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Kelani Cables PLC | Annual Report 2009/10
Contents
2 Financial Highlights
3 Chairmans Review
5 Managing Directors Review
9 Board of Directors
11 Senior Management Team
14 Operational Review
18 Product Portfolio
20 Corporate Social Responsibility
23 Human Resources
26 Risk Management
30 Corporate Governance
34 Remuneration Committee Report
35 Report of the Directors
38 Directors Responsibility for Financial Reporting
Financial Reports
41 Independent Auditors Report
42 Income Statement
43 Balance Sheet
44 Statement of Changes in Equity
45 Cash Flow Statement
46 Notes to the Financial Statements
69 Statement of Value Addition
70 Investor Information
72 Decade at a Glance
74 Glossary of Financial Terms
75 Notice of Meeting
Enclosed Proxy Form
Inner Back Cover Corporate Information
2 Kelani Cables PLC | Annual Report 2009/10

Our Vision
To be A House of Special Cables
Our Mission
Deliver optimum value to our stakeholders through product development, advanced technology,
improved productivity and efficiency, while creating an open culture within the organisation to
harness innovation and creativity
Financial Highlights
2010 2009
Turnover (Rs. Mn) 3,322 2,830

Gross Profit (Rs. Mn) 695 469
Profit Before Tax (Rs. Mn) 279 135
Profit After Tax (Rs. Mn) 140 95
Net Assets (Rs. Mn) 1,518 1,413

Net Assets per Share (Rs.) 69.62 64.85
Earnings per Share (EPS) (Rs.) 6.41 4.36
Return on Investment (ROI) (%) 20.7 14.7

Chairmans Review
The expansion of infrastructure development activities, laid

out opportunities to the cable industry and Kelani Cables PLC,
achieved the highest net turnover of Rs. 3,322 Mn during the
year under review, compared to Rs. 2,830 Mn in 2008/09,
showing a growth of 17%.
Kelani Cables PLC | Annual Report 2009/10 3

On behalf of the Board of Directors, it is my pleasure to present the Annual Report and the Audited Financial
Statements for the year ended 31st March 2010.
The end of the prolonged internal conflict in the North and East of the country has ushered in opportunities for
rapid economic development. The countrys economy achieved a growth of 3.5% relating to the period under
review. The global financial crisis shows signs of recovery although it is somewhat dampened by the financial
turmoil in some Euro Zone countries.
The expansion of infrastructure development activities, laid out opportunities to the cable industry and
Kelani Cables PLC, achieved the highest net turnover of Rs. 3,322 Mn during the year under review, compared to
Rs. 2,830 Mn in 2008/09, showing a growth of 17%.
KCL Group achieved a profit after tax of Rs. 139.6 Mn for the year, compared to Rs. 94.9 Mn in the year 2008/09.
The improved profitability was achieved through, higher turnover, improved gross profit margin and lower finance
cost. Debtor and inventory levels have increased due to the increased business volumes and inventory build up was
necessary to gear up for the orders in hand, resulting in increased borrowings at the year end.
The Company has invested around Rs. 45 Mn into assets mainly on upgrading plant & equipment. The Company
paid an interim dividend of Rs. 2.00 per share in February 2010, and in March 2010, Kelani Cables PLC
concluded a share split into two, creating improved liquidity and market value for the shares.
There are raised expectations for 2010 with strong post-war expansion in reconstruction and agriculture
particularly in the former conflict zones. The growth of infrastructure development in these areas will present
many opportunities to the private sector. The results of the year under review have set a new standard and
the bar has been raised to a new level of performance and excellence.
I wish to express my sincere appreciation to our valued customers, distributors, dealers, bankers, suppliers for their
continued support and to all employees of Kelani Cables PLC for their loyal and devoted contributions during this
year. My sincere thanks to the efforts made by Mr. Hemantha Perera, Managing Director and my fellow Directors
for their contributions. In conclusion I thank the shareholders for their valuable patronage and confidence.
U.G. Madanayake
Chairman
Colombo
22nd June 2010
4 Kelani Cables PLC | Annual Report 2009/10 | Chairmans Review

Managing Directors Review
Your Company continues its strong position as a leading

name in the sector retaining its dominance in holding 35%
in the local electrical cables market. The strength of our
island-wide distribution network sustained by the continuous
implementation of best practices enabled us to maintain
our market share during this year too.

As your Company completes its 41st year in the cable manufacturing business, it has been my honour to have
been in office for 7 successful years and it is with great pleasure and pride that I present this review of the year
2009/10 on behalf of the Board of Directors.
A landmark year in the history of our nation, with the cessation of hostilities, the much-awaited end to the
prolonged internal conflict with the restoration of peace providing greater optimism for economic prosperity
creating a strong basis for long-term sustainable development. The Governments strengthened commitment
to progress with a pledge to spend US$ 1 Bn on ports, roads and power plants in 2010 will enable the
infrastructure developments to spill over to promote growth even further.
The Sri Lankan economy continues to look upwards demonstrating its resilience by growing at 3.5% in 2009
amidst challenging domestic and external conditions, with a raised growth forecast for the year 2010 of 7% -
higher than its previous prediction of 6.5% and a sharp rise on the 3.5% recorded in 2009 - citing strong post-
war expansion in reconstruction and agriculture, particularly in former conflict zones. Offering our unstinted
support to the Governments endeavours for infrastructure development and the progress of our nation, we too
have strengthened our commitment to expansion and growth and success in a new post-war era of peace. With
the opening up of the North and the East presenting countless opportunities to the private sector, the expansion
of infrastructure development in these areas will significantly increase our own business growth - opportunities,
your Company will continue to explore to the full.
In such a year of significance, I am proud to state that your Company has made the highest turnover with a
growth of 17% compared to the previous year, increasing the contribution to the stakeholders. We have proved
yet again, as we did the last year during the global economic meltdown, our capability to respond positively to
every situation upon the strength of our sound organisational structure, based on the concept of sustainable
development. Recording another year of success, your Company secured a net turnover of Rs. 3,322 Mn
compared to Rs. 2,830 Mn of the previous year and the gross profit margin also increased from 16.5% of the
previous year to 20.9% resulting to Rs. 695 Mn.
The distributor market recorded an increase in net turnover of 6.2% and export turnover dropped by 3.6% to
Rs. 432 Mn in the year under review due to the global economic downturn.
Your Company continues its strong position as a leading name in the sector retaining its dominance in holding
35% in the local electrical cables market. The strength of our island-wide distribution network sustained by the
continuous implementation of best practices enabled us to maintain our market share during this year too.
With product initiatives that will deliver value and benefits to our customers, your Company has made great
strides towards achieving our vision and mission. Relying on our strong values to guide our focus strategically on
all our activities and the continuous bridging of gaps in operations as well as in our service levels, we take every
possible measure to ensure the best profit to all our customers and stakeholders.
6 Kelani Cables PLC | Annual Report 2009/10 | Managing Directors Review

The year under review saw significant progress in our product segment. We are proud to have acquired a
Tender from the Ceylon Electricity Board to manufacture high tension aluminium conductors called Zebra.
A considerable challenge in itself, as this is the first time a Sri Lankan company has undertaken the attempt to
manufacture such type of cable locally and to this end, I am proud to report its noteworthy success. This is an
important milestone in the industry, as all these years the Ceylon Electricity Board had to import this product and
today Ceylon Electricity Board is indeed pleased with our endeavours and the resulting success in proving the
capability of a local company, and the much appreciated cost benefit.
During the latter part of the year, we were also awarded a Tender for the supply of Aerial Bundled Conductors
(ABC). Although this too was a new product for our Company, we met the challenge with confidence and are
pleased with the progress made so far and look forward to the successful completion of this project too. Your
Company has made its mark with these important strides and has now become one of the best suppliers to the
Ceylon Electricity Board, gaining their confidence. This is highly beneficial to us, as it places us in a strong footing
to become a key supplier of cables to meet their objective in the electrification of the North and the East as well
as all development programmes in the country that are already in progress. This is also imperative in our aim to
establish our presence in the North and the East while playing a vital role in supporting the Governments rural
electrification programme.
Research and development activities also continue towards manufacturing special cables with the view to
differentiate ourselves product-wise. This is in line with our goal to build a competitive edge in all our activities by
establishing a unique identity for our Company, products and team.
We also concentrated on strengthening our island-wide distribution network to ensure 100% availability of our
products across the country, based on the premise of our safety forever drive. Market competition continued
to be strong and in order to compete, we plan to invest in new technology to keep pace with our production at
competitive prices.
Our focus on developing our primary asset - our employees, was also reinforced during the year under review.
We continued to invest in strengthening of their leadership skills in alignment with the Companys leadership
values. Every possible effort was made, as always, to maintain the welfare of our employees and enlist their
unstinted support and passion to drive the Company forward. Invaluable employee participation for our
endeavours was gained through our 5S, kaizen and safety programmes, which contribute greatly to our
innovative approach to our business problems. Several human resource initiatives were also undertaken to ensure
the retention and progress of our best talent.
Although unobtrusive, our commitment to the community continued through ongoing CSR projects, including
the training and development programmes for electricians and students who wish to enter and progress in the
industry. Donations too continued to be made towards several charitable, religious and educational causes as
well as our annual alms-giving to the differently abled inmates at the Victoria Home. With stringent measures in
place to ensure that no harmful effluents are released, we maintain the highest of environmental standards at
every stage in our factory operations and our pledge to the environment continues to stand unshaken.
Managing Directors Review | Kelani Cables PLC | Annual Report 2009/10 7

As in the previous years, we focussed on maintaining and increasing our brand presence in the cable industry
and with the success of the Company manufactured new products, we hope to gain more share and grow our
brand equity. With the developments and the opening up of the North and the East, we are actively pursuing
brand building and increasing brand presence with more emphasis on the Tamil language as the main medium
of communication.
With over forty years of successful operation, your Company has performed outstandingly in contributing
towards the development of our country, even through times of great adversity and economic downturn. As the
nation look forward to a new era of peace and progress, the culture of high performance we have developed
over the past years, building on the assets we possess in the wealth of a committed and competent work force,
a sound work ethic and the ever strengthening pursuit of excellence will no doubt place us ahead in the path of
success in the coming year.
In conclusion, I extend my appreciation to the Chairman and the Board of Directors for their continued
confidence and support in the effort to nurture the interests of the Company and all its stakeholders. My sincere
gratitude is also hereby expressed to our valued customers, whose loyalty to us as their long-term supplier of
cables has been unwavering throughout, making them the very foundation of our success. We will continue
to do our utmost to offer you the best and look forward to further strengthening the bonds of our partnership
towards mutual progress. I am deeply honoured by the steadfast support extended to me by all my colleagues -
in the management team, and the staff of over 400 committed people, whose passion, drive and dedication on
an everyday basis, keep us on firm ground and propels us on the road to success - and to each and everyone,
I extend a heartfelt thank you.
As we look back on a year of robust performance and close relationships, we can be truly proud of the success
we have achieved together. And upon its strength, we are more than ready to meet the challenges of the coming
year and to further our progress significantly as the nation looks ahead to a new era of prosperity and peace.
Hemantha Perera
Managing Director
Colombo
22nd June 2010
8 Kelani Cables PLC | Annual Report 2009/10 | Managing Directors Review

Board of Directors
Mr. Upali Madanayake - Chairman

Mr. Upali Madanayake graduated from the University of Cambridge, England in 1958 and had his MA (Cantab.),
conferred on him in 1962. He is a Barrister-at-Law (Lincolns Inn) and an Attorney-at-Law of the Supreme Court
of Sri Lanka. He started his working life managing family-owned plantations until most of these properties were
taken over by the State, under the Land Reform Law of 1972. He continues to take an active interest in agriculture.
Later, he was appointed to the Board of Associated Motorways Limited and subsequently became Deputy
Chairman of the Company. He was appointed to the Board of ACL Cables Limited in 1963, Managing Director of
the Company in 1978, and Chairman/Managing Director in 1990. Presently he serves as the Chairman of
ACL Cables PLC.
With the acquisition of Kelani Cables Limited by the ACL Group in 1999, he was appointed as Chairman of
Kelani Cables and Lanka Olex Cables (Private) Limited, which is the Holding Company of Kelani Cables.
Mr. Madanayake is the Chairman of Fab Foods (Private) Limited, Ceylon Tapioca Limited, ACL Plastics PLC,
ACL Metals & Alloys (Private) Limited, ACL Polymer (Private) Limited and ACL Kelani Magnet Wire (Private)
Limited. He is a Director of Ceylon Bulbs & Electricals Limited.
He has over forty years of experience in the cable industry.
Mr. Suren Madanayake - Deputy Chairman

Mr. Suren Madanayake, qualified as a Mechanical Engineer from the University of Texas, at Austin, USA. He was
appointed to the Board of ACL Cables Limited in 1991 and appointed as Managing Director in 2005. When ACL
Group acquired Kelani Cables Limited, in 1999 he was appointed as Managing Director of Kelani Cables PLC
and Lanka Olex Cables (Private) Limited, which is the Holding Company of Kelani Cables PLC. In 2003 he was
appointed as Deputy Chairman of Kelani Cables PLC.
He also serves as the Managing Director of Ceylon Bulbs and Electricals Limited, ACL Plastics PLC and Director of
ACL Metals & Alloys (Private) Limited, ACL Polymer (Private) Limited, ACL Kelani Magnet Wire (Private) Limited,
Fab Foods (Private) Limited and Ceylon Tapioca Limited.
Mr. Hemantha Perera - Managing Director

Mr. Hemantha Perera holds a Masters Degree in Business Administration from USA. He began his career in 1984,
working for the John Keells Holdings Limited as a Trainee Executive in the Tea Department. Later he moved to
Keells Aquariums, where he went on to become Director Sales and Marketing.
Mr. Perera was appointed to the Board of Directors of ACL Cables Limited and ACL Kelani Magnet Wire (Private)
Limited in 2001. He was appointed to the Board of Kelani Cables as Managing Director in 2003. He is also a
member of Sri Lanka Institute of Directors.

Mrs. N.C. Madanayake - Director
Mrs. N.C. Madanayake was appointed to the Board of Kelani Cables Limited in 1999. She is also a Director of
ACL Cables PLC, ACL Plastics PLC, Ceylon Bulbs and Electricals Limited and Ceylon Tapioca Limited.
Mrs. Madanayake is a pioneering Director of Fab Foods Private Limited and now serves as Managing Director
of the Company.
Dr. Bandula Perera - Director

Dr. Bandula Perera counts several years of experience in both Public and Private Sectors and is the former
Chairman of SME Bank, Industrial Development Board, former General Manager of Lanka Tiles, Ceredec
(Private) Limited, Ceylon Ceramics Corporation, former Managing Director of Ceylon Glass Company and former
Additional Director General of the Board of Investment, among others.
Dr. Perera is currently the Managing Director of Samson Rajarata Tiles Limited. (a member of the DSI Samson
Group), serves in the Boards of Primal Glass Ceylon PLC., Lankaputhra Development Bank, Dankotuwa Procelain
PLC, Credit Information Bureau of Sri Lanka and holds Government senior positions as Vice-Chairman of Public
Utilities Commission of Sri Lanka and also Commissioner of National Science and Technology Commission.
Dr. Perera holds a PhD-CNAA and a BSc (Hons) from UK. He also holds a BSc (Ceylon) and is a Fellow of the
Institute of Metals, Materials and Mining (UK).
He was appointed to the Board of Kelani Cables PLC in March 2008.
Dr. Ranjith Cabral - Director

Dr. Ranjith Cabral is a former Chairman of Colombo Gas Company, Vice-Chairman of the Ceylon Electricity Board
and has served in the Boards of Ceylon Petroleum Corporation, Industrial Development Board and Management
of the University of Colombo School of Computing (UCSC). Also served as a Member of the Councils of Open
University and University of Colombo and also of the Board of Faculty of Science, Kelaniya University.
Dr. Cabral has held several Senior Management positions in both Public and Private Sectors including Ceylon
Ceramics Corporation, Bank of Ceylon, University Grants Commission, Sri Lanka Institute of Development &
Administration and Unilever Ceylon Limited.
Dr. Cabral is currently a Council Member of the South Asian Institute of Technology and Management of
Sri Lanka, Member of Advisory Board of Department of Industrial Management of University of Kelaniya,
Director of Renewable Energy Development Partners (Private) Limited and Chairmen of Sikshana Educational
Investment (Private) Limited and Opinion Polls Survey (Private) Limited.
He was appointed to the Board of Kelani Cables PLC in March 2008.
10 Kelani Cables PLC | Annual Report 2009/10 | Board of Directors

Senior Management Team
Christian Knower - General Manager

Christian joined the Company in 1977 and has headed the Supplies, Imports, Logistics and Transport Divisions of
the Company. He has over 30 years of management experience in the operations of the Company.
Hemamala Karunasekara - Finance Manager

Hemamala joined the Company in 1990. She is a Fellow Member of The Institute of Chartered Accountants of
Sri Lanka (FCA), Chartered Institute of Management Accountants, UK (FCMA), and Society of Certified
Management Accountants of Sri Lanka. (FCSMA). She also holds a MBA from the University of Colombo.
She has 20 years of experience in Financial Management.
Anil Munasinghe - Marketing Manager

Anil has over 19 years experience in Sales and Marketing. He joined the Company in 2003 and is responsible for
Sales, Marketing and Brand Development functions.
Nandana Okandapola - Manager Human Resources

Nandana joined the Company in 1981 and has 28 years experience in the areas of import/export, logistics,
marketing and personnel administration. He holds a Diploma in Personnel Management from the NIBM.
Upul Mahanama - Operations Manager

Upul joined the Company in January 2009 and has over 20 years experience in the cable manufacturing industry.
He holds a National Diploma in Technology from the University of Moratuwa and is a member of the Institution
of the Incorporated Engineers of Sri Lanka (MIIE-SL). Currently he is reading for Masters in Manufacturing
Management Degree at the University of Colombo.

The year 2009/10 has been a landmark in many ways.
From a Company perspective, we grew Turnover, Net Profits

and all other indicators of prosperity and well-being during
this period.
From a National perspective, a 30 year war came to a close

which was accompanied by an unfolding era of almost
unimaginable opportunity as the Government kick-started
massive development initiatives in the North and East of the
country. The national economy too shows signs of resurgence.
It was a year in which Kelani Cables increased momentum

in all areas of enterprise securing several important contracts,
researching and introducing cutting edge products and
expanding outreach and our dealer network.
However, one of the most significant achievements the

Company made during the period under review was to
strengthen its ties with all stakeholders - building even
stronger bonds with them than we had already established
in past years.
This is a real area of strength and one which we cherish and

aim to maintain and grow in the years to come.

Operational Review

Over the years, we have steadily built the Kelani Cables brand to be
the household name in Sri Lanka it is today, and we continued our brand
building activities throughout the year, albeit low key, to uphold the
brand presence. We also invested in enhancing the equity of the Kelani
Cables brand through an ongoing focussed mass media campaign as well
as below-the-line promotions.
Business Overview
In a newly war-free nation with much needed infrastructure being put in place, Sri Lanka was poised for take off
in the year under review, and unlike in the previous year, steady growth was significant in the sector overall. The
market continues its upward journey from last year. Anticipating this surge in growth and the countrys economic
recovery, your Company geared itself in the previous year to meet the challenges of potential demands with the
increasing development projects in the North and the East as well as other rural development projects under way
in the country. This timely preparation proved highly beneficial in the past year as we surpassed our expectations
with some significant achievements to our name.
In line with our objective to venture into special cable products to cater to new market requirements, the
Company made a conscious decision not to compete with the existing products but to bring in new ones
that will suit the customers needs better. In doing so, we intend to have an important edge in the new
products segment and by doing so, strengthening our hold on the market with a clear advantage. Not only
will this venture expand our business potential and increase our growth as a Company; it will also save foreign
expenditure on imported products.
While competitor activities continued to remain strong during the year, our strategy however, was not to
contend on price but to garner market share through increasing customer loyalty. To that end, our strong and
effective dealer network played a primary role to build and nurture customer relationships. We continue to
actively educate our dealers to focus on cultivating customer confidence and allegiance. Whilst these factors
are in fact strongly in our favour at present, we will continue to reinforce these ties to enable us to face future
competition with confidence.
Operational Review | Kelani Cables PLC | Annual Report 2009/10 15

Marketing Strategy
We continue to hold our own in the local power and energy industry as a customer focussed and shareholder-
oriented organisation with over 40 years experience. A trusted and respected name, our market is categorised
into three main segments:
Dealer Market
Enabling us to cater to the needs of the domestic users of cables, the dealer market is a vital segment in our
marketing operations. In the year under review, we continued to strengthen our already well established island-
wide distributor network, and this is at present supported by a Field Sales Manager, 8 Area Sales Managers and
37 Sales Promotion Officers. With their unstinted support to our expansion drive, we strive to ensure 100%
availability of our products island-wide. With rapidly increasing opportunities for growth in the North and the
East, we are actively adding those Provinces to our network with new dealerships.
Project Market
The market for professional end users, success in this segment is imperative to the Companys growth. With
the cessation of hostilities, we are happy to observe great potential in this sector and have geared ourselves
accordingly to meet the demands. Our project marketing team comprises especially those experienced in fulfilling
the needs of large-scale projects. Placing great importance to quality and on-time delivery we have further
strengthened our project team with two qualified Engineers. Moreover, the project market was also segmented
based on applications and usage, which in turn created a higher customer focus.
Export Market
Following the success of the two products launched the previous year, with a view to furthering our progress in
the export market; we are hoping to repeat the achievements with the introduction of our two new products.
Having successfully established our presence in the Republic of Maldives, we are currently promoting an active
product drive in that country. Riding on the success of our operations in the Maldives, we are exploring further
market opportunities in Africa, Middle East and the SAARC regions, with plans being laid for the year ahead.
16 Kelani Cables PLC | Annual Report 2009/10 | Operational Review

New Products
In line with our mission to deliver optimum value to our stakeholders through product development, we are
proud of our achievements in introducing more new products into the market. We launched Ariel Bundled
Cables (ABC) to the market and we are happy to record their success to date. Furthermore, two more products
namely Iron Lead Cables and Boat Cables will also be launched within the next four months of the coming year.
The most significant achievement for the year under review was our undertaking of the manufacturing of ACSR -
Zebra (400 mm2) conductors. A pioneering effort, this marks a milestone in the cables market, and we are proud
to be the first to successfully manufacture high quality products in this sector locally.
Brand Building
Over the years, we have steadily built the Kelani Cables brand to be the household name in Sri Lanka it is
today, and we continued our brand building activities throughout the year, albeit low key, to uphold the brand
presence. We also invested in enhancing the equity of the Kelani Cables brand through an ongoing focussed
mass media campaign as well as below-the-line promotions.
Steady brand building activities are taking place primarily in the North and the East with an intensive focus on
Tamil language in order to build more empathy with our customers in those regions. Our store in Vavuniya plays
a vital role in such activities in the region, helping in our objective to reach further into the Mannar, Killinochchi
and Jaffna areas consolidating our presence firmly in Northern Sri Lanka. All recruitment for our activities is also
from those areas and by doing so, we are empowering the local communities and offering employment and
training to the local youth.
With the Governments plans for substantial development in the country, we are gearing ourselves to being a big
player in the distribution of cables to cater to the anticipated demand island-wide.
Operational Review | Kelani Cables PLC | Annual Report 2009/10 17

Product Portfolio
Kelani Winding
TV Down Leads/RG
Wires
Series
Enamelled winding
Annealed copper conductors
wire manufactured
with polyethylene insulated
to IEC standards.
and copper braided Co-axial
The Company holds
& RG cables, manufactured to
the prestigious UL
JIS, MIL & BELDON standards.
Certification for
Categories are, 3C-2V,
the Dual Coated
5C-2V, RG 6, RG 11A/U,
Enamelled winding
RG 58B/U, RG 59B/U and
wires (Keldual &
RG 213/U
Kelduale)
Flexible Cords
Flexible cords with Class V copper conductors
and PVC insulated twisted twin, parallel twin
& PVC insulated & sheathed circular multi core
cables. Manufactured to BS 6500 to a voltage House & Building Wires
rating of 300/500 V
Copper conductors with
PVC insulated and sheathed.
Manufactured to BS 6004 to
a voltage ratings of 450/750V
and 300/500 V
Kelani Lead Free

Submersible
Pump Cables
Kelani Submersible Pump
Cables are manufactured
with lead free PVC compound
which is resistant to water, oil
and moisture. High flexibility is
Telephone Cables guaranteed and manufactured
to BS and IS standards
Plain annealed copper conductors,
PE insulated and PVC sheathed.
Manufactured from single pair to 25 pair

Bare Conductors
All Aluminium Conductors
(AAC) and Aluminium
Conductors Steel
Reinforced (ACSR), up to
400mm2 manufactured to
BS 215 and ASTM
Kelani Welding Cables
High conductivity bare copper flexible
conductors, with a covering that
consists of two layers with specially
developed flexible Elastomer, meeting
the requirements of IS 9857. Outer
layer is Black or Orange
Control Cables
Multiple conductor cable
with PVC insulated and
PVC sheathed. Number of
cores range from 5 to 48.
Manufactured to BS 6346 to a
voltage rating of 600/1000 V.
The cables can be armoured
or unarmoured and either
screened or unscreened
Instrumentation Cables
Annealed copper conductors with
PVC insulated & copper braided
instrumentation cables in two
core, three core & four core.
Manufactured to BS 6500
Armoured and Unarmoured Power Cables

Copper conductors with PVC or XLPE insulated
steel wire armoured and PVC sheathed designated
as armoured cables. Copper conductors with PVC
or XLPE insulated and PVC sheathed designated as
unarmoured cables. Manufactured to BS 6346 and
5467 to a voltage rating of 600/1000 V

Corporate Social Responsibility

Our unique CSR initiative Kelani Saviya set up to promote
professionalism in the Electricians occupation as well as encourage
the concept of a safe home continues to make a difference. The
key objective of this programme is to persuade youth to achieve high
standards in their chosen vocation as electricians and gain social
recognition as well as better career stability and prospects.
It has consistently been our premise to provide social dividends through our core competencies and our CSR
philosophy relates to the community through knowledge sharing for the betterment of the society as well
as the nation; through providing assistance to the needy and through actively protecting and preserving the
environment. An inherent part of the Company outlook and operations, our CSR initiatives are wholeheartedly
embraced by all our employees as well. Ever firm in our stance as a committed corporate citizen, several CSR
activities continued throughout the year under review too.
Our unique CSR initiative Kelani Saviya set up to promote professionalism in the Electricians occupation as well
as encourage the concept of a safe home continues to make a difference. The key objective of this programme
is to persuade youth to achieve high standards in their chosen vocation as electricians and gain social recognition
as well as better career stability and prospects. Set up in 2007, the course registered 149 students from across
the island to date, with over 50 achieving the required goals and completing all three levels to obtain full
qualification. The graduation ceremony took place in June this year under the patronage of Vice Chancellor,
University of Peradeniya, Prof. S.B.S. Abeykoon - one of the key founders of the programme. We continue to
make a solid commitment to this programme since its commencement in 2007.
The funding of undergraduate and postgraduate research projects in the cable industry related areas also
continued throughout the year reinforcing our commitment to education, and further initiatives are planned to
allow school and college students as well as trainee electricians to take part in factory visits to gain knowledge
first hand. The technical services department also hosts knowledge sharing seminars for Engineers from the
Ceylon Electricity Board as well as for students from technical colleges.
The Kelani Electricians Club - our pioneering effort towards raising the standards of electricians, both
professionally and socially, carries on its endeavours. Monthly seminars on usage, safety and the conservation of
electricity are carried out and are attended by electricians around the island. The Free Technical Advice Service
offered by the Company also continues to be popular not only with householders, but with electricians and
contractors alike, right across the island. In keeping with the Clubs objective of raising the profile of electricians
and helping to uplift their social standing, children of members are granted educational scholarships at different
levels, from primary to higher education. An insurance scheme for members is also in place to support and
provide assurance to their families.
Corporate Social Responsibility | Kelani Cables PLC | Annual Report 2009/10 21

Our commitment to uplift the motor rewinding industry also holds strong with the continuation of the training
programme launched last year with a view to improving their skills and confidence. Motor rewinding is more
or less a self-employment industry in Sri Lanka and by providing empowerment and support to them; we are
helping such efforts to flourish. Our database of motor winders is continuously updated and workshops are held
in areas across Sri Lanka for their benefit.
Community welfare has always remained an integral part of our CSR pledge with donations being made towards
many religious, social and educational causes, as well as the annual alms-giving to the Victoria Home. Substantial
contributions were also made towards the IDP relief effort.
In terms of the environment, measures that are already in place through stringent energy conservation and
green policies to alleviate any harmful impacts are monitored consistently, and diligently adhered to. We are ever
mindful of our commitment to preserving the well being of our earth and continue to do our utmost at every
possible turn.
Factory visit by Kelani Saviya students along with the lectures of the University of Peradeniya
Training for electricians
22 Kelani Cables PLC | Annual Report 2009/10 | Corporate Social Responsibility

Human Resources
With the HR function partnering with the core business operations of the
Company as a strategic partner, the future role of HR will move forward
towards the achievement of the key strategic objectives of the Company
in the coming year.
Annual Employees Day

The success of Kelani over the years has been due to its most valuable asset - Kelani people. The right talent and
the positive working environment is the fundamental base upon which Kelani has created a winning culture for
performance. The Company firmly believes in creating a culture of learning and thereby leading its employees
towards excellence.
Efficiency Through Technology

In 2009, the Companys HR initiatives focused primarily on integrating HR processes through its HR information
system enabling employees to be more efficient and productive. The ongoing implementation of HR information
system has integrated the workflow, leading to more interaction among employees. The user friendliness of
the kiosk system and the employee self-service portal, implemented in both Sinhala and English languages has
enabled employees to attend to their daily HR administration functions more efficiently.
Culture of Learning
Kelani actively strives towards creating a learning culture by utilising training and development as a tool towards
improving leadership, managerial and functional capability of its employees. The training calendar structured
for the year, is primarily based on the training needs identified through the performance appraisals and
recommendations made by heads of departments.
During the year, 33% of the training programmes addressed personality development while 44% addressed
managerial core competency development programmes and 23% addressed technical competency development
programmes. In addition, a series of customer service and selling skills programmes were conducted quarterly
this year as well. These programmes have been the key in building customer relationship and continuous
improvement of service skills of our island wide sales team.
Performance Management and Productivity Focus

The Companys management principles are attuned towards a performance culture and recognition. Employees
are provided with opportunities to advance in their personal career whilst aligning and achieving business
objectives. Furthermore, the Company continued its productivity initiatives across the organisation in the areas
of the Japanese 5S concept, quality circles and Kaizen to sustain the superior positions achieved during the past.
Annual Christmas Party
24 Kelani Cables PLC | Annual Report 2009/10 | Human Resources

Caring Employer
In addition to the formal financial rewards, career advancement opportunities, and recognition programmes
conferred to all employees, the Company also extends various initiatives that go beyond mere formal recognition.
Kelani continues to provide staff welfare, meals, uniforms, transport and medical facility free to all employees.
Children of employees who excel in GCE Ordinary Level and Advanced Level Examinations and gain entry to the
university are awarded scholarships. Financial assistance is extended to employees to support further education
of children of employees, renovation and building of houses, and in instances of critical illness of employees.
Balancing Work Life

During the year, several social events were organised through the Kelani welfare committee. The annual
employee day and the Christmas party are much-awaited events by employees. Employees were treated to a fun
filled day with games and dancing at Wadduwa Resort on the annual employee day. Participation of families of
employees at the annual Christmas party demonstrates the extent of Kelani family.
Sharing Knowledge
The second volume of the annual newsletter Pawura was released in August 2009. The newsletter consisting of
the Companys business news, activities, announcements, articles and employee creativity facilitates the process
of sharing knowledge and improving interaction across the organisation.
Reinforcing Employee Relations

Employee relations through open communication and participatory management has been the key driver of
Kelanis success. In 2009, the Joint Consultative Council concept was launched with the representation from all
levels of employees and all divisions. These interactive forums has confer employees an opportunity to voice their
suggestions, participate in the management and share the progress of the Company, creating a friendly culture
and neutral ground for open communication.
Future Outlook
With the HR function partnering with the core business operations of the Company as a strategic partner, the
future role of HR will move forward towards the achievement of the key strategic objectives of the Company in
the coming year.
Human Resources | Kelani Cables PLC | Annual Report 2009/10 25

Risk Management
Kelani Cables PLC has given due consideration to its risk management process in order to progress towards
achievement of its goals and objectives. The objective is to achieve and maintain maximum returns with
minimum possible risks. Once the risks pertaining to a particular business environment are identified, strategies
for managing them are formulated. Those strategies include avoiding of risk, or reducing the negative effects to
ensure the related risks are minimised where the complete elimination is not possible.
Risk Market Risk

Exposure Loss of market share or market leadership due to low quality
imported products, competitors, new entrants, drop in customer
preference and adverse economic conditions.
Strategies & Mitigatory action taken Strengthen market position by improving brand image and
ensuring availability of the products in various parts of the country.
Reduce dependency on one segment by balancing the focus to

other segments to create more revenues.
Ensure prevailing quality standards are met and strengthen the

relationship with distributors, dealers, institutional customers and
electricians by conducting conferences, seminars, sponsorships and
educational programmes.
Risk Operational Risk

Exposure Losses resulting from inadequate or failed internal processes, people
and systems.
Strategies & Mitigatory action taken Maintain objectivity and independence of the internal audit and
internal control function.
Seek continuous improvement of processes through process

documentation, root cause analysis, vendor performance
evaluation, customer satisfaction measurement, etc.
Risk Credit Risk

Exposure Loss of revenue due to risk associated with debtor defaults
Strategies & Mitigatory action taken Effective business specific credit policies.
Regular monitoring and debt collection procedures.
Risk associated with export credit sales is minimised through
Letters of Credit, advanced payment terms and bank guarantees.
Follow an assessment procedure to ensure credit worthiness of
customers.

Risk Liquidity & Cash Management
Exposure Possible negative effects on liquidity position.
Strategies & Mitigatory action taken Regular financial planning and monitoring systems are in place
to ensure that sufficient cash is available to meet all financial
commitments.
Risk Interest Rate Risk

Exposure Adverse affects of interest rate volatility.
Strategies & Mitigatory action taken Negotiate and take supplier credit to mitigate the loss due to
adverse fluctuations in local interest rates.
The Company has sufficient assets to offer as collateral for future
funding requirements to avoid adverse fluctuations.
Risk Currency Risk

Exposure Fluctuations in foreign currency rates of foreign currency
receipts and payments.
Strategies & Mitigatory action taken Use export proceeds to settle import payments wherever possible.
Risk Asset Risk

Exposure Potential losses that may be caused due to machine breakdowns and
damages from fire or theft.
Strategies & Mitigatory action taken Obtain comprehensive insurance covers for plant and machinery.
Carry out planned preventive maintenance programmes at
regular intervals.
Maintain fire fighting equipment within standards.
Upkeep security precautionary systems.
Risk Human Resource

Exposure Risk arising from inability to attract and retain skilled and experienced
staff, drop in productivity and quality and increase in human errors.
Strategies & Mitigatory action taken Strengthen employer-employee relationship.
Develop a highly loyal workforce and build long-term commitment
through continuous training and development, career planning
and performance based reward systems.
Ensure adaptability through training and adopting best practices.
Ensure compensation is aligned with market values.
Maintain healthy and cordial relationships with employees at all
levels through joint consultative committees.
Risk Management | Kelani Cables PLC | Annual Report 2009/10 27

Risk Technological and Quality Related Risk
Exposure Possibility of products or processes being outdated or obsolete due to
advanced technology.
Strategies & Mitigatory action taken Keep pace with current technological developments and quality
standards to avoid obsolescence.
Avoid producing stocks that do not meet required standards.
Develop a long-term plan to replace existing machines with
technologically advanced machines.
Obtain certifications from relevant authorities and ensure products
comply with most of the local and international standards.
Ensure the equipment required to test the quality of products are
calibrated and upgraded.
Risk Inventory and Management Risk

Exposure Risk of products being obsolete, accumulation of slow moving stocks
and sub-standard material being received.
Strategies & Mitigatory action taken Ensure monthly production is based on sales demand.
Carry out sales promotions to reduce slow moving stocks.
Ensure required quality standards are met at different stages to
verify quality, and maintain until the product is delivered.
Risk Investment in Capital

Exposure Risk of loss in present and future investments.
Strategies & Mitigatory action taken Investments in assets are properly planned and made on timely basis.
Reduce idle assets as far as possible.
Risk Information Systems

Exposure Possible risks associated with data security, hardware, software and
communication systems.
Strategies & Mitigatory action taken Data back ups are stored in outside locations.
Mirroring of hard disks with critical data.
Vendor agreements for support services and maintenance.
Regular upgrading of virus scanners and fire walls.
28 Kelani Cables PLC | Annual Report 2009/10 | Risk Management

Risk Environmental Issues
Exposure Adverse impact of operations to the environment.
Strategies & Mitigatory action taken Comply with the standards set by the relevant authorities and
ensure compliance.
Risk Legal and Regulatory Issues

Exposure Possible losses arising from non compliance with statutory and
regulatory requirements.
Strategies & Mitigatory action taken Comply with the requirements of statutory and regulatory bodies.
Obtain advice from Employers Federation when necessary.
Plan to minimise or take counter measures to reduce the impact
arising from changes to regulatory issues.
Risk Management | Kelani Cables PLC | Annual Report 2009/10 29

Corporate Governance
Kelani Cables PLC is committed to maintaining the highest standards of corporate governance, in compliance
with most of the provisions of the Code of Best Practice on Corporate Governance issued by The Institute of
Chartered Accountants of Sri Lanka and the rules for the Corporate Governance for listed Companies issued
jointly by The Institute of Chartered Accountants of Sri Lanka and the Securities & Exchange Commission.
The Companys compliance with the Corporate Governance principles is given below:
Board of Directors
Composition and Attendance at Meetings
The Board consists of six Directors of whom five are Non-Executive Directors. The names and profiles of the
Directors are given on pages 9 to 10 of this Report. They possess the skills experience and knowledge to set the
directions and oversee the operations of the Company.
The Board meets monthly, their attendance at meetings during the financial year under review were as follows:
Name of the Director Attendance
Executive Director
Mr. Hemantha Perera - Managing Director 12/12
Non-Executive Directors
Mr. U.G. Madanayake - Chairman 12/12
Mr. Suren Madanayake - Deputy Chairman 11/12
Mrs. N.C. Madanayake 09/12
Independent Non-Executive Directors

Dr. Bandula Perera 12/12
Dr. Ranjith Cabral 11/12
The Board conducts its meetings in a manner that the Board is in control of the affairs of the Company
and remains sensitive to the obligations of all stakeholders. The Board ensures that there is participation of
Independent and Non Independent Directors in their deliberation and the contributions of Independent Directors
are given due consideration.
Role and Responsibility of the Board

The Board is collectively responsible for the following:
Formulate, communicate, implement and monitor the business goals, objectives, strategies and policies
of the Company.
Review and approve the financial budgets and approve capital investments.
Review operational and functional performance.
Ensure due compliance with applicable laws of the country and institute best practices on ethical, health,
environmental and safety standards.
Ensure implementation of effective internal control system.

Approve the annual and interim Financial Statements prior to publication.
Determine the quantum of the interim dividends and recommend the final dividend for approval by the
shareholders.
Recommend the appointment or removal of the External Auditors subject to the approval of shareholders
at the Annual General Meeting.
Board Committees
The Board is assisted in fulfilling its responsibilities by two Board Committees which have been approved the
Board. They are the Remuneration Committee and the Audit Committee. Details of the Board Committees,
their composition and objectives are given below:
Remuneration Committee
The remuneration of the Executive Director is decided by the Remuneration Committee of the Listed Parent
Company. This Committee comprises two Non-Executive Directors of the Listed Parent CompanyACL Cables
PLC., and their names are given below:
Mr. Ajit M. De. S. Jayaratne - Chairman of the Committee.
Mr. Rajiv Casichetty
The Committee formulates and reviews remuneration packages of the Executive Director. No Director is involved
in determining his or her own remuneration.
The total remuneration and fees paid to Executive and Non-Executive Directors of the Company is disclosed in
Note 6 to the Financial Statements.
Audit Committee
The Audit Committee is being formed and the reviews are scheduled to commence from the second quarter
of the ensuing year.
Board Independence
Accountability and Audit
The Financial Statements of the Company and its subsidiaries that are incorporated in this Report have been
prepared in accordance with the Sri Lanka Accounting Standards and the Companies Act No. 7 of 2007.
The Consolidated Financial Statements and the Financial Statements of the Company were audited by
Messrs. KPMG Ford, Rhodes Thornton & Co., Chartered Accountants.
Report of the Directors is provided on pages 35 to 37 of the Annual Report. The Auditors Report on the
Financial Statements of the year ended 31st March 2010 is presented on page 41 of this Report.
The Management Reports of the Company is presented on pages 3 to 8 of this Report. Going Concern
Declaration by Board of Directors in this regard is presented in the Report of Directors on page 37 of this Report.
Corporate Governance | Kelani Cables PLC | Annual Report 2009/10 31

Internal Controls
The Board of Directors acknowledges its overall responsibility for maintaining a sound system of internal controls
to safeguard shareholders investments and the Companys assets.
The Statement of Directors Responsibilities for the Financial Statements is given on page 38 of this Report.
Compliance with the Colombo Stock Exchange Rules on Corporate Governance.
Rule No. Subject Requirement Compliance Status Remarks
7.10.1 (a) Non-Executive Two or one third of the total Compliant Five out of six Directors are
Directors number of Directors shall be Non-Executive Directors.
Non-Executive Directors,
whichever is higher
7.10.2 Independent Two or one third of Non-Executive Compliant Two Directors are
Directors Directors whichever is higher shall independent.
be independent
Each Non-Executive Director Compliant Non-Executive Directors

should submit a declaration of have submitted the
independence/non-independence in declaration.
the prescribed format.
7.10.3 Disclosures Names of the independent Compliant Refer page 30 under the
relating to Directors should be disclosed in heading, Composition
Directors the Annual Report and Attendance at
Meetings.
A brief resum of each Director Compliant Refer pages 9 to 10 on

should be included in the Annual Board of Directors.
Report including the area of
expertise
Company should send a brief Compliant Forwarded.

resum upon appointment of
each new Director to the Stock
Exchange for dissemination
to the public.
32 Kelani Cables PLC | Annual Report 2009/10 | Corporate Governance

Rule No. Subject Requirement Compliance Status Remarks
7.10.5 Remuneration A listed Company shall have a Compliant Remuneration

Committee Remuneration Committee Committee of the listed
Parent Company acts
as the Remuneration
Committee of the
Company and details are
given on page 34 of
this Report.
7.10.5 (a) Composition of Shall comprise Non-Executive Compliant The Committee consists
Remuneration Directors, majority of whom shall of two Independent Non-
Committee be independent Executive Directors
of the listed Parent
Company.
7.10.5 (b) Functions of Committee shall recommend Compliant Refer Remuneration

Remuneration the remuneration of the Chief Committee Report on
Committee Executive Officer and Executive page 34 which sets out
Directors. the functions of the
Committee
In a situation where both the
parent Company and the
subsidiary are listed entities, the
Remuneration Committee of the
parent company may be permitted
to function as the Remuneration
Committee of the subsidiary
7.10.5 (c) Disclosure in the Annual Report should set out;

Annual Report a. Names of Directors comprising Compliant Refer page 31
relating to the Remuneration Committee
Remuneration
b. Statement of remuneration Compliant Refer page 34
Committee
policy
c. Aggregate remuneration Compliant Refer page 55
paid to Executive and Non-
Executive Directors
7.10.6 Audit A Listed company shall have an Committee Reviews scheduled

Committee Audit Committee being formed. to commence during
2010/11.
Corporate Governance | Kelani Cables PLC | Annual Report 2009/10 33

Remuneration Committee Report
The Remuneration Committee comprises of the two Non-Executive Directors of the Holding Company and names
of the members are given on page 31 of this Report. The members of the Committee and the Chairman of the
Committee are appointed from time to time by a resolution of the Board. The Remuneration Committee formally
met once in the last financial year.
The Group policy on remuneration packages, is to attract and retain the best professional and managerial talent
to the Group and to motivate and encourage them to perform at the highest possible level. The Group has a
structured and professional methodology in evaluating the performance of employees.
The Remuneration Committee determined the Companys Remuneration Policy of Executive Directors,
considering the performance standards and existing industry practices. No Executive Director is involved in
deciding his own remuneration package.
In conclusion, my sincere thanks to Mr. Rajiv Casie Chitty, member of the Committee for his valuable contribution.
(Sgd.)
Ajit Jayaratne
Chairman of the Remuneration Committee
22nd June 2010

Report of the Directors
The Directors have pleasure in presenting their Report to the shareholders, together with the Audited
Consolidated Financial Statements for the year ended 31st March 2010.
Principal Activities
The principal activities of the Company are manufacturing and selling of Power Cables, Telecommunication
Cables and Enamelled Winding Wires.
Review of Operations
A review of the financial and operational performance of the Company during the year is contained in the
Chairmans Review (pages 3 to 4), Managing Directors Review (pages 5 to 8) and Operational Review sections of
this Annual Report (pages 14 to 17).
Auditors
The Report of the Auditors on the Financial Statements is given on page 41.
Financial Statements
The Audited Financial Statements are given on pages 41 to 68 of this Report. The said Financial Statements are
prepared in compliance with the requirements of Sections 151 (2) and 153 (2) to 153 (7) of the Companies
Act No. 7 of 2007.
Accounting Policies
The accounting policies adopted in preparation of the Financial Statements are given on pages 46 to 53 in this
Annual Report.
Board of Directors
The Board of Directors of the Company consists of six Directors throughout the financial year and their profiles
are given on pages 9 to 10.
The Directors retiring by rotation in terms of Section 85 of Articles of Association will be Mrs. N.C. Madanayake
and Dr. Ranjith Cabral who being eligible in terms of Section 86 of Articles of Association, are recommended for
re-election.
Directors Responsibilities for Financial Statements

The Statement of the Directors Responsibilities for Financial Statements is given on page 38 of this Annual Report.
Events Occurring after the Balance Sheet Date

No circumstance have arisen since the Balance Sheet date which would require adjustments to or disclosure in
the Financial Statements other than those disclosed in Note 33 to the Financial Statements.

Interest Register
The Interest Register is maintained by the Company, as per the Companies Act No. 7 of 2007. All Directors
have made declarations in accordance with the aforesaid Act. The Interest Register is available for inspection
as required by the Companies Act at the registered office of the Company.
Directors Interest in Shares of the Company

The shareholdings of Directors at the beginning and at the end of the year were as follows:
No. of Shares % Holding

As at 31st March 2010 2009 2010 2009
Mr.U.G.Madanayake Nil Nil Nil Nil

Mr.Suren Madanayake 14,000 7,000 0.06 0.06
Mr.Hemantha Perera Nil Nil Nil Nil
Mrs. N.C.Madanayake Nil Nil Nil Nil
Dr. Bandula Perera Nil Nil Nil Nil
Dr. Ranjith Cabral Nil Nil Nil Nil

Directors Interests in Contracts
Directors interests in contracts of the Company are disclosed in Note 30 to the Financial Statements and no
Director of the Company is directly or indirectly interested in any other contracts with the Company.
Directors Remuneration
Remuneration received by the Directors is given in Note 6 to the Financial Statements, on page 55.
Corporate Governance
The management and operation of the Company are effectively directed and controlled within the Corporate
Governance framework as set out in pages 30 to 33 in this Report.
Directors Meetings
The details of Directors meetings are set out on page 30 under Corporate Governance of the Annual Report.
Audit Committee
Please refer page 31 on Corporate Governance.
Remuneration Committee
Please refer page 31 of this Report.
36 Kelani Cables PLC | Annual Report 2009/10 | Report of the Directors

Dividends
The Board of Directors has declared an interim dividend of Rs. 2.00 per Share. This dividend was paid to
shareholders on 22nd February 2010, subject to satisfactory compliance of the Solvency Test required by the
Companies Act No. 07 of 2007.

Going Concern
The Board is satisfied that the Company will continue its operations in the foreseeable future. For this reason,
the Company continues to adopt the going concern basis in preparing the Financial Statements.
Stated Capital
The stated capital of the Company as at 31st March 2010 was Rs. 218,000,000.00 and was unchanged
during the year.
The Company has split its each share in issue as at 22nd March 2010 into two. At the conclusion of subdivision
the total number of shares in issue increased to 21,800,000 shares from 10,900,000 shares without changing
the stated capital as approved by the shareholders by way of an Ordinary Resolution passed at the Extraordinary
General Meeting held on 22nd March 2010.
Statutory Payments
All known statutory payments have been made by the Company.
Donations to Charity
Donations amounting to Rs. 501,740/- were made during the year under review.
By Order of the Board
(Sgd.)
Corporate Affairs (Private) Limited
Secretaries
22nd June 2010
Report of the Directors | Kelani Cables PLC | Annual Report 2009/10 37

Directors Responsibility for Financial Reporting
The Board accepts responsibility for the preparation and fair presentation of Financial Statements in accordance
with Sri Lanka Accounting Standards. This responsibility includes: designing, implementing and maintaining
internal controls relevant to the preparation and fair presentation of Financial Statements that are free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies;
and making accounting estimates that are reasonable in the circumstance.
In discharging this responsibility, the Directors have instituted a system of internal financial controls and a system for
monitoring its effectiveness. The system of controls provide reasonable and not absolute assurance of safeguarding
of Companys assets, maintenance of proper accounting records and the reliability of financial information.
The Financial Statements reflect a true and fair view of the state of affairs of the Company and the Group as
at 31st March 2010 and provide the information required by the Companies Act No. 7 of 2007. The Financial
Statements have been prepared on the going concern basis as the Board is satisfied that the Company will
continue its operations in the foreseeable future.
(Sgd.)
Secretaries
22nd June 2010

Contents
Financial Reports
41 Independent Auditors Report
42 Income Statement
43 Balance Sheet
44 Statement of Changes in Equity
45 Cash Flow Statement
46 Notes to the Financial Statements
2009/10
Independent Auditors Report
TO THE SHAREHOLDERS OF KELANI CABLES PLC

Report on the Financial Statements
We have audited the accompanying financial statements of Kelani Cables PLC, the consolidated financial statements
of the Company and its Subsidiary as at that date which comprise the balance sheet as at 31st March 2010, and the
income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory notes as set out on pages 42 to 68 of the Annual Report.
Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Sri Lanka Accounting Standards. This responsibility includes; designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates
that are reasonable in the circumstances.
Scope of Audit and Basis of Opinion

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting policies used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, so far as appears from our examination, the Company maintained proper accounting records for the year
ended 31st March 2010 and the financial statements give a true and fair view of the Companys state of affairs as at
31st March 2010 and its profit and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.
In our opinion, the consolidated financial statements give a true and fair view of the state of affairs as at March 31, 2010
and the profit and cash flows for the year then ended, in accordance with Sri Lanka Accounting Standards, of the Company
and its Subsidiary dealt with thereby, so far as concerns the members of the Company.
Report on Other Legal and Regulatory Requirements

These financial statements also comply with the requirements of Section 153 (2) to 153 (7) of the Companies
Act No. 07 of 2007.
Chartered Accountants
Colombo
22nd June 2010

Income Statement
Consolidated Company
For the year ended 31st March 2010 2009 2010 2009
Note Rs. Rs. Rs. Rs.
Gross Turnover 3 3,322,756,298 2,830,319,029 3,322,756,298 2,830,319,029

Turnover Tax (542,688) (487,447) (542,688) (487,447)
Net Turnover 3,322,213,610 2,829,831,582 3,322,213,610 2,829,831,582
Cost of Sales (2,626,784,185) (2,361,116,706) (2,626,784,185) (2,361,116,706)
Gross Profit 695,429,425 468,714,876 695,429,425 468,714,876
Change in Fair Value of

Investment Property 16,000,000 16,000,000
Other Income 4 3,911,862 5,838,579 3,911,862 5,838,579
Distribution Expenses (237,801,640) (178,559,563) (237,801,640) (178,559,563)
Administrative Expenses (136,540,651) (121,576,333) (136,540,731) (121,576,333)
Finance Income 11,931,210 15,749,631 11,931,210 15,749,631

Finance Cost (35,018,788) (72,988,184) (35,018,788) (72,988,184)
Net Finance Cost 5 (23,087,578) (57,238,553) (23,087,578) (57,238,553)

Share of Equity Accounted
Investee Profit/(Loss) (22,451,068) 1,881,780
Profit Before Tax 6 279,460,350 135,060,786 301,911,338 133,179,006
Income Tax Expense 7 (139,782,558) (40,092,533) (139,782,558) (40,092,533)
Profit for the Period 139,677,792 94,968,253 162,128,780 93,086,473
Attributable to:
Equity Holders of the Company 139,677,792 94,968,253 162,128,780 93,086,473
Minority Interest
Profit for the Period 139,677,792 94,968,253 162,128,780 93,086,473
Earnings Per Share

Basic Earnings per Share (Rs.) 8 6.41 4.36 7.44 4.27
Diluted Earnings per Share (Rs.) 8 6.41 4.36 7.44 4.27
Dividend per Share (Rs.) 9 1.00 1.00 1.00 1.00
Notes from pages 46 to 68 form an integral part of these Financial Statements.

Figures in brackets indicate deductions.

Balance Sheet
As at 31st March 2010 2009 2010 2009
Note Rs. Rs. Rs. Rs.
Assets
Non-Current Assets
Property, Plant & Equipment 10 340,293,640 331,191,905 340,293,640 331,191,905
Investment Property 11 120,000,000 120,000,000 120,000,000 120,000,000
Investment in Subsidiary 12 80
Investment in Equity Accounted Investee 13 9,511,540 31,962,608 51,200,000 51,200,000
Total Non-Current Assets 469,805,180 483,154,513 511,493,640 502,391,985
Current Assets
Inventories 14 950,371,744 458,000,244 950,371,744 458,000,244
Trade and Other Receivables 15 795,715,107 704,809,055 795,715,107 704,809,055
Amount due from Related Companies 16 42,059,789 44,965,370 42,059,789 44,965,370
Value Added Tax Recoverable 143,957,809 94,282,915 143,957,809 94,282,915
Deposits and Prepayments 7,000,841 7,065,220 7,000,841 7,065,220
Short-Term Deposits 183,792,867 173,000,856 183,792,867 173,000,856
Cash and Cash Equivalents 17 6,967,300 2,750,452 6,967,300 2,750,452
Total Current Assets 2,129,865,457 1,484,874,112 2,129,865,457 1,484,874,112
Total Assets 2,599,670,637 1,968,028,625 2,641,359,097 1,987,266,097
Equity and Liabilities
Equity
Stated Capital 18 218,000,000 218,000,000 218,000,000 218,000,000
Capital Reserves 19 121,976,514 114,012,688 121,976,514 114,012,688
General Reserves 20 431,136,000 431,136,000 431,136,000 431,136,000
Retained Earnings 21 746,609,488 650,531,696 788,297,948 669,769,168
Total Equity Attributable to
Equity Holders of the Company 1,517,722,002 1,413,680,384 1,559,410,462 1,432,917,856
Minority Interest
Total Equity 1,517,722,002 1,413,680,384 1,559,410,462 1,432,917,856
Non-Current Liabilities
Retirement Benefit Obligations 22 31,857,897 27,496,735 31,857,897 27,496,735
Provision for Payment in Lieu of
- Employee Share Issue Scheme 23 2,920,369 3,098,880 2,920,369 3,098,880
Deferred Tax Liabilities 24 24,739,684 17,052,424 24,739,684 17,052,424
Total Non-Current Liabilities 59,517,950 47,648,039 59,517,950 47,648,039
Current Liabilities
Trade Payable 25 378,712,994 177,734,301 378,712,994 177,734,301
Other Payables 26 56,960,328 58,819,738 56,960,328 58,819,738
Income Tax Payable 27 166,229,155 69,138,205 166,229,155 69,138,205
Dividend Payable 28 4,698,206 3,661,520 4,698,206 3,661,520
Interest-Bearing Loans and Borrowings 29 415,830,002 197,346,438 415,830,002 197,346,438
Total Current Liabilities 1,022,430,685 506,700,202 1,022,430,685 506,700,202
Total Liabilities 1,081,948,635 554,348,241 1,081,948,635 554,348,241
Total Equity and Liabilities 2,599,670,637 1,968,028,625 2,641,359,097 1,987,266,097
It is certified that these Financial Statements have been prepared in compliance with the requirement of Companies Act No. 7 of 2007.
Hemamala Karunasekara
Finance Manager
The Directors are responsible for the preparation and presentation of these Financial Statements.
Signed for and on behalf of the Board,
U.G. Madanayake Hemantha Perera

Chairman Managing Director
Colombo
22nd June 2010

Statement of Changes in Equity
Consolidated
Stated Capital General Retained Total
Capital Reserves Reserves Earnings
Rs. Rs. Rs. Rs. Rs.
Balance as at 31st March 2008 218,000,000 114,012,688 431,136,000 578,386,704 1,341,535,392

Effect of change in accounting policy due to
adoption of SLAS 16 (Revised 2006) - Note 22.1 1,701,739 1,701,739
Revised Balance as at 1st April 2008 218,000,000 114,012,688 431,136,000 580,088,443 1,343,237,131
Final dividend - 2007/08 (24,525,000) (24,525,000)
Profit for the year 94,968,253 94,968,253
Balance as at 1st April 2009 218,000,000 114,012,688 431,136,000 650,531,696 1,413,680,384
Final dividend - 2008/09 (21,800,000) (21,800,000)
Interim dividend - 2009/10 (21,800,000) (21,800,000)
Suplus on revaluation 16,155,431 16,155,431
Deferred tax effect on revaluation (8,191,605) (8,191,605)
Company
Stated Capital Revenue Retained Total
Capital Reserves Reserves Earnings
Rs. Rs. Rs. Rs. Rs.

adoption of SLAS 16 (Revised 2006) - Note 22.1 1,701,739 1,701,739
Revised Balance as at 1st April 2008 218,000,000 114,012,688 431,136,000 601,207,695 1,364,356,383
Final dividend - 2007/08 (24,525,000) (24,525,000)
Final dividend - 2008/09 (21,800,000) (21,800,000)
Interim dividend - 2009/10 (21,800,000) (21,800,000)
Surplus on revaluation 16,155,431 16,155,431
Deferred tax effect on revaluation (8,191,605) (8,191,605)


Cash Flow Statement
For the year ended 31st March 2010 2009 2010 2009
Rs. Rs. Rs. Rs.
Cash Flows from Operating Activities

Profit before Taxation 279,460,350 135,060,786 301,911,338 133,179,006
Adjustments for
Share of Loss/(Profit) from Equity Accounted Investee 22,451,068 (1,881,780)
Interest Income (11,931,210) (15,749,631) (11,931,210) (15,749,631)
Interest Expense 31,988,143 60,580,222 31,988,143 60,580,222
Depreciation of Property, Plant & Equipment 28,764,149 27,296,132 28,764,149 27,296,132
Provision for Investment in Subsidiary 80
Provision for Bad and Doubtful Debts 20,728,256 7,056,384 20,728,256 7,056,384
Provision for Inventories 12,634,264 2,900,337 12,634,264 2,900,337
Government Grant Written Back (864,000) (864,000)
Gain on Revaluation of Investment Property (16,000,000) (16,000,000)
Gain on Disposal of Property, Plant & Equipment (35,714) (1,531,870) (35,714) (1,531,870)
Provision for Retiring Gratuity 5,577,438 7,609,167 5,577,438 7,609,167
Operating Profit before Working Capital Changes 389,636,744 204,475,747 389,636,744 204,475,747
Changes in Working Capital
(Increase)/Decrease in Inventories (505,005,764) 138,204,295 (505,005,764) 138,204,295
(Increase)/Decrease in Trade and Other Receivables (161,309,202) 246,867,729 (161,309,202) 246,867,729
(Increase)/Decrease in Amount due from
Related Companies 2,905,581 18,976,808 2,905,581 18,976,808
(Increase)/Decrease in Deposits and Prepayments 64,379 (2,172,459) 64,379 (2,172,459)
Increase/(Decrease) in Trade Payables 200,978,693 (271,996,116) 200,978,693 (271,996,116)
Decrease in Amount due to Related Companies (4,592,883) (4,592,883)
Increase/(Decrease) in Other Payables (1,859,410) 24,824,781 (1,859,410) 24,824,781
Cash-Generated from Operations (74,588,979) 354,376,662 (74,588,979) 354,376,662
Retiring Gratuity Paid (1,216,276) (3,822,209) (1,216,276) (3,822,209)
Payment for Payment in Lieu of Employee
Share Issue Scheme (178,511) (393,283) (178,511) (393,283)
Income Tax Paid (43,195,953) (40,518,879) (43,195,953) (40,518,879)
Interest Paid (31,988,143) (60,580,222) (31,988,143) (60,580,222)
Net Cash Inflow/(Outflow) from
Operating Activities (151,167,862) 249,273,309 (151,167,862) 249,273,309
Cash Flows from Investing Activities

Proceeds from Disposal of Property,
Plant & Equipment 35,714 75,217,100 35,714 75,217,100
Purchase of Property, Plant & Equipment (19,055,640) (121,096,784) (19,055,640) (121,096,784)
Additions to Capital Work-in-Progress (2,654,813) (20,752,163) (2,654,813) (20,752,163)
Interest Received 11,931,210 15,749,631 11,931,210 15,749,631
Net Cash Inflow/(Outflow) From Investing Activities (9,743,529) (50,882,216) (9,743,529) (50,882,216)
Cash Flows from Financing Activities
Dividend Paid (42,563,314) (24,242,529) (42,563,314) (24,242,529)
Net Cash Inflow/(Outflow) from Financing Activities (42,563,314) (24,242,529) (42,563,314) (24,242,529)
Net Increase/(Decrease) in Cash and
Cash Equivalents (203,474,705) 174,148,564 (203,474,705) 174,148,564
Cash and Cash Equivalents at beginning of the year (21,595,130) (195,743,694) (21,595,130) (195,743,694)
Cash and Cash Equivalents at end of the year (225,069,835) (21,595,130) (225,069,835) (21,595,130)
Analysis of Cash and Cash Equivalents
At End of the Year
Cash at Banks and in Hand 6,967,300 2,750,452 6,967,300 2,750,452
Short-Term Loans (224,000,000) (23,424,549) (224,000,000) (23,424,549)
Bank Overdraft (191,830,002) (173,921,889) (191,830,002) (173,921,889)
(225,069,835) (21,595,130) (225,069,835) (21,595,130)


Notes to the Financial Statements
Reporting Entity
General
Kelani Cables PLC is a limited liability Company incorporated and domiciled in Sri Lanka. The Registered Office of the
Company is located at No. 21, Norris canal Road, Colombo 10 and the principal place of business is situated at the
Wewelduwa, Kelaniya (PO Box 14).
In the Report of the Directors and in the Financial Statements, the Company refers to Kelani Cables PLC as the Holding
Company and the Group refers to the Consolidated Financial Statements of Kelani Cables PLC and its subsidiary,
Kelani Electrical Accessories (Pvt) Limited (together referred to as the Group) and the Groups interest in an equity
accounted investee.
Companies in the Group

Subsidiary - A fully-owned subsidiary, Kelani Electrical Accessories (Pvt) Limited, has been dormant since the cessation
of operations in September 1995.
Equity accounted investee of the Group, whose results have been included in the Financial Statements is;
ACL - Kelani Magnet Wire (Pvt) Limited
All the above Companies are incorporated in Sri Lanka.

The Financial Statements of all the Companies in the Group are prepared for a common financial year, which ends on
31st March.
Parent Enterprise and Ultimate Parent Enterprise

The Companys ultimate parent undertaking and controlling party is ACL Cables PLC, which is incorporated in Sri Lanka.
Date of Authorisation of Issue

The Financial Statements for the year ended 31st March 2010 were authorised for issue in accordance with a resolution
of the Board of Directors on 22nd June 2010.
1. Basis of Preparation
1.1 Statement of Compliance
The Financial Statements have been prepared in accordance with Sri Lanka Accounting Standards (SLASs), adopted by
the Institute of Chartered Accountants of Sri Lanka (ICASL), and the requirements of the Companies Act No. 07 of 2007
and Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995
1.2 Basis of Measurement

The Financial Statements have been prepared on the historical cost basis except that certain land and buildings are
measured/stated at fair value as explained in Note 10 to the Financial Statements.
1.3 Functional & Presentation Currency

The financial information is presented in Sri Lankan Rupees, which is the Groups functional currency.

1.4 Use of Estimates and Judgements
The preparation of Financial Statements in conformity with SLAS requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates and judgemental decisions.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods.
Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in the Financial Statements is included in the following Notes:
Note 22 - Measurement of defined benefit obligations
2. Significant Accounting Policies

The accounting policies set out below are consistent with those used in the previous year. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Certain comparative amounts have been reclassified to conform to the current years presentation.
The Directors have made an assessment of the Companys ability to continue as a going concern in the foreseeable
future, and they do not foresee a need for liquidation or cessation of trading.
2.1 Basis of Consolidation

2.1.1 Subsidiaries
Subsidiaries are those entities controlled by the Group. Control exists when the Group has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential
voting rights are taken into account. The Financial Statements of the subsidiaries are included in the consolidated
Financial Statements from the date that control commences until the date that control ceases.
2.1.2 Equity Accounted Investees

Equity accounted investees are those entities in which the Group has significant influence, but not control, over financial
and operating policies. Significant influence is presumed to exist when the Group holds between 20 and 50 percent of the
voting power of another entity. Equity accounted investees are accounted for using the equity method and are recognised
initially at cost. The consolidated Financial Statements include the Groups share of the income and expenses and
equity movements of equity accounted investee, from the date that significant influence commences until the date that
significant influence ceases. When the Groups share of losses exceeds its investment in an equity accounted investee, the
carrying amount of that interest is reduced to nil and the recognition of further losses is discontinued except to the extent
that the Group has incurred obligations or has made payments on behalf of the investee.
Notes to the Financial Statements | Kelani Cables PLC | Annual Report 2009/10 47
2.1.3 Transactions Eliminated on Consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are
eliminated in full when preparing the consolidated Financial Statements. Unrealised gains arising from transactions with equity
accounted investees are eliminated against the investment to the extent of the Groups interest in the investee. Unrealised
losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
2.1.4 Goodwill
Goodwill arising on an acquisition represents the excess of the cost of acquisition over the fair value of the net assets
acquired. Goodwill is measured at cost, less accumulated impairment losses. In respect of equity accounted investees,
the carrying amount of goodwill is included in the carrying amount of the investment.
2.2 Foreign Currency

2.2.1 Foreign Currency Transactions
Transactions in foreign currencies are translated into the Sri Lankan Rupees at exchange rates applicable at the dates of
the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are re-translated
to the Sri Lankan Rupees at the exchange rate ruling at that date. Foreign currency differences arising on translation are
recognised in profit and loss.
.
2.3 Assets and Bases of their Valuation
Assets classified as current assets on the Balance Sheet are cash and bank balances and those which are expected to
be realised in cash during the normal operating cycle of the Companys business or within one year from the reporting
date, whichever is shorter.
2.3.1 Property, Plant & Equipment

Items of Property, Plant & Equipment are measured at cost (or at fair value in the case of land), less accumulated
depreciation and accumulated impairment losses.
2.3.1.1 Owned Assets

The cost of Property, Plant & Equipment includes expenditures that are directly attributable to the acquisition of the
asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly
attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing
the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the
related equipment is capitalised as part of that equipment.
A revaluation of land & building is done when there is a substantial difference between the fair value and the carrying
amount of the land, and is undertaken by professionally qualified valuers.
Increases in the carrying amount on revaluation are credited to the revaluation reserve in shareholders equity. Decreases
that offset previous increases of the same individual asset are charged against revaluation reserve directly in equity. All
other decreases are expensed in profit and loss.
48 Kelani Cables PLC | Annual Report 2009/10 | Notes to the Financial Statements
Gains and losses arising from disposal of Property, Plant and Equipment are determined by comparing the proceeds
from disposal with the carrying amount of Property, Plant and Equipment and are recognised net within other income
in profit and loss. When revalued assets are sold, the amounts included in the revaluation surplus reserve are transferred
to retained earnings.
2.3.2 Investment Property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale
in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes.
Investment property is measured at fair value with any change therein recognised in profit and loss.
2.3.3 Subsequent Expenditure

The cost of replacing part of an item of Property, Plant & Equipment is recognised in the carrying amount of the item
if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be
measured reliably.
The carrying amount of those parts that are replaced is derecognised in accordance with the derecognition policy
given below:
The costs of the day-to-day servicing of Property, Plant & Equipment are recognised in profit and loss as incurred.
2.3.4 Derecognition
The carrying amount of an item of Property, Plant and Equipment is derecognised on disposal or when no future
economic benefits are expected from its use or disposal. Gains or losses on derecognition are recognised in profit and
loss and gains are not classified as revenue.
2.3.5 Depreciation
Depreciation is recognised in profit and loss on a straight-line basis over the estimated useful lives of each part of an
item of Property, Plant & Equipment, Freehold land is not depreciated.
The estimated useful lives for the current and comparative periods are as follows:
Buildings 25 years
Plant and Machinery 10 years
Electrical Fittings 10 years
Office Equipment 10 years
Furniture and Fittings 10 years
Motor Vehicles 5 years
Business Machines 5 years
Software 1 year
Depreciation of an asset begins when it is available for use and ceases at the earlier of the date on which the asset is
classified as held for sale or is derecognised.
Depreciation methods, useful lives and residual values are reassessed at the reporting date.
2.3.6 Investments
2.3.6.1 Current Investments
Current investments are stated at lower of cost and market value determined on an aggregate portfolio basis.
An impairment loss will be recognised when the subsequent write down of the asset to fair value less cost to sell is
lower than the value previously recognised. A gain will be recognised for any subsequent increase in fair value less cost
to sell of an asset, not exceeding the cumulative impairment loss that has been recognised.
2.3.6.2 Non-Current Investments

Quoted and unquoted investments in shares held on long-term basis are measured at cost.
In the parent Companys Financial Statements, investments in subsidiaries and equity accounted investee are carried at
cost, less provision for fall in value.
Provision for fall in value is made when in the opinion of the Directors there has been a decline other than temporary in
the value of the investment.
2.3.7 Inventories
Inventories are measured at the lower of cost and net realisable value, after making due allowances for obsolete
and slow moving items. Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated cost of completion and selling expenses. The cost of inventories is based on weighted average cost.
2.3.8 Trade and Other Receivables

Trade and other receivables are stated at the amounts they are estimated to realise net of provisions for bad and
doubtful debts.
Other receivables and dues from related parties are recognised at cost, less provision for bad and doubtful receivables.
2.3.9 Cash and Cash Equivalents

Cash and cash equivalents comprise cash balances and short-term deposits. Bank overdrafts that are repayable on
demand form an integral part of the Groups cash management are included as a component of cash and cash
equivalents for the purpose of the Statement of Cash Flows.
2.3.10 Impairment
The carrying amounts of the Groups assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the assets recoverable amount is estimated.
The recoverable amount of an asset or CGU (Cash Generating Unit) is the greater of its value in use and its fair value
less cost to sell. In assessing value in use, the estimated future cash flows are discounted to present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to that asset. A CGU
is the smallest identifiable asset group that generates cash flows that are largely independent from other asset groups.
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first
to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amount of other
assets in the unit on a pro rata basis.
Reversal of impairment losses are recognised only to the extent that the assets carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
2.4 Liabilities and Provisions

Liabilities classified as current liabilities on the Balance Sheet are those which fall due for payment on demand or within
one year from the reporting date. Non-current liabilities are those balances that fall due for payment later than one year
from the reporting date.
All known liabilities have been accounted for in preparing the Financial Statements.
2.4.1 Employee Benefits

2.4.1.1 Defined Contribution Plan
A defined contribution plan is a post- employment benefit plan under which an entity pays a fixed contribution into a
separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to
Provident and Trust Funds covering all employees are recognised as an expense in profit and loss as incurred.
2.4.1.2 Defined Benefit Plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The liability recognised
in the Financial Statements in respect of defined benefit plans is the present value of the defined benefit obligation as at
the reporting date. The defined benefit obligation is calculated by a Qualified Actuary as at the reporting date using the
Projected Unit Credit (PUC) method as recommended by Sri Lanka Accounting Standard No. 16 Employee Benefits.
The actuarial valuation involves making assumptions about discount rate, salary increment rate and balance service
period of employees. Due to the long-term nature of the plans such estimates are subject to significant uncertainty.
However according to the Payment of Gratuity Act No. 12 of 1983, the liability for payment to an employee arises only
after the completion of 5 years continued service.
The liability is not externally funded.
2.4.2 Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
2.4.3 Trade and Other Payables

Trade and other payables are stated at their cost.
2.5 Income Statements
For the purpose of presentation of the Income Statement, the function of the expenses method is adopted, as it represents
fairly the elements of Company performance.
2.5.1 Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value
of the consideration received or receivable, net of returns and allowances, trade discounts and turnover taxes. The
following specific criteria are used for the purpose of recognition of revenue:
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been
transferred to the buyer which normally occurs upon the delivery of goods.
Interest Income is recognised in the profit and loss as it accrues.
Net gains/(losses) of a revenue nature on the disposal of Property, Plant & Equipment and other non-current assets
including investments have been accounted for in profit and loss, having deducted from proceeds on disposal, the
carrying amount of the assets and related selling expenses.
2.5.2 Expenses
All expenditure incurred in the running of the business have been charged to income in arriving at the profit for the year.
Repairs and renewals are charged to profit and loss in the year in which the expenditure is incurred.
2.5.2.1 Borrowing Cost

Borrowing costs are recognised as an expense in the period in which they are incurred.
2.5.2.2 Net Finance Cost

Finance income comprises interest income on funds invested, dividend income and gain on translation of foreign currency.
Financing expenses comprise interest payable on borrowings and loss on translation of foreign currency. The interest
expense component of finance lease payments is recognised in profit and loss using the effective interest rate method.
2.5.2.3 Income Tax Expense

Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the
extent that it relates to items recognised directly in equity, when it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the reporting date
and any adjustments to tax payable in respect of previous years.
Deferred tax is recognised using the Balance Sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the
extent that it is no longer probable that the related tax benefit will be realised.
2.6 General
2.6.1 Cash Flow Statement
The Cash Flow Statement has been prepared using the indirect method. Interest paid is classified as operating cash
flows, interest and dividends received are classified as investing cash flows while dividends paid and Government Grants
received are classified as financing cash flows for the purpose of presenting the Cash Flow Statement.
2.6.2 Events Occurring After the Balance Sheet Date

All material post-Balance Sheet events have been considered and disclosed or adjusted where applicable.
2.6.3 Movement in Reserves

Movements in reserves are disclosed in the Statement of Changes in Equity.
2.6.4 Comparative Figures

Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current financial year.
2.6.5 Capital Commitments and Contingencies

Contingencies are possible assets or obligations that arise from past events and would be confirmed on the occurrence
or non-occurrence of uncertain future events which are beyond the Companys control. Capital Commitments and
Contingencies have been disclosed in the respective Notes to the Accounts.
2.6.6 Earnings Per Share

The Group presents basic and diluted earnings per share (EPS) for its ordinary shares. Basic EPS is calculated by dividing the
profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders
and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.
2.6.7 New Standards and Interpretations not yet Adopted

The Institute of Chartered Accountants of Sri Lanka has issued the following two new Standards, which become
effective for annual periods beginning on or after 01st January 2011. Accordingly, these Standards have not been
applied in preparing these Financial Statements as they are not effective for the year ended 31st March 2010.
Sri Lanka Accounting Standard 44 - Financial Instruments: Presentation (SLAS 44)

Sri Lanka Accounting Standard 45 - Financial Instruments: Recognition and Measurement (SLAS 45)
Sri Lanka Accounting Standard 39 - Share Based Payments (SLAS 39)
The Group is currently in the process of evaluating the potential effect of these Standards. However, the impact of the
above requirements has not been quantified as at the reporting date.
3. Gross Turnover
For the year ended 2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Manufacturing and Fabrication 2,841,819,943 2,338,424,157 2,841,819,943 2,338,424,157

Export Sales 432,482,111 448,861,794 432,482,111 448,861,794
Trading 48,454,244 43,033,078 48,454,244 43,033,078
3,322,756,298 2,830,319,029 3,322,756,298 2,830,319,029
4. Other Income
Rs. Rs. Rs. Rs.
Gain on Disposal of Property,

Plant & Equipment 35,714 1,531,870 35,714 1,531,870
Sundry Income 3,876,148 4,306,709 3,876,148 4,306,709
3,911,862 5,838,579 3,911,862 5,838,579
5. Net Finance Cost

Rs. Rs. Rs. Rs.
Finance Income
Interest from Foreign Currency Deposits 7,305,350 7,505,111 7,305,350 7,505,111
Interest from Local Currency Deposits 84,706 896,002 84,706 896,002
Interest Income from Loans Granted to
Holding Company 4,541,154 7,348,518 4,541,154 7,348,518
11,931,210 15,749,631 11,931,210 15,749,631
Finance Costs
Loss on Translation of Foreign Currency (3,030,645) (12,407,962) (3,030,645) (12,407,962)
Bank Overdraft Interest (20,461,202) (26,421,810) (20,461,202) (26,421,810)
Interest on Bank Loans (10,733,228) (33,415,059) (10,733,228) (33,415,059)
Interest on Trade Bills (38,296) (532,113) (38,296) (532,113)
Interest on Distributor Deposit (755,417) (211,240) (755,417) (211,240)
(35,018,788) (72,988,184) (35,018,788) (72,988,184)
Net Finance Cost (23,087,578) (57,238,553) (23,087,578) (57,238,553)
6. Profit Before Tax
Profit before tax is stated after charging all expenses including the following:
Rs. Rs. Rs. Rs.
Directors Emoluments 7,111,667 6,246,666 7,111,667 6,246,666

Director Fees 1,240,000 1,220,000 1,240,000 1,220,000
Auditors Remuneration
Statutory Audit 527,720 469,530 527,720 469,530
Audit-Related Services 152,859 110,491 152,859 110,491
Depreciation on Property, Plant & Equipment 28,764,149 27,296,132 28,764,149 27,296,132
Provision for Investment in Subsidiary 80
Provision for Inventories 12,634,264 2,900,337 12,634,264 2,900,337
Provision for Bad & Doubtful Debts 20,728,256 7,056,384 20,728,256 7,056,384
Bad Debts Written-Off 6,138,681 6,138,681
Staff Costs (Note 6.1) 186,139,366 158,672,769 186,139,366 158,672,769
6.1 Staff Cost

Defined Contribution Plan Cost - EPF, ETF 14,470,154 12,360,920 14,470,154 12,360,920
Defined Benefit Plan Cost - Retiring Gratuity 5,577,438 7,609,167 5,577,438 7,609,167
Staff Cost Other than above 166,091,774 138,702,682 166,091,774 138,702,682
186,139,366 158,672,769 186,139,366 158,672,769
Number of Employees
The Number of Employees of Group and
the Company at the end of the Year was 364 376 364 376
7. Income Tax Expense

The charge for income tax expense is made up as follows:
Rs. Rs. Rs. Rs.
Current Tax Expense (Note 7.1) 140,286,903 45,197,886 140,286,903 45,197,886

Deferred Tax Expense (Note 24) (504,345) (5,105,353) (504,345) (5,105,353)
139,782,558 40,092,533 139,782,558 40,092,533
The provision for income tax is based on the element of income and expenditure reported in the Financial Statements
and computed in accordance with the provision of the Inland Revenue Act No. 10 of 2006.
Tax on Equity Accounted Investee

ACL-Kelani Magnet Wire (Private) Limited has entered into an agreement with the Board of Investment in Sri Lanka on
19th April 2001 and the Profit & Income of the Company is exempt for a period of 10 years commencing from the
year of assessment in which the 1st commercial exports is effected. ACL-Kelani Magnet Wire (Private) Limited will be
liable to tax at 15% for a period of 10 years immediately succeeding the last date of the said tax exemption period and
thereafter the Company will be liable at the normal income tax rate, which is presently 35%. on the taxable income.
Further, the Company will also be liable to Social Responsibility Levy @ 1.5% on income tax payable.
7.1 Reconciliation of Accounting Profit to Income Tax Expense
Rs. Rs. Rs. Rs.
Profit before Tax 279,460,350 135,060,786 301,911,338 133,179,006

Share of Equity Accounted Investee (Profit)/Loss 22,451,068 (1,881,780)
Less: Profit Exempt from Tax (7,305,350) (7,505,111) (7,305,350) (7,505,111)
294,606,068 125,673,895 294,605,988 125,673,895
Aggregate Disallowable Expenses 152,983,795 55,975,528 152,983,795 55,975,528

Aggregate Allowable Expenses (28,739,670) (25,546,486) (28,739,670) (25,546,486)
Income Not Liable for Tax (1,928,638) (25,359,264) (1,928,638) (25,359,264)
Total Statutory Income 426,173,275 130,743,673 426,173,195 130,743,673
Less: Deductions from Assessable Income (11,000) (11,000) (11,000) (11,000)
Taxable Income 426,162,275 130,732,673 426,162,195 130,732,673
Taxed @ 15% 8,231,487 3,110,692 8,231,487 3,110,692

Taxed @ 35% 129,949,994 41,383,001 129,949,994 41,383,001
138,181,481 44,493,693 138,181,481 44,493,693
Social Responsibility Levy 2,105,422 704,193 2,105,422 704,193
Income Tax on Current Year Profits 140,286,903 45,197,886 140,286,903 45,197,886
8. Earnings Per Share

Basic Earnings per Share
The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders and the weighted
average number of shares outstanding during the year.
Diluted Earnings per Share

The calculation of diluted earning per share is based on the profit attributable to ordinary shareholders and the
weighted average number of shares outstanding after adjustment for the effect of all dilutive potential ordinary shares.
There were no potentially dilutive ordinary shares outstanding at any time during the year/previous year.

Rs. Rs. Rs. Rs.
Profit Attributable to Ordinary Shareholders (Rs.) 139,677,792 94,968,253 162,128,780 93,086,473

Opening Weighted Average Number of
Ordinary Shares 21,800,000 10,900,000 21,800,000 10,900,000
Increase in Shares Outstanding as a result of
Share Split (Note 8.1) 10,900,000 10,900,000
Opening Weighted Average Number of
Ordinary Shares - Restated 21,800,000 21,800,000 21,800,000 21,800,000
Basic/Dilutive Earnings per Share (Rs.) 6.41 4.36 7.44 4.27
8.1 The shareholders of the Company resolved a share split of 1 share for every 1 share held at an Extraordinary Meeting
held on 19th February 2010. The share split increased the number of shares to 21,800,000 shares. Accordingly, to be in
line with Sri Lanka Accounting Standards 34 (Revised 2005) - Earnings Per Share, the calculation of basic earnings per share
for all periods presented have been adjusted retrospectively.
9. Dividend Per Share

Rs. Rs. Rs. Rs.
Interim dividend 21,800,000 21,800,000

Final dividend proposed 21,800,000 21,800,000
Gross dividend 21,800,000 21,800,000 21,800,000 21,800,000
Number of shares 21,800,000 21,800,000 21,800,000 21,800,000

Dividend per share 1.00 1.00 1.00 1.00
10. Property, Plant & Equipment

Company and Consolidated
Freehold Buildings Furniture, Business Motor Plant, Total Total
Land Fittings & Machines, Vehicles Machinery, 31.03.2010 31.03.2009
Office Systems & Electrical
Equipment Software Fittings
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Cost or Valuation
At the beginning
of the year 121,749,154 80,297,168 12,902,663 22,649,339 22,457,468 342,412,069 602,467,861 555,380,787
Additions 766,384 999,057 3,795,833 3,364,339 36,464,363 45,389,976 122,416,304
Surplus/(Deficit)
from revaluation (7,249,154) 23,404,585 16,155,431
Disposals (156,522) (156,522) (75,329,230)
At the end of the year 114,500,000 104,468,137 13,901,720 26,288,650 25,821,807 378,876,432 663,856,746 602,467,861
Accumulated
Depreciation
At the beginning
of the year 10,584,866 6,433,871 17,435,628 16,673,493 258,884,544 310,012,402 284,360,270
Charge for the year 5,383,271 1,027,036 2,882,767 2,685,665 16,785,410 28,764,149 27,296,132
Disposals (156,522) (156,522) (1,644,000)
At the end of the year 15,968,137 7,460,907 20,161,873 19,359,158 275,669,954 338,620,029 310,012,402
Net Book Value
As at 31st March 114,500,000 88,500,000 6,440,813 6,126,777 6,462,649 103,206,478 325,236,717 292,455,459
Capital Work-In-
Progress (Note 10.3) 15,056,923 38,736,446
Carrying Amount 340,293,640 331,191,905
The land and buildings at Kelaniya was assessed by an Independent Professional Valuer as at 2nd September 1994,
31st December 1997, 31st March 2007 and 31st March 2010 respectively and the resultant surplus credited to a
revaluation reserve account. Further, the land at Siyambalape was assessed as at 31st March 2007 and 31st March 2010
and the resultant surplus credited to a revaluation reserve account.
Land and Buildings written up are as follows:
Date of Revaluation Surplus/(Reduction)
2nd September 1994 33,084,965

31st December 1997 (3,657,726)
31st March 2007 100,923,954
31st March 2010 16,155,431
10.1 The carrying amount of the Land and Buildings if they were carried at cost is as follows:
Company and Consolidated
Land Buildings
Rs. Rs.
Cost
Balance as at 1st April 2009 53,298,505 33,594,356
Additions 766,384
Balance as at 31st March 2010 53,298,505 34,360,740
Accumulated Depreciation
Balance as at 1st April 2009 11,598,816
Charge for the year 1,346,329
Balance as at 31st March 2010 12,945,145
Carrying Amount as at 31st March 2010 53,298,505 21,415,595
10.2 The cost of fully depreciated assets as at the Balance Sheet date is as follows:
31.03.2010 31.03.2009
Rs. Rs.
Buildings
Furniture, Fittings & Office Equipment 3,289,909 3,143,685
Business Machines & Systems Software 14,724,973 12,882,927
Motor Vehicles 10,858,349 10,564,275
Plant Machinery & Electrical Fittings 205,038,428 192,209,130
233,911,659 218,800,017
10.3 Capital Work-In-Progress

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Balance as at the beginning of the year 38,736,446 19,303,803 38,736,446 19,303,803

Additions during the year 2,654,813 20,752,163 2,654,813 20,752,163
Transferred to Property, Plant & Equipment (26,334,336) (1,319,520) (26,334,336) (1,319,520)
Balance as at the end of the year 15,056,923 38,736,446 15,056,923 38,736,446
11. Investment Property
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.

Change in fair value 16,000,000 16,000,000
Investment property represents the land owned by the Company and situated at Ekala. The value was determined
on fair value basis using market evidence. A Valuation was carried out by an Independent Professional Valuer
Mr. H.W. Wimalasena, an Associate Member of Institute of Valuers of Sri Lanka, as at 31st March 2009 and the change
in fair value of investment property Rs. 16,000,000/- was credited to profit and loss. The fair value of investment
property as at 31st March 2009 is Rs. 120,000,000/-.
The Directors concluded the fair value as at the reporting date to be Rs. 120,000,000/-.
12. Investment in Subsidiary

Company
Company No. of 31.03.2010 31.03.2009
Holding Shares Rs. Rs.
Kelani Electrical Accessories (Private) Limited

Ordinary Shares 100% 8 80 80
Provision for Investment (80)
80
Legal Status - Private Limited Company incorporated in Sri Lanka in 1993.

Kelani Electrical Accessories (Pvt) Limited has ceased operations since September 1995. Accordingly, Directors resolved
to provide, for the aforesaid investment.
13. Investment in Equity Accounted Investee

Company
No. of 31.03.2010 31.03.2009
Holding Shares Rs. Rs.
ACL-Kelani Magnet Wire (Private) Limited

Ordinary Shares 29.99% 5,120,000 51,200,000 51,200,000
51,200,000 51,200,000
Legal Status - Private Limited Company incorporated in Sri Lanka in year 2000.
Principal operations of the Company are manufacture and export of all kinds and gauges of enamelled wires.
13.1 Group
Consolidated
2009/10 2008/09
Rs. Rs.
Investment in Equity Accounted Investee

(at Cost) 51,200,000 51,200,000
Goodwill on Acquisition (1,240,635) (1,240,635)
49,959,365 49,959,365
Group Share of Equity Accounted Investee Loss

Balance at the beginning of the year (17,996,757) (19,878,537)
Current Years Share of Profit/(Loss)
after Tax (22,451,068) 1,881,780
Balance at the end of the year (40,447,825) (17,996,757)
9,511,540 31,962,608
Unamortised Goodwill Carried Forward
[Note 13.1 (a)]
Group Investment in Equity Accounted
Investee (Equity Basis) 9,511,540 31,962,608
13.1 (a) Goodwill on Acquisition 1,240,635 1,240,635

Impairment of Goodwill (1,240,635) (1,240,635)

The Directors having considered the projected results of its equity accounted investee, resolved that no provision is required
for the investment in ACL-Kelani Magnet Wire (Private) Limited in the Financial Statements of the Parent Company.
14. Inventories
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Raw Materials 148,468,316 54,430,226 148,468,316 54,430,226

Work-in-Progress 241,865,017 84,323,166 241,865,017 84,323,166
Finished Goods 394,238,410 274,557,753 394,238,410 274,557,753
Consumable Stocks 50,497,281 32,147,269 50,497,281 32,147,269
835,069,024 445,458,414 835,069,024 445,458,414
Provision for Inventories (Note 14.1) (30,433,232) (25,810,372) (30,433,232) (25,810,372)
804,635,792 419,648,042 804,635,792 419,648,042
Goods in Transit 145,735,952 38,352,202 145,735,952 38,352,202
950,371,744 458,000,244 950,371,744 458,000,244
14.1 Provision for Inventories

Provision for the year 12,634,264 2,900,337 12,634,264 2,900,337
Inventory Written-Off (8,011,404) (1,507,598) (8,011,404) (1,507,598)
15. Trade and Other Receivables
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Trade Receivables 816,407,153 704,306,412 816,407,153 704,306,412

Trade Receivables - Related Parties
ACL Cables PLC 7,308,241 1,293,825 7,308,241 1,293,825
ACL Plastics PLC 132,921 83,000 132,921 83,000
ACL Metals & Alloys (Private) Limited 124,000 124,000 124,000 124,000
Less: Provision for Bad & Doubtful Debts
(Note 15.1) (44,531,310) (23,803,054) (44,531,310) (23,803,054)
779,441,005 682,004,183 779,441,005 682,004,183
Staff Loans 2,190,219 2,462,911 2,190,219 2,462,911
Duty rebate receivable 1,931,740 17,628,660 1,931,740 17,628,660
Other receivables 12,152,143 2,713,301 12,152,143 2,713,301
795,715,107 704,809,055 795,715,107 704,809,055
15.1 Provision for Bad & Doubtful Debts

Provision for the year 20,728,256 7,056,384 20,728,256 7,056,384
Debts Written-Off (54,092) (54,092)
16. Amount Due from Related Companies

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
ACL Cables PLC

Loan 41,854,000 41,854,000 41,854,000 41,854,000
Other transactions 205,789 3,111,370 205,789 3,111,370
42,059,789 44,965,370 42,059,789 44,965,370
Interest on the loan is calculated at Treasury Bill rate on quarterly basis. The loan is not secured and recovery of the loan
has been extended for a further one year.
17. Cash and Cash Equivalents

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.

Cash in Hand and at Bank 6,967,300 2,750,452 6,967,300 2,750,452
190,760,167 175,751,308 190,760,167 175,751,308
Less:
Short-Term Loans (224,000,000) (23,424,549) (224,000,000) (23,424,549)
Bank Overdraft (191,830,002) (173,921,889) (191,830,002) (173,921,889)
(415,830,002) (197,346,438) (415,830,002) (197,346,438)
Cash and Cash Equivalents as per
Cash Flow Statement (225,069,835) (21,595,130) (225,069,835) (21,595,130)
18. Stated Capital
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Issued and Fully paid

21,800,000 Ordinary Shares
(31st March 2009 - 10,900,000) 218,000,000 218,000,000 218,000,000 218,000,000
218,000,000 218,000,000 218,000,000 218,000,000
18.1 Rights, Preferences and Restrictions of Classes of Capital

The holders of Ordinary Share are entitled to receive dividends as declared from time to time and are entitled to
one vote per share at meetings of the Company. All shares rank equally with regard to the Companys residual assets.
18.2 The shareholders of the Company resolved a share split of 1 share for every 1 share held at an Extraordinary
General Meeting held on 19th February 2010. The share split has increased the number of shares to 21,800,000 shares.
19. Capital Reserves

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Revaluation Reserve (Note 19.1) 121,451,514 113,487,688 121,451,514 113,487,688

Capital Redemption Reserve Fund (Note 19.2) 525,000 525,000 525,000 525,000
121,976,514 114,012,688 121,976,514 114,012,688
19.1 Revaluation Reserves

Revaluation Reserve relates to the resultant surplus on revaluation of land and buildings of the Company.
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.

Surplus on revaluation of Land & Buildings 16,155,431 16,155,431
Deferred Tax Effect on Revaluation (8,191,605) (8,191,605)
19.2 Capital Redemption Reserve Fund

Capital Redemption Reserve Fund was created consequent to redemption of preference shares.
20. General Reserves
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Development Reserve 7,143,905 7,143,905 7,143,905 7,143,905

Dividend Equalisation Reserve 1,000,000 1,000,000 1,000,000 1,000,000
Revenue Reserve (Note 20.1) 422,992,095 422,992,095 422,992,095 422,992,095
431,136,000 431,136,000 431,136,000 431,136,000
Development Reserve
The development reserve reflects the amount the Company has reserved for future developments expenditure.
Dividend Equalisation Reserve

Dividend Equalisation Reserve was created in the year 1981/82.
20.1 Revenue Reserve

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Balance Brought Forward 422,992,095 422,992,095 422,992,095 422,992,095

Transferred from Income Statement
Balance Carried Forward 422,992,095 422,992,095 422,992,095 422,992,095
The Revenue Reserve reflects the amount that the Company has reserved over the years from its retained earnings.
21. Retained Earnings

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Company 788,297,948 669,769,168 788,297,948 669,769,168

Subsidiary (80)
Equity Accounted Investee
Share of Loss up to 31st March 2010 (40,447,825) (17,996,757)
Amortisation of Goodwill (1,240,635) (1,240,635)
746,609,488 650,531,696 788,297,948 669,769,168
22. Retirement Benefit Obligations
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Provision for Retiring Gratuity

adoption of SLAS 16 (Revised 2006)
(Note 22.1) (2,618,060) (2,618,060)
Revised Balance at the beginning of the year 27,496,735 23,709,777 27,496,735 23,709,777
Current Service Cost 1,824,345 2,488,911 1,824,345 2,488,911

Interest Cost 2,085,481 2,845,173 2,085,481 2,845,173
Actuarial (Gain)/Loss 1,667,611 2,275,083 1,667,611 2,275,083
Payments made (Including Benefits Paid)
during the year (1,216,276) (3,822,209) (1,216,276) (3,822,209)
Total present value of the obligation 31,857,897 27,496,735 31,857,897 27,496,735
The expense is recognised in the following

line items in the Income Statement
Cost of sales 2,614,212 3,233,591 2,614,212 3,233,591
Distribution Expenses 1,856,169 2,473,570 1,856,169 2,473,570
Administrative expenses 1,107,057 1,902,006 1,107,057 1,902,006
5,577,438 7,609,167 5,577,438 7,609,167
SLAS 16 (Revised 2006) requires the use of actuarial techniques to make a reliable estimate of the amount of retirement
benefit that employees have earned in return for their service in the current and prior periods and discount that benefit
using the Projected Unit Credit Method in order to determine the present value of the retirement benefit obligation and
the current service cost. This requires an entity to determine how much benefit is attributable to the current and prior
periods and to make estimates about demographic variables and financial variables that will influence the cost of the
benefit. The following assumptions were made in arriving at the above figure.
Principal actuarial assumptions used

% per annum
(a) Rate of Discount 11

(b) Incidence of Withdrawal 2
(c) Salary Increase 10
Assumptions regarding future mortality are based on a 67/70 mortality table, issued by the Institute of Acturies, London.
The demographic assumptions underlying the valuation are with respect to retirement age, early withdrawal from
service and retirement on medical grounds.
22.1 First time adoption of SLAS 16 (Revised) - Retirement Benefit Obligation
Effect on
Retained Earnings
1st April 2008
Rs.
Decrease in Retirement Benefit Obligation [Note 22.1 (a)] 2,618,060

Increase in Deferred Tax Liability [Note 22.1 (b)] (916,321)
1,701,739
22.1 a The Company could not carry out an actuarial valuation of retirement benefit obligations for periods prior to
31st March 2008. Therefore, the Company was unable to apply the change in accounting policy retrospectively for the
earliest period presented which is 1st April 2007. Due to the limitation of the retrospective application, the Company
determined the effect of change in accounting policy and accordingly applied the change to the opening balance of the
retained earnings as at 1st April 2008.
22.1 b Deferred tax effect arising on reversal of net provision for retirement benefit obligation due to change in
accounting policy amounting to Rs. 916,321/- has been directly charged to the opening balance of the retained earnings.
23. Provision for Payment in Lieu of Employee Share Issue Scheme

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.

Payment made during the year (178,511) (393,283) (178,511) (393,283)
In view of the smooth transfer of ownership from Pacific Dunlop Cables Group to ACL Group, the management
expressed their goodwill to employees by allocating a fixed sum as compensation for the share ownership scheme which
was proposed earlier. The employees who were in employment as at 11th September 1999 are eligible for the payment
which will be made at the time of resignation or retirement.
24. Deferred Tax Liability

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.

Effect of Change Due to the Adoption of
SLAS 16 (Revised 2006) - (Note 22.1) 916,321 916,321
Revised Balance at the beginning of the year 17,052,424 22,157,777 17,052,424 22,157,777
Origination/(Reversal) of Temporary Differences (504,345) (5,105,353) (504,345) (5,105,353)
Tax Effect on Surplus on Revaluation of
Property, Plant & Equipment
recognised in equity 8,191,605 8,191,605
24.1 Analysis of Deferred Tax Liability - Company & Consolidated
2009/10 2008/09
Temporary Tax Temporary Tax
Difference Difference
Rs. Rs. Rs. Rs.
Property, Plant & Equipment 33,877,049 11,856,967 31,135,384 10,897,384

Defined Benefit Obligation (31,857,898) (11,150,264) (27,496,735) (9,623,857)
Employee Share Issue Scheme (2,920,369) (1,022,129) (3,098,880) (1,084,608)
Revaluation of Property, Plant & Equipment 71,586,028 25,055,110 48,181,443 16,863,505
70,684,810 24,739,684 48,721,212 17,052,424
25. Trade Payables

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Trade Payables 290,994,269 114,927,209 290,994,269 114,927,209

Trade Payables - Related Parties
ACL Cables PLC 27,266,186 18,213,332 27,266,186 18,213,332
ACL Plastics PLC 60,452,539 42,045,249 60,452,539 42,045,249
ACL Metals & Alloys (Private) Limited 2,548,511 2,548,511
378,712,994 177,734,301 378,712,994 177,734,301
26. Other Payables

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Accrued Charges 31,806,303 18,876,168 31,806,303 18,876,168

Sales Taxes Payable 223,334 68,263 223,334 68,263
Distributors' Deposits 9,915,224 3,036,808 9,915,224 3,036,808
Advance from Debtors 6,337,653 16,551,133 6,337,653 16,551,133
ESC Payable 6,402,415 14,083,392 6,402,415 14,083,392
Others 2,275,399 6,203,974 2,275,399 6,203,974
56,960,328 58,819,738 56,960,328 58,819,738
27. Income Tax Payable

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.

Income tax provision on current years profits 140,286,903 45,197,886 140,286,903 45,197,886
209,425,108 109,657,084 209,425,108 109,657,084
Economic Service Charge Paid (25,034,721) (25,298,120) (25,034,721) (25,298,120)
Payments made during the year (18,161,232) (15,220,759) (18,161,232) (15,220,759)
28. Dividend Payable
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.

Dividend declared 43,600,000 24,525,000 43,600,000 24,525,000
Payments during the year (42,563,314) (24,242,529) (42,563,314) (24,242,529)
29. Interest-Bearing Loans and Borrowings

2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Short-Term Loans 224,000,000 23,424,549 224,000,000 23,424,549

Bank Overdraft 191,830,002 173,921,889 191,830,002 173,921,889
415,830,002 197,346,438 415,830,002 197,346,438
Value of inventories and book debts have been pledged as security for overdraft facility obtained from bank amounted
to Rs. 39.5 Mn.
30. Related Party Transactions

(A) Parent and Ultimate Controlling Party
The Parent Company is Lanka Olex Cables (Private) Limited and the ultimate holding company is ACL Cables PLC.
(B) Transactions with Key Management Personnel

(i) Loans to Directors
No loans have been given to the Directors of the Company.
(ii) Key Management Personnel Compensation

Key Management Personnel comprise the Directors of the Company.
Compensation for Key Management Personnel amounts to Rs. 8,351,667/- (2009 - Rs. 7,466,666/-).
(iii) Other Transactions With Key Management Personnel

Details of Directors and their spouses share holdings are given in Report of the Directors on the Affairs of the Company
on page 36.
There were no other transactions with Key Management Personnel other than those disclosed below:
Value of Balance due From/(to)

Company Relationship Nature of Transaction Transactions as at 31st March
During the Year 2010 2009
Rs. Rs. Rs.
ACL Cables PLC Ultimate Parent Loan Given 41,854,000 41,854,000

Company
Interest Receivable on
above Loan 4,541,154 1,014,957 1,813,326
Interest Received in Cash (5,339,523)
Sale of Goods (Gross) 20,002,401 7,308,274 1,293,825
Settlement during the year (13,987,952)
50,177,231 44,961,151
Purchase of Finished
Goods (Gross) (55,977,984) (27,266,186) (12,368,691)
Settlement during the year 41,080,489
Other Transactions (3,737,398) (809,168) (4,546,599)
(28,075,354) (16,915,290)
ACL Plastics PLC Related Company Purchase of Raw

Materials (Gross) (306,134,614) (60,452,539) (42,045,249)
Sale of Sundry Items 109,264 132,921 83,000
Cash Received (59,344)
ACL-Kelani Magnet Equity Accounted

Wire (Private) Limited Investee Sale of Raw Materials (13,341,410)
Cash Received 13,341,410
Lanka Olex Cables Immediate Parent Dividend Payments

(Private) Limited Company 2008/09 & 2009/10 32,698,696
ACL Metals & Alloys Purchase of Raw Materials

(Private) Limited Related Company (Gross) (15,129,360) (2,548,511)
Sale of Sundry Items 124,000 124,000
31. Capital Commitments

There were no material capital commitment as at 31st March 2010.
32. Contingent Liability

The contingent liability as at 31st March 2010 on guarantees given to third parties amounted to Rs. 118,512,406/-.
33. Events After the Balance Sheet Date

There are no other events that have occurred after the Balance Sheet date which would require adjustments to,
or disclosure in the Financial Statements.
34. Principal Activities

The principal activities of the Company are manufacture of Power and Telecommunication Cables and Enamelled Winding Wires.
Statement of Value Addition
Group Company
2009/10 2008/09 2009/10 2008/09
Rs. Rs. Rs. Rs.
Turnover 3,322,213,610 2,829,831,582 3,322,213,610 2,829,831,582

Other Income 3,911,862 21,588,210 3,911,862 21,588,210
3,326,125,472 2,851,419,792 3,326,125,472 2,851,419,792
Less:
Cost of Material &
Services Purchased 2,509,651,159 2,344,381,893 2,487,200,172 2,346,263,673
Value Added 816,474,312 507,037,899 838,925,300 505,156,119

Value Addition as
Percentage on Turnover (%) 24.6 17.9 25.3 17.9
Distribution as follows
2009/10 As a % 2008/09 As a % 2009/10 As a % 2008/09 As a %
Rs. of Total Rs. of Total Rs. of Total Rs. of Total
To Employees as Remuneration 193,251,033 23.7 164,919,435 32.5 193,251,033 23.0 164,919,435 32.6
To Shareholders as Dividends 43,600,000 5.3 24,525,000 4.8 43,600,000 5.2 24,525,000 4.9
To the State as Taxes 419,762,550 51.4 146,865,896 29.0 419,762,550 50.0 146,865,896 29.1
To Bank as Interest 35,018,788 4.3 72,988,184 14.4 35,018,788 4.2 72,988,184 14.4
Retained in the Business
- As Depreciation 28,764,149 3.5 27,296,132 5.4 28,764,149 3.4 27,296,132 5.4
- As Revenue Reserves 96,077,792 11.8 70,443,252 13.9 118,528,780 14.1 68,561,473 13.6
816,474,312 507,037,899 838,925,380 505,156,120

Investor Information
Distribution of Shareholding - 31st March 2010

Range No. of Holders Total Holding % Holding
up to 1,000 682 235,548 1.1

1,001 - 5,000 277 697,010 3.2
5,001 - 10,000 60 483,084 2.2
10,001 - 50,000 77 1,549,054 7.1
50,001 - 100,000 6 386,100 1.8
100,001 - 500,000 5 1,166,100 5.3
500,001 1,000,000 1 933,756 4.3
over 1,000,000 1 16,349,348 75.0
1109 21,800,000
Twenty Largest Shareholders as at 31st March

2010 2009
No. of Shares % Holding No. of Shares % Holding
1. Lanka Olex Cables (Private) Limited 16,349,348 75.0 8,174,674 75.0

2. ACL Cables PLC 933,756 4.3 466,878 4.3
3. Deutsche Bank AG - National Equity Fund 400,000 1.8 102,300 0.9
4. Bank of Ceylon - No. 2 A/c 323,800 1.5 0.0
5. Employees Trust Fund Board 211,000 1.0 72,500 0.6
6. Waldock Mackenzie Limited/Ceylinco Shriram
Capital Management 127,800 0.6 63,900 0.6
7. Thaha I.M. 103,500 0.5 51,750 0.5
8. Aloysius K. 79,600 0.4 39,800 0.4
9. Deutsche Bank AG - Namal Amana Equity Fund 70,000 0.3 0.0
10. Deutsche Bank AG - Namal Growth Fund 65,000 0.3 70,000 0.6
11. Goonesekera C.D.M. (Mrs.) 62,500 0.3 31,250 0.3
12. Continental Insurance Lanka Limited 56,000 0.3 0.0
13. Senthilverl T. 53,000 0.2 0.0
14. Eheliyagoda R.P.L. 46,200 0.2 0.0
15. Investment Link (Private) Limited 42,600 0.2 21,300 0.2
16. Vignarajah K.C. 42,420 0.2 34,100 0.3
17. Kannangara N.L. 40,000 0.2 27,000 0.2
18. Waas M.J.T. 36,700 0.2 18,750 0.2
19. Sumathipala U.W.J.P.A. 35,200 0.2 17,600 0.2
20. Leonard D.S. 32,500 0.1 16,250 0.1

2009/10 2008/09
Market Value Per Share

At the Year End 114.50 49.75
Highest Value during the year 230.00 104.75
Lowest Value during the year 50.00 49.25
Earnings per Share (EPS) - Rs. 6.41 4.36
Net Assets per Share 69.62 64.85
Dividend per Share (DPS) - Rs. 2.00 2.00
Dividend Yield 0.02 0.04
Price Earnings Ratio 17.87 11.42
No. of Transactions 1301 577
No. of Shares Traded 919,200 373,900
Total Turnover (Rs.) 144,720,675 28,730,550
Market Capitalisation (Rs.) 2,496,100,000 542,275,000
Percentage of shares held by the public (%) 20.6 20.6
Investor Information | Kelani Cables PLC | Annual Report 2009/10 71

Decade at a Glance
Trading Results
Year ended 31st March 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000
Turnover 3,322,214 2,829,832 3,126,017 2,833,139 1,756,089 1,179,997 738,078 535,744 524,289 478,894
Gross Profit 695,429 468,715 514,636 671,156 356,764 246,621 128,558 83,650 78,928 86,990
Earnings before
Interest & Tax 314,479 208,049 251,759 469,800 247,482 166,140 55,921 46,701 106,075 89,848
Finance Cost (35,019) (72,988) (63,040) (14,944) (328) (2,357) (7,391) (11,170) (3,553) (2,776)
Profit before Tax 279,460 135,061 188,719 454,856 247,154 163,784 48,530 35,531 102,521 87,072
Taxation (139,783) (40,093) (68,034) (153,282) (67,570) (50,830) (12,693) (3,850) (22,302) (8,771)
Profit after Taxation 139,678 94,968 120,685 301,574 179,584 112,954 35,836 31,682 80,220 78,301
Balance Sheet
As at 31st March 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000
Share Capital 218,000 218,000 218,000 218,000 109,000 54,500 54,500 54,500 54,500 54,500
Capital Reserves 121,977 114,013 114,013 114,013 138,952 193,452 193,452 193,452 193,452 193,452
Revenue Reserves 431,136 431,136 431,136 432,000 432,000 332,000 282,008 247,008 212,008 137,008
Retained Earnings 746,609 650,532 578,387 528,552 211,238 148,005 87,983 101,019 104,338 112,743
1,517,722 1,413,680 1,341,536 1,292,564 891,190 727,957 617,943 595,979 564,298 497,703
Property, Plant & Equipment 340,294 331,192 290,324 290,833 198,361 179,688 184,850 203,455 221,220 233,464
Investments 9,512 31,963 30,081 39,674 50,108 41,150 35,875 42,500 2,500 2,500
Investment Property 120,000 120,000 104,000 104,000
Current Assets 2,129,865 1,484,874 1,948,602 1,570,989 1,319,551 908,985 659,813 569,713 559,505 449,535
Current Liabilities (1,022,431) (506,700) (979,546) (658,359) (639,297) (359,894) (221,738) (180,267) (177,128) (145,399)
Long-Term Provisions (59,518) (47,648) (51,925) (54,573) (37,533) (41,972) (40,857) (39,422) (41,799) (42,397)
1,517,722 1,413,680 1,341,536 1,292,564 891,190 727,957 617,943 595,979 564,298 497,703
Ratios
Gross Margin (%) 20.9 16.6 16.5 23.7 20.3 20.9 17.4 15.6 15.1 18.2
Net Margin (%) 4.2 3.4 3.9 10.6 10.2 9.6 4.9 5.9 15.3 16.4
Return of Investment (ROI) (%) 20.7 14.7 18.8 36.3 27.8 22.8 9.0 7.8 18.8 18.1
Return of Average Equity (%) 9.5 6.9 9.2 27.6 22.2 16.8 5.9 5.5 15.1 16.8
Assets Turnover 2.2 2.0 2.3 2.2 2.0 1.6 1.2 0.9 0.9 1.0
Working Capital Turnover 3.0 2.9 3.2 3.1 2.6 2.1 1.7 1.4 1.4 1.6
Current Ratio 2.1 2.9 2.0 2.4 2.1 2.5 3.0 3.2 3.2 3.1
Total Debts to Equity 0.27 0.14 0.32 0.16 0.03 0.01 0.13 0.17 0.14 0.05
Net Assets per Share
(re-stated) 69.62 64.85 61.54 59.29 40.88 33.39 28.35 27.34 25.89 22.83
Dividend per Share
(DPS) - Rs. 2.00 2.00 2.25 6.50 3.00 3.00 3.00 2.50 2.50 2.50
Earnings per Share
(EPS) - Rs. 6.41 4.36 5.54 13.83 8.24 5.18 1.64 1.45 3.68 3.59
Market Price per
Share - End Rs. 114.50 49.75 95.25 177.00 80.00 129.00 36.00 38.50 40.00 24.00
Dividend Yield (%) 0.02 0.04 0.02 0.04 3.75 2.33 8.33 6.49 6.25 10.42
Price Earnings Ratio 17.87 11.42 17.21 12.79 9.71 24.90 21.90 26.49 10.87 6.68

Decade at a Glance | Kelani Cables PLC | Annual Report 2009/10 73
Glossary of Financial Terms
Capital Employed Net Assets

Shareholders funds plus minority interest and debt. Total assets minus current liabilities minus long-term
liabilities minus minority interests.
Cash Equivalents
Liquid investments with original maturity periods of three Net Assets per Share
months or less. Net assets over number of ordinary shares in issue.

Current Ratio Net Margin
Current assets divided by current liabilities. Profit after tax divided by turnover.

Deferred Taxation Price Earnings Ratio
The tax effect of timing differences deferred to/from Market price of a share divided by earnings per share as
other periods, which would only qualify for inclusion on a reported at that date.
tax return at a future date.
Quick Ratio
Dividend Yield Cash plus short-term investments plus receivables, divided
Effective dividend per share as percentage of the share by current liabilities.
price at the end of the period.
Related Parties
Dividend per Share
Parties who could control or significantly influence the
Gross dividend divided by the number of ordinary shares financial and operating policies of the business.
in issue at the year end.
Return on Equity
Earnings per Share
Profit attributable to shareholders as a percentage of
Profit attributed to shareholders divided by the
average shareholders funds.
weighted average number of ordinary shares in

issue during the period.
Revenue Reserves

Reserves considered as being available for distributions
EBIT
and investment.
Earnings before Interest, Tax (including operating income).

Value Addition
Equity Accounted Investee
A company other than a subsidiary in which a holding The quantum of wealth generated by the activities of the
company has a participating interest and exercises Group measured as the difference between net revenue
significant influence over its operating and financial policies. (including other Income) and the cost of materials and
services bought in.
Market Capitalisation
Number of shares in issue multiplied by the market value Working Capital
of a share at the reported date. Capital required to finance day-to-day operations computed
as the excess of current assets over current liabilities.

Notice of Meeting
NOTICE IS HEREBY GIVEN that the Forty-First Annual General Meeting of Kelani Cables PLC will be held at the Main
Auditorium of the Association of Accounting Technicians of Sri Lanka, 540, Thimbirigasyaya Road, Narahenpita on
Wednesday the 28th of July 2010, at 9.30 a.m. for the following purposes.
1. To receive and adopt the Report of the Directors and the Statement of Accounts for the year ended 31st March 2010
with the Report of the Auditors thereon.
2. (a) To re-elect as Director, Mrs. N.C. Madanayake who retires by rotation in terms of Article 85 and being eligible for
re-election in terms of Article 86, respectively of the Articles of Association of the Company.
(b) To re-elect as Director, Dr. Ranjith Cabral, who retires by rotation in terms of Article 85 and being eligible for
re-election in terms of Article 86, respectively of the Articles of Association of the Company.
3. To reappoint Messrs KPMG Ford, Rhodes, Thornton & Co., as Auditors of the Company and to authorise the
Directors to determine their remuneration.
4. To consider and if thought fit to pass the following Ordinary Resolution of which special notice has been given by a
Shareholder of the Company.
that Mr. U.G. Madanayake, who has passed the age of 70 years in May 2006 be and is hereby appointed a Director
of the Company and that the age limit of 70 years referred to in Sections 210 and 211 of the Companies Act No. 07
of 2007, shall not apply to him.
5. To authorise the Directors to determine donations to charities.

Company Secretaries
22nd June 2010
Note:
(a) A Shareholder is entitled to appoint a Proxy to attend and vote in his stead and a Form of Proxy is attached to this Report
for that purpose. A Proxy need not be a shareholder of the Company.
(b) Shareholders are kindly requested to bring duly perfected and signed Attendance Slip along with them when attending
the Meeting and handover for registration.

Notes

Proxy Form
I/we .............................................................................................................................................................................................
of .................................................................................................................................................................................................
being a Shareholder/Shareholders of Kelani Cables PLC hereby appoint Mr. .................................................................................
.............................................. of ................................................................................................................................... or failing
him Mr .............................................................................. or failing him Mr. ..............................................................................
................................................................................. of ...............................................................................................................
as my/our Proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be held on
Wednesday, the 28th day of July 2010, at the Main Auditorium of The Association of Accounting Technicians of Sri Lanka,
540, Thimbirigasyaya Road, Narahenpita at 09.30 a.m. and at any adjournment thereof.
For Against
1. To receive and adopt the Report of the Directors and the Statement of Accounts
for the year ended 31st March 2010 with the Report of the Auditors thereon.
2. a. To re-elect as Director, Mrs. N.C. Madanayake who retires by rotation.
b. To re-elect as Director, Dr. Ranjith Cabral who retires by rotation.
3. To reappoint Messrs KPMG Ford, Rhodes, Thornton & Co., as Auditors

of the Company and to authorise the Directors to determine their remuneration.
4. To reappoint Mr. U.G. Madanayake as a Director of the Company in terms of

Sections 210 and 211 of the Companies Act No. 7 of 2007.
5. To authorise the Directors to determine donations to charities.
Signed this .................... day of .................... 2010.
...........................................
Signature
INSTRUCTIONS FOR COMPLETION
1. The instrument appointing a Proxy shall in the case of an individual be signed by the appointer or by his Attorney and in the case
of a Corporation be either under its common seal or signed by its Attorney or by an Officer on behalf of the Corporation.
2. A Proxy need not be a Shareholder of the Company.
3. The full name and address of the Proxy and the Shareholder appointing the Proxy should be entered legibly in the Form of Proxy.
4. The completed Form of Proxy should be deposited at No. 21, Norris Canal Road, Colombo 10, not less than 48 hours before the scheduled
time of the Meeting.
Kelani Cables PLC

Attendance Slip - Annual General Meeting
I/We hereby record my/our presence at the 41st Annual General Meeting of KELANI CABLES PLC. REF. No: ...................
1. Name of Shareholder : .......................................................................................................................................................
Name of Proxy : .......................................................................................................................................................

(If applicable)
2. NIC Number of Shareholder : .....................................................................................................................................................
NIC Number of Proxy : .....................................................................................................................................................

(If applicable)
3. Signature of Shareholder : .....................................................................................................................................................
Signature of Proxy : .....................................................................................................................................................

Corporate Information
Name of the Company
Kelani Cables PLC
Legal Form
Quoted Public Company with Limited Liability
Date of Incorporation
Incorporated as Ceylon Non-Ferrous Metal Industries Limited
on 27th January 1969. Thereafter on 18th December 1973
the name was changed to Kelani Cables Limited.
With the adoption of the Companies Act No. 7 of 2007,

re-registered as Kelani Cables PLC in February 2008.
Company Registration Number

PQ 117
Registered Office
No.21, Norris Canal Road, Colombo 10.
Principle place of Business

P.O. Box 14, Wewelduwa, Kelaniya
Website
www.kelanicables.com
Auditors
KPMG Ford, Rhodes, Thornton & Co.,
Chartered Accountants
32A, Sir Mohamed Macan Markar Mawatha
P.O. Box 186
Colombo 3
Board of Directors
Mr. U.G. Madanayake
Mr. Suren Madanayake
Mr. Hemantha Prerera
Mrs. N. C. Madanayake
Dr. Bandula Perera
Dr. Ranjith Cabral
Company Secretaries
Bankers
Hatton National Bank PLC
Hongkong and Shanghai Banking
Corporation Limited
Peoples Bank
Union Bank of Colombo Limited
Standard Chartered Bank
Telephone
94-11-2911224, 94-11-5399600
E-mail
info@kelanicables.com
A VisageSpice Annual Report

www.kelanicables.com

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Kelani Cables PLC | Annual Report 2009/10

2 Kelani Cables PLC | Annual Report 2009/10

Turnover (Rs. Mn) 3,322 2,830

Net Assets (Rs. Mn) 1,518 1,413

2 Kelani Cables PLC | Annual Report 2009/10

The expansion of infrastructure development activities, laid

Kelani Cables PLC | Annual Report 2009/10 3

4 Kelani Cables PLC | Annual Report 2009/10 | Chairmans Review

Your Company continues its strong position as a leading

Kelani Cables PLC | Annual Report 2009/10 5

6 Kelani Cables PLC | Annual Report 2009/10 | Managing Directors Review

Managing Directors Review | Kelani Cables PLC | Annual Report 2009/10 7

8 Kelani Cables PLC | Annual Report 2009/10 | Managing Directors Review

Mr. Upali Madanayake - Chairman

He has over forty years of experience in the cable industry.

Mr. Suren Madanayake - Deputy Chairman

Mr. Hemantha Perera - Managing Director

Kelani Cables PLC | Annual Report 2009/10 9

Dr. Bandula Perera - Director

He was appointed to the Board of Kelani Cables PLC in March 2008.

Dr. Ranjith Cabral - Director

He was appointed to the Board of Kelani Cables PLC in March 2008.

10 Kelani Cables PLC | Annual Report 2009/10 | Board of Directors

Christian Knower - General Manager

Hemamala Karunasekara - Finance Manager

Anil Munasinghe - Marketing Manager

Nandana Okandapola - Manager Human Resources

Upul Mahanama - Operations Manager

Kelani Cables PLC | Annual Report 2009/10 11

From a Company perspective, we grew Turnover, Net Profits

From a National perspective, a 30 year war came to a close

It was a year in which Kelani Cables increased momentum

However, one of the most significant achievements the

This is a real area of strength and one which we cherish and

Kelani Cables PLC | Annual Report 2009/10 13

14 Kelani Cables PLC | Annual Report 2009/10

Operational Review | Kelani Cables PLC | Annual Report 2009/10 15

16 Kelani Cables PLC | Annual Report 2009/10 | Operational Review

Operational Review | Kelani Cables PLC | Annual Report 2009/10 17

Kelani Lead Free

18 Kelani Cables PLC | Annual Report 2009/10

Armoured and Unarmoured Power Cables

Kelani Cables PLC | Annual Report 2009/10 19

20 Kelani Cables PLC | Annual Report 2009/10

Corporate Social Responsibility | Kelani Cables PLC | Annual Report 2009/10 21

Training for electricians

22 Kelani Cables PLC | Annual Report 2009/10 | Corporate Social Responsibility

Annual Employees Day

Kelani Cables PLC | Annual Report 2009/10 23

Efficiency Through Technology

Performance Management and Productivity Focus

Annual Christmas Party

24 Kelani Cables PLC | Annual Report 2009/10 | Human Resources

Balancing Work Life

Reinforcing Employee Relations

Human Resources | Kelani Cables PLC | Annual Report 2009/10 25

Risk Market Risk

Reduce dependency on one segment by balancing the focus to

Ensure prevailing quality standards are met and strengthen the

Risk Operational Risk

Seek continuous improvement of processes through process

Risk Credit Risk

26 Kelani Cables PLC | Annual Report 2009/10