Annual Report 2010-2011 - Colombo Stock Exchange

Notes to the Financial Statements
1. CORPORATE INFORMATION
Richard Pieris and Company PLC is a public limited liability
company incorporated and domiciled in Sri Lanka and listed
on the Colombo Stock Exchange. The registered office and
principal place of business of the company is located at 310,
High Level Road, Nawinna, Maharagama.
In the Annual Report of the Board of Directors and in the
financial statements, “the company” refers to Richard Pieris and
Company PLC. as the holding company and “the group” refers
to the companies whose accounts have been consolidated
therein. The financial statements for the year ended 31st March
2011 were authorized for issue by the Directors on 27th May
2011.
The principal activities of the group are stated in the Annual
Report of the Board of Directors.
All values presented in the financial statements are in Sri Lanka
rupees thousands (Rs.’000s) unless otherwise indicated. The
significant accounting policies are discussed below.
1.1 GENERAL POLICIES
1.1.1 Statement of compliance
The Balance Sheet, Income Statement, Statement of Changes
in Equity and the Cash Flow Statement, together with the
accounting policies and notes (the “financial statements”) have
been prepared in compliance with the Sri Lanka Accounting
Standards (SLAS) issued by the Institute of Chartered
Accountants of Sri Lanka.
1.1.2 Basis of preparation
The financial statements, presented in Sri Lanka rupees, have
been prepared on an accrual basis and under the historical
cost convention unless stated otherwise. The preparation and
presentation of these financial statements is in compliance with
the Companies Act No. 07 of 2007.
1.1.3 Changes in accounting policies
The accounting policies adopted are consistent with those of
the previous financial year.
1.1.4 Comparative information
The accounting policies applied by the group are consistent
with those used in the previous year. Previous year’s figures
and phrases have been re-arranged, wherever necessary, to
conform to the current year’s presentation.
1.1.5 Events after the balance sheet date
All material post balance sheet events have been considered
and appropriate adjustments or disclosures have been made in
the respective notes to the financial statements.
1.2 CONSOLIDATION POLICY
1.2.1 Basis of consolidation
The consolidated financial statements include the financial
statements of the company, its subsidiaries and other
companies over which it has control.
The Group’s Financial Statements comprise the consolidated
financial statements of the company and the group which have
been prepared in compliance with the group’s accounting
policies.
All intra group balances, income and expenses and profits and
losses resulting from intra group transactions are eliminated in
full.
1.2.2 Acquisitions and divestments
Acquisitions of subsidiaries are accounted for using the
purchase method of accounting. The results of subsidiaries,
joint ventures and associates acquired or incorporated during
the year have been included from the date of acquisition, or
incorporation while results of subsidiaries, joint ventures and
associates disposed have been included up to the date of
disposal.
1.2.3 Subsidiaries
Subsidiaries are those enterprises controlled by the parent.
Control exists when the parent holds more than 50% of the
voting rights or otherwise has a controlling interest.
Subsidiaries are consolidated from the date the parent obtains
control until the date that control ceases.
Subsidiaries consolidated have been listed in the Group
Structure.
The total profits and losses for the period, of the Company and
of its subsidiaries included in consolidation and all assets and
liabilities of the Company and of its subsidiaries included in
consolidation are shown in the Consolidated Income Statement
and Balance Sheet respectively.
Minority interests, which represents the portion of profit or
loss and net assets not held by the group, are shown as a
component of profit for the period in the Income Statement and
as a component of equity in the Consolidated Balance Sheet,
separately from parent shareholders’ equity.
The Consolidated Cash Flow Statement includes the cash
flows of the Company and its subsidiaries.
1.2.4 Associates
Associates are those investments over which the group has
significant influence and holds 20% to 50% of the equity and
which are neither subsidiaries nor joint ventures of the group.
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Annual Report 2010/2011 | Richard Pieris and Company PLC