Elpitiya Plantations Plc Annual Report 2010/11 - Colombo Stock ...

Audit Committee Report
Composition of Audit Committee
Compliance
The Audit Committee (AC) comprises of 2 Independent Non
Executive Directors – M/s Dr. Anura Ekanayake (Chairman) and L
N de S Wijeyeratne and Devan de Mel, Non Executive Director.
The Chief Internal Auditor of Aitken Spence PLC (AS) and Mr. W
M Ratnayake, Manager Internal Audit Plantations carry out
regular internal audits on the estates and also attend the meetings
by invitation. Further the Managing Director (MD), the Chief
Executive Officer (CEO) and the Deputy General Manager (DGM
- Finance) are also present at meetings. In addition, the estate
General Managers and the estate Managers whose audit reports
are reviewed and discussed are also present at the meetings.
Activities
The Committee ensures the adoption of effective internal controls,
and compliance with the Sri Lanka Accounting Standards and
the prevailing laws of the country based on guidelines provided
by the respective regulatory authorities in all aspects and in the
preparation of financial statements.
External Audit
The Committee has assessed the performance of the external
auditors M/s Ernst & Young and is of the opinion that the external
auditors do not have any relationship with the Company that
would have an impact on their independence.
The committee met during the financial year and reports from
several estates arising from both field and factory operations
including financial reports were reviewed and discussed. Having
reviewed the audit reports of several estates, the Committee
recommended several controls, risk mitigation strategies and
internal monitoring mechanisms to mitigate frauds, discrepancies
and other financial risks and issues that could occur on the
estates and in the Company. In addition, the Audit Committee
also reviewed the financial statements for the year and approved
the accounts for signature.
Dr. Anura Ekanayake
Chairman
Audit Committee
23 rd August 2011
Report of the Remuneration Committee
The Remuneration Committee (RC) consists of Mr. Malik
Fernando, Non Executive Director as Chairman and two Non
Executive Independent Directors, M/s Dr. Anura Ekanayake and
Lalit N de S Wijeyeratne as members who form the committee.
The Non Executive Independent Directors are independent of
management and are able to exercise independent judgment in
the decisions of the committee, as they do not have any business
or other relationships with the Company or its employees. The
Managing Director (MD) of Elpitiya Plantations PLC (EPP) attends
the meeting by invitation. The RC met once during the year under
review prior to considering salary increases.
The policy that was adopted for remuneration of employees was
based on competitive remuneration structures of other plantation
companies, and also with the objective of retaining professional
and managerial talent and encouraging and motivating good
performers to perform at a higher level. The Company has a
formal performance appraisal system and regular evaluations are
carried out to evaluate each employee’s performance.
The remuneration policy adopted also takes into consideration,
the cost of living and inflation and the basic needs of the
employees particularly in the lower income groups. The
performance of the Company and affordability together with
economic conditions that prevail were also considered in
recommending increases in remuneration.
The RC having deliberated the performance of all employees in
the Company, approved revisions of individual remuneration
packages based on individual performance, industry norms and
the contribution of the individuals in the performance of the
Company.
Mr. Malik J Fernando
Chairman
Remuneration Committee
23 rd August 2011
Elpitiya Plantations Plc Annual Report 2010/11
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