Notes to the Financial Statements Contd.... - Colombo Stock Exchange

K E G A L L E P L A N T A T I O N S P L C 2 0 0 9

K E G A L L E P L A N T A T I O N S P L C 2 0 0 9

Contents
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Company Profile 2
Financial Highlights 3
Chairman’s Review 4
Segmental Analysis 6
Profile of Directors 8
Our Estates 10
Key Data - Estates 11
Corporate Social Responsibility 12
Financial Review 14
Review of Operations 15
Statement of Value Added 17
Corporate Governance 18
Report of the Audit Committee 20
Report of the Remuneration Committee 21
Risk Management 22
Environmental Guidelines 26
Annual Report of the Board of Directors 28
Statement of Directors’ Responsibilities 31
Auditor’s Report 32
Balance Sheet 33
Income Statement 34
Cash Flow Statement 35
Statement of Changes in Equity 37
Notes to the Financial Statements 38
Ten Year Summary 66
Investor Information 67
Definitions 69
Notice of Meeting 70
Form of Proxy 71
Corporate Information back inner cover

Company Profile
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
The Government of Sri Lanka as part of its restructuring
plan for the Plantation Industry decided to privatize
this sector and in June 1992 incorporated 22 Regional Plantation
Companies. Then the Government assigned these Companies,
Estates that had been previously vested with the Government and
managed by JEDB/SLPC on a 53 year lease. Separate Managing
Agents were also selected to manage each of these Companies.
Kegalle Plantations PLC (KPL) was one such Company and it
was allotted 21 Estates which in total have a land base of 10,000 Ha
in and around Kegalle District and in the Badulla District. Of this
land base around 4,900 Ha are under Rubber, 1,400 Ha are under
Tea and another 500 Ha under Coconut. The Company produces
around 5.1 Mn Kilos of Rubber and 2.5 Mn Kilos of Tea inclusive
of bought crop. It has an employee strength of 7,766.
The Managing Agent appointed by the Government was
RPK Management Services (Pvt.) Ltd (RPK), which was a 50:50
joint venture Company between Richard Pieris & Company PLC
and John Keells Holdings PLC. The ownership of the Company
changed during the latter part of 1995 when the Government sold
20% of the shares it held to the public and the majority stake of
51% to RPK Management Services (Private) Limited. It also gifted
10% or 2 Mn shares to over 8,000 eligible employees. In May 1997
the Government sold further 19% shares it held through the CSE,
to the public and thereby, totally exited from the ownership of
Kegalle Plantations PLC. However, the Government holds through
the Secretary to the Treasury one share which is called Golden
2
Share and it gives the Government the title “Golden Shareholder”
of the Company.
The Golden Shareholder has certain special rights than that is
enjoyed by a normal shareholder and these rights are incorporated
in the Articles of Association of the Company. The Prospectus
offered to the public also contained these clauses. Some of the
important clauses are given in this Annual Report under “Investor
Information”.
At the time it acquired the 51% stake RPK also invested Rs
50 Mn in convertible debentures of KPL. In February 1998, these
Debentures were converted to 5 million Ordinary Shares of
Rs. 10/- each and assigned to RPK, increasing the Share Capital
of the Company to Rs. 250 Mn. In March 2004, Richard Pieris
& Company PLC purchased the balance 50% stake in RPK from
Jhon Keells Holdings PLC, thereby making RPK, a fully owned
subsidiary. Consequent to the change in the ownership, RPK was
renamed as RPC Management Services (Pvt.) Limited. During
the year 2008 the ownership of the Company was transferred
from RPC Management Services (Pvt.) Limited to RPC Plantation
Management Services (Pvt.) Limited. Currently RPC Plantation
Management Services (Pvt.) Limited holds 68% stake in KPL.
Kegalle Plantations PLC is the largest rubber producing
Company among the Regional Plantation Companies accounting
for 5.1 Mn kgs of average production per annum.

Performance - Year Ended 31st March
6,000
5,000
4,000
3,000
2,000
1,000
0
3,000
2,000
1,000
0
Crop
kgs '000
2006 2007 2008 2009
Turnover
Rs/ Million
RUBBER TEA COCONUT
2006 2007 2008 2009
RUBBER
TEA
Financial Highlights
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
450
400
350
300
250
600
500
400
300
200
100
0
Borrowings
Rs/ Million
428
318
298
2006 2007 2008 2009
Net Cash Generated from Operations
Rs/ Million
2009 2008 Variance %
Turnover Rs’ 000 1,927,762 2,163,030 (10.88)
Profit before Interest, Tax and Extraordinary Adjustments Rs’ 000 351,436 481,984 (27.09)
Profit after Tax Rs’ 000 177,411 427,597 (58.51)
Gross Dividends Rs’ 000 25,000 125,000 (80.00)
Capital Expenditure Rs’ 000 165,940 119,209 39.20
Financial Position as at 31st March
Fixed Assets Rs’ 000 1,564,998 1,466,538 6.71
Current Assets Rs’ 000 946,549 871,614 8.59
Total Assets Rs’ 000 2,511,547 2,338,152 7.41
Current Liabilities Rs’ 000 196,801 222,116 11.39
Shareholders’ Funds Rs’ 000 1,347,281 1,219,870 10.44
Stated Capital Rs’ 000 250,000 250,000 -
Capital Employed Rs’ 000 1,694,822 1,517,713 11.67
Key Indicators
Earnings per share % 7.10 17.10 (58.51)
Net Assets per share Rs 53.89 48.79 10.44
Dividends per share Rs 1.00 5.00 (80.00)
Market Price per share Rs 19.00 60.00 (68.33)
Return on Capital Employed % 11.28 28.88 (60.94)
Market Capitalisation Rs’ 000 475,000 1,500,000 (68.33)
Return on Average Equity % 13.82 35.52 (61.09)
3
2006 2007 2008 2009
347

Chairman’s Review
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Dear Shareholder
It is a pleasure to present the Annual Report and Audited
Accounts of Kegalle Plantations PLC having completed
another successful financial year ending 31st March 2009. The
Company was able to achieve its best ever performance during
the first half of the financial year. By the end of August 2008, the
Company recorded a 42% increase in profits than the previous
year. However, the Company was severely affected by the drop in
commodity prices for tea and rubber by 24% and 41% respectively
within a period of one month affecting the performance during
the second half of the season.
Despite the drop in prices and adverse economic conditions
that prevailed during the second half of the year, Company was
able to record a net profit of Rs. 177 Mn at the end of the financial
year.
Rubber Industry and Company Performance
The Rubber industry was performing at its best during the first
half of the year both in terms of prices and production but the
industry experienced an unprecedented and unforeseen sharp
decline in prices from September 2008 onwards due to global
recession.
During the year under review, the Company’s rubber
production was 5,102 MT approximately 5% of the national
production. This is a decline of 6% over the previous year’s
performance, mainly due to production being curtailed during
second half of the year coupled with low prices.
Despite adverse economic conditions, the Company curtailed
all expenditure to a minimum thereby achieving an operating
profit of Rs. 429 Mn for rubber by the end of financial year.
4
Production of Centrifuged Latex remains the highest in
the Company covering 57% of the product mix. Second highest
being Latex Crepe amounted to 22% of the total production.
The percentage of Sole Crepe is approximately 7% which is
mostly marketed directly to end users for foreign currency to
the Company. Kegalle Plantations continued to be the preferred
supplier of Sole Crepe to the world famous shoe manufacturers
due to its premium and consistent quality.
Tea Industry and Company Performance
The Tea industry was also severely affected by the global
economic crisis which prevailed during the second half of the year.
Due to the drop in demand, bought leaf had to be curtailed which
resulted in the company’s made tea production drop by 10% in
comparison to the previous year. However, the Company was able
to curtail costs on overall operations and recorded an operating
profit of Rs. 43 Mn for tea.
On account of the investments made during the previous
years, facilitated leafy manufacture in the Udapussellawa Estates,
the Company was able to improve results for the year by changing
the product mix to get the best advantage of the premium paid for
leafy teas during the period of crisis.
Financial Results
The Company’s turnover for the year is Rs. 1,927 Mn with
a 11% drop compared to the previous year’s Rs. 2,163 Mn. This
is mainly due to the drastic drop in prices during the 2nd half
of the season coupled with curtailed production. However, the
Company has reduced the impact on operating profits by reducing
expenditure to Rs. 1,507 Mn which is a 3.6% reduction compared
to previous year.
The Company’s other income has increased by 62% mainly as
a result of improved liquidity which enabled investing its surplus
funds in government treasury bills and other financial instruments.
Interest income amounts to Rs. 38 Mn for the financial year which
reflects a 319% increase over the previous year.
The Company has made a Rs. 54 Mn provision as the
recoverability from its Subsidiary Company Hamefa Kegalle
(Pvt) Limited is doubtful since its operations have been ceased
from April 2009. Further a Rs. 50 Mn has been provided against
doubtful receivable from Richard Peiris Natural Foams Ltd.
Capital Expenditure
During the year the Company incurred Rs.165 Mn on capital
expenditure. The Company focused on long term benefits
incurring Rs. 89.9 Mn on field development mostly replanting
rubber and tea, and maintenance, out of which Rs. 67.6 Mn was

incurred on rubber. The balance amount of Rs. 22.3 Mn incurred
is on tea and other crops.
The total rubber extent planted during the year was 122
Ha. bringing the total extent under immature plantations to 659
Ha. The field development expenditure includes borrowing cost
capitalized at Rs. 4.1Mn.
Worker Welfare
The Company continued with its welfare activities in order
to improve the living standards of its workers. This includes
development of worker houses, re-roofing, development to ramps
and drains etc. with the assistance of the Plantations Development
Project funded by the Asian Development Bank. Further, health
camps were organized in several estates in order to improve the
health standards of workers. The Company continued to offer
scholarships on higher education for needy students of estate
workers.
Estate / Village Integration
During the year under review, the Company completed the first
phase of road development programme with financial assistance
from the Plantation Development Project of the Ministry of
Plantation Industries. Estate roads leading to worker houses and
villages were concreted under this program covering a distance
of 24 km in total. Further, the Company has submitted a proposal
to the Plantation Development Project in order to continue with
the second phase of the road development programme during the
next season.
Training and Development
The Company carried out several training programmes to its
staff on use of computer packages to carry out day to day work
in an efficient and effective manner. Also, it continued training
activities on productivity, quality manufacture and agricultural
practices, leadership, teamwork, career growth and development.
Computerization
The Company carried out several training programs on
computer usage. Kegalle Plantations introduced a new check roll
and general ledger package in some of its estates. This is an in-
Chairman’s Review Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
5
house developed new estate computerization package and was
introduced to estates during the year. Training and development of
estate staff was given priority and it is expected that the productivity
will be improved and a Management Information System would
be in place for effective and prompt decision making.
Future Prospects
We are optimistic that both rubber and tea prices which were
showing an increasing trend towards the year end, will continue
during the new financial year as well. Further, the Company will
be able to get the maximum advantage of the market prices with
effective management of the product mix.
Acknowledgements
I wish to announce the resignation of Mr. J M A Ratnayeke
from the Directorate with effect from 26th May 2008 and take
this opportunity to thank him for the valuable contributions he
made during his tenor of service. I also wish to announce the
appointment of one Non-executive Director to the Board, Dr. A
Nugawela on 26th May 2008. Such details are given in the Directors’
Profile and I am sure his contributions will be of immense value to
the future progress of the Company.
I wish to thank all employees at all levels for the contribution
towards the success of the Company, especially during this crisis
period. Also, I thank all stakeholders who contributed to our success
in many ways including the Brokers, Bankers, Trade Unions, The
Planters Association, Employers’ Federation of Ceylon, Plantation
Development Project and the Plantation Human Development
Trust, for their valuable contribution.
I thank with pleasure our valued shareholders for the trust
and confidence placed with our organization.
Finally, I wish to express my gratitude to my colleagues on the
Board for their support, expert advice and guidance.
Dr. Sena Yaddehige
Chairman
9th June 2009

Segmental Analysis
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
70
60
50
40
30
20
10
0
-
60
50
40
30
20
10
Segmental Assets
as a Percentage
29%
Cultivated Extent
as a Percentage
4%
14%
66
18
Rubber Tea Coconut Other
Tea Mix
as a Percentage
54
2009
High Grown Low Grown Medium Grown
2009
53%
26
6
Rubber
Tea
Other Crops
Unallocated
9
20
6
2009
2008
60
50
40
30
20
10
0
2009
2008
Turnover
as a Percentage
0% 20% 40% 60% 80% 100%
Rubber Mix
as a Percentage
Utilization of Resources
as a Percentage
7
8
6
7
7
14
13
Rubber Tea Coconut Other
21
Sole Crepe Latex Crepe Centrifuged Latex Other
33
2009
33
0% 20% 40% 60% 80% 100%
Land Leased Assets Tangible Assets
Plantations Stocks Receivables & Others
6
9
57
33
29
15

TEA
PRODUCTION Kg ‘000
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Elevation 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Uva 1,347 1,228 1,567 1,524 1,865 1,715 1,391 1,340
Medium 547 596 643 724 696 620 571 496
Low 701 741 822 761 858 789 834 653
NSA Rs. Kg
Elevation 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Uva 110.16 120.77 126.30 154.20 151.63 180.30 244.34 234.79
Medium 144.29 150.23 152.25 179.99 168.09 205.59 297.08 288.82
Low 153.51 152.73 155.49 184.93 184.73 200.97 302.74 288.27
COP Rs. Kg
Elevation 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Uva 117.97 140.32 133.78 163.59 151.10 170.35 225.35 236.13
Medium 111.05 118.97 121.12 146.89 153.35 175.26 224.94 245.74
Low 119.28 125.59 132.61 156.83 161.02 175.15 244.46 254.60
YIELD Kg/Ha
Elevation 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Uva 1,228 1,146 1,297 1,179 1,410 1,287 1,191 1,178
Medium 1,645 1,644 1,891 1,874 1,948 1,628 1,649 1,341
Low 1,613 1,581 1,387 1,326 1,372 1,199 1,327 1,133
REVENUE EXTENT-Ha
Elevation 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Uva 947.22 948.21 977.42 1000.04 992.04 975.87 972.37 974.36
Medium 191.69 191.69 191.69 189.69 191.69 190.69 188.69 188.69
Low 168.13 174.83 178.83 183.23 186.13 182.23 172.83 160.93
RUBBER
Segmental Analysis Contd....
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Prodction Kg ‘000 5,434 5,378 5,736 5,486 5,688 5,375 5,436 5,102
NSA Rs./Kg 58.73 87.43 113.22 137.74 163.65 225.00 245.66 237.25
COP Rs./Kg 54.44 63.83 76.65 88.56 102.01 126.75 143.01 152.71
Yield Kg/Ha 1,027 991 1,020 1,021 1,021 984 1,021 1,013
Revenue Extent-Ha 4,281.27 4,260.78 4,231.32 4,284.58 4,292.11 4,280.17 4,300.38 4,177.66
7

Profile of Directors
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Dr. Sena Yaddehige
Chairman
Mr. J H P Ratnayeke
Deputy Chairman
Mr. R L Kumararatne
Managing Director
Dr. Sena Yaddehige is a scientist/engineer and a swiss-based entrepreneur. He
developed the largest automotive sensor business in UK, based on technology
developed by himself with a large number of world-wide patents, with manufacturing
units in China and Brazil. He is also a high energy radiation specialist with various
patents on radiation processing.
He is the Founder, Chairman and Director of numerous Companies; his current
positions in Sri Lanka include Chairman, Managing Director and the Chief
Executive Officer of Richard Pieris and Company PLC, operating in manufacturing,
distribution, retail, rubber, tyres, plastics, furniture and forestry. He is also
the Chairman of Richard Pieris Exports PLC, Maskeliya Plantations PLC, and
Namunukula Plantations PLC and Director of National Development Bank PLC.
Dr. Yaddehige is presently a director of a Swiss Phamaceutical Company.
Mr. Paul Ratnayeke is a leading commercial lawyer and the Senior Partner and
Founder of the firm Paul Ratnayeke Associates. He graduated with honors from
the University of Ceylon (Colombo) and has also been awarded a LLM degree by
the University of London. He is an Attorney-at-Law of the Supreme Court of Sri
Lanka and a Solicitor of the Supreme Court of England and Wales. He is a Director
of the Board of Directors of several listed, public and private companies including
the Richard Pieris Group and Asia Capital Group.
Mr. Ravi Kumararatne has 39 years experience in the Tea Industry, including 28
years experience as a Tea Broker, Auctioneer, Tea Taster and Valuer. He was
the former Director of the Sri Lanka Tea Board, past Chairman of the Colombo
Brokers’ Association, past Committee Member of the Colombo Tea Traders
Association, past Committee Member of the Ceylon Chamber of Commerce, past
Chairman Forbes & Walker Tea Brokers (Pvt) Ltd, past Director of Forbes & Walker
Ltd, past Chairman of Forbes & Walker Commodity Brokers (Pvt) Ltd, and past
Chairman of Forbes Air Services (Pvt) Ltd. He is currently a Director of Siyaka (Pvt)
Ltd, Asia Siyaka Commodities (Pvt) Ltd, Siyaka Management (Pvt) Ltd, and Asia
Siyaka Warehousing (Pvt) Ltd.
He is also a Director of Maskeliya Plantations PLC, Numunukula Plantations PLC,
and other Companies in the Plantation Sector of Richard Pieris Group.
8

Mr. S S Poholiyadde
Director Operations
Mr. P D Samarasinghe
Mr. L N de S Wijeyeratne
Dr. R C W M R A Nugawela
Profile of Directors Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Mr Sunil Poholiyadde, has over 33 years experience in the Plantation Industry. He has
been a Senior Superintendent and joined the Corporate Management as a Deputy General
Manager of Kegalle Plantations PLC in 1997 and was promoted to the position of General
Manager in 2002. In 2005, he was promoted to the position he now holds as Director
Operations. He is also a Director of Richard Pieris Natural Foams Ltd, Vice Chairman
of the Colombo Rubber Traders’ Association, a member of the Board of Directors of the
Rubber Research Board, the Wages Board for the rubber growing and manufacturing
trade, the Replanting Advisory Committee of the Rubber Development Department and a
Trustee to the Plantation Trust Fund.
Mr. Pravir Samarasinghe is a Fellow Member of the Institute of Chartered Accountants
of Sri Lanka and the Chartered Institute of Management Accountants in UK and holds
an MBA. Joined the Board of Richard Pieris and Company PLC in 2000 and a Director
of several quoted and unquoted Companies. He was the past President of the Chartered
Institute of Management Accountants (Sri Lanka) and Council Member CIMA UK. He is
the Vice Chairman of the Industrial Association of Sri Lanka, and a Committee Member of
The Sri Lanka Institute of Directors, The Ceylon Chamber of Commerce and the National
Labour Advisory Council. He is the Chief Operating Officer of the Richard Pieris Group.
Mr Lalit de S Wijeyeratne is a Fellow of the Institute of Chartered Accountants of Sri Lanka.
He has over thirty one years of experience in finance, both locally and internationally.
He joined Richard Pieris & Company PLC in 1997 and resigned with effect from 30th
June 2008. He is a Director of Asian Alliance Insurance Company PLC and several other
Companies.
Dr. A. Nugawela joined the Rubber Research Institute in the capacity of an Assitant Botanist in 1980.
He was awarded a Colombo Plan Scholarship in 1981 to read for his Masters Degree and in 1982 he
successfully completed it in the field of Applied Plant Sciences at the University of London. He has
extensive experience over 29 years in the capacities of a Botanist, Head of Plant Science Department,
Deputy Director Research (Biology) and as a Director in Rubber Research Institute.
In 1985 he was offered a scholarship by the Food and Agricultural Organization of the United
Nations to obtain his professional qualifications. For his research work on Plant Physiology and
Bio productivity in Hevea brasiliensis (the natural rubber plant) he was awarded a PhD from the
University of Essex, UK in 1989.
His thrust areas of research and development were on nursery and planting practices, exploitation,
use of yield stimulants and rainguards. He has more than 120 publications in both local and
foreign research journals and has addressed in many local and international conferences on natural
rubber.
Dr. Nugawela was appointed to the Board of Kegalle Plantations PLC with effect from 26th May 2008.
9

Our Estates
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Estate Planting Cultivated Area ( ha ) Total Annual Production Factory Details No. of
District Rubber Tea Coconut Others Total Area Rubber Tea Crop Rated Workers
( ha ) Manfd. kg’000/pa
Allagolla Badulla 171.78 32.21 203.99 243.75 207 326
Ambadeniya Kegalle 427.53 2.34 23.60 12.31 465.78 583.25 428 376
Atale Kegalle 813.28 34.86 164.03 1,012.17 1,150.36 627 Rubber 950 841
Doteloya Kegalle 192.10 121.17 313.27 572.64 496 Tea 660 396
Eadella Kurunegala 348.44 339.39 12.00 699.83 801.79 378 348
Etana Kegalle 353.30 1.82 23.41 378.53 483.26 360 Rubber 228 311
Gampaha Badulla 215.84 58.49 274.33 348.99 313 Tea 800 430
Hathbawa Kegalle 270.90 5.00 275.90 477.79 236 219
Higgoda Kegalle 207.43 23.16 230.59 302.23 157 163
Kirklees Badulla 247.81 93.96 341.77 480.70 298 Tea 630 444
Luckyland Badulla 377.85 68.20 446.05 488.75 522 Tea 850 855
Madeniya Kegalle 431.62 14.19 445.81 551.92 319 340
Pallegama Kegalle 635.64 1.88 4.33 641.85 863.91 478 Rubber 800 595
Parambe Kegalle 492.53 33.02 12.81 538.36 795.41 401 24 Rubber 636 483
Udapola Kurunegala 365.74 37.36 2.73 405.83 577.78 342 200
Weniwella Kegalle 504.89 13.19 37.83 555.91 709.90 444 424
Yataderiya Kegalle 109.83 135.35 25.90 8.35 279.43 324.30 83 629 Tea 1,161 510
Udapola CLP Kurunegala 849 Rubber 5,000 53
4,961.13 1,376.09 478.00 694.18 7,509.40 9,756.73 5,102 2,490 7,314
Employment Strength Workers Clerical & Technical Executives Total
2008 7,664 487 48 8,199
2009 7,314 402 50 7,766
10

Key Data - Estates
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Name of the Postal Name of the Name of the
Estate Address Superintendent Asst. Superintendent
Allagolla Udapussellawa Mr. V C Hewage
Ambadeniya Aranayake Mr. W K P A F R Mr. A SWijethunge
Goonawardena
Atale Atale Mr. A C Bertus Mr. S M Cooray
Mr. D L S M Peiris
Doteloya Dolosbage Mr. Chandana Priyashantha Mr. Buddhika Kodagoda
Eadella Polgahawela Mr. G L H D Amarathunge Mr. D S R Jayasinghe
Mr. B P Waidyatileke
Etana Warakapola Mr. S D Munasinghe
Gampaha Udapussellawa Mr. D V M De Run Mr. B P D Mahesh
Hathbawe Rambukkana Mr. M W Liyanasekara
Higgoda Undugoda Mr. S S Gunasekera
Kirklees Udapussellawa Mr. S R Aluwihare Mr. D P K Wijewardane
Luckyland Udapussellawa Mr. I S Doranegama Mr. Vinoda de Silva
Mr. D Gunawardane
Madeniya Warakapola Mr. U D Liyanage
Pallegama Niyadurupola Mr. B M J A Moonamale Mr. H S B Aluvihare
Mr. J R Amunupura
Parambe Undugoda Mr. S A A P Jayathilake Mr. N A M Navaratne
Udapola Polgahawela Mr. N B Ranathunge Mr. MR Waidyakularatne
Udapola CLP Polgahawela Mr. N B Ranathunge Mr. C N Wickramasinghe
(Quality Controller)
Weniwella Alawwa Mr. A C S Munaweera Mr. D A Kurukulasooriya
Yataderiya Undugoda Mr. U K Wanniarachchi Mr. N A Liyanagedara
Head Office Nawinna Middle Management
Mr. M J F Deen
Mr. K Varadarajah
Mr. E S D D Perera
Mr. U Jayasinghe
Mr. T I Kodithuwakku
Mrs. A S Ponnamperuma
Mr. E Ranjan
Mrs. T Samuel
11

Corporate Social Responsibility
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
We believe that Corporate Social Responsibility is a concept
that changes and evolves continuously. We also have come
to believe that within our development programme our first
obligation is to focus social responsibility policy and practice on
the people that we deal directly – mainly employees, shareholders,
customers and communities in which we operate. This does not
mean that we have set boundaries in our areas of operation. It is
simply a matter of establishing and adhering to priorities.
Estate Skill Development - Employees
Training of Tappers and Pluckers is being carried out to improve
the production and quality. Social Welfare programmes are held
on Drug awareness, Child abuse and Cash Management on all
estates.
Community Development
Several extents of land were released from our estates to Water
Supply and Drainage Board for water supply schemes to provide
water, for temples, cemeteries, villagers etc.
Clearing of surroundings and renovation of wards are undertaken
annually at the Government Hospitals.
The Company provided in-house training on Information
Technology to undergraduate students of University of Colombo.
Health and Welfare
The assistance we give the workers/staff towards medical facilities,
welfare activities, cultural and religious functions, sports etc.
include providing necessary goods/materials and technical inputs.
Many programmes are being conducted on worker housing,
medical care, welfare and crèche activities. The Plantations Human
Development Trust together with the staff attached to the Health
and Welfare Division of our estates conduct these programmes
with a view to uplift health and sanitation levels in our estates.
Beneficiaries under these programmes are the workers and staff of
the estates, their dependents and the villagers.
Health camps are organised on estates in collaboration with
the PHI, Health Department, MOH officials and various other
organisations paying much attention to health of the workers,
specially mothers and children. The Health Development Staff in
the estates with the assistance of Plantation Human Development
Trust make concerted effort in conducting these camps to be of
use to all concerned.
12
Some of these Health camps conducted are on the following
subjects:-
Awareness Programmes on HIV, AIDS
Diabetic
Oral Cancer
Dental Clinic
Blood Donations
Eye Clinics providing spectacles
Anti Natal/Poly clinics to advise pregnant mothers
During the year two medical camps were conducted in Yataderiya
and Parambe estates with the assistance of Plantations Human
Development Trust.
In collaboration with the Plantation Human Development Trust
the estates undertake re-roofing of lines, supply of equipment to
maternity wards, upgrading staff quarters and constructions of
new staff quarters.
Child Development and Welfare
With the assistance of Plantation Human Development Trust,
Crèches are upgraded in all the estates to provide better shelter
for workers’ children. In some crèches children are provided with
mid day meals.
The staff welfare societies of the estates conduct various
programmes for the children of the resident workers and in some
instances children of the villagers too participate.
Some estates organized programmes on Children’s Day and
distributed exercise books, stationery etc.
To educate the workers and employees on child rights and the
parents’ responsibility, estates conduct programmes with the
assistance of the Divisional Secretary.
Community Service
The staff and workers of the estates participate in ‘shramadana’
campaigns-cleaning and repairing village roads, cleaning adjoining
town areas, cleaning of wards of the government hospitals,
donating funds, goods etc.
With the funds provided by the Asian Development Bank and the
Plantation Development Project, estates completed first phase of
the tarring and concreting of estates roads leading to villages and
worker houses.

With the assistance of Gramasewaka’s, Mobile Identity Card
Services are conducted to help the estate workers to obtain their
National Identity Cards.
Employee Safety
All the factories in the estates and other work places are equipped
with necessary implements to maintain the safety standards
required. Educational programmes are conducted to enlighten
the employees of the need to take precautionary measures and to
become aware of the various issues relating to work place safety.
Forestry Management
Forestry Management is an ongoing programme that would help
the estates in attaining self sufficiency in fuel wood and also provide
the country with the forest cover.
Environment protection
In the estates which we have rubber factories, a well managed
effluent treatment plant is constructed in order to mitigate
pollution from rubber effluent.
Employment Opportunities
Employment opportunities are offered to staff / workers’ children.
Corporate Social Responsibilities Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
13
Sports Activities
Inter estates Volley Ball and Cricket tournaments are conducted
every year with the assistance of the Head office.
Co-operative movements
All the estates have the Estate Workers Co-operative Societies
functioning. With the advice of the Superintendent most of the
workers enroll themselves in this society. Through this society
various types of financial assistance including short term loans are
given with minimum security requirement as distress / housing
loan etc.
Goods and equipment are given on easy payment scheme through
this society.
In some estates Computer Training Centres are set up to assist the
children of the workers to gain computer knowledge.
Assistance for Higher Studies
The Commpany assist children of the employees who pursue higher
education in the national universities. The assistance is worth Rs.
1,500/- per month and it is payable during the period of study.
So far several children have been benefited by this scheme and
among them few have completed their studies and are gainfully
employed.

Financial Review
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Results
The Turnover of the Company was Rs 1.93 Bn, a decrease of 11%
compared to the Turnover of Rs 2.16 Bn recorded in the previous
year. Turnover of both rubber and tea decreased by 9% & 15%
compared to the previous season respectively. The Gross Profit
(GP) Margin for rubber decreased from 36% to 30% whilst the GP
margin for tea has decreased drastically from 9% to 1% compared
to the previous year.
Financial Position
Non current assets and Current assets increased by Rs 98 Mn and
Rs 75 Mn respectively. The company spent Rs 166 Mn on capital
expenditure. As at the balance sheet date the company’s long term
and short term borrowings increased by 17% to Rs 347 Mn from Rs
298 Mn from the previous year. This is mainly due to a new loan
of Rs 99 Mn obtained for the purpose of field development and
factory consolidation.
4.80
4.20
3.60
3.00
2.40
1.80
1.20
0.60
-
60
50
40
30
20
10
-
Estate Crop
In million kilogramms
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Capital Expenditure
In Rupees Million
Field Dv.
3000
2500
2000
1500
1000
500
0
-500
Factory
Mod.
Rubber Tea
Equipment Social Other
2008 2009
Total Assets & Borrowings
In Rupees Million
2006 2007 2008 2009
Total Assets
Net Borrowings
14
Cash flows
The cash generated from operations amounted to Rs 397 Mn as
against a Rs 587 Mn in the previous year. Interest, Dividend and
Income tax payments during the year amounted to Rs 38 Mn, Rs
53 Mn and Rs 5.8 Mn respectively. Payments relating to the lease
rental amounted to Rs 20.8 Mn. The resultant surplus of Rs 230
Mn was used to value overdrafts, and to gain from short term
investments.
Earnings Per Share
Basic Earnings per share dropped to Rs 7.10 from Rs 17.10 and was
due to decrease in profits. Return on Capital Employed was 10% as
against 29% in the previous year.
2500
2000
1500
1000
500
40%
30%
20%
10%
0%
0
Inflow 2008
Inflow 2009
Outflow 2008
Outflow 2009
Turnover & Cost of Sales
in Rupees million
2005 2006 2007 2008 2009
Gross Profit Margin
In Percentage
Turnover COS
2006 2007
2008 2009
Cash Flow
In Rupees Million
Rubber Tea
0 200 400 600 800
Inflow Outflow
Inflow from Operations
Proceeds from Loan
Other Receipts
Capital Expenditure & Investments
Loan Repayment/ Rentals /Finance Cost
Other

Rubber
Production
The year under review commenced with optimism and confidence
to register further gains in all performance indicators over previous
years. Came the second half of the season, all hopes were dashed
due to the slump in rubber prices, following the global recession. As
a result the Company was compelled to restrict production during
the cropping period due to demand being limited in the market
for natural rubber, consequent to end product manufacturers
curtailing their operations. Nevertheless Kegalle Plantations PLC
continued to maintain its position as the largest natural rubber
producer with a production of 5,102 MT which is a contribution
of 5% to the National production. The YPH recorded during the
season was 1,,013 Kg.
Small Holder Latex
The ripple effect of the slow down also saw the Small Holders
suspending tapping due to the drop in the prices of Field Latex.
However the Company was able to collect 869,625 Kg from the
Small Holders by paying reasonable prices.
450
400
350
300
250
200
150
400
350
300
250
200
150
100
50
-
Direct Exports
in metric tons
331
408
364
313
2005 2006 2007 2008 2009
Rubber Exports
Colombo Auction Rubber Price
in Rupees per kilo
Review of Operations
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
351
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2009 2008
15
Cost of Production
In spite of restricting the outgoings, the Cost of Production
increased by 12% compared to last season, mainly due to the
increase in the wage rates. Further, the average Bought Latex rate
paid to the Small Holders too increased by 9% mainly because of
the higher prices paid during the first half of the year.
Product Mix
The product mix for the period under review is given below :
Market Outlook
200
150
100
50
0
Capital Expenditure
in Rupees Million
1999
116
2000
100
2001
123
2002
Centrifuged Latex 57%
Latex Crepe 22%
Sole Crepe 7%
Skim & Scrap 14%
The higher percentage of rubber manufactured continued to be
Centrifuged Latex with a 57% share and it was sold through the
Brokers and to our long standing customer Messrs Richard Peiris
Natural Foams Ltd. We also continued to be the preferred supplier
of Sole Crepe to the world famous manufacturers of Clarks Shoes
Company and exported the total production.
300
250
200
150
100
50
0
Colombo Auction Average RSS 1 Price
in Rupees per kilo
102.71
127.2
74 74
2003
141.17
2004
61
202.34
2005
70
2006
107
2007
233.81
2003 2004 2005 2006 2007 2008
Rubber Exports
94
2008
119
267.89
2009
166

Review of Operations Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
NSA
The Company achieved an overall NSA of Rs. 237.25 for the year
under review. In spite of the drastic slump in the rubber market
the Company was able to restrict the drop in prices to only 3%
over last season. This was possible due to timely intervention in
changing product/grade mix to suit the Market.
Investments
Replanting of rubber was undertaken in an extent of 122 Ha
during the year under review. Thus the Company has replanted an
extent of 659 Ha; since the Company resumed Replanting in the
year 2004. Subsidy due for Replanting from the Rubber Cess Fund
has been claimed appropriately.
Worker Welfare
The Company continued to extend financial assistance of Rs. 1500/-
per month to each student who qualified for University Education
and Six Children of Workers’ from Ambadeniya, Parambe and
Pallegama Estates benefited from this scheme.
Estate/Village Integration
Roads leading to Villages and worker houses, in an Extent of 5
kms on three estates were concreted with the grant of Rs 6.25 Mn
allocated by the Plantation Development Project of the Ministry of
Plantation Industries.
Training & Development
The Company continued the training of Workers, Staff and
Executives on productivity, quality manufacture and agricultural
practices, leadership, teamwork, career growth and development.
The following programmes were undertaken during the
period under review, with facilities extended by the Plantation
Development Project.
Colombo Auction Tea Price
in Rupees per kilo
400
350
300
250
200
150
100
50
-
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2009
Rubber Exports
2008
16
Workers Tapping & other agricultural practices, Plucking &
Other agricultural practices, Rubber Manufacture
& Factory practices, Low Grown tea manufacture,
Inter Cropping & Cultivation of export agriculture
Institutional Development (Leadership Team &
Attitude) Fire Protection, Bud Grafting, Personal
Hygiene, Praguna “Pragathi” programme on
productivity, effectiveness, efficiency, and team
dynamics for Pluckers, leaf handlers and Trade Union
Leaders.
Staff Leadership, Teamwork & Tapping, Managing
Occupational Stress, Skill Development, Energy
Saving Methods, Fire Protection, Praguna “Pragathi”
programme on productivity, effectiveness, efficiency,
and team dynamics.
Executives Personal Development, Career Growth, Leadership
Development Competencies, and Forestry
Management for SGS certification.
Review of Operations - Tea
Production
A production of 2.5 Mn kg of made tea has been recorded for the
season 2008/09 compared to 2.8 Mn kg last season. The deficit
is mainly due to the reduction of Bought Leaf in Udapussellawa
Estates during the months of October/November/December 2008
and January 2009 owing to the drop in tea prices at the auctions
and non-movement of teas. Work on the estates too had to be
curtailed due to poor trading conditions.
Anticipated crop for February and March 2009 could not be
harvested due to very dry weather conditions that prevailed.
Agricultural conditions of Estates were maintained whilst cost
effective measures were adopted during the crisis period(October
2008 to January 2009) when sales averages were low and teas were
not moving at auctions.
COP
Overall increase in cost against last season is 5% which is mainly
due to low bought leaf intakes,which had to be controlled due to
the poor market conditions.
Effective controls over all outgoings were adopted and managed to
keep the COP at satisfactory level.
NSA
Tea factories have been developed and having the facility to cater
for leafy market as well as small leaf manufacture. Hence, advantage
could be taken depending on the market conditions.
Gampaha Factory obtained 73 top prices
Doteloya 22 top prices and
Yataderiya 6 top prices,
during the season under review.

Rupees Mn
Statement of Value Added
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
2009 2008 2007 2006
Turnover 1,928 2,163 1,819 1,514
Other Income 61 38 34 18
1,989 2,201 1,853 1,532
Cost of Meterials and Services (996) (926) (739) (740)
Value Added 993 1,275 1,114 792
DISTRIBUTION OF VALUE ADDED
To Employees as Remuneration 670 67% 725 57% 656 49% 493 62%
To Government as Taxes and Lease Rent 31 3% 28 2% 34 3% 27 3%
To Lenders of Capital as Interest 42 4% 28 2% 52 4% 29 4%
To Shareholders as Dividend 50 5% 150 12% 62 5% 38 5%
Retained in the Business as;
Provision for Depreciation 73 7% 66 5% 61 5% 52 7%
Profit Retained 127 13% 278 22% 249 34% 153 19%
993 100% 1,275 100% 1,114 100% 792 100%
Value Added Per Employee - Rs. 127,865 155,507 138,334 94,432
Turnover Per Employee - Rs. 248,231 263,816 225,881 180,467
5%
4%
7%
3%
13%
Distribution of Value Added
2009
68%
Remuneration
Government
Lenders
Dividend
Depreciation
Retained
17
5%
12%
22%
2%
2%
Distribution of Value Added
2008
57%
Remuneration
Government
Lenders
Dividend
Depreciation
Retained

Corporate Governance
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Board of Directors act as the representatives of Shareholders.
Whilst being ethical and accountable to the society, Board of
Directors ensure that the corporate management act in the best
interest of the Shareholders. The main Corporate Governance
practices in place throughout the year are outlined below:
Role of Board of Directors
Corporate Governance is the responsibility of the Board of
Directors. Key functions of the Board include:
l Setting goals for the management.
l Monitoring performance against set goals.
l Assessing the adequacy and effectiveness of internal control
and management information.
l Identifying principal business risks of the Company and
ensuring such risks are effectively managed.
The Board of Directors reserves for itself certain decisions such
as the establishment of Company policies, approval of capital
expenditure, annual corporate budgets, etc., and delegates other
decisions to the Management. All the Directors are recognized
business personalities who possess wealth of knowledge and
experience. The company is satisfied with the composition of
its Board so as to provide combination of skills, experience and
different perspectives.
Board Meetings
At present the Board meets once in two months. At least 7 days
prior to the meeting, all Directors are given a comprehensive
files of Board Papers which includes Profit and Loss Statements,
Crop and Yield Statement and a Progress Report amongst other
information.
Name Designation Number of Meetings Category
Attended
Dr. Sena Yaddehige Chairman 1 Executive Director
Mr. J H P Ratnayeke Deputy Chairman 6 Executive Director
Mr. S S Poholiyadde Director Operations 7 Executive Director
Mr. L N De S Wijeyeratne Director 6 Non Executive / Independent Director
Mr. P D Samarasinghe Director 6 Executive Director
Mr. R L Kumararatne Director 5 Executive Director
Dr. R C W M R A Nugawela Director 6 Non Executive / Independent Director
COMPLIANCE TABLE : SECTION 6 OF COLOMBO STOCK EXCHANGE RULES
Section Requirement Status of Compliance
6.1-6.4 Non Executive and Independent Directors The Board of Directors comprises 7 Directors. This includes two Non-
Executive / Independent Directors Mr. L N de S Wijeyeratne and Dr. R C
W M R A Nugawela and is in compliance with the regulations of Corporate
Governance Rules. L N de S Wijeyeratne does not meet with all criteria to
be an independent director in the fact that he has been in employment of
the ultimate holding company, during the period of two years immediately
preceding him acting as an independent director from 30th June 2008.
However the Board notes that Mr. L N de S Wijeyeratne has ceased to be an
employee and a director of the Richard Peiris & Co. PLC since 30th June 2008.
Accordingly his present role as an independent director of the company is not
referable to the fact of him being employed in the ultimate holding company
Richard Peiris & Company PLC. Therefore the Board of Directors is satisfied
that he could be rightly construed as an Independent Director. There are five
Excutive Non Independent Directors in the Company.
The Board has assessed the Independence of the Non-Executive Directors. A
brief resume of the Directors is given on pages 8 to 9.
6.5 Remuneration Committee The Remuneration Committee of the parent Company, Richard Pieris &
Company PLC acts as the Remuneration Committee for the Company. The
composition of this Committee complies with these requirements and the
names of the members of the Remuneration Committee are set out in the
Report of the Remuneration Committee on page 21.
6.6 Audit Committee The Audit Committee of the parent Company Richard Pieris and Company
PLC acts as the Audit Committee for the Company. The composition of this
Committee complies with these requirements and the names of the members
of the Audit Committee are set out in the Report of the Audit Committee on
page 20.
18

Strategic Direction and Corporate Structure
The Company strongly pursues the strategic direction identified
and laid down in its Corporate Plan taking into account the current
business and political environment.
Management and Sector Meetings
The Management Committee chaired by the Managing Director
meets once a month to review in detail the operations of the
Company. All capital expenditure / project proposals etc., are
reviewed by this Committee at these meetings before making
recommendations to the Board. The Company also has Rolling
Business and Strategic Plans, which takes into account the
Strategic Direction of the Company, goals, targets, and profitability.
Professional advice and training as mentioned earlier being
managed by the Parent Company, a conglomerate which has
diversified areas of business interest and have in their employment,
professionals of the high caliber. Basic training such as financial
management, corporate planning etc. are provided as required.
Managing Agent
RPC Management Services (Pvt) Ltd. has managed the Company
since incorporation. However the ownership was transferred to
RPC Plantations Management Services (Pvt) Ltd with effect from
3rd October 2008. A new management agreement was signed
in this connection in October 2008. The formula to compute
Management Fee remains same as previous years.
Corporate Governance Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
19
Secretary to the Board
Richard Pieris Group Services (Pvt) Ltd., who are secretaries to the
Company are qualified to act as secretaries as per the provisions of
the Companies Act. No. 07 of 2007. The Board of Directors through
the Group Legal and Finance Divisions make every endeavour to
ensure that the business complies with all laws and regulations.
Additionally, checks and controls are in place to ensure that
the Policies of the Board are complied with. Maximum possible
information is provided to shareholders and full disclosure is made
subject only to any sensitive information, which could directly
impact on the business of the Company.
Internal Audit
The Internal Audit Unit of the Parent Company conducts regular
Audits on the Plantations and report to the Chairman of the
Company. These reports are reviewed by the Audit committee of
the Parent Company and they advice the Company of the actions to
be taken on the findings to regularize any issues raised.
Going Concern
The Directors believe, after reviewing the financial position and cash
flow of the Company, that the Company has adequate resources
accompanied by financial facilities to continue in operation for
the foreseeable future. For this reason they continue to adopt the
going concern basis in the preparation of financial statements.

Report of the Audit Committee
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
The purpose of the Audit Committee is to:
1. Assist the Board of Directors in fulfilling its overall
responsibilities for the financial reporting process
2. Review the system of internal control and risk
management
3. Monitor the effectiveness of the internal audit
function
4. Review the Company’s process for monitoring
compliance with laws and regulations.
5. Review the independence and performance of the
external auditors
6. To make recommendations to the board on the
appointment of external auditors and recommend
their remuneration and terms of engagement.
The Audit Committee of the Parent Company acted as the Audit
Committee of Kegalle Plantations PLC. The Audit Committee
consisted of two independent and Non Executive Directors,
namely Prof. Lakshman R. Watawala and Prof. Susantha Pathirana.
The Chairman of the Committee is a Senior Chartered Accountant.
The Company Secretary functions as Secretary to the Audit
Committee.
The principal activities of the Committee during the year are
detailed below.
Meetings
The Audit Committee held 10 meetings during the year under
review.
The Group Chief Financial Officer, Group Internal Audit Manager, Chief
Financial Officer of the Plantation Sector, Chief Executive Officer and
functional heads of the Strategic Business Units (SBU) were invited if
deemed necessary for Audit Committee meetings.
Meetings were held with the external auditors regarding the scope
and the conduct of the annual audits.
Internal Audit and Risk Management
The Internal Audit Programme was reviewed by the Committee to
ensure that it covered the major business units of the Group.
The Chief Internal Auditor was invited to be present at all Audit
Committee deliberations. He presented a summary of the salient
findings of all internal audits carried out by his department for
the period. The responses from the Functional Heads of the SBUs
to the internal audit findings were reviewed and where necessary
corrective action was recommended and implementation
monitored.
20
The Committee reviewed the IT Risk Management addressing issues
relating to hardware, software and skilled staff and recommended
areas which needed to be strengthened.
Internal Controls
During its meetings the Committee reviewed the effectiveness
of the internal control systems and the Group’s approach to its
exposure to the business and financial risks. Processes are in place
to safeguard the assets of the organization and to ensure that the
financial reporting system can be relied upon in the preparation
and presentation of Financial Statements. A comprehensive
Management Report and Accounts are produced at month
end highlighting all key performance criteria pertaining to the
Company’s SBUs which is reviewed by the Senior Management on
a monthly basis.
SBU Boards review performance on a quarterly basis.
Financial Statements
The Committee reviewed the Company’s Quarterly Financial
Statements, the Annual Report and Accounts for reliability,
consistency and compliance with the Sri Lanka Accounting
Standards and other statutory requirements, including the
Companies Act , No 7 of 2007 prior to issuance.
External Auditors
The Audit Committee has reviewed the other services provided by
the External Auditors to the group to ensure their independence
as Auditors has not been compromised.
The Committee reviewed the Management Letters issued by the
External Auditors and the Management response thereto. It met
with the Auditors and discussed issues arising from the Audit.
The Audit Committee has recommended to the Board of Directors
that Messrs Ernst & Young be re-appointed as Auditors for the
financial year ending 31st March, 2010 subject to the approval of
the shareholders at the next Annual General Meeting.
Conclusion
The Audit Committee is satisfied that the control environment
prevailing in the organisation provides reasonable, but not
absolute assurance that the financial position of the Company is
satisfactory and that systems are in place to minimise the impact
of identifiable risks.
Prof. Lakshman R Watawala
Chairman
9th June 2009

The Remuneration Committee of the Parent Company acted
as the Remuneration Committee of Kegalle Plantations PLC.
The Remuneration Committee consists of two Independent, Non-
Executive Directors, Prof. Lakshman R Watawala, Prof. Susantha
Pathirana and Mr. James Mather, former partner of Messrs. Ernst &
Young. The Committee is chaired by Prof. Lakshman R Watawala.
The Committee met on several occassions during the financial
year.
The Remuneration Committee has reviewed and recommended
the following to the Board of Directors:
1. Policy on remuneration of the Executive Staff
2. Specific remuneration package for the Executive Directors
3. Revision of fees for the non Executive Directors
Report of the Remuneration Committee
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
21
In a highly competitive environment attracting and retaining high
caliber executives is a key challenge faced by the Group. In this
context the Committee took into account, competition, market
information and performance evaluated methodology in declaring
the overall remuneration policy.
Prof. Lakshman R Watawala
Chairman
9th June 2009

Risk Management
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Kegalle Plantations PLC is exposed to a multitude of risks
associated with the cultivation and processing of Tea and
Rubber and the economic environment in which it operates.
The Board of Directors therefore places special emphasis on the
management of business risks and together with the Management
Committee, ensures that a sound system of controls including
financial, operational and compliance are in place, to safeguard
shareholder investment and assets and reviews regularly the
effectiveness of such controls.
Risk Exposure Company Objectives Risk Minimisation Strategies
Financial Risk Management
1. Liquidity & Cash Management l Capitalize on opportunities to l Funding of long term assets through
raise funds at lowest possible cost. Equity and Long Term Loans.
l Maximum utilization of the
concessionary funding available
to Plantation Companies.
l Ensuring proper management of
working capital.
l To ensure a strong liquidity l Ensure availability and effective
position. utilization of short term facilities
where necessary.
2. Interest Rate Risk l To minimise adverse effects l Structuring the loan portfolio to
of interest rate volatility and combine foreign currency and local
currency denominated borrowings.
l To ensure cost of borrowing l Effective utilization of hedging
is at the optimum level techniques such as interest rate swaps,
with the assistance of Group Treasury.
l Maximum utilization of the
concessionary funding available to
Plantation Companies.
3. Currency Risk l To minimise risk associated l Export proceeds exceeding the import
with the fluctuation in foreign payments and foreign currency debt
currency rates in relation to payments act as a natural hedge
export proceeds, import
payments and foreign currency
debt transactions.
l Ensuring effective utilization by
coordinating with treasury operations
through various hedging techniques
such as forward bookings, forward
sales, swaps etc.
22

Business Risk Management
Risk Management Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
1. Credit Risk l To minimise risks associated l Obtaining insurance covers for
with debtor defaults. export debtors
l Work towards obtaining collaterals
from major local customers with
high outstanding.
l Follow stringent assessment
procedures to ensure credit
worthiness of the customers prior
to the granting of credit.
2. Asset Risk l To minimise risks from fire, l Obtaining comprehensive insurance
theft and machinery & covers for all tangible assets.
equipment breakdown.
l Adoption of stringent procedures with
regard to the moving of assets from one
location to another.
l Carrying out mandatory preventive
maintenance programs.
l Carrying out frequent employee training
programs in areas such as fire prevention.
3. Internal Controls l To maintain a sound system l Carrying out of system audits and other
of internal control to safeguard control mechanisms such as inventory
shareholders wealth and counts and cash counts throughout the
Company’s assets. estates by the central Internal Audit
Department of the main Group.
4. Reputation Risk l To prevent the causes that l Having in place a budgetary process
damages our reputation. & a budgetary control mechanism
on a monthly basis to ensure that the
Company’s performance is
continuously in line with its targets.
23
l Adopting stringent quality assurance
policies with regard to raw and packing
materials bought out from third parties.
l Ensure quality in manufacturing process
and compliance with the standards. Work
towards obtaining at least HACCP
standard in every factory.
l Ensuring effective communication with
various stakeholders such as employees,
bankers, regulators, customers, suppliers
and the shareholders.

Risk Management Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
5. Human Capital & Labour Risk l To ensure a smooth flow l Maintaining healthy relationships with
of operations without any trade unions through regular dialogues.
undue disruptions.
l Entering in to collective agreements
with trade unions.
l Ensure compliance with all regulatory
requirements with regard to the benefits
applicable to workers at estates.
l To protect ourself as a humane employer
being successful in motivating
developing, retaining and attracting the
best of human capital.
l Improving employee benefits by way of
financial incentives and welfare activities.
l Arrange in-house and external training in
order to develop the human resources.
6. Technological Risk l To keep pace with the current l The continuous investments in new
technological developments and machineries and experiments on new
safeguard against obsolescence. methods.
l Mechanization of estate functions
up to the highest possible extent.
l Investing in Research & Development
activities whenever necessary.
l Implementation of the new computer
system in head office and the estates.
l Investing in hardware resources.
7. Procurement Risk l To minimise risk associated l Continuous replanting activities
with price and availability of both tea and rubber.
l Establishing relationships with many
suppliers for latex and bought leaf in
order to reduce over- dependency on a
single supplier.
l Entering into forward contracts for
purchases of certain raw material items.
8. Inventory l To reduce stock obsolescence l Adopting a monthly declaration policy.
and manage stock holding costs.
24

Risk Management Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
l Reducing the risk associated l Identifying slow moving stocks and
with theft and shrinkage. effectively laying out a channel for these
to be sold off.
9. Risk of Competition l To maximise our market share l Ensuring high standards of quality in
and maintain leadership in the the eyes of the customer.
respective industries.
l Increasing productivity and efficiency in
order to ensure an adequate margin
despite increasing wage, energy and
transportation costs.
l Carrying out Research & Development
activities whenever necessary in order to
identify key areas to be focused.
10. Capital Investments Risk l To minimise risk of not meeting l Adopting a stringent approval procedure
profit expectations for Capital expenditure based on the
level of investment and the expected
pay back.
12. Information Systems Risk l To minimise risk associated l Maintaining of spare servers mirroring
with security, Hardware of hard disks with critical data.
communication and Software.
l Data back-ups stored in off site locations.
l Vendor agreements for support service
and maintenance.
l Regular updating of Virus scanners,
Firewalls etc.
l Compliance with statutory requirements
for environmental preservations.
13. Environmental, Political l To minimise the negative l Ensure compliance with all regulatory
& Regulatory Risk impact from changes in the requirements.
external environment which
are beyond our control.
25

Environmental Guidelines
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Forestry Management
As a responsible Corporate Citizen, we are fully mindful of the need
to protect the environment and as a Company that is engaged in
Plantation Agriculture, we are deeply involved in its conservation.
It should be noted that the rubber plantation we have, 4,700 ha .
in extent, are in fact a forest cover.
A five year forest management plan is currently being formulated
for the sustainable management of forest plantation blocks and
harvestable timber extents on estates. In our forestry programme ,
we have issued guidelines to our Superintendents regarding land
selection, species selection and cultivation practices, bearing in
mind the need to preserve the environment. We have prohibited
planting of dendrothermal forestry on very steep or inaccessible
land. Rivers and stream banks are in conservation forestry in
perpetuity. The same principle applies to sources of water for
industrial and domestic purposes. We are conscious of the
importance of preventing accidental or deliberate forest, first and
extreme vigilance is being exercised.
Harvesting of Timber
The Inter-Ministerial Committee under the patronage of the
Minister of Plantation Industry together with the Conservator of
Forests regulates all forms of tree harvesting on estates. Clear
felling of trees in extents exceeding 2 Ha felling of wind belts or
any form of felling of trees in catchment areas or in lands with high
gradients are totally avoided. It is also mandatory on the part of
26
the Company to replant the harvested extents almost immediately
during the succeeding monsoon in addition to the establishment
of conservation forest extents in vulnerable areas.
All operations including felling, clearing, extraction & transportation
of timber is undertaken in conformity to the environmental
standards stipulated under the National Environmental Act with all
precautionary measures planned out to minimize soil erosion and
runoff fluctuation of the ground water table.
Soil Conservation
Dreadful conditions of land prevented by appropriate soil
conservation methods, such as proliferation of leguminous cover
crops, terracing including “live terraces” and draining on an annual
basis.
Treatment of Effluent
We have commissioned Effluent Treatment Plants in our rubber
factories to treat the toxic wastes before it leaves our estates
boundaries. The operating cost of these treatment plants amounts
to an average of Rs 1/- per kg.
Energ y Efficiency
It is widely known that power generation leads to environmental
pollution. Hence our commitment for energy efficient machinery
reduces this environmental threat.

Financial Calender
2 0 0 8 / 2 0 0 9
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Interim Quarterly Reports - 2008/09
1st Quarter 04th August 2008
2nd Quarter 21st November 2008
3rd Quarter 18th February 2009
Meetings
14th Annual General Meeting 29th June 2007
15th Annual General Meeting 23rd July 2008
16th Annual General Meeting 28th July 2009
27

Annual Report of the Board of Directors
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
The Directors of Kegalle Plantations PLC have pleasure in
presenting their report together with the Audited Financial
Statements of the Company for the year ended 31st March 2009
and the Auditor’s Report thereon.
Review of Company Performance
The review of the Company’s performance during the year and the
important events that occurred during the period under review are
contained in the Chairman’s Review and Review of Operations.
Principal Activities and Business Review
The principal activity of the Company which is the cultivation and
processing of Tea and Rubber remained unchanged. The Company
also cultivates Coconut, Cardamom, and other minor crops on a
smaller scale. For this purpose the Company has entered into a 53
year lease with the Government from June 1992 and the number of
estates stand at 17 and total extent cultivated is 6,838 Ha.
Turnover
The Revenue of the Company was Rs 1,927,761,683 (07/08-Rs
2,163,030,446). Composition of the Revenue is given in Note 21 to
the Accounts. You will note that the main contributor towards the
turnover is Rubber which consists of 63% of the total Revenue.
Profit /(Loss) from Operations after deducting all
Profits Reserves and Dividends
The Company made a Net Profit before Tax of Rs. 191,158,064
against a Profit of Rs. 438,376,042 made in the previous year. The
Company paid Economic Service Charge and provided for Income
Taxes amounting to Rs. 13,746,909 (07/08 - Rs. 10,778,759) and
Profit after tax amounted to Rs. 177,411,155.
The total Reserves of the Company as at 31st March 2009,
amounted to Rs. 1,097,281,208 (07/08 - 969,870,053). Details of
the movement of Reserves are shown in the Statement of Changes
in Equity on page 37.
Dividends
We are pleased to recommend a final dividend of Rs. 1/- per share
(07/08 – Rs. 2/-) for the year under review payable after approval
at the AGM on the 28th July 2009. The dividend will be subject to
a 10% tax deduction.
Property, Plant and Equipment
The total capital expenditure incurred on the acquisition of fixed
assets during the year amounted to Rs. 165,940,131 (07/08 - Rs.
119,209,569), out of which expenditure on Replanting and Field
Development amounts to Rs. 89,992,790 (07/08 - Rs. 61,159,302).
Further information relating to the movement of Fixed Assets is
given in Notes 5 to 6 of the Accounts.
2009 2008
Rs.’000 Rs.’000
Expenses, depreciation and all known liabilities 191,158 440,778
Associate Company Profit/(Loss) Share - (2,402)
Profit before Tax 191,158 438,376
Taxation (13,747) (10,779)
Profit after Tax. This will be added to the
Brought forward Profit/(Loss) 177,411 427,597
Making Profit available for appropriation 922,281 894,870
Dividend payment during the year (50,000) (150,000)
Leaving a balance to be carried forward of 872,281 744,870
28

Donations
Donations made during the year amounted to Rs. 118,500 (07/08
- Rs. 106,500)
Taxation
As per the Inland Revenue Act the Company will be exempt on
its profits from agricultural activities. All other sources of income
will be liable to income tax at the rate of 35%. Further details of
taxation are given in Note 26 to the accounts.
Statutory Payments
The Directors, to the best of their knowledge and belief, are
satisfied that all statutory payments have been made up to date.
Employment Policy
The Company’s recruitment and employment policy is
nondiscriminatory. Appraisals of individual employees are carried
out by the respective departmental heads in order to evaluate their
performances and realize their potential and through this process
to benefit the Company and themselves.
Directorate
Kegalle Plantations PLC’s Board consists of 7 Directors with wide
knowledge and experience. The qualifications and experience of
the Board members are detailed under “Profile of Directors”.
Mr. S S Poholiyadde will retire by rotation in terms of Article 92
of the Articles of Association of the Company, and being eligible,
offer himself for re-election at the Annual General Meeting. Mr.
P D Samarasinghe will retire by rotation in terms of Article 92 of
the Articles of Association of the Company and being eligible, offer
himself for re-election at the Annual General Meeting.
The independence of the Directors is given on page 18 of the
Statement of Corporate Governance.
The number of meetings attended by the Directors is stated in page
18 of Corporate Governance Statement.
Mr. L N de S Wijeyeratne does not meet with all criteria to be an
independent director in the fact that he has been in employment
of the ultimate holding Company, during the period of two years
immediately preceding him acting as an independent director
from 30th June 2008. However the Board notes that Mr. L N de
S Wijeyeratne has ceased to be an employee and a director of the
Richard Peiris and Company PLC since 30th June 2008. Accordingly
his present role as an independent director of the Company is
not referable to the fact of him being employed in the ultimate
holding company, Richard Peiris and Company PLC and therefore
the Board is satisfied that he could be rightly construed as an
independent director.
Annual Report of the Board of Directors Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
29
Directors’ Shareholdings
Shareholding of Directors who held office during the financial year
was as follows.
As at 31st March
2009 2008
No of No of
Shares Shares
Mr. L N De S Wijeyeratne - 200
Mr. S S Poholiyadde - 307
Interest Register
As required by the Companies Act No. 7 of 2007, an Interest
Register is being maintained by the Company.
Directors’ Interest in Contract
The Interest of the Directors in contracts entered into by the
Company are given in Note 32 to the Financial Statements. These
interests were disclosed at the Directors’ Meetings where such
contracts were approved.
Committees
Information regarding Audit Committee and Remuneration
Committee are given on pages 20 and 21 respectively.
Internal Control and Responsibility in Respect of
Accounts
The Board has overall responsibility for the Company’s internal
controls. Although no system of internal control provides absolute
assurance against material mis-statement or loss, the Directors are
satisfied that an effective system of internal control is in place to
give reasonable assurance that assets are safeguarded, transactions
are authorized and properly recorded, and material errors and
irregularities are either prevented or detected within a reasonable
period of time.
The Directors are satisfied that the Financial Statements presented
on pages 33 to 65 give a true and fair view of the state of affairs of
the Company as at 31st March 2009 and the profit for the year then
ended. The said Financial Statements have been approved by the
Board resolution dated 9th June 2009. Having no reason to the
contrary, the Financial Statements have been prepared on a going
concern basis.

Annual Report of the Board of Directors Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Further details of Directors’ Responsibilities in relation to Financial
Statements are given on page 31.
Corporate Governance
The policies adopted by the Company are given under “Corporate
Governance” pages 18 and 19.
Managing Agent
The Company’s managing agent has been changed from RPC
Management Services (Pvt.) Ltd to RPC Plantation Management
Services (Pvt) Ltd with effect from 3rd October 2008. The
agreement with the Plantation Ministry in order to cap the
management fee ended during June 2008 and negotiations are in
progress with regard to a new agreement. The basis of computation
of Management Fee was similar to previous years and the basis
of computation of management fee is given under “Corporate
Governance”.
Post Balance Sheet Events
Post Balance Sheet event is disclosed under the same heading in
fi nancial statements in Note 31 on page 63.
Commitments and Contingencies
Capital commitments and Contingencies are given in Notes 29 and
30 to the Financial Statements.
30
Future Development
Profound changes take place in the global commodity market. In
order to stay ahead of its competitors, the strategic direction of
the Company is regularly monitored in the key areas of operations
and fi nancial management, in pursuit of improving yields, value
addition, diversifi cation and product differentiation to reduce price
sensitivity, to improve quality and best return on investment.
Dividend, Earnings & Net Assets per Share
Dividends, Earnings & Net Assets per Share are disclosed in pages
67 and 68 under “Investor Information” section of this report.
Auditors
The accounts for the year have been audited by Messrs. Ernst
& Young, Chartered Accountants, who offer themselves for reappointment.
By the Board resolution dated 9th June 2009, it was
resolved that they be recommended for re-appointment.
On behalf of the Board
Mr. S S Poholiyadde
Director
Mr. P D Samarasinghe
Director
Company Secretary
Richard Pieris Group Services (Pvt.) Ltd.
310, High Level Road,
Nawinna,
Maharagama.
09th June 2009

In keeping with the provisions under the Companies Act No. 7
of 2007, the Directors of Kegalle Plantations PLC, acknowledge
their responsibility in relation to fi nancial reporting of both, the
Company and that of its Group. These responsibilities differ from
those of its Auditors, Messrs. Ernst & Young, which are set out in
their report, appearing on page 28 of this report.
The Financial Statements of the Company and its subsidiaries
for the year ended 31st March 2009 included in this report,
have been prepared and presented in accordance with the Sri
Lanka Accounting Standards and they provide the information as
required by the Companies Act No. 7 of 2007, Sri Lanka Accounting
Standards and the Listing Rules of the Colombo Stock Exchange.
The Directors confi rm that suitable accounting policies have been
used and applied consistently and that all applicable accounting
standards have been followed in the preparation of the Financial
Statements given on pages from 33 to 65 inclusive. All material
deviations from these standards if any have been disclosed and
explained. The judgments and estimates made in the preparation
of these Financial Statements are reasonable and prudent.
The Directors confi rm their responsibility for ensuring that all
Companies within the Group maintain adequate accounting
records, which are suffi cient enough to prepare Financial
Statements that disclose with reasonable accuracy, the fi nancial
position of the Company and its subsidiary. They also confi rm
their responsibility towards ensuring that the Financial Statements
presented in the Annual Report give a true and fair view of the state
of affairs of the Company and its subsidiary as at 31st March 2009,
and that of the profi t for the year then ended.
The overall responsibility for the Company’s internal control
systems lies with the Directors. Whilst recognising the fact that there
is no single system of internal control that could provide absolute
assurance against material misstatements and fraud, the Directors
Statement of Directors’ Responsibility
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
31
confi rm that the prevalent internal control systems instituted by
them which comprise internal checks, internal audit, fi nancial and
other controls are so designed that, there is reasonable assurance
that all assets are safeguarded and transactions properly authorised
and recorded, so that material misstatements and irregularities are
either prevented or detected within a reasonable period of time.
The Directors are of the view that the Company and its subsidiary
have adequate resources to continue operations in the foreseeable
future, as a going concern. Accordingly, the Directors have
continued to use the going- concern basis in the preparation of
these Financial Statements.
The Directors have provided the Auditors Messrs. Ernst & Young
Chartered Accountants, with every opportunity to carry out
reviews and tests that they consider appropriate and necessary for
the performance of their responsibilities. The Company’s Auditors,
Messrs. Ernst & Young, Chartered Accountants have examined the
Financial Statements together with all fi nancial records and related
data and express their opinion which appears as reported by them
on page 32 of this report. In arriving at their opinion, they have
carried out reviews and sample checks on the system of internal
controls
On behalf of the Board,
Mr. S S Poholiyadde
Director
Mr. P D Samarasinghe
Director
Colombo
9th June 2009

Auditor’s Report
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Independent Auditors Report to The Shareholders of
Kegalle Plantations PLC
Report on the Financial Statements
We have audited the accompanying Financial Statements of Kegalle
Plantations PLC and the consolidated Financial Statements of the
Company and its subsidiaries which comprise the Balance Sheet
as at March 31, 2009 and the Income Statement, Statement of
Changes in Equity and Cash Flow Statement for the year then
ended and a summary of significant Accounting Policies and other
explanatory notes.
Management’s Responsibility for the Financial
Statements
Management is responsible for the preparation and fair presentation
of these Financial Statements in accordance with Sri Lanka
Accounting Standards. This responsibility includes: designing,
implementing and maintaining internal controls relevant to the
preparation and fair presentation of Financial Statements that are
free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.
Scope of Audit and Basis of Opinion
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We conducted our audit in
accordance with Sri Lanka Auditing Standards. Those standards
require that we plan and perform the audit to obtain reasonable
assurance whether the Financial Statements are free from material
misstatements.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the Financial Statements. An
audit also includes assessing the accounting principles used and
32
significant estimates made by management, as well as evaluating
the overall Financial Statement presentation.
We have obtained all the information and explanations which
to the best of our knowledge and belief were necessary for the
purpose of our audit. We therefore believe that our audit provides
a reasonable basis for our opinion.
Opinion
– Company
In our opinion, so far as appears from our examination, the
Company maintained proper accounting records for the year
ended March 31, 2009 and the Financial Statements give a true
and fair view of the Company’s state of affairs as at March 31, 2009
and its profit and cash flows for the year then ended in accordance
with Sri Lanka Accounting Standards.
– Group
In our opinion, the consolidated Financial Statements give a
true and fair view of the state of affairs as at March 31, 2009 and
the profit and cash flows for the year then ended, in accordance
with Sri Lanka Accounting Standards of the Company and its
subsidiaries dealt with thereby, so far as concerns the shareholders
of the Company.
Report on Other Legal and Regulatory Requirements
In our opinion, these Financial Statements also comply with the
requirements of Section 151(2) and 153 (2) to 153 (7) of the
Companies Act No. 07 of 2007.
Colombo
9th June 2009
Chartered Accountants
201 De Saram Place
P.O. Box 101
Colombo 10
Sri Lanka
Tel : (0) 11 2463500
Fax Gen : (0) 11 2697369
Tax : (0) 11 5578180
eysl@lk.ey.com
Partners : A D B Talwatte FCA FCMA M P D Cooray FCA FCMA Ms. Y A De Silva ACA W R H Fernando FCA FCMA
W K B S P Fernando FCA ACMA A P A Gunasekera FCA FCMA A Herath FCA D K Hulangamuwa FCA FCMA LLB (Lond)
A S M Ismail FCA FCMA H M A Jayesinghe FCA FCMA Ms. G G S Manatunga ACA Ms. L C G Nanayakkara FCA FCMAB E Wijesuriya ACA ACMA

As at 31 March, 2009
Balance Sheet
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Company Group
2009 2008 2009 2008
Note Rs. Rs. Rs. Rs.
ASSETS
Non Current Assets
Leasehold Property 3 177,852,562 182,760,793 177,852,562 182,760,793
Immovable estates assets on fi nance lease
(other than leasehold Property) 4 157,144,178 168,109,744 157,144,178 168,109,744
Tangible assets other than immature/mature plantations 5 337,344,672 291,923,396 429,722,663 390,659,787
Immature/mature plantations 6 812,359,513 748,743,947 812,359,513 748,743,947
Long Term Investments 7 75,000,010 75,000,010 75,000,010 75,000,010
Other Investment 5,297,498 - 5,297,498 -
1,564,998,433 1,466,537,890 1,657,376,424 1,565,274,281
Current Assets
Inventories 8 146,373,249 202,719,567 149,649,031 216,073,455
Trade and other receivables 9 265,629,743 362,910,316 273,201,362 363,628,594
ACT Recoverable 4,700,987 10,880,447 4,708,442 10,887,901
VAT Recoverable 20,561,248 17,867,531 28,838,864 28,589,444
Amounts due from related companies 10 66,160,925 63,036,917 24,808,295 22,537,555
Short Term Investment 11 379,089,550 198,163,262 379,089,550 198,163,262
Cash and bank balances 64,033,089 16,036,225 64,534,187 16,259,721
946,548,791 871,614,265 924,829,731 856,139,932
TOTAL ASSETS 2,511,547,224 2,338,152,155 2,582,206,155 2,421,414,213
EQUIT Y AND LIABILITIES
Capital and Reserves
Stated Capital 12 250,000,010 250,000,010 250,000,010 250,000,010
General Reserve 225,000,000 225,000,000 225,000,000 225,000,000
Retained Profi t / (Loss) 872,281,208 744,870,053 893,605,468 738,188,081
Shareholders’ Fund 1,347,281,218 1,219,870,063 1,368,605,478 1,213,188,091
Non Current Liabilities & Deferred Income
Interest Bearing Loans & Borrowings 13 291,167,076 241,078,217 291,167,076 268,678,217
Retirement Benefi t Obligations 14 233,477,081 236,203,443 233,571,741 236,203,443
Deferred Income 15 148,092,948 120,353,071 179,780,061 156,256,786
Net liability to the lessor payable after one year 16 294,727,790 298,530,765 294,727,790 298,530,765
967,464,895 896,165,496 999,246,668 959,669,211
Current Liabilities
Interest Bearing Loans & Borrowings 13 56,373,793 56,764,416 56,373,793 74,219,374
Net liability to the lessor payable within one year 16 3,802,975 3,657,099 3,802,975 3,657,099
Trade and other payables 17 125,950,139 149,509,670 133,100,457 153,615,491
Dividends payable 18 740,073 4,223,948 740,073 4,223,948
Amounts due to related companies 20 306,057 79,306 10,708,638 4,958,841
Income Tax Payable 26.2 9,628,074 7,882,157 9,628,073 7,882,157
196,801,111 222,116,596 214,354,009 248,556,910
TOTAL EQUIT Y AND LIABILITIES 2,511,547,224 2,338,152,155 2,582,206,155 2,421,414,213
These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
L C Herath
Chief Financial Offi cer
The Board of Directors is responsible for the preparation and presentationn of these Financial Statements. Signed for and on behalf of the Board of
Directors of Kegalle Plantations PLC
S S Poholiyadde P D Samarasinghe
Director Director
The Accounting Policies and notes on Pages 38 through 65 form an integral part of the Financial Statements.
Colombo
9th June 2009
33

Income Statement
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31 March 2009
Company Group
2009 2008 2009 2008
Note Rs. Rs. Rs. Rs.
Revenue 21 1,927,761,683 2,163,030,447 1,942,721,959 2,163,030,446
Cost of Sales (1,507,215,504) (1,564,902,359) (1,531,603,901) (1,564,902,358)
Gross Profit 420,546,179 598,128,088 411,118,058 598,128,088
Other Income 22 61,148,752 37,790,679 65,365,355 36,860,730
Administration Expenses (58,509,907) (46,525,666) (64,885,833) (46,525,666)
Management Fee (71,748,914) (107,409,173) (71,748,914) (107,409,173)
Finance Cost 23 (55,387,507) (41,205,895) (61,684,370) (41,205,895)
Provision for Diminishing - (2,401,991) - -
in Value of Investment
Provision for Doubtfull Receivables 24 (104,890,539) - (59,000,000) -
Goodwill Written Off - - - (8,154,013)
Profit Before Taxation 25 191,158,064 438,376,042 219,164,296 431,694,071
Income Tax Expense 26 (13,746,909) (10,778,759) (13,746,909) (10,778,759)
Profit for the Year 177,411,155 427,597,283 205,417,387 420,915,312
Basic Earnings Per Share 27 7.10 17.10 8.22 16.84
The Accounting Policies and notes on Pages 38 through 65 form an integral part of the Financial Statements.
Colombo
9th June 2009
34

K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31 March 2009
Company Group
2009 2008 2009 2008
Note Rs. Rs. Rs. Rs.
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit/(Loss) before Taxation 191,158,064 438,376,042 219,164,296 431,694,071
ADJUSTMENTS FOR
Goodwill Written Off - - - 8,154,013
Interest Income 22 (38,722,426) (9,243,057) (38,722,426) (9,243,057)
Depreciation / Amortization 25 72,777,088 65,916,931 79,135,487 72,256,817
Provision for Defined Benefit Plan Costs 14 34,325,973 57,194,984 34,420,633 57,194,984
Defined Benefit Plan Costs paid 14 (37,052,335) (19,922,179) (37,052,335) (19,922,179)
Amortization of Grants 22 (4,677,969) (3,870,733) (8,894,571) (8,357,464)
Finance Costs 23 55,387,507 41,205,895 64,684,370 56,812,438
Provision for Diminishing in Value of Investment - 2,401,991 - (11,599,009)
Provisin for Bad & Doubtful Debt 104,890,539 - 59,000,000 -
Operating Profit before Working Capital Changes 378,086,441 572,059,874 371,735,454 576,990,614
(Increase)/Decrease in Trade & Other Receivables 9 44,586,855 (179,803) 90,177,810 2,465,414
(Increase)/Decrease in Inventories 8 56,346,318 6,750,153 66,424,425 (700,233)
(Increase)/Decrease in Amounts due from
Related Companies 10 (58,014,547) 13,610,374 (58,014,547) 13,610,374
Increase/(Decrease) in Trade & Other Payables 17 (23,561,818) 10,704,341 (20,517,322) 12,161,223
Increase/(Decrease) in Amounts due to
Related Companies 20 226,750 (16,111,395) (506,397) (12,394,423)
Cash Generated from Operations 397,669,999 586,833,544 449,299,423 592,132,969
ESC Paid (5,461,719) (5,492,031) (5,461,719) (5,492,031)
Finance Cost Paid (38,286,882) (23,964,392) (44,583,745) (39,570,936)
Income Tax Paid (357,526) (5,286,728) (357,526) (5,286,728)
Net Cash from Operating Activities 353,563,872 552,090,393 398,896,433 541,783,274
CASH FLOWS FROM INVESTING ACTIVITIES
Investments (5,297,498) (72,598,999) (5,297,498) (72,598,999)
Interest Received 38,722,426 9,243,057 38,722,426 9,243,057
Grant Received 22 32,417,846 26,833,876 32,417,846 28,677,379
Field Development Expenditure Note A (89,992,790) (61,159,302) (89,992,790) (61,159,302)
Purchase of Property, Plant & Equipment Note B (75,947,341) (58,050,267) (75,947,341) (59,809,953)
Net Cash used in Investing Activities (100,097,357) (155,731,635) (100,097,357) (155,647,818)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend Paid (53,483,875) (146,350,228) (53,483,875) (146,350,228)
Payment of Government lease rentals (17,100,625) (17,241,607) (17,100,625) (17,241,607)
Payment of Lease Rentals (3,657,099) (3,657,099) (3,657,099) (3,657,099)
Proceeds from Loans 99,128,000 92,614,047 99,128,000 92,614,047
Repayment of Loans (48,364,118) (95,633,786) (83,164,118) (96,833,786)
Net Cash from Financing Activities (23,477,717) (170,268,673) (58,277,717) (171,468,673)
Net Increase/(Decrease) in Cash & Cash Equivalents 229,988,798 226,090,085 240,521,359 214,666,783
Cash & Cash Equivalents at the beginning of the Year Note C 213,133,841 (12,956,244) 203,102,378 (11,564,405)
Cash & Cash Equivalents at the end of the Year Note D 443,122,639 213,133,841 443,623,737 203,102,378
The Accounting Policies and notes on Pages 38 through 65 form an integral part of the Financial Statements.
Colombo
9th June 2009
Cash Flow Statement
35

Cash Flow Statement Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31 March 2009
NOTE A Tea Rubber Other Crops Unallocated Total
Rs. Rs. Rs. Rs. Rs.
Investment in Field Development Expenditure
Investment in Immature Plantations 2008/09 14,214,550 67,680,587 2,317,020 5,780,633 89,992,790
Investment in Immature Plantations 2007/08 5,922,465 50,079,404 1,829,915 3,327,518 61,159,302
NOTE B
Investment in Property, Plant & Equipment
Investment in Property, Plant & Equipment 2008/09 (Company) 35,747,425 38,871,304 - 1,328,617 75,947,346
Investment in Property, Plant & Equipment 2008/09 (Group) 35,747,425 38,871,304 - 1,328,617 75,947,346
Investment in Property, Plant & Equipment 2007/08 (Company) 28,942,233 27,972,026 - 1,136,008 58,050,267
Investment in Property, Plant & Equipment 2007/08 (Group) 28,942,233 27,972,026 - 2,895,694 59,809,953
Company Group
2009 2008 2009 2008
NOTE C Rs. Rs. Rs. Rs.
Cash & Cash Equivalents at the beginning of the year
Cash in Hand & Bank 16,036,225 5,111,881 16,259,721 6,503,720
Bank Overdraft (1,065,646) (18,068,125) (11,320,605) (18,068,125)
Investment in Treasury Bills 198,163,262 - 198,163,262 -
213,133,841 (12,956,244) 203,102,378 (11,564,405)
NOTE D
Cash & Cash Equivalents at the end of the year
Cash in Hand & Bank 64,033,089 16,036,225 64,534,187 16,259,721
Bank Overdraft - (1,065,646) - (11,320,605)
Investment in Treasury Bills 379,089,550 198,163,262 379,089,550 198,163,262
443,122,639 213,133,841 443,623,737 203,102,378
36

Year Ended 31 March 2009
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Company Stated Capital General Accumulated Total
Reserve Profit/(Loss)
Rs Rs Rs Rs
Balance as at 31 March 2007 250,000,010 225,000,000 467,272,770 942,272,780
Net profit for the year - - 427,597,283 427,597,283
Dividends paid - - (150,000,000) (150,000,000)
Balance as at 31 March 2008 250,000,010 225,000,000 744,870,053 1,219,870,063
Net profit for the year - - 177,411,155 177,411,155
Dividends paid - - (50,000,000) (50,000,000)
Balance as at 31 March 2009 250,000,010 225,000,000 872,281,208 1,347,281,218
Group Stated Capital General Accumulated Total
Reserve Profit/(Loss)
Rs Rs Rs Rs
Balance as at 31 March 2007 250,000,010 225,000,000 467,272,770 942,272,780
Net profit for the year - - 420,915,312 420,915,312
Dividends paid - - (150,000,000) (150,000,000)
Balance as at 31 March 2008 250,000,010 225,000,000 738,188,081 1,213,188,091
Net profit for the year - - 205,417,387 205,417,387
Dividends paid - - (50,000,000) (50,000,000)
Balance as at 31 March 2009 250,000,010 225,000,000 893,605,468 1,368,605,478
The Accounting Policies and notes on Pages 38 through 65 form an integral part of the Financial Statements.
Colombo
9th June 2009
Statement of Changes in Equity
37

Notes to the Financial Statements
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
1. CORPORATE INFORMATION
1.1 Domicile and Legal Form
Kegalle Plantations PLC is a limited liability Company
incorporated and domiciled in Sri Lanka, under
the Companies Act No. 17 of 1982 in terms of the
provisions of the Conversion of Public Corporations or
Government Owned Business Undertaking into Public
Companies Act No. 23 of 1987. The registered office
of the Company is located at 310, High Level Road,
Nawinna, Maharagama, and Plantations are situated in
the planting districts of Kegalle & Nuwara Eliya.
1.2 Principal Activities and Nature of Operations
During the year, the principal activities of the company
were the cultivation, manufacture and sale of Tea,
Rubber, Coconut, Cardamom & other agricultural
produce.
1.3 Parent enterprise and Ultimate Parent Enterprise
The Company’s parent undertaking is RPC Plantation
Management Services (Pvt) Ltd. (With effect from
03rd October 2008) In the opinion of the directors,
the Company’s ultimate parent undertaking and
controlling party is Richard Pieris & Co. Ltd., which is
incorporated in Sri Lanka.
1.4 Date of Authorization for issue.
The financial statements of Kegalle Plantations PLC for
the year ended 31st March 2009 were authorized for
issue in accordance with a resolution of the board of
directors on 9th June 2009.
2 BASIS OF PREPARATION
These financial statements have been prepared on a
historical cost basis except for certain Property, Plant
and Equipment which are stated at revalued amounts.
The financial statements are presented in Sri Lankan
Rupees and all values are rounded to the nearest
Rupee.
2.1.1 Statement of Compliance
The financial statements of Kegalle Plantations PLC
have been prepared in accordance with the Sri Lanka
Accounting Standards (SLAS) adopted by the Institute
of Chartered Accountants of Sri Lanka (ICASL) and also
38
in compliance with the requirements of the Companies
Act No 07 of 2007.
2.1.2 Going Concern
The Directors have made an assessment of the
Company’s ability to continue as a going concern
and they do not intend either to liquidate or to cease
trading.
2.1.3 Comparative Information
The accounting policies have been consistently applied
by the Company and are consistent with those used in
the previous year unless otherwise stated.
2.1.4 Consolidation Policy
2.1.4.1 Kegalle Plantations PLC own 100% ordinary shares of
Hamefa Kegalle (Pvt) Ltd which is incorporated in Sri
Lanka.
2.1.4.2 The consolidated Financial Statements include results,
assets & liabilities of Kegalle Plantations PLC and its
subsidiary Hamefa Kegalle (Pvt) Ltd.
2.1.4.3 All Companies in the Group have a common financial
year end on 31st March.
2.1.4.4 Goodwill arising on the acquisition of the subsidiaries
written off to the Income Statements.
2.2 SIGNIFICANT ACCOUNTING JUDGMENTS,
ESTIMATES AND ASSUMPTIONS
Judgments
In the purpose of applying the Company’s accounting
policies, management has made the following
judgments, apart from those involving estimations,
which has the most significant effect on the amounts
recognized in the Financial Statements.
Inventory valuation – Produce stock
Company has valued part of unsold produce stock
at since realized prices. The balance unsold stock
remained as at the Balance Sheet date valued at an
estimated selling prices based on most recent selling
prices available subsequent to the year end.
Estimates and Assumptions
The key assumptions concerning the future and other
key sources of estimation uncertainty at the Balance

Sheet date, that have a significant risk of causing a
material adjustments to the carrying amounts of
assets and liabilities within the next financial year are
discussed below.
Impairment of Goodwill
The Company determines whether goodwill is
impaired at least on an annual basis. This requires an
estimation of the “value in use” of the cash generating
units to which the goodwill is allocated. Estimating a
value in use amount requires management to make an
estimate of the expected future cash flows from the
cash generating unit and also to choose a suitable
discount rate in order to calculate present value of
those cash flows. However, at present Company does
not have any recorded Goodwill balance as at the
Balance Sheet date.
Deferred Tax Assets
Deferred tax assets are recognised for all unused tax
losses to the extent that it is probable that taxable
profit will be available against which the losses can be
utilised. Significant management judgment is required
to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and
level of future taxable profits together with future
tax planning strategies. The carrying value of the
unrecognised deferred tax assets as at 31st March 2009
was Rs. 127,201,981/-(2008 - Rs. 148,870,703/-).
Defined Benefit Plans
The cost of defined benefit pension plan is determined
using actuarial valuations. The actuarial valuation
involves making assumptions about discount rates,
expected rates of return on assets, future salary
increases, mortality rates and future pension increases.
Due to the long term nature of these plans, such
estimates are subject to significant uncertainty. The
net employee liability as per actuary as at 31st March
2009 is Rs. 233,477,081/- (2008 - Rs. 236,203,443/-).
Further details are given in Note 14.
2.3 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
2.3.1 Foreign Currency Translation and Hedging
The Financial Statements are presented in Sri
Lankan rupees, which is the Company’s functional
and presentation currency. Transactions in foreign
currencies are initially recorded at the functional
currency rate ruling at the date of the transaction.
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
39
2.3.2 Taxation
Monetary assets and liabilities denominated in foreign
currencies are retranslated at the functional currency
rate of exchange ruling at the Balance Sheet date. All
differences are taken to profit or loss with the exception
of differences on foreign currency borrowings that
provide a hedge against a net investment in a foreign
entity. These are taken directly to equity until the
disposal of the net investment, at which time they
are recognised in profit or loss. Tax charges and
credits attributable to exchange differences on those
borrowings are also dealt with in equity. Non monetary
items that are measured in terms of historical cost in
a foreign currency are translated using the exchange
rates as at the dates of the initial transactions. Non
monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the
date when the fair value was determined. Any goodwill
arising on the acquisition of a foreign operation and
any fair value adjustments to the carrying amounts
of assets and liabilities arising on the acquisition are
treated as assets and liabilities of the foreign operation
and translated at the closing rate.
a) Current Taxes
Current income tax assets and liabilities for the current
and prior periods are measured at the amount expected
to be recovered from or paid to the commissioner
general of Inland Revenue. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted by the Balance Sheet date.
The provision for income tax is based on the elements
of income and expenditure as reported in the Financial
Statements and computed in accordance with the
provisions of the Inland Revenue Act.
Current income tax relating to items recognised
directly in equity is recognised in equity and not in the
Income Statement.
b) Deferred Taxation
Deferred income tax is provided, using the liability
method, on all temporary differences at the Balance
Sheet date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting
purposes.

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Deferred income tax liabilities are recognised for all
taxable temporary differences:
l except where the deferred income tax liability
arises from goodwill amortisation or the initial
recognition of an asset or liability in a transaction
that is not a business combination and, at the time
of the transaction, affects neither the accounting
profit nor taxable profit or loss; and
l in respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, except
where the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse in
the foreseeable future.
Deferred income tax assets are recognised for all
deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent
that it is probable that taxable profit will be available
against which the deductible temporary differences,
and the carry-forward of unused tax assets and unused
tax losses can be utilised:
l except where the deferred income tax asset relating
to the deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
l in respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, deferred
tax assets are only recognised to the extent that
it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit
will be available against which the temporary
differences can be utilised.
The carrying amount of deferred income tax assets is
reviewed at each Balance Sheet date and reduced to
the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured
at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been
40
enacted or substantively enacted at the Balance Sheet
date.
Deferred income tax relating to items recognised
directly in equity is recognised in equity and not in the
Income Statement.
2.3.3 Borrowing costs
Borrowing costs are recognised as an expense in the
period in which they are incurred, except to the extent
where borrowing costs that are directly attributable
to the acquisition, construction, or production of a
qualifying asset that takes a substantial period of time
to get ready for its intended use or sale is capitalised as
part of that asset.
Borrowing Costs amounting to Rs. 4,148,234/- (2008
Rs. 4,581,115/-) incurred on borrowings obtained to
meet expenses relating to immature plantations have
been capitalised as part of the cost of the immature
plantations.
2.3.4 Intangible Assets
Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is fair value
as at the date of acquisition. Following the initial
recognition of the intangible assets, the cost model
is applied requiring the assets to be carried at cost
less any accumulated amortisation and accumulated
impairment losses. Internally generated intangible
assets, excluding capitalised development costs are not
capitalised and expenditure is reflected in the Income
Statement in the year in which the expenditure is
incurred.
The useful lives of intangible assets are assessed to be
either finite or indefinite.
Intangible assets with finite lives are amortised over
the useful economic life and assessed for impairment
whenever there is an indication that the intangible
asset may be impaired. The amortisation period and
the amortisation method for an intangible asset with
a finite useful life is reviewed at least at each financial
year end. Changes in the expected useful life or the
expected pattern of consumption of future economic
benefits embodied in the asset is accounted for by
changing the amortisation period or method, as
appropriate, and treated as changes in accounting
estimates. The amortisation expense on intangible

assets with finite lives is recognised in the Income
Statement in the expense category consistent with
the function of the intangible asset. Amortisation was
commenced when the assets were available for use.
As at the Balance Sheet date, Company does not have
any intangible assets with finite lives.
Intangible assets with indefinite useful lives are tested
for impairment annually either individually or at the
cash generating unit level. Such intangibles are not
amortised. The useful life of an intangible asset with
an indefinite life is reviewed annually to determine
whether indefinite life assessment continues to
be supportable. If not, the change in the useful life
assessment from indefinite to finite is made on a
prospective basis.
Intangible assets that are not yet available for sale are
tested for impairments at each financial year end, even
if there is no indication that the asset is impaired. As
at the Balance Sheet date, company does not have any
intangible assets with indefinite lives.
Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognised in the Income
Statement when the asset is derecognised
Research and Development Costs
Research costs are expensed as incurred. An intangible
asset arising from development expenditure on an
individual project is recognised only when the company
can demonstrate the technical feasibility of completing
the intangible assets so that it will be available for use
or sale, its intention to complete and its ability to use
or sell the assets, how the assets will generate future
economic benefits, the availability of recourses to
complete the assets and the ability to measure reliably
the expenditure during the development.
During the period of development, the assets is
tested for impairment annually, following the initial
recognition of the development expenditure, the
cost model is applied requiring the assets to be
carried at cost less any accumulated amortisation and
accumulated impairment losses. Amortisation of the
assets begins when development is complete and the
asset is available for use. It is amortised over the period
of expected future sales. During the period of which
the asset is not yet in use it is tested for impairments
annually.
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
41
2.3.5 Deferred Expenditure
Expenditure which is deemed to have a benefit or
relationship to more than one financial year is classified
as deferred expenditure. Such expenditure is written
off over the period to which it relates, on a straight line
basis.
2.3.6 Inventories
Inventories other than produce stocks are valued at
the lower of cost and net realisable value, after making
due allowances for obsolete and slow moving items.
Net realisable value is the price at which inventories
can be sold in the ordinary course of business less
the estimated cost of completion and estimated cost
necessary to make the sale.
Input Material At average cost
Growing Crop-Nurseries At the cost of direct
materials, direct labour
and an appropriate
proportion of directly
attributable overheads
Produce Stocks Valued at estimated selling
prices or since realised
prices
Spares & Consumables At average cost
2.3.7 Trade and Other Receivables
Trade receivables are stated at the amounts they are
estimated to realise inclusive of provisions for bad and
doubtful receivables.
Other receivables and dues from related parties are
recognised at cost less provision for bad and doubtful
receivables.
2.3.8 Cash and Cash Equivalents
Cash and Cash Equivalents are defined as cash in
hand, demand deposits and short-term highly liquid
investments readily convertible to known amounts
of cash and subject to insignificant risk of changes in
value.

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
For the purpose of Cash Flow Statement Cash and Cash
Equivalent consists of cash in hand and deposits in
banks net of outstanding bank overdrafts. Investments
with short term maturities i.e. three months or less
from the date of acquisitions are also treated as Cash
Equivalents.
Interest paid and received is classified as operating
Cash Flows.
The Cash Flow Statement reported based on indirect
method.
2.3.9 Property, Plant and Equipment
a) Cost
Property, Plant & Equipment is recorded at cost less
accumulated depreciation and less any impairment in
value.
b) Cost and Valuation
All items of Property, Plant & Equipment are initially
recorded at cost. Where items of Property, Plant and
Equipment are subsequently revalued, the entire
class of such assets is revalued. Revaluations are made
with sufficient regularity to ensure that their carrying
amounts do not differ materially from their fair values
at the Balance Sheet date. Subsequent to the initial
recognition as an asset at cost, revalued Property,
Plant and Equipment are carried at revalued amounts
less any subsequent depreciation thereon. All other
Property, Plant and Equipment are stated at historical
cost less depreciation.
When an asset is revalued, any increase in the carrying
amount is credited directly to a revaluation surplus
unless it reverses a previous revaluation decrease
relating to the same asset, which was previously
recognised as an expense. In these circumstances the
increase is recognised as income to the extent of the
previous written down value. When an asset’s carrying
amount is decreased as a result of a revaluation, the
decrease is recognised as an expense unless it reverses
a previous increment relating to that asset, in which
case it is charged against any related revaluation
surplus, to the extent that the decrease does not
exceed the amount held in the revaluation surplus
in respect of that same asset. Any balance remaining
in the revaluation surplus in respect of an asset, is
transferred directly to accumulated profits or loss on
retirement or disposal of the asset.
42
c) Restoration Costs
Expenditure incurred on repairs or maintenance of
property, plant and equipment in order to restore
or maintain the future economic benefits expected
from originally assessed standard of performance, is
recognised as an expense when incurred.
d) Depreciation
The provision for depreciation is calculated on the cost
or valuation of all property, plant and equipment other
than freehold land, in order to write off such amounts
over the estimated useful lives by equal instalments as
follows:
Buildings Over 40 years
Plant & Machinery Over 13 years
Furniture & Fittings Over 10 years
Vehicles Over 05 years
Equipments Over 08 years
Sanitation, Water Supply &
Electricity Over 20 years
Computers Over 08 years
Lines & Latrines Over 40 years
Replanting and New Planting
Tea Over 33 years
Rubber Over 20 years
Coconut Over 50 years
The leasehold rights are being amortised in equal
amounts over the following periods.
Leasehold Property Over 53 years
Mature Plantations Over 30 years
Buildings Over 25 years
Machinery Over 15 years
Improvements to Land Over 30 years
The asset’s residual values, useful lives and methods of
depreciation are reviewed, and adjusted if appropriate,
at each financial year end.
e) Derecognition
An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition
of the asset (calculated as the difference between the
net disposal proceeds and the carrying amount of the
asset) is included in the Income Statement in the year
the asset is derecognised.

2.3.10 Immature and Mature Plantations
The cost of Replanting and New Planting are classified
as immature plantations up to the time of harvesting
the crop.
The cost of areas coming into bearing are transferred
to mature plantations and depreciated over their
useful life period.
2.3.11 Infilling Cost
2.3.12 Leases
Where infilling results in an increase in the economic
life of the relevant field beyond its previously assessed
standard of performance, the costs are capitalised in
accordance with Sri Lanka Accounting Standard No. 32
and depreciated over the useful life at rates applicable
to mature plantation.
Infilling costs that are not capitalised have been
charged to the Income Statement in the year in which
they are incurred.
a) Finance leases - where the company is the lessee
Property, plant and equipment on finance leases,
(which effectively transfer to the Company substantially
all of the risks and benefits incidental to ownership of
the leased item) are capitalised at their cash price, and
depreciated/amortised over the period the Company is
expected to benefit from the use of the leased assets.
The corresponding principal amount payable to the
lessor is shown as a liability.
The finance charges allocated to future periods are
separately disclosed under Note 16.
The interest element of the rental obligation applicable
to each financial year is charged to the Income
Statement over the period of the lease so as to produce
a constant periodic rate of interest on the remaining
balance of the liability for each period.
The cost of improvements to or on leased property
is capitalised, and depreciated over the unexpired
period of the lease or the estimated useful lives of the
improvements, whichever is shorter.
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
43
b) Operating Leases
Leases where the lessor effectively retains substantially
all the risks and benefits of ownership over the leased
term are classified as operating leases.
Lease payments (excluding costs for services such as
insurance and maintenance) paid under operating
leases are recognised as an expense in the Income
Statement on a straight-line basis over the lease term.
c) Leasehold Property
Leasehold property comprising of land use rights
obtained on a long term basis, is stated at the recorded
carrying values as at the effective date of Sri Lanka
Accounting Standard 19 – Leases in line with Ruling
of the Urgent Issues Task Force of The Institute of
Chartered Accountants of Sri Lanka. Such carrying
amounts are amortised over the remaining lease
term or useful life of the leased property whichever is
shorter.
2.3.13 Investments
a) Initial Recognition
Cost of investment includes purchase cost and
acquisition charges such as brokerages, fees, duties
and bank regulatory fees. The company distinguishes
and presents current and non current investment in
the Balance Sheet.
b) Measurement
Current Investment
Current investments are carried at the lower of cost
and market value, determined on the basis of aggregate
portfolio.
Unrealized losses arising from reduction to market
value and reversals of such reduction required to state
current investments at lower of cost and market value
are included in Income Statement.
Long Term Investments
Long term investments are stated at cost. Carrying
amounts are reduced to recognize a decline other
than temporary, determined for each investment
individually. These reductions for other than temporary
declines in carrying amounts are charged to Income
Statement.
Disposal of Investment
On disposal of an investment, the different between
net disposals and proceed and the carrying amounts is
recognised as income or expense.

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
2.3.14 Provisions
Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result
of a past event, where it is probable that an outflow
of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. If the
effect of the time value of money is material, provisions
are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where
appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due
to the passage of time is recognized as an interest
expense.
2.3.15 Retirement Benefit Obligation
a) Defined Benefit Plans –Gratuity
The Company measures the present value of the
promised retirement benefits of gratuity which is
a defined benefit plan with the advice of an actuary
every two years using projected benefits valuation
method. Actuarial gains and losses are recognised
as income or expenses over the expected average
remaining working lives of the participants of the plan.
The key assumptions used by the actuary include the
followings:
i) Rate of Discount - 10%
(per annum)
ii) Rate of Salary Increase - Workers 11%every
two years
- Staff 20% every
three years
iii) Retirement Age - Workers 60 years
- Staff 60 years
In addition, annual increase in salaries of staff
employees at the rate of 2.50% per annum and annual
increase of 7.50% per annum in the cost of living
allowance was assumed.
iv) The company will continue as a going concern.
The actuarial present value of the accrued benefits as
at 31st March 2009 is Rs. 233,477,081/- This item is
grouped under retirement benefit obligations in the
Balance Sheet. The liability is not externally funded.
44
b) Defined Contribution Plans – Employees’
Provident Fund & Employees’ Trust Fund
Employees are eligible for Employees’ Provident
Fund Contributions and Employees’ Trust Fund
Contributions in line with the respective statutes and
regulations. The Company contributes 12% and 3%
of gross emoluments of employees to the Employees’
Provident Fund and to the Employees’ Trust Fund
respectively.
2.3.16 Grants and Subsidies
Grants and subsidies are recognised at their fair value
where there is reasonable assurance that the grant/
subsidy will be received and all attaching conditions, if
any, will be complied with. When the grant or subsidy
relates to an income item it is recognised as income
over the periods necessary to match them to the costs
to which it is intended to compensate on a systematic
basis.
Grants and subsidies related to assets, including
non-monetary grants at fair value are deferred in the
Balance Sheet and credited to the Income Statement
over the useful life of the asset.
2.3.17 Impairment of Non Financial Assets
The Company assesses at each reporting date whether
there is an indication that an asset may be impaired. If
any such indication exists, or when annual impairment
testing for an asset is required, the Company makes an
estimate of the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cashgenerating
unit’s fair value less costs to sell and its
value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that
are largely independent of those from other assets
or groups of assets. Where the carrying amount of
an asset exceeds its recoverable amount, the asset
is considered impaired and is written down to its
recoverable amount. In assessing value in use, the
estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects
current market assessments of the time value of money
and the risks specific to the asset. In determining
fair value less costs to sell, an appropriate valuation
model is used. These calculations are corroborated
by valuation multiples, quoted share prices or other
available fair value indicators.

Impairment losses of continuing operations are
recognised in the Income Statement in those expense
categories consistent with the function of the impaired
asset, except for property previously revalued where
the revaluation was taken to equity. In this case the
impairment is also recognised in equity up to the
amount of any previous revaluation.
For assets excluding goodwill, an assessment is made
at each reporting date as to whether there is any
indication that previously recognised impairment
losses may no longer exist or may have decreased. If
such indication exists, the Company makes an estimate
of recoverable amount. A previously recognised
impairment loss is reversed only if there has been a
change in the estimates used to determine the asset’s
recoverable amount since the last impairment loss
was recognised. If that is the case the carrying amount
of the asset is increased to its recoverable amount.
That increased amount cannot ‘’exceed’ the carrying
amount that would have been determined, net of
depreciation, had no impairment loss been recognised
for the asset in prior years. Such reversal is recognised
in the Income Statement unless the asset is carried at
revalued amount, in which case the reversal is treated
as a revaluation increase. Impairment losses recognised
in relation to goodwill are not reversed for subsequent
increases in its recoverable amount.
The following criteria are also applied in assessing
impairment of specific assets:
Goodwill
Goodwill is reviewed for impairment, annually or
more frequently if events or changes in circumstances
indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing
the recoverable amount of the cash-generating unit
(or group of cash-generating units), to which the
goodwill relates. Where the recoverable amount of
the cash-generating unit (or group of cash-generating
units) is less than the carrying amount of the cashgenerating
unit (group of cash-generating units) to
which goodwill has been allocated, an impairment loss
is recognised. Impairment losses relating to Goodwill
cannot be reversed in future periods. The Company
performs its annual impairment test of goodwill as at
31st March. However, at present Company does not
have any recorded Goodwill as at the Balance Sheet
date.
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
45
Intangible Assets
Intangible assets with indefinite useful lives are tested
for impairment annually as of 31st March either
individually or at the cash generating unit level, as
appropriate. However, at present Company does not
have any recorded intangible assets as at the Balance
Sheet date.
2.3.18 Income Statement
Revenue Recognition
Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue and associated costs incurred or
to be incurred can be reliably measured. Revenue
is measured at the fair value of the consideration
received or receivable net of trade discounts and sales
taxes. The following specific criteria are used for the
purpose of recognition of revenue.
(a) Sale of Goods
Revenue from the sale of goods is recognised when
the significant risks and rewards of ownership of the
goods have passed to the buyer, usually on dispatch of
the goods.
(b) Interest
Interest Income is recognised as the interest accrued
(taking into account the effective yield on the asset)
unless collectibility is in doubt.
(c) Dividends
Dividend income is recognised on a cash basis.
(d) Rental income
Rental income is recognised on an accrual basis.
(e) Royalties
Royalties are recognised on an accrual basis in
accordance with the substance of the relevant
agreement.
( f ) Others
Other income is recognised on an accrual basis.
Net Gains and losses of a revenue nature on the
disposal of property, plant & equipment and other
non current assets including investments have been
accounted for in the Income Statement, having
deducted from proceeds on disposal, the carrying

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
amount of the assets and related selling expenses. On
disposal of revalued property, plant and equipment,
amount remaining in Revaluation Reserve relating to
that asset is transferred directly to Accumulated Profit /
(Loss).
Gains and losses arising from incidental activities to
main revenue generating activities and those arising
from a group of similar transactions which are not
material, are aggregated, reported and presented on a
net basis.
Expenditure Recognition
a) Expenses are recognised in the Income Statement
on the basis of a direct association between the cost
46
incurred and the earning of specific items of income.
All expenditure incurred in the running of the business
and in maintaining the property, plant & equipment
in a state of efficiency has been charged to income in
arriving at the Profit/ (Loss) for the year.
b) For the purpose of presentation of the Income
Statement the Directors are of the opinion that function
of expenses method presents fairly the elements of the
Company’s performance, and hence such presentation
method is adopted.

Year Ended 31st March 2009
3. LEASEHOLD PROPERTY
Of the 21 JEDB estates handed over to the Company, leases in respect of Ambanpitiya estate have not been executed as at the Balance Sheet date. All of these leases
will be retroactive to June 22, 1992 the date of formation of the Company. The leasehold right to bare land on all of these estates has been taken into the books of the
Company to June 22, 1992 immediately after the formation of the Company in terms of the ruling obtained from the Urgent Issue Task Force (UITF) of the Institute of
Chartered Accountants of Sri Lanka. For this purpose the Board decided at the meeting on March 8, 1995 that this bare land would be revalued at the value established
for the land by Valuation Specialist, Mr. D.R. Wickremasinghe, just prior to the formation of the Company. The value taken into the June 22, 1992 Balance Sheet and
the amorisation of the leasehold rights to 31st March 2009 are as follows.
The above mentioned leasehold right to bare land comprising of land use rights obtained on a long term basis is re-classified as leasehold property and stated at the
recorded carrying values as at the effective date of Sri Lanka Accounting Standard 19 Leases, in line with revised Ruling of the Urgent Issues Task Force of the Institute
of Chartered Accountants of Sri Lanka. Such carrying amounts are amortized over the remaining lease term or useful life of the leased property whichever is shorter.
The leasehold right to land is disclosed under non current assets under leasehold property. The revised UITF ruling does not permit further revaluation of Leasehold
Property. The values taken into the 22nd June 1992 balance sheet and amortization of the leasehold property up to 31st March 2009 are as follows.
Accumulated Accumulated
Revaluation Balance Amortization Amortization Amortization W.D.V W.D.V
as at as at as at during the as at As At As At
22.06.92 01.04.08 01.04.08 year 31.03.09 31.03.09 31.03.08
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Leasehold Property 260,142,080 260,142,080 77,381,287 4,908,231 82,289,518 177,852,562 182,760,793
260,142,080 260,142,080 77,381,287 4,908,231 82,289,518 177,852,562 182,760,793
47
The unexpired period of the lease as at the Balance Sheet date is 36 years.
4. IMMOVABLE JEDB ESTATE ASSETS ON FINANCE LEASE (OTHER THAN LEASEHOLD PROPERTY )
As explained in Note 3, although all JEDB estate leases have not been executed as at the Balance Sheet date, in terms of the ruling of the UITF of the Institute of
Chartered Accountants of Sri Lanka, all immovable assets in these estates under finance leases have been taken into books of the Company retroactive to June 22, 1992.
For this purpose the Board decided at its meeting on March 8, 1995 that these assets would be revalued at their book values as they appear in the books of the JEDB as
the case may be on the day immediately preceding the date of formation of the Company. These assets are taken into the 22nd June 1992 Balance Sheet and amortised
as follows :
Accumulated Accumulated Accumulated
Revaluation Transfers Disposal Value Amortisation Amortisation Amortization W.D.V W.D.V
As At as at during the as at as at during the as at As At As At
22.06.92 01.04.03 year 99/00 01.04.08 01.04.08 year 31.03.09 31.03.09 31.03.08
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs
Improvements to Land 191,597 - - 191,597 100,752 6,381 107,133 84,464 90,845
Mature Plantations 75,164,810 188,149,522 (633,915) 262,680,417 114,565,571 8,791,850 123,357,421 139,322,996 148,114,846
Immature Plantations 188,149,522 (188,149,522) - - - - - - -
Buildings 53,935,172 - - 53,935,172 34,031,123 2,167,333 36,198,456 17,736,716 19,904,049
Machinery 24,288,713 - - 24,288,713 24,288,709 2 24,288,711 2 4
341,729,814 - (633,915) 341,095,899 172,986,155 10,965,566 183,951,721 157,144,178 168,109,744
Note : Investment in plantation assets which were immature at the time of handing over to the Company by way of estate leases are shown under immature plantation (revalued as at 22nd
June 1992) all of which have been transferred to mature plantations as at the Balance Sheet date.

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31st March 2009
5. TANGIBLE ASSETS OTHER THAN Balance Additions Disposals/Transfers Balance
IMMATURE/MATURE PLANTATIONS as at for the during the as at
01.04.08 year year 31.03.09
Company Rs. Rs. Rs. Rs.
Cost
Buildings 32,784,703 10,777,334 - 43,562,037
Motor Vehicles 75,092,723 3,574,400 - 78,667,123
Furniture & Fittings 5,385,671 21,913 - 5,407,584
Equipment 44,477,800 11,072,766 - 55,550,566
Water Sanitation 1,544,384 331,128 - 1,875,512
Computer & Computer Software 10,242,469 768,878 - 11,011,347
Plant & Machinery 208,075,231 14,800,361 - 222,875,592
Other Assets on Grants 121,868,571 40,199,783 - 162,068,354
499,471,552 81,546,563 - 581,018,115
Balance Charged Disposals/Transfers Balance
as at for the during the as at
01.04.08 year year 31.03.09
Depreciation Rs. Rs. Rs. Rs.
Buildings 4,604,047 756,570 - 5,360,617
Motor Vehicles 62,246,719 5,324,481 - 67,571,200
Furniture & Fittings 2,312,662 317,820 - 2,630,482
Equipment 35,020,251 2,783,480 - 37,803,731
Water Sanitation 1,227,579 84,720 - 1,312,299
Computer & Computer Software 9,251,889 370,102 - 9,621,991
Plant & Machinery 89,896,252 15,840,824 - 105,737,076
Other Assets on Grants 25,938,873 4,416,827 - 30,355,700
230,498,272 29,894,824 260,393,096
WRITTEN DOWN VALUE 268,973,280 320,625,019
Assets Acquired on Finance Leases
Cost
Plant & Machinery 8,416,557 - - 8,416,557
Depreciation
8,416,557 - - 8,416,557
Plant & Machinery 3,172,394 631,241 - 3,803,635
3,172,394 631,241 - 3,803,635
WRITTEN DOWN VALUE 5,244,163 4,612,922
Balance Additions Capitalised Balance
as at for the during the as at
01.04.08 Year Year 31.03.09
Rs. Rs. Rs. Rs.
Capital Work-in-Progress 17,705,953 1,477,855 (7,077,077) 12,106,731
TOTAL WRITTEN DOWN VALUE 291,923,396 337,344,672
The assets shown above are those movable assets vested in the Company by gazette notification on the date of formation of the Company (22.6.92) and
all investments in tangible assets by the Company since its formation. The assets taken over by way of estate leases are set out in notes 3 & 4.
Further, the valuation of immovable JEDB estate assets on finance lease (other than leasehold property) and tangible assets other than immature/mature
plantations taken over as at June 22, 1992 is based on net book value as at such date. These values were not available to us by individual asset.
48

Year Ended 31st March 2009
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
TANGIBLE ASSETS OTHER THAN Balance Additions Disposals/Transfers Balance
IMMATURE/MATURE PLANTATIONS as at for the during the as at
01.04.08 year year 31.03.09
Group Rs. Rs. Rs. Rs.
Cost
Buildings 73,334,533 10,777,334 - 84,111,867
Motor Vehicles 75,092,723 3,574,400 - 78,667,123
Furniture & Fittings 5,462,589 21,913 - 5,484,502
Equipment 45,150,731 11,072,766 - 56,223,497
Water Sanitation 1,544,384 331,128 - 1,875,512
Computer & Computer Software 10,619,933 768,878 - 11,388,811
Plant & Machinery 277,106,594 14,800,361 - 291,906,955
Other Assets on Grants 121,868,571 40,199,783 - 162,068,354
610,180,058 81,546,563 - 691,726,621
Balance Charged Disposals/Transfers Balance
as at for the during the as at
01.04.08 year year 31.03.09
Depreciation Rs. Rs. Rs. Rs.
Buildings 6,526,646 1,770,316 - 8,296,962
Motor Vehicles 62,246,719 5,324,481 - 67,571,200
Furniture & Fittings 2,328,045 325,512 - 2,653,557
Equipment 35,090,446 2,867,596 - 37,958,042
Water Sanitation 1,227,579 84,720 - 1,312,299
Computer & Computer Software 9,391,142 445,595 - 9,836,737
Plant & Machinery 99,720,937 21,018,177 - 120,739,114
Other Assets on Grants 25,938,873 4,416,827 - 30,355,700
242,470,386 36,253,224 - 278,723,610
WRITTEN DOWN VALUE 367,709,672 - - 413,003,011
Assets Acquired on Finance Leases
Cost
Plant & Machinery 8,416,557 - - 8,416,557
Depreciation
8,416,557 - - 8,416,557
Plant & Machinery 3,172,394 631,241 - 3,803,635
3,172,394 631,241 - 3,803,635
WRITTEN DOWN VALUE 5,244,163 4,612,922
Balance Additions Disposals/Transfers Balance
as at for the during the as at
01.04.08 year year 31.03.09
Rs. Rs. Rs. Rs.
Capital Work-in-Progress 17,705,952 1,477,855 (7,077,077) 12,106,730
TOTAL WRITTEN DOWN VALUE 390,659,787 429,722,663
49

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31st March 2009
6. IMMATURE/MATURE PLANTATIONS
Immature Plantations Mature Plantations
Tea Rubber Coconut Others Tea Rubber Coconut Others Total
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Cost
As at 01.04.08 51,667,470 198,672,173 31,801,303 29,953,218 97,866,208 454,607,833 517,320 11,711,090 876,796,615
Additions 14,214,550 67,680,587 2,317,020 5,780,633 - - - - 89,992,790
Transfers (17,537,918) (11,830,970) (1,223,382) (172,345) 17,537,918 11,830,970 1,223,382 172,345 -
As at 31.03.09 48,344,102 254,521,790 32,894,941 35,561,506 115,404,126 466,438,803 1,740,702 11,883,435 966,789,405
Depreciation
As at 01.04.08 - - - - 19,857,357 105,920,666 96,691 2,177,954 128,052,668
Charge for the year - - - - 2,924,786 22,922,931 121,246 408,261 26,377,224
As at 31.03.09 - - - - 22,782,143 128,843,597 217,937 2,586,215 154,429,892
Net Book
Value as at
31.03.09 48,344,102 254,521,790 32,894,941 35,561,506 92,621,983 337,595,206 1,522,765 9,297,220 812,359,513
Net Book
Value as at
31.03.08 51,667,470 198,672,173 31,801,303 29,953,218 78,008,851 348,687,167 420,629 9,533,136 748,743,947
Note : These are investments made in immature/mature plantations since the formation of the Company. The assets (including plantations
assets) taken over by way of estate leases are set out in Notes 3 and 4. Further, investments made in immature plantations taken over by
way of these leases are shown in the above note all of which have been transferred to mature plantations as at the Balance Sheet date.
Borrowing costs amounting to Rs. 4,148,234/- incurred on long term loans obtained to meet expenses relating to immature plantations
have been capitalised as part of the cost of the immature plantations.
7. LONG TERM INVESTMENTS
2009 2008
Rs. Rs.
7.1 Investments in Subsidiaries (Hamefa Kegalle (Pvt) Ltd)
Carrying value as at beginning of the year - 2,400,991
Share of loss - -
Restatement of share of loss due to acquisition - 11,599,009
Provision for diminishing in value of investment (14,000,000)
Carrying value as at end of the year - -
7.2 Other Long Term Investment Holding 2009 2008
% Rs. Rs.
Maskeliya Tea Gardens Ceylon Ltd - 10 10
Richard Pieris Natural Forms Ltd 17.01 75,000,000 75,000,000
75,000,010 75,000,010
Total Investment 75,000,010 75,000,010
50

Year Ended 31st March 2009
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Company Group
8. INVENTORIES 2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Input Materials 34,084,999 20,419,088 43,360,781 33,772,976
Growing Crop - Nurseries 4,318,585 3,280,670 4,318,585 3,280,670
Produce Stock 106,657,977 173,680,953 106,657,977 173,680,953
Spares and Consumables 1,311,688 5,338,856 1,311,688 5,338,856
146,373,249 202,719,567 155,649,031 216,073,455
Provision for Slow Moving - - (6,000,000) -
9. TRADE & OTHER RECEIVABLES
Notes to the Financial Statements Contd....
146,373,249 202,719,567 149,649,031 216,073,455
Produce Debtors - Related Parties (9.1) 162,075,865 214,204,847 162,075,865 214,204,847
- Others 45,017,067 58,052,515 45,017,067 58,052,515
Advances & Prepayments 11,083,677 7,218,011 11,083,677 7,218,011
Other Debtors 47,453,134 83,434,943 55,024,753 84,153,221
265,629,743 362,910,316 273,201,362 363,628,594
9.1 Trade Receivables From Related Parties
Richard Pieris Natural Foams Ltd
Relationship
Group Company 192,307,029 178,887,342 192,307,029 178,887,342
Arpico Natural Latex Foam (Pvt) Ltd Group Company 45,256,166 49,512,166 45,256,166 49,512,166
Richard Peiris Export PLC Group Company 6,050,475 18,818,219 6,050,475 18,818,219
Richard Peiris Rubber Products PLC Group Company 425,075 - 425,075 -
Arpico Flexiform Ltd Group Company 1,050,000 - 1,050,000 -
245,088,745 247,217,727 245,088,745 247,217,727
( - ) Provision for Doubtful Receivables (Refer Note 24) (83,012,880) (33,012,880) (83,012,880) (33,012,880)
162,075,865 214,204,847 162,075,865 214,204,847
51

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
10. AMOUNTS DUE FROM RELATED COMPANIES Company Group
2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Relationship
Namunukula Plantations PLC Group Company 495,369 17,540,743 495,369 17,540,743
Maskeliya Tea Gardens Ceylon Ltd Group Company - 34,726 - 34,726
Maskeliya Plantations PLC Group Company 4,077,511 889,801 4,077,511 889,801
Hamefa Kegalle (Pvt) Limited Subsidiary Company 96,243,169 40,499,362 - -
Richard Peiris & Company PLC Group Company 7,968,199 1,681,068 7,968,199 1,681,068
RPC Plantation Management Services (Pvt) Ltd Parent Company 8,055,383 - 8,055,383 -
RPC Management Services (Pvt) Ltd Former Parent Company 4,211,833 2,391,217 4,211,833 2,391,217
( - ) Provision for Doubtful Receivables (54,890,539) - - -
66,160,925 63,036,917 24,808,295 22,537,555
11. SHORT TERM INVESTMENT
Treasury Bills 379,089,550 198,163,262 379,089,550 198,163,262
12. STATED CAPITAL
379,089,550 198,163,262 379,089,550 198,163,262
Issued and Fully Paid Number of Shares
Ordinary Shares Including one golden share
held by the Treasury which has Special rights 25,000,001 25,000,001 25,000,001 25,000,001
Value of Issued and Fully Paid Shares
Ordinary Shares Including one golden share
held by the Treasury which has Special rights 250,000,010 250,000,010 250,000,010 250,000,010
Note : Stated Capital represents the amount paid to the Company in respect of issuing 25,000,001 ordinary shares including one
Golden share which has special rights.
52

Year Ended 31st March 2009
13. INTEREST BEARING LOANS & BORROWINGS
2009 2009 2009 2009 2008 2008
Repayable Repayable Repayable Total Repayable Repayable Repayable
within within after after 2009 within after 2008
1 year 2-5 years 5 year 1 year Total 1 year 1 year Total
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Long Term Loans 13.1 50,584,524 160,911,489 130,255,587 291,167,076 341,751,600 49,448,812 241,078,217 290,527,029
Short Term Loan 13.2 5,789,269 - - - 5,789,269 6,249,958 - 6,249,958
Bank Overdraft - - - - - 1,065,646 - 1,065,646
Company 56,373,793 160,911,489 130,255,587 291,167,076 347,540,869 56,764,416 241,078,217 297,842,633
Taken by Hamefa Kegalle (Pvt) Ltd - - - - -
Long Term Loans - - - - 7,200,000 27,600,000 34,800,000
Bank Overdraft - - - - - 10,254,958 - 10,254,958
Group 56,373,793 160,911,489 130,255,587 291,167,076 347,540,869 74,219,374 268,678,217 342,897,591
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
53

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31st March 2009
13.1. LONG TERM LOANS (Secured) 2009 2009 2009 2009 Terms of
Asian Development Bank Credit Line Repayable Repayable Repayable Total Repayable Payaments
within within after after 2009 2008 Rate of
1 year 2-5 years 5 year 1 year Total Total interest
Rs. Rs. Rs. Rs. Rs. Rs.
NDB 5,510,748 9,643,827 - 9,643,827 15,154,575 20,665,330 16.00% 1 Monthly Installment
@ Rs. 459,270.55 and 119
Disbursement 1 Installments @ Rs. 459,229.55
Received 96/97 commencing from 31.01.2002
NDB 5,825,880 20,534,626 - 20,534,626 26,360,506 32,186,386 11.70% 1 Monthly Installment
Disbursement 2 @ Rs. 485,490 and 119
Received 97/98 Installments @ Rs. 485,490
commencing from 30.11.2003.
NDB 6,333,924 23,983,008 - 23,983,008 30,316,932 36,650,856 11.70% 1 Monthly Installment
Disbursement 3 @ Rs. 527,792 and 119
Field & Prossesing Development Installments\ @ Rs. 527,827
Received 98/99 commencing from 31.12.2003.
Seylan Bank 5,569,680 22,278,720 7,971,830 30,250,550 35,820,230 41,389,910 11.70% 1 Monthly Installment
Disbursement 4 @ Rs. 464,107 and 119
Installments @ Rs. 464,097
commencing from 31.09.2005.
HNB 25,830,000 16,905,000 - 16,905,000 42,735,000 67,020,500 6.89% 1 Monthly Installment
Term Loan @ Rs. 1,332,500 and 47
Installments @ Rs. 2,152,500
commencing from 30.10.2006.
54
LOLC 1,514,292 6,057,168 2,649,967 8,707,135 10,221,427 10,600,000 14.06% 1 Monthly Installment
@ Rs. 126,147 and 83 Installments
@ Rs. 126,191 commencing from
31.01..2009.
NDB/DFCC - 24,366,000 31,947,091 56,313,091 56,313,091 56,313,091 10.99% 1 Month Installment
Disbursement 1 @ Rs. 507,091 and 71 Installments
@ Rs. 786,000 commencing from
30.09..2011.
Disbursement 2 - 10,708,740 14,992,216 25,700,956 25,700,956 25,700,956 10.99% 1 Month Installment
@ Rs. 356,938 and 71 Installments
@ Rs. 356,958 commencing from
31.10..2011.
NDB/ADB - 26,434,400 72,694,483 99,128,883 99,128,883 - 14.06% 1 Month Installment
Disbursement 1 @ Rs. 1,652,033 and 59
Field Development 50,584,524 160,911,489 130,255,587 291,167,076 341,751,600 290,527,029 Installments@ Rs. 1,652,150
13.2 SHORT TERM LOANS commencing from 31.12.2012.
Exotic Horticulture (Pvt.) Ltd 5,789,269 - - - 5,789,269 6,249,958 18.00%
5,789,269 5,789,269 6,249,958

Year Ended 31st March 2009
14. RETIREMENT BENEFIT OBLIGATIONS
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Company Group
2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Balance at the beginning of the year 236,203,443 198,930,638 236,203,443 198,930,638
Add : Charge for the year 34,325,973 57,194,984 34,420,633 57,194,984
Less: Paid during the year (37,052,335) (19,922,179) (37,052,335) (19,922,179)
Balance at the end of the year 233,477,081 236,203,443 233,571,741 236,203,443
The actuarial valuations had been carried out, for retiring gratuity for estate workers and estate staff as at 31st March 2008 and as at 31st March 2007 for
the executives and updated as at 31st March 2009, which amounts to Rs. 224,457,308/- and Rs. 9,019,773/- respectively. If the Company had provided
for gratuity for workers on the basis of 14 days wages and for staff and executive a half month salary for each completed year of service, in line with the
gratuity Act No.12 of 1983 the liability would have been Rs. 302,279,299/-. Hence, there is a contingent liability of Rs. 68,802,218/-- which would crystalise
only if the Company ceases to be a going concern, or the resignation or termination of employees which ever is earliest.
15. DEFERRED INCOME Company Group
2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Deferred Grants and Subsidies
Notes to the Financial Statements Contd....
At the beginning of the year 120,353,071 97,389,928 156,256,786 97,389,928
Add : Grant Received for the year 32,417,846 26,833,876 32,417,846 62,737,591
Less : Amortisation for the year (4,677,969) (3,870,733) (8,894,571) (3,870,733)
At the end of the year 148,092,948 120,353,071 179,780,061 156,256,786
The Company has received funding from the Plantation Housing and Social Welfare Trust and Asian Development Bank for the development of workers
facilities such as re-roofing of line rooms, latrines, water supply and sanitation etc. The amounts spent are included under the relevant classification of
Property, Plant & Equipment and the grant component is reflected under Deferred Grants and Subsidies. Further, rebates were received from Ceylon
Electricity Board on procurement of generators.
55

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31st March 2009
16. NET LIABILITY TO THE LESSOR OF JEDB ESTATES Company Group
2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Repayable after 5 years
Gross liability 491,461,858 507,205,858 491,461,858 507,205,858
Less : finance charges (213,529,591) (224,824,457) (213,529,591) (224,824,457)
Net liability 277,932,267 282,381,401 277,932,267 282,381,401
Repayable after1 year less than 5 years
Gross liability 62,976,000 62,976,000 62,976,000 62,976,000
Less : finance charges (46,180,477) (46,826,636) (46,180,477) (46,826,636)
Net liability 16,795,523 16,149,364 16,795,523 16,149,364
Repayable after1 year 294,727,790 298,530,765 294,727,790 298,530,765
Repayable within1 year
Gross liability 15,744,000 15,744,000 15,744,000 15,744,000
Less : finance charges (11,941,025) (12,086,901) (11,941,025) (12,086,901)
Net liability 3,802,975 3,657,099 3,802,975 3,657,099
Total 298,530,765 302,187,864 298,530,765 302,187,864
The leases of the estates have been amended with effect from 22nd June 1996 to an amount substantially higher than the previous lease rental
of Rs. 500/- per estate per annum. The first rental payable under the revised basis is Rs. 15.744 Mn from 22nd June 1996 to 21st June 1997. This
amount is to be inflated annually by the Gross Domestic Product (GDP) deflator and is in the form of a contingent rental.
In accordance with the agreement between the Company and Ministry of Plantations Industries, the Secretary to the Ministry of Plantations
Industries has agreed to freeze the lease rental based on the applicable lease rental of the year 1998/99 (GDP of 8.5% ) which is determined on
the extent of Rubber. The contingent rental charged in the Income Statement based on the above agreement will be valid for the period from
22nd June 2002 to 21st June 2008 which amounted to Rs. 5,013,723/-.
The above relief was granted to the company on the basis of following conditions.
1. The Company undertakes to cap the management fee for a period of 05 years from
the year commencing 01st April 2003.
2. The Company undertakes to comply with all laws, by - laws, statutory provisions and other
regulations of the Government of Sri Lanka.
3. The Company undertakes to diversify the crops to ensure the optimum usage of land.
4. The Company undertakes to invest the difference between the frozen lease rental
and the actual amount payable for capital expenditure.
5. The Company agrees to settle the outstanding payments according to an agreed time
schedule with the Treasury.
If the Company defaults the payment of lease rental or violates any of the terms and conditions of this agreement, then in such case the Secretary
reserves the right to withdraw the loan and grant assistance which is provided to the Company under the Plantation Development Project after
holding an inquiry. In the event of there being a default in the lease rental, the company would have to revert to the previous agreement.The
above agreement has expired on 21st June 2008 and the Ministry of Plantations Industries is in the process of finalising a new agreement.Hence,
the management fee is computed and paid on the basis of previous agreement.
56

Year Ended 31st March 2009
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Company Group
17. TRADE & OTHER PAYABLES
2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Trade Creditors 90,853,802 52,288,956 92,975,757 52,288,956
Others 35,096,337 97,220,716 40,124,700 101,326,535
18. DIVIDENDS PAYABLE
125,950,139 149,509,670 133,100,457 153,615,491
Unclaimed Dividend Total
Company Group Company Group
2009 2008 2009 2008 2009 2008 2009 2008
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Payable to - Related Parties - - - - - - - -
- Others 740,073 4,223,948 740,073 4,223,948 740,073 4,223,948 740,073 4,223,948
740,073 4,223,948 740,073 4,223,948 740,073 4,223,948 740,073 4,223,948
19. DIVIDENDS Company Group
2009 2008 2009 2008
Ordinary Shares Rs. Rs. Rs. Rs.
Interim dividend (2008 - Rs 3/- per share) - 75,000,000 - 75,000,000
Final Proposed Rs 1/- per share (2008 - Rs 2/- per share ) 25,000,000 50,000,000 25,000,000 50,000,000
25,000,000 125,000,000 25,000,000 125,000,000
Company Group
2009 2008 2009 2008
20. AMOUNTS DUE TO RELATED COMPANIES Relationship Rs. Rs. Rs. Rs.
R.P.C.Timber Line (Pvt) Ltd Group Company - - 3,267,471 162,826
R.P.C. Management Services (Pvt) Ltd Former Parent Company - - - 886,602
Namunukula Plantations PLC Group Company - - 1,103,558 813,061
Maskeliya Plantations PLC Group Company - - 1,098,701 1,098,701
R.P.C. Logistics (Pvt) Ltd Group Company 135,544 68,500 346,937 279,893
Richard Peiris Group Services (Pvt) Ltd. Group Company 66,667 10,806 66,667 10,806
Richard Peiris & Co PLC Group Company - - 4,721,458 1,706,952
Maskeliya Tea Gardens Ceylon Ltd Group Company 103,846 - 103,846 -
57
306,057 79,306 10,708,638 4,958,841

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31st March 2009
21 REVENUE
2009 2008
21.1 Summary
Rs. Rs.
Sale of Goods
Tea 646,719,008 763,584,076
Rubber 1,210,429,744 1,335,361,845
Coconut 31,076,926 27,180,242
Other Crops 1,215,500 1,027,553
Sale of Rubber Trees 38,320,505 35,876,731
1,927,761,683 2,163,030,447
21.2 Geographical Segment - Revenue
Local 1,796,853,723 2,025,972,563
Export - Vietnam 125,045,006 137,057,884
Colombia 5,862,955
1,927,761,684 2,163,030,447
21.3 Segment Information Tea Rubber Coconut Other Crops Sale of Rubber Trees Total
Company 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Revenue 646,719,008 763,584,076 1,210,429,744 1,335,361,845 31,076,926 27,180,242 1,215,500 1,027,553 38,320,505 35,876,731 1,927,761,683 2,163,030,447
Revenue
Expenditure (603,617,989) (651,180,853) (781,027,892) (779,092,830) (16,601,115) (12,657,889) (476,381) (429,931) - - (1,401,723,377) (1,443,361,503)
Depreciation /
Amortization (24,507,747) (22,888,871) (46,041,108) (40,497,714) (529,508) (860,580) (87,792) (98,706) - - (71,166,155) (64,345,871)
Other Non Cash
Expenses -
Gratuity (14,768,121) (22,214,253) (18,182,317) (33,702,631) (1,375,534) (1,278,100) - - - - (34,325,972) (57,194,984)
Segment Results 3,825,151 67,300,099 365,178,427 482,068,670 12,570,769 12,383,673 651,327 498,916 38,320,505 35,876,731 420,546,179 598,128,089
58
Other Income 61,148,752 37,790,679
Unallocated Expenses (58,509,907) (46,525,666)
Management Fees (71,748,914) (107,409,173)
Finance Cost (55,387,507) (41,205,895)
Amortaisation of Negative Goodwill - -
Provision for Diminishing in Value of Investment - (2,401,991)
Provision for Bad & Doudtfull Debts (104,890,539) -
Profit for the year 191,158,064 438,376,043

Year Ended 31st March 2009
Tea Rubber Other Crops Unallocated
Segment Assets 2009 2008 2009 2008 2009 2008 2009 2008
Non Current Assets Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Cost 635,182,910 538,535,468 1,426,295,792 1,369,876,945 82,080,589 70,123,278 106,307,027 100,092,996 2,249,866,318 2,078,628,687
Accumulated Depreciation /
Amortization (211,999,946) (175,477,256) (451,649,511) (417,623,345) (5,404,948) (4,787,648) (15,813,481) (14,202,548) (684,867,886) (612,090,797)
Current Assets 318,616,052 290,739,280 349,858,478 319,248,203 12,220,120 11,150,942 265,854,142 242,593,683 946,548,792 871,614,265
741,799,016 653,797,492 1,324,504,759 1,271,501,803 88,895,761 76,486,572 356,347,688 328,484,131
Total Assets 2,511,547,224 2,338,152,155
Segment Liabilities
Non Current Liabilities 213,932,171 198,165,982 423,547,350 392,333,120 20,992,685 19,445,585 308,992,688 286,220,810 967,464,894 896,165,497
Current Liabilities 43,517,950 47,372,922 86,157,740 93,789,893 4,270,319 4,648,599 62,855,102 68,423,025 196,801,111 222,116,596
257,450,121 245,538,904 509,705,090 486,123,013 25,263,004 24,094,184 371,847,790 354,643,835
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Total Liability 1,164,266,005 1,118,282,093
59
Segment Capital Expenditure
Cost 55,009,504 35,668,317 101,504,357 78,051,429 8,097,654 4,412,572 1,328,617 1,077,250
Total Capital Expenditure 165,940,132 119,209,568

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31st March 2009
Segment Information Tea Rubber Coconut Other Crops Sale of Rubber Trees Total
Group 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Revenue 646,719,008 763,584,076 1,210,429,744 1,335,361,845 31,076,926 27,180,242 16,175,775 1,027,553 38,320,506 35,876,731 1,942,721,959 2,163,030,446
Revenue
Expenditure (603,617,989) (651,180,853) (781,027,892) (779,092,830) (16,601,115) (12,657,889) (18,506,379) (429,931) - (1,419,753,375) (1,443,361,503)
Depreciation /
Amortization (24,507,747) (22,888,871) (46,041,108) (40,497,714) (529,508) (860,580) (6,446,191) (98,706) - - (77,524,554) (64,345,871)
Other Non Cash
Expenses - Gratuity (14,768,121) (22,214,253) (18,182,317) (33,702,631) (1,375,534) (1,278,100) - - - - (34,325,972) (57,194,984)
Segment Results 3,825,151 67,300,099 365,178,427 482,068,669 12,570,769 12,383,673 (8,776,795) 498,916 38,320,506 35,876,731 411,118,058 598,128,088
Other Operating Income 65,365,355 36,860,730
Unallocated Expenses (64,885,833) (46,525,665)
Management Fees (71,748,914) (107,409,173)
Finance Cost (61,684,370) (41,205,895)
Goodwill Written off - (8,154,013)
Provision for Bad & Doubtful Debts (59,000,000) -
Operating Profit of the Company 219,164,296 431,694,072
Tea Rubber Other Crops Unallocated
Segment Assets 2009 2008 2009 2008 2009 2008 2009 2008
Non Current Assets Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
60
Cost 635,182,910 538,514,713 1,426,295,792 1,369,876,945 82,080,589 70,123,278 205,043,418 210,801,503 2,348,602,709 2,189,316,438
Accumulated Depreciation / Amortization (211,999,946) (175,477,256) (451,649,511) (417,623,345) (5,404,948) (4,787,648) (22,171,880) (26,174,663) (691,226,285) (624,062,912)
Current Assets 318,616,052 290,739,280 349,858,478 319,248,203 12,220,120 11,150,943 240,867,611 227,119,350 921,562,261 848,257,775
741,799,016 653,776,737 1,324,504,759 1,271,501,802 88,895,761 76,486,573 423,739,149 411,746,190
Total Assets 2,578,938,685 2,413,511,301
Segment Liabilities
Non Current Liabilities 213,932,171 198,165,982 423,547,350 392,333,120 20,992,685 19,445,585 340,774,461 349,724,525 999,246,667 959,669,211
Current Liabilities 43,517,950 47,372,922 86,157,740 93,789,893 4,270,319 4,648,599 80,408,000 94,863,339 214,354,009 248,556,910
257,450,121 245,538,903 509,705,090 486,123,013 25,263,004 24,094,183 421,182,461 444,587,864
Total Liability 1,213,600,676 1,208,226,121
Segment Capital Expenditure
Cost 55,009,504 35,668,317 101,504,357 78,051,429 8,097,654 4,412,572 1,328,617 2,836,936
Total Capital Expenditure 165,940,132 120,969,254

Year Ended 31st March 2009
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Company Group
22. OTHER INCOME 2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Interest Income - Related Parties 2,246,805 8,118,851 2,246,805 8,118,851
- Others 36,475,621 1,124,206 36,475,621 1,124,206
Amortisation of Capital Grants 4,677,969 3,870,733 8,894,572 3,870,733
Others 17,748,357 23,776,889 17,748,357 22,846,940
Sale of PPE - 900,000 - 900,000
61,148,752 37,790,679 65,365,355 36,860,730
23. FINANCE COST Company Group
2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Overdraft Interest 2,614,503 5,556,209 4,726,115 5,556,209
Interest paid to related parties - - 74,526 -
Interest on Government Lease 12,086,901 12,227,774 12,086,901 17,241,502
Variable Lease Rental 5,013,724 5,013,728 5,013,724 -
Term Loan Interest 39,820,613 22,946,873 43,931,338 22,453,176
Finance Lease Interest - 42,426 - 536,123
59,535,741 45,787,010 65,832,604 45,787,010
Less : Amount Capitalised (4,148,234) (4,581,115) (4,148,234) (4,581,115)
24. PROVISION FOR DOUBTFUL RECEIVABLES
55,387,507 41,205,895 61,684,370 41,205,895
This represents provision made against amount receivable from its subsidiary company Hamefa Kegalle (Pvt) Ltd Rs. 54,890,539/- which closed operations
in April 2009, and Richard Pieris Natural Foams Ltd Rs. 50,000,000/-
25. PROFIT BEFORE TAXATION IS STATED AFTER CHARGING
Auditor’s remuneration 1,415,000 1,415,000 1,492,000 1,492,000
Depreciation / Amortization 72,777,088 65,916,941 79,135,487 72,256,827
Directors’ Emoluments 3,930,022 3,320,224 3,930,022 2,418,830
Defined benefit plan cost 34,325,973 55,333,399 34,420,633 55,333,399
Defined Contribution Plans - Provident Funds & ETF 64,818,349 66,733,485 65,158,135 67,073,271
Others - Staff Cost 605,423,204 657,887,765 614,080,451 666,545,392
61

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31st March 2009
26. INCOME TAX EXPENSES
The Company is liable for income tax at the rate of 35% on manufacture & exempt on profit from agriculture. The carried forward tax losses of the
Company as at 31st March 2009, amounts to Rs. 372,784,044/- (provisional) (2008 - Rs. 393,613,650/-)
Company Group
Current Tax Expenses 2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Current Income Tax Expenses 13,746,909 10,778,759 13,746,909 10,778,759
13,746,909 10,778,759 13,746,909 10,778,759
26.1 Reconciliation between Current Tax (Expense) / Income and the product of
Accounting Profit Multiplied by the Statutory Tax Rate of (35%) as follows.
Company Group
2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Accounting Profit / (Loss) Before Tax and Provision for
Investment 191,158,064 440,778,034 191,158,065 440,778,034
Tax effect on Accounting Profit 66,905,323 154,272,312 66,905,323 154,272,312
Tax effect on Aggregate Disallowed items 79,877,840 49,473,977 79,877,840 49,473,977
Tax effect on Aggregate Allowable items (78,999,406) (50,872,506) (78,999,406) (50,872,506)
Tax effect on Exempt Income (Agriculture) (60,507,000) (135,604,385) (60,507,000) (135,604,385)
Business Profit / (Loss) 7,276,757 17,269,398 7,276,757 17,269,398
Tax effect on Interest Income - Gross 13,552,849 3,235,070 13,552,849 3,235,070
Taxable Profit / (Loss) 20,829,606 20,504,468 20,829,606 20,504,468
Tax Losses Brought Forward & Utilized (7,290,362) (7,176,564) (7,290,362) (7,176,564)
Taxable Profit 13,539,244 13,327,904 13,539,244 13,327,904
SRL 207,665 133,279 207,665 133,279
Less Over provision previous year - (2,573,350) - (2,573,350)
13,746,909 10,887,833 13,746,909 10,887,833
Provided in the Accounts 13,746,909 10,778,759 13,746,909 10,778,759
Losses Carried Forward 372,784,044 393,613,650 372,784,044 393,613,650
26.2 Income Tax Payable
Income Tax Payable 8,611,710 6,179,460 8,611,710 6,179,460
ESC Payable 880,774 1,449,992 880,774 1,449,992
SRL Payable 135,589 252,705 135,589 252,705
9,628,073 7,882,157 9,628,073 7,882,157
27. EARNINGS PER SHARE
27.1 The basic earnings per share has been calculated based on after tax profit for the year divided by the weighted average number of ordinary shares
outstanding during the period.
27.2 The following reflects the income and share data used in the basic earnings per share computations.
Company Group
2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Amounts used as the Numerator :
Net profit / (loss) applicable to ordinary share holders 177,411,155 427,597,283 205,417,387 420,915,312
177,411,155 427,597,283 205,417,387 420,915,312
Amounts used as the Denominator :
Weighted average number of ordinary shares in issue 25,000,001 25,000,001 25,000,001 25,000,001
25,000,001 25,000,001 25,000,001 25,000,001
62

Year Ended 31st March 2009
28. SECURITIES PLEDGED
The following assets have been pledged as securities for liabilities.
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Name of Bank Loan Security Nature of Carrying Amount Pledged
Facility Liability 2009 2008
Rs. Rs. Rs.
Bank of Ceylon 35Mn Primary mortgage over leasehold rights of
Gampaha Estate. Overdraft 71,084,416 67,388,179
Hatton National Bank 50Mn Primary mortgage over leasehold rights of
Luckyland Estate. Overdraft 117,565,327 112,058,500
ADB / NDB 526.7Mn Corporate guarantee by RP&C0. for
Rs. 33Mn. Primary and secondary
mortgage over leasehold rights of
Atale, Etana, Doteloya, Kirklees,
Pallegama, Parambe, Weniwella and
Yataderiya estates. Term Loan 757,342,303 710,757,205
ADB / Seylan 55.7Mn Primary mortgage over leasehold
rights of Eadalla Estate. Term Loan 106,245,840 100,245,746
Hatton National Bank 100Mn Board Resolution Term Loan - -
LOLC 10.6Mn Pleadge over 01 no. NANTA
7192T seiries colour Term Loan 13,412,667 15,328,762
One of the Land belongs to Company’s estate secured to a financial institution on behalf of Hamefa Kegalle (Pvt) Ltd in order to obtain financial facilities
to Hamefa Kegalle (Pvt) Ltd.
29. CAPITAL COMMITMENTS
Followings are the capital commitments Company Group
as at the Balance Sheet date 2009 2008 2009 2008
Rs. Rs. Rs. Rs.
Approved by the Board & Contracted for Nil Nil Nil Nil
Approved by the Board & not Contracted for 126,728,100 146,513,500 126,728,100 146,513,500
126,728,100 146,513,500 126,728,100 146,513,500
30. CONTINGENT LIABILITIES
No known contingent liabilities exist as at the Balance Sheet date, other than those disclosed in Notes 14 & 16 to the Financial Statements.
31. POST BALANCE SHEET EVENTS
Subsequent to the Balance Sheet date, Hamefa Kegalle (Pvt) Ltd discontinued commercial operations and steps are being taken to dispose the
assets.
63

Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31st March 2009
32. DIRECTORS’ INTEREST IN CONTRACTS WITH THE COMPANY
Company Name of Relationship Nature of Amount
Director Transaction Charged/(Credited)
2009 2008
Rs. Rs.
RPC Management Services Dr. S.Yaddehige Former Parent Managing Agent’s Fee 73,094,965 108,207,487
(Pvt) Ltd Mr. J.H.P. Ratnayeke Company Short Term Loan Received - (40,000,000)
Mr. P.D. Samarasinghe Short term loan Interest - 1,509,041
Mr. R.L.Kumararatne
Maskeliya Plantations PLC Dr. S.Yaddehige Group Company Short Term Loan Received (50,000,000) (45,000,000)
Mr. J.H.P. Ratnayeke Short Term Interest Paid - 41,206
Mr. P.D. Samarasinghe Short Term Interest Received (3,300,000) (2,521,712)
Mr. R.L.Kumararatne Short Term Loan Paid 50,000,000 45,000,000
Namunukula Plantations PLC Dr. S.Yaddehige Group Company Loan Paid - 12,000,000
Mr. J.H.P. Ratnayeke Loan Interest Received (227,803) (4,198,403)
Mr. P.D. Samarasinghe Loan Received (8,883,137) (24,716,863)
Mr. R.L.Kumararatne
Asian Alliance Insuarance Co. PLC Dr. S.Yaddehige Affiliate Company Insurance Premium 8,795,572 8,163,102
Mr. J.H.P. Ratnayeke
Mr. L.N. De S. Wijeyeratne
Asia Siyaka Commodities (Pvt) Ltd Dr. S.Yaddehige Affiliate Company Packing Materials 6,111,100 6,424,080
Mr. J.H.P. Ratnayeke Lot Money 188,936 136,519
Mr. R.L.Kumararatne Brokerage 5,117,478 5,425,817
Store Rent 2,731,469 2,409,309
Tea Board Charges 24,100 42,900
Richard Pieris Group Services Mr. J.H.P. Ratnayeke Group Company Secretarial Fees 200,000 200,000
(Pvt) Ltd
R.P.C Logistics (Pvt) Ltd Dr. S.Yaddehige Group Company Freight Charges 2,150,714 1,906,989
Mr. J.H.P. Ratnayeke
Mr. P.D. Samarasinghe
Richard Pieris Tyre Co.Ltd Dr. S.Yaddehige Group Company Purchase of Tyres 1,789,796 1,184,319
Mr. J.H.P. Ratnayeke
Mr. P.D. Samarasinghe
64

Year Ended 31st March 2009
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Company Name of Relationship Nature of Amount
Director Transaction Charged/(Credited)
2009 2008
Rs. Rs.
Richard Pieris and Company PLC Dr. S. Yaddehige Ultimate Short Term Loan Paid - 195,000,000
Mr. J.H.P. Ratnayeke Parent Company Loan Interest Received - (1,030,205)
Mr. P.D. Samarasinghe Short Term Loan Received - (195,000,000)
Rent Charges 1,428,880 1,555,548
Paul Ratnayeke Associates Mr. J.H.P. Ratnayeke Affiliate Company Professional Fees 116,569 144,915
RPC Global Travels (Pvt) Ltd Dr. S. Yaddehige
Mr. J.H.P. Ratnayeke
Mr. P.D. Samarasinghe
Group Company Cost of Air Tickets 2,108,966 1,162,546
Hamefa Kegalle (Pvt) Ltd Dr. S.Yaddehige Group Company Loan Paid 54,356,499 6,124,669
Mr. J.H.P. Ratnayeke Lease Rental Received (688,656) (708,604)
Mr. P.D. Samarasinghe Interest Received - (3,263,756)
Loan Received - (8,000,000)
Sale of Rubber Logs 2,122,500 9,390,784
Provision made against
amount receivable from
54,890,539 -
National Development Bank PLC Dr. S. Yaddehige Affiliate Company Term Loan Capital Paid 17,670,559 17,670,559
Term Loan Interest Paid 24,128,977 15,096,118
Commitment Fee Paid 189,139 845,834
Term Loan Received (99,128,883) (82,014,047)
Legal Fee - 217,925
Front End Fee Paid 2,990,000 -
Exotic Horticulture (Pvt) Ltd Dr. S. Yaddehige Group Company Short Term Loan (4,500,000) (9,500,000)
Mr. J.H.P. Ratnayeke Loan Repaid 4,679,377 10,054,129
Mr. P.D. Samarasinghe Loan Interest paid 1,434,861 1,398,228
Lease Rental Received (281,311) (281,311)
Richard Pieris Natural Forms Ltd Mr. P.D. Samarasinghe Group Company Sale of Rubber 368,784,734 479,593,448
Mr. J.H.P. Ratnayeke Investment in Ordinary
Mr. S.S. Poholiyadde Shares - 75,000,000
Provision made against amount
receivable from
50,000,000 -
Arpico Flexifoam (Pvt) Ltd Mr. P.D. Samarasinghe
Mr. J.H.P. Ratnayeke
Group Company Sale of Rubber 9,564,900 9,143,100
Richard Pieris Exports PLC Dr. S. Yaddehige
Mr. P.D. Samarasinghe
Mr. J.H.P. Ratnayeke
Group Company Sale of Rubber 97,566,632 84,622,995
Arpico Natural Latex Forms (Pvt) Ltd Mr. P.D. Samarasinghe Group Company Purchase of Latex Tanks 4,256,000 -
Provision made against amount
receivable from
33,012,880
RPC Plantation Management Services Dr. S. Yaddehige Immediate Managing Agent’s Fee (852,414) -
(Pvt) Ltd Mr. J.H.P. Ratnayeke
Mr. P.D. Samarasinghe
Mr. R.L.Kumararatne
Parent Company
There are no related party transactions other than those disclosed in Notes 7, 9.1, 10, 13, 20, 22, 23, 24, 28 & 32 to the Financial Statements.
65

Ten Year Summary
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Year Ended 31/3/09 31/3/08 31/3/07 31/3/06 31/3/05 31/3/04 31/3/03 31/3/02 31/3/01 31/3/00
Rs ‘000
Turnover 1,927,762 2,163,030 1,819,020 1,513,578 1,294,220 1,112,598 850,368 693,832 715,468 608,547
Operating Profit before Management Fee 423,185 589,392 480,736 333,147 228,324 189,315 97,584 10,861 45,176 74,479
Profit before Interest, Tax and
Extraordinary Adjustments 351,436 481,984 393,599 250,466 173,789 127,866 60,695 (16,545) 17,874 52,606
Profit/ (Loss) after Tax 177,411 427,597 311,323 191,447 125,217 80,656 (69,489) (56,170) 5,351 38,893
Dividends 25,000 125,000 75,000 62,500 37,500 37,500 - - 12,500 18,750
Fixed Assets 1,564,998 1,466,538 1,333,664 1,295,555 1,224,646 1,193,426 1,841,541 1,151,144 1,126,438 1,048,945
Investments 80,298 75,000 2,401 8,709 12,828 12,908 - 257,543 238,075 211,662
Current Assets 946,549 871,614 674,825 516,227 350,715 231,085 189,072 156,799 161,192 165,186
Current Liabilities 196,801 222,116 269,562 422,592 310,681 248,562 245,721 359,843 213,492 157,007
Shareholders Funds 1,347,281 1,219,870 942,273 692,118 538,171 450,454 369,798 439,287 495,457 502,606
Stated Capital 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000
Reserves 1,097,281 969,870 692,273 442,118 288,171 200,454 119,798 189,287 245,457 252,606
Capital Expenditure 165,940 119,209 94,448 107,168 69,958 61,228 73,540 79,631 111,497 99,737
Current Ratio 4.81 3.92 2.50 1.22 1.13 0.93 0.77 0.44 0.76 1.05
Debt Equity Ratio 0.21 0.19 0.25 0.38 0.41 0.44 0.49 0.52 0.52 0.54
Interest Cover 5.90 10.53 5.65 4.01 2.96 2.10 0.98 0.96 0.96 1.55
Equity /Asset Ratio 0.54 0.52 0.47 0.38 0.34 0.31 0.27 0.28 0.32 0.35
Earnings per Share 7.10 17.10 12.45 7.66 5.01 3.23 (2.78) (2.25) 0.21 1.55
Market Price of a Share 19.00 60.00 42.00 40.00 22.00 13.25 10.50 8.50 8.50 14.00
Price Earning Ratio 3 3.51 3.37 5.22 4.39 4.10 (3.78) 39.71 9.03 7.23
Dividend Cover 7.09 3.42 4.15 3.06 3.34 2.15 n/a 0 0.43 2.07
Rubber Production (kg ‘000) 5,102 5,436 5,375 5,688 5,486 5736 5378 5,434 5,295 4,930
Tea Production (kg ‘000) 2,492 2,797 3,126 3,422 3,021 3034 2568 2,596 2,682 2,618
Coconuts (nuts ‘000) 1,610 1,472 1,788 1,406 1,230 1392 1243 1,381 1,814 1,514
1600
1400
1200
1000
800
600
400
200
0
Shareholders Funds
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Shareholders Funds
66
Funding
Assets
Assets & Funding
0% 20% 40% 60% 80% 100% 120%
Inflow Outflow
Current Liabilities
Land
Deferred Income
Other Fixed Assets
Long Term Liabilities
Investments
Shareholder's Funds
Current Assets

1. Stock Exchange
Investor Information
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
The issued Ordinary Share of Kegalle Plantations PLC are listed with Colombo Stock Exchange of Sri Lanka. The Audited Financials
of the Company for the year ended 31st March, 2009 have been submitted to the Colombo Stock Exchange.
2. Distribution of Shareholders
2009 2009 2008
No of Shares Held No of Share No of % Holdings % Holdings
Holders Shares
1 - 1000 8,975 2,002,604 8.01% 8.00%
1001 - 5000 180 502,288 2.01% 1.76%
5001 - 10000 42 319,902 1.28% 1.45%
10001 - 50000 53 1,087,407 4.35% 5.06%
50001 - 100000 3 208,800 0.84% 1.79%
100001 - 500000 11 1,997,800 7.99% 4.25%
500001 - 1000000 1 571,900 2.29% 0.00%
1000001 - & above 2 18,309,300 73.24% 77.71%
Total 9267 25,000,001 100.00% 100.00%
Resident 9,231 22,725,878 90.90% 92.10%
Non Resident 36 2,274,123 9.10% 7.90%
Total 9,267 25,000,001 100.00% 100.00%
Individuals 9,176 3,800,508 15.20% 15.53%
Company 91 21,199,493 84.80% 84.47%
Total 9,267 25,000,001 100.00% 100.00%
Related Parties 1 17,015,100 68.06% 68.06%
General Public including Employees 9,266 7,984,901 31.94% 31.94%
Total 9,267 25,000,001 100.00% 100.00%
Public Holding: The percentage of shares held by the public is 25% of the issued Share Capital of the Company.
3. Dividends
Final dividend of Rs. 1/- per share has been proposed (2008 - Interim Rs. 3/-, Final Rs. 2/-)
4. The Golden Shareholder
The Golden Share of Rs.10/- is currently held by the Secretary to the Treasury and should be owned either directly by the
Government of Sri Lanka or by a 100% Government owned public company. In addition to the rights of the normal ordinary
shareholder, the Golden Shareholder has the following rights.
1) The concurrence of the Golden Shareholder will be required for the Company to sublease any of the estate land leased/to be
leased to the Company by the Janatha Estate Development Board/Sri Lanka State Plantations.
2) The concurrence of the Golden Shareholder will be required to amend any clause in the article of association of the Company
which grants special rights to the Golden Shareholder.
3) The Golden Shareholder or his nominee will have the right to examine the books and counts of the Company at any time with
two weeks of written notice.
4) The Company will be required to be submit a detailed quarterly accounts report to the Golden Shareholder in a specified
format within 60 days of the end of each quarter. Additional information relating to the Company in a specified format must
be submitted to the Golden Shareholder within 90 days of the end of each financial year.
5) The Golden Shareholder can request the Board of Directors of the Company to meet with him/his Nominee, once in every
quarter to discuss issues related to the Company’s operation of interest to the Government.
67

Investor Information Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
5. Share Information
6. Twenty Largest Shareholders
Largest Sharehloders As at 31st March 2009
2009 2008
Highest( 05th May 2008) 69.5 64.5
Lowest(30th March 2009) 19 43
At the Year End (31st March 2009) 19 60
Earnings per Share 7.10 17.10
Net Assets per Share 53.89 48.79
Dividends per Share 1.00 5.00
Number of Shares Traded 2,239,400 4,269,800
Number of Trades 195 2,729
2009 2008
No of Shares % No of Shares %
RPC Plantation Management Services (Pvt.) Ltd 17,015,100 68.06% 17,015,100 68.06%
HSBC Intl Nominees Ltd 1,294,200 5.18%
Freudenberg Shipping Agencies (Pvt) Ltd 571,900 2.29% 1,118,100 4.47%
Bank of New York 368,800 1.48%
J B Cocoshel (Pvt) Ltd 336,100 1.34% 104,000 0.42%
Mrs.N.Muljie 207,000 0.83% 207,000 0.83%
HSBC International Nominees Ltd 205,000 0.82%
Mr.A.K.Kumarasena 160,300 0.64% 65,100 0.26%
H Don Carolis & Sons Ltd 140,000 0.56% 140,000 0.56%
Cocoshell Activated Carbon Company Ltd 136,800 0.55% 99,300 0.40%
Waldock Mackenize Ltd 125,000 0.50% 120,100 0.48%
Galleon International Master Fund SPC Ltd. 109,100 0.44% 176,900 0.71%
Mrs.P.N.Bhatt 107,700 0.43% 107,700 0.43%
Tranz Domination PLC 102,200 0.41% 0.25%
Mr.A.W.Edwards 77,000 0.31% 62,000
Alliance Finance Company PLC 68,300 0.27%
Fergasam Garment Industries (Pvt) Ltd 63,500 0.25% 63,500 0.25%
Phoenix Venture Limited 50,000 0.20% 70,000 0.28%
Mount Lavinia Hotel (1975) Ltd 40,000 0.16%
Mr. L L Samarasinghe 38,500 0.15%
Sub Total 21,216,300 85.00% 19,344,811 77.38%
Balance held by 9,247 shareholders
(2008/09 - 9,129 shareholders) 3,783,701 15.00% 5,655,190 22.62%
Total Shares 25,000,001 100.00% 25,000,001 100.00%
7. Exchange Rates –US $ (selling)
2009 2008 2007 2006
As At 31st March (Rs.) 115.50 107.75 109.25 103.43
68
Index Value %
120%
100%
80%
60%
40%
20%
KPL Price Index vs Sector Index
KPL Index Sector Index
April May June July Aug Sept Oct Nov Dec Jan Feb Mar
Month

Definitions
Capital Employed
The sum of Shareholders’ Funds, Long Term & Short Term Interest
bearing Borrowings.
Dividend Cover
Profits after tax divided by Dividends.
Equity/Assets Ratio
Shareholders Funds divided by Long Term Assets plus Current
Assets.
Earnings Per Share
Profit after Tax divided by weighted average number of Ordinary
Shares outstanding during the period.
Gearing
Long Term Interest bearing Borrowings/Liabilities as a percentage of
Shareholders’ Funds plus Long Term Interest bearing Borrowings/
Liabilities.
Interest Cover
Profit before Tax plus Interest Charges divided by Interest Charges,
including Interest Capitalized.
Net Assets
Sum of Fixed Assets and Current Assets less total Liabilities.
Net price Per Share
Net Assets at the end of period divided by the number of Ordinary
Shares issued.
Price Earning Ratio
Market price of a share divided by Earnings per Share.
Related Parties
Parties who could control or significantly influence the financial
and operating policies of the Company.
Return on Average Equity
Net income expressed as a percentage of Average Shareholders’
Funds.
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
69
Return on Capital Employed
Profit after Tax plus Interest on Loans divided by the Equity Funds,
Long Term Loans and Short Term Loans.
General Reserve
Reserve available for distribution and investment.
RSS-1
Ribbed Smoked Sheet - Grade 1
NSA
Net Sales Average per kilo.
Shareholders’ Funds
Funds attributable to Shareholders which consist of Stated Capital,
Reserves and Retained Profit.
SLAS
Sri Lanka Accounting Standards.
UITF
Urgent Issues Task Force of the Institute of Chartered
Accountants.
Value Addition
The quantum of wealth generated by the activities of the Company
and its application.
Yield ( YPH)
Average yearly output of produce from a hectare of plantation.

Notice of Meeting
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
NOTICE IS HEREBY GIVEN that the Sixteenth (16th) Annual General Meeting of Kegalle Plantations PLC will be held at the Registered
Office, No. 310, High Level Road, Nawinna, Maharagama on Tuesday, 28th July 2009 at 2.00 p.m. and the business to be brought before
the meeting will be as follows;
1. To consider the Report of the Directors and the Statement of Accounts for the year ended 31st March 2009 with
the Report of the Auditors thereon.
2. To declare a dividend as recommended by the Directors.
3. To re-elect Mr. Sunil Somindranath Poholiyadde, who retires by rotation in terms of Article 92 at the Annual
General Meeting, a Director
4. To re-elect Mr. Pravir Dhanoush Samarasinge, who retires by rotation in terms of Article 92 at the Annual General
Meeting, a Director
5. To re-appoint Messrs. Ernst & Young, Chartered Accountants as Auditors of the Company and to authorize the
Directors to determine their remuneration.
6. To authorize the Directors to determine contributions to charities
7. To consider any other business of which due notice has been given.
By Order of the Board
(Sgd.)
Richard Pieris Group Services (Private) Limited
Secretaries
No. 310, High Level Road, Nawinna, Maharagama
9th June 2009
Note:
a) A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of
him/her.
b) A proxy need not be a member of the Company. The form of proxy will be found inserted in the Annual Report
c) The completed form of proxy should be deposited at No. 310, High Level Road, Nawinna, Maharagama., not less
than 48 hours before the time appointed for the holding of the meeting.
70

K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
I/We* (in block letters) .……………..………………………………….……………..……… of ….…………………………
….………………………………………...............................................................................................................................................
.......………………………… being a member /members of the KEGALLE PLANTATIONS PLC, hereby appoint …………………
………………………….…….……………………………………………………………… of …………………………
……………………….…………………………………………………………………. whom failing DR. SENA YADDEHIGE
whom failing JAMES HENRY PAUL RATNAYEKE whom failing LALIT NIHAL DE SILVA WIJEYERATNE whom failing SUNIL SOMINDRANATH
POHOLIYADDE whom failing RAVINDRA LALITH KUMARARATNE whom failing PRAVIR DHANOUSH SAMARASINGHE whom failing DR.
ASOKA NUGAWELA* as my/our proxy to represent me/us and to vote on my/our behalf at the 16th ANNUAL GENERAL MEETING of the
Company to be held on 28th July 2009 and any adjournment thereof, and at every poll which may be taken in consequence thereof to
vote:-
1. To consider the Report of the Directors and the Statement of Accounts for the year
ended 31st March 2009 with the Report of the Auditors thereon.
2. To declare a dividend as recommended by the Directors.
3. To re-elect Mr. Sunil Somindranath Poholiyadde, who retires by rotation in terms of
Article 92 at the Annual General Meeting, a Director
4. To re-elect Mr. Pravir Dhanoush Samarasinghe, who retires by rotation in terms of
Article 92 at the Annual General Meeting, a Director
5. To re-appoint Messrs Ernst & Young, Chartered Accountants as Auditors
of the Company and to authorise the Directors to determine their remuneration.
6. To authorize the Directors to determine contributions to charities
Notes:
Dated this ………………………. day of ………………… 2009
(i) Please delete the inappropriate words
(ii) A proxy need not be a member of the Company.
Form of Proxy
(iii) Instruction as to completion appear on the reverse of this form.
71
……………………………….
Signature of shareholder
In favour Against

Instructions as to Completion of Proxy Form
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
INSTRUCTIONS AS TO COMPLETION OF PROXY FORM
To be valid, this Form of Proxy must be deposited at No. 310, High Level Road,
Nawinna, Maharagama., not later than
2.00 p.m. on Sunday, 26th July 2009.
In perfecting the Form of Proxy, please ensure that all details are legible.
In the case of a Company/Corporation, the proxy must be under its Common
Seal, which should be affixed and attested in the manner prescribed by its
Articles of Association.
Please indicate with an ‘X’ in the space provided how your proxy is to vote on
each resolution. If no indication is given the proxy at his/her
discretion will vote as he/she thinks fit.
This Form of Proxy shall in the case of an individual be signed by the appointor
or his/her Attorney. Where the Form of Proxy is signed
under a Power of Attorney, which has not been registered with the Company,
the original Power of Attorney together with a
photocopy of same or a copy certified by a Notary Public must
be lodged with the Company, along with the Form of Proxy.

K E G A L L E P L A N T A T I O N S P L C 2 0 0 9

K E G A L L E P L A N T A T I O N S P L C 2 0 0 9