Richard Pieris and : Annual Report For 2021-2022 Richard Pieris and Company PLC

Richard Pieris & Company PLC

Annual Report 2021/2022

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Touching Lives

RICHARD PIERIS & COMPANY PLC  |  ANNUAL REPORT 2021/2022

Contents

Our Core Business	2
Vision and Mission	4
Our History at a Glance	5
Financial Highlights	6
Chairman's Review	8
Board of Directors	11
Our Business	16
Corporate Social Responsibility	38
Financial Review	42
Risk Management	45
Statement of Value Added	48
Our People	49
Corporate Structure	50
Financial Information
Annual Report of the Board of Directors	60
Corporate Governance	64
Report of the Remuneration Committee	66
Report of the Audit Committee	67
Report of Related Party Transactions Review Committee	68
Statement of Directors' Responsibility	69
Independent Auditor's Report	70
Income Statement	74
Statement of Other Comprehensive Income	75
Statement of Financial Position	76
Statement of Changes in Equity	78
Statement of Cash Flows	79
Notes to the Financial Statements	81
Ten Year Summary	146
Share Information	148
Group Real Estate Portfolio	150
Glossary of Financial Terms	153
Notice of Meeting	155
Notes	156
Form of Proxy	159

Richard Pieris & Company PLC Annual Report 2021/2022

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Touching Lives

As a legend in Sri Lankan industry, our story has been filled with hard work, and a commitment to maintaining and elevating our standards. This year, we continue to place importance on the upliftment and empowerment that we provide; through our business and through our growth, which ensures that we continue to touch more lives as we have done over the last 90 years.

Our Core Business

Richard Pieris & Company PLC Annual Report 2021/2022

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RETAIL SECTOR

Our Retail sector offers a comprehensive range of Household, FMCG, Furniture and Electronics. Arpico retail stores also provide unimaginable convenience with bank service points, ATMs, credit card and mobile bill payment facilities for a truly one-stop shop experience.

TYRE SECTOR

Our Tyre sector has built up a reputation as the most high quality and reliable Tyre leader in Sri Lanka. As the largest in the business, we are committed to introducing tyre innovations to the market, Solid Tyres being the latest breakthrough innovation.

PLASTICS, FURNITURE & ELECTRONICS SECTOR Our Plastics segment has established its credentials as a household name in manufacturing and distributing Mattresses, Water tanks, Plastic furniture, Cushions and Sheets, Rigifoam products, PVC Pipes and Fittings, Vinyl mats, day-to-day consumer durables, as well as industrial and domestic Rubber products and Water pumps. The Furniture operation focuses on manufacturing Sofas, Panel furniture and Wooden furniture, and also retails Electronics for an end-to-end portfolio. The sector promotes the eco- friendly 'Green Gas' concept, advocating for a cleaner energy system.

Richard Pieris & Company PLC Annual Report 2021/2022

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RUBBER SECTOR Our Rubber sector manufactures Mattresses, Pillows, Latex Rings, Crutch tips, Shoe soles and Jar rings along with specialty items such as Fire Retardant mats, Electrical safety mats and Anti-static mats. This sector mainly caters to the export market while some products are sold locally. The Arpico Organic Latex Foam (certified by Global Organic Latex Standards), is an exciting product we launched most recently.

PLANTATION SECTOR Our Plantation sector, famed in Sri Lanka and overseas, has vast acres of land abundant with Tea, Rubber, Palm Oil, Coconut and Spices. We are also the largest Tea/Rubber producer in the country. Our brand of St. Clair's Tea is popular both internationally and domestically.

FINANCIAL SERVICES AND OTHER SECTOR Our Financial services sector, which inspires trust and confidence, spans Insurance, Finance, Stock Broking, Margin Trading and a Logistics arm. Clients can avail of a variety of products such as Fixed Deposits, Savings Deposit, Leasing, Hire Purchase, Term Loans and Islamic Finance, while the portfolio of the Insurance arm includes Endowment, Term Assurance, Education, Hospitalisation, Investment, Group Assurance and Loan protection plans.

RPC Logistics Limited, the Logistics arm of the Group, offers integrated logistics solutions both locally and internationally.