E-CHANNELLING PLC - Annual Report 2010

8/6/2019 E-CHANNELLING PLC - Annual Report 2010

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Contents



Name of the Company

Legal Form

Directors

Secretaries and Registers

Auditors

Bankers

Registered Office of the Company



Chairmanʼs Review



CEOʼs Review



e-Channelling Performance Charts



Mr. Suresh Bartlett

Chairman / Independent, Non-Executive Director

Mr. Chandima Hemachandra

Non-Independent, Non-Executive Director

Board of Directors

Mr. Ruwan Silva

Non-Independent, Non-Executive Director

Mr. Thanuja WeeratneNon-Independent, Non-Executive Director



Board of Directors (Contd)

MR. P. Kudabalage

Non Independent, Non- Executive Director



Report of the Directors on the Affairs of the Company

Review of the Year

Principal Activity

Auditorʼs Report

Financial Statements

Accounting Policies

Directorsʼ Interest

Directorsʼ Remuneration and Other Benefits

Corporate Donations

Directors and their Shareholdings

31.03.2010 31.03.2009

Auditors



Report of the Directors on the Affairs of the Company (Contd)

Dividends

Investments

Intangible Assets

Property, Plant and Equipment

Capital Commitments

Stated Capital

Reserves

Events subsequent to the Balance Sheet date

Employment Policies

Taxation

Disclosure as per Colombo Stock Exchange Rule No.7.6

31.03.10 31.03.09

Shareholding

Major Shareholders

Statutory Payments



Report of the Directors on the Affairs of the Company (Contd)

Environment, Health and Safety

Corporate Governance

Contingent Liabilities

Post Balance Sheet Events

Annual General Meeting



Report of the Auditors

KPMG Ford, Rhodes, Thornton & Co, a Sri Lankan Partnership

and a member firm of the KPMG network of independent

member firms affiliated with KPMG International cooperative

(“KPMG International”), a Swiss entity .

A.N. Fernando FCA S. Sirikananathan FCA M.R. Mihular FCA

Ms. M.P. Perera FCA P.Y.S. Perera FCA C.P. Jayatil ake FCA

T.J.S. Rajakarier FCA W.W.J.C. Perera FCA Ms. S. Joseph ACA

Ms. S.M.B. Jayasekara ACA W.K.D.C. Abeyrathne ACA S.T.D.L. Perera ACA

INDEPENDENT AUDITORS’ REPORT

TO THE SHAREHOLDERS OF E-CHANNELLING PLC

Report on the Financial Statements

We have audited the accompanying financial statements of E-Channelling PLC(the “Company”), whichcomprise the balance sheet as at March 31, 2010, and the income statement, statement of changes in equityand cash flow statement for the year then ended, and a summary of significant accounting policies and other

explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with Sri Lanka Accounting Standards. This responsibility includes: designing, implementing

and maintaining internal control relevant to the preparation and fair presentation of financial statementsthat are free from material misstatement, whether due to fraud or error; selecting and applying appropriateaccounting policies; and making accounting estimates that are reasonable in the circumstances.

Scope of Audit and Basis of Opinion

Our responsibility is to express an opinion on these financial statements based on our audit. We conductedour audit in accordance with Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from materialmisstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accounting policies used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation.

We have obtained all the information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion.

Opinion

In our opinion, so far as appears from our examination, the Company maintained proper accounting recordsfor the year ended March 31, 2010 and the financial statements give a true and fair view of the Company’sstate of affairs as at March 31, 2010 and of its profit and cash flows for the year then ended in accordancewith Sri Lanka Accounting Standards.

Report on Other Legal and Regulatory Requirements

These financial statements also comply with the requirements of Section 151(2) of the Companies Act No.07 of 2007.However, it should be noted that the Company’s net assets are less than half of its statedcapital and the Board of Directors have resolved to address the situation as disclosed in note 27 to the

financial statements.

CHARTERED ACCOUNTANTS

Colombo

19th August 2010



Balance Sheet

AS AT 31ST MARCH 2010 31.03.2010 31.03.2009

Note Rs. Rs.

ASSETS

5

6

7

8

9.1

Total Non Current Assets

10

9.2

Total Current Assets

Total Assets 94,391,956 87,102,220

EQUITY 11

Total Equity

LIABILITIES

12

Total Non Current Liabilities

14

13

15

16

Total Current Liabilities

Total Liabilities

Total Equity & Liabilities 94,391,956 87,102,220



Income Statement

FOR THE YEAR ENDED 31ST MARCH 2010

Note 31.03.2010 31.03.2009

Rs. Rs.

Revenue 17

18

Loss from Operating Activities 19

20

21

Profit / (Loss) Before Taxation

22

Profit / (Loss) for the Year

Profit / (Loss) per share - Basic 23



Statement of Changes in Equity


Stated Retained Total

Capital Losses

Rs. Rs. Rs.

Balance as at 31st March 2010 187,516,633 (117,285,944) 70,230,689



Cash Flow Statement


31.03.2010 31.03.2009

Cash Flows From Operating Activities Rs. Rs.

Adjustments for

Cash Flows from/(used in) Investing Activities

Cash Flows from/(Used in) Financing Activities

(Note -A) 309,680 (4,550,198)

(Note -A) Cash & Cash Equivalents

309,680 (4,550,198)



Notes to the Financial Statements

1 REPORTING ENTITY

2 BASIS OF PREPARATION

2.1 Statement of Compliance

2.2 Approval of Financial Statements by Directors

2.3 Basis of Measurement

2.4 Use of Estimates and Judgements

3 SIGNIFICANT ACCOUNTING POLICIES

3.1 Property, Plant and Equipment

(i) Recognition and Measurement



Notes to the Financial Statements (Contd)

(ii) Subsequent Cost

(iii) Depreciation

(iv) Leased Assets

(v) Impairment of Assets

3.2 Intangible Assets

(i) Research and Development




(ii) License Fees

(iii) Subsequent Expenditure

(iv) Amortization

3.3 Investments

(i) Investments in treasury bonds

3.4 Trade and Other Receivables

3.5 Cash and Cash Equivalents

3.6 Employee Benefits

(i) Defined Contribution Plans Employeeʼs Provident Fund & Employees Trust Fund

(ii) Retirement Benefits Obligations – Gratuity




(iii) Liabilities and Provisions

3.7 Revenue Recognition

(i) Rendering of Services

(ii) Interest Income

3.8 Expenditure Recognition

(i) Borrowing Costs

(ii) Interest Costs

3.9 Income Tax Expense

(i) Current Taxes

(ii) Deferred Taxation




3.10 Cash Flow Statement

3.11 Commitments and Contingencies

3.12 Comparative Figures

3.13 Directors Responsibility Statement

3.14 Segment Reporting

4. NEW ACCOUNTING STANDARDS ISSUED BUT NOT EFFECTIVE AS AT BALANCE SHEET DATE





5 Property, Plant and Equipment

Computer Computer Furniture and Office Motor Total

Equipment Servers Fittings Equipment Vehicles

Cost Rs. Rs. Rs. Rs. Rs. Rs.

Accumulated Depreciation

Carrying Amount

As at 31st March 2010 51,805 4,315,996 275,157 296,033 - 4,938,990

6 Leasehold Asset Laptop Total

Cost Rs. Rs.

Accumulated Depreciation

Carrying Amount

As at 31st March 2010





7 Intangible Assets

License Fee Hospital Net 31.03.2010 31.03.2009

Cost Rs. Rs Rs. Rs.

Accumulated Amortization

Carrying Amount 8,680,986 9,817,997

31.03.2010 31.03.2009

Rs. Rs.

8 Employeesʼ Share Ownership Trust (ESOT Fund)

3,350,000 3,350,000





31.03.2010 31.03.2009

Rs. Rs.

9 Investments

9.1 Long Term Investment

5,743,822 9,085,187

9.2 Short Term Investment

58,075,737 45,700,000

10 Trade & Other Receivables

10,925,380 10,406,177

11 Stated Capital

12 Retirement Benefit Obligations

1,894,679 1,329,432





12 Retirement Benefit Obligations (Contd)

31.03.2010 31.03.2009

Rs. Rs.

13 Lease Creditors

- 189,126

14 Trade & Other Payables

19,255,058 9,136,565

15 Related Party Payables

31,174 -

16 Current Tax Payable

612,995 1,227,114

17 Revenue

50,524,306 38,484,507





31.03.2010 31.03.2009

Rs. Rs.

18 Other Operating Income

1,663,064 601,092

19 The loss from operations was arrived after charging the following.

20 Financial Income

9,478,818 12,347,867

21 Financial Cost

9,417,778 12,272,910

22 Income Tax Expenses

2,336,769 2,771,239





22 Income Tax Expenses (Contd)

31.03.2010 31.03.2009

Rs. Rs.

Reconciliation between the accounting loss and tax expenses

2,336,769 2,771,239

22.1Deferred Tax

44,845,075 44,807,201





23 Profit/(Loss) Per Share - Basic

31.03.2010 31.03.2009

Rs. Rs.

24 Transactions with Related Parties

24.1Transactions with Related Entities

Company Name of Director Relationship Nature of Transactions

24.2 Transactions with Key Management Personnel

31.03.2010 31.03.2009

Rs. Rs.

25 Commitments & Contingencies



Share Information

ANALYSIS OF SHAREHOLDERS ACCORDING TO THE NUMBER OF SHARES AS AT 31.03.2010

RESIDENT NON RESIDENT TOTAL

Shareholdings Number of No. of Shares Percentage (%) Number of No. of Shares Percentage (%) Number of No. of Shares Percentage (%)

Shareholders Shareholders Shareholders

Categories of Shareholders No. of Shareholders No. of Shares

LIST OF 20 MAJOR SHAREHOLDERS BASED ON THE SHAREHOLDINGS AS AT 31.03.2010

NAME SHAREHOLDINGS PERCENTAGE (%)



Notice of Annual General Meeting

AGENDA

Note:



Notes



Form of Proxy

Note :



Instructions to Completion of Form of Proxy

Note:

E-CHANNELLING PLC - Annual Report 2010

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