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C o n t e n t s

Corporate Information Chairmans Statement Report on the Affairs of the Company Directors Responsibility for the Preparation of the Financial Statements The Board of Directors Corporate Governance Compliance Table Corporate Governance Remuneration & Audit Committee Report Auditors Report Balance Sheet Income Statement Statement of Changes in Equity Cash Flow Statement Accounting Policies Note to the Accounts Shareholders and Investor Information Ten Year Financial Review Glossary of Financial Terminology Notice of Meeting 2 3-4 5-6 7 8-9 10 11 12 13 14 15 16 17-21 22-30 31 32 33 34

Annual Report 2008/2009

CoRpoRAte Information
the Board of Directors Vijay Shah Chairman M.R. Prelis ( Up to 30/07/2008) Dr. C.T.S.B Perera N. Santhanam R.M.S. Fernando Sanjay Tiwari CEO / Executive Director Audit Committee Vijay Shah Chairman Dr. C.T.S.B Perera R.M.S Fernando Remuneration Committee Vijay Shah Chairman Dr. C.T.S.B Perera R.M.S Fernando senior Management team Sanjay Tiwari CEO / Executive Director U.P. Hettige General Manager T.P. Sheriffdeen General Manager (Marketing) Niloni Boteju Financial Controller A.K.M Fowzin Head of HR Palitha Priyanandana Senior Manager (Supply Chain) Company name The Company has changed the name from CEYLON GLASS COMPANY PLC to PIRAMAL GLASS CEYLON PLC with effect from 26th August 2008 (in accordance with Section 8 of Companies Act No. 07 of 2007) Company number PQ 190 Registered office 148, Maligawa Road, Borupana, Ratmalana Telephone: +94 112 635 481 -83 Fax:+94 112 635 484 E-mail: pgc.info@piramal.com Web: www.piramalglassceylon.com Factory Wagawatte Road, Poruwadanda, Horana. Telephone: +94 344 938 965 -67 Fax:+94 342 258120 Marawila Road Nattandiya Telephone: +94 322 254 242 Fax:+94 322 255 193 Auditors Statutory Messrs.Ernst & Young Chartered Accountants P.O.Box 101, Colombo 10 Internal Messrs.S.J.M.S. Associates No.04, Castle Lane, Colombo 04. Bankers Bank of Ceylon Citi Bank, N.A Commercial Bank of Ceylon PLC Development Finance Corporation of Ceylon PLC Hatton National Bank PLC Peoples Bank Standard Chartered Bank Sampath Bank PLC secretaries Former ; Corporate Services Limited 216, De Saram Place , Colombo 10 Telephone: +94 114 718 221 -4 Up to 30/07/2008 Present ; Mrs.Sagarika Jayasundera (Attorney-at-Law) 148, Maligawa Road, Borupana, Ratmalana Telephone: +94 112 635 481 -83 With effect from 31/07/2008 Registrars Former ; Vanik Corporate Services Limited No.54, Kirulapone Avenue, Colombo 05 Telephone: +94 112 513 880 Up to 30/11/2008 Present ; P.W Corporate Secretarial (Pvt) Ltd No.3/17, Kynsey Road, Colombo 08 Telephone: +94 114 897 711 44 With effect from 01/12/2008 Legal Advisors Messrs.F.J. & G. de Saram 216, De Saram Place , Colombo 10

Annual Report 2008/2009

ChAiRMAns Statement
per day to 100 tons per day and enabling two lines to manufacture these bottles as against one earlier. With more than doubling the Companys manufacturing capacity, the Company will make a major thrust into exports in addition to servicing fully the domestic demand. This will be beneficial to the company as well as bring in much needed foreign exchange into the country. performance Review Once again your Company has broken the record of earlier years by achieving a Sales of LKR 2936 Million as against LKR 2014 Million for the year ended 31st Dear Shareholder, The Financial Year ending March, 2009 has been a very turbulent year in terms of the global economy environment with clouds of recession looming above all our markets. There has been extreme volatility in fuel and other input prices as well as some compression of demand in the domestic market due to the general weak economic conditions in the country. As against this backdrop, your Company has fully completed the expansion of the new facility initiated last year. As you are all aware, we commenced production in our new relocated factory at Horana in the month of December, 2007 and by the financial year end 2008 we had four lines in operation. We commenced, as scheduled, the fifth manufacturing line in July 2008 thereby increasing our draw from average of 150 tons per day to 200 tons per day. The last phase of the project was completed in November, 2008 by installing the boosting transformer which helped us reach a maximum draw of 250 tons per day. The fifth line we have installed has a unique feature of making bottles in triple gob which helps the Company to make lightweight smaller bottles with increased speed. As you are aware, your Company has a unique capability of making coloured bottles through Forehar th colouring, perhaps the only one in Asia, for which specialty bottles, has been increased from 40 tons With the full year impact of Interest cost and incremental impact of AWDR increasing by 4.5% and AWPLR increasing by 7% as compared to 2007 rates, the As mentioned earlier, this was a year of turbulence and volatility across global markets particularly with respect to input costs. During the year Gas prices went up by a further 5% , Furnace Oil prices increased by 17% and Diesel price went up by 40%. These prices stabilised to an extent only in the 4th quarter of the financial year. The CEB unit rate went up by 14% in the month of November 2008, which also had a substantial impact on the energy cost. It is not only the energy which has impacted cost of production but also the substantial increase in all Raw Materials, Packing Materials and transport cost. The full potential of the furnace i.e draw of maximum 250 tons glass per day was reaped only during the 4th quarter of the Financial year as the remaining work of the Expansion Project was completed by the end of the 3rd quarter of the Financial year. March 2008, reflecting a growth of 46%. The company has demonstrated that it can successfully address the global markets by achieving an encouraging growth of around 111% in the export sales as against the previous year. The Company achieved an Export sales of LKR 424 Million as against LKR 201 Million for the year ended 31st March 2008

Annual Report 2008/2009

ChAiRMAns Statement
interest costs rose from LKR 163 Mil to LKR 659 Mil for the year. The depreciation went up to LKR 330 Mil from LKR 139 Mil with the full capitalization of the Horana Project. In spite of the cost escalation, the Company could maintain its Gross Profit margin at 20% this year as against 22% of previous year mainly due to higher volume of production. Looking Ahead The Management is ver y positive about the future of the Company. With the entire infrastructure now in place, the Company will now be able to maintain its production and will be fully geared to service the International market with the surplus capacity. The additional tonnage available would be more aggressively addressed towards global markets during the year. The focus of the Company will be towards specialized liquor and beverage bottles through leveraging of colouring forehearth facility for neighboring countries like India, Australia and South Africa, particularly for packaging boutique wines. Whilst ensur ing the capacity will be utilized, the Company will migrate and focus towards higher value exports and coloured bottle segment in the near future. The performance of our company, during the year, could not have been achieved without the untiring efforts, dedication and commitment of our employees. I take this opportunity to place on record my gratitude to them. I also thank our valued customers for their continuing patronage and support. I also wish to convey my gratitude to my colleagues on the Board of Directors and the management team for their valuable contribution during the financial year. I would fail in my duty, If I do not thank you, our shareholders, for your confidence in us. I particularly like to thank the Piramal Glass Indian Corporate project team which has helped us in the management and execution of the entire capital expenditure project within a very tight time schedule. Vijay shah Chairman 28th April 2009 Mr. Vijay Shah, Chairman of the company is the Managing Director of Piramal Glass Limited. Transactions with Piramal Glass Ltd are disclosed in Note 27.1. I take this opportunity to thank the various departments of the Government of Sri Lanka, Board of Investment, Consortium Banks and other lending Banks, institutions and clients that extended assistance to Piramal Glass and encouraged us to make additional investments in the Company. Their wealth of experience in managing such large investment project across the Group has been very valuable for us.

Annual Report 2008/2009

RepoRt on the AFFAiRs of the Company


to the shareholders The Board of Directors have pleasure in presenting the 54th Annual Report and the Audited Financial Statements of the Company for the year ended 31st March 2009. ReVieW oF YeAR The Chairmans statement describes in brief the Companys affairs and the performance of the Company during the year and also mentions the events subsequent to the balance sheet date. pRinCipAL ACtiVitY Principal activity of the Company is the manufacture and sale of Glass Containers. The Company owns Freehold Land at Ratmalana (21 acres) and Nattandiya (54 acres) and Leasehold Land at Horana (25 acres) and Nattandiya (9 acres). CURRenCY All figures appearing in the accounts are in Sri Lankan Rupees and has been denoted as LKR. FinAnCiAL ResULts Net Turnover Profit before Interest, Depreciation & Tax (PBIDT) Interest Depreciation Profit/(Loss) before Tax Income Tax (Expense)/Reversal Profit after Tax & before Accelerated Depreciation Accelerated Depreciation on Property, Plant & Equipment Profit/(Loss) after Tax 009 LKR 000 2,936,155 727,779 (658,698) (330,330) (261,249) 314 (260,935) (260,935) 008 LKR 000 2,014,128 361,702 (162,932) (138,758) 60,012 (14,031) 45,981 (10,839) 35,142

sALes hiGhLiGhts The year under review ended with a growth of 46% as against the previous year. Of the total turnover of the Company exports contributed up to 14% as against 10% in the previous year. The Company has shown a substantial growth of 111% in the Export Turnover. The export turn over was 424Mn as against 201Mn of previous year. This growth is the reflection of the initial benefits realised by the Company from its strategy of focusing on International Market along with increasing its product range in the domestic market as per the trend and requirements. MAnUFACtURinG inFRAstRUCtURe The new factory at Horana commenced its operations on 10th December 2007. The new furnace has a designed capacity of 205 tons which can go up to 250 tons and five production lines. eMpLoYMent The Company employed a total of 634 persons directly and indirectly as at 31st March 2009. (2008 was 475) CApitAL eXpenDitURe AnD inVestMents The Company invested a total of LKR 656,590,656/- during this financial year and LKR 3,274,126,321/- FY 2008. The capital commitments as at the balance sheet date are disclosed in Note 23.1 to the Accounts. stAteD CApitAL The Stated capital as at the end of the year was LKR 1,526,407,485/-, consisting of 950,086,080 number of Ordinary Shares. shARe hoLDinGs There were 11,742 registered shareholders as at 31st March 2009, and the distribution of shares is indicated on page 31. the post BALAnCe sheet eVents The Post Balance Sheet events are disclosed in Note 25 to the Financial Statements. the BoARD oF DiReCtoRs Vijay Shah Chairman M.R. Prelis (Resigned on 30/07/2008) Dr. C.T.S.B. Perera N.Santhanam R.M.S. Fernando Sanjay Tiwari CEO / Executive Director

Annual Report 2008/2009

RepoRt on the AFFAiRs of the Company


AppointMent oF neW DiReCtoR Nil peRsons Who CeAseD to Be DiReCtoRs Mr. M.R. Prelis has resigned as Director during this financial year. DiReCtoRs inteRest ReGisteR The Directors have made declarations as provided for in section 192 (2) of the Companies Act No. 7 of 2007.The related entries were made in the interests register during the year under review. The related party disclosures are referred to in Note 26 to the Financial Statements. Mr. Vijay Shah, Chairman of the Company is the Managing Director of Piramal Glass Ltd. The share ownership of directors is indicated below. DiReCtoRs shARehoLDinGs The Directors and their spouses share holdings as at 31st March are as follows: Mr.M.R.Prelis Dr. C.T.S.B.Perera 009 10,000 (Resigned) 50,000 008 10,000 50,000

DiReCtoRs eMoLUMents The remunerations and other benefits made to the Directors during the year are disclosed in Note 26.3 DonAtions The donations made by the Company during the year are disclosed in Note 21 to the Account. ResiGnAtion oF seCRetARies Corporate Services Limited resigned as secretaries of the company with effect from 30th July 2008. AppointMent oF neW seCRetARY Ms. Sagarika Jayasundera (Attorney-at-Law) was appointed as the new Company Secretary with effect from 31st July 2008. ResiGnAtion oF ReGistRARs Vanik Corporate Services Limited resigned as registrars of the company with effect from 30th November 2008. AppointMent oF neW ReGistRARs P W Corporate Secretarial (Pvt) Ltd was appointed as new Comapany Registrars with effect from 1st December 2008. AUDitoRs The Fianancial Statements have been audited by Messrs. Ernst & Young, Chartered Accountants of Sri Lanka, who have indicated their willingness to continue in office and a resolution relating to their reappointment, will be proposed at the Annual General Meeting. Audit fees and expenses to Messrs. Ernst & Young for the FY 09 is LKR 613,931/(FY 08 LKR 539,500/-) and fees and expenses for taxation services is LKR 249,888/- (2008 LKR 390,360/-). As far as the Directors are aware, the auditors do not have any other relationship with the Company. For and on behalf of the Board.

Sgd. Mr. Sanjay Tiwari CEO/Executive Director 22nd May 2009

Sgd. Dr. C.T.S.B. Perera Director

Sgd. Ms. Sagarika Jayasundera Company Secretary

Annual Report 2008/2009

DiReCtoRs Responsibility for the Preparation of Financial Statements


The responsibility of the Directors, in relation to the Financial Statements, is set out in the following statement. The responsibility of the Auditors, in relation to the Financial Statements, is set out in the Auditors Report on page 12 of the Report. The external auditors. Messrs Ernst & Young, appointed in accordance with the resolution passed at the last Annual General Meeting, were provided with every opportunity to undertake whatever inspections they consider appropriate to enable them to form their opinion on the financial statements. The Financial Statement for the year 2008/2009 prepared and presented in this report are consistent with the underlying books of accounts and are in conformity with the requirements of the Sri Lanka Accounting Standards, Companies Act No. 7 of 2007, Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 and the Listing Rules of the Colombo Stock Exchange. Under section 151 (1) of the Companies Act No. 7 of 2007, the Directors of the Company have responsibility for ensuring that the Company keeps proper books of accounts of all the transactions and prepares financial statements that give a true and fair view of the state of affairs of the Company and the profit and loss for the year. The Directors consider that these financial statements have been prepared using appropriate accounting policies, applied consistently, and supported by reasonable and prudent judgments and estimates and is in compliance with applicable Sri Lanka Accounting Standards and provide the information required by the Companies Act, as relevant. Any change to accounting policies and reasons for such change, is disclosed in the Notes to the Financial Statements. The Directors are responsible for keeping proper accounting records, and to take reasonable steps as far as practicable to ensure the accuracy and reliability of accounting records, to enable the preparation of financial statements. The Directors have a general responsibility to take reasonable steps to safeguard the assets of the Company. In discharging this responsibility the Directors have instituted a system of internal controls and a system for monitoring its effectiveness. The system of controls provide reasonable and not absolute assurance of safeguarding of Companys assets, maintenance of proper accounting records and the reliability of financial information. The Directors believe, after reviewing the financial position and the cash flow of the Company, that the Company has adequate resources to continue in operation for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. By order of the Board SAGARIKA JAYASUNDERA Company Secretary Piramal Glass Ceylon PLC 12th May 2009.

Annual Report 2008/2009

the BoARD of Directors


MR. ViJAY shAh Chairman Non Executive, Non Independent Director Appointed to the Board in the year 1999. Took over as Chairman of Piramal Glass Ceylon PLC (formerly known as Ceylon Glass Company) since 2002. Joined Piramal Group in 1988. Since September 1992 he took over as Managing Director of Piramal Glass. Since August 99, Mr. Shah was assigned responsibility as Executive Director and Chief Operating Officer of Nicholas Piramal India Limited. He was a Senior Associate at Management Structure & Systems Pvt Ltd. - a Management Consultancy organization from 1982 to 1987. Mr Shah has been instrumental in several mergers & acquisitions and consequent integration globally in the Piramal Group. He is a Director in Piramal Glass UK Ltd, Piramal Glass - USA Inc,. Allergan India Limited etc. He holds Bachelor's Degree in Commerce Rank holder and member of "The Institute of Chartered Accounts of India". Also completed Advance Management program of Harvard Business School Boston, USA in 1981 and Management Education Programme from IIM Ahmedabad in 1987.

DR. C. t. s. B. peReRA Non Executive, Independent Director Appointed to the Board of Piramal Glass Ceylon PLC (formerly known as Ceylon Glass Company) in 2003. Dr Perera has served as the Managing Director of Piramal Glass Ceylon PLC from July 1995 to March 2002. He served as first Chairman of SME Bank. Additional Director General Board of Investment, Sri Lanka. Presently serves as Managing Director of Samson Rajarata Tiles and Director on Board of many reputed Companies. He holds a PhD-CNAA - North Staffordshire UK, BSc(Hons) CNAA North Staffodshire UK , BSc University of Ceylon and Fellow of the Institute of Metal, Materials & Mining (UK), Is, BSc University of Ceylon.

MR n sAnthAnAM Non Executive, Non Independent Director Mr. N. Santhanam was appointed on the Board of Piramal Glass Ceylon PLC (formerly known as Ceylon Glass Company) in 2002. He is a Chartered Accountant by profession and has nearly 36 years of rich and varied experience in Corporate Accounts, Finance, Treasury, Taxation, Secretarial, Legal and Mergers and Acquisitions apart from gaining deep insight into general business management. Mr. Santhanam was with the Wadia Group for nearly 22 years and in 2001 joined the Ajay Piramal Group as its Chief Financial Officer. He is presently the Executive Director and Chief Operating Officer of Piramal Healthcare Limited, the flagship company of the Ajay Piramal Group. He has total responsibility of overall operations of its Healthcare Solutions, Pharma Solutions, Global Critical Care, Vitamins and Fine Chemicals and Diagnostic Equipments Businesses.

Annual Report 2008/2009

the BoARD of Directors

MR sAnJAY tiWARi CEO / Executive Director Executive, Non Independent Director Appointed to the Board of Piramal Glass Ceylon PLC (formerly known as Ceylon Glass Company) in December 2005 as CEO and Executive Director. Joined Piramal Group in June 2004 as Vice President - Finance & Commercial, heading Accounts, Finance, IT, Logistics and Supply Chain of Piramal Glass Ltd till Nov 2005. Before joining the Piramal Group worked with Zydus Cadila Healthcare Ltd and Torrent Group as CFO and General Manager Commercial for 12 years. Diversified experience in various positions in different Industries Textile, Colour Chemicals, Cables, Pharmaceuticals, Bulk Drugs and Glass. He holds a Bachelors Degree in Commerce, Fellow member of The Institute of Chartered Accountants of India, completed AFM & GMP programs from IIM Ahmedabad, Executive Management Program from University of Michigan.

MR. R. M. s. FeRnAnDo Non Executive, Independent Director Appointed to the Board of Piramal Glass Ceylon PLC (formerly known as Ceylon Glass Company) on 8th October 2007. Mr. Fernando has worked at the DFCC for 10 years and joined the National Development Bank in 1989 and was the CEO of the National Development bank from 1989-2001. He also served as the Secretary to the Ministry of Investment Promotions, Industrial Policy, and constitutional Affairs during 2002-2004. Mr. Fernando has been an international consultant and advisor to the World Bank and the Asian Development Bank and is a member of the Board of Trustees in Womens World Banking, New York. Member of Chartered Institute of Bankers, United Kingdom, Companion of the Chartered Institute of Management in UK and Chartered Institute of Management Accountants UK.

Annual Report 2008/2009

CoRpoRAte GoVeRnAnCe Compliance Table (Colombo Stock Exchange Circular No. 02/2008)
Rule no
6.1

subject
Non-Executive Directors

Applicable Requirement
At least one third of the total number of Directors should be Non-Executive Directors Two or one third of Non-Executive Directors, whichever is higher should be independent Each Non-Executive Director should submit a declaration of independence / non-independence in the prescribed format Names of independent Directors should be disclosed in the Annual Report A brief resume of each Director should be included in the Annual Report including the area of Expertise A listed company shall have a Remuneration Committee Shall comprise of Non-Executive Directors a majority of whom can be independent The Remuneration Committee shall recommend the remuneration of the Chief Executive Officer and Executive Directors The Annual Report should set out; a) Names of Directors comprising the Remuneration Committee b) Statement of Remuneration Policy

Compliance status
Compliant Compliant Compliant

Details
Four out of Five Directors are Non-Executive Directors Two of the Four Non-Executive Directors are independent Non-Executive Directors have submitted the declaration Please refer page 8-9 Please refer page 8-9

6.2 (a) Independent Directors 6.2 (b) Independent Directors

6.3 (a) Disclosure relating to Directors 6.3 (c) Disclosure relating to Directors 6.5 Remuneration Committee

Compliant Compliant

Compliant

Name of the members of the Remuneration Committee is available in page 2 Remuneration Committee consists of three Non-Executive Directors of which two are independent. Please refer the Remuneration Committee Report on page 11

6.5 (a) Composition of Remuneration Committee 6.5 (b) Functions of Remuneration Committee 6.5 (c) Disclosure in the Annual Report relating to Remuneration Committee

Compliant

Compliant

Compliant Compliant

Please refer page 2 Please refer the Remuneration Committee Report on page 11 for a brief statement of policy Please refer page 30 Names of the members of the Audit Committee is available on page 2 Audit Committee consists of three NonExecutive Directors of which two are independent. CEO / Executive Director and the Financial Controller attend by invitation Chairman of Audit Committee and one member are members of a professional accounting body Please refer page 11

c) Aggregate remuneration paid to Executive & Non-Executive Directors 6.6 Audit Committee The Company shall have a Audit Committee Shall comprise of Non-Executive Directors a majority of whom shall be independent Chief Executive Officer and the Chief Financial Officer should attend Audit Committee Meetings The Chairman of the Audit Committee or one member should be a member of a professional accounting body 6.6 (b) Audit Committee Functions Disclosure in the Annual Report relating to Audit Committee Should be as outlined in the Section 6 of the listing rules a) Names of the Directors comprising the Audit Committee b) The Audit Committee shall make a determination of the independence of the Auditors and disclose the for such determination c) The Annual Report shall contain a Report of the Audit Committee setting out the manner of Compliance of the functions

Compliant Compliant Compliant

6.6 (a) Composition of Audit Committee

Compliant Compliant

Compliant

Compliant Compliant

Please refer page 2 Please refer Audit Committee Report on page 11 Please refer Audit Committ ee Report on page 11

Compliant

0

Annual Report 2008/2009

CoRpoRAte Governance REMUNERATION COMMITTEE REPORT


The Remuneration Committee is a sub-committee of the Board. This committee consists of three members of which two are independent Directors. The Chairperson is appointed by the Board. The Committee was established for the purpose of recommending the Remuneration of the CEO /Executive Director and Senior Management. The Committee has acted within the parameters set by its terms of reference. The CEO/Executive Director attends the Committee meetings by invitation. However, he does not participate in any discussion pertaining to his remuneration. The remuneration packages linked to the individual performances are aligned with the Companys long-term strategy. The aggregrate remuneration paid to Executive and Non Executive Directors are disclosed on page 30. The members of the remuneration committee are disclosed in page 2.

AUDIT COMMITTEE REPORT


The Audit Committee is established for the purpose of assisting the Board in fulfilling their oversight responsibilities regarding the integrity of the Financial Statements, risk management, internal control and compliance with legal & regulatory requirements, review of external auditors performance & independence and internal audit functions. The Audit Committee is formally constituted as a Sub-Committee of the Main Board, to which it is accountable. Meetings of Audit Committee Five meetings were held during the year ended 31st March 2009. The Internal Auditors attended all these meetings. internal Auditors The internal audit function is outsourced to Messrs. SJMS Associates, a firm of Chartered Accountants. Internal Auditors directly submitted their findings to Audit Committee quarterly and their reports are made available to External Auditors. external Auditors The Audit committee reviews the independence and objectivity of the external auditors and conducts a formal review of effectiveness of the external audit process. The committee reviewed the non audit services and its impact on the independence of the external auditors. The audit committee has recommended to the Board of Directors that Messers Ernst & Young to be continued as the auditors for the financial year ending 31st March 2010. Audit Committee performance The Annual Performance of Audit Committee was evaluated by other members of the Board of Directors and was deemed to be satisfactory. Conclusion The Audit Committee is satisfied that the effectiveness of the organizational structure of the Company and of the implementation of the Companys accounting policies and operational controls provide reasonable assurance that the affairs of the Company are managed in accordance with Companys policies and that Companys assets are properly accounted for and adequately safeguarded. The members of the Audit Committee are disclosed on page 2. Sgd. Mr.Vijay Shah Chairman 28th April 2009.

Sgd. Mr.Vijay Shah Chairman 28th April 2009.

INDEPENDENT DIRECTORS
The independent directors are Dr. C.T.S.B. Perera and Mr. R.M.S. Fernando. The board is of the opinion that Dr.C.T.S.B. Perera is an independent director, notwithstanding the fact that he has been a director of the Company continuously for a period exceeding nine years. It has been so determined taking to account the experience, qualifications and the industry experience he possess.

Annual Report 2008/2009



AUDitoRs Report

Chartered Accountants 201 De Saram Place P.O. Box 101 Colombo 10 Sri Lanka : (0) 11,2463500 Tel Fax Gen : (0) 11 2697369 Tax : (0) 11 5578180 eysl@lk.ey.com ApAG/MRh/JJ independent Auditors' Report to the shareholders of piramal Glass Ceylon pLC (Formerly known as Ceylon Glass Company pLC) Report on the Financial statements We have audited the accompanying financial statements of Piramal Glass Ceylon PLC which comprise the balance sheet as at 31 March 2009, and the income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. Managements Responsibility for the Financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Sri Lanka Accounting Standards. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. scope of Audit and Basis of opinion Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion. opinion In our opinion, so far as appears from our examination, the Company maintained proper accounting records for the year ended 31 March 2009 and the financial statements give a true and fair view of the Companys state of affairs as at 31 March 2009 and its loss and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards. Report on other Legal and Regulatory Requirements In our opinion, these financial statements also comply with the requirements of Section 151(2) of the Companies Act No. 07 of 2007.

28th April 2009 Colombo.


Partners : A D B Talwatte FCA FCMA M P D Cooray FCA FCMA Ms. Y A De Silva ACA W R H Fernando FCA FCMA W K B S P Fernando FCA ACMA A P A Gunasekera FCA FCMA A Herath FCA D K Hulangamuwa FCA FCMA LLB (Lond) A S M Ismail FCA FCMA H M A Jayesinghe FCA FCMA Ms. G G S Manatunga ACA Ms. L C G Nanayakkara FCA FCMA B E Wijesuriya ACA ACMA



Annual Report 2008/2009

BALAnCe Sheet as at 31st March, 2009


note Assets non-Current Assets Property, Plant and Equipment Leasehold Land Investment Property Long Term Investment Current Assets Inventories Trade and Other Receivables Income Tax Receivables Cash and Bank Balances total Assets eQUitY AnD LiABiLities Capital and Reserves Stated Capital Reserves Retained Earnings total equity non-Current Liabilities Interest Bearing Loans and Borrowings Deferred Tax Liabilities Retirement Benefit Obligations 12 14 15 1,860,550,719 18,979,577 84,500,270 1,964,030,566 Current Liabilities Trade and Other Payables Dividends Payable Interest Bearing Loans and Borrowings total equity and Liabilities 16 17 12 648,777,931 10,881,132 2,126,829,565 2,786,488,629 7,026,576,977 696,709,900 10,600,998 1,240,311,616 1,947,622,514 6,351,280,447 1,846,159,193 18,979,577 78,381,791 1,943,520,561 009 LKR 4,587,154,987 25,735,070 666,130,000 261,359 5,279,281,416 8 9 13 18 758,653,163 950,963,885 20,424,232 17,254,280 1,747,295,561 7,026,576,977 008 LKR 4,158,442,273 26,783,327 703,142,457 261,359 4,888,629,416 467,614,194 954,063,961 10,880,354 30,092,522 1,462,651,031 6,351,280,447

4 5 6 7

10 11

1,526,407,485 688,535,043 61,115,255 2,276,057,783

1,526,407,485 592,677,500 341,052,387 2,460,137,372

These Financial Statements are in compliance with the requirements of the Companies Act No :07 of 2007.

Sgd: Mrs. Niloni Boteju Financial Controller The Board of Directors is responsible for the preparation and presentation of these Financial statements. Signed for and on behalf of the board by. Sgd: Mr. Sanjay Tiwari CEO/Executive Director Sgd: Dr. C.T.S.B. Perera Director

The accounting policies and notes on pages 17 through 30 form an integral part of the financial statements. Colombo 28th April 2009

Annual Report 2008/2009



inCoMe Statement for the year ended 31st March, 2009


note 009 LKR 008 LKR

Revenue Cost of Sales

2,936,155,203 (2,345,801,702)

2,014,127,621 (1,552,805,828)

Gross Profit Other Operating Income Distribution Costs Administrative Expenses Accelerated Depreciation on Property, Plant & Equipment Finance Cost 20 19

590,353,501 53,171,591 (69,336,041) (176,740,334) (658,698,253)

461,321,793 4,367,486 (40,345,278) (202,399,293) (10,838,910) (162,932,242)

profit/(Loss) Before tax Income Tax (Expense) / Reversal Net Profit/(Loss) for the Year 13

(261,249,537) 314,126 (260,935,410)

49,173,556 (14,031,103) 35,142,453

Earnings/(Loss) Per Share - Basic

22

(0.27)

0.05

Dividends Per Share

17

0.02

0.15

The accounting policies and notes on pages 17 through 30 form an integral part of the financial statements.



Annual Report 2008/2009

stAteMent of Changes in Equity for the year ended 31st March, 2009
share Capital LKR 554,216,880 share premium LKR 220,039,125 stated Capital LKR other Revaluation Reserves Reserve LKR LKR Retained earnings LKR total LKR

Note Balance as at 0 April 00 Transferred to Stated Capital Surplus on Revaluation of Property, Plant & Equipment 11 Tax effect of Items Taken Directly to or Transferred from Equity Dividend Paid Issues of shares for cash Net Profit for the Year Balance as at  March 008 Dividend Paid 17

- 21,502,500 -

- 317,446,897 1,113,205,402 571,175,000 571,175,000

(554,216,880) (220,039,125) 774,256,005 -

14 17

752,151,480 -

71,595,544

71,595,544 (83,132,507) 752,151,480 35,142,453

- (83,132,507) 35,142,453

- 1,526,407,485 21,502,500 -

571,175,000 341,052,387 2,460,137,372 - (19,001,722) (19,001,722)

Surplus on Revaluation of Property, Plant & Equipment 11 Net Loss for the Year Balance as at  March 009

95,857,543

95,857,543

- (260,935,410) (260,935,410) 667,032,543 61,115,255 2,276,057,783

- 1,526,407,485 21,502,500

The accounting policies and notes on pages 17 through 30 form an integral part of the financial statements.

Annual Report 2008/2009



CAsh Flows Statement for the year ended 31st March, 2009
Cash Flows from/(used in) operating Activities Cash Flow from operating Activities Net Profit/(Loss) before tax Adjustments for Depreciation Work-in-progress write off/Accelarated Depreciation on Property, Plant and Equipments Amortisation of Leasehold Property Provision for Retirement Benefit Obligations Investment Income Gain on sale of Property, Plant and Equipments Finance Cost operating profit Before Working Capital Changes (Increase)/Decrease in Inventories (Increase)/Decrease in Trade and Other Receivables Increase/(Decrease) in Trade and Other Payables Cash Generated from operations Income Tax Paid Retirement Benefit Obligations Costs paid Interest Paid Cash Flow from Operating Activities Cash Flow from investing Activities Acquisition of Property, Plant and Equipment Proceeds from Disposal of Property, Plant and Equipment Interest Received Dividend Received net Cash Flows used in investing Activities Cash Flow from Financing Activities Proceeds from Rights Issue Proceeds from Interest Bearing Loans and Borrowings Redemption of Debentures Principal Payment under Finance Lease Liability Dividends Paid Repayment of Interest Bearing Loans & Borrowings net Cash Flows from Financing Activities net Decrease in Cash and Cash equivalents Cash and Cash equivalent at the beginning of the year Cash and Cash equivalent at the end of the year 18 18 note 009 LKR 008 LKR

(261,249,537)

49,173,556

330,330,106 12,666,344 1,048,257 13,888,428 (459,423) (52,712,168) 658,698,253 702,210,261 (291,038,969) 34,016,879 (47,931,969) 397,256,202 (9,229,751) (7,769,949) (658,698,253) (278,441,752)

138,758,255 10,838,910 1,087,009 14,000,563 (4,367,486) 162,932,242 371,336,040 (97,926,355) (113,302,432) 325,040,088 486,234,350 (77,364,006) (4,917,067) (162,932,242) 241,021,035

5 15 19 19 20

15 20

4 19 19

(656,590,656) 39,546,854 369,263 90,160 (616,584,379)

(3,274,126,321) 4,367,486 75,366 (3,269,758,835)

12 12 17 12

3,221,270,466 (1,839,170) (18,721,588) (2,312,404,787) 888,304,922 (6,721,209) (274,332,808) (281,054,017)

752,151,480 2,744,895,820 (69,821,408) (1,748,806) (81,573,315) (568,065,453) 2,775,838,318 (252,899,482) (21,433,326) (274,332,808)

The accounting policies and notes on pages 17 through 30 form an integral part of the financial statements.



Annual Report 2008/2009

siGniFiCAnt Accounting Policies year ended 31st March, 2009


. CoRpoRAte inFoRMAtion . General Piramal Glass Ceylon PLC (Company) is a public limited liability Company incorporated and domiciled in Sri Lanka and listed in the Colombo Stock Exchange. The registered office of the Company and principle place of Business is located at 148, Maligawa Road, Borupana, Ratmalana and the production facility is located in Horana. . principal Activities and nature of operations During the year, the principal activity of the Company was the manufacturing and sale of glass bottles. . parent enterprise and Ultimate parent enterprise The Companys parent undertaking is Piramal Glass Limited, which is incorporated in India. . Date of Authorization for issue The Financial Statements of Piramal Glass Ceylon PLC for the year ended 31st March 2009 were authorized for issue in accordance with a resolution of the board of directors on 28 April 2009. . Basis of preparation The Financial Statements have been prepared on a historical cost basis, except for certain classes of asset categories that have been measured at fair value. The Financial Statements are presented in Sri Lankan Rupees. The preparation and presentation of these Financial Statements is in compliance with the Companies Act. No. 07 of 2007. .. statement of compliance The Financial Statements of Piramal Glass Ceylon PLC have been prepared in accordance with Sri Lanka Accounting Standards (SLAS). .. Comparative information The accounting policies have been consistently applied by the Company and are consistent with those used in the previous audited financial year which ended 31st March 2008. . sUMMARY oF siGniFiCAnt ACCoUntinG poLiCies .. Foreign Currency translation The financial statements are presented in Sri Lankan Rupees, which is the Companys functional and presentation currency. Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date. All differences are taken to profit or loss. Non monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. .. taxation Current taxes The provision for income tax is based on the elements of income and expenditure as reported in the financial statements and computed in accordance with the provisions of the Inland Revenue Act. Pursuant to agreement dated 19th July 2006 entered into with Board of Investment, the imposition, payment and recovery of income tax shall not apply for a period of 5 years from 10th December 2007. This exemption expires on 9th December 2012. After the said exemption period, the Company would be liable for income tax at the rate of 10% for a period of 2 years and at the rate of 20% thereon. Deferred taxation Deferred income tax is provided, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences except where the deferred income

Annual Report 2008/2009



siGniFiCAnt Accounting Policies year ended 31st March, 2009 (Contd.)


tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred income tax relating to items recognised directly in equity is recognised in equity and not in the income statement. The Inland Revenue Act does not apply as stated above under the current taxes w.e.f 10th December 2007. Therefore temporary differences do not arise during the year under review. sales tax Revenues, expenses and assets are recognised net of the amount of sales tax except where the sales tax incurred on a purchase of assets or service is not recoverable from the taxation authorities in which case the sales tax is recognised as a part of the cost of the asset or part of the expense items as applicable and receivable and payable that are stated with the amount of sales tax included. The amount of sales tax recoverable and payable in respect of taxation authorities is included as a part of receivables and payables in the Balance Sheet. .. Borrowing Costs Borrowing costs are recognised as an expense in the period in which they are incurred, except to the extent where borrowing costs that are directly attributable to the acquisition, construction, or production of an asset that takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of that asset. .. inventories Inventories are valued at the lower of cost and net realizable value, after making due allowances for obsolete and slow moving items. Net realizable value is the price at which inventories can be sold in the ordinary course of business less the estimated cost of completion and the estimated cost necessary to make the sale. The cost incurred in bringing inventories to its present location and condition are accounted using the following cost formulae:Raw Materials Finished Goods & Work-in-progress Consumables & Spares Moulds & Neckring Equipment Goods in Transit - At actual cost on weighted average basis - At the cost of direct materials, direct labour and an appropriate proportion of fixed production overheads based on normal operating capacity. - At actual cost on weighted average basis - At Cost less usage for Production - At actual cost

.. trade and other Receivables Trade receivables are stated at the amounts they are estimated to realize net of allowances for bad and doubtful receivables. Other receivables and dues from Related Parties are recognized at cost less allowances for bad and doubtful receivables. .. Cash and Cash equivalents Cash and cash equivalents are defined as cash in hand, demand deposits and short term highly liquid investments,

8

Annual Report 2008/2009

siGniFiCAnt Accounting Policies year ended 31st March, 2009 (Contd.)


readily convertible to known amounts of cash and subject to insignificant risk of changes in value. For the purpose of cash flow statement, cash and cash equivalents consist of cash in hand and deposits in banks net of outstanding bank overdrafts. Investments with short maturities i.e. three months or less from the date of acquisition are also treated as cash equivalents. .. property, plant and equipment Cost and Valuation All items of Property, Plant & Equipment are initially recorded at cost. Where items of Property, Plant and Equipment are subsequently revalued, the entire class of such assets is revalued. Revaluations are made with sufficient regularity to ensure that their carrying amounts do not differ materially from their fair values at the balance sheet date. Subsequent to the initial recognition as an asset at cost, revalued Property, Plant and Equipment are carried at revalued amounts less any subsequent depreciation thereon. All other Property, Plant and Equipment are stated at historical cost less depreciation. When an asset is revalued, any increase in the carrying amount is credited directly to a revaluation surplus unless it reverses a previous revaluation decrease relating to the same asset, which was previously recognized as an expense. In these circumstances the increase is recognized as income to the extent of the previous write down. When an assets carrying amount is decreased as a result of a revaluation, the decrease is recognized as an expense unless it reverses a previous increment relating to that asset, in which case it is charged against any related revaluation surplus, to the extent that the decrease does not exceed the amount held in the revaluation surplus in respect of that same asset. Any balance remaining in the revaluation surplus in respect of an asset, is transferred directly to Retained Earnings on retirement or disposal of the asset. Accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained earnings. When each major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement in the year the asset is derecognised. The assets residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, at each financial year end. ..8 Leases - Company as a lessee Finance leases, which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged reflected in the income statement. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term. The depreciation policy for depreciable leased assets is consistent with that for depreciable asset that are owned as described in 4.5 Operating lease payments are recognised as an expense in the income statement on a straight line basis over the lease term. ..9 Leasehold property Leasehold property is stated at recorded carrying values as at the effective date of Sri Lanka Accounting Standard 19 Leases. Such carrying amounts are amortized over the remaining lease term or useful life of the leased property whichever in shorter. No further revaluations of these leasehold Properties will be carried out.

Annual Report 2008/2009

9

siGniFiCAnt Accounting Policies year ended 31st March, 2009 (Contd.)


..0 investments Long term investments Long term investments are stated at cost. The cost of the investment is the cost of acquisition inclusive of brokerage fees, duties and bank fees. The carrying amount of long term investments is reduced to recognize a decline other than temporary in the value of investments, determined on an individual investment basis. .. investment properties Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met; and excludes the costs of day to day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the balance sheet date. Gains or losses arising from changes in the fair values of investment properties are included in the income statement in the year in which they arise. Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognised in the income statement in the year of retirement or disposal. Transfers are made to investment property when, and only when, there is a change in use, evidenced by the end of owner occupation, commencement of an operating lease to another party or completion of construction or development. Transfers are made from investment property when, and only when, there is a change in use, evidenced by commencement of owner occupation or commencement of development with a view to sale. For a transfer from investment property to owner occupied property or inventories, the deemed cost of property for subsequent accounting is its fair value at the date of change in use. If the property occupied by the Company as an owner occupied property becomes an investment property, the Company accounts for such property in accordance with the policy stated under property, plant and equipment up to the date of change in use. For a transfer from inventories to investment property, any difference between the fair value of the property at that date and its previous carrying amount is recognised in the income statement. When the Company completes the construction or development of a self constructed investment property, any difference between the fair value of the property at that date and its previous carrying amount is recognised in the income statement. .. provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. .. Retirement Benefit obligations a) Defined Benefit plan Gratuity The Company measures the present value of the promised retirement benefits of gratuity which is a defined benefit plan with the advice of an actuary every year using Projected Unit Cost Method. Actuarial gains and losses are recognized as income or expenses in the year in which it arises. The liability is not funded. b) Defined Contribution plans employees provident Fund & employees trust Fund All employees who are eligible for Employees Provident Fund Contributions and Employees Trust Fund Contributions are covered by relevant contribution funds in line with respective statutes and regulations. The Company contributes 12% and 3% of gross emoluments of employees to Employees Provident Fund and Employees Trust Fund respectively. c) non Recurring Cost of Living Allowances and other Lump-sum payments to employees Provision has been made in the accounts for non recurring cost of living allowances payable to employees by the collective agreement and other lump-sum payments as decided by the management.

0

Annual Report 2008/2009

siGniFiCAnt Accounting Policies year ended 31st March, 2009 (Contd.)


.. impairment of Assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the assets recoverable amount. An assets recoverable amount is the higher of an assets or cash-generating units fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. Impairment losses of continuing operations are recognised in the income statement in those expense categories consistent with the function of the impaired asset, except for property previously revalued where the revaluation was taken to equity. In this case the impairment is also recognised in equity up to the amount of any previous revaluation. For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the company makes an estimate of recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the assets recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the income statement unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. Impairment losses recognised in relation to goodwill are not reversed for subsequent increases in its recoverable amount. .. income statements Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable net of trade discounts and sales taxes. The following specific criteria are used for the purpose of recognition of revenue. a) sale of Goods Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer; with the Company retaining neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold. b) interest Interest Income is recognized as the interest accrued unless collectibility is in doubt. c) Dividends Dividend Income is recognised on cash basis. d) others Other income is recognized on an accrual basis Net Gains and losses of a revenue nature on the disposal of Property, Plant & Equipment have been accounted for in the income statement, having deducted from proceeds on disposal, the carrying amount of the assets and related selling expenses. On disposal of revalued Property, Plant and Equipment, amount remaining in Revaluation Reserve relating to that asset is transferred directly to Retained Earnings. Gains and losses arising from incidental activities to main revenue generating activities and those arising from a group of similar transactions which are not material, are aggregated, reported and presented on a net basis.

Annual Report 2008/2009



notes to the Accounting - year ended 31st March, 2009


009 LKR 008 LKR

. .

ReVenUe summary Revenue (3.2)

2,936,155,203 2,936,155,203

2,014,127,621 2,014,127,621

.

segmental information Local Sales Export Sales

2,511,908,251 424,246,952 2,936,155,203

1,812,963,404 201,164,217 2,014,127,621

. .

pRopeRtY, pLAnt & eQUipMent Cost/Valuation At Cost Buildings Plant and Machinery Electrical Power Installation Furnace Motor Vehicles Tools and Implements Office Equipment Gas Station

Balance as at 0.0.008 LKR 1,178,337,291 1,092,835,250 398,555,448 705,006,558 51,593,907 6,617,824 112,283,504 19,547,660 3,564,777,442

Additions/ transfers LKR 76,131,696 593,605,252 210,547,411 75,343,066 2,280,000 1,401,338 15,978,981 1,597,924 976,885,668

Revaluation LKR -

Disposals/ transfers LKR

Balance as at .0.009 LKR

- 1,254,468,987 (143,972,325) 1,542,468,177 609,102,859 780,349,624 (2,340,000) 51,533,907 8,019,162 128,262,485 (28,876) 21,116,708 (146,341,201) 4,395,321,909

At Valuation/Cost incurred since Last Revaluation Freehold Land Buildings 116,795,218 Plant and Machinery 867,280,845 Electrical Power Installation 97,186,780 1,081,262,843 Assets on Finance Leases Plant and Machinery total Value of Assets . in the Course of Construction

37,012,457 37,012,457

95,857,543 95,857,543

(26,502,498) -

132,870,000 90,292,720 867,280,845 97,186,780

(26,502,498) 1,187,630,345

14,335,027 14,335,027 4,660,375,312

1,013,898,125

95,857,543

14,335,027 14,335,027

(172,843,699) 5,597,287,281

Balance as at 0.0.008 LKR Capital Work-in-Progress Total Gross Carrying Amount 194,265,187 194,265,187 4,854,640,499

incurred During the year LKR 649,386,484 649,386,484 1,663,284,609

transfers LKR (838,375,515) (838,375,515)

Balance as at .0.009 LKR 5,276,156 5,276,156

(1,011,219,214) 5,602,563,436



Annual Report 2008/2009

notes to the Accounting - year ended 31st March, 2009


. . pRopeRtY, pLAnt & eQUipMent (Cont.) Depreciation At Cost Buildings Plant and Machinery Electrical Power Installation Furnace Motor Vehicles Tools and Implements Office Equipment Gas Station Balance as at 0.0.008 LKR 7,717,016 25,234,801 5,354,051 24,111,817 29,123,988 3,978,793 51,273,505 2,195,175 148,989,146 At Valuation/Cost incurred since Last Revaluation Buildings Plant and Machinery Electrical Power Installation Charge for the year LKR 31,037,225 85,666,808 38,450,473 92,634,571 4,558,663 598,860 18,139,146 494,205 271,579,952 Disposals/ transfers LKR (2,339,998) (2,339,998) Balance as at .0.009 LKR 38,754,241 110,901,609 43,804,524 116,746,388 31,342,653 4,577,653 69,412,651 2,689,380 418,229,100

36,197,000 455,877,631 46,623,944 538,698,575

2,478,172 51,579,355 3,707,094 57,764,621

(8,779,885) (8,779,885)

29,895,287 507,456,986 50,331,038 587,683,311

Assets on Finance Leases Plant and Machinery total Depreciation . net Book Values At Cost Buildings Plant and Machinery Electrical Power Installation Furnace Motor Vehicles Tools and Implements Office Equipment Gas Station

8,510,505 8,510,505 696,198,226

985,533 985,533 330,330,106

9,496,038 9,496,038

(11,119,883) 1,015,408,449 009 LKR 1,215,714,746 1,431,566,568 565,298,335 663,603,236 20,191,254 3,441,508 58,849,834 18,427,328 3,977,092,809 008 LKR 1,170,620,275 1,067,600,449 393,201,397 680,894,741 22,469,919 2,639,031 61,009,999 17,352,485 3,415,788,296

At Valuation/Cost incurred since Last Revaluation Freehold Land Buildings Plant and Machinery Electrical Power Installation

132,870,000 60,397,433 359,823,859 46,855,742 599,947,034

80,598,218 411,403,214 50,562,836 542,564,268

on Finance Leases Plant and Machinery

4,838,989 4,838,989 4,581,878,832

5,824,522 5,824,522 3,964,177,086 194,265,187 4,158,442,273

In the Course of Construction total Carrying Amount of property, plant and equipment

5,276,156 4,587,154,987

Annual Report 2008/2009



notes to the Accounting - year ended 31st March, 2009 (Contd.)


. . pRopeRtY, pLAnt & eQUipMent (Cont.) the Depreciation rates of property, plant & equipment are as follows. Buildings and Gas Station Plant and Machinery Plant and Machinery - New Project New Project Furnace Steel New Project Refectories Electric Power Installation Electric Power Installation - New Project Office Lab and Equipment - Computer Systems - Others Tools and Implements Motor Vehicles . 009 2.5% on cost 10% on cost 7.5% on cost 7.5% on cost 12.5% on cost 15% on cost 05% on cost 25% on cost 10% on cost 10% on cost 15% on cost 008 2.5% on cost 10% on cost 7.5% on cost 7.5% on cost 12.5% on cost 15% on cost 05% on cost 25% on cost 10% on cost 10% on cost 15% on cost

The land and buildings were revalued during the financial year 31st March 1991 by Messrs Development Finance Corporation of Ceylon. Further, freehold land has been valued during the year 1995 by Mr. D.S.A. Senevirathne (A.I.V) . The resulting surpluses of Rs. 93,473,350/- on the revaluation in financial year 90/91 and Rs. 97,417,177/- on the revaluation in financial year 94/95 had been transferred to the revaluation reserve, which was fully utilised for subsequent issues of bonus shares. The freehold lands have been again revalued by Mr. K.T.D. Tissera (Chartered Valuation Surveyor) in September 2007 and March 2009 and the resulting revaluation surplus reported amounts to Rs. 571,175,000/- and Rs. 95,857,543/- respectively. The carrying amount of revalued assets that would have been included in the financial statements had the assets been carried at cost less depreciation is as follows: Cumulative Depreciation if assets were carried at cost 009 LKR 5,774,348 66,199,323 7,088,723 net Carrying Amount 009 LKR 11,651,585 7,057,535 787,635 net Carrying Amount 008 LKR 11,651,585 7,378,333 1,181,454

Class of Asset Freehold Land Buildings Plant and Machinery Electrical Power Installation . .

Cost LKR 11,651,585 12,831,883 66,199,323 7,876,358

During the year the Company acquired Property, Plant & Equipment to the aggregate value of Rs.656,590,656/(2008 - Rs. 3,274,126,321/-) for cash. LeAsehoLD pRopeRtY Balance at the beginning of the year Amortisation during the year Balance at the end of the year 009 LKR 26,783,327 (1,048,257) 25,735,070 LKR 703,142,457 (37,012,457) 666,130,000 008 LKR 27,870,336 (1,087,009) 26,783,327 LKR 703,142,457 703,142,457

.

inVestMent pRopeRtY Balance at the beginning of the year Transfers during the year for owner occupation purposes Balance at the end of the year

.

During the year 2007/2008 the Company relocated its production facility from Rathmalana to Horana. Due to the relocation the land previously utilised for the production has been classified under Investment Property as per SLAS 40 as held for un determined future use. No Management decision had been taken on the future intended utilisation of this land as at the date of the balance sheet.



Annual Report 2008/2009

notes to the Accounting - year ended 31st March, 2009 (Contd.)


. . LonG teRM inVestMent investments in equity securities - Quoted

no of shares 009 008 18,032

009 Carrying Market Value Value LKR LKR 261,359 1,226,176

008 Carrying Market Value Value LKR LKR 261,359 1,903,608 008 LKR 162,877,770 15,710,878 82,518,037 203,668,000 6,991,497 (4,151,988) 467,614,194

Development Finance Corporation of Ceylon PLC

18,032

8.

inVentoRies Raw Materials Work in Progress Finished Goods Consumables and Spares Goods in Transit Less: Allowance for obsolete and slow moving inventory

009 LKR 249,410,127 6,938,141 262,985,198 243,471,685 (4,151,988) 758,653,163

9. 9.

tRADe AnD otheR ReCeiVABLes summary Trade Debtors Less : Allowance for Doubtful Debts Other Debtors Advances and Prepayments Loans to Company Officers (9.2)

LKR 737,788,476 (33,915,474) 703,873,002 207,122,595 29,691,156 10,277,132 950,963,885

LKR 611,056,085 (27,936,052) 583,120,033 250,007,337 104,797,242 16,139,350 954,063,961

9.

Loans to Company officers Balance as at the beginning of the year Loans granted during the year Less: Repayments Balance at the end of the year

16,139,350 2,980,000 19,119,350 (8,842,218) 10,277,132 009 number 950,086,080 LKR 1,526,407,485

25,115,843 2,232,000 27,347,843 (11,208,494) 16,139,350 008 number 950,086,080 LKR 1,526,407,485

0.

stAteD CApitAL Ordinary Shares

Ordinary Shares

0. Rights, preference and Restrictions of Classes of Capital The holders of ordinary shares confer their right to receive dividends as declared from time to time and are entitled to one vote per share at a meeting of the Company. All shares rank equally with regard to the Companys residual assets. . otheR ReseRVes General Reserve (11.1) Revaluation Reserve (11.2) 009 LKR 21,502,500 667,032,543 688,535,043 008 LKR 21,502,500 571,175,000 592,677,500

. General Reserve which is a revenue reserve represents the amounts set aside by the directors for general applications.

Annual Report 2008/2009



notes to the Accounting - year ended 31st March, 2009 (Contd.)


. otheR ReseRVes (Cont.) 009 LKR 571,175,000 95,857,543 667,032,543 008 LKR 571,175,000 571,175,000

. Revaluation Reserve On: Property, Plant and Equipment As at 1 April Revaluation surplus during the year As at 31 March

The above revaluation surplus consists of net surplus resulting from the revaluation of property, plant and equipment as described in Note 4.6. The unrealised amount cannot be distributed to shareholders. . inteRest BeARinG LiABiLities 009 Amount Repayable Within  Year LKR Finance Leases (12.1) Syndicated Project Loan (12.2) Project Loan (12.3) Short Term Loans (12.4) Bank Overdrafts (18.2) Amount Repayable After  Year LKR 008 Amount Amount Repayable Repayable Within  Year After  Year LKR LKR

total LKR

total LKR

1,934,202 1,174,112 3,108,314 1,788,291 3,159,193 4,947,484 831,000,000 1,269,000,000 2,100,000,000 507,000,000 1,593,000,000 2,100,000,000 141,648,333 590,376,607 732,024,940 - 250,000,000 250,000,000 853,938,733 - 853,938,733 427,097,994 - 427,097,994 298,308,297 - 298,308,297 304,425,331 - 304,425,331 2,126,829,565 1,860,550,719 3,987,380,284 1,240,311,616 1,846,159,193 3,086,470,809

. Finance Lease

Finance Leases Gross Liability Finance Charge allocated to future period Net Liability

As At 0.0.008 LKR 5,287,515 5,287,515 5,287,515 (340,031) 4,947,484 As At 0.0.008 LKR 550,000,000 500,000,000 525,000,000 525,000,000 2,100,000,000

new Leases obtained LKR -

Repayments

As At .0.009 LKR LKR (2,046,780) 3,240,735 (2,046,780) 3,240,735 3,240,735 (132,421) 3,108,314

. syndicated project Loan Development Finance Corporation of Ceylon PLC Bank of Ceylon Hatton National Bank PLC Sampath Bank PLC

new Loans obtained LKR -

Repayments LKR -

As At .0.009 LKR 550,000,000 500,000,000 525,000,000 525,000,000

- 2,100,000,000

Rate of interest and terms of Repayments The rate of interest will be 4% per annum above the Average Weighted Deposit Rate (AWDR) rounded upwards to the nearest 0.5% per annum on Rs 1.7Bn and interest will be charged at 0.25% less than Average Weighted Prime Lending rate (AWPLR) rounded upwards to the nearest 0.5% per annum for the balance loan amount. 1st Instalment of Rs. 507 Million and the balance is payable in 59 equal instalments after a grace period of 24 months from the date of first disbursement. Currently Company is in the process of Re-scheduling the repayment of this loan and is in discussion with the partner banks for the Syndicated Project Loan.



Annual Report 2008/2009

notes to the Accounting - year ended 31st March, 2009 (Contd.)


. inteRest BeARinG LiABiLities (Cont.) As At new Loans 0.0.008 obtained LKR LKR 250,000,000 - 248,691,608 - 250,000,000 250,000,000 498,691,608 As At .0.009 LKR LKR (16,666,668) 233,333,332 - 248,691,608 - 250,000,000 (16,666,668) 732,024,940 Repayments

. project Loan Development Finance Corporation of Ceylon PLC* Hatton National Bank PLC* Sampath Bank PLC*

Rate of interest and terms of Repayments Rs. 0 Mn Loan* The rate of interest will be 1% per annum above the Average Weighted Prime Lending Rate (AWPLR) rounded upwards to the nearest 0.5% . Repayable by 60 monthly installments after a grace period of 12 months from the date of first disbursement. . short term Loans Commercial Bank of Ceylon PLC Peoples Bank Citibank N.A. Standard Chartered Bank As At new Loans Repayments As At 0.0.008 obtained .0.009 LKR LKR LKR LKR 75,000,000 250,000,000 (258,500,000) 66,500,000 10,097,994 155,114,383 (83,449,209) 81,763,168 90,000,000 1,828,214,475 (1,494,788,910) 423,425,565 252,000,000 489,250,000 (459,000,000) 282,250,000 427,097,994 2,722,578,858 (2,295,738,119) 853,938,733 . inCoMe tAX 009 LKR 10,880,354 1,127,857 (813,730) 9,229,751 20,424,232 008 LKR (39,717,321) 10,472,123 (37,238,454) 77,364,006 10,880,354

. Balance (Payable) / Receiavble as at Beginning of the Year Under/(Over) Provision of current taxes in respect of prior years (13.3) (Provision) / Reversal Made During the Year (13.3) Payments Made During the Year Balance as at the end of the Year

. Pursuant to agreement dated 19th July 2006 entered into with Board of Investment, the imposition, payment and recovery of income tax shall not apply for a period of 5 years from 10th December 2007. This exemption expires on 9th December 2012. After the said exemption period, the Company would be liable for income tax at the rate of 10% for a period of 2 years and at the rate of 20% thereon. With the commencement of the tax exemption period the Company is liable to pay income tax on the taxable income derived from other sources excluding from manufacturing operations. Income tax payments made during the year represents payments made in respect of Economic Services Charge in accordance with the Economic Service Charge Act No. 13 of 2006 and amendment thereon. . Current income tax Current Tax Expense on ordinary Activities for the Year Current Tax Expense on other Income for the year Under/(Over) Provision of current taxes in respect of prior years Deferred income tax Deferred Taxation Charge/(Reversal) (Note 14) Income tax expense reported in the Income Statement statement of Changes in equity Deferred income tax reversal over the tax exemption period (Note 14.1) income tax expense reported in equity LKR 813,730 (1,127,857) (314,127) LKR 37,238,454 (10,472,123) (12,735,228) 14,031,103

71,595,544 71,595,544

Annual Report 2008/2009



notes to the Accounting - year ended 31st March, 2009 (Contd.)


. DeFeRReD tAX Balance as at Beginning of the Year Provision / (Reversal) Made During the Year Provision / (Reversal) Made During the Year (14.1) Balance as at the end of the Year LKR 18,979,577 18,979,577 LKR 103,310,349 (12,735,228) (71,595,544) 18,979,577

. Due to the tax exemption period for 5 years commencing w.e.f 10th December 2007, the Deferred Tax has been computed up to 9th December 2007 and the reversal arising has been recognised in the Income Statement. The deferred tax reversal that arises during the tax exemption period amounting to Rs. 71,595,544/- was recognised under Retained Earnings in 2007/08.  RetiReMent BeneFit oBLiGAtions Balance as at 0.0.008 LKR 78,381,791 78,381,791 payments during the year LKR (7,769,949) (7,769,949) Balance as at .0.009 LKR 84,500,270 84,500,270

Provision for Gratuity

Charge for the year LKR 13,888,428 13,888,428

. Messrs. K.A.Pandit, Actuaries, carried out an actuarial valuation of the defined benefit plan - gratuity on 31st March 2009. Appropriate and compatible assumptions were used in determining the cost of retirement benefits. The principal assumptions used are as follows: 009 008 Discount rate assumed (%) 9% 9% Further salary increase (%) 8% + salary scales 8% + salary scales Method of actuarial valuation Projected Unit Cost method Projected Unit cost method . tRADe AnD otheR pAYABLes Trade Payable - Related Parties (16.1) - Other Other Paybles - Related Parties (16.2) Sundry Creditors including Accrued Expenses 009 LKR 8,968,261 256,044,740 236,495,850 147,269,079 648,777,931 . trade Dues to Related parties Piramal Glass Limited - India Relationship Parent Company 008 LKR 49,240,527 372,898,507 169,974,804 104,596,062 696,709,900

8,968,261 8,968,261

49,240,527 49,240,527

. other paybles - Related parties Piramal Glass Limited - India

Relationship Parent Company

236,495,850 236,495,850

169,974,804 169,974,804 008 LKR 10,600,998 10,600,998 008 LKR 83,132,507 008 LKR 30,092,522 30,092,522 (304,425,331) (274,332,809)

.

DiViDenDs pAYABLe Unclaimed Dividends

009 LKR 10,881,132 10,881,132

. Dividends paid Declared and paid during the year Final dividends for 2008 - Rs. 0.02 per share (2007 - Rs.0.15 per share) 8. CAsh AnD CAsh eQUiVALents

009 LKR 19,001,722 009 LKR 17,254,280 17,254,280

8. Favourable Cash and Cash equivalents Balance Cash and Bank Balances 8. Unfavourable Cash and Cash equivalents Balance Bank Overdraft (Note 12) Cash and cash equivalents for the purpose of Cash Flow Statement

(298,308,297) (281,054,017)

8

Annual Report 2008/2009

notes to the Accounting - year ended 31st March, 2009 (Contd.)


9. otheR opeRAtinG inCoMe Income from Investments - Quoted Gain on Sales of Fixed Assets Interest Income 009 LKR 90,160 52,712,168 369,263 53,171,591 0. FinAnCe Cost Interest Expense on Overdrafts Finance Charges on Lease Liabilities Debenture Interest Interest Expense on Short Term Loans Interest Expense on Project Loan 009 LKR 55,724,561 207,616 151,953,405 450,812,671 658,698,253 . pRoFit/(Loss) BeFoRe tAX Stated after Charging/(Crediting) Including in Cost of Sales Depreciation Personnel Costs including the following; - Defined Benefit Plan Costs -Gratuity - Defined Contribution Plan Costs - EPF & ETF Including in Administration Expenses Directors Fees and Emoluments Auditors Remuneration - Fees and Expenses Technical Fee* Depreciation Personnel Costs including the following; - Defined Benefit Plan Costs -Gratuity - Defined Contribution Plan Costs - EPF & ETF Donations Exchange (Gain) / Loss Including in Selling and Distribution Costs Advertising Costs Allowance for Doubtful Debts 008 LKR 75,366 4,292,120 4,367,486 008 LKR 44,933,221 297,974 3,497,679 15,374,678 98,828,690 162,932,242

009 LKR 324,948,916 11,114,249 12,401,226 28,321,427 613,931 72,773,868 5,381,189 2,774,179 2,242,595 521,428 (7,900,055) 252,086 27,918,746

008 LKR 128,835,040 11,841,272 5,692,746 17,826,401 539,500 91,647,025 9,923,213 2,159,290 1,691,084 108,000 2,772,143 109,979 13,351,890

Technical Fee represents the amount payable to Piramal Glass Limited - India for the technical advises and assistance provided during the year as per the agreement entered into between the two companies. As per the agreement, provisions have been made in the books of account of the Company for the years ended 31 March 2009 and 31 March 2008 accordingly. . eARninGs/(Loss) peR shARe

. Basic Earnings/(Loss) Per Share is calculated by dividing the net profit/(loss) for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. The weighted average number of ordinary shares outstanding during the year and the previous year are adjusted for events that have changed the number of ordinary shares outstanding, without a corresponding change in the resources such as a bonus issue. . The following reflects the income and share data used in the basic Earnings/(Loss) Per Share computations. Amount Used as the numerator: Net Profit/(Loss) Attributable to Ordinary Shareholders for basic Earnings/(Loss) Per Share 009 LKR (260,935,410) 009 Number 950,086,080 008 LKR 35,142,453 008 Number 755,083,844

number of ordinary shares Used as Denominator: Weighted Average number of Ordinary Shares in issue

Annual Report 2008/2009

9

notes to the Accounting - year ended 31st March, 2009 (Contd.)


. CoMMitMents AnD ContinGenCies

. Capital expenditure Commitments The Company has capital commitments for acquisition of Property, Plant and Equipment incidental to ordinary course of business as follows. 009 008 LKR Mn. LKR Mn. Contracted but not provided 360 Authorized by the Board, but not contracted for 200 . Assets pLeDGeD The following assets have been pledged as security for liabilities. nature of assets Immovable Properties nature of Liability Carrying Amount pledged 009 008 LKR Mn. LKR Mn. First / secondary Mortgage 4,461 3,875 for Loans and Borrowings 4,461 . 3,875 included under Property, Plant & Equipment 560

eVents oCCURRinG AFteR the BALAnCe sheet DAte There have been no material events occurring after the Balance Sheet date that require adjustments to or disclosure in the financial statements. ReLAteD pARtY DisCLosURes During the year the Company entered into transactions with the following Related Parties. 009 LKR 008 LKR

.

. transaction with Group Companies name of Company Piramal Glass Limited - India nature of transactions Purchasing of bottles Purchase of Bottle - In transit Technical Fees Relationship Parent Company

44,392,475 72,773,868

100,958,005 6,991,497 91,647,025

. The amounts payable to the above related party as at 31st March 2008 and 31st March 2009 are disclosed in Notes 16.1 and 16.2. . transactions with Directors/ Key Management personnel * Emoluments and Fees Including Other Benefits total compensation paid to key management personnel 009 LKR 28,321,427 28,321,427 008 LKR 17,826,401 17,826,401

* Key management personnel includes the Board of Directors and the Executive Director of the Company.

0

Annual Report 2008/2009

shARehoLDeRs and Investor Information


. . stoCK eXChAnGe ListinG Issued Ordinary Shares of Piramal Glass Ceylon PLC are listed with Colombo Stock Exchange of Sri Lanka. oRDinARY shARe hoLDeRs As At .0.009 From 1 1,001 5,001 10,001 50,001 100,001 500,001 Over 1,000,001 to 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 no.of holders 1,230 7,766 1,000 1,165 244 261 25 43 11,742 Categories of share holders Local Individuals Local Institutions Foreign Individuals Foreign Institutions 11,493 197 47 5 11,742 Percentage of shares held by the public - 43.54% . 0 LARGest shARehoLDeRs
name of shareholder 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Piramal Glass Limited - India Employees Provident Fund DFCC Vardhana Bank Ltd / Mr.R.F.T. Perera Mr. L.M.S.H. Alnaqib Elgin Investments Limited Deutsche Bank AG-National Equity Fund DFCC Bank A/C 1 Sri Lanka Insurance Corporation Limited -General Fund Eagle Insurance Company Limited A/C 3 Mr. D.K. Subasinghe and Mrs. S.N. Subasinghe J.B. Cocoshell (Pvt) Ltd Bangkok Glass Industry Company Limited Freudenrorg Shipping Agencies Limited Mr.A.J. Tissera Mr.M.K. Chandrasiri Alpex Marine (Pvt) Ltd Deutsche Bank AG-Namal Growth Fund Dr.T. Senthilverl The Ceylon Chamber of Commerce A/C 2 Rosewood (Pvt) Limited Other Shareholders no. of shares 536,331,880 39,857,142 28,510,000 25,000,000 23,191,700 17,811,485 12,981,852 10,539,428 9,000,000 8,000,000 7,481,500 6,280,000 5,156,571 5,050,000 5,000,000 5,000,000 4,336,457 4,150,000 4,000,000 3,139,000 760,817,015 189,269,065 950,086,080 % 56.451 4.195 3.001 2.631 2.441 1.875 1.366 1.109 0.947 0.842 0.787 0.661 0.543 0.532 0.526 0.526 0.456 0.437 0.421 0.330 80.077 19.923 100.000

no. of shares 653,004 18,115,115 8,035,753 27,825,872 18,693,356 56,707,604 18,276,837 801,778,539 950,086,080

% 0.07 1.91 0.85 2.93 1.97 5.97 1.92 84.39 100.00

168,939,685 184,739,856 29,619,958 566,786,580 950,086,080

17.78 19.44 3.12 59.66 100.00

.

shARe pRiCe

Market price per share for the year Highest Price - Rs.2.70 Date - 28.04.2008 Lowest Price - Rs.1.20 Date - 30.03.2009 Closing Price - Rs.1.30

Annual Report 2008/2009



ten Year Financial Review


st March trading Results Revenue Profit/(Loss) before Tax Tax Expense/(Reversal) Profit/(Loss) after Tax shARe CApitAL AnD ReseRVes Share Capital Share Premium Stated Capital Other Reserves Shareholders Funds Assets Less LiABiLities Current Assets Current Liabilities Net Current Assets (Liabilities) Long Term Assets and Investments Total Assets Less Current Liabilities Long Term & Deferred Liabilities net Assets 429,478 535,297 (161,131) (246,723) 268,347 560,723 829,070 288,574 567,883 856,457 496,143 (117,384) 378,759 518,420 897,179 (147,071) 750,108 512,898 (276,358) 236,540 884,565 1,121,105 599,861 667,724 774,195 1,188,304 1,462,651 1,747,296 (257,760) (355,987) (466,535) (636,205) (1,947,622) (2,786,489) 342,101 311,737 307,660 552,099 (484,971) (1,039,193) 4,888,629 4,403,658 5,279,281 4,240,088 000 00 LKR.000 LKR.000 690,094 21,789 21,789 787,661 80,248 15,183 65,065 00 LKR.000 844,665 140,628 50,947 89,681 00 LKR.000 00 00 LKR.000 LKR.000 00 00 LKR.000 LKR.000 008 LKR.000 2,014,128 49,174 14,031 35,142 009 LKR.000 2,936,155 (261,250) (314) (260,935)

920,209 1,261,291 1,274,173 1,555,783 1,857,186 140,959 159,752 338,558 272,558 184,082 46,030 46,948 106,547 102,458 80,076 94,928 112,804 232,011 170,129 104,006

277,108 497,148 (95,762) 678,494

277,108 497,148 (30,696) 743,560

277,108 497,148 (24,148) 750,108

277,108 497,148 34,757 809,013

277,108 497,148 47,801 822,057

554,217 220,039 163,427

554,217 220,039 251,569

554,217 220,039 338,949

1,526,407 933,730 2,460,137

1,526,407 749,651 2,276,058

937,683 1,025,825 1,113,205

848,040 1,038,296 1,001,577 1,194,012 1,190,141 1,350,033 1,309,237 1,746,111

(150,576) (112,897) 678,494 743,560

(312,692) (368,084) (412,350) (283,413) (632,906) (1,943,521) (1,964,031) 809,013 822,057 937,683 1,025,825 1,113,205 2,460,137 2,276,057

Ratios & other information Earning/(Loss) Per Share Dividend Per Share Market value per share Price Earning Ratio Interest Cover Current Ratio Liquid Ratio Total Debt/Total Assets Gearing Ratio Net Asset per share 0.78 9.50 12.17 1.89 2.66 1.24 0.31 0.23 24.50 2.35 7.50 3.19 7.32 2.17 1.21 0.33 0.11 26.80 3.24 3.00 17.00 5.25 25.74 4.22 2.27 0.26 0.04 27.07 3.43 3.00 20.25 5.90 19.02 1.85 1.13 0.42 0.23 29.19 2.04 3.60 27.00 13.24 7.00 2.33 1.32 0.43 0.20 29.66 0.45 0.18 47.75 11.40 13.56 1.88 1.01 0.45 0.20 16.92 0.31 0.15 2.50 8.06 9.57 1.66 0.93 0.43 0.07 1.85 0.17 0.03 2.50 14.71 8.06 1.87 1.29 0.53 0.41 2.01 0.05 0.15 2.00 40.00 1.22 0.75 0.51 0.61 0.96 2.59 (0.27) 0.02 1.30 (4.81) 0.60 0.63 0.35 0.68 1.25 2.40



Annual Report 2008/2009

GLossARY of Financial Terminology


Earning Per share Dividend Per share Price Earning Ratio Interest Cover Current Ratio Liquid Ratio Total Debt/Total Assets Gearing Ratio Net Asset per share : : : : : : : : : Net Profit After Taxation / Number of Shares Dividends paid during the year / Number of Shares Market Value as at year end / Earning Per Share Profit Before Interest / Interest Current Asset / Current Liabilities (Current Asset - Stocks) / Current Liabilities Total Liabilities / Total Assets Long Term Loans / Shareholders Fund Shareholders Funds / Number of Shares

Annual Report 2008/2009



notiCe of Meeting
NOTICE IS HEREBY GIVEN that the Fifty Fourth (54th) Annual General Meeting of the Company will be held on the 21st of July 2009, at 10.30 am at Mount Lavinia Hotel for the following purposes. 1. To receive and consider the Annual Report of the Board and the Financial Statements of the Company for the year ended 31st March 2009, together with the Report of the Auditors thereon. 2. To re-appoint Messrs, Ernst & Young, Chartered Accountants as Auditors of the Company until the next Annual General Meeting and to authorize the Directors to fix their remuneration. 3. To re-elect as a Director Dr. C.T.S.B.Perera, who retires by rotation in terms of Article 98 of the Articles of Association of the Company and being eligible has offered himself for re-election. 4. To approve the donations and contributions made by the Directors during the year under review and to authorise the Board to determine donations and contributions for the ensuing year.

note: Any shareholder entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of him. A proxy need not be a shareholder. Instruments appointing proxies must be lodged with the Company not less than 48 hours before the meeting. By Order of the Board Ms. Sagarika Jayasundera COMPANY SECRETARY PIRAMAL GLASS CEYLON PLC. 148, Maligawa Road, Borupana, Ratmalana. 22nd May 2009 Colombo



Annual Report 2008/2009

FoRM of Proxy
AnnUAL GeneRAL MeetinG . Full name of shareholder . national identity Card number of shareholder . Address of shareholder Being a member/members of the Piramal Glass Ceylon PLC hereby appoint: . name of proxy holder . national identity Card number of proxy holder . Address of proxy holder Failing him, Mr. Vijay Shah, the Chairman of Piramal Glass Ceylon PLC, or failing him, Dr. C.T.S.B.Perera or failing him, Mr.N.Santhanam, or failing him, Mr. R.M.S. Fernando or failing him, Mr. Sanjay Tiwari as my/our proxy to speak/vote for me/us on me/our behalf at the 54th Annual General Meeting of the Company to be held on the 21st of July 2009, at 10.30 am at Mount Lavinia Hotel and at any adjournment thereof and at every poll which may be taken in connection with such meeting and to vote as indicated below. For Against 1. To receive and consider the Annual Report of the Board and the Financial Statements of the Company for the year ended 31st March 2009, together with the Report of the Auditors thereon. To re-appoint Messrs, Ernst & Young, Chartered Accountants as Auditors of the Company until the next Annual General Meeting and to authorize the Directors to fix their remuneration. To re-elect as a Director Dr. C.T.S.B. Perera, who retires by rotation in terms of Article 98 of the Articles of Association of the Company and being eligible had offered himself for re-election. To approve the donations and contributions made by the Directors during the year under review and to authorise the Board to determine donations and contributions for the ensuing year.

2.

3. 4.

5. Number of Shares held 6. Signature of Shareholder Date

Central Depository System

Non Central Depository System

AttenDAnCe sLip SHAREHOLDER - PLACE YOUR SIGNATURE ONLY IN THE SPACE PROVIDED PROxYHOLDER - PLACE YOUR NAME, NIC NO., SIGNATURE IN THE SPACE PROVIDED SIGNATURE SHAREHOLDER SIGNATURE PROxYHOLDER PROxYHOLDERS FULL NAME PROxYHOLDLERS NIC NUMBER Important: Please bring your National Identity Card when you attend the Meeting.

Annual Report 2008/2009



FoRM of Proxy
instRUCtions FoR the CoMpLetion oF the FoRM oF pRoXY Shareholders are requested to: 1. Forward the completed form of proxy to the Registered Office of the company, Piramal Glass Ceylon PLC at No. 148, Maligawa Road, Borupana, Ratmalana, not less than 48 hours before the time appointed for the holding of the meeting. 2. 3. Perfect the form of proxy by filling in all necessary details legibly, signing and dating. Complete the form in capital letters. If the shareholder is a Company or a Corporate body the form of proxy should be executed under the common seal in accordance with its Articles of Association.



Annual Report 2008/2009

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