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Contents 02-13 14-70 71-119 Preamble Business Model Value Creation

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Contents 02-13 14-70 71-119 Preamble Business Model Value Creation CONTENTS 02-13 14-70 71-119 PREAMBLE BUSINESS MODEL VALUE CREATION 02… This is Access Engineering 14… Operating Environment 71… Financial Capital 03… About this Report 17… Strategic Direction 82… Manufactured Capital 04… Milestones 62… Stakeholder Engagement 84… Intellectual Capital 05… Our Group Structure 67… Materiality 87… Human Capital 06… Financial Highlights 92… Social and Relationship Capital 07… Non-Financial Highlights 105… Natural Capital 08… A Message from the Chairman 112… Capital Trade-offs Joint Statement from the 10… Managing Director and the 113… GRI Content Index Chief Operating Officer Independent Assurance Report to 118… Access Engineering PLC 120-181 183-286 287-297 STEWARDSHIP FINANCIAL REPORTS ANNEXES Annual Report of the Board of 120… Board of Directors 184… 287… Operating Structure Directors on the Affairs of the Company 124… Corporate Management Team 191… Statement of Directors’ Responsibility 288… Eight Year Summary Directors’ Statement on Internal 128… Corporate Governance 192… 290… Our Story Control 172… Enterprise Risk Management 193… Independent Auditors’ Report 292… Awards and Accolades Statement of Profit or Loss and 200… 294… Abbreviations Other Comprehensive Income 201… Statement of Financial Position 296… Directors of Subsidiary Companies 202… Statement of Changes in Equity 297… Notice of Meeting 203… Statement of Cash Flows Enclosed – Form of Proxy Inner Back Cover – Corporate Information 205… Notes to the Financial Statements INTEGRATED ANNUAL REPORT 2017/18 ACCESS ENGINEERING WAS CREATED TO BE AN ENTITY OFFERING ENGINEERING ACUMEN AND SKILLS OF THE HIGHEST ORDER, COMBINED WITH A HIGH CAPACITY TO INNOVATE AND A DESIRE TO OFFER THE PRODUCTS AND SERVICES THAT ENGENDER LONG-TERM PARTNERSHIPS WITH STAKEHOLDERS. To our way of thinking, all this initiative must generate and deliver optimum value to the stakeholder, which is why we look on our enterprise as value engineering. Looked at another way, the success of our efforts enables us to be valued for our engineering prowess. Whichever way one looks at it...Value is key ACCESS ENGINEERING PLC ANNUAL REPORT 2017/18 01 GRI 102-2, 4, 6 THIS IS ACCESS ENGINEERING VISION 02-13 To be the foremost Sri Lankan business enterprise in value engineering. PREAMBLE MISSION To meet the challenges in the development of multi-sector civil engineering projects, providing innovative solutions whilst developing long-term progressive relationships with all our stakeholders. 14-70 BUSINESS MODEL 71-119 Access Engineering PLC (AEL), established in 2001, is the premier AEL has been bestowed with recognition as a “specialist VALUE CREATION VALUE civil engineering firm in the Sri Lankan construction sector. Since contractor” by the National Construction Association of Sri Lanka our inception, we have extensively contributed to the construction and as a “Major Contractor” by Construction Industry Development landscape in Sri Lanka through numerous completed construction Authority (CIDA), with the highest CIDA grading across most projects. We collaborate across disciplines and industries like number of disciplines of civil engineering. It is compliant to ISO energy and resource, environmental and water to bring highly 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 accreditations diversified projects to life. Our project portfolio over the years for its quality, environmental, and health and safety management include bridges and flyovers, roads and highways, harbours, systems and is a signatory to the UN Global Compact. AEL is also 120-181 water treatment plants and water supply projects, land drainage a TRACE member in good standing. STEWARDSHIP and irrigation schemes, telecommunication infrastructure projects, and more. AEL has the following wholly-owned subsidiaries: Access Realties (Private) Limited, Access Realties 2 (Private) Limited, ARL Elevate We have set ourselves apart from the competition by way of (Private) Limited, and Horizon Holdings Ventures (Private) Limited. innovative, one-of-a-kind solutions combined with our end-to- Other subsidiaries are Sathosa Motors PLC, which is 84% owned end project and engineering know-how. Our work force consists by AEL, Access Projects (Private) Limited which is 80% owned, of staff and labour amounting to over 2,500. Managerial and Horizon Knowledge City Limited (99.99% owned) and Harbour professional staff account for over 150 and technical staff for about Village (Private) Limited (60.83% owned). AEL also has 50% joint 183-286 400. We also possess an island-wide network of quarries, crusher ventures in Horizon Holdings (Private) Limited and Blue Star plants, asphalt plants, and concrete batching plants along with Realties (Private) Limited. Our associate company, ZPMC Lanka FINANCIAL REPORTS FINANCIAL the latest machinery. Company (Private) Limited, in which we have a 30% stake is a joint venture with Shanghai, Zhenhua Heavy Industries Company Our local strength, knowledge, and relationships, coupled with our Limited (ZPMC) of China, the world’s largest container handling world-class expertise, have allowed us to provide advanced, yet equipment manufacturer. personalised engineering solutions to our stakeholders. The “Access Engineering Promise” is to maintain the highest 287-297 ANNEXES professional standards from planning, design, to execution. 02 ACCESS ENGINEERING PLC ANNUAL REPORT 2017/18 GRI 102-11, 12, 46, 48, 49, 50, 51, 52, 53, 54, 56 ABOUT THIS REPORT Welcome to the fifth consecutive Integrated Annual Report of The Access Engineering PLC’s Integrated Annual Report 2017/18 Access Engineering PLC. The Report provides an overview of the covers the period from 1 April 2017 to 31 March 2018. financial and non-financial information, key functions, strategic PREAMBLE investments, and the main business segments of the Company. This year’s Report is consistent with the Company’s usual 02-13 The Report also includes information regarding the value creation reporting cycle with regards to financial and sustainability process of AEL, summarised in the Business Model Section, reporting. The previous Annual Report covered the period from and outlines the Company’s short and long-term strategies, 1 April 2016 to 31 March 2017. governance, performance, and the Company’s efforts towards sustainability in a comprehensive, coherent manner. COMPLIANCE This Report presents financial aspects as well as the wider social REPORTING FRAMEWORK and environmental impact of the Company’s activities. There have BUSINESS MODEL This Report has drawn on the concepts, principles, and guidelines been no restatements of any information given in any previous 14-70 described in the following sources: reports, in this Report. There have also been no changes in the scope and boundary compared with the previous Report. This y Companies Act No. 07 of 2007; Report is prepared in accordance with the core criteria of GRI y Global Reporting Initiative (GRI) Sustainability Reporting Sustainability Reporting Guidelines GRI Standards. Guidelines GRI Standards (www.globalreporting.org); y The International Integrated Reporting Framework (IIRC) EXTERNAL ASSURANCE (www.theiirc.org); The Financial Statements were audited by Messrs KPMG CREATION VALUE y “A Preparer’s Guide to Integrated Corporate Reporting” issued Chartered Accountants while assurance on the sustainability by The Institute of Chartered Accountants of Sri Lanka; reporting was also provided by Messrs KPMG. 71-119 y Code of Best Practice on Corporate Governance issued by The Institute of Chartered Accountants of Sri Lanka and the PRECAUTIONARY PRINCIPLE Securities and Exchange Commission of Sri Lanka; The Company applies the precautionary principle in relation to y The Ten Principles of UNGC; social and environmental sustainability. The Company is mindful y Sri Lanka Accounting Standards (SLFRS and LKAS) and of the impacts caused to society and environment by its operations International Financial Reporting Standards (IFRS); and have taken necessary measures to mitigate any negative y TM impacts and risks in operational planning and activities. STEWARDSHIP Smart Integrated Reporting Methodology 120-181 (www.SmartAnnualReport.com). QUERIES CONCEPTS Further queries regarding the Report or its contents should be Value creation at AEL is a two-way process of value creation and addressed to the Chief Operating Officer, Access Engineering PLC value delivery. AEL’s capitals comprises financial, Intellectual, at [email protected] Manufactured, Human, Social and relationship, and Natural capitals. Address : 12th Floor, Access Engineering PLC, Access Tower, REPORTS FINANCIAL REPORT BOUNDARY AND REPORTING PERIOD Union Place, Colombo 2. 183-286 The overall boundary of this Report includes both Access Tel : +94 117 606 606 Engineering PLC (referred to as AEL or Company) and its subsidiaries as listed out in page 5 (collectively referred to as The Report is available in both print and HTML versions. the "Group"). Financial aspects cover the entire Group while The latter may be downloaded from the Company’s website non-financial aspects cover only Access Engineering PLC. www.accessengsl.com ANNEXES 287-297 ACCESS ENGINEERING PLC ANNUAL REPORT 2017/18 03 MILESTONES Completion of the modification and conversion works of existing Rubber tired Gantry Cranes 02-13 PREAMBLE into Electrified Rubber Tired Gantry Cranes (ERTG) at the Colombo International Container Terminals (CICT), Sri Lanka by ZPMC Lanka Company (Private) Limited. Commencement of 14-70 commercial operations of Access Tower II. BUSINESS MODEL Completion
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