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ACL Cables PLC Annual Report 2010/11

Our Vi si on
To be the preferred brand of electric cables in the region, whilst strengthening the
dominant position in Sri Lanka.
Our Mi ssi on
To expand our range of products and services in the elds of electrication.
To be the most competitive in chosen global markets and to achieve continuous
growth.
To create an environment that will inculcate a feeling of ownership in our people
and their families.
To create a company that will be in the forefront of technology and win the
admiration of our customers, suppliers, shareholders and the community.
ACL Cables PLC Annual Report 2010/11
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We strive to do our best for our stakeholders in the
following ways;
Our Customers
We reach out to our customers and give them a fair
deal.
We build enduring customer relationships without
trying to maximize short term prots.
We always make it easier for customers to do
business with us.
We communicate regularly with our customers.
We never forget to say thank you.
Our People
We respect each other as individuals and motivate
our people to work as a team.
We provide opportunities for personal and
professional development.
We recognize and reward individual initiative and
performance of our people.
We inculcate family culture and togetherness.
Our Suppliers
We treat our suppliers as valuable business partners
and maintain a mutually benecial relationship.
Our Shareholders
We ensure superior returns to our shareholders
through sustained growth of protability.
Our Community
We carry out our activities in an environment-
friendly manner, contributing towards a safer and
healthier community.
We maintain ethical standards.
Our Val ues
Contents
3 Group Financial Highlights
5 Chairmans Review
9 Managing Directors Review
12 Board of Directors
16 Senior Management Team
18 Group Structure
20 Risk Management
23 Corporate Governance
30 Corporate Social Responsibility
35 Awards
Financial Information
38 Report of the Directors
41 Directors Responsibility for Financial Reporting
42 Audit Committee Report
44 Remuneration Committee Report
45 Independent Auditors Report
46 Income Statement
47 Balance Sheet
48 Statement of Changes in Equity
49 Cash Flow Statement
50 Notes to the Financial Statements
82 Information to Shareholders
84 Five Year Summary - Group
85 Glossary of Financial Terms
87 Milestones
89 Notice of Meeting
90 Notes
91 Form of Proxy
IBC Corporate Information
ACL Cables PLC Annual Report 2010/11
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Group Revenue
32% growt h
Rs. 9. 6bn
Group Prof i t
420% growt h
Rs. 286. 7mn
ACL Cables PLC Annual Report 2010/11
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Group Fi nanci al Hi ghl i ghts
2011 2010
Rs. Mn Rs. Mn
Operations
Turnover 9,569.8 7,242.9
Gross Profit 1,289.0 1,144.7
Finance Cost 226.8 270.1
Profit Before Tax 449.7 196.3
Profit After Tax 286.7 55.1
Total Equity 4,517.1 4,168.8
Key Financial Indicators
Gross Profit Margin 13.5% 15.8%
Net Profit Margin Before Tax 4.7% 2.7%
Interest Cover (Times) 2.98 1.70
Return on Equity 6.3% 1.3%
Current Ratio (Times) 1.7 1.8
07 08 09 10 11
0
20
60
40
80
Rs.
Net Assets per Share
as at 31st March
07 08 09 10 11
0
40
120
80
160
Rs.
Market Value per Share
as at 31st March
07 08 09 10 11
0
400
1,200
800
1,600
Rs. Mn.
Net Prot before Tax
for the year ended 31st March
07 08 09 10 11
0
2,000
6,000
4,000
8,000
10,000
Rs. Mn.
Revenue
for the year ended 31st March
ACL Cables PLC Annual Report 2010/11
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ACL Cables PLC Annual Report 2010/11
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Chai rman's Revi ew
On behalf of the Board of Directors I am happy to welcome you to the Forty-Ninth Annual General
Meeting of ACL Cables PLC and to present the annual report and audited nancial statements for
the year ended 31st March 2011.
Bright Prospects for Local Economy
The Sri Lankan economy recorded a growth of 8% as per the Central Bank of Sri Lanka (CBSL)s
2010 annual report. This is the second highest growth rate recorded since Sri Lanka gained
independence in 1948. The year 2010 was the rst full year of peace for the country after a 30-
year protracted war.
Undoubtedly, greater economic activity is visible island-wide. Post-war growth and development
activities in the form of new highways, repairs to existing roads, port expansions, improvement
of the power sector and expansion of transmission and distribution of power, will serve to
strengthen the countrys infrastructure, which has been neglected over the past few decades.
Commendable Group Performance
Against this vibrant economic backdrop, the turnover of the Group increased to Rs. 9.6 Bn from
Rs. 7.2 Bn in the previous year, an increase of 32%. The Prot before Tax of the Group increased to
Rs. 450 Mn from Rs. 196 Mn in the previous year, marking an increase of 129%.
Meanwhile, the nance costs of the Group declined slightly in the year under review to Rs. 226
million from Rs. 270 million in 2009/10, largely due to reduced borrowing costs. I am happy to
report that all our subsidiary companies contributed substantially to this exceptional nancial
performance.
The Group has been successful in maintaining its dominant position in the industry despite sti
competition. In a positive development, our new head oce building at No. 60 Rodney Street,
Colombo 08 was completed after the year under review and has been occupied by our sta to
commence operations in June 2011. However, since the head oce was occupied after the balance
sheet date, it has not been capitalised as yet in the nancial statements.
Furthermore, the Company purchased land in extent approximately 2 and 2/3 Acres adjoining the
Piliyandala factory for a sum of Rs. 55 Mn in July 2010. This land has been earmarked for future
expansions of the Group.
Agai nst thi s vi brant economi c backdrop, the turnover
of the Group i ncreased to Rs. 9. 6 Bn from Rs. 7. 2 Bn i n
the previ ous year, an i ncrease of 32%.
ACL Cables PLC Annual Report 2010/11
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Chai rman's Revi ew
Challenges Facing the Industry
The industry is at the cross-roads today as it is unable to derive much benet from the rapid
infrastructure reconstruction in the country. Currently, all infrastructure projects, whether funded
by foreign grants or on a loan basis, have been negotiated in such a manner that no local material
or local labour is used at any stage of construction. This is a tremendous blow to the development
of the local manufacturing industry and will only serve to stunt the growth of the industry.
Even in the case of a local manufacturer selected as a supplier to an infrastructure project, the
procedure that the selected manufacturer has to undergo to obtain facilities is equivalent to those
of a foreign supplier.
For most Ceylon Electricity Board (CEB) projects, the qualication criteria calls for overseas
experience in excess of 15 years for the supply of cables and conductors. This, we believe, is an
important parameter when evaluating an unknown overseas supplier, especially from countries
that are notorious for poor quality material.
However, we are hopeful that in the near future the CEB will relax this requirement for reputed
local suppliers who can provide adequate proof of their expertise and know-how.
ACL has already supplied many projects with high tension conductors and has completed more
than 11 projects in Australia. But the contractors bidding for CEB tenders are hesitant to include
ACL conductors, fearing that a local company would not be acceptable to the CEB. Given a chance
on a level playing eld, local companies can make an immense contribution to the national GDP.
Appointments
I am delighted to inform you that Mr. Hemaka Amarasuriya has accepted our invitation to join
the Board of ACL Cables PLC as a Non-Executive Director with eect from 2nd August 2010.
Considered one of the leading lights of the private sector, we look forward to a prosperous future
in consultation with his erudite opinions in steering the Company ahead.
Unfortunately, we have to bid goodbye to Mr. Hemantha Perera, who resigned from the Board with
eect from 31st March 2011, and we wish to thank him for his valuable contribution during his
tenure of service.
The Profi t before Tax of the Group i ncreased to
Rs. 434 Mn from Rs. 196 Mn i n the previ ous year,
marki ng an i ncrease of 121%.
ACL Cables PLC Annual Report 2010/11
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In Appreciation
I wish to take this opportunity to thank all our foreign and local customers for their support.
My gratitude also goes to our entire sta for their dedication and to our shareholders for the
condence they continue to place in us. The ACL Group is also extremely grateful to the CEB for
their continued patronage and we hope our bonds would strengthen further over the years.
ACL Cables PLC looks forward to deriving maximum benet from the evolving economic climate
and is condent that all Group companies will consolidate their nancial and operational
performance in the upcoming nancial year.
Mr. U. G. Madanayake
Chairman
25th August 2011
ACL Cables PLC Annual Report 2010/11
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ACL Cables PLC Annual Report 2010/11
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Managi ng Di rector's Revi ew
I am pleased to report that ACL Cables PLC performed exceedingly well to record a turnover of
Rs. 5.18 Bn in 2010/11 as compared to Rs. 3.49 Bn in 2009/10. The Companys Prots before tax
recorded Rs. 33.9 Mn in 2010/11 after registering a loss of Rs. 146.9 Mn in the previous year.
Meanwhile, ACL Cables PLC Groups Prots before tax moved signicantly upwards from Rs. 196
Mn previously to Rs. 449.7 Mn in the period under review.
As a result of this commendable performance by the Group companies, the ACL Group market
share increased signicantly. This performance was achieved despite a sharp increase in the cost
of raw materials in our manufacturing process, particularly, copper and aluminum. Prices for
copper averaged USD 8,140 per Tonne in the year under review in contrast to an average price of
USD 6,101 per Tonne in 2009/10.
Factors Supporting Our Growth
One of the most favourable developments during the year to have directly contributed to our
performance has been the expansion of rural electrication eorts by the Ceylon Electricity Board
(CEB). As one of our main clients, this increase constituted an upsurge in demand for our products,
thereby contributing to our improved turnover. Accelerated infrastructural and economic
development in the north and east will boost the economy further and in turn benet ACL. Most of
these newly developed regions will witness enhanced CEB activity and have a trickle-down eect
on our Companys operations in the future. As a result of this urry of development, we expect
households and institutions in the north and east to become our retail clients over time.
The stellar performance by the ACL Group has been meticulously mapped out and some of the
salient reasons for this performance are a focus on production eciency, which leveraged on
improved debtor control, inventory control and advanced production best practices. Furthermore,
the decrease in interest rates in the market had a far reaching impact on our Group performance.
The year 2010/11 was memorable for the Company as we were successful in achieving our
objective to increase ACL brand presence in the market whilst also positioning it as a preferred
brand. As a result of these strategic sales and marketing eorts, the brand increased its market
share during the year, consequently strengthening its dominant status in the industry. The ACL
ACL Cabl es PLC performed exceedi ngl y wel l to
record a turnover of Rs. 5. 18 Bn i n 2011 as compared
to Rs. 3. 49 Bn i n 2010. The Company's Profi ts before
Tax recorded Rs. 33. 9 Mn i n 2011 after regi steri ng a
l oss of Rs. 146. 8 Mn i n the previ ous year.
ACL Cables PLC Annual Report 2010/11
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Managi ng Di rector's Revi ew
Group was able to establish a distinct identity for its portfolio of brands as a direct result of being
one of two companies to oer re rated cables for all building wires, thereby oering unmatched
safety and protection.
ACL continued its pursuit of new markets throughout the year under review, which contributed
to our enhanced business volumes. The favourable economic climate prevalent in the country
presently is stimulating greater construction activity, which will have benecial consequences in
the form of enhanced sales of our products.
Product Innovation
The Company invested in launching new products and applied innovation throughout 2010/11,
and implemented technology improvements along with the installation of new equipment in a
concerted eort in the year under review.
ACL Cables PLC has always maintained strong ties with its consumers and pre-empted evolving
customer demands. In keeping with our customer-centric philosophy, customized products to suit
individual customer needs were introduced during the year, which further heightened the visibility
of ACL cables in the market.
Industry Challenges
While we are optimistic about future prospects for the economy, there are certain macro economic
challenges that could impact the industry adversely. The future course of government policies,
taxes, legislation, etc., could impact the business in the months and years ahead. The government
policy regarding the granting of duty-free facilities to the CEB for import of cables for foreign
contractors has the potential to become a serious threat to the local industry, as this deters our
competitiveness as foreign contractors oer lower prices. This policy is skewing the level playing
eld unfavourably and we sincerely hope that authorities take note of this status quo.
The government should instead support the local industry in terms of including local materials and
labour on contract projects. In this manner, even if contracts are awarded to foreign contractors,
ACL Cables PLC has always maintained strong ties
with its consumers and pre-empted evolving customer
demands. In keeping with our customer centric
philosophy, customized products to suit individual
customer needs were introduced during the year.
ACL Cables PLC Annual Report 2010/11
11
conditions should be such that a certain percentage of material and labour should be sourced
from within the local industry.
Future Outlook
The copper rod manufacturing plant becoming operational during the 2011/12 nancial year
heightens the possibility of improved future operational margins. This backward integration will
ensure that quality is controlled along the supply chain at ACL.
Further, the reduction in corporate tax rates by 7% to 28% is a positive move by the government
and will serve to enhance our growth potential in the near future.
Looking ahead, we plan to drive down costs and place an emphasis on deriving cost eciencies
in our operations. Our endeavor will be to improve production eciencies through innovative
methodology. We are upbeat about the future as any improvement in the contribution margin will
directly increase prots for the Group.
Moreover, we have our sights trained on new export markets, with plans to penetrate markets
in which we already have a presence, which are Australia, New Zealand and East Africa.
The governments renewed commitment to infrastructure development will have positive
repercussions for our business, as we possess the capacity to supply large volumes of wiring for
road lighting, etc. The thriving tourism industry and the slew of upcoming hotel projects will fuel
our business growth further.

Acknowledgements
I would like to express my appreciation to the Board of Directors for their sound guidance and
encouragement. Further, our employees have contributed signicantly to the Groups exceptional
performance during the year. In conclusion, I would also like to thank the CEB and our other loyal
customers for their continued patronage.
The future prospects for the ACL Cables PLC Group are bright and we plan to leverage on all the
strategic initiatives undertaken during this nancial year to achieve an even more prosperous
2011/12.
Mr. Suren Madanayake
Managing Director
25th August 2011
ACL Cables PLC Annual Report 2010/11
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Board of Di rectors
Mr. U. G. Madanayake
Chairman
Mr. U.G. Madanayake had his early education at
Ananda College, Colombo. He graduated from
the University of Cambridge - England in 1958,
and had his M.A. (Cantab) conferred on him in
1962. He is a Barrister at-law (Lincolns Inn) and an
Attorney-at-law of the Supreme Court of Sri Lanka.
He started his working life managing family-owned
plantations until most of the lands were taken over
by the State under the Land Reform Law of 1972.
He still continues to have an active interest in
agriculture.
He joined the Board of Associated Motorways Ltd,
and subsequently became the Deputy Chairman of
the Company. He became a Director of ACL Cables PLC (then Associated Cables Ltd.) in January
1963, its Managing Director in July 1978 and Chairman cum Managing Director in May 1990.
He relinquished his duties as Managing Director in September 2005 after appointing Mr. Suren
Madanayake as Managing Director. With the acquisition of Kelani Cables PLC. by the ACL Group in
October 1999, he was appointed Chairman of Kelani Cables PLC.
Mr. Madanayake is also the Chairman of Fab Foods (Pvt.) Ltd., Ceylon Tapioca Ltd, ACL Plastics
PLC., ACL Metals & Alloys (Pvt.) Ltd., ACL Polymers (Pvt.) Ltd. and ACL-Kelani Magnet Wire (Pvt.)
Ltd. He is a Director of Ceylon Bulbs & Electricals Limited. He has over 40 years experience in the
cable Industry.
Mr. Suren Madanayake
Managing Director
Mr. Suren Madanayake had his education at Royal
College, Colombo and qualied as a Mechanical
Engineer from the University of Texas at Austin,
USA. He was appointed to the Board of ACL Cables
PLC., in June 1991 and appointed as Managing
Director in September 2005. When Kelani Cables
PLC was acquired in October 1999, he was
appointed as Managing Director of KCL and Lanka
Olex Cables (Private) Ltd. which is the holding
Company of KCL. In 2003 he was appointed as
Deputy Chairman of KCL.
He also serves as the Managing Director of Ceylon
Bulbs and Electricals Ltd., ACL Plastics PLC and
Director of ACL Metals & Alloys (Pvt.) Ltd., ACL Polymers (Pvt.) Ltd., ACL-Kelani Magnet Wire
(Pvt.) Ltd., Fab Foods (Pvt.) Ltd. and Ceylon Tapioca Limited. He also serves as Chairman of CCC
Foundation of Sri Lanka, which is an approved charity.
ACL Cables PLC Annual Report 2010/11
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Mrs. N. C. Madanayake
Director
Mrs. N.C. Madanayake was appointed to the Board
of ACL Cables PLC in July 1980.
She is also a Director of Kelani Cables PLC, ACL
Plastics PLC, Ceylon Bulbs and Electricals Ltd. and
Ceylon Tapioca Limited. Mrs. Madanayake is a
pioneering Director of Fab Foods (Pvt.) Ltd. and
now serves as Managing Director of the Company.
Mr. Hemantha Perera
Director
Mr. Hemantha Perera had his education at Royal
College, Colombo and began his career in 1984
working for John Keells Holdings Limited, as a
Trainee Executive in the Tea Department. He later
moved to Keells Aquariams, where he went on to
become Director, Sales and Marketing. Mr. Perera
was appointed to the Board of Directors of ACL
Cables PLC. and ACL-Kelani Magnet Wire (Private)
Limited in 2001 and was appointed as Managing
Director of Kelani Cables PLC. in 2003. Mr. Perera
holds a Masters Degree in Business Administration
and is a member of the Sri Lanka Institute of
Directors.
Dr. S. K. Madanayake
Director
Dr. S. K. Madanayake had his early education at Trinity College, Kandy and Royal College,
Colombo. He qualied himself as a Doctor of Medicine at Liverpool University in the U.K., after
which he practiced as a physician in Sri Lanka and in England. He was appointed to the Board of
Directors of ACL Cables PLC (then Associated Cables Ltd.) in May 1980, Lanka Olex Cables (Pvt.)
Ltd. in October 1999 and was a Director of ACL Plastics PLC., from its inception in 1991. Dr.
Madanayake retired from practicing medicine and lives in Sri Lanka permanently.
ACL Cables PLC Annual Report 2010/11
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Board of Di rectors
Mr. Ajit Jayaratne
Director
Mr. Ajit M. de S. Jayaratne had his education
at Royal College, Colombo. He holds a B.Sc.
(Economics) Degree from Southampton University
and is a fellow member of the Institute of
Chartered Accountants, England & Wales and also
a fellow member of the Institute of Chartered
Accountants, Sri Lanka. Mr. Jayaratne was the
Chairman of Forbes & Walker Limited, The
Colombo Stock Exchange, The Ceylon Chamber
of Commerce and The Finance Commission. Mr.
Jayaratne also served as the High Commissioner of
Sri Lanka in Singapore sometime ago. He is now a
Director of Singer Sri Lanka Ltd, Singer Industries
Ltd., Colombo Fort Land & Building Co. Ltd.,
Colonial Motors Ltd., Overseas Realty (Ceylon) Ltd. and C.W. Mackie & Co. Ltd. Mr. Jayaratne was
appointed to the Board of Directors of ACL Cables PLC in November 2005.
Mr. Hemaka Amarasuriya
Director
Mr. Hemaka Amarasuriya is currently the Chairman
of the Singer Group of Companies in Sri Lanka
and a Senior Vice President of Retail Holdings Ltd.,
U.S.A., Singers parent company. He is a fellow
member of the Institute of Chartered Accountants
of Sri Lanka and of the Chartered Institute of
Management Accountants, U.K. He also holds a
Honorary Fellowship from the Chartered Institute
of Marketing, U.K. and a Diploma in Marketing
Strategy from the University of New York.
He is on the Directorate of other listed companies
such as NDB Bank PLC, C.W. Mackie PLC and non-
listed companies such as Bata Shoe Co. Ceylon,
Equill Ltd, TNL Radio Network (Pvt) Limited, Amariya Resorts (Pvt) Ltd., Micro Cars (Pvt) Ltd. &
NDB Capital Bangladesh. Since holding the Chair of the Singer Group in Sri Lanka, he built this
institution to regularly be among LMDs top 20 Corporates in Sri Lanka for an unbroken sequence
of 12 years, while earning the status for Singer as the Most Powerful Brand in Sri Lanka and the
vote as the Most Popular Brand for 5 consecutive years by Peoples Choice.
He was recognized by the Asia Retails Congress 2007 with the Retail Leadership Award for his
contribution to retailing in Asia and by the Chartered Institute of Marketing U.K. as a Visionary
Business Leader for his invaluable contribution to the Marketing Profession in initiating
revolutionary changes in the Consumer Market.
ACL Cables PLC Annual Report 2010/11
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Mr. Daya Wahalatantiri
Director
Mr. Daya Wahalatantiri had his early education at
Holy Cross College, Kalutara and Royal College,
Colombo. In 1990, he obtained his Masters in
Business Administration from the University of Sri
Jayawardenapura. He is a Graduate in Chemistry
(Special) from the University of Ceylon, Peradeniya.
Having gained sucient exposure in marketing
of industrial products to institutional customers,
he joined ACL Cables PLC as its rst Marketing
Manager in 1982. He was appointed to the Board of
Directors of ACL Cables PLC in November 2005.
Mr. Rajiv Casie Chitty
Director
Mr. Rajiv Casie Chitty had his education at Royal
College, Colombo. He became a fellow of the
Association of Chartered Certied Accountants
(ACCA), UK and Associate Member of the Chartered
Institute of Management Accountants (CIMA),
UK and a Chartered Financial Analyst, USA. He
obtained his Masters in Economics from the
University of Colombo and won the Janashakthi
Gold at the 2006 CIMA Pinnacle Awards. Mr. Casie
Chitty was appointed a Director of ACL Cables PLC
in November 2005. He is currently an Executive
Director of Ceylon Ceramics PLC, Managing
Director / CEO of CT Plantations Limited & Horana
Plantations PLC and also the Managing Director of
Uni Dil Packaging Limited.
His association with local industry goes back to 1992 from which time he has chaired the Regional
Industry Service Committee Southern Province of the Ministry of Industrial Development,
responsible for developing Industrial Estates in the Southern Province outside of the Board of
Investment, Sri Lanka.
He is a former Chairman of the Employers Federation of Ceylon and was previously responsible
for the Human Resource Development Function of Singer Asia and for the procurement function
of Singer Global and also chaired the Singer Worldwide Business Council which is the policy
implementation body of one of the oldest multinationals.
ACL Cables PLC Annual Report 2010/11
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Seni or Management Team
Left to Right
Manohara De Zoysa - Group Logistics Manager, A. G. U. K. Abeynayake - Electrical Engineer,
D. C. Weerasinghe - Production Manager-Copper Cable Factory, Chrishanthi Weerawarna
- Deputy General Manager (HR & Technical Services), G. B. Karunaratne - Assistant Production
Manager - Dealer Range Factory
Left to Right
Indunil Perera - Security Manager, Quintus Seimon - General Manager Operations,
Padmana Wijesundara - Quality Assurance Manager, Helen De Fonseka - Systems Manager,
Chamara Liyanage - Assistant Logistics Manager
ACL Cables PLC Annual Report 2010/11
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Left to Right
Lalith Ranatunga - Marketing Manager Institutional, Champika Coomasaru - Group Financial
Controller, Lakshman Bandaranayake - Marketing Manager Distribution, Senila Rupasinghe -
Import/Export Manager, Bandula Warnakulasooriya - General Manager Administration
Left to Right
Roshitha Amarasekera - Deputy General Manager (Production), R. Nandakumara - Mechanical
Engineer, Christie Gunathilake - Resident Manager, N. K. W. Gallage - Production Manager
- Rod Mill, Sarath Weerasinghe - Assistant Production Manager - Aluminum Cable Factory,
Shyamalee De Silva - Credit Control Manager
ACL Cables PLC Annual Report 2010/11
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Group Structure
Group Structure ACL Cables PLC ACL Plastics PLC Ceylon Bulbs &
Electricals Ltd
Registration Number PQ 102 PQ 87 PBS 352
Date of Incorporation 10.03.1962 17.07.1991 16.10.1957
Corporate Status Public Limited Company Public Limited Company Limited Company
ACL Cables PLCs Eective
Shareholding in the Company
Parent Company 65.20% 95.30%
Directors U. G. Madanayake
- Chairman
Suren Madanayake
- Managing Director
Mrs. N. C. Madanayake
- Director
Dr. S. K. Madanayake
- Director
Hemantha Perera
- Director
Ajit Jayaratne
- Director
Hemaka Amarasuriya
- Director
Daya Wahalatantiri
- Director
Rajiv Casie Chitty
- Director
U.G.Madanayake
- Chairman
Suren Madanayake
- Managing Director
Mrs. N. C. Madanayake
- Director
Dr. S. K. Madanayake
- Director
U.G.Madanayake
- Director
Suren Madanayake
- Director
Mrs. N. C. Madanayake
- Director
S. E. C. Gardiner
- Director
Principal Activity Manufacturers and
Selling of Power
Cables & Conductors,
Armoured Cables, Aerial
Bundled Cables, Control
Cables, Telephone
Cables & Auto Cables.
Manufacturing Cable
grade PVC Compound.
Trading
Total Number of Employees
as at 31st March 2011
600 44 None
ACL Cables PLC Annual Report 2010/11
19
Lanka Olex Cables
(Pvt) Ltd
Kelani Cables PLC ACL Kelani Magnet
Wire (Pvt) Ltd
ACL Polymers (Pvt)
Ltd
ACL Metals & Alloys
(Pvt) Ltd
N (PVS) 10596 PQ 117 N (PVS) 26361 N (PVS) 43085 N (PVS) 43084
22.02.1993 18.12.1972 29.06.2000 06.09.2005 05.09.2005
Private Limited
Company
Public Limited
Company
Private Limited
Company
Private Limited
Company
Private Limited
Company
100% 79.30% 93.79% 65.20% 100%
U. G. Madanayake
- Chairman
Suren Madanayake
- Managing Director
Mrs. N. C. Madanayake
- Director
Dr. S. K. Madanayake
- Director
U. G. Madanayake
- Chairman
Suren Madanayake
- Deputy Chairman
Hemantha Perera
- Managing Director
Mrs. N. C. Madanayake
- Director
Dr. C. T. S. B. Perera
- Director
Dr. L. J. R. Cabral
- Director
U. G. Madanayake
- Chairman
Suren Madanayake
- Managing Director
Hemantha Perera
- Director
Mrs. Maya Weerapura
- Director
U. G. Madanayake
- Chairman
Suren Madanayake
- Managing Director
U. G. Madanayake
- Director
Suren Madanayake
- Director
Investing Company Manufacturing
and selling of
Power Cables,
Telecommunication
Cables & Enamelled
Winding Wires
Manufacturing and
export of Enamelled
Winding Wires
Manufacturing of PVC
compounds
Manufacturing and
Selling Aluminium
rods, Alloys of
Aluminium and Other
Metals
None 407 59 14 25
ACL Cables PLC Annual Report 2010/11
20
Ri sk Management
ACL Cables PLC has given due consideration to its risk management process in order to progress
towards achievement of its goals and objectives. Risk management under the two forms of risks,
namely Financial and Business, are regularly reviewed to ensure the related risks are minimized
where the complete elimination is not possible.
Risk Exposure Company Objectives Company Initiatives
Financial Risk Management
1. Liquidity & Cash
Management
To maIntaIn IIquIdIty
position.
ThIs Is achIeved by reguIar IoIIow up
of trade debts, planning production
and utilization of short term
borrowing facilities.
Company has sumcIent assets to
oer as collateral for future funding
requirements.
ObtaInIng IundIng IacIIItIes
to adequately manage liquid
position through several nancial
institutions.
2. Interest Rate Risk To mInImIze adverse
eects of interest rate
volatility.
NegotIate and take suppIIer credIt to
mitigate the high cost and to avoid
adverse uctuations in local interest
rates.
3. Currency Risk To mInImIse exposure
to uctuations in
foreign currency rates
of foreign currency
receipts and payments.
Use export proceeds to settIe Import
payments wherever possible.
Business Risk Management
1. Credit Risk To mInImIse rIsk
associated with debtors
defaults.
Fxport saIes are done on Ietters oI
credit and advance TT remittances
as much as possible.
ObtaIn bank guarantees as coIIateraI
from local distributors.
Demarcate the areas oI operatIons
in local market and monitor the
exposure levels of distributors
regularly.
AppoInt new dIstrIbutors to reduce
the exposure.
FoIIow an assessment procedure
to ensure credit worthiness of
customers.
Company maIntaIns a
comprehensive policy to adequately
review and provide for doubtful
debts.
ACL Cables PLC Annual Report 2010/11
21
Risk Exposure Company Objectives Company Initiatives
2. Asset Risk To mInImIse Iosses
caused by machine
breakdown and
damages from re or
theft.
ObtaIn comprehensIve Insurance
covers for plant and machinery.
Carry out pIanned preventIve
maintenance programs.
3. Internal Controls To maIntaIn sound
system of internal
controls to safeguard
company assets.
Carry out contInuous InternaI audIts
by an independent rm.
4. Human Resources To reduce Iabour
turnover.
To ensure smooth ow
of operations without
interruptions.
To ensure adaptabIIIty
through training and
adopting best practices.
MaIntaIn an empIoyee evaIuatIon
scheme to reward them.
MaIntaIn heaIthy and cordIaI
relationship with employees at all
levels through joint consultative
committees.
FrovIde varIous empIoyee benets
through the Welfare Committee.
FrovIde specIc and generaI traInIng
wherever necessary.
5. Technological and
Quality related risk
To keep pace wIth
current technological
developments and
quality standards to
avoid obsolescence.
To mInImIse productIon
of stocks that do not
meet the standards.
DeveIop a Iong term pIan to
replace existing machines with
technologically advanced machines.
ObtaIn certIcatIons Irom reIevant
authorities and ensure products
comply with most of the local and
international standards.
AIready the equIpment requIred to
test the quality of products are in
place.
6. Inventory
Management Risk
To reduce stock out
situations.
To reduce the
accumulation of slow
moving stocks.
To mInImIse the Iosses
on obsolete stocks.
To mInImIse rIsk oI sub
standard material being
received.
To mInImIse Inventory
days.
FIan monthIy productIon based
on budgets and sales forecasts at
production planning meetings held
monthly.
Carry out saIes promotIons to
reduce slow moving stocks.
Adopt varIous quaIIty standards at
dierent stages to verify the quality
and ensure this until the product is
delivered.
Stocks that are not up to standard
are separated and disposed as scrap.
ContInuous stock verIcatIon
systems to identify non-moving
stocks.
ReguIarIy monItor Inventory days.
ACL Cables PLC Annual Report 2010/11
22
Risk Exposure Company Objectives Company Initiatives
7. Risk of Competition To avoId Iosses oI
market share from
imported low quality
products.
Fnsure prevaIIIng quaIIty standards
are met.
Strengthen 'ACL' brand through
various advertising and promotional
campaigns.
MaIntaIn product avaIIabIIIty In
various parts of the country.
8. Investment in Capital To reduce the rIsk oI
loss in present and
future investments.
Investments In assets are properIy
planned and made on timely basis.
Reduce the IdIe assets as Iar as
possible.
9. Information Systems To mInImIse possIbIe
risks associated
with data security,
hardware, software
and communication
systems.
Data backups are taken reguIarIy
and stored in outside locations.
MIrrorIng oI hard dIsks wIth crItIcaI
data.
Vendor agreements Ior support
services and maintenance.
ReguIar upgradIng oI vIrus scanners,
rewalls and software.
10. Environmental
Issues
To mInImIse adverse
impact of operations to
the environment.
CompIy wIth the standards set by
the relevant authorities and ensure
the compliance.
11. Legal and Regulatory
Issues
To mInImIse possIbIe
losses arising from
non-compliance
with statutory
and regulatory
requirements.
To mInImIse or take
counter measures to
reduce the impact
arising from changes to
regulatory issues.
CompIy wIth the requIrements oI
statutory and regulatory bodies.
ObtaIn advIce Irom the FmpIoyers
Federation when necessary.
Ri sk Management
ACL Cables PLC Annual Report 2010/11
23
ACL Cables PLC is committed to best practices in the area of Corporate Governance. Corporate
Governance is an internal system encompassing policies, processes and people, which serves the
needs of shareholders and other stakeholders. Good governance facilitates eective management
and control of the business, while maintaining a high level of business ethics and optimizing
the value for all stakeholders. Sound Corporate Governance is reliant on external market place
commitment and legislation plus a healthy Board culture which safeguards policies and processes.
Further, an important element of Corporate Governance is to ensure the accountability of certain
individuals in an organization through mechanisms that try to reduce or eliminate the dilemma of
principal-agent.
The Corporate Governance Report, together with the Audit Committee Report & the Directors
Remuneration Report, provides a description of the manner and extent to which ACL Cables
PLC complies with the code of Best Practice in Corporate Governance issued by the Institute of
Chartered Accountants of Sri Lanka and the Listing Rules of the Colombo Stock Exchange.
The Board of Directors
The Board is collectively responsible for the success of the Company. Its role is to provide
entrepreneurial leadership to the Company within a framework of prudent and eective controls
which enables risk to be assessed and managed. The Board sets the Companys strategic aims,
ensures that the necessary nancial and human resources are in place for the Company to meet
its objectives, and reviews management performance. It also sets the Companys values and
standards and ensures that its obligations to its shareholders and others are understood and met.
Specic responsibilities reserved to the Board include:
To enhance sharehoIder vaIue.
RevIewIng oI corporate objectIves, budgets and Iorecasts.
RevIewIng oI operatIonaI and IunctIonaI perIormance.
ApprovIng capItaI Investments.
FnsurIng the ImpIementatIon oI an eIIectIve InternaI controI system.
FnsurIng compIIance wIth hIghest ethIcaI and IegaI standards.
ApprovaI oI the AnnuaI and InterIm FInancIaI Statements prIor to pubIIcatIon.
RecommendIng DIvIdends Ior approvaI by the sharehoIders.
The Board comprises of nine Directors out of whom six are Non-Executive Directors. The names
and proles of the Directors are given on pages 12 to 15 of this report. The Board recognizes the
need for a clear division of responsibilities in running the Board and Executive responsibilities of
running the Company business. Accordingly, the positions of Chairman and Managing Director
have been separated.
Corporate Governance
ACL Cables PLC Annual Report 2010/11
24
The Board Balance
The composition of the Executive and Non-Executive Directors satises the requirements laid
down in the Listing Rules of the Colombo Stock Exchange. The Board consists of six Non-Executive
Directors and three of them are Independent Non-Executive Directors. The Board has determined
that the three independent Non-Executive Directors satisfy the criteria for Independence set out
in the Listing Rules.
Directors attendance record
The attendance of Directors at relevant meetings of the Board and of the Audit & Remuneration
Committees held during 2010/2011 was as follows.
Name of Director Board
(12 Meetings)
Audit
Committee
(4 meetings )
Remuneration
Committee
(1 meeting)
Executive Directors
Mr. U. G Madanayake Chairman
Mr. Suren Madanayake Managing Director
Mr. Daya Wahalatantiri Director Export
11
12
11
Non-Executive Directors
Dr. S. K Madanayake
Mrs. N. C Madanayake
Mr. Hemantha Perera*
Nil
09
12
Independent Non-Executive Directors
Mr. Ajit Jayaratne
Mr. H. Amarasuriya **
Mr. Rajiv Casie Chitty
12
7/8
10
04
04
01
01
* Mr. Hemantha Perera resigned as a director with eect from 31/03/2011.
** Mr. H. Amarasuriya was appointed as a Director in August 2010.
Dedication of Adequate Time & Effort
Every Director should dedicate adequate time and eort to matters of the Board and the Company.
Adequate time is devoted at every meeting to ensure that the Boards responsibilities are
discharged satisfactorily.
In addition, the Executive Directors of the Board have regular meetings with the Management
when required.
Training for the Directors
Every Director should receive appropriate training on the rst occasion that he or she is appointed
to the Board of a listed Company and subsequently as necessary. The policy on Directors training
is, to provide adequate opportunities for continuous development subject to requirements and
relevance for each Director.
Corporate Governance
ACL Cables PLC Annual Report 2010/11
25
Re- Election of Directors
All directors should be required to submit themselves for re-election at regular intervals and at
least every three years. According to the Articles of Association, Directors Mrs. N.C. Madanayake
and Mr. Daya Wahalatantiri retire by rotation and are required to stand for re-election by
shareholders at the Annual General Meeting.
Availability of a Nomination Committee
A Nomination Committee should be established to make recommendations to the Board on all
new Board appointments. 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.
The Company has not formed a specied Nomination Committee. However, performance of the
Board and its composition are being evaluated annually.
Accountability and Audit
The Board should present a balanced and understandable assessment of the Companys position
and prospectus.
The Quarterly and Annual Financial statements, prepared and presented in conformity with Sri
Lanka Accounting Standards, comply with the requirements of the Companies Act No. 07 of 2007.
The Report of the Directors is provided on pages 38 to 40 of this report. The Statements of
Directors Responsibility for nancial reporting and report of the Auditors are stated on pages 41
and 45 respectively. The Going Concern Declaration by the Board of Directors in this regard is
presented in the report of Directors on page 38 of this Annual Report.
Internal Control
The Board acknowledges its overall responsibility for maintaining a sound system of internal
controls to safeguard shareholders investments and the Companys assets. The Boards policy
is to have systems in place which optimize the Groups ability to manage risk in an eective
and appropriate manner. The Board has delegated to the Audit Committee responsibility for
identifying, evaluating and monitoring the risks facing the Group and for deciding how these are
to be managed. In addition to a quarterly internal audit carried out by an external professional
body, members of the Audit Committee are expected to report to the Board as necessary the
occurrence of any material control issues, serious accidents or events that have had a major
commercial impact, or any signicant new risks which have been identied.
ACL Cables PLC Annual Report 2010/11
26
A summary of those risks which could have a material impact on the performance of the Group is
given within the Risk Management section in the Annual Report. The objective of the Groups risk
management process is to ensure the sustainable development of ACL Cables PLC through the
conduct of its business in a way which:
SatIsIIes Its customers,
DeveIops envIronmentaIIy IrIendIy products,
FrovIdes a saIe and heaIthy workpIace,
Frotects agaInst Iosses Irom unIoreseen causes,
MInImIzes the cost and consumptIon oI IncreasIngIy scarce resources,
Frevents poIIutIon and wastage,
MaIntaIns proper reIatIonshIp wIth suppIIers and contractors, and
MaIntaIns a posItIve reIatIonshIp wIth the communItIes In whIch we do busIness.
The Groups systems and procedures are designed to identify, manage and where practicable,
reduce and mitigate eects of the risk of failure to achieve business objectives. They are not
designed to eliminate such risk, recognizing that any system can only provide reasonable and not
absolute assurance against material misstatement or loss.
Remuneration Committee
The Remuneration Committee should consist exclusively of Non-Executive Directors who are
Independent of Management. The members of the Remuneration Committee should be listed
each year in the Boards remuneration report to the shareholders. The Remuneration Committee
comprises of the following two Independent Non-Executive Directors.
Mr. AjIt |ayaratne - ChaIrman oI CommIttee
Mr. RajIv CasIe ChItty
Further details of the Remuneration Committee are given in their report on page 44.
Audit Committee
The Audit Committee shall comprise of a minimum of two Independent Non-Executive Directors
or of Non-Executive Directors, a majority of whom shall be independent, whichever is higher.
One Non-Executive Director shall be appointed as Chairman of the committee by the Board of
Directors.
The Audit Committee comprises of the following two Independent Non-Executive Directors.
Mr. AjIt |ayaratne - ChaIrman oI CommIttee
Mr. RajIv CasIe ChItty
Further details of the Audit Committee are given in their report on page 42 & 43.
Corporate Governance
ACL Cables PLC Annual Report 2010/11
27
Code of Business Conduct and Ethics
The Company has adopted a Code of Business Conduct and Ethics for the Directors and members
of the senior management.
The table below indicates the manner and extent to which ACL Cables PLC complies with the Code
of Best Practice in Corporate Governance issued by the Institute of Chartered Accountants of Sri
Lanka and the Listing Rules of the Colombo Stock Exchange.
Corporate Governance Check List
CSE Rule
No.
Subject Applicable requirement
Status
Compliance Applicable section
in the Annual Report
7.10.1(a) Non-Executive
Directors
(NED)
2 or at least 1/3 of the
total number of Directors
should be NEDs.
Corporate Governance
7.10.2 (a) Independent 2 or 1/3 of NEDs,
whichever is higher,
should be independent.
Corporate Governance
7.10.2 (b) Independent Each NED should
submit a declaration of
independence.
Corporate Governance
7.10.3 (a) Disclosure
relating
The oard shaII
annually determine
the Independence or
otherwise of the NEDs.
Names oI IDs shouId be
disclosed in the Annual
Report (AR).
Corporate Governance
7.10.3 (b) Disclosure
relating
The basis for the Boards
determination of ID,
if criteria specied for
independence is not met
Corporate Governance
7.10.3 (c) Disclosure
relating
to Directors
A brief rsum of
each Director should
be included in the AR
including the Directors
areas of expertise.
Board of Directors
(prole) section in the
Annual Report
7.10.3 (d) Disclosure
relating to
Directors
Provide a brief rsum of
new Directors appointed
to the Board with details
specied in 7.10.3(a), (b)
and (c) to the CSE.
Corporate Governance
7.10.4 (a-h) Determination
of
Independence
Requirements for meeting
criteria.
Corporate Governance
ACL Cables PLC Annual Report 2010/11
28
CSE Rule
No.
Subject Applicable requirement
Status
Compliance Applicable section
in the Annual Report
7.10.5 Remuneration
Committee
(RC)
A listed company shall
have a RC.
Corporate Governance
7.10.5 (a) Composition
of
Remuneration
Committee
Shall comprise of NEDs, a
majority of whom will be
independent.
Corporate Governance
7.10.5 (b) Functions of
Remuneration
Committee
The RC shall recommend
the remuneration of the
Managing Director (MD)
and EDs.
Corporate Governance
7.10.5 (a) Disclosure in
the Annual
Report
relating to
Remuneration
Committee
Names of Directors
comprising the RC.
Statement oI
Remuneration Policy
Aggregated.
remuneration paid to
EDs and NEDs.
Corporate Governance
and the Board
Committee Reports
7.10.6 Audit
Committee
(AC)
The Company shall have
an AC.
Corporate Governance
7.10.6 (a) Composition
of
Audit
Committee
Shall Comprise of NEDs
a majority of whom will
be independent.
A NFD shaII be
appointed as the
Chairman of the
Committee.
MD and Croup FInancIaI
Controller(GFC) should
attend AC meetings.
The ChaIrman oI the AC
or one member should
be a member of a
professional accounting
body.
Corporate Governance
and the Board
Committee Reports
7.10.6(b) Audit
Committee
Functions
Overseeing of the
Preparation,
presentation
and adequacy of
disclosures in the
nancial statements
in accordance with
Sri Lanka Accounting
Standards.
Corporate Governance
and the Board
Committee Reports
Corporate Governance
ACL Cables PLC Annual Report 2010/11
29
CSE Rule
No.
Subject Applicable requirement
Status
Compliance Applicable section
in the Annual Report
CompIIance wIth
nancial reporting
requirements,
information
requirements of
the Companies Act
and other relevant
nancial reporting
related regulations and
requirements.
Frocesses to ensure
that the internal
controls and risk
management are
adequate to meet the
requirements of the
Sri Lanka Auditing
Standards.
Assessment oI the
independence and
performance of the
external auditors.
Make recommendatIons
to the Board pertaining
to appointment,
re-appointment and
removal of external
auditors, and approve
the remuneration and
terms of engagement of
the external auditor.
7.10.6 (c) Disclosure
in Annual
Report relating
to Audit
Committee
Names oI DIrectors
comprising the AC.
The AC shaII make a
determination of the
independence of the
Auditors and disclose
the basis for such
determination.
The AR shaII contaIn a
Report of the AC setting
out the manner of
compliance with their
functions.
Board Committee
Reports
ACL Cables PLC Annual Report 2010/11
30
Corporate Soci al Responsi bi l i ty
ACL has been the pioneer in the Sri Lankan cable manufacturing sector since its humble
beginnings in 1962. Over the past few decades, it has grown to become the leading manufacturer
of cables in the country, with signicant market share as a Company and a commanding market
share as a Group. During the past year, ACL has taken giant strides in gaining market share to
achieve and consolidate the dominant position held in the market today.
We take great pride in being a good corporate citizen of Sri Lanka, where all our business activities
aect various stakeholders in many dierent ways. As such, we constantly strive to take initiatives
to nurture and add value to the community around us, so that as they develop, it would in turn
benet the country as well as our Company. These ideologies are ingrained in the ACL Vision,
Mission and Values, which have guided ACL to become a stalwart in the cable manufacturing
industry.
Our Customers
ACL aims to enhance customer satisfaction through the provision of high quality and safe cables.
This is done through constant dialogue with our customers via many communication channels,
so that we can identify their needs and innovate to meet their requirements. Thus, we are able
to cater to any customer's need Ior customIzed cabIes. We set annuaI targets and ImpIement
promotional activities during year. Further, we assess and verify our activities by monitoring
reaction from customers as well as through self-assessment of customer satisfaction related
matters, and by utilizing and applying the feedback we derive from the membership of an
'FIectrIcIan's CIub' whIch Is hosted by ACL.
The ACL Power Pack Electricians Club is the leading electricians club in Sri Lanka, which was
founded with the objectives of providing skills, knowledge and other required guidance and
improving living conditions of key stakeholders of the industry. We endeavour to serve the needs
of all electricians, but especially those of our members, by implementing and practicing the Eight
Betterments concepts which encompass many aspects of our business activities.
Divimaga Balaya Members are given information regarding the latest technological
developments in the electrical industry and training on the safe usage of electrical wiring and
equipment. Training programs were conducted in locations such as Polonnaruwa, Bibila, Ampara,
etc.
Seminar conducted for electricians.
ACL Cables PLC Annual Report 2010/11
31
Divimaga Sariya Visits and educational tours are organized providing an opportunity for
members to visit the ACL Cables factory. In August 2010, the children of ACL employees too, were
given the opportunity to observe cable manufacturing.
Divimaga Danuma An educational magazine is published bi-monthly containing articles on the
safe use of cables, energy conversion, unique features of ACL cables, and more.
Divimaga Rekuma Members of the club are covered by a comprehensive insurance policy
to the value of Rs. 625,000/- for life and accident cover, the premium of which is borne by the
Company. A Life insurance payment was made during the year consequent to the unfortunate
demise of one of our members due to a work-related accident. His dependents had a safety net
due to our initiative.
Divimaga Surakuma For the rst time in Sri Lanka, a Pension Scheme has been introduced for
electricians by the ACL Power Pack Electricians Club.
Divimaga Thorathuru A dedicated Hotline Mobile Service operates 24 hours for electricians to
communicate with the Company.
Divimaga Lakunu A Gift Scheme available for members whose active participation earns them
points which in turn entitles them to valuable gifts.
Divimaga Dakuma Recognizing that good eyesight is a critical asset for an electrician, the
Company has reimbursed the costs of clinic visits and spectacles for our members, with a view to
helping our electricians function eciently and eectively.
Our People
At ACL, we consistently focus on continuous development of our human resources and the
creation of an environment which is conducive for employees to develop and better themselves.
Our success has been built on the collective skills, knowledge and quality of our human capital.
Further, the quaIIty oI our human capItaI has been a drIvIng Iorce behInd the Company's growth
year on year. As part of the human resource development initiative, a consultant has been
Insurance payment being handed over to the late electricians widow.
ACL Cables PLC Annual Report 2010/11
32
appointed to better develop and train our sta. Additionally, English classes are held for various
employee categories so that they are groomed and geared to be our driving force in the future
too.
During the year under review, the Company continued to oer opportunities for employees
career development, and the improvement of their skills and attitudes. There are numerous
potential benets to be gained by modern businesses and individuals from systematic, well-
planned training and development programs. As such, Interactive Workshops and Seminars have
been conducted during the year. Furthermore, the Company accepts and acknowledges the
responsibility for continuous professional development of sta members, and in this light, oers
its employees opportunities to participate in special training programs and conferences conducted
by professional organizations.
We also recognize that it is essential for various social activities to be encouraged and organized
in order to create an atmosphere of togetherness amongst members of the ACL family, as stated
in our value statement. With that in mind we have integrated a number of social activities into our
yearly schedule, which includes an annual trip, the ACL Night, and New Year festival activities.
ACL Factory sta participating in traditional Kotta pora and Tug of War events at the New Year
festivities.
Sales promotion team with award winners
and their awards in the foreground.
Corporate Soci al Responsi bi l i ty
An annual awards ceremony is held for ACL Sales Promotion ocers as a means of recognizing
and rewarding the employees who have contributed most to the continued success of ACL.
ACL Cables PLC Annual Report 2010/11
33
In order to improve the benets oered to employees, medical facilities provided to the sta were
streamlined and enhanced. In addition, to recognize their loyalty and dedication, employees who
had served the Company for 25 years were presented with Gold Coins at the New Year celebration
on 1st January 2011.
ACL takes justiable pride in caring for our employees and their dependents. Thus we have an
initiative named ACL Nena Thilina, which is a program where we grant scholarships to children
of employees who excel at the examinations. The top three children passing the A/Ls, O/Ls and
Grade 5 Scholarship exams are given monetary prizes by ACL at an award ceremony so that these
children are recognized for their achievements and are encouraged to develop further. Employees
take great pride in their children being recognized for their academic achievements.
An Art Competition was held in connection with the annual Poson Bakthi Geetha program, where
children of the employees took part, and prizes were awarded to the winners in each category.
Further, a pack of stationery is given to every employees child who is currently attending school.
This distribution is done at the beginning of every year.
Our Community
ACL strives to understand and respect the cultural values and laws wherever we operate. We actively
support important initiatives in those communities where our employees live and work. This
commitment is evident from our contributions of equipment and nancial and volunteer support.
ACL supports various community charity causes, such as donating funds to the Cancer Hospital at
Maharagama. ACL also continuously provides nancial support for the betterment of society and
the surrounding communities, which improves the socio-economic background so that society
benets from it.
ACL conducts annual cultural events such as New Year festivals, Poson Bakthi Geetha, and the Aloka
Poojawa at Ridi Viharaya. These are conducted to enrich the lives of those in the neighbouring
communities. This also creates a platform from which ACL employees can interact with the
surrounding communities and engage themselves in activities other than just their routine work.
The Chairman switching on the lights for the
Aloka Pooja at Ridi Viharaya.
The Managing Director switching on the lights
for the Aloka Pooja at Ridi Viharaya.
ACL Cables PLC Annual Report 2010/11
34
Environmental Responsibility
Environmental sustainability at ACL begins with our pledge to provide innovative and high quality
cables which are manufactured under guidance of best practices and in an energy ecient
manner. ACL employees are encouraged to be committed towards creating and maintaining a
cleaner and safer working environment within the factory premises so that all employees are able
to work in more habitable surroundings.
We continuously follow the strategy of training employees across the oce and factory premises
of the Company on the Japanese 5S concept, promoting it as a basic and compulsory productivity
improvement standard to be implemented throughout the Company. Further, 5S audits were
carried out during the year to ensure the eectiveness of the program.
The Company also falls in line with the environmental laws of the country through compliance
licensing in our other operational areas.
The Company invests in new technology which is more energy ecient and less harmful to
the envIronment and reduces waste. ThIs In turn contrIbutes to the contInuous 'greener' poIIcy
initiatives which have enabled ACL to become a shining example in the Cables manufacturing
sector in Sri Lanka.
Our environmental initiative was the compelling reason for ACL to come forward as the Principal
Sponsor of the Earth Hour in Sri Lanka. ACL donated a sum of Rs. 600,000/- towards the event,
and management personnel participated in the organizing of the event in order to make it the
overwhelming success that it was. The ceremony included many spectacular cultural pageants
such as Gini Sisila, Pandam Paliya, Dekona Wilakkuwa and traditional Drum-beating events.
Interesting speeches and lectures were also held, but the core event during the ceremony was
the switching o of non-essential lights of the area from 8.30 to 9.30 pm. During this hour the
premises was lit with copra lamps, which is a non-fossil fuel.
Earth Hour sponsorship funds being handed
over.
Children singing the National Anthem at the
Earth Hour ceremony.
Corporate Soci al Responsi bi l i ty
ACL Cables PLC Annual Report 2010/11
35
Awards
Crystal Award 2009
Award for the Winner of the Gold
Awards over three Consecutive Years
by the Ceylon National Chamber of
Industries.
Asia Pacic Quality Award 2008
Won the highest award, beating
participants from 46 countries, and
ACL recognized as a world-class
company.
Provincial Productivity Awards -
1
st
Place 2007
organized by the National Productivity
Secretariat.
National Quality Award Winner
2007
ACL Cables PLC Annual Report 2010/11
36
Fi nanci al I nformati on
ACL Cables PLC Annual Report 2010/11
37
38 Report of the Directors
41 DIrectors' ResponsIbIIIty Ior FInancIaI ReportIng
42 Audit Committee Report
44 Remuneration Committee Report
45 Independent AudItor's Report
46 Income Statement
47 Balance Sheet
48 Statement of Changes in Equity
49 Cash Flow Statement
50 Notes to the Financial Statements
ACL Cables PLC Annual Report 2010/11
38
Report of the Di rectors
The Directors have pleasure in presenting their 49th Annual Report together with the Audited
Balance Sheet, Income Statement and Consolidated Financial Statements of the Group for the year
ended 31st March 2011.
Review of the Year
The Chairmans Statement and Managing Directors Review set out the state of aairs and
performance of the Company during the year.
Principal Activities of the Group
Description of the nature of the operations and principal activities of the Company and its
subsidiaries are given on pages 18 to 19.
Independent Auditors Report
The Independent Auditors Report on the Financial Statements is given on page 45 in this Report.
Financial Statements
The Financial Statements prepared in compliance with the requirements of Section 151 of the
Companies Act No. 7 of 2007 are given on pages 46 to 81 in this Annual Report.
Accounting Policies
The Accounting Policies adopted in preparation of the Financial Statements are given on pages 50
to 57. There were no changes in the Accounting Policies adopted by the Company during the year.
Directors Responsibilities for Financial Statements
The Statement of the Directors Responsibilities for Financial Statements is given on page 41.
Going Concern
The Board is satised that the Company will continue its operations in the foreseeable future. For
this reason, the Company continues to adopt the going concern basis in preparing the Financial
Statements.
Stated Capital
The Stated Capital of the Company on 31st March 2011 was Rs.299, 488,400/= and was
unchanged during the year.
Events Occuring After The Balance Sheet Date
No circumstance have arisen since the Balance Sheet date which would require adjustments to
or disclosure in the Financial Statements other than those disclosed in Note 37 to the Financial
Statements.
ACL Cables PLC Annual Report 2010/11
39
Statutory Payments
All known statutory payments have been made or provided for by the Company.
Directors
Directors of the Company are listed on pages 12 to 15 and their respective shareholdings are
given below.
No of
Shares
As at
31.03.2011
% Holding
As at
31.03.2011
No of
Shares
As at
31.03.2010
% Holding
As at
31.03.2010
U. G. Madanayake - Chairman 22,642,116 37.80% 22,642,116 37.80%
Suren Madanayake - Managing Director 13,302,396 22.21% 13,302,396 22.21%
Dr. S. K. Madanayake 165,072 0.28% 165,072 0.28%
Mrs. N. C. Madanayake 1,032,100 1.72% 1,032,100 1.72%
Hemantha Perera * - - - -
A. M. S. De S. Jayaratne - - - -
Hemaka Amarasuriya ** - - - -
D. D. Wahalatantiri - - - -
P. S. R. Casie Chitty - - - -
* - Resigned with eect from 31.03.2011
** - Appointed with eect from 02.08.2010
Interest Register
The Interest Register is maintained by the Company, as per the Companies Act No. 7 of 2007. All
Directors have made declarations in accordance with the aforesaid Act. The Interest Register is
available for inspection as required by the Companies Act.
Directors Interest in Contracts
Directors interests in contracts of the Company are disclosed in Note 35 to the Financial
Statements and no Director of the Company is directly or indirectly interested in any other
contracts with the Company. The Directors retiring by rotation in terms of Article 85 will be Mrs.
N. C. Madanayake & Mr. Daya Wahalatantiri, who being eligible are recommended for re-election.
Directors Remuneration
Remuneration received by the Directors is set out in Note 35 to the Financial Statements.
Directors Meetings
The details of Directors meetings are set out on pages 23 to 25 under the Corporate Governance
of the Annual Report.
ACL Cables PLC Annual Report 2010/11
40
Dividends
The Board of Directors have decided not to declare a dividend for the year 2010/2011.
Donations
Donations amounting to Rs. 1,450,445 (Group Amount) were made during the year under review.
Appointment of Auditors
1) Messrs. PricewaterhouseCoopers, have expressed their willingness to continue in oce as
Auditors of the Company for the year ending 31st March 2012. A resolution pertaining to their
reappointment and authorizing the Directors to determine their remuneration will be proposed
at the Annual General Meeting.
By Order of the Board
(Sgd.)
Corporate Aairs (Private) Limited
Secretaries
25th August 2011
Report of the Di rectors
ACL Cables PLC Annual Report 2010/11
41
The Board accepts responsibility for the preparation and fair presentation of Financial Statements
in accordance with Sri Lanka Accounting Standards. This responsibility includes: designing,
implementing and maintaining internal controls 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.
In discharging this responsibility, the Directors have instituted a system of internal nancial
controls and a system for monitoring its eectiveness. The system of controls provide reasonable
and not absolute assurance of safeguarding of Companys assets, maintenance of proper
accounting records and the reliability of nancial information.
The Financial Statements reect a true and fair view of the state of aairs of the Company and the
Group as at 31st March 2011 and provide the information required by the Companies Act No. 7
of 2007. The Financial Statements have been prepared on the going concern basis as the Board is
satised that the Company will continue its operations in the foreseeable future.
Approval of Financial Statements
The Directors Report and the Financial Statements of the Company and of the Group were
approved by the Board of Directors on 25th August 2011
By Order of the Board
(Sgd.)
Corporate Aairs (Private) Limited
Secretaries
25th August 2011
Di rectors' Responsi bi l i ty for Fi nanci al Reporti ng
ACL Cables PLC Annual Report 2010/11
42
The Audit Committee consists of following two Independent Non-Executive Directors, biographical
details of whom are set out within Proles of the Directors section.
Mr. AjIt |ayaratne - ChaIrman oI the CommIttee
Mr. RajIv CasIe ChItty
The above members have signicant recent and relevant nancial experience as required by the
Code of Best Practice in Corporate Governance, issued by the Institute of Chartered Accountants of
Sri Lanka and the Listing Rules of the Colombo Stock Exchange.
Role
The primary role of the Audit Committee, which reports its ndings to the Board of Directors,
is to ensure the integrity of the nancial reporting and audit processes and the maintenance of
sound internal controls and risk management system. The Committees` responsibilities include
monitoring and reviewing the following:
The IntegrIty oI the Croup's nancIaI statements and the sIgnIcant reportIng judgments
contained in them.
The actIvItIes and eectIveness oI the InternaI audIt IunctIon.
The eectIveness oI the Croup's InternaI controI and rIsk management systems.
The approprIateness oI the Croup's reIatIonshIp wIth the externaI audItors, IncIudIng audItor
independence, fees and provision of non-audit services.
The eectIveness oI the externaI audIt process, makIng recommendatIons to the oard oI
Directors on the appointment of the external auditors.
In the performance of its duties, the Committee has independent access to the services of Internal
Audit and to the External Auditors, and may obtain outside professional advice as necessary.
Comprehensive brieng papers are circulated to Committee members in advance of each meeting
and made available to other Directors.
Meetings & attendance
The Committee met on four occasions in 2010/2011 timed to coincide with the nancial and
reporting cycles of the Company. Members attendance at these meetings is set out in the
Corporate Governance Report. The Chairman, Managing Director & Group Financial Controller are
invited to attend meetings whenever required.
Financial Reporting
The Audit Committee considered a wide range of nancial reporting and related matters in respect
of the 2010/2011 published Financial Statements. For quarterly statements, the Committee
reviewed any signicant areas of judgment that materially impacted reported results, key points of
disclosure and presentation to ensure adequacy, clarity and completeness of the Interim Financial
Statements.
Audi t Commi ttee Report
ACL Cables PLC Annual Report 2010/11
43
External Auditors
The Audit Committee is responsible for the development, implementation and monitoring of
the Companys policies on external audit. The policies, designed to maintain the objectivity and
independence of the external auditors, regulate the appointment of former employees of the
external audit rm to positions in the Group and set out the approach to be taken when using the
external auditors for non-audit work.
As a general principle, the external auditors are excluded from consultancy work and cannot
be engaged by ACL Cables PLC for other non-audit work unless there are compelling reasons to
do so. Any proposal to use the external auditors for non-audit work must be submitted to the
Managing Director, via the Group Financial Controller, for approval prior to appointment.
The Audit Committee, having evaluated the performance of the external auditors,
decided to recommend to the Board of ACL Cables PLC, the re-appointment of Messrs.
PricewaterhouseCoopers as auditors of the Company, subject to the approval of the shareholders
at the Annual General Meeting. Details of the fees payable to external auditors for 2010/2011 can
be found in Note 5 to the nancial statements.
Internal Control System
In 2010/2011 the Committee reviewed the results of the audits undertaken by Internal Auditors,
Messrs. Ernst & Young Advisory Services (Pvt) Ltd., and considered the adequacy of managements
response to the matters raised, including the implementation of any recommendations made.
On behalf of the Committee
(Sgd.)
Mr. Ajit Jayaratne
Chairman of the Audit Committee
25th August 2011
ACL Cables PLC Annual Report 2010/11
44
The Remuneration Committee comprises of the two Non-Executive Directors, namely
Mr. AjIt |ayaratne - ChaIrman oI the CommIttee
Mr. RajIv CasIe ChItty
The members of the Committee and the chairman of the Committee shall be appointed from time
to time by a resolution of the Board, from amongst the Non-Executive Directors. The Remuneration
Committee formally met once in the last nancial year.
Role
The Remuneration Committee formulates the Groups policy for the remuneration of the Executive
Directors of ACL Cables PLC. It reviews the policy annually and recommends any changes to the
Board for formal approval. The Group policy on remuneration packages is to attract and retain the
best professional and managerial talent to the Group and also to motivate and encourage them to
perform at the highest possible level. The Group has a structured and professional methodology in
evaluating the performance of employees.
The Remuneration Committee determines the Companys Remuneration Policy of Executive
Directors, with regard to performance standard and existing industry practice. No Executive
Director is involved in deciding his own remuneration package.
Activities
The Committee considered a range of issues including,
A revIew oI the DIrectors' remuneratIon and severance poIIcIes
DetermInIng the Iees oI dIrectors and
A IormaI evaIuatIon oI Its own perIormance.
Members attendance at meetings of the Remuneration Committee in 2010/2011 is set out in the
table in the Corporate Governance Report.
Executive Directors
ACLs remuneration policy for executive directors is designed to attract, retain and motivate
executives of the high caliber required to ensure that the Group is managed successfully to the
benet of shareholders. To achieve this, a competitive package of incentives and rewards linked
to performance is provided.
In setting remuneration levels, the Committee takes into consideration the remuneration practices
found in other leading companies and also ensures that the remuneration arrangements for
executive directors are compatible with those for executives throughout the Group.
In conclusion, my sincere thanks to Mr. Rajiv Casie Chitty, member of the committee for his
valuable contribution to the work of the Committee.
On behalf of the Committee
(Sgd.)
Mr. Ajit Jayaratne
Chairman of the Remuneration Committee
25th August 2011
Remunerati on Commi ttee Report
ACL Cables PLC Annual Report 2010/11
45
I ndependent Audi tor's Report
To the Members of ACL Cables PLC
Report on the nancial statements
1. We have audited the accompanying nancial statements of ACL Cables PLC (the Company), the consolidated
nancial statements of ACL Cables PLC and its subsidiaries (the Group) which comprise the balance sheets as at
31 March 2011, and the income statements, statements of changes in equity and cash ow statements for the
year then ended, and a summary of signicant accounting policies and other explanatory notes, as set out on
pages 46 to 81.
Managements Responsibility for the Financial Statements
2. Management is responsible for the preparation and fair presentation of these nancial 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 nancial 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
3. Our responsibility is to express an opinion on these nancial 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 nancial statements are free from material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the nancial
statements. An audit also includes assessing the accounting principles used and signicant estimates made by
management, as well as evaluating the overall nancial 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
4. In our opinion, so far as appears from our examination, the Company maintained proper accounting records for
the year ended 31 March 2011 and the nancial statements give a true and fair view of the Companys state of
aairs as at 31 March 2011 and of its prot and cash ows for the year then ended in accordance with Sri Lanka
Accounting Standards.
5. In our opinion, the consolidated nancial statements give a true and fair view of the state of aairs as at 31
March 2011 and of the consolidated prot and cash ows for the year then ended in accordance with Sri Lanka
Accounting Standards, of the Group dealt with thereby, so far as concerns the shareholders of the Company.
Report on Other Legal and Regulatory Requirements
6. These nancial statements also comply with the requirements of Section 153 (2) to 153 (7) of the Companies
Act, No. 07 of 2007.
CHARTERED ACCOUNTANTS
Colombo
26th August 2011
ACL Cables PLC Annual Report 2010/11
46
I ncome Statement
(All amounts in Sri Lanka Rupees)
Group Company
Year Ended Year Ended
31 March 31 March
Notes 2011 2010 2011 2010
Revenue 3 9,569,771,115 7,242,947,358 5,181,843,384 3,495,236,520
Cost of sales (8,280,809,137) (6,098,280,574) (4,744,692,707) (3,172,153,423)
Gross prot 1,288,961,978 1,144,666,784 437,150,676 323,083,098
Other income 4 50,413,970 13,096,703 45,812,335 40,666,873
Distribution cost (403,216,624) (425,496,678) (180,312,634) (183,931,252)
Administration cost (259,704,013) (265,836,132) (96,552,545) (122,570,818)
Operating prot 5 676,455,312 466,430,677 206,097,832 57,247,901
Net nance cost 7 (226,755,191) (270,145,662) (172,203,829) (204,101,165)
Prot/ (loss) before tax 449,700,121 196,285,015 33,894,003 (146,853,263)
Income tax 8 (162,959,908) (141,203,109) (25,322,096) 36,980,638
Prot/ (loss) for the year 286,740,213 55,081,906 8,571,907 (109,872,625)
Share of (prot)/ loss
attributable to minority (54,193,370) (59,870,523) - -
Net prot/ (loss) attributable to
equity holders of the Company 232,546,843 (4,788,617) 8,571,907 (109,872,625)
Earning/ (loss) per share 9 3.88 (0.08) 0.14 (1.83)
Dividend per share 10 - - - -
The notes on pages 50 to 81 form an integral part of these nancial statements.
ACL Cables PLC Annual Report 2010/11
47
Bal ance Sheet
(All amounts in Sri Lanka Rupees)
Group Company
As at 31 March As at 31 March
Notes 2011 2010 2011 2010
ASSETS
Non current assets
Property, plant and equipment 11 1,943,594,120 1,854,664,461 815,995,717 795,182,706
Work in progress 12 133,225,619 102,233,873 106,399,394 41,081,510
Investment property 13 125,000,000 120,000,000 - -
Intangible assets 14 5,993,702 5,993,702 - -
Leasehold properties 15 1,798,444 1,820,647 - -
Investment in subsidiaries 16 - - 538,247,906 538,247,906
Investment in other companies 17 25,816,147 23,398,646 20,246,349 8,010,872
2,235,428,032 2,108,111,329 1,480,889,366 1,382,522,992
Current assets
Inventories 18 3,414,661,009 2,781,361,513 1,988,601,341 1,504,369,218
Receivables and prepayments 19 2,913,902,476 2,261,421,544 1,924,712,841 1,306,009,247
Leasehold properties 15 22,203 21,935 - -
Cash and cash equivalents 20 382,091,877 884,882,123 233,369,068 559,183,594
6,710,677,565 5,927,687,115 4,146,683,250 3,369,562,060
Total assets 8,946,105,597 8,035,798,444 5,627,572,616 4,752,085,051
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 30 299,488,400 299,488,400 299,488,400 299,488,400
Capital reserve 31 863,319,519 799,786,664 330,855,735 330,855,735
General reserve 32 1,123,825,080 1,123,825,080 680,265,800 680,265,800
Retained earnings 1,723,107,434 1,490,573,407 895,876,906 887,304,997
Total equity attributable to equity
holders of the Company 4,009,740,433 3,713,673,551 2,206,486,840 2,197,914,932
Minority interest 507,317,610 455,172,627 - -
Total equity 4,517,058,043 4,168,846,178 2,206,486,840 2,197,914,932
Non current liabilities
Provision for payment in lieu of
employee share issue scheme 25 2,775,329 2,920,369 - -
Dened benet obligations 26 144,798,835 124,859,610 99,735,854 86,970,681
Deferred tax liability 27 53,493,462 52,482,993 7,748,410 3,110,592
Borrowings 22 300,000,000 400,000,000 300,000,000 400,000,000
Finance lease obligation 23 540,061 980,695 540,061 980,695
501,607,686 581,243,667 408,024,325 491,061,968
Current liabilities
Trade and other payables 21 1,204,204,402 525,001,723 1,375,542,569 459,860,446
Income tax payable 24 137,819,611 240,785,758 72,514,020 51,829,742
Finance lease obligation 23 776,110 489,095 776,110 489,095
Dividend payable 4,746,426 4,698,207 - -
Borrowings 22 2,579,893,318 2,514,733,816 1,564,228,751 1,550,928,868
3,927,439,867 3,285,708,599 3,013,061,451 2,063,108,151
Total liabilities 4,429,047,554 3,866,952,266 3,421,085,775 2,554,170,119
Total equity and liabilities 8,946,105,597 8,035,798,444 5,627,572,616 4,752,085,051
It is certied that these nancial statements have been prepared in compliance with the requirements of the Companies Act, No. 7 of 2007.
Champika Coomasaru
Group Financial Controller
The Board of Directors is responsible for the preparation and presentation of these nancial statements. These nancial statements were
authorised for issue by the Board of Directors on 25th August 2011.
U. G. Madanayake Suren Madanayake
Chairman Managing Director
The notes on pages 50 to 81 form an integral part of these nancial statements.
ACL Cables PLC Annual Report 2010/11
48
Statement of Changes i n Equi ty
(All amounts in Sri Lanka Rupees)
Group
Stated Capital General Retained Minority
Notes capital reserve reserve earnings interest Total
Balance at 1 April 2009 299,488,400 441,223,100 1,123,825,080 1,501,308,728 426,976,320 3,792,821,628
Net (loss)/ prot - - - (4,788,618) 59,870,523 55,081,906
Rights issues acquired by
minority interest - - - - 354,700 354,700
Revaluation surplus 31 - 367,340,918 - - - 367,340,918
Deferred tax on revaluation surplus - (8,191,605) - - - (8,191,605)
Transfer from revaluation reserve 31 - (908,490) - 908,490 - -
Deferred tax on transfer 31 - 322,741 - - - 322,741
Acquisition of shares by parent - - - - (21,670,983) (21,670,983)
Dividend paid - - - - (9,904,040) (9,904,040)
Balance at 31 March 2010
- Previously stated 299,488,400 799,786,664 1,123,825,080 1,497,428,600 455,626,521 4,176,155,265
Deferred income tax charge in
relation to prior year 36 - - - (6,855,193) (453,894) (7,309,087)
Balance at 31 March 2010
- As restated 299,488,400 799,786,664 1,123,825,080 1,490,573,407 455,172,627 4,168,846,178
Balance at 1 April 2010 299,488,400 799,786,664 1,123,825,080 1,490,573,407 455,172,627 4,168,846,178
Net prot - - - 232,546,843 54,193,370 286,740,213
Purchase of own shares by
subsidiaries - - - (921,306) (82,094) (1,003,400)
Revaluation surplus 31 - 67,305,675 - - 4,456,426 71,762,101
Deferred tax on revaluation 31 - (3,030,183) - - 540,257 (2,489,926)
Transfer from revaluation reserve 31 (908,490) - 908,490 - -
Deferred tax on transfer 31 - 165,854 - - 88,523 254,377
Dividend paid - - - - (7,051,500) (7,051,500)
Balance at 31 March 2011 299,488,400 863,319,519 1,123,825,080 1,723,107,434 507,317,610 4,517,058,043
Company
Stated Capital General Retained
capital reserve reserve earnings Total
Balance at 1 April 2009 299,488,400 330,855,735 680,265,800 997,177,623 2,307,787,558
Net loss - - - (109,872,625) (109,872,625)
Balance at 31 March 2010 299,488,400 330,855,735 680,265,800 887,304,997 2,197,914,932
Balance at 1 April 2010 299,488,400 330,855,735 680,265,800 887,304,997 2,197,914,932
Net prot - - - 8,571,907 8,571,907
Balance at 31 March 2011 299,488,400 330,855,735 680,265,800 895,876,906 2,206,486,840
The notes on pages 50 to 81 form an integral part of these nancial statements.
ACL Cables PLC Annual Report 2010/11
49
(All amounts in Sri Lanka Rupees)
Group Company
Year ended 31st March Year ended 31st March
Notes 2011 2010 2011 2010
Operating activities
Cash generated from/ (used in)
operations 33 178,674,533 (94,722,781) 35,686,945 138,588,095
Interest paid 7 (243,348,683) (281,051,647) (180,037,797) (207,827,579)
Gratuity paid 26 (8,777,182) (5,221,054) (3,950,896) (3,514,540)
Payment in lieu of employee
share issue scheme 25 (145,040) (178,511) - -
Income tax paid less refund received 24 (263,354,901) (111,436,077) - (65,328,732)
WHT on dividend paid by subsidiary 8 (3,796,234) (4,835,536) - -
Net cash used in
operating activities (340,747,507) (497,445,606) (148,301,749) (138,082,756)
Investing activities
Interest received 7 16,593,492 11,244,423 8,127,299 3,726,414
Purchase and construction
of property, plant and
equipment 11 & 12 (165,756,725) (83,628,687) (131,843,685) (45,516,614)
Dividend received 4 944,772 1,971,295 30,578,782 39,923,684
Investment in other companies (17,726,179) (15,619,635) (17,641,509) (74,160)
Investments in subsidiary companies - - - (15,405,885)
Proceeds on disposal of investments 45,665,048 - 19,846,232 -
Proceeds on disposal of property,
plant and equipment 1,285,871 35,715 413,550 -
Net cash used in investing activities (118,993,722) (85,996,889) (90,519,331) (17,346,561)
Financing activities
Lease installment paid (153,619) (293,330) (293,330) (293,330)
Proceeds from share issue of subsidiary - 354,700 - -
Purchase of own shares by subsidiaries (1,003,400) - - -
Short term borrowings net of payments 183,741,958 437,049,658 56,920,015 (105,303,213)
Long term borrowings net of payments (100,000,000) 378,728,523 (100,000,000) 389,208,335
Dividend paid by subsidiary to minorities (7,051,500) (9,904,040) - -
Net cash generated from/ (used in)
nancing activities 75,533,439 805,935,511 (43,373,315) 283,611,792
(Decrease) / increase in cash and
cash equivalents (384,207,789) 222,493,016 (282,194,394) 128,182,475
Movement in cash and cash equivalents
At the beginning of the year 99,857,658 (122,635,358) 170,182,511 42,000,036
(Decrease) / increase (384,207,789) 222,493,016 (282,194,394) 128,182,475
At the end of the year 20 (284,350,131) 99,857,658 (112,011,883) 170,182,511
The notes on pages 50 to 81 form an integral part of these nancial statements.
Cash Fl ow Statement
ACL Cables PLC Annual Report 2010/11
50
(In the notes all amounts are shown in Sri Lanka Rupees unless otherwise stated)
1. General Information
ACL Cables PLC was incorporated on 1 March 1962 under the Companies Ordinance No. 51 of
1938 as Associated Cables Ltd and on 8 January 1991 the name was changed to ACL Cables
Limited and the Company was re-registered under the Companies Act No. 7 of 2007. At present,
ACL Cables PLC is a Public Limited Liability Company listed on the Colombo Stock Exchange and
domiciled in Sri Lanka. The registered oce and the principal place of business of the Company is
located at No. 60, Rodney Street, Colombo 08.
The principal activities of ACL Cables PLC are manufacturing cables and conductors.
2. Summary of Signicant Accounting Policies
2.1 Basis of Preparation
The consolidated nancial statements are prepared in accordance with and comply with Sri Lanka
Accounting Standards. The consolidated nancial statements are prepared under the historical
cost convention except that land, buildings and investment property is carried at fair value.
2.2 Consolidation
Subsidiary undertakings, which are those companies in which the Group, directly or indirectly,
has an interest of more than one half of the voting rights or otherwise has power to exercise
control over the operations, have been consolidated. Subsidiaries are consolidated from the date
on which eective control is transferred to the Group and are no longer consolidated from the
date of disposal. All inter company transactions, balances and unrealised surplus and decits
on transactions between Group companies have been eliminated in the preparation of nancial
statements.
2.3 New Accounting Standards Issued but not Eective as at the Balance Sheet Date
The Institute of Chartered Accountants of Sri Lanka (ICASL) has issued the new Accounting
Standards given below, which become eective for annual periods beginning on or after 1 January
2012. These standards have not been applied in preparing these nancial statements as they were
not eective for the year ended 31 March 2011.
LKAS 32 - Financial Instruments : Presentation
LKAS 39 - Financial Instruments : Recognition and Measurement
SLFRS 1 - First-time Adoption of Sri Lanka Accounting Standards
SLFRS 7 - Financial Instruments : Disclosure
Disclosure requirements under SLAS 10.30 (b) and 10.31 have been exempted by the ICASL and
therefore all dierences and impacts arising from the new Accounting Standards are not presented
in these nancial statements.
Notes to the Fi nanci al Statements
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2.4 Foreign Currency Transactions
Foreign currency transactions are accounted for at the exchange rates prevailing at the date of
the transactions. Gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies, are recognised in
the income statement. Such balances are translated at exchange rates prevailing at balance sheet
date unless hedged by forward foreign exchange contracts, in which case the rates specied in
such forward contracts are used.
2.5 Taxation
2.5.1 Provision for income tax is based on the elements of income and expenditure as reported
in the nancial statements and is computed in accordance with the provisions of the relevant tax
statutes.
2.5.2 Deferred income tax is provided in full, using the balance sheet liability method, for all
the temporary dierences arising between the tax bases of assets and liabilities and their carrying
amounts in nancial statements. The principal temporary dierences arise from depreciation on
property, plant and equipment, provisions for retirement benet obligations and tax losses carried
forward.
Tax rates enacted or substantively enacted by the balance sheet date are used to determine
deferred income tax.
2.5.3 Deferred tax assets relating to the carry forward of unused tax losses are recognised to
the extent that it is probable that future taxable prot will be available against which the unused
tax losses can be utilised.
2.6 Valuation of Assets and their Bases of Measurement
2.6.1 Property, plant and equipment is stated at cost or fair value less accumulated depreciation
and any impairment in value.
All items of property, plant and equipment are initially recorded at cost. Where items of property,
plant and equipment are subsequently revalued, the entire class of such assets are revalued at fair
value.
When an asset is revalued, any increase in the carrying amount is credited directly to a revaluation
reserve, except that it is credited to the income statement to the extent that it reverses a previous
decit recognised as an expense. Any revaluation decit that osets previous surplus in the same
asset is directly oset against the surplus in the revaluation reserve and any excess recognised
as an expense. Upon disposal, any revaluation reserve relating to the asset sold is transferred to
retained earnings. The dierence between depreciation based on the assets original cost and the
depreciation based on the revalued amount is transferred from revaluation reserve to retained
earnings.
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Provision for depreciation is calculated by using a straight-line method on the cost or valuation
of all property, plant and equipment, other than freehold land, in order to write o such amounts
over the estimated useful economic life of such assets.
The estimated useful lives of the assets are as follows;
Asset Years
Factory buildings 25 - 40
Plant, machinery and accessories 8 - 10
Factory equipment 8 - 10
Electrical ttings 8 - 10
Furniture, xtures and ttings 4 - 10
Oce equipment 4 - 10
Motor vehicles 4 - 5
Tools and implements 4 - 10
The Groups policy up to 31.03.2006 was not to provide depreciation on property, plant and
equipment purchased during the year while the full years depreciation was charged in the year of
disposal.
Commencing from 1st April 2006, depreciation is provided on all property, plant and equipment
from the month the assets are available for use up to the month of disposal.
The useful life and residual value of assets are reviewed and adjusted if required, at the end of
each nancial year.
2.6.2 Leases where the Company assumes substantially all the benets and risks of ownership
are classied as nance leases. Finance leases are capitalised at the estimated present value of
the underlying lease payments. Each lease payment is allocated between the liability and nance
charges so as to achieve a constant rate on the nance balance outstanding. The corresponding
rental obligations, net of nance charges are included in other long term payables. The interest
element of the nance charge is charged to the income statement over the lease period. The
property, plant and equipment acquired under nance leasing contracts is depreciated over the
useful life of the asset.
Leases of assets under which all the risks and benets of ownership are eectively retained by the
lessor are classied as operating leases. Payments made under operating leases are charged to the
income statement on a straight line basis over the period of the lease.
Notes to the Fi nanci al Statements
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2.6.3 Properties held to earn rental income or properties held for capital appreciation or both
and is not occupied substantially for the supply of goods or services or in administration, and
is not intended for sale in the ordinary course of business have been classied as investment
property. Investment properties are initially recognized at cost. Subsequent to initial recognition
the investment properties are stated at fair value, which reects market conditions as at balance
sheet date.
Gains or losses arising from changes in fair value are included in the income statement in the year
in which they arise.
Investment properties are de-recognized when disposed, or permanently withdrawn from use
because no future economic benets are expected. Any gains or losses on retirement or disposal
are recognized in the income statement in the year of retirement or disposal.
Where the Company occupies a signicant portion of the investment property, such investment
properties are treated as property, plant and equipment in the nancial statements and accounted
for as per SLAS - 18 (Revised 2005), Property, Plant and Equipment.
2.6.4 Goodwill represents the excess or the cost of an acquisition over the fair value of the
Croup's share oI the net IdentIabIe assets oI the acquIred subsIdIary at the date oI acquIsItIon.
Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill acquired in a
business combination is tested annually or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired and carried at cost less accumulated impairment
losses.
Negative goodwill arising on an acquisition represents the excess of the fair value of the net
assets acquired over the cost of acquisition. Negative goodwill is recognized immediately in the
income statement.
2.6.5 All quoted and un-quoted securities, which are held as non-current investments, are
valued at cost less impairment losses. The cost of investment is the cost of acquisition inclusive of
brokerage and costs of transaction. The carrying amounts of long term investments are reduced
to recognise a decline which is considered other than temporary, in the value of investments,
determined on an individual investment basis.
In the Companys nancial statements, investments in subsidiaries have been accounted for at
cost, net of any impairment losses which are charged to the income statement. Income from these
investments is recognized only to the extent of dividends received.
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2.6.6 The Group assesses at each reporting date whether there is an indication that an asset
may be impaired. If any such indication exists, or when annual impairment testing for an asset is
required, the Group makes an estimate of the assets recoverable amount. An assets recoverable
amount is the higher of an assets or cash generating units fair value less costs to sell and its
value in use and is determined for an individual asset, unless the asset does not generate cash
inows that are largely independent of those from other assets or groups of assets. Where the
carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount. In assessing value in use, the estimated future
cash ows are discounted to their present value using a pre-tax discount rate that reects current
market assessments of the time value of money and the risks specic to the asset. Impairment
losses recognized in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. 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 assets carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortization, if no impairment loss had been recognized.
An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. Previously recognized
impairment losses, are reversed only if there has been an increase in the recoverable amount of
the asset. Such increase is recognized to the extent of the carrying amount had no impairment
losses been recognized previously.
For goodwill, recoverable amount is estimated at each balance sheet date or as and when an
indication of impairment is identied.
Impairment losses are recognized in respect of subsidiaries acquired, are allocated rst to reduce
the carrying amount of any goodwill allocated to the entity and then to reduce the carrying
amount of the other assets in the entity on a pro-rata basis.
Impairment losses are recognized in the income statement.
2.6.7 Inventories are stated at the lower of cost and net realisable value. Cost is determined by
the weighted average method. The cost of the inventory comprises purchase price, taxes (other
than those subsequently recoverable by the Company from the tax authorities), and transport,
handling and other costs directly attributable to the acquisition of nished goods. It excludes the
borrowing costs. Trade discounts, rebates and other similar items are deducted in determining the
costs of purchase. Net realisable value is the estimate of the selling price in the ordinary course of
business, less the costs of completion and selling expenses.
2.6.8 Trade and other receivables are stated at the amounts estimated to realize, net of
provision for bad and doubtful debts.
Amounts due from related Companies are stated at cost.
Notes to the Fi nanci al Statements
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2.6.9 Cash and cash equivalents comprise cash and bank balances. Bank overdrafts that are
repayable on demand and form an integral part of the Groups cash management are included as a
component of cash and cash equivalents for the purpose of the statement of cash ows.
2.7 Liabilities and Provisions
Liabilities are recognized in the balance sheet when there is a present obligation arising from a
past event, the settlement of which is expected to result in an outow of resources embodying
economic benets. Obligations payable at the demand of the creditor or within one year of the
balance sheet date are treated as current liabilities in the balance sheet. Liabilities payable after
one year from the balance sheet date are treated as non-current liabilities in the balance sheet.
2.7.1 Dened Benet Plan Gratuity
Provision has been made in the nancial statements for retiring gratuities. This has been based on
an actuarial valuation carried out on a Projected Unit Credit (PUC) method as recommended by Sri
Lanka Accounting Standard No. 16 Employee Benets. The actuarial valuation was carried out by
a professionally qualied rm of actuaries as at 31 March 2011. The Group expects to carry out
actuarial valuation once a year.
The actuarial valuation involves making assumptions about discount rate, salary increment
rate and balance service period of employees. Due to the long term nature of the plan such,
estimates are subject to signicant uncertainty.
However, according to the Payment of Gratuity Act No. 12 of 1983, the liability for payment to an
employee arises only after the completion of 5 years continued service.
Based on the revised Sri Lanka Accounting Standard 16 (SLAS16) which became eective from
the nancial year commencing after July 01, 2007, the Group has adopted the actuarial valuation
method from April 01, 2008.
The liability is not externally funded.
2.7.2 Dened Contribution Plans
All employees are eligible for Employees Provident Fund Contributions and Employees Trust
Fund Contributions in line with respective statutes and regulations. The Company and Group
contributes 12% of gross emoluments of employees to an approved Employees Provident Fund
and 3% of gross emoluments of employees to the Employees Trust Fund which are externally
funded.
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2.7.3 Provisions, Contingent Assets and Contingent Liabilities
Provisions are made for all obligations existing as at the Balance Sheet date when it is probable
that such an obligation will result in an outow of resources and reliable estimate can be made of
the quantum of the outow.
All contingent liabilities are disclosed as a note to the nancial statements unless the outow of
resources is remote.
All contingent assets are disclosed where inow of economic benets is probable.
2.8 Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benets will ow to the
Group 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 value
added taxes. The following specic criteria are used for recognition of revenue.
Revenue from the sale of goods is recognized when the signicant risks and rewards of ownership
of the goods have passed to the buyer with the Group retaining neither a continuing managerial
involvement to the degree usually associated with ownership, nor an eective control over the
goods sold.
Interest income is recognized on an accrual basis.
DIvIdend Income Is recognIzed when the sharehoIder's rIght to receIve the payment Is estabIIshed.
Net gains and losses of a revenue nature arising from the disposal of property, plant and
equipment and other non-current assets, including investments, are accounted for in the income
statement, after deducting from the proceeds on disposal, the carrying amount of such assets
and the related selling expenses. Gains and losses arising from activities incidental to the main
revenue generating activities and those arising from a group of similar transactions which are not
material are aggregated, reported and presented on a net basis.
Other income is recognized on an accrual basis.
2.9 Borrowing Costs
Borrowing costs are recognized as an expense in the period in which they are incurred, except
to the extent that they are directly attributable to the acquisition, construction or production of a
qualifying asset, in which case it is capitalized as part of the cost of the asset.
Notes to the Fi nanci al Statements
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2.10 Comparatives
Where necessary, comparative gures have been adjusted to conform with changes in
presentation in the current year.
2.11 Segment Reporting
A segment is a distinguishable component of Group that is engaged either in providing products
or services (business / industry segment), or in providing products or services within a particular
economic environment (geographical segment), which is subject to risks and rewards that are
dierent from those of other segments.
The segment information has been prepared in accordance with the accounting policies adopted
for preparing and presenting the nancial statements.
2.12 Earnings Per Share
The Group presents basic earnings per share (EPS) for its ordinary shares. Basic EPS is calculated
by dividing the prot attributable to ordinary shareholders of the Group by the weighted average
number of ordinary shares outstanding during the year.
ACL Cables PLC Annual Report 2010/11
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Group Company
Year ended 31 March Year ended 31 March
2011 2010 2011 2010
3. Revenue
Gross revenue 9,572,182,649 7,245,829,606 5,183,839,346 3,497,576,080
Turnover Tax (411,900) (1,618,235) - (1,075,547)
Nation Building Tax (1,999,634) (1,264,012) (1,995,963) (1,264,012)
Net revenue 9,569,771,115 7,242,947,358 5,181,843,384 3,495,236,520
3. (i) Geographical segment turnover
Local 7,827,392,968 6,312,037,722 4,627,000,271 3,106,677,560
Export 1,744,789,681 933,791,884 556,839,075 390,898,520
9,572,182,649 7,245,829,606 5,183,839,346 3,497,576,080
4. Other income
Dividend income 944,772 1,971,295 30,578,782 39,923,684
Prot on disposal of property,
plant and equipment 1,285,871 35,714 413,550 -
Prot on sale of shares 30,356,369 - 14,440,202 -
Change in fair value of investment
property (Note 13) 5,000,000 - - -
Sundry income 12,826,958 4,824,596 379,800 743,189
Negative goodwill (Note 14) - 6,265,098 - -
50,413,970 13,096,703 45,812,335 40,666,873
Notes to the Fi nanci al Statements
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5. Operating prot
The following items have been charged/ (credited) in arriving at operating prot:
Group Company
Year ended 31 March Year ended 31 March
2011 2010 2011 2010
Directors emoluments 26,063,333 20,557,667 16,900,000 13,440,000
Auditors remuneration
- audit 1,812,595 1,735,280 550,000 500,000
- non-audit 65,000 152,859 - -
Legal fees 649,715 1,937,479 649,715 1,937,479
Depreciation on property, plant
and equipment (Note 11) 117,597,500 121,110,337 45,712,789 50,964,385
Donations 1,450,445 994,710 1,450,445 492,970
Net foreign exchange (gain)/ loss (6,862,785) 4,492,895 (6,862,785) 3,332,660
Amortization of leasehold properties (Note 15) 21,935 21,935 - -
Bad debts written o 347,002 8,613,696 - -
Sta cost (Note 6) 630,919,226 538,423,557 360,037,760 302,316,598
Change in fair value of investment
property (Note 13) (5,000,000) - - -
6. Sta cost
Salaries, wages and related cost 556,069,620 468,137,628 317,095,923 257,412,850
Dened contribution plan 46,133,199 41,108,057 26,225,767 23,428,136
Dened benet plan (Note 26) 28,716,407 29,177,872 16,716,070 21,475,613
630,919,226 538,423,557 360,037,760 302,316,598
Average number of employees during the year 1,149 1,075 600 581
7. Net nance cost
Interest income (16,593,492) (11,244,423) (8,127,299) (3,726,414)
Interest expense 243,348,683 281,051,647 180,331,128 207,827,579
Lease interest - 338,438 - -
226,755,191 270,145,662 172,203,829 204,101,165
8. Income tax
Current tax 156,193,922 175,014,780 20,684,278 -
Under/ (over) provision in respect
of prior years 4,194,832 (359,961) - -
Deferred tax (release)/ charge (Note 27) (1,225,080) (38,287,246) 4,637,818 (36,980,638)
WHT on dividend paid by subsidiaries 3,796,234 4,835,536 - -
162,959,908 141,203,109 25,322,096 (36,980,638)
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8. Income tax (Contd.)
Tax charge on the Company's and Croup's protJ (Ioss) beIore tax dIers Irom the theoretIcaI amount that wouId
arise using the eective tax rate applicable to prots of the Company and Group as follows:
Group Company
Year ended 31 March Year ended 31 March
2011 2010 2011 2010
Prot/ (loss) before tax 449,700,121 196,285,015 33,894,003 (146,853,263)
Tax calculated at eective tax rate of 35.525% 159,755,968 69,730,252 12,040,845 (52,169,622)
Tax eect of income liable at
concessionary rate (12,137,339) (6,777,645) (2,156,984) -
Tax eect of income not subject to tax (69,836,597) (29,269,544) (16,589,290) (15,770,715)
Tax eect of expenses not deductible 76,195,039 54,268,779 44,326,666 7,962,169
Utilisation of previously unrecognized tax losses (11,822,153) 24,995,491 (12,299,141) 22,997,530
Adjustments in respect of prior years 4,194,832 (359,961) - -
WHT on dividends paid by subsidiaries 3,796,234 4,835,535 - -
Tax eect of adjustments on consolidation 12,813,924 23,780,202 - -
Tax charge 162,959,908 141,203,109 25,322,096 (36,980,638)
9. Earning/ (loss) per share
Basic earnings per share is calculated by dividing the net prot/ (loss) attributable to shareholders by the weighted
average number of ordinary shares in issue during the year.
Group Company
Year ended 31 March Year ended 31 March
2011 2010 2011 2010
Net prot/ (loss) attributable
to shareholders 232,546,843 (4,788,617) 8,571,907 (109,872,625)
Weighted average number of ordinary
shares in issue 59,893,680 59,893,680 59,893,680 59,893,680
Basic earning/ (loss) per share 3.88 (0.08) 0.14 (1.83)
10. Dividend per share
Dividend paid - - - -
Weighted average number of ordinary
shares in issue 59,893,680 59,893,680 59,893,680 59,893,680
Dividend per share - - - -
Notes to the Fi nanci al Statements
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11. Property, plant and equipment
(a) Group
Furniture, ttings
Land and Plant, machinery Equipment, tools and oce Motor
buildings and accessories and implements equipment vehicles Total
At 31 March 2009
Cost / valuation 1,090,542,294 1,271,215,207 95,244,558 88,374,906 71,311,513 2,616,688,478
Accumulated depreciation (58,021,050) (876,467,255) (56,539,262) (58,631,310) (47,205,365) (1,096,864,242)
Net book amount 1,032,521,244 394,747,952 38,705,296 29,743,596 24,106,148 1,519,824,236
Year ended 31 March 2010
Opening net book amount 1,032,521,244 394,747,952 38,705,296 29,743,596 24,106,148 1,519,824,236
Additions 986,243 49,281,626 4,486,069 2,934,283 3,796,339 61,484,560
Revaluation surplus 367,340,918 - - - - 367,340,918
Disposal - cost - - (156,522) - - (156,522)
- depreciation - - 156,522 - - 156,522
Transfer from WIP (Note 12) 790,748 26,334,336 - - - 27,125,084
Depreciation charge (Note 5) (23,695,119) (73,247,908) (5,348,095) (10,042,879) (8,776,336) (121,110,337)
Closing net book amount 1,377,944,034 397,116,006 37,843,270 22,635,000 19,126,151 1,854,664,461
At 31 March 2010
Cost / valuation 1,459,660,203 1,346,831,169 99,574,105 91,309,189 75,107,852 3,072,482,518
Accumulated depreciation (81,716,169) (949,715,163) (61,730,835) (68,674,189) (55,981,701) (1,217,818,057)
Net book amount 1,377,944,034 397,116,006 37,843,270 22,635,000 19,126,151 1,854,664,461
Year ended 31 March 2011
Opening net book amount 1,377,944,034 397,116,006 37,843,270 22,635,000 19,126,151 1,854,664,461
Additions 61,727,985 34,148,962 3,621,057 9,434,259 424,106 109,356,369
Revaluation surplus 71,762,099 - - - - 71,762,099
Transfer from WIP (Note 12) - 25,408,611 - - - 25,408,611
Disposal - cost - - - - (2,010,678) (2,010,678)
- depreciation - - - - 2,010,678 2,010,678
Depreciation charge (note 05) (25,269,586) (72,587,543) (2,570,607) (8,544,401) (8,625,282) (117,597,420)
Closing net book amount 1,486,164,532 384,086,035 38,893,721 23,524,858 10,924,975 1,943,594,120
At 31 March 2011
Cost / valuation 1,593,150,287 1,406,388,742 103,195,162 100,743,448 73,521,280 3,276,998,919
Accumulated depreciation (106,985,755) (1,022,302,706) (64,301,442) (77,218,590) (62,596,305) (1,333,404,799)
Net book amount 1,486,164,532 384,086,035 38,893,721 23,524,858 10,924,975 1,943,594,120
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11. Property, plant and equipment (Contd.)
(b) Company
Furniture, ttings
Land and Plant, machinery Equipment, tools and oce Motor
buildings and accessories and implements equipment vehicles Total
At 31 March 2009
Cost / valuation 630,294,000 669,103,402 9,732,481 52,187,403 38,768,486 1,400,085,772
Accumulated depreciation (17,668,584) (499,661,737) (7,866,713) (34,157,416) (23,854,152) (583,208,602)
Net book amount 612,625,416 169,441,665 1,865,768 18,029,987 14,914,334 816,877,170
Year ended 31 March 2010
Opening net book amount 612,625,416 169,441,665 1,865,768 18,029,987 14,914,334 816,877,170
Additions - 26,995,268 - 1,842,653 432,000 29,269,921
Depreciation charge (note 05) (11,345,306) (25,884,703) (266,430) (8,503,348) (4,964,598) (50,964,385)
Closing net book amount 601,280,110 170,552,230 1,599,338 11,369,292 10,381,736 795,182,706
At 31 March 2010
Cost / valuation 630,294,000 696,098,670 9,732,481 54,030,056 39,200,486 1,429,355,693
Accumulated depreciation (29,013,890) (525,546,440) (8,133,143) (42,660,764) (28,818,750) (634,172,987)
Net book amount 601,280,110 170,552,230 1,599,338 11,369,292 10,381,736 795,182,706
Year ended 31 March 2011
Opening net book amount 601,280,110 170,552,230 1,599,338 11,369,292 10,381,736 795,182,706
Additions 57,719,000 5,363,115 136,362 3,208,218 99,106 66,525,801
Disposals - cost - - - - (715,000) (715,000)
- depreciation - - - - 715,000 715,000
Depreciation charge (note 05) (11,345,306) (25,196,880) (207,357) (3,957,728) (5,005,518) (45,712,789)
Closing net book amount 647,653,804 150,718,465 1,528,343 10,619,781 5,475,324 815,995,717
At 31 March 2011
Cost / valuation 688,013,000 701,461,785 9,868,843 57,238,274 38,584,592 1,495,166,494
Accumulated depreciation (40,359,196) (550,743,320) (8,340,500) (46,618,492) (33,109,268) (679,170,776)
Net book amount 647,653,804 150,718,465 1,528,343 10,619,781 5,475,324 815,995,717
Notes to the Fi nanci al Statements
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11. Property, plant and equipment (Contd.)
(c) Property, plant and equipment include assets at valuation as follows.
Company
Assets Valued on Name of the valuer Valued amount
Land 1 September 2007 Mr. J. M. Senanayaka Bandara 236,962,350
Buildings 1 September 2007 Mr. J. M. Senanayaka Bandara 271,087,650
Plant and equipment 30 June 1977 1,542,100
Group
Assets Valued on Name of the valuer Valued amount
Land
ACL Cables PLC 1 September 2007 Mr. J. M. Senanayaka Bandara 236,962,350
Kelani Cables PLC 31 March 2007 Mr. H. W. Wimalasena 76,900,000
ACL Plastics PLC 20 March 2009 Mr. J. M. Senanayaka Bandara 44,975,000
Ceylon Bulbs and Electricals Limited 25 July 1988 Mr. B. G. Jayathilake 13,674,500
Ceylon Bulbs and Electricals Limited 6 September 2009 Mr. J. M. Senanayaka Bandara 338,125,000
Kelani Cables PLC 31 March 2010 Mr. H. W. Wimalasena 114,500,000
ACL Kelani Magnet Wire (Pvt) Ltd 01 June 2011 Mr. J. M. Senanayaka Bandara 63,562,500
Buildings
ACL Cables PLC 1 September 2007 Mr. J. M. Senanayaka Bandara 271,087,650
Kelani Cables PLC 31 March 2007 Mr. H. W. Wimalasena 75,100,000
ACL Plastics PLC 20 March 2009 Mr. J. M. Senanayaka Bandara 58,025,000
Kelani Cables PLC 31 March 2010 Mr. H. W. Wimalasena 88,500,000
ACL Kelani Magnet Wire (Pvt) Ltd 01 June 2011 Mr. J. M. Senanayaka Bandara 103,944,881
Plant and Machinery
ACL Cables PLC 30 June 1977 1,542,100
(d) If revalued assets were stated on the historical cost basis, the amounts would be as follows:
Company
Cost
at 31 March 2011
Accumulated depreciation
at 31 March 2011
Net book value
at 31 March 2011
Asset
Land 33,367,145 - 33,367,145
Buildings 85,322,918 48,847,576 36,475,342
ACL Cables PLC Annual Report 2010/11
64
11. Property, plant and equipment (Contd.)
Group
Cost
As at 31 March
2011
Accumulated depreciation
As at 31 March 2011
Net book value
As at 31 March
2011
Land
ACL Cables PLC 33,367,145 - 33,367,145
Kelani Cables PLC 8,530,505 - 8,530,505
ACL Plastics PLC 3,478,925 - 3,478,925
Ceylon Bulbs and Electricals Limited 13,970,450 - 13,970,450
Kelani Cables PLC 63,298,505 - 63,298,505
ACL Kelani Magnet Wire (Pvt) Ltd 38,227,530 - 38,227,530
Buildings
ACL Cables PLC 85,322,918 48,847,576 36,475,342
Kelani Cables PLC 28,397,188 14,026,461 14,370,727
ACL Plastics PLC 35,312,748 17,493,989 17,818,759
Kelani Cables PLC 33,594,356 14,288,919 19,305,437
ACL Kelani Magnet Wire (Pvt) Ltd 57,517,751 11,440,913 46,076,838
(e) The initial costs of fully depreciated property, plant and equipment which are still in use at the
balance sheet date are as follows;
As at 31 March 2011 As at 31 March 2010
ACL Cables PLC 476,876,145 452,489,518
ACL Plastics PLC 57,351,806 54,092,407
Kelani Cables PLC 257,625,814 233,911,659
Ceylon Bulbs & Electricals Limited 14,064,546 14,064,546
ACL Kelani Magnet Wire (Pvt) Limited 537,818 397,420
(f) Group motor vehicles include the following amounts where the Group is a lessee under a nance lease.
As at 31 March 2011 As at 31 March 2010
Cost - Capitalized nance lease 2,000,000 2,000,000
Accumulated depreciation (1,100,000) (700,000)
Net book amount 900,000 1,300,000
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
65
12. Work in progress
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Balance at 1 April 102,233,873 107,214,830 41,081,510 24,834,814
Cost incurred during the year 56,400,357 22,144,127 65,317,884 16,246,696
Amount transferred to property,
plant and equipment (Note 11) (25,408,611) (27,125,084) - -
Balance at 31 March 133,225,619 102,233,873 106,399,394 41,081,510
13. Investment property
Group
As at 31 March
2011 2010
Balance at 1 April 120,000,000 120,000,000
Change in fair value of investment property (Note 5) 5,000,000 -
Balance at 31 March 125,000,000 120,000,000
Investment property represents the land owned by the Group and situated in Ekala. The value was determined on fair
value basis using market evidence.
A valuation was carried out by an independent professional valuer, Mr H. W. Wimalasena, an Associate Member of
Valuers of Sri Lanka, as at 31 March 2011. The change in fair value of investment property of Rs. 5,000,000 was
credited to income statement. The fair value of investment property as at 31 March 2011 is Rs. 125,000,000.
14. Intangible assets
Group
As at 31 March
2011 2010
Balance at 1 April 38,945,423 38,945,423
Balance at 31 March 38,945,423 38,945,423
Accumulated amortization
Balance at 1 April 32,951,721 32,951,721
Balance at 31 March 32,951,721 32,951,721
Net book amount 5,993,702 5,993,702
ACL Cables PLC Annual Report 2010/11
66
14. Intangible assets (Contd.)
Goodwill arising on consolidation of subsidiaries is as follows;
Year Subsidiary Company Goodwill on consolidation
1994/95 ACL Plastics PLC 6,090,495
1995/96 Lanka Olex Cables (Private) Limited and Kelani Cables PLC 26,035,049
1997/98 Ceylon Bulbs and Electricals Limited 459,455
2004/05 ACL Kelani Magnet Wire (Private) Limited 916,805
2006/07 Ceylon Bulbs and Electricals Limited 5,441,533
2007/08 Ceylon Bulbs and Electricals Limited 2,086
Goodwill arising from business combinations after 1 June 2005, is no longer amortized but tested for impairment
annually as per SLAS 25 (Revised 2005).
Negative goodwill arising on consolidation of subsidiaries is as follows;
Year Subsidiary Company Negative goodwill on
consolidation
1998/99 ACL Plastics PLC 5,127,592
1999/00 Lanka Olex Cables (Private) Limited and Kelani Cables PLC 17,502,019
1999/00 Ceylon Bulbs and Electricals Limited 1,738
2009/10 Ceylon Bulbs and Electricals Limited 6,265,098
Negative goodwill arising from business combinations after 1 June 2005, is no longer amortized but credited to
Income Statement fully in the year of acquisition.
15. Leasehold properties
Group
As at 31 March
2011 2010
Balance at 1 April 1,842,582 1,864,517
Amortisation during the year (Note 5) (21,935) (21,935)
Balance at 31 March 1,820,647 1,842,582
Amount to be amortised within one year 22,203 21,935
Amount to be amortised after one year 1,798,444 1,820,647
1,820,647 1,842,582
Property on operating lease : Victoria Golf Course and Country Resort in Kandy
Land extent : R 01 - P9
Lease period : 92 years from 24 January 2002
Lease rentals
from 2002 to 2011 : Rs 21,935 per annum
from 2012 to 2094 : Rs 22,203 per annum
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
67
16. Investment in subsidiaries
Company
As at 31 March 2011 As at 31 March 2010
Number of
Shares
Cost Market
Value
Number of
Shares
Cost Market
Value
Quoted
ACL Plastics PLC 2,746,969 33,300,217 447,755,947 2,746,969 33,300,217 323,455,600
Kelani Cables PLC 933,756 10,752,498 88,986,947 933,756 10,752,498 106,915,062
Total investment in quoted
companies 44,052,715 536,742,894 44,052,715 430,370,662
Unquoted
Ceylon Bulbs and Electricals
Limited
1,051,345 58,514,700 1,051,345 58,514,700
Lanka Olex Cables (Private)
Limited
A Class ordinary shares
B Class ordinary shares
Preference shares
99
3,065,610
161,818
291,180,491
99
3,065,610
161,818
291,180,491
ACL Kelani Magnet Wire
(Private) Limited 11,950,000 119,500,000 11,950,000 119,500,000
ACL Metals and Alloys
(Private) Limited 2,500,000 25,000,000 2,500,000 25,000,000
Total investment in un-
quoted companies 494,195,191 494,195,191
Total cost of investments in
subsidiaries 538,247,906 538,247,906
ACL Cables PLC acquired the controlling interest in Lanka Olex Cables (Private) Limited in October 1999. Kelani Cables
PLC and Kelani Electrical Accessories (Private) Limited are subsidiaries of Lanka Olex Cables (Private) Limited.
The percentages of ownership held by the Company in each quoted and un-quoted subsidiary as at balance sheet date
are as follows;
As at 31 March
2011
As at 31 March
2010
Quoted
ACL Plastics PLC 65.20% 65.20%
Kelani Cables PLC 79.30% 79.30%
Unquoted
Ceylon Bulbs and Electricals Limited 95.30% 94.87%
Lanka Olex Cables (Private) Limited
A Class ordinary shares 99% 99%
B Class ordinary shares 100% 100%
Preference shares 100% 100%
ACL Kelani Magnet Wire (Private) Limited 93.79% 93.79%
ACL Metals and Alloys (Private) Limited 100% 100%
ACL Cables PLC Annual Report 2010/11
68
17. Investment in other companies
Company
As at 31 March 2011 As at 31 March 2010
Number
of shares
Cost Market
Value
Number of
shares
Cost Market
Value
Banking nance and
insurance
Merchant Bank of Sri Lanka PLC 18,379 1,546,083 849,110 18,379 1,546,083 358,391
Nations Trust Bank PLC 4,653 450,173 1,406,362 18,613 221,215 642,149
-Share warrants - 2010 - - - 4,653 46,530 37,224
-Share warrants - 2011 - - - 2,326 23,260 18,608
Chemicals and
pharmaceuticals
Chemical Industries
(Colombo) PLC
- - - 432 2,976 29,376
Land and properties
Kelsey Development PLC - - - 1,687 29,163 21,931
Colombo Fort Land and
Building Co. PLC - - - 14 252 924
Beverage, food and
tobacco
Ceylon Tobacco Co. PLC - - - 1,862 39,585 465,966
Footwear and textiles
Asian Cotton Mills PLC - - - 67 1,938 2,546
Manufacturing
Chevron Lubricants Lanka PLC - - - 55,200 5,236,144 9,273,600
Telecommunication
Dialog Telekom PLC 390,000 4,142,633 4,095,000 - - -
Diversied holdings
John Keells Holdings PLC 11,819 857,542 3,375,506 11,819 857,542 2,174,696
Walker and Greig PLC 130,700 13,249,918 10,103,110 - - -
Trading
Singer (Sri Lanka) PLC - - - 332 6,185 6,284
Motors
United Motors (Lanka) PLC 71 - 10,806 71 - 6,284
Total cost of investments by
the Company
20,246,349 18,990,784 8,010,872 13,037,979
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
69
17. Investment in other companies (Contd.)
Investments by subsidiary companies
As at 31 March 2011 As at 31 March 2010
Number
of shares
Cost Market
Value
Number of
of shares
Cost Market
Value
Banking, nance and
insurance
NDB Bank PLC - - - 22,500 4,005,229 4,725,000
Asia Capital PLC - - - 20,000 294,112 260,000
Nations Trust Bank PLC 25,592 512,005 1,952,670 23,266 407,335 814,310
- Share warrants - 2011 - - - 2,326 23,260 81,410
DFCC Bank PLC 13 2,300 2,233 13 2,000 2,346
Plantation
Maskeliya Plantations PLC 8,200 374,258 230,420 8,200 374,258 243,950
Watawala Plantations PLC 20,000 1,252,041 500,000 20,000 1,252,041 3,520,000
Hapugastenna Plantations PLC - - - 5,000 233,275 190,000
Kegalle Plantations PLC - - - 20,000 1,014,000 940,000
Kotagala Plantations PLC 10,000 476,580 1,680,000 10,000 476,580 447,500
Diversied holdings
Hayleys PLC 38,907 2,952,614 14,866,365 96,268 7,305,684 21,660,300
Total cost of investments by
subsidiaries 5,569,798 19,231,688 15,387,774 32,884,816
Total cost of investment
by Group 25,816,147 38,222,473 23,398,646 45,922,793
18. Inventories
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Raw materials 1,130,219,311 734,693,742 783,833,295 500,269,937
Work-in-progress 685,720,660 519,956,056 431,191,229 256,232,439
Finished goods 1,325,414,628 1,279,377,259 724,879,432 717,963,243
Goods in transit 176,768,141 174,917,236 157,483 -
Other stocks 163,653,465 134,798,868 78,539,902 59,903,600
3,481,776,206 2,843,743,161 2,018,601,341 1,534,369,218
Provision for obsolete stock [18.(i)] (67,115,197) (62,381,648) (30,000,000) (30,000,000)
Net book amount 3,414,661,009 2,781,361,513 1,988,601,341 1,504,369,218
18. (i) Provision for obsolete stock
Balance at 1 April 62,381,648 56,810,372 30,000,000 30,000,000
Provision during the year 4,733,549 5,571,276 - -
Balance at 31st March 67,115,197 62,381,648 30,000,000 30,000,000
ACL Cables PLC Annual Report 2010/11
70
19. Receivables and pre-payments
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Trade receivables 2,325,033,941 1,759,754,057 1,310,789,146 857,267,049
Provision for doubtful debts [Note 19 (i)] (130,219,913) (118,325,227) (79,994,761) (70,000,000)
2,194,814,028 1,641,428,830 1,230,794,385 787,267,049
Receivable from related
companies [Note 35.9 (b)] - - 139,832,144 64,527,999
Loan given to related
companies [Note 35.9 (c)] - - 32,075,221 63,259,924
Advance and pre-payments 33,384,949 26,129,250 19,075,072 18,834,652
Other receivables 685,703,499 593,863,464 502,936,019 372,119,623
2,913,902,476 2,261,421,544 1,924,712,841 1,306,009,247
Value of book debts of ACL Cables PLC and Kelani Cables PLC have been pledged as security for bank facilities obtained.
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
19. (i) Provision for doubtful debts
Balance at 1 April 118,325,227 66,003,054 70,000,000 40,000,000
Provision for the year 13,622,914 52,322,173 9,994,761 30,000,000
Debts written-o (1,728,228) - - -
Balance at 31 March 130,219,913 118,325,227 79,994,761 70,000,000
20. Cash and cash equivalents
Cash at bank and in hand 304,862,658 340,753,935 26,460,900 22,022,707
Short term deposits 77,229,219 544,128,188 206,908,168 537,160,888
382,091,877 884,882,123 233,369,068 559,183,594
For the purposes of the cash ow statement, the year end cash and cash equivalents comprise the following:
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Cash and cash equivalents 382,091,877 884,882,123 233,369,068 559,183,594
Bank overdraft (Note 22) (666,442,008) (785,024,465) (345,380,951) (389,001,083)
(284,350,131) 99,857,658 (112,011,883) 170,182,511
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
71
21. Trade and other payables
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Trade payables 987,799,650 357,814,248 563,151,521 13,990,991
Payables to related parties [Note 35.9 (a)] - - 577,837,162 223,584,975
Loans from related parties [Note 35.9 (d)] - - 123,193,100 123,193,100
Accrued expenses and other payable 216,404,752 167,187,475 111,360,786 99,091,380
1,204,204,402 525,001,723 1,375,542,569 459,860,446
22. Borrowings
Long term borrowings
Interest bearing loans 300,000,000 400,000,000 300,000,000 400,000,000
300,000,000 400,000,000 300,000,000 400,000,000
Short term borrowings
Bank borrowings 366,666,667 457,590,152 366,666,667 222,884,147
Short term loans 1,546,784,643 1,272,119,199 852,181,134 939,043,638
Bank overdraft (Note 20) 666,442,008 785,024,465 345,380,951 389,001,083
2,579,893,318 2,514,733,816 1,564,228,751 1,550,928,868
Group long term borrowings are secured by a xed deposit amounting to USD 260,000.
23. Finance lease obligation
Lease liabilities are eectively secured as the rights to the leased assets revert to the lessor in the event of default.
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Gross nance lease liabilities 1,947,935 1,947,935 1,947,935 1,947,935
Future nance charge on nance lease (631,764) (478,145) (631,764) (478,145)
Present value of nance lease liabilities 1,316,171 1,469,790 1,316,171 1,469,790
Present value of nance lease liabilities
No later than 1 year 776,110 489,095 776,110 489,095
Later than 1 year 540,061 980,695 540,061 980,695
1,316,171 1,469,790 1,316,171 1,469,790
ACL Cables PLC Annual Report 2010/11
72
24. Income tax payable
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Balance at 1 April 240,785,758 177,567,016 51,829,742 117,158,474
Provision for the current year (Note 8) 156,193,922 175,014,780 20,684,278 -
Under/ (over) provision in respect
of previous years (Note 8) 4,194,832 (359,961) - -
401,174,512 352,221,835 72,514,020 117,158,474
Payments made during the year (263,354,901) (111,436,077) - (65,328,732)
Balance at 31 March 137,819,611 240,785,758 72,514,020 51,829,742
25. Provision for payment in lieu of employee share issue scheme
Group
As at 31 March
2011 2010
Balance at 1 April 2,920,369 3,098,880
Payments made during the year (145,040) (178,511)
Balance at 31 March 2,775,329 2,920,369
In view of the transfer of ownership from Pacic Dunlop Cables Group to ACL Group, the employees were allocated a
xed sum as compensation for the share ownership scheme which was proposed earlier. The employees who were in
employment as at 11 September 1999 are eligible for the payment which will be made at the time of resignation or
retirement.
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
73
26. Dened benet obligations
The amounts recognized in the balance sheet are determined as follows:
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Balance at 1 April 124,859,610 100,902,792 86,970,681 69,009,608
Current service cost/(reversal of
excess provision) (Note 6) 28,716,407 29,177,872 16,716,070 21,475,613
153,576,017 130,080,664 103,686,751 90,485,221
Payments made during the year (8,777,182) (5,221,054) (3,950,896) (3,514,540)
Balance at 31 March 144,798,835 124,859,610 99,735,854 86,970,681
The Company maintains a non-contributory dened benet plan providing for gratuity benets payable to employees
expressed in term of nal monthly salary and service.
As at 31 March 2011, the gratuity liability was actuarially valued under the Projected Unit Credit (PUC) method by a
professionally qualied actuary rm, Actuarial & Management Consultants (Private) Limited.
The key assumptions used by the actuary include the following :
Group/ Company
As at 31 March
2011 2010
Rate of discount 11% 12%
Salary increment rate 10% 10%
Retirement age 55 years 55 years
27. Deferred income tax
Deferred income taxes are calculated on temporary dierences under the liability method using a principal tax rate of
28% (2010 - 35%).
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Deferred tax liability
Balance at 1 April 52,482,993 82,901,375 3,110,592 40,091,230
Charge /(reversal) during the year (Note 8) (1,225,080) (38,287,246) 4,637,818 (36,980,638)
Tax eect on surplus on revaluation reserve 2,489,926 8,191,605 - -
Deferred tax on transfer from
retained earnings (254,377) (322,741) - -
Balance on 31 March 53,493,462 52,482,993 7,748,410 3,110,592
ACL Cables PLC Annual Report 2010/11
74
28. Contingent Liabilities
Company
The Company has guaranteed a credit facility of Rs 24 Mn obtained by Ceylon Bulbs and Electricals Limited from
Hatton National Bank PLC.
The Company has guaranteed a credit facility of USD 2 Mn obtained by ACL Kelani Magnet Wire (Pvt) Ltd from
Standard Chartered Bank.
The Company has guaranteed a credit facility of Rs 375 Mn obtained by ACL Metal and Alloys (Private) Limited from
Standard Chartered Bank.
Group
Kelani Cables PLC has given guarantees to third parties amounting to Rs. 106.5 Mn.
29. Commitments
Financial commitments
There were no material nancial commitments outstanding at the balance sheet date.
Capital commitments
There were no material capital commitments outstanding at the balance sheet date.
30. Stated capital
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Number of ordinary shares issued
and fully paid
Balance at 31 March 59,893,680 59,893,680 59,893,680 59,893,680
Stated capital
Balance at 1 April 299,488,400 299,488,400 299,488,400 299,488,400
Balance at 31 March 299,488,400 299,488,400 299,488,400 299,488,400
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
75
31. Capital reserve
Capital reserve comprises prot on sale of property, plant, equipment and investments, Capital Redemption Reserve
Fund (CRRF) created consequent to redemption of shares and revaluation surplus arising from net surplus on
revaluation of property, plant and equipment.
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Balance at 1 April 2010 799,786,664 441,223,100 330,855,735 330,855,735
Revaluations during the year 67,305,675 367,340,918 - -
Deferred tax on revaluation (3,030,183) (8,191,605) - -
Transfer to retained earnings from
revaluation reserve (908,490) (908,490) - -
Deferred tax on transfer 165,854 322,741 - -
Balance on 31 March 2011 863,319,519 799,786,664 330,855,735 330,855,735
Group capital reserve as at balance sheet date consists of the following;
Group
As at 31 March
2011 2010
Capital redemption reserve fund 2,625,000 2,625,000
Surplus on revaluation of property, plant
and equipment 858,883,999 795,351,146
Prot on sale of property, plant,
equipment and investments 1,810,518 1,810,518
863,319,517 799,786,664
32. General reserve
General reserve consists of such amounts that have been from time to time transferred from retained earnings as
resolved at General Meetings of the Company/ Group for general applications.
Group Company
As at 31 March As at 31 March
2011 2010 2011 2010
Balance at 1 April 1,123,825,080 1,123,825,080 680,265,800 680,265,800
Transferred from retained earnings - - - -
Balance at 31 March 1,123,825,080 1,123,825,080 680,265,800 680,265,800
ACL Cables PLC Annual Report 2010/11
76
33. Cash generated from/ (used in) operations
Reconciliation of prot/ (loss) before tax to cash generated from/ (used in) operations:
Group Company
Year ended 31 March Year ended 31 March
2011 2010 2011 2010
Prot/ (loss) before tax 449,700,121 196,285,015 33,894,003 (146,853,263)
Adjustments for:
Depreciation of property, plant
and equipment (Note 11) 117,597,420 121,110,337 45,712,789 50,964,385
Dividend income (Note 4) (944,772) (1,971,295) (30,578,782) (39,923,684)
Interest expense 243,348,683 281,051,647 180,331,128 207,827,579
Interest income (Note 7) (16,593,492) (11,244,423) (8,127,299) (3,726,414)
Negative goodwill on acquisition of
minority shares (Note 4) - (6,265,098) - -
Change in fair value of investment
property (Note 13) (5,000,000) - - -
Prot on disposal of property, plant
and equipment (Note 4) (1,285,871) (35,714) (413,550) -
Prot on disposal of investment (Note 4) (30,356,369) - (14,440,202) -
Amortization of leasehold
properties (Note 15) 21,935 21,935 - -
Changes in working capital:
Inventories (633,299,496) (700,142,380) (484,232,122) (271,108,093)
Receivables and pre-payments (652,480,931) 145,493,342 (618,703,594) 284,518,235
Trade and other payables 679,202,679 (148,204,018) 915,528,504 35,413,739
Dividend payable 48,220 - - -
Dened benet obligations (Note 26) 28,716,407 29,177,872 16,716,070 21,475,613
Cash generated from/ (used in)
operations 178,674,533 (94,722,781) 35,686,945 138,588,095
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
77
34. Segment information
34. (a) Business segment information
Manufacturing Manufacturing Manufacturing Total Total
Cables PVC Compounds Rods
2011 2011 2011 2011 2010
Revenue
Total revenue 9,611,650,110 843,079,352 249,118,306 10,703,847,768 8,573,755,218
Inter-segment sales (131,203,263) (753,755,084) (249,118,306) (1,134,076,653) (1,330,807,860)
External sales 9,480,446,847 89,324,268 - 9,569,771,115 7,242,947,358
Results
Prot before other income and nance cost 413,892,077 105,516,463 106,632,802 626,041,342 436,199,346
Other income 33,725,627 16,688,343 - 50,413,970 19,262,615
Finance cost (219,684,644) 362,542 (7,433,089) (226,755,191) (263,773,049)
Taxation (111,825,229) (47,257,584) (3,877,095) (162,959,908) (136,607,006)
Prot after taxation 286,740,213 55,081,906
Assets
Segment assets 8,174,818,328 290,824,822 116,264,075 8,581,907,225 7,699,558,274
Un-allocated corporate assets 364,198,372 336,240,170
Total assets 8,946,105,597 8,035,798,444
Liabilities
Segment liabilities 4,057,424,153 281,076,383 83,046,039 4,421,546,575 3,496,608,692
Un-allocated corporate liabilities 7,500,981 370,343,574
Total liabilities 4,429,047,556 3,866,952,266
Capital expenditure
Segment capital expenditure 157,510,496 1,827,636 6,418,594 165,756,725 230,947,485
Total capital expenditure 165,756,725 230,947,485
Depreciation and amortization
Segment depreciation 102,228,292 8,811,496 6,557,632 117,597,420 121,110,337
Total depreciation and amortization 117,597,420 121,110,337
34. (b) Geographical segment information
Geographical segment turnover is given in note 3.(i).
ACL Cables PLC Annual Report 2010/11
78
35. Directors interests in contracts and related party transactions
35.1 Mr. U. G. Madanayake, Mr. Suren Madanayake, Dr. S. K. Madanayake and Mrs. N. C. Madanayake who are
Directors of the Company, are also Directors of ACL Plastics PLC which is a 65.2% owned subsidiary of ACL
Cables PLC.
35.2 Mr. U. G. Madanayake, Mr. Suren Madanayake, Dr. S. K. Madanayake and Mrs. N. C. Madanayake who are
Directors of the Company are also the Directors of Lanka Olex Cables (Private) Limited which is a 100% owned
subsidiary of ACL Cables PLC.
35.3 Mr. U. G. Madanayake, Mr. Suren Madanayake, Dr. S. K.Madanayake, Mrs. N. C. Madanayake and Mr. Hemantha
Perera who are Directors of the Company are also the Directors of Kelani Cables PLC which is a 79.2% owned
subsidiary of ACL Cables PLC.
35.4 Mr. U. G. Madanayake, Mr. Suren Madanayake and Mr. Hemantha Perera who are Directors of the Company
are also the Directors of ACL Kelani Magnet Wire (Private) Limited which is a 93.79% owned subsidiary of ACL
Cables PLC.
35.5 Mr. U. G. Madanayake and Mr. Suren Madanayake who are Directors of the Company are also the Directors of
ACL Metals and Alloys (Private) Limited which is a 100% owned subsidiary of ACL Cables PLC.
35.6 Mr. U. G. Madanayake and Mr. Suren Madanayake who are Directors of the Company are also the Directors of
ACL Polymers (Private) Limited which is a 65.2% owned subsidiary of ACL Cables PLC.
35.7 Mr U. G. Madanayake, Mr. Suren Madanayake and Mrs. N. C. Madanayake who are Directors of the Company
are also the directors of Ceylon Bulbs and Electricals Limited which is a 95.3% owned subsidiary of ACL Cables
PLC.
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
79
35.8 The Company had the following business transactions in the ordinary course of business during the year:
Company
Year Ended 31 March
2011 2010
(a) Sales of goods
Kelani Cables PLC 93,777,845 62,695,342
ACL Metal and Alloys (Private) Limited 10,257,088 15,430,641
ACL Plastics PLC 41,476 -
104,076,409 78,125,983
(b) Purchase of goods & services
ACL Plastics PLC 503,577,684 325,028,498
Kelani Cables PLC 47,345,863 20,002,400
Ceylon Bulbs and Electricals Limited 1,371,429 1,498,844
ACL Metal and Alloys (Private) Limited 249,118,306 551,693,323
801,413,282 898,223,065
(c) Loans to / (settlement by) related party
ACL Metal and Alloys (Private) Limited (31,184,703) -
(31,184,703) -
(d) Loans from related party
ACL Plastics PLC - 16,000,000
- 16,000,000
(e) Interest on loans from related party
ACL Plastics PLC 4,304,912 3,939,425
Kelani Cables PLC 3,232,170 4,541,154
ACL Polymers (Private) Limited 1,930,625 1,863,360
9,467,707 10,343,939
(f) Key management compensation
Group Company
Year ended 31 March Year ended 31 March
2011 2010 2011 2010
Short term benets 26,063,333 20,557,667 16,900,000 13,440,000
26,063,333 20,557,667 16,900,000 13,440,000
ACL Cables PLC Annual Report 2010/11
80
35.9 Balances arising from the above related party transactions as at the balance sheet date are as follows;
Company
As at 31 March
2011 2010
(a) Payable to related parties
Kelani Cables PLC 33,685,621 5,336,508
ACL Metal and Alloys (Private) Limited 252,098,010 150,542,580
ACL Polymers (Private) Limited 452,500 503,757
ACL Plastics PLC 291,601,031 66,822,870
Ceylon Bulbs and Electricals Limited - 379,260
577,837,162 223,584,975
(b) Receivable from related parties
Kelani Cables PLC 63,758,412 27,266,288
ACL Kelani Magnet Wire (Private) Limited 62,872,974 21,394,522
Ceylon Bulbs and Electricals Limited 7,283,066 7,253,730
ACL Plastics PLC 3,521,481 2,662,161
ACL Metal and Alloys (Private) Limited 2,396,210 5,951,298
139,832,144 64,527,999
(c) Receivable on loans
ACL Metal and Alloys (Private) Limited - 31,184,703
ACL Kelani Magnet Wire (Private) Limited 32,075,221 32,075,221
32,075,221 63,259,924
(d) Payable on loans
Kelani Cables PLC 41,854,000 41,854,000
ACL Plastics PLC 55,745,056 55,745,056
ACL Polymers (Private) Limited 25,000,000 25,000,000
Lanka Olex Cables (Private) Limited 594,044 594,044
123,193,100 123,193,100
There were no other related parties or related party transactions during the year ended 31 March 2011 other than
those disclosed above.
Notes to the Fi nanci al Statements
ACL Cables PLC Annual Report 2010/11
81
36. Comparative information
Comparative information in nancial statements have been restated as follows.
(a) Recognition of previously unrecognized deferred tax liability amounting to Rs. 7,309,087 of ACL Kelani Magnet
Wire (Private) Limited. Liability was allocated as follows:
- Retained earnings (Rs) 6,855,193
- Minority interest (Rs) 453,894
37. Post balance sheet events
No circumstances have arisen since the balance sheet date, which would require adjustments to, or disclosure in the
nancial statements.
ACL Cables PLC Annual Report 2010/11
82
I nformati on to Sharehol ders
(a) Distribution of shareholders as at 31st March 2011.
Number of Number of % of
Share range shareholders ordinary shares holding
01 to 1,000 1,655 575,871 0.96%
1,001 to 5,000 555 1,440,385 2.41%
5,001 to 10,000 130 1,031,232 1.72%
10,001 to 50,000 121 2,665,897 4.45%
50,001 to 100,000 27 2,008,029 3.35%
100,001 to 500,000 27 5,445,222 9.09%
500,001 to 1,000,000 3 2,059,420 3.44%
Over 1,000,000 8 44,667,624 74.58%
Total 2,526 59,893,680 100.00%
(b) Analysis report of shareholders as at 31st March 2011.
Number of shares % of holding
Institutional 13,859,356 23.14%
Individuals 46,034,324 76.86%
Total 59,893,680 100.00%
(c) Market and other information.
31 March 2011 31 March 2010
Company
a) Earnings per share (Rs.) 0.14 (1.83)
b) Dividends per share (Rs.) - -
c) Net assets value per share (Rs.) 36.97 36.83
d) Market value per share
- Highest value (Rs.) 97.00 86.25
- Lowest value (Rs.) 85.50 75.00
- Value as at the end of nancial year (Rs.) 94.00 75.00
e) Number of trades 1,866 4,445
f) Total number of shares traded 3,375,700 6,019,300
g) Total turnover (Rs.) 308,833,870 485,738,050
h) Percentage of shares held by the public 36.70% 36.70%
i) Number of foreign shareholders 41 51
Consolidated
a) Earnings per share (Rs.) 3.88 (0.08)
b) Net assets value per share (Rs.) 75.68 69.85
ACL Cables PLC Annual Report 2010/11
83
(d) Twenty largest share holders list as at 31 March 2011.
Share Holder Name As at 31/03/2011 As at 31/03/2010
No. Shares % No. Shares %
1. Madanayake U. G. 22,642,116 37.80 22,642,116 37.80
2. Madanayake H. A. S. 13,302,396 22.21 13,302,396 22.21
3. Employees Provident Fund 2,769,612 4.62 3,228,712 5.39
4. Sri Lanka Insurance
Corporation Ltd-Life Fund 2,423,800 4.05 2,188,900 3.65
5. National Savings Bank 1,276,200 2.13 495,300 2.28
6. Employees Trust Fund Board 1,221,400 2.04 1,366,000 1.72
7. Madanayake N. C. 1,032,100 1.72 1,032,100 1.28
8. Fab Foods (Private) Limited 767,520 1.28 767,520 1.28
9. Deutsche Bank AG
National Equity Fund 750,000 1.25 325,000 0.54
10. Bank of Ceylon - No2 A/C 541,900 0.90 364,000 0.74
11. Deutsche Bank AG as
Trustee for Namal Acuity 500,000 0.83 500,000 0.83
12. David Peiris Motor Company Ltd. 353,000 0.59 - -
13. Perera R. D. M. 350,932 0.59 350,932 0.59
14. Sir Cyril De Zoysa Trust 341,036 0.57 341,036 0.54
15. Commercial Bank of Ceylon PLC/
Mr. G. Ramanan 303,300 0.51 - 0.00
16. Seylan Bank Ltd/ G. Ramanan 286,000 0.48 - 0.00
17. Waldock Mackenzie Ltd -
Line Trading (Pvt) Ltd #2037 247,600 0.41 - 0.00
18. AVIVA NDB Insurance A/c No 7 228,100 0.38 - 0.00
19. Waldock Mackenzie Ltd-Hi Line Towers 209,500 0.35 - 0.00
20. AVIVA NDB Insurance A/c No 3 200,600 0.33 192,600 0.32
ACL Cables PLC Annual Report 2010/11
84
Trading Results
Year Ended 31st March 31st March 31st March 31st March 31st March
2011 2010 2009 2008 2007
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Turnover 9,569,771 7,242,947 7,838,591 8,773,581 7,820,083
Prot before tax 449,700 196,285 161,408 524,295 1,368,196
Taxation (162,960) (141,203) (3,348) (200,293) (484,293)
Prot after tax 286,740 55,082 158,060 324,002 883,903
Balance Sheet
As At 31st March 31st March 31st March 31st March 31st March
2011 2010 2009 2008 2007
Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Stated capital 299,488 299,488 299,488 299,488 299,488
Capital reserve 863,320 799,787 441,223 404,712 151,048
Revenue reserve 2,846,933 2,621,254 2,625,133 2,524,758 2,336,043
4,009,741 3,720,529 3,365,844 3,228,958 2,786,579
Minority interest 507,317 455,626 426,976 386,796 374,917
Non-current liabilities 501,608 573,934 202,317 327,748 350,649
5,018,666 4,750,089 3,995,137 3,943,502 3,512,145
Property, plant &
equipment 1,943,594 1,854,665 1,519,824 1,359,273 918,058
Leasehold properties
- pre-payments 1,798 1,820 1,842 1,864 1,886
Capital work in progress 133,226 102,235 107,215 65,842 152,147
Intangible assets 5,993 5,993 5,993 5,993 5,993
Investment property 125,000 120,000 120,000 104,000 104,000
Investments 25,816 23,398 23,185 23,732 23,499
Current assets 6,710,678 5,927,687 5,096,844 6,356,635 5,214,013
Current liabilities (3,927,440) (3,285,709) (2,879,766) (3,973,837) (2,907,450)
Capital employed 5,018,666 4,750,089 3,995,137 3,943,502 3,512,145
Fi ve Year Summary - Group
ACL Cables PLC Annual Report 2010/11
85
Gl ossary of Fi nanci al Terms
Accounting Policies
The specic principles, bases, conventions,
rules and practices adopted by an enterprise
in preparing and presenting Financial
Statements.
Amortization
The systematic allocation of the depreciable
amount of an intangible asset over its useful
life.
Basic Earnings Per Share
Prots attributable to ordinary shareholders
divided by the weighted average number of
ordinary shares in issue during the year.
Borrowings
All interest bearing liabilities.
Capital Employed
Total equity, minority interest and interest
bearing borrowings.
Capital Reserves
Reserves identied for specic purposes and
considered not available for distribution.
Cash Equivalents
Liquid investments with original maturity
period of three months or less.
Contingent Liability
A possible obligation that arises from past
events and whose existence will be conrmed
only by the occurrence or non-occurrence
of one or more uncertain future events not
wholly within control of the enterprise.
Credit Rating
An evaluation of a corporates ability to
repair its obligations or the likelihood of not
defaulting, carried out by an independent
rating agency.
Corporate Governance
The process by which corporate entities
are governed. It is concerned with the
way in which power is exercised over the
management and direction of the entity,
the supervision of executive action and
accountability to owners and others.
Current Ratio
Current assets divided by current liabilities. A
measure of liquidity.
Debt /Equity
Debt as a percentage of total equity less
minority interest if any.
Deferred Taxation
The tax eect of temporary dierences
deferred to/from another period, which
would only qualify for inclusion on a tax
return at a future date.
Earnings Per Ordinary Share (EPS)
Prots attributable to ordinary shareholders
divided by the weighted average number of
ordinary shares in issue during the year.
Eective Tax Rate
Income tax expenses divided by prot from
ordinary activities before tax.
Equity
Shareholders funds.
Dividends
Distribution of prots to holders of equity
investment.
Dividend Cover
Prot attributable to ordinary shareholders
divided by dividend. Measures the number
of times dividend is covered by distributable
prot.
ACL Cables PLC Annual Report 2010/11
86
Dividend Yield
Dividend per share as a percentage of
the market price. A measure of return on
investment
Gearing
Proportion of total interest bearing
borrowings to capital employed.
Interest Cover
Prot before tax plus net nance cost divided
by net nance cost. Measure of an entitys
debt service ability.
Market Capitalization
Number of shares in issue multiplied by the
market value of a share at the report date.
Net Assets Per Share
Shareholders funds divided by the weighted
average number of ordinary shares in issue. A
basis of share valuation.
Net Worth
Total equity less minority interest if any.
Operating Prot
Prot before tax, share of prot of associates
and net nance cost.
Price Earnings Ratio
Market price of a share divided by earnings
per share as reported at that date.
Prudence
Inclusion of a degree of caution in the
exercise of judgment needed in making
the estimates required under conditions of
uncertainty, such that assets or income are
not overstated and liabilities or expenses are
not understated.
Related Parties
Parties who could control or signicantly
inuence the nancial and operating policies
of the business.
Return on Equity
Prot before tax divided by total equity less
minority interest if any.
Return on Total Assets
Prot before tax plus nance cost divided by
total average assets.
Revenue Reserves
Reserves considered as being available for
distribution and investments.
Segments
Constituent business units grouped in terms
of similarity of operations.
Stated Capital
The total amount received by the Company or
due and payable to the Company in respect
of issue and calls of shares are referred to as
stated capital.
Value Addition
The quantum of wealth generated by the
activities of the Group measured as the
dierence between turnover and the cost of
material and services bought in.
Working Capital
Capital required to nance day-to-day
operations computed as the excess of current
assets over current liabilities.
Gl ossary of Fi nanci al Terms
ACL Cables PLC Annual Report 2010/11
87
Mi l estones
1962
In March 1962, Associated Motorways Ltd (AMW) incorporated Associated Cables Ltd as a
Subsidiary for the manufacture of electric cables.
1963
Within a period of one year, manufacture of electric cables commenced in Sri Lanka for the rst
time with Japanese technical assistance within the AMW Industrial complex at Kalutara.
1976
The Company became a public quoted company under the rules of Colombo Brokers Association.
1978
Facilities for drawing of Copper wires were added.
1980
The Company moved out of AMW Group.
Aluminum Conductor plant was set up for the manufacture of AAC and ACSR.
1981
Joint Venture with Aluminum Industries Ltd, India for the manufacture of 1400 M/Ts of Aluminium
conductors.
1982
Establishment of own distribution network island wide.
1986
Production of Armoured cable commenced at Piliyandala Factory.
1988
Company entered into a technical collaboration agreement with Nokia Cables Finland, for
manufacturing of Aerial Bundled Cables and XLPE Insulated Cables.
1990
The name of the Company was changed from Associated Cables Ltd. to ACL Cables Ltd, in order to
establish an independent identity for the Company.
ACL Cables PLC Annual Report 2010/11
88
1991
ACL Plastics Limited was incorporated for the manufacture of PVC compound.
1993
Second technical collaboration agreement with NOKIA Cables of Finland for drawing and ageing
Aluminum Alloy conductors.
Commenced manufacturing of PVC compound at ACL Plastics Ltd, Ekala.
1995
Export of Cables commenced to Bangladesh and Maldives.
Acquisition of Ceylon Bulbs & Electricals Ltd.
1999
Acquisition of Kelani Cables Ltd.
Introduction of Power - X and Flexi cables.
2006
Incorporation of ACL Metals & Alloys (Private) Ltd and ACL Polymers (Private) Ltd.
Introduction of Fireguard and other re rated range of Products.
2007
Winning the Achievers Gold Award for Performance Excellence awarded by the Ceylon National
Chamber of Industries, Sri Lanka, National Quality Award and Taiki Akimoto Award on 5S.

2008
ACL Cables PLC awarded the highest award of Asia Pacic Quality Organization beating
participants from 46 countries. Recognized as a world-class company.

Awarded Super Brand status for the ACL brand.
Mi l estones
ACL Cables PLC Annual Report 2010/11
89
Noti ce of Meeti ng
NOTICE IS HEREBY GIVEN that the Forty Ninth Annual General Meeting of ACL Cables PLC will be
held at the Auditorium of ACL Cables PLC, No. 60, Rodney Street, Colombo - 08, on Wednesday the
28th September 2011, at 10.00am for the following purposes.
01. To receive and adopt the Report of the Directors and the Statement of Accounts for the year
ended 31st March 2011 with the report of the Auditors thereon.
02. To reelect as Directors Mrs. N. C. Madanayake and Mr. Daya Wahalatantiri who retire by
rotation in terms of article No. 85 of the Articles of Association of the Company.
03. To reappoint Messrs. PricewaterhouseCoopers, as Auditors of the Company and authorize
the Directors to determine their remuneration.
04. To consider and if thought t to pass the following Ordinary Resolution, of which special
notice has been given by a Shareholder of the Company.
(a) that Mr. U. G. Madanayake, who has passed the age of 70 years in May 2006, be and is
hereby appointed a Director of the Company and that the age limit of 70 years referred
to in Section 210 of Companies Act No. 07 of 2007 shall not apply to him
(b) that Dr. S. K. Madanayake, who has passed the age of 70 years in February 1999, be
and is hereby appointed a Director of the Company and that the age limit of 70 years
referred to in Section 210 of Companies Act No. 07 of 2007 shall not apply to him
(c) that Mr. Ajit Jayaratne, who has passed the age of 70 years in April 2010, be and is
hereby appointed a Director of the Company and that the age limit of 70 years referred
to in Section 210 of Companies Act No. 07 of 2007 shall not apply to him
05. To authorize the Directors to determine donations to charities.
BY ORDER OF THE BOARD
(Sgd.)
Corporate Aairs (Private) Limited
Secretaries
25th August 2011
Note:
(a) A shareholder is entitled to appoint a Proxy to attend and vote in his stead and a Form of
Proxy is attached to this Report for that purpose. A Proxy need not be a Shareholder of the
Company.
(b) Shareholders are kindly requested to bring the duly perfected and signed Attendance Slip
along with them when attending the Meeting and hand over same for registration.
ACL Cables PLC Annual Report 2010/11
90
Notes
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ACL Cables PLC Annual Report 2010/11
91
ACL CABLES PLC
I/We .................................................................................................... of ........
being a Shareholder/ Shareholders of the above Company hereby appoint ............................
or failing him/ her ............. of....
as my/ our Proxy to vote for me/ us on my/ our behalf at the Annual General Meeting of the Company to be held on 28th of
September 2011 at 10.00 a.m. and at any adjournment thereof.
IN NOT IN
FAVOUR FAVOUR
01. To receive and adopt the Report of the Directors and the
Statement of Accounts for the year ended 31st March 2011
with the report of the Auditors thereon.
02. (a) To reelect as Director Mr. Daya Wahalatantiri who retires by rotation
(b) To reelect as Director Mrs. N. C. Madanayake who retires by rotation
03. To re-appoint Messrs. PricewaterhouseCoopers as Auditors of the Company
and authorize the Directors to determine their remuneration.
04. (a) Ordinary Resolution (a) relating to the appointment of Mr. U. G. Madanayake
(b) Ordinary Resolution (b) relating to the appointment of Dr. S. K. Madanayake
(c) Ordinary Resolution (c) relating to the appointment of Mr. Ajit Jayaratne
05. To authorized the Directors to determine donations to charities.
Signed this day of ..........2011
.
Signature
ACL CABLES PLC ATTENDANCE AT ANNUAL GENERAL MEETING
I/We hereby record my/our presence at the Forty Ninth Annual General meeting of ACL CABLES PLC
01. Name of Share Holder : .....................................................................................................................
Name of Proxy (If Applicable) : .....................................................................................................................
02. Shareholders NIC Number : .....................................................................................................................
Proxys NIC Number (If Applicable) : .....................................................................................................................
03. Signature of Shareholder : .....................................................................................................................
Signature of Proxy (If Applicable) : .....................................................................................................................
Shareholders are Kindly Requested to Bring this Attendance Slip with Them When Attending The Meeting and Hand Over same for Registration.
Form of Proxy
ACL Cables PLC Annual Report 2010/11
92
INSTRUCTIONS FOR COMPLETION
1. The instrument appointing a Proxy shall in
the case of an individual be signed by the
appointer or by his Attorney and in the case of
a Corporation be either under its Common Seal
or signed by its Attorney or by an Ocer on
behalf of the Corporation.
2. A Proxy need not be a Shareholder of the
Company.
3. The full name and address of the Proxy and the
Shareholder appointing the Proxy should be
entered legibly in the Form of Proxy.
4. The completed Form of Proxy should be
deposited at No.60, Rodney Street, Colombo
08, not less than 48 hours before the scheduled
starting time of the Meeting.
COMPANY NAME
ACL Cables PLC
REGISTRATION NUMBER
PQ 102
BOARD OF DIRECTORS
U. G. Madanayake - Chairman
Suren Madanayake - Managing Director
Dr. S. K. Madanayake
Mrs. N. C. Madanayake
Hemantha Perera
A. M. S. De S. Jayaratne
Hemaka Amarasuriya
D. D. Wahalatantiri
P. S. R. Casie Chitty
SECRETARIES
Messrs. Corporate Aairs (Private) Limited
No. 68/1, Dawson Street, Colombo 02
GROUP FINANCIAL CONTROLLER
Champika Coomasaru
REGISTERED OFFICE
60, Rodney Street, Colombo 08. (1/6/2011 onwards)
Contact Details
Tel: +94 11 2697652
Fax: +94 11 2699503
E-mail: info@acl.lk
Website: www.acl.lk
Corporate I nformati on
AUDITORS
Messrs. PricewaterhouseCoopers
Chartered Accountants
100, Braybrooke Place, Colombo 02.
BANKERS
Citi Bank
Commercial Bank of Ceylon PLC
Deutsche Bank
Hatton National Bank PLC
Hongkong & Shanghai Banking Corporation
National Development Bank PLC
Nations Trust Bank PLC
Peoples Bank
Sampath Bank PLC
Standard Chartered Bank
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