Furnishing Results - CSE

Sing

er (S

ri La

nka)

PLC

A

nnua

l Rep

ort 2

013

FurnishingResults

The Singer StrengthsSinger’s proud legacy as a state of the art business entity was not built on chance. Rather, it owes much to the development of six key strengths - our Brand, Distribution network, Credit facilities, Service regime, People power and cutting edge Systems. In tandem, these strengths have created a forward momentum across the Company that in turn has stimulated stakeholder interest and ‘movement’ around Singer and its products and services. It’s an enviable portfolio of strengths we possess, which �� celebrates these strengths as the force behind our enterprise and the wind beneath our achievements.

SINGER (Sri Lanka) is one of Sri Lanka’s largest and most

successful companies in the consumer durable sector.

Our multi-brand, multi-channel business model,

under the aegis of the world renowned SINGER name

has been a success story throughout and our portfolio

reads like a ‘Who’s Who’ of the world’s leading brands

and lines of business.

An emergent and dynamic ‘performer’ this year is our premium line of furniture, a key contributor to the overall performance of the Company during the year in review.

Functional, durable, aesthetic, plush, ultra-comfortable...

almost every term we use to describe our range of

furniture is applicable to the value the overall SINGER

portfolio and operating ethos adds to the lives of

customers everywhere.

We’re confident that business will ‘sit even

more comfortably’ in the years ahead as this line

develops further.

Our Vision��

Our MissionTo improve quality of life by providing comforts and conveniences at fair prices

ConsumersWe live up to the expectations of a responsible

organisation by contributing to the improvement in the quality of life of our customers through outstanding

products and services

Our Objectives

��leader in our Product and Market Segment

Provide our consumers with the Best Service and Shopping Experience in the Island

Provide our Consumers with Products of Latest ��

Develop our Employees to achieve their real Potential

Provide our Shareholders with steady Asset Growth and Return on Investment above our Industry Norm

Grow our Revenue ��rate above the Industry Norm

Environment��

ensure that the environment is protected and conserved for

future generations

CommunityWe conduct our business by conforming to the ethics of

our country and share the social responsibility of the less

fortunate

CompetitorsWe respect our competitors and

recognise their contribution to market value

SuppliersWe develop our suppliers to be partners in progress and we share our growth with them

EmployeesWe respect each other as individuals and encourage cross functional teamwork while providing opportunities for career development

ShareholdersWe provide a reasonable return while safeguarding their investment

Our Values

ContentsGroup at a Glance 04

Financial Highlights 05

Chairman’s Letter 06

!��"��#��$%��&�'�� 11

Board of Directors 18

*�� 24

Making Headway Amid Challenges 30

2013 Results in Perspective 52

Embracing the Future and Caring for Posterity 62

��*�� 100

Protecting Ourselves 134

Audit Committee Report 142

Remuneration Committee Report 143

Financial Reports

Annual Report of the Board of Directors on ��+��"�� 147

Statement of Directors’ Responsibility 152

Independent Auditors’ Report 153

Statement of Comprehensive Income 154

Statement of Financial Position 155

Statement of Changes in Equity 156

Statement of Cash Flows 158

Notes to the Financial Statements 159

A Decade in Perspective 204

Share Information 205

Subsidiary/Associate Companies 208

Distribution Network 209

Service Network and Fashion Academy Network 210

!��:�� 211

Notice of Annual General Meeting 212

Form of Proxy Enclose

CHAIRMAN’S LETTERSinger’s marketing model drives business through a series of product categories sold via multi faceted channels of distribution

GROUP CHIEF EXECUTIVE

OFFICER’S REVIEW��;��<��=�� good…we continued to improve our products, brands, channels and infrastructure.

FINANCIAL REPORTS 2013

EMBRACING THE FUTURE AND CARING FOR POSTERITY

P. 06

P. 11

P. 62

P. 145

4 Singer (Sri Lanka) PLCAnnual Report 2013

GROUP AT A GLANCE

27 Extension and 77 modernisation of outlets

Our Retail Presence

Jaffna

Mannar

ExtensionModernisation

Puttalam

Colombo

Kalutara

Matara

Hambanthota

Galle

Ampara

Batticaloa

Anuradhapura

Trincomalee

Vavuniya

Kilinochchi

Polonnaruwa

Kurunegala

Kegalle

Gampaha Nuwara Eliya

Matale

Kandy

Badulla

Monaragala

Ratnapura

On Line and Mobile Users

Over 500,000

Household Users

Over 4.5 million

��

Members1,637

Province Singer Mega

Singer Plus

Singer Homes

Satelliteshops

SISIL World

��

Central 2 21 1 17 6 47

Eastern – 16 – 2 1 19

Northern – 10 – 4 4 18

Southern – 25 1 19 5 50

Western 15 74 8 13 22 132

North Western – 19 1 10 4 34

North Central – 18 1 17 3 39

Uva – 12 1 10 3 26

Sabaragamuwa – 14 2 14 11 41

Total 17 209 15 106 59 406

CAGR of 13.2%

5Singer (Sri Lanka) PLCAnnual Report 2013

FINANCIAL HIGHLIGHTS

2013 2012 Increased/Rs. ’000 Rs. ’000 (Decreased)

%

Group Revenue - Net 25,485,561 25,441,494 0.2

Net Finance Cost 1,260,157 954,965 32.0

<��>?��@��#J��+��K��?Q��K��@ 1,283 5,778 (77.8)

�� 728,440 1,777,160 (59.0)

��T�� 522,066 1,215,710 (57.1)

��"��T�� 519,059 1,320,383 (60.7)

Stated Capital 626,048 626,048 0.0

Revenue Reserve 3,447,544 3,778,395 (8.8)

Revaluation Reserve 762,034 773,312 (1.5)

Non-Controlling Interest 395,902 357,054 10.9

��#J�� 5,359,975 5,613,235 (4.5)

Property, Plant & Equipment - Net 2,505,355 2,151,208 16.5

Investments 70,287 69,725 0.8

Net-Current Assets 2,972,687 945,444 214.4

Gross Dividends* 313,024 751,258 (58.3)

Dividend per Share - Rs. 2.50 6.00 (58.3)

Dividend Payout Ratio - % 67.74 74.40 (8.9)

Earnings per Share - Rs. 3.69 9.26 (60.2)

Price Earnings Ratio - times 36.93 12.45 196.6

Net Assets per Share - Rs. 39.65 41.98 (5.6)

Market Value per Share - 31st December - Rs. 89.00 102.30 (13.0)

Q��K��Q��;�[ 2.05 4.78 (57.1)

Return on Average Net Assets/Equity - % 9.51 22.93 (58.5)

Debt Ratio - % 144.10 74.03 94.7

Gearing Ratio 0.28 0.36 (21.6)

Interest Cover 1.41 2.27 (37.7)

Dividend Cover 0.96 1.37 (29.9)

Current Ratio 1.23 1.07 14.3

Acid Ratio 0.83 0.74 11.8

* Includes authorised Final Dividends of the Company.


CHAIRMAN’S LETTER

Dear Shareholders,

The year dawned with hope that the post war peace dividend had more room to stretch before growth settles down to a leisured pace. The economy responded by recording a GDP growth of 7.2% (estd). The perpetual ��]^[� ��the ‘invisibles’, worker remittances and tourist earnings grew double digit, the latter exponentially by 35%, leading up to a rare balance of payments surplus of US$ 1 billion with ��%��`<j�z�{��|�equivalent to 4.5 months of imports. While policy interest rates declined quarterly, response to monitory stimulus was lukewarm. Loans and advances from the banking sector grew by a meagre 8.8% (21% in 2012) meanwhile deposits and �� ]}[�?]~[��{�]{@��‘wait and see’ attitude from the investor public. The lagging �� |� �� from the retail sector.

Value added tax (VAT) previously levied for manufactured goods and imports was extended up the supply chain to retail from 2013. VAT is never a facilitating tax and impacts price levels and buyer sentiment during an introductory period.

<�� income declined. Slow holiday sales in April and December left behind unsold inventories. Incremental investment deemed necessary to retain an edge over competitiveness ��

Singer’s marketing model drives business through a series of product categories sold via multi faceted channels of distribution.

Across Asia, Singer’s No. 1 category is White Goods, accounting for close to 1/3rd of all revenue. Two major product lines in this category ‘stumbled’ during the year �� :��resulting negative media publicity may have resulted in consumers postponing their buying decision the consequence of which was market deceleration. As market leader we need to respond to the reasons for a category such as white goods, with low to medium penetration, �� ?^�[��{�]{@��{��eco-friendly refrigerators launched recently, Singer brings a fresh outlook to restore the pristine growth module that was before.

The most frequently asked question of us is ‘what is the share of sewing machine business out of your total revenue’. �� ^��[��times. Increase in demand for portables follows rapid ��Artisan models grew with home sewing majoring onto small cottage industries. ‘Singer Worldwide’ has been able to extend the life cycle of the traditional machine through serial innovations, retaining leadership since its founding in 1851, no doubt an unique achievement.

The category success story comes from Digital Media (desktops, laptops, tablets, ‘smart’ and ‘feature’ phones, cameras, etc.) where we have achieved recent sharp growth. Using a tri-brand approach led by ‘Singer’, sales have rapidly ascended, driving us to be amongst the leadership in laptop space.

The mobile market is moving from ‘Feature’ to ‘Smart Phones’. Singer distributes global leader brands ‘Samsung’ and ‘Huawei’ and will exploit the ‘overhead space’ via multiple channels. While a slowdown for smart phones is evident in developed markets, it’s quite the contrary in emerging markets.

Two reports back, I made a plea for greater focus on furniture. Furniture is the category that blends the ��|�� in every room of the modern home. Singer is the style and quality leader and we predict that as distribution unfolds island-wide, we are destined to be the national category leader as well.

Space does not permit me to comment on all major categories, therefore kindly refer to C.E.O’s report for further information in this area.

Mega channel sales surpassed the Rs. 2 billion mark and is now the fastest growing among our multiple chain store applications. Singer introduced modern retail to Sri Lanka ��*��<�� |� <��=��&��&��]^^~��of our stores to 17 most major urban centres are now coveraged. Mega Stores enable aggressive exposition of a ��;�� shop in an ambient environment and is the preferred choice of the A & B socioeconomic category of customers. Vision of the management of that time to stay ahead of the ‘game’ is seen to pay dividends now.

Singer’s marketing model drives business through a series of product categories sold via multi faceted channels of distribution



Chairman’s Letter

Singer is the style and quality leader and we predict that as distribution unfolds island-wide, we are destined to be the national category leader as well


Chairman’s Letter

The traditional ‘Singer Plus’ channel is troubled by the rapid expansion of similar competitive formats, riding on new growth opportunities opening up since the end of the ‘war’. We need to breakaway from the ‘me too’ mould that is fast making the overall channel appear generic and ��competition on brands, categories, service, width, customer support, almost everything. Once again space does not permit me to address all major channels in this letter though each of these formats collectively enables us to network the entire 4.5 million households within the fold of consumerism (estimated No. of total households 2013 = 5.3 million) and are of equal importance to the macro environment.

If a competitor was on the look out for a ‘creneau’ to challenge Singer’s market leadership it would not be in Distribution. Singer’s awesome network reaches every corner of the island and the multiple impressions of distribution is unique in that it serves every strata of society by the manner of its structure, exemplifying the reach needed to sustain leadership over time. Expansion is perpetual and we added 27 new stores amongst the four retail channels. Distribution in the Digital Media category (laptops, tablets, smart and feature phones, cameras, etc.) is strident through distributors who are resourcing up to 1,300 dealers island-wide.

A question of asked of us, sometimes by shareholders, is ‘what impact does sports sponsorship have on our brand equity’. A case in point is Singer’s sponsorship of schools rugby.

�� {�� participation from 24 schools. Today after 10 years, the numbers have increased dramatically to 77. This is possibly due to Singer simultaneously supporting ‘start up’ schools to stay on their feet. Once a lacklustre event, today it is the most popular domestic sports tournament in the country ��^�� crowds. Teams are divided into 3 divisions with each division further divided into 3 groups. Brand visibility is widespread for over 4 months at each venue.

Our brand is closely associated with the growing popularity and success of rugby where Sri Lanka currently ranks Q��+�|�� Taking a cue from rugby, Singer now sponsors schools cricket, supporting the youth market our future customer ‘milieu’. Consistent sports sponsorships build brand equity and no doubt help keep our name on ‘top of the mind’ for brand recall.

Arising from the country budget for 2014, the Government ��|�encompassing Banks and Finance Institutions. This was aimed at mitigating the growing weakness in the Non-Bank Financial Institution (NBFI) sector comprising 58 such institutions, accounting for 7% of total assets of the entire ��Q� �� managed Finance Companies is a regular headline in the national media. Originating from this background, the Central Bank of Sri Lanka (CBSL) has proposed a master ��|� ��NBFI’s to 20. Singer Finance (Lanka) PLC is categorised in �+&��]��]^�Q�:K&|��composition reporting a high degree of compliance with CBSL and is expected to merge with on or more of category ‘B’ NBFI’s.

Singer Finance (Lanka) PLC (SFL), 80.4% owned by the parent Singer (Sri Lanka) PLC, holds a sound track record, �� since listed on the Colombo Stock Exchange. SFL derives its strength from the enormously strong brand equity of its parent and the ability to understand and work successfully with a cross section of our nation’s population through its deepening branch and window network, reaching out to the ��<��!��]��<��=��|��Hire Purchase Instalment plans.

Management is in search of a suitable compatible partner to merge or acquire. We are not yet in a position to indicate with whom or when this will occur.

Appreciation

It is with sadness that I record the passing of Dr. G.C.B. Wijeyesinghe, who served on the Board and Chaired the Board Audit Committee and Remuneration Committee for 18 years. His vast experience in the business sector and his profound knowledge in the sphere of controls and auditing was of immense value to the company during its most important growth phase. I wish to take this opportunity to record the contribution of all Board Members during the year reviewed. Further to thank the management team and �� sector leadership.

Sincerely,

Hemaka AmarasuriyaChairman

28th February 2014


The medium-term prospects for Sri Lanka

will be very good…we continued to

improve our products, brands, channels and

infrastructure


GROUP CHIEF EXECUTIVE OFFICER’S REVIEW

Dear Shareholders,

The Environment

��%��challenging in 2013 - a trend that we saw from second half ��{�]{|� �� %�� electricity charges in the current year on top of the increase last year.

Because of the challenging environment, new players did not enter the market. Instead some existing players left the market.

On the technology front the environment continued to have rapid changes, especially in the electronics and digital media sectors. LCD televisions became an obsolete product replaced by LED televisions. Within the LED category we saw the emergence of 3D televisions, Smart televisions ��`��K��phone sector, the feature phones are rapidly losing ground to the Smartphones.

It was good to note an improvement in the business environment in the last quarter where revenue grew by 3% compared to a decline in the prior three quarters.

Our Strategies and Actions

Our Strategies and Actions during the year were as follows:

a. We had to take defensive measures to counter the adverse business environment.

�� ;��<��=�� |� ��being ready for the medium-term growth. As a result, we continued to improve our products, brands, channels and infrastructure. All these are elaborated below.

�� |�� ;��times and we strengthened ourselves by making use of these opportunities.

Defensive Measures

�� %��|��culture at Singer supplemented by an online real time ERP system, use of call centre for collections, use of reminders by SMS for collections together with traditional collection drives ensured that our arrears were well under control. ��"��ensure that they did not get into arrears.

�� inventory. During the year, the Company had several clearance sales and programmes to ensure that aging and obsolete inventory were cleared.

While the Company embarked to reduce costs in some areas, a high level of advertising and promotions had to be done ��%��"��had a long-term debenture both to reduce interest cost and to strengthen the Financial Position.

K��<�� %��

��%��|��of arrears, control of aging inventory as well as sales were better than our peers and thereby we emerged stronger in our business environment.

Products, Brands and Sourcing

We continued to position ourselves to be the preferred consumer durable retailer/wholesaler to meet the requirements of the customers.

One of our thrust sectors was the Digital Media sector ��|��|��|��revenue grew by 80% in 2013, on top of a 30% growth last ��*��;� ��;��products segment to become the third largest segment in the Company.

Singer had already established itself as a leading player in �� <��<��and Lenovo brands for laptops further strengthened our ��[��Within that the laptop sales increased by 115%.

Our partnership with Huawei resulted in Huawei becoming the second largest Smartphone brand in Sri Lanka. At the same time Singer is likely to be the second largest seller of Smartphones in Sri Lanka. In the second half we introduced the Intex brand of mobile phones, mainly for lower priced phones. During the year, Singer was also appointed a re-seller of Apple. We now have two shops with Apple product corners and expect to roll out to more shops during the year. Our mobile phone unit sales increased by 386% during the year and Smartphone unit sales increased 15 times.


Challenging environment, brought new opportunities…

��!��"��#��$


!��"��#��$%��&�'��

+��:�� ^[��{�]�� distribution, introduction of new models and further improvements to our manufacturing.

New brands introduced in 2013, apart from those mentioned above were Beko, Grundig and Sharp brands. Beko is the third largest white goods brand in Europe. In a move to rationalise brands, the Company gave up some brands, which did not live up to expectations.

��<��=��#��|� �� array of our products and brands to the public, was held once again at the BMICH in Colombo. In 2014, we plan to have similar exhibitions outside of Colombo.

By using our strength and breath in sourcing of products, we were able to supply high quality products at very reasonable prices. We continued to introduce new product �� |� head-phones and data devices for the Digital Media sector, scales and woodworking machines for the agro sector. We continued to bring the latest models and latest technology within each product line.

�� ]][��decrease of sales of refrigerators and washing machines. �� We introduced the GEO range of refrigerator under Singer Brand and the ECO range of refrigerators under the SISIL ��'��+��recommended for refrigerators. It is environment friendly and saves electricity for the consumers. Most refrigerators marketed in Asia doesn’t use this gas - therefore, technologically we are ahead of all of them. Sales of fans and air conditioners showed an improvement over the prior year.

��}[��`��of televisions, DVD’s and home theatres decreased, while audio products increased.

�� ;��by 11%, and kitchen related products segment revenue ��}[�� revenue of transportation segment while agro segment increased by 6%.

Channels and Distribution

Singer continued to strengthen its Distribution channels.

��*�� year blossomed out this year giving a growth of 602% . �� a thousand small outlets selling mobile phones, accessories and connections.

��"��+��"�� new channel had moderate growth, but had won several contracts and is expected to do very well in 2014.

Singer Plus channel opened 13 new outlets including Satellite showrooms, upgraded 13 Satellite showrooms to Singer Plus showrooms. SISIL World channel opened 8 new showrooms, Mega channel opened 2 new showrooms, Singer Homes opened one new showroom. In addition, 2 Agro shops and a ��*�� of shops of Singer past the 400 mark.

��"��z��upgrades, new shops and renovations a total of 77 new shops were provided with a complete uplift to reach the high merchandising standards practiced by the Company. �� future as well.

��|� �� that existed previously and launched a new loyalty programme which is linked to our ERP system. We plan �� to be on par with a world class loyalty programme.

�� with addition of new dealers. Within Wholesale channel, we introduced van sales for small appliances and fans. ��

We also introduced a furniture wholesale channel. In 2013, �� appliances and furniture wholesale channels contributed Rs. 16 million and is expected to grow steeply in 2014.


Financial Services and Credit

Under Financial Services, customers can pay utility bills, credit card bills and insurance premiums at Singer shops and also collect funds remitted through Western Union and upload funds for mobile cash. In December 2013, we also commenced withdrawal of mobile cash. During the ��|��{�[|� ��number of transactions grew by 11%. It is noteworthy that an average of 205,000 transactions took place in our shops each month.

��"�� payment plans through its own, through Singer Finance, ��credit and debit cards.

Human Resources

��"��Company had very good industrial relations during the ��"��employees and their families and increased the training for ��

After Sales Service

<��+��<��$��consumers in Sri Lanka. A new Regional Service Centre was ��+��'��<��"��will be opened in Badulla in 2014. During the year, we took steps to further improve our service by using the call centre and by using special pick-up/delivery service in rural areas.

Manufacturing

��"��+��and Furniture factories. Production of sofas increased by 27%, solid furniture by 25% and modular furniture by 54%. ��[�� |�� manufacturing division exported sofas to Singer Associate Companies in Pakistan and Bangladesh and introduced High Gloss Acrylic Panels for pantry cupboards.

ERP System

We continue to make enhancements to the ERP system. ��;��information, so that corrective action can be taken without any delay.

K��{�]{|� ��#'��<*<|��by having customer receipts sent via SMS and then to send out reminders to customers via SMS on their instalments ��;��;��;��During the year, an average of 350,000 SMS were monthly sent to customers.

During 2013, we commenced sending marketing and promotional news to our customer data base. Outside of telecommunication companies, Singer probably has the largest communication by SMS to its customers. We send SMS to around 900,000 customers.

Singer Finance (Lanka) PLC

��"��&�<��<��:��?=��@��="�continued to improve its business volumes. Its revenue ��]][� ��"��K�� {}[��{�]��{z[�� <��:��?=��@��="��{�]��|��|�Q�� |�Dambulla, Giriulla and Medawachchiya to branches during the year.

��"��operations at the Singer Mega outlets and increased its focus on consumer durable group sales with a view to converge on the strengths of the Parent Company.

��"�� its branches in July 2013. In addition to the children’s savings accounts branded ‘Muthu’, the Company commenced introduction of normal savings accounts too for its customers.

!��"��#��$%��&�'��


CSR

Singer believes that it is our duty to safeguard the environment and to carry out Social Responsibility �� pages 62 to 92. Singer is very proud to continue to be in the ��"��"��

The Financial Results for the Year

While I would not go into details, as this is given in the 2013 ��|��this review.

��!�� '��{}�}��{[�growth, while the Company revenue was Rs. 23.7 billion, a 0.6% decline. Although revenue declined by 0.6%, gross sales revenue increased by 1.7%. However, as the retail ��+��?�+�@|��+��|�� +�|��

Selling and administration expenses increased by 13% due ��|��][��"��{[��!��these costs versus a marginal growth in the top line lead to ��

��!��&��"��K�� was Rs. 519 million, which was a decline of 61% when �� K��"��|��Comprehensive Income for the year was Rs. 299 million which was a decline of 74%.

!��"��#��$%��&�'��

Conclusion

K� ��their contribution and commitment in challenging market �� ranks and all divisions and departments in the Group.

K��"��<��?<��=��@��="� ��"��#��$%��<��+��=��continued guidance, support and the encouragement in overcoming challenges.

I also thank the Board of Directors of the Company, and the Chairman and Board of Directors of Singer Asia Ltd. for their valuable support and guidance.

I also thank all our shareholders for their continued trust in the Board of Directors and the Management of the Company.

Sincerely,

Asoka Pieris��

28th February 2014

BED ROOM SUITES

Between sleeping and waking lies the Singer bed. From a warm welcome to its comfortable contours through a restful night to waking up refreshed and energised, the whole process is as close to nature as can be…with Singer.

Bostan Double Bed Model No. - WF-BOS-BED

OCEAN Double Bed Model No. - WFI-OCEAN

%��$�&��'�*Model No. - LF-WIN-BED

Preston Bed *��Q��;��:;�'#<�$Q;�#��

Tuscan Double Bed *��Q��;��:=;�`<��

Teak Double Bed*��Q��;��:;�#+�;��


THEME PAGE - 1


BOARD OF DIRECTORS

Hemaka Amarasuriya

��+��

��<��

Peter O’Donnell

*��

John J. Hyun

Priyath Salgado

Gavin J. Walker Asoka Pieris

��<��

��!��

+�"�*��K��



Board of Directors


��<��?<��=��@��="��]��+��|�]^z^��Appointed Deputy Managing Director on 24th August 1983, Country Manager Singer Singapore 2004, Managing Director on 1st January 1985, Chairman on 1st November 1986. Appointed as the Non-Executive Chairman on 1st July 2010.

Chairman and former Managing Director of the Singer Group of Companies operating in Sri Lanka and former Chairman of National Development Bank PLC. Mr. Amarasuriya holds Directorates in Bata Shoe Company of Ceylon Ltd., Bata #��?��@�=��|��Q=�'��Q�� ?��@�=��|�+"=�"��="|�"��*��="|�*��"��?��@�=��|�=��+��PLC and ACME Printing & Packaging PLC. He is a former Vice-President of Retail Holdings Ltd., USA and of Singer Asia Ltd.

Founder President of the Industrial Association of Sri Lanka. Currently, Chairman of Regional Industrial Service "��?'K<"@|�<��*��Industrial Development and Commerce. Former Chairman of Employers’ Federation of Ceylon. Served on the Presidential ��:��<��|��<��and Exchange Commission and Advisory Committee on "��= ��

:�� K��"��+�� Sri Lanka, Fellow of the Chartered Institute of Management +��;�`�|�:�� "��K��*��;�`�|��*��*��<��Q� �T��`��|�`<+�� the founder President of the Chartered Institute of Marketing ?<��=��'��@��+��'��"��&� ��Retail Dealership, Award for his contribution to retailing in Asia ��"��K��*��;�`��Business Leader and for his invaluable contribution to the marketing profession in initiating revolutionary changes in the consumer market.

Dr. Saman KelegamaDirector

��<��?<��=��@��="�� 1st June 2006.

"��>��<��:��?=��@��="|�� '��?=��@��="|�<�"�<��|�K��?K��@|�Q��#��+��?Q#�+@��*��*��;��K��*��?�K*@�

Executive Director, Institute of Policy Studies of Sri Lanka, Fellow, National Academy of Sciences in Sri Lanka, former President of Sri Lanka Economic Association and author of several publications on the economy of Sri Lanka.

��?#��@|�$��`��|�`��

Deshabandu Ajit JayaratneDirector

��<��?<��=��@��="�� 1st June 2006.

��<��K��?"��@��="|�+"=�"��="|�$��'��?"��@�=��|�"��*��="|�"��Fort Land & Building Co. PLC, Colombo Fort Investment PLC, "��:��K��="|�"*��="|� T��+��="|�*��"��=��=��="�

Former Chairman of Colombo Stock Exchange and Ceylon Chamber of Commerce and Former High Commissioner of Sri Lanka to Singapore.

��<��?#��@|�`��<��|�:�� K��"��+��<��=��|�Fellow of the Institute of Chartered Accountants of England and Wales.

Peter O’DonnellDirector

��<��?<��=��@��="�� 1st October 2003.

*��`"=�+��=��|�?��@|� ��|�<��+��=��|�$��|�<��Company Ltd.

Mr. O’Donnell is an alumnus of both Harvard College and Harvard Business School.

John J. HyunDirector

��<��?<��=��@��="��]��{�]]�

John Hyun is a Managing Director of UCL Asia, one of ��&�� liquid capital.

*��]~��&�+��#J��<��establish its Mergers, Acquisitions and Advisory Group. ��]^^^� ��K��+�|��Asian operations of Investor AB, the Swedish industrial Holding Group controlled by the Wallenberg family. *��`"=��{��

*��+��K��?��@� ��=��|��"<�=��|�<��:��?=��@��="�� ;��+�� the University of Chicago.


Board of Directors

Gavin J. WalkerDirector

��<��?<��=��@��="�� 1st November 2005.

*��"��#��$%��Singer Asia Ltd. and was appointed to this position in August {��}��"��|�*��%��*��"��#��$%��J��`��South Africa.

*��|��"��#��$%��;��retailer of electrical appliances and furniture with operations ��]��+��+��?��<KQ!#'��@��*��Board of a number of Singer Asia Subsidiaries.

Asoka Pieris��

��<��?<��=��@��="|��]��+��2004. Appointed as Managing Director and Group Chief #��$%��<��!��"�� 1st July 2010.

��<��K��?"��@��="|�'��?=��@��="|� '��?=��@�=��|��'��+��?��@�=��Equity Investments Lanka Ltd. Vice President of Singer Asia Ltd. and Retail Holdings N.V.

Prior to the present appointment, Mr. Asoka Pieris was Chief :��$%��<��+��=��|��"��'��Holdings N.V.

Associate Member of the Institute of Chartered Accountants of Sri Lanka. Fellow Member of the Chartered Institute of *��+��`��

V.G.K. VidyaratneAlternate Director

��<��?<��=��@��="�� 1st August 2004.

��'��?=��@��="|�<��K��?"��@��="|�'��+��?��@�=��'��=��=��!��Manager - Factories of the Singer Group, Sri Lanka.

��<��?��@��>*��Engineering, University of Peradeniya. MBA from the `��<��|�+��+�"��Engineer, Member of the Institute of Engineers, Sri Lanka.

Member of the Industrial Association of Sri Lanka and a Member of the National Labour Advisory Committee.

Mahesh WijewardeneAlternate Director

��<��?<��=��@��="�� 1st June 2006.

��*��"��<��?<��=��@��="�and Member of the Singer Asia Sourcing Committee.

Immediate Past Chairman of the Ceylon Chamber of Commerce - Import Section. Past Chairman of the Sri Lanka-China Business Council.

Holds a Masters in Business Administration from the `��<��|��!��Management.

Priyath SalgadoAlternate Director

��<��?<��=��@��="�� 15th May 2008.

:��<��?<��=��@��="�� <��:��?=��@��="�

Kumar SamarasingheAlternate Director

��<��?<��=��@��="�� 14th February 2011.

Director of Sales and Sewing Marketing of Singer ?<��=��@��="�

Holds a Diploma in Business Administration and Diploma in Marketing and an MBA from University of London.

A.C.M. IrzanSecretary to the Board (since 15th May 2008)

+��|�<��K��?"��@��="|�!��:��"��"��:��$%��'�� ?=��@��="��'��+��?��@�=��

"��<��<��K��?"��@��="��'��?=��@��="� ��J��'��+��?��@�=��

A Fellow of the Chartered Institute of Management +��|�`��*�+��*��University of Colombo, Sri Lanka.

DINNING SETS

��&��|�� &��<��

Cherry Dining Room SetModel No. - WFL-CHEDRS

Alpes Dinning Room Set Model No. - WFL-ALPES

Orient Dinning Room Set *��Q��;��:;$'K#Q�;�'<�

Diamond Dinning Room Set Model No. - WF-DIAMOND-DRS

Martini Dinning Room Set *��Q��;��:K*+'�KQK�;�<

Tania Dinning Room Set*��Q��;��:K;�+QK+�


MANAGEMENT TEAM

'�<�� A.S. Paranavitane S. Ramanathan P.L.D.C. Perera P.J.P. De Silva J. Mendis ��=��T��

H.A.P.S. Perera


R.C. De La Motte =�+�� C.A. Samarasinghe !�+�� A.P. Manoratne *��*��:�� +�`��

K�+�<��


*��

��!�<�� =��*�� "�=��'�� *�*�"�� !��!�� R.S. Singhabahu ��*�� H.V. Gomes

M. Mahesharatnam


*��

O.D. Amarathunga ��'�=�� +�'�Q�� H.S. Perera ��<��*�� N.L.D.W. Amarathunga

W.L.I.A Gunathilake ��*��

REFRIGERATORS

It’s like opening the door to a real life orchard. Singer refrigerators are renowned for keeping foods fresh and completely as nature intended them to be.

Samsung Side-By-Side Refrigerator Model No. - SMGRS21HZLMR

Refrigerator - 335L, Minus-Zero Cooling*��Q��;��;'��#`�

SISIL Eco Refrigerator Model No. - SL-ECO72

Hitachi Refrigerator Made In Japan Model No. - H RC62005

SISIL Eco Refrigerator Model No. - SL-ECO245

Side-By-Side Refrigerator Model No. - B-GNEV420X


Saga of Our Unabated Journey


MAKING HEADWAY AMID CHALLENGES

Our Brand Power

Over the years, SINGER has transformed into a marketing powerhouse with a wide range of product brands and service brands.

SINGER - Trusted ExcellenceBrand development has been a cornerstone of SINGER. ��"��standards in brand quality. Over the years SINGER has won ��T��+ ��^��|�"��T��+ ��T��|��Award, based on island-wide research carried out by AC Nielsen and the Sri Lanka Institute of Marketing.

SINGER brand has been stretched across many categories from the iconic sewing machine to consumer electronics, household appliances, air conditioners, furniture, agricultural implements, motor cycles, telephones and personal computers. Aggressive brand development, CSR activities and strong interactions with consumers enabled SINGER to achieve success over the years. SINGER has passionately promoted sports among our nation. Its close association with Sri Lanka Cricket, Schools Cricket League, Schools Rugby and the Bradby Shield is a testament to this ��+��<KQ!#'��artists in the likes of Sunil Perera, Bhathiya and Santhush to name a few.

��pre- and after-sales service to the Sri Lankan consumers across the social spectrum has enabled SINGER to uphold its ��#��&��

SISIL - The Cooling Specialist50 long years ago, SISIL� ��to be manufactured in Sri Lanka. In year 2000, SINGER purchased the SISIL brand. Since then, SINGER has leveraged the strength of the brand with a dominant share ��|�� of the washing machine market.

SISIL WORLD showrooms are spread island-wide while the SISIL brand promise remains its iconic status as the pioneering heritage brand of home grown refrigerators in Sri Lanka.

We operated in a challenging economic environment in 2013. High interest rates, impact of VAT on retail business and increased energy and ��*��+��*� �� +"��/�&��*�!��:� �� $ ��/�

We continued renovation and expansion of our �� $�;�$��*�� $�;��< �; /�� enabled us to optimise our business opportunities �� **�� *��$�� *��and agencies to our portfolio.

We continued to set a high standard in ‘Trusted ��"��< �; �� $�� *��*��*�� $��*�� *��*�$��$�*�� *�� *��$�;/

We also focused on further strengthening our customer relationships during the year. ��$��=�� *��+ ��+�� $ �� *�� /�

The team of employees has been the greatest asset of the Company. We are driven by a highly committed and capable team that faces the future $�� *�� +/�� *�� *��*��;��$��*��about customers, has enabled us to address the ��*�� *�� +� �*�� ;�� meaningful impact on people’s lives.

��:�$�� *��+��*�*�� $�� our stakeholders. The ensuing pages of the Report ��*�� *�� *��$�� activities during 2013.


SAMSUNG - Turn on TomorrowRecognised as number one electronic brand in the world, SAMSUNG is a global giant in Smartphones and LED televisions. SAMSUNG is rapidly gaining ground in Sri Lanka with high brand recognition in urban areas. It is the fastest growing brand within SINGER brand portfolio.

Whirlpool - The World’s Best HomemakerWhirlpool is an American brand which invented the washing machine. It is recognised as one of the largest appliance brands in the world. Whirlpool is another international brand ��<KQ!#'�

Hitachi - Inspire the NextHitachi is the largest electronic company in Japan and ��]�� "��manufactures refrigerators of the highest quality with innovative technologies.

HuaweiHuawei is globally recognised as a leader in cutting-edge consumer technology. With a brand promise to ‘make it possible’, Huawei is determined to empower consumers with devices that break new boundaries. Huawei products and solutions have been deployed in over 140 countries, serving ��;�� &��"��is committed to providing innovative and customised products, services and solutions to create long-term value �� ranked among the world’s best Smartphone manufacturers, having spearheaded customer-focused innovations. Huawei is poised to dominate the Smartphone industry by increasing investments made towards product design and improvements to software and user experience.

TCL - The Creative Life�"=�� "�� "=��gained the trust of Sri Lankan customers.

Philips - Sense and SimplicityPhilips remains a favourite brand, having invented several core technologies in electronics. Philips audio products were relaunched in 2012 and remain lucrative.


SkyworthQ��"�� the top ten Brands in the world. Singer was appointed as ��<��=�� =#��=#��

UNIC brand which was acquired in 2006 and is another house brand of the Company.

SINGER has an extensive range of brands in the kitchen �� |��|�*��|��|��'� ��

�� <��<��=��highest quality. Singer was once again awarded the ‘Brand ��T��|&�+ ��<=K*�Q��+ ��Company has reached millions of Sri Lankan through its ��; ��|��of global brands, products and services.

New Additions

In order to become the foremost retailer, SINGER has partnered strong brands such as Lenovo, Grundig, Beko, +��|�<��|�*��|�"��|�=��|�:�� year 2013.

Grundig +��#�� &� backed by German technology. Grundig was a known Brand in Sri Lanka decades ago and Singer was proud to re-introduce it to Sri lanka. We introduced LEDs, 3D LEDs ��<*+'�� product portfolio.

Beko �#�$�� Q��]��`��#�$ is addressing all needs of this new smart generation by �� We have introduced Refrigerators/Washing Machines/ Ovens - Free-Standing and built-in range under this brand.

IntexK��|��]^^��K��*��|�K��"��"��the pioneers in the mobile and technology products that �� |�K��"��K��}��"��{�]{|��<��J�� |�*�� Indian brand to announce superior Smartphone powered by Octa Core Processor named ‘Aqua Octa’.

LenovoLenovo is a global brand in every sense of the phrase. In one of the technological world’s most monumental takeover deals costing US$ 1.75 billion, the Chinese computer giant Lenovo, merged with the PC Division of IBM, �� &�� |�=��world’s No. 1 PC maker, according to an article that was ��:��*��discusses Lenovo’s foolproof strategies that saw the "��J��"�?��Q��@�� "|��from tablets and Smartphones.

Making Headway Amid Challenges


We continued renovation and expansion of our

retail network with pride in having one of the most

extensive retail networks in Sri Lanka. This has enabled us to optimise our business

opportunities through addition of more and more

new brands and agencies to our portfolio

> ;��?� *$ +��*��


Year at a Glance

Operating Highlights and Significant Events


January February March

Opened the following Showrooms:Singer Plus� ;��

��

SISIL World - Ampara and Ruwanwella

SINGER HOME - Anuradhapura

`�� to a Singer Plus showroom

��+��*��"�� held on 19th February 2013 at Waters Edge, Battaramulla

��%��#�$��GRUNDIG’ brands was held on 21st February 2013 at Ramada, Colombo.

SISIL World Convention was held on 26th February 2013 at Waters Edge, Battaramulla

Opened a new Singer Plus Showroom in Piliyandala

Upgraded two Satellite Shops in Aralaganvila and Chenkaladi to Singer Plus Showrooms

Opened the following showrooms:Singer Plus - Mullaitivu and Amapara -

��?+��<�� @

SISIL World - Avissawella and ��

Upgraded Satellite Shop in Wattegama to Singer Plus

Re-opened the newly refurbished SISIL World Showroom in Vavuniya

July August September

Upgraded Satellite Shop in Chenkanai to Singer Plus

Upgraded Satellite Shop in Galenbidunuwewa to Singer Plus

Launch of Integrated Loyalty Programme

Singer Fashion Academy felicitated its best students through a grand awards ceremony on 5th September 2013 at the Bishop’s College Auditorium

Upgraded Satellite Shop in Alawwa to Singer Plus


April May June

Singer ‘Stiches & Patterns’ sewing exhibition and fair was held on 9th and 10th April 2013

Opened the following Showrooms:Singer Plus ;�� ;�

��?+��<�� @

SISIL World - Balangoda

Singer Mega - Panadura

Upgraded Satellite Shop in Uhana to Singer Plus

Re-opened the newly refurbished SISIL World Showroom in Eheliyagoda

Opened a new Singer Mega Showroom ��;��|��#�

Upgraded satellite shop in Melsiripura to Singer Plus

Re-opened the newly refurbished SISIL World Showroom in Mt. Lavinia

Opened a new Singer Plus Showroom ��

October November December

Slimmest Huawei Smartphone in �� %��

Upgraded Satellite Shop in Hali-ela to Singer Plus

Re-opened the newly refurbished SISIL World Showroom in Maharagama

Singer Lifestyle Fiesta, exhibition and fair was held for the 3rd consecutive year

��<��!��&��was held at the St. Joseph’s College Sports Complex on 9th November 2013

Opened the following Showrooms@�$�� &�� K - Ratmalana

SISIL World� �;�"��|��

`�� <��<��!��and Bulathsinhala to Singer Plus

Re-opened the newly refurbished SISIL ��<��

Opened the following ShowroomsSinger Plus� ;��

Digital Store�;�=��|�"��

`��<��<�� to Singer Plus

Re-located the Service Centre in Colombo, on 5th December 2013


SOFAS AND SITTING ROOM SUITES

�K��&�� imagination then has free rein and can take you to places far removed from the living room. It’s that Singer magic.

Kelly Fabric Sofa Set *��Q��;��:=;�#==T�

Zurich Leather Sofa Model No. - WFI-ZURICH

Jovana Leather Sofa Set Model No. - WF-JOVANA

Texas Leather Sofa Set *��Q��;��:K;�#�+<�

Fabric Sofa Model No. - WF-BELO

Legend Sofa SetModel No.��:�=#!#Q�

Naple Leather Sofa SetModel No - WF-NAPLE

Lora Leather Sofa SetModel No - WFL-LORA


Special Focus on Furniture

��<�� <��complete range is Singer Homes. Furniture was a welcome addition to us as it complimented the household appliances and electronic products portfolio of our Company.

��<�� {�[��on year. Introduction of fabric sofas and the dining furniture range enabled us to record commendable results during the ��|��|��Deemana Rashiyak’, ‘Wedding Package’, ‘Summer Break’ and ‘Sofa <��&��$��|��options in the likes of Singer Hire Purchase Schemes and credit card instalment payments enabled the product line to move smoothly throughout the year. We also pride ourselves ��our competitors.

Singer Homes furniture is crafted to precision by a team of highly competent local designers using long-lasting timber such as teak and mahogany. We also feature a range of imported furniture from Malaysia and China. +��stringent quality control procedures, to maintain Singer ��#��&��

At regular intervals ranging from six months to a year, ��compliment our tagline, ‘Inspiration for Modern Living’. Apart from practical purposes, customers seek Singer ��suites for the living room, kitchen and the bedroom. ��well as in customised products such as plush leather couches and stylish display units. We create a shopping experience for our customers, where homemakers and homebuilders are able to walk into any of our stores and avail themselves to modern furniture and designs.

Expansions of the furniture business has largely taken place across the Singer Plus channel through the introduction of ��;��;�� was received positively as the furniture displays resulted in creating a more spacious layout which enhanced the experience of our customers. We opened a new branch in Anuradhpura, which is yielding encouraging results. �� a brand new experience of our furniture range.

In order to meet the increasing demand, the Singer furniture wholesale channel enlisted 60 independent �� <��"��"�� "�� %��

Expanding Our Retail Presence

As a true retailer, it is important that Singer maintains a presence at the doorstep of as many customers as we can, �� our valued customer. In keeping with this strategy Singer �� retail channels - namely Singer Mega, Singer Homes, Singer Plus and SISIL World.

We present salient details of enterprise within each of these channels.

Singer Mega

Opened a new Mega showroom at K-Zone Ja-Ela

During the year in review, we proliferated the Singer Mega experience across the country by opening 2 new Mega �� ;��;#��*��<��*��=��"��

Newly renovated Singer Mega stores feature the widest range of world-class brands and the very latest products. �� *��customer shopping experience in an environment of great ease and comfort.



As in past years, the Singer Mega concept was supported by vibrant advertising and promotion campaigns involving �� of value. Singer Mega operates 17 showrooms in Colombo, ��|��!��

Singer Homes

<��J�� single destination convenience. Under the Singer Homes ‘umbrella’ one may browse for quality furniture - from sofas, living room suites, bedroom suites and dining room suites to pantry cupboards, wardrobes, children’s furniture and much ��ever evolving lifestyles of our customers.

In year 2013, Singer Homes opened one new location in Anuradhapura and renovated two showrooms. Singer Homes operates 15 showrooms in selected towns in the country.

Singer Homes opened a new showroom at Anuradhapura

Singer Plus

Singer Plus is at the heart of the Company’s channel network. It is by far the largest and widest reaching channel ��"��|��results Singer Plus is the ideal index to the performance of the entire consumer durables segment of the Company. Singer Plus stays close to the customer, thus building and maintaining excellent relationships along the way. Including satellite shops, Channel reach is extremely widespread with ��]}�� <��=��*��a Singer Plus Showroom would be a prominent and much ��|�� very substantial lead role in building brand equity and brand loyalty. During the year under review, Singer Plus opened 10 new showrooms including 2 Agro showrooms and 5 satellite shops. Another 13 satellite shops were upgraded to Singer Plus status.

��<�� =��?��=@�� the consumer, whilst reaching further and deeper into the hinterland of the country to build solid, lasting relationships with this ‘new’ customer base. In the year ahead, Singer Plus will continue to expand its presence and operations whilst consolidating market leadership in the consumer durables sector. At the same time, we will continue to safeguard and highlight the attributes of the Singer brand whilst �� across the country.

Singer Plus renovated showroom at Delgoda

SISIL World

SISIL World is still another prime example of Singer’s ��year in review, SISIL World continued to consolidate its positioning in the market as a premier consumer durables retailer representing some of the world’s top brands within an environment of an ultra-friendly shopping environment.

SISIL World expanded its distribution strength by 8 showrooms during the year.

10 branches were refurbished to fall in line with SISIL World’s modern retail strategy with the primary �� shopping experience.


WASHING MACHINES

<�� ‘appreciate the scenery and savour nature’s beauty’...if that’s what you’d like to do. Of course, it’s great that the wash comes out ultra clean and fresh.

Singer Washing Machine *��Q��;�<��;�<+�

Whirlpool Washing Machine Model No. - WP-1055LC

SISIL Washing Machine Model No. - SL-SWMFR72

Samsung Washing Machine Model No. - SMGWF550

Singer Washing Machine Model No. - SWM-FA70R

Washing Machine Model No. - SWMA612EGZ


New Products and Business

�� with several new additions, like range of furniture and kitchen appliances, new mobile phones, Lenovo laptops and growing area presence in Agro Business including new farm master two wheel tractor, woodworking machine and a new range of water pumps. Given below are the details of our new products:

New Environmental Friendly

Refrigerators Range

During the year, the Company started to sell environment friendly refrigerator range GEO and ECO, under the trusted Singer brand and Heritage brand of ‘SISIL’ respectively. Both of these refrigerator ranges use the R600a Gas and this leads to save electricity and less impact to the environment.

Singer 3D LED TV

<��=#�� {�]�� =#��price to our valuable customers.

Kitchen-Related Products

Moulinex Juice Extractor was one of the products we ��J�� 2 speed settings and has a 3 litre pulp container.

Rowenta Steam Brush is a Garment Steamer equipped with a wide steam head, removable water tank and fabric brush, ergonomic handle and a hook for easy storage. �� a steam iron. It removes creases and wrinkles easily and is ��and user friendly.

��;��year has a large water tank, variable steam control and a self-cleaning option. It also has a rubberised comfort grip handle and extra steam vents for better ironing. 1.7 litres �� with the changing consumer needs.

We also introduced the Rowenta Essential pedestal fans, �� ;��J��|�60 m3>�� |��height option.

Developing Our Agro Business

Agro business is a key thrust area and a valuable emerging �� <��|�we have introduced several strategic initiatives to expand this business segment in 2013.

During the year in review, from a product perspective, we have introduced a new range of two-wheeled tractors and rice reapers imported from Vietnam and marketed under our own brand name ‘:+'**+<�#'’.

Also, we introduced new woodworking machinery under the ‘Lida’ brand as well as a new range of electronic scales under the ‘Budry’ brand.

Water Pumps

�� }�}��|�� by us, and is ideal for large scale agricultural activities and the gem industry.

��]��|�]�}��#�� "�� market in its category. It was introduced for small scale irrigation and domestic purposes.

��SISIL brand water pumps were introduced exclusively for the SISIL�"�� z}��|�]��



Digital Media

Opened a new showroom at Liberty Plaza

Digital Media Products are the fastest growing product ��<��<��=�� *��|�<��<��=��its Digital Media Channel due to the increasing trend in purchasing digital products such as computers, mobile phones and digital cameras.

��*��"��<��products of leading global brands and state-of-the-art technology backed by expert customer service and after ��"��]|��stores island-wide. Singer consists of 406 retail outlets and over 500 dealers island-wide.

New Brands from Digital Media

�� <��=��seeking products that are making international headlines. We catered this segment by introducing the latest range of =��<��=��|�KQ�#��|�Samsung digital cameras and Philips Head Sets.

Singer’s widespread marketing campaigns of products such as the Huawei Ascend P6 resulted in Huawei becoming the 2nd largest selling smart phone in Sri Lanka, securing �]}�}[�� <��=��*��*��'�� J��"��*��'��?"*'@�� J�� &��Ahonen Analysis.

Our latest addition includes the Lenovo notebook computer series, which is now one of the world’s largest vendor of �"�� J��

popularity among Sri Lankan consumers who patronise our outlets across the island. We are proud to state that, as the authorised distributor of Samsung digital cameras, we have now positioned the product as the number one brand in the compact camera category in Sri Lanka. We are also the second largest reseller of computers in the country.

New Marketing Programmes and Initiatives

Customer Loyalty Programmes

We launched an integrated customer loyalty programme to celebrate our 162nd anniversary. In order to mark our successful operations in the consumer durables market, and to highlight our commitment to enhancing lifestyles of Sri Lankans, we launched a loyalty programme on ]{��+��{�]�� programme integrates the existing reward programmes ��<��<��*��|�� to shoppers.

��<��=�� integrated loyalty programme has enabled us to build stronger relationships with our customers.

�� *��+��regarding the loyalty programme. “Singer is pleased to celebrate its 162nd Anniversary by rewarding our customers. �� <��"��=��<��*��<��schemes, while introducing loyalty schemes by SISIL World ��<��<��;��#'��integrates all available schemes, thereby making the Singer Customer Loyalty Programme one of the most accessible ��<��=��



��<��"��=��<��K��#'��solutions provider, IFS. It is uniquely designed to serve all customers who patronise Singer Plus, Singer Mega, Singer Homes and SISIL World stores. Customers shopping at any of the Singer retail outlets island-wide are eligible to register with this programme and obtain a loyalty card as soon as ��{}��;��J�� purchase their goods. A personalised electronic loyalty card is posted to the customer’s doorstep. Sri Lanka is dotted with over 406 Singer Plus, Singer Mega, Singer Homes and SISIL World showrooms and over 500 Singer dealers. In keeping with a reputation built on 162 years of trusted excellence, Singer provides an unmatched after-sales service that includes a special customer service team dedicated to resolving queries regarding the new Singer Loyalty Programme. Customers can shop online and soon be able to access information about the Singer Customer Loyalty Programme at www.singersl.com.

Avurudhu Dhana Nidhanaya from Singer

Adding to the excitement of shopping for the Sinhala ��Q� �T��|��<��Avurudhu Dhana Nidhanaya �� ]�]�� in a draw from February to 30th April.

�� a minimum of Rs. 5000 at any of the Singer Plus, Singer Mega, Singer Homes, SISIL World Shops or authorised dealers island wide as well as for online shoppers.

Each week the Company drew 10 lucky winners and total of 100 weekly winners were awarded Rs. 100,000/- each amounting to a total sum of Rs. 10 million in addition to that, !��:�� price of Rs. 10 million.

Singer Kitchen Raththaran

��<�� Raththaran promotion concluded on �]��{�]�� <��%��"�� }�� |��<��Raththaran consumer promotion was a great success, with more than 150 customers receiving the opportunity to win a gold coin and valuable kitchen ��month promotion was carried out at all Singer Mega, Singer Plus, SISIL World showrooms and over 500 dealers, ��; ��Raththaran promotion was a timely convention for all loyal customers of Singer and it was the Company’s way of thanking them for making Singer the No. 1 Brand in household appliances in Sri Lanka.

Another Revenue Generating Channel

with Financial Services

We, at Singer continually explore avenues to improve the lives of our customers, through value addition to our products and services at convenient locations or even at ��<��<�� network through Singer Express Pay service, allowing customers to make a wide range of bill payments, including ��|��|��|��cash withdrawals, at any of our islandwide 406 retail outlets.

We also launched SMS receipts to aid customers who pay �� |�by a retail network, underscores our commitment to the environment and our customers. Inspired by the green ��|�<*<��



�� K�� speedy service to customers, reducing queues and increasing �%��<��&��

Customers at any time can walk into a Singer Plus, Singer Mega, SISIL World or Singer Homes retail outlet or any Approved Dealer point anywhere in the country and make ��J��on the same superior standard of customer care and service �� <KQ!#'��#��Our services also extend beyond the operating hours of ��|��with us through our retail network for a longer duration. ��<��#��service is a testament of our overwhelming success, popularity and convenience.

Our commitment to building customer relationships is mirrored in the partnerships we have developed with the companies and institutions involved in the Singer Express Pay service. Many of Sri Lanka’s leading companies have signed up with us to give customers an added dimension of professionalism and convenience.

NDB Bank as the principal agent, Singer Express Pay also facilitates foreign currency money transfers through ��`��*��:��|��|�utility bills, post-paid mobile bills, mobile re-loads �� |��=��?��@�=��|��+K!�K��=��|�� <��#��

We continually strive to enhance the lifestyles of customers �� <��Express Pay counters. As we continue to expand our �� |� �� more convenient bill payment experience.


��<��:��'��~�]��and total equity surpassed Rs. 2 billion as at the end of the �� "��~�}[��year to Rs. 380.7 million, while total comprehensive income increased by a staggering 25% to Rs. 305.6 million in 2013.

��'��z��'��by 11% to Rs. 1.8 billion and interest income grew by 8.3% to Rs. 1.6 billion during the year. Growth in interest income was marginal due to decline in demand for credit and the decrease in interest earning assets of the loans and advances ��"��group sales of consumer durables during the year.

Increase in cost of funds caused downward pressure on the net interest margin. However, during the 4th quarter there was a shift in borrowing cost which was a positive ��"��!�� '��]~}��{�]{��'��Rs. 5.1 million during the year. Provisioning was high in agriculture, transportation and construction sectors where negative consumer sentiments were experienced due to ��"��policies towards these segments and also increased focus on recoveries.

��"�� ]}��;��15 unique service centres located in the North, North-Central, `��<��one way by which the Company reaches out, providing the highest quality of service to outstation and rural customers.

Singer Finance also engaged in group sales to employees ��"��&� branch network and window operational units are linked ��$%��;��;��;��;��%�� loyal customers.

Singer Finance is present at 15 Singer Mega locations ��; ��pack of all these branches of the Parent Company.

+��;��'��<��implemented to maintain mirror records of all database transactions, ensuring that customer information is always secure in case of an emergency.



Singer Finance is committed to the highest standards of customer convenience. In this regard, the Company has �� <��?<��=��@��="|��&��retailer, to accept hire purchase and leasing from our 406 �� outstation customers who have limited access to banks.

:��'��=��%��<��:��?=��@��="&��;��?��@&� ��{�]��"��&��J��ratio amounted to 23.48%, which is well over the statutory ��]�[��"��Company does not invest in non-core business activities and has no investments in land or equity and is focused on its business philosophy enabling to record above average returns throughout its history. Singer Finance was in compliance with all Central Bank guidelines during the year under review. It has earned the respect of its stakeholders as a prudently managed Finance Company.

Singer Retail Academy

Singer Retail Academy was established by Singer Sri Lanka in {��^|��'��<��+�� enhance training and career development aspects of Singer ��

��+��all aspects of human resources from employee recruitment to employee separation. It facilitates selection and retention of employees of the highest caliber apart from providing a comprehensive and methodical training. It also ensures a competent workforce enabling the organisation to provide a superior service and an enhanced shopping experience to �� successfully complete their respective training modules. ��the morning meeting and balance score card.

��|� �� pertaining to target achievement and success of the store. ��|��

areas such as product information, operational procedures and aspects of general management.

��of the retail shops. It provides a balanced performance measurement platform taking into consideration aspects ��|��reports are generated based on data captured, for each month and communicated to respective locations. ��performance. It also provides opportunity to take corrective action when necessary.

�� awards for the best area manager, district manager, branch manager and approved dealer.

Advancements in Our IT Capability

��K��capabilities during the year. In this regard we launched several systems such as the Loyalty Module, Duty Free Module, Rent Module and a Credit Scoring Module to enhance customer service. We also launched a Singer Android App and also completely revamped our website at singersl.com.



��<KQ!#'�<=�?+��@�+�� great shopping experience with world renowned brands, ��+��purchases through our website, search products quickly �� |��|�� It also enables to email product information as a PDF document, track and be up-to-date on status of customer ��'��|��<KQ!#'��|��Singer hotline are the other uses of the App. Customers need to register with us and have an Android OS 2.3.3 to run this App.

We made enhancements to our website using new web ��*=}|�"<<�|�+�+��+��*��'��|��<�� now has a greater speed and supports Internet Explorer 8 and up, Google Chrome, Firefox and Safari. It also has ��|��shopping cart, enhanced homepage image slider, homepage of new product/promotion/brands crawlers, new header menu, product catalog and facilitates customers to view previous online purchases of their accounts. It is search engine friendly while optimised server side programmes have been used.

Singer Distribution Centre

Our state-of-the-art distribution centre commissioned in 2004 celebrated its 10th anniversary on 24th January 2014. ��

During the year a modern racking system was installed to �� J�� It has also increased the storage facilities to accommodate shipments of spare parts of products of new brands and models introduced, thereby enabling us to provide a better service to customers.

��K<$�^��]�{�� {��}��activities such as distribution of consumer durable products and spare parts, inventory controls, receipts, issues and ��;��meeting the requirements of the ISO standard and has been upgraded to ISO 9001:2008.

Distribution centre is one of the key contributors to company’s green initiatives. Employees actively contribute to the collection of E-waste from the Company collection centres, storing and handing them over to relevant authorities for disposal. In 2013, we collected 24.2 tons of E-waste from the collecting centres.

As in the past years, the Distribution centre actively ��"<'��"��

Singer Life Style Exhibition

<��?<��=��@��="� ��stakeholders in the industry organised a gala exhibition at BMICH from 29th to 1st December 2013 for the third consecutive year demonstratively the massive strength of company Multi Brand retail models.

��|�<�� brands from around the world like Beko and Grundig European brands, Hitachi and Sharp from Japan and many other local and international brands were among the many products showcased to the public.

�� }�� by Singer Sri Lanka. Added to this were another 100 stalls of small enterprises showcasing clothes, cosmetics, sweet meats, accessories, shoes and many other day-to-day household items.

Singer embarked on this endeavour in tandem with its ��on brands marketed by the Company. Creating awareness about the products in store, at all the Singer outlets island- ��

��"��}�|��also included family-oriented product demos, cookery and music shows with the participation of local celebrities as ��+�� hour, giving away gifts such as 32-inch television sets and ��|�� tickets were donated towards Singer’s Corporate Social '��?"<'@�� dialysis machines to hospitals that needs them.



A Singer Finance booth was set up at the venue to facilitate interested customers to obtain instalment payment option to purchase products. Sampath Bank being the banking partner of Singer, also set up a stall for the convenience of ��

The Singer Fashion Academy

��+�� }~��operations has 69 centres and three franchise centres around the country. It is a familiar element in the lives of many communities. We had a student population of over �|��around the country. During the year, we conducted many � ��Q!$|�� detailed below.

��Q�� :��+��|� �� of Rs. 3,000 per student. In addition, World Vision funded 18 sewing machines for the Neluwa showroom ��

��<��:��+�� <�� We also conducted many workshops for home science teachers during the year.

A total of 15 young women from the Road Development +�� set up sewing skills development programme in Fashion Academies in Baddegama and Anuradhapura.

We conducted several courses in order to attract many international students, especially Maldivians, to our academy.

��+ ��"��:��<�� on September 2013. A total of 68 students who successfully completed their Diplomas in year 2013 in our academy �� + ��"�� at the Bishops auditorium. As in the past, we organised a fashion show to display the talents of our students with the �� huge success where over 750 well wishers attended.

��:��+�� organised in April at the Jayawardena Centre, Colombo. �� to pursue our vision of expanding our business island-wide.

�� :��+�� the year.

��<��:��<��|�we held 38 workshops all over the country free of charge. ��our academy. With the intention of taking fashion outside the class rooms, we conducted many workshops in our showrooms throughout the country.



��<��:��+�� T�"+��{{��{z��Q��2013. Approximately 65 students sat for the examination from all the academies in the island in both dressmaking and embroidery.

Singer Call Centre

�� <��=�� set up a call centre. Operating year round from 9 a.m. to 6 p.m., we record all telephone conversations in order to assure our customers of our accountability. Following table ��%��

2013 2012

Call Volume

Inbound 128,815 96,578

Outbound 218,549 139,613

�� 347,364 236,191

��$��"��

Welcome Calls 132,863 83,051

Arrears Follow Up 13,822 6,878

Others 71,864 49,684

Q��<�� 13 8

+��Q��"��><�� 26,720 29,523


SEWING MACHINES

��<�� ‘hem and stitch’ of yesteryear to an eclectic world of embroidery, vibrancy and colour that is only as limited as one’s imagination.

��$��> ��=�'�� Model No. - MC6180

��$��> ��Model No. - MC15N1-1W

��$��> �� Model No. - MC974-N-1W

��$��> ��*��Q��;�:`�`'+�=��

��$��> ��Model No. - MC8215

��XY[�<��*��*��$��> ��Model No. - MC160


Financial Review

�� concurrence with the Audited Consolidated Financial Statements of the Group and the Company for the year ended 31st December 2013. In this Report, ‘Group’ refers to <��?<��=��@��="��|�<��:��?=��@��="��%��'��?=��@�=��"��&��<��?<��=��@��="�

Preamble

��&��#��and adverse market sentiments for the Consumer Durable Market. Consumer segments served by Singer continued to ��+��Supermarkets and high turnover based retail sector coming ��+��]��{�]��Both these impacted the price levels and thus consumer sentiments and the buying power. As a result, the business ��%�� %��+��|��"��&��sales revenue increased marginally, as the retail sector came ��+��|�� |�net of turnover taxes 0.2% above prior year at group level, while the net revenue was 0.6% below prior year at company level. However, it should be noted that revenue growth was derived singularly through organic growth and it’s noteworthy that Singer Group recorded a Compound Annual !�� '��?"+!'@��]��z[��"+!'� �]��{[� ��consecutive years.

In this challenging year, Singer consolidated its core strengths namely ‘Brands, Distribution, Financial Services, Customer Service, People and Systems’ and continued �� <��in the long run and to enhance medium and long-term sustainability. During the year under review, Company added 10 international, well-recognised brands to its brand portfolio, expanded distribution network adding 27 branches and satellite shops, renovated shops, adding two more distribution channels, increasing service network by adding two more service centres and expanding service franchise network, strengthening new businesses like Digital Media, Furniture, Agro and Industrial Air-Conditioning while consolidating and strengthening human capital, online real time ERP system and Financial Services.

Consequent to challenging business environment, static top ��|��uphold market share, increased selling and administrative costs mainly arising due to expansion of business and further strengthening of core competencies of the Company ��|��comprehensive income for the year experienced a sharp ��'��}]^��&��'��]|�{��million - a drop of approximately 61%. As explained above, Singer’s strategic direction was more towards medium and long-term success by increasing market share as a strategy ��;��{�]��

2013 RESULTS IN PERSPECTIVE


Sri Lankan Economic Landscape

��!�� {�]��z�{[��[��{�]{��estimated to have shown a high growth of 9.2% followed by 6.7% for service sector and 4.1% for agricultural sector.

��"��"��&��K��?""�K@�?{��>�z�;�]��@��6.9% in December 2013, from 7.6% in December 2012. Interest rate declined compared to prior year proving that ��?��@��]��withholding tax and the AWPR declined from 11.69% and 14.29% in December 2012 to 8.29% and 9.96% respectively in December 2013. Workers’ remittances are estimated to be around US$ 6.7 billion in 2013 vs US$ 6 billion in 2012, up by 11.7% from previous year. However, high electricity charges plus the impact of turnover related taxes, specially ��+��activities specially in retail and consumer durables industries. Nonetheless, the Government’s commitment on sustaining ��{�]��somewhat helped the economy.

Basis of Preparation and

Comparative Figures

��!��:��<��{�]��:��<��<��?<��=��@��="��<��:��?=��@��="�� |��J��"��&�Financial Statements represent the Financial Statements of <��?<��=��@��="��

��:��<�� <��=��+��<��?�� <=:'<@��K��"��+��<��=��?K"+<=@��J��the Companies Act No. 7 of 2007 and Sri Lankan Accounting and Auditing Standards Act No. 15 of 1995. ICASL issued guidelines on accounting for fully-depreciated Property, Plant and Equipment in the year 2013. Group adopted these guidelines and re-assessed economic useful life of fully-depreciated Property, Plant and Equipment and made ��J��:��<��and required disclosures are as given in Note 12 to the Financial Statements.

"�� with the presentation made in the Financial Statements for the year ended 31st December 2012 which was presented in year 2012 Annual Report. Details of the basis of preparation ��Q��]�{��Financial Statements on page 160.

Revenue

Group revenue was Rs. 25.5 billion which is 0.2% above prior year. Revenue of the Company for the year decreased marginally from Rs. 23.9 billion to Rs. 23.7 billion, a decrease ��'��]��?��[@��+��|��<��high electricity costs plus higher prices due to impact ��consumer sentiments and the buying power of consumers and as a result, the business environment continued to be ��%�� %��collections. Although, the Company’s gross sales revenue increased marginally, as the retail sector came under Value +��|�� taxes was 0.2% above prior year at group level and marginally below prior year at company level.

Group experienced volume drops in traditional product lines such as sewing machines, refrigerators, televisions, washing �� volume growth in the new Digital Media Products specially ��*��|�:��|�+��;"��Drop in revenue was partly compensated due to volume growth in new introductions, expansion of new channels and adding of new shops, renovation of existing shops, ��;��;��?+�=@�� ;��;��?��=@��

2013 Results in Perspective


Direct Interest Cost

Direct interest cost of the Group increased from Rs. 547.2 million in the previous year to Rs. 656.1 million, an increase of 20%. Included in direct interest cost are interest cost for customer deposits and interest on bank loans at <��:��?=��@��="��"��<��:��?=��@��="�� '��'��z�billion proving deposit holders’ trust in Singer Finance ?=��@��="��<��:��?=��@��="�decreased interest rates compared to prior year in line with market trends. Further to that bank borrowings increased over prior year to fund growth in higher purchase and lease receivables.

Gross Profit

!��!�� Rs. 8,764.5 million compared with Rs. 8,773.8 million in the previous year, a decrease of 0.2%.

��!��&��}[��[��of the Company is Rs. 7,652.2 million as against Rs. 7,729.7 million in the previous year, a decrease of 1%. Gross margin ��"�� {�{�[�?{�]�@��{��[�?{�]{@|��{[��K��|�� of both Group and Company decreased over prior year mainly due to decrease in cash margin.

Gross margin percentage of both Group and the Company marginally decreased over prior year due to decrease in cash margin as a result of value added tax impact since the Company did not pass the full impact of value added tax to customers due to retail sector coming under the �+��K��|�� %��conditions and the Company focused more on retaining and ��;��

Other Income

Other income of the Group increased from Rs. 122.0 million to Rs. 131.2 million, mainly due to the increase in overdue ��|��in subsidiary companies. Included in other income are ��'��z�z��'��{�}�million of miscellaneous income, which includes insurance ��|��<��:��?=��@��="�

At the Company level, other income decreased from Rs. 222.0 million to Rs. 193.0 million by Rs. 29 million mainly due to decrease in service fee income from subsidiary ��|�<��:��?=��@��="��services rendered in maintaining loan accounts. Included in other income was Rs. 77.8 million of dividend income ��<��:��?=��@��="��'��]��{��<��:��?=��@��="��'��z�z��Rs. 29.6 million of miscellaneous income. However, service fee and inter-company dividends were eliminated in the Consolidated Financial Statements of the Group.

Selling and Administrative Expenses

Selling and administrative expenses of the Group increased over prior year by 12.9% from Rs. 5,891.9 million in 2012 to Rs. 6,653.6 million in 2013. Selling and administrative expenses of the Company increased over prior year by 11.5% from Rs. 5,345.7 million to Rs. 5,961.9 million.

Managing costs in a dynamic business environment is a challenge since the management needs to maintain ��%�� as catering to the growth of business prospects. Both Company and Group carefully managed costs without ��Period expenses such as rent, renovation costs and some



��of operations. Expenses such as electricity, travelling ��|��as explained above. Advertising and promotional costs increased due to aggressive marketing plans, above-the-line ?+�=@�� ?��=@��campaigns to sustain and expand market share under not so favorable market conditions for future prospects. Impairment on trade and other receivables at Group and Company levels increased year-on-year by Rs. 174.1 million ��'��z��%��collections as a result of negative market sentiments.

Other Expenses

Other expenses represent depreciation on Property, Plant & Equipment and amortisation of Intangible Assets. Other expenses of the Group decreased by 8.5% over prior year ��'��{{~��'��{�~�^��"��&�other expenses decreased by 9.6% from Rs. 215.9 million to '��]^}�]��was due to capital expenditure incurred in shop renovations and leasehold improvements.

Net Finance Cost

Q��!�� Rs. 955.0 million to Rs. 1,260.2 million, an increase of 32%. <��|�"��&��Rs. 864.6 million to Rs. 1,218.1 million, an increase of 41%. Group and Company borrowings grew over prior year by Rs 1.6 billion and Rs. 794 million respectively to fund business expansions and working capital growth, specially an increase in trade receivables and inventories. Further to that both Group and Company issued Rs. 2.5 billion and Rs 1.5 billion redeemable debentures respectively with a maturity period between 3 to 5 years to strengthen long-��!��"��+��factors contributed to the increase in net interest cost of both Group and the Company by 32% and 41% respectively.

Finance income of the Group decreased from Rs. 99.1 million ��'��^^��+��"��|��decreased from Rs. 189.4 million to Rs. 141.0 million due to decrease of interest income from Subsidiary Company Singer :��?=��@��="�� "��|�<��?<��=��@��="�� |��"��:��<��

Share of Profit of Equity-Accounted Investee

(Net of Income Tax)

��>��#J��;+��K��!��'��]��'��}�~��{�]{��Equity-accounted investments in the Group are limited to Reality Lanka Ltd.

Income Tax Expense

Income tax expense of the Group was Rs. 206.4 million as against Rs. 561.5 million in 2012. Income tax expense for the Company declined from Rs. 466.7 million to Rs. 146.1 million. ��"��of both Group and Company declined due to the decrease in ��<��?<��=��@��="��{~[��]��+��{�]]�

!��{~��[��]��[��{�]{�while that for the Company was 32.6% vs. 31.2%. Including ��+��:��<��|�!��&��[��[� ��"��&��z�}[��][��!��"��to impact of disallowable expenses for income tax purposes ��

Profit for the Year

��!��'��}{{�]��{�]��of Rs. 693.6 million or 57.1% over last year mainly due to the ��increase in interest cost, increased selling and administration expenses and a static top line.



<��?<��=��@��="&�� '��]�^�million vs. Rs. 1,029.8 million reported in the previous year, a decrease of Rs. 727.9 million or 70.7%.

K��!��|��J�� '��{�]��'��]|]}^�z��{�]{��attributable to non-controlling interest was Rs. 60.0 million vs. Rs. 56.0 million in 2012. Non-controlling interest pertains ��<��:��?=��@��="��{{��December 2010 after allotment of IPO shares.

Other Comprehensive Income

Other comprehensive income for the year is limited to ��Group and Company level whereas last year it included both actuarial loss of retirement obligation and revaluation gain of land and buildings of the Company. Land and buildings ��"�� {�]{��Messrs Chulananda Wellappili, an Independent Valuer. �� {�]��

Total Comprehensive Income for the Year��!�� Rs. 522.1 million after tax for the year vs. Rs. 1,320.4 million which was below prior year by Rs. 801.3 million.

<��?<��=��@��="&��year was Rs. 299.2 million vs. Rs. 1,135.9 million reported in the previous year, a decrease of Rs. 836.7 million.

In the Group, total comprehensive income attributable to equity holders was Rs. 459.1 million vs. Rs. 1,264.7 million in 2012.

��;��interest was Rs. 60.0 million vs. Rs. 55.7 million in 2012.

Earnings Per Share

!��#��<��?#�<@�� was Rs. 3.69 vs. Rs. 9.26 in year 2012. Earnings per share of the Company was Rs. 2.41 vs. Rs. 8.22 in year 2012.

Price Earnings Ratio

��;��;��"�� 31st December 2013 was 36.93 times against 12.70 times as at 31st December 2012.

During the year under review, the Company’s share price ranged between Rs. 80.10 and Rs. 113.00, closing the year at '��~^��'��{�]{� ��'��]�~�}�|� Rs. 78.00 and Rs. 102.30.

Dividend

"��'��amounting to Rs. 751.2 million during the year in respect ��]��{�]{��'��{�}��to Rs. 313.0 million for the year ended 31st December 2013. K�� =�+<�]��#��'��&��J��reporting date is not recognised as a liability in the Financial <��]��{�]��"��



Solvency

Section 56 of the Companies Act No. 07 of 2007, requires that a solvency test be carried out prior to the payment of �� "��Solvency from the Auditors prior to the date of dispatch of ��

Return on Equity

Return on Group equity for the year under review is 9.5% whilst in the previous year it was 24.9%. Return on equity of the Company was 6.6% compared to 24.8% in the previous year. Return on equity has been computed by dividing the ��J��

Non-Current Assets

Non-current assets of the Group increased from Rs. 7,605.3 million in 2012 to Rs. 8,562.0 million in 2013, an increase of Rs. 956.7 million. Non-current assets of the Company increased from Rs. 4,762.4 million to Rs. 5,447.0 ��|��'��~��receivables increased by Rs. 624.4 million in the Group and Rs. 218.6 million in the Company. An increase in Property, Plant & Equipment by Rs. 354.2 million for the Group and Rs. 328.5 million for the Company was mainly due to capital expenditure to improve leasehold premises, shop renovations and expansions. Land and buildings were revalued in the year 2012 by Messrs Chulananda Wellappili, ��K�� :��<�� ]��{�]{�� arising from the revaluation was transferred to revaluation reserve in year 2012 and next revaluation is due on 31st December 2014.

Company’s non-current assets increased over prior year by another Rs. 149.3 million due to investment in debentures ��<��"��<��:��?=��@��="��

Current Assets

Current assets of the Group increased from Rs. 13,795.3 million in 2012 to Rs. 16,036.2 million as at 31st December 2013, an increase of Rs. 2,240.9 million or 16.2%. Current assets of the Company too increased by Rs. 613.2 million from Rs. 11,610.5 million in 2012 to Rs. 12,223.7 million in {�]��receivables and inventories in both Group and Company �� other receivables increased due to growth in the lease assets and hire purchase receivables. Inventory increase of Rs. 929.7 million over prior year was due to expansion of new brands and models and expansion of shops in a growing economic environment.



Total Assets

��!��]��^[�� Rs. 21,400.5 million to Rs. 24,598.2 million, an increase of '��|]^z�z�� 31st December 2012.

��"��'��]|{^z�^��|�a percentage increase over the prior year of 7.9%.

Total Equity

��!��J��;��decreased by Rs. 253.2 million over 2012 to stand at '��}|��]��{�]�� {�]{��"��J��'��}{��over the previous year and is at Rs. 4,316.9 million due to same reason as stated above.

Non-Current Liabilities

Non-current liabilities of the Group increased from Rs. 2,937.5 million to Rs. 6,174.7 million. Non-current liabilities of the Company increased from Rs. 2,352.5 million ��'��|{]~�� increase in interest-bearing loans and borrowings by ��!��"��Company redeemed Rs. 472 million of debentures and issued new 3-year debentures amounting to Rs. 1,500 million and borrowed bank loans net of settlements of Rs. 1,252.8 million and net commercial paper of Rs. 1,608.2 million ��<��"��|�<��:��?=��@��="��}��debentures of Rs. 1.2 billion and borrowed Rs. 495 million ��;�� ;��lease receivables.

Current Liabilities

Current liabilities of the Group increased from Rs. 12,849.8 million in 2012 to Rs. 13,063.5 million as at 31st December 2013, an increase of Rs. 213.7 million. At Company level, current liabilities decreased by Rs. 115.6 million compared to 31st December 2012.

Current liabilities of the Group increased mainly due to ��&��<��:��?=��@�PLC by Rs. 3,012.0 million. Loans and borrowings decreased by Rs. 1,136.5 million mainly due to conversion of short-term borrowings to long-term borrowings by way of issuing ��;��by Rs. 865.1 million. In the Company’s Financial Statements, movement in current liabilities was due to same reasons as explained above except the increase in customers’ deposits.



Operating Cash Flow

!�� |�� '��{|��{�z�� Rs. 3,117.8 million in 2012. Inventories increased by Rs. 929.8 million while trade debtors including hire purchase and ��'��]|^~~��other payables increased by Rs. 882.5 million and customer deposits increased by Rs. 775.7 million respectively.

Q�� !�� '��z^�}��was mainly due to increase in inventories, trade receivables, interest cost and income tax payments, but it was ��;��customer deposits.

Q�� "�� Rs. 879.5 million, due to the same reasons reported in the Group except customer deposits.

Investing Cash Flow

During the year under review, the Group made investments ��'��{�� ;�� J��|�� #J��Intangible Assets of Rs. 601.2 million and investment in marketable securities and bank deposits by Subsidiary "��|�<��:��?=��@��="��'��]�^�{��;�� ;�� interest received of Rs. 98.9 million, disposal of Property, Plant & Equipment of Rs. 7.1 million and Rs. 24 million of loan repayment by related companies.

��|��"��&�� investment activities was Rs. 927.1 million, mainly from loan ��<��"��|�<��:��?=��@�PLC of Rs. 1,401.2 million, interest received of Rs. 141.0 million ��<��:��?=��@��="��others of Rs. 79.2 million. However, company invested Rs. 552 million in acquiring of Property, Plant & Equipment and Intangible Assets.

Financing Cash Flow

Q�� !�� Rs. 621.1 million due to net increase in interest-bearing loans �� '��]|�~^�{�� ?'��z�~�]��@� ��the year.

Q�� Company was Rs. 74.6 million, due to same reasons as explained above.

Cash and Cash Equivalents

As at 31st December 2013, cash and cash equivalents of the Group decreased from a negative balance of Rs. 48.2 million to a negative balance of Rs. 148.6 million. At the Company level, cash and cash equivalents decreased from a negative balance of Rs. 207.3 million to a negative balance of '��{��|��

Accounting Policies

Group and Company Financial Statements for the period ended 31st December 2013 in this Annual Report is prepared and presented in accordance with SLFRS ��=�+<�� ]��{�]{��J��Colombo Stock Exchange and the Companies Act No. 07 of 2007 respectively.


ELECTRONICS

Singer takes once imagination beyond the living room to a world of vibrancy, colour and excitement…

Hitachi LED TV HD Ready - 32” *��Q��;��;=��{��~+�

Home Theatre System*��Q��;��<}}^��

Samsung LED TV Smart - 46” Model No. - SMGUA46F6400

LED TV Smart 3D - 47”Model No. - G47VLE9372

Audio Hi FiModel No. - SXL2200

LED TV Full HD - 42” *��Q��;�<=#�{��}{��"


EMBRACING THE FUTURE AND CARING FOR POSTERITY

Embracing the Future and Caring for Posterity

��+� ��:��$�� +�� $ *�� '�� K�� +��$ *��Ceremony conducted by the Ceylon Chamber of ��/��$ �� *� ��'�� K��< �; � �*�$�� $��\� ��+��$ *��#�� "�surpassing a number of other customer-centric organisations in the country, thus, signifying that Singer is truly a ‘Customer Obsessed’ Company.

Singer takes a holistic approach to its customer �� $�� ;�+�criterion. Through Singer, customers have the �� ]Y�� products comprising over 50 local and foreign product and service brands. For 162 years, Singer � ��*��$��*�� *�� *� ��* ��+�� high in quality and superiority.

Accessibility is a major part of maintaining customer relationships at Singer. As at 31st December, Singer has expanded its reach across the country through 406 retail outlets and 10 regional service centres. Every year, Singer builds on its previous year’s reach. The main scope of the Singer Retail Academy is to identify the � ��^�� +��*�� and thereon provides extensive training to Singer employees, ensuring that the service they provide ��/�_[X`� �� $��introduction of the revamped Singer Customer Loyalty Programme that is streamlined to bring �� $ *��$�� Singer Plus, Singer Mega, Singer Homes and SISIL World stores.

Singer’s 2013 Corporate Social Responsibility (CSR) report features the theme of purity. The #��$ ��*��+��"�� #��w��+� �=�\��z��<��":�$��

Chairman’s Statement

Dear Shareholders,

<��to the customer each day of our working life. It is not merely by spreading our sales points and service stations across the island nation, but also by knocking on the doors of customers, a tradition begun by our founder, Isaac Meritt Singer. With Singer, our customers are convinced that this is a lifetime relationship going beyond an ordinary sales contract.

+�� |��lifetime. When an employee comes under our purview we ensure that he is mentored and developed until he reaches upto the fullness of his potential. We also give opportunities for employees to go beyond their chosen profession into areas where they show likely potential to excel.

While we look after our customers, employees and shareholders, there is a world beyond that needs addressing. Among many corporate social engagements we enter into, what stood out as �� :��=��&��the farmer community of the North-Central Province �� allocated a share of money from each sale of ‘Singer’ and ‘SISIL&� ��

With the world population due to increase beyond 7 billion, each one of us has a responsibility to ensure that we sustain our neighbourhoods in a manner ��+��through this Report you will realise the extraordinary �� this end.

Sincerely,


28th February 2014Colombo



� ;�� *��{�{<�$ �� *��$�� *��;��$ �� *�� *�� *� �+�� kidney diseases.

Singer’s rank among the Ten Best Corporate ��K��< �; ��]��+� ��a testament to the Company’s sustainable business philosophy. Singer’s business mix integrates the sustainable development of entrepreneurship, ��:��*�� :�� :�$ �� :� arts & culture and local suppliers.

Products and Services

��"��&��domestic and industrial sewing machines, consumer electronics and electrical home appliances, furniture, agricultural equipment, personal computers and digital ��|��"��engaged in manufacturing of furniture and agricultural equipment. Further, the Company provides hire purchase ��$��functions are limited to providing after sales services for its products and handled through a service franchise network, ��"��&��?]�@�'��<��"��strategically located in the key towns of the country. Principal activities of Subsidiary Company, Singer Finance ?=��@��="��|��|�vehicles or other items either by letting on hire, ��|��

��"�� products that belong to local and international brands. ��page 31 in this Report.

Operational Structure

��!��<��?<��=��@��="|�<��:��?=��@��="�?�~��[�� @|��Reality Lanka Ltd. - Associate Company and the Singer *��:��|��? ��@��the previous reporting.

Location of Headquarters and

Number of Countries Served

��"��<��=��K�� "��+��'��'��$%��Q��~�|�Q��* ��|�Colombo 02, Sri Lanka.

Legal Form and Ownership

Detailed corporate information of the Company including legal form and information on share ownership is given in the Inner Back Cover of this Report.

Our Presence and Changes to Size and

Ownership Structure

Our Frontiers Extend Further

��!��>"��Sri Lanka. We further extended our frontiers in the island by opening 22 new showrooms and 5 satellite showrooms. Q� �� ;�� |�� |�+��|�'� � ��|��|�*��|�+��?+��<�� @|�+�� |�� |�� |��|��|��;��;�#�|��|�'��|�+��|�"��|�� |��|��|��|�=��"��and 5 satellitie showrooms were opened in Diyasenpura, Dippitiya, Naiwala, Alawathugoda and Ayagama.

Scale and Scope

We had a total of 1,637 employees at year end 2013. Net sales for the year ended 31st December 2013 was Rs. 25.5 billion and total comprehensive income tax was '��}��J��J��the Group stood at Rs. 5.0 billion, Non-controlling interest stood at Rs. 0.4 billion. And loan capital at Rs. 10.5 billion as at 31st December 2013.

��!��&��|��|��|�assets, debt and equity together with key performance ratios are given in the Financial Statements on pages 154 to 203 and Group at a Glance on page 04 of this Report.


How Singer Became

a Customer-Obsessed Company

1. We focus on customer satisfaction/retention over customer acquisitionWe do not obsess over wanting more. Instead, we appreciate and take care of what we have got, letting the brand advocates drive new customer acquisition.

_/�%�� *�� +�$��experienceA poll of Forrester’s Customer Experience Council reveals that only about 18% of the companies align customer experience with the brand strategy, a necessity in creating consistent positive customer/brand interactions and conformational messaging.

3. We are nimble and connectedWe break down silos and create seamless service experiences and customer experiences across the standard and emerging channels our customers are using every day.

4. We use multiple sources of customer data ��*��=��*�+�$ +�� *��*�� next actionsWe create a relationship of trust. We use data to get to know and show that we know each customer, and then we go beyond this to predict and suggest best next actions and purchases.

5. We use customer intelligence to gain insight at scale that leads to better products over time��¡� �� it to develop the products, services and brands our customers desire.

6. We do not just talk about the customer experience; $��We as a customer-obsessed enterprise focus our strategy, energy and budget on processes that enhance knowledge of and engagement with customers and prioritises these over maintaining traditional competitive barriers.

7. We recognise that the customer journey is almost never a straight line ��&��;��|�we invest in creating a 360-degree view of the customer �� this in real-time service.

�/�%�� $�� post-transactionWe focus on customer engagement both shortly and long after the sale. We communicate proactively and personally in an authentic way.

9. We invest in content creation over advertisingWe develop and deliver helpful, shareable content rather than pushing promotional content and advertising.

X[/�%�� "��*�We realise that customer service and the customer ��;��;�� interaction is personalised and satisfying.

How We Turn Our Customers into

Raving Fans

An expression that is attributed to John Maxwell says, “People don’t care how much you know until they know �� K��customer service, it is that we care - and the customer knows it. Apathy kills the relationship and true caring and concern for the customer trumps all.

Customers want to be heard, and equally as important, understood. It’s one thing to make an error on an invoice which may irritate the customer. But if we have a problem that is due to a breakdown in communication, well that is the worst moment of misery we can have with our customer.

A fundamental need of most, if not all people is to feel appreciated. Customers want to be appreciated for spending their hard-earned money at our place of business. So we �|��¢&�<��=��customers know we appreciate them.

�� customer at a time. However, to build a great company, �� |��not only comes back, but becomes part of your sales team. ��&��¢

�� raving fans:1. We singularly acknowledge the customer. 2. We care about the customer. 3. We attentively listen to the customer. 4. We respond to the customer. 5. We appreciate the customer.



Obtaining/Renewing Environmental

Compliance Certification

Protecting the environment is a responsibility that goes hand in hand with our business practices. Each factory that comes under the Singer Group has acquired all licenses �� "��Environment Authority’s Regulations. Our manufacturing facilities in Piliyandala and Ratmalana are licensed under the #��=��?��<��{�� Q��#��+��Q��z��]^~�@�

{��[[X�_[[�� - Singer Manufacturing Facility Piliyandala

{��[[X�_[[�� - Singer Distribution Centre Piliyandala

Awards Achievements and Honours

People’s Brand, Durable Brand of the Year and Youth Brand of the YearFor the ninth successive year, ‘Singer’ was named as the ��&��T��&�� on island-wide research carried out by AC Nielsen and the <��=��K��*��"�� T��&��|��T��T��

Most Respected Entities in Sri LankaCommissioned and conceptualised by LMD, the list of Most Respected Entities is based on surveys of business people by the Nielsen Company. Once again we have made it to ��:�� *��'��Business Entities in Sri Lanka. Singer is the Most Respected Organisation in the Consumer Goods Category and Second �� "<'|��"��|�*��|��|�K��|�Work Environment, Vision and Nation-Mindedness.

Best Corporate Citizen Award

��<�� "��"��"��"��"��of our outstanding contribution to the community through ��"<'��

We were also recognised for being the Best Organisation in ��"��'��&�� our strong connection to all our customers.

Fitch Ratings Lanka Ltd. :��'��=��=��%�� ;��<��?<��=��@��="��Q��+?��@&��:��'��=��=��%��<��"��<��:��?=��@��="|��;��?��@&�the outlook is stable.

Annual Report Award

$��T��{�]{�+��'�� !��+ ��'��"��K��"��+��of Sri Lanka. Annual Report 2012/13 of our Subsidiary "��|�<��:��?=��@��="� �+ ��"��+��:��"��K��"��Accountants of Sri Lanka.

Among the Best People Managers

��'�� + �� <��=��K��Development Awards’.



The Parameters of this Report

‘Embracing the future and caring for posterity’ covers the calendar year ended 31st December 2013, which concurs ��<��?<��=��@��="��"��$��'��was published in the Annual Report for 2010 based on GRI !��!��&��in compliance with version G3.1 and the disclosures have been drawn up to application level C+. It would be our �� >J��report. Should this necessity arise, please use any facility at your disposal and get in touch with:

Finance Division,<��?<��=��@��="|No. 80, Navam Mawatha ,Colombo 2.

Report Boundary and Content

��'��"��&��Sri Lanka, thus includes the operations of the Company’s<��|�<��:��?=��@��="��+��Company, Reality Lanka Ltd.

Data Measurement Techniques and Bases

of Calculation

Financial data presented in this Report have been extracted from Audited Financial Statements. Accounting policies used in preparation of the Financial Statements including the basis ��pages 159 to 167. Man hours in respect of training provided for the employees of the Company are computed based ��|�boundary or measurement methods used in the preparation of this Report are the same as those used in the previous report issued in 2012. Information presented in this Report in respect of prior periods has not been restated.

Good Governance

Governance, Commitments and

Engagements

Singer enshrines the highest ethical standards in the ��tasked with ensuring that the resultant regime of exemplary governance across all aspects of business, is in the best interests of stakeholders.

��"��;��the Board, the Independent and Non-Executive Directors.

��?z@��"��"��#��$%��

��|��"��|�� or direction is through General Meetings. Shareholders can also communicate in writing directly with our Compliance $%��Q��;#��"��

Employees can communicate with the Board through their respective divisional heads. We hold monthly management review meetings and operations meetings, where all ��|��We also encourage and foster a culture which enables all levels of employees to freely express their views and �� !��CEO and other Directors. Management review meetings and operations meetings are held every month. Other employees communicate with the Board through their respective divisional heads.

��#��"��|� ��and one senior managers, meets weekly to discuss and address current operational matters and issues of strategic nature and take prompt action.

Audit Committee��+��"�� <��!��to provide additional assurance on the reliability of the Financial Statements through a process of independent ��

+��|��+��"��in assisting the Board of Directors in discharging its ��J��and related communication to the shareholders and the public. As at year-end, the Audit Committee comprised two Non-Executive Independent Directors of the Board namely ��+�*��<��<�� <��"��:��>"��$%��|�+��<��|�'��#��+�� |��"��>��!��"��#��$%��and relevant operation Directors and Managers attend the meetings by invitation.



Remuneration Committee��'��"��{� Non-Executive Independent Directors and the Non-Executive "��<��!��:��<��"��"��Q��;#��K��!��"��#��$%��:��the Committee by providing the relevant information and ��of the Committee is to ‘look into fees, remuneration and ��J��"��|�!��"��#��$%��|�Independent Directors and the Executive Directors of the Board of the Company including Alternate Directors and approve recommendations made by the Group Chief #��$%��"��$%��<�� Asia Ltd. Singer Asia Ltd., is the Intermediate Parent of ��"��"�� pertaining to the remuneration and perquisites of the key managers of the Company.

Avoiding Conflicts of InterestAll our employees are bound by a written Code of Business Conduct which they sign as part of their written Contract of Employment. In order to refresh their sense of ��|��the adoption of subsequent revisions, the Code of Business Conduct must be signed annually by each key and senior ��$��of interest is strengthened further by our Whistle-Blower Policy as well as the collective agreement we sign with the labour unions. Our Whistle-Blower Policy, introduced in 2009, enhanced transparency and promotes adherence to our Code of Ethics. It encourages any employee who suspects wrong doing at work, whether it is done by management, a peer or any other employee, to raise their �� our labour unions ensure that there is an equitable balance �� <��?<��=��@��="��employees, reducing any possible temptations that may lead ��K��providing for the welfare needs of our employees, we ensure that they are motivated and eager to abide by the Code of Business Conduct, thereby further reducing any potential ��

We believe that by promoting a sense of community and ownership amongst our employees, through the provisions of general compensation we are able to encourage our employees to promote good corporate governance.

Eligibility of Board MembersWhen appointing new members to our Board of Directors, ��J��that we are in accordance with the rules and regulations published by the Colombo Stock Exchange, the Code of ��"��!��K��"��+��<��=��Securities and Exchange Commission of Sri Lanka and the Companies Act No. 07 of 2007.

We also identify and groom our executives for possible appointment to the Board in a well-structured process ��may involve overseas assignment and training at foreign universities and other institutions.

We provide opportunities for current members of the Board of Directors to be exposed to new developments in key areas by conducting regular training programmes and having members serve in related committees.

Memberships in Associations��"��|�<��?<��=��@��="��<��|�<��:��?=��@��="�� associations:

¤� ��"��"��"��

¤� <��=��;"��"��

¤� K��<��"��"��"��

¤� <��=��;"��"��

¤� ��#��&�:��"��

<��:��?=��@��="�� associations:

¤� ��:��+��<��=��

¤� =��+��<��=��

Several of our Directors and key managers serve on a voluntary basis on the Executive Committees of the following associations, in order to contribute to the overall development of the industry:

¤� ��*��"��<��?<��=��@�PLC serves in the Executive Committee of the Ceylon Chamber of Commerce and is a Past Chairman of the Import Section of the Ceylon Chamber of Commerce. He is also the Past Chairman of the Sri Lanka-China Business Council. As an indication of the Company’s involvement in promotion of sports and youth development, he is the immediate Past President of the Mercantile Cricket Association.



¤� ��!��*��<��?<��=��@�PLC is an Executive Committee Member of the Industrial +��<��=��¡��"�;��"�� for the Implementation of the Montreal Protocol in <��=��¡��#��:��'��Association of Sri Lanka, under the patronage of the Q��$��`��

¤� ��"��#��$%��<��?<��=��@��="�serves in the capacity of Vice-President of the Rotary Club of Colombo North.

¤� ��'��<��?<��=��@��="��an Executive Committee member of the Association of Human Resources Professionals.

Fundamental Framework - Our Vision,

Mission, Values and Objectives

$��|�*��|��$��page 02 of this Report. As a company that is committed to creating shared value, we ensure that our business practices are aligned with our social goals. Such values are built into the operational style and structure of the organisation so that these areas routinely get evaluated in the process.

As a customer-centered company, we are always focused on enhancing customer satisfaction, convenience and service quality. By expanding our distribution channels, we make it easier for customers to get the products and services they need. We also upgrade and refurbish our retail outlets at least once in every six/seven years. As a dynamic and evolving company with customer lifestyle changes, we always focus on new market developments with changes to product range like introduction of digital media products, agro products etc.

We reward customers with loyalty programmes and provide customer guidelines, merchandising manuals and recipe books. Our Sanasuma extended warranty programme gives ��centre hotline to ensure that any issues are quickly directed to the relevant division so that a solution can be provided.

+�� the community, we have very close links with the society in which we operate. We work on the principle that we give something back by means of conducting many community ��'��"��

We believe in working closely with our suppliers in order to create shared values, for both parties. As detailed in the Customer and Supplier Relations section, we try to help our suppliers reach new standards and share our market intelligence with them in order to improve existing products and develop new ones.

Overseeing Economic, Social and

Environmental Performance

As the highest governance body, our Board of Directors ��formulation of our strategic vision and mission, setting our overall corporate policy, monitoring performance and ��

�� all aspects of the Company’s operations. Board members �� their responsibilities, which include strategy and risk management planning.

Both, Chairman and Group CEO ensure that good governance is practised through the organisation, seeing to it that both Executive and Non-Executive Directors ��;��|��professional advice from third parties such as the Company’s External Auditors and other professional consultants when deemed necessary.

Finance, Sales, Marketing and Commercial and Factory Directors who participate in the Board as Alternate Directors also provide additional information and expertise to the Board. Operational decisions are taken by our Executive Committee which meets every Monday. In addition, a Management Review meeting is held once a month.

$��our business units and divisions. Management Committees ��Heads who do the same thing for their charges.

We hold ourselves to internationally agreed standards, codes of conduct and principles. For example, our Annual Report includes this Embracing the Future and Caring for Posterity based on Global Reporting Initiative Guidelines.



Evaluating Board Members’ Performance

Our Board is constantly evaluating its own performance. Our interactions with stakeholders also allow us to assess our economic, environmental and social performance. In addition to critical self-analysis and stakeholder ��|� ��from externally - based professionals, such as our External Auditors and other professional consultants.

��"��&�� by the Singer Asia Board at Corporate Level as against the Annual Business Plan.

��!��'��K��Guidelines and our participation in forums, such as Annual Report Competition, we are able to get feedback on our Board’s performance. Other awards and ranking competition, such as SLIM AC Nielsen People’s Brand of ��T��+ ��|�:��'��=*�&��*��'��#��&|��"��"��&��|��useful external evaluations of the Board’s performance.

��#��in the day-to-day operations of the business, constantly ��¡��¡��?��@��&��"��¡�� ¡��external bodies, such as Chamber of Commerce, rating agencies, governmental agencies, industrial associations, etc., where direct feedback is received.

Our Response to Precautionary Approach

We understand the need to safeguard the public at large ��ensure that our customers and the community at large are informed of any potential risk that they may face as a result of our operations. We believe in anticipating possible health or environmental risks and being proactive, instead �� our furniture manufacturing plant from UV-based paints to water-based paints and very early adaptation to CFC free gas ��'��refrigerant was not promoted by any legal regulations but rather by our concerns about possible environmental risks.

Our voluntary partnership with the Central Environmental Authority in the National Co-operate E-Waste Management �� in safeguarding the environment and the general public. As detailed in the Environmental Relations section, we have led the way in collecting e-waste which may, one day pose a risk to the environment as well as to health and safety of the public.

We also strive to increase the recyclable content of all our products and packaging. For example, by sub-substituting natural recyclable materials like recycled paper for polystyrene in our packaging, we have been ahead of the regulatory requirements.

Commitments to External Initiatives

As noted earlier, we act in accordance with all the applicable ��<��'��the Global Reporting Initiative Guidelines. We comply with all environmental regulations that are applicable to our operations and often go beyond the statutory obligations to the environment. For example, we were one of the �� "��#��+��%��; ��have been the most active partner since then.

Our manufacturing division - Piliyandala Factory and Distribution Centres have obtained and conform to many K<$�^��]�{��~��

Stakeholder Engagements

We engage with all stakeholders including customers, ��|��|��|��|�depositors, Government authorities, suppliers, competitors and the community at large.

However, we do not engage with parties that do not uphold the principles that Singer practices, based on Our Code of Conduct. We do not entertain approaches by parties who are interested in illicit gains or who do not abide by our corporate values.

Our successful history over 136 years in Sri Lanka and ]�{�� is testament to our philosophy of engaging stakeholders on a fair and unbiased basis.



Stakeholder Method of Engagement Frequency

Customers Retail Channels, Call Centre, Ongoing

Advertising and Promotion

Employees Daily, Management and Divisional Meetings Ongoing

Initiatives by HR Division

Shareholders !��*��|��| +��|��T��

��T��'��"�� |�$��

Suppliers Regular Visits, Consultations, Workshops Ongoing

Community �� Ongoing

Government ��|�"��'�� Ongoing

Economic Performance

��&�� consumer durables market. However the Singer Group retained its position as the No. 1 Consumer Retaining Company in Sri Lanka.

��!��

��!��"��K�� '��}]^�� ][� when compared to the prior year.

Statement of Value Added

Category 2013 2012Rs. ’000 % Rs. ’000 %

!��;�!�� 27,400,128 27,150,656

Other Income 131,154 122,014

Less - Cost of Material and Services 20,565,286 20,227,570

Value Added 6,965,996 100 7,045,100 100

Distribution of Value Added

To Employees and Dealers

;�<��|�"��$�� 3,100,786 46 2,991,616 42

To Government

;�K��|��|��+�� $�� 1,914,567 27 1,709,162 24

To Banks, Deposit Holders and Other Lenders

- Interest and Bank Charges on Borrowings and Customer Deposits 1,260,156 18 954,965 14

To Suppliers of Capital

- Dividends to Shareholders 313,024 4 751,258 11

#�� *��#�� *�z��$��

Depreciation 231,336 3 251,617 4

'�� 146,127 2 386,482 5

Value Distributed 6,965,996 100 7,045,100 100



Impact of Climate Change

�� changing climate pattern on our performance in the year under review.

Government Assistance

Q��!��

Environmental Performance

��{�]�� {�� record, according to a new report from the National Oceanic and Atmospheric Administration. NASA, which uses a slightly ��|��2013 as the seventh-warmest year since 1880, tied with 2009 and 2006.

Last year was the 37th in a row in which global temperatures were higher than the 20th Century average, scientists said, and nine of the 10 warmest years on record all occurred in the 21st Century.

��K��;!��Panel on Climate Change stated despite national policies ��|�emissions of carbon dioxide and other greenhouse gases that are warming the planet grew 2.2% per year on average between 2000 and 2010, compared to 1.3% per year from 1970 to 2000.

Delaying action on global warming will only increase the costs and reduce the options for dealing with the worst ��|�� U.N. experts.

Around the world, there were 41 billion-dollar weather disasters in 2013, second only to 2010.

Singer Factory Integrating Sustainable

Eco Practices

��the entire humanity due to global warming. Singer as a ��mitigate the damage to environment. Protecting the environment is receiving our continual focus and we will institute all possible steps in the future too.

We preserve the lush environment surrounding the Singer Factory situated in Piliyandala and Ratmalana, by planting �� $��friendly practices such as waste management and energy and resource conservation.

Strict international guidelines are followed by our Factory ��which are used for production. All chemicals are stored in �� K��"#+�"��|��:��environmental audits that measure their compliance with environmental standards. As such, we scrutinise our operations to ensure that we uphold our responsibilities as an eco-friendly company. We have also implemented a system of accountability by charging our Operations and Factory Director with the responsibility of ensuring a ��

We have reduced air emissions caused by spray painting to a �� application stage of our manufacturing process by including water-based paints which are non-volatile and do not lead to toxic emissions. We also replaced all our conventional paint booths with water curtain paint booths.



Using our purchasing power, we instill our environmentally sustainable policies in our suppliers and manufacturers during onsite evaluations of their processes conducted regularly. In a situation of non-adherence to our guidelines, we either discontinue them as an approved partner or take instant measures to help upgrade their standards.

Saw Dust Collection

We continually focus on reducing, reusing and recycling saw ��|��|��|� ��;��|��;of-the-art machinery at our incineration and extraction plants, we ensure that saw dust is incinerated, pollutants and impurities are segregated and only clean air is releases into the environment. Waste materials are then channelled into water troughs, where they are collected, treated and disposed in a proper manner. We have also installed a separate dust collection system in our sofa factory that uses ��

In order to recycle the saw dust that is disposed at our factory in Piliyandala, we initiated a new collaboration with a third party organisation that supply saw dust for boilers. Our Factory has two chambers to collect saw dust prior to handing over to the supplier who voluntarily collects the saw �� |� ��helping a third party but also optimise the use of waste from our manufacturing processes.

National and International Awards Received

In recognition of our immense contribution and unstinting support to reduce Sri Lanka’s carbon footprints, we received an e-Waste Management Award from the Central Environmental Authority.

Training and Educational Programmes for the Employees on Environmental Protection, Eco System Services and Conservation

Theme of the Week��<��and customers with additional background information on �� %��of the Singer Group. Singer employees use the theme of the week to educate themselves and implement best practices into their work routines. Our messages on sustainability are ��]��

��<��!��<�� ¡��the other on e-waste management. A better understanding about sustainable purchasing choices and product usage will ��;��

e-Waste Collection Points Now Island-WideSinger Group has earned the reputation as a highly respected and responsible distributor of electrical appliances in the ��|�� ; ��campaign organised by us. Easy access was facilitated to the public, through the vast network of Singer outlets. We brought our e-waste campaign closer to our customers by placing e-waste collection bins at all Singer Plus, SISIL World, Singer Mega, Singer Home’s Showrooms and Singer <��"�� =��?��=@��|��'��?�'@��|��|��and billboards we created awareness about the e-waste collection campaign.

Biodegradable PackagingSinger Factory has already commenced using corrugated cardboard instead of regifoam as packaging material for our water pumps. Further research and planning are being carried out to expand the use of biodegradable material in our Factory. Additionally, we have strategised to use shopping bags that are made out of biodegradable materials by next year.

Reducing Waste

Continuing e-Waste Management Leadership��|��<��!�� operational responsibilities to sign a Memorandum of Understanding with the Central Environmental Authority to address the issue of e-waste management. Accordingly, we become one of the few Sri Lankan companies to take on the responsibility of managing e-waste. Under the guidance of the Central Environmental Authority, the Singer Group secured a license that follows the UN BASEL Convention Regulations in collecting, transporting and storing e-waste ��|� �� !�� =��!��; �� co-operation with e-waste recyclers in Singapore, China, <��`��world’s carbon footprints.



��;��Sri Lankans about the opportunity to dispose of their e-waste through the vast and conveniently located Singer �� |��;��|� �� <��=��&��|��;��;��; ��campaign for all who contacted the dedicated e-Waste Day �� advertising campaign about this initiative. Further, as a new �� |��<��

Trade in Offers to Reduce Carbon FootprintAs the largest consumer durables retailer in the country, we take our responsibility very seriously. We maintain long lasting and continuous relationships with our customers. ��|� ��|� �� <��hand over their old electrical appliances for more energy-�%��reduce the impact on carbon footprints.

Pioneering R600a Gas RefrigerationUsage of CFC gasses were banned due to their negative ��":"��refrigerants were phased out by the regulators, we successfully converted all refrigerators manufactured under the Singer Group to R134a gas in 1997. Subsequently, it was decided that 100% organic R600a gas would be thefuture of refrigerant gasses, as the global warming potential for R134a gas was considered to be too high. Although, the conversion to R600a gas was to be made compulsory ��{��|��<��"��'��?=��@��="� ��manufactures refrigerators, took on the responsibility early and invested in the technology needed to manufacture R600a gas refrigerators.

In 2013, Regnis introduced the SISIL eco range complete with the R600a gas capability which was 100% environmentally safe, guaranteeing a 20% reduction in power consumption. Extensive research and customer know-how went into creating the SISIL eco range of refrigerators which also includes the Nutri Seal feature that prevents unpleasant ��tubing that ensures lifetime durability and low maintenance.

Singer Now Represents Global Leaders of Sustainable Home AppliancesSinger now represents Arcelik, the undisputed leader of ��|�'��<��Africa. It is also the third largest company in its sector in #��!�� +�� ¡�‘Respects the Globe, Respected Globally’. Arcelik’s aim is to provide a solution within the framework of sustainability, orienting the production and distribution of its brands towards climate change and protection of restricted ��!��:��<��!�Ovens, Refrigerators, Washing Machines and Cooker Hoods that come under the Arcelik umbrella are now distributed through the Singer Group. Grundig is backed by 67 years of German heritage of excellence. Beko is the leading brand in ��`��increase in market share in Western Europe in 2012.

Waste Water Treatment Reuse and Water Conservation<��?<��=��@��="�� ¡�� |�� programme is necessary. We stress the importance of water conservation to all our workers, working in the factory and ��%��

Singer Commitment Toward Education

¥#��+��Bloom Supporting the development of education in Sri Lanka among children and youth has proved to be an extremely gratifying endeavour for Singer. We have successfully forged strong relationships with rural communities as well as ��|��%�� the education sector in the country. We believe education is one of the greatest gifts that one can give to society. We are especially proud to use our vast network to take the gift of education to rural Sri Lanka in the hope of building a society that consists of educated and accomplished individuals.



Ongoing ProjectsIn commemoration of our 160th anniversary in year 2011, ��focused on building educational infrastructure for needy schools across the nation. A total of 160 schools received our contributions in 2011 followed by 100 schools in 2012. In 2013, we continued our commitment by identifying needy schools and systematically supporting them by building infrastructure and providing furniture, appliances, stationery, musical instruments and other materials.

Examples of Some of the Singer Schools Projects:

¤� +�� Udakandawala School in Melsiripura.

¤� ��<��$��books and stationery to the Madawala School.

¤� �� hall of the University of Colombo.

¤� ��+J��`��"��

¤� ��the students of the Dharmarama Model Primary School.

¤� ��+��<��&��*��donation of products and funds to renovate the Home Science Room.

¤� <��|��a donation of a refrigerator and library equipment.

¤� ��Meemure MV, Ududumbara, enabling the youth of the area to successfully hold sports events.

¤� ��*��'��<��<��Notebooks to each of the top nineteen high scorers of the recently completed Grade 5 Scholarship Exam.

Singer Sri Lanka Fashion Academy

��<��<��=��:��+��;��organisation which celebrated its 58th Anniversary recently. ��+��<�� and provides training to promising local designers.

An exhibition and sale presented by the students of the Academy was held at the J.R. Jayewardene Cultural Centre.

Empowering the Differently Abled

We set up a teaching unit at the Deaf and Blind School in Ratmalana. A total of 20 students have since enrolled ��J��accommodate their special abilities and teach skills that would enable them to secure employment and become ��

¤� ��=��+��#�� <��Fashion Academy.

¤� +��|�~{��!��received valuable information on pursuing a career in tailoring at a programme conducted at the request of the ��'��:��

¤� +��;�� assist teachers on meeting the syllabus criteria of the ��<��#�� Janadhipathi Balika Vidyalaya in Minuwangoda with the co-operation of the Director for Home Science Education in the Minuwangoda Zone.

¤� $�� education were organised on a weekly basis at the John Amaratunga Foundation.

¤� $��J��+"�+��Q!$|��; �� workshop was conducted for 12 individuals from the �� %�� business of their own.

¤� ��+��<��:��+��+ ��:��Show was held at the Bishop’s College Auditorium with the participation of approximately 700 attendees ��|��|�<�� |��|��%�� |�� "��!�� "#$��<��?<��=��@��="|�*��+��



Other Educational Programmes

¤� ��<��|�'��|��|��=��$��+��+��|�*��*��<��|�=��'� ��<��

¤� ��:��*��Exhibition which is an important event in the educational calendar in Sri Lanka.

¤� �� <��#�#��#��^��guidance to both parents and students on educational and employment opportunities. We contributed Rs. 1.67 million towards this event which was held at "��

¤� ��'��}�|��>;�� +��*��{�]��organised by the Junior Old Student Association of Ananda College.

¤� "�� :��K��"��+ ��"��`��

¤� �� !��the British School, Colombo.

¤� !��<��&�"��‘Rhythm of the Joes 2013’ event.

Singer Sri Lanka’s No. 1 Sports Promoter

We are Sri Lanka’s largest sports promoter of sports. �� support. For over twenty years, the Singer brand has been interwoven with sports in Sri Lanka. During the past years, we have made over Rs. 1 billion worth of investments towards championing annual sports events as well as uplifting sportsmen and women and developing the sporting infrastructure in the nation.

Rugby Singer Schools League Tournament Support - We have ��<��=��Sri Lanka’s largest schools rugby event since year 2004. We provide the necessary funds for the participation of 90 schools which spans over 300 games across 3 months and is organised by the Sri Lanka Schools Rugby Football Federation. In addition to sponsoring the tournament, we donated amount of Rs. 8.2 million for infrastructure ��J�� to support 71 schools to prepare for the tournament.

Sponsoring the Bradby Shield Since 1989 - ��<��=��&��prestigious, event featuring two of our most renowned ��{��

Club Rugby��;��<��"�� For the last 13 years we have made donations that have assisted the Club to renovate scoreboards, build new pavilions and so on.

We also maintain the scoreboards of rugby stadiums in Nittawela as well as pavilions of the Royal Sports Complex and the Pallekale Stadium. We have signed advertising contracts with several sports venues, such as the Havelock Sports Club, Royal College rugby grounds and St. Peter’s College rugby grounds which we fund annually to maintain/upgrade the infrastructure.

Motor SportsWe sponsored the following races during the year:

¤� Foxhill Motor Races - We have co-sponsored the Foxhill Motor Races for the last 10 years.

¤� Sigiriya Rally Cross - We have been providing sponsorships to the Sri Lanka Air Force to organise the Annual Sigiriya Rally Cross for the past 3 years.

¤� % � $�� - We sponsored the Walawe Super Cross organised by the Sri Lanka Military Engineers for the 2nd consecutive year.

¤� Gunner Super Cross - We have been sponsoring the Gunner Super Cross since inception, 8 years ago.

¤� Cavalry Super Cross - We co-sponsored the motor race organised by the Sri Lanka Armed Forces.



Cricket��*"+��+&�� players is considered as one of the premier limited-overs cricket tournaments in the country.

Our retail network maintains close relationships with the communities in which they operate. Cricket is a sport close to these communities. We also sponsor a number of regional softball tournaments island-wide, as we believe these tournaments provides an opportunity to young cricketers to showcase their talents to Sri Lanka Cricket Selectors.

Sports Infrastructure DevelopmentWe maintain scoreboards at international cricket venues such as the SSC, Colts, P. Sara Stadiums. We also maintain the scoreboards and dressing rooms at the Mercantile Cricket Association grounds and the Royal College Cricket grounds. Further, we have signed advertising contracts with a number of sporting venues such as the P. Sara Stadium, SSC and the Royal College Cricket grounds.

We sponsored the maintenance of the Nugawela Central and Walala Ratnayake Central grounds for their annual rugby tournament.

HockeyWe have been diligently working to promote hockey in Sri Lanka for the past 30 years. We strive to uplift the ��the country. In this regard, we have been sponsoring the *��+&��]^z~��year, we extended our support to the Royal College Hockey Club by sponsoring the prestigious Blue and Gold Hockey 7s, which we have been sponsoring for the last 11 years. Over 50 schools island-wide, participate in this tournament.

BilliardsWe sponsored the 60th National Billiards Championship organised by the Billiards and Snooker Association of <��=�� {�� for honours.

TennisWe support the development of tennis through our ��"��+��'��

BadmintonWe extended a sponsorship for the Inter-Schools Under 19 ��|��'��"��|�"��

Reducing Pollutions

During year under review, we have introduced ‘Fine Filtration System’ for machines which generate high volume �� being released to air.

All the wooden dusts generate from the operations have being given to the outside party to make wood briquetting which in turn use for industrial boilers.

Labour Practices and Decent Work

At Singer we believe that empowered employees are the best employees. Our ability to operate successfully and continue the development of our business is closely dependent on our employees. Having been in the business for over 136 years we believe true sustainability comes from nurturing employees, guiding them to reach their potential and rewarding them equitably for their hard work.

It is not a surprise that many of our employees have been working at Singer for more than two decades, growing in step with the Company. We are seen as one of the Sri Lanka’s best employers, a validation of our dedication of developing careers and lifelong skills, our emphasis on equal opportunity, merit-based professional culture and our eagerness to resolve work and private issues in a mutually ��



Age Analysis

Description 18-28T��

29-39T��

40-50T��

above 50T��

Total

�� <�� Management – 7 20 16 43

Middle Management 2 40 40 11 93

Junior Management 37 100 25 8 170

Executive 3 7 – – 10

Non-Management 471 527 257 66 1,321

�� 513 681 342 101 1,637

(1) Total Number of Employees as at December 2013 and as at December 2012

��Q��#��]��{�]{ 1,475

��Q��#��]��{�]� 1,637

(II) Number of Employees Dismissed during 2012/2013 and the Number of Employees Retrenched through VRS None

Employee Benefits

�� employees assuring them, not only of their happiness, safety and well-being, but also the well-being of their families. !�� $�<�� follow to ensure our employees are comfortable in their working environment:

Ergonomics"��of time at work, we ensure a conducive work environment. As such, we look into aspects such as work space to employee ratio, air-conditioning, noise pollution, desk and chair alignment, sanitary needs and adequate space for meals and relaxation.

Professional Subscriptions+��|� we pay subscription fees to professional bodies on behalf ��*��this scheme.

Attracting the right talent and retaining the talent within ��K��talent, we have initiated several brand building activities and tied-up with State and Private Sector institutions to conduct awareness programmes. In order to attract

youth into the organisation and provide them with an understanding of our brand and business practices, policies and vision for the future, we use the Internships Programme, ��"<'��|��and foreign degree programmes within the country and ��?"+>"K*+@��included students from Finance, Marketing, Supply Chain and Human Resources Management Degrees. Interns are provided a comprehensive orientation to the operations of the organisation and in-depth practical training within their specialised areas. We are also focusing our attention on evaluating remuneration packages to be on par with industry norms. With respect to retaining talent, we will be introducing new rewards schemes to recognise ��:�� the shop assistants who scored highly at product knowledge evaluation programmes.

Death Donation In the event of the death of an employee, his/her family will receive a sum of Rs. 50,000/- in addition to six month’s salary. In the event of the death of an employee’s spouse, child, parent or unmarried sibling, the employee will be ��'��{}|��>;��:��contributory fund maintained by our permanent employees.

Medical Benefits We reimburse medical expenses of our employees incurred up to predetermined amounts calculated according to ��K��amount, the employee and the Company share the balance equally. In some special cases, we fully reimburse all medical expenses. We also provide hospitalisation and $��immediate family members.

Accident Cover �� work exposes them to a greater risk of accidents, either at the workplace or due to extensive travel.

Travel Expenses We provide several facilities to employees who engage in ��%��|��|�transport allowances and reimbursement of travel expenses. #�� responsibilities, as well as the respective grade.



Discounted Sales +��<��?<��=��@��="��payment schemes.

Lodging ��"�� %��

Housing Loans #�� "��cover the initial expenses of building a home while they ��

Distress Loans Distress loans are extended to employees in case of emergencies such as a sudden illness, a death in the family, ��|�urgent home repairs or a family wedding, etc.

Vehicle/Motorcycle Loans ��are eligible to apply for interest-free or low-interest loans through the Singer management in order to obtain a vehicle.

Educational Aid Scheme <��?<��=��@�� employees with their studies.

]�� "��'��{{}|��>;|��exchange for which the employee must serve Singer ?<��=��@��="��"��;��;�graduate studies.

{�� "�� ;��particular course fee on the successful completion of the ��

Sports and Recreational Facilities

Singer Factory Carom Tournament

��<��:��+��"�� ]��{�]��

Inter-Divisional Badminton Tournament+��^}��<��$%��factory participated in the Singer Inter-Division Badminton ��|��{~��{�]��

Colombo Service Centre Get-Together��+��"��<��"��;��in two batches on the 24th March 2013 and 28th April 2013 at the Ambalama Holiday Resort in Hanwella.

Group Volleyball Tournament

!�� {^��<��2013 at SSL Factory Complex. SSL factory employees emerged winners.

Inter-Department Soft Ball Cricket Tournament

K��;��"�� ]~��+��{�]��Q""�!�� of all employees from across the country. Singer Finance ��*��&�"�� +��<��securing Runners-Up Place. Female title was won by Singer Financé with SLMO ‘B’ came second.

Kids Art Competition

��+��"��&��#��&�"��10th November 2013. Over 150 Children participated in age categories of 4-6 years, 7-9 years and 10-12 years.

Mercantile League Netball Tournament

Singer Ladies emerged Runners-up at the Mercantile Ladies Q��{�]��"&�

Mercantile Athletic Meet

Over 50 employees participated at the 30th Mercantile Annual Athletic Meet 2013 which was organised by the Mercantile Athletic Federation and was held on 21st and 22nd September 2013 at the Sugathadasa Stadium.

Gents Excursion�� '��]�z��their excursion from 14th to 16th June 2013 and the second ��]}��]{�� 14th July 2013.



Ladies ExcursionA total of 107 female employees and 40 of their children were treated to a two-night stay from the 17th of May 2013 at the Dickwella Resort.

Singer Finance Excursion+��]]��<��:�� "�� {��{}��+��{�]��

Singer Got Talent�<��!��&� ��'��a forum to strengthen employee relations through the ��|��way for employees to showcase their talents. Altogether, 87 employees participated in solo, duet and/or group performances at this event.

Singer Poson Udanaya�� {]��|��<��$%��+�� three-part programme which also included a Buddhist ��!��of 40 Singer employees including senior managers and the ��

Toastmasters Young Talent Speech ContestWe fund the international membership and activities of ��<��<��=��"��|��"��T��<��"��&� �� open to employees aged 25 years and below in April and May {�]��$��"�� <��Club’ status for the year 2012/13.

New Year at Singer��Q� �T�� <�� prayers and blessings of all religions.

Singer Sri Lanka Christmas Party <��?<��=��@��="�"�� ~��December 2013 at the Waters Edge, Battaramulla with the participation of over 1,800 employees and their families.

Sinera Magazine��<��*�� |�company bulletins and images is freely distributed among <�� a year, creates awareness about the activities of the Group. We also started the Sinera Facebook page where an ��+��|�365 employees are active members of the facebook page.

Collective Agreements

We have signed three separate Memorandums of Settlement ?*$<@� �� >�� to salary revision:

¤� "��K��`��"��Branch, applicable to clerical allied and technical grade employees.

¤� "��K��`��Q��;"��Branch, applicable to manual workers, Ex: drivers and packers.

¤� K��;"��#��`��|��workers attached to our factories.



In addition to signing Collective Agreements, the management meets with branch unions to discuss any concerns and provide satisfactory solutions. Singer ?<��=��@&�� disputes arising in the work place.

Staff Strength

Description 2013 2012 2011 2010 2009

�� <�� Management 43 42 41 38 31

Middle Management 93 92 63 58 63

Junior Management 170 146 145 133 135

Executive 10 – – – –

Non-Management 1,321 1,195 979 918 887

�� 1,637 1,475 1,228 1,147 1,116

HR Policies and Procedures

We maintain an open door policy to encourage all levels of employees to freely express their views and give ��

We believe in empowering our employees. Empowered employees care more about the success of our Company. �� |��ownership in our goals. In fact, many of our goals become their goals. Empowered employees require less supervision, develop outstanding business ideas, work smarter and ��%��|��;� ��extremely loyal.

Study after study has shown that employees would rather work somewhere they feel happy and appreciated than �� &�|��#�� their work environment has on quality of life, and when they feel important - even needed - they’re willing to compromise on salary without comprising performance. What does all ��¦��&�� employee and customer service related hassles.

Occupational Health and Safety

Safety and Welfare CommitteeConsidering the wide composition of our Group and the diversity of activities, we have instituted several pro-active measures as well as keenly researched reactive measures to ensure the highest standards of occupational safety and health. Our employees are considered the backbone of our

��|�� measures, including hygiene and accident safety practices that are implemented by our Safety and Welfare Committee. Its members are representatives of the entire Company ��J��responsibilities include -

¤� '�� safety of employees.

¤� ��

¤� ��and handling of equipment.

¤� K��

¤� #��

¤� $��

Training and Development

Our Training Philosophy Finding new leaders is critical to the successful growth �� impacted by the numbers of leaders we recruit. Following are the steps we adopt though the concept of multiplying our leadership base:

Catch the Vision of MultiplicationIt’s hard to sell something you don’t believe in.

Be IntentionalT��Multiplication must be a part of your strategy and there must be a system of leadership recruitment.

Start EarlyReplace leaders before you need them.

Invest in Your Own Personal GrowthT��&�� &�� aren’t going.

Humble YourselfLeaders must not to be afraid that new leaders could lead better than them. Allow people to shine under your leadership and it will only advance your ability to lead. �� &�� in doing so and if they trust your integrity.



Share Responsibilities Early�� more ownership you give to people the more they will be motivated to participate.

Identify PotentialLook for the good in people. What do they have that attracts people to them.

Create an Environment Conducive to Produce LeadersLeaders don’t develop well under a dictatorship. If people are afraid to have an answer under your leadership for fear of being wrong, they less likely to try to have an answer.

Recruit ��&��J��recruited.

��

Lead for Life ChangeSome people will experience their greatest life change only when they are leading others or have some sort of responsibility for leadership. Nurture potential leaders knowing that part of their maturity will be that step of leadership.


Identifying Skills that will be Required

for the Future

We have adopted a two-pronged approach to identify gaps in our future-readiness and determine the level of training our employees need in order to continue to excel.

Performance AppraisalPerformance Appraisal, we conduct individual performance ��J�� line manager to assess the given employee’s strengths, weakness and training and development needs, which are analysed and then incorporated into the training plan for the upcoming year.

Annual Training NeedsDivisional Heads at Singer are required to give a detailed accounting of their division’s training requirements in the third quarter of the year. After an analysis of these ��J��|��implements tailor made programmes to address training needs, either through external training that send individual employees to seminars, conferences and technical sessions or through internally conducted programmes that train groups of employees in particular skill sets.

Investment in Training and Number of People Trained

Category *��

Product ��

Operational ��

External �� Total

K��?'�@ 2,432,301 1,312,039 1,541,317 1,066,727 6,352,384

No. of Programmes 28 41 72 46 187

No. of Participants 1,056 871 2,505 155 4,587

Q�� 210 294 350 308 1,162

K��?'�@ 2,303 1,506 615 6,882


Department Heads are also responsible for assessing skill shortages by studying his or her department’s annual performance appraisals and considering the skill requirements needed to successfully navigate future ��|��

Initiatives Taken by the Company for the

Progression and Career Development

��|��|��training, external training, operational training and product ��;��;��;��!��&��$%��Q��* �� {��at a given time. Field training is conducted as per the convenience and requirement of the trainees and trainers. Singer has also invested in training infrastructure at its seven regional centres, which can accommodate about 25 employees at a time.

External training is conducted at the British Council, Sponge Learning, IPM Sri Lanka, Ceylon Chamber of Commerce, Employees’ Federation of Ceylon, CIMA <��=��|�*��'��|�"KQ#"��facilities. Our HR division arranges customised training ��J��of each employee. Programmes include areas such as motivational techniques, creative thinking, customer care, marketing and networking.

Singer Retail Academy In order to develop our most important asset ‘our people’ the Singer Retail Academy was established in 2009. Since ��|�� ¡�'��|�"��"��<��|�<��Management, Service Centre Administration, Accounts ��|�'��K��+��|�'��*��or Retail Area Management.

Succession Plan (3 x 3 x 3) For every management position, this initiative aims at select up to 3 employees, identifying 3 areas of development and grooms them over a 3-year period to take up critical management roles when they become open. As part of our Development and Succession Programme, the 3x3x3 ��*��|��Senior Managers, Middle Managers and selected Junior *��

��each development programme.

Outward Bound Training ProgrammeAn outward - bound programme was conducted for 29 managers across divisions in the month of April with the collaboration of Sri Lanka Business Development Centre ��$�� well-accepted by all participants.

Finance for Business Managers Programme��:��*�� <��was conducted again this year from the 14th to the 18th of *��}�*��!��+�� ;�� areas of overview of Financial Management, Finance in Marketing, Finance in Production, Finance in Working Capital Management, Finance for Field Supervision and :��- Mr. Hemaka Amarasuriya - Chairman, Mr. Priyath <��;�:��|�*��=��T�� ;�!��:��*��|�*��*��;��'��*��|�*��<��'��|�;��*��&�;�<��=��*��'��<��<��*��

Development Programme for District Managers A Development Programme is being conducted for all ��*��{�]��programme in to develop the district management layer on their functional areas as well as to build their capacity to ��areas such as Capacity Building and Management Excellence, conducted by Mr. Prasanna Perera, Presentation Skills, Advanced Business English and Business Etiquettes spread �� by the participants.

Sales Training+�<�� familiarisation was design and conducted for the Colombo North area SISIL South and Colombo Zones during the last J��{�]��introduction to Singer and an awareness session about the career progression options available at Singer, in view of ��will continue into other areas in 2014.

Training Workshop on Performance Appraisal�+�� managers at Singer about the performance appraisals and this programme covered many aspects related ��$��<��|�Performance Measurement, Performance Ratings,



��:��|�� through performance appraisal interview. At the workshop many improvement suggestions were brought in by managers with respect to the performance appraisals.

HR for Line ManagersA programme covering various aspects of Human Resource *��#��|��|��|�=��*�� line managers and the programme was conducted by *��?+��!��#��:��"��@��*��?<��K��'��+��>��<��|��#��:��"��@��

Etiquette Programme for LadiesSinger has been acclaimed as the ‘Number One’ consumer durable brand in Sri Lanka for the past nine years and is a strong employer brand taking into consideration the number of awards being won across number of areas. We at Singer believe that the organisation is a representation of its people. We need all our employees to be Brand Ambassadors of our prestigious organisation adding to its professionalism. As such a half-day programme on Personal Grooming and Work Etiquette was organised through '��:��+��^��employees of Singer Sri Lanka and Singer Finance on the 25th of October 2013. It was a very interactive session and was greatly appreciated by the participants.

Sharp Product Training<�� <��<��|��*��+�� which are sold in Singer outlets. Selected Singer Plus shops and all of Singer Mega outlets were trained in the month of July, with the help of the foreign trainers from Sharp "�� interaction where the participants were able to grasp latest ��;��K��&� with ease.

Another training programme on Sharp products was carried out in the month of September covering selected locations of the Singer Mega, Singer Plus and SISIL World Channels.

Training Programme on Samsung Products �� <��refrigerators and provided a model by model training for the ��<��Plus, Singer Mega and SISIL��locations where selected taking into consideration the sales performances.

Singer Toastmasters Club<��<��=�� years ago, has now reached Select Distinguished Club status. ��"��skills and leadership skills of employees. Club members and employees were provided the opportunity of speaking in front of diverse audiences through the speech contest held by the Club. Members had the opportunity to form networks within the Sri Lankan business community through �� K��speakers of repute has increased the quality of meetings ��"��on a CSR activity by organising communication skills classes for students of Sri Saripuththa Maha Vidyalaya, an under privileged school in the neighbourhood.

Card Function and Treasury Operation Training +��operations was carried out for Branch Managers, Approved Dealers and their Assistants working in Badulla, Ampara, Batticaloa and Polonnaruwa Districts.

Hire Purchase Management A training session on Hire Purchase Management was conducted by SAM Field Credit East for Singer Shop Assistants in the Badulla District.

Product Training Given below is a summarised list of product training ventures that were completed in the past year:

¤� ��<��;��;<��'��=#��*��"��T��*��from Hitachi, Home Electronics Asia Ltd., Singapore.

¤� #�� and Grundig branded home appliances conducted by ��%��

¤� �� new recruits of all sales channels in the Singer Plus, SISIL World, Singer Mega and Singer Homes.

¤� <��*��"��;<��<�� recruits in the Ja-Ela Singer Mega Showroom.



¤� +�<��customer service representatives of the Singer Plus "��<K<K=�"�� held in January, 2013. A similar workshop was held for <��<��+��March 2013.

¤� +��^��<��=�� :��distributed through Singer Channels.

¤� +�� K��Domestic Sewing Machines for the SISIL Employees based in the Northern Zone.

¤� <��<��<��<��<��=�� ;'��|�+��;K�;$��"|�=#��|��"��|��Induction Cookers, Mixer Grinders and Microwave Ovens.

Singer’s Digital Media arm is growing rapidly and in order to maintain an excellent standard of service which is expected from Singer employees, a Digital Media Workshop was held for Singer Customer Service Representatives in the Negombo District and SISIL Channels in the Central Zone. �� such as cameras, laptops and mobile phones as well as customer-seller role-plays, product demonstrations and team building activities. Market surveys were utilised to educate the Branch Managers on the competition within the sector.

Mega Quiz 2013 All Singer Mega Showroom employees participated in ��*��{�]�� knowledge of products coming under their purview. Each team representing a showroom was graded according to ��!��:�� best two teams which resulted in a tie between Singer Mega Maharagama and Singer Mega Wattala.

Ultimate Product Demonstrator Competition �� <��and SISIL Channels throughout the island. It was set-up to evaluate product knowledge, competitor awareness, selling ��|��competition has been conducted in the Sabaragamuwa and Eastern Provinces.

Graduate Training<��<��=��<��=��;J�� <��reading Marketing, Finance, Production, Supply Chain, Human Resource and Management Degrees are provided the opportunity to follow an internship programme within the Singer Group. Students are placed in a suitable capacity within the organisation and given exposure with comprehensive orientation and in-depth practical training.



Service Analysis (Years)

Description Above 20

16 - 20 11 - 15 6 - 10 Below ��T��

��

�� <�� Management 14 12 6 8 3 43

Middle Management 19 24 11 25 16 93

Junior Management 8 12 10 59 81 170

Executive 6 4 10

Non-Management 70 123 60 226 842 1,321

�� 111 170 86 324 946 1,637

Service Awards

��<��<��+ ��dedicated employees who have made an outstanding contribution to the Group for a long period of time. �� ]��+��{�]��<��=��Foundation Institute in Colombo 7.

"��T�� No. of Award Winners

}�T�� 108

]��T�� 21

]}�T�� 22

{��T�� 22

{}�T�� 5

��T�� 2

��T�� 1

181

Gender Diversity

Description Female Male ��

��<��*�� – 43 43

Middle Management 8 85 93

Junior Management 25 145 170

Executive 2 8 10

Non-Management 238 1,083 1,321

Total 273 1,364 1,637

Description 2013 2012 2011 2010 2009

<�� [ 10.98 20.10 7.06 2.78 (2.70)

�� employee Rs. ’000 15,568 17,248 17,924 13,974 10,654

�� per employee Rs. ’000 319 830 1,064 583 100

Asset per employee Rs. ’000 15,026 14,522 14,213 11,232 9,725

Cost per employee Rs. ’000 1,855 1,891 2,064 1,616 1,414

All locations stipulated by labour laws are provided for female employees.

Human Rights

Grievance Handling and Sexual

Harassment Policies

�� ;��the right to forward their grievances and dissatisfactions to the management and obtain a fair hearing. Our sexual harassment policy makes note of the distinct nature of a claim and provides disciplinary measures depending on the degree of sensitivity of the matter at hand.

Code of Business Conduct

All key and senior managers are bound by our written Code of Business Conduct which is an agreement signed as part of their written Contract of Employment. As per the agreement the signatory is responsible to comply with the Code and also ensure employees reporting to him/her also comply with ��"��"��"��to refresh their knowledge on the contents and update themselves on new clauses and amendments to the Code.



Whistle-Blower Policy

��;�� any employee to make a written or verbal complaint on any experience or suspect of illegal or unethical employment or business practices exercised by a colleague in any capacity in the governance hierarchy. All employees are taken through ��&��and anonymity upon induction to the Group.

Group takes necessary actions to prevent corruption or illegal activities and management takes necessary actions on above where it implemented for Whistle-Blower Procedures.

Fostering Human Rights and

Equal Opportunity

Moving the Community Forward

We are deeply embedded in the hearts and minds of all Sri Lankans, to an extent that is perhaps unmatched by any other local company. We understand that we have a responsibility, rooted in both business sense as well as in a strong compassionate sensitivity, to uplift the quality of life in the country. As such, we take our standing as a member of the community, and our ability to make people’s lives easier, very seriously, a commitment that is demonstrated, for ��|��"<'� �� |� ��running concurrently. In order for the business to be truly sustainable, the community must be continuously uplifted.

+��<��=��&�%��connection to Singer, the Company receives many requests from religious, educational and other institutions as well as appeals from everyday people. Sri Lankans know that Singer is a compassionate and benevolent company and, as such, often turn to it in their moment of need. Our island-wide reach means that we are present in some of the more remote areas of our country, giving us a unique ��fortunate countrymen and women. It is also important to note that our employees are often the biggest champions ��;��and are empowered to propose solutions to their own community’s needs.

Shared values vs Corporate Social

Responsibility

�%� ��$��*��*��$��:�$� ��$��*�� *��$��*�� *�� /��- Albert Pine

We have mechanisms in place that encourage employees to participate in CSR activities from inception to completion, ��J��

All employees are encouraged to submit a written proposal ��"<'��|��|��#��have the freedom to propose a CSR activity that is a ��;��business processes.

We have found that philanthropic responsibility, which is ��|��on the work attitudes and behaviours of our employees. Providing the necessary resources to enable employees ��"<'��"��and passionate employees. Branches and departments ��"<'�� CSR activities have been a boon to team building within the organisation.

It is the responsibility of respective department or branch ��"<'�� We also solicit proposals from our community members. ��<��"<'�"��|��"<'��"��maintain best practices when dealing with the community. It is also the responsibility of the CSR Committee to ensure that CSR activities encompass the entire spectrum of economic, employee, customer, community and environmental concerns.



Philanthropic Projects Undertaken

Support for our Tri-ServicesWe continue to assist men and women who protected us during the war and brought about peace to the nation. ‘Abimansala’ is a housing scheme that was initiated several years ago, to provide disabled soldiers with custom-built ��sponsoring a villa each for the ‘Abimansala’ I and II schemes. Once again this year, we donated Rs. 5.25 million to build a special needs villa for a disabled-solider as part of the ‘Abimansala&�KKK��

We support the Seva Vanitha Unit by extending funds to �� of the families of Sri Lankan Army Personnel.

Supporting and Sustaining Our

Cultural Events

Religion and culture are closely ingrained into the Sri Lankan society. We are happy to support the religious and cultural events that are highlighted in the social calendar of Sri Lankans, particularly in rural communities. Our goal in sponsoring such events is to spread goodwill and cheer in diverse ethnic, religious and cultural communities in the island.


¤� K��<��=��&��traditional customs we once again supported following world-renowned processions:

;�� <��*��

- Colombo Nawam Maha Perahara

;�� '��*��

- Bellanwila Esala Perahara

¤� <��Vesak Dansal�� ;��|��|�+�� |��*��+��'��]�million was made to the ‘Buddha Rashmi’. National Vesak Festival 2013. Further, Rs. 250,000 was donated for the Dehiwala/Mt.Lavania Muncipal Council Vesak Festival.

¤� <��*��'��SISIL outlet in Badulla contributed to the Ifthar religious Muslim programmes of the area.


¤� ��Bak Maha Ulela festivals across the country including ��|��|��|�*��|��

¤� <��following religious centres:

- Sri Devananda Dhamma School

;�<��<��|��

- Sri Sudharma Daham Pasala

- Sri Sudharmarama Purana Viharaya

Supporting Entertainment and the Arts

��communities together through common mediums such as art, song and dance. We have always been a keen sponsor of events that provide opportunities for Sri Lankans to showcase their talents, particularly those that encourage young talent to blossom. Following are a list of events that we were happy to be a part of, not only through sponsorship ��showcased:

¤� +�� '��Concert’ event organised to raise funds towards children ��

¤� +��'��]��|��>;� �� show that was organised by the St. Mary’s Church in aid of Mission House.

¤� �� the Earl’s Regency Hotel, Singer Mega, Wattala, and ��T��<�� <��*��|�Duplication Road.

¤� ��<K<K=��+��#��|�� 7th consecutive year is a much looked forward to event by many of the children who are thrilled to be recognised ��

We also provided sponsorships in order to stage the following musical and entertainment shows in Sri Lanka:

¤� ��;�Tharu Dilena Reyak III

¤� :��Q�� !��

¤� ��"��!��*�� College Auditorium

¤� ��<��"��

¤� K��!��"��

¤� *��{}��+��'��

¤� z�&�"��*��

¤� *��+��<��

¤� ��=��

¤� ��#��

During the year, we also supported the following exhibitions:

¤� �*K"��<��:��

¤� "��<��

¤� Dayata Kirula Exhibition

¤� ��<�� #��

¤ Kadella�{�]��

¤� "��

¤� <��{�]��

Supporting Professional Bodies

As one of the most prominent companies in Sri Lanka, we have a duty to contribute to the overall development of our industry. We sponsor a number of award events, details of which can be found below:

¤� ��"��K��*��;�"K*><=K*� Joint Forum

¤� ��K��"��+�� Sri Lanka - CA Sri Lanka Members Night

¤� "��"��K�� Management Accountants

Featured CSR Project - Thirst for Life

Further strengthening its commitment to Sri Lankans’ quality of life, Singer decided on a number of initiatives aimed at building a more sustainable healthcare infrastructure in �� Sri Lankan customers, the Company is able to identify the most pressing needs of the communities in which it is active, ��|��|��=��&��|��|� ��'��]��>;�� |� ��campaign featuring Iranganie Serasinghe, as well as through over 400 Singer Plus, Singer Mega and SISIL World outlets.



�� <��discovered that many hospitals were unable to cope with the high rate of kidney-related diseases in the country, leaving many Sri Lankans without convenient access to J��K�� the Western Province were forced to travel to the National Hospital in Colombo to seek appropriate treatment, causing great hardship in many cases.

In order to mitigate this problem and make life easier for thousands of Sri Lankans, Singer decided to donate two dialysis machines, worth approximately Rs. 4 million, to the �� |��=��&��"��!��;��machines over to the Hospital on the 26th of May 2013. �� |�however, as the Company intends to continue this initiative ��diseases across the island.

Other Healthcare Assistance

Over the past six months, Singer has taken on the critical ��|��"��'��]��by the Company was used to rebuild and refurbish Ward 2 of the Hospital, which had lain dormant until the reconstruction, depriving thousands of access to medical ��|��{};�� ;�J��with the amenities needed by the area’s residents.

Other community service initiatives focused on Sri Lanka’s healthcare infrastructure include the maintenance of the Lunawa Hospital’s Male Ward, as well as the construction and maintenance of the Maternity Ward in the Nuwara Eliya Hospital, which greatly reduced the infant mortality rate there.

��"��{��{}��"��<�� "��`��

Blood Drive��<��Nikaweratiya Branch on 9th July 2013. Over 60 donors ��<��<��`��organised a similar campaign during the year.

‘Do You See What I See’ Project<��'��]]^|z��>;��T��<��K�<��&��for the purpose of purchasing contact lenses and spectacles ��avoidable blindness in the world.

Ten Rupee Projects By Singer Staff

¤� ��*��{�]�� utilised to donate dry rations to a deserving family in ��|�'��*��=��Agreement Unit visited the family at their home to make the donation.

¤� �� Q� ��"��"��

¤� ��*��<�� |�� $��|� �� |�� {z��{��for his children.



Donations¤� +�� Q��K��

of Nephrology in Maligawatte.

¤� � �� Q��"��]��

¤� K��|��carts that were needed by the National Hospital for Respiratory Disease in Welisara were donated by us.

¤� +��'��{}|��>;� �� of the much deserving Sri Lanka Cancer Society.

¤� K��|� ��=#�� General Hospital. Educational lectures were also organised by showing video clips on topics such as caring for newborns, feeding techniques, illnesses in infants and educated family members about the health of newborns.

¤� � �� `��'��`�� the National Hospital.

¤� +�� +�� +��"��"��"��Q��'��

¤� +�� <�� for Upliftment and Rehabilitation of Leprosy +��

¤� �� ;�� organised by St. Vincent De Paul Society, Wennappuwa.

¤� +�� #��&��|�� &�"��

¤� <��Q�� donation of essential goods.

¤� ��:��+�� of school supplies.

¤� <��"��

¤� <�� Q� �*��

Public Policy

Singer does not fund or make contributions of any kind to political parties, politicians or related institutions. ��"��!��Sri Lanka to submit its proposals for consideration when formulating the National Budget.

Anti-Competitive Behaviour and Compliance

��"��;competitive behaviour, anti-trust and monopoly practices during 2013. We always obtain necessary local authority approval and strictly adhere to rules and regulations pertaining to display materials, audio/video materials, branding among other factors when conducting marketing/sales promotional activities.

�� during the year.

Product Responsibility

¥T��&��T��

Compared to the previous year, we were operating under ��%��K�� demonstrated that ‘loyalty’ is a reciprocal responsibility. ��|��most economic burdens and ensuring that all our market segments are well looked after. Our dedicated, committed and well-trained team and our loyal customers, who have stood by us over the years, are our greatest assets.

��"��repeatedly provided with products and services of world class repute.

We visited overseas factories and conducted extensive research and quality checks prior to adding some of the most respected and widely consumed brands in the world to our repertoire. Our customers can always count on us for the latest technological developments.

Approximately, 40% of products sold by Singer are manufactured through our Piliyandala factory and SIC ��'��K<$�<��&��J��managers, engineers and manual workforce who are experienced and highly capable of producing advanced and innovative products. We also use customer feedback and market trends to develop new products with the support of ��;��;��<��!#$�and SISIL ECO series is the latest range of locally developed ��'��?=��@��="�� Sri Lankan eco-friendly consumer durables market. Our quality assurance division is operated by professional engineers who conduct extensive stringent quality control procedures on all products from sample evaluations to post-sale evaluations which ensure that our products are continuously enhanced and retains a lengthy life cycle.



Product Sourcing for Our Own Brands We take strong measures to source products from the world’s leading manufacturers based on thoroughly evaluation on key areas such as industry ranking, company ��|��|��|�J��consciousness, delivery capabilities and more.

Research Our best research tool is our employee base. As a large customer centric organisation, our own customer service representatives are spread across the country providing a ��that is directly absorbed from customers and communicated to brand managers who in turn make presentations to our products and services research and development teams. ��:��example, our hire purchase customer base of approximately 350,000 customers normally visits our showrooms and �� forms, informal surveys, product surveys, data mining, mystery shoppers, local and international research teams, as well as our call centre that records and reports on all customer complaints and feedbacks. We periodically utilise the services of research agencies such as Nielsens and LMRB to identify changing consumer trends and widen our knowledge on consumer needs by conducting overall ��

For the purpose of improving our products and services we also perform data mining on loyalty members to extract their preferences on a continuous basis. We obtain customs imports statistics to measure market trends and market share movements as well.

Retail Operations/New Product Introduction

Singer Green Logo

On 3rd July 2013 the Director of Marketing and Commercial, *��*�� %��<��Sustainability Logo. Brand managers were asked to incorporate the distinctive new Singer Green Logo so that


their customers can make an informed purchasing decision on products that possess environmentally friendly and/or energy saving merits.

��contains green elements such as:

¤� ��hardboard.

¤� ��materials such as biodegradable plastics.

¤� ��<��'��Energy Ratings.

¤� ��compared to conventional methods.

¤� ��>��>��environmentally friendly focus.

Customer Complaints/Suggestions

While our customers are encouraged to make written complaints or suggestions directly to our Management or CEO, we are fortunate to be in close proximity to our customers through our vast retail and dealer network. Customers are able to channel their complaints and suggestions to us directly and we in turn are able to respond swiftly and appropriately to these issues.

Avoiding/Reducing Negative Impacts

of Company’s Products/Services on

Customers

Singer gets closer to the customer everyday with more than 400 retail outlets and over 1,000 consumer touch points including the Singer dealer network, and corresponding �� <��=��&��retail network. As a blue-chip Company responsible for an extensive range of stakeholders, the Executives and ��'��|��comments directed towards the Company as swiftly as possible in a transparent and lawful manner.

We bring our retail network closer to the homes of our customers in order to facilitate ease of access to our products through a one-stop shopping experience. Our ��is ready and willing to educate customers about our �� a personalised service that helps to meet every customer’s unique requirements.


Customer Care Centre ¥<�� %�� ;��

�� <��=��up a Call Centre. Customer issues are directed to the right channels as our Call Centres are linked to service franchise agents. Customers can dial the hotline to make suggestions, as well as lodge complaints regarding Singer products and services. Our customer care representatives thereafter liaise with our Service Centre or the relevant personnel to ensure the customer complaint is attended to, tracking the internal progress of the customer’s complaint. Following a complaint, we take proactive measures to ensure that we comply with the highest industrial standards. We also move quickly to establish and adapt to our stringent internal product quality standards to mitigate the issue.

It’s because of the shift in the decision-making process, and the social technology that makes it easy to intensify the public opinion, that makes the contact centre more vital. Once seen as a cost of doing business, the contact �� &��our brand value. Providing remarkable customer service is no longer a subtle advantage but a critical component of our brand’s viability

A high-quality contact centre has become a valuable asset within the Marketing team’s responsibility of growing the online rating of the brand. In other words, the call centre’s responsibility is to create share-worthy ��&�expectations, they are more likely to share a positive review of their experience, creating a trusted digital �� %�� J��|�� ;�� K��|�� around qualitative measurements such as turning customers into raving fans based on the quality of the outcome experienced and ease of doing business with our brand. K��|� ��&��|��ones who will endorse and recommend our brand.

Call Volume 2013 2012

Inbound 128,815 96,578

Outbound 218,549 139,613

�� 347,364 236,191

Trade-in OffersReactive measures to complaints and suggestions include product exchange and trade-in schemes where customers can replace products that they are not happy with. Our trade-in scheme also allows customers to trade in their older, ��%�� %��

Marketing Outreach Programme Our Singer Plus channel initiated a unique new marketing ��*��$��&��is where we visit each home within target community clusters and discuss with home owners the status of their ��increase awareness of our Singer Plus Channel and enhance its status to match that of Singer.

��#�� Marketing Outreach Programme have resulted in greater communication between Singer Plus customers and outlets. While providing a personalised service to our customers, ��



Introduction and scope of the engagement

��<��?<��=��@��="��an independent assurance on the following elements of the <��'��;�{�]��?¥��'��@�

¤� '��z��'��

¤� =��<��?<��=��@��="&��;��?¥��;��@��'��prepared in accordance with the requirements of the Global '��K��!��]�!��¥"��

Basis of our work and level of assurance

We performed our procedures to provide limited assurance in accordance with Sri Lanka Standard on Assurance Engagements ?<=<+#��@��+��#��$��+��Reviews of Historical Financial Information’, issued by the Institute ��"��+��<��=��?¥"+<=�@�

��engagement are based on the Sustainability Reporting Guidelines ?¥!'K�!��@��|��J��!'K��¥"��!'K�Application Level’ publication,publicly available at GRI’s global ��¥ ��

Our engagement provides limited assurance as well as reasonable assurance. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement conducted in accordance with SLSAE-3000 and consequently does not enable �� engagement. Accordingly, we do not express an opinion providing reasonable assurance.

Management of Singer (Sri Lanka) PLC’s

responsibility for the Report

��<��?<��=��@��="��for the preparation of the self-declaration, the information and statements contained within the Report, and for maintaining adequate records and internal controls that are designed to support the sustaining reporting process in line with the GRI Sustainability Reporting Guidelines.

Ernst & Young’s responsibility

Our responsibility is to express a conclusion as to whether we have become aware of any matter that causes us to believe that the self-declaration contained in the Report has not been prepared, in all material respect, in accordance with the ��J��!'K�!��¥"�� <��?<��=��@��="��with our engagement letter dated 23 December 2013. We disclaim any assumption of responsibility for any reliance on this report ��<��?<��=��@��="��

purpose other than that for which it was prepared. In conducting our engagement, we have complied with the independence requirements of the Code for Ethics for Professional Accountants issued by the CASL.

Key assurance procedures

We planned and performed our procedures to obtain the information and explanations considered necessary to provide �%��

¤� K�� <��?<��=��@��="&��understand the process for collection, analysis, aggregation and presentation of the self-declaration.

¤� '�� self-declaration and the Report.

¤� "��<��?<��=��@��="�on a sample basis through recalculation.

¤� '��<��?<��=��@��="&��]��{�]��

¤� "��'��;��¥"�� GRI Application Level publication.

Our procedures did not include testing electronic systems used to collect and aggregate the information.

Limitations and considerations

#��inherent limitations given their nature and the methods used for determining, calculating and estimating such data.

Conclusion

Based on the procedures performed, as described above, we ��¡

¤� �� page 70 of the Report are properly derived from the audited ��<��?<��=��@��="��ended 31 December 2012 and 31 December 2013.

¤� Q��GRI self-declaration contained in page 99 of the Report has not been prepared, all material respects, in accordance with the ��J��!'K�!��"��

Chartered Accountants



Independent Assurance Report to the Board of Directors of Singer (Sri Lanka) PLC

on the Sustainability Report - 2013


Index No.

Description Report Section Page

1. Strategy and Analysis1.1 Statement from the most senior decision-maker of the organisation Embracing the Future and

Caring for Posterity62

1.2 Description of key impacts, risks and opportunities Not Applicable

_/�� 2.1 Name of the Organisation Corporate Information Inner Back

Cover

2.2 Primary brands, products and/or services Making Headway Amid Challenges


31

63

2.3 Operational structure of the organisation, including main divisions, operating companies, ��


63

2.4 Location and organisation headquarters Embracing the Future and Caring for Posterity

63

2.5 Q�� '��


63

2.6 Nature of ownership and legal form Embracing the Future and Caring for Posterity

63

2.7 *��?�� |��>��@

Embracing the Future and Caring for PosterityDistribution Network

63

209

2.8 Scale of the reporting organisation Embracing the Future and Caring for Posterity

63

2.9 <��|��|�� Embracing the Future and Caring for Posterity

63

2.10 Awards received during the period Embracing the Future and Caring for Posterity

65

3. Report Parameters3.1 Reporting period Embracing the Future and


3.2 Date of most reason previous Report Embracing the Future and Caring for Posterity

66

3.3 Reporting cycle Embracing the Future and Caring for Posterity

66

3.4 Contact point for questions regarding the Report or its contents Embracing the Future and Caring for Posterity

66

Report Scope and Boundary

3.5 �� Embracing the Future and Caring for Posterity

66

3.6 Boundary of the Report Embracing the Future and Caring for Posterity

66

3.7 +��'�� Not Applicable

3.8 ��|��|��|��>��


66

3.9 Data measurement techniques and the bases of calculations Embracing the Future and Caring for Posterity

66

3.10 #��reasons for such restatement


66

3.11 <��|��applied in the Report


63

Global Reporting Initiatives (GRI) Standard Disclosures Index



Index No.


GRI Content Index

3.12 ��<��'�� Embracing the Future and Caring for Posterity

94-99

Assurance3.13 Policy and current practice with regard to seeking external assurance for the Report Embracing the Future and


4. Governance, Commitments and EngagementGovernance

4.1 Governance structure of the organisation Embracing the Future and Caring for Posterity��*��

66100-104

4.2 Designators of the chair of the highest governance body ��*�� 100-104

4.3 �� independent and/or non-executive members

��*�� 100-112

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body

��*�� 100-104

4.5 Linkage between compensation for members of the highest governance body, senior managers and executives and the organisation’s performance

Not Applicable


67

4.7 ��|�J�� of the highest governance body and its committees including any consideration of gender and other indicators of diversity

Embracing the Future and Caring for Posterity��*��

67

114

4.8 Internally developed statements of mission or values, codes of conducts and principles relevant to economic, environmental and social performance and the status of their implementation.


68

4.9 ��&�� and management of economic, environmental and social performance


68

4.10 Processes for evaluating the highest governance body’s own performance Embracing the Future and Caring for Posterity��*��

69

115-117

Commitments to External Initiatives

4.11 Elaboration of precautionary approach Embracing the Future and Caring for Posterity

69

4.12 Externally developed economic, environmental and social charters, principles and other initiatives

Not Applicable

4.13 Membership in industry/business associations Embracing the Future and Caring for Posterity

67-68

4.14 List of stakeholder group engaged by the organisation Embracing the Future and Caring for Posterity

69


69

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group


69-70

4.17 �� organisation’s response

Not Applicable

EnvironmentalMaterials

EN1 Materials used by weight or volume Not Applicable

EN2 Percentage of materials used that are recycled input materials Not Applicable



Index No.


EnergyEN3 Direct energy consumption by primary energy source Not Applicable

EN4 Indirect energy consumption by primary source Not Applicable

EN5 #��%�� Embracing the Future and Caring for Posterity

71

EN6 K��;�%�� ;�� services and reductions in energy requirements achieved


72

EN7 Initiatives to reduce indirect energy consumption and reductions achieved

WaterEN8 �� Not Applicable

EN9 �� Not Applicable

EN10 Percentage and total volume of water recycled and reused Not Applicable

BiodiversityEN11 =�� |��|��

protected areasNot Applicable

EN12 ��|�� in protected areas and areas of high biodiversity value outside protected areas

Not Applicable

EN13 Habitats protected or restored Not Applicable

EN14 Strategies, current action and future plans for managing impacts on biodiversity Not Applicable

EN15 Number of IUCN red list species and national conservation list species with habitats ��

Not Applicable

��:�� *�% ��EN16 �� Not Applicable

EN17 Other relevant indirect greenhouse gas emissions by weight Not Applicable

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved Embracing the Future and Caring for Posterity

73

EN19 #��$��;�� Not Applicable

EN20 Q$|�<$|�� Not Applicable

EN21 �� J�� Embracing the Future and Caring for Posterity

72-73

EN22 �� Embracing the Future and Caring for Posterity

73

EN23 �� Not Applicable

EN24 ��|��|�� under the terms of Basel Convention Annex I, II and IV and percentage of transport waste shipped internationally.

Not Applicable

EN25 K��|��|�� &��

Not Applicable

Products and ServicesEN26 Initiatives to mitigate environmental impact of products and services and extent

of impact mitigationEmbracing the Future and Caring for Posterity

72-73

EN27 Percentage of products sold and their packaging materials reclaimed Not Applicable

ComplianceEN28 *��;��

for non-compliance with environmental laws and regulationsNot Applicable

TransportEN29 <��

used for the organisation’s operations and transporting members of the workforceNot Applicable

OverallEN30 �� Not Applicable



Index No.


Human Rights

Investment and Procurement Practices

HR1 �� on human rights clauses/human rights screening

Not Applicable

HR2 ��|�� who have undergone human rights screening and actions taken

Not Applicable

HR3 ��aspects of human rights relating to operations

Not Applicable

HR4 �� Not Applicable

Freedom of Association and Collective BargainingHR5 Violations/Found at Risk in operations, the right to exercise freedom of

association and collective bargaining and favourable actions taken Not Applicable

Child LabourHR6 Measures taken to eliminate child labour Not Applicable

Forced and Compulsory LabourHR7 Measures taken to eliminate compulsory or forced labour Not Applicable

Security PracticesHR8 Percentage of security personnel trained in organisation policies and procedures

on human rightsNot Applicable

Indigenous RightsHR9 �� Not Applicable

AssessmentHR10 ��

and or impact assessmentsNot Applicable

RemediationHR11 Q��

through formal grievance mechanismsEmbracing the Future and Caring for Posterity

85

Labour Practices and Decent WorkLA1 �� |��

region broken down by genderEmbracing the Future and Caring for Posterity

80

LA2 ��|� gender and region

Not Applicable

LA3 ��;�� ;��|��


77

LA15 Return to work and retention rates after parental leave by gender Not Applicable

Labour Management RelationsLA4 Percentage of employees covered by collective bargaining agreements Embracing the Future and


LA5 *��?@��|��

Not Applicable

Occupational Health and SafetyLA6 ��

health and safety committees that help monitor and advice on occupational health and safety programmes


80

LA7 '��|��|��|�� work-related fatalities by region and by gender

Not Applicable

LA8 Education, training, counselling, prevention of diseases and risk-control programmes in place to assist workforce members, their families or community members regarding serious diseases

Not Applicable

LA9 Health and safety topics covered in formal agreements with trade unions Not Applicable



Index No.


Training and EducationLA10 Average hours of training per year per employee by gender and employee category Embracing the Future and


LA11 Programmes for skills management and life-long learning that support the continued employability of employees and assist them in managing career endings


80

LA12 Percentage of employees receiving regular performance and career developments, reviews by gender


85

Diversity and Equal Opportunity

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group, membership and other indicators of diversity

Not Applicable

Equal Remuneration for Women and Men

LA14 '�� locations of operation

Not Applicable

Society

Local Community

SO1 Percentage of operations with implemented local community engagement, impact assessments and development programmes


86

SO9 $�� Not Applicable

SO10 Prevention and mitigation measures implemented in operations with ��

Not Applicable

Corruption

SO2 Percentage and total number of business units analysed for risks related to corruption Not Applicable

SO3 Percentage of employees trained in organisation’s anti-corruption policies and procedures Not Applicable

SO4 Actions taken in response to incidents of corruption Embracing the Future and Caring for Posterity

86

Public Policy

SO5 Public policy positions and participation in public policy development and lobbying Embracing the Future and Caring for Posterity

90

SO6 ��;��|��institutions by country


90

Anti-Competitive Behaviour

SO7 ��;��|��;��and their outcomes


90

Compliance

SO8 *��;�� non-compliance with laws and regulations

Not Applicable

Products Responsibility

Customer Health and SafetyPR1 Life cycle stages in which health and safety impacts of products and services are assessed

��|�� such procedures.


90

PR2 ��;�� health and safety impacts of products and services


90

PR3 ��J�� J��

Not Applicable

PR4 ��;�� codes concerning product and service information and labelling

Not Applicable

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction


91



Index No.


Marketing CommunicationsPR6 Programmes for adherence to laws and voluntary codes related to marketing communications,

including advertising, promotion and sponsorshipEmbracing the Future and Caring for Posterity

92

PR7 ��;�� concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes

Not Applicable

Customer Privacy

PR8 �� privacy and losses of customer data


91

EconomicEconomic Performance

EC1 Direct economic value generated and distributed Embracing the Future and Caring for Posterity

70

EC2 Financial Implications and other risks and opportunities for the organisation’s activities due to climate change


71

EC3 "��&�� Notes to the Financial Statements

165

EC4 <��!�� Embracing the Future and Caring for Posterity

71

Market PresenceEC5 Range of ratio of standards entry level wage by gender compared to local minimum wage at

��Not Applicable

EC6 ��|��;��of operation

Not Applicable

EC7 Procedures for local hiring and proportion of senior management hired from the local ��

Not Applicable

Indirect Economic Impacts

EC8 Development and impact of infrastructure investments and services provided primarily for ��|��;��|��


75-76

EC9 `��|� including the extent of impacts


74-76


2002In Accordance

C +C B +B A +A

Ma

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ato

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Self-Declared

Repo

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xter

nally

Ass

ured

Repo

rt E

xter

nally

Ass

ured

Repo

rt E

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nally

Ass

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Op

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GRI Checked


THE WAY WE MANAGE

Corporate Governance

Group/Company ensures to comply with established best practices in corporate governance and ensures the highest ��adopts core values and standards which set out the conduct �� |��|�colleagues, suppliers and other stakeholders. Once the core values are set and communicated to all levels of the organisation, the Company is of the belief that the highest standards of integrity will be maintained in business.

Governance Policy and Framework

Governance framework covers both corporate governance and business governance. Corporate governance and business governance are interrelated processes and one process is always linked to and dependent on the other process. Business governance enables us to focus on areas of value creation to the business. Corporate governance process is to safeguard and ensure that the Group/Company achieve business performance maintaining a balance between accountability and assurance of the business ��|� ��corporate governance are interlinked to each other as depicted below:

In line with the above governance framework, the Group believes that successfully run business enterprises are founded on a set of fundamental qualities - those that embed transparency, accountability and responsibility within ��|�the Company’s strong core qualities and guiding corporate governance functions ensure that we remain ‘law abiding’, strictly adhering to the laws and regulations of the country. Business integrity and accountability to stakeholders are top of the mind factors that we inculcate right across - from the ��

Statement of Compliance

Singer Group is fully - compliant with the Code of Best Practices on Corporate Governance issued in year 2008 ��K��"��+��<��=��and the Securities and Exchange Commission of Sri Lanka as well as the Rules on Corporate Governance published by the Colombo Stock Exchange. In addition to the above, ��<��"��<��:��?=��@��="�� fully -compliant with the requirement set out by the Finance Companies Act No. 78 of 1988 and subsequent amendments and Finance Companies Corporate Governance Direction No. 3 of 2008 issued by the Central Bank of Sri Lanka.

Chairman’s Statement

Dear Shareholders,

During an era of rapid growth in the economy, when ��the yardsticks by which we measure the control environment needs constant review, sustainability of the corporate’s future growth rests upon the extent to which management practices the Code of Corporate Governance in its fullness.

��above, we have once again entrusted Chartered +��|�*��#�� T��any gaps in the existing internal controls system, arising from expansion of business, such that management can swiftly respond with corrective measures to sustain the status core. By this action, the Board of Directors and Senior Management have demonstrated their willingness and commitment to practice the highest standards of business ethics and righteousness expected of us.

��"��!��'�� process through which we implement our Corporate Governance Ethics to safeguard shareholder stake and we invite you to spend time to read the contents.

Sincerely,




�� {�]��

�� +��!�"��|��of Directors restructured the Remuneration Committee ��+��"�� z��*��{�]��compliance with the directives issued by the Security and Exchange Commission and Colombo Stock Exchange.

�� :��K:<;#'��%��

�� :��K:<;#'��%��

� Enhance internal audit resources and frequency of audits to ensure that strategic and key operational risks are well-managed and any deviations are escalated on a timely basis.

�� *��#�� T��;�Chartered Accountants to carry out internal systems and controls review and to document said internal system ��|��Part of this assignment was completed and some of the areas of recommendation were implemented in year 2013 and balance part of the assignment is being currently carried out and is expected to be completed in year 2014.

Business Governance

��?��!��@��"��&��<��:��$��of grass root level. Business governance process is started at the point of preparing the annual plan and annual plan is ��|��;��|��;��;��+��plan is initially approved by the Singer Asia Ltd., which is the Intermediate Parent Company and subsequently reviewed ��!��"#$��#��Committee review the strategic plan and budgets against the actual performance on a monthly basis and at more frequent intervals, as needed and Chairman and Board of Directors review actual performance at each Board meeting.

IT Governance

K��"��K�� K��is an integral part of the corporate governance process and which deals primarily with optimising the linkage between Strategic Directions and Information Management of the "��"��"��K��covers resources operated and managed centrally and ��K��ERP system, other related business systems, internet, e-mails and other Company-wide data communication system.

K��K�� "�� set below:

Compliance Investing in licensed software deployed in compliance with Intellectual Property Law with a view to educate and mandate compliance to such laws throughout the Company.

Operational #%��

Streamlining of inventory management, logistic management and credit management process so that integrity is maintained across the value chain through near real-time processing.

Prudent Capital Expenditure

+��K��K�� the business plan and carefully scrutinised at the planning level, and approval is granted by both, Board and Intermediate Parent Company.

:��K��is sought from the Group CEO and Intermediate Parent Company.

Customer Convenience

#��%�� to increase the contribution to customer convenience.

!��K� Protecting the environment by reducing print through migration to e-mails and soft copies.

��*��


Governance Structure

External Regulations Internal Regulations

Companies Act No. 07 of 2007 Articles of Association of the Company

Continues Listing Requirements of the Colombo Stock Exchange Singer Finance Manual

Code of Best Practice of Corporate Governance issued in ��{��~��K��"��+��Sri Lanka and Securities and Exchange Commission of Sri Lanka

Company’s Code of Ethics, Human Resources Policies and Procedures

K��<��"��<��:��?=��@��="|�requirements set out by the Finance Companies Act No. 78 of 1988 and Subsequent Amendments and Finance Companies Corporate Governance - Direction No. 3 of 2008 issued by the Central Bank of Sri Lanka

K��$��K��*��

Company’s Standing Institution and Policy and ��?� �@

As diagrammatically presented above, Group governance structure is set up to create a distinction between the functions of the Board and Management team but ensuring ��;�� !��"��#��$%��linking role between Board, Executive Management Committee and other Stakeholders i.e., Shareholders,

Employees, Customers, Community and Environment. !��&�"��#��$%��link with the Board and Executive Management Committee. ��%��behalf of Shareholders, Employees, Customers, Community and Environment.

��*��

Board of Directors

Shareholders

Group Chief #��$%��

Executive Committee

Employee

Customer

Community

Environment

Board of Directors of Intermediate Parent Company

Board Remuneration Committee

Board Audit Committee


Business Ethics

��!��are tasked with ensuring that the resultant regime of exemplary governance across all aspects of business are in the best interests of stakeholders. Ethically correct conduct comprising integrity, honesty, fair play and loyalty pervade all Group actions.

��|�� in the way business and communication take place with all stakeholders. A ‘whistle-blowing policy’ introduced internally in 2009 has increased the level of transparency towards a wider dimension.

All employees are bound by the Company’s written Code of Ethics that includes the following aspects:

� #��|�� performing ones duties.

� +�� "��¡��|��interest in advance.

� *��;��information.

� Work within applicable laws and regulations.

� Safeguard the Company’s assets.

� +�� concerned or the Company’s image.

� Strictly avoid giving or accepting any kind of bribe, either directly or indirectly.

� Strictly avoid making contributions for political funds, either directly or indirectly.

� Strictly avoid any kind of sexual harassment.

��"�� ;�� procedure and encourages any employee who suspects wrongdoing at work, whether by management, peers or any other employee, to raise their concerns.

Other Policies

In addition, the Company implements policies covering:-

� Recruitment and selection

� Financial integrity

� Use of Company property including computers

� Non-harassment in the workplace

� Environment, safety and health

�� <��K��

Responsibility to Customers

��"��; �� and provides a wide choice of products and brands to its customers, augmented by easy payment opportunities. Outstanding customer care and world class after-sales service are two of seven propositions substantiating our claim to be a world-class Company. What is salient about the widespread nature of our distribution is that in most instances, a consumer living in any part of the country need not travel more than 10 km to obtain goods and services from the Company.

Products sold by the Company are of the highest quality and ��"��extends warranties on its products. It maintains an island-wide network of service centres and franchise agents to facilitate product repairs. Customer grievances, if any, are handled promptly and solutions provided with exchange of merchandise in the unlikely event of a manufacturing defect.

Among developments relevant to customer relations in the year under review was the growing popularity of our Contact Centre established in 2006 to deal with customer complaints and product performance issues as well as to provide customer-related information. In addition to this, the Company conducts customer-loyalty programmes such as the popular Mega Money Programme, Singer Plus Reward Programme and Customer-Service Clinics across the country where any customer can relate their grievances or obtain service for their product on site.

K��;��|� ��facilities are being added to the Company’s retail outlets progressively as part of routine showroom renovations.

Environment

Social responsibility is regarded as a fundamental aspect of the Company’s strategy and it is one of the core values of the business. As stated in our value statement ‘we make ��and conserved for future generations’ and inline with this core value, the Company is committed to minimising any adverse impact the conduct of the business may have on the environment. Further to that, this core value encourages and ensures our products, processes and business does not unnecessarily damage the environment.

��*��


��"��+��'��|��#��!��'��K��?!'K@�!��"��&�<��#��*��Embracing the Future and Caring for Posterity on pages 62 to 92.

Code of Best Practice on Corporate Governance

We set out below the corporate governance practices adopted and practiced by the Company, the extent of adoption of ��"��"��!��{��~��K��"��+��Sri Lanka and the Securities and Exchange Commission of Sri Lanka and the Rule set out in Section 7.10 of the Colombo Stock Exchange Listing Rules on Corporate Governance.

Section A

��J��"��"��!��{��~��<��#��"��<��=��K��"��+��<��=��"��&��

� Directors

� Director Remuneration

� Relationship with Shareholders

� Accountability and Audit

� Institutional Investors

� Other Investors

��

A. Directors

A.1 - The Board

Main Principle

#��|� ��|��"��

Corporate Governance Principle

SEC & ICASL Code Reference

Requirement of the Code Compliant with the Code

Board Meeting A.1.1 ��regularly, at least once in every quarter.

��J��also met on a regular basis. Circular Resolutions are ��J��attendance of the members are set out on page 133. ��during 2013 are also provided on page 133.

Responsibility of the Board

A.1.2 Board should be responsible for matters including:

Ensuring the formulation and implementation of a sound business strategy.

��"��for the formulation of the strategic vision and mission of the Company, setting the overall corporate policy and strategy, monitoring performance and reviewing risks ��added responsibility of directing Company performance towards achieving the best results possible and increasing ��"��&��"��&�� |��

��*��





Ensuring that the CEO and Management team possess the skill, experience and knowledge to implement strategy.

��"#$��+��'�� on page 21.

While the Board of Directors is ultimately responsible ��Company, the day-to-day management of the Company ��!��"#$��participation in decision-making at all levels, with strategic ��

��!��"#$��#��"��*��+��#��*��"��|��Managers who are divisional heads and one manager representing Finance Division and Factory and Group CEO, meets every week for a performance review and decision-��!��"#$��*��"��+��Directors to the Main Board.

��"��&�+��J��"�� +�� *��"��which is represented by all Heads of Divisions, and are shared with Divisional Heads and Heads of all SBUs. ��*��"�� Heads of Divisions and SBUs have the autonomy and ��that are achievable.

��!��"#$��year in line with the Annual Plan after they are discussed at Executive Committee meetings. A review of progress on plan implementation is a key item on the agenda of the monthly Management Review meetings.

Ensuring the adoption of ��"#$��<��Management succession strategy.

Succession planning is given due recognition in the ��#��in the performance appraisals of the Senior Management ��*��

Addition to that, as part of the development and succession programme, the ‘3x3x3’ initiative seeks ��*��|�<��Managers, Middle Managers and Junior Managers have ��

��*��





#��to secure integrity of information, internal control and risk management.

��Audit Committee.

��+��"�� <��!��so as to provide additional assurance on the reliability of Financial Statements through a process of independent ��

+��|��+��"��in assisting the Board of Directors in discharging their ��J��reporting and related communication to the shareholders and the public.

Audit Committee framework, composition, responsibilities and duties are given in the Audit Committee Report on page 142.

Risk Management framework is given in the Risk Management Report appearing from pages 134 to 139.

Ensuring compliance with laws, regulation and ethical standards.

�� and regulatory requirements and ensures that stakeholder interests are considered in key corporate direction.

A compliance checklist is provided to Board Audit Committee and Board members in every quarter by the "��$%�� laws, regulations etc.

��"��"��#�� Human Resources Policies and Procedures applicable to all employees.

All stakeholders’ interest are considered in corporate decisions.

�� shareholders, customers, community, environment, colleagues, suppliers and other stakeholders. Once the core values are set and communicated to all levels of the organisation, there is a belief that the highest standards of integrity are maintained in business.

��Managers, Senior Managers, Auditors and Advisors to ��!��&��|��|��|��performance reviews, risk management and corporate governance practices.

��*��





��"��&�� and standards are set with emphasis on adopting appropriate accounting policies and fostering �� regulations.

��!��are tasked with ensuring that the resultant regime of exemplary governance across all aspects of business are in the best interests of stakeholders. Ethically correct conduct comprising integrity, honesty, fair play and loyalty pervade all Group actions.

Accounting policies are reviewed annually in light of changing business requirements, evolving international and local accounting standards and industry best practice. +��|��compliance with applicable regulations. Group continues to adopt same accounting policies adopted in year 2012 and which are given as part of the Financial Reports in pages 160 to 167.

:�� Board functions as relevant to the organisation.

��"��&��|�performance and prospects.

Members from professional accounting bodies and high ��acumen, knowledge and other Board members from the professional marketing bodies ensure stimulation of marketing knowledge of the Board members.

Compliance with laws and seeking independent professional advices

A.1.3 ��|��Directors individually, must act in accordance with the laws of the country and there should be a procedure a greed by the Board of Directors to obtain independent professional advice where necessary, at the Company’s expense.

+��|��the organisation to ensure compliance with applicable laws and regulations.

��professional advice from a third party including the Company’s External Auditors and other professional consultants whenever deemed necessary at the expense of the Company.

Neither Board nor Except above, no Director obtained any independent professional advice during the year 2013.

Company Secretary A.1.4 All Directors should have access to the advice and service of the Company’s Secretary, who is responsible to the Board in ensuring, that the Board procedures are followed and that the applicable rules and regulations are complied with. Any question of the removal of the Company Secretary should be a matter for the Board as a whole.

��"��<��of Reference are followed and applicable rules and ��"��<��advices the Board and ensures that matters concerning the Companies Act, Board procedures and other applicable rules and regulations are followed. All Directors ��"��<��<��J��J��Companies Act.

��*��





Independent �� Directors

A.1.5 All Directors should bring ��bear on issues of strategy, performance, resources and standards of business conduct.

��"�� Directors, their individual contribution and concerns are ��that the balance of power is maintained.

In advance of every Board meeting, each Director receives a comprehensive set of Board papers and any additional information requested by the Directors. It is the Group CEO’s duty to ensure that all members are properly briefed.

None of the Independent Directors have held executive responsibilities in the Company, and have submitted a ��with Section 07 of the CSE Listing Rules on Corporate Governance as at 31st December 2013.

Dedication of adequate time ��Directors

A.1.6 Every Director should dedicate ��J��matters of the Board and the Company, to ensure that the duties and responsibilities owned to the Company are satisfactorily discharged.

�� "��of the other Directors are detailed on page 133.

��"�� Q��;#��%��{�]��

�� existing Directors

A.1.7 Every Director should receive �� appointed to the Board of a company, and subsequently ��curricular should encompass both general aspects of directorship and matters specify to the particular industry/company concerned. A Director must recognise that there is a need for continuous training and expansion of the knowledge and skill required to ��a Director.

�� familiarise and obtain an in-depth understanding of the Company’s business, its strategies, risks and processes, at their discretion.

��#��+��Directors to equip themselves to discharge their ��by principles, external and in-house training.

Directors are briefed on changes in laws and regulations, tax laws and accounting standards from time-to-time either during the Board meetings or at specially convened sessions.

��*��


A.2 Chairman and Group Chief Executive Officer (CEO)

Main Principle




Separation of the roles of Chairman and Group CEO

A.2.1 ��"��Group CEO are separated to ensure a balance of power and authority and to prevent any one individual from possessing unfettered decision-making authority.

��"��&��!��"#$&�� separated to ensure a balance of power of authority and this dual panel structure has been continued throughout the year 2013.

��"�� non-executive capacity with no activities involving the ��!��"��#��$%��#�;$%��Director of the Board and is the apex executive in charge of the day-to-day management of operations and business of the Company, while providing the link between the Board, Board of the Intermediate Parent Company and Divisional ��?��*��@�

A.3 Chairman’s Role

Main Principle��"��&��+��|��"��




Role of Chairman A.3.1 ��"��Board proceedings in a proper manner and ensure, inter alia, that:� ��

of both Executive and Non-Executive Directors is ��¡

� all Directors are encouraged ��contribution, within their respective capabilities, for ��"��¡

� a balance of power between Executive and Non-Executive Directors is ��¡

� the views of Directors on issues under consideration ��¡��

� the Board is in complete control of the Company’s ��its obligations to all shareholders and other stakeholders.

��"��K��|��responsibility for the Board’s composition, ensuring that the Board focuses on its key tasks and supports the Group CEO in managing the day-to-day running of the Company. ��"��shareholders, particularly on corporate governance issues.

��"��%��"��&�� to all stakeholders.

��"�� all Directors, their individual contribution and concerns �� and that the balance of power is maintained.

Chairman ensures that regular meetings are conducted at least once a quarter and the minutes of the meetings are accurately recorded.

Chairman approves the agenda prepared by the Company Secretary.

��*��


A.4 Financial Acumen

Main Principle�� %��




Financial acumen and knowledge

A.4.1 +��%��knowledge.

��"��:�� K��"��Accountants of Sri Lanka, Fellow of the Chartered Institute ��*��+��;�`��:�� "��K��*��;�`��!��"#$��+��*��K��"��+��of Sri Lanka and Fellow of the Chartered Institute of *��+��;�`��

In addition, the Board includes another member who ��:�� K��"��+��<��=��

A.5 Board Balance

Main Principle It is preferable for the Board to have a balance of Executive and Non-Executive Directors such that no individual or small group of individuals can dominate the Board’s decision-taking.




Presence of strong team of Non-Executive Directors

A.5.1 �� Non-Executive Directors of �%��for their views to carry �� Board’s decisions.

��at least two Non-Executive Directors or such number of Non-Executive Directors equivalent to one-third of total number of Directors, whichever is higher. In the event, the Chairman and CEO is the same person, Non-Executive Directors �� of the Board.

Six out of seven Directors on the Board are Non-Executive Directors which is well above the minimum prescribed ��"�� Q��;#�� made by the Board.

��*��





Independent Non-Executive Directors

A.5.2 Where the constitution of the Board of Directors includes only two Non-Executive Directors, both such Non-Executive Directors should be ‘independent’. In all other instances two or one-third of Non-Executive Directors appointed to the Board of Directors whichever is higher should be ‘independent’.

� ��Q��;#�� the Board are independent-based on the criteria set by this Code and the Listing Rules of the Colombo Stock Exchange.

��Q��K��Q��;#�� Directors are disclosed on page 150 and back page of the Annual Report.

Independence of Non-Executive Directors

A.5.3 For a Director to be deemed ‘independent’ such Director should be independent of management and free of any business or other relationship that could materially interfere with or could reasonably be perceived to materially interfere with the exercise of their unfettered and ��

��"��K��'��&� required by the Companies Act No. 07 of 2007, which also shows details of Director Interest in Contracts/Company or Group.

A disclosure on related party transactions is available on pages 200 to 203.

Annual Declaration A.5.4 Each Non-Executive Director should submit a signed and dated declaration annually of his/her independence or non-independence against the ��Specimen in Schedule H.

Every Non-Executive Independent Director of the Company has made written submissions as to their ��the Company, which is in line with the requirements of Schedule H of this Code.

Determination of Independence of Director

A.5.5 ��determination annually as to the independence or non-independence of each Non-Executive Director based on such a declaration made of decided criteria and other information available to the Board, and should set out in the Annual Report the names of Directors determined to be ‘independent’.

��the criteria not met and the basis for its determination in the Annual Report, if it determines that a Director is independent notwithstanding the existence of relationships or circumstances which indicate the contrary.

�� Directors based on the declarations submitted by the Non-Executive Directors, as to their independence, as a fair representation and will continue to evaluate their independence on this basis annually. No circumstances have arisen for the determination of independence by the Board, beyond the criteria set out in the Code. Independent Non-Executive Directors are:

��<��Deshabandu A.M. de S. Jayaratne

��*��





Requirement to appoint ‘Senior Non-Executive Director’

A.5.6 In the event the Chairman and CEO is the same person, the Board should appoint one of the Independent Non-Executive Directors to be the ‘Senior Independent ��&�?<K�@��this appointment in the Annual Report.

��J��<��K�� Director does not arise as the roles of Chairman and Group CEO are separated.

"�� discussion with Senior Independent Director

A.5.7 ��<��K��Director should make himself ��discussions with other Directors who may have concerns which they believe have not been properly considered by the Board as a whole and which pertain ��detrimental to the Company.

Not Applicable.

Chairman’s meetings with Non-Executive Directors

A.5.8 ��"��meetings with the Non-Executive Directors only, without the Executive Directors being present, as necessary and at least once each year.

Chairman meets with NEDs without the presence of Executive Directors, whenever necessary.

Recording of concerns in Board Minutes

A.5.9 Where Directors have concerns about the matters of the Company which cannot be unanimously resolved, they should ensure their concerns are recorded in the Board Minutes.

Concerns raised by the Directors during the year, if any, are recorded in the minutes of Board meetings with adequate details by the Company Secretary.

��*��


A.6 Supply of Information

Main Principle �� J��




Management obligation to provide appropriate and timely information to the Board

A.6.1 Management has an obligation to provide the Board with appropriate and timely information, but information volunteered by management may not be enough in all circumstances and Directors should make further inquiries where ��"��should ensure all Directors are properly briefed on issues arising at Board meetings.

��"�� adequate information in a timely manner. On urgent ��|��|�as early as possible.

��|� which are timely, accurate, relevant and comprehensive. ��;��additional information or clarify issues with any member of the Executive Committee.

If necessary, all Directors are adequately briefed by the Group CEO on matters arising at Board meetings. ��<��"��$%��Board Papers are circulated in advance prior to Board meeting.

If necessary, members of the Executive Committee, External Auditors and Outside Consultancies makes presentations on issues of importance.

��"��adequately on issues arising at Board meetings.

Adequate time for ��Board meetings

A.6.2 ��|��papers required for a Board meeting should ordinarily be provided to Directors at ��?z@��the meeting, to facilitate its ��

��|��J��conduct.

��*��


A.7 Appointments to the Board

Main Principle ��




Nomination Committee

A.7.1 A Nomination Committee should be established to make recommendations to the Board on all new Board ��Reference for Nomination Committees are set out in <��+��"�� and members of the Nomination Committee ��Annual Report.

Although the formal Nomination Committee is not formed by the Board, new appointments are decided based on consent of the Chairman, all Board Directors and the consent from the Intermediate Parent Company ��

No new appointment in year 2013.

Assessment of Board Composition by the Nomination Committee

A.7.2 ��Q��"��in the absence of a Nomination Committee, the Board as a whole should annually assess Board-composition to ascertain whether the combined knowledge and experience of the Board matches the strategic demands facing the Company. ��should be taken into account when new Board appointments are considered and when incumbent Directors come up for re-election.

Board as a whole annually assessed the composition of the Board to ensure that the combined knowledge and experience of the Board matches the strategic demand ��"�� are taken into account when new Board appointments are considered.

Disclose of required details of new Directors to shareholders

A.7.3 Upon the appointment of a new Director to the Board, the Company should forthwith disclose to shareholders:

� a brief résumé of the ��¡

� the nature of his expertise ��¡

� the names of companies in which the Director holds directorships or memberships in Board ��¡��

� whether such a Director can be considered ‘independent’.

All new appointments are communicated to the shareholders via the Colombo Stock Exchange.

No requirement was arisen in year 2013 due to none of new appointment to the Board.

�� provided on pages 20 to 21 in this Annual Report.

��*��


A.8 Re-election

Main Principle All Directors should be required to submit themselves for re-election at regular intervals and at least once in every three years.




Re-election of Non-Executive Directors, Chairman and CEO

A.8.1 Non-Executive Directors should ��;��the provisions in the Companies Act relating to the removal of a Director, and their reappointment should not be automatic.

In terms of the Articles of Association, one-third of the Directors, except for Chairman, Managing ��>"#$|��themselves for re-election at the AGM. By virtue of being the Chairman, Managing Director/CEO are not required to make themselves available for re-election as the Articles of Association.

��"��&�+��+��%��until the next Annual General Meeting, may seek reappointment by the shareholders at the said AGM.

Based on the article and the current composition of the Board, a Director has to come forward for re-election, every three years.

A résumé of the Directors coming up for re-election at the AGM, 2014 is available on pages 20 and 21.

��"��#��$%��

A.8.2 All Directors including the Chairman of the Board, should be ��appointment, and to re-election thereafter at intervals of no more ��Directors submitted for election or re-election should be accompanied by a résumé minimally as set out in paragraph A.7.3 above, to enable shareholders to make an informed decision on their election.

A.9 Appraisal of Board Performance

Main Principle Boards should periodically appraise their own performance in order to ensure that Board responsibilities are satisfactorily discharged.




Annual performance evaluation of the Board and its Committee

A.9.1 ��appraise itself on its performance in the discharge of its key responsibilities as set out in A.1.2.

��is reviewed and evaluated by the Board and Chairman based on a self-appraisal basis.

A.9.2 ��an annual self-evaluation of its own performance and that of its Committees.

A.9.3 �� performance evaluations have been conducted, in the Annual Report.

��*��


A.10 Disclosure of Information in Respect of Directors

Main Principle Shareholders should be kept advised of relevant details in respect of Directors.




Details in respect of Directors

A.10.1 ��+��'��Company should set out the following information in relation to each Director:

�� Q��|�J��¡

Available on pages 20 and 21 of Board of Directors.

�� >��expertise in relevant ��¡


iii. Immediate family and/or material business relationships with other ��"��¡

Not Applicable.

iv. Names of listed companies in Sri Lanka in which the Director concerned serves ��¡


v. Names of other companies in which the Director concerned serves as a Director, provided that where he/she holds directorships in companies within a Group of which the Company is a part, their ��¡��%��>she holds other directorships ��¡


vi. Number/percentage of Board meetings of the Company attended ��¡

Available on page 133.

vii. Committees in which the Director serves as Chairman ��¡


viii. Number/percentage of Committee meetings attended during the year.


��*��


A.11 Appraisal of Group Chief Executive Officer

Main Principle ��J��|��|��!��"#$�




Setting annual targets and the appraisal of performance of the CEO

A.11.1

A.11.2

At the commencement of ��|��in consultation with the CEO, should set, in line with the short, ��;��of the Company, reasonable ��;��that should be met by the Group CEO during the year.

��!��CEO should be evaluated by the Board at the end of each �� the targets set by the Board have been achieved and if not, whether the failure to meet such targets was reasonable in the circumstances.

��+��;��|��;��;��;��+��Intermediate Parent Company, Singer Asia Ltd. and subsequently approved by the Board.

Assessment of performance of the Group CEO is carried out by both Intermediate Parent Company’s Board and the local Board at the end of each year to ensure that pre-agreed targets have been achieved or if not whether there are acceptable reasons for not achieving them.

B. Directors’ Remuneration

B.1 Remuneration Procedure

Main Principle "��the remuneration packages of individual Directors. No Director should be involved in deciding his/her own remuneration.




Establishment of the Remuneration Committee

B.1.1 ��interest, the Board of Directors should set up a Remuneration Committee to make recommendations to the Board, within agreed terms of reference, on the Company’s framework of remunerating Executive ��?��;#�� @��of Reference for Remuneration Committees are set out in Schedule C.

��"��|�remuneration and perquisites of the Chairman, Group CEO, Independent Directors and Executive Directors of the Board of the Company including Alternate Directors and approve recommendations made by the !��"��#��$%��"��$%��of Singer Asia Ltd.’.

Singer Asia Ltd., is the Intermediate Partner of the Company.

��*��





Composition of the Remuneration Committee

B.1.2 Remuneration Committees should consist exclusively of Non-Executive Directors, and should have a Chairman, who should be appointed by the Board.

��"�� K�� Non-Executive Directors and Chairman who is also a Non-Executive Director. Group CEO and Finance Director participate by invitation.

��"��K��Q��;#��"��|��!��"#$��the Finance Director assist the Committee by providing the relevant information and participating in its analysis and deliberations.

Chairman and Members of the Remuneration Committee

B.1.3 ��"��*�� the Remuneration Committee should be listed in the Annual Report each year.

Please refer page 143 of the Remuneration Committee Report for details of the Chairman and Members of the Board Remuneration Committee.

Determination of remuneration of Non-Executive Directors

B.1.4 �� |�� required by the Articles of Association the shareholders, should determine the remuneration of Non-Executive Directors, including members of the Remuneration Committee, within the limits set in the Articles of Association. Where permitted by the Articles, the Board may delegate this responsibility to a Subcommittee of the Board, which might include the CEO.

After consideration of the recommendation made ��!��"��#��$%�� "��$%��<��+��=��|�� decides the remuneration of the Non-Executive ��Q��;#��for being a Director of the Board and an additional fee for either chairing or being a member of a Board <��>incentive payments.

Consultation of the Chairman and access to professional advice

B.1.5 ��'��"��should consult the Chairman and/or CEO about its proposals relating to the remuneration of other Executive Directors and have access to professional advice from within and outside the Company, in discharging their responsibilities.

��"��external independent professional advice on matters falling within its purview, at the Company’s expense. Views of the Chairman and Group CEO are obtained as they too are members of the said Board - Subcommittee.

��*��


B.2 Level and Make - Up of Remuneration

Main Principle =��#��Q��;#��%��needed to run the Company successfully. A proportion of Executive Directors’ remuneration should be structured to link rewards to corporate and individual performance.




Executive Directors’ remuneration package

B.2.1 ��'��"��should provide the packages needed to attract, retain and motivate Executive Directors of the quality required but should avoid paying more than is necessary for this purpose.

��'��"��Board ensure that Executive Director - Group CEO and ��#��;�?+��Q��;#��@� ��are provided with an attractive remuneration package.

Comparison of remuneration with other Companies/Other Companies in the Group

B.2.2

B.2.3

��'��"�� levels of remuneration of the Company, relative to other companies. It should be aware what comparable companies are paying and should take account of relative performance, but should use such comparisons with caution, mindful of the risk that they can result in an increase of remuneration levels with no corresponding improvement in performance.

��'��"��should be sensitive to remuneration and employment conditions elsewhere in the Company or Group of which it is a part, especially when determining annual salary increases.

+�� J��experienced workforce and reward performances. ��compensation appropriate for each business within the Group and commensurate with each employee’s level of experience and contribution, bearing in mind the business performance and long-term shareholder returns.

Performance-based remuneration of Executive Directors

B.2.4 ��;��elements of remuneration of Executive Directors should be designed and tailored to align their interests with those of the Company and main stakeholders and to give these Directors appropriate incentives to perform at the highest levels.

$��#��!��CEO are set at the beginning of the year and the remuneration including the performance bonus is decided based upon the degree of achievement of such pre-set targets.

Executive share options

B.2.5 Executive share options should ��?��|�less than market price prevailing at the time the exercise price is ��@|��by the Listing Rules of the Colombo Stock Exchange.

Presently the Company does not have an Executive Share Option Scheme.

��*��





Designing the remuneration of Executive Directors

B.2.6 In designing schemes of performance-related remuneration, Remuneration Committees should follow the provisions set out in Schedule D.

Please refer Remuneration Committee Report on page 143.

Early termination of Executive Directors

B.2.7

B.2.8

Remuneration Committees should consider what compensation ��?��@��&�contracts of service, if any, entail in the event of early termination. Remuneration Committees should in particular, consider the advantages of providing explicitly for such compensation commitments to apply other than in the case of removal for misconduct, in initial contracts.

Where the initial contract does not explicitly provide for compensation commitments, Remuneration Committees should, within legal constraints, tailor their approach in early termination cases to the relevant ��should be, to avoid rewarding poor performance while dealing fairly with cases where departure is not due to poor performance.

Not applicable to the Board except for Group "��#��$%��#�� Directors who are employees of the Company, and their terms of employment are governed by the contract of service/employment.

Level of remuneration of Non-Executive Directors

B.2.9 Levels of remuneration for Non-Executive Directors should ��and responsibilities of their role, taking into consideration market practices. Remuneration for Non-Executive Directors should not normally include share options. If exceptionally options are granted, shareholder approval should be sought in advance and any shares acquired by exercise of the options should be held until at least one year after the Non-Executive Director leaves the Board. Holding share options could be relevant to the determination of a Non-Executive Director independence. ?��+�}�}@

Non-Executive Directors of the Company are paid nominal fees commensurate with their time and role in the Company and taking into consideration market practices and recommendations made by the Group "��#��$%��<��+��=��|��Intermediate Parent of the Company.

Non-Executive Directors are not included in share options as there is no scheme in existence.

��*��


B.3 Disclosure of Remuneration

Main Principle ��"��&�+��'��<��'��whole.




Disclosure of Remuneration

B.3.1 ��+��'�� out the names of Directors ?��Company’s Committee in the ��!��"��@�comprising the Remuneration Committee, contain a statement of remuneration policy and set out the aggregate remuneration paid to Executive and Non-Executive Directors.

Please refer Remuneration Committee Report on page 143 for disclosure on the names of Remuneration Committee members and Remuneration Policy of the Company.

Please refer Note 38.7 to the Financial Statements on page 203 for aggregate remuneration paid to Executive and Non-Executive Directors.

C. Relations with Shareholders

C.1 Constructive use of Annual General Meeting (AGM) and Conduct of General Meetings

Main Principle Boards should use the AGM to communicate with shareholders and should encourage their participation.




Use of Proxy Votes C.1.1 Companies should count all proxy votes and should indicate the level of proxies lodged on each resolution, and the balance for and against the resolution, after it has been dealt with on a show of hands, except where a poll is called.

��"��count all proxy votes to indicate to the Chairman the level of proxies lodged on each resolution and the number of votes for and against the resolution.

Separate resolution for all separate issues at the AGM

C.1.2 Companies should propose a separate resolution at the AGM on each substantially separate issue and should in particular propose a resolution at the AGM relating to the adoption of the report and accounts.

Company proposes a separate resolution at the AGM on each substantially separate issue.

Further, adoption of the Annual Report of the Board ��"�� Audited Financial Statements together with the Report of the Auditors thereon are considered as a separate resolution.

Availability of all Subcommittee Chairmen

C.1.3 ��"��should arrange for the Chairmen of the Audit, Remuneration and Nomination Committees to be available to answer questions at the AGM if so requested by the Chairman.

��"��"��"��of all Board Subcommittees namely, Audit and Remuneration are present at the AGM to answer the questions under their purview.

��*��





Adequate Notice of the AGM

C.1.4 Companies should arrange for the Notice of AGM and related papers to be sent to shareholders at least as determined by statute, before the meeting.

A copy of the Annual Report including Financial Statements, Notice of Meeting and the Form of the Proxy are sent to shareholders 15 working days prior to the date of the AGM, as requested by statute, in order to provide the opportunity to all the shareholders to attend the AGM.

Procedures of Voting at AGM

C.1.5 Companies should circulate with every Notice of General Meeting, a summary of the procedures governing voting at General Meetings.

A summary of the procedures governing voting at General Meeting is circulated to shareholders with every Notice of General Meeting.

C.2 Major Transactions

Main PrincipleFurther to compliance with the requirements under the Companies Act, Directors should disclose to shareholders all proposed corporate transactions, which if entered into, would materially alter/vary the Company’s net assets base or in the case of a Company with subsidiaries, the consolidated Group net asset base.




Disclosure on �*��&

C.2.1 Prior to a company engaging ��*��&|��acquisition, sale or disposition of greater than half of the net value of the Company’s assets or that of a subsidiary which has a material bearing on the consolidated net assets of the Company, Directors should disclose to shareholders all material facts of such transactions.

��|�� <��]~}��"��&�+��Q��z��{��z� ��Q��+��Company or Consolidated Group Net Asset Base.

�� "�� >Annual Financial Statements, if any.

��*��


D. Accountability and Audit

D.1 Financial Reporting

Main Principle��"��&��|��prospects.




Board’s responsibility for Statutory and Regulatory Reporting

D.1.1 ��&��to present a balanced and understandable assessment extends to interim and other price-sensitive public reports and reports to regulators, as well as to information required to be presented by statutory requirements.

�� regulatory and statutory reporting in a balanced and ��given in the Statement of Directors’ Responsibility on page ]}{��

��"�� J��of the Companies Act No. 07 of 2007 in the preparation ��+��:��<�� prepared and presented in conformity with Sri Lanka Accounting Standards. Further, Company has complied with the reporting requirements prescribed by the regulatory authority such as the Colombo Stock Exchange.

K��<��"��;�<��:��?=��@��="�has also complied with the requirements of the Finance Companies Act No. 78 of 1988 and amendments thereto and reporting requirements prescribed by the regulatory authorities such as the Central Bank of Sri Lanka and the Colombo Stock Exchange. Given below is a table containing the dates on which the annual and Interim Financial Statements were uploaded to the CSE website/dispatched to the shareholders in the year under review:

Report Date of Dispatch or Upload Status

Annual Report for the year ended 31st December 2012 06th March 2013 Compliant

]�� 2013 07th May 2013 Compliant

{�� 2013 15th August 2013 Compliant

�� 2013 8th November 2013 Compliant

�� 2013 28th February 2014 Compliant

Directors’ Report in the Annual Report

D.1.2 ��&�'��|� ��forms part of the Annual Report, should contain declarations by the Directors ��;

� the Company has not engaged in any activity which contravenes laws ��¡

��+��'�� +��"��]�z��]}]� covers all of these sections.

Addition to that company has established procedures to ensure compliance with all applicable statutory and ��J��+�� !��"��$%��and are responsible for ensuring proper compliance with applicable laws and regulations.

A compliance statement is tabled at each Board meeting ��"��"��$%��

��*��





� the Directors have declared all material interests in contracts involving the Company and refrained from voting on matters in which they were materially ��¡

� the Company has made all endeavours to ensure the equitable treatment of ��¡

� the business is a going concern, with supporting assumptions ��J��¡��

� they have conducted a review of the internal controls, covering ��|��and compliance controls and risk management, and have obtained reasonable assurance of ��successful adherence therewith, and, if it is unable to make any of these declarations, to explain why it is unable to do so.

��"��&�� <��z�]��Colombo Stock Exchange Listing Rules on Corporate Governance and details of such compliance are discussed on pages 131 and 132 of this Report.

Statements of Directors’ and Auditors’ Responsibility for the Financial Statements

D.1.3 ��+��'��contain a statement setting out the responsibilities of the Board for the preparation and presentation of Financial Statements, together with a statement by the Auditors about their reporting responsibilities.

��<��&�'��&�� given on Page 152.

��K��+��&�'��&��]}�� states the Auditor’s responsibility.

��*��





Management Discussion and Analysis

D.1.4 ��+��'��contain a ‘Management Discussion and Analysis’, discussing, among other issues:

� industry structure and ��¡

� ��¡� ��¡� internal control systems

��J��¡� social and environmental

protection activities carried ��"��¡

� ��¡� material developments in

human resource/industrial ��¡��

� prospects for the future.

Please refer Chairman’s Letter on Pages 6 to 9, Group "��#��$%��&�'�� ]]��]}|� '�� $��?*�� +��"��@�on page 30, Embracing the Future and Caring for Posterity on page 62 and Result in Perspective on page 52 of this Annual Report.

Declaration by the Board on going concern of the business

D.1.5 ��that the business is a going concern, with supporting ��J��to which the Board should give due consideration when adopting the going concern assumption are set out in Schedule E to this Code.

Please refer page 147 of this ‘Annual Report to the Board of Directors’ and the ‘Statement of Directors’ Responsibility’ on page 152 for the required declaration.

Summon on EGM to notify serious loss of capital

D.1.6 In the event the net assets of the Company falling below 50% of the value of the Company’s shareholders’ funds, the Directors shall forthwith summon an Extraordinary General Meeting of the Company to notify shareholders of the position and of remedial action being taken.

Likelihood of such occurrence is remote. However, should the situation arise, an EGM will be called for and ��

��*��


D.2 Internal Control

Main Principle��&��"��&�assets.




Annual Review ��of Group’s system of internal control

D.2.1 ��|� at least annually, conduct a review of the �� Group’s system of internal controls, so as to be able to report to shareholders as required ��]�{�� made the responsibility of the Audit Committee.

��"��&��implementation of all policies and decisions of the Board. �� absolute assurance that all aspects are safeguarded.

In year 2012, Board of Directors appointed Messrs Ernst and T��;�"��+��and control review and to document said internal system and ��this assignment was completed and some of the areas of recommendation were implemented in the year 2013 and balance part of the assignment is being currently carried out and expected to be completed in year 2014.

��"��operations to apply these internal controls, while the Internal +��

��"��&�� Corporate Internal Audit Division of Retail Holdings NV, the `��"��<��?<��=��@��="�

��"�� |��"��

��'��Management, who reports to the Board Audit Committee and Group CEO and the Corporate Internal Auditor.

In relation to the retail network, the internal audit function includes an individual risk assessment for every outlet directly ��<��?<��=��@��="|��;

1. Receivables management

2. Inventory management

3. Cash management

4. Internal checks and balances

}�� #��

Each location is graded by the Internal Audit Department based on its adherence to controls and its administrative ��mentioned above.

Review the need for internal audit function

D.2.2 Companies which do not have an internal audit function should from time to time review the need for one.

��'��*��K��Audit is responsible for internal audit functions.

��*��


D.3 Audit Committee

Main Principle�� |�� "��&�Auditors.




Composition of the Audit Committee

D.3.1 ��+��"��be comprised of a minimum of two Independent Non-Executive ��?�� company has only two Directors ��@��by Non-Executive Directors, a �� independent, whichever is higher. ��"��"��should be a Non-Executive Director, appointed by the Board.

All members of the Board Audit Committee are Independent Non-Executive Directors.

Details of the members, invitees and Secretary of the Committee are found on page 142 of the ‘Audit Committee Report’ under the heading ‘Composition of the Committee’.

Duties of the Audit Committee

D.3.2 ��+��"��should include keeping under review the scope and results of ��|��of the Auditors. Where the Auditors also supply a substantial volume of non-audit services to the Company, the Committee should keep the nature and extent of such services under review, seeking to balance ��|��value for money.

As stated in the Report of the Audit Committee of the Company it regularly reviews scope, results and ��+��

Details of ‘Duties of the Audit Committee’ are found on page 142 of the ‘Audit Committee Report’ under the heading ‘Responsibilities and Duties of the Committee’.

��'��the Audit Committee

D.3.3 ��+��"�� Reference, dealing clearly with its authority and duties. ?+��"��@

Detailed guidance on the scope and functions of the Audit Committee can be found in the Code of Best Practice on Audit Committees issued ��K��"��+��<��=��?K"+<=@�in May 2002.

��'��+��"��"��+��"��explains the purpose of the Committee, its duties and responsibilities together with the scope and functions ��"��"�� the matters pertaining to statutory and regulatory ��|�� to the External Auditors, internal audit and risk management procedures of the Company.

��*��





Disclosure of names of the members of the Audit Committee

D.3.4 ��?�� Company’s Committee in the case ��!��"��@��the Audit Committee should be disclosed in the Annual Report.

��"�� make a determination of the independence of the Auditors and should disclose the basis of such determination in the Annual Report.

��+��'��contain a Report by the Audit Committee, setting out the manner of compliance by the Company, in relation to the above, during the period to which the Annual Report relates.

Names of the members of the Audit Committee are given on page 142 under the section on the ‘Composition of the Committee’ and disclosure on the independence of the Auditors is found on page 150 under the ‘Auditors’ in the ‘Annual Report of the Board ��+��"��&��147 to 151.

D.4 Code of Business Conduct and Ethics

Main PrincipleCompanies must adopt a Code of Business Conduct and Ethics for Directors and members of the senior management team and must promptly disclose any waivers of the Code for Directors or others.




Disclosure of Code of Business Conduct and Ethics

D.4.1 All Companies must disclose whether they have a Code of Business Conduct and Ethics for Directors and members of the senior management team and if they have such a Code, make an affirmative declaration in the Annual Report that all Directors and members of the senior management team have complied with such Code, and if unable to make that declaration, state why they are unable to do so.

Company has an internally-developed Code of Conduct. +��|��*��Senior Managers are bound by the Company’s written Code of Ethics that includes the following aspects:

� #��|�� performing one’s duties.

� Avoid situations where personal interest might �� "��¡��|�disclose such interest in advance.

� *��sensitive information.

� Work within applicable laws and regulations.

� Safeguard the Company’s assets.

��*��





Each Company may determine its own policies in the formulation of such a Code, but all Companies should address the following important topics in their respective Codes:

� ��¡

� ��¡

� ��¡

� ��¡

� protection and proper use of "��¡

� compliance with laws, rules ��?�� @¡��

� encouraging the reporting of any illegal or unethical behaviour.

� +�� concerned or the Company’s image.

� Strictly avoid giving or accepting any kind of bribe, either directly or indirectly.

� Strictly avoid making contributions for political funds, either directly or indirectly.

� Strictly avoid any kind of sexual harassment.

��"�� ;blowing procedure and encourages any employee who suspects wrong doing at work, whether by management, peers or any other employee, to raise their concerns.

Other Policies In addition, the Company implements policies covering:

� Recruitment and selection

� Financial integrity

� Use of Company property including computers

� Non-harassment in the work place

� Environment, safety and health

� <��K��

+%��<��by the Chairman

D.4.2 ��"��%��Company’s Annual Report that he is not aware of any violation of any of the provisions of the Code of Business Conduct and Ethics.

Please refer Chairman’s Letter on page 6 to 9 in this Report.

D.5 Corporate Governance Disclosures

Directors should be required to disclose the extent to which the Company adheres to established principles and practices of good Corporate Governance.




Disclosure of Corporate Governance

D.5.1 ��the Company’s Annual Report a Corporate Governance Report, setting out the manner and extent to which the Company has complied with the principles and provisions of this Code.

��'��]��]�� <��?<��=��@��="� has complied with the principles and provisions of the Code.

��*��


SHAREHOLDERS

E. Institutional Investors

E.1 Shareholder Voting

Main PrincipleInstitutional shareholders have a responsibility to make considered use of their votes and should be encouraged to ensure their voting intentions are translated into practice.




Communication with Shareholders

E.1.1 A listed Company should conduct a regular and structured dialogue with shareholders based on a mutual understanding of ��+��dialogue, the Chairman should ensure the views of shareholders are communicated to the Board as a whole.

K��the mutual understanding, the Board carries out dialogues with its shareholders at General Meetings. K��|��+��!��*��?+!*@�of the Company plays a critical role. Voting of the shareholders is crucial in carrying a resolution at the +!*��"�� and communicates the views and queries of the ��<��Management in order to ensure that the views are properly communicated to the Company.

<�� :��Statements and the Annual Report, which the Company considers as its principle communication �� are also available on the Company’s website - www.singersl.com and are provided to the Colombo Stock Exchange.

Any information that the Board considers as price sensitive is disseminated to the shareholders as necessary.

E.2 Evaluation of Governance Disclosures




Due weight by Institutional Investors

E.2.1 When evaluating Companies’ governance arrangements, particularly those relating to Board structure and composition, institutional investors should be encouraged to give due weight to all relevant factors drawn to their attention.

��K��K��weight to matters relating to the Board structure and composition, when they consider resolutions relating to Board structure and composition.

��*��


F. Other Investors

F.1 Investing/Divesting Decision




Individual Shareholders

F.1 Individual shareholders, investing directly in shares of companies should be encouraged to carry out adequate analysis or seek independent advice in investing or divesting decisions.

Individual investors are encouraged to carry out adequate analysis or seek independent advice in investing or divesting decisions.

Individual Shareholder Voting

F.2 Individual shareholders should be encouraged to participate in General Meetings of companies and exercise their voting rights.

Individual shareholders are encouraged to participate in General Meeting of the Company and exercise their voting rights.

SECTION B

��"��&��J��"��=��'�J��<��z�]��"��!��'��=��"��"��<��#��"��&��level of conformity to CSE’s Listing Rules which comprise the following fundamental principles:

� Non-Executive Directors

� Independent Directors

� Disclosures Relating to Directors

� Remuneration Committee

� Audit Committee

�� "��&�� <��z�]��"<#�=��'��"��Governance as at 31st December 2012:

Rule No. Corporate Governance Rule Details of Compliance

Board of Directors

7.10.1 Number of Non-Executive Directors - One-third ��|��minimum of two.

��|� six of whom are Non-Executive Directors.

7.10.2 Number of Independent Directors - One-third ��Q��;#��|�� minimum of two.

� ��Q��;#��

7.10.3 Disclosure Relating to Directors’ Independence. � ��K��Q��;#��

��*��


Rule No. Corporate Governance Rule Details of Compliance

Remuneration Committee

7.10.4 ?@�Q��K��Q��;#�� Directors in the Committee to be:-

� �� ? ��"�� @|��

� �� to be independent.

��"��Q��;#��|�two of whom are Independent Non-Executive Directors.

Separate Committee to be formed for the Company or the Listed Parent’s Remuneration Committee to be used.

A separate Remuneration Committee was formed for the Company.

Chairman of the Committee to be a Non-Executive Director.

��Q��;#��Independent Director as the Chairman of the Committee.

?�@�:��"�� '��"��'��functions of the Committee.

Audit Committee

7.10.5 ?@�Q��K��Q��;#��in the Committee to be:-

��"�� who are Independent Non-Executive Directors.

� �� ? ��"�� @|��

� �� to be independent.

Separate Committee to be formed for the Company or the Listed Parent’s Committee to be used.

A separate Audit Committee was formed for the Company.

Chairman of the Committee to be a Non-Executive Director.

��Q��;#��Director as the Chairman of the Committee.

Chairman or one member of the Committee to be a member of a recognised professional accounting body.

��"��"�� of a recognised professional accounting body.

CEO and CFO to attend committee meetings, unless otherwise determined by the Audit Committee.

Group CEO attends by invitation.CFO attends by invitation.

?�@�:��"�� +��"��'�� of the Committee.

��*��


Board, Audit Committee and Remuneration Committee Attendance

��|�+��"��'��"��are as follows:

Number of Meetings, Circular Resolutions and Dates

Board Meetings 04

Audit Committee Meetings 07

Remuneration Committee Meetings 03

Circular Resolutions Passed 23

Board Meetings Audit Committee Meetings Remuneration Committee Meetings

28th February 2013 15th February 2013 29th January 2013

07th May 2013 22nd April 2013 9th April 2013

12th August 2013 03rd May 2013 23rd July 2013

08th November 2013 10th July 2013

30th July 2013

4th November 2013

19th November 2013

Individual Attendance

Name Directorship Status Board Audit Committee


Mr. H.D.S. Amarasuriya - Chairman Non-Executive 4/4 – 3/3

=��!�"�� Independent Non-Executive

1/1 2/2 2/2

��<�� Independent Non-Executive

4/4 6/7 3/3

Deshabandu A.M. de S. Jayaratne ?+��*��+�Q��*��;�'��@

Independent Non-Executive

4/4 6/7 3/3

Mr. H.A. Pieris - Group CEO ?+��*��=�Q�<��<��@

Executive 4/4 – 2/3

*��!��?+��*��*�� @¨ Non-Executive 4/4 – –

*��$&��?+��*��*��+��<��@¨¨ Non-Executive 4/4 – –

*��?+��*��!��@¨¨¨ Non-Executive 4/4 – –

* Alternate Director Mr. M.H. Wijewardene attended three meetings.** Alternate Director Mr. M.P.A. Salgado attended two meetings.*** Alternate Director Mr. V.G.K. Vidyaratne attended one meeting.

��*��


PROTECTING OURSELVES

Risk is an integral part of any business. It is a matter of identifying the sources of risk, their likelihood of occurrence and impact, and then developing a comprehensive framework to address them. Such a systematic approach also raises a few questions, like determining one’s appetite for risk and establishing thresholds, bearing in mind that risk and return go hand in hand. So it’s a question of striking a balance and managing risk.

Over the years Singer has developed a set of clear risk management objectives and a well-established strategy to deliver them, through core risk management processes.

At a strategic level, our risk management objectives are:-

� ��"��&��

� To formulate the Company’s Risk Appetite and ensure ��

� To optimise risk/return decisions by taking them as closely as possible to the business, while establishing strong and independent review and challenge structures.

� To ensure that business growth plans are properly ��

� ��deliverables remain possible under a range of adverse business conditions.

� To help executives improve the control and co-ordination of risk taking across the business.

The Company’s approach is to provide direction on:-understanding the principal risks to achieving the Company strategy; establishing risk appetite; and establishing and communicating the risk management framework. The �� |��|�control, report, and manage/challenge.

The Company’s risk management strategy is broadly unchanged from 2011.

The Risk Management Process

During the year under review, the Company continued to review and improve its risk management function in line with its Risk Management Objectives.

Steps Activities

Data Collection and Analysis

� The management information system (MIS) to pick up relevant business-critical information.

� review and validation before it is submitted to senior management.

Assess � Agree and implement measurement and reporting standards and methodologies.

Control � Establish key control processes and practices, including limit structures, impairment allowance criteria and reporting requirements.

� Monitor the operation of the controls and adherence to risk direction and limits.

� Provide early warning of control or appetite breaches.

� Ensure that risk management practices and conditions are appropriate for the business environment.

Report � Interpret and report on risk exposures, concentrations and risk-taking outcomes.

� Interpret and report on sensitivities and Key Risk Indicators.

� Communicate with relevant parties.

Manage � Review aspects of the Company’s ��

� Assess new risk-return opportunities.

� Advise on optimising the Company’s ��

� Review and challenge risk management practices.


Internal, External and Corporate Audit

Internal, external and corporate audits are crucial in the risk management process. Reports on the Group’s operational and �� <��+�� ;��+��"��

��!��&��|��be managed.

The internal audit team meets with the Finance Department every month to share information and exchange perspectives. K��

Risk Mitigation Activities

1. Macroeconomic Factors

Economic EnvironmentThe Group’s business operations are sensitive to economic conditions and in particular to levels of consumer spending. Any delay in ��expenditure and therefore our revenue. There is an on going risk to our business of increases in the cost of key products.

�� +��

�� +��

�� <��*�� of the economic conditions on the Group’s budget and strategic plans.

� Emphasise excellent quality, service, value for money and up-to-date ��|� ��

� Renewal and transformation plan to improve our business performance irrespective of macroeconomic factors strategy and business planning which takes into account varying economic scenarios.

Market Specific CharacteristicsSeasonality - A substantial proportion of ��J��|� which includes the Christmas and New Year season. Adverse trading in this relatively ��the full year’s results.

� Financial planning takes into account expected peaks and troughs during the year and the business is run accordingly.

�� K��|� which gives a regular stream of income over the course of the year.

��;��a common feature across most electrical goods categories for a number of years, primarily driven by technological advances ��%��

�� #�� it becomes available to the market.

� Growth of services related business to increase the number and value of non-product sales.

�� K��

� Control of stock and strong management of clearance and exit routes.



2. Competitor and Marketplace Risk

CompetitionCompetitors reduce the Group’s market ��>�� markets.

� Renovation and transformation plan is improving our showrooms, cost structure and service across all channels.

� Continuing development of strong international brands.

�� #��|��

� Building ever stronger relationships with suppliers.

� Expand and improve after-sales service network.

Changing Technology/Consumer PreferencesRisk that we fail to capitalise on new technology or emerging trends to maximise revenues and fail to meet the expectations of customers.

� Strong supplier relationships.

�� "��

� Showrooms renovation to take into account emerging trends in showroom layouts.

� Exciting product launches to make our showrooms the destination for the latest technology.

� Continued focus on ensuring we have an excellent range across all price points.

�� "�� to improve product knowledge.

� A loyalty programme that encourages customers to stay with the Singer brand and its products.

Product RiskProducts could turn out to be defective or inappropriate for the market in terms of price, functionality or perceived value. ��In such instances, the Company is exposed to market risks arising from consumer ��J�� of its products.

�� "��&�� and upgraded whenever necessary.

� Established quality control measures as well as product testing through sampling are performed on all product lines.

�� ;��<��`�� or components from external suppliers before order placement.

3. Operational Risk

PeopleA failure to attract, retain, develop and motivate the best employees across all our �� %��our ability to deliver our operational and ��=��product quality, output, market share as well as the Company goodwill and reputation.

� Recruit the best people with the right skills.

�� $��

� Remuneration packages are benchmarked to ensure that they remain competitive, including incentive arrangements where appropriate.

� Collective agreements with the labour unions to maintain an equitable balance between the interests of employer and employee and provide a basis for negotiations when issues arise.

� Procedures have also been laid down in responding to grievances ��

Protecting Ourselves



Fraud, Compliance and Internal Controls+�� geographical scope, the potential for fraud and dishonest activity by our suppliers, customers and employees increase.

� Clear behavioural guidance given to employees through operational manuals.

� Appropriate procedures and controls set out and audited across the ��¡�K��+��"��+��undertake detailed investigations into all business areas and report ��+��"��

� Regular update and new introduction of relevant policies and procedures.

� Whistle-blower policy.

� Periodical review of the internal controls by outsourced consultants.

IT Systems and Infrastructure+��K��our retail operations would impact our ability to trade.

�� "��

� Regular backups of all databases and mission-critical information.

�� $�;��;��

� Regular follow-up review on recommendation given by external K��

�� K��K��%��

�� #�� %�� K��

Supply Chain��outlets is crucial. We work with a number of key overseas and local suppliers our business, could be at risk of both interruption of supply and of failure of such key suppliers and service providers.

� Regular review of distribution plan.

� Monthly operational meeting to review the forecast, level of inventory, and procurement requirement etc.

� Long-standing relationships with many suppliers help to minimise risks in this area.

� Reduce dependability on a single service provider.

Asset RiskRisks associated with the physical assets of the Company include the destruction, loss or theft as well as technical and other defects.

�� #��

�� |� ��

� Procedures in place to control technical and other defects include purchasing from reputable suppliers who comply with acceptable ��J��¡��|��;�� ?K<$�^��]@�J��|� ��¡�� of adequate spare parts.

� Provisioning is also made against obsolete inventory, warranty claims and doubtful debtors. Warranty costs are shared with the Company’s �� a well-reputed insurance company.




4. Financial Risk

Liquidity RiskInadequate liquidity can have an adverse impact on ongoing operations, marketing and investment in new products and brands.

�� J��"�� reported to the Board.

�� a healthy industry-related gearing ratio is maintained.

�� "��&��

Interest-Rate Risk Increase in interest rates will have an adverse ��

� Fluctuating interest rates are minimised by striking a balance between short- and long-term borrowings.

� Floating-rate debentures are sometimes issued to capitalise on existing interest rates.

�� "��&�� help ensure ready access to funds at attractive rates.

Credit Risk��"�� reneges on a hire-purchase agreement. Such exposure cannot be avoided entirely since consumer credit is an integral part of the Company’s retail operations, and is used to encourage and enable consumers to purchase.

� Branch managers act as del credere agents.

� Undertaking a thorough appraisal of the client before credit is extended.

� Credit appraisals of dealers are undertaken to ascertain whether they ��¡��|��guarantee or security deposit is requested.

� Details of customers and dealers who have defaulted on payments ��|�� undertake credit evaluations of customers and dealers.

�� '��;��

� A fully equipped and trained Credit Supervision team is available.

Investment RiskWhile investment in new products and geographical expansion is vital for the Company to remain competitive, it raises fresh risks.

� Appraisal before an investment is made.

�� +�� can be met and examines the impact of technological and other factors on the investment decision.

� Post-investment analysis and performance tracking is in place including ��




5. Other Risk

Governance Risk��"��non-compliance with relevant health, safety and environmental statutes and leading to loss of reputation and goodwill, possible ��

� Preventive action has been designed by the Company’s Legal Department.

� Frequent internal, external and corporate audits-monitor compliance.

�� "��&��area. International best practices are followed wherever possible.

�� "��warranty claims. Provisioning ensures that such claims do not have an adverse impact on operational and other aspects of the Company.

� Detailed, established procedures to ensure product integrity.

�� !��"��$%�� +��"��compliance with laws and policies.

Socioeconomic RisksSri Lanka’s socioeconomic and political environment has an impact on the consumer durables business as well as the investment climate.

�� '�� lower input prices and credit terms.

Environment and Climate ChangeAside from the general risks to humankind ��|��risk to which the Company is exposed concerns possible shortages of essential raw materials, such as wood for the manufacture of furniture and risks of environment pollution due to waste material.

�� opening up new marketing opportunities.

� Collaborate with Central Environment Authority to assist in E-waste ��

� All factories, warehouse and service centres complied with the requirement of environment regulations.

� Introduction of energy saving appliances.

Caveat Although the key sources of risk and their mitigation have been discussed in this document, no assurance can be given that the Company is fully protected against all possible risks. As noted in the opening paragraph, the best that can be achieved is reasonable management of risks through a �� |�evaluates and mitigates the negative impacts in a timely manner at multiple levels.

�� "��adequately assessed and managed to ensure the uninterrupted and ��


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AUDIT COMMITTEE REPORT

Preamble

��"�� <��!��to provide additional assurance on the reliability of the Financial Statements through a process of independent �� +��|��+��"��discharging their responsibilities on ensuring the quality ��Shareholders and the Public.

Composition of the Committee

As at year-end, the Audit Committee comprised two Non-Executive Directors of the Board namely Deshabandu +��<��+��"��"��!�"�� {��+��{�]��'��*��<��"��:��>"��$%��|�+��<��|�'��#��Auditors and when necessary, the Chairman/the Group Chief #��$%��Managers attend the meetings by invitation.

Responsibilities and Duties of the

Committee

��+��"��&��|��duties have been formalised through an Audit Committee Charter. By this, the Audit Committee is empowered among ��|��<��!�� J�� the internal control procedures, coverage of internal and external audit programmes, disclosure of Accounting Policies and Compliance with Statutory and Corporate Governance requirements.

��"��review of the reports of internal and external audits and ��control issues.

��+��"�� and internal control issues and suggests where necessary appropriate remedial measures.

��"�� |�K��+��#��+�� :��'��ensure compliance with mandatory, statutory and other regulatory requirements laid down by the authorities.

��+��"�� "��+��Report of the Corporate Internal Auditors of Singer Asia Ltd. Corporate Auditors carry-out an audit at least once a year.

��"��$%��<��!��&�compliance with the applicable laws and regulations, including any internal policy codes of conduct of its employees.

Meetings of Committee

During the year, seven Audit Committee meetings were held to discuss the reports of the Internal and External +��J�� also discussed at the meeting held on 24th February 2013. �� the Board of Directors for information and necessary action.

External Auditors

��+��"��*��*!�"��+��reappointed as the External Auditors for the year ending �]��{�]�|��shareholders at the Annual General Meeting.

��+��"�� invaluable contribution made to the Committee by the ��!�"�� {��+��2013, during his tenure of 18 years as Chairman of the Board Audit Committee.

Deshabandu Ajit Jayaratne Chairman - Audit Committee



REMUNERATION COMMITTEE REPORT

��'��"�� Non-Executive Directors and the non- executive Chairman ��<��!��:��<��"��"��K��Q��;#��!��"��#��$%��:��the Committee by providing the relevant information and participating in its analysis and deliberations.

��"��¥��|�remuneration and perquisites of Chairman, Group Chief #��$%��|�K��#��Directors of the Board of the Company including alternate ��*��!��"��#��$%��"��$%��<��+��=��|�<��+��=��Intermediate Parent of the Company.

��"�� J��*��

+��J�� provide compensation appropriate for each business within the Group and commensurate with each employee’s level of experience and contribution, bearing in mind the business performance and long-term shareholder returns.

��"�� the Group’s remuneration and fee structures to assure alignment with strategic priorities and with compensation ��

��"��

I wish to place on record the invaluable contribution made ��"��|��!�"�� passed away on 26th April 2013 during his tenure as the Chairman of Remuneration Committee.

I wish to thank the other members of the Committee, for their valuable contributions to the deliberations of the Committee.

I also wish to thank Mr. Asoka Pieris and Mr. Priyath Salgado for helping the Committee in its deliberations by providing the necessary information.

Dr. Saman KelegamaChairman - Remuneration Committee


Financial Calendar - 2013/14Annual Report 2012 28th February 2013

Thirty-Eight Annual General Meeting 27th March 2013

Interim Financial Statements in terms of Rule 8.3 of the Colombo Stock ExchangeFor the three months ended 31st March 2013 (unaudited) 7th May 2013

For the six months ended 30th June 2013 (unaudited) 15th August 2013

For the nine months ended 30th September 2013 (unaudited) 8th November 2013

For the twelve months ended31st December 2013 (unaudited) 28th February 2014

Annual Report & Annual General MeetingAnnual Report 2013 Approved 28th February 2014

Thirty-Ninth Annual General Meeting 27th March 2014

Final Dividend Payable20th March 2014

Proposed Financial Calendar - 2014/15For the three months ending 31st March 2014 (unaudited) May 2014

For the six months ending 30th June 2014 (unaudited) August 2014

For the nine months ending 30th September 2014 (unaudited) November 2014

For the twelve months ending 31st December 2014 (unaudited)February 2015

Annual Report and Accounts for 2014 (audited) March 2015

Fortieth Annual General Meeting March 2015

Singer (Sri Lanka) PLC Financial Reports

147Annual Report of the Board of Directors on ��+��"��

152Statement of Directors’ Responsibility

153Independent Auditors’ Report

154<��"��K��

155Statement of Financial Position

156<��"��#J��

158<��"��:��

159Notes to the Financial Statements


The Board of Directors of Singer (Sri Lanka) PLC have pleasure in

presenting their Report on the affairs of the Company together with

the Audited Financial Statements of Singer (Sri Lanka) PLC, and the

Audited Consolidated Financial Statements of the Group for the year

ended 31st December 2013.

Review of the YearThe Chairman’s Letter (pages 6 to 9), the Group Chief Executive

Officer’s Review (pages 11 to 15) and Review of Operations

(pages 30 to 49), describe the Company’s affairs and the Group’s

business and mention important events that occurred during the

year, and up to the date of this Report. Results in Perspective on

pages 52 to 59 elaborates the financial results of the Company/

Group. These reports together with the Audited Financial Statements

reflect the state of the affairs of the Company/Group.

Principal ActivitiesThe Company is engaged in Retail and Wholesale Marketing,

Financing, Assembling and Manufacturing and in Financial Services.

The Company markets Domestic and Industrial Sewing Machines,

Consumer Electronics, Household Appliances, Air Conditioners,

Furniture, Agricultural Implements, Motor Cycles, Telephones,

Mobile Phones, Personal Computers, Laptops, Cameras and provides

Financing through Hire Purchase and Loans. In addition, the

Company manufactures Furniture, Water Pumps, Paddy Threshers

and assembles Motor Cycles and Two Wheel Tractors. The Company

also acts as Bill Collection Agent for HSBC Credit Card, Amex Credit

Card, Standard Chartered Credit Card, Singer Finance, Mobitel,

Etisalat, Airtel, Lankabell, Sri Lanka Telecom, Dialog, Dialog Television,

Dialog Ez Cash, National Water Supply & Drainage Board,

Ceylon Electricity Board and is also a sub-agent for Western Union

Money Transfer.

The Company has one Subsidiary and one Associate Company and

their activities are given on page 208 of this Annual Report.

Independent Auditors’ ReportThe Independent Auditors’ Report on the Financial Statements is

given on page 153 in this Annual Report.

Financial StatementsThe Financial Statements for the year ended 31st December 2013 are

in accordance with the Sri Lanka Accounting Standards, SLFRS/LKAS,

issued by The Institute of Chartered Accountants of Sri Lanka and

the requirements of Section 151 (and Section 153 for consolidated

entity) of the Companies Act No. 07 of 2007.

The Financial Statements duly signed by the Directors are provided

on pages 154 to 203 in this Annual Report.

Accounting PoliciesThe accounting policies adopted in preparation of the Financial

Statements are provided in details in the Notes to the Financial

Statements on pages 159 to 203. The accounting policies adopted

are consistent with those of the previous financial year.

Property, Plant & EquipmentDuring the year under review, the Company and Group invested a

sum of Rs. 549,336,683/- (2012 - Rs. 557,235,220 /-) and

Rs. 585,063,470/- (2012 - Rs. 583,447,337/- ) respectively in

Property, Plant & Equipment.

Details of Property, Plant & Equipment and Intangible Assets and

their movements are given in Notes 12 and 13 to the Financial

Statements respectively.

Details of freehold lands and buildings are given in Note 12.16 to the

Financial Statements.

Market Value of PropertiesThe freehold property of the Company is revalued by

an Independent Qualified Valuer every two years and where there

is a substantial difference between the fair value and the carrying

amount of the freehold property the difference is transferred to

a revaluation reserve.

The most recent valuation was carried out as at 31st December

2012. The details of the valuation are given in Note 12.13 to the

Financial Statements on pages 175 to 176 in this Annual Report.

Investments On 10th September 2013, the Company invested Rs. 149,283,000/-

for a period of three years in Debentures issued by Singer Finance

(Lanka) PLC at an interest rate of 14% per annum. Movement in

investments during the year is disclosed under Notes 14, 15 and 16

to the Financial Statements.

Directors’ ResponsibilitiesThe Statement of the Directors’ Responsibility is given on page 152.

Corporate GovernanceThe Company has complied with Corporate Governance rules laid

down under the Listing Rules of Colombo Stock Exchange. The

Corporate Governance Section on pages 100 to 139 describes the

good Corporate Governance Principles adopted by the Company.

Annual Report of the Board of Directors on the Affairs of the Company


Profit and Appropriations

2013 2012Rs. Rs.

Group profit before tax for the year ended 31st December after deducting all expenses, known liabilities and depreciation amounts to 728,440,353 1,777,160,464

From this has to be deducted the income tax expense (206,374,628) (561,450,559)

Non-controlling interest (59,909,941) (55,696,216)

Making a profit for the year of 462,155,784 1,160,013,689

Total other Comprehensive Income (2,943,203) (21,987,248)

Total other Comprehensive Income - Non-Controlling Interest (63,141) (286,048)

To this has to be added a balance brought forward from the previous year 527,137,626 470,480,860

Interim Divided Year 2013 Rs. Nil per share (Year 2012- Rs. Nil per share) – –

And adjustment due to realisation on revaluation surplus 11,278,572 12,622,416

Acquisition of Non-Controlling Interest without change in control expenses – (4,810,872)

Rights Issue Expenses – (3,620,216)

Leaving a total available for appropiation of 997,565,637 1,612,412,581

The following appropriations have been approved:

Transfer to General Reserve – (300,000,000)

Transfer to Investment Fund (37,194,727) (22,739,295)

Transfer to Reserve Fund (12,826,700) (11,278,000)

Final dividend approved: Gross Rs. 2.50 per share (2012 - Rs. 6.00 per share) (313,024,025) (751,257,660)

Making a total appropriation of (363,045,452) (1,085,274,955)

Leaving a balance on Group basis to be carried forward of 634,520,185 527,137,626

The balance to be carried forward on Company only basis (excluding Group) will be 115,786,093 118,321,337

Dividends In terms of Article 7 of the Articles of Association of the Company,

a final dividend of Rs. 2.50 per share has been approved by the

Directors for the financial year ended 31st December 2013, for

payment on 20th March 2014. The Board has reasonable grounds

for believing that the Company would satisfy the Solvency Test

immediately after the distribution is made and accordingly the Board

of Directors has signed the Certificate of Solvency in accordance with

Section 57 of the Companies Act No. 07 of 2007.

The Board of Directors will obtain a Certificate of Solvency from the

Auditors prior to the date of despatch of the dividend payment.

Reserves (Excluding Non-Controlling Interest)Group reserves and retained Equity as at 31st December 2013

amounted to Rs. 4,964.1 million vs Rs. 5,256.2 million as at

31st December 2012. The breakup and movement are shown in the

Statement of Changes in Equity in the Financial Statements.

Stated CapitalAs per the terms of the Companies Act No. 07 of 2007, the

Stated Capital of the Company was Rs. 626,048,050/- as at

31st December 2013 and was unchanged during the year. Details are

given in Note 22 to the Financial Statements on page 183.

Events after the Reporting PeriodNo circumstances have arisen since the reporting date, which would

require adjustment or disclosure except for the following event:

(a) The Board of Directors has approved the final dividend

of Rs. 2.50 per ordinary share for the year ended

31st December 2013, for payment on 20th March 2014.

Statutory PaymentsThe declaration relating to statutory payments is made in the

Statement of Directors’ Responsibility on page 152.

Directors’ Interests and Interest Register Details of transactions with Director-related entities are disclosed in

Note 38 to the Financial Statements on pages 200 to 203 and have

been declared at the Board Meeting, pursuant to Section 192 (2) of

the Companies Act No. 07 of 2007.

Interest in Shares There were no share transactions by the Directors during the year in

the Company and in the Subsidiary Singer Finance (Lanka) PLC.



Board CommitteesAudit Committee

Following are the names of the Directors comprising the Audit

Committee of the Board:

Late Dr. G.C.B. Wijeyesinghe - Chairman up to 26th April 2013

Deshabandu A.M. de S. Jayaratne - Chairman from 7th May 2013

Dr. S. Kelegama

Mr. M.M.C. Priyanjith - Secretary

The Report of the Audit Committee on page 142 sets out the manner

of compliance by the Company in accordance with the requirements

of the Rule 7.10 of the Listing Rules of the Colombo Stock Exchange

on Corporate Governance.


Following are the names of the Directors comprising the

Remuneration Committee of the Board:

Dr. G.C.B. Wijeyesinghe - Chairman up to 26th April 2013

Dr. S. Kelegama - Chairman from 7th May 2013

Deshabandu A.M. de S. Jayaratne

Mr. H.D.S. Amarasuriya

Mr. M.P.A. Salgado - Secretary

The Report of the Remuneration Committee on page 143 contains a

statement of the remuneration policy. The details of the aggregate

remuneration paid to the Executive and Non-Executive Directors

during the financial year are given in Note 38.7 to the Financial

Statements on page 203.

Directors’ Indemnity and InsuranceThe Directors and Officers of the Company and Subsidiary are

covered in respect of Directors’ and Officers’ liability by the Insurance

Policy obtained by the Ultimate Parent Company, as per the

provisions in Article 44.

Share Information and Substantial ShareholdingsThe distribution of shareholding, public holding percentage, market

value of shares, twenty largest shareholders and record of scrip issues

are given on pages 205 to 207.

Earnings per share, dividends per share, dividend pay out and net

assets value per share are given in the Financial Highlights on page 5

of the Annual Report.

Directorate and ShareholdingThe names of the Directors of the Company as at 31st December 2013 and their brief profiles are shown on pages 20 and 21 and the inner back cover.

The Board of Directors place on record the invaluable contribution made to the Company by the late Dr. G.C.B. Wijeyesinghe who passed away on 26th April 2013. During his tenure of 18 years on the Board, he rendered invaluable service to the Company in various ways and in particular as the Chairman of the Audit and Remuneration Committees of the Company.

The Board has received notice from Deshabandu A.M. de S. Jayaratne that he has attained the age of 73 years on 30th April 2013. The Board has requested Deshabandu A.M. de S. Jayaratne to continue to serve as a Director of the Company, and Deshabandu A.M. De. S. Jayaratne consented to remain on the Board subject to the due compliance of the provisions of the Companies Act No. 07 of 2007 and has offered himself for reappointment to the Board.

The Directors recommended the resolution declaring that the age limit stipulated in Section 210 of the Companies Act No. 07 of 2007 shall not apply to Deshabandu A.M. de. S. Jayaratne who has attained the retirement age stipulated in Section 210 of the said Act and who has attained the age of 73 years and that his reappointment for a further period of one year is approved and to re-elect him in terms of Section 211 of the said Act No. 07 of 2007.

In terms of Article 24 (4) of the Articles of Association of the Company, Mr. Dr. S. Kelegama retires by rotation and being eligible, is recommended for re-election.

Shareholdings of Directors and Chief Executive Officer at the

beginning of the year and as at the end of the year are as follows:

Shareholding01.01.2013

No. of Shares

Shareholding31.12.2013

No. of Shares

Debentures held01.01.2013

No. of Debentures

Debentures held31.12.2013

No. of Debentures

Shareholding ofSinger Finance

(Lanka) PLC01.01.2013

No. of Shares

Shareholding ofSinger Finance

(Lanka) PLC31.12.2013

No. of Shares

Mr. H.D.S. Amarasuriya 89,482 89,482 – – 10,006 10,006

Mr. H.A. Pieris 2,000 2,000 – – 51,002 51,002

Late Dr. G.C.B. Wijeyesinghe – – – – – –

Dr. S. Kelegama – – – – – –

Deshabandu A.M. de S. Jayaratne – – – – – –

Mr. P.J. O’Donnell – – – – – –

Mr. J.J.Hyun – – – – – –

Mr. G.J. Walker – – – – – –

Mr. V.G.K. Vidyaratne 23,831 23,831 – – – –

Mr. M.H. Wijewardene – – – – – –

Mr. M.P.A. Salgado 4,000 4,000 – – 68,442 68,442

Mr. L.N.S.K. Samarasinghe 4,124 4,124 – – – –

Mr. A.N. Majeed (Resigned on 18th June 2013) 5,000 5,000 – – – –



The names of Directors holding office at the end of the financial year

in respect of subsidiary and Associate Company is given on page 208.

Independence of Directors In accordance with Rule 7.10.2 (b) of the Colombo Stock Exchange,

(CSE) Listing Rules, Deshabandu A.M. de S. Jayaratne and

Dr. S. Kelegama who are Non-Executive Directors of the Company,

have submitted a signed and dated declaration as per the specimen

given in Appendix 7A of continuing listing requirements of CSE.

Although, Deshabandu A.M. de S. Jayaratne has not met the criteria

mentioned in item (g) of Rule 7.10.4 of the CSE Listing Rules, the

Board of Directors of the Company is of the opinion that -

(i) Deshabandu A.M. de S. Jayaratne is nevertheless independent on

the following basis:

(a) His high standing in the society and business sector.

(b) His experience and knowledge particularly in the Accounting

Field will continue to be an asset to the Company.

(c) He does not participate in executive decision-making.

Although, Dr. S. Kelegama has not met the criteria mentioned in item

(g) of Rule 7.10.4 of the CSE Listing Rules, the Board of Directors of

the Company is of the opinion that -

(ii) Dr. S. Kelegama is nevertheless independent on the

following basis:

(a) His high standing in the society and business sector.

(b) His experience and knowledge particularly in the field of

Economics will continue to be an asset to the Company.

(c) He does not participate in executive decision-making.

(Deshabandu A.M. de. S. Jayaratne and Dr. S. Kelegama did not

participate in these deliberations and decisions taken pursuant

thereto as referred to above to avoid conflict of interests.)

EmploymentThe number of persons employed by the Group and the Company as

at 31st December 2013 was 1,637 (2012 - 1,475) and 1,402

(2012 - 1,284), respectively.

Details of human resource initiatives are detailed in the employees’

section of the sustainability report.

Corporate GovernanceDirectors’ Declarations

The Directors declare that having considered all information and

explanations made available to them that -

(a) the Company complied with all applicable laws and regulations

in conducting its business;

(b) the Directors have declared all material interests in contracts

involving the Company and refrained from voting on matters in

which they were materially interested;

(c) the Company has made all endeavour to ensure the equitable

treatment of shareholders;

(d) the business is a going concern with supporting assumptions or

qualifications as necessary; and

(e) have conducted a review of internal controls covering financial,

operational and compliance controls and risk management and

have obtained a reasonable assurance of their effectiveness and

successful adherence herewith.

The Corporate Governance report is given under the governance

section of the Annual Report.

DonationsDuring the year, donations amounting to Rs. 418,308/-

(2012 - Rs. 519,000/-) were made by the Company, of which

Rs. 134,000/- was paid to Government-approved charities.

Donations made by the Group is given in Note 9.

AuditorsThe Financial Statements for the period under review were audited

by Messrs KPMG, Chartered Accountants who offer themselves for

reappointment for the ensuing year. The Directors propose the

reappointment of Messrs KPMG, Chartered Accountants as Auditors

of the Company for the year 2014 subject to the approval of the

shareholders at the Annual General Meeting.

The audit and non-audit fees paid to the Auditors by the Company

and Group is disclosed in Note 9 on page 170 in this Annual Report.

As far as the Directors are aware, the Auditors do not have any

relationship or interest in the Company or its Subsidiary.



The Audit Committee reviews the appointment of the Auditor,

its effectiveness and its relationship with the Company including

the level of audit and non-audit fees paid to the Auditors. Details

on the work of the Audit Committee are set out in the Audit

Committee Report.

Notice of MeetingThe Thirty-Ninth Annual General Meeting will be held at the

Registered Office of the Company, No. 80, Nawam Mawatha,

Colombo 2, on Thursday, 27th March 2014 at 10.00 a.m.

The Notice of the Annual General Meeting of the shareholders is

given in page 212.

For and on behalf of the Board,

H.D.S. Amarasuriya H.A. PierisChairman Director/Group Chief Executive Officer

A.C.M. Irzan FCMA (UK)Company Secretary

Singer (Sri Lanka) PLC

Colombo

28th February 2014



The Companies Act No. 07 of 2007 requires Directors to ensure

that the Company keeps accounting records, which correctly record

and explain the Company’s transactions and prepare Financial

Statements that give a true and fair view of the Company’s state

of affairs as at the Reporting date and of the profit for the year.

It further requires the Financial Statements of a Group to give a true

and fair view of the state of affairs of the Group and the profit of the

Group for the year.

The Directors are also required to ensure that the Financial

Statements have been prepared and presented in accordance with

the Sri Lanka Accounting Standards (SLFRS/LKAS) and the Rules of

the Colombo Stock Exchange. They are also responsible for taking

reasonable measures to safeguard the assets of the Company

and in that context to have proper regard to the establishment of

appropriate systems of internal control with a view to the prevention

and detection of fraud and other irregularities.

The Directors are of the view that these Financial Statements

have been prepared in accordance with the Sri Lanka Accounting

Standards (SLFRS/LKAS) as laid down by The Institute of Chartered

Accountants of Sri Lanka.

The Directors endeavour to ensure that the Company maintains

sufficient records to be able to disclose, with reasonable accuracy,

the financial position of the Company and to be able to ensure

that the Financial Statements of the Company meet with the

requirements of the Companies Act, Sri Lanka Accounting Standards

(SLFRS/LKAS) and the Rules of the Colombo Stock Exchange.

The Directors have a reasonable expectation, that the Company and

Group have adequate resources to continue in operational existence

for the foreseeable future and therefore have continued to adopt the

going concern basis in preparing the accounts.

As required by Section 56 (2) of the Companies Act and in terms of

Article 7 (2) of the Articles of Association of the Company, the Board

of Directors has authorised the payment of dividends, being satisfied

based on information available to it that the Company would satisfy

the Solvency Test after such distributions in accordance with Section

57 of the Companies Act No. 07 of 2007. Accordingly, the Board

of Directors has signed the Certificate of Solvency. In respect of the

authorised final dividend, the Company shall forward to CSE, prior

to the date of dispatch of the dividend payment, a Certificate by

the Auditors to the effect that the Company is able to satisfy the

Solvency Test immediately after the distribution.

Messrs KPMG, Chartered Accountants, the Auditors of the Company,

have examined the Financial Statements made available by the Board

of Directors together with all relevant financial records, related data,

minutes of shareholders' and Directors' meetings and express their

opinion in their Report on page 153 of this Annual Report.

Compliance ReportBased on the Report of the Compliance Officer, the Directors confirm

that to the best of their knowledge and belief, all taxes, duties and

levies payable by the Company and its Subsidiary, all contributions,

levies and taxes payable on behalf of and in respect of the employees

of the Company and its Subsidiary and all other known statutory

dues as were due and payable by the Company and its Subsidiary

as at the Reporting date have been paid or were provided.

By Order of the Board,

A.C.M. Irzan, FCMA (UK)Company Secretary

Singer (Sri Lanka) PLC

Colombo

28th February 2014

Statement of Directors’ Responsibility


Independent Auditors' Report

TO THE SHAREHOLDERS OF SINGER (SRI LANKA) PLC

Report on the Financial Statements We have audited the accompanying financial statements of Singer

(Sri Lanka) PLC (“the Company”) and the consolidated financial

statements of the Company and its subsidiary (“the Group”), which

comprise the statements of financial position as at December 31,

2013, the statements of comprehensive income, changes in equity

and cash flows for the year then ended, and notes, comprising a

summary of significant accounting policies and other explanatory

information set out on pages 154 to 203 of the annual report.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation

of these financial statements in accordance with Sri Lanka

Accounting Standards. This responsibility includes: designing,

implementing and maintaining internal control relevant to the

preparation and fair presentation of financial statements that are

free from material misstatement, whether due to fraud or error;

selecting and applying appropriate accounting policies; and making

accounting estimates that are reasonable in the circumstances.

Scope of Audit and Basis of Opinion Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in

accordance with Sri Lanka Auditing Standards. Those standards

require that we plan and perform the audit to obtain reasonable

assurance whether the financial statements are free from material

misstatement.

An audit includes examining, on a test basis, evidence supporting

the amounts and disclosures in the financial statements. An audit

also includes assessing the accounting policies used and significant

estimates made by management, as well as evaluating the overall

financial statement presentation.

We have obtained all the information and explanations which to the

best of our knowledge and belief were necessary for the purposes of

our audit. We therefore believe that our audit provides a reasonable

basis for our opinion.

Opinion In our opinion, so far as appears from our examination, the Company

maintained proper accounting records for the year ended December

31, 2013 and the financial statements give a true and fair view of the

financial position of the Company as at December 31, 2013, and of

its financial performance and its cash flows for the year then ended

in accordance with Sri Lanka Accounting Standards.

In our opinion, the consolidated financial statements give a true

and fair view of the financial position of the Company and its

subsidiary dealt with thereby as at December 31, 2013, and of its

financial performance and its cash flows for the year then ended in

accordance with Sri Lanka Accounting Standards.

Report on Other Legal and Regulatory Requirements These financial statements also comply with the requirements of

Section 153(2) to 153 (7) of the Companies Act No. 07 of 2007.

CHARTERED ACCOUNTANTS

Colombo

28th February 2014


Statement of Comprehensive Income Consolidated Company

Year ended 31st December 2013 2012 2013 2012Note Rs. Rs. Rs. Rs.

Revenue 3 25,485,560,907 25,441,493,530 23,717,117,022 23,850,203,088

Cost of Sales (16,064,939,097) (16,120,453,386) (16,064,939,097) (16,120,453,386)

Direct Interest Cost (656,148,789) (547,208,208) – –

Gross Profit 8,764,473,021 8,773,831,936 7,652,177,925 7,729,749,702

Other Income 5 131,154,096 122,014,267 192,964,984 221,965,014

Selling and Administrative Expenses (6,653,632,708) (5,891,856,161) (5,961,869,214) (5,345,748,454)

Other Expenses 6 (208,921,728) (228,346,324) (195,078,574) (215,855,381)

Finance Cost 7.1 (1,359,130,146) (1,054,025,271) (1,359,130,146) (1,054,025,271)

Finance Income 7.2 98,973,527 99,059,887 141,018,936 189,386,968

Net Finance Cost (1,260,156,619) (954,965,384) (1,218,111,210) (864,638,303)

Share of Profits of Equity Accounted Investees (Net of Income Tax) 8 1,282,586 5,777,555 – –

Value Added Tax on Financial Services (45,758,296) (49,295,425) (22,050,000) (29,052,000)

Profit before Tax 9 728,440,352 1,777,160,464 448,033,911 1,496,420,578

Income Tax Expense 10 (206,374,628) (561,450,559) (146,139,537) (466,669,127)

Profit for the Year 522,065,724 1,215,709,905 301,894,374 1,029,751,452

Other Comprehensive Income

Revaluation of Property, Plant & Equipment – 148,602,050 – 148,602,050

Actuarial Loss on Retirement Benefit Obligation (4,175,478) (30,935,134) (3,728,007) (28,907,958)

Tax on Other Comprehensive Income 10.4 1,169,134 (12,993,586) 1,043,842 (13,561,196)

Other Comprehensive Income for the Year, Net of Tax (3,006,344) 104,673,330 (2,684,165) 106,132,896

Total Comprehensive Income for the Year 519,059,380 1,320,383,236 299,210,209 1,135,884,348

Profit Attributable to:

Owners of the Company 462,092,642 1,159,727,641 301,894,374 1,029,751,452

Non-Controlling Interests 59,973,082 55,982,264 – –


Total Comprehensive Income Attributable to:

Owners of the Company 459,149,439 1,264,687,020 299,210,209 1,135,884,348

Non-Controlling Interests 59,909,941 55,696,216 – –

Total Comprehensive Income for the Year 519,059,380 1,320,383,236 299,210,209 1,135,884,348

Earnings per Share - Basic - (Rs.)* 11.2 3.69 9.26 2.41 8.22

Dividends per Share (Including Proposed Final Dividend) - (Rs.) 32 2.50 6.00

The Notes on pages 159 through 203 form an integral part of these Financial Statements.

Colombo

28th February 2014


Statement of Financial Position Consolidated Company

As at 31st December 2013 2012 2013 2012Note Rs. Rs. Rs. Rs.

ASSETSNon-Current AssetsProperty, Plant & Equipment 12 2,505,354,567 2,151,207,668 2,434,877,797 2,106,382,609

Intangible Assets 13 198,081,666 189,255,900 166,101,003 166,953,577

Investment in Subsidiaries 14 – – 982,241,596 982,241,596

Investments in Equity Accounted Investees 15 53,225,789 52,663,202 48,000,000 48,000,000

Other Financial Assets 16.1 17,061,300 17,061,300 166,303,000 17,020,000

Trade and Other Receivables 19.1 5,669,229,121 5,044,790,241 1,514,131,546 1,295,482,986

Deferred Tax Assets 27.1 119,021,885 150,284,035 135,362,481 146,299,773

8,561,974,328 7,605,262,346 5,447,017,423 4,762,380,541

Current AssetsInventories 17 5,155,665,980 4,226,074,244 5,155,665,980 4,226,074,244

Loans due from Related Parties 18 69,634,631 93,634,631 90,880,658 1,492,053,836

Income Tax Receivable 50,963,181 – 50,963,181 –

Trade and Other Receivables 19.2 9,518,036,640 8,355,653,594 6,399,591,642 5,329,017,385

Amounts due from Related Parties 20 7,619,556 134,892,653 7,619,556 139,075,254

Deposits with Bank 113,959,510 50,983,014 – –

Other Financial Assets 16.2 427,885,421 318,719,907 – –

Cash and Cash Equivalents 21 692,457,844 615,316,097 519,015,324 424,276,574

16,036,222,763 13,795,274,140 12,223,736,341 11,610,497,293

Total Assets 24,598,197,091 21,400,536,486 17,670,753,764 16,372,877,834

EquityStated Capital 22 626,048,050 626,048,050 626,048,050 626,048,050

Capital Reserves 23 762,033,802 773,312,374 762,033,802 773,312,374

Statutory Reserve 24 128,446,545 78,425,118 – –

Revenue Reserves 25 3,447,544,210 3,778,395,286 2,928,810,118 3,369,578,997

Total Equity Attributable to Equity Holders of the Company 4,964,072,607 5,256,180,828 4,316,891,970 4,768,939,421

Non-Controlling Interest 395,902,426 357,053,967 – –

Total Equity 5,359,975,033 5,613,234,795 4,316,891,970 4,768,939,421

Non-Current LiabilitiesInterest Bearing Loans & Borrowings 26 4,337,115,772 1,633,822,786 3,150,880,854 1,402,554,786

Retirement Benefit Obligations 28 320,032,869 270,539,471 305,782,867 259,358,640

Deferred Tax Liabilities 27.2 109,540,205 113,926,324 109,540,205 113,926,324

Security Deposits 651,765,090 576,648,411 651,765,090 576,648,411

Other Financial Liabilities 34 756,232,182 342,534,504 – –

6,174,686,118 2,937,471,496 4,217,969,016 2,352,488,161

Current LiabilitiesTrade and Other Payables 29 3,386,637,680 2,521,468,377 2,964,492,433 2,261,543,468

Deferred Revenue 30 20,878,350 22,329,750 20,878,350 22,329,750

Income Tax Payable 15,638,502 67,213,232 – 38,976,352

Dividends Payable 31 14,956,444 10,822,388 14,956,444 10,822,388

Amounts due to Related Parties - Trade 33.1 333,565,081 165,767,271 333,565,081 165,767,271

Amounts due to Related Parties - Non-Trade 33.2 76,745,825 72,674,730 76,745,825 72,674,730

Other Financial Liabilities 34 3,011,997,537 2,649,974,151 – –

Interest Bearing Loans & Borrowings 26 6,203,116,521 7,339,580,296 5,725,254,645 6,679,336,293

13,063,535,940 12,849,830,195 9,135,892,778 9,251,450,252

Total Equity and Liabilities 24,598,197,091 21,400,536,486 17,670,753,764 16,372,877,834


I certify that the Financial Statements of the Company comply with the requirements of the Companies Act No. 07 of 2007.

Priyath SalgadoFinance Director

The Board of Directors is responsible for the preparation of these Financial Statements. Signed for and on behalf of the Board by,

Hemaka Amarasuriya H.A. PierisDirector Director/Group Chief Executive Officer

Colombo 28th February 2014


Statement of Changes in EquityConsolidatedYear ended 31st December Attributable to Equity Holders of the Company

Note Stated Reserve Investment Revaluation General Retained Total Non- TotalCapital Fund Fund Reserves Reserves Earnings Controlling

Interest

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Balance as at 1st January 2012 626,048,050 16,350,118 28,057,705 655,453,887 2,200,000,000 1,221,738,520 4,747,648,280 255,995,211 5,003,643,491

Realisation on Revaluation Surplus 23.1 – – – (12,622,416) – 12,622,416 – – –

Deferred Tax effect on realisation of Revaluation Surplus 27.2 – – – 3,534,277 – – 3,534,277 – 3,534,277

Transferred to/(from) during the year

24.1, 24.2/ 25.1 – 11,278,000 22,739,295 – 300,000,000 (334,017,295) – – –

Transactions with owners of the Company, recognised directly in equity

Distributions to owners of the Company

Final Dividend - 2011 32 – – – – – (751,257,660) (751,257,660) – (751,257,660)

Dividend paid by subsidiary Companies to non-controlling interest - 2011 – – – – – – – (21,333,333) (21,333,333)

Total Distributions to owners of the Company – – – – – (751,257,660) (751,257,660) (21,333,333) (772,590,993)

Changes in ownership interests in Subsidiary

Right issue expenses – – – – – (3,620,216) (3,620,216) (1,206,739) (4,826,954)

Acquisition of non-controlling interests without change in control – – – – – (4,810,872) (4,810,872) – (4,810,872)

Issue shares of subsidiary to non controlling interest – – – – – – – 67,902,612 67,902,612

Total transactions with owners of the Company – – – – – (759,688,748) (759,688,748) 45,362,540 (714,326,204)

Total comprehensive income for the year

Profit for the year – – – – – 1,159,727,641 1,159,727,641 55,982,264 1,215,709,905

Other comprehensive income

Surplus on Revaluation for the year 23.1 – – – 148,602,050 – – 148,602,050 – 148,602,050

Deferred tax effect on Revaluation 27.2 – – – (21,655,424) – (21,655,424) – (21,655,424)

Actuarial loss on retirement benefit obligation 28 (30,537,845) (30,537,845) (397,289) (30,935,134)

Tax on other comprehensive income 10.4 – – – – – 8,550,597 8,550,597 111,241 8,661,838

Total other comprehensive income for the year – – – 126,946,626 – (21,987,248) 104,959,378 (286,048) 104,673,330

Total comprehensive income for the Year – – – 126,946,626 – 1,137,740,393 1,264,687,020 55,696,216 1,320,383,236

Balance at 31st December 2012 626,048,050 27,628,118 50,797,000 773,312,374 2,500,000,000 1,278,395,286 5,256,180,828 357,053,967 5,613,234,795

Realisation on Revaluation Surplus 23.1 – – – (11,278,572) – 11,278,572 – – –

Transferred to/(from) during the year – 12,826,700 37,194,727 – – (50,021,427) – – –



Final Dividend - 2012 32 – – – – – (751,257,660) (751,257,660) – (751,257,660)

Dividend paid by subsidiary Companies to non-controlling interest - 2012 – – – – – – – (21,061,482) (21,061,482)

Total Distributions to owners of the Company – – – – – (751,257,660) (751,257,660) (21,061,482) (772,319,142)


Profit for the year – – – – – 462,092,642 462,092,642 59,973,082 522,065,724

Other comprehensive income

Actuarial Loss on retirement benefit obligation 28 – – – – – (4,087,782) (4,087,782) (87,696) (4,175,478)

Tax on other comprehensive income 10.4 – – – – – 1,144,579 1,144,579 24,555 1,169,134

Total other comprehensive income for the year – – – – – (2,943,203) (2,943,203) (63,141) (3,006,344)

Total comprehensive income for the year – – – – – 459,149,439 459,149,439 59,909,941 519,059,380

Balance as at 31st December 2013 626,048,050 40,454,818 87,991,727 762,033,802 2,500,000,000 947,544,210 4,964,072,607 395,902,426 5,359,975,033

Investment Fund Account consists of 8% of the profits calculated for the payment of Value Added Tax on Financial Services and 5% of the Profit before Tax calculated for payment of Income Tax purposes during the year.




Company

Year ended 31st December Note Stated Revaluation General Retained TotalCapital Reserves Reserves Earnings

Rs. Rs. Rs. Rs. Rs.

Balance at 1st January 2012 626,048,050 655,453,887 2,200,000,000 899,276,519 4,380,778,456

Realisation on Revaluation Surplus 23.1 – (12,622,416) – 12,622,416 –

Deferred Tax effect on realisation of Revaluation Surplus 27.2 – 3,534,277 – – 3,534,277

Transferred to/(from) during the year 24.1,

24.2/25.1

– – 300,000,000 (300,000,000) –



Final Dividend - 2011 32 – – – (751,257,660) (751,257,660)

Total Distributions to owners of the Company – – – (751,257,660) (751,257,660)

Total comprehensive income for the year –

Profit for the year – – – 1,029,751,452 1,029,751,452

Other comprehensive income – – – – –

Surplus on Revaluation for the year 23.1 – 148,602,050 – – 148,602,050

Deferred tax effect on Revaluation 27.2 – (21,655,424) – – (21,655,424)

Actuarial loss on retirement benefit obligation 28 – – – (28,907,958) (28,907,958)

Tax on other comprehensive income 10.4 – – – 8,094,228 8,094,228

Total other comprehensive income – 126,946,626 – (20,813,730) 106,132,896

Total comprehensive income for the year – 126,946,626 – 1,008,937,722 1,135,884,348

Balances at 31 December 2012 626,048,050 773,312,374 2,500,000,000 869,578,997 4,768,939,421

Realisation on Revaluation Surplus 23.1 – (11,278,572) – 11,278,572 –

Transferred to/(from) during the year – – – – –



Final Dividend - 2012 32 – – – (751,257,660) (751,257,660)

Total Distributions to owners of the Company – – – (751,257,660) (751,257,660)


Profit for the year – – – 301,894,374 301,894,374

Other comprehensive income –

Actuarial loss on retirement benefit obligation 28 – – – (3,728,007) (3,728,007)

Tax on other comprehensive income 10.4 – – – 1,043,842 1,043,842

Total other comprehensive income – – – (2,684,165) (2,684,165)

Total comprehensive income for the year – – – 299,210,209 299,210,209

Balance as 31st December 2013 626,048,050 762,033,802 2,500,000,000 428,810,118 4,316,891,970




Statement of Cash Flows Consolidated Company

Year ended 31st December 2013 2012 2013 2012Note Rs. Rs. Rs. Rs.

Cash Flows from Operating Activities

Profit before Income Tax Expense 728,440,353 1,777,160,464 448,033,911 1,496,420,578

Adjustments for:

Depreciation on Property, Plant & Equipment 12 219,538,591 233,157,545 209,463,516 222,881,140

Share of Profit from Equity Accounted Investees 8 (1,282,586) (5,777,555) – –

Amortisation of Intangible Assets 13 11,797,982 18,459,349 8,029,903 16,244,811

Gain on Disposal of Property, Plant & Equipment (175,520) (1,894,295) (175,520) (964,020)

Interest Expense 1,352,309,381 1,054,025,271 1,352,309,381 1,054,025,271

Interest Income (98,890,340) (99,059,887) (141,018,936) (189,386,968)

Impairment of Inventories 209,921 27,049,717 209,921 27,049,717

Bad Debts Written-off (85,163,170) (38,591,333) (21,248,034) (17,803,787)

Impairment on Trade and Other Receivables 284,988,961 110,907,246 114,677,161 77,097,730

Dividend Income (776,922) (2,008,950) (79,171,589) (59,590,941)

Provision for Retiring Gratuity 28 51,745,950 44,414,638 48,494,250 41,584,752

Operating Profit before Working Capital Changes 2,462,742,601 3,117,842,210 1,939,603,964 2,667,558,283

(Increase)/Decrease in Inventories (929,801,656) (850,207,613) (929,801,656) (867,079,093)

(Increase)/Decrease in Debtors falling due after One Year (624,438,879) (841,087,133) (218,648,560) (72,722,923)

(Increase)/Decrease in Debtors falling due within One Year (1,363,660,239) (1,514,715,667) (1,165,454,785) (1,093,379,523)

(Increase)/Decrease in dues from Related Parties 127,273,097 (122,052,986) 131,455,699 435,751,227

(Increase)/Decrease in dues to Related Parties 171,868,904 12,415,253 171,868,904 12,415,253

Increase in Security Deposits 75,116,679 89,199,890 75,116,679 89,199,890

Increase in Customer Deposit Liabilities 775,721,064 201,520,436 – –

Increase in Trade and Other Payables 882,531,643 (65,093,538) 720,311,302 33,001,496

Cash Generated from Operations 1,577,353,214 27,820,852 724,451,547 1,204,744,608

Finance Costs Paid (1,369,671,717) (906,900,236) (1,369,671,717) (951,591,437)

Retiring Gratuity Paid 28 (6,428,030) (9,597,491) (5,798,030) (8,967,491)

Income Tax Paid (280,795,375) (684,052,611) (228,484,055) (610,943,687)

Net Cash from/(Used in) Operating Activities (79,541,912) (1,572,729,486) (879,502,257) (366,758,007)

Cash Flows from Investing Activities

Acquisition of Property, Plant & Equipment and Intangible Assets 12/13 (601,187,217) (602,757,249) (552,014,012) (564,695,250)

Proceeds from Disposal of Property, Plant & Equipment 7,053,500 19,963,106 7,053,500 16,416,611

Investment in Shares/Debentures in Subsidiary Company – – (149,283,000) (582,241,596)

(Acquisition)/Disposal of Marketable Securities (109,165,514) (28,407,290) – –

Investment in Bank Deposits (62,976,497) (50,983,014) – –

Net Cash Flows from Loans Given to Related Companies 24,000,000 80,000,000 1,401,173,178 (952,547,971)

Interest Income Received 98,890,340 99,059,887 141,018,936 189,386,968

Dividend Income Received 1,424,922 2,008,950 79,171,589 59,590,941

Net Cash Flows used in Investing Activities (641,960,466) (481,115,610) 927,120,191 (1,834,090,297)

Cash Flows from Financing Activities

Proceeds from Interest-Bearing Loans and Borrowings 10,165,538,555 8,510,752,906 8,590,579,637 7,938,652,906

Repayment of Interest-Bearing Loans and Borrowings (8,776,296,809) (5,493,216,426) (7,918,073,844) (5,016,872,281)

Proceeds from Rights Issue Purchased by Minority Holders – 58,264,786 – –

Net Payment to Minority Shareholders (21,061,482) (21,333,333) – –

Dividends Paid (747,123,604) (746,259,826) (747,123,604) (746,259,826)

Net Cash Flows from Financing Activities 621,056,660 2,308,208,107 (74,617,811) 2,175,520,800

Net Increase/(Decrease) in Cash and Cash Equivalents (100,445,718) 254,363,011 (26,999,877) (25,327,504)

Cash and Cash Equivalents at the beginning of the Year 21 (48,198,618) (302,561,629) (207,303,628) (181,976,124)

Cash and Cash Equivalents at the end of the Year 21 (148,644,336) (48,198,618) (234,303,505) (207,303,628)



1. Corporate Information1.1 Reporting Entity1.1.1 General

Singer (Sri Lanka) PLC is a limited liability company incorporated

and domiciled in Sri Lanka. The Registered Office of the Company is

located at No. 80, Nawam Mawatha, Colombo 2, and the principal

place of business is situated at the above address.

In the Report of the Directors and in the Financial Statements, ‘the

Company’ refers to Singer (Sri Lanka) PLC as the Holding Company

and ‘the Group’ refers to the Consolidated Financial Statements of

Singer (Sri Lanka) PLC and its Subsidiary, Singer Finance (Lanka) PLC.

1.1.2 Companies in the GroupSubsidiary

A fully-owned subsidiary, Singer Finance (Lanka) PLC, was

incorporated on 19th April 2004 under the Companies Act No. 17 of

1982 and its commercial operations commenced on 8th July 2004.

Singer Finance (Lanka) PLC issued 25% of its equity holding through

an Initial Public Offering and allotted shares on 22nd December

2010. Shares of Singer Finance (Lanka) PLC was first traded on

17th January 2011 at the Colombo Stock Exchange. Pursuant to

the Special Resolution passed by the shareholders on 21st December

2010, name of the subsidiary company was changed from Singer

Finance (Lanka) Ltd. to Singer Finance (Lanka) PLC. The name change

was gazetted on 18th February 2011.

Associates (Equity Accounted Investees)

Associate companies of the Group, whose results have been included

in the Consolidated Financial Statements are:

Telshan Network (Pvt) Ltd.

Reality Lanka Ltd.

All above companies are incorporated in Sri Lanka.

1.1.3 Principal Activities and Nature of OperationsCompany

During the year, the principal activities of the Company were marketing

domestic and industrial sewing machines, consumer electronics, home

appliances, furniture, agricultural equipment and personal computers

and manufacturing furniture and agricultural equipment.

Subsidiary

Principal activities of Singer Finance (Lanka) PLC are financing of

the sale or purchase of any goods, articles, vehicles or other items

either by letting on hire, hire purchase, leasing and other methods of

financing. In addition, Singer Finance (Lanka) PLC accepts deposits.

1.1.4 Parent Enterprise and Ultimate Parent Enterprise

The Company's Parent undertaking is Singer (Sri Lanka) BV.

The Company's Ultimate Parent undertaking and controlling party is

Retail Holdings NV, which is incorporated in the Netherlands, Antilles.

Note 1 Corporate Information 159

Note 2 Significant Accounting Policies 160

Note 3 Revenue 168

Note 4 Segment Information 168

Note 5 Other Income 169

Note 6 Other Expenses 169

Note 7 Net Finance Cost 170

Note 8 Share of Profit of Equity Accounted Investees - (Net of Income Tax) 170

Note 9 Profit Before Tax 170

Note 10 Income Tax Expense 171

Note 11 Earnings Per Share 172

Note 12 Property, Plant & Equipment 172

Note 13 Intangible Assets 176

Note 14 Investment in Subsidiary - Company 178

Note 15 Investments in Equity Accounted Investees 179

Note 16 Other Financial Assets 180

Note 17 Inventories 180

Note 18 Loans Due from Related Parties 181

Note 19 Trade and Other Receivables 181

Note 20 Amounts Due from Related Parties 183

Note 21 Cash and Cash Equivalents 183

Note 22 Stated Capital 183

Note 23 Capital Reserves 184

Note 24 Statutory Reserves 184

Note 25 Revenue Reserves 185

Note 26 Interest-Bearing Loans and Borrowings 185

Note 27 Deferred Tax Assets/(Liabilities) 188

Note 28 Retirement Benefit Obligations 190

Note 29 Trade and Other Payables 191

Note 30 Deferred Revenue 191

Note 31 Dividend Payable 191

Note 32 Dividends 191

Note 33 Amounts due to Related Parties 192

Note 34 Other Financial Liabilities 192

Note 35 Financial Instruments 192

Note 36 Commitments and Contingencies - Group/Company 199

Note 37 Events after the Reporting Period 200

Note 38 Related Party Transactions 200

Notes to the Financial Statements


1.1.5 Number of Employees

The number of employees of the Group at the end of the year was

1,637 (2012 - 1,475), Company - 1,402 (2012 - 1,284).

1.2 Basis of Preparation1.2.1 Statement of Compliance

The Financial Statements have been prepared in accordance with

Sri Lanka Accounting Standards (hereinafter referred to as SLFRS)

issued by The Institute of Chartered Accountants of Sri Lanka (ICASL)

and the requirements of the Companies Act No. 07 of 2007 and

Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995.

1.2.2 Approval of Financial Statements

The Financial Statements for the year ended 31st December 2013

were authorised for issue in accordance with a resolution of the

Board of Directors on 28th February 2014.

1.2.3 Basis of Measurement

The Financial Statements have been prepared on the historical

cost basis, except for certain Investments and items of Property,

Plant & Equipment, which are measured at fair value and Defined

Benefit Plans which are measured at present value of the Retirement

Benefit Obligations as explained in the respective Notes to the


1.2.4 Functional and Presentation Currency

The Financial Statements are presented in Sri Lankan Rupees

which is the functional currency of the Company and its Subsidiary.

1.2.5 Use of Estimates and Judgements

The preparation of the Consolidated Financial Statements in

conformity with SLFRS requires management to make judgements,

estimates and assumptions that affect the application of accounting

policies and the reported amounts of assets, liabilities, income and

expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing

basis. Revisions to accounting estimates are recognised in the period

in which the estimate is revised and any future periods affected.

Information about significant areas of estimation uncertainty and

critical judgements in applying accounting policies that have the

most significant effect on the amounts recognised in the Financial

Statements is included in the following Notes:

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1.2.6 Going Concern

The Directors have made an assessment of the Group’s ability to

continue as a going concern in the foreseeable future, and they do

not intend either to liquidate or cease trading.

2. Significant Accounting PoliciesThe accounting policies set out below have been consistently applied

to all periods presented in these Consolidated Financial Statements.

2.1 Basis of Consolidation2.1.1 Business Combinations

Business combinations are accounted using acquisition method.

The Group measures goodwill at the acquisition date, as the fair

value of the consideration transferred including the recognised

amount of any non-controlling interests in the acquire, less the net

recognised amount (generally fair value) of the identifiable assets

acquired and liabilities assumed measured as of the acquisition date.

When the excess is negative, a bargain purchase gain is recognised

immediately in profit or loss.

Transaction costs, other than those associated with the issue of debt

or equity securities, that the Group incurs in connection with

a business combination are expensed as incurred.

2.1.2 Subsidiary

Subsidiary is an entity controlled by the Group. Control exists when

the Group has the power to govern the financial and operating

policies of an entity so as to obtain benefits from its activities.

The Financial Statements of the subsidiary are included in the

Consolidated Financial Statements from the date that control

commences until the date that control ceases.

2.1.3 Acquisitions of Non-Controlling Interests

Acquisitions of non-controlling interests are accounted for as

transactions with equity holders. Therefore no goodwill is recognised

as a result of such transactions.

2.1.4 Loss of Control

Upon loss of control, the Group derecognises the assets and

liabilities of the subsidiary, anyone controlling interests and the

other components of equity related to the subsidiary. Any surplus

or deficit arising on the loss of control is recognised in the Income

Statement. If the Group retains any interest in the previous

subsidiary, then such interest is measured at fair value as at the date

that control is lost. It is then accounted for an equity accounted

investee or as an available-for-sale financial asset depending on the

level of influence retained.

2.1.5 Associates (Equity Accounted Investees)

Associates are those entities in which the Group has significant

influence, but not control, over the financial and operating policies.

Significant influence is presumed to exist when the Group holds

between 20% to 50% of the voting power of another entity.

Investments in associates are accounted for using the equity method

(equity accounted investees) and are recognised initially at cost.



The Consolidated Financial Statements includes the Group’s share

of income and expenses and equity movements of equity accounted

investees, from the date that significant influence commences until

the date that significant influence ceases. When the Group's share

of losses exceeds its interest in an equity accounted investee, the

carrying amount of that interest is reduced to nil and the recognition

of further losses is discontinued, except to the extent that the Group

has an obligation or has made payments on behalf of the investee.

2.1.6 Transactions Eliminated on Consolidation

Intra-group balances and transactions, and any unrealised income

and expenses arising from intra-group transactions are eliminated

in preparing the Consolidated Financial Statements. Unrealised

gains arising from transactions with equity accounted investees

are eliminated against the investment to the extent of the Group’s

interest in the investee. Unrealised losses are eliminated in the same

way as unrealised gains, but only to the extent that there is no

evidence of impairment.

2.2 Foreign Currency Translation

Transactions in foreign currencies are initially recorded at the

functional currency rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies at

the reporting date are retranslated at the functional currency rate of

exchange ruling at that date. Non-monetary items that are measured

in terms of historical cost in a foreign currency are retranslated using

the exchange rates as at the dates of the initial transactions. Foreign

exchange differences arising on translation are recognised in profit

and loss.

2.3 Property, Plant & Equipment2.3.1 Recognition and Measurement

Items of Property, Plant & Equipment are measured at cost

or valuation, less accumulated depreciation and accumulated

impairment losses.

(a) Cost and Valuation

Cost includes expenditure directly attributable to the acquisition of

the asset. Purchased software that is integral to the functionality

of the related equipment is capitalised as part of that equipment.

When parts of an item of Property, Plant & Equipment have different

useful lives, they are accounted for as separate items of Property,

Plant & Equipment.

All items of Property, Plant & Equipment are initially recognised

at cost. A revaluation is carried out when there is a substantial

difference between the fair value and the carrying amount of the

property, and is undertaken by professionally qualified valuers.

When items of Property, Plant & Equipment are subsequently

revalued, the entire class of such assets are revalued.

Increases in the carrying amount on revaluation are credited to

the revaluation reserve in shareholders' equity, unless it reverses a

previous revaluation decrease relating to the same asset, which

was previously recognised as an expense. In these circumstances

the increase is recognised as income to the extent of the previous

write down.

Decreases in the carrying amount on revaluation that offset previous

increases of the same individual asset is charged against revaluation

reserve directly in equity. All other decreases are recognised in profit

and loss.

The relevant potion of the revaluation reserve is transferred to

retained earnings as the asset is depreciated with the balance being

transferred on ultimate disposals.

(b) Subsequent Costs

The cost of replacing part of an item of Property, Plant & Equipment

is recognised in the carrying amount of the item if it is probable that

the future economic benefits embodied within that part will flow

to the Group and its cost can be measured reliably. The carrying

amount of the replaced part is derecognised. The costs of the

day-to-day servicing of Property, Plant & Equipment are recognised

in profit and loss as incurred.

(c) Depreciation

Depreciation is calculated over the depreciable amount, or other

amount substituted for cost, less its residual value.

Depreciation is recognised in profit and loss on a straight-line basis

over the estimated useful lives of each part of an item of Property,

Plant & Equipment, since this most closely reflected the expected

pattern of consumption of the future economic benefits embodied in

the asset. Freehold land is not depreciated.

The estimated useful lives are as follows:

Freehold Buildings Over 37.5 to 50 years

Motor VehiclesOver 07 years (2012 - Over 5 years)

Furniture, Fittings and Equipment Over 10 years

Plant and Machinery Over 10 years

EDP Equipment Over 05 years

Improvement on Leasehold Premises Over 04 to 10 years

Shop Furniture and EquipmentOver 07 years (2012 - Over 5 years)

Computer Equipment (IFS Related) 10 years

EDP Servers 07 years

Depreciation of an asset commences when the asset is available for

use and ceases at the earlier of the date the asset is classified as

held-for-sale and the date that the asset is derecognised.

Depreciation methods, useful lives and residual values are reviewed

at each financial year end and adjusted if appropriate.



(d) Derecognition

An item of Property, Plant & Equipment is derecognised upon

disposal of or when no future economic benefits are expected from

its use or disposal. Gains and losses arising on derecognition of

the asset are determined by comparing the proceeds from disposal

with the carrying amount of Property, Plant & Equipment and are

recognised net within ‘Other Income’ in profit and loss.

2.3.2 Intangible Assets

An intangible asset is recognised if it is probable that future

economic benefits will flow to the entity and the cost of the asset

can be measured reliably in accordance with LKAS 38 on 'Intangible

Assets'. Intangible assets with finite useful lives are measured at cost,

less accumulated amortisation and accumulated impairment losses.

The useful lives of Intangible Assets are assessed to be either finite

or indefinite.

(a) Subsequent Expenditure

Subsequent expenditure is capitalised only when it increases the

future economic benefits embodied in the specific asset to which

it relates. All other expenditure, including expenditure on internally

generated goodwill and brands are recognised in profit or loss as

incurred.

Intangible assets with finite lives are amortised over the useful

economic life and assessed for impairment whenever there is

an indication that the intangible asset may be impaired. The

amortisation period and the amortisation method for an intangible

asset with a finite useful life are reviewed at least at each financial

year-end. Changes in the expected useful life or the expected

pattern of consumption of future economic benefits embodied

in the asset is accounted for by changing the amortisation period

or method, as appropriate, and treated as changes in accounting

estimates. Amortisation expense on Intangible Assets with finite

lives is recognised in profit and loss on a straight-line basis over the

estimated useful lives, from the date they are available for use.

The estimated useful lives of intangible assets with finite lives are as

follows:

The Class of Intangible Assets Useful Life

Computer Software 10 years

Other Intangible Assets Externally Acquired 5 years

Intangible assets with indefinite useful lives are tested for impairment

annually either individually or at the cash-generating unit level. Such

intangible assets are not amortised.

Gains or losses arising from derecognition of an intangible asset are

measured as the difference between the net disposal proceeds and

the carrying amount of the asset and are recognised in profit and

loss when the asset is derecognised.

Intangible assets with indefinite useful lives represent Trade Marks

purchased through the effect of a business combination and were

recorded at cost.

2.4 Financial Instruments2.4.1 Non-derivative Financial Assets

The Group recognises financial assets or financial liabilities in its

Statement of Financial Position when the Group becomes a party to

the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at

fair value. Transaction costs that are directly attributable to the

acquisition or issue of a financial asset or a liability (other than

financial assets and financial liabilities at fair value through profit or

loss) are added or deducted from the fair value of the financial asset

or liability, as appropriate, on initial recognition. Transaction costs

that are directly attributable to the acquisition of financial assets and

financial liabilities at fair value through profit or loss are recognised

immediately in the Income Statement.

Financial assets and liabilities are offset and the net amount is

presented when, and only when the Group has a legal right to offset

the amount and intends either to settle on a net basis or to realise

the asset and settle the liability simultaneously.

The Group has following non-derivative financial assets:

held-to-maturity financial assets, loans and receivables and

available for sale financial assets.

2.4.1.1 Held-to-Maturity Financial Assets

A non-derivative financial asset with fixed or determinable payments

with fixed maturity where Group intends to hold to maturity is

classified under this category.

Held-to-maturity financial assets are recognised initially at fair

value plus any directly attributable transaction costs. Subsequent

to initial recognition held-to-maturity financial assets are measured

at amortised cost using the effective interest method, less any

impairment losses.

Held-to-maturity financial assets comprise of T Bills and T Bonds.

2.4.1.2 Loans and Receivables

Loans and receivables are financial assets with fixed or determinable

payments that are not quoted in an active market. Such assets

are recognised initially at fair value plus any directly attributable

transaction costs.



Subsequent to initial recognition loans and receivables are measured

at amortised cost using the effective interest method, less any

impairment losses.

Loans and receivables comprise of HP and lease receivable, related

party loans and staff loans and trade and other receivables.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand, demand deposits

and short-term highly liquid investments, readily convertible to

known amounts of cash and subject to insignificant risk of changes

in value.

For the purpose of Cash Flow Statement, cash and cash equivalents

consist of cash in hand and deposits in banks net of outstanding

bank overdrafts.

2.4.1.3 Available-for-Sale Financial Assets

Available-for-sale financial assets are non-derivative financial assets

that are recognised as available-or-sale or not classified in any

previous categories. Available-for-sale financial assets are recognised

initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition, they are measured at fair value

and changes therein, other than impairment losses, are recognised

in the Other Comprehensive income and presented in the available-

for-sale reserve in equity. When an investment is derecognised, the

cumulative gain or loss in other comprehensive income is transferred

to profit or loss.

Available for sales financial assets comprise of equity investments.

2.4.1.4 Derecognition of Financial Assets

The Group derecognises a financial asset when the rights to receive

cash flows from the asset have expired or when it transfers the

financial asset in a transaction in which substantially all the risks

and rewards of ownership of the financial asset are transferred or

in which the Group neither transfers nor substantially all risks and

rewards of ownership and it does not retain control of the

financial asset.

In transactions in which the Group neither retains nor transfers

substantially all the risks and rewards of ownership of a financial

asset and it retains control over the asset, the Group continues to

recognise the asset to the extent of its continuing involvement,

determined by the extent to which it is exposed to changes in the

value of the transferred asset.

On derecognition of a financial asset, the difference between the

carrying amount of the asset (or the carrying amount allocated

to the portion of the asset transferred), and the sum of (i) the

consideration received (including any new asset obtained less any

new liability assumed) and (ii) any cumulative gain or loss that had

been recognised in Other Comprehensive Income is recognised in

profit or loss.

The Group derecognises a financial liability when its contractual

obligations are discharged or cancelled or expire.

2.4.2 Non-derivative Financial Liabilities

The Group initially recognises debt securities issued and subordinated

liabilities on the date that they are originated. All other liabilities are

recognised initially on the trade date at which the Company becomes

a party to the contractual provisions of the instrument.

The Group classifies non-derivative financial liabilities into other

financial liabilities category. Such financial liabilities are recognised

initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition, these financial liabilities are

measured at amortised cost using the effective interest method.

Other financial liabilities comprise interest bearing borrowings, bank

overdrafts and trade and other payables.

Bank overdrafts that are repayable on demand and form

an integral part of the Company’s cash management are included

as a component of cash and cash equivalents for the Statement of

Cash Flows.

2.4.2.1 Derecognition of Financial Liability

The Group derecognises a financial liability when its contractual

obligations are discharged, cancelled or expired. Financial assets and

liabilities are offset and the net amount presented in the Statement

of Financial Position when and only when, the Company has a legal

right to offset the amounts and intends either to settle on a net basis

or to realise the asset or settle the liability simultaneously.

2.4.3 Stated Capital

Ordinary shares are classified as equity. Incremental costs directly

attributable to the issue of ordinary shares are recognised as a

deduction from equity, net of any tax effects.

2.4.4 Amortised Cost Measurement

The amortised cost of a financial asset or liability is the amount at

which the financial asset or liability is measured at initial recognition,

minus principal repayments and any impairment and plus/minus the

cumulative amortisation using the effective interest method of any

difference between the initial amount recognised and the maturity

amount, minus any reduction for impairment.

2.4.5 Fair Value Measurement

Fair value is the amount for which an asset could be exchanged, or a

liability settled, between knowledgeable, willing parties in an arm’s

length transaction on the measurement date.

The fair value of financial instruments that are traded in an active

market at each reporting date is determined by reference to quoted

market prices or dealer price quotations, without any deduction for

transaction costs.



For financial instruments not traded in an active market, the

fair value is determined using appropriate valuation techniques.

Such techniques may include using recent arm’s length market

transactions; reference to the current fair value of another instrument

that is substantially the same; a discounted cash flow analysis or

other valuation models.

2.4.6 Impairment2.4.6.1 Impairment of Non-derivative Financial Assets

Financial assets other than those measured at fair value are assessed

for indicators of impairment at the end of each reporting period.

Financial assets are considered to be impaired when there is objective

evidence that as a result of one or more events that occurred after

the initial recognition of the financial assets, the estimated future

cash from the asset have been affected.

The Group assesses at each reporting date whether there is any

objective evidence that a financial asset or a group of financial assets

are impaired. A financial asset or a group of financial assets are

deemed to be impaired if, and only if, there is objective evidence

of impairment as a result of one or more events that have occurred

after the initial recognition of the asset and that loss event have an

impact on the estimated future cash flows of the financial asset or

the group of financial assets that can be reliably estimated.

(a) Impairment Losses on Financial Assets carried at Amortised Cost

Impairment losses on assets carried at amortised cost are measured

as the difference between the carrying amount of the financial asset

and the present value of estimated future cash flows discounted at

the asset’s original effective interest rate.

Impairment losses are recognised in profit or loss and reflected in an

allowance account against loans and advances. When a subsequent

event causes the amount of impairment loss to decrease, the

decrease in impairment loss is reversed through profit or loss.

(b) Impairment Losses on Available-for-Sale Financial Assets

Impairment losses on available-for-sale investment securities are

recognised by transferring the cumulative loss that has been

recognised in Other Comprehensive Income to profit or loss as a

reclassification adjustment. The cumulative loss that is reclassified

from Other Comprehensive Income to profit or loss is the difference

between the acquisition cost, net of any principal repayment and

amortisation, and the current fair value, less any impairment loss

previously recognised in profit or loss. Changes in impairment

provisions attributable to time value are reflected as a component of

interest income.

If, in a subsequent period, the fair value of an impaired

available-for-sale debt security increases and the increase can be

objectively related to an event occurring after the impairment loss

was recognised in profit or loss, the impairment loss is reversed, with

the amount of the reversal recognised in profit or loss. However, any

subsequent recovery in the fair value of an impaired available-for-sale

equity security is recognised in Other Comprehensive Income.

2.4.6.2 Impairment of Non-Financial Assets

The carrying amount of the Group’s non-financial assets other than

inventories and deferred tax assets are reviewed at each reporting

date to determine whether there is an indication of impairment. If

any such indication exists or when annual impairment testing for an

asset is required, then the asset's recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is

the greater of its value in use and its fair value less costs to sell.

In assessing value in use, the estimated future cash flows are

discounted to their present value using a pre-tax discount rate that

reflects current market assessments of the time value of money and

the risks specific to the asset. In determining fair value, less costs to

sell, an appropriate valuation model is used.

An impairment loss is recognised if the carrying amount of an asset

or cash-generating unit exceeds its estimated recoverable amount.

Impairment losses are recognised in profit and loss. An impairment

loss is reversed if there has been a change in the estimates used to

determine the recoverable amount. An impairment loss is reversed

only to the extent that the asset's carrying amount does not exceed

the carrying amount that would have been determined, net of

depreciation or amortisation, if no impairment loss had been

recognised.

2.5 Inventories

Inventories are measured at the lower of cost and net realisable

value, after making due allowances for obsolete and slow moving

items. Net realisable value is the estimated selling price in the

ordinary course of business, less the estimated cost of completion

and selling expenses.

The cost of each category of inventory is determined on the

following basis:

Raw Materials - At actual cost on first-in first-out basis.

Finished Goods (excluding factory) - Weighted average cost.

Finished Goods and Work-in-Progress at Piliyandala Factory

- At the cost of direct materials, direct labour and an appropriate proportion of fixed production overheads, based on normal operating capacity.

Goods-in-Transit - At actual cost.

Supplies and Parts - Purchase cost, less issues for the period valued at a standard percentage of selling price (requires revision).

Repossessed Goods - Half of its weighted average cost.



Provisions for Inventory

Specific provisions are made giving consideration to the condition of

inventory held by the Company.

2.6 Provisions

A provision is recognised if, as a result of a past event, the Group

has a present legal or constructive obligation that can be measured

reliably, and it is probable that an outflow of economic benefits will

be required to settle the obligation.

2.6.1 Provisions for Warranties

A provision for warranties is recognised when the underlying

products or services are sold. The provision is based on historical

warranty data and a weighing of all possible outcomes against their

associated probabilities.

Capital Commitments and Contingencies

Capital commitments and contingent liabilities of the Group are

disclosed in the respective Notes to the Financial Statements.

2.7 Employee Benefits2.7.1 Defined Benefit Plan

A defined benefit plan is a post-employment benefit plan other than

a defined contribution plan. The liability recognised in the Financial

Statements in respect of defined benefit plans is the present value

of the defined benefit obligation as at the reporting date. The

defined benefit obligation is calculated by a Qualified Actuary as at

the reporting date using the Projected Unit Credit (PUC) method as

recommended by LKAS 19.

The actuarial valuation involves making assumptions about discount

rates, salary increment rates, mortality rate and retirement age.

Due to the long-term nature of his plans such estimates are subject

to significant uncertainty.

The liability is not externally funded.

All actuarial gains and losses arising from defined benefit plans are

recognised immediately in Other Comprehensive Income.

2.7.2 Defined Contribution Plans - Employees' Provident Fund/Mercantile Services Provident Society and Employees' Trust Fund

A defined contribution plan is a post-employment benefit plan under

which an entity pays fixed contributions into a separate entity and

will have no legal or constructive obligation to pay further amounts.

Employees are eligible for contributions to Employees' Provident

Fund/Mercantile Services Provident Society and Employees' Trust Fund

in line with the respective Statutes and Regulations. The Company

contributes 12%, 12% and 3% of gross emoluments of employees to

the Employees' Provident Fund, Mercantile Services Provident Society

and the Employees' Trust Fund, respectively and is recognised as an

expense in profit and loss in the periods during which services are

rendered by employees.

2.7.3 Short-Term Benefits

Short-term employee benefit obligations are measured on an

undiscounted basis and are expensed as the related service is

provided. A liability is recognised for the amount expected to be

paid under short-term cash bonus if the Group has a present legal

or constructive obligation to pay this amount as a result of past

services provided by the employee and the obligation can be

measured reliably.

2.8 Discontinued Operations

A discontinued operation is a component of the Group’s business

that represents a separate major line of business or geographical

area of operations that has been disposed of or is held-for-sale,

or is a subsidiary acquired with a view to resale. Classification as

discontinued operation occurs upon disposal or when the operation

meets the criteria to be classified as held-for-sale, if earlier.

When an operation is classified as a discontinued operation, the

comparative Statement of Comprehensive Income is represented

as if the operation had been discontinued from the start of the

comparative period.

2.9 Statement of Comprehensive Income2.9.1 Revenue Recognition

Revenue is recognised to the extent that it is probable that the

economic benefits will flow to the Company and the revenue and

associated costs incurred or to be incurred can be reliably measured.

Revenue is measured at the fair value of the consideration received or

receivable, net of returns, trade discounts and turnover taxes.

The following specific criteria are used for the purpose of recognition

of revenue:

(a) Sale of Goods (Normal Trading Transactions)

Revenue from the sale of goods is recognised when the significant

risks and rewards of ownership of the goods have passed to buyers,

the recovery of the consideration is probable, the associated costs

and possible return of goods can be estimated reliably, there is

no continuing management involvement with the goods and the

amount of revenue can be measured reliably.

(b) Sale of Goods (Hire Purchase Transactions)

At the time of effecting hire sales, the cash sales value is recognised

as sales.

The unearned income is recognised as income over the term of

hire purchase contract commencing from the month in which first

rental is due, in proportion to the declining receivable balance, so

as to produce a constant periodic rate of return on the hirer’s net

investment outstanding on the hire purchase.

(c) Interest - Other

Interest income is recognised in profit and loss as it accrues and is

calculated by using the effective interest rate method.



(d) Dividends

Dividend income is recognised in profit and loss when the right to

receive dividends is established.

(e) Service Fee Income on Hire Purchase

Service fee income is recognised over the length of hire purchase

agreement using the effective interest rate method. In the event of

early termination of the hire purchase contract or cash conversion

remaining deferred, service income is recognised when such contract

is recognised or converted.

(f) Income on Suraksha and Extended Warranty Scheme

Income is recognised over the period of contract. Unrecognised

income is accounted for as deferred revenue.

(g) Others

Other income is recognised on an accrual basis.

Net gains and losses of a revenue nature on the disposal of

Property, Plant & Equipment and other non-current assets including

investments have been accounted for in profit and loss, having

deducted from proceeds on disposal, the carrying amount of the

assets and related selling expenses.

2.9.2 Revenue Recognition Policy of Singer Finance (Lanka) PLC(a) Hire Purchase

The excess of aggregated contract receivables over the cost of

the hired assets constitutes the total unearned income at the

commencement of a contract. The unearned income is recognised

as income over the term of the hire purchase contract commencing

from the month in which the first rental is due, in proportion to

the declining receivable balance, so as to produce a constant

periodic rate of return on the hirer’s net investment outstanding

on hire purchase.

(b) Lease

The excess of aggregated contract receivables over the cost of

the leased assets constitutes the total unearned income at the

commencement of a contract. The unearned income is recognised

as income over the term of lease contract commencing from the

month in which the first rental is due, in proportion to the declining

receivable balance, so as to produce a constant periodic rate of

return on the lessor’s net investment outstanding on the

lease outstanding.

(c) Interest on Government Securities

Interest is accrued in profit and loss, based on a receivable pattern

reflecting a constant periodic rate of return.

(d) Commissions, Service Charges and Others

Commissions, service charges and others are recognised on an

accrual basis.

2.9.3 Expenditure Recognition

(a) Expenses are recognised in profit and loss on the basis of a

direct association between the cost incurred and the earning of

specific items of income. All expenditure incurred in the running of

the business and in maintaining the Property, Plant & Equipment in

a state of efficiency has been charged to income in arriving at the

profit for the year.

(b) For the purpose of presentation of the Income Statement,

the Directors are of the opinion that ‘function of expenses method’

presents fairly the elements of the Company's performance and

hence such presentation method is adopted.

Net Finance Cost

Finance income comprises interest income on funds invested, and

which is recognised as it accrues in profit or loss, using the effective

interest method.

Finance cost comprises interest payable on borrowings. Borrowing

costs that are not directly attributable to the acquisition, construction

or production of a qualifying asset are recognised in profit or loss

using the effective interest method.

Foreign currency gains and losses are reported on a net basis as

either finance income or finance cost depending on whether foreign

currency movements are in net gain or net loss position.

2.9.4 Taxation

Income tax expense comprises both current and deferred tax. Income

tax expense is recognised in profit and loss, except to the extent

that it relates to items recognised directly in equity, or in Other

Comprehensive Income.

(a) Current Taxes

The current tax is the expected tax payable on the taxable income

for the year, using tax rates enacted or substantially enacted at the

reporting date, and any adjustment to tax payable in respect of

previous years.

(b) Deferred Taxation

Deferred tax is recognised in respect of temporary differences

between the carrying amount of assets and liabilities for financial

reporting purposes and the amounts used for taxation purposes.

Deferred tax liabilities are recognised for all taxable temporary

differences, except for -

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liabilities in a transaction that is not a business combination and

that affects neither the accounting profit nor taxable profit or loss;

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extent that it is probable that the temporary differences will not

reverse in the foreseeable future; and

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of goodwill.



Deferred tax is measured at the tax rates that are expected to be

applied to temporary differences when they reverse, based on

tax laws that have been enacted or substantively enacted by the

reporting date.

A deferred tax asset is recognised for unused tax losses and

deductible temporary differences, to the extent that it is probable

that future taxable profits will be available against which they can

be utilised. The carrying amount of deferred tax assets is reviewed at

each reporting date and is reduced to the extent that it is no longer

probable that the related tax benefit will be realised.

Tax withheld on dividend income from subsidiaries and associates

is recognised as an expense in the Consolidated Income Statement

at the same time as the liability to pay the related dividend

is recognised.

2.9.5 Borrowing Costs

Borrowing costs are recognised as an expense in the period in which

they are incurred.

2.10 Events After the Reporting Period

All material events after the reporting date have been considered and

where necessary adjustments made in these Financial Statements.

2.11 Earnings Per Share

The Group presents basic Earnings Per Share (EPS) for its ordinary

shares. Basic EPS is calculated by dividing the profit or loss

attributable to ordinary shareholders of the Company by the

weighted number of ordinary shares outstanding during the period.

2.12 Segment Reporting

An operating segment is a component of the Company that engages

in business activities from which it may earn revenues and incur

expenses, including revenues and expenses that relate to transactions

with any of the Company’s other components. All operating results

are reviewed regularly by the Chief Executive Officer (CEO) to make

decisions regarding resources to be allocated to the segments and

to assess its performance and for which discrete finance information

is available.

Segment results that are reported to the CEO include items directly

attributable to a segment as well as those that can be allocated on a

reasonable basis.

Segment capital expenditure is the total cost incurred during the

period to acquire Property, Plant & Equipment and Intangible Assets

other than goodwill.

Segment information is presented in the respective Notes to the


2.13 Cash Flow Statement

The Cash Flow statement has been prepared using the indirect

method.

2.14 New Accounting Standards Issued but Not Yet Effective

The Institute of Chartered Accountants of Sri Lanka (ICASL) has

issued the following Standards which become effective for annual

periods beginning after the current financial year. Accordingly,

these Standards have not been applied in preparing these Financial

Statements. The Group expects that these Standards when applied

will have no significant impact on the financial performance,

financial position and disclosures. The Group will be adopting these

Standards when they become effective.

SLFRS 9 - Financial Instruments

SLFRS 10 - Consolidated Financial Statements

SLFRS 11 - Joint Arrangements

SLFRS 12 - Disclosure of Interest in other entities

SLFRS 13 - Fair Value Measurement

2.15 Determination of Fair Values

A number of the Group’s accounting policies and disclosures

require the determination of fair values, for both financial and

non-financial assets and liabilities. Fair values have been determined

for measurement and/or disclosure purposes, based on the

following methods. When applicable, further information about the

assumptions made in determining fair values is disclosed in the notes

specific to that asset or liability.

(i) Land and Buildings

The fair value of land and buildings is based on market values.

The market value of property is the estimated amount for which a

property could be exchanged on the date of valuation between a

willing buyer and a willing seller in an arm’s length transaction after

proper marketing wherein the parties had each acted knowledgeably

and willingly.

(ii) Investments in Equity and Debt Securities

The fair value of financial assets held-to-maturity investments and

available-for-sale financial assets are determined by reference to their

quoted closing bid price at the reporting date.

(iii) Trade and Other Receivables

The fair value of trade and other receivables which is determined for

disclosure purposes in Note 19 is estimated as the present value of

future cash flows, discounted at the market rate of interest at the

reporting date. The fair value is determined for disclosure purposes.

(iv) Non-derivative Financial Liabilities

Fair value, which is determined for disclosure purposes, is calculated,

based on the present value of future principal and interest cash

flows, discounted at the market rate of interest at the reporting

date. For finance leases, the market rate of interest is determined by

reference to similar lease agreements



3. RevenueConsolidated Company

Year ended 31st December 2013 2012 2013 2012Rs. Rs. Rs. Rs.

3.1 Summary

Turnover 25,485,560,907 25,441,493,530 23,717,117,022 23,850,203,088

25,485,560,907 25,441,493,530 23,717,117,022 23,850,203,088

3.2 Revenue

Sale of Goods 21,329,264,368 21,680,140,568 21,329,264,368 21,680,140,568

Rendering of Services 4,156,296,539 3,761,352,962 2,387,852,654 2,170,062,520

25,485,560,907 25,441,493,530 23,717,117,022 23,850,203,088

4. Segment Information4.1 Segment Products and Services

Sewing-Related Products Domestic and Industrial Sewing Machines and General Merchandise.

Consumer Electronics Televisions, Audios, VCD, DVD and Other Electronic Products.

White Goods Refrigerators, Washing Machines, Deep Freezers, Bottle Coolers, Air Conditioners and Fans.

Kitchen-Related Products Table Tops, Gas Ovens, Rice Cookers, Microwave Ovens, Electric Ovens, Grinders and Blenders.

Digital Media Computers, Laptops, CDMA and Cellular Phones and Dialog Satellite Dishes.

Furniture Wood and Layered Furniture, Sofa Sets and Steel Furniture.

Transportation Motor Bikes and Bicycles.

Agro Water Pumps, Paddy Threshers, Tractors

Singer Finance (Lanka) PLC Leasing, Hire Purchase and Loans

4.2 Segmental Analysis of Revenue is as Follows:Consolidated Company

2013 2012 2013 2012Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Sewing-Related Products 2,385,026 2,674,797 2,385,026 2,674,797

Consumer Electronics 5,639,628 6,028,638 5,639,628 6,028,638

White Goods 7,828,143 8,780,142 7,828,143 8,780,142

Kitchen-Related Products 1,613,180 1,693,436 1,613,180 1,693,436

Digital Media 3,132,855 1,738,761 3,132,855 1,738,761

Furniture 1,578,659 1,453,256 1,578,659 1,453,256

Transportation 618,480 616,892 618,480 616,892

Agro 921,146 864,281 921,146 864,281

Singer Finance (Lanka) PLC 1,768,444 1,591,291 – –

25,485,561 25,441,494 23,717,117 23,850,203



4.3 Segmental Analysis of Profit before Tax is as Follows:Consolidated Company

2013 2012 2013 2012Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Sewing-Related Products 41,378 167,106 41,378 167,106

Consumer Electronics 99,714 439,077 99,714 439,077

White Goods 117,498 487,408 117,498 487,408

Kitchen-Related Products 32,928 123,032 32,928 123,032

Digital Media 35,816 73,336 35,816 73,336

Furniture 26,005 82,650 26,005 82,650

Transportation 2,770 12,480 2,770 12,480

Agro 12,754 51,742 12,754 51,742

Singer Finance (Lanka) PLC 357,537 332,543 – –

Segment Result 726,400 1,769,373 368,863 1,436,831

Dividend from Associates/Subsidiary 759 2,009 79,172 59,590

Share of Loss on Equity Accounted Investees 1,283 5,778 – –

728,440 1,777,160 448,034 1,496,421

4.4 There are no separately distinguishable assets and liabilities for the above segments.

5. Other IncomeConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Dividend Income - Quoted 18,000 18,000 77,764,667 57,599,991

- Unquoted 1,406,922 1,990,950 1,406,922 1,990,950

Gain/(Loss) on Disposal of Property, Plant & Equipment 175,520 1,894,295 175,520 964,020

Miscellaneous Income 62,461,788 58,870,846 29,640,685 33,997,467

Service Fee Income - Singer Finance (Lanka) PLC – – 16,237,324 68,172,410

Income from Financial Services 67,739,868 59,240,176 67,739,868 59,240,176

131,802,096 122,014,267 192,964,984 221,965,014

Less: Dividends Received from Equity Accounted Investees (648,000) – – –

131,154,096 122,014,267 192,964,984 221,965,014

6. Other ExpensesDepreciation on Property, Plant & Equipment (Notes 12.7 and 12.15) 197,123,746 209,886,975 187,048,671 199,610,570

Amortisation of Intangible Assets with Finite Useful Lives (Note 13.8) 11,797,982 18,459,349 8,029,903 16,244,811

208,921,728 228,346,324 195,078,574 215,855,381



Consolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

7. Net Finance Cost

7.1 Finance Cost

Interest on Overdrafts and Loans 1,281,284,604 1,000,961,835 1,281,284,604 1,000,961,835

Interest on Security Deposits 71,024,777 53,063,436 71,024,777 53,063,436

Loss on Translation of Foreign Currency 6,820,765 – 6,820,765 –

1,359,130,146 1,054,025,271 1,359,130,146 1,054,025,271

7.2 Finance Income

Interest Income - Related Parties 7,108,616 14,357,149 104,614,488 151,634,388

- Others 67,710,704 54,428,473 15,398,977 15,794,600

Unwinding Interest Income on Interest Free Employee Loans 24,071,019 28,633,442 21,005,471 20,317,157

Gain on Translation of Foreign Currency 83,188 1,640,823 – 1,640,823

98,973,527 99,059,887 141,018,936 189,386,968

Net Finance Cost 1,260,156,619 954,965,384 1,218,111,210 864,638,303

8. Share of Profit/(Loss) of Equity Accounted Investees - (Net of Income Tax)Consolidated

2013 2012Share of Profit/(Loss) Share of Tax Net Profit/(Loss) Net Profit/(Loss)

Rs. Rs. Rs. Rs.

Reality Lanka Ltd. 1,282,586 – 1,282,586 5,777,555

1,282,586 – 1,282,586 5,777,555

9. Profit Before TaxConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Stated after charging all expenses including the Following:

Executive Directors’ Emoluments 52,930,607 84,878,686 43,483,187 73,466,541

Non-Executive Directors’ Fees 9,552,099 7,773,758 6,871,699 7,173,758

Auditors' Remuneration - Statutory Audit 1,950,000 1,935,000 1,600,000 1,450,000

- Audit-Related Services 1,700,000 2,095,000 1,120,000 1,555,000

- Non-Audit Services – – – –

Impairment on Trade and Other Receivables 284,988,961 110,907,246 114,677,161 77,097,730

Bad Debt Written off 85,163,170 38,591,333 21,248,034 17,803,787

Impairment of Inventories 209,921 27,049,717 209,921 27,049,717

Personnel Costs (Note 9.1) 3,032,520,928 2,789,813,221 2,844,198,333 2,633,667,094

Operating Lease Rentals 554,437,308 460,139,985 528,983,351 437,380,477

Donations 418,308 519,000 418,308 519,000

9.1 Personnel Costs

Staff Costs 2,724,952,925 2,518,515,330 2,554,245,380 2,376,045,279

Voluntary Retirement Scheme – 12,094 – 12,094

Defined Benefit Plan Costs - Retiring Gratuity 51,745,950 44,414,638 48,494,250 41,584,752

Defined Contribution Plan Costs - EPF, ETF and MSPS 255,822,053 226,871,159 241,458,702 216,024,969

3,032,520,928 2,789,813,221 2,844,198,333 2,633,667,094



10. Income Tax ExpenseConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Current Income Tax Expense

Current Tax Expense on Ordinary Activities for the Year - Singer (Sri Lanka) PLC (Note 10.1) 175,772,955 556,570,443 144,575,241 482,152,451

(Over)/Under Provision in Respect of Previous Year (4,986,877) 5,314,599 (4,986,877) 5,314,599

Tax on Dividend Income

WHT on Dividend received from Group Companies 8,712,519 6,400,000 – –

179,498,597 568,285,042 139,588,364 487,467,050

Deferred Tax

Expense/(Income) (Note 10.2) 26,876,031 (6,834,483) 6,551,173 (20,797,923)

206,374,628 561,450,559 146,139,537 466,669,127

10.1 Reconciliation Between Current Tax Expense and the Product of Accounting ProfitConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Profit before Tax 728,440,353 1,777,160,464 448,033,911 1,496,420,578

Share of Profit/(Loss) of Associates (1,282,586) (5,777,555) – –

Aggregate Accounting Profit 727,157,767 1,771,382,909 448,033,911 1,496,420,578

Aggregate Disallowable Expenses 1,802,011,133 1,620,956,343 542,299,662 547,455,028

Aggregate Tax Deductible Expenses (1,900,631,425) (1,402,578,722) (394,821,839) (262,311,626)

Income Not Liable for Tax (776,922) (2,008,950) (79,171,589) (59,590,941)

627,760,553 1,987,751,581 516,340,146 1,721,973,039

Taxable Profit 627,760,553 1,987,751,581 516,340,146 1,721,973,039

Current Income Tax Expense 175,772,955 556,570,443 144,575,241 482,152,451

The Group tax expense is based on the taxable profit of each Company in the Group. Singer (Sri Lanka) PLC is liable to Income Tax at 28% on

taxable profit with effect from 1st April 2011.

10.2 Deferred Tax Expense/(Income)Consolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Deferred Tax Charge/(Credit) arising due to - Origination and Reversal of Temporary Differences (Note 27.1) 31,262,150 (6,834,483) 10,937,292 (20,797,923)

- Deferred Tax effect on Realisation of Revaluation Surplus (Note 27.2) (4,386,119) – (4,386,119) –

26,876,031 (6,834,483) 6,551,173 (20,797,923)

10.3 Deferred Tax has been computed using the enacted tax rate of 28%.

10.4 Tax Recognised in Other Comprehensive Income2013 2012

Before Tax Tax Expense Net of Tax Before Tax Tax Expense Net of Tax

Group

Revaluation Gain on Property, Plant & Equipment – – – 148,602,050 (21,655,424) 126,946,626

Actuarial Loss on Obligation (4,175,478) 1,169,134 (3,006,344) (30,935,134) 8,661,838 (22,273,296)

(4,175,478) 1,169,134 (3,006,344) 117,666,916 (12,993,586) 104,673,330

Company

Revaluation Gain on Property, Plant & Equipment – – – 148,602,050 (21,655,424) 126,946,626

Actuarial Loss on Obligation (3,728,007) 1,043,842 (2,684,165) (28,907,958) 8,094,228 (20,813,730)

(3,728,007) 1,043,842 (2,684,165) 119,694,092 (13,561,196) 106,132,896



11. Earnings Per Share

11.1 Basic Earnings Per Share is calculated by dividing the profit for the year attributable to the ordinary shareholders by the weighted average

number of ordinary shares outstanding during the year.

11.2 The following reflects the income and share data used in the basic earnings per share computations:


2013 2012 2013 2012Rs. Rs. Rs. Rs.

Amounts used as the Numerator


Profit Attributable to Ordinary Shareholders for Basic Earnings per Share 462,092,642 1,159,616,401 301,894,374 1,029,751,452

Number of Ordinary Shares Used as Denominator

Weighted Average Number of Ordinary Shares in Issue Applicable to Basic Earnings per Share 125,209,610 125,209,610 125,209,610 125,209,610

Basic Earnings per Share (Rs.) 3.69 9.26 2.41 8.22

12. Property, Plant & Equipment 12.1 Gross Carrying Amounts - Consolidated

Balance Additions/ Increase/ Disposals/ Balanceas at Transfers (Decrease) Transfers as at

in Revaluation31.12.2012 31.12.2013

Rs. Rs. Rs. Rs. Rs.

At Cost

Motor Vehicles 272,228,824 7,508,735 – 8,388,206 271,349,353

Furniture & Equipment 213,615,014 22,224,139 – 18,483,773 217,355,380

Plant & Machinery 187,936,029 5,903,866 – – 193,839,895

Culinary School Equipment 75,814 – – – 75,814

E.D.P. Equipment 342,264,832 28,200,745 – 172,793,311 197,672,266

Shop Furniture 271,018,559 158,416,282 – 20,600,348 408,834,493

Shop Equipment 302,346,845 195,251,126 – 41,258,565 456,339,406

Improvements on Leasehold Premises 428,255,816 167,558,575 – 44,414,144 551,400,247

2,017,741,733 585,063,470 – 305,938,347 2,296,866,856

At Valuation

Freehold Land 583,697,750 – – – 583,697,750

Freehold Buildings 589,718,054 – – – 589,718,054

1,173,415,804 – – – 1,173,415,804

Total Gross Carrying Amount 3,191,157,537 585,063,470 – 305,938,347 3,470,282,660



12.2 Depreciation and Impairment Losses

Balance Charge for the Disposals/ Balanceas at Year/ Transfers as at

31.12.2012 Transfer 31.12.2013Rs. Rs. Rs. Rs.

Freehold Buildings – 22,378,454 – 22,378,454

Motor Vehicles 101,595,300 3,916,812 2,431,468 103,080,644

Furniture & Equipment 101,234,257 21,754,824 13,990,175 108,998,906

Plant & Machinery 113,489,824 10,696,519 – 124,186,342

Culinary School Equipment 75,814 – – 75,814

E.D.P. Equipment 262,165,390 25,064,826 172,793,321 114,436,895

Shop Furniture 83,482,808 42,158,973 20,373,403 105,268,378

Shop Equipment 142,080,884 41,506,182 40,643,704 142,943,362

Improvements on Leasehold Premises 235,825,593 52,062,000 44,328,297 243,559,296

Total Depreciation and Impairment Loss 1,039,949,870 219,538,591 294,560,367 964,928,093

12.3 Carrying AmountsGroup

31st December 2013 31st December 2012Rs. Rs.

At Cost 1,354,317,217 977,791,864

At Valuation 1,151,037,350 1,173,415,804

Total Carrying Amount of Property, Plant & Equipment 2,505,354,567 2,151,207,668

12.4 During the financial year the Group’s addition to Property, Plant & Equipment is Rs. 585,063,470/- which includes net transfer of

Rs. 4,500,000/-. The net acquisition of Group aggregate to the value of Rs. 580,563,470/- (2012 - 583,447,337/-) on cash basis.

12.5 Lands and Buildings were revalued during the financial year 2012 by Messrs Chulananda Wellappili, an Independent Valuer. The results of

such revaluation were incorporated in these Financial Statements from its effective date which is 31st December 2012. Such assets were valued

on an open market value for existing use basis. The surplus arising from the revaluation was transferred to a revaluation reserve.

12.6 The carrying amount of the revalued assets that would have been included in the Financial Statements had the assets been carried at cost

would be as follows:

Cost Accumulated Depreciation

Carrying Amount

Rs. Rs. Rs.

Land 103,338,782 – 103,338,782

Building 275,339,177 100,100,484 175,238,693

Total Carrying Amount 378,677,959 100,100,484 278,577,475

12.7 Depreciation charge for the year is included in the following line items in the Statement of Comprehensive Income.

2013 2012Rs. Rs.

Cost of Sales 22,414,845 23,270,570

Other Expenses Excluding Amortisation of Software and Externally Acquired Intangible Assets 197,123,746 209,886,975

219,538,591 233,157,545



12.8 Gross Carrying Amounts - Company

Balance Additions/ Increase/ Disposals/ Balanceas at Transfers (Decrease) Transfers as at

31.12.2012 in Revaluation 31.12.2013

Rs. Rs. Rs. Rs. Rs.

At Cost

Motor Vehicles 265,996,681 6,760,878 – 8,388,206 264,369,353

Furniture & Equipment 192,798,966 12,067,570 – 18,483,773 186,382,763

Plant & Machinery 187,936,029 5,903,866 – – 193,839,895

Culinary School Equipment 75,814 – – – 75,814

E.D.P. Equipment 326,344,613 21,222,250 – 172,793,311 174,773,552

Shop Furniture 271,018,559 158,416,282 – 20,600,348 408,834,494

Shop Equipment 302,346,845 195,251,127 – 41,258,565 456,339,407

Improvements on Leasehold Premises 387,384,988 149,714,710 – 44,414,144 492,685,555

1,933,902,495 549,336,683 – 305,938,347 2,177,300,831

At Valuation

Freehold Land 583,697,750 – – – 583,697,750

Freehold Buildings 589,718,054 – – – 589,718,054

1,173,415,804 – – – 1,173,415,804

Total Gross Carrying Amount 3,107,318,299 – – 305,938,347 3,350,716,635

12.9 Depreciation and Impairment Losses

Balance Charge Disposals/ Balanceas at for the year/ Transfers as at

31.12.2012 Transfers 31.12.2013Rs. Rs. Rs. Rs.

Freehold Buildings – 22,378,454 – 22,378,454

Motor Vehicles 101,164,347 3,021,098 2,431,468 101,753,978

Furniture & Equipment 94,406,002 19,007,518 13,990,175 99,423,346

Plant & Machinery 113,489,823 10,696,519 – 124,186,342

Culinary School Equipment 75,814 – – 75,814

E.D.P. Equipment 252,409,006 22,244,067 172,793,321 101,859,752

Shop Furniture 83,482,808 42,158,973 20,373,403 105,268,378

Shop Equipment 142,080,885 41,506,182 40,643,704 142,943,364

Improvements on Leasehold Premises 213,827,004 48,450,704 44,328,297 217,949,412

Total Depreciation and Impairment Losses 1,000,935,690 209,463,516 294,560,367 915,838,838

12.10 Carrying Amounts

31st December 2013 31st December 2012Rs. Rs.

At Cost 1,283,840,447 932,966,805

At Valuation 1,151,037,350 1,173,415,804

Total Carrying Amount of Property, Plant & Equipment 2,434,877,797 2,106,382,609

12.11 During the financial year, the Company’s additions to Property, Plant & Equipment is Rs. 549,336,683/- which includes net transfer of

Rs. 4,500,000/-. The net acquisition of the Company aggregate to the value of Rs. 544,836,683/- (2012 - 557,235,220/-) on cash basis.

12.12 During the year under review, the Group conducted an operational review of Equipment and Motor Vehicles, which resulted in changes

in the expected usage of certain items of Property, Plant and Equipment. As a result, the estimate related to useful lives of these assets were

revised. The revised useful lives are disclosed under Accounting Policy No. 2.3. The change in estimate for the Company and Group amounted to

Rs. 59.9 million and 63.7 million respectively.



12.13 Lands and Buildings were revalued during the financial year 2012 by Messrs Chulananda Wellappili, an Independent Valuer. The results of

such revaluation were incorporated in these Financial Statements from its effective date which is 31st December 2012. Such assets were valued

on an open market value for existing use basis. The surplus arising from the revaluation was transferred to a revaluation reserve.

12.14 The carrying amount of the revalued assets that would have been included in the Financial Statements had the assets been carried at cost

would be as follows:

Cost Accumulated Depreciation

Carrying Amount

Rs. Rs. Rs.

Land 103,338,782 – 103,338,782

Building 275,339,177 100,100,484 175,238,693

Total Carrying Amount 378,677,959 100,100,484 278,577,475

12.15 Depreciation charge for the year is included in the following line items in the Statement of Comprehensive Income:

2013 2012Rs. Rs.

Cost of Sales 22,414,845 23,270,570

Other Expenses Excluding Amortisation of Software and Externally Acquired Intangible Assets 187,048,671 199,610,570

209,463,516 222,881,140

12.16 Information on the Freehold Land & Buildings of the Company

Location Extent (Perches)

Buildings (Square Feet)

Cost or Revaluation of

Land Rs. ’000


BuildingsRs. ’000

Total ValueRs. ’000

Accumulated Depreciation

Rs. ’000

Net Book Value Rs. ’000

Net BookValue as a

% of Revalued Amount

Ambalantota Main Street, Ambalantota 6.6 1885 6,600,000 4,382,625 10,982,625 1,057,623 9,925,002 90

Balangoda Ratnapura Road, Balangoda 6.2 2080 35,740,000 25,823,438 61,563,438 2,692,501 58,870,937 96

Bandarawela Main Street, Bandarawela 3.69 1535 5,535,000 4,712,875 10,247,875 1,399,154 8,848,721 86

Borella D.S. Senanayaka Mawatha, Borella 4.84 1700 2,552,000 6,120,000 8,672,000 4,050,482 4,621,518 53

Chilaw Bazaar Street, Chilaw 13.05 4120 15,660,000 11,865,600 27,525,600 3,463,053 24,062,547 87

KollupitiyaNo. 143, Galle Road, Colombo 03 3.35 1560 16,750,000 5,760,000 22,510,000 757,748 21,752,252 97

Eheliyagoda Ratnapura Road, Eheliyagoda 5.73 1660 5,730,000 4,938,500 10,668,500 1,859,101 8,809,399 83

Galle Main Street, Galle 2.84 2250 7,100,000 9,000,000 16,100,000 1,684,556 14,415,444 90

Gampaha Colombo Road, Gampaha 19.45 7870 35,740,000 25,823,438 61,563,438 6,416,354 55,147,084 90

Hikkaduwa No. 263, Galle Road, Hikkaduwa 8.74 2400 10,488,000 6,630,000 17,118,000 1,838,004 15,279,996 89

Hingurakgoda Main Road, Hingurakgoda 15.25 2145 15,250,000 6,113,250 21,363,250 2,560,656 18,802,594 88

Kadawatha Kandy Road, Kadawatha 3.8 1150 5,500,000 3,176,875 8,676,875 1,001,232 7,675,643 88

Kandy - Mega Sirimavo Bandaranaike Mawatha, Kandy 9.55 12840 23,602,500 40,862,800 64,465,300 11,305,510 53,159,790 82

Katugastota Madawala Road, Katugastota 4.875 535 5,512,500 5,512,500 – 5,512,500 100

Kirindiwela Gampaha Road, Kirindiwela 8.1 2940 9,720,000 8,489,250 18,209,250 2,064,389 16,144,861 89



Location Extent (Perches)

Buildings (Square Feet)


Land Rs. ’000


BuildingsRs. ’000

Total ValueRs. ’000

Accumulated Depreciation

Rs. ’000

Net Book Value Rs. ’000

Net BookValue as a

% of Revalued Amount

Kurunegala Bodhiraja Mawatha, Kurunegala 7.66 2230 15,320,000 5,766,250 21,086,250 1,567,402 19,518,848 93

Maharagama High Level Road, Maharagama 6.2 2700 17,050,000 8,977,500 26,027,500 1,949,732 24,077,768 93

Matara Anagarika Dharmapala Mawatha, Matara 10 3520 21,000,000 12,320,000 33,320,000 3,052,175 30,267,825 91

Middeniya Katuwana Road, Middeniya 8.25 2670 8,250,000 6,728,400 14,978,400 1,850,226 13,128,175 88

Mount Lavinia Galle Road, Mount Lavinia 7.5 1900 22,500,000 6,234,375 28,734,375 1,603,344 27,131,031 94

Mount Lavinia - Mega Galle Road, Mount Lavinia 20 15840 60,027,500 63,504,478 123,531,978 15,401,544 108,130,434 88

Nawalapitiya Kotmale Road, Nawalapitiya 5.25 2760 8,225,000 6,053,000 14,278,000 2,084,219 12,193,781 85

Negombo Greens Road, Negombo 6 2040 15,000,000 5,992,000 20,992,000 1,628,689 19,363,311 92

Nuwara-Eliya Kandy Street, Nuwara-Eliya 4.65 1700 11,625,000 5,259,375 16,884,375 1,453,633 15,430,742 91

Panadura Galle Road, Panadura 6.15 2940 11,070,000 8,731,800 19,801,800 2,243,177 17,558,623 89

Piliyandala Gonamaditta Road, Piliyandala 1152 116410 131,600,250 268,368,350 399,968,600 52,142,249 347,826,351 87

Pussellawa Nuwara-Eliya Road, Pussellawa 12.43 3295 12,430,000 8,649,375 21,079,375 2,787,798 18,291,577 87

Ratnapura Colombo Road, Ratnapura 5.8 2735 8,700,000 7,384,500 16,084,500 2,282,604 13,801,896 86

Tangalle Matara Road, Tangalle 4.6 1285 8,050,000 1,606,250 9,656,250 117,600 9,538,650 99

Trincomalee North Coast Road, Trincomalee 12.12 2.184 8,370,000 2,850,000 11,220,000 431,972 10,788,028 96

Wellawatta Galle Road, Wellawatta, Colombo 06 4.6 2700 23,000,000 7,593,750 30,593,750 2,492,868 28,100,882 92

583,697,750 589,718,054 1,173,415,804 135,239,594 1,038,176,210

13. Intangible AssetsConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

13.1 Trade Marks

Summary

Cost

As at the beginning of the Year 93,512,500 93,512,500 93,512,500 93,512,500

As at the end of the Year 93,512,500 93,512,500 93,512,500 93,512,500

Less: Accumulated Impairment Loss – – – –

Net Carrying Amount 93,512,500 93,512,500 93,512,500 93,512,500



13.2 SoftwareConsolidated Company

31st December2013

31st December2012

31st December2013

31st December2012

Rs. Rs. Rs. Rs.

Summary

Cost


Transferred from Property, Plant & Equipment 40,800,282 20,699,832 40,800,282 20,699,832

Acquired/Incurred during the Year (Note 13.7) 20,623,748 19,332,048 7,177,329 7,482,169


Amortisation


Transferred from Property, Plant & Equipment 40,800,282 – 40,800,282 –

Amortisation Charge for the Year 5,397,967 12,059,353 1,629,888 9,844,815


Carrying Amount



13.3 Other Intangible Assets Externally Acquired

Cost


Acquired/Incurred during the Year – – – –

Capitalised during the Year – – – –


Amortisation


Amortisation Charge for the Year 6,400,015 6,399,996 6,400,015 6,399,996


Carrying Amount


As at the end of the Year – 6,400,015 – 6,400,015

Total Net Carrying Amount 198,081,666 189,255,900 166,101,003 166,953,577

13.4 Sisil Trademark

The Company had acquired the 'SISIL' trade mark in December 2000, amounting to Rs. 55 million. The management is of the opinion that the

aforementioned trademark has an indefinite useful life as their associated brand awareness and recognition has existed over 30 years and the

company intends to utilise and the said trademark for the foreseeable future. There are no legal, regulatory, contractual, competitive, economic,

or other factors that may limit its useful life and accordingly, the carrying amount of this trademark is determined after testing for impairment

annually. Following assumptions are made to test for any impairment as at 31st December 2013.

Annual Sales Growth for the Next Five Years 10%

Gross Margin 24%

Discount Rate 11.77%

Indefinite Growth Rate after Year 2018 2%



13.5 UNIC Trademark

The Company acquired the 'UNIC' Trade mark in 2006 amounting Rs. 38,512,500/-. This trade mark is also considered to have an indefinite useful

life due to the factors mentioned in the preceding paragraph accordingly, the carrying amount of this trademark is determined after testing for

impairment annually. Following assumptions are made to test for impairment as at 31st December 2013.

Annual Sales Growth for the Next Five Years

Gross Margin 28%

Discount Rate 11.77%

Indefinite Growth Rate after Year 2018 2%

13.6 The Company took over the showrooms, retail operation of the Hayleys Electronic Retail Ltd. from 2nd January 2008 and Agencies of

Phillips and Kenwood from Hayleys Electronic Ltd. for Rs. 32 million. The entire purchase consideration was amortised over the determined useful

life of 5 years.

13.7 The Subsidiary had acquired the Software which is categorised as intangible assets, amounting to Rs. 13,446,418/-. It is amortised over

5 years, commencing from the date of effective use. Consolidated Company

31st December 2013

31st December2012

31st December2013

31st December2012

Rs. Rs. Rs. Rs.

13.8 Amortisation Charge for the Year

Amortisation of Software 5,397,967 12,059,353 1,629,888 9,844,815

Amortisation of Other Intangible Assets Externally Acquired 6,400,015 6,399,996 6,400,015 6,399,996

11,797,982 18,459,349 8,029,903 16,244,811

14. Investment in Subsidiary - Company

Carrying Market Carrying Market Country of No. of Shares No. of Shares Value Value Value Value

Incorporation 31st December 31st December 31st December 31st December 31st December 31st December2013 2012 2013 2013 2012 2012

Rs. Rs Rs. Rs.


Investment on 1st January Sri Lanka 132,931,054 80,000,000 982,241,596 1,555,293,332 400,000,000 1,096,000,000

Investments made during the Year – 52,931,054 – – 582,241,596 725,155,440

Carrying Amount as at 31st December 132,931,054 132,931,054 982,241,596 1,555,293,332 982,241,596 1,821,155,440



15. Investments in Equity Accounted Investees15.1 Investment in Equity Accounted Investees - Consolidated

Holding Consolidated Share of Consolidated% Carrying Profit/(Loss) Carrying

Amount Net of Dividends Amount31st December 31st December 31st December Received for 31st December

2013 2012 2013 the Year 2012Rs. Rs. Rs.

Non-Quoted

Reality Lanka Ltd. (Note 15.2) 40 40 53,225,789 1,301,074 52,663,202

Telshan Network (Pvt) Ltd. 23.56 23.56 – – –

Total Non-Quoted Investments in Equity Accounted Investees – – 53,225,789 – 52,663,202

Net Carrying Amount of Investments in Equity Accounted Investees 53,225,789 – 52,663,202

15.2 Share of Equity - Accounted InvesteesConsolidated

31st December2013

31st December2012

Rs. Rs.

Reality Lanka Ltd.

Balance Brought Forward 4,663,202 (1,114,353)

Current Year Share of Profit - Net of Tax 1,282,586 5,777,555

Less: Dividends Received - Gross (720,000) –

5,225,789 4,663,202

Total Share of Equity - Accounted Investees Retained Profits 5,225,789 4,663,202

Cost of Equity - Accounted Investees (Note 15.3) 48,000,000 48,000,000

Total Carrying Amount of Investment in Equity - Accounted Investees 53,225,789 52,663,202

15.3 Movement of Investment - Cost

Consolidated Increase/ ConsolidatedBalance as at (Decrease) Balance as at

31st December 2012

in Investments 31st December 2013

Rs. Rs. Rs.

Reality Lanka Ltd. 48,000,000 – 48,000,000

Telshan Network (Pvt) Ltd. (Note 15.6) – – –

48,000,000 – 48,000,000

15.4 Summarised Financial Information of Equity - Accounted Investees

In Thousands of Rs. OwnershipCurrent Assets

Non-Current Assets

Total Assets

Current Liabilities

Non-CurrentLiabilities

Total Liabilities

2012

Reality Lanka Ltd. (Associate) 40% 5,697 200,705 206,402 74,767 – 74,767

2013

Reality Lanka Ltd. (Associate) 40% 3,575 200,494 204,069 71,004 – 71,004



15.5 Investment in Equity - Accounted Investees - Company

Carrying Carrying No. of Shares Amount Amount

2013 2012 2013 2012Rs. Rs.

Non-Quoted

Telshan Network (Pvt) Ltd. (Note 15.6) 2,000,000 2,000,000 – –

Reality Lanka Ltd. 4,800,000 4,800,000 48,000,000 48,000,000

Total Investments in Non-Quoted Equity-Accounted Investees 48,000,000 48,000,000

Net Carrying Amount of Investment in Equity-Accounted Investees 48,000,000 48,000,000

15.6 Investment in Telshan Network (Pvt) Ltd. amounting to Rs. 20,000,000/- had been written off since it carries negative net assets position.

16. Other Financial Assets16.1 Non-Current Financial Assets


No. of Shares

2013 2012 2013 2012 2013 2012 Rs. Rs. Rs. Rs.

a. Available-for-Sale Financial Assets

Non-Quoted

Equity Investment Lanka Ltd. 1,665,000 1,665,000 17,020,000 17,020,000 17,020,000 17,020,000

Credit Information Bureau of Sri Lanka 100 100 41,300 41,300 – –

17,061,300 17,061,300 17,020,000 17,020,000

b. Held-to-Maturity Financial Assets

Investments in Debentures

Singer Finance (Lanka) PLC (Fixed Rate 14%, Unsecured, Redeemable, Listed Debentures Redeemable on 10.09.2016) – – 149,283,000 –

– – 149,283,000 –

17,061,300 17,061,300 166,303,000 17,020,000

2013 2012 2013 2013Rs. Rs. Rs. Rs.

16.2 Current Financial Assets

a. Held-to-Maturity Financial Assets

Investment in Treasury Bills 427,885,421 318,719,907 – –

427,885,421 318,719,907 – –

17. InventoriesConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Raw Materials 169,327,000 152,256,536 169,327,000 152,256,536

Work-in-Progress 39,182,000 37,573,236 39,182,000 37,573,236

Finished Goods 4,527,262,984 3,765,359,229 4,527,262,984 3,765,359,229

Supplies and Parts 392,379,408 287,717,482 392,379,408 287,717,482

Goods-in-Transit 263,705,983 230,034,398 263,705,983 230,034,398

5,391,857,375 4,472,940,881 5,391,857,375 4,472,940,881

Less: Impairment of Inventories (226,012,746) (225,802,825) (226,012,746) (225,802,825)

Consignment Inventories (10,178,649) (21,063,811) (10,178,649) (21,063,811)

Total Inventories 5,155,665,980 4,226,074,244 5,155,665,980 4,226,074,244



Raw materials, consumable and change in work-in-progress and finished goods are recognised as cost of sales by the Group and Company to the

amount of Rs. 1,153,273,441/- (2012 - Rs. Rs. 1,127,992,979/-) and Rs. 1,153,372,441/- (2012 - Rs. 1,127,992,979/-) respectively.

18. Loans Due from Related PartiesConsolidated Company

2013 2012 2013 2012Relationship Rs. Rs. Rs. Rs.

Reality Lanka Ltd. Associate Company 69,634,631 73,634,631 69,634,631 73,634,631

Regnis Appliances (Lanka) Ltd. Affiliate Company – 20,000,000 – 20,000,000

Singer Finance (Lanka) PLC Subsidiary – – 21,246,027 1,398,419,204

69,634,631 93,634,631 90,880,658 1,492,053,836

18.1 The Management intends to recover the above loans within one year from the Reporting date. Interest is charged at the rate 1% above the Company's effective rate. The aforesaid loans are not secured.

19. Trade and Other Receivables19.1 Non-Current


2013 2012 2013 2012Rs. Rs. Rs. Rs.

Hire Debtors 2,920,197,236 2,585,598,380 1,012,495,199 893,564,538

Less: Deferred Profit on Hire Sales (587,593,193) (501,468,721) (181,641,639) (153,693,101)

2,332,604,043 2,084,129,659 830,853,560 739,871,437

Lease Rental Receivables

Gross Instalment in Lease 3,008,109,897 2,935,254,913 – –

Rental Received in Advance (1,038,401) (1,217,630) – –

3,007,071,496 2,934,037,283 – –

Less: Unearned Income (639,026,957) (669,059,899) – –

2,368,044,539 2,264,977,384 – –

Loan Debtors

Consumer and Personal Loans 314,420,278 144,423,037 – –

Rental Received in Advance (4,807,526) – – –

Unearned Loan Interest Income (55,105,871) (29,853,845) – –

254,506,881 114,569,192 – –

Other Receivables 485,691,480 399,477,578 485,691,480 399,477,579

Loans to Employees (Note 19.3) 228,382,178 181,636,427 197,586,506 156,133,970

714,073,658 581,114,005 683,277,986 555,611,549

5,669,229,121 5,044,790,241 1,514,131,546 1,295,482,986



19.2 CurrentConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Hire Debtors 6,143,311,392 5,197,732,996 4,765,009,448 3,960,224,114

Rental Received in Advance (143,203) (212,222) – –

Less: Deferred Profit on Hire Sales (1,316,367,831) (1,096,657,890) (876,734,534) (704,338,541)

Provision for Impairment (73,650,972) (49,344,980) (35,052,000) (44,736,495)

4,753,149,386 4,051,517,904 3,853,222,914 3,211,149,078

Lease Rental Receivables

Gross Instalment in Lease 2,126,714,143 1,717,420,103 – –

Less: Unearned Income (721,458,785) (658,628,623) – –

Provision for Impairment (83,430,098) (13,280,747) – –

1,321,825,260 1,045,510,733 – –

Loan Debtors

Consumer and Personal Loans 876,101,539 1,137,751,935 – –

Less: Unearned Loan Interest Income (182,830,728) (202,076,672) – –

FD Loans 89,793,397 57,035,391 – –

Net Receivable 783,064,207 992,710,652 – –

Less: Provision for Impairment (34,551,360) (19,492,549) – –

748,512,846 973,218,104 – –

Other Debtors

Trade Receivables 1,546,948,055 1,220,235,923 1,511,688,519 1,220,235,923


Advance and Other Receivables 1,172,857,410 1,074,749,257 1,138,016,826 947,449,038


Shipping Guarantees 39,395,127 3,237,255 39,395,127 3,237,255

Prepayments 182,572,001 123,341,013 109,258,984 70,723,261

Loans to Employees (Note 19.3) 105,302,865 126,058,078 93,960,000 119,059,935

2,694,549,148 2,285,406,853 2,546,368,728 2,117,868,307

9,518,036,640 8,355,653,594 6,399,591,642 5,329,017,385

19.3 Loans to Company Employees Consolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Movement

Balance as at the beginning of the Year 307,694,506 270,476,326 275,193,905 238,615,427

Loans Granted during the Year 124,483,360 145,772,900 98,265,860 118,269,900

Less: Repayments (98,492,823) (108,554,720) (81,913,259) (81,691,422)

Balance as at the end of the Year 333,685,044 307,694,506 291,546,506 275,193,905

Due within One Year 105,302,865 126,058,079 93,960,000 119,059,935

Due after One Year 228,382,178 181,636,427 197,586,506 156,133,970

19.4 Maturity Analysis of Trade and Other receivables

Less than 3-12 1-3 3-5 Over Total 3 Months Months Years Years 5 Years 2013

Rs. Rs. Rs. Rs. Rs. Rs.

Hire Debtors 251,385,523 4,501,763,863 2,033,376,219 298,142,716 1,085,108 7,085,753,429

Lease Rental Receivables 328,363,268 993,461,992 1,996,607,049 370,221,881 1,215,609 3,689,869,799

Loans and Other receivables 507,747,914 2,935,314,080 938,907,460 28,968,938 704,142 4,411,642,535

1,087,496,705 8,430,539,934 4,968,890,727 697,333,536 3,004,859 15,187,265,762



20. Amounts Due from Related Parties Consolidated Company


Singer Finance (Lanka) PLC Subsidiary – – – 4,182,602

Regnis Appliances (Lanka) Ltd. Affiliate Company – 127,496,155 – 127,496,155

Singer Asia Sourcing Ltd. Affiliate Company 7,619,556 7,396,498 7,619,556 7,396,498

7,619,556 134,892,653 7,619,556 139,075,254

21. Cash and Cash Equivalents 21.1 Favourable Cash and Cash Equivalents


2013 2012 2013 2012Rs. Rs. Rs. Rs.

Cash & Bank Balances 692,457,844 615,316,097 519,015,324 424,276,574

21.2 Unfavourable Cash and Cash Equivalent Balances

Bank Overdrafts (Note 26.1 & 26.6) (841,102,180) (663,514,715) (753,318,829) (631,580,202)

Total Cash and Cash Equivalents for the Purpose of Cash Flow Statement (148,644,336) (48,198,618) (234,303,505) (207,303,628)

22. Stated Capital

At the Issued for Issued for At the beginning Cash during Non-Cash end of

of the Year the Year Consideration the Year 01.01.2013 31.12.2013

Number Number Number Number

Number of Shares - Ordinary Shares 125,209,610 – – 125,209,610

125,209,610 – – 125,209,610

Rs. Rs. Rs. Rs.

Rupees - Ordinary Shares 626,048,050 – – 626,048,050

626,048,050 – – 626,048,050

22.1 Rights, Preference and Restrictions of Classes of Capital

The holders of ordinary shares are entitled to receive dividend as declared from time to time and are entitled to one vote per share at a meeting

of the Company.

22.2 Shares held by Group Companies

The shares of the Company held by the Group Companies are as follows:

2013 2012Number Number

Singer (Sri Lanka) B.V. 107,812,850 107,812,850



23. Capital ReservesConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

(a) Revaluation Reserve

Revaluation Reserve (Note 23.1) 762,033,802 773,312,374 762,033,802 773,312,374

762,033,802 773,312,374 762,033,802 773,312,374

23.1 Revaluation Reserve


Revaluation during the Year – 148,602,050 – 148,602,050

Deferred Tax on Revaluation Surplus – (21,655,424) – (21,655,424)

Realisation on Revaluation Surplus (11,278,572) (12,622,416) (11,278,572) (12,622,416)

Deferred Tax Effect on Transfer of Revaluation Surplus – 3,534,276 – 3,534,276


The revaluation reserve relates to revaluation of freehold land and buildings which represents the fair value of the land and buildings as at the

date of revaluation.

24. Statutory ReservesConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

(a) Reserve Fund

Reserve Fund (Note 24.1) 40,454,818 27,628,118 – –

40,454,818 27,628,118 – –

The balance in the reserve fund will be used only for the purposes specified in the Central Bank Direction No. 1 of 2003.

(b) Investment Fund

Investment Fund (Note 24.2) 87,991,727 50,797,000 – –

87,991,727 50,797,000 – –

128,446,545 78,425,118 – –

The Subsidiary Company, Singer Finance (Lanka) PLC is required to transfer 8% of the profits calculated for the payment of Value Added Tax (VAT)

on financial services to a fund identified as a ‘Investment Fund Account’ as per the proposal made in the Government Budget 2011.

The guidelines have also been issued by the Central Bank of Sri Lanka on utilisation of funds in this account.


2013 2012 2013 2012Rs. Rs. Rs. Rs.

24.1 Reserve Fund

Balance as at the beginning of the Year 27,628,118 16,350,118 – –

Transfer of Surplus during the Year 12,826,700 11,278,000 – –

Balance as at the end of the Year 40,454,818 27,628,118 – –

24.2 Investment Fund

Balance as at the beginning of the Year 50,797,000 28,057,705 – –

Transfers during the Year 37,194,727 22,739,295 – –

Balance as at the end of the Year 87,991,727 50,797,000 – –




2013 2012 2013 2012Rs. Rs. Rs. Rs.

25. Revenue Reserves Summary

(a) General Reserve (Note 25.1) 2,500,000,000 2,500,000,000 2,500,000,000 2,500,000,000

2,500,000,000 2,500,000,000 2,500,000,000 2,500,000,000

(b) Retained Earnings (Note 25.2) 947,544,210 1,278,395,286 428,810,118 869,578,997

947,544,210 1,278,395,286 428,810,118 869,578,997

3,447,544,210 3,778,395,286 2,928,810,118 3,369,578,997

25.1 General Reserve

The general reserve which is a revenue reserve represents the amounts set aside by the Directors for general application.

The movement of general reserve is as follows:


2013 2012 2013 2012Rs. Rs. Rs. Rs.

At the beginning of the Year 2,500,000,000 2,200,000,000 2,500,000,000 2,200,000,000

Transferred from Retained Earnings – 300,000,000 – 300,000,000

At the end of the Year 2,500,000,000 2,500,000,000 2,500,000,000 2,500,000,000

25.2 Retained Earnings

Singer (Sri Lanka) PLC 428,810,118 869,578,997 428,810,118 869,578,997

Equity Accounted Investees (Note 15.2) 5,225,789 4,663,202 – –

Subsidiary Company 446,318,963 298,115,288 – –

Gain on Dilution of Equity holding of Singer Finance (Lanka) PLC 176,573,748 176,573,748 – –

Acquisition of Subsidiary with Non-Controlling Interests (4,810,872) (4,810,872) – –

Retained Earnings Attributable to Non-Controlling Interests (Note 25.3) (104,573,536) (65,725,077) – –

947,544,210 1,278,395,286 428,810,118 869,578,997

25.3 Retained Earnings Attributable to Non-Controlling Interests

At the beginning of the Year 65,725,077 32,568,933 – –

Profit Attributable to Minority Shareholders - for the Year 59,909,941 55,696,216 – –

Rights Issue Expenses – (1,206,739) – –

Dividend for Minority Shareholders - for the Year (21,061,482) (21,333,333) – –

At the end of the Year 104,573,536 65,725,077 – –

26. Interest-Bearing Loans and Borrowings26.1 Loans and Borrowings - Consolidated

2013 2013 2013 2012 2012 2012Amount Amount Total Amount Amount Total

Repayable Repayable Repayable RepayableWithin 1 Year After 1 Year Within 1 Year After 1 Year


Debentures (Note 26.2) – 3,979,958,918 3,979,958,918 472,000,000 1,400,000,000 1,872,000,000

Bank Loans (Note 26.3) 5,162,014,341 107,156,854 5,269,171,195 4,044,556,397 233,822,786 4,278,379,183

Bank Overdraft (Note 21.2) 841,102,180 – 841,102,180 663,514,715 – 663,514,715

Commercial Papers (Note 26.4) 200,000,000 250,000,000 450,000,000 2,159,509,183 – 2,159,509,183

6,203,116,521 4,337,115,772 10,540,232,293 7,339,580,296 1,633,822,786 8,973,403,082



26.2 Debentures - Consolidated

As at New Redemption As at 01.01.2013 Issues 31.12.2013

Rs. Rs. Rs. Rs.

19.75% Debentures unsecured redeemable on 29.02.2013 272,000,000 – 272,000,000 –

AWPLR+1.25 Debentures unsecured redeemable on 31.12.2013 200,000,000 – 200,000,000 –

Fixed rate 15.50%. Senior, unlisted, unsecured, rated Debentures redeemable on 09.05.2015 59,000,000 – – 59,000,000

Six month Gross TB +2.75% Senior, unlisted, unsecured, rated Debentures redeemable on 09.05.2015 340,000,000 – – 340,000,000




Fixed rate 14.50%. Senior, Rated, Unsecured, Redeemable, Listed Debentures Redeemable on 30.05.2016 – 1,500,000,000 – 1,500,000,000

36 Months 14% Debentures Unsecured redeemable on 10.09.2016 – 409,914,933 – 409,914,933

48 Months 14.25% Debentures Unsecured redeemable on 10.09.2017 – 409,721,486 – 409,721,486

60 Months 14.50% Debentures Unsecured redeemable on 10.09.2018 – 409,605,499 – 409,605,499

Less: Investment in Debentures in Subsidiary – (149,283,000) – (149,283,000)

1,872,000,000 2,579,958,918 472,000,000 3,979,958,918

26.3 Bank Loans - Consolidated

Balance as at Loans Repayment As at 01.01.2013 Obtained 31.12.2013

Rs. Rs. Rs. Rs.

(a) Movement of Bank Loans

Bank Loans 4,278,379,183 7,285,579,636 6,294,787,626 5,269,171,195

4,278,379,183 7,285,579,636 6,294,787,626 5,269,171,195

(b) Bank Loan Repayable after One Year

Company Lender/Rate Repayment Security 2013 2012of Interest (p.a.) Rs. Rs.

Singer (Sri Lanka) PLC E-Friends Loan @ 6.5% At Maturity No Assets Pledged 880,854 2,554,786

880,854 2,554,786

Singer Finance (Lanka) PLC Sampath Bank AWPLR + 2 (Floor rate 22%) Rate Reviewed Quarterly

Monthly Repayment Hire Purchase/Lease receivables 37,526,000 87,518,000

Commercial Bank Monthly Repayment Hire Purchase/Lease receivables 68,750,000 143,750,000

106,276,000 231,268,000

107,156,854 233,822,786

26.4 Commercial Papers - Consolidated


Rs. Rs. Rs. Rs.

Commercial Papers 2,159,509,183 300,000,000 2,009,509,183 450,000,000

2,159,509,183 300,000,000 2,009,509,183 450,000,000



26.5 Bank Facilities - Consolidated

2013 2012Utilised Total Facility Utilised Total Facility

Rs. Rs. Rs. Rs.

Overdraft 841,102,180 2,490,000,000 675,908,509 1,640,000,000

Term Loans 482,235,378 750,880,854 608,814,786 852,554,786

Short-Term Loans 5,236,935,816 7,964,900,000 5,725,756,091 8,213,245,214

Debentures 3,979,958,918 3,979,958,918 1,872,000,000 1,872,000,000

Total Debt Facility 10,540,232,292 15,185,739,772 8,882,479,386 12,577,800,000

Guarantees 213,635,167 450,000,000 – 450,000,000

Letter of Credit 2,261,817,907 2,540,000,000 1,528,069,676 1,785,000,000

Total Debt and Other Facilities 13,015,685,366 18,175,739,772 10,410,549,062 14,812,800,000

26.6 Interest-Bearing Loans and Borrowings - Company

2013 2013 2013 2012 2012 2012Amount Amount Total Amount Amount Total

Repayable Repayable Repayable RepayableWithin 1 Year After 1 Year Within 1 Year After 1 Year


Debentures (Note 26.7) – 2,900,000,000 2,900,000,000 472,000,000 1,400,000,000 1,872,000,000

Bank Loans (Note 26.8) 4,771,935,816 880,854 4,772,816,670 3,517,522,091 2,554,786 3,520,076,877

Bank Overdrafts (Note 21.2) 753,318,829 – 753,318,829 631,580,202 – 631,580,202

Commercial Papers (Note 26.9) 200,000,000 250,000,000 450,000,000 2,058,234,000 – 2,058,234,000

5,725,254,645 3,150,880,854 8,876,135,499 6,679,336,293 1,402,554,786 8,081,891,079

26.7 Debentures - Company

Balance as at New Redemption As at 31.12.2012 Issues 31.12.2013

Rs. Rs. Rs. Rs.

19.75% Debentures unsecured redeemable on 29.02.2013 272,000,000 – 272,000,000 –

AWPLR+0.65 Debentures unsecured redeemable on 31.12.2013 200,000,000 – 200,000,000 –


Six month Gross TB +2.75% Senior, unlisted, unsecured, rated Debentures redeemable on 09.05.2015 340,000,000 – – 340,000,000


Fixed rate 17.00%. Senior, listed, unsecured, rated Debentures redeemable on 30.09.2015 644,000,000 – – 644,000,000

Fixed rate 17.00%. Senior, listed, unsecured, rated Debentures redeemable on 30.09.2015 356,000,000 – – 356,000,000

Fixed rate 14.50%. Senior, Rated, Unsecured, Redeemable, Listed Debentures (Type A) Redeemable on 30.05.2015 – 600,000,000 – 600,000,000

Fixed rate 14.50%. Senior, Rated, Unsecured, Redeemable, Listed Debentures (Type B) Redeemable on 30.05.2016 – 900,000,000 – 900,000,000

1,872,000,000 1,500,000,000 472,000,000 2,900,000,000



26.8 Bank Loans - Company

As at Obtained Repayment As at 01.01.2013 31.12.2013

Rs. Rs. Rs. Rs.

(a) Movement of Bank Loans

Bank Loans 3,520,076,877 6,790,579,637 5,537,839,844 4,772,816,670

3,520,076,877 6,790,579,637 5,537,839,844 4,772,816,670

(b) Bank Loan Repayable after One Year

Lender/Rate of Interest (p.a.) Repayment Security 2013 2012Rs. Rs.

E-Friends Loan @ 6.5% At Maturity No Assets pledged 880,854 2,554,786

880,854 2,554,786

26.9 Commercial Papers - Company


Rs. Rs. Rs. Rs.

Commercial Papers 2,058,234,000 300,000,000 1,908,234,000 450,000,000

2,058,234,000 300,000,000 1,908,234,000 450,000,000

26.10 Bank Facilities - Company

2013 2012Utilised Total Facility Utilised Total Facility

Rs. Rs. Rs. Rs.

Overdraft 753,318,829 1,890,000,000 643,973,996 1,370,000,000

Term Loans 250,880,854 250,880,854 252,554,786 252,554,786

Short-Term Loans 4,971,935,816 7,564,900,000 5,325,756,091 7,738,245,214

Debentures 2,900,000,000 2,900,000,000 1,872,000,000 1,872,000,000

Total Debt Facility 8,876,135,499 12,605,780,854 8,094,284,873 11,232,800,000

Guarantees 213,635,167 450,000,000 – 450,000,000

Letter of Credit 2,261,817,907 2,540,000,000 1,528,069,676 1,785,000,000

Total Debt and Other Facilities 11,351,588,573 15,595,780,854 9,622,354,549 13,467,800,000

27. Deferred Tax Assets/(Liabilities)Consolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

27.1 Deferred Tax Assets


Origination and Reversal of Timing Differences - Recognised in Statement of Comprehensive Income (31,262,150) 6,834,484 (10,937,292) 20,797,923


27.2 Deferred Tax Liabilities


Origination of Deferred Tax Liability due to Revaluation of Building - Recognised in Equity – 21,655,424 – 21,655,424

Deferred Tax Effect on Realisation of Revaluation Surplus (4,386,119) (3,534,277) (4,386,119) (3,534,277)




27.3 Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against tax liabilities and

when the deferred tax relate to the same fiscal authority.

The movement in deferred tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the

same tax jurisdiction, is as follows:

27.3.1 Consolidated

2013 2012Assets Liabilities Assets Liabilities

Rs. Rs. Rs. Rs.

(a) Composition of Deferred Tax Assets

Property, Plant & Equipment – 143,961,449 – 88,258,743

Intangible Assets – 8,978,377 – 9,298,141

Lease Rentals 55,761,439 8,022,376 –

Tax Losses 22,414,292

Inventories 63,283,569 – 63,224,791 –

Provision on Assets 152,416,084 – 100,842,700 –

Deferred Benefit Obligations 89,609,203 – 75,751,052 –

327,723,148 208,701,265 247,840,919 97,556,884

Net Deferred Tax 119,021,885 – 150,284,035 –

(b) Composition of Deferred Tax Liabilities


– 109,540,205 – 113,926,324

Net Deferred Tax – 109,540,205 – 113,926,324

27.3.2 Company

2013 2012Assets Liabilities Assets Liabilities

Rs. Rs. Rs. Rs.

(a) Composition of Deferred Tax Assets


Intangible Assets – 3,964,450 – 3,782,100

Inventories 63,283,569 – 63,224,791 –

Provision on Assets 127,590,856 – 100,842,700 –

Deferred Benefit Obligations 85,619,203 – 72,620,419 –

276,493,627 141,131,146 236,687,910 90,388,137

Net Deferred Tax 135,362,481 – 146,299,773 –

(b) Composition of Deferred Tax Liabilities


– 109,540,205 – 113,926,324

Net Deferred Tax – 109,540,205 – 113,926,324



28. Retirement Benefit ObligationsConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Present Value of Unfunded Gratuity 320,032,869 270,539,471 305,782,867 259,358,640

Total Present Value of the Obligation 320,032,869 270,539,471 305,782,867 259,358,640

Provision for Retiring Gratuity

At the beginning of the Year 270,539,471 204,787,190 259,358,640 197,833,421

Actuarial (Gain)/Loss on Obligation 4,175,478 30,935,134 3,728,007 28,907,958

Current Service Cost 23,339,306 22,911,982 21,261,593 20,812,242

Interest on Obligation 28,406,644 21,502,656 27,232,657 20,772,510

326,460,899 280,136,962 311,580,897 268,326,131

Benefit Paid (6,428,030) (9,597,491) (5,798,030) (8,967,491)

At the end of the Year 320,032,869 270,539,471 305,782,867 259,358,640

The Company maintains a non-contributory defined benefit plan providing for gratuity benefits payable to employees expressed in terms of final

monthly salary and service.

As at 31st December 2013, the gratuity liability was actuarial valued under the Projected Unit Credit (PUC) method by a professionally qualified

actuary firm Messrs Actuarial & Management Consultants (Private) Ltd.

The required accounting provision of the Company as at 31st December 2013, has been determined based on the recommendation

on this Report.

Following key assumptions were made in arriving at the above figures:

(a) Rate of Discount - 10.5% p.a. (net of tax)

(b) Salary Increment Rate

Year 1 10%

Year 2+ 9%

(c) Retirement Age

Other than Factory General Staff Factory General Staff

Males 60 years 55 years

Females 60 years 55 years

(d) Assumptions regarding future mortality are based on A67/70 Mortality Table, issued by the Institute of Actuaries, London. The demographic

assumptions underline the valuation are with respect to retirement age, early withdrawal from service and retirement on medical grounds.

The expense so recognised is included in Selling and Administrative expenses in the Statement of Comprehensive Income.



29. Trade and Other PayablesConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Trade Payables 1,899,497,704 1,286,671,908 1,720,663,007 1,159,098,596

Interest Expense Payable 127,147,781 144,510,118 127,147,781 144,510,118

Value Added Tax Payable 78,717,602 2,749,248 77,843,664 1,900,000

MSPS Payable 25,941,549 22,884,662 25,941,549 22,884,662

ETF Payable 6,825,765 6,096,640 6,825,765 6,096,640

Advances Received from Customers 167,411,031 105,034,709 167,411,031 105,034,709

Accrued Expenses 627,249,463 616,345,460 594,877,526 585,003,002

Other Payables 379,167,884 264,596,731 169,103,209 164,436,840

Warranty Provisions 74,678,901 72,578,901 74,678,901 72,578,901

3,386,637,680 2,521,468,377 2,964,492,433 2,261,543,468

29.1 Warranty provisions have been recognised for expected warranty claims on products sold by the Company.

30. Deferred RevenueConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Balance as at the beginning of the year 22,329,750 17,653,550 22,329,750 17,653,550

Amounts Recognised as Revenue during the Year (1,451,400) 4,676,200 (1,451,400) 4,676,200


30.1 Deferred revenue includes deferred service fee on air conditioners and amount deferred on motor bike services income as at

31st December 2013.

31. Dividend PayableConsolidated Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Unclaimed Dividends 14,956,444 10,822,388 14,956,444 10,822,388

14,956,444 10,822,388 14,956,444 10,822,388

32. DividendsCompany

2013 2012Rs. Rs.

Ordinary Shares

Proposed Final Dividend 2013 - Rs. 2.50 (2012 - Rs. 6.00) 313,024,025 751,257,660

313,024,025 751,257,660



33. Amounts due to Related PartiesConsolidated Company


33.1 Trade

Singer Industries (Ceylon) PLC Affiliate Company 104,330,912 116,912,950 104,330,912 116,912,950

Regnis (Lanka) PLC Affiliate Company 167,224,499 48,854,321 167,224,499 48,854,321

Regnis Appliances (Pvt) Ltd. Affiliate Company 62,009,670 – 62,009,670 –

333,565,081 165,767,271 333,565,081 165,767,271

33.2 Non-Trade

Singer Asia Ltd. Affiliate Company 76,745,825 72,674,730 76,745,825 72,674,730

76,745,825 72,674,730 76,745,825 72,674,730

34. Other Financial LiabilitiesFixed Deposits at Amortised Cost


2013 2012 2013 2012Rs. Rs. Rs. Rs.

Balance as at the beginning of the Year 2,992,508,655 2,746,820,975 – –

New Deposits 1,530,103,386 1,042,745,950 – –

Capitalisation of Interest 198,514,749 152,307,326 – –

4,721,126,790 3,941,874,251 – –

Repaid Deposits (952,897,072) (949,365,596) – –

Balance as at the end of the Year 3,768,229,719 2,992,508,655 – –

Payable within One Year 3,011,997,537 2,649,974,151 – –

Payable after One Year 756,232,182 342,534,504 – –

35. Financial InstrumentsFinancial Risk ManagementOverview

The Group has exposure to the following risks from its use of financial instruments:

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This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for

measuring and managing risk and the Group’s management of capital. Further quantitative disclosures are included throughout these

Consolidated Financial Statements.

Risk Management Framework

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework.

The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and

controls and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.

The Board of Directors oversee how management monitors compliance with the Group’s risk management policies and procedures and reviews

the adequacy of the risk management framework in relation to the risks faced by the Group. The Company’s Directors are assisted in their

oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures,

the results of which are reported to the Company’s Directors.



Credit Risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations

and arises principally from the Group’s trade and other receivables.

Treasury Bills

Singer Finance (Lanka) PLC invests not less than 7.5% of the Public Deposits in Treasury Bills to comply with the Central Bank of Sri Lanka

Direction No. 1 of 2009.

Trade and Other Receivables

The Group’s exposure to credit risk relates to sale of products on installment credit/hire purchase which is an integral part of the business

of the Group.

The Group’s exposure to credit risk on instalment credit/hire purchase contracts is influenced mainly by the individual characteristics of each

customer. The demographics of the Group’s customer base, including the default risk of the country in which customers reside, has a lesser

influence on credit risk.

Geographically, there is no concentration of credit risk. Goods are sold, subject to collateral undertakings so that in the event of non-payment,

the Group can have a secured claim. The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect

of trade and other receivables and investments. The main components of this allowance are a specific loss component that relates to individually

significant exposures and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not

yet identified. The collective loss allowance is determined, based on historical data of payment statistics for similar financial assets.

Guarantees

The Group’s policy is not to provide financial guarantees to subsidiaries.

Liquidity Risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing

liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed

conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s income. The

objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency Risk

The Group is exposed to currency risk on purchases that are denominated in a currency other than the respective functional currencies of Group

entities. The currency in which these transactions primarily are denominated is U.S. Dollars. The currency risk is limited by the short-term nature

of the period between the dates of the purchase and the settlements of the related liability.

Interest Rate Risk

The Group manages interest rate risk on borrowings by using a combination of fixed and floating interest rate.

Operational Risk

Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Group’s processes, personnel,

technology and infrastructure and from external factors other than credit, market and liquidity risks such as those arising from legal and

regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all Group’s operations.

The Group’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Group’s reputation

with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.



The primary responsibility for the development and implementation of controls to address operational risk is assigned to Senior Management

within each business unit. This responsibility is supported by the development of overall Group standards for the management of operational risk

in the following areas:

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Compliance with Group standards is supported by a programme of periodic reviews undertaken by internal audit. The results of internal audit

reviews are discussed with the management of the business unit to which they relate, senior management of the Group and the Board of

Directors.

Credit RiskExposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

Carrying Amount - Group Carrying Amount - Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Trade and other Receivables 15,187,265,761 13,400,443,835 7,913,723,189 6,624,500,371

15,187,265,761 13,400,443,835 7,913,723,189 6,624,500,371

The Maximum exposure to credit risk for receivables at the reporting date by type of counterparty was:

Carrying Amount - Group Carrying Amount - Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Retail Customers 4,734,890,665 4,003,621,370 4,684,076,474 3,951,020,515

Wholesale Customers 1,481,220,326 1,187,521,512 1,481,220,327 1,187,521,512

Others 8,971,154,770 8,209,300,953 1,748,426,388 1,485,958,344

Total 15,187,265,761 13,400,443,835 7,913,723,189 6,624,500,371

Impairment losses

The aging of receivables at the reporting date was:

Group Gross2013

Impairment2013

Gross2012

Impairment2012

Rs. Rs. Rs. Rs.

Not past due 11,645,550,669 (2,027,610) 9,713,974,108 –

Past due 0 - 30 Days 1,426,626,291 (2,002,575) 2,246,507,162 (16,700,821)

Past due 31 - 120 Days 1,870,819,416 (31,016,373) 1,364,062,294 (9,399,209)

Past due more than 120 Days 788,428,125 (509,112,182) 420,233,220 (318,232,919)

15,731,424,501 (544,158,740) 13,744,776,784 (344,332,949)

Company Gross2013

Impairment2013

Gross2012

Impairment2012

Rs. Rs. Rs. Rs.

Not past due 7,777,599,386 – 5,766,660,970 –

Past due 0 - 30 Days 128,303,504 – 848,487,000 –

Past due 31 - 120 Days 15,640,598 (7,820,299) 16,891,000 (7,538,599)

Past due more than 120 Days 373,182,428 (373,182,428) 280,035,000 (280,035,000)

8,294,725,916 (381,002,727) 6,912,073,970 (287,573,599)



The movement in the allowance for impairment in respect of receivables during the year was as follows:

Group Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Balance at the beginning of the Year 344,332,949 272,017,036 287,573,599 228,279,656

Impairment Loss Recognised 284,988,961 110,907,246 114,677,161 77,097,730

Amounts Written-off (85,163,170) (38,591,333) (21,248,034) (17,803,787)

Balance at the end of the Year 544,158,740 (344,332,949) 381,002,727 287,573,599

Liquidity Risk

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting

agreements:

Group

Carrying Contractual 6 months 6 - 12 1-2 2-5 More than

31st December 2013Amount

Rs. Cash Flows

Rs. or Less

Rs. Months

Rs. Years

Rs.Years

Rs. 5 Years

Rs.

Non-Derivative Financial Liabilities

Secured Bank Loans 496,354,524 550,428,016 361,461,750 69,961,750 119,004,517 – –

Unsecured Bank Loans 4,772,816,670 4,861,382,868 3,474,809,658 1,386,573,210 – – –

Debenture Issue 3,979,958,918 5,703,370,311 88,346,805 89,838,891 1,967,743,570 3,557,441,044 –

Commercial Papers 450,000,000 492,978,082 201,890,411 – 291,087,671 – –

Trade and Other Payables 3,386,637,680 3,386,637,680 – 3,386,637,680 – – –

Public Deposits 3,768,229,719 3,768,229,719 1,637,067,492 1,253,195,119 539,080,379 302,658,467 36,228,262

Bank Overdraft 841,102,180 841,102,180 841,102,180 – – – –

17,695,099,690 19,604,128,855 6,604,678,295 6,186,206,650 2,916,916,137 3,860,099,511 36,228,262



Rs. Cash Flows

Rs. or Less

Rs. Months

Rs. Years

Rs.Years

Rs. 5 Years

Rs.

Non-Derivative Financial Liabilities –

Secured Bank Loans 756,260,000 839,236,002 493,248,558 88,565,628 146,597,295 110,824,522 –

Unsecured Bank Loans 3,522,119,183 3,557,143,000 3,557,143,000 – – – –

Debenture Issue 1,872,000,000 2,539,238,000 280,670,000 – 221,996,000 2,036,572,000 –

Commercial Papers 2,159,509,183 2,296,278,353 1,644,768,353 105,156,000 546,354,000 – –


Public Deposits 2,992,508,655 3,233,824,258 1,695,687,065 1,138,764,001 220,618,665 178,754,527 –

Bank Overdraft 663,514,715 663,514,715 – – – – –

14,487,380,113 15,650,702,705 7,671,516,976 3,853,954,006 1,135,565,960 2,326,151,049 –

Company



Rs. Cash Flows

Rs. or Less

Rs. Months

Rs. Years

Rs.Years

Rs. 5 Years

Rs.


Unsecured Bank Loans 4,772,816,670 4,861,382,868 3,474,809,658 1,386,573,210 – – –

Debenture Issue 2,900,000,000 3,814,528,233 – – 1,789,548,780 2,024,979,453 –

Commercial Papers 450,000,000 492,978,082 201,890,411 – 291,087,671 – –


Bank Overdraft 753,318,829 753,318,829 753,318,829 – – – –

11,840,627,933 12,886,700,445 4,430,018,898 4,351,065,643 2,080,636,451 2,024,979,453 –



31st December 2012

Carrying Contractual 6 months 6 - 12 1-2 2-5 More than Amount

Rs. Cash Flows

Rs. or Less

Rs. Months

Rs. Years

Rs.Years

Rs. 5 Years

Rs.


Unsecured Bank Loans 3,520,076,877 3,557,143,000 3,557,143,000 – – – –

Debenture Issue 1,872,000,000 2,539,238,000 280,670,000 – 221,996,000 2,036,572,000 –

Commercial Papers 2,058,234,000 2,190,496,000 1,538,986,000 105,156,000 546,354,000 – –


Bank Overdraft 631,580,202 631,580,202 – – – – –

10,343,434,547 11,180,000,670 5,376,799,000 2,366,699,468 768,350,000 2,036,572,000 –

Interest Rate RiskProfile

At the reporting date, the interest rate profile of the Group's interest-bearing financial instruments was:

Group Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

Fixed Rate Instruments

Financial Assets 7,636,411,413 11,176,313,335 4,684,076,474 3,951,020,515

Financial Liabilities (13,670,318,574) (10,518,266,769) (8,536,135,499) (7,554,468,000)

(6,033,907,161) 658,046,566 (3,852,059,025) (3,603,447,485)

Variable Rate Instruments

Financial Assets – – – –

Financial Liabilities 659,051,350 (1,315,617,592) (340,000,000) (527,423,079)

659,051,350 (1,315,617,592) (340,000,000) (527,423,079)

Fair ValuesFair Values Versus Carrying Amounts

The fair values of financial assets and liabilities, together with the carrying amounts in the Statement of Financial Position, are as follows:

Group

NoteAvailable

for SaleHeld to

MaturityLoans and

RecievablesOther Financial

LiabilitiesTotal

Carrying ValueFair

Value31st December 2013 Rs. Rs. Rs. Rs. Rs. Rs.

Investment in Equity Securities 16.1.a 17,061,300 – – – 17,061,300 17,061,300

Investment in Debentures 16.1.b – – – – – –

Loans Due from Related Parties 18 – – 69,634,631 – 69,634,631 69,634,631

Trade and Other Receivables 19 – – 15,187,265,761 – 15,187,265,761 15,187,265,761

Amounts due from Related Parties 20 – – 7,619,556 – 7,619,556 7,619,556

Cash and Cash Equivalents 21.1 – – 692,457,844 – 692,457,844 692,457,844

Investment in Treasury Bills 16.2 – 427,885,421 – – 427,885,421 427,885,421

Income Tax Receivable – – 50,963,181 – 50,963,181 50,963,181

Deposits with Banks – – 113,959,510 – 113,959,510 113,959,510

17,061,300 427,885,421 16,121,900,483 – 16,566,847,204 16,566,847,204



NoteAvailable

for SaleHeld to

MaturityLoans and


LiabilitiesTotal

Carrying ValueFair


Debentures 26.2 – – – 3,979,958,918 3,979,958,918 4,333,189,447

Bank Loans 26.3 – – – 5,269,171,194 5,269,171,194 4,908,345,017

Bank Overdraft 21.2 – – – 841,102,180 841,102,180 841,102,180

Commercial Papers 26.4 – – – 450,000,000 450,000,000 497,394,566

Trade and Other Payables 29 – – – 3,386,637,680 3,386,637,680 3,386,637,680

Dividend Payable 31 – – – 14,956,444 14,956,444 14,956,444

Amounts Due to Related Parties 33 – – – 410,310,906 410,310,906 410,310,906

Deferred Revenue 30 – – – 20,878,350 20,878,350 20,878,350

Fixed Deposits 34 – – – 756,232,182 756,232,182 756,232,182

Security Deposits – – – 651,765,090 651,765,090 651,765,090

Income Tax Payable – – – 15,638,502 15,638,502 15,638,502

– – – 15,796,651,442 15,796,651,442 15,836,450,364

NoteAvailable

for SaleHeld to

MaturityLoans and


LiabilitiesTotal

Carrying ValueFair








Investment in Treasury Bills 16.2 – 318,719,907 – – 318,719,907 318,719,907

Income Tax Receivable – – – – – –

Deposits with Banks – – 50,983,014 – 50,983,014 50,983,014

17,061,300 318,719,907 14,295,270,230 – 14,631,051,437 14,631,051,437

Debentures 26.2 – – – 1,872,000,000 1,872,000,000 1,147,658,997

Bank Loans 26.3 – – – 4,278,379,183 4,278,379,183 3,754,479,528

Bank Overdraft 21.2 – – – 663,514,715 663,514,715 663,514,715

Commercial Papers 26.4 – – – 2,159,509,183 2,159,509,183 2,452,477,208





Fixed Deposits 34 – – – 342,534,504 342,534,504 342,534,504



– – – 12,752,861,744 12,752,861,744 11,797,589,111



Company

NoteAvailable

for SaleHeld to

MaturityLoans and


LiabilitiesTotal

Carrying ValueFair



Investment in Debentures 16.1.b – 149,283,000 – – 149,283,000 149,283,000





Investment in Treasury Bills 16.2 – – – – – –

Income Tax Receivable – – 50,963,181 – 50,963,181 50,963,181

Deposits with Banks – – – – – –

17,020,000 149,283,000 8,582,201,907 – 8,748,504,907 8,748,504,907

Debentures 26.7 – – – 2,900,000,000 2,900,000,000 1,112,833,192

Bank Loans 26.8 – – – 4,772,816,670 4,772,816,670 4,772,816,670

Bank Overdraft 21.2 – – – 753,318,829 753,318,829 753,318,829

Commercial Papers 26.9 – – – 450,000,000 450,000,000 497,394,566





Fixed Deposits 34 – – – – – –


Income Tax Payable – – – – – –

– – – 12,938,538,722 12,938,538,722 11,198,766,480

NoteAvailable

for SaleHeld to

MaturityLoans and


LiabilitiesTotal

Carrying ValueFair




Loans Due from Related Parties 18 – – 1,492,053,836 – 1,492,053,836 1,492,053,836




Investment in Treasury Bills 16.2 – – – – – –

Income Tax Receivable – – – – – –

Deposits with Banks – – – – – –

17,020,000 – 8,679,906,035 – 8,696,926,035 8,696,926,035

Debentures 26.7 – – – 1,872,000,000 1,872,000,000 1,147,658,997

Bank Loans 26.8 – – – 3,520,076,877 3,520,076,877 3,520,076,877

Bank Overdraft 21.2 – – – 631,580,202 631,580,202 631,580,202

Commercial Papers 26.9 – – – 2,058,234,000 2,058,234,000 2,337,023,500





Fixed Deposits 34 – – – – – –



– – – 11,230,653,449 11,230,653,449 10,785,101,945



Capital Management

The Board’s policy is to maintain a strong capital base to maintain confidence of the investors, creditors and the market while sustaining future

development of the business capital consists to total equity. The Board of Directors monitors the return on capital as well as the level of dividends

to ordinary shareholders.

The Board of Directors seeks to maintain a balance between higher returns facilitated through a higher level of borrowings and the benefits and

security afforded by a sound capital position.

The capital structure of the Group consists of debt and equity of the Group. The capital structure of the Group is reviewed by the Board of Directors.

36. Commitments and Contingencies - Group/Company36.1 Financial Commitments

Documentary Credits effected for foreign purchases amounted to Rs. 2,261,817,907/- (2012 - Rs. 1,528,069,676/-).

36.2 Capital Commitments

There were no significant capital commitments, which have been approved or contracted for by the Company/Subsidiary as at the reporting date

except for the following:

Operating Lease commitment as at 31st December 2013 is as follows:

Within One Year - Rs. 471.2 million

Between One to Five Years - Rs. 1,399.7 million

Over Five Years - Rs. 747.3 million

36.3 Assets Pledged

Company has given a negative pledge over the Company's total assets, except immovable assets, for the following banks over the Loans and

Overdrafts having a carrying value of Rs. 5.5 billion as at the year end:

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Lease debtors and hire purchase receivable portfolio with a carrying value of Rs. 1,698.8 million had been pledged by the subsidiary Singer Finance

(Lanka) PLC against loan obtained to the value of Rs. 831.3 million from Seylan Bank, Sampath Bank PLC, Deutsche Bank and Commercial Bank.

36.4 Contingencies

(a) Guarantees given to banks and other lending institutions on behalf of Singer Industries (Ceylon) PLC and Regnis (Lanka) PLC amounts to

Rs. 75 million and Rs. 455.5 million respectively.

(b) The Company has provided bank guarantees amounting to Rs. 213.6 million to the Director General of Customs to clear imports during the

years 2008 to 2013. The bank guarantees related to alleged additional duty on imports claimed by the Customs and is being contested by

the Company in Courts.

The Court of Appeal made order that the Director General of Customs continue with the investigations. The Company being aggrieved by the

decision of the Court of Appeal has filed an appeal which is pending before the Supreme Court.

The Company lawyers are of the opinion that there is no basis that the Company is liable for the additional duty claimed. Hence, no provision

is made for the alleged additional duty payable in the Financial Statements.

(c) Singer Finance (Lanka) PLC has provided guarantees to its Fixed Deposit Holders amounting to Rs. 1,250,000/-, holding deposit holders Fixed

Deposits amounting to Rs. 2,016,824/- as security.



37. Events after the Reporting Period There have been no material events after the reporting date that require disclosure in the Financial Statements.

(i) Final Dividend - 2013

On the 28th February 2014, Board of Directors approved a final dividend of Rs. 2.50 per share amounting to Rs. 313 million for the year ended

31st December 2013.

The dividend will be paid on 20th March 2014.

38. Related Party Transactions38.1 Identity of Related Parties

The Company has a related party relationship with its Parent Company, its Associate Companies, Affiliate Companies and with its Directors.

38.2 Transactions with Parent Companies

(a) During the year, the Company had the following transactions with its Parent Companies:

Singer Asia Ltd. - (Intermediate Parent)

2013 2012Rs. million Rs. million

Royalty Expense 263.5 264.8

Royalty Payable Balance as at the Year End 76.7 72.7

Singer Asia Holdings B.V. (Intermediate Parent)

Royalty paid to Singer Asia Ltd. through Singer Asia Holdings B.V.

(b) Following companies are also Parent Companies of Singer (Sri Lanka) PLC and Singer Finance (Lanka) PLC, with whom no transactions were

entered into during the year:

Company Relationship

Singer (Sri Lanka) B.V. Intermediate Parent

Singer Asia Holdings N.V. Intermediate Parent

Retail Holdings N.V. Ultimate Parent

38.3 Transactions with Subsidiary Companies



Sales Financed through Singer Finance (Lanka) PLC 110.9 1,230.7

Payments to Singer (Sri Lanka) PLC on behalf of Customers 1,043.6 996.5

Short-Term Loan granted 795.0 1,693.0

Short-Term Loan recovered 2,088.0 400.0

Interest Income 97.2 138.0

Dividend Received - Gross 86.4 64.0

Cash Collections by Singer (Sri Lanka) PLC 620.4 2,643.1

Expenses Paid 191.4 155.7

Administrative Fee Charged 18.6 68.2

Collecting Commission paid through Singer (Sri Lanka) PLC 18.3 16.8

Purchase of Assets 0.7 0.9

Rent Reimbursed 12.1 13.4

Royalty Paid through Singer (Sri Lanka) PLC 18.6 16.9

Balance Receivable - Trade 0.0 4.2

Balance Receivable - Loan 21.2 1398.4



38.4 Transactions with Associate Companies

(a) During the year, the Company had following transactions with its Associate Companies:


Reality Lanka Ltd.

Loans Receivable 69.6 73.6

Rent Expense 4.9 4.1

(b) Following company is an Associate Company of Singer (Sri Lanka) PLC, with whom Singer (Sri Lanka) PLC or Singer Finance (Lanka) PLC had no

transactions taken place other than through Advertising Agencies during the year.

Telshan Network (Pvt) Ltd.

38.5 Transactions with Other Related Parties

Transactions with following parties have been disclosed in Note 38.6:

Relationship

Regnis (Lanka) PLC Affiliate Company

Singer Industries (Ceylon) PLC Affiliate Company

Singer Asia Sourcing Ltd. Affiliate Company

38.6 Transactions with Key Management Personnel

A number of Key Management Personnel or their related parties, hold positions in other entities that result in them having control or significant

influence over the financial or operating policies of these entities. These transactions are given below:

Name of the Company Name of Nature of 2013 2012and Relationship Director Transaction Rs. million Rs. million

Singer Industries (Ceylon) PLC (Affiliate Company) Mr. H.D.S. Amarasuriya (Chairman) Purchases 673.9 847.7

Late Dr. G.C.B. Wijeyesinghe Corporate Guarantee given 75.0 75.0

Deshabandu A.M. de S. Jayaratne Lease Rental paid 3.7 3.3

Mr. G.J. Walker Net Finance Income 0.5 3.1

Mr. H.A. Pieris Trade Credit Settled 681.4 783.0

Mr. V.G.K. Vidyaratne Purchase of Fixed Assets – 12.9

Expenses Reimbursed 9.2 –

Balance Payable 116.9

Regnis (Lanka) PLC (Affiliate Company) Mr. H.D.S. Amarasuriya (Chairman) Purchases 2,007.5 2,030.5

Late Dr. G.C.B. Wijeyesinghe Corporate Guarantee given 455.5 455.5

Dr. S. Kelegama Interest Income 3.3 9.6

Mr. G.J. Walker Non-Trade Settlement 55.0 45.0

Mr. H.A. Pieris Trade Credit Settled 2,182.6 2,318.1

Mr. V.G.K. Vidyaratne Purchases of Fixed Asset 0.4 0.2

Sales taxes 286.8 290.1

Loans Granted 80.0 60.0

Loans Recovered 80.00 60.0

Expenses Incurred 44.7 47.0

Balance Payable 167.2 48.9



Name of the Company Name of Nature of 2013 2012and Relationship Director Transaction Rs. million Rs. million

Singer Finance (Lanka) PLC (Subsidiary Company)

Mr. H.D.S. Amarasuriya (Chairman) (Resigned w.e.f. 30.04.2013)

Sales financed through Singer Finance (Lanka) PLC 110.9 1,230.7

Dr. S. Kelegama (Chairman) Payments to Singer (Sri lanka) PLC on behalf of Customers 1,043.6 996.5

Mr. G.J. Walker Short-Term Loan granted 795.0 1,693.0

Mr. J.J. Hyun Short-Term Loan Settled 2,088.0 400.0

Mr. H.A. Pieris (Resigned w.e.f. 30.04.2013) Interest Income 97.2 138.0

Mr. M.P.A. Salgado (Appointed w.e.f. 30.04.2013) Dividend Received - Gross 86.4 64.0

Cash Collections by Singer (Sri Lanka) PLC 620.4 2,643.1

Expenses Paid 191.4 155.7

Administrative Fee Charged 18.6 68.2

Collecting Commission paid through Singer (Sri Lanka) PLC 18.3 16.8

Purchase of Assets 0.7 0.9

Rent Reimbursed 12.1 13.4

Royalty paid through Singer (Sri Lanka) PLC 18.6 16.9

Balance Receivable - Trade – 4.2

Balance Receivable - Loans 21.2 1,398.4

National Development Bank PLC Mr. H.D.S. Amarasuriya (Resigned w.e.f. 30.11.2013) Borrowed Funds 590.0 290.0

Interest Expense 8.0 34.0

Issue of Debentures 0 18.6

Debenture Interest – 0.0

Singer Asia Sourcing Ltd. (Affiliate Company) Mr. G.J. Walker Balance Receivable/(Payable) 7.6 7.4

Singer Asia Ltd. (Intermediate Parent Company) Mr P.J. O’ Donnell Royalty Expense 263.5 264.8

Mr. G.J. Walker Royalty Payable 76.7 72.7

Mr H.A. Pieris

Reality Lanka Ltd. (Associate Company) Mr. H.D.S. Amarasuriya (Chairman) Loan Receivable 69.6 73.6

Mr. G.J. Walker

Mr. H.A. Pieris Rent Charge 4.9 4.1

Mr. V.G.K. Vidyaratne – –

Regnis Appliances (Pvt) Ltd. Mr. H.D.S. Amarasuriya (Chairman) Purchases 852.1 759.1

Mr. H.A. Pieris Sales Taxes 147.3 123.1

Mr. V.G.K. Vidyaratne Settlements 810.3 1043.1

Mr. A.N. Majeed (Resigned w.e.f. 18.06.2013) Expenses Paid 2.0 1.6

Finance Charges 2.9 6.8

Loan Granted 100.0 –

Loan Recovered 120.0 80.0

Non-Trade Settlements 5.4 9.0

Loan Receivable – 20.0

Balance Payable 62.1 127.5

Fintravels Ltd. Late Dr. G.C.B. Wijeyesinghe Business Transactions 7.7 9.5



38.7 Transactions with Key Management Personnel

(a) Key Management Personnel includes members of the Board of Directors of the Company, its Subsidiary and Parent. Transaction with Key

Management Personnel, their close family members and parties/entities in which such Key Management Personnel or their close family

members have control, joint control or significant influence can be shown as follows:


(i) Transactions with Key Management Personnel or Close Family Members

Deposit Kept by Key Management Personnel or their close family members at Singer Finance (Lanka) PLC. 71.7 85.9

Group Company

2013 2012 2013 2012Rs. Rs. Rs. Rs.

(ii) Compensation of Key Management Personnel

Short-Term Employee Benefits 52,930,607 84,878,686 43,483,187 73,466,541

Post-Employment Benefits Paid 1,755,000 – 1,755,000 –

In addition to their salaries the Company provides non-cash benefits to the Key Management Personnel and contributes to a post employment

defined benefit plan on their behalf. Directors’ emoluments are disclosed in Note 9 to the Financial Statements.

(iii) No transactions had been taken place during the year with the parties/entities in which Key Management Personnel or their close family

members have control, joint control or significant.

(b) The amounts receivable from or payable by above related parties as at 31st December 2013, are disclosed in Notes 18, 20 and 33 respectively.



A Decade in Perspective

Year ended 31st December 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 (Restated)

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

GDP Growth - % 7.2 6.0 8.3 7.0 3.5 6.0 6.8 7.7 6.2 5.4

Market Capitalisation Growth - % (13.0) (22.9) 36.1 102.0 123.0 -40.4 42.6 42.9 52.8 45.4

Trading Results

Group Turnover - Net 25,485,561 25,441,494 22,031,653 16,028,534 11,913,503 13,734,093 13,776,425 12,216,067 10,865,994 8,618,616

Profit before Tax 728,440 1,777,160 1,990,012 1,167,862 247,729 255,074 602,913 792,656 750,220 735,595

Taxation 206,375 561,451 681,181 499,042 114,830 89,616 232,698 302,356 257,304 235,237

Profit after Tax 522,066 1,215,710 1,308,831 668,819 132,899 165,458 370,215 490,300 492,916 500,358

Total Comprehensive Income for the Year 519,059 1,320,383 1,308,831 – – – – – – –

Property, Plant & Equipment 2,505,355 2,151,208 1,691,107 1,564,240 1,285,728 1,445,078 1,198,303 1,063,614 842,794 451,809

Investment in Equity Accounted Investees 53,226 52,663 46,886 23,525 24,541 25,433 412,214 366,964 264,992 285,466

Other Investments 17,061 17,061 17,061 17,061 18,490 18,490 18,490 18,490 17,837 18,395

Deferred Tax 119,022 150,284 143,450 110,226 143,053 96,481 68,642 48,363 29,717 9,088

Other Non-Current Assets 5,867,311 5,234,046 4,385,767 2,687,281 2,205,263 2,455,481 2,145,427 1,777,522 1,267,125 813,579

Total Non-Current Assets 8,561,974 7,605,262 6,284,271 4,402,333 3,677,075 4,040,963 3,843,076 3,274,953 2,422,465 1,578,337

Current Assets 16,036,223 13,795,274 11,164,888 8,477,132 7,176,378 8,612,254 8,219,439 7,477,565 5,699,334 4,508,080

Current Liabilities 13,063,536 12,849,830 10,043,948 6,602,195 6,392,896 7,668,414 5,853,413 4,555,752 3,390,742 2,674,872

Net Current Assets 2,972,687 945,444 1,120,940 1,874,937 783,482 943,840 2,366,026 2,921,813 2,308,592 1,833,208

TOTAL ASSETS LESS CURRENT

LIABILITIES 11,534,661 8,550,706 7,405,211 6,277,270 4,460,557 4,984,803 6,209,102 6,196,766 4,731,057 3,411,545

Security Deposit 651,765 576,648 487,449 403,894 359,516 334,837 301,558 270,623 235,391 201,889

Loans Re-payable after One Year 4,337,116 1,633,823 1,110,385 1,287,291 763,936 1,444,165 2,350,644 2,826,637 1,946,780 1,331,823

Provision for Gratuity 320,033 270,539 204,787 181,876 158,546 148,418 126,889 109,623 86,562 71,362

Public Deposits 756,232 342,535 503,142 195,995 150,001 81,077 443,444 235,006 96,048 –

Deferred Tax Liability 109,540 113,926 95,805 99,339 – 22,707 17,987 4,808 – –

NET ASSETS 5,359,975 5,613,235 5,003,643 4,108,876 3,013,799 2,953,599 2,968,580 2,750,069 2,366,276 1,806,471

Share Capital and Reserves

Stated Capital 626,048 626,048 626,048 626,048 626,048 626,048 626,048 626,048 500,838 400,671

Capital Reserves 762,034 773,312 655,454 664,542 412,127 407,098 233,598 233,335 208,895 –

Statutory Reserves 128,447 78,425 44,408 10,748 – – – – – –

Revenue Reserves 3,447,544 3,778,395 3,421,739 2,583,363 1,975,624 1,920,453 2,108,933 1,895,495 1,656,543 1,405,800

Shareholders’ Funds 4,964,073 5,256,181 4,747,648 3,884,701 3,013,799 2,953,599 2,968,579 2,754,878 2,366,276 1,806,471

Non-Controlling Interest 395,902 357,054 255,995 224,174 – – – – – –

Total Equity 5,359,975 5,613,235 5,003,643 4,108,876 3,013,799 2,953,599 2,968,580 2,750,069 2,366,276 1,806,471

Ratio and Statistics

Profitability

Earning per Share - Rs. 3.69 9.26 10.11 5.34 1.06 1.32 2.96 3.92 3.94 4.00

Net Assets per Share - Rs. 39.65 41.98 37.91 31.03 24.07 23.59 23.71 22 18.9 14.43

Return on Average Net Assets - % 9.5 22.9 29.3 18.8 4.4 5.6 12.9 19.1 23.6 31.7

Dividends

Amount - Rs. ’000 313,024 751,258 939,072 281,722 – 250,419 125,210 156,512 125,210 100,168

Per Share - Rs. 2.50 6.00 7.50 4.50 – 4.00 2.00 2.50 2.50 2.50

Cover 0.96 1.37 1.2 1.5 – 1.8 1.7 2.7 3.0 4.0

Others

Market Price per Share - Rs. 89.00 102.30 132.70 195.00 76.50 32.00 68.00 74.30 63.50 70.50

Price Earnings Ratio 36.9 12.5 14.3 18.3 36.1 12.1 11.5 9.5 8.1 5.7

Annual Sales Growth - % 0.2 15.5 37.3 34.5 -13.3 -0.3 12.8 12.4 26.1 38.4

Current Ratio 1.2 1.1 1.1 1.3 1.1 1.3 1.4 1.6 1.7 1.7

Average Annual Inflation - % 7.3 7.6 6.7 6.9 4.8 14.4 17.5 13.7 12.6 7.5

Net Income to Net Turnover - % 2.0 4.8 5.9 4.2 1.1 1.2 2.7 4.0 4.5 5.8


1. Stated Capital

31st December 2013 31st December 2012

Stated Capital (Rs.) : 626,048,050 626,048,050

No. of Ordinary Shares : 125,209,610 125,209,610

Class of Shares : Ordinary Shares

Voting Rights : One Vote per Ordinary Share

2. Stock Exchange Listing The issued ordinary shares of Singer (Sri Lanka) PLC are listed with the Colombo Stock Exchange of Sri Lanka.

3. Distribution of Shareholding - 31st December 2013 No. of Shareholders: 31st December 2013 - 2,694 (31st December 2012 - 2,792).

Resident Non-Resident Total

No. of Shares Held

No. ofShare-

holdersNo. ofShares %

No. ofShare-


No. ofShare-


1 - 1,000 1,627 420,915 0.34 21 8,252 – 1,648 429,167 0.34

1,001 - 10,000 789 2,841,996 2.27 14 53,091 0.04 803 2,895,087 2.31

10,001 - 100,000 220 6,061,807 4.84 7 226,091 0.18 227 6,287,898 5.02

100,001 - 1,000,000 14 3,558,622 2.84 – – – 14 3,558,622 2.84

Over - 1,000,001 1 4,225,986 3.38 1 107,812,850 86.11 2 112,038,836 89.49

Total 2,651 17,109,326 13.67 43 108,100,284 86.33 2,694 125,209,610 100.00

31st December 2013 31st December 2012

Categories of SharesNo. of Shares

No. of Shareholders

No. of Shares

No. ofShareholders

Individuals 10,739,171 2,524 10,936,145 2,615

Institutions 114,470,439 170 114,273,465 177

Total 125,209,610 2,694 125,209,610 2,792

4. Dividends Final Dividend 2013 - Rs. 2.50 (2012 - Rs. 6.00)

5. Market Value Per Share

2013Rs.

2012Rs.

Highest during the Year 113.00 - 24th January 138.50 - 23rd January

Lowest during the Year 80.10- 28th November 78.00 - 31st May

31st December 89.00 102.30

Share Information


6. Twenty Largest Shareholders as at 31st December 2013

Name No. of Shares %

1. Singer (Sri Lanka) BV 107,812,850 86.11

2. Bank Of Ceylon A/c Ceybank Unit Trust 4,225,986 3.38

3. Miss Ranjani Eileen Weeraratne Jayasuriya 609,782 0.49

4. Mrs. Mihiri Virani Fernando 600,000 0.48

5. Bank of Ceylon A/c Ceybank Century Growth Fund 598,068 0.48

6. Mrs. Zohra Taher Jafferjee 330,890 0.26

7. Dr. Nimal Ebenezer Herat Sanderatne 180,333 0.14

8. Mrs. Anoma Kamalika Amarasuriya 178,970 0.14

9. Sri Lanka Insurance Corporation Ltd. - General Fund 177,500 0.14

10. Sampath Bank PLC/Capital Trust Holdings (Pvt) Ltd. 143,360 0.11

11. Mrs. Kalutaravedage Jinangali Manel De Silva 131,248 0.11

12. Mr. Nalin Amita De Silva 126,326 0.10

13. Amãna Bank Ltd. 126,106 0.10

14. Jafferjee Brothers (Exports) Ltd. 125,200 0.10

15. Miss Nai Kaluge Ruvani Hemamala De Silva 118,195 0.09

16. Mrs. Enoka Kamali Wickramasinghe 112,644 0.09

17. Mrs. - Jasbinderjit Kaur Piara Singh 91,268 0.08

18. Mr. Hemaka Devapriya Senarath Amarasuriya 89,482 0.07

19. Merchant Bank of Sri Lanka Ltd./Union Investments Ltd. 88,894 0.07

20. Mr. Abeysiri Hemapala Munasinghe 83,986 0.07

115,951,088 92.61

Others 9,258,522 7.39

Total 125,209,610 100.00

2012Name No. of Shares %

1. Singer (Sri Lanka) BV 107,812,850 86.11

2. Bank of Ceylon A/c Ceybank Unit Trust 4,116,923 3.29

3. Bank of Ceylon A/c Ceybank Century Growth Fund 594,268 0.48

4. Miss Ranjani Eileen Weeraratne Jayasuriya 592,516 0.47

5. Mrs. Mihiri Virani Fernando 470,000 0.38

6. Mrs. Zohra Taher Jafferjee 330,890 0.26

7. Mrs. Anoma Kamalika Amarasuriya 178,970 0.14

8. Sri Lanka Insurance Corporation Ltd. - General Fund 177,500 0.14

9. Dr. Nimal Ebenezer Herat Sanderatne 175,626 0.14

10. Sampath Bank PLC/Capital Trust Holdings (Pvt) Ltd. 148,206 0.12

11. Mas Capital (Pvt) Ltd. 135,400 0.11

12. Mrs. Kalutaravedage Jinangali Manel De Silva 131,248 0.10

13. Mr. Nalin Amita De Silva 126,326 0.10

14. Jafferjee Brothers (Exports) Ltd. 125,200 0.10

15. Miss Nai Kaluge Ruvani Hemamala De Silva 118,246 0.09

16. Mrs. Enoka Kamali Wickramasinghe 112,644 0.09

17. Mr. Abeysiri Hemapala Munasinghe 109,548 0.09

18. Mr. Hemaka Devapriya Senarath Amarasuriya 89,482 0.08

19. Merchant Bank Of Sri Lanka Ltd./Union Investments Ltd. 88,894 0.07

20. Mrs. Malini Wijenaike 82,006 0.06

115,716,743 92.42

Others 9,492,867 7.58

Total 125,209,610 100.00

Share Information


7. Share TradingFor the year ended 31st December 2013 2012

Number of Transactions 1,457 2,757

Number of Shares Traded 950,048 1,852,436

Value of Shares Traded (Rs.) 93,339,406 189,951,959

8. Public Holdings The percentage of shares held by the public is 13.65% (2012 - 13.65%).

9. Record of Scrip IssuesYear ended 31st December Issue Basis No. of Shares Share Capital

Rs. ’000

1981 Prior to Public Issue – 927,600 9,276

1982 Public Issue – 1,391,400 23,190

1984 Bonus 1:02 1,159,500 34,785

1985 Bonus 1:03 1,159,500 46,380

1989 Bonus 1:01 4,638,000 92,760

1992 Bonus 1:04 2,319,000 115,950

1992 Rights (at Rs. 40/-) 1:08 1,449,375 130,444

1994 Bonus 1:15 2,608,875 156,533

1996 Bonus 2:09 3,478,500 191,318

1996 Rights (at Rs. 50/-) 1:09 1,855,766 209,875

1998 Bonus 3:11 5,723,868 267,114

2000 Bonus 1:15 5,342,276 320,537

2004 Bonus 1.04 8,013,415 400,671

2005 Bonus 1:04 10,016,769 500,838

2006 Bonus 1:04 12,520,961 626,048

2011 Subdivision 1 for 1 62,604,805 –

Total No. of Shares 125,209,610 626,048

10. Listed Debentures Details regarding the listed debentures are as follows:

1. 17% senior rated unsecured redeemable on 30th September 2015.

2. 14.5% senior rated listed unsecured redeemable on 30th May 2015 and 30th May 2016.

Interest rate of comparable Government Securities as at date of issue, 25th October 2012 was 11.84%.

Highest traded price, lowest traded price, last traded price as at 31st December 2013, interest yield and yield to maturity of trade are

as follows:

Highest Traded Price (Rs)

Lowest Traded Price (Rs)

Last Traded Price (Rs)

Interest Yield %

Yield to Maturity %

1. 17% senior rated unsecured redeemable Debentures 99.98 99.98 99.98 17.003 17.013

2. 14.5% senior rated listed unsecured redeemable Debentures 100 100 100 14.5 14.5

Debt/equity ratio, interest cover and quick asset ratio are given in Financial Highlights on page 05 of this Report.

Share Information


Subsidiary/Associate Companies

Principal Activity Directors


� Leasing Mr. H.D.S. Amarasuriya - Chairman (Resigned w.e.f. 30th April 2013)

Dr. S. Kelegama - Chairman

Singer - Interest 80.4% � Hire Purchasing

� Lending and Accepting Deposits Mr. H.A. Peris (Resigned w.e.f. 30.04.2013)

Mr. J.A. Setukavalar (Appointed w.e.f. 22.03.2012)

Ms. M. Tharmaratnam (Appointed w.e.f. 07.08.2012)

Mr. G.J. Walker (Alternate Director Mr. J. Mendis)

Mr. J.J. Hyun (Alternate Director Mr. S. Ramanathan)

Mr. J. Kan - Appointed w.e.f. 30.04.2013 (Alternate Mr. P.J.P. De Silva)

Mr. M.P.A. Salgado (Appointed w.e.f. 30.04.2013)

Mr. R.S. Wijeweera - Chief Executive Officer

Reality Lanka Limited � Investment on Properties Mr. H.D.S. Amarasuriya - Chairman

Singer - Interest 40% Mr. H.A. Pieris - Group Chief Executive Officer

Mr. V.G.K. Vidyaratne

Mr. G.J. Walker


Singer Plus Shops Ampara

AkkaraipattuAmparaAmpara ‘B’AralanganwilaDehiattakandiyaKalmunai ‘A’Kalmunai ‘B’PadiyatalawaPottuvilUhana

Anuradhapura

Anuradhapura ‘A’Anuradhapura ‘B’+��"&GalenbindunuwewaHorowpatanaKekirawaMedawachchiyaTambuththegama

Badulla

BadullaBandarawela ‘A’Bandarawela ‘B’GirandurukotteHali-ElaMahiyanganayaWelimada

Batticaloa

Batticaloa ‘A’Batticaloa ‘B’"��KalawanchikudiKattankudyValaichchenai

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Udahamulla - MeritUnion PlaceWard PlaceWellampitiyaWellawatta

Galle

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Gampaha

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Kalutara

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Kandy

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KundasaleNawalapitiyaPeradeniyaPilimatalawaPoojapitiyaWattegama

Kegalle

KegalleKegalle ‘B’MawanellaRambukkanaRuwanwellaWarakapola

Kurunegala

AlawwaBingiriyaKuliyapitiyaKurunegala ‘A’Kurunegala ‘B’MahoMawatagamaMelsiripuraNarammalaNikaweratiyaPolgahawelaPothuharaWariyapola

Matara

AkuressaDeniyayaDikwellaHakmanaKamburupitiyaMatara ‘A’Matara ‘B’UrubokkaWeligama

Mannar

Mannar

Matale

BakamunaDambullaGalewelaMatale

Moneragala

BibileButtalaMoneragalaSiyabalanduwaWellawaya

Nuwara Eliya

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Polonnaruwa

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Puttalam

AnamaduwaArachchikattuwa "�� Dankotuwa

PuttalamWennappuwa

Ratnapura

BalangodaEheliyagodaEmbilipitiyaKahawattaKuruwitaPelmadullaRatnapura ‘A’Ratnapura ‘B’

Trincomalee

KanthaleTrincomaleeVakarai

Vavuniya

Vavuniya

Kilinochchi

Kilinochchi

Mullativu

Mullativu

Singer HomesAnuradhapuraBadulla"��GodagamaKadawataKalutaraKegalleKotteKurunegalaMaharagamaMataraNegomboNuwara EliyaRatmalanaRatnapura

SISIL WorldAkuressaAnuradhapuraAmbalantotaAmparaAvissawellaBadullaBalangodaBandarawelaBattaramullaBorella"�� "��DambullaDiganaEheliyagodaEmbilipitiyaGalleGampahaGampolaHoranaJa-Ela��KadawathaKaduwelaKahawattaKalawanaKalutaraKatugastotaKegalleKekirawaKilinochchiKuliyapitiya

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Singer MegaDuplication RoadGampahaK-Zone - Ja-ElaKandyKandy MallKiribathgodaK-Zone - MoratuwaLiberty Plaza DigitalMaharagamaMalabeMt. LaviniaNegomboNugegodaPanaduraRajagiriyaThurstan RoadWattala

Satellite ShopsAmpara

Hingurana

Anuradhapura

EppawelaGalgamuwaGalnewaKahatagasdigiliyaKebithigollewaNochchiyagamaPolpithigamaRambewaThalawaThirappaneWillachchiya

Badulla

EttampitiyaHasalakaHettipolaKeppetipolaMeegahakivulaPassaraUdapussellawaUdudumbara

Batticaloa

Gonagolla

Colombo

HanwellaKosgamaMoragahahenaNawam MawathaPadukka

Galle

BatapolaHabaraduwaImaduwaKarandeniyaPinnaduwaPitigalaTalgaswalaUdugamaUragasmanhandiyaWandurambaYakkalamulla

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BulathkohupitiyaDeraniyagalaDippitiyaHemmatagamaKotiyakumbura

Kurunegala

DummalasuriyaGiriullaHiripitiyaIbbagamuwaPannalaRideegama

Matale

NaulaPallepolaRattotaWilgamuwa

Matara

MorawakaPitabeddaraTelijjawalaThihagoda

Moneragala

BadalkumburaThanamalwila

Nuwara Eliya

BogawantalawaGinigathhenaMaskeliyaPundaluoyaRagalaWalapane

Polonnaruwa

DiyabedumaDiyasenpuraHabaranaJayanthipuraManampitiya

Puttalam

AbanpolaKobeiganeNattandiyaNorochcholai

Ratnapura

DehiowitaDiyatalawaGodakawelaHaldemullaKalawanaKiriellaNivitigalaRakwanaYatiyantota

Trincomalee

Muttur

Vavuniya

Padaviya

Other

Katunayake Duty Free StoreApparel Solutions

Distribution NetworkAs at 31st December 2013


Singer ServiceRegional Service CentresAmparaAnuradhapura"��KandyKuliyapitiyaMataraPeliyagodaPolonnaruwaRatnapura��

Service Franchisee Agents

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"��*��!��Dasuna MotorsKitshan MotorsManjula MotorsNipuna AutomobileSahana MotorsSaman ServiceShane MotorsWijesinghe Motors Siva Motors

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AnuradhapuraAyesha ElectricalsBuddhika ElectricalsEmil ElectronicsIndunil Ref & Electricals=��"��'��#��Luxman Ref & Electrical<��+��"��Udani Electronics"��#��Derrick MotorsK��+��<��"��Janith MotorsKurunegala MotorsLahiru Motors

Nathan MotorsNeel MotorsNihal Motors Power WashRavi MotorsRoyal MotorsSamagi Motors <��+��"��Shantha MotorsTharanga MotorsThushari Service Station Wijesinghe MotorsAmbasewana Motors"��<��Ganegoda MotorsKumari Welding WorksLahiru MotorsLasantha MotorsM F Tractor Work ShopQ� �"��+��<��Normal Iron WorksPremasiri MotorsSamantha Motors

AmparaAruna ElectricalsAruna Ref & ElectricalEastern Tech Institute Hi Tech Electronics Janudha Ref & ElectricalsKesala ElectricalsMalaka ElectricalsRefco Electricals<��"��<��Telstar ElectronicsS G EnterprisesS S H MotorsSanjeewa IndustriesAira Motors"��*��Jayarathne MotorsMathews MotorsMohan MotorsMustafa MotorsRuckshan Mechanical ShopVignesh MotorsSahana Motors

RatnapuraAir Tech Engineering High Frost ��+�� '��"��Marriott Electricals Multi Tech EngineersPathirana Ref Engineering��"��'��Roshan Electronics Sanjaya ElectronoicsSenadheera Multi RefSolenta ElectronicsStar Ref ElectricalsTele Lab Tharindu Electricals��"��!��*��"��"��Mahanuwara MotorsPalpola MotorsPerera Motors & ServicePNA MotorsPSD MotorsRupasinghe MotorsSamagi Diesel EngineeringSaman MotorsSasie MotorsSena MotorsSrilal MotorsSunil Motors

Thushara MotorsRajapaksha Electricals

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Airconditioning Division

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Service Network and Fashion Academy Network


Glossary of Financial TermsAccounting Policies<��|��|��|��practices adopted by an enterprise in preparing and presenting Financial Statements.

Amortisation�� |�the initial value of an intangible asset such as goodwill, patents etc.

Available-for-SaleAll assets not in any of the three categories ��or loss and loan and receivables. It is a residual category does not mean that the entity stands ready to sell these all the time.

BorrowingsAll interest bearing liabilities.

Capital EmployedTotal assets less interest free liabilities, deferred income and provisions.

Capital Reserves'��considered not available for distribution.

Cash Equivalents=�J�� periods of three months or less.

Contingent Liabilities"�� determined by future events which may or may not occur.

Credit RatingAn evaluation of a corporate’s ability to repay its obligations or the likelihood of not defaulting, carried out by an independent rating agency.

Current Ratio"��+��"��=�� +��J��

DebtTotal liabilities, excluding deferred income.

Debt RatioTotal liabilities divided by total assets.

Deferred Taxation�� included in the Income Statement, which would ��J��future date.

Dividend Cover��divided by gross dividend. Measures the number of times dividend is covered by ��

Dividend PayoutDividend per share divided by earnings per share.

Earnings Per Share��divided by the weighted average number of ordinary shares in issue.

EquityShareholders’ funds.

Fair ValueFair value is the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm’s length transactions.

Financial InstrumentsFinancial Instrument is any contract that gives ��J��entity.

GearingProportion of borrowings to capital employed.

Gross Dividend �� |�distributed to shareholders.

Held to Maturity��J�� intention to be held to maturity.

Interest Cover��*��&��service ability.

ImpairmentThis occurs when recoverable amount of an asset is less than its carrying value.

Market CapitalisationNumber of shares in issue multiplied by the market value of a share at the reported date.

Net Assets Per ShareShareholders’ funds divided by the weighted average number of ordinary shares in issue. A basis of share valuation.

Non-Controlling Interest#J��|� directly or indirectly, to a parent.

Price Earnings RatioMarket price of a share divided by earnings per share as reported at that date.

Related Parties�� of the business.

Return on Average Net Assets Equity+��&��>��J��

Revenue ReservesReserves considered as being available for distributions and investments.

Segment"�� of similarity of operations and location.

Value Addition��J�� !��between turnover and the cost of materials and services bought in.

Working Capital"��J��;��;��operations computed as the excess of current assets over current liabilities.


Notice of Annual General Meeting

SINGER (SRI LANKA) PLC(Company Registration No. PQ 160)

NOTICE IS HEREBY GIVEN THAT THE THIRTY-NINTH ANNUAL

GENERAL MEETING OF SINGER (SRI LANKA) PLC, will be held at

the Registered Office of the Company, No. 80, Nawam Mawatha,

Colombo 02, on Thursday, 27th March 2014 at 10.00 a.m. for the

following purposes:

1. To receive, consider and adopt the Report of the Directors

and the Audited Financial Statements for the year ended

31st December 2013 with the Report of the Auditors thereon.

2. To resolve declaring that the age limit stipulated in Section 210

of the Companies Act No. 07 of 2007 shall not apply to

Deshabandu Ajit Jayaratne who has attained the retirement

age stipulated in Section 210 of the said Act and who has

attained the age of 73 years on 30th April 2013 and that his

reappointment for another one year in terms of Section 211 of

the said Act is approved and to re-elect him as a Director of the

Company in terms of the said Section 211.

3. To re-elect Dr. Saman Kelegama who retires by rotation and who

being eligible is being recommended for re-election.

4. To authorise Directors to determine contributions to Charities.

5. To reappoint Messrs KPMG, Chartered Accountants as the

Auditors of the Company for the ensuing year and to authorise

the Directors to determine their remuneration.

By Order of the Board,

(Sgd.)

A.C.M. Irzan, FCMA (UK)Secretary

Colombo

28th February 2014

Note1. The Transfer Books of the Company will be kept open.

2. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of him/her and such proxy need not be a member of the Company. A Form of Proxy is enclosed for this purpose. The completed Form of Proxy should be deposited at the Registered Office of the Company not less than 48 hours before the time fixed for the Meeting.

Singer (Sri Lanka) PLCAnnual Report 2013

Form of Proxy

SINGER (SRI LANKA) PLC(Company Registration No. PQ 160)

I / We ...................................................................................................................................................................................................................

of .............................................................................................................................................................................being a member/members of

Singer (Sri Lanka) PLC hereby appoint -

Mr. Hemaka Devapriya Senarath Amarasuriya (or failing him)

Mr. Hiran Asoka Pieris (or failing him)

Deshabandu Ajit Mahendra De Silva Jayaratne (or failing him)

Dr. Saman Kelegama (or failing him)

Mr. Gavin John Walker (or failing him)

Mr. Peter O'Donnell (or failing him)

Mr. John J Hyun (or failing him)

Mr. Vidyaratne Ganithaguruge Kulatunga Vidyaratne (or failing him)

Mr. Mahesh Hiranya Wijewardene (or failing him)

Mr. Merennege Priyath Ananda Salgado (or failing him)

Mr. Loku Narangodage Sarath Kumara Samarasinghe (or failing him)

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

..........................................................................................................................................................................................................................of

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

as my/our proxy to represent me/us on my/our behalf at the Annual General Meeting of the Company to be held on Thursday, 27th March 2014

at 10.00 a.m. at the Singer (Sri Lanka) PLC, Registered Office at No. 80, Nawam Mawatha, Colombo 02, and at any adjournment thereof and

at every poll, which may be taken in consequence thereof. I/We the undersigned hereby authorise my/our proxy to vote on my/our behalf in

accordance with the preferences indicated below:

FOR AGAINST

1. To receive, consider and adopt the Report of the Directors and the Audited Financial Statements

for the year ended 31st December 2013 with the Report of the Auditors thereon.

2. To resolve that Section 210 of the Companies Act No. 07 of 2007 shall not apply to

Deshabandu Ajit Jayaratne and to re-elect him as a Director.

3. To re-elect Dr. Saman Kelegama, who retires by rotation.

4. To authorise Directors to determine contributions to Charities.

5. To reappoint Messrs KPMG, Chartered Accountants as the Auditors of the Company for the ensuing year and

to authorise the Directors to determine their remuneration.

As witness my/our hand this ................................................................ day of .......................................................... Two Thousand and Fourteen.

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

Signature

Singer (Sri Lanka) PLCAnnual Report 2013

Instructions for Completion of Form of Proxy

� If a proxy other than the names mentioned above is preferred, delete the names printed and add the name of the proxy

preferred and initial the alteration.

� Please indicate how your proxy should vote by marking an ‘X’ in the cage provided for each resolution. If no indication is given,

or if there is, in the view of the proxyholder, any doubt (be reason of the manner in which the instructions contained in the

Proxy have been completed) as to the way in which the proxyholder should vote, the proxyholder in his/her discretion may vote

as he/she thinks fit.

� A Company/Corporation should execute the proxy under its seal in the manner authorised by its Articles of Association or

Statute creating it or under the hand of an Officer or Attorney duly authorised.

� If the Form of Proxy is signed by an Attorney, a certified copy (certified by a Notary Public) of the relative Power of Attorney

should also accompany the completed Form of Proxy, if it has not already been registered with the Company and the original

of the Power of Attorney should be produced for inspection at the meeting if required.

� Unless the completed Form of Proxy is deposited at the Registered Office of the Company at No. 80, Nawam Mawatha,

Colombo 02, Sri Lanka, not less than 48 hours before the time of the meeting the same will not be valid.

Form of Proxy

CORPORATE INFORMATION

Name of the Company Singer (Sri Lanka) PLC

Legal Form Public company with limited liability incorporated as a public company in Sri Lanka on 30th December 1974 under the Companies Ordinance and re-registered under the Companies Act No. 07 of 2007 on 13th June 2008.

Founded in 1877 as a branch of Singer Sewing Machine Company, USA. The shares of the Company are listed on the Colombo Stock Exchange.

Accounting Year: 31st December

#��*��!��No. 80, Nawam Mawatha,Colombo 2, Sri LankaTelephone: 94-11-2316316 (13 lines)Facsimile: 94-11- 2423544E-mail: [email protected]: www.singersl.com

Company Registration Number Old - PBS 802 (S.P.)New - PQ 160

� �� +��{*�� @��124008026

Bankers Commercial Bank of Ceylon PLCNations Trust Bank PLCStandard Chartered Bank PLCHatton National Bank PLCSampath Bank PLCMCB BankThe Hongkong & Shanghai Banking Corporation Ltd.Deutsche BankDFCC Vardhana Bank PLCNDB Bank PLCBank of CeylonSeylan Bank PLCPan Asia Bank PLCPeople’s Bank

Auditors KPMGChartered AccountantsNo. 32A, Sir Mohamed Macan Markar MawathaP.O. Box 186,Colombo 3

Registrars Business Intelligence Ltd.No. 8, Tickell RoadColombo 8

�� + A.C.M. Irzan FCMA (UK)

Lawyers Neelakandan & NeelakandanAttorneys-at-Law & Notaries PublicM&N Building (Level 5)No. 2, Deal PlaceColombo 3

&�� H.D.S. Amarasuriya - ChairmanG.C.B. Wijeyesinghe (Demised on 26th April 2013)��+��;�!��"��#��$%��;�+��=�Q�<��<��A.M. De S. Jayaratne - Alternate A.N. Majeed (Resigned on 18.06.2013)Dr. S. KelegamaP.J. O’Donnell - Alternate M.P.A. SalgadoG.J. Walker - Alternate M.H. WijewardeneJ. Hyun - Alternate V.G.K. Vidyaratne

Management Team H.D.S. Amarasuriya - Chairman��+��;�!��"��#��$%��V.G.K. Vidyaratne - Group Manufacturing DirectorM.H. Wijewardene - Director - Marketing & CommercialM.P.A. Salgado - Finance DirectorL.N.S.K. Samarasinghe - Director Sales - Sewing & Marketing'�<�� ;�"��#��$%��>��;�<��:��?=��@��="A.S. Paranavitane - Director - Information TechnologyS. Ramanathan - Director - LogisticsP.L.D.C. Perera - Director - Human ResourcesP.J.P. De Silva - Director - OperationsJ. Mendis - Credit DirectorH.A.P.S. Perera - Factory Director - Piliyandala FactoryK.K.L.P. Yatiwella - Group Finance ManagerR.C. De La Motte - Business Development Manager - Wholesale ChannelL.A.D.K. Perera - Head of Information TechnologyD.B. Wijesundera - Marketing Manager - White GoodsC.A. Samarasinghe - Business Development Manager - Modern Trade ChannelG.A.K. Weerasuriya - Senior Manager - InventoryA.P. Manoratne - Senior Manager - DistributionM.H.M. Fairoz - Marketing Manager - ElectronicsA.U. Karunaratne - Senior Manager - Merchandise & PromotionsT.G.S. Perera - Senior Manager - RecoveriesB.T.L. Mendis - Head of ProcurementI.A.S. Kolambage - Commercial Manager - Piliyandala FactoryC.L.T.P. Rupasinghe - Senior Manager - TreasuryM.M.C. Priyanjith - Head of Risk ManagementT.P.G.D. Guruge - Business Development Manager - Singer Asia Ltd.R.S. Singhabahu - Business Development Manager - Institutional SalesM. Mahesharatnam - Business Development Manager - Sisil Channel T.M.V. Tennekoon - Marketing Manager - Digital MediaH.V. Gomes - Senior Manager - Financial ServicesO.D. Amarathunga- Senior Manager - ServicesW.L.I.A Gunathilake - Business Development Manager - RetailK.R.L. Perera - Group Administration ManagerA.R.N.P.K. Wijesundera - Sales Manager - Agro & TransportationH.S. Perera - Senior Manager - Budget & Planning T.S. Martyn - Senior Manager - Apparel SolutionsK.D.J.M. Perera - Business Development Manager - Digital MediaN.L.D.W. Amarathunga - Operations Manager - Furniture - Piliyandala Factory

Singer (Sri Lanka) PLC80, Nawam Mawatha, Colombo 02, Sri Lanka.Telephone: +94112316316 Fax No: +94112423544E-Mail: [email protected]

Furnishing Results - CSE

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Transcript of Furnishing Results - CSE