Be Yourself; Everybody Else Is Already Taken

BE YOURSELF; EVERYBODY ELSE IS ALREADY TAKEN.

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02 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 03 CHAIRMAN’S LETTER

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04 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 05 CEO’S LETTER

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06 ODEL ANNUAL REPORT FINANCIAL HIGHLIGHTS

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08 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 09 BOARD OF DIRECTORS

RUCHI GUNEWARDENE OTARA GUNEWARDENE SANJAY KULATUNGA CHAIRMAN EXECUTIVE DIRECTOR/CEO NON-EXECUTIVE INDEPENDENT DIRECTOR

Mr. Gunewardene is the Managing Otara is the founder of Odel and ^ĂŶũĂǇ<ƵůĂƚƵŶŐĂŚĂƐĞǆƉĞƌŝĞŶĐĞĂƐĂ Director of STING Consultants and ŚĂƐƐĞƌǀĞĚĂƐKƐŝŶĐĞŝŶĐĞƉƟŽŶ͘ ĨŽƵŶĚĞƌĂŶĚĂŶǆĞĐƵƟǀĞŝƌĞĐƚŽƌŝŶĂ Brand Finance Lanka, Sri Lanka’s only graduate in Biology from The Bowling diverse array of industries ranging from ĨƵůůǇͲŝŶƚĞŐƌĂƚĞĚƐƚƌĂƚĞŐŝĐŵĂƌŬĞƟŶŐ Green State University, Ohio, Otara’s Finance, Export manufacturing and ĂŶĚďƌĂŶĚĐŽŶƐƵůƟŶŐĮƌŵƐ͘,ĞĐŽƵŶƚƐ entry into the fashion retail business /ŵƉŽƌƚƐƵďƐƟƚƵƟŽŶ͘,ĞŚŽůĚƐĂƐĞƌŝĞƐŽĨ ŽǀĞƌƚǁŽĚĞĐĂĚĞƐŽĨŵƵůƟŶĂƟŽŶĂů followed a chance request by an apparel ŶŽŶͲǆĞĐƵƟǀĞŝƌĞĐƚŽƌƐŚŝƉƐŝŶůŝƐƚĞĚĂƐ experience as the former Country manufacturer to help him dispose of an well as unlisted companies. Manager/CEO of Coca-Cola Sri Lanka, assortment of export surplus garments, ZĞŐŝŽŶĂůDĂƌŬĞƟŶŐDĂŶĂŐĞƌĨŽƌ which she sold from the boot of her ,ĞĂůƐŽƐĞƌǀĞƐŽŶƚŚĞ&ŝŶĂŶĐŝĂů^ĞĐƚŽƌ ƚŚĞŽĐĂͲŽůĂŽŵƉĂŶǇĂŶĚ,ĞĂĚ car. From being a sole proprietor of one ^ƚĂďŝůŝƚǇŽŶƐƵůƚĂƟǀĞŽŵŵŝƩĞĞŽĨƚŚĞ ŽĨDĂƌŬĞƟŶŐŽĨ'ůĂǆŽ^ŵŝƚŚ<ůŝŶĞ store in 1990, she pioneered a fashion Central Bank of Sri Lanka. Consumer, Sri Lanka. Prior to this, he retailing phenomenon and has piloted ǁĂƐĞŵƉůŽǇĞĚďǇŵƵůƟŶĂƟŽŶĂůƐZĞĐŬŝƩ Odel through two decades of explosive ^ĂŶũĂǇ<ƵůĂƚƵŶŐĂŚĂƐĂDĨƌŽŵƚŚĞ Benckiser and JWT in their Sri Lankan growth and expansion. University of Chicago ‘Booth School of ŽƉĞƌĂƟŽŶƐ͘Dƌ͘'ƵŶĞǁĂƌĚĞŶĞŚŽůĚƐĂ ƵƐŝŶĞƐƐ͛͘,ĞŝƐĂŶƐƐŽĐŝĂƚĞŵĞŵďĞƌŽĨ ĂĐŚĞůŽƌŽĨ^ĐŝĞŶĐĞ͕,ŽŶŽƵƌƐĞŐƌĞĞŝŶ KƚĂƌĂŚĂƐƚŚĞĚŝƐƟŶĐƟŽŶŽĨďĞŝŶŐƚŚĞ ƚŚĞŚĂƌƚĞƌĞĚ/ŶƐƟƚƵƚĞŽĨDĂŶĂŐĞŵĞŶƚ Applied Biology from the University ĮƌƐƚĨĞŵĂůĞĞŶƚƌĞƉƌĞŶĞƵƌƚŽƚĂŬĞĂ Accountants (ACMA) as well as a ŽĨĂƚŚ͕h<͘ company public in Sri Lanka, when Odel Chartered Financial Analyst (CFA). launched an IPO in July 2010. Following the entry of Parkson Retail Asia 2012, Otara retains a 29.7 per cent stake of KĚĞůW>͘,ĞƌĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉǁĂƐ globally recognised in 2010 when she was named the best female entrepreneur at the seventh US Stevie Awards for Women in Business.

10 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 11 BOARD OF DIRECTORS

DATUK LEE KOK LEONG NON-EXECUTIVE NON-INDEPENDENT DIRECTOR

ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐŚĂƐďĞĞŶƐĞƌǀŝŶŐ as Personal Assistant to Tan Sri William Cheng, Group Chairman of the Lion Group of Companies since 2010 and assists the Chairman in the retail, branding and property divisions in the Group.

EARDLEY PERERA PAUL TOPPING Datuk Lee has accumulated vast HAMID GHAZALI HUSSAIN WONG SIEW CHUAN TIANG CHEE SUNG NON-EXECUTIVE INDEPENDENT NON-EXECUTIVE INDEPENDENT ĞǆƉĞƌŝĞŶĐĞĂŶĚŝŶƟŵĂƚĞŬŶŽǁůĞĚŐĞŽĨ NON-EXECUTIVE INDEPENDENT NON-EXECUTIVE NON-INDEPENDENT NON-EXECUTIVE NON-INDEPENDENT DIRECTOR DIRECTOR the retail and branding industry with DIRECTOR DIRECTOR DIRECTOR ŽǀĞƌϭϱǇĞĂƌƐŝŶƚŚŝƐďƵƐŝŶĞƐƐ͘,ĞŚĂƐ ALTERNATE DIRECTOR TO worked in Padini, the largest branded PAUL TOPPING Eardley Perera is a Chartered Marketer Paul Topping counts over three clothing and accessories company in ĂŶĚ'ƌĂĚƵĂƚĞŽĨƚŚĞŚĂƌƚĞƌĞĚ/ŶƐƟƚƵƚĞ ĚĞĐĂĚĞƐŽĨŝŶƚĞƌŶĂƟŽŶĂůĞǆƉĞƌŝĞŶĐĞ Malaysia, which is currently achieving a ŽĨDĂƌŬĞƟŶŐ͕h<ǁŝƚŚĂŵĞŵďĞƌƐŚŝƉ in both fashion and travel retailing in turnover of approximately over RM700 ,ĂŵŝĚ'ŚĂǌĂůŝ,ƵƐƐĂŝŶŝƐĂŶƩŽƌŶĞǇͲĂƚͲ Wong Siew Chuan joined Parkson Tiang Chee Sung currently holds the ƐƉĂŶŶŝŶŐŽǀĞƌĨŽƌƚǇǇĞĂƌƐ͘,ĞŚĂƐŚĂĚ the European, American and Asian million per annum. Law, former State Counsel and former in 1995 and expanded her role to ƉŽƐŝƟŽŶŽĨƐƐŝƐƚĂŶƚ'ĞŶĞƌĂůDĂŶĂŐĞƌ extensive management training in ĐŽŶƟŶĞŶƚƐ͘,ĞƐĞƌǀĞĚĂƐůƉŚĂ͛Ɛ >ĞŐĂůŽŶƐƵůƚĂŶƚƚŽhE,Z,ŽŶŐ<ŽŶŐ͘ Assistant General Manager in 2013. ;KƉĞƌĂƟŽŶƐͿŝŶWĂƌŬƐŽŶƐŝŶĐĞϮϬϬϵ͘Dƌ ^ǁĞĚĞŶ͕EĞƚŚĞƌůĂŶĚƐ͕ƚŚĞh<͕/ŶĚŝĂ͕ Retail Managing Director and then dŚŝƐǁĂƐĨŽůůŽǁĞĚďǇŚŝƐƐƟŶƚŝŶŬƟĨ ,ĞǁĂƐĂůƐŽĨŽƌŵĞƌĞƉƵƚǇŚĂŝƌŵĂŶŽĨ ,ĞƌĐƵƌƌĞŶƚƉŽƌƞŽůŝŽŝŶWĂƌŬƐŽŶ Tiang graduated from the University ^ŽƵƚŚ<ŽƌĞĂ͕ƚŚĞWŚŝůŝƉƉŝŶĞƐ headed their Asian business. Alpha Lifestyle store (formerly Yoahan) as Wakf Board. Malaysia includes Ladies Apparel and of Windsor, Ontario, Canada with a and Singapore. was a member of the Italian Autogrill store manager before the company was Ladies Accessories with a turnover ĂĐŚĞůŽƌŽĨŽŵŵĞƌĐĞŝŶϭϵϴϯ͘,Ğ Group, the world’s leading provider ĂĐƋƵŝƌĞĚďǇWĂƌŬƐŽŶŽƌƉŽƌĂƟŽŶ͘ƵƌŝŶŐ ,ĞŝƐƉƌĞƐĞŶƚůǇĂŵĞŵďĞƌŽĨƚŚĞ of approximately RM420 Million ũŽŝŶĞĚŵƉŽƌŝƵŵ,ŽůĚŝŶŐƐŝŶϭϵϴϯĂƐĂ ,ŝƐŵĂŶĂŐĞŵĞŶƚĞǆƉĞƌŝĞŶĐĞ͕ƐƉĂŶŶŝŶŐ of food & beverage and retail services ŚŝƐƐĞƌǀŝĐĞŝŶŬƟĨĂŶĚWĂƌŬƐŽŶ͕ŚĞǁĂƐ Advisory Council on the Intellectual (approximately USD130 Million). Management Trainee and was promoted over four decades, include Sales and for travellers. Prior to this, he held the assigned to supervise various Parkson Property Board. to Assistant Store Manager in 1986. DĂƌŬĞƟŶŐ͕ŽŵŵĞƌĐŝĂůĂŶĚ'ĞŶĞƌĂů ƉŽƐŝƟŽŶŽĨ'ƌŽƵƉDŽĨƚŚĞZĞƚĂŝů stores throughout Malaysia, handling She has 24 years of retail experience in DĂŶĂŐĞŵĞŶƚĨƵŶĐƟŽŶƐ͘,ĞŶŽǁƐĞƌǀĞƐ Division of Trusthouse Forte Airport ƚŚĞĚĂǇƚŽĚĂǇŽƉĞƌĂƟŽŶƐŝŶĐůƵĚŝŶŐƚŚĞ the fashion industry including all areas In 1987, he joined Parkson as an ĂƐĂEŽŶͲǆĞĐƵƟǀĞŝƌĞĐƚŽƌŽĨƐĞǀĞƌĂů ŝǀŝƐŝŽŶ͕h<͘,ĞĂůƐŽŚĞůĚƐĞŶŝŽƌƌŽůĞƐ ďĞƐƚƉĞƌĨŽƌŵŝŶŐWĂƌŬƐŽŶ^ƵƌŝĂ<> of Merchandising, Brand Management, Assistant Store Manager and was Public and Private Companies. Ăƚh<ĐůŽƚŚŝŶŐƌĞƚĂŝůĞƌƐ,^ĂŶĚ store with RM100 million annual Sourcing, Product Development and promoted to Store Manager in 1988. ǁ,ŽƌŶĞƐDĞŶƐǁĞĂƌ͘ sales turnovers. KƉĞƌĂƟŽŶƐ͘ ,ĞǁĂƐƉŽƐƚĞĚƚŽǀĂƌŝŽƵƐƐƚŽƌĞƐŝŶ ,ĞŝƐĂĐƟǀĞůǇĞŶŐĂŐĞĚŝŶŵĂŶĂŐĞŵĞŶƚ various states before being based at consultancy and extensive teaching ,ĞǁĂƐǀŽƚĞĚ:ŽŝŶƚdƌĂǀĞůZĞƚĂŝůĞƌŽĨ Apart from handling the retail /ŶĂĚĚŝƟŽŶ͕ƐŚĞŚĂƐϱǇĞĂƌƐŽĨŽǀĞƌƐĞĂƐ ƚŚĞ,ĞĂĚKĸĐĞĂƐKƉĞƌĂƟŽŶƐDĂŶĂŐĞƌ experience as a lecturer on the CIM ϮϬϬϱĂŶĚǁŽŶƚŚĞĂŶŶĞƐ&ƌŽŶƟĞƌ ŽƉĞƌĂƟŽŶƐ͕ŚĞǁĂƐĂůƐŽŝŶǀŽůǀĞĚŝŶ experience as a Regional overseeing 18 stores in 2002 to 39 ;h<ͿWŽƐƚŐƌĂĚƵĂƚĞŽƵƌƐĞŝŶDĂƌŬĞƟŶŐ ĂǁĂƌĚŽŶƚǁŽŽĐĐĂƐŝŽŶƐ͘,ĞŶŽǁƐŝƚƐ ƚŚĞŵĞƌĐŚĂŶĚŝƐŝŶŐĨƵŶĐƟŽŶƵƉŽŶŚŝƐ KƉĞƌĂƟŽŶƐDĂŶĂŐĞƌŝŶĂŶĞƐƚĂďůŝƐŚĞĚ stores presently. and on the MBA programme of the on the board of a number of companies ƉƌŽŵŽƟŽŶƚŽƚŚĞƌĂŶŬŽĨĚŝǀŝƐŝŽŶĂů fashion retail company, Women’s WŽƐƚŐƌĂĚƵĂƚĞ/ŶƐƟƚƵƚĞŽĨDĂŶĂŐĞŵĞŶƚ including travel retailer Flemingo Duty merchandising manager in Parkson Specialty Retailing Group, in both ,ĞŝƐĂůƐŽŝŶǀŽůǀĞĚŝŶŝĚĞŶƟĨǇŝŶŐŶĞǁ (PIM) of the University of Sri Free Int., and Bangalore Soma Winery. Malaysia. For the past 3 years, he San Francisco and Los Angeles. She ƉŽƚĞŶƟĂůƐŝƚĞƐĂŶĚƉŽƚĞŶƟĂůĐĂŶĚŝĚĂƚĞƐ Jayewardenepura, where he now serves ,ĞŚĂƐŚŝƐŽǁŶƌĞƚĂŝůĐŽŶƐƵůƚĂŶĐǇ͕ ŚĂƐďĞĞŶǀŝƐŝƟŶŐĂŶĚƐƚƵĚǇŝŶŐƚŚĞ graduated in 1989 from The University ĨŽƌŵĂŶĂŐĞƌŝĂůƉŽƐŝƟŽŶƐ͘ as a member of the Board of Study. Tractopping and develops/ writes on WĂƌŬƐŽŶƐƚŽƌĞƐŽƉĞƌĂƟŽŶƐŝŶƚŚĞǀĂƌŝŽƵƐ of Central Missouri, the United States wine as The Wineman countries Parkson is in, to assist the of America with a Bachelor of Arts in In March 2013, Mr Tiang arrived at Odel of Sri Lanka. Group Chairman in overseeing the retail DĂƐƐŽŵŵƵŶŝĐĂƟŽŶƐĂŶĚŵŝŶŽƌ Sri Lanka as Assistant General Manager ĂŶĚďƌĂŶĚŝŶŐďƵƐŝŶĞƐƐĂŶĚŝĚĞŶƟĨǇŝŶŐ ŝŶDĂƌŬĞƟŶŐ͘ ;KƉĞƌĂƟŽŶƐͿƚŽŚĞĂĚZĞƚĂŝůKƉĞƌĂƟŽŶƐ ďƵƐŝŶĞƐƐŽƉƉŽƌƚƵŶŝƟĞƐ͘ ƵŶƟůDĂǇϮϬϭϰďĞĨŽƌĞƌĞƚƵƌŶŝŶŐƚŽ ƚŚĞWĂƌŬƐŽŶ,ĞĂĚKĸĐĞƚŽƌĞƐƵŵĞŚŝƐ Datuk Lee graduated in 1998 from the ĐƵƌƌĞŶƚƉŽƐŝƟŽŶ͘ hŶŝǀĞƌƐŝƚǇŽĨ<ĞŶƚƵĐŬǇ͕h^ǁŝƚŚĂ ĂĐŚĞůŽƌŽĨ^ĐŝĞŶĐĞŝŶDĂƚŚĞŵĂƟĐƐĂŶĚ minor in Economics.

Mr. Datuk Cheng Yoong Choong resigned on 31st May 2014. Dƌ͘,ŝĂEŐĞĞzĞŽǁĐĞĂƐĞĚƚŽďĞŚŝƐĂůƚĞƌŶĂƚĞĨƌŽŵϯϭƐƚDĂǇϮϬϭϰ͘ Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶĂŶĚDƌ͘<ŽŚ,ƵĂƚ>ĂŝƌĞƐŝŐŶĞĚŽŶϰƚŚ:ƵůǇϮϬϭϰ͘ Dƌ͘ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐ͕Dƌ͘dŝĂŶŐŚĞĞ^ƵŶŐĂŶĚDƐ͘tŽŶŐ^ŝĞǁŚƵĂŶǁĞƌĞĂƉƉŽŝŶƚĞĚĂƐĚŝƌĞĐƚŽƌƐĨƌŽŵϰƚŚ:ƵůǇϮϬϭϰ͘ Dƌ͘,ĂŵŝĚ'ŚĂǌĂůŝ,ƵƐƐĂŝŶǁĂƐĂƉƉŽŝŶƚĞĚĂƐĂůƚĞƌŶĂƚĞĚŝƌĞĐƚŽƌƚŽDƌ͘WĂƵůdŽƉƉŝŶŐŽŶϲƚŚ:ƵůǇϮϬϭϰ

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40 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 41 FINANCIAL STATEMENTS

42 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 43 FINANCIAL REVIEW

Sri Lanka GDP grew by 7.3 % in 2013 compared to a growth of NET FINANCE COST COMPREHENSIVE INCOME EQUITY BASE AND RETURN ON EQUITY 6.3% in 2012. The per capita GDP reached USD 3,280 from USD During 2013 the interest rate scenario changed with lending dŚĞƉƌŽĮƚĂŌĞƌƚĂǆĨŽƌƚŚĞǇĞĂƌĂƚZƐϭϵϮŵŶŝƐĂŶŝŶĐƌĞĂƐĞŽĨ 2,922 year ago. The tourist arrivals reached 1.27 million in 2013 rates declining considerably. The 364 day Treasury Bill rate ϮϮйĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐĮŶĂŶĐŝĂůǇĞĂƌ͘dŚĞŝŶĐƌĞĂƐĞĚĐŽƐƚŽĨ 6,000 14% a growth of 26.7 % from the preceding year with earnings from dropped from 11.69% to 8.29% at the end of the calendar year ŽƉĞƌĂƟŽŶĂŶĚŐƌŽƐƐŵĂƌŐŝŶƌĞĚƵĐƟŽŶĚƵĞƚŽsdǁĂƐŽīƐĞƚ tourism recording 1.715 billion USD. The average spending per and Average Weighted Prime Rate too declined similarly from by the income earned from investments which resulted in the 12% tourist per day increased to USD 156.5 from USD 103 in 2012. ϭϰ͘ϰйƚŽϭϬ͘ϭϯй͘dŚĞƐĞƐŝŐŶŝĮĐĂŶƚƌĞĚƵĐƟŽŶƐǁĞƌĞŝŶƌĞƐƉŽŶƐĞ ďŽƩŽŵůŝŶĞŝŵƉƌŽǀĞŵĞŶƚ͘ 5,000 These developments in the macro environment had a salutary to policy decisions and due to excess liquidity available in the 10% ĞīĞĐƚŽŶƚŚĞƚŽƉůŝŶĞŽĨKĚĞů͘ ŵĂƌŬĞƚ͘dŚĞĮŶĂŶĐĞĐŽƐƚƐƌĞĐŽƌĚĞĚĂϮϱйĚƌŽƉĂƐĂƌĞƐƵůƚŽĨ EARNINGS PER SHARE 4,000 ƚŚĞĨĂǀŽƵƌĂďůĞĐŽŶĚŝƟŽŶƐĚĞƐƉŝƚĞƚŚĞŽǀĞƌĂůůďŽƌƌŽǁŝŶŐůĞǀĞůƐ The EPS reduced from cents 88 to cents 71 in 2013/14. The ďĞŝŶŐƐŝŐŶŝĮĐĂŶƚůǇŚŝŐŚĞƌƚŚĂŶƚŚĞƉƌĞǀŝŽƵƐǇĞĂƌ͘ 8% REVENUE increased number of shares in issue (post rights issue) was the 3,000 The revenue reached Rs 4.6bn which is a growth of 1.4% from ƌĞĂƐŽŶĨŽƌƚŚŝƐĚĞƐƉŝƚĞƚŚĞĂŌĞƌƚĂǆƉƌŽĮƚďĞŝŶŐŚŝŐŚĞƌƚŚĂŶŝŶ 6% previous year. A full year impact on the top line from VAT was 2012/13. ĨĞůƚĨŽƌƚŚĞĮƌƐƚƟŵĞƚŚŝƐǇĞĂƌ͘tŝƚŚŽŶůǇĂĨĞǁŝƚĞŵƐďĞŝŶŐ INTEREST COSTS AND BORROWINGS (Rs Mn) 2,000 exempt from it, VAT at 12% rate on the topline had a major 4% impact on the revenue growth which required re assessment 1400 180 MOVEMENT IN MARKET PRICE,NET ASSETS AND 1,000 2% of the prices and margins in a hitherto unfamiliar context. 160 EARNINGS PER SHARE (Rs) dŚĞĚĞĐĞůĞƌĂƟŽŶŽĨƚŚĞƌĞǀĞŶƵĞŐƌŽǁƚŚǁĂƐŽďƐĞƌǀĞĚ 1200 from last quarter of the previous year when VAT came into 140 45.00 1.60 - 0% ĞīĞĐƚĂŶĚǁŽƵůĚďĞŽǀĞƌĐŽŵĞǁŝƚŚƚŚĞƉĂƐƐĂŐĞƚŚĞŽĨƟŵĞ 1000 2011 2012 2013 2014 120 40.00 1.40 especially with the broadening of the tax base through the Equity 800 100 35.00 Return on equity last budget proposals which reduced the threshold to Rs 250 1.20 million per quarter. NON CURRENT ASSETS 600 80 30.00 1.00 Rs 433 mn was invested in acquiring property plant and 60 25.00 equipment during the year. This includes purchase cost of land REVENUE AND MARGIN 400 0.80 ƐŝƚƵĂƚĞĚĂĚũĂĐĞŶƚƚŽĐƵƌƌĞŶƚůǇŚĞůĚƉƌŽƉĞƌƟĞƐĂƚtĂƌĚWůĂĐĞ 40 20.00 ĂŶĚŝŶĂƩĂƌĂŵƵůůĂĂƐǁĞůůĂƐĂŵŽƵŶƚƐŝŶǀĞƐƚĞĚŝŶŶĞǁKĚĞů 200 0.60 5000 39% 20 15.00 outlets opened during the year.

4500 0 0 0.40 39% 10.00 CASH FLOW 4000 2011 2012 2013 2014 5.00 0.20 The investment in inventories increased by 13% to Rs 1.35 3500 38% Borrowings Finance cost billion. The average inventory holding period was at 5.8 months The rights issue of shares in December 2012 infused Rs 2.5 bn - - 3000 compared to 5.2 months at the previous 38% of fresh capital to Odel. These funds were raised to expand 2011 2012 2013 2014 year end. 2500 ƚŚĞƌĞƚĂŝůƐƉĂĐĞĂŶĚƚŽƐĞƩůĞƉĂƌƚŽĨƚŚĞďŽƌƌŽǁŝŶŐƐ͘ŌĞƌ Share Price Net Assets EPS 37% 2000 ƐĞƩůŝŶŐƐŚŽƌƚƚĞƌŵďŽƌƌŽǁŝŶŐƐĂƩƌĂĐƟŶŐŚŝŐŚĞƌŝŶƚĞƌĞƐƚƌĂƚĞƐ dŚĞŶĞƚĐĂƐŚĨƌŽŵŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐǁĂƐŝŶƐƵĸĐŝĞŶƚƚŽĨƵŶĚ ĂŵĂũŽƌƉŽƌƟŽŶŝƐƐƟůůŝŶǀĞƐƚĞĚŝŶƐŚŽƌƚƚĞƌŵŝŶǀĞƐƚŵĞŶƚƐƵŶƟů DIVIDENDS investment in property, plant & equipment. 1500 37% drawdown for expansion become necessary. A total of 24 cents dividend per share was paid for 2013/14 1000 which compares with the 35 cents per share paid for 2012/13 &ŝŶĂŶĐŝŶŐŽĨĐĂƐŚŇŽǁĚĞĮĐŝƚǁĂƐĨƌŽŵďŽƌƌŽǁŝŶŐƐĂůďĞŝƚĂƚ 36% The income earned from short term investments boosted the ĮŶĂŶĐŝĂůǇĞĂƌ͘dŚŝƐƚƌĂŶƐůĂƚĞĚƚŽĂƉĂǇŽƵƚŽĨϯϰйŽĨƚŚĞĂŌĞƌ 500 ůŽǁĞƌƌĂƚĞƐŽĨŝŶƚĞƌĞƐƚ͘ƵĞƚŽƚŚŝƐƚŚĞŐĞĂƌŝŶŐƌĂƟŽĂƚǇĞĂƌĞŶĚ ƌĞƐƵůƚƐŽĨƚŚĞĐŽŵƉĂŶǇƐŝŐŶŝĮĐĂŶƚůǇĚƵƌŝŶŐƚŚĞǇĞĂƌĂŶĚŚĞůƉĞĚ ƚĂǆƉƌŽĮƚŝŶϮϬϭϯͬϭϰ͘dŚĞƐŽůǀĞŶĐǇƉŽƐŝƟŽŶǁĂƐĞǆĂŵŝŶĞĚ increased to 16.6% from 11.6% year ago. 0 36% ƚŽĐƵƐŚŝŽŶƚŚĞĞīĞĐƚsdŚĂĚŽŶƚŚĞƌĞƐƵůƚ͘ ƉƌŝŽƌƚŽƐƵĐŚĚŝƐƚƌŝďƵƟŽŶďǇƚŚĞŝƌĞĐƚŽƌƐĂŶĚĐŽŶĮƌŵĞĚďǇƚŚĞ 2011 2012 2013 2014 Auditors as per the applicable statutory requirements. Revenue Rs mn Margin % The rates of interest have steadily declined into the new ĮŶĂŶĐŝĂůǇĞĂƌĂŶĚƚŚŝƐƚƌĞŶĚŝƐĞǆƉĞĐƚĞĚƚŽĐŽŶƟŶƵĞŝŶƚŚĞ TOTAL EQUITY AND RETURN GROSS MARGIN short term. Total Equity increased to Rs 5.2bn from Rs5.1 bn through the Gross margin was impacted over the last two years by the ƌĞƚĞŶƟŽŶŽĨĞĂƌŶŝŶŐƐ͘ ĞīĞĐƚŽĨsdďĞŝŶŐŝŵƉŽƐĞĚŽŶƌĞƚĂŝůƐĂůĞƐ͘dŚĞŽǀĞƌĂůů'ƌŽƐƐ MOVEMENT OF AWPLR AND INFLATION (%) WƌŽĮƚŵĂƌŐŝŶƌĞŵĂŝŶĞĚŇĂƚĂƚϯϴ͘ϯйŽǀĞƌƚŚĞƉĂƐƚƚǁŽǇĞĂƌƐ The return on equity improved marginally to 3.5% from 3.1% in as a result. the previous year. 16

OVERHEADS 14 ŝƐƚƌŝďƵƟŽŶĞǆƉĞŶƐĞƐǁĞƌĞĐŽŶƐŝƐƚĞŶƚǁŝƚŚƌĞǀĞŶƵĞŐƌŽǁƚŚĂƐ these consist mainly of the payments linked to the topline. 12 10 dŚĞŝŶŇĂƟŽŶƌĂƚĞŝŶĚŝĐĂƚĞĚďǇW/ĂŶŶƵĂůĂǀĞƌĂŐĞĐŚĂŶŐĞǁĂƐ 6.9%in 2013 down from 7.6% in 2012. The main components of 8 ŽǀĞƌŚĞĂĚĐŽƐƚƐĂƌĞƐƚĂīĐŽƐƚƐ͕ƌĞŶƚĂŶĚĞůĞĐƚƌŝĐŝƚǇ͘dŚĞŽƉĞŶŝŶŐ of 3 new outlets contributed to the increase in these costs. 6 KǀĞƌĂůůĂĚŵŝŶŝƐƚƌĂƟŽŶĐŽƐƚƐŝŶĐƌĞĂƐĞĚďǇϭϱйŝŶϮϬϭϯͬϭϰĂŶĚ 4 ŵĂŶǇŝŶŝƟĂƟǀĞƐŚĂǀĞďĞĞŶƚĂŬĞŶƚŽĐŽŶƚƌŽůƚŚĞĐŽƐƚƐŽŶĂŶ ongoing basis. 2

0 2011 2012 2013 2014

AWPLR /ŶŇĂƟŽŶ 44 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 45 RISK MANAGEMENT ANNUAL REPORT OF THE DIRECTORS ON THE STATE OF AFFAIRS

The Board of Directors has the overall responsibility to manage ĂŶĚƉĂƌƟĐŝƉĂƟŽŶ͘dŚĞŽƌŝĞŶƚĂƟŽŶƚŽǁĂƌĚƐĚĞĮŶĞĚƐǇƐƚĞŵƐĂŶĚ The Directors present their report to the members together with details of Property, plant and equipment are given in Note 9 to ƌŝƐŬƐĞīĞĐƟǀĞůǇƚŽĞŶƐƵƌĞďƵƐŝŶĞƐƐĐŽŶƟŶƵŝƚǇĂŶĚŐƌŽǁƚŚ͘KŶ procedures to be followed in most areas of work and the checks the audited Financial Statements of Odel PLC and Consolidated the Financial Statements. ďĞŚĂůĨŽĨƚŚĞŽĂƌĚƚŚĞƵĚŝƚŽŵŵŝƩĞĞƌĞǀŝĞǁƐƚŚĞĞīĞĐƟǀĞŶĞƐƐ and balances in place to ensure compliance are regularly reviewed Financial Statements of the group for the year ended 31st ŽĨƚŚĞƉƌŽĐĞƐƐĞƐŝŶƉůĂĐĞ͘dŚĞŝŶƚĞƌŶĂůĂƵĚŝƚĨƵŶĐƟŽŶĂƐƐŝƐƚƐŝŶ and improved where necessary. March 2014. STATUTORY PAYMENTS monitoring the adherence to the systems and procedures and dŚĞŝƌĞĐƚŽƌƐ͕ƚŽƚŚĞďĞƐƚŽĨƚŚĞŝƌŬŶŽǁůĞĚŐĞĂŶĚďĞůŝĞĨ͕ĐŽŶĮƌŵ the improvement of the internal controls of the business. The dŚĞĂďŝůŝƚǇƚŽƐŽƵƌĐĞƚŚĞƉƌŽĚƵĐƚƐĞĸĐŝĞŶƚůǇĂŶĚďĞĂďůĞƚŽĞŶƐƵƌĞ PRINCIPAL ACTIVITY ƚŚĂƚĂůůƉĂǇŵĞŶƚƐŝŶƌĞƐƉĞĐƚŽĨƐƚĂƚƵƚŽƌǇůŝĂďŝůŝƟĞƐƚŽŵƉůŽǇĞĞƐ ƐĞƌǀŝĐĞƐŽĨĂŶĞǆƚĞƌŶĂůĮƌŵŽĨĂĐĐŽƵŶƚĂŶƚƐŝƐĂůƐŽŽďƚĂŝŶĞĚǁŝƚŚ a range which appeals to the Odel customer is an important dŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƚǇŽĨƚŚĞŽŵƉĂŶǇĚƵƌŝŶŐƚŚĞǇĞĂƌǁĂƐĨĂƐŚŝŽŶ ĂŶĚƚŽƚŚĞ'ŽǀĞƌŶŵĞŶƚŚĂǀĞďĞĞŶŵĂĚĞǁŝƚŚŝŶƚŚĞƐƟƉƵůĂƚĞĚ ĂĚĞĮŶĞĚƐĐŽƉĞŽĨǁŽƌŬƚŽƌĞǀŝĞǁƚŚĞƐǇƐƚĞŵĂĚŚĞƌĞŶĐĞ͕ĂŶĚƚŽ aspect of managing product risks. Maintenance of highest quality ƌĞƚĂŝůŝŶŐŽīĞƌŝŶŐŝƚƐĐƵƐƚŽŵĞƌƐĂƚŽƚĂůƐŚŽƉƉŝŶŐĞǆƉĞƌŝĞŶĐĞ͘dŚĞƌĞ ƉĞƌŝŽĚĚƵƌŝŶŐƚŚĞĮŶĂŶĐŝĂůǇĞĂƌϮϬϭϯͬϭϰ͘ support the internal audit. standards is synonymous with Odel brand. Odel has a diverse and ŚĂǀĞďĞĞŶŶŽƐŝŐŶŝĮĐĂŶƚĐŚĂŶŐĞƐŝŶƚŚĞĂĐƟǀŝƟĞƐŽĨƚŚĞĐŽŵƉĂŶǇ ďƌŽĂĚďĂƐĞŽĨƐƵƉƉůŝĞƌƐĂŶĚĐŽŶƟŶƵŽƵƐůǇŵŽŶŝƚŽƌƐƚŚĞĐŚĂŶŐĞƐ during the year under review. Though there are many risks to which a business is exposed some in fashion to ensure the range carried mirrors the latest trends. CORPORATE DONATIONS ŽĨƚŚĞŬĞǇƌŝƐŬƐŝŵƉĂĐƟŶŐKĚĞůW>ĂƌĞĚŝƐĐƵƐƐĞĚďĞůŽǁ͘ The Company has donated Rs 1,085,486/- during the year and The assets are safeguarded physically where relevant and also GOING CONCERN the majority of these were scholarships to school students in ŚĂŶŐĞƐŝŶDĂĐƌŽĞĐŽŶŽŵŝĐĐŽŶĚŝƟŽŶƐŝŵƉĂĐƚKĚĞů͘dŚĞŝŶĐƌĞĂƐĞ ŝŶƐƵƌĞĚĂƐĂƉƉƌŽƉƌŝĂƚĞƚŽŵŝƟŐĂƚĞƌŝƐŬƐŽĨĚĂŵĂŐĞĂŶĚƵŶŝŶƚĞŶĚĞĚ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŝƐƐĂƟƐĮĞĚƚŚĂƚƚŚĞŽŵƉĂŶǇŚĂƐƚŚĞ Balapitya area. in per capita income and tourist arrivals are catalysts for growth of use. These measures too are reviewed by the internal audit and ĂĚĞƋƵĂƚĞƌĞƐŽƵƌĐĞƐƚŽĐŽŶƟŶƵĞŝƚƐŽƉĞƌĂƟŽŶƐŝŶƚŚĞĨŽƌĞƐĞĞĂďůĞ the target market segment of Odel. The changes in the economic a comprehensive assessment is made annually of the coverage future. Accordingly, the Financial Statements are prepared based COMPANY RECORDS ŽŶƚŚĞ'ŽŝŶŐŽŶĐĞƌŶĂƐƐƵŵƉƟŽŶ͘ ƉƌŽũĞĐƟŽŶƐĂŶĚƉĞƌĨŽƌŵĂŶĐĞĂƌĞĐůŽƐĞůǇŵŽŶŝƚŽƌĞĚƚŽƵŶĚĞƌƐƚĂŶĚ of risks through insurance. Also the ability of the underlying IT The Directors have disclosed the nature and extent of their ƚŚĞŝŵƉĂĐƚƚŽKĚĞů͘dŚĞƉƌŽĚƵĐƚŽīĞƌĂŶĚĐŽŵŵƵŶŝĐĂƟŽŶŽĨƚŚĞ systems to scale with expanding business requirements is closely relevant interest in shares issued by the Company and interest in ǀĂůƵĞĂƌĞƚĂŝůŽƌĞĚƚŽƌĞĐŽŐŶŝǌĞƚŚĞĐŚĂŶŐĞŝŶĐƵƐƚŽŵĞƌŶĞĞĚƐĂŶĚ ŵŽŶŝƚŽƌĞĚ͘dŚĞĐŽŶƟŶƵŝŶŐďƵƐŝŶĞƐƐŐƌŽǁƚŚƌĞƋƵŝƌĞƐƐƵƉƉŽƌƚŽĨ GROUP REVENUE ƚƌĂŶƐĂĐƟŽŶƐŽƌƉƌŽƉŽƐĞĚƚƌĂŶƐĂĐƟŽŶƐǁŝƚŚƚŚĞŽŵƉĂŶǇĚƵƌŝŶŐ ĂƐƉŝƌĂƟŽŶƐĂŶĚŝƐĐŽŶƐƚĂŶƚůǇƌĞǀŝĞǁĞĚ͘ ůĂƚĞƐƚ/ŶĨŽƌŵĂƟŽŶĂŶĚŽŵŵƵŶŝĐĂƟŽŶdĞĐŚŶŽůŽŐǇƚŽĞŶƐƵƌĞ The revenue of the Group during the year was Rs 4,595,053,622/- ƚŚĞǇĞĂƌ͕ƚŽƚŚĞŽĂƌĚŽĨƚŚĞŽŵƉĂŶǇĂŶĚƐƵĐŚŝŶĨŽƌŵĂƟŽŶŚĂƐ ĞĸĐŝĞŶĐǇĂŶĚĞīĞĐƟǀĞŶĞƐƐŽĨĚĞůŝǀĞƌǇ͘ (2013-Rs.4,533,676,999/-). An analysis of the revenue is given in been duly entered in the Interest Register of the Company which dŚĞĂďŝůŝƚǇƚŽĨƵŶĚƚŚĞďƵƐŝŶĞƐƐĂƚĐŽŵƉĞƟƟǀĞƌĂƚĞƐŝƐĐƌƵĐŝĂů͘dŚĞ Note No 3 to the Financial Statements. is a part and parcel of this Annual Report. All the Company Records changes in fundamentals which drive interest rates in the market that are required to maintain under the provisions of the Act have ĂƌĞĐůŽƐĞůǇŵŽŶŝƚŽƌĞĚ͘ůƐŽKĚĞůĂĐƟǀĞůǇĚĞǀĞůŽƉƐƌĞůĂƟŽŶƐŚŝƉ GROUP EMPLOYMENT also been properly maintained. ǁŝƚŚĂŵƵůƟƚƵĚĞŽĨůĞŶĚĞƌƐĂŶĚƉŽƚĞŶƟĂůƐŽƵƌĐĞƐƚŽďƌŽĂĚĞŶƚŚĞ The Group had employed 908 persons as at 31st March 2014. ĨƵŶĚŝŶŐŽƉƟŽŶƐ͘dŚĞůĞǀĞƌĂŐĞƚŽƌĂŝƐĞĚĞďƚŝƐƐƚƌĞŶŐƚŚĞŶĞĚďǇƚŚĞ DIRECTORATE infusion of capital in 2012/13 through the rights issue of shares. DIVIDENDS The Directors of the Company as at 31st March 2014. The quality of service provided by employees and their work ethics The Company paid Final Dividend of Rs.0.10 per share for the ĮŶĂŶĐŝĂůǇĞĂƌĞŶĚĞĚϯϭƐƚDĂƌĐŚϮϬϭϯƚŽƐŚĂƌĞŚŽůĚĞƌƐŽŶϭϵƚŚ Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞʹŚĂŝƌŵĂŶͬEŽŶ and integrity are also an important aspect of risk management. ǆĞĐƵƟǀĞŝƌĞĐƚŽƌ dŚĞƐƚĂīĂƌĞƌĞĐƌƵŝƚĞĚƚŚƌŽƵŐŚĂƐĐƌĞĞŶŝŶŐƉƌŽĐĞƐƐĂŶĚƉƌŽǀŝĚĞĚ June 2013 and an Interim Dividend of Rs.0.12 per share for the ĮŶĂŶĐŝĂůǇĞĂƌĞŶĚĞĚϯϭƐƚDĂƌĐŚϮϬϭϰƚŽƐŚĂƌĞŚŽůĚĞƌƐŽŶϮϴƚŚ ǁŝƚŚƌĞŐƵůĂƌƚƌĂŝŶŝŶŐĂŶĚĚĞǀĞůŽƉŵĞŶƚŽƉƉŽƌƚƵŶŝƟĞƐƚŽŚŽŶĞ DƐ͘KƚĂƌĂĞů'ƵŶĞǁĂƌĚĞŶĞʹǆĞĐƵƟǀĞŝƌĞĐƚŽƌͬK their skills. The environment is created to encourage commitment November 2013.

ĮŶĂůĚŝǀŝĚĞŶĚŽĨZƐ͘Ϭ͘ϭϮƉĞƌƐŚĂƌĞĨŽƌƚŚĞĮŶĂŶĐŝĂůǇĞĂƌĞŶĚĞĚ Dƌ͘WĂƵůdŽƉƉŝŶŐʹEŽŶǆĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ 31st March 2014 has been declared on 29th May 2014 to be paid ŽŶƚŚĞƐƉĞĐŝĮĞĚĚĂƚĞ͘ Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂʹEŽŶǆĞĐƵƟǀĞ Independent Director STATEMENT OF SOLVENCY Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞǇ/ŐŶĂƟƵƐWĞƌĞƌĂʹEŽŶ Based on the audited Financial Statements for the year ended ǆĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ 31st March 2014 the Board is of the opinion that the company is ŝŶĂƉŽƐŝƟŽŶƚŽƉĂǇĚĞďƚƐŝŶƚŚĞŶŽƌŵĂůĐŽƵƌƐĞŽĨďƵƐŝŶĞƐƐĂŶĚ the value of company’s net assets is in excess of its stated capital. Dƌ͘ĂƚƵŬŚĞŶŐzŽŽŶŐŚŽŽŶŐʹEŽŶǆĞĐƵƟǀĞEŽŶ Independent Director

RESERVES Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶʹEŽŶǆĞĐƵƟǀĞEŽŶ Total Group Reserves as at 31st March 2014, amounted to Rs Independent Director 2,423,557,676/- (2013 – Rs.2,298,193,518/-). The movements of the Reserves during the year are shown in the Statement of Dƌ͘<ŽŚ,ƵĂƚ>ĂŝʹEŽŶǆĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ Changes in Equity on page no 58 Dƌ͘,ŝĂEŐĞĞzĞŽǁʹEŽŶǆĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ STATED CAPITAL The Stated Capital of the Company as at 31st March 2014 was (Alternate to Director Mr. Datuk Cheng Yoong Choong) Rs.2,795,513,620/- comprising of 272,129,431 ordinary shares. dŚĞĐŽŵƉĂŶǇĂůůŽƩĞĚϭϮϳ͕ϭϳϵ͕ϰϯϭŽƌĚŝŶĂƌǇƐŚĂƌĞƐĂƚZƐ͘ϮϬƉĞƌ Mr. Datuk Cheng Yoong Choong resigned as a Director of the share through a rights issue on 17th December 2012. The funds ŽŵƉĂŶǇǁŝƚŚĞīĞĐƚĨƌŽŵϯϭƐƚDĂǇϮϬϭϰ͘Dƌ͘,ŝĂEŐĞĞzĞŽǁ ƌĂŝƐĞĚĨƌŽŵƚŚŝƐƌŝŐŚƚƐŝƐƐƵĞǁĞƌĞƉĂƌƚůǇƵƐĞĚƚŽƐĞƩůĞďŽƌƌŽǁŝŶŐƐ ĐĞĂƐĞĚƚŽďĞŚŝƐĂůƚĞƌŶĂƚĞǁŝƚŚĞīĞĐƚĨƌŽŵϯϭƐƚDĂǇϮϬϭϰ͘ ĂŶĚƚŚĞďĂůĂŶĐĞĨƵŶĚƐĂƌĞŝŶǀĞƐƚĞĚŝŶƐŚŽƌƚƚĞƌŵŝŶƐƚƌƵŵĞŶƚƐƵŶƟů ƚŚĞƉůĂŶƐĨŽƌƉƌŽƉŽƐĞĚĞǆƉĂŶƐŝŽŶŽĨƌĞƚĂŝůƐƉĂĐĞĂƌĞĮŶĂůŝƐĞĚ͘ Annual declarations as per the format specified have been provided by the Directors regarding their independence and PROPERTY, PLANT & EQUIPMENT ďĂƐĞĚŽŶƐƵĐŚĚĞĐůĂƌĂƟŽŶƐƚŚĞŽĂƌĚŚĂƐĚĞƚĞƌŵŝŶĞĚƚŚĞĂďŽǀĞ dŚĞƚŽƚĂůŶĞƚĐĂƉŝƚĂůĞǆƉĞŶĚŝƚƵƌĞŽŶĂĐƋƵŝƐŝƟŽŶŽĨWƌŽƉĞƌƚǇ͕ƉůĂŶƚ Directors to be independent. ĂŶĚĞƋƵŝƉŵĞŶƚĚƵƌŝŶŐƚŚĞǇĞĂƌŝŶĐůƵĚŝŶŐĮŶĂŶĐĞůĞĂƐĞĚĂƐƐĞƚƐ amounted to Rs.433,069,954/- (2012/13-Rs.88,412,878/-). The

46 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 47 ANNUAL REPORT OF THE DIRECTORS ON THE STATE OF AFFAIRS ANNUAL REPORT OF THE DIRECTORS ON THE STATE OF AFFAIRS

DIRECTOR’S SHAREHOLDINGS dŚĞĂƩĞŶĚĂŶĐĞŽĨƚŚĞŵĞŵďĞƌƐĂƚƚŚĞďŽĂƌĚŵĞĞƟŶŐƐŝƐŐŝǀĞŶďĞůŽǁ The Directors’ holding of number of ordinary shares of the Company as at 31st March 2014 and as at the date of this report is as follows: EĂŵĞDĞĞƟŶŐƐŚĞůĚDĞĞƟŶŐƐĂƩĞŶĚĞĚ

Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞ Ϭϱ Ϭϱ Name of the Director As at 31st March 2014 As at 31st March 2013 ŚĂŝƌŵĂŶͬEŽŶǆĞĐƵƟǀĞŝƌĞĐƚŽƌ Ms. Otara Del Gunewardene 05 05 ǆĞĐƵƟǀĞŝƌĞĐƚŽƌͬK Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞ ϭ͕ϬϬϬ͕ϬϬϬ ϭ͕ϬϬϬ͕ϬϬϬ Mr. Paul Topping 05 03 EŽŶǆĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ Ms. Otara Del Gunewardene 80,833,100 80,833,100 Mr. Paul Topping Nil Nil Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ Ϭϱ Ϭϱ Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ Eŝů Eŝů EŽŶǆĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞǇ/ŐŶĂƟƵƐWĞƌĞƌĂ Ϭϱ Ϭϱ Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞǇ/ŐŶĂƟƵƐWĞƌĞƌĂ Eŝů Eŝů EŽŶǆĞĐƵƟǀĞ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽr Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ Ϭϱ Ϭϱ Mr. Datuk Cheng Yoong Choong* Nil Nil EŽŶǆĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ Dƌ͘<ŽŚ,ƵĂƚ>ĂŝϬϱ Ϭϱ Dƌ͘,ŝĂEŐĞĞzĞŽǁΎEŝů Eŝů EŽŶǆĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ (Alternate to Director Mr. Datuk Cheng Yoong Choong) Mr. Datak Cheng Yoong Choong 05 02 EŽŶǆĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ Eŝů Eŝů ;ƌĞƐŝŐŶĞĚŽŶϯϭƐƚDĂǇϮϬϭϰͿ Dƌ͘,ŝĂEŐĞĞzĞŽǁϬϱ Ϭϱ Dƌ͘<ŽŚ,ƵĂƚ>ĂŝEŝů Eŝů EŽŶǆĞĐƵƟǀĞEŽŶ/ŶĚĞƉĞŶĚĞŶƚŝƌĞĐƚŽƌ *Resigned w.e.f. 31st May 2014 ;ůƚĞƌŶĂƚĞƚŽŝƌĞĐƚŽƌDƌ͘ĂƚƵŬŚĞŶŐzŽŽŶŐŚŽŽŶŐͿ ;ƌĞƐŝŐŶĞĚŽŶϯϭƐƚDĂǇϮϬϭϰͿ EVENTS AFTER BALANCE SHEET DATE DIRECTORS’ INTEREST IN CONTRACTS RISK MANAGEMENT No circumstances have arisen and no material events have Directors’ interest in contracts of the Company is disclosed in occurred during the period between the Balance Sheet date and Note 27 to the Financial statements, and has been declared at ƐƉĂƌƚŽĨŐŽǀĞƌŶĂŶĐĞƉƌŽĐĞƐƐĞƐƚŚĞŽĂƌĚŽŶĂĐŽŶƟŶƵŽƵƐ Directors signing of Accounts that require disclosure or adjustment ŵĞĞƟŶŐƐŽĨƚŚĞŝƌĞĐƚŽƌƐĂŶĚĞŶƚĞƌĞĚŝŶƚŚĞ/ŶƚĞƌĞƐƚZĞŐŝƐƚĞƌŽĨ basis reviews and evaluates the internal controls and risks of the ƚŽƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͕ĞǆĐĞƉƚĨŽƌƚŚĞŝŶĨŽƌŵĂƟŽŶĚŝƐĐůŽƐĞĚ the Company. The Directors have no direct or indirect interest ĐŽŵƉĂŶǇĂŶĚƚĂŬĞƐĂŶǇŵĞĂƐƵƌĞƐƌĞƋƵŝƌĞĚƚŽŵŝƟŐĂƚĞƚŚĞƌŝƐŬƐ͘ in Note 31 to the Financial Statement. in any other contract or proposed contract with the Company. CONTINGENT LIABILITIES AND COMMITMENTS AUDITORS CORPORATE GOVERNANCE dŽƚŚĞďĞƐƚŽĨŬŶŽǁůĞĚŐĞĂŶĚŝŶĨŽƌŵĂƟŽŶĂǀĂŝůĂďůĞƚŽƚŚĞŽĂƌĚ /ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽŵƉĂŶŝĞƐĐƚEŽ͘ϳŽĨϮϬϬϳ͕ƌĞƐŽůƵƟŽŶ The Board of Directors has acknowledged the responsibility to ƚŚĞƌĞĂƌĞŶŽĐŽŶƟŶŐĞŶĐŝĞƐŽƌĐŽŵŵŝƚŵĞŶƚƐ͕ĞǆĐĞƉƚĨŽƌƚŚĞŝƚĞŵƐ proposing the re-appointment of Messrs. Ernst and Young, ĞŶƐƵƌĞŐŽŽĚŐŽǀĞƌŶĂŶĐĞŝŶĐŽŶĚƵĐƟŶŐƚŚĞďƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐŽĨ ƚŚĂƚĂƌĞůŝƐƚĞĚŽŶEŽƚĞϮϲƚŽƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ Chartered Accountants, as Auditors to the Company will be the company. Further, independent directors have been appointed ƐƵďŵŝƩĞĚĂƚƚŚĞŶŶƵĂů'ĞŶĞƌĂůDĞĞƟŶŐ͘ ƚŽƚŚĞŽĂƌĚĂŶĚŽĂƌĚŽŵŵŝƩĞĞƐŚĂǀĞďĞĞŶƐĞƚƵƉĂƐĨŽůůŽǁƐ͘ By Order of the Board of ƵĚŝƚŽŵŵŝƩĞĞ Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ;ŚĂŝƌŵĂŶͿ Odel PLC Mr. Paul Topping Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ

ZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞ Mr. Paul Topping (Chairman) Mr. A.D.E.I. Perera (sgd) (sgd) (sgd) Dƌ͘^͘^͘<ƵůĂƚƵŶŐĂ Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ Ruchi Gunewardene Otara Gunewardene S S P Corporate Services Chairman Director/CEO (Private) Limited Secretaries

29th May 2014

48 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 49 THE STATEMENT OF DIRECTORS’RESPONSIBILITY REPORT OF THE REMUNERATION COMMITTEE

dŚĞƌĞƐƉŽŶƐŝďŝůŝƚǇŽĨƚŚĞŝƌĞĐƚŽƌƐŝŶƌĞůĂƟŽŶƚŽƚŚĞĮŶĂŶĐŝĂů dŚĞĚŝƌĞĐƚŽƌƐĂƌĞƌĞƋƵŝƌĞĚƚŽƉƌĞƉĂƌĞƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚ The Remuneration Committee comprised the following Non REMUNERATION COMMITTEE MEETINGS statements is set out in this statement. The responsibility of to provide the auditors with every opportunity to take whatever Executive Directors at the year-end three of whom were dŚĞŽŵŵŝƩĞĞĚŝĚŶŽƚŵĞĞƚĨŽƌŵĂůůǇĚƵƌŝŶŐƚŚĞǇĞĂƌ͘ ƚŚĞĂƵĚŝƚŽƌƐ͕ŝŶƌĞůĂƟŽŶƚŽƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƉƌĞƉĂƌĞĚŝŶ ƐƚĞƉƐĂŶĚƵŶĚĞƌƚĂŬĞǁŚĂƚĞǀĞƌŝŶƐƉĞĐƟŽŶƐƚŚĂƚŵĂǇďĞ independent. accordance with the provisions of the Companies Act No 7 of considered being appropriate to enable them to give their audit dŚĞĂŐŐƌĞŐĂƚĞƌĞŵƵŶĞƌĂƟŽŶƉĂŝĚƚŽŝƌĞĐƚŽƌƐŝƐĚŝƐĐůŽƐĞĚŝŶEŽƚĞ 2007, is set out in the Report of the Auditors. opinion. Mr. Paul Topping – Chairman ϳƚŽƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘

dŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĐŽŵƉƌŝƐĞŽĨ͗ &ƵƌƚŚĞƌ͕ĂƐƌĞƋƵŝƌĞĚďǇ^ĞĐƟŽŶϱϲ;ϮͿŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚEŽϳ Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞǇ/ŐŶĂƟƵƐWĞƌĞƌĂ ^ƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶǁŚŝĐŚƉƌĞƐĞŶƚƐĂƚƌƵĞĂŶĚĨĂŝƌ ŽĨϮϬϬϳ͕ƚŚĞŽĂƌĚŽĨĚŝƌĞĐƚŽƌƐŚĂƐĐŽŶĮƌŵĞĚƚŚĂƚƚŚĞĐŽŵƉĂŶǇ͕ ǀŝĞǁŽĨƚŚĞƐƚĂƚĞŽĨĂīĂŝƌƐŽĨƚŚĞĐŽŵƉĂŶǇĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐĂƐ ďĂƐĞĚŽŶƚŚĞŝŶĨŽƌŵĂƟŽŶĂǀĂŝůĂďůĞ͕ƐĂƟƐĮĞĚƚŚĞƐŽůǀĞŶĐǇƚĞƐƚ Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ ĂƚƚŚĞĞŶĚŽĨƚŚĞĮŶĂŶĐŝĂůǇĞĂƌ͖ĂŶĚ ŝŵŵĞĚŝĂƚĞůǇĂŌĞƌƚŚĞĚŝƐƚƌŝďƵƟŽŶ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ĞĐƟŽŶ (sgd) 57 of the Companies Act no 7 of 2007. The board of directors has Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ Income statement& statement of comprehensive income of ŽďƚĂŝŶĞĚĐĞƌƟĮĐĂƚĞƐĨƌŽŵƚŚĞĂƵĚŝƚŽƌƐ͕ƉƌŝŽƌƚŽĚĞĐůĂƌŝŶŐĮŶĂů Paul Topping the company and its subsidiaries, which presents a true and fair ŝǀŝĚĞŶĚŽĨZƐ͘Ϭ͘ϭϬƉĞƌƐŚĂƌĞĨŽƌƚŚĞĮŶĂŶĐŝĂůǇĞĂƌĞŶĚĞĚϯϭƐƚ THE RESPONSIBILITIES OF THE REMUNERATION ŚĂŝƌŵĂŶʹZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞ ǀŝĞǁŽĨƚŚĞƉƌŽĮƚͬůŽƐƐŽĨƚŚĞĐŽŵƉĂŶǇĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐĨŽƌ March 2013 .(Paid on 19th June 2014) and an Interim Dividend of 29th May 2014. ƚŚĞĮŶĂŶĐŝĂůǇĞĂƌ͘ ZƐ͘Ϭ͘ϭϮƉĞƌƐŚĂƌĞĨŽƌƚŚĞĮŶĂŶĐŝĂůǇĞĂƌĞŶĚĞĚϯϭƐƚDĂƌĐŚϮϬϭϰ͘ COMMITTEE INCLUDE, (paid on 28th November 2013) dŚĞĚŝƌĞĐƚŽƌƐĂƌĞƌĞƋƵŝƌĞĚƚŽĐŽŶĮƌŵƚŚĂƚƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ ŶƐƵƌŝŶŐƚŚĞƌĞŵƵŶĞƌĂƟŽŶƉŽůŝĐǇŽĨƚŚĞĐŽŵƉĂŶǇƉƌŽǀŝĚĞƐĂ ŚĂǀĞďĞĞŶƉƌĞƉĂƌĞĚ͖ The directors are of the view that they have discharged their ĐŽŵƉĞƟƟǀĞ͕ĂƩƌĂĐƟǀĞĂŶĚƌĞĂƐŽŶĂďůĞƌĞŵƵŶĞƌĂƟŽŶƉĂĐŬĂŐĞĨŽƌ ƵƐŝŶŐĂƉƉƌŽƉƌŝĂƚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐǁŚŝĐŚŚĂǀĞďĞĞŶƐĞůĞĐƚĞĚ ƌĞƐƉŽŶƐŝďŝůŝƟĞƐĂƐƐĞƚŽƵƚŝŶƚŚŝƐƐƚĂƚĞŵĞŶƚ͘ employees at all levels on par with industry standards giving due and applied in a consistent manner, and material departures, if ĐŽŶƐŝĚĞƌĂƟŽŶƚŽďƵƐŝŶĞƐƐƉĞƌĨŽƌŵĂŶĐĞĂŶĚůŽŶŐƚĞƌŵƐŚĂƌĞŚŽůĚĞƌ ĂŶǇ͕ŚĂǀĞďĞĞŶĚŝƐĐůŽƐĞĚĂŶĚĞǆƉůĂŝŶĞĚ͖ĂŶĚ COMPLIANCE REPORT returns. dŚĞĚŝƌĞĐƚŽƌƐĐŽŶĮƌŵƚŚĂƚƚŽƚŚĞďĞƐƚŽĨƚŚĞŝƌŬŶŽǁůĞĚŐĞ͕ĂůůƚĂǆĞƐ͕ ŶƐƵƌŝŶŐƚŚĞƌĞŵƵŶĞƌĂƟŽŶƉĂĐŬĂŐĞŽĨĞŵƉůŽǇĞĞŝƐůŝŶŬĞĚƚŽ ƉƌĞƐĞŶƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ^ƌŝ>ĂŶŬĂĐĐŽƵŶƟŶŐ ĚƵƟĞƐĂŶĚůĞǀŝĞƐƉĂǇĂďůĞďǇƚŚĞĐŽŵƉĂŶǇĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐ͕Ăůů ƉĞƌĨŽƌŵĂŶĐĞ͕ƌĞƐƉŽŶƐŝďŝůŝƚǇ͕ĞǆƉĞƌƟƐĞĂŶĚĐŽŶƚƌŝďƵƟŽŶ͘ ^ƚĂŶĚĂƌĚƐ͖ĂŶĚƚŚĂƚ ĐŽŶƚƌŝďƵƟŽŶƐ͕ůĞǀŝĞƐĂŶĚƚĂǆĞƐƉĂǇĂďůĞŽŶďĞŚĂůĨŽĨĂŶĚŝŶƌĞƐƉĞĐƚ of the employees of the company and its subsidiaries, and all other ŶƐƵƌŝŶŐĨŽƌŵĂůĂŶĚƚƌĂŶƐƉĂƌĞŶƚƉƌŽĐĞĚƵƌĞŝŶŝŵƉůĞŵĞŶƟŶŐ ƌĞĂƐŽŶĂďůĞĂŶĚƉƌƵĚĞŶƚũƵĚŐĞŵĞŶƚƐĂŶĚĞƐƟŵĂƚĞƐŚĂǀĞďĞĞŶ known statutory dues as were due and payable by the company ƚŚĞƌĞŵƵŶĞƌĂƟŽŶƉŽůŝĐǇŽĨƚŚĞŽŵƉĂŶǇ͘ ŵĂĚĞƐŽƚŚĂƚƚŚĞĨŽƌŵĂŶĚƐƵďƐƚĂŶĐĞŽĨƚƌĂŶƐĂĐƟŽŶƐĂƌĞƉƌŽƉĞƌůǇ and its subsidiaries as at the balance sheet date have been paid, ƌĞŇĞĐƚĞĚ͖ĂŶĚ or where relevant provided for. ZĞĐŽŵŵĞŶĚŝŶŐƚŽƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐƚŚĞƌĞŵƵŶĞƌĂƟŽŶ ƉĂĐŬĂŐĞŽĨƚŚĞŚŝĞĨǆĞĐƵƟǀĞKĸĐĞƌ͘ ƉƌŽǀŝĚĞƚŚĞŝŶĨŽƌŵĂƟŽŶƌĞƋƵŝƌĞĚďǇĂŶĚŽƚŚĞƌǁŝƐĞĐŽŵƉůǇ By Order of the Board ǁŝƚŚƚŚĞŽŵƉĂŶŝĞƐĐƚĂŶĚƚŚĞ>ŝƐƟŶŐZƵůĞƐŽĨƚŚĞŽůŽŵďŽ Stock Exchange. SSP Corporate Services (Pvt) Ltd The directors are also required to ensure that the company has Secretaries ĂĚĞƋƵĂƚĞƌĞƐŽƵƌĐĞƐƚŽĐŽŶƟŶƵĞŝŶŽƉĞƌĂƟŽŶƚŽũƵƐƟĨǇĂƉƉůǇŝŶŐ ƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐŝŶƉƌĞƉĂƌŝŶŐƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ 29 May 2014 Further, the directors have a responsibility to ensure that the ĐŽŵƉĂŶǇŵĂŝŶƚĂŝŶƐƐƵĸĐŝĞŶƚĂĐĐŽƵŶƟŶŐƌĞĐŽƌĚƐƚŽĚŝƐĐůŽƐĞ͕ ǁŝƚŚƌĞĂƐŽŶĂďůĞĂĐĐƵƌĂĐǇƚŚĞĮŶĂŶĐŝĂůƉŽƐŝƟŽŶŽĨƚŚĞĐŽŵƉĂŶǇ and of the group.

The directors are also responsible for taking reasonable steps to safeguard the assets of the company and of the group and in ƚŚŝƐƌĞŐĂƌĚƚŽŐŝǀĞƉƌŽƉĞƌĐŽŶƐŝĚĞƌĂƟŽŶƚŽƚŚĞĞƐƚĂďůŝƐŚŵĞŶƚŽĨ ĂƉƉƌŽƉƌŝĂƚĞŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐǇƐƚĞŵƐǁŝƚŚĂǀŝĞǁƚŽƉƌĞǀĞŶƟŶŐ ĂŶĚĚĞƚĞĐƟŶŐĨƌĂƵĚĂŶĚŽƚŚĞƌŝƌƌĞŐƵůĂƌŝƟĞƐ

50 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 51 REPORT OF THE AUDIT COMMITTEE FINANCIAL CALENDAR

COMPOSITION OF THE AUDIT COMMITTEE SUMMARY OF ACTIVITIES ZĞƐƵůƚƐ ĂƚĞƵƚŚŽƌŝǌĞĚ dŚĞƵĚŝƚŽŵŵŝƩĞĞ͕ĂƉƉŽŝŶƚĞĚďǇĂŶĚƌĞƐƉŽŶƐŝďůĞƚŽƚŚĞŽĂƌĚ FINANCIAL REPORTING ŽĨŝƌĞĐƚŽƌƐ͕ĐŽŵƉƌŝƐĞƐƚŚƌĞĞEŽŶͲǆĞĐƵƟǀĞŝƌĞĐƚŽƌƐ͕ƚǁŽŽĨ Interim Report for 1st Quarter - 2014 6 August 2013 The Committee reviewed the Financial Reporting System to Interim Report for 2nd Quarter - 2014 6 November 2013 ǁŚŽŵĂƌĞŝŶĚĞƉĞŶĚĞŶƚ͘dŚĞŽŵŵŝƩĞĞŝƐŵĂĚĞƵƉŽĨŵĞŵďĞƌƐ ĚĞƚĞƌŵŝŶĞƚŚĞĂĐĐƵƌĂĐǇĂŶĚƟŵĞůŝŶĞƐƐŽĨƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ ǁŚŽďƌŝŶŐƚŚĞŝƌǀĂƌŝĞĚĞǆƉĞƌƟƐĞĂŶĚŬŶŽǁůĞĚŐĞƚŽĞīĞĐƟǀĞůǇĐĂƌƌǇ Interim Report for 3rd Quarter - 2014 10 February 2014 ƉƵďůŝƐŚĞĚ͘dŚĞŽŵŵŝƩĞĞĂůƐŽƌĞǀŝĞǁĞĚƚŚĞŝŶƚĞƌŝŵĂŶĚǇĞĂƌͲĞŶĚ Interim Report for 4th Quarter - 2014 29 May 2014 ŽƵƚƚŚĞŝƌĚƵƟĞƐ͘DĞŵďĞƌƐŽĨƚŚĞŽŵŵŝƩĞĞĂƌĞ͖ &ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐƉƌŝŽƌƚŽƉƵďůŝĐĂƟŽŶ͕ŝŶŽƌĚĞƌƚŽĚĞƚĞƌŵŝŶĞ that the statutory requirements have been complied with and the Dividends Date Paid Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂͲŚĂŝƌŵĂŶ ŽŵƉĂŶǇ͛ƐĐĐŽƵŶƟŶŐWŽůŝĐŝĞƐŚĂǀĞďĞĞŶĐŽŶƐŝƐƚĞŶƚůǇĂƉƉůŝĞĚ͘ Mr. Paul Topping Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ Final Dividend 2012/2013 19 June 2013 INTERNAL AUDIT Interim Dividend 2013/2014 28 November 2013 dŚĞĨƵŶĐƟŽŶƐŽĨƚŚĞƵĚŝƚŽŵŵŝƩĞĞĂƌĞŐŽǀĞƌŶĞĚďǇĂŶƵĚŝƚ dŚĞŽŵŵŝƩĞĞŵŽŶŝƚŽƌĞĚƚŚĞĞīĞĐƟǀĞŶĞƐƐŽĨƚŚĞ/ŶƚĞƌŶĂůƵĚŝƚ Final Dividend 2013/2014 (Declared on 29 May 2014) ŽŵŵŝƩĞĞŚĂƌƚĞƌ͕ǁŚŝĐŚŝƐƌĞǀŝĞǁĞĚĂŶŶƵĂůůǇ͘ &ƵŶĐƟŽŶĂŶĚƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨƚŚĞƌĞĐŽŵŵĞŶĚĂƟŽŶƐŵĂĚĞ by Internal Audit. OBJECTIVES AND ROLE OF THE AUDIT COMMITTEE dŚĞŵĂŝŶŽďũĞĐƟǀĞŽĨƚŚĞƵĚŝƚŽŵŵŝƩĞĞŝƐƚŽĂƐƐŝƐƚƚŚĞŽĂƌĚ EXTERNAL AUDIT of Directors to perform its duties effectively and efficiently. dŚĞŽŵŵŝƩĞĞŵĞƚƚŚĞĞǆƚĞƌŶĂůĂƵĚŝƚŽƌƐƉƌŝŽƌƚŽĂƉƉƌŽǀŝŶŐƚŚĞ Accordingly, the objectives of the Audit Committee can be ŶŶƵĂů&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐƚŽƐĂƟƐĨǇƚŚĂƚƚŚĞǇǁĞƌĞƉƌŽǀŝĚĞĚ described in detail as follows: adequate access to information needed for their audit. The ĐŽŵŵŝƩĞĞĂůƐŽƌĞǀŝĞǁĞĚƚŚĞƐƚĂƚƵƐŽĨƚŚĞŝƌŝŶĚĞƉĞŶĚĞŶĐĞ͘ KǀĞƌƐĞĞƚŚĞĮŶĂŶĐŝĂůƌĞƉŽƌƟŶŐƉƌŽĐĞƐƐĂŶĚĚĞƚĞƌŵŝŶĞƚŚĂƚ ƚŚĞĮŶĂŶĐŝĂůƌĞƉŽƌƚƐƉƌĞƐĞŶƚĂĐĐƵƌĂƚĞ͕ĐŽŵƉůĞƚĞĂŶĚƟŵĞůǇ CONCLUSION ĮŶĂŶĐŝĂůŝŶĨŽƌŵĂƟŽŶ͘ ĂƐĞĚŽŶƚŚĞƌĞǀŝĞǁŽĨƌĞƉŽƌƚƐƐƵďŵŝƩĞĚďǇƚŚĞǆƚĞƌŶĂůĂŶĚ /ŶƚĞƌŶĂůƵĚŝƚŽƌƐ͕ƚŚĞŝŶĨŽƌŵĂƟŽŶŽďƚĂŝŶĞĚĨƌŽŵŵĂŶĂŐĞŵĞŶƚ DŽŶŝƚŽƌƚŚĞĞīĞĐƟǀĞŶĞƐƐŽĨƚŚĞŽŵƉĂŶǇ͛ƐƌŝƐŬŵĂŶĂŐĞŵĞŶƚ ƚŚĞŽŵŵŝƩĞĞŚĂǀŝŶŐĞǆĂŵŝŶĞĚƚŚĞĂĚĞƋƵĂĐǇĂŶĚĞīĞĐƟǀĞŶĞƐƐ processes and the internal control system. of the internal controls which have been designed to provide a reasonable but not absolute assurance to Directors that the assets To assess the independence of the External Auditor and monitor ŽĨƚŚĞĐŽŵƉĂŶǇĂƌĞƐĂĨĞŐƵĂƌĚĞĚ͕ŝƐƐĂƟƐĮĞĚƚŚĂƚƚŚĞĮŶĂŶĐŝĂů the performance of Internal and External Auditors. ƉŽƐŝƟŽŶŽĨƚŚĞĐŽŵƉĂŶǇŝƐƌĞŐƵůĂƌůǇŵŽŶŝƚŽƌĞĚĂŶĚƚŚĂƚƐƚĞƉƐ ĂƌĞďĞŝŶŐƚĂŬĞŶƚŽĐŽŶƟŶƵŽƵƐůǇŝŵƉƌŽǀĞƚŚĞĐŽŶƚƌŽůĞŶǀŝƌŽŶŵĞŶƚ To recommend to the Board the appointment of External maintained within the Company. Auditors. dŚĞƵĚŝƚŽŵŵŝƩĞĞĚĞƚĞƌŵŝŶĞĚƚŚĂƚDĞƐƐƌƐƌŶƐƚΘzŽƵŶŐ dŽĞǆĂŵŝŶĞƌĞůĂƚĞĚƉĂƌƚǇƚƌĂŶƐĂĐƟŽŶƐĂƌĞĐĂƌƌŝĞĚŽŶĂŶĂƌŵƐ ĂƌĞŝŶĚĞƉĞŶĚĞŶƚŽŶƚŚĞďĂƐŝƐƚŚĂƚƚŚĞǇĚŽŶŽƚƉĂƌƟĐŝƉĂƚĞŝŶĂŶǇ length basis. ŵĂŶĂŐĞŵĞŶƚĂĐƟǀŝƚǇŽĨƚŚĞĐŽŵƉĂŶǇĂŶĚĚŽŶŽƚƉƌŽǀŝĚĞĂŶǇ non-audit services to the company and recommended to the MEETINGS Board of Directors that Messrs Ernst & Young be reappointed as dŚĞŽŵŵŝƩĞĞŚĞůĚϬϰŵĞĞƟŶŐƐĚƵƌŝŶŐƚŚĞǇĞĂƌƵŶĚĞƌƌĞǀŝĞǁ͘ ƐƚĂƚƵƚŽƌǇƵĚŝƚŽƌƐĨŽƌƚŚĞĮŶĂŶĐŝĂůǇĞĂƌĞŶĚŝŶŐϯϭƐƚDĂƌĐŚ͕ϮϬϭϱ͕ dŚĞŚŝĞĨǆĞĐƵƟǀĞKĸĐĞƌĂŶĚŚŝĞĨ&ŝŶĂŶĐĞKĸĐĞƌĂƩĞŶĚĞĚ subject to approval by the Shareholders at the forthcoming Annual ƚŚĞƐĞŵĞĞƟŶŐƐďǇŝŶǀŝƚĂƟŽŶ͘ 'ĞŶĞƌĂůDĞĞƟŶŐ͘ dŚĞĂƩĞŶĚĂŶĐĞŽĨƚŚĞŵĞŵďĞƌƐĂƚƚŚĞƐĞŵĞĞƟŶŐƐŝƐŐŝǀĞŶďĞůŽǁ͘

EĂŵĞDĞĞƟŶŐƩĞŶĚĞĚ ^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂͲŚĂŝƌŵĂŶ ϰ ŚĂŝƌŵĂŶʹƵĚŝƚŽŵŵŝƩĞĞ Mr. Paul Topping 2 29 May 2014. Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ ϰ

Ǉ/ŶǀŝƚĂƟŽŶ Ms.O.D.Gunewardene - CEO 4 Dƌ͘ZƵǁĂŶtŝũĞƌĂƚŶĞʹŚŝĞĨ&ŝŶĂŶĐĞKĸĐĞƌ ϰ Mr. Charith Yalagala – External Auditor 1

52 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 53 INCOME STATEMENT

Company Group INDEPENDENT AUDITOR’S REPORT For the year ended 31st March 20142014 2013 20142014 2013 TO THE SHAREHOLDERS OF ODEL PLC Note LKRLKR LKR LKRLKR LKR

Revenue 3. 4,591,712,096 4 ,532,970,765 4 ,595,053,622 4 ,533,676,999

REPORT ON THE FINANCIAL STATEMENTS Cost of sales (2,832,682,015) (2,799,776,757) (2,831,727,816) (2,798,202,812) tĞŚĂǀĞĂƵĚŝƚĞĚƚŚĞĂĐĐŽŵƉĂŶǇŝŶŐĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨKĚĞůW>;͞ŽŵƉĂŶǇ͟Ϳ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ ŽŵƉĂŶǇĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐ;͞'ƌŽƵƉ͟ͿǁŚŝĐŚĐŽŵƉƌŝƐĞƚŚĞƐƚĂƚĞŵĞŶƚƐŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƐĂƚϯϭDĂƌĐŚϮϬϭϰ͕ĂŶĚƚŚĞŝŶĐŽŵĞ ƐƚĂƚĞŵĞŶƚƐ͕ƐƚĂƚĞŵĞŶƚƐŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͕ƐƚĂƚĞŵĞŶƚƐŽĨĐŚĂŶŐĞƐŝŶĞƋƵŝƚǇĂŶĚƐƚĂƚĞŵĞŶƚƐŽĨĐĂƐŚŇŽǁƐĨŽƌƚŚĞǇĞĂƌƚŚĞŶ Gross profit 1,759,030,081 1 ,733,194,008 1 ,763,325,806 1 ,735,474,187 ĞŶĚĞĚ͕ĂŶĚĂƐƵŵŵĂƌǇŽĨƐŝŐŶŝĮĐĂŶƚĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂŶĚŽƚŚĞƌĞǆƉůĂŶĂƚŽƌǇŶŽƚĞƐƐĞƚŽƵƚŽŶƉĂŐĞƐϱϱƚŽϵϬŽĨƚŚĞĂŶŶƵĂůƌĞƉŽƌƚ͘

DĂŶĂŐĞŵĞŶƚ͛ƐƌĞƐƉŽŶƐŝďŝůŝƚǇĨŽƌƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ Other Operating income 4. 327,999,725 1 5,710,423 225,309,032 1 9,027,21 3 DĂŶĂŐĞŵĞŶƚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƟŽŶĂŶĚĨĂŝƌƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ƌŝ>ĂŶŬĂ ĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ͘dŚŝƐƌĞƐƉŽŶƐŝďŝůŝƚǇŝŶĐůƵĚĞƐ͗ĚĞƐŝŐŶŝŶŐ͕ŝŵƉůĞŵĞŶƟŶŐĂŶĚŵĂŝŶƚĂŝŶŝŶŐŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĞůĞǀĂŶƚƚŽƚŚĞ Distribution expenses (259,957,416) (231,367,278) (259,977,956) (231,510,016) ƉƌĞƉĂƌĂƟŽŶĂŶĚĨĂŝƌƉƌĞƐĞŶƚĂƟŽŶŽĨĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƚŚĂƚĂƌĞĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͖ ƐĞůĞĐƟŶŐĂŶĚĂƉƉůǇŝŶŐĂƉƉƌŽƉƌŝĂƚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐ͖ĂŶĚŵĂŬŝŶŐĂĐĐŽƵŶƟŶŐĞƐƟŵĂƚĞƐƚŚĂƚĂƌĞƌĞĂƐŽŶĂďůĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͘ Administrative expenses (1,472,594,934) (1,263,329,603) (1,396,488,016) (1,214,372,188) ^ĐŽƉĞŽĨĂƵĚŝƚĂŶĚďĂƐŝƐŽĨŽƉŝŶŝŽŶ KƵƌƌĞƐƉŽŶƐŝďŝůŝƚǇŝƐƚŽĞǆƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐďĂƐĞĚŽŶŽƵƌĂƵĚŝƚ͘tĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ^ƌŝ>ĂŶŬĂƵĚŝƟŶŐ^ƚĂŶĚĂƌĚƐ͘dŚŽƐĞƐƚĂŶĚĂƌĚƐƌĞƋƵŝƌĞƚŚĂƚǁĞƉůĂŶĂŶĚƉĞƌĨŽƌŵƚŚĞĂƵĚŝƚƚŽŽďƚĂŝŶƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞ Operating Profit 354,477,456 2 54,207,551 3 32,168,866 3 08,619,196 ǁŚĞƚŚĞƌƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͘

ŶĂƵĚŝƚŝŶĐůƵĚĞƐĞǆĂŵŝŶŝŶŐ͕ŽŶĂƚĞƐƚďĂƐŝƐ͕ĞǀŝĚĞŶĐĞƐƵƉƉŽƌƟŶŐƚŚĞĂŵŽƵŶƚƐĂŶĚĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘Ŷ Finance Costs 5. (120,118,812) (160,882,255) (120,118,812) (160,882,255) ĂƵĚŝƚĂůƐŽŝŶĐůƵĚĞƐĂƐƐĞƐƐŝŶŐƚŚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐƵƐĞĚĂŶĚƐŝŐŶŝĮĐĂŶƚĞƐƟŵĂƚĞƐŵĂĚĞďǇŵĂŶĂŐĞŵĞŶƚ͕ĂƐǁĞůůĂƐĞǀĂůƵĂƟŶŐ ƚŚĞŽǀĞƌĂůůĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƉƌĞƐĞŶƚĂƟŽŶ͘ Finance income 6. 4,812,813 83,934,478 4,812,813 83,934,478 tĞŚĂǀĞŽďƚĂŝŶĞĚĂůůƚŚĞŝŶĨŽƌŵĂƟŽŶĂŶĚĞǆƉůĂŶĂƟŽŶƐǁŚŝĐŚƚŽƚŚĞďĞƐƚŽĨŽƵƌŬŶŽǁůĞĚŐĞĂŶĚďĞůŝĞĨǁĞƌĞŶĞĐĞƐƐĂƌǇĨŽƌƚŚĞ purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion. Profit before tax 239,171,457 1 77,259,774 2 16,862,868 2 31,671,419 KƉŝŶŝŽŶ

/ŶŽƵƌŽƉŝŶŝŽŶ͕ƐŽĨĂƌĂƐĂƉƉĞĂƌƐĨƌŽŵŽƵƌĞǆĂŵŝŶĂƟŽŶ͕ƚŚĞŽŵƉĂŶǇŵĂŝŶƚĂŝŶĞĚƉƌŽƉĞƌĂĐĐŽƵŶƟŶŐƌĞĐŽƌĚƐĨŽƌƚŚĞǇĞĂƌĞŶĚĞĚϯϭ Income tax expense 8. 2,187,008 (64,903,823) (24,309,506) (74,349,206) DĂƌĐŚϮϬϭϰĂŶĚƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŐŝǀĞĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞŽŵƉĂŶǇ͛ƐĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƐĂƚϯϭDĂƌĐŚϮϬϭϰĂŶĚŝƚƐ ĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĂŶĚĐĂƐŚŇŽǁƐĨŽƌƚŚĞǇĞĂƌƚŚĞŶĞŶĚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ƌŝ>ĂŶŬĂĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ͘ Profit for the year 241,358,466 1 12,355,951 1 92,553,361 1 57,322,213 /ŶŽƵƌŽƉŝŶŝŽŶ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŐŝǀĞĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƐĂƚϯϭDĂƌĐŚϮϬϭϰĂŶĚƚŚĞ ĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĂŶĚĐĂƐŚŇŽǁƐĨŽƌƚŚĞǇĞĂƌƚŚĞŶĞŶĚĞĚ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ƌŝ>ĂŶŬĂĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ͕ŽĨƚŚĞŽŵƉĂŶǇ and its subsidiaries dealt with thereby, so far as concerns the shareholders of the Company. Attributable to:

Owners of the parent 192,553,361192,553,36 1 1 57,322,21 3 REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS dŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂůƐŽĐŽŵƉůǇǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ^ĞĐƟŽŶƐϭϱϭ;ϮͿĂŶĚϭϱϯ;ϮͿƚŽϭϱϯ;ϳͿŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚEŽ͘ 192,553,36192,553,361 1 1 57,322,21 3 07 of 2007.

Earning per share 24. 0.89 0.63 0.710.71 0.88

30 May 2014 Colombo The accounting policies and notes on page 60 through 90 form an integral part of the financial statements.

54 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 55 STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION As at 31 March 2014

For the year ended 31st March

3,092,579,8723,092,579,872 Company Group 76,139,41076,139,410 &ŽƌƚŚĞǇĞĂƌĞŶĚĞĚϯϭƐƚDĂƌĐŚ 20142014 201320 201414 2013 Note LKRLKR LKRLK LKRR LKR

WƌŽĮƚĨŽƌƚŚĞǇĞĂƌ 2241,358,46641,358,466 112,355,951 192192,553,361,553,361 157,322,213

Other comprehensive income

AcƚuĂriĂlgĂinsĂnd(lossĞs)on dĞĨinĞdbĞnĞĨiƚplĂns 18. (8,505,267) 477,158 ((10,167,680)10,167,680 ) 2,126,55 9 /ŶĐŽŵĞƚĂǆĞīĞĐƚ 22,381,475 ,381,475 - 2,846,9502 ,846,950 - (6,123,792)(6,123,792) 477,15 8 (7,320,730)(7,320,730) 2,126,55 9

RĞvĂluĂƚionoĨlĂndĂndbuildings 9. - 507,514,023 - 750,152,302 /ŶĐŽŵĞƚĂǆĞīĞĐƚ 4,691,202 - 4,691,202 - 512,205,225 - 754,843,504

OƚŚĞrcomprĞŚĞnsivĞincomĞ/ (6,123,792) 512,682,383 (7,320,730) 756,970,063 (loss)ĨorƚŚĞǇĞĂr,nĞƚoĨƚĂǆ Total comprehensive income for the year, net of tax 2 35,234,674 625,038,334 185,232,631185,232,631 914,292,276

Attributable to: EquiƚǇŚoldĞrsoĨƚŚĞpĂrĞnƚ 235,234,674 625,038,334 185,232,631185,232,631 914,292,276 6,468,137,1306,468,137,130 6,031,086,1186, 970,804,143970,804,143 6,414,626,917

dŚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂŶĚŶŽƚĞƐŽŶƉĂŐĞϲϬƚŚƌŽƵŐŚϵϬĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ dŚĞƐĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐĂƌĞŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚEŽ͘ϬϳŽĨϮϬϬϳ

(Sgd) R. Wijeratne Chief Finance Officer

dŚĞŽĂƌĚŽĨƌĞĐƚŽƌƐŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƟŽŶĂŶĚƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞƐĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͘^ŝŐŶĞĚĨŽƌĂŶĚŽŶďĞŚĂůĨŽĨƚŚĞŽĂƌĚďǇ͖

(Sgd) (Sgd) R. H. Gunewardene O.D . Gunewardene Chairman Director/CEO

dŚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂŶĚŶŽƚĞƐŽŶƉĂŐĞϲϬƚŚƌŽƵŐŚϵϬĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘

56 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 57 STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS

Company Group

Company Revaluation Stated Retained Total For the year ended 31st March Note 2014 2013 2014 2013 Reserve Capital Earnings Equity LKR LKR LKR LKR

LKR LKR LKR LKR CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES As at 01 April 2012 40 42,768,163 2 51,925,00 746,481,250 1,441,174,413 EĞƚƉƌŽĮƚďĞĨŽƌĞ/ŶĐŽŵĞƚĂǆĞǆƉĞŶƐĞ 2 39,1 171,45771,457 1 77,259,774 2 1 6 ,862,868 231,671,419 Adjustments for - Depreciation 9 9 5,551,905 8 4,362,680 1 1 4 ,706,218 101,406,760 Net profit for the year - - 112,355,951 112,355,951 Intangible assets amortization 10. - - 10,655,944 7,775,289 Finance costs 5. 119,894,616 160,510,150 1 1 9 ,894,616 160,510,150 Finance income 6. (4,812,813) ( 83,934,478) ( 4 , 8 12,813) (83,934,478) Other comprehensive income 512,205,225 - 477,158 512,682,383 Impairment of property plant and equipment 10,913,123 - 10,913,123 954,973,388 2 51,925,00 0 8 59,314,359 2,066,212,747 Profit on disposal of property, plant & equipment 4. 3,040,638 (6,294,643) 3,040,638 (6,247,192) Right issue - 2,543,588,620 - 2,543,588,620 Income on investment (220,717,726) (6,700,000) ( 2 2 0 ,717,726) (6,700,000) Impairement of investment 11. 1,000,000 - - Right issue expenses - - (18,363,417) (18,363,417) Impairement of receivables 15 221,621,2621,621,262 2,937,444 - - Dividends - - (72,475,000) (72,475,000) Lease interest 5. 2 24,196 3 72,105 2 2 4 ,196 372,105 Dividend income 4. (107,998,683) - - ZĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐs (1,574,772) - 1,574,772 - Provision for defined benefit plan s 18.1 8,988,907 7,724,659 1 0 , 1 30,288 9,680,208 As at 31 March 2013 953,398,616 2,795,513,620 770,050,71 4 4,518,962,951 KƉĞƌĂƟŶŐƉƌŽĮƚďĞĨŽƌĞ 1154,963,75954,963,759 3 48,150,814 2 4 9 ,984,229 425,447,384 ǁŽƌŬŝŶŐĐĂƉŝƚĂůĐŚĂŶŐĞƐ Decrease/(Increase) in inventories (138,108,287) (150,024,003) ( 1 3 2 ,409,797) (124,896,511) As at 01 April 2013 953,398,616 2,795,513,620 7 70,050,71 4 4,518,962,951 Decrease/(Increase) in trade and other receivables ( 89,125,950) 1 1,393,864 ( 8 9 , 779,669) 6,771,455 Net profit for the year - - 241,358,466 241,358,466 Decrease/(Increase) in dues from related parties (39,634,358) (19,030,822) - - Other comprehensive income - - (6,123,792) (6,123,792) Decrease/(Increase) in other current financial assets 1 62,312,750 ( 2,001,668,459) 1 6 2 ,312,750 (2,001,668,459) (Decrease)/Increase in dues to related parties (128,742,320) 6 1,718,647 - - 953,398,616 2,795,513,620 1 ,005,285,38 8 4,754,197,624 (Decrease)/Increase in trade and other payables 9,040,470 1 11,701,985 4 3 , 7 72,880 97,533,672 Dividends Paid -- (59,868,475) (59,868,475) (Decrease)/Increase in deferred liability 4,001,223 1 4 , 2 1 7 , 6 8 8 4,001,223 14,217,688 ZĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐs (1,108,580) - 1,108,580 - ĂƐŚŐĞŶĞƌĂƚĞĚĨƌŽŵŽƉĞƌĂƟŽŶƐ ((65,292,713) 65,292,713) ( 1,623,540,286) 2 3 7 ,881,617 (1,582,594,771) As at 31 March 2014 952,290,037 2,795,513,620 946,525,49 3 4,694,329,150 Finance costs paid 5. (119,894,616) (160,510,150) ( 1 1 9 ,894,616) (160,510,150) Defined benefit plan costs paid 18 ( 1,778,364) ( 4,149,774) ( 2 , 1 75,102) (4,229,825) Attributable to equity holders of the parent Income tax paid/Dividend Tax Paid ( 38,859,639) ( 31,834,292) ( 6 1 , 875,953) (36,450,565) Group EĞƚĐĂƐŚĨƌŽŵͬ;ƵƐĞĚŝŶͿŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐ ((225,825,331)225,825,331) ( 1,820,034,502) 5 3 , 9 35,947 (1,783,785,311) Revaluation Stated Retained Total CASH FLOWS FROM / (USED IN) Reserve Capital Earnings Equity INVESTING ACTIVITIES LKR LKR LKR LKR Acquisition of property, plant & equipment 9. (269,892,012) ( 56,714,938) ( 4 3 3 ,069,954) (88,412,878) Investment in equity shares of subsidiaries 11. - (10) - 50 70,415,036 2 51,925,00 9 02,864,017 1,725,204,053 As at 01 April 2012 Acquisition of intangible assets 10. - ( 7 , 2 69,082) (5,473,448) ŽŶƐŽůŝĚĂƟŽŶĂĚũƵƐƚŵĞŶƚƐ 1,460,606 1,460,606 Dividend received 4. 1 07,998,683 - - 570,415,036 2 51,925,00 0 9 04,324,623 1,726,664,659 Finance income 6. 4 ,812,813 8 3,934,478 4 , 8 1 2,813 83,934,478 Net profit for the year - - 157,322,213 157,322,213 Proceed from disposal of fixed assets 3 00,000 7 ,558,018 3 0 0 ,000 7,653,692 Other comprehensive income 754,843,505 - 2,126,559 756,970,064 EĞƚĐĂƐŚŇŽǁƐĨƌŽŵͬ;ƵƐĞĚŝŶͿ ((156,780,516)156,780,516) 3 4,777,548 ( 4 3 5 ,226,223) (2,298,156) 1,325,258,541 2 51,925,00 0 1,063,773,395 2,640,956,936 ŝŶǀĞƐƟŶŐĂĐƟǀŝƟĞƐ Dividends - - (72,475,000) (72,475,000) CASH FLOWS FROM / (USED IN) Right Issue - 2,543,588,620 2 ,543,588,62 0 FINANCING ACTIVITIES Cost of Right Issue - - (18,363,417) (18,363,417) Repayment of interest bearing borrowings 17.1 ( 1,838,580,027) (946,924,330) ( 1 , 8 38,580,027) (946,924,330) ZĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐs (7,011,024) - 7,011,024 - EĞƚƉƌŽĐĞĞĚƐĨƌŽŵƌŝŐŚƚŝƐƐƵĞ - 2 ,525,225,203 - 2,525,225,203 As at 31 March 2013 10 ,318,247,517 2,795,513,62 979,946,003 5,093,707,139 Lease rental paid ((1,441,349) 1,441,349) ( 1,219,603) ( 1 , 4 41,349) (1,219,603)

As at 01 April 2013 10,318,247,517 2,795,513,62 9 79,946,003 5,093,707,139 Proceeds from interest bearing borrowings 17.1 2,212,560,459 7 29,023,836 2 , 2 1 2,560,459 729,023,836 Dividends paid ((59,868,475) 59,868,475) ( 72,475,000) ( 5 9 , 868,475) (72,475,000) Net profit for the year - - 192,553,361 192,553,361 EĞƚĐĂƐŚŇŽǁƐĨƌŽŵͬ;ƵƐĞĚŝŶͿ 3312,670,608 12,670,608 2 ,233,630,106 3 1 2 ,670,608 2,233,630,106 ĮŶĂŶĐŝŶŐĂĐƟǀŝƟĞƐ Other comprehensive income - - (7,320,730) (7,320,730) EĞƚŝŶĐƌĞĂƐĞͬ;ĚĞĐƌĞĂƐĞͿŝŶĐĂƐŚĂŶĚ (69,935,239)( 69,935,239) 4 4 8 , 3 7 3 , 1 5 2 (68,619,668) ) 447,546,639 1,318,247,517 2 ,795,513,62 0 1 ,165,178,634 5,278,939,771 ĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ Dividends - - (59,868,475) (59,868,475) ZĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐƚƌĂŶƐĨĞƌƌĞĚƚŽƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐs (7,689,814) - 7,689,814 - ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚƚŚĞ 17,17,911,577 911,577 ( 4 3 0 , 4 61,573) 19,140,868 (428,405,770) ďĞŐŝŶŶŝŶŐŽĨƚŚĞƉĞƌŝŽĚ As at 31 March 2014 1 ,310,557,703 2,795,513,620 1 ,112,999,973 5,219,071,296

ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚƚŚĞĞŶĚŽĨƚŚĞƉĞƌŝŽĚ 21 (52(52,023,662),023,662) 1 7 , 9 11,579 (49,478,800) 19,140,869 dŚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂŶĚŶŽƚĞƐŽŶƉĂŐĞϲϬƚŚƌŽƵŐŚϵϬĨŽƌŵĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘

58 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 59 1. CORPORATE INFORMATION KĚĞůWƌŽƉĞƌƟĞƐ;WǀƚͿ>ƚĚ ^>&Z^ϭϬͲŽŶƐŽůŝĚĂƚĞĚ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ 2.3 SIGNIFICANT JUDGEMENTS, ƵƌŝŶŐƚŚĞǇĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶǇǁĞƌĞ ESTIMATES AND ASSUMPTIONS 1.1 GENERAL ƚŽĐĂƌƌǇŽƵƚƌĞĂůĞƐƚĂƚĞĂĐƟǀŝƟĞƐŝŶƌĞůĂƟŽŶƚŽƌĞƚĂŝůďƵƐŝŶĞƐƐ ^>&Z^ϭϬƌĞƉůĂĐĞƐƚŚĞƉŽƌƟŽŶŽĨ><^ϮϳŽŶƐŽůŝĚĂƚĞĚĂŶĚ ^ĞƉĂƌĂƚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐƚŚĂƚĂĚĚƌĞƐƐĞƐƚŚĞĂĐĐŽƵŶƟŶŐĨŽƌ dŚĞƉƌĞƉĂƌĂƟŽŶŽĨƚŚĞ'ƌŽƵƉĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ Odel PLC is a limited liability company incorporated and do- Odel Lanka (Pvt) Ltd ĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘/ƚĂůƐŽĂĚĚƌĞƐƐĞƐƚŚĞŝƐƐƵĞƐ ƌĞƋƵŝƌĞƐŵĂŶĂŐĞŵĞŶƚƚŽŵĂŬĞũƵĚŐŵĞŶƚƐ͕ĞƐƟŵĂƚĞƐĂŶĚĂƐ- miciled in Sri Lanka whose shares are publicly traded in the WƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶǇĂƌĞƚŽŽƉĞƌĂƚĞĂƐŚŽƉƉŝŶŐ ƌĂŝƐĞĚŝŶ^/ͲϭϮŽŶƐŽůŝĚĂƟŽŶ ƐƵŵƉƟŽŶƐƚŚĂƚĂīĞĐƚƚŚĞƌĞƉŽƌƚĞĚĂŵŽƵŶƚƐŽĨƌĞǀĞŶƵĞƐ͕Ğǆ- ŽůŽŵďŽ^ƚŽĐŬǆĐŚĂŶŐĞ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨKĚĞůW>ŝƐ ĐŽŵƉůĞǆͬƌĞƚĂŝůŵĂůůĂŶĚƚŚĞŽƉĞƌĂƟŽŶƐŚĂǀĞŶŽƚǇĞƚĐŽŵ- ƉĞŶƐĞƐ͕ĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐ͕ĂŶĚƚŚĞĂĐĐŽŵƉĂŶǇŝŶŐĚŝƐĐůŽƐƵƌĞƐ͕ ůŽĐĂƚĞĚĂƚEŽϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝǇĂ͘KĚĞůW>ŝƐƚŚĞ menced. ^>&Z^ϭϭ:ŽŝŶƚƌƌĂŶŐĞŵĞŶƚƐ ĂŶĚƚŚĞĚŝƐĐůŽƐƵƌĞŽĨĐŽŶƟŶŐĞŶƚůŝĂďŝůŝƟĞƐ͘hŶĐĞƌƚĂŝŶƚǇĞǆŝƐƚƐĂƚ holding company of the Group and therefore, it does not have ƚŚĞĚĂƚĞŽĨƉƌĞƉĂƌĂƟŽŶ͕ĂďŽƵƚƚŚĞƐĞĂƐƐƵŵƉƟŽŶƐĂŶĚĞƐƟŵĂƚĞƐ ĂŶŝĚĞŶƟĮĂďůĞŝŵŵĞĚŝĂƚĞŽƌƵůƟŵĂƚĞƉĂƌĞŶƚŽĨŝƚƐŽǁŶĂŶĚƚŚĞ KĚĞů/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐǇ^ĞƌǀŝĐĞƐ;WǀƚͿ>ƚĚ ^>&Z^ϭϭƌĞƉůĂĐĞƐ><^ϯϭ/ŶƚĞƌĞƐƚƐŝŶũŽŝŶƚǀĞŶƚƵƌĞƐĂŶĚ^/Ͳ and hence, may result in outcomes that require a material adjust- details of subsidiary companies are as follows. ƵƌŝŶŐƚŚĞǇĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶǇǁĞƌĞƚŽ ϭϯ:ŽŝŶƚůǇͲĐŽŶƚƌŽůůĞĚŶƟƟĞƐEŽŶͲDĂŶĚĂƚŽƌǇŽŶƚƌŝďƵƟŽŶƐďǇ ment to the recorded carrying amount of the asset or liability as ƉƌŽǀŝĚĞŝŶĨŽƌŵĂƟŽŶƚĞĐŚŶŽůŽŐǇŝŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚŵĂŝŶƚĞŶĂŶĐĞ sĞŶƚƵƌĞƐ͘^>&Z^ϭϭƌĞŵŽǀĞƐƚŚĞŽƉƟŽŶƚŽĂĐĐŽƵŶƚĨŽƌũŽŝŶƚůǇ ĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞŽƌŝŶĨƵƚƵƌĞƉĞƌŝŽĚƐ͘ services for the group companies. ĐŽŶƚƌŽůůĞĚĞŶƟƟĞƐ;:ƐͿƵƐŝŶŐƉƌŽƉŽƌƟŽŶĂƚĞĐŽŶƐŽůŝĚĂƟŽŶ͘ SUBSIDIARIES /ŶƐƚĞĂĚ͕:ƐƚŚĂƚŵĞĞƚƚŚĞĚĞĮŶŝƟŽŶŽĨĂũŽŝŶƚǀĞŶƚƵƌĞŵƵƐƚ JUDGMENTS ^>/ŶƚĞƌŶĂƟŽŶĂů;WǀƚͿ>ƚĚ be accounted for using the equity method. Odel Apparels (Pvt) Ltd ƵƌŝŶŐƚŚĞǇĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶǇǁĞƌĞ /ŶƚŚĞƉƌŽĐĞƐƐŽĨĂƉƉůǇŝŶŐƚŚĞ'ƌŽƵƉ͛ƐĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐ͕ŵĂŶ- Odel Apparels (Pvt) Ltd is a limited liability company incorpo- import and export of fashion accessories. ^>&Z^ϭϮŝƐĐůŽƐƵƌĞŽĨ/ŶƚĞƌĞƐƚƐŝŶKƚŚĞƌŶƟƟĞƐ agement has made following judgments which have the most ƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨƚŚĞ ƐŝŐŶŝĮĐĂŶƚĞīĞĐƚŽŶƚŚĞĂŵŽƵŶƚƐƌĞĐŽŐŶŝǌĞĚŝŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚ ŽŵƉĂŶǇŝƐůŽĐĂƚĞĚĂƚEŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝǇĂĂŶĚƚŚĞ 'ƌĞĞŶĮĞůĚdƌĂĚŝŶŐ;WǀƚͿ>ƚĚ SLFRS 12 includes all of the disclosures that were previously in ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͗ ƉƌŝŶĐŝƉĂůƉůĂĐĞŽĨďƵƐŝŶĞƐƐŝƐƐŝƚƵĂƚĞĚĂƚEŽ͘ϳϭͬϯ͕<ĂŵĂƚĂǁĂƩĞ WƌŝŶĐŝƉĂůĂĐƟǀŝƚǇŽĨƚŚĞŽŵƉĂŶǇǁĂƐƚŽƚƌĂĚĞƌĞƚĂŝůĨĂƐŚŝŽŶ ><^ϮϳƌĞůĂƚĞĚƚŽĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ĂƐǁĞůů Road, Rajagiriya. ŝƚĞŵƐ͕ĂŶĚƚŚĞŽƉĞƌĂƟŽŶƐŚĂǀĞŶŽƚǇĞƚĐŽŵŵĞŶĐĞĚ͘ ĂƐĂůůŽĨƚŚĞĚŝƐĐůŽƐƵƌĞƐƚŚĂƚǁĞƌĞƉƌĞǀŝŽƵƐůǇŝŶĐůƵĚĞĚŝŶ><^ dĂǆŽŶ^>&Z^&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ ϯϭĂŶĚ><^Ϯϴ͘dŚĞƐĞĚŝƐĐůŽƐƵƌĞƐƌĞůĂƚĞƚŽĂŶĞŶƟƚǇ͛ƐŝŶƚĞƌĞƐƚ KĚĞůWƌŽƉĞƌƟĞƐ;WǀƚͿ>ƚĚ͕͘ in subsidiaries, joint arrangements, associates and structured dŚĞ'ƌŽƵƉŝƐƐƵďũĞĐƚƚŽŝŶĐŽŵĞƚĂǆ͘dŚĞ'ƌŽƵƉƌĞĐŽŐŶŝǌĞĚ KĚĞůWƌŽƉĞƌƟĞƐ;WǀƚͿ>ŝŵŝƚĞĚŝƐĂůŝŵŝƚĞĚůŝĂďŝůŝƚǇĐŽŵƉĂŶǇ 1.3 Date of Authorization for issue ĞŶƟƟĞƐ͘dŚĞŶƵŵďĞƌŽĨŶĞǁĚŝƐĐůŽƐƵƌĞƐĂƌĞĂůƐŽƌĞƋƵŝƌĞĚ͕ďƵƚ ĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĨŽƌĐƵƌƌĞŶƚĂŶĚĚĞĨĞƌƌĞĚƚĂǆĞƐďĂƐĞĚŽŶ ŝŶĐŽƌƉŽƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞ ŚĂƐŶŽŝŵƉĂĐƚŽŶƚŚĞ'ƌŽƵƉ͛ƐͬŽŵƉĂŶǇ͛ƐĮŶĂŶĐŝĂůƉŽƐŝƟŽŶŽƌ ĞƐƟŵĂƚĞƐŽĨǁŚĞƚŚĞƌĂĚĚŝƟŽŶĂůƚĂǆĞƐǁŝůůďĞĚƵĞ͘tŚĞƌĞƚŚĞ and principle place of business of the Company is located at No. dŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨKĚĞůW>ĂŶĚ/ƚƐ^Ƶď- performance. ĮŶĂůƚĂǆŽƵƚĐŽŵĞŽĨƚŚĞƐĞŵĂƩĞƌƐŝƐĚŝīĞƌĞŶƚĨƌŽŵƚŚĞĂŵŽƵŶƚƐ ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚZĂũĂŐŝƌŝǇĂ͘ ƐŝĚŝĂƌŝĞƐĨŽƌƚŚĞǇĞĂƌĞŶĚĞĚϯϭDĂƌĐŚϮϬϭϰǁĞƌĞĂƵƚŚŽƌŝǌĞĚ ƚŚĂƚǁĞƌĞŝŶŝƟĂůůǇƌĞĐŽƌĚĞĚ͕ƐƵĐŚĚŝīĞƌĞŶĐĞƐǁŝůůŝŵƉĂĐƚƚŚĞ ĨŽƌŝƐƐƵĞŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂƌĞƐŽůƵƟŽŶŽĨƚŚĞĚŝƌĞĐƚŽƌƐŽŶ ^>&Z^ϭϯ&ĂŝƌsĂůƵĞDĞĂƐƵƌĞŵĞŶƚ income and deferred tax amounts in the period in which the Odel Lanka (Pvt) Ltd. 29May 2014. ĚĞƚĞƌŵŝŶĂƟŽŶŝƐŵĂĚĞ͘ Odel Lanka (Pvt) Limited is a limited liability company incorpo- SLFRS 13 establishes a single source of guidance under SLFRS for ƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨƚŚĞ all fair value measurements. SLFRS 13 does not change when ESTIMATES AND ASSUMPTIONS ŽŵƉĂŶǇŝƐůŽĐĂƚĞĚĂƚEŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝǇĂĂŶĚƚŚĞ 2. STATEMENT OF COMPLIANCE ĂŶĞŶƟƚǇŝƐƌĞƋƵŝƌĞĚƚŽƵƐĞĨĂŝƌǀĂůƵĞ͕ďƵƚƌĂƚŚĞƌƉƌŽǀŝĚĞƐŐƵŝĚ- ƉƌŝŶĐŝƉĂůƉůĂĐĞŽĨďƵƐŝŶĞƐƐŝƐƐŝƚƵĂƚĞĚĂƚϮϳϭ͕<ĂĚƵǁĞůĂZŽĂĚ͕ ance on how to measure fair value under SLFRS when fair value The Consolidated Financial Statements of the Group (Income The key assumptions concerning the future and other key dŚĂůĂŶŐĂŵĂ͕ĂƩĂƌĂŵƵůůĂ͘ ŝƐƌĞƋƵŝƌĞĚŽƌƉĞƌŵŝƩĞĚ͘hƐĞŽĨƉƌŝŶĐŝƉůĞƐŽĨŵĞĂƐƵƌĞŵĞŶƚŝŶ Statement, Statement of Comprehensive Income, Statement of ƐŽƵƌĐĞƐŽĨĞƐƟŵĂƟŽŶƵŶĐĞƌƚĂŝŶƚǇĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͕ƚŚĂƚ ƚŚŝƐƐƚĂŶĚĂƌĚƐĂƌĞĐƵƌƌĞŶƚůǇĞŶĐŽƵƌĂŐĞĚ͘WĞŶĚŝŶŐƚŚĞĐŽŵƉůĞƟŽŶ &ŝŶĂŶĐŝĂůWŽƐŝƟŽŶ͕^ƚĂƚĞŵĞŶƚŽĨŚĂŶŐĞƐŝŶƋƵŝƚǇ͕^ƚĂƚĞŵĞŶƚ ŚĂǀĞĂƐŝŐŶŝĮĐĂŶƚƌŝƐŬŽĨĐĂƵƐŝŶŐĂŵĂƚĞƌŝĂůĂĚũƵƐƚŵĞŶƚƚŽƚŚĞ KĚĞů/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐǇ^ĞƌǀŝĐĞƐ;WǀƚͿ>ƚĚ ŽĨĨƵůůƐƚƵĚǇŽĨƚŚĞƐĞƐƚĂŶĚĂƌĚƐ͕ƚŚĞĮŶĂŶĐŝĂůŝŵƉĂĐƚŝƐŶŽƚǇĞƚ ŽĨĂƐŚ&ůŽǁƐƚŽŐĞƚŚĞƌǁŝƚŚĐĐŽƵŶƟŶŐWŽůŝĐŝĞƐĂŶĚEŽƚĞƐͿĂƐ ĐĂƌƌǇŝŶŐĂŵŽƵŶƚƐŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐǁŝƚŚŝŶƚŚĞŶĞǆƚĮŶĂŶĐŝĂů KĚĞů/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐǇ^ĞƌǀŝĐĞƐ;WǀƚͿ>ƚĚŝƐĂůŝŵŝƚĞĚůŝ- ŬŶŽǁŶĂŶĚƌĞĂƐŽŶĂďůǇĞƐƟŵĂďůĞ͘ ǇĞĂƌ͕ĂƌĞĚĞƐĐƌŝďĞĚďĞůŽǁ͘dŚĞ'ƌŽƵƉďĂƐĞĚŝƚƐĂƐƐƵŵƉƟŽŶƐ ability company incorporated and domiciled in Sri Lanka. The at 31 March2014 are prepared in accordance with Sri Lanka ĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐ;^>&Z^ƐͿĂƐůĂŝĚĚŽǁŶďǇƚŚĞ/ŶƐƟƚƵƚĞŽĨ ĂŶĚĞƐƟŵĂƚĞƐ͕ŽŶƉĂƌĂŵĞƚĞƌƐĂǀĂŝůĂďůĞǁŚĞŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚ ƌĞŐŝƐƚĞƌĞĚŽĸĐĞĂŶĚƉƌŝŶĐŝƉůĞƉůĂĐĞŽĨďƵƐŝŶĞƐƐŽĨƚŚĞŽŵƉĂŶǇ Chartered Accountants of Sri Lanka. ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐǁĞƌĞƉƌĞƉĂƌĞĚ͘ǆŝƐƟŶŐĐŝƌĐƵŵƐƚĂŶĐĞƐĂŶĚ ŝƐůŽĐĂƚĞĚĂƚEŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚZĂũĂŐŝƌŝǇĂ͘ 2.2 BASIS OF CONSOLIDATION ĂƐƐƵŵƉƟŽŶƐĂďŽƵƚĨƵƚƵƌĞĚĞǀĞůŽƉŵĞŶƚƐ͕ŚŽǁĞǀĞƌ͕ŵĂǇĐŚĂŶŐĞ due to market changes or circumstances arising beyond the ^>/ŶƚĞƌŶĂƟŽŶĂů;WǀƚͿ>ƚĚ 2.1 BASIS OF PREPARATION AND MEASUREMENT dŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĐŽŵƉƌŝƐĞƚŚĞĮŶĂŶĐŝĂů ĐŽŶƚƌŽůŽĨƚŚĞ'ƌŽƵƉƐƵĐŚĐŚĂŶŐĞƐĂƌĞƌĞŇĞĐƚĞĚŝŶƚŚĞĂƐƐƵŵƉ- ^>/ŶƚĞƌŶĂƟŽŶĂů;WǀƚͿ>ƚĚŝƐĂůŝŵŝƚĞĚůŝĂďŝůŝƚǇĐŽŵƉĂŶǇŝŶĐŽƌ- statements of the Group and its subsidiaries as at 31 March 2014. ƟŽŶƐǁŚĞŶƚŚĞǇŽĐĐƵƌ͘ ƉŽƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨƚŚĞ dŚĞĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŚĂǀĞďĞĞŶƉƌĞƉĂƌĞĚŽŶ Company is located at No.38 Dickmens Road, Colombo 05, and ^ƵďƐŝĚŝĂƌŝĞƐĂƌĞĨƵůůǇĐŽŶƐŽůŝĚĂƚĞĚĨƌŽŵƚŚĞĚĂƚĞŽĨĂĐƋƵŝƐŝƟŽŶ͕ a historical cost basis, except for land and buildings and Finan- /ŵƉĂŝƌŵĞŶƚŽĨŝŶǀĞƐƚŵĞŶƚƐŝŶƐƵďƐŝĚŝĂƌŝĞƐŽƌĮŶĂŶĐŝĂůĂƐƐĞƚƐ the principal place of business is situated at P.O.Box 5, Export ďĞŝŶŐƚŚĞĚĂƚĞŽŶǁŚŝĐŚƚŚĞ'ƌŽƵƉŽďƚĂŝŶƐĐŽŶƚƌŽů͕ĂŶĚĐŽŶƟŶƵĞ cial Instruments that have been measured at fair value. The WƌŽĐĞƐƐŝŶŐŽŶĞ͕<ĂƚƵŶĂǇĂŬĞ͘ ƚŽďĞĐŽŶƐŽůŝĚĂƚĞĚƵŶƟůƚŚĞĚĂƚĞǁŚĞŶƐƵĐŚĐŽŶƚƌŽůĐĞĂƐĞƐ͘dŚĞ ƉƌĞƉĂƌĂƟŽŶĂŶĚƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞ dŚĞ'ƌŽƵƉĂŶĚƚŚĞŽŵƉĂŶǇĨŽůůŽǁƚŚĞŐƵŝĚĂŶĐĞŽĨ><^ϯϲ ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞƐƵďƐŝĚŝĂƌŝĞƐĂƌĞƉƌĞƉĂƌĞĚĨŽƌƚŚĞ in compliance with the Companies Act No.07 of 2007. ĂŶĚ><^ϯϵŽŶĚĞƚĞƌŵŝŶŝŶŐǁŚĞƚŚĞƌĂŶŝŶǀĞƐƚŵĞŶƚŽƌĂĮŶĂŶ- 'ƌĞĞŶĮĞůĚdƌĂĚŝŶŐ;WǀƚͿ>ƚĚ ƐĂŵĞƌĞƉŽƌƟŶŐƉĞƌŝŽĚĂƐƚŚĞƉĂƌĞŶƚĐŽŵƉĂŶǇ͕ƵƐŝŶŐĐŽŶƐŝƐƚĞŶƚ ĐŝĂůĂƐƐĞƚŝƐŝŵƉĂŝƌĞĚ͘dŚŝƐĚĞƚĞƌŵŝŶĂƟŽŶƌĞƋƵŝƌĞƐƐŝŐŶŝĮĐĂŶƚ 'ƌĞĞŶĮĞůĚdƌĂĚŝŶŐ;WǀƚͿ>ƚĚŝƐĂůŝŵŝƚĞĚůŝĂďŝůŝƚǇĐŽŵƉĂŶǇŝŶ- ĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐ͘ judgement. The Group and the Company evaluate, among ĐŽƌƉŽƌĂƚĞĚĂŶĚĚŽŵŝĐŝůĞĚŝŶ^ƌŝ>ĂŶŬĂ͘dŚĞƌĞŐŝƐƚĞƌĞĚŽĸĐĞ ŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƉƌĞƐĞŶƚĞĚŝŶ^ƌŝ>ĂŶŬĂŶ Rupees except when otherwise indicated. ŽƚŚĞƌĨĂĐƚŽƌƐ͕ƚŚĞĚƵƌĂƟŽŶĂŶĚĞǆƚĞŶƚƚŽǁŚŝĐŚƚŚĞĨĂŝƌǀĂůƵĞ ĂŶĚƚŚĞƉƌŝŶĐŝƉůĞƉůĂĐĞŽĨďƵƐŝŶĞƐƐŝƐƐŝƚƵĂƚĞĚĂƚϰϳϱͬϯϮ͕<ŽƩĞ ůůŝŶƚƌĂͲŐƌŽƵƉďĂůĂŶĐĞƐ͕ƚƌĂŶƐĂĐƟŽŶƐ͕ƵŶƌĞĂůŝǌĞĚŐĂŝŶƐĂŶĚ ŽĨĂŶŝŶǀĞƐƚŵĞŶƚŽƌĂĮŶĂŶĐŝĂůĂƐƐĞƚŝƐůĞƐƐƚŚĂŶŝƚƐĐŽƐƚĂŶĚ Road, Rajagiriya. ůŽƐƐĞƐƌĞƐƵůƟŶŐĨƌŽŵŝŶƚƌĂͲŐƌŽƵƉƚƌĂŶƐĂĐƟŽŶƐĂŶĚĚŝǀŝĚĞŶĚƐ ƚŚĞĮŶĂŶĐŝĂůŚĞĂůƚŚŽĨƚŚĞŶĞĂƌͲƚĞƌŵďƵƐŝŶĞƐƐŽƵƚůŽŽŬĨŽƌƚŚĞ 2.1.1 ^ƌŝ>ĂŶŬĂĐĐŽƵŶƟŶŐ^ƚĂŶĚĂƌĚƐĞīĞĐƟǀĞ are eliminated in full. ŝŶǀĞƐƚŵĞŶƚŽƌĂĮŶĂŶĐŝĂůĂƐƐĞƚ͕ŝŶĐůƵĚŝŶŐĨĂĐƚŽƌƐƐƵĐŚĂƐŝŶĚƵƐƚƌǇ from 01 January 2014 ĂŶĚƐĞĐƚŽƌƉĞƌĨŽƌŵĂŶĐĞ͕ĐŚĂŶŐĞƐŝŶƚĞĐŚŶŽůŽŐǇĂŶĚŽƉĞƌĂƟŽŶĂů 1.2 Principal Activities and Nature of Operations A change in the ownership interest of a subsidiary, without a ĂŶĚĮŶĂŶĐŝŶŐĐĂƐŚŇŽǁƐ͘ ůŽƐƐŽĨĐŽŶƚƌŽů͕ŝƐĂĐĐŽƵŶƚĞĚĨŽƌĂƐĂŶĞƋƵŝƚǇƚƌĂŶƐĂĐƟŽŶ͘ During the year, ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŐƌŽƵƉǁĞƌĞĂƐ ^>&Z^ϵͲ&ŝŶĂŶĐŝĂů/ŶƐƚƌƵŵĞŶƚƐ͗ůĂƐƐŝĮĐĂƟŽŶ and Measurement ZĞǀĂůƵĂƟŽŶŽĨƉƌŽƉĞƌƚǇ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚ ĨŽůůŽǁƐ͖ If the Group loses control over a subsidiary, it: ^>&Z^ϵ͕ĂƐŝƐƐƵĞĚƌĞŇĞĐƚƐƚŚĞĮƌƐƚƉŚĂƐĞŽĨǁŽƌŬŽŶƌĞƉůĂĐĞ- The Group measures land and buildings at revalued amounts WĂƌĞŶƚŽŵƉĂŶǇ ĞƌĞĐŽŐŶŝǌĞƐƚŚĞĂƐƐĞƚƐ;ŝŶĐůƵĚŝŶŐŐŽŽĚǁŝůůͿĂŶĚůŝĂďŝůŝƟĞƐ ŵĞŶƚŽĨ><^ϯϵĂŶĚĂƉƉůŝĞƐƚŽĐůĂƐƐŝĮĐĂƟŽŶĂŶĚŵĞĂƐƵƌĞŵĞŶƚ ͻ ǁŝƚŚĐŚĂŶŐĞƐŝŶĨĂŝƌǀĂůƵĞďĞŝŶŐƌĞĐŽŐŶŝǌĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞ- ƵƌŝŶŐƚŚĞǇĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶǇǁĞƌĞƚŽ of the subsidiary ŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƐĚĞĮŶĞĚŝŶ><^ϯϵ͘^>&Z^ϵ͕ ŚĞŶƐŝǀĞŝŶĐŽŵĞ͘dŚĞ'ƌŽƵƉĞŶŐĂŐĞĚĂŶŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĂƟŽŶ ĐĂƌƌǇŽƵƚĨĂƐŚŝŽŶƌĞƚĂŝůĂĐƟǀŝƟĞƐ͘ ĞƌĞĐŽŐŶŝǌĞƐƚŚĞĐĂƌƌǇŝŶŐĂŵŽƵŶƚŽĨĂŶǇŶŽŶͲĐŽŶƚƌŽůůŝŶŐ ǁĂƐŝƐƐƵĞĚŝŶϮϬϭϮĂŶĚĞīĞĐƟǀĞĚĂƚĞŽĨƚŚŝƐƐƚĂŶĚĂƌĚŚĂƐďĞĞŶ ͻ specialist to assess fair value of such assets as at 31 March 2013. ^ƵďƐŝĚŝĂƌŝĞƐ interest ĚĞĨĞƌƌĞĚƵŶƟůƚŚĞŶĞǁĞīĞĐƟǀĞĚĂƚĞŝƐŶŽƟĮĞĚ͘WĞŶĚŝŶŐƚŚĞ Land and buildings were valued by reference to market-based ĞƌĞĐŽŐŶŝǌĞƐƚŚĞĐƵŵƵůĂƟǀĞƚƌĂŶƐůĂƟŽŶĚŝīĞƌĞŶĐĞƐ͕ ĐŽŵƉůĞƟŽŶŽĨĨƵůůƐƚƵĚǇŽĨƚŚŝƐƐƚĂŶĚĂƌĚ͕ƚŚĞĮŶĂŶĐŝĂůŝŵƉĂĐƚŝƐ ͻ ĞǀŝĚĞŶĐĞ͕ƵƐŝŶŐĐŽŵƉĂƌĂďůĞƉƌŝĐĞƐĂĚũƵƐƚĞĚĨŽƌƐƉĞĐŝĮĐŵĂƌŬĞƚ KĚĞůƉƉĂƌĞůƐ;WǀƚͿ>ƚĚ͘ recorded in equity ŶŽƚǇĞƚŬŶŽǁŶĂŶĚƌĞĂƐŽŶĂďůǇĞƐƟŵĂďůĞ͘ ĨĂĐƚŽƌƐƐƵĐŚĂƐŶĂƚƵƌĞ͕ůŽĐĂƟŽŶĂŶĚĐŽŶĚŝƟŽŶŽĨƚŚĞƉƌŽƉĞƌƚǇ͘ ƵƌŝŶŐƚŚĞǇĞĂƌ͕ƚŚĞƉƌŝŶĐŝƉĂůĂĐƟǀŝƟĞƐŽĨƚŚĞŽŵƉĂŶǇǁĞƌĞƚŽ ͻ ZĞĐŽŐŶŝǌĞƐƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶƌĞĐĞŝǀĞĚ manufacture and supply of the Garments to the group. ͻ ZĞĐŽŐŶŝǌĞƐƚŚĞĨĂŝƌǀĂůƵĞŽĨĂŶǇŝŶǀĞƐƚŵĞŶƚƌĞƚĂŝŶĞĚ ͻ ZĞĐŽŐŶŝǌĞƐĂŶǇƐƵƌƉůƵƐŽƌĚĞĮĐŝƚŝŶƉƌŽĮƚŽƌůŽƐƐ ͻ ZĞĐůĂƐƐŝĮĞƐƚŚĞƉĂƌĞŶƚ͛ƐƐŚĂƌĞŽĨĐŽŵƉŽŶĞŶƚƐƉƌĞǀŝŽƵƐůǇ ƌĞĐŽŐŶŝƐĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞƚŽƉƌŽĮƚŽƌ loss or retained earnings, as appropriate. 60 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 61 ĞĮŶĞĚĞŶĞĮƚWůĂŶƐʹ'ƌĂƚƵŝƚǇ /ĨƚŚĞďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶŝƐĂĐŚŝĞǀĞĚŝŶƐƚĂŐĞƐ͕ƚŚĞƉƌĞǀŝŽƵƐůǇ ŽƌůŽƐƐŽŶĐŚĂŶŐĞŝŶĨĂŝƌǀĂůƵĞŝŶƚŚĞŝƚĞŵ;ŝ͘Ğ͕͘ƚŚĞƚƌĂŶƐůĂƟŽŶ 2.4.5 Taxes ŚĞůĚĞƋƵŝƚǇŝŶƚĞƌĞƐƚŝƐƌĞŵĞĂƐƵƌĞĚĂƚŝƚƐĂĐƋƵŝƐŝƟŽŶĚĂƚĞĨĂŝƌ ĚŝīĞƌĞŶĐĞƐŽŶŝƚĞŵƐǁŚŽƐĞĨĂŝƌǀĂůƵĞŐĂŝŶŽƌůŽƐƐŝƐƌĞĐŽŐŶŝƐĞĚ dŚĞĐŽƐƚŽĨŐƌĂƚƵŝƚǇŝƐĚĞƚĞƌŵŝŶĞĚƵƐŝŶŐĂĐƚƵĂƌŝĂůǀĂůƵĂƟŽŶƐ͘Ŷ ǀĂůƵĞĂŶĚĂŶǇƌĞƐƵůƟŶŐŐĂŝŶŽƌůŽƐƐŝƐƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĮƚŽƌůŽƐƐ͘ ŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ;K/ͿŽƌƉƌŽĮƚŽƌůŽƐƐĂƌĞĂůƐŽ CURRENT INCOME TAX ĂĐƚƵĂƌŝĂůǀĂůƵĂƟŽŶŝŶǀŽůǀĞƐŵĂŬŝŶŐǀĂƌŝŽƵƐĂƐƐƵŵƉƟŽŶƐǁŚŝĐŚ ŶǇĐŽŶƟŶŐĞŶƚĐŽŶƐŝĚĞƌĂƟŽŶƚŽďĞƚƌĂŶƐĨĞƌƌĞĚďǇƚŚĞĂĐƋƵŝƌĞƌ ƌĞĐŽŐŶŝƐĞĚŝŶK/ŽƌƉƌŽĮƚŽƌůŽƐƐ͕ƌĞƐƉĞĐƟǀĞůǇͿ͘ ŵĂǇĚŝīĞƌĨƌŽŵĂĐƚƵĂůĚĞǀĞůŽƉŵĞŶƚƐŝŶƚŚĞĨƵƚƵƌĞ͘dŚĞƐĞŝŶĐůƵĚĞ ǁŝůůďĞƌĞĐŽŐŶŝƐĞĚĂƚĨĂŝƌǀĂůƵĞĂƚƚŚĞĂĐƋƵŝƐŝƟŽŶĚĂƚĞ͘ŽŶƟŶŐĞŶƚ ƵƌƌĞŶƚŝŶĐŽŵĞƚĂǆĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĨŽƌƚŚĞĐƵƌƌĞŶƚƉĞƌŝŽĚ ƚŚĞĚĞƚĞƌŵŝŶĂƟŽŶŽĨƚŚĞĚŝƐĐŽƵŶƚƌĂƚĞ͕ĨƵƚƵƌĞƐĂůĂƌǇŝŶĐƌĞĂƐĞƐ͕ ĐŽŶƐŝĚĞƌĂƟŽŶǁŚŝĐŚŝƐĚĞĞŵĞĚƚŽďĞĂŶĂƐƐĞƚŽƌůŝĂďŝůŝƚǇƚŚĂƚŝƐ Ϯ͘ϰ͘ϯZĞǀĞŶƵĞƌĞĐŽŐŶŝƟŽŶ are measured at the amount expected to be recovered from or ƐƚĂīǁŝƚŚĚƌĂǁĂůƐ͕ĂŶĚŵŽƌƚĂůŝƚǇƌĂƚĞƐ͘ƵĞƚŽƚŚĞĐŽŵƉůĞǆŝƚǇ ĂĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚĂŶĚǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵ&ŝŶĂŶĐŝĂů ƉĂŝĚƚŽƚŚĞƚĂǆĂƟŽŶĂƵƚŚŽƌŝƟĞƐ͘dŚĞƚĂǆƌĂƚĞƐĂŶĚƚĂǆůĂǁƐƵƐĞĚ ŽĨƚŚĞǀĂůƵĂƟŽŶ͖ƚŚĞƵŶĚĞƌůǇŝŶŐĂƐƐƵŵƉƟŽŶƐĂŶĚŝƚƐůŽŶŐͲƚĞƌŵ /ŶƐƚƌƵŵĞŶƚƐ͗ZĞĐŽŐŶŝƟŽŶĂŶĚDĞĂƐƵƌĞŵĞŶƚ͕ŝƐŵĞĂƐƵƌĞĚĂƚĨĂŝƌ Revenue is recognised to the extent that it is probable that the to compute the amount are those that are enacted or substan- ŶĂƚƵƌĞ͕ƚŚĞĚĞĮŶĞĚďĞŶĞĮƚŽďůŝŐĂƟŽŶŝƐŚŝŐŚůǇƐĞŶƐŝƟǀĞƚŽ ǀĂůƵĞǁŝƚŚĐŚĂŶŐĞƐŝŶĨĂŝƌǀĂůƵĞĞŝƚŚĞƌŝŶƉƌŽĮƚŽƌůŽƐƐŽƌĂƐĂ ĞĐŽŶŽŵŝĐďĞŶĞĮƚƐǁŝůůŇŽǁƚŽƚŚĞ'ƌŽƵƉĂŶĚƚŚĞƌĞǀĞŶƵĞĐĂŶ ƟǀĞůǇĞŶĂĐƚĞĚ͕ĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͘ ĐŚĂŶŐĞƐŝŶƚŚĞƐĞĂƐƐƵŵƉƟŽŶƐ͘ůůĂƐƐƵŵƉƟŽŶƐĂƌĞƌĞǀŝĞǁĞĚĂƚ ĐŚĂŶŐĞƚŽŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ;K/Ϳ͘/ĨƚŚĞĐŽŶƟŶŐĞŶƚ be reliably measured, regardless of when the payment is being ĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞ͘ ĐŽŶƐŝĚĞƌĂƟŽŶŝƐŶŽƚǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵ͕ŝƚŝƐŵĞĂƐƵƌĞĚ ŵĂĚĞ͘ZĞǀĞŶƵĞŝƐŵĞĂƐƵƌĞĚĂƚƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶ ƵƌƌĞŶƚŝŶĐŽŵĞƚĂǆƌĞůĂƟŶŐƚŽŝƚĞŵƐƌĞĐŽŐŶŝƐĞĚĚŝƌĞĐƚůǇŝŶĞƋ- in accordance with the appropriate SLFRS. ƌĞĐĞŝǀĞĚŽƌƌĞĐĞŝǀĂďůĞ͕ƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚĐŽŶƚƌĂĐƚƵĂůůǇĚĞĮŶĞĚ uity is recognised in equity and not in the income statement. &ĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ terms of payment and excluding taxes or duty. The Group as- DĂŶĂŐĞŵĞŶƚƉĞƌŝŽĚŝĐĂůůǇĞǀĂůƵĂƚĞƐƉŽƐŝƟŽŶƐƚĂŬĞŶŝŶƚŚĞƚĂǆ ŽŶƟŶŐĞŶƚĐŽŶƐŝĚĞƌĂƟŽŶƚŚĂƚŝƐĐůĂƐƐŝĮĞĚĂƐĞƋƵŝƚǇŝƐŶŽƚƌĞŵĞĂ- ƐĞƐƐĞƐŝƚƐƌĞǀĞŶƵĞĂƌƌĂŶŐĞŵĞŶƚƐĂŐĂŝŶƐƚƐƉĞĐŝĮĐĐƌŝƚĞƌŝĂŝŶŽƌĚĞƌ ƌĞƚƵƌŶƐǁŝƚŚƌĞƐƉĞĐƚƚŽƐŝƚƵĂƟŽŶƐŝŶǁŚŝĐŚĂƉƉůŝĐĂďůĞƚĂǆƌĞŐƵ- tŚĞŶƚŚĞĨĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐ ƐƵƌĞĚĂŶĚƐƵďƐĞƋƵĞŶƚƐĞƩůĞŵĞŶƚŝƐŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞǁŝƚŚ ƚŽĚĞƚĞƌŵŝŶĞŝĨŝƚŝƐĂĐƟŶŐĂƐƉƌŝŶĐŝƉĂůŽƌĂŐĞŶƚ͘dŚĞ'ƌŽƵƉŚĂƐ ůĂƟŽŶƐĂƌĞƐƵďũĞĐƚƚŽŝŶƚĞƌƉƌĞƚĂƟŽŶĂŶĚĞƐƚĂďůŝƐŚĞƐƉƌŽǀŝƐŝŽŶƐ ƌĞĐŽƌĚĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĐĂŶŶŽƚďĞĚĞƌŝǀĞĚ ĐŚĂŶŐĞƐŝŶĨĂŝƌǀĂůƵĞĞŝƚŚĞƌŝŶĂƉƌŽĮƚŽƌůŽƐƐŽƌĂƐĂĐŚĂŶŐĞƚŽ ĐŽŶĐůƵĚĞĚƚŚĂƚŝƚŝƐĂĐƟŶŐĂƐĂƉƌŝŶĐŝƉĂůŝŶĂůůŽĨŝƚƐƌĞǀĞŶƵĞĂƌ- where appropriate. ĨƌŽŵĂĐƟǀĞŵĂƌŬĞƚƐ͕ƚŚĞŝƌĨĂŝƌǀĂůƵĞŝƐĚĞƚĞƌŵŝŶĞĚƵƐŝŶŐǀĂůƵĂ- ƚŚĞŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ;K/Ϳ͘/ĨƚŚĞĐŽŶƟŶŐĞŶƚĐŽŶƐŝĚ- ƌĂŶŐĞŵĞŶƚƐ͘dŚĞĨŽůůŽǁŝŶŐƐƉĞĐŝĮĐƌĞĐŽŐŶŝƟŽŶĐƌŝƚĞƌŝĂŵƵƐƚĂůƐŽ ƟŽŶƚĞĐŚŶŝƋƵĞƐŝŶĐůƵĚŝŶŐƚŚĞĚŝƐĐŽƵŶƚĞĚĐĂƐŚŇŽǁŵŽĚĞů͘dŚĞ ĞƌĂƟŽŶŝƐŶŽƚǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵ͕ŝƚŝƐŵĞĂƐƵƌĞĚŝŶĂĐ- be met before revenue is recognised: DEFERRED TAX inputs to these models are taken from observable markets where ĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĂƉƉƌŽƉƌŝĂƚĞ^>&Z^͘ŽŶƟŶŐĞŶƚĐŽŶƐŝĚĞƌĂƟŽŶ possible, but where this is not feasible, a degree of judgment ƚŚĂƚŝƐĐůĂƐƐŝĮĞĚĂƐĞƋƵŝƚǇŝƐŶŽƚƌĞŵĞĂƐƵƌĞĚĂŶĚƐƵďƐĞƋƵĞŶƚ ^ĂůĞŽĨŐŽŽĚƐ Deferred tax is provided using the liability method on tempo- is required in establishing fair values. The judgments include ƐĞƩůĞŵĞŶƚŝƐĂĐĐŽƵŶƚĞĚĨŽƌǁŝƚŚŝŶĞƋƵŝƚǇ͘ ZĞǀĞŶƵĞĨƌŽŵƚŚĞƐĂůĞŽĨŐŽŽĚƐŝƐƌĞĐŽŐŶŝƐĞĚǁŚĞŶƚŚĞƐŝŐŶŝĮ- ƌĂƌǇĚŝīĞƌĞŶĐĞƐĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞďĞƚǁĞĞŶƚŚĞƚĂǆďĂƐĞƐŽĨ ĐŽŶƐŝĚĞƌĂƟŽŶƐŽĨŝŶƉƵƚƐƐƵĐŚĂƐůŝƋƵŝĚŝƚǇƌŝƐŬ͕ĐƌĞĚŝƚƌŝƐŬĂŶĚ cant risks and rewards of ownership of the goods have passed ĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂŶĚƚŚĞŝƌĐĂƌƌǇŝŶŐĂŵŽƵŶƚƐĨŽƌĮŶĂŶĐŝĂů ǀŽůĂƟůŝƚǇ͘ŚĂŶŐĞƐŝŶĂƐƐƵŵƉƟŽŶƐĂďŽƵƚƚŚĞƐĞĨĂĐƚŽƌƐĐŽƵůĚ 'ŽŽĚǁŝůůŝƐŝŶŝƟĂůůǇŵĞĂƐƵƌĞĚĂƚĐŽƐƚ͕ďĞŝŶŐƚŚĞĞǆĐĞƐƐŽĨƚŚĞ to the buyer, usually on delivery of the goods. ƌĞƉŽƌƟŶŐƉƵƌƉŽƐĞƐ͘ ĂīĞĐƚƚŚĞƌĞƉŽƌƚĞĚĨĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ͘ ĂŐŐƌĞŐĂƚĞŽĨƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶƚƌĂŶƐĨĞƌƌĞĚĂŶĚƚŚĞĂŵŽƵŶƚ ƌĞĐŽŐŶŝƐĞĚĨŽƌŶŽŶͲĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚŽǀĞƌƚŚĞŶĞƚŝĚĞŶƟĮĂďůĞ >ŽǇĂůƚǇWŽŝŶƚƐ^ĐŚĞŵĞ ĞĨĞƌƌĞĚƚĂǆůŝĂďŝůŝƟĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚĨŽƌĂůůƚĂǆĂďůĞƚĞŵƉŽƌĂƌǇ USEFUL LIFE FOR PROPERTY, PLANT &EQUIPMENT AND ĂƐƐĞƚƐĂĐƋƵŝƌĞĚĂŶĚůŝĂďŝůŝƟĞƐĂƐƐƵŵĞĚ͘/ĨƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞ The Group operates a loyalty points programme, which allows ĚŝīĞƌĞŶĐĞƐ͕ĞǆĐĞƉƚ͗ INTANGIBLE ASSETS ŶĞƚĂƐƐĞƚƐĂĐƋƵŝƌĞĚŝƐŝŶĞǆĐĞƐƐŽĨƚŚĞĂŐŐƌĞŐĂƚĞĐŽŶƐŝĚĞƌĂƟŽŶ customers to accumulate points when they purchase products ƚƌĂŶƐĨĞƌƌĞĚ͕ƚŚĞŐĂŝŶŝƐƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĮƚŽƌůŽƐƐ͘ in the Group’s retail stores. The points can then be redeemed ͻ tŚĞŶƚŚĞĚĞĨĞƌƌĞĚƚĂǆůŝĂďŝůŝƚǇĂƌŝƐĞƐĨƌŽŵƚŚĞŝŶŝƟĂůƌĞĐŽŐŶŝ- The Group depreciates the property, plant &equipment and ĨŽƌĨƌĞĞƉƌŽĚƵĐƚƐ͘ŽŶƐŝĚĞƌĂƟŽŶƌĞĐĞŝǀĞĚŝƐĂůůŽĐĂƚĞĚďĞƚǁĞĞŶ ƟŽŶŽĨŐŽŽĚǁŝůůŽƌŽĨĂŶĂƐƐĞƚŽƌůŝĂďŝůŝƚǇŝŶĂƚƌĂŶƐĂĐƟŽŶƚŚĂƚŝƐ intangible assets, using the straight-line method, over their es- ŌĞƌŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͕ŐŽŽĚǁŝůůŝƐŵĞĂƐƵƌĞĚĂƚĐŽƐƚůĞƐƐĂŶǇ ƚŚĞƉƌŽĚƵĐƚƐƐŽůĚĂŶĚƚŚĞƉŽŝŶƚƐŝƐƐƵĞĚ͕ǁŝƚŚƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶ ŶŽƚĂďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶĂŶĚ͕ĂƚƚŚĞƟŵĞŽĨƚŚĞƚƌĂŶƐĂĐƟŽŶ͕ ƟŵĂƚĞĚƵƐĞĨƵůůŝǀĞƐĂŌĞƌƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚŽĨƚŚĞŝƌĞƐƟŵĂƚĞĚ accumulated impairment losses. For the purpose of impairment allocated to the points equal to their fair value. ĂīĞĐƚƐŶĞŝƚŚĞƌƚŚĞĂĐĐŽƵŶƟŶŐƉƌŽĮƚŶŽƌƚĂǆĂďůĞƉƌŽĮƚŽƌůŽƐƐ ƌĞƐŝĚƵĂůǀĂůƵĞƐ͘dŚĞĞƐƟŵĂƚĞĚƵƐĞĨƵůůŝĨĞƌĞŇĞĐƚƐŵĂŶĂŐĞŵĞŶƚ͛Ɛ ƚĞƐƟŶŐ͕ŐŽŽĚǁŝůůĂĐƋƵŝƌĞĚŝŶĂďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶŝƐ͕ĨƌŽŵƚŚĞ ĞƐƟŵĂƚĞŽĨƚŚĞƉĞƌŝŽĚƚŚĂƚƚŚĞ'ƌŽƵƉŝŶƚĞŶĚƐƚŽĚĞƌŝǀĞĨƵƚƵƌĞ ĂĐƋƵŝƐŝƟŽŶĚĂƚĞ͕ĂůůŽĐĂƚĞĚƚŽĞĂĐŚŽĨƚŚĞ'ƌŽƵƉ͛ƐĐĂƐŚͲŐĞŶĞƌ- &ĂŝƌǀĂůƵĞŽĨƚŚĞƉŽŝŶƚƐŝƐĚĞƚĞƌŵŝŶĞĚďǇĂƉƉůǇŝŶŐĂƐƚĂƟƐƟĐĂů ͻ /ŶƌĞƐƉĞĐƚŽĨƚĂǆĂďůĞƚĞŵƉŽƌĂƌǇĚŝīĞƌĞŶĐĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ ĞĐŽŶŽŵŝĐďĞŶĞĮƚƐĨƌŽŵƚŚĞƵƐĞŽĨƚŚĞ'ƌŽƵƉ͛ƐƉƌŽƉĞƌƚǇ͕ƉůĂŶƚ ĂƟŶŐƵŶŝƚƐƚŚĂƚĂƌĞĞǆƉĞĐƚĞĚƚŽďĞŶĞĮƚĨƌŽŵƚŚĞĐŽŵďŝŶĂƟŽŶ͕ analysis. The fair value of the points issued is deferred and investments in subsidiaries, associates and interests in joint ΘĞƋƵŝƉŵĞŶƚĂŶĚŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ͘dŚĞƌĞƐŝĚƵĂůǀĂůƵĞƌĞŇĞĐƚƐ ŝƌƌĞƐƉĞĐƟǀĞŽĨǁŚĞƚŚĞƌŽƚŚĞƌĂƐƐĞƚƐŽƌůŝĂďŝůŝƟĞƐŽĨƚŚĞĂĐƋƵŝƌĞĞ recognised as revenue when the points are redeemed or at the ǀĞŶƚƵƌĞƐ͕ǁŚĞƌĞƚŚĞƟŵŝŶŐŽĨƚŚĞƌĞǀĞƌƐĂůŽĨƚŚĞƚĞŵƉŽƌĂƌǇĚŝĨ- ŵĂŶĂŐĞŵĞŶƚ͛ƐĞƐƟŵĂƚĞĚĂŵŽƵŶƚƚŚĂƚƚŚĞ'ƌŽƵƉǁŽƵůĚĐƵƌ- are assigned to those units. expiry of points awarded. ferences can be controlled and it is probable that the temporary ƌĞŶƚůǇŽďƚĂŝŶĨƌŽŵƚŚĞĚŝƐƉŽƐĂůŽĨƚŚĞĂƐƐĞƚ͕ĂŌĞƌĚĞĚƵĐƟŶŐ ĚŝīĞƌĞŶĐĞƐǁŝůůŶŽƚƌĞǀĞƌƐĞŝŶƚŚĞĨŽƌĞƐĞĞĂďůĞĨƵƚƵƌĞ͘ ƚŚĞĞƐƟŵĂƚĞĚĐŽƐƚƐŽĨĚŝƐƉŽƐĂů͕ĂƐŝĨƚŚĞĂƐƐĞƚǁĞƌĞĂůƌĞĂĚǇŽĨ tŚĞƌĞŐŽŽĚǁŝůůŚĂƐďĞĞŶĂůůŽĐĂƚĞĚƚŽĂĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚ Interest income ƚŚĞĂŐĞĂŶĚŝŶƚŚĞĐŽŶĚŝƟŽŶĞǆƉĞĐƚĞĚĂƚƚŚĞĞŶĚŽĨŝƚƐƵƐĞĨƵů ĂŶĚƉĂƌƚŽĨƚŚĞŽƉĞƌĂƟŽŶǁŝƚŚŝŶƚŚĂƚƵŶŝƚŝƐĚŝƐƉŽƐĞĚŽĨ͕ƚŚĞ &ŽƌĂůůĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐŵĞĂƐƵƌĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚĂŶĚ ĞĨĞƌƌĞĚƚĂǆĂƐƐĞƚƐĂƌĞƌĞĐŽŐŶŝƐĞĚĨŽƌĂůůĚĞĚƵĐƟďůĞƚĞŵƉŽƌĂƌǇ life. Changes in the expected level of usage and technological ŐŽŽĚǁŝůůĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞŽƉĞƌĂƟŽŶĚŝƐƉŽƐĞĚŽĨŝƐŝŶĐůƵĚĞĚ ŝŶƚĞƌĞƐƚďĞĂƌŝŶŐĮŶĂŶĐŝĂůĂƐƐĞƚƐĐůĂƐƐŝĮĞĚĂƐĂǀĂŝůĂďůĞĨŽƌƐĂůĞ͕ŝŶ- ĚŝīĞƌĞŶĐĞƐ͕ĐĂƌƌǇĨŽƌǁĂƌĚŽĨƵŶƵƐĞĚƚĂǆĐƌĞĚŝƚƐĂŶĚƵŶƵƐĞĚƚĂǆ ĚĞǀĞůŽƉŵĞŶƚƐĐŽƵůĚĂīĞĐƚƚŚĞĞĐŽŶŽŵŝĐƐ͕ƵƐĞĨƵůůŝǀĞƐĂŶĚƚŚĞ ŝŶƚŚĞĐĂƌƌǇŝŶŐĂŵŽƵŶƚŽĨƚŚĞŽƉĞƌĂƟŽŶǁŚĞŶĚĞƚĞƌŵŝŶŝŶŐƚŚĞ ƚĞƌĞƐƚŝŶĐŽŵĞŽƌĞǆƉĞŶƐĞŝƐƌĞĐŽƌĚĞĚƵƐŝŶŐƚŚĞĞīĞĐƟǀĞŝŶƚĞƌĞƐƚ ůŽƐƐĞƐ͕ƚŽƚŚĞĞǆƚĞŶƚƚŚĂƚŝƚŝƐƉƌŽďĂďůĞƚŚĂƚƚĂǆĂďůĞƉƌŽĮƚǁŝůůďĞ ƌĞƐŝĚƵĂůǀĂůƵĞƐŽĨƚŚĞƐĞĂƐƐĞƚƐǁŚŝĐŚĐŽƵůĚƚŚĞŶĐŽŶƐĞƋƵĞŶƟĂůůǇ ŐĂŝŶŽƌůŽƐƐŽŶĚŝƐƉŽƐĂůŽĨƚŚĞŽƉĞƌĂƟŽŶ͘'ŽŽĚǁŝůůĚŝƐƉŽƐĞĚŽĨ ƌĂƚĞ;/ZͿ͕ǁŚŝĐŚŝƐƚŚĞƌĂƚĞƚŚĂƚĞǆĂĐƚůǇĚŝƐĐŽƵŶƚƐƚŚĞĞƐƟŵĂƚĞĚ ĂǀĂŝůĂďůĞĂŐĂŝŶƐƚǁŚŝĐŚƚŚĞĚĞĚƵĐƟďůĞƚĞŵƉŽƌĂƌǇĚŝīĞƌĞŶĐĞƐ͕ ŝŵƉĂĐƚĨƵƚƵƌĞĚĞƉƌĞĐŝĂƟŽŶĐŚĂƌŐĞƐ͘WƌŝŶĐŝƉĂůĚĞƉƌĞĐŝĂƟŽŶĂŶĚ ŝŶƚŚŝƐĐŝƌĐƵŵƐƚĂŶĐĞŝƐŵĞĂƐƵƌĞĚďĂƐĞĚŽŶƚŚĞƌĞůĂƟǀĞǀĂůƵĞƐŽĨ future cash payments or receipts through the expected life of the and the carry forward of unused tax credits and unused tax losses ĂŵŽƌƟǌĂƟŽŶƌĂƚĞƐƵƐĞĚĂƌĞĚŝƐĐƵƐƐĞĚƵŶĚĞƌEŽƚĞϮ͘ϰ͘ϳĂŶĚ ƚŚĞŽƉĞƌĂƟŽŶĚŝƐƉŽƐĞĚŽĨĂŶĚƚŚĞƉŽƌƟŽŶŽĨƚŚĞĐĂƐŚͲŐĞŶĞƌĂƟŶŐ ĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚŽƌĂƐŚŽƌƚĞƌƉĞƌŝŽĚ͕ǁŚĞƌĞĂƉƉƌŽƉƌŝĂƚĞ͕ƚŽ ĐĂŶďĞƵƟůŝƐĞĚ͕ĞǆĐĞƉƚ͗ Ϯ͘ϰ͘ϭϭƌĞƐƉĞĐƟǀĞůǇ͘ unit retained. ƚŚĞŶĞƚĐĂƌƌǇŝŶŐĂŵŽƵŶƚŽĨƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚŽƌůŝĂďŝůŝƚǇ͘/ŶƚĞƌĞƐƚ ŝŶĐŽŵĞŝƐŝŶĐůƵĚĞĚŝŶĮŶĂŶĐĞŝŶĐŽŵĞŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘ ͻ tŚĞŶƚŚĞĚĞĨĞƌƌĞĚƚĂǆĂƐƐĞƚƌĞůĂƟŶŐƚŽƚŚĞĚĞĚƵĐƟďůĞƚĞŵ- Ϯ͘ϰ͘Ϯ&ŽƌĞŝŐŶĐƵƌƌĞŶĐǇƚƌĂŶƐůĂƟŽŶ ƉŽƌĂƌǇĚŝīĞƌĞŶĐĞĂƌŝƐĞƐĨƌŽŵƚŚĞŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶŽĨĂŶĂƐƐĞƚŽƌ 2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Dividends ůŝĂďŝůŝƚǇŝŶĂƚƌĂŶƐĂĐƟŽŶƚŚĂƚŝƐŶŽƚĂďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶĂŶĚ͕ TŚĞ'ƌŽƵƉ͛ƐĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƉƌĞƐĞŶƚĞĚŝŶ Revenue is recognised when the Group’s right to receive the ĂƚƚŚĞƟŵĞŽĨƚŚĞƚƌĂŶƐĂĐƟŽŶ͕ĂīĞĐƚƐŶĞŝƚŚĞƌƚŚĞĂĐĐŽƵŶƟŶŐ dŚĞĨŽůůŽǁŝŶŐĂƌĞƚŚĞƐŝŐŶŝĮĐĂŶƚĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐĂƉƉůŝĞĚďǇ Sri Lankan Rupees, which is also the parent company’s and its payment is established. ƉƌŽĮƚŶŽƌƚĂǆĂďůĞƉƌŽĮƚŽƌůŽƐƐ͘ ƚŚĞ'ƌŽƵƉŝŶƉƌĞƉĂƌŝŶŐŝƚƐĐŽŶƐŽůŝĚĂƚĞĚĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͗ ƐƵďƐŝĚŝĂƌǇĐŽŵƉĂŶŝĞƐĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐǇ͘ ZĞŶƚĂůŝŶĐŽŵĞ ͻ /ŶƌĞƐƉĞĐƚŽĨĚĞĚƵĐƟďůĞƚĞŵƉŽƌĂƌǇĚŝīĞƌĞŶĐĞƐĂƐƐŽĐŝĂƚĞĚ Ϯ͘ϰ͘ϭƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶƐĂŶĚŐŽŽĚǁŝůů dƌĂŶƐĂĐƟŽŶƐĂŶĚďĂůĂŶĐĞƐ ZĞŶƚĂůŝŶĐŽŵĞĂƌŝƐŝŶŐĨƌŽŵŽƉĞƌĂƟŶŐůĞĂƐĞƐŽŶƐŚŽƉƐƉĂĐĞ with investments in subsidiaries, associates and interests in joint dƌĂŶƐĂĐƟŽŶƐŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐĂƌĞŝŶŝƟĂůůǇƌĞĐŽƌĚĞĚďǇƚŚĞ provided to tenants is accounted for on a straight-line basis ventures, deferred tax assets are recognised only to the extent ƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶƐĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌƵƐŝŶŐƚŚĞĂĐƋƵŝƐŝƟŽŶ 'ƌŽƵƉĞŶƟƟĞƐĂƚƚŚĞŝƌƌĞƐƉĞĐƟǀĞĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐǇƐƉŽƚƌĂƚĞ over the lease terms. ƚŚĂƚŝƚŝƐƉƌŽďĂďůĞƚŚĂƚƚŚĞƚĞŵƉŽƌĂƌǇĚŝīĞƌĞŶĐĞƐǁŝůůƌĞǀĞƌƐĞŝŶ ŵĞƚŚŽĚ͘dŚĞĐŽƐƚŽĨĂŶĂĐƋƵŝƐŝƟŽŶŝƐŵĞĂƐƵƌĞĚĂƐƚŚĞĂŐŐƌĞŐĂƚĞ ĂƚƚŚĞĚĂƚĞƚŚĞƚƌĂŶƐĂĐƟŽŶĮƌƐƚƋƵĂůŝĮĞƐĨŽƌƌĞĐŽŐŶŝƟŽŶ͘ ƚŚĞĨŽƌĞƐĞĞĂďůĞĨƵƚƵƌĞĂŶĚƚĂǆĂďůĞƉƌŽĮƚǁŝůůďĞĂǀĂŝůĂďůĞĂŐĂŝŶƐƚ ŽĨƚŚĞĐŽŶƐŝĚĞƌĂƟŽŶƚƌĂŶƐĨĞƌƌĞĚ͕ŵĞĂƐƵƌĞĚĂƚƚŚĞĂĐƋƵŝƐŝƟŽŶ Ϯ͘ϰ͘ϰǆƉĞŶĚŝƚƵƌĞƌĞĐŽŐŶŝƟŽŶ ǁŚŝĐŚƚŚĞƚĞŵƉŽƌĂƌǇĚŝīĞƌĞŶĐĞƐĐĂŶďĞƵƟůŝƐĞĚ͘ date fair value and the amount of any non-controlling interest in DŽŶĞƚĂƌǇĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĚĞŶŽŵŝŶĂƚĞĚŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐ ƚŚĞĂĐƋƵŝƌĞĞ͘&ŽƌĞĂĐŚďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶ͕ƚŚĞ'ƌŽƵƉĞůĞĐƚƐ ĂƌĞƌĞƚƌĂŶƐůĂƚĞĚĂƚƚŚĞĨƵŶĐƟŽŶĂůĐƵƌƌĞŶĐǇƐƉŽƚƌĂƚĞŽĨĞǆĐŚĂŶŐĞ a) ǆƉĞŶƐĞƐĂƌĞƌĞĐŽŐŶŝǌĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŽŶƚŚĞ The carrying amount of deferred tax assets is reviewed at each whether to measure the non-controlling interest in the acquiree ƌƵůŝŶŐĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͘ ďĂƐŝƐŽĨĂĚŝƌĞĐƚĂƐƐŽĐŝĂƟŽŶďĞƚǁĞĞŶƚŚĞĐŽƐƚŝŶĐƵƌƌĞĚĂŶĚƚŚĞ ƌĞƉŽƌƟŶŐĚĂƚĞĂŶĚƌĞĚƵĐĞĚƚŽƚŚĞĞǆƚĞŶƚƚŚĂƚŝƚŝƐŶŽůŽŶŐĞƌ ĂƚĨĂŝƌǀĂůƵĞŽƌĂƚƚŚĞƉƌŽƉŽƌƟŽŶĂƚĞƐŚĂƌĞŽĨƚŚĞĂĐƋƵŝƌĞĞĂƚ ĞĂƌŶŝŶŐŽĨƐƉĞĐŝĮĐŝƚĞŵƐŽĨŝŶĐŽŵĞ͘ůůĞǆƉĞŶĚŝƚƵƌĞŝŶĐƵƌƌĞĚŝŶ ƉƌŽďĂďůĞƚŚĂƚƐƵĸĐŝĞŶƚƚĂǆĂďůĞƉƌŽĮƚǁŝůůďĞĂǀĂŝůĂďůĞƚŽĂůůŽǁ ƚŚĞĨĂŝƌǀĂůƵĞŽƌĂƚƚŚĞƉƌŽƉŽƌƟŽŶĂƚĞƐŚĂƌĞŽĨƚŚĞĂĐƋƵŝƌĞĞ͛Ɛ ŝīĞƌĞŶĐĞƐĂƌŝƐŝŶŐŽŶƐĞƩůĞŵĞŶƚŽƌƚƌĂŶƐůĂƟŽŶŽĨŵŽŶĞƚĂƌǇ the running of the business and in maintaining the property, ĂůůŽƌƉĂƌƚŽĨƚŚĞĚĞĨĞƌƌĞĚƚĂǆĂƐƐĞƚƚŽďĞƵƟůŝƐĞĚ͘hŶƌĞĐŽŐŶŝƐĞĚ ŝĚĞŶƟĮĂďůĞŶĞƚĂƐƐĞƚƐ͘ĐƋƵŝƐŝƟŽŶͲƌĞůĂƚĞĚĐŽƐƚƐĂƌĞĞǆƉĞŶƐĞĚ ŝƚĞŵƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĮƚŽƌůŽƐƐ͘ ƉůĂŶƚΘĞƋƵŝƉŵĞŶƚŝŶĂƐƚĂƚĞŽĨĞĸĐŝĞŶĐǇŚĂƐďĞĞŶĐŚĂƌŐĞĚƚŽ ĚĞĨĞƌƌĞĚƚĂǆĂƐƐĞƚƐĂƌĞƌĞĂƐƐĞƐƐĞĚĂƚĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞĂŶĚĂƌĞ ĂƐŝŶĐƵƌƌĞĚĂŶĚŝŶĐůƵĚĞĚŝŶĂĚŵŝŶŝƐƚƌĂƟǀĞĞǆƉĞŶƐĞƐ͘ ŝŶĐŽŵĞŝŶĂƌƌŝǀŝŶŐĂƚƚŚĞƉƌŽĮƚĨŽƌƚŚĞǇĞĂƌ͘ recognised to the extent that it has become probable that future Non-monetary items that are measured in terms of historical ƚĂǆĂďůĞƉƌŽĮƚƐǁŝůůĂůůŽǁƚŚĞĚĞĨĞƌƌĞĚƚĂǆĂƐƐĞƚƚŽďĞƌĞĐŽǀĞƌĞĚ͘ tŚĞŶƚŚĞ'ƌŽƵƉĂĐƋƵŝƌĞƐĂďƵƐŝŶĞƐƐ͕ŝƚĂƐƐĞƐƐĞƐƚŚĞĮŶĂŶĐŝĂů cost in a foreign currency are translated using the exchange rates ďͿ &ŽƌƚŚĞƉƵƌƉŽƐĞŽĨƉƌĞƐĞŶƚĂƟŽŶŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ/ŶĐŽŵĞ ĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƐƐƵŵĞĚĨŽƌĂƉƉƌŽƉƌŝĂƚĞĐůĂƐƐŝĮĐĂƟŽŶĂŶĚ ĂƐĂƚƚŚĞĚĂƚĞƐŽĨƚŚĞŝŶŝƟĂůƚƌĂŶƐĂĐƟŽŶƐ͘EŽŶͲŵŽŶĞƚĂƌǇŝƚĞŵƐ ^ƚĂƚĞŵĞŶƚƚŚĞŝƌĞĐƚŽƌƐĂƌĞŽĨƚŚĞŽƉŝŶŝŽŶƚŚĂƚƚŚĞĨƵŶĐƟŽŶŽĨ ĞĨĞƌƌĞĚƚĂǆĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐĂƌĞŵĞĂƐƵƌĞĚĂƚƚŚĞƚĂǆ ĚĞƐŝŐŶĂƟŽŶŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĐŽŶƚƌĂĐƚƵĂůƚĞƌŵƐ͕ĞĐŽŶŽŵŝĐ measured at fair value in a foreign currency are translated using expenses method presents fairly the elements of the Company’s rates that are expected to apply in the year when the asset is ĐŝƌĐƵŵƐƚĂŶĐĞƐĂŶĚƉĞƌƟŶĞŶƚĐŽŶĚŝƟŽŶƐĂƐĂƚƚŚĞĂĐƋƵŝƐŝƟŽŶ the exchange rates at the date when the fair value is determined. ƉĞƌĨŽƌŵĂŶĐĞ͕ĂŶĚŚĞŶĐĞƐƵĐŚƉƌĞƐĞŶƚĂƟŽŶŵĞƚŚŽĚŝƐĂĚŽƉƚĞĚ͘ ƌĞĂůŝƐĞĚŽƌƚŚĞůŝĂďŝůŝƚǇŝƐƐĞƩůĞĚ͕ďĂƐĞĚŽŶƚĂǆƌĂƚĞƐ;ĂŶĚƚĂǆ ĚĂƚĞ͘dŚŝƐŝŶĐůƵĚĞƐƚŚĞƐĞƉĂƌĂƟŽŶŽĨĞŵďĞĚĚĞĚĚĞƌŝǀĂƟǀĞƐŝŶ dŚĞŐĂŝŶŽƌůŽƐƐĂƌŝƐŝŶŐŽŶƚƌĂŶƐůĂƟŽŶŽĨŶŽŶͲŵŽŶĞƚĂƌǇŵĞĂ- ůĂǁƐͿƚŚĂƚŚĂǀĞďĞĞŶĞŶĂĐƚĞĚŽƌƐƵďƐƚĂŶƟǀĞůǇĞŶĂĐƚĞĚĂƚƚŚĞ host contracts by the acquiree. ƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞŝƐƚƌĞĂƚĞĚŝŶůŝŶĞǁŝƚŚƚŚĞƌĞĐŽŐŶŝƟŽŶŽĨŐĂŝŶ ƌĞƉŽƌƟŶŐĚĂƚĞ͘

62 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 63 ĞĨĞƌƌĞĚƚĂǆƌĞůĂƟŶŐƚŽŝƚĞŵƐƌĞĐŽŐŶŝƐĞĚŽƵƚƐŝĚĞƉƌŽĮƚŽƌůŽƐƐ ƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞƌĞůĂƟŶŐƚŽƚŚĞƉĂƌƟĐƵůĂƌĂƐƐĞƚďĞŝŶŐƐŽůĚŝƐ Ϯ͘ϰ͘ϵŽƌƌŽǁŝŶŐĐŽƐƚƐ /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐǁŝƚŚŝŶĚĞĮŶŝƚĞƵƐĞĨƵůůŝǀĞƐĂƌĞŶŽƚĂŵŽƌƟƐĞĚ͕ ŝƐƌĞĐŽŐŶŝƐĞĚŽƵƚƐŝĚĞƉƌŽĮƚŽƌůŽƐƐ͘ĞĨĞƌƌĞĚƚĂǆŝƚĞŵƐĂƌĞƌĞĐ- transferred to retained earnings. but are tested for impairment annually, either individually or ŽŐŶŝƐĞĚŝŶĐŽƌƌĞůĂƟŽŶƚŽƚŚĞƵŶĚĞƌůǇŝŶŐƚƌĂŶƐĂĐƟŽŶĞŝƚŚĞƌŝŶ ŽƌƌŽǁŝŶŐĐŽƐƚƐĚŝƌĞĐƚůǇĂƩƌŝďƵƚĂďůĞƚŽƚŚĞĂĐƋƵŝƐŝƟŽŶ͕ĐŽŶ- ĂƚƚŚĞĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚůĞǀĞů͘dŚĞĂƐƐĞƐƐŵĞŶƚŽĨŝŶĚĞĮŶŝƚĞ other comprehensive income or directly in equity. ĞƉƌĞĐŝĂƟŽŶŝƐĐĂůĐƵůĂƚĞĚŽŶĂƐƚƌĂŝŐŚƚͲůŝŶĞďĂƐŝƐŽǀĞƌƚŚĞĞƐƟ- ƐƚƌƵĐƟŽŶŽƌƉƌŽĚƵĐƟŽŶŽĨĂŶĂƐƐĞƚƚŚĂƚŶĞĐĞƐƐĂƌŝůǇƚĂŬĞƐĂ ůŝĨĞŝƐƌĞǀŝĞǁĞĚĂŶŶƵĂůůǇƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌƚŚĞŝŶĚĞĮŶŝƚĞ mated useful lives of the assets as follows: ƐƵďƐƚĂŶƟĂůƉĞƌŝŽĚŽĨƟŵĞƚŽŐĞƚƌĞĂĚǇĨŽƌŝƚƐŝŶƚĞŶĚĞĚƵƐĞŽƌ ůŝĨĞĐŽŶƟŶƵĞƐƚŽďĞƐƵƉƉŽƌƚĂďůĞ͘/ĨŶŽƚ͕ƚŚĞĐŚĂŶŐĞŝŶƵƐĞĨƵůůŝĨĞ ĞĨĞƌƌĞĚƚĂǆĂƐƐĞƚƐĂŶĚĚĞĨĞƌƌĞĚƚĂǆůŝĂďŝůŝƟĞƐĂƌĞŽīƐĞƚŝĨĂůĞ- ƐĂůĞĂƌĞĐĂƉŝƚĂůŝƐĞĚĂƐƉĂƌƚŽĨƚŚĞĐŽƐƚŽĨƚŚĞƌĞƐƉĞĐƟǀĞĂƐƐĞƚƐ͘ ĨƌŽŵŝŶĚĞĮŶŝƚĞƚŽĮŶŝƚĞŝƐŵĂĚĞŽŶĂƉƌŽƐƉĞĐƟǀĞďĂƐŝƐ͘'ĂŝŶƐ ŐĂůůǇĞŶĨŽƌĐĞĂďůĞƌŝŐŚƚĞǆŝƐƚƐƚŽƐĞƚŽīĐƵƌƌĞŶƚƚĂǆĂƐƐĞƚƐĂŐĂŝŶƐƚ ͻ Buildings Over 40 Years All other borrowing costs are expensed in the period they occur. ŽƌůŽƐƐĞƐĂƌŝƐŝŶŐĨƌŽŵĚĞƌĞĐŽŐŶŝƟŽŶŽĨĂŶŝŶƚĂŶŐŝďůĞĂƐƐĞƚĂƌĞ ĐƵƌƌĞŶƚŝŶĐŽŵĞƚĂǆůŝĂďŝůŝƟĞƐĂŶĚƚŚĞĚĞĨĞƌƌĞĚƚĂǆĞƐƌĞůĂƚĞƚŽƚŚĞ ͻ Lease hold buildings Over the lease period ŽƌƌŽǁŝŶŐĐŽƐƚƐĐŽŶƐŝƐƚŽĨŝŶƚĞƌĞƐƚĂŶĚŽƚŚĞƌĐŽƐƚƐƚŚĂƚĂŶĞŶƟƚǇ ŵĞĂƐƵƌĞĚĂƐƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞŶĞƚĚŝƐƉŽƐĂůƉƌŽĐĞĞĚƐ ƐĂŵĞƚĂǆĂďůĞĞŶƟƚǇĂŶĚƚŚĞƐĂŵĞƚĂǆĂƟŽŶĂƵƚŚŽƌŝƚǇ͘ ͻ Equipment Over 10 Years ŝŶĐƵƌƐŝŶĐŽŶŶĞĐƟŽŶǁŝƚŚƚŚĞďŽƌƌŽǁŝŶŐŽĨĨƵŶĚƐ͘ and the carrying amount of the asset and are recognised in the ͻ &ŝǆƚƵƌĞƐʹĂŝƌĐŽŶĚŝƟŽŶ KǀĞƌϭϬzĞĂƌƐ income statement when the asset is derecognised. Ϯ͘ϰ͘ϲ^ĂůĞƐƚĂǆ ͻ Fixtures – other Over 10 Years Ϯ͘ϰ͘ϭϬ /ŶǀĞƐƚŵĞŶƚWƌŽƉĞƌƟĞƐ ͻ Furniture Over 10 Years Ϯ͘ϰ͘ϭϮ&ŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐͶŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶĂŶĚ Revenues, expenses and assets are recognised net of the amount ͻ KĸĐĞƋƵŝƉŵĞŶƚʹĐŽŵƉƵƚĞƌ KǀĞƌϬϱzĞĂƌƐ /ŶǀĞƐƚŵĞŶƚƉƌŽƉĞƌƟĞƐĂƌĞŵĞĂƐƵƌĞĚŝŶŝƟĂůůǇĂƚĐŽƐƚ͕ŝŶĐůƵĚŝŶŐ ƐƵďƐĞƋƵĞŶƚŵĞĂƐƵƌĞŵĞŶƚ of sales tax, except: ͻ KĸĐĞƋƵŝƉŵĞŶƚʹŽƚŚĞƌ KǀĞƌϮϬzĞĂƌƐ ƚƌĂŶƐĂĐƟŽŶĐŽƐƚƐ͘^ƵďƐĞƋƵĞŶƚƚŽŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͕ŝŶǀĞƐƚŵĞŶƚ ͻ ^ŚŽƉĮƫŶŐƐͲĮǆƚƵƌĞƐ KǀĞƌϭϬzĞĂƌƐ ƉƌŽƉĞƌƟĞƐĂƌĞƐƚĂƚĞĚĂƚĨĂŝƌǀĂůƵĞ͕ǁŚŝĐŚƌĞŇĞĐƚƐŵĂƌŬĞƚĐŽŶĚŝ- i) &ŝŶĂŶĐŝĂůĂƐƐĞƚƐ ͻ Where the sales tax incurred on a purchase of assets or ͻ ^ŚŽƉĮƫŶŐƐͲŵŽďŝůĞƐ KǀĞƌϭϬzĞĂƌƐ ƟŽŶƐĂƚƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞ͘'ĂŝŶƐŽƌůŽƐƐĞƐĂƌŝƐŝŶŐĨƌŽŵĐŚĂŶŐĞƐ ƐĞƌǀŝĐĞƐŝƐŶŽƚƌĞĐŽǀĞƌĂďůĞĨƌŽŵƚŚĞƚĂǆĂƟŽŶĂƵƚŚŽƌŝƚǇ͕ŝŶǁŚŝĐŚ ͻ Motor vehicles Over 05 Years ŝŶƚŚĞĨĂŝƌǀĂůƵĞƐŽĨŝŶǀĞƐƚŵĞŶƚƉƌŽƉĞƌƟĞƐĂƌĞŝŶĐůƵĚĞĚŝŶƚŚĞ INITIAL RECOGNITION AND MEASUREMENT ĐĂƐĞƚŚĞƐĂůĞƐƚĂǆŝƐƌĞĐŽŐŶŝƐĞĚĂƐƉĂƌƚŽĨƚŚĞĐŽƐƚŽĨĂĐƋƵŝƐŝƟŽŶ ͻ DŽƚŽƌǀĞŚŝĐůĞƐʹĮŶĂŶĐĞůĞĂƐĞ KǀĞƌƚŚĞůĞĂƐĞƉĞƌŝŽĚ income statement in the period in which they arise. Fair values of the asset or as part of the expense item as applicable. ŶŝƚĞŵŽĨƉƌŽƉĞƌƚǇ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĂŶĚĂŶǇƐŝŐŶŝĮĐĂŶƚƉĂƌƚ are evaluated annually by an accredited external, independent &ŝŶĂŶĐŝĂůĂƐƐĞƚƐǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵĂƌĞĐůĂƐƐŝĮĞĚĂƐ ŝŶŝƟĂůůǇƌĞĐŽŐŶŝƐĞĚŝƐĚĞƌĞĐŽŐŶŝƐĞĚƵƉŽŶĚŝƐƉŽƐĂůŽƌǁŚĞŶŶŽ ǀĂůƵĞƌ͕ĂƉƉůǇŝŶŐĂǀĂůƵĂƟŽŶŵŽĚĞůƌĞĐŽŵŵĞŶĚĞĚďǇƚŚĞ/ŶƚĞƌ- ĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͕ůŽĂŶƐĂŶĚ ͻ Receivables and payables are stated with the amount of ĨƵƚƵƌĞĞĐŽŶŽŵŝĐďĞŶĞĮƚƐĂƌĞĞǆƉĞĐƚĞĚĨƌŽŵŝƚƐƵƐĞŽƌĚŝƐƉŽƐĂů͘ ŶĂƟŽŶĂůsĂůƵĂƟŽŶ^ƚĂŶĚĂƌĚƐŽŵŵŝƩĞĞ͘ receivables, held-to-maturity investments, available-for-sale sales tax included. ŶǇŐĂŝŶŽƌůŽƐƐĂƌŝƐŝŶŐŽŶĚĞƌĞĐŽŐŶŝƟŽŶŽĨƚŚĞĂƐƐĞƚ;ĐĂůĐƵůĂƚĞĚ ĮŶĂŶĐŝĂůĂƐƐĞƚƐ͕ŽƌĂƐĚĞƌŝǀĂƟǀĞƐĚĞƐŝŐŶĂƚĞĚĂƐŚĞĚŐŝŶŐŝŶƐƚƌƵ- ĂƐƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞŶĞƚĚŝƐƉŽƐĂůƉƌŽĐĞĞĚƐĂŶĚƚŚĞĐĂƌ- /ŶǀĞƐƚŵĞŶƚƉƌŽƉĞƌƟĞƐĂƌĞĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶĞŝƚŚĞƌƚŚĞǇŚĂǀĞ ŵĞŶƚƐŝŶĂŶĞīĞĐƟǀĞŚĞĚŐĞ͕ĂƐĂƉƉƌŽƉƌŝĂƚĞ͘dŚĞ'ƌŽƵƉĚĞƚĞƌ- The net amount of sales tax recoverable from, or payable to, the rying amount of the asset) is included in the income statement been disposed of or when the investment property is perma- ŵŝŶĞƐƚŚĞĐůĂƐƐŝĮĐĂƟŽŶŽĨŝƚƐĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƚŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͘ ƚĂǆĂƟŽŶĂƵƚŚŽƌŝƚǇŝƐŝŶĐůƵĚĞĚĂƐƉĂƌƚŽĨƌĞĐĞŝǀĂďůĞƐŽƌƉĂǇĂďůĞƐ when the asset is derecognised. ŶĞŶƚůǇǁŝƚŚĚƌĂǁŶĨƌŽŵƵƐĞĂŶĚŶŽĨƵƚƵƌĞĞĐŽŶŽŵŝĐďĞŶĞĮƚ ŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶ͘ ŝƐĞǆƉĞĐƚĞĚĨƌŽŵŝƚƐĚŝƐƉŽƐĂů͘dŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞŶĞƚ ůůĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶŝƟĂůůǇĂƚĨĂŝƌǀĂůƵĞƉůƵƐƚƌĂŶƐ- The assets’ residual values, useful lives and methods of depre- disposal proceeds and the carrying amount of the asset is rec- ĂĐƟŽŶĐŽƐƚ͕ĞǆĐĞƉƚŝŶƚŚĞĐĂƐĞŽĨĂƐƐĞƚƐƌĞĐŽƌĚĞĚĂƚĨĂŝƌǀĂůƵĞ Ϯ͘ϰ͘ϳWƌŽƉĞƌƚǇ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚ ĐŝĂƟŽŶĂƌĞƌĞǀŝĞǁĞĚĂƚĞĂĐŚĮŶĂŶĐŝĂůǇĞĂƌĞŶĚĂŶĚĂĚũƵƐƚĞĚ ŽŐŶŝƐĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŝŶƚŚĞƉĞƌŝŽĚŽĨĚĞƌĞĐŽŐŶŝƟŽŶ͘ ƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͕ĚŝƌĞĐƚůǇĂƩƌŝďƵƚĂďůĞƚƌĂŶƐĂĐƟŽŶĐŽƐƚƐ͘ ƉƌŽƐƉĞĐƟǀĞůǇ͕ŝĨĂƉƉƌŽƉƌŝĂƚĞ͘ Property, plant and equipment is stated at cost, net of accumu- Transfers are made to or from investment property only when WƵƌĐŚĂƐĞƐŽƌƐĂůĞƐŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐƚŚĂƚƌĞƋƵŝƌĞĚĞůŝǀĞƌǇŽĨĂƐ- ůĂƚĞĚĚĞƉƌĞĐŝĂƟŽŶĂŶĚͬŽƌĂĐĐƵŵƵůĂƚĞĚŝŵƉĂŝƌŵĞŶƚůŽƐƐĞƐ͕ŝĨĂŶǇ͘ 2.4.8 Leases there is a change in use. For a transfer from investment property ƐĞƚƐǁŝƚŚŝŶĂƟŵĞĨƌĂŵĞĞƐƚĂďůŝƐŚĞĚďǇƌĞŐƵůĂƟŽŶŽƌĐŽŶǀĞŶƟŽŶ Such cost includes the cost of replacing component parts of the to owner-occupied property, the deemed cost for subsequent in the marketplace (regular way trades) are recognised on the property, plant and equipment and borrowing costs for long- dŚĞĚĞƚĞƌŵŝŶĂƟŽŶŽĨǁŚĞƚŚĞƌĂŶĂƌƌĂŶŐĞŵĞŶƚŝƐ͕ŽƌĐŽŶƚĂŝŶƐ͕ ĂĐĐŽƵŶƟŶŐŝƐƚŚĞĨĂŝƌǀĂůƵĞĂƚƚŚĞĚĂƚĞŽĨĐŚĂŶŐĞ͘/ĨŽǁŶĞƌͲ trade date, i.e., the date that the Group commits to purchase ƚĞƌŵĐŽŶƐƚƌƵĐƟŽŶƉƌŽũĞĐƚƐŝĨƚŚĞƌĞĐŽŐŶŝƟŽŶĐƌŝƚĞƌŝĂĂƌĞŵĞƚ͘ a lease is based on the substance of the arrangement at the occupied property becomes an investment property, the Group or sell the asset. ŝŶĐĞƉƟŽŶĚĂƚĞ͕ǁŚĞƚŚĞƌĨƵůĮůŵĞŶƚŽĨƚŚĞĂƌƌĂŶŐĞŵĞŶƚŝƐĚĞƉĞŶ- accounts for such property in accordance with the policy stated tŚĞŶƐŝŐŶŝĮĐĂŶƚƉĂƌƚƐŽĨƉƌŽƉĞƌƚǇ͕ƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĂƌĞ ĚĞŶƚŽŶƚŚĞƵƐĞŽĨĂƐƉĞĐŝĮĐĂƐƐĞƚŽƌĂƐƐĞƚƐŽƌƚŚĞĂƌƌĂŶŐĞŵĞŶƚ under property, plant and equipment up to the date of change. dŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůĂƐƐĞƚƐŝŶĐůƵĚĞĐĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐ- required to be replaced at intervals, the Group derecognises the conveys a right to use the asset, even if that right is not explicitly ŝƚƐ͕ƚƌĂĚĞĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ͕ƋƵŽƚĞĚĂŶĚƵŶƋƵŽƚĞĚĮŶĂŶĐŝĂů replaced part, and recognises the new part with its own associ- ƐƉĞĐŝĮĞĚŝŶĂŶĂƌƌĂŶŐĞŵĞŶƚ͘ instruments. ĂƚĞĚƵƐĞĨƵůůŝĨĞĂŶĚĚĞƉƌĞĐŝĂƟŽŶ͘>ŝŬĞǁŝƐĞ͕ǁŚĞŶĂŵĂũŽƌŝŶƐƉĞĐ- Ϯ͘ϰ͘ϭϭ/ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ ƟŽŶŝƐƉĞƌĨŽƌŵĞĚ͕ŝƚƐĐŽƐƚŝƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞĐĂƌƌǇŝŶŐĂŵŽƵŶƚ GROUP AS A LESSEE SUBSEQUENT MEASUREMENT ŽĨƚŚĞƉůĂŶƚĂŶĚĞƋƵŝƉŵĞŶƚĂƐĂƌĞƉůĂĐĞŵĞŶƚŝĨƚŚĞƌĞĐŽŐŶŝƟŽŶ /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐĂĐƋƵŝƌĞĚƐĞƉĂƌĂƚĞůǇĂƌĞŵĞĂƐƵƌĞĚŽŶŝŶŝƟĂů ĐƌŝƚĞƌŝĂĂƌĞƐĂƟƐĮĞĚ͘ůůŽƚŚĞƌƌĞƉĂŝƌĂŶĚŵĂŝŶƚĞŶĂŶĐĞĐŽƐƚƐĂƌĞ &ŝŶĂŶĐĞůĞĂƐĞƐǁŚŝĐŚƚƌĂŶƐĨĞƌƚŽƚŚĞ'ƌŽƵƉƐƵďƐƚĂŶƟĂůůǇĂůůƚŚĞ ƌĞĐŽŐŶŝƟŽŶĂƚĐŽƐƚ͘dŚĞĐŽƐƚŽĨŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐĂĐƋƵŝƌĞĚŝŶ dŚĞƐƵďƐĞƋƵĞŶƚŵĞĂƐƵƌĞŵĞŶƚŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐĚĞƉĞŶĚƐŽŶ recognised in the income statement as incurred. ƌŝƐŬƐĂŶĚďĞŶĞĮƚƐŝŶĐŝĚĞŶƚĂůƚŽŽǁŶĞƌƐŚŝƉŽĨƚŚĞůĞĂƐĞĚŝƚĞŵ͕ ĂďƵƐŝŶĞƐƐĐŽŵďŝŶĂƟŽŶŝƐƚŚĞŝƌĨĂŝƌǀĂůƵĞĂƐĂƚƚŚĞĚĂƚĞŽĨ ƚŚĞŝƌĐůĂƐƐŝĮĐĂƟŽŶĂƐĨŽůůŽǁƐ͗ are capitalised at the commencement of the lease at the fair ĂĐƋƵŝƐŝƟŽŶ͘&ŽůůŽǁŝŶŐŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͕ŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐĂƌĞ The present value of the expected cost for the decommissioning value of the leased property or, if lower, at the present value of ĐĂƌƌŝĞĚĂƚĐŽƐƚůĞƐƐĂĐĐƵŵƵůĂƚĞĚĂŵŽƌƟƐĂƟŽŶĂŶĚĂĐĐƵŵƵůĂƚĞĚ &ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ ŽĨƚŚĞĂƐƐĞƚĂŌĞƌŝƚƐƵƐĞŝƐŝŶĐůƵĚĞĚŝŶƚŚĞĐŽƐƚŽĨƚŚĞƌĞƐƉĞĐƟǀĞ ƚŚĞŵŝŶŝŵƵŵůĞĂƐĞƉĂǇŵĞŶƚƐ͘>ĞĂƐĞƉĂǇŵĞŶƚƐĂƌĞĂƉƉŽƌƟŽŶĞĚ impairment losses, if any. Internally generated intangible assets, ĂƐƐĞƚŝĨƚŚĞƌĞĐŽŐŶŝƟŽŶĐƌŝƚĞƌŝĂĨŽƌĂƉƌŽǀŝƐŝŽŶĂƌĞŵĞƚ͘ ďĞƚǁĞĞŶĮŶĂŶĐĞĐŚĂƌŐĞƐĂŶĚƌĞĚƵĐƟŽŶŽĨƚŚĞůĞĂƐĞůŝĂďŝůŝƚǇƐŽĂƐ excluding capitalised development costs, are not capitalised and &ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐŝŶĐůƵĚĞƐĮŶĂŶ- to achieve a constant rate of interest on the remaining balance ĞǆƉĞŶĚŝƚƵƌĞŝƐƌĞŇĞĐƚĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŝŶƚŚĞǇĞĂƌŝŶ ĐŝĂůĂƐƐĞƚƐŚĞůĚĨŽƌƚƌĂĚŝŶŐĂŶĚĮŶĂŶĐŝĂůĂƐƐĞƚƐĚĞƐŝŐŶĂƚĞĚƵƉŽŶ Land and buildings are measured at fair value less accumulated ŽĨƚŚĞůŝĂďŝůŝƚǇ͘&ŝŶĂŶĐĞĐŚĂƌŐĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶĮŶĂŶĐĞĐŽƐƚƐ which the expenditure is incurred. ŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͘&ŝŶĂŶĐŝĂů ĚĞƉƌĞĐŝĂƟŽŶŽŶďƵŝůĚŝŶŐƐĂŶĚŝŵƉĂŝƌŵĞŶƚůŽƐƐĞƐƌĞĐŽŐŶŝƐĞĚ in the income statement. ĂƐƐĞƚƐĂƌĞĐůĂƐƐŝĮĞĚĂƐŚĞůĚĨŽƌƚƌĂĚŝŶŐŝĨƚŚĞǇĂƌĞĂĐƋƵŝƌĞĚĨŽƌ ĂŌĞƌƚŚĞĚĂƚĞŽĨƚŚĞƌĞǀĂůƵĂƟŽŶ͘sĂůƵĂƟŽŶƐĂƌĞƉĞƌĨŽƌŵĞĚǁŝƚŚ dŚĞƵƐĞĨƵůůŝǀĞƐŽĨŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐĂƌĞĂƐƐĞƐƐĞĚĂƐĞŝƚŚĞƌĮŶŝƚĞ the purpose of selling or repurchasing in the near term. This ƐƵĸĐŝĞŶƚĨƌĞƋƵĞŶĐǇƚŽĞŶƐƵƌĞƚŚĂƚƚŚĞĨĂŝƌǀĂůƵĞŽĨĂƌĞǀĂůƵĞĚ A leased asset is depreciated over the useful life of the asset. ŽƌŝŶĚĞĮŶŝƚĞ͘ ĐĂƚĞŐŽƌǇŝŶĐůƵĚĞƐĚĞƌŝǀĂƟǀĞĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĞŶƚĞƌĞĚŝŶƚŽ ĂƐƐĞƚĚŽĞƐŶŽƚĚŝīĞƌŵĂƚĞƌŝĂůůǇĨƌŽŵŝƚƐĐĂƌƌǇŝŶŐĂŵŽƵŶƚ͘ ,ŽǁĞǀĞƌ͕ŝĨƚŚĞƌĞŝƐŶŽƌĞĂƐŽŶĂďůĞĐĞƌƚĂŝŶƚǇƚŚĂƚƚŚĞ'ƌŽƵƉ by the Group that are not designated as hedging instruments will obtain ownership by the end of the lease term, the asset is /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐǁŝƚŚĮŶŝƚĞůŝǀĞƐĂƌĞĂŵŽƌƟƐĞĚŽǀĞƌƚŚĞŝƌƵƐĞĨƵů ŝŶŚĞĚŐĞƌĞůĂƟŽŶƐŚŝƉƐĂƐĚĞĮŶĞĚďǇ><^ϯϵ͘ĞƌŝǀĂƟǀĞƐ͕ŝŶ- ƌĞǀĂůƵĂƟŽŶƐƵƌƉůƵƐŝƐƌĞĐŽŐŶŝƐĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶ- ĚĞƉƌĞĐŝĂƚĞĚŽǀĞƌƚŚĞƐŚŽƌƚĞƌŽĨƚŚĞĞƐƟŵĂƚĞĚƵƐĞĨƵůůŝĨĞŽĨƚŚĞ economic lives and assessed for impairmentwhenever there is ĐůƵĚŝŶŐƐĞƉĂƌĂƚĞĚĞŵďĞĚĚĞĚĚĞƌŝǀĂƟǀĞƐĂƌĞĂůƐŽĐůĂƐƐŝĮĞĚĂƐ ĐŽŵĞĂŶĚĂĐĐƵŵƵůĂƚĞĚŝŶĞƋƵŝƚǇŝŶƚŚĞĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞ͕ asset and the lease term. ĂŶŝŶĚŝĐĂƟŽŶƚŚĂƚƚŚĞŝŶƚĂŶŐŝďůĞĂƐƐĞƚŵĂǇďĞŝŵƉĂŝƌĞĚ͘dŚĞ ŚĞůĚĨŽƌƚƌĂĚŝŶŐƵŶůĞƐƐƚŚĞǇĂƌĞĚĞƐŝŐŶĂƚĞĚĂƐĞīĞĐƟǀĞŚĞĚŐŝŶŐ ĞǆĐĞƉƚƚŽƚŚĞĞǆƚĞŶƚƚŚĂƚŝƚƌĞǀĞƌƐĞƐĂƌĞǀĂůƵĂƟŽŶĚĞĐƌĞĂƐĞŽĨƚŚĞ ĂŵŽƌƟƐĂƟŽŶƉĞƌŝŽĚĂŶĚƚŚĞĂŵŽƌƟƐĂƟŽŶŵĞƚŚŽĚĨŽƌĂŶŝŶ- instruments. same asset previously recognised in the income statement, in Operating lease payments are recognised as an operating ƚĂŶŐŝďůĞĂƐƐĞƚǁŝƚŚĂĮŶŝƚĞƵƐĞĨƵůůŝĨĞŝƐƌĞǀŝĞǁĞĚĂƚůĞĂƐƚĂƚƚŚĞ which case the increase is recognised in the income statement. A expense in the income statement on a straight-line basis over ĞŶĚŽĨĞĂĐŚƌĞƉŽƌƟŶŐƉĞƌŝŽĚ͘ŚĂŶŐĞƐŝŶƚŚĞĞǆƉĞĐƚĞĚƵƐĞĨƵů &ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚĂŶĚůŽƐƐĂƌĞĐĂƌƌŝĞĚ ƌĞǀĂůƵĂƟŽŶĚĞĮĐŝƚŝƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͕ĞǆĐĞƉƚ the lease term. ůŝĨĞŽƌƚŚĞĞǆƉĞĐƚĞĚƉĂƩĞƌŶŽĨĐŽŶƐƵŵƉƟŽŶŽĨĨƵƚƵƌĞĞĐŽŶŽŵŝĐ ŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƚĨĂŝƌǀĂůƵĞǁŝƚŚĐŚĂŶŐĞƐ ƚŽƚŚĞĞǆƚĞŶƚƚŚĂƚŝƚŽīƐĞƚƐĂŶĞǆŝƐƟŶŐƐƵƌƉůƵƐŽŶƚŚĞƐĂŵĞĂƐƐĞƚ ďĞŶĞĮƚƐĞŵďŽĚŝĞĚŝŶƚŚĞĂƐƐĞƚŝƐĂĐĐŽƵŶƚĞĚĨŽƌďǇĐŚĂŶŐŝŶŐƚŚĞ ŝŶĨĂŝƌǀĂůƵĞƌĞĐŽŐŶŝƐĞĚŝŶĮŶĂŶĐĞŝŶĐŽŵĞŽƌĮŶĂŶĐĞĐŽƐƚƐŝŶƚŚĞ ƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞ͘ GROUP AS A LESSOR ĂŵŽƌƟƐĂƟŽŶƉĞƌŝŽĚŽƌŵĞƚŚŽĚ͕ĂƐĂƉƉƌŽƉƌŝĂƚĞ͕ĂŶĚĂƌĞƚƌĞĂƚĞĚ income statement. ĂƐĐŚĂŶŐĞƐŝŶĂĐĐŽƵŶƟŶŐĞƐƟŵĂƚĞƐ͘dŚĞĂŵŽƌƟƐĂƟŽŶĞǆƉĞŶƐĞ ŶĂŶŶƵĂůƚƌĂŶƐĨĞƌĨƌŽŵƚŚĞĂƐƐĞƚƌĞǀĂůƵĂƟŽŶƌĞƐĞƌǀĞƚŽƌĞƚĂŝŶĞĚ >ĞĂƐĞƐŝŶǁŚŝĐŚƚŚĞ'ƌŽƵƉĚŽĞƐŶŽƚƚƌĂŶƐĨĞƌƐƵďƐƚĂŶƟĂůůǇĂůů ŽŶŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐǁŝƚŚĮŶŝƚĞůŝǀĞƐŝƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞŝŶĐŽŵĞ dŚĞ'ƌŽƵƉĞǀĂůƵĂƚĞƐŝƚƐĮŶĂŶĐŝĂůĂƐƐĞƚƐŚĞůĚĨŽƌƚƌĂĚŝŶŐ͕ŽƚŚĞƌ ĞĂƌŶŝŶŐƐŝƐŵĂĚĞĨŽƌƚŚĞĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶĚĞƉƌĞĐŝĂƟŽŶďĂƐĞĚ ƚŚĞƌŝƐŬƐĂŶĚďĞŶĞĮƚƐŽĨŽǁŶĞƌƐŚŝƉŽĨƚŚĞĂƐƐĞƚĂƌĞĐůĂƐƐŝĮĞĚĂƐ ƐƚĂƚĞŵĞŶƚŝŶƚŚĞĞǆƉĞŶƐĞĐĂƚĞŐŽƌǇĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĨƵŶĐƟŽŶ ƚŚĂŶĚĞƌŝǀĂƟǀĞƐ͕ƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌƚŚĞŝŶƚĞŶƟŽŶƚŽƐĞůů ŽŶƚŚĞƌĞǀĂůƵĞĚĐĂƌƌǇŝŶŐĂŵŽƵŶƚŽĨƚŚĞĂƐƐĞƚƐĂŶĚĚĞƉƌĞĐŝĂƟŽŶ ŽƉĞƌĂƟŶŐůĞĂƐĞƐ͘/ŶŝƟĂůĚŝƌĞĐƚĐŽƐƚƐŝŶĐƵƌƌĞĚŝŶŶĞŐŽƟĂƟŶŐĂŶ of the intangible assets. ƚŚĞŵŝŶƚŚĞŶĞĂƌƚĞƌŵŝƐƐƟůůĂƉƉƌŽƉƌŝĂƚĞ͘tŚĞŶƚŚĞ'ƌŽƵƉŝƐ ďĂƐĞĚŽŶƚŚĞĂƐƐĞƚƐŽƌŝŐŝŶĂůĐŽƐƚ͘ĚĚŝƟŽŶĂůůǇ͕ĂĐĐƵŵƵůĂƚĞĚ ŽƉĞƌĂƟŶŐůĞĂƐĞĂƌĞĂĚĚĞĚƚŽƚŚĞĐĂƌƌǇŝŶŐĂŵŽƵŶƚŽĨƚŚĞůĞĂƐĞĚ ƵŶĂďůĞƚŽƚƌĂĚĞƚŚĞƐĞĮŶĂŶĐŝĂůĂƐƐĞƚƐĚƵĞƚŽŝŶĂĐƟǀĞŵĂƌŬĞƚƐ ĚĞƉƌĞĐŝĂƟŽŶĂƐĂƚƚŚĞƌĞǀĂůƵĂƟŽŶĚĂƚĞŝƐĞůŝŵŝŶĂƚĞĚĂŐĂŝŶƐƚ asset and recognised over the lease term on the same bases as ŵŽƌƟǌĂƟŽŶŝƐĐĂůĐƵůĂƚĞĚŽŶĂƐƚƌĂŝŐŚƚͲůŝŶĞďĂƐŝƐŽǀĞƌƚŚĞĞƐƟ- ĂŶĚŵĂŶĂŐĞŵĞŶƚ͛ƐŝŶƚĞŶƟŽŶƚŽƐĞůůƚŚĞŵŝŶƚŚĞĨŽƌĞƐĞĞĂďůĞ the gross carrying amount of the asset and the net amount is rental income. mated useful lives of the assets as follows: ĨƵƚƵƌĞƐŝŐŶŝĮĐĂŶƚůǇĐŚĂŶŐĞƐ͕ƚŚĞ'ƌŽƵƉŵĂǇĞůĞĐƚƚŽƌĞĐůĂƐƐŝĨǇ restated to the revalued amount of the asset. Upon disposal, any ƚŚĞƐĞĮŶĂŶĐŝĂůĂƐƐĞƚƐŝŶƌĂƌĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͘dŚĞƌĞĐůĂƐƐŝĮĐĂƟŽŶ ͻ ŽŵƉƵƚĞƌ^ŽŌǁĂƌĞ ϯzĞĂƌƐ

64 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 65 to loans and receivables, available-for-sale or held to maturity FINANCIAL ASSETS CARRIED AT AMORTISED COST ĚĞƌŝǀĂƟǀĞƐĂƌĞĂůƐŽĐůĂƐƐŝĮĞĚĂƐŚĞůĚĨŽƌƚƌĂĚŝŶŐƵŶůĞƐƐƚŚĞǇĂƌĞ /ŶĂƐƐĞƐƐŝŶŐǀĂůƵĞŝŶƵƐĞ͕ƚŚĞĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐĂƌĞ ĚĞƉĞŶĚƐŽŶƚŚĞŶĂƚƵƌĞŽĨƚŚĞĂƐƐĞƚ͘dŚŝƐĞǀĂůƵĂƟŽŶĚŽĞƐŶŽƚ ĚĞƐŝŐŶĂƚĞĚĂƐĞīĞĐƟǀĞŚĞĚŐŝŶŐŝŶƐƚƌƵŵĞŶƚƐ͘ discounted to their present value using a pre-tax discount rate ĂīĞĐƚĂŶǇĮŶĂŶĐŝĂůĂƐƐĞƚƐĚĞƐŝŐŶĂƚĞĚĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚ &ŽƌĮŶĂŶĐŝĂůĂƐƐĞƚƐĐĂƌƌŝĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚ͕ƚŚĞ'ƌŽƵƉĮƌƐƚ ƚŚĂƚƌĞŇĞĐƚƐĐƵƌƌĞŶƚŵĂƌŬĞƚĂƐƐĞƐƐŵĞŶƚƐŽĨƚŚĞƟŵĞǀĂůƵĞŽĨ ŽƌůŽƐƐƵƐŝŶŐƚŚĞĨĂŝƌǀĂůƵĞŽƉƟŽŶĂƚĚĞƐŝŐŶĂƟŽŶ͘ assesses whether objective evidence of impairment exists 'ĂŝŶƐŽƌůŽƐƐĞƐŽŶůŝĂďŝůŝƟĞƐŚĞůĚĨŽƌƚƌĂĚŝŶŐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞ ŵŽŶĞǇĂŶĚƚŚĞƌŝƐŬƐƐƉĞĐŝĮĐƚŽƚŚĞĂƐƐĞƚ͘/ŶĚĞƚĞƌŵŝŶŝŶŐĨĂŝƌ ŝŶĚŝǀŝĚƵĂůůǇĨŽƌĮŶĂŶĐŝĂůĂƐƐĞƚƐƚŚĂƚĂƌĞŝŶĚŝǀŝĚƵĂůůǇƐŝŐŶŝĮĐĂŶƚ͕ ŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘dŚĞ'ƌŽƵƉŚĂƐŶŽƚĚĞƐŝŐŶĂƚĞĚĂŶǇĮŶĂŶĐŝĂů ǀĂůƵĞůĞƐƐĐŽƐƚƐƚŽƐĞůů͕ƌĞĐĞŶƚŵĂƌŬĞƚƚƌĂŶƐĂĐƟŽŶƐĂƌĞƚĂŬĞŶŝŶƚŽ >ŽĂŶƐĂŶĚƌĞĐĞŝǀĂďůĞƐ ŽƌĐŽůůĞĐƟǀĞůǇĨŽƌĮŶĂŶĐŝĂůĂƐƐĞƚƐƚŚĂƚĂƌĞŶŽƚŝŶĚŝǀŝĚƵĂůůǇƐŝŐ- ůŝĂďŝůŝƟĞƐƵƉŽŶŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶĂƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚ ĂĐĐŽƵŶƚ͕ŝĨĂǀĂŝůĂďůĞ͘/ĨŶŽƐƵĐŚƚƌĂŶƐĂĐƟŽŶƐĐĂŶďĞŝĚĞŶƟĮĞĚ͕ ŶŝĮĐĂŶƚ͘/ĨƚŚĞ'ƌŽƵƉĚĞƚĞƌŵŝŶĞƐƚŚĂƚŶŽŽďũĞĐƟǀĞĞǀŝĚĞŶĐĞŽĨ or loss. ĂŶĂƉƉƌŽƉƌŝĂƚĞǀĂůƵĂƟŽŶŵŽĚĞůŝƐƵƐĞĚ͘dŚĞƐĞĐĂůĐƵůĂƟŽŶƐĂƌĞ >ŽĂŶƐĂŶĚƌĞĐĞŝǀĂďůĞƐĂƌĞŶŽŶͲĚĞƌŝǀĂƟǀĞĮŶĂŶĐŝĂůĂƐƐĞƚƐǁŝƚŚ ŝŵƉĂŝƌŵĞŶƚĞǆŝƐƚƐĨŽƌĂŶŝŶĚŝǀŝĚƵĂůůǇĂƐƐĞƐƐĞĚĮŶĂŶĐŝĂůĂƐƐĞƚ͕ ĐŽƌƌŽďŽƌĂƚĞĚďǇǀĂůƵĂƟŽŶŵƵůƟƉůĞƐ͕ƋƵŽƚĞĚƐŚĂƌĞƉƌŝĐĞƐĨŽƌƉƵď- ĮǆĞĚŽƌĚĞƚĞƌŵŝŶĂďůĞƉĂǇŵĞŶƚƐƚŚĂƚĂƌĞŶŽƚƋƵŽƚĞĚŝŶĂŶĂĐ- ǁŚĞƚŚĞƌƐŝŐŶŝĮĐĂŶƚŽƌŶŽƚ͕ŝƚŝŶĐůƵĚĞƐƚŚĞĂƐƐĞƚŝŶĂŐƌŽƵƉŽĨ LOANS AND BORROWINGS licly traded subsidiaries or other available fair value indicators. ƟǀĞŵĂƌŬĞƚ͘ŌĞƌŝŶŝƟĂůŵĞĂƐƵƌĞŵĞŶƚ͕ƐƵĐŚĮŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞ ĮŶĂŶĐŝĂůĂƐƐĞƚƐǁŝƚŚƐŝŵŝůĂƌĐƌĞĚŝƚƌŝƐŬĐŚĂƌĂĐƚĞƌŝƐƟĐƐĂŶĚĐŽůůĞĐ- ƐƵďƐĞƋƵĞŶƚůǇŵĞĂƐƵƌĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚƵƐŝŶŐƚŚĞĞīĞĐƟǀĞ ƟǀĞůǇĂƐƐĞƐƐĞƐƚŚĞŵĨŽƌŝŵƉĂŝƌŵĞŶƚ͘ƐƐĞƚƐƚŚĂƚĂƌĞŝŶĚŝǀŝĚƵĂůůǇ ŌĞƌŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͕ŝŶƚĞƌĞƐƚďĞĂƌŝŶŐůŽĂŶƐĂŶĚďŽƌƌŽǁŝŶŐƐ dŚĞ'ƌŽƵƉďĂƐĞƐŝƚƐŝŵƉĂŝƌŵĞŶƚĐĂůĐƵůĂƟŽŶŽŶĚĞƚĂŝůĞĚďƵĚŐĞƚƐ ŝŶƚĞƌĞƐƚƌĂƚĞŵĞƚŚŽĚ;/ZͿ͕ůĞƐƐŝŵƉĂŝƌŵĞŶƚ͘ŵŽƌƟƐĞĚĐŽƐƚŝƐ assessed for impairment and for which an impairment loss is, ĂƌĞƐƵďƐĞƋƵĞŶƚůǇŵĞĂƐƵƌĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚƵƐŝŶŐƚŚĞĞīĞĐ- ĂŶĚĨŽƌĞĐĂƐƚĐĂůĐƵůĂƟŽŶƐǁŚŝĐŚĂƌĞƉƌĞƉĂƌĞĚƐĞƉĂƌĂƚĞůǇĨŽƌĞĂĐŚ calculated by taking into account any discount or premium on ŽƌĐŽŶƟŶƵĞƐƚŽďĞ͕ƌĞĐŽŐŶŝƐĞĚĂƌĞŶŽƚŝŶĐůƵĚĞĚŝŶĂĐŽůůĞĐƟǀĞ ƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞŵĞƚŚŽĚ͘'ĂŝŶƐĂŶĚůŽƐƐĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞ ŽĨƚŚĞ'ƌŽƵƉ͛ƐĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚƐƚŽǁŚŝĐŚƚŚĞŝŶĚŝǀŝĚƵĂůĂƐ- ĂĐƋƵŝƐŝƟŽŶĂŶĚĨĞĞƐŽƌĐŽƐƚƐƚŚĂƚĂƌĞĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞ/Z͘ assessment of impairment. ŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚǁŚĞŶƚŚĞůŝĂďŝůŝƟĞƐĂƌĞĚĞƌĞĐŽŐŶŝƐĞĚĂƐǁĞůů ƐĞƚƐĂƌĞĂůůŽĐĂƚĞĚ͘dŚĞƐĞďƵĚŐĞƚƐĂŶĚĨŽƌĞĐĂƐƚĐĂůĐƵůĂƟŽŶƐĂƌĞ dŚĞ/ZĂŵŽƌƟƐĂƟŽŶŝƐŝŶĐůƵĚĞĚŝŶĮŶĂŶĐĞŝŶĐŽŵĞŝŶƚŚĞŝŶĐŽŵĞ ĂƐƚŚƌŽƵŐŚƚŚĞĞīĞĐƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞŵĞƚŚŽĚ;/ZͿĂŵŽƌƟƐĂƟŽŶ ŐĞŶĞƌĂůůǇĐŽǀĞƌŝŶŐĂƉĞƌŝŽĚŽĨĮǀĞǇĞĂƌƐ͘&ŽƌůŽŶŐĞƌƉĞƌŝŽĚƐ͕Ă statement. The losses arising from impairment are recognised /ĨƚŚĞƌĞŝƐŽďũĞĐƟǀĞĞǀŝĚĞŶĐĞƚŚĂƚĂŶŝŵƉĂŝƌŵĞŶƚůŽƐƐŚĂƐďĞĞŶ ƉƌŽĐĞƐƐ͘ŵŽƌƟƐĞĚĐŽƐƚŝƐĐĂůĐƵůĂƚĞĚďǇƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚĂŶǇ long term growth rate is calculated and applied to project future ŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚŝŶĮŶĂŶĐĞĐŽƐƚƐ͘ ŝŶĐƵƌƌĞĚ͕ƚŚĞĂŵŽƵŶƚŽĨƚŚĞůŽƐƐŝƐŵĞĂƐƵƌĞĚĂƐƚŚĞĚŝīĞƌĞŶĐĞ ĚŝƐĐŽƵŶƚŽƌƉƌĞŵŝƵŵŽŶĂĐƋƵŝƐŝƟŽŶĂŶĚĨĞĞƐŽƌĐŽƐƚƐƚŚĂƚĂƌĞ ĐĂƐŚŇŽǁƐĂŌĞƌƚŚĞĮŌŚǇĞĂƌ͘ between the assets carrying amount and the present value of ĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞ/Z͘dŚĞ/ZĂŵŽƌƟƐĂƟŽŶŝƐŝŶĐůƵĚĞĚŝŶ DERECOGNITION ĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐ;ĞǆĐůƵĚŝŶŐĨƵƚƵƌĞĞǆƉĞĐƚĞĚĐƌĞĚŝƚ ĮŶĂŶĐĞĐŽƐƚƐŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘ /ŵƉĂŝƌŵĞŶƚůŽƐƐĞƐŽĨĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ͕ŝŶĐůƵĚŝŶŐŝŵƉĂŝƌ- losses that have not yet been incurred). The present value of the ment on inventories, are recognised in the income statement ĮŶĂŶĐŝĂůĂƐƐĞƚ;Žƌ͕ǁŚĞƌĞĂƉƉůŝĐĂďůĞĂƉĂƌƚŽĨĂĮŶĂŶĐŝĂůĂƐƐĞƚŽƌ ĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐŝƐĚŝƐĐŽƵŶƚĞĚĂƚƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚ͛Ɛ DERECOGNITION ŝŶƚŚŽƐĞĞǆƉĞŶƐĞĐĂƚĞŐŽƌŝĞƐĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĨƵŶĐƟŽŶŽĨƚŚĞ ƉĂƌƚŽĨĂŐƌŽƵƉŽĨƐŝŵŝůĂƌĮŶĂŶĐŝĂůĂƐƐĞƚƐͿŝƐĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶ͗ ŽƌŝŐŝŶĂůĞīĞĐƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞ͘/ĨĂůŽĂŶŚĂƐĂǀĂƌŝĂďůĞŝŶƚĞƌĞƐƚ impaired asset, except for a property previously revalued where rate, the discount rate for measuring any impairment loss is the ĮŶĂŶĐŝĂůůŝĂďŝůŝƚǇŝƐĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶƚŚĞŽďůŝŐĂƟŽŶƵŶĚĞƌƚŚĞ ƚŚĞƌĞǀĂůƵĂƟŽŶǁĂƐƚĂŬĞŶƚŽŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘/ŶƚŚŝƐ ͻ dŚĞƌŝŐŚƚƐƚŽƌĞĐĞŝǀĞĐĂƐŚŇŽǁƐĨƌŽŵƚŚĞĂƐƐĞƚŚĂǀĞĞǆƉŝƌĞĚ ĐƵƌƌĞŶƚĞīĞĐƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞ͘ ůŝĂďŝůŝƚǇŝƐĚŝƐĐŚĂƌŐĞĚŽƌĐĂŶĐĞůůĞĚŽƌĞǆƉŝƌĞƐ͘tŚĞŶĂŶĞǆŝƐƟŶŐ case, the impairment is also recognised in other comprehensive ͻ dŚĞ'ƌŽƵƉŚĂƐƚƌĂŶƐĨĞƌƌĞĚŝƚƐƌŝŐŚƚƐƚŽƌĞĐĞŝǀĞĐĂƐŚŇŽǁƐ ĮŶĂŶĐŝĂůůŝĂďŝůŝƚǇŝƐƌĞƉůĂĐĞĚďǇĂŶŽƚŚĞƌĨƌŽŵƚŚĞƐĂŵĞůĞŶĚĞƌŽŶ ŝŶĐŽŵĞƵƉƚŽƚŚĞĂŵŽƵŶƚŽĨĂŶǇƉƌĞǀŝŽƵƐĞǀĂůƵĂƟŽŶ͘ ĨƌŽŵƚŚĞĂƐƐĞƚŽƌŚĂƐĂƐƐƵŵĞĚĂŶŽďůŝŐĂƟŽŶƚŽƉĂǇƚŚĞƌĞĐĞŝǀĞĚ The carrying amount of the asset is reduced through the use of ƐƵďƐƚĂŶƟĂůůǇĚŝīĞƌĞŶƚƚĞƌŵƐ͕ŽƌƚŚĞƚĞƌŵƐŽĨĂŶĞǆŝƐƟŶŐůŝĂďŝůŝƚǇ ĐĂƐŚŇŽǁƐŝŶĨƵůůǁŝƚŚŽƵƚŵĂƚĞƌŝĂůĚĞůĂǇƚŽĂƚŚŝƌĚƉĂƌƚǇƵŶĚĞƌĂ an allowance account and the amount of the loss is recognised ĂƌĞƐƵďƐƚĂŶƟĂůůǇŵŽĚŝĮĞĚ͕ƐƵĐŚĂŶĞǆĐŚĂŶŐĞŽƌŵŽĚŝĮĐĂƟŽŶŝƐ For assets excluding goodwill, an assessment is made at each ͚ƉĂƐƐͲƚŚƌŽƵŐŚ͛ĂƌƌĂŶŐĞŵĞŶƚ͖ĂŶĚĞŝƚŚĞƌ;ĂͿƚŚĞ'ƌŽƵƉŚĂƐƚƌĂŶƐ- ŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘/ŶƚĞƌĞƐƚŝŶĐŽŵĞĐŽŶƟŶƵĞƐƚŽďĞĂĐ- ƚƌĞĂƚĞĚĂƐĂĚĞƌĞĐŽŐŶŝƟŽŶŽĨƚŚĞŽƌŝŐŝŶĂůůŝĂďŝůŝƚǇĂŶĚƚŚĞƌĞĐ- ƌĞƉŽƌƟŶŐĚĂƚĞĂƐƚŽǁŚĞƚŚĞƌƚŚĞƌĞŝƐĂŶǇŝŶĚŝĐĂƟŽŶƚŚĂƚƉƌĞǀŝ- ĨĞƌƌĞĚƐƵďƐƚĂŶƟĂůůǇĂůůƚŚĞƌŝƐŬƐĂŶĚƌĞǁĂƌĚƐŽĨƚŚĞĂƐƐĞƚ͕Žƌ;ďͿ crued on the reduced carrying amount and is accrued using the ŽŐŶŝƟŽŶŽĨĂŶĞǁůŝĂďŝůŝƚǇ͕ĂŶĚƚŚĞĚŝīĞƌĞŶĐĞŝŶƚŚĞƌĞƐƉĞĐƟǀĞ ously recognised impairment losses may no longer exist or may ƚŚĞ'ƌŽƵƉŚĂƐŶĞŝƚŚĞƌƚƌĂŶƐĨĞƌƌĞĚŶŽƌƌĞƚĂŝŶĞĚƐƵďƐƚĂŶƟĂůůǇĂůů ƌĂƚĞŽĨŝŶƚĞƌĞƐƚƵƐĞĚƚŽĚŝƐĐŽƵŶƚƚŚĞĨƵƚƵƌĞĐĂƐŚŇŽǁƐĨŽƌƚŚĞ carrying amounts is recognised in the income statement. ŚĂǀĞĚĞĐƌĞĂƐĞĚ͘/ĨƐƵĐŚŝŶĚŝĐĂƟŽŶĞǆŝƐƚƐ͕ƚŚĞ'ƌŽƵƉĞƐƟŵĂƚĞƐ the risks and rewards of the asset, but has transferred control purpose of measuring the impairment loss. The interest income ƚŚĞĂƐƐĞƚ͛ƐŽƌĐĂƐŚͲŐĞŶĞƌĂƟŶŐƵŶŝƚ͛ƐƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚ͘ of the asset. ŝƐƌĞĐŽƌĚĞĚĂƐƉĂƌƚŽĨĮŶĂŶĐĞŝŶĐŽŵĞŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ͘ iv) KīƐĞƫŶŐŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ previously recognised impairment loss is reversed only if there >ŽĂŶƐƚŽŐĞƚŚĞƌǁŝƚŚƚŚĞĂƐƐŽĐŝĂƚĞĚĂůůŽǁĂŶĐĞĂƌĞǁƌŝƩĞŶŽī ŚĂƐďĞĞŶĂĐŚĂŶŐĞŝŶƚŚĞĂƐƐƵŵƉƟŽŶƐƵƐĞĚƚŽĚĞƚĞƌŵŝŶĞƚŚĞ tŚĞŶƚŚĞ'ƌŽƵƉŚĂƐƚƌĂŶƐĨĞƌƌĞĚŝƚƐƌŝŐŚƚƐƚŽƌĞĐĞŝǀĞĐĂƐŚŇŽǁƐ ǁŚĞŶƚŚĞƌĞŝƐŶŽƌĞĂůŝƐƟĐƉƌŽƐƉĞĐƚŽĨĨƵƚƵƌĞƌĞĐŽǀĞƌǇĂŶĚĂůůĐŽů- &ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƌĞŽīƐĞƚĂŶĚƚŚĞŶĞƚ asset’s recoverable amount since the last impairment loss was from an asset or has entered into a pass-through arrangement, lateral has been realised or has been transferred to the Group. If, ĂŵŽƵŶƚƌĞƉŽƌƚĞĚŝŶƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂů recognised. The reversal is limited so that the carrying amount ĂŶĚŚĂƐŶĞŝƚŚĞƌƚƌĂŶƐĨĞƌƌĞĚŶŽƌƌĞƚĂŝŶĞĚƐƵďƐƚĂŶƟĂůůǇĂůůŽĨ ŝŶĂƐƵďƐĞƋƵĞŶƚǇĞĂƌ͕ƚŚĞĂŵŽƵŶƚŽĨƚŚĞĞƐƟŵĂƚĞĚŝŵƉĂŝƌŵĞŶƚ ƉŽƐŝƟŽŶŝĨ͕ĂŶĚŽŶůǇŝĨ͕ƚŚĞƌĞŝƐĂĐƵƌƌĞŶƚůǇĞŶĨŽƌĐĞĂďůĞůĞŐĂů of the asset does not exceed its recoverable amount, nor exceed the risks and rewards of the asset nor transferred control of it, ůŽƐƐŝŶĐƌĞĂƐĞƐŽƌĚĞĐƌĞĂƐĞƐďĞĐĂƵƐĞŽĨĂŶĞǀĞŶƚŽĐĐƵƌƌŝŶŐĂŌĞƌ ƌŝŐŚƚƚŽŽīƐĞƚƚŚĞƌĞĐŽŐŶŝƐĞĚĂŵŽƵŶƚƐĂŶĚƚŚĞƌĞŝƐĂŶŝŶƚĞŶƟŽŶ the carrying amount that would have been determined, net of ƚŚĞĂƐƐĞƚŝƐƌĞĐŽŐŶŝƐĞĚƚŽƚŚĞĞǆƚĞŶƚŽĨƚŚĞ'ƌŽƵƉ͛ƐĐŽŶƟŶƵŝŶŐ the impairment was recognised, the previously recognised im- ƚŽƐĞƩůĞŽŶĂŶĞƚďĂƐŝƐ͕ŽƌƚŽƌĞĂůŝƐĞƚŚĞĂƐƐĞƚƐĂŶĚƐĞƩůĞƚŚĞ ĚĞƉƌĞĐŝĂƟŽŶ͕ŚĂĚŶŽŝŵƉĂŝƌŵĞŶƚůŽƐƐďĞĞŶƌĞĐŽŐŶŝƐĞĚĨŽƌƚŚĞ involvement in it. ƉĂŝƌŵĞŶƚůŽƐƐŝƐŝŶĐƌĞĂƐĞĚŽƌƌĞĚƵĐĞĚďǇĂĚũƵƐƟŶŐƚŚĞĂůůŽǁĂŶĐĞ ůŝĂďŝůŝƟĞƐƐŝŵƵůƚĂŶĞŽƵƐůǇ͘ asset in prior years. Such reversal is recognised in the income ĂĐĐŽƵŶƚ͘/ĨĂĨƵƚƵƌĞǁƌŝƚĞͲŽīŝƐůĂƚĞƌƌĞĐŽǀĞƌĞĚ͕ƚŚĞƌĞĐŽǀĞƌǇŝƐ statement unless the asset is carried at a revalued amount, in In that case, the Group also recognises an associated liability. ĐƌĞĚŝƚĞĚƚŽĮŶĂŶĐĞĐŽƐƚƐŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ v) &ĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ ǁŚŝĐŚĐĂƐĞƚŚĞƌĞǀĞƌƐĂůŝƐƚƌĞĂƚĞĚĂƐĂƌĞǀĂůƵĂƟŽŶŝŶĐƌĞĂƐĞ͘ The transferred asset and the associated liability are measured The following criteria are also applied in assessing impairment ŽŶĂďĂƐŝƐƚŚĂƚƌĞŇĞĐƚƐƚŚĞƌŝŐŚƚƐĂŶĚŽďůŝŐĂƟŽŶƐƚŚĂƚƚŚĞ'ƌŽƵƉ iii) &ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐ dŚĞĨĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐƚŚĂƚĂƌĞƚƌĂĚĞĚŝŶĂĐƟǀĞ ŽĨƐƉĞĐŝĮĐĂƐƐĞƚƐ͗ has retained. ŵĂƌŬĞƚƐĂƚĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞŝƐĚĞƚĞƌŵŝŶĞĚďǇƌĞĨĞƌĞŶĐĞƚŽ INITIAL RECOGNITION AND MEASUREMENT ƋƵŽƚĞĚŵĂƌŬĞƚƉƌŝĐĞƐŽƌĚĞĂůĞƌƉƌŝĐĞƋƵŽƚĂƟŽŶƐ;ďŝĚƉƌŝĐĞĨŽƌ 2.4.14 Inventories ŽŶƟŶƵŝŶŐŝŶǀŽůǀĞŵĞŶƚƚŚĂƚƚĂŬĞƐƚŚĞĨŽƌŵŽĨĂŐƵĂƌĂŶƚĞĞŽǀĞƌ ůŽŶŐƉŽƐŝƟŽŶƐĂŶĚĂƐŬƉƌŝĐĞĨŽƌƐŚŽƌƚƉŽƐŝƟŽŶƐͿ͕ǁŝƚŚŽƵƚĂŶǇ the transferred asset is measured at the lower Of the original &ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐǁŝƚŚŝŶƚŚĞƐĐŽƉĞŽĨ><^ϯϵĂƌĞĐůĂƐƐŝĮĞĚĂƐ ĚĞĚƵĐƟŽŶĨŽƌƚƌĂŶƐĂĐƟŽŶĐŽƐƚƐ͘ /ŶǀĞŶƚŽƌŝĞƐĂƌĞƐƚĂƚĞĚĂƚƚŚĞůŽǁĞƌŽĨĐŽƐƚĂŶĚŶĞƚƌĞĂůŝǌĂďůĞ carrying amount of the asset and the maximum amount of con- ĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐ͕ůŽĂŶƐĂŶĚ value. The management primarily determines cost of inventories ƐŝĚĞƌĂƟŽŶƚŚĂƚƚŚĞ'ƌŽƵƉĐŽƵůĚďĞƌĞƋƵŝƌĞĚƚŽƌĞƉĂǇ͘ ďŽƌƌŽǁŝŶŐƐ͕ŽƌĂƐĚĞƌŝǀĂƟǀĞƐĚĞƐŝŐŶĂƚĞĚĂƐŚĞĚŐŝŶŐŝŶƐƚƌƵŵĞŶƚƐ &ŽƌĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐŶŽƚƚƌĂĚĞĚŝŶĂŶĂĐƟǀĞŵĂƌŬĞƚ͕ƚŚĞĨĂŝƌ ƵƐŝŶŐƚŚĞǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞŵĞƚŚŽĚ͘dŚĞŵĂŶĂŐĞŵĞŶƚĞƐƟŵĂƚĞƐ ŝŶĂŶĞīĞĐƟǀĞŚĞĚŐĞ͕ĂƐĂƉƉƌŽƉƌŝĂƚĞ͘dŚĞ'ƌŽƵƉĚĞƚĞƌŵŝŶĞƐ ǀĂůƵĞŝƐĚĞƚĞƌŵŝŶĞĚƵƐŝŶŐĂƉƉƌŽƉƌŝĂƚĞǀĂůƵĂƟŽŶƚĞĐŚŶŝƋƵĞƐ͘^ƵĐŚ ƚŚĞŶĞƚƌĞĂůŝǌĂďůĞǀĂůƵĞŽĨŝŶǀĞŶƚŽƌŝĞƐďĂƐĞĚŽŶĂƐƐĞƐƐŵĞŶƚŽĨ ii) /ŵƉĂŝƌŵĞŶƚŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐ ƚŚĞĐůĂƐƐŝĮĐĂƟŽŶŽĨŝƚƐĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƚŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶ͘ ƚĞĐŚŶŝƋƵĞƐŵĂǇŝŶĐůƵĚĞ͖ ƌĞĐĞŝƉƚŽĨĐŽŵŵŝƩĞĚƐĂůĞƐƉƌŝĐĞƐĂŶĚƉƌŽǀŝĚĞĨŽƌĞǆĐĞƐƐĂŶĚ ŽďƐŽůĞƚĞŝŶǀĞŶƚŽƌŝĞƐďĂƐĞĚŽŶŚŝƐƚŽƌŝĐĂůƵƐĂŐĞ͕ĞƐƟŵĂƚĞĚĨƵƚƵƌĞ dŚĞ'ƌŽƵƉĂƐƐĞƐƐĞƐĂƚĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞǁŚĞƚŚĞƌƚŚĞƌĞŝƐĂŶǇ ůůĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶŝƟĂůůǇĂƚĨĂŝƌǀĂůƵĞĂŶĚ͕ hƐŝŶŐƌĞĐĞŶƚĂƌŵ͛ƐůĞŶŐƚŚŵĂƌŬĞƚƚƌĂŶƐĂĐƟŽŶƐ͖ ĚĞŵĂŶĚĂŶĚƌĞůĂƚĞĚƉƌŝĐŝŶŐ͘/ŶĚĞƚĞƌŵŝŶŝŶŐĞǆĐĞƐƐƋƵĂŶƟƟĞƐ͕ ŽďũĞĐƟǀĞĞǀŝĚĞŶĐĞƚŚĂƚĂĮŶĂŶĐŝĂůĂƐƐĞƚŽƌĂŐƌŽƵƉŽĨĮŶĂŶĐŝĂů ŝŶƚŚĞĐĂƐĞŽĨůŽĂŶƐĂŶĚďŽƌƌŽǁŝŶŐƐ͕ĐĂƌƌŝĞĚĂƚĂŵŽƌƟƐĞĚĐŽƐƚ͘ reference to the current fair value of another instrument that is ƚŚĞŵĂŶĂŐĞŵĞŶƚĐŽŶƐŝĚĞƌƐƌĞĐĞŶƚƐĂůĞƐĂĐƟǀŝƟĞƐ͕ƌĞůĂƚĞĚŵĂƌŐŝŶ ĂƐƐĞƚƐŝƐŝŵƉĂŝƌĞĚ͘ĮŶĂŶĐŝĂůĂƐƐĞƚŽƌĂŐƌŽƵƉŽĨĮŶĂŶĐŝĂů dŚŝƐŝŶĐůƵĚĞƐĚŝƌĞĐƚůǇĂƩƌŝďƵƚĂďůĞƚƌĂŶƐĂĐƟŽŶĐŽƐƚƐ͘ ƐƵďƐƚĂŶƟĂůůǇƚŚĞƐĂŵĞ͖ ĂŶĚŵĂƌŬĞƚƉŽƐŝƟŽŶŝŶŐŽĨŝƚƐƉƌŽĚƵĐƚƐ͘,ŽǁĞǀĞƌ͕ĨĂĐƚŽƌƐďĞǇŽŶĚ assets is deemed to be impaired if, and only if, there is objec- ĂĚŝƐĐŽƵŶƚĞĚĐĂƐŚŇŽǁĂŶĂůǇƐŝƐŽƌŽƚŚĞƌǀĂůƵĂƟŽŶŵŽĚĞůƐ͘ its contract, such as demand levels, technological advances ƟǀĞĞǀŝĚĞŶĐĞŽĨŝŵƉĂŝƌŵĞŶƚĂƐĂƌĞƐƵůƚŽĨŽŶĞŽƌŵŽƌĞĞǀĞŶƚƐ dŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐŝŶĐůƵĚĞƚƌĂĚĞĂŶĚŽƚŚĞƌƉĂǇĂďůĞƐ͕ ĂŶĚƉƌŝĐŝŶŐĐŽŵƉĞƟƟŽŶ͕ĐŽƵůĚĐŚĂŶŐĞĨƌŽŵƉĞƌŝŽĚƚŽƉĞƌŝŽĚ͘ ƚŚĂƚŚĂƐŽĐĐƵƌƌĞĚĂŌĞƌƚŚĞŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶŽĨƚŚĞĂƐƐĞƚ;ĂŶ ďĂŶŬŽǀĞƌĚƌĂŌƐ͕ůŽĂŶƐĂŶĚďŽƌƌŽǁŝŶŐƐ͘ ŶĂŶĂůǇƐŝƐŽĨĨĂŝƌǀĂůƵĞƐŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĂŶĚĨƵƌƚŚĞƌ Such factors may require the Group to reduce the value of its incurred ‘loss event’) and that loss event has an impact on the details as to how they are measured are provided in Note 23. inventories. ĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐŽĨƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚŽƌƚŚĞŐƌŽƵƉ SUBSEQUENT MEASUREMENT ŽĨĮŶĂŶĐŝĂůĂƐƐĞƚƐƚŚĂƚĐĂŶďĞƌĞůŝĂďůǇĞƐƟŵĂƚĞĚ͘ǀŝĚĞŶĐĞŽĨ dŚĞŵĞĂƐƵƌĞŵĞŶƚŽĨĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĚĞƉĞŶĚƐŽŶƚŚĞŝƌĐůĂƐ- Ϯ͘ϰ͘ϭϯ/ŵƉĂŝƌŵĞŶƚŽĨŶŽŶͲĮŶĂŶĐŝĂůĂƐƐĞƚƐ ŽƐƚƐŝŶĐƵƌƌĞĚŝŶďƌŝŶŐŝŶŐĞĂĐŚƉƌŽĚƵĐƚƚŽŝƚƐƉƌĞƐĞŶƚůŽĐĂƟŽŶ ŝŵƉĂŝƌŵĞŶƚŵĂǇŝŶĐůƵĚĞŝŶĚŝĐĂƟŽŶƐƚŚĂƚƚŚĞĚĞďƚŽƌƐŽƌĂŐƌŽƵƉ ƐŝĮĐĂƟŽŶĂƐĨŽůůŽǁƐ͗ ĂŶĚĐŽŶĚŝƟŽŶŝƐĂĐĐŽƵŶƚĞĚĨŽƌĂƐĨŽůůŽǁƐ͗ ŽĨĚĞďƚŽƌƐŝƐĞǆƉĞƌŝĞŶĐŝŶŐƐŝŐŶŝĮĐĂŶƚĮŶĂŶĐŝĂůĚŝĸĐƵůƚǇ͕ĚĞĨĂƵůƚ dŚĞ'ƌŽƵƉĂƐƐĞƐƐĞƐĂƚĞĂĐŚƌĞƉŽƌƟŶŐĚĂƚĞǁŚĞƚŚĞƌƚŚĞƌĞŝƐĂŶ or delinquency in interest or principal payments, the probability FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS ŝŶĚŝĐĂƟŽŶƚŚĂƚĂŶĂƐƐĞƚŵĂǇďĞŝŵƉĂŝƌĞĚ͘/ĨĂŶǇŝŶĚŝĐĂƟŽŶĞǆ- ͻ Purchase cost on an actual basis ƚŚĂƚƚŚĞǇǁŝůůĞŶƚĞƌďĂŶŬƌƵƉƚĐǇŽƌŽƚŚĞƌĮŶĂŶĐŝĂůƌĞŽƌŐĂŶŝƐĂƟŽŶ ŝƐƚƐ͕ŽƌǁŚĞŶĂŶŶƵĂůŝŵƉĂŝƌŵĞŶƚƚĞƐƟŶŐĨŽƌĂŶĂƐƐĞƚŝƐƌĞƋƵŝƌĞĚ͕ ͻ Closing balance of the inventory on weighted average cost. and where observable data indicate that there is a measurable &ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌůŽƐƐŝŶĐůƵĚĞ ƚŚĞ'ƌŽƵƉĞƐƟŵĂƚĞƐƚŚĞĂƐƐĞƚ͛ƐƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚ͘ŶĂƐƐĞƚ͛Ɛ ĚĞĐƌĞĂƐĞŝŶƚŚĞĞƐƟŵĂƚĞĚĨƵƚƵƌĞĐĂƐŚŇŽǁƐ͕ƐƵĐŚĂƐĐŚĂŶŐĞƐ ĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐŚĞůĚĨŽƌƚƌĂĚŝŶŐĂŶĚĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĚĞƐ- ƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚŝƐƚŚĞŚŝŐŚĞƌŽĨĂŶĂƐƐĞƚ͛ƐŽƌĐĂƐŚͲŐĞŶĞƌĂƟŶŐ ŝŶĂƌƌĞĂƌƐŽƌĞĐŽŶŽŵŝĐĐŽŶĚŝƟŽŶƐƚŚĂƚĐŽƌƌĞůĂƚĞǁŝƚŚĚĞĨĂƵůƚƐ͘ ŝŐŶĂƚĞĚƵƉŽŶŝŶŝƟĂůƌĞĐŽŐŶŝƟŽŶĂƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚŽƌ unit (CGU) fair value less costs to sell and its value in use and ůŽƐƐ͘&ŝŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĂƌĞĐůĂƐƐŝĮĞĚĂƐŚĞůĚĨŽƌƚƌĂĚŝŶŐŝĨƚŚĞǇ is determined for an individual asset, unless the asset does not are acquired for the purpose of selling in the near term. This ŐĞŶĞƌĂƚĞĐĂƐŚŝŶŇŽǁƐƚŚĂƚĂƌĞůĂƌŐĞůǇŝŶĚĞƉĞŶĚĞŶƚŽĨƚŚŽƐĞĨƌŽŵ ĐĂƚĞŐŽƌǇŝŶĐůƵĚĞƐĚĞƌŝǀĂƟǀĞĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĞŶƚĞƌĞĚŝŶƚŽ other assets or groups of assets. Where the carrying amount of by the Group that are not designated as hedging instruments in an asset or CGU exceeds its recoverable amount, the asset is con- 66 ODEL ANNUAL REPORT ŚĞĚŐĞƌĞůĂƟŽŶƐŚŝƉƐĂƐĚĞĮŶĞĚďǇ><^ϯϵ͘^ĞƉĂƌĂƚĞĚĞŵďĞĚĚĞĚ ƐŝĚĞƌĞĚŝŵƉĂŝƌĞĚĂŶĚŝƐǁƌŝƩĞŶĚŽǁŶƚŽŝƚƐƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚ͘ ODEL ANNUAL REPORT 67 Ϯ͘ϰ͘ϭϱĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐ Ϯ͘ϰ͘ϭϳWŽƐƚͲĞŵƉůŽǇŵĞŶƚďĞŶĞĮƚƐ NOTES TO THE FINANCIAL STATEMENT Year ended 31 March 2014 ĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝ- &/EE&/dW>Eͳ'Zdh/dz͗ ƟŽŶĐŽŵƉƌŝƐĞĐĂƐŚĂƚďĂŶŬƐĂŶĚŽŶŚĂŶĚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐ with a maturity of three months or less. 'ƌĂƚƵŝƚǇŝƐĂƉŽƐƚĞŵƉůŽǇŵĞŶƚďĞŶĞĮƚƉůĂŶ͘WƌŽǀŝƐŝŽŶƐŚĂǀĞ ďĞĞŶŵĂĚĞĨŽƌƌĞƟƌĞŵĞŶƚŐƌĂƚƵŝƟĞƐĨƌŽŵƚŚĞĮƌƐƚǇĞĂƌŽĨƐĞƌǀŝĐĞ Company Group &ŽƌƚŚĞƉƵƌƉŽƐĞŽĨƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚĐĂƐŚŇŽǁƐ͕ĐĂƐŚ ĨŽƌĂůůĞŵƉůŽǇĞĞƐŝŶĐŽŶĨŽƌŵŝƚǇǁŝƚŚ><^ϭϵ͘,ŽǁĞǀĞƌƵŶĚĞƌ 3. REVENUE 2014 2013 2014 2013 and cash equivalents consist of cash and short-term deposits as the Gratuity Act No. 12 of 1983, the liability to an employee LKR LKR LKR LKR ĚĞĮŶĞĚĂďŽǀĞ͕ŶĞƚŽĨŽƵƚƐƚĂŶĚŝŶŐďĂŶŬŽǀĞƌĚƌĂŌƐ͘ ĂƌŝƐĞƐŽŶůǇŽŶĐŽŵƉůĞƟŽŶŽĨĮǀĞǇĞĂƌƐŽĨĐŽŶƟŶƵĞĚƐĞƌǀŝĐĞ͕dŚĞ Sale of goods Company is liable to pay gratuity in terms of relevant statute. In 2.4.16 Provisions ŽƌĚĞƌƚŽŵĞĞƚƚŚŝƐůŝĂďŝůŝƚǇƚŚĞ'ƌŽƵƉƵƐĞƐĂŶĂĐƚƵĂƌŝĂůǀĂůƵĂƟŽŶ Sales - local 4 ,522,465,701 4 ,468,406,242 4 ,524,468,638 4,468,860,139 ŵĞƚŚŽĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ><^ϭϵ͘ Sales - Exports - 985,407 1 ,338,58 8 1,237,744 Provisions are recognised when the Group has a present obliga- 4,522,465,701 4 ,469,391,64 9 4 ,525,807,227 4,470,097,883 ƟŽŶ;ůĞŐĂůŽƌĐŽŶƐƚƌƵĐƟǀĞͿĂƐĂƌĞƐƵůƚŽĨĂƉĂƐƚĞǀĞŶƚ͕ŝƚŝƐƉƌŽď- dŚĞĐŽƐƚŽĨƉƌŽǀŝĚŝŶŐďĞŶĞĮƚƐƵŶĚĞƌŐƌĂƚƵŝƚǇŝƐĚĞƚĞƌŵŝŶĞĚƵƐ- Less: Sales tax (44,192,425) (44,615,356) (44,192,425) ( 44,615,356) ĂďůĞƚŚĂƚĂŶŽƵƞůŽǁŽĨƌĞƐŽƵƌĐĞƐĞŵďŽĚǇŝŶŐĞĐŽŶŽŵŝĐďĞŶĞĮƚƐ ing the projected unit credit method. Actuarial gains and losses ǁŝůůďĞƌĞƋƵŝƌĞĚƚŽƐĞƩůĞƚŚĞŽďůŝŐĂƟŽŶĂŶĚĂƌĞůŝĂďůĞĞƐƟŵĂƚĞ are recognised in full in the period in which they occur in the Sales of goods 4,478,273,276 4,424,776,293 4,481,614,802 4,425,482,527 ĐĂŶďĞŵĂĚĞŽĨƚŚĞĂŵŽƵŶƚŽĨƚŚĞŽďůŝŐĂƟŽŶ͘ ƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘dŚĞĚĞĮŶĞĚďĞŶĞĮƚůŝĂďŝůŝƚǇ ĐŽŵƉƌŝƐĞƐƚŚĞƉƌĞƐĞŶƚǀĂůƵĞŽĨƚŚĞĚĞĮŶĞĚďĞŶĞĮƚŽďůŝŐĂƟŽŶ Rental income 9 0,774,054 8 4,869,738 90,774,054 8 4,869,738 Where the Group expects some or all of a provision to be reim- using a discount rate based on market yields at the end of re- bursed, the reimbursement is recognised as a separate asset but ƉŽƌƟŶŐƉĞƌŝŽĚŽŶŐŽǀĞƌŶŵĞŶƚďŽŶĚƐŽĨĂƐŝŵŝůĂƌƚĞŶƵƌĞĂƐƚŚĞ Advertising income 1 0,607,578 1 3,856,166 10,607,578 1 3,856,166 only when the reimbursement is virtually certain. The expense ĞƐƟŵĂƚĞĚƚĞƌŵŽĨƚŚĞŐƌĂƚƵŝƚǇŽďůŝŐĂƟŽŶ͘ Commission income 175,937 138,701 1 75,937 138,701 ƌĞůĂƟŶŐƚŽĂŶǇƉƌŽǀŝƐŝŽŶŝƐƉƌĞƐĞŶƚĞĚŝŶƚŚĞŝŶĐŽŵĞƐƚĂƚĞŵĞŶƚ Service income 1 1,881,250 9 ,329,867 11,881,250 9,329,867 net of any reimbursement. dŚĞŐƌĂƚƵŝƚǇďĞŶĞĮƚŽĨƚŚĞ'ƌŽƵƉŝŶƵŶĨƵŶĚĞĚ͘ 4,591,712,096 4,532,970,76 5 4 ,595,053,622 4,533,676,999 /ĨƚŚĞĞīĞĐƚŽĨƚŚĞƟŵĞǀĂůƵĞŽĨŵŽŶĞǇŝƐŵĂƚĞƌŝĂů͕ƉƌŽǀŝƐŝŽŶƐ DEFINED CONTRIBUTION PLANS ĂƌĞĚŝƐĐŽƵŶƚĞĚƵƐŝŶŐĂĐƵƌƌĞŶƚƉƌĞͲƚĂǆƌĂƚĞƚŚĂƚƌĞŇĞĐƚƐ͕ǁŚĞƌĞ ĂƉƉƌŽƉƌŝĂƚĞ͕ƚŚĞƌŝƐŬƐƐƉĞĐŝĮĐƚŽƚŚĞůŝĂďŝůŝƚǇ͘tŚĞƌĞĚŝƐĐŽƵŶƟŶŐ Employees are eligible for Employees’ Provident Fund Contribu- 4. OTHER OPERATING INCOME Company Group ŝƐƵƐĞĚ͕ƚŚĞŝŶĐƌĞĂƐĞŝŶƚŚĞƉƌŽǀŝƐŝŽŶĚƵĞƚŽƚŚĞƉĂƐƐĂŐĞŽĨƟŵĞ ƟŽŶƐĂŶĚŵƉůŽǇĞĞƐ͛dƌƵƐƚ&ƵŶĚŽŶƚƌŝďƵƟŽŶƐŝŶůŝŶĞǁŝƚŚƚŚĞ ŝƐƌĞĐŽŐŶŝƐĞĚĂƐĂĮŶĂŶĐĞĐŽƐƚ͘ ƌĞƐƉĞĐƟǀĞƐƚĂƚƵƚĞƐĂŶĚƌĞŐƵůĂƟŽŶƐ͘dŚĞŽŵƉĂŶǇĐŽŶƚƌŝďƵƚĞƐ 2014 2013 2014 2013 12%and 3% of gross emoluments of employees to Employees’ LKR LKR LKR LKR WƌŽǀŝĚĞŶƚ&ƵŶĚĂŶĚŵƉůŽǇĞĞƐ͛dƌƵƐƚ&ƵŶĚƌĞƐƉĞĐƟǀĞůǇ͘

Profit/(Loss) on disposal of property, plant & equipment ( 3,045,629) 6 ,294,643 (3,045,629) 6,247,192 Sundry income 2 ,328,944 2 ,715,780 7 ,636,935 6,066,251 Unclaimed creditors written back - - - 13,770 Income on investment 2 20,717,726 6 ,700,000 220,717,726 6,700,00 0 Dividend income 1 07,998,683 - - - 327,999,725 1 5,710,42 3 225,309,032 1 9,027,213

5.FINANCE COSTS Company Group 2014 2013 2014 2013 LKR LKR LKR LKR

Interest Expense on Overdrafts 27,685,103 5 7,203,443 27,685,103 57,203,443 Interest Expenses on Loans & Borrowings 92,209,512 103,306,70 7 92,209,512 103,306,707 Lease Interest 224,196 372,105 224,196 372,105 120,118,812 160,882,25 5 120,118,812 160,882,255

6.FINANCE INCOME Company Group 2014 2013 2014 2013 LKR LKR LKR LKR

Interest income 4,812,813 8 3,934,478 4,812,813 83,934,478 4,812,813 8 3,934,47 8 4,812,813 83,934,478

68 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 69 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

7.PROFIT BEFORE TAX ŽŵƉĂŶǇ 'ƌŽƵƉ 8.1 ZĞĐŽŶĐŝůŝĂƟŽŶďĞƚǁĞĞŶdĂǆǆƉĞŶƐĞƐĂŶĚƚŚĞƉƌŽĚƵĐƚŽĨĂĐĐŽƵŶƟŶŐƉƌŽĮƚŵƵůƟƉůŝĞĚďǇƚŚĞƐƚĂƚƵƚŽƌǇƚĂǆƌĂƚĞŝƐĂƐĨŽůůŽǁĞĚ 2014 2013 2014 2013 Company Group LKR LKR LKR LKR 2014 2013 2014 2013 ĚŵŝŶŝƐƚƌĂƟŽŶǆƉĞŶƐĞƐ LKR LKR LKR LKR Directors' emoluments 32,010,000 29,875,000 32,010,000 29,875,000 Depreciation 95,551,905 84,362,680 114,706,218 101,406,760 ĐĐŽƵŶƟŶŐƉƌŽĮƚďĞĨŽƌĞƚĂǆĨƌŽŵĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ 239,171,457 177,259,774 216,862,868 231,671,419 Amorisation of intangible assets - - 10,655,944 7,775,289 239,171,457 177,259,774 216,862,868 231,671,419 Personnel costs includes - - Gratuity 8,988,907 7,724,659 10,130,289 9,680,208 - EPF & ETF 50,804,115 40,806,674 54,428,078 44,896,192 IncoŵĞƚĂǆƌĂƚĞoĨ28%(2013: 28%) 66,968,008 49,632,737 72,543,412 49,632,737 - Other staff costs 437,848,892 367,676,319 470,489,387 403,799,358 IncoŵĞƚĂǆƌĂƚĞoĨ10%(2013:10%) - - 4,524,187 4,923,493 Donations 1,085,486 5,122,706 1,537,486 5,122,706 IncoŵĞƚĂǆƌĂƚĞoĨ20%(2013:20%) - - - 1,703,018 Audit Fees 1,604,167 1,507,671 2,258,487 2,065,631 ĚũƵƐƚŵĞŶƚŝŶƌĞƐƉĞĐƚƚŽƵƌƌĞŶƚŝŶĐŽŵĞƚĂǆŽĨƉƌĞǀŝŽƵƐǇĞĂƌ - (6,283,546) 1,338,168 (5,804,487) ^ĞůůŝŶŐĂŶĚŝƐƚƌŝďƵƟŽŶǆƉĞŶƐĞƐ TĂǆonĞǆƉoƌƚƐĂlĞƐ@12й;ϮϬϭϯ͗ϭϱйͿ (4,448) (4,448) Transport cost 8,630,379 9,610,282 8,630,379 9,610,282 EĨĨĞcƚonƚĂǆĂďlĞloƐƐ 18,170,087 18,170,087 Marketing & promotions 1 43,025,841 91,177,986 143,025,841 91,186,986 AllowĂďlĞEǆƉĞnƐĞƐ (46,669,808) (37,891,937) (48,900,818) (39,271,708) IncoŵĞĞǆĞŵƉƚĨƌoŵƚĂǆ (93,247,490) (1,263,718) (93,352,817) (1,616,596) NondĞducƚŝďlĞĞǆƉĞnƐĞƐ 54,919,895 47,249,007 60,156,734 50,477,903 ŝǀŝĚĞŶĚdĂǆ - 11,999,854 - 8.INCOME TAX EXPENSE ŽŵƉĂŶǇ 'ƌŽƵƉ EĨĨĞcƚondĞĨĞƌƌĞdƚĂǆ (2,327,701) 13,457,989 (2,195,562) 14,375,435 2014 2013 2014 2013 OƚhĞƌ - 7,738 26,260 (66,141) CƵrrĞnt incŽmĞ taǆ LKR LKR LKR LKR (2,187,008) 64,903,823 24,309,506 74,349,206

Current tax expenseŽŶŽƌĚŝŶĂƌǇĂĐƟǀŝƟĞƐĨŽƌƚŚĞǇĞĂƌ 140,693 57,729,380 14,505,213 65,778,258 ThĞĞĨĨĞcƚŝǀĞŝncoŵĞƚĂǆƌĂƚĞ -0.91% 36.62% 11.21% 32.09% hŶĚĞƌͬ;ŽǀĞƌͿƉƌŽǀŝƐŝŽŶ of current taxes in respect of prior year - ;ϲ͕Ϯϴϯ͕ϱϰϲͿ - ;ϱ͕ϴϬϰ͕ϰϴϳͿ Diǀidend Tax - - 11,999,855 - /ŶĐŽŵĞƚĂǆĞǆƉĞŶƐĞƌĞƉŽƌƚĞĚƉƌĞǀŝŽƵƐůǇϲϰ͕ϵϬϯ͕ϴϮϯϳϰ͕ϯϰϵ͕ϮϬϲ ĞĨĞƌƌĞĚŝŶĐŽŵĞƚĂǆ dƌĂŶƐŝƟŽŶĂůĂĚũƵƐƚŵĞŶƚ Ͳ Ͳ

Deferred taxation charge /(reǀersalͿ ( 2,327,701Ϳ 13,457,989 ;Ϯ͕ϭϵϱ͕ϱϲϮͿ 14,375,435 /ŶĐŽŵĞƚĂǆĞǆƉĞŶƐĞͬ;ŝŶĐŽŵĞͿƌĞƉŽƌƚĞĚ /ŶĐŽŵĞƚĂǆĞǆƉĞŶƐĞƌĞƉŽƌƚĞĚϲϰ͕ϵϬϯ͕ϴϮϯϳϰ͕ϯϰϵ͕ϮϬϲ in the income statement ;Ϯ͕ϭϴϳ͕ϬϬϴͿ 64,903,823 24,309,506 74,349,206

^ƚĂƚĞŵĞŶƚŽĨKƚŚĞƌŽŵƉƌĞŚĞŶƐŝǀĞ/ŶĐŽŵĞ ŽŵƉĂŶǇ 'ƌŽƵƉ ĞīƌƌĞĚŝŶĐŽŵĞƚĂǆƌĞůĂƚĞĚƚŽŝƚĞŵƐĐŚĂƌŐĞĚ 2014 2013 2014 2013 or credited directly to equity during the year LKR LKR LKR LKR

Net gain on reǀaluation of building - 4,691,202 - 4,691,202 ĐƚƵĂƌŝĂůŐĂŝŶƐĂŶĚ;ůŽƐƐĞƐͿŽŶĚĞĮŶĞĚďĞŶĞĮƚƉůĂŶs ;Ϯ͕ϯϴϭ͕ϰϳϱͿ - ;Ϯ͕ϴϰϲ͕ϵϱϬͿ - Income taxĞǆƉĞŶƐĞͬ;ŝŶĐŽŵĞͿƌĞƉŽƌƚĞĚŝŶ (2,381,475Ϳ 4,691,202 ;Ϯ͕ϴϰϲ͕ϵϱϬͿ 4,691,202 ŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ

70 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 71 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

8. INCOME TAX EXPENSE (Contd...) ϵ͘WZKWZdz͕W>EdΘYh/WDEd

8.2 Deferred Tax Assets, Liabilities and Income Tax Relates to the Followings; ϵ͘ϭŽŵƉĂŶǇ Balance ĚĚŝƟŽŶƐ Balance ƐĂƚĐƋƵŝƐŝƟŽŶƐΘsĞƌŝĮĐĂƟŽŶŝƐƉŽƐĂůƐŝƐĐĂƌĚĞĚƐĂƚ Company Group ϵ͘ϭ͘ϭ'ƌŽƐƐĐĂƌƌǇŝŶŐĂŵŽƵŶƚƐ 01-AƉr-1ϯ dranƐĨerƐ ϯϭͲDĂƌͲϭϰ Statement of Statement of &ŝŶĂŶĐŝĂůWŽƐŝƟŽŶ&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶ At cost LKR LKR LKR LKR LKR LKR 2014 2013 2014 2013 Deferred Tax Liability LKR LKR LKR LKR Land scaping 8- 84,560 - - - 884,560 Building - lease hold 9-2,085,753 - - - 92,085,753 Capital allowances for tax purposes 51,780,473 51,309,682 54,128,046 50,493,167 Office equipment 1974,300,396 16,020,76 7,389,744 (2,534,000) (12,900,225) 182,276,68 4 ZĞǀĂůƵĂƟŽŶŽĨWƌŽƉĞƌƚǇ͕WůĂŶƚĂŶĚƋƵŝƉŵĞŶt 6,196,117 6,196,117 6,196,117 6,196,117 Fixtures - other 7-5,192,805 - - (37,114,022) 3 8,078,78 3 57,976,590 57,505,799 60,324,162 56,689,284 Deferred Tax Assets Fixtures - air conditions 1-2,915,663 - - (357,496) 1 2,558,16 7 DefineĚ Benefit Wlans (13,689,833) (9,289,405) (15,153,314) (9,225,242) Furniture 873,067,960 4,352,01 2,182,285 - (23,672,241) 6 5,930,02 0 Lease Rent (263,306) (604,109) (263,306) (604,109) Office equipment- other 5-,431,661 1,329,661 - (1,233,408) 5,527,91 4

DeferreĚ Revenue ( 1,416,310) (2,521,333) (1,416,310) (2,521,333) Shop fittings - fixtures 2450,807,967 83,818,31 14,507,302 - (35,531,717) 313,601,86 6 Tax Losses - - (1,969,779) - Shop fittings - mobiles 3-1,310,545 3,361,516 - (13,285,823) 2 1,386,23 8 Operating lease (Straight line) (12,728,338) (10,502,972) (12,728,338) (10,502,972) Motor vehicles 238,805,496 10,328,29 - - - 39,133,789 (28,097,787) (22,917,820) (31,531,048) (22,853,657) Motor vehicles -lease 4-,718,750 - - - 4,718,750 Net DeferreĚ Tax LiabilitǇ 2 9,878,803 34,587,979 28,793,115 33,835,627 759,521,556 114,519,39 2 28,770,508 (2,534,000) (124,094,930) 776,182,52 6

At valuation

Company Group Land ͲƚǀĂůƵĂƟŽŶ 1,491,120,000 1 6 2 , 7 1 8 ,42 5 0 -- 1,653,838,425

Income Statement Income Statement Building ͲƚǀĂůƵĂƟŽŶ 146,030,000 - 0 -- 146,030,000

Total Value of Depreciable Assets 1,637,150,000 162,718,42 5 - - - 1,799,868,425 2014 2013 2014 2013 Deferred Tax Liability LKR LKR LKR LKR ĂůĂŶĐ/ŶĐƵƌƌĞĚsĞƌŝĮĐĂƟŽŶŝƐƉŽƐĂůdƌĂŶƐĨĞƌƌĞĚĂůĂŶĐĞ Capital Allowances for Tax purposes 470,792 18,933,847 445,194 17,916,896 9.1.2 In tŚe CŽurƐe ŽĨ CŽnƐtructiŽn A Ɛ a t during ƐĂƚ - ϬϭͲƉƌͲϭϯƚŚĞǇĞĂƌ ϯϭͲDĂƌͲϭϰ 470,792 18,933,847 445,194 17,916,896 LKR LKR LKR LKR LKR LKR Deferred tax assets

DefineĚ Benefit Wlans ( 2,018,953) (1,732,203) (1,870,883) (1,401,416) Capital work in progre s s 11,967,811 298,662,519 - - (306,008,324) 4,622,00 6

Lease Rent 340,803 237,300 340,803 237,300 11,967,811 298,662,519 - - (306,008,324) 4,622,006 DeferreĚ Revenue 1,105,023 (2,179,773) 1,105,023 (2,179,773) Operating lease (Straight line) ( 2,225,366) (1,801,180) (2,225,366) (1,801,180) AccuŵulateĚ tax losses - - 9,668 1,603,609 dŽtal GrŽƐƐ CarrǇing AŵŽunt 26 ,408,639,367 575,900,33 28,770,508 (2,534,000) (430,103,255) 2,580,672,95 7 ĞĨĞƌƌĞĚ/ŶĐŽŵĞdĂǆ;/ŶĐŽŵĞͿͬǆƉĞŶƐĞ (2,327,701) 13,457,990 (2,195,561) 14,375,435

72 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 73 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

9. PROPERTY, PLANT & EQUIPMENT (Contd...) 9. PROPERTY, PLANT & EQUIPMENT (Contd...)

9.1.4 Net Book Value 2014 2013 At Cost LKR LKR Balance Charge for Disposals Discarded Balance

9.1.3 Depreciation as at the year as at Land scaping -- At Cost 01-Apr-13 31-Mar-14 Building - lease hold 41,410,242 55,721,60 1 LKR KĸĐĞĞƋƵŝƉŵĞŶƚ 98,952,315 96,184,89 3 &ŝǆƚƵƌĞƐͲŽƚŚĞƌ 4,468,981 12,920,04 6 Land scaping 884,560 - - - 884,560 &ŝǆƚƵƌĞƐͲĂŝƌĐŽŶĚŝƟŽŶƐ 451,254 8 62,70 4 Building - lease hold 36,364,152 14,311,359 - - 50,675,511 &ƵƌŶŝƚƵƌĞ 39,862,452 52,351,91 2 Office equipment 78,115,503 15,636,459 (2,280,600) (8,1 4 6 , 9 9 3 ) 8 3,324,369 KĸĐĞĞƋƵŝƉŵĞŶƚͲŽƚŚĞƌ 3,563,228 3,240,97 3 Fixtures - other 62,272,759 4,329,146 - (32,992,103) 3 3,609,80 3 ^ŚŽƉĮƫŶŐƐͲĮǆƚƵƌĞƐ 211,913,182 1 58,187,19 0 Fixtures - air conditions 152,052,959 3 90,59 - (336,641) 1 2,106,91 3 ^ŚŽƉĮƫŶŐƐͲŵŽďŝůĞƐ 7,620,336 11,924,91 4 Furniture 30,716,048 7,264,956 - (11,913,436) 2 6,067,56 9 DŽƚŽƌǀĞŚŝĐůĞƐ 21,139,980 16,732,45 8 Office equipment- other 24,190,688 3 01,92 - (527,926) 1,964,68 7 DŽƚŽƌǀĞŚŝĐůĞƐͲůĞĂƐĞ 786,458 1,730,208 Shop fittings - fixtures 92,620,777 39,146,913 - (30,079,006) 101,688,68 4 430,168,427 4 09,856,89 9 Shop fittings - mobiles 19,385,631 2,621,354 - (8,241,083) 1 3,765,90 2 ƚǀĂůƵĂƟŽŶ Motor vehicles 12,073,038 5,920,772 - - 17,993,810 Land 1,653,838,425 1,491,120,00 0 Motor vehicles -lease 20,988,542 9 43,75 - - 3,932,292 Building 140,960,015 1 45,644,69 2 349,664,657 90,867,228 (2,280,600) (92,237,186) 346,014,09 9 Total Value of Depreciable Assets 1,794,798,440 1,636,764,69 2 ƚǀĂůƵĂƟŽŶ

Building ͲƚǀĂůƵĂƟŽŶ 385,308 4,684,677 - 5,069,985 ϵ͘ϭ͘ϱ/ŶƚŚĞĐŽƵƌƐĞŽĨĐŽŶƐƚƌƵĐƟŽŶƐ 385,308 4,684,677 - - 5,069,985

ĂƉŝƚĂůǁŽƌŬŝŶƉƌŽŐƌĞƐƐ 4,622,006 11,967,81 1 4,622,006 11,967,81 1

Total Gross Carrying Amount 2,229,588,873 2,058,589,40 2

9.1.6 dŚĞĐŽŵƉĂŶǇƵƐĞƐƚŚĞƌĞǀĂůƵĂƟŽŶŵŽĚĞůŽĨŵĞĂƐƵƌĞŵĞŶƚŽĨůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘dŚĞĐŽŵƉĂŶǇĞŶŐĂŐĞĚĐŚĂƌƚĞƌĞĚǀĂůƵĞƌ Dͬ^W͘<ĂůƵŐĂůĂŐĞĚĂƌĂΘƐƐŽĐŝĂƚĞƐĂŶĂĐĐƌĞĚŝƚĞĚŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĞƌ͕ƚŽĚĞƚĞƌŵŝŶĞƚŚĞĨĂŝƌǀĂůƵĞŽĨŝƚƐůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘ &ĂŝƌǀĂůƵĞŝƐĚĞƚĞƌŵŝŶĞĚďǇƌĞĨĞƌĞŶĐĞƚŽŵĂƌŬĞƚͲďĂƐĞĚĞǀŝĚĞŶĐĞ͘sĂůƵĂƟŽŶƐĂƌĞďĂƐĞĚŽŶĂĐƟǀĞŵĂƌŬĞƚƉƌŝĐĞƐ͕ĂĚũƵƐƚĞĚĨŽƌĂŶǇ ĚŝīĞƌĞŶĐĞŝŶƚŚĞŶĂƚƵƌĞ͕ůŽĐĂƟŽŶŽƌĐŽŶĚŝƟŽŶŽĨƚŚĞƐƉĞĐŝĮĐƉƌŽƉĞƌƚǇ͘dŚĞĚĂƚĞŽĨƚŚĞŵŽƐƚƌĞĐĞŶƚƌĞǀĂůƵĂƟŽŶǁĂƐϬϭ^ĞƉƚĞŵ- ďĞƌϮϬϭϮ͘dŚĞƉƌĞǀŝŽƵƐƌĞǀĂůƵĂƟŽŶǁĂƐŽŶϯϭKĐƚŽďĞƌϮϬϬϵ͘

74 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 75 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

ƵŵƵůĂƟǀĞ ĚĞƉƌĞĐŝĂƟŽŶEĞƚĐĂƌƌǇŝŶŐEĞƚĐĂƌƌǇŝŶŐ /ĨĂƐƐĞƚƐǁĞƌĞĂŵŽƵŶƚĂŵŽƵŶƚ Class of asset CŽƐƚ ĐaƌƌŝĞdaƚĐŽƐƚ 2014 2013 >

Building 138,011,529 23,118,604 114,892,925 1 18,343,21 3 L-and 569,706,011 569,706,011 5 69,706,01 1

9.1.7 >ĂŶĚĂŶĚďƵŝůĚŝŶŐƐǁŝƚŚĂĐĂƌƌǇŝŶŐǀĂůƵĞŽĨ>

9.1.8 The ĐĂƌƌǇŝŶg value oĨŵŽƚŽƌvehicleƐ undeƌ ĮŶĂŶĐe ůĞĂƐe ĐŽŶƚƌĂĐƚƐ at 31 DĂƌĐh 2014 ǁĂƐ LKR 786,459/с ;ϮϬϭ3 - LKR 1,730,208/сͿ. NoĂĚĚŝƟŽŶƐ ĚƵƌŝŶgthe ǇĞĂƌ ĨŽƌ ŵŽƚŽƌ vehicleƐ undeƌ ĮŶĂŶĐĞůĞĂƐĞĐŽŶƚƌĂĐƚƐ͘>ĞĂƐĞĚĂƐƐĞƚƐĂƌĞ ƉůĞĚŐĞĚĂƐƐĞĐƵƌŝƚǇĨŽƌƚŚĞƌĞůĂƚĞĚĮŶĂŶĐĞůĞĂƐĞůŝĂďŝůŝƟĞƐ͘

9.1.9 dŚĞĞǆƚĞŶƚĂŶĚƚŚĞůŽĐĂƟŽŶŽĨƚŚĞĞŶƟƚǇ͛ƐůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ;ŽŵƉĂŶǇͿĂƌĞƐŚŽǁŶďĞůŽǁ

ĚĚƌĞƐƐ >ĂŶĚͬƵŝůĚŝŶŐsĂůƵĂƟŽŶǆƚĞŶƚ

No. 10, Waƌd Place, oloŵďo 07. Land & Building Revalued R 1-P 39.58+R0-P9.91 No. 15, .W.W. Kannangaƌa Maǁatha, oloŵďo 07. Land Revalued R 2-P36.12 No. 21/5, .W.W.Kannangaƌa Maǁatha, oloŵďo 07. Land Revalued P.13.60 No 29A, JaǇathilaka Maǁatha, Panaduƌa Land & Building Revalued R.1 -P 2.16 No.25/2 ,3,5,6 & 6B,.W.W. Kannangaƌa Maǁatha, oloŵďo 07. Land ŽƐƚ P.29.54

amounts

Depreciable

76 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 77 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

ŽŵƉĂŶǇ 'ƌŽƵƉ 10. INTANGIBLE ASSETS 2014 2013 2014 2013 Computer software LKR LKR LKR LKR

Cost As at 1 April - - 48,830,634 43,357,18 6 ĚĚŝƟŽŶƐ -- 7,269,082 5,473,44 8 As at 31 March - - 56,099,716 48,830,63 4 ϵ͘Ϯ͘ϲdŚĞŐƌŽƵƉƵƐĞƐƚŚĞƌĞǀĂůƵĂƟŽŶŵŽĚĞůŽĨŵĞĂƐƵƌĞŵĞŶƚŽĨůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘dŚĞŐƌŽƵƉĞŶŐĂŐĞĚĐŚĂƌƚĞƌĞĚǀĂůƵĞƌDͬ^ Amortization W͘<ĂůƵŐĂůĂŐĞĚĂƌĂΘƐƐŽĐŝĂƚĞƐĂŶĚDͬ^<͘:͘dŝƐƐĞƌĂ;ŚĂƌƚĞƌĞĚsĂůƵĂƟŽŶ^ƵƌǀĞǇŽƌͿƚŚĞĂĐĐƌĞĚŝƚĞĚŝŶĚĞƉĞŶĚĞŶƚǀĂůƵĞƌƐ͕ƚŽ ĚĞƚĞƌŵŝŶĞƚŚĞĨĂŝƌǀĂůƵĞŽĨŝƚƐůĂŶĚĂŶĚďƵŝůĚŝŶŐƐ͘&ĂŝƌǀĂůƵĞŝƐĚĞƚĞƌŵŝŶĞĚďǇƌĞĨĞƌĞŶĐĞƚŽŵĂƌŬĞƚͲďĂƐĞĚĞǀŝĚĞŶĐĞ͘sĂůƵĂƟŽŶƐ As at 1 April - - 37,773,451 29,998,16 2 ĂƌĞďĂƐĞĚŽŶĂĐƟǀĞŵĂƌŬĞƚƉƌŝĐĞƐ͕ĂĚũƵƐƚĞĚĨŽƌĂŶǇĚŝīĞƌĞŶĐĞŝŶƚŚĞŶĂƚƵƌĞ͕ůŽĐĂƟŽŶŽƌĐŽŶĚŝƟŽŶŽĨƚŚĞƐƉĞĐŝĮĐƉƌŽƉĞƌƚǇ͘dŚĞ ŵŽƌƟǌĞĚĚƵƌŝŶŐƚŚĞǇĞĂƌ -- 10,655,944 7,775,28 9 ĚĂƚĞŽĨƚŚĞŵŽƐƚƌĞĐĞŶƚƌĞǀĂůƵĂƟŽŶǁĂƐϬϭ^ĞƉƚĞŵďĞƌϮϬϭϮ͘dŚĞƉƌĞǀŝŽƵƐƌĞǀĂůƵĂƟŽŶǁĂƐŽŶϯϭKĐƚŽďĞƌϮϬϬϵ͘ ŝƐƉŽƐĂůƐͬdƌĂŶƐĨĞƌƐ -- - - As at 31 March - - 48,429,395 37,773,451

^ŽŌǁĂƌĞ/ŵƉůĞŵĞŶƚĂƟŽŶ 68,469,089 ŝŶWƌŽŐƌĞƐƐ

dŽƚĂůEĞƚďŽŽŬǀĂůƵĞ 76,139,410 11,057,183

11. INVESTMENT IN SUBSIDIARIES ŽŵƉĂŶǇ 'ƌŽƵƉ 2014 2013 2014 2013 й,ŽůĚŝŶŐ LKR LKR LKR LKR

OdĞl WrŽpĞrtiĞs (Wvt) Ltd. 100% 108,100,000 108,100,000 - - OdĞl /ŶĨŽrŵatiŽŶ dĞchŶŽlŽŐy SĞrvicĞs (Wvt) Ltd 100% 10 10 - - OdĞl LaŶka (Wvt) Ltd 100% 270,000,020 270,000,020 - - OdĞl ApparĞls (Wvt) Ltd 100% 1 ,000 1 ,000 - - BSL /ŶtĞrŶatiŽŶal (Wvt) Ltd 100% 1 ,000,000 1 ,000,000 - - GrĞĞŶĨild dradiŶŐ (Wvt) Ltd 100% 10 10 - 379,101,040 379,101,040 - - ůůŽǁĂŶĐĞĨŽƌ/ŵƉĂŝƌŵĞŶƚŝŶ/ŶǀĞƐƚŵĞŶƚƐŝŶ^ƵďƐŝĚŝĂƌŝĞƐ (1,000,000) (1,000,000 ) - - 378,101,040 378,101,040 -

12. INVENTORIES ŽŵƉĂŶǇ 'ƌŽƵƉ 31-03-14 31-03-13 31-03-14 31-03-13 2014 2013 2014 2013 Cost LKR LKR LKR LKR Cost

&ŝŶŝƐŚĞĚ'ŽŽĚƐ 1,373,991,851 1,202,019,77 9 1 ,382,412,343 1,216,138,762 'ŽŽĚƐŝŶdƌĂŶƐŝƚ 15,494,296 18,713,38 2 15,494,296 18,713,382 AllŽǁaŶcĞ ĨŽr ŽbsŽlĞtĞ aŶd slŽǁ ŵŽviŶŐ itĞŵs ( 46,631,081) ( 1 5,986,382) ( 4 6 , 6 31,081) ( 1 5 , 9 8 6 ,382) dŽtal iŶvĞŶtŽriĞs at thĞ lŽǁĞr ŽĨ cŽst aŶd NRV 1 , 3 42,855,066 1 , 2 0 4,746,779 1 , 3 5 1 , 2 75,558 1 , 2 1 8 , 8 65,762

ƵƌŝŶŐƚŚĞĮŶĂŶĐŝĂůǇĞĂƌ͕ƚŚĞ'ƌŽƵƉĐĂƌƌŝĞĚŽƵƚĂƌĞǀŝĞǁŽĨƚŚĞƌĞĂůŝƐĂďůĞǀĂůƵĞƐŽĨŝƚƐŝŶǀĞŶƚŽƌŝĞƐĂŶĚƚŚĞƌĞǀŝĞǁůĞĚƚŽƚŚĞ ƌĞĐŽŐŶŝƟŽŶŽĨŝŶǀĞŶƚŽƌŝĞƐǁƌŝƩĞŶĚŽǁŶĂŵŽƵŶƚĞĚƚŽ>

78 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 79 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

13. TRADE AND OTHER RECEIVABLES Company Group 16. DEFERRED LIABILITY Company Group 2014 2013 2014 2013 2014 2013 2014 2013 LKR LKR LKR LKR LKR LKR LKR LKR 16.1 Deferred Revenue Financial Assets - Loans & Receivables Trade receivables 16,073,157 37,487,7 9 3 16,832,988 37,542,893 Loyalty programe Other receivables 30,560,003 1 7 ,334,73 4 3 0 ,560,003 1 7 , 3 3 4 , 7 3 4As at 1 April 9,004,763 1 ,219,85 9 9 ,004,763 1 , 2 19,859 46,633,160 5 4 ,822,52 7 4 7 ,392,991 5 4 , 8 7 7 , 6 2 7Deferred during the year 8,549,044 10,365,09 9 8 ,549,044 1 0 , 365,099 Non Financial Assets Released to the income statement (12,495,558) (2,580,196) ( 1 2 ,495,558) ( 2 , 5 8 0 , 1 9 6 ) Advances, Deposits & Prepayments 2 2 2,264,198 1 2 4 ,948,880 2 3 2 ,208,049 1 3 4 , 9 4 3 , 7 43As at 31 March 5,058,249 9 ,004,76 3 5 ,058,249 9 , 0 0 4 , 7 6 3

268,897,358 1 7 9 ,771,40 7 2 7 9 ,601,040 1 8 9 , 8 2 1 , 3 7016.2 Deferred Expenditure

13.1 Trade receivables as at 31st March 2014 & 2013 are outstanding for less than 30 days KƉĞƌĂƟŶŐůĞĂƐĞ As at 1 April 37,510,613 31,077,82 9 3 7 ,510,613 3 1 , 0 7 7 , 8 2 9

14. OTHER FINANCIAL ASSETS Company Group Charged to the income statement 7 ,947,737 6 ,432,785 7 ,947,737 6 , 4 3 2 , 7 8 5 As at 31 March 45,458,351 37,510,61 3 4 5 ,458,351 3 7 , 5 1 0 , 6 1 3 2014 2013 2014 2013 &ĂŝƌsĂůƵĞƚŚƌŽƵŐŚWƌŽĮƚĂŶĚ>ŽƐƐ LKR LKR LKR LKR

Total Deferred Liability 50,516,599 46,515,37 6 5 0 ,516,599 4 6 , 5 1 5 , 3 7 6 Investment in short term instruments 2 , 072,417,726 2,006,700,000 2,072,417,726 2 , 0 0 6,700,000

>ŽĂŶƐĂŶĚZĞĐĞŝǀĂďůĞƐ ^ƚĂīůŽĂŶ 3,783,589 6 ,219,25 4 3 ,783,589 6 , 2 1 9,254 Refundable deposit 21,642,166 26,519,25 1 21,642,166 2 6 , 5 1 9,251

2,097,843,481 2 , 0 3 9,438,50 5 2 , 0 9 7,843,481 2 , 0 3 9 , 4 3 8,505

Total current 2,079,979,997 2 , 0 0 8,684,19 1 2 , 0 7 9,979,997 2 , 0 0 8 , 6 8 4,191 Total Non current 17,863,484 3 0,754,31 4 1 7,863,484 3 0 , 7 5 4 , 3 14

15. AMOUNTS DUE FROM RELATED PARTIES Company Group 2014 2013 2014 2013 Financial Assets - Loans & Receivables LKR LKR LKR LKR

Odel Apparels (Pvt) Ltd 14,594,539 27,317,62 6 - - Odel Lanka (Pvt) Ltd 131,064,025 80,033,82 1 - - Greenfield Trading (Pvt) Ltd 136,587 81,649 - - BSL International (Pvt) Ltd 4 ,209,748 2 ,937,444 - - 150,004,898 1 10,370,54 0 - - Less: Provision for doubtful debt - Odel Lanka (65,532,013) ( 45,183,055 ) - - Less: Provision for doubtful debt - BSL (4,209,748) (2,937,444 ) - 80,263,138 62,250,04 1 - -

ƵƌŝŶŐƚŚĞĮŶĂŶĐŝĂůǇĞĂƌ͕ƚŚĞŽŵƉĂŶǇƌĞĐŽŐŶŝƐĞĚĂŶŝŵƉĂŝƌŵĞŶƚůŽƐƐŽĨ>

80 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 81 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

ϭϳ͘/EdZ^dZ/E'>KE^EKZZKt/E'^;KDWEzͬ'ZKhWͿ 18. RETIREMENT BENEFIT LIABILITY ŽŵƉĂŶǇ 'ƌŽƵƉ 2014 2013 2014 2013 ϮϬϭϰ ϮϬϭϰ ϮϬϭϰ ϮϬϭϯ ϮϬϭϯ ϮϬϭϯ ĞĮŶĞĚĞŶĞĮƚWůĂŶŽƐƚƐͲ'ƌĂƚƵŝƚǇ LKR LKR LKR LKR ZĞƉĂǇĂďůĞ ZĞƉĂǇĂďůĞ dŽƚĂů ZĞƉĂǇĂďůĞ ZĞƉĂǇĂďůĞ dŽƚĂů &ŝŶĂŶĐŝĂů>ŝĂďŝůŝƟĞƐͲ tŝƚŚŝŶϭǇĞĂƌ ŌĞƌϭǇĞĂƌ >ŽĂŶƐΘŽƌƌŽǁŝŶŐƐ >ŝƐǀĂůƵĞĚďǇDƌ͘WŝǇĂů'ŽŽŶĂƟůůĞŬĞ͕ǁŚŽŝƐĂĨĞůůŽǁŵĞŵďĞƌŽĨƚŚĞƐŽĐŝĞƚǇŽĨ 577,506,504 2 , 2 12,560,45 9 ( 1 ,838,580,027 ) 9 5 1 , 4 8 6 , 9 36ĂĐƚƵĂƌŝĞƐ;h^ͿĂŶĚĂŵĞŵďĞƌŽĨƚŚĞŵĞƌŝĐĂŶĐĂĚĞŵǇŽĨĐƚƵĂƌŝĞƐ͘ĞĮŶĞĚ>ŝĂďŝůŝƚǇŝƐǀĂůƵĞĚĂƐĂƚϯϭƐƚDĂƌĐŚϮϬϭϰĂŶĚƚŚĞ ƉƌŝŶĐŝƉĂůĂĐƚƵĂƌŝĂůĂƐƐƵŵƉƟŽŶƐƵƐĞĚĂƌĞĂƐĨŽůůŽǁƐ͘

ϭϳ͘Ϯ >ŽŶŐƚĞƌŵĮŶĂŶĐĞůĞĂƐĞĐŽŵŵŝƚŵĞŶƚƐ WƌŝŶĐŝƉĂůĂĐƚƵĂƌŝĂůĂƐƐƵŵƉƟŽŶƐ ŽŵƉĂŶǇ 'ƌŽƵƉ 2014 2013 2014 2013 ϮϬϭϰ ϮϬϭϰ ϮϬϭϰ ϮϬϭϯ ϮϬϭϯ ϮϬϭϯ LKR LKR LKR LKR ZĞƉĂǇĂďůĞ ZĞƉĂǇĂďůĞ dŽƚĂů ZĞƉĂǇĂďůĞ ZĞƉĂǇĂďůĞ dŽƚĂů tŝƚŚŝŶϭǇĞĂƌ ŌĞƌϭǇĞĂƌ >

^ƚĂīƚƵƌŶŽǀĞƌ F-inance cost allocated to fut u r e p e r i o d ( 5 7 , 4 7 7 ) (57,477) ( 2 4 9 , 8 4 7 ) (31,825) ( 2 81,672) Age dƵƌŶŽǀĞƌ dƵƌŶŽǀĞƌ dƵƌŶŽǀĞƌ dƵƌŶŽǀĞƌ 20 30% 30% 30% 30% Net liability 940,380 - 940,380 1 , 1 9 1 , 5 0 2 966,031 2,157,533 25 30% 30% 30% 30% 30 20% 20% 20% 20% ϭϳ͘ϯdĞƌŵƐŽĨƚŚĞůŽĂŶƐ 35 10% 10% 10% 10% >ĞŶĚŝŶŐ/ŶƐƟƚƵƟŽŶzĞĂƌ>ŽĂŶEĂƚƵƌĞŽĨĨĂĐŝůŝƚǇ ^ĞĐƵƌŝƚǇĞĐƵƌŝƚǇ ZĞƉĂǇŵĞŶƚdĞƌŵ ŵŽƵŶƚ 40 5% 5% 5% 5% Bank of Ceylon 2012 / 2013 / 2014 275Mn Medium term loan Property at 475/32, 6 Years 45 2% 2% 2% 2% <ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝǇĂ KǁŶĞĚďǇKĚĞůWƌŽƉĞƌƟĞƐ;WǀƚͿ>ƚĚ ZĞƟƌĞŵĞŶƚŐĞ 55 Years 55 Years 55 Years 55 Years ,ĂƩŽŶEĂƟŽŶĂůĂŶk 2011 / 2012 / 2013/2014 200Mn Medium term loan Property at 271-271F, Over a period of 06 years in <ĂĚƵǁĂůĂZŽĂĚ͕dŚĂůĂŶŐĂŵĂ͕ 59 equal monthly ϭϴ͘ϯ^ĞŶƐŝƟǀŝƚǇŽĨƐƐƵŵƉƟŽŶƐŵƉůŽǇĞĚŝŶĐƚƵĂƌŝĂůsĂůƵĂƟŽŶ instalments ĂƩĂƌĂŵƵůůĂŽǁŶĞĚďǇ dŚĞĨŽůůŽǁŝŶŐƚĂďůĞĚĞŵŽŶƐƚƌĂƚĞƐƚŚĞƐĞŶƐŝƟǀŝƚǇƚŽĂƌĞĂƐŽŶĂďůǇƉŽƐƐŝďůĞĐŚĂŶŐĞŝŶƚŚĞŬĞǇĂƐƐƵŵƉƟŽŶƐĞŵƉůŽǇĞĚǁŝƚŚĂůů Odel Lanka (Pvt) Ltd ŽƚŚĞƌǀĂƌŝĂďůĞƐŚĞůĚĐŽŶƐƚĂŶƚŝŶƚŚĞĞŵƉůŽǇŵĞŶƚďĞŶĞĮƚůŝĂďŝůŝƚǇŵĞĂƐƵƌĞŵĞŶƚ͘

DFCC Bank 2011 / 2012 / 2013 /2014 200Mn Medium term loan Property at 15, 57 equal monthly instalments C.W.W Kannangara Mw. ;ĂƉŝƚĂůͿĂŌĞƌĂŐƌĂĐĞ dŚĞƐĞŶƐŝƟǀŝƚǇŽĨƚŚĞŽŵƉƌĞŚĞŶƐŝǀĞ/ŶĐŽŵĞ^ƚĂƚĞŵĞŶƚĂŶĚƚŚĞ^ƚĂƚĞŵĞŶƚŽĨ&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶŝƐƚŚĞĞīĞĐƚŽĨƚŚĞĂƐƐƵŵĞĚ

Colombo 07. period of 03 months ĐŚĂŶŐĞƐŝŶĚŝƐĐŽƵŶƚƌĂƚĞĂŶĚƐĂůĂƌǇŝŶĐƌĞŵĞŶƚƌĂƚĞŽŶƚŚĞƉƌŽĮƚĂŶĚůŽƐƐƐΘĞŵƉůŽǇŵĞŶƚďĞŶĞĮƚŽďůŝŐĂƟŽŶĨŽƌƚŚĞǇĞĂƌ͘

DFCC Bank 2012 / 2013 /2014 96Mn Medium term loan Property at 15, 84 equal monthly instalments C.W.W Kannangara Mw. ;ĐĂƉŝƚĂůͿĂŌĞƌĂŐƌĂĐĞ ƐƐƵŵƉƟŽŶƐ ŝƐĐŽƵŶƚZĂƚĞ ^ĂůĂƌǇ/ŶĐƌĞŵĞŶƚZĂƚĞ Colombo 07 and period of 12 months from ƚŚĞĚĂƚĞŽĨĮƌƐƚ Ϯϵ͘:ĂǇĂƚŚŝůĂŬĂĂƩĂƌĂŵƵůůĂ ϭй/ŶĐƌĞĂƐĞϭйĞĐƌĞĂƐĞ ϭй/ŶĐƌĞĂƐĞϭйĞĐƌĞĂƐĞ disbursement owned by Mawatha Panadura Impact on defined benefit obligation - Company ( 3 ,714,148) 4,246, 1 5 3 4 , 5 3 3,363 (4,028,143) Union Bank 2013 / 2014 125Mn Short term Loan Property at No.10, 3 Months Ward Place, Colombo 07. Impact on defined benefit obligation - Group ( 4 ,529,328) 5 , 2 0 8, 0 2 5 5 , 5 2 2,116 (4,878,085) DFCC Bank 2013 / 2014 100Mn Short term Loan Property at No.10, Monthly Ward Place, Colombo 07.

Seylan Bank 2013 / 2014 300Mn Short term Loan - 3 Months

82 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 83 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

19. TRADE AND OTHER PAYABLES Company 'ƌŽƵƉ 23. FINANCIAL ASSETS & LIABILITIES - FAIR VALUES 2014 2013 2014 2013 LKR LKR LKR LKR 23.1 dŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞĮŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƟĞƐŝƐŝŶĐůƵĚĞĚĂƚƚŚĞĂŵŽƵŶƚĂƚǁŚŝĐŚƚŚĞŝŶƐƚƌƵŵĞŶƚĐŽƵůĚďĞĞǆĐŚĂŶŐĞĚŝŶ ĂĐƵƌƌĞŶƚƚƌĂŶƐĂĐƟŽŶďĞƚǁĞĞŶǁŝůůŝŶŐƉĂƌƟĞƐ͕ŽƚŚĞƌƚŚĂŶŝŶĂĨŽƌĐĞĚŽƌůŝƋƵŝĚĂƟŽŶƐĂůĞ͘

&ŝŶĂŶĐŝĂů>ŝĂďŝůŝƟĞƐ dŚĞĨŽůůŽǁŝŶŐŵĞƚŚŽĚƐĂŶĚĂƐƐƵŵƉƟŽŶƐǁĞƌĞƵƐĞĚƚŽĞƐƟŵĂƚĞƚŚĞĨĂŝƌǀĂůƵĞƐ͗ Trade Payables 262,369,484 265,827,299 297,467,692 265,551,557 /ŶǀĞƐƚŵĞŶƚŝŶƐŚŽƌƚƚĞƌŵŝŶƐƚƌƵŵĞŶƚƐ͕ĐĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐ͕ƐƚĂīůŽĂŶƐ͕ƌĞĨƵŶĚĂďůĞĚĞƉŽƐŝƚƐ͕ƚƌĂĚĞƌĞĐĞŝǀĂďůĞƐ͕ƚƌĂĚĞ Sundry Creditors 127,576,596 133,003,400 127,576,596 133,003,400 ƉĂǇĂďůĞƐĂŶĚŽƚŚĞƌĐƵƌƌĞŶƚůŝĂďŝůŝƟĞƐĂƉƉƌŽǆŝŵĂƚĞƚŚĞŝƌĐĂƌƌǇŝŶŐĂŵŽƵŶƚƐ 389,946,080 398,830,699 425,044,288 398,554,957 dŚĞĨĂŝƌǀĂůƵĞŽĨůŽĂŶƐĨƌŽŵďĂŶŬƐ͕ŽďůŝŐĂƟŽŶƐƵŶĚĞƌĮŶĂŶĐĞůĞĂƐĞƐ͕ĂƐǁĞůůĂƐŽƚŚĞƌŶŽŶͲĐƵƌƌĞŶƚĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐŝƐĞƐƟŵĂƚĞĚ EŽŶ&ŝŶĂŶĐŝĂů>ŝĂďŝůŝƟĞƐ ďǇĚŝƐĐŽƵŶƟŶŐĨƵƚƵƌĞĐĂƐŚŇŽǁƐƵƐŝŶŐƌĂƚĞƐĐƵƌƌĞŶƚůǇĂǀĂŝůĂďůĞĨŽƌĚĞďƚŽŶƐŝŵŝůĂƌƚĞƌŵƐ͕ĐƌĞĚŝƚƌŝƐŬĂŶĚƌĞŵĂŝŶŝŶŐŵĂƚƵƌŝƟĞƐ͘ Tax & Accrued Expenses 134,400,612 116,475,524 142,793,325 125,509,775 ^ĞƚŽƵƚďĞůŽǁŝƐĂĐŽŵƉĂƌŝƐŽŶďǇĐůĂƐƐŽĨƚŚĞĐĂƌƌǇŝŶŐĂŵŽƵŶƚƐĂŶĚĨĂŝƌǀĂůƵĞŽĨƚŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐƚŚĂƚĂƌĞ ĐĂƌƌŝĞĚŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ 134,400,612 116,475,524 142,793,325 125,509,775 524,346,692 515,306,223 567,837,613 524,064,732 Carrying Amount Fair Value 2014 2013 2014 2013 Interest bearing loans and Borrowings LKR LKR LKR LKR 20. AMOUNTS DUE TO RELATED PARTIES Company 'ƌŽƵƉ Finance Lease 940,380 2,157,533 948,23 1 2,072,497 2014 2013 2014 2013 &ůŽĂƟŶŐͬ&ŝǆĞĚZĂƚĞŽƌƌŽǁŝŶŐs 951,486,936 577,506,504 952,900,516 571,832,756 LKR LKR LKR LKR ĂŶŬKǀĞƌĚƌĂŌƐ 90,146,233 90,277,36 3 90,146,233 90,277,363 1,042,573,549 669,941,40 0 1,043,994,980 664,182,617 &ŝŶĂŶĐŝĂů>ŝĂďŝůŝƟĞƐ - - Odel Properties (Pvt) Ltd 6 6,762,114 66,767,018 - - 23.2 Fair value hierarchy KĚĞů/ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐǇ^ĞƌǀŝĐĞƐ;WǀƚͿ>ƚĚ ϳ͕ϬϱϮ͕ϬϴϮ 132,028,131 - - Odel Apparels (Pvt) Ltd 3,785,883 7,547,250 - - dŚĞ'ƌŽƵƉƵƐĞƐƚŚĞĨŽůůŽǁŝŶŐŚŝĞƌĂƌĐŚǇĨŽƌĚĞƚĞƌŵŝŶŝŶŐĂŶĚĚŝƐĐůŽƐŝŶŐƚŚĞĨĂŝƌǀĂůƵĞŽĨĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐďǇǀĂůƵĂƟŽŶƚĞĐŚŶŝƋƵĞ 77,600,079 206,342,399 - - >ĞǀĞůϭ͗ƋƵŽƚĞĚ;ƵŶĂĚũƵƐƚĞĚͿƉƌŝĐĞƐŝŶĂĐƟǀĞŵĂƌŬĞƚƐĨŽƌŝĚĞŶƟĐĂůĂƐƐĞƚƐŽƌůŝĂďŝůŝƟĞ s >ĞǀĞůϮ͗ŽƚŚĞƌƚĞĐŚŶŝƋƵĞƐĨŽƌǁŚŝĐŚĂůůŝŶƉƵƚƐƚŚĂƚŚĂǀĞĂƐŝŐŶŝĮĐĂŶƚĞīĞĐƚŽŶƚŚĞƌĞĐŽƌĚĞĚĨĂŝƌǀĂůƵĞĂƌĞŽďƐĞƌǀĂďůĞ͕ĞŝƚŚĞƌ ĚŝƌĞĐƚůǇŽƌŝŶĚŝƌĞĐƚůǇ >ĞǀĞůϯ͗ƚĞĐŚŶŝƋƵĞƐƚŚĂƚƵƐĞŝŶƉƵƚƐƚŚĂƚŚĂǀĞĂƐŝŐŶŝĮĐĂŶƚĞīĞĐƚŽŶƚŚĞƌĞĐŽƌĚĞĚĨĂŝƌǀĂůƵĞƚŚĂƚĂƌĞŶŽƚďĂƐĞĚŽŶŽďƐĞƌǀĂďůĞ ŵĂƌŬĞƚĚĂƚĂ

21. CASH AND CASH EQUIVALENTS Company 'ƌŽƵƉ ƐĂƚϯϭDĂƌĐŚϮϬϭϰ͕ƚŚĞ'ƌŽƵƉŚĞůĚƚŚĞĨŽůůŽǁŝŶŐĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĐĂƌƌŝĞĚĂƚĨĂŝƌǀĂůƵĞŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶ ŽŵƉŽŶĞŶƚƐŽĨĂƐŚĂŶĚĂƐŚƋƵŝǀĂůĞŶƚƐ 2014 2013 2014 2013 LKR LKR LKR LKR Assets measured at fair value Level 1 Level 2 Level 3 21.1 &ĂǀŽƵƌĂďůĞĂƐŚΘĂƐŚƋƵŝǀĂůĞŶƚƐĂůĂŶĐĞ LKR LKR LKR LKR CasŚ & ank alances 3 8,122,571 108,188,942 40,667,43 3 109,418,232 &ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĮƚĂŶĚůŽƐƐ

38,122,571 108,188,942 40,667,43 3 109,418,232 - - /ŶǀĞƐƚŵĞŶƚŝŶƐŚŽƌƚƚĞƌŵŝŶƐƚƌƵŵĞŶƚƐ 2014 2,072,417,726 2,072,417,726 21.2 hŶĨĂǀŽƵƌĂďůĞĂƐŚΘĂƐŚƋƵŝǀĂůĞŶƚƐĂůĂŶĐĞ 2013 2,006,700,000 2,006,700,000 - - ank Overdraft (90,146,233) (90,277,363) (90,146,233) (90,277,363) 24. EARNINGS PER SHARE (52,023,662) 17,911,57 9 (49,478,800) 19,140,86 9 ĂƐŝĐĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞŝƐĐĂůĐƵůĂƚĞĚďǇĚŝǀŝĚŝŶŐƚŚĞŶĞƚƉƌŽĮƚͬ;ůŽƐƐͿĨŽƌƚŚĞǇĞĂƌĂƩƌŝďƵƚĂďůĞƚŽĞƋƵŝƚǇŚŽůĚĞƌƐŽĨƉĂƌĞŶƚďǇ ƚŚĞǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞŶƵŵďĞƌŽĨŽƌĚŝŶĂƌǇƐŚĂƌĞƐŽƵƐƚĂŶĚŝŶŐĚƵƌŝŶŐƚŚĞǇĞĂƌ͘dŚĞǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞŶƵŵďĞƌŽĨŽƌĚŝŶĂƌǇƐŚĂƌĞƐ ŽƵƚƐƚĂŶĚŝŶŐĚƵƌŝŶŐƚŚĞǇĞĂƌĂŶĚƚŚĞƉƌĞǀŝŽƵƐǇĞĂƌĂƌĞĂĚũƵƐƚĞĚĨŽƌĞǀĞŶƚƐ͕ƚŚĂƚŚĂǀĞĐŚĂŶŐĞĚƚŚĞŶƵŵďĞƌŽĨŽƌĚŝŶĂƌǇƐŚĂƌĞƐ ŽƵƚƐƚĂŶĚŝŶŐ͕ǁŝƚŚŽƵƚĂĐŽƌƌĞƐƉŽŶĚŝŶŐĐŚĂŶŐĞŝŶƚŚĞƌĞƐŽƵƌĐĞƐ͘ 2014 2013 22.STATED CAPITAL

EƵŵďĞƌ LKR EƵŵďĞƌ LKR dŚĞĨŽůůŽǁŝŶŐƌĞŇĞĐƚƐƚŚĞŝŶĐŽŵĞĂŶĚƐŚĂƌĞĚĂƚĂƵƐĞĚŝŶƚŚĞĂƐŝĐƉĞƌ^ŚĂƌĞĐŽŵƉƵƚĂƟŽŶƐ

Amounts used as the numerators: 2014 2013 Fully Paid Ordinary SŚares 2 72,129,431 2,795,513,620 272,129,43 1 2,795,513,620 272,129,431 2,795,513,620 272,129,43 1 2,795,513,620 EĞƚƉƌŽĮƚ 192,553,361 157,322,213 EĞƚƉƌŽĮƚĂƩƌŝďƵƚĂďůĞƚŽŽƌĚŝŶĂƌǇƐŚĂƌĞŚŽůĚĞƌƐĨŽƌďĂƐŝĐĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ 192,553,361 157,322,213

Number of ordinary shares used as denominators:

WeiŐhƚeĚ aǀeƌaŐe nƵŵďeƌ oĨ oƌĚinaƌǇ shaƌes in issƵe aƉƉlicaďle ƚo ďasic eaƌninŐs Ɖeƌ shaƌe 272,129,431 178,051,496 272,129,431 178,051,496

84 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 85 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

25. ASSETS PLEDGED 27.1 Transaction with the parent and related entities Fellow Subsidiaries 2014 2013 dŚĞĨŽůůŽǁŝŶŐĂƐƐĞƚƐŚĂǀĞďĞĞŶƉůĞĚŐĞĚĂƐƐĞĐƵƌŝƚǇĨŽƌůŝĂďŝůŝƟĞƐ͘ LKR LKR

a) Nature of Transaction >ĞŶĚŝŶŐ/ŶƐƟƚƵƟŽŶzĞĂƌ >ŽĂŶ EĂƚƵƌĞŽĨĨĂĐŝůŝƚǇ ^ĞĐƵƌŝƚǇ Balance as at 1 April (95,971,859) (53,283,988) Bank of Ceylon 2012 / 2013/2014 ϮϳϱDŶDĞĚŝƵŵƚĞƌŵůŽĂŶWƌŽƉĞƌƚǇĂƚϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝǇĂ KǁŶĞĚďǇKĚĞůWƌŽƉƌƟĞƐ;WǀƚͿ>ƚĚ͘ Purchase of Goods/Services (231,578,708) (266,520,714) ,ĂƩŽŶEĂƟŽŶĂůĂŶŬϮϬϭϭͬϮϬϭϮͬϮϬϭϯͬϮϬϭ4 200Mn Medium term loan WƌŽƉĞƌƚǇĂƚϮϳϭͲϮϳϭ&͕<ĂĚƵǁĂůĂZŽĂĚ͕dŚĂůĂŶŐĂŵĂ͕ 399,955,386 223,832,843 ĂƩĂƌĂŵƵůůĂŽǁŶĞĚďǇKĚĞů>ĂŶŬĂ;WǀƚͿ>ƚĚ ^ĞƩůĞŵĞŶƚŽĨ>ŝĂďŝůŝƟĞƐŽŶďĞŚĂůĨŽĨƚŚĞŽŵƉĂŶǇ Balance as at 31 March 72,404,819 (95,971,859) DFCC Bank 2011 / 2012 / 2013 /2014 ϮϬϬDŶDĞĚŝƵŵƚĞƌŵůŽĂŶWƌŽƉĞƌƚǇĂƚϭϱ͕͘t͘t<ĂŶŶĂŶŐĂƌĂDǁ͘ŽůŽŵďŽϬϳ͘ DFCC Bank 2012 / 2013 /2014 96Mn Medium term loan WƌŽƉĞƌƚǇĂƚϭϱ͕͘t͘t<ĂŶŶĂŶŐĂƌĂDǁ͘ŽůŽŵďŽϬϳ and 29 A,Jayathilaka Mawatha Panadura b) Amounts outstanding as receivable or payable as at year end

Union Bank 2013 / 2014 ϭϮϱDŶ^ŚŽƌƚƚĞƌŵ>ŽĂŶWƌŽƉĞƌƚǇĂƚEŽ͘ϭϬ͕tĂƌĚWůĂĐĞ͕ŽůŽŵďŽϬϳ͘ DFCC Bank 2013 / 2014 ϭϬϬDŶ^ŚŽƌƚƚĞƌŵ>ŽĂŶWƌŽƉĞƌƚǇĂƚEŽ͘ϭϬ͕tĂƌĚWůĂĐĞ͕ŽůŽŵďŽϬϳ͘ Amounts Due from Amounts Due to

2014 2013 2014 2013 26. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES LKR LKR LKR LKR dŚĞƌĞǁĞƌĞŶŽƐŝŐŶŝĮĐĂŶƚĐĂƉŝƚĂůĐŽŵŵŝƚŵĞŶƚƐĂŶĚĐŽŶƟŶŐĞŶƚůŝĂďŝůŝƟĞƐĂƐŽĨƚŚĞĂůĂŶĐĞƐŚĞĞƚĚĂƚĞĞǆĐĞƉƚĨŽƌƚŚĞ>ĞƩĞƌŽĨ 66,762,114 6 6,767,01 8 ĐƌĞĚŝƚƐĞǆĞĐƵƚĞĚĨŽƌ>dWZdz/^>K^hZ^ Odel IT Services (Pvt) Ltd - - 7,052,082 1 32,028,13 1 dŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŝŶĐůƵĚĞƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ'ƌŽƵƉĂŶĚƚŚĞƐƵďƐŝĚŝĂƌŝĞƐůŝƐƚĞĚŝŶƚŚĞĨŽůůŽǁŝŶŐƚĂďůĞ͗ Greenfield Trading (Pvt) Ltd 136,587 8 1,649 - - йŽĨĞƋƵŝƚǇŝŶƚĞƌĞƐƚ BSL International (Pvt) Ltd 4,209,748 2 ,937,444 - - EĂŵĞ ZĞůĂƟŽŶƐŚŝƉϮϬϭϰϮϬϭϯ

Odel Apparels ;PvtͿ >td Subsidiary 100% 100%

Odel Information Technology Services ; PvtͿ >td Subsidiary 100% 100% 27.2 Odel PLC entered into a Licensing agreement with Studiotara (Pvt) Ltd,which owns "Embark" trade mark and Otara Del Odel Properties ; PvtͿ >td Subsidiary 100% 100% Gunewardene,who is the sole shareholder of Studiotara (Pvt) Ltd, on 31 January 2013, whereby Odel PLC is Granted Exclusive rights to use "Embark" trade mark in its products for a nominal sum of Rs.5,000 Odel >anka ; PvtͿ >td Subsidiary 100% 100% BS> International ;PvtͿ >td Subsidiary 100% 100% Parkson Zetail Asia >imited Malaysia Significant Investor ƵƌŝŶŐƚŚĞƚĞŶƵƌĞŽĨƚŚĞĂŐƌĞĞŵĞŶƚKĚĞůW>ǁŝůůŝŶǀĞƐƚĂƉĞƌĐĞŶƚĂŐĞŽĨƉƌŽĮƚĂƐŵĂǇďĞĚĞĐŝĚĞĚŽŶďǇƚŚĞďŽĂƌĚŽĨĚŝƌĞĐƚŽƌƐ ŽĨƚŚĞĐŽŵƉĂŶǇĨƌŽŵƟŵĞƚŽƟŵĞŝŶĐŽŶĐƵƌƌĞŶĐĞǁŝƚŚ^ƚƵĚŝŽƚĂƌĂĚĞƌŝǀĞĚĨƌŽŵƚŚĞƐĂůĞŽĨΗŵďĂƌŬΗŵĞƌĐŚĂŶĚŝƐĞŝŶ^Z dŚĞĨŽůůŽǁŝŶŐƚĂďůĞƉƌŽǀŝĚĞƐƚŚĞƚŽƚĂůĂŵŽƵŶƚŽĨƚƌĂŶƐĂĐƟŽŶƐƚŚĂƚŚĂǀĞďĞĞŶĞŶƚĞƌĞĚŝŶƚŽǁŝƚŚƚŚĞĂďŽǀĞƌĞůĂƚĞĚƉĂƌƟĞƐĨŽƌ ĐĂŵƉĂŝŐŶƐ͕ƉƌŽŵŽƟŽŶƐΘƌĞůĂƚĞĚĂĐƟǀŝƟĞƐĞƚĐ͘ ƚŚĞƌĞůĞǀĂŶƚĮŶĂŶĐŝĂůǇĞĂƌĂŶĚƚŚĞŝŶĨŽƌŵĂƟŽŶƌĞŐĂƌĚŝŶŐŽƵƚƐƚĂŶĚŝŶŐďĂůĂŶĐĞƐĂƚϯϭDĂƌĐŚϮϬϭϰĂŶĚϮϬϭϯ͘ 27.3 Transactions with Key Management Personnel of the Company or its parent

The key management personnel of the Company are the members of its Board of Directors and that of its parent.

a) Key Management Personnel Compensation 2014 2013 LKR LKR

^ŚŽƌƚͲƚĞƌŵĞŵƉůŽǇŵĞŶƚďĞŶĞĮƚƐ 35,190,000 32,425,000 35,190,000 32,425,000

b) Other Transactions 2014 2013 LKR LKR

Amounts outstanding in respect of Key Management Personnel - -

86 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 87 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2014 Year ended 31 March 2014

28. OPERATING LEASE COMMITMENTS — Group as Lessee 30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd…) dŚĞ'ƌŽƵƉŚĂƐĞŶƚĞƌĞĚŝŶƚŽĐŽŵŵĞƌĐŝĂůůĞĂƐĞƐĨŽƌƉƌŽƉĞƌƟĞƐƚŽŽƉĞƌĂƚĞŝƚƐŽƵƚůĞƚŶĞƚǁŽƌŬ͘dŚĞƐĞůĞĂƐĞƐŚĂǀĞĂŶĂǀĞƌĂŐĞůŝĨĞŽĨ Credit risk ďĞƚǁĞĞŶϰĂŶĚϴǇĞĂƌƐ͘dŚĞƌĞĂƌĞŶŽƌĞƐƚƌŝĐƟŽŶƐƉůĂĐĞĚƵƉŽŶƚŚĞ'ƌŽƵƉďǇĞŶƚĞƌŝŶŐŝŶƚŽƚŚĞƐĞůĞĂƐĞƐ͘ ƌĞĚŝƚƌŝƐŬŝƐƚŚĞƌŝƐŬƚŚĂƚĂĐŽƵŶƚĞƌƉĂƌƚǇǁŝůůŶŽƚŵĞĞƚŝƚƐŽďůŝŐĂƟŽŶƐƵŶĚĞƌĂĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚŽƌĐƵƐƚŽŵĞƌĐŽŶƚƌĂĐƚ͕ ůĞĂĚŝŶŐƚŽĂĮŶĂŶĐŝĂůůŽƐƐ͘dŚĞ'ƌŽƵƉŚĂƐŵŝŶŝŵĂůĞǆƉŽƐƵƌĞƚŽĐƌĞĚŝƚƌŝƐŬĨƌŽŵŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐĚƵĞƚŽŶĂƚƵƌĞŽĨďƵƐŝŶĞƐƐ͘ &ƵƚƵƌĞŵŝŶŝŵƵŵƌĞŶƚĂůƐƉĂǇĂďůĞƵŶĚĞƌŶŽŶͲĐĂŶĐĞůůĂďůĞŽƉĞƌĂƟŶŐůĞĂƐĞƐĂƌĞĂƐĨŽůůŽǁƐ͗ 2014 2013 dŚĞƌŝƐŬĨƌŽŵŝƚƐĮŶĂŶĐŝŶŐĂĐƟǀŝƟĞƐ͕ŝŶĐůƵĚŝŶŐĚĞƉŽƐŝƚƐǁŝƚŚďĂŶŬƐĂŶĚĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶƐŝƐŵĂŶĂŐĞĚďǇĚĞĂůŝŶŐǁŝƚŚ LKR LKR ŝŶƐƟƚƵƟŽŶƐĐĂƌƌǇŝŶŐŚŝŐŚĐƌĞĚŝƚƌĂƟŶŐ͘

Within one year 164,455,976 150,580,38 3 Liquidity Risk ŌĞƌŽŶĞǇĞĂƌďƵƚŶŽƚŵŽƌĞƚŚĂŶĮǀĞǇĞĂƌs 519,244,494 342,454,95 0 dŚĞ'ƌŽƵƉΖƐŽďũĞĐƟǀĞŝƐƚŽŵĂŝŶƚĂŝŶĂďĂůĂŶĐĞďĞƚǁĞĞŶĐŽŶƟŶƵŝƚǇŽĨĨƵŶĚŝŶŐĂŶĚŇĞǆŝďŝůŝƚǇƚŚƌŽƵŐŚƚŚĞƵƐĞŽĨďĂŶŬŽǀĞƌĚƌĂŌƐ͕ DŽƌĞƚŚĂŶĮǀĞǇĞĂƌs 102,780,829 6 1 , 5 5 0 , 8 4 5 ďĂŶŬůŽĂŶƐĂŶĚĮŶĂŶĐĞůĞĂƐĞƐ͘ĐĐĞƐƐƚŽƐŽƵƌĐĞƐŽĨĨƵŶĚŝŶŐŝƐƐƵĸĐŝĞŶƚůǇĂǀĂŝůĂďůĞĂŶĚĚĞďƚŵĂƚƵƌŝŶŐǁŝƚŚŝŶϭϮŵŽŶƚŚƐĐĂŶďĞ 786,481,299 5 5 4 , 5 8 6 , 1 7 8 ƌĞĮŶĂŶĐĞĚǁŝƚŚĞǆŝƐƟŶŐůĞŶĚĞƌƐ͘

dŚĞƚĂďůĞďĞůŽǁƐƵŵŵĂƌŝƐĞƐƚŚĞŵĂƚƵƌŝƚǇƉƌŽĮůĞŽĨƚŚĞ'ƌŽƵƉ͛ƐĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐďĂƐĞĚŽŶĐŽŶƚƌĂĐƚƵĂůƵŶĚŝƐĐŽƵŶƚĞĚ payments 29. DIVIDENDS PAID AND PROPOSED 2014 2013 LKR LKR ĞĐůĂƌĞĚĂŶĚƉĂŝĚĚƵƌŝŶŐƚŚĞǇĞĂƌ: Company . ŝǀŝĚĞŶĚƐŽŶŽƌĚŝŶĂƌǇƐŚĂƌĞƐ: Less than 3 to 12 1 to 5 &ŝŶĂůĚŝǀŝĚĞŶĚĨŽƌϮϬϭϯ͗ϭϬĐĞŶƚƐƉĞƌƐŚĂƌĞ;ϮϬϭϮ͗ϮϱĐĞŶƚƐƉĞƌƐŚĂƌĞ) 27,212,943 36,237,500 Year ended 31 March 2014 On demand 3 months months years > 5 years Total /ŶƚĞƌŝŵĚŝǀŝĚĞŶĚĨŽƌϮϬϭϰ͗ϭϮĐĞŶƚƐƉĞƌƐŚĂƌĞ;ϮϬϭϯ͗ϮϱĐĞŶƚƐƉĞƌƐŚĂƌĞ) 32,655,532 36,237,500 59,868,475 72,475,000 Interest-bearing loans and borrowings 563 , 0 5 7 , 3 6 4 110,394,093 278,975,859 952,427,31 6

&ŝŶĂůĚŝǀŝĚĞŶĚŽĨϭϮĐĞŶƚƐƉĞƌƐŚĂƌĞĨŽƌϮϬϭϰ;ŶŽƚƌĞĐŽŐŶŝƐĞĚĂƐĂůŝĂďŝůŝƚǇĂƐĂƚϯϭDĂƌĐŚͿŚĂƐďĞĞŶĚĞĐůĂƌĞĚŽŶϮϵƚŚDĂǇϮϬϭϰ͘ Bank Overdrafts 90,146,233 90,146,233 Final dividend for 2013: XXXXX cents per share (2012: XXXX cents per share) Trade and other payables 389,946,080 389,946,080 30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 90,146,233 953,003,444 110,394,093 278,975,859 - 1,432,519,630 dŚĞ'ƌŽƵƉ͛ƐƉƌŝŶĐŝƉĂůĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐĐŽŵƉƌŝƐĞůŽĂŶƐĂŶĚďŽƌƌŽǁŝŶŐƐĂŶĚƚƌĂĚĞĂŶĚŽƚŚĞƌƉĂǇĂďůĞƐ͘dŚĞŵĂŝŶƉƵƌƉŽƐĞŽĨ ƚŚĞƐĞĮŶĂŶĐŝĂůůŝĂďŝůŝƟĞƐŝƐƚŽĮŶĂŶĐĞƚŚĞ'ƌŽƵƉ͛ƐŽƉĞƌĂƟŽŶƐ͘ . Less than 3 to 12 1 to 5

On demand 3 months months years > 5 years Total dŚĞ'ƌŽƵƉŚĂƐůŽĂŶΘƌĞĐĞŝǀĂďůĞƐ͕ƚƌĂĚĞĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ͕ĂŶĚĐĂƐŚĂŶĚƐŚŽƌƚͲƚĞƌŵĚĞƉŽƐŝƚƐƚŚĂƚĂƌĞĚĞƌŝǀĞĚĚŝƌĞĐƚůǇĨƌŽŵ Year ended 31 March 2013 ŝƚƐŽƉĞƌĂƟŽŶƐ͘ Interest-bearing loans and b o r r o w i n g s - 38,127,750 114,109,549 425,144,133 2,282,629 579,664,062 dŚĞ'ƌŽƵƉ͛ƐƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚŽǀĞƌƐĞĞƐƚŚĞŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞĮŶĂŶĐŝĂůƌŝƐŬƐ͘dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐƌĞǀŝĞǁƐĂŶĚĂŐƌĞĞƐ ƉŽůŝĐŝĞƐĨŽƌŵĂŶĂŐŝŶŐĞĂĐŚŽĨƚŚĞƐĞƌŝƐŬƐǁŚŝĐŚĂƌĞƐƵŵŵĂƌŝǌĞĚďĞůŽǁ͘ B-ank Overdrafts 9 0 , 2 7 7 , 3 6 3 - - - 90,277,363 Trade and other payables - 381,396,152 13,329,359 4,105,186 - 398,830,696 Interest rate risk 90,277,363 419,523,902 127,438,908 429,249,319 2,282,629 1,068,772,121 /ŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬŝƐƚŚĞƌŝƐŬƚŚĂƚƚŚĞĨĂŝƌǀĂůƵĞŽƌĨƵƚƵƌĞĐĂƐŚŇŽǁƐŽĨĂĮŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚǁŝůůŇƵĐƚƵĂƚĞďĞĐĂƵƐĞŽĨĐŚĂŶŐĞƐŝŶ ŵĂƌŬĞƚŝŶƚĞƌĞƐƚƌĂƚĞƐ͘dŚĞ'ƌŽƵƉ͛ƐĞǆƉŽƐƵƌĞƚŽƚŚĞƌŝƐŬŽĨĐŚĂŶŐĞƐŝŶŵĂƌŬĞƚŝŶƚĞƌĞƐƚƌĂƚĞƐĂƌŝƐĞĚƵĞƚŽƚŚĞďŽƌƌŽǁŝŶŐƐǁŝƚŚ ŇŽĂƟŶŐŝŶƚĞƌĞƐƚƌĂƚĞƐ͘dŚĞŵŽǀĞŵĞŶƚŽĨƌĂƚĞƐĂƌĞĐůŽƐĞůǇŵŽŶŝƚŽƌĞĚĂŶĚƌĞĮŶĂŶĐŝŶŐŽƉƟŽŶƐĂƌĞĂǀĂŝůĂďůĞƚŽŵĂŶĂŐĞƚŚŝƐƌŝƐŬ͘ Group . Less than 3 to 12 1 to 5 INTEREST RATE SENSITIVITY Year ended 31 March 2014 On demand 3 months months years > 5 years Total dŚĞĨŽůůŽǁŝŶŐƚĂďůĞĚĞŵŽŶƐƚƌĂƚĞƐƚŚĞƐĞŶƐŝƟǀŝƚǇƚŽĂƌĞĂƐŽŶĂďůǇƉŽƐƐŝďůĞĐŚĂŶŐĞŝŶŝŶƚĞƌĞƐƚƌĂƚĞƐŽŶƚŚĂƚƉŽƌƟŽŶŽĨůŽĂŶƐĂŶĚ ďŽƌƌŽǁŝŶŐƐ͘tŝƚŚĂůůŽƚŚĞƌǀĂƌŝĂďůĞƐŚĞůĚĐŽŶƐƚĂŶƚ͕ƚŚĞ'ƌŽƵƉ͛ƐƉƌŽĮƚďĞĨŽƌĞƚĂǆŝƐĂīĞĐƚĞĚƚŚƌŽƵŐŚƚŚĞŝŵƉĂĐƚŽŶŇŽĂƟŶŐƌĂƚĞ ďŽƌƌŽǁŝŶŐƐ͕ĂƐĨŽůůŽǁƐ͗ Interest-bearing loans and borrowings 563 , 0 5 7 , 3 6 4 110,394,093 278,975,859 952,427,31 6 Bank Overdrafts 90,146,233 90,146,233 Increase/ decrease in Effect on profit Trade and other payables 425,044,288 425,044,288 basis points before tax 90,146,233 988,101,652 110,394,093 278,975,859 - 1,467,617,837 2014 . Loan Interest +100 ;5,647,546) Less than 3 to 12 1 to 5 Loan Interest -100 5,647,546 Year ended 31 March 2013 On demand 3 months months years > 5 years Total

2013 Interest-bearing loans and b o r r o w i n g s - 38,127,750 114,109,549 425,144,133 2,282,629 579,664,062 Loan Interest +100 ;6,683,756) B-ank Overdrafts 9 0,277,363 - - - 90,277,363 Loan Interest -100 6,683,756 Trade and other payables - 381,120,407 13,329,359 4,105,186 - 398,554,951 90,277,363 419,248,157 127,438,908 429,249,319 2,282,629 1,068,496,376 dŚĞĂƐƐƵŵĞĚŵŽǀĞŵĞŶƚŝŶďĂƐŝƐƉŽŝŶƚƐĨŽƌŝŶƚĞƌĞƐƚƌĂƚĞƐĞŶƐŝƟǀŝƚǇĂŶĂůǇƐŝƐŝƐďĂƐĞĚŽŶƚŚĞĐƵƌƌĞŶƚůǇŽďƐĞƌǀĂďůĞŵĂƌŬĞƚ ĞŶǀŝƌŽŶŵĞŶƚ͕ƐŚŽǁŝŶŐĂƐŝŐŶŝĮĐĂŶƚůǇŚŝŐŚĞƌǀŽůĂƟůŝƚǇƚŚĂŶŝŶƉƌŝŽƌǇĞĂƌƐ͘

88 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 89 NOTES TO THE FINANCIAL STATEMENTS SHAREHOLDER & INVESTOR INFORMATION Year ended 31 March 2014 Year ended 31 March 2014

Capital management 1. SHAREHOLDERS dŚĞ'ƌŽƵƉΖƐKďũĞĐƟǀĞƐǁŚĞŶŵĂŶĂŐŝŶŐĐĂƉŝƚĂůĂƌĞƚŽƐĂĨĞŐƵĂƌĚƚŚĞĞŶƟƚǇΖƐĂďŝůŝƚǇƚŽĐŽŶƟŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͕ƐŽƚŚĂƚŝƚĐĂŶ ĐŽŶƟŶƵĞƚŽƉƌŽǀŝĚĞƌĞƚƵƌŶĨŽƌƐŚĂƌĞŚŽůĚĞƌƐĂŶĚďĞŶĞĮƚĨŽƌŽƚŚĞƌƐƚĂŬĞŚŽůĚĞƌƐĂŶĚƚŽƉƌŽǀŝĚĞĂŶĂĚĞƋƵĂƚĞƌĞƚƵƌŶƚŽƐŚĂƌĞŚŽůĚ- There were 6,483 (2013 – 6,981) Ordinary shareholders as at 31st March 2014, distributed into different categories as follows: ĞƌƐďǇƉƌŝĐŝŶŐƉƌŽĚƵĐƚƐĂŶĚƐĞƌǀŝĐĞƐĐŽŵŵĞŶƐƵƌĂƚĞůǇǁŝƚŚƚŚĞůĞǀĞůŽĨƌŝƐŬ Share Analysis at 31st March 2014 dŚĞ'ƌŽƵƉƐĞƚƐƚŚĞĂŵŽƵŶƚŽĨĐĂƉŝƚĂůŝŶƉƌŽƉŽƌƟŽŶƚŽƌŝƐŬ͘dŚĞ'ƌŽƵƉŵĂŶĂŐĞƐƚŚĞĐĂƉŝƚĂůƐƚƌƵĐƚƵƌĞĂŶĚŵĂŬĞƐĂĚũƵƐƚŵĞŶƚƐƚŽ ŝƚŝŶƚŚĞůŝŐŚƚŽĨĐŚĂŶŐĞƐŝŶĞĐŽŶŽŵŝĐĐŽŶĚŝƟŽŶƐĂŶĚƌŝƐŬĐŚĂƌĂĐƚĞƌŝƐƟĐƐŽĨƚŚĞƵŶĚĞƌůǇŝŶŐĂƐƐĞƚƐ͘/ŶŽƌĚĞƌƚŽŵĂŝŶƚĂŝŶŽƌĂĚũƵƐƚ No. of shares No. of Holders No. of shares Holdings % ƚŚĞĐĂƉŝƚĂůƐƚƌƵĐƚƵƌĞ͕ƚŚĞ'ƌŽƵƉŵĂǇĂĚũƵƐƚƚŚĞĂŵŽƵŶƚŽĨĚŝǀŝĚĞŶĚƐƉĂŝĚƚŽƐŚĂƌĞŚŽůĚĞƌƐ͕ƌĞƚƵƌŶĐĂƉŝƚĂůƚŽƐŚĂƌĞŚŽůĚĞƌƐ͕ŝƐƐƵĞ ŶĞǁƐŚĂƌĞƐŽƌƐĞůůĂƐƐĞƚƐƚŽƌĞĚƵĐĞĚĞďƚ͘ 1 - 1,000 5,590 1,594,418 0.58 1,001 - 10,000 774 2,475,720 0.91 31. EVENTS OCCURRING AFTER THE REPORTING DATE 10,001 - 100,000 96 2,565,962 0.95 dŚĞƌĞŚĂǀĞďĞĞŶŶŽŵĂƚĞƌŝĂůĞǀĞŶƚƐŽĐĐƵƌƌŝŶŐĂŌĞƌƚŚĞƌĞƉŽƌƟŶŐĚĂƚĞƚŚĂƚƌĞƋƵŝƌĞĂĚũƵƐƚŵĞŶƚƐƚŽŽƌĚŝƐĐůŽƐƵƌĞŝŶƚŚĞĮŶĂŶĐŝĂů 100,001 - 1,000,000 17 4,920,134 1.81 ƐƚĂƚĞŵĞŶƚƐŽƚŚĞƌƚŚĂŶĨŽƌƚŚĞŝŶĨŽƌŵĂƟŽŶĚŝƐĐůŽƐĞĚŝŶEŽƚĞϮϵŽĨdŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͘ Over 1,000,000 6 260,573,197 95.75 Total 6,483 272,129,431 100

Category No. of Holders No. of shares Holdings %

Individuals 6,320 133,988,452 49.81 /ŶƐƟƚƵƟŽŶƐ 163 138,140,979 50.19

Total 6,483 272,129,431 100 Residents 6,445 135,556,726 49.81 Non-residents 38 136,572,705 50.19 Total 6,483 272,129,431 100

Percentage of shares held by public – 7.98%.

Percentage of shares held by the Directors together with the members of their families – 30%

90 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 91 SHAREHOLDER & INVESTOR INFORMATION Year ended 31 March 2014

2. TWENTY LARGEST SHAREHOLDERS - ORDINARY SHARES AT 31ST MARCH 2014 FORM OF PROXY

I/We*...... ……...... ………...……...... ………(please indicate full name) bearing NIC No. ……….…………... No. Name No. of Shares Percentage % of ...... ……………...... ………………. being a member/*members of Odel PLC hereby appoint Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞ ŽĨŽůŽŵďŽŽƌĨĂŝůŝŶŐŚŝŵ 1 Parkson Retail Asia Limited 129,150,864 47.46 Ms. Otara Del Gunewardene of Colombo or failing her 2 Ms. O.D, Gunewardene 80,833,100 29.70 Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ ŽĨŽůŽŵďŽŽƌĨĂŝůŝŶŐŚŝŵ Mr. Paul Topping of Colombo or failing him 3 Mr. A.D. Gunewardene 39,416,900 14.48 Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞǇ/ŐŶĂƟƵƐWĞƌĞƌĂ ŽĨŽůŽŵďŽŽƌĨĂŝůŝŶŐŚŝŵ 4 Dr. T. Senthilverl 5,097,956 1.87 Dƌ͘zŚŐĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐ ŽĨDĂůĂǇƐŝĂŽƌĨĂŝůŝŶŐŚŝŵ ϱ EŽƌƚŚĞƌŶdƌƵƐƚŽŵƉĂŶǇ^ͬ,EKƉƉŽƌƚƵŶŝƟĞƐDĂƐƚĞƌ&ƵŶĚ͕^W ϰ͕ϲϬϲ͕ϵϲϳ ϭ͘ϲϵ Mr. Tiang Chee Sung of Malaysia or failing him Ms. Wong Siew Chuan of Malaysia or failing her ϲ WĞƌƐŚŝŶŐ>>^ͬŚĂŵďĞƌƐ^ƚƌĞĞƚ'ůŽďĂů&ƵŶĚ͕>W ϭ͕ϰϲϳ͕ϰϭϬ Ϭ͘ϱϰ Dƌ͘,ĂŵŝĚ'ŚĂǌĂůŝ,ƵƐƐĂŝŶ ŽĨŽůŽŵďŽŽƌĨĂŝůŝŶŐŚŝŵ 7 Mr. R.H. Gunewardene 1,000,000 0.37 (Alternate to Director Mr. Paul Topping) ϴ ,^/Ed>EŽŵ>ƚĚͲ,ͲDĂƚŚĞǁƐŵĞƌŐŝŶŐƐŝĂ&ƵŶĚ ϲϬϱ͕ϴϲϳ Ϭ͘ϮϮ Mr/Ms ...... ……...... ………...... ……...... ………(please indicate full name) bearing NIC No. 9 Mrs. E.B.H.A. Perera / Mr D.C. De L ST. D Perera 527,000 0.19 ……….…………………... of……………...……………………………………… …………………………………………………..as my/*our Proxy to represent ŵĞͬΎƵƐĂŶĚƚŽǀŽƚĞĂƐŝŶĚŝĐĂƚĞĚďĞůŽǁŽŶŵǇͬΎŽƵƌďĞŚĂůĨĂƚƚŚĞŶŶƵĂů'ĞŶĞƌĂůDĞĞƟŶŐŽĨƚŚĞŽŵƉĂŶǇƚŽďĞŚĞůĚŽŶƚŚĞϵ 10 Mr.G.C.S.Ramanayake/Mrs.K.M.Ramanayake 521,368 0.19 ^ĞƉƚĞŵďĞƌϮϬϭϰĂŶĚĂƚĂŶǇĂĚũŽƵƌŶŵĞŶƚƚŚĞƌĞŽĨĂŶĚĂƚĞǀĞƌǇƉŽůůǁŚŝĐŚŵĂǇďĞƚĂŬĞŶŝŶĐŽŶƐĞƋƵĞŶĐĞŽĨƚŚĞĂĨŽƌĞƐĂŝĚDĞĞƟŶŐ͘ ϭϭ DĞƌĐĂŶƟůĞ/ŶǀĞƐƚŵĞŶƚĂŶĚ&ŝŶĂŶĐĞW> ϯϬϬ͕ϬϬϬ Ϭ͘ϭϭ 12 Tangerine Tours (Pvt) Limited 225,600 0.08 FOR AGAINST 1. To receive and consider the Annual Report of the Board ϭϯ &ŝƌƐƚĂƉŝƚĂůDĂƌŬĞƚƐ>ŝŵŝƚĞĚͬDƌ/͘W͘'ĂůŚĞŶĂŐĞ ϮϬϬ͕ϬϬϬ Ϭ͘Ϭϳ ŽĨŝƌĞĐƚŽƌƐŽŶƚŚĞ^ƚĂƚĞŽĨīĂŝƌƐŽĨƚŚĞŽŵƉĂŶǇĂŶĚ 14 Bank of Ceylon No.1 Account 197,400 0.07 the Audited Consolidated Financial Statements for the year ended 31stMarch 2014 with the Report of the Auditors thereon. 15 Dee Investments (Pvt) Ltd 190,400 0.07 16 Mr. M.M Salahudeen 180,000 0.07 Ϯ͘dŽƌĞͲĞůĞĐƚDƌ͘zŚŐ͕ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽ ƌƟĐůĞϮϯ;ϮͿŽĨƚŚĞƌƟĐůĞƐŽĨƐƐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶǇ͘ ϭϳ DƌƐ͘&͘^͘^ĂďƌǇ ϭϲϮ͕ϬϬϬ Ϭ͘Ϭϲ 18 Mr. Valabji 150,200 0.06 ϯ͘dŽƌĞͲĞůĞĐƚDƌ͘dŝĂŶŐŚĞĞ^ƵŶŐĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿ 19 Gold Investment Limited 150,200 0.06 ŽĨƚŚĞƌƟĐůĞƐŽĨƐƐĐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶǇ͘ 20 Mr. Dabah 150,200 0.06 ϰ͘dŽƌĞͲĞůĞĐƚDƐ͘tŽŶŐ^ŝĞǁŚƵĂŶĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿ ŽĨƚŚĞƌƟĐůĞƐŽĨƐƐĐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶǇ͘

5. To re-appoint M/s. Ernst & Young, Chartered Accountants 3. Dividends and Market Value 2014 2013 As Auditors to the Company and authorise the Directors to ĚĞƚĞƌŵŝŶĞƚŚĞŝƌƌĞŵƵŶĞƌĂƟŽŶ͘ Dividends per share 24 Cents 35 Cents ϲ͘dŽĂƵƚŚŽƌŝƐĞƚŚĞŝƌĞĐƚŽƌƐƚŽĚĞƚĞƌŵŝŶĞĐŽŶƚƌŝďƵƟŽŶƐƚŽĐŚĂƌŝƟĞƐ͘ Dividend pay out 34% 40% Net asset value per share Rs. 19.18 Rs. 18.72 As witness my/our hand/this …………………. day of ………….. Two Thousand and Fourteen. Share Price (Rs.) 31st March 2014 31st March 2013 As at the end of the year 19.30 21.00 Highest price traded 28.10 26.90 Signature ……….……...... ………… Lowest price traded 18.10 16.00

Note: /ŶƐƚƌƵĐƟŽŶƐĂƐƚŽĐŽŵƉůĞƟŽŶĂƉƉĞĂƌŽŶƚŚĞƌĞǀĞƌƐĞŚĞƌĞƚŽ͘WůĞĂƐĞĚĞůĞƚĞƚŚĞŝŶĂƉƉƌŽƉƌŝĂƚĞǁŽƌĚƐ͕ĂŶĚŵĂƌŬ͚y͛ŝŶƚŚĞ ĂƉƉƌŽƉƌŝĂƚĞĐĂŐĞƐƚŽŝŶĚŝĐĂƚĞǇŽƵƌŝŶƐƚƌƵĐƟŽŶƐĂƐƚŽǀŽƟŶŐ͘

A proxy need not be a member of the Company.

92 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 93 INSTRUCTIONS AS TO COMPLETION OF FORM OF PROXY NOTICE OF MEETING

ϭ͘<ŝŶĚůǇƉĞƌĨĞĐƚƚŚĞ&ŽƌŵŽĨWƌŽǆǇďǇĮůůŝŶŐŝŶůĞŐŝďůǇǇŽƵƌĨƵůůŶĂŵĞĂŶĚĂĚĚƌĞƐƐ͕ǇŽƵƌŝŶƐƚƌƵĐƟŽŶƐĂƐƚŽǀŽƟŶŐ͕ďǇƐŝŐŶŝŶŐŝŶ ƚŚĞƐƉĂĐĞƉƌŽǀŝĚĞĚĂŶĚĮůůŝŶŐŝŶƚŚĞĚĂƚĞŽĨƐŝŐŶĂƚƵƌĞ͘ EKd/ŝƐŚĞƌĞďǇŐŝǀĞŶƚŚĂƚƚŚĞŶŶƵĂů'ĞŶĞƌĂůDĞĞƟŶŐŽĨKĚĞůW>ǁŝůůďĞŚĞůĚĂƚdŚĞ/ŶƐƟƚƵƚĞŽĨŚĂƌƚĞƌĞĚĐĐŽƵŶƚĂŶƚƐŽĨ^ƌŝ Lanka 30A, Malalasekera Mawatha, Colombo 07 on Tuesday, 9th September 2014 at 11.00a.m. Ϯ͘WůĞĂƐĞŝŶĚŝĐĂƚĞǁŝƚŚĂ͚y͛ŝŶƚŚĞĐĂŐĞƐƉƌŽǀŝĚĞĚŚŽǁǇŽƵƌƉƌŽǆǇŝƐƚŽǀŽƚĞŽŶƚŚĞZĞƐŽůƵƟŽŶƐ͘/Ĩ ŶŽŝŶĚŝĐĂƟŽŶŝƐŐŝǀĞŶ ƚŚĞWƌŽǆǇŝŶŚŝƐͬŚĞƌĚŝƐĐƌĞƟŽŶŵĂǇǀŽƚĞĂƐŚĞͬƐŚĞƚŚŝŶŬƐĮƚ͘ AGENDA Ϯ͘dŚĞĐŽŵƉůĞƚĞĚ&ŽƌŵŽĨWƌŽǆǇƐŚŽƵůĚďĞĚĞƉŽƐŝƚĞĚĂƚƚŚĞZĞŐŝƐƚĞƌĞĚKĸĐĞŽĨƚŚĞŽŵƉĂŶǇ͕EŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ ZĂũĂŐŝƌŝǇĂŶŽƚůĞƐƐƚŚĂŶϰϴŚŽƵƌƐďĞĨŽƌĞƚŚĞƟŵĞĂƉƉŽŝŶƚĞĚĨŽƌŚŽůĚŝŶŐƚŚĞŵĞĞƟŶŐ͘ ϭ͘dŽƌĞĐĞŝǀĞĂŶĚĐŽŶƐŝĚĞƌƚŚĞŶŶƵĂůZĞƉŽƌƚŽĨƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŽŶƚŚĞ^ƚĂƚĞŽĨīĂŝƌƐŽĨƚŚĞŽŵƉĂŶǇĂŶĚƚŚĞƵĚŝƚĞĚ Consolidated Financial Statements for the year ended 31st March 2014 with the Report of the Auditors thereon. ϰ͘/ĨƚŚĞĨŽƌŵŽĨƉƌŽǆǇŝƐƐŝŐŶĞĚďǇĂŶĂƩŽƌŶĞǇ͕ƚŚĞƌĞůĂƟǀĞƉŽǁĞƌŽĨĂƩŽƌŶĞǇƐŚŽƵůĚĂĐĐŽŵƉĂŶǇƚŚĞĐŽŵƉůĞƚĞĚĨŽƌŵŽĨƉƌŽǆǇ ĨŽƌƌĞŐŝƐƚƌĂƟŽŶŝĨƐƵĐŚƉŽǁĞƌŽĨĂƩŽƌŶĞǇŚĂƐŶŽƚĂůƌĞĂĚǇďĞĞŶƌĞŐŝƐƚĞƌĞĚǁŝƚŚƚŚĞŽŵƉĂŶǇ͘ Ϯ͘dŽƌĞͲĞůĞĐƚDƌ͘zŚŐ͕ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿŽĨƚŚĞƌƟĐůĞƐŽĨƐƐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶǇ͘

ϯ͘dŽƌĞͲĞůĞĐƚDƌ͘dŝĂŶŐŚĞĞ^ƵŶŐĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿŽĨƚŚĞƌƟĐůĞƐŽĨƐƐĐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶǇ͘ Note: /ĨƚŚĞƐŚĂƌĞŚŽůĚĞƌŝƐĂŽŵƉĂŶǇŽƌďŽĚǇĐŽƌƉŽƌĂƚĞ͕^ĞĐƟŽŶϭϯϴŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚEŽ͘ϬϳŽĨϮϬϬϳĂƉƉůŝĞƐƚŽƐŚĂƌĞŚŽůĚĞƌƐ ϰ͘dŽƌĞͲĞůĞĐƚDƐ͘tŽŶŐ^ŝĞǁŚƵĂŶĂƐĂŝƌĞĐƚŽƌƉƵƌƐƵĂŶƚƚŽƌƟĐůĞϮϯ;ϮͿŽĨƚŚĞƌƟĐůĞƐŽĨƐƐĐŽĐŝĂƟŽŶŽĨƚŚĞŽŵƉĂŶǇ͘ ŽĨKĚĞůW>ĂŶĚ^ĞĐƟŽŶϭϯϴƉƌŽǀŝĚĞƐĨŽƌƌĞƉƌĞƐĞŶƚĂƟŽŶŽĨŽŵƉĂŶŝĞƐĂƚŵĞĞƟŶŐŽĨŽƚŚĞƌŽŵƉĂŶŝĞƐ͘ĐŽƌƉŽƌĂƟŽŶ͕ǁŚĞƚŚĞƌ ĂŽŵƉĂŶǇǁŝƚŚŝŶƚŚĞŵĞĂŶŝŶŐŽĨƚŚŝƐĐƚŽƌŶŽƚ͕ŵĂǇǁŚĞƌĞŝƚŝƐĂŵĞŵďĞƌŽĨĂŶŽƚŚĞƌĐŽƌƉŽƌĂƟŽŶ͕ďĞŝŶŐĂĐŽŵƉĂŶǇǁŝƚŚŝŶ 5. To re-appoint M/s. Ernst & Young, Chartered Accountants as Auditors to the Company and authorise the Directors to determine ƚŚĞŵĞĂŶŝŶŐŽĨƚŚŝƐĐƚďǇƌĞƐŽůƵƟŽŶŽĨŝƚƐŝƌĞĐƚŽƌƐŽƌŽƚŚĞƌŐŽǀĞƌŶŝŶŐďŽĚǇĂƵƚŚŽƌŝƐĞƐƵĐŚƉĞƌƐŽŶĂƐŝƚƚŚŝŶŬƐĮƚƚŽĂĐƚĂƐ ƚŚĞŝƌƌĞŵƵŶĞƌĂƟŽŶ͘ ŝƚƐƌĞƉƌĞƐĞŶƚĂƟǀĞĂƚĂŶǇŵĞĞƟŶŐŽĨƚŚĞŽŵƉĂŶǇ͘ƉĞƌƐŽŶĂƵƚŚŽƌŝƐĞĚĂƐĂĨŽƌĞƐĂŝĚƐŚĂůůďĞĞŶƟƚůĞĚƚŽĞǆĞƌĐŝƐĞƚŚĞƐĂŵĞ ƉŽǁĞƌŽŶďĞŚĂůĨŽĨƚŚĞŽƌƉŽƌĂƟŽŶǁŚŝĐŚŝƚƌĞƉƌĞƐĞŶƚƐĂƐƚŚĂƚŽƌƉŽƌĂƟŽŶĐŽƵůĚĞǆĞƌĐŝƐĞŝĨŝƚǁĞƌĞĂŶ/ŶĚŝǀŝĚƵĂůƐŚĂƌĞŚŽůĚĞƌ ϲ͘dŽĂƵƚŚŽƌŝƐĞƚŚĞŝƌĞĐƚŽƌƐƚŽĚĞƚĞƌŵŝŶĞĐŽŶƚƌŝďƵƟŽŶƐƚŽĐŚĂƌŝƟĞƐ͘ of that other Company.

By Order of the Board of Directors of Odel PLC S S P CORPORATE SERVICES (PRIVATE) LIMITED SECRETARIES

Colombo

Date : 14th July 2014

Notes :

ϭ͘ŵĞŵďĞƌĞŶƟƚůĞĚƚŽĂƩĞŶĚĂŶĚǀŽƚĞĂƚƚŚĞŵĞĞƟŶŐŝƐĞŶƟƚůĞĚƚŽĂƉƉŽŝŶƚĂWƌŽǆǇƚŽĂƩĞŶĚĂŶĚǀŽƚĞŝŶƐƚĞĂĚŽĨŚŝŵͬŚĞƌ͘^ƵĐŚ Proxy need not be a member of the Company.

Ϯ͘&ŽƌŵŽĨWƌŽǆǇĂĐĐŽŵƉĂŶŝĞƐƚŚŝƐŶŽƟĐĞ͘

ϯ͘dŚĞĐŽŵƉůĞƚĞĚ&ŽƌŵŽĨWƌŽǆǇƐŚŽƵůĚďĞĚĞƉŽƐŝƚĞĚĂƚƚŚĞZĞŐŝƐƚĞƌĞĚKĸĐĞŽĨƚŚĞŽŵƉĂŶǇ͕EŽ͘ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ͕ZĂũĂŐŝƌŝǇĂ ŶŽƚůĂƚĞƌƚŚĂŶϰϴŚŽƵƌƐďĞĨŽƌĞƚŚĞƟŵĞĂƉƉŽŝŶƚĞĚĨŽƌƚŚĞŵĞĞƟŶŐ͘

94 ODEL ANNUAL REPORT ODEL ANNUAL REPORT 95 CORPORATE INFORMATION

EĂŵĞŽĨĐŽŵƉĂŶǇ ƵĚŝƚŽŵŵŝƩĞĞ Odel PLC Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂͲŚĂŝƌŵĂŶ Mr. Paul Topping Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ;ZĞƐŝŐŶĞĚǁ͘Ğ͘Ĩ͘ϰ:ƵůǇϮϬϭϰͿ >ĞŐĂůĨŽƌŵ Public Limited Liability Company Incorporated in Sri Lanka in 1990 ZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞ Mr Paul Topping - Chairman Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞǇ/ŐŶĂƟƵƐWĞƌĞƌĂ ZĞŐŝƐƚĞƌĞĚŽĸĐĞŽĨƚŚĞĐŽŵƉĂŶǇ Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ 475/32, Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ;ZĞƐŝŐŶĞĚǁ͘Ğ͘Ĩ͘ϰ:ƵůǇϮϬϭϰͿ <ŽƩĞZŽĂĚ͕ Rajagiriya. ^ĞĐƌĞƚĂƌŝĞƐĂŶĚƌĞŐŝƐƚƌĂƌƐ S S P Corporate Services (Private) Limited ŽŵƉĂŶǇƌĞŐŝƐƚƌĂƟŽŶEŽ͘ 101, Inner Flower Road, Colombo 3 PV 7206 PQ

Auditors Directors (At the year end) Ernst & Young Dƌ͘ZƵĐŚŝ,ƵďĞƌƚ'ƵŶĞǁĂƌĚĞŶĞͲŚĂŝƌŵĂŶ Chartered Accountants Ms. Otara Del Gunewardene 201 De Saram Place Mr. Paul Topping P.O. Box 101 Dƌ͘^ĂŶũĂǇ^ƵŵĂŶƚŚƌŝ<ƵůĂƚƵŶŐĂ Colombo Dƌ͘ƚƵůƵŐĂŵĂŐĞĂŵŝĂŶĂƌĚůĞǇ/ŐŶĂƟƵƐWĞƌĞƌĂ Sri Lanka Mr. Datuk Cheng Yoong Choong Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶ Dƌ͘<ŽŚ,ƵĂƚ>Ăŝ Bankers Dƌ͘,ŝĂEŐĞĞzĞŽǁ;ĂůƚĞƌŶĂƚĞĚŝƌĞĐƚŽƌƚŽ DFCC Bank Mr. Datuk Cheng Yoong Choong) DFCC Vardhana Bank ,ĂƩŽŶEĂƟŽŶĂůĂŶŬ ,ŽŶŐŬŽŶŐĂŶĚ^ŚĂŶŐŚĂŝĂŶŬŝŶŐŽƌƉŽƌĂƟŽŶ ŚĂŶŐĞƐƚŽƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ Bank of Ceylon *Mr. Datuk Cheng Yoong Choong resigned as a Director of the EĂƟŽŶdƌƵƐƚĂŶŬ ŽŵƉĂŶǇǁŝƚŚĞīĞĐƚĨƌŽŵϯϭƐƚDĂǇϮϬϭϰ͘Dƌ͘,ŝĂEŐĞĞzĞŽǁ Sampath Bank ĐĞĂƐĞĚƚŽďĞŚŝƐĂůƚĞƌŶĂƚĞǁŝƚŚĞīĞĐƚĨƌŽŵϯϭƐƚDĂǇϮϬϭϰ Union Bank

Dƌ͘ZĂǇŵŽŶĚdĞŽ<ŚĞŶŐ^ĂŶĂŶĚDƌ͘<ŽŚ,ƵĂƚ>ĂŝƌĞƐŝŐŶĞĚǁŝƚŚ ĞīĞĐƚĨƌŽŵϰƚŚ:ƵůǇϮϬϭϰ͘ /ŶǀĞƐƚŽƌZĞůĂƟŽŶƐ Odel PLC Dƌ͘zŚŐ͘ĂƚƵŬ>ĞĞ<ŽŬ>ĞŽŶŐ͕Dƌ͘dŝĂŶŐŚĞĞ^ƵŶŐĂŶĚDƐ͘ ϰϳϱͬϯϮ͕<ŽƩĞZŽĂĚ tŽŶŐ^ŝĞǁŚƵĂŶǁĞƌĞĂƉƉŽŝŶƚĞĚĂƐŝƌĞĐƚŽƌƐǁŝƚŚĞīĞĐƚĨƌŽŵ Rajagiriya. 4th July 2014. Tel: 0114625700 Web: www.odel.lk Dƌ͘,ĂŵŝĚ'ŚĂǌĂůŝ,ƵƐƐĂŝŶǁĂƐĂƉƉŽŝŶƚĞĚĂƐĂůƚĞƌŶĂƚĞĚŝƌĞĐƚŽƌ ƚŽDƌ͘WĂƵůdŽƉƉŝŶŐǁŝƚŚĞīĞĐƚĨƌŽŵϲƚŚ:ƵůǇϮϬϭϰ͘

96 ODEL ANNUAL REPORT