ASIAN HOTELS AND PROPERTIES PLC AnnuAl RepoRt 2012/13

annual report of the board of directorsPASSIONASIAN HOTELS AND PROPERTIES PLCAnnual Report 2012 /1328SustainabilityThe Company has taken specific steps,particularly, in ensuring the conservation ofits natural resources and environment as wellas addressing material issues highlightedby its stakeholders. Every endeavour ismade to minimise the adverse effects on theenvironment to ensure sustainable continuityof our natural resources. The Company’ssustainable practices are detailed on pages62 to 117.EmploymentThe Company has an equal opportunitypolicy in respect of employment and theseprinciples are enshrined in specific selection,training, development and promotion policies,ensuring that all decisions are based on merit.The Group practices equality of opportunityfor all employees irrespective of ethnic origin,religion, political opinion, gender, maritalstatus or physical disability.Details of the Group’s human resourceinitiatives are detailed in the employees’section of the Sustainability Report.The number of persons employed by theCompany and Group as at 31st March 2013was 1,225 (2012 – 1,265) and 2,067 (2012 –2,103) respectively.There have been no material issues pertainingto employees and industrial relations of theCompany and the Group during the FinancialYear.Supplier PolicyThe Group applies an overall policy ofagreeing and clearly communicating termsof payment as part of the commercialagreements negotiated with suppliers, andendeavours to pay for all items properlycharged in accordance with these agreedterms. As at 31st March 2013, the trade andother payables of the Company and Groupamounted to Rs. 465 Mn (2012 – Rs. 615Mn) and Rs.643 Mn (2012 - Rs. 845 Mn),respectively.Statutory PaymentsThe Directors confirm that to the best oftheir knowledge, all taxes, duties and leviespayable by the Company and its Subsidiary,all contributions, levies and taxes payable onbehalf of, and in respect of the employeesof the Company and its Subsidiary, and allother known statutory dues as were due andpayable by the Company and its Subsidiaryas at the Balance Sheet date have beenpaid or, where relevant provided for, exceptas specified in Note 39 to the FinancialStatements, covering Contingent Liabilities.Risk ManagementThe Board confirms that there is an ongoingprocess of identifying, evaluating andmanaging any significant risks faced bythe Company, where annual risk reviewsare carried out by the Enterprise RiskManagement Division and the risks are furtherreviewed each quarter by each businessunit. The headline risks of each companyis presented to its respective Board AuditCommittee for review by the business unit.The details of the Risk Report and RiskManagement Process are set out on pages30 to 33 of this Report.Internal ControlThe Board, through the involvement of theGroup Business Process Review (Group BPR)Division, takes steps to gain assurance onthe effectiveness of control systems in place.The Audit Committee receives regular reportson the adequacy and effectiveness of internalcontrols in the Company, compliance withlaws and regulations and established policiesand procedures of the Company.The Head of Group Business Process ReviewDivision has direct access to the Chairmanof the Audit Committee. Reports of theoutsourced internal auditors are also reviewedby the Committee on matters pertaining to theCompany.The Directors acknowledge their responsibilityfor the Company’s systems of internalcontrols. The statements of CorporateGovernance on pages 34 to 57 sets outin detail the Company’s system of internalcontrols.Related Party TransactionsThere were no related party transactionsrequired to be disclosed under the ListingRules of the Colombo Stock Exchange otherthan as disclosed under Note 35 to theFinancial Statements.DonationsTotal Donations made by the Companyduring the year amounted to Rs. 6.9 Mn anddonations made by the Group amounted toRs.10.9 Mn (31st March 2012-CompanyRs. 6.9 Mn/Group Rs. 10.6 Mn).Events Subsequent to the BalanceSheet DateExcept for the matters disclosed in Note 41to the Financial Statements on Page 166there are no material events which requireadjustments or disclosure in the FinancialStatements.