Who, Where, How and What - John Keells PLC

1 Who, where , How and WhatJohn Keells PLC Annual Report 2016/17 Annual Report 2016/17 1 Who, where , How and WhatJohn Keells PLC Annual Report 2016/172 John Keells PLCFor over 148 years, John Keells PLC has been a corporate benchmark of quality, brand excellence and good governance. Our long heritage and sound values have led to our becoming the paradigm that others follow. That is why this report analyses the who, where , how and what of the triple bottom line results presented in these pages, in order to offer our stakeholders a clear view of where they stand in relation to their know that relentless self-assessment is the first step towards an environment of excellence and that is what we have demonstrated in this Annual Report.

2 The pages that follow describe an excellent performance across a range of indicators that will ensure our strength both now and into the years ahead. You will also find the answers to the questions we have posed on the cover of this who, where , how and Report 2016/17 3 The Board of Directors 62 Corporate Governance 65 Enterprise Risk Management 82 Audit Committee Report 87 Annual Report of the Board of Directors 90 Statement of Directors Responsibility 96do we discuss our rigorous governance and regulation? where are we?Who do we take such care that our business remains strong, sustainable and equitable?

3 How do we deliver to every stakeholder we serve, growing value year on year?WhatIntroduction to the Report 06 Group Structure 08 Performance Highlights 10 Year at a Glance 12 Highlights 14 Chairman s Statement 15 Milestones 20 Management Discussion & Analysis 22 GRI Index 52 Our commitment to achieve United Nations sustainability development goals 59 Our commitment to achieve United Nations Global Compact Principles, (2000) 60 Financial Calendar 98 Independent Auditor s Report 99 Income Statement 100 Statement of Comprehensive Income 101 Statement of Financial Position 102 Statement of Changes in Equity 103 Cash Flow Statement 105 Index to the Notes 107 Notes to the Financial Statements 108 Information to Shareholders and Investors 162 Five Year Summary 164 Key Ratios and Information 166 Glossary of Financial Terminology 168 Notice of Meeting 170 Form of Proxy 171 Contents4 John Keells PLCWho where How WhatAnnual Report 2016/17 5 Whoare we?

4 Introduction to the Report 06 Group Structure 08 Performance Highlights 10 Year at a Glance 12 Highlights 14 Chairman s Statement 156 John Keells PLCWho where How WhatThe year 2017 as the industry celebrates 150 years of Ceylon Tea we pride ourselves to present our third integrated Annual Report to our stakeholders. Scope and BoundariesThe report aims to share the unique value creation over the short, medium and long term to the stakeholders of John Keells PLC (JKL) and its subsidiaries; John Keells Warehousing (Pvt) Ltd (JKW) and John Keells Stock Brokers (Pvt) Ltd (JKSB) (herein referred to as Group ), for the period 1st April 2016 to 31st March 2017.

5 The holistic approach of the report will describe and quantify how we create financial and non-financial value along with sustainability, to our stakeholders to provide a longer-term view of the business. Whilst comprehensively detailing, we ensure to deliver a relevant report adhering to the recommendations of the International Integrated Reporting Council (IIRC) for the year under review. Standard and PrinciplesReporting Integrated Reporting Framework of the International Integrated Reporting Council (IIRC)Governance, Risk Management and Operations Laws and regulations of the Companies Act No.

6 7 of 2007 Listing Rules of the Colombo Stock Exchange (CSE) and subsequent revision to date. The Code of Best Practice on Corporate Governance jointly advocated by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and the Securities and Exchange Commission of Sri Lanka (SEC).Financial Reporting Sri Lanka Accounting Standards (SLFRS/LKAS) issued by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka).Sustainability and Corporate Social Responsibility Reporting Voluntary adoption of Global Reporting Initiative (GRI) GRI 4 Sustainability Reporting Guidelines.

7 United Nations Sustainable Development Goals United Nations Global Compact Principles Determining Materiality Materiality analysis is a key process that enables the Group to define key triple bottom line issues that are of, greatest significance to our businesses and stakeholders, both internal and external, in the short medium and long term. Our focus Introduction to the Report on materiality, through emphasis on 29 material aspects recognized by both internal and external stakeholders is vital as we drive performance, improve our sustainability framework and institutionalize the Group s corporate governance philosophy at all the matrix, as illustrated on our Management Discussion and Analysis section of this report indicates the prioritisation of these material aspects the Group continues to assess its internal and external materiality and disclose the performance of such aspects.

8 Its reporting scope will be expanded as and when an aspect becomes material to the Group and its stakeholders. Disclaimer for the Publication of Forecast DataThe report contains information about the plans and strategies of the Group for the medium and long term and represent the group view of the management. The plans are forward looking in nature and their feasibility depends on a number of economic, environmental, political and legal factors which are outside the influence of the Group and Company such as global and domestic financial, economic and political situations, the situation of key markets, changes in tax, environmental legislation, weather patterns and so forth.

9 Given this, the actual performance indicators in future years may differ from the forward looking statements published in this Report. The reader is advised to seek expert professional advice in all such VerificationThe information contained in this Report has been reviewed as applicable by, The Board of Directors Audit Committee of the Company An independent auditor confirming the accuracy of the annual financial statements The Management CommitteeAny feedback or inquiries regarding the content of this report can be directed to:Sector Financial ControllerJohn Keells PLC.

10 , Vauxhall StreetColombo : G4-17, G4-18, G4-28 Annual Report 2016/17 7 VISIONTo be internationally recognised as the best Produce Broker in the retain the pre-eminent position as Sri Lanka s leading Tea and Rubber broker; To uphold the traditions and ethics of the Tea and Rubber trades; To ensure superior customer service through a dedicated and motivated workforce. VALUESWe are committed to the highest level of integrity and ethical conduct in all our business will look towards exceeding shareholder and customer expectations by achieving excellence in all areas of recognise the right of every individual to be treated with fairness.