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

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.