Paragon Ceylon PLC Annual Report

Paragon Ceylon PLC
Annual Report
2023
Notice of Meeting
NOTICE IS HEREBY GIVEN that an Extraordinary General Meeting of Paragon Ceylon PLC will be held
at NCC, Committee Room, No.29, Maitland Place, Colombo 07 on Friday, 1st March 2024 at 10.30 a.m.
and the business to be brought before the Meeting will be:
1. To receive and consider the Annual Report of the Board of Directors on the affairs of the Company
and the Financial Statements for the year ended 31st March 2023 and the Report of the Auditors
thereon.
2. To re-appoint Messrs. Pope & Co., Chartered Accountants as the Auditors of the Company and to
authorize the Directors to determine their remuneration.
BY ORDER OF THE BOARD

PARAGON CEYLON PLC
P W CORPORATE SECRETARIAL (PVT) LTD
DIRECTOR/SECRETARIES
20th January 2024
Colombo.
Note:
A shareholder is entitled to attend and vote at the meeting is entitled to appoint a
Proxy to attend and vote instead of him/her. A Proxy need not be a shareholder of the
Company. A Form of Proxy is enclosed for this purpose. The completed form of Proxy
should be deposited at the Registered Office of the Company, not less than forty-eight
(48) hours before the time fixed for the commencement of the Meeting.
ANNUAL REPORT- 2023 1

Corporate Information
Directors
L. I. Ratnasabapathy
(Chairman/Managing Director)
J. B. M. Ponrajah
P. S. R. Casie Chitty
M. M. Marzook
A. M. De Alwis
Mr. M. R. Y. Riffai (Appointed w.e.f. 01st December 2023)
Ms. D. T. De Alwis (Appointed w.e.f. 01st December 2023)
Secretaries
P W Corporate Secretarial (Pvt) Ltd
Head of Finance
M. S. A. Kariapper
Auditors
Pope & Company
Chartered Accountants
Tax consultants
Nanayakkara & Co.
Bankers
Commercial Bank of Ceylon Ltd.
Lawyers
Nithi Murugesu
Attorney-at-Law
2 ANNUAL REPORT- 2023

Directors’ Profile
L. I. Ratnasabapathy – Executive Chairman and Managing Director
Mr. L. I. Ratnasabapathy is a CIMA finalist with broad experience and exposure to finance, information
technology, systems design and implementation, project management, and commercial offset
printing. He serves as the Executive Chairman and Managing Director for Ceylon Printers PLC, Office
Equipment PLC, Paragon Ceylon PLC, Kalamazoo Industries (Pvt) Ltd and International Computers
(Ceylon) Ltd.
J. B. M. Ponrajah – Executive Director

Mr. J. B. M. Ponrajah is responsible for the overall operations of Paragon Ceylon PLC. He is responsible
for strategy implementation and achievement of the Company goals. Mr. J. B. M. Ponrajah has been
working with the Company since 1972 and counts 50 years of experience in senior management, sales
and marketing.
P. S. R. Casie Chitty – Independent Non-Executive Director

Mr. R. Casie Chitty joined the board as an independent non executive director in 2009. He is an
independent non executive director of Ceylon Printers PLC, Paragon Ceylon PLC and Office Equipment
PLC. Mr. Casie Chitty who holds a Masters in Economics from the University of Colombo is also a
Fellow of the Association of Chartered Certified Accountants (ACCA), UK, an Associate Member of
the Chartered Institute of Management Accounts (CIMA), UK, and a Chartered Financial Analyst, USA.
M. M. Marzook – Independent Non-Executive Director

Mr. M. M. Marzook joined the board as an independent non executive director in 2013. He is a Fellow
Member of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), an Associate Member
of the Chartered Institute of Management Accountants (CIMA) and holds a Master of Business
Administration from the University of Sri Jayawardenapura. He is currently the Head of Special
Projects – Finance and Management Information Systems, at Hayleys Advantis Limited. He counts for
over 33 years’ experience in Finance, Consulting and Financial Advisory.
A. M. De Alwis – Executive Director

Ms. A. M. De Alwis Obtained a Bachelor of Arts in Economics in 1994 from Haverford College in
Pennsylvania and is a passed finalist of CIMA.
She started her career as a management trainee at the Colombo Stock Exchange for a period of a year
from September 1994 to 1995. Thereafter, she commenced Accounting studies and completed the
exams of the Chartered Institute of Management Accountants in 1998.
While studying accountancy, she obtained work experience at BIP Advantage Sri Lanka, an advertising
agency, from September 1994 to December 1995 in the Accounts department. She then served as the
Accountant at DLPL (Yellow Pages) Sri Lanka from 1999 to 2000 and thereafter for a period of a year
at the Ceylon Printers Group of Companies, before rejoining the group in 2020.

Directors’ Profile Contd...
M. R. Y. Riffai – Independent Non-Executive Director

Mr. M. R. Y. Riffai has decades of experience in the fields of journalism, media, communication
and telecommunications, he serves as one of the founding members and Director at the Advocata
Institute.
At present, his functions as a founder director at the independent policy think tank, the Advocata
Institute in charge of media, communication and brand strategy to engage with policy makers and the
public on economic policy that is free and fair to all Sri Lankans. Previously, he was employed at Sri
Lanka’s largest telecommunications operator Dialog Axiata, as Manager – Brand and Media and prior
to that he served as an editor and producer in Sri Lanka’s television and online media.
In 2015, he emerged as winner of the MIT-GSL, representing a team from the University of Colombo,
conducted by the Massachusetts Institute of Technology.
He has a BBA (Cum Laude) in International Business from the University of Northwood USA and a
MA in Financial Economics from the University of Colombo. He is also a fellow of ABE (Association of
Business Executives) UK. At present he is reading for his Mphil/Dphil at the University of Colombo.
D. T. De Alwis – Independent Non-Executive Director

Ms. D. T. De Alwis is a Past Finalist of Chartered Institute of Management Accountants London and a
holder of Bachelors of Business Administration BBA, University of Colombo.
She has over 15 years of experience in the Finance & Leasing Industry.
Currently working as the CEO of Lakderana Investments Ltd.

Chairman’s Review
On behalf of the Board of Directors, I welcome you to the Extraordinary General Meeting of Paragon
Ceylon PLC and it gives me great pleasure to present to you the Annual Report of the Company for
the year ended 31st March 2023.
The turnover of the Company in the period under review increased from Rs 4.540 million in the
preceding year to Rs. 7.404 million.
However, the company recorded an operating profit of Rs 0.480 million as against a profit on
operations of Rs 1.070 million in the previous year. The decrease in the operating profit was attributed
to an increase in administration and selling and distribution overheads. The company recorded a net
profit after taxation of Rs 0.497 million for the year under review.
The Management will be looking into the operations of the company and taking necessary measures
to increase Turnover and the profitability during the current Financial Year.
In conclusion, I wish to take this opportunity to express my thanks to all our customers, bankers,
suppliers and principals for their patronage and support.
My thanks also to my colleagues on the Board, the Management and staff for their commitment and
last but not least, our shareholders for their support and confidence.
L. I. Ratnasabapathy
Chairman
19th January, 2024

Annual Report of the Board of Directors on the Affairs of
the Company
The Directors of Paragon Ceylon PLC have pleasure in presenting their Annual Report together with
the Audited Financial Statements of the Company for the year ended 31st March 2023.
This Annual Report of the Board on the affairs of the Company contains the information required in
terms of the Companies Act No. 07 of 2007, the Listing Rules of the Colombo Stock Exchange and is
guided by recommended best practices.
General
Paragon Ceylon PLC is a public limited liability company which was incorporated under the Companies
Ordinance No.51 of 1938 as a public company on 20th day of June 1958. Pursuant to the requirements
of the new Companies Act No. 7 of 2007, the Company was re-registered on 6th June 2008 and bears
registration number PQ186.
Principal activities of the Company and review of performance during the year
The main activity of Paragon Ceylon PLC, which remained unchanged during the year, is printing and
sale of Paragon security register stationary, blank and preprinted computer continuous stationary.
The Chairman’s Review describes the Company’s affairs and mentions important events, which took
place during the year.
This Report together with the Financial Statements, reflect the state of affairs of the Company.
Financial Statements
The Financial Statements of the Company duly signed by two Directors on behalf of the Board and the
Auditors are given on pages 18 to 22.
Summarized Financial Results
COMPANY
Year ended 31st March 2023 2022
Rs. Rs.
Revenue 7,404,970 4,540,405

Profit /(Loss) for the year 497,610 794,954
Auditors’ Report
The Report of the Auditors on the Financial Statements of the Company is given on pages 18 to 20.
Accounting Policies
The Accounting Policies adopted by the Company in the preparation of the Financial Statements are
given on pages 27 to 33 which are consistent with those of the previous period.
Directors
The names of the Directors who held office as at the end of the accounting period are given below and
their brief profiles appear on page 03 - 04.
Executive Directors
Mr. L I Ratnasabapathy - Chairman/Managing Director
Mr. J B M Ponrajah
Ms. A M De Alwis
Independent Non-Executive Directors
Mr. P.S.R Casie Chitty
Mr. M.M Marzook
Mr. M.R.Y. Riffai (Appointed w.e.f. 1st December 2023)
Ms. D.T. De Alwis (Appointed w.e.f. 1st December 2023)

Annual Report of the Board of Directors on the Affairs of the Company Contd...
Interests Register
The Company maintains an Interests Register in terms of the Companies Act, No. 7 of 2007, which
is deemed to form part and parcel of this Annual Report and available for inspection upon request.
All related party transactions which encompasses the transactions of Directors who were directly
or indirectly interested in a contract or a related party transaction with the Company during the
accounting period are recorded in the Interests Register in due compliance with the applicable rules
and regulations of the relevant Regulatory Authorities.
The relevant interests of Directors in the shares of the Company as at 31st March 2023 as recorded in
the Interests Register are given in this Report under Directors’ shareholding.
Directors’ Remuneration
The Directors’ remuneration is disclosed in Note 09 to the Financial Statements on page 37.
Directors’ Interests in Contracts
The Directors’ interest in contracts are included with the related party disclosures in Page 50 to the
Financial Statements.
The Company carried out transactions in the ordinary course of its business at commercial rates with
related entities.
Directors’ Responsibility for Financial Reporting
The Directors are responsible for the preparation of Financial Statements of the Company to reflect a
true and fair view of the state of its affairs. The Directors are of the view that these financial statements
have been prepared in conformity with requirements of the Sri Lanka Accounting Standards, the
Companies Act No.7 of 2007 and the Listing Rules of the Colombo Stock Exchange.
Auditors
Messrs, Pope & Co, Chartered Accountants served as the Auditors during the year under review.
Based on the written representations made by the Auditors, they do not have any interest in the
Company other than as Auditors.
The Audit fee payable to the Auditors for the year under review is Rs. 234,222 (2022 - Rs. 197,312).
The Auditors have expressed their willingness to continue in office. The Audit Committee at a meeting
held on 01st August 2022 recommended that they be re-appointed as Auditors. A resolution to re-
appoint the Auditors and to authorise the Directors to determine their remuneration will be proposed
at the Extraordinary General Meeting.
Independence of Auditors
Based on the declaration provided by Messrs Pope & Co., Chartered Accountants and to the extent
that the Directors are aware, the Auditors do not have any relationship with (other than that of
the Auditor), or interest in, the Company, which in the opinion of the Board, may reasonably be
considered to have a bearing on their independence within the meaning of the Code of Professional
Conduct and Ethics issued by The Institute of Chartered Accountants of Sri Lanka as at the reporting
date.

Stated Capital
The Stated Capital of the Company is Rs. 1,000,280/-
The number of shares issued by the Company stood at 1,000,280 fully paid ordinary shares as at 31st
March 2023.
Directors’ Shareholding
The relevant interests of Directors in the shares of the Company as at 31st March 2023 and 31st March
2022 are as follows.
Shareholding as at Shareholding as at
31/03/2023 31/03/2022
Mr. L.I. Ratnasabapathy Nil Nil
Ms. A.M. de Alwis 29,250 29,250
Mr. J.B.M. Ponrajah 10 10
Mr. P.S.R. Casie Chitty Nil Nil
Mr. M.M. Marzook Nil Nil
29,260 29,260
Major Shareholders, Distribution Schedule and other information
Information on the twenty largest shareholders of the Company distribution schedule of the number
of shareholders, percentage of shares held by the public, market values per share as per the Listing
Rules of the Colombo Stock Exchange are given on page 10 to 11 under Investor Information.
Reserves
The movement of reserves during the year are given under the Statement of Changes in Equity on
page 23 (Statement of Changes in Equity).
Land holdings
The Company does not own any free hold land.
Investment Property
Details and movements of Investment are given under Note 12 to the Financial Statements on page 39.
Capital Expenditure
There was no capital expenditure during the year under review.
Donations
The Company has made no donations during the year under review.
Dividends
No dividends were declared during the year.
Corporate Governance
Corporate Governance practices and principles with respect to the Management and Operations of
the Company are set out on pages 13 to 14.
An Audit Committee, Remuneration Committee and a Related Party Transaction Review Committee
function as Board sub committees, with Directors who possess the requisite qualifications and
experience. The composition of the said committees is as follows.

Audit Committee Remuneration Committee

Mr. M M Marzook - Chairman Mr. P S R Casie Chitty - Chairman
Mr. P S R Casie Chitty Mr. M M Marzook
Related Party Transaction Review Committee
Mr. P S R Casie Chitty - Chairman
Mr. M M Marzook
The Report on Corporate Governance is given on pages 13 to 14 of the Annual Report.

The Directors declare that the Company is in compliance with Rule 9 of the Listing Rules of the
Colombo Stock Exchange pertaining to Related Party Transactions during the Financial Year ended
31st March 2023.
Recurrent and non-recurrent related party transactions
There were no non--recurrent related party transactions which required additional disclosures in the
Annual Report for 2022/2023 as required by rule 9.3.2(a) and 9.3.2(b) of the CSE Listing rules.
The recurrent related party transaction are listed in the table below :
Name of the Relationship Nature of the Aggregate value Aggregate Terms and
related party transaction of Related Party value of Conditions
Transactions Related Party of the
entered into Transactions Related Party
during the as a % of Net Transactions
financial year Revenue/
Income
Ceylon Printers PLC Other related Rent income 806,910 11% Refer Note
party 28.2
Ceylon Printers PLC Other related Expense 2,579,611 35% Refer Note
party reimbursement 28.2
Office Equipment Other related Rent income 1,357,350 18% Refer Note
PLC party 28.2
Kalamazoo Other related Rent income 479,190 6% Refer Note
Industries (Pvt) Ltd party 28.2
Events Occurring After the Reporting Date

No circumstances have arisen since the reporting date which would require adjustment to or
disclosure in the Financial Statements.
Extraordinary General Meeting
The Extraordinary General Meeting will be held on 1st March 2024 at 10.30 a.m.
The Notice of the Extraordinary General Meeting appears on page 01.
By Order of the Board

Paragon Ceylon PLC
Mr. L I Ratnasabapathy Ms. A M de Alwis P W Corporate Secretarial (Pvt) Ltd

Chairman Director Secretaries
20th January, 2024

Colombo

Information to Shareholders and Investors
01. Twenty Largest Shareholders as at 31.3.2023
2023 2022
No. of Shares No. of Shares
Held % Held %
1 C T Holdings PLC 213,060 21.30 213,060 21.30
2 Mr. J T Ratnanather 95,140 9.51 95,140 9.51
3 Mrs. B A J Ratnasabapathy 48,860 4.89 48,860 4.89
4 Mr. A J C Ratnanather 48,710 4.87 48,710 4.87
5 Cyril Gardiner (Private) Limited 47,520 4.75 47,520 4.75
6 Sir Chitiampalam A Gardiner Trust 46,400 4.64 46,400 4.64
7 Mr. W N S Canagaratna 40,070 4.01 40,070 4.01
8 Mr. G I Ratnanather 35,580 3.56 35,580 3.56
9 Mr. J S Ratnanather 35,570 3.56 35,570 3.56
10 Mrs. M C P Canagaratna 30,400 3.04 30,400 3.04
11 Ms. P R Canagaratna 29,820 2.98 29,820 2.98
12 Mrs. A M De Alwis 29,250 2.92 29,250 2.92
13 Dr. M T Stanislaus 28,860 2.89 28,860 2.89
14 Mr. S H A Gulamhusein 18,430 1.84 18,430 1.84
15 Mr. G T Fazleabas 15,760 1.58 15,760 1.58
16 Mrs. R M Dissanaike 14,050 1.40 14,050 1.40
17 Mrs. D B D D Danthanarayana 12,000 1.03 11,000 1.10
18 Ceylon Printers Ltd -
Group Employees Provident Association 10,320 1.00 10,320 1.03
19 Mrs. M L Emmanuel 10,000 1.00 10,000 1.00
20 Ceylon Printers Limited 9,140 0.90 9,140 0.91
818,940 81.65 817,940 81.78
Balance Shareholders 181,340 18.35 182,340 18.22
Total 1,000,280 100.000 1,000,280 100.00
02. Shareholders Analysis
No of Shares No of Shares
Held As At Held As At
31 /03/2023 % 31 /03/2022 %
Shares Held By The Public 951,166 95.09 951,160 95.09

Shares Held By Others 49,114 4.91 49,120 4.91
1,000,280 100.00 I,000,280 100.00
03. distribution of Share holding as at 31st March 2023
2023 2022 2023 2022 2023 2022

No. of Shareholders No. of Shares % Held
1 1,000 298 298 45,547 45,547 4.55 4.55

1 ,001 10,000 54 54 155,933 155,933 15.59 15.59
10,001 100,000 17 17 585,740 585,740 58.56 58.56
100,001 1 ,000,000 1 1 213,060 213,060 21.30 21.30
Over I ,000,000 0 0 0 0 0 0
370 370 1,000,280 1,000,280 100 100

Information to Shareholders and Investors
04. Analysis of Shareholders as at 31st March 2023
Category No. of Shareholders No. of Shares %
Local Individuals 319 472,036 47.19

Local Institutions 40 369,384 36.93
Foreign Individuals 9 154,500 15.45
Foreign Institutions 2 4,360 0.44
Total 370 1,000,280 100.0
05. Directors’ Shareholding as at 31st March 2023
Names of Directors No. of shares Percentage (%)
Mr. L I Ratnasabapathy Nil

Mr. J B M Ponrajah 10 0.00
Mr. P S R Casie Chitty Nil
Mr. M M Marzook Nil
Ms. A M De Alwis 29,250 2.92
SHARE PRICES FOR THE YEAR
31/03/2023 Date 31/03/2022 Date
Market price per share

Highest during the period - - - -
Lowest during the period - - - -
As at end of the period - - - -
31/03/2023 31/03/2022
No. of transactions - -
No. of Shares traded - -
Value of Shares traded (Rs.) - -
PUBLIC HOLDING
Public Holdings precentage as at 31st March 2023 95.09%
Number of shareholders representing the above precentage 367
Total No of shareholders as at 31.03.2023 372
FLOAT ADJUSTED MARKET CAPITALIZATION

The Float adjusted market capitalization as at 31st March 2023 – Rs. - 38,046,400.00

The Company is not in compliance with Rule 7.13.1 (i) (a) of the Listing Rules of the
Colombo Stock Exchange on minimum number of public shareholders.

Statement of Directors’ Responsibilities
The Companies Act No. 07 of 2007 places the responsibility on the directors to prepare financial
statements for each year comprising a balance sheet, statement of income, cash flow and changes
in equity along with the accounting policies and notes thereto, which give a true and fair view of the
state of affairs of the company at the reporting date and the results for that financial year.
The Directors are of the view that the financial statements have been prepared in accordance with
all applicable laws and the Sri Lanka Accounting Standards which have been selected and applied
consistently and judgments and estimates have been made which are reasonable and prudent.
The directors are responsible for ensuring that the company keeps accounting records with
reasonable accuracy of the financial position of the company to enable them to ensure that the
financial statements comply with the Companies Act and Sri Lanka Accounting Standards. They are
also responsible for taking reasonable steps to safeguard the assets of the company and to have
proper regard to the establishment of appropriate systems of internal controls, with a view to the
prevention and detection of fraud and other irregularities.
The Directors are also responsible for taking reasonable steps to manage the resources of the
Company and to design and implement appropriate internal control systems with a view to protect
the Company from undue risks and loss. The financial reporting system has also been reviewed by the
Board through the management accounts submitted at Board meetings.
The directors confirm that they have provided the Auditors of the company with the opportunity to
visit all locations of the company and to undertake all inspections and verifications as they considered
appropriate to conduct their audit.
The directors are of the view that the financial statements have been prepared in accordance with
all applicable laws and the Sri Lanka Accounting Standards which have been selected and applied
consistently and judgments and estimates have been made which are reasonable and prudent.
The Directors confirm that all statutory payments due and payable to all statutory and regulatory
authorities have been made by the Company up to date.
The Directors are of the view that they have discharged their obligations as set out in this statement.
By Order of the Board

Paragon Ceylon PLC
P W Corporate Secretarial (Pvt) Ltd

Secretaries
19th January 2024

Colombo

By Corporate Governance, we mean the system by which companies are managed and controlled.
This is important both to the directors of the company and its subsidiaries.
The Board of Directors of Paragon Ceylon PLC values the guiding principles of good Corporate
Governance to maintain the Company as a going concern as well as to comply with standards of
sound business and accounting policies.
The extent to which the rules and principles of good Corporate Governance are implemented within
the Company during the year is set out below.
The Board of Directors
The company’s board consists of 05 directors of whom 02 are non-executive directors. The names and
designations are given on page 02. The board meets on a regular basis and has a formal schedule of
matters reserved to it. The board is supplied with full and timely information to enable it to discharge
its responsibilities effectively. During the financial year 2022/2023 the board held five meetings and
reserved certain decisions to itself while others were delegated to the management to carry out the
operations of the Company smoothly. Circular resolutions are adopted by the board from time to
time on matters of routine importance.
Vacancies in the board are filled by a decision of the whole board. All members appointed to the
board are individuals of high standing in society, experts in their chosen fields and individuals of the
highest standards of integrity.
BOARD MEETINGS
NO OF MEETINGS HELD/
DIRECTOR NATURE OF APPOINTMENT ATTENDED
L.I. Rathnasabapathy Executive Director 03/03
J.B.M. Ponrajah Executive Director 03/03
A.M. De Alwis Executive Director 03/03
P.S.R. Casie Chitty Non-Executive Independent Director 03/03
M.M. Marzook Non-Executive Independent Director 03/03
Independent Directors
As at the reporting date Mr. M. M. Marzook and Mr. P. S. R. Casie Chitty functioned as independent
non-executive directors.
Directors’ Interests in Contracts
Directors’ interests in contracts have been disclosed and declared at the meetings of the Directors
during the year and are disclosed in Page 50 to the Annual Report also entered in the Interest Register.
Audit Committee
The audit committee consists of Mr. M. M. Marzook and Mr. P. S. R. Casie Chitty.
Remuneration Committee
The Remuneration Committee consists of Mr. P. S. R. Casie Chitty and Mr. M. M. Marzook. This
Committee makes recommendations to the Board of Directors of the Company on the remuneration
policy of the Company as well as the aggregate remuneration of the Executive Directors.
Related Party Transactions Review Committee
The Related Party Transactions Review Committee consists of Mr. P. S. R. Casie Chitty and Mr. M. M.
Marzook.
Disclosure of Information and Compliance
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.
P W Corporate Secretarial (Pvt) Ltd who act as Secretaries to the Company advises the Board on
appropriate procedures for the management of its meetings and duties as well as the compliance of
Corporate Governance in the Company.

CORPORATE GOVERNANCE Compliance Table (Colombo Stock Exchange – Listing Rule)

Subject Compliance Detail
Status
Disclosures regarding the Board of Directors
Two of the five Directors are Non-Executive Compliant Please refer page no 03
Directors
Both non-executive directors are Independent Compliant The Non-Executive Directors have submitted a
Directors Declaration of independence or non-independence
as required under the Listing Rules of the Colombo
Stock Exchange
Based on the declarations submitted by the
Directors the Board has resolved that Mr. P S R Casie
Chitty and Mr. M M Marzook can be classified as
Independent Non-Executive Directors although they
serve on the Boards of other subsidiary companies
in which a majority of the other members of the
Board are also Directors. The Board has resolved
that Mr. P S R Casie Chitty and Mr. M M Marzook
are the Independent Directors of the Company.
Non-Executive Directors have submitted Compliant
the declaration of independence /non-
independence
Names of independent Directors included in Compliant Please refer page no 03 to 04
the Annual Report
A brief resume of each Director included in the Compliant Please refer page no 03 to 04
Annual Report
Disclosures regarding remuneration and Remuneration Committee
Specify whether a separate Remuneration Compliant
Committee was formed or listed parent’s A separate Remuneration Committee was formed.
remuneration Committee used
The names of the members and the Compliant
composition of the Remunerations committee Please refer page no 09
included in the annual report
The functions and the remuneration policy of Compliant
the Remuneration Committee included in the Please refer page no 15
annual report
The aggregate remuneration paid to Executive Compliant
and Non-Executive Directors specified in the Please refer page no 37
annual report
Contents under the Audit Committee Report
Specify whether a separate Audit Committee Compliant
was formed or listed parent’s audit committee A separate Audit Committee is formed
used
The names of the members and the Compliant
composition of the Audit committee included Please refer page no 09
in the annual report
Managing Director and the Chief Financial Compliant
officer attend Audit Committee Meetings
The Chairman of the Audit Committee or one Compliant
member should be a member of a professional Please refer page no 16
accounting body
The Audit Committee shall make a Compliant

determination of the independence of the Please refer Audit Committee Report on page 16
Auditors and disclose the basis for such
determination
The Annual Report shall Contain a Report of Compliant
the Audit Committee setting out the manner Please refer Audit Committee Report on page 16
of Compliance of the functions

Remuneration Committee Report
We are pleased to present our Report for the financial year ended 31st March 2023.
Composition of the Committee

The Committee comprises two non-executive Independent Directors. The members of the Committee
are as follows:
Mr. P. S. R. Casie Chitty – Chairman

Mr. M. M. Marzook
In compliance with the requirements of the Listing Rules of the CSE, the Chairperson of the Committee
is an Independent Director.
Objective of the Committee

The Remuneration Policy on remuneration packages is to attract and retain the best professionals and
an experienced workforce and motivate and encourage high levels of performance in a competitive
environment bearing in mind the business performance and stakeholder expectations.
Meetings of Committee
The Committee met once during the year. The meeting was for the purpose of examining the
remuneration package of Managing Director, Executive Directors and the Management Staff, their
respective performances and deciding on appropriate remuneration packages for them, as well as
determining incentives based on Company performance for all management staff.
DIRECTOR POSITION HELD NO OF MEETINGS HELD/

ATTENDED
P.S.R.Casie Chitty Chairman 01/01
M.M.Marzook Member 01/01
The Committee also reviewed data concerning remuneration packages among comparable
Companies. The Managing Director assists the Committee by providing all relevant information with
regard to compensation package.
Performance Evaluation method to compensate employees is in place and succession plans have
been defined.
P.S.R.Casie Chitty
Chairman
Remuneration Committee
Colombo,
19th January 2024

Audit Committee Report
We are pleased to present our Report for the financial year ended 31st March 2023.
The Committee comprises two non-executive Independent Directors. The members of the Committee
are as follows:
Mr. M. M. Marzook – Chairman
Mr. P. S. R. Casie Chitty
In compliance with the requirements of the Listing Rules of the CSE, the Chairperson of the Committee
is an Independent Director. The Company Secretary functions as the Secretary of the Committee.
The Chairman of the Audit Committee Mr. Marzook is a Fellow of the Institute of Chartered Accountants
of Sri Lanka. He is also an Associate Member of the Chartered Institute of Management Accountants -
UK and, holds a Master of Business Administration from the University of Sri Jayawardenapura.
Mr. P. S. R. Casie Chitty is a Fellow of the Association of Chartered Certified Accountants - UK and an
Associate member of the Chartered Institute of Management Accountants - UK.
The composition of the members of the Audit Committee satisfies the criteria as specified In the
Standards on Corporate Governance for listed Companies.
The Audit Committee is empowered to examine all matters pertaining to the Financial Affairs of the
Company and assist the Board of Directors in effectively discharging their duties. The Audit Committee
examines the preparation, presentation and adequacy of disclosures in the financial statements and
whether these are in accordance with Sri Lanka Accounting Standards and whether the financial
reporting requirements, are in accordance with the Companies Act and other relevant financial
reporting related regulations and requirements.
The Audit Committee also reviewed and approved the Annual and Interim financial statements prior to
the final approval by the Board. In all instances, the Audit Committee obtained relevant declarations
from the Finance Director and Head of Finance stating that the respective financial statements are
in conformity with the applicable Accounting Standards, Company Law and other Statutes including
Corporate Governance Rules and that the presentation of such Financial Statements are consistent
with those of the Previous Quarter or Year as the case may be, and further states any departures from
financial reporting, statutory requirements and Group policies, (if any).
In addition the Audit Committee reviewed external auditors and the engagement partner’s relationships
with the Company and assessed that the external auditors are independent.
This Audit Committee also reviews the adequacy and proper continuous functioning of the Internal
Control Procedures of the Company to obtain reasonable assurances that the financial statements of
the Company accurately reflect the state of affairs of the Company and the results for the period to
which it relates. This Audit Committee also assesses major business and control risks of the company.
Three Audit Committee meetings were held during the year. The Managing Director and Head of
Finance, attended all audit committee meetings by invitation and other Senior Managers attended
such meetings as and when requested to do so by the Audit Committee.
DIRECTOR POSITION HELD NO OF MEETINGS HELD/ ATTENDED
M.M. Marzook Chairman 03/03
P.S.R. Casie Chitty Member 03/03
The Audit Committee, has recommended to the Board of Directors that Messrs. Pope & Co. Chartered
Accountants be appointed as Auditors of the Company subject to the approval of the shareholders.
M. M. Marzook
Chairman
Audit Committee
Colombo,
19th January 2024
Report of the Related Party Transactions Review Committee
We are pleased to present our Report for the Financial Year ended 31st March 2023.

The Committee comprises two non-executive Independent Directors and an executive director. The
members of the Committee are as follows:
Mr. P. S. R. Casie Chitty – Chairman

Mr. M. M. Marzook
The Committee had three meetings during the financial year 2022/2023 once in every calendar
quarter and the attendance at these meetings is given below. The Head of Finance attended all
meetings by invitation.
DIRECTOR POSITION HELD NO OF MEETINGS HELD/ ATTENDED

P.S.R. Casie Chitty Chairman 03/03
M.M. Marzook Member 03/03
The Chairperson of the Committee reported the proceedings, and significant issues discussed at the
Committee meetings are communicated to the Board after every Committee meeting. The minutes of
the Committee meetings were circulated to the Board.

The purpose of the Committee is to review all proposed related party transactions prior to being
entered into or if the transaction is expressed to be conditional to such review, prior to the completion
of the transactions except for transactions explicitly exempted in the Terms of Reference which is in
conformity with the Listing Rules.
Policies and Procedures

The members of the Board of Directors of the Company have been identified as Key Management
Personnel. In accordance with the Related Party Transaction Policy, declarations are obtained from
each Key Management Personnel of the Company for the purpose of identifying parties related
to them. Based on the information furnished in these declarations the Company retrieves data on
related party transactions from the data base of the Company.
Related Party Transactions

Details of other related party transactions entered into by the Company during the year 2022/2023 is
disclosed in Note 28.2 to the Financial Statements.
P.S.R. Casie Chitty

Chairman
Related Party Transactions Review Committee
Colombo,
19th January 2024

Auditors’ Report
POPE & COMPAY Tel : +94 11 2341737

Chartered Accountants +94 11 2541331
No. 07, Hudson Road, Fax : +94 11 2341737
Colombo 03, Sri Lanka. E-Mail : popeco@sltnet.lk
Independent Auditor’s Report Website : www.popeco.lk
To The Shareholders of Paragon Ceylon Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the separate financial statements of Paragon Ceylon PLC (the Company”), which
comprise the Statement of financial position as at 31 March 2023, and the statement of profit or
loss and other comprehensive income, statement of changes in equity and statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying separate financial statements give a true and fair view of the
financial position of the Company as at 31 March 2023, and of their financial performance and cash
flows for the year then ended in accordance with Sri Lanka Accounting Standards.
Basis for Opinion
We conducted our audit in accordance with Sri Lanka Auditing Standards (SLAuSs). Our responsibilities
under those standards are further described in the Auditor s Responsibilities for the Audit of
the separate Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by CA Sri Lanka (“Code of Ethics”). and we have fulfilled
our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Nature and Area of Focus How our Audit Addressed the Key Audit Matter
Revenue Recognition Our audit procedures included the following:
For the year ended 31 March 2023, the company • Reviewing the revenue recognition policy
reported revenue amounting to Rs. 7.4Mn as applied by the Company and its compliance
detailed in Note 5 to the financial statements. with SLFRS 15 Revenue from Contracts with
The company derives its revenue primarily from Customers.
the leasing of premises to tenants and the sale • Assessing the reasonableness of the
of goods monthly rent income derived by taking into
consideration the monthly rental agreed with
the tenants and the period occupied.
Due to the significance of revenue to these • Obtaining an understanding of and assessing
financial statements, revenue recognition has the effectiveness of the design and
been identified as a key audit matter. implementation of management’s controls in
relation to revenue recognition from revenue
transactions.
• Testing a sample of sales transactions
occurred during the year with the invoices,
delivery notes, customer acknowledgement
and receipts.
• Examining information and disclosures
provided in the financial statements.
Partners - H.M.S.K. Ekanayake FCA, FCMA N.P.D.C.T.N. Ekanayake FCA, FCMA

W.T.C. Fernando ACA
Auditors’ Report
Other Information
Management is responsible for the other information. The other information comprises the
information included in the annual report, but does not include the separate financial statements
and our auditor’s report thereon. The annual report is expected to be made available to us after the
date of this auditor’s report
Our opinion on the separate financial statements does not cover the other information included in
the annual report and we will not, express any form of assurance conclusion thereon.
In connection with our audit of the separate financial statements, our responsibility is to read the
other information identified above when it becomes available and, in doing so, consider whether the
other information is materially inconsistent with the separate financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation of financial statements that give a true and fair view
in accordance with Sri Lanka Accounting Standards and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern. Disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SLAuSs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if. Individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with SLAuSs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.

Auditors’ Report
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimated and related disclosures made by the management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubts on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty.
• exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the separate financial statements,
including the disclosures, and whether the separate financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with ethical
requirements n accordance with the Code of Ethics regarding independence, and to communicate
with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the separate financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements

As required by Section 163 (2) of the Companies Act No. 07 of 2007, we have obtained all the
information and explanations that were required for the audit and, as far as it appears from our
examination, proper accounting records have been maintained by the Company.
CA Sri Lanka membership number of the engagement partner responsible for signing this independent
auditor’s report is 2133.
POPE & Co.,

19th January 2024

Statement of Profit or Loss and Other Comprehensive Income
For the Financial Year Ended 31st March 2023 2022

Note Rs. Rs.
Revenue 5 7,404,970 4,540,405

Cost of sales (3,045,077) (1,087,435)
Gross profit 4,359,893 3,452,970
Other income 6 32,863 132,824

Selling and distribution costs (293,220) (139,133)
Administration expenses (3,618,863) (2,376,154)
Results from operating activities 480,673 1,070,508
Finance costs 7 (137,801) (86,990)

Finance income 7 195,610 59,799
Net finance income/(cost) 57,809 (27,191)
Share of results of associate company 8 (40,872) (26,852)

Profit/ (loss) before income tax expenses 497,610 1,016,465
Income tax expense 10 - (221,511)

Profit/ (loss) for the year 497,610 794,954
Other comprehensive income/(expenses)
Items that will not be reclassified subsequently to profit or loss

Remeasurement of net benefit obligation - -
Income tax effect on retirement benefit obligation - -
Fair value profit/(loss) on investment in equity instruments
designated at fair value through other comprehensive income 4,101 (3,786)
Share of other comprehensive expense of associate 8 4,645 (4,287)
Other comprehensive expense for the year, net of tax 8,746 (8,073)
Total comprehensive income/ (expense) for the year 506,356 786,881
Basic earnings per share (Rs. cts.) 11 0.50 0.79
The accounting policies and notes to the financial statements form an integral part of these financial
statements.
Figures in brackets indicate deductions / losses.


Statement of Financial Position
AS AT 31 MARCH 31.03.2023 31.03.2022

Note Rs. Rs.
Assets
Non-current assets
Investment property 12 - -
Investment in associate 13 893,759 929,985
Non current financial assets 14 85,365 81,264
Deferred tax asset 15 - -
Total non current assets 979,124 1,011,249
Current assets
Inventory 16 210,689 209,750
Trade and other receivables 17 861,494 193,055
Current tax receivable 18 526,945 490,095
Income tax refund 18.1 31,697 25,033
Dues from related companies 19 1,177,240 3,696,715
Other current financial assets 20 1,707,078 1,577,211
Cash and cash equivalents 21 106,563 104,046
Total current assets 4,621,706 6,295,905
TOTAL ASSETS 5,600,830 7,307,154
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 22 1,000,280 1,000,280
Other components of equity 23 144,443 140,342
Accumulated profit/(loss) 792,283 290,028
Total equity attributable to owners of the company 1,937,006 1,430,650
Non-current liabilities
Retirement benefit obligation 24 - -
Total non-current liabilities - -
Current liabilities
Trade and other payables 25 2,642,276 3,551,617
Dues to related companies 26 - 384,058
Bank overdrafts 27 1,021,548 1,940,829
Total current liabilities 3,663,824 5,876,504
TOTAL EQUITY AND LIABILITIES 5,600,830 7,307,154
These financial statements are prepared in compliance with the requirements of the Companies Act
No. 07 of 2007.

M. S. A. Kariapper
Head of Finance
The Board of Directors is responsible for the preparation and presentation of these financial
statements. Signed for on behalf of the Board of Directors on 19th January 2024.

L. I. Ratnasabapathy A. M. De Alwis
Director Director
statements.

Statement of Changes in Equity
For the Financial Year Ended 31st March Fair value

reserve of
financial
assets
at FVOCI/
Stated Retained available for
capital earnings sale reserve Total
Rs. Rs. Rs. Rs.
Balance as at 1 April 2021 1,000,280 (500,639) 144,128 643,769
Profit/ (loss) for the year - 794,954 - 794,954
Other comprehensive income/(expense) for the year - (4,287) (3,786) (8,073)

Other comprehensive income/(expense) for the year - 790,667 (3,786) 786,881
Write back of unclaimed dividends - - - -
Balance as at 31 March 2022 1,000,280 290,028 140,342 1,430,650
Profit/ (loss) for the year - 497,610 - 497,610
Other comprehensive income/(expense) for the year - 4,645 4,101 8,746

Other comprehensive income/(expense) for the year - 502,255 4,101 506,356
Write back of unclaimed dividends - - - -
Balance as at 31 March 2023 1,000,280 792,283 144,443 1,937,006
statements.


Statement of Cash Flows

Note Rs. Rs.
Cash flows from operating activities

Profit/(loss) before income tax 497,610 1,016,465
Adjustment for
Dividend income 6 - -
Interest income 7 (195,610) (59,799)
Interest expenses 7 137,801 86,990
Share of associate company’s profit before tax 8 40,872 26,852
Provision/(reversal) for slow moving inventory 16.1 (32,863) (28,939)
Provision for bad debts 17 - 1,826
Stock destroyed due to fire - -
(Reversal) / Loss allowance for the year 6 - -
Provision for retirement benefit obligations 25 - -
Write back of advance received 6 - -
Write-off - trade creditors 6 - -
Operating profit before working capital changes 447,810 1,043,395
Working capital adjustments

(Decrease)/ increase in inventories 31,923 92,869
Decrease/(increase) in trade and other receivables (668,438) 54,501
Increase in trade and other payables (909,342) 1,351,645
(Payments)/ receipts from related party balances 2,135,416 (3,042,603)
Cash generated from operations 1,037,369 (500,193)
WHT paid (43,515) -

Interest paid 7 (137,801) (86,990)
Net cash flows from operating activities 856,055 (587,183)
Cash flows from investing activities

Interest received 7 195,610 59,799
Investment in fixed deposits (129,867) (39,095)
Dividends received 6 - -
Net cash flows from investing activities 65,743 20,704
Cash flows from financing activities

Net cash flow from financing activities - -
Net increase in cash and cash equivalents 921,798 (566,479)

Cash and cash equivalents at the beginning of the year (1,836,783) (1,270,304)
Cash and cash equivalents at the end of the period NOTE A (914,985) (1,836,783)
Note A - cash and cash equivalents

Favourable balances
Cash in hand and at bank 106,563 104,046
Unfavourable balances
Bank overdrafts (1,021,548) (1,940,829)
(914,985) (1,836,783)
statements.

Corporate Information
1.1 Reporting entity no adjustments being made for
inflationary factors affecting these
Paragon Ceylon PLC is a public limited financial statements, except for those
liability Company incorporated and disclosed in the following notes.
domiciled in Sri Lanka and listed on
the Colombo Stock Exchange. The 1.3.5 Functional and presentation currency
Company’s Registered Office and the
principal place of business is located Items included in the financial
at No. 20, Sir Chittampalam A Gardiner statements of the Company are
Mawatha, Colombo 02. measured using the currency of the
primary economic environment in
1.2 Principal activities and nature of which the Company operates. These
operations financial statements are presented
in Sri Lankan Rupees, which is
During the year, the principal activities the Company ‘s functional and
of the Company were rental of presentation currency. All financial
premises and buying and selling of information presented in Sri Lankan
computer stationery. Rupees is rounded to the nearest
rupee unless otherwise stated.
1.3 Basis of preparation
1.3.6 Going concern
1.3.1 Statement of compliance
The Directors have made an
The financial statements of the assessment of the Company’s ability
Company are prepared in accordance to continue as a going concern, and
with Sri Lanka Accounting Standards being satisfied that it has the access to
(LKASs and SLFRSs) as issued by The the necessary resources to continue
Institute of Chartered Accountants of in business for the foreseeable future
Sri Lanka and in compliance with the confirm that they do not intend either
requirements of the Companies Act to liquidate or to cease operations.
No.07 of 2007. Therefore the financial statements
continue to be prepared on a going
1.3.2 Responsibility for the financial concern basis.
statements
1.3.7 Comparative information
The Board of Directors is responsible
for the preparation and presentation The accounting policies have been
of these financial statements of the consistently applied by the Company
company as per the provisions of the with those of the previous financial
Companies Act No. 07 of 2007. year in accordance with LKAS 01 -
Presentation of financial statements,
1.3.3 Approval of financial statements by unless otherwise stated.
the Board of Directors
1.3.8 Materiality and aggregation
The financial statements of the
Company for the year ended 31 March In compliance with LKAS 01 -
2023 were approved and authorised Presentation of Financial Statements,
for issue on 19th January 2024. each material class of similar items is
presented separately in the financial
1.3.4 Basis of measurement statements. Items of dissimilar
nature or functions too are presented
The financial statements have separately, if they are material.
been prepared on a historical cost
basis and applied consistently with

Corporate Information Contd...
1.3.9 Use of estimates and judgements 1.3.9.2 Loss allowance on financial assets
based on recoverability
The preparation of financial
statements in conformity with SLFRSs The Company reviews its trade and
and LKASs requires management other receivables at each reporting
to make judgements, estimates date and assesses whether an
and assumptions that affect the allowance should be recorded in profit
application of accounting policies and or loss. In particular, management’s
the reported amounts of assets and judgement is required in the
liabilities and disclosure of contingent estimation of the loss allowance.
assets and liabilities at the date of the
financial statements and the reported
amounts of revenue and expenses 1.3.9.3 Recognition of deferred tax assets
during the reporting period. Although
the judgements and estimates The extent to which a deferred
are based on management’s best tax asset could be recognized on
knowledge of the current events and unused tax losses carried forward is
actions, actual results may ultimately determined based on the expected
differ from those estimates. availability of future taxable profits.

Information about significant areas
of estimation uncertainty and critical
judgements in applying accounting
policies that have the most significant
effect on the amounts recognized in
the financial statements is included in
the following notes:
1.3.9.1 Actuarial assumptions used in the

computation of retirement benefit
obligation
The cost of defined benefit obligation

is determined using the projected
unit credit method. This involves
making assumptions about discount
rates, future salary increases and staff
turnover.
The key assumptions used are

disclosed in Note 24.
Due to the long term nature of these

plans, such estimates are subject to
uncertainty.

Significant Accounting Policies
2. Summary of significant accounting An asset’s carrying amount is written
policies down immediately to its recoverable
amount if the asset’s carrying amount is
The principal accounting policies applied greater than its estimated recoverable
in the preparation of these financial amount.
statements are set out below. These
policies have been consistently applied to Depreciation
all the years presented, unless otherwise
stated. Depreciation is calculated using a straight-
line method on the cost or valuation of
2.1 Property, plant and equipment all property, plant and equipment, other
than freehold land, in order to write off
The Company applies the requirements such amounts over the estimated useful
of the LKAS 16 on “Property, Plant and economic life of such assets.
Equipment” in accounting for its owned
assets which are held for use in the Depreciation is recognized in profit or loss
provision of services, or for administrative on a straight line basis over the estimated
purposes and are expected to be used for useful lives of each component of an
more than one year. item of property, plant and equipment.
Depreciation of an asset begins when it is
Basis of recognition available for use and ceases at the date
Property, plant and equipment are that the asset is disposed. Leased assets
recognized if it is probable that future are depreciated over the shorter of the
economic benefits associated with the lease term and their useful lives unless it
asset will flow to the Company and is reasonably certain that the Company
the cost of the asset can be reliably will obtain ownership by the end of the
measured. lease term.
Basis of measurement The assets residual values, useful lives and

methods of depreciation are reviewed
An item of property, plant and equipment and adjusted as appropriate at each
that qualifies for recognition as an asset is financial year.
initially measured at its cost. The cost of
an item of property, plant and equipment Derecognition
comprises of its purchase price and any An item of property, plant and equipment
directly attributable costs of bringing is derecognized upon replacement,
the asset to a working condition for its disposal or when no future economic
intended use. benefits are expected from its use. Any
Subsequent measurement gain or loss arising on derecognition of
the asset is included in profit or loss in the
Subsequent costs are included in the year the asset is derecognized.
asset’s carrying amount or recognised
as a separate asset, as appropriate, only Investment properties
when it is probable that future economic Investment properties are properties
benefits associated with the item will flow held either to earn rental income or for
to the Company and the cost of the item capital appreciation or for both, but not
can be measured reliably. All other repairs for sale in the ordinary course of business,
and maintenance are recognized in profit used in the production or supply of
or loss in the period in which those are goods or services or for administrative
incurred. services.
All classes of assets included under
property, plant and equipment are stated
at cost less accumulated depreciation and
accumulated impairment losses, if any.

Significant Accounting Policies Contd...
Basis of recognition Derecognition

Investment property is recognized if it is Investment properties are derecognized
probable that future economic benefits when either they have been disposed
that are associated with the investment of or when the investment property is
property will flow to the Company and permanently withdrawn from use and no
cost of the investment property can be future economic benefit is expected from
measured reliably. its disposal. The difference between the
net disposal proceeds and the carrying
amount of the asset is recognized in profit
Basis of measurement or loss in the period of derecognition.
An investment property is measured
initially at its cost. The cost of a purchased 2.2 Financial instruments
investment property comprises of
its purchase price and any directly Financial assets
attributable expenditure. The carrying
amount includes the cost of replacing Measurement
part of an existing Investment Property At initial recognition, the Company
at the time that cost is incurred if the measures a financial asset at its fair
recognition criteria are met and excludes value plus, in the case of a financial
the cost of day-to-day servicing of an asset not at fair value through profit or
investment property. loss (FVTPL), transaction costs that are
The cost of a self-constructed investment directly attributable to the acquisition
property is measured at its cost at the date of the financial asset. Transaction costs
when the construction or development is of financial assets carried at FVTPL are
complete. expensed in profit or loss.
The Company applies the cost model for Classification and subsequent measurement
investment properties in accordance with
The Company classifies its financial assets
Sri Lanka Accounting Standard (LKAS 40)
in the following measurement categories:
-“Investment Property”. Accordingly,
buildings classified as investment - those to be measured subsequently
properties are stated at cost less any at fair value (either through OCI or
accumulated depreciation and any through profit or loss), and
accumulated impairment losses.
- those to be measured at amortised
Depreciation cost. The classification of financial
Depreciation on the building of the assets at amortized cost and
Company is provided for on a consistent measured at fair value through other
basis, over the period appropriate to the comprehensive income depends on the
estimated useful life of the asset on a entity’s business model for managing
straight-line method. the financial asset and the contractual
cash flow characteristics of the financial
asset.
The estimated useful life is as follows:
For assets measured at fair value, gains
Buildings 50 years and losses will either be recorded in profit
or loss or OCI.

Recognition rate method. Foreign exchange gains

and losses and impairment expenses
All financial assets are initially recognized are presented as a separate line item
on the trade date, i.e., the date that charged to profit or loss.
the Company becomes a party to the
contractual provisions of the instrument. De-recognition of financial assets
This includes ‘regular way trades’:
purchases or sales of financial assets that A financial asset (or, where applicable a
require delivery of assets within the time- part of a financial asset or part of a group
frame generally established by regulation of similar financial assets) is de-recognised
or convention in the market place. when:
Subsequent measurement and gains and - The rights to receive cash flows from
losses the asset have expired.
Subsequent measurement of debt - The Company has transferred its rights

instruments depends on the Company’s to receive cash flows from the asset
business model for managing the asset or has assumed an obligation to pay
and the cash flow characteristics of the received cash flows in full without
the asset. There are two measurement material delay to a third party under
categories into which the Company a ‘pass–through’ arrangement and
classifies its debt instruments: either:
- Amortised cost: Assets that are held - The Company has transferred
for collection of contractual cash flows substantially all the risks and rewards
where those cash flows, represent of the asset or
solely payments of principal and - The Company has neither transferred
interest, are measured at amortised nor retained substantially all the risks
cost. Interest income from these and rewards of the asset, but has
financial assets is included in finance transferred control of the asset.
income using the effective interest
rate method. Any gain or loss arising When the Company has transferred
on derecognition is recognised directly its rights to receive cash flows from an
in profit or loss including impairment asset or has entered into a pass–through
losses, if any. arrangement, and has neither transferred
nor retained substantially all of the risks
- FVOCI: Assets that are held for and rewards of the asset nor transferred
collection of contractual cash flows and control of the asset, the asset is
for selling the financial assets, where recognised to the extent of the Company’s
the assets’ cash flows represent solely continuing involvement in the asset. In
payments of principal and interest, are that case, the Company also recognises
measured at FVOCI. Movements in the the associated liability. The transferred
carrying amount are taken through asset and the associated liability are
OCI, except for the recognition of measured on a basis that reflects the
impairment gains or losses, interest rights and obligations that the Company
income and foreign exchange gains has retained. Continuing involvement
and losses which are recognised in that takes the form of a guarantee over
profit or loss. When the financial asset the transferred asset is measured at the
is derecognised, the cumulative gain lower of the original carrying amount of
or loss previously recognised in OCI the asset and the maximum amount of
is reclassified from equity to profit consideration that the Company could be
or loss. Interest income from these required to repay.
financial assets is included in finance
income using the effective interest

Loss allowance of financial assets 2.4 Inventories

In relation to the impairment of financial Inventories are measured at the lower
assets, SLFRS 9 requires an expected of cost and net realizable value. Net
credit loss model to be adopted. SLFRS 9 realizable value is the estimated selling
requires the Company to measure the loss price in the ordinary course of business,
allowance for a financial instrument at an less the estimated costs of completion
amount equal to the lifetime expected and selling expenses. The cost of
credit losses (ECL) if the credit risk on inventories is accounted on a first in first
that financial instrument has increased out basis. The cost includes expenditure
significantly since initial recognition, or if incurred in acquiring the inventories and
the financial instrument is a purchased bringing them to their existing location
or originated credit‑impaired financial and condition.
asset. SLFRS 9 also requires a simplified
approach for measuring the loss 2.5 Impairment of non-financial assets
allowance at an amount equal to lifetime
The Company assesses at each reporting
ECL for trade receivables, contract
date whether there is an indication that
assets and lease receivables in certain
circumstances. Accordingly, for trade an asset may be impaired. If any indication
receivables the Company has applied the exists, or when annual impairment testing
simplified approach. for an asset is required, the Company
estimates the asset’s recoverable
2.3 Investments in associates amount.
Associates are those companies in which 2.6 Cash and cash equivalents
the Company has significant influence.
Significant influence is the power to Cash and cash equivalents in the
participate in the financial and operating statement of financial position comprise
policy decisions of the investee, but no cash at bank and in hand. Cash and Bank
control or joint control over those policies. balances are stated at the recoverable
Investments in associates are accounted value. Bank overdrafts and short term
for using the equity method of accounting borrowings that are repayable on
as per paragraph 10 of LKAS 28 since the demand and forming an integral part of
Company cannot apply the exemptions the Company’s cash management are
given under paragraph 17 due to its included as a component of cash and
equity being listed on Colombo Stock cash equivalents for the purpose of the
Exchange and are initially recognised at statement of cash flows.
cost. The financial statements include
2.7 Stated capital
the Company’s share of gains and losses
accounted under the equity method Ordinary shares are classified as equity.
from the date that significant influence Dividends on ordinary shares are
commences until the date that significant recognized in equity in the period in
influence ceases. When the Company’s which they’re approved.
share of losses exceeds its investment in
an equity accounted investee, the carrying 2.8 Dividends to shareholders of the Company
amount of that interest is derecognised
Dividend distributions to the Company’s
and the recognition of further losses is
shareholders is recognized as a liability
discontinued except to the extent that the
Company has an obligation or has made in the period in which the dividends
payments on behalf of the investee. are approved by the Company’s
shareholders.
CP Group Investments (Pvt) Ltd is an
associate of the Company, with the 2.9 Financial liabilities
Company having an effective holding of Initial recognition and measurement
33% in its equity.

The Company recognizes financial and the risks specific to the liability. The
liabilities in the statement of financial unwinding of the discount is recognized
position when the Company becomes a as finance cost.
party to the contractual provisions of the
financial liability. 2.11 Retirement benefit obligation
All financial liabilities are measured Defined benefit plan - Gratuity

subsequently at Fair Value through The defined benefit obligation recognized
Profit or Loss (FVPTL) or at amortised in the statement of financial position
cost using the effective interest method. represents the present value of the
The company only has financial liabilities defined benefit obligation at the reporting
subsequently measured at amortised date estimated using the projected unit
cost. credit method. These benefits are not
Financial liabilities measured subsequently externally funded.
at amortised cost Provision has been made in the financial
Financial liabilities that are not held for statements for retiring gratuities from the
trading or designated as at FVTPL are first year of service for all employees, in
measured subsequently at amortised conformity with LKAS 19 on Employee
cost using the effective interest method. Benefits. However, under the Payment of
The effective interest rate is the rate Gratuity Act No. 12 of 1983, the liability
that exactly discounts the estimated to an employee arises only on completion
future cash payments through the of five years of continued service. The
expected life of the financial liability, or company’s obligations under the said Act
(where appropriate) a shorter period, is determined based on the projected
to the amortised cost of the financial unit credit method carried out by the
liability. management.
A financial liability is de-recognised Gains and losses through re-measurements

when the obligation under the liability is of the defined benefit liability are
discharged or cancelled or expired. Where recognized in other comprehensive
an existing financial liability is replaced income and not reclassified to profit and
by another from the same lender on loss in subsequent periods.
substantially different terms, or the terms Defined contribution plans - EPF and ETF
of an existing liability are substantially
modified, such an new liability. The A defined contribution plan is a post
difference between the carrying value employment benefit plan under which
of the original financial liability and the an entity pays fixed contributions into a
consideration paid is recognised in profit separate entity and will have no legal or
or loss. constructive obligations to pay further
amounts. Obligations for contributions to
2.10 Provisions a defined contribution plan are recognized
A provision is recognized if, as a result of as an employee benefit expense in profit
a past event, the Company has a present or loss in the periods during which
legal or constructive obligation that can services are rendered by employees.
be estimated reliably, and it is probable The company contributes 12% and 3% of
that an outflow of economic benefits gross emoluments of employees to the
will be required to settle the obligation. Employees’ Provident Fund and to the
Provisions are determined by discounting Employees’ Trust Fund respectively for
the expected future cash flows at a pre- all employees except for one Director for
tax rate that reflects current market whom 12% of their gross emolument is
assessments of the time value of money contributed to the Ceylon Printers Group
Employees’ Provident Fund.

2.12 Contingent liabilities and contingent Deferred taxation

assets
Deferred tax is recognized on temporary
The Company does not recognize a differences at the financial position date
contingent liability but discloses its between the tax bases of assets and
existence in the financial statements. A liabilities and their carrying amounts for
contingent liability is a possible obligation financial reporting purposes. Deferred
that arises from past events whose tax liabilities generally are recognized
existence will be confirmed by uncertain for all taxable temporary differences and
future events beyond the control of deferred tax assets are recognized to the
the Company or a present obligation extent that it is probable that taxable
that is not recognized because it is not profit will be available against which
probable that an outflow of resources deductible temporary differences, carry-
will be required to settle the obligation. forward of unused tax credits or unused
A contingent liability also arises in the tax losses can be utilized. Deferred tax
circumstance where there is a liability assets or liabilities are not recognized on
that cannot be recognized because it temporary differences arising from the
cannot be measured reliably. initial recognition of an asset and liability,
if at the time of recognizing that asset and
A contingent asset is a possible asset liability, neither affects the accounting
that arises from past events whose profit nor taxable profit.
existence will be confirmed by uncertain
future events beyond the control of The carrying amount of deferred tax
the Company. The Company does not assets is reviewed at each statement of
recognize a contingent asset but discloses financial position date and reduced to the
its existence where inflows of economic extent that it is no longer probable that
benefits are probable, but not virtually sufficient taxable profit will be available
certain. to allow all or part of the deferred tax
asset to be recovered. Unrecognized
2.13 Taxation deferred tax assets are reassessed at
Income tax expense comprises of current each statement of financial position date
and deferred tax. The income tax expense and are recognized to the extent that it
is recognized in profit or loss except to has become probable that future taxable
the extent that it relates to the items profit will allow the deferred tax asset to
recognized directly in the statement be recovered.
of other comprehensive income or Deferred tax assets and liabilities are
statement of changes in equity, in which measured at tax rates that are expected
case it is recognized directly in the to apply in the year when the liability is
respective statements. settled or asset is realized.
Current taxes The principal temporary differences arise
The provision for income tax is based on from the retirement benefit obligation.
the elements of income and expenditure Current and deferred taxes for the year
as reported in the financial statements
and computed in accordance with the Current and deferred taxes are recognized
provisions of the Inland Revenue Act No. in profit or loss, except when they relate
24 of 2017 as described in Note 10 and to items that are recognized in other
its subsequent amendments. comprehensive income or directly in
equity, in which case, the current and
deferred tax are also recognized in other
comprehensive income or directly in
equity respectively.

2.14 Revenue and expenditure For the purpose of presentation of the

statement of comprehensive income, the
Revenue recognition “function of expenses” method has been
Sales of Goods adopted, on the basis that it presents
fairly the elements of the Company’s
Under SLFRS 15, revenue from sale of performance.
goods is recognised when control of the
goods or services are transferred to the 2.16 Finance income and costs
customer at an amount that reflects the Finance income comprises of interest
consideration to which the Company income. Interest income is recognized
expects to be entitled in exchange for in profit or loss as it accrues, using the
those goods. effective interest method.
Rent income Finance expense comprises interest
Rental income earned under operating payable on all financial liabilities such
lease is recognized on a straight line basis as term loans, overdrafts and finance
over the lease term. leases.
Interest 2.17 Statement of cash flows
Interest income is recognized as it accrues The statement of cash flows has been
in profit or loss using the effective interest prepared using the “indirect method” in
method. accordance with LKAS 07 on ‘Statement
of Cash Flows’. Cash and cash equivalents
Dividends comprise cash in hand and cash at bank
that are readily convertible to known
Dividend is recognized when the right amounts of cash and are subject to an
to receive such is established, which is insignificant risk of changes in value.
generally when the dividend is declared.
Interest paid is classified under operating
Gains and losses cash flows. Dividend received and interest
Net gains and losses of a revenue nature income is classified under cash flows from
arising from the disposal of property, investing activities. Dividends paid are
plant and equipment and other non classified under cash flow from financing
current assets, including investments, activities.
are accounted for in profit or loss, after Bank overdraft and short term borrowings
deducting from the proceeds on disposal, that are repayable on demand and
the carrying amount of such assets and forming an integral part of the company’s
the related selling expenses. cash management are included as a
Others component of cash and cash equivalents
for the purpose of the Statement of Cash
Other income is recognized on an accrual Flows.
basis.
2.18 Earnings Per Share (EPS)
2.15 Expenditure recognition
The EPS is calculated by dividing the
Expenses are recognized in profit or profit or loss attributable to ordinary
loss on the basis of a direct association shareholders of the company by the
between the cost incurred and the weighted average number of ordinary
earning of specific items of income. All shares outstanding during the period.
expenditure incurred in the running
of the business and in maintaining the
property, plant and equipment in a state
of efficiency has been charged to profit or
loss.

Notes to the Financial Statements
3. Accounting standards Management of Credit Risk
3.1 New Accounting Standards issued but not The Company manages its credit risk with
effective as at the reporting date different types of instruments as follows.
Following amendments to Sri Lanka Fixed Deposits
Accounting Standards issued, but not
effective as at the reporting date have not Deposits are placed only with reputed and
been applied in preparing the Consolidated established commercial banks and other
Financial Statements. The Group plans to licensed financial institutions.
apply these amendments to the standards Trade and Other Receivable
from their effective dates:
The Company is responsible for managing
Narrow-scope amendments effective and analysing the credit risk for each of
• • Amendments to LKAS 1 – Presentation their new customers before standard
of financial statements on classification payment and delivery terms and conditions
of liabilities are offered. The management assesses
the credit quality of the customer, taking
• Amendments to LKAS 8 – Accounting into account its financial position, past
Policies, Changes in Accounting experience and other factors. Sources
Estimates and Errors (Definition of of credit risks are identified, assessed
Accounting Estimates). and monitored and the company has
policies to manage the risks within various
• Amendments to LKAS 12 – 2 Deferred subcategories. The utilization of credit
Tax related to Assets and Liabitilies limits is regularly monitored. Management
arising from a Single Transaction. does not expect any losses from non-
4. Financial and capital risk management performance by these counterparties.
4.1 Financial risk management The Company establishes an allowance for

impairment that represents its estimate of
The Company is exposed to a range expected credit losses in respect of trade
of financial risks as a result of holding and other receivables.
financial instruments. In particular, the key
financial risk categories are:
• Credit risk
• Liquidity risk
• Market risk
a. Credit Risk
Credit risk arises from credit exposure to
unsecured customers and cash and cash
equivalents and deposits/investments
with banks and financial institutions and
when banks/financial institutions fail to
discharge their contractual interest and
principal on their debt obligations due to
declining financial strength.

Notes to the Financial Statements Contd...
4. Financial and capital risk management (Contd.)

The maximum exposure to credit risk for trade and other receivables at the reporting date is
Rs.861,494 (31 March 2022 - Rs. 193,055) which is recorded in Note 17.
Gross Receivables Loss Allowance Carrying Value

31-Mar-23 31-Mar-22 31-Mar-23 31-Mar-22 31-Mar-23 31-Mar-22
Past due:
Past due 0-60 days 833,125 185,806 833,125 185,806
Past due 61-120 days 19,926 75 - - 19,926 75
More than 120 days 54,216 55,451 (54,216) (54,216) - 1,235
Total 907,267 241,332 (54,216) (54,216) 853,051 187,116
As at As at
31.03.2023 31.03.2022
Rs. Rs.
Movement in the Loss Allowance
Balance at the beginning of the year 54,216 52,390
Loss allowance during the year - 1,826
Write-off of loss allowance - -
Balance at the end of the year 54,216 54,216
A loss allowance of Rs. 54,216 (31 March 2022 - Rs. 54,216) has been made in respect of trade
receivables, as at the reporting date. Unimpaired amounts are considered collectible in full,
based on historical payment pattern and analysis of customer’s credit risks.
Cash and Cash Equivalents
The Company held cash and cash equivalents for the year ended 31 March 2023 Rs.106,563 (31
March 2022 - Rs. 104,046) which is recorded in Note 21 which represents its maximum credit
exposure of these assets.
Respective credit ratings of banks in which Company cash balances held are as follows,
• Commercial Bank of Ceylon PLC - A-(lka)
b) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or other financial
assets.
Management of Liquidity Risk

The Company’s approach to managing liquidity is to ensure, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to its reputation. The Company’s approach to
managing its liquidity risk is as follows:
• Regularly monitoring of the company’s assets and liabilities in order to forecast cash flows up
to the future period.
• Monitoring the facility limits i.e. overdrafts with banks.

The table below summarizes the maturity profile of the Company’s financial obligations based on
contractual undiscounted payments.
As at 31st March 2023 On demand Less than 3 to 12 1 to 5 > 5 years Total

3 months months years (Rs)
Trade and Other Payables - 182,969 - 117,154 - 300,123
Dues to Related Companies - - - - - -
Bank Overdrafts 1,021,548 - - - - 1,021,548
1,021,548 182,969 - 117,154 - 1,321,671
As at 31st March 2022 On demand Less than 3 to 12 1 to 5 > 5 years Total

3 months months years (Rs)
Trade and Other Payables - 163,925 236,478 - - 400,403
Dues to Related Companies 384,058 - - - - 384,058
Bank Overdrafts 1,940,829 - - - - 1,940,829
2,324,887 163,925 236,478 - - 2,725,290
c. Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risks;
• Foreign exchange risk
• Interest rate risk
• Equity price risk
Foreign Currency Risk

Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to
changes in foreign exchange rates. As the Company doesn’t transact in foreign currency, it is not
exposed to foreign exchange risk.
Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company’s exposure to the risk of
changes in market interest rates relates primarily to the company’s bank overdraft and fixed
deposits.
If interest rates had been higher/ lower by 100 basis points and all other variables were held
constant, the profit before tax for the year ended 31 March 2023 would increase/decrease by
Rs. 7,871 (31 March 2022 - Rs. -2,646). This is attributable to the Company’s exposure to interest
rates on variable rates of interest.
Equity price risk

The Company’s listed and unlisted equity securities are susceptible to market price risk arising
from uncertainties about future values of the investment securities.
4.2 Capital Risk Management

The Company’s objectives when managing capital are to safeguard the Company’s ability to
continue as a going concern in order to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital. Capital is
monitored on the basis of the gearing ratio.


Rs. Rs.
5. Revenue
Rent income 3,363,450 3,141,900
Sale of goods 4,041,520 1,398,505
7,404,970 4,540,405
6. Other income
Advertising - 82,133
Sundry Income - 6,000
Reversal of Over provided gratuity - 15,752
Reversal of over provision of inventory 32,863 28,939
32,863 132,824
7. Net finance income
Finance cost
Interest expense (137,801) (86,990)
Total finance cost (137,801) (86,990)
Finance income
Interest income 195,610 59,799
Total finance income 195,610 59,799
Net finance income/(cost) 57,809 (27,191)
8. Share of associate company’s (loss)/ profit Holding %
Share of associate company’s (loss)/ profit

C. P. Group Investments (Pvt) Ltd 33 (40,872) (26,852)
(40,872) (26,852)
Share of associate company’s other
comprehensive (expense)/ income
C. P. Group Investments (Pvt) Ltd 33 4,645 (4,287)
4,645 (4,287)
9. Profit/ (loss) before income tax expense
Profit/ (loss) before income tax expense is stated after charging all expenses including the
following :
Directors’ emoluments 632,910 688,821

Directors’ fees and travelling 186,000 216,000
Salaries and related costs 124,000 86,000
EPF/ CPG EPF - 7,800
ETF - 1,950
Auditor’s remuneration 234,222 197,312


Rs. Rs.
10.
Income tax expense
Current income tax expense
Tax charge on profit for the year (Note 10.1) - -
Adjustments in respect of current income tax of previous year - -
- -
Deferred income tax expense
Relating to origination and reversal of temporary differences (Note 15) - 221,511
Income Tax Expense - 221,511
10.1 Reconciliation between current tax expense and the product of accounting profit
Accounting profit before income taxation 497,610 1,016,465

Aggregate disallowed items - 2,139
Aggregate allowable income (228,473) (104,489)
Aggregate allowable expenses - (857,500)
Taxable Profit/(Loss) from ordinary activities 269,137 56,615
Interest income 195,610 59,799

Dividend income - -
Investment income 195,610 59,799
Business income 269,137 56,615
Tax losses brought forward and utilized (464,747) (116,414)
Taxable income - -
Tax at 24% & 30% or other - -
Tax on profit for the year - -
Tax loss at the beginning of the year 7,182,487 7,298,900

Tax loss utilized for the year (464,747) (116,414)
Tax loss at the end of the year 6,717,740 7,182,486
10.2 Deferred income tax expense

Recognized in the Statement of Other Comprehensive Income - -
- -
10.3 Income tax rate considered
Businesses operating in Sri Lanka have been using the new tax rate for income and deferred taxation
that was implemented by the Inland Revenue (Amendment) Act No. 45 of 2022, which was certified on
December 19, 2022, with retrospective effect starting on October 1, 2022. Accordingly, for the first six
months company’s standard tax rate was 24% and for the second six months, a standard rate of 30%
was applied to the profits of all segments, unless this amendment is superseded by another act.
As per LKAS 12 and the guidance issued by the CA Sri Lanka, a country’s enactment process has to be
sufficiently progressed to a stage, in order for an announced tax rate to be considered as ‘substantively
enacted’ and applied in computing the current and deferred taxes. Therefore, for an income tax rate(s)
to be considered as substantively enacted for the purpose of LKAS 12, the legislative process relating
to such amendment needs to be completed. Until such time, the prevailing legislated rates have to be
considered for the purpose of LKAS 12 in determining as substantively enacted.
In accordance with the mentioned guideline, the Company computed income tax at a rate of 24% for
the first six months, 30% for the second six months, and 30% for deferred tax for the period ending
March 31, 2023.

11. Basic earnings per share

The basic Earnings per share is calculated by dividing the Earnings/ (Loss) for the Year attribut-
able to Ordinary Shareholders by the Weighted Average Number of Ordinary Shares Outstand-
ing during the Year.

Rs. Rs.
Amount used as the numerator

Profit/ (loss) attributable to ordinary shareholders 497,610 794,954
No. of ordinary shares used as the denominator

No. of ordinary shares in issue 1,000,280 1,000,280
Basic earnings per share (Rs. cts.) 0.50 0.79
12. Investment property

The investment property of the company consists of a building situated at 20, Sir Chittampalam
A Gardiner Mawatha, Colombo 2. The land on which the property has been built, has been
obtained under a long lease agreement from CT Holdings PLC and the building has been rented
out to related companies and one other party.
The Investment Property is fully depreciated. As the lease will end in 5 years and 9 months, the
building has not been fair valued and continues to be accounted for on the cost model.
Further details of the investment property are given below:

Rs. Rs.
Cost as at 01 April 2,023,248 2,023,248

Cost as at 31 March 2,023,248 2,023,248
Accumulated Depreciation as at 01 April 2,023,248 2,023,248

Accumulated Depreciation as at 31 March 2,023,248 2,023,248
Balance as at 31 March - -
Annual
Rs.
12.1 Rental income derived from investment property
Ceylon Printers PLC 806,910 1,019,820
Office Equipment PLC 1,357,350 503,700
Kalamazoo Industries (Pvt) Ltd 479,190 898,380
Avora Digital Imaging (Pvt) Ltd 720,000 720,000
3,363,450 3,141,900
12.2 Direct operating expenses arising from investment property that generated rental income
during the period.
2023 2022
Rs. Rs.
CT Holdings PLC - rent expense 6,000 2,500

12.3 Details of land and building classified as investment property
(i) Number of floors available in the building 05 (Five)

(ii) Number of square feet available in the building 32,027 sq.ft.
(iii) Names of tenants Ceylon Printers PLC
Kalamazoo Industries (Pvt) Ltd
Office Equipment PLC
Avora Digital Imaging (Pvt) Ltd

(iv) Except for Avora Digital Imaging (Pvt) Ltd, all the
others are related parties.
(v) The remaining lease period of the building (in years) 05 years and 09 months
(vi) Address of the building : No.20, Sir Chittampalam A
Gardiner Mawatha, Colombo 02.
(vii) Extent of land on which the building is constructed :
(a) Land covered by the building (built area) 46.43 perches
(b) Land not covered by the building (not built area) 1.64 perches
This investment property is mainly held to earn rentals and whilst a smaller portion is held for
use in the production or supply of goods or services or for administrative purposes. As such, the
full property is considered as an investment property since an insignificant portion is held for
use in the production or supply of goods or services or for administrative purposes.
Certain information given above has been revised in these financial statements, when
compared to the prior year’s financial statements. These revisions were required due to errors
in the interpretations of the information compared in the lease agreements.

13. Investment in associate

The Company holds a 33% stake in C.P. Group Investments (Pvt) Ltd, a Company Incorporated in
Sri Lanka whose principal activity is the Provision of Loans to employees of Related Companies.
The Associate is Accounted for using the Equity method in these Financial Statements.
Percentage No. of Cost as at Percentage No. of Cost as at

of holding shares 31.03.2023 of holding shares 31.03.2022
Rs. Rs.
Associate company
C.P. Group Investments (Pvt) Ltd 33% 5,000 50,000 33% 5,000 50,000
Carrying value Carrying value

on equity on equity
method as at method as at
31.03.2023 31.03.2022
Rs. Rs.
C.P. Group Investments (Pvt) Ltd

Net assets of the associate 2,708,357 2,818,137
Proportion of the company’s ownership interest in the associate 33% 33%
Carrying amount of the company’s interest in C.P. Group Investments (Pvt) Ltd 893,759 929,985

Rs. Rs.
Carrying value on equity method C.P. Group Investments (Pvt) Ltd

Net assets at the beginning of the year 929,985 961,124
Profit/(Loss) before tax (net of tax) (40,872) (26,852)
Other comprehensive income(expense) for the year (net of tax) 4,645 (4,287)
Net assets at the end of the year 893,759 929,985
Summarized Financial Information of Associate C.P. Group Investments (Pvt) Ltd

Income 316,972 191,004
Expenses (440,827) (272,373)
Profit/(Loss) before taxation (123,855) (81,368)
Income tax expense - -
Profit/(Loss) for the period (123,855) (81,368)
Other comprehensive income/(expense) 14,075 (12,992)
Total comprehensive income/(expense) for the period (109,780) (94,361)
Assets
Non-current assets 293,412 279,337
Current assets 3,118,677 3,526,702
3,412,089 3,806,038
Liabilities
Non-current liabilities - -
Current liabilities 703,731 987,901
703,731 987,901


Rs. Rs.
14.
Non current financial assets
Financial Assets - Fair value through OCI 85,365 81,264
85,365 81,264
All Investments in quoted Equity Securities are Carried at Fair Value. Market Value per Share
are based on the Quoted Prices available at the Colombo Stock Exchange (Level 1). However,
in respect of the Financial Year 31 March 2023. The Value has been determined basis of the
Quoted Price as of 31 March 2023 which represents a Level 1 Valuation Technique.
Investment in quoted equity securities

Fair value Fair value
No. of Cost as at as at No. of Cost as at as at
Shares 31.03.2023 31.03.2023 Shares 31.03.2022 31.03.2022
CT Land Development PLC

Total investment in quoted
equity securities 3,150 22,050 85,365 3,150 22,050 81,264
22,050 85,365 22,050 81,264
15. Deferred tax asset
Deferred Taxes are calculated on all temporary differences under the Liability method using the
Tax Rate of 30% (2021/22 - 24%).
The gross movement on the deferred tax is as follows:

Rs. Rs.
As at the beginning of the year - 221,511

Recognised in profit or loss - (3,780)
Recognised in the statement of other comprehensive income - -
Gratuity payment during the year - (217,731)
Deferred tax expense (income) resulting from reduction in tax rate - -
As at the end of the year - -
The analysis of deferred tax assets and liabilities is as follows:
On retirement benefit obligation - -
On unused tax losses carried forward 2,015,322 1,723,797
Total deferred tax assets 2,015,322 1,723,797
Total deferred tax liabilities - -
Net deferred tax assets 2,015,322 1,723,797
Deferred tax assets not recognized due to unpredictability of
future taxable profits (2,015,322) (1,723,797)
Deferred tax asset recognized in the statement of financial position - -
Deferred Tax Assets amounting to Rs. 2,015,322 (FY 21/22 - Rs. 1,723,797) arising from Carried
Forward Tax Losses amounting to Rs. 6,717,739 (FY 21/22 - Rs. 7,182,488 ) have not been
Recognized in the Financial Statements as there are no convincing evidence that Sufficient
Taxable Profits will be available against which the Unrecognized Deferred Tax Assets can be
Utilized by the Company.


Rs. Rs.
16.
Inventory
Finished goods/ trading inventory 258,533 290,457
Less: Impairment allowance for slow moving inventory (Note 16.1) (47,844) (80,707)
210,689 209,750
16.1 Impairment allowance for slow moving inventory

Opening balance 80,707 109,646
Provision for the year (32,863) (28,939)
Closing balance 47,844 80,707

Rs. Rs.
17.
Trade and other receivables
Trade debtors - Trade dues from others 167,675 241,332
- Trade dues from related parties 739,592 -
Less: Impairment allowance (54,216) (54,216)
853,051 187,116
Prepayments, deposits and advances 8,442 5,939
861,494 193,055
The maximum exposure to credit risk for gross trade receivables at the reporting date is Rs.
907,267 (2022 - Rs. 241,332)
Total Neither Past due but not impaired Impaired

past due
nor 0-60 60-120 above 120
impaired days days days
Rs. Rs. Rs. Rs. Rs. Rs.
Balance as at 31 March 2023 907,267 - 833,125 19,926 - 54,216
Total Neither Past due but not impaired Impaired

past due
nor 0-60 60-120 above 120
impaired days days days
Rs. Rs. Rs. Rs. Rs. Rs.
Balance as at 31 March 2022 241,332 - 131,590 - 55,526 54,216


Rs. Rs.
18. Current tax receivable

WHT receivable 526,945 490,095
526,945 490,095
526,945 490,095
18.1 Income tax refund
Balance at the beginning of the year 31,697 25,033
Balance tax payments - -
31,697 25,033
Tax paid for the year - -
Balance at the end of the year 31,697 25,033
19.
Due from related companies
Ceylon Printers PLC 1,011,690 2,025,170
Office Equipment PLC 165,550 -
Kalamazoo Industries (Private) Ltd - 1,671,545
1,177,240 3,696,715
20.
Other current financial assets
Investment in fixed deposits 1,707,078 1,577,211
1,707,078 1,577,211
The fixed deposits held at Commercial Bank PLC have been

pledged as security as described in Note 29.
21. Cash and cash equivalents

Components of cash and cash equivalents consist of following;
Favourable cash and cash equivalent balances
Cash at bank 101,563 99,046
Cash in hand 5,000 5,000
106,563 104,046
Unfavourable cash and cash equivalent balances
Bank overdrafts (1,021,548) (1,940,829)
(1,021,548) (1,940,829)
Cash and cash equivalents for the purpose of cash flow statements (914,985) (1,836,783)
22. Stated capital

1,000,280 Ordinary Shares in Issue (31 March 2022 - 1,000,280) 1,000,280 1,000,280
1,000,280 1,000,280
23. Other components of equity
23.1 Fair value reserve of financial assets at FVOCI
Balance as at 01 April 140,342 144,128
Profit/ (Loss) from financial assets at FVOCI 4,101 (3,786)
Balance as at 31 March 144,443 140,342
The Company has Designated Investments Reflected Under Note 14 as Financial Assets at FVO-
CI since such Investments are not held for Trading Purposes.

For the Financial Year Ended 31ST March 2023 2022

Rs. Rs.
24. Retirement benefit obligation

Movement in the defined benefit obligation recognized in the statement of financial position :
As at the beginning of the year - 922,963

Transferred to Kalamazoo Industries (PVT) Ltd - (49,711)
Interest for the year - -
Charge for the year - (15,751)
Benefits paid - (857,500)
Deficit / (Surplus) for the year - -
As at the end of the year - -
The amounts recognized in profit or loss

Interest for the year - -
Charge for the year - (15,751)
Deficit / (Surplus) for the year - -
Total - (15,751)
*Since every employee has resigned, the company doesn’t have any retirement benefit
provisions.

Sensitivity of assumptions employed in actuarial valuation
The following table Demonstrates the Sensitivity to a Reasonably possible change in the Key
Assumptions Employed with all Other Variables held Constant in the Employment Benefit
Liability Measurement.
The Sensitivity of the Income Statement and Statement of Financial Position is the Effect of
the Assumed Changes in Discount Rate and Salary Increment Rate on the Profit or Loss and
Employment Benefit Obligation for the Year.
Discount rate Salary increment rate

Increase/ (decrease) 1% (1%) 1% (1%)
Increase/ (reduction) in profit before tax - - - -
for the year
Increase/ (decrease) in the liability for the - - - -
year
The employee benefit liability of the company has been computed by the management using
the projected unit credit method.
The principal assumptions used in determining the cost of employee benefits were:

- Rate of discount - -
- Salary increment rate - -
- Retirement age - -
- Average expected future service years - -


Rs. Rs.
25.
Trade and other payables
Trade creditors 300,123 400,403
Expense creditors 2,342,154 3,151,214
2,642,277 3,551,617
26. Dues to related companies

Office Equipment PLC - 191,825
International Computers (Ceylon) Ltd - 192,233
- 384,058
27. Bank overdraft
Current
Bank Overdrafts 1,021,548 1,940,829
Total current loans and borrowings 1,021,548 1,940,829
28. Related party transactions
28.1 Transactions with Key Management Personnel
Related Parties include Key Management Personnel defined as those persons having Authority
and Responsibility for Planning, Directing and Controlling the Activities of the Company. Key
Management Personnel include members of the Board of Directors of the Company.
Compensation paid to Key Management personnel are as follows:
2023 2022
Rs. Rs.
Cash and non-cash benefits 818,910 904,821
Name Relationship Nature of transactions
Mr.J.B.M. Ponrajah Director Salary,fees and reimbursements 668,910 724,821

Mr.P.S.R.Cassie Chitty Director Fees and reimbursements 36,000 36,000
Mr.L.C.G.Ratnanather Director Fees and reimbursements 6,000 36,000
Mr.M.M.Marzook Director Fees and reimbursements 36,000 36,000
Mrs.A.M.De Alwis Director Fees and reimbursements 36,000 36,000
Mr.L.I.Ratnasabapathy Chairman Fees and reimbursements 36,000 36,000
818,910 904,821

28.2 Related party transactions

Transactions between related companies are disclosed below:

Rs. Rs.
Name of Company Relationship Nature of Transactions

Ceylon Printers PLC Other related party Rent income 806,910 1,019,820
Net expense
reimbursements 1,568,436 (2,200,170)
Sales of Goods and
Services 1,011,175 (10,185)
Fund transfers (2,581,915) (873,995)
Net effect of transactions during the year 804,606 (2,064,530)
International Computers
(Ceylon) Ltd Other related party Expense reimbursements - 100,000
Fund transfers (192,233) -
Net effect of transactions during the year (192,233) 100,000
Kalamazoo Industries
(Private) Ltd Other related party Rent income 479,190 898,380
Expense reimbursements - 49,711
Fund transfers 1,671,544 (1,348,380)
Net effect of transactions during the year 2,150,734 (400,289)
Office Equipment PLC Other related party Rent income 1,357,350 503,700
Sale of goods 25,500 -
Expense reimbursements 248,325 477,785
Fund transfers 109,050 (503,700)
Net effect of transactions during the year 1,740,225 477,785
There have been no related party transactions other than those disclosed above to be disclosed
in the financial statements.
All balances are unsecured and repayable on demand. No guarantees have been issued or
received in respect of any related party balances. All balances are fully recoverable and payable
in cash. Further, the transactions with the related parties are entered on pre-agreed terms.
29.
Assets pledged
The following assets have been pledged to Commercial Bank PLC, as securities for the facilities
obtained.

Facility Security Amount
Rs.
Overdraft Facility 1. Lien over fixed deposit in the name of Paragon Ceylon PLC. 1,350,000
2. Letter of authority and set-off.

30. Financial instruments - fair values and risk management
30.1 Accounting classification and fair value of financial instruments

The Summary of significant Accounting Policies describes how the Classes of Financial
Instruments are Measured, and how Income and Expenses, including Fair Value Gains/(Losses),
are recognised. Financial Assets of the Company include Bank Balances and Cash, Trade and
Other Receivables, Deposits and Dues from Related Parties. Financial Liabilities of the Company
include Interest Bearing Loans and Borrowings, Trade Payables and Other Payables.
The Fair Values of the Financial Assets and Liabilities are not materially different from their
Carrying Value unless Stated otherwise.
30.2 Analysis of financial instruments

All Assets and Liabilities for which Fair Value is Measured or Disclosed in the Financial
Statements are categorized within the Fair Value Hierarchy, described as follows, based on the
Lowest Level Input that is significant to the Fair Value Measurement as a whole;
Level 1 – Inputs that are Quoted Market Prices (unadjusted) in Active Markets for Identical
Assets or Liabilities.
Level 2 – Valuation Techniques for which the Lowest Level Input that is
Significant to the Fair Value Measurement is Directly or Indirectly Observable.
observable.”
Level 3 – Valuation Techniques for which the Lowest Level Input that is Significant to the Fair
Value Measurement is Unobservable.
Determination of fair value and fair value hierarchy

Set out below is the Comparison, by Classes, of the Carrying Amounts of Fair Values of the
Company’s Financial Instruments that are Not Carried at Fair Value in the Financial Statements.
This table does not include the Fair Values of Non-Financial Assets and Non-Financial Liabilities.
2023 2022
Carrying Carrying
amount Fair value Amount Fair value
Rs. Rs. Rs. Rs.
Financial assets
Non-current financial assets 85,365 85,365 81,264 81,264
Trade and other receivables 861,494 861,494 193,055 193,055
Dues from related companies 1,177,240 1,177,240 3,696,715 3,696,715
Other current financial assets 1,707,078 1,707,078 1,577,211 1,577,211
Cash and cash equivalents 106,563 106,563 104,046 104,046
Financial liabilities
Trade and other payables 2,642,276 2,642,276 3,551,617 3,551,617
Bank overdrafts 1,021,548 1,021,548 1,940,829 1,940,829
Dues to related companies - - 384,058 384,058

30.3 Financial instruments - fair values and risk management (contd.)
Fair value of financial assets and liabilities not carried at fair value
The following describes the Methodologies and Assumptions used to determine the Fair Values
for those Financial Instruments which are not already Recorded at Fair Value in the Financial
Statements.
Assets for which fair value approximates carrying value

For Financial Assets and Financial Liabilities that have a Short Term Maturity (Original Maturities
Less Than a Year), it is assumed that the Carrying Amounts Approximate their Fair Values. This
assumption is also Applied to Fixed Deposits, Certificate of Deposits and Savings Deposits
without a Specific Maturity.
Fixed rate financial instruments

Carrying Amounts are considered as Fair Values for Short Term Credit Facilities.
31. Commitments and contingencies

There were no Commitments and Contingencies existing as at the Reporting Date.
Other than for the above, there were no significant events after the Reporting Date which
require Adjustments to or Disclosures in the Financial Statements.

Directors Interest In Contracts
The Directors of the company are also the Directors of following companies.
Name of Company Names of Directors
Ceylon Printers PLC Mr. L. I. Ratnasabapathy

Mr. M. M. Marzook
Ms. A. M. de Alwis
Mr. M.R.Y. Riffai
Ms. D.T. De Alwis
International Computers (Ceylon) Ltd Mr. L. I. Ratnasabapathy

Mr. L. C. G. Ratnanather
Ms. A. M. de Alwis
Kalamazoo Industries (Pvt) Ltd Mr. L. I. Ratnasabapathy

Ms. A. M. de Alwis
Office Equipment PLC Mr. L. I. Ratnasabapathy

Mr. M. M. Marzook
Ms. A. M. de Alwis
Mr. M.R.Y. Riffai
Ms. D.T. De Alwis
C. P. Group Investment (Pvt)Ltd Mr. L. I. Ratnasabapathy

Ms. A. M. de Alwis

Five Year Review
As at the year ended 31st March 2023 2022 2021 2020 2019
Financial Results
Revenue 7,404,970 4,540,405 4,372,400 4,666,871 4,627,933
Results from Operations 480,673 1,070,508 867,401 460,509 (3,424,967)
Net finance (Costs)/Income 57,810 (27,191) 32,532 42,502 142,919
Profit/(Loss) Before Taxation 497,610 1,016,465 910,035 458,449 (3,307,808)
Tax Expenses 0 (221,511) (7,292) 26,839 (10,332)
Profit/(Loss) for the Year 497,610 794,954 902,743 485,288 (3,318,140)
Attributable to -
Owners of the Parent - - - - -
Non-controlling Interest - - - - -
497,610 794,954 902,743 485,288 (3,318,140)
Financial Position
Stated Capital 1,000,280 1,000,280 1,000,280 1,000,280 1,000,280
Reserves 936,725 430,350 (356,512) (1,412,990) (1,828,274)
Total Equity Attributable to Equity 710)
Holders of the Parent 1,937,005 1,430,650 643,768 (412,710) (827,994)
Non-controlling Interest - - - - -
Total Equity 1,937,005 1,430,650 643,768 (412,710) (827,994)
Borrowings
Borrowings - - - - -
Trade Payables 2,642,276 3,551,617 1,277,008 2,688,410 1,375,176
2,642,276 3,551,617 1,277,008 2,688,410 1,375,176
Net Assets
Current Assets 4,621,706 6,295,905 3,949,279 6,390,949 6,176,054
Current Liabilities (3,663,825) (5,876,505) (3,650,233) (7,190,053) (7,574,022)
Net Current Assets 957,881 419,400 299,046 (799,104) (1,397,968)
Non-Current Liabilities - - (922,963) (840,704) (722,322)
Non-Current Assets 979,124 1,011,250 1,267,685 1,227,098 1,292,296
Total Net Assets 1,937,005 1,430,650 643,768 (412,710) (827,994)
Ratios &Statistics
Growth in Annual Turnover (%) 63.09 3.84 (6.30) 0.84 22.81
Earnings per Share (Rs.) 0.50 0.79 0.90 0.49 (3.32)
Dividend per Share (Rs.) 0.00 0.00 0.00 0.00 0.00
Market Price per Share (Rs.) 0.00 0.00 42 0.00 50
Net Asset Value per Share 1.93 1.43 0.64 (0.41) (0.82)
Note
All per share details have been calculated, for all periods, based on the number of shares in issue as
at 31st March 2023.

Notes
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Form of Proxy
I/We the undersigned....................................................having NIC No...................................................
of …………………………….....................................................………………………………………………………………………
being a shareholder/s* of Paragon Ceylon PLC hereby appoint:
.................................................................................................................................................................
of…………………………………………………........................................................……………………………………………….
Mr. L.I. Ratnasabapathy or failing him*
Ms. A.M. de Alwis or failing her*
Mr. J.B.M. Ponrajah or failing him*
Mr. P.S.R. Casie Chitty or failing him*
Mr. M.M. Marzook or failing him*
Mr. M.R.Y. Riffai or failing him*
Ms. D.T. De Alwis
my/our * Proxy to vote and speak as indicated hereunder for me/us* and on my/our* behalf at the
Extraordinary General Meeting of the Company to be held on 1st March 2024 and at every poll which
may be taken in consequence of the aforesaid Meeting and at any adjournment thereof:
For Against
Resolution 1
To appoint Messrs. Pope & Co., Chartered Accountants as the Auditors of
the Company and authorize the Directors to determine their remuneration.
In witness my/our* hands this ........................ day of ........................ Two Thousand and Twenty Four.
..............................................
Signature of Shareholder(s)
* Please delete the inappropriate words.

Instructions as to completion appear on the reverse.

Form of Proxy Contd...
INSTRUCTIONS FOR COMPLETION OF FORM OF PROXY
1. This Form of Proxy must be deposited at the Registered Office No. 20,
Sir Chittampalam A Gardiner Mawatha, Colombo 2 not less than forty
eight (48) hours before the time fixed for the Meeting.
2. In perfecting the Form of Proxy please ensure that all details are legible.
3. If you wish to appoint a person other than a Director of the Company

as your proxy, please insert the relevant details in the space provided.
4. Please indicate with an ‘X’ in the space provided, how your proxy is
to vote on the resolution. If no indication is given, the proxy in his
discretion will vote as he thinks fit.
5. In the case of a Company/Corporation, the proxy must be under its

Common Seal, which should be affixed and attested in the manner
prescribed by its Articles of Association.
6. In the case of a Proxy signed by an Attorney, the Power of Attorney

must be deposited at The Secretaries’ Office (i.e. P W Corporate
Secretarial (Pvt) Ltd, 3/17, Kynsey Road, Colombo 8) for registration.

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Paragon Ceylon PLC

BY ORDER OF THE BOARD

ANNUAL REPORT- 2023 1

Mr. M. R. Y. Riffai (Appointed w.e.f. 01st December 2023)

Ms. D. T. De Alwis (Appointed w.e.f. 01st December 2023)

2 ANNUAL REPORT- 2023

J. B. M. Ponrajah – Executive Director

P. S. R. Casie Chitty – Independent Non-Executive Director

M. M. Marzook – Independent Non-Executive Director

A. M. De Alwis – Executive Director

ANNUAL REPORT- 2023 3

M. R. Y. Riffai – Independent Non-Executive Director

D. T. De Alwis – Independent Non-Executive Director

Currently working as the CEO of Lakderana Investments Ltd.

4 ANNUAL REPORT- 2023

19th January, 2024

ANNUAL REPORT- 2023 5

Revenue 7,404,970 4,540,405

6 ANNUAL REPORT- 2023

ANNUAL REPORT- 2023 7

8 ANNUAL REPORT- 2023

Audit Committee Remuneration Committee

The Report on Corporate Governance is given on pages 13 to 14 of the Annual Report.

Events Occurring After the Reporting Date

By Order of the Board

Mr. L I Ratnasabapathy Ms. A M de Alwis P W Corporate Secretarial (Pvt) Ltd

20th January, 2024

ANNUAL REPORT- 2023 9

01. Twenty Largest Shareholders as at 31.3.2023

02. Shareholders Analysis

Shares Held By The Public 951,166 95.09 951,160 95.09

03. distribution of Share holding as at 31st March 2023

2023 2022 2023 2022 2023 2022

1 1,000 298 298 45,547 45,547 4.55 4.55

10 ANNUAL REPORT- 2023

04. Analysis of Shareholders as at 31st March 2023

Category No. of Shareholders No. of Shares %

Local Individuals 319 472,036 47.19

05. Directors’ Shareholding as at 31st March 2023

Names of Directors No. of shares Percentage (%)

Mr. L I Ratnasabapathy Nil

SHARE PRICES FOR THE YEAR

31/03/2023 Date 31/03/2022 Date

Market price per share

FLOAT ADJUSTED MARKET CAPITALIZATION

ANNUAL REPORT- 2023 11

By Order of the Board

P W Corporate Secretarial (Pvt) Ltd

19th January 2024

12 ANNUAL REPORT- 2023

ANNUAL REPORT- 2023 13

CORPORATE GOVERNANCE Compliance Table (Colombo Stock Exchange – Listing Rule)

The Audit Committee shall make a Compliant

14 ANNUAL REPORT- 2023

Composition of the Committee

Mr. P. S. R. Casie Chitty – Chairman

Objective of the Committee

DIRECTOR POSITION HELD NO OF MEETINGS HELD/

19th January 2024