C ontents

Corporate Information ................................................................. 2

Notice of Meeting ....................................................................... 3

Deputy Chairman’s Review ......................................................... 4

Annual Report of the Board of Directors .............................. 5 - 6

Share Information .................................................................. 7 - 8

Corporate Governance ........................................................ 9 - 10

Audit Committee Report ............................................................ 11

Statement of the Directors' Responsibility ................................ 12

Auditors’ Report ......................................................................... 13

Income Statement ...................................................................... 15

Balance Sheet ............................................................................ 16

Cash Flow Statement ................................................................. 17

Statement of Changes In Equity ................................................ 18

Notes to the Accounts....................................................... 19 - 35

Financial Information - Six Year Summary ............................... 36

Form of Proxy

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C orporate Information
BOARD OF DIRECTORS AUDITORS
Composition as at 31st December 2009
Messers L M Associates
Rear Admiral B A J G Peiris
(Chairman) Chartered Accountants
(Appointed w.e.f 11/09/2009 & Resigned w.e.f 07/04/2010)
LEGAL STATUS
S R Wijesinghe Incorporated under the Companies Act No
Dip. (Bus.Admin.), FICM, MBIM 17 of 1982.
(Deputy Chairman) Date of Incorporation – 3rd September 1992.
A Public Limited Liability Company listed
M A D A I Madurapperuma
AIB, FCMA, MBA, CFA on the Colombo Stock Exchange with BOI
(Resigned w.e.f 07/04/2010) status.
The Company was re-registered under the
H L Gunasekara
Companies Act No. 7 of 2007 and the
Director
Company Registration No is PQ 151.
M L P Jayatillaka
FCA, FSCMA, MBA PRINCIPAL ACTIVITIES AND NATURE OF
OPERATIONS
R Nadarajah
Bsc(Hons), MBA, FCIB (London) The principal activities of the Company
were development of property located at
S Palihawadana
Bsc No. 90, Galle Road, Colombo 03 &
administration and maintance of the same and
SECRETARIES & REGISTRARS activities relating to property developments.
International Consulatancy & Corporate
Services (Pvt) Ltd.
No. 35/1, Dickman's Road, PARENT ENTERPRISE
Colombo 05
The company's parent undertaking is Seylan
LAWYERS Bank PLC.
M/s De Livera Associates
Attorneys-at- Law & Notaries Public

REGISTERED OFFICE
97, Hyde Park Corner,
Colombo 2.

BUSINESS ADDRESS
Seylan Towers,
Level 15,
90, Galle Road,
Colombo 3.
Phone : 011-2452697-8
Fax : 011-2423249
E-mail : ceylincoseylan@sltnet.lk

BANKERS
Seylan Bank PLC
Hatton National Bank PLC
People’s Bank
Commercial Bank PLC
Deutsche Bank AG
Bank of Ceylon

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Notice of Meeting
NOTICE IS HEREBY GIVEN THAT the Eighteenth
Annual General Meeting of Seylan
Developments PLC will be held on Wednesday,
28th July 2010 at 10.30 a.m. at the “Raja Bojun”
Restaurant, Seylan Towers, No. 90, Galle Road,
Colombo 3
AGENDA
1. To receive and adopt the Report of the
Directors and the Statement of Audited
Accounts for the year ended 31st December
2009 and to receive the Report of the
Auditors thereon.
2. To re-elect Mr. M.L.P. Jayatilaka, the Director
who retires by rotation in terms of Article
93(a) of the Company's Articles of Assciation,
as a Director.
3. To re-elect Mr. R. Nadarajah who retires in
terms of Articles 85(a) being a director
appointed during the year.
4. To re-elect Mr. S. Palihawadana who retires
in terms of Articles 85(a) being a director
appointed during the year.
NOTES
- A Member is entitled to appoint a proxy
to attend and vote for him/her.
- A proxy holder need not be a member
of the Company.
- A form of proxy is enclosed for this
purpose.
- The instrument appointing a proxy
should be deposited at International
Consultancy & Corporate Services (Pvt)
Ltd., No.35/1, Dickman’s Road,
Colombo 5 not less than 48 hours
before holding of the meeting.
- Shareholders/Proxy Holders attending
the Annual General Meeting are kindly
requested to bring with them their
National Identity Cards or any other
forms of valid identification

5. To appoint Messers KPMG Ford Rhodes

Thornton & Company, Chartered
Accountants in place of the retiring auditor
L M Associates.

6. To authorize the Directors to determine

contributions to charities and other
donations for the year 2010.

7. To transact any other business of which due

notice has been given.

By Order of the Board

Sgd.
International Consultancy & Corporate
Services (Pvt) Ltd.
Date : 26th May 2010

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Deputy Chairman's Review
It is with great pleasure that I welcome you on
behalf of the Board of Directors of Seylan
Developments PLC to our 18 Annual General
Meeting and present the Directors Report and the
Audited Accounts for the financial year ended 31
December 2009. Continuing from the pervious
years we have maintained our focus on our core
business of leasing of office spaces and luxury
apartments while implementing strategies to
generate additional income from other sources
too.
As I anticipated in my statement to you last year
the property market towards the end of the
financial year 2009, did show an appreciation in
value mainly due to the peaceful country situation
during the latter part of the year unlike the previous
year where we had to absorb a huge value
impairment in our profit & loss account.
Consequently, we have been able to acquire a
fair value gain of Rs. 115,149,393 Mn to the
profit and loss account during the financial year
under review. We anticipate a further value
enhancement in the current year and hopefully
will be able to announce a further value addition
to our business.
Our loss of Rs. 141,391,937 shows a reduction
from the previous year Rs. 392,467,351. The loss
in the year under review is mainly due to the
high finace cost of Rs. 193,313,562 we are forced
to incur due to our high exposures to bank
borrowings. Therefore, we anticipate making some
strategic capital restructuring to our business model
in order to overcome this situation in 2010.
S E Y L A N D E V E L O P M E N T S P L C .
4
Despite of the prevailed adverse economic
conditions, you may observe that we have
managed to keep the 'increase of expenses' to a
bare minimum. In addition, we have subsequently
taken some drastic cost-reduction measures to
reduce operation costs in the present financial
year, 2010.
The credit must be given to the management and
the Staff for their commitment & hard work under
trying conditions that prevailed during most of
2009. Further, I also wish to express my gratitude
to the new Boad of Directors for their valuable
support and advice.
I also wish to thank all the past Board Members
for their contribution made for the betterment of
the Company during their tenors.
Finally, on behalf of the Board of Directors I take
this opportunity to thank our tenants for their
continuous business partnership and also our
shareholders for the confidence placed in the
Company.
S. R. Wijesinghe
Deputy Chairman
25th May 2009
A N N U A L R E P O R T 2 0 0 9
Annual Report of the Board of Directors'
The Directors have pleasure in presenting their A D Jegasothy
Report together with the Audited Accounts of (Resigned w.e.f 07/09/2009)
the Company for the year ended 31st Dr. J L B Kotelawala
December 2009 (Resigned w.e.f 11/09/2009)
K P H Priyankara
PRINCIPAL ACTIVITY (Resigned w.e.f.11/09/2009)
The principal activities of the Company were
development of property located at No. 90, RETIREMENT OF DIRECTORS
Galle Road, Colombo 03 & administration and In terms of Articles 93 (a) Mr. Mahendranath
maintainance of the same & activities relating Lasantha Perera Jayatilaka retires by rotation
to propery developments. and being eligible offers himself for re-election

REVIEW OF OPERATIONS In terms of Articles 85 (a) Mr. Ramanathan

A review of the Company’s performance is Nadarajah and Mr. Somadasa Palihawadana
contained in the Deputy Chairman’s Review the Directors appointed during the year retired
appearing on page 4 of the Annual Report. this Annual General Meeting and being eligible
offer themselves for re-election.
FINANCIAL STATEMENTS
The financial statements of the Company are APPOINTMENTS OF DIRECTORS
given on Page 15-35 Mr. Ramanathan Nadarajah, Mr. Somadasa
Palihawadana and Rear Admiral B A G J Peiris
ACCOUNTING POLICIES (Resigned w.e.f.07/04/2010) were appointed
The accounting policies adopted in preparation as Directors of the Company with effect from
11th September 2009.
of Financial Statements are given on pages
19 to 22. There were no material changes in
the Accounting Policies adopted. SHAREHOLDINGS OF DIRECTORS
The Shareholdings of the Directors of the
Company is given on page 7 of the Annual
DIRECTORS AND THEIR SHAREHOLDINGS
Report.
The following were the Composition of
Directors as at 31 December 2009.
DIRECTORS’ REMUNERATION AND
OTHER BENEFITS
Rear Admiral B.A.J.G.Peiris Directors' remuneration in respect of the
(Resigned w.e.f.07/04/2010) Comapny for the finacial year ended 31st
S R Wijesinghe December 2009 is given in Note 28.2 to the
M A D A I Madurapperuma financial statements.
(Resigned w.e.f. 07/04/2010)
H L Gunasekara DIRECTORS’ INTERESTS IN CONTRACTS
M L P Jayatilaka The Directors have no direct or indirect interest
R Nadarajah in contracts with the company other than those
S Palihawadana disclosed in Note 28 to the Accounts and
these interests have been disclosed at Meetings
RESIGNATION / APPOIMENT OF DIRECTORS of the Directors in accordance with Section
The resignations/ appoiments of Directors 192 of the Companies Act No. 7 of 2007.
during the year under review is given
below. INTEREST REGISTER
The Company maintains an Interest Register
R Nadarajah and the particulars of those Directors who
(Appointed w.e.f.11/09/2009) were directly or indirectly interested in a
S Palihawadana contract of the Company are stated therein.
(Appointed w.e.f.11/09/2009)
RearAdmiral B A J G Peiris INVESTMENTS
(Appointed w.e.f.11 09/2009) Investments made by the Company are
Lady. Dr. S P C Kotelawala disclosed in Note/(s) 13 & 14 to the
(Resigned w.e.f 02/01/2009) Accounts appearing on page 27, 28 of the
W G B M Ranaweera Annual Report.
(Resigned w.e.f 21/01/2009)
R Renganathan FIXED ASSETS
(Resigned w.e.f 15/05/2009) The changes in Fixed Assets during the year
T N M Peiris under review are set out in Note 11 to the
(Resigned w.e.f 11/08/2009) Accounts appearing on pages 25, 26, 27 of
the Annual Report.

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Annual Report of the Board of Directors' (Contd.)
CAPITAL COMMITMENTS
There are no material capital commitments
that would require disclosures in the financial
statements.
STATED CAPITAL
There was no change in the stated capital of
the company during the year under review.
The Stated Capital is shown in Note 20 to the
Accounts appearing on page 29 of the Annual
Report.
DIVIDENDS
The Directors do not recommend a dividend
to be declared to its ordinary shareholders for
the year ended 31st December 2009.
ENVIRONMENT, HEALTH & SAFETY
All the laws and regulations in this regard are
strictly adhered to.
CORPORATE GOVERNANCE/ INTERNAL
CONTROL
The Company has put in place systems and
procedures to ensure the implementation of
sound corporate governance principles. The
Audit Committee Report is given on page 11
CONTINGENT LIABILITIES
There were no material contingent liabilities
outstandings as at 31st December 2009 other
than those disclosed in Note 26 to the financial
statements.

RESERVES AUDITORS
The total reserves as at 31st December 2009 The Finacial Statements for the year ended
were Rs. 792,463,442 31st December 2009 have been audited by
Messrs L M Associates Chartered Accountants.
EMPLOYMENT POLICIES
The Company gives an equal opportunity to L M Associates retire at this AGM and are not
all employees without any discrimination. willing to be re-appointed. The Board has
decided to appoint Messers KPMG Ford Rhodes
TAXATION Thornton & Company, Chartered Accountants
The tax position of the Company is given in to fill this vacancy.
Note 8 to the Financial Statements.
The Audit fees paid to Messrs L M Associates
CONTRIBUTION TO CHARITIES Rs. 545,075 (2008 - Rs. 404,030) As far as the
There ware no contribution to charities during Directors are aware, the Auditors do not have
the year under review. any relationship (other than that of an Auditor)
with the Company other than those disclosed
SHAREHOLDINGS above. The Auditors also do not have any
There were 6,107 shareholders as at 31st interest in the Comapny. The Auditor's Report
December 2009 and the distribution is shown on the financial statements in given on Page
on page 7 of the Annual Report. The twenty 13.
major shareholders are shown on page 8 of
the Annual Report. ANNUAL GENERAL MEETING
The 18th Annual General Meeting of the
EVENTS AFTER THE BALANCE SHEET DATE Company will be held at the “Raja Bojun”
Subsequent to the date of the Balance Sheet Restaurant, Seylan Towers, No. 90, Galle Road,
no circumstances have arisen which would Colombo 3 on 28th July 2010 at 10.30 a.m.
require adjustments to the accounts. Significant
post balance sheet events which in the opinion By Order of the Board
of the Directors require disclosure are described (Sgd.)
in Note 27 to the financial statements. Authorised Signatory
International Consultancy & Corporate
DISCLOSURE AS PER COLOMBO STOCK Services (Pvt) Ltd.
EXCHANGE RULE NO.8.7 Secretaries
26th May 2010
Shares
31.12.09 01.12.08
Market price per share
as at December 9.50 4.50
Highest share price
during the year 13.25 5.50
Lowest share price
during the year 4.70 3.70

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Share Information
SHAREHOLDINGS ANALYSIS

RANGE OF NO OF SHARE TOTAL NUMBER % AS AT

SHARE HOLDING HOLDERS OF SHARES
31-12-2009 31-12-2008

1 - 1,000 3,479 855,998 1.16 0.51

1,001 - 10,000 2,171 6,226,721 8.42 3.38
10,001 - 100,000 416 10,485,693 14.17 2.77
100,001 - 1,000,000 35 9,170,184 12.39 4.55
Over 1,000,000 6 47,243,834 63.86 88.79

TOTAL 6,107 73,982,430 100 100

Percentage of Public Share Holding 47.58% 43.70%

DIRECTORS’ SHAREHOLDINGS
NO. OF SHARES NO. OF SHARES
NAME OF THE DIRECTOR
31 - 12 - 2009 31 - 12 - 2008

Deshamanya Dr J L B Kotelawala (Resigned) 176,674

S R Wijesinghe (including joint holdings) 10,840 10,840
Lady Dr S P C Kotelawala (Resigned) 128,140
T N M Peiris (Resigned) 36,720
A D Jegasothy (including joint holdings) (Resigned) 23,470
W G B M Ranaweera (Resigned) 10
R Renganathan (Resigned) 2,550
M A D A I Madurapperuma 1,530 1,530
(Resigned w.e.f 07/04/2010)
H L Gunasekara 1,000 1,000
M L P Jayatilaka (joint holdings) 10,200 10,200
K P H Priyankara (Resigned) 1,000
Rear Admiral B A J G Peiris _ _
(Resigned w.e.f 07/04/2010)
R Nadarajah _ _
S Palihawadana _ _

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Share Information (Contd.)
Twenty Major Share Holders.

NO. OF SHARES NO. OF SHARES

NAME OF SHAREHOLDER % %
31- 12- 2009 31- 12- 2008
Seylan Bank PLC 37,203,584 50.29 37,203,584 50.29

Pershing LLCS/A Averbach Grauson & Co. 5,528,100 7.47 5,528,100 7.47
Employees’ Trust Fund Board 1,989,000 2.69 1,989,000 2.69

Mrs. M M Udeshi (DFSC) 1,287,900 1.74 1,287,900 1.74

Ceylinco Insurance Co, PLC -A/C-02 (Genaral Fund) 1,235,250 1.66 511,020 0.69

Mr. M M Udeshi 853,462 1.15 853,462 1.15

Mr. L V Chinthaka Nishantha 800,000 1.08 _ _

J B Cocoshell (Pvt) Ltd 723,800 0.98 _ _

Asian Guild Finacial Services (Pvt) Ltd 621,303 0.84 609,121 0.82

Zagara Investment Consultants (Pvt) Ltd 621,614 0.84 817,500 1.10

Mr. A Sithapalam 581,700 0.79 _ _

Mr. L M S H Alnqib 500,00 0.68 _ _

Mr. A Van Dustenbrugge 327,828 0.44 321,400 0.43

Ceylinco Insurance Co. PLC -A/C-01 (Life Fund) 245,584 0.33 535,500 0.72

First Capital Markets Ltd 235,000 0.32 _ _

Greenstone (Pvt) Ltd 209,500 0.28 _ _

Mr. B R Madihahewa 206,500 0.28 _ _

Mr. A Singh 204,200 0.28 _ _

Mr. P Polwatte Gamage 191,200 0.26 _ _

Mrs. S Umeshwary 178,500 0.24 _ _

TOTAL 53,920,699 72.88 55,437,775 74.91

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Corporate Governance
Corporate Governance emphasizes the need to
balance the achievement of corporate objectives
against the need for a sound framework of controls,
in the best interests of all shareholders, while
maintaining a high standard of industrial and
professional ethics.
Seylan Developments PLC aspires to adhere to
the best practices of Corporate Governance and
except as noted, complies with and observes
Compliance and disclosure requirements of
Colombo Stock Exchange, in accordance with
guidelines issued by the Securities and Exchange
Commission of Sri Lanka, the Code of Best
Practices in Corporate Governance recommended
by the Institute of Chartered Accountants of Sri
Lanka and provisions relating to disclosures and
compliances outlined in the Companies Act No 7
of 2007.
1. COMPOSITION AND ATTENDANCE AT
MEETINGS
The Board consists of the Chairman, two Executive
Directors including the Deputy Chairman and the
Director/General Manager and four non Executive
Directors.
2. FORMULATION OF STRATEGIES
The Board is responsible for the formulation of
overall business policy and strategy, agreeing on
priorities and setting standards for the management
and the conduct of the business. It reviews
exposure to key business risks, the strategic
direction and annual budget, their progress
towards achieving those budgets and their capital
expenditure.
3. SUPPLY OF INFORMATION
Directors receive quarterly reports of performance
and Minutes of regular Meetings.
4. INTERNAL CONTROL
The Board is responsible for the company’s system
of internal control and its effectiveness. The system
ensures proper use of assets and ensures that
proper records are maintained. It includes all
controls including financial, operational and risk
management. Reasonable care is taken to prevent
errors and irregularities and to correct same if
any such matter is detected as early as possible.
5. NOMINATIONS COMMITTEE

The Board meets once in two months as a routine. The Board Nomination Committee decides on
Additional meetings are held when necessary. the appointment of Directors and senior officers
Follwing is the Board Composition on 31 Its responsibilities include succession planning
December 2009. for the Board as well as reviewing its structure,
size and composition. The Nomination Committee
Director Non Independent comprises of three Directors. It meets as and
Executive
when required.
Rear Admiral B A J G Peiris
(Resigned w.e.f 07/04/2010) Yes Yes The members of the nomination committee are:
Mr S R Wijesinghe No No
1. Rear Admiral B A J G Peiris
M A D A I Madurapperuma
(Resigned w.e.f 07/04/2010)
(Resigned w.e.f 07/04/2010) Yes Yes
Mr H L Gunasekara Yes No 2. Mr S Pallihawadana
Mr M L P Jayatilaka No No
3. Mr R Nadarajah
Mr R Nadarajah Yes Yes
Mr S Palihawadena Yes Yes

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Corporate Governance (Contd.)
6. AUDIT COMMITTEE 7. REMUNERATUION COMMITTEE

The Audit Committee consists of 3 Non-Executive
Directors and 1 Executive Director. It is chaired
by a Non-Executive Director, who possesses a
wealth of knowledge & experience with respect
to financial accounting. The Audit Committee
meets at least twice a year. The External Auditors
attend Meetings when their presence is necessary.
The internal audit function is outsourced and audits
are carried out as per plan agreed by the Audit
Committee.
The remuneration committee consists of 3 Non –
Executive Directors comprising of the following:
1. Rear Admiral B A J G Peiris (Resigned w.e.f 07/04/2010)
2. Mr S Pallihawadana
3. Mr R Nadarajah
Compliance with the Colombo Stock Exchange
Rules on Corporate Governance.

The members of the Audit committee are:
1. Mr. S.Palihawadana - Chairman
2. Mr S R Wijesinghe - Committee Member
The company complied with the rules on
corporate governance of the Colombo Stock
Exchange and the Annual Report contains the
relevant affirmative statement. The table
confirming with the said rules is given below.

3. Mr R Nadarajah - Committee Member

4. M A D A I Madurapperuma (Resigned w.e.f 07/04/2010)

Rule Subject Applicable Requirement Adherence

7.10.1 (a) Non Executive Directors At least two or one third of the total number of Directors
should be non-executive Directors Complied

7.10.2 (a) Independent Directors At least two or one third of Non-Executive Directors Complied
appointed to the Board of Directors should be
independent.

7.10.5 Remuneration Committee A listed company shall have a Remuneration Complied

Committee

7.10.5 (a) Composition of The Remuneration Committee shall comprise Complied

Remuneration Committee Non-Executive Directors a majority of whom shall be
independent.

7.10.6 Audit Committee A Listed company shall have an Audit Committee. Complied

7.10.6 (a) Composition of Audit The Audit Committee shall comprise Non-Executive Complied
Committee Director a majority of whom shall be independent.

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10
Audit Committee Report
The Audit Committee comprises four Directors of the
Board of whom, the Chairman is a Non-Executive
Director and the Head of the Internal Audit Division.
A partner of Messrs. L M Associates (External Auditors)
also attend these meetings by invitation.

During the Meetings, the Audit Committee reviewed

the effectiveness of the internal control system. The
Statutory Accounts and Financial Statements to be
published are considered to ensure compliance with
regulatory requirements.

The Board of Directors of Seylan Developments PLC

appointed new members to the Audit Committee on
17th December 2009.

The Audit Committee recommends Messers K P M G

Ford Rhodes Thornton & Company, Chartered
Accountants as the Auditors for the Company to replace
Messers L M Associates who have forward their
resignation.

Mr.S.R.Wijesinghe
For Chairman
Audit Committee
26th May 2010

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Statement of the Directors' Responsibility
The Company’s Financial Statements for the Year 2009
prepared in this report are in conformity with the requirements
of the Sri Lanka Accounting Standards and the Companies
Act No 7 of 2007. The Financial Statements reflect a true and
fair view of the state of affairs of the company as at that date.

The Board of Directors have instituted an effective and

comprehensive system of Internal Controls. This comprises
internal checks, internal audit and the whole system of financial
and other controls required to carry on the business of the
company in a proper manner, safeguarding the assets and
securing the accuracy and reliability of the records.

The Auditors of the Company, Messrs. L M Associates carry

out reviews and test checks on effective internal controls, as
they consider appropriate and necessary for providing their
opinion on the Financial Statements.

The Board of Directors oversee the management responsibility

for financial reporting at their monthly regular meetings where
the monthly Management Accounts are reviewed.

Messrs. L M Associates have examined the Financial Statements

made available to them together with all other records and
related information and have expressed their opinion which
appears on page 13 of the Annual Report.

By Order of the Board

Sgd
Authorized Signatory
International Consultancy & Corporate Services (Pvt) Ltd
Secretaries

Date : 26th May 2010

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Auditors' Report L M ASSOCIATES
CHARTERED ACCOUNTANTS
30 - 2/1, Galle Road,
Colombo 06,Sri Lanka.
Tel: +94 (11) 2501677, 5667829, 5624303
Fax : +94(11) 2507522
E-mail : Lmassociates.lk

INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS OF SEYLAN DEVELOPMENTS PLC
Report on the Financial Statements
We have audited the accompanying financial statements of Seylan Developments PLC, (hereinafter also referredd
as " the Company"), which comprise the balance sheet as at 31st December 2009, and the income statements,
statement of changes in equity and cash flow statement for the year ended, and a summary of significant
accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements 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 reasonable assurance whether the financial statements are free from material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
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.
Opinion
In our opinion, so far as appears from our examination, the Company maintained proper accounting records for
the year ended 31st December 2009 and the financial statements give a true and fair view of the Company’s state
of affairs as at 31st December 2009 and of its loss and cash flows for the year then ended in accordance with
Sri Lanka Accounting Standards.
Report on Other Legal and Regulatory Requirements
In our opinion, these financial statements also comply with the requirements of Section 151(2) of the Companies
Act No. 07 of 2007.

L M ASSOCIATES
Chartered Accountants
Colombo
08th February 2010

PARTNERS : P. E. A. Jayewickrema, M. B. Ismail, Ms. A. M. J. Patrick, T. Krishnakumar, Ms. S.L. Jayasuriya, D.S.W. Andradi,
G.J. David, Ms. F.M. Marikkar, Ms. M.S.J. Henry, Ms. A.U.M. Keppetipola, M. Thavaraj

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Financial Statements
Income Statement ...................................................... 15

Balance Sheet ............................................................ 16

Cash Flow Statement ................................................. 17

Statement of Changes In Equity ................................ 18

Notes to the Accounts.......................................... 19-35

Financial Information - Six Year Summary ............... 36

I ncome Statement
FOR THE YEAR
(Restated)
2009 2008
NOTES Rs. Rs.

Rental Income 139,751,049 148,881,839

Other Income 3 15,183,877 37,888,679

Total Revenue 154,,934,926 186,770,518

Less: Operating Expenses (205,320,105) (182,679,882)

Profit / (Loss) from operations 4 (50,385,179) 4,090,636

Changes in fair value of investments properties 5 115,149,393 (29,329,592)
Allowance for impairment in investments in Property
Development Project & fall in value of Shares 6 (12,180,000) (256,063,333)
52,584,214 (281,302,289)
Finance Cost 7 (193,313,562) (104,103,440)
Net Profit/(Loss) Before Taxation (140,729,348) (385,405,729)
Income Tax Expense 8 (662,589) (7,061,622)

Net Loss After Taxation (141,391,937) (392,467,351)

Loss Per Share 9 (1.91) (5.30)

Net Asset per Share 10 29.04 30.95

Market Value per Share 9.50 4.50

N. B. The Accounting Policies and Notes from Pages 19 to 35 form an integral part of these Financial
Statements.

S E Y L A N D E V E L O P M E N T S P L C . A N N U A L R E P O R T 2 0 0 9
15
Balance Sheet
(Restated)
AS AT 31.12.2009 31.12.2008
Rs. Rs.
ASSETS NOTES
Non-Current Assets
Property, Plant & Equipment 11 1,372,040,288 1,402,102,935
Investment Properties 12 1,266,643,325 1,151,493,932
Investment in Property Development Projects 13 209,499,998 459,007,786
Investments in Securities 14 27,243,823 39,323,823
2,875,427,434 3,051,928,476
Current Assets
Maintenance Materials 1,273,329 1,270,637
Assets held for Sale 15 250,255,500 250,255,500
Trade and Other Receivables 16 97,076,382 128,174,991
Deposits, Prepayments and Advances 17 23,723,844 30,677,605
Short Term Investments in Securities 18 6,142,601 44,403,955
Cash and Bank Balance 19 2,939,108 8,747,657
381,410,764 463,530,345
TOTAL ASSETS 3,256,838,198 3,515,458,821
EQUITY & LlABILlTIES
Capital and Reserves
Stated Capital 20 1,356,078,570 1,356,078,570
Revaluation Reserve 21 926,339,375 926,339,375
Retained Earnings (133,875,933) 7,516,004
Total Equity 2,148,542,012 2,289,933,949

Non Current Liabilities

Interest Bearing Borrowings 22 251,344,845 460,264,698
Rent and Security Deposits 81,000,000 84,000,000
Retirement Benefit Obligations 23 28,864,472 31,801,284
361,209,317 576,065,982
Current Liabilities
Trade and Other Payables 24 299,486,696 227,315,325
Current Portion of Interest Bearing Borrowings 423,957,498 403,778,148
Income Tax Payable 25 4,004,567 5,189,730
Rent in Advance & Security Deposits 19,638,108 13,175,687
747,086,869 649,458,890
Total Equity and Liabilities 3,256,838,198 3,515,458,821

I certify that the financial statements have been prepared in compliance with the requirements of the
companies Act No. 07 of 2007

Nalinda Hettiarachchi
Chief Financial Officer
8th February 2010
The Board of Directors is responsible for the preparation and presentation of these financial statements.
Singed for and on behalf of the Board

Sanka R Wijesinghe M L P Jayatilaka

Deputy Chairman Director / General Manager
8th February 2010 8th February 2010
N.B. The Accounting policies and Notes from pages 19 to 35 form an integral part of these Financial Statements.

S E Y L A N D E V E L O P M E N T S P L C . A N N U A L R E P O R T 2 0 0 9
16
Cash Flow Statement
FOR THE YEAR
(Restated)
2009 2008
Rs. Rs.
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit/(Loss) Before Taxation (140,729,348) (385,405,729)
ADJUSTMENTS FOR
Gratuity (2,936,812) 6,051,883
Depreciation 29,914,809 30,475,661
Fair value of Investment properties (115,149,393) 29,329,592
Allowance for impairment in Investments in Property Development
Projects & Fall in Value of Shares 12,180,000 256,063,333
Assets held for sale - (46,066,722)
Interest Income (2,997,494) (5,732,769)
Profit on Sale of Property, Plant and Equipment (8,278,935) -
Interest Expenses 192,002,405 98,824,911
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES (35,994,768) (16,459,840)
(Increase) / Decrease in Maintenance Stock (2,692) 2,016
(Increase) / Decrease in Trade and other Receivables 253,961,190 49,517,854
(Increase) / Decrease in Deposits, Prepayments and Advances 6,953,761 16,881,882
Increase/ (Decrease) in Trade Payable (99,197,087) 118,143,976
Increase/ ( Decrease ) in Rent in Advance & Security Deposits 3,462,421 (5,637,306)
CASH GENERATED FROM OPERATION 129,182,825 162,448,582
Tax Paid - (13,516,571)
ESC (338,852) (380,108)
Interest Paid (192,098,106) (97,218,449)
Gratuity Paid - (371,680)
NET CASH FROM (USED IN) FROM OPERATING ACTIVITIES (63,254,133) 50,961,774
CASH FLOWS FROM INVESTING ACTIVITIES
Investments in Projects 225,000 83,720,074
Short term lnvestment 38,261,354 (7,503,700)
Purchase of Property, Plant & Equipment (75,350) (263,103)
Investment in Investment Securities (100,000) (28,896,200)
Investment in Long-term projects - (176,649,231)
lnterest Received 2,949,274 5,732,769
Sale Proceeds on Property, Plant & Equipment 33,461,650 1,019,761
NET CASH (USED IN) FROM INVESTING ACTIVITIES 74,721,928 (122,839,630)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend Paid - (29,276,875)
Repayment of Loans & Finance Leases (54,494,203) (147,706,577)
Loan Obtained - 280,117,228
NET CASH (USED IN) FROM FINANCING ACTIVITIES (54,494,203) 103,133,776
Net Increase/ (Decrease) in Cash and Cash Equivalents (43,026,408) 31,255,920
Cash & Cash Equivalents at beginning of the year (24,711,035) (55,966,955)
Cash & Cash Equivalents at end of the year (67,737,443) (24,711,035)
NOTES TO THE CASH FLOW STATEMENT
CASH & CASH EQUIVALENTS AT THE END OF THE YEAR
Cash and Cash Equivalent 2,939,108 8,747,657
Bank Overdraft (70,676,551) (33,458,692)
(67,737,443) (24,711,035)

N. B. The Accounting Policies and Notes from Pages 19 to 35 form an integral part of these Financial
Statements.

S E Y L A N D E V E L O P M E N T S P L C . A N N U A L R E P O R T 2 0 0 9
17
 S E Y L A N
Stated Capital
Restated
Description Share Share Capital Revaluation Retained Total
Capital Premium Redemption Reserve Profit Equity
Reserve Fund
Rs. Rs. Rs. Rs. Rs. Rs.
S tatement of Changes in Equity

D E V E L O P M E N T S
Balance as at January 01,2008 739,824,300 90,760,620 525,493,650 926,339,375 436,974,570 2,719,392,515

Net Loss for the year - - - - (392,467,351) (392,467,351)

P L C .
Dividend Paid - 2007 - - - - (36,991,215) (36,991,215)

18
Balance as at 31st December 2008 739,824,300 90,760,620 525,493,650 926,339,375 7,516,004 2,289,933,949

A
N
Net Loss for the year - - - - (141,391,937) (141,391,937)

N
Balance as at 31st December 2009 739,824,300 90,760,620 525,493,650 926,339,375 (133,875,933) 2,148,542,012

U
A
L
Share Premium account is generally used to write off share issue expenses. There are restrictions on distribution of the balance to share holders.

R
E
Share Redemption Reserve was created at the time of redeeming the preference shares of the company which is also reclassified as Stated Capital.

P
The net loss for the year ended 31st December 2008 has been restated as a result of the correction of a prior year error amounting to Rs. 33,693,214

O
with regard to the valuation of the investment in the housing development project at Moratuwa as at 31st December 2008.

R
T
N.B. The Accounting Policies and Notes from Pages 19 to 35 form an integral part of these Financial Statements.

2
0
0
9
Notes to the Accounts
1 General
1.1.1 Corporate Information
Seylan Developments PLC (formerly
known as "Ceylinco Seylan Development
PLC and hereinafer also referred as "the
Company) is a Public Quoted Company
incorporated in 1992 and domiciled in
Sri Lanka. The Registered office of the
company is situated at No 97, Hyde Park
Corner, Colombo - 02 and the principal
place of business is carried out at
Level 15, Seylan Towers, No 90, Galle
Road, Colombo - 03.
1.1.2 Principal Activities and Nature of
Operations
The principal activities of the company
were development of property located at
No. 90, Galle Road, Colombo 03 &
administration and maintenance of the
same & activities relating to property
developments.
1.1.3 Parent Enterprise
The company’s parent undertaking is
Seylan Bank PLC.
1.1.4 Date of Authorisation for Issue
The Financial Statements of the Company
for the year ended 31 December 2009
were authorised for issue by the Directors
on 8th February 2010.
1.2 Critical Judgements and Key Sources of
Estimation of Uncertainty
In the selection and application of the
accounting policies, which are described
in note 2, the director are required to
make judgments, assumptions and use
assumptions in measuring items reported
in the financial statements. These
estimates are based on management's
knowledge of current facts and
circumstances, and assumption based on
such knowledge and expectations of
future events. Actual results may always
differ from such estimates.
The estimates and assumptions are
reviewed on an ongoing basis. Revisions
to accounting estimates are recognised
in the period in which the estimate is
revised or in the period of the revision
and future periods, only if the revision
affects both current and future periods.
S E Y L A N D E V E L O P M E N T S P L C .
19
1.3 Preparation of Financial Statements
1.3.1. Statement of Compliance
The Balance Sheet, Income Statement,
Changes in Equity and Cash Flows,
together with Accounting Policies and
Notes (the "financial statements") have
been prepared in accordance with Sri
Lanka Accounting Standards.
1.3.2. Basis of Preparation
These financial statements have been
prepared on historical cost basis except
for the revaluation of certain properties
and financial investments at fair values.
2. Significant Accounting Policies
2.1 Property, Plant and Equipment
Property, Plant & Equipment are recorded
at cost of purchases or valuation together
with any incidental expenses thereon. The
Assets are stated at cost or valuation less
accumulated depreciation which is
provided for on the basis specified below.
The Property at, No 90, Galle Road,
Colombo 03, which includes the Leasehold
Land, Buildings and Equipment, and
comprises of two towers namely ‘East and
West’. The East Tower were revalued on
open market effective value basis. The
surplus arising on the revaluation was
transferred to capital reserve account.
The value pertaining to the East tower is
apportioned on a square foot area basis
and is stated at valuation less accumulated
depreciation under Property, Plant &
Equipment.
Depreciation
Freehold Land, Antiques & Ornamental
Paintings are not depreciated. Leasehold
Land and Buildings are depreciated over
the remaining unexpired lease period. The
depreciation of other assets is provided on
the straight line method at varying rates
per annum based on their useful lives as
follows:-
A N N U A L R E P O R T 2 0 0 9
Notes to the Accounts (Contd.)
Depreciation Useful Life over the period of the Lease.
Rate (Years)
Where an operating lease is terminated
Lease hold Land 1.23% 81 before the lease period has expired, any
Buildings 1.23% 81 payment relevant to be made to the lessor
Furniture & Fittings 10% 10 by way of penalty is recognized as an
Equipment 20% 05 expenses in the period in which
lnterior Decor 50% 02 termination take place.
Motor Cars 20% 05
The cost of improvement to or on leased
Motorcycles 25% 04
property is capitalized and depreciated
Tools 33.33% 03
over the unexpired period of the lease or
Cutlery & Crockery 50% 02
the estimated useful lives of improvement,
Equipment -West Tower 50% 02
which ever is shorter.
Furniture - West Tower 33.33% 03
lnterior - West Tower 33.33% 03 2.5 Investment Property
Maintenance Management
In accordance with SLAS 40 - Investment
Software 20% 05
Property (2005), the book value of the
Accounting Software 20% 05
properties held to earn rental income, and
General Plant & Equipment 5% 20
properties held for capital appreciation
have been classified as investment
Depreciation of an asset begins when it is properties.
available for use whereas depreciation of
an asset ceases at the earlier of the date Investment properties are initially
that the asset is classified as held for sale recognized at cost. Subsequent to initial
and the date that the asset is derecognized. recognition, the investment properties are
stated at fair values, which reflect market
2.2 Impairment of Assets conditions at the balance sheet date. An
The carrying values of property, plant & independent professional valuation of the
equipment, are reviewed for impairment company’s properties is made once in
annually or when events or changes in every three years.
circumstances indicate the carrying value
may not be recoverable. If any such Gains or losses arising from the changes
indications exist, and where the carrying in fair value are included in the income
values exceed the estimated recoverable statement in the year in which they arise.
amounts the assets are written down to In accordance with the transitional
their recoverable amount. Impairment provisions of SLAS 40, the effect of
losses are recognized in the Income adopting this standard is shown as an
statements unless it reverses a previous adjustment to the opening balance of
revaluation surplus for the same assets. retained earnings of the current financial
year and the comparative information has
2.3 Leased Assets (Finance Lease) not been restated.
Assets acquired under finance leases,
which transfer all risks and rewards Investment Properties are derecognized
incidental to that of ownership are when disposed, or permanently withdrawn
capitalized at the cash price of the assets from use because no future economic
concerned. The corresponding liability benefits are expected. Any gains or losses
relating to the principal amount is shown on retirement or disposal are recognized
under creditors. The depreciation for such in the Income Statement in the year of
assets too, is charged over the effective retirement or disposal. Transfers are made
lives of the assets. to and from investment property only when
there is a change in accordance with the
2.4 Leased Assets (Operating Lease) criteria listed in SLAS 40.
Lease of assets under which all the rights 2.6 Investments in Property Development
and benefits of ownership are effectively Projects
retained by the lessor are classified as
operating leases. The Lease hold rights Investment in property develoment projects
under operating leases are charged to the are measured cost less any accumulated
Income statement on a straight line basis impairment losses, if any.

S E Y L A N D E V E L O P M E N T S P L C . A N N U A L R E P O R T 2 0 0 9
20
Notes to the Accounts (Contd.)
2.7 Long term Investments in securities.
Investments in securities are assets
acquired and held for yield or capital
growth in the medium / long term. Such
securities are recorded at cost. Changes
in market values of these securities are
not taken into account, unless they are
considered to be of a permanent nature.
Income from these investments is
recognized only to the extent of dividend
received.
2.8 Maintenance Materials
Maintenance materials are valued at
actual cost on first - in - first - out basis.
2.9 Trade & Other Receivables
Receivables are Stated at their estimated
realisable amounts. Provision for bad &
doubtful debts has been made where
necessary.
2.10 Cash & Cash Equivalents
For the purpose of Cash flow statement,
cash and cash equivalents consist of cash
in hand & balance at banks net of bank
overdrafts.
2.11 Foreign Currency Translation
All foreign exchange transactions are
converted to Sri Lankan Rupees, which
is the reporting currency, at the rates of
exchange prevailing at the time the
transactions are effected.
2.12 Income Taxes
Income tax expense represents the sum
of taxes currently payable and deferred.
Current Taxes
Pursuant to the agreement dated 30th
March 1993 entered in to with the Board
of Investment under section 17 of the
Board of Investment Law, the company
is exempt from income tax for a period
of 7 years from the year of assessment
2003/2004.
However, other income is liable for
Income Tax in accordance with the
provision of the Inland Revenue Act No
10 of 2006 and amendment there to.
S E Y L A N D E V E L O P M E N T S P L C .
21
2.13 Retirement Benefit Obligations
a) Defined benefit plan - Gratuity Adoption
of SLAS 16 (Revised)
Sri Lanka Accounting Standard 16
(Revised 2006) Employee Benefits,
applies to Financial Statements covering
annual periods beginning on or after 1st
July 2007 was adopted by the company
with effect from 1st January 2008.
The company measures the present value
of the promised retirement benefits of
gratuity which is a defined benefit plan
with the advice of an actuary every year
using the projected Unit Credit Method.
The Key assumptions used by the actuary
included the following :
Discount Rate 11%
Rate of Salary Increase 12%
Retirement Age 60
The company will continue as a going
concern.
The Company is liable to pay gratuity in
terms of the payment of Gratuity Act No.
12 of 1983, according to which a liability
to pay gratuity arises only on completion
of 5 years of continued service.
(b) Defined Contribution Plans - EPF & ETF
Employees are eligible for Employees’
Provident Fund Contributions and
Employees Trust Fund contributions in
line with the respective statutes and
regulations. The Company contributes
12% and 3% of gross emoluments of
employees to Employees’ Provident Fund
and Employees’ Trust Fund respectively.
2.14 Provisions
Provisions are recognised when the
Company has a present obligation (legal
or constructive) as a result of a past event,
it is probable that the Company will be
required to settle the obligation, and a
reliable estimate can be made of the
amount of the obligation.
The amount recognised as a provision is
the best estimate of the consideration
required to settle the present obligation
at the balance sheet date, taking into
account the risks and uncertainties
surrounding the obligation. Where a
provision is measured using the cash
A N N U A L R E P O R T 2 0 0 9
Notes to the Accounts (Contd.)
flows estimated to settle the present
obligation, its carrying amount is the
present value of those cash flows.
When some or all of the economic
benefits required to settle a provision are
expected to be recovered from a third
party, the receivable is recognised as an
asset if it is virtually certain that
reimbursement will be received and the
amount of the receivable can be
measured reliably.
2.15 Events after the Balance Sheet Date
All Materials events occurring after the
Balance Sheet date have been considered
and where necessary, appropriate
adjustments or disclosures has been
made.
2.16 Comparative information
The accounting policies which have been
consistently applied by the company,
unless otherwise stated and are consistent
with those used in the previous year.
Where necessary comparative figures
have been re-arranged to conform to the
current year’s presentation.
2.17 Revenue Recognition
Revenue is recognized to the extent that
it is probable that the economic benefits
will flow to the company and the revenue
and associated cost incurred or to be
incurred can be reliably measured.
Revenue is measured at the fair value of
the consideration received or receivable,
net of trade discount and sales taxes. The
following specific criteria are used for the
purpose of recognition of revenue.
Rental and Service Charges
Rental and service charges are accounted
for on an accrual basis.
Interest Income
Interest income is recognized on an
accrual basis.
Dividend Income & Profit on disposal of
Property, Plant & Equipment.
Recognized on cash basis.
Project Income
Revenue has been recognized on
Investment of project income, on the
percentage completion of the project or
S E Y L A N D E V E L O P M E N T S P L C .
22
cash paid by the buyer whichever is
lower.
2.18 Gains and Losses
Net gains and losses of a revenue nature
arising from the disposal of property, plant
and equipment and other non-current
assets, including investments, are
accounted for in the income statement,
after deducting from the proceeds on
disposal, the carrying amount of such
assets and the related selling expenses.
Gains and losses, arising from activities
incidental to the main revenue generating
activities or those arising from a group of
similar transactions which are not
material, are aggregated, reported and
presented on a net basis.
Any losses arising from guaranteed rentals
are accounted for in the year of incurring
the same. A provision is recognised if the
best estiamate indicates a loss.
2.19 Expenditure Recognition
Expenses are recognised in the income
statement on the basis of a direct
association between the cost incurred and
the earning of specific items of income.
All expenditure incurred in running the
business and in maintaining property,
plant and equipment in a state of
efficiency has been charged to the income
statement.
For the purpose of presentation of the
Income statement, the "function of
expenses" method has been adopted, on
the basis that it presents fairly the elements
of the Company performance.
2.20 Borrowing Cost
Borrowing costs are recognized as an
expense in the period in which they are
incurred unless they are incurred for the
purpose of a project or directly attributable
to the acquisition, construction or
production of an asset that takes a
substantial period to get ready for
intended use. Such borrowing cost are
capitalized.
A N N U A L R E P O R T 2 0 0 9
Notes to the Accounts (Contd.)
FOR THE YEAR
2009 2008
NOTE - 3
Rs. Rs.
OTHER INCOME

Profit / (Loss) from Property Development Projects (3,948,981) 27,740,293

Maintenance Income 80,928 78,800
Management Fees 4,000,000 3,500,000
Profit on Disposal of Property, Plant & Equipment 8,278,935 -
Interest Income 2,997,494 5,732,769
Dividend Income 806 1,010
Miscellaneous Income 95,486 117,766
Work Order Income 726,797 718,041
Non Refundable tender deposits 15,600 -
Reversal of over provision in retirement benefit obligation 2,936,812 -

15,183,877 37,888,679

NOTE - 4
PROFIT/(LOSS) FROM OPERATIONS IS STATED AFTER
CHARGING/(CREDITING) THE FOLLOWING

Directors' emoluments 12,380,256 29,566,183

Personnel Cost 31,930,408 43,866,667
Depreciation 29,914,809 30,475,661
Audit Fees - External 472,500 404,030
Audit Fees - Internal 204,000 -
Legal Fees & Secretarial Fees 1,478,083 1,088,649
Donation - 243,000
Allowance for doubtful debtors 48,881,563 27,021,310
Written off of Investments in fixed deposits (Note - 18) 31,215,662 -

NOTE 5
CHANGES IN FAIR VALUE OF INVESTMENT PROPERTIES
(Restated)
Investment Property - West Tower 115,149,393 (75,050,480)
Investment Property - Union Place (Note 15) - 45,720,888
115,149,393 (29,329,592)
NOTE - 6
ALLOWANCE FOR IMPAIRMENT IN INVESTMENTS IN
PROPERTY DEVELOPMENT PROJECTS AND IN SHARES

Nawala Project - (212,765,355)

Ja-Ela Shopping Complex - (26,469,178)
Diminution in value of unquoted investment (12,180,000) (16,828,800)
(12,180,000) (256,063,333)

S E Y L A N D E V E L O P M E N T S P L C . A N N U A L R E P O R T 2 0 0 9
23
Notes to the Accounts (Contd.)
2009 2008
NOTE - 7 Rs. Rs.
FINANCE COST
Interest on Overdraft 12,009,591 11,329,373
Interest on Bank Loan 176,033,789 84,938,363
Bank Charges 207,575 655,343
Debits Tax 299,694 650,279
Overdue Interest 2,343,071 292,080
Interest on Leasing 1,615,954 2,265,094
Surcharge on Interest - 82,196
Other Financial Charges - 3,190,399
Trustee Fees 803,888 700,313
193,313,562 104,103,440
NOTE - 8
INCOME TAX
NOTE - 8.1
Charges to Taxation is as follows
Taxation based on Profit for the Year (Note 8.2) 662,589 7,061,622
(Over)/ Under provision of taxes previous Years - -
662,589 7,061,622
Effective Tax Rate -1.25% -2.11%

NOTE 8.2
Taxation based on profit for the year
(Loss) as per the Income Statement (140,729,348) (385,405,729)
Add: Disallowable Expenses 87,526,773 49,980,792
(53,202,575) (335,424,937)
Less : Allowable Expenses (429,029,067) (76,512,419)
: Other Income (2,869,437) (30,732,769)
: Exempt or allowable lncome - (1,010)
Exempted Taxable Profit/(Loss) (485,101,079) (442,671,135)

Other Income 2,869,437 30,732,769

Total Statutory / Assessable Income 2,869,437 30,732,769
Losses set off (1,004,303) (10,756,469)
Taxable income 1,865,134 19,976,300

Tax Liability
Taxation @ 35% 652,797 6,991,705
Social Responsibility Levy 9,792 69,917
662,589 7,061,622

S E Y L A N D E V E L O P M E N T S P L C . A N N U A L R E P O R T 2 0 0 9
24
Notes to the Accounts (Contd.)
NOTE - 9
EARNINGS/(LOSS) PER SHARE
NOTE - 9.1
Basic earnings/(Loss) per share is calculated by dividing the net profit/(Loss) for the year attributable
to ordinary shareholders by the weighted average number of ordinary shares in issue as at 31st
December 2009.

NOTE - 9.2 2009 2008

Amount used as Numerator Rs. Rs.
Net Profit/(Loss) attributable to ordinary Shareholders (141,391,937) (392,467,351)
Number of Ordinary shares used on the Denominator
No of Shares in issue 73,982,430 73,982,430

Basic Earnings/(Loss) Per Share (1.91) (5.30)

NOTE - 10
NET ASSET PER SHARE

Net Assets 2,148,542,012 2,289,933,949

No of Shares 73,982,430 73,982,430

Net Assets per share 29.04 30.95

NOTE - 11 2009 2008

Rs. Rs.
PROPERTY, PLANT & EQUIPMENT
Free-hold Assets (Note - 11.1) 762,407,563 780,205,642
Lease hold Assets (Note -11.2) 609,632,725 621,897,293
1,372,040,288 1,402,102,935

S E Y L A N D E V E L O P M E N T S P L C . A N N U A L R E P O R T 2 0 0 9
25
Notes to the Accounts (Contd.)
Cost - Rs.
Free hold property, plant Balance at the
and equipment Beginning of the Addition during Transfers during Balance at the
Year the Year the Year End of the Year
Rs. Rs. Rs. Rs.
Building & Fixtures 749,420,002 - - 749,420,002
General Plant & Equipment 81,222,031 - - 81,222,031
Furniture & Fittings 9,210,578 53,200 - 9,263,778
Interior & Furniture - West Tower 396,792 - - 396,792
Equipments 9,076,052 22,150 - 9,098,202
Equipment-West Tower 2,710,276 - - 2,710,276
Water Purification System 347,631 - - 347,631
Maintenance Management Software 132,718 - - 132,718
Interior - Office 555,229 - - 555,229
Motor Vehicles - Freehold 4,953,719 - (4,953,719) -
Tools & Electrical Equipment 454,937 - - 454,937
Accounting Software 629,169 - - 629,169
Total Cost 859,109,134 75,350 (4,953,719) 854,230,765

Accumulated Depreciation - Rs.

Balance at the
Beginning of the Depreciation for Depreciation on Balance at the
Year the Year Disposal End of the Year
Accumualted Depreciation Rs. Rs. Rs. Rs.
Buildings & Fixtures 37,033,639 9,215,577 - 46,249,216
General Plant & Equipment 22,096,002 5,324,546 - 27,420,548
Furniture & Fittings 5,471,617 877,693 - 6,349,310
Interior & Furniture - West Tower 131,568 101,062 - 232,630
Equipments 7,249,567 620,165 - 7,869,732
Equipment - West Tower 1,151,275 433,394 - 1,584,669
Water Purification System 347,631 - - 347,631
Maintenance Management Software 132,718 - - 132,718
Interior - Office 555,229 - - 555,229
Motor Vehicles - Freehold 3,654,456 1,299,263 (4,953,719) -
Tools & Electrical Equipment 450,623 1,729 - 452,352
Accounting Software 629,167 - - 629,167
Total Depreciation 78,903,492 17,873,429 (4,953,719) 91,823,202
Written Down Value 780,205,642 762,407,563

NOTE NO. 11.2 Cost - Rs.

Lease hold assets Balance at the
Beginning of the Addition during Transfer/Disposal Balance at the
Year the Year during the Year End of the Year
Rs. Rs. Rs. Rs.
Land 640,549,318 - - 640,549,318
Equipments 4,263,640 - - 4,263,640
Motor Vehicles 17,617,736 - (2,045,243) 15,572,493
662,430,694 - (2,045,243) 660,385,451

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Notes to the Accounts (Contd.)
Accumulated Depreciation - Rs.
Balance at the
Beginning of the Depreciation for Depreciation on Balance at the
Year the Year Disposal End of the Year
Rs. Rs. Rs. Rs.
Land 31,535,052 7,878,756 - 39,413,,808
Equipments 852,728 852,728 - 1,705,456
Motor Vehicles 8,145,621 3,309,896 (1,822,055) 9,633,462
40,533,401 12,041,380 (1,822,055) 50,752,726
Written Down Value 621,897,293 609,632,725

NOTE - 12
INVESTMENT PROPERTIES 2009 2008
Rs. Rs.
Balance as at the beginning of the year 1,151,493,932 1,226,544,412
Change in fair value during the year 115,149,393 (75,050,480)
1,266,643,325 1,151,493,932
Note 12.1
Seylan Developments PLC - West Tower
No. 90, Galle Road, Colombo 03. 1,226,643,325 1,151,493,932

Seylan Developments PLC - West Tower

In order to adopt fair value model, lease hold land and building (which comprise of East & West
towers) were revalued at Rs. 4,341,216,987 by M/S A Y Danial & Sons Incorportated Valuers using
an average of the contractor basis and capitalization basis on 31-12-2009. However, the Borad
of directors has decided to take only 10% increase over the fair value of property as at 31st
December 2009. Accordingly, the value of the investment property is Rs. 1,266,643,325.
The Investment properties includes the leasehold land & buildings, furniture & fittings and
equipments.

NOTE - 13
INVESTMENT IN PROPERTY DEVELOPMENT PROJECTS 2009 2008
Rs. Rs.
Ja - ela Commercial Complex 70,351,000 70,351,000
Nawala Project - 211,350,000
Moratuwa Housing Project 139,148,998 177,306,786
209,499,998 459,007,786

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Notes to the Accounts (Contd.)
NOTE - 14 2009 2008
INVESTMENT SECURITIES No. of Market
Shares Value Cost Cost
Rs. Rs. Rs.
Quoted
Nations Lanka Finance PLC 200,000 2,900,000 2,000,000 2,000,000
CT Land Developers PLC 100 2,175 666 666
City Housing and Real Estate PLC 250 5,313 2,421 2,421
Colombo Fort Land & Bldg. Co. PLC 100 3,125 917 917
Overseas Realty (Ceylon) PLC 100 1,550 316 316
Kelsey Developments PLC 100 1,100 817 817
Property Development PLC 100 2,175 1,728 1,728
Colombo Land & Development Co PLC 1,250 8,125 241 241
East West Co, PLC 200 1,650 516 516
Equity One PLC 100 2,150 1,348 1,348
O’ Nally Holdings PLC 100 3,550 867 867
York Arcade Holdings PLC 100 1,175 417 417
Blue Diamonds Jewellery World Wide PLC 170,000 340,000 382,500 382,500
3,272,088 2,392,754 2,392,754

Unquoted
Ceylinco Savings Bank Ltd. 25,000 250,000 250,000
Ceylinco Venture Capital Investment Ltd. 95,000 950,000 950,000
Ceylinco Sports Complex (Pvt) Ltd. 220,000 2,200,000 2,200,000
Asian Finance Co. Ltd. 75,000 750,000 750,000
Ceycom Global Communication Ltd. 40,500 405,000 405,000
Ceylinco International Property Developers (Pvt) Ltd 50,000 500,000 500,000
Ceyenergy Electronic Company (Pvt) Ltd. 15,000 150,000 150,000
Ceylinco Swiftcare (Pvt) Ltd. 75,000 750,000 750,000
Independent Financial News & Views (Pvt) Ltd. 4,900 49,000 49,000
Ceylinco International Realty (Pvt) Ltd. 200,000 2,000,000 2,000,000
E-Ceylinco.Com (Pvt) Ltd. 60,000 600,000 600,000
International Consultancy & Corporate Services (Pvt) Ltd 5,000 50,000 50,000
Ceylinco PLC Technology (Pvt) Ltd. 177,500 1,775,000 1,775,000
The Sitar (Pvt) Ltd. 60,000 600,000 600,000
Ceylinco Investment and Reality Limited 4,000,000 40,000,000 40,000,000
Ceylinco CISCO Cash Management and
Transit Company (Pvt) Ltd. 10,000 100,000 100,000
Seraka Investment Limited 510,000 5,100,000 5,100,000
Associated Property Developers PLC 100 1,069 1,069
Ceylinco Cisco Ranaviru Services (Pvt) Ltd. 10,000 100,000 -
56,330,069 56,230,069
Total 58,722,823 58,622,823
Allowance for Diminution in Value (31,479,000) (19,299,000)
27,243,823 39,323,823
NOTE - 15
ASSETS HELD FOR SALE
The Company has decided to sell the Property at No. 257, Union Place, Colombo 02. during the latter part of
2008 and is still in the process of carrying out negotations with interested parties in order to get the best price.

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Notes to the Accounts (Contd.)
2009 2008
Rs. Rs.
NOTE - 16
TRADE & OTHER RECEIVABLE
Trade Receivables from Related Companies 67,692,973 64,709,118
Trade Receivables from Others 4,806,097 3,878,669
Other Receivables from Related Companies 47,744,053 36,510,437
Other Receivables from Others 40,723,432 36,654,779
VAT Receivable 12,012,701 13,443,298
172,979,256 155,196,301
Allowance for doubtful receivables (75,902,874) (27,021,310)
97,076,382 128,174,991

Trade & other receivable includes Rs. 12,184,219 in respect of arbitration expenses which the Company
excepts to reimburse from M / s Intertec Contracting A / s through legal procedures.
The Arbitrator in Sri Lanka, awarded the Arbitration in favour of the Company on the 04th of March 2005
and M/ s Intertec Contracting A / S, according to the awards is due to pay a sum of Rs. 42.50 Mn together
with interest at the rate of 5.16% p.a. to the company.
However M / s Intertec Contracting A / s has declared bankruptcy and the Company is liaising with the Estate
Administrator & Trustee and is awaiting finalizing of bankruptcy Court Case No. SKS 45-20450/ 2003 in
Denmark Ref :- International Contractors Holdings A/ s (formerly Intertec Contracting A/ s) in bankruptcy,
Central Business Register (CVR) No. : 63 87 00 13 of the Danish Bankruptcy Act (Konkursloven) to recover
the Company's share.
NOTE - 17
DEPOSITS, PREPAYMENTS AND ADVANCES
Deposits 2,766,022 2,766,022
Prepayments 2,248,368 8,052,912
Advances 18,709,454 19,858,671
23,723,844 30,677,605
NOTE -18
SHORT TERM INVESTMENTS IN SECURITIES
Fixed Deposits 5,942,601 39,212,527
Repurchase agreements - 4,991,428
Debentures 200,000 200,000
6,142,601 44,403,955

Fixed deposits amounting to Rs. 31,215,662 at Peopels Bank, International Branch, had been placed as a
security against the overdraft facility obtained by Ceylinco Packaging Company Ltd. Since Ceylinco
Packaging Company Ltd has defaulted the repayment of the overdraft, the bank has transferred the title of
the deposit to their name.
NOTE -19
CASH AND BANK BALANCE
Cash in hand 43,500 34,001
Cash at Bank 2,895,608 8,713,656
2,939,108 8,747,657
NOTE -20
STATED CAPITAL
73,982,430 Ordinary Shares 739,824,300 739,824,300
Share Premium 90,760,620 90,760,620
Capital Redemption Reserve Fund 525,493,650 525,493,650
1,356,078,570 1,356,078,570
In accordance with Section 58 of the Companies Act No 7 of 2007, Share Capital, Share Premium and
Capital Redemption Reserve Fund have been reclassified as Stated Capital.

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Notes to the Accounts (Contd.)
2009 2008
NOTE -21 Rs. Rs.
REVALUATION RESERVE
On revaluation of Land at No. 90 Galle Road, Colombo 3. 648,505,997 648,505,997
On revaluation of Building at No. 90 Galle Road, Colombo 3. 28,710,830 28,710,830
On revaluation of General Plant & Equipment 249,122,548 249,122,548
926,339,375 926,339,375
NOTE - 22
INTEREST BEARING BORROWINGS
Bank Loan 466,340,770 644,842,651
Lease Trusts - Detusche Bank Note 22.1 69,140,885 112,309,881
Bank Overdraft 70,676,551 33,458,692
Lease Creditors Note 22.2 7,344,137 11,631,622
Ceylinco Investment & Realty Ltd 61,800,000 61,800,000
675,302,343 864,042,846
Amounts Payable Within one Year Note 22.3 (423,957,498) (403,778,148)
Amounts Payable after one Year 251,344,845 460,264,698

NOTE - 22.1
LEASE TRUSTS - DEUTSCHE BANK
Lease Trust - 01 24,197,587 58,364,243
Lease Trust - 02 44,943,298 53,945,638
69,140,885 112,309,881

The company has borrowed a sum of Rs 150,904,284.85 and Rs 65,146,847.85 from Detusche
Bank who is acting as the trustee of Seylan Developments PLC. Lease Trust 1 and 2 made between
Seylan Developments PLC and Detusche Bank.

NOTE - 22.2
LEASE CREDITORS
Balance at the beginning of the year 14,689,682 24,436,892
Additions during the Year - -
Adjustment (Note 22.2.1) - (3,176,255)
Amount paid during the Year (5,946,192) (6,570,955)
8,743,490 14,689,682
Less: Interest in Suspense (1,399,353) (3,058,060)
7,344,137 11,631,622
Amounts Payable within one year (3,905,504) (4,156,543)
Amounts Payable after one year 3,438,633 7,475,079

NOTE - 22.2.1
Calculation error in the previous years in respect of lease creditors have been corrected and
adjusted in the previous year amounting to Rs. 3,176,255

NOTE - 22.3
AMOUNTS PAYBLE WITHIN ONE YEAR
Bank Loan 315,236,799 298,362,913
Lease Trusts - Detusche Bank 34,138,644 67,800,000
Lease Creditors 3,905,504 4,156,543
Bank Overdraft 70,676,551 33,458,692
423,957,498 403,778,148

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Notes to the Accounts (Contd.)
NOTE - 22.4
ASSETS PLEDGED
The following securities are given against the bank facilities.

Name of the Bank Nature of the Loan/Facility Balance

Liabilities Granted outstanding Security Pledged

HNB Union Place Property 100,000,000 40,606,710 Registered Primary Floating Mortgage
Bond Rs. 260 Mn over the Level 5 - 9
of the West Tower of Seylan Towers.

People's Bank - Moratuwa Housing 160,000,000 160,000,000 The Properties marked units 13,14,16,
Nugegoda Project 17, 34, & 35 of West Tower of Seylan
Towers. Bearing assessement Nos. 90 2/1,
90 2/2, 90 3/1, 90 3/2, 90 9/1, 90 9/2 of
condominium Plan No. 59/2004 dated
4/12/2004.

HDFC Nugawaralanda Project 15,000,000 7,406,010 Land marked Lot 1 depicted in plan
No. 2816, called Nugawaralanda
situated at Dedigamuwa with in Kaduwela.

SMB To Meet the working capital 20,000,000 19,584,000 Primary mortgage over lot Nos 10,11,12,
requirements 16 and 17 of Moratuwa property.

Deutsche Bank Union Place Property 216,051,132 69,140,886 Raised Rs. 216 Mn securitizing the
building rent receivable.

Seylan Bank PLC To meet the working 150,000,000 149,000,000 The Properties Maked units 27,30 & 33 of
capital requirements. West Tower of Seylan Towers. As marked
Condominium Plan No. 59/2004 dated
4/12/2004.

Seylan Bank PLC Overdraft 20,000,000 36,277,687 Primary mortgage for 17.6 Mn over
unit 3 & 4 at Seylan Towers. Additional
Term Loan 15,000,000 13,406,339 mortgage for 9.4 Mn over Unit 3 &
Unit 4 above. Primary mortgage for
Guarantee 10,245,000 10,245,000 21 Mn over unit No. 8 at Seylan Towers.

Ceylinco Grameen To Meet the working 70,000,000 70,000,000 Promissory Note

capital requirements

NOTE - 22.5
CORPORATE GUARANTEES
The following corporate guarantees are given for following companies.

Company Facility Amount Balance As At 31/12/2009 Financial Institution

Ceylinco Limited 33,000,000 - Lanka Orix Factors Ltd

Ceylinco Industries (Pvt) Ltd. 29,000,000 14,915,352 People's Bank

Ceylnco Packaging Co. Ltd. 38,000,000 22,950,786 People's Bank

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Notes to the Accounts (Contd.)
2009 2008
NOTE - 23 Rs. Rs.
RETIREMENT BENEFIT OBLIGATIONS
Balance at the beginning of the year 31,801,284 26,121,081
Add: Provision for the year (2,936,812) 6,051,883
Transfer from Related Company - -
Restatement of gratuity - -
28,864,472 32,172,964
Less: Payments made during the year - (371,680)
28,864,472 31,801,284

Retirement Benifit Obligations has been identified according to the Actuarial valuation of the
Gratuiry Liabilities as at 31st December 2009 carried out on 12-01-2010.

NOTE - 24
TRADE & OTHER PAYABLE
Trade Payables to Related Parties 76,581,984 76,203,189
Trade Payable to Others 13,723,617 40,129,896
Accruals and Other Payables 209,181,095 110,982,240
299,486,696 227,315,325
NOTE - 25
INCOME TAX PAYABLE
Balance at Beginning of the year 5,189,730 13,005,176
Withholding Tax (21,211,943) (19,703,023)
Provision for the year 662,589 7,061,622
Commissioner General of Inland Revenue 19,703,043 18,211,240
Under provision - 511,394
Payment made during the year - (13,516,571)
Economic Service Charges Paid (338,852) (380,108)
4,004,567 5,189,730
NOTE - 26
COMMITMENTS & CONTINGENCIES
NOTE - 26.1
Contingent Liabilities and Contingent Assets.
NOTE - 26.1.1
Contingent liabilities
There were no significant contingent liabilities as at the balance sheet date that would require
adjustments to / or disclosure in the financial statements.

NOTE - 26.1.2
CONTINGENT ASSETS
In respect to the legal proceedings the Company has with M/s Intertec Contracting A /s, the
Arbitrator in Sri Lanka, awarded the Arbitration in favour of the Company on the 04th of March
2005 and M /s Intertec Contracting A /s, according to the award is due to pay a sum of Rs. 42.50
Mn together with interest at the rate of 5.16% p.a. to the company.
Howerver M /s Intertec Contracting A /s has declared bankruptcy and the Company is liaising with
the Estate Administrator & the Trustee and is awaiting finalizing of bankruptcy Court Case No. SKS
45-20450/ 2003 in Denmark: Ref :- International Contractors Holding A /s (formerly Intertec
Contracting A /s) in bankruptcy, Central Business Register (CVR) No : 63 87 00 13 of the Danish
Bankruptcy Act (Knokursloven) to recover the Company's share.

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Notes to the Accounts (Contd.)
NOTE - 26.2
COMMITMENTS

There were no significant commitments as at the balance sheet date that would require
adjustment to / or disclosure in the financial statements.

NOTE - 27
EVENTS AFTER THE BALANCE SHEET DATE

There have been no material events after the balnce sheet date that would require adjustments
to / or discoure in the Financial Statements except for the following.

The Company has decided to apply for a banking facility amounting to Rs. 30 Mn by offering the
property at No. 257, Union Place, Colombo 02. as the primary mortgage. This property is shown
in the balance sheet under assets held for sale.

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Notes to the Accounts (Contd.)
NOTE - 28
DIRECTORS’ INTERESTS IN CONTRACTORS & RELATED PARTY TRANSACTIONS

NOTE - 28.1
The following transactions have been entered into with related parties during the financial year.
2009 2008
Name of the Company Nature of the Nature of Transaction Amount Amount
Relationship Rs. Rs.

Seylan Bank PLC Parent Company Bank charges paid, D/Tax,O/D Int.Paid 12,150,042 17,548,352
Loan lease expenses 187,000 -
Lease Rentals for the year 83,937 534,834
Licence fee for the Occupation for the year 80,625,022 81,644,013
Work order Income 624,163 578,972
Management Fees for the year 4,000,000 3,500,000
Loan Interest 43,953,583 -
Term Loan 149,000,000 165,000,000
Rent advance 66,000,000 -
Security Deposit 15,000,000 -
OD Facility 67,168,298 29,837,608

Ceylinco Hairdressers Ltd Affiliated Company License fee for Occupation for the year 67,727 77,463

Ceylinco Hotels Ltd. Affiliated Company License fee for Occupation for the year 1,815,699 2,169,097
Work Order Income for the year 102,634 139,069

Ceylinco Insurance PLC Affiliated Company Insurance Premium paid in respect of fire,
Terrorism & Saborage and Staff medical. 1,248,788 20,929,107
Fire Insurance payable 262,180 -

Ceylinco CISCO Cash Management

& Transit Co. (Pvt) Ltd Affiliated Company Diminution in value of share 100,000 -

Ceylinco CISCO Security Affiliated Company Security charges for the year 4,594,836 5,625,410
Corporation (Pvt) Ltd Security charges payable 7,010,087 -

International Consultancy & Secretarial & registras fees for the year 852,733 805,343
Corp. Services (Pvt) Ltd. Affiliated Company Secretarial payable 811,552 -

Ceylinco Investments & Affiliated Company Lease Rentals for the year 184,200 185,727
Realty Ltd Salary cost receivable 5,627,071 5,627,071
Ja-Ela project expenses receivable 70,351,000 -
Naiwala project expeneses receivable 16,863,063 -
Diminution in value of share 16,000,000 -
Moratuwa project expenses payable 43,230,560 -
Investment in Fixed Deposits 5,942,601 10,000,000
Investment in Shares 40,000,000 40,000,000

Seylan Merchant Bank PLC. Affiliated Company Term Loan 19,584,000 19,168,000

Seylan Bank Asset Affiliated Company Invetment income for the year 718,470 1,287,504
Managment (Pvt) Ltd Licence fee for Occupation for the year 2,393,692 2,522,240
Rent advance 541,872 -
Security Deposit 180,624 -

Ceylinco Packaging (Pvt) Ltd Affiliated Company Provisions for Bad debtors 41,896,725 14,700,000

Ceylinco Seraka Investments Ltd Affiliated Company Diminution in value of shares 4,080,000 -

Ceylinco Home Nursing &

Swift Care (Pvt) Ltd. Affiliated Company Medical clinc service charges payable 100,000 -

Ceylinco Grameen Credit Affiliated Company Short Term Loan 70,000,000 70,000,000
Company Limited Interest on Loan for the year 21,000,000 11,408,218

Ceylinco Reit Ltd Affiliated Company Advance Paid 1,685,000 1,085,000

Ceylinco Limited Affiliated Company Project current account 6,867,802 -

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Notes to the Accounts (Contd.)
NOTE - 28.2
TRANSACTIONS WITH THE KEY MANAGEMENT PERSONAL OF THE COMPANY

(a) Key management personnel compensation

2009 2008
Rs. Rs.
Director's Emoluments 12,380,256 29,566,183
Director's other short term benefits 329,135 332,049

(b) Loan given to Director/General Manager

Balance as at 31st December 2,265,000 2,565,000

The above loan was given in the capacity of being the Genaral Manager as part of the
employment benefits while he also severs as a Director. Due to the directorship he holds, this
transcation does not fall in line with section 217 (1) of Companies Act No. 7 of 2007.
Accordingly, the loan is being repaid according to repayment plan.

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 Description 2009 2008 2007 2006 2005 2004
(Restated)
Total Income 154,934,926 186,770,518 209,413,432 217,968,858 170,745,893 711,251,217

S E Y L A N
Rental Income 139,751,049 148,881,839 142,445,934 141,283,563 117,962,108 140,015,274
Other Income 15,183,877 37,888,679 66,967,498 76,685,295 52,783,785 571,235,943
154,934,926 186,770,518 209,413,432 217,968,858 170,745,893 711,251,217
Operating Expenses (205,320,105) (182,679,882) (148,164,909) (124,650,360) (104,609,859) (93,652,335)
Operating Profit (50,385,179) 4,090,636 61,248,523 93,318,498 66,136,034 617,598,882
Changes In Fair Values 102,969,393 (285,392,925) 203,775,766 – – –
Finance Cost (193,313,562) (104,103,440) (26,571,681) (27,358,473) (21,382,830) (36,582,821)
Profit/ (Loss) Before Tax (140,729,348) (385,405,729) 238,452,608 65,960,025 44,753,204 581,016,061
Taxation (662,589) (7,061,622) (14,145,386) (16,757,186) (4,230,195) –
Profit/(Loss) After Tax (141,391,937) (392,467,351) 224,307,222 49,202,839 40,523,009 581,016,061

D E V E L O P M E N T S
Financial Information - Six Year Summary

Transfer To Capital Redemption Reserve Fund - – – – – (540,000,000)

Profit /(Loss) for the year (141,391,937) (392,467,351) 224,307,222 49,202,839 40,523,009 41,016,061
Balance Sheet

P L C .
Assets
Property, Plant & Equipments 1,372,040,288 1,402,102,935 1,433,335,254 1,446,381,065 1,461,744,687 1,486,641,890

36
Investment Property 1,266,643,325 1,151,493,932 1,226,544,412 1,226,957,424 1,022,768,646 1,022,791,703

A
Investments- Security & Projects 236,743,821 498,331,609 605,761,760 457,226,858 405,118,623 11,122,823
Current Assets 381,410,764 463,530,345 453,173,122 173,093,056 230,198,677 256,106,460

N
N
Total Assets 3,256,838,198 3,515,458,821 3,718,814,548 3,303,658,403 3,119,830,633 2,776,662,876

U
Current Liabilities 747,086,869 649,458,890 424,589,772 336,519,415 186,136,730 90,125,494

A
Non Current Liabilities 361,209,317 576,065,982 574,832,260 427,456,401 413,621,183 192,481,373

L
Total Liabilities 1,108,296,186 1,225,524,872 999,422,032 763,975,816 599,757,913 282,606,867
Net Assets 2,148,542,012 2,289,933,949 2,719,392,516 2,539,682,587 2,520,072,720 2,494,056,009

R
E
Capital & Reserves

P
Stated Capital 1,356,078,570 1,356,078,570 1,356,078,570 1,356,078,570 1,356,078,570 1,356,078,570

O
Revaluation Reserve 926,339,375 926,339,375 926,339,375 926,339,374 1,090,316,291 1,090,316,291

R
Retained Earning (133,875,933) 7,516,004 436,974,571 257,264,643 73,677,859 47,661,208

T
Shareholders’ Fund 2,148,542,012 2,289,933,949 2,719,392,516 2,539,682,587 2,520,072,720 2,494,056,069

2
Number of Shares 73,982,430 73,982,430 73,982,430 73,982,430 73,982,430 72,531,795

0
Earning/(Loss) per Share (1.91) (5.30) 3.03 0.67 0.55 0.57

0
Net Asset Per Share 29.04 30.95 36.76 34.33 34.06 34.39

9
Dividend Per share - – 0.50 0.40 0.40 –
Market Value Per Share Year End 9.50 4.50 9.00 8.25 8.25 5.75
Form of Proxy
I/We .......................................................................................................................................................
of............................................................................................................................................................
being a member /members of Seylan Developments PLC hereby appoint :-

Mr/Mrs/Ms....................................................................................... (NIC No. ..............................……)

of ...........................................................................................................................................................
whom failing,

Sanka Ravi Wijesinghe of Colombo 04, whom failing

Hiran Lal Gunasekara, of Gonawala whom failing
Mahendranath Lasantha Perera Jayatilaka of Nugegoda whom failing
Ramanathan Nadarajah of Colombo 07 whom failing
Somadasa Palihawadana of Kotte

as my/our proxy to represent me/us and vote and speak for me/us on my/our behalf as indicated
below at the Annual General Meeting of the Company to be held on Wednesday, 28th July 2010 at
10.30 a.m and at any adjournment thereof and at every poll which may be taken in consequence
thereof.
Please indicate your preference by placing a ✔ against the Resolution Number.

For Against
(1) To receive and consider the Report of the Board of Directors and the audited
financial statements for the year ended 31st December 2009 and to receive the
Report of the Auditors thereon.

(2) To re-elect Mr.M.L.P.Jayatilaka, the Director who retires by rotation in terms of

Article 93(a) of the Company’s Articles of Association,

(3) To re-elect Mr. R.Nadarajah who retires in terms of Articles 85 (a) being a director
appointed during the year

(4) To re-elect Mr. S.Palihawadana who retires in terms of Articles 85 (a) being a
director appointed during the year

(5) To appoint the new auditors, Messers KPMG Ford Rhodes Thornton & Company
Chartered Accountants in place of the retiring auditors L M Associates and to
authorize the Directors to determine their remuneration.

(6) To authorise the Directors to determine contributions to charities and other donations
for the year 2010

As witness my/our hand/s this ……………………. day of ……………. 2010

.............................................. .....................................
NIC Number / Reg. No. Signature

Instructions as to completion of the proxy are noted on the reverse hereof.

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 INSTRUCTIONS AS TO COMPLETION

1. Kindly perfect the Form of Proxy, after filling in legibly your full name & address, by signing in
the space provided and filling in the date of signature and the National Identity Card / Registration
Number.

2. If the Proxy is signed by an Attorney, the relative power of Attorney should also accompany the
Proxy Form for registration, if such power of Attorney has not already been registered with the
company.

3. If the shareholder is a company or corporate body, the Proxy should be executed under its
common seal in accordance with its Articles of Association or Constitution.

4. The completed Form of Proxy should be deposited with the Company Secretaries International
Consultancy & Corporate Services (Pvt) Ltd of No. 35/1, Dickman’s Road, Colombo 05, not later
than 48 hours before the meeting.

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