittee
Colombo
1st August 2014.
RemunerationCommittee
75SamSon international PlC annual report 2013/14
Financial review
“During the year, the Company reduced the
finance cost by 62%, reduced gearing to 6.8%
and took many investments decisions… “
Revenue
Duringtheyearended31stMarch 2014, the Company
recordedaturnoverofRs.953mnasagainstRs974mn
inthepreviousyear.Itisnotedthattherewasagrowthof7%
inlocalsalesintheyear.LocalsaleswentupbyRs21mnfrom
Rs.318mninthepreviousyeartoRs.339mninthecurrent
year.However,exportsaleshavecomedownby6.5%orbyRs
43mnfromRs.656mninthepreviousyeartoRs.613mnin
the current financial year.
Inlocalsales,itisnotedthatsalesofVstrapandshoesoles
have gone up significantly in the current financial year.
Rubbermats,roadhumpsandrubberhosesaleshavebeen
growinggradually.Wehavestillnotseenasignificantsales
improvementinfloorings.Wehavetappedalmostevery
customer in the pipe joints market and had a significant sales
growthintheyear.Wewilldevelopourlocalsalesfurther
through aggressive sales promotions and by strengthening and
restructuringtheMarketingDepartment.
In exports sales, we noted a marginal drop in sales in jar sealing
rings, hot water bottles and rubber mats. During the year, we
had experienced a favourable gain from Euro exchange rates.
However, we encountered an adverse impact on our sales
from India, South Africa and Japan due to the devaluation
of their currencies, which affected our sales of hot water
bottles, mud flaps and bath mats. It is noted that that there
was a significant growth in rubber pallet bands and some
improvements in sales from floorings.
OutofthetotalrevenueofRs953mnfortheyearended31st
March2014,64%wasearnedfromexportssalesandthe
balance 36% from local sales.
GrossProfitMarginTheCompanyhasrecordedagrossprofitofRs145mnas
againstRs150mninthepreviousyear.Themainreasonforthe
drop in gross profits was a decrease in export sales, increase in
energy costs and salaries and wages, unfavourable exchange
rates of India, South Africa and Japan and also the amount
written off from non-moving finished goods stocks and raw
materials.TheGrossProfitRatiointhecurrentyearaswell
as in the previous year is 15%. The reduction of production
overheads and wastage levels were achieved effectively.
Wastelevelsinjarsealingringscamedownthisyeartoan
unprecedented level.
OperationalProfitMargin(Profitbefore Finance cost)TheOperationalProfitinthecurrentfinancialyearisRs
47.7mnandlastyearitwasRs.54.0mn.Thesellingand
distributioncostwasRs.24mninthecurrentyearasagainst
Rs24.8mninthepreviousyearwhileAdministrativeOverheads
wasRs.75mnduringtheyearunderreviewasagainstRs72.7
mn. This year’s Administrative Overhead cost includes the
amount written off of intangible assets. The exchange gain
earned due to the depreciation of the local currency against
foreigncurrencieswasRs.17.7mninthecurrentyearas
againstRs6.2mninthepreviousyear.However,welostsome
revenue due to the adverse impact from the exchange rates of
India, South Africa and Japan. The operational profit to sales
ratio was 5.0% (previous year 5.6%).
Profit/(Loss)beforeTaxationTheprofitbeforetaxationinthecurrentyearisRs.64.8mn
ascomparedtotheprofitofRs51.0mnintheprevious
year.Thecurrentyear’sprofitofRs.64.8mnwasrecorded
afteramortizationofRs.6.3mnintangibleassets,Rs.13.2
mn of non- moving finished goods stocks and raw materials.
Thefinancecostdecreasedby62%fromRs.9.9mninthe
previousyeartoRs.3.7mninthecurrentfinancialyear.The
76SamSon international PlC annual report 2013/14
CompanywasabletoearnagainofRs0.5mnfromthe
forward exchange contracts which commenced in the last
quarter.Wehopetoearnmoregainsfromforeignexchange
contracts in the coming years.
TaxationDuring the year, tax provision increased due to the deferred tax
adjustment.
2013/14 2012/2013
Rs. Rs.
Tax on profits of the year 4,535,269 3,042,594
Deferredtaxexpense/(Income) 3,955,316 (7,481,140)
Total 8,490,585 (4,438,546)
After the tax provision, the Company recorded a profit of
Rs56.3mninthecurrentyearasagainstRs.55.5mninthe
previous year.
RatiosThe gearing ratio in the current year is 6.8% as against 13.2%
inthepreviousyear.EarningspershareareRs.14.64inthe
currentyearasagainstRs.14.43inthepreviousyear.The
marketpriceasat31stMarch2014wasRs.88.20(lastyearRs
82.20).
Financial review (contd...)
InvestmentsDuringtheyear,theCompanyinvestedRs15mninaflash
lessautomatedVstrappress,Rs3mninamillandanother
Rs.2mninapressline.AnotherRs.1.5mnwasinvestedin
a water treatment plant. The company was able to invest in
Debentures,TreasuryBillsandFixeddepositsamountingtoRs.
50.3mninthefinancialyearunderreview.Wehaveplanned
toinvestanotherRs6mninnewsoftwareintheIFSsystemin
2014/15.
MarketCapitalizationThemarketcapitalizationoftheCompanywasRs.339.4mnat
theclosingpriceoftheshare,upfromRs.316.3mnrecorded
in the previous year. During the year under review, the highest
tradedpriceoftheCompany’ssharewasRs.105.00,whilethe
lowestpricewasRs.74.00.49,773sharesweretradedduring
theyearandthesharepriceclosedfortheyearatRs.88.20.
77SamSon international PlC annual report 2013/14
auDitOrsreport
TO THE SHAREHOLDERS OF SAMSON INTERNATIONAL PLC
ReportontheFinancialStatementsWehaveauditedtheaccompanyingfinancialstatementsof
Samson International PLC., which comprise the statement of
financialpositionasat31stMarch2014,andthestatements
of income, other comprehensive income, statement of changes
in equity and cash flow statement for the year then ended,
and summary of significant accounting policies and other
explanatory notes.
Management’sResponsibilityfortheFinancial Statements
Managementisresponsibleforthepreparationandfair
presentation of these financial statements in accordance with
Sri Lanka Accounting Standards. This responsibility includes;
designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether
due to fraud or error; selecting and applying appropriate
accounting policies, and making accounting estimates that are
reasonable in the circumstances.
Scope of Audit and Basis of Opinion Our responsibility is to express an opinion on these financial
statementsbasedonouraudit.Weconductedouraudit
in accordance with Sri Lanka Auditing Standards. Those
standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are free
from material misstatement.
An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management,
as well as evaluating the overall financial statement
presentation.
Wehaveobtainedalltheinformationandexplanationswhich
to the best of our knowledge and belief were necessary for
thepurposesofouraudit.Wethereforebelievethatouraudit
provides a reasonable basis for our opinion.
Opinion
In our opinion, so far as appears from our examination, the
company maintained proper accounting records for the year
endedMarch31,2014andthefinancialstatementsgiveatrue
andfairviewofthecompany’sStateofAffairsasatMarch
31, 2014 and its financial performance and cash flows for
the year then ended in accordance with Sri Lanka Accounting
Standards.
ReportonOtherLegalandRegulatoryRequirements
These financial statements also comply with the requirements
ofSection151(2)oftheCompaniesActNo07of
2007.
HLB Edirisinghe & Co.
Chartered Accountants
Colombo
1st August 2014
78SamSon international PlC annual report 2013/14
stateMentof comprehensive income
FOR THE YEAR ENDED 31ST MARCH 2014 2013
NOTES Rs. Rs.
Revenue 6 952,561,234 973,858,289
Costofsales (807,751,637) (824,008,726)
Gross Profit 144,809,597 149,849,563
Otherincome 7 2,282,319 1,749,323
Distributioncost (24,019,314) (24,801,170)
Administrativeexpenses (75,308,710) (72,737,442)
Operating Profit 8 47,763,892 54,060,274
Financeincome 9.1 20,856,704 6,916,633
Financecost 9.2 (3,780,035) (9,900,028)
Net Finance Income 17,076,669 (2,983,395)
Profitbeforeincometaxation 64,840,561 51,076,879
Income tax expense 10 (8,490,585) 4,438,546
Profit for the year 56,349,976 55,515,425
Other comprehensive income, net of tax - -
Total Comprehensive Income for the year, net of tax 56,349,976 55,515,425
Earnings per share - Basic 11 14.64 14.43
Dividends per share 12 2.00 2.00
Note: AllvaluesareinRupees,unlessotherwisestated.
Figures in brackets indicate deductions.
TheSignificantAccountingPoliciesandNotesonpages82to107areanintegralpartofthesefinancialstatements.
79SamSon international PlC annual report 2013/14
AS AT 31.03.2014 31.03.2013
ASSETS NOTES Rs. Rs.Non Current Assets Property,plantandequipment 13 172,218,635 174,449,120Intangibleassets 14 2,557,332 8,950,642Available for sale financial assets 15 21,354,300 - Other financial assets 16 29,000,000 -Deferredtaxassets 17 4,975,187 6,855,791 230,105,453 190,255,553Current Assets Inventories 18 125,296,412 143,785,662Trade and other receivables 19 229,125,850 226,059,880 Taxrecoverable 8,716,706 13,251,975Cashandcashequivalents 20 60,880,788 19,755,466 424,019,756 402,852,983Total Assets 654,125,209 593,108,536 EQUITY AND LIABILITIES Statedcapital 21 105,752,241 105,752,241General reserve 110,000,000 110,000,000 Retained earnings 233,806,250 185,152,222Total Equity 449,558,491 400,904,463 Non- Current Liabilities Deferredtaxliability 17 10,905,774 8,831,062Retirementbenefitobligation 22 15,129,866 14,528,107 26,035,640 23,359,169 Current Liabilities Tradeandotherpayables 23 145,688,020 108,040,574Short term borrowings 24 32,843,058 60,804,330 178,531,078 168,844,904Total Liabilities 204,566,718 192,204,073Total Equity And Liabilities 654,125,209 593,108,536
IcertifythataboveFinancialStatementscomplywiththerequirementsofCompaniesActNo.07of2007.
T. P. Kahanda Gamage Head of Finance The Board of Directors are responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board,
D. K. Rajapaksa D. G. P. S. Abeygunawardana ManagingDirector Director/GeneralManager TheSignificantAccountingPoliciesandNotesonpages82to107areanintegralpartofthesefinancialstatements. Colombo 1st August 2014
stateMentof Financial position
80SamSon international PlC annual report 2013/14
stateMentof changes in equity
FOR THE YEAR ENDED 31ST MARCH 2014
Stated General Retained
Capital Reserve Earnings Total
Rs. Rs. Rs. Rs.
Restated Balance as at 1st April 2012 105,752,241 110,000,000 137,332,745 353,084,986
Profit for the year - - 55,515,425 55,515,425
Other Comprehensive Income - - - -
Total Comprehensive Income for the year - - 55,515,425 55,515,425
Transactions with equity holders
DividendsPaid - - (7,695,948) (7,695,948)
Balance as at 31st March 2013 105,752,241 110,000,000 185,152,222 400,904,463
Profitfortheyear - - 56,349,976 56,349,976
Other Comprehensive Income - - - -
Total Comprehensive Income for the year - - 56,349,976 56,349,976
Transactions with equity holders
DividendsPaid - - (7,695,948) (7,695,948)
Balance as at 31st March 2014 105,752,241 110,000,000 233,806,250 449,558,491
Note:ThepurposeoftheGeneralreserveistoutilizeinfutureinvestmentsandexpansions.
Note: AllvaluesareinRupees,unlessotherwisestated.
Figures in brackets indicate deductions.
TheSignificantAccountingPoliciesandNotesonpages82to107areanintegralpartofthesefinancialstatements.
81SamSon international PlC annual report 2013/14
stateMentof cash Flows
FOR THE YEAR ENDED 31ST MARCH 2014 2013
NOTES Rs. Rs.
CASH FLOW FROM OPERATING ACTIVITIES Profit /(Loss) before taxation 64,840,561 51,076,879 Adjustment for : Depreciation 13 27,768,868 26,526,938 Amortizationofintangibleassets 6,393,310 1,278,660 (Profit)/Lossondisposalofproperty,plant&equipment (331,681) (1,166,071) (Profit)/Lossonscrappingplant&equipment - 109,382 Increaseinretirementbenefitobligation 22 1,539,613 7,673,597 Financeincome 9.1 (20,856,704) (6,916,633) Financecost 9.2 3,780,035 9,900,028 Profit Before Working Capital Changes 83,134,002 88,482,780 (Increase)/decreaseininventories 18,489,250 (18,645,717) (Increase)/decreaseintrade&otherreceivable (3,065,970) (16,127,420) Increase/(decrease)intrade&otherpayable 37,647,447 (35,925,069) Cash generated from operations 136,204,729 17,784,574 Interestpaid 9.2 (3,780,035) (9,900,028) Incometaxpaid - (1,594,745) Retiringgratuitypaid 22 (937,855) (3,051,511)Net cash generated from operating activities 131,486,839 3,238,291 CASH FLOW FROM INVESTING ACTIVITIES Purchaseofproperty,plantandequipment 13 (25,856,701) (20,118,377) Investment in debentures (21,354,300) - Investment in treasury bills (10,000,000) - Investment in fixed deposits (19,000,000) Interestincome 9.1 20,856,704 6,916,633 Proceedsfromsaleofproperty,plant&equipment 650,000 2,366,071Net cash used in investing activities (54,704,297) (10,835,673)CASH FLOW FROM FINANCING ACTIVITIES Dividendpaid (7,695,948) (7,695,948) Proceedsfromshorttermborrowings 24 161,650,914 160,977,140 Repaymentofshorttermborrowings 24 (177,273,998) (128,304,333)
Net cash used in financing activities (23,319,032) 24,976,859Net (decrease) / increase in cash and cash equivalents 53,463,510 17,379,477Cash and cash equivalents at the beginning of the year 4,236,943 (13,142,534)Cash and Cash equivalents at the end of the year 20 57,700,453 4,236,943
Note: AllvaluesareinRupees,unlessotherwisestated. Figures in brackets indicate deductions. TheSignificantAccountingPoliciesandNotesonpages82to107areanintegralpartofthesefinancialstatements. 1st August 2014
82SamSon international PlC annual report 2013/14
nOtesto the Financial statements
1. General Information
1.1 General
The Company is a public limited liability company
incorporated and domiciled in Sri Lanka. The address of
itsregisteredofficeisNo.110,KumaranRatnamRoad,
Colombo 02 and the principle place of business is
situatedatAkuressaRoad,Bogahagoda,Angulugaha,
Galle.
1.2 Principal Activities and Nature of Operations
During the year, the principal activities of the Company
were manufacture and export of unhardened rubber
products to the international and local markets.
1.3 Parent Enterprise & Ultimate Parent Enterprise
The Company’s parent undertaking is DSI Samson
Group(Pvt)Ltdwhichholdseffectively55.79%of
shares of Samson International PLC collectively inclusive
of Company holding.
1.4 Approval of Financial Statements
These financial statements have been approved for
issue by the Board of Directors on 1st August 2014
1.5 Number of Employees
The total number of employees stod at 324 as at 31st
March2014.(302asat31stMarch2013)
2. Basis of Preparation
2.1. Statement of Compliance
The Company prepares the financial statements in
accordance with the Sri Lanka Accounting Standards
(LKAS&SLFRS)issuedbytheInstituteofChartered
Accountants of Sri Lanka and the requirements of
theCompaniesActNo.07of2007andSriLanka
AccountingandAuditingStandardsActNo.15of
1995.
2.2. Basis of Measurement
The financial statements have been prepared on the
historical cost basis, except that the retirement benefit
obligations are measured at the present value of the
defined benefit plans as explained in the respective
notes to the financial statements.
2.2.1 Going concern
The Directors have made an assessment of the
Company’s ability to continue as a going concern in
the foreseeable future and they do not foresee a need
for liquidation or cessation of trading. Therefore, the
financial statements continued to be prepared on the
going concern basis
2.3. Functional and Presentation Currency
The Financial Statements are presented in Sri Lankan
RupeeswhichistheCompany’sfunctionalcurrency.
2.4. Use of Estimates and Judgments
The preparation of financial statements in conformity
withSLFRSrequiresmanagementtomakejudgments,
estimates and assumptions that affect the application
of accounting policies and the reported amounts of
assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses
during the reporting period. Although the judgments
and estimates are based on management’s best
knowledge of the current events and actions, actual
results may ultimately differ from those estimates. It
also requires management to exercise its judgment
in the process of applying the company’s accounting
policies.
83SamSon international PlC annual report 2013/14
Information about critical estimates and judgments
in applying accounting policies that have the most
significanteffectontheamountsrecognizedinthe
financialstatementsisprovidedinNote04.
3. Significant Accounting Policies
The accounting policies set out below have been
applied consistently to all periods presented in these
financial statements of the company
3.1. Foreign Currency
3.1.1. Foreign Currency Transactions
In preparing the Financial Statements of the individual
entities, transactions in currencies other than the
entity’s functional currency (foreign currencies)
are recorded in the functional currencies using
the exchange rates prevailing at the dates of the
transactions.
At each reporting date, monetary items denominated
in foreign currencies are translated at the closing rate.
Exchange differences arising on the settlement of
monetary items, and on the translation of monetary
items, are included in profit or loss for the period.
3.2. Assets and the Bases of their Valuation
Assets classified as current assets in the Statement of
Financial Position are cash, bank balances and those
whichareexpectedtoberealizedincash,duringthe
normal operating cycle of the Company’s business, or
within one year from the reporting date, whichever
is shorter. Assets other than current assets are those
which the Company intends to hold beyond a period
of one year from the reporting date.
3.2.1. Property, Plant and Equipment
3.2.1.1. Recognition and Measurement
Property, Plant and Equipment are stated at cost less
accumulated depreciation and accumulated impairment
losses.
All property, plant and equipment are stated at
historical cost less depreciation. Historical cost
includes expenditure that is directly attributable to the
acquisition of the items.
Wherethecarryingamountofanassetisgreaterthan
its estimated recoverable amount, it is written down
immediately to its recoverable amount.
3.2.1.2. Subsequent Costs
The cost of replacing part of an item of property, plant
andequipmentisrecognizedinthecarryingamount
of the item if it is probable that the future economic
benefits embodied within the part will flow to the
company and its cost can be measured reliably. The
carryingamountofthereplacedpartisderecognized.
3.2.1.3. Derecognition
The carrying amount of an item of property, plant and
equipmentisderecognizedondisposalorwhenno
future economic benefits are expected from its use
or disposal. Gains or losses on derecognition of the
asset are determined by comparing the proceeds from
disposalwiththecarryingamountofproperty,plant&
equipmentandarerecognizedwithinotherincomein
the statement of comprehensive income.
3.2.1.4. Depreciation
Depreciation is calculated over the depreciable
amount, which is the cost of an asset, or other amount
substituted for cost, less its residual value.
Depreciationisrecognizedinprofitorlossonastraight
line basis over the estimated useful lives of each
part of an item of property, plant and equipment,
since this most closely reflects the expected pattern
of consumption of the future economic benefits
embodied in the asset. Leased assets are depreciated
over the shorter of the lease term and their useful lives
unless it is reasonably certain that the company will
obtain ownership by the end of the lease term. Land is
not depreciated.
nOtes to the Financial statements (contd...)
84SamSon international PlC annual report 2013/14
Theestimatedusefullivesareasfollows:
Asset Category Useful Life Depreciation
(Years) Rate (%)
Buildings 20 5%
Storage Tank 10 10%
Plant&Machinery 10 10%
MachineAccessories 10 10%
Furniture and Fittings 10 10%
Office Equipment 10 10%
MotorVehicles 5 20%
Depreciation of an asset begins when it is available for
use where as depreciation of an asset ceases at the
earlier of the date that the asset is classified as held for
saleandthedatethattheassetisderecognized.
Depreciation method, useful lives and residual values
are reviewed at each financial year end and adjusted if
appropriate.
3.2.2. Intangible Assets
3.2.2.1. Software
All computer software cost incurred, which are not
internally related to associate hardware, which can be
clearly identified, reliably measured and it is probable
that they will lead to future economic benefits, are
included in the Statement of Financial Position under
the category of intangible assets.
Intangible assets acquired separately are measured on
initial recognition at cost.
Following initial recognition, intangible assets are
carried at cost less accumulated amortisation and
accumulated impairment losses, if any.
3.2.2.2 Subsequent Expenditure
Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure
isrecognizedinprofitorlossasincurred.
3.2.2.3. Amortisation
Amortizationiscalculatedoverthecostoftheasset,
or other amount substituted for cost, less its residual
value.
Amortizationisrecognizedintheprofitorlossona
straight line basis over the estimated useful lives of
intangible assets, other than goodwill, from the date
that they are available for use, since this most closely
reflects the expected pattern of consumption of the
future economic benefits embodied in the asset. The
estimated useful life has been re-estimated to 5 years
instead of the previous estimate of 10 years which is
shownbelow:
Category Useful Depreciation Useful
of Asset Life (Years) Rate (%) Life (Years)
Re-estimated up to 2012/13
ERPComputer
Software 5 20% 10
Amortisation methods, useful lives and residual values
are reviewed at each financial year end and adjusted if
appropriate.
Changes in the expected useful life or the expected
pattern of consumption of future economic benefits
embodied in the asset is accounted for by changing the
amortisation period or method, as appropriate, and are
treated as changes in accounting estimates.
3.2.2.4 Derecognising
Gains or losses arising from derecognising of an
intangible assest are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognised in the income
statement when the asset is derecognised.
3.2.3 Impairment of non-financial assets
Assets that have an indefinite useful life are not
subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are
reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable
nOtes to the Financial statements (contd...)
85SamSon international PlC annual report 2013/14
amount is the higher of an asset’s fair value less costs
to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash flows
(cash-generatingunits).Non-financialassetsotherthan
goodwill that suffered impairment are reviewed for
possible reversal of the impairment at each reporting
date.
3.2.4. Inventories
Inventories are measured at the lower of cost and net
realizablevalue.
Costs incurred in bringing each product to its present
locationandconditionareaccountedforasfollows:
a) All inventory items except manufactured
inventories and work-in-progress are measured
using first in, first out basis.
b) Manufacturedinventoriesandwork-in-progressare
measured at weighted average factory cost which
includes all direct expenditure and appropriate
shares of production overhead based on normal
operating capacity but exluding borrowing costs.
Netrealisablevalueistheestimatedsellingpricein
the ordinary course of business, less the estimated
costs of completion and the estimated costs
necessary to make the sale.
3.2.4.1 Allowance for Impairment
All inventory items are tested for impairment
periodically.
3.2.5. Trade Receivables
3.2.5.1. Recognition and Measurement
Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course
of business. If collection is expected in one year or less
(or in the normal operating cycle of the business if
longer), they are classified as current assets. If not, they
are presented as non-current assets.
3.2.5.2. Provision for Impairment
Trade receivables are recognised initially at fair value
and subsequently measured at amortised cost using the
effective interest method, less provision for impairment.
A provision for impairment of trade receivables is
established when there is objective evidence that
the Company will not be able to collect all amounts
due according to the original terms of receivables.
Significant financial difficulties of the debtor, probability
that the debtor will enter bankruptcy or financial
reorganisation, and default or delinquency in payments
are considered indicators that the trade receivable is
impaired. The amount of the provision is the difference
between the asset’s carrying amount and the present
value of estimated future cash flows, discounted at the
original effective interest rate.
The carrying amount of the asset is reduced
through the use of an allowance account, and the
amount of the loss is recognised in the statement of
comprehensive income.
3.2.5.3. Trade Receivables Write Off
Whenatradereceivableisuncollectible,itiswritten
off against the allowance account for trade receivables.
Subsequent recoveries of amounts previously written
off are credited against distribution expenses in the
statement of comprehensive income.
3.2.6. Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances, call
deposits, demand deposits, and short term highly liquid
investments readily convertible to known amounts
of cash and subject to insignificant risk of changes
in value net of bank overdrafts that are repayable on
demand for the purpose of the Statement of Cash
Flows.
3.3. Financial Instruments
3.3.1. Financial Assets
3.3.1.1. Initial Recognition and Measurement
FinancialassetswithinthescopeofLKAS39are
classified as financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity
investments or available-for-sale financial assets, as
appropriate. The Company determines the classification
of its financial assets at initial recognition. All financial
assets are recognised initially at fair value plus, in the
nOtes to the Financial statements (contd...)
86SamSon international PlC annual report 2013/14
case of assets not at fair value through profit or loss,
directly attributable transaction costs. Purchases or sales
of financial assets that require delivery of assets within
a time frame established by regulation or convention in
the market place (regular way trades) are recognised on
the trade date, i.e., the date that the company commits
to purchase or sell the asset.
The company’s financial assets include cash and short
term deposits, trade and other receivables, loans and
other receivables and other financial assets.
3.3.1.2. Subsequent Measurement
The subsequent measurement of financial assets
dependsontheirclassificationasfollows:
Financial assets at fair value through profit and
loss
Financial assets at fair value through profit and loss
include financial assets designated as such at fair value
through profit or loss at initial recognition. Financial
assets are classified as held for trading if they are
acquired for the purpose of selling in the near term.
Subsequent to initial recognition, financial assets at
fair value through profit loss are carried at fair value
in the statement of financial position with fair value
gainsorlossesrecognizedthroughtheStatementof
Comprehensive Income.
The company did not have any financial assets classified
asfairvaluethroughprofitorlossasat31stMarch
2014.
Available-for-Sale Financial Investments
Available-for-sale financial investments include equity
and debt securities. Equity investments classified as
available-for-sale are those, which are neither classified
as held for trading nor designated at fair value through
profit or loss. Debt securities in this category are those
which are intended to be held for an indefinite period
of time and which may be sold in response to needs
for liquidity or in response to changes in the market
conditions.
After initial measurement, available-for-sale financial
investments are subsequently measured at fair value
with unrealised gains or losses recognised as other
comprehensive income in the available-for-sale reserve
until the investment is derecognised, at which time the
cumulative gain or loss is recognised in other operating
income, or determined to be impaired, at which time
the cumulative loss is reclassified to the statement of
comprehensive income in finance costs and removed
from the available-for-sale reserve. Interest income on
available-for-sale debt securities is calculated using the
effective interest method and is recognised in profit or
loss.
The Company evaluates its available-for-sale financial
assets to determine whether the ability and intention
tosellthemintheneartermisstillappropriate.When
the Company is unable to trade these financial assets
due to inactive markets and management’s intention
to do so significantly changes in the foreseeable future,
the Company may elect to reclassify these financial
assetsinrarecircumstances.Reclassificationtoloans
and receivables is permitted when the financial assets
meet the definition of loans and receivables and the
Company has the intent and ability to hold these
assets for the foreseeable future or until maturity.
Reclassificationtotheheld-to-maturitycategoryis
permitted only when the entity has the ability and
intention to hold the financial asset accordingly.
For a financial asset reclassified out of the available-for
sale category, any previous gain or loss on that asset
that has been recognised in equity is amortised to profit
or loss over the remaining life of the investment using
theEIR.Anydifferencebetweenthenewamortised
cost and the expected cash flows is also amortised over
theremaininglifeoftheassetusingtheEIR(Efective
InterestRate).Iftheassetissubsequentlydetermined
to be impaired, then the amount recorded in equity is
reclassified to the statement of comprehensive income.
Held-to-maturity Investments
Non-derivativefinancialassetswithfixedor
determinable payments and fixed maturities are
classified as held-to-maturity when the Company
has the positive intention and ability to hold them to
maturity.
After initial measurement, held-to-maturity investments
are measured at amortised cost using the effective
nOtes to the Financial statements (contd...)
87SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
interest method, less impairment. Amortised cost is
calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integralpartoftheEIR.TheEIRamortisationisincluded
in finance income in the statement of comprehensive
income. The losses arising from impairment are
recognised in the statement of comprehensive income
in finance costs.
The company did not have any financial assets classified
asheldtomaturityinvestmentsasat31stMarch
2014.
Loans and Receivables
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not
quoted in an active market. After initial measurement,
such financial assets are subsequently measured at
amortised cost using the effective interest rate method
(EIR),lessimpairment.Amortisedcostiscalculated
by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of
theEIR.TheEIRamortisationisincludedunderfinance
income in the statement of comprehensive income.
The losses arising from impairment are recognised in
the statement of comprehensive income under finance
costs.
3.3.1.3. Derecognition
A financial asset (or, where applicable a part of a
financial asset or part of a group of similar financial
assets)isderecognisedwhen:
• Therightstoreceivecashflowsfromtheassethave
expired
• TheCompanyhastransferreditsrightstoreceive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
‘pass-through arrangement; and either
(a) The Company has transferred substantially all
the risks and rewards of the asset, or
(b) The Company has neither transferred nor
retained substantially all the risks and rewards
of the asset, but has transferred control of the
asset.
On derecognition of a financial asset, the difference
between the carrying amount of the asset (or the
carrying amount allocated to the portion of the asset
transferred), and the sum of (i) the consideration
received (including any new asset obtained less any
new liability assumed) and (ii) cumulative gain or loss
thathadbeenrecognizedinothercomprehensive
incomeisrecognizedinprofitorloss.
3.3.2. Impairment of Financial Assets
The Company assesses at each reporting date whether
there is any objective evidence that a financial asset or
a group of financial assets is impaired. A financial asset
or a group of financial assets is deemed to be impaired
if, and only if, there is objective evidence of impairment
as a result of one or more events that has occurred
after the initial recognition of the asset (an incurred
‘loss event’) and that loss event has an impact on the
estimated future cash flows of the financial asset or the
group of financial assets that can be reliably estimated.
3.3.3. Financial Liabilities
3.3.3.1. Initial Recognition and Measurement
FinancialliabilitieswithinthescopeofLKAS39are
classified as financial liabilities at fair value through
profit or loss, loans and borrowings, as appropriate.
The Company determines the classification of its
financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value
plus, in the case of loans and borrowings, transaction
costs that are directly attributable to the acquisition or
issue of such financial liability.
The company’s financial liabilities include trade and
other payables, bank overdrafts, loans and borrowings,
financial guarantee contracts, and derivative financial
instruments.
3.3.3.2. Subsequent Measurement
Financial liabilities at fair value through profit or
loss
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
88SamSon international PlC annual report 2013/14
liabilities designated upon initial recognition at fair
value through profit or loss.
Financial liabilities are classified as held for trading
if they are acquired for the purpose of selling in the
near term. This category includes derivative financial
instruments entered into by the Company that are
not designated as hedging instruments in hedge
relationshipsasdefinedbyLKAS39.
Gains or losses on liabilities held for trading are
recognised in the statement of comprehensive income.
The Company has not designated any financial
liabilities upon initial recognition as fair value through
profit or loss.
Loans and Borrowings
After initial recognition, interest bearing loans and
borrowings are subsequently measured at amortised
cost using the effective interest rate method unless the
effect of discounting would be insignificant in which
case they are stated at cost.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
orcoststhatareanintegralpartoftheEIR.The
EIRamortisationisincludedinfinancecostsinthe
statement of comprehensive income.
3.3.3.3 Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
3.4. Post Employment Benefits
3.4.1. Defined Benefit Plan
Defined benefit plans are post-employment benefit
plans other than defined contribution plans. The
liabilityrecognizedinthestatementoffinancial
position in respect of defined benefit plan is the present
value of the defined benefit obligation at he reporting
date. The defined benefit obligation is calculated using
the“ProjectedUnitCreditMethod”.
Pastservicecostsarerecognizedimmediatelyinthe
profit or loss while the actuarial gains and losses are
charged or credited to profit or loss in the period in
which they arise. The liability is not externally funded.
3.4.2. Defined Contribution Plans – Employees’
Provident Fund and Employee Trust Fund
All employees who are eligible for Employees’ Provident
Fund Contributions and Employees’ Trust Fund
Contributions are covered by relevant contributions
funds in line with the relevant statutes. Employer’s
contributions to the defined contribution plans are
recognizedasanexpenseinprofitorlosswhen
incurred.
3.5 Stated Capital
Stated capital consists solely of ordinary share capital.
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of
new shares are shown as a deduction, net of tax, in
equity from the proceeds.
3.6 Provisions
Aprovisionisrecognizedif,asaresultofapastevent
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefit will be
required to settle the obligation.
3.7. Statement of Comprehensive Income
3.7.1. Revenue
3.7.1.1. Revenue Recognition
Revenueisrecognizedtotheextentthatitisprobable
that the economic benefits will flow to the Company
and the revenue and the associated costs incurred or
tobeincurredcanbereliablymeasured.Revenueis
measured at the fair value of the consideration received
or receivable, net of trade discounts and sales taxes,
and after eliminating sales within the Company. The
following specific criteria are used for the purpose of
recognition of revenue.
3.7.1.1.1 Sale of Goods
Revenuefromthesaleofgoodsisrecognizedwhenthe
significant risks and rewards of ownership of the goods
have passed to the buyer, usually on delivery of the
goods.
nOtes to the Financial statements (contd...)
89SamSon international PlC annual report 2013/14
3.7.1.1.2. Other Income
Interest Income
For all financial instruments measured at amortised
cost and interest bearing financial assets classified
as available-for-sale, interest income or expense is
recordedusingtheeffectiveinterestrate(EIR),which
is the rate that exactly discounts the estimated future
cash payments or receipts through the expected life
of the financial instrument or a shorter period, where
appropriate, to the net carrying amount of the financial
asset or liability. Interest income is included in finance
income in the statement of comprehensive income.
3.7.2. Expenditure Recognition
3.7.2.1. Operating Expenses
All expenses incurred in day to day operations of the
business and in maintaining the property, plant and
equipment in a state of efficiency has been charged to
the statement of comprehensive income in arriving at
the profit for the year. Provision has also been made
for impairment of financial assets, slow moving stocks,
all known liabilities and depreciation on property, plant
and equipment.
3.7.2.2. Borrowing Costs
Borrowing costs directly attributable to acquisition,
construction or production of assets that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost
of the respective assets. All other borrowing costs are
expensed in the period they occur. Borrowing costs
consist of interest and other costs that Company incurs
in connection with the borrowing of funds.
3.7.3. Net Finance Income
Finance costs comprise interest expense on borrowings,
unwinding of the discount on provisions, changes in
the fair value of financial assets at fair value through
profitorloss,impairmentlossesrecognizedonfinancial
assets, borrowing costs that are not directly attributable
to the acquisition, construction or production of a
qualifying asset are recognised in profit or loss using
the effective interest method.
3.7.4. Taxation
3.7.4.1. Current Taxes
Current Income tax liabilities for the current and prior
periods are measured at the amount expected to be
recovered from or paid to the Commissioner General
ofInlandRevenue.Thetaxratesandtaxlawsusedto
compute the amount are those that are enacted or
substantively enacted by the reporting date.
The provision for income tax on Sri Lankan operation
is based on the elements of income and expenditures
reported in the Financial Statements and computed
with in accordance with the provisions of the Inland
RevenueAct.
The relevant details are disclosed in the respective notes
to the Financial Statements.
3.7.4.2. Deferred Taxation
Deferred taxation is provided, using the liability
method, on all temporary differences at the reporting
date between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes.
Deferred tax assets are recognised for all deductible
temporary differences, carry forward of unused tax
losses and unused tax credits to the extent that it is
probable that future taxable profits will be available
against which the deductible temporary differences
andcarryforwardofunusedtaxlosses/creditscanbe
utilised.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that the related tax benefit will
be realised.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply to the year when
theassetisrealizedortheliabilityissettled,based
on tax rates (and tax laws) that have been enacted or
substantively enacted as at the reporting date.
Deferred tax assets and deferred tax liabilities are offset
if legally enforceable right exists to set off current
tax assets against current tax liabilities and when the
deferred taxes relate to the same taxable entity and the
same taxation authority.
nOtes to the Financial statements (contd...)
90SamSon international PlC annual report 2013/14
3.8. Related Party Transactions
Disclosure has been made in respect of the transactions
in which one party has the ability to control or exercise
significant influence over the financial and operating
policies/decisionsoftheother,irrespectiveofwhethera
price is being charged or not.
The relevant details are disclosed in the respective notes
to the Financial Statements.
3.9. Cash Flow
Interest received and dividends received are classified as
investing cash flows, while dividend paid and interest
paid, is classified as financing cash flows for the
purpose of presentation of Statement of Cash Flows
whichhasbeenpreparedusingthe‘IndirectMethod’.
3.10. Earnings Per Share
Basic EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Company
by the weighted average number of shares outstanding
during the period.
3.11. Events Occurring after the Reporting Period
Events after the reporting period are those events
favourable and unfavourable, that occur between
the end of the reporting period and the date when
thefinancialstatementsareauthorizedforissue.The
materiality of the events occurring after the reporting
period is considered and appropriate adjustments to or
disclosures are made in the Financial Statements, where
necessary.
3.12. New Accounting Standards issued but not yet
effective
There are a number of new Accounting Standards,
amendments to standards, which have been issued
butnotyeteffectiveasattheReportingdatehavenot
been applied in preparing these Financial Statements.
Thecompanywilladoptthefollowingnew/revised
Accounting Standards which will be effective from 01st
April 2015. Accordingly these Accounting Standards
have not been applied in preparing these Financial
Statements.
SLFRS9-FinancialInstruments
SLFRS13-FairValueMeasurement
Sri Lanka Accounting Standard- SLFRS 9 ‘Financial
Instruments’
The objective of this Accounting Standard is to
establish principles for the financial reporting of
financial assets and financial liabilities that will present
relevant and useful information to users of financial
statements for their assessment of the amounts, timing
and uncertainty of an entity’s future cash flows.
AnentityshallapplythisSLFRStoallitemswithinthe
scopeofLKAS39‘FinancialInstruments:Recognition
andMeasurement’.
The effective date of this Accounting Standard
has been deferred as at the date of these financial
statements.
Sri Lanka Accounting Standard- SLFRS 13 ‘Fair
Value measurement’
This Accounting Standard defines fair value, sets out in
asingleSLFRSaframeworkformeasuringfairvalue;
and requires disclosures abut fair value measurements.
ThisSLFRSwillbecomeeffectivefrom01stJanuary
2014 and shall be applied prospectively as of the
beginning of the annual period in which it is initially
applied.TheDisclosurerequirementsofthisSLFRSneed
not to be applied comparative information provided for
periodsbeforeinitialapplicationofthisSLFRS.
In addition to the above, following standards will also
be effective for annual periods commencing on or after
01st January 2014.
SLFRS10-ConsolidatedFinancialStatements
SLFRS11-JointArrangements
SLFRS12-DisclosureofInterestsinOtherEntities
The above three standards will impact the recognition,
measurement and disclosures aspects currently
containedinLKAS27-Consolidatedandseparate
financialstatements,LKAS28-Investmentsin
associates,LKAS31-InterestinjointventuresandSIC-
12 and SIC 13 which are on consolidation of special
purpose entities(SPEs) and jointly controlled entities
respectively.
nOtes to the Financial statements (contd...)
91SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
Establishing a single control model that applies to
all entities including Special Purpose Entities and
removal of the option to proportionate consolidation
jointly controlled entities are the significant changes
introducedunderSLFRS10andSLFRS11respectively.
SLFRS12,establishesasinglestandardondisclosures
related to interests in other entities. This incorporates
new disclosures as well as disclosures currently required
underLKAS27,LKAS28andLKAS31.
Based on the preliminary analysis performed, the above
Standards on adoption are not expected to have any
material impact on the financial statements.
3.13. Segment Reporting
Segment information is provided for for the different
business segments of the company. Business
segmentation has been determined based on the
nature of goods provided by the company after
considering the risks and rewards of each type of
product.
The activities of the segments are described in note 28
to the financial statements.
4. Critical Accounting Estimates, Assumptions and Judgments
Estimates, assumptions and judgments are continually
evaluated and are based on historical experience
and other factors, including expectations of future
events that are believed to be reasonable under the
circumstances. The Company makes estimates and
assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom
equal the related actual results. The estimates and
assumptions that have a significant risk of causing
a material adjustment to the carrying amount of
assets and liabilities within the next financial year are
discussed below.
4.1 Estimated Useful lives of Property, Plant and
Equipment (PPE)
The Company reviews annually the estimated useful
lives of PPE based on factors such as business plan
and strategies, expected level of usage and future
developments. Future results of operations could be
materially affected by changes in these estimates
brought about by changes in the factors mentioned.
A reduction in the estimated useful lives of PPE would
increase the recorded depreciation charge and decrease
the PPE balance.
4.2 Estimated Useful lives of Intangible Assets
The Company reviews annually the estimated useful
lives of intangible assets based on factors such as
business plan and strategies, expected level of usage
and future developments. Future results of operations
could be materially affected by changes in these
estimates brought about by changes in the factors
mentioned. A reduction in the estimated useful lives
of intangible assets would increase the recorded
amortizationchargeanddecreasetheintableassets
balance.
4.3 Defined Benefit Obligations
The present value of the gratuity obligations depends
on a number of factors that are determined on an
actuarial basis using a number of assumptions. The
assumptions used in determining the net cost for
gratuity include the discount rate. Any changes in
these assumptions will impact the carrying amount of
gratuity obligations.
The Company determines the appropriate discount
rate at the end of each year. This is the interest rate
that should be used to determine the present value of
estimated future cash outflows expected to be required
to settle the pension obligations. In determining the
appropriate discount rate, the Company considers
the interest rates of government bonds that are
denominated in the currency in which the benefits will
be paid and that have terms to maturity approximating
the terms of the related pension obligation.
4.4 Allowance for Doubtful Debts
The Company assesses at the reporting date whether
there is objective evidence that trade receivables have
been impaired. Impairment loss is calculated based on
a review of the current status of existing receivables
and historical collections experience. Such provisions
are adjusted periodically to reflect the actual and
anticipated impairment.
92SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
Risk Exposure Risk exposure Mitigating actions
5.1CreditRisk Riskarisingfromdefaultofpayment.Higher a)Followingstringentassessment
credit risk may adversely impact both liquidity procedures to ensure credit.
and profitability.
b) Developing and implementing
Credit Policies.
c) Obtaining bank guarantees, deposits,
post dated cheques from local
debtors and insurance cover for
export debtors whenever there is a
doubt about recovery.
d) Closely monitoring the debtor
balances and laying action plans
accordingly.
5.2OperationalprocessRisk Internalprocessfailures,frauds, a) Outsourceinternalaudittoareputed
pilferages and breakdowns of internal controls audit firm to review and report on
the adequacy of the financial and
operational controls to Audit
CommitteeandManagingDirector.
b) Systems and procedures are in
place to ensure compliance with
internal controls, which are monitored
and reviewed for their continued
efficiency and effectiveness.
c) Provide focused and structured
training to staff at all levels to
familiarizethemwithprocessesand
procedures.
d) Carrying out mandatory preventive
maintenance programmes.
e) The Company sources its products
and services from approved suppliers.
5. FinancialRiskManagement
93SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
Risk Exposure Risk exposure Mitigating actions
5.3 Financing and Interest Inability to satisfy debt repayments and obtain the a) To have adequate facilities in
rate risk best interest rates. obtaining USD loans and
borrowings in foreign currency
to bring down finance charges.
b) Funding of long-term assets through
equity and Long-term loans.
c) To have adequate short-term
borrowing facilities available at all
times.
d) Low gearing is maintained.
5.4 Foreign Exchange Depreciation of the rupee value and loss on a) Exchange rate movements are taken
rateRisk exchangeinconversioninrelationtoexport intoconsiderationbefore
proceeds,importpaymentsandforeigncurrency conversion&pricing.
debt transactions.
b) Practising effective hedging
techniques.
c) Continuous evaluation of the impact
of Central Bank regulations.
5.5ProjectManagement Newprojects/Capitalexpendituresinvolvehigh a) ConductaPESTELanalysis
Risks risksanduncertaintiesintermsofdelayand andfeasibilitystudybefore
cost overruns. Failure of major projects will initiating the projects.
affect profitability, capital structure and reputation.
b) Board approval should be received for
all investments.
c) Post-evaluation of the projects is
carried out for each investment.
94SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
FOR THE YEAR ENDED 31ST MARCH 2014 2013
NOTES Rs. Rs.
06. Revenue Saleofgoods 6.1 952,561,234 973,858,289
952,561,234 973,858,289
6.1 Sale of Goods
ExportTurnover 613,250,076 656,041,490
LocalTurnover 339,311,158 317,816,799
952,561,234 973,858,289
07. OtherIncome
Profitondisposalofproperty,plant&equipment 331,681 1,166,071
Income from cultivation - 5,259
Reversalofoverprovidedexpenses 11,290
Creditors’dueswrittenback 1,877,601 -
Reversalofinventoryimpairementprovision 61,747 577,993
2,282,319 1,749,323
08. ExpensesbyNature
Costofpurchase 514,837,534 569,154,015
Employee benefit expenses 8.1 131,108,188 112,128,990
Otheroverheads 74,508,706 66,488,300
Depreciation 27,768,868 26,526,938
Export expenses 13,068,204 14,132,366
Machinerymaintenance 14,514,517 8,495,804
Subcontractwages 11,552,748 7,829,757
Auditors remuneration - Assurance services 242,300 230,000
Auditorsremuneration-Non-Assuranceservices 40,600 35,200
Others 119,437,996 116,525,968
Total Cost of Purchase, Distribution and Administrative Expenses 907,079,661 921,547,338
8.1 Employee Benefit Expenses
Director’semoluments 8,376,395 8,057,196
Bonus&otherallowances 1,437,254 1,252,102
Salaries,wages&overtime 111,288,432 92,508,653
Post employment benefit - gratuity 692,826 1,918,399
EPF&ETF 9,313,281 8,392,640
131,108,188 112,128,990
95SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
FOR THE YEAR ENDED 31ST MARCH 2014 2013
NOTES Rs. Rs.
9. NetFinanceIncome 9.1 Finance Income
InterestIncome 3,086,413 726,762
ForeignExchangeGain 17,770,291 6,189,871
20,856,704 6,916,633
9.2 Finance Cost
InterestExpensesOnBankBorrowing 2,342,302 4,765,096
OverdraftInterest 1,437,733 5,134,932
3,780,035 9,900,028
Net Finance Income 17,076,669 (2,983,395)
10 Income Tax Expenses
Current Tax Expenses:
Current tax on profit for the year 10.1 4,353,651 3,034,498
(Over)/Underprovisioninpreviousyears 181,618 8,096
Deferred Tax Expenses:
Originationandreversaloftemporarydifferences 17 3,955,316 (7,481,140)
Income Tax Expenses in Statement of Comprehensive Income 8,490,585 (4,438,546)
10.1 Reconciliation between Current Tax Expenses and the Accounting Profits
Profit before tax 64,840,561 51,076,879
Tax effectsof:
–Totaldisallowableexpenses 36,796,434 38,189,332
–Totalallowableexpenses (49,550,123) (50,361,037)
Taxable income from ordinary activities 52,086,872 38,905,174
Tax loss claimed (18,230,405) (13,616,811)
Taxable income 33,856,467 25,288,363
Agricultural Income 10% - 526
Tax profitonexportsales 12% 3,844,619 3,033,972
Interest income 28% 509,032 -
Tax on profit for the year 4,353,651 3,034,498
96SamSon international PlC annual report 2013/14
FOR THE YEAR ENDED 31ST MARCH 2014 2013
NOTES Rs. Rs.
11. Earnings per Share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of
the company by the weighted average number of ordinary shares outstanding at year end.
Amount Used as the Numerator
Profitfortheyear 56,349,976 55,515,425
Profit attributable to equity holders of the company 56,349,976 55,515,425
Number of Ordinary Shares Used as the Denominator
Weightedaveragenumberofordinarysharesinissue 3,847,974 3,847,974
Weighted average number of ordinary shares for earnings per share 3,847,974 3,847,974
Basic Earnings per Share (Rs.Cts) 14.64 14.43
12. Dividend paid during the year
Amounts Used as Numerator
Dividendpaid 7,695,948 7,695,948
Number of Ordinary Shares Used as the Denominator
WeightedAverageNumberofOrdinarySharesinIssue 3,847,974 3,847,974
Dividend per Share (Rs. Cts.) 2.00 2.00
nOtes to the Financial statements (contd...)
97SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
13. Property, Plant and Equipment As At As At 01.04.2013 Additions Disposals 31.03.2014
COST/VALUATION Rs. Rs. Rs. Rs.
Freehold assets
Freehold land 3,190,105 - - 3,190,105
Buildings 90,594,322 - - 90,594,322
Storage tank 125,031 - - 125,031
Plantandmachinery 233,231,837 20,320,526 (228,000) 253,324,363
Machineaccessories 117,145,471 3,270,733 (300,000) 120,116,204
Furnitureandfittings 1,471,790 - - 1,471,790
Office equipment 13,952,118 338,483 - 14,290,601
Motorvehicles 3,282,668 - - 3,282,668
Sundryassets 11,535,367 396,959 - 11,932,326
Wastewatertreatmentplant-WIP - 1,530,000 - 1,530,000
Total 474,528,708 25,856,701 (528,000) 499,857,410
DEPRECIATION
Freehold assets
Freehold land - - - -
Buildings 39,159,991 4,726,349 - 43,886,340
Storage tank 125,031 - - 125,031
Plantandmachinery 161,726,941 13,804,163 (201,401) 175,329,703
Machineaccessories 77,412,056 7,151,674 (8,280) 84,555,450
Furnitureandfittings 599,285 111,550 - 710,835
Office equipment 9,431,185 1,038,460 - 10,469,645
Motorvehicles 2,857,669 199,558 - 3,057,227
Sundryassets 8,767,430 737,114 - 9,504,544
Wastewatertreatmentplant-WIP - - - -
Total 300,079,588 27,768,868 (209,681) 327,638,775
WRITTEN DOWN VALUE
Freehold assets
Freehold land 3,190,105 - - 3,190,105
Buildings 51,434,331 - - 46,707,982
Storage tank - - - -
Plantandmachinery 71,504,896 - - 77,994,660
Machineaccessories 39,733,415 - - 35,560,754
Furnitureandfittings 872,505 - - 760,955
Office equipment 4,520,933 - - 3,820,956
Motorvehicles 424,999 - - 225,441
Sundryassets 2,767,937 - - 2,427,782
Wastewatertreatmentplant-WIP - - - 1,530,000
Total 174,449,120 - - 172,218,635
98SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
13 (a) Fully Depreciated Property, Plant and Equipment
A class-wise analysis of the initial cost of fully depreciated property, plant and equipment of the company which are still in use as at
reporting date is as follows,
As at 31.03.2014
Rs.
Furniture&Fittings 410,828
MotorVehicle 2,432,668
OfficeEquipment 7,500,096
Plant&Machinery 101,298,352
Sundry Assets 5,248,051
Tools&Accessories 49,173,275
Total 166,063,270
(b) Temporarily idle property, plant and equipment
There were no property, plant and equipment idle from active use as at the reporting date.
(c) Property, plant and equipment retired from active use
There were no property, plant and equipment retired from active use as at the reporting date.
(d) Title restriction of property, plant and equipment
There were no restrictions on the title of property, plant and equipment as at the reporting date.
(e) Land holdings and Investment properties
ThevalueofofficeandfactorysituatedatAkuressaRoad,Bogahagoda,Angulugaha,Gallewasvaluedbyindependent
incorporatedvalueratavalueofRs.132mnasat29thAugust2009andthefactoryatNo:57B,IndustrialProcessingZone,
Nagoda,Kalutharawaspurchasedin2009/2010atthemarketvalueofRs.18,000,000/.
Location Address No. of Buildings Extent of land Extent of Building
Galle Factory AkuressaRoad, 10Buildings 7Acres2Roods& 94,900Sqft
Bogahagoda,Galle. 17Perches
Kalutara Factory No.57/B,Fullerton 03Buildings 120Perches 5,990Sqft
IndustrialZone,
Nagoda,Kalutara.
99SamSon international PlC annual report 2013/14
31.03.2014 31.03.2013
Rs. Rs.
14. Intangible Assets
Cost
Asat1April 12,786,626 12,786,626
Additions - -
As at 31 March 12,786,626 12,786,626
Amortisation
Asat1April 3,835,984 2,557,322
Chargefortheyear 6,393,310 1,278,662
As at 31 March 10,229,294 3,835,984
Net book value 2,557,332 8,950,642
Thecompanyhaschangeditsestimateregardingtheamortizationperiodofintangibleassetas5yearsinsteadofpreviousestimate
of10yearsduringtheyear2013/14.
nOtes to the Financial statements (contd...)
15. Available for Sale Financial Assets No of Market Market Value Market Value Quoted Debentures Debentures Price As at 31.03.2014 As at 31.03.2013
Rs. Rs. Rs.
Hayleys Plc 10,000 1,000 10,000,000 -
NationalDevelopmentBankPlc 50,200 100 5,020,000 -
HattonNationalBankPlc 63,343 100 6,334,300 -
Total 21,354,300
16. Other Financial Assets
Investment in treasury bills 10,000,000 -
Investment in fixed deposits 19,000,000 -
Total 29,000,000 -
17.DeferredIncomeTaxAssetsandLiabilities
17.1 - Deferred tax assets
Balanceatthebeginningoftheyear 6,855,791 1,952,274
Recognisedinprofit&loss (1,880,604) 4,903,517
Balance at the end of the year 4,975,187 6,855,791
17.2 - Deferred tax liabilities
Balanceatthebeginningoftheyear 8,831,062 11,408,687
Recognisedinprofit&loss 2,074,712 (2,577,625)
Balance at the end of the year 10,905,774 8,831,062
Net Deferred tax liabilities 5,930,587 1,975,271
100SamSon international PlC annual report 2013/14
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
18. Inventories
Rawmaterials 31,561,702 34,115,020
Work-in-progress 33,428,845 24,350,790
Finishedgoods 52,028,190 79,070,920
Packingmaterials 9,539,574 7,510,831
Provision for inventory (1,261,899) (1,261,899)
125,296,412 143,785,662
19 TradeandOtherReceivables
Current
Tradereceivables-Local 18,913,852 24,379,603
Tradereceivables-Foreign 146,678,834 158,609,434
Tradereceivables-Relatedparties 19.1 41,509,219 24,100,175
Less:Provisionforimpairmentoftradereceivables (2,075,014) (2,136,761)
Trade receivables - net 205,026,891 204,952,451
Otherreceivables 2,129,055 797,567
Depositsandprepayments 4,694,006 4,197,185
Advances 5,167,139 3,967,544
VATReceivable 12,108,759 12,145,133
Otherreceivables 24,098,959 21,107,430
Total 229,125,850 226,059,880
19.1 - Trade Receivables - Related parties
D.SamsonIndustries(Pvt)Ltd. 40,066,078 21,067,803
SamsonRubberIndustries(Pvt)Ltd. - 18,565
Samson Engineers (Pvt) Ltd. 99,491 38,621
SamsonTrading(Pvt)Ltd. 705,152 341,655
SamsonReclaimRubbersLtd. 152,957 178,694
SamsonRubberProducts(Pvt)Ltd. 34,212 2,195,971
SamsonRajarataTiles(Pvt)Ltd 107,935 -
DSIWelfareshop - 8,625
Samson Compounds (Pvt) Ltd. 206,468 238,241
DSamson&Sons(Pvt)Ltd. 44,057 12,000
Samson Group Corporate Services (Pvt) Ltd. 92,869 -
41,509,219 24,100,175
nOtes to the Financial statements (contd...)
17.3 - Recognised Deferred Tax Assets and Liabilities
As at 31.03.2014 31.03.2013
Assets Liabilities Assets Liabilities
Rs. Rs. Rs. Rs.
Property,plant&equipment - 10,905,774 - 8,831,062
Definedbenefitobligation 1,945,571 - 1,743,313 -
Tax loss 3,029,616 - 5,112,478 -
Total 4,975,187 10,905,774 6,855,791 8,831,062
101SamSon international PlC annual report 2013/14
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
19.2 Analysis of Financial Instruments
Financial instruments by category
Loans and receivables
Trade and other receivables excluding prepayments, statutory payments and advances 205,026,891 204,952,451
Cashandcashequivalents 20 60,880,788 19,755,466
265,907,679 224,707,917
Financial liabilities at amortised cost
Trade and other payables (Excluding statutory liabilities) 23 145,410,992 105,640,551
Borrowings 24 32,843,058 60,804,330
178,254,050 166,444,881
19.3 Exposure to Credit Risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
endofthereportingperiodwasasfollows:
Trade and other receivables 205,026,891 204,952,451
205,026,891 204,952,451
The maximum exposure to credit risk for trade receivables at the end of the reporting
periodbytypeofcounterpartyisasfollows:
Tradereceivablesfromrelatedparties 41,509,219 24,100,175
Tradereceivables-others 163,517,672 180,852,275
205,026,891 204,952,450
Amounts due from related companies were given on normal credit terms.
Movementsonthecompanyprovisionforimpairmentoftradereceivablesisasfollows:
31.03.2014
Rs.
Asat1April 2,136,761
Provision/(Reversal)forreceivablesimpairment (61,747)
As at 31 March 2,075,014
The creation and release of provision for impaired receivables have been included in ‘operating expenses’ and ‘other income’
inthestatementofcomprehensiveincome(Note08and07respectively).Amountschargedtotheallowanceaccountare
generally written off, when there is no expectation of recovering additional cash.
The other classes within trade and other receivables do not contain impaired assets.
nOtes to the Financial statements (contd...)
102SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
20. Cash and Cash Equivalents
Favourable Cash and Cash Equivalent Balances
Bankbalances 60,457,996 19,346,511
Cashonhand 422,792 408,955
60,880,788 19,755,466
Unfavourable Cash and Cash Equivalent Balances
Bank Overdrafts 3,180,335 15,518,523
3,180,335 15,518,523
Cash and cash equivalents for the purpose of cash flow statement 57,700,453 4,236,943
The company held cash and cash equivalents with reputed commercial banks.
21. Stated Capital
Issued and fully paid
3,847,974NumberofOrdinarySharesinIssuewithnoparvalue 105,752,241 105,752,241
105,752,241 105,752,241
22.RetirementBenefitObligation
Movement in the Present Value of Defined Benefit Obligation
Balanceasatthebeginningoftheyear 14,528,107 9,906,020
Current Service Cost 1,598,092 1,544,630
InterestCost 1,813,027 990,602
Actuarial(gain)/lossonobligation (1,871,505) 5,138,366
BenefitPaid (937,855) (3,051,511)
Balance as at the end of the year 15,129,866 14,528,107
Actuarial assumptions: 31.03.2014 31.03.2013
Salary Incremental rate 10% 10%
RateofDiscount 11% 11%
Staff turnover rate 4% to 42% 5%
ProvisionhasbeenmadeforretirementgratuitiesinconformitywithLKAS19-EmployeeBenefits.
23. Trade and Other Payables
TradeCreditors-RelatedCompanies 23.1 111,330,980 72,071,865
Trade Creditors - Other 18,038,360 10,812,096
Sundry Creditors Including Accrued Expenses 15,055,030 15,952,238
VATPayable 186,886 1,363,366
NBTPayable 90,142 1,036,657
AdvancesReceived 986,622 6,804,352
145,688,020 108,040,574
103SamSon international PlC annual report 2013/14
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
23.1 Trade Creditors - Related Companies
D.SamsonIndustries(Pvt)Ltd. 1,362,735 142,661
SamsonRubberIndustries(Pvt)Ltd. - 40,000
SamsonEngineers(Pvt)Ltd. 25,093 207,473
SamsonReclaimRubbersLtd. 385,450 243,246
SamsonRubberProducts(Pvt)Ltd. 3,201,908 3,729,279
Samson Group Corporate Services (Pvt) Ltd. - 505,669
SamsonCompounds(Pvt)Ltd. 106,088,889 66,774,430
DSIWelfareShop 23,150 39,880
MountSpringWater(Pvt)Ltd. 4,608 1,382
SamsonInformationTechnologies(Pvt)Ltd. 68,512 32,307
DSamson&Sons(Pvt)Ltd 170,635 40,888
Samson Bikes (Pvt) Ltd - 314,650
111,330,980 72,071,865
24. Borrowings
Current
Bank borrowings - Overdrafts 3,180,335 15,518,523
-ShortTermBorrowings 29,662,723 45,285,807
32,843,058 60,804,330
24.1 - Securities for the above facilities are as follows:
Nature of Asset Nature of the Bank/Institution Securities
Loan Facility
Inventory Overdraft HattonNationalBankPLC FinishedGoodStocks&Debtors
ConfirmedOrderConfirmation TermLoan HattonNationalBankPLC ConfirmedOrderConfirmation
Inventory Overdraft SeylanBankPLC FinishedGoodStocks&Debtors
Inventory Overdraft BankOfCeylon-Galle RawMaterialStocks
Inventory Overdraft BankOfCeylon-Cop. RawMaterialStocks
Financialassets Overdraft DFCCVardhanaBankPLC Treasurybills
24.2 - Short Term Borrowings
Balanceatthebeginningoftheyear 45,285,807 12,613,000
Obtainedduringtheyear 161,650,914 160,977,140
Repaymentsduringtheyear (177,273,998) (128,304,333)
Balanceattheendoftheyear 29,662,723 45,285,807
nOtes to the Financial statements (contd...)
104SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
25. Commitments and Contingencies
There were no commitments and contingencies existing as at the reporting date.
26. EventsOccurringaftertheReportingDate
Nocircumstanceshavearisen,sincereportingdate,whichwouldrequireadjustmentsto,ordisclosure,inthefinancial
statements.
27. RelatedPartyDisclosures
Detailsofsignificantrelatedpartydisclosuresareasfollows:
27.1 Key Management Personnel of the Company
TheKeyManagementpersonnel(KMP)comprisethemembersofitsBoardofDirectors.Directors’sremunerationforthe
financialyearendedMarch31,2014isgiveninNote8.1totheFinancialStaements.
Dr.D.S.Rajapaksa
Mr.D.K.Rajapaksa
Mr.D.R.Rajapaksa
Mr.D.M.Rajapaksa
Mr.C.Cumaranatunge
Mr.G.H.A.Wimalasena
Mr.T.K.Bandaranayake
Mr.B.L.P.Jayawardena
Mr.D.G.P.S.Abeygunawardana
27.2.1 Transactions with Key Management Personnel of the Company
KeyManagementPersonnelCompensation 2014 2013
Rs. Rs.
Short-termemployeebenefits 8,376,395 8,057,196
8,376,395 8,057,196
27.2.2 Other Transaction with Key Management Personnel
Mr.CCumaranatungeadirectorofthecompanyisalsoChairman/ManagingDirectorofM/sSangerGMBHandGumitex
Productions-UNDtowhichcompany’ssalesamountingtoRs.470,229,315/-hasbeenmadeduringtheyearasspecified
below.
Other Transaction with Key Management Personnel - For the year ended 31.03.2014
Rs.
ToSANGERGMBH 140,809,810
ToGUMMITEXGMBH 329,419,505
470,229,315
105SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
27.3 Directors Interest In Contracts with the Company
NoneoftheDirectorsoftheCompanyhadanydirectorindirectinterestsinanyexistingorproposedcontractswiththe
Companyotherthanthosestatedbelow:
The directors of the company are also the directors of following companies.
27.3.1 Mr.D.S.RAJAPAKSAwhoisaDirectorofthecompanyisalsoholdingdirectorshipsinthefollowingcompanies
within the Group.
Name of Company Relationship
D. Samson Industries (Pvt) Ltd. Director
DSamson&Sons(Pvt)Ltd. Director
SamsonReclaimRubbersLtd. Director
Samson Trading Company (Pvt) Ltd. Director
27.3.2 Mr.D.KRAJAPAKSAwhoisaDirectorofthecompany’sisalsoholdingdirectorshipsinthefollowingcompanies
within the Group.
Name of Company Relationship
D. Samson Industries (Pvt) Ltd. Director
Samson Compounds (Pvt) Ltd. Director
DSamson&Sons(Pvt)Ltd. Director
SamsonRubberIndustries(Pvt)Ltd. Director
SamsonRubberProducts(Pvt)Ltd. Director
SamsonReclaimRubbersLtd. Director
Samson Group Corporate Services (Pvt) Ltd. Director
Samson Information Technologies (Pvt) Ltd. Director
MountSpringWater(Pvt)Ltd. Director
SamsonManufacturers(Pvt)ltd. Director
27.3.3 Mr.D.R.RAJAPAKSAwhoisaDirectorofthecompanyisalsoholdingdirectorshipsinthefollowingcompanies
within the Group.
Name of Company Relationship
D. Samson Industries (Pvt) Ltd. Director
Samson Compounds (Pvt) Ltd. Director
Samson Engineers (Pvt) Ltd. Director
SamsonRubberIndustries(Pvt)Ltd. Director
SamsonRubberProducts(Pvt)Ltd. Director
SamsonReclaimRubbersLtd. Director
Samson Group Corporate Services (Pvt) Ltd Director
MountSpringWater(Pvt)Ltd. Director
106SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)
27.3.4 Mr.D.M.RAJAPAKSAwhoisaDirectorofthecompanyisalsoholdingdirectorshipsinthefollowingcompanies
within the Group.
Name of Company Relationship
D. Samson Industries (Pvt) Ltd. Director
Samson Compounds (Pvt) Ltd. Director
SamsonRubberIndustries(Pvt)Ltd. Director
SamsonRubberProducts(Pvt)Ltd. Director
Samson Group Corporate Services (Pvt) Ltd Director
SamsonManufacturers(Pvt)ltd. Director
27.3.5 Mr.B.L.P.JAYAWARDANAwhoisaDirectorofthecompanyisalsoholdingdirectorshipsinthefollowingcompanies
within the Group.
Name of Company Relationship
Samson Group Corporate Services (Pvt) Ltd Director
SamtessiBrushManufacturers(Pvt)Ltd Director
27.4 The company has entered into transactions during the year with following companies in which some of the directors
of the company is also directors of the said company.
Name of Company 2014 2013
Sales Purchases Sales Purchases
Rs. Rs. Rs. Rs.
D.SamsonIndustries(Pvt)Ltd. 198,616,507 827,792 186,391,439 627,679
DSamson&Sons(Pvt)Ltd 418,905 2,166,466 27,917 1,838,602
SamsonRubberIndustries(Pvt)Ltd 47,812 40,000 45,624 242,171
SamsonTradingCompany(Pvt)Ltd. 3,555,015 97,150 5,221,160 -
SamtessiBrushManufacturers(Pvt)Ltd 2,495 - - -
SamsonCompounds(Pvt)Ltd. 8,338,388 478,774,619 2,974,762 555,733,842
SamsonEngineers(Pvt)Ltd 610,090 1,036,385 391,992 3,765,537
SamsonReclaimRubbersLtd. 1,190,620 4,515,049 1,795,564 4,401,200
SamsonSportswear(Pvt)Ltd - - 10,626,375 9,600.00
Samson Group Corporate Services (Pvt) Ltd. - 3,451,836 - 3,384,551
SamsonManufactures(Pvt)Ltd 102,528 - 13,741.00 -
SamsonRubberProducts(Pvt)Ltd 11,020,492 15,284,699 12,270,369 14,812,531
MountSpringWater(Pvt)Ltd - 14,613 27,157 10,053
SamsonInformationTechnologies(Pvt)Ltd. - 501,990 - 571,308
27.5 OutstandingamountsduefromrelatedpartiesandduetorelatedpartiesaredisclosedinNote19.1&23.1
respectively.
107SamSon international PlC annual report 2013/14
nOtes to the Financial statements (contd...)28.SegmentOperatingResults
28.1
Bu
sin
ess
Seg
men
t M
edic
al It
ems
Foo
d G
rad
e It
ems
Ho
use
ho
ld It
ems
Oth
ers
Co
mp
any
20
14
201
3
201
4
2013
2
014
20
13
201
4
2013
20
14
2013
R
s.’0
00
Rs.
’000
R
s.’0
00
Rs.
’000
R
s.’0
00
Rs.
’000
R
s.’0
00
Rs.
’000
R
s.’0
00
Rs.
’000
ExportSales
208,861
212,328
284,583
285,912
67,714
99,166
52,092
58,635
613,250
656,041
LocalSales
635
1,343
2,081
5,338
40,561
39,389
296,034
271,747
339,311
317,817
209,496
213,671
286,664
291,250
108,275
138,555
348,126
330,382
952,561
973,858
Profit/(Loss)onFixedAssetDisposal
82
291
81
291
88
292
81
292
332
1,166
OtherIncome
472
328
472
214
472
24
535
16
1,951
582
210,050
214,290
287,217
291,755
108,835
138,871
348,742
330,690
954,844
975,606
SegmentalExpense
(200,558)
(201,821)
(256,869)
(261,225)
(105,064)
(136,291)
(344,589)
(322,209)
(907,080)
(921,546)
OperatingProfit/(Loss)
9,492
12,469
30,348
30,530
3,771
2,580
4,153
8,481
47,764
54,060
28.2
Geo
gra
ph
ical
Seg
men
t
Europe
162,038
193,324
284,583
285,912
49,022
45,873
44,186
46,193
539,829
546,757
Australia&NewZealand
35,645
-
-
-
1,380
5,085
2,659
885
39,684
5,970
America
-
-
-
-
2,817
413
-
1,161
2,817
1,574
Africa
-
-
-
-
--
5,247
10,321
5,247
10,321
Asia
11,178
19,004
-
-
14,495
47,795
-
75
25,673
91,419
Total
208,861
212,328
284,583
285,912
67,714
99,166
52,092
58,635
613,250
656,041
122SamSon international PlC annual report 2013/14
GlOBal reporting initiative (Gri)SamsoninternationalPlcvoluntarilyadoptedGlobalReportingInitiative(GRI)G4‘Inaccordance’coreGuidelinesduringthe
financialyear2013/14asameasureofimprovingthestandardofaccountabilityandreportingonaccountability,Thesedetailsare
given below.
Strategy and Analysis Page
G4-1 StatementfromtheChairman Chairman’sReview 3-6
Organization profile
G4-3 Nameoftheorganization. SamsonInternationalPlc
G4-4 Primarybrands,products,and/orservices. ManagementDiscussionandAnalysis-ourproducts 25-36
G4-5 Locationoforganization’sheadquarters. CorporateInformation 14-15
G4-6 Numberofcountrieswheretheorganization ManagementDiscussionandAnalysis- 42
operates, and names of countries with either Our Global Presence
major operations or that are specifically
relevant to the sustainability issues
covered in the report.
G4-7 Natureofownershipandlegalform. CorporateInformationandInvestorInformation 15,130
G4-8 Marketsserved(includinggeographic ManagementDiscussionandAnalysis- 42,107
breakdown,sectorsserved,andtypesof OurGlobalPresenceandNote28ofthe
customers/beneficiaries). FinancialStatements
G4-9 Scaleofthereportingorganization. CorporateInformationandInvestorInformation 15,127
G4-10 Totalworkforcebyemploymenttype, ManagementDiscussionandAnalysis-OurPeople 36
employment contract, and region, broken
down by gender.
G4-11 Percentage of employees covered by collective None
bargaining
G4-12 Organizationssupplychain Sustainability-Environment 121
G4-13 Significantchangesduringthereportingperiod InvestorInformation 127
regardingsizestructureandownership
Commitment to External Initiatives
G4-14 Precautionaryprinciples RiskManagement 59-64
G4-15 Charters, principles or other initiatives Corporate Governance and Sustainability 53, 108
G4-16 Membershipsofassociation ManagementDiscussionandAnalysis- 50
MembershipandAssociations
123SamSon international PlC annual report 2013/14
Identified Material Aspects and Boundaries Page
G4-17 Operationalstructureoftheorganization. ExecutiveManagement 23
G4-18 Processfordefiningreportcontent. ManagementDiscussionandAnalysis, 24,83,
Accounting Policies, Glossary of Financial Terms. 135
G4-19 Materialaspectidentifiedforreportcontent. ManagementDiscussionandAnalysis, 24,83
Accounting Policies.
G4-20 Aspectboundaryforidentifiedmaterial ManagementDiscussionandAnalysis, 24,83
aspectswithintheorganization. AccountingPolicies.
G4-21 Aspectboundaryforidentifiedmaterial Chairman’sReview,ManagementDiscussionand 3,24,
aspectsoutsidetheorganization. Analysis,AccountingPolicies. 83
G4-22 Restatementsofinformationprovidedinthe None
previous reports.
G4-23 Significantchangesfrompreviousreporting AccountingPolicies,Chairman’sReview 83,3
periods in the scope and aspect boundaries.
Stakeholder engagement
G4-24 Listofstakeholdergroupsengagedbythe SustainabilityReport 109-119
organization.
G4-25 Basisforidentificationandselectionof SustainabilityReport 109-119
stakeholders with whom to engage.
G4-26 Approachestostakeholderengagement, SustainabilityReport 109-119
including frequency of engagement by type
and by stakeholder group.
G4-27 Keytopicsandconcernsthathavebeen SustainabilityReport 109-119
raised through stakeholder engagement.
Report Profile
G4-28 Reportingperiod Yearended31March2014.
G4-29 Date of most recent previous report Quarterly Financials 131
G4-30 Reportingcycle Annually
G4-31 Contactpointforquestionsregardingthe Director/GeneralManager
report or its contents. Samson International Plc,
AkuressaRoad,
Bogahagoda,
Galle.
G4-32 CompliancewithGRIG4Guidelines,GRI Sustainabilityreport 108,24
ContentIndexandExternalAssuranceReport. andManagementDiscussionandAnalysis.
G4-33 Policyandcurrentpracticewithregardto AuditReportandAuditCommitteeReport 77,72
seeking external assurance for the report.
GlOBal reporting initiative (Gri) (contd...)
124SamSon international PlC annual report 2013/14
Governance Page
G4-34 Governancestructureoftheorganization, ReportoftheBoardofDirectors 65-70
including committees under the highest
governance body responsible for
decision-making on economic, environment
and social impacts
Ethics and integrity
G4-56 The values, principles , standards and norms Our corporate vision ,mission, values and our aim. 2
of behavior
Specific Standard Disclosures
Category: Economic
Aspect Economic Performance
G4-EC1 Directeconomicvaluegenerated,distributed ManagementDiscussionandAnalysis- 50
andretained. StatementofValueAdded
G4-EC2 Financialimplicationsandotherrisksand ManagementDiscussionandAnalysis 24,59
opportunitiesfortheorganization’sactivities andRiskManagement
due to climate change.
G4-EC3 Coverageoftheorganization’sdefined AccountingPoliciesandNotesto 91
benefit plan obligations. Financial Statements
Aspect Indirect Economic Impacts
G4-EC8 Significant indirect economic impacts, Chairman’sReview , 3, 132
including the extent of impacts. Ten year Economic Summary
Category: Environment
Aspect Emissions
G4-EN15 Directgreenhousegas(GHG)emissions(Scope1) ManagementDiscussionandAnalysis-Energy 47
G4-EN16 Energyindirectgreenhousegas(GHG) ManagementDiscussionandAnalysis-Energy 47
emissions(Scope 2)
G4-EN17 Otherindirectgreenhousegas(GHG) ManagementDiscussionandAnalysis-Energy 47
emissions (Scope 3)
G4-EN18 Greenhousegas(GHG)emissionsintensity ManagementDiscussionandAnalysis-Energy 47
Aspect EffluentsandWaste
G4-EN23 Totalweightofwastebytypeand ManagementDiscussionandAnalysis- 47
disposal method Production efficiencies and energy
G4-EN29 Compliance None 108
Monetaryvalueofsignificantfinesandtotal
number of non-monetary sanctions for
non-compliance with environmental
laws and regulations.
GlOBal reporting initiative (Gri) (contd...)
125SamSon international PlC annual report 2013/14
Category: Social Page
Labor Practices and Decent Work
Aspect Employment
G4-LA1 Totalnumberandrateofnewemployeehires ManagementDiscussionandAnalysis-OurPeople 36-40
and employee turnover by age group gender
and region.
G4-LA2 Benefitsprovidedtofull-timeemployeesthat ManagementDiscussionandAnalysis-OurPeople 41
are not provided to temporary or part-time
employees, by significant location of operation.
Aspect Labour/ManagementRelations
G4-LA4 Minimumnoticeperiodsregardingoperational ManagementDiscussionandAnalysis-Legal 49
changes, including whether these are specified
in collective agreements.
Aspect Occupational Health and Safety
G4-LA5 Percentageoftotalworkforcerepresentedin ManagementDiscussionandAnalysis-OurPeople 36
formal joint management-worker health and
safety committees that help monitor and
advice on occupational health and safety
programmes.
G4-LA6 Typeofinjuryandratesofinjury,occupational ManagementDiscussionandAnalysis-OurPeople 36
disease, lost days and absenteeism, and total
number of work-related fatalities, by region
and by gender.
Aspect Training and Education
G4-LA9 Averagehoursoftrainingperyearperemployee ManagementDiscussionandAnalysis-OurPeople 36-40
by gender, and by employee category.
Human Rights
Aspect Investment
G4-HR1 Totalnumberandpercentageofsignificant None
investment agreements and contracts that
include human rights clauses or that
underwent human rights screening.
Aspect Child Labour
G4-HR5 Operationsandsuppliersidentifiedashaving ManagementDiscussionandAnalysis-Legal 49
significant risk for incidents of child labour and
measures taken to contribute to the effective
abolition of child labour.
GlOBal reporting initiative (Gri) (contd...)
126SamSon international PlC annual report 2013/14
Society Page
Aspect Anti-Corruption Risk Management
G4-SO3 Totalnumberandpercentageofoperations None
assessed for risks related to corruption and
the significant risks identified.
Aspect Compliance
G4-SO8 Monetaryvalueofsignificantfinesandtotal None
number of non-monetary sanctions for
non-compliance with laws and regulations.
Product Responsibility
Aspect Product and Service Labelling
G4-PR3 Typeofproductandserviceinformation ManagementDiscussionandAnalysis-OurProducts 25-36
requiredbytheorganization’sprocedures
for product and service information and
labeling, and percentage of significant product
and service categories subject to such
information requirements.
Aspect MarketingCommunications
G4-PR7 Totalnumberofincidentsofnon-compliance None
with regulations and voluntary codes
concerning marketing communications,
including advertising, promotion, and
sponsorship by type of outcomes.
Aspect Compliance
G4-PR9 Monetaryvalueofsignificantfinesfor None
non-compliance with laws and regulations
concerning the provision and use of
products and services.
GlOBal reporting initiative (Gri) (contd...)
127SamSon international PlC annual report 2013/14
inVestOrinformation“The active participation of shareholders at
the Annual General Meeting is encouraged.
The Board believes the AGM is a means
of continuing effective dialogue with
shareholders. While valuing the patronage of
all our shareholders, the Company has made
every endeavours to ensure equitable treatment
to all our shareholders irrespective of the
number of shares they hold”.
BoardofDirectorsatthelastAGM
1) General
a) Statedcapital - Rs.105,752,241
b) No.ofShares - 3,847,974
c) Class of Shares - Ordinary Shares
128SamSon international PlC annual report 2013/14
2) Stock Exchange Listing
The issued ordinary shares of Samson International Plc are listed on the Colombo Stock Exchange. The audited income statement
fortheyearended31stMarch2014andtheauditedbalancesheetoftheCompanyasatthatdatehavebeensubmittedtothe
Colombo Stock Exchange within the stipulated date.
3) Date of Listing
The Company was listed on 24th July 1992.
4) MarketCapitalization
ThemarketcapitalizationoftheCompanywhichisthenumberofordinarysharesissuedmultipliedbythemarketvalueofashare
(attheyearend),wasRs.339.3mnat31stMarch2014(Rs.316.3mnasat31stMarch2013).
5) MarketValueoftheCompany’sOrdinaryShares
Market Value per 2014 Date 2013 Date Change
share Rs Rs
Highest Price 105.00 16.01.2014 120.00 28.8.2012 (12.5%)
LowestPrice 74.00 5.04.2013 62.00 13.6.2012 19%
Closing 88.20 31.3.2014 82.20 31.3.2013 7.2%
inVestOr information (contd...)
The share price of the company has increased
five-fold during last ten years
Share Price Rs.160
140
120
100
80
60
40
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
20
0
Rs.
129SamSon international PlC annual report 2013/14
6) Analysis of Shareholders based on number of shares asat31stMarch2014
No of Shares held No of % of Total % of total
Shareholders Shareholders holding holding
1-1,000 1,023 90.9 121,652 3.2
1,001–10,000 88 7.8 244,041 6.4
10,001-100,000 9 0.8 304,427 7.9
100,001–1,000,000 3 0.3 932,106 24.2
1,000.000&Over 2 0.2 2,245,748 58.3
Total 1,125 100 3,847,974 100.0
Analysis of Shareholders based on number of shares asat31stMarch2013
No of Shares held No of % of Total % of total
Shareholders Shareholders holding holding
1-1,000 1,021 90.0 130,334 3.4
1,001–10,000 94 8.3 258,915 6.7
10,001-100,000 7 1.0 281,195 7.3
100,001–1,000,000 3 0.4 932,106 24.2
1,000.000&Over 2 0.3 2,245,424 58.3
Total 1,127 100 3,847,974 100.0
7) AnalysisofShareholderscategory-wiseasat31stMarch2014
Category No of % of Total % of
Shareholders Shareholders holding total holding
Individual- Local 1,081 96.4 621,922 16.2
Institutional-local 42 3.6 3,225,742 83.8
Individual - foreign 2 0.0 310 0
Institutional- foreign 0 0.0 0 0
Total 1,125 100 3,847,974 100
AnalysisofShareholderscategory-wiseasat31stMarch2013
Category No of % of Total % of
Shareholders Shareholders holding total holding
Individual- Local 1,086 96.4 621,869 16.2
Institutional-local 40 3.5 3,225,805 83.8
Individual - foreign 1 0.1 300 0
Institutional- foreign 0 0 0 0
Total 1,127 100 3,847,974 100
inVestOr information (contd...)
130SamSon international PlC annual report 2013/14
8) NoofShareTransctionsTheNoofSharetransactionsfortheyearended31stMarch2014and2013are49,773and54,183respectively.
9) Public HoldingsAsat31stMarch2014,thepublicheld43.04%(in2012/2013-13.91%)ofthesharesoftheCompany.Thissignificantdifference
arose due to change in the interpretation of the definition of public holding by the Stock Exchange.
10) TwentyMajorShareholdersasat31stMarch2014
Shareholder No of Shares % No of Shares %
as at 31/3/2014 as at 31/3/2013
1 DSI Samson Group ( Pvt) Ltd. 1,204,824 31.3 1,204,824 31.3
2 SeylanBankPLC/ThirugnanasambanderSenthilvel 1,040,924 27.0 1,040,600 27.0
3 D.SamsonIndustries(Pvt)Ltd. 548,758 14.2 548,758 14.2
4 D.Samson&Sons(Pvt)Ltd. 274,348 7.1 274,348 7.1
5 Dr.Thiruganansabander Senthilvel 109,000 2.8 109,000 2.8
6 SamsonRubberIndustries(Pvt)Ltd. 96,553 2.5 96,553 2.5
7 SangerGMBH 78,622 2.0 78,622 2.0
8 AbeysiriHemapalaMunasinghe 30,107 0.8 30,107 0.8
9 Mr.G.K.Piyasena 22,980 0.6 22,980 0.6
10 SamsonManufacturers(Pvt)Ltd. 22,154 0.6 22,154 0.6
11 Mr.H.Tanigawa 20,460 0.5 20,460 0.5
12 Mr.N.C.Pakianathan 12,538 0.3 9,304 0.3
13 Mrs.D.R.Wimalasena 10,694 0.3 - -
14 Mrs.D.W.Rathna - 10,796 0.3
15 Mr.D.R.Rajapaksa 10,319 0.3 10,319 0.3
16 WaldockMackenzieLtd./Hi-LineTrading(Pvt)Ltd. 10,000 0.3 10,000 0.3
17 Mr.D.K.Rajapaksa 9,931 0.3 9,931 0.3
18 Mr.T.S.Salim 9,400 0.3 9,900 0.3
18 Mr.D.M.Rajapaksa 9,295 0.2 9,295 0.2
19 Dr.D.S.Rajapaksa 7,156 0.2 7,156 0.2
20 WaldockMackenzieLtd./Hi-LineTowers(Pvt)Ltd. 7,100 0.2 7,100 0.2
Total 3,535,163 91.8 3,532,207 91.8
Others 312,811 8.2 315,767 8.2
Total Shareholdings of the Company 3,847,974 100.0 3,847,974 100.0
inVestOr information (contd...)
131SamSon international PlC annual report 2013/14
FOur-QuarterFinancial summary
2013 2012 2013 2012 2013 2012 2014 2013Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Un audited Un audited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Continuing operationsRevenue
Export 105,693 142,276 114,249 152,224 186,011 166,399 207,162 195,144 Local 69,072 97,292 89,504 83,010 88,814 66,132 84,961 72,717
Total Revenue 174,765 239,568 203,753 235,234 274,825 232,531 292,123 267,861Cost of sales (154,032) (206,748) (171,124) (194,765) (229,684) (196,581) (252,146) (234,057) Gross profit 20,733 32,820 32,629 40,469 45,141 35,950 39,977 33,804
Other Operating income 255 1,339 721 519 848 226 1,075 (186) Exchange gain / (Loss) 4,818 3,744 6,059 (885) 3,413 2,660 3,952 549 Selling & Distribution Cost (4,330) (8,211) (3,638) (5,179) (7,174) (6,931) (7,147) (6,364) Administrative expenses (15,521) (13,825) (16,019) (15,500) (16,238) (15,608) (24,287) (18,975)
Operating profit 5,955 15,867 19,752 19,424 25,990 16,297 13,570 8,828
Finance costs (1,596) (2,322) (974) (3,017) (1,115) (2,456) (1,244) (1,810) Profit before income tax 4,359 13,545 18,778 16,407 24,875 13,841 12,326 7,018
Income tax expense (921) (644) (2,035) (2,598) (3,105) (1,491) (2,193) (528) Profit after income tax 3,438 12,901 16,743 13,809 21,770 12,350 10,133 6,490
FINANCIAL POSITION
2013 2012 2013 2012 2013 2012 2014 2013Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Un audited Un audited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Assets
Non-current assets
Property Plant & Equipment 168,440 176,150 164,759 175,539 163,090 175,566 172,215 174,449Investments in Others 16,335 - 16,335 - 31,354 - 31,354 - Intangible assets 8,631 9,910 8,312 9,590 7,992 9,271 - 8,951Deferred Tax Assets 7,631 - 8,405 - 5,290 - 5,290 6,856
201,037 186,060 197,811 185,129 207,726 184,837 208,859 190,256 Current assets
Inventories 138,669 149,125 160,453 134,418 168,342 160,789 125,502 144,174Trade & other receivables 172,759 216,019 172,727 196,708 212,117 192,170 221,728 224,308Due from related companies - - - - - - - Income tax refund due 13,066 15,472 11,382 13,331 9,663 12,475 9,663 13,252Cash and cash equivalents 44,084 30,703 48,230 35,891 51,203 42,589 79,934 19,755
368,578 411,319 392,792 380,348 441,325 408,023 436,827 401,489Total Assets 569,615 597,379 590,603 565,477 649,051 592,860 645,686 591,745Equity and liabilities
Stated capital 105,753 105,753 105,753 105,753 105,752 105,752 105,752 105,752General reserves 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000Retained earnings 188,590 155,352 197,637 161,252 219,408 173,604 231,388 185,152
Total equity 404,343 371,105 413,390 377,005 435,160 389,356 447,140 400,904Liabilities
Non-current liabilitesDeferred Tax Liabilities 10,339 9,277 11,466 9,734 9,737 10,368 9,737 8,831Retirement benefit obligations 14,635 9,629 15,569 10,055 16,128 8,818 16,953 14,528
24,974 18,906 27,035 19,789 25,865 19,186 26,690 23,359Current liabilities
Trade and other payables 98,427 114,245 93,468 87,629 115,722 147,645 139,347 106,678Short term borrowings 21,243 32,911 39,013 40,123 48,034 12,996 29,328 45,285Bank overdrafts 20,628 60,212 17,697 40,931 24,270 23,677 3,181 15,519
140,298 207,368 150,178 168,683 188,026 184,318 171,856 167,482 Total liabilities 165,272 226,274 177,213 188,472 213,891 203,504 198,546 190,841Total equity and liabilities 569,615 597,379 590,603 565,477 649,051 592,860 645,686 591,745
For the 03 Months ended 31st December For the 03 Months ended 31st MarchFor the 03 Months ended 30th June For the 03 Months ended 30th September
As at 31st MarchAs at 30th June As at 30th September As at 31st December
INCOME STATEMENT
132SamSon international PlC annual report 2013/14
ten - yeareconomic summary
Economic Indicators 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GDP Indicators
GDP growth Per cent 5.4 6.2 7.7 6.8 6.0 3.5 8.0 8.2 6.3 7.3 GDP (current prices) Rs. billion 2,091.0 2,453.0 2,939.0 3,578.0 4,411.0 4,835.0 5,604.0 6,543.0 7,579.0 8,674.0 GDP (current prices) USD billion 20.7 24.4 28.3 32.3 40.7 42.1 49.6 59.2 59.4 67.2 GDP per capita (USD) Growth Per cent 8.6 20.5 14.5 13.8 24.6 2.1 16.7 18.3 3.0 12.0 GDP per capita (market prices) Rs (000) 107.4 124.7 147.8 178.8 218.2 236.4 271.3 313.6 372.8 423.5 GDP per capita (market prices) USD 1,030.0 1,241.0 1,421.0 1,617.0 2,014.0 2,057.0 2,400.0 2,836.0 2,922.0 3,280.0
Fiscal policy IndicatorsBudget deficit Per cent of GDP -7.5 -7 -7 -6.9 -7 -9.9 -8 -6.9 -6.5 -5.9
Monetory policy Indicators12 month T-Bill yield (year-end) Per cent 7.7 10.4 13 20 19.1 9.3 7.6 9.3 11.7 8.3Prime lending rate (year-end) Per cent 10.2 12.2 15.2 18.0 18.5 10.9 9.3 10.8 14.4 10.1 M2b money supply growth Per cent 19.6 19.1 17.8 16.6 8.5 18.6 15.8 19.1 17.6 16.7
Other Economic IndicatorsInflation annual average (CCPI 2006/07=100) Per cent - - - - - 3.5 6.2 6.7 7.6 6.9Unemployment rate Per cent 8.3 7.2 6.5 6 5.4 5.8 4.9 4.2 4 4.4All share index (year-end) Points 1507 1922 2722 2541 1503 3386 6636 6074 5643 5913Population Million 19.5 19.7 19.9 20 20.2 20.5 20.7 20.9 20.3 20.5
External Sector IndicatorsExports USD billion 5.8 6.3 6.7 7.7 8.1 7.1 8.6 10.6 9.8 10.4Imports USD billion 8.0 8.9 10.3 11.3 14.1 10.2 13.5 20.3 19.2 18.0 Balance of payments Per cent of GDP (1.0) 2.1 0.7 1.6 (3.5) 6.5 1.9 (1.9) 0.3 1.5 Current account balance USD billion (0.6) (0.7) (1.5) (1.4) (1.4) (0.2) (1.1) (4.6) (4.0) (2.6) Current account % of GDP Per cent (3.1) (2.7) (5.3) (4.2) (9.5) (0.5) (2.2) (7.8) (6.7) (3.9)
ForiegnCurrency IndicatorsExchange rate (annual average) Rs/USD 100.5 104.0 110.6 108.3 114.9 113.1 110.6 127.6 129.1
Rs/Euro 125.1 130.6 151.6 159.3 160.2 150.1 153.9 164.0 171.5 Rs/Yen 0.9 0.9 0.9 1.1 1.2 1.3 1.4 1.6 1.3 Rs/INR 2.3 2.3 2.7 2.5 2.4 2.5 2.4 2.4 2.2
Exchange rate change_ USD (annual average) Per cent 4.8 -0.7 3.4 6.4 -2.1 6.1 -1.6 -2.2 15.4 1.2
Rubber Sector Information
Production kg mn 94.7 104.4 109.2 117.6 129.2 136.9 152.9 158.2 152.0 130.4 Total extent hectares ‘000 115.0 116.0 120.0 120.0 122.0 124.0 126.0 129.0 131.0 132.0 Yield kg/hectare 1,064.0 1,144.0 1,128.0 1,261.0 1,382.0 1,437.0 1,561.0 1,566.0 1,459.0 1,219.0 Average price Colombo Auction Rs/kg 127.2 141.0 202.2 234.2 269.5 211.7 403.0 508.8 416.6 376.9 Export (f.o.b) Rs/kg 127.3 148.0 204.7 234.5 278.4 202.3 377.5 535.4 420.7 389.8
133SamSon international PlC annual report 2013/14
ten - yearFinancial summary
Year Ended 31st March 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 2006/07 2005/06 2004/05
Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000
Income statement :
Turnover 952,561 973,858 961,489 716,102 588,207 620,518 698,876 638,458 462,687 455,814
ProfitBeforeTaxation 64,841 51,077 19,123 (55,980) (7,608) 14,533 70,012 63,424 25,605 45,692
Taxation (8,491) 4,438 696 (229) (663) (5,757) (9,776) (13,297) (6,235) (7,779)
Profit After Taxation 56,349 55,515 19,820 (56,209) (8,271) 8,775 60,295 50,127 19,370 37,913
Balance Sheet :
Capital And Reserves
Statedcapital 105,752 105,752 105,752 105,752 105,752 105,752 105,752 38,480 38,480 32,983
CapitalReserves 110,000 110,000 110,000 10,000 10,000 10,000 10,000 67,272 67,272 47,483
RevenueReserves 233,806 185,152 137,332 223,893 280,102 288,373 279,597 229,302 186,871 167,502
Shareholders funds 449,558 400,904 353,084 339,645 395,854 404,125 395,349 335,054 292,623 247,968
Non Current Liabilities
InterestBearingBorrowings - - - - 868 5,120 16,877 14,500 20,500
DeferredTax 10,906 8,831 11,408 11,388 11,703 11,202 7,808 10,335 9,594 8,604
RetirementBenefitObligation 15,130 14,528 9,906 7,775 6,306 5,234 8,150 9,238 5,567 4,680
Total Equity & Non Current Liabilities 475,594 424,263 374,398 358,808 414,731 425,681 428,184 369,127 328,284 261,252
Assets Employed
CurrentAssets 424,020 402,853 388,248 388,205 476,617 481,125 421,581 343,385 486,907 307,190
CurrentLiabilities (178,531) (168,845) (208,197) (222,481) (232,670) (231,810) (176,186) (116,794) (283,562) (141,788)
WorkingCapital 245,488 234,008 180,051 165,724 243,947 249,315 245,395 226,591 203,345 165,402
Property,Plant&Equipment 179,751 190,255 194,347 193,084 170,784 176,366 182,789 142,436 124,839 95,749
Investment 50,354 - - - - - - 100 100 100
Long-Term Loans - - - - - - - - - -
Share Issue Expenses - - - - - - - - - -
Total Assets Less Current Liabilities 475,594 424,263 374,398 358,808 414,731 404,557 395,350 335,054 292,623 247,968
Financial Highlights :
Operating Results
NetProfit(%) 6 6 2.10 (7.85) (1.41) 1.41 8.63 7.85 4.19 8.32
AnnualSalesGrowth(%) (2) 1.29 34.00 21.74 (5.21) (11.21) 9.46 37.99 1.51 20.35
ROCE(%) 12.53 13.85 5.61 (16.55) (2.09) 2.17 15.25 14.96 6.62 15.29
Financial Position
QuickAssetsRatio(Times) 1.67 1.53 1.26 1.11 1.69 1.77 1.84 1.41 1.04 1.32
FixedAssetTurnoverRatio(Times) 5.45 5.31 4.95 3.71 3.44 3.52 3.82 4.48 3.70 4.76
Shareholder Information
EarningsPerShare(Rs.) 14.64 14.43 5.15 (14.61) (2.15) 2.28 15.67 13.03 5.03 11.49
Dividends(Rs.‘000) 7,696 7,696 - - - - - 7,696 - 6,597
DividendsRate(%) 20 20 - - - - - 20 - 20
MarketPricePerShare(Rs.) 88.20 82.20 90.00 100.00 86.75 50.25 62.00 44.75 47.25 63.00
PriceEarningsRatio(Times) 6.02 5.70 17.47 (6.85) (40.36) 22.43 3.95 3.43 9.39 5.48
NetAssetsPerShare(Rs.) 116.83 104.18 91.75 88.27 102.87 105.02 102.74 87.07 76.05 75.18
134SamSon international PlC annual report 2013/14
FOreiGncurrency Financial statementsINCOME STATEMENT
FOR THE YEAR ENDED 31ST MARCH 2014 2013 2014 2013Revenue 7,234,897 7,420,048 5,374,617 5,334,456 Cost of sales (6,135,038) (6,278,310) (4,557,561) (4,513,632) Gross profit 1,099,858 1,141,738 817,056 820,824
Other income 17,335 13,328 12,877 9,582 Distribution cost (182,432) (188,966) (135,524) (135,852) Administrative expenses (571,985) (554,203) (424,913) (398,430)
Operating Profit 362,776 411,898 269,497 296,123
Finance Income 158,411 52,699 117,679 37,887 Finance cost (28,710) (75,431) (21,328) (54,229)
Net Finance Income 129,701 (22,731) 96,351 (16,342)
Profit before income taxation 492,477 389,166 365,849 279,781 Income tax expense (64,488) 33,818 (47,906) 24,313
Profit for the year 427,990 422,985 317,942 304,094
STATEMENT OF FINANCIAL POSITION
AS AT 31st March 2014 2013 2014 2013ASSETS
Property, plant and equipment 1,303,009 1,358,237 1,015,244 1,042,782 Intangible Assets 19,349 69,688 15,076 53,503 Available for sale financial assets 161,567 - 125,885 - Other Financial assets 219,414 - 170,957 - Deferred tax assets 37,642 53,378 29,329 40,981 Non Current Assets 1,740,981 1,481,304 1,356,491 1,137,266
- - Inventories 947,994 1,119,496 738,633 859,489 Trade and other receivables 1,733,569 1,760,072 1,350,716 1,351,288 Tax Recoverable 65,951 103,178 51,386 79,215 Cash and cash equivalents 460,625 153,813 358,897 118,090 Current Assets 3,208,139 3,136,559 2,499,633 2,408,081
- - Total Assets 4,949,120 4,617,862 3,856,124 3,545,347
- EQUITY AND LIABILITIES -
(Major Import Currency) (Major Export Currency)
In USD' In Euro'(Major Import Currency) (Major Export Currency)
In USD' In Euro'
Equity 3,401,366 3,121,388 2,650,186 2,396,434
Non- Current Liabilities 196,986 181,871 153,482 139,631 Current liabilities - - Trade & other payables 1,102,278 841,189 858,843 645,820 Short Term Borrowings 248,491 473,414 193,613 363,462
1,350,769 1,314,603 1,052,456 1,009,282 Total Liabilities 1,547,755 1,496,475 1,205,938 1,148,913 Total Equity And Liabilities 4,949,120 4,617,862 3,856,124 3,545,347
01. This information does not constitute a full set of financial statements in compliance with SLFRS/LKAS. 02. Exchange rates prevailing at each year end have been used to convert the statement of financial position and average exchange rate prevailed during the year has been used to convert the income statement.03. Above has been presented for the information purpose only.
135SamSon international PlC annual report 2013/14
GlOssaryof Financial terms
1. Segment : Constituentbusinessunitsgroupedintermsofthenatureandsimilarityofoperations.
2. AnnualSalesGrowth : Percentagechangeoverpreviousyear’sgrossturnover.
3. CurrentRatio : Currentassetsdividedbycurrentliabilities.
4. DividendCover : Profitavailableforappropriationdividedbygrossdividend.
5. DividendperShare : TotalGrossDividenddividedbyno.ofsharesattheendoftheyear.
6. GrossDividend : PortionofProfits,inclusiveoftaxwithheld,distributedtoshareholders.
7. DividendRate : GrossDividendsdeclaredpershare.
8. EarningsperShare : Profitattributabletoshareholdersdividedbytheno.ofsharesissued.
9. InterestCover : Profitfromordinaryactivitiesbeforetaxandfinancecostdividedbyfinancecost.
10.NetAssetsperShare : NetAssetsdividedbytheno.ofshares.
11.PriceEarningsRatio : MarketPricepersharedividedbyearningspershare.
12.DeferredTaxation : Sumsetasidefortaxinthefinancialstatementthatwillbecomepayableinafinancialyear
other than the current financial year.
13.ValueAdditions : ThequantumofwealthgeneratedbytheactivitiesoftheCompany.
14.RevenueReserves : Reserveconsideredasbeingavailablefordistributionsandinvestments.
15.CapitalReserves : Reservesidentifiedforspecificpurposesandconsiderednotavailablefordistribution.
16.ReturnonCapitalEmployed : Profitafterinterest,taxdividedbycapitalemployedorshareholdersfundsattheyearend.
17.ShareholdersFund : Totalofstatedcapitalandrevenuereserves.
18.Capitalemployed : Shareholders’fundspluslong-termbearingloansandborrowings.
19.AverageCapitalEmployed : Meanoftwoconsecutiveyears’capitalemployed.
20.CorporateGovernance : AsystembywhichCompaniesaredirectedandcontrolledbythemanagementinthe
best interest of the stakeholders ensuring greater transparency through better and timely
financial reporting.
21.MarketCapitalization : NumberofordinarysharesinissuemultipliedbytheMarketValuepershareatthebalance
sheet date.
22.RelatedParties : Partieswhocouldcontrolorsignificantlyinfluencethefinancialandoperatingpoliciesof
the business.
23.IntangibleAssets : Anintangibleassetisanidentifiablenon-monetaryassetwithoutphysicalsubstance.
24.Impairment : Thisoccurswhentherecoverableamountofanassetislessthanitscarryingamount.
25.Fairvalue : Thisistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,between
knowledgeable, willing parties at arm’s length transaction.
136SamSon international PlC annual report 2013/14
nOticeof MeetingNOTICEISHEREBYGIVENthattheTwentySecondAnnualGeneralMeetingofSamsonInternationalPLCwillbeheldonFridaythe19thdayofSeptember2014attheSriLankaCollegeofObstetriciansandGynaecologists,SamsonRajapaksaAuditoriumatNo.112,ModelFarmRoad,Colombo08at2.00p.m.forthefollowingpurposes:
1. ToreceiveandconsidertheAnnualReportoftheBoardofDirectorsontheaffairsofCompanyandtheFinancialStatementstheyearended31stMarch2014andtheReportoftheAuditorsthereon.
2. Tore-electMr.DRRajapaksewhoretiresbyrotationintermsofArticle88(i)oftheArticlesofAssociation,asaDirector of the Company.
3. Tore-electMr.TKBandaranayakewhois71yearsofage,asaDirectoroftheCompanyandtoadoptthefollowingresolution:-
“ITISHEREBYRESOLVEDTHATMr.TKBandaranayakewhois71yearsofagebeandisherebyre-electedasaDirectoroftheCompanyanditisherebydeclaredasprovidedforinSection211(1)oftheCompaniesAct,No.7of2007thattheagelimitof70yearsreferredtoinSection210oftheCompaniesActshallnotapplytoMr.TKBandaranayake”.
4. Tore-electMr.GHAWimalasenawhois73yearsofage,asaDirectoroftheCompanyandtoadoptthefollowingresolution:-
“ITISHEREBYRESOLVEDTHATMr.GHAWimalasenawhois73yearsofagebeandisherebyre-electedasaDirectoroftheCompanyanditisherebydeclaredasprovidedforinSection211(1)oftheCompaniesAct,No.7of2007thattheagelimitof70yearsreferredtoinSection210oftheCompaniesActshallnotapplytoMr.GHAWimalasena.”
5. Tore-appointMessrsHLBEdirisinghe&Co.CharteredAccountantsasAuditorsoftheCompany fortheensuingyearandtoauthorizetheDirectorstodeterminetheirremuneration.
6. ToauthorizetheDirectorstodeterminedonationsfortheyearending31stMarch2015andup tothedateofthenextAnnualGeneralMeeting.
By Order of the Board
SAMSON INTERNATIONAL PLC
P W Corporate Secretarial (Pvt) LtdSecretaries
August 1st, 2014. Colombo
Notes:- 1.AshareholderisentitledtoappointaProxytoattendandvoteatthemeetingonhis/herbehalf.
2. A Proxy need not be a shareholder of the Company.
3. AFormofProxyaccompaniesthisNotice.
4. ThecompletedFormofProxyshouldbedepositedattheRegisteredOfficeoftheCompany,No.110,KumaranRatnam
Road,Colombo02,notlessthan48hoursbeforethetimeforholdingtheMeeting.
138SamSon international PlC annual report 2013/14
nOtes
139SamSon international PlC annual report 2013/14
FOrMof proxy
*I/We………………………………………………………………………of…………………………………………………………………………being*ashareholder/shareholdersofSAMSONINTERNATIONALPLC,doherebyappoint…………………………………………………………………………of……………………………………………………orfailing*him/her*
Dr.DSRajapaksa ofColomboorfailinghim*Mr.DKRajapaksa ofColomboorfailinghim*Mr.DMRajapaksa ofColomboorfailinghim*Mr.DRRajapaksa ofColomboorfailinghim*Mr.CCumaratunge ofColomboorfailinghim*Mr.BLPJayawardena ofColomboorfailinghim*MrTKBandaranayake ofColomboorfailinghim*MrGHAWimalasena ofColomboorfailinghim*Mr.DGPSAbeygunawardana ofColombo
as*my/ourProxytorepresentme/us*,tospeakandvotefor*me/uson*my/ourbehalfattheTwentySecondANNUALGENERALMEETINGOFTHECOMPANYtobeheldon19September2014at2.00p.m.andatanyadjournmentthereof,andateverypollwhichmaybetakeninconsequencethereof. FOR AGAINST
1. ToreceiveandconsidertheAnnualReportoftheBoardofDirectorsontheaffairsofCompanyandtheFinancialStatementsfortheyearendedended31stMarch2014andtheReportoftheAuditorsthereon.
2. Tore-electMr.DRRajapaksewhoretiresbyrotationintermsofArticle88(i)oftheArticlesofAssociation,as a Director of the Company.
3. Tore-electMr.TKBandaranayakewhois71yearsofage,asaDirectoroftheCompanyandtoadoptthefollowingresolution:-
“ItisherebyresolvedthatMrTKBandaranayakewhois71yearsofagebeandisherebyre-electedasaDirector of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act No.07of2007thattheagelimitof70yearsreferredtoinSection210oftheCompaniesActshallnotapplytoMrTKBandaranayake.”
4. Tore-electMr.GHAWimalasenawhois73yearsofage,asaDirectoroftheCompanyandtoadoptthefollowingresolution:-
“ITISHEREBYRESOLVEDTHATMr.GHAWimalasenawhois73yearsofagebeandisherebyre-electedas a Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act,No.7of2007thattheagelimitof70yearsreferredtoinSection210oftheCompaniesActshallnotapplytoMr.GHAWimalasena.”
5. Tore-appointMessrsHLBEdirisinghe&Co.CharteredAccountantsasAuditorsoftheCompanyfortheensuingyearandtoauthorizetheDirectorstodeterminetheirremuneration.
6. ToauthorizetheDirectorstodeterminedonationsfortheyearending31stMarch2015anduptothedateofthenextAnnualGeneralMeeting.
Signedthis……………dayof………………………..TwoThousandandFourteen.
*Signature/s
Note: 1) *Pleasedeletetheinappropriatewords. 2) Instructions as to completion are noted on the reverse hereof.
140SamSon international PlC annual report 2013/14
INSTRUCTIONS AS TO COMPLETION
1. KindlyperfecttheFormofProxyafterfillinginlegiblyyourfullnameandaddressandsigninthespaceprovided.
Please fill in the date of signature.
2. AshareholderentitledtoattendandvoteattheMeetingisentitledtoappointaProxywhoneednotbeashareholder,
toattendandvoteinsteadofhim.Pleaseindicatewithan“X”intheboxesprovidedhowyourProxyistovoteoneach
resolution. If no indication is given, the Proxy in his discretion will vote as he thinks fit.
3. In the case of a Corporate shareholder, the Form of Proxy must be completed under its Common Seal, which should be
affixed in the manner prescribed by the Articles of Association.
4. If the Form of proxy is signed by an Attorney, the relevant Power of Attorney should also accompany the completed
Form of Proxy, in the manner prescribed by the Articles of Association.
5. ThecompletedFormofProxyshouldbedepositedattheRegisteredOfficeoftheCompany,No.110,KumaranRatnam
Road,Colombo02,notlessthanFortyEight(48)hoursbeforetheappointedtimefortheMeeting.
DSI ieñika iuqy jHdmdrhSh f;aud .S;h hq. hq. jkaokSh fú isßiem kkaokSh fú ishrg foa isßiem foa isysler jkaokSh jq ieñika mS;D kdufhka huq ch fú $$ ;drm;S ù È,S È,S ú;a l¿jr wdldfia ojiam;S ù ke.S ke.S huq fyg bÈjk f,dafla jdish muKla fidhd isà cd;sh msßfyhs .rd jeà foafig jev we;s foag reÑ cd;sl fy<lu mduq wms foai úfoafiys kdfñ /|s fPao fkdjk rkaodfï wms $$ ;rÕ je§ ú;a Wkqka mrojk ksmehqñ rK uËf,a mKg jvd ,eÈ ñksialug wm fkdue; ks.d fokafka W;aidyh Wla .ila fj;S tys wm kqÿgqj rila ke;S °il t<sfhka yuqj ks;S f,daflg mykla fjuqj wms iduQyslj ne|s mjqre bfñ ãtiawhs mqrjeisfhda wms $$
142SamSon international PlC annual report 2013/14
SAMSON INTERNATIONAL PLC.
Corporate Office:No. 110, Kumaran Rathnam Road, Colombo 02, Sri Lanka.
Tel : +94 11 4728800 Fax : +94 11 2440890 E-mail : [email protected] Web : www.samsonint.com