Annual Report.CDR - Colombo Stock Exchange

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R E P O RT O F T H E D I R E C T O R S ( C O N T D . ) INTEREST REGISTER The Company maintains an Interest Register in Compliance with the Companies Act No. 7 of 2007. The details of the Shareholdings of Directors have been disclosed in this report and there have been no changes in the holdings of the Directors for the year under review. The Directors of Company has made general disclosures regarding related party disclosures and these disclosures are appearing in Note 36 to the Financial Statements appearing on page 50 of theAnnual Report. GOING CONCERN Astatement relating to the going concern is disclosed in Note 39 to the Financial Statement appearing on page 52 of theAnnual report. CONTRIBUTION TO CHARITIES st The Company has not made any contributions to charities for the financial year ended 31 March 2010 CORPORATE GOVERNANCE The Board has taken necessary measures to ensure proper systems and procedures are in place within the Company thereby adopting a sound Corporate Governance practice. With the current restructuring process necessary steps will be taken to comply with the mandatory requirements of the Colombo Stock Exchange and the Corporate Governance Direction issued by the Monetary Board of the Central Bank of Sri Lanka. POST BALANCE SHEET EVENTS Subsequent to the date of the Balance Sheet no circumstances have occurred which would require any disclosure in the Accounts, other than those disclosed in note 37 to the financial statements found on page 52 of theAnnual Report. ACCOUNTING POLICIES There have been no changes in the Accounting Policies adopted by the Company since the last Balance Sheet date. AUDITORS The Accounts for the year have been audited by M/s Tudor V Perera & Company, Chartered Accountants, who offer themselves for re appointment The retiring auditors (an independent firm) have indicated their willingness to continue in office and a resolution to re-appoint them and to authorize the Board to determine their remuneration will be proposed at the forthcomingAnnual General Meeting. st The Auditors have been paid a fee of Rs 1,500,000.00 as Audit Fee for the financial year ended 31 March 2010 which has been approved by the Board. The Directors recommend their re appointment By Order of the Board Sgd. K JYatawara Sgd. Mr T B Ekanayake (Sgd) Miss PS Watson Director/CEO Key Executive-Director Company Secretary th 14 October 2010 T H E F I N A N C E C O . P L C - A N N U A L R E P O RT 2 0 0 9 - 2 0 1 0 11
R I S K M A N A G E M E N T As a registered finance company The Finance Company PLC is subject to the regulations and directions of the Central Bank of Sri Lanka (CBSL). It is under the purview of Department of Supervision of Non Banking Financial Institutions of CBSL. A finance company is generally subject to the risks associated with maturity mismatch of its assets and liabilities. The liabilities which consist mostly of public deposits carry maturities up to one year whilst the advances made are repaid over periods ranging up to four years. The ability of the organization to attract new deposits and to renew a significant percentage of the maturing deposits permits it to manage the associated liquidity risk. The re pricing of the liabilities ahead of the assets carries significant interest rate risk and impact on profitability when interest rates are rising. However the margin on lending is expected to mitigate and absorb this risk. The Key Executives of the company review the strategic and market risks impacting the organization. The business portfolio of the company includes land purchased for development and selling which carries significant business risks in the present market. Emerging growth areas such as infrastructure development, tourism etc in the economy provides opportunities to this company. Monthly performance is reviewed against targets to identify and rectify any deficiencies. Internal Audit department of the company carries out periodic reviews of the effectiveness of the systems and procedures in addition to verifying compliance. The Audit Committee reviews these reports and the actions taken to address the issues if any identified by the Internal Audit. External Audit also provides a management letter identifying areas which need management attention and these are addressed by the company. The company intends developing a comprehensive risk management policy and establishing a Risk Management Committee andAsset Liability Committee in the near future. T H E F I N A N C E C O . P L C - A N N U A L R E P O RT 2 0 0 9 - 2 0 1 0 12
Page 2 and 3: C O N T E N T S Financial Highlight
Page 4 and 5: C O R P O R AT E I N F O R M AT I O
Page 6 and 7: K E Y E X E C U T I V E S M E S S A
Page 8 and 9: R E V I E W O F O P E R AT I O N S
Page 10 and 11: R E P O RT O F T H E D I R E C T O
Page 14 and 15: C O R P O R AT E G O V E R N A N C
Page 16 and 17: STATEMENT OF DIRECTORS RESPONSIBILI
Page 18 and 19: TELEGRAM: ASSETS, COLOMBO E-MAIL- t
Page 20 and 21: BALANCE SHEET AS AT 31.3.2010 31.3.
Page 22 and 23: CASH FLOW STATEMENT FOR THE YEAR EN
Page 24 and 25: S I G N I F I C A N T A C C O U N T
Page 32 and 33: NOTES TO THE FINANCIAL STATEMENTS F
Page 34 and 35: NOTES TO THE FINANCIAL STATEMENTS (
Page 58 and 59: S H A R E H O L D E R I N F O R M A
Page 60 and 61: B R A N C H N E T W O R K AMBALANTO
Page 62 and 63:
S E RV I C E C E N T R E S Maharaga
Page 64 and 65:
F O R M O F P R O X Y I/We………
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Annual Report.CDR - Colombo Stock Exchange

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