Jat holdings (pvt) ltd annual report 2014-15 lowres (2)

A brave new world
JAT Holdings (Pvt) Ltd Annual Report 2014 /15
JAT Holdings (Pvt) Ltd
No: 351, Pannipitiya Road,
Thalawathugoda,
Sri Lanka.
JATHoldings(Pvt)Ltd AnnualReport2014/15

Contents
Our Mission
To be the Preferred Supplier in the South Asian Region for
Leading Brands in the Furnishing and Finishing Industries.
Our Vision 2015
• To be the preferred customer of leading suppliers in the industry.
• Achieve a group turnover of Rs. 5 billion by 2015.
• Achieve a net profit (after tax) of 15% of turnover.
• Establish distributors in new markets and convert existing intermediaries
to form joint ventures with the Company (Distributors’ 5/JV3).
• Be among the top 20 “Employers of Choice” in Sri Lanka.
• Be the principal brand of choice in the coating industry.
• Be renowned as the “best source of information” in the coating industry.
• Certify 10,000 professionals in the coating industry.
Our Values
Our valued Employees at JAT are required to encompass four
essential values in order to achieve our Mission and Vision:
• To possess in-depth knowledge of the entire business.
• Complete and augment Customer satisfaction.
• Attain and achieve leadership at all levels.
• Spearhead continuous improvement and innovation.
Performance at a Glance 02 About Us 06 Our Brands 08 Chairman’s Message 12 Managing Director’s Message 14
Board of Directors 16 Executive Directors 18 Senior Management 20 Operational Review 24 Awards 34 Financial Review 36
Corporate Social Responsibility 38 Our People 39 Corporate Governance 42 Report of the Audit Committee 45
Report of the Remuneration Committee 46 Statement of Directors Responsibilities 47 Annual Report of the Board of Directors 48
Financial Reports
Independent Auditors' Report 53 Statement of Profit or Loss and other Comprehensive Income 54 Statement of Financial Position 55
Statement of Changes in Equity 56 Statement of Cash Flow 57 Notes to the Financial Statements 59 Shareholder Information 98
5 Years Summary 99 Our Branch Network 100 Notice of Meeting 101 Notes 102 Form of Proxy 103 Corporate Information IBC
Corporate Information
Registered Office
JAT Holdings (Pvt) Ltd.,
No: 351, Pannipitiya Road,
Thalawathugoda, Sri Lanka.
Phone: +94 11 – 4407700
Fax: +94 11 – 2773793
Email: info@jatholdings.com
Web Site: www.jatholdings.com
Date of Incorporation
1st July 1993
Board of Directors
Dr. S. Selliah - Chairman
Mr. Aelian Gunawardene - Managing Director
Mr. Jehan Amaratunga - Independent Director
Mr. Indika Chandrasekera - Director Operations
Mr. S. Sivasubramaniam - Director Finance
Mr. Lakmal Perera - Director Commercial
Audit Committee
Mr. Jehan Amaratunga - Chairman
Dr. S. Selliah
Remuneration Committee
Dr. S. Selliah - Chairman
Mr. Jehan Amaratunga
Bankers
Commercial Bank PLC
The Hongkong and Shanghai Banking Corporation Ltd
Hatton National Bank PLC
National Development Bank PLC
Auditors
Ernst & Young
Chartered Accountants
No 622-B,
201, De Sarams Place,
Colombo 10.
Secretaries
RNH Holdings (Pvt) Ltd.
Kotte Road,
Kotte.
Produced by Copyline (Pvt) Ltd Photography by Prishan Pandithage Printed by Gunaratne Offset Ltd

Annual Report 2014 /15
01
JAT Holdings (Pvt) Ltd • A brave new world
In a competitive world which is relentlessly fast paced and
espoused with innovative advancements and progressiveness
JAT Holdings stands at the zenith of the furnishing and finishing
sector. Since our inception in 1993 JAT Holdings has built
unequivocal brand equity, chiseling a reputation as a dynamic,
eclectic, service and customer oriented corporate venture that
augers unparalleled quality interlaced with pristine innovation.
Brands Finance Lanka further augmented the credibility of
our portfolio by crowning JAT as one of the “Top 10 Strongest
Conglomerate Brands”. The year under financial review has been
a spectacular one with our aggressive disposition to acquire
excellence through passion and perfection, mixed with our
workforce’s unrelenting spirit and our steadfast vision to always
excel, persevere and innovate.
It is apt to deduce that JAT spearheads the furnishing and
finishing industry as a pivotal force synonymous with chic
grandeur and eponymous quality.
It’s truly a brave new frontier. A brave new world.
A brave new world

02
Performance at a Glance
Year Ended 31st March 2015 2014 /2015 2013 /2014 Change
Rs.'000 Rs.'000 %
Operating Results
Revenue
Local Turnover 2,694,100,951 2,404,395,454 12
Export turnover 852,064,164 588,221,878 45
Gross Profit 1,280,756,588 986,202,300 30
Net Finance Cost (30,818,974) (36,489,142) (16)
Profit Before Tax 639,905,861 445,120,312 44
Profit for the Year 541,632,242 390,897,961 39
Financial Position
Non Current Assets 608,647,991 468,784,282 30
Current Assets 2,478,369,884 2,106,372,795 18
Total Assets 3,087,017,875 2,575,157,077 20
Total Equity 1,829,679,270 1,489,362,113 23
Non Current Liabilities 36,403,725 33,088,183 10
Current Liabilities 1,220,934,880 1,052,706,781 16
Total Equity & Liabilities 3,087,017,875 2,575,157,077 20
Financial Indicators
Return on Equity (%) 30 26 13
Return on Total Assets (%) 18 15 16
Gross Profit Ratio (%) 36 33 10
Net Profit Before Tax Ratio (%) 18 15 21
Current Ratio (Times) 2.03 2.00 1
Liquidity Ratio (Times) 1.44 1.23 17
Gearing (%) 0.48 1.0 (52)

03
38.56%
Net Profit Growth
29.60%
Return on Average Equity
19.88%
Growth of Assets
18.50%
Growth of Revenue
Revenue
11 12 13 14 15
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Rs. Mn
Profit After Tax
11 12 13 14 15
0
100
200
300
400
500
600
Rs. Mn
Assets
11 12 13 14 15
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Rs. Mn

06
About Us

07
JAT Holdings (Pvt) Ltd., since its inception in 1993 embodied
the credo of facilitating total timber solutions to a large and
eclectic clientele – be it corporate or individual – to always deliver
immaculately while getting the right finish first.
JAT ventured into the corporate world with the primary objective
of providing state of the art, innovative and cutting edge solutions
to uplift the standards of the furniture and finishing industry. We
grasped at our very beginning how important an impeccable
finish really is to compliment the end result.
Consequent to successfully establishing ourselves in the
timber coating market as a pristine and pivotal force to be
reckoned with, the Company expanded its product offering to
include a more comprehensive range of products to satisfy the
requirements and needs of a diverse and expanding Clientele
Islandwide and overseas.
JAT has striven perpetually to offer a multifarious and
intricately varied product catalogue catering to a clientele with
requirements ranging from a wider spectrum of surfaces to a
plethora of construction needs.
Our current Product Portfolio includes Decorative Domestic
and Industrial Emulsion, Exterior Wall and Enamel Paints,
Maintainers, Putties and Plasters, Mineral Fiber or Steel Ceilings,
Timber Flooring and Decking, Office Seating and Desking,
Carpeting, Abrasives and Paint Brushes.
As our endeavor ensues and we expand globally - signing
agreements with renowned corporate entities in the region - it
is a tenet we hold dear with incomprehensible esteem to etch a
success story that will shape into a true and bountiful legacy. JAT
has successfully ventured beyond borders, shattering paradigms
and defying convention while always evolving and spearheading
innovation with epic grandeur.
It truly is a frontier of fresh challenges and remarkable goals,
more importantly it is a Brave New World that JAT is proud of,
standing at the zenith of the furniture and finishing sector as
unrivalled connoisseurs.
JAT head office

08
Our Brands
Sayerlack is the flagship brand distributed by JAT. Initiated
in 1954, Sayerlack, based in Italy has consistently provided
the most innovative and highest quality wood finishers to the
industry. Commitment to research and development of new
technologies has led to the brand being recognised as the largest
producer of wood coatings in the world.
Sayerlack is the pioneer in water based coatings and now offers
a wider range of products including polyurethane and nitro
cellular lacquers with scratch, heat and chemical resistance
properties. Sayerlack is represented in 83 countries as the
global leader of the segment and we at JAT is the second largest
distributor in the export market.
Another invaluable internationally renowned brand represented
by us is Herman Miller, recognised as the pinnacle of prestige in
seating and office desking. Herman Miller today, over a 100 years
since its inception, is an innovative business with a commitment
to social responsibility. The ergonomic seating and desking
designed to support and improve posture is a highlight factor of
Herman Miller with a 12 year unconditional warranty on every
product.
The legendary Eames Lounge design produced by Herman
Miller is on show at the University of Modern Art, a reflection of
the distinct caliber that is unique to its products. Herman Miller
was cited by Fortune within the 100 best companies to work for
and among the most admired.
JAT distributes the entire range in the local market. Aeron,
Eame's Lounge and Ottoman, Embody, Sayl, Mirra and Abak
desking Solutions to name a few.

09
Our Sri Lankan subsidiary, Brush Master produces a range of
premium brushes for all applications and is completely handcrafted
using DuPont Tynex filaments by experienced brush makers.
The innovative technology of DuPont Tynex filaments is designed
to pick up and hold the required amount of paint in order to provide
flawless strokes and make cutting and lining work perfect. The
filaments are appropriately tipped and flagged to release paint evenly
and smoothly onto the surface with little effort.
Crown Paints is a British paint maker with a long drawn history
which can be traced back to the late 1850s. The brand has been
associated with royalty in the United Kingdom and is recognised
by a royal warrant granted by Her Majesty the Queen.
Possessing a comprehensive colour palette and a highly
innovative product range, Crown introduced the revolutionary
breathe easy technology along with innovative additions to their
product range in the form of anti-bacterial, fire-proof and quick-
dry paints to the world.
Permoglaze Paints Limited was incorporated in 1960 in Darwen,
the United Kingdom. The impressive variety of paint available
in this range ensures that you will always find exactly what you
are looking for, from interior and exterior wall finishes in various
colors to primers, wood finishes and floor paints.
Priding themselves for its superior product range, fast and
reliable service combined with an excellent level of quality,
makes Permoglaze the ideal paint choice of the professional.

10
Our Brands contd.
For over 80 years, Gossen has thrived on innovation. In the
1960s, Gossen became the first company in North America to
make cellular PVC products for the building industry. Today, you
will find Gossen’s high performance, low maintenance products
on six continents; supplying customers with Decking, Railing,
Moldings, Millwork, Trim boards, Sheets and more. Gossen
products are beautiful, sustainable and easy to maintain.
Armstrong World Industries, Inc. is a global leader in the design
and manufacture of floors, ceilings and cabinets. In 2010,
Armstrong's consolidated net sales totaled approximately
US$2.8 billion.
Based in Lancaster, USA, Armstrong operates 31 plants in seven
countries and has approximately 9,300 employees worldwide.
Armstrong markets the most extensive portfolio of residential
and commercial floor products available – hardwood interior and
exterior decking, laminate, linoleum, vinyl sheet and tile, ceramic
and Bio Based Tile® – under the brand names Armstrong®,
Bruce® and Robbins®.

11
Borma Wachs, based in Italy, is considered a specialist in
wood care with a pledge to offer customers only the best in
their services and products which include putties, maintainers,
marble, stone, terra cotta and timber cleaning agents.
With a strong focus on three key aspects, the Borma Wachs
credo is a fine balance of flexibility, reliability and quality; a
principle which has served them well to be a leading player in
the international industry.
Norton, the world’s premium abrasive brand, offers a complete
range of high performance products designed to perform in any
abrasive application in all industrial markets.
As the technology leader, Norton sits at the forefront of the
industry offering highly engineered value-adding abrasive
solutions. Each year, Norton makes substantial investments
in R&D helping to generate innovative ideas that aim to
revolutionise abrasives.
This strong commitment to innovation ensures that exciting
new products are continuously introduced, offering substantial
benefits to customers by helping to improve process productivity.

12
Chairman’s Message
JAT Holdings (Pvt) Ltd., has steadfastly
carved a sound reputation as a dynamic,
diverse, service and customer oriented
corporate entity that augers unparalleled
quality interlaced with pristine innovation. In
a world of rapid progression, in an industry
that gears itself for innovative change, JAT
has built exceptional brand equity for itself,
never compromising its tenet to excel in
its business ventures while growing from
strength to strength, across the gamut of its
operations as a vital cognizant force in the
furnishing and furniture sector.
Therefore it is with great esteem that I am
happy to present to you, on behalf of the
Board of Directors, the Annual Report and
Annual Audited Accounts for the year ended
31st March 2015. It is with pleasure that I
welcome you to the 2nd Annual General
meeting of JAT Holdings (Pvt) Ltd.
It is apt to deduce that the year under
review has been one that has been proven
"It is apt to deduce
that the year under
review has been
one that has been
proven successful
and fruitful in every
sense."
successful and fruitful in every sense. This
report depicts that the Company concluded a
successful year and recorded an impressive
and steady performance for the year
2014/15. The Company recorded impressive
revenue of 3.5 billion rupees in comparison
to the revenue of 3 billion rupees of the
previous year. This projects a growth in real
terms of around 18% in revenue for the year
2014/15 when compared to our prior year’s
achievements.
Your Company also recorded a healthy
gross profit of 1.2 billion rupees, which
was a 30% increase year on year, posting a
healthy profit after tax of 541 million rupees
compared to the 390 million of the previous
year. This represents a 39% increase in net
profits when compared to the statistics of
the year previously under review.
While always setting its eyes on the best
brands, the Company has risen as the
market leader for world-class water based
wood coatings “SAYERLACK” from Italy
and other timber coating solutions in the
local market. Sayerlack product sales have
been showing a steady increase in the local
market and have established considerable
brand credibility and an unmatched
presence, complementing our penchant for
immaculate execution while encompassing
our core values to achieve visibility with
unparalleled finesse in the country. This
product has depicted healthy growth in the
export market. The export turnover recorded
an impressive 45% increase during the
year under review when compared to the
previous year. The Company has secured
new channels of entrepreneurship and
avenues of promising business from other
important export markets in addition to its
current exports.
Your Company continues to focus on our
other flagship products such as Permoglaze,
Herman Miller, Brush Master and

13
Armstrong, which now are established and
renowned brand names in the market.
JAT during the previous year’s tenure set
in motion the required infrastructure and
facility locally, to produce and market
Permoglaze paints. Permoglaze is a
recognised and respected brand in the Sri
Lankan paint industry and the Company
solidified the brand’s presence across the
gamut of the country within a short period
of time. The brand sports a truly versatile
range of products under its wing, catering to
the local market. Some of the new product
range introduced this year in addition to the
interior and exterior decorative paint range
are the Permoglaze wall putty, Permoglaze
roofing paint, and the Permoglaze crack
bridging wall filler.
The Company has also secured the agency
and signed a licensing agreement for
the manufacture and sale of the world-
class paint brand “Crown” from the United
Kingdom, aspiring to launch this renowned
brand in the latter part of 2015. These two
brands of decorative paints will help the
Company to cater to different segments in
the industry across the board, and to every
part of the nation.
JAT continues to invest its capital on its
expansion drive in relation to factory
capacity, machinery and buildings, in order
to set up the required infrastructure and
facility for manufacturing operations and
related processes of all these monumental
brands. We always nestle the future in mind
and with a view of increasing the available
capacity that is currently in place, the
Company incorporated extra factory space
in Kahatuduwa while acquiring a new land
in Horana; as sites for setting up promising
manufacturing plants. JAT also meticulously
reviews its manufacturing process to
attain higher efficiency and to accentuate
productivity. During the year under review
automation of packing related to water
base products was also achieved, depicting
greater efficacy and value to this respective
area of operation.
I am pleased to inform you that the
Company is migrating towards a new
ERP system, which we think will become
operational by the latter part of the year. The
ERP we believe will provide the organization
with an integrated view of core business
processes, which will reap a myriad of
benefits.
By perpetually keeping in line with the best
practices, it is significant that the Company
financials are presented this year as per the
SLFRS standards. Your Company has put in
place many processes and practices, which
I am sure, would enhance the intrinsic value
of the company and ultimately augment
Shareholder value in equal proportions.
Your Company continues to be governed
and guided by the code of best practices
with regards to corporate governance. We
have ensured by keeping in line with the
Company policy on Shareholder return, that
a dividend of cents 43 was declared to the
Shareholders by the Company during the
year.
While focusing on the core business, the
Company will emphasize on rationalising
our product portfolio and viewing
new business opportunities that are
complementary in nature. The Company is
heedful and very conscious of being socially
responsible at every turn and juncture. The
project saw the light of day last year, when
we embarked on working towards reducing
maternal mortality in collaboration with
the Sri Lanka College of Obstetricians and
Gynecologists, an endeavor that we continue
to support throughout this year as well.
Although there is minimal generation of
waste from the factories, always responsible
and vitally cognizant, the Company set up a
wastewater treatment plant, which is now
operational, much to the satisfaction of all
our Stakeholders.
It is appropriate that I thank the Managing
Director for his immense cooperation
extended to me and the Board at all
times, and for successfully steering this
company to the zenith of our respective
industry with incredible determination
and splendid dynamism. Finally let me, on
behalf of the Board of Directors thank the
Management Team and all our Staff for their
sincere support, relentless spirit to achieve
greatness and hard work in ascertaining
positive results and ensuring such incredible
growth during the year under review. While
we expect their continued cooperation,
I also wish to thank the Members of the
Board for their valuable insight in striving
to achieve excellence, for their support
extended to me at all times and faith in
this Company’s operations. I also wish to
thank our Bankers, our Business Partners,
our Overseas Principals, Intermediaries,
Retailers and our distinguished Clientele for
their unbridled loyalty, continued support
and for the immeasurable trust placed in the
Company. Finally in this brave new world
we should be pragmatic and au courant of
all our achievements; that they are but a
collective effort embodied by a unrelenting
team that share a common vision for
greatness although the honor is ours to be
such a prestigious face, a true innovator
and dynamic leader in the furnishing and
finishing industry.
Dr. S. Selliah
Chairman
30 May 2015

14
Innovation… a dynamic disposition…
a grand vision shaped into reality…
the attitude to soar above and reach
untapped and unchartered territory
as a true industry leader and a face
synonymous with astonishing quality and
a fervent relentlessness yet to be rivaled.
Our passion to attain perfection,
amalgamated with our steadfast vision
and fantastic workforce’s emphasis to
persevere and innovate has positioned
us as a remarkable corporate entity to
the zenith of the furniture and finishing
landscape.
It is therefore with great pride that I
evaluate the significant growth that we
have experienced over the years since
our inception in 1993. It goes without
saying that I am equally and extremely
proud of what we have accomplished,
Managing Director’s Message
"Let our loyal and
diverse clientele bear
testimony to that
fact that attaining
perfection and an
immaculate finish
lies as the bedrock of
etching each and every
milestone."
let our loyal and diverse clientele bear
testimony to that fact that attaining
perfection and an immaculate finish lies
as the bedrock of etching each and every
milestone.
Despite numerous achievements, my
excitement is paramount in relation to
your Company’s stringent outlook to
carve out an equally promising future.
JAT has successfully metamorphosed
from being a small Colombo based
company to evolve into a respected
private limited liability company today,
providing employment to over 250
individuals.
We have never shunned our focus from
those humble beginnings to where we
stand at present as a flagship entity
of deep respect and greater renown,
recognised islandwide and globally as the
most reliable supplier and undisputed
leader in timber coatings in Sri Lanka,
Bangladesh , Maldives, India and
Seychelles.
Our success must also be attributed
to the support rendered by our trusted
advocates, affiliating ourselves with
multi-national companies; Sayerlack,
Herman Miller, Crown, Permoglaze,
Brush Master, Armstrong, Borma Wachs,
Norton – Saint Gobain and Nature. The
aforesaid monikers are prime market
leaders in their respective fields, and we
confidently move forward to continue
providing dynamic and efficient services
of the highest caliber to our customers.
We have grown steadily, recognizing that
the only lasting competitive advantage
is supreme quality at an affordable
cost. With customer satisfaction as

15
our prime focus within the corporate
and retail sphere, it is hardly surprising
that we have managed to spearhead a
revolutionary role as the market leader.
The fact that we have always remained
cognizant, safeguarding and emphasising
on our development with sedulous social
and environmental concerns in mind is
yet another component of our success
story. We at JAT continuously focus on
attention to detail to ensure better quality
by utilising improved manufacturing
processes, resulting in an excellent
service each and every time.
I wish to draw attention to one such
accolade of being crowned one of Sri
Lanka’s top conglomerates after over two
decades; a remarkable and notable feat.
This is our first time winning a ranking
on the Brands Finance registry and we
are enthralled to be ranked next to some
of Sri Lanka’s leading conglomerates.
Brands Finance is a well-respected,
independent consultancy that has been
in operation for almost a decade and has
performed hundreds of brand valuations
and we are proud to be included in their
ranking.
I take this opportunity to thank our
Chairman for his unstinted guidance
and support throughout the year, the
Board members and all Members of
my vigilant and efficient team, who
have contributed their skills, hearts and
minds to assist JAT on its ever-evolving
journey of progress and development. I
offer my sincere gratitude to our faithful
and ever increasing Customer Base,
Stakeholders and Intermediaries for their
loyalty and support throughout the years.
It is my belief that we will persist in our
endeavors to surpass all expectations
and be a world leader in our chosen
field of expertise with unfathomable
dedication, precise attention to detail
and a focal commitment to quality and
service that we will always continue to
display, in frontiers new and traditional…
in this brave new world.
Aelian Gunawardene
Managing Director
30 May 2015

16
Board of Directors
1. Dr. S. Selliah - Chairman
2. Aelian Gunawardene - Managing Director
3. Jehan Prasanna Amaratunga - Independent Director
4. Somasundaram Sivasubramaniam - Director Finance
Treasury and Commercial
5. Lakmal Perera - Commercial Director
6. Indika Chandrasekera - Director Operations
1
4
2
6
5
3

17
Dr. S. Selliah (MBBS, M.Phil)
Chairman
Dr. S. Selliah was appointed to the
Board of JAT Holdings (Pvt) Ltd., in
February 2014, and is the current
Chairman of the Company. Dr. Selliah
holds a MBBS Degree and a Master’s
Degree (M.Phil). With over 23 years of
experience in diverse fields which include
manufacturing, healthcare, plantation,
logistics, packaging and retail, Dr.
Selliah’s passion to guarantee JAT excels
and performs exceptionally is paramount
in the Company achieving sustainability
and solidarity.
Dr. Selliah is currently the Deputy
Chairman of Asiri Hospital PLC, Asiri
Surgical Hospital PLC and Central
Hospitals Private Ltd. He is a Director
of Lanka Tiles PLC, HNB Assurance
PLC, Softlogic Holdings PLC, ODEL PLC,
Lanka Walltiles PLC, Lanka Ceramic PLC,
Horana Plantation PLC and ACL Cables
PLC. Dr. Selliah is also the Chairman of
Cleanco Lanka Pvt Ltd., while serving on
the Remuneration Committee and Audit
Committee of some of the corporate
entities listed above.
Aelian Gunawardene
Managing Director
Mr. Aelian Gunawardene possesses
over two decades of experience in
the Management and Marketing
stratosphere. Mr. Aelian Gunawardene
has a Diploma in Marketing Management
from the Chartered Institute of Marketing
UK and remains a focal asset in the
Company, pioneering new innovations
and steering JAT towards unchartered
terrain, while increasing market share
and helping build unequivocal brand
equity while JAT expands and evolves
into a colossal force in the furniture and
finishing industry.
Jehan Prasanna Amaratunga
Independent Director
Mr. Jehan Prasanna Amaratunga is the
Executive Deputy Chairman of MTD
Walkers PLC, Sri Lanka. He is a Fellow
Member of The Institute of Chartered
Accountants of Sri Lanka and a Fellow
Member of the Chartered Institute of
Management Accountants, UK.
Mr. Amaratunga was awarded the
‘First in Order of Merit’ Prize at the final
examination of the Institute of Chartered
Accountants of Sri Lanka. He currently
serves as a Director of People’s Bank,
People’s Leasing & Finance PLC and JAT
Holdings (Private) Limited. He is also the
Chairman of People’s Insurance Limited
and a Member of the Council of the
University of Colombo. He Counts over
25 years of experience as a connoisseur
of Finance and Management. Mr.
Amaratunga has served as a Consultant
and Director to a number of Corporations
and Private Business entities. At the
National Conference of the Institute of
Chartered Accountants of Sri Lanka, he
presented a paper titled “Value for Money
Accounting” which is one of the many
notable achievements that stand out in an
illustrious and exceptional career. He was
also a member of the Governing Council
of the Institute of Chartered Accountants
of Sri Lanka.
Somasundaram Sivasubramaniam
Director Finance Treasury and Commercial
Mr. Sivasubramaniam is a trusted and
valued asset of JAT Holdings (Pvt) Ltd. He
is an associate Member of the Chartered
Accountants of Sri Lanka and possesses
16 years of hands-on experience in the
finance field.
Lakmal Perera
Commercial Director
Mr. Lakmal Perera offers his skill set and
knowledge to JAT Holdings (Pvt) Ltd.,
sporting 17 years experience in the areas
of Management, Imports and Exports.
Mr. Perera holds a Diploma in Banking,
Finance and Management.
Indika Chandrasekera
Director Operations
Mr. Indika Chandrasekera is no stranger
to the JAT family having been part and
parcel of our operations for 17 years. Mr.
Chandrasekera’s considerable experience
in local manufacturing and sales has
proved vital in our operations.

18
Executive Directors
1
4
7
2
5
8
3
6
9

19
Aelian Gunawardene
Managing Director
See page 17 for the profile.
Joyce Gunawardene
Director Promotions
With 8 years experience in the field of Advertising
and Promotions, Ms. Joyce Gunawardene has a
B.Sc Degree in Psychology from the University of
NSW Australia.
Indika Chandrasekera
Director Operations
Wasantha Gunaratne
Director Technical
Mr. Wasantha Guneratne with 15 years
experience at JAT Holdings in Sales, Marketing
and Technical Training has become a face
synonymous with quality and stringent standards.
He has received extensive training from our
principals in Italy and continues to expend
this knowledge to all our customers in the
Subcontinent.
Somasundaram Sivasubramaniam
Director Finance Treasury and Commercial
Lakmal Perera
Commercial Director
Hiranthi Goonawardhana
Director Finance
Hiranthi Goonawardhana is an associate member
of the Institute of Chartered Accountants, Sri
Lanka. She possesses 14 years experience
in the field of Finance, with a Degree in B.Sc
Business Administration from the University of
Sri Jayewardenepura.
Surani Sahabandu
Director Sales & Marketing
Surani Sahabandu has garnered over 14 years of
working experience, with a decade of expertise
specifically in the fields of Sales & Marketing. She
has a BSc (First Class) University of Colombo, an
MBA (Post Graduate Institute of Management,
University of Sri Jayawardenepura) and is CIMA
(passed finalist) qualified.
Rizna Dilshard
Head of Finance
Rizna Dilshard was appointed to the Management
of JAT Holdings (Pvt) Ltd on 1st April 2015. She
is a Fellow member of the Chartered Institute of
Management Accountants (CIMA) UK and counts
a monumental 20 years’ experience in the field of
Finance and Management in Sri Lanka.
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20
Senior Management
Seated Left – Right
Lamal Perera – Director Commercial
Somasundaram Sivasubramaniam – Director Finance Treasury and Commercial
Joyce Gunawardene – Director Promotion
Wasantha Gunaratne – Director Technical & Head of Bangladesh Sales and Marketing
Aelian Gunawardene – Managing Director
Indika Chandrasekera – Director Operations
Hiranthi Goonawardhana – Director Finance
Rizna Dilshard – Head of Finance
Surani Sahabandu – Director Sales & Marketing

21
Eranda Dandeniya – Technical Manager
Susil Rajapakse – General Manager Administration
Augustus Pious – Technical Manager
Back row left – Right
Dharmajith Rubasinghe – Manager Investigation & Recoveries
Rajesh Ariyarathne – Technical Manager
Dharmendra – General Manager – Brush Master
Gavin Vandort – General Manager Projects
Standing Right – Left
Chaminda Weerasekera – Sales Manager
Richard Gunawardene – Asst. Brand Manager
Charith Peramune – General Manager - Factor
Maithri Vithanage – National Sales Manager
Nirosha Thawalampitiya – General Manager – Commercial
Chaminda Gulawita – Sales & Technical Manager
Waruna Salgado – Finance Manager
Nash Nashad – Country Head – India
Devika Gallage – Business Development Manager

24
Operational Review
For a company that pioneered some
of the country's and this region's most
advanced finishing and furnishing
solutions, this year has seen JAT
Holdings continue its extraordinary
journey. Etching pathways into a
brave new world where our visionary
leadership in the industry, innovative
outlook and unwavering focus on
quality remains the bedrock of our
fundamentals, the year's performance
both qualitative and quantitative is
undoubtedly one that should be lauded.
And lauded we were when, among a host
of accolades, JAT gained the lofty crown
of being among the Top 10 Strongest
Conglomerate Brands in the country. This
surely gives us impetus to strengthen
our gains, build on our achievements,
exploit the emerging opportunities and
expand our horizons. This is the reason
we remain at the zenith in our industry
and the raison d'etre we will continue to
augment that status.
Observations on the global
construction industry
There has been much riding on the
construction industry globally given the
constantly evolving face of infrastructure
development, which in turn has
permeating impacts on multiple areas
of growth, including in communities
and in the macro sense, national
development. This has spurred countries
in all demographics to continue investing
in various modes of construction,
spearheading immense improvement
and development in the quality and
quantity of construction ventures, which
also gives value addition to any country's
key performance indicators. In fact, the
global construction industry is expected
to reach an estimated value of US
$10,388.6 billion by 2019 with the major
drivers being government spending,
increasing population, high per capita
income and GDP growth. Increasing
urbanization, easy credit availability
and rising consumer spending will also
possibly boost the construction industry.
Strong economic growth in developing
nations including China, India and the
Middle East is expected to add fillip to
this.
Sri Lankan Operating Environment
Sri Lanka's growth trajectories for 2014
was posted at 7.4%, showcasing the
immense resilience and dynamism the
country has been experiencing in the last
five years. While the growth in itself did
not meet the expectations projected at
the beginning of the year, the fact that
it remained well on par with regional
counterparts and above global growth
is surely a commendable feature, given
the external volatility that has been
experienced in key trade and commercial
hubs. The Sri Lankan economy was
driven by consumption expenditure,
although it was investments, particularly
in construction that added impetus to the
economy's expansion observed in 2014.
Construction of infrastructure remained a
key focus in the aggressive development
agenda pursued by the State, given that
it creates a robust foundation for the
sustained and rapid economic growth
planned for the country. This would also
be the foundation to propel inclusive
growth and environmental sustainability.
The construction sub-sector which
comes under the industry sector, did
post significant results for end 2014,
growing 20.2% over last year's 14.4%.
This growth stems from the increased
public sector investment observed in
development activities. This includes
mega infrastructure projects, promotion
of permanent housing from temporary
shelters and private sector involvement
which amounted to a 22.3% increase
in credit granted to the private sector
by commercial banks for construction
activities. Credit granted for personal
housing by commercial banks also
increased by 28.7%, compared to a
dismal 9.1% the year prior.
JAT gained the lofty crown of
being among the Top 10 Strongest
Conglomerate Brands in the country.
This surely gives us impetus to
strengthen our gains, build on our
achievements, exploit the emerging
opportunities and expand our horizons.

25
Besides government led projects, Sri
Lanka has been fortunate to have a
collective of global investors adding fillip
to large scale housing infrastructure
in Sri Lanka. Taking advantage of the
numerous incentives provided to facilitate
these projects, with some envisaged to
operate as Public-Private Partnerships,
these projects would target the demand
available for upscale housing widely
prevalent in and around the metropolis.
Phase II of the Southern Expressway,
Phase I and Phase II of the Colombo
Outer Circular Highway, the Northern
Railway Line and Multi-purpose Deduru
Oya Reservoir Project were some of the
major government investments which
were in progress in 2014, while large-
scale private construction activities
including hotel projects and apartment
complexes also contributed to the growth
detailed in the construction subsector.
As JAT has been propagating throughout
our entire philosophy, there has always
remained a dire need to improve the
quality of housing in the country.
The brick and mortar structures
constructed for the most part need
continued supervision and monitoring
to ensure compliance, not only with
good construction practices, but also
to weather and climatic change and
vagaries, besides environmental
compliance. The year saw renewed
focus on the availability of housing
aligned with the 'House Ownership for
All by 2020' unveiled under the National
Housing Policy, which also pays due
application to the improvement in
quality standards. Under this umbrella,
the two key projects that are currently
being focused upon to ensure a better
standard and quality milieu are the Urban
Regeneration Project under the aegis
of the Urban Development Authority
and the Janasevana National Housing
and Settlement Development Operation
driven by the Ministry of Construction,
Engineering Services, Housing and
Common Amenities.
Entering a Brave New World
The JAT formula for success is simple;
we believe in pushing boundaries in
innovation and walking the talk in
compliance and quality standards. We
add superior levels of customer service
into this formula, which has surely been
the driving force in ensuring that the
brave new world we have entered into
has enabled us to showcase double digit
growth in all our business categories.
Market share has continued to rise, as
has brand value and equity, all of which
point towards JAT etching a sustainable
path of growth.
It is pertinent to note here that JAT's
sales and marketing premise has always
been sound, a definite advantage in the
consistent growth we have observed.
The investment on brand building has
been intense and intended to build long
term relationships with our Stakeholders,
spurring confidence and loyalty among
Customers. Short term spurts of
discounts or such germane initiatives
are not part of our marketing strategy.
Urging top of mind recall is an imperative
and therefore, each campaign is worked
on ensuring that brand image, brand
value, brand promise and brand ethics
are well evidenced, under the umbrella of
catchy phrases and taglines.
The host of accolades we have collated
during the year is testament to our strong
brand, unwavering innovative stance and
constantly raising the bar. Being named
among Sri Lanka's top ten Strongest
Conglomerate Brands by Brand Finance
Lanka, attests to the strong brand we
have built, the positive public perception
that surrounds our brand and the fact that
Warehouse

26
JAT shares equal space among some of
the country's large and well established
blue chip conglomerates, some with
a history of over a century. The Silver
Award won at the National Business
Excellence Awards and the Silver Award
for Industrial Excellence presented by the
Sri Lanka Chamber of Small Industries,
prove the consistency we have espoused
in growing a sustainable and ethical
business and the emphasis we place on
permeating quality, standards and best
practices into the industry we operate in.
The overarching accent on innovation
which forms the backbone to our
business is a permeating one. Not just in
innovating products and services, but it
is a mindset that extends to the concepts
used in marketing and promotions as
well. Winning a prestigious Effie Award in
2013 for Sayerlack was surely a highlight
in our marketing endeavours, while
being presented continuous laurels for
the design and innovation of our stalls
including our stalls at the Hotel Show and
the Sri Lanka Institute of Architects Trade
Exhibition has been exciting. From a
product perspective, Brush Master gained
kudos at the Halal World Awards in 2012,
when it won the title of Most Innovative
Product, stamping a strong presence in
its highly competitive product category.
Ours is a non-compromising stance
as well, articulated in our corporate
philosophy to, 'Get the right finish,
first'. The connotations embedded in
this statement pushes us to be a team
that works on getting things right
the first time, as in our business, we
cannot be complacent or experiment.
In a brave new world, we must work
as an entity that believes in ourselves
and our products, knowing full well
that everything we present to our
Stakeholders is superior and constructed
on quality, ethics, transparency and
accountability. Working with an
immensely talented team which is intent
on carrying our mission of becoming
the preferred supplier in the South
Asian region for leading brands in the
furnishing and finishing industries,
the professionalism we espouse in
everything we do has been instrumental
to our phenomenal success this year,
given that we have always presented
solutions beyond our customer
expectations.
Innovation continues at the fore
The extensive portfolio of finishing and
furnishing we possess is primarily driven
on a platform of innovation. But our
mindset is not to simply present products
to the market, but rather to add value
to each of these through total solutions
and experiences. JAT has always been
associated with innovation and progress,
continuing as a champion in pioneering
pathways that would continually uplift the
industry on par with global expectations.
Representing the uniqueness of our
product philosophy, the JAT Tech Centers,
with its interactive use of high-end
technology and unique experiential
milieu, are now at the fore of fostering
and nurturing an initiative that would
position the industry as an internationally
acclaimed one. The Tech Centers use a
series of proactive interventions driven by
our team through to the dealer and then
cascaded to the Customer, the Brand and
Product, to ensure that the JAT portfolio
becomes strongly associated with the
End Customer.
The state-of-art JAT Tech Centers are
located in key cities around the country,
where our highly trained team imparts
their expertise and knowledge through
advice and training on a wide array of
subjects pertaining to modern exterior
and interior applications for commercial
and individual requirements. Each center
is contemporary in design, equipped
Operational Review contd.
JAT R&D facility

27
with high-end technology that provides
apt solutions for complex furnishing
and finishing queries. Our highly trained
team has also developed an innate ability
to offer solutions that are futuristic yet
practical, well ahead of its time. This
experiential center offers total solutions
encompassing project consultancy,
product recommendations, maintenance,
budgeting, site visits and product delivery.
It even customises technical training on
wood maintenance, wood finishing and
innovative colour applications where
necessary.
In fact, JAT has always stressed the
importance of uplifting industry standards
and this has permeated to a keen
enthusiasm in developing prevalent
skills. Given that the JAT Tech Centers
are the only facility in Sri Lanka equipped
with state of the art technology and a
highly trained team that can provide
training on both wood finishing and paint
applications aligned with international
standards, we are indeed proud to
conduct training and development
programmes for local contractors,
builders and consumers from around
the country. The ultimate goal being
pursued through this technical training is
in creating a group of highly skilled and
knowledgeable technical experts, whose
application of our training modalities
will surely create benchmarks within
the industry, developing it on par with
international standards.
The Tech Centers also use the concept
of innovative colour applications to
customise colour preferences and
requirements. Global paint giants Crown
and Permoglaze are strong partners
within our paint portfolio and is a boon
to the solutions we offer for paint include
colour matching, paint application
methods, spray painting methods and
decorative paint applications and even
customised industry requirements for
decorative paints, weather coatings,
interior emulsion paints, anti-corrosive
paints, enamels and a wide range of floor
and ceiling paints.
New Product Development
R&D is the bedrock to our progress as it
gives our unique brand of innovation the
drive to pioneer new paths in our product
portfolio. Our R&D laboratory remains the
most sophisticated in the country, being
equipped with technology and knowledge
on par with Crown Laboratories in
the UK. Armed with an enthusiasm to
constantly push boundaries, JAT has
earned the reputation of launching a host
of new products each year, including
introducing some of the most prestigious
and renowned brands in the world.
JAT has always been associated with
innovation and progress, continuing
as a champion in pioneering pathways
that would continually uplift the industry
on par with global expectations.
JAT Factory Production

28
Given below are some of our firsts and
pioneering products introduced last year:
• Coffee-Proof Wood Coating: A product
that can withstand even the most highly
pervasive coffee stain, Coffee Proof
is the first white waterborne coating
capable of resisting the most stubborn
stains and sets the benchmark high in
the wood coating industry.
• Sayerlack H2NO: A first for the world,
this super-hydrophobic water repellent
coating developed by Sherwin Williams
Italy is an invisible coating and forms
the ideal solution for wood protection
• Sayerlack Water Based Glass Coatings:
Another of our unique product offerings
given that all glass coatings available
on the market are solvent-based, is a
water based product range available in
varied designs and pigments designed
to deliver optimum performance, being
easy to apply is non-toxic and safe on
any glass.
• Fire Retardant Wood and Wall
Coatings: The combination of
uncompromising safety and high-end
finishes makes this range unique.
• Sancora: Textured decorative wall
paints.
• UV Coating: Introduced for the first
time in Sri Lanka, Bangladesh and the
Maldives, this instant drying coating
is subjected to drying under UV lights
adding strength and durability.
• Ergonomic Furniture: The pioneers in
introducing ergonomically designed
furniture for home and office through
the globally renowned Herman Miller
brand, this year JAT introduced a
monitor arm onto which the monitor
can be fixed, reducing physical
discomfort during long hours at work.
• Bamboo Decking: Adding a creative
touch to exteriors, the bamboo decks
are devoid of the inherent problems
that timber has, including shrinking,
cracking and perishing.
• Gossen Synthetic Decking: Also for
outdoor use, this is a 100% synthetic
timber product that can withstand the
vagaries of the weather.
Our manufacturing plants too continue to
gain impetus, aligned with our dynamic
R&D focus. Having ensured that our
manufacturing processes have gained
the requisite international accreditation,
we also established a waste water
treatment plant that would add value to
the ISO 14001 accreditation we possess
for Environmental Management Systems.
The SLS certification we possess is
higher in compliance demands than
prevalent British standards. The Company
has expanded and invested on high
capacity equipment for approximately
Rs. 100 million, including adding a
completely new line for emulsion, putty
and filler lines and packaging lines. We
intend to add more automation to the
packaging lines in the future as this is a
labour intensive process. The state of the
art manufacturing facility and laboratory
enables us to produce most products
manufactured by Crown in the UK.
The prestige we have earned and the
brand recognition we have gained from
our Stakeholders in Sri Lanka has seen
us provide finishing and furnishing to
some exceptional projects in the country.
Our prowess is embedded in the fact
that we have been associated with an
expansive gamut of buildings, some of
which are icons in the historical annals of
this country, contemporary architectural
masterpieces, public and private sector
institutions, places of religious worship
and diplomatic missions. From the
historic National Museum and Mount
Lavinia Hotel, to the newly restored
Arcade Independence Square, to the
President’s Office, Ministries of Justice
and Health, The British Council in both
Colombo and Jaffna, to the corporate
headquarters of Aitken Spence, Hayleys,
Nikini Automation, Ansell Lanka,
Haycarb, BT Options, DSI, DCSL and

29
Packwell Lanka, HSBC both in Sri Lanka
and the Maldives, the retail spaces of
Rocell, the US Embassy, WHO, USAID,
IFC, JAIC Hilton, MIT Campus and the
Koneswaram Kovil in Trincomalee have
all gained the creative artistry of JAT
finishes.
Presence in the Region
With our mission of ensuring that we
become the preferred supplier in the
South Asian region, JAT has been
strategically expanding our presence,
which in fact has seen added impetus this
year and a very successful quantitative
and qualitative performance as well.
The milestone achieved in our overseas
ventures was in entering the Indian
market which now adds to our presence
in Bangladesh, Seychelles and the
Maldives as well. Based in Bangalore,
we represent Sayerlack, the prestigious
paint brand owned by Sherwin Williams
which is the second largest paint company
and the largest wood coating company
in the world. A feature that adds to our
confidence is the fact that this global
giant believes in a Sri Lankan company's
ability and competence to push its brand
in a massive highly competitive market
like India. We compete with nearly fifty
international competitors, some of them
worldwide giants, but we do believe we
posses, not only a pioneering product
portfolio but also a visionary strategy to
work on the pragmatic blueprint we have
already conceptualised, to be successful
in this challenging market. We intend
growing by at least 200% in India in the
next year, positioning a team that will
be well trained and honed to exploit
opportunities that are prevalent in this
burgeoning market.
Bangladesh is one of our more successful
markets, having a well-etched presence
in that country for over a decade, despite
it being a price sensitive one. Being the
market leaders in wood finishing products
in Bangladesh, JAT is now perceived as
a corporate steward that can be relied on
for high quality, best practices and above
board marketing strategies. This has led
us to be held in high esteem within that
market and proactively give leadership to
numerous initiatives. In celebrating twenty
years of market leadership, JAT is this
year partnering with Futurex to sponsor
the international woodworking exhibition,
which will be titled under the JAT banner
as the JAT International Woodworking
Exhibition to be held in June. JAT has
previously been a firm partner in the
JAT Sri Lanka Wood Expo, both times it
was held and takes pride in the fact that
Bangladesh now considers JAT a primary
partner in its national events, which
certainly is a prestige we intend honing.
The strong position we have etched in
the resort-centered Maldives market is in
water based lacquer. While the financial
performance has remained average, this
is one market we will be focusing on in
the next few years with the intention of
growing our market share, positioning
The milestone achieved in our overseas
ventures was in entering the Indian
market which now adds to our
presence in Bangladesh, Seychelles
and the Maldives as well.

30
other apt products that are related to this
market as well.
The Seychelles too is a growing market
holding much promise. This was evident
when JAT showcased its premier
Sayerlack product range at the Food and
Hotel Seychelles 2014 Exhibition and
Culinary Challenge held in November
2014, joining over 100 companies from
the Seychelles, South Africa, Singapore
and the UAE. Given that this country
too is a resort-driven market, our focus
will be similar to that of the Maldives,
based on introducing a germane product
portfolio that will add value to market
requirements.
Ensuing Challenges
While the macro environment has had
a semblance of buoyancy, it must be
noted that the industry itself doesn't
always work on a level playing field.
JAT has always prided itself on being
an ethical, accountable, transparent
company that believes strongly in
governance and compliance. We
have maintained a culture of going
beyond compliance and have always
relied on recognised certifications and
accreditation to position our products
as being those of high quality. Each
of our certification and accreditations
are well earned and presented by
reputed international and Sri Lankan
certifications entities. Unfortunately, an
increasingly alarming feature we have
been observing permeating the industry
is the misrepresentation of standards
and accreditations, which does have a
negative impact on quality perceptions in
the market.
Similarly, there is also a blatant
disregard for compliance with taxation
and other regulatory diktats. This
allows some organisations to gain
an unfair financial advantage, as the
market is price sensitive, which doesn't
augur well for the sustainability of the
industry. Unethical marketing practices,
undercutting and unfair leeway for some,
pushes the industry into a quagmire,
which will surely see repercussions
soon. We have also been lobbying for
the reduction in taxation levels on raw
materials pertaining to the industry,
as it adds considerable expenditure to
companies who are operating ethically
and above board in an open market,
which will also heralds an improvement
in packaging quality.
From an internal perspective, JAT
has been working on uplifting the
competencies, skills and abilities of
our team. Staff retention tends to be a
significant challenge across the industry
and hence, the concerted efforts we have
infused to ensure that our team takes
ownership for the forward journey of our
Company has been fruitful. We believe
that our team has the dynamism to
spur our growth, creating benchmarks
that will be pioneering features in the
industry, while also cascading their
knowledge and skills for the upliftment of
the industry.
Looking Ahead
We look forward to an exciting year
ahead as we continue etching our
presence in this brand new world. While
our focus on India will take the lead in
our overseas expansion, we are also
pursuing possibilities in Nepal, Bhutan
and Pakistan in the immediate future.
There are also plans to penetrate within
Sri Lanka further, strategically locating
our presence in areas that have high
growth capacity. We will be re-looking at
our product portfolio and consolidating it
in the next year, concentrating more on
expanding market share by expanding
our presence. Product development
therefore will be maintained on a focused
platform of expansion and growth.
Award winning exhibition stall

31
We believe that our team has the
dynamism to spur our growth, creating
benchmarks that will be pioneering
features in the industry, while also
cascading their knowledge and skills
for the upliftment of the industry.
A new ERP solution will be implemented
across the Group, enabling interlinking
of all functions, processes and systems.
Maximising on technology, sales will be
automated with our sales teams being
equipped with palmtop PDAs to ensure
that information will be relayed in real
time and decision making will be efficient,
speedy and timely.
The JAT Business Enterprise Group will
be established in the coming year, using
our newly revamped website which will
soon become a reality. The JAT BEG will
enable Stakeholders to log into the site to
access technical data sheets and costings
on their own. Our interaction with social
media too will gain added impetus.
Our CSR initiative launched during
the year is also progressing well. Our
commitment to reduce maternal deaths
in Sri Lanka and the resultant negativities
that have destructive impacts in the
aftermath that such deaths leave in their
wake, saw JAT infuse a firm commitment
of a Rs 30 million in a state of the art
JAT Training and Simulation Center.
This project, in collaboration with the
Sri Lanka College of Obstetricians and
Gynecologists also intends to educate
and empower other Stakeholders in
that equation. The project is being
funded through sales generated from
Permoglaze. The foundation stone for the
Center was laid and construction is now
well underway, with completion billed in
2015.
We have articulated our immediate plans
for the future but do have a pragmatic
strategy that will ensure our consistent
performance, both qualitatively and
quantitatively. Within a strong framework
of innovation, quality and entrepreneurial
spirit, we intend to hone the strengths
we have thus far, while bridging the
gaps we observe by using our futuristic
outlook to maintain a strong and stable
business. Our existence in a brand new
world and our success in this milieu
depends entirely on how JAT continues to
position ourselves, in exploiting business
opportunities that emerge and in using
those opportunities to grow our business
sustainably. This we believe is the apt
formula for consistent stable growth,
with focus on the Stakeholders around us
and a need to continually raising the bar
in both industry and national standards.

Aerial view of JAT factory at Kahathudwa.

34
Awards
Effie Awards 2013 "Sayerlack — Take
Care of Them All" - In the Household
Supplies and Services Category for an
innovative Sayerlack Campaign.
Sri Lanka Institute of Architects Trade
Exhibition 2009 — Most Innovative
Trade Stall
Sri Lanka Institute of Architects Trade Exhibition 2013 -
Most Innovative & Informative Trade Stall.
Hotel Show 2010 - Most Innovative Stall HALAL WORLD AWARDS 2012 - Most
Innovative Product (For Brush Master
Paint Brushes)

35
JAT Holdings included in top ten
‘Strongest Conglomerate Brands’ - JAT
Holdings was recently included on the
Brands Finance Lanka top ten ‘Strongest
Conglomerate Brands’ ranking. Coming
in at number 9 and ranked alongside
companies such as John Keels Holdings,
Hayley’s and Aitken Spence, the
recognition is JAT’s first on the ranking
and comes on the heels of yet another
highly successful corporate season.
CNCI Achiever Awards 2014 – (The Ceylon National Chamber of Industries) National Merit Award under the Large Industries category.
National Business Excellence Awards 2014 - Runners Up - awarded the Silver Award
in the Trading category at the National Business Excellence Awards 2014.

36
Overall Company Performance -
Turnover and Profit
The Company achieved a Profit before
Tax of Rs. 640 million and a profit after
tax of Rs. 542 million a remarkable
achievement. The Company’s strategy
of focusing on new product lines whilst
concentrating on the core businesses,and
focusing on improved margins is the
main contributor for this excellent
performance.
The profit recorded is the highest in the
history of the Company. Company's
turnover grew by 18%, from Rs. 3 billion
to Rs. 3.5 Billion with revenue generated
from wood coating product range being
the largest contributor followed by the
export turnover. Gross profit increased
from 33% to 36%. The reduction in the
Company's finance cost by 13% from
Rs. 38 million to Rs. 33 million
contributed to the growth in profitability.
Export Sales 23%
Wood Coatings 62%
Decorative Paints 7%
Business Development Projects 4%
Brush Master 2%
Income from Projects 2%
Financial Review
Company's profit before tax amounted to
Rs. 640 million as compared to Rs. 445
million last year. Following the growth
in the profit before tax, the Company's
tax expense increased to Rs. 98 million.
Company profit after tax grew by 39%
to Rs. 542 million during the year under
review.
Cost of Sales and Operating
Expense Analysis
The cost of sales of the Group increased
from Rs. 2 billion in the financial year
2013/14 to Rs. 2.26 billion during the
year under review, growing 13%, and
absorbing 64% of Group Revenue. The
increase in cost of sales by 13%, well
below the average turnover increase of
18% recorded for the period, reiterates
the Company's ability to manage the
product portfolio whilst controlling costs
efficiently.
Administration costs of the Company
was Rs. 232 million during the year under
review, absorbing 6% of the company’s
revenue.
The company’s selling and distribution
costs, which include advertising
and promotional costs as well as
commissions paid on sales volumes,
escalated by 7.5% to reach Rs. 401
million during the year, accounting for
11% of the total revenue.
In cumulative terms, the administration
and distribution costs, along with the
cost of sales, comprised 81% of the
company’s revenue during the financial
year 2014/2015.
Finance cost to the Company during
2014/2015 was Rs. 33 million compared
to the cost of Rs. 38 million reported
in the previous year. The reduction
of finance cost by 13%, in the light of
the business growing is a remarkable
achievement. The main factors that
contributed to this achievement is
constant monitoring of work-in-capital
investments, healthy margins maintained
and attractive borrowing rates negotiated
with the lending institutions.
Cost of sales 77%
Admin cost 8%
S&D cost 14%
Finance 1%
Profit from Operations
The gross profit of the Company for the
financial year 2014/15 was Rs. 1.2 billion,
compared to Rs. 1 billion reported in
the previous financial year. Gross profit
margins amounted to 36% against a prior
year of 33%, the improvement in margins
being the efficient management of
product portfolio and cost management.
Other non-operating income for the year
was recorded Rs. 22 million which was
an increase of 31% compared to the
previous year.

37
Net profit before tax reported during
the year amounted to Rs. 640 million
against the prior year of Rs. 445 million,
a remarkable achievement. Projected
income tax payment for 2014/2015 is Rs.
98 million against a payment of Rs. 54
million in the prior year. Overall net profit
after tax is Rs. 542 million against last
year is performance of Rs. 390 million
which displays a remarkable growth of
39% which is a constant improvement
over the years.
11 12 13 14 15
0
100
200
300
400
500
600
Rs. Mn
Taxation
The Company’s income tax payable
increased by Rs. 44 million to reach 98
million in 2015. The effective tax rate for
the year ended 31st March 2015 was
15% compared to 12% in the previous
year. The increase was largely due to
increased profit levels and tax holiday on
concession for rubber based manufacture
being expired by 2014.
Shareholder Funds
The Company’s main source of capital
continued to be the retained earnings
which stood at Rs. 1.2 billion at the end of
the financial year. Total Shareholder funds
amounted to Rs. 1.8 billion against the
prior year standing of Rs. 1.5 billion which
reported a 23% improvement.
Fixed Assets
Net book value of fixed assets amounts
Rs. 598 million which mainly consists of
Land amounting to 165 million, Building
Rs. 198 million and motor vehicles Rs.
45 million. The Company in line with its
expansion program invested in plant,
vehicle fleet and buildings during the
financial year.
Financial Risks
The financial risks associated with the
Company are discussed in detail under
Financial Risk Management objectives
and policies under Notes to the Financial
Statement on page 95 of note 26.

38
In our Company’s quest to thrive as a valid,
vital and valuable corporate entity and with
our focus on increasing Stakeholder value,
JAT has always been a patron of believing
the age-old adage that one must give as
much as one receives. We have always
steered ourselves towards new frontiers
with our eyes, ears and hearts in the right
place, with a mission to uplift the livelihoods
of the under privileged social strata in the
country, to enhance the work conditions
of our employee base and offer society a
chance to augment their lives.
Your Company took calculated measures
in an attempt to further reduce maternal
deaths in Sri Lanka. JAT continues with its
multifaceted Corporate Social Responsibility
project, going for zero. In this noble
gesture to prevent maternal deaths during
pregnancy from occurring, JAT Holdings
commenced development of the estimated
Rs. 30 million state-of-the-art JAT Training
and Simulation Centre set up under the
auspices of the College of Obstetricians
& Gynecologists of Sri Lanka (SLCOG) at
Model Farm Road, Colombo 8. The JAT
Training and Simulation Centre is scheduled
to open in August 2015.
Sri Lanka’s maternal mortality rate of 35
for every 100,000 live births (CIA World Fact
Book) compared to most other developing
nations is highly commendable; we cannot
rest on these laurels but must endeavor to
reduce it to zero. Sri Lanka is almost unique
in that we investigate every maternal death
with meticulous precision. We have learnt
from these investigations that a sizeable
number of these deaths are preventable.
The JAT Training and Simulation Centre
will be equipped with the latest robotic
mannequins from USA, with the purpose
of utilising the aforesaid equipment to train
labor and delivery teams on how to react
in high-risk situations that could transpire
sporadically and spontaneously in a work
environment.
Recognising maternal and fetal distress
is an important skill every care provider
must have therefore, the most advanced
simulations should facilitate learning using
real diagnostic medical equipment. The
robotic mannequins support the widest
range of medical diagnostic equipment
of any tether-less maternal and neonatal
simulator. She blinks, breathes, and gives
birth. She can simulate low and high-risk
deliveries with an endless variation of
clinical presentations and can do so with
precise repeatability. The patented fetal
delivery system with its powerful control
software and a library of preprogrammed
scenarios is also equipped with a fetal
monitor, ECG monitor, defibrillator, pulse
oximeter and an automatic blood pressure
monitor device. Care providers can set-up
and operate real equipment, interpret
critical information and follow protocols just
as they would in real clinical situations. This
avails improved performance in specific
situations and gains valuable hands-on
experience.
In the real world no two labors are the
same. Every delivery is unique. Nature is
unpredictable. Care providers must be ready
to ensure the safety of the mother and baby
in any situation.
At JAT we believe that every mother is
precious and priceless and therefore the
loss of even one mother is a price too high
to bear.
Corporate Social Responsibility
JAT Training and Simulation Centre

39
Our People
The JAT Team
JAT’s stringent work ethic and collective vision to attain exceptional renown in the finishing
and furniture industry, is shaped into reality by our relentless workforce.
Our JAT family incorporates team players with a spirit of progression, competent personnel
that are experienced and skilled, inculcating our value system, embodying our vision and
equipped with the technical knowledge and wizardry to be on par with the industry’s finest.
Needless to say our workforce is our most valued asset. Led by a dynamic, cognizant
Board of Directors at the helm, our workforce fosters JAT’s core values, which include
an all-encompassing knowledge of the entire operational process, complete customer
orientation with a penchant to achieve maximum satisfaction with overwhelming finesse.
JAT encourages leadership at all levels and nurtures within its framework the requisite
to ascertain continuous improvement in all aspects of the business. We leave no stones
unturned!
We have soared to the apex of the industry as the undisputed leader in the wood coating
industry in Sri Lanka, Maldives and Bangladesh. Our success is owed at large to an array of
supporting factors that comprise of the Company ensuring breathtaking quality, unconditional
grace, facilitating a diverse and comprehensive range of products complemented by a vibrant
sales team which is experienced, vigilant, sedulous and motivated to provide excellent
technical support services.
Our team is truly empowered to address any situation by incorporating meticulous
monitoring and controlling systems to ensure the application of the strictest quality control
standards in keeping with ISO regulations at all times.
Our corporate culture is one that provides
JAT’s treasured Stakeholders with ample
opportunities to execute their goals with
steadfast responsibility, unfathomable
integrity and mesmerising creativity,
while evolving as individuals and a team,
accentuating their careers working with
passion and purpose to ensure our
business thrives. These measures have
enabled us to expand our list of satisfied
customers and to be an astoundingly
dynamic Company of international repute
further building brand equity and reaching
promising, unchartered terrain.
Technical Training for Staff

42
Corporate Governance
The Board of Directors of JAT Holdings (Pvt) Limited are cognizant and consistent, constantly focused and take responsibility to
maintain the highest standards of Corporate Governance, to ensure the integrity, accountability and transparency of all transactions,
whilst emphasising equal importance on business performance in order to ensure value creation. The Company has formulated its
Corporate Governance policies and practices to ensure that the Company is focused on its responsibilities to its Stakeholders. The
Company Stakeholders include Shareholders, Employees, Customers, and Suppliers.
This statement sets out the Corporate Governance policies, practices and processes adopted by the Board.
Corporate Governance Principle Detail
The Board Composition
The Board comprises of six Directors that includes 04 (Four) Executive Directors and
02 (Two) Non-Executive Directors. The Board has an appropriate balance of skills,
experience and independence to manage its duties and responsibilities effectively.
All the Directors are professional who have a wealth of knowledge in the field of
management, marketing and finance.
The table below displays the attendance of Directors at Board and Committee
Meetings held during the year
Name of Director Board
Meeting
Audit
Committee
Meeting
Remuneration
Committee
Meeting
Dr. S. Selliah 6/6 5/5 2/2
Aelian Gunawardene 6/6 - -
Jehan. P. Amaratunga 6/6 5/5 2/2
Indika Chandrasekara 6/6 - -
Somasundaram Sivasubramanium 6/6 - -
Lakmal Perera 6/6 - -
The Responsibilities of the Board
• Formulate, implement and monitor strategy.
• Internal Control and Risk Management.
• Compliance with laws, regulations and ethical standards.
• Ensure that all Stakeholder interests are considered in corporate decisions.
• Approval of budgets and corporate plans.

43
Directors Obtaining Independent Professional Advice
In performing their duties the Directors are permitted to seek independent professional
advice from external parties when necessary.
Director Training
The Directors are provided with adequate training for continuous development. Advice is
sought from external parties when there are major changes affecting the Company.
The Board has delegated responsibilities to 2 Board Subcommittees which operate with clearly defined terms.
a. Audit Committee The Committee is powered to examine any matters relating to the financial affairs of the
Company including external and internal audits.
Responsibilities of the Committee:
• The preparation, presentation and adequacy of disclosures in the quarterly and annual
financial statements of the Company, in accordance with the Sri Lanka Accounting
Standards.
• Ensure the Company complies with financial reporting requirements.
• Ensure the Company’s Internal Control and Risk Management are adequate to manage
and mitigate the risks that may occur in day to day operations of the Company.
• Ensure structured internal audit verifications are conducted and recommendations
implemented.
• Assess the independence and performance of the External Auditors and make
recommendations to the Board on the appointment /re-appointment of External
Auditors.
The Committee is composed of two independent directors. The Committee is headed by
Mr. Jehan Amaratunga a Fellow Member of the Institute of Chartered Accountants of Sri
Lanka and a Fellow Member of the Chartered Institute of Management Accountants UK.
Dr. Sivakumar Selliah represents the Committee as a Member.
The Committee met 5 times during the year under review.

44
Corporate Governance Report contd.
b. Remuneration Committee The Remuneration Committee is responsible for formulating:
• The Policy on remuneration for the Executive Staff.
• Speciﬁc remuneration package for the Executive Directors.
• Periodic reviews to ensure that the remunerations are in line with the market
conditions.
The Remuneration Committee consists of Dr.Sivakumar Selliah as the Head of the
Committee and Mr. Jehan Amaratunga as a Member. The Managing Director Mr.Aelian
Gunawardene is invited to join in the deliberations as and when required.
Internal Control Managing Internal Control
The Board has formulated and implemented comprehensive internal control systems
to safeguard the assets of the Company and ensures that comprehensive records are
maintained.
Clear guidelines of reporting and limits of authority have been established for operations.
Annual budgets are prepared and approved by the Board at the commencement of the
financial year. The Board monitors the monthly performance of the Company through
monthly management meetings.
Reviewing the Effectiveness of Internal Control
The effectiveness of the Internal Control system is periodically reviewed by the Audit
Committee and reported to the Board. The Internal Audit function is outsourced to Ernst &
Young advisory services.

45
Report of the Audit Committee
JAT Holdings (Private) Limited operates by national best practice guidelines and has appointed
the Audit Committee in line with the Listing Rules of the Colombo Stock Exchange. The Audit
Committee assists the Board to improve the existing system of operation to be more transparent.
The committee confirms to the best of their knowledge that the functions of the Audit Committee
are in accordance with the requirements under the Listing Rules of the Colombo Stock
Exchange for the purpose of adhering to best practices. The Committee has reviewed internal
control systems of all areas and recommendations received are submitted to the Board for
Implementation.
Composition
The Committee appointed by the Board Of Directors consists of two Independent Directors.
The Committee is headed by Mr.Jehan Amaratunga, a member of the Institute of Chartered
Accountants of Sri Lanka. Mr. Sivakumar Selliah Who represents the Committee as a member.
Meetings
There were 5 meetings of the Committee during the year under review.
Functions of the Committee
• The preparation, presentation and adequacy of disclosures in the quarterly and annual financial
statements of the Company, in accordance with the Sri Lanka Accounting Standards.
• Ensure the Company’s compliance with financial reporting requirements.
• Ensure the Company’s Internal Control and Risk Management are adequate to manage and
mitigate the risks that may occur in the day to day operations of the Company.
• Ensure structured internal audit verifications are conducted and recommendations
implemented.
• Assess the independence and performance of the External Auditors and make
recommendations to the Board on the appointment /re-appointment of External Auditors.
The Managing Director and Director Finance on request assists the Committee at these meetings
to formulate the recommendation.
Thanking you.
Best regards,
Jehan Amaratunga
Chairman – Audit Committee
30 May 2015

46
The Remuneration Committee, reporting to the Board of Directors, consists of two
Independent Directors; Dr. S. Selliah and Mr. J. Amaratunga. The Managing Director
Mr. Aelian Gunawardene attends these meetings on invitation to participate in the
deliberations.
The Committee is chaired by Dr. S. Selliah. The Committee met on two occasions during
the ﬁnancial year.
The Remuneration Committee has reviewed and recommended the following to the
Board of Directors:
1. The Policy on remuneration for the Executive Staff.
2. Speciﬁc Remuneration package for the Executive Directors.
3. Periodic reviews to ensure that the remunerations are in line with market conditions.
In a highly competitive environment retaining and attracting High Profile Executives is
a key challenge faced by the Company. In this context, the Committee has taken into
consideration competition, market information and business performance in declaring
the overall remuneration policy for the Company.
Dr. S. Selliah
Chairman- Remuneration Committee
30 May 2015
Report of the Remuneration Committee

47
The Directors are responsible under the Companies Act No: 7 of 2007, to ensure compliances of the
requirements set out therein to prepare financial statements for each financial year giving true and
fair view of the state of the affairs of the Company as at the balance sheet date and the profit of the
Company for the financial year.
Considering the present financial position of the Company and the forecasts for the next year, the
Directors have adopted the going concern basis for the preparation of these financial statements.
The Directors accept the responsibility for the integrity and objectivity of the financial statements
presented. The Directors confirm that the financial statements have been prepared;
1. Using appropriate accounting policies which have been and applied in a consistent manner, and
material departures, if any have been disclosed and explained: and
2. Presented in accordance with the Sri Lankan Accounting Standards; and that
3. Reasonable and prudent judgments and estimates have been made so that the form and substance
of transactions are properly reflected. And
4. Provides the information required by and otherwise comply with the Companies Act.
The Directors are responsible for the proper management of the resources of the Company hence
the internal control system has been designed and implemented to obtain reasonable assurance
that the company is protected from undue risks and fraud. The Directors are satisfied that the control
procedures are operated effectively during the year.
The Directors are required to prepare the financial statements and to provide the Auditors with every
opportunity to take whatever steps and undertake whatever inspections that maybe considered being
appropriate to enable them to give their audit opinion.
The Directors are of the view that they have duly discharged their responsibilities as set out in this
statement.
Compliance Report
The Directors confirm that to the best of their knowledge belief that all statutory payments in relation
to regulatory and statutory authorities that were due in respect of the Company and its Subsidiaries as
at the balance sheet date have been duly paid where relevantly provided for.
By Order of the Board,
RHN Holdings (Private) Limited
Secretaries to the Company
30 May 2015
Statement of Directors Responsibilities

48
The Directors of JAT Holdings (Pvt)
Limited have pleasure in presenting
their report together with the financial
statements for the financial year
2014/2015. The financial statements
were, approved by the Audit Committee
at the meeting held on 30th May 2015.
Principle Activities and Review
The company conducts its business
operations in a highly ethical manner
focusing on it vision and values.
The Company indulges in the operation
of Manufacturing and Distribution. The
Company manufactures decorative paints
and distributes islandwide, whilst it
trades in the business of wood coatings,
furnishing and wood based solutions
locally and internationally in the South
Asian region.
The Company is presently the market
leader for Sayerlack wood coatings and
wood based solutions in the country.
The Company is strongly concentrating
on the export market too which is
rapidly growing in volumes whilst also
concentrating on their other flagship
products such as Herman Miller,
Permoglaze, Armstrong, Gossen and
Brush Master which are world class
products of the Sri Lankan market.
Expansions and Future Developments
The Company intends to grow in terms
of acquisitions and forming strategic
alliances when appropriate opportunities
arise.
Revenue
Revenue of the Company for the financial
year amounted Rs. 3.5 billion, with
turnover from the wood coating product
range to the local market being the
highest contributor, followed by revenue
generated to export market.
Taxation
It is the Company’s policy to provide for
deferred taxation on all expected timing
differences. The provision for current
taxation is computed according to the
Inland Revenue act number 10 of 2006
and amendment there to.
Property Plant and Equipment
Capital expenditure of property, plant and
equipment incurred during the year under
review amounted to Rs. 205 million.
Information pertaining to this is given
in page 74 in note 4.1 to the financial
statements. Land is included in the
financial statements at lower of cost re-
valuation. The value of property stated in
the financial statements is not in excess
of the market value.
Share Capital
The total issued and paid up share capital
of the Company amounted to Rs. 628
million as at 31st March 2015.
Reserves
The total reserves of the Company have
increased to Rs. 1.2 billion as at 31st
March 2015 from Rs. 860 million as at
31st March 2014. The detailed movement
in reserves is shown in the statement
of changes in equity, on page 56 of this
report.
Major Shareholders
The major Shareholders and the
percentage held by each of them as at
31st March 2015 is given in page 98
under shareholder information.
Directors
The names of the Directors who served
during the year are given in page 16
under the caption “Board of Directors”.
Directors Shareholding
The shareholding of Directors as at end of
the period is given in page number 98 of
this report.
Environmental Protection
The Company has not engaged in any
activities, which are detrimental or
hazardous to the environment.
Statutory Payments
The Directors to the best of their
knowledge and belief are satisfied that all
statutory dues owing to the Government
and employees have been made as due.
Events Subsequent to the Balance
Sheet Date
There have been no material events
that need to be adjusted in the financial
statements subsequent to the balance
sheet date.
Corporate Governance and Internal
Control
The practice operational in relation to
Corporate governance and internal
control in the Company is set out in page
42 of this report.
Annual Report of the Board of Directors

49
Directors Responsibility to Financial
Statements
The Directors responsibility for the
financial reporting of the Company is set
out in page 47 of this report.
Going Concern
The Board of Directors is satisfied that
the Company has adequate resources to
continue its operation in the foreseeable
future. Accordingly the financial
statements are prepared on the principle
of going concern.
Annual General Meeting
The Annual General Meeting will be
held at the registered office of the
company, No 351, Pannipitiya Road,
Thalawathugoda on 16th July 2015
at 4.00 p.m. The notice of the Annual
General Meeting is on page 101 of this
report.
Auditors
M/s Ernst & Young Chartered
accountants were the External auditors
of the Company for the financial year
2014/2015.
By Order of the Board
RHN Holdings (Private) Limited
Secretaries to the Company
30 May 2015

52
Financial Reports
Independent Auditors' Report 53 Statement of Profit or Loss and other Comprehensive Income 54
Statement of Financial Position 55 Statement of Changes in Equity 56 Statement of Cash Flow 57
Notes to the Financial Statements 59

53
Independent Auditors' Report
MPDC/DM/DM
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF JAT HOLDINGS (PRIVATE) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of
JAT Holdings (Pvt) Ltd, (“the Company”), and the consolidated
financial statements of the Company and its subsidiaries
(“Group”), which comprise the statement of financial position as
at March 31, 2015, and the statement of profit or loss and other
comprehensive income, statement of changes in equity and,
cash flow statement for the year then ended, and a summary
of significant accounting policies and other explanatory
information. The Financial Statements of the Company as at
31 March 2014 and for the year then ended were audited by
another auditor whose report dated 31 July 2014 expressed an
unqualified opinion on such financial statements.
Board’s Responsibility for the Financial Statements
The Board of Directors (“Board”) is responsible for the
preparation of these financial statements that give a true and
fair view in accordance with Sri Lanka Accounting Standards and
for such internal control as the Board determines necessary to
enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with Sri Lanka Auditing Standards. Those standards
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers internal
control relevant to the entity’s preparation of the financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Board,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements give a true
and fair view of the financial position of the Group as at March
31, 2015, and of its financial performance and cash flows for
the year then ended in accordance with Sri Lanka Accounting
Standards.
Report on Other Legal and Regulatory Requirements
As required by Section 163(2) of the Companies Act No. 7 of
2007, we state the following:
a) The basis of opinion and scope and limitations of the audit
are as stated above.
b) In our opinion :
we have obtained all the information and explanations that
were required for the audit and, as far as appears from our
examination, proper accounting records have been kept by
the Company.
The financial statements of the Company give a true and fair
view of the financial position as at 31 March 2015, and of its
financial performance and cash flows for the year then ended
in accordance with Sri Lanka Accounting Standards, and
The financial statements of the Company and the group
comply with the requirements of Section 151 and 153 of the
Companies Act No. 07 of 2007.
30 May 2015
Colombo

54
Group Company
Year Ended 31 March 2015 Note 2015 2015 2014
Rs. Rs. Rs.
Revenue 16 3,546,165,115 3,539,403,115 2,992,617,332
Cost of Sales (2,265,408,527) (2,260,576,932) (2,006,415,032)
Gross Profit 1,280,756,588 1,278,826,183 986,202,300
Other Income 17 22,624,612 22,624,612 17,263,328
Selling and Distribution Costs (400,682,833) (400,347,058) (373,234,405)
Administrative Expenses (231,973,533) (227,352,514) (148,621,769)
Finance Cost 18 (33,310,188) (33,310,166) (38,101,305)
Finance Income 19 2,491,214 2,491,214 1,612,163
Profit Before Tax 20 639,905,861 642,932,272 445,120,312
Income Tax Expense 21 (98,273,619) (99,121,014) (54,222,351)
Profit For The Year 541,632,242 543,811,258 390,897,961
Earning Per Share - Basic 1.22 1.23 0.88
Other Comprehensive Income
Other Comprehensive income not to be reclassified to profit or loss in subsequent periods
Actuarial Gains/(Losses) On Defined Benefit Plans - Net Of Tax Effect (1,642,884) (1,642,884) 1,535,347
Total Comprehensive Income 539,989,358 542,168,374 392,433,308
The Accounting Policies and Notes on pages 59 to 97 form an integral part of these financial statements.
Statement of Profit or Loss and other
Comprehensive Income

55
Group Company
As at 31 March 2015 Note 2015 2015 2014 2013
Rs. Rs. Rs. Rs.
ASSETS
Non-Current Assets
Property, Plant and Equipment 4 598,750,044 598,531,585 459,713,230 362,104,556
Intangible Assets 5 1,550,552 1,550,552 1,571,052 3,133,518
Investment In Subsidiary 6 - 1,000,000 - -
Deferred Tax Asset 21.2 847,395 - - -
Biological Assets 6.1 7,500,000 7,500,000 7,500,000 5,625,000
608,647,991 608,582,137 468,784,282 370,863,074
Current Assets
Inventories 7 721,088,442 721,088,442 808,737,674 348,719,709
Trade and Other Receivables 8 1,345,863,115 1,345,833,115 1,028,357,256 652,338,728
Advances and Prepayments 111,793,630 111,793,630 107,324,792 12,692,952
Amount Due From Related Parties 9 201,686,846 203,700,745 123,700,974 62,877,396
Other Financial Assets 10 144,150 144,150 330 -
Cash and Bank Balances 15 97,793,702 97,473,218 38,251,774 60,678,919
2,478,369,885 2,480,033,299 2,106,372,795 1,137,307,705
Total Assets 3,087,017,876 3,088,615,437 2,575,157,077 1,508,170,779
Equity And Liabilities
Capital and Reserves
Stated Capital 11 628,770,000 628,770,000 628,770,000 900,000
Retained Earnings 1,200,909,271 1,203,088,287 860,592,113 580,208,805
Total Equity 1,829,679,271 1,831,858,287 1,489,362,113 581,108,805
Non-Current Liabilities
Interest Bearing Loans and Borrowings 13 8,739,473 8,739,473 14,965,627 24,215,162
Retirement Benefit Obligation 12 23,019,385 23,019,385 16,624,393 14,658,069
Deferred Tax Liability 21.2 4,644,867 4,644,867 1,498,163 2,435,183
36,403,725 36,403,725 33,088,183 41,308,414
Current Liabilities
Trade and Other Payables 14 711,260,403 710,678,948 601,176,582 355,316,460
Amount Due to Related Parties - - - 324,404,103
Interest Bearing Loans and Borrowings 13 461,613,993 461,613,993 411,634,333 181,876,416
Income Tax Payable 48,060,485 48,060,485 39,895,866 24,156,581
1,220,934,880 1,220,353,425 1,052,706,781 885,753,560
Total Equity and Liabilities 3,087,017,876 3,088,615,437 2,575,157,077 1,508,170,779
These financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
H. C. J. Goonawardhana
Director Finance Reporting and Controlling
The Board of Directors the responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of
the Board by:
Aelian Gunawardene S. Sivasubramaniam
Managing Director Director Finance Treasury and Commercial

30 May 2015
Colombo
Statement of Financial Position

56
Year Ended 31 March 2015
Group Stated Capital Retained Earnings Total
Rs. Rs. Rs.

Balance as at 01st April 2013 900,000 584,047,678 584,947,678
Adjustments On The Transition Date (3,838,873) (3,838,873)
Balance as at 01 April 2013 900,000 580,208,805 581,108,805
Shares Issued During The Year 627,870,000 - 627,870,000
Profit For The Year - 392,433,308 392,433,308
Dividend 2012/13 - (39,150,000) (39,150,000)
Interim Dividend 2013/14 - (72,900,000) (72,900,000)
Balance as at 31st March 2014 628,770,000 860,592,113 1,489,362,113
Other Comprehensive Income - (1,642,884) (1,642,884)
Total Comprehensive income - 539,989,358 539,989,358
Dividend 2013/14 - (88,743,200) (88,743,200)
Balance as at 31st March 2015 628,770,000 1,200,909,271 1,829,679,271
Year Ended 31 March 2015
Company Stated Capital Retained Earnings Total
Rs. Rs. Rs.
Balance as at 01st April 2013 900,000 584,047,678 584,947,678
Adjustments On The Transition Date (3,838,873) (3,838,873)
Balance as at 01 April 2013 900,000 580,208,805 581,108,805
Shares Issued During The Year 627,870,000 - 627,870,000
Dividend 2012/13 - (39,150,000) (39,150,000)
Balance as at 31st March 2014 628,770,000 860,592,113 1,489,362,113
Profit for the year - 543,811,258 543,811,258
Other Comprehensive Income - (1,642,884) (1,642,884)
Total Comprehensive income - 542,168,374 542,168,374
Dividend 2013/14 - (88,743,200) (88,743,200)
Balance as at 31st March 2015 628,770,000 1,203,088,287 1,831,858,287
Statement of Changes in Equity

57
Group Company
Year Ended 31 March 2015 Note 2015 2015 2014
Rs. Rs. Rs.
Cash Flows From / (Used in) Operating Activities
Profit Before Tax 639,905,861 642,932,272 445,120,312
Adjustments for,
Depreciation 4.2 48,694,500 48,664,909 26,863,792
Amortisation For Intangible Assets 5 735,904 735,904 1,562,466
Provision For Defined Benefit Plans 12 4,324,838 4,324,838 3,501,672
Inventory Write off 15,612,990 15,612,990 3,814,819
Disposal (Gain)/Loss on PPE (479,101) (479,101) (338,870)
Bad Debt Provision 6,000,000 6,000,000 13,779,116
Finance Income (2,491,214) (2,491,214) (1,612,163)
Write Back Of Long Term Investment Provision - - (1,875,000)
Finance Costs 18 33,310,188 33,310,166 38,101,305
Operating Loss Before Working Capital Changes 745,613,966 748,610,764 528,917,451
(Increase) / Decrease In Inventories 72,036,242 72,036,242 (463,832,784)
(Increase) / Decrease In Trade and Other Receivables (321,014,645) (320,984,645) (386,482,476)
(Increase) / Decrease In Amount Due From Related Parties (77,985,872) (79,999,771) (57,335,410)
(Increase)/Decrease In Advances & Prepayments (4,468,838) (4,468,838) (94,631,840)
Increase / (Decrease) In Amount Due to Related Parties - - (313,054,490)
Increase / (Decrease) In Trade & Other Payables 110,083,821 109,502,366 234,510,509
Cash Generated From Operations 524,264,675 524,696,119 (551,909,041)
Tax Paid (87,170,793) (87,170,793) (41,123,085)
Gratuity Paid (211,630) (211,630) -
Finance Costs Paid (33,310,188) (33,310,166) (38,101,305)
Net Cash From/(Used In) Operating Activities 403,572,063 404,003,529 (631,133,431)
Statement of Cash Flow

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