UNIVERSITY OF JAFFNA- SRI LANKA

FACULTY OF MANAGEMENT STUDIES & COMMERCE

DEPARTMENT OF ACCOUNTING

BBAA1223: FINANCIAL ACCOUNTING-II

ASSIGNMENT-I

SUBMITTED BY:

QUICKBOOKS

DATE OF SUBMISSION: 05TH SEPTEMBER 2016

MEMBERS OF THE GROUP “QUICKBOOKS”SERIAL

NO.REGISTRATIO

N NO.

INDEX NO. FULL NAME SIGNATURE

01 2015/BAD/172 BAD 15172 RAMANA ARULTHAS

02 2015/BAD/185 BAD 15185 RUKSHALINI KALANAYAKAM

03 2015/BAD/203 BAD 15203 WARNAKULASOORIYA ISHANKA SEWWANDI

04 2015/BAD/205 BAD 15205 SHAMINI SIVAKUMAR

05 2015/BAD/226 BAD 15226 BEULAH MECDALIN KAMADCHISUNTHARAM

06 2015/BAD/229 BAD 15229 PUSHPANATHAN SURENTHIRAN

07 2015/BAD/266 BAD 15266 VINOTHRA RAJENDRAN

08 2015/BAD/276 BAD 15276 NADEEKA WICKRAMARATHNA

09 2015/BAD/285 BAD 15285 YASODANI RAJARATHNAM

10 2015/BAD/300 BAD 15300 HERATH MADIYANSELAGE ISHAN MADHUSANKHA EKNELIGODA

11 2015/BAD/303 BAD 15303 MADANA HITI BANDARALAGE THARINDU PRABHATH MADUSHANKA

HEMAS HOLDINGS PLC.

Hemas has grown over 63 years to reach customers at all corners of Sri Lanka and the world, serving varied industry sectors. This company is the most reputed company among people.

HEMAS HOLDINGS PLC. & CRR

The CRR is now a days very considerable thing which is very much important for a company’s sustainability. It is not only earning profit for their own wealth but also do something to the society where you could sell your products.

Under this concept major CRR list is given below:-

Environment (E)1 Pollution control/ abatement 2 Environmental conservation and repairs 3 Energy conservation 4 Resource conservation and waste management 5 ISO 9000/9001 (Environmental Management System) certification 6 Environmental awards 7 Other commitments towards environmental protection/ sustainability Community1 Education 2 Charity 3 Art, culture and heritage 4 Equality in community 5 Youth development and graduate employment programme 6 Employees participation in community service 7 Community health and safety 8 Community and infrastructure support 9 Community awards 10 Community engagement 11 Support for national pride/ government sponsored campaigns Workplace1 Employee health and safety (H&S) 2 Human capital development 3 Workplace diversity and equal opportunity 4 Employee appreciation 5 OHSAS (Occupational Health and Safety Management System) certification 6 Employee relation/ engagement 7 Workplace awards 8 Employee remuneration, benefit and assistance 9 Work-life balance 10 Industrial relations Marketplace (M1)1 Product development 2 Product/ service quality 3 Product/ service safety 4 Corporate governance 5 Supplier relation/ engagement 6 Customer relation/ satisfaction 7 Stakeholder engagement 8 Other Stakeholders’ matters 9 Marketplace awards

Others (O)1 CSR reporting standard/ quality 2 CSR committee 3 Other commitment statement to CSR

Report:

Our group work out as per the heading given. We select HEMAS HOLDING PLC for our assignment. The company has high reputation among people on mainly health care service. These are our findings about their CRR.

1. ENVIRONMENT

Pollution control and abatement

Environment is now a crucial part of the society. HEMAS give a part to this as follows, to make world environment day 2014, the HEMAS club launched a food waste management programme at the hemas house criteria. The project adopt a simple form of processing to decompose and recycle food waste to generate soil conditioner or organic fertilizer.

The club also undertake events such as an excursion to the kanneliya tropical rain forest and a beach clean up initiative on the wellawatta beach, with the help of volunteers from across the group, including the senior leadership.

In December 2014 the club organized a photographic exhibition for nature lovers within the group; the overwhelming response of over 1000 applications demonstrated the talent of their team.

The transportation sector focuses on reducing emissions and the use of fossil fuel through initiatives, such as preventive maintenance of trucks to reduce carbon emissions and installing GPS monitor fuel consumption. Used tyres are rebuilt in order to ensure multiple usage. At the sector’s yards, waste water treatment plants ensure that polluted water is treated before release.

Environmental conservation and repairs

The HEMAS group’s green pledge promises that “we take responsibility; as individuals and collectively as part of the HEMAS group to minimize harmful practices and embrace emerging trends, that will help us leave a more gentle environmental footprint”, stemming from the pledge, each employee and business unit is committed to managing environmental impacts through multiple measures that are constantly reviewed and improved to ensure maximum effectiveness.

The group’s environmental policy dictated their green business ethos, and is mandated to operations across all sectors. All of their operating units monitor and report on their environmental foot print in terms of energy, water and waste.

The HEMAS green club, a voluntary environmental conservation group, was established at HEMAS in 2013 with the objective of inspiring and engaging employees to think green. The green club launched a string of initiatives in 2013 to increase environmental awareness and reduce the group’s carbon foot print; these included group initiatives, internal e- based campaigns and quarterly forums featuring guest speakers with a passion for conservation.

Company across the group also practice paper recycling and are encouraged to dispose of e-waste in an environmentally friendly manner.

Energy conservation

One of the earliest green club initiatives has been the modification of the flushing mechanism in the men’s toilets at HEMAS house. Club members found that urinals operated on auto flush mechanisms which were flushing at pre-set intervals throughout the day. The observation along with suggestions to mitigate the issues were brought to the notice of HEMAS developments, which overlooks the management HEMAS house. In return the HEMAS developments management took measures in june 2014 to install sensor and manual flush valves in men’s toilets, leading to conservation of water and the reduction of water bills by 40%-50%.

Handling hospital waste requires extra care, and at HEMAS hospitals they follow internationally accepted standards of waste disposal in compliance with the requirements of the central environmental authority (CEA) each HEMAS hospital operators its own waste water treatment plant, with the water quality checked regularly to ensure compliance. In fact, the tertiary treatment plant at HEMAS hospital in thalawatugoda is considered one of the best plants of its find in the country.

Resource conservation and waste management

HEMAS company always give preference for waste management and resource conservation. In manufacturing process almost 100% of the waste water and human usage is treated and recycled at 2 treatment plants, which is then used for irrigating flora. The sludge and 80% of the solid water (polythene, paper, glass, plastics, oil and metal) is geo cycled meeting ISO 14000 standard.

HEMAS hotels also has embarked on initiatives to help, conserve and enrich the environment. Hotel sigiriya leads the way in the group’s green initiative due to its location in an area that is rich in bio diversity. Also the company have been implemented some of the measures during the year.

Energy conservation

Solar water healing panels

Card key switching of room air conditioning

Scheduled light switching

Change to CFL lighting

Installation of biomass gasitier for steam production

Water conservation

Self contained biological sewerage plant

Discharged water used for garden irrigation

Water saving cisterns

Optional reuse of room linen approximately 30,000 and of treated water output from sewage treatment plant per day are used for irrigation

Solid waste management

Graduation of garbage and recycling, reusing, redusing

Composting of garden refuse including vermin-composting

Reduced use of plastic

ISO 9000/9001 certificate

HEMAS company is the first personal care products manufactures in Sri Lanka to receive ISO 9000 accrediation. A company that conforms to ISO 9001 requirements is assured of consistency in its products batch. The ISO 9001:2008 certified laboratory chain of HEMAS hospital operates the only fully automated laboratory with a system of bar coding, inter facing and integration in the country.

Environmental awards

Receiving awards for environmental sustainability is one of the major CSR environmental aspect, which build a major image about company towards society. HEMAS company also have received so many environmental awards, such as

Award of excellence by the Asian institute of management, in recognition as an outstanding, innovative and sustainable project in asia at the annual CSR awards 2007, ho chi min city Vietnam.

Green awards (for value hotels) best of country award (2008) from IRHA Winner of the best disaster relief award (tsunami 2004) awarded by Ceylon chamber of

commerce, for providing support and improving education in the Asian region. The ministry of child development and women’s affairs has appointed HEMAS to the

national coordination committee on early childhood development (ECD), the body to oversee the development and implementation of national policy on ECD and also appointed as provincial level committee in the country.

These above awards are evidence that HEMAS company adopting CSR environmental aspects.

Other commitments towards environmental protection/ sustainability

According to HEMAS sustainability report the company focusing on some other commitments towards environmental protection such as,

Piyawara

HEMAS outreach foundation implements our community based initiatives in promoting early childhood development in Sri Lanka in partnership with the children’s secretariat of the ministry

of child development women’s affairs. HEMAS outreach foundation is an approved by government

Environment

In supporting sustainability in the communities they work in, each sector of HEMAS is involved in activities that held uplift the communities or protect the environment. Through these initiatives they also hope to improve awareness of their employees on the responsibility of humans to the greater society.

Sector initiatives

HEMAS involve in activity which uplift the society, community and protect environment. This helps for awareness of employees.

2. COMMUNITY

Education

HEMAS higher learning academy conducted several training programmes geared. To add value to HEMAS personal and thus enhance the value they they give customer

Management development programme Advanced English development programme Urban challenge 1 and 2 Employee welfare at HEMAS southern hospital

Charity

The school currently service approximately 82 children with that numbers steadily increasing due to resettlement in the area.

During the year under review their key objective was to built a model pre-school in Jaffna. The construction was undertaken in UNOPS, and was completed in November 2010 at a total cost of Rs.72,024,381. The school was officially handed over to the major of Jaffna in January

HEMAS is responsible for supporting 33 ECCD centres, school baced activities include teacher training and parental awareness programmes. Intelligent, t oriented interactive and target oriented.

Equality in community

Independence of members of community- The audit committee nomination, currently consist of the audit and remuneration committees and a nomination committee appoint during the year from time to time. The board may from a new committee or disband a current committee, each standing committee has a character, which it will receive annually.

Conduct of meetings- Board and committee meetings will be conducted in a manner that ensures open communication, meaningful participation and timely resolution of issues, whenever feasible, directors will receive material concerning matters to be acted upon well in advance of the applicable meeting to reviewed regularly by the audit committee which then reports to the board.

Community awards

HEMAS company has received ‘Top Community Care Company in Asia 2014’ and ‘Best CSR Campaign of the Year’ award.

3. Workplace

Employee health and safety

Employees’ health is a significant aspect now. With a view to increasing the mental and physical wellbeing of employees and thus the overall productivity of the company. A mini gymnasium was established within the colpetty office complex which included the services of a physical trainer.

Human capital development

Assessment for personal development:- HR formulated and established assessment/ personal development centres and carried out 4 days of rigorous assessments for 18 managers, assistant managers using conventionally accepted testing tools including group discussion, case studied, oral presentations structured, interviews, psychometric as well as numeric tests. Based on the outcome, a personalized ‘assessment report’ was prepared and an individual development plan formulated for each manager thus ensuring transparency, clarity and career progression.

Focused training and development:- The total number of training programmes conducted during the year totaled 217, which amounted to 1074 hours of training for the year. The programmes conducted included clinical programmes as well as management development and soft skills development sessions. External expertise was brought in wherever possible to support the training programme.

Employee appreciation

In addition to paying annual bounced based on both individual and group performance the group offers share incentive schemes to senior management and to staff who the group has identified as future leaders.

The awards that are most looked forward to, the CEO’s awards are presented to senior managers and managers who have made an outstanding contribution to the success of the company to which they belong within the HEMAS group. The annual event recognizes excellence in every industry in which the group operates.

Occupational health and safety management system

In addition to providing meals to all staff, accommodation is also provided for those residing in distant areas. A medical insurance scheme covering the staff member and his or her immediate family was introduced.

Employee relation/ engagement

HEMAS hospitals takes a series of measures to ensure positive working relationships with employees. We set up joint consultative committees at both hospitals, with representatives from the staff, departments and hospital administration. The committees are a tool to promote mutual understanding and create better working relationships between staff and management. It is also a mechanism through which employees can play a greater role within the company planning process. Furthermore we also formed a hostel user committee to enhance support for employees using the staff hostel activities.

Workplace awards

National productivity award – GOLD, presented by the national productivity secretariat under the ministry of labour relations and productivity promotion.

CNCI industrial excellence award – GOLD, presented by Ceylon chamber of commerce. National quality award – GOLD, presented by the Sri Lanka standards institution.

Employee remuneration benefit and assistance

Assistance:- In order to encourage staff members to focus on their children’s education, a scholarship scheme is offered to children who pass the year 5 scholarship with high marks financial assistance is provided to the child who scores the highest marks and qualifies to enter a popular school. The payment is made monthly until the child enters GCE Advanced Level.

Remuneration;- The group’s philosophy is to remunerate its directors, executives and staff by paying them competitively structured packages. In determining the remuneration policy and size of the awards, the remuneration committee takes account of structures and levels of remuneration for executive directors and senior managers in other substantial companies that it regards as appropriate comparators and of such companies’ stated remuneration policies.

Work life balance

During the year, several group level initiatives were taken to strengthen employee relations; these included fun Friday, a quarterly event where staff representing each sectoral business showcase their talents. The group also organized vision 2020, a session to drive the group’s overall strategy. Across all of their sectors, the employee engagement activities include events such as annual sports days, Christmas parties and talent shows while most sector business also

conduct an annual awards night to recognize and reward top performers. Throughout the year, a special effort is made to embrace diversity with all staff celebrating each other’s religious festivals.

Celebrations and fellowship:- The company encourages work life balance by supporting an annual staff trip while also organizing a christmas party for staff and their families, where all children are presented with gifts.

Urban challenge 1 and 2:- 30 directors participated in this exciting programme that featured team building and leadership exercise set in a high pressure urban environment. Based on the success of the event a similar programme was subsequently carried out for the HEMAS corporate office, vishwa BPO and IT division.

4. Marketplace

Stakeholder engagement

HEMAS holdings has a goal in stakeholder engagement that each sector must prioritize its key stakeholders and engage with prioritize stakeholder groups through a two way communication process once every 2 years.

As this is a complex process sustainability team and senior management team together shortlisted their stakeholders. So they divide their stakeholders into

Who could potentially influence their business Who may be affected by their business Those who bear legal, operational and financial responsibilities towards our business.

Key stakeholders are- investors, employees, customers, suppliers and business partners, the community, the environment. In order to continuously gauge their impact on their stakeholders and their relevance, they engaged with all these stakeholders through both formal and informal channels.

Customer relation/satisfaction

Their business work with a cross section of customers from both the individual and B2B segments. They held some ongoing programmes to maintain good customer relationship and satisfaction. Such as trade fair, industry exhibition, customer complaint hot line/ social media/ marketing communication and also interaction through customer meetings/ progress reviews.

Supplier relation and engagement

They engage suppliers to ensure efficiency of the supply chain and to share best practices. To maintain good relationship they are meeting contractual obligations, technical assistance and knowledge transfer, building long term partnerships. Also they engage regular meetings, review and forums.

Corporate governance

At HEMAS, they understand that having a common governance framework plays an important role in helping the Board of Directors gain a better understanding of their oversight role. They believe this would contribute to effective governance and address governance risk and help evaluate how the responsibilities of the Company’s management measure against the Board’s oversight responsibilities. For corporate governance each company is being governed by board and each subsidies have equal balance of power.

Product/service quality

As HEMAS is a service conglomerate they want to enrich lives of people. They give their best to people in service providing. The sector maintains a benchmarking mechanism to observe its competitive position on quality parameters of product and packaging.

Product development

The company has launched some product development programmes. Such as,

Clogard school activation programme Baby cheramy mother clinics JLM community project Building ecosystems around hostels

According to other aspect we included CSR awards and committee issues in environment sector.

Conclusion

This is the end of our report. According to this we could able to find CRR of HEMAS company, which is highly adapting these in its’ annual report.

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