Lanka Ventures : Annual Report for FY 21/22

Lanka Ventures PLC

2021 / 2022

Annual Report

	Contents
	Page 01 Financial Highlights
	Page 02 Board of Directors
	Page 04 Chairman's Message
	Page 05 Management Discussion and Analysis
	Page 12 Annual Report of the Board of Directors
	Page 15 Corporate Governance
	Page 19 Audit Committee Report
	Page 20 Related Party Transactions Review Committee Report
	Page 21 Financial Reports
	Page 22 Statement of Directors' Report
	Page 23 Independent Auditor's Report
	Page 26 Statement of Prot or Loss and Other Comprehensive Income
	Page 27 Statement of Financial Position
	Page 28 Statement of Changes in Equity
	Page 30 Statement of Cash Flows
	Page 31 Notes to the Financial Statements
	Page 76 Ten Year Summary
	Page 77 Information to Shareholders
	Page 79 Notice of Meeting
	Enclosed - Form of Proxy
	Back Inner Cover - Corporate Information
Vision	Our vision is to be the leading equity provider
	in Sri Lanka to enterprizes seeking trusted
	partnerships or strategic alliances based on
	shared values.
Mission	Our mission is to actively seek and invest
	in business ventures oering the best risk/
	return trade o with the view to maximizing
	shareholder value.

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FINANCIAL HIGHLIGHTS

For the year ended 31 March	2022	2021
Total Income (LKR million)	451	360
Share of Profit from Associates (LKR million)	890	763
Finance cost (LKR million)	288	254
Tax (LKR million)	170	49
Profit / (Loss) after Tax (LKR million)	683	646
Shareholders' Funds (LKR million)	4,758	2,946
(Stated Capital and Reserves)
Redeemable Preference Shares (LKR million)	-	95
Interest Bearing Borrowings (LKR million)	3,465	2,941
Total Assets (LKR million)	12,113	8,486
Earnings per Share (LKR)	6.67	6.38
Dividend per Share (LKR)	-	1.50
Net Assets per Share (LKR)	95.16	58.93
Market Price per Share (LKR)	45.00	48.60
Ratios
Return on Equity	8.66%	11.58%
Interest Cover Ratio (times)	3.96	3.74
Dividend Payout	-	23.51%

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BOARD OF DIRECTORS

1. Mr. Damith Pallewatte

Mr. Damith Pallewatte is the Deputy General Manager

- Wholesale Banking Group of Hatton National Bank PLC (HNB), who counts 27 years of experience in the banking sector and held many senior positions with 03 leading local banks. Previously held positions of Deputy General Manager Risk/Chief Risk Officer (CRO)/ Chief Information Security Officer (CISO) at HNB. Prior to joining HNB he was the Chief Risk Officer of Nations Trust Bank PLC.

Mr. Pallewatte is the Chairman of LVL Energy Fund PLC. He is also a Director of Acuity Partners (Private) Limited, Acuity Securities (Private) Limited and an alternate Director for Credit Information Bureau of Sri Lanka. He was a past president of Association of Banking Sector Risk Professionals and had been appointed as a banking industry representative by Sri Lanka Bankers' Association to the committee established on the proposed Financial Assets Management Agency.

Mr. Pallewatte holds a MBA from Postgraduate Institute of Management (PIM), University of Sri Jayewardenepura and earned his B.Sc. Management (Hons) degree from University of London, London School of Economics. Mr. Pallewatte has been admitted as a Certified Financial Risk Manager (FRM) by Global Association of Risk Professionals and a holder of "Sustainability and Climate Risk" (SCR) certificate from GARP. He is also an ACI Operations Certificate Holder from Financial Markets Association, France, a Fellow Member of Chartered Institute of Management Accountants, UK (FCMA) and Chartered Global Management Accountant (CGMA).

Mr. Pallewatte was appointed to MESANA (Middle East South Asia and North Africa), Regional Advisory Panel of Association of International Certified Professional Accountants (AICPA) for year 2020/21 by CIMA and was elected as Vice Chairman of CIMA Country Network Committee (CNC), Sri Lanka in 2021/22. He is appointed as the Chair of CIMA South Asia Committee for 2022/23.

1. Mr. Thimal Perera
   Mr. Thimal Perera is the Chief Executive Officer (CEO) of DFCC Bank PLC. He functioned as the Deputy Chief Executive Officer of the Bank prior to his appointment as the CEO and was appointed to the DFCC Board in July 2019.
   He has held several senior positions in the banking sector and has over two decades of experience in the financial services and banking sector, both locally and internationally having been with the HSBC Group, both in Sri Lanka and overseas, the Commercial Bank of Qatar and Barclays Bank PLC, UAE. He was the Deputy General Manager of Hatton National Bank where he guided the retail and SME banking sector.
   While at HNB he also served as a board member of HNB Assurance PLC, HNB General Insurance Ltd and HNB Finance Ltd where he was also the Chairman of the Board Audit Committee. He is also the Chairman of Synapsys Limited, Acuity Partners Limited, DFCC Consulting (Private) Limited and serves as a Director of Lanka Clear (Private) Limited and LVL Energy Fund PLC.
   Mr. Perera is a member of the Institute of Chartered Accountants of Sri Lanka and a passed finalist of the Chartered Institute of Management Accountants, UK.
2. Mr. Ananda Munasinghe
   Mr. Ananda Munasinghe has had over three-decades of experience in the manufacturing industry in Sri Lanka. He was the former Director/General Manager of Acme Printing and Packaging Limited. He has also functioned as Works Manager at State Fertilizer Manufacturing Corporation and the Senior Instrument Engineer at Ceylon Petroleum Corporation's Refinery. He has held the position of President, Sri Lanka Energy Managers Association and the Sri Lanka Institute of Packaging in the past. He serves as a Director of LVL Energy Fund PLC.
   Mr. Munasinghe is an Engineering Graduate of the University of Ceylon, Peradeniya and holds a Master's Degree in Business Administration from the University of Sri Jayewardenepura. He also holds Post Graduate Diplomas in Production Engineering and Engineering

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Design from Colchester College of Technology, England and Enfield College of Technology, England respectively.

1. Mr. Ray Abeywardena
   Mr. Ray Abeywardena is the Managing Director/Group Chief Executive Officer of Acuity Partners (Private) Limited. He has been associated with Sri Lanka's capital markets for over 37 years, primarily as a Stockbroker and since 2009 as an Investment Banker.
   Mr. Abeywardena is the Chairman of Acuity Stockbrokers (Private) Limited and Acuity Securities Limited. He is a Director of Guardian Acuity Asset Management Limited, LVL Energy Fund PLC, Colombo Stock Exchange and Central Depository Systems (Private) Limited.
   Mr. Abeywardena is a member of the Chartered Institute of Marketing, (UK) and holds a Master's Degree in Business Administration from the University of Wales.
2. Mr. Nihal Kekulawala
   Mr. Nihal Kekulawala is a Director of Pan Asia Banking Corporation PLC, Lanka Walltile PLC, AMW Capital Leasing and Finance PLC, Lanka Ceramic PLC, Softlogic Holdings PLC and LVL Energy Fund PLC. He was responsible for setting up Pan Oceanic Bank in Solomon Island and functioned as its Director/Chief Executive Officer between June 2014 and June 2016. Prior to that he held senior management positions at Hatton National Bank PLC over a period of 20 years and at the time of retirement in December 2012 held the position of Senior Deputy General Manager - Strategy and Compliance.
   Mr. Kekulawala is a Fellow of the Institute of Chartered Accountants, England & Wales and Fellow of the Institute of Chartered Accountants, Sri Lanka. He is also a Fellow of the Chartered Institute of Bankers, England. He holds a Master of Business Administration Degree from the University of Manchester, England.

BOARD OF DIRECTORS

1. Mr. Ravi Dassanayake
   Mr. Dassanayake is the Vice President, Strategic Investments and Subsidiaries of DFCC Bank PLC. He counts over 28 years of experience in banking, accounting and auditing, consulting and advisory services.
   Mr. Dassanayake is a Director of several subsidiaries and associate companies of DFCC and is also a member of several management committees. He has held positions as the Head of Budgeting and Planning of DFCC Vardhana Bank PLC, Chief Executive Officer and Chief Risk and Operations Officer of Lankaputhra Development Bank and Partner, Audit Assurance and Consulting of BDO Partners Sri Lanka. He serves as a Director of Lanka Industrial Estates Limited, Lindel Industrial Laboratories Limited, DFCC Consulting (Private) Limited, Acuity Securities Limited, National Asset Management Limited and LVL Energy Fund PLC.
   He holds his Masters from PIM, University of Sri Jayawardenepura and his first degree in Accountancy from the same university. He is also a Fellow member of CA Sri Lanka and an Associate of CIMA, UK.
2. Mr. Rajive Dissanayake
   Mr. Rajive Dissanayake counts nearly two decades of experience covering banking sector and capital markets. He currently serves as the Chief Financial Officer of Hatton National Bank PLC. In addition to being on the Board of Lanka Ventures PLC, Mr. Dissanayake is also a Director of LVL Energy Fund PLC, HNB Finance PLC and Acuity Partners (Private) Limited.
   Mr. Dissanayake is a CFA Charter holder, a Fellow Member of the Chartered Institute of Management Accountants (UK) and a Chartered Global Management Accountant. He also holds a Bachelor's degree in Business Administration from the University of Colombo.

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