ANNUAL REPORT 2014_2015 FINAL

Transcription

ANNUAL REPORT 2013 / 14
CORPORATE INFOMATION
Registered Office
JAT Holdings (Pvt) Ltd
No: 351, Pannipitiya Road,
Thalawathugoda, Sri Lanka.
Phone
Fax
Email
Web Site
-
+94 11– 4407700
+94 11 – 2773793
[email protected]
www.jatholdings.com
Date of Incorporation
1st July 1993
Board of Directors
Dr. S. Selliah
Mr. Aelian Gunawardene
Mr. Jehan Amaratunga
Mr. Indika Chandrasekera
Mr. S. Sivasubramaniam
Mr. Lakmal Perera
-
Chairman
Managing Director
Independent Director
Director Operations
Director Finance
Director Commercial
Audit Committee
Dr. S. Selliah
-
Chairman
Remuneration Committee
Dr. S. Selliah
-
Chairman
Bankers
Commercial Bank PLC
Hongkong and Shanghai Banking Corporation
Hatton National Bank PLC
National Development Bank PLC
Auditors
KPMG
32A, Sir Mohamed Macan Markar Mawatha, P.O Box 186, Colombo 03, Sri Lanka
Secretaries
RNH Holdings (Pvt) Ltd.
JAT Holdings (Pvt) Ltd | Annual Report 2013/14
01
INTRODUCTION
JAT Holdings (Pvt) Ltd, founded in 1993 with the primary objective of providing
total timber coating solutions to the Sri Lankan furniture industry follows the
credo, get the right finish first. With an understanding of how important it is to use
the correct product and process the first time around in order to achieve the best
result. Consequent to successfully establishing ourselves in the timber coating
market, the Company expanded its product offering to include a more
comprehensive range of products for a wider range of surfaces and construction
needs. The product portfolio includes decorative, Exterior and Interior wall paints,
Solvent based and Water based Enamel paint, Maintainers, Putties & Plasters,
Steel & Mineral fiber ceiling, Engineered wooden flooring, Exterior Decking, Office
Seating & Desking solutions, Carpets and Paint Brushes.
“ Continuing our success journey, JAT has now ventured beyond borders, signing
agreements with corporate entities in the region.”
02
INDEX
PAGE NO
CONTENTS
01
Corporate Information
02
Introduction
03
Vision Mission
04
Business Review
05
The JAT Team
06
Financial Highlights
07-08 Chairman’s Message
09
Managing Director’s Message
10-11 Directors Profile
12-13 Board of Directors
14-15 Corporate Management
16
Our Brands
17
Our Product Range
18
Branch Locations
19
International Presence
20-23 Awards
24-25 Environmental Policy
26-50 Financial Reports
51
CSR
52
Form of Proxy
53
Notice of Meeting
VISION MISSION
Our Vision
•
To establish the brands marketed by the Company as the brand of choice in the
furnishing and finishing industries.
•
To be the most preferred customer of leading suppliers in the industry.
•
Achieve a group annual turnover of SLR. 5 billion (US$ 45 Million) by 2015.
•
Achieve a minimum net profit (after tax) of 15% of turnover.
•
Establish distributors in new International markets and convert existing distributors to
form joint ventures with the company (distributors’ 5/JV3).
•
Be among the top 20 “employers of choice” in Sri Lanka.
•
Establish 8 Company owned showrooms throughout the markets serviced.
•
Be renowned as the “Best source of information” in the industry .
•
Technically Train and Certify 10,000 professionals / applicators in the industry.
Our Mission
“To be the preferred supplier in the South Asian region for leading brands in the furnishing and
finishing industries”
03
BUSINESS REVIEW
CHAPTER 01 | WELCOME TO JAT HOLDINGS
04
THE JAT TEAM
At JAT, a highly competent workforce equipped with the technical know-how and
experience on par with the best in the industry, is our most valued asset. Led by a
dynamic, hands-on Board of Directors at the helm, the entire workforce is expected
to foster core values which include an in-depth knowledge of the entire operation
process, orientation towards complete customer satisfaction, leadership at all levels
and continuous improvement. We have reached our present position of being the
undisputed leader in the wood coatings industry in Sri Lanka, the Maldives and
Bangladesh owing to a plethora of supporting factors, including a comprehensive
range of products complemented by a dynamic sales team which has been trained
and driven to provide excellent technical support services.
Our team is truly empowered to address any situation by incorporating vigilant
monitoring and controlling systems to ensure the application of the strictest quality
control standards in keeping with ISO regulations. These measures have enabled us
to expand our list of satisfied customers and to be an astoundingly dynamic
company of international repute.
05
FINANCIAL HIGHLIGHTS
“Amidst a challenging and competitive environment the company has recorded impressive
results for the year 2013/14. The company recorded revenue of 3 billion rupees as compared to
a revenue of 2.1 billion rupees in the previous year, which represents a growth of around 41% in
the revenue for the year 2013/14. The company also recorded a gross profit of 999 million
rupees, which was a 29% increase year on year for the comparative period. The profit after tax
recorded was a healthy 405.6 million rupees compared to 355 million the previous year.”
Gross Profit
Revenue
2012/13
Rs. 2.1 Billion
2012/13
2013/14
Rs. 772.8 Million
Rs. 3 Billion
Profit After Tax
2012/13
2013/14
Rs. 355 Million
Rs. 405.6 Million
06
2013/14
Rs. 999 Million
CHAIRMAN’S MESSAGE
It is with confidence that I present to you, on
behalf of the board of Directors the annual
report and the annual audited accounts for the
year ended 31st March 2014, and I have
pleasure in welcoming you to the 1st Annual
General meeting of JAT Holdings (Pvt) Ltd.
The company, while achieving the anticipated
targets, has just concluded a successful year.
The year under review is also important, as the
company decided to go towards the pathway of
broad basing its ownership structure, by
migrating from a totally privately held company
to a public company by inviting shareholders on
a private placement, which concluded in
February 2014.
Amidst a challenging and competitive
environment the company has recorded
impressive results for the year 2013/14. The
company recorded revenue of 3 billion rupees
as compared to a revenue of 2.1 billion rupees
in the previous year, which represents a growth
of around 41% in the revenue for the year
2013/14. The company also recorded a gross
profit of 999 million rupees, which was a 29%
increase year on year for the comparative
period. The profit after tax recorded was a
healthy 405.6 million rupees compared to 355
million the previous year. The company
incurred substantial capital expenditure on its
expansion of the factory and setting up the
required infrastructure and facility for the
launch of the Permoglaze and Crown paint
range. The company financials and accounting
are in the process of migrating towards
reporting financials on the SLFRS format in the
coming years.
While always going for the best brands, the
company currently is the market leader for
Sayerlack wood coatings and wood based
solutions in the country. While the sales of
Sayerlack have been steadily increasing in the
local market, and also having created its strong
presence and visibility locally, we are also
concentrating on the export market, which is
steadily growing in volumes. The company is
also concentrating much on their other flagship
products such as Herman Miller, Permoglaze,
07
Armstrong, Gossen and Tai Ping, which are
world-class products at the doorstep of the Sri
Lankan market.
The company has already put in place the
required infrastructure and facility locally, to
produce and market Permoglaze paints and the
process is ongoing. Permoglaze paint is a
well-known brand to the Sri Lankan market and
the company is confident of gaining a reasonable
market base in the future. The company has also
secured the agency and signed a licensing
agreement for the manufacture and sale of the
world-class paint brand Crown Paints from
United Kingdom and hopes to launch this in the
second or third quarter of the next year. Having
these two brands of decorative paints the
company hopes to cater to different segments in
the industry.
The company has opened many “Tech Centers”
in the country where the customer or end user is
able to get professional help regarding the
product range and application methods making
it, easier and economical and more efficient to
them. The company also invests in training
customers on their product range so that they
are able to fulfill the motto “get the right finish
first”. The company’s view is also to set up a
modern learning center at the head office
premises, which would enhance the knowledge
and skills of our employees on the product range
we carry where also practical skills will be a
reality.
The company while concentrating on its
business activities is well aware of its social
responsibilities too. They have embarked on
corporate social programs such as creating
awareness and working towards reducing
maternal mortality further from its current
levels bringing it to almost zero level. This is
done in collaboration with the Sri Lanka College
of Obstetricians and Gynaecologists.
Statutory committees; As per the corporate
governance requirements the company has
now put in place a board audit committee and a
board remuneration committee which meet
regularly on related matters.
Finally let me, on behalf of the board of
Directors thank the dynamic management team
and all staff for their sincere support and
contribution in achieving this performance and
growth during the period under review. I also
wish to thank the members of the board, past
and present, for their valuable insights and
guidance, reflecting their diverse experience
and expertise in driving the business and
striving to achieve excellence. I also wish to
thank the dealers, distributors, retailers and the
end users for their continued support and for
the trust placed in our product range and us.
.............................................
Dr.S.Selliah
CHAIRMAN
“The company, while achieving
the anticipated targets has
just concluded a successful year.”
08
MANAGING DIRECTOR’S MESSAGE
Our commitment to sustainability and social
responsibility is integral to our ongoing success
and we have effectively lived up to this
throughout the years, since our inception in
1993. I am extremely proud of the
accomplishments JAT has achieved thus far
and share the same sentiments on the
ventures planned for the future.
We have progressively developed from a small
Colombo based Company to an esteemed
Public Limited Liability Organization steered
by, over 250 employees. JAT has successfully
established itself as the most reliable supplier
and undisputed leader in the field of Timber
Coating in Sri Lanka as well as, Bangladesh and
Maldives.
The ongoing efforts of our co-workers are the
strength of our Company, enabling to deliver
excellent
results
through
improved
manufacturing processes. We will continue to
utilize our innovative expertise to bring about
powerful solutions for the benefit of our patrons
and end users.
Throughout our journey, we have had the
privilege of being in collaboration with a
number
of
internationally
reputed
multi-national firms such as Sayerlack, Herman
Miller, Crown, Permoglaze, Brush Master,
Armstrong, Gossen, Borma Wachs and Tai
Ping. These companies have established and
maintained their market leadership and with
their support and confidence entrusted in us,
we will continue to prosper whilst providing a
service of the highest standards to our
customers. We believe our sustainable
performance, superior quality and affordability
provides a competitive advantage and is
valued by all our stakeholders.
JAT’s attention to detail & quality and our
commitment to enhance customer satisfaction
has always and will in the future demonstrate
our unparalleled performance to make a real
difference.
.............................................
Aelian Gunawardene
MANAGING DIRECTOR
With customer satisfaction as our prime focus
within the corporate and retail spheres, it is
hardly surprising that we have managed to
spearhead a revolutionary role as the market
leader. Our Operating model and community
&
environmental
responsibilities
are
testaments to our progressive success.
“Our Operating model and community
& environmental responsibilities are
testaments to our progressive success.”
09
DIRECTORS PROFILE
Dr.S.Selliah (MBBS, M.Phil)
Chairman
Dr. Sivakumar Selliah was appointed to the board of JAT Holdings Pvt
Ltd in February 2014 and is the current Chairman of JAT Holdings Pvt
Ltd. Dr. Selliah holds a MBBS degree and a Master’s Degree (M.Phil).
He has over 22 years of experience in diverse fields which include
manufacturing, healthcare, plantation, logistics and packaging.
Dr.Selliah is currently the Deputy Chairman of Asiri Hospital PLC,
Asiri Surgical Hospital PLC and Central Hospitals Private Ltd.
He is a Director of Lanka Floor Tiles PLC, HNB Assurance PLC, Softlogic
Holdings PLC, Lanka Walltiles PLC, Lanka Ceramic PLC and Horana
Plantation PLC. Dr.Selliah is the Chairman of Cleanco Lanka Pvt Ltd.
Dr.Selliah serves on the Remuneration Committee and Audit
Committee of some of the companies listed above.
Aelian Gunawardene
Managing Director
Mr. Aelian Gunawardene was a founder Director of JAT Holdings
(Pvt) Ltd and was appointed as the Managing Director in 1997. He
also serves as Director of J Chem Coatings (Pvt) Ltd, JAT Holdings
Bangladesh (Pvt) Ltd and Brush Master (Pvt) Ltd.
Mr. Gunawardene has over 20 years experience in Marketing and
Management and holds a Diploma in Marketing Management from
the Chartered Institute of Marketing UK.
Jehan Prasanna Amaratunga
Mr. Jehan Prasanna Amaratunga is the Executive Deputy Chairman of
MTD Walkers PLC, Sri Lanka. He is a Fellow Member of The Institute
of Chartered Accountants of Sri Lanka and a Fellow Member of the
Chartered Institute of Management Accountants,UK. Mr.
Amaratunga was awarded First in Order of Merit Prize at the final
examination of the Institute of Chartered Accountants of Sri Lanka.
Mr. Amaratunga currently serves as a Director of People’s Bank and
People’s Merchant Finance PLC. He is also the Chairman of People’s
Insurance Limited. He Counts over 25 years of experience in the fields
of Finance and Management. Mr. Amaratunga has served as a
Consultant and Director to a number of Corporations and Private
Business entities. At the National Conference of the Institute of
Chartered Accountants of Sri Lanka, he presented a paper titled
“Value for Money Accounting” which is one of the many notable
achievements that stand out in his career. He was also a member of
the Governing Council of the Institute of Chartered Accountants of
Sri Lanka.
10
Indika Chandrasekara
Director Operations
Mr. Indika Chandrasekera was appointed as a Director of JAT
Holdings (Pvt) Ltd in 2012. Mr. Chandrasekera has over 12 years of
experience in Sales & Manufacturing.
Somasundaram Sivasubramaniam
Director Finance Treasury and Commercial
Mr. Somasundaram Sivasubramaniam was appointed as a Director of
JAT Holdings (Pvt) Ltd in 2009. Mr. Sivasubramaniam is an associate
member of the Chartered Accountants of Sri Lanka and has over 15
years experience in the finance field..
Lakmal Perera
Director Commercial
Mr. Lakmal Perera was appointed a Director of JAT Holdings (Pvt) Ltd
in 2005. Mr. Perera holds a Diploma in Banking Finance and
Management and has over 16 years experience in logistics
11
Aelian Gunawardene
Managing Director
Indika Chandrasekara
Director Operations
12
Lakmal Perera
Director Commercial
Jehan Amaratunga
Dr. Sivakumar Selliah
Chairman
13
S. Sivasubramaniam
Director Finance
05
01
02
06
03
08
09
04
07
14
01 Sivasubramaniam
Director Finance
(Treasury & Commercial)
02 Hiranthi Goonawardhana
Director Finance
(Reporting & Control)
03 Indika Chandrasekara
Director Operations
04 Wasantha Gunaratne
Director Technical
05 Aelian Gunawardene
Managing Director
06. Susil Rajapakshe
General Manager
(HR, IT & Administration)
07 Jeffry Ebert
Director Business Development
08. Joyce Gunawardene
Director Promotions
09 Lakmal Perera
Director Commercial
15
OUR BRANDS
CHAPTER 02 | PRODUCT RANGE
16
OUR BRANDS
“We currently represent world leading brands such as Sayerlack, Herman Miller,
Crown, Permoglaze, Armstrong, Gossen, Borma Wachs, Brush Master, Norton
and Tal Ping.”
We have expanded our horizons far and wide by securing affiliations with the
world’s best in construction and finishing solutions, a result of which is the mantle
occupied by us at the helm of the industry.
With the motive of achieving international standards and to be the foremost In
the field we formed subsidiaries and steadily joined hands with world leaders In
this field to expand our operations to other countries in the subcontinent. We
currently represent world leading brands such as Sayerlack, Herman Miller,
Crown, Permoglaze, Armstrong, Gossen, Borma Wachs, Brush Master, Norton
and Tai Ping.
17
Head Office
No: 351, Pannipitiya Road,
Thalawathugoda.
Phone : +94 11–4407700
Fax : +94 11 – 2773793
100 km
01
60 mi
JAT Head office
JAT Tech Center
Herman Miller Showroom
134 Havelock Road,
Colombo 5.
Phone: + 94 115288662
Fax: +94 115404430
Herman Miller showroom
Distributor
JAT Tech Center
*JAT Nawala Tech Center
No: 1, Narahenpita Road,
Nawala.
Phone / Fax: +94 11 4400108
****
02
**Moratuwa Tech Center
No:515/A, Rawatawatta,
Galle Road,Moratuwa.
Phone: + 94 11 5745745
Fax: +94 11 5745746
03
04
***JAT Kandy Tech Centre
No. 153, Katugastota,
Kandy.
Phone: +94 81 4951969
Fax: +94 81 4951969
****JAT Trinco Tech Center
No. 405, Main Street,
Trincomalee.
Phone : +94 26 4925189
Fax: +94 26 4925189
05
06
08
***
07
*
**
09
10
Our Distributors
01 Narayana Hardwares Trader
92 C, Stanely Road, Jaffna
Tel: 021 2225390 / Fax: 021 2225390
02 Pasindu Suppliers Enterprises
Jaffna Road, Issenbassagala,
Medawachchiya
Tel: 025 2245345 / Fax: 025 2245345
03 Perera Distributors
No.757, Anuradhapura Road, Dambulla
Tel: 066 2283838 / Fax: 066 2284484
11
04 Dambullu Enterprises
No 185, Puttalam Road, Kurunegala
Tel: 0372224078 / Fax: 0372224078
05 Asia Agro Services Enterprises
No.26, Vilgoda Road, Kurunegala
Tel: 037 2056816 / Fax: 037 2056816
07 Wasana Enterprises
06 A.R.G. Distributors (Pvt)Ltd
No. 190, Alapitiwala, Ragama
No.421, Kurunegala Road, Aladeniya, Warallagama
Tel: 011 2955559 / Fax: 011 2955559
Tel: 081 2460121 / Fax: 081 2463561
08 Rimaco Distributors
No. 169, Hekittha Road, Wattala
Tel: 011 5920290 / Fax: 011 2931293
09 Davnik Distributor
No.107, Batugedara, Rathnapura
Tel: 045 2231677
11 Pathinayake Paint Distributors
No.320, New Tangalle Road,
Kotuwegoda, Matara
Tel: 041 2222972 / Fax: 041 2222972
10 Saman Udaya Kumara Agencies
Tissa Road, Yalabowa, Wellawaya
Tel: 055 2274516 / Fax: 055 2274516
18
INTERNATIONAL PRESENCE
Our trusted International affiliations have been the key element in our growth and strong presence
in the Global market. Together with our partners in Bangladesh, Seychelles, India and Maldives, we
have evolved in providing strategic solutions for the increasingly diverse and sophisticated needs of
our clientele. We welcome International opportunities through our ongoing quest for new
innovative products and services, in order to enhance our efforts in servicing major corporations,
Financial Institutions, Individuals, small & medium-sized Enterprises and Public Sector Entities.
BANGLADESH
INDIA
SRI LANKA
SEYCHELLS
MALDIVES
International Distributors
Head Office - Bangladesh
JAT Holdings Bangladesh (Pvt) Ltd
House 5, Road 8, Block J,
Baridhara,Dhaka 1212 Bangladesh.
Tele : +88 028822243, 8826827
Fax : + 88 028821830
E mail : [email protected]
Head Office - Maldives
General Distributors (Pvt) Ltd
39 Orchid Magu, PO Box 2015,
Malé 20-02, Republic Of Maldives.
Contact Person : Mr. Risvi Abdul Majeed
Tel : +96 07773759
Email : [email protected]
Panache Walls N Floors
Shop No. 34, Parekh Market,
M. G. Road, Ghatkopar (East)
Mumbai – 400077
Alpha Delta
223, Kailash Hills,
New Delhi - 110065, India
M: +91-99 1040 6669
19
D.A.Woodlac Coatings Pvt Ltd.
81/13, Madurai Road, Thirumangalam.
Madurai - 625706. Ph : +91 4549 208208.
AWARDS
CHAPTER 03 | ACHIEVEMENTS
20
AWARDS
Sri Lanka Institute of Architects Trade Exhibition 2009 - Most Innovative Trade Stall
JAT was awarded the ‘Most Innovative Trade Stall’ at the 26th Annual Trade Exhibition of the Sri
Lanka Institute of Architects.
Sri Lanka Chamber of Small & Medium Industries 2010 - Silver for Industrial Excellence Awards
Hotel Show 2010 - Most Innovative Stall
JAT was presented with the award for the ‘Most Innovative Stall’ at the biennial ‘Hotel Show
Exhibition’ which has been taking place for the past 12 years, facilitating both Local & International
hospitality industry suppliers to promote their products and services.
Halal World Awards 2012 - Most Innovative Product
Brush Master, an affiliated product of JAT wins the most Innovative Product in the Lifestyle sector at
the Halal World Awards 2012.
Sri Lanka Institute of Architects Trade Exhibition 2013
JAT Holdings, the leader in the furnishing and finishing industry, won the award for the’ Most
Innovative and Informative Stall’ at the Architects Trade Exhibition, held in Colombo.
Effie Awards 2013 “Sayerlack - Take Care of Them All”
JAT won the Effie Award of the year under the category Household Products for the renowned
brand, ‘Sayerlack’.
“JAT Holdings, the leader in the
furnishing and finishing industry”
21
AWARD WINING PRODUCTS
Herman Miller
- Awarded the ‘Cradle-to-cradle’ award for most of Herman Miller products.
- Most Herman Miller products are BIFMA certified (business and institutional furniture
manufacturers association) certified.
- Herman Miller certified by GREENGUARD
- Herman Miller Healthcare is recognized by Premier, Inc., with a 2014 “Supplier Legacy Award”
in its Facilities category.
- Herman Miller Healthcare receives a 2013 “Supplier of the Year” award from Novation in the
Capital and Imaging Supplier category.
- Herman Miller achieves tenth consecutive listing on Dow Jones Sustainability World Index.
- Herman Miller is recognized by Working Mother magazine as one of the 2013 100 Best
Companies for working moms.
- Herman Miller Healthcare earns its fourth consecutive Best of NeoCon award as Nemschoff’s
Terra is recognized with a “Silver” award in Healthcare Furniture.
- Herman Miller sweeps Showroom and Booth design awards at NeoCon 2013 with recognition
as the Best Large Showroom and the overall “Best of Competition.
Sayerlack
- Sayerlack awarded for CATAS QUALITY AWARD (CSEW 43/13) in the category of COATING
SYSTEM FOR EXTERIOR WOOD “STABLE” PRODUCTS which certifies the quality of the coating
system for its outdoor life, wood protection and production.
- Sayerlack obtained Ecolabel certification in July 2002, the European Ecological Quality brand
aimed at large-scale consumption services and products.
- Sayerlack awarded for DET NORSKE VERITAS ENVIRONMENTAL MANAGEMENT SYSTEM
CERTIFICATE. The SHERWIN-WILLIAMS ITALY S.R.L. Environmental Management System
complies with the UNI EN ISO 14001:2004 (ISO 14001: 2004) regulatory requirements.
22
- Sayerlack awarded for DET NORSKE VERITAS QUALITY MANAGEMENT SYSTEM CERTIFICATE. The
SHERWIN-WILLIAMS ITALY S.R.L. Quality System complies with the UNI EN ISO 9001:2008 (ISO
9001:2008) regulatory requirements.
Borma Wachs
- Borma Wachs awarded EUROFINS CERTIFICATIONS FOR EN71-III NORM . Borma Wachs started in
collaboration with Euro fins Danish laboratories www.eurofins.com, a process for the certifications
of products. The aim is to confirm not only quality, but also the safety of the product range,
produced in total observance of current legislations
- Crown Paints has been awarded the prestigious Green Manufacturer title at the Insider Made in
the North West Awards, for its company-wide commitment to forging a low carbon manufacturing
future for the region.
“Sayerlack awarded for
DET NORSKE VERITAS
ENVIRONMENTAL MANAGEMENT
SYSTEM CERTIFICATE”
23
ENVIRONMENTAL POLICY
ENVIRONMENTAL
POLICY
No: 351, Pannipitiya Road, Thalawathugoda, Sri Lanka., are
committed to protect our environment.
To achieve this we shall:
Strive to prevent, eliminate, and reduce waste and pollution by
improving operations and recycling / reusing of material
wherever possible.
Conserve natural resources and strive to reduce material and
energy consumptions.
Comply with all applicable statutory and regulatory
requirements.
The environmental policy of the company shall be
communicated to all employees and made available to all
interested parties.
dated : 01/01/2013
24
ECO GLOBAL AWARDS
Always mindful of environmental and ecological issues, we
obtained Ecolabel certification in July 2002, the European
Ecological Quality brand aimed at large-scale consumption
services and products.
Founded in 1992, the ecological quality brand, or Ecolabel, is a
special certification system created to help European consumers
chose the most ecological and environmentally-friendly
products and services, providing clear and simple indications. All
products with the Ecolabel brand were checked by independent
organizations that verified compliance with rigorous ecological
and performance-related criteria. The determination of
ecological compliance involves the analysis of the
product/service lifecycle. For each product, the main
environmental aspects are considered (air and water quality, protection of the soil, reducing waste,
saving energy, managing natural resources, protecting the ozone layer, environmental safety,
biodiversity impact) highlighting the environmental impact of the product during its lifecycle, i.e.
from the production of raw materials to removing empty packages.
In the field of coating products, the features that are highlighted are: - Good performance for internal
use: these requirements are among the most rigorous in the EN ISO regulatory field. - Limited use of
dangerous substances. - Low solvent content to minimize atmospheric emissions. Recommendations on conserving the product after it is opened to minimize solid wastes. Recommendations on preventative measures to protect the product users. - Recommendations for
cleaning equipment and tools and correctly managing waste - to limit water pollution. - Confirmation
that comprehensive details for the use of the product, substrate choice and preparation have been
provided to avoid errors that can lead to wasted materials.
“highlighting the environmental
impact of the product during its
lifecycle,”
25
FINANCIAL REPORT
CHAPTER 04 | FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2014
26
REPORT OF THE AUDIT COMMITTEE
JAT Holdings (Private) Limited operates by
national best practice guidelines and has
opted this year to appoint and govern the
audit committee in line with the Listing Rules
of the Colombo Stock Exchange. The Audit
Committee will assist the Board to improve the
existing system to be more transparent.
It will focus on system of internal control
financial reporting process compliance with
the laws and regulations and other best
practices for Corporate Governance. The
Committee ensures the independence of the
External Auditors and confirms the compliance
The Managing Director and Director Finance on
with the requirements under the Act in
our request assisted us at these meetings to
relation to appointment, re-appointment and
formulate our recommendation.
removal of the External Auditors. The
Committee makes recommendations to the
Thanking you.
Board as appropriate. The External Auditors
are duly appointed by the shareholders at the
Best regards,
Annual General Meeting each year.
The committee confirms to the best of their
knowledge that the functions of the Audit
..................................................
Committee are in accordance with the
Jehan Amaratunga
requirements under the Listing Rules of the
Chairman – Audit Committee
Colombo Stock Exchange for the purpose of
Independent Director – JAT Holdings (Private)
adhering to best practices. The committee has
Limited.
reviewed internal control systems of all areas
and
recommendations
received
were
submitted to the Board for Implementation.
In addition to the above, the Audit Committee
since
February
2014
regularly
reviews
Quarterly Accounts and Audited Accounts
before these are presented to the Board of
Directors.
27
INDEPENDENT AUDITORS’ REPORT
TO THE SHAREHOLDERS OF JAT HOLDINGS (PRIVATE) LIMITED
28
JAT HOLDINGS (PRIVATE) LIMITED
STATEMENT OF FINANCIAL POSITION
Note
As at 31 March,
Assets
Non current assets
Property, plant and equipment
Intangible assets
Long term investments
Total non current assets
Current assets
Inventories
Trade and other receivables
Amounts due from related parties
Advances and prepayments
Short term investments
Cash and cash equivalents
Total current assets
Total assets
459,713,230
1,571,052
7,500,000
468,784,282
362,104,556
3,133,518
5,625,000
370,863,074
6
7
8
9
808,737,675
1,049,949,538
123,701,304
107,324,792
11,423,450
26,828,324
2,127,965,083
2,596,749,365
348,719,709
655,441,284
62,877,396
12,692,952
10,426,147
50,252,772
1,140,410,260
1,511,273,334
628,770,000
877,666,746
1,506,436,746
900,000
584,047,678
584,947,678
12.1
13
14.1
5
2,589,179
19,107,871
12,376,448
1,714,366
35,787,864
11,622,322
14,047,935
12,466,656
2,435,183
40,572,096
12.2
14.2
15
9,747,631
13,400,208
863,469,643
19,833,515
39,895,867
108,177,891
1,054,524,755
1,090,312,619
2,596,749,365
11,755,592
3,400,008
442,255,796
52,432,900
332,888,005
24,156,581
18,864,678
885,753,560
926,325,656
1,511,273,334
11
Liabilities
Non current liabilities
Finance lease obligation
Employee benefits
Long term loan
Deferred tax liability
Total non current liabilities
Current Liabilities
Current portion of long term loan
Trade and other payables
Advance received from Directors
Amounts due to related parties
Income tax payable
Bank overdrafts
Total current liabilities
Total liabilities
Total equity and liabilities
2013
Rs.
2
3
4
10
Equity and liabilities
Equity
Stated capital
Retained earnings
Total equity
2014
Rs.
16
17
10
The financial statements are to be read in conjunction with the related notes, which form an integral part of
these financial statements of the Company.
These financial statements are prepared and presented in compliance with the requirements of the Companies
Act No.7 of 2007.
……………………………
Ms. H. Goonawardhana
Director Finance Reporting and Controlling
The Board of Directors is responsible for the preparation and presentation of these financial statements in
accordance with SLFRS for SMEs.
Approved and signed for and on behalf of the Board;
……………………………
Mr. A. W. Gunawardene
Managing Director
31 July 2014
Colombo
…………………………………
Mr. S. S. Subramaniam
Director Finance Treasury and Commercial
29
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March,
Note
18
Revenue
Cost of sales
Gross profit
2014
Rs.
2013
Rs.
3,005,383,991
2,133,581,905
(2,006,415,031)
(1,360,704,381)
998,968,960
772,877,524
17,263,328
18,516,546
Administrative expenses
(140,237,443)
(166,123,070)
Distribution expenses
(370,366,805)
(224,995,237)
505,628,040
400,275,763
19
Other income
Results from operating activities
20
Finance income
21.1
1,612,163
2,785,100
Finance costs
21.2
(47,132,580)
(23,304,287)
Net finance costs
(45,520,417)
(20,519,187)
Profit before taxation
460,107,623
379,756,576
(54,438,555)
(24,718,591)
405,669,068
355,037,985
22
Tax expense
Profit for the year
The financial statements are to be read in conjunction with the related notes, which form an integral part
of these financial statements of the Company.
30
STATEMENT OF CHANGES IN EQUITY
For the year ended 31st March,
Stated Capital
Rs.
Balance as at 01st April 2012
900,000
Retained
earnings
Rs.
Total
Rs.
241,699,693
242,599,693
Profit for the year
-
355,037,985
355,037,985
Dividend 2011/12
-
(12,690,000)
(12,690,000)
Balance as at 31st March 2013
900,000
584,047,678
584,947,678
Balance as at 01st April 2013
900,000
584,047,678
584,947,678
Shares issued during the year
627,870,000
Profit for the year
-
405,669,068
Dividend 2012/13
-
(39,150,000)
627,870,000
405,669,068
(39,150,000)
Interim dividend 2013/14
-
(72,900,000)
(72,900,000)
Balance as at 31st March 2014
628,770,000
-
877,666,746
1,506,436,746
The financial statements are to be read in conjunction with the related notes, which form an
integral part of these financial statements of the Company.
31
STATEMENT OF CASH FLOW
2014
Rs.
Cash flows from operating activities
Adjustments for:
Depreciation
Amortization
Provision for retiring gratuity
Provision for investments
Write off of non moving inventory
Provision for doubtful debtors
Bad debts written off
Investment income
Finance expenses
Operating profit before working capital changes
2013
Rs.
460,107,623
379,756,576
26,863,793
1,562,466
5,059,936
3,814,819
9,529,358
(1,612,163)
5,041,265
510,367,097
8,705,121
2,313,408
2,466,618
1,875,000
8,555,151
7,035,120
1,447,459
(2,785,100)
2,552,220
411,921,573
(375,132,296)
(440,901,978)
(60,823,908)
(94,631,840)
(313,054,490)
421,213,847
(352,963,569)
(267,534,876)
(147,021,039)
2,600,253
(6,421,302)
97,466,174
122,015,051
213,025,834
Gratuity paid
Taxes paid
Net cash flow (used in)/ generated from operating activities
Cash flow from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Withdrawal/ (investment) in short term investments
Interest received
Net cash flow used in investing activities
Cash flow from financing activities
Advance against share capital received
Share investment
Loan obtained during the year
Loan repayments
Loan interest paid
Lease rentals paid
Dividends paid
Net cash flow generated from financing activities
(41,123,085)
(394,086,654)
(339,101)
(21,302,264)
191,384,469
(124,239,397)
1,636,088
(122,603,309)
(208,395,166)
(1,567,444)
10,287,714
2,785,100
(196,889,796)
(52,432,900)
575,437,100
20,000,000
(10,090,013)
(3,148,498)
(13,763,388)
(112,050,000)
403,952,301
52,432,900
17,000,000
(1,133,336)
(992,892)
(7,066,262)
(11,421,000)
48,819,410
Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
(112,737,661)
31,388,094
(81,349,567)
43,314,083
(11,925,989)
31,388,094
26,828,324
(108,177,891)
(81,349,567)
50,252,772
(18,864,678)
31,388,094
Adjustments for working capital changes
Increase in trade and other receivables
Increase in inventories
Decrease/ (increase) in amount due from related parties
Increase in advances and prepayments
Increase in amount due to related parties
Increase in trade payables
Cash generated from operations
Analysis of cash and cash equivalents at the end of the year
Cash at bank and cash in hand
Bank overdraft
The financial statements are to be read in conjunction with the related notes, which form an integral part of
these financial statements of the Company.
32
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2014
1.
Accounting policies
1.1
Reporting entity
JAT Holdings (Private) Limited, (“the Company”) is a limited liability company, incorporated and
domiciled in Sri Lanka. The registered office and principal place of business of the Company are
located at No. 351, Pannipitiya Road, Thalawathugoda.
1.2
Principal activities and nature of operations
The Company carries on the business of importers, exporters, agents, distributors, manufacturers,
representatives, international traders, suppliers of and dealers in chemicals and chemical products,
furniture, electrical and electrical goods, local produce and products.
1.3
Basis of preparation
(a)
Statement of compliance
The financial statements have been prepared in accordance with Sri Lanka Accounting Standard for
Small and Medium Sized Entities (SLFRS for SMEs).
(b)
Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following
items in the statement of financial position:
•
•
employee benefit is measured using the gratuity formula method
fixed deposits are recorded at amortized cost
(c)
Functional and presentation currency
These financial statements are presented in Sri Lankan Rupees, which is the Company’s functional
currency.
(d)
Use of estimates and judgments
The preparation of financial statements in conformity with Sri Lanka Accounting Standard for Small
and Medium Sized Entities (SLFRS for SMEs) requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and reported amounts of assets,
liabilities, income and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstances,
the result of which form the basis of making the judgment about carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised if the
revision affects only the financial year or in the period of the revision and future periods if the
revision affects both current and future financial years.
33
Information about assumptions and estimation uncertainties that have significant risk of
resulting in a material adjustment within the next financial year are included in the following
notes:
Note 13 - Measurement of defined benefit obligations
1.4
Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented
in these financial statements.
Certain comparative amounts in the financial statements have been reclassified to conform
with the current year’s presentation.
(a)
Foreign currency
i.
Foreign currency transactions
Transactions in foreign currencies are translated in to reporting currency at the rate of exchange
ruling at the date of transaction. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are retranslated to the functional currency at rate of exchange
prevailing at that date. Foreign currency gain or loss on monetary items exchange differences
arising on translation are recognized in the income statement.
(b)
(i)
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation
and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of
self-constructed assets includes the following:
•
cost of materials and direct labour;
•
any other costs directly attributable to bringing the assets to a working condition for
their intended use;
Purchased software that is integral to the functionality of the related equipment is capitalised
as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.
Any gains and losses on disposal of an item of property, plant and equipment is recognised in
the statement comprehensive income.
34
(ii)
Subsequent expenditure
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Company.
(iii)
Depreciation
Items of property, plant and equipment are depreciated on reducing balance method over the
estimated useful lives of each component.
Items of property, plant and equipment are depreciated from the date that they are installed
and are ready for use, or in respect of internally constructed assets, from the date that the asset
is completed and ready for use.
The depreciation rates for the current and comparative periods are as follows:
Buildings
Office equipment
Furniture and fittings
Motor vehicles
Stores equipment
Air conditioner
Cash box
Computer hardware
Communication equipment
Sign board
Steel racks
Electrical fittings
Plant and machinery
Lab equipment
Factory equipment
(c)
6.67% to 10%
15%
15%
25%
25%
12.50%
20%
25%
25%
20%
20%
16%
25%
15%
15%
Leased assets
Leased assets are stated at cost less accumulated depreciation charged on the method of
reducing balance at the rate of 25 % per annum.
(d)
Intangible assets
(i)
Basis of recognition
An intangible asset is recognized if it is probable that future economic benefits that are
attributable to the asset will flow to the entity and the cost of the asset can be measured
reliably in accordance with SLFRS for SMEs. Accordingly, these assets are stated in the
statement of financial position at cost less accumulated amortization and accumulated
impairment losses.
(ii)
Subsequent expenditure
Subsequent expenditure on intangible asset is capitalized only when it increases the future
economic benefits embodied in these assets all other expenditure is expense as incurred.
35
(iii)
Amortization
The useful lives of intangible assets with finite lives are amortized over the useful economic life.
The amortization period and the amortization method for an intangible asset with a finite
useful life are
reviewed at least at each financial year end. Changes in the expected useful life or the expected
pattern of consumption of future economic benefits embodied in the asset are accounted for
by changing the amortization period or method, as appropriate and are treated as changes in
accounting estimates. The amortization expense on intangible assets with the finite lives is
recognized in the statement of comprehensive income.
(iv)
Computer software
Computer software is stated at cost less accumulated amortization. Amortization is done at
50% per annum on cost.
(v)
Impairment
The unamortized balances of intangible assets with finite life are reviewed at each year end
date for impairment when there is an indication for impairment and recognized as expense in
the statement of comprehensive income to the extent that they are no longer probable of the
being recovered from the expected future benefits.
Gains or losses arising from de-recognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are
recognized in the statement of comprehensive income when the asset is de-recognized.
(e)
Investments
(i)
Investment in fixed deposits
Investments in fixed deposits are measured at cost plus accrued interest.
(ii)
Investment in private forestry plots of forestry products
Investment in private forestry plots of forestry products is stated at cost subject to the test of
impairment at each reporting date.
(f)
Inventories
Inventories have been valued at the lower of cost and net realizable value. Cost in generally
determined by reference to weighted average costs. Net realizable value is the estimated selling
price in the ordinary course of business less the estimated selling expense.
(g)
Trade and other receivables are stated at the amounts they are estimated to realize net of
provision for bad and doubtful receivables.
36
(h)
Cash and cash equivalents comprise cash balances and call deposits with maturity of three
months or less from the acquisition date that are subject to an insignificant risk of changes in
their fair value, and are used by the Company in the management of its short-term
commitments.
Cash flow statement
Cash flow statement has been prepared using the indirect method.
(i)
Stated capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
ordinary shares are recognized as a deduction from equity.
(j)
Liabilities and provisions
Liabilities are recognized in the statement of financial position when there is a present obligation
as a result of past events, the settlement of which is expected to result in an outflow of
resources embodying economic benefits. Obligations payable on demand or within one year of
the year end date are treated as current liabilities in the statement of financial position.
Liabilities payable after one year from the year end date are treated as non-current liabilities in
the statement of financial position.
A provision is recognized if, as a result of a past event when the Company has a present legal or
constructive obligation that can be estimated reliably, and it probable that an outflow of
economic benefits will be required to settle the obligation.
(k)
Employee benefits
(i)
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed
contributions in to a separate entity and has no legal constructive obligation to pay further
amounts. Obligations for contributions to defined contribution plans are recognized as an
employee benefit expense in the statement of comprehensive income in the periods during
which related services are rendered services by employees.
(i)
Defined benefit plan
Provision has been made for retirement gratuities from the first year of service of all employees.
However, according to the Gratuity Act No.12 of 1983, payment of the liability arises only on
completion of five years of continued service.
The liability is not externally funded, nor is actuarially valued. The gratuity liability is valued
using a Gratuity Formula. The significant assumptions used are disclosed in Note 13.
(l)
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.
37
(m)
Other income
Other income is recognized on an accrual basis. Other non-operational income such as profit on
sale of equipment is recognized on a cash basis.
(n)
Expenditure recognition
Expenses are recognized in the statement of comprehensive income on the basis of a direct
association between the cost incurred and the earnings of specific items of income. All
expenditure incurred in the running of the business and in maintaining the property, plant and
equipment in a state of efficiency have been charged to income in arriving at the profit for the
year.
(o)
Taxation
(1)
Income taxation
The provision for current taxation has been computed in accordance with the Inland Revenue
Act No. 10 of 2006 and its amendments thereto.
Taxation for the current and previous periods to the extent unpaid is recognized as a liability in
the financial statements. When the amount of taxation already paid in respect of current and
prior periods exceed the amount due for those periods the excess is recognized as an asset in
the financial statements.
(2)
Deferred taxation
Deferred tax is recognised using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and
amounts used for taxation purposes.
Deferred tax is measured at the tax rates that are expected to apply to the temporary
differences when they reverse, based on the laws that have been enacted or substantially
enacted at the yearend date.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will
be available against which the temporary differences can be utilized. Deferred tax assets are
reviewed at each year end date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realised.
Deferred tax assets and liabilities recognized by the Company are disclosed separately as assets
and liabilities in the Company statement of financial position and are not offset against each
other.
(p)
Events occurring after the reporting date
All material events after the reporting date have been considered and where appropriate
adjustments to or disclosures in the financial statements have been made.
(q)
Commitments and contingencies
Contingencies are possible assets or obligations that arise from a past event and would be
confirmed only on the occurrence or non-occurrence of uncertain future events, which are
beyond the Company’s control.
Commitments and contingent liabilities are disclosed in Notes 24 and 25 to the financial
statements.
38
As at 31 March 2014
2 Property, plant and equipment
Cost
Balance as at
Additions
Disposals
1 April 2013 during the year during the year
Rs.
Rs.
Rs.
Freehold
Land
158,984,600
Office and factory building 89,071,988
22,107,695
Office equipment
5,479,145
903,310
Computers
2,399,200
2,610,407
Furniture and fittings
7,075,645
615,249
Motor vehicles
16,710,962
20,620,686
(2,000,000)
Stores equipment
5,881,660
159,775
Sign boards
2,233,300
130,000
Factory equipment
1,595,735
17,529,875
Lab equipment
1,195,008
8,836,191
Plant and machinery
5,253,808
1,386,475
295,881,051
74,899,663
(2,000,000)
Leasehold
Motor vehicle
Plant and machinery
Accumulated depreciation
Freehold
Buildings
Office equipment
Computers
Furniture and fittings
Motor vehicles
Stores equipment
Sign boards
Electrical fittings
Factory equipment
Lab equipment
Plant & Machinery
11,069,776
18,375,000
29,444,776
325,325,827
Balance as at
1 April 2013
Rs.
7,247,660
809,040
473,792
1,481,426
2,900,643
343,641
105,773
9,117
325,901
152,307
13,849,300
1,119,200
1,119,200
76,018,863
-
Charges during
Disposals
the year
during the year
Rs.
Rs.
6,326,195
770,960
759,710
859,441
5,752,860
(1,113,870)
1,400,530
457,560
5,112
1,217,265
993,109
1,627,338
20,170,080
(1,113,870)
39
Transfers
Rs.
-
Balance as at
31 March 2014
Rs.
-
158,984,600
111,179,683
6,382,455
5,009,607
7,690,894
35,331,648
6,041,435
2,363,300
19,125,610
10,031,199
6,640,283
368,780,714
-
12,188,976
18,375,000
30,563,976
399,344,690
Transfers/
write offs
Rs.
-
Balance as at
31 March 2014
Rs.
13,573,855
1,580,000
1,233,502
2,340,867
7,539,633
1,744,171
563,333
14,229
1,543,166
1,145,416
1,627,338
32,905,510
As at 31 March 2014
2
Property, plant and equipment (Contd.)
Accumulated depreciation
Leasehold
Motor vehicle
Plant and machinery
Net book value
As at 31 March
Capital work in
progress (Note 2.1)
Total
Balance as at
1 April 2013
Rs.
Charges during
the year
Rs.
3,167,305
3,167,305
17,016,605
2,112,549
4,581,164
6,693,713
26,863,793
Disposals
during the
year
Rs.
Transfers/
write offs
Rs.
Balance as at 31
March 2014
Rs.
-
5,279,854
4,581,164
9,861,018
42,766,528
(1,113,870)
308,309,222
53,795,334
362,104,556
356,578,162
-
As at 31 March,
-
2014
Rs.
103,135,068
459,713,230
2013
Rs.
2.1
Capital work in progress
Balance as at 1 April 2013
Additions during the year
Balance as at 31 March 2014
53,795,334
49,339,734
103,135,068
53,795,334
53,795,334
3
Intangible assets
Cost
5,522,994
5,522,994
3,955,550
1,567,444
5,522,994
Accumulated amortisation
Amortisation charged for the year
2,389,476
1,562,466
3,951,942
76,068
2,313,408
2,389,476
Net book value
1,571,052
3,133,518
7,500,000
7,500,000
7,500,000
(1,875,000)
5,625,000
1,875,000
(1,875,000)
-
1,875,000
1,875,000
4
Long term investments
Investment in Touchwood Investments PLC
Less: Provision for fall in value (Note 4.1)
4.1
Provision for fall in value
Balance at the beginning of the year
Provision for the year
Provision written back
Balance at the end of the year
40
As at 31 March,
5
5.1
Deferred taxation
Deferred tax liability/ (asset)
Balance as at 1 April
Charge/ (reversal) during the year
Balance as at 31 March
Deferred tax liabilities
Deferred tax assets
2013
Rs.
2,435,183
(720,816)
1,714,366
(988,101)
3,423,284
2,435,183
7,064,570
(5,350,204)
1,714,366
6,368,605
(3,933,422)
2,435,183
Assets
Liabilities
31 March
31 March 2014
2014
Rs.
Rs.
7,064,570
(5,350,204)
(5,350,204)
7,064,570
Employee benefits
Net tax (assets)/ liabilities
6
Inventories
Finished goods
Raw materials
Work in progress
Goods in transit
7
Trade receivables (Note 7.1)
Other receivables (Note 7.2)
7.1
Trade receivables
Trade debtors - Local
Less: Provision for doubtful debtors (Note 7.1 (a))
Project debtors
Trade debtors - Export
7.1(a) Provision for doubtful debtors
Balance at the beginning of the year
Balance at the end of the year
2014
Rs.
41
Net
31 March 2014
Rs.
7,064,570
(5,350,204)
1,714,366
317,967,245
342,215,836
16,000,210
132,554,383
808,737,675
210,730,601
68,874,145
2,376,871
66,738,092
348,719,709
1,032,696,232
17,253,306
1,049,949,538
646,535,825
8,905,459
655,441,284
892,589,709
(19,375,958)
873,213,751
589,098,517
(9,846,599)
(1,447,459)
577,804,459
98,970,692
60,511,790
1,032,696,232
33,246,683
35,484,683
646,535,825
9,846,599
9,529,359
19,375,958
1,338,359
8,508,240
9,846,599
As at 31 March,
7
7.2
Trade and other receivables (Contd.)
Other receivables
LC margin receivable
Interest receivable
Sales credit card
Insurance receivable - Motor vehicle
Staff recoveries - Motor vehicle repair and maintenance
Prepayment of bank charges for 9 Bikes
Short term loan receivable
Staff loans receivable
With Holding Tax - Receivable
Fees Receivable in foreign currency USD
Other receivables
8
Amounts due from related parties
ATLI Industries (Pvt) Ltd (Note 8.1)
Timber Lake International (Pvt) Ltd
Brush Master (Pvt) Ltd
Colombo Kade (Pvt) Ltd
JAT Marina Investments (Pvt) Ltd
JAT Engineering (Pvt) Ltd
D Design (Pvt) Ltd
Crest Marketing (Pvt) Ltd
Jchem Coating (Pvt) Ltd
8.1
ATLI Industries (Pvt) Ltd
Receivable from ATLI Industries (Pvt) Ltd
Net settlements during the year
Transferred to Directors' current account
9
Prepayment of insurance - Motor vehicle
Prepayment of insurance - General
Container deposits
Advance payments - Imports
Advance payments - Clearing
Salary advances
Advance deposits
Advance payments-Insurance & Freight
10
Call deposit
Savings account
Cash at bank
Cash in hand
2013
Rs.
2014
Rs.
1,491,779
257,837
580,751
2,303,113
30,494
140,000
7,471,124
402,940
3,210,945
1,364,323
17,253,306
3,458,717
1,882,904
255,947
24,660
4,247
160,000
3,118,984
8,905,459
216,625
1,954,390
137,281
89,127,278
1,930,581
3,488,498
26,846,651
123,701,304
82,620
14,723,831
731,839
40,000
120,723
46,775,402
402,981
62,877,396
46,881,616
311,874
410,911
940,028
40,807,596
4,037,761
177,709
13,738,327
18,970
107,324,792
80,558
11,731,106
7,921,430
7,095,230
26,828,324
Bank overdraft
(108,177,891)
Net cash and cash equivalents for the purpose of the Statement of cash flows
(81,349,567)
42
14,896,818
(9,396,114)
(1,897,480)
(3,603,224)
7,579,351
307,558
486,277
412,806
1,673,694
86,917
70,670
2,075,679
12,692,952
78,771
4,947,389
42,941,976
2,284,636
50,252,772
(18,864,678)
31,388,094
As at 31 March,
11
Stated capital
443,716,000 Ordinary shares
12
Obtained during the year
Paid during the year
2013
Rs.
2014
Rs.
628,770,000
628,770,000
Interest in suspense
Interest charged during the year
900,000
900,000
25,628,236
1,169,203
(13,763,387)
13,034,053
5,396,662
27,297,836
(7,066,262)
25,628,236
2,250,322
362,897
(1,915,976)
697,243
12,336,810
357,010
3,452,640
(1,559,328)
2,250,322
23,377,914
2,589,179
9,747,631
12,336,810
11,622,322
11,755,592
23,377,914
12.1
12.2
Lease payable after one year
Lease payable within one year
13
13.1
Employee benefits
Defined contribution plans
Following contributions have been made to the Employees' Provident Fund and Employees'
during the year.
Employees' Provident Fund
Employers' contribution
5,751,030
Employees' contribution
3,834,020
Employees' Trust Fund
1,437,757
13.2
Defined benefit plan
Current service cost
Interest cost
Actuarial gain
Payments during the year
14,047,935
3,082,275
1,343,719
633,942
19,107,871
43
Trust Fund
4,407,364
2,938,243
1,100,708
11,920,418
2,284,345
1,153,471
(971,198)
(339,101)
14,047,935
As at 31 March 2014
13
13.2
Employee benefits (Contd.)
Defined benefit plan
Provision has been made for retiring gratuity for all employees. However, under the Payment of Gratuity
Act No. 12 of 1983, the liability to an employee arises only on completion of 5 years of continued service.
The liability is calculated based on the Gratuity Formula method.
The following key assumptions were made in arriving at the above figure using the Gratuity Formula:
Discount rate is 10% per annum (2013: 11%)
Salary increment rate is 16% per annum (2013: 12.5%)
Retirement age is 55 years
Staff turnover factor is 17.5% per annum (2013: 17%)
The Company will continue as a going concern.
13.3
Number of employees
Number of employees of the Company as at 31 March 2014 was 232 (2013: 209).
As at 31 March,
14
Long term loan
Loan obtained during the year
Repayments during the year
14.1
14.2
Loan payable due after one year
Loan payable due within one year
15
Trade and other payables
Trade payable (Note 15.1)
Other payable (Note 15.2)
Accrued expenses (Note 15.3)
15.1
Trade payable
Foreign creditors
Trade creditors
Other creditors
Project creditors
Staff creditors - Retention
Local payable
15.2
Other payable
Import loan
Advance received - Others
Security deposits - Sales
Other advances
2014
Rs.
44
2013
Rs.
15,866,664
20,000,000
(9,233,458)
25,776,656
17,000,000
(1,133,336)
15,866,664
12,376,448
13,400,208
25,776,656
12,466,656
3,400,008
15,866,664
472,969,676
281,643,307
108,856,659
863,469,643
245,039,421
149,383,200
47,833,175
442,255,796
361,355,618
57,770,134
30,703,864
14,926,809
7,632,245
581,006
472,969,676
204,446,903
33,961,363
1,396,318
5,234,837
245,039,421
280,308,604
28,520
1,306,184
281,643,307
147,856,138
77,571
28,520
1,420,971
149,383,200
As at 31 March,
15
15.3
Trade and other payables (Contd.)
Accrued expenses
VAT payable
NBT payable
ESC payable
EPF payable
ETF payable
PAYE payable
Salary payable
Building maintenance
Sales commission payable
Audit fees payable
Other payables
Dividend Payable
16
Amounts due to related parties
J Chem Coating (Pvt) Ltd
Amount due to Directors
17
Income tax payable
Payments made during the year
ESC recoverable
WHT recoverable
Dividend tax (paid)/payable
Over provision in respect of previous years
2014
Rs.
18
Revenue
Local sales
Export sales
Fees received in foreign currency
19
Other income
Sundry income
Vehicle rent income
Rent income
Income - colour card
Income - supplier registration
Vehicle disposal gain - Bikes
Foreign exchange gain
2,190,259
6,886,002
487,508
875,886
131,383
346,932
1,315,482
7,799,999
800,000
22,413,208
65,610,000
108,856,659
9,639,334
986,858
249,888
759,801
113,970
345,995
10,030,508
188,816
5,600,000
1,049,007
18,868,998
47,833,175
19,833,515
19,833,515
324,404,103
8,483,902
332,888,005
24,156,581
55,159,371
(37,995,413)
(1,307,607)
(117,065)
39,895,867
22,894,538
30,925,737
(20,371,940)
(754,339)
(175,985)
1,269,000
(9,630,430)
24,156,581
2014
Rs.
45
2013
Rs.
2013
Rs.
2,417,162,113
523,042,939
65,178,939
3,005,383,991
1,705,124,079
329,571,650
98,886,176
2,133,581,905
4,630,112
561,296
1,389,001
29,346
3,000
338,870
10,311,703
17,263,328
5,389,973
1,009,934
500,000
35,452
35,250
35,000
11,510,937
18,516,546
2014
Rs.
20
Results from operating activities
Operating profit before taxation is stated after charging all expenses including the following:
Directors' emoluments
Auditors' remuneration
Depreciation
Amortization
Provision for bad and doubtful debt
Write off of slow moving inventory
Salaries and wages
Defined contribution plan cost
Employees' Provident Fund
Employees' Trust Fund
Defined benefit plan cost - Retiring gratuity
21
21.1
Net finance costs
Finance income
Interest income
21.2
Finance costs
Overdraft interest
Bank charges
Import loan interest
Interest on leases
Credit card commission
Stamp duty
Loan interest
Net finance costs
22
22.1
22.2
2013
Rs.
Tax expense
Current tax expense
Current period
Over provision in respect of prior years
Deferred tax Charge/ (reversal) during the year
19,314,020
1,012,000
26,863,793
1,562,466
9,529,359
50,555,650
17,723,108
1,000,000
8,771,592
2,313,408
8,508,240
8,555,151
1,447,459
38,605,437
5,751,030
1,437,757
5,059,936
4,407,364
1,100,708
2,466,618
1,612,163
1,612,163
2,785,100
2,785,100
10,251,573
4,832,479
22,808,467
1,915,976
646,950
3,551,846
3,125,289
47,132,580
(45,520,417)
5,506,743
2,873,046
11,527,814
1,559,328
303,150
541,314
992,892
23,304,287
(20,519,187)
55,159,371
30,925,737
(9,630,430)
(720,816)
3,423,284
54,438,555
24,718,591
The liability for taxation has been computed in accordance with the Inland Revenue Act No. 10 of 2006 and
its amendments thereto.
46
22
22.3
Tax expense (Contd.)
Reconciliation of the accounting profit and income tax expense
Exempt Profit of JAT Paints
JAT Profit before taxation
Disallowable expenses
Allowable expenses
Income considered separately - Interest income
Exempted profit
Add: Interest income (Gross)
Statutory income
Taxable income
Tax on profits from sale of rubber based products (15%)
Tax on balance taxable income (28%)
Income tax on current year profits
23
23.1
2014
Rs.
460,107,622
(4,474,891)
464,582,513
26,146,086
(59,722,397)
(1,612,163)
(200,377,510)
1,540,055
230,556,585
230,556,585
2013
Rs.
379,756,576
22,617,667
(59,838,924)
(2,785,100)
(198,839,257)
2,759,290
143,670,252
143,670,252
10,842,084
44,317,287
55,159,371
5,167,741
25,757,996
30,925,737
Related party transactions
Transactions with key management personnel
The Company considers its Board of Directors as the key management personnel. Compensation paid to
key management personnel are as follows:
2013
2014
Rs.
Rs.
Short term employee benefits
19,314,020
17,723,108
47
23 Related party transactions (Contd.)
23.2 Transactions with related parties
The aggregate value of transactions relating to entities over which key management personnel have control or significant influence over were as
follows:
Name of the Company
ATLI Furniture (Pvt) Ltd
Nature of transaction
Sales
Set off of receivables against payables
Fund transfer
Expenses
Transferred to Directors' current account
Timber Lake International (Pvt) Ltd
Expenses
Brush Master (Pvt) Ltd
Expenses
Fund transfer
Import loan recovery
Purchases from the Company
Sales to the Company
Transaction
amount
2014
Rs.
-
-
47,610
216,625
82,620
776,851
16,499,897
1,613,981
(13,690,425)
11,309
1,954,390
14,723,831
Expenses
731,839
JAT Marina Investments (Pvt) Ltd
Current AC settlement
(40,000)
JAT Engineering (Pvt) Ltd
Expenses
Fund transfer
Sales
Payments received
Salaries
Expenses
16,558
284,967,254
(243,143,485)
500,000
28,107
48
-
134,005
Colombo Kade (Pvt) Ltd
1,796,114
(11,974,578)
(1,897,480)
(1,920,000)
2,702,350
(3,603,224)
1,443,256
11,286,124
(25,498,821)
21
Transaction
amount
2013
Rs.
Balance
outstanding
Balance
outstanding as
as at
at
31
31 March
2014
March 2013
Rs.
Rs.
691,839
109,175
(998,452)
-
731,839
-
40,000
137,281
120,723
89,127,278
46,775,402
2,571,799
200,000
-
23 Related party transactions (Contd.)
23.2 Transactions with related parties
Name of the
Company
J Chem Coatings
(Pvt) Ltd
Nature of transaction
Expenses incurred on behalf of J Chem Coatings (Pvt) Ltd
Payments on behalf of J Chem Coatings (Pvt) Ltd
Fund transfer
Payments on behalf of JAT Holdings (Pvt) Ltd
Sales
Purchases
Stock purchase
Assets transferred to the Company
Vehicle disposals
Debtors
Share Capital
Transaction
amount
2014
Rs.
Transaction
amount
2013
Rs.
11,381,344
21,899,606
13,357,897
(3,800,000)
7,901,907
300,510,000
(1,035,838)
(30,663,971)
(50,192,883)
26,203,504
2,579,396
(4,677,288)
47,675,970
99,404,076
15,000
Crest Marketing
(Pvt) Ltd
Expenses
Fund transfer
655,498
2,833,000
D Design (Pvt) Ltd
Expenses
1,527,601
22
49
-
Balance
outstanding
as at 31
March 2014
Rs.
Balance
outstanding as
at 31 March
2013
Rs.
26,846,651
(324,404,103)
3,488,498
1,930,581
402,981
24
Commitments
There were no commitments outstanding as at the reporting date.
25
Contingent liabilities
The Company has no significant contingent liabilities as at 31 March 2014 which require
adjustments to or disclosure in the financial statements.
26
Litigation and claims
There are no litigations or claims against the Company as at the reporting date.
27
Comparative information
Comparative figures have been rearranged to confirm to the year ended 31 March 2014
classification.
28
Events after the end of the reporting period
The Directors have recommended the payment of Rs. 89,367,627/- as final dividend in
accordance with Section 32 - "Events after the end of the reporting period". This proposed
dividend has not been recognised as a liability as at 31 March 2014.
There were no material events occurring after the reporting date which require adjustments to
or disclosures in the financial statements other than what is disclosed above.
29
Board of Director's responsibility
The Board of Directors are responsible for the preparation and presentation of these financial
statements in accordance with Sri Lanka Accounting Standard for Small and Medium- sized
Entities (SLFRS for SMEs).
30
Approval of financial statements
These financial statements were approved by the Board of Directors and authorized for issue on
31 July 2014.
50
CSR
In a noble gesture to prevent maternal deaths during pregnancy from
occurring in Sri Lanka, JAT Holdings has commenced the design and
development of the estimated Rs.30 million, state-of-the-art JAT Training
and Simulation Centre to be set up under the auspices of the College of
Obstetricians & Gynecologists of Sri Lanka (SLCOG.)
Sri Lanka’s maternal mortality rate of 35 for every 100,000 live births (CIA
World Fact Book) compared to most other developing nations is highly
commendable, we cannot rest on these laurels but must endeavor to
reduce it to zero. Sri Lanka is almost unique in that we investigate
thoroughly every maternal death. We have learnt from these
investigations that a sizeable number of these deaths are preventable.
The JAT Training and Simulation Centre will be equipped with the latest
robotic mannequins from USA, who can mimic any complication that a
pregnant mother can have.
Continuing in its support as part of its multi – faceted corporate social
responsibility projects, the ultimate goal of JAT together with the SLCOG is
not merely to reduce to zero the number of maternal deaths but also to
educate and empower those concerned in self-help methods and to
prevent the destructive aftermath such deaths invariably leave in their
wake; namely dispossessed children who are often abused and exploited,
overburdened grandparents and more often than not absentee fathers. All
of which combine to shred the social fabric of our society that has for
centuries been deeply matriarchal.
“JAT Holdings has commenced the
design and development of the
estimated Rs.30 million, state-of-the-art
JAT Training and Simulation Centre”
51
FORM OF PROXY
PROXY FORM
I/We…………………..……………………………………………………………………………..of……………………………………
……………………………………………………………….being a member/s of the above named company
hereby appoint
Dr. Sivakumar Selliah
Mr. Aelian Winston Gunawardene
Mr. Indika Kushan Palinda Chandrasekara
Mr. Somasundaram Sivasubramaniam
Mr. Ambagahapathirage Lakmal Gayan Perera
Mr. Jehan Prasanna Amaratunga
of Colombo, whom failing
of Thalawathugoda, whom failing
of Thalawathugoda, whom failing
……………………………………………………………………………………………………….of………………………………………
……………………………………………………………..as my/our proxy, to represent me/us to vote on my/our
behalf at the first Annual General Meeting of the Company to be held on Monday 25th August,
2014 at No 351, Pannipitiya Road, Thalawathugoda at 4.00 p.m and at any adjournment thereof,
and at every poll which may be taken in consequence thereof.
signed this………………................……….................
.....……………………………
SIGNATURE AND DATE
INSTRUCTIONS AS TO COMPLETION
i)
The full name and the address of the proxy and of the shareholder appointing the proxy
should be entered legibly in the form of proxy.
ii)
In the case of a Corporation/Company this proxy shall be under its Common Seal duly
signed.
iii)
The complete form of proxy should be deposited at the Registered Office of the Company
RNH Holdings (Pvt) Ltd., not less than 24 hours before the time appointed for the holding
of the Meeting.
52
NOTICE OF MEETING
Notice is hereby given that the first Annual General Meeting of JAT Holdings (Private) Limited will
be held at the Main Board Room of JAT Holdings (Private) Limited, No 351, Pannipitiya Road,
Thalawathugoda on 25th August, 2014 at 4.00 p.m to transact the following business.
1.
To receive and adopt the Annual Report of the Board of Directors and Financial
statement of the company for the year ended 31st March 2014 together with the report
of Auditors thereon.
2.
To appoint Auditors and authorize the Directors to determine their remuneration.
3.
To authorize the Directors to determine contributions to charities for the financial year
ending 31st March 2015.
4.
To declare dividends as determined by the Directors.
5.
To transact any other business of which due notice has been given.
By order of the Board
RNH Holdings (Private) Limited
Company Secretaries
Colombo
25th August, 2014
Note: A member entitled to attend and to vote at the above mentioned meeting is entitled to
appoint a proxy who need not also be a member, to attend instead of him. A form of Proxy
accompanies this notice.
53
NOTES
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No. 351, Pannipitiya Road,Thalawathugoda, Sri Lanka.
Phone: +94 11–4407700 | Fax: +94 11 – 2773793
E mail: [email protected] | Web: www.jatholdings.com

ANNUAL REPORT 2014_2015 FINAL

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