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Sail
to a
New
Dire
ctio
n
To
p
rovi
de
an
exce
llen
t
serv
ice
to o
ur
cust
om
ers
To
en
han
ce
shar
eho
lder
's
wea
lth
by
m
ean
s o
f st
able
and
att
ract
ive
retu
rns
To
dev
elo
p h
igh
ly s
atis
fied
and
mo
tiva
ted
em
plo
yees
at
all
leve
ls w
ho
wil
l m
ake
an
effec
tive
an
d
effici
ent
con
trib
uti
on
to
war
ds
the
eco
no
mic
d
evel
op
men
t o
f
Sri
Lan
ka
Ou
r m
issi
on
is
to
b
e an
exce
llen
t p
rovi
der
o
f
inn
ova
tive
fi
nan
cial
pro
du
cts
and
ser
vice
s ai
med
at
crea
tin
g an
d
enh
anci
ng
the
wea
lth
of
ou
r so
ciet
y.
Ou
r
Mis
sio
n
Ou
r
Co
rpo
rate
Ob
ject
ives
Cor
pora
te I
nfor
mat
ion
Fina
ncia
l Hig
hlig
hts
Cha
irm
an’s
Mes
sage
Dir
ecto
rs P
rofil
e
Cor
pora
te M
anag
emen
t Tea
m
Man
agem
ent D
iscu
ssio
n an
d A
naly
sis
Subs
idia
ries
, Ass
ocia
tes
and
Equ
ity
Acc
ount
s In
vest
ees
Ris
k M
anag
emen
t
Cor
pora
te G
over
nanc
e an
d C
ompl
ianc
e
Aud
it C
omm
itte
e R
epor
t
Fina
ncia
l Sta
tem
ents
An
nual
Rep
ort o
f the
Boa
rd o
f Dir
ecto
rs
on th
e A
ffai
rs o
f the
Com
pany
Dir
ecto
rs R
espo
nsib
ility
Sta
tem
ent
Inde
pend
ent A
udit
or’s
Rep
ort
Inco
me
Stat
emen
t
Bal
ance
She
et
Stat
emen
t of C
hang
es in
Equ
ity
Cas
h Fl
ow S
tate
men
t
Not
es to
the
Fina
ncia
l Sta
tem
ents
Segm
enta
l Rep
orti
ng -
Gro
up
Dec
ade
at a
Gla
nce
- C
ompa
ny
Five
Yea
r Su
mm
ary
- G
roup
Val
ue A
dded
Sta
tem
ent -
Com
pany
Shar
ehol
ders
and
Inv
esto
rs I
nfor
mat
ion
Not
ice
of M
eeti
ng -
Vot
ing
Not
ice
of M
eeti
ng -
Non
Vot
ing
Form
of P
roxy
- V
otin
g
Form
of P
roxy
- N
on V
otin
g
04 05 09 11 14 15 16 17 18 21 22 23 26 27 29 30 31 32 33 55 56 57 58 59 62 63 64 66
3
CO
RP
OR
AT
E I
NF
OR
MA
TIO
N
Stat
uto
ry S
tatu
s
A P
ub
lic
Lim
ited
Lia
bil
ity
Co
mp
any
inco
rpo
rate
d i
n
Sri
Lan
ka
on
3/9
/199
2 u
nd
er t
he
Co
mp
anie
s A
ct N
o.
17 o
f 19
82 a
nd
su
bse
qu
entl
y re
-reg
iste
red
un
der
th
e
Co
mp
anie
s A
ct N
o. 0
7 o
f 20
07.
The
Co
mp
any
was
qu
ote
d o
n t
he
Co
lom
bo
Sto
ck E
xch
ange
in
199
3.
Reg
iste
red
as
a F
inan
ce L
easi
ng
Est
abli
shm
ent
un
der
the
pro
visi
ons
of t
he
Fin
ance
Lea
sin
g A
ct N
o. 5
6 of
2000
Co
mp
any
Re-
regi
stra
tio
n N
o. P
Q 9
1
Pla
ce o
f In
corp
ora
tio
n –
Co
lom
bo
Reg
iste
red
Offi
ce
No.
110
, D. S
. Sen
anay
ake
Maw
ath
a,
Co
lom
bo
08
Bo
ard
of
Dir
ecto
rs
Mr.
T. S
om
esw
aran
FC
A. F
CM
A.
(In
dep
end
ent
No
n-E
xecu
tive
Ch
airm
an)
Mr.
U. G
auta
m
(No
n-E
xecu
tive
Dep
uty
Ch
airm
an)
Mr.
M. S
. I. P
eiri
s A
ICM
(SL
)
(Exe
cuti
ve D
irec
tor)
Mr.
R. S
. W. S
enan
ayak
e A
CM
A (
UK
), F
SCM
A (
SL)
(No
n-E
xecu
tive
Dir
ecto
r)
Mr.
G. C
. B. R
anas
ing
he
Cer
tifi
cate
in L
easi
ng
(USA
)
(In
dep
end
ent
No
n-E
xecu
tive
Dir
ecto
r)
Mr.
J. C
. Ko
rale
BSc
. MSc
. FC
A. F
CM
A.
(No
n-E
xecu
tive
Dir
ecto
r)
Dr.
T. S
enth
ilve
rl
(No
n-E
xecu
tive
Dir
ecto
r)
Sec
reta
ries
S S
P C
orp
ora
te S
ervi
ces
(Pvt
) L
td.,
546,
Gal
le R
oad
, Co
lom
bo
03.
Au
dit
ors
M/s
. KP
MG
(Ch
arte
red
Acc
ou
nta
nts
)
Law
yers
M/s
. De
Liv
era
Ass
oci
ates
Att
orn
eys-
at-L
aw &
No
tari
es P
ub
lic
Co
lom
bo.
Gu
naw
ard
ena
& R
anas
ingh
e A
sso
ciat
es
Att
orn
eys-
at-L
aw &
No
tari
es P
ub
lic
No.
105
6, M
arad
ana
Ro
ad
Co
lom
bo
08.
Ak
law
Ass
oci
ates
Att
orn
eys-
at-L
aw &
No
tari
es P
ub
lic
Co
lom
bo.
Ban
ker
s
Seyl
an B
ank
PL
C
Sam
pat
h B
ank
PL
C
Peo
ple
’s B
ank
Co
mm
erci
al B
ank
PlC
Hea
d O
ffice
No.
110
, D. S
. Sen
anay
ake
Maw
ath
a,
Co
lom
bo
08
Tel
eph
on
e
+94
-11-
5222
888
Fax
+
94-1
1-52
2288
0
Em
ail
sm
bh
ed@
sltn
et.lk
Web
w
ww
.sm
blk
.co
m
Su
bsi
dia
ry C
om
pan
y
SMB
Mo
ney
Bro
kers
(P
vt)
Ltd
Ass
oci
ate
Co
mp
anie
s
SMB
Sec
uri
ties
(P
vt)
Ltd
.
SMB
Rea
l Est
ate
Ltd
.
Ken
anga
In
vest
men
t C
orp
ora
tio
n L
td.
Bra
nch
es
Den
iyay
a B
ran
ch
Cen
tral
Tyr
e H
ou
se B
uil
din
g, 1
st F
loo
r,
Mai
n S
tree
t, D
eniy
aya.
Mah
iyan
gan
aya
Bra
nch
24, K
and
y R
oad
, Mah
iyan
gan
aya.
4
2011
Ch
ange
%20
10
Per
form
ance
Du
rin
g th
e Y
ear
Inco
me
Pro
fit/
(Lo
ss)
bef
ore
Tax
& V
AT
Tax
atio
n &
VA
T
Pro
fit/
(Lo
ss)
after
Tax
At
the
Yea
r E
nd
Lea
se /
Lo
ans
po
rtfo
lio
Oth
er A
sset
s
To
tal
Ass
ets
Shar
eho
lder
s' F
un
ds
Min
ori
ty I
nte
rest
Dep
osi
ts &
Bo
rro
win
gs
Deb
entu
res
& O
ther
Lia
bil
itie
s
To
tal
Lia
bil
itie
s an
dS
har
eho
lder
s F
un
ds
Rat
ios
Bas
ic E
arn
ings
/ (
Los
s) p
er S
har
e (R
s.)
Inte
rest
Co
ver
Net
Ass
ets
per
Sh
are
Co
st /
In
com
e R
atio
Net
Pro
fit/
(Lo
ss)
to I
nco
me
Rat
io
GR
OU
PC
OM
PAN
Y
FIN
AN
CIA
L H
IGH
LIG
HT
S
130,
503,
586
-7.4
4%14
1,00
0,43
810
7,93
7,67
7-1
3.03
%12
4,10
9,94
0
(28,
289,
373)
-184
.87%
33,3
31,2
40(3
5,51
8,11
1)-2
82.6
8%19
,442
,896
(7,5
66,1
44)
25.7
6%(6
,016
,263
)(7
,084
,828
)32
.49%
(5,3
47,3
96)
(35
,85
5,5
17
)-2
31
.26
%2
7,3
14
,97
7(4
2,6
02
,93
9)
-40
2.2
4%
14
,09
5,5
00
643,
395,
924
23.7
2%52
0,02
2,03
164
6,45
5,92
434
.22%
481,
637,
492
750,
778,
183
21.6
0%61
7,39
4,26
770
7,81
6,01
213
.22%
625,
193,
169
1,3
94
,17
4,1
07
22
.57
%1
,13
7,4
16
,29
81
,35
4,2
71
,93
62
2.3
6%
1,1
06
,83
0,6
61
880,
913,
440
62.6
3%54
1,65
8,47
185
2,31
8,08
963
.78%
520,
388,
860
7,65
7,70
5-7
.02%
8,23
6,02
3-
-- -
248,
081,
994
-29.
65%
352,
664,
519
248,
081,
994
-29.
68%
352,
814,
519
257,
520,
968
9.64
%23
4,85
7,28
525
3,87
1,85
38.
67%
233,
627,
282
1,3
94
,17
4,1
07
22
.57
%1
,13
7,4
16
,29
81
,35
4,2
71
,93
62
2.3
6%
1,1
06
,83
0,6
61
-0.0
2-2
02.9
9%0.
03-0
.03
-253
.64%
0.02
0.41
-73.
21%
1.51
0.25
-80.
67%
1.3
0.61
46.0
0%0.
420.
6253
.98%
0.4
70.2
2%27
.12%
55.2
4%65
.79%
3.37
%63
.64%
-27.
47%
-241
.81%
19.3
8%-3
9.47
%-3
84.7
8%13
.86%
2011
Ch
ange
%20
10R
s.R
s.R
s.R
s.
5
FIN
AN
CIA
L H
IGH
LIG
HT
S
Inte
rest
In
com
e -
Gro
up
R
upe
es in
Mil
lion
s
Loan
and
Adv
ance
s
Leas
e In
tere
st I
ncom
e
Oth
er I
nter
est I
ncom
e
2011
2010
47,6
07
41,8
74
12,7
48
30,5
23
34,4
44
6,48
0
6
2011
2010
To
tal A
sset
s R
upe
es in
Mil
lion
s
375,
061
6,23
9
355,
901
164,
121
153,
543
37,3
20
10,8
2034,4
12
488,
779
9,77
6
274,
295
369,
341
158,
425
40,1
73
14,3
4839,2
77
Cas
h an
dSh
ort T
erm
Fun
ds
Inve
stm
ents
Loan
s an
d A
dvan
ces
Leas
e R
enta
l Rec
eiva
bles
Inve
stm
ent i
nA
ssoc
iate
s C
ompa
nies
Inve
stm
ent P
rope
rtie
s
Pro
pert
y P
lant
and
Equ
imen
t
Oth
er a
sset
s
Gro
up
Ass
ets,
Sh
areh
old
er's
fu
nd
s an
d N
et A
sset
s p
er s
har
eR
upe
es in
Mil
lion
s
FIN
AN
CIA
L H
IGH
LIG
HT
S
4,81
4,19
8
4,22
4,55
7
1,18
6,97
6
1,13
7,41
6
1,36
2,35
0
535,
821
(152
,280
)
(62,
281)
541,
65885
0,16
4
2007
2008
2009
2010
2011
Net
Ass
ets
per
shar
e (R
s.)
Shar
eho
lder
s Fun
d
Ass
ets
0.61
0.39
-1.1
4
-2.7
9
9.83
7
Inte
rest
Exp
ense
s -
Gro
up
Ru
pees
in M
illi
ons
Bor
row
ings
and
Refi
nanc
e
Deb
entu
res
56,0
08
8,72
5
31,3
53
16,2
5620
11
2010
8
CH
AIR
MA
N’S
ME
SS
AG
E
9
I am
ple
ased
an
d d
elig
hte
d t
o w
elco
me
you
to
th
e N
inet
een
th A
nn
ual
Gen
eral
Mee
tin
g o
f SM
B
Lea
sin
g P
LC
an
d I
’am
pri
vile
ged
to
pre
sen
t th
e A
nn
ual
Rep
ort
to
geth
er w
ith
a r
evie
w o
f th
e
Co
mp
any’
s ac
tivi
ties
fo
r th
e ye
ar 2
011.
The
Lo
cal E
con
om
y
In 2
011,
th
e Sr
i L
ank
an e
con
om
y re
cord
ed a
gro
wth
of
8.3
per
cen
t, t
he
hig
hes
t in
Sri
Lan
ka’s
po
st
ind
epen
den
ce h
isto
ry,
sust
ain
ing
a gr
ow
th m
om
entu
m o
f o
ver
8 p
erce
nt
for
the
firs
t ti
me
in t
wo
con
secu
tive
yea
rs.
Un
der
pin
nin
g th
is g
row
th,
was
in
crea
sed
co
nsu
mer
an
d i
nve
sto
r co
nfi
den
ce
aris
ing
fro
m
the
pea
ce
div
iden
d,
favo
ura
ble
m
acro
eco
no
mic
co
nd
itio
ns,
in
crea
sed
ca
pac
ity
uti
liza
tio
n,
exp
ansi
on
of
infr
astr
uct
ure
fac
ilit
ies
and
ren
ewed
eco
no
mic
act
ivit
ies
in t
he
No
rth
an
d
Eas
t. F
or
the
thir
d c
on
secu
tive
yea
r in
flat
ion
rem
ain
ed a
t a
sin
gle
dig
it le
vel s
up
po
rted
by
imp
rove
d
do
mes
tic
sup
ply
co
nd
itio
ns,
pru
den
t li
qu
idit
y m
anag
emen
t an
d b
enig
n i
nfl
atio
n e
xpec
tati
on
s.
Refl
ecti
ng
the
imp
rove
men
t in
th
e fi
scal
sec
tor,
th
e d
ebt
to G
DP
rat
io d
ecli
ned
to
78.
5 p
erce
nt
in
2011
fro
m 8
1.9
per
cen
t in
201
0.
Acc
ord
ing
to t
he
Cen
tral
Ban
k o
f Sr
i L
ank
a, t
he
per
form
ance
of
fin
anci
al i
nst
itu
tio
ns
imp
rove
d
sign
ifica
ntl
y, w
hil
e p
rud
enti
al in
dic
ato
rs w
ere
mai
nta
ined
wit
h a
deq
uat
e ca
pit
al a
nd
liq
uid
ity
bu
ffer
s
and
hea
lth
y p
rofi
t le
vels
. A s
erie
s o
f new
an
d r
evis
ed d
irec
tio
ns
wer
e is
sued
to t
he
no
n-b
ank
fin
anci
al
sect
or
in li
ne
wit
h t
he
new
Fin
ance
Bu
sin
ess
Act
.
Glo
bal
Eco
no
my
Acc
ord
ing
to t
he
Wo
rld
Ban
k,
the
fin
anci
al c
risi
s fo
r m
ost
dev
elo
pin
g co
un
trie
s is
ove
r. Th
ey s
tate
that
eff
ort
s m
ust
no
w b
e fo
cuse
d o
n t
ack
lin
g co
un
try
spec
ific
chal
len
ges
such
as
ach
ievi
ng
bal
ance
d
gro
wth
th
rou
gh s
tru
ctu
ral
refo
rms,
co
pin
g w
ith
in
flat
ion
ary
pre
ssu
res,
an
d d
eali
ng
wit
h h
igh
com
mo
dit
y p
rice
s. Th
e gl
ob
al fi
nan
cial
cri
sis
is n
o l
on
ger
the
maj
or
forc
e d
icta
tin
g th
e p
ace
of
eco
no
mic
act
ivit
y in
dev
elo
pin
g co
un
trie
s. M
ost
dev
elo
pin
g co
un
trie
s h
ave,
or
are
clo
se t
o h
avin
g,
rega
ined
fu
ll c
apac
ity
acti
vity
leve
ls. A
s a
resu
lt, c
ou
ntr
y sp
ecifi
c p
rod
uct
ivit
y an
d s
ecto
ral f
acto
rs a
re
no
w t
he
do
min
ant
fact
ors
su
pp
ort
ing
gro
wth
. G
lob
al G
DP
is
exp
ecte
d t
o g
row
3.2
per
cen
t in
201
1
bef
ore
ed
gin
g u
p t
o 3
.6 p
erce
nt
in 2
012.
Alt
ho
ugh
so
lid
gro
wth
led
by
dev
elo
pin
g co
un
trie
s is
th
e
mo
st l
ikel
y o
utc
om
e go
ing
forw
ard
, h
igh
fo
od
pri
ces,
po
ssib
le a
dd
itio
nal
oil
pri
ce h
ikes
, an
d
lin
geri
ng
po
st c
risi
s d
ifficu
ltie
s in
hig
h i
nco
me
cou
ntr
ies
po
se d
ow
nsi
de
risk
s.
In t
his
glo
bal
sce
nar
io w
e h
ave
to g
uar
d a
gain
st a
nd
be
pre
par
ed fo
r, d
esp
ite
the
po
siti
ve a
nd
pru
den
t
eco
no
mic
po
lici
es o
f co
un
trie
s w
ho
hav
e al
read
y in
vest
ed in
Sri
Lan
ka
and
wh
ich
can
hav
e si
gnifi
can
t
ben
efits
to
ou
r ec
on
om
y.
A N
ew D
irec
tio
n
To
day
SM
B L
easi
ng
PL
C h
as b
eco
me
a n
ew,
ind
epen
den
t an
d s
tan
d a
lon
e en
tity
. In
ord
er t
o
stre
ngt
hen
th
e co
mp
any’
s le
asin
g b
usi
nes
s it
was
bu
ilt a
rou
nd
Lan
ka
Ash
ok
Ley
lan
d P
LC
wh
ich
is t
he
mar
ket
lead
er i
n c
om
mer
cial
veh
icle
s in
Sri
Lan
ka.
Ou
r co
mp
any
is a
sm
all
to m
ediu
m s
cale
op
erat
ion
an
d w
e h
ave
to fo
rge
ahea
d n
otw
ith
stan
din
g o
ur
lim
itat
ion
s si
nce
we
hav
e h
ad m
any
hig
hs
and
low
s in
th
e p
ast.
We
hav
e se
vere
d o
ur
cord
s fr
om
th
e ea
rlie
r m
oth
er s
hip
an
d a
re n
ow
ch
arti
ng
a
new
co
urs
e th
at w
ill e
nsu
re a
fai
r an
d c
on
sist
ent
retu
rn t
o o
ur
stak
eho
lder
s.
Dea
r S
hare
hold
er
CH
AIR
MA
N’S
ME
SS
AG
EC
onti
nu
ed
10
Co
mp
any
Per
form
ance
As
we
step
in
to a
new
era
, an
era
of
new
op
po
rtu
nit
ies
we
are
ple
ased
to
sta
te t
hat
fin
anci
ally
th
e
com
pan
y co
nti
nu
ed t
o p
rogr
ess
stea
dil
y al
tho
ugh
we
had
no
t m
ade
pro
fits
du
rin
g th
e ye
ar u
nd
er
revi
ew. T
ow
ard
s th
e fi
rst
qu
arte
r o
f 20
12 t
he
situ
atio
n i
mp
rove
d a
nd
we
com
men
ced
mak
ing
pro
fits
wh
ich
was
a r
eflec
tio
n o
n t
he
new
gu
idan
ce g
iven
to
th
e co
mp
any
by t
he
new
ly i
nst
itu
ted
Bo
ard
of
Dir
ecto
rs.
If t
he
com
pan
y co
nti
nu
es i
n t
his
pat
h,
con
dit
ion
s ar
e b
ou
nd
to
im
pro
ve l
ead
ing
into
a
situ
atio
n t
hat
th
e co
mp
any
wo
uld
bec
om
e a
con
sid
erab
le a
sset
in
th
is fi
eld
.
Fu
ture
Str
ateg
y
The
way
fo
rwar
d o
f th
e co
mp
any
is f
or
SMB
Lea
sin
g P
LC
to
evo
lve
ou
r se
rvic
es i
nto
an
d s
pec
iali
ze
in f
acto
rin
g. B
y th
e en
d o
f th
e ye
ar t
he
com
pan
y lo
ok
s fo
rwar
d t
o b
eco
me
a p
laye
r in
th
e fi
eld
of
deb
t
fact
ori
ng.
Wit
h t
he
man
y co
mp
anie
s d
esir
ou
s o
f im
pro
vin
g th
eir
cash
flo
w s
tatu
s, f
acto
rin
g ca
n
bec
om
e lu
crat
ive
lin
e in
ou
r co
mp
any
po
rtfo
lio.
An
oth
er a
spec
t th
e co
mp
any
wo
uld
be
seri
ou
sly
loo
kin
g in
to is
mic
ro fi
nan
ce. Th
e n
um
ber
of
peo
ple
wh
o n
eed
to
sec
ure
leas
ing
for
Mo
tor
cycl
es a
nd
the
ub
iqu
ito
us
Thre
e W
hee
lers
is
stea
dil
y in
crea
sin
g an
d t
he
com
pan
y n
eed
s to
cap
ital
ize
on
th
is
ente
rpri
sin
g se
cto
r. W
ith
th
e as
sist
ance
fro
m o
ur
join
t ve
ntu
re p
artn
er L
ank
a A
sho
k L
eyla
nd
, we
wil
l
also
del
ve i
nto
oth
er p
roje
cts
such
as
pro
vid
ing
leas
ing
faci
liti
es o
n c
on
cess
ion
ary
rate
s to
th
e p
ub
lic
to p
urc
has
e sc
ho
ol
bu
ses
in o
rder
to
ser
vice
th
e gr
ow
ing
po
pu
lati
on
of
sch
oo
lch
ild
ren
fro
m t
he
sub
urb
s w
ho
req
uir
e tr
ansp
ort
.
Ap
pre
ciat
ion
s In v
iew
of
the
con
dit
ion
s th
at p
reva
iled
du
rin
g th
e ye
ar u
nd
er r
evie
w, w
e h
ave
reas
on
s to
be
sati
sfied
wit
h t
he
per
form
ance
of
the
com
pan
y in
th
is t
ran
siti
on
tim
es a
nd
I w
ou
ld li
ke t
o t
ake
this
op
po
rtu
-
nit
y to
exp
ress
my
app
reci
atio
n a
nd
gra
titu
de
to t
he
Man
agem
ent
and
Sta
ff w
ho
se c
om
mit
men
t an
d
per
seve
ran
ce w
as a
gre
at s
ou
rce
of
stre
ngt
h.
I ta
ke t
his
op
po
rtu
nit
y to
off
er m
y th
ank
s to
th
e sh
areh
old
ers
and
lo
ok
fo
rwar
d t
o t
hei
r co
nti
nu
ed
sup
po
rt w
hic
h w
ill
enab
le t
he
Co
mp
any
to a
ttai
n g
row
th w
ith
eq
uit
y to
all
ou
r st
akeh
old
ers
in t
he
futu
re.
On
beh
alf o
f th
e B
oar
d o
f Dir
ecto
rs I
wo
uld
like
to e
xpre
ss m
y d
eep
ap
pre
ciat
ion
to t
he
offi
cial
s o
f th
e
Cen
tral
Ban
k o
f Sr
i Lan
ka
for
thei
r co
nti
nu
ed s
up
po
rt a
nd
to
ou
r cu
sto
mer
s fo
r th
eir
con
tin
ued
tru
st
in o
ur
com
pan
y.
T. S
om
esw
aran
Ch
airm
an
30th
May
201
2
Co
lom
bo
DIR
EC
TO
RS
PR
OF
ILE
S
Mr.
T S
om
esw
aran
- F
CA
, FC
MA
Age
: 69
year
s | I
nd
epen
den
t N
on
-Exe
cuti
ve C
hai
rman
Mr
T S
om
esw
aran
is a
Ch
arte
red
Acc
ou
nta
nt,
in p
ract
ice
for
mo
re t
han
35
year
s an
d r
etir
ed f
rom
th
e P
ost
of
Sen
ior
Par
tner
of
SJM
S A
sso
ciat
es, a
Fir
m o
f A
cco
un
tan
ts w
hic
h i
s as
soci
ated
wit
h D
elo
itte
's i
n S
ri L
ank
a.
He
serv
es o
n t
he
Au
dit
co
mm
itte
e o
f th
e In
stit
ute
of
Ch
arte
red
Acc
ou
nta
nts
of
Sri L
ank
a an
d S
eren
dib
Lan
d P
LC
. H
e
also
ser
ves
on
th
e B
oar
d o
f C
om
mer
cial
Cre
dit
, A
ban
s F
inan
cial
Ser
vice
s, C
lean
Co
Lan
ka
Ltd
., P
an A
sia
Po
wer
,
EC
SAT
Gal
le (
Eq
ual
ity-
bas
ed C
om
mu
nit
y Su
pp
ort
& T
rain
ing)
, In
do
nes
ian
Bu
sin
ess
Co
un
cil o
f th
e C
eylo
n C
ham
ber
of
Co
mm
erce
, Cey
lon
Ch
amb
er o
f C
om
mer
ce, I
nst
. fo
r D
evel
op
men
t o
f C
om
mer
cial
Law
& P
ract
ice
and
is
the
Vic
e
Pre
sid
ent
of
the
Inte
rnat
ion
al C
ham
ber
of
Co
mm
erce
of
Sri
Lan
ka.
He
is a
mem
ber
of
the
Sri
Lan
ka
Inst
. o
f D
irec
tors
, O
rgan
izat
ion
fo
r P
rofe
ssio
nal
Ass
oci
atio
ns
(OPA
), I
nte
rnat
ion
al
Fis
cal
Ass
oci
atio
n (
IFA
),
Mem
ber
of
the
Tax
Fac
ult
y, E
uro
pea
n C
ham
ber
of
Co
mm
erce
an
d S
ecre
tary
of
Ash
ok
a
Inn
ova
tors
fo
r th
e P
ub
lic.
He
ho
lds
nu
mer
ou
s m
emb
ersh
ips
and
ho
no
rary
po
siti
on
s to
hel
p s
tren
gth
en t
he
cap
acit
y o
f ch
arit
able
an
d n
on
-pro
fit
org
aniz
atio
ns
as w
ell a
s p
hil
anth
rop
ic p
roje
cts
and
act
ivit
ies.
Mr
Som
esw
aran
has
su
bst
anti
al e
xper
ien
ce i
n a
ud
itin
g, o
rgan
izat
ion
al d
evel
op
men
t, l
ead
ersh
ip &
par
tner
ship
bu
ild
ing
and
is
p
assi
on
ate
abo
ut
net
wo
rkin
g &
li
nk
ing
org
aniz
atio
ns
to
faci
lita
te
po
siti
ve
soci
al
chan
ge
and
dev
elo
pm
ent,
wit
h s
pec
ific
focu
s o
n g
ove
rnan
ce, a
cco
un
tin
g et
hic
s an
d r
eso
urc
e m
ob
iliz
atio
n,
He
is a
lso
a F
ello
w m
emb
er o
f C
MA
an
d a
mem
ber
of
its
Go
vern
ing
Co
un
cil.
Ap
t. N
o.3/
1 'S
t. M
ich
aels
', N
o.4,
Alf
red
Ho
use
Gar
den
s, C
olo
mb
o 3
.
Mr.
U. G
auta
m
Age
: 57
year
s | N
on
-Exe
cuti
ve D
epu
ty C
hai
rman
Mr.
U
Gau
tam
is
atta
ched
to
Ash
ok
Ley
lan
d I
nd
ia a
s it
s H
ead
of
the
SAA
RC
Reg
ion
rep
rese
nti
ng
Ash
ok
Ley
lan
d
Ind
ia i
n t
he
join
t ve
ntu
re L
ank
a A
sho
k L
eyla
nd
PL
C a
s it
s C
EO
.
Mr.
Gau
tam
in
itia
lly
was
on
dep
uta
tio
n i
n 1
996
and
dev
elo
ped
a v
ery
stro
ng
mar
ket
for
Ash
ok
Ley
lan
d i
n S
ri L
ank
a
wh
ich
pre
sen
tly
enjo
ys m
arke
t le
ader
ship
po
siti
on
.
By
pro
fess
ion
he
is a
n E
ngi
nee
r an
d s
erve
s A
sho
k L
eyla
nd
sin
ce 1
978
and
had
hel
d n
um
ber
of
imp
ort
ant
assi
gnm
ents
in t
he
do
mes
tic
mar
ket
in I
nd
ia p
rio
r to
tak
ing
up
ass
ign
men
t in
its
Exp
ort
Dep
artm
ent
in 1
986.
51, S
cho
ol L
ane,
Co
lom
bo
03
11
DIR
EC
TO
RS
PR
OF
ILE
S
Mr.
M. S
. I. P
eiri
s A
ICM
(SL
)
Age
: 43
year
s | E
xecu
tive
Dir
ecto
r
Mr.
M S
I P
eiri
s is
an
Ass
oci
ate
mem
ber
of
the
Inst
itu
te o
f C
red
it M
anag
emen
t o
f Sr
i L
ank
a. H
e jo
ined
Sey
lan
Mer
chan
t B
ank
PL
C i
n 1
994
and
pre
sen
tly
fun
ctio
ns
as t
he
Exe
cuti
ve D
irec
tor
of
SMB
Lea
sin
g P
LC
. M
r. P
eiri
s h
as
exte
nsi
ve e
xper
ien
ce i
n t
he
fiel
d o
f cr
edit
esp
ecia
lly
in le
asin
g, c
ou
nti
ng
ove
r 25
yea
rs i
n t
he
ind
ust
ry.
73, “
Sun
ny
Dal
e” K
atu
kuru
nd
a, M
ora
tuw
a.
Mr.
R. S
. W. S
enan
ayak
e A
CM
A (
UK
), F
SCM
A (
SL)
Age
46
year
s | N
on
-Exe
cuti
ve D
irec
tor
Mr.
R.S
.W. S
enan
ayak
e is
an
Ass
oci
ate
mem
ber
of
the
Ch
arte
red
In
stit
ute
of
Man
agem
ent
Acc
ou
nta
nts
of
the
Un
ited
Kin
gdo
m a
nd
Fel
low
mem
ber
of
the
CIM
A o
f Sr
i Lan
ka.
He
pre
sen
tly
fun
ctio
ns
as t
he
Ch
airm
an/M
anag
ing
Dir
ecto
r
of S
MB
Mo
ney
Bro
kers
(P
vt)
Ltd
, SM
B S
ecu
riti
es (
Pvt
) L
td, S
MB
Rea
l Est
ate
Lim
ited
, Ch
airm
an o
f Co
rpo
rate
Fin
ance
& C
apit
al M
arke
t L
imit
ed a
nd
th
e M
anag
ing
Dir
ecto
r o
f K
enan
ga I
nve
stm
ent
Co
rpo
rati
on
Lim
ited
. Mr.
Sen
anay
ake
gain
ed e
xper
ien
ce i
n a
cco
un
tin
g an
d a
ud
itin
g th
rou
gh a
sti
nt
wit
h M
/S P
rice
wat
erh
ou
seco
op
ers.
He
has
bee
n i
nvo
lved
in
th
e Se
curi
ties
In
du
stry
fo
r m
any
year
s. H
e w
ork
ed a
t So
mer
vile
Sto
ck B
roke
rs (
Pvt
) L
td,
a
ten
ure
du
rin
g w
hic
h h
e ga
ined
co
mp
reh
ensi
ve e
xpo
sure
to t
he
sto
ck b
rok
ing
bu
sin
ess.
Mr.
Sen
anay
ake
has
sp
ecia
lize
d
in t
he
pro
fess
ion
of
inve
stm
ent
man
agem
ent,
an
d w
as a
sso
ciat
ed w
ith
Cen
tral
Fin
ance
Co
mp
any
PL
C a
s it
s
Inve
stm
ent
Man
ager
, man
agin
g th
e eq
uit
y p
ort
foli
os
of
Cen
tral
Fin
ance
Co
mp
any
PL
C ,
Cen
tral
Sec
uri
ties
PL
C, a
nd
som
e o
ther
su
bsi
dia
ries
of
Cen
tral
Fin
ance
Co
mp
any
PL
C.
He
was
at
Cey
lin
co I
nsu
ran
ce C
om
pan
y P
LC
as
Dep
uty
Gen
eral
Man
ager
-In
vest
men
ts,
assu
min
g re
spo
nsi
bil
ity
for
man
agem
ent
of
the
Lif
e, G
ener
al P
ensi
on
Fu
nd
s o
f th
e
Co
mp
any.
He
was
a D
irec
tor
of
the
Lea
sin
g A
sso
ciat
ion
of
Sri
Lan
ka
fro
m 2
005
to 2
008
and
als
o a
s a
Dir
ecto
r at
Rai
nw
ear
(Pvt
)
Lim
ited
fro
m 1
988
to 1
990.
18/2
44 A
, Eve
rgre
en P
ark
, Off
Mu
han
dir
am E
. D. D
abar
e M
awat
ha,
Co
lom
bo
05.
Mr.
G. C
. B. R
anas
ing
he
Age
: 66
year
s | I
nd
epen
den
t N
on
-Exe
cuti
ve D
irec
tor
Mr.
G C
B R
anas
ing
he
cou
nts
mo
re t
han
25
year
s o
f ex
per
ien
ce i
n t
he
leas
ing
ind
ust
ry. H
e w
as a
fo
un
der
Dir
ecto
r /
CE
O o
f O
rien
t F
inan
cial
Ser
vice
s C
orp
ora
tio
n P
vt. L
td. f
rom
wh
ich
he
reti
red
in O
cto
ber
200
9. H
e h
as a
lso
ser
ved
at
Mer
can
tile
Lea
sin
g L
td. f
or
ove
r 20
yea
rs i
n d
iffer
ent
cap
acit
ies
and
als
o s
erve
d a
s a
Dir
ecto
r o
f th
e sa
id c
om
pan
y.
Mr.
Ran
asin
ghe
join
ed t
he
leas
ing
ind
ust
ry i
n it
s fo
rmat
ive
year
s an
d h
as p
laye
d a
maj
or
role
in
dev
elo
pin
g le
asin
g as
an i
mp
ort
ant
fin
anci
al i
nst
rum
ent
in t
he
loca
l mar
ket.
Mr.
Ran
sin
ghe
was
aw
ard
ed a
Cer
tifi
cate
of
Lea
sin
g by
th
e Su
mm
er S
cho
ol o
f L
easi
ng,
Sal
t L
ake
Cit
y, U
tah
, USA
.
111/
G/1
0, K
ahan
tho
ta R
oad
, Mal
abe
Con
tin
ued
12
DIR
EC
TO
RS
PR
OF
ILE
S
Mr.
J. C
. Ko
rale
Age
: 53
year
s | N
on
-Exe
cuti
ve D
irec
tor.
Mr.
J C
Ko
rale
join
ed t
he
Bo
ard
of
SMB
Lea
sin
g P
LC
in N
ove
mb
er 2
010
and
ho
lds
a B
ach
elo
r o
f Sc
ien
ce D
egre
e fr
om
the
Un
iver
sity
of
Kel
aniy
a an
d a
Mas
ter
of
Scie
nce
Deg
ree
fro
m t
he
Un
iver
sity
of
Mo
ratu
wa.
Mr.
Ko
rale
is
a F
ello
w M
emb
er o
f th
e In
stit
ute
of
Ch
arte
red
Acc
ou
nta
nts
of
Sri
Lan
ka
and
a f
ello
w m
emb
er o
f th
e
Ch
arte
red
In
stit
ute
of
Man
agem
ent
Acc
ou
nta
nts
– U
K. H
e is
als
o a
n A
sso
ciat
e M
emb
er o
f th
e C
har
tere
d I
nst
itu
te o
f
Arb
itra
tors
of
UK
.
He
also
hel
d t
he
po
siti
on
of
Vic
e C
hai
rman
of
the
Nat
ion
al C
on
trac
tors
Ass
oci
atio
n o
f Sr
i L
ank
a an
d w
as a
fo
un
der
Dir
ecto
r o
f th
e A
dva
nce
Co
nst
ruct
ion
Tra
inin
g A
cad
emy.
Mr.
Ko
rale
has
ext
ensi
ve e
xpo
sure
to
Fin
ance
, A
ud
it a
nd
oth
er i
nd
ust
ries
an
d a
cts
as a
n I
nd
epen
den
t M
anag
emen
t
Co
nsu
ltan
t an
d a
pra
ctic
ing
Arb
itra
tor.
15A
, Arc
adia
Gar
den
s, R
osm
ead
Pla
ce, C
olo
mb
o 0
7
Dr.
T S
enth
ilve
rl
Age
: 67
year
s | N
on
-Exe
cuti
ve D
irec
tor.
Dr.
T S
enth
ilve
rl s
erve
s o
n t
he
Bo
ard
s o
f A
man
a T
akaf
ul I
nsu
ran
ce P
LC
, C T
Lan
d D
evel
op
men
t P
LC
, C W
Mac
kie
PL
C,
Lan
ka
Cer
amic
s P
LC
, M
BSL
Sav
ings
Ban
k P
LC
, V
idu
llan
ka
PL
C a
nd
sev
eral
su
bsi
dia
ries
an
d a
sso
ciat
e
com
pan
ies.
He
cou
nts
ove
r fo
ur
dec
ades
of a
ctiv
e en
gage
men
ts in
Man
ufa
ctu
rin
g, T
rad
ing,
Lan
d D
evel
op
men
t, P
ow
er
& E
ner
gy S
ecto
rs, I
nd
ust
rial
Tu
rnke
y P
roje
ctio
n, C
on
stru
ctio
n a
nd
Man
agem
ent.
No.
28
D, V
isak
a R
oad
, Co
lom
bo
04
13
CO
RP
OR
AT
E M
AN
AG
EM
EN
T T
EA
M
Mr.
M S
I P
eiri
s A
ICM
(SL
)
-
E
xecu
tive
Dir
ecto
r
Mr.
M J
N S
Fer
nan
do
-
C
hie
f E
xecu
tive
Offi
cer
Mr.
P V
Ran
asin
gh
e D
ip in
Fin
Mgt
-
Gen
eral
Man
ager
- C
red
it &
Co
llec
tio
n
Mr.
P W
K R
osh
an B
. Com
(Sp
), A
CA
-
Hea
d o
f F
inan
ce
Mr.
M W
elag
edar
a A
ttor
ney
-at-
Law
, Not
ary
Pu
blic
an
d R
egis
tere
d C
ompa
ny
Secr
etar
y
-
H
ead
of
Leg
al &
Hu
man
Res
ou
rces
Mr.
R M
Wee
rack
oo
n M
sc. I
T &
M
-
H
ead
of
Info
rmat
ion
Tec
hn
olo
gy
14
MA
NA
GE
ME
NT
DIS
CU
SSI
ON
AN
D A
NA
LYSI
S
Bu
sin
ess
Act
ivit
ies
The
Co
mp
any
is
curr
entl
y o
per
atin
g it
s H
ead
O
ffice
in
C
olo
mb
o
and
B
ran
ches
ar
e lo
cate
d
in
Den
iyay
a an
d
Mah
iyan
gan
aya.
Du
rin
g th
e ye
ar 2
011,
aft
er t
he
righ
ts i
ssu
e SM
B L
easi
ng
PL
C r
eco
mm
ence
d i
ts L
easi
ng
bu
sin
ess.
Cas
h g
ener
ated
fro
m
exis
tin
g b
usi
nes
s w
ere
uti
lize
d t
o p
ay m
atu
red
deb
ts a
nd
ove
rhea
ds.
Sin
ce N
ove
mb
er 2
011,
th
e C
om
pan
y co
mm
ence
d a
jo
int
pro
mo
tio
n o
f L
ank
a A
sho
k L
eyla
nd
veh
icle
s o
n l
easi
ng
term
s
wit
h L
ank
a A
sho
k L
eyla
nd
PL
C. Th
is a
ctiv
ity
wil
l be
stre
ngt
hen
ed a
nd
co
nti
nu
ed i
n a
larg
er s
cale
in
201
2.
Su
bsi
dia
ry &
Ass
oci
ate
Co
mp
anie
s
The
po
siti
on
as
at t
he
end
of
2011
is
give
n b
elo
w:
Sub
sid
iari
es –
Un
qu
ote
d
SMB
Mo
ney
Bro
kers
Pvt
. Ltd
. 5
0.99
% h
old
ing
Eq
uit
y A
cco
un
ted
In
vest
ees
SMB
Rea
l Est
ate
Ltd
4
9% h
old
ing
Ken
anga
In
vest
men
t C
orp
ora
tio
n L
td.
49%
ho
ldin
g
SMB
Sec
uri
ties
Pvt
. Ltd
. 4
9.5%
ho
ldin
g
Fin
anci
al R
evie
w
Gro
ss I
nco
me
(201
1)
R
s. 1
30 M
illi
on
Net
In
com
e
R
edu
ced
by
36%
du
e to
sca
lin
g d
ow
n o
f ac
tivi
ties
To
tal P
rovi
sio
n (
Net
)
Rs.
24
Mil
lio
n
Lo
ss A
fter
Tax
Rs.
42
Mil
lio
n
Gro
up
In
com
e (G
ross
- 2
011)
Rs.
130
Mil
lio
n
Lo
ss A
fter
Tax
(G
rou
p)
R
s. 3
5 M
illi
on
The
per
cen
tage
seg
men
t co
ntr
ibu
tio
n f
or
the
con
soli
dat
ed g
rou
p i
nco
me
in 2
011
are
as f
oll
ow
:
Lo
ans
29
%
Lea
sin
g
40%
Mo
ney
Bro
keri
ng
31
%
Hu
man
Res
ou
rces
We
hav
e re
cogn
ized
th
e st
aff a
s th
e b
est
asse
t o
f th
e o
rgan
izat
ion
an
d e
qu
ipp
ed t
hem
wit
h k
no
wle
dge
an
d n
eces
sary
sk
ills
for
thei
r p
rofe
ssio
nal
dev
elo
pm
ent
by p
rovi
din
g o
n t
he
job
tra
inin
g an
d g
ivin
g o
pp
ort
un
itie
s to
par
tici
pat
e in
sem
inar
s,
wo
rksh
op
s an
d c
on
fere
nce
s et
c.
Als
o w
ith
th
e li
mit
ed r
eso
urc
es, C
om
pan
y w
as a
ble
to
org
anis
e fe
w a
ctiv
itie
s fo
r th
e st
aff w
hic
h r
esu
lted
to
mo
tiva
te a
nd
bu
ild
up
th
e te
am s
pir
it a
mo
ng
them
slev
es.
As
at 3
1st
Dec
emb
er 2
011
tota
l st
aff m
emb
ers
atta
ched
to
th
e o
rgan
izat
ion
wer
e 44
.
15
SUB
SID
IAR
IES
, AS
SO
CIA
TE
S A
ND
EQ
UIT
Y A
CC
OU
NT
ED
IN
VE
ST
EE
S
Inve
stm
ents
in
Su
bsi
dia
ry -
Un
qu
ote
d
SMB
Mo
ney
Bro
kers
(P
vt)
Ltd
.50
.99%
Mr.
R.S
.W. S
enan
ayak
e
Mr.
N.N
. Jay
atil
lake
SMB
Sec
uri
ties
(P
vt)
Ltd
.49
.50%
Mr.
R.S
.W. S
enan
ayak
eSt
ock
Bro
ker
M
r. N
.N. J
ayat
illa
keSt
ock
Dea
lers
M
r. M
.S.I
. Pei
ris
Eq
uit
y A
cco
un
ted
In
vest
ees
SMB
Rea
l Est
ate
Ltd
.49
.00%
Mr.
R.S
.W. S
enan
ayak
e
Mr.
A. M
. Jay
asu
riya
Mr.
M.S
.I. P
eiri
s
Co
rpo
rate
Fin
ance
Act
ivit
ies
49.0
0%
LIC
EN
CE
OB
TA
INE
D
Mo
ney
Mar
ket
Act
ivit
ies
Ken
anga
In
vest
men
tC
orp
ora
tio
n L
td.
NA
ME
OF
TH
E C
OM
PAN
Y
P
RIN
CIP
LE
AC
TIV
ITY
Rea
l Est
ate
Dev
elo
pm
ent
Act
ivit
ies
Tra
din
g &
Dea
lin
g in
Eq
uit
y &
Deb
t in
Co
lom
bo
Sto
ck E
xch
ange
% H
OL
DIN
GB
Y S
MB
D
IRE
CT
OR
S
Mr.
N.N
. Jay
atil
lake
Mr.
S.C
. Lia
ng
Mr.
R.S
.W. S
enan
ayak
e
Mr.
M.S
.I. P
eiri
s
Mrs
. T.D
.P.N
.Z.B
.T. I
smai
l
Mr.
L.K
. Kh
ee
Dr.
N.B
. Raz
ak
16
RIS
K M
AN
AG
EM
EN
T
A s
tro
ng
and
per
vasi
ve i
nte
grat
ed r
isk
man
agem
ent
cult
ure
per
vad
es t
he
Co
mp
any
and
pro
vid
es i
t w
ith
th
e fo
un
dat
ion
s
to a
so
un
d p
roce
ss. I
ts f
ram
ewo
rk is
des
ign
ed s
o t
hat
ris
k is
man
aged
in a
way
co
nsi
sten
t w
ith
th
e C
om
pan
y’s
man
agem
ent
ph
ilo
sop
hy.
Thu
s th
e m
ain
ob
ject
ives
of
the
com
pan
y’s
risk
man
agem
ent
po
licy
is
to m
anag
e ri
sk a
t an
acc
epta
ble
lev
el,
reje
ct
un
acce
pta
ble
ris
ks
and
co
nti
nu
ou
sly
mo
nit
or
risk
s in
ord
er t
o m
ain
tain
a q
ual
ity
po
rtfo
lio.
Giv
en b
elo
w a
re t
he
key
risk
fac
tors
th
at m
ay i
mp
act
the
Co
mp
any:
Cre
dit
Ris
k
This
is
defi
ned
as
the
po
ten
tial
fo
r lo
ss a
risi
ng
fro
m t
he
fail
ure
of
a co
un
terp
arty
to
per
form
acc
ord
ing
to i
ts
con
trac
tual
ob
liga
tio
ns
to t
he
Co
mp
any.
To
man
age
this
ris
k e
ffec
tive
ly,
the
Co
mp
any’
s C
red
it C
om
mit
tee
wil
l re
view
th
e cr
edit
po
licy
, m
on
ito
r it
s cr
edit
app
rova
l lim
its,
eva
luat
e th
e fa
cili
ties
wit
h la
rge
exp
osu
re a
nd
cre
dit
wo
rth
ines
s o
f th
e b
orr
ow
er. Th
e co
mm
itte
e al
so
revi
ews
po
rtfo
lio
per
form
ance
on
a r
egu
lar
bas
is a
nd
en
sure
loan
cla
ssifi
cati
on
on
co
llec
tio
n p
erfo
rman
ce.
Mar
ket
Ris
k
This
is t
he
risk
th
at t
he
valu
e o
f a
po
rtfo
lio
wil
l dec
reas
e d
ue
to c
han
ge in
val
ue
of
the
mar
ket
risk
fac
tors
. Thes
e ar
e
chan
ges
in i
nte
rest
rat
es, e
xch
ange
rat
es, e
qu
ity
pri
ces,
cre
dit
sp
read
s et
c.
An
eff
ecti
ve p
rici
ng
po
licy
is
in p
lace
to
mo
nit
or
and
fix
the
len
din
g ra
tes
to m
ain
tain
a m
inim
um
sp
read
.
Liq
uid
ity
Ris
k
Liq
uid
ity
risk
is
mo
nit
ore
d b
y th
e A
sset
an
d L
iab
ilit
y C
om
mit
tee
(AL
CO
) o
f th
e C
om
pan
y. Th
e co
mm
itte
e h
as
intr
od
uce
d s
ou
nd
po
lici
es t
o m
inim
ize
the
risk
.
Op
erat
ion
al R
isk
Op
erat
ion
al r
isk
is
the
risk
of
dir
ect
or
ind
irec
t lo
ss d
ue
to a
n e
ven
t o
r ac
tio
n r
esu
ltin
g fr
om
th
e fa
ilu
re o
f in
tern
al
pro
cess
es, p
eop
le a
nd
sys
tem
s, o
r fr
om
ext
ern
al e
ven
ts.
Rep
uta
tio
nal
Ris
k
This
is
the
loss
of
bu
sin
ess
rep
uta
tio
n, e
stab
lish
ed o
ver
a p
erio
d, a
s a
resu
lt o
f n
egat
ive
pu
bli
city
or
adve
rse
mar
ket
per
cep
tio
n o
f th
e co
mp
any.
Rep
uta
tio
n i
s o
ften
eq
uat
ed w
ith
th
e go
od
wil
l of
the
bu
sin
ess.
To
ove
rco
me
this
ris
k t
he
Co
mp
any,
as
has
bee
n i
n t
he
pas
t, w
ill
con
tin
ue
to m
eet
all
stat
uto
ry,
regu
lato
ry a
nd
com
pli
ance
req
uir
emen
ts.
17
CO
RP
OR
AT
E G
OV
ER
NA
NC
E A
ND
CO
MP
LIA
NC
E
Co
rpo
rate
Go
vern
ance
is t
he
pro
cess
by
wh
ich
co
mp
anie
s ar
e d
irec
ted
an
d c
on
tro
lled
by
the
Bo
ard
of D
irec
tors
in t
he
bes
t in
tere
st o
f th
e st
akeh
old
ers
ensu
rin
g gr
eate
r tr
ansp
aren
cy a
nd
bet
ter
and
tim
ely
fin
anci
al r
epo
rtin
g.
SMB
Lea
sin
g P
LC
. is
com
mit
ted
to
up
ho
ld t
he
hig
hes
t st
and
ard
s o
f C
orp
ora
te G
ove
rnan
ce a
nd
eth
ical
co
nd
uct
in
all
it’s
b
usi
nes
s ac
tivi
ties
. Th
e B
oar
d o
f D
irec
tors
are
res
po
nsi
ble
fo
r cr
eati
ng
and
del
iver
ing
sust
ain
able
sta
keh
old
er v
alu
e th
rou
gh t
he
man
agem
ent
of
SMB
Lea
sin
g P
LC
’s b
usi
nes
ses.
The
dis
clo
sure
wil
l in
clu
de
mea
sure
s ad
op
ted
to
pro
tect
th
e in
tere
st o
f st
akeh
old
ers,
th
e re
spo
nsi
bil
ity
fo
r th
e sy
stem
of
inte
rnal
co
ntr
ols
imp
lem
ente
d b
y th
e m
anag
emen
t, t
he
Co
mp
anie
s co
mm
itm
ent
to e
thic
al s
tan
dar
ds
of
bu
sin
ess
con
du
ct,
info
rmat
ion
of
par
ticu
lar
inte
rest
to
em
plo
yees
, co
mm
un
ity
and
cu
sto
mer
s.
Sta
tem
ent
of
Co
mp
lian
ceSM
B
Lea
sin
g P
LC
has
pla
ced
gre
ater
fo
cus
on
co
mp
lian
ce w
ith
th
e re
gula
tio
ns
of
regu
lato
ry b
od
ies
such
as
The
Cen
tral
B
ank
of
Sri
Lan
ka,
Sec
uri
ties
an
d E
xch
ange
Co
mm
issi
on
an
d Th
e C
olo
mb
o S
tock
Exc
han
ge.
The
Bo
ard
en
sure
s th
at t
he
Co
mp
any
com
pli
es w
ith
th
e C
od
e o
f B
est
Pra
ctic
e o
n C
orp
ora
te G
ove
rnan
ce i
ssu
ed b
y th
e In
stit
ute
of
Ch
arte
red
Acc
ou
nta
nts
of
Sri
Lan
ka.
The
foll
ow
ing
Tab
le g
ives
th
e C
orp
ora
te G
ove
rnan
ce P
rin
cip
les
and
th
e C
om
pli
ance
car
ried
ou
t.
Mee
tin
gs
Res
po
nsi
bil
itie
s o
f th
e B
oar
d
Co
rpo
rate
Go
vern
ance
Pri
nci
ple
sC
om
pli
ance
The
Bo
ard
s o
f D
irec
tors
Co
mp
osi
tio
n o
f th
e B
oar
d
Ind
epen
den
t p
rofe
ssio
nal
ad
vice
Ded
icat
ion
of
adeq
uat
e ti
me
&eff
ort
fo
r th
e m
atte
rs o
f th
eB
oar
d a
nd
th
e C
om
pan
y
18
The
Bo
ard
co
mp
rise
s o
f se
ven
Dir
ecto
rs o
ut
of
wh
ich
six
are
no
n E
xecu
tive
D
irec
tors
. The
Ch
airm
an a
lso
act
as
a n
on
Exe
cuti
ve D
irec
tor.
All
Dir
ecto
rs e
nco
mp
ass
a w
ide
ran
ge o
f sk
ills
, tal
ents
an
d e
xper
ien
ce r
equ
ired
to
ad
d v
alu
e to
en
han
ce t
he
bu
sin
ess.
The
pro
file
s o
f th
e D
irec
tors
are
set
ou
t in
pag
es 1
1 to
13
Mee
tin
gs a
re h
eld
eve
ry m
on
th t
o r
evie
w a
nd
eva
luat
e th
e p
erfo
rman
ce o
f th
e co
mp
any.
Sp
ecia
l mee
tin
gs a
re c
on
ven
ed w
hen
nec
essa
ry.
The
ult
imat
e re
spo
nsi
bil
ity
of
all
op
erat
ion
s o
f th
e C
om
pan
y an
d
bei
ng
acco
un
tab
le t
o t
he
stak
eho
lder
s li
es w
ith
Bo
ard
of
Dir
ecto
rs. M
atte
rs r
eser
ved
fo
r th
e B
oar
d a
nd
th
e su
b c
om
mit
tees
an
d t
ho
se d
eleg
ated
to
th
e m
anag
emen
t ar
e cl
earl
y d
efin
ed.
The
Au
dit
Co
mm
itte
e is
a s
ub
co
mm
itte
e o
f B
oar
d.
The
Bo
ard
en
sure
s:
� F
orm
ula
tin
g co
rpo
rate
str
ateg
y &
str
ateg
ic d
irec
tio
n o
f th
e C
om
pan
y�
Mo
nit
ori
ng
the
effec
tive
nes
s o
f th
e C
om
pan
ies
risk
man
agem
ent
stra
tegy
� C
om
pli
ance
wit
h e
thic
al a
nd
lega
l sta
nd
ard
s�
Rev
iew
ing
the
inte
grit
y o
f th
e C
om
pan
ies
Acc
ou
nti
ng
and
Fin
anci
al
Stat
emen
ts�
Ap
pro
val o
f F
inan
cial
Sta
tem
ents
fo
r p
ub
lica
tio
n�
Ap
pro
val o
f B
ud
get
and
Co
rpo
rate
Pla
ns
� Th
e in
tere
sts
of
Shar
eho
lder
s an
d o
ther
sta
keh
old
ers
are
safe
guar
ded
� M
akin
g re
com
men
dat
ion
s to
sh
areh
old
ers
on
th
e ch
ange
s o
f th
e B
oar
d
The
Bo
ard
see
ks
ind
epen
den
t p
rofe
ssio
nal
ad
vice
wh
enev
er it
is
nec
essa
ry.
Eac
h D
irec
tor
bri
ngs
in
dep
end
ent
jud
gmen
t to
bea
r o
n m
atte
rs t
he
Bo
ard
is
resp
on
sib
le f
or,
an
d d
edic
ates
th
e ti
me
and
eff
ort
nec
essa
ry t
o c
arry
ou
t h
is
resp
on
sib
ilit
ies.
CO
RP
OR
AT
E G
OV
ER
NA
NC
E A
ND
CO
MP
LIA
NC
E
Co
mp
lian
ce
Pre
sen
tati
on
s ar
e m
ade
to t
he
Bo
ard
fro
m t
ime
to t
ime
rega
rdin
g ch
ange
s in
in
du
stry
rel
ated
mat
ters
.
The
Bo
ard
of
Dir
ecto
rs o
f th
e C
om
pan
y h
as a
pp
oin
ted
SSP
Co
rpo
rate
Ser
vice
s (P
vt)
Ltd
. as
Co
mp
any
Secr
etar
ies
w.e
.f.
17th
Mar
ch,
2010
. A
ll D
irec
tors
hav
e ac
cess
to
th
e se
cret
ary,
wh
o i
s re
spo
nsi
ble
to
th
e B
oar
d t
o e
nsu
re t
hat
Bo
ard
p
roce
du
res
and
th
e ap
pli
cab
le r
ule
s an
d r
egu
lati
on
s ar
e co
mp
lied
wit
h.
The
Art
icle
s o
f th
e C
om
pan
y p
rovi
des
th
at t
he
Bo
ard
may
ap
po
int
or
rem
ove
th
e se
cret
ary.
Eac
h D
irec
tor
bri
ngs
in
dep
end
ent
and
ob
ject
ive
jud
gmen
t o
n t
he
mat
ters
of
the
Bo
ard
. Th
e co
mp
osi
tio
n o
f th
e B
oar
d a
lso
en
sure
s th
e b
alan
ce b
etw
een
ex
ecu
tive
exp
edie
ncy
an
d i
nd
epen
den
t ju
dgm
ent.
The
Ch
airm
an i
s a
No
n-E
xecu
tive
Dir
ecto
r. Th
e C
hai
rman
’s r
ole
pro
vid
es
effec
tive
lead
ersh
ip a
nd
str
ateg
ic i
nsi
ght
to t
he
issu
es o
f th
e B
oar
d.
The
Bo
ard
in
clu
des
th
ree
Ch
arte
red
o
r M
anag
emen
t A
cco
un
tan
ts.
Thes
e m
emb
ers
hav
e th
e ac
um
en a
nd
kn
ow
led
ge t
o p
rovi
de
the
Bo
ard
wit
h n
eces
sary
gu
idan
ce i
n c
on
du
ctin
g it
s b
usi
nes
s.
All
Dir
ecto
rs a
re p
rovi
ded
wit
h t
imel
y, a
ccu
rate
an
d c
lear
in
form
atio
n o
n a
re
gula
r b
asis
. Req
ues
ts a
re m
ade
for
furt
her
in
form
atio
n i
f n
eces
sary
.
The
Co
mp
any
do
es n
ot
hav
e a
no
min
atio
n c
om
mit
tee
or
pro
ced
ure
for
mak
ing
reco
mm
end
atio
ns
on
n
ew
app
oin
tmen
ts
to
the
Bo
ard
. N
ew
Dir
ecto
rs,
incl
ud
ing
the
Ch
airm
an a
nd
th
e D
epu
ty C
hai
rman
are
ap
po
inte
d b
y th
e B
oar
d.
Det
ails
o
f n
ew
app
oin
tmen
ts
are
dis
clo
sed
to
th
e sh
areh
old
ers
on
th
eir
app
oin
tmen
t. R
egu
lato
ry a
uth
ori
ties
are
als
o i
nfo
rmed
as
req
uir
ed.
The
Art
icle
s o
f A
sso
ciat
ion
pro
vid
es f
or
¼th
of
the
dir
ecto
rs t
o r
etir
e by
ro
tati
on
eac
h y
ear,
wit
h t
he
exce
pti
on
of
Ch
airm
an a
nd
Dep
uty
Ch
airm
an.
Ther
e is
no
fo
rmal
pro
ced
ure
to
eva
luat
e th
e B
oar
d p
erfo
rman
ce.
Ch
airm
an
ensu
res
that
th
e B
oar
d f
un
ctio
ns
effec
tive
ly a
nd
effi
cien
tly.
The
Bo
ard
set
s fi
nan
cial
an
d n
on
fin
anci
al g
oal
s an
d o
bje
ctiv
es fo
r th
e C
EO
an
d
del
egat
es t
he
req
uir
ed l
evel
of
auth
ori
ty t
o t
he
man
agem
ent
to a
chie
ve t
he
stra
tegi
c o
bje
ctiv
es.
The
Bo
ard
of
Dir
ecto
rs d
eter
min
es t
he
rem
un
erat
ion
pac
kag
e o
f th
e E
xecu
tive
D
irec
tor
bas
ed o
n t
he
per
form
ance
of
the
Co
mp
any.
The
tota
l re
mu
ner
atio
n o
f th
e D
irec
tors
’ is
dis
clo
sed
on
pag
e 38
of
the
An
nu
al
Rep
ort
.
The
pri
mar
y m
od
e of
co
mm
un
icat
ion
b
etw
een
th
e C
omp
any
and
th
e sh
areh
old
ers
are
the
An
nu
al
Rep
ort
and
th
e A
nn
ual
G
ener
al
Mee
tin
g.
Shar
eho
lder
s h
ave
an o
pp
ortu
nit
y to
par
tici
pat
e in
com
pan
y d
elib
erat
ion
s at
th
e A
nn
ual
Gen
eral
Mee
tin
g of
th
e C
om
pan
y.
Fin
anci
al A
cum
enF
inan
cial
acu
men
of
the
Bo
ard
Co
rpo
rate
Go
vern
ance
Pri
nci
ple
s
Tra
inin
g o
f th
e D
irec
tors
Co
mp
any
Secr
etar
y
Ind
epen
den
t ju
dgm
ent
Ch
airm
an’s
Ro
le
Su
pp
ly o
f In
form
atio
n
Tim
ely
and
acc
ura
te m
anag
emen
tin
form
atio
n
Ap
po
intm
ents
to
th
e B
oar
d
Ava
ilab
ilit
y o
f a
form
al a
nd
tran
spar
ent
pro
ced
ure
fo
rn
ew a
pp
oin
tmen
ts
Dis
clo
sure
of
det
ails
of
new
Dir
ecto
rs
Re-
elec
tio
n
Re-
elec
tio
n o
f D
irec
tors
Ap
pra
isal
of
Bo
ard
Per
form
ance
Ap
pra
isal
of
the
CE
O
Dir
ecto
rs’ R
emu
ner
atio
nR
emu
ner
atio
n P
roce
du
re
Con
tin
ued
Dis
clo
sure
of
Rem
un
erat
ion
Rel
atio
ns
wit
h S
har
eho
lder
s
Co
nst
ruct
ive
use
of
the
An
nu
al G
ener
al M
eeti
ng
19
CO
RP
OR
AT
E G
OV
ER
NA
NC
E A
ND
CO
MP
LIA
NC
E
Acc
ou
nta
bil
ity
and
Au
dit
Fin
anci
al R
epo
rtin
gSt
atu
tory
an
d r
egu
lato
ry r
epo
rtin
g
Dir
ecto
rs’ R
epor
t in
the
An
nual
Rep
ort
Dir
ecto
rs’ r
esp
on
sib
ilit
y st
atem
ent
Stat
emen
t o
f th
e E
xter
nal
Au
dit
ors
’
Op
erat
ion
al a
nd
Fin
anci
al R
evie
win
th
e A
nn
ual
Rep
ort
Dec
lara
tio
n o
f th
e B
oar
d t
hat
th
eb
usi
nes
s is
a g
oin
g co
nce
rn
Inte
rnal
Co
ntr
ols
Mai
nta
inin
g a
sou
nd
sys
tem
of
inte
rnal
co
ntr
ol a
nd
ris
km
anag
emen
t
Rev
iew
ing
the
effec
tive
nes
s o
f th
eIn
tern
al C
on
tro
l Sys
tem
Au
dit
Co
mm
itte
e an
d A
ud
ito
rs
Em
plo
yee/
Oth
er S
tak
eho
lder
Rig
hts
of
oth
er E
mp
loye
es/
Oth
er s
take
ho
lder
s
Cir
cula
tio
n o
f N
oti
ce o
f th
e A
GM
Maj
or
tran
sact
ion
s
Co
rpo
rate
Go
vern
ance
Pri
nci
ple
sC
om
pli
ance
20
The
An
nu
al R
epo
rt, F
inan
cial
Sta
tem
ents
an
d t
he
no
tice
of
the
mee
tin
g ar
e se
nt
to s
har
eho
lder
s w
ith
a n
oti
ce p
erio
d o
f at
lea
st 2
1 ca
len
dar
day
s (
no
t le
ss t
han
15
wo
rkin
g d
ays)
.
Ther
e w
ere
no
maj
or
tran
sact
ion
s m
ater
iall
y aff
ecti
ng
the
bal
ance
sh
eet
in 2
011.
The
Co
mp
any
pla
ces
grea
t em
ph
asis
on
co
mp
lete
dis
clo
sure
of
bo
th fi
nan
cial
an
d n
on fi
nan
cial
in
form
atio
n a
nd
has
pre
sen
ted
a b
alan
ced
ass
essm
ent
of
Co
mp
any’
s p
osi
tio
n fo
r th
e ye
ar e
nd
ed 3
1st
Dec
emb
er 2
011
and
at
each
qu
arte
r.
In p
rep
arin
g th
e q
uar
terl
y an
d a
nn
ual
fin
anci
al s
tate
men
ts t
he
Co
mp
any
has
co
mp
lied
wit
h C
omp
anie
s A
ct N
o 7
of 2
007,
Fin
ance
Lea
sin
g (A
men
dm
ent)
Act
N
o. 2
4 o
f 20
05 a
nd
is
pre
sen
ted
in
co
nfo
rmit
y w
ith
Sri
Lan
ka A
cco
un
tin
g St
and
ard
s. Th
e C
om
pan
y h
as a
lso
co
mp
lied
wit
h t
he
req
uir
emen
ts o
f th
e re
gula
tory
au
tho
riti
es
such
as
the
Cen
tral
Ban
k of
Sri
Lan
ka,
Secu
riti
es a
nd
E
xch
ange
Co
mm
issi
on a
nd
Co
lom
bo
Sto
ck E
xch
ange
.
Dir
ecto
rs’ r
epo
rt is
giv
en o
n p
ages
23
to 2
5 o
f th
e A
nn
ual
Rep
ort
.
The
stat
emen
t o
f D
irec
tors
’ re
spon
sibi
lity
for
fin
anci
al r
epor
tin
g is
giv
en o
n
pag
e 26
of
the
An
nu
al R
epor
t.
The
Au
dit
ors
’ re
po
rt i
s gi
ven
on
pag
es 2
7 &
28
of
the
An
nu
al R
epo
rt a
nd
in
clu
des
th
eir
on t
hei
r re
po
rtin
g re
spo
nsi
bili
ties
sco
pe
for
the
aud
it a
nd
th
e o
pin
ion
on
th
e fi
nan
cial
sta
tem
ents
.
The
Op
erat
ion
al a
nd
Fin
anci
al R
evie
w i
s gi
ven
on
pag
es 1
5 o
f th
e A
nn
ual
R
epo
rt.
This
dec
lara
tio
n is
giv
en o
n p
age
23 t
o 2
5 of
th
e A
nn
ual
Rep
ort.
The
ult
imat
e re
spo
nsi
bili
ty o
f in
tern
al c
on
tro
ls a
nd
mit
igat
ing
risk
s re
sts
wit
h
the
Bo
ard
of
Dir
ecto
rs. C
omp
any’
s in
tern
al c
ontr
ol s
yste
ms
and
pro
ced
ure
s ar
e d
esig
ned
to e
lim
inat
e p
oss
ible
ris
ks a
nd
min
imiz
e an
y u
nfo
rese
en r
isks
wh
ile
an
effec
tive
dis
aste
r re
cove
ry p
lan
is
in p
lace
. A
det
ail
risk
man
agem
ent
rep
ort
is
give
n o
n p
age
17 o
f th
e A
nn
ual
Rep
ort.
Reg
ula
r re
view
s ar
e ca
rrie
d
ou
t an
d
a q
uar
terl
y in
tern
al
aud
it
rep
ort
is
su
bmit
ted
to
th
e b
oar
d.
The
Au
dit
C
om
mit
tee
revi
ews
and
ev
alu
ates
th
e eff
ecti
ven
ess
of
the
Co
mp
any’
s in
tern
al a
ud
it a
nd
co
ntr
ol s
yste
m.
Au
dit
C
om
mit
tee
con
sist
ed
of
Ind
epen
den
t N
on-E
xecu
tive
C
hai
rman
, In
dep
end
ent
No
n-E
xecu
tive
Dir
ecto
r an
d a
Non
-Exe
cuti
ve D
irec
tor.
The
said
co
mm
itte
e en
sure
th
at t
he
com
pan
y co
mp
lies
wit
h t
he
dir
ecti
on
s is
sued
by
the
Dep
artm
ent
of
Su
per
visi
on o
f N
on
Ban
k F
inan
cial
In
stit
uto
ns
of t
he
Cen
tral
B
ank
of
Sri L
anka
.
The
Co
mp
any
is c
onsc
iou
s of
its
res
pon
sibi
lity
tow
ard
s it
s st
akeh
old
ers
and
is
focu
s in
val
ue
add
itio
n t
o t
he
Co
mp
any.
Sta
keh
old
ers
hav
e ac
cess
to
rel
evan
t,
suffi
cien
t an
d r
elia
ble
info
rmat
ion
on
a t
imel
y an
d r
egu
lar
bas
is.
AU
DIT
CO
MM
ITT
EE
RE
PO
RT
CO
MP
OSI
TIO
N O
F T
HE
CO
MM
ITT
EE
The
Bo
ard
of
Dir
ecto
rs a
pp
oin
ted
an
Au
dit
Co
mm
itte
e co
mp
risi
ng
the
foll
ow
ing
No
n E
xecu
tive
Dir
ecto
rs o
f SM
B
Lea
sin
g P
lc d
uri
ng
the
year
en
ded
31s
t D
ecem
ber
201
1.
Mr.
T. S
om
esw
aran
- C
hai
rman
Mr.
J. C
. Ko
rale
Mr.
G. C
. B. R
anas
ingh
e
ME
ET
ING
S
Du
rin
g th
e fi
nan
cial
yea
r en
ded
31s
t D
ecem
ber
201
1 el
even
Au
dit
Co
mm
itte
e M
eeti
ngs
wer
e h
eld
an
d p
roce
edin
gs o
f
thes
e m
eeti
ngs
wer
e re
po
rted
to
th
e B
oar
d o
n a
reg
ula
r b
asis
. The
Exe
cuti
ve D
irec
tor,
Ch
ief
Exe
cuti
ve O
ffice
r, H
ead
of
Fin
ance
an
d t
he
rep
rese
nta
tive
s o
f SJ
MS
Ass
oci
ates
on
beh
alf
of
Inte
rnal
Au
dit
ors
att
end
ed t
he
mee
tin
gs b
y in
vita
tio
n.
The
com
mit
tee
met
wit
h t
he
Ext
ern
al A
ud
ito
rs M
esse
rs K
PM
G d
uri
ng
the
year
un
der
rev
iew
as
wel
l as
im
med
iate
ly
after
th
e fi
nan
cial
yea
r to
pro
vid
e th
e en
viro
nm
ent
for
a fr
ank
dia
logu
e w
ith
th
e co
mm
itte
e. Th
is o
pp
ort
un
ity
too
was
use
d t
o d
iscu
ss i
n a
dva
nce
th
e ti
me
fram
e fo
r th
e co
ncl
usi
on
of
the
fin
anci
al a
ud
it s
o t
hat
reg
ula
tory
req
uir
emen
ts a
re
com
pli
ed w
ith
.
RO
LE
AN
D F
UN
CT
ION
S O
F T
HE
AU
DIT
CO
MM
ITT
EE
The
role
of
the
Au
dit
Co
mm
itte
e is
to
ass
ist
the
Bo
ard
of
Dir
ecto
rs in
fu
lfill
ing
the
ove
rall
res
po
nsi
bil
ity
of
SMB
Lea
sin
g
Plc
an
d a
ssis
t th
e B
oar
d i
n d
isch
argi
ng
the
resp
on
sib
ilit
y o
f th
e B
oar
d i
n t
erm
s o
f co
mp
lian
ce t
o t
he
law
s, r
egu
lati
on
s,
cod
e o
f co
nd
uct
an
d b
est
pra
ctic
es w
ith
th
e vi
ew o
f sa
fegu
ard
ing
the
inte
rest
of
all
stak
eho
lder
s o
f th
e en
tity
in
an
op
tim
um
man
ner
. R
epre
sen
tati
ves
of
the
firm
of
Ch
arte
red
Acc
ou
nta
nts
exe
cuti
ng
the
fun
ctio
ns
of
the
Inte
rnal
Au
dit
ors
wer
e in
vite
d t
o t
he
Au
dit
Co
mm
itte
e m
eeti
ngs
co
nve
ned
to
geth
er w
ith
th
e E
xecu
tive
Dir
ecto
r, C
EO
, Hea
d o
f
Fin
ance
to
dis
cuss
th
e In
tern
al A
ud
it R
epo
rts.
The
Au
dit
Co
mm
itte
e p
rovi
des
th
e fo
rum
to
rev
iew
in
tern
al a
ud
it
rep
ort
s, c
on
sid
er t
he
fin
din
gs,
to r
eco
mm
end
co
rrec
tive
act
ion
s to
be
take
n b
y th
e M
anag
emen
t w
ith
fo
llo
w u
p
mo
nit
ori
ng
wit
h a
vie
w t
o m
anag
e si
gnifi
can
t b
usi
nes
s ri
sk a
nd
co
ntr
ols
. The
Au
dit
Co
mm
itte
e al
so m
eets
th
e E
xter
nal
Au
dit
ors
as
app
rop
riat
e to
dis
cuss
th
e co
ncl
usi
on
of
the
aud
it w
ith
par
ticu
lar
refe
ren
ce t
o t
he
man
agem
ent
lett
er. Th
is
Co
mm
itte
e is
th
e m
ean
s by
wh
ich
th
e B
oar
d is
in t
he
con
tin
uin
g p
roce
ss o
f en
han
cin
g in
tern
al c
on
tro
ls a
nd
pro
vid
es a
reas
on
able
ass
ura
nce
th
at c
om
pan
y’s
affai
rs a
re m
anag
ed i
n a
cco
rdan
ce w
ith
sta
tuto
ry r
equ
irem
ents
an
d c
om
pan
y’s
asse
ts a
nd
in
com
e ar
e p
rop
erly
acc
ou
nte
d f
or
wit
hin
th
e am
bit
of
the
aud
it c
om
mit
tee
char
ter
and
oth
er c
on
stra
ints
.
So
urc
ing
of
Inte
rnal
Au
dit
Fu
nct
ion
Wit
h t
he
con
curr
ence
of
the
Bo
ard
, th
e A
ud
it C
om
mit
tee
con
tin
ues
to
en
gage
ser
vice
s o
f an
in
dep
end
ent
firm
of
Ch
arte
red
Acc
ou
nta
nts
nam
ely,
SJM
S A
sso
ciat
es w
ith
a v
iew
of
dis
char
gin
g In
tern
al A
ud
it f
un
ctio
ns
ind
epen
den
tly.
SJM
S A
sso
ciat
es h
ave
bee
n c
arry
ing
ou
t p
erio
dic
au
dit
s o
f th
e ke
y ar
eas
of t
he
bu
sin
ess
in a
n o
rder
ly m
ann
er a
nd
rep
ort
wit
h c
om
pli
ance
an
d o
r ex
pla
nat
ion
s o
f th
e o
per
atio
nal
man
agem
ent.
(Sgd
)
G C
B R
anas
ing
he
Mem
ber
of
the
Au
dit
Co
mm
itte
e
30th
May
201
2
21
FIN
AN
CIA
L S
TA
TE
ME
NT
S
An
nu
al R
epo
rt o
f th
e B
oar
d o
f D
irec
tors
23
on
th
e A
ffai
rs o
f th
e C
om
pan
y
Dir
ecto
rs R
esp
on
sib
ilit
y St
atem
ent
26
Ind
epen
den
t A
ud
ito
rs’ R
epo
rt
27
Inco
me
Stat
emen
t
29
Bal
ance
Sh
eet
30
Stat
emen
t o
f C
han
ges
in E
qu
ity
31
Cas
hfl
ow
Sta
tem
ent
32
No
tes
to t
he
Fin
anci
al S
tate
men
ts
33
Nu
mb
ers
pla
y a
vita
l ro
le
22
AN
NU
AL
RE
PO
RT
OF
TH
E B
OA
RD
OF
DIR
EC
TO
RS
ON
TH
E A
FFA
IRS
OF
TH
E C
OM
PAN
Y
Gro
up
Rev
enu
e
The
reve
nu
e o
f th
e gr
ou
p w
as R
s. 1
30 M
n (
2010
– R
s.
141M
n).
An
an
alys
is o
f r
even
ue
bas
ed o
n s
egm
ents
is
dis
clo
sed
in
th
e se
gmen
tal
anal
ysis
on
pag
e 55
in
th
is
rep
ort
.
Pro
per
ty, P
lan
t &
Eq
uip
men
t
Det
ails
re
lati
ng
to
Pro
per
ty,
Pla
nt
&
Eq
uip
men
t ar
e
dis
clo
sed
in N
ote
21
of
the
Fin
anci
al S
tate
men
ts o
n p
ages
47.
Cap
ital
Exp
end
itu
re
The
tota
l cap
ital
exp
end
itu
re o
f th
e gr
ou
p in
curr
ed o
n t
he
acq
uis
itio
n o
f P
rop
erty
, P
lan
t &
Eq
uip
men
t d
uri
ng
the
year
wh
ich
is g
iven
in N
ote
21
of t
he
Fin
anci
al S
tate
men
ts
amo
un
ts t
o R
s. 7
.0M
n. (
2010
- R
s. 6
.3M
n)
Tax
atio
n
A d
etai
led
des
crip
tio
n o
f th
e in
com
e ta
x ra
te a
pp
lica
ble
to
the
com
pan
y an
d
a re
con
cili
atio
n
of
the
acco
un
tin
g
pro
fits
wit
h t
he
taxa
ble
pro
fits
are
giv
en i
n N
ote
10
of
the
Fin
anci
al S
tate
men
ts.
It i
s th
e p
oli
cy o
f th
e gr
ou
p t
o
pro
vid
e fo
r d
efer
red
tax
atio
n o
n a
ll k
no
wn
tem
po
rary
diff
eren
ces
at
the
Bal
ance
Sh
eet
dat
e o
n
the
liab
ilit
y
met
ho
d.
The
def
erre
d t
ax d
etai
l o
f th
e co
mp
any
is g
iven
in N
ote
10.
b o
f th
e F
inan
cial
Sta
tem
ents
.
Fin
anci
al R
esu
lts
of
the
Co
mp
any
for
the
Yea
r
31
.12
.20
11
Rs.
'00
0
Pro
fit/
(Lo
ss)
bef
ore
Tax
atio
n
Inco
me
Tax
Pro
fit/
(Lo
ss)
after
Tax
atio
n
Un
app
rop
riat
ed L
oss
Bro
ugh
t fo
rwar
d
Cap
ital
Red
uct
ion
Tra
nsf
er t
o S
tatu
tory
Res
erve
Fu
nd
Acc
um
ula
ted
Lo
sses
(39,
455)
(3,1
48)
(42,
603)
(636
,419
)
636,
419
(44,
202)-
Co
st o
f Sh
are
issu
e(1
,600
)
31
.12
.20
10
Rs.
'00
0
16,6
11
(2,5
15)
14,0
96
(637
,356
) -
(636
,419
)
(8,6
18)
(4,5
40)
Mar
ket
Val
ue
of
Pro
per
ties
The
carr
yin
g va
lue
of i
nve
stm
ent
pro
per
ties
ow
ned
by
the
Co
mp
any
is
stat
ed
in
the
No
te
20
to
the
Fin
anci
al
Stat
emen
ts.
23
The
Dir
ecto
rs o
f SM
B L
easi
ng
PL
C h
ave
ple
asu
re i
n
pre
sen
tin
g h
erew
ith
th
eir
rep
ort
to
geth
er
wit
h
the
Au
dit
ed C
on
soli
dat
ed F
inan
cial
Sta
tem
ents
fo
r th
e ye
ar
end
ed 3
1st
Dec
emb
er 2
011
wh
ich
wer
e ap
pro
ved
by
the
Dir
ecto
rs o
n 3
0th
May
201
2.
Pri
nci
pal
Act
ivit
ies
The
pri
nci
pal
ac
tivi
ties
o
f th
e C
om
pan
y ar
e o
ffer
ing
fin
ance
leas
ing
and
Lo
an f
acil
itie
s
Pri
nci
pal
Act
ivit
ies
of
the
Su
bsi
dia
ry
The
pri
nci
pal
ac
tivi
ty
of
the
Co
mp
any'
s Su
bsi
dia
ry,
nam
ely,
SM
B M
on
ey B
roke
rs (
Pvt
) L
td, i
s m
on
ey m
arke
t
acti
viti
es.
Pri
nci
pal
Act
ivit
ies
of
Ass
oci
ates
SMB
Sec
uri
ties
(P
vt)
Ltd
is
trad
ing
and
dea
lin
g in
Eq
uit
y
and
Deb
t in
th
e C
olo
mb
o S
tock
Exc
han
ge.
Ken
anga
In
vest
men
t C
orp
ora
tio
n
Ltd
is
en
gage
d
in
Inve
stm
ent
b
ank
ing
rela
ted
ac
tivi
ties
&
p
rovi
din
g
advi
sory
ser
vice
s.
SMB
R
eal
Est
ate
Ltd
is
en
gage
d
in
real
es
tate
dev
elo
pm
ent
acti
viti
es.
Rev
iew
of
Op
erat
ion
s
The
Ch
airm
an's
Mes
sage
des
crib
es t
he
op
erat
ion
s o
f th
e
Co
mp
any
du
rin
g th
e ye
ar e
nd
ed 3
1st D
ecem
ber
201
1 an
d
con
tain
a f
air
view
of
the
Co
mp
any'
s aff
airs
.
Fin
anci
al S
tate
men
ts
The
Fin
anci
al S
tate
men
ts o
f th
e G
rou
p a
nd
th
e C
om
pan
y
are
give
n o
n p
ages
29
to 5
5 o
f th
e A
nn
ual
Rep
ort
.
Au
dit
or'
s R
epo
rt
The
Au
dit
or’s
Rep
ort
on
th
e F
inan
cial
Sta
tem
ents
is g
iven
on
th
e p
ages
27
& 2
8 o
f th
e A
nn
ual
Rep
ort
.
Sig
nifi
can
t A
cco
un
tin
g P
oli
cies
The
Sign
ifica
nt
Acc
ou
nti
ng
Po
lici
es
ado
pte
d
in
the
pre
par
atio
n o
f Fin
anci
al S
tate
men
ts a
re g
iven
on
pag
es 3
3
to 3
7 o
f th
e A
nn
ual
Rep
ort
.
Dir
ecto
rs R
emu
ner
atio
n
Dir
ecto
rs R
emu
ner
atio
n o
f th
e C
om
pan
y fo
r th
e fi
nan
cial
year
en
ded
31s
t D
ecem
ber
201
1 ar
e gi
ven
on
No
te 8
to
the
Fin
anci
al S
tate
men
ts o
n p
age
38.
AN
NU
AL
RE
PO
RT
OF
TH
E B
OA
RD
OF
DIR
EC
TO
RS
ON
TH
E A
FFA
IRS
OF
TH
E C
OM
PAN
Y
Inve
stm
ents
Det
aile
d d
escr
ipti
on
s o
f th
e In
vest
men
ts m
ade
by t
he
Co
mp
any
is
give
n
in
the
No
te
20a
of
the
Fin
anci
al
Stat
emen
ts.
Res
erve
s
The
rese
rves
of
the
gro
up
are
dis
clo
sed
in
th
e St
atem
ent
of
Ch
ange
s in
Eq
uit
y.
Sta
ted
Cap
ital
The
stat
ed c
apit
al a
s at
31s
t D
ecem
ber
201
1 w
as R
s.
501.
5Mn
aft
er
the
Cap
ital
R
edu
ctio
n
(201
0 -
Rs.
1,14
6.9M
n)
con
sist
ing
of
826,
486,
514
ord
inar
y vo
tin
g
shar
es a
nd
560
,000
,000
ord
inar
y n
on
-vo
tin
g sh
ares
. Pag
e
59 o
f th
is r
epo
rt d
escr
ibe
the
det
ails
of
the
dis
trib
uti
on
and
co
mp
osi
tio
n o
f Sh
areh
old
ers.
Co
nve
rsio
n o
f W
arra
nts
The
free
war
ran
ts w
hic
h w
ere
issu
ed w
ith
th
e O
rdin
ary
Vo
tin
g Sh
ares
an
d O
rdin
ary
No
n V
oti
ng
Shar
es t
hro
ugh
the
righ
ts i
ssu
e in
th
e ye
ar 2
010
wer
e co
nve
rted
in
to
Ord
inar
y V
oti
ng
Shar
es a
nd
Ord
inar
y N
on
Vo
tin
g Sh
ares
of
the
Co
mp
any
in D
ecem
ber
201
1 o
n t
he
foll
ow
ing
bas
is.
War
ran
ts (
Ord
inar
y V
oti
ng
Shar
es)
- in
th
e ra
tio
of
1 w
arra
nt
for
1 ri
ght,
at
a p
rice
of
Rs.
1/-
per
sh
are.
War
ran
ts (
Ord
inar
y N
on
Vo
tin
g Sh
ares
) -
in t
he
rati
o o
f 1
war
ran
t fo
r 1
rig
ht,
at
a p
rice
of
Rs.
0.8
0
per
sh
are.
As
a re
sult
o
f th
e sa
id
con
vers
ion
o
f w
arra
nts
, R
s.
332,
105,
128
and
Rs,
42,
461,
311
was
in
fuse
d i
n t
o t
he
stat
ed c
apit
al o
f th
e co
mp
any
thro
ugh
Ord
inar
y (V
oti
ng)
shar
es a
nd
Ord
inar
y (N
on
Vo
tin
g) s
har
es r
esp
ecti
vely
, as
at 3
1st
Dec
emb
er 2
011.
Sh
are
Info
rmat
ion
Info
rmat
ion
rel
atin
g to
Ear
nin
gs,
Div
iden
ds,
Net
Ass
ets,
and
Mar
ket
valu
e p
er s
har
e an
d s
har
e tr
adin
g is
giv
en o
n
pag
e 60
on
th
e A
nn
ual
Reo
prt
.
Maj
or
Sh
areh
old
ers
Det
ails
of
the
top
tw
enty
Sh
areh
old
ers
of
the
com
pan
y
and
th
e p
erce
nta
ges
hel
d b
y ea
ch o
f th
em a
re d
iscl
ose
d in
the
pag
e 59
on
th
is r
epo
rt.
Em
plo
ymen
tIt
is
the
gro
up
po
licy
to
pra
ctic
e eq
ual
ity
of
op
po
rtu
nit
y fo
r al
l em
plo
yees
. Th
e gr
ou
p
con
tin
uo
usl
y in
vest
s in
tr
ain
ing
and
dev
elo
pm
ent
of
staff
in
ord
er t
o m
ain
tain
a
ded
icat
ed a
nd
hig
hly
mo
tiva
ted
tea
m t
o a
chie
ve s
ervi
ce
exce
llen
ce.
Dir
ecto
rsTh
e fo
llo
win
g w
ere
Dir
ecto
rs o
f th
e C
om
pan
y as
at
31st
D
ecem
ber
201
11.
M
r. T
So
mes
war
an2.
M
r. U
Gau
tam
3.
Mr.
M S
I P
eiri
s4.
M
r. R
S W
Sen
anay
ake
5.
Mr.
G C
B R
anas
ingh
e6.
M
r. J
C K
ora
le7.
D
r. T
Sen
thil
verl
New
Ap
po
intm
ents
Mr.
T
. So
mes
war
an
wh
o
was
an
In
dep
end
ent
No
n
Exe
cuti
ve D
irec
tor,
was
ap
po
inte
d a
s th
e C
hai
rman
of
SMB
Lea
sin
g P
LC
on
27t
h J
uly
201
1.
Mr.
U.
Gau
tam
wh
o w
as a
No
n E
xecu
tive
Dir
ecto
r o
f SM
B L
easi
ng
PL
C w
as a
pp
oin
ted
to
th
e p
ost
of
Dep
uty
C
hai
rman
on
17t
h A
ugu
st 2
011.
Ret
irem
ent
of
Dir
ecto
rsIn
ter
ms
of
Art
icle
87
of
the
Art
icle
s o
f A
sso
ciat
ion
of
the
Co
mp
any
Mr.
G C
B R
anas
ingh
e re
tire
s an
d b
een
eli
gib
le
to o
ffer
him
self
fo
r re
-ele
ctio
n.
Dir
ecto
rs S
har
eho
ldin
gsTh
e sh
areh
old
ings
of
the
Dir
ecto
rs o
f th
e C
om
pan
y ar
e sh
ow
n o
n p
age
61 u
nd
er S
har
eho
lder
s' I
nfo
rmat
ion
.
Dir
ecto
rs I
nte
rest
in
Sh
ares
an
d D
eben
ture
sD
irec
tors
in
tere
st
in
Shar
es
and
D
eben
ture
s o
f th
e C
om
pan
y as
at
31st
Dec
emb
er 2
011
are
as d
iscl
ose
d o
n
pag
e 61
of
the
An
nu
al R
epo
rt.
Dir
ecto
rs I
nte
rest
in
Co
ntr
acts
The
Dir
ecto
rs o
f th
e C
om
pan
y h
ave
no
dir
ect
or
ind
irec
t in
tere
st
in
any
con
trac
t o
r p
rop
ose
d
con
trac
t o
f th
e co
mp
any,
ex
cep
t th
ose
sp
ecifi
ed
in
No
te
33
to
the
Fin
anci
al
Stat
emen
ts,
wh
ich
h
ave
bee
n
dis
clo
sed
an
d
dec
lare
d a
t m
eeti
ngs
of
the
Dir
ecto
rs.
Inte
rest
Reg
iste
rTh
e D
irec
tors
' In
tere
st
regi
ster
is
m
ain
tain
ed
by
the
Co
mp
any
and
re
leva
nt
dis
clo
sure
s ar
e m
ade
in
this
re
po
rt.
Con
tin
ued
24
AN
NU
AL
RE
PO
RT
OF
TH
E B
OA
RD
OF
DIR
EC
TO
RS
ON
TH
E A
FFA
IRS
OF
TH
E C
OM
PAN
Y
Bo
ard
Su
b C
om
mit
tee
Au
dit
Co
mm
itte
e
The
foll
ow
ing
Dir
ecto
rs s
erve
on
th
e B
oar
d o
f th
e A
ud
it
Co
mm
itte
e.
Mr.
T S
om
esw
aran
Mr.
J C
Ko
rale
Mr.
G C
B R
anas
ingh
e
Hea
d
of
Fin
ance
, th
e In
tern
al
Au
dit
ors
an
d
Ext
ern
al
Au
dit
ors
an
d
the
Secr
etar
ies
of
the
Co
mp
any
atte
nd
mee
tin
gs b
y in
vita
tio
n.
Sta
tuto
ry P
aym
ents
The
dir
ecto
rs c
on
firm
th
at t
o t
he
bes
t o
f th
eir
kn
ow
led
ge,
all
taxe
s, d
uti
es a
nd
lev
ies
pay
able
by
the
Co
mp
any
and
its
sub
sid
iary
, al
l co
ntr
ibu
tio
ns,
lev
ies
and
tax
es p
ayab
le
on
beh
alf
of
and
in
res
pec
t o
f th
e em
plo
yees
an
d a
ll
kn
ow
n s
tatu
tory
du
es a
s at
th
e b
alan
ce s
hee
t d
ate
hav
e
bee
n
pai
d
or
wh
ere
rele
van
t,
pro
vid
ed
for
by
the
Co
mp
any
and
its
sub
sid
iary
.
En
viro
nm
enta
l P
rote
ctio
n
The
Bo
ard
of
Dir
ecto
rs t
o t
he
bes
t o
f th
eir
abil
ity
take
s
ever
y at
tem
pt
to c
om
ply
wit
h r
elev
ant
envi
ron
men
tal
law
s,
regu
lati
on
s an
d
bes
t p
ract
ices
ap
pli
cab
le
in
the
cou
ntr
y.
Dir
ecto
rs R
esp
on
sib
ilit
y fo
r F
inan
cial
Rep
ort
ing
The
Dir
ecto
rs a
re r
esp
on
sib
le f
or
the
pre
par
atio
n o
f th
e
Fin
anci
al S
tate
men
ts o
f th
e co
mp
any
to r
eflec
t th
e tr
ue
and
fai
r vi
ew o
f th
e st
ate
of
its
affai
rs. Th
e D
irec
tors
are
of
the
view
th
at
thes
e F
inan
cial
St
atem
ents
h
ave
bee
n
pre
par
ed
in
con
form
ity
wit
h
the
req
uir
emen
ts
of
Sri
Lan
ka
Acc
ou
nti
ng
Stan
dar
ds
and
Co
mp
anie
s A
ct N
o. 0
7
of 2
007,
th
erea
fter
, Fin
ance
Lea
sin
g (A
men
dm
ent)
No.
24
of
2005
an
d
Lis
tin
g ru
les
of
th
e C
olo
mb
o
Sto
ck
Exc
han
ge.
Co
rpo
rate
Go
vern
ance
The
Bo
ard
of
Dir
ecto
rs i
s o
f th
e vi
ew t
hat
it
has
fo
cuse
d
on
th
e n
eces
sary
res
ou
rces
an
d p
roce
sses
to
en
sure
th
at
the
com
pan
y is
co
mp
lian
t w
ith
th
e co
de
of
bes
t p
ract
ices
of
Co
rpo
rate
G
ove
rnan
ce
issu
ed
by
the
Inst
itu
te
of
Ch
arte
red
Acc
ou
nta
nts
of
Sri
Lan
ka
thro
ugh
ou
t th
e ye
ar
end
ed 3
1st
Dec
emb
er 2
011.
The
Co
rpo
rate
Go
vern
ance
rep
ort
is
give
n o
n p
ages
18
to 2
0 o
f th
e A
nn
ual
Rep
ort
.
25
Ris
k M
anag
emen
t
The
step
s ta
ken
by
th
e C
om
pan
y in
re
spec
t o
f b
oth
fin
anci
al a
nd
op
erat
ion
al r
isk
s h
ave
bee
n s
et o
ut
in t
he
pag
e 17
to
th
is r
epo
rt.
Go
ing
Co
nce
rn
The
Dir
ecto
rs
are
of
the
view
th
at
the
com
pan
y h
as
adeq
uat
e re
sou
rces
to
co
nti
nu
e th
e C
om
pan
y's
op
erat
ion
s in
th
e fo
rese
able
fu
ture
. Th
e F
inan
cial
Stat
emen
ts
are
pre
par
ed
bas
ed
on
a
goin
g co
nce
rn
con
cep
t.
Lo
an C
apit
al
The
Co
mp
any
has
fr
om
ti
me
to
tim
e is
sued
qu
ote
d/u
nq
uo
ted
, u
nse
cure
d,
sub
ord
inat
ed,
red
eem
able
deb
entu
res
to
mo
bil
ize
fun
ds
to
be
use
d
in
the
dis
bu
rsem
ent
of
leas
e an
d lo
an f
acil
itie
s.
Po
st B
alan
ce S
hee
t E
ven
ts
Eve
nts
th
at h
ave
occ
urr
ed a
fter
th
e B
alan
ce S
hee
t d
ate
hav
e b
een
d
iscl
ose
d
in
No
te
31
of
the
Fin
anci
al
Stat
emen
ts.
Au
dit
ors
The
reti
rin
g au
dit
ors
M
/s.
KP
MG
, C
har
tere
d
Acc
ou
nta
nts
hav
e si
gnifi
ed t
hei
r w
illi
ngn
ess
to c
on
tin
ue
in o
ffice
an
d r
eso
luti
on
to
re-
app
oin
t th
em a
s A
ud
ito
rs
and
au
tho
rizi
ng
the
Dir
ecto
rs t
o fi
x th
eir
rem
un
erat
ion
wil
l b
e p
rop
ose
d a
t th
e A
nn
ual
Gen
eral
Mee
tin
g. A
ud
it
fee
is d
iscl
ose
d o
n N
ote
8 o
f th
e F
inan
cial
Sta
tem
ents
on
pag
e 38
. Th
e A
ud
ito
rs h
ave
con
firm
ed t
hat
th
ey d
o n
ot
hav
e an
y re
lati
on
ship
wit
h,
or
inte
rest
s in
th
e co
mp
any
oth
er t
han
th
ose
dis
clo
sed
ab
ove
.
This
rep
ort
is
sign
ed f
or
and
on
beh
alf
of
the
Bo
ard
of
Dir
ecto
rs b
y
M.S
.I. P
eiri
s
Exe
cuti
ve D
irec
tor
(sgd
)
S S
P C
orp
ora
te S
ervi
ces
(Pvt
) L
td
Co
mp
any
Sec
reta
ries
30th
May
201
2
Co
lom
bo
DIR
EC
TO
RS
RE
SPO
NSI
BIL
ITY
ST
AT
EM
EN
T
26
The
Fin
anci
al S
tate
men
ts o
f th
e C
om
pan
y an
d G
rou
p f
or
the
year
en
ded
31s
t D
ecem
ber
201
1 ar
e p
rep
ared
an
d p
rese
nte
d
in c
om
pli
ance
wit
h t
he
Sri
Lan
ka
Acc
ou
nti
ng
Stan
dar
ds
Act
No.
15
of
1995
iss
ued
by
the
Inst
itu
te o
f C
har
tere
d
Acc
ou
nta
nts
of
Sri
Lan
ka
and
req
uir
emen
ts o
f th
e C
om
pan
ies
Act
No.
07
of
2007
.
The
Bo
ard
acc
epts
res
po
nsi
bil
ity
for
the
inte
rgri
ty a
nd
ob
ject
ivit
y o
f th
e F
inan
cial
Sta
tem
ents
pre
sen
ted
. The
Dir
ecto
rs a
re
also
of
the
view
th
at,
in p
rep
arin
g th
ese
Fin
anci
al S
tate
men
ts a
pp
rop
riat
e ac
cou
nti
ng
po
lici
es a
nd
pra
ctic
es h
ave
bee
n
ado
pte
d c
on
sist
entl
y to
geth
er w
ith
rel
evan
t Sr
i L
ank
a A
cco
un
tin
g St
and
ard
s an
d D
irec
tio
ns
issu
ed b
y th
e ex
tern
al
regu
lari
ty a
uth
ori
ties
.
The
Bo
ard
of
Dir
ecto
rs i
s re
spo
nsi
ble
fo
r ta
kin
g re
aso
nab
le a
ssu
ran
ce o
f ap
pro
pri
ate
inte
rnal
co
ntr
ol
syst
ems
and
acco
un
tin
g re
cord
s w
hic
h e
nsu
res
that
th
e C
om
pan
y's
bu
sin
ess
is c
arri
ed o
n in
an
acc
epta
ble
an
d e
ffici
ent
man
ner
so
as
to
safe
guar
d t
he
Co
mp
any'
s as
sets
, an
d p
reve
nti
ng
and
det
ecti
ng
frau
ds
as w
ell
as o
ther
irr
egu
lari
ties
, w
hic
h i
s re
view
ed,
eval
uat
ed a
nd
up
dat
ed o
n a
go
ing
con
cern
bas
is.
This
sta
tem
ent
is s
ign
ed f
or
and
on
beh
alf
of
the
Bo
ard
of
Dir
ecto
rs b
y
M. S
. I. P
eiri
s
Exe
cuti
ve D
irec
tor
30th
May
201
2
IND
EP
EN
DE
NT
AU
DIT
OR
S’ R
EP
OR
T
27
TO
TH
E S
HA
RE
HO
LD
ER
S O
F S
MB
LE
ASI
NG
PL
C
Rep
ort
on
th
e F
inan
cial
Sta
tem
ents
We
hav
e au
dit
ed t
he
acco
mp
anyi
ng
fin
anci
al s
tate
men
ts o
f SM
B L
easi
ng
PL
C,
the
con
soli
dat
ed fi
nan
cial
stat
emen
ts o
f th
e co
mp
any
and
its
sub
sid
iary
as
at 3
1st
Dec
emb
er 2
011,
wh
ich
co
mp
rise
th
e b
alan
ce s
hee
t as
at
31st
Dec
emb
er 2
011,
an
d t
he
inco
me
stat
emen
t, s
tate
men
t o
f ch
ange
s in
eq
uit
y an
d c
ash
flo
w s
tate
men
t fo
r th
e
year
th
en e
nd
ed,
and
su
mm
ary
of
sign
ifica
nt
acco
un
tin
g p
oli
cies
an
d o
ther
exp
lan
ato
ry n
ote
s as
set
ou
t o
n
pag
es 2
9 to
55.
Man
agem
ent’s
Res
pons
ibili
ty fo
r the
Fin
anci
al S
tate
men
ts
Man
agem
ent i
s re
spo
nsi
ble
for
the
pre
par
atio
n a
nd
fair
pre
sen
tati
on
of t
hes
e fi
nan
cial
sta
tem
ents
in a
cco
rdan
ce
wit
h S
ri L
ank
a A
cco
un
tin
g St
and
ard
s. Th
is r
esp
on
sib
ilit
y in
clu
des
: des
ign
ing,
im
ple
men
tin
g an
d m
ain
tain
ing
inte
rnal
co
ntr
ol
rele
van
t to
th
e p
rep
arat
ion
an
d f
air
pre
sen
tati
on
of
fin
anci
al s
tate
men
ts t
hat
are
fre
e fr
om
mat
eria
l m
isst
atem
ent,
wh
eth
er d
ue
to f
rau
d o
r er
ror;
sel
ecti
ng
and
ap
ply
ing
app
rop
riat
e ac
cou
nti
ng
po
lici
es;
and
mak
ing
acco
un
tin
g es
tim
ates
th
at a
re r
easo
nab
le i
n t
he
circ
um
stan
ces.
Scop
e of A
udit
and
Basis
of O
pini
on
Ou
r re
spo
nsi
bil
ity
is t
o e
xpre
ss a
n o
pin
ion
on
th
ese
fin
anci
al s
tate
men
ts b
ased
on
ou
r au
dit
. We
con
du
cted
ou
r
aud
it i
n a
cco
rdan
ce w
ith
Sri
Lan
ka
Au
dit
ing
Stan
dar
ds.
Tho
se s
tan
dar
ds
req
uir
e th
at w
e p
lan
an
d p
erfo
rm t
he
aud
it t
o o
bta
in r
easo
nab
le a
ssu
ran
ce w
het
her
th
e fi
nan
cial
sta
tem
ents
are
fre
e fr
om
mat
eria
l mis
stat
emen
t.
An
au
dit
in
clu
des
exa
min
ing,
on
a t
est
bas
is, e
vid
ence
su
pp
ort
ing
the
amo
un
ts a
nd
dis
clo
sure
s in
th
e fi
nan
cial
stat
emen
ts.
An
au
dit
als
o i
ncl
ud
es a
sses
sin
g th
e ac
cou
nti
ng
po
lici
es u
sed
an
d s
ign
ifica
nt
esti
mat
es m
ade
by
man
agem
ent,
as
wel
l as
eval
uat
ing
the
ove
rall
fin
anci
al s
tate
men
t p
rese
nta
tio
n.
We
hav
e o
bta
ined
all
th
e in
form
atio
n a
nd
exp
lan
atio
ns
wh
ich
to
th
e b
est
of
ou
r k
no
wle
dge
an
d b
elie
f w
ere
nec
essa
ry f
or
the
pu
rpo
ses
of
ou
r au
dit
. We
ther
efo
re b
elie
ve t
hat
ou
r au
dit
pro
vid
es a
rea
son
able
bas
is f
or
ou
r
op
inio
n.
28
IND
EP
EN
DE
NT
AU
DIT
OR
S’ R
EP
OR
TC
onti
nu
ed
Opi
nion
- Co
mpa
ny
In o
ur
op
inio
n,
so f
ar a
pp
ears
fro
m o
ur
exam
inat
ion
, th
e C
om
pan
y m
ain
tain
ed p
rop
er a
cco
un
tin
g re
cord
s fo
r th
e ye
ar
end
ed 3
1st
Dec
emb
er 2
011
and
th
e fi
nan
cial
sta
tem
ents
giv
e a
tru
e an
d f
air
view
of
the
Co
mp
any’
s st
ate
of
affai
rs a
s at
31s
t
Dec
emb
er 2
011
and
its
loss
an
d c
ash
flo
w f
or
the
year
th
en e
nd
ed i
n a
cco
rdan
ce w
ith
Sri
Lan
ka
Acc
ou
nti
ng
Stan
dar
ds.
Opi
nion
– G
roup
The
gro
up
has
rec
ogn
ized
an
am
ou
nt
of
Rs.
4,4
46,4
30 a
s th
e sh
are
of
pro
fit
of
SMB
Rea
l E
stat
e L
imit
ed,
an a
sso
ciat
e
com
pan
y o
f th
e gr
ou
p, a
s p
er e
qu
ity
met
ho
d o
f ac
cou
nti
ng
for
the
pre
par
atio
n o
f co
nso
lid
ated
fin
anci
al s
tate
men
ts f
or
the
year
en
ded
31s
t D
ecem
ber
201
1, b
ased
on
un
aud
ited
fin
anci
al s
tate
men
ts o
f th
e as
soci
ate
com
pan
y fo
r th
e sa
me
year
.
In o
ur
op
inio
n,
so f
ar a
s ap
pea
rs f
rom
ou
r ex
amin
atio
n,
exce
pt
for
the
effec
ts o
n t
he
fin
anci
al s
tate
men
ts o
f th
e m
atte
r
refe
rred
to
in
pre
ced
ing
par
agra
ph
, th
e gr
ou
p m
ain
tain
ed p
rop
er a
cco
un
tin
g re
cord
s fo
r th
e ye
ar e
nd
ed 3
1st
Dec
emb
er
2011
an
d t
he
con
soli
dat
ed fi
nan
cial
sta
tem
ents
giv
e a
tru
e an
d f
air
view
of
the
stat
e o
f aff
airs
as
at 3
1st
Dec
emb
er 2
011
and
the
loss
an
d c
ash
flo
ws
for
the
year
th
en e
nd
ed, i
n a
cco
rdan
ce w
ith
Sri
Lan
ka
Acc
ou
nti
ng
Stan
dar
ds,
of
the
Co
mp
any
and
its
sub
sid
iary
dea
lt w
ith
th
ereb
y, s
o f
ar a
s co
nce
rns
the
shar
eho
lder
s o
f th
e C
om
pan
y.
Repo
rt o
n O
ther
Leg
al a
nd R
egul
ator
y Req
uire
men
ts
Thes
e fi
nan
cial
sta
tem
ents
als
o c
om
ply
wit
h t
he
req
uir
emen
ts o
f Se
ctio
n 1
53(2
) to
153
(7)
of
the
Co
mp
anie
s A
ct N
o. 0
7 o
f
2007
.
Ch
arte
red
Acc
ou
nta
nts
30th
May
201
2
Co
lom
bo
Fo
r th
e Y
ear
En
ded
31
Dec
emb
er2
01
1
Rs.
20
11
Rs.
No
tes
Gro
ss I
nco
me
Inte
rest
In
com
e
Inte
rest
Exp
ense
s
Net
In
tere
st I
nco
me
Oth
er I
nco
me
Les
s: O
per
atin
g E
xpen
ses
Les
s: V
alu
e A
dd
ed T
ax o
n F
inan
cial
Ser
vice
s
Pro
fit/
(Lo
ss)
bef
ore
Tax
Shar
e o
f P
rofi
ts o
f A
sso
ciat
e C
om
pan
ies
Inco
me
Tax
Pro
fit/
(Lo
ss)
for
the
Per
iod
Att
rib
uta
ble
to
:
Eq
uit
y h
old
ers
of
the
Par
ent
Co
mp
any
Min
ori
ty I
nte
rest
Bas
ic E
arn
ings
/(L
oss
) P
er S
har
e
The
No
tes
on
pag
es 3
3 to
55
form
an
in
tegr
al p
art
of
thes
e fi
nan
cial
sta
tem
ents
.F
igu
res
in b
rack
ets
ind
icat
e d
edu
ctio
ns
4 5 6 7 8
10 11
20
10
Rs.
20
10
Rs.
CO
MPA
NY
GR
OU
P
INC
OM
E S
TA
TE
ME
NT 14
1,0
00
,43
8
102,
228,
741
(64
,732
,497
)
37
,49
6,2
44
38,7
71,6
97
76,2
67,9
41
(61
,745
,705
)
14,6
78,1
61
30
,49
9,1
28
(2,
832,
112)
(3,
184,
151)
27
,31
4,9
77
27,1
17,5
58
197,
419
27
,31
4,9
77
0.03
(0.0
3)
Per
son
nel
Co
sts
(31
,568
,860
) (
23,9
63,5
79)
Pre
mis
es, E
qu
ipm
ent
& E
stab
lish
men
t E
xpen
ses
(20
,628
,076
) (
12,9
90,3
73)
Oth
er O
per
atin
g E
xpen
ses
(40
,866
,828
) (
38,0
21,2
72)
(39
,934
,546
) -
Pro
visi
on
/Rev
ersa
l fo
r L
oan
Lo
sses
931
,318
,059
31,3
18,0
59
Pro
visi
on f
or f
all i
n v
alu
e o
f In
vest
men
t in
Ass
oci
ate
Co
mp
anie
s -
-
16
,61
0,7
84
(2,
832,
112)
(2,
515,
284)
14
,09
5,5
00
14,0
95,5
00 -
14
,09
5,5
00
0.02
Pro
fit/
(Lo
ss)
fro
m O
per
atio
ns
12
4,1
09
,94
0
101,
717,
870
(64
,732
,498
)
36
,98
5,3
72
22,3
92,0
70
59,3
77,4
42
14,5
22,2
3619
,442
,896
19
13
0,5
03
,58
6
71,4
46,8
73
(47
,608
,969
)
23
,83
7,9
04
59,0
56,7
13
82.8
94,6
17
(44
,505
,179
)
(21
,948
,810
)
(34
,505
,951
)
(24
,839
,263
)
(12
5,86
2,15
1)
(42
,967
,534
)
(3
2,2
26
,50
3)
(3,
937,
130)
(3,
629,
014)
(3
5,8
55
,51
7)
(35,
277,
199)
(57
8,31
8)
(3
5,8
55
,51
7)
10
7,9
37
,67
7
70,6
64,2
62
(47
,608
,969
)
23
,05
5,2
93
37,2
73,4
15
60,3
28,7
08
(31
,813
,732
)
(11
,106
,838
)
(28
,024
,038
)
(24
,839
,263
)
(95
,846
,819
)
(35
,518
,111
)
(3
9,4
55
,24
1)
(3,
937,
130)
(42
,602
,939
)
(42
,60
2,9
39
)
(3,1
47,6
98)
(4
2,6
02
,93
9)
(3,
720,
958)
18,8
09,0
04
(0.0
3)
29
(3,
720,
958)
Rev
ersa
l of
pro
visi
on f
or
fall
in
val
ue
of
Inve
stm
ent
Secu
riti
es -
3,
722,
619
3,6
58,0
10 3
,658
,010 -
It is
cer
tified
that
the
Fina
ncia
l Sta
tem
ents
hav
e be
en p
repa
red
in c
ompl
ianc
e w
ith th
e re
quir
emen
ts o
f th
e C
ompa
nies
Act
No.
7 o
f 200
7.
P. W
. K. R
osh
anH
ead
of
Fin
ance
The
Bo
ard
of
Dir
ecto
rs a
re r
esp
on
sib
le f
or
the
pre
par
atio
n a
nd
pre
sen
tati
on
of
thes
e F
inan
cial
sta
tem
ents
.A
pp
rove
d a
nd
sig
ned
on
beh
alf
of
the
Bo
ard
U. G
auta
mD
epu
ty C
hai
rman
30th
May
201
2 C
olo
mb
o
The
No
tes
on
pag
es 3
3 to
55
form
an
in
tegr
al p
art
of
thes
e fi
nan
cial
sta
tem
ents
.F
igu
res
in b
rack
ets
ind
icat
e d
edu
ctio
ns
M. S
. I. P
eiri
sE
xecu
tive
Dir
ecto
r
BA
LA
NC
E S
HE
ET
As
at 3
1 D
ecem
ber
No
tes
AS
SET
SC
ash
in h
and
& B
alan
ces
in B
anks
12Tr
easu
ry B
ills
and
Bon
ds E
ligib
le fo
r R
edis
coun
ting
wit
h C
entr
al B
ank
Pla
cem
ents
wit
h an
d lo
ans
to o
ther
Ban
ks a
ndFi
nanc
e C
ompa
nies
14
Inve
stm
ent S
ecur
itie
s15
Loan
s an
d A
dvan
ces
16Le
ase
Ren
tals
Rec
eiva
ble
wit
hin
1 ye
ar17
aLe
ase
Ren
tals
Rec
eiva
ble
from
1 to
5 y
ears
17b
Leas
e R
enta
ls R
ecei
vabl
e A
fter
5 y
ears
17c
Inve
stm
ents
in S
ubsi
diar
y C
ompa
nies
18In
vest
men
ts in
Ass
ocia
te C
ompa
nies
19In
vest
men
t P
rope
rtie
s20
Pro
pert
y P
lant
& E
quip
men
t21
Oth
er A
sset
s22
Def
erre
d Ta
x A
sset
s23
Tota
l Ass
ets
300,
580,
666
1,30
0,00
0
73,1
79,8
81
6,23
8,69
535
5,90
1,49
4 99
,203
,745
59
,609
,800
5,
306,
992 -
15
3,54
2,87
2 37
,320
,400
10
,819
,571
34
,190
,512
221,
670
1,13
7,41
6,29
8
297,
843,
372 -
67,8
30,0
09
2,65
0,46
7 3
59,2
01,4
94
99,0
22,4
18
59,6
09,8
00
5,30
6,99
2 12
,750
,000
12
9,28
2,19
6 33
,120
,400
9,24
4,32
6 30
,969
,187 -
1,10
6,83
0,66
1
EQ
UIT
Y A
ND
LIA
BIL
ITIE
SL
IAB
ILIT
IES
Tota
l Lia
bili
ties
Bor
row
ings
24O
ther
Lia
bilit
ies
25D
eben
ture
s26
Ban
k O
ver
Dra
ft12
EQ
UIT
Y
Stat
ed C
apit
al27
Stat
utor
y R
eser
ve29
Inve
stm
ent F
und
Res
erve
Tota
l equ
ity
attr
ibu
tabl
e to
equ
ity
hol
der
s of
the
Com
pan
y
Min
orit
y In
tere
stTo
tal E
quit
y
Tota
l Lia
bili
ties
& E
quit
y
Net
Ass
ets
per
Ord
inar
y Sh
are
(Rs.
)C
omm
itm
ents
& C
onti
ngen
cies
3013
408,
336,
075
2,20
0,00
0
78,2
43,2
13
9,77
6,36
0 27
4,05
5,10
4 13
8,91
2,10
6 22
5,12
1,72
2 5,
306,
992 -
15
8,42
5,07
540
,173
,277
14,3
47,5
1139
,119
,224
157,
448
1,39
4,17
4,10
7
248,
081,
994
98,2
43,1
97
109,
193,
093
50,0
84,6
78
505,
602,
962
510,
530,
975
9,85
7,88
5 1,
565,
729
880,
913,
440
7,65
7,70
5
888,
571,
145
1,39
4,17
4,10
7
0.63
1
,500
,000
407,
992,
144 -
72,7
13,7
706,
308,
477
277,
115,
104
138,
912,
106
225,
121,
722
5,30
6,99
212
,750
,000
125,
561,
238
33,1
20,4
0013
,204
,585
36,1
65,3
98
1,35
4,27
1,93
6
248,
081,
994
94,5
94,0
8210
9,19
3,09
350
,084
,678
501,
953,
847
510,
530,
975
9,85
7,88
51,
565,
729
Acc
umul
ated
Los
ses
(15
,607
,588
)(4
4,20
2,93
9)
852,
318,
089 -
852,
318,
089
1,35
4,27
1,93
6
0.61
1,
500,
000
20
11
Rs.
20
11
Rs.
20
10
Rs.
20
10
Rs.
CO
MPA
NY
GR
OU
P
30
Shar
e A
pplic
atio
n M
oney
2837
4,56
6,43
9 37
4,56
6,43
9
STA
TE
ME
NT
S O
F C
HA
NG
ES
IN
EQ
UIT
Y
GR
OU
P
Stat
edC
apit
alSh
are A
pplic
atio
nM
oney
Stat
utor
yR
eser
ve F
un
dIn
vest
men
tFu
nd R
eser
veA
ccu
mu
late
dL
osse
s To
tal
Min
orit
yIn
tere
st
Tota
lE
quit
yR
s.
Rs.
R
s.
Rs.
R
s.
Rs.
R
s.
As
at 0
1.01
.201
056
5,78
6,04
5 -
1,23
9,77
7 -
(6
29,3
06,5
23)
(62
,280
,701
)8,
038,
602
(54
,242
,099
)
Shar
es is
sued
dur
ing
the
peri
od58
1,16
4,25
1 -
-
-
-
58
1,16
4,25
1 58
1,16
4,25
1
Dir
ect c
ost o
f sha
re is
sue
-
-
-
(4,
540,
055)
(4,
540,
055)
-
(4,
540,
055)
Net
Pro
fit a
ttri
buta
ble
to S
hare
hold
ers
-
-
-
-
27,3
14,9
76
27,3
14,9
76
197,
421
27,5
12,3
97
As
at 3
1.12
.201
01,
146,
950,
296
- 9,
857,
885
-
(615
,149
,710
)54
1,65
8,47
1 8,
236,
023
549,
894,
494
As
at 0
1.01
.201
11,
146,
950,
296
- 9,
857,
885
-
(615
,149
,710
)54
1,65
8,47
1 8,
236,
023
549,
894,
494
Shar
e A
pplic
atio
ns r
ecei
ved
duri
ng th
e ye
ar (
War
rant
Issu
e)-
374
,566
,439
-
-
-
374,
566,
439
-
374,
566,
439
Dir
ect c
ost o
f sha
re is
sue
-
-
-
-
(1,6
00,0
00)
(1,
600,
000)
(1,6
00,0
00)
Cap
ital
red
ucti
ondu
ring
the
year
(63
6,41
9,32
1) -
-
-
63
6,41
9,32
1 -
-
Net
Los
s at
trib
utab
leSh
areh
olde
rs -
-
-
-
(
35,2
77,1
99)
(35
,277
,199
) (
578,
318)
(35
,855
,517
)
Tran
sfer
to s
tatu
tory
res
erve
fund
-
-
-
1,56
5,72
9 -
1,
565,
729
1,56
5,72
9
Tran
sfer
to s
tatu
tory
rese
rve
fund
-
-
8,61
8,10
8 -
(8,
618,
108)
- -
As
at 3
1.12
.201
151
0,53
0,97
5 37
4,56
6,43
99,
857,
885
1,56
5,72
9 (
15,6
07,5
88)
880,
913,
440
7,65
7,70
588
8,57
1,14
5
Rs.
CO
MPA
NY
Stat
edC
apit
alSt
atut
ory
Res
erve
Fu
nd
Inve
stm
ent
Fund
Res
erve
A
ccu
mu
late
dL
osse
s To
tal
Equ
ity
Rs.
R
s.
Rs.
R
s.
Rs.
As
at 0
1.01
.201
056
5,78
6,04
5 1,
239,
777
-
(637
,356
,658
) (
70,3
30,8
36)
Shar
es is
sued
dur
ing
the
year
(W
arra
nt Is
sue)
58
1,16
4,25
1 -
-
-
58
1,16
4,25
1
Dir
ect c
ost o
f sha
re is
sue
-
-
-
(4,
540,
055)
(4,
540,
055)
Net
Pro
fit a
ttri
buta
ble
Shar
ehol
ders
-
-
-
14,0
95,5
00
14,0
95,5
00
Tran
sfer
to s
tatu
tory
res
erve
fund
8,61
8,10
8 -
(
8,61
8,10
8) -
As
at 3
1.12
.201
01,
146,
950,
296
9,85
7,88
5 -
(6
36,4
19,3
21)
520,
388,
860
As
at 0
1.01
.201
11,
146,
950,
296
9,85
7,88
5 -
(6
36,4
19,3
21)
520,
388,
860
Shar
e A
pplic
atio
ns r
ecei
ved
duri
ng th
e ye
ar(W
arra
nts)
- -
-
-
37
4,56
6,43
9
Dir
ect c
ost o
f sha
re is
sue
-
-
-
(1,6
00,0
00)
(1,6
00,0
00)
Cap
ital
red
ucti
on d
urin
g th
e ye
ar (
636,
419,
321)
-
-
636,
419,
321
-
Net
Los
s at
trib
utab
le S
hare
hold
ers
-
-
-
(42
,602
,939
) (
42,6
02,9
39)
Tran
sfer
to in
vest
men
t fun
d ac
coun
t -
-
1,
565,
729
-
1,56
5,72
9
As
at 3
1.12
.201
151
0,53
0,97
59,
857,
885
1,56
5,72
9 (
44,2
02,9
39)
852,
318,
089
-
Shar
e App
licat
ion
Mon
ey
Rs.
- -
-
- - -
374
,566
,439 -
-
-
-
374,
566,
439-
31
The
No
tes
on
pag
es 3
3 to
55
form
an
in
tegr
al p
art
of
thes
e fi
nan
cial
sta
tem
ents
.F
igu
res
in b
rack
ets
ind
icat
e d
edu
ctio
ns
Att
ribu
tabl
e to
th
e E
quit
y H
old
ers
of t
he
Par
ent
Com
pan
y
-
-
-
Inte
rest
Rec
eive
d
Inte
rest
Pay
men
ts
Fee
s an
d C
om
mis
sio
n R
ecei
pts
Cas
h P
aym
ents
to
Em
plo
yees
an
d S
up
pli
ers
Net
Lo
ss b
efo
re C
han
ges
in O
per
atin
g A
sset
s /
Lia
bil
itie
s
Fu
nd
s A
dva
nce
d t
o C
ust
om
ers
Oth
er A
sset
s
Cas
h G
ener
ated
fro
m /
(u
sed
in
) O
per
atio
ns
Tax
Pai
d
Gra
tuit
y P
aid
Net
Cas
h g
ener
ated
fro
m /
(u
sed
in
) O
per
atin
g A
ctiv
itie
s
Cas
h F
low
fro
m I
nve
stin
g A
ctiv
itie
s
Div
iden
d R
ecei
ved
fro
m A
sso
ciat
e C
om
pan
ies
Pro
ceed
s fr
om
Sal
e o
f D
eali
ng
Secu
riti
es
Pu
rch
ase
of
Inve
stm
ent
Secu
riti
es
Pro
ceed
s fr
om
Sal
e o
f In
vest
men
t Se
curi
ties
Pu
rch
ase
of
Pro
per
ty, P
lan
t &
Eq
uip
men
t
Pro
ceed
s fr
om D
isp
osa
l of
Pro
per
ty, P
lan
t &
Equ
ipm
ent
Net
Cas
h g
ener
ated
fro
m I
nve
stin
g A
ctiv
itie
s
Cas
h F
low
fro
m F
inan
cin
g A
ctiv
itie
s
Dec
reas
e in
Deb
entu
res
Incr
ease
in
Lia
bil
itie
s
Dec
reas
e in
Oth
er B
orr
ow
ings
Pro
ceed
s fr
om
Exe
rcis
e o
f W
arra
nts
Net
Cas
h g
ener
ated
fro
m /
(u
sed
in
) F
inan
cin
g A
ctiv
itie
s.
Net
In
crea
se in
Cas
h a
nd
Cas
h E
qu
ival
ents
Cas
h a
nd
Cas
h E
qu
ival
ents
at
the
beg
inn
ing
of
the
year
Cas
h a
nd
Cas
h E
qu
ival
ents
at
the
end
of
the
year
(N
ote
No
. 12
)
Cas
h F
low
fro
m O
per
atin
g A
ctiv
itie
s
CA
SH F
LO
W S
TA
TE
ME
NT
Shar
e is
sue
exp
ense
s p
aid
141,
336,
317
(12
3,87
4,64
3)
17,8
59,9
33
(49
,816
,136
)
(1
4,4
94
,52
9)
267,
146,
728
7,37
1,13
8
26
0,0
23
,33
7
(2,
832,
112)
(65
7,60
0)
25
6,5
33
,62
5
2,94
1,17
6 -
(1,
590,
935)
(1,
057,
129)
19,1
96
31
2,3
08
(11
6,48
5,00
0)
7,83
8,34
4
(46
6,59
8,34
0)
581,
164,
251
(11
,636
,513
)
(5
,71
7,2
58
)
25
1,1
28
,67
5
6,09
1,22
6
25
7,2
19
,90
1
142,
078,
318
(12
3,87
4,64
3)
37,7
71,5
17
(75
,110
,344
)
(1
9,1
35
,15
2)
277,
651,
966
5,34
5,20
7
26
3,8
62
,02
1
(3,
500,
979)
(65
7,60
0)
25
9,7
03
,44
2
1,77
2,82
1 -
(5,
559,
522)
5,90
6,96
0
(1,
978,
098)
19,1
96
16
1,3
57
(11
6,48
5,00
0)
6,55
4,33
6
(46
6,74
8,34
0)
581,
164,
251
(11
,636
,513
)
(7
,15
1,2
66
)
25
2,7
13
,53
3
7,24
3,66
2
25
9,9
57
,19
5
-
Fo
r th
e Y
ear
En
ded
31
Dec
emb
er2
01
1
Rs.
20
11
Rs.
20
10
Rs.
20
10
Rs.
CO
MPA
NY
GR
OU
P
70,3
86,2
19
(55
,696
,223
)
59,8
39,3
25
(91
,684
,036
)
(1
7,1
54
,71
5)
(145
,761
,958
)
(17,
617,
417)
(18
0,5
34
,09
0)
(5,
519,
099)
(2,
649,
963)
(18
,70
3,1
52
)
6,07
5,00
0
4,43
9,93
0
(8,
523,
767)
3,05
2,87
7
(7,
076,
340)
850,
000
(1,1
82
,30
0)
(5,
983,
407)
32,6
01,1
48
(11
1,40
4,52
6)
374,
566,
439
(1,
600,
000)
28
8,1
79
,65
4
98
,29
4,2
02
259,
957,
195
35
8,2
51
,39
7
70,3
86,2
20
(55
,696
,223
)
31,1
98,4
15
(65
,583
,665
)
(1
9,6
95
,25
3)
(145
,761
,958
)
(12,
994,
454)
(17
8,4
51
,66
5)
(5,
519,
099)
(2,
649,
963)
(18
6,6
20
,72
7)
6,07
5,00
0 -
-
(7,
065,
986)
850,
000
(14
0,9
86
)
(5,
983,
407)
31,8
70,7
72
(11
1,40
4,52
6)
374,
566,
439
(1,
600,
000)
28
7,4
49
,27
8
10
0,6
87
,56
5
257,
219,
901
35
7,9
07
,46
6 -
32
The
No
tes
on
pag
es 3
3 to
55
form
an
in
tegr
al p
art
of
thes
e fi
nan
cial
sta
tem
ents
.F
igu
res
in b
rack
ets
ind
icat
e d
edu
ctio
ns
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S
1
RE
PO
RT
ING
EN
TIT
Y
SMB
Le
asin
g P
LC
is
a pu
blic
qu
oted
C
ompa
ny
inco
rpor
ated
&
oper
atin
g in
Sri
Lan
ka. Th
e co
nsol
idat
ed F
inan
cial
Sta
tem
ents
of
the
grou
p fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
11 c
ompr
ises
the
Com
pany
and
its
Subs
idia
ries
and
gro
up in
tere
st in
ass
ocia
te C
ompa
ny.
The
prin
cipa
l act
ivit
ies
of t
he C
ompa
ny a
re p
rovi
ding
Fin
ance
Lea
ses
and
Loan
s.
SMB
Lea
sing
PLC
has
one
sub
sidi
ary
com
pany
and
thr
ee a
ssoc
iate
com
pani
es.
The
prin
cipl
e ac
tivi
ty o
f th
e su
bsid
iary
(SM
B M
oney
Bro
kers
(P
vt)
Ltd)
is
Mon
ey B
roke
ring
. Th
e as
soci
ate
com
pani
es a
re
SMB
Rea
l Est
ate
Ltd,
Ken
anga
Inv
estm
ent
Cor
pora
tion
Ltd
and
SM
B
Secu
riti
es
(Pvt
) Lt
d an
d th
eir
prin
cipl
e ac
tivi
ties
ar
e re
al
esta
te
deve
lopm
ent,
Inve
stm
ent
ban
king
re
late
d ac
tivi
ties
&
pr
ovid
ing
advi
sory
ser
vice
s, a
nd d
ealin
g in
Equ
ity
and
Deb
t in
the
Col
ombo
Stoc
k E
xcha
nge
resp
ecti
vely
.
2 B
ASI
S O
F P
RE
PAR
AT
ION
2.1
Stat
emen
t of C
ompl
ian
ce
The
Fina
ncia
l Sta
tem
ents
are
pre
pare
d in
Sri
Lan
ka R
upee
s, r
ound
ed to
near
est
rupe
e. Th
e B
alan
ce S
heet
, In
com
e St
atem
ent
and
Cas
h Fl
ow
Stat
emen
t of
the
Com
pany
and
the
gro
up u
nles
s ot
herw
ise
stat
ed
here
in a
re p
repa
red
on t
he h
isto
rica
l co
st c
onve
ntio
n in
com
plia
nce
wit
h Sr
i L
anka
Acc
ount
ing
Stan
dard
s pr
escr
ibed
by
the
Inst
itut
e of
Cha
rter
ed A
ccou
ntan
ts o
f Sr
i L
anka
and
in
com
plia
nce
wit
h th
e
requ
irem
ent
of t
he C
ompa
nies
Act
No.
7 o
f 20
07.
Exc
epti
ons
to t
he
hist
oric
cos
t co
nven
tion
of
acco
unti
ng r
elat
e to
dea
ling
secu
riti
es a
nd
inve
stm
ent s
ecur
itie
s as
des
crib
ed in
acc
ount
ing
polic
y 3.
5.3.
3 SI
GN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
The
Com
pany
and
the
Gro
up h
as c
onsi
sten
tly
appl
ied
the
Acc
ount
ing
Polic
ies.
3.1
Bas
is o
f Con
soli
dati
on
The
Gro
up F
inan
cial
Sta
tem
ents
inc
lude
s th
e co
nsol
idat
ed r
esul
ts,
asse
ts a
nd li
abili
ties
of t
he C
ompa
ny a
nd it
s su
bsid
iari
es m
ade
up to
the
finan
cial
yea
r en
d. Th
e re
sults
of
subs
idia
ries
are
inc
lude
d fr
om t
he
date
on
whi
ch t
he C
ompa
ny e
ffec
tive
ly a
cqui
red
cont
rol
of e
ach
subs
idia
ry.
The
inte
rest
of o
utsi
de s
hare
hold
ers
of th
e su
bsid
iari
es in
the
net a
sset
s
and
thei
r pr
opor
tion
of r
esul
ts g
roup
ed s
epar
atel
y in
the
Con
solid
ated
Bal
ance
She
et a
nd I
ncom
e St
atem
ent
unde
r th
e he
adin
g of
“M
inor
ity
Inte
rest
”.
3.1.
1 Su
bsid
iari
es
Subs
idia
ries
are
tho
se e
nter
pris
es c
ontr
olle
d by
the
Com
pany
. Con
trol
exis
ts w
hen
the
Com
pany
has
the
pow
er,
dire
ctly
or
indi
rect
ly,
to
gove
rn t
he fi
nanc
ial
and
oper
atin
g po
licie
s of
an
ente
rpri
se s
o as
to
obta
in
bene
fits
from
it
s ac
tivi
ties
. Th
e Fi
nanc
ial
Stat
emen
ts
of
subs
idia
ries
are
inc
lude
d in
the
Con
solid
ated
Fin
anci
al S
tate
men
ts
from
the
dat
e th
at c
ontr
ol e
ffec
tive
ly c
omm
ence
unt
il th
e da
te t
hat
cont
rol
ceas
es.
The
tota
l Su
bsid
iary
Com
pany
’s pr
ofit
/(lo
ss)
for
the
year
are
inc
lude
d in
the
Con
solid
ated
Inc
ome
Stat
emen
t. Th
e as
sets
and
liabi
litie
s of
the
Subs
idia
ry C
ompa
ny’s
as a
t the
Bal
ance
She
et d
ate
are
incl
uded
in th
e gr
oup
Bal
ance
She
et.
3.1.
2 E
quit
y A
ccou
nted
Inv
este
es
Equ
ity
Acc
ount
ed In
vest
ees
is a
n en
terp
rise
in w
hich
the
Com
pany
has
sign
ifica
nt i
nflue
nce
but
not
cont
rol
over
the
fina
ncia
l an
d op
erat
ing
polic
ies.
The
Con
solid
ated
Fin
anci
al S
tate
men
ts i
nclu
de t
he g
roup
’s
shar
e of
the
tot
al r
ecog
nise
d ga
in a
nd lo
sses
of
the
Equ
ity
Acc
ount
ed
Inve
stee
s, S
MB
Sec
urit
ies
(Pvt
) Lt
d, S
MB
Rea
l Est
ate
Lim
ited
and
SM
B
Ken
enga
Inv
estm
ent
Cor
pora
tion
Ltd
, un
der
the
equi
ty m
etho
d of
acco
unti
ng.
In t
he C
ompa
ny’s
Fina
ncia
l St
atem
ents
, in
vest
men
ts i
n Su
bsid
iary
Com
pany
and
Equ
ity
Acc
ount
ed I
nves
tees
are
acc
ount
ed f
or a
t co
st.
Inco
me
is r
ecog
nise
d to
the
ext
ent
that
div
iden
d is
dec
lare
d fr
om t
he
accu
mul
ated
pro
fit.
3.1.
3 T
ran
sact
ion
s E
lim
inat
ed o
n C
onso
lida
tion
Intr
a-gr
oup
bala
nces
, tr
ansa
ctio
ns a
nd a
ny u
nrea
lized
inc
ome
and
expe
nses
ari
sing
fro
m i
ntra
-gro
up t
rans
acti
ons,
are
elim
inat
ed i
n
prep
arin
g th
e C
onso
lidat
ed F
inan
cial
Sta
tem
ents
. U
nrea
lized
gai
ns
aris
ing
from
tra
nsac
tion
s w
ith
asso
ciat
es a
re e
limin
ated
aga
inst
the
inve
stm
ents
to
the
exte
nt o
f th
e G
roup
’s in
tere
st i
n th
e in
vest
ee.
Unr
ealiz
ed lo
sses
are
elim
inat
ed i
n th
e sa
me
way
as
unre
aliz
ed g
ains
,
but o
nly
to th
e ex
tent
that
ther
e is
no
evid
ence
of i
mpa
irm
ent.
3.2
T
axat
ion
3.2
.1 I
nco
me
Tax
atio
nP
rovi
sio
n f
or
taxa
tio
n i
s b
ased
on
th
e el
emen
ts o
f in
com
e an
d
exp
end
itu
re
as
rep
ort
ed
in
the
Fin
anci
al
Stat
emen
ts
and
com
pu
ted
in
ter
ms
of
the
pro
visi
on
of
Inla
nd
Rev
enu
e A
ct N
o.
10 o
f 20
06 a
nd
am
end
men
ts t
her
eto.
3.2
.2 D
efer
red
Tax
atio
nD
efer
red
ta
x as
sets
an
d
liab
ilit
ies
are
reco
gnis
ed
for
all
tem
po
rary
diff
eren
ces.
Def
erre
d t
ax a
sset
s ar
e re
cogn
ised
fo
r al
l
ded
uct
ible
tem
po
rary
diff
eren
ces,
car
ryin
g fo
rwar
d o
f u
nu
sed
tax
cred
it a
nd
tax
lo
sses
, to
th
e ex
ten
t th
at i
t is
pro
bab
le t
hat
taxa
ble
pro
fit
wil
l b
e av
aila
ble
aga
inst
wh
ich
th
e d
edu
ctib
le
tem
po
rary
diff
eren
ces,
an
d t
he
carr
yin
g fo
rwar
d o
f u
nu
sed
tax
cred
its
and
un
use
d t
ax lo
sses
can
be
uti
lize
d.
The
carr
yin
g am
ou
nt
of
def
erre
d t
ax a
sset
s is
rev
iew
ed a
t ea
ch
Bal
ance
Sh
eets
dat
e an
d r
edu
ced
to t
he
exte
nt
that
it is
no
lon
ger
pro
bab
le t
hat
su
ffici
ent
taxa
ble
pro
fit
wil
l b
e av
aila
ble
to
all
ow
all o
r p
art
of
the
def
erre
d t
ax a
sset
s to
be
uti
lise
d. U
nre
cogn
ised
def
erre
d t
ax a
sset
s ar
e re
asse
ssed
at
each
Bal
ance
Sh
eet
dat
e an
d
are
reco
gniz
ed t
o t
he
exte
nt
that
it
has
bec
om
e p
rob
able
th
at
futu
re t
axab
le p
rofi
t w
ill
allo
w t
he
def
erre
d t
ax a
sset
s to
be
reco
vere
d.
33
3.5.
2 F
inan
ce L
ease
s
Ass
ets
leas
ed
to
cust
om
ers
un
der
ag
reem
ents
th
at
tran
sfer
sub
stan
tial
ly
all
the
risk
s an
d
rew
ard
s as
soci
ated
w
ith
ow
ner
ship
oth
er t
han
leg
al t
itle
are
cla
ssifi
ed a
s fi
nan
ce l
ease
s.
Lea
se r
enta
ls r
ecei
vab
le i
n t
he
Bal
ance
Sh
eet
incl
ud
e to
tal
leas
e
pay
men
ts
du
e n
et
of
un
earn
ed
leas
e in
tere
st
inco
me
no
t
accr
ued
to
rev
enu
e, i
nte
rest
in
su
spen
se a
nd
pro
visi
on
fo
r b
ad
and
do
ub
tfu
l rec
ove
ries
.
3.5.
2.1
Pro
visi
on
s fo
r L
ease
Rec
eiva
ble
Spec
ific
pro
visi
on
has
bee
n m
ade
in r
elat
ion
to
id
enti
fyin
g
po
ssib
le b
ad a
nd
do
ub
tfu
l lo
sses
bas
ed o
n a
co
nti
nu
ou
s re
view
of
leas
e p
ort
foli
o.
Thes
e p
rovi
sio
ns
are
req
uir
ed
un
der
th
e
Fin
ance
Lea
sin
g (A
men
dm
ent)
Act
No.
24
of
2005
an
d a
pp
ly
acco
rdin
g to
th
e C
entr
al B
ank
Dir
ecti
on
No.
2 o
f 20
05.
Pro
visi
on
s ar
e u
sed
to
wri
te o
ff a
dva
nce
s, i
n p
arts
or
in w
ho
le,
wh
en le
ases
are
co
nsi
der
ed p
artl
y o
r w
ho
lly
irre
cove
rab
le.
Spec
ific
pro
visi
on
fo
r le
ase
rece
ivab
les
is a
rriv
ed a
t u
sin
g th
e
foll
ow
ing
bas
is.
Per
iod
Ou
tsta
nd
ing
M
inim
um
Pro
visi
on
mad
e
net
of
real
isab
le v
alu
e o
f
secu
rity
6 to
12
mo
nth
s
20
%
12 t
o 1
8 m
on
ths
50
%
18 m
on
ths
and
ab
ove
100%
3.5.
3 In
vest
men
ts
3.5
.3.1
Dea
lin
g S
ecu
riti
es
Inve
stm
ents
in
Co
mp
anie
s, o
f w
hic
h s
har
es a
re q
uo
ted
, ar
e
valu
ed a
t th
e lo
wer
of
cost
or
mar
ket
valu
e o
n t
he
Agg
rega
ted
Po
rtfo
lio
bas
is. A
dju
stm
ent
for
fall
in m
arke
t va
lue
bel
ow
co
st if
rele
van
t is
acc
ou
nte
d f
or
by c
har
gin
g th
e d
iffer
ence
to
th
e
Inco
me
Stat
emen
t.
3.5.
3.2
Inve
stm
ent S
ecur
itie
s
Thes
e ar
e ac
quir
ed
and
held
fo
r yi
eld
or
capi
tal
grow
th
in
the
med
ium
/lon
g te
rm.
Such
sec
urit
ies
are
reco
rded
at
cost
. C
hang
es i
n
mar
ket
valu
es
of
thes
e Se
curi
ties
ar
e no
t ta
ken
into
Fi
nanc
ial
Stat
emen
ts u
nles
s, th
ese
are
cons
ider
ed to
be
perm
anen
t dim
inut
ion
in
valu
e. W
here
the
gro
up i
nter
ests
in
equi
ty i
s le
ss t
han
20%
and
or
in
com
pani
es w
here
the
Com
pany
doe
s no
t exe
rcis
e si
gnifi
cant
influ
ence
and/
or c
ontr
ol o
ver
the
finan
cial
and
ope
rati
ng p
olic
ies,
inv
estm
ents
are
valu
ed a
t cos
t.
Unq
uote
d In
vest
men
ts a
re s
tate
d at
cos
t.
Def
erre
d ta
x as
sets
and
lia
bilit
ies
are
mea
sure
d at
tax
rat
es t
hat
are
expe
cted
to a
pply
to t
he y
ear
whe
n th
e as
sets
are
rea
lised
or
liabi
lity
is
sett
led,
bas
ed o
n th
e ta
x ra
tes
and
tax
law
s th
at h
ave
been
ena
cted
or
subs
tant
ivel
y en
acte
d as
at t
he B
alan
ce S
heet
dat
e.
Inco
me
tax
rela
ting
to it
ems
reco
gniz
ed d
irec
tly
in e
quit
y is
rec
ogn
ised
in e
quit
y.
Def
erre
d ta
x as
sets
and
def
erre
d ta
x lia
bilit
ies
are
offse
t, if
a l
egal
ly
enfo
rcea
ble
righ
t exi
sts
to s
et o
ff c
urre
nt ta
x as
sets
aga
inst
tax
liabi
litie
s
and
the
diff
ered
tax
es r
elat
ed t
o th
e sa
me
taxa
ble
enti
ty a
nd t
o sa
me
taxa
tion
aut
hori
ty.
3.3
Com
par
ativ
e Fi
gure
s
The
figur
es a
nd p
hras
es o
f th
e pr
evio
us y
ear
have
bee
n re
arra
nged
whe
reve
r ne
cess
ary
to c
onfo
rm to
the
curr
ent y
ears
’ pre
sent
atio
n.
3.4
Eve
nts
aft
er t
he
Bal
ance
Sh
eet
Dat
e
All
the
mat
eria
l ev
ents
aft
er
the
Bal
ance
Sh
eet
date
ha
ve
been
cons
ider
ed a
nd a
ppro
pria
te a
djus
tmen
t to/
disc
losu
res
have
bee
n m
ade
in th
e no
tes
to th
e fin
anci
al s
tate
men
ts.
3.5
Ass
ets
and
Bas
es o
f Th
eir
Val
uat
ion
3.5.
1 L
oan
s an
d A
dvan
ces
to C
usto
mer
s
Loan
s an
d ad
vanc
es a
re s
tate
d in
the
Bal
ance
She
et n
et o
f pro
visi
ons
for
poss
ible
bad
and
dou
btfu
l loa
ns a
nd n
et o
f int
eres
t in
sus
pens
e, w
hich
is n
ot a
ccru
ed to
rev
enue
.
3.5.
1.1
Pro
visi
on fo
r L
oan
Los
ses
Spec
ific
Pro
visi
ons
for
poss
ible
loan
loss
es a
re b
ased
on
a co
ntin
uous
revi
ew o
f the
loan
s an
d ad
vanc
es p
ortf
olio
.
Thes
e pr
ovis
ions
rel
ate
to id
enti
fied
bad
and
doub
tful
adv
ance
s. Th
ese
prov
isio
ns a
re r
equi
red
unde
r th
e Fi
nanc
e Le
asin
g (A
men
dmen
t) A
ct
No.
24
of 2
005
and
appl
y ac
cord
ing
to t
he C
entr
al B
ank
Dir
ecti
on N
o.
2 of
200
5. I
n ad
diti
on, a
s a
mat
ter
of p
rude
nce,
gen
eral
pro
visi
ons
are
mad
e w
here
ver
nece
ssar
y ba
sed
on r
ecog
niti
on c
rite
ria
as p
er S
ri
Lan
ka A
ccou
ntin
g St
anda
rd N
o. 3
6. P
rovi
sion
s ar
e ap
plie
d to
wri
te o
ff
adva
nces
, in
par
t or
in
who
le,
whe
n lo
ans
are
cons
ider
ed p
artl
y or
who
lly ir
reco
vera
ble.
Spec
ific
prov
isio
n fo
r lo
an a
nd a
dvan
ces
are
arri
ved
at u
sing
the
follo
win
g ba
sis.
Peri
od
C
lass
ifica
tion
M
inim
um P
rovi
sion
O
utst
andi
ng
mad
e n
et o
f re
alis
able
valu
e of
sec
urit
y
6 to
12
mon
ths
Sub-
stan
dard
20%
12 to
18
mon
ths
Dou
btfu
l
50
%
18 m
onth
s
Loss
100%
and
abov
e
34
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
3.5.
3.3
Inve
stm
ents
in T
reas
ury
Bil
ls a
nd
Bon
ds
Inve
stm
ents
in T
reas
ury
Bill
s an
d B
onds
are
refle
cted
at t
he v
alue
of t
he
Bill
s/B
onds
pur
chas
ed a
nd t
he d
isco
unt/
prem
ium
acc
rued
the
reon
.
Dis
coun
t re
ceiv
ed/p
rem
ium
pai
d is
tak
en o
n th
e In
com
e St
atem
ent
base
d on
a p
atte
rn r
eflec
ting
a c
onst
ant p
erio
dic
rate
of r
etur
n.
3.5.
3.4
Inve
stm
ent P
rop
erti
es
Inve
stm
ents
in L
and
& B
uild
ing
that
are
not
occ
upie
d su
bsta
ntia
lly fo
r
use
by o
r in
the
oper
atio
ns o
f the
Com
pany
are
cla
ssifi
ed a
s In
vest
men
t
Pro
pert
ies.
Inve
stm
ent P
rope
rtie
s of
the
com
pany
are
sta
ted
at c
ost l
ess
prov
isio
n fo
r im
pair
men
t.
3.5.
3.5
Inve
stm
ent i
n R
eal E
stat
e
Lan
d pu
rcha
se
cost
an
d de
velo
pmen
t co
st
incu
rred
du
ring
th
e
deve
lopm
ent
peri
od o
f rea
l est
ate
proj
ects
hav
e be
en c
apit
alis
ed to
the
inve
ntor
ies.
3.5.
4 P
rop
erty
, Pla
nt &
Equ
ipm
ent
3.5.
4.1
Rec
ogn
itio
n a
nd
Mea
sure
men
ts
The
prop
erty
, pla
nt &
equ
ipm
ent a
re r
ecor
ded
at c
ost l
ess
accu
mul
ated
depr
ecia
tion
and
impa
irm
ent l
osse
s.
Item
s of
pro
pert
y, p
lant
& e
quip
men
t ar
e re
cogn
ised
upo
n di
spos
al o
r
whe
n no
fut
ure
econ
omic
ben
efits
exp
ecte
d fr
om it
s us
e. A
ny g
ain
or
loss
ari
sing
on
dere
cogn
itio
n of
the
ass
ets
is i
nclu
ded
in t
he I
ncom
e
Stat
emen
t in
the
year
the
asse
t is
dere
cogn
ised
.
The
cost
of
prop
erty
, pl
ant
& e
quip
men
t is
the
cos
t of
pur
chas
e or
cons
truc
tion
tog
ethe
r w
ith
any
expe
nses
inc
urre
d in
bri
ngin
g th
e
asse
ts to
its
wor
king
con
diti
on fo
r it
s in
tend
ed u
se.
Exp
endi
ture
inc
urre
d fo
r th
e pu
rpos
e of
acq
uiri
ng,
exte
ndin
g or
impr
ovin
g as
sets
of
perm
anen
t na
ture
by
mea
ns o
f w
hich
to
carr
y on
the
busi
ness
or
to in
crea
se th
e ea
rnin
g ca
paci
ty o
f the
bus
ines
s ha
s be
en
trea
ted
as c
apit
al e
xpen
ditu
re.
The
carr
ying
am
ount
of t
he p
rope
rty,
pla
nt &
equ
ipm
ent
are
revi
ewed
for
impa
irm
ent
whe
n ev
ents
or
chan
ges
in c
ircu
mst
ance
s in
dica
ted
that
the
carr
ying
am
ount
may
not
be
reco
vera
ble.
3.5.
4.2
Subs
equ
ent
Cos
ts/ R
epla
cem
ent
of p
arts
The
cost
of
repl
acin
g pa
rt o
f it
ems
of p
rope
rty,
pla
nt &
equ
ipm
ents
is
reco
gnis
ed in
the
car
ryin
g am
ount
of t
he it
em if
it is
pro
babl
e th
at t
he
futu
re e
con
omic
ben
efits
em
bodi
ed w
ithi
n t
he p
art
will
flow
to
the
Com
pany
and
its
cost
can
be
mea
sure
d re
liabl
y. Th
e co
st o
f day
to d
ay
serv
icin
g of
pro
pert
y, p
lant
& e
quip
men
t ar
e re
cogn
ized
in
Inco
me
Stat
emen
t as
it in
curr
ed.
Whe
n re
plac
emen
t co
sts
are
reco
gnis
ed in
the
car
ryin
g am
ount
of
an
item
of p
rope
rty,
pla
nt &
equ
ipm
ent,
the
rem
aini
ng c
arry
ing
amou
nt o
f
repl
aced
par
t is
dere
cogn
ised
.
3.5.
4.3
Dep
reci
atio
n
Dep
reci
atio
n is
pro
vide
d on
the
ass
ets
purc
hase
d an
d us
ed d
urin
g th
e
year
at t
he fo
llow
ing
rate
s on
the
stra
ight
-lin
e ba
sis.
Mot
or V
ehic
les
20
% p
er a
nnum
Com
pute
rs
20
% p
er a
nnum
Offi
ce E
quip
men
t & M
achi
nes
20%
per
ann
um
Furn
itur
e &
Fit
ting
s
20%
per
ann
um
Dep
reci
atio
n of
an
asse
t beg
ins
whe
n it
is a
vaila
ble
for
use
and
ceas
es a
t
earl
ier
of th
e da
te th
at th
e as
set i
s cl
assi
fied
as h
eld
for
sale
and
the
date
that
the
asse
t is
reco
gnis
ed.
Leas
ed a
sset
s ar
e de
prec
iate
d ov
er t
he s
hort
er o
f th
e le
ased
ter
m a
nd
thei
r us
eful
live
s.
3.5.
5 Im
pai
rmen
t of
Ass
ets
The
carr
ying
am
ount
of
Com
pany
’s no
n-fin
anci
al a
sset
s, o
ther
tha
n
defe
rred
tax
ass
et a
re r
evie
wed
at
each
rep
orti
ng d
ate
to d
eter
min
e
whe
ther
the
re is
any
indi
cati
on o
f im
pair
men
ts. I
f any
suc
h in
dica
tion
exis
ts, t
hen
asse
t’s r
ecov
erab
le a
mou
nt is
elim
inat
ed. F
or g
oodw
ill a
nd
inta
ngib
le a
sset
s th
at h
ave
inde
finit
e liv
es o
r th
at a
re n
ot y
et a
vaila
ble
for
use,
rec
over
able
am
ount
is e
stim
ated
at e
ach
repo
rtin
g da
te.
An
impa
irm
ent l
oss
is r
ecog
nise
d if
the
carr
ying
am
ount
of a
sset
s or
its
cash
-gen
erat
ing
unit
s ex
ceed
s it
s re
cove
rabl
e am
ount
. A
cash
-gen
erat
ing
unit
is
the
smal
lest
ide
ntifi
able
ass
ets
grou
p th
at
gene
rate
s ca
sh fl
ows
that
larg
ely
are
inde
pend
ent f
rom
oth
er a
sset
s an
d
grou
ps.
Impa
irm
ent
loss
es
are
reco
gnis
ed
in
Inco
me
Stat
emen
t.
Impa
irm
ent
loss
es a
re r
ecog
nise
d in
res
pect
of
cash
-gen
erat
ing
unit
s
and
are
allo
cate
d to
the
uni
ts a
nd t
hen
to r
educ
e th
e ca
rryi
ng a
mou
nt
of o
ther
ass
ets
in th
e un
it o
n pr
orat
e ba
sis.
35
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
The
reco
vera
ble
amou
nt o
f an
ass
et o
r ca
sh-g
ener
atin
g un
it i
s th
e
grea
ter
of it
s va
lue
in u
se a
nd it
s fa
ir v
alue
less
cos
ts to
sel
l. In
ass
essi
ng
valu
e in
use
, th
e es
tim
ated
fut
ure
cash
flow
s ar
e di
scou
nted
to
thei
r
pres
ent
valu
e us
ing
pre-
tax
disc
ount
rat
e th
at r
eflec
ts c
urre
nt m
arke
t
asse
ssm
ent
of t
he t
ime
valu
e of
mon
ey a
nd t
he r
isks
spe
cific
to
the
asse
t.
An
impa
irm
ent l
oss
in r
espe
ct o
f goo
dwill
is n
ot r
ever
sed.
In r
espe
ct o
f
othe
r as
sets
, im
pair
men
t lo
sses
re
cogn
ised
in
pr
ior
peri
ods
are
asse
ssed
at
each
rep
orti
ng d
ate
for
any
indi
cati
ons
that
the
los
s ha
s
decr
ease
d or
no
long
er e
xist
s. A
ny im
pair
men
t lo
ss is
rev
erse
d on
ly to
the
exte
nt t
hat
asse
t’s c
arry
ing
amou
nt d
oes
not
exce
ed t
he c
arry
ing
amou
nt t
hat
wou
ld h
ave
been
det
erm
ined
, ne
t of
dep
reci
atio
n or
amor
tisa
tion
, if n
o im
pair
men
t los
s ha
s be
en r
ecog
nise
d
3.5.
6 C
ash
and
Shor
t Ter
m F
unds
Cas
h an
d ca
sh e
quiv
alen
ts a
re d
efine
d as
cas
h in
han
d, d
eman
d
depo
sits
and
sho
rt t
erm
hig
hly
liqui
d in
vest
men
ts w
hich
are
rea
dily
conv
erti
ble
to k
now
the
amou
nt o
f cas
h an
d su
bjec
t to
insi
gnifi
cant
ris
k
of c
hang
e in
the
valu
e.
Cas
h an
d sh
ort-
term
fun
ds s
tate
d in
the
Bal
ance
She
et c
ompr
ise
cash
bala
nces
in h
and
and
at B
anks
and
cal
l inv
estm
ents
. For
the
purp
ose
of
cash
flow
sta
tem
ent,
cash
and
cas
h eq
uiva
lent
s co
nsis
t of
cas
h in
han
d
at B
ank,
dem
and
depo
sits
, ba
nk o
verd
raft
and
sec
urit
ies
purc
hase
unde
r re
sale
agr
eem
ent.
3.6
Lia
bili
ties
& P
rovi
sion
s
3.6.
1 In
tere
st-B
eari
ng
Bor
row
ings
Inte
rest
-bea
ring
bor
row
ings
are
rec
ogni
sed
init
ially
at
cost
, net
of
any
tran
sact
ion
cost
s in
curr
ed. S
ubse
quen
tly
to in
itia
l rec
ogn
itio
n, i
nter
est
bear
ing
borr
owin
gs a
re s
tate
d at
am
orti
sed
cost
wit
h an
y di
ffer
ence
betw
een
cost
and
red
empt
ion
valu
e be
ing
reco
gnis
ed i
n th
e in
com
e
Stat
emen
t ov
er t
he p
erio
d of
the
bor
row
ing.
Whe
n bo
rrow
ings
are
repu
rcha
sed
or s
ettl
ed b
efor
e m
atur
ity,
any
diff
eren
ce b
etw
een
the
amou
nt r
epai
d an
d ca
rryi
ng a
mou
nt is
rec
ogni
sed
imm
edia
tely
in t
he
Inco
me
Stat
emen
t.
3.6.
2 R
etir
emen
t Ben
efits
The
Com
pany
&
it
s Su
bsid
iary
m
easu
re
its
reti
rem
ent
bene
fit
oblig
atio
n ba
sed
on th
e G
ratu
ity
Form
ula
Met
hod
as r
ecom
men
ded
by
the
Sri L
anka
Acc
ount
ing
Stan
dard
s N
o. 1
6 (R
evis
ed 2
006)
“E
mpl
oyee
Ben
efits
”. A
s pe
r th
e pa
ymen
t of
Gra
tuit
y A
ct N
o. 1
2 of
198
3 th
e
liabi
lity
to a
n em
ploy
ee a
rise
s on
ly o
n co
mpl
etio
n of
5 y
ears
of
cont
inue
d se
rvic
e.
3.6.
3 E
mpl
oyee
s’ P
rovi
dent
Fun
d an
d E
mpl
oyee
s’ T
rust
Fun
d
Em
ploy
ees
are
elig
ible
for
Em
ploy
ees’
Pro
vide
nt F
und
and
Em
ploy
ees’
Trus
t Fu
nd c
ontr
ibut
ions
in
acco
rdan
ce w
ith
the
resp
ecti
ve s
tatu
tes
and
legi
slat
ions
. The
Ban
k co
ntri
bute
s 12
% a
nd 3
% o
f gr
oss
sala
ry o
f
empl
oyee
s to
the
Em
ploy
ees’
Pro
vide
nt F
und
and
Em
ploy
ees’
Tru
st
Fund
res
pect
ivel
y.
3.6.
4 C
omm
itm
ents
an
d C
onti
nge
nt L
iabi
litie
s
All
mat
eria
l ca
pita
l co
mm
itm
ents
and
con
ting
ent
liabi
litie
s of
the
Com
pany
and
gro
up a
re d
iscl
osed
in r
espe
ctiv
e N
otes
to t
he F
inan
cial
Stat
emen
ts a
nd a
ll di
scer
nibl
e ri
sks
are
acco
unte
d fo
r in
det
erm
inin
g
the
amou
nt o
f oth
er li
abili
ties
.
3.7
Eve
nts
Occ
urr
ing
after
th
e B
alan
ce S
hee
t D
ate
All
mat
eria
l ev
ents
occ
urre
d aft
er t
he B
alan
ce S
heet
dat
e ha
s be
en
cons
ider
ed a
nd a
ppro
pria
te a
djus
tmen
ts/
disc
losu
res
have
bee
n m
ade
in th
e Fi
nanc
ial S
tate
men
t whe
re n
eces
sary
.
3.8
In
com
e St
atem
ents
3.8.
1 In
tere
st I
nco
me
from
Loa
ns
and
Adv
ance
s
Inte
rest
inco
me
is r
ecog
nise
d on
an
accr
ual b
asis
. How
ever
, no
accr
ued
inte
rest
inco
me
is r
ecog
nise
d w
here
any
por
tion
of c
apit
al o
r in
tere
st is
in a
rrea
rs f
or s
ix m
onth
s or
mor
e. I
n su
ch c
ases
int
eres
t in
com
e is
acco
unte
d fo
r on
a c
ash
basi
s.
3.8.
2 L
ease
In
com
e
The
exce
ss o
f ag
greg
ate
leas
e re
ntal
rec
eiva
ble
over
the
cos
t of
the
leas
ed
asse
ts
cons
titu
tes
the
tota
l un
earn
ed
leas
e in
com
e at
th
e
com
men
cem
ent
of t
he le
ase.
The
unea
rned
leas
e in
com
e is
tak
en in
to
inco
me
over
the
ter
m o
f th
e le
ase
on p
ropo
rtio
n to
the
dec
linin
g
rece
ivab
le b
alan
ce. H
owev
er, n
o ac
crue
d in
tere
st in
com
e is
rec
ogni
sed
whe
re a
ny p
orti
on o
f ca
pita
l or
inte
rest
is in
arr
ears
for
six
mon
ths
or
mor
e. I
n su
ch c
ases
inte
rest
inco
me
is a
ccou
nted
for
on a
cas
h ba
sis.
3.8.
3 O
per
atin
g L
ease
s –
Ren
tal I
nco
me
Ren
tal i
ncom
e is
rec
ogni
sed
as r
even
ue o
n a
stra
ight
line
bas
is o
ver
the
term
of l
ease
. How
ever
, no
accr
ued
rent
al in
com
e is
rec
ogni
sed
whe
re
any
port
ion
of c
apit
al o
r in
tere
st is
in a
rrea
rs fo
r si
x m
onth
s or
mor
e. In
such
cas
es r
enta
l inc
ome
is a
ccou
nted
for
on a
cas
h ba
sis.
3.8.
4 In
tere
st I
nco
me
from
Oth
er S
ourc
es
Inte
rest
inc
ome
from
Gov
ernm
ent
Secu
riti
es i
s re
cogn
ised
on
tim
e
prop
orti
on b
asis
as
disc
ount
on
purc
hase
, ove
r th
e pe
riod
to
mat
urit
y
or t
he d
ate
of s
ale.
Inc
ome
from
oth
er i
nter
est
bari
ng i
nves
tmen
ts i
s
reco
gnis
ed a
s re
venu
e on
an
accr
ual b
asis
.
3.8.
5 In
com
e fr
om F
ee B
ase
Act
ivit
ies
Fee
and
Com
mis
sion
Inc
ome
is r
ecog
nise
d on
a c
ash
basi
s.
3.8.
6 D
ivid
end
Inco
me
Div
iden
d in
com
e is
rec
ogni
sed
on a
n ac
crua
l ba
sis
in t
he p
erio
d in
whi
ch d
ivid
end
is d
ecla
red.
3.8.
7 P
rofi
t or
Los
s on
Sal
e of
Mar
keta
ble
Secu
riti
es
Pro
fit o
r lo
ss a
risi
ng o
n sa
le o
f eq
uity
sha
res,
com
mer
cial
pap
ers
and
othe
r m
arke
tabl
e se
curi
ties
is a
ccou
nted
for
on a
cas
h ba
sis.
36
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
3.8.
8 P
rofi
t or
Los
s on
Sal
e of
Pro
per
ty, P
lant
an
d E
quip
men
t
Pro
fits
or lo
sses
of
a re
venu
e na
ture
on
the
disp
osal
of
Pro
pert
y, P
lant
and
Equ
ipm
ent a
re a
ccou
nted
for
in th
e In
com
e St
atem
ent.
3.9
Seg
men
t R
epor
tin
g
A s
egm
ent i
s a
dist
ingu
isha
ble
com
pone
nt o
f the
Gro
up th
at is
eng
aged
in
prov
idin
g pr
oduc
ts
or
serv
ices
w
ithi
n a
part
icul
ar
econ
omic
envi
ronm
ent,
whi
ch i
s su
bjec
t to
ris
k an
d re
war
ds t
hat
are
diff
eren
t
from
thos
e of
oth
er s
egm
ents
.
3.10
Cas
h F
low
Sta
tem
ents
The
Cas
h Fl
ow h
as b
een
prep
ared
by
usin
g th
e “D
irec
t M
etho
d” o
f
prep
arin
g C
ash
Flow
s. C
ash
and
shor
t-te
rm f
unds
are
com
pris
ed o
f
cash
in
hand
and
cas
h in
Ban
k, d
eman
d de
posi
ts a
nd s
ecur
itie
s
purc
hase
und
er r
esal
e ag
reem
ent.
3.11
Eff
ects
of
Acc
oun
tin
g St
anda
rds
issu
ed b
ut
not
yet
eff
ecti
ve
The
Inst
itut
e of
Cha
rter
ed A
ccou
ntan
ts o
f Sr
i Lan
ka h
as is
sued
a n
ew
volu
me
of
Sri
Lan
ka
Acc
ount
ing
Stan
dard
s w
hich
w
ill
beco
me
appl
icab
le fo
r fin
anci
al p
erio
ds b
egin
ning
on
or a
fter
1st
Janu
ary,
201
2.
Acc
ordi
ngly
, the
se s
tand
ards
hav
e no
t be
en a
pplie
d in
pre
pari
ng t
hese
Fina
ncia
l Sta
tem
ents
as
the
effec
tive
dat
es o
f th
ese
stan
dard
s ar
e aft
er
the
Bal
ance
She
et d
ate.
Thes
e Sr
i L
anka
A
ccou
ntin
g St
anda
rds
com
pris
e A
ccou
ntin
g
Stan
dard
s pr
efixe
d bo
th S
LFR
S (c
orre
spon
ding
to
IFR
S) a
nd L
KA
S
(cor
resp
ondi
ng
to
IAS)
. A
pplic
atio
n of
Sr
i L
anka
A
ccou
ntin
g
Stan
dard
s pr
efixe
d SL
FRS
and
LKA
S fo
r fir
st t
ime
shal
l be
deem
ed t
o
be a
n ad
opti
on o
f SLF
RSs
.
The
Com
pany
is
curr
entl
y in
the
pro
cess
of
eval
uati
ng t
he p
oten
tial
effec
t of t
hese
sta
ndar
ds o
n it
s Fi
nanc
ial S
tate
men
ts a
nd th
e im
pact
s of
the
adop
tion
of t
hese
sta
ndar
ds h
ave
not b
een
quan
tifie
d as
at B
alan
ce
Shee
t dat
e.
37
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
4G
RO
SS I
NC
OM
E
Inte
rest
Inc
ome
(Not
e 5)
Oth
er I
ncom
e (N
ote
7)
5IN
TE
RE
ST I
NC
OM
E
Loan
s an
d A
dvan
ces
Leas
e In
tere
st I
ncom
e
Oth
er I
nter
est I
ncom
e
6IN
TE
RE
ST E
XP
EN
SES
Bor
row
ings
& R
efina
nce
Inte
rest
exp
ense
s on
Deb
entu
res
7O
TH
ER
IN
CO
ME
Div
iden
d In
com
e fr
om D
ealin
g Se
curi
ties
- Q
uote
d
Div
iden
d In
com
e
Fee
& C
omm
issi
on I
ncom
e
Pro
fit o
n Sa
le o
f Pro
pert
y, P
lant
& E
quip
men
t
Pro
fit o
n Sa
le o
f Inv
estm
ent S
ecur
itie
s
Pro
fit o
n Sa
le o
f Inv
estm
ent P
rope
riti
es
Oth
ers
8O
PE
RA
TIN
G E
XP
EN
SES
Ope
rati
ng E
xpen
ses
incl
ude
the
follo
win
g :-
Dir
ecto
rs'
Em
olum
ents
Aud
itor
s' E
mol
umen
ts
Oth
er A
udit
or F
ees
Non
Aud
it F
ees
Dep
reci
atio
n
Don
atio
ns
Exp
ense
s on
Lit
igat
ion
Con
trib
utio
n to
Em
ploy
ees
Pro
vide
nd F
und
Con
trib
utio
n to
Em
ploy
ees
Trus
t Fun
d
Pro
visi
on fo
r E
mpl
oyee
Ret
irem
ent B
enefi
ts is
sho
wn
sepa
rate
ly in
Not
e 26
.a
102,
228,
741
38,7
71,6
97
141,
000,
438
47,6
06,7
71
41,8
74,0
96
12,7
47,8
74
102,
228,
741
56,0
07,7
80
8,72
4,71
7
64,7
32,4
97
48,6
40 -
28,2
58,0
79
19,1
96
2,79
9,38
7
153,
000
2,61
0,85
9
38,7
71,6
97
2,78
6,86
5
400,
000
412,
979
147,
000
4,05
2,45
4
840,
674
2,98
8,18
4
747,
046
Aud
it F
ees
101,
717,
870
22,3
92,0
70
124,
109,
940
47,9
06,7
71
41,8
74,0
96
11,9
37,0
03
101,
717,
870
56,0
07,7
80
8,72
4,71
8
64,7
32,4
98
-
2,94
1,17
6
11,2
47,7
49
19,1
96
1,50
8,92
8
153,
000 -
Roy
alit
y In
com
e-
1,63
9,48
5
22,3
92,0
70
2,78
6,86
5
300,
000
412,
979
147,
000
3,66
9,32
0
840,
674
2,28
4,61
8
571,
155
-
Pro
visi
on fo
r R
etir
emen
t Ben
efit O
blig
atio
ns47
0,96
9 30
0,00
0
Inte
rest
on
Rev
erse
RE
PO
& F
ixed
Dep
osit
s4,
882,
536
4,88
2,53
6
Pro
visi
on fo
r Im
pair
men
t Los
ses
15,1
69,7
7415
,169
,774
71,4
46,8
73
59,0
56,7
13
130,
503,
586
30,5
22,8
39
34,4
44,3
43
6,47
9,69
1
71,4
46,8
73
31,
353,
459
16,2
55,5
10
47,6
08,9
69
53,7
46 -
28,7
91,6
61
92,2
62
800,
843
26,2
89,5
77
-
3,02
8,62
4
59,0
56,7
13
5,88
5,64
5
450
,000
591,
364
45,0
00
3,19
4,23
6 -
938,
286
3,45
5,14
6
863,
787 -
5,6
63,7
45 -
70,6
64,2
62
37,2
73,4
15
107,
937,
677
30,5
22,8
39
34,4
44,3
43
5,69
7,08
0
70,6
64,2
62
31,3
53,4
59
16,2
55,5
10
47,6
08,9
69 -
6,07
5,00
0
1,78
7,95
2
92,2
62 -
26,2
89,5
77 -
3,02
8,62
4
37,2
73,4
15
5,88
5,64
5
350,
000
591,
364 -
2,7
51,5
62
--
938,
286
2,36
8,19
1
592,
048 -
4,56
3,65
4 -
Fo
r th
e Y
ear
En
ded
31
Dec
emb
er2
01
1
Rs.
20
11
Rs.
20
10
Rs.
20
10
Rs.
CO
MPA
NY
GR
OU
P
38
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
-
-
9P
RO
VIS
ION
S F
OR
LO
AN
LO
SSE
S
Prov
isio
n m
ade
/ (R
ever
sed)
for L
oan
Loss
es
Dir
ect W
rite
off
10T
AX
AT
ION
Inco
me
Tax
on p
rofit
s (N
ote
10.a
)-
2,51
5,28
4
10.a
Rec
onci
liat
ion
of
Acc
oun
tin
g P
rofi
t an
d th
e In
com
e T
ax E
xpen
se
37,8
79,2
8237
,879
,282
(6,
561,
223)
(6,5
61,2
23)
31,3
18,0
5931
,318
,059
(24,
839,
263) -
(24,
839,
263)
19,4
42,8
96
(66,
744,
519)
42,
656,
477
36,6
41,0
03
-
(36,
641,
003)
94,6
10,0
40
25,2
89,8
17
(29
,941
,757
)
-
SRL
@ 1
.5%
-
Tota
l Tax
Lia
bili
ty
(36,
641,
003)
419,
470
ESC
wri
tten
off
dur
ing
the
year
2,51
5,28
42,
515,
284
3,18
4,15
1
Prov
isio
n fo
r D
efer
red
Tax
(Not
e 23
)-
249,
397
Pro
fit/(
Loss
) B
efor
e Ta
xati
on &
Val
ue A
dded
Tax
on F
inan
cial
Ser
vice
sA
ggre
gate
Dis
allo
wed
Exp
ense
s
Agg
rega
te A
llow
able
Exp
ense
s A
ggre
gate
Allo
wab
le I
ncom
e A
ggre
gate
Dis
allo
wed
Inc
ome
Pro
fit/
(Los
s) F
rom
th
e B
usi
nes
s
Tota
l Sta
tuto
ry I
nco
me
Tax
Loss
cla
imed
dur
ing
the
year
(N
ote
10.b
)
Tax
able
Pro
fit
33,3
31,2
40
27,2
67,9
28
(80,
082,
101)
94,6
10,0
40(3
4,11
2,96
8)
41,0
14,1
39
41,0
14,1
39
(39,
833,
365)
1,18
0,77
4
Tax
atio
n Th
ereo
n -
41
3,27
1
6,19
9
419,
470
Inco
me
Tax
prov
isio
n of
SM
B L
easi
ng P
LC b
eing
quo
ted
publ
ic c
ompa
ny, h
as b
een
calc
ulat
ed o
n it
s ta
xabl
e pr
ofit a
t 28%
in te
rms
of I
nla
nd R
even
ue
Act
No.
10
of 2
006,
and
am
endm
ents
ther
eto.
Pro
fits
of S
MB
Mon
ey B
roke
rs (
Pvt
) Lt
d., s
ubsi
diar
y of
the
grou
p is
liab
le to
inco
me
tax
at 1
0%.
(6,
015,
474)
Pro
fit fr
om o
ther
sou
rce
of I
ncom
e
Loss
from
oth
er s
ourc
e of
Inc
ome
-
(24,
839,
263) -
(24,
839,
263)
Fo
r th
e Y
ear
En
ded
31
Dec
emb
er2
01
1
Rs.
20
11
Rs.
20
10
Rs.
20
10
Rs.
CO
MPA
NY
GR
OU
P
417,
094
3,14
7,69
83,
147,
698
64,2
22
3,62
9,01
43,
147,
698- -
(28
,289
,373
) (
35,5
18,1
11)
44,5
98,4
2239
,073
,794
(10
9,97
0,48
0) (
109,
448,
186)
73,1
89,5
4373
,189
,543
(16
,587
,117
) (
15,7
32,5
29)
(37
,059
,005
) (
48,4
35,4
89)
4,17
0,93
5
-
-
4,17
0,93
5 -
417,
094
-
- -
417,
094
-
-
- --
--
-
39
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
10.b
Acc
um
ula
ted
Ta
x L
oss
es
Bal
ance
as
at 1
st Ja
nuar
y
Adj
ustm
ent i
n re
spec
t of p
rior
yea
rs
Cha
rge/
(R
ever
sal)
for
the
year
Tax
Loss
cla
imed
dur
ing
the
year
Bal
ance
as
at 3
1st D
ecem
ber
(78,
802,
683)
(5,3
10,7
58)
488,
019,
325
372,
575,
639
372,
575,
639
415,
700,
370
-48
,435
,489
20
11
Rs.
20
10
Rs.
20
10
Rs.
CO
MPA
NY
GR
OU
P
-
(39,
833,
365)
(75,
610,
321)
488,
019,
325
372,
575,
639-
(5,3
10,7
58)
372,
575,
639
415,
700,
370
48,4
35,4
89 -
20
11
Rs.
20
11
Rs.
20
10
Rs.
10.c
Gro
up
Def
erre
d T
ax o
n S
MB
Lea
sin
g P
LC
SMB
Lea
sin
g P
LC
has
no
t re
cogn
ised
def
erre
d t
ax a
sset
sin
ce t
he
man
agem
ent
do
es n
ot
exp
ect
adeq
uat
e ta
xab
le p
rofi
t in
th
e fu
ture
in
res
pec
t o
f SM
B L
easi
ng
PL
C.Th
eref
ore
tax
ass
et a
rris
ing
fro
m t
he
tax
loss
es c
arri
ed f
orw
ard
was
lim
ited
on
ly t
o t
he
exte
nt
of
exis
tin
g te
mp
ero
ry d
iffer
ence
s in
res
pec
t o
f SM
B L
easi
ng
PL
C.
Ho
wev
er i
n r
esp
ect
of
th
e so
le s
ub
sid
iary
, SM
B M
on
ey B
roke
rs
(Pri
vate
) L
imit
ed a
def
erre
d t
ax a
sset
has
bee
n r
eco
gniz
ed,
sin
ce t
he
Man
agem
ent
exp
ects
ad
equ
ate
taxa
ble
pro
fit
in t
he
futu
re i
n
resp
ect
of
SMB
Mo
ney
Bro
kers
(P
riva
te)
Lim
ited
. Th
eref
ore
, th
e G
rou
p d
efer
red
tax
ass
et i
ncl
ud
es o
nly
th
e d
efer
red
tax
ass
et
rele
van
t to
SM
B M
on
ey B
roke
rs (
Pri
vate
) L
imit
ed.
On
Ret
irem
ent B
enefi
t Obl
igat
ion
On
Pro
pert
y, P
lant
& E
quip
men
t
The
defe
rred
tax
has
bee
n c
alcu
late
d at
th
e ra
te o
f 28
%.
Bal
ance
as
at 1
st Ja
nuar
y47
1,06
722
1,67
0
127,
780
12,7
7824
5,07
3 6
8,62
0
1,44
6,69
714
4,67
054
6,60
615
3,05
0
1,57
4,47
722
1,67
0
Tem
por
ary
diff
eren
ce
31.1
2.20
10
Tax
Eff
ect
31.1
2.20
10
Tem
por
ary
diff
eren
ce
31.1
2.20
11
Tax
Eff
ect
31.1
2.20
11
Rs.
Rs.
Rs.
Rs.
40
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
Bal
ance
as
at 3
1st D
ecem
ber
221,
670
157,
448
Cha
rge/
(R
ever
sal)
for
the
year
(249
,397
)(6
4,22
2)
The
abov
e re
cogn
ized
def
erre
d ta
x as
set i
s at
trib
utab
le to
the
follo
win
g;
157,
448
791,
679
20
11
Rs.
20
10
Rs.
Com
pan
y
On
Ret
irem
ent B
enefi
f Obl
igat
ion
On
Acc
umul
ated
Tax
Los
ses
On
Pro
pert
y, P
lant
& E
quip
men
t
Adj
ustm
ents
in r
espe
ct o
f pri
or y
ears
-22
1,66
9
Bal
ance
as
at 1
st Ja
nuar
y76
,575
,393
68,5
76,8
79
(16
7,62
0,56
9)(4
6,93
3,75
9)(1
30,2
76,1
61)
(36
,477
,355
)
4,34
9,04
81,
217,
734
2,61
8,05
373
3,05
5
415,
700,
370
116,
396,
104
372,
575,
639
104,
321,
179
252,
428,
849
68,5
76,8
79
Tem
por
ary
diff
eren
ce
31.1
2.20
10
Tax
Eff
ect
31.1
2.20
10
Tem
por
ary
diff
eren
ce
31.1
2.20
11
Tax
Eff
ect
31.1
2.20
11
Rs.
Rs.
Rs.
Rs.
Bal
ance
as
at 3
1st D
ecem
ber
68,5
76,8
7970
,680
,078
Cha
rge/
(R
ever
sal)
for
the
year
(7,9
98,5
14)
1,88
1,53
0
The
abov
e un
reco
gniz
ed d
efer
red
tax
asse
t is
attr
ibut
able
to th
e fo
llow
ing;
70,6
80,0
7824
4,91
7,53
1
The
defe
rred
tax
has
bee
n c
alcu
late
d at
th
e ra
te o
f 10
% (
2010
- 2
8%).
-
11B
ASI
C E
AR
NIN
GS/
(LO
SS)
PE
R S
HA
RE
GR
OU
PC
OM
PAN
Y
2010
Rs.
2010
Rs.
GR
OU
PC
OM
PAN
Y
As
at 3
1st D
ecem
ber
Net
Pro
fit/(
Loss
) at
trib
utab
le to
Ord
inar
y Sh
areh
olde
rs (
Rs.
)
No.
of O
rdin
ary
Shar
es
Bas
ic E
arni
ngs/
(Los
s) p
er S
hare
(R
s.)
12C
ASH
IN
HA
ND
& B
AL
AN
CE
S W
ITH
BA
NK
S
Cas
h in
han
d an
d B
alan
ces
wit
h B
anks
Cas
h an
d C
ash
equi
vale
nts
for
the
purp
ose
ofC
ash
flow
Sta
tem
ent
Un
favo
ura
ble
Bal
ance
s
Ban
k O
ver
draft
s
Favo
ura
ble
Bal
ance
s
As
at 3
1st D
ecem
ber
2011
Rs.
27,1
17,5
58
807,
101,
782
300,
580,
666
(40
,623
,471
)
259,
957,
195
2011
2010
2011
Rs.
14,0
95,5
00
807,
101,
782
297,
843,
372
(40,
623,
471)
257,
219,
901
2011
2010
13T
REA
SUR
Y B
ILLS
AN
D B
ON
DS
ELIG
IBLE
FO
RR
EDIS
CO
UN
TIN
G W
ITH
TH
E C
ENT
RA
L B
AN
K
Trea
sury
Bill
s - -
1,30
0,00
0
1,30
0,00
0
14P
LA
CE
ME
NT
S W
ITH
AN
D L
OA
NS
TO
O
TH
ER
BA
NK
S
Ban
k of
Cey
lon
Ltd
-
Sam
path
Ban
k P
LC67
,830
,009
67,8
30,0
0973
,179
,881
70,6
79,8
81
2,50
0,00
0
15IN
VE
STM
EN
T S
EC
UR
ITIE
S
Quo
ted
Equ
ity
Inve
stm
ents
Hel
d by
SM
B L
easi
ng P
LC. (
Not
e 15
.a.1
)
Non
quo
ted
Deb
entu
re I
nves
tmen
s -
Non
Cur
rent
(N
ote
15.c
)
Hel
d by
SM
B L
easi
ng P
LC-
Tota
l
-
2,65
0,46
7
6,23
8,69
5
2,65
0,46
7
2,65
0,46
7
0.0
30.
02
(35,
277,
199)
1,38
6,48
6,51
4
(0.0
2)
408,
336,
075
(50
,084
,678
)
358,
251,
397
2,20
0,00
0
2,20
0,00
0
2,50
0,00
0
75,7
43,2
13
78,2
43,2
13
407,
992,
144
(50
,084
,678
)
357,
907,
466 -
72,7
13,7
70
-
72,7
13,7
70
6,30
8,47
7
-
9,77
6,36
0
6,30
8,47
7
6,30
8,47
7- -
(42,
602,
939)
1,38
6,48
6,51
4
(0.0
3)
41
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
Hel
d by
SM
B M
oney
Bro
kers
(P
vt)
Ltd.
(N
ote
15.a
.2)
6,23
8,69
52,
650,
467
9,77
6,36
06,
308,
477
--
--
3,46
7,88
33,
588,
228
-
Non
quo
ted
Equi
ty In
vest
men
ts h
eld
by S
MB
Lea
sing
PLC
(Not
e 15
.b)
--
--
15
.a.1
Qu
ote
d E
qu
ity
Inve
stm
ents
hel
d b
y S
MB
Lea
sin
g P
LC
No
of
shar
es C
ost
Rs.
Mar
ket
Val
ue
Rs.
Ban
kin
g, F
inan
ce &
In
sura
nce
The
Fin
ance
Co.
PL
C
Man
ufa
ctu
rin
g
Blu
e D
iam
on
d J
ewel
lery
Wo
rld
wid
e P
LC
Mag
pek
Exp
ort
s P
LC
Met
al R
ecyc
lers
Co
lom
bo
PL
C
Fo
otw
ear
& T
exti
les
Pu
god
a T
exti
le M
ills
PL
C
Lan
d &
Pro
per
ty
Seyl
an D
evel
op
men
t P
LC
To
tal
Qu
ote
d
Les
s -
Pro
visi
on
fo
r D
imin
uti
on
in
val
ue
Net
Car
ryin
g A
mo
un
t (C
om
pan
y)
15
.a.2
Qu
ote
d E
qu
ity
Inve
stm
ents
hel
d b
y S
MB
Mo
ney
Bro
ker
s (P
vt)
Ltd
.
Ban
kin
g, F
inan
ce &
In
sura
nce
20
10
20
11
No
of
shar
es C
ost
Rs.
Mar
ket
Val
ue
Rs.
975,
273
3,76
4
5,27
33,
764
778,
280
4,64
0,93
22,
645,
981
125,
000
5,00
0,00
0 -
693,
105
-
9,64
4,03
72,
645,
981
7,50
025
2,52
5 -
252,
525
252,
525
252,
525
-
4346
072
246
072
243
460
529
460
529
9,90
2,29
52,
650,
467
(7,
251,
828)
-
2,65
0,46
72,
650,
467
Seyl
an B
ank
PL
C -
No
n V
oti
ng
10,0
00
504,
586
490,
000
Mer
chan
t B
ank
of
Sri
Lan
ka
PL
C14
,000
74
3,61
1 64
1,20
0A
sia
Cap
ital
PL
C6,
000
271,
544
282,
000
CV
Ven
ture
Fu
nd
10,0
00
218,
064
190,
000
1,73
7,80
5 1,
603,
200
Man
ufa
ctu
rin
g A
CL
Pla
stic
s P
LC
-
-
-
B
row
n &
Co
PL
C2,
000
511,
161
493,
800
Bai
rah
a F
amar
s P
LC
1,10
0 26
3,35
9 35
6,73
0T
ok
yo C
emen
t P
LC
325
7,03
2 13
,098
Hay
leys
Mgt
-Kn
itti
ng
Mil
ls P
LC
7,10
0 33
3,31
5 22
7,20
0P
elaw
atta
Su
gar
PL
C3,
000
95,0
86
82,2
00H
emas
Po
wer
PL
C4,
400
134,
541
129,
800
1,34
4,49
4 1,
302,
828
Lan
d &
Pro
per
ty
Co
lom
bo
Fo
rt L
and
& B
uil
din
g P
LC
-
-
Tel
eco
mm
un
icat
ion
D
ialo
ge T
elec
om
PL
C
9,00
0 25
5,59
0 10
6,20
0
255,
590
106,
200
Ho
tel
Ho
tel S
ervi
ces
(Cey
lon
) L
td.
-
-
-
Sun
shin
e H
old
ings
PL
C5,
000
280,
187
229,
500
Ren
uk
a H
old
ings
PL
C5,
000
251,
540
309,
500
531,
227
539,
000
As
at 3
1st
Dec
emb
er
975,
273
3,88
0
5,27
33,
880
778,
280
4,64
0,93
26,
304,
068
125,
000
5,00
0,00
0 -
693,
105
-
9,64
4,03
76,
304,
068
7,50
0 -
-
9,90
2,29
5 6,
308,
477
(3,
593,
818)
6,30
8,47
7 6,
308,
477
10,0
00
14,0
00 - -
504,
586
743,
611 - -
308,
000
554,
400 - -
Val
lib
el O
ne
Ltd
- -
-15
,000
43
4,36
0 35
7,00
0
1,21
9,40
01,
682,
557
200
1,50
0 - 32
5 7,
100
3,00
0 -
37,
414
493,
466 -
7,03
2 33
3,31
5 95
,086
-
1,91
1,43
2
25,
020
352,
200 -
9,91
320
2,35
070
,500
-
1,52
6,88
3
C W
Mac
kie
& C
o. P
LC
--
-C
eylo
n G
lass
PL
C-
--
Co
lon
ial M
oto
rs P
LC
--
-
4,80
0 30
,000
50
0
468,
793
243,
699
232,
627
429,
600
237,
000
200,
300
188,
086
102,
900
2,10
0 18
8,08
6 10
2,90
0
9,00
0 25
5,59
0 70
,200
255,
590
70,2
00
10,0
00
220
,972
2
03,0
005,
000
280,
187
145,
000
- -
-
822,
215
548,
500
Wal
ker
& G
reig
PL
C-
- -
5,00
0 32
1,05
620
0,50
0
42
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
No
of
Sh
ares
Co
stR
s.
No
of
Sh
ares
Co
stR
s.
Co
stR
s.C
ost
Rs.
20
11
20
10
15
.b N
on
Qu
ote
d E
qu
ity
Inve
stm
ents
hel
d b
y S
MB
Lea
sin
g P
LC
Cey
lin
co S
po
rts
Co
mp
lex
Ltd
.
Cey
lin
co I
nve
stm
ent
& R
ealt
y L
td.
Sera
ka
Inve
stm
ent
Ltd
. (N
ote
15
.b.1
.)
Sou
th A
sian
Tra
vels
Ltd
.
Cey
lin
co S
avin
gs B
ank
Ltd
Cey
lin
co C
olo
ure
d S
ton
e (P
vt)
Ltd
.
Op
enar
c G
lob
al S
olu
tio
ns
(Pvt
) L
td.
Les
s- P
rovi
sio
n f
or
Dim
inu
tio
n i
n V
alu
e
20
11
20
10
15.b
.1. Th
e in
vest
men
t m
ade
in t
he
Sera
ka
Inve
stm
ent
Lim
ited
is
10%
No
n c
um
ula
tive
No
n R
edee
mab
le P
refe
ren
ce S
har
es
15
.c I
nve
stm
ent
in U
nq
uo
ted
Deb
entu
res
h
eld
by
SM
B L
easi
ng
PL
C
Cey
lin
co A
uto
mo
bil
es L
td
Les
s- P
rovi
sio
n f
or
Dim
inu
tio
n i
n V
alu
e
17,6
00,0
00
(17,
600,
000) -
Hel
d b
y S
MB
Mo
ney
Bro
ker
s (P
vt)
Ltd
.
Ho
spit
al
Naw
alo
ka
Ho
spit
al P
LC
10,0
00
38,0
34
37,0
00
38,0
34
37,0
00
To
tal Q
uo
ted
L
ess
- P
rovi
sio
n f
or
Dim
inu
tio
n i
n v
alu
e (
319,
422)
Net
Car
ryin
g A
mo
un
t o
f In
vest
men
ts
9,77
6,36
0
3,58
8,22
8
Tota
l Car
ryin
g A
mou
nt o
f Quo
ted
Inve
stm
ents
(G
roup
)
300,
000
3,00
0,00
0
100,
000
1,00
0,00
0
5,65
5,90
0 48
,645
,300
30,0
00
300,
000
1,18
9,60
0 11
,896
,000
500,
000
5,00
0,00
0
45,0
00
450,
000
70,2
91,3
00
(70
,291
,300
)
As
at 3
1st
Dec
emb
er
As
at 3
1st
Dec
emb
er
As
at 3
1st
Dec
emb
er
Net
bo
ok
Val
ue
-
-
-
-
-
(17,
600,
000) -
-N
et b
oo
k V
alu
e-
- -
-
--
(1,
391,
997)
3,46
7,88
3 3,
489,
883
300,
000
3,00
0,00
0
100,
000
1,00
0,00
0
5,65
5,90
0 48
,645
,300
30,0
00
300,
000
1,18
9,60
0 11
,896
,000
500,
000
5,00
0,00
0
45,0
00
450,
000
70,2
91,3
00
(70
,291
,300
)
-
-
-
-
-
3,58
8,22
8
20
10
20
11
6,23
8,69
5
43
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
17,6
00,0
00
No
of
shar
es C
ost
Rs.
Mar
ket
Val
ue
Rs.
No
of
shar
es C
ost
Rs.
Mar
ket
Val
ue
Rs.
16
.aM
ove
men
t in
Lo
an L
oss
Pro
visi
on
Lo
an a
nd
Ad
van
ces
Spec
ific
Rs.
Spec
ific
Rs.
Bal
ance
as
at 1
st J
anu
ary
Rev
ersa
l of
Pro
visi
on
- L
oan
s
Rev
ersa
l of
Pro
visi
on
- L
ease
s
Tra
nsf
er f
rom
Co
nse
nt
Mo
tio
n t
o P
rovi
sio
n f
or
Lo
ans
Spec
ific
Rs.
Spec
ific
Rs.
16
.bM
ove
men
t in
In
tere
st i
n S
usp
ense
Bal
ance
as
at 1
st J
anu
ary
Inte
rest
Su
spen
ded
du
rin
g th
e ye
ar
Inte
rest
Rec
ove
red
du
rin
g th
e ye
ar
-
16
.cA
nal
ysis
of
Pro
visi
on
fo
r L
oan
Lo
sses
an
d
Inte
rest
in
Su
spen
se
Loan
Los
sP
rovi
sion
Rs.
Inte
rest
inSu
spen
seR
s.
Loan
Los
sP
rovi
sion
Rs.
Inte
rest
in S
uspe
nse
Rs.
GR
OU
P
Lo
ans
and
Ad
van
ces
Lea
se R
enta
ls R
ecei
vab
le
CO
MPA
NY
Lo
ans
and
Ad
van
ces
Lea
se R
enta
ls R
ecei
vab
le
As
at 3
1 D
ecem
ber
2011
As
at 3
1 D
ecem
ber
2010
LO
AN
S A
ND
AD
VA
NC
ES
Staff
Lo
ans
Oth
er L
oan
s
Les
s: L
oan
loss
Pro
visi
on
(N
ote
16
.c)
Inte
rest
in
su
spen
se (
No
te 1
6.c
)
16
689,
323
689,
323
593,
890,
427
597,
190,
427
594,
579,
750
597,
879,
750
(17
6,09
9,60
5) (
176,
099,
605)
(62
,578
,651
) (
62,5
78,6
51)
355,
901,
494
359,
201,
494
286,
254,
754
(23
,762
,936
)
(14
,116
,346
)
248,
375,
472
286,
254,
754
(23
,762
,936
)
(14
,116
,346
)
248,
375,
472
108,
516,
325
37,9
68,0
30
(49
,654
,343
)
96,8
30,0
12
-
108,
516,
325
37,9
68,0
30
(49
,654
,343
)
96,8
30,0
12
176,
099,
605
62,5
78,6
51
72,2
75,8
6734
,251
,361
248,
375,
472
96,8
30,0
12
176,
099,
605
62,5
78,6
51
72,2
75,8
6734
,251
,361
248,
375,
472
96,8
30,0
12
20
11
20
11
Rs.
Rs.
CO
MPA
NY
GR
OU
P
20
10
20
10
Rs.
Rs.
As
at 3
1st
Dec
emb
er
Bal
ance
as
at 3
1st
Dec
emb
er
2,80
7,59
1
532,
656,
460
535,
464,
051
(19
5,67
8,03
9)
(65
,730
,908
)
274,
055,
104
2,80
7,59
1
535,
716,
460
538,
524,
051
(19
5,67
8,03
9)
(65
,730
,908
)
277,
115,
104
248,
375,
472
19,6
79,6
24
5,15
9,63
9
15,4
21,6
42
288,
636,
377
Bal
ance
as
at 3
1st
Dec
emb
er
248,
375,
472
19,6
79,6
24
5,15
9,63
9
15,4
21,6
42
96,8
30,0
12
17,2
03,4
48
(12
,288
,969
)
101,
744,
491
96,8
30,0
12
17,2
03,4
48
(12
,288
,969
)
101,
744,
491
288,
636,
377
195,
678,
039
92,9
58,3
38
288,
636,
377
195,
678,
039
92,9
58,3
38
288,
636,
377
65,7
30,9
08
36,0
13,5
83
101,
744,
491
65,7
30,9
08
36,0
13,5
83
101,
744,
491
44
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
Sect
or w
ise
anal
ysis
of b
ank'
s cr
edit
por
tfol
io g
iven
bel
ow r
eflec
ts th
e ba
nk'
s ex
pos
ure
to c
redi
t ris
k in
the
vari
ous
sect
ors
of th
e ec
onom
y.
As
at 3
1 D
ecem
ber
Food
s, b
ever
ages
and
toba
cco
Agr
icul
ture
, agr
o bu
sine
ss a
nd fi
sher
ies
Text
iles
and
Wea
ring
app
arel
Woo
d an
d pa
per
prod
ucts
Rub
ber
and
leat
her
prod
ucts
Met
als,
che
mic
als
and
engi
neer
ing
Hot
els
Serv
ices
Oth
ers
16.d
Con
cen
trat
ion
of
Cre
dit
Ris
k
17L
EA
SE R
EN
TA
L R
EC
EIV
AB
LE
17.a
Bal
ance
as
at 3
1st D
ecem
ber
Less
: Une
arne
d In
com
e
Less
: Pre
-pai
d R
enta
ls
Less
: Int
eres
t in
Susp
ense
(N
ote
16.c
)
Less
: Loa
n Lo
ss p
rovi
sion
(N
ote
16.c
)
17.b
Lea
se R
enta
ls R
ecei
vabl
e a
fter
On
e Ye
ar &
w
ith
in F
ive
Year
s
Bal
ance
as
at 3
1st D
ecem
ber
Less
: Une
arne
d In
com
e
17.c
Lea
se R
enta
ls R
ecei
vabl
e a
fter
Fiv
e Ye
ars
From
th
e B
alan
ce S
hee
t da
te
Less
: Une
arne
d In
com
e
Lea
se R
enta
ls R
ecev
able
wit
hin
On
e Ye
ar
11,9
57,5
95
71,7
45,5
70
23,9
15,1
90
17,9
36,3
92
23,9
15,1
90
47,8
30,3
80
11,9
57,5
95
223,
894,
305
161,
427,
533
594,
579,
750
233,
570,
019
(17
,024
,591
)
(10
,814
,454
)
205,
730,
974
(34
,251
,361
)
(72
,275
,868
)
99,2
03,7
45
79,7
06,0
38
(20
,096
,238
)
59,6
09,8
00
6,82
7,89
0
(1,
520,
898)
5,30
6,99
2
11,9
57,5
95
71,7
45,5
70
23,9
15,1
90
17,9
36,3
92
23,9
15,1
90
47,8
30,3
80
11,9
57,5
95
227,
194,
305
161,
427,
533
597,
879,
750
233,
388,
692
(17
,024
,591
)
(10
,814
,454
)
205,
549,
647
(34
,251
,361
)
(72
,275
,868
)
99,0
22,4
18
79,7
06,0
38
(20
,096
,238
)
59,6
09,8
00
6,82
7,89
0
(1,
520,
898)
5,30
6,99
2
2011
2010
2011
2010
Rs.
Rs.
Rs.
Rs.
GR
OU
PC
OM
PAN
Y
1,20
2,58
1
304,
342,
780
1,81
6,69
0 - -
9,12
5,57
0
659,
530
39,8
49,2
30
181,
527,
670
538,
524,
051
326,
573,
581
(47
,698
,743
)
(10
,990
,811
)
267,
884,
027
(36
,013
,583
)
(92
,958
,338
)
138,
912,
106
326,
573,
581
(47
,698
,743
)
(10
,990
,811
)
267,
884,
027
(36
,013
,583
)
(92
,958
,338
)
138,
912,
106
289,
798,
343
(64
,676
,621
)
225,
121,
722
6,82
7,89
0
(1,
520,
898)
5,30
6,99
2
289,
798,
343
(64
,676
,621
)
225,
121,
722
6,82
7,89
0
(1,
520,
898)
5,30
6,99
2
45
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
1,20
2,58
1
304,
342,
780
1,81
6,69
0 - -
9,12
5,57
0
659,
530
36,7
89,2
30
181,
527,
670
535,
464,
051
Bal
ance
as
at 3
1st D
ecem
ber
20
11
20
11
Rs.
Rs.
CO
MPA
NY
GR
OU
P
20
10
20
10
Rs.
Rs.
18IN
VE
STM
EN
TS
IN S
UB
SID
IAR
Y C
OM
PA
NIE
S
Com
pan
y
Cos
t as
at
31/1
2/20
11R
s.
Pro
pert
yD
evel
opm
ent
Act
ivit
ies
SMB
Mon
ey B
roke
rs (
Pvt
) Lt
d M
oney
Mar
ket
Act
ivit
ies
51.0
0%1,
275,
000
12,7
50,0
00
Sto
ck B
roke
ring
Act
ivit
ies
Bal
ance
as
at 3
1st D
ecem
ber
12,7
50,0
00
19 I
NV
EST
ME
NT
S IN
ASS
OC
IAT
E C
OM
PAN
IES
SMB
-Ken
anga
Inv
estm
ent
Cor
pora
tion
Ltd
Inv
estm
ent
Ban
king
49.0
0%4,
900,
000
49,0
00,0
00
SMB
Rea
l Est
ate
Ltd.
49.0
0%61
7,27
730
,282
,196
SMB
Sec
urit
ies
(Pvt
) Li
mit
ed49
.50%
5,00
0,00
050
,000
,000
Bal
ance
as
at 3
1st D
ecem
ber
10,5
17,2
7712
9,28
2,19
6
Hol
din
gN
o of
Shar
es
2011
Pri
nci
ple
Act
ivit
y
2010
Cos
t as
at
31/1
2/20
10R
s.H
oldi
ng
No
ofSh
ares
51.0
0%1,
275,
000
12,7
50,0
00
12,7
50,0
00
49.0
0%4,
900,
000
49,0
00,0
00
49.0
0%61
7,27
730
,282
,196
49.5
0%5,
000,
000
50,0
00,0
00
10,5
17,2
7712
9,28
2,19
6
Gro
up
Bal
ance
as
at 1
st Ja
nuar
y
Shar
e of
Pro
fit A
fter
Tax
Div
iden
d R
ecei
ved
20IN
VE
STM
EN
T P
RO
PE
RT
IES
Bal
ance
as
at 1
st Ja
nuar
y
Add
: A
ddit
ions
dur
ing
the
year
Less
: D
ispo
sals
dur
ing
the
year
-
Bal
ance
as
at 3
1st D
ecem
ber
-13
6,70
3,66
9 -
18,8
09,0
04
(1,
969,
801)
153,
542,
872
53,2
16,0
00
(15
,647
,000
)
(24
8,60
0)
37,3
20,4
00
Bal
ance
as
at 3
1st D
ecem
ber
Pro
visi
ons
for
Impa
irm
ent L
oss
duri
ng th
e ye
ar
49,0
16,0
00
(15
,647
,000
)
(24
8,60
0)
33,1
20,4
00
20
11
20
11
Rs.
Rs.
CO
MPA
NY
GR
OU
P
20
10
20
10
Rs.
Rs.
Com
pan
y
-
-
-
-
-
a. b.P
rovi
sion
for
Dim
inut
ion
in V
alue
of
Inve
stm
ent i
n SM
B R
eal E
stat
e Lt
d.
Bal
ance
as
at 3
1st
Dec
embe
r
(3,
720,
958)
125,
561,
238
129,
282,
196
153,
542,
872
37,3
20,4
00
-
2,85
2,87
7 -
40,1
73,2
77
33,1
20,4
00
33,1
20,4
00 -
-
-
14,6
78,1
61
(6,
075,
000)
--
-
(3,
720,
958)
158,
425,
075
46
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
Pro
visi
on fo
r fa
ll in
val
ue o
f Inv
estm
ent
-
21P
RO
PE
RT
Y, P
LA
NT
AN
D E
QU
IPM
EN
T
CO
MPA
NY
Cos
t
Bal
ance
as
at 1
st Ja
nuar
y
Add
itio
ns d
urin
g th
e Ye
ar
Dis
posa
ls d
urin
g th
e Ye
ar
As
at
31st
Dec
embe
r
Acc
um
ula
ted
Dep
reci
atio
n
Bal
ance
as
at 1
st Ja
nuar
y
Cha
rge
for
the
year
As
at
31st
Dec
embe
r
Net
boo
k va
lue
as a
t 31.
12.1
1
31.1
2.20
11
Tota
l
Rs
Net
boo
k va
lue
as a
t 31.
12.1
0
Com
pute
r
Equ
ipm
ent
Rs
Offi
ce m
ach
ine
& e
quip
men
t
Rs
Furn
itu
re
& F
itti
ngs
Rs
Mot
or
Veh
icle
s
Rs
31.1
2.20
10
Tota
l
Rs
75,5
04,2
12
20.a
Det
ails
of
Inve
stm
ent
Pro
per
ties
2011
2010
2010
Rs.
Rs.
Rs.
Pro
per
ty L
ocat
ion
Kad
uwel
a, M
alam
beD
orak
umbu
ra, K
urun
egal
a
Mal
abe
Aha
ngam
a
Cos
tM
arke
t Val
ueC
ost
Mar
ket V
alue
Cos
tM
arke
t Val
ueC
ost
Mar
ket V
alue
2011
Rs.
Rs.
Rs.
Rs.
Rs.
CO
MPA
NY
GR
OU
P
32,7
00,0
0032
,700
,000
32,7
00,0
0032
,700
,000
32,7
00,0
0032
,700
,000
32,7
00,0
0032
,700
,000
669,
000
420,
400
669,
000
420,
400
4,20
0,00
04,
200,
000
4,20
0,00
04,
200,
000
40,4
21,8
7740
,173
,277
37,5
69,0
0037
,320
,400
33,3
69,0
0033
,120
,400
33,3
69,0
0033
,120
,400
40,5
89,1
3512
,401
,393
15,0
20,7
1212
,843
,100
80,8
54,3
40
1,64
3,00
01,
733,
275
3,68
9,66
3-
7,06
5,98
8
- -
- (
850,
000)
(85
0,00
0)
Dis
posa
ls
-
42,2
32,1
8514
,134
,668
18,7
10,3
7511
,993
,100
87,0
70,3
28
39,3
81,4
06
576,
150
39,9
57,5
56
2,27
4,62
9
1,20
7,72
9
GR
OU
P
Cos
t
Bal
ance
as
at 1
st Ja
nuar
y
Add
itio
ns d
urin
g th
e Ye
ar
Dis
posa
ls d
urin
g th
e Ye
ar
As
at
31st
Dec
embe
r
Acc
um
ula
ted
Dep
reci
atio
n
Bal
ance
as
at 1
st Ja
nuar
y
Cha
rge
for
the
year
As
at
31st
Dec
embe
r
Net
boo
k va
lue
as a
t 31.
12.1
1
Net
boo
k va
lue
as a
t 31.
12.1
0
Dis
posa
ls
31.1
2.20
11
Tota
l
Rs
Com
pute
r
Equ
ipm
ent
Rs
Offi
ce m
ach
ine
& e
quip
men
t
Rs
Furn
itu
re
& F
itti
ngs
Rs
Mot
or
Veh
icle
s
Rs
31.1
2.20
10
Tota
l
Rs
669,
000
420,
400
669,
000
420,
400
2,85
2,87
72,
852,
877
5,45
7,12
8
(10
7,00
0)
80,8
54,3
40
11,1
32,3
11
13,6
12,7
10
7,48
3,58
7 71
,610
,014
68
,047
,694
180,
268
550,
803
1,44
4,34
1 2,
751,
562
3,66
9,32
0 -
-
(
495,
833)
(49
5,83
3) (
107,
000)
11,3
12,5
79
14,1
63,5
13
8,43
2,09
5 73
,865
,743
71
,610
,014
2,82
2,08
9 4,
546,
862
3,56
1,00
5 13
,204
,585
1,26
9,08
2 1,
408,
002
5,35
9,51
3 9,
244,
326
42,3
31,8
18
15,3
49,0
37
16,3
24,5
20
12,9
10,0
64
86,9
15,4
39
80,6
44,3
41
1,64
3,05
0 1,
743,
630
3,68
9,66
3 -
7,
076,
343
6,37
8,09
8
-
-
-
(85
0,00
0) (
850,
000)
(10
7,00
0)
43,9
74,8
68
17,0
92,6
67
20,0
14,1
83
12,0
60,0
64
93,1
41,7
82
86,9
15,4
39
40,9
01,6
36
13,3
59,8
55
14,3
46,3
26
7,48
8,05
1 76
,095
,868
72
,150
,414
640,
827
393,
498
702,
177
1,45
7,73
4 3,
194,
236
4,05
2,45
4 -
-
-
(
495,
833)
(49
5,83
3) (
107,
000)
41,5
42,4
63
13,7
53,3
53
15,0
48,5
03
8,44
9,95
2 78
,794
,271
76
,095
,868
2,43
2,40
5 3,
339,
314
4,96
5,68
0 3,
610,
112
14,3
47,5
11
-
1,43
0,18
2 1,
989,
183
1,97
8,19
4 5,
422,
012
10,8
19,5
71
47
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
22O
TH
ER
ASS
ET
S
Dep
osit
s &
Pre
paym
ents
Lan
d St
ock
-Rea
l Est
ate
Oth
er A
sset
s
23D
EF
ER
RE
D T
AX
AT
ION
Bal
ance
as
at 1
st Ja
nuar
y
Rev
ersa
l mad
e du
ring
the
year
Bal
ance
as
at 3
1st D
ecem
ber
(Not
e 10
.c)
24B
OR
RO
WIN
GS
Pro
mis
sory
Not
es
Refi
nanc
e B
orro
win
gs
Oth
er B
orro
win
gs
3,79
9,66
5
1,69
1,85
3
25,4
77,6
69
30,9
69,1
87 - - -
337,
638,
071
5,17
6,44
8
10,0
00,0
00
352,
814,
519
464,
780
2,61
8,05
374
,744
,478
77,8
27,3
11
25O
TH
ER
LIA
BIL
ITIE
S
Acc
rued
Exp
ense
sP
rovi
sion
for
Ret
irem
ent b
enefi
t obl
igat
ions
(N
ote
25a)
O
ther
s
20
11
Rs.
CO
MPA
NY
GR
OU
P
20
10
20
10
Rs.
Rs.
As
at 3
1 D
ecem
ber
25a
Pro
visi
on fo
r R
etir
emen
t be
nefi
t ob
liga
tion
s
Bal
ance
as
at 1
st Ja
nuar
yP
rovi
sion
for
the
year
Paym
ents
dur
ing
the
year
Bal
ance
as
at 3
1st D
ecem
ber
2,97
5,65
330
0,00
0
(65
7,60
0)
2,61
8,05
3
Sala
ry I
ncre
men
t Rat
e
8.5%
Dis
coun
t Rat
e
9.1
5%R
etir
emen
t Age
55
yea
rs
3,79
9,66
5
1,69
1,85
3
28,6
98,9
94
34,1
90,5
12
471
,067
(249
,397
)
221,
670
337,
488,
071
5,17
6,44
8
10,0
00,0
00
352,
664,
519
779,
519
3,16
4,65
975
,113
,136
79,0
57,3
14
20
11
Rs.
3,35
1,29
0
3,16
4,65
9
470,
969
(657
,600
)
5,34
3,94
8
1,20
3,52
0
32,5
71,7
56
39,1
19,2
24
5,34
3,94
8
1,20
3,52
0
29,6
17,9
30
36,1
65,3
98
221,
670
(64
,222
)
157,
448
226,
233,
546
5,17
6,44
8
16,6
72,0
00
248,
081,
994
226,
233,
546
5,17
6,44
8
16,6
72,0
00
248,
081,
994
639,
183
297,
411
5,79
5,74
4 4,
349,
048
91,8
08,2
7089
,947
,623
98,2
43,1
9794
,594
,082
3,16
4,65
9 2,
618,
053
5,28
1,04
8 4,
380,
958
(2,
649,
963)
(2,
649,
963)
5,79
5,74
4 4,
349,
048
26D
EB
EN
TU
RE
S
26a
Mov
emen
t I
n D
eben
ture
s
Bal
ance
as
at 1
st Ja
nuar
yA
dd: I
ssue
d d
urin
g th
e pe
riod
Less
: Rep
aym
ents
dur
ing
the
peri
od
Bal
ance
as
at 3
1st D
ecem
ber
115,
176,
500
115,
176,
500
115,
176,
500
115,
176,
500
231,
661,
500 -
(
116,
485,
000)
115,
176,
500
231,
661,
500 -
(
116,
485,
000)
115,
176,
500
109,
193,
093
109,
193,
093
109,
193,
093
109,
193,
093
115,
176,
500
(5,
983,
407)
(5,
983,
407)
109,
193,
093
109,
193,
093
115,
176,
500 - - -
20
11
Rs.
CO
MPA
NY
GR
OU
P
20
10
20
10
Rs.
Rs.
As
at 3
1 D
ecem
ber
20
11
Rs.
48
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
The
follo
win
g as
sum
ptio
ns w
ere
used
in v
alui
ng t
he r
etir
emen
t defi
ned
bene
fits
oblig
atio
n us
ing
grat
uity
form
ula
met
hod
as r
equi
red
by S
LAS
16 -
“E
mpl
oyee
Ben
efits
”
The
abov
e de
ferr
ed t
ax a
sses
t ha
s be
en r
ecog
nize
d in
res
pect
of
the
subs
idia
ry, S
MB
Mon
ey B
roke
rs (
Pri
vate
) Li
mit
ed s
ince
the
man
agem
ent
expe
cts
adeq
uate
taxa
ble
profi
ts in
the
futu
re in
res
pect
of t
he s
ubsi
diar
y.
20
11
Rs.
CO
MPA
NY
GR
OU
P
20
10
20
10
Rs.
Rs.
As
at 3
1 D
ecem
ber
20
11
Rs.
20
11
20
11
Rs.
Rs.
20
10
20
10
Rs.
Rs.
CO
MP
AN
YG
RO
UP
As
at 3
1 D
ecem
ber
- - -
- - -
28SH
AR
E A
PP
LIC
AT
ION
MO
NE
Y
STA
TE
D C
AP
ITA
L
826,
486,
514
Vot
ing
Ord
inar
y Sh
ares
560,
000,
000
Non
Vot
ing
Ord
inar
y Sh
ares
29ST
AT
UT
OR
Y R
ESE
RV
EB
alan
ce a
s at
1st
Janu
ary
Tran
sfer
s m
ade
duri
ng th
e ye
ar
Bal
ance
as
at 3
1st D
ecem
ber
770,
950,
296
376,
000,
000
1,14
6,95
0,29
6
1,23
9,77
7
8,61
8,10
8
9,85
7,88
5
770,
950,
296
376,
000,
000
1,14
6,95
0,29
6
1,23
9,77
7
8,6
18,1
08
9,85
7,88
5
The
stat
utor
y R
eser
ve h
as b
een
crea
ted
duri
ng th
e ye
ar 2
006
in a
ccor
danc
e w
ith
the
Fina
nce
Leas
ing
(Am
ende
d) A
ct N
o. 5
6 of
200
0 an
d 5%
of
the
net p
rofit
for
the
peri
od s
houl
d be
tran
sfer
red
to S
tatu
tory
Res
erve
Fun
d an
nual
ly.
20
11
20
11
Rs.
Rs.
20
10
20
10
Rs.
Rs.
CO
MPA
NY
GR
OU
P
As
at 3
1 D
ecem
ber
30
CO
MM
ITM
EN
TS
AN
D C
ON
TIN
GE
NC
IES
In th
e no
rmal
cou
rse
of b
usin
ess,
the
Com
pany
mak
es v
ario
us c
omm
itm
ents
and
incu
rs c
erta
in c
onti
ngen
t lia
bilit
ies
wit
h le
gal r
ecou
rse
to it
s cu
stom
ers.
No
mat
eria
l los
ses
are
anti
cipa
ted
as a
res
ult
of t
hese
tra
nsac
tion
s. Th
e C
ompa
ny h
as i
ssue
d R
s. 1
.5 M
n ba
nk
guar
ante
es a
gain
st
inve
stm
ents
as
at 3
1st D
ecem
ber
2011
31
PO
ST B
AL
AN
CE
SH
EE
T E
VE
NT
S
Ther
e ar
e no
eve
nts
occu
rred
aft
er t
he B
alan
ce S
heet
dat
e w
hich
req
uire
adj
ustm
ents
/dis
clos
ures
in
the
Fina
ncia
l Sta
tem
ents
oth
er t
han
the
allo
tmen
t of
sha
res
for
the
valu
e of
Rs.
408
,533
,138
for
the
exe
cuti
on o
f w
arra
nts
issu
ed w
ith
the
Rig
hts
(Ord
inar
y V
otin
g &
Ord
inar
y N
on
Vot
ing)
. Ths
incl
udes
365
,280
,258
vot
ing
shar
es a
t R
s. 1
/- p
er s
hare
for
the
valu
e of
Rs.
365
,280
,258
and
54,
066,
101
Non
-vot
ing
shar
es a
t 0.
80
per
shar
e fo
r th
e va
lue
of R
s. 4
3,25
2,88
0.
- -
770,
950,
296
770,
950,
296
332,
105,
128
332,
105,
128
376,
000,
000
376,
000,
000
42,4
61,3
1142
,461
,311
(63
6,41
9,32
1) (
636,
419,
321)
510,
530,
975
510,
530,
975
374,
566,
439
374,
566,
439
Ord
inar
y V
otin
g Sh
are
App
licat
ion
s -W
arre
nts
Ord
inar
y N
on V
otin
g Sh
are
App
licat
ion
s-W
arre
nts
Cap
ital
Red
ucti
on
9,85
7,88
5 9,
857,
885
9,85
7,88
5 9,
857,
885
49
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
27
Co
mp
any
carr
ied
ou
t a
cap
ital
red
uct
ion
by
sett
ing
off
th
e b
rou
ght
forw
ard
loss
of
Rs.
636
,419
,321
aga
inst
th
e st
ated
cap
ital
du
rin
g th
e ye
ar, w
hic
h h
as b
een
ap
pro
ved
by
the
shar
eho
lder
s at
th
e E
GM
hel
d o
n 2
2nd
No
vem
ber
201
1
20
11
20
11
Rs.
Rs.
20
10
20
10
Rs.
Rs.
CO
MP
AN
YG
RO
UP
As
at 3
1 D
ecem
ber
--
The
free
war
rant
s w
hich
wer
e is
sued
wit
h th
e O
rdin
ary
Vot
ing
Shar
es a
nd O
rdin
ary
Non
Vot
ing
Shar
es th
roug
h th
e ri
ghts
issu
e in
the
year
201
0 w
ere
conv
erte
d in
to O
rdin
ary
Vot
ing
Shar
es a
nd O
rdin
ary
Non
Vot
ing
Shar
es o
f the
Com
pany
in D
ecem
ber
2011
on
the
follo
win
g ba
sis.
War
rant
s (O
rdin
ary
Vot
ing
Shar
es)
- in
the
rati
o of
1 w
arra
nt fo
r 1
righ
t, at
a p
rice
of R
s. 1
/- p
er s
hare
.
War
rant
s (O
rdin
ary
Non
Vot
ing
Shar
es)
- in
the
rati
o of
1 w
arra
nt fo
r 1
rig
ht, a
t a p
rice
of R
s. 0
.80
per
shar
e.
As
a re
sult
of t
he s
aid
conv
ersi
on o
f w
arra
nts,
Rs.
332
,105
,128
and
Rs,
42,
461,
311
was
infu
sed
in t
o th
e st
ated
cap
ital
of
the
com
pany
thr
ough
O
rdin
ary
(Vot
ing)
sha
res
and
Ord
inar
y (N
on V
otin
g) s
hare
s re
spec
tive
ly, a
s at
31s
t Dec
embe
r 20
11.
-
CompanyName of DirectorDetails of Financial Dealings
Transactions with Associate Companies
SMB Real Estate Ltd.Term Loan
Investment on Debentures
Kenanga Investment Corporation LtdDividend Income
Royalty income
Professional Fee
Transaction with Subsidiaries
SMB Money Brokers (Pvt) Ltd.Mr.R.S.W. SenanayakaInvestment in Promissory Notes
Easy Payment Loan
Transaction with other Related Companies
Corporate Finance & Capital Market LtdMr.R.S.W. Senanayaka
Mr.M.S.I.PeirisEasy Payment Loan
Proceed from Disposal of Investment in SMB Money Brokers Ltd
Disposal Proceeds of Treasury Bonds & Others
Other receivable
Professional Fee
Balanceas at 31.12.2010
Rs.
9,469,000
(9,469,000)
(87,719)
3,300,283
4,436,029
4,225,387
12,448,250
5,182,077
10,893,100
-
Received/(Paid) 2011
Rs.
-
-
1,896,300
781,730
(489,250)
-
240,000
-
-
-
-
-
(556,122)
Balanceas at 31.12.2011
Rs.
9,469,000
(9,236,000)
-
-
(87,719)
3,060,028
4,225,387
12,448,250
5,182,076
10,893,100
32.1 Transactions with Related Parties
32. Related Party Disclosures
50
NOTES TO THE FINANCIAL STATEMENTSContinued
Provision for Bad & Doubtful Debts(28,523,427) (28,523,427)
Mr. R.S.W. Senanayake
Mr. M.S.I. Peiris
Mr. R.S.W. Senanayake
Mr. M.S.I. Peiris
Finance Lease
Ceylinco Maini (Pvt)LtdMr.R.S.W. Senanayaka
Mr M. S. I. Peiris
Quick Fund Loan
Provision for Bad & Doubtful Debts
1,350,043
(1,350,043)
-
-
1,350,043
(1,350,043)
Ceylinco Automobiles LtdMr.R.S.W. SenanayakaFinance Lease
Mr. M.S.I PeirisQuick Cash Loan
Other receivable
Salaries Receivable
Cal-Commission
Debenture Interest
Provision for Bad & Doubtful Debts
The Magnum FundMr.R.S.W. Senanayaka
Mr M. S. I. Peiris
Quick Cash Loan
EP Loan Interest Income
Quick Fund Loan
Other receivable
Salaries Receivable
Provision for Bad & Doubtful Debts
CompanyName of DirectorDetails of Financial Dealings
666,231
16,549,925
4,394,850
2,682,038
600,000
17,600,000
(38,330,071)
1,744,976
1,420,384
342,896
123,868
2,372,300
-
-
15,150
(38,330,071)
-
-
-
666,231
16,549,925
4,394,850
2,682,038
600,000
17,600,000
-
1,744,976
1,420,384
342,896
123,868
2,372,300
-
51
NOTES TO THE FINANCIAL STATEMENTSContinued
(2,496,167) (2,496,167)
Balanceas at 31.12.2010
Rs.
Received/(Paid) 2011
Rs.
Balanceas at 31.12.2011
Rs.
34M
AT
UR
ITY
AN
ALY
SIS
34a.
Com
pan
y
An
an
alys
is o
f the
tota
l ass
ets
empl
oyed
as
at 3
1st D
ecm
eber
201
1 ba
sed
on th
e re
mai
nin
g pe
riod
at t
he B
alan
ce S
heet
dat
e to
the
resp
ecti
veco
ntra
ctua
l mat
urit
y da
tes
is g
iven
bel
ow.
Up
to 3
Mon
ths
Rs.
3 to
12
Mon
ths
Rs.
1 to
3 Y
ears
Rs.
3 to
5 Y
ears
Rs.
Mor
e th
an 5
Yea
rsR
s.To
tal
Rs.
32.3
TR
AN
SAC
TIO
NS
WIT
H K
EY
MA
NA
GE
ME
NT
PE
RSO
NN
EL
(b)
post
em
ploy
emen
t ben
efits
;78
,568
49,9
43
The
Boa
rd o
f Dir
ecto
rs o
f the
Com
pany
are
con
side
red
as th
e K
ey M
anag
emen
t per
sonn
el o
f the
Com
pany
. The
Com
pany
has
mad
e fo
llow
ing
paym
ents
to th
e K
ey M
anag
emen
t per
sonn
el d
urin
g th
e ye
ar,
Inte
rest
Ear
nin
g A
sset
s
Loan
s &
Adv
ance
s 12
5,25
5,53
5 25
,261
,809
53
,646
,291
31
,664
,752
41
,286
,716
27
7,11
5,10
4
Leas
e R
enta
l Rec
ieva
ble
72,0
73,6
22
66,8
38,4
84
153,
632,
788
71,4
88,9
34
5,30
6,99
2 36
9,34
0,82
0
Bal
ance
s w
ith
bank
s -
72
,713
,769
-
-
-
72
,713
,769
Non
In
tere
st E
arn
ing
Ass
ets
Cas
h in
han
d40
7,99
2,14
4 -
-
-
-
40
7,99
2,14
4
Inve
stm
ents
-
144,
619,
716
-
-
-
144,
619,
716
Inve
stm
ent P
rope
rty
-
33,1
20,4
00
-
-
33,1
20,4
00
Pro
pert
y , P
lant
& e
quip
men
t -
-
-
13
,204
,585
-
13
,204
,585
Oth
er A
sset
s -
36
,165
,398
-
-
-
36
,165
,398
Tota
l A
sset
s60
5,32
1,30
1 34
5,59
9,17
6 24
0,39
9,47
9 11
6,35
8,27
1 46
,593
,708
1,
354,
271,
936
52
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
(a)
shor
t-te
rm e
mpl
oyee
ben
efits
;3,
678,
083
3,14
6,86
5
78,5
6849
,943
3,10
0,10
02,
786,
864
20
11
Rs.
CO
MPA
NY
GR
OU
P
20
10
20
10
Rs.
Rs.
20
11
Rs.
32.2
SMB
Lea
sin
g P
LC a
cts
as c
usto
dian
for
som
e of
the
blo
cks
of t
he b
elow
men
tion
ed la
nds
as
at 3
1st
Dec
embe
r 20
11, w
hich
wer
e pu
rcha
sed
by S
MB
Rea
l Est
ate
Lim
ited
Pro
ject
Nam
e
Dee
d N
o.
Wel
igam
a
56
8
Ah
anga
ma
60
8
Pal
agam
a
15
Mal
abe
22
Up
to 3
Mon
ths
Rs.
3 to
12
Mon
ths
Rs.
1 to
3 Y
ears
Rs.
3 to
5 Y
ears
Rs.
Mor
e th
an 5
Yea
rsR
s.To
tal
Rs.
An
an
alys
is o
f th
e to
tal
liab
ilit
ies
emp
loye
d a
s at
31
st D
ecm
eber
20
11
bas
ed o
n t
he
rem
ain
ing
per
iod
at
the
Bal
ance
Sh
eet
dat
eto
th
e re
spec
tive
co
ntr
actu
al m
atu
rity
dat
es i
s g
iven
bel
ow
.
Inte
rest
bea
rin
g li
abil
itie
s
Bor
row
ings
177,
488,
990
40,5
63,5
98
26,1
33,2
06
2,80
6,00
1 1,
090,
200
248,
081,
995
Deb
entu
res
14,1
93,0
93
95,0
00,0
00
-
109,
193,
093
Ban
k O
verd
raft
50,0
84,6
78
-
-
-
-
50,0
84,6
78
Non
In
tere
st b
eari
ng
liab
ilit
ies
Oth
er li
abili
ties
70,8
42,0
90
14,8
83,5
46
8,28
2,07
0 42
2,30
0 16
4,07
4 94
,594
,080
Shar
ehol
ders
Fun
ds -
-
-
-
85
2,31
8,09
0 85
2,31
8,09
0
Tota
l Lia
bilit
ies
312,
608,
851
55,4
47,1
44
34,4
15,2
76
98,2
28,3
01
853,
572,
364
1,35
4,27
1,93
6
34.b
Gro
up
An
an
alys
is o
f th
e to
tal a
sset
s em
plo
yed
as
at 3
1st
Dec
meb
er 2
011
bas
ed o
n t
he
rem
ain
ing
per
iod
at
the
Bal
ance
Sh
eet
dat
e to
the
resp
ecti
ve c
on
trac
tual
mat
uri
ty d
ates
is
give
n b
elo
w.
Up
to 3
Mon
ths
Rs.
3 to
12
Mon
ths
Rs.
1 to
3 Y
ears
Rs.
3 to
5 Y
ears
Rs.
Mor
e th
an 5
Yea
rsR
s.To
tal
Rs.
Inte
rest
Ear
nin
g A
sset
s
Loan
s &
Adv
ance
s 12
5,25
5,53
5 25
,261
,809
53
,646
,291
28
,844
,752
41
,286
,716
27
4,29
5,10
3
Leas
e R
ecie
vabl
e72
,073
,623
66
,838
,484
15
3,63
2,78
8 71
,488
,934
5,
306,
992
369,
340,
821
Bal
ance
s w
ith
bank
s &
Fin
. Cos
’ -
78
,243
,213
-
-
-
78
,243
,213
Trea
sury
Bill
s /
Bon
ds2,
200,
000
-
-
-
-
2,20
0,00
0
Non
In
tere
st E
arn
ing
Ass
ets
Cas
h in
han
d40
8,33
6,07
5 -
-
-
-
40
8,33
6,07
5
Inve
stm
ents
9,77
6,36
0 15
8,42
5,07
5 -
-
-
16
8,20
1,43
5
Inve
stm
ent P
rope
rty
-
-
40,1
73,2
77
-
-
40,1
73,2
77
Pro
pert
y , P
lant
& e
quip
men
t -
-
-
14
,347
,511
-
14
,347
,511
Oth
er A
sset
s -
39
,276
,672
-
-
-
39
,276
,672
Tota
l A
sset
s61
7,64
1,59
3 36
8,04
5,25
324
7,45
2,35
6 11
4,68
1,19
7 46
,593
,708
1,
394,
174,
107
53
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
An
an
alys
is o
f th
e to
tal l
iab
ilit
ies
emp
loye
d a
s at
31s
t D
ecm
eber
201
1 b
ased
on
th
e re
mai
nin
g p
erio
d a
t th
e B
alan
ce S
hee
t d
ate
to t
he
resp
ecti
ve c
on
trac
tual
mat
uri
ty d
ates
is g
iven
bel
ow.
Inte
rest
bea
rin
g li
abil
itie
s
Bor
row
ings
177,
488,
989
40,5
63,5
98
26,1
33,2
06
2,80
6,00
1 1,
090,
200
248,
081,
994
Deb
entu
res
14,1
93,0
93
-
-
95,0
00,0
00
-
109,
193,
093
Ban
k O
verd
raft
50,0
84,6
78
-
-
-
-
50,0
84,6
78
Non
In
tere
st b
eari
ng
liab
ilit
ies
Oth
er li
abili
ties
73,2
31,0
10
16,1
43,7
438,
282,
070
422,
300
164,
074
98,2
43,1
97
Shar
ehol
ders
Fun
ds -
-
-
-
88
0,91
3,44
0 88
0,91
3,44
0
Min
orit
y In
tere
st -
-
-
-
7,
657,
705
7,65
7,70
5
Tota
l Lia
bilit
ies
314,
997,
769
56,7
07,3
4134
,415
,277
98
,228
,300
88
9,82
5,41
9 1,
394,
174,
107
Up
to 3
Mon
ths
Rs.
3 to
12
Mon
ths
Rs.
1 to
3 Y
ears
Rs.
3 to
5 Y
ears
Rs.
Mor
e th
an 5
Yea
rsR
s.To
tal
Rs.
54
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SC
onti
nu
ed
RevenueInterest
Commissions & Fee Income
Other
Total Revenue from External Customers
Total Revenue
Less:Depreciation charged for the year
Profit/(Loss) from Operations
Income tax expense
Profit/(Loss) After Income tax
Net Profit/(Loss) for the year
OTHER INFORMATION
Segment assets
Less: Accumulated Depreciation
Investment in Subsidiaries
Total Assets
Segmental liabilities
Shareholders Funds
Minority Interest
Total liabilities
35. SEGMENTAL REPORTING-GROUP
20112010Rs.Rs.
47,906,771
11,948,334
6,369,544
66,224,650
66,224,650
17,919,528
1,775,793
16,143,735
4,174,259
11,969,476
11,969,476
526,295,948
33,464,987
12,750,000
505,580,961
258,964,996
242,694,918
-
501,659,914
Loans
30,522,839
763,831
7,295,209
38,581,879
38,581,879
(6,786,384)
1,035,768
(7,832,153)
3,629,014
(11,461,167)
(11,461,167)
482,238,488
25,796,637
-
456,441,851
165,530,511
288,404,267
-
453,934,777
20112010Rs.Rs.
41,874,096
10,443,736
5,567,458
57,885,289
57,885,289
13,263,239
1,561,957
11,701,282
1,173,137
10,528,145
10,528,145
462,920,846
29,435,226
-
433,485,621
227,781,148
213,470,268
441,251,415
Leasing
-
40,924,034
1,024,121
9,781,179
51,729,334
51,729,334
(15,283,417)
1,402,132
(16,685,550)
-
(16,685,550)
(16,685,550)
646,569,746
34,587,295
-
611,982,451
221,937,948
386,683,100
608,621,048
-
20112010Rs.Rs.
17,010,330
2,149,971
19,160,301
19,160,301
6,200,927
714,704
5,486,223
668,867
4,817,356
4,817,356
211,818,371
13,468,656
-
198,349,716
104,225,662
97,677,443
201,903,105
Money Brokering
-
-
40,192,373
-
40,192,373
40,192,373
(6,962,465)
746,336
(7,708,801
-
(7,708,801)
(7,708,801)
344,160,144
18,410,339
-
325,749,805
118,134,504
205,826,073
323,960,577
-
-
20112010Rs.Rs.
300,000
1,969,801
-
2,269,801
2,269,801
2,641,792
-
-
-
-
-
-
-
-
-
3,450,000
12,184,157
8,236,021
23,870,178
Eliminations/Unallocated
-
-
-
-
-
-
-
-
-
-
-
7,657,705
-
-
7,657,705
-
-
-
20112010Rs.Rs.
89,480,867
37,432,598
34,741,902
4,052,454
33,331,240
6,016,263
27,314,977
27,314,977
1,201,035,166
76,368,868
12,750,000
1,137,416,298
587,521,806
541,658,472
8,236,021
1,137,416,298
Consolidated
14,086,973
141,000,438
141,000,438
71,446,873
41,980,325
(29,032,267)
3,194,236
(32,226,503)
3,629,014
(35,855,517)
(35,855,517)
1,472,986,378
78,794,271
-
1,394,174,107
505,602,962
880,913,440
7,657,705
1,394,174,107
17,076,388
130,503,586
130,503,586
55
NOTES TO THE FINANCIAL STATEMENTS
For t
he y
ear e
nded
31s
t Dec
embe
r
Ope
rati
ng R
esul
ts
Rev
enue
Inte
rest
Inc
ome
Inte
rest
Exp
ense
Ope
rati
ng E
xpen
ses
& P
rovi
sion
Profi
t/(L
oss)
bef
ore
Taxa
tion
& V
AT
VA
T &
Tax
atio
n
Profi
t/(L
oss)
aft
er T
axat
ion
& V
AT
As
at 3
1st D
ecem
ber
Ass
ets
Cas
h &
Sho
rt T
erm
Fun
ds
Inve
stm
ents
Bill
s of
Exc
hang
e
Loan
s &
adv
ance
s
Leas
e R
enta
ls R
ecei
vabl
es
Inve
stm
ent i
n A
ssoc
iate
Co.
Inve
stm
ent i
n Su
bsid
iary
Co.
Inte
rest
Rec
eiva
ble
Inve
stm
ent P
rope
rty
Pro
pert
y, P
lant
& E
quip
men
t
Oth
er A
sset
s
Inta
ngib
le A
sset
s
Equ
ity
& L
iabi
litie
s
Stat
ed C
apit
al
O
rdin
ary
Shar
es
S
hare
Pre
miu
m
Res
erve
s
Bor
row
ings
Gro
up B
alan
ces
Paya
ble
Oth
er L
iabi
litie
s
Deb
entu
res
Inco
me
Gro
wth
(%
)
Pro
pert
y, P
lant
& E
quip
men
t
to S
hare
hold
ers'
Fund
(%
)
Tota
l Ass
ets
to
Sha
reho
lder
s' Fu
nd (
tim
es)
Net
Ass
ets
per
Shar
e (R
s.)
Bas
ic E
arni
ng /
(Lo
ss)
Per
Shar
e
2002
(Rs.
'000
)
472,
481
377,
445
(320
,189
)
(133
,407
)
2,28
0 -
2,28
0
3,15
7
1,22
6,83
8
43,2
20
571,
910
1,28
8,16
8 -
76,2
25
- -
16,1
96
259,
831
8,83
5
3,49
4,38
0
333,
773
13,2
44
(217
,129
)
2,88
9,28
5
149,
500
31,6
58
294,
049
3,49
4,38
0
44.5
6
12.4
7
111.
59
3.89
(1.6
7)
2003
(Rs.
'000
)
565,
768
424,
171
(332
,344
)
(205
,432
)
10,7
90 794
9,99
6
(122
,572
)
316,
816
32,3
73
658,
254
1,55
4,55
5 -
97,1
00
-
11,1
89
15,8
11
222,
524
2,78
6,05
0
333,
773
13,2
44
(207
,132
)
1,89
2,59
5
90,3
00
29,4
93
633,
778
2,78
6,05
1
19.7
4
11.3
0
19.9
2
4.19
0.07
2004
(Rs.
'000
)
557,
668
506,
640
(369
,130
)
(143
,288
)
22,2
03
2,77
7
19,4
26
22,0
16
428,
024
4,00
0
974,
280
1,88
9,88
1
1,20
0
112,
100
22,2
97
11,1
89
27,0
98
100,
741
3,59
2,82
6
333,
773
13,2
44
(187
,707
)
1,98
7,67
7
209,
000
305,
202
931,
637
3,59
2,82
6
(1.4
3)
17.0
1
22.5
5
4.77
0.30
2005
(Rs.
'000
)
589,
173
541,
836
(399
,959
)
(128
,850
)
30,6
90
9,92
1
20,7
69
122,
247
814,
500
3,52
5
1,06
3,48
1
1,49
0,04
4
1,20
0
154,
068
40,2
96
11,1
89
24,1
32
67,8
42
3,79
2,52
4
445,
031
23,2
57
(175
,281
)
2,35
5,17
4
218,
000
295,
285
631,
058
3,79
2,52
4
5.65
8.24
12.9
4
6.58
0.58
2006
(Rs.
'000
)
515,
425
436,
047
(359
,235
)
(110
,889
)
31,8
59
6,99
4
24,8
65
30,4
08
673,
337 -
1,18
4,38
7
1,25
5,47
8 -
314,
547
51,5
38
23,1
87
20,9
83
66,4
93
3,62
0,35
8
545,
031
20,9
85
(159
,317
)
2,27
1,89
2
197,
500
246,
319
497,
948
3,62
0,35
8
(12.
52)
5.16
8.90
4.46
0.51
2007
(Rs.
'000
)
500,
998
424,
776
(400
,239
)
(85,
937)
2,69
9
(2,4
32)
267
60,2
62
288,
150 -
1,00
2,98
7
946,
615
49,0
00
319,
540
103,
636
27,5
05
11,9
47
123,
475
2,93
3,11
8
545,
031
20,7
55
(159
,050
)
1,74
7,76
2
153,
000
229,
893
395,
727
2,93
3,11
8
(2.8
0)
2.94
7.21
7.46
0.00
5
2008
(Rs.
'000
)
334,
661
295,
666
(410
,293
)
(506
,301
)
(581
,933
)
(35,
601)
(618
,676
)
10,0
69
124,
472 -
651,
872
545,
384
49,0
00
324,
197
253,
037
16,3
16
8,05
5
43,3
58
-
2,02
5,76
0
545,
031
20,7
55
(777
,725
)
1,72
1,26
8
197,
848
63,4
08
255,
174
2,02
5,76
0
(33.
20)
(3.8
0)
(9.5
6)
(3.8
9)
(11.
35)
2009
(Rs.
'000
)
391,
449
147,
132
(166
,315
)
(66,
868)
158,
266
-
158,
266
6,09
1
1,06
0
-
521,
997
256,
967
125,
560
12,7
50
81,5
00
49,0
16
7,45
7
106,
170
-
1,16
8,54
2
545,
031
20,7
55
(636
,117
)
680,
063
197,
848
129,
300
231,
662
1,16
8,54
2
16.9
7
(10.
60)
(16.
61)
(1.2
9)
0.23
--
--
-
2010
(Rs.
'000
)
124,
110
101,
718
(64,
732)
(59,
805)
19,4
43
-
14,0
95
297,
843
2,65
0
-
359,
201
117,
129
129,
282
12,7
50
41,5
03
33,1
20
9,24
4
98,7
99
-
1,10
6,83
1
1,12
6,19
5
20,7
55
(626
,730
)
393,
439 -
77,9
96
115,
176
1,10
6,83
1
(68.
28)
1.77
0.80
0.37
0.02
2011
(Rs.
'000
)
107,
938
70,6
64
(47,
609)
(95,
847)
(35,
518)
(3,9
37)
(42,
603) -
(42,
603)
407,
992
79,0
22
-
277,
115
369,
341
125,
561
12,7
50
-
33,1
20
13,2
05
36,1
65
-
1,35
4,27
1
1,50
0,76
2
20,7
55
(636
,419
)
(32,
780)
248,
082 -
144,
678
109,
193
1,35
4,27
1
(13.
03)
1.55
1.60
0.61
(0.0
3)
Min
orit
y In
tere
stP
rofit
/(Lo
ss)A
ttri
buta
ble
to S
hare
hode
rs
56
DE
CA
DE
AT
A G
LA
NC
E -
CO
MPA
NY
Fo
r th
e ye
ar e
nd
ed 3
1st
Dec
emb
er
Op
erat
ing
Res
ult
s
Rev
enu
e
Inte
rest
In
com
e
Inte
rest
Exp
ense
Op
erat
ing
Exp
ense
s &
Pro
visi
on
Pro
fit/
(Lo
ss)
bef
ore
tax
atio
n &
VA
T
Tax
atio
n &
VA
T
Pro
fit
Aft
er T
axat
ion
& V
AT
Min
ori
ty I
nte
rest
Pro
fit/
(Lo
ss)
Att
ribu
tabl
e to
Sh
areh
old
ers
Ass
ets
Cas
h &
Sh
ort
Ter
m F
un
ds
Inve
stm
ents
Bil
ls o
f E
xch
ange
Lo
ans
& a
dva
nce
s
Lea
se R
enta
ls R
ecei
vab
les
Inve
stm
ent
in A
sso
ciat
e C
o.
Inte
rest
Rec
eiva
ble
Inve
stm
ent
Pro
per
ty
Pro
per
ty, P
lan
t &
Eq
uip
men
t
Oth
er A
sset
s
Inta
ngi
ble
Ass
ets
Eq
uit
y &
Lia
bil
itie
s
Stat
ed C
apit
al
O
rdin
ary
Shar
es
S
har
e P
rem
ium
Res
erve
s
Shar
e A
pp
lica
tio
n
Min
ori
ty I
nte
rest
Bo
rro
win
gs
Gro
up
Bal
ance
s P
ayab
le
Oth
er L
iab
ilit
ies
Deb
entu
res
Cas
h F
low
Cas
h F
low
fro
m O
per
atin
g A
ctiv
itie
s
Cas
h F
low
fro
m I
nve
stin
g A
ctiv
itie
s
Cas
h F
low
fro
m F
inan
cin
g A
ctiv
itie
s
Net
In
crea
se o
r (D
ecre
ase)
in
Cas
h
and
Cas
h E
qu
vale
nts
Bas
ic E
arn
ing/
(L
oss
) P
er S
har
e
Ass
ets
Gro
wth
(%
)
Net
Ass
ets
Gro
wth
(%
)
Net
Ass
ets
Per
Sh
are
2007
(Rs.
'000
)
944,
079
804,
894
(619
,227
)
(288
,428
)
3,57
9 98
3,67
8
6,40
9
(2,7
32)
73,9
99
621,
520 -
972,
961
2,56
5,41
7
49,9
50
162,
676
27,5
05
47,5
76
265,
746
26,8
48
4,81
4,19
8
545,
031
20,7
55
73,6
20
3,13
1,18
9
153,
000
413,
800
506,
769
4,81
4,19
8
401,
175
156,
987
(465
,891
)
92,2
71
(0.0
5)
(9.6
4)
(0.5
5)
9.83
2008
(Rs.
'000
)
949,
473
859,
359
(763
,044
)
(843
,360
)
(656
,931
)
(44,
513)
(697
,079
)
(8,9
78)
(688
,101
)
17,6
36
493,
701 -
956,
320
1,98
7,19
1
54,3
15
325,
592
16,3
16
50,0
97
297,
978
25,4
10
4,22
4,55
7
545,
031
20,7
55
74,3
27
3,37
7,54
5
197,
848
386,
808
340,
309
4,22
4,55
7
(197
,132
)
163,
954
(23,
185)
17,6
36
(12.
62)
(12.
25)
(128
.42)
(2.7
9)
2009
(Rs.
'000
)
623,
059
378,
376
(290
,674
)
(250
,697
)
81,6
87
(1,5
16)
82,2
29
(10,
950)
82,2
29
7,24
4
13,2
36
-
521,
732
256,
967
136,
704
81,5
34
53,2
16
8,49
4
107,
849 -
1,18
6,97
6
545,
031
20,7
55
8,03
9
680,
063
197,
848
131,
645
231,
662
1,18
6,97
6
424,
444
543,
257
(972
,375
)
6,64
2
0.14
(71.
90)
(59.
10)
(1.1
4)
2010
(Rs.
'000
)
2011
(Rs.
'000
)
141,
000
102,
228
(64,
732)
(94,
041)
16,1
48 420
27,3
15 197
27,1
17
300,
580
12,8
89
-
355,
901
122,
436
153,
543
41,6
85
37,3
20
10,8
20
102,
242 -
1,13
7,41
6
1,12
6,19
5
20,7
55
8,23
6
352,
665 -
119,
680
115,
176
1,13
7,41
6
260,
125
410,
450
(7,0
01)
252,
713
0.03
(4.1
3)
(13.
78)
0.40
130,
504
71,4
47
(47,
609)
(125
,862
)
(28,
289)
(7,5
66)
(35,
855)
(578
)
(35,
277)
408,
336
90,2
20
274,
055
369,
341
158,
425 -
40,1
73
14,3
48
39,2
77
1,39
4,17
4
489,
776
20
,75
5
374,
566
(14,
042)
7,65
8
248,
082
148,
328
109,
193
1,39
4,17
4
-0.0
2
22.9
2
(56.
96)- - -
0.6
1
(18
5,9
63
,15
2)
(3,9
22
,30
0)
28
8,1
79
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4
98
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4,2
02
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31s
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of
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10
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10
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10
0.0
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10
0.0
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10
0.0
%
10
0.0
%
10
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%
10
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2010
Rs.”
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3,1
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2010
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2011
Rs.”
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2011
Rs.”
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Inte
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an
d s
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nco
me
101,
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102,
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71,4
47
Co
st o
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(56,
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(56,
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Oth
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22,3
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59,0
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fo
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35,0
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s45
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55.7
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72.4
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57,4
2251
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To
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ent
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6
To
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plo
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Sala
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, Wag
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nd
Oth
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31,5
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To
Len
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f C
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on
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29.3
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8,72
516
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To
Mai
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per
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Dep
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94,
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7
Ret
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Ret
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Lo
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14,0
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6.9
70,6
64
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37,2
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181)
55
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3
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7,08
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31,8
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55
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20
11
To
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Sta
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55.7
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2.9%
17.5
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23.4
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20
10
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58
VA
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Dr.
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17,5
70,8
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Mr.
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806,
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574,
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5,06
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4,00
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3,92
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564,
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3,77
6,63
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346,
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302,
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Mr.
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Mr.
BL
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Seyl
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1.71
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Mr.
JAW
Vic
tori
a6,
771,
200
1.21
%
Wal
dock
Mac
kenz
ie L
td /
Mr.
Lalin
Tus
ith
Sam
araw
ickr
ama
6,00
0,00
0 1.
07%
Wal
dock
Mac
kenz
ie L
td /
Mr.
SA
Gul
ahus
ein
5,92
9,84
0 1.
06%
8,00
0,00
01.
43%
Mr.
J J
Rav
indr
an5,
040,
000
0.90
%5,
040,
000
0.90
%
Mr.
A S
itha
tham
bala
m4,
869,
460
0.87
%
Mr.
HK
Pus
hpak
umar
a4,
555,
000
0.81
%
Mr.
MLA
Ben
edic
t4,
305,
000
0.77
%3,
684,
800
0.66
%
Mr.
RP
J R
ajap
aksh
a4,
200,
000
0.75
%
Mis
s S
Dur
ga4,
037,
000
0.72
%4,
385,
000
0.78
%
Mr.
AR
Fer
nand
o3,
900,
000
0.70
%
Dr.
CA
Tw
eren
bold
3,81
3,80
0 0.
68%
Mr.
BK
Sir
iman
na3,
630,
000
0.65
%3,
608,
000
0.64
%
Mr.
G D
orai
sam
y3,
500,
000
0.63
%
Mr.
Gaj
endr
an3,
104,
600
0.55
%
Mr.
WA
S W
eera
sing
he3,
033,
600
0.54
%
Mr.
AK
M E
diri
sing
he3,
020,
100
0.54
%
SUB
TO
TA
L16
6,95
1,48
5 29
.81%
151,
353,
546
27.0
3%
Oth
ers
393,
048,
515
70.1
9%40
8,64
6,45
472
.97%
TO
TA
L I
SSU
ED
SH
AR
E C
AP
ITA
L56
0,00
0,00
0 10
0.00
%56
0,00
0,00
010
0.00
%
59
Ord
inar
y N
on
Vo
tin
g –
Sh
areh
old
ing
as
at 3
1st
Dec
emb
er 2
01
1
No
of
hold
ers
No
ofSh
ares
% o
f H
oldi
ngs
No
of
hold
ers
No
ofSh
ares
% o
f H
oldi
ngs
No
of
hold
ers
No
ofSh
ares
% o
f H
oldi
ngs
Ran
ge o
f Sha
reho
ldin
gs1
t
o
100
0 Sh
ares
1001
to
10,0
00 S
hare
s10
,001
to
1
00,0
00 S
hare
s10
0,00
1 to
1
000,
000
Shar
es 1
,000
,001
& A
bove
Res
iden
tTo
tal
Non
-Res
iden
t
5C
OM
PO
SIT
ION
OF
SH
AR
EH
OL
DE
RS
Ord
inar
y V
otin
g Sh
ares
No
of
Shar
ehol
ders
No
of S
hare
s
% o
f
Shar
ehol
din
gs
No
of
Shar
ehol
ders
No
of S
hare
s
% o
f
Shar
ehol
din
gs
Res
iden
t
Non
-Res
iden
t
Tota
l
Indi
vidu
al
Inst
itut
ion
Tota
l
Dec
embe
r 31
, 201
1D
ecem
ber
31, 2
010
The
perc
enta
ge o
f Ord
inar
y V
otin
g Sh
ares
hel
d by
the
publ
ic w
as 5
9.79
% o
f the
issu
ed s
hare
cap
ital a
s at
Dec
embe
r 31
,201
1.
SHA
RE
HO
LD
ER
S &
IN
VE
ST
OR
S I
NF
OR
MA
TIO
N
3SH
AR
EH
OL
DE
R B
ASE
The
Tota
l num
ber
of (
Ord
inar
y V
otin
g )
shar
ehol
ders
as
at D
ecem
ber
31, 2
011
wer
e 11
,820
com
pare
d to
11,
686
as a
t Dec
embe
r 31
, 201
0. Th
e To
tal n
umbe
r of
(O
rdin
ary
Non
Vot
ing
) sh
areh
olde
rs a
s at
Dec
embe
r 31
, 201
1 w
ere
5,28
0 co
mpa
red
to 3
,954
at D
ecem
ber
31, 2
010.
No
of
hold
ers
No
ofSh
ares
% o
f H
oldi
ngs
No
of
hold
ers
No
ofSh
ares
% o
f H
oldi
ngs
No
of
hold
ers
No
ofSh
ares
% o
f H
oldi
ngs
Ran
ge o
f Sha
reho
ldin
gs1
t
o
100
0 Sh
ares
1001
to
10,0
00 S
hare
s10
,001
to
1
00,0
00 S
hare
s10
0,00
1 to
1
000,
000
Shar
es 1
,000
,001
& A
bove
4D
IST
RIB
UT
ION
OF
SH
AR
EH
OL
DE
RS
O
rdin
ary
Vot
ing
– Sh
areh
oldi
ng a
s at
31s
t Dec
embe
r 20
11
Res
iden
tTo
tal
Non
-Res
iden
t
The
Sto
ck e
xch
ange
tic
ker
sym
bo
l fo
r SM
B L
easi
ng
PL
C i
s "S
EM
B"
ST
OC
K E
XC
HA
NG
E L
IST
ING
2.
5,36
53,
404,
636
0.41
122,
049
05,
377
3,40
6,68
50.
413,
988
18,7
06,8
472.
2610
59,5
000.
013,
998
18,7
66,3
472.
271,
923
67,6
90,3
188.
1913
611,
181
0.07
1,93
668
,301
,499
8.26
424
125,
029,
783
15.1
312
4,85
8,64
20.
5943
612
9,88
8,42
515
.72
6853
2,31
8,96
964
.41
573
,804
,589
8.93
7360
6,12
3,55
873
.34
11,7
6874
7,15
0,55
390
.40
5279
,335
,961
9.60
11,8
2082
6,48
6,51
410
0.00
973
482,
289
0.09
212
00
975
482,
409
0.09
1,70
99,
582,
946
1.71
745
,500
0.01
1,71
69,
628,
446
1.72
1,85
282
,370
,039
14.7
15
237,
400
0.04
1,85
782
,607
,439
14.7
563
818
6,68
9,22
133
.34
83,
751,
000
0.67
646
190,
440,
221
34.0
181
243,
830,
005
43.5
45
33,0
11,4
805.
8986
276,
841,
485
49.4
3
5,25
352
2,95
4,50
093
.39
2737
,045
,500
6.61
5,28
056
0,00
0,00
010
0.00
11,7
6874
7,15
0,55
390
.40
11,6
2978
0,13
6,53
094
.39
5279
,335
,961
9.60
5746
,349
,984
5.61
11,8
2082
6,48
6,51
410
0.00
11,6
8682
6,48
6,51
410
0.00
11,5
1766
2,24
9,95
180
.13
11,4
2869
7,69
9,30
984
.42
303
164,
236,
563
19.8
725
812
8,78
7,20
515
.58
11,8
2082
6,48
6,51
410
0.00
11,6
8682
6,48
6,51
410
0.00
60
Con
tin
ued
DIR
EC
TO
RS
' SH
AR
EH
OL
DIN
G
No
. of
Shar
es%
of
Ho
ldin
gsN
o. o
f Sh
ares
% o
f H
old
ings
Sh
are
Info
rmat
ion
Boo
k V
alu
e
Net
Ass
ets
per
Shar
e- G
roup
(R
s.)
Shar
e P
rice
sO
rdin
ary
Shar
es -
Vot
ing
Hig
hest
(R
s.)
Low
est (
Rs.
)L
ast T
rade
d (R
s.)
Ord
inar
y Sh
ares
- N
on V
otin
gH
ighe
st (
Rs.
)Lo
wes
t (R
s.)
Las
t Tra
ded
(Rs.
)
Ear
nin
gs
Ord
inar
y Sh
ares
B
asic
Ear
ning
s Pe
r Sh
are
(Rs.
)P
rice
Ear
ning
Rat
io (
Tim
es)
Freq
uen
cy o
f Sh
ares
Tra
ded
Num
ber
of S
hare
s Tr
aded
Num
ber
of T
rans
acti
on
Mar
ket
Cap
ital
izat
ion
SMB
Lea
sing
PLC
Val
ue (
Rs.
Mn.
)
2011
2010
2011
2010
Mr.
R S
W S
enan
ayak
eV
oti
ng
No
n V
oti
ng
Mr.
M S
I P
eiri
sV
oti
ng
Vo
tin
g W
arra
nts
Dr.
T S
enth
ilve
rlV
oti
ng
Vo
tin
g W
arra
nts
No
n V
oti
ng
0.38
2.30
1.00
1.90
2.20
0.70
1.00
0.01
718
6.88
2,64
6,58
6,10
085
,661
2,13
0
Ord
inar
y N
on V
otin
g Sh
ares
No
of
Shar
ehol
ders
No
of S
hare
s
% o
f
Shar
ehol
din
gs
No
of
Shar
ehol
ders
No
of S
hare
s
% o
f
Shar
ehol
din
gs
Dec
embe
r 31
, 201
1D
ecem
ber
31, 2
010
The
perc
enta
ge o
f Ord
inar
y N
on V
otin
g Sh
ares
hel
d by
the
publ
ic w
as 9
9.99
% o
f the
issu
ed sh
are
capi
tal a
s at D
ecem
ber 3
1,20
11.
Res
iden
t
Non
-Res
iden
t
Tota
l
Indi
vidu
al
Inst
itut
ion
Tota
l
Oth
er R
atio
s
2011
2010
2011
2010
Deb
t Equ
ity
Rat
io (
%)
Inte
rest
Cov
er (
Tim
es)
Qui
ck A
sset
Rat
io (
Tim
es)
Gro
upC
ompa
ny
0.85
0.90
1.51
1.30
1.94
0.59
0.89
1.79
1.89
0.59
0.89
1.80
5,25
352
2,95
4,50
093
.38%
3,93
052
2,28
6,90
093
.27%
2737
,045
,500
6.62
%24
37,7
13,1
006.
73%
5,28
056
0,00
0,00
010
0.00
%3,
954
560,
000,
000
100.
00%
5,16
045
0,27
9,99
580
.41%
3,87
441
3,86
9,79
473
.91%
120
109,
720,
005
19.5
9%80
146,
130,
206
26.0
9%
5,28
056
0,00
0,00
010
0.00
%3,
954
560,
000,
000
100.
00%
62,0
000.
0162
,000
0.01
50,0
000.
0150
,000
0.01
240.
0024
0.00
--
140.
00
240,
098,
448
29.0
519
6,80
7,72
423
.81
--
36,0
48,2
006.
44-
-8,
303,
924
2.17
0.61
3.60
1.60
1.90
1.40
0.60 .7
0
-0.0
343
.33
2,58
6,47
8,10
069
,341
1,57
0
61
SHA
RE
HO
LD
ER
S &
IN
VE
ST
OR
S I
NF
OR
MA
TIO
NC
onti
nu
ed
62
NO
TIC
E I
S H
ER
EB
Y G
IVE
N T
HA
T T
HE
AN
NU
AL
GE
NE
RA
L M
EE
TIN
G O
F T
HE
CO
MPA
NY
WIL
L B
E H
EL
D O
N
TH
UR
SDA
Y 2
8TH
JU
NE
201
2 A
T 9
.30A
.M A
T S
ASA
KA
WA
HA
LL
, N
O.0
4, 2
2ND
LA
NE
, C
OL
OM
BO
03
FO
R T
HE
FO
LL
OW
ING
PU
RP
OSE
S.
To
rec
eive
an
d a
do
pt
th
e A
nn
ual
Rep
ort
of
the
Bo
ard
of
Dir
ecto
rs o
n t
he
affai
rs o
f th
e C
om
pan
y an
d t
he
Stat
emen
t o
f A
cco
un
ts f
or
the
year
en
ded
31s
t D
ecem
ber
201
1 an
d t
he
Rep
ort
of
the
Au
dit
ors
th
ereo
n.
To
re-
elec
t M
r. G
.C.B
.Ran
asin
ghe,
Dir
ecto
r w
ho
ret
ires
in
ter
ms
of
Art
icle
87
of
the
Art
icle
s o
f A
sso
ciat
ion
of
the
Co
mp
any
as a
Dir
ecto
r.
To
re-
app
oin
t M
essr
s K
PM
G,
Ch
arte
red
Acc
ou
nta
nts
, as
th
e A
ud
ito
rs o
f th
e C
om
pan
y fo
r th
e ye
ar 2
012
and
auth
ori
ze t
he
Dir
ecto
rs t
o fi
x th
eir
rem
un
erat
ion
.
To
au
tho
rize
th
e D
irec
tors
to
det
erm
ine
con
trib
uti
on
s to
ch
arit
ies,
an
d o
ther
do
nat
ion
s d
uri
ng
the
year
201
2.
BY
OR
DE
R O
F T
HE
BO
AR
D O
F D
IRE
CT
OR
S O
F
S M
B L
EA
SIN
G P
LC
S S
P C
OR
PO
RA
TE
SE
RV
ICE
S (
PR
IVA
TE
) L
IMIT
ED
SEC
RE
TA
RIE
S
Co
lom
bo
30th
May
201
2
No
te: A
ny
mem
ber
of
the
Co
mp
any
un
able
to
att
end
th
e m
eeti
ng
may
ap
po
int
ano
ther
per
son
(w
het
her
a m
emb
er o
r n
ot)
as a
pro
xy t
o a
tten
d a
nd
vo
te f
or
him
/her
. A p
roxy
fo
rm i
s at
tach
ed h
erew
ith
fo
r yo
ur
use
. The
com
ple
ted
fo
rm o
f
pro
xy s
ho
uld
be
dep
osi
ted
wit
h t
he
Secr
etar
ies
of
the
Co
mp
any
no
t la
ter
than
48
ho
urs
bef
ore
th
e ti
me
fixe
d f
or
the
mee
tin
g.
1. 2. 3. 4.
NO
TIC
E O
F M
EE
TIN
GV
oti
ng
NO
TIC
E I
S H
ER
EB
Y G
IVE
N T
HA
T T
HE
AN
NU
AL
GE
NE
RA
L M
EE
TIN
G O
F T
HE
CO
MPA
NY
WIL
L B
E H
EL
D O
N
TH
UR
SDA
Y 2
8TH
JU
NE
201
2 A
T 9
.30A
.M A
T S
ASA
KA
WA
HA
LL
, N
O.
04,
22N
D L
AN
E,
CO
LO
MB
O 0
3 F
OR
TH
E
FO
LL
OW
ING
PU
RP
OSE
S.
To
rec
eive
an
d a
do
pt
th
e A
nn
ual
Rep
ort
of
the
Bo
ard
of
Dir
ecto
rs o
n t
he
affai
rs o
f th
e C
om
pan
y an
d t
he
Stat
emen
t o
f A
cco
un
ts f
or
the
year
en
ded
31s
t D
ecem
ber
201
1 an
d t
he
Rep
ort
of
the
Au
dit
ors
th
ereo
n.
To
re-
elec
t Mr.
G.C
.B.R
anas
ingh
e, D
irec
tor
wh
o r
etir
es in
term
s o
f Art
icle
87
of t
he
Art
icle
s o
f Ass
oci
atio
n o
f th
e
Co
mp
any
as a
Dir
ecto
r.
To
re-
app
oin
t M
essr
s K
PM
G,
Ch
arte
red
Acc
ou
nta
nts
, as
th
e A
ud
ito
rs o
f th
e C
om
pan
y fo
r th
e ye
ar 2
012
and
auth
ori
ze t
he
Dir
ecto
rs t
o fi
x th
eir
rem
un
erat
ion
.
To
au
tho
rize
th
e D
irec
tors
to
det
erm
ine
con
trib
uti
on
s to
ch
arit
ies,
an
d o
ther
do
nat
ion
s d
uri
ng
the
year
201
2.
BY
OR
DE
R O
F T
HE
BO
AR
D O
F D
IRE
CT
OR
S O
F
S M
B L
EA
SIN
G P
LC
S S
P C
OR
PO
RA
TE
SE
RV
ICE
S (
PR
IVA
TE
) L
IMIT
ED
SEC
RE
TA
RIE
S
Co
lom
bo
30th
May
201
2
No
te: A
ny
mem
ber
of
the
Co
mp
any
un
able
to
att
end
th
e m
eeti
ng
may
ap
po
int
ano
ther
per
son
(w
het
her
a m
emb
er o
r n
ot)
as a
pro
xy t
o a
tten
d t
he
mee
tin
g. A
pro
xy f
orm
is
atta
ched
her
ewit
h f
or
you
r u
se.
The
com
ple
ted
fo
rm o
f p
roxy
sho
uld
be
dep
osi
ted
wit
h t
he
Secr
etar
ies
of
the
Co
mp
any
no
t la
ter
than
48
ho
urs
bef
ore
th
e ti
me
fixe
d f
or
the
mee
tin
g.
1. 2. 3. 4.
NO
TIC
E O
F M
EE
TIN
GN
on
Vo
tin
g
63
I /W
e ...
......
......
......
......
......
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......
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......
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......
......
......
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.I.C
. No.
.....
......
......
......
......
......
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......
......
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......
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f
......
......
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......
......
......
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......
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......
......
......
......
......
......
......
......
......
......
......
......
......
bei
ng
a m
emb
er/s
o
f th
e ab
ove
C
om
pan
y,
her
eby
app
oin
t M
r/M
rs/M
iss
......
......
......
......
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......
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......
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.C. N
o. ..
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of
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OR
fail
ing
him
/her
Mr.
Thir
un
avu
kar
asu
So
mes
war
an o
f C
olo
mb
o 0
3 o
r fa
ilin
g h
im*
Mr.
Um
esh
Gau
tam
of
Co
lom
bo
03
or
fail
ing
him
*
Mr.
Mu
thu
than
trig
e Su
rath
Isi
ra P
eiri
s o
f M
ora
tuw
a o
r fa
ilin
g h
im*
Mr.
Ro
han
Sen
aka
Wic
kra
mas
ingh
e Se
nan
ayak
e o
f C
olo
mb
o 0
5 o
r fa
ilin
g h
im*
Mr.
Gam
ini
Cu
da
Ban
dar
a R
anas
ingh
e o
f M
alab
e o
r fa
ilin
g h
im*
Mr.
Jag
ath
Ch
and
raw
ansa
Ko
rale
of
Co
lom
bo
07
or
fail
ing
him
*
Dr.
Thir
ugn
anas
amb
and
ar S
enth
ilve
rl o
f C
olo
mb
o 0
4 *
as m
y/o
ur
pro
xy t
o r
epre
sen
t m
e/u
s a
nd
vo
te o
n m
y/o
ur
beh
alf
at t
he
Nin
etee
nth
An
nu
al G
ener
al M
eeti
ng
of
the
Co
mp
any
to b
e h
eld
on
Thu
rsd
ay 2
8th
Ju
ne
2012
at
9.30
a.m
. at
Sasa
kaw
a H
all,
No.
04,
22n
d L
ane,
Co
lom
bo
03
and
at
any
adjo
urn
men
t th
ereo
f an
d t
o v
ote
at e
very
po
ll w
hic
h m
ay b
e ta
ken
in
co
nse
qu
ence
th
ereo
f.
Ple
ase
ind
icat
e yo
ur
pre
fere
nce
by
pla
cin
g a
‘X’ a
gain
st t
he
Res
olu
tio
n N
o.
F
OR
A
GA
INST
To
rec
eive
an
d a
dop
t th
e A
nn
ual
Rep
ort
of t
he
Bo
ard
of
Dir
ecto
rs a
nd
th
e au
dit
ed fi
nan
cial
Stat
emen
ts f
or t
he
year
en
ded
31s
t D
ecem
ber
201
1 an
d t
o r
ecei
ve t
he
Rep
ort
of t
he
Au
dit
ors
ther
eon
.
To
re-
elec
t M
r. G
.C.B
.Ran
asin
ghe,
Dir
ecto
r w
ho
ret
ires
in
ter
ms
of
Art
icle
87
of
the
Art
icle
s o
f
Ass
oci
atio
n o
f th
e C
om
pan
y, a
s a
Dir
ecto
r.
To
re-
app
oin
t M
essr
s K
PM
G, C
har
tere
d A
cco
un
tan
ts, a
s th
e A
ud
ito
rs o
f th
e C
om
pan
y fo
r th
e ye
ar
2012
an
d a
uth
ori
ze t
he
Dir
ecto
rs t
o fi
x th
eir
rem
un
erat
ion
.
To
au
tho
rize
th
e D
irec
tors
to
det
erm
ine
con
trib
uti
on
s to
ch
arit
ies
and
oth
er d
on
atio
ns
for
the
year
2012
.
Sign
ed t
his
.....
......
......
......
......
......
......
... d
ay o
f ...
......
......
......
......
...T
wo
Tho
usa
nd
an
d T
wel
ve.
Sign
atu
re: .
......
......
......
......
......
......
......
......
......
......
..
FO
RM
OF
PR
OX
Y
1. 2. 3. 4.
Vo
tin
g
64
Inst
ruct
ion
s fo
r th
e co
mp
leti
on
of
the
form
of
Pro
xy
Ple
ase
com
ple
te t
he
Fo
rm o
f P
roxy
aft
er fi
llin
g in
legi
bly
yo
ur
full
nam
e, N
IC N
um
ber
an
d a
dd
ress
an
d b
y si
gnin
g
in t
he
spac
e p
rovi
ded
.
Ple
ase
retu
rn t
he
com
ple
ted
Fo
rm o
f P
roxy
to
th
e Se
cret
arie
s to
th
e C
om
pan
y aft
er d
elet
ing
on
e o
r th
e o
ther
of
the
alte
rnat
ive
wo
rds
ind
icat
ed b
y as
teri
sks
in t
he
bo
dy
of
the
form
an
d b
y in
dic
atin
g w
ith
an
‘X
’ in
th
e sp
ace
give
n
agai
nst
eac
h r
eso
luti
on
ho
w y
ou
wis
h y
ou
r vo
te t
o b
e ca
st.
The
com
ple
ted
Fo
rm o
f P
roxy
sh
ou
ld b
e d
epo
site
d a
t th
e o
ffice
of
S S
P C
OR
PO
RA
TE
SE
RV
ICE
S (P
RIV
AT
E)
LIM
ITE
D a
t N
o. 1
01,
Inn
er F
low
er R
oad
, C
olo
mb
o 0
3, n
ot
late
r th
an 4
8 h
ou
rs b
efo
re t
he
tim
e ap
po
inte
d f
or
ho
ldin
g o
f th
e m
eeti
ng.
If t
he
pro
xy h
as b
een
sig
ned
by
an A
tto
rney
, th
e re
lati
ve P
ow
er o
f A
tto
rney
sh
ou
ld a
cco
mp
any
the
com
ple
ted
pro
xy
for
regi
stra
tio
n, i
f su
ch P
ow
er o
f A
tto
rney
has
no
t b
een
reg
iste
red
wit
h t
he
Co
mp
any.
If t
her
e is
an
y d
ou
bt
as t
o h
ow
th
e p
roxy
sh
ou
ld v
ote
by
reas
on
of t
he
man
ner
in w
hic
h in
stru
ctio
ns
un
der
(2)
ab
ove
hav
e b
een
car
ried
ou
t, t
he
pro
xy h
old
er m
ay v
ote
as
he
thin
ks
fit.
If t
he
shar
eho
lder
is
a C
om
pan
y o
r b
od
y co
rpo
rate
, a
form
of
Co
rpo
rate
Rep
rese
nta
tio
n e
xecu
ted
un
der
its
Co
mm
on
Sea
l in
acc
ord
ance
wit
h it
s A
rtic
les
of
Ass
oci
atio
n o
r C
on
stit
uti
on
sh
ou
ld b
e su
bm
itte
d.
An
y Sh
areh
old
er/
Pro
xy a
tten
din
g th
e A
nn
ual
Gen
eral
Mee
tin
g is
kin
dly
req
ues
ted
to
bri
ng
wit
h h
im/h
er t
he
Nat
ion
al I
den
tity
Car
d o
r an
y o
ther
fo
rm o
f va
lid
id
enti
fica
tio
n, a
nd
pro
du
ce s
ame
at t
he
tim
e o
f re
gist
rati
on
.
1. 2. 3. 4. 5. 6. 7.
FO
RM
OF
PR
OX
YV
oti
ng
65
I /W
e ...
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
...(N
.I.C
. No.
.....
......
......
......
......
......
......
......
......
......
......
......
) o
f
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
bei
ng
a m
emb
er/s
o
f th
e ab
ove
C
om
pan
y,
her
eby
app
oin
t M
r/M
rs/M
iss
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
....
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
.....(
N.I
.C. N
o. ..
......
......
......
......
......
......
......
......
......
......
......
...)
of
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
OR
fail
ing
him
Mr.
Thir
un
avu
kar
asu
So
mes
war
an o
f C
olo
mb
o 0
3 o
r fa
ilin
g h
im*
Mr.
Um
esh
Gau
tam
of
Co
lom
bo
03
or
fail
ing
him
*
Mr.
Mu
thu
than
trig
e Su
rath
Isi
ra P
eiri
s o
f M
ora
tuw
a o
r fa
ilin
g h
im*
Mr.
Ro
han
Sen
aka
Wic
kra
mas
ingh
e Se
nan
ayak
e o
f C
olo
mb
o 0
5 o
r fa
ilin
g h
im*
Mr.
Gam
ini
Cu
da
Ban
dar
a R
anas
ingh
e o
f M
alab
e o
r fa
ilin
g h
im*
Mr.
Jag
ath
Ch
and
raw
ansa
Ko
rale
of
Co
lom
bo
07
or
fail
ing
him
*
Mr.
Thir
ugn
anas
amb
and
ar S
enth
ilve
rl o
f C
olo
mb
o 0
4 *
as m
y/o
ur
pro
xy t
o r
epre
sen
t m
e/u
s a
nd
vo
te o
n m
y/o
ur
beh
alf
at t
he
Nin
etee
nth
An
nu
al G
ener
al M
eeti
ng
of
the
Co
mp
any
to b
e h
eld
on
Thu
rsd
ay 2
8th
Ju
ne
2012
at
9.30
a.m
. at
Sasa
kaw
a H
all,
No.
04, 2
2nd
Lan
e, C
olo
mb
o 0
3.
Sign
ed t
his
.....
......
......
......
......
......
......
... d
ay o
f ...
......
......
......
......
...T
wo
Tho
usa
nd
an
d T
wel
ve.
Sign
atu
re: .
......
......
......
......
......
......
......
......
......
......
..
FO
RM
OF
PR
OX
YN
on
Vo
tin
g
66
67
Inst
ruct
ion
s fo
r th
e co
mp
leti
on
of
the
form
of
Pro
xy
Ple
ase
com
ple
te t
he
Fo
rm o
f P
roxy
aft
er fi
llin
g in
legi
bly
yo
ur
full
nam
e, N
IC N
um
ber
an
d a
dd
ress
an
d b
y si
gnin
g
in t
he
spac
e p
rovi
ded
.
The
com
ple
ted
Fo
rm o
f P
roxy
sh
ou
ld b
e d
epo
site
d a
t th
e o
ffice
of
S S
P C
OR
PO
RA
TE
SE
RV
ICE
S (P
RIV
AT
E)
LIM
ITE
D a
t N
o. 1
01,
Inn
er F
low
er R
oad
, C
olo
mb
o 0
3, 4
8 h
ou
rs b
efo
re t
he
tim
e ap
po
inte
d f
or
ho
ldin
g o
f th
e
mee
tin
g.
If t
he
pro
xy h
as b
een
sig
ned
by
an A
tto
rney
, th
e re
lati
ve P
ow
er o
f A
tto
rney
sh
ou
ld a
cco
mp
any
the
com
ple
ted
pro
xy
for
regi
stra
tio
n, i
f su
ch P
ow
er o
f A
tto
rney
has
no
t b
een
reg
iste
red
wit
h t
he
Co
mp
any.
If t
he
shar
eho
lder
is
a C
om
pan
y o
r b
od
y co
rpo
rate
, a
form
of
Co
rpo
rate
Rep
rese
nta
tio
n e
xecu
ted
un
der
its
Co
mm
on
Sea
l in
acc
ord
ance
wit
h it
s A
rtic
les
of
Ass
oci
atio
n o
r C
on
stit
uti
on
sh
ou
ld b
e su
bm
itte
d.
An
y Sh
areh
old
er/
Pro
xy a
tten
din
g th
e A
nn
ual
Gen
eral
Mee
tin
g is
kin
dly
req
ues
ted
to
bri
ng
wit
h h
im/h
er t
he
Nat
ion
al I
den
tity
car
d o
r an
y o
ther
fo
rm o
f va
lid
id
enti
fica
tio
n.
1. 2. 3. 4. 5.
FO
RM
OF
PR
OX
YN
on
Vo
tin
g
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