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AEL.N0000 Contents THE BEAUTY OF THE APPLICATION OF BOLDNESS CREATIVITY A COMMITMENT TO SUCCESS BUILDING RELATIONSHIPS ENGINEERING EXCELLENCE Annual Report 2013/14 Access Engineering PLC This is an integrated Annual Report capturing economic, social and environmental performance STOCK CODE AEL.N0000 Contents FINANCIAL PREAMBLE REPORTS About Us 03 Annual Report of the Board of Directors Portfolio at a Glance 04 on the Affairs of the Company 136 Highlights of the Year 06 Statement of Directors’ Responsibility 142 About This Report 08 Independent Auditors’ Report 143 Statement of Comprehensive Income 144 Statement of Financial Position 145 MESSAGE Statement of Changes in Equity 146 Cash Flow Statement 147 A Message from the Chairman 10 Notes to the Financial Statements 148 MANAGEMENT DISCUSSION & ANNEXES ANALYSIS Five Year Summary 188 Joint Statement of the Managing Director and the Chief Operating Officer 13 Operating Structure 189 Review of Business Operations 18 Awards and Accolades 190 Value Creation and Stakeholder Milestones 191 Capital Formation 62 GRI Content Index 192 A Stakeholder Approach to Value Creation 63 Notice of Meeting 196 Internal Capital Formation 65 Form of Proxy Enclosed External Capital Formation 69 Corporate Information Inner Back Cover STEWARDSHIP Board of Directors 94 Corporate Management Team 95 Corporate Governance 99 Report of the Audit Committee 123 Enterprise Risk Management 126 SCAN to view the HTML web version of this Annual Report http://accessengineering2013-14.annualreports.lk/ Specs of Strategy, planning and specified goals are common to any enterprise. At Access Engineering we live and breathe plans, blueprints, specifications and all manner of systems and processes that ‘come with the territory’. Precision and accuracy sit well with the values of our Company - all of them as a composite describes well the heart and soul of Access Engineering. We are able to complete and deliver high-tech construction projects to specification, on time and on budget, because we aren’t afraid to incorporate new thinking and the latest technologies into our planning and operations. People who say ‘engineers aren’t creative’ haven’t seen us at work. THE APPLICATION OF CREATIVITY ‘Whatever you can do or dream you can, begin it,’ advised a great poet. ‘Boldness has beauty, power and magic in it’. Knowing our resources and skills are world-class gives us the confidence to embrace every challenge and venture into uncharted territory with a genuinely ‘can do’ attitude. THE BEAUTY OF BOLDNESS A COMMITMENT TO SUCCESS The pursuit of excellence, sustainability and value have helped Access Engineering achieve true success, not just in terms of the many projects we have completed, but also in terms of the reputation we have built as one of Sri Lanka’s largest corporates, respected at home and abroad. ENGINEERING EXCELLENCE It’s no use building the things we do unless we build them to last. And when you consider the pounding a road must take, the stresses a bridge must bear, the vital importance BUILDING of strength and safety in the design and RELATIONSHIPS construction of public buildings, you realize this We aren’t just laying bricks. With every civil isn’t easy. Especially with budget and deadline engineering project we take on, we lay the considerations to take into account every step foundations for closer, better interaction between of the way. Being good engineers just isn’t people. The buildings, roads and bridges we construct enough. We need to be excellent - not just now facilitate meetings and create positive exchanges and then, but all the time. among them. In our own relationships, too, we’re committed to positive, beneficial interactions across our entire stakeholder community. Access Engineering PLC Access Engineering PLC (AEL) began operations in 2001. In a relatively short lifespan of 13 years, we have built our enterprise into one of Sri Lanka’s foremost entities in the Civil Engineering and Construction industry. The Company has and continues to be involved in building some of Sri Lanka’s most vital infrastructure around the country, thus uplifting communities and contributing to the era of rapid economic development spearheaded by the Government. During the first decade of operations the Company grew in stature, where we brought a bold and enterprising approach combined with world class skills and expertise to diverse sectors of Civil Engineering and Construction, thus gaining a distinct advantage in the industry in Sri Lanka. Access Engineering is accredited as a ‘major’ and ‘specialized’ contractor by the National Contractors’ Association of Sri Lanka. It is graded C1 for six engineering sectors, GP-B1 for piling and EM-1 for telecommunications by the Institute for Construction Training and Development (ICTAD), which is the highest aggregate grading bestowed on any construction company in Sri Lanka. In 2011, the Company floated the second largest private placement in Sri Lanka to raise Rs. 4.5 Bn and subsequently proceeded with its initial public offering in the Colombo Stock Exchange in March 2012 enhancing Company equity by Rs. 5 Bn. Today, Access Engineering enjoys the highest market capitalization in the Construction and Engineering sector. Our success story has been recognized with many awards and accolades, with titles such as ‘The most tech savvy’ and ‘The Best Knowledge Integrator’ among others. Most significantly, in 2013, Access Engineering won the ‘Overall Gold Award’ at the National Business Excellence Awards organized by the National Chamber of Commerce and was recognized as one of the ‘Top 10 Corporate Citizens’ by the Ceylon Chamber of Commerce. In February 2012, Access Engineering acquired Sathosa Motors PLC, which holds the franchise for Isuzu commercial vehicles. Access Realties (Private) Limited, which owns Access Tower Office and Access Realties 2 (Private) Limited, the developer of the proposed Access Tower II for which construction has already commenced, are our fully-owned subsidiaries. In September 2013, the Company formed a joint venture, ZPMC Lanka Company (Private) Limited with Shanghai Zhenhua Heavy Industries Company Limited Company (ZPMC) of China, the world’s largest container handling equipment manufacturer. Access Engineering continues to forge ahead as a company operating an integrated and sustainable business, bringing to bear diverse skills, strengths and an innovative mindset channelled towards achieving our own goals of excellence, whilst creating and delivering value to our stakeholders. Vision Mission To be the foremost Sri Lankan business To meet the challenges in the enterprise in value engineering development of multi sector civil engineering projects, providing innovative solutions whilst developing long term progressive relationships with all our stakeholders ENGINEERING PROJECTS Roads and Highways Bridges and Flyovers Water and Wastewater Buildings At the forefront of many of Completed several landmark bridge/ Providing safe drinking water, Providing engineering services in the road rehabilitation and flyover projects better sanitation and ensuring high-rise building projects improvement projects minimal pollution The scope of work includes All Engineering services, including The work involves utility shifting, Engineering design, construction of The work involves civil construction, structural designs, piling, all civil road widening, improvements to the substructure, approaches, service mechanical and electrical works of works, design and installation of existing drainage systems, town roads, erection and launching of the water treatment plants. mechanical, electrical and plumbing improvements, rehabilitation and super structure. works, landscaping etc. are being improvement of road pavements, page 36 provided using inhouse expertise and road safety and environmental page 32 capabilities. improvements. page 42 page 21 Telecommunication Harbour and Marine Works Airport and Aviation Infrastructure A catalyst of growth in the Completed the renovation and One of the key contractors at the telecommunication sector through rehabilitation of the Unity Mattala International Airport Project their long term partnership Container Terminal of SLPA at the with the country’s leading mobile Port of Colombo This project included the construction service providers of cargo and fire rescue building at The work included construction the Airport as well as infrastructure The scope work includes construction of Rubber Mounted Embankment, work such as Apron fuel hydrant of telecommunication towers including rectification of the settlements with system, water supply mains, water transmission facilities, installation anchor rods, Construction of an tower, roads etc. of cables, ducts, optical fiber underwater Mask Concrete Curtain telecommunication networks etc. wall and providing essential amenities. page 44 page 48 And now...this is an opportune moment to ‘unfold’ the product and service portfolio of our diversified and successful construction enterprise... ENGINEERING SERVICES Engineering Design Piling Geotechnical Laboratory HDD and Cable Jetting Services Provides a competitive edge in Engages in construction of cast, Provides investigations services for Involved in telecommunication turnkey and design-and-build in-situ bored piles for buildings, internal and external projects infrastructure work underground contracts bridges, etc. The services include testing of raw Horizontal directional drilling (HDD) The team is skilled in the design Access Engineering is one of the and process
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