2007 - Ceylon Petroleum Corporation

41
Directors’ Interest in Contracts &
Related Party Transaction
Directors’ interest in the contracts with
the Corporation are referred in Note 21
to the Financial Statements.
Compliance with Laws and
Regulations
The Corporation has not engaged in any
activities contravening the laws and
regulations. All those responsible for
ensuring compliance with the provisions
in various laws and regulations confirm
their compliance to the Board.
Future Developments
The Corporation is planning to re-enter
into Bunkering, Lubricant and LPG
business while making all efforts to
expand the refinery capacity with the
assistance of the Government of the
Islamic Republic of Iran.
Environmental Protection
CPC being the market leader of
petroleum products in the island and the
owner of the only local refinery in the
country is fully aware of its obligation to
minimise environmental pollution. We
are concerned about the environmental
safety in handling and usage of
petroleum products.
A capital project which enables to reduce
sulphur content in diesel to less than
0.5% was commissioned in 2003 in the
refinery and the Corporation restricts its
diesel sales of more than 0.3% sulphur
from 2004 onwards. The sulphur in diesel
is restricted to 0.05% from this date.
Statutory Payments
The Directors, to the best of their
knowledge and belief are satisfied
that all statutory payments due to
the Government and in relation to
employees have been made on time.
Events Occurring after the
Balance Sheet Date
In the opinion of the Directors, no
material event of an unusual nature has
arisen in the interval between the end
of the financial year and the date of this
Report, which could affect substantially
the results of the operation of the
Corporation for the financial year in
respect of which the Report is prepared.
Note 22 to the Financial Statements
carries no such material events.
Going Concern
The Board of Directors has reviewed the
Corporation’s business plan and is satisfied
that the Corporation has adequate
resources to continue its operations in
the foreseeable future. Accordingly, the
Financial Statements are prepared based
on the going concern basis.
Appointment of Auditors
The Auditor General is the Auditor of
the Corporation. He has been appointed
in terms of the provisions in Article 154
of the Constitution of the Democratic
Socialist Republic of Sri Lanka.
For and on behalf of the Board of
Directors
Ashantha L.F. De Mel
Chairman
30th September 2008
Colombo, Sri Lanka
ANNUAL REPORT 2007 | CEYLON PETROLEUM CORPORATION