DIPPED PRODUCTS PLC / ANNUAL REPORT 2008—2009

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Firstlight symbolizes the dawn of a new day, inspiring optimism and evoking expectations. It is also the time for tapping rubber trees. Three quarters of DPL’s requirements in natural rubber is sourced from over 3,000 small farmers owning less than 2 hectares, mainly in the hinterlands of Sri Lanka. Our relationship with these smallholders goes back over 30 years. Through the “Firstlight” initiative, we are seeking to help these farmers realize their potential. Our strategy may sound simple – to pay the rubber small farmers a fair price by removing intermediaries – but it is certainly changing thousands of lives for the better. We are providing technical assistance these farmers so badly need, but rarely receive: educating and empowering them to maximize their income through best practices in planting, field management and harvesting; providing implements and input material to protect and augment crops; and ultimately investing in the development of their communities. All this for sure contribute to another of our larger goals: the sustainable development of land under rubber cultivation. And here, “Firstlight” is helping to preserve the quality of air, regulate the climate and conserve the soil under these verdant man-made forests. “Firstlight” is our way of handling the small rubber farmers with care - the expression of our empathy towards the economically disadvantaged smallholders. D I P P E D P R O D U C T S P L C A N N U A L R E P O R T 2 0 0 8 – 2 0 0 9 3
Chairman’s Statement “Group turnover for the year increased by 7% to Rs 11,896 million with profit before tax of Rs 616 million…” “An important achievement of the year was the complete turnaround of DPTL.” “The Plantations sector recorded a pre-tax profit of Rs 294 million, .…” Dear Shareholder, I take pleasure in presenting the Annual Report of your Company for the financial year ended 31 March 2009. Directorate Mr. R W Soysa retired on 31 March 2009 after serving the Company from its inception of which 21 years as an Executive Director. Dr. W S E Fernando too will retire on 31 May 2009. He joined the Company in 1988 and was appointed an Executive Director in 1994. My colleagues on the Board and I thank both the gentlemen for their exceptional contributions over the years and wish them good health and contentment in retirement. Mr. F Mohideen, former Deputy Secretary to the Treasury was invited to the Board as an Independent Non-Executive Director on 10 July 2008. Mr. K A L S Fernando, General Manager – Quality of DPL was appointed an Executive Director with effect from 01 April 2009. Mr. L G S Gunawardana, Director/General Manager of Dipped Products (Thailand) Limited will be appointed to the Board as an Executive Director from 01 June 2009. Results Group turnover for the year increased by 7% to Rs 11,896 million with profit before tax of Rs 616 million same as in the previous year. The profit attributable to the Shareholders of the Company reduced to Rs 363 million compared to Rs 371 million in the year 2007/2008. The profit from manufacturing operations in Sri Lanka improved 14% to Rs 302 million from Rs 264 million last year. This could have been better, if not for the slowdown in orders during the last quarter from the industrial segment of the market. The trade union action at the Venigros factory over several months of the year reduced output and adversely affected both revenue and profit. Medical glove operations of Dipped Products (Thailand) Limited (DPTL) substantially recovered in the second half of the year reducing its losses from Rs 271 million in the previous year to Rs 159 million. A further provision of Rs 50 million was however thought prudent in Dipped Products <strong>PLC</strong>’s accounts against its investment in DPTL due to that company’s asset base being eroded by the losses incurred to date. An important achievement of the year was the complete turnaround of DPTL. The company incurred losses of nearly the same level as the previous year up to the first half (and in line with the final result) but succeeded to run at break even levels for the next six months. It is heartening that the company has now completed the first quarter of the current year with a significant net profit. I expect this operation to contribute greatly to the Group in the future. Recovery of the Hand Protection sector in both Sri Lanka and Thailand in the last quarter was largely possible because of the many profit improvement measures that were implemented. ICOGUANTI S.p.A. too performed to expectations, improving on both turnover and profit. The Plantations sector recorded a pre-tax profit of Rs 294 million, down by 36% from Rs 458 million in the earlier year. The sharp 4 D I P P E D P R O D U C T S P L C A N N U A L R E P O R T 2 0 0 8 – 2 0 0 9
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Page 7 and 8: INPUT MATERIALS AND IMPLEMENTS TO A
Page 9 and 10: Managing Director’s Review “The
Page 11 and 12: Managing Director’s Review “…
Page 13 and 14: Managing Director’s Review “KVP
Page 15 and 16: Managing Director’s Review “Our
Page 17 and 18: partnerships Our partnership with B
Page 19 and 20: technology 18 The high speed latex
Page 21 and 22: environment “Firstlight” cares
Page 23 and 24: IT TRAINING CENTRE INGESTRE ESTATE
Page 25 and 26: INPUT MATERIALS COMMUNITY CAPACITY
Page 27 and 28: Financial Calendar 2008/2009 Interi
Page 29 and 30: Annual Report of the Board Donation
Page 31 and 32: Annual Report of the Board Stock ma
Page 33 and 34: Corporate Governance Responsibiliti
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Page 37 and 38: Corporate Governance Level of compl
Page 39 and 40: Audit Committee Report Composition
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Page 43 and 44: Statements of Changes in Equity Con
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Page 47 and 48: Accounting Policies 3.1.2 Associate
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Notes to the Financial Statements A
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Ten Year Financial Review Gross Div
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The Share 1. Stock exchange listing
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The Share History of dividend and s
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Notice of Meeting DIPPED PRODUCTS P
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Form of Proxy INSTRUCTIONS AS TO CO
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DIPPED PRODUCTS PLC / ANNUAL REPORT 2008—2009

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