Expolanka : Annual Report 2021/2022

EXPOLANKA HOLDINGS PLC

INTEGRATED ANNUAL REPORT 2021/22

SYNERGISED TO SUCCEED

EXPOLANKA HOLDINGS PLC

INTEGRATED ANNUAL REPORT 2021/22

2	EXPOLANKA HOLDINGS PLC	1
INTEGRATED ANNUAL REPORT 2021/22

SYNERGISED TO SUCCEED

In a year that demanded resilience, resistance and adaptability, we looked to leverage on the strengths that we had been afforded in order to solidify our leadership on a global scale. While our stakeholders run the gamut of diversity and may be oceans apart, our dedication to bringing comprehensive products and services, thereby adding value to customer lives, connected us and helped us to reach our growth potential. Driven by our innate need to carry on the story begun more than four decades ago, this year also saw us making significant strides in ensuring that our framework of sustainability is placed front and centre in all that we do.

We're striving to strengthen our unified whole, bringing us ever closer to our aspirations.

We are synergised to succeed.

EXPOLANKA HOLDINGS PLC	2
INTEGRATED ANNUAL REPORT 2021/22

CONTENTS

OVERVIEW	INTEGRATED MANAGEMENT	OPERATIONAL
	DISCUSSION AND ANALYSIS	REVIEW
About the Report / 4	Sustainability Strategy / 51	Organisational Structure / 111
Expolanka Holdings PLC Integrated Report / 7	Stakeholder Engagement / 53	Sector Report / 112
About Us / 8	Materiality Analysis / 59	Logistics / 112
Highlights of the Year / 9	Capital Management Reports / 65	Leisure / 128
Group Strategy / 18	Financial Capital / 65	Investment / 138
Business Model / 22	Manufactured Capital / 72
Group Milestones / 24	Intellectual Capital / 73
Geographic Footprint / 26	Human Capital / 80
Financial Highlights / 27	Social And Relationship Capital / 93
Board of Directors / 28	Natural Capital / 101
Senior Management Team / 31
Chairman's Message / 34
Group CEO's Review / 38
Financial Indicators / 44
Group Performance / 46

COMPLIANCE	FINANCIAL	SUPPLEMENTARY
REPORT	REPORT	INFORMATION
Corporate Governance / 148	Annual Report of the Board of Directors on the	Group Real Estate Portfolio / 297
Risk Management Report / 171	Affairs of the Company / 194	Ten Year Summary / 298
Related Party Transactions Review Committee	The Statement of Directors' Responsibility / 200	Share Information / 302
Report / 183	Audit Committee Report / 201	Financial Calendar / 306
Remuneration Committee Report / 186	Independent Auditors' Report / 204	Corporate Information / 307
GRI Index / 187	Statement of Financial Position / 209	Notice of Meeting / 308
Independent Assurance Report / 191	Statement of Profit or Loss / 211	Form of Proxy / 309
	Statement of Comprehensive Income / 212	Notes / 311
	Statement of Changes in Equity / 213	OVERVIEW
	Statement of Cash Flows / 215
	Notes to the Financial Statements / 217

EXPOLANKA HOLDINGS PLC	4
INTEGRATED ANNUAL REPORT 2021/22

ABOUT THE

REPORT

EXPOLANKA HOLDINGS PLC	5
INTEGRATED ANNUAL REPORT 2021/22

ABOUT THE

REPORT

GRI 102-10,102-12,102-46,102-48-56	REPORT SCOPE AND BOUNDARY

Wherever relevant, we draw comparative data vis-à-

REPORTING METHODOLOGY

Upholding our commitment to responsible reporting, Expolanka Holdings PLC (Expolanka) is pleased to present its 8th integrated annual report themed Synergized to Succeed'. Our report focuses on how we allocate

and leverage on our core capitals to create sustainable value in the short, medium to long-term across our businesses.

Reporting Guidelines and Frameworks

Overall Reporting

""Integrated Reporting Framework, 2021, Integrated Reporting Council

Sustainability Reporting

""Consolidated Set of GRI Sustainability Reporting Standards, 2020, this report has been prepared in accordance with the GRI Standards: "Core option" (GRI content index: refer page 187)

""Most recent integrated report for the year ended 31st March 2021

Following a 12-month reporting cycle, this annual report is published for the financial year 1st April 2021 to 31st March 2022. The report also includes material events up until the Board approval date of 16th June 2022.

This annual report covers the operations at the holding company level and subsidiary companies across three business sectors located across its global operations. This includes the operations of our flagship sector, and logistics along with leisure and investments sectors. The report presents the consolidated results for the Expolanka Group unless otherwise stated. The report does not cover entities that are not operationally controlled by the Group.

vis the trends and results of the preceding financial year, 2020/21. There are no material changes to the scope of the report nor restatements of information provided in the preceding year annual report. There were no significant changes in the organization's size, structure or ownership. The past annual reports for 10 years are available on our website: www.expolanka. com.

TARGETED READERS

Our annual report is primarily targeted to meet the information requirements of our valued shareholders and prospective investors. This report is also prepared to address other stakeholders including our employees, customers, business partners, regulators and members of the communities in which we

The report content is developed on the information and data gathered from management information reports and financial statements of the Expolanka Group. The information is also ascertained through structured discussions with the senior management and relevant teams representing the holding company as well as from the respective sector companies. We also carried out desk research for publicly available information. The accuracy, completeness and relevance of content are verified and validated by the respective sector heads and the Senior Management Team.

FORWARD-LOOKING STATEMENTS

The Annual Report herein contains forward-looking statements and information. However, the reality of the operational backdrop may change our business expectations, future outlook, plans and forecasts. Shareholders and other stakeholders are advised to be cautious on placing too much emphasis on such statements as the reality may materially differ with the projected and anticipated information. The Company does not undertake

to publicly update the forward-looking statements to reflect the changes after the date of this report, except, in compliance with the applicable rules and regulations set by relevant statutory and regulatory bodies.

""UN Global Compact Principles

Financial/Operational

""Company's Act No. 07 of 2007

""International Financial Reporting Standards, IFRS Foundation

""Sri Lanka Accounting Standards (SLFRSs/ LKASs), Institute of Chartered Accountants of Sri Lanka

Corporate Governance

""Code of Best Practice on Corporate Governance 2017 - Institute of Chartered Accountants of Sri Lanka and the Securities and Exchange Commission of Sri Lanka

""Continuous Listing Rules of the Colombo Stock Exchange

Aligned with the integrated reporting principles, this year, we continue to build and refine our reporting process to disclose a balanced account of how we create value to meet our stakeholder expectations. Our report content is developed on the premise of 'materiality' from an economic, environmental, social and governance perspective. Accordingly, we focus on both financial and non-financial results.

The report sets out our business model, highlighting on how we blend in our capitals to create and preserve value. Our strategy in response to risks and opportunities, both at the group level and the sectors, are broadly discussed whilst reporting on the measures we have adopted in risk management and corporate governance. We aim to provide direction of

operate.

COMBINED ASSURANCE

Following best and current practices in reporting, we continue to be steadfast in our efforts to present our information with integrity, credibility, completeness, and conciseness. Internally, the integrated reporting process and content are assured by the internal auditors, senior management, and the Board of Management. Our consolidated financial statements and notes along with sustainability information aligned with GRI Standards are assured by our external auditors-Ernst & Young.

Board Responsibility Statement

The Board of Directors of Expolanka Holdings PLC acknowledges its responsibility to ensure the integrity of this annual report following the Integrated Reporting Framework. The Board assures that the report addresses all material matters significant for the Group's value creation process and presents a balance account of the consolidated performance. This report was approved by the board of directors on 16th June 2022.

Signed for and on behalf of the Board

Feedback

Any queries, clarifications and feedback on this annual report are to be directed to:

Mushtaq Ahamed

Director - Group Finance, Expolanka Holdings PLC

Address: 15A, CLifford Avenue, Colombo 3

Email: [e-mail]

our strategies as we forge ahead in to the future.

Chairman - Board of Directors 16th June 2022, Colombo

EXPOLANKA HOLDINGS PLC	6	EXPOLANKA HOLDINGS PLC
INTEGRATED ANNUAL REPORT 2021/22	INTEGRATED ANNUAL REPORT 2021/22

ABOUT THE

EXPOLANKA HOLDINGS PLC

REPORT

INTEGRATED REPORT

NAVIGATING THE REPORT

Capitals

CARBON NEUTRAL CERTIFICATE

Climate Smart Initiatives (Pvt ) Ltd assures that

Expolanka Holdings PLC's

Integrated Annual Report for the financial year 2021/22

is a carbon neutral product having offset Integrated Annual Report's carbon footprint of 1.04 tCO2e by purchasing United Nations Certified Emission

Reductions (CERs) from the project activity 6702 registered under UN Clean Development Mechanism.

Product carbon footprint has been measured and reported in accordance with the requirements of

1. ISO 14067: 2018 (E) Standard &

2. Greenhouse Gas Protocol (Life Cycle Accounting and Reporting Standard) developed by World Business Council for Sustainable

Development and World Resource Institute.

Certificate No

: ClimateSI/CNP/017

Date of Certification

: 09/ 06/ 2022

Period of Assessment

: 01/04/2021 to 31/03/2022

Period of Validity

: 01/04/2022 to 31/03/2023

Scope of Certification

: Cradle to Gate

Financial

Manufactured

Intellectual

Human

Social and

Natural

capital

capital

capital

capital

relationship

capital

capital

........................................................

Eng.H.M. Buddika Hemashantha

(Bsc (Hons) Eng., M.Eng.)

Chief Executive Officer

Climate Smart Initiatives (Pvt) Ltd

DATE: 1 MAY 2022

REFERENCE: VC23448/2022

Stakeholders

Presented to

VOLUNTARY

CANCELLATION

Expolanka Holdings PLC

Project

CERTIFICATE

Jangi 91.8 MW wind farm in Gujarat

Reason for cancellation

To achieve the carbon neutrality of Expolanka Holdings PLC' s annual report for the year

2021/22, assessed by Climate Smart Initiatives (Pvt) Ltd.

Number of units

2

CERs

cancelled

Equivalent

to 2tonne(s) of CO2

Start serial number: IN-5-273594446-2-2-0-6702

The certificate is issued in accordance with the procedure for voluntary

End serial number: IN-5-273594447-2-2-0-6702

cancellation in the CDM Registry. The reason included in this certificate is

provided by the cancellor.

Stakeholders and

Employees

Customers

Suppliers

Community

Regulators

investors

7

A CARBON NEUTRAL PUBLICATION

As our Integrated Annual Report has been a carbon neutral publication this year, it stands as an example of our commitment to reduce emissions that could cause irreversible damage to the environment. In order to map the carbon footprint of Expolanka's Integrated Annual Report, comprehensive data was gathered by Climate Smart Initiatives (Pvt)

Ltd. Following this in-depth analysis based on the ISO 14067 :2018 (E) methodology, the total amount of Green House Gas (GHG) emissions accumulated at each stage of the product lifecycle of the Integrated Report 2021/22 was then measured in CO2 equivalent.

The contribution we have made to obtain the carbon offset credit will be used for the upkeep of a Wind farm which generates renewable energy. We selected this project which is ultimately the provision of more renewable and sustainable approaches to solving environmental problems.