Annual 2010 Report

Annual Report 2010
Ministry of Constructon, Engineering Services, Housing & Common Amenites

Contents
Corporate Informaton 4
Board of Directors of the Corporaton 4
Corporate Management 5
Senior Management Team 5

Vision and Mission Statement of the Corporaton 6
Goals & Core Values 7

Chairmans Message 8
Progress Review of the Corporaton 10
Constructon Group Actvites 14
Mechanical & Electrical Group Actvites 18
Constructon Components Group Actvites 22
Consultancy Group Actvites 26

Human Resources & Administraton Division 29

Internal Audit Division 31
Report of the Auditor General 33
Financial Results 43
Constructon
Group
Mechanical &
Electrical Group
Constructon
Components
Group
Consultancy
Group
Buddhasrawaka
Bikku University
Face-lif of
Peoples Bank
Head Ofce
Building
Refurbishment of
R. Premadasa
Internatonal
Cricket
Stadium
Proposed three
Storied Building,
Lanka German
Technical College
Corporate Informaton
Name of Corporaton - State Engineering Corporaton of Sri Lanka.
Legal Status - Fully owned Enterprise of the Government of the Democratc Socialist
Republic of Sri Lanka.
Name of Ministry - Constructon, Engineering Services, Housing & Common Amenites.
Registered Ofce - 130, W.A.D. Ramanayaka Mawatha, Colombo 02
Tel: 011-2434691 Fax: 011-2421262
E-mail:chairman@secsl.lk
www.secsl.lk
Board of Directors - 2010
Mr. B.V.S.K.De Silva - Chairman (Jan-May, 2009-2010)
Prof. Ashu Marasinghe - Chairman (May-Dec, 2010)
Mr. S.A.S.Wickramarathne - Actng Vice Chairman (Jan-May)
Mr. Akila Saliya Ellawala - Vice Chairman (May-Dec)
Mr. P.L.Dilantha Mahindapala - Working Director (Jan-May)
Mr. Eng.Wasantha Ehelapitya - Working Director (May-Sep)
Mr. M.F.Mohamad Muzammil - Working Director (Sep-Dec)
Mrs. Damitha Rathnayake - Director
(Treasury Representatve)
Eng. Chandranandana Diunuge - Director
Mr. Dennis Fernando - Director
Mr K.P.Dias - Director
Eng. Wimal Jayawardana - Director
Mrs. Achala Samarasekara - Secretary to the Board (Jan-July)
Mrs. Indira Wikramanayake Alexander - Secretary to the Board (July-Dec)
Corporate Management
Mr. Tuder Wigenayake - Actng General Manager
Mrs. G.A.L.Nonis - Deputy General Manager - Constructon

Mr. Jayampathy Thennakoon - Deputy General Manager - Mech. & Electrical
Mr. A.A. Piyadasa - Deputy General Manager - Const. Component

Mr. P.A.P.A.Panawala - Deputy General Manager - Finance
Mr. G.G.P.Abeysekara - Deputy General Manager - H.R & A

Mr. M. W. J. De Silva - Deputy General Manager - Consultancy
Senior Management
Mrs. P. Karawita - Manager (Constructon)
Mr. R.A.M.S.Weerasena - Chief Internal Auditor

Mr. M. D. Pathmasiri - Chief Engineer (Designs)
Mr. C.M.S.R. Fernando - Actg. Chief Engineer (Contracts & Planning)
Mr. A.P.Thennakoon - Actng Manager (Const. components)
Mr. A.P.K. Manamperi - Actng Manager (Constructon)
Mr. L.A.L.Liynarachchi - Actng Manager (Const. components)

Mr. K.M.T.B.Jayasundara - Actng Manager (Constructon)
Mr. K.A.Shantha Kumara - Actng Manager (Constructon)
Mr. A.M.S.T.B.Alahakoon - Actng Manager (Constructon)
Mr. W.G.A.Gajasinghe - Actng Manager (Constructon)
Goals
Achieve highest levels of technical Standards and professionalism
To be a commercially focused, fnancially viable and self-sustainable government enterprise
To diversify business actvites of the corporaton
To develop leading and promote the use of domestc technology and local materials
To be the leading partner in Natonal Development Programmes
Improve the management and human resources of the Corporaton
Core Values
Clients Satsfacton
Integrity
Social Obligaton
Employee Satsfacton
Safety
Quality
ENGINEERS TO THE NATION
Vision
To be the leading Engineering Enterprise
Mission
To be a provider of innovatve and integrated engineering solutons through excellent consultancy, constructon,
manufacturing and project management services supported by research and development, delightng the client,
with the actve partcipaton of a competent and motvated workforce within a prosperous enterprise and there by
contribute to natonal development
2.2. Turnover & Proftability
The year 2010 marked a turnover of Rs 5,921 Million; the highest ever recorded for the SEC. The net proft afer
tax was Rs 86.4 Million. Two mega projects, the Ketarama internatonal cricket stadium and the Pallekale inter-
natonal cricket stadium contributed immensely to the increase the turnover by 56% compared to 2009.
2.3 Progress & Achievement
i. Constructon Group
The constructon group recorded a gross proft of Rs 96 Million during the year compared to Rs 203 Million in
2009. The Aluminium factory at Rathmalana performed poorly and recorded a loss of Rs 2 Million compared to
a proft of Rs 19 Million during the previous year.
Chairmans Review
It is with great pleasure that I present the Annual Report of the State Engineering
Corporaton of Sri Lanka for the fnancial year ended on 31st December 2010.
During the year, the key Focus of the government was the development of roads,
besides the other strategic areas such as Ports, power and Energy, Irrigaton and
Water Supply and Sanitaton. Furthermore, the government, other than recon-
structng the damaged irrigaton facilites and roads due to foods, successfully
contnued its rural development initatves such as Gama Naguma and Maga
Naguma as well as the development initatves under Uthuru Wasanthaya
whereby the capital expenditure was increased.
The constructon sector expanded signifcantly by 9.3 per cent in value added terms in 2010 compared to the lower
growth rate of 5.6 percent in 2009. Increased actvity in constructon was depicted by the growth of domestc pro-
ducton of building materials by 12.0 per cent during the year. Also the, cement availability grew by 18.1 per cent in
2010 compared to the contracton of 11.1 per cent in the previous year. The increased involvement in the private
sector was refected by the growth of private sector credit for constructon purposes by 19.3 per cent during the
year. Meanwhile, the government constructon projects related to roads, ports, power sector, irrigaton and water
resources and housing together with other small scale constructon also contributed favourably to the growth
in value added in the constructon sector. The constructon sector expanded with the acceleraton of the ongoing
road development projects such as the Colombo Katunayake and Southern Expressways, interregional natonal
highways and mega power projects initated to meet the rising demand for electricity. On the other hand, the con-
structon actvites were boosted due to Port development projects and the constructon and reconstructon work
done in newly liberates areas.
1. Business Backdrop
Having hit the record growth of 8.0% in 2010, Sri Lankan economy envisages to
boost its growth in the years to come. With this situaton at, the public invest-
ment programme of the government progressed with accelerated implementa-
ton of many major infrastructure development projects.
2.1. Status of Key Positon Platorm
A new Chairman was appointed during the year 2010 and changes were made to the Board of Directors. Many
of the vacancies that came over from the previous year for key positons were flled during 2010. The number of
employees for the year 2010 totalled 2343 among them 1659 permanent, 610 coming under contract basis and
74 as casual employees.
8 | State Engineering Corporation of Sri Lanka Annual Report 2010 | 9
iii. Constructon Components Group
The constructon components group showed a gross proft of Rs 77 Million compared to Rs 32 Million during
2009. It is a signifcant increase of 140% in gross proft, compares to the previous year.
iv. Consultancy Group
The consultancy group generated a signifcant gross proft of Rs 206 Million for the year 2010, mainly due to the
Department of Inland Revenue project.
ii. Mechanical & Electrical Group
The M & E group contnued to perform poorly, recording a loss of Rs 59 Million for the year 2010. This situaton is
expected to improve in future, in line with the restructuring programme related to the group.
3. Acknowledgements
I extend my grateful thanks to the Board of Directors for their kind co-operaton in fnalizing a multtude of
maters, General Manager, Deputy General Managers of all groups, staf members at all levels, the devoted
workforce and Trade Unions, for their commitment in achieving many of the expected results which have sta-
bilized the Corporaton to some extent during the year under review.
I also wish to take this opportunity to pay my grattude to Hon Minister of Constructon, Engineering Services,
Housing and Common Amenites for his valuable guidance and advice for SEC to steer clear of many difcultes;
his infuence to have concurrence of the Cabinet, in maters pertaining to SEC and resolving union issues in a
manner benefcial to all concerned.
I am also thankful to the Secretary to the Ministry of Constructon, Engineering Services and Common Amenites
and the Ministry staf for their assistance in maters which SEC was concerned during the year 2010.
B.K. Jagath Kumara Perera
Chairman
State Engineering Corporaton of Sri Lanka
Progress Review of the Corporaton
Turnover & Proft
During the fnancial year 2010, State Engineering Corporaton hit a record turnover (net turnover) of Rs: 5,921
million and a net proft (before tax) of Rs: 133 million. The turnover increased by 56% over the previous year.
Over the past 5 years, the corporaton has achieved a turnover growth of 221% and a net proft growth of 568%.
2006 2007 2008 2009 2010
Turnover(Net) 1,844 2,219 2,652 3,794 5,921
Proft/(Loss)From Operaton 3.12 103.17 42.7 281 123
Proft/(Loss)Before Taxaton 19.9 127.86 59.5 313 133
Comparatve Turnover & Proft Figures 2006 - 2010
Turnover & Net Operatng Proft / (Loss)
Table I- (Comparatve Turnover & Proft Figures of the Corporaton 2006-2010)
Table II - (Turnover & Net Operatng Proft/(Loss) of Constructon group)
Table III - (Turnover & Net Operatng Proft / (Loss) of Constructon Components group)
Corporaton has gained profts in its operatons. Following are the details of operatons in each secton.
Constructon Group
During the fnancial year 2010, the Constructon group has gained a (Gross) Turnover of Rs.2,751 Million an
increase of 14% compared to the last year. Its stake in the total Turnover of SEC is 46% and it has recorded a Net
Operatng Proft of Rs. 96.3Million during the year 2010.
Constructon Components Group
Constructon Components group has recorded a total turnover (Gross) of Rs.1770 million during the fnancial year
2010 compared with that of Rs.664 million in 2009. In compassion with the last year, its an increase of 167%. This
group has also recorded a net operatng proft of Rs.77 million for the year 2010, against the net operatng proft
of Rs.33million. for the fnancial year 2009.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
R
s
.
M
i
l
l
i
o
n
105.8
1,202
1,408
1,878
2,418
3,101
95
138
249
96
2006 2007 2008 2009 2010
Turnover Net Operatng Proft/(Loss)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
R
s
:
M
i
l
l
i
o
n
84
481
529
633
665
1770
43
51 33
77
2006 2007 2008 2009 2010
Turnover
Net Operatng Proft/(Loss)
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2006 2007 2008 2009 2010
0
Turnover(Net)
Proft/(Loss)From Operaton
Proft/(Loss)Before Taxaton
R
s
.
M
i
l
l
i
o
n
Consultancy group
The consultancy division has recorded a turnover (net) of Rs. 1260 mn. (as compared with Rs.631million in 2009),
The division has also increased the net operatng Proft to 206million (As compared with that of Rs.133 million
in 2009)
Table IV- (Turnover & Net Operatng Proft/ (Loss) of Consultancy group)
0
200
400
600
800
1,000
1,200
1,400
R
s
:
M
i
l
l
i
o
n
132
69.9 130
297
128
133
206
631
1260
2006 2007 2008 2009 2010
Turnover
49
Financial Flows
Financial fows during the year 2010 in terms of collecton of money from the clients are given below compared
with past four years period.
Assets
The total assets of the corporaton grew by 43% during the year. The corporaton increased its current assets to
Rs: 5,447 million from Rs: 3,808 million in 2009.
Mechanical & Electrical group

The turnover M & E division has decreased to Rs: 183 million in comparision with that of Rs: 274 million in 2009.
The net operatng proft of Rs: 3.9 million of the division in the previous year, reduced to a net operatng loss of
Rs:73.5million in 2010.
Collecton of Finance Corporaton
Growth of Assets
Table VI (Cash Collecton of the Corporaton)
Table V (Turnover & Net Operatng Proft / (Loss) of Mechanical & Electrical group)
Table VII (Growth of Assets)
Turnover & Net Operatng Proft/ (Loss)
-100
-50
0
50
100
150
200
250
300
R
s
:
M
i
l
l
i
o
n
84
145
274
183
-73
3.9
10.2
-25 -59
120
2006 2007 2008 2009 2010
Turnover
2008 2009 2010
Non-Current Assets 128 120 162
Current Assets 2,689 3,808 5,448
R
s
:
M
i
l
l
i
o
n
0
1,000
2008 2009 2010
2,000
3,000
4,000
5,000
6,000
Non-Current
Assets
Current
Assets
0
1,000
2,000
3,000
4,000
5,000
6,000
R
s
:
M
i
l
l
i
o
n
2006 2007 2008 2009 2010
Cash Collecton
1877
2422
2783
5000
4784
Other Revenues
In Comparision with the previous year, other income was decreased from Rs.26.8 million to Rs. 14.2 million
where as the rent income was increased by 21% respectvely
2006 (Rs'000) 2007 (Rs'000) 2008 (Rs'000) 2009 (Rs'000) 2010 (Rs'000)
Rent 6,024.00

12,770.00
7,122.00

5,938.00
7,208.00
Sales of Fixed Assets
(Unserviceable Assets)
8,813.00

495.00
410.00

12,006.00

Advertsement 1,203.00

2,995.00
3,627.00

471.00

Over head Bridge 743.00

680.00
671.00

569.00

Other
(Excluding Provision-2004)
1,007.00

8,260.00
644.00

7,835.00
6,816.00
17,790.00 25,200.00 12,474.00 26,819.00 14,025.00
Table VIII (Increase of Other Income)
Constructon Group
Key Members of the Management
Mrs.G.A.L.Nonis - Deputy General Manager
Mrs.P.D.Karawita - Manager
Mr.A.P.K.Manamperi - Actg. Manager
Mr.K.M.T.B.Jayasundara - Actg. Manager
Mr.Ranjan Fernando - Chief Engineer (Actg.)
Mr. K.A.Shantha Kumara - Actg. Manager
Mr.A.M.S.T.B.Alahakoon - Actg. Manager
Mr.W.G.A.Gajasinghe - Actg. Manager
Major Actvites
Heavy and light Civil Constructon work and Building Constructon work.
Review of Progress
The total turnover and the Proft of the Constructon Group during year 2010 were Rs.2751 Million and Rs.96.3
Million respectvely. It is an increase of Rs. 333 Million in turnover compared to the previous year. As in the
past, S.E.C. Constructon Group was able to keep its positon as the Main Contributor to the existence of S.E.C.
contributng Rs. 213.0 Million in year 2010.
Constructon Group has contnued the post war rehabilitaton works at Manner District during year 2010 even
amidst the other major Constructon works such as Constructon of Cricket Stadium at Pallekele for cricket
World Cup 2011,Constructon of Para-Clinical Building at University of Rajarata, Constructon of Mult Storied
Building for Disaster Management Centre and etc.
Though the turnover of Engineers/Technical Staf of Constructon Group was high during 2010 due to its poor
remuneraton compared to other similar organizatons, it could atract Junior Engineers/Technical Staf who
gained valuable experience under Senior Engineers.
No Site No Name of the Project
Contract
Sum
(In Millions)
1 1527 Library Building at university of Peradeniya 67.40
2 1556 Proposed Boys Hostel Complex ,Hetyawaththa. 87.35
3 1564-I Extra Hostel Complex , University of Moratuwa 69.68
4 1596 Prison Complex, Pallekale 373.66
5 1601-I Proposed Constructon of Grange System--Sainthamarthu 36.87
6 1601-II Proposed Constructon of Water Project-Sainthamarthu 9.19
7 1615 Para-Clinical Building for Faculty of medicine university of Rajarata 219.43
8 1630-III Constructon of Service Building for Natonal Zoological Garden ,Pinnawala 23.57
9 1631 Building of Buddhasrawaka Bikku University 83.34
10 1647 Constructon of Disaster Management Centre, Colombo 07 195.14
11 1671 Proposed Constructon of Chain Link Fence at presidents House, Kandy-Stage I 8.50
12 1671/1 Proposed Constructon of Chain Link Fence at Presidents House,Kandy-Stage II 17.50
13 1643/11 Constructon of one unit of quarters for an employee (house type 01) 5.93
14 1643/111 Constructon of one unit of quarters for an employee (house type 02) 8.15
15 1660
Reconstructon & Refurbishment
of Inland Revenue Department Building, Colombo 02.
240.00
16 1674
Proposed Repairs and Rectfcaton works for Lady Lochore Lean Fund
Building, Colombo 02.
1.25
17 1680
Rehabilitaton & Reconstructon of Damaged Building in 18 GN Division in
Vavuniya District
21.90
18 1683/1700 Repair & Reconstructon of Educaton Sector Buildings in Mannar 49.04
19 1684/1701 Repair & Reconstructon of Local Government Buildings in Mannar 33.23
20 1685/1702 Repair & Reconstructon of Health Sector Buildings in Mannar 54.60
21 1697/1704 Repairs & Reconstructon of Corporatve Sector Buildings in Mannar 12.32
Projects Completed in 2010
Anuradhapura
Buddhasrawaka Bikku University
Annual Report 2010 | 15
Contract Sum
(In Million)
1 1671/11
Constructon of Chain Link Security Fence Stage III at Presidents
House Premises, Kandy
13.69
2 1713/1
Supply & laying of pipe, constructon of wash out chambers, pump
house & fxing of specials for Zoological garden at Pinnawala
12.46
3 1713/11
Constructon of Storm Water Collecton & Disposal System for Depart-
ment of Natonal Zoological Gardens at Pinnawala
7.40
4 1713/111
Constructon super structure for Zoo service Building
for Zoological Garden at Pinnawala
119.57
5 1713/1V
Electrical Distributon Network System for Natonal Zoological Garden
at Pinnawala
149.48
6 1718 Constructon of Internatonal Cricket Stadium, Kengalla, Pallekele 857.38
7 1615 Para-Clinical Building, Faculty of medicine, university of Rajarata 219.43
8 1723
Proposed Building Complex (stage I) for Sri Lanka Bureau
Employment, Yatawata, Godigamuwa, Tangalle
79.50
9 1735
Supply & installaton of Passenger Lif with facilites for Disabled Per-
sons at Court Complex, Mount - Lavinia
8.58
10 1739
Constructon of Library Building for Gampaha Wickramarachchi
Ayurveda Insttute
68.37
11 1741
Proposed 2 Nos of Hostels, 400 mtrs. Athletc running track &
Pavilion for Tholangamuwa Central College, Tholangamuwa
213.80
12 1742
Constructon of Cricket Ground, Pavilion, Three Storied class room
block and improvements to Badminton Court at Kegalu Vidyalaya
249.04
13 1745
Proposed Residental Training Center for Migrant workers
at Mathugama for Sri Lanka Bureau of Foreign Employment,
Mathugama.
25.00
14 1746
Constructon of Building for the Faculty of Buddhist Studies
for Buddhasrawaka Bikku University at Anuradhapura
239.37
15 1747 Constructon of Disaster Management & Coordinaton Centre Stage II 385.71
16 1750
Proposed four Storied Building (Block C) for District Secretariat at
Matara Fort
139.02
Projects Awarded in 2010
17 1751 Constructon of Bus Stand at Gunasinghepura 13.60
18 1753 Constructon of Animal Nursery at Natonal Zoological Gardens 49.04
19 1753/1
Constructon of Two units of Staf Grade Quarters at Natonal Zoolog-
cal Gardens, at Dehiwala
19.20
20 1753/11 Constructon of Water Sump at Natonal Zoological Gardens at Dehiwala 7.00
21 1753/111 Constructon of Reptlian at Natonal Zoological Garden at Dehiwala 14.18
22 1756 Constructon of Administraton Building & Secton I, Remand Building 151.70
23 1757 Constructon of Pola at Nugegoda 72.61
24 1761 Proposed Commercial Complex Stage II at Radampola 21.52
25 1766
Constructon of two storied building including Central Dispensary and
Community Medical Centre, Akaragama, Minuwangoda
22.70
26 1796
Proposed Buddashrawaka Bikku University Constructon of Bound-
ary Wall from main gate, Stage 1
1.85
27 1796 1
Proposed Buddhashrawaka University- Constructon of Internal Roads
Stage 1
5.03
Total 2921.50
Contract Sum
(In Millionn)
1 1648
Head Ofce Building for Provincial Road Passenger Transport
Authority, Bataramulla
13.60
2 1753 Constructon of Animal Nursery at Natonal Zoological Gardens 49.04
3 1652
Constructon & Completon of the Proposed Development of Bus Stand
at Delgoda
57.44
4 1677
Constructon of Bus Stand & Commercial Complex, Highlevel Road,
Homagama
56.71
5 1705
Clinical Building for Faculty of Medicine and Applied Science, Rajarata
University, Phase 01 & 02
913
6 1713/1
Supply & laying of pipes ,constructon of washout chambers, pump
house & fxing of specials for Zoological Garden at Pinnawala
12.46
7 1713/11
Constructon of Storm Water Collecton & Disposal System for
Department of Natonal Zoological Gardens at Pinnawala
7.40
8 1713/111
Constructon of Super Structure for zoo service Building for Natonal
Zoological Gardens at Pinnawala
119.57
9 1713/iv
Electrical Distributon System for Department of Natonal
Zoological Gardens at Pinnawala
149.48
10 1718 Constructon of Internatonal Cricket Stadium at Kengalla,Pallekale 857.38
11 1723
Proposed Building Complex for Sri Lanka Bureau of foreign
Employment Yatawata,Godigamuwa,Tangalle
79.50
12 1735
Supply & Installaton of Passenger Lif with Facilites
for disabled People at Court Complex, Mount Lavinia
8.58
13 1739
Constructon of Library Building for Gampaha Wickramarachchi
Ayurwedha Insttute
68.37
14 1741
Proposed two Hostels, 400m athletc Running Track & Pavilion for
Tholangamuwa Central College, Tholangamuwa
213.80
15 1742
Constructon of Cricket Ground, Pavilion, Three Storied class room
Block and Improvements to Badminton Court at Kegalu Vidyalaya
249.04
16 1745
Proposed Residental Training centre for Migrant Workers
At Mathugama for Sri Lanka Bureau of Foreign Employment
25.00
17 1745/1
Proposed Residental Training centre for Migrant Workers-Class Room
Block at Mathugama for Sri Lanka Bureau of Foreign Employment.
13.40
18 1746
Constructon of a Building for the Faculty of Buddhist Studies
for Buddasrawaka Bikku University at Anuradhapura
239.37
19 1747 Constructon of Disaster Management & Coordinaton Centre - Stage 11 385.71
20 1750 Proposed Four Storied Building for District Secretariat at Matara Fort 139.02
21 1751 Constructon of a Bus stand at Gunasinghapura 13.16
22 1753 Constructon of Animal Nursery at Natonal Zoological Gardens Dehiwala 23.75
23 1753/1
Constructon of Two Units of Staf Grade Quarters at Natonal Zoologi-
cal Gardens, Dehiwala
19.20
24 1753/11 Constructon of Water Sump at Natonal Zoological Gardens, Dehiwala 7.00
25 1753/111 Constructon of Reptlian at Natonal Zoological Gardens, Dehiwala 14.18
26 1756 Constructon of Administraton Building and Secton 1 Remand Building 151.70
27 1757 Constructon of Pola at Nugegoda 72.61
28 1761 Proposed Commercial Complex-Stage11 at Radampola 21.52
Project Started In 2010
Review of Progress
The Annual turnover (gross) of the M & E group for the year 2010 is Rs.183 Million. It is decreased by 33% in
Comparision with the last years gross turnover of Rs. 274 Million.
The Project of the Reconstructon of Peoples Bank Building conducted by M & E Group was commenced in the
end of 2010.
Restructure Program is presently being implemented in this group with the view to Increase efciency and
productvity.
Mechanical & Electrical Group
Mr. Jayampathy Thennakoon - D.G.M.
D.I.P. Perera - Chief Engineer
Mr. S.H.S.M.J.Hewasiliyen - Works Manager (Peliyagoda)
Mr. M.S.Eheliyagoda - Works Manager (Dolamite-Mathale)
Mr. M.W.A.H.Wijayasuriya - Works Manager (Rathmalana)
Major Actvites
Steel Processing & Mechanical Operatons
Maintenance of heavy Mechanical & equipment related to constructons

Producton of Dolamite fertlizer lime and watered salt
Face-lif of
Peoples Bank
Head Ofce
Building
No Site no No Client Project Descripton
Contract
Sum
(Rs.Milion)
1 104 CPC Refnery Sapugaskanda
Execute service & necessary repairing jobs
of the fare stack unit including 96v1,
v2 vessels during MSD-2010 .
0.99
2 1710
Buddhist & Pali
University of Sri Lanka
Buddhist & Pali University of Sri Lanka
Electrical re-wiring at Hostel Building
Buddhist & Pali University.
1.15
3 1711 CMC
Reconstructon of Sewer manhole at
Duplicaton Road/Lorenz Road Juncton
1.9
4 1712 CMC
Improvement of storm water drainage
system at Saunders Place
8.99
5 1732 Internal-SEC CC Refurbishment of R Premadasa stadium 95
6 -
Internal-SEC
Constructon
Constructon of Cricket Stadium at
Pallekale
7 1734
Inland Revenue
Department
Maintenance of the Inland Revenue
Department Head Ofce Building
0.95
8 1736 Sri Lanka Army Repair work of Antenna Tower at Palaly 6.96
9 1743
Road Development
Authority
Reconstructon of bridge no.5/2 of
Marandagahamula-Badalgama Road
4.04
Total 119.98
Projects Started in 2010 Projects Completed in 2010
No Project No Client Project Descripton
Contract
Sum
(Rs.Milion)
1 104 CPC Refnery, Sapugaskanda
of the fare stack unit including 96v1, v2
vessels during MSD-2010
0.99
2 1710
Buddhist & Pali University of
Sri Lanka
Electrical re-wiring at Hostel
Building,Buddhist & Pali University
1.15
3 1711
Colombo Municipal
Council.
Duplicaton Road/Lorenz Road Juncton
1.90
Total 4.04
No Site no No Client Project Descripton
Project
Value
(Rs. Milion)
1 104 CPC Refnery, Sapugaskanda
of the fare stack unit including 96v1,
v2 vessels during MSD-2010 . 0.99
2 1710
Buddhist & Pali University of
Sri Lanka
Electrical re-wiring at Hostel Building
Buddhist & Pali University. 1.41
3 1711 Colombo Municipal Council.
Duplicaton Road/Lorenz Road Juncton 1.90
4 1712 Colombo Municipal Council
Improvement of storm water drain system
at Saunders Place 8.99
5 1725 Road Development Authority
Raising up of the bridge at Natupana,
Agalawata.
3.98
6 1732 Internal-SEC Refurbishment of R Premadasa stadium 95
7 - Internal-SEC Constructon of Cricket Stadium at Pallekale -
8 1734 Inland Revenue Department
Maintenance of the Inland Revenue
Department Head Ofce Building
0.95 per
month
9 1736 Sri Lanka Army Repair work of Antenna Tower at, Palaly 6.96
Constructon of Bridge on Meepe-Ingiriya
Road in Kalutara District 4.14
Reconstructon of bridge no.5/2 of
Marandagahamula-Badalgama Road 4.04
12 1744
Road Development
Authority
Reconstructon of Bridge no 7/5 on
Nayapamulla-Unanwita- Batuwangala Road 4.34
13 1754 Peoples Bank Head Ofce
Face Lifing of Peoples Bank Head Ofce
Building
356.54
Constructon of Bridge across Dehiwala
Canal at Dehiwala for Dehiwala Marine Drive 15.623
15 1760
Urban Setlement
Development Authority
Refurbishments of the Damaged canopies
in Sahaspura 2
16 1762 CMC
Repair of Collapsed Sewer Line, Galle Road
Wellawata
21.95
Total 528.813
Projects Awarding in 2010
Review of Progress
In year 2010, the Constructon Components Group hit the record turnover of Rs. 1770 million the highest
ever turnover that the group has produced so far. In comparision with the previous year, it is an increase of
Rs. 1,105 million. The turnovers steadiness arose mainly from Ketharama project, other sub projects and
Pre-cast yard.
The group generated a net operatng proft of Rs. 77.1 million in the year, which was mainly contributed by
the Pre-cast yard at Ekala and Sleeper yard at Dematagoda with 37.5 million and 29 million respectvely,
besides the proft of 10.6 million from the other yards including Rathmalana, Peliyagoda and Dankotuwa.
Also, the value of successfully completed projects in 2010 amounts to Rs. 72.08 million, which include the
projects such as Sri Lanka North Cooperaton Project N.H.D.A, Power Plant Project of the C.E.B and the
Constructon of Two Storied Building for Sri Lanka Rupavahini Corporaton.
On the other hand, the value of the awarded projects in 2010 which include Ketharama Project for Sri
Lanka Cricket, Seruwavila Project for NHDA and Ranaviru Apparels Project for Sri Lanka Army, amount to Rs.
1439.24 million.
Constructon Components Group
Mr. A.A. Piyadasa - Deputy General Manager
Mr. A.P. Tennakoon - Actg. Manager (Yards)
Mr. L.A.L. Liyanarachchi - Actg. Manager (Projects)
Major Actvites
Pre Cast Concrete Work
Making of Bricks and Blocks
Manufacturing of Building Materials
Constructon of Pre Cast Building
Refurbishment
of R.Premadasa
Internatonal
Cricket
Stadium
No Site No Client Project Descripton
Project cost
(Rs.Milion)
1 1650 Sri Lanka Railways
Constructon of Twin fats for way and
works staf for Sri Lanka Railways at Galle.
7.80
2 1672
Road Development
Authority
Removal of stores building
belonging to Ceylon Fertlizer Company at
Hunupitya.
21.45
3 1673 Ceylon Electricity Board
Fencing of the site at Mutur East for the
Trincomalee coal power project of Ceylon
Electricity Board
19.40
4 1682 Milco (Pvt.) Ltd.
Constructon of Pre-fabricated building
for Regional Manager's ofce at Meepe
3.45
5 1686
Sri Lanka Rupavahini
Corporaton
Constructon of Two storied building for
Sri Lanka Rupavahini Corporaton.
15.35
6 1695 Sri Lanka Cricket Constructon of Restng Shed at RPICS 2.30
7 1708
Sri Lanka Bureau of Foreign
Employment
Repair and Improvement of existng build-
ing for SLBFE Sabaragamuwa
provincial ofce Ratnapura
2.33
Total 72.08
No Site No Client Project Descripton
Project cost
(Rs.Milion)
1 1714 Sri Lanka Cricket
Refurbishment of R.Premadasa
Stadium under Sri Lanka Cricket. 1,235.04
2 -
Aviaton Services (Sri Lanka)
Limited
Pre Cast yard castng and supply
concrete tense posts to the Air Port and
Aviaton Service ( Sri Lanka)
Limited at Matala
14.03
3 1724
State Engineering corporaton
of Sri Lanka
Constructon of bridges in Kaluthara
District 5.00
4 1728 RDA
Constructon of Culverts on
Somawathiya Seruwavila Road From
(6+900)Km to (13+500)Km

38.13
5 1729 RDA
(13+500)Km to (22+000)Km
40.48
6 1730 RDA
(22+000)Km to (32+100)Km 35.43
7 1733 Sri Lanka Army
Constructon of 2 nos of single stores
building (ORs mess, Corprals club) and
three storied building (ORS billet) for
Ranaviru Apparels at Alawwa.
53.11
** All values are without VAT
Projects Awarding in 2010
8 1749 NHDA
Nawagampura community center
renovaton project under
Nagamupurawara Program
4.52
9 1748 NHDA
Kirulapura community center renovaton
project under Nagamupurawara Program 4.27
10 1758
Buddhasrawaka Bikku
University Anuradhapura
Supply & erecton of 2.4m high precast
boundary wall for Buddhasrawaka Bikku
University, Anuradhapura
2.20
11 1759 NHDA
Constructon of proposed community
center for Sri Wickramapura Housing
Scheme
7.03
Total 1,439.24
** All values are without VAT
Review of Progress
The turnover during the year was remarkable. Consultancy group undertook the Management Contract of the
Refurbishment of the Department of Inland Revenue Building of which the original contract price was Rs. 1041.27
million. Except for the civil constructon component of the project, all specialized items of work were carried
out by the consultancy group by sub contractng to specialists. This project was successful and the client has
expressed satsfacton on the project. The building was handed over on tme. With this experience, Consultancy
Group envisages undertaking similar specialized projects in future.
Another major project, for which consultancy services were completed up to tender stage and constructon was
commenced towards end of the year is the Clinical Building at Anuradhapura for the University of Rajarata. The est-
mated constructon cost of this project is Rs. 736 . 98 million (Excluding VAT).
However subsequently due to the clients added requirements, the total cost was increased to Rs.1.28 bil-
lion (Excluding VAT & Consultancy fee) for which approval is yet to be obtained. Other projects commenced
during the year are as follows Mention the projects.
Most of these Consultancy Projects were undertaken was for the provision of consortum Consultancy Services
including Architectural, Structural Services, Electrical and Specialist Services such as Air conditioning & Fire
fighting and Quantity Surveying.
Consultancy Group
Mr. M.W.J.L. de Silva - Deputy General Manager
Mr. M.D. Pathmasiri - Chief Engineer (Designs)
Ms. Dharshini Gamage - Chief Architect
Mr. L. Ramanayake - Chief Quantty Surveyor
Mr. S. Hapuarachchi - Chief Engineer (Electrical)
Mr. Hysinth Ranasinghe - Senior Architect
Ms. Rangika Alwis - Senior Architect
Mr. W.P.Sudharshana - Senior Architect
Mr. D.T. Rajasekaran - Senior Engineer
Mr. Vernon Fernando - Senior Engineer
Ms. Nirmali Jayakody - Senior Engineer
Mr. J.C. Kannangara - Senior Engineer
Ms. Udeni thalagalaarachchi - Senior Quantty Surveyor
Ms. Menaka Jayasinghe - Senior Quantty Surveyor
Major Actvites
Building and Civil Engineering Consultancy Works
No Site No Project Descripton
Estmated Cost of
Constructon
(Rs.Milion)
Total
Consultancy Fee
(Rs.Milion)
1 2007-13
Proposed boys' hostel for 400 students at
Mihintale
142 8.5
2 2007-13
Proposed boys' hostel for 400 students at
Mihintale
142.7 8.56
3 2007-14
Proposed Student / Staf Canteen & Student
Centre at Puliyankulama
37 2.22
4 2007-32
Para Clinical Building Complex at Saliyapura
wing I & wing II
219.4 13.16
5 2007-35
Proposed Building Complex, Faculty of
Architecture, University of Moratuwa
46 2.76
6 2008-99
Proposed building Complex Ola script,
University of Kelaniya
7.9 .4
7 2008-100
Proposed three storied New Canteen Building
University of Kelaniya
15.1 .9
8 DM-1288
Proposed three storied Building, Natonal
Transport Commission
86.3 5.1
9 2008-82
Proposed three storied Building Lanka
German Technical College
51 3
10 2008-05
Proposed Administraton Building,
Buddhasrawaka Bikku University
74.8 4.49
11 2007-05
Computer Laboratory & Computer Unit
Stage 1
60.1 3.6
12 2007-57
Proposed boundary wall Stage 11, Faculty of
Engineering, Hapugala
14.2 .8
13 2009-16 Inland Revenue Building 1,608 80.4
Staf on Permanent and Contract Basis in Relaton to the Last Two Years
Human Resources & Administraton Division
Mr. E.A.R. Edirisinghe - Deputy General Manager (HR & A)
Mr. E.A.R. Edirisinghe - Manager -Development & Training
Mrs. O.D.G.S.Jayaweera - Legal Ofcer
Mr. K.L.M. Samarathunga - Assistant Personnel Manager
Mr. Gamini Makolage - Administratve Ofcer
Ms. Tharukshi Liyanage - Administratve Ofcer
Mr. Major.D.N.R.Peiris - Chief Security Ofcer
Mr. Nimal Mendis - Public Relatons Ofcer
Mr. I.D. Dayananda - Transport Ofcer
Mr. K.S. Pushpakumara - Welfare Ofcer
In the year 2010 total number of employees of the corporaton was 2346.Among them ,there were1659 permanent
employees while 610 were on contract basis. The other 74 employees were on casual basis Comparison of staf on
permanent and contract basis in relaton tothe last two years are as follows
Descripton 2010 2009 2008
Permanent Contract Permanent Contract Permanent Contract
1 Chairman & Working Director 03 02 - 02
2 Senior Management Team 08 03 06 06 06 06
3 Engineer(Informaton Technology) 01 01 - 01
4 Engineer(Mechanical) 01 01 - 01
5 Engineers (Civil / Mechanical & Elect.) 48 97 53 67 59 40
6 Architects 13 15 14 10 16 08
7 Quantty Surveyors 04 25 04 15 05 04
8 Accountants 03 05 03 05 03 05
9 Administer 03 02 05 03 05 04
10 Other Executve Grades 37 15 34 10 35 04
11 Superintendent (C/M/E) 27 123 29 67 34 38
12 Draughtsman & AQSS 42 34 42 16 36 16
13 Leader of Work 25 31 25 27 20 27
14 Clerical & General 175 142 184 59 182 27
15 Security Services 116 12 126 02 89 02
16 Minor Staf 52 07 52 02 47 -
17 Skilled Staf 419 42 506 00 266 15
18 Unskilled Staf 687 53 689 03 417 03
19 Sub Total 1659 610 1772 293 1,214 193
20 Grand Total 2269 2065 1,407
Actons have been taken in 2010 to discontnue the services of casual employees who were recruited under H&T
Nos, with the closing down of the worksite. The following actons were also done by the HR Division in the year
2010.
Rs. 2000/- was paid to employees as a special payment for New Year. As in the year 2009, Rs.10,000/-was paid
as bonus in the month of December. It was also decided to make a payment of Rs. 5000/- in the next year as a
special New Year payment.
Technical & Non Technical categories were recruited to the Corporaton as new employees.
Actons were taken to implement the public Enterprises Circular No, 44/52, which states that
the retrement age is 57 years.
Distress loans were duty paid to the employees.
Skilled employees served in diferent categories were grated leave to obtain NVQ qulifcatons.
The categories of employees in the HR & Administraton Division are as follows
1. Deputy General Manager
2. Manager (Training & Development)
3. Asst. Personnel Manager
4. Legal Ofcer
5. Admin. Ofcer
6. Welfare Ofcer
There are 37 HR& Admin. Division
Legal Unit
The following cases, which have been fled against SEC by 17 workmen who worked in the sites of Sainthmarthu
and Periyaneelawani on worksites basis, claiming their wages and reinstatement back, were dismissed in favour
of SEC by labour Tribunal, Ampara on 25.05.2010. The cases are LT
522/2009, 523/2009, 524/2009, 525/2009, 526/2009, 527/2009, 528/2009, 529/2009, 530/2009, 531/2009,
532/2009, 533/2009, 534/2009, 535/2009, 536/2009, 537/2009, 539/2009.
Civil Appellate case NO CA 1027/96, an appeal by former employees wife against SEC at Civil Appellate court
claiming compensaton for her husbands death, have been dismissed on 15.09.2010, in favour of SEC
Colombo District Court Case has been setled on 12.11.2010. No. DMR 05865/2010 which has fled by
Sri Lanka Telecom against SEC at Colombo District Court, claiming damages for their Telecom cables. By paying
Rs. 175,000/- instead of Rs. 216,715.29 SEC have claimed Rs. 175,000/- pertaining to the case, from relevant
insurance Company.
Training has been provided for 210 students from Universites and Technical Colleges who have been registered
with NAITA and Technical Training Authority in the following categories.
Engineer (Civil) Quantty Surveyor
Superintendent (Civil) Foreman
Welder Electrician
In additon, as per in the previous year we have sent technical or non- technical ofcers to local universites
in order to obtain Post Graduate Degrees. Furthermore Technical Ofcers were sent to foreign and local short
training courses.
Finance Division
Mr. P.A.P.A. Panawala - Deputy General Manager (Finance)
Mr. P.M.A. Karunasinghe - Accountant (Constructon)
Ms. K.W.M.L.D. Keerthiratne - Accountant (Constructon)
Mrs. A. Nilupa De Silva - Accountant (Financial Accountng)
Mrs. K.M.G.R.W. Kariyawasam - Accountant (Salaries & Wages)
Mrs. B.L. Kusum Dayani - Accountant (Payments)
Mr. K.B.G.H.N. Kariyawasam - Accountant (Constructon Components)
Mr. M.M. Anorathna - Accountant (Consultancy)
Mrs. T.S. Apsara Rohan - Accountant (M&E)
Review Of Progress
Finance Division is serving all Operatonal and Service Groups of the State Engineering Corporaton of Sri Lanka (SEC)
The Finance Division contnued to support the operatonal groups of the SEC by providing essental services such
as payment of Salaries and Overtme, payment of suppliers and subcontractors and providing monthly manage-
ment informaton.
Because of the efcient Treasury Management of the Corporaton by the Finance Division, interest income on
Fixed Deposits and Repo interest income reached to Rs 15 Million for the year 2010 in spite of cash fow con-
straints faced by the SEC
SECundertook themassiveKetaramaandPallekaleInternatonal Cricket Stadiumprojects during theyear 2010whichwere
completed during a very short period of tme for the Cricket World Cup. The SEC had to employ many sub-Contractors and
Labour Contractors to achieve this uphill task. The payments for all those Sub-Contractors atached to these two massive
projects were managedby the Finance Divisionwithgreat difculty since a major part of the income was not receivedfrom
Sri Lanka Cricket.
Thesuccessful performanceof theFinanceDivisionwasmadepossibleduetothesupport extendedbytheChairmanandthe
Boardof Directors andespecially, thehardwork andcommitment of theFinanceStafat all levels.
7. Secretarial Asst.
8. Management Asst.
9. Book Binder
10. Lif Operator
11. Messenger
12. Skilled & Unskilled Employees
Internal Audit Division
Mr.R.M.A.S.Weerasena - Chief Internal Auditor
Internal Audit Reports
Theannual Audit programefor theyear under review, was approvedbytheBoardof Directors, andsubmitedtotheAuditor
General for his concurrencewhichwas received.
During the year 2010, the Chief Internal Auditor Submited 59 Audit reports to the management. Summarized versions of
thosereports weresubmitedevery quarter, totheAudit andManagement CommiteeandalsototheBoardof Directors.
Four sesions of theAudit &Management Commiteewereheldduring theyear 2010.
Summarized Statements of the Internal Audit Reports were also submited to the Auditor Generals Department.
Pre- Audit Checks
Final Payment dues to 149 employees, Gravity payment dues to 42 employees, No claim certfcate relevant to
153 Employees and Release of Final Payments on Sub Contracts 205 were checked.
Internal Audit Officers also attended at 196 Tender Openings during the year under revies.
1:3 Scope of Audit and Basis of Opinion
1:2 Responsibility of the Management for the Financial Statements
My responsibility is to express an opinion on these fnancial statements based on my audit. Audit opinion, com-
ments and fndings in this report are based on review of the fnancial statements presented to audit and sub-
stantve tests of samples of transactons. The scope and extent of such review and tests were such as to enable
as wide an audit coverage as possible within the limitatons of staf, other resources and tme available to me.
The audit was carried out in accordance with Sri Lanka Auditng Standards to obtain reasonable assurance as to
whether the fnancial statements are free from material misstatements.
The audit includes the examinaton on a test basis of evidence supportng the amounts and disclosures in fnan-
cial statements and assessment of accountng policies used and signifcant estmates made by the management
in the preparaton of fnancial statements as well as evaluatng their overall presentaton. I have obtained suf-
cient informaton and explanatons which to the best of my knowledge and belief were necessary for the purpose
of my audit. I therefore believe that my audit provides a reasonable basis for my opinion. Sub - sectons (3) and
(4) of the Secton 13 of the Finance Act No. 38 of 1971 give discretonary powers to the Auditor General to deter-
mine the scope and extent of the audit.
Management is responsible for the preparaaton and fair presentaton of these fnancial statements in accord-
ance with Sri Lanka Accountng Standards. This responsibility includes : designing, implementng and maintaning
internal control relevant to the preparaton and fair presentaton of fnancial statements that are free from mate-
rial misstatements, whether due to fraud or error : selectng and applying appropriate accountng policies; and
making accountng estmates that are reasonable in the circumstances.
The Chairman
State Engineering Corporaton of Sri Lanka
Report of the Auditor General on the Financial Statements of the State Engineering Corporaton for the year
ended 31 December 2010 in terms of secton 14(2)(c) of the Finance Act No.38 of 1971.
The audit of Financial Statements of the state Engineering Corporaton of Sri Lanka for the year 31 December
2010 was carried out under my directon in pursuance of provisions in Artcle 154(1) of the consttuton of the
Democratc Socialist Republic of Sri Lanka read in conjuncton with secton 13(1) of the Finance Act, No. 38 of
1971 and Secton 29(2) of the State Industrial Corporaton Act, No. 49 of 1957. My omments and observatons
which I consider should be published with the Annual Report of the Corporaton in terms of Secton 14(2)(c) of
the Finance Act appear in this report. A detailed report in terms of Secton 13(7)(a) of the Finance Act was sent
to the Chairman of the Corporaton on 27 October 2011.
Constructon
Group
Mechanical &
Electrical Group
Constructon
Components
Group
Consultancy
Group
Buddhasrawaka
Bikku University
Face-lif of
Peoples Bank
Head Ofce
Building
Refurbishment of
R. Premadasa
Internatonal
Cricket
Stadium
Proposed three
Storied Building,
Lanka German
Technical College
2. Financial Statements
2:1 Opinion
2:2 Comments on Financial Statements
2:2:1 Non-compliance with Sri Lanka Accountng Standards
2:2:2 Accountng Policies disclosed in the Financial Statements
2:2:3 Accountng Defciencies
The following instances of non-compliance with Sri Lanka Accountng Standards were observed.
(a) According to the Standard No. 14 and temporary changes in taxes should be shown under the Deferred Tax
Account. Nevertheless, the Deferred Tax Account had not been adjusted for the changes in the taxes in the year
under review.
(b) Even though a provision of Rs.247,918,919 had been made for payment of gratuity in terms of Standard No.
16, a specifc investment or a special fund had not been created for fnancing the responsibility of that provision.
(c) According to Standard No. 18, when the book value of fxed assets reaches zero value such assets should be
revalued. Nevertheless, fxed assets costng Rs. 255,710,022 had been shown in the fnancial statements at a
nominal value of Rs. 1 instead of being revalued.
(d) According to Standard No. 28, the assets and liabilites of each Division should be disclosed separately in the
fnancial statement relatng to each such Division. Nevertheless the Corporaton had not taken acton accord-
ingly.
The Corporaton had taken acton in terms of the Accountng Policy No. 1.4(b) in the computaton of profts on
contracts in the preceding years to account for the expenditure on contracts with less than 20 per cent work
completed as theexpenditure for the year. Nevertheless, profts had been computed on such contracts in the
year under review on the basis of the percentage of work completed.
The following observatons were made.
Even though the provision for slow moving assets as at the end of the year 2010 should have been made in
the fnancial statements by carrying out a proper computaton, the provision of Rs.21,217,216 made for the
year 2009 had been carried forward. Nevertheless, the value of the slow moving assets for the year 2010 as
computed by the Stock Verifcaton Commitee amounted to Rs.3,092,177
Even though the balances of Inter Departmental Current Accounts of each Division of the Corporaton
should be reconciled against each other at the end of the year, a diference of Rs.9, 939,086 was observed
due to the faulty reconciliaton. Even though the debit/ credit balances of the Inter Departmental Current
Accounts should be set of against each other and eliminated from the fnancial statements, the total of
the balances of Current Accounts of the respectve Departments totaling Rs.103,082,193 had been shown
as debtors and a credit balance of Rs.93,143,107 had been shown as creditors in the fnancial statements.
So far as appears from my examinaton and to the best of informaton and according to the explanatons given
to me, I am of opinion that the State Engineering Corporaton had maintained proper accountng records
for the year ended 31 December 2010 and except for the efects on the fnancial statements of the maters
referred to in paragraph 2:2 of this report, the fnancial statements have been prepared in accordance with
Sri Lanka Accountng Standards and give a true and fair view of the state of afairs of the State Engineering
Corporaton as at 31 December 2010 and the fnancial results of its operaton and cash fows for the year then
ended.
(a)
(b)
A balance of Rs.69, 878,678 to be debited as receivable from the sub-contractors had been shown as
receivable under the Foreign Purchases Control Account and the Consumer Letters of Credit Account.
Instead of accounting for foreign travel expenses, advertisement charges and stamp fees amounting to
Rs.838, 355 as revenue expenditure those had been brought to account as sundry debtors
An unusual credit balance of Rs.6, 565,121 in the Payment of Cheque with Order Advances Account and
an unusual debit balance in the Mobilization Advances from Clients Account amounting to Rs.48,725,004
had not been identified and adjusted appropriately.
Bank Charges and commission amountng to Rs.30,520,246 had been shown under the sundry expenses
instead of being shown under the fnancial expenses
In view of that erroneous adjustment of the Inter - Departmental proft margins in the computaton of the
overall proft of the Corporaton, the correct accumulated proft of Rs.131,175,066 on the modernizaton
of the Inland Revenue Building had been recognized as Rs.197,706,666. Thus the proft for the year had
been overstated by a sum of Rs.66,531,602.
Even though the receivables on the Modernizaton of Inland Revenue Building Project amounted to
Rs.142.32 million it had been shown in the accounts as Rs.450.61 million, thus overstatng the balance
receivable by a sum of Rs.308.29 million.
(c)
The balance of the Provision Account created for covering the expenditure that may be arisen during the
Maintenance Period of construction contracts completed as at 31 December 2010 was amounted to Rs.1,
916,238 and it was not disclosed for which worksites those provisions were related.
The diference between the balances of 05 accounts and the balances shown according to the schedules of those
accounts was amounted to Rs.57, 502,020.
Out of the current and non-current assets of the Corporaton, the debtors represented the highest value and
a trade debtors balance amountng to Rs.3,397,632,670 remained as at the end of the year under review.
The confrmaton of balances relatng to the amount had not been furnished to the audit. Out of this amount
a sum of Rs.214,039,272 had been debtors balances older than 05 years and over 95 per cent of that amount
being due from Government Insttutons is a special feature. The progress of recovery of debts had been at
a very low level while the trade debtors had increased by 59 percent as compared with the preceding year.
Out of the total trade creditors balance of Rs.120,956,415 balance amountng to Rs.2,769,899 had remained
outstanding for over 05 years. Efectve courses of acton had not been taken for the setlement of these
creditors balances.
Even though a sum of Rs. 22,512,074 payable to and as sum of Rs.5,356,353 receivable from the Urban
Development Authority, had been brought forward by the Corporaton contnuously since the year 2000, no
efectve course of acton whatsoever had been taken for the payment or recovery of those amounts. This
insttuton was regularly seen under the trade debtors and trade creditors.
The cash fraud of Rs.805,938 commited by the cashier of the Seruwila work site had been shown from the
year 2008 as a sum recoverable from him. No recoveries had been made in this connecton even up to the
end of the year under review. A case in this connecton is pending in the High Court, Trincomalee.
According to the Audit Fee bills, the audit fees payable for the years 1987 to 2008 amounted to Rs.7,826,334
and acton for payment had not been taken even up to the end of the year under review.
(d)
(f)
(h)
(a)
(b)
(c)
(e)
(g)
2:2:4 Inappropriate Disclosures
2:2:5 Unreconciled Accounts
2:2:6 Accounts Receivable and Payable
(d)
(e)
Even though a sum of Rs.1,741,893 had been shown as payable since the year 1991 for the assets of the
Building Materials Corporaton acquired by the Corporaton, acton had not been taken even up to the end
of the year under review either for the payment of the amount or to setle the mater.
The amounts payable by the Corporaton to the sub-contractors lapsed for over 05 years had been
Rs.41,297,719 and the total payables as at the end of the year amounted to Rs. 125,448,700.
Acton had not been taken even in the year under review for the setlement of the amounts totalling
Rs.7,466,362 relatng to the Temple of the Tooth Control Account and the Ministry of Buddha Sasana Control
Account brought forward in the accounts over a long period as payable.
The balance of the Advances to Suppliers Account as at the end of the year under review amounted to
Rs.40,286,942 and out of that a sum of Rs.1,246,816 had been older than 05 years. A sum of Rs.1,552,701
represented advances granted between 04 to 05 years
The issue of cheques with the Orders placed before the receipt of goods is done on a regular basis and
the balance of the Cheque Advances granted with Orders Account as at 31 December 2010 amounted to
Rs.167,120,857. An age analysis of the amount had not been presented.
Even though cash advances should be paid only to the cashiers of the work sites, cash advances amountng
to Rs.4,560,327 had been paid to various other ofcers in additon to the cashiers.
The Sub-contracts mobilizaton advances older than 05 years amounted to Rs.17,234,856 and the advances
less than 05 years old amounted to Rs.195,105,118. Out of the advances paid to the labour sub-contractors,
the unsetled balances of advances as at 31 December 2010 amounted to Rs.142,756,705.
An Advance Account had been maintained for the purchase of spare parts and the balance of that account
as at 31 December 2010 amounted to Rs.1,445,859.
Another Advance Account called Cash Advances for Services had been maintained and the year end balance
which had not been supported by an age analysis amounted to Rs. 5,966,611.
The Corporaton had granted advances in large extent regularly for various purposes and adequate acton had not
been taken to get setled such advances. Details appear below.
(g)
(b)
(d)
(f)
(f)
(a)
(c)
(e)
(h)
2:2:7 Irregular Payment of Advances
A sum of Rs.70,890,121 had been remited to the Commissioner General of Inland Revenue as at the end of
the year under review as the Withholding Tax on the services procured from the Corporaton by the client
insttutons. This situaton had arisen due to the failure to obtain a Tax Directve in terms of Secton 153 of
the Inland Revenue act, No. 10 of 2006. The Tax Directve had been obtained with efect from 01 June 2008.
he applicaton made by the Corporaton on 16 December 2010 to obtain a Tax Directve on the recovery of
Withholding Tax from the interest income from fxed deposits had been rejected due to the failure of the
Corporaton to setle its tax liabilites properly. As such, the Bank had deducted a sum of Rs.601,263 as
the Withholding Tax on interest income in the year 2010 alone and remited to the Department of Inland
Revenue. The accumulated balance of the Withholding Tax on Interest Income Account as at 31 December
2010 amounted to Rs. 5,907,715.
Even though a provision of Rs.9.5 million for tax had been made from the year 2003 without correct
identfcaton, acton had not been taken up to the end of the year under review to setle the account.
The sum of Rs.87,742,509 as at the end of the year under review in the unidentfed debit balance of
Value Added Tax and the Goods and Services Tax included the Value Added Tax and Goods and Services
Tax amountng to Rs.84,762,685 existng over a number of years and a sum of Rs.172,505,194 being the
Value Added Tax receivable on inputs. The Corporaton had not taken afectve course of acton for the
setlement of these taxes.
A tax liability of Rs.136,049,594 inclusive of the penalty of Rs.41,730,813 had arisen on 20 Assessment
Notces issued by the Department of Inland Revenue on the Value Added Tax, Naton Building Tax and
Economic Service Tax due to the failure to setle the pasts tax liabilites properly. Acton had not been
taken either for the setlement of the amount or for making provision therefore in the accounts.
Despite the instructons issued against the creaton
of posts or flling of vacancies without the approval
of the Department of Management Services, 22
unapproved posts had been created and 156 em-
ployees had been recruited to those posts. Salaries
amountng to Rs.29,229,345 had been paid to them
in the year 2010. The Chief Architect, Chief Estma-
tor and the Chief Engineer (Contract Designs) which
are essental for the achievement of the objectves
of the Corporaton remain vacant since the year
2005 without recruitment.
Management Services Circular No. 28(ii) of 01
August 2006 and leter No. PMS/E.3/43/4/265/1
dated 25 November 2009 of the Director General
of Management Services.
(a)
(c)
(e)
(b)
(a)
(d)
2:2:8 Weaknesses in the Tax Management
2:2:9 Non-compliance with Laws, Rules, Regulatons and Management Decisions
Non-compliances with the following laws, rules etc. were observed.
Reference to Laws, Rules etc.
Non-compliance
The Approved Cadre of the Corporaton as at 01
September 1998 and the Scheme of
Recruitment
Financial Regulaton 395 of the Democratc Socialist
Republic of Sri Lanka
Leter No. BD/356/303/23 dated 28 April 2004 of
the Department of Natonal Budget.
Public Enterprises Circulars
Circular No. PED/28 of 31 January 2005
Circular No. 108 of 12 May 1996.
According to the approved Cadre and the Re-
cruitment Procedure, the permanent unskilled
cadre is 500. Nevertheless, 187 unskilled em-
ployees in excess of the approved cadre had
been given permanent appointments. Those
had been paid a sum of Rs. 44,803,498 as sala-
ries in the year 2010.
Sixteen skilled employees had been recruited in
the year in accordance with the restructure pro-
posals submited in the year 2009 but not ap-
proved. A sum of Rs.4,805,760 had been paid as
their salaries.
Even though the Bank Reconciliaton Statements
should be furnished to the Auditor General on the
specifed dates, the partculars of reconciliatons
and the Bank Statements relatng to Bank balanc-
es of the Corporaton amountng to Rs.6,939,946
had not been furnished to audit.
Even though the balance from the money re-
ceived under the Voluntary Retrement Scheme
in the year 2003 to 2007 remaining afer the pay-
ment of compensaton paid should be refunded
to the Treasury, the balance as at 31 December
2010 amountng to Rs.20,278,812 had not been
refunded to the Treasury.
Even though the approval of the Treasury should
be obtained for the purchase of motor vehi-
cles by the Government Insttutons, such ap-
proval had not been obtained for the purchas-
es of 07 double cab motor vehicles valued at
Rs.10,671,360.
The Corporaton had made donatons amountng
to Rs.2,782,139 during the year without the ap-
proval of the Cabinet of Ministers.
(b)
(c)
(d)
(e)
(i)
(ii)
(i)
(ii)
Natonal Procurement Agency Circular No. 8 of 25
January 2006
A sum of Rs.2,574,335 had been paid to two insttu-
tons supplying hiring car services and for 05 motor
vehicles procured on hire basis without calling for
bids.
The Corporaton had not prepared a Procurement
Plan for the year 2010 in terms of Secton 4.2 of the
Procurement Guidelines.
(f) (i)
(ii)
2:2:10 Lack of Evidence for Audit
3. Financial and Operatng Review
3:1 Financial Review

3:1:1 Financial Results
The operaton of the Corporaton for the year under review had resulted in a pre-tax net proft of Rs.133,063,356
as compared with the pre tax net proft of Rs.313,065,616 for the preceding year, thus indicatng a decrease of
Rs.180,002,260 in the fnancial results for the year under review. The decrease of in the profts earned from the
constructon projects in the year under review as compared with the preceding year had been the main reason
for the decrease.
The evidence indicated against the following items of account had not been furnished to audit.
Items in the Financial Statements
Cheque with Order Advances Ac-
count
Advances for Services
Special Cash Advance
Capital Receipts on the relocaton of
the Premix Yard from Narahenpita.
Balance of the Account No. 9934
included in the Cash and Cash
Equivalents.
Cash balance of Sri Lanka State
Engineering Corporaton (Qatar)
Company Limited.
Sundry Expenses
Money receivable from
Customers to the Corporaton
Money Payable by the
Corporaton to customers
Other Creditors and Accounts
Payable.
Value Rs.
167,120,857
5,966,611
4,560,327
22,656,456
1,880,176
5,958,715
737,377,194
418,909,383
1,293,651,840
12,897,756
Evidence not made available
Age Analysis
- do -
Age Analysis
Source of Receipts and Files
containing transfer docments.
Bank Account, Bank Statements,
Bank Reconciliatons,
Confrmaton of Balance.
Bank Confrmatons, Bank
Statements, Credit Advices.
Bank Reconciliatons,
Detailed Schedules.
- do -
- do -
Journal Vouchers
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
3:2 Corporate Plan and Acton Plan
(a) Corporate Plan
(b) Acton Plan
3:3 Operatng Inefciencies
Even though a copies of the detailed Corporate Plan prepared and updated should be furnished 15 days
before the commencement of the fnancial year to the Auditor General, the Secretary to the Commitee
on Public Enterprises and to the Department of Public Enterprises in terms of the Circular No. PED 47 of 18
December 2007 of the Department of Public Enterprises and Chapter 5 of the Public Enterprises Guidelines
on Good Government, the Corporaton had not taken acton accordingly. The Corporate Plan for the years
2010 to 2015 had been prepared in the year 2011.
The Corporaton had not prepared and updated Corporate Plan and the Acton Plan annually afer the year
2006. As such it was observed that the Corporaton did not have a clear vision of the targets for achievement
in the years 2007, 2008, 2009 and 2010 and how such targets were to be achieved in the respectve years.
The complete withdrawal in the year 2010 of the Corporate Plan for the years 2009 to 2013 prepared in the
last quarter of the year 2009 can be sited as an example
The following observatons are made in this connecton.
The Corporaton had paid a sum of Rs.6,944,000 to a private company for the purchase of roofng
sheets for the Project for the Constructon of Houses for the Displaced Persons in the Menik Farm,
Setkulama before the receipt of goods and a stock of roofng sheets valued at Rs. 3,318,000 only
had been supplied. A case had been fled for the recovery of the sum of Rs.3,626,000 overpaid by
the corporaton. The amount was being setled in installments and the outstanding balance as at
the end of the year under review amounted to Rs.2,466,000 was to be recovered from the company.
Even though the Corporaton had cash and cash equivalents and fxed deposits amountng to
Rs.171,038,073 as at the end of the year under review the Bank Overdrafs payable as at that date
amounted to Rs.110,000,614. The Corporaton had not paid proper atenton for reducing the Bank
overdrafs by utlizing such fnancial assets. As such a sum of Rs.2,418,917 had to be paid as over-
draf interest.
The value of losses and damage that had taken place due to the lack of proper management of the
work sites of the Corporaton during the year under review totalled Rs.3,054,088.
The Corporaton had spent a sum of Rs.34,391,557 on the motor vehicles procured on hire basis in
the year under review due to the lack of an adequate feet of motor vehicles and that
represented 40 per cent of the proft afer tax for the year.
(a)
(b)
(c)
(d)
3:4 Defciencies in Contract Administraton
The following observatons are made in this connectons.
Constructon of the Science and Technology Laboratory Building of the Faculty of Agriculture, University of
Peradeniya had been commenced before the approval of the Bills of Quanttes by the Technical Evaluaton
Commitee. The Bills produced by the Corporaton had been amended considerably by the Technical Evalu-
aton Commitee. As such the Corporaton had to forgo a sum of Rs.2,269,446 for the work done in the year
under review.
The Corporaton had incurred a loss of Rs.188,493,804 as at 31 December 2010 due to incurring costs ex-
ceeding in bid values even afer taking into consideraton of the approved price variances in respect of 16
constructon contracts.
(a)
(b)
3:5 Performance
The following observatons are made.
The Mechanical and Electrical Division had been running at losses contnuously from the year 2001 to 2008
and earned a proft of Rs.3.8 million in the year 2009. It had incurred a loss of Rs.73.5 million again in the year
under review. Accordingly the cumulatve loss from the year 2001 amounted to Rs.277.2 million.
Ratmalana Yard of the Mechanical and Electrical Division had not earned any proft whatsoever during the
past 10 years and its cumulatve loss amounted to Rs.73.3 million.
A review of the operatons of the Matale Dolomite Pre-mix Yard of the Corporaton revealed that except for
the year 2006, it had been running at losses in the rest of the past 13 years. A loss of Rs.4.8 million had been
incurred in the year under review. The cumulatve loss for the period amounted to Rs.32.6 million.
The Brick and Carpentry Products Yard of the Corporaton at Dankotuwa is situated on land 07 acres in extent.
A large porton of the land is underutlized. Out of the past 14 years, the operatons of the yard in 12 years,
including the year under review, had resulted in losses. The cumulatve loss amounted to Rs.23million.
Even though the Brick and Carpentry Products Yard at Dankotuwa had been established for obtaining the
brick and wooden products required for the constructon works of the Corporaton, the use of bricks pro-
duced by that yard for constructon works had been at a very low level while the bricks required had been
purchased from outside. This was one reason for the losses incurred by the Yard. Similarly the consumer
demand had decreased due to the prices being fxed at rates higher than those of the compettors. As such
the sale of bricks in the year under review had resulted in a loss of Rs.472,221
Even though the Aluminum Workshop of the Constructon Division at Ratmalana had earned a proft of
Rs.19.4 million in the preceding year, it had incurred a loss of Rs.2.8 million in the year under review.
The labour costs of the Mechanical and Electrical Division and the Constructon Accessories Producton
Units of the Constructon Division of the Corporaton had not been managed in a manner to suit the income.
The labour costs of the Maligawata Workshop, the Matale Dolamite Pre-mix Yard and the Peliyagoda Pre-mix
Yard of that Division ranged between 54 per cent to 65 per cent as compared with the income. The labour
cost of the Ratmalana Workshop of the Mechanical and Electrical Division amounted to 388 per cent as com-
pared with the income.
A sum of Rs.3,159,250 had been paid in the year to 41 Marketng Promoton Ofcers recruited without ap-
proval with a view to launching Island wide Marketng Promoton and Publicity Programmes. Nevertheless,
the turnover of the Producton Workshop at Matale Dankotuwa, Ratmalana, etc. had not increased by an
appreciable level and contnued to remain in the loss incurring status. In additon, expenditure amountng
to Rs.4,162,833 had been incurred on business promoton in the year under review.
Even though a sum of Rs.6,038,110 contnued to be shown by the Corporaton in the fnancial statements
over several years as capital work in-progress, such works had not been completed even by the end of the
year under review.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
3:6 Identfed Losses
A loss of Rs.158.24 million had been incurred on 31 Constructon contracts executed by the Corporaton in
the year 2010.
The Value Added Tax amountng to Rs. 168.99 million receivable on the work done amountng to Rs. 1,408
million out of the bill value of Rs. 1,444 million on the Modernizaton of the Khetarama Internatonal Cricket
Stadium had not been received by the Corporaton from the Sri Lanka Cricket Board.The reason adduced in
this connecton was that the Sri Lanka Cricket Board is enttled to the Value Added Tax exempton. Neverthe-
less, the Corporaton had paid Value Added Tax amountng to Rs.26.38 million in making payments to the
Sub-contractors.
According to the leter No. FP/06/20/03/03/19(SP-Vol ii) dated 01 February 2011 of the Director General of
Public Finance of the Ministry of Finance and Planning exempton from tax had been granted to Sri Lanka
Cricket Board only for the work done during the 03 months from 01 February 2011 to 01 May 2011. As such
it was clear that tax exempton had not been received for the work done prior to that period. As such the
Corporaton had been deprived of a sum of Rs.195.37 million comprising the Value Added Tax of Rs.26.38
million paid in the bills of sub-contracts and Value Added Tax of Rs.168.99 million not received on the work
done.
(a)
(b)
3:7 Transactons not supported by Adequate Authority
3:8 Uneconomic Transactons
The approval of the Board of Directors had not been obtained for the write of from books the fnished
stocks valued at Rs.32,051,305 and the purchase of 02 double cab motor vehicles valued at Rs.3,048,960 on
lease purchase basis
Eforts had been made by the Corporaton since the year 2008 to launch constructon projects in foreign
countries and earn income and the Chairman had, by his reply No. TH/C/SEC/FA/2009 dated 23 March
2010, informed that the Corporaton was successful in securing constructon projects valued at U.S.$ 3.9
million (Rs.460 million approximately) from the Maldives in the year 2009. Accordingly the Corporaton
had spent a sum of Rs.12,338,063 by the end of the year 2009 and sum of Rs.751,520 and Rs.41,120 had
been paid in the year under review for the publicaton of a newspaper advertsement for the recruitment of
employees for the constructon of a housing complex of the Government of Libya and for obtaining private
visas for an ofcer for 02 years in the United Kingdom respectvely.
(a)
Nevertheless, the Corporaton had failed to launch constructon works in any foreign country, obtain any
procurement or earn any income even up to the end of the year under review. All expenditure incurred had
become fruitless expenditure.
The Corporaton had failed to recover the sum of Rs.5,958,715 deposited in a Bank Account in Doha in the
year 2009 for the Bank transactons of Sri Lanka State Engineering Corporaton (Qatar) Company Limited for
launching constructon projects in foreign countries.
A sum of Rs.2,212,711 had been deposited in an ordinary savings account over a number of years and the
annual interest received thereon amounted to Rs.50,036. Had that amount been invested in a fxed deposit
at the interest rate of 7 per cent that prevailed in the year under review, an income of Rs.154,890 could have
been earned.
The Corporaton had to pay a sum of Rs.1,779,433 as liquidated damages in the year under review as a result
of the failure to complete the constructon contracts within the contract periods.
(b)
(c)
(d)
(a)
(b)
(c)
3:9 Transactons of Contentous Nature
The following observatons are made.
Seventeen computers used by other insttutons and fully depreciated had been purchased for Rs.232,050
contrary to the provisions in the Procurement Guidelines.
According to the agreement entered into by the Corporaton with a private company on 10 November 2006
for the computerizaton of the Accounts Division, Administraton Division and the Stock Control Division the
work should have been completed within 03 months from that date. Nevertheless, only the salary system
had been computerized by the end of the year 2010. Even though a sum of Rs.1,325,537 had been paid to
that Company, the work had been stopped halfway.
A full-tme permanent ofcer of the Corporaton released to a temporary post in the Ministry and receiving
the salary from the Ministry, had been paid an allowance by the Corporaton, thus causing a fnancial loss of
Rs.270,000 to the Corporaton. Even though the Secretary to the Ministry of Constructons, Engineering Serv-
ices, Housing and Common Amenites had informed the Corporaton in October 2010 to recover that amount
from the Board of Directors which approved the payment, the Corporaton had failed to take any course of
acton whatsoever in that connecton.
(a)
(b)
3:10 Human Resources Management
As the Corporaton had failed to prepare the Scheme of Recruitment including the Cadre List and submit
for approval under the cadre Restructure Proposals of the year 2009, the Corporaton had not been able
to recruit employees and promote employees. The Corporaton had not been able to make 52 promotons
relatng to 07 categories of essental services.
According to the Scheme of Recruitment approved in the year 1998 the permanent cadre of the Corporaton
had stood at 1,991 and the total cadre as at 31 December 2010 stood at 2,283 and comprised 1,671 perma-
nent cadre, 517 on contract basis, 44 casual employees and 51 others.
3:11 Internal Audit
3:12 Supply of Resources of the Corporaton to other State Insttuton
3:13 Underutlised, Repairable, Broken Down and Slow Moving Assets
3:14 Budgetary Control
4. Systems and Controls
An internal audit of 41 work sites out of the 100 work sites in operaton in the year under review had not
been carried out.
An Internal Audit Programme adequate to evaluate the overall performance of the Corporaton had not
been implemented.
The Corporaton had spent a sum of Rs.3,423,724 contrary to the provisions in Secton 9.4 of the Public Enterpris-
es Circular No. PED/12 of 02 June 2003 on behalf of the Ministry in connecton with motor vehicle hire charges,
expenditure on the constructon of stages and air travel costs.
Even though large quanttes of underutlized, repairable, broken down and slow moving assets, the value of which
cannot be determined exist in each and every work site of the Corporaton over a number of years, acton had not
been taken even up to the end of the year under review to dispose of those on fnancially favorable terms or to use
them efectvely. The existence of those assets in the respectve stores results in incurring heavy overhead costs and
congeston of storage space. As such any opportunity of utlizing them efectvely had also been lost.
The actual income and the actual operatng proft of Rs.5,921.76 million and Rs.122.97 million respectvely according
to the fnancial statements presented by the Corporaton as compared with the budgeted amounts of Rs.5,398.09
million and Rs.1,112.33 million revealed variance of Rs.523.67 million in the income Rs.989.36 million in the operat-
ing proft. Thus it was observed that the budget had not been made use of as an efectve instrument of fnancial
management control.
Defciencies observed during the course of audit were brought to the notce of the Chairman of the Corporaton
from tme to tme. Special atenton is needed in the following areas of systems and controls.
H.A.S. Samaraweera
Auditor General
(a) Accountng for Contracts
(b) Accounts Receivable and Payable
(c) Cash Management
(d) Tax Management
(e) Budgetary Control and Corporate Plan
(f) Procurement Procedures
(g) Advances
(h) Contract Administraton
(a)
(b)
Financial Reports
Balance Sheet
Financial Summary
Income Statement
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements & Accountng Policies
Balance Sheet as at 31
st
December 2010
2010 Actual Rs. 2009 Actual Rs.
NOTES
Assets
Non-current Assets
Property, Plant and Equipment 2 155,549,743 112,815,299
Investments in Shares 3 1,200,000 1,200,000
Capital Work in Progress 4 6,038,110 6,038,110
162,787,853 120,053,409
Current Assets
Inventories 5 401,616,002 280,905,172
Trade Debtors 6 2,615,772,542 1,577,933,537
Retenton 7 741,493,365 541,221,905
Other Debtors & Receivables 8 907,930,863 547,012,010
Deposits Recoverable 9 10,994,916 8,553,754
Due from Customers 10 418,909,383 292,602,550
Fixed Deposits 11 17,636,174 16,883,505
Cash & Cash Equivalents 12 333,440,330 542,820,741
5,447,793,575 3,807,933,174
Total Assets 5,610,581,428 3,927,986,583
Equity and Liabilites
Capital and Reserves
Voted Capital 13 70,000,000 70,000,000
Reserves 14 31,373,968 31,373,968
Accumulated Proft/(Loss) 15 385,976,724 319,889,739
Total Equity 487,350,692 421,263,707
Non-Current Liabilites
Long Term borrowings 16 30,800,000 30,000,000
Deferred Liabilites 17 247,918,919 245,325,085
278,718,919 275,325,085
Balance Sheet
2010 Actual Rs. 2009 Actual Rs.
NOTES
Current Liabilites
Bank Overdraf 18 110,000,614 66,516,385
Treasury Loan& Interest 19 4,006,293 4,006,293
Bill Discount Facilites 20 - 49,228,698
Trade Creditors 21 683,431,614 456,353,316
Other Creditors & Payables 22 1,291,435,451 530,520,302
Due to Customers 23 1,293,651,840 973,343,424
Mobilizaton Advances 24 1,461,986,005 1,151,429,373
4,844,511,818 3,231,397,791
Total Equity and Liabilites 5,610,581,428 3,927,986,583
Directors certfcate in terms of Public Enterprises Circular No PED 45 The Accountng statements on pages 02-
03 and Notes on pages 04 to 7A from an integral part of these Financial Statements. The Board of Directors is
responsible for the preparaton and presentaton of these Financial Statements.These Financials Statements
were approved by the Board of Directors and signed on their behalf
Chairman Director
Page 1
Assets
2010
Audited
2009
Audited
2008
Audited
2007
Audited
2006
Audited
2005
Audited
Non-Current Assets
Property,Plant &
Equipment
155,549 112,815 120,454 128,256 95,447 61,274
Investment in Shares 1,200 1,200 1,200 1,200 1,200 1,200
Capital work in Progress 6,038 6,038 6,024 3,921
162,787 120,053 127,678 133,377 96,647 62,474
Current Assets
Inventories 401,616 280,905 357,240 274,594 200,838 132,908
Trade Debtors 2,615,772 1,577,933 1,039,671 1,197,573 722,064 599,431
Retenton 741,493 541,221 422,284 320,649 295,604 227,633
Other Debtors &
Receivables
907,930 547,012 380,514 311,634 216,797 106,465
Deposits 10,994 8,553 5,806 6,000 4,085 -
Cash & Cash Equivalents 333,440 542,821 542,820 161,135 171,777 157,836
Assets
2010
Audited
2009
Audited
2008
Audited
2007
Audited
2006
Audited
2005
Audited
Due from customers 418,909 292,602 363,611 - - -
Fixed Deposit 17,636 16,883 - - - -
5,447,790 3,807,930 2,689,915 2,271,585 1,607,081 1,224,273
Total Assets 5,610,577 3,927,983 2,817,594 2,404,962 1,703,728 1,286,747
Equity & Liabilites
Capital & Reserves
Voted Capital 70,000 70,000 70,000 70,000 70,000 70,000
Reserves 31,374 31,374 31,374 31,374 31,374 31,374
Accumulated
Proft / (Loss)
385,976 319,889 (45,280) (5,360) (134,044) (216,161)
Total Equity 487,350 421,263 247,153 96,013 (32,670) (216,161)
Non-current Liabilites
Due to customers
Long term borrowings 30,800 30,000 30,800 40,044 59,966 68,921
Deferred Liabilites 247,918 245,325 216,353 170,864 133,120 118,525
278,718 275,325 247,153 210,908 190,086 187,446

Current Liabilites
Bank Overdraf 110,000 66,516 32,022 70,550 80,289 68,796
Interest on Treasury Loans 4,006 4,006 3,878 3,750 3,622 -
Bill Discount Facilites - 49,228 83,065 80,867 100,000 -
Trade Creditors 683,431 456,353 328,170 315,929 287,714 223,102
Other Creditors & Payables 1,291,435 530,520 527,879 682,069 523,909 403,752
Mobilizaton Advances 1,461,986 1,151,429 801,247 741,804 398,718 398,250
Due to customers 1,293,651 973,343 647,523 203,072 155,681 120,186

Total Equity & Liabilites 5,610,577 3,927,983 2,817,594 2,404,962 1,703,728 1,286,747
Revenue
2010
Audited
2009
Audited
2008
Audited
2007
Audited
2006
Audited
2005
Audited
Revenue 5,921,760 3,794,483 2,652,217 2,219,047 1,843,109 1,118,663
Net Operatng Proft/ (Loss)
Constructon 96,347 203,916 138,174 94,865 105,899 68,831
M & E (59,764) 17,563 1,974 (25,230) (59,010) (58,360)
CC 77,101 32,985 51,282 43,103 84,041 2,161
Consultancy 206,495 177,423 48,572 130,442 69,862 31,507
320,179 431,887 240,002 243,180 200,793 44,140
Less: Admin Expenses 197,205 150,330 138,910 85,143 145,593 67,044
Less: Provision for Bad &
Doubtul debts
19,357 29,513 58,330 54,863 52,077 19,119
Proft / (Loss) from
operatos
103,617 252,044 42,762 103,174 3,123 (42,024)
Add: 14,025 26,819 12,114 25,200 17,790 5,638
15,678 34,263 5,471 3,102 4,479 1,481
Less: 256 62,337 769 3,610 5,489 7,191
Proft / (Loss) Before Taxa-
ton
133,064 313,064 59,578 127,866 19,903 (42,095)
Less: 46,572 38,456 8,936 19,180
Proft / (Loss) Afer Taxaton 86,492 274,608 50,642 108,686 19,903 (42,095)
Add: - - - 30,179 83,000 57,077
Less: - - - - 5,976 100
Net Proft / (Loss) For the
Year
86,492 212,333 50,642 138,865 96,927 14,882
Income Statement Statement of Changes in Equity as at 31.12.2010
Share
Capital
Rs.
Capital
Reserves Rs.
General
Reserves
Rs.
Accumu-
lated
Proft
Rs.
Total
Equity
Rs.
Balance as at 31 December 2007 70,000,000 27,738,806 3,635,162 (5,360,951) 96,013,017
Net Proft/(Loss) For The Year - - - 50,641,565 50,641,565
Transferred During the Year - - -
Balance as at 31 December 2008 70,000,000 27,738,806 3,635,162 45,280,614 146,654,582

Transferred During the Year - - -
Transferred During the Year - - - (20,404,197) (20,404,197)
Prior year Adjustments
Cash Flow Statement 2010
2010 Rs. 2009 Rs.
Cash Flows from Operatng Actvites
Net Proft/(Loss) before Taxaton 133,063,356 313,065,617
Interest - Expenses 2,594,831 190,337
Interest - Income (15,678,270) (34,263,052)
Proft from Sales of Fixed Assets (20,404,197)
Adjustment for :
Extraordinary Items
Prior Year Adjustment
Depreciaton 35,208,931 38,278,584
Provision for Bad & Doubtul debts 19,357,945 29,512,727
Provision for Accrued expenses - 203,457,081
Provision for Obsolete stocks - 17,870,867
Provision for income tax - -
Provision for payment of Gratuity 5,204,240 53,503,419
Operatng Proft Before Working Capital Changes 159,346,836 621,615,580
Increase in inventories (120,710,830) 58,464,258
Increase in Trade Debtors & Other Receivables (1,721,946,057) (697,496,887)
Increase in Trade Creditors & Other Payables 1,243,068,578 155,918,639
Increase in Mobilizaton Advances 310,556,632 350,182,355
Operatng Proft before payment of gratuity (129,684,841) 488,683,945
Less: Gratuity Paid (2,610,406) (24,531,337)
Tax Paid (38,456,493)
Net Cash Flows from Operatng Actvites (132,295,247) 425,696,115
Cash Flows from Investng Actvites
Capital Work in Progress - (13,238)
Acquisiton of Property, Plant & Equipment (55,551,090) (30,652,260)
Proceeds from sale of Property, Plant & Equipment -
Interest Received 14,053,349 34,497,329
Net Cash Flows from Investng Actvites (41,497,741) 3,831,831
Cash Flows from Financing Actvites
Interest Paid (2,594,831) (62,337)
Loan Obtained 800,000
Lease Payment (10,411,949) (8,109,107)
Repayment of Bill Discount Facilites (49,228,698) (33,816,916)
Repayment of Loans - -
Net Cash Flows from Financing Actvites (61,435,478) (41,988,360)
Net increase in Cash and Cash Equivalents (235,228,466) 387,539,586
Net Cash and Cash Equivalents at the beginning of the year 476,304,357 88,764,771
Net Cash and Cash Equivalents at end of the Period 241,075,891 476,304,357
Net Cash and Cash Equivalents
Cash at Bank and in Hand 75,189,546 20,688,616
Fixed Deposits and Call Deposits 188,674,248 258,914,830
Savings at Bank 2,212,711 2,117,295
REPO 85,000,000 261,100,000
Bank Overdraf (110,000,614) (66,516,384)
241,075,891 476,304,357
The State Engineering Corporation was established under the State Industrial Corporation Act No.49
of 1957 on the 1st of January 1962. The State Engineering Corporation was to function under the
Ministry of Construction & Engineering Service and provides services in civil engineering construc-
tion, mechanical and electrical engineering, architectural and engineering consultancy services,
manufacture of pre-cast components and building materials for civil engineering projects
The registered office of the State Engineering Corporation is located at No. 130, W.A.D. Ramanayake
Mawatha, Colombo 02.
1.2 Significant Accounting Policies
1.2. (A) Accountng Conventon
1.2. (B) Taxation
1.3 Assets and Basis of their valuation
1.3. (A) Property Plant & Equipment
The Financial Statements are prepared on the historical cost convention and in accordance
with generally accepted Accounting principals and Accounting standards laid down by the
institute of Chartered Accountants of Sri Lanka.
The Accounting Policies have been consistently applied by the Corporation with those used
in the previous year.
Property, Plant and Equipment are recorded at cost of purchase or cost together with any
incidental expenses thereon.
Property, Plant and Equipment are stated at cost less accumulated depreciation.

It is planned to carry out a valuation of all fixed assets during 2011.
The charge for depreciation on assets commences in the year of purchase In accordance
with the accounting standards, Depreciation is provided proportionally during the year of
purchase and the year of disposal. Depreciation is calculated on a straight line basis over
the estimated useful life of the assets.
Notes to the Financial Statements & Accountng Policies
General
(i)
(i)
(ii)
(iii)
(iv)
(ii)
1.4 Income Statement
1.4. (A) Revenue Recogniton
1.5 Liabilities & Provisions
1.5. (A) Retrement Benefts
1.3. (B) Inventories
1.3. (c) Debtors and Receivable
1.4. (B) Constructon Contracts
1.4. (C) Dividend Income
Capital Work in Progress - Represents the cost incurred during the year on proposed extension of
eighth foor (south wing) of Head Ofce Building.
Stock of raw materials and spare parts are valued at costless provision for slow moving, idle and
obsolete stocks on a frst in frst out basis.
Finished goods are valued at lower of cost or net realizable value.
Debtors and receivables are stated at amounts, estmated to be realized. Provision has been made
for bad and doubtul debts.
The revenue of the corporatons is recognized on an accrual basis and matched with the associ-
ated cost and expenses for the period.
The depreciaton percentages for the year are given below.
Assets Depreciaton %
Buildings 2.5%
Plant & Machinery 20%
Furniture & Fixtures 10%
Motor Vehicles 20%
Ofce Equipment 20%
Computer-Hardware & Sofware 20%
Free Hold Land is not depreciated.
Revenue &proft from the ongoing constructon Contacts is recognized according to SLAS 13 on
the percentage of completon method. The stage of completon is determined on the basis of
actual expenses incurred. For this purpose the budgeted contract proft is assumed to be 11% in
general.
Provision for Retrement Gratuites has been made from the frst year of the service of employees.
However, according to the payment of gratuity Act No. 12 of 1983 the liability for gratuity to an
employee arises only on completon of 5 years of contnuous service.
No Dividend income from shares was received during the year 2010.
(V)
(i)
(Vi)
1.6 Post Balance Sheet Events
1.7 Contingent Liabilities
1.8 Comparative Figures
1.9 Cash Flow Statement
2.0 Due from & Due to Customers
2.1 Disclosure of the Adjustments of the pervious year
Sine a sum of Rs 20 million related to the previous year has been deducted from the brought forward
proft, the impact on the proft as at 31.12.2009 could be stated as follows.
Proft for the year ended on 31st December 2009 Rs.274,609,123
Less. the adjustment of the previous year (Rs.20,404,197)
Adjusted Proft as at 31.12.2009 Rs.254,204,926
All material post Balance sheet events have been considered and where necessary adjustment
has been made in the fnancial statements.
As per the cabinet paper Cp/11/0089/517/004 dated 26/01/2011, all the assets and liabilites of
the Natonal Equipment and Machinery Organisaton (NEMO) have been taken over by the State
Engineering Corporaton of Sri Lanka.
16 court cases have been fled against the SEC as at 31.12.2010 (a list of the cases are given in note
2e-2g). If the court cases will have been defeated, the loss for the corporaton will be Rs.17,027,361.00
Comparatve fgures applicable for the previous year have been stated to facilitate comparison.
The Cash Flow Statement has been prepared by using the Indirect Method. Cash and Cash equiva-
lent comprises of net cash balance with banks and other Short Term Funds held by the Banks.
Due from Customers and Due to customers are shown separately in accounts under Current Assets
and Current Liabilites.
2. Property Plant & Equipment (a) Free Hold Assets:
Land & Build-
ings
Plant &Ma-
chinery
Computer
Hard/Sof
ware
Furniture&
Fitngs
Ofce Equip-
ment
Motor
Vehicles
Total
(RS.)
Cost as at
01.01.2010
79,367,626 212,284,113 30,895,910 6,835,985 23,725,893 56,729,030 409,838,557
Additons
during the
period
508,597 33,623,712 5,800,643 10,826,916 4,791,222 - 55,551,090
Adjustment - - - - -
Cost as at
31.12.2010
79,876,223.40 245,907,825 36,696,553 17,662,901 28,517,115 56,729,030 465,389,647
Less - Depre-
ciaton
Balance
as at
01.01.2010
32,985,203 183,216,312 21,455,361 3,045,237 17,695,949 55,109,804 313,507,866
Transferred
from L.H.
Assets.
- - - - - -
Deprecia-
ton for the
period
1,817,174 14,787,564 4,317,413 699,160 2,682,293 458,323 24,761,927
Depreciaton
on disposal
- - - - - - -
34,802,377 198,003,876 25,772,774 3,744,397 20,378,242 55,568,127 338,269,793
Net
Value as at
31.12.2010
45,073,847 47,903,948.97 10,923,779 13,918,504 8,138,873 1,160,902 127,119,855
Net
Value as at
31.12.2009
46,382,424 29,067,801 9,440,549 3,790,748 6,029,944 1,619,225 96,330,691
b) Leased Hold Assets:
Cost as at
01.01.2010

- 25,885,500

-

-

- 17,704,348 43,589,848
Additons
during the
period
- 8,400,000 - - - 13,992,286 22,392,286
Cost as at
31.12.2010
- 34,285,500 - - - 31,696,634 65,982,134
Less - Depreciaton
Balance
as at
01.01.2010

- 14,477,657

-

-

- 12,627,584 27,105,241
Transferred
to F.H.Assets.
- - - - - - -
Deprecia-
ton for the
period

- 5,751,380

-

-

- 4,695,625 10,447,005
Depreciaton
on disposal

-

-

-

-

-

-

-
20,229,037 - - - 17,323,209 37,552,246
Net
Value as at
31.12.2010

- 14,056,463

-

-

- 14,373,425 28,429,888
Net Value as at
31.12.2009

- 11,407,843

-

-

- 5,076,764 16,484,607
Net Value as at
31.12.2010
45,073,847 61,960,412 10,923,779 13,918,504 8,138,873 15,534,327 155,549,743
Net Value as at
31.12.2009
46,382,424 40,475,644 9,440,549 3,790,748 6,029,944 6,695,990 112,815,299
Disclosure of Leased Assets
Details of leased assets are not given with the Accounts and they are given below
Details of leased assets
Opening Balance as at 01/01/2010
Cost Rs.
43,589,848.00
CTCDLE1000793500 Single Cab 1,361,143.00
CTCDLE0900806100 Bachoe Loader 8,400,000.00
22,392,287.00
22,392,287.00
65,982,135.00
2010 -Actual Rs. 2009 -Actual Rs.
3 Investment in Shares
12,000 Shares at Rs.100.00 in
Housing Development-
1,200,000 1,200,000
Finance Corporaton of Sri Lanka Ltd. 1,200,000 1,200,000
4 Capital Work in Progress (Part of the SEC H/O
Building)
6,038,110 6,038,110
5 Inventories
Materials 300,537,300 204,385,316
Finished Goods 122,295,918 97,737,072
Spare parts - -
422,833,218 302,122,388
Less: Provisions for Slow Moving & Obsolete
items
21,217,216 21,217,216
401,616,002 280,905,172
6 Trade Debtors
Constructon Group 1,800,921,838 1,259,536,741
Mechanical & Electrical Group 84,811,803 89,272,421
Constructon Components Group 594,650,614 212,165,510
Consultancy Group 870,141,807 507,064,654
Services 18,229,869 14,819,397
Central Workshop 28,876,739 48,539,749
3,397,632,670 2,131,398,472
Less:
G.S.T / V A.T 484,689,536 275,652,288
N.S.L 3,541,485 3,541,485
Provision for Bad & Doubtul Debts 293,629,107 274,271,162
2,615,772,542 1,577,933,537
7 Retenton / T.C. 741,493,365 541,221,905
8 Other Debtors & Receivables
Other Debtors
Foreign Purchase Control A/C 18,523,918 16,582
L/C 's Opended on Behalf of customer 51,354,760
Receivable Income from Overhead Bridge 664,836 611,100
Interest in Suspense - ( Leasing) 7,845,884 1,165,110
Salaries & Wages Rounding Of Recoveries 5,251 1,707
Withholding Tax 70,890,121 93,649,459
Prepayments 1,939,391 2,011,012
W.H.T on Interest Income 5,907,715 5,306,452
Naton Building Tax 13,265,476 3,303,376
Cash Lost ( Recoverable) at Seruwavila Site 805,938 805,938
Funds Transfer 14,754,231 2,104,385
Receivable from Employees 20,410 20,410
Interest on Bank Deposits 2,392,876 767,955
Economic Service Tax Recoverable 19,167,364 14,446,327
Natonal Buddhist Centre - Pallekale - -
Receivable from Site No 1576 - (UDA) 5,356,353 5,356,353
Investment in SEC (Quarter) LLC 5,958,715 5,966,738
Receivable from SEC (Qatar ) LLC 838,355 838,355
L/C Margin Account 1,810,963 1,810,963
Inter Group Current Debtors 103,082,193 103,082,193
REPO Interest Receivable 89,423
Welfare Advance 500,000 -
325,084,749 241,353,838
Advances
Wages Advances 61,730 55,740
Advance Payments to Suppliers 40,286,942 3,864,577
Advances for Services 5,966,611 2,427,266
Salary Advances 5,500 5,500
Advances to Staf 121,500 251,990
Festval Advances to Employees 1,834,694 1,715,994
Distress Loans 6,182,533 3,200,954
Cheque with Order Advances
Less: Provision for C.W.O. Advances 167,120,857 88,014,032
Special Cash Advances 4,560,327 528,153
Travelling Advances (3,136) (50,536)
Advance Account pallekale 64,395 -
Mobilizaton Advances to Sub Contractors 212,339,974 101,855,397
Special Cash Advances (Sal.& Wages) 69,045 240,200
Traveling Imprest 16,429 10,000
Labour Sub Contract Advances 142,756,705 102,958,795
Purchase Cash / Spare Parts Imprests 1,445,859 63,960
Wages Piece Rate Imprest 16,150 16,150
Co-op Society Loan - 500,000
582,846,114 305,658,172
TOTAL 907,930,863 547,012,010
9 Deposits
Refundable Deposits 10,994,916 8,553,754
10 Due from Customers 418,909,383 292,602,550
11 Fixed Deposits at Bank 17,636,174 16,883,505
12 Cash & Cash Equivalents
Cash at Bank and in Hand 75,189,546 20,688,616
Fixed Deposits at Bank - Short tme 171,038,073 258,914,830
Savings at Bank 2,212,711 2,117,295
R.E.P.O 85,000,000 261,100,000
333,440,330 542,820,741
13 Share Capital
Authorized
Contributon by the Government 70,000,000 70,000,000
Voted Capital
Contributon by the Government 70,000,000 70,000,000
14 Reserves
(a) Capital Reserves
Machinary Gifed From U.S.S.R 5,082,350 5,082,350
Capital Gain on N'pita Shifing 22,656,456 22,656,456
27,738,806 27,738,806
(b) General Reserves
Machinary Repair Funds 2,635,162 2,635,162
Bonus Shares Issued - H.D.F.C. 1,000,000 1,000,000
3,635,162 3,635,162
TOTAL 31,373,968 31,373,968
2010 - Actual Rs. 2009 - Actual Rs.
15 Accumulated Proft / (Loss)
Balance Brought Forward 319,889,739 45,280,616
Previous Year Adjustments (20,404,197) -
Net Proft/(Loss) for the Year 86,491,181 274,609,123
Balance Carried Forward 385,976,724 319,889,739
16 Long Term Borrowings
Treasury Loans 30,800,000 30,000,000
17 Deferred Liabilites
Retrement Beneft Obligatons 247,918,919 245,325,085
18 Bank Overdraf
People's Bank 106,494,507 42,732,102
Bank of Ceylon 3,506,107 23,784,282
110,000,614 66,516,384
19 Interest on Treasury Loans 4,006,293 4,006,293
20 Bill Discount Facilites - 49,228,698
21 Trade Creditors 120,956,415 58,887,828
Sub Contractors
Sub Contracts 125,448,700 51,180,243
Sub Contract Retenton 186,425,561 121,779,021
Sub Contract Accruals 190,254,254 159,978,794
502,128,515 332,938,058
U.D.A
U.D.A. Control A/C 22,512,074 22,512,074
Ministry Pool Vehicles 37,834,609 42,015,356
TOTAL 683,431,614 456,353,316
22 Other Creditors & Payables
Other Creditors
Treasury Loans - 800,000
Payee Tax 1,068,753 1,016,193
Specifed Fees Payable - WHT 2,026,594 98,771
Acquisiton of Assets - B.M.M.C. 1,741,893 1,741,893
Remitances on Salaries 260,811 3,805,857
Final Payments to Staf 2,612,167 1,095,787
Unclaimed Wages & Casual O.T. 633,585 385,544
Unclaimed Salaries & O.T. 2,630,977 1,715,494
Unclaimed Car Mileage & Subsistence 3,437 3,437
Tender Deposits 1,467,661 1,580,574
Securites Deposits 634,500 584,500
Other Deposits 55,000 55,000
Payable to I.R.D 1,289,114 1,190,864
Building Department 549,640 549,640
Final Payments to Casual Employees - 184,436
2010 - Actual Rs. 2009 - Actual Rs.
Dalada Maligawa Control A/C 993,816 993,816
Buddha Sasana My/ Control A/C. 6,472,546 6,472,546
G.S.T / VAT (87,742,509) 122,067,065
N.S.L 500,542 500,542
Debtors of on Account Payment 315,439,088 95,605,081
Volunteer Retrement Scheme -
(Treasury)
20,278,812 20,302,292
Leasing - People's Leasing Co. Ltd 24,503,909 5,842,798
Inter Group Creditors 93,143,107 101,692,388
Cancel Cheque A/C 42,860 57,482
Pre Income 3,250 565,264
N.B.T. 4,538,878 1,153,334
393,148,432 370,060,598
Provisions & Accrued Expenses
Constructon Group 245,383,189 8,858,692
Consultancy Group 197,789,260 -
Services 2,717,612 3,254,095
Accrual - Sundry - -
Stamp Fees 126,640 228,215
Death Donatons - -
E.P.F. 8,212,944 7,412,892
Surcharges on Delayed EPF
E.T.F 1,116,355 1,027,507
Audit Fees 8,903,585 8,553,585
Provision for Budgetary Allowance 10,210,582 17,511,262
Tax In Default 3,739,236 3,739,236
Tax 9,500,000 9,500,000
Payment of EPF Arrears - Before 1984 7,515,874 8,151,034
Salaries 98,843 911,815
Overtme 17,761,160 12,446,220
Wages 3,218,636 1,882,878
Provision for Medical Leave Bonus 3,619,136 3,619,136
Provision for Completed Constructon
Projects
1,916,238 6,030,421
Provision for Labour Subcontract Advances 9,614,881 9,614,881
Ketharama Refreshment A/C (150,000) -
Provision for E.S.T 23,283,928 9,894,068
Provision for Income Tax 46,572,175 38,456,493
Contngent Liabilites - -
898,287,019 160,459,704
-
TOTAL 1,291,435,451 530,520,302
23 Due To Customers 1,293,651,840 973,343,424
24 Mobilizaton Advances 1,461,986,005 1,151,429,373
25 Revenue
Constructon Components Group 1,769,779,520 664,649,635
Consultancy Group 1,260,918,503 631,440,379
6,315,404,231 3,987,770,956
Inter Group Transactons
Constructon Group 43,786,647
Consultancy Group 89,284,850 6,244,147
393,644,087 193,287,318
Net Revenue
Constructon Components Group 1,659,970,192 610,392,537
Consultancy Group 1,171,633,653 625,196,232
5,921,760,145 3,794,483,638
26 Constructon Group
Income Statement for the period ended on
31.12.2010
Group Revenue 26.1 3,101,829,140 2,417,648,672

Operatng Proft/ (Loss)
Ongoing Projects 26.2 198,610,248 260,576,881
Plant Hiring - Maligawata 26.3 1,687,576 2,307,376
Aluminum Factory - Ratmalana 26.4 (2,864,650) 19,446,920
Special Project - IRD 26.5 - -
197,433,174 282,331,177
Add - Other Income
Group Income 15,551,840 19,928,800
Ministry Pool Management Fees 64,300
Less: Group Overheads 116,640,429 98,343,497
Ministry Pool Management Fees 61,313
Net Operatng Proft / ( Loss ) 96,347,571 203,916,480

Less: Administratve Expenses 92,807,269 70,684,610
Group Proft / (Loss ) 3,540,303 133,231,870
Less: Provision for Bad & Doubtul Debts 15,825,656
Net Group Proft / ( Loss) 3,540,303 117,406,214
27 Mechanical & Electrical Group Operatng
Statement for the period ended on 31.12.2010
Group Revenue 27.1 182,877,069 274,032,271
Operatng Proft / ( Loss )
Operaton - Peliyagoda 27.2 574,154 4,483,689
Central Workshop - Peliyagoda 27.3 (16,250,137) 4,778,477
Other Projects 27.4 3,135,980 22,028,729
Workshop - Ratmalana 27.5 (26,048,071) (3,473,015)
Dolamite Processing Yard-Matale 27.6 (4,877,964) (4,676,566)
Ongoing Projects 27.7 (4,961,792) 11,965,506
(48,427,830) 35,106,820
Add: Other Income 1,322,710
(48,427,830) 36,429,530
Net Operatng Proft / (Loss) (59,764,542) 17,563,833
Group Proft /(Loss) (73,586,901) 7,036,338
Less: Provision for bad & doubtul debts 3,182,199
Net Group Proft / ( Loss ) (73,586,901) 3,854,139
28 Constructon Components Group
Income Statement - for the period ended on
31.12.2010
Group Revenue 28.1 1,769,779,520 664,649,635
Operatng Proft /(Loss)
Precast Yard - Ekala 28.2 37,569,854 1,164,181
Precast Yard - Ratmalana 28.3 (2,947,216) (9,978,909)
Precast Yard - Peliyagoda 28.4 (9,235,998) (5,750,285)
Carpentry & Bricks Yard-Dankotuwa 28.5 (3,772,500) (1,625,325)
Other Projects 28.6 (2,940,151) 45,131,849
Concrete Sleepers Factory 28.7 29,054,588 22,847,546
Ongoing Projects 28.8 39,922,682 0
87,651,260 51,789,057
Add: Other Income 11,674,534 2,427,920
Net Operatng Proft /(Loss) 77,101,797 32,985,001
Group Proft / (Loss) 43,533,211 7,418,227
Less:Provision for doubtul Debts 6,187,968
Net Group Proft / ( Loss) 43,533,211 1,230,259
29 Consultancy Group Income Statement for
period ended on - 31.12.2010
Revenue
Fees - Internal 89,284,850
Fees - External 138,620,771 182,754,074
IRD Project* 805,789,182 448,686,305
IIFA Project 225,786,806
Other Income 1,436,894
1,260,918,503 631,440,379
Less: Expenses
Salaries, Wages & Personnel Emolument 87,226,967 79,819,689
Sub Contract - Other Projects 2,698,341
Consultancy Fees -
Printng & Statonery 4,062,424 3,006,253
Electricity, Water & Telephone 365,397 746,929
Transport 4,087,633 3,655,937
Depreciaton 2,430,848 2,519,291
IRD Expenses* 712,851,561
IIFA Expenses 214,385,268
Other Expenses 26,314,733 4,833,670
1,054,423,173 94,581,769
Operatng Proft 206,495,330 132,858,150
Add- other income
Special Projects 43,008,106
Others 1,557,145
Net Operatng Proft 177,423,401
Group proft 149,231,271 133,809,493
Less: Provision for Bad & Doubtul Debts 4,316,903
Net Group Proft / (Loss) 149,231,271 129,492,590
*IRD proft for the year =92,937,621/=
30 Administratve Expenses
Emoluments 101,671,680 83,326,755
Welfare 1,485,689 1,572,707
Insurance 993,787 1,072,026
Fuel & Lubricant /Materials 9,830,003 10,027,390
Repairs & Maintenance 5,328,712 4,783,164
Travelling & Subsistance 1,211,675 2,526,893
Foreign Travels 1,892,429
Tranport & Hire Charges 1,318,585 195,880
Sub Contact Labour 203,713 58,179
Professional Charges 4,574,577
Bank Charges & Commission 1,746,773 177,020
Services 5,118,326 5,723,874
Printng & Statonery 1,956,107 2,583,228
Rates & Taxes 6,913,282 15,332,962
Electricity , Water & Telephone 10,858,816 9,692,868
Depreciaton 6,752,043 7,072,091
Rs. 2010 -Actual Rs. 2009 -Actual
Advertsing 5,077,486 3,975,392
Local Consultancy Fees 437,925
Audit Fees 734,000
Debit Tax 1,745,838
Training Fees & Subscripton 654,964 488,464
Newspaper 174,550 154,200
Postages & Stamp Fees 295,524 1,952,195
Business Promoton 1,843,100
Other Expenses 5,469,232
Social Service Tax 274,885
Sports & Recreaton 32,969
167,720,243
Less: Over Pro.of EPF Write Back - (17,081,938)
197,205,631 150,638,305
31 Provision for Bad & Doubtul Debts
Constructon - 15,825,656
Mechanical & Electrical - 3,182,200
Constructon Components - 6,187,968
Consultancy - 4,316,903
19,357,945 29,512,727
32 Other Income
Rent 7,208,525 5,938,265
Circuit Bungalow Room Charges 136,620
Sales of Fixed Assets -
Tender Fees 569,545
Sales of Scrap Items 12,005,489
Interest & Other Income from Employees 101,402
Dividend Income -
Fine & Surcharges 15,024
Income from Scholarship Bonds -
Rent Overhead Bridge 569,104
Advertsing Income 471,429
Sundry Income 6,816,623 7,012,486
14,025,148 26,819,364
33 Interest Income
F.D Interest 8,223,026 31,397,840
Savings Interest 120,698
REPO Interest 7,455,245 2,744,514
15,678,270 34,263,052
34 Interest Expenses
O.D. Interest 256,643 62,337
Loan Interest - -
Treasury Loan Interest - 128,000
256,643 190,337
Notes Notes

Annual 2010 Report

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Annual Report 2010

Ministry of Constructon, Engineering Services, Housing & Common Amenites

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