Annual Report.CDR - Colombo Stock Exchange

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STATEMENT OF DIRECTORS RESPONSIBILITIES IN RELATION TO FINANCIAL STATEMENTS The Directors are required by relevant statutory provisions to prepare financial statement for each financial year ,which gives a true and fair view of the State ofAffairs of the Company for that period. For the period under review the statutory provisions are in the CompaniesAct No 7 of 2007, Finance Leasing Act. No 56 of 2000 and the Finance Companies Act No 78 of 1988 . In preparing the Financial Statements appropriate accounting policies have been selected and applied consistently and reasonable and prudent judgment and estimates have been made. The applicable Sri Lanka Accounting Standards have been followed and explained in the notes to the Financial Statements. The Directors are responsible for ensuring that the Company keeps sufficient Accounting records to disclose with the reasonable accuracy of the financial position of the Company and to ensure that the Company's Financial Statements comply with the provisions of the Companies Act No .7 of 2007, Finance Leasing Act No. 56 of 2000 Sri Lanka Accounting Standards and the Finance Companies Act No.78 of 1988 . The Directors are also responsible to ensure that reasonable measures are taken to safe guard the assets of the Company at all times. In this context they have established appropriate system of internal controls with a view to preventing and detecting of frauds and other irregularities. In preparing Accounts the Directors continue to adopt the going concern basis. The Directors after reviewing the Company's Budget and borrowing facilities consider that the Company has adequate resources to continue in operation. By Order of the Board (Sgd.) Miss PS Watson Company Secretary 14th 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 15
A U D I T C O M M I T T E E R E P O RT The Audit Committee of The Finance Company PLC was formally constituted in November 1998. Since the reconstitution of the Board by the Monetary Board of the Central Bank of Sri Lanka permission was granted in December 2009 to reconstitute theAudit Committee with the following Non-Executive Directors: Mr T N M Peiris – Chairman ofAudit Committee MrAR Gunawardena - Non Executive Director MrYB Ratnayake – Non –Executive Director The Audit Committee met three times during the period under review and four times since 1 st April 2010 to th 30 August 2010 and their scope of work has been detailed in the Corporate Governance report. The Attendance of the Audit Committee members is disclosed below for the period December 2009 to 31 March 2010: Name of Director Position Attendance at Audit Committee Meetings Mr T N M Peiris Chairman of Audit 3/3 Committee Mr A R Gunewardena Non-Executive Director 2/3 Mr Y B Ratnayake Non-Executive Director 2/3 st The Head of Finance, Head of Internal Audit and the External Auditors attend these meeting and the CEO attends these meetings by invitation. The External Auditors were present at every meeting and has done an assessment of the internal control systems and procedures. The committee has discussed the comments at these meetings. The Audit Committee is empowered to evaluate the adequacy and effectiveness of the accounting and internal control systems of the Company and monitor compliance with the statutory requirements. At these meetings, Audit Committee reviews the Quarterly and <strong>Annual</strong> financial statements of the Company prior to publication. During the year under review, the Audit committee also reviewed the performance of the Internal Audit Division and approved the InternalAudit program for the following financial year. The Audit Committee also examines the findings and recommendations of the internal audit <strong>Report</strong>s and ensures that corrective action is taken to overcome the noted deficiencies with a view of improving internal control and to mitigate business risk. The Audit Committee also looked into the resource requirement of the internal audit division and approved the recruitment of additional staff as requested by Head of InternalAudit. The Committee also reviewed the nature, approach and the scope of the external auditors and management letters issued and the actions taken by the Company on the issues raised. The Committee was of the view that the directors are held responsible for accuracy, reliability and completeness of the financial statements prepared and published by the Company and that they are in compliance with all statutory requirements The Audit Committee has recommended to the Board of Directors the re-appointment of Tudor V Perera & Co Chartered Accountants as auditors of the Company for the financial year 2010/2011. By Order of the Board Sgd Mr T N M Peiris Chairman of Audit Committee 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 16
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 12 and 13: 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 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………

Annual Report.CDR - Colombo Stock Exchange

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