Cargills (Ceylon) PLC - cdn.cse.lk

1 Cargills (Ceylon) PLCA nnual Report 2020 | 2021 ContentsAbout this Report 02 OverviewVision 03 Mission 03 Our Progress 04 Vision to Transform : The Journey 06 The Group Structure 08 Financial Highlights 11 Non-Financial Highlights 13 Our Businesses 14 Chairman s Message 16 Profile of Directors 18 Management and Financial Review 22 StewardshipCorporate Governance 29 Enterprise Risk Management 52 Financial StatementsAnnual Report of the Directors' on the Affairs of the Company 57 Statement of Directors Responsibility 61 Independent Auditor s Report 62 Statement of Profit or Loss and Other Comprehensive Income 68 Statement of Financial Position 69 Statement of

2 Changes in Equity - Group 70 Statement of Changes in Equity - Company 71 Statement of Cash Flows 72 Notes to the Financial Statements 74 Supplementary InformationFive Year Financial Summary 156 Group Real Estate Portfolio 158 Investor Relations Supplement 160 Notice of annual General meeting 162 Proxy Form 167 Corporate Information Inner Back Cover (IBC) Cargills (Ceylon) PLC annual Report 2020 | 2021 01 Overview Management and Financial Review Stewardship Financial Statements Supplementary InformationAt the core of Cargills over 175 year old story is our passion to be the helping hand the everyday heroes of our nation need to reach their fullest potential.

3 Our relationship with our farmers who help us nourish the nation is strengthened by the various projects, scholarship programmes for farmers children and environmental initiatives we conduct to assist them in furthering their personal and business growth. Entrepreneurs form a critical part of our supply chain, bringing success to themselves while contributing to the local economy. We take pride in helping encourage entrepreneurship in the country and improving the quality of life enjoyed by the communities they impact. Our employees hard work and determination have consistently put smiles on the faces of our valued customers.

4 We consider our employees our family and we make it a priority to provide them with opportunities for development in both their professional and personal lives. Our customers have facilitated the transformation of countless lives for the better with their unwavering loyalty towards us. In return, we reward them with quality products made accessible to all, at the best possible prices. Our farmers, entrepreneurs, employees and customers are all heroes who inspire us to transform the ordinary into the extraordinary and as such, are our heroes. We continue to take great pride in empowering Cargills (Ceylon) PLC annual Report 2020 | 2021 Overview Management and Financial Review Stewardship Financial Statements Supplementary InformationAbout this ReportScope and BoundariesIn a progressive journey towards integrated reporting, Cargills (Ceylon) PLC presents its annual Report for the year ended 31 March 2021, covering the operations of Cargills (Ceylon) PLC (Company) and its subsidiaries as listed out in the inner back cover of the compilation (collectively addressed as the Group ).

5 All financial and non-financial reviewing is within the scope of sectoral operations and their respective business units. The information covered is for the period from 1 April 2020 to 31 March 2021 which is the annual reporting cycle of the Cargills ReportingThe financial information has been prepared and presented in accordance with the Sri Lanka Accounting Standards (SLFRS and LKAS) laid down by the Institute of the Chartered Accountants of Sri Lanka in compliance with the requirements of the Companies Act No. 07 of 2007 and the listing rules of the colombo Stock exchange and have been audited by M/s Report also adheres with the requirements of the Code of Best Practice on Corporate Governance issued jointly by the Chartered Accountants of Sri Lanka and the Securities and exchange Commission of Sri ReportingInformation supplementary to the 2020/21 Cargills (Ceylon) PLC annual Report primarily on the Group s Sustainability Performance can be read at: The Independent Assurance report by Messrs.

6 KPMG providing reasonable assurance on the financial highlights on pages 2 to 3 and limited assurance on the non-financial highlights on page 4 & performance summary on pages 16 to 41 is included in the supplementary information to the Cargills (Ceylon) PLC s Integrated annual StructureThe Reporting structure enables the Group s businesses to be reviewed by Sector in terms of operations, strategy and performance while GRI reporting is compiled herein at Group level through a process of data gathering and review by operation and by sector.

7 Therefore, the main entity for which the social and environmental information is presented in the narrative reports unless otherwise stated at the Group level. The material aspects and boundaries are based on internal assessments covering the Group s operations in Sri Lanka. We have provided both quantitative and qualitative data and it has been our intention to provide quantitative data where possible to facilitate comparisons and further Reporting ApproachIn adopting an integrated reporting format, we provide a concise communication of the organisation's strategy, governance, performance and prospects, in the context of its external environment, leading to the creation of value over the short.

8 Medium and long integrated report also shows how the organisation uses and affects its important capitals as well as the trade-offs between the capitals, in its value creation report is an attempt to align the principles of The International Integrated Reporting Framework developed by The International Integrated Reporting Council (IIRC). Cargills (Ceylon) PLC annual Report 2020 | 2021 03 Overview Management and Financial Review Stewardship Financial Statements Supplementary InformationMissionVisionServe the rural community, our customers and all other stakeholders, through our core business food with love and other related businesses, based on the three main principles of.

9 Reducing the cost of living Enhancing youth skills Bridging regional disparityby enhancing local and global be a global corporate role model in community friendly national Cargills (Ceylon) PLC annual Report 2020 | 2021 Overview Management and Financial Review Stewardship Financial Statements Supplementary InformationOur ProgressIn 1844, William Miller and David Sime Cargill commenced a general warehouse, import, and wholesale business in the heart of colombo known as the House of Cargills . A successful bid by Sir Chittampalam Gardiner saw the House of Cargills being incorporated as a Public Limited Liability Company on 1 March 1946.

10 Over a quarter of a century later in 1981, Ceylon Theatres acquired controlling interest of the Company under the visionary leadership of Mr. Albert A. Page, who was appointed the Managing Director. Mr. Albert Page went on to become the Chairman of Cargills on 26 November the new management, Cargills explored the potential of innovating on its trading legacy and recognised the opportunity to enter into the retail trade. Thus, in 1983, the first Cargills Food City supermarket was established at Staple Street. Cargills today operates the most widespread modern retail network in the country and is the only modern grocery retailer to serve all 25 districts in Sri Lanka.