Ceylon Glass Company

8/2/2019 Ceylon Glass Company

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C o n t e n t s

Corporate Inormation 2

Chairmans Statement 3-4

Report on the Aairs o the Company 5-6

Directors Responsibility or the Preparation o the Financial Statements 7

The Board o Directors 8-9

Corporate Governance Compliance Table 10

Corporate Governance Remuneration & Audit Committee Report 11

Auditors Report 12

Balance Sheet 13Income Statement 14

Statement o Changes in Equity 15

Cash Flow Statement 16

Accounting Policies 17-21

Note to the Accounts 22-30

Shareholders and Investor Inormation 31

Ten Year Financial Review 32

Glossary o Financial Terminology 33

Notice o Meeting 34


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Audir

Statutory

Messrs.Ernst & Young

Chartered Accountants

P.O.Box 101, Colombo 10

Internal

Messrs.S.J.M.S. Associates

No.04, Castle Lane, Colombo 04.

Bakr

Bank o Ceylon

Citi Bank, N.A

Commercial Bank o Ceylon PLC

Development Finance Corporation o Ceylon PLC

Hatton National Bank PLCPeoples Bank

Standard Chartered Bank

Sampath Bank PLC

scrari

Former ;

Corporate Services Limited

216, De Saram Place , Colombo 10

Telephone: +94 114 718 221 -4

Up to 30/07/2008

Present ;

Mrs.Sagarika Jayasundera (Attorney-at-Law)

148, Maligawa Road, Borupana, Ratmalana

Telephone: +94 112 635 481 -83

With eect rom 31/07/2008

Rgirar

Former ;

Vanik Corporate Services Limited

No.54, Kirulapone Avenue,

Colombo 05

Telephone: +94 112 513 880Up to 30/11/2008

Present ;

P.W Corporate Secretarial (Pvt) Ltd

No.3/17, Kynsey Road, Colombo 08

Telephone: +94 114 897 711 44

With eect rom 01/12/2008

Lgal Advir

Messrs.F.J. & G. de Saram

216, De Saram Place , Colombo 10

CoRpoRAteInformation

th Bard Dircr

Vijay Shah Chairman

M.R. Prelis ( Up to 30/07/2008)

Dr. C.T.S.B Perera

N. Santhanam

R.M.S. Fernando

Sanjay Tiwari CEO / Executive Director

Audi Cmmi

Vijay Shah Chairman

Dr. C.T.S.B Perera

R.M.S Fernando

Rmurai Cmmi

Vijay Shah Chairman

Dr. C.T.S.B PereraR.M.S Fernando

sir Maagm tam

Sanjay Tiwari CEO / Executive Director

U.P. Hettige General Manager

T.P. Sherideen General Manager (Marketing)

Niloni Boteju Financial Controller

A.K.M Fowzin Head o HR

Palitha Priyanandana Senior Manager (Supply Chain)

Cmay namThe Company has changed the name rom CEYLON

GLASS COMPANY PLC to PIRAMAL GLASS CEYLON PLC

with eect rom 26th August 2008 (in accordance with

Section 8 o Companies Act No. 07 o 2007)

Cmay numbr

PQ 190

Rgird ofc

148, Maligawa Road, Borupana, Ratmalana

Telephone: +94 112 635 481 -83

Fax:+94 112 635 484E-mail: [email protected]

Web: www.piramalglassceylon.com

Facry

Wagawatte Road, Poruwadanda, Horana.

Telephone: +94 344 938 965 -67

Fax:+94 342 258120

Marawila Road Nattandiya

Telephone: +94 322 254 242

Fax:+94 322 255 193


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Dear Shareholder,

The Financial Year ending March, 2009 has been a

very turbulent year in terms o the global economy

environment with clouds o recession looming above all

our markets. There has been etreme volatility in uel

and other input prices as well as some compression o

demand in the domestic market due to the general weak

economic conditions in the country.

As against this backdrop, your Company has ully

completed the epansion o the new acility initiated

last year. As you are all aware, we commenced production

in our new relocated actory at Horana in the month o

December, 2007 and by the inancial year end 2008

we had our lines in operation. We commenced, as

scheduled, the ith manuacturing line in July 2008

thereby increasing our draw rom average o 150 tons

per day to 200 tons per day. The last phase o the

project was completed in November, 2008 by installing

the boosting transormer which helped us reach a

maimum draw o 250 tons per day. The ith line we

have installed has a unique eature o making bottles in

triple gob which helps the Company to make lightweight

smaller bottles with increased speed.

As you are aware, your Company has a unique capability

o making coloured bottles through Foreharthcolouring, perhaps the only one in Asia, or which

specialty bottles, has been increased rom 40 tons

per day to 100 tons per day and enabling two lines to

manuacture these bottles as against one earlier.

With more than doubling the Companys manuacturing

capacity, the Company will make a major thrust into

eports in addition to servicing ully the domestic

demand. This will be beneicial to the company as well as

bring in much needed oreign echange into the country.

prrmac Rvw

Once again your Company has broken the record o

earlier years by achieving a Sales o LKR 2936 Million

as against LKR 2014 Million or the year ended 31stMarch 2008, relecting a growth o 46%. The company

has demonstrated that it can successully address the

global markets by achieving an encouraging growth o

around 111% in the e port sales as against the previous

year. The Company achieved an Eport sales o LKR 424

Million as against LKR 201 Million or the year ended

31st March 2008

The ull potential o the urnace i.e draw o maimum

250 tons glass per day was reaped only during the 4th

quarter o the Financial year as the remaining work o

the Epansion Project was completed by the end o the

3rd quarter o the Financial year.

As mentioned earlier, this was a year o turbulence and

volatility across global markets particularly with respect

to input costs. During the year Gas prices went up by a

urther 5% , Furnace Oil prices increased by 17% and

Diesel price went up by 40%. These prices stabilised

to an etent only in the 4th quarter o the inancial

year. The CEB unit rate went up by 14% in the month o

November 2008, which also had a substantial impact on

the energy cost. It is not only the energy which has

impacted cost o production but also the substantial

increase in all Raw Materials, Packing Materials and

transport cost.

With the ull year impact o Interest cost and incremental

impact o AWDR increasing by 4.5% and AWPLR

increasing by 7% as compared to 2007 rates, the

ChAiRMAnsStatement


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ChAiRMAnsStatement

interest costs rose rom LKR 163 Mil to LKR 659 Mil or

the year. The depreciation went up to LKR 330 Mil rom

LKR 139 Mil with the ull capitalization o the Horana

Project. In spite o the cost escalation, the Company

could maintain its Gross Proit margin at 20% this year

as against 22% o previous year mainly due to higher

volume o production.

Lkg Aad

The Management is very positive about the uture

o the Company. With the entire inrastructure now

in place, the Company will now be able to maintain

its production and will be ully geared to service theInternational market with the surplus capacity. The

additional tonnage available would be more aggressively

addressed towards global markets during the year. The

ocus o the Company will be towards specialized liquor

and beverage bottles through leveraging o colouring

orehearth acility or neighboring countries like India,

Australia and South Arica, particularly or packaging

boutique wines.

Whilst ensuring the capacity will be utilized, the

Company will migrate and ocus towards higher value

eports and coloured bottle segment in the near uture.

The perormance o our company, during the year, could

not have been achieved without the untiring eorts,

dedication and commitment o our employees. I take this

opportunity to place on record my gratitude to them.

I also thank our valued customers or their continuing

patronage and support.

I also wish to convey my gratitude to my colleagues

on the Board o Directors and the management team

or their valuable contribution during the inancial

year. I would ail in my duty, I I do not thank you, our

shareholders, or your conidence in us.

I particularly like to thank the Piramal Glass Indian

Corporate project team which has helped us in the

management and eecution o the entire capital

ependiture project within a very tight time schedule.

Their wealth o eperience in managing such large

investment project across the Group has been very

valuable or us.

I take this opportunity to thank the various departments

o the Government o Sri Lanka, Board o Investment,

Consortium Banks and other lending Banks, institutions

and clients that etended assistance to Piramal Glass

and encouraged us to make additional investments in

the Company.

Mr. Vijay Shah, Chairman o the company is the ManagingDirector o Piramal Glass Limited. Transactions with

Piramal Glass Ltd are disclosed in Note 27.1.

Vjay sa

Chairman

28th April 2009


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RepoRt on the AFFAiRs of the Company

t sarldrThe Board o Directors have pleasure in presenting the 54th Annual Report and the Audited Financial Statements o theCompany or the year ended 31st March 2009.

ReVieW oF YeARThe Chairmans statement describes in brie the Companys aairs and the perormance o the Company during the yearand also mentions the events subsequent to the balance sheet date.

pRinCipAL ACtiVitYPrincipal activity o the Company is the manuacture and sale o Glass Containers. The Company owns Freehold Land atRatmalana (21 acres) and Nattandiya (54 acres) and Leasehold Land at Horana (25 acres) and Nattandiya (9 acres).

CURRenCYAll gures appearing in the accounts are in Sri Lankan Rupees and has been denoted as LKR.

FinAnCiAL ResULts 009 008LKR 000 LKR 000

Net Turnover 2,936,155 2,014,128

Prot beore Interest, Depreciation & Ta (PBIDT) 727,779 361,702Interest (658,698) (162,932)Depreciation (330,330) (138,758)Prot/(Loss) beore Ta (261,249) 60,012Income Ta (Epense)/Reversal 314 (14,031)Prot ater Ta & beore Accelerated Depreciation (260,935) 45,981Accelerated Depreciation on Property, Plant & Equipment - (10,839)Prot/(Loss) ater Ta (260,935) 35,142

sALes hiGhLiGhtsThe year under review ended with a growth o 46% as against the previous year.

O the total turnover o the Company eports contributed up to 14% as against 10% in the previous year. The Companyhas shown a substantial growth o 111% in the Eport Turnover. The eport turn over was 424Mn as against 201Mn oprevious year. This growth is the refection o the initial benets realised by the Company rom its strategy o ocusing onInternational Market along with increasing its product range in the domestic market as per the trend and requirements.

MAnUFACtURinG inFRAstRUCtUReThe new actory at Horana commenced its operations on 10th December 2007. The new urnace has a designed capacityo 205 tons which can go up to 250 tons and ve production lines.

eMpLoYMentThe Company employed a total o 634 persons directly and indirectly as at 31st March 2009.(2008 was 475)

CApitAL eXpenDitURe AnD inVestMentsThe Company invested a total o LKR 656,590,656/- during this nancial year and LKR 3,274,126,321/- FY 2008.

The capital commitments as at the balance sheet date are disclosed in Note 23.1 to the Accounts.stAteD CApitALThe Stated capital as at the end o the year was LKR 1,526,407,485/-, consisting o 950,086,080 number o Ordinar y Shares.

shARe hoLDinGsThere were 11,742 registered shareholders as at 31stMarch 2009, and the distribution o shares is indicated on page 31.

the post BALAnCe sheet eVentsThe Post Balance Sheet events are disclosed in Note 25 to the Financial Statements.

the BoARD oF DiReCtoRsVijay Shah ChairmanM.R. Prelis (Resigned on 30/07/2008)

Dr. C.T.S.B. PereraN.SanthanamR.M.S. FernandoSanjay Tiwari CEO / Eecutive Director


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RepoRt on the AFFAiRs of the Company

AppointMent oF neW DiReCtoRNil

peRsons Who CeAseD to Be DiReCtoRs

Mr. M.R. Prelis has resigned as Director during this nancial year.

DiReCtoRs inteRest ReGisteRThe Directors have made declarations as provided or in section 192 (2) o the Companies Act No. 7 o 2007.The relatedentries were made in the interests register during the year under review. The related party disclosures are reerred to inNote 26 to the Financial Statements. Mr. Vijay Shah, Chairman o the Company is the Managing Director o Piramal GlassLtd. The share ownership o directors is indicated below.

DiReCtoRs shARehoLDinGsThe Directors and their spouses share holdings as at 31st March are as ollows:

009 008Mr.M.R.Prelis 10,000 (Resigned) 10,000Dr. C.T.S.B.Perera 50,000 50,000

DiReCtoRs eMoLUMentsThe remunerations and other benets made to the Directors during the year are disclosed in Note 26.3

DonAtionsThe donations made by the Company during the year are disclosed in Note 21 to the Account.

ResiGnAtion oF seCRetARiesCorporate Services Limited resigned as secretaries o the company with eect rom 30th July 2008.

AppointMent oF neW seCRetARYMs. Sagarika Jayasundera (Attorney-at-Law) was appointed as the new Company Secretary with eect rom 31stJuly 2008.

ResiGnAtion oF ReGistRARsVanik Corporate Services Limited resigned as registrars o the company with eect rom 30th November 2008.

AppointMent oF neW ReGistRARsP W Corporate Secretarial (Pvt) Ltd was appointed as new Comapany Registrars with eect rom 1st December 2008.

AUDitoRsThe Fianancial Statements have been audited by Messrs. Ernst & Young, Chartered Accountants o Sri Lanka, whohave indicated their willingness to continue in oce and a resolution relating to their reappointment, will be pro-posed at the Annual General Meeting. Audit ees and epenses to Messrs. Ernst & Young or the FY 09 is LKR 613,931/-(FY 08 LKR 539,500/-) and ees and epenses or taation services is LKR 249,888/- (2008 LKR 390,360/-).As ar as the Directors are aware, the auditors do not have any other relationship with the Company.

For and on behal o the Board.

Sgd. Mr. Sanjay Tiwari Sgd. Dr. C.T.S.B. Perera Sgd. Ms. Sagarika JayasunderaCEO/Eecutive Director Director Company Secretary

22nd May 2009


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DiReCtoRs Responsibility for the Preparation of Financial Statements

The responsibility o the Directors, in relation to the Financial Statements, is set out in the ollowing statement. The

responsibility o the Auditors, in relation to the Financial Statements, is set out in the Auditors Report on page 12 o

the Report.

The eternal auditors. Messrs Ernst & Young, appointed in accordance with the resolution passed at the last Annual

General Meeting, were provided with every opportunity to undertake whatever inspections they consider appropriate to

enable them to orm their opinion on the nancial statements.

The Financial Statement or the year 2008/2009 prepared and presented in this report are consistent with the

underlying books o accounts and are in conormity with the requirements o the Sri Lanka Accounting Standards,

Companies Act No. 7 o 2007, Sri Lank a Accounting and Auditing Standards Act No. 15 o 1995 and the Lis ting Rules

o the Colombo Stock Echange.

Under section 151 (1) o the Companies Act No. 7 o 2007, the Directors o the Company have responsibility or ensur ing

that the Company keeps proper books o accounts o all the transactions and prepares nancial statements that give a

true and air view o the state o aairs o the Company and the prot and loss or the year.

The Directors consider that these nancial statements have been prepared using appropriate accounting policies, applied

consistently, and supported by reasonable and prudent judgments and estimates and is in compliance with applicable

Sri Lanka Accounting Standards and provide the inormation required by the Companies Act, as relevant. Any change to

accounting policies and reasons or such change, is disclosed in the Notes to the Financial Statements.

The Directors are responsible or keeping proper accounting records, and to take reasonable steps as ar as practicable to

ensure the accuracy and reliability o accounting records, to enable the preparation o nancial statements. The Directors

have a general responsibility to take reasonable steps to saeguard the assets o the Company.

In discharging this responsibility the Directors have instituted a system o internal controls and a system or monitor ing

its eectiveness. The system o controls provide reasonable and not absolute assurance o saeguarding o Companys

assets, maintenance o proper accounting records and the reliability o nancial inormation.

The Directors believe, ater reviewing the nancial position and the cash fow o the Company, that the Company has

adequate resources to continue in operation or the oreseeable uture. For this reason they continue to adopt the going

concern basis in preparing the nancial statements.

By order o the Board

SAGARIKA JAYASUNDERA

Company Secretary

Piramal Glass Ceylon PLC

12th May 2009.


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DR. C. t. s. B. peReRANon Executive, Independent Director

Appointed to the Board o Piramal Glass Ceylon PLC (ormerly known as CeylonGlass Company) in 2003. Dr Perera has served as the Managing Director o PiramalGlass Ceylon PLC rom July 1995 to March 2002. He served as rst Chairman oSME Bank. Additional Director General Board o Investment, Sri Lanka. Presently

serves as Managing Director o Samson Rajarata Tiles and Director on Board omany reputed Companies.

He holds a PhD-CNAA - North Staordshire UK, BSc(Hons) CNAA NorthStaodshire UK , BSc University o Ceylon and Fellow o the Institute o Metal,Materials & Mining (UK), Is, BSc University o Ceylon.

the BoARD of Directors

MR. ViJAY shAhChairman

Non Executive, Non Independent Director

Appointed to the Board in the year 1999. Took over as Chairman o Piramal GlassCeylon PLC (ormerly known as Ceylon Glass Company) since 2002. Joined PiramalGroup in 1988. Since September 1992 he took over as Managing Director oPiramal Glass. Since August 99, Mr. Shah was assigned responsibility as EecutiveDirector and Chie Operating Ocer o Nicholas Piramal India Limited. He was aSenior Associate at Management Structure & Systems Pvt Ltd. - a ManagementConsultancy organization rom 1982 to 1987. Mr Shah has been instrumental inseveral mergers & acquisitions and consequent integration globally in the PiramalGroup. He is a Director in Piramal Glass UK Ltd, Piramal Glass - USA Inc,. AllerganIndia Limited etc.

He holds Bachelor's Degree in Commerce Rank holder and member o "The Instituteo Chartered Accounts o India". Also completed Advance Management program

o Harvard Business School Boston, USA in 1981 and Management EducationProgramme rom IIM Ahmedabad in 1987.

MR n sAnthAnAMNon Executive, Non Independent Director

Mr. N. Santhanam was appointed on the Board o Piramal Glass Ceylon PLC (ormerlyknown as Ceylon Glass Company) in 2002.

He is a Chartered Accountant by proession and has nearly 36 years o rich andvaried eper ience in Corporate Accounts, Finance, Treasury, Taation, Secretarial,Legal and Mergers and Acquisitions apart rom gaining deep insight into generalbusiness management. Mr. Santhanam was with the Wadia Group or nearly 22 yearsand in 2001 joined the Ajay Piramal Group as its Chie Financial Ocer.

He is presently the Eecutive Director and Chie Operating Oicer o PiramalHealthcare Limited, the lagship company o the Ajay Piramal Group. He has

total responsibility o overall operations o its Healthcare Solutions, PharmaSolutions, Global Critical Care, Vitamins and Fine Chemicals and DiagnosticEquipments Businesses.


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the BoARD of Directors

MR sAnJAY tiWARi

CEO / Executive DirectorExecutive, Non Independent Director

Appointed to the Board o Piramal Glass Ceylon PLC (ormerly known as CeylonGlass Company) in December 2005 as CEO and Eecutive Director. Joined PiramalGroup in June 2004 as Vice President - Finance & Commercial, heading Accounts,Finance, IT, Logistics and Supply Chain o Piramal Glass Ltd till Nov 2005. Beore

joining the Piramal Group worked with Zydus Cadila Healthcare Ltd and TorrentGroup as CFO and General Manager Commercial or 12 years. Diversied eperiencein various positions in dierent Industries Tetile, Colour Chemicals, Cables,Pharmaceuticals, Bulk Drugs and Glass.

He holds a Bachelors Degree in Commerce, Fellow member o The Institute

o Chartered Accountants o India, completed AFM & GMP programs rom IIMAhmedabad, Eecutive Management Program rom University o Michigan.

MR. R. M. s. FeRnAnDoNon Executive, Independent Director

Appointed to the Board o Piramal Glass Ceylon PLC (ormerly known as CeylonGlass Company) on 8th October 2007. Mr. Fernando has worked at the DFCC or 10

years and joined the National Development Bank in 1989 and was the CEO o theNational Development bank rom 1989-2001. He also served as the Secretary tothe Ministry o Investment Promotions, Industrial Policy, and constitutional Aairsduring 2002-2004. Mr. Fernando has been an international consultant and advisorto the World Bank and the Asian Development Bank and is a member o the Boardo Trustees in Womens World Banking, New York.

Member o Chartered Institute o Bankers, United Kingdom, Companion o theChartered Institute o Management in UK and Chartered Institute o ManagementAccountants UK.


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CoRpoRAte GoVeRnAnCeCompliance Table (Colombo Stock Exchange Circular No. 02/2008)

Rul n subjc Alicabl Rquirm Cmliac sau Dail

6.1 Non-Executive Directors At least one third o the total number o Compliant Four out o Five Directors are

Directors should be Non-Executive Directors Non-Executive Directors

6.2 (a) Independent Directors Two or one third o Non-Executive Directors, Compliant Two o the Four Non-Executive

whichever is higher should be independent Directors are independent

6.2 (b) Independent Directors Each Non-Executive Director should submit a Compliant Non-Executive Directors have

declaration o independence / non-independence submitted the declaration

in the prescribed ormat

6.3 (a) Disclosure relating to Names o independent Directors should be Compliant Please reer page 8-9

Directors disclosed in the Annual Report

6.3 (c) Disclosure relating to A brie resume o each Director should be Compliant Please reer page 8-9

Directors included in the Annual Report including the

area o Expertise

6.5 Remuneration Committee A listed company shall have a Compliant Name o the members o the

Remuneration Committee Remuneration Committee is

available in page 2

6.5 (a) Composition o Remuneration Shall comprise o Non-Executive Directors a Compliant Remuneration Committee consists o

Committee majority o whom can be independent three Non-Executive Directors o which

two are independent.

6.5 (b) Functions o Remuneration The Remuneration Committee shall recommend Compliant Please reer the Remuneration

Committee the remuneration o the Chie Executive Ofcer Committee Report on page 11

and Executive Directors

6.5 (c) Disclosure in the Annual The Annual Report should set out;

Report relating to

Remuneration Committee a) Names o Directors comprising the Compliant Please reer page 2Remuneration Committee

b) Statement o Remuneration Policy Compliant Please reer the RemunerationCommittee Report on page 11 or a brie

statement o policy

c) Aggregate remuneration paid to Executive Compliant Please reer page 30& Non-Executive Directors

6.6 Audit Committee The Company shall have a Audit Committee Compliant Names o the members o the Audit

Committee is available on page 2

6.6 (a) Composition o Shall comprise o Non-Executive Directors a Compliant Audit Committee consists o three Non-

Audit Committee majority o whom shall be independent Executive Directors o which two are

independent.

Chie Executive Ofcer and the Chie Financial Compliant CEO / Executive Director and the

Ofcer should attend Audit Committee Meetings Financial Controller attend by invitation

The Chairman o the Audit Committee or one Compliant Chairman o Audit Committee and one

member should be a member o a proessional member are members o a

accounting body proessional accounting body

6.6 (b) Audit Committee Should be as outlined in the Section Compliant Please reer page 11

Functions 6 o the listing rules

Disclosure in the Annual a) Names o the Directors comprising Compliant Please reer page 2

Report relating to the Audit Committee

Audit Committeeb) The Audit Committee shall make a Compliant Please reer Audit Committee

determination o the independence o the Report on page 11

Auditors and disclose the or such determination

c) The Annual Report shall contain a Report o Compliant Please reer Audit Committ ee Report

the Audit Committee setting out the manner on page 11

o Compliance o the unctions


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REMUNERATION COMMITTEE REPORT

The Remuneration Committee is a sub-committee o the Board.

This committee consists o three members o which two areindependent Directors. The Chairperson is appointed by the

Board.

The Committee was established or the purpose o recommending

the Remuneration o the CEO /Eecutive Director and Senior

Management.

The Committee has acted within the parameters set by its terms

o reerence.

The CEO/Eecutive Director attends the Committee meetings by

invitation. However, he does not participate in any discussionpertaining to his remuneration.

The remuneration packages linked to the individual perormances

are aligned with the Companys long-term strategy.

The aggregrate remuneration paid to Eecutive and Non

Eecutive Directors are disclosed on page 30. The members o

the remuneration committee are disclosed in page 2.

Sgd. Mr.Vijay Shah

Chairman

28th April 2009.

INDEPENDENT DIRECTORS

The independent directors are Dr. C.T.S.B. Perera andMr. R.M.S. Fernando. The board is o the opinion that Dr.C.T.S.B.

Perera is an independent director, notwithstanding the act

that he has been a director o the Company continuously or a

period eceeding nine years. It has been so determined taking

to account the eperience, qualications and the industry

eperience he possess.

CoRpoRAteGovernance

AUDIT COMMITTEE REPORT

The Audit Committee is established or the purpose o assisting

the Board in ullling their oversight responsibilities regardingthe integrity o the Financial Statements, risk management,

internal control and compliance with legal & regulatory

requirements, review o eternal auditors perormance &

independence and internal audit unctions.

The Audit Committee is ormally constituted as a Sub-Committee

o the Main Board, to which it is accountable.

Mg Aud Cmm

Five meetings were held during the year ended 31st March 2009.

The Internal Auditors attended all these meetings.

iral Audr

The internal audit unction is outsourced to Messrs. SJMS

Associates, a rm o Chartered Accountants. Internal Auditors

directly submitted their ndings to Audit Committee quarterly

and their reports are made available to Eternal Auditors.

exral Audr

The Audit committee reviews the independence and objectivity

o the eternal auditors and conducts a ormal review o

eectiveness o the eternal audit process. The committee

reviewed the non audit services and its impact on the

independence o the eternal auditors.

The audit committee has recommended to the Board o Directors

that Messers Ernst & Young to be continued as the auditors or

the nancial year ending 31st March 2010.

Aud Cmm prrmac

The Annual Perormance o Audit Committee was evaluated by

other members o the Board o Directors and was deemed to

be satisactory.

CcluThe Audit Committee is satisied that the eectiveness o

the organizational structure o the Company and o the

implementation o the Companys accounting policies and

operational controls provide reasonable assurance that the

aairs o the Company are managed in accordance with

Companys policies and that Companys assets are properly

accounted or and adequately saeguarded. The members o

the Audit Committee are disclosed on page 2.

Sgd. Mr.Vijay Shah

Chairman

28th April 2009.


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ApAG/MRh/JJ

idd Audr' Rr sarldr pramal Gla Cyl pLC (Frmrly kw a Cyl Gla Cmay pLC)

Rr Facal sam

We have audited the accompanying nancial statements o Piramal Glass Ceylon PLC which comprise the balance sheet as at 31 March

2009, and the income statement, statement o changes in equity and cash fow statement or the year then ended, and a summary o

signicant accounting policies and other eplanatory notes.

Maagm Rbly r Facal sam

Management is responsible or the preparation and air presentation o these inancial statements in accordance with Sri Lanka

Accounting Standards. This responsibility includes: designing, implementing and maintaining internal controls relevant to the

preparation and air presentation o inancial statements that are ree rom material misstatement, whether due to raud or error;

selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

sc Aud ad Ba o

Our responsibility is to epress an opinion on these nancial statements based on our audit. We conducted our audit in accordance withSri Lanka Auditing Standards. Those standards require that we plan and perorm the audit to obtain reasonable assurance whether

the nancial statements are ree rom material misstatement.

An audit includes eamining, on a test basis, evidence supporting the amounts and disclosures in the nancial statements. An audit

also includes assessing the accounting principles used and signicant estimates made by management, as well as evaluating the

overall nancial statement presentation.

We have obtained all the inormation and eplanations which to the best o our knowledge and belie were necessary or the purposes

o our audit. We thereore believe that our audit provides a reasonable basis or our opinion.

o

In our opinion, so ar as appears rom our eamination, the Company maintained proper accounting records or the year ended 31March 2009 and the nancial statements give a true and air view o the Companys state o aairs as at 31 March 2009 and its loss

and cash fows or the year then ended in accordance with Sri Lanka Accounting Standards.

Rr or Lgal ad Rgulary Rqurm

In our opinion, these nancial statements also comply with the requirements o Section 151(2) o the Companies Act No. 07 o 2007.

28th April 2009

Colombo.

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 ACMAA P A Gunasekera FCA FCMA A Herath FCA D K Hulangamuwa FCA FCMA LLB (Lond) A S M Ismail FCA FCMAH M A Jayesinghe FCA FCMA Ms. G G S Manatunga ACA Ms. L C G Nanayakkara FCA FCMA B E Wijesuriya ACA ACMA

AUDitoRs Report

Chartered Accountants

201 De Saram PlaceP.O. Box 101Colombo 10Sri Lanka

Tel : (0) 11,2463500Fax Gen : (0) 11 2697369

Tax : (0) 11 [email protected]


13/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

BALAnCeSheet as at 31st March, 2009

n 009 008LKR LKR

Assetsn-Curr A

Property, Plant and Equipment 4 4,587,154,987 4,158,442,273Leasehold Land 5 25,735,070 26,783,327Investment Property 6 666,130,000 703,142,457Long Term Investment 7 261,359 261,359

5,279,281,416 4,888,629,416Curr AInventor ies 8 758,653,163 467,614,194Trade and Other Receivables 9 950,963,885 954,063,961Income Ta Receivables 13 20,424,232 10,880,354Cash and Bank Balances 18 17,254,280 30,092,522

1,747,295,561 1,462,651,031tal A 7,026,576,977 6,351,280,447

eQUitY AnD LiABiLitiesCaal ad RrvStated Capital 10 1,526,407,485 1,526,407,485Reserves 11 688,535,043 592,677,500Retained Earnings 61,115,255 341,052,387tal equy 2,276,057,783 2,460,137,372

n-Curr Labl

Interest Bearing Loans and Borrowings 12 1,860,550,719 1,846,159,193Deerred Ta Liabilities 14 18,979,577 18,979,577Retirement Benet Obligations 15 84,500,270 78,381,791

1,964,030,566 1,943,520,561

Curr Labl

Trade and Other Payables 16 648,777,931 696,709,900Dividends Payable 17 10,881,132 10,600,998Interest Bearing Loans and Borrowings 12 2,126,829,565 1,240,311,616

2,786,488,629 1,947,622,514tal equy ad Labl 7,026,576,977 6,351,280,447

These Financial Statements are in compliance with the requirements o the Companies Act No :07 o 2007.

Sgd: Mrs. Niloni BotejuFinancial Controller

The Board o Directors is responsible or the preparation and presentation o these Financial statements. Signed or and on behalo the board by.

Sgd: Mr. Sanjay Tiwari Sgd: Dr. C.T.S.B. PereraCEO/Eecutive Director Director

The accounting policies and notes on pages 17 through 30 orm an integral part o the nancial statements.

Colombo

28th April 2009


14/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

n 009 008

LKR LKR

Rvu 3 2,936,155,203 2,014,127,621

Cost o Sales (2,345,801,702) (1,552,805,828)

Gross Prot 590,353,501 461,321,793

Other Operating Income 19 53,171,591 4,367,486

Distribution Costs (69,336,041) (40,345,278)

Administrative Epenses (176,740,334) (202,399,293)

Accelerated Depreciation on Property, Plant & Equipment - (10,838,910)

Finance Cost 20 (658,698,253) (162,932,242)

prf/(L) Br tax (261,249,537) 49,173,556

Income Ta (Epense) / Reversal 13 314,126 (14,031,103)

Net Prot/(Loss) or the Year (260,935,410) 35,142,453

Earnings/(Loss) Per Share - Basic 22 (0.27) 0.05

Dividends Per Share 17 0.02 0.15


inCoMeStatement for the year ended 31st March, 2009


15/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

stAteMentof Changes in Equity for the year ended 31st March, 2009

shar shar sad ohr Rvaluai Raid talCaial prmium Caial Rrv Rrv earig

Note LKR LKR LKR LKR LKR LKR LKR

Balance as at 0 April 00 554,216,880 220,039,125 - 21,502,500 - 317,446,897 1,113,205,402

Transerred to Stated Capital (554,216,880) (220,039,125) 774,256,005 - - - -

Surplus on Revaluation o Property,Plant & Equipment 11 - - - - 571,175,000 - 571,175,000

Tax eect o Items Taken Directlyto or Transerred rom Equity 14 - - - - - 71,595,544 71,595,544

Dividend Paid 17 - - - - - (83,132,507) (83,132,507)

Issues o shares or cash - - 752,151,480 - - - 752,151,480

Net Proft or the Year - - - - - 35,142,453 35,142,453

Balance as at March 008 - - 1,526,407,485 21,502,500 571,175,000 341,052,387 2,460,137,372

Dividend Paid 17 - - - - - (19,001,722) (19,001,722)

Surplus on Revaluation o Property,Plant & Equipment 11 - - - - 95,857,543 - 95,857,543

Net Loss or the Year - - - - - (260,935,410) (260,935,410)

Balance as at March 009 - - 1,526,407,485 21,502,500 667,032,543 61,115,255 2,276,057,783



16/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

CAsh Flows Statement for the year ended 31st March, 2009

009 008

Ca Flw rm/(ud ) orag Acv n LKR LKR

Ca Flw rm orag Acv

Net Prot/(Loss) beore ta (261,249,537) 49,173,556

Adjum r

Depreciation 4 330,330,106 138,758,255

Work-in-progress write o /Accelarated Depreciation on

Property, Plant and Equipments 12,666,344 10,838,910

Amortisation o Leasehold Property 5 1,048,257 1,087,009

Provision or Retirement Benet Obligations 15 13,888,428 14,000,563

Investment Income 19 (459,423) (4,367,486)

Gain on sale o Property, Plant and Equipments 19 (52,712,168) -

Finance Cost 20 658,698,253 162,932,242

orag prf Br Wrkg Caal Cag 702,210,261 371,336,040

(Increase)/Decrease in Inventories (291,038,969) (97,926,355)

(Increase)/Decrease in Trade and Other Receivables 34,016,879 (113,302,432)

Increase/(Decrease) in Trade and Other Payables (47,931,969) 325,040,088

Ca Grad rm ora 397,256,202 486,234,350

Income Ta Paid (9,229,751) (77,364,006)

Retirement Benet Obligations Costs paid 15 (7,769,949) (4,917,067)

Interest Paid 20 (658,698,253) (162,932,242)

Cash Flow rom Operating Activities (278,441,752) 241,021,035

Ca Flw rm ivg Acv

Acquisition o Property, Plant and Equipment 4 (656,590,656) (3,274,126,321)

Proceeds rom Disposal o Property, Plant and Equipment 39,546,854 -

Interest Received 19 369,263 4,367,486

Dividend Received 19 90,160 75,366

n Ca Flw ud ivg Acv (616,584,379) (3,269,758,835)

Ca Flw rm Facg Acv

Proceeds rom Rights Issue - 752,151,480

Proceeds rom Interest Bearing Loans and Borrowings 12 3,221,270,466 2,744,895,820

Redemption o Debentures - (69,821,408)

Principal Payment under Finance Lease Liability 12 (1,839,170) (1,748,806)

Dividends Paid 17 (18,721,588) (81,573,315)

Repayment o Interest Bearing Loans & Borrowings 12 (2,312,404,787) (568,065,453)

n Ca Flw rm Facg Acv 888,304,922 2,775,838,318

n Dcra Ca ad Ca equval (6,721,209) (252,899,482)

Ca ad Ca equval a bgg yar 18 (274,332,808) (21,433,326)

Ca ad Ca equval a d yar 18 (281,054,017) (274,332,808)

The accounting policies and notes on pages 17 through 30 orm an integral par t o the nancial statements.


17/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

siGniFiCAntAccounting Policies year ended 31st March, 2009

. CoRpoRAte inFoRMAtion

. Gral

Piramal Glass Ceylon PLC (Company) is a public limited liability Company incorporated and domiciled in Sri Lanka and

listed in the Colombo Stock Echange. The registered oce o the Company and pr inciple place o Business is located at 148,

Maligawa Road, Borupana, Ratmalana and the production acility is located in Horana.

. prcal Acv ad naur ora

During the year, the principal activity o the Company was the manuacturing and sale o glass bottles.

. par err ad Ulma par err

The Companys parent undertaking is Piramal Glass Limited, which is incorporated in India.

. Da Aurza r iu

The Financial Statements o Piramal Glass Ceylon PLC or the year ended 31st March 2009 were author ized or issue in accordance

with a resolution o the board o directors on 28 April 2009.

. Ba praraThe Financial Statements have been prepared on a historical cost basis, ecept or certain classes o asset categories that have

been measured at air value. The Financial Statements are presented in Sri Lankan Rupees. The preparation and presentation

o these Financial Statements is in compliance with the Companies Act. No. 07 o 2007.

.. sam cmlac

The Financial Statements o Piramal Glass Ceylon PLC have been prepared in accordance with Sri Lanka Accounting

Standards (SLAS).

.. Cmarav irma

The accounting policies have been consistently applied by the Company and are consistent with those used in the

previous audited nancial year which ended 31st March 2008.

. sUMMARY oF siGniFiCAnt ACCoUntinG poLiCies

.. Frg Currcy trala

The nancial statements are presented in Sri Lankan Rupees, which is the Companys unctional and presentation

currency. Transactions in oreign currencies are initially recorded at the unctional currency rate ruling at the date o

the transaction. Monetary assets and liabilities denominated in oreign currencies are retranslated at the unctional

currency rate o echange ruling at the balance sheet date. All di erences are taken to prot or loss. Non monetar y

items that are measured in terms o historical cost in a oreign currency are translated using the echange rates as at

the dates o the initial transactions. Non monetary items measured at air value in a oreign currency are translated

using the echange rates at the date when the air value was determined.

.. taxa

Curr taxThe provision or income ta is based on the elements o income and ependiture as reported in the nancial statements

and computed in accordance with the provisions o the Inland Revenue Act.

Pursuant to agreement dated 19th July 2006 entered into with Board o Investment, the imposition, payment and

recovery o income ta shall not apply or a period o 5 years rom 10th December 2007. This eemption epires on

9th December 2012.

Ater the said eemption period, the Company would be liable or income ta at the rate o 10% or a period o 2 years

and at the rate o 20% thereon.

Drrd taxa

Deerred income ta is provided, using the liability method, on temporary dierences at the balance sheet datebetween the ta bases o assets and liabilities and their carrying amounts or nancial reporting purposes.

Deerred income ta liabilities are recognised or all taable temporary dierences ecept where the deerred income


18/36

8 A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

siGniFiCAntAccounting Policies year ended 31st March, 2009 (Contd.)

ta liability arises rom the initial recognition o an asset or liability in a transaction that is not a business combination

and, at the time o the transaction, aects neither the accounting prot nor taable prot or loss.

Deerred income ta assets are recognised or all deductible temporary di erences, carry-orward o unused ta assets

and unused ta losses, to the etent that it is probable that taable prot will be available against which the deductibletemporary dierences, and the carry-orward o unused ta assets and unused ta losses can be utilised ecept where

the deerred income ta asset relating to the deductible temporary dierence arises rom the initial recognition o

an asset or liability in a transaction that is not a business combination and, at the time o the transaction, aects

neither the accounting prot nor taable prot or loss; and

The carrying amount o deerred income ta assets is reviewed at each balance sheet date and reduced to the etent

that it is no longer probable that sucient taable prot will be available to allow all or part o the deerred income

ta asset to be utilised.

Deerred income ta assets and liabilities are measured at the ta rates that are epected to apply to the year when the

asset is realised or the liability is settled, based on ta rates (and ta laws) that have been enacted or substantively

enacted at the balance sheet date.

Deerred income ta relating to items recognised directly in equity is recognised in equity and not in the income statement.

The Inland Revenue Act does not apply as stated above under the current taes w.e. 10th December 2007. Thereore

temporary dierences do not arise during the year under review.

sal tax

Revenues, epenses and assets are recognised net o the amount o sales ta ecept where the sales ta incurred on a

purchase o assets or service is not recoverable rom the taation authorities in which case the sales ta is recognised

as a part o the cost o the asset or part o the epense items as applicable and receivable and payable that are

stated with the amount o sales ta included. The amount o sales ta recoverable and payable in respect o taation

authorities is included as a part o receivables and payables in the Balance Sheet.

.. Brrwg C

Borrowing costs are recognised as an epense in the period in which they are incurred, ecept to the etent where

borrowing costs that are directly attributable to the acquisition, construction, or production o an asset that takes a

substantial period o time to get ready or its intended use or sale, are capitalized as part o that asset.

.. ivr

Inventories are valued at the lower o cost and net realizable value, ater making due allowances or obsolete and slow

moving items. Net realizable value is the price at which inventories can be sold in the ordinary course o business less

the estimated cost o completion and the estimated cost necessary to make the sale.

The cost incurred in bringing inventor ies to its present location and condition are accounted using the ollowing

cost ormulae:-

Raw Materials - At actual cost on weighted average basis

Finished Goods & Work-in-progress - At the cost o direct materials, direct labour and an appropriate proportion

o ed production overheads based on normal operating capacity.

Consumables & Spares - At actual cost on weighted average basis

Moulds & Neckring Equipment - At Cost less usage or Production

Goods in Transit - At actual cost

.. trad ad or Rcvabl

Trade receivables are stated at the amounts they are estimated to realize net o allowances or bad and doubtul receivables.

Other receivables and dues rom Related Parties are recognized at cost less allowances or bad and doubtul receivables.

.. Ca ad Ca equval

Cash and cash equivalents are dened as cash in hand, demand deposits and short term highly liquid investments,


19/36

9A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


readily convertible to known amounts o cash and subject to insignicant risk o changes in value.

For the purpose o cash fow statement, cash and cash equivalents consist o cash in hand and deposits in banks net o

outstanding bank overdrats. Investments with short maturities i.e. three months or less rom the date o acquisition

are also treated as cash equivalents.

.. prry, pla ad equm

C ad Valua

All items o Property, Plant & Equipment are initially recorded at cost. Where items o Property, Plant and Equipment are

subsequently revalued, the entire class o such assets is revalued. Revaluations are made with sucient regularity to

ensure that their carrying amounts do not di er materially rom their air 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 histor ical 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 recognized as an epense.In these circumstances the increase is recognized as income to the etent o the previous write down. When an assets

carrying amount is decreased as a result o a revaluation, the decrease is recognized as an epense unless it reverses

a previous increment relating to that asset, in which case it is charged against any related revaluation surplus, to the

etent that the decrease does not eceed the amount held in the revaluation surplus in respect o that same asset.

Any balance remaining in the revaluation surplus in respect o an asset, is transerred directly to Retained Earnings

on retirement or disposal o the asset.

Accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount o the asset and

the net amount is restated to the revalued amount o the asset. Upon disposal, any revaluation reserve relating to

the particular asset being sold is transerred to retained earnings.

When each major inspection is perormed, its cost is recognised in the carrying amount o the plant and equipment

as a replacement i the recognition criter ia are satised.

An item o property, plant and equipment is derecognised upon disposal or when no uture economic benets are

epected rom its use or disposal. Any gain or loss arising on derecognition o the asset (calculated as the dierence

between the net disposal proceeds and the carr ying amount o the asset) is included in the income statement in the

year the asset is derecognised.

The assets residual values, useul lives and methods o depreciation are reviewed, and adjusted i appropriate, at

each nancial year end.

..8 La - Company as a lessee

Finance leases, which transer to the Company substantially all the risks and benets incidental to ownership o the

leased item, are capitalised at the inception o the lease at the air value o the leased property or, i lower, at thepresent value o the minimum lease payments. Lease payments are apportioned between the nance charges and

reduction o the lease liability so as to achieve a constant rate o interest on the remaining balance o the liability.

Finance charges are charged refected in the income statement.

Capitalised leased assets are depreciated over the shorter o the estimated useul lie o the asset and the lease term, i

there is no reasonable certainty that the Company will obtain ownership by the end o the lease term. The depreciation

policy or depreciable leased assets is consistent with that or depreciable asset that are owned as described in 4.5

Operating lease payments are recognised as an epense in the income statement on a straight line basis over

the lease term.

..9 Lald prryLeasehold property is stated at recorded carrying values as at the eective date o Sri Lanka Accounting Standard

19 Leases. Such carrying amounts are amortized over the remaining lease term or useul lie o the leased property

whichever in shorter. No urther revaluations o these leasehold Properties will be carried out.


20/36

0 A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


..0 ivm

Lg trm ivm

Long term investments are stated at cost. The cost o the investment is the cost o acquisition inclusive o brokerage

ees, duties and bank ees.

The carrying amount o long term investments is reduced to recognize a decline other than temporary in the value o

investments, determined on an individual investment basis.

.. ivm prr

Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the

cost o replacing part o an eisting investment property at the time that cost is incurred i the recognition criteria

are met; and ecludes the costs o day to day ser vicing o an investment property.

Subsequent to initial recognition, investment properties are stated at air value, which refects market conditions at

the balance sheet date. Gains or losses arising rom changes in the air values o investment properties are included

in the income statement in the year in which they arise.

Investment properties are derecognised when either they have been disposed o or when the investment property

is permanently withdrawn rom use and no uture economic beneit is epected rom its disposal. Any gains or

losses on the retirement or disposal o an investment property are recognised in the income statement in the

year o retirement or disposal.

Transers are made to investment property when, and only when, there is a change in use, evidenced by the end

o owner occupation, commencement o an operating lease to another party or completion o construction or

development. Transers are made rom investment property when, and only when, there is a change in use, evidenced

by commencement o owner occupation or commencement o development with a view to sale.

For a transer rom investment property to owner occupied property or inventories, the deemed cost o property orsubsequent accounting is its air value at the date o change in use. I the property occupied by the Company as an

owner occupied property becomes an investment property, the Company accounts or such property in accordance with

the policy stated under property, plant and equipment up to the date o change in use. For a transer rom inventories

to investment property, any dierence between the air value o the property at that date and its previous carrying

amount is recognised in the income statement. When the Company completes the construction or development o

a sel constructed investment property, any dierence between the air value o the property at that date and its

previous carrying amount is recognised in the income statement.

.. prv

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result o a past

event, where it is probable that an outfow o resources embodying economic benets will be required to settle the

obligation and a reliable estimate can be made o the amount o the obligation.

.. Rrm Bf oblga

a) Dfd Bf pla Grauy

The Company measures the present value o the promised retirement benets o gratuity which is a dened benet

plan with the advice o an actuary every year using Projected Unit Cost Method. Actuarial gains and losses are

recognized as income or epenses in the year in which it arises. The liability is not unded.

b) Dfd Crbu pla emly prvd Fud & emly tru Fud

All employees who are eligible or Employees Provident Fund Contributions and Employees Trust Fund Contributions

are covered by relevant contribution unds in line with respective statutes and regulations. The Company contributes

12% and 3% o gross emoluments o employees to Employees Provident Fund and Employees Trust Fund respectively.

c) n Rcurrg C Lvg Allwac ad r Lum-um aym emlyProvision has been made in the accounts or non recurr ing cost o living allowances payable to employees by the

collective agreement and other lump-sum payments as decided by the management.


21/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


.. imarm A

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. I any such

indication eists, or when annual impairment testing or an asset is required, the Company makes an estimate o the

assets recoverable amount. An assets recoverable amount is the higher o an assets or cash-generating units air

value less costs to sell and its value in use and is determined or an individual asset, unless the asset does not generate

cash infows that are largely independent o those rom other assets or groups o assets. Where the carrying amount

o an asset eceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable

amount. In assessing value in use, the estimated uture cash fows are discounted to their present value using a

pre-ta discount rate that refects current market assessments o the time value o money and the risks specic to

the asset. In determining air value less costs to sell, an appropr iate valuation model is used.

Impairment losses o continuing operations are recognised in the income statement in those epense categories

consistent with the unction o the impaired asset, ecept or property previously revalued where the revaluation was

taken to equity. In this case the impairment is also recognised in equity up to the amount o any previous revaluation.

For assets ecluding goodwill, an assessment is made at each reporting date as to whether there is any indication

that previously recognised impairment losses may no longer eist or may have decreased. I such indication eists,the company makes an estimate o recoverable amount. A previously recognised impairment loss is reversed only i

there has been a change in the estimates used to determine the assets recoverable amount since the last impairment

loss was recognised. I that is the case the carrying amount o the asset is increased to its recoverable amount. That

increased amount cannot eceed the carr ying amount that would have been determined, net o depreciation, had no

impairment loss been recognised or 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 or subsequent increases in its recoverable amount.

.. icm sam

Rvu Rcg

Revenue is recognized to the etent that it is probable that the economic benets will fow to the Company and the

revenue and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the airvalue o the consideration received or receivable net o trade discounts and sales taes. The ollowing specic criteria

are used or the purpose o recognition o revenue.

a) sal Gd

Revenue rom sale o goods is recognized when the signicant risks and rewards o ownership o the goods have

been passed to the buyer; with the Company retaining neither continuing managerial involvement to the degree

usually associated with ownership, nor eective control over the goods sold.

b) ir

Interest Income is recognized as the interest accrued unless collectibility is in doubt.

c) Dvdd

Dividend Income is recognised on cash basis.

d) or

Other income is recognized on an accrual basis

Net Gains and losses o a revenue nature on the disposal o Property, Plant & Equipment have been accounted or in

the income statement, having deducted rom proceeds on disposal, the carrying amount o the assets and related

selling epenses. On disposal o revalued Property, Plant and Equipment, amount remaining in Revaluation Reserve

relating to that asset is transerred directly to Retained Earnings.

Gains and losses arising rom incidental activities to main revenue generating activities and those arising rom a group

o similar transactions which are not material, are aggregated, reported and presented on a net basis.


22/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

notes to the Accounting - year ended 31st March, 2009

009 008LKR LKR

. ReVenUe

. summaryRevenue (3.2) 2,936,155,203 2,014,127,621

2,936,155,203 2,014,127,621

. sgmal irmaLocal Sales 2,511,908,251 1,812,963,404Eport Sales 424,246,952 201,164,217

2,936,155,203 2,014,127,621

. pRopeRtY, pLAnt & eQUipMentBalac Add/ Rvalua Dal/ Balac

a a trar trar a a

. C/Valua 0.0.008 .0.009LKR LKR LKR LKR LKR

A CBuildings 1,178,337,291 76,131,696 - - 1,254,468,987Plant and Machinery 1,092,835,250 593,605,252 - (143,972,325) 1,542,468,177Electrical Power Installation 398,555,448 210,547,411 - - 609,102,859Furnace 705,006,558 75,343,066 - - 780,349,624Motor Vehicles 51,593,907 2,280,000 - (2,340,000) 51,533,907Tools and Implements 6,617,824 1,401,338 - - 8,019,162Oce Equipment 112,283,504 15,978,981 - - 128,262,485Gas Station 19,547,660 1,597,924 - (28,876) 21,116,708

3,564,777,442 976,885,668 - (146,341,201) 4,395,321,909

A Valua/C icurrd c La RvaluaFreehold Land - 37,012,457 95,857,543 - 132,870,000Buildings 116,795,218 - - (26,502,498) 90,292,720Plant and Machinery 867,280,845 - - - 867,280,845Electrical Power Installation 97,186,780 - - - 97,186,780

1,081,262,843 37,012,457 95,857,543 (26,502,498) 1,187,630,345

A Fac LaPlant and Machinery 14,335,027 - - - 14,335,027

14,335,027 - - - 14,335,027tal Valu A 4,660,375,312 1,013,898,125 95,857,543 (172,843,699) 5,597,287,281

. i Cur Cruc

Balac icurrd trar Balaca a Durg a a

0.0.008 yar .0.009LKR LKR LKR LKR

Capital Work-in-Progress 194,265,187 649,386,484 (838,375,515) 5,276,156194,265,187 649,386,484 (838,375,515) 5,276,156

Total Gross Carrying Amount 4,854,640,499 1,663,284,609 (1,011,219,214) 5,602,563,436


23/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

notes to the Accounting - year ended 31st March, 2009

. pRopeRtY, pLAnt & eQUipMent (C.). Drca Balac Carg r Dal/ Balac

a a yar trar a a

A C 0.0.008 .0.009LKR LKR LKR LKR

Buildings 7,717,016 31,037,225 - 38,754,241Plant and Machinery 25,234,801 85,666,808 - 110,901,609Electrical Power Installation 5,354,051 38,450,473 - 43,804,524Furnace 24,111,817 92,634,571 - 116,746,388Motor Vehicles 29,123,988 4,558,663 (2,339,998) 31,342,653Tools and Implements 3,978,793 598,860 - 4,577,653Oce Equipment 51,273,505 18,139,146 - 69,412,651Gas Station 2,195,175 494,205 - 2,689,380

148,989,146 271,579,952 (2,339,998) 418,229,100

A Valua/C icurrd c La Rvalua

Buildings 36,197,000 2,478,172 (8,779,885) 29,895,287Plant and Machiner y 455,877,631 51,579,355 - 507,456,986Electrical Power Installation 46,623,944 3,707,094 - 50,331,038

538,698,575 57,764,621 (8,779,885) 587,683,311

A Fac LaPlant and Machinery 8,510,505 985,533 - 9,496,038

8,510,505 985,533 - 9,496,038tal Drca 696,198,226 330,330,106 (11,119,883) 1,015,408,449

. n Bk Valu 009 008LKR LKR

A CBuildings 1,215,714,746 1,170,620,275Plant and Machinery 1,431,566,568 1,067,600,449Electrical Power Installation 565,298,335 393,201,397Furnace 663,603,236 680,894,741Motor Vehicles 20,191,254 22,469,919Tools and Implements 3,441,508 2,639,031Oce Equipment 58,849,834 61,009,999Gas Station 18,427,328 17,352,485

3,977,092,809 3,415,788,296

A Valua/C icurrd c La RvaluaFreehold Land 132,870,000 -

Buildings 60,397,433 80,598,218Plant and Machinery 359,823,859 411,403,214Electrical Power Installation 46,855,742 50,562,836

599,947,034 542,564,268

o Fac LaPlant and Machinery 4,838,989 5,824,522

4,838,989 5,824,5224,581,878,832 3,964,177,086

In the Course o Construction 5,276,156 194,265,187tal Carryg Amu prry, pla ad equm 4,587,154,987 4,158,442,273


24/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

notes to the Accounting - year ended 31st March, 2009 (Contd.)

. pRopeRtY, pLAnt & eQUipMent (C.). t Drca ra prry, pla & equm ar a llw.

009 008

Buildings and Gas Station 2.5% on cost 2.5% on costPlant and Machinery 10% on cost 10% on costPlant and Machinery - New Project 7.5% on cost 7.5% on costNew Project Furnace Steel 7.5% on cost 7.5% on costNew Project Reectories 12.5% on cost 12.5% on costElectric Power Installation 15% on cost 15% on costElectric Power Installation - New Project 05% on cost 05% on costOce Lab and Equipment

- Computer Systems 25% on cost 25% on cost- Others 10% on cost 10% on cost

Tools and Implements 10% on cost 10% on costMotor Vehicles 15% on cost 15% on cost

. The land and buildings were revalued during the nancial year 31st March 1991 by Messrs Development Finance Corporation o

Ceylon. Further, reehold land has been valued dur ing the year 1995 by Mr. D.S.A. Senevirathne (A.I.V) . The resulting surpluseso Rs. 93,473,350/- on the revaluation in nancial year 90/91 and Rs. 97,417,177/- on the revaluation in nancial year 94/95had been transerred to the revaluation reserve, which was ully utilised or subsequent issues o bonus shares.

The reehold lands have been again revalued by Mr. K.T.D. Tissera (Chartered Valuation Surveyor) in September 2007 and March2009 and the resulting revaluation surplus reported amounts to Rs. 571,175,000/- and Rs. 95,857,543/- respectively.

The carrying amount o revalued assets that would have been included in the nancial statements had the assets been carriedat cost less depreciation is as ollows:

Cumulav n nDrca Carryg Carrygi a wr Amu Amu

Cla A C carrd a c

009 009 008LKR LKR LKR LKRFreehold Land 11,651,585 - 11,651,585 11,651,585Buildings 12,831,883 5,774,348 7,057,535 7,378,333Plant and Machinery 66,199,323 66,199,323 - -Electrical Power Installation 7,876,358 7,088,723 787,635 1,181,454

. During the year the Company acquired Property, Plant & Equipment to the aggregate value o Rs.656,590,656/-(2008 - Rs. 3,274,126,321/-) or cash.

. LeAsehoLD pRopeRtY 009 008LKR LKR

Balance at the beginning o the year 26,783,327 27,870,336Amortisation during the year (1,048,257) (1,087,009)

Balance at the end o the year 25,735,070 26,783,327

. inVestMent pRopeRtY LKR LKRBalance at the beginning o the year 703,142,457 703,142,457Transers during the year or owner occupation purposes (37,012,457) -Balance at the end o the year 666,130,000 703,142,457

. During the year 2007/2008 the Company relocated its production acility rom Rathmalana to Horana. Due to the relocation the landpreviously utilised or the production has been classied under Investment Property as per SLAS 40 as held or un determined utureuse. No Management decision had been taken on the uture intended utilisation o this land as at the date o the balance sheet.


25/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


. LonG teRM inVestMent. ivm equy scur - Qud

n sar 009 008Carryg Mark Carryg Mark

Valu Valu Valu Valu009 008 LKR LKR LKR LKR

Development Finance Corporation o Ceylon PLC 18,032 18,032 261,359 1,226,176 261,359 1,903,608

009 0088. inVentoRies LKR LKR

Raw Materials 249,410,127 162,877,770Work in Progress 6,938,141 15,710,878Finished Goods 262,985,198 82,518,037Consumables and Spares 243,471,685 203,668,000Goods in Transit - 6,991,497Less: Allowance or obsolete and slow moving inventory (4,151,988) (4,151,988)

758,653,163 467,614,194

9. tRADe AnD otheR ReCeiVABLes9. summary LKR LKR

Trade Debtors 737,788,476 611,056,085Less : Allowance or Doubtul Debts (33,915,474) (27,936,052)

703,873,002 583,120,033Other Debtors 207,122,595 250,007,337Advances and Prepayments 29,691,156 104,797,242Loans to Company Ocers (9.2) 10,277,132 16,139,350

950,963,885 954,063,961

9. La Cmay ofcrBalance as at the beginning o the year 16,139,350 25,115,843Loans granted during the year 2,980,000 2,232,000

19,119,350 27,347,843Less: Repayments (8,842,218) (11,208,494)Balance at the end o the year 10,277,132 16,139,350

0. stAteD CApitAL 009 008numbr numbr

Ordinary Shares950,086,080 950,086,080

LKR LKROrdinar y Shares 1,526,407,485 1,526,407,485

0. Rg, prrc ad Rrc Cla CaalThe holders o ordinary shares coner their r ight to receive dividends as declared rom time to time and are entitled to one voteper share at a meeting o the Company. All shares rank equally with regard to the Companys residual assets.

009 008. otheR ReseRVes LKR LKR

General Reserve (11.1) 21,502,500 21,502,500Revaluation Reserve (11.2) 667,032,543 571,175,000

688,535,043 592,677,500

. General Reserve which is a revenue reserve represents the amounts set aside by the directors or general applications.


26/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


. otheR ReseRVes (C.)009 008

. Rvalua Rrv LKR LKROn: Property, Plant and Equipment

As at 1 April 571,175,000 -Revaluation surplus during the year 95,857,543 571,175,000As at 31 March 667,032,543 571,175,000

The above revaluation surplus consists o net surplus resulting rom the revaluation o proper ty, plant and equipment as describedin Note 4.6. The unrealised amount cannot be distributed to shareholders.

. inteRest BeARinG LiABiLities

009 008Amu Amu Amu Amu

Rayabl Rayabl Rayabl RayablW Yar Ar Yar tal W Yar Ar Yar tal

LKR LKR LKR LKR LKR LKR

Finance Leases (12.1) 1,934,202 1,174,112 3,108,314 1,788,291 3,159,193 4,947,484Syndicated Project Loan (12.2) 831,000,000 1,269,000,000 2,100,000,000 507,000,000 1,593,000,000 2,100,000,000Project Loan (12.3) 141,648,333 590,376,607 732,024,940 - 250,000,000 250,000,000Short Term Loans (12.4) 853,938,733 - 853,938,733 427,097,994 - 427,097,994Bank Overdrats (18.2) 298,308,297 - 298,308,297 304,425,331 - 304,425,331

2,126,829,565 1,860,550,719 3,987,380,284 1,240,311,616 1,846,159,193 3,086,470,809

. Fac LaA A nw La Raym A A

0.0.008 obad .0.009

LKR LKR LKR LKRFinance Leases 5,287,515 - (2,046,780) 3,240,735

5,287,515 - (2,046,780) 3,240,735Gross Liability 5,287,515 3,240,735Finance Charge allocated to uture period (340,031) (132,421)Net Liability 4,947,484 3,108,314

A A nw La Raym A A. sydcad prjc La 0.0.008 obad .0.009

LKR LKR LKR LKRDevelopment Finance Corporation o Ceylon PLC 550,000,000 - - 550,000,000Bank o Ceylon 500,000,000 - - 500,000,000

Hatton National Bank PLC 525,000,000 - - 525,000,000Sampath Bank PLC 525,000,000 - - 525,000,0002,100,000,000 - - 2,100,000,000

Ra ir ad trm Raym

The rate o interest will be 4% per annum above the Average Weighted Deposit Rate (AWDR) rounded upwards to the nearest0.5% per annum on Rs 1.7Bn and interest will be charged at 0.25% less than Average Weighted Prime Lending rate (AWPLR)rounded upwards to the nearest 0.5% per annum or the balance loan amount.

1st Instalment o Rs. 507 Million and the balance is payable in 59 equal instalments ater a grace period o 24 months rom thedate o rst disbursement.

Currently Company is in the process o Re-scheduling the repayment o this loan and is in discussion with the partner banks or

the Syndicated Project Loan.


27/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


. inteRest BeARinG LiABiLities (C.)

. prjc La A A nw La Raym A A0.0.008 obad .0.009

LKR LKR LKR LKRDevelopment Finance Corporation o Ceylon PLC* 250,000,000 - (16,666,668) 233,333,332Hatton National Bank PLC* - 248,691,608 - 248,691,608Sampath Bank PLC* - 250,000,000 - 250,000,000

250,000,000 498,691,608 (16,666,668) 732,024,940

Ra ir ad trm RaymR. 0 M La*The rate o interest will be 1% per annum above the Average Weighted Prime Lending Rate (AWPLR) rounded upwards to thenearest 0.5% . Repayable by 60 monthly installments ater a grace per iod o 12 months rom the date o rst disbursement.

. sr trm La A A nw La Raym A A0.0.008 obad .0.009

LKR LKR LKR LKRCommercial Bank o Ceylon PLC 75,000,000 250,000,000 (258,500,000) 66,500,000Peoples Bank 10,097,994 155,114,383 (83,449,209) 81,763,168Citibank N.A. 90,000,000 1,828,214,475 (1,494,788,910) 423,425,565Standard Chartered Bank 252,000,000 489,250,000 (459,000,000) 282,250,000

427,097,994 2,722,578,858 (2,295,738,119) 853,938,733

. inCoMe tAX 009 008LKR LKR

. Balance (Payable) / Receiavble as at Beginning o the Year 10,880,354 (39,717,321)Under/(Over) Provision o current taes in respect o prior years (13.3) 1,127,857 10,472,123(Provision) / Reversal Made During the Year (13.3) (813,730) (37,238,454)Payments Made During the Year 9,229,751 77,364,006Balance as at the end o the Year 20,424,232 10,880,354

. Pursuant to agreement dated 19th July 2006 entered into with Board o Investment, the imposition, payment and recovery oincome ta shall not apply or a period o 5 years rom 10th December 2007. This eemption epires on 9th December 2012.

Ater the said eemption period, the Company would be liable or income ta at the rate o 10% or a period o 2 years and atthe rate o 20% thereon.

With the commencement o the ta eemption period the Company is liable to pay income ta on the taable income derivedrom other sources ecluding rom manuacturing operations.

Income ta payments made during the year represents payments made in respect o Economic Services Charge in accordancewith the Economic Service Charge Act No. 13 o 2006 and amendment thereon.

. Curr icm tax LKR LKRCurrent Ta Epense on ordinary Activities or the Year - 37,238,454Current Ta Epense on other Income or the year 813,730 -Under/(Over) Provision o current taes in respect o prior years (1,127,857) (10,472,123)

Drrd icm taxDeerred Taation Charge/(Reversal) (Note 14) - (12,735,228)Income ta epense reported in the Income Statement (314,127) 14,031,103

sam Cag equyDrrd icm tax rvral vr ax xm rd (Note 14.1) - 71,595,544icm ax x rrd quy - 71,595,544


28/36

8 A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


. DeFeRReD tAX LKR LKRBalance as at Beginning o the Year 18,979,577 103,310,349Provision / (Reversal) Made During the Year - (12,735,228)Provision / (Reversal) Made During the Year (14.1) - (71,595,544)

Balance as at the end o the Year 18,979,577 18,979,577

. Due to the t a eemption period or 5 years commencing w.e. 10th December 2007, the Deerred Ta has been computed up to9th December 2007 and the reversal arising has been recognised in the Income Statement. The deerred ta reversal that ar isesduring the ta eemption period amounting to Rs. 71,595,544/- was recognised under Retained Earnings in 2007/08.

RetiReMent BeneFit oBLiGAtions

Balac paym Balaca a Carg r durg a a

0.0.008 yar yar .0.009LKR LKR LKR LKR

Provision or Gratuity 78,381,791 13,888,428 (7,769,949) 84,500,27078,381,791 13,888,428 (7,769,949) 84,500,270

. Messrs. K.A.Pandit, Actuaries, carried out an actuarial valuation o the dened benet plan - gratuity on 31st March 2009.Appropriate and compatible assumptions were used in determining the cost o retirement benets. The principal assumptionsused are as ollows:

009 008Discount rate assumed (%) 9% 9%Further salary increase (%) 8% + salary scales 8% + salary scalesMethod o actuarial valuation Projected Unit Cost method Projected Unit cost method

. tRADe AnD otheR pAYABLes 009 008LKR LKR

Trade Payable - Related Parties (16.1) 8,968,261 49,240,527- Other 256,044,740 372,898,507

Other Paybles - Related Parties (16.2) 236,495,850 169,974,804Sundry Creditors including Accrued Epenses 147,269,079 104,596,062

648,777,931 696,709,900

. trad Du Rlad par Rla Piramal Glass Limited - India Parent Company 8,968,261 49,240,527

8,968,261 49,240,527

. or paybl - Rlad par Rla Piramal Glass Limited - India Parent Company 236,495,850 169,974,804

236,495,850 169,974,804

. DiViDenDs pAYABLe 009 008LKR LKR

Unclaimed Dividends 10,881,132 10,600,99810,881,132 10,600,998

. Dvdd pad 009 008LKR LKR

Declared and paid during the yearFinal dividends or 2008 - Rs. 0.02 per share (2007 - Rs.0.15 per share) 19,001,722 83,132,507

8. CAsh AnD CAsh eQUiVALents 009 008

8. Favurabl Ca ad Ca equval Balac LKR LKRCash and Bank Balances 17,254,280 30,092,522

17,254,280 30,092,522

8. Uavurabl Ca ad Ca equval BalacBank Overdrat (Note 12) (298,308,297) (304,425,331)Cash and cash equivalents or the purpose o Cash Flow Statement (281,054,017) (274,332,809)


29/36

9A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


9. otheR opeRAtinG inCoMe 009 008LKR LKR

Income rom Investments - Quoted 90,160 75,366Gain on Sales o Fied Assets 52,712,168 -

Interest Income 369,263 4,292,12053,171,591 4,367,486

0. FinAnCe Cost 009 008LKR LKR

Interest Epense on Overdrats 55,724,561 44,933,221Finance Charges on Lease Liabilities 207,616 297,974Debenture Interest - 3,497,679Interest Epense on Short Term Loans 151,953,405 15,374,678Interest Epense on Project Loan 450,812,671 98,828,690

658,698,253 162,932,242

. pRoFit/(Loss) BeFoRe tAX Stated ater Charging/(Crediting) 009 008LKR LKR

Including in Cost of Sales

Depreciation 324,948,916 128,835,040Personnel Costs including the ollowing;

- Dened Benet Plan Costs -Gratuity 11,114,249 11,841,272- Dened Contribution Plan Costs - EPF & ETF 12,401,226 5,692,746

Including in Administration Expenses

Directors Fees and Emoluments 28,321,427 17,826,401Auditors Remuneration - Fees and Epenses 613,931 539,500Technical Fee* 72,773,868 91,647,025Depreciation 5,381,189 9,923,213

Personnel Costs including the ollowing;- Dened Benet Plan Costs -Gratuity 2,774,179 2,159,290- Dened Contribution Plan Costs - EPF & ETF 2,242,595 1,691,084

Donations 521,428 108,000Echange (Gain) / Loss (7,900,055) 2,772,143

Including in Selling and Distribution Costs

Advertising Costs 252,086 109,979Allowance or Doubtul Debts 27,918,746 13,351,890

Technical Fee represents the amount payable to Piramal Glass Limited - India or the technical advises and assistance providedduring the year as per the agreement entered into between the two companies. As per the agreement, provisions have beenmade in the books o account o the Company or the years ended 31 March 2009 and 31 March 2008 accordingly.

. eARninGs/(Loss) peR shARe

. Basic Earnings/(Loss) Per Share is calculated by dividing the net prot/(loss) or the year attr ibutable to ordinary shareholdersby the weighted average number o ordinary shares outstanding during the year. The weighted average number o ordinaryshares outstanding during the year and the previous year are adjusted or events that have changed the number o ordinaryshares outstanding, without a corresponding change in the resources such as a bonus issue.

. The ollowing refects the income and share data used in the basic Earnings/(Loss) Per Share computations.

Amu Ud a numrar: 009 008LKR LKR

Net Prot/(Loss) Attributable to Ordinary Shareholders or basicEarnings/(Loss) Per Share (260,935,410) 35,142,453

009 008 numbr ordary sar Ud a Dmar: Number Number

Weighted Average number o Ordinary Shares in issue 950,086,080 755,083,844


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0 A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9


. CoMMitMents AnD ContinGenCies

. Caal exdur Cmmm The Company has capital commitments or acquisition o Property, Plant and Equipment incidental to ordinary course o business

as ollows. 009 008

LKR M. LKR M.Contracted but not provided - 360Authorized by the Board, but not contracted or - 200

- 560

. Assets pLeDGeDThe ollowing assets have been pledged as security or liabilities.

Carryg Amu pldgdnaur a naur Lably 009 008 icludd udr

LKR M. LKR M.Immovable Properties First / secondary Mortgage 4,461 3,875 Property, Plant

or Loans and Borrowings & Equipment4,461 3,875

. eVents oCCURRinG AFteR the BALAnCe sheet DAte There have been no material events occurring ater the Balance Sheet date that require adjustments to or disclosure in the

nancial statements.

. ReLAteD pARtY DisCLosUResDuring the year the Company entered into transactions with the ollowing Related Parties.

. traac w Gru Cma009 008

nam Cmay Rla LKR LKR

Piramal Glass Limited - India Parent Companynaur traacPurchasing o bottles 44,392,475 100,958,005Purchase o Bottle - In transit - 6,991,497Technical Fees 72,773,868 91,647,025

. The amounts payable to the above related party as at 31st March 2008 and 31st March 2009 are disclosed in Notes 16.1 and 16.2.

. traac w Drcr/ Ky Maagm prl * 009 008LKR LKR

Emoluments and Fees Including Other Benets 28,321,427 17,826,401tal cma ad ky maagm rl 28,321,427 17,826,401

* Key management personnel includes the Board o Directors and the Eecutive Director o the Company.


31/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

. stoCK eXChAnGe ListinGIssued Ordinary Shares o Piramal Glass Ceylon PLC are listed with Colombo Stock Echange o Sri Lanka.

. oRDinARY shARe hoLDeRs As At .0.009

Frm t n. hldr n. sar % 1 1,000 1,230 653,004 0.07

1,001 5,000 7,766 18,115,115 1.915,001 10,000 1,000 8,035,753 0.85

10,001 50,000 1,165 27,825,872 2.9350,001 100,000 244 18,693,356 1.97

100,001 500,000 261 56,707,604 5.97500,001 1,000,000 25 18,276,837 1.92

Over 1,000,001 43 801,778,539 84.3911,742 950,086,080 100.00

Cagr sar hldr

Local Individuals 11,493 168,939,685 17.78Local Institutions 197 184,739,856 19.44Foreign Individuals 47 29,619,958 3.12Foreign Institutions 5 566,786,580 59.66

11,742 950,086,080 100.00

Percentage o shares held by the public - 43.54%

. 0 LARGest shARehoLDeRs

nam sarldr n. sar %

1 Piramal Glass Limited - India 536,331,880 56.451

2 Employees Provident Fund 39,857,142 4.1953 DFCC Vardhana Bank Ltd / Mr.R.F.T. Perera 28,510,000 3.0014 Mr. L.M.S.H. Alnaqib 25,000,000 2.6315 Elgin Investments Limited 23,191,700 2.4416 Deutsche Bank AG-National Equity Fund 17,811,485 1.8757 DFCC Bank A/C 1 12,981,852 1.3668 Sri Lanka Insurance Corporation Limited -General Fund 10,539,428 1.1099 Eagle Insurance Company Limited A/C 3 9,000,000 0.947

10 Mr. D.K. Subasinghe and Mrs. S.N. Subasinghe 8,000,000 0.84211 J.B. Cocoshell (Pvt) Ltd 7,481,500 0.78712 Bangkok Glass Industry Company Limited 6,280,000 0.66113 Freudenrorg Shipping Agencies Limited 5,156,571 0.54314 Mr.A.J. Tissera 5,050,000 0.53215 Mr.M.K. Chandrasiri 5,000,000 0.52616 Alpe Marine (Pvt) Ltd 5,000,000 0.526

17 Deutsche Bank AG-Namal Growth Fund 4,336,457 0.45618 Dr.T. Senthilverl 4,150,000 0.43719 The Ceylon Chamber o Commerce A/C 2 4,000,000 0.42120 Rosewood (Pvt) Limited 3,139,000 0.330

760,817,015 80.077Other Shareholders 189,269,065 19.923

950,086,080 100.000

. shARe pRiCe Market price per share or the year

Highest Price - Rs.2.70 Date - 28.04.2008Lowest Price - Rs.1.20 Date - 30.03.2009Closing Price - Rs.1.30

shARehoLDeRs and Investor Information


32/36

A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

Marc 000 00 00 00 00 00 00 00 008 009LKR.000 LKR.000 LKR.000 LKR.000 LKR.000 LKR.000 LKR.000 LKR.000 LKR.000 LKR.000

tradg RulRevenue 690,094 787,661 844,665 920,209 1,261,291 1,274,173 1,555,783 1,857,186 2,014,128 2,936,155Prot/(Loss) beore Ta 21,789 80,248 140,628 140,959 159,752 338,558 272,558 184,082 49,174 (261,250)

Ta Epense/(Reversal) - 15,183 50,947 46,030 46,948 106,547 102,458 80,076 14,031 (314)Prot/(Loss) ater Ta 21,789 65,065 89,681 94,928 112,804 232,011 170,129 104,006 35,142 (260,935)

shARe CApitALAnD ReseRVesShare Capital 277,108 277,108 277,108 277,108 277,108 554,217 554,217 554,217 - -Share Premium 497,148 497,148 497,148 497,148 497,148 220,039 220,039 220,039 - -Stated Capital - - - - - - - - 1,526,407 1,526,407Other Reserves (95,762) (30,696) (24,148) 34,757 47,801 163,427 251,569 338,949 933,730 749,651

Shareholders Funds 678,494 743,560 750,108 809,013 822,057 937,683 1,025,825 1,113,205 2,460,137 2,276,058

Assets LessLiABiLities

Current Assets 429,478 535,297 496,143 512,898 599,861 667,724 774,195 1,188,304 1,462,651 1,747,296Current Liabilities (161,131) (246,723) (117,384) (276,358) (257,760) (355,987) (466,535) (636,205) (1,947,622) (2,786,489)

Net Current Assets(Liabilities) 268,347 288,574 378,759 236,540 342,101 311,737 307,660 552,099 (484,971) (1,039,193)Long Term Assetsand Investments 560,723 567,883 518,420 884,565 848,040 1,038,296 1,001,577 1,194,012 4,888,629 5,279,281

Total Assets LessCurrent Liabilities 829,070 856,457 897,179 1,121,105 1,190,141 1,350,033 1,309,237 1,746,111 4,403,658 4,240,088

Long Term &Deerred Liabilit ies (150,576) (112,897) (147,071) (312,692) (368,084) (412,350) (283,413) (632,906) (1,943,521) (1,964,031)

n A 678,494 743,560 750,108 809,013 822,057 937,683 1,025,825 1,113,205 2,460,137 2,276,057

Ra & or irma

Earning/(Loss) Per Share 0.78 2.35 3.24 3.43 2.04 0.45 0.31 0.17 0.05 (0.27)Dividend Per Share - - 3.00 3.00 3.60 0.18 0.15 0.03 0.15 0.02Market value per share 9.50 7.50 17.00 20.25 27.00 47.75 2.50 2.50 2.00 1.30Price Earning Ratio 12.17 3.19 5.25 5.90 13.24 11.40 8.06 14.71 40.00 (4.81)Interest Cover 1.89 7.32 25.74 19.02 7.00 13.56 9.57 8.06 1.22 0.60Current Ratio 2.66 2.17 4.22 1.85 2.33 1.88 1.66 1.87 0.75 0.63Liquid Ratio 1.24 1.21 2.27 1.13 1.32 1.01 0.93 1.29 0.51 0.35Total Debt/TotalAssets 0.31 0.33 0.26 0.42 0.43 0.45 0.43 0.53 0.61 0.68Gearing Ratio 0.23 0.11 0.04 0.23 0.20 0.20 0.07 0.41 0.96 1.25Net Asset per share 24.50 26.80 27.07 29.19 29.66 16.92 1.85 2.01 2.59 2.40

ten Year Financial Review


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A n n u a l R e p o r t 2 0 0 8 / 2 0 0 9

Earning Per share : Net Prot Ater Taation / Number o Shares

Dividend Per share : Dividends paid during the year / Number o Shares

Price Earning Ratio : Market Value as at year end / Earning Per Share

Interest Cover : Prot Beore Interest / Interest

Current Ratio : Current Asset / Current Liabilities

Liquid Ratio : (Current Asset - Stocks) / Current Liabilities

Total Debt/Total Assets : Total Liabilities / Total Assets

Gearing Ratio : Long Term Loans / Shareholders Fund

Net Asset per share : Shareholders Funds / Number o Shares

GLossARYof Financial Terminology


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notiCe of Meeting

NOTICE IS HEREBY GIVEN that the Fi ty Fourth (54th) Annual General Meeting o the Company will be held on the 21st

o July 2009, at 10.30 am at Mount Lavinia Hotel or the ollowing purposes.

1. To receive and consider the Annual Report o the Board and the Financial Statements o the Company or the yearended 31st March 2009, together with the Report o the Auditors thereon.

2. To re-appoint Messrs, Ernst & Young, Chartered Accountants as Auditors o the Company until the next Annual

General Meeting and to authorize the Directors to

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Ceylon Glass Company

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