Annual Report 2010-2011 - Colombo Stock Exchange

P.D.Samarasinghe resigned from the Board with effect from
15th February 2011.
Relationship with Shareholders
The Board maintains healthy relationships with its key
shareholders (individual and institutional) while maintaining
a dialogue with potential shareholders as well. The Annual
General Meetings are held to communicate with the
shareholders and their participation is encouraged. Apart
from this, its principal methods of communication include
the corporate website, the annual report, quarterly financial
statements and press releases.
Internal Controls
The Board is responsible for instituting on effective internal
control system to safeguard the assets of the Company and
ensure that accurate and complete records are maintained from
which reliable information is generated. The system includes all
controls including financial, operational and risk management.
Strategies adopted by the Company to manage its risk are set
out in its report on Risk Management on pages 41 - 44.
Apart from the strategic plans covering a three year time
horizon, a comprehensive budgetary process is in place, where
annual budgets, identifying the critical success factors and
functional objectives, prepared by all subsidiaries are, approved
by the Board, at the commencement of a financial year, and
its achievement monitored monthly, through a comprehensive
monthly management reporting system. Clear criteria and
benchmarks have also been set out for the evaluation of capital
projects and new investments.
The Internal Audit Division reporting to the Chairman, regularly
evaluates the internal control system across the organization
and its findings are reviewed first by the Audit Committee and
significant issues are thereafter reported to the Board. The
Board reviewed the internal control procedures in existence and
are satisfied with its effectiveness.
Relationship with Other Stakeholders
The Board identifies the importance of maintaining a healthy
relationship with its key stakeholders and ensures the Group
as a whole inculcates this practice. Internal communication is
mainly conducted through the quarterly newsletter, e-mails,
memos and circulars.
The Board also ensures that the Group policies and
practices are in line with the Company’s values and its
social responsibilities. The group promotes protection of the
environment, health and safety standards of its employees and
others within the organization. The relevant measures taken are
given in detail in the Corporate Social Responsibility report on
pages 33 - 34.
Compliance
The Board places significant emphasis on strong internal
compliance procedures. The Financial Statements of the Group
are prepared in strict compliance with the guidelines of the Sri
Lanka Accounting Standards and other statutory regulations.
Financial statements are published quarterly in line with the
Listing Rules of the Colombo Stock Exchange through which all
significant developments are reported to shareholders quarterly.
The Board of Directors, to the best of their knowledge and
belief, are satisfied that all statutory payments have been made
to date.
Going Concern
The Directors have continued to use the ‘Going Concern’
basis in the preparation of the Financial Statements, after
careful review of the financial position and cash flow status
of the Group. The Board of Directors believes that the Group
has adequate resources to continue its operation for the
foreseeable future.
Name of Director Executive Non- Executive Independent
Dr S Yaddehige
Mr. J H P Ratnayeke
Mr. W J V P Perera
Prof. Lakshman R Watawala
Prof. Susantha Pathirana
Mr. M M Udeshi
Corporate Governance Requirements under Section 7 of the Listing Rules issued by the Colombo Stock Exchange.
Colombo Stock Exchange
Status of Richard Pieris and Company PLC
Non Executive Directors
In Compliance
Independent Directors
In Compliance
Disclosures relating to Directors
In Compliance
Remuneration Committee
In Compliance
Audit Committee
In Compliance
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Annual Report 2010/2011 | Richard Pieris and Company PLC