Hatton Plantations : Annual Report 2021-2022

HATTON PLANTATIONS PLC

ANNUAL REPORT 2021-2022

OUR FUTURE

"To be the most admired

Plantation Company in Sri Lanka"

OUR PURPOSE

"Growing Hatton Plantations to

be the Industry Leader"

OUR VALUES

Our Approach	Our Heritage	Our Solutions	Our Promise	Trust
Integrity, Honesty,	Perseverance,	Innovation,	Responsibility,	The foundation
open and	Never give up	Improvement	Accountability to	upon which we
transparent		through	all stakeholders	grow
		continuous change

We face a whole new set of economic & social challenges locally and globally.

We have a huge positive energy to re-shape our strategies and rise above these challenges.

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HATTON PLANTATIONS PLC • ANNUAL REPORT 2021 | 22

Contents

SUPPLEMENTARY INFORMATION FINANCIAL REPORTS GOVERNANCE LEADERSHIP AND ACHIEVEMENTS

03...ABOUT THIS REPORT

04...HIGHLIGHTS

05...ABOUT HATTON PLANTATIONS PLC

06...OUR ESTATES AND FACTORIES

07...CHAIRMAN'S MESSAGE

11...MANAGING DIRECTOR/CEO'S REVIEW

Governance

16...BOARD OF DIRECTORS

20...CORPORATE MANAGEMENT TEAM

21...CORPORATE GOVERNANCE REPORT

33...RISK MANAGEMENT

43...ANNUAL REPORT OF THE BOARD OF DIRECTORS

46...REPORT OF THE AUDIT COMMITTEE

48...REPORT OF THE REMUNERATION AND NOMINATIONS COMMITTEE

49...REPORT OF THE RELATED

PARTY TRANSACTIONS REVIEW COMMITTEE

50...FINANCIAL CALENDAR

Financial Reports

52...STATEMENTS OF DIRECTORS' RESPONSIBILITY

53...MANAGING DIRECTOR'S AND CHIEF FINANCIAL OFFICER'S RESPONSIBILITY STATEMENT

54...INDEPENDENT AUDITOR'S REPORT

59...STATEMENT OF PROFIT OR LOSS

60...STATEMENT OF COMPREHENSIVE INCOME

61...STATEMENT OF FINANCIAL POSITION

63...CONSOLIDATED STATEMENT

OF CHANGES IN EQUITY

64...COMPANY STATEMENT OF

CHANGES IN EQUITY 65...STATEMENT OF CASH FLOWS

66...NOTES TO THE FINANCIAL STATEMENTS

Supplementary

Information

138...VALUE ADDED STATEMENT

139...HISTORICAL FINANCIAL INFORMATION

142...ESTATE HECTARAGE STATEMENT

142...CROPS AND YIELDS

143...PERMANENT BUILDINGS ON ESTATES

144...SHAREHOLDERS' AND INVESTORS' INFORMATION

146...GLOSSARY

148...NOTICE OF MEETING

149...FORM OF PROXY

150...INSTRUCTION AS TO COMPLETION OF THE FORM OF PROXY

151...CORPORATE INFORMATION

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HATTON PLANTATIONS PLC • ANNUAL REPORT 2021 | 22

ABOUT THIS REPORT

OVERVIEW

We are pleased to present our fifth Annual Report of Hatton Plantations PLC for the twelve months financial period ended 31st March 2022, which has been prepared to provide financial performance and position and the Company's engagements to fulfil its responsibilities to its diverse stakeholders including shareholders in the context of the surrounding economic, social and environmental conditions. This report discusses in different sections how we propose to sail through many challenges ahead and potential growth into the future to meet stakeholders' expectations.

CONTENT AND REPORTING SCOPE AND BOUNDARY

This report covers our tea plantations, their factory processing operations and Head Office management functions across thirteen (13) tea estates and one tea reprocessing operation at Hatton, Watawala and Lindula located in high and medium growing regions in the upcountry with its Head Office in Colombo. The Company operates its production of tea in eleven(11) factories and one tea re-processing factory.

This Annual Report provides an accurate and balanced review of the Company's financial, social and environmental performance within the context of its strategy, risks and opportunities and long-term prospects. The Report covers the operations of

the Company for the year ended 31st March 2022 and where relevant is supported by comparable data relating to the previous period information pertaining to the year ended 31st March

2021. Unless otherwise mentioned, the boundary for all material aspects reported in this Report is the Company.

There has been no restatement of information other than the valuation of Consumable Biological Assets from the previous Annual Report. We elaborate our engagements, responsibilities and compliances through Audited financial position and performance, Chairman's Message, Managing Director's Review,

Profile of the Board of Directors, Annual Responsibility Statement of Directors, Corporate Governance, Risk Management, and responsibility statements of sub committees.

ASSURANCE AND COMPLIANCE

Messrs. PricewaterhouseCoopers, Chartered Accountants has issued an independent report on the Financial Statement of the Company and the Consolidated Group for the period ended 31st March 2022.

The Financial Statements of the Company has been prepared in accordance with the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 and the Sri Lanka Accounting Standards which comprise Sri Lanka Financial Reporting Standards (SLFRS) and Sri Lanka Accounting Standards (LKAS). The Company has followed additional guidelines as established by the Companies Act No. 07 of 2007.

For governance-related matters, where applicable, we voluntarily comply with the Code of Best Practice on Corporate Governance issued jointly by The Institute of Chartered Accountants of Sri Lanka and the Securities and Exchange Commission of Sri Lanka. The Report also complies with the listing requirements of the Colombo Stock Exchange.

The Board believes that the Annual Report of Hatton Plantations PLC has been prepared in accordance with best practices in reporting. The information is scrutinized to ensure reliability and is a fair representation of its performance in the year under review and prospects. The Board approved the Annual Report 2021/22 on 30th August 2022 for release to shareholders.

QUERIES

We welcome your comments or inquiries on this Annual Report 2021/22. Please contact:

Mrs. Annemarie Outschoorn - Chief Financial Officer

Phone: [phone]

email: [e-mail]

SUPPLEMENTARY INFORMATION FINANCIAL REPORTS GOVERNANCE LEADERSHIP AND ACHIEVEMENTS