Samson International PLC: Annual Report 2013/14

SamSon international PlC annual report 2013/14
i
Evolution of the Company
Samson International Plc is a subsidiary of the DSI Samson Group (Pvt) Ltd. The parent Company was
founded in 1962. DSI Samson Group has an export turnover of more than 1% of the country’s total export
turnover and has a workforce of 8,500 employees. The majority of their factories are located in remote rural
areas. Samson International PLC is one of them.
Samson International Plc started its business on 14th October 1988 at a time the open economic policies
had got firmly established in the country with a great tendency among the business community to commence
export-oriented projects. Accordingly, this Company was intended to produce rubber-based products largely
for export markets.
Samson International Plc now manufactures and exports molded and extruded rubber products such as hot
water bottles, jar sealing rings, rubber mats, rubber floorings, beadings and mud flaps mainly to international
markets. Samson International Plc has 324 employees and the main factory is situated at Bogahagoda, Galle.
Milestones
• 1988 – Samson International Ltd. was incorporated as a Private Company on
14th October, 1988
• 1992- Ordinary shares of the Company were listed in the Colombo Stock
Exchange and became a public quoted company as Samson International Plc
on 24th July, 1992
• 1994 - Was awarded the first “ ISO 9001: 2008 quality management
certificate” among the rubber-related product manufacturing companies in
Sri Lanka
• 2007- Invested in the first microwave continuous line machine in Sri Lanka.
(This is the only microwave machine in South Asia)
• 2009- Purchased all assets of Aksel Rubber Mat Company, Kalutara
• 2012 - Was awarded the Gold Export Award from the National Chamber of
Exporters of Sri Lanka
• 2013 – Was awarded the Gold Export Award from the National Chamber of
Exporters of Sri Lanka for the second consecutive year when the Company
celebrated its Silver Jubilee
• 2014- Purchased assets of Okta PVC Lanka (Private) Ltd., Baddegama, and
stepped into manufacturing PVC products
cOntents
Page
1) Financial highlights 01
2) Our Corporate Vision, Mission, Values and our Aim 02
3) Chairman’s review In English 03 - 06
4) Chairman ‘s review in Sinhala 07 - 09
5) Managing Director’s operational review 10 - 13
6) Corporate information 14 - 15
7) The Board of Directors 16 - 17
8) Profiles of Directors 18 - 19
9) Executive management 20 - 23
10) Management discussion & analysis 24 - 52
11) Corporate governance 53 - 58
12) Risk management 59 - 64
13) Report of the Board of Directors 65 - 70
14) Statement of Directors’ responsibilities 71
15) Audit Committee Report 72 - 73
16) Remuneration Committee Report 74
17) Financial Review 75 - 76
18) Auditor’s Report 77
19) Financial Statement 78 - 107
20) Sustainability Report 108 - 121
21) Global Reporting Initiative 122 - 126
22) Investor Information 127 - 130
23) Four-Quarter Financial Summary 131
24) Ten- year Economic Summary 132
25) Ten-year Financial Summary 133
26) Foreign Currency Financial Statement 134
27) Glossary of Financial Terms 135
28) Notice of the AGM 136
29) Direction to the venue of the AGM 137
30) Notes 138
31) Form of Proxy Enclosed
Profit before tax increased by 27% or Rs. 13.7mn
Finance cost decreased by 62% or Rs. 6.0mn
Financial investments increased by Rs. 50mn
Profit Before Tax (Rs. ‘000) Finance Cost (Rs. ‘000)
80,000 25,000
64,841
60,000 21,922
51,077 20,000
40,000
17,161
20,000 15,000
19,123
10,106
- 9,900
(7,608) 10,000
2009/10 2010/11 2011/12 2012/13 2013/14
(20,000)
(40,000) 5,000
3,780
(55,980)
(60,000)
-
(80,000) 2009/10 2010/11 2011/12 2012/13 2013/14
Net Assets Per Share (Rs.) Fixed Asset Turnover Ratio (Times)
140 6
5.31 5.45
120 5
117.00 4.95
102.87
100 104.00
91.75 4
88.27 7.71
80 3.44
3
60
2
40
20 1
- -
2009/10 2010/11 2011/12 2012/13 2013/14 2009/10 2010/11 2011/12 2012/13 2013/14
Samson international PLC Annual Report 2013/14

Financial
Highlights
2013/14 2012/13 Variance %
Operating Results
Revenue Rs. 000 952,561 973,858 (21,297) (2)
Profit before tax Rs. 000 64,841 51,077 13,764 27
Tax on profit Rs. 000 8,491 (4,438) 12,929 291
Profit after tax Rs. 000 56,350 55,515 835 1.5
Exports earnings in US $ 000 4,753 5,235 (482) (9)
Value additions Rs. 000 227,496 199,631 27,865 14
Interest cover times 18.15 6.15
ROCE % 12.5 13.8 (1.3)
Gross profit to Sales % 15.2 15.3 (0.1)
Value additions per employee Rs /month 58,512 55,085 3,427 6.2
Manpower Nos. 324 302 22 7.3
Financial Position
Dividend cover times 7.3 7.2
Current ratio times 2.37 2.39
Gearing % 6.8 13.2 (6.4)
Finance cost Rs. 000 3,780 9,900 (6,120) (62)
Financial Investments Rs. 000 50,354 - 50,354
Total assets Rs. 000 654,125 593,108 61,017 10.2
Cash generated from operations Rs. 000 136,204 17,785 118,419 666
Shareholder information
Dividend per share Rs. 2.00 2.00 - -
Market price per share - Closing Rs. 88.20 82.20 6.00 7
Earnings per share Rs. 14.64 14.43 0.21 1.5
Net assets per share Rs. 116.82 104.18 12.64 12
Number of shares issued Nos. 3,847,974 3,847,974 - -
Number of Shareholders Nos. 1,125 1,127 (2) (0.2)
Market capitalization Rs. 000 339,391 316,303 23,088 7
Shareholders’ Funds Rs. 000 449,558 400,904 48,654 12
Price earnings ratio times 6.02 5.69 0.33 5.8

1
Our cOrpOrate
Vision, Mission, Values and aim
Our Vision
To be a leading Polymer Product manufacturer in the region.
Our Mission
To become a versatile manufacturer of diversified polymer products in the

global market by utilizing modern technology while providing optimum
value to Stakeholders.
Our Values
Contributing to the Socio-economic development,

Respecting national and religious heritage,
Protecting and safeguarding our environment,
Enhancing disciplined human resources based on the family concept.
Our Aim
Aiming at versatility in all polymer products…
During the last 25 years, we have maintained a benchmark for having arguably the widest
product range among the rubber products manufacturing companies in Sri Lanka.
We are moving on beyond our Silver Jubilee, determined to expand our polymer products
range and invest in modern technology aimed at versatility.
We also continue to be committed to contribute to the national economy, serving the rural
areas in the Southern Province by using local raw materials, opening direct employment
avenues for neighbouring villages, generating foreign exchange and nurturing our
indigenous heritage as a socially responsible corporate citizen while aiming at versatility and
moving forward in the direction of our Vision.

2
cHairMan’s
review
“It is observed that currently, more than half of
Sri Lankan exports are still centered on the US
and EU markets. We would be severely affected
if the economies in both the US and EU decline.
To minimize the risk, the right mixture of exports
has to be identified. In view of this, we all have to
develop the Chinese, Japanese and South Asian
markets… “
I t is my pleasure to present the Annual Report of Samson

International Plc for the year ended 31st March 2014. As
you are aware, Samson International Plc was incorporated on
14th October 1988 and we celebrated our silver jubilee this
financial year.
Global Economic outlook

In 2013, the global economic growth was estimated at 3
percent which is a marginal drop from 3.2 percent recorded
in 2012. As projected in the IMF forecast, global growth will
strengthen from 3 percent in 2013 to 3.6 percent in 2014 and
3.9 percent in 2015.
World Economic Output Growth (%)

%
6
5.2
5
3.9 3.9
4 3.6
3.2
3
3
0
2010 2011 2012 2013 2014 2015
Source : IMF World Economic Outlook Report of April 2014

3
cHairMan’s statement (contd...)
%
According to IMF World Economic Outlook Report of April 16 Economic Growth (%)
Source : World Economic
Emergind and Devoloping Asia
14 Outlook Apr 2014 India
2014, the USA, Euro area ( Germany, France, Italy and Spain), 12
China
10
Japan, UK and Canada have advanced economies. The 8
6
economic activities in these countries struggled in the first half 4
2
but grew firmly in the second half of the year and recorded 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-2
1.4 percent growth in 2013 compared to 1.3 percent in 2012. -4
In these countries, growth is expected to increase to about -6

2.2 percent in 2014. Key drivers of such growth will be a
reduction in fiscal tightening (except in Japan) while pursuing When we look at the foreign currency trends, for some
accommodative monetary measures . Growth will be strongest currencies the foreign exchange market was highly volatile. The
in the United States at about 2.8 percent while in the Euro area Japanese Yen recorded 18.1 percent depreciation against the
dollar where currencies such as the Euro, Sterling Pound and
growth is projected to be positive but varied area depending on
the South African Rand signifi cantly appreciated against the
the extent of debt and financial fragmentation.
dollar. Inflation remained stable in many economies in 2013
% while a few developed economies faced deflationary pressures.
6 United States
Economic Growth (%)
Source : World Economic Japan
Outlook Apr 2014
Sri Lankan Economic Outlook

4 Advanced Economies
2
The Sri Lankan economy recorded a 7.3 percent growth in
0
2005 2006 2007 2008 2009 2010 2011
20 11 2012 2013 2014 2015 2013 while inflation remained at single digit levels for the fifth
-2
consecutive year, steadily declining to mid–single digit levels
-4
by the end of 2013. Though remaining at a low level of 4.4
-6

percent in 2013, the unemployment level recorded a slight
increase of 0.4 percent compared to the previous year due to
%
new job seekers entering the labour market. Inflation trended
6 Economic Growth (%)
Euro Area
Source : World Economic
Outlook Apr 2014 France downward in 2013, averaging 6.9% in the year. Economic
4 Germony
growth was broad based with contributions from all sectors,

2
supported by favorable weather conditions.
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-2
The Sri Lankan economy was projected to accelerate further
-4
in the medium term to an annual growth rate of 8 percent.
-6
Source : IMF World Economic Outlook Report of April 2014 This economic growth target is expected to be supported by
infrastructure expansion in transport, telecommunication, ports
Economic activity in many emerging market economies ( i.e.,
and growth of tourism. The services sector made the largest
China, India, Indonesia, Malaysia, Philippines, Thailand and
contribution to growth in 2013. Rapid growth in wholesale
Vietnam) has been disappointing in a less favorable external
and retail trade, hotels and restaurants, transport, banking,
financial environment, although they continue to contribute
insurance and real estate enhanced performance in the large
more than two-thirds of global growth. Some emerging
service sector to 6.4% from 4.6% a year earlier. Industry grew
economies slowed in growth due to weaker domestic demand
by 9.9%, slightly less than a year earlier, as slower growth
than anticipated and the growth recorded by emerging
in mining and quarrying and in construction offset a pickup
economies was 4.7 per cent, which is a 0.2 per cent drop
in manufacturing and utilities. Favourable weather helped
from the previous year. According to IMF, in China growth is maintain agriculture growth at a relatively favourable 4.7%.
projected to remain at about 7.5 percent in 2014. When we look further, food infl ation was at about 12% during
the first quarter as the drought late in 2012 had disrupted
domestic food supplies, but then dropped markedly to 0.9%
in February 2014. Non-food infl ation was also lower over the
year but increased to 7.1% in January 2014.
4
%
12.0 Industry Performance
The rubber industry of the country faced two major challenges
10.0
during the year. Firstly, the significant decline in production was
8.0
due to a drop in tapping days during the adverse weather in the
6.0
fi rst nine months. Rubber production declined by 14.2 percent
4.0 compared to 2012. Secondly, declining world market prices of
2.0 natural rubber due to high stocks levels maintained in China
0.0 and Japan, which affected rubber prices in Sri Lanka too.
2009 2010 2011 2012 2013
Agriculture Industry Services GDP
Despite these challenges the output of rubber products
Source :Central Bank Annual Report 2013
increased at a moderate rate of 4.6 percent with the increase
in international demand for rubber-based products in the
The 2013 fiscal deficit is estimated at 5.8% of GDP in keeping
latter part of 2013. Earnings from exports of rubber products
with the target. The target was achieved notwithstanding
recorded a 3.3 percent growth in 2013, which was the second
unexpectedly weak revenues by reducing current expenditure.
largest contributor to the growth in industrial exports of the
Capital expenditure was largely sustained but was again
country.
slightly below the target of 6% of GDP. The ratio of
government debt to GDP fell to 78.4% in September 2013
Future prospects for the industry will be more favourable with
from 79.1% in 2012.
the government’s master plan in respect of the rubber industry
looking to generate USD 5 bn worth of rubber exports by
There was a turnaround in external demand during the
2022. In achieving this goal we could expect the authorities
second half of the fi nancial year 2013/14 with the gradual
to extend their support towards improving testing laboratory
improvement in the advanced economies including the United
facilities, developing infrastructure and regulating the industry.
States and the European Union, which are Sri Lanka’s major
export destinations. Currently, more than half of Sri Lankan
exports are still centred on the US and EU markets. We would
Company’s Performance
During the year ended 31st March 2014, the Company
be severely affected if the economies of both the US and the
recorded a turnover of Rs.953mn as against Rs. 974 mn in
EU decline. To minimize the risk, the right mixture of exports
the previous year. The reduced turnover was caused by the
has to be identified. In view of this, we have all to develop the
significant depreciation of the currency of India, South Africa
Chinese, Japanese and South Asian markets.
and Japan, our customers. However, the profit before taxation
in the current year is Rs. 64.8 mn as compared to Rs 51.0 mn
With the fl exible exchange rate policies of the government
in the previous year, which is an increase by 27%.
the rupee remained less volatile against the dollar and the
We continue to manufacture to the international standards
currencies of some of the major emerging economies. By the
required of many ISO certified products. In the future, we
end of 2013, the rupee had exchanged at a rate of 130.75
will focus on widening our global presence with a wide
against the US dollar recording a depreciation of 2.75 percent
product range. We will continue to focus on high contributing
compared to the previous year.
products. Wastage and scrap levels will be further minimized
In 2013, many key infrastructure projects were completed,
with proper controls. We need to further improve our quality
namely, the country’s second international airport, harbour
levels and delivery times from their current position in order to
and port development projects, the Expressway and highway
differentiate our products from Chinese products.
development projects, the Northern railway project and power
projects, with some more due to be completed in the future.

5
I am happy to inform you that Samson International Plc
Appreciation
purchased the assets of Okta PVC Lanka ( Pvt ) Ltd. on 14th
As we complete our Silver Jubilee this year, I would like to
July 2014 by moving forward in the direction of our Vision. We
especially thank our invaluable and loyal customers. Further, I
will be able to widen our product range further with the PVC-
would like to thank the Board of Directors, the management
related products.
and every employee of the company for their dedication and
commitment extended to the company.
Moving forward in the I would also like to thank our bankers and all our suppliers for
their support. We deeply appreciate our shareholders for their
direction of our Vision faith in our Company and we assure them of a bright future.
Dividends
The Board of Directors decided to recommend a dividend of
Rs. 2.00 per share for the year under review ( Rs. 2.00 per share
in 2012/13).
Turnover Last Ten Financial Years (Rs.Mn) Dr D. S. Rajapaksa

1200 Chairman
1000
Colombo
800
600
1st August 2014
400 Turn Over (Rs. Mn)
Tu
200
0
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

6
ManaGinG
Director’s Operational review
“During the year we improved many aspects of
our operational effectiveness through investing
in advanced technology, improving the working
capital, minimizing waste, maintaining higher levels
of capacity utilization in most of the products and
controlling all overheads… “
W e, Samson International Plc, cater to sophisticated

international markets as well as the local market.
However, we continued to maintain satisfactory profit levels
in the recent past notwithstanding macroeconomic pressures,
which were challenges to face in the face of slightly lower
global economic growth (3.0 % in 2013 compared to 3.2%
in 2012), adverse movements in exchange rates of some
currencies that we dealt with ( India, South Africa and
Japan) and continuous increases in energy prices.
However, in a more positive light, an increase in exports
as well as local demand could be expected as advanced
economies are picking up, domestic demand in emerging
economies is increasing, and the rupee continues to be
stable against some major currencies and continues domestic
demand in infrastructure developments.
Profit Before Tax (Rs.Mn)
PBT (Rs.Mn)
P
PB
80
60
40
20
0
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
-20
-40
-60
-80
With the Katunayaka-Colombo highway now open , our

customers can reach us within two hours from the Katunayaka
International Airport. Although our factory is located 100
km from Colombo in the South of Sri Lanka , the Southern
Expressway has brought us closer to Colombo. Anyone can
reach us now in a one-hour journey from Colombo and 15
10
ManaGinG Director’s Operational review (contd...)
minutes from Matara. The government’s massive infrastructure 1994, we have enjoyed ISO status. Further, we have been
projects certainly help our business. awarded British Standard ( BS 1970:2006), TUV Certifi cation
and FSC Certifi cation for hot water bottles. We also have the
Fire Retardant Certifi cate for rubbers mats and fl oorings and
We are planning to become the Electrical Resistant Certifi cate for rubber mats. All raw
materials are used to manufacture our products by conforming
bigger and bigger to the Reach regulations of Europe.
year by year We are the fi rst

During the year we improved many aspects of operational rubber- related product
effectiveness by investing in advanced technology, improving
our working capital, minimizing waste, maintaining higher manufacturing company to
levels of capacity utilization and controlling all overheads.
In the financial year under review, we invested in a fully receive the ISO 9001:2008
automated fl ash less press for V strap, a mill , another press
line for hot water bottles and an additional cutter for jar Quality Management
sealing rings. We continue to invest more and more in
Research & Development. Our Group signed an agreement Certificate
with the Polymer Unit of the University of Moratuwa for
research activities for 3 years by investing Rs. 15 mn from Above all, our main focus is contributing to the rural
which the major contribution will come to Samson Intentional communities by offering them many more employment
Plc. We are looking forward to the future with much positive opportunities and uplifting their living standards. We as a
hope. We will continuously engage in product development, company are committed to protecting our cultural heritage
process automation and creating synergies. We are planning and customs. Our years of experience prove that customs and
to become bigger and bigger year by year. rituals tie generations with bonds that cannot be broken.
Our working capital cycle is as follows: We are pleased to inform you that your Company received a
couple of awards during the year: fi rstly National Chamber
2013/2014 2012/2013 Variance
of Commerce Gold Awards for the last two consecutive years
Debt Collection Period (Days) 65 79 (14)
in recognition of our export growth and volume; secondly a
RM Holding Period (Days) 23 18 5 Certifi cate of Recognition awarded by the Institute of Chartered
WIP Holding Period (Days) 14 11 3 Accountants was received for last year’s Annual Report in the
manufacturing category.
FG Holding Period (Days) 19 58 (39)
Credit Settlement Period (Days) (54) (38) (16)

As you are aware, Samson International Plc produces more
Cash Operating Cycle (Days) 67 128 (61) than 40 types of rubber products under four different
Operating Cycle (Days) 56 87 (31) product segments.
Our measures to improve quality in compliance with a) Medical Items: These include hot water bottles, finger
international standards and continuous in-house and exercises and power web.
overseas laboratory tests will ensure a solid market share b) Food Grade Items: These include jar sealing rings.
for our products. We have achieved signifi cant international c) Household & Industry Items: This segment includes
recognition in terms of product quality. We are the fi rst rubber mats ,rubber flooring and rubber hoses,
rubber- related product manufacturing company to receive continuous rubber rolls, bath mats, staircase mats, vehicle
the ISO 9001:2008 Quality Management Certifi cate. Since
11
mats, entrance mats, industry mats and also specialty mats The segmental profit analysis is given below.
such as fire retardant mats, oil resistant mats, antistatic
Operating Profit (Rs. Mn.)
mats and fabric mats. 35
4) Other products: These include beadings, footwear 30

30 31
components, road humps, mud flaps, D- fenders and
25
other items which do not belong to the above three
20
categories.
15
2013
2013/14
12 2012/13
10
10
9
5
5
4 3
-
Food Grade Items Medical Items Others Household Items
Turnover Mix in (Rs. Mn.)
2013/14 2012/13
209.49 213.67
330.38
348.12
286.66 291.25
138.55
108.27
Medical Items
Me House Hold Item
Ho
Food Grade Item

Foo other
oth
Business Segment Medical Items Food Grade Items Household Items Others Company
2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Export Sales 208,861 212,328 284,583 285,912 67,717 99,166 52,092 58,635 613,250 656,041
Local Sales 635 1,343 2,081 5,338 40,561 39,389 296,034 271,747 339,311 317,817
209,496 213,671 286,664 291,250 108,275 138,555 348,126 330,382 952,561 973,858
Profit/(Loss) on Fixed Asset Disposal 82 291 81 291 88 292 81 292 332 1,166
Other Income 472 328 472 214 472 24 535 16 1,951 582
210,050 214,290 287,217 291,755 108,835 138,871 348,742 330,690 954,844 975,606
Segmental Expense (200,558) (201,821) (256,869) (261,225) (105,064) (136,291) (344,589) (322,209) (907,080) (921,546)
Operating Profit/(Loss) 9,492 12,469 30,348 30,530 3,771 2,580 4,153 8,481 47,764 54,060

12
We had a sales growth of 7% from local sales. However, Currently we produce more than 40 products out of rubber
export sales decreased by 6.5 %. During the year overheads using moulding , extruding, microwaving and injection
were controlled effectively. Finance costs decreased by 62% moulding. Your company has now reached versatility in
from Rs. 9.9 mn in the previous year to Rs. 3.7 mn in the manufacturing rubber products. In the future we will focus
current fi nancial year. We invested Rs 50.3 mn in Treasury Bills, on reaching versatility in other polymer products such as
Tax free Debentures and Fixed Deposits this year. Administration PVC too. I am happy to inform you that Samson International
overheads and selling and distribution overheads too are under Plc purchased the assets of the Okta PVC Lanka ( Pvt ) Ltd.
control. Exchange gain income increased from Rs 6.1 mn in on 14th July 2014 by moving forward in the direction of
the previous year to Rs 17.7mn in the current year, which was our Vision. We will be able to widen our product range and
mainly due to the favourable exchange rate of the Euro that turnover further when we add to it PVC-related products.
prevailed during the year. However, we also lost some revenue
due to unfavorable exchange rates that prevailed in Japan, I would like to thank all the members of management and
India and South Africa in the same period. The net profit every employee of the company for their dedication and
before tax increased by 27% to Rs. 64.8 mn in the current commitment extended to the company during the year.
fi nancial year compared to Rs.51.0mn in the previous year.
We invested Rs 50 mn
D. K. Rajapaksa
in Treasury Bills, Tax free Managing Director
Colombo
Debentures and Fixed 1st August 2014
Deposits this year
It is important that we maintain excellent rapport with our

neighbors, villagers and employees. At present our rapport
with our neighbors and villagers seem to be constructive and
improving. Our relationship with our employees too seems
sound and pleasant at present.

13
cOrpOrate
information
Name of the Company : Samson International Plc
Legal Form : A public quoted company with limited liability, incorporated on 14th October 1988 and re-
registered under the Companies Act No. 7 of 2007 on 3rd September 2008.
Company Registration number : PQ 192
Stock Exchange listing : The ordinary shares of the Company were listed in the Colombo Stock Exchange of Sri Lanka
on 24th July 1992 and the Company was converted to a public quoted company.
Principal line of business : Manufacture and export of rubber-based products for the international and local markets.
Registered Office : No. 110, Kumaran Ratnam Road , Colombo 02.

Te: (011) 4728800, Fax (011)2440890
Email: info@dsisamson.com
Galle Factory : Akuressa Road, Bogahagoda, Galle.

Te (091) 3094469-72, Fax (091) 2224036
Email: info@samsonint.com
Kalutara Factory : No. 57/B, Fullerton Industrial Zone, Nagoda, Kalutara.

Te (034) 5622688
Baddegama Factory : Gilcroft Estate, Kiribathwila, Ampegama, Baddegama

(Purchased on 14th July 2014)
Te (091) 2293801, Fax (091) 2233020
Directors : Dr D. S. Rajapaksa (Chairman)

Mr D. K. Rajapaksa (Managing Director)
Mr D. R. Rajapaksa
Mr D. M. Rajapaksa
Mr C. Cumaranatunge
Mr R. H. Nandajeewa (Resigned on 8/8/2013)
Mr G. H. A. Wimalasena
Mr T. K. Bandaranayake
Mr B. L. P. Jayawardena
Mr D. G. P. S. Abeygunawardana (Director/ General Manager) Appointed - on 8/8/2013 as Director
Secretaries : P W Corporate Secretarial (Pvt) Ltd.

No. 3/17, Kynsey Road, Colombo 08
Parent Company : DSI Samson Group (Pvt) Ltd.
Auditors : Messrs HLB Edirisinghe & Company

Chartered Accountants,
No. 45, Braybrook Street, Colombo 02.
Bankers : Bank of Ceylon

Hatton National Bank
Commercial Bank
Nation Trust Bank
DFCC Vardhana Bank
People’s Bank

15
tHe BOarD of Directors
1 4
1. Dr. D. Samson Rajapaksa
5
3 2 6
7 8 2. Mr. D. Kulatunga Rajapaksa
3. Mr. D. Ranatunga Rajapaksa
4. Mr. D. Mahinda Rajapaksa

16
5. Mr. G. H. Ananda Wimalasena
6. Mr. Tissa K. Bandaranayake
7. Mr. B. Lalith P. Jayewardene
8. Mr. D. G. Priyantha S. Abeygunawardana
Note : Mr. C. Cumaranatunga was absent as he is based in Germany

17
prOFiles of the Directors
1. Dr. D. Samson Rajapaksa 4. Mr. D. Mahinda Rajapaksa
M.B.B.S (Cey), F.R.C.O.G. (U.K.), M.S. (S.L.) B.Sc Eng. (Hons), MBIM, CEng, MIMechE (UK), FIE (SL)
Chairman Non -Executive Director
Dr Samson Rajapaksa is a medical practitioner by profession Mr. Mahinda Rajapaksa is a Chartered Engineer by profession
and counts over three decades of experience with DSI Group. and has more than five years’ experience working as an
He serves as the Chairman of DSI Holdings (Pvt) Ltd. and is the Engineer in UK and Sri Lanka.
Chairman of DSI Samson Group (Pvt) Ltd. He is also a Director
of D. Samson Industries (Pvt) Ltd., D. Samson and Sons (Pvt) In addition to being a Director of Samson International Plc,
Ltd., and Samson Reclaim Rubbers (Pvt) Ltd. Mr. Mahinda Rajapaksa is the Managing Director of Samson
(Exports) Ltd. and is a Director of DSI Samson Group (Pvt) Ltd.,
In addition to being on the DSI Samson Group (Pvt) Ltd. D. Samson Industries (Pvt) Ltd. and several other subsidiary
Board, he is a Consultant Obstetrician and Gynecologist in the companies of the DSI Samson Group.
private sector.
Mr. Mahinda Rajapaksa has over 35 years of managerial
Dr. Samson Rajapaksa serves as a Committee Member of the experience within the DSI Samson Group.
Young Members Buddhist Association and of the Sri Lanka
Medical Library. 5. Mr. Chula Cumaranatunge
M.Sc. (Econ) (Lond.)
2. Mr. D. Kulatunga Rajapaksa Non -Executive Director
B.Sc (Hons) (Cey)
Managing Director Mr Chula Cumaranatunge has over 28 years’ experience in
the rubber industry.
Mr Kulatunga Rajapaksa is the Managing Director of DSI
Samson Groups (Pvt) Ltd. He has over 48 years of experience Mr Chula Cumaranatunge is also a Director of Glovetex (Pvt)
in the manufacture of footwear and rubber products. Ltd. and of Central Rubber (Pvt) Ltd.
He has served as a Council Member of several universities. 6. Mr. G. H. Ananda Wimalasena

Mr Kulatunga Rajapaksa is a past president of the National B.Sc, Higher Diploma in Management (London College of
Chamber of Exporters of Sri Lanka and also was the past Printing, U.K.)
president of the Sri Lanka Association of Manufacturers and Independent, Non –Executive Director
Exporter of Rubber products and is the current president of
the Sri Lanka Footwear & Leather Products Manufacturers Mr Ananda Wimalasena was the Founder-Managing Director
Association. of Asiri Hospital Group of Companies from 1980 to 2006.
He is also the Chairman of the Wellassa Rubber Company Mr Ananda Wimalasena has experience and extensive
Limited and also a Director of the Mawbima Lanka exposure in Management and Health services. He also serves
Foundation. as a Director of Hemas Hospitals (Pvt) Ltd. He is Chairman in
ITMC (Pvt) Ltd. and also Chairman of the Risk Management &
3. Mr. D. Ranatunga Rajapaksa Audit Committee of Hemas Hospitals (Pvt) Ltd.
Dip. In Technology
Non- Executive Director 7. Mr. Tissa K. Bandaranayake
B.Sc. (Cey), FCA
Mr Ranatunga Rajapaksa is the Managing Director of Independent, Non –Executive Director
Samson Rubber Industries (Pvt) Ltd., a company that
specializes in the designing, manufacturing and exporting Mr Tissa Bandaranayake has more than 46 years commercial
of tyres and tubes. He is also the Managing Director of and professional experience and was a Senior Partner of Ernst
Mountspring Water (Pvt) Ltd., Samson Reclaim Rubbers Ltd. & Young from where he retired after 27 years, having serviced
Samson Rubber Products (Pvt) Ltd., Samson Bikes (Pvt) Ltd., a large portfolio of clients, both local and multinational in
DSI Tyre India (Pvt) Ltd. and several other subsidiary companies various industries.
of the DSI Samson Group.
He currently serves as a Director Laugfs Gas Plc, Overseas
Mr. Ranatunga Rajapaksa plays a major role in expanding Realty (Ceylon) Plc, Renuka Holdings Plc, Renuka Shaw
the Group’s overseas business and has more than 43 years of Wallace Plc, Micro Holdings (Pvt) Ltd., Harischandra Mills
experience with DSI Group. Plc, Waters Edge Ltd. and Nawaloka Hospitals Plc. He also
18
prOFiles of the Directors (contd...)
serves as an Advisor / Consultant to the Board of Directors of 9. Mr. D. G. Priyantha S. Abeygunawardana

Noritake Lanka Porcelain (Pvt) Ltd. MBA, LLM, LLB, FCA, FCMA, FCCA, MCIM, Attorney-at- Law
Director / General Manager
He serves as Chairman of the Quality Assurance Board
established by the Institute of Chartered Accountants of Mr. Priyantha Abeygunawardana is a triple-qualified
Sri Lanka comprising senior members of the accounting Accountant holding the fellowship of Chartered, CIMA
profession as well as representatives of public sector and ACCA. He also holds two Master’s degrees in two
regulatory bodies such as the SEC, SLAASMB, CBSL, etc. different fields, namely, MBA from the University of Sri
Jayewardenepura specializing in Finance and LLM from
Mr Tissa Bandaranayake is a Past Chairman of the Audit University of Colombo in Company Law, Labour Law and
Faculty of the Institute of Chartered Accountants of Sri Lanka. Banking Law.
8. Mr. B. Lalith P. Jayawardena He obtained his LLB degree from the Open University of Sri
MBA, BCom (Sp) Lanka and took his oaths as an Attorney-at- Law in 2004
Executive Director having passed the requisite examinations held by the Sri Lanka
Law College.
Mr Lalith Jayawardena has over 24 years’ experience in
Samson International Plc and has served the company from its He is also member of Chartered Institute of Marketing of UK.
inception. He is also a Director of Samson Group Corporate
Services (Pvt) Ltd., Samtessi Brush Manufacturers (Pvt) Ltd. Previously he was at Ford, Rhodes, Thornton & Company,
and Micro Minerals (Pvt) Ltd., a subsidiary of the Richard Peiris Hayley’s, Abans and finally at Richard Piers Exports Plc where
Group. In addition, Mr Lalith Jayawardena serves as the Group he worked as General Manager for six years. He joined
Treasurer of the DSI Samson Group. Samson International Plc in February 2012.
He is the Secretary of the Sri Lanka Association of

Manufacturers & Exporter of Rubber Products (SLAMERP). Mr
Lalith Jayawardena is also a member of the Rubber Advisory
Council of the Sri Lanka Export Development Board and of
the Ministry of Industry and Commerce. He is a past Treasurer
of the Plastic and Rubber Institute of Sri Lanka.
Analysis of Director’s Professional Background:
Professionally qualified area No. of Directors on the Board
1 Medical 1
2 Science 3
3 Engineering 2
4 Finance 3
5 Economics 1
6 Law 1
7 Marketing 1
8 Management 3

19
executiVe
Management
Mr. Kulatunga Rajapaksa Mr. Priyantha Abeygunawardana

B.Sc (Hons) (Cey) MBA, LLM, LLB, FCA, FCMA, FCCA, MCIM, Attorney-at -Law
Managing Director Director/ General Manager
Research & Development
Mr. Sunil Kariyawasam Mr. Wimal Siriwardana Mr. P K Sameera Tharanga

Dip. in Rubber Technology (NDT) Dip. in Rubber Technology, B.Sc Engineering (Hons)
Deputy General Manager – Research Certificate in Hydraulic Technology Process Engineer
& Development Executive – Research and Development
20
executiVe Management (contd...)
Marketing
Mr Naveendra Kumara
MBA, MAAT, Dip in Business Mgt.
Manager - Marketing
Mr. Sanjeewa Weerakkodi

BA ( Hons) (Economics), Dip in
Marketing ( UK)
Assistant Manager - Marketing
Supplies Human Resources
Ms. Piumangani Seneviratne Ms. Nishanthi Padmakumari

BMS (Sp), Dip. in Mgt Dip. in Human Resources Management
Manager - Supplies Executive - Human Resources
Production
Mr. M. A. P. Janakantha
Dip. in Engineering Science, Dip. in Rubber
Technology
Executive- Production, Galle Factory
Mr. Asanka Dimuth Edirisinghe

Dip. in Engineering Science
Executive- Production, Kalutara
Factory

21
Quality Assurance Engineering
Mr. Namal Nishantha Mr. Nilantha Jayalal

B.Sc, Dip. in Rubber Technology Dip. in Technology
Executive- Quality Assurance Executive – Engineering
Finance Welfare
Mr. Thilina Promod Kahanda Gamage Mr. G. Paranavithana

B.Sc Finance Management (Sp) Dip. in Commerce
Executive- Finance Executive- Welfare
Analysis of Educational and Professional qualifications of the Executives :
CATEGORY Number of educational Number of professional

qualifications qualifications
Master’s Degrees 4 -
Bachelor’s Degrees 7 -
Diplomas 11 -
Professionally qualified in Accountancy 3
Professionally qualified in Law 1
Professionally qualifi ed in Marketing 2
Total 22 6
22

23
cOrpOrate
Governance
“Board of Directors gives its top priority to the requirements of the Securities and Exchange Commission
attain a high standard of corporate governance of Sri Lanka, Colombo Stock Exchange and the Institute of
Chartered Accountants of Sri Lanka and to this end, inter
practices as specified by regulatory bodies …”
alia, have established internal control systems, including a
T he Board recognizes the interests of the Company’s

comprehensive risk identification, measurement and mitigation
process which is in place designed to carry out the business
shareholders, employees, customers, suppliers, consumers,
of the Company in an orderly manner, to safeguard its assets
and communities in which it operates and who are all essential
and secure as far as possible, the accuracy and reliability of the
for the Company’s success. The Company’s corporate
records and protect the rights and interests of shareholders
governance framework is expected to ensure a transparent
and be accountable to them for the overall management of
and good governance system leading towards enhancing
the Company. The corporate governance of the Company
profitability and long-term sustainability. The Directors are
is reflected in its strong belief in protecting and enhancing
committed to maintaining the highest standards of corporate
stakeholder value in a sustainable manner, supported by a
governance in the interest of stakeholders having regard to
sound system of policies and practices.

53
cOrpOrate Governance (contd...)
Board of Directors To protect the untarnished reputation of the company, the
Board ensures that its members and employees maintain the
The Board comprising professional and experienced business
highest possible ethical standards.
leaders of high repute is entrusted with, and is responsible for
providing strategic direction to the company in an honest, fair,
The Board has delegated responsibility to the Managing
diligent and ethical manner. The Board of Samson International
Director who is also the Chief Executive Officer for planning
Plc comprises three executive directors and six non-executive
and guiding the business towards meeting set objectives. There
directors. Their profiles appear on pages 18 & 19 of this Annual
is a clear demarcation of responsibilities and authority between
Report.
the Chairman and the Chief Executive Officer/ Managing
Role of the Board of Directors Director, which ensures a balance of power.
The Board of the Company is responsible for formulating

company policy and overall business strategy. The
Appointment & Re-election of Directors
The Board of Directors collectively decides on the new
implementation of policy and strategy is done within a
appointment of directors as per the Articles of Association of
framework that requires compliance with existing laws and
the Company. Formal and transparent procedures are followed
regulations as well as establishing best practices in dealing with
in making such appointments. The Annual General Meeting
employees, customers, suppliers and the community at large.
is considered to be the ideal forum for this, with sufficient
It is the Company’s policy to hold regular Board meetings.
biographic data on directors seeking appointment or re-election
Information relevant to these Board meetings was distributed
accompanying their names so that shareholders can make
in a timely manner with ample time given for members to
informed voting decisions.
assimilate and analyze information in order to make well-
informed decisions at Board meetings. In the furtherance of
his duties, provisions have been made to allow a director to
Board Meetings
The Board held five meetings during the period under review
acquire independent professional advice at the expense of the
and their attendance is given below.
company. The Board approves all material contracts, projects,
investments, acquisitions and disposal fixed assets and annual
capital & revenue budgets.
Name of Director Status 27th May 08thAugust 11thNovember 13thFebruary 26thMay No of

2013 2013 2013 2014 2014 Attendance
Dr D S Rajapaksa NE √ √ √ √ √ 5/5
Mr D K Rajapaksa E x √ √ √ √ 4/5
Mr D M Rajapaksa NE √ √ √ √ √ 5/5
Mr D R Rajapaksa NE √ √ √ √ √ 5/5
Mr R H Nandajeewa
(Resigned on 8/8/2013) E √ √ - - - 2/2
Mr C Cumaranatunga
(Based in Germany) NE x x x x x 0/5
Mr T K Bandaranayake NE/I √ √ √ √ √ 5/5
Mr G H A Wimalasena NE/I x √ √ x √ 3/5
Mr B L P Jayawardena E √ √ x x x 2/5
Mr. D G P S Abeygunawardana
(Appointed on 8/8/2013) E - √ √ √ √ 4/4
D
irectors’ attendance at the Board Meetings of Samson International PLC
Note 1: Under status column, “E” = Executive, “NE”= Non- Executive and “I” = Independent
Note 2: Mr Cumaranatunge is based in Germany and all proceedings of the Board meetings have been sent to him.
54
Committees
Specific responsibilities have been delegated to the Board Committees, namely, Audit Committee and Remuneration Committee.
Audit Committee
The Audit Committee consists of three Non- Executive Directors:
Mr T. K. Bandaranayake – Chairman Independent, Non- Executive Director
Mr G.H. Wimalasena Independent, Non- Executive Director
Mr D. M. Rajapaksa Non -Executive Director
Please refer the Audit Committee Report on pages 72 and 73 for the functions and responsibilities of the Committee. The Internal
Audit function of the Company is carried out by Ms. Ernst & Young, Chartered Accountants. They directly report to the Chairman of
the Audit Committee. The Audit Committee Charter gives guidelines on audit-related matters.

2013 2013 2013 2014 2014 Attendance
Mr T K Bandaranayake
(Chairman) NE/I √ √ √ √ √ 5/5
Attendance of Members of the Audit Committee
Remuneration Committee
The Remuneration Committee, appointed by the Board of Directors, consists of three Non -Executive Directors:
Mr G. H. A. Wimalasena – Chairman Independent Non-Executive Director
Mr T.K. Bandaranayake Independent Non -Executive Director
Mr D.M. Rajapaksa Non- Executive Director
They recommend the remuneration packages of Directors, Managers and Executives of the Company.
Compliance and Disclosure of Information

The Company’s compliance with its statutory obligations is regularly monitored by Management and a Statement of Compliance
is presented to the Board on a regular basis. The Board of Directors requires that the Financial Statements of the Company are
prepared in accordance with the Sri Lanka Accounting Standards and in accordance with the requirements of the Colombo Stock
Exchange and Companies Act, 7 of 2007. Maximum information is provided to shareholders and full disclosure is made subject only
to consideration of any sensitive information, which could directly impact on the business of the Company.
The Statement of Compliance under Section 7.10 of the rules of Colombo Stock Exchange on Corporate Governance is shown in the
Table below. All these mandatory provisions have been fully complied with.

55
CSE Rule No. Subject Applicable Requirement Compliance Status
7.10.1(a) Non- Executive Directors At least 1/3 of the total number of Compliant
Directors should be Non-Executive Directors 6 out of the 9 Board
members are
Non- Executives.
7.10.2(a) Independent Directors 2 or 1/3 of Non-Executive Directors, Compliant

whichever is higher should be independent There are 2 Independent
Directors and 6
Non- Executive Directors.
7.10.2(b) Independent Directors Each Non-Executive Director should submit Compliant

a declaration of independence/ Independence of Directors
non-independence has been determined in
accordance with CSE.
7.10.3(a) Disclosure relating to Directors a. The Board shall make a determination Compliant
annually as to the independence or All Independent,
non independence of each Non-Executive Directors
Non-Executive Director have submitted declarations
for their independence.
b. Names of independent Directors Compliant

should be disclosed in the Annual Report This has been disclosed.
7.10.3(b) Disclosure relating to Directors In the event a Director does not qualify as Not Applicable
independent, but if the Board is of the opinion
that the Director is nevertheless independent,
shall specify the criteria not met and the basis
for the determination in the Annual Report
7.10.3(c) Disclosure relating to Directors A brief resume of each Director should be Compliant
included in the Annual Report including Please refer the Profile of the
the area of expertise Directors in the Annual
Report on pages 18, 19.
7.10.3(d) Disclosure relating to Directors Upon appointment of a new Director Compliant

to the Board, a brief resume of each A brief resume of the new
Director should be provided to the CSE. Director was provided to the
CSE in August 2013.
7.10.5 Remuneration Committee A listed Company shall have a Compliant

7.10.5(a) Composition of Remuneration Shall comprise Non-Executive Directors, Compliant

Committee a majority of whom shall be independent 2 out 3 Non-Executive
directors are independent.

56
CSE Rule No. Subject Applicable Requirement Compliance Status
7.10.5(b) Report of Remuneration The Remuneration Committee shall Compliant

recommend the remuneration
of Chief Executive Officer and
Executive Directors
7.10.5(c) Disclosure in the Annual Report The Annual Report should set out:
relating to Remuneration a. Names of Directors comprising Compliant
Committee the Remuneration Committee
b. Statement of remuneration policy Compliant
c. Aggregate remuneration paid to Compliant
Executive & Non-Executive Directors Pl see page 74
7.10.6 Audit Committee The Company shall have an Audit Committee Compliant
Rule No. Subject Applicable Requirement Compliance Status
7.10.6.(a) The composition of a. Shall Comprise Non-Executive Directors, Compliant

Audit Committee a majority of whom can be independent 2 out 3 Non-Executive
directors are independent.
b. Chief Executive officer and the chief Compliant

Financial Officer should attend Audit
committee meetings
c. The Chairman of the Audit committee or Chairman is a member of

One member should be a member of a Institute of Chartered
professional Accounting body Accountants of Sri Lanka
7.10.6.(b) Audit Committee functions Overseeing of the Compliant

(i) Preparation, Presentation and adequacy of Audit Committee oversees
disclosures in the financial statements in the integrity of the
accordance with Sri Lanka Accounting financial statement.
Standards.
(ii) Compliance with financial reporting Compliant

requirements, information requirements of Audit Committee oversees
the Companies Act and other relevant the requirement of the
financial reporting related regulations Companies Act and
and requirements other regulations.
(iii) Processes to ensure that the internal Compliant

controls and risk management are Audit Committee oversees
adequate, to meet the requirements of effectiveness of internal
the Sri Lanka Auditing Standards. control and risk
management,

57
Rule No. Subject Applicable Requirement Compliance Status
(iv) Assessment of the independence and Compliant

performance of the external auditors. Audit Committee oversees
independence and
performance of the external
auditors.
(v) Make recommendation to the board Compliant

pertaining to appointment, re-appointment Audit Committee
and removal of external auditors and to makes such
approve the remuneration and terms of recommendations.
engagement of the external auditors
7.10.6.(c) Disclosure in the Annual Report a. Names of Directors comprising the Audit Compliant
relating to Audit Committee Committee.
b. The Audit Committee shall make a Compliant

determination of the independence of
the Auditors and disclose the basis
for such determination.
c. The Annual Report shall contain a Report Compliant

of the Audit Committee setting out the
manner of compliance of the function. Pl see page 72, 73.
The Code of Best Practice of Corporate Governance issued jointly by the Securities Exchange Commission of Sri Lanka and the
Institute of Chartered Accountants of Sri Lanka, which are voluntary provisions, has been also been fully complied with.
Internal Controls
The Internal Audit function of the Company continues to be outsourced and is being carried out by Ms Ernst & Young and
Company, Chartered Accountants. They assess the strengths and weaknesses of the Company’s Internal Control System and liaise
closely with the Audit Committee on a quarterly basis in making recommendations on improving these systems. Controls are in
place to safeguard the Company’s assets, physical or otherwise, and ensure that proper records of each Company’s transactions are
maintained. Directors are responsible for establishing appropriate systems of internal control in the Company and reviewing the
effectiveness of the system of internal controls constantly.
Going Concern
The Directors have continued to use the “Going concern” basis in the preparation of Financial Statements, after careful review of the
financial position and cash flow status of the Company. The Board of Directors believes that the Company has adequate resources
to continue in operation for the foreseeable future.
Secretary to the Board

P W Corporate Secretarial (Pvt) Ltd. acts as Secretaries to the company. They advise the Board on appropriate procedures for the
management of its meetings and duties, as well as the compliance of corporate governance in the Company.

58
risk
Management
“The Company ensures the “minimization of steady progress towards the achievement of corporate
risks” by adopting many strategies for smooth goals and objectives. The risk management process has
been designed to ensure identification of any situation or
Company operations … “
circumstance that would adversely affect the achievement
T he Risk Management Policy of Samson International

of the Company’s objectives. The company has a proactive
approach to business, aimed at enhancing shareholder value.
Plc is to proactively manage risk to ensure continued
The company reviews and assesses significant risks on a regular
growth of our business and to protect our employees, assets
basis and has implemented an oversight programme to ensure
and reputation. Our ongoing assessment process takes into
that there is a system of internal control in place. The Audit
account the likelihood of an event, its potential impact on the
Committee reviews and monitors internal controls. The Audit
business, the need for mitigation and to take corrective action.
Reports are reviewed by the Audit Committee along with the
We need to have an effective risk management system while
Risk Reports and Compliance Reports on a quarterly basis.
maintaining business flexibility. We will identify and assess
The potential risks are identified through risk workshops, risks
material risks associated with our business, monitor, manage
reviews, essential control checklists and risks reporting. The
and mitigate these risks.
Board also reviews its strategies, processes, procedures and
guidelines on a continuous basis to effectively identify, assess
Managing business and financial risks is of fundamental
and respond to risks.
importance in maintaining sustainable growth and making

59
risk Management (contd...)
The Risk Management Table below explains the type of risk, risk exposure, mitigating action and risk ranking of the Company.
Risk Risk exposure Mitigating action Risk Ranking
Financial Related risks

1) Credit Risk Risk arising due to default of This has been explained under Note 5 of the Medium
payment. Higher credit risk may Financial Statement on pages 92 and 93.
adversely impact both liquidity
and profitability.
2) Operational Internal process failures, This has been explained under Note 5 of the Medium
process Risk fraud, pilferage and breakdown Financial Statement on pages 92 and 93.
of internal controls
3) Financing Inability to satisfy debt This has been explained under Note 5 of the Low
and Interest repayments and obtain Financial Statement on pages 92 and 93.
rate risk the best interest rates.
4) Foreign Depreciation of the rupee value This has been explained under Note 5 of the Medium
Exchange and loss of exchange in Financial Statement on pages 92 and 93.
rate Risk conversion in relation to export
proceeds, import payments and
foreign currency debt
transactions.
5) Project New projects / Capital This has been explained under Note 5 of the Medium
Management expenditures involve Financial Statement on pages 92 and 93.
Risks high risks and uncertainties
in terms of delays and cost
overruns. Failure of major
projects will affect profitability,
capital structure and reputation.

60
Non-Financial Related risks

6) Reputation Adverse impact on the a) Maintenance of highest ethical standards at Low
Risk corporate image and brand all times in all business activities and make
which is likely to diminish compliance audit as part of internal audit scope.
shareholder value.
This will finally lead to a b) Proper adherence to the statutory, health and
decline in market share safety concerns by obtaining appropriate
and customer base. quality certification standards.
c) Continuous review of customer comments in order

to exceed customer expectations and ensure quality
standards are adhered to and improved upon.
d) The Company plays a corporate citizen role

through CSR initiatives.
7) Human Risk of losing skilled and a) Provide focused and structured training medium
Resources trained human capital to staff at all levels to aid personal
Risk and professional development.
b) Establish career development programmes and

succession plans in order to retain and motivate them.
c) Maintaining good relationships with employees

through regular dialogue.
d) Top priority is given to automation of manual work.
8) Technological Risk of low productivity and a) Frequent visits of overseas exhibitions and continuous medium
Risk high maintenance costs investment in modern machinery.
compared to the products
manufactured by competitors. b) Continuous competitor analysis is carried out.
c) Investing in Research and Development activities

throughout the year.
d) Investing in ERP system, hardware and

developing software in-house.
9) Procurement Risk of non- availability a) Establishing relationships with many global and local medium
Risk of raw materials and suppliers for raw materials and commodities
excessive prices. in order to reduce over dependency
on a single supplier / brand.
b) Store raw materials when the prices are low and

enter into forward contracts for raw material purchases.
a) Consume energy in the most efficient way.

61
10) Inventory Risk of having non-moving a) Identifying slow-moving stocks and sell them in medium
Risk stock a different market.
b) Re-order level and economic order quantity

are established.
11) Risk of Risk of losing our market a) Ensuring high standards of quality in High
Competition share and sales growth to the eyes of the customer and branding all our products.
Chinese low quality products
and to other substitute b) Participate in trade fairs both local and
products, e.g. PVC - Related foreign to attract new customers.
Products
c) Identify the products which are in the decline stage
of the Product Life cycle and take corrective action.
d) Sourcing new markets and developing new products.
e) Make necessary investments to upgrade the facilities.
f) Corporate plan is prepared every three years and

monitored closely.
g) Increasing productivity and efficiency in order to

ensure our prices remain competitive.
h) Carrying out Research and Development activities to

identify needs.
i) The provision of various value added services for

our key customers.
j) Manufacture PVC- related products where there is

high demand, e.g., PVC hoses
12) Statutory and Risk of non-compliance a) Create awareness of statutory obligations at all levels. Low
Regulatory with changes in legal
Risk and regulatory environment, b) Seek advice from external consultants on
taxation, labour and other all matters relating to litigation and contracts.
laws will result in judiciary
actions. c) Product liability insurance is taken for hot water bottles.
d) Have a central record room to keep all our important

documents for 10 years.
e) Continuous dialogue with statutory bodies to meet

updated reporting requirements.

62
13) Fire and Fire and natural disasters can a) Obtaining comprehensive insurance cover for Low
natural halt or cease operations fire and natural disasters.
disaster risk
b) Fire safety drills and training is given to ensure
the occurrence of fire is kept to a minimum.
The company is equipped with firefighting equipment
at all strategic locations in the factory.
14) Information To minimize risk associated a) Data back-ups stored in off site locations. Low
systems risk with data security, hardware
& communication and software. b) Maintaining of spare servers.
c) Vendor agreements for support service and

regular maintenance.
Low
Statutory and Regulatory Risk

63
Risk Minimization Strategies applied d) We eliminated the risk of bad debts. Dues from
debtors have to be collected by the previous owner.
to the new business line of PVC
The previous owner has to collect all dues from
In order to and to minimize the current business risk and also
debtors and it is part of his purchase consideration.
to move forward in the direction of our Vision, we invested in a
e) We eliminated the risk of cheques in hand being
PVC factory recently. Prior to taking over this factory, Samson
dishonoured. We gave these cheques to the previous
International Plc faced many risks, namely,
owner as part of purchase consideration.
1) In the past we lost a significant market share for our

f) We obtained the services of old employees by
rubber hoses as there are PVC hoses with a better finish
giving them new letters of appointment. Therefore
and lower price. So we faced a Risk of Competition.
no old EPF, ETF and gratuity issues and penalties will
be faced by our Company.
2) Further we use a lot of PVC- related items as raw
materials for our finished products, e.g., PVC stoppers for
g) We decided to pay electricity, insurance and
hot water bottles. These are imported from China and
telephone bills to minimize the operational risk.
there are frequent complaints about the quality of these
stoppers from our customers (Operational Risk).
h) We did a diligence audit by giving it to a reputed
Audit Firm. This eliminated all financial risk.
3) We have experienced that every 3-4 years, rubber prices
sky rocket. During this time, sales of rubber-related
i) A valuation report for Land & Buildings was
products decrease. Therefore during such times, we can
obtained.
make some of our products out of PVC, e.g., PVC hot
water bottles, PVC jar sealing rings, PVC bath mats, etc,
j) A title deed search was done and a survey plan was
which can be competitive in the market. Therefore we
carried out.
could eliminate the Business Risk.
Therefore in order to eliminate above risks, we decided to step
k) Physical verification of assets was carried out.
into manufacturing PVC products and purchased assets of
Okta PVC Lanka (Private) Ltd., Baddegama,
l) Required Board resolutions were passed after we
obtained the approval of the Audit Committee. We
When we negotiated the price for PVC business, we
checked whether it was under major transactions
eliminated the risk in the following manner:
under Section 185 of the Companies Act.
a) We searched for a factory close to our current

factory. This eliminates some operational risks and m) Informed the Colombo Stock Exchange. There is no
we found a suitable factory. legal risk.
b) We eliminated the risk of transferring old tax n) Market research was carried out for PVC products
liabilities and penalties to us. We accepted their before we invested in them. Therefore there is no
liabilities but excluded tax liabilities. Therefore, the market risk.
finance and legal risks were eliminated.
o) Negotiated banking facilities for the new business
c) We eliminated the risk of payments made to in advance. Therefore there is no business and
unknown creditors and accrued expenses in the finance risk.
future. This has to be settled by the current owner
as per our legal agreement. We eliminated finance
risk.
64
repOrt
of the Board of Directors
The Directors of Samson International Plc have pleasure in
presenting their report together with the audited financial Accounting Policies
statements of the Company for the year ended 31st March A summary of the significant accounting policies adopted in the
2014, which was approved by the Directors at a meeting held preparation of the Financial Statements is given on page 83 of
on 1st August 2014. this Report as required by Section 168 (1) (d) of the Companies
Act No. 7 of 2007. The policies adopted are consistent with
General those adopted in the previous financial year.
Samson International Plc is a public limited liability Company,
incorporated in Sri Lanka on 14th October 1988 and re- Review of the year
registered under the Companies Act No. 7 of 2007 on 3rd The Chairman’s review and the Managing Director’s operational
September 2008 under registration number PO 192. The review together with the Financial Statements highlight the
ordinary shares of the Company were listed in the Colombo Company’s performance during the period under review and
Stock Exchange of Sri Lanka on 24th July 1992 and the the state of affairs as at 31st March 2014.
Company was converted into a public quoted company.
Segment Reporting
This Report provides the information as required by the Segment-wise products contribution to the Company’s revenue,
Companies Act No. 07 of 2007, the Listing Rules of the results, assets and liabilities is provided in Note 28 to the
Colombo Stock Exchange and recommended best practices on Financial Statements on page 107.
Corporate Governance.
Turnover
The Principal Activities of the Turnover of the Company is Rs. 953 mn in 2013/14 as
Company compared to Rs. 974 mn in the last year.
The principal activity of the Company is the manufacture of

unhardened vulcanized rubber products for the international
and local market. There have been no significant changes in the
nature of the Company’s principal activities during the year.
Turnover by segment:
Rs in 000’
2013/2014 2012/2013
Medical items 209,496 213,671
Food grade items 286,664 291,250
Household items 108,275 138,555
Footwear components 348,126 330,381
Total turnover 952,561 973,857

65
repOrt OF tHe Board of Directors (contd...)
Profits:
2013/2014 2012/2013
Profit for the year 64,841 51,077
(after payment of all expenses, making provision for known liabilities and
depreciation on property, plant and equipment)
Tax on profits (8,491) 4,438
Profit after taxation 56,350 55,515
Retained profits brought forward 185,152 137,333
Profits available for appropriation / distributions 241,502 192,848
Proposed first & final dividends (7,696) (7,696)
Retained profits carried forward 233,806 185,152
Taxation
Under Section 52 of the Inland Revenue Act No 10 of 2006, tax profit on export sales, tax profit on local sales, interest income and
agriculture income of the Company are taxed at the rate of 12%, 28%, 28% and 10 % respectively.
Investments in Property, Plant & Equipment

During the year 2013/2014, the Company invested Rs. 25.8 mn in property, plant & equipment. The total investments in property,
plant & equipment as at 31st March 2014 amounted Rs. 500 mn as opposed to Rs. 474 mn as at 31st March 2013. The information
relating to the movement in property, plant & equipment is given in Note 13 to the Financial Statement on page 97.
Stated Capital & Reserves

The movement of the Stated capital is as follows.
2013/2014 2012/2013
Stated capital- Rs 105,752 105,752

No. of Ordinary shares 3,847,974 3,847,974
Details of the Stated capital are given in Note 21 to the Financial Statements on page 102 of this Annual Report. The rights and
obligations attaching to the ordinary shares are set out in the Articles of Association of the Company, a copy of which can be
obtained from the Secretaries upon request.
Reserves
The Group reserves as at 31st March were as follows.
2013/2014 2012/2013
General reserves 110,000 110,000

Revenue reserves 233,806 185,152
Total reserves 343,806 295,152

66
Directorate
The names of the Directors who held office at the end of the financial year are given below and their brief profiles appear on pages
18 and 19.
1) DR D.S. Rajapaksa (Chairman)
2) Mr D. K. Rajapaksa (Managing Director)
3) Mr D. R. Rajapaksa (Non- Executive Director)
4) Mr D. M. Rajapaksa (Non- Executive Director)
5) Mr C. Cumaranatunge (Non- Executive Director)
6) Mr G.H.A. Wimalasena (Independent, Non- Executive Director)
7) Mr T. K. Bandaranayake (Independent, Non- Executive Director)
8) Mr B. L.P. Jayawardena (Executive Director)
9) Mr D. G. P. S. Abeygunawardana – Director/ General Manager

(appointed on 8/8/2013 as Director)
10) Mr R. H. Nandajeewa– Director

(Resigned on 8/8/2013)
In terms of Article 88 (i) of the Articles of Association, Mr D. R. Rajapakse and under Section 210 of the Companies Act No. 7 of
2007, Mr T.K. Bandaranayake and Mr G.H.A. Wimalasena are available for re-election.
Directors’ interest in shares

Directors’ holdings of ordinary shares in the Company are given below.
No of Shares as at No of shares as at
31.03.2014 31.03.2013
Dr D.S. Rajapaksa 7,156 7,156

Mr. D. K. Rajapaksa 9,931 9,931
Mr. D. R. Rajapaksa 10,319 10,319
Mr. D. M. Rajapaksa 9,295 9,295
Mr. C. Cumaranatunge 2,244 2,244
Mr. G.H.A. Wimalasena Nil Nil
Mr. T. K. BandaranayakeNil Nil
Mr. B. L.P. Jayawardena Nil Nil
Mr. D. G. P.S. Abeygunawardana
(appointed on 8/8/2013) 100 -
Mr. R.H. Nandajeewa
(retired on 8/8/2013) - 132
Total 39,045 39,077

67
The Directors of the Company who have relevant interests in The Report of the Audit Committee is given on pages 72 and
the shares of the Company have disclosed their shareholdings 73, which forms part of the Annual Report.
in compliance with Section 200 of the Companies Act.
Remuneration Committee:
Directors’ Remuneration and Other Mr G. H. A. Wimalasena – Chairman, Independent,
Benefits Non-Executive Director
The details of the Directors’ remuneration and other benefits,
Mr T.K. Bandaranayake Independent,
in respect of the Company for the financial year ended 31
Non -Executive Director
March 2014 is given in Note 8.1 to the Financial Statements
Mr. D.M. Rajapaksa Non- Executive Director
on page 94 of this Report, as required by Section 168 (1) (f) of
the Companies Act No. 07 of 2007. Directors’ remuneration
The Report of the Remuneration Committee is given on page
for the financial year 2013/14 is Rs. 8,376,395 (last year
74, which forms a part of the Annual Report.
Rs. 8,057,195).
Directors’ interest in transactions: Employment Policies

The Company continues to invest in human resource
The Directors of the Company have made a disclosure as
development and implements effective practices to develop and
required under Section 192(2) of the Companies Act No. 07 of
build an efficient and effective workforce to ensure optimum
2007. Note 27 to the financial statements dealing with related
contribution toward the achievement of its corporate goals.
party disclosures include their interests in transactions under
note 27.3 on page 105. The Company employment policies are based on recruiting
the best people, providing them training to enhance their
Interest Register skills, and recognition of the innate skills and competencies
The Interests Register is maintained by the Company, as per of each individual while offering equal career opportunities
the Companies Act, No. 7 of 2007. All Directors have made regardless of gender, race or religion and to retain them with
declarations as provided for in Section 192 (1) & (2) of the the Company as long as possible. The number of persons
Companies Act aforesaid. The related entries were made in the employed by the Company at year-end was 324 (last year 302).
Interests Register during the year under review. The Interests

Register is available for inspection as required by Section 119 System of internal controls
(1) (d) of the Companies Act No. 07 of 2007. The Board of Directors has established an effective and
comprehensive system of internal controls to ensure that proper
Board committees controls are in place to safeguard the assets of the Company,
The Board while assuming the overall responsibility and to detect and prevent fraud and irregularities, to ensure that
accountability in the management of the company has also proper records are maintained and Financial Statements
appointed Board Committees to ensure oversight and control presented are reliable and accurate. Monthly Management
over certain affairs of the Company, conforming to the Accounts are prepared, giving management relevant, reliable
corporate governance code and adopting the best practices. and up -to-date Financial Statements and key performance
Accordingly, the following Committees have been constituted indicators. The Statement on Directors ‘responsibility for
by the Board: financial reporting of the Company is set out on page 71 of this
Report.
Audit Committee:
Mr T. K. Bandaranayake – Chairman, Independent, The Audit Committee reviews, on a regular basis, the reports,
Non- Executive Director policies and procedures to ensure that a comprehensive internal
control framework is in place.
Mr G.H. Wimalasena Independent,
Non- Executive Director
Mr D. M. Rajapaksa Non -Executive Director

68
Donations Social and Environmental
The total amount of donations was Rs. 39,519 in the year Responsibility
2013/14 (20012/13 – Rs 44,500). This has not exceeded the As a responsible corporate body, the Company has taken
amount approved by shareholders at the last Annual General all necessary steps and precautions to minimize any adverse
Meeting. No donation was made for political purposes. impact of the Company’s activities on the environment. When
introducing new business, products, methods and machines,
Major Transactions maximum care is taken to ensure that these conform to
There have been no transactions during the year under review accepted environmental and safety regulations and standards.
which fall within the definition of “Major Transactions” in The Directors, to the best of their knowledge and belief, are
terms of Section 185 of the Companies Act, No. 07 of 2007. satisfied that the Company has not engaged in any activities
The total assets of the Company is Rs. 654 mn and 50% of which have caused adverse effects on the environment and it
the total assets is Rs. 327 mn. The Company has not bought has complied with the relevant environmental regulations.
any assets or undertaken any liabilities greater than Rs. 327 mn
during the year under review. Sustainability Reporting
Sustainability practices have been built into every aspect of our
Share information businesses and we consider sustainability goals along with our
The information pertaining to earnings per share, dividend operational and financial goals. This Sustainability Report is on
per share, net assets per share and market value per share is pages108 to 121 of this Annual Report.
given in the financial highlights on page 01 and in the Ten-year
summary on page 133 of this Annual Report. Corporate Governance
The Company maintains and practices high principles of good
The twenty major shareholders and percentages held by each corporate governance. The Directors are responsible for the
one of them as at 31st March 2014 are given on page 130 of formulation and implementation of overall business strategies,
the Annual Report. policies and setting standards in the short, medium and long-
term adopting good governance in managing the affairs of the
Public holding of shares in the Company. The practices adopted by the Company in relation
Company to corporate governance are set out on pages 53 to 58 of this

Report.
As at 31st March 2014, the public held 43.04% (in 2012/2013-
13.91%) of the shares of the Company. This significant
difference arose due to changes in the interpretation of
Auditor’s Report
The Company’s external auditor, Messrs. HLB Edirisinghe &
the definition of “Public Holding” by the Colombo Stock
Company, performed the audit on the Financial Statements
Exchange.
for the year ended 31 March 2014. The Auditor’s Report on
the Financial Statements is given on page 77 of this Report as
Statutory Payments
required by Section 168 (1) (c) of the Companies Act.
The Directors, to the best of their knowledge and belief, are
satisfied that all statutory payments due to the government,
Appointment of Auditors
other regulatory institutions and in relation to employees
The retiring Auditors HLB Edirisinghe & Company, Chartered
have been made within the stipulated period and have been
Accountants, have expressed their willingness to continue
accounted for during the financial year.
in office. A resolution to re-appoint them as auditors and
authorize the Directors to fix their remuneration will be
Compliance with laws and regulations proposed at the Annual General Meeting in terms of the
To the best of the knowledge and belief of the Directors, the
Companies Act, No. 7 of 2007.
Company has not engaged in any activities contravening the
laws and regulations of the country.

69
Auditor’s Remuneration and Financial Statements of the Company
Independence The Financial Statements of the Company, duly certified by the
The Company paid audit fees to the external auditors for the Head of Finance and approved by two Directors in compliance
year 2013/14 amounting to Rs. 282,900 (2013 - Rs. 265,200). with Sections 152, 153 and 168 of the Companies Act No. 7 of
Based on the declaration provided by Ms. HLB Edirisinghe & 2007, are given from pages 78 to 107 of the Annual Report.
Company and as far as the Directors are aware, the Auditors do
not have any relationship with or interests in the Company that Secretaries
may have a bearing on their independence, within the meaning P W Corporate Secretarial (Pvt) Ltd. continues to work as
of the Code of Professional Conduct and Ethics issued by the Secretaries to the Company.
Institute of Chartered Accountants of Sri Lanka.
Dividends
Outstanding litigation The Directors recommend a dividend of 2.00 per share for the
In the opinion of the Directors, in consultation with the year ended 31st March 2014 (2.00 per share in 2012/13).
Company lawyers, there is no litigation currently pending
against the Company which will have a material impact on the Notice of Meeting
reported financial results or future operations of the Company. Details of the Annual General Meeting are given in the Notice
of Meeting on page 136.
Post Balance sheet events
In the opinion of the Directors, no item, transaction or event of 22nd Annual General Meeting
an unusual nature has taken place between the financial year- The 22nd Annual General Meeting of the Company will be held
end and the date of this report that would materially affect on Monday the 19th day of September 2014 at the Sri Lanka
the results of the Company for the financial year in respect of College of Obstetricians and Gynecologists Samson Rajapaksa
which this report is made. Auditorium at No 112, Model Farm Road, Colombo 08, which
was the same venue for the previous year.
On 14th July 2014, the Company invested in a PVC factory,
Okta PVC Lanka (Pvt) Ltd., Baddegama, who were engaged in On behalf of the Board
manufacturing PVC pipe & fittings under SLS. The total assets
value and Liabilities taken by us are Rs. 137,167,655 and
Rs. 113,339,588 respectively . The amount paid to the owner
was Rs. 23,828,067. The company informed the Colombo D.K. Rajapaksa D. G. P. S Abeygunawardana
Stock Exchange prior to investing in this business line. Managing Director Director / General Manager
Going Concern
The Board of Directors has reviewed the Company’s business
and corporate plans and are satisfied that the Company has P W Corporate Secretarial (Pvt) Ltd.
adequate resources to continue its operations in the Secretaries
foreseeable future. After considering the financial position, Colombo
operating conditions, regulatory and other factors and such 1st August 2014.
matters required to be addressed in The Corporate Governance
Code, the Directors have a reasonable expectation that
the Company possesses adequate resources to continue in
operation for the foreseeable future. For this reason, they
continue to adopt the Going Concern basis in preparing the
Financial Statements.

70
stateMent
of Directors responsibility
T he following statement, which should be read in The Directors have general responsibility for taking such steps
conjunction with the Auditor’s responsibilities, as set out as are reasonably open to them to safeguard the assets of
in their report, is made with a view to distinguish between the the Company and to prevent and detect fraud and other
respective responsibilities of the Directors’ and the Auditor’s, in irregularities.
relation to Financial Statements.
The Directors are of the opinion that the Financial Statements
The Directors are required by the Companies Act, No 07 of of the Company set out on pages 78 to 107 have been
2007, to prepare Financial Statements for each financial year, prepared in accordance with the above requirements and that
which give a true and fair view of the state of affairs of the they have appropriately discharged their responsibilities as set
Company as at the end of the financial year and of the profit out in this Statement.
and loss for the financial year. The Directors are required to
prepare these Financial Statements on the going concern basis, The Directors confirm that to the best of their knowledge,
unless it is not appropriate. all taxes, duties and levies payable by the Company and all
contributions, levies and taxes payable on behalf of and in
Since the Directors are satisfied that the Company has the respect of the employees of the Company, and all other known
resources to continue its business for the foreseeable future, statutory dues as were due and payable by the Company, as at
the Financial Statements continue to be prepared on the said the Balance Sheet date have been paid, or where relevant are
basis. being provided for.
The Directors consider that in preparing the Financial On behalf of the Board
Statements, the Company has used appropriate accounting
policies, consistently applied, and supported by reasonable
and prudent judgments and estimates, and that all accounting
standards which they consider to be applicable have been D. K. Rajapaksa D. G. P.S. Abeygunawardana
followed. Managing Director Director / General Manager
The Directors are responsible for ensuring that the Company

keeps accounting records which disclose with reasonable Colombo
accuracy the financial position of the Company, and which 1st August 2014.
enable them to ensure that the Financial Statements comply
with the Companies Act, No.07 of 2007.

71
auDit
committee report
T he Audit Committee comprises three Non-Executive 2. Reviewing the integrity and adequacy of the disclosures
Directors the majority of whom are independent. The in the financial statements of the company in accordance
Committee is chaired by Mr T.K. Bandaranayake, who is a with the Companies Act, No.7 of 2007, the Sri Lanka
Fellow Member of the Institute of Chartered Accountants of Sri Accounting Standards and Accounting Policies which are
Lanka and former Senior Partner of Messrs Ernst & Young. consistently applied.
3. Reviewing the financial reporting system to ensure
Members of the Audit Committee the accuracy and timelines of the financial statements
and Details of Meetings held produced.
The attendance of the members of the Audit Committee was 4. Reviewing and ensuring the adequacy and effectiveness
as follows: of the Company’s internal control systems and risk

management.

2013 2013 2013 2014 2014 Attendance
Mr T K Bandaranayake
(Chairman) NE/I √ √ √ √ √ 5/5
Member’s attendance at the Audit Committee meetings of Samson International Plc
Note: Mr G H A Wimalasena was unable to attend two meetings as he was away on overseas tours.
The Audit Committee held five meetings during the year under 5. Oversight on the compliance by the company with the
review. The proceedings of the Audit Committee are regularly requirements of the statutory and regulatory framework.
reported to the Board of Directors. Compliance is monitored quarterly through the ‘Company
Reports’.
Role of the Audit Committee 6. Making recommendations to the Board of Directors on the
The functions of the Audit committee are in line with the appointment/ re-appointment and the remuneration of the
requirement of the Securities & Exchange Commission of Sri external auditors based on their performance.
Lanka and the best practices of Corporate Governance. These 7. Examining any non-audit work performed by the auditors
included, inter alia, ensuring the effectiveness of internal to ensure that their independence is not impaired.
controls and procedures for financial reporting purposes
and the integrity of financial statements as well as the Internal Audit Function
independence of the external auditors. The Audit Committee reviews the Quarterly Internal Audit
The Audit Committee was responsible for the following: Reports. The internal audit function is carried out by M/s Ernst
1. Meetings with the auditors to discuss any problems and & Young. The internal audit reports are reviewed thoroughly
reservations arising from the audit and any other matters and recommendations are made for rectification.
that the auditor may wish to discuss independent of the
management.

72
auDit committee report (contd...)
Conclusion The Committee has recommended to the Board of Directors
that Messrs HLB Edirisinghe & Co., Chartered Accountants, be
The committee reports to the Board of Directors, identifying
re-appointed as the Auditors for the financial year ending 31st
the matters in respect of which it considers that action or
March 2015, subject to the approval of the shareholders at
improvement is needed and making recommendations as to
the Annual General Meeting at a fee to be determined by the
the steps to be taken.
management.
The Audit Committee is satisfied that the company’s accounting

policies, operational controls and risk management practices
T. K. Bandaranayake
provide reasonable assurance that the affairs of the Company
Chairman
are managed in accordance with the Company policies and
Audit Committee
that the Company assets are properly accounted for and
adequately safeguarded.
Colombo
1st August 2014
Audit Committee

73
repOrt OF
the remuneration committee
T he Remuneration Committee, appointed by and
Remuneration Policy:
responsible to the Board of Directors, consists of two
In a highly competitive environment, attracting and retaining
independent, Non- Executive Directors, Mr G.H.A. Wimalasena
high caliber executives is a key challenge faced by the Group.
and Mr T.K. Bandaranayake and another Non- Executive
In this context, the Committee took into account competition,
Director Mr D.M. Rajapaksa. The committee is chaired by Mr
market information and performance evaluation methodology
G.H.A. Wimalasena.
in declaring the overall remuneration policy.
Role of the Committee: The Remuneration Committee held two meetings during the
The Remuneration Committee reviews and recommends to the
year under review.
Board of Directors the policy on remuneration for the executive
staff, specific remuneration packages for the Executive Directors
and revision of fees for the Non- Executive Directors. Directors’
remuneration for the financial year 2013/14 is Rs. 8,376,395
G.H.A. Wimalasena
(last year Rs. 8,057,195).
Chairman
Colombo
1st August 2014.
74
Financial
review
“During the year, the Company reduced the Gross Profit Margin
finance cost by 62%, reduced gearing to 6.8% The Company has recorded a gross profit of Rs 145 mn as
and took many investments decisions… “ against Rs150 mn in the previous year. The main reason for the
drop in gross profits was a decrease in export sales, increase in
Revenue energy costs and salaries and wages, unfavourable exchange
D uring the year ended 31st March 2014, the Company

recorded a turnover of Rs. 953 mn as against Rs 974 mn
rates of India, South Africa and Japan and also the amount
written off from non-moving finished goods stocks and raw
materials. The Gross Profit Ratio in the current year as well
in the previous year. It is noted that there was a growth of 7%
as in the previous year is 15%. The reduction of production
in local sales in the year. Local sales went up by Rs 21 mn from
overheads and wastage levels were achieved effectively.
Rs. 318 mn in the previous year to Rs. 339 mn in the current
Waste levels in jar sealing rings came down this year to an
year. However, export sales have come down by 6.5% or by Rs
unprecedented level.
43 mn from Rs. 656 mn in the previous year to Rs. 613 mn in
the current financial year.
Operational Profit Margin (Profit
In local sales, it is noted that sales of V strap and shoe soles before Finance cost)
have gone up significantly in the current financial year. The Operational Profit in the current financial year is Rs
Rubber mats, road humps and rubber hose sales have been 47.7 mn and last year it was Rs. 54.0 mn. The selling and
growing gradually. We have still not seen a significant sales distribution cost was Rs. 24 mn in the current year as against
improvement in floorings. We have tapped almost every Rs 24.8 mn in the previous year while Administrative Overheads
customer in the pipe joints market and had a significant sales was Rs. 75 mn during the year under review as against Rs 72.7
growth in the year. We will develop our local sales further mn. This year’s Administrative Overhead cost includes the
through aggressive sales promotions and by strengthening and amount written off of intangible assets. The exchange gain
restructuring the Marketing Department. earned due to the depreciation of the local currency against
foreign currencies was Rs.17.7 mn in the current year as
In exports sales, we noted a marginal drop in sales in jar sealing against Rs 6.2 mn in the previous year. However, we lost some
rings, hot water bottles and rubber mats. During the year, we revenue due to the adverse impact from the exchange rates of
had experienced a favourable gain from Euro exchange rates. India, South Africa and Japan. The operational profit to sales
However, we encountered an adverse impact on our sales ratio was 5.0% (previous year 5.6%).
from India, South Africa and Japan due to the devaluation
of their currencies, which affected our sales of hot water
Profit / (Loss) before Taxation
bottles, mud flaps and bath mats. It is noted that that there
The profit before taxation in the current year is Rs. 64.8 mn
was a significant growth in rubber pallet bands and some
as compared to the profit of Rs 51.0 mn in the previous
improvements in sales from floorings.
year. The current year’s profit of Rs. 64.8 mn was recorded
after amortization of Rs. 6.3 mn intangible assets, Rs. 13.2
Out of the total revenue of Rs 953 mn for the year ended 31st
mn of non- moving finished goods stocks and raw materials.
March 2014, 64% was earned from exports sales and the
The finance cost decreased by 62 % from Rs. 9.9 mn in the
balance 36% from local sales.
previous year to Rs. 3.7 mn in the current financial year. The
75
Financial review (contd...)
Company was able to earn a gain of Rs 0.5 mn from the
Investments
forward exchange contracts which commenced in the last
During the year, the Company invested Rs 15 mn in a flash
quarter. We hope to earn more gains from foreign exchange
less automated V strap press, Rs 3 mn in a mill and another
contracts in the coming years.
Rs. 2mn in a press line. Another Rs. 1.5 mn was invested in
a water treatment plant. The company was able to invest in
Taxation Debentures, Treasury Bills and Fixed deposits amounting to Rs.
During the year, tax provision increased due to the deferred tax
50.3 mn in the financial year under review. We have planned
adjustment.
to invest another Rs 6 mn in new software in the IFS system in
2013/14 2012/2013
2014/15.
Rs. Rs.
Tax on profits of the year 4,535,269 3,042,594 Market Capitalization

Deferred tax expense/(Income) 3,955,316 (7,481,140) The market capitalization of the Company was Rs. 339.4 mn at
Total 8,490,585 (4,438,546) the closing price of the share, up from Rs. 316.3 mn recorded
in the previous year. During the year under review, the highest
After the tax provision, the Company recorded a profit of traded price of the Company’s share was Rs. 105.00, while the
Rs 56.3 mn in the current year as against Rs.55.5 mn in the lowest price was Rs. 74.00. 49,773 shares were traded during
previous year. the year and the share price closed for the year at Rs. 88.20.
Ratios
The gearing ratio in the current year is 6.8% as against 13.2%
in the previous year. Earnings per share are Rs. 14.64 in the
current year as against Rs. 14.43 in the previous year. The
market price as at 31st March 2014 was Rs. 88.20 (last year Rs
82.20).

76
auDitOrs
report
reasonable assurance whether the financial statements are free
from material misstatement.
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
TO THE SHAREHOLDERS OF SAMSON INTERNATIONAL PLC
principles used and significant estimates made by management,
as well as evaluating the overall financial statement
Report on the Financial Statements presentation.
We have audited the accompanying financial statements of
Samson International PLC., which comprise the statement of
We have obtained all the information and explanations which
financial position as at 31st March 2014, and the statements
to the best of our knowledge and belief were necessary for
of income, other comprehensive income, statement of changes
the purposes of our audit. We therefore believe that our audit
in equity and cash flow statement for the year then ended,
provides a reasonable basis for our opinion.
and summary of significant accounting policies and other
explanatory notes.
Opinion
In our opinion, so far as appears from our examination, the
Management’s Responsibility for the company maintained proper accounting records for the year
Financial Statements ended March 31, 2014 and the financial statements give a true
Management is responsible for the preparation and fair
and fair view of the company’s State of Affairs as at March
presentation of these financial statements in accordance with
31, 2014 and its financial performance and cash flows for
Sri Lanka Accounting Standards. This responsibility includes;
the year then ended in accordance with Sri Lanka Accounting
designing, implementing and maintaining internal control
Standards.
relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether
Report on Other Legal and Regulatory
due to fraud or error; selecting and applying appropriate
Requirements
accounting policies, and making accounting estimates that are
These financial statements also comply with the requirements
reasonable in the circumstances.
of Section 151(2) of the Companies Act No 07 of
2007.
Scope of Audit and Basis of
Opinion
Our responsibility is to express an opinion on these financial
HLB Edirisinghe & Co.
statements based on our audit. We conducted our audit
Chartered Accountants
in accordance with Sri Lanka Auditing Standards. Those
Colombo
standards require that we plan and perform the audit to obtain
1st August 2014

77
stateMent
of comprehensive income
FOR THE YEAR ENDED 31ST MARCH 2014 2013
NOTES Rs. Rs.
Revenue 6 952,561,234 973,858,289
Cost of sales (807,751,637) (824,008,726)
Gross Profit 144,809,597 149,849,563
Other income 7 2,282,319 1,749,323
Distribution cost (24,019,314) (24,801,170)
Administrative expenses (75,308,710) (72,737,442)
Operating Profit 8 47,763,892 54,060,274
Finance income 9.1 20,856,704 6,916,633
Finance cost 9.2 (3,780,035) (9,900,028)
Net Finance Income 17,076,669 (2,983,395)
Profit before income taxation 64,840,561 51,076,879
Income tax expense 10 (8,490,585) 4,438,546

Profit for the year 56,349,976 55,515,425
Other comprehensive income, net of tax - -
Total Comprehensive Income for the year, net of tax 56,349,976 55,515,425
Earnings per share - Basic 11 14.64 14.43
Dividends per share 12 2.00 2.00
Note : All values are in Rupees, unless otherwise stated.

Figures in brackets indicate deductions.
The Significant Accounting Policies and Notes on pages 82 to 107 are an integral part of these financial statements.

78
stateMent
of Financial position
AS AT 31.03.2014 31.03.2013
ASSETS NOTES Rs. Rs.
Non Current Assets
Property, plant and equipment 13 172,218,635 174,449,120
Intangible assets 14 2,557,332 8,950,642
Available for sale financial assets 15 21,354,300 -
Other financial assets 16 29,000,000 -
Deferred tax assets 17 4,975,187 6,855,791
230,105,453 190,255,553
Current Assets
Inventories 18 125,296,412 143,785,662
Trade and other receivables 19 229,125,850 226,059,880
Tax recoverable 8,716,706 13,251,975
Cash and cash equivalents 20 60,880,788 19,755,466
424,019,756 402,852,983
Total Assets 654,125,209 593,108,536
EQUITY AND LIABILITIES

Stated capital 21 105,752,241 105,752,241
General reserve 110,000,000 110,000,000
Retained earnings 233,806,250 185,152,222
Total Equity 449,558,491 400,904,463
Non- Current Liabilities
Deferred tax liability 17 10,905,774 8,831,062
Retirement benefit obligation 22 15,129,866 14,528,107
26,035,640 23,359,169
Current Liabilities
Trade and other payables 23 145,688,020 108,040,574
Short term borrowings 24 32,843,058 60,804,330
178,531,078 168,844,904
Total Liabilities 204,566,718 192,204,073
Total Equity And Liabilities 654,125,209 593,108,536
I certify that above Financial Statements comply with the requirements of Companies Act No.07 of 2007.
T. P. Kahanda Gamage
Head of Finance
The Board of Directors are responsible for the preparation and presentation of these financial statements. Signed for and on behalf
of the Board,
D. K. Rajapaksa D. G. P. S. Abeygunawardana
Managing Director Director / General Manager
Colombo
1st August 2014
79
stateMent
of changes in equity
FOR THE YEAR ENDED 31ST MARCH 2014
Stated General Retained
Capital Reserve Earnings Total
Rs. Rs. Rs. Rs.
Restated Balance as at 1st April 2012 105,752,241 110,000,000 137,332,745 353,084,986
Profit for the year - - 55,515,425 55,515,425
Other Comprehensive Income - - - -
Total Comprehensive Income for the year - - 55,515,425 55,515,425
Transactions with equity holders
Dividends Paid - - (7,695,948) (7,695,948)
Balance as at 31st March 2013 105,752,241 110,000,000 185,152,222 400,904,463
Profit for the year - - 56,349,976 56,349,976
Other Comprehensive Income - - - -
Total Comprehensive Income for the year - - 56,349,976 56,349,976
Transactions with equity holders
Dividends Paid - - (7,695,948) (7,695,948)
Balance as at 31st March 2014 105,752,241 110,000,000 233,806,250 449,558,491
Note : The purpose of the General reserve is to utilize in future investments and expansions.


80
stateMent
of cash Flows
NOTES Rs. Rs.
CASH FLOW FROM OPERATING ACTIVITIES

Profit /(Loss) before taxation 64,840,561 51,076,879
Adjustment for :
Depreciation 13 27,768,868 26,526,938
Amortization of intangible assets 6,393,310 1,278,660
(Profit)/Loss on disposal of property, plant & equipment (331,681) (1,166,071)
(Profit)/Loss on scrapping plant & equipment - 109,382
Increase in retirement benefit obligation 22 1,539,613 7,673,597
Finance income 9.1 (20,856,704) (6,916,633)
Finance cost 9.2 3,780,035 9,900,028
Profit Before Working Capital Changes 83,134,002 88,482,780

(Increase)/ decrease in inventories 18,489,250 (18,645,717)
(Increase)/ decrease in trade & other receivable (3,065,970) (16,127,420)
Increase/ (decrease) in trade & other payable 37,647,447 (35,925,069)
Cash generated from operations 136,204,729 17,784,574

Interest paid 9.2 (3,780,035) (9,900,028)
Income tax paid - (1,594,745)
Retiring gratuity paid 22 (937,855) (3,051,511)
Net cash generated from operating activities 131,486,839 3,238,291
CASH FLOW FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment 13 (25,856,701) (20,118,377)
Investment in debentures (21,354,300) -
Investment in treasury bills (10,000,000) -
Investment in fixed deposits (19,000,000)
Interest income 9.1 20,856,704 6,916,633
Proceeds from sale of property, plant & equipment 650,000 2,366,071
Net cash used in investing activities (54,704,297) (10,835,673)
CASH FLOW FROM FINANCING ACTIVITIES
Dividend paid (7,695,948) (7,695,948)
Proceeds from short term borrowings 24 161,650,914 160,977,140
Repayment of short term borrowings 24 (177,273,998) (128,304,333)
Net cash used in financing activities (23,319,032) 24,976,859

Net (decrease) / increase in cash and cash equivalents 53,463,510 17,379,477
Cash and cash equivalents at the beginning of the year 4,236,943 (13,142,534)
Cash and Cash equivalents at the end of the year 20 57,700,453 4,236,943

1st August 2014

81
nOtes
to the Financial statements
1. General Information Accounting and Auditing Standards Act No. 15 of
1995.
1.1 General
The Company is a public limited liability company 2.2. Basis of Measurement
incorporated and domiciled in Sri Lanka. The address of The financial statements have been prepared on the
its registered office is No. 110, Kumaran Ratnam Road, historical cost basis, except that the retirement benefit
Colombo 02 and the principle place of business is obligations are measured at the present value of the
situated at Akuressa Road, Bogahagoda, Angulugaha, defined benefit plans as explained in the respective
Galle. notes to the financial statements.
1.2 Principal Activities and Nature of Operations 2.2.1 Going concern
During the year, the principal activities of the Company The Directors have made an assessment of the
were manufacture and export of unhardened rubber Company’s ability to continue as a going concern in
products to the international and local markets. the foreseeable future and they do not foresee a need
for liquidation or cessation of trading. Therefore, the
financial statements continued to be prepared on the
1.3 Parent Enterprise & Ultimate Parent Enterprise going concern basis
The Company’s parent undertaking is DSI Samson

Group (Pvt) Ltd which holds effectively 55.79% of 2.3. Functional and Presentation Currency
shares of Samson International PLC collectively inclusive The Financial Statements are presented in Sri Lankan
of Company holding. Rupees which is the Company’s functional currency.
1.4 Approval of Financial Statements 2.4. Use of Estimates and Judgments
These financial statements have been approved for The preparation of financial statements in conformity
issue by the Board of Directors on 1st August 2014 with SLFRS requires management to make judgments,
estimates and assumptions that affect the application
1.5 Number of Employees of accounting policies and the reported amounts of
The total number of employees stod at 324 as at 31st assets and liabilities and disclosure of contingent assets
March 2014. (302 as at 31st March 2013) and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses
2. Basis of Preparation during the reporting period. Although the judgments

and estimates are based on management’s best
2.1. Statement of Compliance knowledge of the current events and actions, actual
The Company prepares the financial statements in results may ultimately differ from those estimates. It
accordance with the Sri Lanka Accounting Standards also requires management to exercise its judgment
(LKAS & SLFRS) issued by the Institute of Chartered in the process of applying the company’s accounting
Accountants of Sri Lanka and the requirements of policies.
the Companies Act No. 07 of 2007 and Sri Lanka

82
nOtes to the Financial statements (contd...)
Information about critical estimates and judgments All property, plant and equipment are stated at
in applying accounting policies that have the most historical cost less depreciation. Historical cost
significant effect on the amounts recognized in the includes expenditure that is directly attributable to the
financial statements is provided in Note 04. acquisition of the items.
3. Significant Accounting Policies Where the carrying amount of an asset is greater than
The accounting policies set out below have been its estimated recoverable amount, it is written down
applied consistently to all periods presented in these immediately to its recoverable amount.
financial statements of the company
3.2.1.2. Subsequent Costs
3.1. Foreign Currency The cost of replacing part of an item of property, plant
and equipment is recognized in the carrying amount
3.1.1. Foreign Currency Transactions of the item if it is probable that the future economic
In preparing the Financial Statements of the individual benefits embodied within the part will flow to the
entities, transactions in currencies other than the company and its cost can be measured reliably. The
entity’s functional currency (foreign currencies) carrying amount of the replaced part is derecognized.
are recorded in the functional currencies using
the exchange rates prevailing at the dates of the 3.2.1.3. Derecognition
transactions. The carrying amount of an item of property, plant and
equipment is derecognized on disposal or when no
At each reporting date, monetary items denominated future economic benefits are expected from its use
in foreign currencies are translated at the closing rate. or disposal. Gains or losses on derecognition of the
asset are determined by comparing the proceeds from
Exchange differences arising on the settlement of disposal with the carrying amount of property, plant &
monetary items, and on the translation of monetary equipment and are recognized within other income in
items, are included in profit or loss for the period. the statement of comprehensive income.
3.2. Assets and the Bases of their Valuation 3.2.1.4. Depreciation

Assets classified as current assets in the Statement of
Financial Position are cash, bank balances and those Depreciation is calculated over the depreciable
which are expected to be realized in cash, during the amount, which is the cost of an asset, or other amount
normal operating cycle of the Company’s business, or substituted for cost, less its residual value.
within one year from the reporting date, whichever
is shorter. Assets other than current assets are those Depreciation is recognized in profit or loss on a straight
which the Company intends to hold beyond a period line basis over the estimated useful lives of each
of one year from the reporting date. part of an item of property, plant and equipment,
since this most closely reflects the expected pattern
3.2.1. Property, Plant and Equipment of consumption of the future economic benefits
embodied in the asset. Leased assets are depreciated
3.2.1.1. Recognition and Measurement over the shorter of the lease term and their useful lives
Property, Plant and Equipment are stated at cost less unless it is reasonably certain that the company will
accumulated depreciation and accumulated impairment obtain ownership by the end of the lease term. Land is
losses. not depreciated.

83
The estimated useful lives are as follows: 3.2.2.3. Amortisation
Amortization is calculated over the cost of the asset,
Asset Category Useful Life Depreciation or other amount substituted for cost, less its residual
(Years) Rate (%) value.
Buildings 20 5% Amortization is recognized in the profit or loss on a
Storage Tank 10 10% straight line basis over the estimated useful lives of
intangible assets, other than goodwill, from the date
Plant & Machinery 10 10%
that they are available for use, since this most closely
Machine Accessories 10 10%
reflects the expected pattern of consumption of the
Furniture and Fittings 10 10%
future economic benefits embodied in the asset. The
Office Equipment 10 10% estimated useful life has been re-estimated to 5 years
Motor Vehicles 5 20% instead of the previous estimate of 10 years which is
shown below:
Depreciation of an asset begins when it is available for
use where as depreciation of an asset ceases at the Category Useful Depreciation Useful
earlier of the date that the asset is classified as held for of Asset Life (Years) Rate (%) Life (Years)
sale and the date that the asset is derecognized. Re-estimated up to 2012/13
ERP Computer
Depreciation method, useful lives and residual values Software 5 20% 10
are reviewed at each financial year end and adjusted if
Amortisation methods, useful lives and residual values
appropriate.
are reviewed at each financial year end and adjusted if
appropriate.
3.2.2. Intangible Assets
Changes in the expected useful life or the expected

3.2.2.1. Software
pattern of consumption of future economic benefits
All computer software cost incurred, which are not
embodied in the asset is accounted for by changing the
internally related to associate hardware, which can be
amortisation period or method, as appropriate, and are
clearly identified, reliably measured and it is probable
treated as changes in accounting estimates.
that they will lead to future economic benefits, are
included in the Statement of Financial Position under
3.2.2.4 Derecognising
the category of intangible assets.
Gains or losses arising from derecognising of an
intangible assest are measured as the difference
Intangible assets acquired separately are measured on
between the net disposal proceeds and the carrying
initial recognition at cost.
amount of the asset and are recognised in the income
statement when the asset is derecognised.
Following initial recognition, intangible assets are
carried at cost less accumulated amortisation and
3.2.3 Impairment of non-financial assets
accumulated impairment losses, if any.
Assets that have an indefinite useful life are not
subject to amortisation and are tested annually for
3.2.2.2 Subsequent Expenditure
impairment. Assets that are subject to amortisation are
Subsequent expenditure is capitalised only when it
reviewed for impairment whenever events or changes
increases the future economic benefits embodied in the
in circumstances indicate that the carrying amount may
specific asset to which it relates. All other expenditure
not be recoverable. An impairment loss is recognised
is recognized in profit or loss as incurred.
for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable
84
amount is the higher of an asset’s fair value less costs effective interest method, less provision for impairment.
to sell and value in use. For the purposes of assessing A provision for impairment of trade receivables is
impairment, assets are grouped at the lowest levels established when there is objective evidence that
for which there are separately identifiable cash flows the Company will not be able to collect all amounts
(cash-generating units). Non-financial assets other than due according to the original terms of receivables.
goodwill that suffered impairment are reviewed for Significant financial difficulties of the debtor, probability
possible reversal of the impairment at each reporting that the debtor will enter bankruptcy or financial
date. reorganisation, and default or delinquency in payments
are considered indicators that the trade receivable is
3.2.4. Inventories impaired. The amount of the provision is the difference
Inventories are measured at the lower of cost and net between the asset’s carrying amount and the present
realizable value. value of estimated future cash flows, discounted at the
Costs incurred in bringing each product to its present original effective interest rate.
location and condition are accounted for as follows:

The carrying amount of the asset is reduced
through the use of an allowance account, and the
a) All inventory items except manufactured
amount of the loss is recognised in the statement of
inventories and work-in-progress are measured
comprehensive income.
using first in, first out basis.
3.2.5.3. Trade Receivables Write Off

b) Manufactured inventories and work-in-progress are
When a trade receivable is uncollectible, it is written
measured at weighted average factory cost which
off against the allowance account for trade receivables.
includes all direct expenditure and appropriate
Subsequent recoveries of amounts previously written
shares of production overhead based on normal
off are credited against distribution expenses in the
operating capacity but exluding borrowing costs.
statement of comprehensive income.
Net realisable value is the estimated selling price in
the ordinary course of business, less the estimated
3.2.6. Cash and Cash Equivalents
costs of completion and the estimated costs
Cash and cash equivalents comprise cash balances, call
necessary to make the sale.
deposits, demand deposits, and short term highly liquid
investments readily convertible to known amounts
3.2.4.1 Allowance for Impairment
of cash and subject to insignificant risk of changes
All inventory items are tested for impairment
in value net of bank overdrafts that are repayable on
periodically. demand for the purpose of the Statement of Cash
Flows.
3.2.5. Trade Receivables
3.3. Financial Instruments

3.2.5.1. Recognition and Measurement
Trade receivables are amounts due from customers for 3.3.1. Financial Assets
goods sold or services performed in the ordinary course
of business. If collection is expected in one year or less 3.3.1.1. Initial Recognition and Measurement
(or in the normal operating cycle of the business if Financial assets within the scope of LKAS 39 are
longer), they are classified as current assets. If not, they classified as financial assets at fair value through
are presented as non-current assets. profit or loss, loans and receivables, held-to-maturity
investments or available-for-sale financial assets, as
3.2.5.2. Provision for Impairment appropriate. The Company determines the classification
Trade receivables are recognised initially at fair value of its financial assets at initial recognition. All financial
and subsequently measured at amortised cost using the assets are recognised initially at fair value plus, in the

85
case of assets not at fair value through profit or loss, comprehensive income in the available-for-sale reserve
directly attributable transaction costs. Purchases or sales until the investment is derecognised, at which time the
of financial assets that require delivery of assets within cumulative gain or loss is recognised in other operating
a time frame established by regulation or convention in income, or determined to be impaired, at which time
the market place (regular way trades) are recognised on the cumulative loss is reclassified to the statement of
the trade date, i.e., the date that the company commits comprehensive income in finance costs and removed
to purchase or sell the asset. from the available-for-sale reserve. Interest income on
available-for-sale debt securities is calculated using the
The company’s financial assets include cash and short effective interest method and is recognised in profit or
term deposits, trade and other receivables, loans and loss.
other receivables and other financial assets.
The Company evaluates its available-for-sale financial
3.3.1.2. Subsequent Measurement assets to determine whether the ability and intention
The subsequent measurement of financial assets to sell them in the near term is still appropriate. When
depends on their classification as follows: the Company is unable to trade these financial assets
due to inactive markets and management’s intention
Financial assets at fair value through profit and to do so significantly changes in the foreseeable future,
loss the Company may elect to reclassify these financial
Financial assets at fair value through profit and loss assets in rare circumstances. Reclassification to loans
include financial assets designated as such at fair value and receivables is permitted when the financial assets
through profit or loss at initial recognition. Financial meet the definition of loans and receivables and the
assets are classified as held for trading if they are Company has the intent and ability to hold these
acquired for the purpose of selling in the near term. assets for the foreseeable future or until maturity.
Subsequent to initial recognition, financial assets at Reclassification to the held-to-maturity category is
fair value through profit loss are carried at fair value permitted only when the entity has the ability and
in the statement of financial position with fair value intention to hold the financial asset accordingly.
gains or losses recognized through the Statement of For a financial asset reclassified out of the available-for
Comprehensive Income. sale category, any previous gain or loss on that asset
that has been recognised in equity is amortised to profit
The company did not have any financial assets classified or loss over the remaining life of the investment using
as fair value through profit or loss as at 31st March the EIR. Any difference between the new amortised
2014. cost and the expected cash flows is also amortised over
the remaining life of the asset using the EIR (Efective
Available-for-Sale Financial Investments Interest Rate). If the asset is subsequently determined
Available-for-sale financial investments include equity to be impaired, then the amount recorded in equity is
and debt securities. Equity investments classified as reclassified to the statement of comprehensive income.
available-for-sale are those, which are neither classified
as held for trading nor designated at fair value through Held-to-maturity Investments
profit or loss. Debt securities in this category are those Non-derivative financial assets with fixed or
which are intended to be held for an indefinite period determinable payments and fixed maturities are
of time and which may be sold in response to needs
classified as held-to-maturity when the Company
for liquidity or in response to changes in the market
has the positive intention and ability to hold them to
conditions.
maturity.
After initial measurement, available-for-sale financial

After initial measurement, held-to-maturity investments
investments are subsequently measured at fair value
are measured at amortised cost using the effective
with unrealised gains or losses recognised as other
86
interest method, less impairment. Amortised cost is of the asset, but has transferred control of the
calculated by taking into account any discount or asset.
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included On derecognition of a financial asset, the difference
in finance income in the statement of comprehensive between the carrying amount of the asset (or the
income. The losses arising from impairment are carrying amount allocated to the portion of the asset
recognised in the statement of comprehensive income transferred), and the sum of (i) the consideration
in finance costs. received (including any new asset obtained less any
new liability assumed) and (ii) cumulative gain or loss
The company did not have any financial assets classified that had been recognized in other comprehensive
as held to maturity investments as at 31st March income is recognized in profit or loss.
2014.
3.3.2. Impairment of Financial Assets
Loans and Receivables The Company assesses at each reporting date whether
Loans and receivables are non-derivative financial assets there is any objective evidence that a financial asset or
with fixed or determinable payments that are not a group of financial assets is impaired. A financial asset
quoted in an active market. After initial measurement, or a group of financial assets is deemed to be impaired
such financial assets are subsequently measured at if, and only if, there is objective evidence of impairment
amortised cost using the effective interest rate method as a result of one or more events that has occurred
(EIR), less impairment. Amortised cost is calculated after the initial recognition of the asset (an incurred
by taking into account any discount or premium on ‘loss event’) and that loss event has an impact on the
acquisition and fees or costs that are an integral part of estimated future cash flows of the financial asset or the
the EIR. The EIR amortisation is included under finance group of financial assets that can be reliably estimated.
income in the statement of comprehensive income.

3.3.3. Financial Liabilities
The losses arising from impairment are recognised in
the statement of comprehensive income under finance
3.3.3.1. Initial Recognition and Measurement
costs.
Financial liabilities within the scope of LKAS 39 are
classified as financial liabilities at fair value through
3.3.1.3. Derecognition
profit or loss, loans and borrowings, as appropriate.
A financial asset (or, where applicable a part of a
The Company determines the classification of its
financial asset or part of a group of similar financial
financial liabilities at initial recognition.
assets) is derecognised when:
All financial liabilities are recognised initially at fair value

• The rights to receive cash flows from the asset have
plus, in the case of loans and borrowings, transaction
expired
costs that are directly attributable to the acquisition or
issue of such financial liability.
• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
The company’s financial liabilities include trade and
obligation to pay the received cash flows in full
other payables, bank overdrafts, loans and borrowings,
without material delay to a third party under a
financial guarantee contracts, and derivative financial
‘pass-through arrangement; and either
instruments.
(a) The Company has transferred substantially all

3.3.3.2. Subsequent Measurement
the risks and rewards of the asset, or
Financial liabilities at fair value through profit or
loss
(b) The Company has neither transferred nor
Financial liabilities at fair value through profit or loss
retained substantially all the risks and rewards
include financial liabilities held for trading and financial

87
liabilities designated upon initial recognition at fair 3.4.2. Defined Contribution Plans – Employees’
value through profit or loss.
Provident Fund and Employee Trust Fund
Financial liabilities are classified as held for trading All employees who are eligible for Employees’ Provident
if they are acquired for the purpose of selling in the Fund Contributions and Employees’ Trust Fund
near term. This category includes derivative financial Contributions are covered by relevant contributions
instruments entered into by the Company that are funds in line with the relevant statutes. Employer’s
not designated as hedging instruments in hedge contributions to the defined contribution plans are
relationships as defined by LKAS 39. recognized as an expense in profit or loss when
Gains or losses on liabilities held for trading are incurred.
recognised in the statement of comprehensive income.
3.5 Stated Capital
The Company has not designated any financial Stated capital consists solely of ordinary share capital.
liabilities upon initial recognition as fair value through Ordinary shares are classified as equity.
profit or loss.
Incremental costs directly attributable to the issue of
Loans and Borrowings new shares are shown as a deduction, net of tax, in
After initial recognition, interest bearing loans and equity from the proceeds.
borrowings are subsequently measured at amortised
cost using the effective interest rate method unless the 3.6 Provisions
effect of discounting would be insignificant in which A provision is recognized if, as a result of a past event
case they are stated at cost. the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
Amortised cost is calculated by taking into account probable that an outflow of economic benefit will be
any discount or premium on acquisition and fees required to settle the obligation.
or costs that are an integral part of the EIR. The
EIR amortisation is included in finance costs in the 3.7. Statement of Comprehensive Income
statement of comprehensive income.
3.7.1. Revenue
3.3.3.3 Derecognition
A financial liability is derecognised when the obligation 3.7.1.1. Revenue Recognition
under the liability is discharged or cancelled or expires. Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company
3.4. Post Employment Benefits and the revenue and the associated costs incurred or
to be incurred can be reliably measured. Revenue is
3.4.1. Defined Benefit Plan measured at the fair value of the consideration received
Defined benefit plans are post-employment benefit or receivable, net of trade discounts and sales taxes,
plans other than defined contribution plans. The and after eliminating sales within the Company. The
liability recognized in the statement of financial following specific criteria are used for the purpose of
position in respect of defined benefit plan is the present recognition of revenue.
value of the defined benefit obligation at he reporting
date. The defined benefit obligation is calculated using 3.7.1.1.1 Sale of Goods
the “Projected Unit Credit Method”. Revenue from the sale of goods is recognized when the
significant risks and rewards of ownership of the goods
Past service costs are recognized immediately in the
have passed to the buyer, usually on delivery of the
profit or loss while the actuarial gains and losses are
goods.
charged or credited to profit or loss in the period in
which they arise. The liability is not externally funded.
88
3.7.1.1.2. Other Income 3.7.4. Taxation
Interest Income 3.7.4.1. Current Taxes

For all financial instruments measured at amortised Current Income tax liabilities for the current and prior
cost and interest bearing financial assets classified periods are measured at the amount expected to be
as available-for-sale, interest income or expense is recovered from or paid to the Commissioner General
recorded using the effective interest rate (EIR), which of Inland Revenue. The tax rates and tax laws used to
is the rate that exactly discounts the estimated future compute the amount are those that are enacted or
cash payments or receipts through the expected life substantively enacted by the reporting date.
of the financial instrument or a shorter period, where The provision for income tax on Sri Lankan operation
appropriate, to the net carrying amount of the financial is based on the elements of income and expenditures
asset or liability. Interest income is included in finance reported in the Financial Statements and computed
income in the statement of comprehensive income. with in accordance with the provisions of the Inland
Revenue Act.
3.7.2. Expenditure Recognition
The relevant details are disclosed in the respective notes
3.7.2.1. Operating Expenses to the Financial Statements.
All expenses incurred in day to day operations of the

business and in maintaining the property, plant and 3.7.4.2. Deferred Taxation
equipment in a state of efficiency has been charged to Deferred taxation is provided, using the liability
the statement of comprehensive income in arriving at method, on all temporary differences at the reporting
the profit for the year. Provision has also been made date between the tax bases of assets and liabilities and
for impairment of financial assets, slow moving stocks, their carrying amounts for financial reporting purposes.
all known liabilities and depreciation on property, plant

Deferred tax assets are recognised for all deductible
and equipment.
temporary differences, carry forward of unused tax
losses and unused tax credits to the extent that it is
3.7.2.2. Borrowing Costs
probable that future taxable profits will be available
Borrowing costs directly attributable to acquisition,
against which the deductible temporary differences
construction or production of assets that necessarily
and carry forward of unused tax losses / credits can be
takes a substantial period of time to get ready for its
utilised.
intended use or sale are capitalised as part of the cost
of the respective assets. All other borrowing costs are
The carrying amount of deferred tax assets is reviewed
expensed in the period they occur. Borrowing costs
at each reporting date and reduced to the extent that
consist of interest and other costs that Company incurs
it is no longer probable that the related tax benefit will
in connection with the borrowing of funds.
be realised.
3.7.3. Net Finance Income

Deferred tax assets and liabilities are measured at the
Finance costs comprise interest expense on borrowings,
tax rates that are expected to apply to the year when
unwinding of the discount on provisions, changes in
the asset is realized or the liability is settled, based
the fair value of financial assets at fair value through
on tax rates (and tax laws) that have been enacted or
profit or loss, impairment losses recognized on financial
substantively enacted as at the reporting date.
assets, borrowing costs that are not directly attributable
to the acquisition, construction or production of a
Deferred tax assets and deferred tax liabilities are offset
qualifying asset are recognised in profit or loss using
if legally enforceable right exists to set off current
the effective interest method.
tax assets against current tax liabilities and when the
deferred taxes relate to the same taxable entity and the
same taxation authority.

89
3.8. Related Party Transactions Sri Lanka Accounting Standard- SLFRS 9 ‘Financial
Disclosure has been made in respect of the transactions Instruments’
in which one party has the ability to control or exercise The objective of this Accounting Standard is to
significant influence over the financial and operating establish principles for the financial reporting of
policies/decisions of the other, irrespective of whether a financial assets and financial liabilities that will present
price is being charged or not. relevant and useful information to users of financial
The relevant details are disclosed in the respective notes statements for their assessment of the amounts, timing
to the Financial Statements. and uncertainty of an entity’s future cash flows.
An entity shall apply this SLFRS to all items within the
3.9. Cash Flow scope of LKAS 39 ‘Financial Instruments: Recognition
Interest received and dividends received are classified as and Measurement’.
investing cash flows, while dividend paid and interest
paid, is classified as financing cash flows for the The effective date of this Accounting Standard
purpose of presentation of Statement of Cash Flows has been deferred as at the date of these financial
which has been prepared using the ‘Indirect Method’. statements.
3.10. Earnings Per Share Sri Lanka Accounting Standard- SLFRS 13 ‘Fair
Basic EPS is calculated by dividing the profit or loss Value measurement’
attributable to ordinary shareholders of the Company
by the weighted average number of shares outstanding This Accounting Standard defines fair value, sets out in
during the period. a single SLFRS a framework for measuring fair value;
and requires disclosures abut fair value measurements.
3.11. Events Occurring after the Reporting Period
Events after the reporting period are those events This SLFRS will become effective from 01st January
favourable and unfavourable, that occur between 2014 and shall be applied prospectively as of the
the end of the reporting period and the date when beginning of the annual period in which it is initially
the financial statements are authorized for issue. The applied. The Disclosure requirements of this SLFRS need
materiality of the events occurring after the reporting not to be applied comparative information provided for
period is considered and appropriate adjustments to or periods before initial application of this SLFRS.
disclosures are made in the Financial Statements, where
necessary. In addition to the above, following standards will also
be effective for annual periods commencing on or after
3.12. New Accounting Standards issued but not yet 01st January 2014.
effective
There are a number of new Accounting Standards, SLFRS 10 - Consolidated Financial Statements
amendments to standards, which have been issued SLFRS 11 - Joint Arrangements
but not yet effective as at the Reporting date have not SLFRS 12 - Disclosure of Interests in Other Entities
been applied in preparing these Financial Statements.
The company will adopt the following new/revised The above three standards will impact the recognition,
Accounting Standards which will be effective from 01st measurement and disclosures aspects currently
April 2015. Accordingly these Accounting Standards contained in LKAS 27-Consolidated and separate
have not been applied in preparing these Financial financial statements, LKAS 28- Investments in
Statements. associates ,LKAS 31-Interest in joint ventures and SIC-
12 and SIC 13 which are on consolidation of special
SLFRS 9 - Financial Instruments purpose entities(SPEs) and jointly controlled entities
SLFRS 13 - Fair Value Measurement respectively.

90
Establishing a single control model that applies to brought about by changes in the factors mentioned.
all entities including Special Purpose Entities and A reduction in the estimated useful lives of PPE would
removal of the option to proportionate consolidation increase the recorded depreciation charge and decrease
jointly controlled entities are the significant changes the PPE balance.
introduced under SLFRS 10 and SLFRS 11 respectively. 4.2 Estimated Useful lives of Intangible Assets
SLFRS 12 , establishes a single standard on disclosures The Company reviews annually the estimated useful
related to interests in other entities. This incorporates lives of intangible assets based on factors such as
new disclosures as well as disclosures currently required business plan and strategies, expected level of usage
under LKAS 27, LKAS 28 and LKAS 31. and future developments. Future results of operations
could be materially affected by changes in these
Based on the preliminary analysis performed, the above estimates brought about by changes in the factors
Standards on adoption are not expected to have any mentioned. A reduction in the estimated useful lives
material impact on the financial statements. of intangible assets would increase the recorded
amortization charge and decrease the intable assets
3.13. Segment Reporting balance.
Segment information is provided for for the different
business segments of the company. Business 4.3 Defined Benefit Obligations
segmentation has been determined based on the The present value of the gratuity obligations depends
nature of goods provided by the company after on a number of factors that are determined on an
considering the risks and rewards of each type of actuarial basis using a number of assumptions. The
product. assumptions used in determining the net cost for
gratuity include the discount rate. Any changes in
The activities of the segments are described in note 28 these assumptions will impact the carrying amount of
to the financial statements. gratuity obligations.
4. Critical Accounting Estimates, The Company determines the appropriate discount

Assumptions and Judgments rate at the end of each year. This is the interest rate
Estimates, assumptions and judgments are continually that should be used to determine the present value of
evaluated and are based on historical experience estimated future cash outflows expected to be required
and other factors, including expectations of future to settle the pension obligations. In determining the
events that are believed to be reasonable under the appropriate discount rate, the Company considers
circumstances. The Company makes estimates and the interest rates of government bonds that are
assumptions concerning the future. The resulting denominated in the currency in which the benefits will
accounting estimates will, by definition, seldom be paid and that have terms to maturity approximating
equal the related actual results. The estimates and the terms of the related pension obligation.
assumptions that have a significant risk of causing
a material adjustment to the carrying amount of 4.4 Allowance for Doubtful Debts
assets and liabilities within the next financial year are The Company assesses at the reporting date whether
discussed below. there is objective evidence that trade receivables have
been impaired. Impairment loss is calculated based on
4.1 Estimated Useful lives of Property, Plant and a review of the current status of existing receivables
Equipment (PPE) and historical collections experience. Such provisions
The Company reviews annually the estimated useful are adjusted periodically to reflect the actual and
lives of PPE based on factors such as business plan anticipated impairment.
and strategies, expected level of usage and future
developments. Future results of operations could be
materially affected by changes in these estimates

91
5. Financial Risk Management
Risk Exposure Risk exposure Mitigating actions
5.1 Credit Risk Risk arising from default of payment. Higher a) Following stringent assessment
credit risk may adversely impact both liquidity procedures to ensure credit.
and profitability.
b) Developing and implementing
Credit Policies.
c) Obtaining bank guarantees, deposits,

post dated cheques from local
debtors and insurance cover for
export debtors whenever there is a
doubt about recovery.
d) Closely monitoring the debtor

balances and laying action plans
accordingly.
5.2 Operational process Risk Internal process failures, frauds, a) Outsource internal audit to a reputed
pilferages and breakdowns of internal controls audit firm to review and report on
the adequacy of the financial and
operational controls to Audit
Committee and Managing Director.
b) Systems and procedures are in

place to ensure compliance with
internal controls, which are monitored
and reviewed for their continued
efficiency and effectiveness.
c) Provide focused and structured

training to staff at all levels to
familiarize them with processes and
procedures.
d) Carrying out mandatory preventive

maintenance programmes.
e) The Company sources its products

and services from approved suppliers.

92
Risk Exposure Risk exposure Mitigating actions
5.3 Financing and Interest Inability to satisfy debt repayments and obtain the a) To have adequate facilities in
rate risk best interest rates. obtaining USD loans and
borrowings in foreign currency
to bring down finance charges.
b) Funding of long-term assets through

equity and Long-term loans.
c) To have adequate short-term

borrowing facilities available at all
times.
d) Low gearing is maintained.
5.4 Foreign Exchange Depreciation of the rupee value and loss on a) Exchange rate movements are taken
rate Risk exchange in conversion in relation to export into consideration before
proceeds, import payments and foreign currency conversion & pricing.
debt transactions.
b) Practising effective hedging
techniques.
c) Continuous evaluation of the impact

of Central Bank regulations.
5.5 Project Management New projects / Capital expenditures involve high a) Conduct a PESTEL analysis
Risks risks and uncertainties in terms of delay and and feasibility study before
cost overruns. Failure of major projects will initiating the projects.
affect profitability, capital structure and reputation.
b) Board approval should be received for
all investments.
c) Post-evaluation of the projects is

carried out for each investment.

93
NOTES Rs. Rs.
06. Revenue
Sale of goods 6.1 952,561,234 973,858,289
952,561,234 973,858,289
6.1 Sale of Goods

Export Turnover 613,250,076 656,041,490
Local Turnover 339,311,158 317,816,799
952,561,234 973,858,289
07. Other Income

Profit on disposal of property, plant & equipment 331,681 1,166,071
Income from cultivation - 5,259
Reversal of over provided expenses 11,290
Creditors’ dues written back 1,877,601 -
Reversal of inventory impairement provision 61,747 577,993
2,282,319 1,749,323
08. Expenses by Nature

Cost of purchase 514,837,534 569,154,015
Employee benefit expenses 8.1 131,108,188 112,128,990
Other overheads 74,508,706 66,488,300
Depreciation 27,768,868 26,526,938
Export expenses 13,068,204 14,132,366
Machinery maintenance 14,514,517 8,495,804
Sub contract wages 11,552,748 7,829,757
Auditors remuneration - Assurance services 242,300 230,000
Auditors remuneration - Non -Assurance services 40,600 35,200
Others 119,437,996 116,525,968
Total Cost of Purchase, Distribution and Administrative Expenses 907,079,661 921,547,338
8.1 Employee Benefit Expenses

Director’s emoluments 8,376,395 8,057,196
Bonus & other allowances 1,437,254 1,252,102
Salaries, wages & overtime 111,288,432 92,508,653
Post employment benefit - gratuity 692,826 1,918,399
EPF & ETF 9,313,281 8,392,640
131,108,188 112,128,990
94
NOTES Rs. Rs.
9. Net Finance Income

9.1 Finance Income
Interest Income 3,086,413 726,762
Foreign Exchange Gain 17,770,291 6,189,871
20,856,704 6,916,633
9.2 Finance Cost
Interest Expenses On Bank Borrowing 2,342,302 4,765,096
Overdraft Interest 1,437,733 5,134,932
3,780,035 9,900,028
Net Finance Income 17,076,669 (2,983,395)
10 Income Tax Expenses

Current Tax Expenses:
Current tax on profit for the year 10.1 4,353,651 3,034,498
(Over) / Under provision in previous years 181,618 8,096
Deferred Tax Expenses:
Origination and reversal of temporary differences 17 3,955,316 (7,481,140)
Income Tax Expenses in Statement of Comprehensive Income 8,490,585 (4,438,546)
10.1 Reconciliation between Current Tax Expenses and the Accounting Profits
Profit before tax 64,840,561 51,076,879
Tax effects of:
– Total disallowable expenses 36,796,434 38,189,332
– Total allowable expenses (49,550,123) (50,361,037)
Taxable income from ordinary activities 52,086,872 38,905,174
Tax loss claimed (18,230,405) (13,616,811)
Taxable income 33,856,467 25,288,363
Agricultural Income 10% - 526

Tax profit on export sales 12% 3,844,619 3,033,972
Interest income 28% 509,032 -
Tax on profit for the year 4,353,651 3,034,498

95
NOTES Rs. Rs.
11. Earnings per Share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of
the company by the weighted average number of ordinary shares outstanding at year end.
Amount Used as the Numerator

Profit for the year 56,349,976 55,515,425
Profit attributable to equity holders of the company 56,349,976 55,515,425
Number of Ordinary Shares Used as the Denominator

Weighted average number of ordinary shares in issue 3,847,974 3,847,974
Weighted average number of ordinary shares for earnings per share 3,847,974 3,847,974
Basic Earnings per Share (Rs.Cts) 14.64 14.43
12. Dividend paid during the year

Amounts Used as Numerator
Dividend paid 7,695,948 7,695,948
Number of Ordinary Shares Used as the Denominator
Weighted Average Number of Ordinary Shares in Issue 3,847,974 3,847,974
Dividend per Share (Rs. Cts.) 2.00 2.00

96
13. Property, Plant and Equipment
As At As At
01.04.2013 Additions Disposals 31.03.2014
COST/VALUATION Rs. Rs. Rs. Rs.

Freehold assets
Freehold land 3,190,105 - - 3,190,105
Buildings 90,594,322 - - 90,594,322
Storage tank 125,031 - - 125,031
Plant and machinery 233,231,837 20,320,526 (228,000) 253,324,363
Machine accessories 117,145,471 3,270,733 (300,000) 120,116,204
Furniture and fittings 1,471,790 - - 1,471,790
Office equipment 13,952,118 338,483 - 14,290,601
Motor vehicles 3,282,668 - - 3,282,668
Sundry assets 11,535,367 396,959 - 11,932,326
Waste water treatment plant - WIP - 1,530,000 - 1,530,000
Total 474,528,708 25,856,701 (528,000) 499,857,410
DEPRECIATION
Freehold assets
Freehold land - - - -
Buildings 39,159,991 4,726,349 - 43,886,340
Storage tank 125,031 - - 125,031
Plant and machinery 161,726,941 13,804,163 (201,401) 175,329,703
Machine accessories 77,412,056 7,151,674 (8,280) 84,555,450
Furniture and fittings 599,285 111,550 - 710,835
Office equipment 9,431,185 1,038,460 - 10,469,645
Motor vehicles 2,857,669 199,558 - 3,057,227
Sundry assets 8,767,430 737,114 - 9,504,544
Waste water treatment plant - WIP - - - -
Total 300,079,588 27,768,868 (209,681) 327,638,775
WRITTEN DOWN VALUE

Freehold assets
Freehold land 3,190,105 - - 3,190,105
Buildings 51,434,331 - - 46,707,982
Storage tank - - - -
Plant and machinery 71,504,896 - - 77,994,660
Machine accessories 39,733,415 - - 35,560,754
Furniture and fittings 872,505 - - 760,955
Office equipment 4,520,933 - - 3,820,956
Motor vehicles 424,999 - - 225,441
Sundry assets 2,767,937 - - 2,427,782
Waste water treatment plant - WIP - - - 1,530,000
Total 174,449,120 - - 172,218,635
97
13 (a) Fully Depreciated Property, Plant and Equipment
A class-wise analysis of the initial cost of fully depreciated property, plant and equipment of the company which are still in use as at
reporting date is as follows,
As at 31.03.2014
Rs.
Furniture & Fittings 410,828
Motor Vehicle 2,432,668
Office Equipment 7,500,096
Plant & Machinery 101,298,352
Sundry Assets 5,248,051
Tools & Accessories 49,173,275
Total 166,063,270
(b) Temporarily idle property, plant and equipment

There were no property, plant and equipment idle from active use as at the reporting date.
(c) Property, plant and equipment retired from active use

There were no property, plant and equipment retired from active use as at the reporting date.
(d) Title restriction of property, plant and equipment

There were no restrictions on the title of property, plant and equipment as at the reporting date.
(e) Land holdings and Investment properties

The value of office and factory situated at Akuressa Road, Bogahagoda, Angulugaha, Galle was valued by independent
incorporated valuer at a value of Rs. 132 mn as at 29th August 2009 and the factory at No: 57B, Industrial Processing Zone,
Nagoda, Kaluthara was purchased in 2009/2010 at the market value of Rs. 18,000,000/.
Location Address No. of Buildings Extent of land Extent of Building
Galle Factory Akuressa Road, 10 Buildings 7 Acres 2 Roods & 94,900 Sq ft

Bogahagoda, Galle. 17 Perches
Kalutara Factory No. 57/B, Fullerton 03 Buildings 120 Perches 5,990 Sq ft

Industrial Zone,
Nagoda, Kalutara.

98
31.03.2014 31.03.2013
Rs. Rs.
14. Intangible Assets

Cost
As at 1 April 12,786,626 12,786,626
Additions - -
As at 31 March 12,786,626 12,786,626
Amortisation
As at 1 April 3,835,984 2,557,322
Charge for the year 6,393,310 1,278,662
As at 31 March 10,229,294 3,835,984
Net book value 2,557,332 8,950,642
The company has changed its estimate regarding the amortization period of intangible asset as 5 years instead of previous estimate
of 10 years during the year 2013/14.
15. Available for Sale Financial Assets

No of Market Market Value Market Value
Quoted Debentures Debentures Price As at 31.03.2014 As at 31.03.2013
Rs. Rs. Rs.
Hayleys Plc 10,000 1,000 10,000,000 -
National Development Bank Plc 50,200 100 5,020,000 -
Hatton National Bank Plc 63,343 100 6,334,300 -
Total 21,354,300
16. Other Financial Assets

Investment in treasury bills 10,000,000 -
Investment in fixed deposits 19,000,000 -
Total 29,000,000 -
17. Deferred Income Tax Assets and Liabilities

17.1 - Deferred tax assets
Balance at the beginning of the year 6,855,791 1,952,274
Recognised in profit & loss (1,880,604) 4,903,517
Balance at the end of the year 4,975,187 6,855,791
17.2 - Deferred tax liabilities

Recognised in profit & loss 2,074,712 (2,577,625)
Net Deferred tax liabilities 5,930,587 1,975,271

99
17.3 - Recognised Deferred Tax Assets and Liabilities
As at 31.03.2014 31.03.2013
Assets Liabilities Assets Liabilities
Rs. Rs. Rs. Rs.
Property, plant & equipment - 10,905,774 - 8,831,062
Defined benefit obligation 1,945,571 - 1,743,313 -
Tax loss 3,029,616 - 5,112,478 -
Total 4,975,187 10,905,774 6,855,791 8,831,062
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
18. Inventories
Raw materials 31,561,702 34,115,020
Work-in-progress 33,428,845 24,350,790
Finished goods 52,028,190 79,070,920
Packing materials 9,539,574 7,510,831
Provision for inventory (1,261,899) (1,261,899)
125,296,412 143,785,662
19 Trade and Other Receivables

Current
Trade receivables - Local 18,913,852 24,379,603
Trade receivables - Foreign 146,678,834 158,609,434
Trade receivables - Related parties 19.1 41,509,219 24,100,175
Less: Provision for impairment of trade receivables (2,075,014) (2,136,761)
Trade receivables - net 205,026,891 204,952,451
Other receivables 2,129,055 797,567
Deposits and prepayments 4,694,006 4,197,185
Advances 5,167,139 3,967,544
VAT Receivable 12,108,759 12,145,133
Other receivables 24,098,959 21,107,430
Total 229,125,850 226,059,880
19.1 - Trade Receivables - Related parties

D. Samson Industries (Pvt) Ltd. 40,066,078 21,067,803
Samson Rubber Industries (Pvt) Ltd. - 18,565
Samson Engineers (Pvt) Ltd. 99,491 38,621
Samson Trading (Pvt) Ltd. 705,152 341,655
Samson Reclaim Rubbers Ltd. 152,957 178,694
Samson Rubber Products (Pvt) Ltd. 34,212 2,195,971
Samson Rajarata Tiles (Pvt) Ltd 107,935 -
DSI Welfare shop - 8,625
Samson Compounds (Pvt) Ltd. 206,468 238,241
D Samson & Sons (Pvt) Ltd. 44,057 12,000
Samson Group Corporate Services (Pvt) Ltd. 92,869 -
41,509,219 24,100,175

100
Movements on the company provision for impairment of trade receivables is as follows:
31.03.2014
Rs.
As at 1 April 2,136,761
Provision / (Reversal) for receivables impairment (61,747)
As at 31 March 2,075,014
The creation and release of provision for impaired receivables have been included in ‘operating expenses’ and ‘other income’
in the statement of comprehensive income (Note 08 and 07 respectively). Amounts charged to the allowance account are
generally written off, when there is no expectation of recovering additional cash.
The other classes within trade and other receivables do not contain impaired assets.
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
19.2 Analysis of Financial Instruments

Financial instruments by category
Loans and receivables
Trade and other receivables excluding prepayments, statutory payments and advances 205,026,891 204,952,451
Cash and cash equivalents 20 60,880,788 19,755,466
265,907,679 224,707,917
Financial liabilities at amortised cost
Trade and other payables (Excluding statutory liabilities) 23 145,410,992 105,640,551
Borrowings 24 32,843,058 60,804,330
178,254,050 166,444,881
19.3 Exposure to Credit Risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
end of the reporting period was as follows:
Trade and other receivables 205,026,891 204,952,451

205,026,891 204,952,451
The maximum exposure to credit risk for trade receivables at the end of the reporting
period by type of counterparty is as follows:
Trade receivables from related parties 41,509,219 24,100,175

Trade receivables - others 163,517,672 180,852,275
205,026,891 204,952,450
Amounts due from related companies were given on normal credit terms.

101
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
20. Cash and Cash Equivalents

Favourable Cash and Cash Equivalent Balances
Bank balances 60,457,996 19,346,511
Cash on hand 422,792 408,955
60,880,788 19,755,466
Unfavourable Cash and Cash Equivalent Balances
Bank Overdrafts 3,180,335 15,518,523
3,180,335 15,518,523
Cash and cash equivalents for the purpose of cash flow statement 57,700,453 4,236,943
The company held cash and cash equivalents with reputed commercial banks.
21. Stated Capital

Issued and fully paid
3,847,974 Number of Ordinary Shares in Issue with no par value 105,752,241 105,752,241
105,752,241 105,752,241
22. Retirement Benefit Obligation

Movement in the Present Value of Defined Benefit Obligation
Balance as at the beginning of the year 14,528,107 9,906,020
Current Service Cost 1,598,092 1,544,630
Interest Cost 1,813,027 990,602
Actuarial (gain) / loss on obligation (1,871,505) 5,138,366
Benefit Paid (937,855) (3,051,511)
Balance as at the end of the year 15,129,866 14,528,107
Actuarial assumptions: 31.03.2014 31.03.2013

Salary Incremental rate 10% 10%
Rate of Discount 11% 11%
Staff turnover rate 4% to 42% 5%
Provision has been made for retirement gratuities in conformity with LKAS 19 - Employee Benefits.
23. Trade and Other Payables

Trade Creditors - Related Companies 23.1 111,330,980 72,071,865
Trade Creditors - Other 18,038,360 10,812,096
Sundry Creditors Including Accrued Expenses 15,055,030 15,952,238
VAT Payable 186,886 1,363,366
NBT Payable 90,142 1,036,657
Advances Received 986,622 6,804,352
145,688,020 108,040,574

102
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
23.1 Trade Creditors - Related Companies

D. Samson Industries (Pvt) Ltd. 1,362,735 142,661
Samson Rubber Industries (Pvt) Ltd. - 40,000
Samson Engineers (Pvt) Ltd. 25,093 207,473
Samson Reclaim Rubbers Ltd. 385,450 243,246
Samson Rubber Products (Pvt) Ltd. 3,201,908 3,729,279
Samson Group Corporate Services (Pvt) Ltd. - 505,669
Samson Compounds (Pvt) Ltd. 106,088,889 66,774,430
D S I Welfare Shop 23,150 39,880
Mount Spring Water (Pvt) Ltd. 4,608 1,382
Samson Information Technologies (Pvt) Ltd. 68,512 32,307
D Samson & Sons (Pvt) Ltd 170,635 40,888
Samson Bikes (Pvt) Ltd - 314,650
111,330,980 72,071,865
24. Borrowings
Current
Bank borrowings - Overdrafts 3,180,335 15,518,523
- Short Term Borrowings 29,662,723 45,285,807
32,843,058 60,804,330
24.1 - Securities for the above facilities are as follows:
Nature of Asset Nature of the Bank/Institution Securities

Loan Facility
Inventory Overdraft Hatton National Bank PLC Finished Good Stocks & Debtors
Confirmed Order Confirmation Term Loan Hatton National Bank PLC Confirmed Order Confirmation
Inventory Overdraft Seylan Bank PLC Finished Good Stocks & Debtors
Inventory Overdraft Bank Of Ceylon- Galle Raw Material Stocks
Inventory Overdraft Bank Of Ceylon- Cop. Raw Material Stocks
Financial assets Overdraft DFCC Vardhana Bank PLC Treasury bills
As at 31.03.2014 31.03.2013
NOTES Rs. Rs.
24.2 - Short Term Borrowings

Obtained during the year 161,650,914 160,977,140
Repayments during the year (177,273,998) (128,304,333)

103
25. Commitments and Contingencies
There were no commitments and contingencies existing as at the reporting date.
26. Events Occurring after the Reporting Date

No circumstances have arisen, since reporting date, which would require adjustments to, or disclosure, in the financial
statements.
27. Related Party Disclosures

Details of significant related party disclosures are as follows:
27.1 Key Management Personnel of the Company

The Key Management personnel (KMP) comprise the members of its Board of Directors. Directors’s remuneration for the
financial year ended March 31, 2014 is given in Note 8.1 to the Financial Staements.
Dr. D.S. Rajapaksa

Mr. D.K. Rajapaksa
Mr. D.R. Rajapaksa
Mr. D.M. Rajapaksa
Mr. C. Cumaranatunge
Mr. G.H.A. Wimalasena
Mr. T.K. Bandaranayake
Mr. B.L.P. Jayawardena
Mr. D.G.P.S. Abeygunawardana
27.2.1 Transactions with Key Management Personnel of the Company
Key Management Personnel Compensation 2014 2013

Rs. Rs.
Short-term employee benefits 8,376,395 8,057,196
8,376,395 8,057,196
27.2.2 Other Transaction with Key Management Personnel

Mr. C Cumaranatunge a director of the company is also Chairman / Managing Director of M/s Sanger GMBH and Gumitex
Productions - UND to which company’s sales amounting to Rs. 470,229,315/- has been made during the year as specified
below.
Other Transaction with Key Management Personnel - For the year ended 31.03.2014
Rs.
To SANGER GMBH 140,809,810
To GUMMITEX GMBH 329,419,505
470,229,315

104
27.3 Directors Interest In Contracts with the Company
None of the Directors of the Company had any direct or indirect interests in any existing or proposed contracts with the
Company other than those stated below:
The directors of the company are also the directors of following companies.
27.3.1 Mr. D.S. RAJAPAKSA who is a Director of the company is also holding directorships in the following companies
within the Group.
Name of Company Relationship
D. Samson Industries (Pvt) Ltd. Director

D Samson & Sons (Pvt) Ltd. Director
Samson Reclaim Rubbers Ltd. Director
Samson Trading Company (Pvt) Ltd. Director
27.3.2 Mr. D.K RAJAPAKSA who is a Director of the company’s is also holding directorships in the following companies
within the Group.

Samson Compounds (Pvt) Ltd. Director
D Samson & Sons (Pvt) Ltd. Director
Samson Rubber Industries (Pvt) Ltd. Director
Samson Rubber Products (Pvt) Ltd. Director
Samson Group Corporate Services (Pvt) Ltd. Director
Samson Information Technologies (Pvt) Ltd. Director
Mount Spring Water (Pvt) Ltd. Director
Samson Manufacturers (Pvt) ltd. Director
27.3.3 Mr. D.R. RAJAPAKSA who is a Director of the company is also holding directorships in the following companies
within the Group.

Samson Engineers (Pvt) Ltd. Director
Samson Group Corporate Services (Pvt) Ltd Director
Mount Spring Water (Pvt) Ltd. Director

105
27.3.4 Mr. D.M. RAJAPAKSA who is a Director of the company is also holding directorships in the following companies
within the Group.

Samson Manufacturers (Pvt) ltd. Director
27.3.5 Mr. B.L.P. JAYAWARDANA who is a Director of the company is also holding directorships in the following companies
within the Group.

Samtessi Brush Manufacturers (Pvt) Ltd Director
27.4 The company has entered into transactions during the year with following companies in which some of the directors
of the company is also directors of the said company.
Name of Company 2014 2013

Sales Purchases Sales Purchases
Rs. Rs. Rs. Rs.
D. Samson Industries (Pvt) Ltd. 198,616,507 827,792 186,391,439 627,679

D Samson & Sons (Pvt) Ltd 418,905 2,166,466 27,917 1,838,602
Samson Rubber Industries (Pvt) Ltd 47,812 40,000 45,624 242,171
Samson Trading Company (Pvt) Ltd. 3,555,015 97,150 5,221,160 -
Samtessi Brush Manufacturers (Pvt) Ltd 2,495 - - -
Samson Compounds (Pvt) Ltd. 8,338,388 478,774,619 2,974,762 555,733,842
Samson Engineers (Pvt) Ltd 610,090 1,036,385 391,992 3,765,537
Samson Reclaim Rubbers Ltd. 1,190,620 4,515,049 1,795,564 4,401,200
Samson Sportswear (Pvt) Ltd - - 10,626,375 9,600.00
Samson Group Corporate Services (Pvt) Ltd. - 3,451,836 - 3,384,551
Samson Manufactures (Pvt) Ltd 102,528 - 13,741.00 -
Samson Rubber Products (Pvt) Ltd 11,020,492 15,284,699 12,270,369 14,812,531
Mount Spring Water (Pvt) Ltd - 14,613 27,157 10,053
Samson Information Technologies (Pvt) Ltd. - 501,990 - 571,308
27.5 Outstanding amounts due from related parties and due to related parties are disclosed in Note 19.1 & 23.1
respectively.

106
28. Segment Operating Results
28.1Business Segment Medical Items Food Grade Items Household Items Others Company
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000
Export Sales 208,861 212,328 284,583 285,912 67,714 99,166 52,092 58,635 613,250 656,041
Local Sales 635 1,343 2,081 5,338 40,561 39,389 296,034 271,747 339,311 317,817
209,496 213,671 286,664 291,250 108,275 138,555 348,126 330,382 952,561 973,858
Profit/(Loss) on Fixed Asset Disposal 82 291 81 291 88 292 81 292 332 1,166
Other Income 472 328 472 214 472 24 535 16 1,951 582
210,050 214,290 287,217 291,755 108,835 138,871 348,742 330,690 954,844 975,606
Segmental Expense (200,558) (201,821) (256,869) (261,225) (105,064) (136,291) (344,589) (322,209) (907,080) (921,546)
Operating Profit/(Loss) 9,492 12,469 30,348 30,530 3,771 2,580 4,153 8,481 47,764 54,060
28.2 Geographical Segment

Europe 162,038 193,324 284,583 285,912 49,022 45,873 44,186 46,193 539,829 546,757
Australia & New Zealand 35,645 - - - 1,380 5,085 2,659 885 39,684 5,970
America - - - - 2,817 413 - 1,161 2,817 1,574
Africa - - - - - - 5,247 10,321 5,247 10,321
Asia 11,178 19,004 - - 14,495 47,795 - 75 25,673 91,419
Total 208,861 212,328 284,583 285,912 67,714 99,166 52,092 58,635 613,250 656,041
107
GlOBal
reporting initiative (Gri)
Samson international Plc voluntarily adopted Global Reporting Initiative (GRI) G4 ‘In accordance’ core Guidelines during the
financial year 2013/14 as a measure of improving the standard of accountability and reporting on accountability, These details are
given below.
Strategy and Analysis Page
G4-1 Statement from the Chairman Chairman’s Review 3 - 6
Organization profile
G4-3 Name of the organization. Samson International Plc
G4-4 Primary brands, products, and/or services. Management Discussion and Analysis- our products 25 - 36
G4-5 Location of organization’s headquarters. Corporate Information 14 - 15
G4-6 Number of countries where the organization Management Discussion and Analysis - 42
operates, and names of countries with either Our Global Presence
major operations or that are specifically
relevant to the sustainability issues
covered in the report.
G4-7 Nature of ownership and legal form. Corporate Information and Investor Information 15, 130
G4-8 Markets served (including geographic Management Discussion and Analysis - 42, 107
breakdown, sectors served, and types of Our Global Presence and Note 28 of the
customers/beneficiaries). Financial Statements
G4-9 Scale of the reporting organization. Corporate Information and Investor Information 15, 127
G4-10 Total work force by employment type, Management Discussion and Analysis - Our People 36
employment contract, and region, broken
down by gender.
G4-11 Percentage of employees covered by collective None

bargaining
G4-12 Organizations supply chain Sustainability-Environment 121
G4-13 Significant changes during the reporting period Investor Information 127
regarding size structure and ownership
Commitment to External Initiatives
G4-14 Precautionary principles Risk Management 59 - 64
G4-15 Charters, principles or other initiatives Corporate Governance and Sustainability 53, 108
G4-16 Memberships of association Management Discussion and Analysis- 50

Membership and Associations
122
GlOBal reporting initiative (Gri) (contd...)
Identified Material Aspects and Boundaries Page
G4-17 Operational structure of the organization. Executive Management 23
G4-18 Process for defining report content. Management Discussion and Analysis, 24, 83,
Accounting Policies, Glossary of Financial Terms. 135
G4-19 Material aspect identified for report content. Management Discussion and Analysis, 24, 83
Accounting Policies.
G4-20 Aspect boundary for identified material Management Discussion and Analysis, 24, 83
aspects within the organization. Accounting Policies.
G4-21 Aspect boundary for identified material Chairman’s Review, Management Discussion and 3, 24,
aspects outside the organization. Analysis, Accounting Policies. 83
G4-22 Restatements of information provided in the None

previous reports.
G4-23 Significant changes from previous reporting Accounting Policies, Chairman’s Review 83, 3
periods in the scope and aspect boundaries.
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the Sustainability Report 109 - 119
organization.
G4-25 Basis for identification and selection of Sustainability Report 109 - 119
stakeholders with whom to engage.
G4-26 Approaches to stakeholder engagement, Sustainability Report 109 - 119

including frequency of engagement by type
and by stakeholder group.
G4-27 Key topics and concerns that have been Sustainability Report 109 - 119
raised through stakeholder engagement.
Report Profile
G4-28 Reporting period Year ended 31 March 2014.
G4-29 Date of most recent previous report Quarterly Financials 131
G4-30 Reporting cycle Annually
G4-31 Contact point for questions regarding the Director / General Manager
report or its contents. Samson International Plc,
Akuressa Road,
Bogahagoda,
Galle.
G4-32 Compliance with GRI G4 Guidelines, GRI Sustainability report 108, 24

Content Index and External Assurance Report. and Management Discussion and Analysis.
G4-33 Policy and current practice with regard to Audit Report and Audit Committee Report 77, 72
seeking external assurance for the report.

123
Governance Page
G4-34 Governance structure of the organization, Report of the Board of Directors 65 - 70

including committees under the highest
governance body responsible for
decision-making on economic, environment
and social impacts
Ethics and integrity
G4-56 The values, principles , standards and norms Our corporate vision ,mission, values and our aim. 2
of behavior
Specific Standard Disclosures
Category: Economic
Aspect Economic Performance
G4-EC1 Direct economic value generated, distributed Management Discussion and Analysis - 50
and retained. Statement of Value Added
G4-EC2 Financial implications and other risks and Management Discussion and Analysis 24, 59
opportunities for the organization’s activities and Risk Management
due to climate change.
G4-EC3 Coverage of the organization’s defined Accounting Policies and Notes to 91

benefit plan obligations. Financial Statements
Aspect Indirect Economic Impacts
G4-EC8 Significant indirect economic impacts, Chairman’s Review , 3, 132

including the extent of impacts. Ten year Economic Summary
Category: Environment
Aspect Emissions
G4-EN15 Direct greenhouse gas(GHG) emissions(Scope1) Management Discussion and Analysis-Energy 47
G4-EN16 Energy indirect greenhouse gas(GHG) Management Discussion and Analysis-Energy 47

emissions(Scope 2)
G4-EN17 Other indirect greenhouse gas(GHG) Management Discussion and Analysis-Energy 47

emissions (Scope 3)
G4-EN18 Greenhouse gas(GHG) emissions intensity Management Discussion and Analysis-Energy 47
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and Management Discussion and Analysis - 47
disposal method Production efficiencies and energy
G4-EN29 Compliance None 108

Monetary value of significant fines and total
number of non-monetary sanctions for
non-compliance with environmental
laws and regulations.
124
Category: Social Page
Labor Practices and Decent Work
Aspect Employment
G4-LA1 Total number and rate of new employee hires Management Discussion and Analysis-Our People 36 - 40
and employee turnover by age group gender
and region.
G4-LA2 Benefits provided to full-time employees that Management Discussion and Analysis- Our People 41
are not provided to temporary or part-time
employees, by significant location of operation.
Aspect Labour/Management Relations
G4-LA4 Minimum notice periods regarding operational Management Discussion and Analysis-Legal 49
changes, including whether these are specified
in collective agreements.
Aspect Occupational Health and Safety
G4-LA5 Percentage of total workforce represented in Management Discussion and Analysis- Our People 36
formal joint management-worker health and
safety committees that help monitor and
advice on occupational health and safety
programmes.
G4-LA6 Type of injury and rates of injury, occupational Management Discussion and Analysis- Our People 36
disease, lost days and absenteeism, and total
number of work-related fatalities, by region
and by gender.
Aspect Training and Education
G4-LA9 Average hours of training per year per employee Management Discussion and Analysis- Our People 36 - 40
by gender, and by employee category.
Human Rights
Aspect Investment
G4-HR1 Total number and percentage of significant None

investment agreements and contracts that
include human rights clauses or that
underwent human rights screening.
Aspect Child Labour
G4-HR5 Operations and suppliers identified as having Management Discussion and Analysis-Legal 49
significant risk for incidents of child labour and
measures taken to contribute to the effective
abolition of child labour.

125
Society Page
Aspect Anti-Corruption Risk Management
G4-SO3 Total number and percentage of operations None

assessed for risks related to corruption and
the significant risks identified.
Aspect Compliance
G4-SO8 Monetary value of significant fines and total None

number of non-monetary sanctions for
non-compliance with laws and regulations.
Product Responsibility
Aspect Product and Service Labelling
G4-PR3 Type of product and service information Management Discussion and Analysis-Our Products 25 - 36
required by the organization’s procedures
for product and service information and
labeling, and percentage of significant product
and service categories subject to such
information requirements.
Aspect Marketing Communications
G4-PR7 Total number of incidents of non-compliance None

with regulations and voluntary codes
concerning marketing communications,
including advertising, promotion, and
sponsorship by type of outcomes.
Aspect Compliance
G4-PR9 Monetary value of significant fines for None

non-compliance with laws and regulations
concerning the provision and use of
products and services.

126
inVestOr
information
“The active participation of shareholders at all our shareholders, the Company has made
the Annual General Meeting is encouraged. every endeavours to ensure equitable treatment
The Board believes the AGM is a means to all our shareholders irrespective of the
of continuing effective dialogue with number of shares they hold”.
shareholders. While valuing the patronage of
Board of Directors at the last AGM
1) General
a) Stated capital - Rs. 105,752,241
b) No. of Shares - 3,847,974
c) Class of Shares - Ordinary Shares

127
inVestOr information (contd...)
2) Stock Exchange Listing
The issued ordinary shares of Samson International Plc are listed on the Colombo Stock Exchange. The audited income statement
for the year ended 31st March 2014 and the audited balance sheet of the Company as at that date have been submitted to the
Colombo Stock Exchange within the stipulated date.
3) Date of Listing
The Company was listed on 24th July 1992.
4) Market Capitalization
The market capitalization of the Company which is the number of ordinary shares issued multiplied by the market value of a share
(at the yearend), was Rs.339.3mn at 31st March 2014 (Rs.316.3 mn as at 31st March 2013).
5) Market Value of the Company’s Ordinary Shares
Market Value per 2014 Date 2013 Date Change

share Rs Rs
Highest Price 105.00 16.01.2014 120.00 28.8.2012 (12.5%)
Lowest Price 74.00 5.04.2013 62.00 13.6.2012 19%
Closing 88.20 31.3.2014 82.20 31.3.2013 7.2%
Rs. Share Price Rs.

160
140
120
100
80
60
40
20
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
The share price of the company has increased

five-fold during last ten years

128
6) Analysis of Shareholders based on number of shares as at 31st March 2014
No of Shares held No of % of Total % of total

Shareholders Shareholders holding holding
1-1,000 1,023 90.9 121,652 3.2

1,001 – 10,000 88 7.8 244,041 6.4
10,001-100,000 9 0.8 304,427 7.9
100,001 – 1,000,000 3 0.3 932,106 24.2
1,000.000 & Over 2 0.2 2,245,748 58.3
Total 1,125 100 3,847,974 100.0
Analysis of Shareholders based on number of shares as at 31st March 2013
No of Shares held No of % of Total % of total

Shareholders Shareholders holding holding
1-1,000 1,021 90.0 130,334 3.4

1,001 – 10,000 94 8.3 258,915 6.7
10,001-100,000 7 1.0 281,195 7.3
100,001 – 1,000,000 3 0.4 932,106 24.2
1,000.000 & Over 2 0.3 2,245,424 58.3
Total 1,127 100 3,847,974 100.0
7) Analysis of Shareholders category-wise as at 31st March 2014
Category No of % of Total % of
Shareholders Shareholders holding total holding
Individual- Local 1,081 96.4 621,922 16.2
Institutional-local 42 3.6 3,225,742 83.8
Individual - foreign 2 0.0 310 0
Institutional- foreign 0 0.0 0 0
Total 1,125 100 3,847,974 100
Analysis of Shareholders category-wise as at 31st March 2013
Category No of % of Total % of
Shareholders Shareholders holding total holding
Individual- Local 1,086 96.4 621,869 16.2
Institutional-local 40 3.5 3,225,805 83.8
Individual - foreign 1 0.1 300 0
Institutional- foreign 0 0 0 0
Total 1,127 100 3,847,974 100

129
8) No of Share Transctions
The No of Share transactions for the year ended 31st March 2014 and 2013 are 49,773 and 54,183 respectively.
9) Public Holdings
As at 31st March 2014, the public held 43.04% (in 2012/2013- 13.91%) of the shares of the Company. This significant difference
arose due to change in the interpretation of the definition of public holding by the Stock Exchange.
10) Twenty Major Shareholders as at 31st March 2014
Shareholder No of Shares % No of Shares %

as at 31/3/2014 as at 31/3/2013
1 DSI Samson Group ( Pvt) Ltd. 1,204,824 31.3 1,204,824 31.3
2 Seylan Bank PLC/ Thirugnanasambander Senthilvel 1,040,924 27.0 1,040,600 27.0
3 D. Samson Industries ( Pvt) Ltd. 548,758 14.2 548,758 14.2
4 D. Samson & Sons ( Pvt) Ltd. 274,348 7.1 274,348 7.1
5 Dr.Thiruganansabander Senthilvel 109,000 2.8 109,000 2.8
6 Samson Rubber Industries (Pvt) Ltd. 96,553 2.5 96,553 2.5
7 Sanger GMBH 78,622 2.0 78,622 2.0
8 Abeysiri Hemapala Munasinghe 30,107 0.8 30,107 0.8
9 Mr. G. K. Piyasena 22,980 0.6 22,980 0.6
10 Samson Manufacturers ( Pvt) Ltd. 22,154 0.6 22,154 0.6
11 Mr. H. Tanigawa 20,460 0.5 20,460 0.5
12 Mr. N. C. Pakianathan 12,538 0.3 9,304 0.3
13 Mrs. D. R. Wimalasena 10,694 0.3 - -
14 Mrs. D. W. Rathna - 10,796 0.3
15 Mr. D. R. Rajapaksa 10,319 0.3 10,319 0.3
16 Waldock M ackenzie Ltd./ Hi-Line Trading ( Pvt) Ltd. 10,000 0.3 10,000 0.3
17 Mr. D. K. Rajapaksa 9,931 0.3 9,931 0.3
18 Mr. T. S. Salim 9,400 0.3 9,900 0.3
18 Mr. D. M. Rajapaksa 9,295 0.2 9,295 0.2
19 Dr. D. S. Rajapaksa 7,156 0.2 7,156 0.2
20 Waldock Mackenzie Ltd./ Hi- Line Towers ( Pvt) Ltd. 7,100 0.2 7,100 0.2
Total 3,535,163 91.8 3,532,207 91.8
Others 312,811 8.2 315,767 8.2
Total Shareholdings of the Company 3,847,974 100.0 3,847,974 100.0

130
FOur-Quarter
Financial summary
INCOME STATEMENT
For the 03 Months ended 30th June For the 03 Months ended 30th September For the 03 Months ended 31st December For the 03 Months ended 31st March
2013 2012 2013 2012 2013 2012 2014 2013
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Un audited Un audited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Continuing operations
Revenue
Export 105,693 142,276 114,249 152,224 186,011 166,399 207,162 195,144
Local 69,072 97,292 89,504 83,010 88,814 66,132 84,961 72,717
Total Revenue 174,765 239,568 203,753 235,234 274,825 232,531 292,123 267,861
Cost of sales (154,032) (206,748) (171,124) (194,765) (229,684) (196,581) (252,146) (234,057)
Gross profit 20,733 32,820 32,629 40,469 45,141 35,950 39,977 33,804
Other Operating income 255 1,339 721 519 848 226 1,075 (186)
Exchange gain / (Loss) 4,818 3,744 6,059 (885) 3,413 2,660 3,952 549
Selling & Distribution Cost (4,330) (8,211) (3,638) (5,179) (7,174) (6,931) (7,147) (6,364)
Administrative expenses (15,521) (13,825) (16,019) (15,500) (16,238) (15,608) (24,287) (18,975)
Operating profit 5,955 15,867 19,752 19,424 25,990 16,297 13,570 8,828
Finance costs (1,596) (2,322) (974) (3,017) (1,115) (2,456) (1,244) (1,810)
Profit before income tax 4,359 13,545 18,778 16,407 24,875 13,841 12,326 7,018
Income tax expense (921) (644) (2,035) (2,598) (3,105) (1,491) (2,193) (528)
Profit after income tax 3,438 12,901 16,743 13,809 21,770 12,350 10,133 6,490
FINANCIAL POSITION
As at 30th June As at 30 th September As at 31 st December As at 31 st March

2013 2012 2013 2012 2013 2012 2014 2013
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Un audited Un audited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Assets
Non-current assets
Property Plant & Equipment 168,440 176,150 164,759 175,539 163,090 175,566 172,215 174,449
Investments in Others 16,335 - 16,335 - 31,354 - 31,354 -
Intangible assets 8,631 9,910 8,312 9,590 7,992 9,271 - 8,951
Deferred Tax Assets 7,631 - 8,405 - 5,290 - 5,290 6,856
201,037 186,060 197,811 185,129 207,726 184,837 208,859 190,256
Current assets
Inventories 138,669 149,125 160,453 134,418 168,342 160,789 125,502 144,174
Trade & other receivables 172,759 216,019 172,727 196,708 212,117 192,170 221,728 224,308
Due from related companies - - - - - - -
Income tax refund due 13,066 15,472 11,382 13,331 9,663 12,475 9,663 13,252
Cash and cash equivalents 44,084 30,703 48,230 35,891 51,203 42,589 79,934 19,755
368,578 411,319 392,792 380,348 441,325 408,023 436,827 401,489
Total Assets 569,615 597,379 590,603 565,477 649,051 592,860 645,686 591,745
Equity and liabilities
Stated capital 105,753 105,753 105,753 105,753 105,752 105,752 105,752 105,752
General reserves 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000
Retained earnings 188,590 155,352 197,637 161,252 219,408 173,604 231,388 185,152
Total equity 404,343 371,105 413,390 377,005 435,160 389,356 447,140 400,904
Liabilities
Non-current liabilites
Deferred Tax Liabilities 10,339 9,277 11,466 9,734 9,737 10,368 9,737 8,831
Retirement benefit obligations 14,635 9,629 15,569 10,055 16,128 8,818 16,953 14,528
24,974 18,906 27,035 19,789 25,865 19,186 26,690 23,359
Current liabilities
Trade and other payables 98,427 114,245 93,468 87,629 115,722 147,645 139,347 106,678
Short term borrowings 21,243 32,911 39,013 40,123 48,034 12,996 29,328 45,285
Bank overdrafts 20,628 60,212 17,697 40,931 24,270 23,677 3,181 15,519
140,298 207,368 150,178 168,683 188,026 184,318 171,856 167,482
Total liabilities 165,272 226,274 177,213 188,472 213,891 203,504 198,546 190,841
Total equity and liabilities 569,615 597,379 590,603 565,477 649,051 592,860 645,686 591,745

131
ten - year
economic summary
Economic Indicators 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GDP Indicators
GDP growth Per cent 5.4 6.2 7.7 6.8 6.0 3.5 8.0 8.2 6.3 7.3
GDP (current prices) Rs. billion 2,091.0 2,453.0 2,939.0 3,578.0 4,411.0 4,835.0 5,604.0 6,543.0 7,579.0 8,674.0
GDP (current prices) USD billion 20.7 24.4 28.3 32.3 40.7 42.1 49.6 59.2 59.4 67.2
GDP per capita (USD) Growth Per cent 8.6 20.5 14.5 13.8 24.6 2.1 16.7 18.3 3.0 12.0
GDP per capita (market prices) Rs (000) 107.4 124.7 147.8 178.8 218.2 236.4 271.3 313.6 372.8 423.5
GDP per capita (market prices) USD 1,030.0 1,241.0 1,421.0 1,617.0 2,014.0 2,057.0 2,400.0 2,836.0 2,922.0 3,280.0
Fiscal policy Indicators
Budget deficit Per cent of GDP -7.5 -7 -7 -6.9 -7 -9.9 -8 -6.9 -6.5 -5.9
Monetory policy Indicators

12 month T-Bill yield (year-end) Per cent 7.7 10.4 13 20 19.1 9.3 7.6 9.3 11.7 8.3
Prime lending rate (year-end) Per cent 10.2 12.2 15.2 18.0 18.5 10.9 9.3 10.8 14.4 10.1
M2b money supply growth Per cent 19.6 19.1 17.8 16.6 8.5 18.6 15.8 19.1 17.6 16.7
Other Economic Indicators

Inflation annual average (CCPI 2006/07=100) Per cent - - - - - 3.5 6.2 6.7 7.6 6.9
Unemployment rate Per cent 8.3 7.2 6.5 6 5.4 5.8 4.9 4.2 4 4.4
All share index (year-end) Points 1507 1922 2722 2541 1503 3386 6636 6074 5643 5913
Population Million 19.5 19.7 19.9 20 20.2 20.5 20.7 20.9 20.3 20.5
External Sector Indicators
Exports USD billion 5.8 6.3 6.7 7.7 8.1 7.1 8.6 10.6 9.8 10.4
Imports USD billion 8.0 8.9 10.3 11.3 14.1 10.2 13.5 20.3 19.2 18.0
Balance of payments Per cent of GDP (1.0) 2.1 0.7 1.6 (3.5) 6.5 1.9 (1.9) 0.3 1.5
Current account balance USD billion (0.6) (0.7) (1.5) (1.4) (1.4) (0.2) (1.1) (4.6) (4.0) (2.6)
Current account % of GDP Per cent (3.1) (2.7) (5.3) (4.2) (9.5) (0.5) (2.2) (7.8) (6.7) (3.9)
ForiegnCurrency Indicators
Exchange rate (annual average) Rs/USD 100.5 104.0 110.6 108.3 114.9 113.1 110.6 127.6 129.1
Rs/Euro 125.1 130.6 151.6 159.3 160.2 150.1 153.9 164.0 171.5
Rs/Yen 0.9 0.9 0.9 1.1 1.2 1.3 1.4 1.6 1.3
Rs/INR 2.3 2.3 2.7 2.5 2.4 2.5 2.4 2.4 2.2
Exchange rate change_ USD (annual average) Per cent 4.8 -0.7 3.4 6.4 -2.1 6.1 -1.6 -2.2 15.4 1.2
Rubber Sector Information
Production kg mn 94.7 104.4 109.2 117.6 129.2 136.9 152.9 158.2 152.0 130.4
Total extent hectares ‘000 115.0 116.0 120.0 120.0 122.0 124.0 126.0 129.0 131.0 132.0
Yield kg/hectare 1,064.0 1,144.0 1,128.0 1,261.0 1,382.0 1,437.0 1,561.0 1,566.0 1,459.0 1,219.0
Average price
Colombo Auction Rs/kg 127.2 141.0 202.2 234.2 269.5 211.7 403.0 508.8 416.6 376.9
Export (f.o.b) Rs/kg 127.3 148.0 204.7 234.5 278.4 202.3 377.5 535.4 420.7 389.8

132
ten - year
Financial summary
Year Ended 31st March 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 2006/07 2005/06 2004/05
Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000
Income statement :
Turnover 952,561 973,858 961,489 716,102 588,207 620,518 698,876 638,458 462,687 455,814
Profit Before Taxation 64,841 51,077 19,123 (55,980) (7,608) 14,533 70,012 63,424 25,605 45,692
Taxation (8,491) 4,438 696 (229) (663) (5,757) (9,776) (13,297) (6,235) (7,779)
Profit After Taxation 56,349 55,515 19,820 (56,209) (8,271) 8,775 60,295 50,127 19,370 37,913
Balance Sheet :
Capital And Reserves
Stated capital 105,752 105,752 105,752 105,752 105,752 105,752 105,752 38,480 38,480 32,983
Capital Reserves 110,000 110,000 110,000 10,000 10,000 10,000 10,000 67,272 67,272 47,483
Revenue Reserves 233,806 185,152 137,332 223,893 280,102 288,373 279,597 229,302 186,871 167,502
Shareholders funds 449,558 400,904 353,084 339,645 395,854 404,125 395,349 335,054 292,623 247,968
Non Current Liabilities
Interest Bearing Borrowings - - - - 868 5,120 16,877 14,500 20,500
Deferred Tax 10,906 8,831 11,408 11,388 11,703 11,202 7,808 10,335 9,594 8,604
Retirement Benefit Obligation 15,130 14,528 9,906 7,775 6,306 5,234 8,150 9,238 5,567 4,680
Total Equity & Non Current Liabilities 475,594 424,263 374,398 358,808 414,731 425,681 428,184 369,127 328,284 261,252
Assets Employed
Current Assets 424,020 402,853 388,248 388,205 476,617 481,125 421,581 343,385 486,907 307,190
Current Liabilities (178,531) (168,845) (208,197) (222,481) (232,670) (231,810) (176,186) (116,794) (283,562) (141,788)
Working Capital 245,488 234,008 180,051 165,724 243,947 249,315 245,395 226,591 203,345 165,402
Property, Plant & Equipment 179,751 190,255 194,347 193,084 170,784 176,366 182,789 142,436 124,839 95,749
Investment 50,354 - - - - - - 100 100 100
Long-Term Loans - - - - - - - - - -
Share Issue Expenses - - - - - - - - - -
Total Assets Less Current Liabilities 475,594 424,263 374,398 358,808 414,731 404,557 395,350 335,054 292,623 247,968
Financial Highlights :
Operating Results
Net Profit (%) 6 6 2.10 (7.85) (1.41) 1.41 8.63 7.85 4.19 8.32
Annual Sales Growth (%) (2) 1.29 34.00 21.74 (5.21) (11.21) 9.46 37.99 1.51 20.35
ROCE (%) 12.53 13.85 5.61 (16.55) (2.09) 2.17 15.25 14.96 6.62 15.29
Financial Position
Quick Assets Ratio (Times) 1.67 1.53 1.26 1.11 1.69 1.77 1.84 1.41 1.04 1.32
Fixed Asset Turnover Ratio (Times) 5.45 5.31 4.95 3.71 3.44 3.52 3.82 4.48 3.70 4.76
Shareholder Information
Earnings Per Share (Rs.) 14.64 14.43 5.15 (14.61) (2.15) 2.28 15.67 13.03 5.03 11.49
Dividends (Rs. ‘000) 7,696 7,696 - - - - - 7,696 - 6,597
Dividends Rate (%) 20 20 - - - - - 20 - 20
Market Price Per Share (Rs.) 88.20 82.20 90.00 100.00 86.75 50.25 62.00 44.75 47.25 63.00
Price Earnings Ratio (Times) 6.02 5.70 17.47 (6.85) (40.36) 22.43 3.95 3.43 9.39 5.48
Net Assets Per Share ( Rs.) 116.83 104.18 91.75 88.27 102.87 105.02 102.74 87.07 76.05 75.18
133
FOreiGn
currency Financial statements
INCOME STATEMENT In USD' In Euro'
(Major Import Currency) (Major Export Currency)
FOR THE YEAR ENDED 31ST MARCH 2014 2013 2014 2013
Revenue 7,234,897 7,420,048 5,374,617 5,334,456
Cost of sales (6,135,038) (6,278,310) (4,557,561) (4,513,632)
Gross profit 1,099,858 1,141,738 817,056 820,824
Other income 17,335 13,328 12,877 9,582

Distribution cost (182,432) (188,966) (135,524) (135,852)
Administrative expenses (571,985) (554,203) (424,913) (398,430)
Operating Profit 362,776 411,898 269,497 296,123
Finance Income 158,411 52,699 117,679 37,887

Finance cost (28,710) (75,431) (21,328) (54,229)
Net Finance Income 129,701 (22,731) 96,351 (16,342)
Profit before income taxation 492,477 389,166 365,849 279,781

Income tax expense (64,488) 33,818 (47,906) 24,313
Profit for the year 427,990 422,985 317,942 304,094
STATEMENT OF FINANCIAL POSITION In USD' In Euro'

(Major Import Currency) (Major Export Currency)
AS AT 31st March 2014 2013 2014 2013
ASSETS
Property, plant and equipment 1,303,009 1,358,237 1,015,244 1,042,782

Intangible Assets 19,349 69,688 15,076 53,503
Available for sale financial assets 161,567 - 125,885 -
Other Financial assets 219,414 - 170,957 -
Deferred tax assets 37,642 53,378 29,329 40,981
Non Current Assets 1,740,981 1,481,304 1,356,491 1,137,266
- -
Inventories 947,994 1,119,496 738,633 859,489
Trade and other receivables 1,733,569 1,760,072 1,350,716 1,351,288
Tax Recoverable 65,951 103,178 51,386 79,215
Cash and cash equivalents 460,625 153,813 358,897 118,090
Current Assets 3,208,139 3,136,559 2,499,633 2,408,081
- -
Total Assets 4,949,120 4,617,862 3,856,124 3,545,347
-
EQUITY AND LIABILITIES -
Equity 3,401,366 3,121,388 2,650,186 2,396,434
Non- Current Liabilities 196,986 181,871 153,482 139,631

Current liabilities - -
Trade & other payables 1,102,278 841,189 858,843 645,820
Short Term Borrowings 248,491 473,414 193,613 363,462
1,350,769 1,314,603 1,052,456 1,009,282
Total Liabilities 1,547,755 1,496,475 1,205,938 1,148,913
Total Equity And Liabilities 4,949,120 4,617,862 3,856,124 3,545,347
01. This information does not constitute a full set of financial statements in compliance with SLFRS/LKAS.
02. Exchange rates prevailing at each year end have been used to convert the statement of financial position and average
exchange rate prevailed during the year has been used to convert the income statement.
03. Above has been presented for the information purpose only.

134
GlOssary
of Financial terms
1. Segment : Constituent business units grouped in terms of the nature and similarity of operations.
2. Annual Sales Growth : Percentage change over previous year’s gross turnover.
3. Current Ratio : Current assets divided by current liabilities.
4. Dividend Cover : Profit available for appropriation divided by gross dividend.
5. Dividend per Share : Total Gross Dividend divided by no. of shares at the end of the year.
6. Gross Dividend : Portion of Profits, inclusive of tax withheld, distributed to shareholders.
7. Dividend Rate : Gross Dividends declared per share.
8. Earnings per Share : Profit attributable to shareholders divided by the no. of shares issued.
9. Interest Cover : Profit from ordinary activities before tax and finance cost divided by finance cost.
10. Net Assets per Share : Net Assets divided by the no. of shares.
11. Price Earnings Ratio : Market Price per share divided by earnings per share.
12. Deferred Taxation : Sum set aside for tax in the financial statement that will become payable in a financial year
other than the current financial year.
13. Value Additions : The quantum of wealth generated by the activities of the Company.
14. Revenue Reserves : Reserve considered as being available for distributions and investments.
15. Capital Reserves : Reserves identified for specific purposes and considered not available for distribution.
16. Return on Capital Employed : Profit after interest, tax divided by capital employed or shareholders funds at the year end.
17. Shareholders Fund : Total of stated capital and revenue reserves.
18. Capital employed : Shareholders’ funds plus long - term bearing loans and borrowings.
19. Average Capital Employed : Mean of two consecutive years’ capital employed.
20. Corporate Governance : A system by which Companies are directed and controlled by the management in the
best interest of the stakeholders ensuring greater transparency through better and timely
financial reporting.
21. Market Capitalization : Number of ordinary shares in issue multiplied by the Market Value per share at the balance
sheet date.
22. Related Parties : Parties who could control or significantly influence the financial and operating policies of
the business.
23. Intangible Assets : An intangible asset is an identifiable non-monetary asset without physical substance.
24. Impairment : This occurs when the recoverable amount of an asset is less than its carrying amount.
25. Fair value : This is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties at arm’s length transaction.

135
nOtice
of Meeting
NOTICE IS HEREBY GIVEN that the Twenty Second Annual General Meeting of Samson International PLC will be held on Friday the
19th day of September 2014 at the Sri Lanka College of Obstetricians and Gynaecologists, Samson Rajapaksa Auditorium at No.
112, Model Farm Road, Colombo 08 at 2.00 p.m. for the following purposes:
1. To receive and consider the Annual Report of the Board of Directors on the affairs of Company and the Financial
Statements the year ended 31st March 2014 and the Report of the Auditors thereon.
2. To re-elect Mr. D R Rajapakse who retires by rotation in terms of Article 88(i) of the Articles of Association, as a
Director of the Company.
3. To re-elect Mr. T K Bandaranayake who is 71 years of age, as a Director of the Company and to adopt the following
resolution:-
“IT IS HEREBY RESOLVED THAT Mr. T K Bandaranayake who is 71 years of age be and is hereby re-elected as a
Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act,No.7
of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr. T K
Bandaranayake”.
4. To re-elect Mr. G H A Wimalasena who is 73 years of age, as a Director of the Company and to adopt the following
resolution:-
“IT IS HEREBY RESOLVED THAT Mr.G H A Wimalasena who is 73 years of age be and is hereby re-elected as a Director
of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act, No.7 of 2007 that
the age limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr.G H A Wimalasena.”
5. To re-appoint Messrs HLB Edirisinghe & Co. Chartered Accountants as Auditors of the Company for the ensuing year
and to authorize the Directors to determine their remuneration.
6. To authorize the Directors to determine donations for the year ending 31st March 2015 and up to the date of the
next Annual General Meeting.
By Order of the Board

SAMSON INTERNATIONAL PLC
P W Corporate Secretarial (Pvt) Ltd

Secretaries
August 1st, 2014.

Colombo
Notes:- 1. A shareholder is entitled to appoint a Proxy to attend and vote at the meeting on his/her behalf.
2. A Proxy need not be a shareholder of the Company.
3. A Form of Proxy accompanies this Notice.
4. The completed Form of Proxy should be deposited at the Registered Office of the Company, No. 110, Kumaran Ratnam
Road, Colombo 02, not less than 48 hours before the time for holding the Meeting.

136
nOtes

138
FOrM
of proxy
*I/We ……………………………………………………………………… of ………………………………………………………………………… being* a
shareholder/ shareholders of SAMSON INTERNATIONAL PLC, do hereby appoint ………………………………………………………………………… of
……………………………………………………or failing *him/her*
Dr. D S Rajapaksa of Colombo or failing him*
Mr. D K Rajapaksa of Colombo or failing him*
Mr. D M Rajapaksa of Colombo or failing him*
Mr. D R Rajapaksa of Colombo or failing him*
Mr. C Cumaratunge of Colombo or failing him*
Mr. B L P Jayawardena of Colombo or failing him*
Mr T K Bandaranayake of Colombo or failing him*
Mr G H A Wimalasena of Colombo or failing him*
Mr. D G P S Abeygunawardana of Colombo
as *my/our Proxy to represent me/us*, to speak and vote for *me/us on *my/our behalf at the Twenty Second ANNUAL GENERAL MEETING OF THE
COMPANY to be held on 19 September 2014 at 2.00 p.m. and at any adjournment thereof, and at every poll which may be taken in consequence
thereof.
FOR AGAINST
1. To receive and consider the Annual Report of the Board of Directors on the affairs of Company and the
Financial Statements for the year ended ended 31st March 2014 and the Report of the Auditors thereon.
2. To re-elect Mr. D R Rajapakse who retires by rotation in terms of Article 88(i) of the Articles of Association,
as a Director of the Company.
3. To re-elect Mr. T K Bandaranayake who is 71 years of age, as a Director of the Company and to adopt the
following resolution:-
“It is hereby resolved that Mr T K Bandaranayake who is 71 years of age be and is hereby re-elected as a
Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act
No.07 of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not
apply to Mr T K Bandaranayake.”
4. To re-elect Mr. G H A Wimalasena who is 73 years of age, as a Director of the Company and to adopt the
following resolution:-
“IT IS HEREBY RESOLVED THAT Mr.G H A Wimalasena who is 73 years of age be and is hereby re-elected
as a Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies
Act, No.7 of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not
apply to Mr.G H A Wimalasena.”
5. To re-appoint Messrs H L B Edirisinghe & Co. Chartered Accountants as Auditors of the Company for the
ensuing year and to authorize the Directors to determine their remuneration.
6. To authorize the Directors to determine donations for the year ending 31st March 2015 and upto the date
of the next Annual General Meeting.
Signed this…………… day of ……………………….. Two Thousand and Fourteen.
*Signature/s
Note: 1) *Please delete the inappropriate words.

2) Instructions as to completion are noted on the reverse hereof.

139
INSTRUCTIONS AS TO COMPLETION
1. Kindly perfect the Form of Proxy after filling in legibly your full name and address and sign in the space provided.
Please fill in the date of signature.
2. A shareholder entitled to attend and vote at the Meeting is entitled to appoint a Proxy who need not be a shareholder,
to attend and vote instead of him. Please indicate with an “X” in the boxes provided how your Proxy is to vote on each
resolution. If no indication is given, the Proxy in his discretion will vote as he thinks fit.
3. In the case of a Corporate shareholder, the Form of Proxy must be completed under its Common Seal, which should be
affixed in the manner prescribed by the Articles of Association.
4. If the Form of proxy is signed by an Attorney, the relevant Power of Attorney should also accompany the completed
Form of Proxy, in the manner prescribed by the Articles of Association.
5. The completed Form of Proxy should be deposited at the Registered Office of the Company, No. 110, Kumaran Ratnam
Road, Colombo 02, not less than Forty Eight (48) hours before the appointed time for the Meeting.

140
DSI ieñika iuqy jHdmdrhSh f;aud .S;h
hq. hq. jkaokSh fú

isßiem kkaokSh fú
ishrg foa isßiem foa
isysler jkaokSh jq
ieñika mS;D kdufhka
huq ch fú $$
;drm;S ù È,S È,S ú;a l¿jr wdldfia

ojiam;S ù ke.S ke.S huq fyg bÈjk f,dafla
jdish muKla fidhd isà

cd;sh msßfyhs .rd jeà
foafig jev we;s foag reÑ
cd;sl fy<lu mduq wms
foai úfoafiys kdfñ /|s

fPao fkdjk rkaodfï wms $$
;rÕ je§ ú;a Wkqka mrojk ksmehqñ rK uËf,a

mKg jvd ,eÈ ñksialug wm fkdue; ks.d
fokafka
W;aidyh Wla .ila fj;S

tys wm kqÿgqj rila ke;S
°il t<sfhka yuqj ks;S
f,daflg mykla fjuqj wms
iduQyslj ne|s mjqre bfñ

ãtiawhs mqrjeisfhda wms $$
SAMSON INTERNATIONAL PLC.
Corporate Office:
No. 110, Kumaran Rathnam Road, Colombo 02, Sri Lanka.
Tel : +94 11 4728800 Fax : +94 11 2440890
E-mail : info@dsisamson.com Web : www.samsonint.com

142

Samson International PLC: Annual Report 2013/14

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Samson International PLC: Annual Report 2013/14

Caricato da

Copyright:

Formati disponibili

SamSon international PlC annual report 2013/14

• 2009- Purchased all assets of Aksel Rubber Mat Company, Kalutara