C W Mackie : Annual Report 2021/22

C. W. MACKIE PLC

ANNUAL REPORT 2021/22

ii	COMPANY/GROUP OVERVIEW	Annual Report 2021/22 C. W. MACKIE PLC

As we commemorate a milestone year for governance and reporting, we look back on our legacy while celebrating our unhindered progress amid uncertainty.

During the year under review, we embarked upon and successfully steered a growth strategy that helped sustain our diverse operations. While the economy braced itself in unpredictable times, we played to our strengths and was able to maintain

our status among leading exporters, developing our segments to adapt and perform with a concentrated effort. The significance of what we have achieved now and over the decades, therefore, as recorded over the years, extends to

our teamwork and our passion for excellence and we credit this strategy as the stepping stone for our continued ascent. Here's to many more years of resilient growth.

The theme in this report uses a continuous line, meant to denote continuous improvement; an ongoing effort to improve all elements of an organisation, its processes, tools, products, services, etc. Sometimes those improvements are big, at times they are small. But most importantly they are frequent, giving tranformational results, building a competitive edge and a continued ascent.

2	COMPANY/GROUP OVERVIEW

CONTENTS

COMPANY/GROUP OVERVIEW

Our Values

Our Timeline

Our Beginning

Group Structure and Principal Activities

What We Do

Year in Review

STEWARDSHIP

Chairman/Chief Executive Officer's Review Board of Directors

Group Management

CERTIFICATIONS, AWARDS AND BRANDS

Accreditations and Certifications

Awards

Strong Brands

BUSINESS/SECTOR REVIEW

Business Overview

FMCG

Rubber-based Products Manufacturing

Export Trading

Sugar Trading

Refrigeration and Air-Conditioning

Lightweight Machinery and Welding Electrodes

Hempel Paints

CAPITAL MANAGEMENT REVIEW

Value Creation Model

Financial Capital

Intellectual Capital

Manufacturing Capital

Social and Relationship Capital

Natural Capital

Human Capital

GOVERNANCE

Annual Report of the Board of Directors

Statement of Directors' Responsibility

Corporate Governance

Risk Management

Report of the Nomination Committee

Report of the Remuneration Committee

Report of the Related Party

 Transactions Review Committee

Report of the Audit Committee

Annual Report 2021/22 C. W. MACKIE PLC

3	12
4
5
6	Chairman/Chief Executive
7
8	Officer's Review
12	24
17
20
22	Strong Brands
23
24	31
31
36
42	Business Overview
45
48	86
51
53
55
58	Corporate Governance
59
63
65	FINANCIAL REPORTS
67	Independent Auditor's Report	100
72	Statement of Profit or Loss and
75	other Comprehensive Income	105
	Statement of Financial Position	106
80	Statement of Changes in Equity	107
Statement of Cash Flows	109
85	Notes to the Financial Statements	110
86
91	SUPPLEMENTARY INFORMATION
95	Ten Year Historical Summary	168
96	Consolidated Statement of Value Added	169
97	Investor Information	171
Notice of Meeting	173
98	Form of Proxy	175
	Corporate Information	Inner Back Cover

C. W. MACKIE PLC Annual Report 2021/22

OUR VALUES

VISION

To be recognised as one of the top ten trading houses in Sri Lanka.

MISSION

The primary purpose of C. W. Mackie PLC and its subsidiary companies (CWM Group) is to maximise financial returns on investments in the best interests of all its stakeholders whilst fulfilling an obligation to contribute, over the long term and to the fullest extent possible, to greater efficiency and growth of the total economy of the country.

COMPANY/GROUP OVERVIEW

3

GOALS

Each company within the CWM Group will accomplish the primary objective by:

Achieving financial, technical and commercial independency by operating separate business power clusters as an ongoing, self-sustaining and viable entity;

Maintaining market competitive advantages, both locally and internationally, by operating in a sound business manner, manufacturing and selling quality products and services at the best possible cost;

Maintaining financial, technical and commercial competence and optimising operating efficiencies;

People centric approach to attract, build and retain best-in-class human resources to serve business productively; and

Business expansion and diversification involving the development of profitable value-added products and services for export, import substitution and local consumption by optimising the use of existing and potential strengths and resources available.