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

Corporate Governance (contd.)
2. Audit Committee
The Audit Committee is a sub committee of the Board of Directors of Elpitiya Plantations PLC. The Committee comprised
of three Non-Executive Directors of whom one member is a Fellow of the Institute of Chartered Accountants of Sri Lanka.
The Audit Committee is headed by an Independent Non-Executive Director. The names of the members of the Audit
Committee are as follows:
Dr Anura Ekanayake (Chairman) - Independent Non-Executive Director
Mr Lalit N de S Wijeyeratne - Independent Non-Executive Director
Mr Devan de Mel - Non-Executive Director (resigned w.e.f. 10.08.2011)
The Audit Committee is entrusted with the responsibility of monitoring and evaluating the internal control functions,
evaluating the performance of the External Auditors and make their recommendations to the Board on their reappointment
or removal which is subject to the approval of the shareholders at the Annual General Meeting.
The Audit Committee is also entrusted with the responsibility of monitoring and guiding the Internal Audit function and
reviewing the effectiveness of the internal controls.
The Audit Committee Report appears on Page 11 of this report.
3. Internal Control
The Company has set out effective systems of control including Financial, Operational and Compliance.
The Company’s Internal Audit Team mainly focuses on transaction assurances, positive assurances, internal controls,
routine checks, special reviews and evaluations. The team also assists the Management in evaluating various Operational
Risks and ensures that the systems and controls are in place.
The Board of Directors is assured by the Internal Audit Team of the adequacy of the internal controls, compliance with
the code of Business Ethics and other applicable corporate policies.
The Board is fully conscious that any internal control system contains inherent limitations and no system of internal
controls could provide absolute assurance against the occurrence of material errors, poor judgement in decision making,
human errors, losses, frauds or irregularities. The Board has taken appropriate action to minimize such situations.
E. OTHER
1. Organization
The Board has put in place an organizational structure with formally defined lines of responsibility, reporting and
appropriate limits of authority. There are established procedures for planning and investment, risk management and for
information and reporting systems to monitor the Company’s businesses.
2. Management Committee
The Management Committee meets monthly to evaluate the strategic plans, actual performance, and corrective actions
with a view to achieve the desired goals. The Committee also periodically reviews the Company’s various Policies
involving agriculture, manufacture, personnel, remuneration, asset management, and other controls. The decisions of the
Management Committee meetings are communicated to the Estate Management through the Cluster General Managers
at the monthly Cluster Meetings with the Managers.
3. Managing Agent
Aitken Spence Plantation Managements Limited (ASPM) has been appointed as the Managing Agent, since the
acquisition of the Company in August 1997. ASPM also owns the controlling interest of the Company.
The Board of ASPM has clear objectives in advising the Board of the Company, on strategic and operational decisions
as the Managing Agents of the Company. The Board of ASPM also meets at least four times a year to review the
performance of the Company.
Elpitiya Plantations Plc Annual Report 2010/11
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