Free Essay

Analysis on Company

In: Business and Management

Submitted By shane89
Words 22933
Pages 92
Contents:
Vision, Culture and values
Financial highlights
Profile of the Directors
Chairman’s review
Corporate Governance
Audit Committee Report
Remuneration Committee Report
Risk Management
Report of the Board of Directors
Statement of Directors’ Responsibility
Independent Auditors’ Report
Income Statement
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statement
Segmental Report
Details of Real Estate
Five Year Summary
Shareholder Information
Notice of Annual General Meeting
Proxy Enclosed
Corporate Information ( inner back cover)

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51 - 53
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Vision
To be a leading investment trust in Sri Lanka

Culture and Values
Renuka’s culture reflects more than just structure. It is statement of values.
Our commitment to a responsive, enterprising, nurturing, unrelenting, knowledgeable and accountable workplace enables us to build our relationships, with clients and with colleagues, on honesty and trust. It drives our ability to deliver great products and services and to generate superior long term financial performance for our shareholders.
The 6 letters of our Group name symbolizes the 6 core values that make up our culture.
The stylized shape of Sri Lanka is also reminiscent of pods or coconuts, with the letter “R” embedded representing Renuka in Sri Lanka.
Our corporate motto is “World Class Possibilities” reflecting our international standards of excellence and the opportunities that Renuka presents.

1

Coco Lanka PLC
FINANCIAL HIGHLIGHTS

2

Coco Lanka PLC
PROFILE OF THE DIRECTORS
Dr S. R. Rajiyah

Mr S. Vasantha Kumara

Dr S.R.Rajiyah is the Chairman of the Company. He is also the Chairman of Renuka Agri Foods PLC, Shaw
Wallace Ceylon Ltd, Director of Richlife Dairies Ltd,
Renuka Holdings PLC and the Managing Director of
Renuka Group. He is a medical doctor qualified in
Sri Lanka and counts over 35 years of corporate experience in operations, quality management, research and development as well as in founding and running businesses.

Mr S.Vasanthakumara is an Non Executive Director of the Company. He holds a Bachelor of Engineering Degree from the Mangalore University. He counts over 26 years of industrial work experience, out of which, 15 years have been with the Renuka Group of Companies. He has extensive experience in supply chain management and overall general management functions. He is Chief
Operating Officer of Renuka Agri Foods PLC and Director of Shaw Wallace Ceylon Ltd & Richlife Dairies Ltd.

Mr I. R. Rajiyah

Mr. C. J. De S. Amaratunge

Mrs. I.R. Rajiyah is an Executive Director of the
Company. She is qualified in Business Studies from the United Kingdom and is a fellow of the British
Institute of Management. She counts over 35 years of corporate experience in founding and running businesses. She was presented with the Best Women
Exporter Award in 2009 by the National Chamber of
Exporters Sri Lanka. She is also the Chairperson of
Renuka Holdings PLC and Director of Renuka Agri
Foods PLC, Shaw Wallace Ceylon Ltd, Richlife Dairies
Ltd and several un-listed companies.

Mr. C.J.De.S.Amaratunge is an Independent, Non
Executive Director of the Company. He is an Attorney at law and Notary Public and was called to Bar in
1967. He is the Senior Partner of M/s Dissanayake
Amaratunge Associates, Attorney at Law, Notaries
Public and Solicitors. He counts over 40 years experience in all civil branches of the law including
Commercial Corporate Convenyancing and Litigation and Convenyancing. He is the Chairman of Richlife
Dairies Ltd and serves as a Director on several boards of both private and public companies.

Mr S. V. Rajiyah

Mr L. M. Abeywickrama

Mr. S.V.Rajiyah is an Executive Director of the
Company. He is also an Executive Director of Renuka
Holdings PLC and Renuka Agri Foods PLC. He is the
Managing Director of Shaw Wallace Ceylon Ltd,
Richlife Dairies Ltd and joint Managing Director of
McShaw Automotive Ltd. He also heads the Business
Development, International Marketing and
Investment Division of the Group. Mr Rajiyah is a graduate in Management from the Warwick Business
School, University of Warwick, United Kingdom. His direct interest includes corporate strategy, key product and brand development and portfolio management. He has over 10 years experience in
General Management.

Mr. L.M.Abeywickrama is an Independent Non
Executive Director of the company. He is a
Management consultant and trainer with over 25 year’s management experience in the private sector both Sri Lanka and Overseas. He holds a Bachelors
Degree in Science from the University of Colombo, a
Post Graduate Diploma in Marketing from the
Chartered Institute of Marketing and MBA from the
American University Washington DC. He is a fellow of the Chartered Institute of Marketing and a past chairman of the CIM Sri Lanka region. He serves as the Director on the Board of Renuka Agri Foods PLC,
Shaw Wallace Ceylon Ltd & Richlife Dairies Ltd.
Mr T. K. Bandaranayake
Mr. T.K. Bandaranayake is an Independent NonExecutive Director of the Company. He is a Fellow
Member of the Institute of Chartered Accountants of
Sri Lanka. He was in public practice with Ernst& Young for 27 years since 1982. He was a Senior Partner managing a large portfolio of clients. He is also a
Director of Renuka Holdings PLC, Nawaloka Hospitals
PLC, Overseas Realty (Ceylon) PLC, Samson
International PLC, Laugfs Gas PLC, Central Finance
Co. PLC, Harischandra Mills PLC, Micro Holdings Ltd.
& DFCC Bank. He serves as an Advisor to the Audit
Committee of DFCC Vardhana Bank and a Consultant to the Board of Noritake Lanka Porcelain (Pvt) Ltd. He is also the Chairman of the Quality Assurance Board established by the Institute of Chartered Accountants of Sri Lanka comprising senior members of the profession and representatives of the relevant regulatory bodies.

3

Coco Lanka PLC
CHAIRMAN’S REVIEW
I take great pleasure in welcoming you to the 22nd Annual General Meeting of Coco Lanka PLC and present the Annual Report of the Directors on the affairs of the Company and the Audited Accounts for the year ended 31st March 2012.
The Market
The year under review has been a challenging one given the vagaries of the stock market. The
Colombo Stock Market reflected this with negative returns in respect of the year under review against the backdrop of economic realignment after two years of growth in post war Sri Lanka. The key factor being the higher interest rates prevailing presently has shifted investor funds from equity investments to interest bearing instruments. The bear market sentiments resulted in the decline of 25% of the bench mark All Share Price Index and a decline of 28.8% of the Milanka Index during the period.
The Company
At Company level the turnover achieved was Rs 39.5 Mn (sale of shares was only Rs 8.8 Mn as against
Rs 775.8 Mn in the previous year) as against Rs 808Mn achieved in the previous year due to the prevailing sentiments in the Stock Market. This was the main reason as to why your Company made a profit of only Rs 11 Mn for the year ended 31st March 2012 as against the profit of Rs 230.5 Mn for the corresponding year. However at Group level your Company has recorded a profit of Rs 301.7 Mn for the year under review as against Rs 227.5 Mn we recorded in the corresponding year. The growth was 32.6%. We were able to achieve this, through the Agri business sector which was the single largest contributor.
The Future
We believe the long term development potential of Sri Lanka will eventually flow through the equity market where market capitalization to GDP is currently only 33% compared to more matured markets which can exceed 100%. During the year Coco Lanka PLC invested in a 50% shareholding in
Coco Hotels & Properties (Pvt) Ltd which is earmarked for a flag ship property development project in Colombo 3.
I express my gratitude to the management team and staff for their dedication, loyalty and hard work. I also thank my colleagues on the Board for providing valuable guidance and advice. It is also my duty to thank all the shareholders and stakeholders for their support and co-operation.
Dr S.R.Rajiyah
Chairman
8th August 2012

4

Coco Lanka PLC
CORPORATE GOVERNANCE
Coco Lanka PLC is the holding company of Renuka Agri Foods PLC and Coco Hotels and Properties
(Pvt) Ltd. and its subsidiaries .The businesses of the subsidiaries are given on pages 25 of this report. We set below the Corporate Governance practices adopted and practiced by Coco Lanka PLC against the background of the Code of Best Practice on Corporate Governance issued by the Institute of
Chartered Accountants of Sri Lanka and the rules set out in Section 6 of the Colombo Stock Exchange
Listing Rules and also complies with the Country’s Legislative and Regulatory requirements.
THE BOARD OF DIRECTORS
The Company’s business and operations are managed under the supervision of the Board, which consists of members with experience and knowledge in the areas of business, in which the company is engaged with specific acumen in terms of commercial, financial and or technical expertise in relation to information and communications technology management.
BOARDS RESPONSIBILITIES
Strategic Direction: The Board provides good stewardship vision and strategic direction to the institution whilst transparency and accountability is maintained. The Board also reviews and monitors the Company’s activities.
Business Performance: Reviews Business Results on a regular basis and guides the management on and appropriate direction in achieving forecast results.
Management Risk: A risk management system was developed and periodically reviewed. Review of the risk management is depicted on pages 10 to 12.
Code of Business Conduct and Ethics: The Code of Conduct and Ethics are clearly defined from the
Board of Directors downwards to every employee.
Financial Performance of the Company: The Board sits once in three months to review the financial performance of the company. The Quarterly Accounts are reviewed by the Audit Committee before recommending to the Board of Directors to consider for adoption and release to the public.
Recommending of final dividends are considered and recommended by the Board of Directors.
Investor Rights and Relations: The Company communicates regularly with its shareholders updating them on the company’s position and performance through the quarterly reports.
The Annual Report provided a comprehensive assessment of the company’s performance during the year.
Audit: An independent statutory audit is carried out annually and the appointment of auditors M/s
KPMG, Chartered Accountants for the ensuing year is recommended to the shareholders at the
Annual General Meeting.

5

Coco Lanka PLC
COMPOSITION AND ATTENDANCE AT MEETINGS
The Board of Directors, Audit committee and Remuneration committee meet quarterly to discharge its duties effectively. The table below shows the attendance of Directors to the Board meetings and committee meetings.
Name of Director
1.
2.
3.
4.
5.
6.
7.

Dr S.R.Rajiyah
Mrs I.R.Rajiyah
Mr S.V.Rajiyah
Mr S.Vasanthakumara
Mr C.J.De.S.Amaratunge
Mr T.K.Bandaranayake
Mr L.M.Abeywickrama

Board Meeting

Audit Committee
Meeting

Remuneration
Committee meeting

4/4
4/4
4/4
4/4
4/4
4/4
3/4

4/4
4/4
3/4

1/1
1/1

BOARD BALANCE:
The Board as at the date of this statement consists of seven members of which four members are
Non-Executive Directors and three are Executive Directors. Three Non Executive Directors are independent as defined under the Listing Rules of the Colombo Stock Exchange.
There is a Board balance and complies with the independent Directors criteria set out under Listing
Rules of the Colombo Stock Exchange. Together, the Directors with their wide experience in both the public and private sectors and diverse academic backgrounds provide a collective range of skills, expertise and experience which is vital for the successful direction of the Group. A brief profile of each Director is presented on pages 3.
There is a distinct and clear division of responsibilities between the Chairman and the Management to ensure that there is a balance of power and authority. The roles of the Chairman and the
Management are separated and clearly defined. The Chairman is responsible for ensuring Board effectiveness and conduct whilst the Management has overall responsibilities over the operating units, organizational effectiveness and implementation of Board policies and decisions.
SUPPLY OF INFORMATION
The Directors are provided with quarterly reports on performance, minutes of quarterly meetings and such other reports and documents as are necessary. The Chairman ensures all Directors are adequately briefed on issues arising at Meetings.
RE-ELECTION OF DIRECTORS
The provision of the Company’s Articles of Association requires that one third of the Non Executive
Directors retire at each Annual General Meeting and the Directors who retire are those who have served for the longest period after their appointment/re-appointment
GOING CONCERN
The Directors, after making necessary inquiries and reviews including reviews of the Group’s budget for the ensuing year, capital expenditure requirements facilities, have a reasonable expectation of the Company’s existence in the foreseeable future. Therefore, the going concern basis is adopted in the preparation of the Financial Statements.

6

INTERNAL CONTROL
The Board is responsible for the company’s internal controls and for reviewing their effectiveness.
Internal control is established with emphasis placed on safeguarding assets, making available accurate and timely information and imposing greater discipline on decision making. It covers all controls including financial, operational and compliance control and risk management. It is important to state, however that any system can ensure only reasonable and not absolute, assurance that errors and irregularities are prevented or detected within a reasonable time.
COMMUNICATION WITH STAKEHOLDERS
Shareholders are provided with Quarterly Financial Statements and the Annual Report, which the
Group considers as its principal communication with them and other stakeholders. These reports are provided to the Colombo Stock Exchange.
BOARD COMMITTEES
To assist the Board in discharging its duties various Board Committees are established. The functions and terms of references of the Board Committee are clearly defined and where applicable, comply with the recommendations of the Code of Best Practice on Corporate Governance.
AUDIT COMMITTEE
The Audit Committee reviews issues of accounting policy and presentation for external audit function and ensures that an objective and professional relationship is maintained with the external auditors. Its principal function is to assist the Board in maintaining a sound system of internal control. The Committee has full access to the external auditors who, in turn, have access at all times to the Chairman of the Committee. The Committee meets with the external auditors without any executive present, at least once a year, in line with good corporate governance practice.
The report of the Audit Committee is presented on page 8 and the duties of the Audit Committee are included therein.
REMUNERATION COMMITTEE
The Remuneration Committee is responsible for developing the Groups remuneration policy and determining the remuneration packages of executive employees of the Group. The Committee recommends to the Board and its subsidiaries the remuneration to be paid to key Management
Personnel.
CORPORATE GOVERNANCE DISCLOSURE
The Company has published quarterly financial statements with the necessary explanatory notes as required by the Rules of the Colombo Stock Exchange and the Securities and Exchange Commission of Sri Lanka to all stakeholders. Any other financial and non financial information, which is price sensitive or warrants the shareholders and stakeholder’s attention and consideration, is promptly disclosed to the public.
MAJOR TRANSACTIONS
There are no transactions during the year under review which fall within the definition of ‘Major
Transaction’ in terms of the Companies Act, except disclosure in this report.

7

Coco Lanka PLC
AUDIT COMMITTEE REPORT
The Audit Committee is appointed by the Board of Directors of the company and reports directly to the Board. The Audit Committee consists of three members who are independent non-executive directors. The Chairman of the Audit Committee is a Fellow of the Institute of Chartered Accountants of Sri Lanka. The compositions of the members of the Audit Committee satisfy the criteria as specified in the Standards of Corporate Governance for listed companies. Managing Director, Head of Finance and Company Secretary attends the Audit Committee meeting by invitation.
The Members of the Audit Committee and their attendance at meetings are:
Name
Mr T.K.Bandaranayake
Mr C.J.De.S.Amaratunge
Mr L.M.Abeywickrama

Independent (all are non executive Directors)
Independent
Independent
Independent

Attendance
4 of 4
4 of 4
3 of 4

The oversight function of the preparation, presentation and adequacy of disclosures in the quarterly and annual financial statements of the Group, in accordance with Sri Lanka Accounting Standards and the Company’s compliance with financial reporting requirements, information requirements of the Companies Act and other relevant financial reporting related to regulations and requirements, were duly performed and the Audit Committee reviewed and discussed the quarterly and year end financial statements and recommended their adoption to the Board.
The Audit Committee also ensures that the Company’s internal controls and risk management, are adequate to meet the requirements of the Sri Lanka Auditing Standards was duly performed and the Audit Committee reviewed and discussed the business risk management processes and procedures adopted by the Group, to manage and mitigate the effects of such risks and measures taken to minimize the impact of such risks.
The Audit Committee was briefed by the external auditors Messrs KPMG, Chartered Accountants on the progress and the conduct of the statutory audit and discussed audit related issues with them.
The Audit Committee assessed the independence and performance of the Company’s external auditors and made recommendations to the Board pertaining to appointment/re-appointment.
The Audit Committee also reviewed the audit fees for the Company and approved the remuneration and terms of engagement of the external auditors and made recommendations to the Board. When doing so, the Audit Committee reviewed the type and quantum of non audit services (if any) provided by the external auditors to the Company to ensure that their independence as Auditors has not been impaired.
The Audit Committee has recommended to the Board that Messrs’ KPMG, Chartered Accountants, be re- appointed as external auditors of the Company for the financial year ending 31st March 2013, subject to approval by the shareholders at the Annual General Meeting.
Sgd T.K.Bandaranayake
Chairman – Audit Committee
8th August 2012

8

Coco Lanka PLC
REMUNERATION COMMITTEE REPORT
The Remuneration Committee of Coco Lanka PLC consists of three Non Executive Directors and the
Managing Director may also be invited to join in the deliberations as required.
The Committee studies and recommends the remuneration and perquisites applicable to the Key
Management personnel of the Company and makes appropriate recommendations to the Board of
Directors of the Company for approval.
The Group policy on remuneration packages is to attract and retain the best professional managerial talent to the Group and also to motivate and encourage them to perform at the highest possible level. The Group has a structure and professional methodology in evaluating the performance of employees. The policy ensures equity and fairness between the various employees is maintained, no discrimination is practiced on account of gender age, ethnicity or religion, recognizes the basic needs of staff and ensures that compensation addresses cost of living and inflation, particularly in the lower income groups.
The Committee studies and recommends the remuneration and perquisites applicable to the Key
Management Personnel of the Group and makes appropriate recommendations to the Board of
Directors of the Company for approval.
The Committee also carries out periodic reviews to ensure that the remunerations are in line with market conditions.
Sgd C.J.De.S.Amaratunge
Chairman Remuneration Committee
8th August 2012

9

Coco Lanka PLC
ENTERPRISE RISK MANAGEMENT
Risk management is an integral part of our business, since balancing risks against returns is a critical trade off decision we have to make every day when it comes to investment decision making. We have in place several measures to strengthen our risk management processes which are linked to our daily investment decisions. These include policies to mitigate business risks along with the upgrading of the support systems that enable easy monitoring and management risks.
We reviewed and refined our investment processes balancing rigor and consistency with responsiveness and flexibility. The aim was to lay a sound foundation to integrate our risk management activities as part and parcel of our operations.
Internal controls
The Company maintains a system of internal controls designed to provide a high degree of assurance regarding the effectiveness and efficiency of operations, the adequacy of safeguards for assets, the reliability of financial controls, and compliance with applicable laws and regulations.
Business Risk
The business risk management is a dynamic process due to the constant change and complexity in the operating environment of the Group. The different business operations of the Group and their performance are subject to a variety of risk factors which are constantly monitored and evaluated by the management in order to respond effectively. The manufacturing facilities are maintained according to best international food manufacturing standards.
Competitive environment
Our businesses are highly competitive. Failure to compete with competitors on areas including price, product range, quality and service would have an adverse effect on the Group’s financial results. Hence we aim to have a broad appeal in price, range and format in a way that allows us to compete effectively in different markets.
People capabilities
Our greatest asset is our employees. It is critical to our success to attract, retain, develop and motivate the best people with the right capabilities at all levels of operations. We review our people and policies regularly and are committed to investing in development and incentives for our people. There are clear processes for understanding and responding to employees’ needs through HR initiatives, and communication of business developments.
Health and safety risks
The safety of our staff and customer is of paramount importance to us. We operate stringent health and safety processes in line with best practice in our manufacturing facilities, stores and offices.
IT systems and infrastructure
The business is dependent on efficient information technology (IT) systems. We recognize the essential role that IT plays across our operations in allowing us to trade efficiently through the implementation of effective IT solutions. We have extensive controls in place to maintain the integrity and efficiency of our IT infrastructure and to ensure consistency of delivery, and all relevant staff is effectively engaged to mitigate IT related risks through effective policy and procedures as well as increased awareness.
Interest rate and Exchange rate risk
It is the Company’s objective to limit its exposure to changes in interest and exchange rates while retaining the opportunity to benefit. Accordingly the Group manages interest and exchange rate fluctuations with an appropriate mix of fixed and variable rate debts, forward contracts through a centralized treasury management function.

10

Market risk
A broad definition of market risk is exposure to adverse movements in the securities markets for both equity and fixed income investments, which can result in value loss as well as variations in the anticipated returns from those securities. All financial institutions face market risks, created by changes in the macro environment related to political factors, national security economic management and globalization influences which have an impact on systematic risk factors such as interest rates, currency parity, inflation, and availability of credit. Therefore, understanding market risks requires considering multiple dimensions and complexity in the macro environment.
Market risks are inherent in every security and are thus collectively considered at the portfolio level to take into account the asset allocation decisions of the portfolio. Thus market risks affecting a particular class of security are mitigated by switching to asset classes that are assessed to be less risky in a particular scenario.
General Securities Risk
Any trading in securities carries inherent investment risks, associated with the entity issuing those securities, in particular the price of value of any security can and does fluctuate and may even become valueless, resulting in possible loss not only of returns and profits but even also of all or part of the principal sums invested. These risks arise as a result of the overall risks faced by the issuing entity which affects its ability to provide a return to the investors holding the securities issued by it. Particularly in the case of equities past performance of any investment is not necessary indicative of future performance.
At Coco Lanka PLC our approach focuses on the fact that there is no substitute for fundamental individual security assessment. Our portfolio management and investment selection process is designed to maximize the risk/return tradeoff to our shareholders and we employee a bottom up investment selection process. Our internal research has added value over time to our choice of investments. Prospective investments are selected from fundamental analysis and contact with corporate management of the issuing company through company visits. Once an investment is made, a continuous process of monitoring the performance of that investment is adopted.
Liquidity risk
Under certain market conditions, an investor may find it difficult or impossible to liquidate a position.
This can occur when trading is suspended by the exchange on which a security is listed or when poor market sentiment dries up investor interest in an investment. In addition, there may not be a ready market for certain investments due to low levels of publicly traded quantities. Some investments will have to be held to maturity. Proper information for determining the value of certain investments may also not be available under such circumstances of low liquidity.
At Coco Lanka PLC we mitigate this risk by investing in companies with a reasonable free float and where securities are heavily traded. Further, by limiting the portfolio’s buy list to highly traded blue chips, the risk of liquidity can be mitigated.
Legal compliance
The legal support service to Coco Lanka PLC management comes through the group legal department which ensures that the Coco Lanka PLC complies with all legal and regulatory provisions applicable to it. The legal function proactively identifies and sets up appropriate systems and processes for legal and regulatory compliance in respect of all our investments. Similarly, the internal audit function of the Group ensures the safeguarding of company assets and recommends process improvements in areas where process control failures are noted.

11

Regulatory Compliance
The operations of the Coco Lanka PLC come within the rules and regulations applicable to all market participants operating in the equity and debt markets of Sri Lanka, as well as the regulatory provisions applicable to companies listed on the CSE and regulations applicable to securities trading set by the
Securities and Exchange Commission of Sri Lanka. Our systems and processes are structured to satisfy the criteria set by these regulations, and staff are constantly kept aware of the compliance needs imposed by these regulations. An independent compliance officer undertakes responsibility for maintaining a check on the overall compliance process.
Coco Lanka PLC emphasizes professionalism in the manner in which the staff interacts with clients as well as market intermediaries, since it is vital for maintaining the company’s standing within the investment community. Staffs have signed a code of ethics at the time of recruitment by the company, which lays down professional standards of conduct expected of them. Structures to avoid conflicts of interest and compromising of best practices are set up. Staff education covers these areas of practice and declarations by the staff members on compliance and personal equity trading are mandatory. Operational risks
We manage operational risks by identifying areas of risk, formulating plans for their management, promoting best practices, implementing internal controls and systems and monitoring compliance.
Operational risks mainly cover the areas of system failure, continuity of decision making, dealing with contingencies and ensuring efficiency in operations and correct application of recommended management practices.
Issues Pertaining to Employees and Industrial Relationship
The Board of Directors reviews all the issues with regard to employees and Industrial Relation which affect the performance of the Group. Coco Lanka Group takes considerable amount of steps to ensure employees are satisfied at all the levels and their issues are addressed in order to retain talented employees. A well structured grievance handling system is in place to handle the grievance of employees at all levels. We also ensure proper industrial relationships with all the governmental agencies. There are no issues which affect the company’s performance to be disclosed.

12

Coco Lanka PLC
REPORT OF THE BOARD OF DIRECTORS
The Board of Directors of Coco Lanka PLC is pleased to present its Report and the Audited Financial
Statements of the Company and its subsidiaries (‘the Group’) for the financial year ended 31st March
2012.
The details set out herein provide the pertinent information required by the Companies Act No.07 of 2007, the Colombo Stock Exchange Rules and are guided by recommended best Accounting
Practices.
The Principal Activities of the Group and Structure
Coco Lanka PLC is an investment trust.
Companies within each sector and their principal activities are described on pages 25 of the Annual
Report. The financial statements of the Company and the Group which include the income statement, balance sheet, cash flow statement, statement of the changes in equity and notes to the Financial
Statement for the year ended 31st March 2012 are given on pages 19 to 47.
Review of Business
The review of the performance during the year, with comments on financial results and future developments is contained in the Chairman’s statement. These reports form an integral part of the report of the Directors.
Financial Results
The company recorded a net profit of Rs 11 Mn and Rs 301 Mn at group level for the year. An abridgement of the performance is presented in the table below.
For the year ended 31st March
Group
Profit after Taxation
Profit available for appropriation Company

2012 - Rs 000
301,778

2011 –Rs 000
227,553

2012– Rs 000
11,685

2011- Rs 000
230,521

713,987

593,898

400,645

412,360

Auditors Report
The Auditors report on the financial statement is given on page 18 of this Annual Report
Significant Accounting Polices
The accounting policies adopted in the preparation of the financial statements are given on pages
23 to 32. There have been no changes in the accounting policies adopted by the Group during the year under review.
Financial Statements
Financial statements of the Group comprises the balance sheet, statement of income, changes in equity and cash flow together with the accounting policies and notes to the Financial Statements for the year ended 31st March 2012 are set out in pages 19 to 47.
Statement of Directors’ Responsibilities
The Statement of Directors’ Responsibilities for the Financial Statements is given on page 17.

13

Board of Directors
The following Directors held office as at the balance sheet date. Brief portfolios of the Current
Directors are given in page 3 of the Annual Report.
Directors

Executive

Non Executive

Independent

Dr S.R. Rajiyah
Mrs I.R. Rajiyah
Mr S.V. Rajiyah
Mr T.K. Bandaranayake
Mr S. Vasanthakumara
Mr C.J.De.S. Amaratunge
Mr L.M. Abeywickrama
All Directors held office during the entire year.
The following Directors served as members of the Audit Committee and Remuneration Committee
Audit Committee
1.
Mr T.K.Bandaranayake (Chairman)
2.
Mr C.J.De.S.Amaratunge
3.
Mr L.M.Abeywickrama
Remuneration Committee
1.
Mr C.J.De.S.Amaratunge (Chairman)
2.
Mr L.M.Abeywickrama
Directors’ Interest
Directors’ interest in contracts or proposed contract with the Company both direct and indirect are disclosed on page 45 of the Annual Report under related party transactions. The above discloses the transaction with entities where a Director of the either has control or exercise significant influence.
These interests have been declared at Directors’ Meetings.

14

Directors’ interests in transactions and shares
The Directors have no direct or indirect interest in any other contracts or proposed contracts in relation to the business of the Company, while they had the following interest in Ordinary shares of the Company.
As at 31st March

2012
Voting

Dr S.R.Rajiyah
Mrs I.R.Rajiyah
Dr & Mrs I.R.Rajiyah (Jt)
Mr S.V.Rajiyah
Mr T.K.Bandaranayake
Mr C.J.De.S.Amaratunge
Mr L.M.Abeywickrama
Mr S.Vasanthakumara

1,488
270
36
65,546
–))
3,805
–))
–))

2011
Non Voting
124
22
03
2,857
–))
285
–))
–))

Voting

Non Voting

1,488
270
36
65,546
–))
3,805
–))
–))

124
22
03
2,857
–)
285
–)
–)

Remuneration of Directors
Directors’ remuneration, in respect of the Company for the financial year ended 31st March 2012 is given in Note 7 to the Financial Statements, on page 33.
Recommendation for re-election
Mr C.J.De.S.Amaratunge who is above the age 70 years and in accordance with Section 210 (ii) of the companies Act No.7 of 2007, he vacates office at the forthcoming Annual General Meeting. A notice of a resolution has been received from a shareholder that the age limit of 70 years referred to in
Section 210 (i) of the said companies act shall not apply to Mr C.J.De.S.Amaratunge and that he be re-appointed as a Director at the Annual General Meeting. The Directors recommend the adoption of the Ordinary Resolution.
Corporate Donations
During the year donations amounting to Rs7,500.00 were made by the Group.
Auditors
Company’s Auditors during the year under review were Messrs. KPMG (Chartered Accountants).
Their report on the Financial Statements is given on page 18 of the Annual Report.
As far as the Directors are aware the Auditors do not have any other relationship or interest with the
Company other than that of an auditor of the Company.
The retiring auditors have expressed their willingness to continue in office. A resolution to reappoint them as Auditors of the Company and authorizing the Directors to fix their remuneration will be proposed at the Annual General Meeting.
Corporate Governance
Compliance of corporate governance rules as per the Listing Rules of the Colombo Stock Exchange
(CSE).
Solvency Test
Solvency Test has been carried out by the Board of Directors before the payment of the final dividend as required by the Companies Act No.7 of 2007.
Dividends
The Board of Directors have recommended a payment of Rs 1.00 per share payable for 2011/2012
(2010/2011 – Rs 1.00 per share) The Directors are confident that the company would meet the Solvency
Test requirement under section 56 (2) of the companies Act No.7 of 2007 immediately after the proposed final dividend distribution.
15

Stated Capital
The stated capital of the Company as at 31st March 2012 was Rs 552 Mn costing of 23.4 Mn Ordinary shares. Shareholders Funds
Total Group shareholders funds stood at Rs 1.344 Bn as at 31st March 2012 (2011 Rs 1.219Bn) comprising stated capital of Rs 552Mn and reserves of Rs 792 Mn. The movements are shown in the statement of changes in equity.
Property, Plant & Equipment
The carrying value of Property, Plant & Equipment for the group as at 31st March 2012 amounted to
Rs 1.262 Bn. The total expenditure on the acquisition of property, plant & equipment during the year in respect of new assets and replacements by the group amounted to Rs 750 Mn (including through acquisition of subsidiaries).
Statutory Payments
The Directors to the best of their knowledge and belief are satisfied that all statutory payments have been paid up to date or have been provided for in these financial statements.
Going Concern
The Board of Directors is satisfied that the Company has adequate resources to continue its operations in the foreseeable future. Accordingly the financial statements are prepared based on the going concern concept.
Events Occurring after the Balance Sheet Date
Subsequent to the balance sheet date, no material circumstances have arisen, which would require adjustments to or disclosure in these financial statements other than those disclosed in note 33 to these financial statements.
Share information
Information relating to shareholding earnings dividend, net assets and market price per share are given on pages 51 to 53 of the Annual Report.
Annual Report
The Board of Directors approved the Company’s financial statements together with the reviews which forms part of the Annual Report, on 8th August 2012. The appropriate number of copies of the
Report would be submitted to the Colombo Stock Exchange, Sri Lanka Accounting and Auditing
Standard Monitoring Board and the Registrar of Companies within the given time frames.
Notice of Meeting
The notice of meeting of the 22nd Annual General Meeting is given on page No. 54.
Public Holding
The percentage of shares held by the public as at 31st March 2012 was 49.07% voting and 79.11% Non voting. By order of the Board
(Sgd)Dr S.R.Rajiyah
Chairman

8th August 2012

16

(Sgd)C.J.De.S.Amaratunge
Director

(Sgd)RENUKA ENTERPRISES (PVT) LTD
Company Secretaries

Coco Lanka PLC
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
This Statement of Directors’ responsibilities is to be read in conjunction with the Report of the
Auditors and is made to distinguish the respective responsibilities of the Directors and to the
Auditors in relation to the Financial Statements contained in this Annual Report.
The Directors of your Company are required by the Companies Act No.7 of 2007 to prepare financial statements which give a true and fair view of the state of affairs of the Company and of the Group as at the end of the financial year, and of the income and expenditure of the Company and of the
Group for the financial year.
The Directors confirm that the Financial Statements of the Company for the year ended 31st March
2012 presented in the Report have been prepared in accordance with the Sri Lanka Accounting
Standards and the Companies Act of No.7 of 2007. In preparing the Financial Statement, the Directors have selected appropriate accounting policies and have applied them consistently. Reasonable and prudent judgment and estimates have been made and applicable accounting standards have been followed and the Financial Statements have been prepared on a going concern basis.
The Directors are of the view that adequate funds and other resources are available within the company for the company to continue in operation for the foreseeable future.
The Directors have taken all reasonable steps expected of them to safeguard the assets of the
Company and of the Group and to establish appropriate systems of internal controls in order to prevent, deter and detect any fraud, misappropriation or other irregularities.
The Directors have also taken all reasonable steps to ensure that the Company and its subsidiaries maintain adequate and accurate accounting books of record which reflect the transparency of transactions and provide an accurate disclosure of the Company’s financial position.
The Directors are required to provide the Auditors with every opportunity to take whatever steps and undertake whatever inspection they consider appropriate for the purpose of enabling them to give their Audit Report. The Directors are of the view that they have discharged their responsibilities in this regard.
Compliance Report
The Directors confirm that, to the best of their knowledge all taxes and levies payable by the
Company and all contributions, levies and taxes payable on behalf of the employees of the Company, and all other know statutory obligations as at the Balance Sheet date have been paid or provided for in the Financial Statements.
As required by section 56 (2) of the Companies Act No.7 of 2007, the Board of Directors have confirmed that the Company satisfies the Solvency test immediately after the distribution, in accordance with section 57 of the Companies Act No.7 of 2007.
By order of the Board
RENUKA ENTERPRISES (PVT) LTD
Company Secretaries
8thAugust 2012

17

19

18

47

Coco Lanka PLC
INCOME STATEMENT
Group
For the year ended 31st March

2012
Rs.

Company
2012
Rs.

2011
Rs.

2011
Rs.

Note
Revenue

3

1,988,855,019)

2,058,383,001)

(1,356,452,169)

(1,685,430,529)

632,402,850)

372,952,472)

31,343,635)

217,786,321)

19,580,584)

58,294,830)

1,790,646)

22,403,216)

Administrative Expenses

(173,592,223)

(164,445,024)

(2,515,457)

(7,140,266)

Distribution Cost

(121,942,562)

(31,317,885)

–)))))

–)))))

Cost of Sales
Gross Profit
Other Income

4

39,567,535)

808,255,728)

(8,223,900) (590,469,407)

Other Expenses

5

(29,027,533)

–)))))

(25,801,640)

–)))))

Finance Costs

6

(33,372,218)

(2,416,156)

–)))))

(446,612)

138,289)

–)))))

–)))))

–)))))

Excess on Acquisition
Profit before Taxation

7

294,187,187)

233,068,237)

4,817,184)

232,602,659)

Taxation

8

7,591,102)

(5,515,229)

6,867,898)

(2,081,319)

301,778,289)

227,553,008)

11,685,082)

230,521,340)

Equity Holders

142,025,980)

161,219,624)

11,685,082)

230,521,340)

Minority Interest

159,752,309)

66,333,384)

–)))))

–)))))

Profit for the year

301,778,289)

227,553,008)

11,685,082)

230,521,340)

Profit for the year
Attributable to;

Earnings per Share

9

6.07)

6.89)

0.50)

9.85)

Dividend per Share

9.1

1.00)

1.00)

1.00)

1.00

Figures in brackets indicate deductions.
The Notes set out on pages 23 to 47 form an integral part of these Financial Statements.

19

Coco Lanka PLC
BALANCE SHEET
Group

Company
2011
Rs.

2012
Rs.

2011
Rs.

2012
Rs.

1,262,699,295
652,016,160
–))))))
–))))))
174,168,509

573,653,811
46,274,894
–))))))
285,000,000
30,225,305

–))))))
94,258,400
484,572,082
–))))))
–))))))

–))))))
92,735,900
199,572,072
285,000,000
–))))))

2,088,883,964

935,154,010

578,830,482

577,307,972

317,728,020
237,249,322
–))))))
216,014,013
176,077,640
82,700,838

250,603,948
133,592,160
–))))))
201,223,823
210,103,180
173,109,702

–))))))
2,074,174
231,455,048
–))))))
176,077,640
5,295,858

–))))))
2,344,953
2,788,208
188,710,964
210,103,180
14,339,561

1,029,769,833

968,632,813

414,902,720

418,286,866

3,118,653,797

1,903,786,823

993,733,202

995,594,838

552,074,972
77,933,500
713,987,090

552,074,972
73,185,107
593,898,626

552,074,972
–))))))
400,645,272

552,074,972
–))))))
412,360,190

Equity attributable to equity holders of the Company
Minority Interest

1,343,995,562
814,005,660

1,219,158,705
450,297,083

952,720,244
–))))))

964,435,162
–))))))

Total Equity

2,158,001,222

1,669,455,788

952,720,244

964,435,162

50,691,605
117,564,187
65,486,066
24,238,959

24,699,539
13,100,643
69,250,000
11,379,879

947,990
–))))))
–))))))
724,949

7,815,888
–))))))
–))))))
630,614

257,980,817

118,430,061

1,672,939

8,446,502

26
27
28
29

315,671,651
–))))))
52,649,896
1,816,549

74,633,169
–))))))
4,378,827
2,161,941

2,362,935
–))))))
35,129,860
1,816,549

3,694,222
17,532,011
–))))))
1,486,941

23

222,699,678
–))))))
2,163,702
107,670,282

3,208,356
15,011,505
2,123,744
14,383,432

–))))))
–))))))
–))))))
30,675

–))))))
–))))))
–))))))
–))))))

702,671,758

115,900,974

39,340,019

22,713,174

3,118,653,797

1,903,786,823

993,733,202

995,594,838

As at 31st March
Note
ASSETS
Non Current Assets
Property, Plant and Equipment
Investment Properties
Investment in Subsidiaries
Advance paid for purchase of shares
Intangible Assets
Current Assets
Inventories
Trade and Other Receivables
Amounts Due from Subsidiary Companies
Amounts Due from Related Companies
Short Term Investments
Cash and Cash Equivalents

10
11
12
13

14
15
16
17
18
19

Total Assets
EQUITY AND LIABILITIES
Equity attributable to Equity Holders of the Company
Stated Capital
20
Reserves
21
Retained Earnings

Non Current Liabilities
Deferred Tax Liability
Interest Bearing Borrowings
Finance Lease Obligations
Retirement Benefit Obligation
Current Liabilities
Trade and Other Payables
Amounts Due to Subsidiary Companies
Amounts Due to Related Companies
Dividend Payable
Current Portion of Interest Bearing
Borrowings
Short Term Loan
Current Portion of Finance Lease Obligations
Bank Overdraft
Total Equity and Liabilities

22
23
24
25

24
19

Figures in brackets indicate deductions.
The Notes set out on pages 23 to 47 form an integral part of these Financial Statements.
These Financial Statements are in compliance with the requirements of the Companies Act No.07 of 2007.

Sgd A.F. Feroze Noon
Head of Finance
The Board of Directors is responsible for the preparation and presentation of these Financial Statements.
Approved for and on behalf of the Board of Directors of Coco Lanka PLC:

Sgd S.V Rajiyah
Director
08th August 2012
Colombo

20

Sgd C.J De S. Amaratunge
Director

Coco Lanka PLC
STATEMENT OF CHANGES IN EQUITY
Stated
Capital
(Rs.)

Revaluation
Reserve
(Rs.)

Retained
Earnings
(Rs.)

Minority
Interest
(Rs.)

Total
Equity
(Rs.)

552,074,972

73,185,107

321,786,354)

461,249,049)

1,408,295,482)

Profit for the year

–)))))

–)))))

161,219,624)

66,333,384)

227,553,008)

Dividends Paid

–)))))

–)))))

(23,400,000)

(19,735,200)

(43,135,200)

Changes in Group Holding in
Renuka Organics (Pvt) Ltd

–)))))

–)))))

18,625,214)

(68,625,214)

(50,000,000)

Disposal of shares of Renuka
Agrifoods PLC

–)))))

–)))))

83,827,101)

42,915,397)

126,742,498)

Adj. do not result in loss of control

–)))))

–)))))

31,840,333)

(31,840,333)

–)))))

552,074,972

73,185,107

593,898,626)

450,297,083)

1,669,455,788)

Profit for the Year

–)))))

–)))))

142,025,980)

159,752,309)

301,778,289)

Dividends Paid

–)))))

–)))))

(23,400,000)

(23,056,057)

(46,456,057)

On Revaluation During the Year

–)))))

4,748,393

–)))))

–)))))

4,748,393)

On Acquisition of Subsidiaries

–)))))

–)))))

–)))))

228,224,809)

228,224,809)

Deemed Disposal of Ownership Interest

–)))))

–)))))

1,462,484)

(1,212,484)

250,000)

552,074,972

77,933,500

713,987,090)

814,005,660)

2,158,001,222)

Stated
Capital
(Rs.)

Retained
Earnings
(Rs.)

Total
Equity
(Rs.)

552,074,972

205,238,850)

757,313,822)

Dividends Paid - 2010 Final

–)))))

(23,400,000)

(23,400,000)

Profit for the Year

–)))))

230,521,340)

230,521,340)

552,074,972

412,360,190)

964,435,162)

Dividends Paid - 2011 Final

–)))))

(23,400,000)

(23,400,000)

Profit for the Year

–)))))

11,685,082)

11,685,082)

552,074,972

400,645,272)

952,720,244)

GROUP
Balance as at 01 April 2010

Balance as at 31 March 2011

Balance as at 31 March 2012

COMPANY
Balance as at 1 April 2010

Balance as at 31 March 2011

Balance as at 31 March 2012

Figures in brackets indicate deductions.
The Notes set out on pages 23 to 47 form an integral part of these Financial Statements.

21

Coco Lanka PLC
CASH FLOW STATEMENT
Group
For the year ended 31st March

2012
Rs.

Company
2011
Rs.

2012
Rs.

2011
Rs.

CASH FLOW FROM OPERATING ACTIVITIES
Profit before Taxation

294,187,187)

233,068,237)

4,817,184)

232,602,659)

Adjustments for :
Depreciation on Property Plant and Equipment
Amortization of Intangible Assets
Provision for Retiring Gratuity
Change in Fair Value of Share Investments
Provision for Slow Moving Items
Change in Fair Value of Investment Properties
Loss on Revaluation of Buildings
Interest Expenses
Profit on disposal of Share Investment
Excess on Acquisition
Loss on disposal of Property, Plant & Equipment

53,285,643)
2,729,631)
7,029,828)
25,801,640)
–))))))
–))))))
3,225,893)
8,711,812)
(626,117)
(138,289)
500)

42,437,995)
–))))))
3,074,173)
(5,994,734)
1,544,097)
–))))))
–))))))
2,416,156)
–))))))
–))))))
(700,000)

–))))))
–))))))
170,285)
25,801,640)
–))))))
(1,522,500)
–))))))
–))))))
(626,117)
–))))))
–))))))

728,547)
–))))))
149,490)
(5,994,734)
–))))))
–))))))
–))))))
446,612)
–))))))
–))))))
(700,000)

Operating profit before working capital changes

394,267,728)

275,845,924)

28,640,492)

227,232,573)

(Increase)/Decrease in Inventories
(40,825,949)
(Increase)/Decrease in Trade & Other Receivables
(59,370,674)
(Increase)/Decrease in Amount due from
Related Companies
144,369,610)
(Decrease) / Increase in Trade & Other Payables
79,801,223)
(Decrease) / Increase in Amount due to
Related Companies
(137,733,931)

(23,564,439)
39,830,649)

–))))))
270,780)

–))))))
4,217,433)

(163,576,672)
(14,587,814)

(39,955,876)
(1,331,287)

(136,415,452)
(6,627,206)

3,887,820)

17,597,849)

(29,675,001)

Cash Generated / (used in) from Operations

380,508,007)

117,835,468)

5,221,958)

58,732,347)

Interest Paid
Gratuity Paid
Taxation Paid

(8,751,383)
(1,048,585)
(10,115,727)

(2,416,156)
(1,368,047)
(7,731,859)

–))))))
(75,950)
–))))))

(446,612)
(74,925)
(422,435)

Net Cash Generated from / (Used in) Operating Activities

360,592,312)

106,319,406)

5,146,008)

57,788,375)

–))))))
(550,120,402)
(220,759,272)
(13,648,153)
8,850,007)
–))))))

(285,000,000)
(50,000,000)
(60,996,718)
–))))))
–))))))
(155,708,446)

–))))))
–))))))
–))))))
–))))))
8,850,007)
–))))))

(285,000,000)
–))))))
–))))))
–))))))
186,732,928)
(155,708,445)

419,500)
–))))))

700,000)
126,742,498)

–))))))
–))))))

700,000)
–))))))

(775,258,320)

(424,262,666)

8,850,007)

(253,275,517)

(2,166,260)
306,382,354)
(12,028,238)
(15,011,505)
(23,400,000)
(23,056,057)
250,000)

(2,294,473)
–))))))
(5,004,387)
12,296,122)
(42,929,179)
–))))))
–))))))

–))))))
–))))))
–))))))
–))))))
(23,070,393)
–))))))
–))))))

–))))))
–))))))
(684,616)
–))))))
(23,193,979)
–))))))
–))))))

Net Cash Generated from / (Used in) Financing Activities 230,970,294)

(37,931,917)

(23,070,393)

(23,878,595)

(183,695,714)
158,726,270)

(355,875,177)
514,601,447)

(9,074,378)
14,339,561)

(219,365,738)
233,705,299)

(24,969,444)

158,726,270)

5,265,183

14,339,561)

49,469,076)
33,231,762)
(107,670,282)

51,201,256)
121,908,446)
(14,383,432)

1,190,321)
4,105,537)
(30,675)

11,667,905)
2,671,656)
–))))))

(24,969,444)
158,726,270)
5,265,183)
Figures in brackets indicate deductions.
The Notes set out on pages 23 to 47 form an integral part of these Financial Statements.

14,339,561)

CASH FLOW FROM INVESTING ACTIVITIES
Advance for purchase of Shares
Acquisition of Shares in Subsidiaries
Addition to Property, Plant & Equipment
Addition to Intangible Assets
Proceeds from Disposal of Share Investments
Addition to Short term Investments
Proceeds from Disposal of Property,
Plant & Equipment
Proceeds from Disposal of Subsidiaries
Net Cash Generated from / (Used in) Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Lease Rental Paid
Proceeds from Borrowings
Repayment of Borrowings
Repayment of Short Term Loans
Dividends Paid
Dividends Paid to Minority
Proceeds from Issue of Shares
Net Decrease in Cash & Cash Equivalents
Cash & Cash Equivalents at the Beginning of the Period
Cash & Cash Equivalents at the End of the Period
Note A: Analysis of Cash and Cash Equivalents
Cash at Bank & in Hand
Short Term Investments
Bank Overdraft

22

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
1.

REPORTING ENTITY & BASIS FOR PREPARATION
1.1 Domical and Legal form
Coco Lanka PLC is a quoted public limited liability company incorporated and domiciled in
Sri Lanka under the Companies Act No 17 of 1982, re registered under the Companies Act
No 07 of 2007. The address of the Company’s registered office is No 69. Sri Jinarathana
Road, Colombo 2.
1.2 Principal Activities and the Nature of Business
The Principal activities of the company up to 31st December 2008 was manufacturing and marketing of agriculture products and with effect from 01 January 2009 the principal activity is investment in agricultural ventures and now it has become an Investment trust.
1.3 Parent Enterprise and Ultimate Parent Enterprise.
The Company’s immediate parent is Renuka Agro Exports (Pvt) Ltd and ultimate parent entity is Renuka Holdings PLC, which are incorporated in Sri Lanka.
1.4 Statement of Compliance
Consolidated financial statements of the Coco Lanka PLC for the year ended 31 March 2012 includes the company and its subsidiaries.
The Financial Statements of the Company and the Group comprise the Balance Sheet,
Income Statement, Statement of changes in Equity, Cash Flow Statement and notes to the
Financial Statements, which are prepared in accordance with the Sri Lanka Accounting
Standards laid down by the Institute of Chartered Accountants of Sri Lanka and the requirements of Companies Act No. 07 of 2007.
1.5 Basis of Preparation
The Financial Statements are presented in Sri Lankan rupees and on the historical cost convention other than Investment property of the company which is stated at Fair Value.
No adjustments have been made for inflationary factors in the financial statements.
1.6 Comparative Information
The Accounting Policies have been applied consistently by the Company and are consistent with those of the previous year and the previous year’s figures and phrases have been rearranged wherever necessary to conform to the current year’s presentation.
1.7 Functional & presentation currency
Items included in the financial statements of each of the Group entities are measured using the currency of the primary economic environment in which the entity operates
(“the functional currency’), which is Sri Lankan Rupees.
These consolidated Financial Statements are presented in Sri Lankan Rupees, which is the
Company’s functional currency.

23

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
1.8 Use of Estimate & judgements
The preparation of the financial statements in conformity with Sri Lanka Accounting
Standards require managements to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
1.9 Materiality and Aggregation
Each material class of similar items is presented separately in the Financial Statements.
Items of dissimilar nature or function are presented separately unless they are immaterial.
1.10 Going Concern
The Board is satisfied that the company had adequate resources to continue its operations in the foreseeable future. Therefore, continue to adopt the going-concern basis in preparing these financial statements.
1.11 Directors’ Responsibility for the Financial Statements
The Board of Directors is responsible for the preparation of these financial statements in accordance with Sri Lanka Accounting Standards and as per the provisions of the Companies
Act No. 07 of 2007. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
The Board of Directors acknowledges this responsibility as set out in the “Annual Report in the Board of Directors”.
1.12 Events after the Balance Sheet Date
All material events after the Balance Sheet date have been considered and appropriate adjustments/disclosures have been made in the Financial Statements, where necessary.
1.13 New Accounting Standards Issued But Not Effective as At Balance Sheet Date
The Institute of Charted Accountants of Sri Lanka has issued a new volume of Sri Lanka
Accounting Standards which will become applicable for financial periods beginning or after 1st January 2012. Accordingly, these Standards have not been applied in preparing these financial statements as they were not effective for the year ended 31st March 2012.
These Sri Lanka accounting standards comprise accounting standards prefixed both SLFRS
(corresponding to IFRS) and LKAS (corresponding to IAS). Application of Sri Lanka
Accounting Standards prefixed SLFRS and LKAS for the first time shall deemed to be an adoption of SLFRSs.
The Group is currently in the process of evaluating the potential effects of these Standards on its financial statements and the impact on the adoption of these standards have not been quantified as at Balance Sheet date.

24

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of Consolidation
The Financial Statements of the Group represents the consolidation of the Financial
Statements of the Company and of its subsidiaries listed below,
Name of Subsidiary
*
Renuka Agri Foods PLC
*
Coco Hotels & Properties Ltd
*
Coco Resorts & Villas (Pvt) Ltd
*
Renuka Organics (Pvt) Ltd
*
Renuka Teas (Ceylon) Ltd
*
Kandy Plantations Ltd
*
Renuka Products (Pvt) Ltd
*
Campbell Teas (Pvt) Ltd
*
Renuka Trading (Pvt) Ltd
*
Ceylon Forestry (Pvt) Ltd
*
Ceylon Botanicals (Pvt) Ltd
*
Richlife Dairies Ltd

Principal Activities
Manufacture & Marketing Range of Coconut Products
Investment Property
Investment
Organic Certification License holder
Export of Tea products
Organic certified cultivation & Agricultural produce
Manufacture of Soya, Essence & Fish Products
Export of Tea products
Investment Property
Planting and Managing of Forestry
Investment in Agricultural Property
Manufacture & Marketing of Diary & Fruit Products

The company and its subsidiaries have a common financial period which ends on 31st March.
2.1.1Subsidiaries
Subsidiaries are those entities controlled by the Group. Control exists when the Group has the power directly or indirectly to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The Financial Statements of Subsidiaries are included in the consolidated Financial Statements when control effectively commences and until control effectively ceases.
The Group uses the purchase method of accounting to account for business combinations.
The cost of an acquisition is measured at the fair value of the asset given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition.
The excess of the cost of acquisition over the fair value of the Group’s share of identifiable net assets acquired is recorded as goodwill, and tested for impairment annually. The excess of the value of the net assets of the subsidiary companies over the purchase price or consideration at the date of acquisition where the control is obtained is treated as excess on acquisition. Such excess is directly recognised in the income statement.
Intra-group transactions, balances and unrealized gains arising from intra-group transactions, are eliminated in full in preparing the consolidated financial statements.
Unrealized losses are also eliminated.
Upon the loss of control, the Group de-recognizes the assets and liabilities of the subsidiary, any minority interests and other components of equity related to the Subsidiary.
Any surplus or deficit arising on the loss of control is recognized in profit or loss. If the
Group retains any interest in the previous Subsidiary, then such interest is measured at carrying amount at the date that control is lost. Subsequently it is accounted for as an equity-accounted invested or as an available-for-sale financial asset depending on the level of influence retained.
Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. In such circumstances the carrying amounts of the controlling and non controlling interests will be adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non controlling interests are adjusted, and the fair value of the consideration paid or received, will be recognized directly in equity and attributed to the owners of the parent.
25

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
2.1.2Minority Interests
Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group and are presented separately in the Consolidated
Income Statement and within equity in the Consolidated Balance Sheet, separately from the amounts attributable to equity holders of the parent.
2.2 Income Tax Expense
2.2.1Current Taxes
Current Tax is the expected tax payable / recoverable on the taxable income (if any) for the year, using tax rates enacted or substantially enacted at the Balance Sheet date and any adjustments to tax payable/receivable in respect of previous years.
Current tax payable also includes any tax liability arising from the declaration of dividends. The provision for Income Tax is based on the profit for the financial year adjusted for tax purposes in accordance with the Inland Revenue Act No. 10 of 2006 and subsequent amendments thereto.
2.2.2Deferred Tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rate that is expected to be applied to the temporary difference when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
A Deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.
2.2.3Withholding Tax on Dividends
Dividend distributed out of taxable profit of the local companies attracts a 10% deduction at source and is not available for set off against the tax liability of the
Company. Withholding tax that arises from the distribution of dividends by the
Company is recognized at the same time as the liability to pay the related dividend is recognized. 2.3 Borrowing Cost
All Borrowing Costs are recognized as an expense in the period in which they are incurred.
The amount of borrowing costs eligible for capitalization is determined in accordance with SLAS 20, “Borrowing Costs”.

26

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
2.4 Foreign Currency Transaction
All foreign Currency transactions are converted into Sri Lankan Rupees at the exchange rate prevailing at the time transactions are affected.
Monitory assets and liabilities denominated in foreign currencies are translated into Sri
Lankan Rupees at a rate of exchange prevailing at the Balance Sheet date while non monitory assets and liabilities denominated in foreign currencies which are stated at historical cost are converted to Sri Lankan Rupees at the rates prevailing at the dates of transactions are affected.
Exchange differences arising there from are dealt within the Income Statement.
ASSETS AND BASES OF THEIR VALUATION
2.5 Property, Plant & Equipment
2.5.1Recognition and measurement
Items of Property, Plant & Equipment are measured at cost less accumulated depreciation and impairment losses.
The cost of Property, Plant & Equipment is the cost of acquisition or construction together with any incidental expenses thereon.
Expenditure incurred for the purpose of acquiring, extending or improving of a permanent nature by means of which to carry on the business or to increase the earning capacity of the business have been treated as capital expenditure.
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. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment, and is recognized net within other income/ other expenses in profit or loss.
2.5.2Premium paid on Leasehold Land
The premium paid by the subsidiary for leasehold land represents prepaid rental charges which are amortized over 50 years, commencing from the second year of operation. 2.5.3Immature and Mature Plantations
The cost of replanting and new planting are classified as immature plantation up to the time of harvesting the crop.
Further, the general charges incurred on the plantation are apportioned based on the labour days spent on respective Replanting and New planting and capitalized on the immature areas. The remaining portion of the general charges is expensed in the accounting period on which it is incurred.
The cost of the immature coming in to bearing are transferred to mature plantation and depreciated over their useful life period.

27

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
2.5.4 Impairment
An impairment loss is recognized if the carrying amount of an asset or its cash generating unit exceeds its recoverable amounts. A cash generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognized in the income statement.
The recoverable amount of an asset or cash generating unit is the greater of its use and its fair value less costs to sell. 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 assets or cash generating unit.
2.5.5 Depreciation
Depreciation is not charged on Land. Depreciation on all other Property, Plant &
Equipment is provided on the straight line basis to write off the cost/valuation over their estimated useful lives. The annual rates used for this purpose which are consistent with those of the previous year are:
%
Buildings
Motor Vehicles
Plant, Machinery & Others
Office Equipment

2.5
20
10
10

Depreciation of an asset begins when it is available for use whereas depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognized.
2.6 Investment Property
2.6.1 Classification
Investment property is properly held either to earn rental income, for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes.
Investment property is measured at cost on initial recognition and subsequently at fair value with any change therein recognized in profit or loss. Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalized borrowing costs.
When the use of a property changes such as that it is reclassified as property, plant, equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting. When the use of a property changes from owner-occupied to investment property, the property is re measured to fair value and reclassified as investment property. Any gain arising on re measurement is recognized in profit or loss to the extent that it reverses a previous impairment loss on the specific property, with any remaining gain recognized in other comprehensive income and presented in the revaluation reserve in equity. Any loss is recognized immediately in profit or loss.
Where the group companies occupy a significant portion of the investment property of a subsidiary such as investment properties, are treated as property, plant and equipment in the consolidated Financial Statements, Accounted for in accordance with SLAS 18 (Revised 2005) – Property, Plant and Equipment.
28

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
2.6.2 Valuation
Subsequent to the initial recognition the investment properties are stated at fair values which reflect the market condition as at balance sheet date. Gains and losses arising from changes in fair value are included in the income statement in the year which they arise.
Fair value of the investment property will be determined once in every 3 year on the basis over valuation by an independent valuer while the annual fair value of the investment property will be carried out by an entity’s Board of Directors. However, if market conditions change in such a way where the Directors of the Company are unable to carry out a reasonable valuation, a valuation from an independent valuer will be obtained for that year too.
Investment properties are derecognized when disposed of, or permanently withdrawn from use because no future economic benefits are expected. Any gains or losses retirement or disposal is recognized in the income statement in the year of retirement of disposal. Transfers are made to and from investment property only when there is a change in use in accordance with the criteria listed in SLAS 40.
2.7 INTANGIBLE ASSETS
2.7.1 Goodwill on Acquisitions
Goodwill arising in connection with the acquisition of Subsidiaries where control is obtained, which is due to the excess of the purchase price or consideration over the net assets acquired, is shown as an intangible asset in the Balance sheet and is tested annually for impairment and carried at cost less accumulated impairment losses. The excess of the value of the net assets of Subsidiary Companies over the purchase price or consideration at the date of acquisition where the control is obtained is treated as excess on acquisition. Such excess is directly recognized in the Income
Statement.
2.7.2 Computer Software
Acquired computer software licenses are capitalized on the basis of the cost incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful life of 5 years.
2.8 Inventories
The cost of each category of inventory of the Company and its subsidiary are determined on the following basis.
Raw Material & Consumables at the factory are ascertained on a weighted average basis.
Finished Goods are valued at Factory Cost which includes an appropriate portion of
Production Overheads. Goods-in-Transit are valued at actual Cost.
2.8.1 Harvested Crops
Inventory of harvested crop since sold has been valued at since realized price. Unsold harvested crop has been valued at estimated realizable value net of direct selling expenses. This basis has been adopted to recognize the profit /loss on perennial crops in the financial period of harvesting.

29

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
2.8.2 Provision for Slow moving Stocks
Adequate provision has been made in the financial statements for slow moving stocks based on the management Judgment.
2.9 Debtors & Other Receivables
Debtors & Other Receivables are stated at the amounts estimated to realize. Where necessary, provisions are made for bad and doubtful debts.
2.10 Investments
2.10.1 Long Term Investments
Quoted and unquoted investments held on long term basis are classified as noncurrent investment and are measured at cost less impairment losses. The cost of the investment is the cost of acquisition inclusive of brokerage and cost at transaction. Provision for impairment is made in the income statement, when there has been a decline other than temporary in the value of investments, determined on an individual basis.
2.10.2 Short Term Investments
Short-term investments are recognized at market value as at the Balance Sheet date. Any resultant mark to market gain or loss is recognized in income statement.
2.11 Cash & Cash Equivalents
Cash and Cash Equivalents are defined as cash in hand, demand deposit in bank and short term highly liquid investments, readily convertible to known amounts of cash and subject to insignificant risk of change in value. For the purpose of Cash Flow Statement, Cash and
Cash Equivalents consist of Cash in hand; Short term Deposits in banks net of Bank over drafts. Interest paid and received are classified as operating cash flows, dividend received are classified as investing cash flows while dividend paid are classified as financing cash flows for the purpose of presentation of Cash Flow Statement, reported based on the indirect method.
LIABILITIES AND PROVISIONS
2.12 Capital Commitments & Contingencies
All material capital commitments and contingent liabilities of the Group as at the Balance
Sheet date is disclosed in the notes to the accounts.
2.13 Employee Benefit Cost
2.13.1 Defined Contribution Plans – EPF and ETF
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the period during which services are rendered by employees.

30

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
All employees who are eligible for provident fund and trust fund contributions are covered by relevant contributory funds in line with respective statutes. Employer’s contribution to the defined contribution plans are recognized as an expense in the
Income Statement when incurred. The employer has no further payment obligations, once the contributions have been paid.
The company contributes 12% and 3% respectively to the above funds.
2.13.2 Defined Benefit Plans – Gratuity
The Company and the Group are liable to pay retirement benefits under the
Payment of Gratuity Act, No. 12 of 1983.
Defined benefit plan defines an amount of benefit that an employee will receive on retirement, usually dependent on one or more factors such as years of service and compensation. The liability recognized in the Balance Sheet in respect of defined benefit plan is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized past-service costs.
The defined benefit obligation is calculated annually by independent actuaries using the ‘Projected Unit Credit method’. As required by Sri Lanka Accounting
Standard 16 (Revised 2006) – “Retirement Benefits.”
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized immediately in the Income Statement.
2.13.3 Short-term Employee Benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.
2.14 Bills Payables
The Company account for the liability on receipt of documents for clearance.
2.15 Provisions
A Provision is recognized if, as a result of past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
2.16 Grants
Grants received in relation to assets are deducted from the cost of the assets. Thus this grant is recognized as income over the useful life of the depreciable assets by way of a reduced depreciation charge. Export rebates received as rewards are recognized as income in the Income Statement.

31

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
INCOME STATEMENT
2.17 Turnover
The turnover of the group and the company represents the invoiced value of goods net of discounts and returns. Intra group sales are excluded in computing group turnover.
2.17.1 Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized.
Exports Sales - At the time of shipment
Local Sales - At time of dispatch
Other Income is recognized on an accruals basis.
Dividend Income is recognized when the Company’s right to receive payment is established. 2.18 Expenditure Recognition
2.18.1 Revenue expenditure
All expenditure incurred in the running of the business and in maintaining the capital assets in a state of efficiency, has been charged to revenue in arriving at the profit or loss for the year.
2.18.2 Capital Expenditure
Expenditure incurred for the purpose of acquiring, extending or improving assets of a permanent nature by means of which to carry on the business or for the purpose of increasing the earning capacity of the business has been treated as capital expenditure. For the purpose of presentation of the Income Statement, the directors are of the opinion that function of expenses method fairly present the elements of the company’s performance, hence such presentation method is adopted.
2.19 Segmental Reporting
A segment is a distinguishable component of the group that is engaged in either providing products or services (Business Segment) or in providing products or services within particular economic environment (Geographical Segment) which is subject to risk and rewards that are different from those of the other segment.
2.20 Cash Flow Statement
The Cash Flow Statement has been prepared using the indirect method. Interest paid is classified as operating cash flows. Interest received and dividend received, are classified as cash flows from investing activities while the dividend paid is classified as financing activities. 2.21 Related Party Transactions
Disclosures are made in respect of the transactions in which one party has the ability to control or exercise significant influence over the financial and operating policies or decisions of the other irrespective of whether price is being charged.

32

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
Group

Company

2012
Rs.

7.

7.1

1,213,667,947
170,288,595
668,919,431
5,507,028
–)))))

–)))))
–)))))
8,850,007
28,197,528
2,520,000

–)))))
–)))))
775,804,000)
29,931,728)
2,520,000)

2,058,383,001

39,567,535

808,255,728)

4,361,010)

27,248,142

192,428

14,069,196)

(500)
10,511,228)
1,636,149)
199,580)
–)))))
–)))))
–)))))
2,873,117)

700,000
3,482,224
7,670,295
835,549
5,994,734
–)))))
10,000,000
2,363,886

–)))))
–)))))
75,718
–)))))
–)))))
1,522,500
–)))))
–)))))

700,000)
–)))))
(4,601)
–)))))
5,994,734)
–)))))
–)))))
1,643,887)

58,294,830

1,790,646

22,403,216)

25,801,640)
3,225,893)

–)))))
–)))))

25,801,640
–)))))

–)))))
–)))))

–)))))

25,801,640

–)))))

3,259,660)
1,675,023)
3,816,700)
20,429)
24,600,406)

746,164
63,710
1,519,468
86,814
–)))))

–)))))
–)))))
–)))))
–)))))
–)))))

430,156)
16,456)
–)))))
–)))))
–)))))

33,372,218)

6.

1,634,801,480)
337,106,004)
8,850,007)
8,097,528)
–)))))

29,027,533)

5.

2011
Rs.

19,580,584)

4.

Revenue
Export Sales
Local Sales
Sale of Shares
Dividend Income
Rental Income

2012
Rs.

1,988,855,019)

3.

2011
Rs.

2,416,156

–)))))

446,612)

Other Income
Interest on Repo and Bank Deposits
Profit/(Loss) on disposal of Property
Plant & Equipment
Sundry Sales
Exchange Gain / (Loss)
Insurance Claim
Change in Fair Value of Share Investment
Change in Fair Value of Investment Property
Export Rebate
Sundry Income

Other Expenses
Change in Fair Value of Share Investment
Loss on Revaluation of Buildings

Finance Cost
Interest on Bank Overdrafts
Interest on Term Loan
Interest on Bank Loans
Interest on Leases
Exchange Losses

Profit before Taxation
Profit before Taxation is stated after charging all expenses/income including the followings;
Directors Remuneration and Fees
4,280,000)
Auditors’ Remuneration
Audit Services
735,000)
Non Audit services
150,000)
Other Auditor’s Fee
1,316,504)
Depreciation
53,285,643)
Amortization of Intangible Assets
2,729,631)
Personnel Costs ( Note 7.1)
185,032,912)

2,810,000

175,000

45,000)

625,000
100,000
355,000
42,437,995
–)))))
119,752,974

305,000
–)))))
–)))))
–)))))
–)))))
170,285

265,000)
–)))))
–)))))
728,547)
–)))))
149,490)

Personnel Cost
Salaries, Wages and Other related costs
165,605,664)
Defined Contribution Plan Cost-EPF & ETF
11,896,905)
Defined Benefit Plan Cost- Retirement Gratuity
7,530,343)

107,312,914
9,445,989
2,994,071

–)))))
–)))))
170,285

–)))))
–)))))
149,490)

185,032,912)

119,752,974

170,285

149,490)

33

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
Group
For the year ended 31 March,
8.

2012
Rs.

Company
2011
Rs.

2012
Rs.

2011
Rs.

Taxation
Income Tax Expense
3,656,059
Under provision in respect of previous years
96,505
Tax effect on Inter Co. Dividends
422,600
Origination and Reversal of Temporary
Differences
(11,766,266)

7,459,094
–))))
272,765

–)))))
–)))))
–)))))

2,414,455
–))))
–))))

(2,216,630)

(6,867,898)

(333,136)

(7,591,102)

5,515,229

(6,867,898)

2,081,319

8.1

Current Tax
8.1.1 Company
Income tax has been computed in accordance with the provisions of the Inland Revenue Act
No 10 of 2006 and amendments thereto.
According to the section 13 (t) of the Inland Revenue Act No. 10 of 2006, profit earned on the sale of shares of which share transaction levy under section 7 of the Finance Act No 5 of
2005, is paid is exempt from income tax. Interest and other Income are liable to Income Tax at 28% (2011 – 35%).

8.2

Subsidiary Companies Enjoying Tax Holidays at Concessionary Rates of Tax
8.2.1 Renuka Agri Foods PLC
In terms of the agreement with the Board of Investment of Sri Lanka (BOI), business profit of the Company is exempt from income tax for a period of 12 years from the date of commencement of its business.
This exempt period will end by the year of assessment 2011/2012. After the expiration period, the Company is liable for taxation at rate of 12%.
Dividend paid by the Company out of exempt profits during the 12 year tax holiday period or within one year thereafter are exempt from income tax.
8.2.2 Renuka Teas Ceylon (Private) Limited
The company’s export profit is liable to income tax at a concessionary rate of 12%. Further, other
Income is liable to income tax at 28%.
8.2.3 Renuka Organics (Private) Limited
According to the agreement entered into with the Board of Investment of Sri Lanka, the profit and income of the company is exempt for a period of 5 years. This tax holiday expired on 31st
March 1999.
Further, from the Year of Assessment 2006/2007, under Section 16 of the Inland Revenue Act No.
10 of 2006, the Company’s profit is exempt from income tax for a period of five years. This tax holiday expired on 31st March 2011.
However, from the year of assessment 2011/12 the company is liable to income tax at 28%.
8.2.4 Campbell Teas (Private) Limited
From the Year of Assessment 1999/2000, according to Section 52 of the Inland Revenue Act No.
10 of 2006, the Company’s export profit is liable to income tax at a concessionary rate of 12%.
The Company’s other income is liable to income tax at the rate of 28%. For the current year, income tax on other income has been provided at 28%.
8.2.5 Renuka Trading (Private) Limited
The Company, being a subsidiary of Renuka Group is liable to income tax at 28% and not entitled to Small Company Relief.
8.2.6 Ceylon Botanicals (Private) Limited
The Company, being a subsidiary of Renuka Group is liable to income tax at 28% and not entitled to Small Company Relief.

34

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March,
8.2

Subsidiary Companies Enjoying Tax Holidays at Concessionary Rates of Tax ( Continued.)
8.2.7 Renuka Products (Private) Limited ( Formerly Renuka Witsenburg Organics (Private) Limited)
The income tax has been computed in accordance with the Inland Revenue Act No 10 of 2006 and subsequent amendments thereto. Since the Company’s turnover is less than Rs. 300 Mn, the Company is liable to income tax at the rate of 10% for the year of assessment 2011/2012
(2010/2011 -35%) as per the Sec 59B of the Inland Revenue (Amendment) Act No 8 of 2012 excluding the Group Companies from applying the rate of 10% with effect from year of assessment 2012/2013.
8.2.8 Ceylon Forestry (Private) Limited
In accordance with the provisions of Section 17 of the Board of Investment of Sri Lanka Law No.
4 of 1978, the Company will be entitled to the following exemptions/benefits with regard to income tax:
(i) For a period of eight (08) years reckoned from the Year of Assessment as may be determined by the BOI, Sri Lanka, profit of the Company is exempt from income tax. For the above purpose, the year of assessment shall be reckoned from the year in which the Company commences to make profits or any year of assessment not later than two (02) years reckoned from the date of commencement of commercial operations whichever year is earlier, as specified in a certificate issued by the BOI, Sri Lanka.
(ii) After the expiration of the aforesaid tax exemption period, referred to in sub clause (i) above, the profits and income of the Company shall for each year of assessment be charged at the rate of ten per centum (10%) for a period of two (2) years (“concessionary period”) immediately succeeding the last date of the tax exemption period during which the profits and income of the Company is exempted from the income tax.
(iii) After the expiration of the aforesaid concessionary period referred to in sub clause (ii) above, the profits and income of the Company shall be charged for any year of assessment at the rate of twenty per centum (20%).
However, other income would be liable to Income Tax at 28% for the year. The Company, being a subsidiary of Renuka Group is liable to income tax at 28% and not entitled to Small
Company Relief.
8.2.9 Kandy Plantations Limited
According to the Agreement dated 13.11.2003 entered into with the Board of Investment of Sri
Lanka, the Profits & Income of Kandy Plantations Ltd was exempt for a period of 5 years from the year of assessment in which the Enterprises commence to make profit (i.e. 2003/2004). Accordingly the tax holiday expired on 31st March 2008.
However, the profit from Agriculture of the Company continues to be exempt from income tax for further 3 years of Assessments ending 2010 / 2011, under Section 16 of the Inland Revenue Act
No. 10 of 2006, the Company is liable to income tax at 10% on profit from Agriculture from the year 2011/2012.
The other income of the Company is liable to income tax at 28%.
The profit from export sales is liable to income tax at 12%.
8.2.10 Richlife Dairies Limited
The Company’s trading profit is liable for income tax at the rate of 12% for the year of assessment 2011/2012.
8.2.11 Coco Hotels & Properties (Private) Limited
The Company is liable to income tax at 28%.
8.2.12 Coco Resorts & Villas (Private) Limited
The Company is liable to income tax at 28%.

35

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
Group

Company
2011
Rs.

2012
Rs.

2011
Rs.

294,187,187)
28,513,507)
76,027,714)
(38,418,134)
562,565)
(5,194,839)

233,068,237)
131,737,669)
58,796,452)
(274,749,473)
12,818,872)
(150,851,487)

4,817,184)
–)))))
(3,739,702)
(1,013,911)
562,556)
(626,127)

232,602,658)
15,942,794)
(238,089,308)
(3,659,651)
–)))))

355,678,000)
(325,937,905)
(1,891,848)

10,820,270
–)))))
(3,659,651)

–)))))
–)))))
–)))))

6,796,493)
–)))))
–)))))

Taxable Income / (Loss)

27,848,247)

7,160,619)

–)))))

6,796,493)

Taxable Interest Income

3,339,059)

13,835,188)

–)))))

–)))))

Tax Rate:

1,957,820)
747,493)
950,745)

7,348,532)
–)))))
–)))))

–)))))
–)))))
–)))))

2,378,773)
–)))))
–)))))

Income Tax
3,656,059)
Social Responsibility Levy (2010/11 - 1.5%)
–)))))

7,348,532)
110,562)

–)))))
–)))))

2,378,773)
35,682)

3,656,059)

7,459,094)

–)))))

2,414,455)

For the year ended 31 March

8.3

Reconciliation between Taxable Profit and the Accounting Profits
Profit before Taxation
Consolidation Adjustments
Aggregate Disallowed Items
Aggregate Allowable Items
Tax Loss incurred/Claimed
Exempt Income
Exempt Business Profit
Tax Loss set - off

28% (2010/11 - 35%)
12% (2010/11 - 15%))
10%

Income Tax on Current Year Profits
9.

2012
Rs.

Earnings Per Share
The compution of the basic earnings per share is based on the profit attributable to ordinary shareholders for the year divided by the weighted average number of ordinary shares outstanding during the year and calculated as follows:
Group
Company
For the year ended 31 March
2012
2011
2012
2011
Profit attributable to the Ordinary
Shareholders (Rs.)
142,025,980)
Weighted Average Number of Ordinary Shares 23,400,000)

161,219,624)
23,400,000)

11,685,082)
23,400,000)

230,521,340)
23,400,000)

6.07)

6.89)

0.50)

9.85)

Earnings Per Share (Rs.)
9.1

Dividend Per Share
The dividend per share is based on the dividend paid during the year and the number of ordinary shares outstanding as at that date.
Group
Company
For the year ended 31 March
2012
2011
2012
2011
Dividend paid during the year (Rs.)
23,400,000)
Number of Ordinary Shares as at year end 23,400,000)

23,400,000)
23,400,000)

23,400,000)
23,400,000)

23,400,000)
23,400,000)

1.00

1.00)

1.00)

1.00)

Dividend Per Share (Rs.)

36

37

239,872,150

–)))))

As at 31 March

105,276,000

As at 31 March 2012

As at 31 March 2011

Written Down value

–)))))
–)))))
–)))))
–)))))

Accumulated Depreciation
As at 01 of April
Charge for the year
Acquisition of Subsidiaries
Disposals

239,872,150

21,177,939)

18,060,152)
3,117,787)
–)))))
–)))))

65,443,668 161,182,726

61,017,114 317,067,918 )

27,021,908

22,595,354
4,426,554
–)))))
–)))))

88,039,022 338,245,858 )

Rs.

Buildings

As at 31 March

Leasehold
Land
Rs.

88,039,022 179,242,878 )
–)))))
2 4 0 , 8 9 6)
– ) ) ) ) ) 192,897,600 )
– ) ) ) ) ) (25,321,250)
– ) ) ) ) ) (8,814,266)
–)))))
–)))))

Freehold
Land
Rs.

Cost / Valuation
As at 01 of April
105,276,000
Additions during the year
–)))))
Acquisition of Subsidiaries
107,752,400
Revaluation Adjustment
26,843,750
Transfers to Investment Property
–)))))
Disposal
–)))))

10.1 G r o u p

10. Property, Plant & Equipment

As at 31 st March 2012

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS

Plant &
Machinery
Rs.

5,617,460 194,383,306

6,059,164 459,017,380

– ) ) ) ) ) 225,586,603

– ) ) ) ) ) 165,439,552
– ) ) ) ) ) 25,976,902
– ) ) ) ) ) 34,170,149
–)))))
–)))))

6,059,164 684,603,983

5,617,460 359,822,858
4 4 1 , 7 0 4 84,900,333
– ) ) ) ) ) 239,880,792
–)))))
–)))))
–)))))
–)))))
–)))))
–)))))

Immature
Plantations
Rs.

Furniture &
Fittings
Rs.

9,984,882
1,542,932
1,894,646
–)))))

3,727,701

3,884,368

4,694,200

4,274,347

10,359,371 13,422,460

8,910,461
1,448,910
–)))))
–)))))

14,243,739 17,696,807

12,638,162 14,679,082
1,605,577
307,382
– ) ) ) ) ) 2,710,343
–)))))
–)))))
–)))))
–)))))
–)))))
–)))))

Electrical
Installation
Rs.

6,186,121)

21,410,967)

56,941,230)

19,698,689)
8,333,322)
28,909,219)
–) ) ) ) )

78,352,197)

25,884,811)
3,646,699)
48,900,687)
–) ) ) ) )
–) ) ) ) )
(80,000)

Rs.

Equipment

27,027,629)

40,277,187)

33,252,041)

16,186,051)
8,324,236)
9,601,754)
(860,000)

73,529,228)

43,213,680)
19,797,981)
11,717,567)
–)))))
–)))))
(1,200,000)

Motor
Vehicles
Rs.

115,000

–)))))

1,150,000

1,035,000
115,000
–)))))
–)))))

1,150,000

1,150,000
–)))))
–)))))
–)))))
–)))))
–)))))

Leased Motor
Vehicle
Rs.

835,563,952 )
220,759,272 )
603,859,389 )
1,522,500)
(8,814,266)
(1,280,000)

Tot al
2012
Rs.

388,911,552 )

261,910,141 )
53,285,643 )
74,575,768 )
(860,000)

–)))))

109,818,700 1,262,699,295 )

–)))))

–)))))
–)))))
–)))))
–)))))

109,818,700 1,651,610,847 )

–)))))
109,818,700
–)))))
–)))))
–)))))
–)))))

Capital Work
In Progress
Rs.

573,653,811)

261,910,141)

221,007,506)
42,437,995)
–)))))
(1,535,360)

835,563,952)

767,299,952)
60,996,718)
–)))))
–)))))
8,814,266)
(1,546,984)

Tot al
2011
Rs.

38

10.

–))))

–))))

–))))

–))))
–))))
–))))

–))))

–))))

–))))

As at 31 March 2012

Accumulated Depreciation
As at 01 April 2011
Charge for the year
Disposals

As at 31 March 2012

Written Down Value
As at 31 March 2012

As at 31 March 2011
–))))

–))))

–))))

–))))
–))))
–))))

–))))

–))))

Rs.

Buildings

–))))

Freehold
Land
Rs.

Cost / Valuation
As at 01 April 2011
Additions
Disposals

10.2 Company

Property, Plant & Equipment

As at 31st March 2012

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS

–))))

–))))

–))))

–))))
–))))
–))))

–))))

–))))

–))))

Plant &
Machinery
Rs.

–))))

–))))

–))))

–))))
–))))
–))))

–))))

–))))

–))))

Electrical
Installation
Rs.

–))))

–))))

–))))

–))))
–))))
–))))

–))))

–))))

–))))

Furniture &
Fittings
Rs.

–))))

–))))

–))))

–))))
–))))
–))))

–))))

–))))

–))))

RS.

Equipment

–))))

–))))

8,213,835

8,213,835
–))))
–))))

8,213,835

–))))

8,213,835

Motor
Vehicles
Rs.

–))))

–))))

8,213,835

8,213,835
–))))
–))))

8,213,835

–))))

8,213,835

Total
2012
Rs.

–))))

–))))

8,213,835)

8,302,923)
728,547)
(817,635)

8,213,835)

(817,635)

9,031,470)

Total
2011
Rs.

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
As at 31st March,
11.

Investment Property
11.1 Group

Land
Rs.

Buildings
Rs.

2012
Rs.

2011
Rs.

Balance as at the Beginning of the Year
On Acquisitions during the Year
Transfers during the year

26,534,340
596,927,000
5,054,160)

19,740,554)
_)))))))
3,760,106)

46,274,894)
596,927,000)
8,814,266)

55,089,160)
_)))))))
(8,814,266)

Balance as at the End of the Year

628,515,500

23,500,660)

652,016,160)

46,274,894)

11.1.1 The Company’s Investment Property has been accounted for as Property, Plant and Equipment in the Financial Statements of the
Group in view of it being owner occupied property from the Group’s point of view, and thereby changes in fair value adjusted respectively. 11.1.2 Rental Income earned from Investment Property by the Group amounted to Rs 600,000 (2010/11-Rs 600,000/-) and Direct Operating
Expenses incurred in relation to the Investment Property amounted to Rs 239,904/- (2010/11-Rs 255,725/-). Coco Hotels & Properties
(Pvt) Ltd hold its Land for capital appreciation.
11.2

Company

Land
Rs.

Buildings
Rs.

2012
Rs.

2011
Rs.

Balance at the Beginning of the Year
Change in Fair Value

53,687,500)
26,843,750)

39,048,400)
(25,321,250)

92,735,900)
1,522,500)

92,735,900)
_)))))))

Balance at the End of the Year

80,531,250)

13,727,150)

94,258,400)

92,735,900)

11.2.1 As described in note 2.6.2 to the Accounting Policies, fair value of Investment Properties will be determined once in every three years by an independent valuer. As at 31 March 2012, the Investment Properties were revalued by Mr. Leon Perera, Incorporated Valuer for Rs.94,258,400/- and the resultant gain of Rs. 1,522,500/- has been recognized in the Income Statement of the Company.
11.2.2 Rental income earned from Investment Property by the Company during the year amounted to Rs.2,520,000/- (2010/11 Rs.2,520,000/-) and direct Operating Expenses incurred in relation to the Investment Property amounted to Rs.40,326/-.(2010/11
- Rs. 40,326/-).
12.

Investment in Subsidiaries
Company

Number of
Shares

Renuka Agrifoods Ltd
Coco Hotels & Properties (Pvt) Ltd

201,000,000)
10)

Holding
%

2011
Rs.

199,572,082)
285,000,000)

199,572,072)
_)))))))

484,572,082)
12.1

50.09%
50.00%

Company
2012
Rs.

199,572,072)

Acquisitions during the Year
During the year, Renuka Agri Foods PLC, 50.09% owned subsidiary of Coco Lanka PLC, acquired 76% ownership of Richlife Dairies Limited
(RDL) with an investment of Rs. 505,000,000/-.
During the year, Coco Lanka PLC acquired 50% ownership of Coco Hotels & Properties Group (CHPL) with an investment of Rs. 285,000,000/-.
RDL
(Rs.)

a)

Identifiable assets acquired and liabilities assumed
Property, Plant & Equipment
Investment Property - Land
Inventories
Trade & Other Receivables
Related Party Receivables
Income Tax Receivables
Short Term Investments
Cash in Hand & at Bank
Retirement Benefit Obligations
Deferred Tax Liability
Borrowings
Finance Lease Creditors
Trade & Other Payables
Related Party Payables
Bank Overdrafts

CHPL Group
(Rs.)

Total
(Rs.)

529,283,621)
–)))))))
26,298,123)
43,746,910)
–)))))))
3,573,502)
5,000,000)
846,343)
(6,877,837)
(37,758,332)
(29,600,742)
(687,949)
(167,589,217)
_)))))))
(51,172,585)

–)))))))
596,927,000)
_)))))))
143)
159,159,800)
–)))))))
207,183)
200)
_)))))))
_)))))))
_)))))))
_)))))))
(11,205)
(186,005,000)
(1,543)

529,283,621)
596,927,000)
26,298,123)
43,747,053)
159,159,800)
3,573,502)
5,207,183)
846,543)
(6,877,837)
(37,758,332)
(29,600,742)
(687,949)
(167,600,422)
(186,005,000)
(51,174,128)

315,061,837)

c)

570,276,578)

885,338,415)

Analysis of Net Cash Outflow in respect of Acquisitions
Cash Consideration
505,000,000)
Cash & Cash Equivalents Acquired
45,326,242)

285,000,000)
(205,840)

790,000,000)
45,120,402)

550,326,242)

b)

284,794,160)

835,120,402)

Share of Net Assets Acquired
Goodwill/ (Excess) on Acquisition

Majority
(Rs.)
(Rs.)
119,947,280)
285,138,289)
133,024,682)
(138,289)

Minority
(Rs.)
480,252,846)
(228,224,808)

Total
(Rs.)
885,338,415)
(95,338,415)

Satisfied by Cash Consideration

252,971,962)

252,028,038)

790,000,000)

Analysis of Net Assets between Majority & Minority

285,000,000)

39

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
As at 31st March,
12.2 Controlling Interest of Renuka Products (Pvt) Ltd (Extract from the shareholders agreement)
As at 31 March 2012 Renuka Agrifoods PLC (50.09% subsidiary of Coco Lanka PLC) owns 37.5% of the shareholding of
“Renuka Products (Pvt) Ltd” which amounts to 150,000 shares and Shaw Wallace Ceylon Limited owns 62.5% of the shareholding of Renuka Products (Pvt) Ltd which amounts to 250,000 shares, making both companies together holding
100% shareholding in Renuka Products (Pvt) Ltd. Renuka Agrifoods PLC and Shaw Wallace Ceylon Limited have entered into this Agreement on 31 August 2011 to guarantee achieving the objective of setting forth the terms and conditions under which both parties intend to co-operate and participate jointly in granting the authority to Renuka Agrifoods
PLC to appoint members to the Board of Directors of Renuka Products (Pvt) Ltd.
The above agreement is pursuant to the fact that as at 31 March 2011 Renuka Organics (Pvt) Ltd (100% subsidiary of
Renuka Agrifoods PLC) held 100% shareholding of Renuka Products (Pvt) Ltd, making Renuka Products a subsidiary of
Coco Lanka PLC. Further, subsequent to the balance sheet date, the Board of Directors of Renuka Products (Pvt) Ltd has resolved to increase the shareholding of Renuka Agrifoods PLC in Renuka Products to 50%.
As per the above agreement, Renuka Agrifoods PLC still has the control to govern the financial and operating policies of Renuka Products (Pvt) Ltd, as per SLAS 25 (Revised 2005) - “Business Combinations”, the Company has therefore accounted for Renuka Products (Pvt) Ltd as a Subsidiary, in the concolidated financial statements.
Group
As at 31st March,
13.

2012
Rs.

Company
2012
Rs.

2011
Rs.

2011
Rs.

Intangible Assets
13.1 Goodwill
Balance as at the beginning of the year
On Acquisitions during the year

30,225,305)
133,024,682)

30,225,305)
–))))))

–))))))
–))))))

–))))))
–))))))

Balance as at the end of the year

163,249,987)

30,225,305)

–))))))

–))))))

13.1.1Goodwill on acquisition as at the Balance Sheet date has been tested for impairment and no impairment was found in carrying value. Recoverable values have been estimated based on fair value less cost to sell and value in use for the above test.
13.2 Computer Software
Balance as at the Beginning of the Year
Additions made during the year
Amortization during the year

–))))))
–))))))
–))))))

10,918,522)

–))))))

–))))))

–))))))

Inventories
Raw Materials & Consumables
Finished Goods
Harvested Crops
Spares & Consumables
Packing Material & Chemicals
Tea Flavours
Tea Stock
Blended Tea Stock
Work in Progress
Goods in Transit

40,266,729)
130,736,001)
5,801,152)
9,603,564)
75,795,546)
166,614)
4,352,946)
614,715)
40,141,497)
11,338,626)

25,415,630)
102,503,913)
8,201,310)
2,356,619)
73,685,241)
369,682)
4,208,484)
2,442,137)
30,257,012)
4,485,866)

–))))))
–))))))
–))))))
–))))))
–))))))
–))))))
–))))))
–))))))
–))))))
–))))))

–))))))
–))))))
–))))))
–))))))
–))))))
–))))))
–))))))
–))))))
–))))))
–))))))

318,817,390)
(1,089,370)

253,925,894)
(3,321,946)

–))))))
–))))))

–))))))
–))))))

317,728,020)

250,603,948)

–))))))

–))))))

Trade & Other Receivables
Trade Debtors & Bills Receivable
VAT Recoverable
Deposits & Pre-Payments
Taxes Recoverable
Advances Payments
Receivable from Brokers
Staff Loan and Advances
Other Receivables

116,505,554)
6,657,526)
90,507,475)
12,964,953)
2,754,876)
376,469)
–))))))
15,371,480)

83,966,803)
10,609,341)
22,397,945)
2,712,066)
431,453)
257,637)
168,371)
13,648,544)

–))))))
1,599,980
180,000
19,241
–))))))
–))))))
–))))))
274,953

–))))))
1,808,018
180,000
356,935
–))))))
–))))))
–))))))
–))))))

Provision for doubtful debts

245,138,333)
(7,889,011))

134,192,160)
(600,000))

2,074,174
–))))))

2,344,953
–))))))

237,249,322)

40

–))))))
–))))))
–))))))

(-) Provision for Slow moving items

15.

–))))))
–))))))
–))))))

Balance as at the End of the Year
14.

–))))))
13,648,153)
(2,729,631)

133,592,160)

2,074,174

2,344,953

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
Group
As at 31st March,
16.

Amounts due from Subsidiary Companies
Coco Resorts & Villas (Pvt) Limited
Renuka Agri Foods PLC
Coco Hotels & Properties (Pvt) Ltd
Renuka Organics (Pvt) Ltd
Renuka Products (Pvt) Ltd

2012
Rs.

Company
2012
Rs.

2011
Rs.

2011
Rs.

–)))))

231,455,048)

2,788,208)

6,189,551)
159,370,940)
7,800,000)
42,653,522)
–)))))
–)))))

2,054,500)
2,500,000)
1,800,000)
–)))))
8,869,323)
186,000,000)

–)))))
–)))))
–)))))
–)))))
–)))))
–)))))

–)))))
–)))))
–)))))
–)))))
2,710,964)
186,000,000)

201,223,823)

–)))))

188,710,964)

77,265,000)
32,265,000)
45,922,950)
10,786,760)
9,197,130)
640,800)
–)))))
–)))))

53,700,000)
45,000,000)
15,908,680)
76,038,000)
14,415,000)
2,007,500)
1,570,000)
1,464,000)

77,265,000)
32,265,000)
45,922,950)
10,786,760)
9,197,130)
640,800)
–)))))
–)))))

53,700,000)
45,000,000)
15,908,680)
76,038,000)
14,415,000)
2,007,500)
1,570,000)
1,464,000)

210,103,180)

176,077,640)

210,103,180)

201,879,280)
(25,801,640)

204,108,446)
5,994,734)

201,879,280)
(25,801,640)

204,108,446)
5,994,734)

176,077,640)

210,103,180)

176,077,640)

210,103,180)

17,419,585)
15,812,177)
49,469,076)

15,406,035)
106,502,411)
51,201,256)

3,902,301)
203,236)
1,190,321)

2,285,208)
386,448)
11,667,905)

82,700,838)

173,109,702)

5,295,858)

14,339,561)

Short Term Investments
18.1 Investment in Quoted Companies
Carried at Market Value
Ceylon Tobacco PLC
Distilleries Co. of Ceylon PLC
DFCC Bank PLC
Hatton National Bank PLC
Sampath Bank PLC
Lankem Ceylon PLC
Royal Ceramic PLC
Lanka Ceramic PLC

Cost
Gain / (Loss) on Change in Market Value

19.

–)))))
–)))))
–)))))
1,235,250)
1,552,958)

176,077,640)

18.

29,860)
44,000,188)
187,425,000)
–)))))
–)))))

216,014,013)

Amounts due from Related Companies
Renuka Travels & Tours (Pvt) Ltd
Renuka Holdings Ltd
Renuka Enterprises (Pvt) Ltd
Shaw Wallace Food Services (Pvt) Ltd
Renuka Agro Exports Limited
Coco Hotels & Properties (Pvt) Ltd

–)))))
–)))))
–)))))
–)))))
–)))))

–)))))
17.

–)))))
–)))))
–)))))
–)))))
–)))))

Cash & Cash Equivalents
19.1 Favourable Balances
Call Deposits
Short Term Deposits
Cash at bank & in hand

19.2 Unfavourable Balances
Bank Overdraft

21.

Reserves
Revaluation Reserve

(30,675)

–)))))

158,726,270)

5,265,183)

14,339,561)

552,074,972)

552,074,972)

552,074,972)

552,074,972)

552,074,972)

Stated Capital
23,400,000 Ordinary Shares

(14,383,432)

(24,969,444)
20.

(107,670,282)

552,074,972)

552,074,972)

552,074,972)

22.

77,933,500)

73,185,107)

–)))))

–)))))

77,933,500)

73,185,107)

–)))))

–)))))

Deferred Tax Liability
As at the Beginning of the Year
On Acquisition of Subsidiaries
Origination and Reversal of Temporary Differences

24,699,539)
37,758,332)
(11,766,266)

26,916,169)
–))))))
(2,216,630)

7,815,888)
–))))))
(6,867,898)

8,149,024)
–))))))
(333,136)

Balance as at the End of the Year

50,691,605)

24,699,539)

947,990)

7,815,888)

41

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
Group
2012
Rs.

As at 31st March,
22.1 Temporary Differences
On Property Plant and Equipment
On Retirement Benefit Obligation
On Carried Forward Tax Losses

Company
2011
Rs.

2012
Rs.

2011
Rs.

159,737,887)
(14,823,372)
(5,228,753)

180,787,150)
(6,988,901)
(5,187,268)

9,339,379)
(724,949)
(5,228,753)

33,731,749)
(630,614)
(5,187,268)

139,685,762)

3,385,677)

27,913,867)

50,691,605)
(37,758,322)
(24,699,539)

24,699,539)
–))))))
(26,916,169)

947,990)
–))))))
(7,815,888)

7,815,888)
–))))))
(8,149,024)

Reversal for the Year

(11,766,256)

(2,216,630)

(6,867,898)

(333,136)

Interest Bearing Borrowings
Balance as at the Beginning of the year
On Acquisition of Subsidiaries
Addition During the year
Payments During the year

16,308,999)
29,600,742)
306,382,354)
(12,028,230)

20,628,770)
–))))))
–))))))
(4,319,771)

–))))))
–))))))
–))))))
–))))))

–))))))
–))))))
–))))))
–))))))

Payable within one year

340,263,865)
(222,699,678)

16,308,999)
(3,208,356)

–))))))
–))))))

–))))))
–))))))

Payable after one year

23.

168,610,981)

Tax Effect
On Acquisition of Subsidiaries
Tax Liability Carried Forward

117,564,187)

13,100,643)

–))))))

–))))))

23.1 Renuka Agri Foods PLC
Details of loans obtained by the Company are set out below.
Financial
Institution
DFCC Bank

Facility Obtained
Boiler Loan

Outstanding
Balance(Rs.)
13,100,651

Interest Rates

Repayment Terms

Assets Pledged

AWPR + 6.5% p.a To be paid in 72
Primary mortgage installments with a grace over leasehold rights period of 24 months of of an allotted plot
Rs.267,363/- starting from of land depicted on
July 2008.
28 lot no 28.
Yatadawala.
National
Medium Term Loan 98,163,487 1year LIBOR+
24 equal monthly
Primary Mortgage
Development
installments bond No.452 dated
Bank
3.75 p.a
0f USD 40,625 each
14/06/2005 over stock and book debts for USD. 740,000.
Letters of credits 102,247,506 3Month LIBOR+
120 Days(Maximum)
Agreement to
4% p.a mortgage with power of Attorney over stocks and book debts for USD
1,180,000/-.
Corporate guarantee from Renuka Agro exports Limited for
USD. 940,000.
HSBC
Packing credit
77,480,388 1 or 3 months
Repayable on demand
Corporate Guarantees loan LIBOR+3.5% p.a for USD 1,000,000 from Coco Lanka PLC and LKR 25,000,000 from Rich Life Dairies
Ltd.Letter of set off / Memo of deposit dated 26
February 2010.
Packing credit
24,083,443 1 or 3 months
Repayable on demand
Letter of set off / loan LIBOR+ 3.5% p.a
Memo of deposit dated 26 February
315,075,475
2010.
23.2 Richlife Dairies Limited
Details of loans obtained by the Company are set out below.
Financial
Facility Obtained
Outstanding Interest Rates
Institution
Balance(Rs.)
Bank of
Import Loan
9,721,000 16.5%
Ceylon
Facility

Long Term Loans
Long Term Loans

15,241,740

6.5%

225,650

14%

25,188,390
340,263,865

42

Repayment Terms

Assets Pledged

3 Months

Primary Mortgage over the property held at Pirivena
Road, Molligoda,
Wadduwa.

Repayable over 96 equal monthly installments.
To be paid in 66 equal monthly installments.

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
Group
2012
Rs.

As at 31st March,
24.

Company
2011
Rs.

2012
Rs.

2011
Rs.

Finance Lease Obligations
Balance Payable as at 31st March
Lease Rentals Payables within one year

67,649,768)
(2,163,702)

71,373,744)
(2,123,744)

–))))))
–))))))

–))))))
–))))))

Lease Rentals Payables after one year

65,486,066)

69,250,000)

–))))))

–))))))

67,000,000)
649,768)

71,373,744)
–))))))

67,649,768)

71,373,744)

69,000,000)
(2,000,000)

73,350,000)
(2,100,000)

Payable on lease as at 31st March
Lease rentals payable within one year

67,000,000)
(2,000,000)

71,250,000)
(2,000,000)

Lease rental payable after one year

65,000,000)

69,250,000)

128,079)
(128,079)

347,643)
(219,564)

Balance payable as at the end of the year
Interest in suspense

–))))))
–))))))

128,079)
(4,335)

Lease rentals payable within one year

–))))))
–))))))

123,744)
(123,744)

Lease rental payable after one year

–))))))

–))))))

24.3 Richlife Dairies Limited
Plant and Machinery Balance Payable
Balance payable as at the beginning of the year
On Acquisitions during the Year
Paid during the Period

–))))))
687,949)
(38,181)

–))))))
–))))))
–))))))

Balance payable as at the end of the year
Lease rentals payable within one year

649,768)
(163,702)

–))))))
–))))))

Lease rental payable after one year

486,066)

–))))))

24.1 Finance Lease Obligations As At 31 st March
Kandy Plantations Ltd (24.2)
Richlife Dairies Limited (24.3)

24.2 Kandy Plantations Ltd
Land
Balance payable as at the beginning of the year
Payments made during the period

Motor Vehicle
Balance payable as at the beginning of the year
Paid during the year

24.4 Kandy Plantations Ltd
Details of the finance leases obtained by the Company are set out below.
Financial
Institution

Facility Obtained Outstanding
Balance (Rs.)

John Leo De Finance Lease
Croos Trust

Interest Rates

67,000,000



Repayment Terms

Assets Pledged

To be paid over a period of 30 years under two separate lease agreements.
The first lease agreement relates to 10 years period from 1st April 2003 to
31st March 2013 and the second lease agreement relates to the next 20 years commencing from 1st April
2013 and ending on
31st March 2033.



24.5 Richlife Dairies Limited
Details of the finance leases obtained by the Company are set out below.
Financial
Institution

Facility Obtained Outstanding
Balance (Rs.)

Interest Rates

Repayment Terms

Assets Pledged

Bank of
Ceylon

Finance Lease

15%

Repayable over 60 equal monthly installments



67,649,768
67,649,768

43

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
Group
As at 31st March,
25.

2012
Rs.

2011
Rs.

Company
2012
Rs.

2011
Rs.

Retirement Benefits Obligation
At the beginning of the year
On Acquisition of Subsidiaries
Charge for the year
Payment made during the year

11,379,879)
6,877,837)
7,029,828)
(1,048,585)

9,673,753)
–))))))
3,074,173)
(1,368,047)

630,614)
–))))))
170,285)
(75,950)

556,049)
–))))))
149,490)
(74,925)

As at the end of the year

24,238,959)

11,379,879)

724,949)

630,614)

1,365,589)
2,491,626)
3,172,613)

1,560,905)
1,873,589)
(360,321)

75,674)
66,789)
27,822)

66,726)
59,931)
22,833)

7,029,828)

3,074,173)

170,285)

149,490)

25.1 Expenses on Retirement Benefits Obligations
Interest Cost for the period
Current Service Cost for the period
Actuarial (Gain) / Loss on PV-DBO

25.2 Gratuity Liability is based on the Actuarial Valuation carried out by M/S. Actuarial and Management Consultants
(Pvt) Limited. Actuaries, on 31 March 2012, as per the SLAS 16 (Revised 2006) Employee Benefits. The Principal assumptions used in the 2011 actuarial valuation are as follows;
Retirement Age
55%
Discounting Rate
11%
Salary Increment Rate
10%
Group
As at 31st March,

26.

2012
Rs.

2011
Rs.

Company
2012
Rs.

2011
Rs.

Trade and Other Payables
Trade Creditors
81,271,384)
Tax Payables
2,023,451)
Staff Creditors
1,235,505)
Accrued Expenses
11,238,694)
Payable to Tetra Pak South Asia (Pvt) Ltd (Note.26.1) 46,064,355)
Other Payables
173,838,262)

48,835,926
8,386,614
373,213
13,369,637
–))))))
3,667,779

–))))))
905,184
–))))))
319,576
–))))))
1,138,175

297,471
2,265,445
–))))))
281,768
–))))))
849,538

315,671,651)

74,633,169

2,362,935

3,694,222

26.1 This balance represents a packing material rebate to be granted by Tetra Pack South East Asia (Pte) Ltd to Richlife
Dairies Ltd on timely settlement of overdue amount on capital equipment payable to Tetra Pack South East Asia (Pte)
Ltd by 31st March 2013.
27.

Amounts Due to Subsidiary Companies
Renuka Agri Foods PLC

44

Dividend Payable
Unclaimed Dividends

17,532,011

–))))))

–))))))

17,532,011

47,829,482)
4,800)
4,815,614 )
–))))))

4,369,027
4,800
–))))))
5,000

35,129,860
–))))))
–))))))
–))))))

–))))))
–))))))
–))))))
–))))))

4,378,827

35,129,860

–))))))

1,816,549 )

2,161,941

1,816,549

1,486,941

1,816,549 )

29.

–))))))

52,649,896)

Amounts Due to Related Companies
Renuka Agro Exports Ltd
Renuka Travels & Tours (Pvt) Ltd
Shaw Wallace Ceylon Ltd
Renuka Group Ltd

–))))))

–))))))
28.

–))))))

2,161,941

1,816,549

1,486,941

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
As at 31 March
30.

Related Party Transactions
The company Carries out transactions with parties who are defined as related parties in Sri Lanka Accounting Standard
30 ‘Related Party Disclosures’ (Revised 2005), the details of which are reported below.
30.1 Parent and Ultimate Control Party
The parent of the company is Renuka Agro Exports Ltd and ultimate parent of the company is Renuka Group
Limited.
30.2 Transactions With Related Companies
Company

Name of the director

Nature of Transactions

Renuka Agri Foods PLC

Dr. S.R. Rajiyah
Fund Transfers
Mrs. I.R. Rajiyah
Mr. S.V, Rajiyah
MR. S. Vasanthakumara
Mr. C.J.De.S. Amaratunge
Mr. L. M. Abeywickrema

Coco Hotels &
Properties Ltd

Mr. S.V, Rajiyah
Dr. S.R. Rajiyah
Mrs. I.R. Rajiyah

Amount Received / (Paid)
2012
2011
Rs
Rs
61,532,200)

29,675,000)

–)
1,425,000)

(285,000,000)
(186,000,000)

Renuka Organics (Pvt) Ltd Mr. S.V, Rajiyah
Fund Transfers
Dr. S.R. Rajiyah
Mrs. I.R. Rajiyah
MR. S. Vasanthakumara

(1,235,250)

1,213,170)

Renuka Teas (Ceylon) Ltd Mr. S.V, Rajiyah
Fund Transfers
Dr. S.R. Rajiyah
Mrs. I.R. Rajiyah
MR. S. Vasanthakumara

–)))))

(18,803,600)

(37,840,824)

(27,421,693)

Fund Transfers

29,860)

–)))))

Renuka Products (Pvt) Ltd. Mr. S.V, Rajiyah
Fund Transfers
Dr. S.R. Rajiyah
Mrs. I.R. Rajiyah
MR. S. Vasanthakumara

(1,552,957)

(4,572,425)

Investment in Shares
Fund Transfer

Renuka Agro Exports Ltd

Mr. S.V, Rajiyah
Fund Transfers
Dr. S.R. Rajiyah
Mrs. I.R. Rajiyah
Mr. C.J.De.S. Amaratunge

Coco Resorts & V illas
(Pvt) Ltd

Mr. S.V, Rajiyah
Dr. S.R. Rajiyah
Mrs. I.R. Rajiyah

30.3 Transactions with Key Management Personnel
According to Sri Lanka Accounting Standards 30 (Revised 2005) Related Party Disclosure “ Key Management Personnel, are those having authority and responsibility for planning, directing and controlling the activities of the entity.
Accordingly, the Board of Directors (including Executive & Non - Executive Directors) of the Company has been classified as Key Management Personnel of the Company. The transactions with Key Management Personnel are as follows.
Group

Company
2012
Rs.

2012
Rs.
Short Term Employee Benefits
Rent Paid

2011
Rs.

4,280,000
3,600,000

2,810,000
–)))))

175,000
–)))))

45,000
–)))))

7,880,000

2,810,000

175,000

45,000

2011
Rs.

45

46



Coco Lanka PLC

Renuka Agri Foods PLC

Renuka Teas (Ceylon) Ltd

Renuka Organics (Pvt) Ltd

Kandy Plantations Ltd.

Renuka Products (Pvt) Ltd

Campbell Teas (Pvt) Ltd.

RAFL

RTL

ROL

KPL

RPL

CTL

Mr. M Terfloth

CLP



Mr.J.E Brenan

Mr. T. K. Bandaranayake





















ROL











KPL

RTRL

CRVL

CHPL

RDL

CBL

CFL















RPL







CTL

















RTL

Mr. Wijedasa Rajapaksha


RAFL







CLP

Mr S.Vasantha Kumara

Mr L.M.Abeywickrama

Mr S.V.Rajiyah

Mr C.J.De.S.Amaratunge

Mr P.C.K.Abeykoon

Mrs I.R.Rajiyah

Dr S.R.Rajiyah (Chairman)

Name of Director

30.4 Directorate of Group companies

As at 31st March,

For the year ended 31st Mach 2012

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS















CFL

















CBL

Coco Resorts & Villas Limited

Coco Hotels & Properties Ltd

Richlife Dairies Limited

Ceylon Botanical (Pvt) Ltd

Ceylon Forestry (Pvt) Ltd

Renuka Trading (Pvt) Ltd

















RTRL











RDL

















CHPL

















CRVL

Coco Lanka PLC
NOTES TO THE FINANCIAL STATEMENTS
31.

Contingent Liabilities
There were no significant contingent liabilities outstanding as at the balance sheet date that require disclosures in the Financial Statement other than the legal cases disclosed below;
Coco Lanka PLC
During the year 2001, a case was filed by Renuka Hotels Ltd. against seven respondents including the
Company and Renuka Agrifoods PLC. (Case No. H.C.(Civil) 4/2001 (2) in the Commercial High Court under section 210, 211 and 213 of the Companies Act, with regard to the investment made by the Company in the above name subsidiary. This action was dismissed with cost to defendants. However the legal consultants are of the view that there is a strong likelihood of the outcome of this case in favour of Coco Lanka PLC in the appeal.
Renuka Agrifoods PLC
The Company is a Respondent in case No.H.C.(Civil) 4/2001 (2) in the Supreme Court of Colombo. The case was filed against Coco Lanka PLC for the investment made in Renuka Agri Foods PLC. There is no monitory claim made by the petitioner against the Company.
Kandy Plantations Ltd
Land Reform Commission has filed a case in the District Court of Attanagalla against the Trustees of John
Leo De Cross Trust & the Company. In the Opinion of the Lawyers, that there is a strong likelihood of the outcome of this case being in favour of the trustees, the John Leo De Cross Trust.

32.

Capital Commitments
There were no material commitments as at the Balance Sheet date that require disclosure in the Financial
Statements other than the disclosed below;
Renuka Products (Pvt) Ltd.
The Renuka Agri Foods PLC has entered into a lease agreement with Coco Lanka PLC on 4th March 2009 to use Coco Lanka PLC’s land and factory premises called “Straatenwyk Estate” for a period of 10 years from
1st April 2009 to 31st March 2019. The total amount that becomes payable by Renuka Products (Pvt) Ltd after
1st April 2012 under the above agreement is Rs.26,043,601/-. However at Group’s point of view this transaction will be eliminated.
2012
2011
Rs.
Rs.
2,898,000
14,330,610
8,814,991

2,898,000
13,396,005
12,647,596

26,043,601

Not Later than one year
Later than one year and not later than five years
Later than five years

28,941,601

Kandy Plantations Ltd.
The estimated capital expenditure of Rs. 400,000/- contracted for at the end of the year but not provided for.
33.

Events occurring after the Balance Sheet Date
There have been no material events occurring after the Balance Sheet date that require adjustments to and/or disclosures in the Financial Statements other than the disclosed below;
Coco Lanka PLC
The board of directors has proposed a final dividend of Rs.1/- per share totalling to Rs.23,400,000/-, subject to the approval of the shareholders at the Annual General Meeting.
Renuka Agrifoods PLC
The Company has made a right issue of 160,500,000 shares at an issue price of Rs.4/- per share in June 2012.
The Directors have decided to increase the shareholding of Renuka Agri Foods PLC at Renuka Products (Pvt) to 50%.

34.

Comparative Information
The previous year’s figures have been re-arranged wherever necessary to confirm to the current year’s presentation and disclosure.

47

Coco Lanka PLC
SEGMENTAL REPORT
Agribusiness Sector

Investment Sector

31.03.2012
Rs.

31.03.2011
Rs.

Turnover
Total
Intra Group

2,009,613,538
37,706,054

External

Group

31.03.2012
Rs.

31.03.2011
Rs.

1,284,333,997
34,206,724

39,567,535)
22,620,000)

808,255,728
–)))))))

2,049,181,073)
60,326,054)

2,092,589,725)
34,206,724)

1,971,907,484

1,250,127,273

16,947,535)

808,255,728

1,988,855,019)

2,058,383,001)

–)))))))

–)))))))

(25,801,640)

5,944,734

(25,801,640)

5,994,734)

Profit before Finance Cost
Finance Cost

351,255,728
33,372,218

136,196,121
1,969,544

4,817,184)
–)))))))

233,049,270
446,612

356,072,912)
33,372,218)

369,245,391)
2,416,156)

Profit/(Loss) before Taxation

317,883,510

134,226,577

4,817,184)

232,602,658

322,700,694)

366,829,235)

(28,513,507))

(133,760,998)

294,187,187)

233,068,237)

Mark of Market Value Adjustment

Consolidated Adjustment

Total assets
Fixed Assets including Investment
Property
Non Interest Bearing Labilities
Defered Taxation
Retirement Benefit Obligation
Trade & Other Payable

48

31.03.2012
Rs.

31.03.2011
Rs.

2,124,920,595

908,191,985

993,733,202)

995,594,838

3,118,653,797)

1,903,786,823)

1,820,457,055

527,192,805

94,258,400)

92,735,900

1,914,715,455)

619,928,705)

49,743,615
23,514,010
313,308,716

16,883,651
10,749,265
70,938,946

947,990)
724,949)
2,362,935)

7,815,888
630,614
3,694,223

50,691,605)
24,238,959)
315,671,651)

24,699,539)
11,379,879)
74,633,169)

49

Investment Properties

Propoerty. Plant & Equipment

Classification

Coco Lanka PLC
REAL ESTATE PORTFOLLO

Colombo 03

Colombo 09

Renuka Trading (Pvt) Ltd.

Ekala Ja-ela

Coco Hotels & Properties Ltd.

Wadduwa

Richlife Dairies Ltd.

Wathupitiwala

Matale

Ceylon Botanical (Pvt) Ltd.

Renuka Agri Foods PLC

Diwuldeniya

Location

Kandy Plantation Limited

Name of the Company

Coco Lanka PLC

670

102,552

Lease Hold

214.75

85.19

75.61

681.5

10,842

Free Hold

Land Perchaes

9

3

6

9

4

No. of
Buildings

29,919

34,705

44,200

81,363

8,094

Building in
(Sq.ft)

94,250,000

569,927,000

110,178,320

300,650,000

91,547,149

20,000,000

75,347,403

Cost/Valuation

Value (Rs.)

Coco Lanka PLC
FIVE YEAR SUMMARY
Year Ended 31st March

2012
Rs’000

2011
Rs’000

2010
Rs’000

2009
Rs’000

2008
Rs’000

1,988,855
632,403
327,559
294,187
7,591
301,778

2,058,383
372,952
235,484
233,068
(5,515)
227,553

1,284,948
395,222
215,788
205,198
(8,131)
197,067

1,423,065
337,045
175,368
144,132
(14,921)
129,212

1,236,952
193,702
58,886
11,817
1,329
13,146

142,026

161,220

147,416

83,798

10,041

552,075
77,933
713,987

552,075
73,185
593,899

552,075
73,185
321,786

192,075
73,185
154,196

192,075
73,185
71,190

1,343,996

1,219,159

947,046

419,456

336,450

814,006

450,297

461,249

191,948

138,423

2,158,001

1,669,456

1,408,295

611,404

474,873

Liabilities
Non-Current Liabilities
Current Liabilities

257,981
702,672

118,430
115,901

125,164
110,492

158,861
170,085

178,647
365,857

Total Liabilities

960,653

234,331

235,656

328,946

544,504

3,118,654

1,903,787

1,643,952

940,350

1,019,377

1,262,699
652,016

573,654
46,275

546,292
55,089

489,975

519,139

174,169
1,029,770

30,225
968,633

30,225
1,012,345

28,707
421,668

75
28,456
471,707

3,118,654

1,903,787

1,643,952

940,350

1,019,377

6.07
15.17%
57.44
1.00
20.42%
4.90
40.15
1.47
7.82%
13.98%

6.89
11.05%
52.10
1.00
21.89%
4.57
97.47
6.75
4.70%
13.63%

10.21
15.34%
40.47
1.00
15.52%
6.45
20.38
9.16
5.92%
13.99%

6.11
9.08%
33.29

1.21
1.06%
26.70

6.16
2.48
17.17%
21.13%

1.58
1.29
24.56%
2.77%

A) Summary of the Operation
Revenue
Gross Profit
Profit before Finance Cost and Tax
Profit before Taxation
Taxation
Profit after Tax
Profit attributable to Equity Holders of the Company
B) Summary of Financial Position
Capital and Reserves
Stated Capital
Capital Reserves
Retained Earnings
Shareholders’ Fund
Minority Interest
Total Equity

Total Equity and Liabilities
Assets
Property, Plant and Equipments
Investment Properties
Investments
Other Non-Current Assets
Current Assets
Total Assets
C) Key Indicators
Earnings per share (Rs.)
Net Profit Margin (%)
Net Assets per Share (Rs.)
Dividends per share (Rs.)
Dividends Payout (%)
Dividend Cover (Times)
Interest Cover (Times)
Current Ratio (Times)
Gearing (%)
Return on Equity (%)

50

Coco Lanka PLC
SHARE HOLDERS INFORMATION
STOCK EXCHANGE LISTING
The issued ordinary shares of Coco Lanka PLC are listed on the Main Board of the Colombo Stock Exchange (CSE) in Sri Lanka.
SHARE HOLDERS INFORMATION
Total No of Shareholders
Total No of Shares

2012
Voting Non Voting
3987
626
21,600,000
1,800,000

2011
Voting Non Voting
4083
764
21,600,000 1,800,000

31st March 2012

Voting Shares

31st March 2011

No of
Shareholders

%

1,000
10,000
100,000
1,000,000
Over

3446
401
122
16
2

713,571
1,316,761
3,874,824
4,765,193
10,929,651

3.30
6.09
17.94
22.06
50.60

TOTAL

1
1001
10,001
100,001
1,000,001

No of
Shares

3,987

21,600,000

100

No of
Shareholders

No of
Shares

%

3488
457
122
15
1

761,196
1,506,472
3,945703
4,456,978
10,929,651

3.52
6.98
18.27
20.63
50.60

4,083

21,600,000

100

31st March 2012
Analysis of
Shareholders
Voting

31st March 2011

TOTAL

No of
Shares

%

No of
Shareholders

No of
Shares

%

3,861
126

Individuals
Institutions

No of
Shareholders

17,882,631
3,717,369

82.79
17.21

3,939
144

6,562,932
15,037,068

30.38
69.62

3,987

21,600,000

100

4,083

21,600,000

100

31st March 2012

31st March 2011

Analysis of
Shareholders
Voting

No of
Shareholders

No of
Shares

%

No of
Shareholders

No of
Shares

%

Residence
Non Residence

3,965
22

21,486,550
113,450

99.48
0.52

4,057
26

21,340,570
259,430

98.8
1.20

3,987

21,600,000

100

4,083

21,600,000

100

TOTAL

31st March 2012

Non Voting Shares

No of
Shareholders
1
1001
10,001
100,001

No of
Shares

31st March 2011
%

No of

No of
Shareholders

%
Shares

1,000
10,000
100,000
Over

495
105
22
4

103,355
345,789
595,605
755,251

5.74
19.21
33.09
41.96

589
150
23
2

155,916
519,779
551,854
572,451

8.66
28.88
30.66
31.8

TOTAL

626

1,800,000

100

764

1,800,000

100

51

31st March 2012
Analysis of
Shareholders
Voting

No of
Shareholders

31st March 2011

1,087,831
712,169

60.43
39.57

716
48

1,153,371
646,629

64.08
35.92

626

TOTAL

%

580
46

Individuals
Institutions

No of
Shares

No of
Shareholders

1,800,000

100

764

1,800,000

100

31st March 2012
Analysis of
Shareholders
Non Voting

No of
Shareholders

Residence
Non Residence
Total

No of
Shares

%

31st March 2011

No of
Shares

%

No of
Shareholders

No of
Shares

%

612
14

1,593,659
206,341

88.54
11.46

751
13

1,673,395
126,605

92.97
7.03

626

1,800,000

100

764

1,800,000

100

PUBLIC SHARE HOLDING
The percentage of shares held by the public
Share Trading Information
1st April to 31st March
Highest (Rs)
Lowest (Rs)
As at 31st March
Market Capitalization
As at 31st March (Rs 000)
No of Trades
No of Shares traded
Value of shares traded (Rs)
Dividends
Proposed/paid final dividend (Rs)

Voting (%)
2012
2011

49.07
49.07

2011/2012
Voting
Non Voting
58.00
45.00
40.00
30.00
52.30
34.00

Non Voting (%)
79.11
99.98
2010/2011
Voting
Non Voting
95.00
70.00
63.00
50.00
79.90
57.90

1,129,680

61,200

1,725,840

104,220

6275
4,364,762
295,359,377

949
718,475
38,880,067

24,128
32,812,895
1,915,512,980

4,995
6,235,670
318,755,115

52

21,600,000

1,800,000

21,600,000

1,800,000

(1.00 per share)

(1.00 per share)

(1.00 per share)

(1.00 per share)

Coco Lanka PLC
SHAREHOLDERS’ INFORMATION
Coc Lanka PLC Top 20 Shareholders
Voting as at 31st March
No.
Name

2012
No. of Shares
%

2011
No. of Shares

%

14.
15.
16.
17.
18.
19.
20.

10,929,651
Renuka Agro Exports Ltd.
Sri Lanka Insurance Corp Ltd.-General Fund
868,200
651,514
Renuka Hotels Ltd.
Mr. Kangasu Chelvaduria Vignarajah
601,128
Capial Alliance Holdings Ltd.
439,995
311,371
Mrs. Sarathathevy Vignarajah
Dr. Dadallage Lalityh Piyarisi
283,600
Mr. Morarji Meghji Udeshi
262,600
237,000
J.B. Cocoshell (Pvt) Ltd.
Mr. Mohamed Nizam Mohamed Asir
165,200
Mr. Kavinda Madhawa Masinghe
157,400
147,428
Renuka Consuntalnts & Services Ltd.
Mr. Eirisinghe Appluhamilage Hiranya
Kosal Edirising
142,700
Cargo Boat Development Co. PLC
142,457
Mr. Don Sujith Jayathu Wickramaratne
133,500
Mr. Arunasalam Sithampalam
120,600
Mr. Jayasuriya Don Arunapriya Isura Kumara
100,500
Crescent Launderers & Dry Cleaners (Pvt) Ltd.
97,714
Mrs. Sakalawalli Achargi Suwineetha Wijendra
93,100
Mr. M.D.W.T. Munasinghe
88,400

50.60
4.02
3.02
2.78
2.04
1.44
1.31
1.22
1.10
0.76
0.73
0.68

10,929,651
868,200
651,514
601,128
472,395
311,371
–))))
262,600
255,900
136,800
135,800
147,425

50.60
4.02
3.02
2.19
2.19
1.44
–))
1.22
1.18
0.63
0.63
0.68

0.66
0.66
0.62
0.56
0.47
0.45
0.43
0.41

–))))
142,457
107,200
–))))
–))))
97,714
–))))
–))))

–))
0.66
0.50
–))
–))
0.45
–))
–))

15,974,058

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

73,96

15,120,158

69.41

Non Voting as at 31st March
No.
Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

2012
No. of Shares
%

2011
No. of Shares

%

372,770
Capial Alliance Holdings Ltd.
Mr. Kangasu Chelvaduria Vignarajah
159,281
Mr. Abdulhussein Yusuf Husseinally
115,000
Waldock Mackenzie Ltd./Mr. H.M.S. Abdullhussein 108,200
Mr. Mushtaq Mohamed Fuad
53,740
Mrs. Jasbinderjit Kaur Piara Singhe
52,300
50,000
Miss Harnam Neesha & Mrs. J.K.P. Singh (Jt)
Mr. Talib Tawfiq Talib Al Nakib
47,851
Essajee Carimjee & Co. (Pvt) Ltd.
40,500
Mrs. Ratten Gulamhussein Abdulhussein
38,500
Pan Asia Banking Corp. PLC/Mrs. U. Sithampalam 35,300
Mrs. Sarathathevy Vignarajah
30.910
24,500
Mr. Mohamed Nabhan Mohamed Ahsan
Greenstone (Pvt) Ltd.
20,028
Mr. Mohamed Ameen Mohamed Rizwan
20,000
20,000
Mr. Piyadasa Guruge
Cravings (Pvt) Ltd.
20,000
Waldock Mackenzie Ltd./Hi Line Towers (Pvt) Ltd. 18,528
18,000
Singalanka Standard Cheminals PLC
Mr. Rajiv Istvan Anthony Goonetilleke
17,400

20.71
8.85
6.39
6.01
2.99
2.91
2.78
2.66
2.25
2.14
1.96
1.72
1.36
1.11
1.11
1.11
1.11
1.03
1.00
0.97

414,270
158,181
–))))
–))))
53,740
39,700
25,000
–))))
–))))
–))))
35,300
30,910
24,000
20,028
20,000
20,000
20,000
18,528
–))))
–))))

23.02
8.79
–))
–))
2.99
2,21
1.39
–))
–))
–))
1.96
1.72
1.33
1.11
1.11
1.11
1.11
1.03
–))
–))

1,262,808

70.17

879,657

48.88

53

NOTICE OF MEETING
Notice is hereby given that the 22nd.Annual General Meeting of the Company will be held at the Sri Lanka
Foundation Institute No 100, Torrington Avenue, Colombo 7 on the 26th September 2012 at 9.00 a.m. for the following purposes.
1.

To receive and consider the report of the Directors and the Statement of the Audited Financial
Statement for the year ended 31st March 2012 with the report of the Auditors thereon.

2.

To re-elect Mr C.J.De.S.Amaratunge who is above 70 years of age as a director in terms of section 211 of the companies Act No.7 of 2007 and it is specifically declared that the age limit of 70 year refer to in section 210 of the Companies Act No.7 of 2007 shall not apply to the said C.J.De.S.Amaratunge

3.

To declare a dividend of Rs 1.00 per share

4.

To authorize the directors to determine the contribution to charity

5.

To re-appoint KPMG, Chartered Accountants as auditors & authorize the Directors to determine their remuneration. By Order of the Board
RENUKA ENTERPRISES (PVT) LTD
Sgd Company Secretaries
8th August 2012

NOTE:
a)

b)

A form of proxy is enclosed to this report

c)

54

A member entitled to attend and vote at the above meeting is entitled to appoint a proxy to attend and vote instead of the member, such proxy need not to be a member.

The completed form of proxy should be deposited at the registered office of the company, “Renuka
House” 69 Sri Jinaratana Road, Colombo 2 on or before 9.00 a.m. on 24th September being not less than 48 hours before the time appointed for the holding of the meeting.

FORM OF PROXY
I/We...........................................................................................................................................................................................
of ............................................................................................................................................................................................... being a member / members of Coco Lanka PLC, hereby appoint:
Dr S.R.Rajiyah
Mrs I.R.Rajiyah
Mr S.V.Rajiyah
Mr C.J.De.S.Amaratunge
Mr T.K.Bandaranayake
Mr L.M.Abeywickrama
Mr S.Vasantha Kumara

(or
(or
(or
(or
(or
(or
(or

failing failing failing failing failing failing failing

him) her) him) him) him) him) him)

......................................................................................................................... (NIC No............................................................) of .......................................................................................................................................................................................... as my/our proxy to represent me/us and to speak and to vote on my/our behalf at the Annual General Meeting of the Company to be held on 26th September 2012 and at any adjournment thereof and at every poll which may be taken in consequence thereof.
For
01

To receive & consider the report of the Directors and the
Statement of the Audited Financial Statements for the year ended
31st March 2012 with the report of the Auditors thereon.

02

To re-elect Mr C.J.De.S.Amaratunge as a Director

03

To declare a dividend of Rs 1.00 per share

04

To authorize the Directors to determine in the contribution for charity

05

Against

To re-appoint KPMG, Chartered Accountants as auditors & authorize the Directors to determine their remuneration

Dated this ................................................. day of .................................. 2012

.......................................................
Signature of Shareholder

(a)
(b)

A proxy need not be a member of the Company
Instructions regarding completion appear overleaf

INSTRUCTIONS AS TO COMPLETION OF THE FORM PROXY
1.

To be valid, the completed form of proxy should be deposited at the Registered Office of the Company at
No.69 Sri Jinaratana Road, Colombo 2, not less than 48 hours before the time of the meeting.

2.

In perfecting the form of proxy, please ensure that all the details are legible

3.

Please indicate with an ‘X’ in the space provided how your proxy to vote on each resolution. If no indication is given the proxy, in his discretion, will vote, as he thinks it.

4.

In the case of a Company/Corporation, the proxy must be under its Common Seal which should be affixed and attested in the manner prescribed by its Articles of Association.

5.

In the case of a proxy signed by the Attorney, the Power of Attorney must be deposited at the Registered
Office No.69 Sri Jinaratana Road, Colombo 2, for registration.

CORPORATE INFORMATION
Name of Company
Coco Lanka PLC
(A Renuka Holdings PLC Company)
Registration No.
PQ 216

Legal Form
Quoted Public Company With Limited
Liability
Subsidiaries
Renuka Agri Foods PLC
Coco Hotels & Properties (Pvt) Ltd
Activity
Holding and Managing an Investment
Portfolio
Board Of Directors - Company
Dr S.R.Rajiyah
(Chairman)
Mrs I.R.Rajiyah
Mr C.J.De.S.Amaratunge
Mr S.V.Rajiyah
Mr L.M.Abeywickrama
MR T.K.Bandaranayake
Mr S.Vasanthakumara
Company Secretary
Renuka Enterprises (Pvt) Ltd
No.69 Sri Jinaratana Road,
Colombo 2
Registrars
S.S.P.Corporate Services (Pvt) Ltd
546 Galle Road,
Colombo 3.

Registered Office
“Renuka House”
69 Sri Jinaratana Road,
Colombo 2
Telephone: 00941-11-2314750-5
Fax: 00941 11-2445549
Email: info@renukagroup.com
Postal Address
P.O.Box 1403, Colombo
Stock Exchange Listing
Colombo Stock Exchange
Investment Committee
Dr S.R.Rajiyah (Chairmen)
Mrs I.R.Rajiyah
Mr S.V.Rajiyah
Mr L.M.Abeywickrama
Mr S.Vasantha Kumara
Audit Committee
Mr T.K.Bandaranayake (Chairman)
Mr C.J.De.S.Amaratunge
Mr L.M.Abeywickrama
Remuneration Committee
Mr C.J.De.S.Amaratunge (Chairman)
Mr L.M.Abeywickrama
Mr S.Vasanthakumara
Auditors
KPMG, Chartered Accountants
Legal Consultant
Nithya Partners
Attorney’s at Law
Bankers
National Development Bank PLC
Commercial Bank of Ceylon PLC…...

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...Financial Statement Analysis For: Nvidia Corp. Year end January 25, 2015 SECTION I BACKGROUND Nvidia Corp. is publicly traded on the Nasdaq Global Select Market under the ticker symbol NVDA. They adopt U.S. GAAP for their financial reporting. Depreciation and amortization are calculated using the straight-line method, accounts receivable are reported at net, and inventory is assumed to be FIFO (first-in first-out). The consolidated financial statements being analyzed are for the fiscal year that ended January 25, 2015. The financial statements as well as the internal controls both received an unqualified audit opinion from PricewaterhouseCoopers LLP. Nvidia is a semicondutor company specialized into two business segments, namely, the GPU business and the Tegra Processor business. Its products are GeForce , Quadro, , Tegra processors, Integrated chip solutions, Project SHIELD, Tegra VCM, and Embedded computing platforms. The company sells its processors to original equipment manufacturers (OEMs) that build personal computers (PCs), workstations, servers, smartphones and tablets. Its targets four market segments, namely, gaming, enterprise, mobile and cloud. The company operates across worldwide in Europe, China, Taiwan, the US, Americas and other Asia-Pacific countries. Nvidia is headquartered in California and employ approximately 9,228 employees and about 70% of whom are engaged in research and development. Revenue per employee is around $507,000.......

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Company Analysis

...McDonald’s Corporation Analysis 1) Summary of the Company: McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants. There are over 31,000 McDonald’s locations worldwide primarily selling hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, and desserts. 2) Financial Ratios Analysis: 1. Net Profit Margin- The net profit margin of 18.34 percent for 2008 indicates that 18.34 cents of net income was generated for each dollar of sales. The significant increase of 7.83 percent, from 2007’s 10.51 percent, yielded an additional $1.84 billion in profit on the company’s $23.52 billion in revenue. 2. Gross Profit Percentage- McDonald’s gross profit percentage for 2008 was about 27.39 percent, which was a good increase from 2007’s gross profit percentage of 17.02 percent. The increase indicates McDonald’s made 10.37 cents more gross profit on each dollar of revenue, making the company’s cash flows more liquid. 3. Asset Turnover- The asset turnover ratio for 2008 was a relatively low 0.81, only a 0.3 increase from 2007. This indicates 0.81 of revenue was generated for every dollar's worth of assets in 2008, which is not so good. It also implies the company’s pricing strategy is of high profit margins. 4. Fixed Asset Turnover- The 1.14 fixed asset turnover ratio for 2008 is relatively low similar to 2007’s fixed asset turnover ratio of 1.13. This indicates McDonald’s generated about $1.14 in sales revenue for......

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