Sri Lanka Telecom

SamSon 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 countrys 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 Samson International Ltd. was incorporated as a Private Company on

14th October, 1988
1992- Ordinary shares of the Company were listed in the Colombo Stock
Exchange and became a public quoted company as Samson International Plc
on 24th July, 1992
1994 - Was awarded the first ISO 9001: 2008 quality management
certificate among the rubber-related product manufacturing companies in
Sri Lanka
2007- Invested in the first microwave continuous line machine in Sri Lanka.
(This is the only microwave machine in South Asia)
2009- Purchased all assets of Aksel Rubber Mat Company, Kalutara
2012 - Was awarded the Gold Export Award from the National Chamber of
Exporters of Sri Lanka
2013 Was awarded the Gold Export Award from the National Chamber of
Exporters of Sri Lanka for the second consecutive year when the Company
celebrated its Silver Jubilee
2014- Purchased assets of Okta PVC Lanka (Private) Ltd., Baddegama, and
stepped into manufacturing PVC products
cOntents
Page
1)
Financial highlights
01
2)
Our Corporate Vision, Mission, Values and our Aim
02
3)
Chairmans review In English
03 - 06
4)
Chairman s review in Sinhala
07 - 09
5)
Managing Directors operational review
10 - 13
6)
Corporate information
14 - 15
7)
The Board of Directors
16 - 17
8)
Profiles of Directors
18 - 19
9)
Executive management
20 - 23
10)
Management discussion & analysis
24 - 52
11)
Corporate governance
53 - 58
12)
Risk management
59 - 64
13)
Report of the Board of Directors
65 - 70
14)
Statement of Directors responsibilities
15)
Audit Committee Report
16)
Remuneration Committee Report
17)
Financial Review
75 - 76
18)
Auditors Report
77
19)
Financial Statement
78 - 107
20)
Sustainability Report
108 - 121
21)
Global Reporting Initiative
122 - 126
22)
Investor Information
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)
Glossary of Financial Terms
135
28)
Notice of the AGM
136
29)
Direction to the venue of the AGM
137
30)
Notes
138
31)
Form of Proxy
71
72 - 73
74
Enclosed
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 (Rs. 000)
Finance Cost (Rs. 000)
80,000
25,000
64,841
21,922
60,000
40,000
17,161
20,000
15,000
19,123
(20,000)
20,000
51,077
(7,608)
2009/10
2010/11
2011/12
10,106
2012/13
2013/14
5,000
(40,000)
3,780
(55,980)
(60,000)
(80,000)
2009/10
2010/11
2011/12
2012/13
140
120
5.31
117.00
102.87
104.00
88.27
80
2013/14
Fixed Asset Turnover Ratio (Times)
Net Assets Per Share (Rs.)
100
9,900
10,000
4.95
91.75
5.45
7.71
3.44
60
40
20
-
2009/10
2010/11
2011/12
Samson international PLC Annual Report 2013/14
2012/13
2013/14
2009/10
2010/11
2011/12
2012/13
2013/14
Financial
Highlights
2013/14
2012/13
Variance
Operating Results
Revenue
Rs. 000
952,561
973,858
(21,297)
(2)
Profit before tax
Rs. 000
64,841
51,077
13,764
27
Tax on profit
Rs. 000
8,491
(4,438)
12,929
291
Profit after tax
Rs. 000
56,350
55,515
835
1.5
in US $ 000
4,753
5,235
(482)
(9)
Rs. 000
227,496
199,631
27,865
14
times
18.15
6.15
ROCE
12.5
13.8
(1.3)
Gross profit to Sales
15.2
15.3
(0.1)
Rs /month
58,512
55,085
3,427
6.2
Nos.
324
302
22
7.3
Dividend cover
times
7.3
7.2
Current ratio
times
2.37
2.39
6.8
13.2
(6.4)
Finance cost
Rs. 000
3,780
9,900
(6,120)
Financial Investments
Rs. 000
50,354
50,354
Total assets
Rs. 000
654,125
593,108
61,017
10.2
Cash generated from operations
Rs. 000
136,204
17,785
118,419
666
Dividend per share
Rs.
2.00
2.00
Market price per share - Closing
Rs.
88.20
82.20
6.00
Earnings per share
Rs.
14.64
14.43
0.21
1.5
Net assets per share
Rs.
116.82
104.18
12.64
12
Number of shares issued
Nos.
3,847,974
3,847,974
Number of Shareholders
Nos.
1,125
1,127
(2)
(0.2)
Market capitalization
Rs. 000
339,391
316,303
23,088
Shareholders Funds
Rs. 000
449,558
400,904
48,654
12
times
6.02
5.69
0.33
5.8
Exports earnings
Value additions
Interest cover
Value additions per employee

Manpower
Financial Position
Gearing
(62)
Shareholder information
Price earnings ratio
Our cOrpOrate
Vision, Mission, Values and aim

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
global market by utilizing modern technology while providing optimum
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.
We are moving on beyond our Silver Jubilee, determined to expand our polymer products
range and invest in modern technology aimed at versatility.
We also continue to be committed to contribute to the national economy, serving the rural
areas in the Southern Province by using local raw materials, opening direct employment
avenues for neighbouring villages, generating foreign exchange and nurturing our
indigenous heritage as a socially responsible corporate citizen while aiming at versatility and
moving forward in the direction of our Vision.
cHairMans
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 identified. In view of this, we all have to
develop the Chinese, Japanese and South Asian
markets
t is my pleasure to present the Annual Report of Samson

International Plc for the year ended 31st March 2014. As
you are aware, Samson International Plc was incorporated on

14th October 1988 and we celebrated our silver jubilee this
financial year.
Global Economic outlook

In 2013, the global economic growth was estimated at 3
percent which is a marginal drop from 3.2 percent recorded
in 2012. As projected in the IMF forecast, global growth will
strengthen from 3 percent in 2013 to 3.6 percent in 2014 and
3.9 percent in 2015.
World Economic Output Growth (%)

%
6
5.2
5
3.9
3.9
3.6
3.2
1
0
2010
2011
2012
2013
2014
2015
Source : IMF World Economic Outlook Report of April 2014
cHairMans statement (contd...)

%
According to IMF World Economic Outlook Report of April
Economic Growth (%)

Source : World Economic
Outlook Apr 2014
16
14
2014, the USA, Euro area ( Germany, France, Italy and Spain),
Emergind and Devoloping Asia

India
China
12
10
Japan, UK and Canada have advanced economies. The
economic activities in these countries struggled in the first half
6
4
2
but grew firmly 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
0
2005
-2
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
-4
-6
2.2 percent in 2014. Key drivers of such growth will be a

reduction in fiscal tightening (except in Japan) while pursuing
When we look at the foreign currency trends, for some
accommodative monetary measures . Growth will be strongest
currencies the foreign exchange market was highly volatile. The
in the United States at about 2.8 percent while in the Euro area
Japanese Yen recorded 18.1 percent depreciation against the
growth is projected to be positive but varied area depending on
dollar where currencies such as the Euro, Sterling Pound and

the South African Rand signifi cantly appreciated against the
the extent of debt and financial fragmentation.
dollar. Inflation remained stable in many economies in 2013

while a few developed economies faced deflationary pressures.
%
6
United States
Economic Growth (%)

Outlook Apr 2014
Japan
Advanced Economies
0
2005
Sri Lankan Economic Outlook

The Sri Lankan economy recorded a 7.3 percent growth in
2006
2007
2008
2009
2010
2011
20
11
2012
2013
2014
2015
2013 while inflation remained at single digit levels for the fifth
-2
consecutive year, steadily declining to midsingle digit levels
-4
by the end of 2013. Though remaining at a low level of 4.4
-6
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. Inflation trended

Economic Growth (%)
Outlook Apr 2014
Euro Area
downward in 2013, averaging 6.9% in the year. Economic
France
Germony
growth was broad based with contributions from all sectors,
0
2005
supported by favorable weather conditions.

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
-2
The Sri Lankan economy was projected to accelerate further
-4
in the medium term to an annual growth rate of 8 percent.
-6
This economic growth target is expected to be supported by
Economic activity in many emerging market economies ( i.e.,

China, India, Indonesia, Malaysia, Philippines, Thailand and
Vietnam) has been disappointing in a less favorable external
financial 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
economies was 4.7 per cent, which is a 0.2 per cent drop
infrastructure expansion in transport, telecommunication, ports

and growth of tourism. The services sector made the largest
contribution to growth in 2013. Rapid growth in wholesale
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
from the previous year. According to IMF, in China growth is
maintain agriculture growth at a relatively favourable 4.7%.
projected to remain at about 7.5 percent in 2014.
When we look further, food infl ation was at about 12% during
the first quarter as the drought late in 2012 had disrupted
domestic food supplies, but then dropped markedly to 0.9%
in February 2014. Non-food infl ation was also lower over the
year but increased to 7.1% in January 2014.

Industry Performance
12.0
The rubber industry of the country faced two major challenges
10.0
during the year. Firstly, the significant decline in production was

8.0
due to a drop in tapping days during the adverse weather in the
6.0
fi rst nine months. Rubber production declined by 14.2 percent
4.0
compared to 2012. Secondly, declining world market prices of
2.0
natural rubber due to high stocks levels maintained in China

and Japan, which affected rubber prices in Sri Lanka too.
0.0
2009
2010
Agriculture
2011
Industry
2012
2013
Services
GDP
Source :Central Bank Annual Report 2013
The 2013 fiscal deficit 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
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.
government debt to GDP fell to 78.4% in September 2013

from 79.1% in 2012.
Future prospects for the industry will be more favourable with

the governments master plan in respect of the rubber industry
There was a turnaround in external demand during the

second half of the fi nancial year 2013/14 with the gradual
improvement in the advanced economies including the United
States and the European Union, which are Sri Lankas major
export destinations. Currently, more than half of Sri Lankan
exports are still centred on the US and EU markets. We would
be severely affected if the economies of both the US and the
EU decline. To minimize the risk, the right mixture of exports
has to be identified. In view of this, we have all to develop the
Chinese, Japanese and South Asian markets.
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.
Companys Performance
During the year ended 31st March 2014, the Company
recorded a turnover of Rs.953mn as against Rs. 974 mn in
the previous year. The reduced turnover was caused by the
significant depreciation of the currency of India, South Africa
and Japan, our customers. However, the profit before taxation
With the fl exible exchange rate policies of the government

the rupee remained less volatile against the dollar and the
currencies of some of the major emerging economies. By the
end of 2013, the rupee had exchanged at a rate of 130.75
against the US dollar recording a depreciation of 2.75 percent
compared to the previous year.
In 2013, many key infrastructure projects were completed,
namely, the countrys second international airport, harbour
and port development projects, the Expressway and highway
development projects, the Northern railway project and power
in the current year is Rs. 64.8 mn as compared to Rs 51.0 mn

in the previous year, which is an increase by 27%.
We continue to manufacture to the international standards
required of many ISO certified products. In the future, we
will focus on widening our global presence with a wide
product range. We will continue to focus on high contributing
products. Wastage and scrap levels will be further minimized
with proper controls. We need to further improve our quality
levels and delivery times from their current position in order to
differentiate our products from Chinese products.
projects, with some more due to be completed in the future.

I am happy to inform you that Samson International Plc
purchased the assets of Okta PVC Lanka ( Pvt ) Ltd. on 14th
July 2014 by moving forward in the direction of our Vision. We
will be able to widen our product range further with the PVCrelated products.
Appreciation
As 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.
Moving forward in the
I would also like to thank our bankers and all our suppliers for
their support. We deeply appreciate our shareholders for their
direction of our Vision
faith in our Company and we assure them of a bright future.
Dividends
The Board of Directors decided to recommend a dividend of
Rs. 2.00 per share for the year under review ( Rs. 2.00 per share
in 2012/13).
Dr D. S. Rajapaksa
Turnover Last Ten Financial Years (Rs.Mn)
Chairman
1200
Colombo
1000
800
1st August 2014
600
Turn Over (Rs. Mn)
Tu
400
200
0
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
ManaGinG
Directors 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
e, Samson International Plc, cater to sophisticated

international markets as well as the local market.
However, we continued to maintain satisfactory profit 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.
Profit Before Tax (Rs.Mn)
PBT (Rs.Mn)
P
PB
80
60
40
20
0
-20
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
-40
-60
-80
With the Katunayaka-Colombo highway now open , our

customers can reach us within two hours from the Katunayaka
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
10
ManaGinG Directors Operational review (contd...)

minutes from Matara. The governments massive infrastructure
1994, we have enjoyed ISO status. Further, we have been
projects certainly help our business.
awarded British Standard ( BS 1970:2006), TUV Certifi cation

and FSC Certifi cation for hot water bottles. We also have the
We are planning to become
Fire Retardant Certifi cate for rubbers mats and fl oorings and
the Electrical Resistant Certifi cate for rubber mats. All raw
materials are used to manufacture our products by conforming
bigger and bigger
to the Reach regulations of Europe.
We are the fi rst
year by year
rubber- related product
During the year we improved many aspects of operational

effectiveness by investing in advanced technology, improving
our working capital, minimizing waste, maintaining higher
levels of capacity utilization and controlling all overheads.
In the financial year under review, we invested in a fully
manufacturing company to
receive the ISO 9001:2008
automated fl ash less press for V strap, a mill , another press
Quality Management
line for hot water bottles and an additional cutter for jar
sealing rings. We continue to invest more and more in
Certificate
Research & Development. Our Group signed an agreement

with the Polymer Unit of the University of Moratuwa for
research activities for 3 years by investing Rs. 15 mn from
Above all, our main focus is contributing to the rural
which the major contribution will come to Samson Intentional
communities by offering them many more employment
Plc. We are looking forward to the future with much positive
opportunities and uplifting their living standards. We as a
hope. We will continuously engage in product development,
company are committed to protecting our cultural heritage
process automation and creating synergies. We are planning
and customs. Our years of experience prove that customs and
to become bigger and bigger year by year.
rituals tie generations with bonds that cannot be broken.
Our working capital cycle is as follows:
We are pleased to inform you that your Company received a
2013/2014 2012/2013 Variance
couple of awards during the year: fi rstly National Chamber

of Commerce Gold Awards for the last two consecutive years
Debt Collection Period (Days)
65
79
(14)
RM Holding Period (Days)
23
18
Certifi cate of Recognition awarded by the Institute of Chartered
WIP Holding Period (Days)
14
11
Accountants was received for last years Annual Report in the
FG Holding Period (Days)
19
58
(39)
Credit Settlement Period (Days)
(54)
(38)
(16)
Cash Operating Cycle (Days)
67
128
(61)
than 40 types of rubber products under four different
Operating Cycle (Days)
56
87
(31)
product segments.
Our measures to improve quality in compliance with
in recognition of our export growth and volume; secondly a
manufacturing category.
As you are aware, Samson International Plc produces more
a)
international standards and continuous in-house and
Medical Items: These include hot water bottles, finger

exercises and power web.
overseas laboratory tests will ensure a solid market share
b)
Food Grade Items: These include jar sealing rings.
for our products. We have achieved signifi cant international
c)
Household & Industry Items: This segment includes
recognition in terms of product quality. We are the fi rst
rubber mats ,rubber flooring and rubber hoses,
rubber- related product manufacturing company to receive
continuous rubber rolls, bath mats, staircase mats, vehicle
the ISO 9001:2008 Quality Management Certifi cate. Since

11

mats, entrance mats, industry mats and also specialty mats
The segmental profit analysis is given below.
such as fire retardant mats, oil resistant mats, antistatic

4)
Operating Profit (Rs. Mn.)
mats and fabric mats.
35
Other products: These include beadings, footwear
30
30
components, road humps, mud flaps, D- fenders and
31
25
other items which do not belong to the above three

20
categories.
15
2013
2013/14
2012/13
12
10
10
9
5
4
Food Grade Items
Medical Items
Others
Household Items
Turnover Mix in (Rs. Mn.)
2013/14
2012/13
209.49
213.67
330.38
348.12
286.66
138.55
291.25
108.27
Business Segment
Export Sales
Local Sales
Profit/(Loss) on Fixed Asset Disposal
Other Income
Segmental Expense
Operating Profit/(Loss)
House Hold Item

Ho
Food Grade Item

Foo
other
oth
Medical Items
2013/14
2012/13
Food Grade Items

2013/14
2012/13
Household Items
2013/14
2012/13
2013/14
2012/13
Company
2013/14
2012/13
Rs.'000
Rs.'000
Rs.'000
Rs.'000
Rs.'000
Rs.'000
Rs.'000
Rs.'000
Rs.'000
Rs.'000
208,861
635
209,496
82
472
210,050
212,328
1,343
213,671
291
328
214,290
284,583
2,081
286,664
81
472
287,217
285,912
5,338
291,250
291
214
291,755
67,717
40,561
108,275
88
472
108,835
99,166
39,389
138,555
292
24
138,871
52,092
296,034
348,126
81
535
348,742
58,635
271,747
330,382
292
16
330,690
613,250
339,311
952,561
332
1,951
954,844
656,041
317,817
973,858
1,166
582
975,606
(200,558)
(201,821)
(256,869)
(261,225)
(105,064)
(136,291)
(344,589)
(322,209)
(907,080)
(921,546)
9,492
12,469
30,348
30,530
3,771
2,580
4,153
8,481
47,764
54,060
12
Medical Items
Me
Others

We had a sales growth of 7% from local sales. However,
Currently we produce more than 40 products out of rubber
export sales decreased by 6.5 %. During the year overheads
using moulding , extruding, microwaving and injection
were controlled effectively. Finance costs decreased by 62%
moulding. Your company has now reached versatility in
from Rs. 9.9 mn in the previous year to Rs. 3.7 mn in the
manufacturing rubber products. In the future we will focus
current fi nancial year. We invested Rs 50.3 mn in Treasury Bills,
on reaching versatility in other polymer products such as
Tax free Debentures and Fixed Deposits this year. Administration
PVC too. I am happy to inform you that Samson International
overheads and selling and distribution overheads too are under
Plc purchased the assets of the Okta PVC Lanka ( Pvt ) Ltd.
control. Exchange gain income increased from Rs 6.1 mn in
on 14th July 2014 by moving forward in the direction of
the previous year to Rs 17.7mn in the current year, which was
our Vision. We will be able to widen our product range and
mainly due to the favourable exchange rate of the Euro that
turnover further when we add to it PVC-related products.
prevailed during the year. However, we also lost some revenue

due to unfavorable exchange rates that prevailed in Japan,
I would like to thank all the members of management and
India and South Africa in the same period. The net profit
every employee of the company for their dedication and
before tax increased by 27% to Rs. 64.8 mn in the current
commitment extended to the company during the year.
fi nancial year compared to Rs.51.0mn in the previous year.
We invested Rs 50 mn
in Treasury Bills, Tax free
Debentures and Fixed
D. K. Rajapaksa
Managing Director
Colombo
1st August 2014
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.
13
cOrpOrate
information
Name of the Company
: Samson International Plc
Legal Form
: A public quoted company with limited liability, incorporated on 14th October 1988 and reregistered under the Companies Act No. 7 of 2007 on 3rd September 2008.
Company Registration number
: PQ 192
Stock Exchange listing
: 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 to a public quoted company.
Principal line of business
: Manufacture and export of rubber-based products for the international and local markets.
Registered Office

: No. 110, Kumaran Ratnam Road , Colombo 02.

Te: (011) 4728800, Fax (011)2440890
Email: info@dsisamson.com
Galle Factory

: Akuressa Road, Bogahagoda, Galle.

Te (091) 3094469-72, Fax (091) 2224036
Email: info@samsonint.com
Kalutara Factory
: No. 57/B, Fullerton Industrial Zone, Nagoda, Kalutara.

Te (034) 5622688

Baddegama Factory
: Gilcroft Estate, Kiribathwila, Ampegama, Baddegama

(Purchased on 14th July 2014)
Te (091) 2293801, Fax (091) 2233020
Directors

Secretaries

: P W Corporate Secretarial (Pvt) Ltd.

No. 3/17, Kynsey Road, Colombo 08
Parent Company
: DSI Samson Group (Pvt) Ltd.
Auditors
: Messrs HLB Edirisinghe & Company

Chartered Accountants,
No. 45, Braybrook Street, Colombo 02.

Bankers

Dr D. S. Rajapaksa (Chairman)
Mr D. K. Rajapaksa (Managing Director)
Mr D. R. Rajapaksa
Mr D. M. Rajapaksa
Mr C. Cumaranatunge
Mr R. H. Nandajeewa (Resigned on 8/8/2013)
Mr G. H. A. Wimalasena
Mr T. K. Bandaranayake
Mr B. L. P. Jayawardena
Mr D. G. P. S. Abeygunawardana (Director/ General Manager) Appointed - on 8/8/2013 as Director
: Bank of Ceylon
Hatton National Bank
Commercial Bank
Nation Trust Bank
DFCC Vardhana Bank
Peoples Bank
15
tHe BOarD of Directors
5
7
16
4
2
1.
Dr. D. Samson Rajapaksa
2.
Mr. D. Kulatunga Rajapaksa
3.
Mr. D. Ranatunga Rajapaksa
4.
Mr. D. Mahinda Rajapaksa
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

17
prOFiles of the Directors

1. Dr. D. Samson Rajapaksa
4. Mr. D. Mahinda Rajapaksa
M.B.B.S (Cey), F.R.C.O.G. (U.K.), M.S. (S.L.)
B.Sc Eng. (Hons), MBIM, CEng, MIMechE (UK), FIE (SL)
Chairman
Non -Executive Director
Dr Samson Rajapaksa is a medical practitioner by profession
Mr. Mahinda Rajapaksa is a Chartered Engineer by profession
and counts over three decades of experience with DSI Group.
and has more than five years experience working as an
He serves as the Chairman of DSI Holdings (Pvt) Ltd. and is the
Engineer in UK and Sri Lanka.
Chairman of DSI Samson Group (Pvt) Ltd. He is also a Director

of D. Samson Industries (Pvt) Ltd., D. Samson and Sons (Pvt)
In addition to being a Director of Samson International Plc,
Ltd., and Samson Reclaim Rubbers (Pvt) Ltd.
Mr. Mahinda Rajapaksa is the Managing Director of Samson

(Exports) Ltd. and is a Director of DSI Samson Group (Pvt) Ltd.,
In addition to being on the DSI Samson Group (Pvt) Ltd.
D. Samson Industries (Pvt) Ltd. and several other subsidiary
Board, he is a Consultant Obstetrician and Gynecologist in the
companies of the DSI Samson Group.
private sector.

Dr. Samson Rajapaksa serves as a Committee Member of the

Young Members Buddhist Association and of the Sri Lanka
Medical Library.
Mr. Mahinda Rajapaksa has over 35 years of managerial

experience within the DSI Samson Group.
5. Mr. Chula Cumaranatunge

M.Sc. (Econ) (Lond.)
2. Mr. D. Kulatunga Rajapaksa
B.Sc (Hons) (Cey)

Managing Director
Mr Chula Cumaranatunge has over 28 years experience in

the rubber industry.
Mr Kulatunga Rajapaksa is the Managing Director of DSI

Samson Groups (Pvt) Ltd. He has over 48 years of experience
in the manufacture of footwear and rubber products.

He has served as a Council Member of several universities.
Mr Chula Cumaranatunge is also a Director of Glovetex (Pvt)

Ltd. and of Central Rubber (Pvt) Ltd.
6. Mr. G. H. Ananda Wimalasena
Mr Kulatunga Rajapaksa is a past president of the National
B.Sc, Higher Diploma in Management (London College of
Chamber of Exporters of Sri Lanka and also was the past
Printing, U.K.)
president of the Sri Lanka Association of Manufacturers and
Independent, Non Executive Director
Exporter of Rubber products and is the current president of

the Sri Lanka Footwear & Leather Products Manufacturers
He is also the Chairman of the Wellassa Rubber Company
Mr Ananda Wimalasena was the Founder-Managing Director

of Asiri Hospital Group of Companies from 1980 to 2006.
Association.

Mr Ananda Wimalasena has experience and extensive
Limited and also a Director of the Mawbima Lanka
exposure in Management and Health services. He also serves
Foundation.
as a Director of Hemas Hospitals (Pvt) Ltd. He is Chairman in

ITMC (Pvt) Ltd. and also Chairman of the Risk Management &
3. Mr. D. Ranatunga Rajapaksa

Dip. In Technology
Non- Executive Director
Audit Committee of Hemas Hospitals (Pvt) Ltd.
7. Mr. Tissa K. Bandaranayake

B.Sc. (Cey), FCA
Independent, Non Executive Director
Mr Ranatunga Rajapaksa is the Managing Director of

Samson Rubber Industries (Pvt) Ltd., a company that
specializes in the designing, manufacturing and exporting
Mr Tissa Bandaranayake has more than 46 years commercial
of tyres and tubes. He is also the Managing Director of
and professional experience and was a Senior Partner of Ernst
Mountspring Water (Pvt) Ltd., Samson Reclaim Rubbers Ltd.
& Young from where he retired after 27 years, having serviced
Samson Rubber Products (Pvt) Ltd., Samson Bikes (Pvt) Ltd.,
a large portfolio of clients, both local and multinational in
DSI Tyre India (Pvt) Ltd. and several other subsidiary companies
various industries.
of the DSI Samson Group.

He currently serves as a Director Laugfs Gas Plc, Overseas

Mr. Ranatunga Rajapaksa plays a major role in expanding
Realty (Ceylon) Plc, Renuka Holdings Plc, Renuka Shaw
the Groups overseas business and has more than 43 years of
Wallace Plc, Micro Holdings (Pvt) Ltd., Harischandra Mills
experience with DSI Group.
Plc, Waters Edge Ltd. and Nawaloka Hospitals Plc. He also
18
prOFiles
of the Directors
(contd...)
serves as an Advisor / Consultant to the Board of Directors of

Noritake Lanka Porcelain (Pvt) Ltd.
9. Mr. D. G. Priyantha S. Abeygunawardana

MBA, LLM, LLB, FCA, FCMA, FCCA, MCIM, Attorney-at- Law
Director / General Manager
He serves as Chairman of the Quality Assurance Board

established by the Institute of Chartered Accountants of
Mr. Priyantha Abeygunawardana is a triple-qualified
Sri Lanka comprising senior members of the accounting
Accountant holding the fellowship of Chartered, CIMA
profession as well as representatives of public sector
and ACCA. He also holds two Masters degrees in two
regulatory bodies such as the SEC, SLAASMB, CBSL, etc.
different fields, namely, MBA from the University of Sri

Jayewardenepura specializing in Finance and LLM from
Mr Tissa Bandaranayake is a Past Chairman of the Audit
University of Colombo in Company Law, Labour Law and
Faculty of the Institute of Chartered Accountants of Sri Lanka.
Banking Law.
8. Mr. B. Lalith P. Jayawardena
He obtained his LLB degree from the Open University of Sri
MBA, BCom (Sp)
Lanka and took his oaths as an Attorney-at- Law in 2004
Executive Director
having passed the requisite examinations held by the Sri Lanka

Law College.
Mr Lalith Jayawardena has over 24 years experience in

Samson International Plc and has served the company from its
He is also member of Chartered Institute of Marketing of UK.
Previously he was at Ford, Rhodes, Thornton & Company,
inception. He is also a Director of Samson Group Corporate

Services (Pvt) Ltd., Samtessi Brush Manufacturers (Pvt) Ltd.
and Micro Minerals (Pvt) Ltd., a subsidiary of the Richard Peiris
Hayleys, Abans and finally at Richard Piers Exports Plc where
Group. In addition, Mr Lalith Jayawardena serves as the Group
he worked as General Manager for six years. He joined
Treasurer of the DSI Samson Group.
Samson International Plc in February 2012.
He is the Secretary of the Sri Lanka Association of

Manufacturers & Exporter of Rubber Products (SLAMERP). Mr
Lalith Jayawardena is also a member of the Rubber Advisory
Council of the Sri Lanka Export Development Board and of
the Ministry of Industry and Commerce. He is a past Treasurer
of the Plastic and Rubber Institute of Sri Lanka.
Analysis of Directors Professional Background:

Professionally qualified area
No. of Directors on the Board
Medical
Science
Engineering
Finance
Economics
Law
Marketing
Management
19
executiVe
Management
Mr. Kulatunga Rajapaksa
Mr. Priyantha Abeygunawardana
B.Sc (Hons) (Cey)
MBA, LLM, LLB, FCA, FCMA, FCCA, MCIM, Attorney-at -Law
Managing Director
Director/ General Manager
Research & Development
Mr. Sunil Kariyawasam
Mr. Wimal Siriwardana
Mr. P K Sameera Tharanga
Dip. in Rubber Technology (NDT)
Dip. in Rubber Technology,
B.Sc Engineering (Hons)
Deputy General Manager Research
Certificate in Hydraulic Technology
Process Engineer
& Development
Executive Research and Development
20
executiVe
Management
(contd...)
Marketing
Mr Naveendra Kumara
MBA, MAAT, Dip in Business Mgt.
Manager - Marketing
Mr. Sanjeewa Weerakkodi

BA ( Hons) (Economics), Dip in
Marketing ( UK)
Assistant Manager - Marketing
Human Resources
Supplies
Ms. Piumangani Seneviratne
Ms. Nishanthi Padmakumari
BMS (Sp), Dip. in Mgt
Dip. in Human Resources Management
Manager - Supplies
Executive - Human Resources
Production
Mr. M. A. P. Janakantha
Dip. in Engineering Science, Dip. in Rubber
Technology
Executive- Production, Galle Factory
Mr. Asanka Dimuth Edirisinghe

Dip. in Engineering Science
Executive- Production, Kalutara

Factory
21
executiVe
Management
(contd...)
Quality Assurance
Engineering
Mr. Namal Nishantha
Mr. Nilantha Jayalal
B.Sc, Dip. in Rubber Technology
Dip. in Technology
Executive- Quality Assurance
Executive Engineering
Finance
Welfare
Mr. Thilina Promod Kahanda Gamage
Mr. G. Paranavithana
B.Sc Finance Management (Sp)
Dip. in Commerce
Executive- Finance
Executive- Welfare
Analysis of Educational and Professional qualifications of the Executives :

CATEGORY
Number of educational
Number of professional
qualifications
qualifications
Masters Degrees
Bachelors Degrees
Diplomas
11
Professionally qualified in Accountancy
Professionally qualified in Law
Professionally qualifi ed in Marketing

Total
22
22
executiVe
Management
(contd...)
23
cOrpOrate
Governance
Board of Directors gives its top priority to

attain a high standard of corporate governance
practices as specified by regulatory bodies
he Board recognizes the interests of the Companys

shareholders, employees, customers, suppliers, consumers,
and communities in which it operates and who are all essential

for the Companys success. The Companys 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.
53
cOrpOrate Governance (contd...)

Board of Directors
To protect the untarnished reputation of the company, the

Board ensures that its members and employees maintain the
The Board comprising professional and experienced business

leaders of high repute is entrusted with, and is responsible for
highest possible ethical standards.
providing strategic direction to the company in an honest, fair,

diligent and ethical manner. The Board of Samson International
The Board has delegated responsibility to the Managing

Director who is also the Chief Executive Officer for planning
Plc comprises three executive directors and six non-executive

directors. Their profiles appear on pages 18 & 19 of this Annual
and guiding the business towards meeting set objectives. There

is a clear demarcation of responsibilities and authority between
Report.
the Chairman and the Chief Executive Officer/ Managing
Role of the Board of Directors
Director, which ensures a balance of power.
The Board of the Company is responsible for formulating
Appointment & Re-election of Directors
company policy and overall business strategy. The
The Board of Directors collectively decides on the new
implementation of policy and strategy is done within a
appointment of directors as per the Articles of Association of
framework that requires compliance with existing laws and

regulations as well as establishing best practices in dealing with
the Company. Formal and transparent procedures are followed

in making such appointments. The Annual General Meeting
employees, customers, suppliers and the community at large.
is considered to be the ideal forum for this, with sufficient
It is the Companys policy to hold regular Board meetings.
biographic data on directors seeking appointment or re-election
Information relevant to these Board meetings was distributed
accompanying their names so that shareholders can make
in a timely manner with ample time given for members to
informed voting decisions.
assimilate and analyze information in order to make wellinformed decisions at Board meetings. In the furtherance of
Board Meetings
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,
The Board held five meetings during the period under review
and their attendance is given below.
investments, acquisitions and disposal fixed assets and annual

capital & revenue budgets.
Name of Director
Status
27th May
08thAugust 11thNovember
13thFebruary
26thMay
No of
2013
2013
2013
2014
2014
Attendance
Dr D S Rajapaksa
NE
5/5
Mr D K Rajapaksa
4/5
Mr D M Rajapaksa
NE
5/5
Mr D R Rajapaksa
NE
5/5
2/2
Mr C Cumaranatunga
(Based in Germany)
NE
0/5
Mr T K Bandaranayake
NE/I
5/5
Mr G H A Wimalasena
NE/I
3/5
Mr B L P Jayawardena
2/5
Mr. D G P S Abeygunawardana
(Appointed on 8/8/2013)
E
4/4
Mr R H Nandajeewa
(Resigned on 8/8/2013)
D
irectors attendance at the Board Meetings of Samson International PLC
Note 1: Under status column, E = Executive, NE= Non- Executive and I = Independent
Note 2: Mr Cumaranatunge is based in Germany and all proceedings of the Board meetings have been sent to him.
54

Committees
Specific responsibilities have been delegated to the Board Committees, namely, Audit Committee and Remuneration Committee.
Audit Committee
The Audit Committee consists of three Non- Executive Directors:
Mr T. K. Bandaranayake Chairman
Independent, Non- Executive Director
Mr G.H. Wimalasena
Independent, Non- Executive Director
Mr D. M. Rajapaksa
Please refer the Audit Committee Report on pages 72 and 73 for the functions and responsibilities of the Committee. The Internal
Audit function of the Company is carried out by Ms. Ernst & Young, Chartered Accountants. They directly report to the Chairman of
the Audit Committee. The Audit Committee Charter gives guidelines on audit-related matters.
Name of Director
Status
27th May
13thFebruary
26thMay
No of
2013
2013
2013
2014
2014
Attendance
(Chairman)
NE/I
5/5
Mr G H A Wimalasena
NE/I
3/5
Mr D M Rajapaksa
NE
5/5
Attendance of Members of the Audit Committee
Remuneration Committee
The Remuneration Committee, appointed by the Board of Directors, consists of three Non -Executive Directors:
Mr G. H. A. Wimalasena Chairman
Independent Non-Executive Director
Mr T.K. Bandaranayake
Independent Non -Executive Director
Mr D.M. Rajapaksa
They recommend the remuneration packages of Directors, Managers and Executives of the Company.
Compliance and Disclosure of Information

The Companys compliance with its statutory obligations is regularly monitored by Management and a Statement of Compliance
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
Exchange and Companies Act, 7 of 2007. Maximum information is provided to shareholders and full disclosure is made subject only
to consideration of any sensitive information, which could directly impact on the business of the Company.
The Statement of Compliance under Section 7.10 of the rules of Colombo Stock Exchange on Corporate Governance is shown in the
Table below. All these mandatory provisions have been fully complied with.
55

CSE Rule No.
Subject
Applicable Requirement
Compliance Status
7.10.1(a)
Non- Executive Directors
At least 1/3 of the total number of
Compliant
Directors should be Non-Executive Directors
6 out of the 9 Board
Non- Executives.
7.10.2(a)
Independent Directors
2 or 1/3 of Non-Executive Directors,
Compliant
whichever is higher should be independent
There are 2 Independent
members are
Directors and 6

Non- Executive Directors.
7.10.2(b)
Independent Directors
Each Non-Executive Director should submit
Compliant
a declaration of independence/
Independence of Directors
non-independence
has been determined in

accordance with CSE.
7.10.3(a)
Disclosure relating to Directors
a. The Board shall make a determination
Compliant
annually as to the independence or
All Independent,
non independence of each
Non-Executive Directors
Non-Executive Director
have submitted declarations

for their independence.
b. Names of independent Directors
Compliant
should be disclosed in the Annual Report
This has been disclosed.
7.10.3(b)
In the event a Director does not qualify as
Not Applicable
independent, but if the Board is of the opinion

that the Director is nevertheless independent,
shall specify the criteria not met and the basis

for the determination in the Annual Report
7.10.3(c)
A brief resume of each Director should be
Compliant
included in the Annual Report including
Please refer the Profile of the
the area of expertise
Directors in the Annual

Report on pages 18, 19.
7.10.3(d)
Upon appointment of a new Director
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
A listed Company shall have a
Compliant
7.10.5(a)
Composition of Remuneration
Shall comprise Non-Executive Directors,
Compliant
Committee
a majority of whom shall be independent
2 out 3 Non-Executive
directors are independent.
56

CSE Rule No.
Subject
Compliance Status
7.10.5(b)
Report of Remuneration
The Remuneration Committee shall
Compliant
recommend the remuneration

of Chief Executive Officer and
Executive Directors
7.10.5(c)
Disclosure in the Annual Report The Annual Report should set out:
relating to Remuneration
a. Names of Directors comprising
Committee
the Remuneration Committee
Compliant
b. Statement of remuneration policy
Compliant
c. Aggregate remuneration paid to
Compliant
Executive & Non-Executive Directors
Pl see page 74
7.10.6
Audit Committee
The Company shall have an Audit Committee Compliant
Rule No.
Subject
Compliance Status
7.10.6.(a)
The composition of
a. Shall Comprise Non-Executive Directors,
Compliant
Audit Committee
a majority of whom can be independent
2 out 3 Non-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
7.10.6.(b)
Audit Committee functions
Chairman is a member of
One member should be a member of a
Institute of Chartered
professional Accounting body
Accountants of Sri Lanka
Overseeing of the
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
requirements, information requirements of
Compliant
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

controls and risk management are
Compliant
adequate, to meet the requirements of
effectiveness of internal
the Sri Lanka Auditing Standards.
control and risk

management,
57

Rule No.
Subject
Compliance Status
(iv) Assessment of the independence and
Compliant
performance of the external auditors.

independence and
performance of the external
auditors.
(v) Make recommendation to the board
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)
Disclosure in the Annual Report a. Names of Directors comprising the Audit

relating to Audit Committee
Compliant
Committee.
b. The Audit Committee shall make a
Compliant
determination of the independence of

the Auditors and disclose the basis
for such determination.

c. The Annual Report shall contain a Report
Compliant
of the Audit Committee setting out the

manner of compliance of the function.
Pl see page 72, 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
The Internal Audit function of the Company continues to be outsourced and is being carried out by Ms Ernst & Young and
Company, Chartered Accountants. They assess the strengths and weaknesses of the Companys 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 Companys assets, physical or otherwise, and ensure that proper records of each Companys 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 Concern
The Directors have continued to use the Going concern basis in the preparation of Financial Statements, after careful review of the
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 Board

P W Corporate Secretarial (Pvt) Ltd. acts as Secretaries to the company. They advise the Board on appropriate procedures for the
management of its meetings and duties, as well as the compliance of corporate governance in the Company.
58
risk
Management
The Company ensures the minimization of
risks by adopting many strategies for smooth
Company operations
he Risk Management Policy of Samson International

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.
We need to have an effective risk management system while
maintaining business flexibility. We will identify and assess
material risks associated with our business, monitor, manage
and mitigate these risks.
Managing business and financial risks is of fundamental
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 Companys 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
Reports are reviewed by the Audit Committee along with the
Risk Reports and Compliance Reports on a quarterly basis.
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.
59
risk Management (contd...)

The Risk Management Table below explains the type of risk, risk exposure, mitigating action and risk ranking of the Company.
Risk
Risk exposure
Mitigating action
Risk Ranking
Risk arising due to default of
This has been explained under Note 5 of the
Medium
payment. Higher credit risk may
Financial Statement on pages 92 and 93.
Financial Related risks

1) Credit Risk
adversely impact both liquidity

and profitability.
2) Operational Internal process failures,

process Risk
Medium
fraud, pilferage and breakdown Financial Statement on pages 92 and 93.

of internal controls
3) Financing
Inability to satisfy debt
and Interest
repayments and obtain
rate risk
the best interest rates.
4) Foreign

Depreciation of the rupee value
Exchange
and loss of exchange in
rate Risk
conversion in relation to export
Low
Medium
proceeds, import payments and

foreign currency debt
transactions.
5) Project
New projects / Capital
Management expenditures involve
Risks
high risks and uncertainties

in terms of delays and cost
overruns. Failure of major
projects will affect profitability,
capital structure and reputation.
60

Medium

Risk
Risk exposure
Mitigating action
Risk Ranking
Low
Non-Financial Related risks

6) Reputation
Adverse impact on the
a) Maintenance of highest ethical standards at
corporate image and brand
Risk
which is likely to diminish
all times in all business activities and make

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) The Company plays a corporate citizen role
7) Human
Risk of losing skilled and
a) Provide focused and structured training
Resources
trained human capital
to staff at all levels to aid personal
Risk
and professional development.
through CSR initiatives.

medium
b) Establish career development programmes and

succession plans in order to retain and motivate them.

c) Maintaining good relationships with employees

through regular dialogue.
d) Top priority is given to automation of manual work.
8) Technological Risk of low productivity and
a) Frequent visits of overseas exhibitions and continuous
Risk
high maintenance costs
medium
investment in modern machinery.
compared to the products
manufactured by competitors.
b) Continuous competitor analysis is carried out.
c) Investing in Research and Development activities

throughout the year.
d) Investing in ERP system, hardware and

developing software in-house.
9) Procurement Risk of non- availability
a) Establishing relationships with many global and local
Risk
of raw materials and
suppliers for raw materials and commodities
on a single supplier / brand.
excessive prices.
medium
in order to reduce over dependency
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.
61

Risk
Risk exposure
Mitigating action
Risk Ranking
10) Inventory
Risk of having non-moving
a) Identifying slow-moving stocks and sell them in
medium
Risk
stock
b) Re-order level and economic order quantity
a different market.
are established.
11) Risk of
Competition
Risk of losing our market
a) Ensuring high standards of quality in
share and sales growth to
High
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
foreign to attract new customers.
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) Make necessary investments to upgrade the facilities.

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) Carrying out Research and Development activities to

identify needs.
i) The provision of various value added services for
our key customers.
j) Manufacture PVC- related products where there is
12) Statutory and Risk of non-compliance

Regulatory
with changes in legal
Risk
and regulatory environment,

taxation, labour and other
high demand, e.g., PVC hoses
a) Create awareness of statutory obligations at all levels.

b) Seek advice from external consultants on
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.
62
Low

Risk
13) Fire and
natural
Risk exposure
Mitigating action
Risk Ranking
Fire and natural disasters can
a) Obtaining comprehensive insurance cover for
Low
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 To minimize risk associated
a) Data back-ups stored in off site locations.
systems risk
with data security, hardware
& communication and software. b) Maintaining of spare servers.
Low

c) Vendor agreements for support service and

regular maintenance.
Low
Statutory and Regulatory Risk
63

Risk Minimization Strategies applied
to the new business line of PVC
d)
debtors have to be collected by the previous owner.

The previous owner has to collect all dues from
In order to and to minimize the current business risk and also

to move forward in the direction of our Vision, we invested in a
PVC factory recently. Prior to taking over this factory, Samson
debtors and it is part of his purchase consideration.

e)
In the past we lost a significant market share for our

rubber hoses as there are PVC hoses with a better finish
owner as part of purchase consideration.

f)
no old EPF, ETF and gratuity issues and penalties will

be faced by our Company.
Further we use a lot of PVC- related items as raw

materials for our finished products, e.g., PVC stoppers for
hot water bottles. These are imported from China and
g)
3)
h)
products decrease. Therefore during such times, we can
i)
which can be competitive in the market. Therefore we
j)
into manufacturing PVC products and purchased assets of

Okta PVC Lanka (Private) Ltd., Baddegama,

A title deed search was done and a survey plan was

carried out.
could eliminate the Business Risk.

Therefore in order to eliminate above risks, we decided to step
A valuation report for Land & Buildings was

obtained.
make some of our products out of PVC, e.g., PVC hot

water bottles, PVC jar sealing rings, PVC bath mats, etc,
We did a diligence audit by giving it to a reputed

Audit Firm. This eliminated all financial risk.
We have experienced that every 3-4 years, rubber prices

sky rocket. During this time, sales of rubber-related
We decided to pay electricity, insurance and

telephone bills to minimize the operational risk.
there are frequent complaints about the quality of these

stoppers from our customers (Operational Risk).
We obtained the services of old employees by

giving them new letters of appointment. Therefore
and lower price. So we faced a Risk of Competition.

2)
We eliminated the risk of cheques in hand being

dishonoured. We gave these cheques to the previous
International Plc faced many risks, namely,

1)
We eliminated the risk of bad debts. Dues from
k)
Physical verification of assets was carried out.
l)
Required Board resolutions were passed after we

obtained the approval of the Audit Committee. We
When we negotiated the price for PVC business, we
checked whether it was under major transactions
eliminated the risk in the following manner:
under Section 185 of the Companies Act.

a)
We searched for a factory close to our current

factory. This eliminates some operational risks and
m)
legal risk.
we found a suitable factory.

b)
We eliminated the risk of transferring old tax
Informed the Colombo Stock Exchange. There is no
n)
Market research was carried out for PVC products
liabilities and penalties to us. We accepted their
before we invested in them. Therefore there is no
liabilities but excluded tax liabilities. Therefore, the
market risk.
finance and legal risks were eliminated.

o)
c)
We eliminated the risk of payments made to
in advance. Therefore there is no business and
unknown creditors and accrued expenses in the
finance risk.
future. This has to be settled by the current owner

as per our legal agreement. We eliminated finance
risk.
64
Negotiated banking facilities for the new business
repOrt
of the Board of Directors

The Directors of Samson International Plc have pleasure in
presenting their report together with the audited financial
Accounting Policies
statements of the Company for the year ended 31st March
A summary of the significant accounting policies adopted in the
2014, which was approved by the Directors at a meeting held
preparation of the Financial Statements is given on page 83 of
on 1st August 2014.
this Report as required by Section 168 (1) (d) of the Companies

Act No. 7 of 2007. The policies adopted are consistent with
General
those adopted in the previous financial year.
Samson International Plc is a public limited liability Company,

incorporated in Sri Lanka on 14th October 1988 and re-
Review of the year
registered under the Companies Act No. 7 of 2007 on 3rd
The Chairmans review and the Managing Directors operational
September 2008 under registration number PO 192. The
review together with the Financial Statements highlight the
ordinary shares of the Company were listed in the Colombo
Companys performance during the period under review and
Stock Exchange of Sri Lanka on 24th July 1992 and the
the state of affairs as at 31st March 2014.
Company was converted into a public quoted company.
Segment Reporting
This Report provides the information as required by the
Segment-wise products contribution to the Companys revenue,
Companies Act No. 07 of 2007, the Listing Rules of the
results, assets and liabilities is provided in Note 28 to the
Colombo Stock Exchange and recommended best practices on
Financial Statements on page 107.
Corporate Governance.
Turnover
The Principal Activities of the
Company
Turnover of the Company is Rs. 953 mn in 2013/14 as

compared to Rs. 974 mn in the last year.
The principal activity of the Company is the manufacture of

unhardened vulcanized rubber products for the international
and local market. There have been no significant changes in the
nature of the Companys principal activities during the year.
Turnover by segment:
Rs in 000
2013/2014
2012/2013
Medical items
209,496
213,671
Food grade items
286,664
291,250
Household items
108,275
138,555
Footwear components
348,126
330,381
Total turnover
952,561
973,857
65
repOrt OF tHe Board of Directors (contd...)

Profits:
2013/2014
2012/2013
64,841
51,077
Tax on profits
(8,491)
4,438
Profit after taxation
56,350
55,515
Retained profits brought forward
185,152
137,333
Profits available for appropriation / distributions
241,502
192,848
Proposed first & final dividends
(7,696)
(7,696)
Retained profits carried forward
233,806
185,152
Profit for the year

(after payment of all expenses, making provision for known liabilities and
depreciation on property, plant and equipment)
Taxation
Under Section 52 of the Inland Revenue Act No 10 of 2006, tax profit on export sales, tax profit on local sales, interest income and
agriculture income of the Company are taxed at the rate of 12%, 28%, 28% and 10 % respectively.
Investments in Property, Plant & Equipment

During the year 2013/2014, the Company invested Rs. 25.8 mn in property, plant & equipment. The total investments in property,
plant & equipment as at 31st March 2014 amounted Rs. 500 mn as opposed to Rs. 474 mn as at 31st March 2013. The information
relating to the movement in property, plant & equipment is given in Note 13 to the Financial Statement on page 97.
Stated Capital & Reserves

The movement of the Stated capital is as follows.
Stated capital- Rs
No. of Ordinary shares
2013/2014
2012/2013
105,752
105,752
3,847,974
3,847,974
Details of the Stated capital are given in Note 21 to the Financial Statements on page 102 of this Annual Report. The rights and
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.
Reserves
The Group reserves as at 31st March were as follows.
2013/2014
2012/2013
General reserves
110,000
110,000
Revenue reserves
233,806
185,152
Total reserves
343,806
295,152
66

Directorate
The 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)
DR D.S. Rajapaksa (Chairman)
2)
Mr D. K. Rajapaksa (Managing Director)
3)
Mr D. R. Rajapaksa (Non- Executive Director)
4)
Mr D. M. Rajapaksa (Non- Executive Director)
5)
Mr C. Cumaranatunge (Non- Executive Director)
6)
Mr G.H.A. Wimalasena (Independent, Non- Executive Director)
7)
Mr T. K. Bandaranayake (Independent, Non- Executive Director)
8)
Mr B. L.P. Jayawardena (Executive Director)
9)
Mr D. G. P. S. Abeygunawardana Director/ General Manager
(appointed on 8/8/2013 as Director)
10)
Mr R. H. Nandajeewa Director
(Resigned on 8/8/2013)
In terms of Article 88 (i) of the Articles of Association, Mr D. R. Rajapakse and under Section 210 of the Companies Act No. 7 of
2007, Mr T.K. Bandaranayake and Mr G.H.A. Wimalasena are available for re-election.
Directors interest in shares

Directors 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
Dr D.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
100
132
39,045
39,077
Mr. D. G. P.S. Abeygunawardana

(appointed on 8/8/2013)
Mr. R.H. Nandajeewa
(retired on 8/8/2013)
Total
67

The Directors of the Company who have relevant interests in
The Report of the Audit Committee is given on pages 72 and
the shares of the Company have disclosed their shareholdings
73, which forms part of the Annual Report.
in compliance with Section 200 of the Companies Act.
Directors Remuneration and Other

Benefits
The details of the Directors remuneration and other benefits,
in respect of the Company for the financial year ended 31
March 2014 is given in Note 8.1 to the Financial Statements
on page 94 of this Report, as required by Section 168 (1) (f) of
the Companies Act No. 07 of 2007. Directors remuneration
for the financial year 2013/14 is Rs. 8,376,395 (last year
Rs. 8,057,195).
Directors interest in transactions:

The Directors of the Company have made a disclosure as
required under Section 192(2) of the Companies Act No. 07 of
2007. Note 27 to the financial statements dealing with related
party disclosures include their interests in transactions under
Remuneration Committee:
Mr G. H. A. Wimalasena Chairman, Independent,

Non-Executive Director
Mr T.K. Bandaranayake
Independent,
Mr. D.M. Rajapaksa
The Report of the Remuneration Committee is given on page

74, which forms a part of the Annual Report.
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
note 27.3 on page 105.
the best people, providing them training to enhance their
Interest Register
skills, and recognition of the innate skills and competencies
The Interests Register is maintained by the Company, as per
of each individual while offering equal career opportunities
the Companies Act, No. 7 of 2007. All Directors have made
regardless of gender, race or religion and to retain them with
declarations as provided for in Section 192 (1) & (2) of the
the Company as long as possible. The number of persons
Companies Act aforesaid. The related entries were made in the
employed by the Company at year-end was 324 (last year 302).
Interests Register during the year under review. The Interests

Register is available for inspection as required by Section 119
System of internal controls
(1) (d) of the Companies Act No. 07 of 2007.
The Board of Directors has established an effective and

comprehensive system of internal controls to ensure that proper
Board committees
controls are in place to safeguard the assets of the Company,
The Board while assuming the overall responsibility and
to detect and prevent fraud and irregularities, to ensure that
accountability in the management of the company has also
proper records are maintained and Financial Statements
appointed Board Committees to ensure oversight and control
presented are reliable and accurate. Monthly Management
over certain affairs of the Company, conforming to the
Accounts are prepared, giving management relevant, reliable
corporate governance code and adopting the best practices.
and up -to-date Financial Statements and key performance
Accordingly, the following Committees have been constituted
indicators. The Statement on Directors responsibility for
by the Board:
financial reporting of the Company is set out on page 71 of this

Report.
Audit Committee:
Mr T. K. Bandaranayake Chairman,
Independent,
The Audit Committee reviews, on a regular basis, the reports,
policies and procedures to ensure that a comprehensive internal
Mr G.H. Wimalasena
Independent,
Mr D. M. Rajapaksa
68
control framework is in place.

Donations
The total amount of donations was Rs. 39,519 in the year
Social and Environmental

Responsibility
2013/14 (20012/13 Rs 44,500). This has not exceeded the
As a responsible corporate body, the Company has taken
amount approved by shareholders at the last Annual General
all necessary steps and precautions to minimize any adverse
Meeting. No donation was made for political purposes.
impact of the Companys activities on the environment. When
Major Transactions
introducing new business, products, methods and machines,

maximum care is taken to ensure that these conform to
There have been no transactions during the year under review
accepted environmental and safety regulations and standards.
which fall within the definition of Major Transactions in
The Directors, to the best of their knowledge and belief, are
terms of Section 185 of the Companies Act, No. 07 of 2007.
satisfied that the Company has not engaged in any activities
The total assets of the Company is Rs. 654 mn and 50% of
which have caused adverse effects on the environment and it
the total assets is Rs. 327 mn. The Company has not bought
has complied with the relevant environmental regulations.
any assets or undertaken any liabilities greater than Rs. 327 mn

during the year under review.
Sustainability Reporting
Sustainability practices have been built into every aspect of our
Share information
businesses and we consider sustainability goals along with our
The information pertaining to earnings per share, dividend
operational and financial goals. This Sustainability Report is on
per share, net assets per share and market value per share is
pages108 to 121 of this Annual Report.
given in the financial highlights on page 01 and in the Ten-year

summary on page 133 of this Annual Report.
Corporate Governance
The Company maintains and practices high principles of good
The twenty major shareholders and percentages held by each
corporate governance. The Directors are responsible for the
one of them as at 31st March 2014 are given on page 130 of
formulation and implementation of overall business strategies,
the Annual Report.
policies and setting standards in the short, medium and longterm adopting good governance in managing the affairs of the
Public holding of shares in the

Company
As at 31st March 2014, the public held 43.04% (in 2012/2013-
13.91%) of the shares of the Company. This significant
difference arose due to changes in the interpretation of
the definition of Public Holding by the Colombo Stock
Exchange.
Statutory Payments
The 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 regulations

To the best of the knowledge and belief of the Directors, the
Company. The practices adopted by the Company in relation

to corporate governance are set out on pages 53 to 58 of this
Report.
Auditors Report
The Companys external auditor, Messrs. HLB Edirisinghe &
Company, performed the audit on the Financial Statements
for the year ended 31 March 2014. The Auditors Report on
the Financial Statements is given on page 77 of this Report as
required by Section 168 (1) (c) of the Companies Act.
Appointment of Auditors
The retiring Auditors HLB Edirisinghe & Company, Chartered
Accountants, have expressed their willingness to continue
in office. A resolution to re-appoint them as auditors and
authorize the Directors to fix their remuneration will be
proposed at the Annual General Meeting in terms of the
Companies Act, No. 7 of 2007.
Company has not engaged in any activities contravening the

laws and regulations of the country.
69

Auditors Remuneration and
Independence
Financial Statements of the Company
The Company paid audit fees to the external auditors for the
Head of Finance and approved by two Directors in compliance
year 2013/14 amounting to Rs. 282,900 (2013 - Rs. 265,200).
with Sections 152, 153 and 168 of the Companies Act No. 7 of
Based on the declaration provided by Ms. HLB Edirisinghe &
2007, are given from pages 78 to 107 of the Annual Report.
The Financial Statements of the Company, duly certified by the
Company and as far as the Directors are aware, the Auditors do

not have any relationship with or interests in the Company that
Secretaries
may have a bearing on their independence, within the meaning
P W Corporate Secretarial (Pvt) Ltd. continues to work as
of the Code of Professional Conduct and Ethics issued by the
Secretaries to the Company.
Institute of Chartered Accountants of Sri Lanka.
Outstanding litigation
In the opinion of the Directors, in consultation with the
Dividends
The Directors recommend a dividend of 2.00 per share for the
year ended 31st March 2014 (2.00 per share in 2012/13).
Company lawyers, there is no litigation currently pending

against the Company which will have a material impact on the
Notice of Meeting
reported financial results or future operations of the Company.
Details of the Annual General Meeting are given in the Notice
Post Balance sheet events
of Meeting on page 136.
In the opinion of the Directors, no item, transaction or event of
22nd Annual General Meeting
an unusual nature has taken place between the financial year-
The 22nd Annual General Meeting of the Company will be held
end and the date of this report that would materially affect
on Monday the 19th day of September 2014 at the Sri Lanka
the results of the Company for the financial year in respect of
College of Obstetricians and Gynecologists Samson Rajapaksa
which this report is made.
Auditorium at No 112, Model Farm Road, Colombo 08, which

was the same venue for the previous year.
On 14th July 2014, the Company invested in a PVC factory,

Okta PVC Lanka (Pvt) Ltd., Baddegama, who were engaged in
On behalf of the Board
manufacturing PVC pipe & fittings under SLS. The total assets
value and Liabilities taken by us are Rs. 137,167,655 and
Rs. 113,339,588 respectively . The amount paid to the owner
was Rs. 23,828,067. The company informed the Colombo
D.K. Rajapaksa
D. G. P. S Abeygunawardana
Stock Exchange prior to investing in this business line.
Managing Director
Going Concern
The Board of Directors has reviewed the Companys business
and corporate plans and are satisfied that the Company has
P W Corporate Secretarial (Pvt) Ltd.
adequate resources to continue its operations in the
Secretaries
foreseeable future. After considering the financial position,
Colombo
operating conditions, regulatory and other factors and such
1st August 2014.
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.
70
stateMent
of Directors responsibility
T
he following statement, which should be read in
The Directors have general responsibility for taking such steps
conjunction with the Auditors responsibilities, as set out
as are reasonably open to them to safeguard the assets of
in their report, is made with a view to distinguish between the
the Company and to prevent and detect fraud and other
respective responsibilities of the Directors and the Auditors, in
irregularities.
relation to Financial Statements.

The Directors are of the opinion that the Financial Statements
The Directors are required by the Companies Act, No 07 of
of the Company set out on pages 78 to 107 have been
2007, to prepare Financial Statements for each financial year,
prepared in accordance with the above requirements and that
which give a true and fair view of the state of affairs of the
they have appropriately discharged their responsibilities as set
Company as at the end of the financial year and of the profit
out in this Statement.
and loss for the financial year. The Directors are required to
prepare these Financial Statements on the going concern basis,
The Directors confirm that to the best of their knowledge,
unless it is not appropriate.
all taxes, duties and levies payable by the Company and all
contributions, levies and taxes payable on behalf of and in
Since the Directors are satisfied that the Company has the
respect of the employees of the Company, and all other known
resources to continue its business for the foreseeable future,
statutory dues as were due and payable by the Company, as at
the Financial Statements continue to be prepared on the said
the Balance Sheet date have been paid, or where relevant are
basis.
being provided for.
The Directors consider that in preparing the Financial
On behalf of the Board
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
D. K. Rajapaksa
D. G. P.S. Abeygunawardana
followed.
Managing Director
The Directors are responsible for ensuring that the Company

keeps accounting records which disclose with reasonable
Colombo
accuracy the financial position of the Company, and which
1st August 2014.
enable them to ensure that the Financial Statements comply

with the Companies Act, No.07 of 2007.
71
auDit
committee report
T
he Audit Committee comprises three Non-Executive
2. Reviewing the integrity and adequacy of the disclosures
Directors the majority of whom are independent. The
in the financial statements of the company in accordance
Committee is chaired by Mr T.K. Bandaranayake, who is a
with the Companies Act, No.7 of 2007, the Sri Lanka
Fellow Member of the Institute of Chartered Accountants of Sri
Accounting Standards and Accounting Policies which are
Lanka and former Senior Partner of Messrs Ernst & Young.
consistently applied.
3. Reviewing the financial reporting system to ensure
Members of the Audit Committee

and Details of Meetings held
the accuracy and timelines of the financial statements

produced.
4. Reviewing and ensuring the adequacy and effectiveness
The attendance of the members of the Audit Committee was
of the Companys internal control systems and risk
as follows:
management.
Name of Director
Status
27th May
13thFebruary
26thMay
No of
2013
2013
2013
2014
2014
Attendance
(Chairman)
NE/I
5/5
Mr G H A Wimalasena
NE/I
3/5
Mr D M Rajapaksa
NE
5/5
Members attendance at the Audit Committee meetings of Samson International Plc

Note: Mr G H A Wimalasena was unable to attend two meetings as he was away on overseas tours.
The Audit Committee held five meetings during the year under
5. Oversight on the compliance by the company with the
review. The proceedings of the Audit Committee are regularly
requirements of the statutory and regulatory framework.
reported to the Board of Directors.
Compliance is monitored quarterly through the Company

Reports.
Role of the Audit Committee
6. Making recommendations to the Board of Directors on the
The functions of the Audit committee are in line with the
appointment/ re-appointment and the remuneration of the
requirement of the Securities & Exchange Commission of Sri
external auditors based on their performance.
Lanka and the best practices of Corporate Governance. These

included, inter alia, ensuring the effectiveness of internal
7. Examining any non-audit work performed by the auditors

to ensure that their independence is not impaired.
controls and procedures for financial reporting purposes

and the integrity of financial statements as well as the
Internal Audit Function
independence of the external auditors.
The Audit Committee reviews the Quarterly Internal Audit
The Audit Committee was responsible for the following:
Reports. The internal audit function is carried out by M/s Ernst
1. Meetings with the auditors to discuss any problems and
& Young. The internal audit reports are reviewed thoroughly
reservations arising from the audit and any other matters

that the auditor may wish to discuss independent of the
management.
72
and recommendations are made for rectification.
auDit committee report (contd...)

Conclusion
The 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 Committee has recommended to the Board of Directors

that Messrs HLB Edirisinghe & Co., Chartered Accountants, be
re-appointed as the Auditors for the financial year ending 31st
March 2015, subject to the approval of the shareholders at
the Annual General Meeting at a fee to be determined by the
management.
The Audit Committee is satisfied that the companys 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
T. K. Bandaranayake
Chairman
Audit Committee
adequately safeguarded.
Colombo
1st August 2014
Audit Committee
73
repOrt OF
the remuneration committee

T
he Remuneration Committee, appointed by and

responsible to the Board of Directors, consists of two
independent, Non- Executive Directors, Mr G.H.A. Wimalasena

and Mr T.K. Bandaranayake and another Non- Executive
Director Mr D.M. Rajapaksa. The committee is chaired by Mr
G.H.A. Wimalasena.
Role of the Committee:

The Remuneration Committee reviews and recommends to the
Remuneration Policy:
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.
The Remuneration Committee held two meetings during the
year under review.
Board of Directors the policy on remuneration for the executive

staff, specific remuneration packages for the Executive Directors
and revision of fees for the Non- Executive Directors. Directors
remuneration for the financial year 2013/14 is Rs. 8,376,395
(last year Rs. 8,057,195).
G.H.A. Wimalasena
Chairman
Colombo
1st August 2014.
74
Financial
review
During the year, the Company reduced the

finance cost by 62%, reduced gearing to 6.8%
and took many investments decisions
Gross Profit Margin

The Company has recorded a gross profit of Rs 145 mn as
against Rs150 mn in the previous year. The main reason for the
drop in gross profits was a decrease in export sales, increase in
Revenue
uring the year ended 31st March 2014, the Company

recorded a turnover of Rs. 953 mn as against Rs 974 mn
in the previous year. It is noted that there was a growth of 7%

in local sales in the year. Local sales went up by Rs 21 mn from
Rs. 318 mn in the previous year to Rs. 339 mn in the current
year. However, export sales have come down by 6.5% or by Rs
43 mn from Rs. 656 mn in the previous year to Rs. 613 mn in
the current financial year.
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. The Gross Profit Ratio in the current year as well
as in the previous year is 15%. The reduction of production
overheads and wastage levels were achieved effectively.
Waste levels in jar sealing rings came down this year to an
unprecedented level.
In local sales, it is noted that sales of V strap and shoe soles
Operational Profit Margin (Profit

before Finance cost)
have gone up significantly in the current financial year.
The Operational Profit in the current financial year is Rs
Rubber mats, road humps and rubber hose sales have been
47.7 mn and last year it was Rs. 54.0 mn. The selling and
growing gradually. We have still not seen a significant sales
distribution cost was Rs. 24 mn in the current year as against
improvement in floorings. We have tapped almost every
Rs 24.8 mn in the previous year while Administrative Overheads
customer in the pipe joints market and had a significant sales
was Rs. 75 mn during the year under review as against Rs 72.7
growth in the year. We will develop our local sales further
mn. This years Administrative Overhead cost includes the
through aggressive sales promotions and by strengthening and
amount written off of intangible assets. The exchange gain
restructuring the Marketing Department.
earned due to the depreciation of the local currency against

foreign currencies was Rs.17.7 mn in the current year as
In exports sales, we noted a marginal drop in sales in jar sealing
against Rs 6.2 mn in the previous year. However, we lost some
rings, hot water bottles and rubber mats. During the year, we
revenue due to the adverse impact from the exchange rates of
had experienced a favourable gain from Euro exchange rates.
India, South Africa and Japan. The operational profit to sales
However, we encountered an adverse impact on our sales
ratio was 5.0% (previous year 5.6%).
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.
Out of the total revenue of Rs 953 mn for the year ended 31st
March 2014, 64% was earned from exports sales and the
balance 36% from local sales.
Profit / (Loss) before Taxation

The profit before taxation in the current year is Rs. 64.8 mn
as compared to the profit of Rs 51.0 mn in the previous
year. The current years profit of Rs. 64.8 mn was recorded
after amortization of Rs. 6.3 mn intangible assets, Rs. 13.2
mn of non- moving finished goods stocks and raw materials.
The finance cost decreased by 62 % from Rs. 9.9 mn in the
previous year to Rs. 3.7 mn in the current financial year. The
75
Financial review (contd...)

Investments
Company was able to earn a gain of Rs 0.5 mn from the

forward exchange contracts which commenced in the last
During the year, the Company invested Rs 15 mn in a flash
quarter. We hope to earn more gains from foreign exchange

contracts in the coming years.
less automated V strap press, Rs 3 mn in a mill and another

Rs. 2mn in a press line. Another Rs. 1.5 mn was invested in
a water treatment plant. The company was able to invest in
Taxation
Debentures, Treasury Bills and Fixed deposits amounting to Rs.
During the year, tax provision increased due to the deferred tax
adjustment.
50.3 mn in the financial year under review. We have planned

to invest another Rs 6 mn in new software in the IFS system in
2013/14
2012/2013
Rs.
Rs.
Tax on profits of the year
4,535,269
3,042,594
Deferred tax expense/(Income)
3,955,316
(7,481,140)
The market capitalization of the Company was Rs. 339.4 mn at
Total
8,490,585
(4,438,546)
the closing price of the share, up from Rs. 316.3 mn recorded
2014/15.
Market Capitalization
in the previous year. During the year under review, the highest
After the tax provision, the Company recorded a profit of
traded price of the Companys share was Rs. 105.00, while the
Rs 56.3 mn in the current year as against Rs.55.5 mn in the
lowest price was Rs. 74.00. 49,773 shares were traded during
previous year.
the year and the share price closed for the year at Rs. 88.20.
Ratios
The gearing ratio in the current year is 6.8% as against 13.2%
in the previous year. Earnings per share are Rs. 14.64 in the
current year as against Rs. 14.43 in the previous year. The
market price as at 31st March 2014 was Rs. 88.20 (last year Rs
82.20).
76
auDitOrs
report
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
TO THE SHAREHOLDERS OF SAMSON INTERNATIONAL PLC
Report on the Financial Statements

We have audited the accompanying financial statements of
Samson International PLC., which comprise the statement of
financial position as at 31st March 2014, and the statements
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
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.
We have obtained all the information and explanations which
to the best of our knowledge and belief were necessary for
the purposes of our audit. We therefore believe that our audit
provides a reasonable basis for our opinion.
explanatory notes.
Opinion
Managements Responsibility for the

Financial Statements
In our opinion, so far as appears from our examination, the
Management is responsible for the preparation and fair

presentation of these financial statements in accordance with
Sri Lanka Accounting Standards. This responsibility includes;
designing, implementing and maintaining internal 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
statements based on our audit. We conducted our audit
in accordance with Sri Lanka Auditing Standards. Those
standards require that we plan and perform the audit to obtain
company maintained proper accounting records for the year

ended March 31, 2014 and the financial statements give a true
and fair view of the companys State of Affairs as at March
31, 2014 and its financial performance and cash flows for
the year then ended in accordance with Sri Lanka Accounting
Standards.
Report on Other Legal and Regulatory

Requirements
These financial statements also comply with the requirements
of Section 151(2) of the Companies Act No 07 of
2007.
HLB Edirisinghe & Co.

Chartered Accountants
Colombo
1st August 2014
77
stateMent
of comprehensive income
FOR THE YEAR ENDED 31ST MARCH
NOTES
Revenue
Cost of sales
2014
2013
Rs.
Rs.
952,561,234
973,858,289
(807,751,637)
(824,008,726)
Gross Profit
144,809,597
149,849,563
Other income
2,282,319
1,749,323
Distribution cost
(24,019,314)
(24,801,170)
Administrative expenses
(75,308,710)
(72,737,442)
Operating Profit
47,763,892
54,060,274
Finance income
9.1
20,856,704
6,916,633
Finance cost
9.2
(3,780,035)
(9,900,028)
Net Finance Income
17,076,669
(2,983,395)
Profit before income taxation
64,840,561
51,076,879
10
(8,490,585)
4,438,546
56,349,976
55,515,425
Income tax expense

Profit for the year
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 : All values are in Rupees, unless otherwise stated.

Figures in brackets indicate deductions.
The Significant Accounting Policies and Notes on pages 82 to 107 are an integral part of these financial statements.
78
stateMent
of Financial position
AS AT
ASSETS
Non Current Assets
Property, plant and equipment
Intangible assets
Available for sale financial assets
Other financial assets
Deferred tax assets
Current Assets
Inventories
Trade and other receivables
Tax recoverable
Cash and cash equivalents

Total Assets
EQUITY AND LIABILITIES
Stated capital
General reserve
Retained earnings
Total Equity
Non- Current Liabilities
Deferred tax liability
Retirement benefit obligation
Current Liabilities
Trade and other payables
Short term borrowings

Total Liabilities
Total Equity And Liabilities
31.03.2014
31.03.2013
Rs.
Rs.
NOTES
13
14
15
16
17
172,218,635
2,557,332
21,354,300
29,000,000
4,975,187
230,105,453
174,449,120
8,950,642
6,855,791
190,255,553
18
19

20

125,296,412
229,125,850
8,716,706
60,880,788
424,019,756
654,125,209
143,785,662
226,059,880
13,251,975
19,755,466
402,852,983
593,108,536
21
105,752,241
110,000,000
233,806,250
449,558,491
105,752,241
110,000,000
185,152,222
400,904,463
17
22
10,905,774
15,129,866
26,035,640
8,831,062
14,528,107
23,359,169
23
24

145,688,020
32,843,058
178,531,078
204,566,718
654,125,209
108,040,574
60,804,330
168,844,904
192,204,073
593,108,536
I certify that above Financial Statements comply with the requirements of Companies Act No.07 of 2007.
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
Managing Director
D. G. P. S. Abeygunawardana
Colombo
1st August 2014
79
stateMent
of changes in equity
FOR THE YEAR ENDED 31ST MARCH 2014
Restated Balance as at 1st April 2012
Stated
General
Retained
Capital
Reserve
Earnings
Total
Rs.
Rs.
Rs.
Rs.
105,752,241
110,000,000
137,332,745
353,084,986
55,515,425
Profit for the year
55,515,425
Other Comprehensive Income
Total Comprehensive Income for the year
55,515,425
55,515,425
(7,695,948)
(7,695,948)
185,152,222
400,904,463
56,349,976
56,349,976
Transactions with equity holders

Dividends Paid
Balance as at 31st March 2013
105,752,241
110,000,000
Profit for the year
Other Comprehensive Income
Total Comprehensive Income for the year
56,349,976
56,349,976
(7,695,948)
(7,695,948)
110,000,000
233,806,250
449,558,491
Note : The purpose of the General reserve is to utilize in future investments and expansions.
Note :
Transactions with equity holders

Dividends Paid
Balance as at 31st March 2014
All values are in Rupees, unless otherwise stated.
105,752,241

80
stateMent
of cash Flows
NOTES
CASH FLOW FROM OPERATING ACTIVITIES
Profit /(Loss) before taxation
Adjustment for :

Depreciation

Amortization of intangible assets

(Profit)/Loss on disposal of property, plant & equipment

(Profit)/Loss on scrapping plant & equipment

Increase in retirement benefit obligation

Finance income

Finance cost
Profit Before Working Capital Changes

(Increase)/ decrease in inventories

(Increase)/ decrease in trade & other receivable

Increase/ (decrease) in trade & other payable
Cash generated from operations

Interest paid

Income tax paid

Retiring gratuity paid
Net cash generated from operating activities
CASH FLOW FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment
Investment in debentures
Investment in treasury bills
Investment in fixed deposits

Interest income

Proceeds from sale of property, plant & equipment
Net cash used in investing activities
CASH FLOW FROM FINANCING ACTIVITIES

Dividend paid

Proceeds from short term borrowings

Repayment of short term borrowings
Net cash used in financing activities
Net (decrease) / increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and Cash equivalents at the end of the year
Note : All values are in Rupees, unless otherwise stated.
2014
2013
Rs.
Rs.
64,840,561
51,076,879
13

22
9.1
9.2
27,768,868
6,393,310
(331,681)
-
1,539,613
(20,856,704)
3,780,035
26,526,938
1,278,660
(1,166,071)
109,382
7,673,597
(6,916,633)
9,900,028
83,134,002
18,489,250
(3,065,970)
37,647,447
88,482,780
(18,645,717)
(16,127,420)
(35,925,069)

9.2

22
136,204,729
(3,780,035)
-
(937,855)
131,486,839
17,784,574
(9,900,028)
(1,594,745)
(3,051,511)
3,238,291
13
(20,118,377)
-
9.1

(25,856,701)
(21,354,300)
(10,000,000)
(19,000,000)
20,856,704
650,000
(54,704,297)
6,916,633
2,366,071
(10,835,673)

24
24
(7,695,948)
161,650,914
(177,273,998)
(7,695,948)
160,977,140
(128,304,333)
(23,319,032)
53,463,510
4,236,943
57,700,453
24,976,859
17,379,477
(13,142,534)
4,236,943
20

1st August 2014
81
nOtes
to the Financial statements

1.
General Information
Accounting and Auditing Standards Act No. 15 of

1995.
1.1
General
The Company is a public limited liability company
1.2
2.2.
Basis of Measurement
incorporated and domiciled in Sri Lanka. The address of
The financial statements have been prepared on the
its registered office is No. 110, Kumaran Ratnam Road,
historical cost basis, except that the retirement benefit
Colombo 02 and the principle place of business is
obligations are measured at the present value of the
situated at Akuressa Road, Bogahagoda, Angulugaha,
defined benefit plans as explained in the respective
Galle.
notes to the financial statements.
Principal Activities and Nature of Operations
2.2.1
Going concern
During the year, the principal activities of the Company
The Directors have made an assessment of the
were manufacture and export of unhardened
Companys ability to continue as a going concern in
rubber
the foreseeable future and they do not foresee a need
products to the international and local markets.
for liquidation or cessation of trading. Therefore, the

financial statements continued to be prepared on the
1.3
going concern basis
Parent Enterprise & Ultimate Parent Enterprise

The Companys parent undertaking is DSI Samson
Group (Pvt) Ltd which holds effectively 55.79% of
1.4
2.3.
Functional and Presentation Currency
shares of Samson International PLC collectively inclusive
The Financial Statements are presented in Sri Lankan
of Company holding.
Rupees which is the Companys functional currency.

2.4.
Approval of Financial Statements
Use of Estimates and Judgments
These financial statements have been approved for
The preparation of financial statements in conformity
issue by the Board of Directors on 1st August 2014
with SLFRS requires management to make judgments,

estimates and assumptions that affect the application
1.5
Number of Employees
of accounting policies and the reported amounts of
The total number of employees stod at 324 as at 31st
assets and liabilities and disclosure of contingent assets
March 2014. (302 as at 31st March 2013)
and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses
2.
Basis of Preparation
during the reporting period. Although the judgments

and estimates are based on managements best
2.1.
Statement of Compliance
knowledge of the current events and actions, actual
The Company prepares the financial statements in
results may ultimately differ from those estimates. It
accordance with the Sri Lanka Accounting Standards
also requires management to exercise its judgment
(LKAS & SLFRS) issued by the Institute of Chartered
in the process of applying the companys accounting
Accountants of Sri Lanka and the requirements of
policies.
the Companies Act No. 07 of 2007 and Sri Lanka

82
nOtes to the Financial statements (contd...)
3.
Information about critical estimates and judgments
All property, plant and equipment are stated at
in applying accounting policies that have the most
historical cost less depreciation. Historical cost
significant effect on the amounts recognized in the
includes expenditure that is directly attributable to the
financial statements is provided in Note 04.
acquisition of the items.
Significant Accounting Policies
Where the carrying amount of an asset is greater than
The accounting policies set out below have been
its estimated recoverable amount, it is written down
applied consistently to all periods presented in these
immediately to its recoverable amount.
financial statements of the company

3.2.1.2. Subsequent Costs
3.1.
The cost of replacing part of an item of property, plant
Foreign Currency
and equipment is recognized in the carrying amount

of the item if it is probable that the future economic
3.1.1. Foreign Currency Transactions

In preparing the Financial Statements of the individual
benefits embodied within the part will flow to the
entities, transactions in currencies other than the
company and its cost can be measured reliably. The
entitys functional currency (foreign currencies)
carrying amount of the replaced part is derecognized.
are recorded in the functional currencies using

the exchange rates prevailing at the dates of the
3.2.1.3. Derecognition
The carrying amount of an item of property, plant and
transactions.
equipment is derecognized on disposal or when no

At each reporting date, monetary items denominated
future economic benefits are expected from its use
in foreign currencies are translated at the closing rate.
or disposal. Gains or losses on derecognition of the

asset are determined by comparing the proceeds from
3.2.
Exchange differences arising on the settlement of
disposal with the carrying amount of property, plant &
monetary items, and on the translation of monetary
equipment and are recognized within other income in
items, are included in profit or loss for the period.
the statement of comprehensive income.
Assets and the Bases of their Valuation
3.2.1.4. Depreciation
Assets classified as current assets in the Statement of

Financial Position are cash, bank balances and those
Depreciation is calculated over the depreciable
which are expected to be realized in cash, during the
amount, which is the cost of an asset, or other amount
normal operating cycle of the Companys business, or
substituted for cost, less its residual value.
within one year from the reporting date, whichever

is shorter. Assets other than current assets are those
Depreciation is recognized in profit or loss on a straight
which the Company intends to hold beyond a period
line basis over the estimated useful lives of each
of one year from the reporting date.
part of an item of property, plant and equipment,

since this most closely reflects the expected pattern
3.2.1. Property, Plant and Equipment
of consumption of the future economic benefits

embodied in the asset. Leased assets are depreciated
3.2.1.1. Recognition and Measurement
over the shorter of the lease term and their useful lives
Property, Plant and Equipment are stated at cost less
unless it is reasonably certain that the company will
accumulated depreciation and accumulated impairment
obtain ownership by the end of the lease term. Land is
losses.
not depreciated.
83

The estimated useful lives are as follows:
3.2.2.3. Amortisation
Amortization is calculated over the cost of the asset,
Asset Category
Useful Life
Depreciation
(Years)
Rate (%)
Buildings
20
5%
Storage Tank
10
10%
Plant & Machinery
10
10%
Machine Accessories
10
10%
Furniture and Fittings
10
10%
Office Equipment
10
10%
estimated useful life has been re-estimated to 5 years
Motor Vehicles
20%
instead of the previous estimate of 10 years which is
or other amount substituted for cost, less its residual

value.

Amortization is recognized in the profit or loss on a

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
shown below:
Depreciation of an asset begins when it is available for

use where as depreciation of an asset ceases at the
Category
earlier of the date that the asset is classified as held for
of Asset
sale and the date that the asset is derecognized.
Useful Depreciation
Life (Years)
Useful
Rate (%)
Re-estimated
Life (Years)
up to 2012/13
ERP Computer
Depreciation method, useful lives and residual values
Software
are reviewed at each financial year end and adjusted if
20%
10
Amortisation methods, useful lives and residual values
appropriate.
are reviewed at each financial year end and adjusted if

appropriate.
3.2.2. Intangible Assets

Changes in the expected useful life or the expected
3.2.2.1. Software
pattern of consumption of future economic benefits
All computer software cost incurred, which are not
embodied in the asset is accounted for by changing the
internally related to associate hardware, which can be
amortisation period or method, as appropriate, and are
clearly identified, reliably measured and it is probable
treated as changes in accounting estimates.
that they will lead to future economic benefits, are

included in the Statement of Financial Position under
3.2.2.4 Derecognising
the category of intangible assets.
Gains or losses arising from derecognising of an

intangible assest are measured as the difference
Intangible assets acquired separately are measured on
between the net disposal proceeds and the carrying
initial recognition at cost.
amount of the asset and are recognised in the income

statement when the asset is derecognised.
Following initial recognition, intangible assets are

carried at cost less accumulated amortisation and
accumulated impairment losses, if any.
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
3.2.2.2 Subsequent Expenditure
impairment. Assets that are subject to amortisation are
Subsequent expenditure is capitalised only when it

increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure
is recognized in profit or loss as incurred.
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 assets carrying amount
exceeds its recoverable amount. The recoverable
84

amount is the higher of an assets fair value less costs
effective interest method, less provision for impairment.
to sell and value in use. For the purposes of assessing
A provision for impairment of trade receivables is
impairment, assets are grouped at the lowest levels
established when there is objective evidence that
for which there are separately identifiable cash flows
the Company will not be able to collect all amounts
(cash-generating units). Non-financial assets other than
due according to the original terms of receivables.
goodwill that suffered impairment are reviewed for
Significant financial difficulties of the debtor, probability
possible reversal of the impairment at each reporting
that the debtor will enter bankruptcy or financial
date.
reorganisation, and default or delinquency in payments

are considered indicators that the trade receivable is
impaired. The amount of the provision is the difference
3.2.4. Inventories
Inventories are measured at the lower of cost and net
between the assets carrying amount and the present
realizable value.
value of estimated future cash flows, discounted at the
Costs incurred in bringing each product to its present
original effective interest rate.
location and condition are accounted for as follows:

The carrying amount of the asset is reduced
a)
All inventory items except manufactured

inventories and work-in-progress are measured
using first in, first out basis.
b) Manufactured inventories and work-in-progress are

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.
Net realisable value is the estimated selling price in
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.
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
When a trade receivable is uncollectible, it is written
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.
3.2.5. Trade Receivables

3.3. Financial Instruments
3.2.5.1. Recognition and Measurement
Trade receivables are amounts due from customers for
3.3.1. Financial Assets
goods sold or services performed in the ordinary course

of business. If collection is expected in one year or less
3.3.1.1. Initial Recognition and Measurement
(or in the normal operating cycle of the business if
Financial assets within the scope of LKAS 39 are
longer), they are classified as current assets. If not, they
classified as financial assets at fair value through
are presented as non-current assets.
profit or loss, loans and receivables, held-to-maturity

investments or available-for-sale financial assets, as
3.2.5.2. Provision for Impairment
appropriate. The Company determines the classification
Trade receivables are recognised initially at fair value
of its financial assets at initial recognition. All financial
and subsequently measured at amortised cost using the
assets are recognised initially at fair value plus, in the

85

case of assets not at fair value through profit or loss,
comprehensive income in the available-for-sale reserve
directly attributable transaction costs. Purchases or sales
until the investment is derecognised, at which time the
of financial assets that require delivery of assets within
cumulative gain or loss is recognised in other operating
a time frame established by regulation or convention in
income, or determined to be impaired, at which time
the market place (regular way trades) are recognised on
the cumulative loss is reclassified to the statement of
the trade date, i.e., the date that the company commits
comprehensive income in finance costs and removed
to purchase or sell the asset.
from the available-for-sale reserve. Interest income on

available-for-sale debt securities is calculated using the
The companys financial assets include cash and short
effective interest method and is recognised in profit or
term deposits, trade and other receivables, loans and
loss.
other receivables and other financial assets.

The Company evaluates its available-for-sale financial
3.3.1.2. Subsequent Measurement
assets to determine whether the ability and intention
The subsequent measurement of financial assets
to sell them in the near term is still appropriate. When
depends on their classification as follows:
the Company is unable to trade these financial assets

due to inactive markets and managements intention
Financial assets at fair value through profit and
to do so significantly changes in the foreseeable future,
loss
the Company may elect to reclassify these financial
Financial assets at fair value through profit and loss
assets in rare circumstances. Reclassification to loans
include financial assets designated as such at fair value
and receivables is permitted when the financial assets
through profit or loss at initial recognition. Financial
meet the definition of loans and receivables and the
assets are classified as held for trading if they are
Company has the intent and ability to hold these
acquired for the purpose of selling in the near term.
assets for the foreseeable future or until maturity.
Subsequent to initial recognition, financial assets at
Reclassification to the held-to-maturity category is
fair value through profit loss are carried at fair value
permitted only when the entity has the ability and
in the statement of financial position with fair value
intention to hold the financial asset accordingly.
gains or losses recognized through the Statement of
For a financial asset reclassified out of the available-for
Comprehensive Income.
sale category, any previous gain or loss on that asset

that has been recognised in equity is amortised to profit
The company did not have any financial assets classified
or loss over the remaining life of the investment using
as fair value through profit or loss as at 31st March
the EIR. Any difference between the new amortised
2014.
cost and the expected cash flows is also amortised over

the remaining life of the asset using the EIR (Efective
Available-for-Sale Financial Investments
Interest Rate). If the asset is subsequently determined
Available-for-sale financial investments include equity
to be impaired, then the amount recorded in equity is
and debt securities. Equity investments classified as
reclassified to the statement of comprehensive income.
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
86
Held-to-maturity Investments

Non-derivative financial assets with fixed or

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

interest method, less impairment. Amortised cost is
of the asset, but has transferred control of the
calculated by taking into account any discount or
asset.
premium on acquisition and fees or costs that are an

integral part of the EIR. The EIR amortisation is included
On derecognition of a financial asset, the difference
in finance income in the statement of comprehensive
between the carrying amount of the asset (or the
income. The losses arising from impairment are
carrying amount allocated to the portion of the asset
recognised in the statement of comprehensive income
transferred), and the sum of (i) the consideration
in finance costs.
received (including any new asset obtained less any

new liability assumed) and (ii) cumulative gain or loss
The company did not have any financial assets classified
that had been recognized in other comprehensive
as held to maturity investments as at 31st March
income is recognized in profit or loss.
2014.
3.3.2. Impairment of Financial Assets
Loans and Receivables
The Company assesses at each reporting date whether
Loans and receivables are non-derivative financial assets
there is any objective evidence that a financial asset or
with fixed or determinable payments that are not
a group of financial assets is impaired. A financial asset
quoted in an active market. After initial measurement,
or a group of financial assets is deemed to be impaired
such financial assets are subsequently measured at
if, and only if, there is objective evidence of impairment
amortised cost using the effective interest rate method
as a result of one or more events that has occurred
(EIR), less impairment. Amortised cost is calculated
after the initial recognition of the asset (an incurred
by taking into account any discount or premium on
loss event) and that loss event has an impact on the
acquisition and fees or costs that are an integral part of
estimated future cash flows of the financial asset or the
the EIR. The EIR amortisation is included under finance
group of financial assets that can be reliably estimated.
income in the statement of comprehensive income.

The losses arising from impairment are recognised in
the statement of comprehensive income under finance
costs.
3.3.3. Financial Liabilities

3.3.3.1. Initial Recognition and Measurement
Financial liabilities within the scope of LKAS 39 are
classified as financial liabilities at fair value through
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) is derecognised when:
The rights to receive cash flows from the asset have

expired
The Company has transferred its rights to receive
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
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 companys 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
87

liabilities designated upon initial recognition at fair
3.4.2. Defined Contribution Plans Employees
value through profit or loss.

Provident Fund and Employee Trust Fund
Financial liabilities are classified as held for trading
All employees who are eligible for Employees Provident
if they are acquired for the purpose of selling in the
Fund Contributions and Employees Trust Fund
near term. This category includes derivative financial
Contributions are covered by relevant contributions
instruments entered into by the Company that are
funds in line with the relevant statutes. Employers
not designated as hedging instruments in hedge
contributions to the defined contribution plans are
relationships as defined by LKAS 39.
recognized as an expense in profit or loss when
Gains or losses on liabilities held for trading are
incurred.
recognised in the statement of comprehensive income.

3.5
Stated Capital
The Company has not designated any financial
Stated capital consists solely of ordinary share capital.
liabilities upon initial recognition as fair value through
Ordinary shares are classified as equity.
profit or loss.
Incremental costs directly attributable to the issue of
Loans and Borrowings
new shares are shown as a deduction, net of tax, in
After initial recognition, interest bearing loans and
equity from the proceeds.
borrowings are subsequently measured at amortised

cost using the effective interest rate method unless the
3.6
Provisions
effect of discounting would be insignificant in which
A provision is recognized if, as a result of a past event
case they are stated at cost.
the Company has a present legal or constructive

obligation that can be estimated reliably, and it is
Amortised cost is calculated by taking into account
probable that an outflow of economic benefit will be
any discount or premium on acquisition and fees
required to settle the obligation.
or costs that are an integral part of the EIR. The

EIR amortisation is included in finance costs in the
3.7. Statement of Comprehensive Income
statement of comprehensive income.

3.7.1. Revenue
3.3.3.3 Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
3.7.1.1. Revenue Recognition

Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company
3.4. Post Employment Benefits
and the revenue and the associated costs incurred or

to be incurred can be reliably measured. Revenue is
3.4.1. Defined Benefit Plan
measured at the fair value of the consideration received
Defined benefit plans are post-employment benefit
or receivable, net of trade discounts and sales taxes,
plans other than defined contribution plans. The
and after eliminating sales within the Company. The
liability recognized in the statement of financial
following specific criteria are used for the purpose of
position in respect of defined benefit plan is the present
recognition of revenue.
value of the defined benefit obligation at he reporting

date. The defined benefit obligation is calculated using
the Projected Unit Credit Method.
3.7.1.1.1 Sale of Goods

Revenue from the sale of goods is recognized when the
significant risks and rewards of ownership of the goods
Past service costs are recognized immediately in the

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.
88
have passed to the buyer, usually on delivery of the

goods.

3.7.1.1.2. Other Income
Interest Income
3.7.4. Taxation
3.7.4.1. Current Taxes
For all financial instruments measured at amortised
Current Income tax liabilities for the current and prior
cost and interest bearing financial assets classified
periods are measured at the amount expected to be
as available-for-sale, interest income or expense is
recovered from or paid to the Commissioner General
recorded using the effective interest rate (EIR), which
of Inland Revenue. The tax rates and tax laws used to
is the rate that exactly discounts the estimated future
compute the amount are those that are enacted or
cash payments or receipts through the expected life
substantively enacted by the reporting date.
of the financial instrument or a shorter period, where
The provision for income tax on Sri Lankan operation
appropriate, to the net carrying amount of the financial
is based on the elements of income and expenditures
asset or liability. Interest income is included in finance
reported in the Financial Statements and computed
income in the statement of comprehensive income.
with in accordance with the provisions of the Inland

Revenue Act.
3.7.2. Expenditure Recognition

The relevant details are disclosed in the respective notes
3.7.2.1. Operating Expenses
to the Financial Statements.
All expenses incurred in day to day operations of the

business and in maintaining the property, plant and
3.7.4.2. Deferred Taxation
equipment in a state of efficiency has been charged to
Deferred taxation is provided, using the liability
the statement of comprehensive income in arriving at
method, on all temporary differences at the reporting
the profit for the year. Provision has also been made
date between the tax bases of assets and liabilities and
for impairment of financial assets, slow moving stocks,
their carrying amounts for financial reporting purposes.
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
profit or loss, impairment losses recognized on financial
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.
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
and carry forward of unused tax losses / credits can be
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
the asset is realized or the liability is settled, 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.
89

3.8.
Related Party Transactions
Sri Lanka Accounting Standard- SLFRS 9 Financial
Disclosure has been made in respect of the transactions
Instruments
in which one party has the ability to control or exercise
The objective of this Accounting Standard is to
significant influence over the financial and operating
establish principles for the financial reporting of
policies/decisions of the other, irrespective of whether a
financial assets and financial liabilities that will present
price is being charged or not.
relevant and useful information to users of financial
The relevant details are disclosed in the respective notes
statements for their assessment of the amounts, timing
to the Financial Statements.
and uncertainty of an entitys future cash flows.

An entity shall apply this SLFRS to all items within the
3.9.
Cash Flow
scope of LKAS 39 Financial Instruments: Recognition
Interest received and dividends received are classified as
and Measurement.
investing cash flows, while dividend paid and interest
3.10.
paid, is classified as financing cash flows for the
The effective date of this Accounting Standard
purpose of presentation of Statement of Cash Flows
has been deferred as at the date of these financial
which has been prepared using the Indirect Method.
statements.
Earnings Per Share
Sri Lanka Accounting Standard- SLFRS 13 Fair
Basic EPS is calculated by dividing the profit or loss
Value measurement
attributable to ordinary shareholders of the Company

by the weighted average number of shares outstanding
This Accounting Standard defines fair value, sets out in
during the period.
a single SLFRS a framework for measuring fair value;

and requires disclosures abut fair value measurements.
3.11.
Events Occurring after the Reporting Period

Events after the reporting period are those events
This SLFRS will become effective from 01st January
favourable and unfavourable, that occur between
2014 and shall be applied prospectively as of the
the end of the reporting period and the date when
beginning of the annual period in which it is initially
the financial statements are authorized for issue. The
applied. The Disclosure requirements of this SLFRS need
materiality of the events occurring after the reporting
not to be applied comparative information provided for
period is considered and appropriate adjustments to or
periods before initial application of this SLFRS.
disclosures are made in the Financial Statements, where

necessary.
In addition to the above, following standards will also

be effective for annual periods commencing on or after
3.12.
New Accounting Standards issued but not yet
01st January 2014.
effective
There are a number of new Accounting Standards,
SLFRS 10 - Consolidated Financial Statements
amendments to standards, which have been issued

but not yet effective as at the Reporting date have not
SLFRS 11 - Joint Arrangements

SLFRS 12 - Disclosure of Interests in Other Entities
been applied in preparing these Financial Statements.

The company will adopt the following new/revised
The above three standards will impact the recognition,
Accounting Standards which will be effective from 01st
measurement and disclosures aspects currently
April 2015. Accordingly these Accounting Standards
contained in LKAS 27-Consolidated and separate
have not been applied in preparing these Financial
financial statements, LKAS 28- Investments in
Statements.
associates ,LKAS 31-Interest in joint ventures and SIC12 and SIC 13 which are on consolidation of special
SLFRS 9 - Financial Instruments
purpose entities(SPEs) and jointly controlled entities
SLFRS 13 - Fair Value Measurement
respectively.
90

Establishing a single control model that applies to
brought about by changes in the factors mentioned.
all entities including Special Purpose Entities and
A reduction in the estimated useful lives of PPE would
removal of the option to proportionate consolidation
increase the recorded depreciation charge and decrease
jointly controlled entities are the significant changes

introduced under SLFRS 10 and SLFRS 11 respectively.
the PPE balance.

4.2
Estimated Useful lives of Intangible Assets
SLFRS 12 , establishes a single standard on disclosures
The Company reviews annually the estimated useful
related to interests in other entities. This incorporates
lives of intangible assets based on factors such as
new disclosures as well as disclosures currently required
business plan and strategies, expected level of usage
under LKAS 27, LKAS 28 and LKAS 31.
and future developments. Future results of operations

could be materially affected by changes in these
Based on the preliminary analysis performed, the above
estimates brought about by changes in the factors
Standards on adoption are not expected to have any
mentioned. A reduction in the estimated useful lives
material impact on the financial statements.
of intangible assets would increase the recorded

amortization charge and decrease the intable assets
3.13. Segment Reporting
balance.
Segment information is provided for for the different

business segments of the company. Business
4.3
Defined Benefit Obligations
segmentation has been determined based on the
The present value of the gratuity obligations depends
nature of goods provided by the company after
on a number of factors that are determined on an
considering the risks and rewards of each type of
actuarial basis using a number of assumptions. The
product.
assumptions used in determining the net cost for

gratuity include the discount rate. Any changes in
4.
The activities of the segments are described in note 28
these assumptions will impact the carrying amount of
to the financial statements.
gratuity obligations.
Critical Accounting Estimates,

Assumptions and Judgments
The Company determines the appropriate discount

rate at the end of each year. This is the interest rate
Estimates, assumptions and judgments are continually
that should be used to determine the present value of
evaluated and are based on historical experience
estimated future cash outflows expected to be required
and other factors, including expectations of future
to settle the pension obligations. In determining the
events that are believed to be reasonable under the
appropriate discount rate, the Company considers
circumstances. The Company makes estimates and
the interest rates of government bonds that are
assumptions concerning the future. The resulting
denominated in the currency in which the benefits will
accounting estimates will, by definition, seldom
be paid and that have terms to maturity approximating
equal the related actual results. The estimates and
the terms of the related pension obligation.
assumptions that have a significant risk of causing

a material adjustment to the carrying amount of
4.4
Allowance for Doubtful Debts
assets and liabilities within the next financial year are
The Company assesses at the reporting date whether
discussed below.
there is objective evidence that trade receivables have

been impaired. Impairment loss is calculated based on
4.1
Estimated Useful lives of Property, Plant and
a review of the current status of existing receivables
Equipment (PPE)
and historical collections experience. Such provisions
The Company reviews annually the estimated useful
are adjusted periodically to reflect the actual and
lives of PPE based on factors such as business plan
anticipated impairment.
and strategies, expected level of usage and future

developments. Future results of operations could be
materially affected by changes in these estimates
91

5. Financial Risk Management
Risk Exposure
5.1 Credit Risk
Risk exposure
Mitigating actions
Risk arising from default of payment. Higher
a) Following stringent assessment
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.
5.2 Operational process Risk
Internal process failures, frauds,

pilferages and breakdowns of internal controls
a) Outsource internal audit to a reputed

audit firm to review and report on
the adequacy of the financial and
operational controls to Audit
Committee and Managing Director.

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
familiarize them with processes and

procedures.
d) Carrying out mandatory preventive
maintenance programmes.
e) The Company sources its products
and services from approved suppliers.
92

Risk Exposure
5.3 Financing and Interest
rate risk
Risk exposure
Mitigating actions
Inability to satisfy debt repayments and obtain the
a) To have adequate facilities in
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
rate Risk
exchange in conversion in relation to export
into consideration before
proceeds, import payments and foreign currency
conversion & pricing.
debt transactions.
b) Practising effective hedging
techniques.
c) Continuous evaluation of the impact
of Central Bank regulations.
5.5 Project Management

Risks
New projects / Capital expenditures involve high
a) Conduct a PESTEL analysis
risks and uncertainties in terms of delay and
and feasibility study before
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.
93

NOTES
2014
2013
Rs.
Rs.
06. Revenue

Sale of goods
6.1
952,561,234
973,858,289
952,561,234
973,858,289
6.1 Sale of Goods

Export Turnover
613,250,076
656,041,490
Local Turnover
339,311,158
317,816,799
952,561,234
973,858,289
331,681
1,166,071
07. Other Income

Profit on disposal of property, plant & equipment

Income from cultivation
Reversal of over provided expenses
11,290
Creditors dues written back
1,877,601
Reversal of inventory impairement provision
61,747
5,259
-
577,993
2,282,319
1,749,323
514,837,534
569,154,015
8.1
131,108,188
112,128,990
08. Expenses by Nature

Cost of purchase
Employee benefit expenses
Other overheads
74,508,706
66,488,300
Depreciation
27,768,868
26,526,938
13,068,204
14,132,366
Export expenses

Machinery maintenance
14,514,517
8,495,804
Sub contract wages
11,552,748
7,829,757
Auditors remuneration - Assurance services
242,300
230,000
Auditors remuneration - Non -Assurance services
40,600
35,200
Others
119,437,996
116,525,968
907,079,661
921,547,338
Total Cost of Purchase, Distribution and Administrative Expenses
8.1 Employee Benefit Expenses

Directors emoluments
8,376,395
8,057,196
Bonus & other allowances
1,437,254
1,252,102
Salaries, wages & overtime
111,288,432
92,508,653
Post employment benefit - gratuity

EPF & ETF
692,826
1,918,399
9,313,281
8,392,640
131,108,188
94
112,128,990

NOTES
2014
2013
Rs.
Rs.
9. Net Finance Income

9.1 Finance Income

Interest Income
3,086,413
726,762
Foreign Exchange Gain
17,770,291
6,189,871
20,856,704
6,916,633
9.2 Finance Cost

Interest Expenses On Bank Borrowing
2,342,302
4,765,096
Overdraft Interest
1,437,733
5,134,932
3,780,035
9,900,028
Net Finance Income
17,076,669
(2,983,395)
10.1
4,353,651
3,034,498
10 Income Tax Expenses

Current Tax Expenses:
Current tax on profit for the year

(Over) / Under provision in previous years
181,618
8,096
3,955,316
(7,481,140)
8,490,585
(4,438,546)
64,840,561
51,076,879
Deferred Tax Expenses:

Origination and reversal of temporary differences
17
Income Tax Expenses in Statement of Comprehensive Income
10.1 Reconciliation between Current Tax Expenses and the Accounting Profits
Profit before tax
Tax effects of:
Total disallowable expenses
36,796,434
38,189,332
Total allowable expenses
(49,550,123)
(50,361,037)
Taxable income from ordinary activities
52,086,872
38,905,174
(18,230,405)
(13,616,811)
33,856,467
25,288,363
Tax loss claimed

Taxable income
Agricultural Income
10%
Tax profit on export sales
12%
Interest income
28%
Tax on profit for the year
3,844,619
526
3,033,972
509,032
4,353,651
3,034,498
95

NOTES
2014
2013
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

Profit for the year
56,349,976
55,515,425
Profit attributable to equity holders of the company
56,349,976
55,515,425
3,847,974
3,847,974
3,847,974
3,847,974
Number of Ordinary Shares Used as the Denominator

Weighted average number of ordinary shares in issue
Weighted average number of ordinary shares for earnings per share

Basic Earnings per Share (Rs.Cts)
14.64
14.43
12. Dividend paid during the year

Amounts Used as Numerator

Dividend paid
7,695,948
7,695,948
3,847,974
3,847,974
Number of Ordinary Shares Used as the Denominator

Weighted Average Number of Ordinary Shares in Issue

Dividend per Share (Rs. Cts.)
96
2.00
2.00

13. Property, Plant and Equipment
COST/VALUATION
As At
01.04.2013
Additions
Disposals
As At
31.03.2014
Rs.
Rs.
Rs.
Rs.
3,190,105
3,190,105
90,594,322
90,594,322
125,031
125,031
Freehold assets
Freehold land
Buildings
Storage tank

Plant and machinery
233,231,837
20,320,526
(228,000)
253,324,363
Machine accessories
117,145,471
3,270,733
(300,000)
120,116,204
Furniture and fittings
1,471,790
Office equipment
13,952,118
Motor vehicles
3,282,668
Sundry assets
11,535,367
Waste water treatment plant - WIP

Total
-
474,528,708
1,471,790
14,290,601
3,282,668
396,959
11,932,326
1,530,000
1,530,000
338,483
-
25,856,701
(528,000)
499,857,410
DEPRECIATION
Freehold assets
Freehold land

Buildings
Storage tank
39,159,991
125,031
4,726,349
-
43,886,340
125,031
Plant and machinery
161,726,941
13,804,163
(201,401)
175,329,703
Machine accessories
77,412,056
7,151,674
(8,280)
84,555,450
599,285
Office equipment
9,431,185
Motor vehicles
2,857,669
Sundry assets
8,767,430

Total
-
300,079,588
111,550
1,038,460
710,835
10,469,645
199,558
3,057,227
737,114
9,504,544
-
27,768,868
(209,681)
327,638,775
WRITTEN DOWN VALUE

Freehold assets
Freehold land

Buildings
Storage tank
3,190,105
3,190,105
51,434,331
46,707,982
Plant and machinery
71,504,896
77,994,660
Machine accessories
39,733,415
35,560,754
872,505
760,955
3,820,956
424,999
225,441
2,767,937
2,427,782
1,530,000
172,218,635
Office equipment

Motor vehicles
Sundry assets

Total
4,520,933
-
174,449,120
97

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
Motor Vehicle
2,432,668
Office Equipment
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

The value of office and factory situated at Akuressa Road, Bogahagoda, Angulugaha, Galle was valued by independent
incorporated valuer at a value of Rs. 132 mn as at 29th August 2009 and the factory at No: 57B, Industrial Processing Zone,
Nagoda, Kaluthara was purchased in 2009/2010 at the market value of Rs. 18,000,000/.
Location
Address
No. of Buildings
Extent of land
Extent of Building
Galle Factory
Akuressa Road,
10 Buildings
7 Acres 2 Roods &
94,900 Sq ft
Bogahagoda, Galle.
17 Perches
Kalutara Factory
No. 57/B, Fullerton
03 Buildings
120 Perches
5,990 Sq ft
Industrial Zone,
Nagoda, Kalutara.
98

31.03.2014
31.03.2013
Rs.
Rs.
14. Intangible Assets

Cost

As at 1 April
12,786,626
Additions
As at 31 March
12,786,626
-
12,786,626
12,786,626
Amortisation

As at 1 April
3,835,984
2,557,322
Charge for the year
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
The company has changed its estimate regarding the amortization period of intangible asset as 5 years instead of previous estimate
of 10 years during the year 2013/14.
15. Available for Sale Financial Assets

Quoted Debentures
No of
Debentures
Market
Price
Market Value
As at 31.03.2014
Market Value
As at 31.03.2013
Rs.
Rs.
Rs.
1,000
10,000,000
Hayleys Plc
10,000
National Development Bank Plc
50,200
100
5,020,000
Hatton National Bank Plc
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. Deferred Income Tax Assets and Liabilities

17.1 - Deferred tax assets

Balance at the beginning of the year
6,855,791
1,952,274
Recognised in profit & 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

8,831,062
11,408,687
Recognised in profit & loss
2,074,712
(2,577,625)
10,905,774
8,831,062
Net Deferred tax liabilities
5,930,587
1,975,271
99

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
Defined benefit obligation
1,945,571
1,743,313
Tax loss
3,029,616
5,112,478
Total
4,975,187
10,905,774
As at
NOTES
6,855,791
8,831,062
8,831,062
31.03.2014
31.03.2013
Rs.
Rs.
18. Inventories
Raw materials
31,561,702
34,115,020
Work-in-progress
33,428,845
24,350,790
Finished goods
52,028,190
79,070,920
Packing materials
9,539,574
7,510,831
(1,261,899)
(1,261,899)
Provision for inventory

125,296,412
143,785,662
18,913,852
24,379,603
19 Trade and Other Receivables

Current
Trade receivables - Local

Trade receivables - Foreign
Trade receivables - Related parties
Less: Provision for impairment of trade receivables
146,678,834
158,609,434
19.1
41,509,219
24,100,175
(2,075,014)
(2,136,761)
205,026,891
204,952,451
Trade receivables - net

Other receivables
2,129,055
797,567
Deposits and prepayments
4,694,006
4,197,185
Advances
5,167,139
3,967,544
VAT Receivable
12,108,759
12,145,133
Other receivables
24,098,959
21,107,430
Total
229,125,850
226,059,880
40,066,078
21,067,803
19.1 - Trade Receivables - Related parties

D. Samson Industries (Pvt) Ltd.
Samson Rubber Industries (Pvt) Ltd.
Samson Engineers (Pvt) Ltd.
18,565
99,491
38,621
Samson Trading (Pvt) Ltd.
705,152
341,655
Samson Reclaim Rubbers Ltd.
152,957
178,694
Samson Rubber Products (Pvt) Ltd.
34,212
2,195,971
Samson Rajarata Tiles (Pvt) Ltd
107,935
DSI Welfare shop
Samson Compounds (Pvt) Ltd.

D Samson & Sons (Pvt) Ltd.
Samson Group Corporate Services (Pvt) Ltd.

100
-
206,468
238,241
44,057
12,000
92,869

8,625
41,509,219
24,100,175

Movements on the company provision for impairment of trade receivables is as follows:

31.03.2014
Rs.
As at 1 April
2,136,761
Provision / (Reversal) for receivables impairment
(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
in the statement of comprehensive income (Note 08 and 07 respectively). Amounts charged to the allowance account are
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.
As at
31.03.2014
31.03.2013
Rs.
Rs.
Trade and other receivables excluding prepayments, statutory payments and advances
205,026,891
204,952,451
20
60,880,788
19,755,466
265,907,679
224,707,917
NOTES
19.2 Analysis of Financial Instruments
Financial instruments by category
Loans and receivables
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
end of the reporting period was as follows:
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

period by type of counterparty is as follows:
Trade receivables from related parties
41,509,219
24,100,175
Trade receivables - others
163,517,672
180,852,275
205,026,891
204,952,450
Amounts due from related companies were given on normal credit terms.
101

As at
31.03.2014
31.03.2013
Rs.
Rs.
NOTES
20. Cash and Cash Equivalents

Favourable Cash and Cash Equivalent Balances
Bank balances
60,457,996
19,346,511
Cash on hand
422,792
408,955
60,880,788
19,755,466
3,180,335
15,518,523
3,180,335
15,518,523
57,700,453
4,236,943
3,847,974 Number of Ordinary Shares in Issue with no par value
105,752,241
105,752,241
105,752,241
105,752,241
14,528,107
9,906,020
1,598,092
1,544,630
Unfavourable Cash and Cash Equivalent Balances

Bank Overdrafts
Cash and cash equivalents for the purpose of cash flow statement
The company held cash and cash equivalents with reputed commercial banks.
21. Stated Capital

Issued and fully paid

22. Retirement Benefit Obligation

Movement in the Present Value of Defined Benefit Obligation
Balance as at the beginning of the year
Current Service Cost

Interest Cost
1,813,027
990,602
Actuarial (gain) / loss on obligation
(1,871,505)
5,138,366
Benefit Paid
(937,855)
(3,051,511)
Balance as at the end of the year
15,129,866
14,528,107
31.03.2014
31.03.2013
10%
10%
11%
11%
4% to 42%
5%
Actuarial assumptions:
Salary Incremental rate

Rate of Discount
Staff turnover rate
Provision has been made for retirement gratuities in conformity with LKAS 19 - Employee Benefits.
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
23. Trade and Other Payables

Trade Creditors - Related Companies
23.1
VAT Payable
186,886
1,363,366
NBT Payable
90,142
1,036,657
Advances Received
986,622
6,804,352
145,688,020
108,040,574
102

As at
31.03.2014
31.03.2013
NOTES
Rs.
Rs.
1,362,735
142,661
25,093
207,473
385,450
243,246
3,201,908
3,729,279
23.1 Trade Creditors - Related Companies

-
40,000
505,669
106,088,889
66,774,430
D S I Welfare Shop
23,150
39,880
Mount Spring Water (Pvt) Ltd.
4,608
1,382
Samson Information Technologies (Pvt) Ltd.
68,512
32,307
D Samson & Sons (Pvt) Ltd
170,635
40,888
Samson Bikes (Pvt) Ltd

111,330,980
314,650
72,071,865
24. Borrowings
Current
Bank borrowings - Overdrafts

- Short Term Borrowings
3,180,335
15,518,523
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
Hatton National Bank PLC Finished Good Stocks & Debtors
Confirmed Order Confirmation
Term Loan
Hatton National Bank PLC Confirmed Order Confirmation
Inventory
Overdraft
Seylan Bank PLC
Finished Good Stocks & Debtors
Inventory
Overdraft
Bank Of Ceylon- Galle
Raw Material Stocks
Inventory
Overdraft
Bank Of Ceylon- Cop.
Raw Material Stocks
Financial assets
Overdraft
DFCC Vardhana Bank PLC
Treasury bills
As at
NOTES
31.03.2014
31.03.2013
Rs.
Rs.
24.2 - Short Term Borrowings

45,285,807
12,613,000
Obtained during the year
161,650,914
160,977,140
Repayments during the year
(177,273,998)
(128,304,333)
29,662,723
45,285,807
103

25. Commitments and Contingencies
There were no commitments and contingencies existing as at the reporting date.
26. Events Occurring after the Reporting Date

No circumstances have arisen, since reporting date, which would require adjustments to, or disclosure, in the financial
statements.
27. Related Party Disclosures

Details of significant related party disclosures are as follows:
27.1 Key Management Personnel of the Company

The Key Management personnel (KMP) comprise the members of its Board of Directors. Directorss remuneration for the
financial year ended March 31, 2014 is given in Note 8.1 to the Financial Staements.
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

Key Management Personnel Compensation
2014
2013
Rs.
Rs.
Short-term employee benefits
8,376,395
8,057,196
8,376,395
8,057,196
27.2.2 Other Transaction with Key Management Personnel

Mr. C Cumaranatunge a director of the company is also Chairman / Managing Director of M/s Sanger GMBH and Gumitex
Productions - UND to which companys sales amounting to Rs. 470,229,315/- has been made during the year as specified
below.
Other Transaction with Key Management Personnel - For the year ended
31.03.2014
Rs.
To SANGER GMBH
140,809,810
To GUMMITEX GMBH
329,419,505
470,229,315
104

27.3 Directors Interest In Contracts with the Company
None of the Directors of the Company had any direct or indirect interests in any existing or proposed contracts with the
Company other than those stated below:
The directors of the company are also the directors of following companies.
27.3.1 Mr. D.S. RAJAPAKSA who is a Director of the company is also holding directorships in the following companies
within the Group.
Name of Company
Relationship
Director
Director
Director
Samson Trading Company (Pvt) Ltd.
Director
27.3.2 Mr. D.K RAJAPAKSA who is a Director of the companys is also holding directorships in the following companies
within the Group.
Name of Company
Relationship
Director
Director
Director
Director
Director
Director
Director
Director
Director
Samson Manufacturers (Pvt) ltd.
Director
27.3.3 Mr. D.R. RAJAPAKSA who is a Director of the company is also holding directorships in the following companies
within the Group.
Name of Company
Relationship
Director
Director
Director
Director
Director
Director
Samson Group Corporate Services (Pvt) Ltd
Director
Director
105

27.3.4 Mr. D.M. RAJAPAKSA who is a Director of the company is also holding directorships in the following companies
within the Group.
Name of Company
Relationship
Director
Director
Director
Director
Director
Samson Manufacturers (Pvt) ltd.
Director
27.3.5 Mr. B.L.P. JAYAWARDANA who is a Director of the company is also holding directorships in the following companies
within the Group.
Name of Company
Relationship
Director
Samtessi Brush Manufacturers (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
Sales
Purchases
Sales
Purchases
Rs.
Rs.
Rs.
Rs.
D Samson & Sons (Pvt) Ltd
Samson Rubber Industries (Pvt) Ltd
Samson Trading Company (Pvt) Ltd.
Samtessi Brush Manufacturers (Pvt) Ltd
Samson Engineers (Pvt) Ltd
Samson Sportswear (Pvt) Ltd
Samson Manufactures (Pvt) Ltd
Samson Rubber Products (Pvt) Ltd
Mount Spring Water (Pvt) Ltd
2013
198,616,507
827,792
186,391,439
627,679
418,905
2,166,466
27,917
1,838,602
47,812
40,000
45,624
242,171
3,555,015
97,150
5,221,160
2,495
8,338,388
478,774,619
2,974,762
555,733,842
610,090
1,036,385
391,992
3,765,537
1,190,620
4,515,049
1,795,564
4,401,200
10,626,375
9,600.00
102,528
-
3,451,836
3,384,551
13,741.00
15,284,699
12,270,369
14,812,531
14,613
27,157
10,053
501,990
11,020,492
27.5 Outstanding amounts due from related parties and due to related parties are disclosed in Note 19.1 & 23.1
respectively.
106
571,308
Segmental Expense
Operating Profit/(Loss)
Africa
Asia
Total
Australia & New Zealand
America
Europe
28.2 Geographical Segment
Other Income
Profit/(Loss) on Fixed Asset Disposal
Local Sales
Export Sales
28.1Business Segment
208,861
11,178
35,645
162,038
9,492
(200,558)
210,050
472
82
209,496
635
208,861
212,328
19,004
193,324
12,469
(201,821)
214,290
328
291
213,671
1,343
212,328
Rs.000
Rs.000
284,583
284,583
30,348
(256,869)
287,217
472
81
286,664
2,081
284,583
Rs.000
2014
2013
285,912
285,912
30,530
(261,225)
291,755
214
291
291,250
5,338
285,912
Rs.000
2013
Food Grade Items
Medical Items
2014
28. Segment Operating Results
67,714
14,495
2,817
1,380
49,022
3,771
(105,064)
108,835
472
88
108,275
40,561
67,714
Rs.000
2014
99,166
47,795
413
5,085
45,873
2,580
(136,291)
138,871
24
292
138,555
39,389
99,166
Rs.000
2013
Household Items
52,092
5,247
2,659
44,186
4,153
(344,589)
348,742
535
81
348,126
296,034
52,092
Rs.000
58,635
Rs.000
2013
58,635
75
10,321
1,161
885
46,193
8,481
(322,209)
330,690
16
292
330,382
271,747
Others
2014
613,250
25,673
5,247
2,817
39,684
539,829
47,764
(907,080)
954,844
1,951
332
952,561
339,311
613,250
Rs.000
2013
656,041
91,419
10,321
1,574
5,970
546,757
54,060
(921,546)
975,606
582
1,166
973,858
317,817
656,041
Rs.000
Company
2014
107
GlOBal
reporting initiative (Gri)

Samson international Plc voluntarily adopted Global Reporting Initiative (GRI) G4 In accordance core Guidelines during the
financial year 2013/14 as a measure of improving the standard of accountability and reporting on accountability, These details are
given below.
Strategy and Analysis

G4-1
Statement from the Chairman
Page
Chairmans Review
3 - 6
Organization profile
G4-3
Name of the organization.
Samson International Plc
G4-4
Primary brands, products, and/or services.
Management Discussion and Analysis- our products
25 - 36
G4-5
Location of organizations headquarters.
Corporate Information
14 - 15
G4-6
Number of countries where the organization
Management Discussion and Analysis -
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
Nature of ownership and legal form.
Corporate Information and Investor Information
15, 130
G4-8
Markets served (including geographic
42, 107
breakdown, sectors served, and types of
Our Global Presence and Note 28 of the
customers/beneficiaries).
G4-9
Scale of the reporting organization.
Corporate Information and Investor Information
15, 127
G4-10
Total work force by employment type,
Management Discussion and Analysis - Our People
36
employment contract, and region, broken

down by gender.
G4-11
Percentage of employees covered by collective
None
bargaining
G4-12
Organizations supply chain
Sustainability-Environment
G4-13
Significant changes during the reporting period Investor Information
regarding size structure and ownership
121
127
Commitment to External Initiatives

G4-14
Precautionary principles
Risk Management
59 - 64
G4-15
Charters, principles or other initiatives
Corporate Governance and Sustainability
53, 108
G4-16
Memberships of association
Management Discussion and Analysis-
50
Membership and Associations
122
GlOBal
(contd...)
Identified Material Aspects and Boundaries
Page
G4-17
Operational structure of the organization.
Executive Management
23
G4-18
Process for defining report content.
Management Discussion and Analysis,
24, 83,
Accounting Policies, Glossary of Financial Terms.
135
24, 83
G4-19
Material aspect identified for report content.
Accounting Policies.
G4-20
Aspect boundary for identified material
24, 83
aspects within the organization.
Accounting Policies.
G4-21
Aspect boundary for identified material
Chairmans Review, Management Discussion and
3, 24,
aspects outside the organization.
Analysis, Accounting Policies.
83
G4-22
Restatements of information provided in the
None
previous reports.
G4-23
Significant changes from previous reporting
Accounting Policies, Chairmans Review
83, 3
periods in the scope and aspect boundaries.
Stakeholder engagement
G4-24
List of stakeholder groups engaged by the
109 - 119
organization.
G4-25
Basis for identification and selection of
109 - 119
109 - 119
109 - 119
stakeholders with whom to engage.

G4-26
Approaches to stakeholder engagement,

including frequency of engagement by type
and by stakeholder group.
G4-27
Key topics and concerns that have been

raised through stakeholder engagement.
Report Profile
G4-28
Reporting period
Year ended 31 March 2014.
G4-29
Date of most recent previous report
Quarterly Financials
G4-30
Reporting cycle
Annually
G4-31
Contact point for questions regarding the
report or its contents.
Samson International Plc,
Akuressa Road,
131
Bogahagoda,
Galle.
G4-32
Compliance with GRI G4 Guidelines, GRI
Sustainability report
108, 24
Content Index and External Assurance Report.
and Management Discussion and Analysis.
G4-33
Policy and current practice with regard to
Audit Report and Audit Committee Report
77, 72
seeking external assurance for the report.
123
GlOBal
(contd...)
Governance
G4-34
Page
Governance structure of the organization,
Report of the Board of Directors
65 - 70
Our corporate vision ,mission, values and our aim.
50
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

of behavior
Specific Standard Disclosures

Category: Economic
Aspect
Economic Performance
G4-EC1
Direct economic value generated, distributed
and retained.
Statement of Value Added
G4-EC2
Financial implications and other risks and
Management Discussion and Analysis
opportunities for the organizations activities
and Risk Management
24, 59
due to climate change.

G4-EC3
Coverage of the organizations defined
Accounting Policies and Notes to
benefit plan obligations.
Aspect
Indirect Economic Impacts
G4-EC8
Significant indirect economic impacts,
Chairmans Review ,
including the extent of impacts.
Ten year Economic Summary
91
3, 132
Category: Environment
Aspect
Emissions
G4-EN15
Direct greenhouse gas(GHG) emissions(Scope1)
Management Discussion and Analysis-Energy
47
G4-EN16
Energy indirect greenhouse gas(GHG)
47
47
47
47
emissions(Scope 2)
G4-EN17
Other indirect greenhouse gas(GHG)

emissions (Scope 3)
G4-EN18
Greenhouse gas(GHG) emissions intensity
Aspect
Effluents and Waste
G4-EN23
Total weight of waste by type and
disposal method
Production efficiencies and energy
G4-EN29
Compliance
None
Monetary value of significant fines and total

number of non-monetary sanctions for
non-compliance with environmental
laws and regulations.
124
108
GlOBal
(contd...)
Category: Social
Page
Labor Practices and Decent Work

Aspect
Employment
G4-LA1
Total number and rate of new employee hires
Management Discussion and Analysis-Our People
36 - 40
Management Discussion and Analysis- Our People
41
Management Discussion and Analysis-Legal
49
36
36
and employee turnover by age group gender

and region.
G4-LA2
Benefits provided to full-time employees that

are not provided to temporary or part-time
employees, by significant location of operation.
Aspect
Labour/Management Relations
G4-LA4
Minimum notice periods regarding operational

changes, including whether these are specified
in collective agreements.
Aspect
Occupational Health and Safety
G4-LA5
Percentage of total workforce represented in

formal joint management-worker health and
safety committees that help monitor and
advice on occupational health and safety
programmes.
G4-LA6
Type of injury and rates of injury, occupational

disease, lost days and absenteeism, and total
number of work-related fatalities, by region
and by gender.
Aspect
Training and Education
G4-LA9
Average hours of training per year per employee Management Discussion and Analysis- Our People
36 - 40
by gender, and by employee category.
Human Rights
Aspect
Investment
G4-HR1
Total number and percentage of significant
None
investment agreements and contracts that

include human rights clauses or that
underwent human rights screening.
Aspect
Child Labour
G4-HR5
Operations and suppliers identified as having
Management Discussion and Analysis-Legal
49
significant risk for incidents of child labour and

measures taken to contribute to the effective
abolition of child labour.
125
GlOBal
(contd...)
Society
Page
Aspect
Anti-Corruption
Risk Management
G4-SO3
Total number and percentage of operations
None
assessed for risks related to corruption and

the significant risks identified.
Aspect
Compliance
G4-SO8
Monetary value of significant fines and total
None
number of non-monetary sanctions for

non-compliance with laws and regulations.
Product Responsibility
Aspect
Product and Service Labelling
G4-PR3
Type of product and service information
required by the organizations procedures
Management Discussion and Analysis-Our Products
for product and service information and

labeling, and percentage of significant product
and service categories subject to such
information requirements.
Aspect
Marketing Communications
G4-PR7
Total number of incidents of non-compliance
None
with regulations and voluntary codes

concerning marketing communications,
including advertising, promotion, and
sponsorship by type of outcomes.
Aspect
Compliance
G4-PR9
Monetary value of significant fines for

non-compliance with laws and regulations
concerning the provision and use of
products and services.
126
None
25 - 36
inVestOr
information
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.
Board of Directors at the last AGM
1)

General
a)
Stated capital
Rs. 105,752,241
b)
No. of Shares
3,847,974
c)
Class of Shares
Ordinary Shares
127
inVestOr information (contd...)

2)
Stock Exchange Listing
The issued ordinary shares of Samson International Plc are listed on the Colombo Stock Exchange. The audited income statement
for the year ended 31st March 2014 and the audited balance sheet of the Company as at that date have been submitted to the
Colombo Stock Exchange within the stipulated date.
3)
Date of Listing
The Company was listed on 24th July 1992.
4) Market Capitalization
The market capitalization of the Company which is the number of ordinary shares issued multiplied by the market value of a share
(at the yearend), was Rs.339.3mn at 31st March 2014 (Rs.316.3 mn as at 31st March 2013).
5) Market Value of the Companys Ordinary Shares

Market Value per
2014
share
Date
2013
Rs
Date
Change
Rs
Highest Price
105.00
16.01.2014
120.00
28.8.2012
(12.5%)
Lowest Price
74.00
5.04.2013
62.00
13.6.2012
19%
Closing
88.20
31.3.2014
82.20
31.3.2013
7.2%
Share Price Rs.
Rs.
160
140
120
100
80
60
40
20
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
The share price of the company has increased

five-fold during last ten years
128

6)
Analysis of Shareholders based on number of shares as at 31st March 2014

No of Shares held
No of
% of
Total
% of total
Shareholders
Shareholders
holding
holding
1,023
90.9
121,652
3.2
1,001 10,000
88
7.8
244,041
6.4
10,001-100,000
0.8
304,427
7.9
100,001 1,000,000
0.3
932,106
24.2
1,000.000 & Over
0.2
2,245,748
58.3
1,125
100
3,847,974
100.0
1-1,000
Total
Analysis of Shareholders based on number of shares as at 31st March 2013

No of Shares held
No of
% of
Total
% of total
Shareholders
Shareholders
holding
holding
1,021
90.0
130,334
3.4
1,001 10,000
94
8.3
258,915
6.7
10,001-100,000
1.0
281,195
7.3
100,001 1,000,000
0.4
932,106
24.2
1,000.000 & Over
0.3
2,245,424
58.3
1,127
100
3,847,974
100.0
1-1,000
Total
7) Analysis of Shareholders category-wise as at 31st March 2014

Category
No of
% of
Total
% of
Shareholders
Shareholders
holding
total holding
1,081
96.4
621,922
16.2
Institutional-local
42
3.6
3,225,742
83.8
Individual - foreign
0.0
310
Institutional- foreign
0.0
1,125
100
3,847,974
100
Individual- Local
Total
Analysis of Shareholders category-wise as at 31st March 2013

Category
No of
% of
Total
% of
Shareholders
Shareholders
holding
total holding
1,086
96.4
621,869
16.2
40
3.5
3,225,805
83.8
Individual - foreign
0.1
300
Institutional- foreign
1,127
100
3,847,974
100
Individual- Local
Institutional-local
Total
129

8) No of Share Transctions
The No of Share transactions for the year ended 31st March 2014 and 2013 are 49,773 and 54,183 respectively.
9)
Public Holdings
As at 31st March 2014, the public held 43.04% (in 2012/2013- 13.91%) of the shares of the Company. This significant difference
arose due to change in the interpretation of the definition of public holding by the Stock Exchange.
10) Twenty Major Shareholders as at 31st March 2014

Shareholder
No of Shares
No of Shares
as at 31/3/2014
as at 31/3/2013
DSI Samson Group ( Pvt) Ltd.
1,204,824
31.3
1,204,824
31.3
Seylan Bank PLC/ Thirugnanasambander Senthilvel
1,040,924
27.0
1,040,600
27.0
D. Samson Industries ( Pvt) Ltd.
548,758
14.2
548,758
14.2
D. Samson & Sons ( Pvt) Ltd.
274,348
7.1
274,348
7.1
Dr.Thiruganansabander Senthilvel
109,000
2.8
109,000
2.8
96,553
2.5
96,553
2.5
Sanger GMBH
78,622
2.0
78,622
2.0
Abeysiri Hemapala Munasinghe
30,107
0.8
30,107
0.8
Mr. G. K. Piyasena
22,980
0.6
22,980
0.6
10
Samson Manufacturers ( 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
Waldock M ackenzie Ltd./ Hi-Line Trading ( 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
Waldock Mackenzie Ltd./ Hi- Line Towers ( Pvt) Ltd.
7,100
0.2
7,100
0.2
3,535,163
91.8
3,532,207
91.8
312,811
8.2
315,767
8.2
3,847,974
100.0
3,847,974
100.0
Total
Others
Total Shareholdings of the Company
130
FOur-Quarter
Financial summary
INCOME STATEMENT
For the 03 Months ended 30th June
2013
Rs.
Un audited
Continuing operations
Revenue
Export
Local
Total Revenue
Cost of sales
Gross profit
Other Operating income
Exchange gain / (Loss)
Selling & Distribution Cost
Operating profit
Finance costs
Profit before income tax
Income tax expense
Profit after income tax
2012
Rs.
Un audited
For the 03 Months ended 30th September
2013
Rs.
Unaudited
2012
Rs.
Unaudited
For the 03 Months ended 31st December
2013
Rs.
Unaudited
2012
Rs.
Unaudited
For the 03 Months ended 31st March
2014
Rs.
Unaudited
2013
Rs.
Unaudited
105,693
69,072
174,765
(154,032)
20,733
142,276
97,292
239,568
(206,748)
32,820
114,249
89,504
203,753
(171,124)
32,629
152,224
83,010
235,234
(194,765)
40,469
186,011
88,814
274,825
(229,684)
45,141
166,399
66,132
232,531
(196,581)
35,950
207,162
84,961
292,123
(252,146)
39,977
195,144
72,717
267,861
(234,057)
33,804
255
4,818
(4,330)
(15,521)
5,955
1,339
3,744
(8,211)
(13,825)
15,867
721
6,059
(3,638)
(16,019)
19,752
519
(885)
(5,179)
(15,500)
19,424
848
3,413
(7,174)
(16,238)
25,990
226
2,660
(6,931)
(15,608)
16,297
1,075
3,952
(7,147)
(24,287)
13,570
(186)
549
(6,364)
(18,975)
8,828
(1,596)
4,359
(921)
3,438
(2,322)
13,545
(644)
12,901
(974)
18,778
(2,035)
16,743
(3,017)
16,407
(2,598)
13,809
(1,115)
24,875
(3,105)
21,770
(2,456)
13,841
(1,491)
12,350
(1,244)
12,326
(2,193)
10,133
(1,810)
7,018
(528)
6,490
FINANCIAL POSITION
As at 30th June
2013
2012
Rs.
Rs.
Un audited
Un audited
As at 30 th September
2013
2012
Rs.
Rs.
Unaudited
Unaudited
As at 31 st December
2013
2012
Rs.
Rs.
Unaudited
Unaudited
As at 31 st March
2014
2013
Rs.
Rs.
Unaudited
Unaudited
Assets
Non-current assets
Property Plant & Equipment
Investments in Others
Intangible assets
Deferred Tax Assets
Current assets
Inventories
Trade & other receivables
Due from related companies
Income tax refund due
Total Assets
Equity and liabilities
Stated capital
General reserves
Retained earnings
Total equity
Liabilities
Non-current liabilites
Deferred Tax Liabilities
Retirement benefit obligations
Current liabilities
Trade and other payables
Short term borrowings
Bank overdrafts
Total liabilities
Total equity and liabilities
168,440
16,335
8,631
7,631
201,037
176,150
9,910
186,060
164,759
16,335
8,312
8,405
197,811
175,539
9,590
185,129
163,090
31,354
7,992
5,290
207,726
175,566
9,271
184,837
172,215
31,354
5,290
208,859
174,449
8,951
6,856
190,256
138,669
172,759
13,066
44,084
368,578
569,615
149,125
216,019
15,472
30,703
411,319
597,379
160,453
172,727
11,382
48,230
392,792
590,603
134,418
196,708
13,331
35,891
380,348
565,477
168,342
212,117
9,663
51,203
441,325
649,051
160,789
192,170
12,475
42,589
408,023
592,860
125,502
221,728
9,663
79,934
436,827
645,686
144,174
224,308
13,252
19,755
401,489
591,745
105,753
110,000
188,590
404,343
105,753
110,000
155,352
371,105
105,753
110,000
197,637
413,390
105,753
110,000
161,252
377,005
105,752
110,000
219,408
435,160
105,752
110,000
173,604
389,356
105,752
110,000
231,388
447,140
105,752
110,000
185,152
400,904
10,339
14,635
24,974
9,277
9,629
18,906
11,466
15,569
27,035
9,734
10,055
19,789
9,737
16,128
25,865
10,368
8,818
19,186
9,737
16,953
26,690
8,831
14,528
23,359
98,427
21,243
20,628
140,298
165,272
569,615
114,245
32,911
60,212
207,368
226,274
597,379
93,468
39,013
17,697
150,178
177,213
590,603
87,629
40,123
40,931
168,683
188,472
565,477
115,722
48,034
24,270
188,026
213,891
649,051
147,645
12,996
23,677
184,318
203,504
592,860
139,347
29,328
3,181
171,856
198,546
645,686
106,678
45,285
15,519
167,482
190,841
591,745
131
ten - year
economic summary
Economic Indicators
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
5.4
2,091.0
20.7
8.6
107.4
1,030.0
6.2
2,453.0
24.4
20.5
124.7
1,241.0
7.7
2,939.0
28.3
14.5
147.8
1,421.0
6.8
3,578.0
32.3
13.8
178.8
1,617.0
6.0
4,411.0
40.7
24.6
218.2
2,014.0
3.5
4,835.0
42.1
2.1
236.4
2,057.0
8.0
5,604.0
49.6
16.7
271.3
2,400.0
8.2
6,543.0
59.2
18.3
313.6
2,836.0
6.3
7,579.0
59.4
3.0
372.8
2,922.0
7.3
8,674.0
67.2
12.0
423.5
3,280.0
-7.5
-7
-7
-6.9
-7
-9.9
-8
-6.9
-6.5
-5.9
GDP Indicators
GDP growth
GDP (current prices)
GDP (current prices)
GDP per capita (USD) Growth
GDP per capita (market prices)
GDP per capita (market prices)
Per cent
Rs. billion
USD billion
Per cent
Rs (000)
USD
Fiscal policy Indicators

Budget deficit
Per cent of GDP
Monetory policy Indicators

12 month T-Bill yield (year-end)
Prime lending rate (year-end)
M2b money supply growth
Per cent
Per cent
Per cent
7.7
10.2
19.6
10.4
12.2
19.1
13
15.2
17.8
20
18.0
16.6
19.1
18.5
8.5
9.3
10.9
18.6
7.6
9.3
15.8
9.3
10.8
19.1
11.7
14.4
17.6
8.3
10.1
16.7
Other Economic Indicators

Inflation annual average (CCPI 2006/07=100)
Unemployment rate
All share index (year-end)
Population
Per cent
Per cent
Points
Million
8.3
1507
19.5
7.2
1922
19.7
6.5
2722
19.9
6
2541
20
5.4
1503
20.2
3.5
5.8
3386
20.5
6.2
4.9
6636
20.7
6.7
4.2
6074
20.9
7.6
4
5643
20.3
6.9
4.4
5913
20.5
External Sector Indicators

Exports USD
Imports USD
Balance of payments
Current account balance
Current account % of GDP
billion
billion
Per cent of GDP
USD billion
Per cent
5.8
8.0
(1.0)
(0.6)
(3.1)
6.3
8.9
2.1
(0.7)
(2.7)
6.7
10.3
0.7
(1.5)
(5.3)
7.7
11.3
1.6
(1.4)
(4.2)
8.1
14.1
(3.5)
(1.4)
(9.5)
7.1
10.2
6.5
(0.2)
(0.5)
8.6
13.5
1.9
(1.1)
(2.2)
10.6
20.3
(1.9)
(4.6)
(7.8)
9.8
19.2
0.3
(4.0)
(6.7)
10.4
18.0
1.5
(2.6)
(3.9)
100.5
125.1
0.9
2.3
104.0
130.6
0.9
2.3
110.6
151.6
0.9
2.7
108.3
159.3
1.1
2.5
114.9
160.2
1.2
2.4
113.1
150.1
1.3
2.5
110.6
153.9
1.4
2.4
127.6
164.0
1.6
2.4
129.1
171.5
1.3
2.2
4.8
-0.7
3.4
6.4
-2.1
6.1
-1.6
-2.2
15.4
1.2
94.7
115.0
1,064.0
104.4
116.0
1,144.0
109.2
120.0
1,128.0
117.6
120.0
1,261.0
129.2
122.0
1,382.0
136.9
124.0
1,437.0
152.9
126.0
1,561.0
158.2
129.0
1,566.0
152.0
131.0
1,459.0
130.4
132.0
1,219.0
127.2
127.3
141.0
148.0
202.2
204.7
234.2
234.5
269.5
278.4
211.7
202.3
403.0
377.5
508.8
535.4
416.6
420.7
376.9
389.8
ForiegnCurrency Indicators
Exchange rate (annual average)
Exchange rate change_ USD (annual average)
Rs/USD
Rs/Euro
Rs/Yen
Rs/INR
Per cent
Rubber Sector Information

Production
Total extent
Yield
Average price
Colombo Auction
Export (f.o.b)
kg mn
hectares 000
kg/hectare
Rs/kg
Rs/kg
132
ten - year
Financial summary
Year Ended 31st March
Income statement :
Turnover
Profit Before Taxation
Taxation
Profit After Taxation
Balance Sheet :
Capital And Reserves
Stated capital
Capital Reserves
Revenue Reserves
Shareholders funds
Non Current Liabilities
Interest Bearing Borrowings
Deferred Tax
Retirement Benefit Obligation
Total Equity & Non Current Liabilities
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
952,561 973,858
64,841 51,077
(8,491)
4,438
56,349 55,515
961,489 716,102 588,207 620,518 698,876 638,458 462,687 455,814

19,123 (55,980) (7,608)
14,533 70,012 63,424 25,605 45,692
696
(229)
(663)
(5,757)
(9,776) (13,297)
(6,235) (7,779)
19,820 (56,209) (8,271)
8,775 60,295 50,127 19,370 37,913
105,752
110,000
233,806
449,558
105,752
110,000
185,152
400,904
105,752 105,752 105,752 105,752 105,752 38,480 38,480 32,983

110,000 10,000 10,000 10,000 10,000 67,272 67,272 47,483
137,332 223,893 280,102 288,373 279,597 229,302 186,871 167,502
353,084 339,645 395,854 404,125 395,349 335,054 292,623 247,968
-
-
10,906
8,831
15,130 14,528
475,594 424,263
-
-
868
5,120 16,877 14,500 20,500

11,408 11,388 11,703 11,202
7,808 10,335
9,594
8,604
9,906
7,775
6,306
5,234
8,150
9,238
5,567
4,680
374,398 358,808 414,731 425,681 428,184 369,127 328,284 261,252
Assets Employed
Current Assets
424,020
Current Liabilities
(178,531)
Working Capital
245,488
Property, Plant & Equipment
179,751
Investment
50,354
Long-Term Loans
Share Issue Expenses
Total Assets Less Current Liabilities 475,594
Financial Highlights :
Operating Results
Net Profit (%)
Annual Sales Growth (%)
ROCE (%)
Financial Position
Quick Assets Ratio (Times)
Fixed Asset Turnover Ratio (Times)
Shareholder Information
Earnings Per Share (Rs.)
Dividends (Rs. 000)
Dividends Rate (%)
Market Price Per Share (Rs.)
Price Earnings Ratio (Times)
Net Assets Per Share ( Rs.)
402,853 388,248
(168,845) (208,197)
234,008 180,051
190,255 194,347
424,263 374,398
388,205
(222,481)
165,724
193,084
358,808
476,617
(232,670)
243,947
170,784
414,731
481,125
(231,810)
249,315
176,366
404,557
421,581
(176,186)
245,395
182,789
395,350
343,385
(116,794)
226,591
142,436
100
335,054
486,907
(283,562)
203,345
124,839
100
292,623
307,190
(141,788)
165,402
95,749
100
247,968
6
(2)
12.53
6
1.29
13.85
2.10
34.00
5.61
(7.85)
21.74
(16.55)
(1.41)
(5.21)
(2.09)
1.41
(11.21)
2.17
8.63
9.46
15.25
7.85
37.99
14.96
4.19
1.51
6.62
8.32
20.35
15.29
1.67
5.45
1.53
5.31
1.26
4.95
1.11
3.71
1.69
3.44
1.77
3.52
1.84
3.82
1.41
4.48
1.04
3.70
1.32
4.76
14.64
7,696
20
88.20
6.02
116.83
14.43
7,696
20
82.20
5.70
104.18
13.03
7,696
20
44.75
3.43
87.07
5.03
-
-
47.25
9.39
76.05
11.49
6,597
20
63.00
5.48
75.18
5.15 (14.61)
(2.15)
2.28
15.67
-
-
-
-
-
-
-
-
-
-
90.00 100.00
86.75
50.25
62.00
17.47
(6.85) (40.36)
22.43
3.95
91.75
88.27 102.87 105.02 102.74
133
FOreiGn
currency Financial statements

INCOME STATEMENT

Revenue
Cost of sales
Gross profit
Other income
Distribution cost
In USD'
(Major Import Currency)
2014
2013
7,234,897
7,420,048
(6,135,038)
(6,278,310)
1,099,858
1,141,738
In Euro'
(Major Export Currency)

2014
2013
5,374,617
5,334,456
(4,557,561)
(4,513,632)
817,056
820,824
17,335
(182,432)
(571,985)
13,328
(188,966)
(554,203)
12,877
(135,524)
(424,913)
9,582
(135,852)
(398,430)
Operating Profit
362,776
411,898
269,497
296,123
Finance Income
Finance cost
158,411
(28,710)
52,699
(75,431)
117,679
(21,328)
37,887
(54,229)
Net Finance Income
129,701
(22,731)
96,351
(16,342)
Profit before income taxation

Income tax expense
492,477
(64,488)
389,166
33,818
365,849
(47,906)
279,781
24,313
Profit for the year
427,990
422,985
317,942
304,094
STATEMENT OF FINANCIAL POSITION
AS AT 31st March
ASSETS
In USD'
(Major Import Currency)
2014
2013
Property, plant and equipment

Intangible Assets
Available for sale financial assets
Other Financial assets
Deferred tax assets
Non Current Assets
1,303,009
19,349
161,567
219,414
37,642
1,740,981
1,358,237
69,688
53,378
1,481,304
Inventories
Tax Recoverable
Current Assets
947,994
1,733,569
65,951
460,625
3,208,139
1,119,496
1,760,072
103,178
153,813
3,136,559
Total Assets
4,949,120
4,617,862
EQUITY AND LIABILITIES

Equity
3,401,366
3,121,388
196,986
181,871
1,102,278
248,491
1,350,769
1,547,755
4,949,120
841,189
473,414
1,314,603
1,496,475
4,617,862
Non- Current Liabilities

Current liabilities
Trade & other payables
Short Term Borrowings
Total Liabilities
Total Equity And Liabilities
In Euro'
(Major Export Currency)

2014
2013
1,015,244
15,076
125,885
170,957
29,329
1,356,491
738,633
1,350,716
51,386
358,897
2,499,633
3,856,124
2,650,186
1,042,782
53,503
40,981
1,137,266
859,489
1,351,288
79,215
118,090
2,408,081
3,545,347
153,482
858,843
193,613
1,052,456
1,205,938
3,856,124
139,631
645,820
363,462
1,009,282
1,148,913
3,545,347
2,396,434
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.
134
GlOssary
of Financial terms
1. Segment
Constituent business units grouped in terms of the nature and similarity of operations.
2. Annual Sales Growth
Percentage change over previous years gross turnover.
3. Current Ratio
Current assets divided by current liabilities.
4. Dividend Cover
Profit available for appropriation divided by gross dividend.
5. Dividend per Share
Total Gross Dividend divided by no. of shares at the end of the year.
6. Gross Dividend
Portion of Profits, inclusive of tax withheld, distributed to shareholders.
7. Dividend Rate
Gross Dividends declared per share.
8. Earnings per Share
Profit attributable to shareholders divided by the no. of shares issued.
9. Interest Cover
Profit from ordinary activities before tax and finance cost divided by finance cost.
10. Net Assets per Share
Net Assets divided by the no. of shares.
11. Price Earnings Ratio
Market Price per share divided by earnings per share.
12. Deferred Taxation
Sum set aside for tax in the financial statement that will become payable in a financial year
other than the current financial year.
13. Value Additions
The quantum of wealth generated by the activities of the Company.
14. Revenue Reserves
Reserve considered as being available for distributions and investments.
15. Capital Reserves
Reserves identified for specific purposes and considered not available for distribution.
16. Return on Capital Employed
Profit after interest, tax divided by capital employed or shareholders funds at the year end.
17. Shareholders Fund
Total of stated capital and revenue reserves.
18. Capital employed
Shareholders funds plus long - term bearing loans and borrowings.
19. Average Capital Employed
Mean of two consecutive years capital employed.
20. Corporate Governance
A system by which Companies are directed and controlled by the management in the
best interest of the stakeholders ensuring greater transparency through better and timely
financial reporting.
21. Market Capitalization
Number of ordinary shares in issue multiplied by the Market Value per share at the balance
sheet date.
22. Related Parties
Parties who could control or significantly influence the financial and operating policies of
the business.
23. Intangible Assets
An intangible asset is an identifiable non-monetary asset without physical substance.
24. Impairment
This occurs when the recoverable amount of an asset is less than its carrying amount.
25. Fair value
This is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties at arms length transaction.
135
nOtice
of Meeting
NOTICE IS HEREBY GIVEN that the Twenty Second Annual General Meeting of Samson International PLC will be held on Friday the
19th day of September 2014 at the Sri Lanka College of Obstetricians and Gynaecologists, Samson Rajapaksa Auditorium at No.
112, Model Farm Road, Colombo 08 at 2.00 p.m. for the following purposes:
1.
To receive and consider the Annual Report of the Board of Directors on the affairs of Company and the Financial
Statements the year ended 31st March 2014 and the Report of the Auditors thereon.
2.
To re-elect Mr. D R Rajapakse who retires by rotation in terms of Article 88(i) of the Articles of Association, as a
Director of the Company.
3.
To re-elect Mr. T K Bandaranayake who is 71 years of age, as a Director of the Company and to adopt the following
resolution:-
IT IS HEREBY RESOLVED THAT Mr. T K Bandaranayake who is 71 years of age be and is hereby re-elected as a
Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act,No.7
of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr. T K
Bandaranayake.
4.
To re-elect Mr. G H A Wimalasena who is 73 years of age, as a Director of the Company and to adopt the following
resolution:-
IT IS HEREBY RESOLVED THAT Mr.G H A Wimalasena who is 73 years of age be and is hereby re-elected as a Director
of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act, No.7 of 2007 that
the age limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr.G H A Wimalasena.
5.
To re-appoint Messrs HLB Edirisinghe & Co. Chartered Accountants as Auditors of the Company for the ensuing year
and to authorize the Directors to determine their remuneration.
6.
To authorize the Directors to determine donations for the year ending 31st March 2015 and up to the date of the
next Annual General Meeting.
By Order of the Board
SAMSON INTERNATIONAL PLC
P W Corporate Secretarial (Pvt) Ltd

Secretaries
August 1st, 2014.
Colombo
Notes:- 1. A shareholder is entitled to appoint a Proxy to attend and vote at the meeting on his/her behalf.
2. A Proxy need not be a shareholder of the Company.

3. A Form of Proxy accompanies this Notice.
4. The completed Form of Proxy should be deposited at the Registered Office of the Company, No. 110, Kumaran Ratnam
Road, Colombo 02, not less than 48 hours before the time for holding the Meeting.
136
nOtes
138
FOrM
of proxy
*I/We of being* a
shareholder/ shareholders of SAMSON INTERNATIONAL PLC, do hereby appoint of
or failing *him/her*
Dr. D S Rajapaksa

of Colombo or failing him*
Mr. D K Rajapaksa

Mr. D M Rajapaksa

Mr. D R Rajapaksa

Mr. C Cumaratunge

Mr. B L P Jayawardena


Mr G H A Wimalasena

Mr. D G P S Abeygunawardana

of Colombo
as *my/our Proxy to represent me/us*, to speak and vote for *me/us on *my/our behalf at the Twenty Second ANNUAL GENERAL MEETING OF THE
COMPANY to be held on 19 September 2014 at 2.00 p.m. and at any adjournment thereof, and at every poll which may be taken in consequence
thereof.
FOR
AGAINST
1.
To receive and consider the Annual Report of the Board of Directors on the affairs of Company and the
Financial Statements for the year ended ended 31st March 2014 and the Report of the Auditors thereon.
2.
To re-elect Mr. D R Rajapakse who retires by rotation in terms of Article 88(i) of the Articles of Association,
as a Director of the Company.
3.
To re-elect Mr. T K Bandaranayake who is 71 years of age, as a Director of the Company and to adopt the
following resolution:-
It is hereby resolved that Mr T K Bandaranayake who is 71 years of age be and is hereby re-elected as a
Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act
No.07 of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not
apply to Mr T K Bandaranayake.
4.
To re-elect Mr. G H A Wimalasena who is 73 years of age, as a Director of the Company and to adopt the
following resolution:-
IT IS HEREBY RESOLVED THAT Mr.G H A Wimalasena who is 73 years of age be and is hereby re-elected
as a Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies
Act, No.7 of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not
apply to Mr.G H A Wimalasena.
5.
To re-appoint Messrs H L B Edirisinghe & Co. Chartered Accountants as Auditors of the Company for the
ensuing year and to authorize the Directors to determine their remuneration.
6.
To authorize the Directors to determine donations for the year ending 31st March 2015 and upto the date
of the next Annual General Meeting.
Signed this day of .. Two Thousand and Fourteen.
*Signature/s
Note:
1) *Please delete the inappropriate words.

2) Instructions as to completion are noted on the reverse hereof.
139
INSTRUCTIONS AS TO COMPLETION
1.
Kindly perfect the Form of Proxy after filling in legibly your full name and address and sign in the space provided.
Please fill in the date of signature.
2.
A shareholder entitled to attend and vote at the Meeting is entitled to appoint a Proxy who need not be a shareholder,
to attend and vote instead of him. Please indicate with an X in the boxes provided how your Proxy is to vote on each
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.
The completed Form of Proxy should be deposited at the Registered Office of the Company, No. 110, Kumaran Ratnam
Road, Colombo 02, not less than Forty Eight (48) hours before the appointed time for the Meeting.
140
DSI ieika iuqy jHdmdrhSh f;aud .S;h

hq. hq. jkaokSh f
isiem kkaokSh f
ishrg foa isiem foa
isysler jkaokSh jq
ieika mS;D kdufhka
huq ch f $$
;drm;S ,S ,S ;a ljr wdldfia
ojiam;S ke.S ke.S huq fyg bjk f,dafla
jdish muKla fidhd is
cd;sh msfyhs .rd je
foafig jev we;s foag re
cd;sl fy<lu mduq wms
foai foafiys kdf /|s
fPao fkdjk rkaodf wms $$
;r je ;a Wkqka mrojk ksmehq rK uf,a
mKg jvd ,e ksialug wm fkdue; ks.d
fokafka
W;aidyh Wla .ila fj;S
tys wm kqgqj rila ke;S
il t<sfhka yuqj ks;S
f,daflg mykla fjuqj wms
iduQyslj ne|s mjqre bf
tiawhs mqrjeisfhda wms $$
SAMSON INTERNATIONAL PLC.

Corporate Office:
No. 110, Kumaran Rathnam Road, Colombo 02, Sri Lanka.
Tel : +94 11 4728800 Fax : +94 11 2440890
E-mail : info@dsisamson.com Web : www.samsonint.com
142

Sri Lanka Telecom

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sri Lanka Telecom

Uploaded by

Copyright:

Available Formats

SamSon international PlC annual report 2013/14

Evolution of the Company

The parent Company was

1988 Samson International Ltd. was incorporated as a Private Company on

2009- Purchased all assets of Aksel Rubber Mat Company, Kalutara

Our Corporate Vision, Mission, Values and our Aim

Chairmans review In English

Chairman s review in Sinhala

Managing Directors operational review

The Board of Directors

Management discussion & analysis

Report of the Board of Directors

Statement of Directors responsibilities

Audit Committee Report

Remuneration Committee Report

Global Reporting Initiative

Four-Quarter Financial Summary

Ten- year Economic Summary

Ten-year Financial Summary

Foreign Currency Financial Statement

Glossary of Financial Terms

Notice of the AGM

Direction to the venue of the AGM

Profit before tax increased by 27% or Rs. 13.7mn

Finance Cost (Rs. 000)

Fixed Asset Turnover Ratio (Times)

Net Assets Per Share (Rs.)

Samson international PLC Annual Report 2013/14

Profit before tax

Profit after tax

Gross profit to Sales

Cash generated from operations

Dividend per share

Market price per share - Closing

Earnings per share

Net assets per share

Number of shares issued

Value additions per employee

Price earnings ratio

SamSon international PlC annual report 2013/14

Vision, Mission, Values and aim

SamSon international PlC annual report 2013/14

It is observed that currently, more than half of

t is my pleasure to present the Annual Report of Samson

you are aware, Samson International Plc was incorporated on

Global Economic outlook

World Economic Output Growth (%)

Source : IMF World Economic Outlook Report of April 2014

SamSon international PlC annual report 2013/14

cHairMans statement (contd...)

According to IMF World Economic Outlook Report of April

Economic Growth (%)

Emergind and Devoloping Asia

Japan, UK and Canada have advanced economies. The

economic activities in these countries struggled in the first half

Source : IMF World Economic Outlook Report of April 2014

2.2 percent in 2014. Key drivers of such growth will be a

When we look at the foreign currency trends, for some

accommodative monetary measures . Growth will be strongest

currencies the foreign exchange market was highly volatile. The

Japanese Yen recorded 18.1 percent depreciation against the

growth is projected to be positive but varied area depending on

dollar where currencies such as the Euro, Sterling Pound and