Samson Group

Samson international PLC Annual Report 2019/20
i
CONTENTS
Page Page
1. Every dark cloud has a silver lining 01 Capital Management Reports

2. About this Report 02 20. Financial Capital 64
3. About us 04 21. Manufactured Capital 71
22. Human Capital 77
Synopsis and Highlights 23. Social Relationship Capital 92
4. Financial and Operational Highlights 05 24. Natural Capital 99
5. Corporate Information 07 25. Intellectual Capital 102
6. Corporate Milestones 09
7. Monthly Operational Highlights – 2018 / 19 12 Governance and Stewardship
8. Awards Won 13 26. Corporate Governance 105
9. Our Products 16 27. Risk Management 128
28. Audit Committee Report 139
Reviews 29. Report of the Remuneration Committee 141
10. Chairman’s Review in English 24 30. Report of the Related Party Transactions Review Committee 142
11. Chairman ‘s Review in Sinhala 26 31. Statement of Directors’ Responsibility 144
12. Managing Director’s Operational Review 27 32. Report of the Board of Directors 145
Management Profile Financial Reports

13. Profiles of the Directors 30 33. Independent Auditor’s Report 151
14. Profile of the Executive Management 35 34. Financial Statement 154
Management Discussion and Analysis Supplementary Information

15. Review of the External Environment 43 35. Country Profile 188
16. Overview of the Rubber Industry 48 36. Four-Quarter Financial Summary 190
17. Review of Operating Environment 53 37. Ten- year Economic Summary 191
18. Value Creation and Stakeholder Engagement 56 38. Ten- year Financial Summary 192
19. Goals and Strategies 60 39. Foreign Currency Financial Statements 193
40. Global Reporting Initiative 194
41. Glossary of Financial Terms 202
Investor Information
42. Investor Information 203
43. Notice of Meeting 208
44. Form of Proxy
“Every dark cloud has a silver lining”
During the pre-Corona period in the financial year, we did fairly well in the every sphere of
the business. We received the Gold award from the National Chamber of Exporters for
the fifth consecutive year and another Gold award at the Annual Reports competition. In
addition to that, we received many other awards in quality, environment, productivity and
human resource.
However, during the Corona period, the trading activities of the Company was severely
affected as others. Our exports and local sales declined significantly until end of the first
quarter in 2020/21. During this period, our employees dedicated significantly to protect
the Company by working even during the curfew period.
At present, we are working hard to obtain more and more buyers due to the change in the
market structure. Previously, we had lost many orders due to low-quality products available
from China in every market. Now, there are many opportunities for us to exploit them
based on our competitive advantage on quality of the products and the service level. We
further determined to run at a profit in our PVC segment in the coming year. We strongly
believe that every cloud has a silver lining and produce results even greater than in the
past.
We also aspire to become a prominent socially responsible corporate citizen in the

Southern Province with ongoing commitment to contribute to the national economy,
generate foreign exchange for the motherland over the last three decades, serving the
rural areas in the province by using its local raw materials especially rubber, operating
income-generating activities for the poor and elderly in the province, opening direct
employment avenues in neighboring villages, and nurturing our indigenous heritage. Our
passion for excellence in the polymer industry has been nurtured by the culture and values
of our DSI Group.

1
About this Report
“This report highlights our performances, business model, strategic directions, investments,
governance, risk management, opportunities, CSR activities, progress which we have made in the
financial year under review and also our future outlook…”
We present this annual report for our 32nd financial year covering the period from 1st of April 2019 to 31st of March
2020 with the theme of “Reaching the Gold Standards”. We have disclosed all the information which are important for
all stakeholders to be aware of. The Company has neither subsidiaries nor associate Companies but it has two business
segments namely Rubber and PVC-related products.
Scope and Boundary

This Annual Report adopted the Integrated Reporting Framework issued by the International Integrated Reporting Council
(IIRC). The report has been prepared in accordance with the Global Reporting Initiative G4 criteria: the core and aspects
and indicators have been selected to best reflect the impacts of its diverse industry exposures. All the write-ups, designs
and formats in this Annual Report were prepared in-house without out sourcing to an external party or advertising agency.
Therefore we have made a genuine effort to meet the expectations of all our stakeholders by providing them with balanced
and relevant information on our own value creation process.
Guiding Principles
We subscribe to and report under several domestic and international regulations, standards and frameworks, the more
significant of which are the following:
• Sri Lanka Accounting Standards,
• Integrated Reporting Framework issued by the IIRC,
• Global Reporting Initiative- G4 Standards,
• Companies Act No 7 of 2007,
• Listing Rules of the Colombo Stock Exchange,
• Code of Best Practice on Corporate Governance issued jointly by the Institute of Chartered Accountants of
Sri Lanka and the Securities and Exchange Commission of Sri Lanka, and
• Code of Best Practices on Related Party Transactions issued by the Securities and Exchange Commission of
Sri Lanka

2
Assurance
The independent auditor’s opinion by Messrs Edirisinghe & Co., Chartered Accountants on the Financial Statements is
available on page 151 of this report.
A combined assurance model is used to ensure the credibility and integrity of our reporting. Internal Audit work is carried
out by Messrs. Ernst and Young quarterly in addition to the work done by our internal audit department. The Company’s
Audit Committee also monitors adequacy and effectiveness of the financial reporting and internal control systems.
We received the Gold Award for the last Annual Report at the 55th Annual Report Awards Ceremony organized by the
Institute of Chartered Accountants of Sri Lanka. Further, we also received the Silver award in the year 2017/18 and a
certificate of compliance for the Annual Reports for five consecutive years from 2012/13 to 2016/17.
Feedback
We welcome your feedback, suggestions and other comments on our Annual Report. Please contact our Secretary, P W
Corporate Secretarial (Pvt) Ltd by email at registrars@pwcs.lk or Mr. Sisira Abeywickrama, Head of Finance by email at
sisiraa@samsonint.com
Theme of Previous Annual Reports
2012/13- Silver Jubilee and beyond
2013/14 – Aimed at versatility
2014/15 - Let the figures do the walking
2015/ 16 – A wide product range sounds better
2016/17 – There is no end to our search for excellence
2017/18 – The road will never be the same
2018/19 - Bringing Excellence to the Surface

3
About
Us
S amson International Plc started its business on 14th October 1988 at a time the open economic policies had got firmly
established in the country with a great tendency among the business community to commence export-oriented projects.
Accordingly, this Company was initially intended to produce rubber-based products largely for export markets. At the time of
incorporating this Company, the land bought for this factory was abandoned and it was an overgrown jungle and away from human
habitations. Now it developed into a popularized semi-urban area due to presence of our factory. This is the greatest deed of social
responsibility Samson International Plc has delivered to the villagers in Bogahagoda. A similar programme is being carried out for the
villagers in Baddegama surround our recently acquired PVC factory. Samson International Plc manufactures and exports moulded and
extruded rubber products such as hot water bottles, jar sealing rings, rubber mats, rubber floorings, beadings and mud flaps mainly
to international markets and also sells rubber and PVC-related products to the local market.
The Company diversified in to PVC market a few years back with the intention of exploiting big & new markets and growth
opportunities in the midst of the boom of the construction industry and positive economic outlook of the country. Samson
International Plc has 456 employees and the main factory is situated at Bogahagoda, Galle. Other two factories are in Baddegama
and Kalutara.
Samson International Plc is a subsidiary of the DSI Samson Group (Pvt) Ltd which was founded in 1962. DSI Samson Group has an
export turnover of more than USD 50 Mn and has a workforce more than 9,000 employees. It also has 28 subsidiary Companies in
Sri Lanka. The majority of their factories in the Group are located in remote rural areas. Samson International Plc is one of them. DSI
Group has a turnover of Rs 28 Bn while Samson International Plc has a turnover of Rs. 1.6 Bn. DSI Group has an export turnover of
Rs. 10 Bn and Samson International Plc has an export turnover of Rs. 675 Mn. DSI Samson Group has received a rating of ‘BBB (Ika)
–Positive Outlook’ by Fitch Rating Lanka Limited.
Corporate Philosophy
Our Vision
We will be a leading polymer product manufacturer in the region.
Our Mission
We will become a versatile manufacturer of diversified
polymer products in the global market by utilizing modern
technology while providing optimum value to stakeholders.
Our Values
Contributing to the country’s socio-economic development,
Respecting our national and religious heritage,
Protecting and safeguarding our environment,
Enhancing disciplined human resources based on the family concept.
Galle Factory

4
Financial
and Operational Highlights
Key Performance Indicators 2019/20
Rs. 1.6 Bn 26% Rs. 1.2 Bn 456 Rs. 34 Mn

Turnover PVC Sales Total Number of Operational
Growth Assets Employees Profit

The Company recorded the highest Turnover
Dividend payout percentage is 34%
Total Revenue Profit before Tax
(Rs.Mn) (Rs.Mn)
2,000 65.97
70
1,569 1,590 59.29
60
1,500
1,178 1,249 50
43.63
Rs.Mn'
1,116
Rs.Mn
1,000 40
30
500 20
8.29 12.86
10
- 0
2015/16 2016/17 2017/18 2018/19 2019/20 2015/16 2016/17 2017/18 2018/19 2019/20
Year Year
Total Assets Market Capitalization

(Rs. Mn) (Rs. Mn)
500
1,500 444
1,195 419 414
1,179 400 373
1,027 1,064
979
305
Rs. Mn
1,000
Rs.Mn
300
200
500
100
0
- 2015/16 2016/17 2017/18 2018/19 2019/20
2015/16 2016/17 2017/18 2018/19 2019/20
Year Year
Dividend ROCE
Pay out % %
12.0%
10.7%
70%
60% 10.0%
60% 7.8%
50% 8.0%
34% 34%
%
40% 6.0%
3.9%
%
30% 23% 20% 4.0%

15% 1.9%
20% 2.0% 0.0%
10% 0.0%
0% 2015/16 2016/17 2017/18 2018/19 2019/20
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Restated
Year Year
5
Financial and Operational Highlights (Contd...)
Financial Highlights
2019/20 2018/19 Variance %
Operating Results
Revenue Rs. 000 1,590,203 1,569,345 20,858 1.33
Operating profit Rs. 000 34,137 71,532 (37,395) (52)
Exchange gain/(loss) Rs. 000 (6,843) (17,058) 10,215 60
Profit before tax Rs. 000 12,086 43,635 (31,549) (72)
Tax on profit (including deferred tax) Rs. 000 225 (18,627) 18,852 101
Profit after tax Rs. 000 12,311 25,007 (12,696) (51)
Exports earnings in US $ Mn 3.55 4.46 (0.91) (0.2)
ROCE % 1.92 3.92
Gross profit to sales % 18.2 19.6
Interest cover Times 1.85 4.16

Financial Position
Dividend cover Times 2.91 2.96
Current ratio Times 1.62 1.58
Gearing % 31 31
Interest Cost Rs. 000 (22,347) (17,425) (4,922) (28)
Financial Investments Rs. 000 36,481 33,669 2,812 8
Shareholder information
Group fitch rating BBB (Ika)-Positive BBB (Ika) –Stable
Dividend per share Rs. 1.00 2.00 (1.0) (50)
Market price per share Rs. 72.10 97.90 (25.8)
Earnings per share Rs. 2.91 5.91 (3.0)
Net assets per share Rs. 151.77 150.76 1.0
Price Earnings Ratio Times 24.78 16.57
Total assets Rs. 000 1,178,575 1,195,251 (16,676) (1)
Number of Shareholders Nos. 1,249 1,235 14 1
Market Capitalization Rs. 000 305,183 414,388 (109,205) (26)
Shareholders’ funds Rs. 000 642,409 638,137 4,272 0.67

Operational Highlights
2019/20 2018/19
No. of factories Nos 3 3
Manufactured Rubber compound consumed Kg 000 1,800 1,567
Capital PVC compound consumed Kg 000 1,874 1,715
Investment in PPE Rs. 000 46,817 56,832
Value additions Rs. 000 398,532 390,441
No. of Employees Nos 456 414

Retention Rate % 98.4 97.9
Employee Remuneration & rewards Rs. 000 297,438 270,732
Investment in Training & Development Rs. 000 667 1,209
Human Training hours 1015 1972
Capital Gender Diversity Ratio (Male : Female) 82:18 79:21
Profit per Employee Rs. 26,998 60,404
Value additions per employee Rs/ month 72,831 78,591
Social Total Taxes Rs. 000 (225) 18,627

Relationship Donation in cash Rs. 362,483 195,568
Capital Energy Consumption Kwh 2,027,118 1,746,498
Natural
Capital Waste rubber reused / recycled Kg 000 54 31.3
Intellectual Investment in IT development Rs. 000 2,244 2,101

Capital Number of awards Nos 7 4

6
Corporate
Information
Name of the Company : Samson International Plc
Legal Form : A public quoted Company with limited liability. It was incorporated on 14th October 1988 and
re-registered under the Companies Act No. 7 of 2007 on 3rd September 2008.
Company Registration number : PQ 192
Stock Exchange listing : The ordinary shares of the Company were listed in the Colombo Stock Exchange of Sri Lanka
on 24th July 1992 and the Company was converted to a public quoted Company.
Principal line of business : Manufacture of rubber and PVC-based products for the international and local markets.
Registered Office : No. 110, Kumaran Ratnam Road , Colombo 02. Te: (011) 4728 800, Fax (011) 2440 890
Email: info@samsonint.com
Directors : Dr D. S. Rajapaksa (Chairman)

Mr D. K. Rajapaksa (Managing Director)
Mr D. R. Rajapaksa
Mr G. H. A. Wimalasena (Resigned on 14th August 2020)
Mr T. K. Bandaranayake
Mr D. G. P. S. Abeygunawardana (Director/ General Manager)
Mr D. D. A. Rajapaksa
Mr. D. C. J. Rajapaksa
Ms. I. Malwatte (Appointed on 14th August 2020)
Audit Committee : Mr T. K. Bandaranayake (Chairman)

Mr G. H. A. Wimalasena
Mr D. R. Rajapaksa
Remuneration Committee : Mr G. H. A. Wimalasena (Chairman)

Mr T. K. Bandaranayake
Related Party Transaction : Mr T. K. Bandaranayake (Chairman)
Review Committee Mr G. H. A. Wimalasena
Secretaries : P W Corporate Secretarial (Pvt) Ltd. No. 3/17, Kynsey Road, Colombo 08. Te (011) 4640 360

7
Corporate Information (Contd...)
Factories
Galle Factory : Akuressa Road, Bogahagoda, Galle. Te (091) 3094 469-72, Fax (091) 2224 036
Kalutara Factory : No. 57/B, Fullerton Industrial Zone, Nagoda, Kalutara. Te (034) 5622 688 Email: info@samsonint.com
Baddegama Factory : Gilcroft Estate, Kiribathwila, Ampegama, Baddegama.

Te (091) 3094 469-72, Fax (091) 2224 036 Email: info@samsonint.com
Parent Company : DSI Samson Group (Pvt) Ltd.
Auditors : Messrs Edirisinghe & Company, Chartered Accountants, No. 45, Braybrook Street, Colombo 02.
Bankers : Hatton National Bank DFCC Bank

Bank of Ceylon Commercial Bank
Seylan Bank People’s Bank

Tax Registrations : Value added Tax No/Income Tax No:114049387-7000
Nation Building Tax No: 114049387-8000
Economic Service Charges Tax No:114049387-9000
Contact Details:
Samson International Plc,
Akuressa Road,
Bogahagoda, Galle.
Tel (091) 3094469-72,
Fax (091) 2224036,
Corporate PLC
Samson international Office
Annual Report 2019/20
8
Corporate
Milestones
Samson International Plc has been on a journey in reaching the gold standard and has marked many
milestones and achievements. These have been analyzed under the category of investments &
acquisitions, product certifications and Awards won.
Year Investments Product Certifications Awards won

& Acquisitions
1988/89 Incorporated as a
private Company
1992/93 Became a public quoted

Company
1994/95 Received the first “ ISO 9001: 1994

certificate” among the rubber-related
product manufacturing companies
in Sri Lanka.
1995/96 Produced Hot Water Bottles with the

British Standard (BS 1970:2006)
and TUV Certification.
2007/08 Invested in the first

Microwave continuous
line machine in Sri Lanka
2009/10 Purchased all assets of

Aksel (Pvt) Ltd.,Kalutara
which produced
Rubber Mats.
2011/12 Received the Gold

Award from the
NCE for the
first time.

9
Corporate Milestones (Contd...)

& Acquisitions
2012/13 Received the Gold

Award from the
NCE for the second
consecutive year.
2013/14 Received the Silver

Award from
the NCE and also
Business Excellence
Silver Award from
the NCC for the
first time, when the
Company
celebrated its Silver
Jubilee.
2014/15 Purchased assets of Received the “ ISO 9001:2008

Okta PVC Lanka (Pvt) Ltd., certificate” for PVC pressure pipes.
Baddegama which
manufacture PVC products.
Issue of bonus shares on

1: 10 to shareholders
2015/16 Produced products with FSC Received the Gold

Certification. Award from NCE
and five other
merit awards.
2016/17 Received Code of Conduct in Business Received Gold

Social Compliance Initiatives (BSCI) Award from NCE
certification on Social Responsibility. for the second
consecutive time
and nine other
awards including
the top ten CNCI
Awards.

10
Corporate Milestones (Contd...)

& Acquisitions
2017/18 Received ISO 9001: 2015, 14001:2015 Received the Gold

Environmental Management Systems Award from the
and 50001:2011 Energy Management NCE for the third
System. consecutive time
and five other
merit awards.
2018/19 Award from the

NCE for the fourth
consecutive time
and Silver award at
the Annual report
competition.
2019/20 Acquisition of an exclusive Received Gold

dealership with a Malaysian Award from the
manufacturer for PVC tap NCE for the fifth
product range. consecutive time
and Gold award at
the Annual report
competition.
NCE – National Chamber of Exports

NCC – National Chamber of Commerce
CNCI – Ceylon National Chamber of Industries

11
Monthly
Operational Highlights - 2019/20
2019 • December
-- Received a Gold award for the Financial Report, in the
• April category of manufacturing companies (Turnover up to
-- Developed new reclaim out of rubber waste in Rs. 5 Bn) from the Institute of Chartered Accountants of
consultation with Rubber Research Institute which is to Sri Lanka on 3rd December 2019.
be used to produce rubber mats. -- Received a certificate of Commendation in National
Productivity Award Competition on 26th December
• May 2019.
-- We developed and exported our new product - Eco
razor - to Germany for the first time.
-- Board proposed a dividend of Rs. 2.00 per share for the
year ended 31st March 2019. 2020
• June • January
-- Held our 27th AGM on 28th June 2019 in Colombo 08. -- Received Bronze award at National Cleaner Production
Awards on 21st January 2020.
• July -- Participated “Jaffna International Trade Fair 2020” in
-- We exported our new product – Root Trainer - to the Jaffna.
Europe for the first time. -- Received Merit award Social Dialogue and Workplace
Cooperation Awards Competition on 22nd January
• August 2020.
-- Received a Merit certificate in Sri Lanka National Quality
Awards Competition on 21st August 2019. • February
-- Participated Construct 2019 exhibition held at BMICH, -- Stepped in to PVC tap business having obtained
Colombo. exclusive dealership with a Malaysian partner.
-- PVC segment recorded the highest Turnover and earned
• September a profit
-- Received the Gold Award from the National Chamber
of Exporters of Sri Lanka on 20th September 2019 for • March
the fifth consecutive years. -- Operation was adversely affected due to the disruption
-- Participated “National Safety Council Congress and from Coronavirus.
Expo – 2019 in San Diego, USA.
• October
-- We exported our new product – Industrial Plug - to the
New Zealand market for the first time.
-- Participated “K - Fair” exhibition and Trade Delegation
visit in Dusseldorf, Germany.
• November
-- Received a certificate of Commendation in Presidential
Environment Awards on 20th November 2019.

12
Awards
Won
“We received the NCE Gold Export Award • Export Awards 2012 – Gold Award
consecutively for five years…” • Export Awards 2011 – Gold Award
• Export Awards 2010 – Silver Award

T he Company received many awards and certifications • Export Awards 2007 – Silver Award
covering every sphere of business this year. The details
of these awards have been highlighted in the Chairman’s
• Export Awards 2005 – Bronze Award
review on page 24 We will use them as a marketing tool to
exploit overseas customers and to further streamline current • Export Awards 2004 – Silver Award
operational systems and procedures. • Export Awards 2003 – Silver Award

Summarized Awards Won in the Past:
1) NCE Export Awards in the category of agriculture value- We have received NCE
added sector from the National Chamber of Exports:
• Export Awards 2019 – Gold Award awards during fourteen

• Export Awards 2018 – Gold Award
• Export Awards 2017 – Gold Award years of the 31 years of

• Export Awards 2015/16 – Gold Award
• Export Awards 2014/15 – Gold Award

existence of our Company
Receiving NCE Gold Award 2019

13
Awards Won (Contd...)
2) National Business Excellence Award in the category of 5) National Quality Circle Awards from the Sri Lanka
manufacturing Sector (medium category) from the National Association for the Advancement of Quality and
Chamber of Commerce: Productivity (SLAAQP):
• National Business Excellence Merit Award in 2017 • SIL Sinha and Silent teams Participated National Quality
• National Business Excellence Merit Award in 2016 Circle Convention on 12th August 2018 and won two
• Excellence in Global Reach Award in 2016 Silver Awards.
• National Business Excellence Merit Award in 2015 • Further, SIL Sinha Team Participated National Quality
• National Business Excellence Award- Runners-up Circle Convention on 14th June 2017 and won a
Award in 2014 Bronze Medal while by participating Inter-Company
Note: The Company did not participate for this Quality Circle Competition on 16th June 2017 and
competition in 2018 and 2019. received a Merit Award.
Note: The Company did not participate for this
3) CNCI Achiever Award in the category of manufacturing competition in 2019.
(extra-large sector) from the Ceylon National Chamber of
Industries: 6) Social Dialogue and Workplace Cooperation Award in
• CNCI Browns Provincial Award and Merit National the category of manufacturing sector (medium category)
Award in 2017 from the Ministry of labour: from the Ministry of labour:
• CNCI Top Ten Award and Browns Provincial Award in • Merit Award in 2019
2016 • Merit Award in 2017
• CNCI Merit Award in 2015 • Merit Award in 2016
Note: The Company did not participate for this • Merit Award in 2015
competition in 2018 and 2019.
4) Sri Lanka National Quality Award in the category of

manufacturing sector (large category) from the Sri Lanka
Standards Institution:
• Merit Award in 2019
• Merit Award in 2016
• Certificate of Commendation in 2015
7) Annual Report Award/Certification in the category of

manufacturing Companies turnover up to Rs. 5 Bn from
the Institute of Chartered Accountants for five consecutive
years:
• Gold Award -2019
• Silver Award -2018
• Certificate of Compliance-2017
• Certificate of Compliance - 2016
14
Awards Won (Contd...)
8) National Productivity Award in the category of 10) Presidential Environment Awards in the category of
Manufacturing sector – Large Scale Rubber Based Products Industries.
• Certificate of Commendation - 2019 • Certificate of Commendation - 2019.
9) National Cleaner Production Awards in the category of 11) Presidential Export Awards:
Manufacturing Large – Rubber Industry. Received in 1996 and 1997
• Bronze Award - 2019.
12) Social Media Campaign Award in the category of
Automotive & other Industries from Sri Lanka Institute of
Marketing
• Bronze SLIM DIGIS Award - 2018
13) Awards received by the Managing Director:

• Dr. Kulatunga Rajapaksa was awarded with
an honorary Doctorate from University of Sri
Jayewardenepura in December 2019 on his
contribution to the growth of DSI Samson Group and
to the Sri Lankan business community.
• Managing Director Mr. Kulatunga Rajapaksa received
“Sri Lanka Entrepreneur of the year (hall of fame)
Award” from the Federation of Chamber of Commerce
and Industry of Sri Lanka, on 11th December, 2017.

15
Chairman’s
Review
“Turnover of our new polymer segment of PVC
grew by 26% and the Company achieved the
highest turnover in the history”
I t is my pleasure to present the Annual Report of Samson

International Plc for the year ended 31st March 2020, which
is our 32nd financial year. The Company achieved the highest
turnover this year too and recorded a turnover of Rs. 1.6
Bn in the current financial year as against the previous year
turnover of Rs. 1.5 bn. The PVC segment turnover went up by
26% from Rs. 340 Mn in the previous year to Rs. 430 Mn in
the current financial year. However, the growth of the rubber
segment was 1%. The profit before tax for the year has been
Rs. 12 Mn which has come down from Rs. 44 Mn in the
previous year. The main reason for the decline is that our
two major export products of Sealing Ring and Hot Water
Bottle to Europe declined due to the Coronavirus outbreak
and unfavorable weather condition for our products.
However, the Company is in the process of taking the
steps to prevent such declines by exploring new markets.
The loss of the PVC segment declined by 50% to Rs. 24
Mn in the current financial year. The Company expects
to run at a profit from this PVC segment. Recently the
Company obtained an exclusive dealership for water
taps with a Malaysian manufacturer in order to widen
the PVC product range.
We had been facing a severe competition from

China for our products in export and local markets
even though we produce comparatively high
quality products. Now we have received a golden
opportunity to regain some of the export markets
due to the short supply of Chinese products
which resulted from the recent corona epidemic.

24
Chairman’s Review (Contd...)
Awards
This financial year, it is indeed a great honor to mention that our Company received seven awards and certifications covering every
sphere of the business. This includes winning the Gold award from National Chamber of Exports of Sri Lanka for the fifth consecutive
year and also obtaining the Gold award for the previous year’s Annual report from the Institute of Chartered Accountants for the
first time. We at Samson International Plc sincerely thank all our customers, shareholders, employees and other stakeholders as this
could not have been achieved without your continuous support.
Area Awarder Award
1 Export The National Chamber of Exporters of Sri Lanka Gold Award

on 20th September 2019 (for the fifth consecutive year)
2 Finance The Institute of Chartered Accountants of Sri Lanka for Gold Award
the Annual Report on 3rd December 2019 (for the first time)
3 Production National Cleaner Production Center on 21st January 2020 Bronze Award
4 Quality Sri Lanka Standard Institute on 21st August 2019 Merit Award
5 Human Resources Department of Labour on 22nd January 2020 Merit Award

(Social Dialogue and
Workplace Cooperation)
6 Productivity National Productivity Secretariat on 26th December 2019 Certificate of Commendation
7 Environment Central Environmental Authority on 20th November 2019 Certificate of Commendation

By applying for the above award competitions, the Company was able to achieve process improvements, minimization of risk,
maintaining a sound relationship with stakeholders, enhance the Company reputation and use as a marketing tool.
Operational Review
The operational matters have been explained in detail under Managing Director’s Operational review on page 27.
Dividends
The Board of Directors decided to recommend a dividend of Rs. 1.00 per share in the year under review. (Last year - Rs. 2.00 per
share)
Appreciation
I would like to thank Mr. G.H.A. Wimalasena for the enormous contribution given to the Company during last 9 years and I would
also wellcome Ms. I. Malwatte to the board. I would like to especially thank our invaluable and loyal customers and the Board of
Directors for their visionary guidance, the management and every employee of the Company for the dedication and commitment
extended to the Company.
I would also like to thank our bankers and all our suppliers for their support. We deeply appreciate the faith of our shareholders in
our Company and we assure them of a bright and better future.
Dr. D. S. Rajapaksa
Chairman
Colombo
14th August 2020
25
Managing
Director’s Operational Review
“The Company will make use the every opportunity
to exploit some export markets due to the current
resistance of Chinese products. In the year, the
Company was able to win seven awards including
two gold awards covering every sphere of the
business.”
I t is a pleasure to inform you that the Company recorded

the highest turnover of Rs. 1.6 Bn in the current financial
year (as mentioned in the Chairman’s Review) as against the
previous year’s turnover of Rs. 1.5 Bn. Samson International
Plc operates in the export as well as local market in a wide
range of rubber and PVC-related products. Our export portfolio
consists of a variety of extruded and moulded rubber products
for numerous international brands. The main contributor to
sales growth is the PVC segment. However, profit before tax
of the Company decreased from Rs. 44 Mn in 2018/19 to
Rs.12 Mn in 2019/20. The main reason for this decline was
the decrease in export sales of Sealing Rings and Hot Water
Bottles to the European market due to unfavorable weather
conditions in this region and Coronavirus issue in the globe.
We will however regain this high contributing jar sealing
ring and hot water bottle sales in the near future. Further, a
great opportunity has arisen for us due to the short supply of
products from China, our main competitor in many products.
We have obtained a consistent turnover growth in the past and

the turnover and profit before tax over the last ten years are as
shown below:
Annual Turnover
1,800
1,569 1,590
1,600
1,400 1,249
1,178 1,116
1,200 1,042
974
Rs.Mn
961 953
1,000
716
800
600
400
200
-
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Year
27
Managing Director’s Operational Review (Contd...)
Profit before Tax for Research and Development (R&D) work and increased
80
66
the number of professionals in the R&D department.
63 59
60 51 43 44
40 2) The ability to identify and effectively respond to evolving
Rs.Mn
19
20 8 12
customer requirements is a strength we have. We
-
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Restated
therefore continue to widen our product portfolio to
(20)
cater to the dynamics. We have participated in local and
(40)
foreign exhibitions to seek new customers especially in
(60)
(56)
(80)
the USA and UK this year. At present our products are
Year
available in 32 out of 194 countries. During the year we
Monthly Sales - Segment wise found four new overseas markets including Ecuador,
100
Singapore, Netherland and China.
90
80
3) We project to record dramatic sales growth in the PVC
70
Rs.Mn
60 segment in the coming financial year too, as achieved

50
in the last two financial years. We continuously widen
40
30 the product range and apply for tenders in government
20
institutions. In the financial year under review, we signed
10
- an exclusive agreement with a reputable Malaysian
April May June July August September October November December January February March
Month manufacturer for water taps. Further, we are in the
Export (Mn) Local - RubberSale (Mn) PVC (Mn) process of buying a high-tech extruder to manufacture
large size pressure pipes required for government
During the year, PVC sales increased from Rs.340 Mn in institutions. We maintain tight cost control in all
2018/19 to Rs.430 Mn in 2019/20, which is a growth of 26% expenditures. Constant efforts are made to find more
for the second consecutive year. The turnover in the rubber economical sources of raw materials, which will continue
segment decreased by 5% from Rs.1.2 Bn in 2018/19 to Rs.1.1 to reduce costs. Efficient working capital management is
Bn in 2019/20. The profitability in PVC segment declined coupled with other cost-saving initiatives. We hope to run
especially in the third quarter of the year due to the presidential at a profit in the PVC segment during the year 2020/21.
election atmosphere and excessive rain in most of the areas
in the country. However, the loss from this new PVC segment 4) The DSI Group has over 9,000 employees and Samson
declined by 50% from Rs. 45 mn in 2018/19 to Rs. 25 Mn in International Plc has 456 employees. Developing
2019/20. employee capabilities is a key priority for both rubber and

PVC segments and we continued to invest in enhancing
Despite extremely challenging industry conditions, both globally leadership and technical skills. We provide training for all
employees to develop their talent including out-bound
and locally, the Company adopted a long-term view of value
training programs. Further we provide overseas training
creation, investing in innovation, automation, people and its
for professionals from time to time. During the year,
infrastructure. For this, Samson International Plc follows the
the Company paid an extra bonus to all employees for
under-mentioned strategy to retain its leadership position in all
achieving the gold award from the National Chamber of
our product lines and markets.
Exports for the fifth consecutive year. In the previous year,
all employees were taken on a four-hour adventure ship
1) New product development is an ongoing process and is
tour for whale watching in the Southern sea from Galle
a result of the collective effort of the R&D and marketing
to Mirissa by ship of the “Princess Lanka” owned by the
teams. During the year we developed fifteen new
Sri Lanka Navy. However, due to the Corona outbreak,
products in the overseas and local markets (Please see
we cut down some of the administrative, selling &
page 104). We invest more than Rs. 25 Mn per annum
distribution and welfare expenses.
on Research and Development (R&D) activities, which is
around 2% of our turnover. We continuously obtain the
services of Sri Lankan universities and foreign consultants

28
Managing Director’s Operational Review (Contd...)
5) As an organization engaged in manufacturing activities, the Company paddy field to Samurdhi beneficiaries in
maintaining and ensuring an injury and hazard-free work Bogahagoda.
environment is our responsibility. Providing our employees
with a work environment that is conducive to genuine
contentment leads to high motivation and greater Future
productivity. During the year, we obtained the carbon Sri Lanka must develop an entrepreneurial culture to achieve
foot print certificate. Further, we follow the advice given sustainable development. We should exploit all possible export
by World Health Organization to prevent the spread of markets from the great opportunity arising from the short
Coronavirus and educate all employees and visitors. supply of Chinese products. We should turnaround our loss
making PVC segment soon. We continue to maintain good
6) During the year, the Company won seven awards manufacturing practices, streamline our process and invest in
including two gold awards covering every sphere of the our people to achieve greater productivity. We are committed
business as mentioned in the Chairman’s review. We to our community development initiatives and manage our
were granted ISO 50001 on Energy Management and ISO
environment effectively. Our effort is to further strengthen our
14001 on Environmental Management this year too. We
financial management, optimal cost structure, best practices in
have enjoyed ISO status for rubber since 1994 and we are
governance and risk management lead to achieve our strategic
the first rubber-related product manufacturing Company
goals.
to receive the ISO 9001:1994 Quality Management
Certificate. We also received the British Standard (BS
I would like to thank all the members of management and
1970:2006), TUV Certification and FSC Certification for
every employee of the Company for their dedication and
our products. All raw materials used to manufacture our
commitment to the Company during the year.
products conform to the “REACH” regulations of Europe.
The Company was awarded the BSCI International
Certificate following an evaluation of social responsibility
and adherence to international and local laws. We have
achieved significant international recognition in terms D. K. Rajapaksa
of product quality. Product specification requirements Managing Director
have to be studied in each country in detail and the Colombo
products must be tailor made to meet those standards.
14th August 2020
The product that is selling extremely well in the domestic
market can totally fail in certain export markets.
6) The Company is continuously focusing on expansion and

re-engineering its manufacturing processes. This year
we invested in a modern PVC extruder, expansion of PVC
stores with a new building and upgrading the sealing
ring packing section and steam distribution system. The
Company upgrades and strengthens its engineering
capabilities to face the demands of the sophisticated
international market.
7) We maintain excellent rapport with our neighbours and

villagers which seems to be constructive and improving.
Further, our main focus is on contributing to the welfare
of rural communities by offering them many more
employment opportunities and uplifting their living
standards. Every year we donate rice from the harvest of

29
Profiles
of the Directors
The Profiles of the Board of Directors as at 31st March 2020 is as follows.
1. Dr. D. Samson Rajapaksa

M.B.B.S (Cey), F.R.C.O.G. (U.K.), M.S. (S.L.)
Chairman
Appointed to the Board on 14th October 1988 (since the inception)
Skills & Experiences

Dr Samson Rajapaksa is a medical practitioner by profession and counts over three
decades of experience with DSI Group. He served as the Chairman of DSI Samson
Group (Pvt) Ltd. until 19th November 2018.
Other Appointments
He is also a Director of Samson Plantations (Pvt) Ltd.
In addition to being on the DSI Samson Group (Pvt) Ltd. Board, he is a Consultant
Obstetrician and Gynecologist in the private sector. Dr. Samson Rajapaksa serves as
a Committee Member of the Young Members Buddhist Association and of the Sri
Lanka Medical Library.
Number of shares held in the Company

1 share
2. Dr. D. Kulatunga Rajapaksa

PhD (H.C.) University of Sri Jayawardenapura
D. Litt University of Westminster
B. Sc (Hons) University of Peradeniya
Managing Director
Skills & Experience

Mr. Kulatunga Rajapaksa was the Chairman of DSI Samson Groups (Pvt) Ltd. from
19th November, 2018 until 20th January 2020. He has over 54 years of experience
in the manufacture of footwear and rubber products.
Other Appointments
He has served as a Council Member of several universities and is a past president
of the National Chamber of Exporters of Sri Lanka and also of the Sri Lanka
Association of Manufacturers and Exporters of Rubber Products, Sri Lanka Footwear
& Leather Products Manufacturers Association, Chairman of the Wellassa Rubber
Company Limited, and a Director of the Mawbima Lanka Foundation.
Dr. Kulatunga Rajapaksa was awarded with an honorary Doctorate from University
of Sri Jayewardenepura in December 2019 on his contribution to the growth of DSI
Samson Group and to the Sri Lankan business community.

10,959 shares

30
Profiles of the Directors (Contd...)
3. Mr. D. Ranatunga Rajapaksa

Dip. In Technology
Non - Executive Director
Skills & Experiences

Mr Ranatunga Rajapaksa is the Managing Director of Samson Rubber Industries (Pvt)
Ltd., a Company that specializes in the designing, manufacturing and exporting of
tyres and tubes. He was promoted to the Managing Director of DSI Samson Groups
(Pvt) Ltd. on 19th November, 2018.
Other Appointments
He is also the Managing Director of DSI Samson Group (Pvt) Ltd, Samson Rubber
Products (Pvt) Ltd., DSI Tyre India (Pvt) Ltd. and a Director of several other subsidiary
Companies of the DSI Samson Group.
Mr. Ranatunga Rajapaksa plays a major role in expanding the Group’s overseas
business and has more than 47 years of experience with DSI Group.
Board committees
Audit Committee

11,350 shares
4. Mr. G. H. Ananda Wimalasena

B.Sc.,ACMA (UK), Higher Diploma in Management (London College of Printing, U.K.)
Independent, Non –Executive Director
Appointed to the Board on 31st March 2009 and retired on 14th August 2020.
Skills & Experience

Mr. Ananda Wimalasena was the Founder-Managing Director of Asiri Hospital Group
of Companies from 1980 to 2006. Mr. Ananda Wimalasena has experience and
extensive exposure in management and health services.
Other Appointments
He also serves as the Chairman of Chairman in ITMC (Pvt) Ltd.. He was the previous
Chairman of the Civil Aviation Authority, Airports & Aviation Services (Sri Lanka) Ltd.
and chairman of the State Pharmaceutical Corporation.
Board committees
Audit Committee
Related Party Transactions Review Committee

Nil

31
5. Mr. Tissa K. Bandaranayake

B.Sc. (Cey), FCA
Independent, Non – Executive Director
Appointed to the Board on 31st March 2009
Skills & Experience

Mr. Tissa Bandaranayake has more than 50 years commercial and professional experience
and was a Senior Partner of Ernst & Young from where he retired after 28 years, having
serviced a large portfolio of clients, both local and multinational in various industries. Mr. Tissa
Bandaranayake is a Past Chairman of the Audit Faculty of the Institute of Chartered Accountants
of Sri Lanka.
Other Appointments
He currently serves as a Director in Laugfs Gas Plc, Overseas Realty (Ceylon) Plc, Renuka Foods
Plc, Renuka Holdings Plc, Micro Holdings (Pvt) Ltd., Harischandra Mills Plc, Brown & Company Plc
and Nawaloka Hospitals Plc. He also serves as a Consultant to the Board of Directors of Noritake
Lanka Porcelain (Pvt) Ltd..
He serves as Chairman of the Quality Assurance Board established by the Institute of Chartered
Accountants of Sri Lanka comprising senior members of the accounting profession as well as
representatives of public sector regulatory bodies such as the SLAASMB, CBSL, etc.
Board committees
Audit Committee

Nil
6. Mr. D. G. Priyantha S. Abeygunawardana

MBA, LLM, LLB, FCA, FCMA, FCCA, MCIM, Attorney-at -Law
Director / General Manager
Appointed to the Board on 08th August 2013
Skills & Experience

Mr. Priyantha Abeygunawardana is a triple-qualified Accountant holding the fellowship of CA,
CIMA, ACCA and also an Attorney–at-Law. He obtained his LLB degree from the Open University
of Sri Lanka and took his oaths as an Attorney-at-Law in 2004, having passed the requisite
examinations held by the Sri Lanka Law College.
He also holds two Master’s degrees in two different fields, namely, MBA from the University of
Sri Jayewardenepura specializing in Finance, and LLM from University of Colombo specializing in
Company Law, Labour Law and Banking Law.
He is also member of Chartered Institute of Marketing, UK.
Previously he was at Ford, Rhodes, Thornton & Company, Hayley’s, Abans and lastly at Richard
Piers Exports Plc, where he worked as General Manager for six years. With regard to his
sports carrier, he toured Malaysia and Thailand with the Mercantile Hockey Association team
(Combined Companies) as vice-captain in 1992. He also toured India with the Sri Lanka Schools’
Hockey team as vice-captain in 1979. He played in the CR & FC Hockey team from 1978 to 1988
and captained the CR & FC in 1986. He played Hockey and Football for Nalanda College for
several years. Under his captaincy in 1979, Nalanda College Hockey team emerged champions in
the under 19 All-Island inter school tournament.
Other Appointments
No other appointments.

110 shares

32
07. Mr. D. Dilshan A. Rajapaksa

M.Sc. (Australia), B.Sc.Hons (UK)
Director - Marketing
Appointed to the Board on 01st June 2015
Skills & Experience

Mr. Dilshan Rajapaksa has more than 10 years Management & Information Technology
experience in both local and overseas Companies before joining DSI in 2007. He oversees
the marketing operations of the rubber sector (export and local) in Samson International
Plc.
He holds M.Sc. in Business Systems from the University of Monash, Australia and B.Sc.
(Hons) in Information Systems from the University of Manchester Metropolitan, UK.
Other Appointments
He serves as a Director of DSI Samson Group (Pvt) Ltd., D. Samson Industries (Pvt) Ltd.,
Samson compounds (Pvt) Ltd., Samtessi Brush Manufacturers (Pvt) Ltd, Samson Rajarata
Tiles (Pvt) Ltd., Samson Insurance Brokers (Pvt)Ltd and., Samson Investments (Pvt) Ltd..
Board committees

Nil
08. Mr. D. Chandula J. Rajapaksa

M.Sc. (Australia), B.Sc. (UK)
Non-Executive Director
Appointed to the Board on 10th August 2018
Skills & Experience

Mr. Chandula Rajapaksa has more than 6 years Management experience in both local
and overseas Companies. Previously he worked at Price Water House Coopers, Sri Lanka.
He holds M.Sc. in International Business from the University of Monash, Australia and
B.Sc. in Business with Information Technology from the University of Staffordshire
University, UK. He is also passed finalist of Chartered Management Accountants of UK.
Other Appointments
He serves as a Managing Director of Samson Exports (Pvt) Ltd., Hydro Trust Lanka
(Pvt) Ltd., Werapitiya Hydro Power (Pvt) Ltd., Loggaloya Hydro Power (Pvt) Ltd. and
a Director of Samson Rajarata Tiles (Pvt) Ltd., Samson Trading Company (Pvt) Ltd.,
Samson Manufacturers (Pvt) Ltd., Samson Group Corporate Services (Pvt) Ltd., Samson
Compounds (Pvt) Ltd., Samson Apparel Makers (Pvt) Ltd., Samson Bikes (Pvt) Ltd. and
Samson Engineers (Pvt) Ltd.

Nil

33
The right people with the

right skills …
Analysis of Directors’ Professional Background: Service Analysis of Directors as 31st March, 2020:
Professionally No. of Directors Service No. of Directors
qualified area on the Board Category on the Board
1 Medical 1 1 0 – 4 Years 2
2 Science 3 2 5 – 8 Years 1
3 Engineering 1 3 9– 12 Years 2
4 Finance 3 4 13– 16 Years -
5 Management 3 5 17– 20 Years -
6 Marketing 1 6 21 – 24 Years -
7 Law 1 7 25 – 28 Years -
8 Information Technology 2 8 29 – 30 Years 3

34Board of Directors
Profiles
of the Executive Management
Dr. Kulatunga Mr. Priyantha

Rajapaksa Abeygunawardana
PhD (H.C.) University of Sri Jayawardenapura MBA, LLM, LLB, FCA, FCMA, FCCA, MCIM, Attorney-at -Law
D. Litt University of Westminster
Director/ General Manager
B. Sc (Hons) University of Peradeniya
Managing Director Please refer page No. 32 for the profile
Please refer page No. 30 for the profile
Marketing - Rubber Sector
Mr. D. Dilshan A.
Rajapaksa
M.Sc. (Australia), B.Sc.Hons (UK)
Director - Marketing
Please refer page No.33 for the profile

35
profiles of the Executive Management (Contd...)
Mr. Sanjeewa Weerakkodi

MBM, BA (Hons) (Economics), ACIM
Marketing Manager
Mr Weerakkodi, is the Head of Marketing for the rubber segment and joined Samson International Plc in
2004. He holds a Master of Business Management from university of Colombo and a BA Honors degree
in Economics from the University of Peradeniya. He is also an Associate Member of the Chartered Institute
of Marketing, UK. Previously he worked in a rubber products manufacturing Company registered under
BOI for two years.
Mr Naveendra Kumara
MBA, MAAT, Dip in Business Mgt.
Manager - Commercial
Mr. Navindra Kumara has over 27 years’ experience at Samson International Plc and has served the
Company since 1990. He has worked in different key positions during his career at Samson International
Plc and now he is the head of the Commercial Department and also works for European market as a
Manager-International Marketing. He holds an MBA from Manipal University of India, MAAT Sri Lanka,
and a Diploma in Business Management from NIBM.
Mr. Chanuka Jayasinghe

MPA (Australia), BBM (India), Adv.Dip.Acc (Australia)
Assistant Business Development Manager
Mr. Chanuka Jayasinghe is responsible for developing new international markets. He previously worked
for Microcells (Pvt) Ltd as a Senior Executive, international Marketing. Chanuka has over four years’
experience in marketing rubber products combined with his four years’ experience in the hospitality
industry in Australia. He possesses a Master’s degree in Professional Accounting from the University of
Ballarat, Australia, and a Bachelor’s degree in Business Management from the University of Bangalore,
India.
Mr. Saminda Madushanka

Marketing Executive
Mr. Saminda Madhusanka joined Samson international PLC on 1st of January 2019. He had 4 year
experience as a Marketing Executive in the field of Construction at Geed Technologies (Pvt) Ltd.. He
oversees the Local Market.

36
Marketing - PVC Sector
Mr. Nishantha Abeygunawardana

Business Development Manager
Mr. Abeygunawardana joined Samson International Plc in July 2014 when we stepped into the PVC
business. At present, he is the Head of Marketing for the PVC segment. Previously, he worked at
Associated Motorways Ltd., Central Industries Plc and Okta PVC Lanka (Pvt) Ltd. for eighteen years. All
Field Sales Managers report to him.
Mr. P. Weerarathna
Field Sales Manager
At present he is overseeing in the Southern, Sabaragamuwa and Eastern Provinces. He joined Samson
International Plc on 15th September 2015 as Regional Sales Manager. He has worked 11 years at Kamal
PVC Industries (Pvt) Ltd and 2 years at Janashakthi Insurance PLC. He studied at Embilipitiya Maha
Vidyalaya.
Mr. M.M.P. Kithulwatta

Field Sales Manager
At present he is overseeing in the Western, Central, North Central and Wayaba Provinces. He has
worked 5 years at Kamal PVC Industries (Pvt) Ltd., 4 years at Central Industries (Pvt) Ltd. and 2 years at
St. Anthony’s Group (Pvt) Ltd. He works as the regional manager for the western north. He studied at
Mitigahathanna Vidyalaya, Badulla.
Mr. Janaka Sapukotana

Institutional Sales Manager
Mr. Sapukotana joined Samson International in October 2016 as Assistant Business Development
Manager to handle the PVC projects. Previously he worked at Arpitech (Pvt) Ltd. as Sales Executive for 15
years from 2000 to 2016. He studied at Prince of Wales College, Moratuwa.

37
Mr. Pradeep Indika Somapala

Regional Manager
He has worked 14 years at Kamal PVC Industries (Pvt) Ltd and 2 years at Apex Combine (Pvt) Ltd. He
works as the regional manager for the western south. He studied at Vidyadarshi Maha Vidyalaya,
Anuradhapura. He has worked in many provinces in the Island.
Mr. M. Z. Ziyad
Regional Manager
He has worked 2 years at Kamal PVC Industries (Pvt) Ltd., 1 years at Central Industries (Pvt) Ltd. and 3
years at Almarai Company in Saudi Arabia. He works as the regional manager for the Eastern Province. He
studied at Central College, Ampara.
Research & Development
Mr. Wimal Siriwardana

Dip. in Rubber Technology; Certificate in Hydraulic Technology
Executive, Research and Development, Galle and Kalutara Factories
Mr. Siriwardana has over 25 years’ experience in research and development including at Samson
International Plc and Samson Compounds Ltd.. He holds the Diploma in Rubber Technology and
Certificate in Hydraulic Technology and is a member of the Plastic and Rubber Institute of Sri Lanka.
Mr. D.K. Dilan Madhushanka

Executive, Research and Development
Mr. Madhushanka joined as R&D Executive on 1st May 2018. He obtained his National Diploma in
Technology from the University of Moratuwa in 2015. He previously worked at Samson Rubber Industries
(Pvt) Ltd. as Executive in R&D Department for three years from February 2015 to January 2018.

38
Ms. Piumangani Seneviratne

BMS (Sp) (OUSL), Dip. in Mgt (OUSL)
Manager - Logistics
Ms Senevirathne handles the logistic operations of the rubber sector. She joined Samson International Plc
in 1995 and has held several managerial positions in the shipping, stores and supply departments. She
was in the export department from 1995 to 2010. She holds Bachelor of Management Studies (Special)
Degree and a Diploma in Management from the Open University of Sri Lanka.
Finance
Mr. Sisira Abeywickrama
B.Sc.(B.Ad.)Sp, ACA
Executive, Finance
Mr. Sisira Abeywickrama is a Chartered Accountant and holds a B.Sc. Business Administration (Special)
degree from the University of Sri Jayewardenepura. He joined Samson International Plc recently as the
Head of Finance. He did his articles at Jayasinghe & Company. Prior to joining Samson International Plc,
he worked at Asoka Glass & Company and Maga Naguma Road Construction and Equipment Company.
He has five years post qualifying experience as a Chartered Accountant.
Production
Mr. Asanka Dimuth Edirisinghe
Dip. in Engineering Science
Executive, Production, Galle Factory
Mr Asanka Edirisinghe is the Production Executive of the Galle Factory. He holds a National Diploma in
Engineering Sciences. He joined Samson International Plc on 1st of July 2013 and previously worked at
Johnson Controls, Qatar, for three years as Service Engineer and at D. Samson Industries (Pvt) Ltd. for two
years as Research & Development Engineering Assistant.
Mr. M. A. P. Janakantha
Dip. in Engineering Science; Dip. in Rubber Technology
Executive, Production, Baddegama and Kalutara Factories
Mr. Janakantha holds a National Diploma in Engineering Sciences from the Institute of Engineering
Technology and a Diploma in Rubber Technology from the Rubber & Plastic Institute. He has more than 21
years’ technical experience, of which 19 years has been at Samson International Plc. At present, he is the
Production Executive at the Baddegama and Kalutara factories.

39
Mr. Himal Jayaranga

MBA, B.Sc. Engineering (Hons), AMIE
Executive Production Engineer
Mr. Jayaranga works as Production Engineer at Baddegama PVC Factory. He holds an MBA from Cardiff
metropolitan University and a B.Sc. Eng (Hons) degree from the University of Moratuwa. He is an
associate member of institute of Engineers and is responsible for all research and development activities at
the PVC plant. Previously, he worked as Production Engineer at St. Anthony’s Industries, Ekala.
Quality Assurance
Mr. Namal Nishantha
B.Sc., Dip. in Rubber Technology
Quality Assurance Manager
Mr. Namal works as Quality Assurance Manager and is the Management Representative of the Company
for various quality-related audits. He holds a B.Sc Degree from the University of Kelaniya and also
a Diploma in Rubber Technology. He Joined Samson International Plc in 1998 and has 21 years of
experience working in the Quality Assurance Department of the Company.
Engineering
Mr. Nilantha Jayalal Gamage
Dip. in Technology; PgDMM
Executive, Engineering
Mr. Nilantha holds a National Diploma in Technology from the University of Moratuwa and has completed
his Postgraduate Diploma in Manufacturing Management at the University of Colombo. He worked
at Brollo Pipes and Profile Ltd, Nigeria, as Mechanical Engineer for two years prior to joining Samson
International Plc in 2012.
Mr. Sudeshpriya Gamage

Dip. in Technology
Executive, Engineering
Mr. Sudeshpriya Gamage joined as Engineer on 15th January 2017. He obtained his National Diploma
in Technology from the University of Moratuwa in 2012. He previously worked at Rodrogo & Sons (Pvt)
Ltd for five years from February 2012 to January 2017. He is responsible for all moulds/die designing and
improvements in all three plants.

40
Human Resources
Ms. Nishanthi Padmakumari
Dip. in Human Resources Management
Executive, Human Resources
Mrs. Padmakumari joined Samson International Plc in 1993 and is the Head of the Human Resources
Department at present. She holds a Diploma in Human Resource Management from NIBM and has over
25 years of experience in Human Resource Management.
Analysis of Educational and Professional qualifications of the Executive Management as at 31st March, 2020
Category Number of executives with Number of executives

academic qualifications with professional
qualifications
Master’s Degrees 5 -
Bachelor’s Degrees 9 -
Diplomas (Engineering and Production etc.) 11 -
Professionally qualified in Accountancy 2
Professionally qualified in Law 1
Professionally qualified in Marketing 2

Professionally qualified in Human Resource 1
Total 25 6

41
Organization Structure

42
Review
of the External Environment
“There is a high risk of the coronavirus disease Growth in the euro area is projected to pick up from 1.2
(COVID-19) spreading to the countries around percent in 2019 to 1.3 percent in 2020. In the United Kingdom,
the world which adversely affected to global growth is expected to stabilize at 1.4 percent in 2020 and firm
growth...…” up to 1.5 percent in 2021. Japan’s growth rate is projected to

moderate from an estimated 1 percent in 2019 to 0.7 percent
Global Economic Outlook in 2020.
P opulation in the world is currently (2020) growing at a rate For the emerging market and developing economy group,
growth is expected to increase to 4.4 percent in 2020 and
of around 1.05% per year (down from 1.08% in 2019,
1.10% in 2018, and 1.12% in 2017). The current average 4.6 percent in 2021 from an estimated 3.7 percent in 2019.
population increase is estimated at 81 million people per year. The growth profile for the group reflects a combination of
The world population is 7.8 Billion people in 2020. projected recovery from deep downturns for stressed and
underperforming emerging market economies and an ongoing
The global growth for 2019 is estimated at 2.9 percent which structural slowdown in China. Growth in emerging and
is a decline from 3.6 percent in 2018. Prior to the Corona developing Asia is forecast to move up slightly from 5.6 percent
outbreak, it had estimated a growth of 3.3 percent and 3.4 in 2019 to 5.8 percent in 2020 and 5.9 percent in 2021.
percent for the year ended 2020 and 2021 as per the World
Economic Outlook, 2020. This has favourably resulted from In the meantime, the World Health Organization has advised
US-China trade negotiations and diminishing fears of Brexit. the following measures to be taken to prevent the spread of
The recent developments and implications for the forecast Coronavirus and Samson International Plc practices them as far
are trade policy uncertainty, geopolitical tensions, intensifying as possible.
social unrest in several countries, weather-related disasters-

from hurricanes in the Caribbean, to drought and bushfires 1. Workplaces are clean and hygienic
in Australia, floods in eastern Africa, and drought in southern 2. Promote regular and thorough hand-washing by
Africa. The above figures were projected prior to Coronavirus employees, contractors and customers
disruption and this projected figures might come down as this 3. Promote good respiratory hygiene in the workplace
was adversely affected to many countries. 4. Advise employees and contractors to consult national
travel advice before going on business trips
Prior to the Corona outbreak, in advance economies, the World 5. Vigilant about the country we travel
Economic Outlook had forecasted a downward trend for the

growth rate. It was projected 1.7 percent this year (2.2 percent
in 2018) and for next two years, 1.6 percent will be projected
for each year. In the United States, growth was expected to
moderate from 2.3 percent in 2019 to 2 percent in 2020 and
decline further to 1.7 percent in 2021.

43
Review of the External Environment (Contd...)
Overview of the World Economic Outlook Projections

Estimate Projection
2018 2019 2020 2021
World Output 3.6 2.9 3.3 3.4
Advanced Economies 2.2 1.7 1.6 1.6
United States 2.9 2.3 2.0 1.7
Euro Area 1.9 1.2 1.3 1.4
Germany 1.5 0.5 1.1 1.4
France 1.7 1.3 1.3 1.3
Italy 0.8 0.2 0.5 0.7
Spain 2.4 2.0 1.6 1.6
Japan 0.3 1.0 0.7 0.5
United Kingdom 1.3 1.3 1.4 1.5
Canada 1.9 1.5 1.8 1.8
Other Advanced Economies 2.6 1.5 1.9 2.4
Emerging Market and Developing Economies 4.5 3.7 4.4 4.6
Emerging and Developing Asia 6.4 5.6 5.8 5.9
China 6.6 6.1 6.0 5.8
India 6.8 4.8 5.8 6.5
ASEAN 5.2 4.7 4.8 5.1
Emerging and Developing Europe 3.1 1.8 2.6 2.5
Russia 2.3 1.1 1.9 2.0
Latin America and the Caribbean 1.3 1.1 2.0 2.5
Brazil 1.3 1.2 2.2 2.3
Mexico 2.1 0.0 1.0 1.6
Middle East and Central Asia 1.9 0.8 2.8 3.2
Saudi Arabia 2.4 0.2 1.9 2.2
Sub- Saharan Africa 3.2 3.3 3.5 3.5
Nigeria 1.9 2.3 2.5 2.5
South Africa 0.8 0.4 0.8 1.0
Source: World Economic Outlook, 2020
Ease of doing business ranking Pakistan also improved their positions in 2019 compared to
It is noted that Sri Lanka improved the Ease of doing business the previous year. The ease of doing business ranking of our
ranking from 111 to 100 out of 190 countries with a DTF score competing countries for our rubber products are as follows.
of 58.86. China has improved it tremendously and India and

44
sustained revival of real economic activity through improved

DB Rank DB Score
utilization of domestic resources, both physical and human.
2019 2020 Economy 2019 2020
This would help achieving the goal of the government to create
27 21 Thailand 80.1 79.5
productive employment opportunities in the economy on a
43 33 Turkey 75.3 76.8
large scale.
73 73 Indonesia 68.2 69.6
46 31 China 74.0 77.9
Prior to the Corona outbreak, Sri Lankan government
61 56 Kenya 71.0 73.2
took several measures to re-engineer Sri Lanka’s tax Policy
77 63 India 67.5 71.0
framework with a view to stimulate economic activities and
100 99 Sri Lanka 61.8 61.8
ease the tax burden on the general public that created a
136 108 Pakistan 55.5 61.0
conducive environment for the private sector for their business
planning and investment decisions thereby more economic
Sri Lanka Economy
activities will be generated in the short to medium term,
The Sri Lankan economy faced significant challenges in 2019,
boosting economic growth. The removal of Nation Building Tax
emanating from movements in the global economy as well
(NBT) and the reduction of value Added Tax (VAT) to 8 percent
as domestic developments. Fiscal and monetary measures
has reduced prices of most goods and services which will also
put in place in the past to stabilize balance of payments and
result in a moderation in inflation. It also provided Incentives
fiscal balances, adverse consequences of the Easter Sunday
for tourism, IT and enabling services, construction and property
terrorist attacks and the prevailed political uncertainties have
market, exports and rural agriculture and overseas employment
significantly weighed down on the performance of the Sri
earning for professionals with the intention to drive the
Lankan economy. The spillover effects of the Easter Sunday
economy with price stability.
attacks in particular, were felt across almost all spheres of
economic activity, especially in the second quarter of the year.
In line with a global downward trend, the World Bank
Consequently, below potential economic growth performance
projected growth in South Asia to slow to 5.9 percent in 2019.
continued through 2019. Further, due to the Crorona outbreak,
A slight rebound in investment and private consumption could
during the last two months of the financial year, all business
jump start South Asia’s growth up to 6.3 percent in 2020 and
entities were severely affected. Samson International Plc too
6.7 percent in 2021. However, this was projected just before
was adversely affected and sales came down in this period.
the disruption from the new Coronavirus disease.
The economy grew at a slow pace of 2.6 per cent in real
In January 2020 the World Health Organization (WHO)
terms in the first nine months of 2019. As per the World Bank
declared the outbreak of a new coronavirus disease in
report, Sri Lanka economy is expected to grow 2.7 percent
Hubei Province, China to be a Public Health Emergency of
this year as many important economic sectors show relatively
International Concern. WHO stated there is a high risk of the
weak performance. However, the World Bank mentions that
coronavirus disease (COVID-19) spreading to other countries
in the medium-term, the economy is expected to recover
around the world. WHO and public health authorities around
from the disruptions in 2019, and growth to accelerate
the world are taking action to contain the COVID-19 outbreak.
towards 4.0 percent, gradually closing the output gap. Even
However, long term success cannot be taken for granted. All
in the years immediately preceding 2019, economic growth
sections of our society – including businesses and employers –
was sluggish, with the country failing to maintain the high
must play a role if we are to stop the spread of this disease.
growth momentum observed in the immediate aftermath of
Amidst varied challenges on both domestic and global fronts,
the end of the internal conflict. Policy uncertainty led to weak
the Central Bank continued to conduct monetary policy in an
investor confidence and low levels of investment. Recurring
increasingly forward looking manner using an evidence based
natural disasters worsened conditions. The inability to address
approach with a view to maintaining inflation at low and
structural issues leading to a weak production economy, has
stable levels over the medium term and anchoring inflation
caused this persistent slowdown. However, Central Bank of
expectations at such levels.
Sri Lanka expects to formulate policies that will support a

45
Exports of goods and services as percent Interest rates

of GDP The Monetary Board of the Central Bank of Sri Lanka, at its
As stated in the data provided by the World Bank from 1960 meeting held on January 29, 2020 decided to reduce interest
to 2018, the average export value as a percentage of GDP for rates by 50 basis points in a bid to stimulate the economy and
Sri Lanka was 27.85 percent with a minimum of 18.39 percent encourage economic activity. It was decided to reduce the
in 1969 and a maximum of 39.02 percent in 2000. The latest Standing Deposit Facility Rate (SDFR) and the Standing Lending
value from 2018 is 22.78 percent. For comparison, the world Facility Rate (SLFR) of the Central Bank by 50 basis points to
average in 2018 based on 161 countries is 44.82 percent. 6.50 per cent and 7.50 per cent, respectively. The Board has
arrived at this decision following a careful analysis of current
Exchange rates and expected developments in the domestic economy and the
financial market as well as the global economy. This decision
Average Exchange Rate - US$ to LKR (2019/20)
supports a continued reduction in market lending rates, thereby
190.00
facilitating the envisaged recovery in economic activity given
185.00 the favourable medium term outlook for inflation, which is well
180.00 secured within the 4-6 per cent range. Samson International Plc
Ex.Rate
pays interest for packing credit loans at 5.4% ( LIBOR+3.5%)

175.00
and overdraft at 10.5% with a gearing of 31%.
170.00
165.00 Sri Lanka Government debt as a

Month
percentage of GDP
During the ten-year period from 2004 to 2014, the government
Average Exchange Rate - EUR to LKR (2019/20) debt as a percentage of GDP declined from 102% to 71%.
206.00 During this period, foreign debts reduced from 48% to 30%.
204.00 However, subsequent five year period ended 2019, this went
202.00
up to 85% of the GDP. The foreign debts in this period went
200.00
up from 30% to 42%. During the last five year period, there
Ex.Rate
198.00
was no significant change in domestic debts.
196.00
194.00
192.00 Sri Lanka government debt as % of GDP

Month
During the year, rupee has been slightly depreciated against

both US dollar and Euro. The Euro has depreciated by 2.6%
from Rs. 196.33 in April 2019 to Rs. 201.50 in March 2020.
Since most of our exports go to Europe, we receive our
proceeds in Euro terms and the slight depreciation of rupee
against Euro has made a positive impact on us. On the other
hand, US dollar rate has gone up by 4% from Rs. 174.75
in April 2019 to Rs. 181.55 in March 2020 which gives us a
Sri Lanka Economic Outlook for next year
As stated in the forecast given in the trading economic prior to
negative impact on cash flows as we have to pay for the raw
the Corona outbreak, Sri Lanka will get the following economic
material imports in dollar terms and obtain packing credit loans
projections. As per their forecast, the Dollar will appreciate by
in US dollars. At the end of the year, this currency depreciation
1% and will stand at Rs. 187 in 2021. The unemployment rate,
has given us a net impact Rs. 6.8 Mn foreign exchange loss.
Inflation rate and interest rate will decline. The stock market
position will remain at the same level.

46
Markets 2020 Q1 Q2 Q3 Q4 2021
Currency - USD 184.80 185 185 186 186 187
Stock Market (points) 4874.73 5261 5180 5100 5021 4864
GDP Annual Growth Rate (%) 2.70 3.5 3.1 3.9 3.8 4
Unemployment Rate (%) 5.10 4.3 4.6 4.6 4.6 4.6
Inflation Rate (%) 6.20 6.9 4.6 4.7 4.7 4.7
Interest Rate (%) 6.25 6.25 6 6 6 6
Balance of Trade (USD Million) -784.30 -910 -500 -450 -820 -820
Current Account (USD Million) -522.26 -650 -900 -850 -810 -810
Current Account to GDP (%) -3.00 -2.5 -2.5 -2.5 -2.5 -2.2
Government Debt to GDP (%) 82.90 72 72 72 72 70
Government Budget (% of GDP) -5.30 -5.5 -5.5 -5.5 -5.5 -4.5
Corporate Tax Rate (%) 28.00 28 28 28 28 28
Personal Income Tax Rate (%) 24.00 24 24 24 24 24
Source: Trading Economics.com

47
Overview
of Rubber Industry
“Sri Lanka’s natural rubber has a high- 1. Due to the disruption from the corona virus, the rubber
consumption in China would dramatically drop in the
demand in the world market due to its unique
next six months. As a result, the consumption from Asia-
properties …” Pacific region will decrease significantly from the current
consumption level of 10,000 metric tons. Please see the
Global Rubber Consumption Table given on page 49.
W orld demand for rubber had estimated to have fallen 2. We could also expect some decline in the consumption
1.5 percent year-on-year in 2019 to 28.7 million metric in the Europe region, especially Italy due to the
tons as per the figures from the International Rubber Study disruption from the corona virus.
Group show published prior to the Corona outbreak. Further,
global synthetic rubber demand increased by 1.5 percent in 3. Since the demand for natural rubber declines, the
2018 to 15.4 million tons. The market, however, was expected rubber prices may not go up in the international market.
to decline by 2.8 percent in 2019, reaching 14.98 million tons, 90% of the rubber production is given by Asia-Pacific
region.
before registering growth of 3.4 percent in 2020.
4. In the past, synthetic rubber production is little greater

The world largest top three natural rubber consuming countries
than the natural rubber production volume. Due to the
are China (40% or 5.5 million metric tons), India ( 9% or 1.2
drop in demand in the China consumption for natural
million metric tons) and USA (7% or 1.0 million metric tons).
rubber, the price of the synthetic rubber would also
Sri Lanka consumes 1% of the world consumption which
adversely affect to the producers.
is around 135,000 metric tons. Samson International Plc
consumes 1,500 metric tons which is 1.1% consumption of the 5. As shown in the Rubber Prices and Related Indicators
country. Table, it is noted that the rubber prices have declined
marginally in general. Relative NR/SR Price Ratio has
Similarly top three natural rubber producers in the world are dropped from 68.4% in 2018 to 49% in the 4th quarter
Thailand (37% or 5.2 million metric tons), Indonesia (25% or of 2019.
3.5 million metric tons) and Vietnam (8% or 1 million metric
tons). Sri Lanka produces 0.6% of the world production which
is around 81,000 metric tons.
Some of the projections and observations given prior to the

Corona outbreak, in the Statistical Summary of World Rubber
Situation for the coming years (which are important to our
industry) are given below.

48
Overview of Rubber Industry (Contd...)
Statistical Summary of World Rubber Situation

(’000 tonnes)
2017 2018 2019
Year Q1 Q2 Q3 Q4 Year Q1 Q2
NATURAL RUBBER PRODUCTION
Asia – pacific 12352 2888 2899 3401 3467 12655 2864 2749
Europe, Middle-East and Africa 867 196 209 252 243 901 208 242
Americas 332 87 98 70 77 332 87 95
TOTAL 13551 3170 3206 3724 3787 13887 3160 3086
NATURAL RUBBER CONSUMPTION

Asia-Pacific 9763 2478 2575 2578 2608 10239 2503 2588
Americas 1713 453 474 409 421 1755 460 466
TOTAL 13203 3376 3514 3418 3456 13764 3401 3508
WORLD NR SUPPLY-DEMAND SURPLUS/DEFICIT 348 -206 -309 306 332 123 -241 -422
SYNTHETIC RUBBER PRODUCTION

Asia-Pacific 8045 2030 2012 2058 2184 8284 2099 2060
Americas 2990 746 655 711 724 2836 735 647
TOTAL 15108 3881 3715 3756 3900 15252 3873 3695
SYNTHETIC RUBBER CONSUMPTION

Asia-Pacific 8399 2115 2092 2181 2200 8588 2098 2080
Americas 3004 755 696 741 753 2945 795 716
TOTAL 15234 3898 3798 3848 3879 15422 3887 3734

WORLD SR SUPPLY-DEMAND SURPLUS/DEFICIT -126 -17 -82 -92 21 -170 -14 -40
% SR IN TOTAL RUBBER CONSUMPTION 53.6 53.6 51.9 53.0 52.9 52.8 53.3 51.6

49
Rubber Price and Related Indicators
2017 2018
2019
Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4
NATURAL RUBBER PRICE
SGX,RSS3, US$/tonne 2000 1723 1638 1457 1394 1533 1723 1633 1825 1605
SGX,TSR20, US$/tonne 1651 1468 1397 1332 1265 1651 1365 1375 1514 1349
Europe, TSR 20, US$/tonne 1728 1529 1470 1408 1384 1728 1448 1490 1571 1434
SYNTHETIC RUBBER PRICE

Japan, SBR Export value ‘000 yen/tonne 263 245 258 275 289 263 267 245 234 223
France, SBR Export Value /tonne1264 1944 1800 1985 1871 1924 1944 1895 1778 1759 1776
USA,SBR Export value US$/tonne 2415 2242 2588 2748 2653 2415 2558 2243 2590 2753
RELETIVE NR/SR PRICE RATIO

SGX,TSR20 Spot/USA SBR Export Unit Value 68.4 65.5 54.0 48.5 47.7 68.4 53.4 61.3 58.5 49.0
RETAILED INDICATORS
Brent Crude Oil, US$ per barrel 54.2 66.8 74.5 75.2 67.7 54.2 71.1 63.2 68.9 61.9
Butadiene, US cents per lb (2) 62.2 48.4 68.0 71.9 61.6 62.2 62.5 49.5 48.2 41.0
Source: ANRPC
Sri Lankan Rubber Industry result increase in cost of production for the rubber plantation
Sri Lanka’s rubber industry is positioned as the fourth largest companies.
source of foreign exchange for the country accounting for

approximately 8 percent of export income whilst Samson Sri Lanka has a well-established natural rubber industry with
International Plc earns more than Rs. 600 Mn per year from a well-organized infrastructure comprising of all supporting
exports of rubber- related products such as sealing rings, hot institutes in public and private sector. Rubber Research Institute
water bottles and mats & floorings etc. (RRI) of Sri Lanka is one of the oldest research institutes for
rubber in the world. Sri Lankan rubber sector provides over
The rubber industry in Sri Lanka began way back in 1876. 300,000 direct and indirect job opportunities to Sri Lankans
The country lured traders and colonizers from the west which across various professions and walks of life. The traditional
resulted in the Portuguese, the Dutch and the British governing rubber growing areas of Sri Lanka is located mainly in the
the island for over 150 years from the 16th century. The natural wet zone in a land extent of 136,000 hectares. The country’s
rubber industry in Sri Lanka is one of the enduring colonial traditional rubber growing districts include Colombo,
legacies that is providing sustained socioeconomic benefits Gampaha, Kalutara, Kandy, Matale, Galle, Matara, Kurunegala,
to the country, even today. This is an industry with significant Rathnapura, and Kegalle. A rubber tree has an economical life
strategic importance to Sri Lankan economy since its origin. of about 25 – 30 years, while harvesting commences at about
The rubber industry generates a vast number of employment 7 years from planting.
opportunities for people mainly from rural areas and is

providing them with economic sustenance for their livelihood. Sri Lanka exports almost all types of natural rubber available
President Gotabhaya Rajapakse’s government wanted the in the market including ribbed smoked sheet rubber, latex
minimum daily wage of tea plantation workers increased to crepe rubber, scrap crepe, all grades of technically specified
1,000 rupees ($US5.50), starting on March 1 2020. This might rubber, centrifuged latex and specialty rubbers. Presently, Sri
be extended to rubber plantation workers as well. This would Lanka produces around 81,000 metric tons of natural rubber

50
annually. Sri Lanka prides itself in manufacturing a number premium quality natural rubber type known as Lankaprene
of value added rubber products by processing raw rubber. which is odour free to a certain extent, light coloured, and
These products include extrusion products like rubber bands, clean which is ideally suited for medical equipment and up-
beadings, rubber latex products such as medical, industrial and market value added products. The competent workforce with
household gloves, industrial products like hose, auto parts, right attitudes and training will be more productive resulting
industrial components, tyres, tubes, automotive and aviation enhanced earnings and lower turnover making the rubber
tyres and general rubber products like rubber flooring, floor industry more attractive for employment. The rubber sector
mats, carpets, sports goods, footwear, hot water bottles and needs more investments, private and public, foreign and
related components. DSI Group and Samson International Plc local, and thereby common industry infrastructure facilities
produces most of these products. will improve. Collaboration among industry players in pre-
competitive areas will lead to synergistic effects in industry
Sri Lanka’s natural rubber has a high-demand in the world operations.
market due to its unique properties. The country now has a
Progressive Performance and projected outputs (Raw Rubber) - up to 2024
Indicator Unit 2013 2019 2024 CAGR %

(Baseline)
UPSTREAM
1. Total Rubber Extent Ha 132,000 150,500 169,000 2
2. Mature Rubber Extent Ha 105,000 97,930 97,000 -1
3. Average Rubber Yield Kg/Ha 1,043 1,042 1,042 0
4. Raw Rubber Production ( Projections at 4% ARP) MT 110,000 102,000 101,070 -1
5. Raw Rubber Export MT 23,585 18,000 15,570 -4
6. Local Raw Rubber Internal Consumption MT 86,415 84,000 85,500 0
7. Value of Locally Consumed Local Rubber $M 243 273 318 3
8. Export Income from Raw Rubber $M 71 63 64 -1
9. Total Value of Raw Rubber Produced $M 314 336 382 2
IMPORTS
10. Raw Natural Rubber MT 9,900 55,000 65,000 21
11. Synthetic Rubber (40% for rubber products) MT 14,355 23,000 69,000 17
12. Semi-Processed Rubber ( 20% of gross weight) MT 5,224 6,000 7,000 3
DOWNSTREAM
13. Total quantity of Rubber(NR+SR) Consumed MT 115,894 168,000 226,500 7
14. Rubber Products value of exports $M 889 1700 3000 13
15. Rubber Products value of local sales $M 195 240 300 4
16. Rubber products – Aggregate Turnover $M 1,084 1,940 3300 12
17. Value of rubber wood based products sold $M 80 157 289 14
18. Total Industry Turn over $M 1,4878 2,433 3,971 10
LOCAL MARKET FOR PRODUCTS

19. Value of rubber products imported $M 118 250 275 9
20. Local market for rubber products $M 313 490 575 6
51
Rubber Prices It is noted that the rubber graph for 2019 had an upward
Around 60% of the total raw material cost of our products trend while the same for the 2018 had a downward line. In the
come from rubber. Therefore we always monitor rubber prices. 38th week ( Mid of October ) of 2019, the rubber price started
There are fluctuations in rubber prices due to the changes in increasing above the rubber prices of 2018. The pale crepe
price at the end of March in 2018 and 2019 are Rs. 253 and
crude oil prices which pushup the synthetic rubber. If the crude Rs. 344 respectively. This is an increase of Rs. 91 or USD 0.5 per
oil prices goes up, the demand for natural rubber is expected Kg. Please see the rubber graph given below.
to grow as China and other major consuming countries are

expected to begin limiting synthetic rubber imports and instead
opt to source natural rubber for their end products. However,
during the next six months the situation might change due to
the disruption from the corona virus in china. The rubber prices
could also change from time to time depending on the weather
pattern in Sri Lanka and other competing countries.
Latex Crepe Rubber Price Weekly Trend 2018 ~ 2019

rd
rd
rd
th
th
th
th
th
th
th
th
th
th
th
th
th
h
st
st
st
st
d
t
t
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
3r
11
1s
5t
7t
9t
500
480
460 2018
440 2019
420
400
Price in LKR / Kg
380
360
340
320
300
280
260
240
220
200

52
Review
of Operating Environment
“We consistently review and follow the Greenhouse Gas Assertion ISO 14064-1:2006 certification from
National Cleaner Production Center Sri Lanka for the first time.
Environmental Compliance, Sustainability,
At present we have the following certifications:
Carbon Footprints and Renewable Energy • REACH Certificates for the chemicals we use
Sources …” • BSCI Certification on such social responsibility
practices
• ISO 14001 for Environment Management System
O ur main rubber factory is located in the city of Galle and • ISO 50001 for Energy Management System
the other rubber factory is in Kalutara. The PVC factory • ISO 9001:2015 Quality Management System for
is in Baddegama. All these factories are within 15 Kilometers Rubber & PVC products
from the Southern highway express which is now connected • FSC Certification for Forest Stewardship Council -
from Mattala to Katunayaka airports. The seaside town of Chain of Custody
Galle is 116 Km away from Colombo by road or rail, down the • British Standard ( BS 1970:2012) for hot water bottles
south coast of Sri Lanka. Anyone can also take the Southern • TUV Certification for hot water bottles
Expressway to reach the city of Galle by one and half hours • SGS test reports for jar sealing rings according to
from Colombo. German and French standards
• SATRA, UK Certificate for fire retardant mats
Since we are operating in the international market and some • SATRA, UK Certificate for fire retardant floorings
of the products are related to food grade, the operating • Electrical Resistant Certificates from Universities
environment is paramount important. In fact some of our
buyers send their audit teams annually to verify our operating During the year under review,
environment before placing their orders to us. Therefore in • There was no significant fine for non-compliance with
order to meet the expected environmental objectives, our laws and regulations.
factories focus in the areas of Environmental Compliance, • There was no significant fine the Company paid for
Sustainability, Carbon Footprints and Renewable Energy non-compliance with laws and regulations concerning
Sources. the provision and use of products and services.
• The Company has not paid significant fine for non-
Environmental Compliance compliance with environment laws and regulations.
We are adhering to all regulatory compliances, standards and • Further, there was no incident of non-compliance
environmental laws. Our measures to follow these standards with regulations and voluntary codes concerning
and social compliances, in-house and overseas laboratory marketing communication including advertising and
tests are continuously carried out in order to retain/ grow our promotion.
market share for our products. During the year, we obtained
Company has not paid significant fine for non-compliance

with laws and regulations for the use of products and
environmental & marketing communications matters
53
Review of Operating Environment (Contd...)
The following are some of the Acts we use frequently and complied with:
Business-related Labour-related Tax -Related Accounts and Other

Acts Acts Acts Finance-related Acts Acts
1 Companies Act, Factory Ordinance, Inland Revenue Sri Lanka Accounting Securities and Exchange
7 of 2007 No 45 of 1942 Act, No.10 of 2006 and Auditing Standards Commission of Sri Lanka
and No. 24 of 2017 of 1995 Act, No. 36 of 1987.

2 Environmental Wages Board Value Added Tax Bills of Exchange Civil Procedure
Act, No 47 of 1980 Ordinance, Act, No 14 of 2002 ordinance No 25 Code of 1978
No 27 of 1941 and of 1927
Wage Board No. 36.
3 Imports and Exports Employment Provident Nation Building Prescription Ordinance, Rules of Colombo Stock
(Control) Act, No 1 Fund Act, No 15 Tax Act No. 9 No 22 of 1871 Exchange on Corporate
of 1969 of 1958 of 2009 Governance
4 Exchange Control Employees’ Trust Economic Service Stamp Duty Electronic Transactions
Act, No. 24 of 1953 Fund Act, No. 46 charge Act No. 13 (Special Provisions) Act, No 19 of 2006
of 1980 of 2006 Act No.12 of 2006

5 Consumer Affairs Payment of Gratuity Customs Act , No 9 Notaries Ordinance
Authority Act, No 9 Act. No 12 of 1983 of 2013 of 1986
of 2003
6 Intellectual Property Industrial Dispute Evidence Ordinance,

Act, No 36 of 2003 Act, No 43 of 1950 No 14 of 1895
7 Industrial Promotion Employment of Sri Lanka Constitution of

Act, No 46 of 1990. Women, Young Persons 1978, especially
and Children Act, Fundamental Rights.
No 47 of 1956
8 Sri Lanka Standards Maternity Benefits Prevention of Mosquito

Institution Act Ordinance, No 35 Breeding Act, 11 of 2007
(No. 6 of 1984) of 1946

9 Sale of Goods Shop and Office
Ordinance, No 11 Employees Act,
of 1896 No 19 of 1954

54
Review of Operating Environment (Contd...)
Sustainability
Sustainability focuses on meeting the needs of the present
without compromising the ability of future generations to
meet their needs. The concept of sustainability is composed
of three pillars: economic, social and environmental and also
known informally as profits, people and planet. In this regard,
our practice is the creation and maintaining the conditions on
humans and nature that lead to exist in productive harmony.
We will achieve this through the aspirational goals of creating
zero waste (Through - Reduce, Reuse, Recycle ) and by selling
products that sustain our resources and the environment. At
present our rubber and PVC waste is less than 1% and we
all our rubber waste is recycled and given to another sister
company to manufacture reclaimed rubber products. PVC
waste is re-used to produce non-pressure pipes. Solid waste
generated from our operations are segregated and disposed Samson International Plc planted more than 500 timber trees
inside and outside the factory premises on 14th October 2018
with minimal environmental damage. A water purification
at our 30th anniversary of the Company. We also invested in
system has been installed and our factory noise level are within
a modern and environment friendly generator for the Galle
the industry & regulatory norms. Samson International Plc
factory. The Company has the own paddy field and its harvest
produces many products under Forest stewardship Council
is distributed among the villagers.
(FSC). These are Hot water bottles, V-Straps, soles, Jar sealing
rings and Seed trays which are exported to European market
Renewable Energy Sources
every year. We conduct a sustainable business, or a green
We obtained ISO 50001 – Energy management system. We
business, that has minimal negative impact on the global or
often conduct training programmes for our employees on
local environment, society, or economy and we strives to meet
effective electricity consumption and educate risk prevention.
the triple bottom line objectives of social, environmental/ We are in the process of to use energy from solar for some of
ecological and financial. our production and administrative purposes.
Carbon Footprints Energy consumption

We focus on reducing their carbon footprint for social and
Unit 2019/20 2018/19
financial reasons. A carbon footprint means that total emissions
Non-renewable sources
caused by an individual, event, organization, or product,
Furnace oil Litres 338,600 353,800
expressed as carbon dioxide equivalent. During the year
Diesel Litres 10,641 12,213
we obtained Greenhouse Gas Assertion ISO 14064-1:2006
Renewable sources
certification from National Cleaner Production Center Sri Lanka
Electricity from CEB kwh 2,027,118 1,746,498
for the first time. We hope to have a continues improvement
in this area and have plained to invest much in the future. The
In conclusion, review of operating environment is extremely
certificate we received is given below. Since we are dealing
important as Sri Lanka as well as Samson International Plc
with export business we pay much focus on caron footprints
exports our products mostly to the advanced countries than
and other envirmental aspects.
the developing countries. The advanced countries expect
more stringent quality, regulatory compliances, standards and
environmental laws. Further, Corona virus has disrupted the
global supply chain and it is a scale beyond either SARS in
China, floods in Thailand or the earthquakes in Japan.

55
Value
Creation and Stakeholder Engagement
T here are two product segments in the Company namely rubber segment and the PVC segment. The revenue generated from
these segments is shown in the revenue distribution diagram below.
Company revenue distribution diagram
Vision & Mission
Socio-Economic National & Religious Protection of Disciplined Human

Development Heritage Environment Resource
Revenue from Products of

the Company
Rubber Segment PVC Segment
Hot water bottles, Sealing Rings, Pressure Pipes, Non- Pressure Pipes,
Mats & Floorings and Fittings, Solvent, Hose, Casing,
Other Rubber Products Gutters
Spending on Support Services
Marketing, R & D, Operations,

HR, Finance, Engineering,
Welfare
Distribution of Value Added
Employees as Government as Shareholders as Lenders as Society in CSR

Investments
remuneration Taxation dividend interest projects
Statement of Value Added and distributed

The Company has been doing value additions continuously since its inception (1988). The Company generated a value addition of
Rs. 398 Mn during the year against Rs. 390 Mn in 2018/19 which was shared with the various stakeholders with a portion retained
within the Company. The value addition per employee per month in the current year decreased by 7%from Rs. 78,591 in the
previous year to Rs 72,831 in the current year.

56
Value Creation and Stakeholder Engagement (Contd...)
2019/20 2018/19 Decreased by
Value addition per employee per month – Rs 72,831 78,591 7%
Value additions increased by 2% in the current year and 75% of the total value additions was distributed to employees.
Statement of value added and distributed

2019/20 2018/19
Rs.’000 % Rs.’000 %
Turnover 1,590,203 100 1,569,345 100
Less: Cost of materials and services purchased 1,191,671 (75) 1,178,904 (75)
Total Value additions 398,532 25 390,441 25
Value Distributed
2019/20 2018/19
Rs.’000 % Rs.’000 %
To Employees as remuneration and welfare 297,439 75 270,529 69
To the Government as taxation (225) (0) 18,627 5
To the Shareholders as dividend 8,465 2 5,291 1
To lenders of capital as interest 22,347 6 17,425 4
To retain in the business - as depreciation 57,768 14 54,380 14
As retained profits 12,738 3 24,189 6
398,532 100 390,441 100
Stakeholder Engagement
We have created more channels to interact with below external and internal stakeholders to obtain their feedback which create
a strong relationship and form the foundation to our sustainability journey. The Company firmly believes a sustainable business
platform cannot be achieved in isolation. Therefore our strategy development process and implementations take into account the
material issues of our stakeholders. As a result we carry out a constructive dialogue and other engagements with all stakeholders as
described below.
External Stakeholders Internal Stakeholders
Shareholders Employees
Neighbouring Communities Sister Companies
Government & industrial regulatory bodies
Customers
Suppliers & Financial institutions
Associations and Certification bodies

57
Stakeholder Key issues/concerns Process of engagement Frequency of engagement
Shareholders • Profit and dividend rate • Annual general meeting • Annually

• Sales growth • Annual report • Annually
• Sustainability and CSR • Interim financial statements • Quarterly
• corporate governance • Press release
• Open-door policy
Neighbouring Communities • Pollution free environment • Internal investment • Continuously

• Job opportunities • Social gathering • Regularly
• Up-lifting living standard • CSR • Regularly
• Effective waste management • Recycling • Continuously

Government & industrial • Statutory compliances • Committee meetings • Quarterly
regulatory bodies • Timely information • One –to – one Communication • Regularly
• Regular visits • Regularly
Customers • Product Quality

• Compliance with local and Exhibitions, Trade association,
international standards and Advertisement, Customer Regularly
regulations visits and One – to – one
• Price communication
• On time delivery
Suppliers • Prompt payment Supplier meetings, Supplier

Regularly and
• Continuous orders service evaluations, Supplier
Monthly
• Price revisions registrations, Supplier audits
Employees • Remuneration
• Profit and growth Open- door policy,Joint
• Occupational health and safety consultative committee,
Regularly and
• Career stability and advancement Regular dialogues,
Monthly
• Welfare and sports activities Training programmes
• Career advancement and HR cluster meetings
• Good working condition
Sister Companies • Good relationship Social gathering and

• Mutual understanding and trust participation of Company Regularly and
• Knowledge sharing events, Group meetings, Monthly
Group journals,

58
The above one-to-one communication with neighbouring Needs and expectations of the employees can be identified
communities arises at the distribution of rice ceremony and through suggestion box, join consultative committee, attitude
timber trees, attending atavisi Bodhi pooja by all employees, surveys, group newsletters and information obtained with
pirith ceremony, helping funeral houses, university students, regard to number of grievances complaints, number of cases
schools & temples in the village and interact with each other on in labour tribunals, labour courts and arbitration, employee
a personal level. Such events give an opening to us to mix and turnover rates, exit interviews, number of accidents, rate of
get to know each villager and create better relationships. absenteeism, and quality of production and services.
The government departments/regulators includes Environment
Authority, Health department, labour department, Water
Boards to obtain reports, advice & organize training programs
from time to time.

59
Goals
and Strategies
W e formulate our three year’s Strategic plan and revise In order to achieve our vision and mission, we have planned
it annually before the commencement of a financial to achieve all functional objectives such as finance, customer,
year. This strategic plan covers with the critical success internal business process and learning & growth. We believe
factors and a SWOT analysis, Business performance Analysis that just achieving our objectives in one function is not
and PEST analysis. In this planning session, we set priorities, adequate to run the business in the long term. We also need to
strengthen operations, focus energy & other resources to suitably balance all four functions simultaneously. For example,
ensure that employees and other stakeholders are working while achieving financial returns we also need to look at the
toward common goals, establish agreement around intended customers’ perspective, factory development and investment in
outcomes/results, and assess, and adjust the organization’s human resource.
direction (Mission and Objectives) in response to a changing
environment.

60
Goals and Strategies (Contd...)
Business Performance Analysis 3. Adverse climate changes

Key Strengths 4. Environmental pollution issues
1. Wide product range 5. Shortage of skilled workers
2. Strong, loyal and old customer base 6. Inability to increase selling prices immediately
3. Being in the business for the last 31 years corresponding to increases in raw material prices
4. Low cost dollar borrowing facilities 7. Unpredictable global virus issues
5. ISO certified since 1994 to date
6. Support from other sister Companies Key Opportunities
1. New market for USA, South America and Japan
Key Challenges 2. Potential for jar sealing rings and yoga mat market
1. Low-cost manufacturers from India, China and 3. Investing for a roto cure to produce continues sheets.
Indonesia who are penetrating our low- end 4. Gaining Chinese markets due to their supply shortage.
products.
2. Unpredictable raw material prices ( especially rubber, Material Issues
resin ) and exchange rates During the strategic planning meetings, the followings were
identified as material issues for the Company.

61
Material Aspects Extend of impact or Aspect Boundary

Significance
Rubber prices Critical External
Skill labours Critical External
Exchange rate Critical External
Product mix Critical Internal
Weather Critical External
Wastage percentage High Impact Internal
Trainings High Impact Internal
Economic performance High Impact External
Energy High Impact Internal and External
Imported raw material prices High Impact External
Labour/ management relationship High Impact Internal
Promotions and communication High Impact Internal
Customer loyalty High Impact External
Water Moderate Impact Internal
Transport Moderate Impact Internal
Community relationship Moderate Impact External
Global Virus issu High Impact Internal and External
Strategies
Our short and medium- term growth strategies focus on a mix Long-term Goals
of market penetration, market development, and new product 1. Establish a direct market presence in more than 50 countries.
2. Design and manufacture of new products for the global
development on routine basis. Over the next three years, we
market
plan to target new export markets and new demographic
3. Achieve the market leadership in our PVC products lines
segments for growth, supported by attractive new products.
4. Reach our revenue and profit at a rate more than current
We look at the diversification strategy whenever an opportunity
industrial norm.
arises. In the meantime we impose stringent cost control in all 5. Attain forward and backward integration through takeovers
our activities. and acquisitions.
6. Strive for the uplifting of our community whilst adhering to
high ethical standard in business.

62
Objectives and Strategies set in 2019/20
Plans for 2019/20 Strategy
1 The Company makes every effort to introduce our products to Market developments
markets such as the South Africa, USA, Japan and Middle –East.
2 To reach break-even in the PVC segment Prevent operational risk
3 Where possible, forward exchange contracts are entered into Minimize the exchange loss risk
for minimizing the exchange risk.
4 The Company continuously invests in Research and Product developments

Development activities
5 Wherever possible, we hire employees from sister Companies Minimize the Operational risk
to cover the temporary labour shortages
6 The Company continuously carries out environmental audits Minimize the Operational risk
and invests in CSR activities
7 Company will develop five new products Product developments
8 Develop our brands to be perceived as high quality products to Market penetration

maintain a competitive advantage
9 Participate all possible exhibitions in overseas and locally Market developments
10 Upgrade the JSR packing room Enhance efficiency
11 We will invest in modern machinery with high productivity and Product developments and Cost reduction
plan to invest in a Kneader next year.
Objectives set in 2018/19 and extend of achievements :
Objective set in 2018/19 Extend of Achievement
1 Exploit five new markets in Middle East, Found five countries.

South America and USA Hot Water Bottle in Korea, Industrial plug in New
Zealand, Root trainers in German, Lid seal in German
and Gutters in local market
2 Discontinue PVC business if we cannot run at a profit We run at a profit in 2020/21
3 Minimize exchange losses Achieved to a great extent
4 Strengthens the R & D department Done
5 Hire sister company employees for temporary

labour shortages Done
6 Carry out environmental audits and investing in

CSR activities Done
7 Invest in a banbury Not yet done
8 Construct a new warehouse Construction began in July 2020
9 Develop our brand name Done
10 Participate all leading exhibitions Done

63
Financial
Capital
31% Rs. 7 Mn Rs. 17 Mn 2 times

Gearing Exchange loss Interest cost Interest cover
Receiving Annual Report Gold Award

last quarter. Out of the total revenue of Rs 1,590 Mn for the
“We will maintain a healthy financial position year ended 31st March 2020, 58% was earned from local
with a consistent asset growth, low gearing sales and the balance 42% was from export sales. Local sales
went up by Rs 98 Mn from Rs. 817 Mn in the previous year to
level and strong base of reserves”
Rs. 915 Mn in the current year. Local sales have been growing
tremendously after the Company stepped into the PVC
1) Yearly
business. In local rubber sales, it is noted that sale of v-straps
Performance Revenue has gone up significantly in the current financial year.
T he Company recorded a turnover of Rs. 1,590 Mn in the However, there is a 10% drop in export sales compared with
current year as against Rs.1,569 Mn in the previous year. the previous financial year. The highest contribution for this
drop is coming from Jar sealing rings and hot water bottles
The growth in turnover of the Company in the year was 1.3%. which is due to the adverse impact occurred in the European
The main reason for the low turnover growth rate is due to market from Coronavirus. We are formulating new strategies to
the adverse impact from the outbreak of Coronavirus in the capture new export markets for our other products.
64
Financial Capital (Contd...)
Revenue - Rs.000 Operational Profit
(Profit before finance cost) Rs. Mn
Total Revenue Rs.000

1,000,000
Export/Local Revenue Rs.000
2,000,000
800,000 1,500,000 72.31
80.00
71.5
600,000 70.00
1,000,000 60.00
400,000
50.00
Rs.Mn
200,000 500,000 40.72 34.1
40.00
- - 30.00
20.00 11.3
2015/16 2016/17 2017/18 2018/19 2019/20
10.00
Year -
2015/16 2016/17 2017/18 2018/19 2019/20
Exports Local Sales Total Restated
Year
Profit / (Loss) before Taxation

% of Export Sales and Local Sales
Last Five Years The profit before taxation in the current year is Rs. 12.1 Mn
as compared to Rs. 43.6 Mn in the previous year. The finance
100% cost decreased by Rs. 5.3 Mn from Rs. 34.5 Mn in the previous
41% 49% 54% 52% 58%
year to Rs. 29.2 Mn in the current year due to the decrease of
50%
59% 51% 46% 48%
%
42% exchange loss. The exchange loss for the year is Rs. 6.8 Mn as
0%
2015/16 2016/17 2017/18 2018/19 2019/20 against of Rs. 17 Mn in the previous year. The interest cover is 2
Year
times in the year under review.
Exports Local Sales
Exchange Gain / (Loss)

Rs. Mn
Gross Profit Margin
The Company has recorded a gross profit of Rs. 289.9 Mn as 25.00
21.66
20.00
against Rs. 307.5 Mn in the previous year. The Gross Profit 15.00
10.00
Ratio in the current year is 18.2% which was 19.6% in
Rs.Mn
5.00 3.48
- (0.09)
previous year. The main reason for the decrease in gross profit (5.00) 2015/16 2016/17 2017/18 2018/19 2019/20
(6.80)
ratio was the drop in sale of jar sealing ring which gives one of (10.00)
(15.00) (17.06)
the highest contributions among other products. (20.00)
Year
Operational Profit The Company obtained Rs. 25 Mn of a working capital loan

(Profit before Finance cost) from DFCC Bank under Sawbhagya loan scheme at the
The Operational profit in the current financial year is Rs. 34.1 concessionary interest rate of 4%.
Mn as against Rs. 71.5 Mn in the previous year. We have
incurred Rs. 68.6 Mn for the selling and distribution cost in the The Company continues to maintain a clear and coherent
current year as against Rs.65.5 Mn in the previous year. The approach to hedging which is carried out with pre-
main reason for the increase in selling and distribution cost approved financial institutions. Our company enter into such
is the increase in transportation cost and sales commissions arrangements only with financial institutions we believe that
which are directly related to the sales growth in PVC. The they are able to perform their obligations over the entire tenor
Administrative overhead cost was Rs. 190.9 Mn during the of our economic exposure.
year under review as against Rs 176.6 Mn in the previous year.
This is mainly due to the reallocation of director fees and the Taxation
increase in salaries & wages and training cost of the employees. There is a tax gain during the year mainly due to the deferred
tax adjustment. The corporate tax rate decreased from 28% to
24% with effect from 01st January 2020.

65
2018/19 2018/19 Profit for the Year (after tax)
(Rs. Mn)
Tax on profit of the year 11,190,063 4,930,128
60.00
55.15
Deferred tax expense/(Income) (11,414,959) 13,697,264
50.00
Total (224,896) 18,627,392 42.90
40.00
30.00
Rs.Mn
Tax on Profit 25
(Rs.) 20.00
12.3
11,190,063 10.00
12,000,000 0.16
-
10,000,000 2015/16 2016/17 2017/18 2018/19 2019/20
8,331,628 Restated
8,000,000
Year
Rs.Mn
6,000,000
4,930,128
3,360,660
4,000,000 Total Comprehensive Income
2,000,000 The total comprehensive income for the year is Rs. 12.7 Mn.
445,721
- This total comprehensive income includes the actuarial gain on
2015/16 2016/17 2017/18 2018/19 2019/20
Year post-employment benefit liability of Rs. 0.5 Mn and deferred
tax on actuarial gain of Rs. 0.1 Mn in the current financial year.
Deferred Tax Expense / (Income)(Rs.) The total comprehensive income for the previous year is Rs.
20,000,000 24.2 Mn.
14,742,038 13,697,264
15,000,000
7,679,335
Total Comprehensive Income
10,000,000
(Rs.Mn)
5,000,000
Rs.Mn
791,536
60.00
- 51.04
2015/16 2016/17 2017/18 2018/19 2019/20
(5,000,000) 50.00
43.73
(10,000,000) 40.00
(15,000,000) (11,414,959)
Rs.Mn
30.00
Year 24.2
20.00
12.7
The effective tax rate in the current financial year is 27%. (Refer 10.00
1.47
Note 10 of the Financial Statements for a detailed explanation). -
2015/16 2016/17 2017/18 2018/19 2019/20
Restated
Year
Taxation Rs.”000”
25,000
23,074 Dividend
20,000
18,627 The Directors have proposed and approved, final dividend
15,000
of Rs. 1.00 per share, amounting to Rs. 4.2 Mn for the year
10,000
8,124 ended 31st March 2020. Company paid a final dividend of Rs.
5,000 2.00 per share amounting to Rs. 8.6 Mn during the year, in
(225)
- 4,152 respect of the year ended 31st March 2019. In accordance with
2015/16 2016/17 2017/18 2018/19 2019/20
(5,000) LKAS in which, the proposed final dividend, subsequent to the
reporting date is not recognized as a liability in the Financial
Profit for the year Statements as at 31st March 2020. The Company has necessary
During the year, the Company recorded a Rs. 12.3 Mn profit as funds to finance the payment of the final dividend. Dividend
against Rs. 25 Mn in the previous year. will be paid before 10th September 2020 as per the Article of
Association.

66
Solvency
Section 56 of the Companies Act No. 07 of 2007, requires that a solvency test be carried out prior to the payment of dividends. The
Board of Directors obtained a Certificate of Solvency from the Auditors, prior to the date of dispatch of the final dividend payment.
The actual performance Vs predetermined targets (Budgeted)
Predetermined Actual Variance

targets
Rs. in “000” Rs. in “000” Rs. in “000”
1 Turnover – Rubber segment 1,368 1,160 (208)
2 Turnover- PVC segment 391 430 39
3 Total Turnover 1,759 1,590 (169)
4 Exports 857 675 (182)
5 Local sales 902 915 13
6 Gross Profit % 19.8% 18.2% (1.6%)
7 Net profits (before tax) 55 12 (43)
Investments
During the year, the Company invested Rs 46.8 Mn in fixed assets including Rs. 16 Mn in stores building, Rs. 12 Mn for a PVC pipes
extruder and Rs 3.3 Mn in installing a new steam line. Total assets in the current financial year decreased by 1%. Net assets value per
share as at 31st March 2020 was Rs. 151.77 as against Rs. 150.76 as at 31st March 2019.
As at 31st March 2020, the Company had following financial investments.
Investment Bank Rs. Mn Rs. Mn
Debentures Commercial Bank 10.0
HNB Bank 5.0
Sampath Bank 5.0 20.0
Fixed Deposits Bank of Ceylon 10.9
DFCC Bank 11.9 22.8
Treasury bills 16.4
Total 59.2
Working Capital Cycle

The Working Capital Cycle for the current year and the previous year is as follows.
2019/2020 2018/2019 Variance
Debt Collection Period (Days) 76 100 24
RM Holding Period (Days) 57 35 -23
WIP Holding Period (Days) 8 12 4
FG Holding Period (Days) 25 20 -5
Credit Settlement Period (Days) -44 -50 -6
Cash Operating Cycle (Days) 166 167 1
Operating Cycle (Days) 122 117 -5

67
It is noted that there is a slight improvement in the cash Non- Executive Directors. They go through the internal audit
operating cycle compared to previous year. We have created reports quarterly and take necessary action to strengthen them.
a sustainable liquidity position as is evident by the working Further, the Company invested in a more advanced ERP system.
capital ratios and the improved banking facilities to fund our The supply department obtains several quotations prior to
operations. taking a decision on purchasing any item. For all chemicals and
services, there is more than one supplier in order to minimize
Cash flows the operational risks. Capital items valued at more than Rs.
Cash and cash equivalents decreased from a negative balance 25,000 have to be approved by the Board in the quarterly
of Rs. 37.8 Mn as at 31st March 2019 to a negative balance board meetings and audit committee meetings. A board paper
of Rs.1.4 Mn at the end of the current financial year. This is should be submitted for all major capital expenditures with
mainly due to the effective management of the working capital a feasibility report. When any price increase is anticipated
requirements of the Company. Company has generated Rs. 101 especially for rubber and chemicals, we maintain buffer stocks.
Mn from the operating activities during the year. Engineering spare parts are stocked for frequently needed
repairs on machinery.
Net cash used for investing activities is Rs. 41 Mn for this year.
This outflow was led by the investment in Property, plant and We allow credit only to approved customers, which are
equipment. Net cash outflow for financing activities in the year reviewed yearly. The credit periods and limits have been
under review was Rs. 23.5 Mn as against the outflow of Rs. 14 established for each customer. We obtain bank guarantees,
Mn in the previous year. deposits, post-dated cheques from local debtors and insurance
cover for export debtors whenever there is a doubt about
Total Liabilities recovery. Adequate provision is provided for any long-
Total liabilities of the Company decreased by 4% compared to outstanding dues. Internal auditors review these outstanding
the position as at 31st March 2019. This is mainly due to the balances and give a report to the Audit Committee. Then
decrease in deferred tax liability. The gearing ratio including the Audit Committee and the Board of Directors review and
short-term debts in the current year is maintained 31% as same evaluate it and take necessary actions.
as in the previous year. There were no long-term debts in the
current financial year. Segmental Review
This year, PVC sector recorded the highest turnover and it is a
Market Capitalization growth of 26% as against the previous year. Rubber sector has
The market capitalization of the Company was Rs. 305.1 Mn dropped by 5% and the Company recorded sales growth of
at the closing price of the share, down from Rs. 414.4 Mn 1%. The sales analysis segment-wise is given below.
recorded in the previous year. During the year under review, Rs in 000’s
the highest traded price of the Company’s share was Rs. 99.00,
Year ended Rubber PVC Total
while the lowest price was Rs. 72.1. PE ratio for the year ended
31st March 2020 is 25 times. 31st March 2020 1,160,566 429,636 1,590,202
31st March 2019 1,229,609 339,736 1,569,345

Discussion on Internal Control System 31st March 2018 900,474 215,975 1,116,449
Our internal audit function has also been out-sourced to
31st March 2017 1,057,269 192,228 1,249,497
Messrs Ernst & Young, Chartered Accountants, in addition to
verification carried out by our internal audit department. They 31st March 2016 982,878 195,460 1,178,338
continue to improve our systems of internal controls to ensure 31st March 2015 994,177 47,579 1,041,756
stronger procedural compliance and conformity with the Group
polices and legal requirements. The internal auditors directly
report to the Audit Committee in which there are independent,

68
Turnover - Rubber & PVC Market Price per Share Rs.
2,000
1,569 1,590 120.00
105.00 97.90
1,249 100.00 98.90
1,500 1,178 1,116
1,229 80.00 88.10
1,160
1,000 1,057 72.10
Rs.
983
Rs.Mn
900 60.00
500 40.00
430
340
195 192 216 20.00
-
2015/16 2016/17 2017/18 2018/19 2019/20
2015/16 2016/17 2017/18 2018/19 2019/20
Year
Year
Rubber (Million) PVC (Million) Total Sale (Million)

The PE ratio for the year is 25 and Dividend pay-out ratio is
34%. The current ratio as at 31st March 2020 and 31st March
Turnover - Segment wise 2018/19 2019 are 1.62 and 1.58 respectively. The liquidity ratio as at
31st March 2020 is 1.01 as against 1.14 as at 31st March
2019. The total assets as at 31st March 2020 is Rs. 1,178 Mn.
The graphs of Dividend pay-out Ratio, Total assets, ROCE and
27%
Market capitalization have also been shown in the Financial
Highlights.
73%
2) Key Audit Matters reported in the last
year auditor’s report
The action taken and the current status for the key audit matter
Rubber PVC
reported in the previous year’s audit report is given below.
Key Ratios
Earnings per share are Rs. 2.91 in the current year as against
Key Audit Matter Current status
Rs. 5.91 in the previous year. The market price as at 31st March
2020 was Rs. 72.1 (last year Rs.97.90). The Return on Capital Provision for deferred tax Potential risk and errors
Employed (ROCE) in the year is 2%. have been eliminated as much

as possible when significant
Earning Per Share (EPS) management estimates,
judgments and uncertainties
13.03
14.00
are involved
12.00 10.13
10.00
8.00
7.01 3) Quarterly performance
Rs.
6.00 The Company did well during the first and second quarters
4.00 2.91
and earned a marginal profit in third quarter. During these
2.00 0.04
two quarters, we have high turnover due to the seasonally.
-
2015/16 2016/17 2017/18 2018/19 2019/20 During last quarter we have made all annual adjustments and
Restated
provisions. The summarized four-quarter financial summary is
Year
shown in page 190. The annual adjustments and provisions
made during the year are bad debt provision of Rs. 2.8 Mn
and Rs. 1 Mn gratuity provision based on actuarial valuation
method.

69
4) Financial Calendar:

2019/20 2018/19
Interim Reports:
Quarter ended 30th June 09th August 2019 10th August 2018
Quarter ended 30th September 08th November 2019 12th November 2018
Quarter ended 31st December 07th February 2020 08th February 2019
Quarter ended 31st March 14th August 2020 24th May 2019
Interim Financial Statements have be published as per rule 7.4 of the Colombo Stock Exchange
Annual Report 14th August 2019 24th May 2019

AGM:
27th Annual General Meeting - 28th June 2019
28th Annual General Meeting 30th September 2020 -

Date of Dividends Recommended 14th August 2020 24th May 2019

70
Manufactured
Capital
Rs. 47 Mn Rs. 398 Mn Rs. 3.5 Mn 3

Capital Value addition Turnover Number of
expenditure per employee factories
Opening new JSR packing building Our Product Range

We are able to produce many products as we have the
W e gave the priority for transforming our manufacturing manufacturing facilities of compress moulding, extrusion,
operations to be leaner and more efficient during microwave, injection moulding, C pressing and mixing. The
the year. Escalating costs of raw materials and intense price Company invested in modern generator in order to maintain
competition in the market compelled us to revisit and re- smooth an un-interrupted production. Our PVC products are
engineer our processes to minimize wastage, reduce utility distributed through an exclusive dealer network widespread
consumption and achieve cost. throughout the country. At present we have around 30 dealers
for PVC distributions.
In order to bringing excellence to the surface, we produce a

wide range of both rubber and PVC- related products. We Production Efficiency Ratios
aim at versatility with the intention of becoming bigger and Employee productivity is measured through revenue and value
bigger, year by year. We continuously invest in technologically addition per employee.
advanced machinery and in Research and Development.

Some of the production efficiency ratios for the year are given
These investments will place us on a strong footing for the
below. We discuss these ratios with senior management and
years ahead. We have three factories in Galle, Kalutara and
departmental heads in our monthly meetings for the continues
Baddagama.
improvements.
71
Manufactured Capital (Contd...)
Production efficiency ratio 2019/20 2018/19
1 Turnover per employee per month - Rs. 293,191 290,607
2 Turnover / total man hours - Rs 1,396 1,454
3 Value additions per employee per month- Rs 72,831 78,591
4 Total rubber compound in Kg/total direct labour hours (Kg per hour) 3.5 4.3
5 Wages cost per direct employee per month - Rs 36,692 37,576
6 Salary cost per indirect employee per month- Rs 44,841 45,998
7 Total labour cost (including other overheads) per direct employee per month – Rs 42,396 43,875
8 Total labour cost (including other overheads) per indirect employee per month – Rs 52,085 52,983
9 Labour turnover for the year - % 1.6 1.6
time to time, meters were checked by the Ceylon Electricity

Energy Efficiency Ratios
Board on our request. Capacity banks have been installed.
In the year under review, we received ISO 50001on Energy
Transparent roofing sheets were installed and steam lines
Management and ISO 14001 on environmental management
were repaired to prevent steam leaks. In all plants, we monitor
in addition to ISO 9001:2015. Next year we have planned
electricity consumption on a daily basis. All halogen bulbs
to obtain ISO 18001 on Occupational Health and Safety
have been replaced with LED of CFL bulbs. We invested for
Management.
a modern generator to operate all machinery in the factory
uninterruptedly during the year.
The adoption of energy efficient machinery and reducing
dependence on fossil fuels continues to be one of the key
The Central Environmental Authority has renewed our license
priorities and during the year we invested in energy saving
every year for the last 30 years continuously without any
projects which are expected to result in significant reduction
obstacle. Boiler certificates were obtained under Section 34
in our energy consumption in the future. We have installed
of Factory Ordinance, No 45 of 1942. Further the Company
meter reading units for each mill, extruder and press lines and
checked TVOC’s test and Ambient test with help of Industrial
monitored them daily. Every month we calculate the energy
Technology Institute, Colombo 7, and passed all these tests to
ratios and compare them with the budget, previous year and
ensure that the prevention of air pollution.
other manufacturing Companies in the rubber sector. From
Training programe on Energy Saving

72
Plant and Machinery Energy efficiency ratio 2019/20 2018/19

During the year the Company invested Rs. 24 Mn in plant and
1 Electricity units per MT of rubber
machinery as shown under Note number 13 of the Financial
compound ( Units per MT) 523 471
Statement on page 169.
2 Fuel liters per metric ton of Rubber
Fixed Assets Turnover Ratio (Times) compound – ( Liters per ton) 175 238
4.5 3.9
3.9 3.7
4.0
3.5
3.5 Plant Capacity
2.7
3.0 During the year, the Company build up a modern packing
2.5
2.0 room for rubber sealing rings and a two stories building for
1.5
1.0 increasing the storing capacity in the PVC plant at Baddegama.
0.5
-
Further Company Invested in a modern and hi-tec extruder to
2015/16 2016/17 2017/18 2018/19 2019/20
Restated manufacture PVC conduits.
Year
The above graph indicates that turnover generated by using The total capacity for rubber products is 300,000 kg per month
fixed asset has been on the increase over the last year. and average capacity utilization is 60%.
The total capacity for PVC products is 200,000 kg per month

and average capacity utilization is 50%.
Opening new JSR packing building

73
Galle Factory
Baddegama Factory
Kalutara Factory

74
Location of Properties
Currently the Company owns the following properties:
Description Address Land Building Total Market

Value of the
property
Extent Market value Extent Market value
Appox Appox

1) Galle factory Akuressa Road, 7 A 2 R 17 P Estimated to be 94,900 Estimated to be Current value
(Bought during Bogahagoda, Galle. Rs. 260.5 Mn Sq ft Rs. 300 Mn estimated to be
the period from as at to date. as at to date. Rs. 560.5 Mn.
16/9/91 to
30/11/93) (This was valued
on 27th
September
2018 done by a
professional
valuer.)
During the year

the Company
bought 23
perches of
neighboring
land for Rs.
2.5 Mn
2) Kalutara factory No. 57/B, Fullerton 120 perches Estimated to be 5,990 Sq ft Estimated to be Current value
(Bought in 2009) Industrial Zone, Rs. 25 Mn Rs. 15 Mn estimated to be
Nagoda, Kalutara as at to date. as at to date. Rs. 40 Mn.

(This was valued
on 27th
September
2018 done by a
professional
valuer.)
3) Baddegama Gilcroft Estate, 2 A 2 R 0.11 P Rs. 20 Mn 25,191 Rs. 100 Mn Current value
factory Kiribathwila, as at to date. Sq ft as at to date. estimated to be
(Bought in July Ampegama, Rs. 120 Mn.
2014) Baddegama (This was valued
on 27th
September
2018 done by a
professional
valuer.)

4) Paddy Field, Akuressa Road, 1 A 3 R 3 P Rs.1.1Mn - - Rs. 1.1Mn
Bogahagoda Bogahagoda, Galle. as at to date as at to date
(Bought in Feb
2002) (This was valued
on 27th
September
2018 done by a
professional
valuer.)
Total 12 A 2R 306.6 Mn 124,541 415Mn Rs. 721.6 Mn

43.11 P (Current
estimated Value)
75
Quality
The responsibility for the quality of the products is assigned to
everybody at Samson International PLC and it has not restricted
up to the quality department. Quality is checked at every stage
or process of the production in order to meet the expectation
of the overseas customers and the guidelines and regulations
given by internationally recognized laboratories.
During the year, we received a bronze award from National

Cleaner Production Center on 21st January 2020 and also a
certificate of commendation from the National Productivity
Secretariat on 26th December 2019. We conduct Kizen quality
competition in the factory and awards are given to employees.
Quality Policy
Samson International PLC is committed to manufacture and supply
quality moulded & extruded polymer products while mitigating
the risks that can affect the quality management system of the
company, under efficient & effective management practices. And
also provide the maximum value to the customer by providing
products at competitive prices with highest level of service to meet
• Customer needs and expectations all the time.
• Continual improvement of products, processes and systems

by efficient utilization of its resources.
• Minimum defects in all our products & processes.
Kizen Quality competion Awardees • Compliance with statutory and regulatory requirements.
• On time delivery.

76
Human
Capital
456 1972 1.6 79:21

Employees Training in man Labour Turnover Gender ratio
hours ratio (Male: Female)
Staff of Galle Factory

uman Capital Management plays a vital role in any and to earn a regular income without migrating to Colombo
H Organization. It ensures that business enterprises or other cities in Sri Lanka or abroad. We value each and every
sustain its activities profitably in the longer term due to high one of them. The Company’s employee turnover rate is around
performing and effective workforce of the organization. Fifty 1.6 % is well below the industry norm which is the result
seven years ago, the founder of the DSI Group the late Mr. of its sustainable employee policies and practices. The table
Samson Rajapaksa envisaged that “Employer and Employee given below indicates how we have increased the number of
should work as one family.” His vision guided us to treat our employees since inception.
human resources as the greatest asset of our Company.
Introduction of production incentive to employees has been

In our Company, the majority of our employees have been implemented to obtain a higher income to them while
recruited from neighboring villages since 1988, the year in improving the productivity. Developing employee capabilities is
which the Company was incorporated. Now, 456 villagers have a key priority for both segments and we continued to invest in
been given exposure to work in an international Company enhancing leadership and technical skills.
77
Human Capital (Contd...)
Number of Employees year wise

500
Number of Employees
400
300
200
100
2011
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2012
2013
2014
2015
2016
2017
2018
2019
2020
Year
by industry experts. Our human resources department is

Year Number of Year Number of
dynamic in recruiting and maintaining a well talented work
Employees Employees
force. Providing a safe and pleasant work environment is
1989 1 2005 301
essential for a healthy and productive workforce. As guided

1990 6 2006 323
by the philosophy of our parent Company, we are committed

1991 14 2007 349
to providing our employees with a work environment that

1992 19 2008 293
is conducive to genuine contentment, and an employee

1993 72 2009 258
engagement system that offers the highest level of motivation.

1994 179 2010 267
We ensure a motivated workforce by providing competitive

1995 201 2011 288
remuneration and other benefits together with career growth

1996 178 2012 302
opportunities.

1997 246 2013 293

1998 232 2014 312

1999 224 2015 409

2000 279 2016 456 Now, 456 villagers have
2001 306 2017 436

2002 267 2018 415 been given opportunities

2003 272 2019 414

2004 292 2020 456 to work in an international
We continue to recruit and maintain a well talented work
Company and to earn a
force; providing a safe and pleasant work environment is
regular income without

essential for a healthy and productive workforce. As guided
by the philosophy of our parent Company, we are committed
to providing our employees with a work environment that
is conducive to genuine contentment, and an employee migrating to Colombo or
engagement system that offers the highest level of motivation.
We ensure a motivated workforce by providing competitive other cities in Sri Lanka or
remuneration and other benefits.
abroad
The industry of manufacturing rubber-related products is
drained by the shortage of skilled human resources and
the Samson International Plc has addressed that issue to a
greater extent through its best practices that focus on the
personal development of our staff & workers through skills
and knowledge building. Training programmes are conducted

78
Staff of Kalutara Factory
Staff of Baddegama Factory

Age-wise:
Workers Staff Executive TOTAL
Male Female Male Female Male Female
Below 30 years 127 20 25 17 2 0 191
30-50 years 142 20 42 17 17 2 240
Above 50 years 14 1 7 2 1 0 25
TOTAL 283 41 74 36 20 2 456

Factory-wise:
Galle 201 35 35 33 19 2 325
Baddagama 67 3 38 3 1 0 112
Kalutara 15 3 1 0 0 0 19
TOTAL 283 41 74 36 20 2 456
79
Benefits given to employee when Age analysis of the employees

becomes a permanent We maintain a right mix of aged employees. We have mostly
We take casual employees for three months. During this from the category of 31-50 years and next from the category of
period, if he/she performs well, we take them in to the Below 30 years. These 31-50 matured category provides
permanent cadre with one year probation period. When a highest productivity.
casual employee becomes a permanent, he/she is entitled to
the following benefits. Age analysis of the employees
as at 31st March 2020
1. Salary increase Over 55 3
2. Productivity incentives
41-55 125
Age category (Years)

3. Attendance bonus
4. Annual bonus 31-40 116
5. Medical insurance
21-30 196
6. Death donation
18-20 16
7. Gift vouchers to buy DSI shoes
Number of employees
8. Uniform
9. Wedding gift The age analysis of the employees is as follows:
10. Transport Age As at 31st March 2020 As at 31st March 2019
11. Additional allowance for employees with more than Category No % No %
12 Additional allowance for employees with more than
18-20 16 4 20 5
three children
13. An allowance when the first child of the employee is 21-30 196 43 174 42
born 31-40 116 25 116 28

14. Company Loan Scheme 41-55 125 27 102 25
15. Distribute paddy harvest of the Company at Over 55 3 1 2 0
concessionary price Total 456 100 414 100
16. Providing financial assistance and prizes to the children
of employees who excels Analysis of employees gender-wise
G.C.E.O/L and G.C.E. A/L Examinations. We have the right mix of male and female employees to suit
our production lines. Females are very efficient at packing while
male employees work in the production process.
Gender-wise
as 31st March 2020
Gender category
Female
employees
84
Male
employees
372
Number of employees
Medical Clinic on Diabetic & Cholesterol

80
No. of employees gender-wise is as follows. employee. As you are aware, the consequences of good
As at 31st As at 31st employee relations are high efficiency, ensures optimum use
March 2020 March 2019 of scarce resources, low wastage, generate innovative ideas,
No % No % facilitate change, decrease in indirect costs incurred through

high labour turnover, absenteeism and bring goodwill to the
Male employees 372 82 329 79
Company.
Female employees 84 18 85 21
Total employees 456 100 414 100

In order to improve the employee relations the following
strategies are used by the Company.
Service Analysis
There are employees, who started their career in the staff
1) Having good human resource policies: We have a
category, have become senior managers and head of the
comprehensive human resources policies and procedures
department now. We have a very young and dynamic cadre,
which cover recruitments & selection, promotion,
e.g., 52% of our employees have worked less than 5 years.
transfers, compensation, performance appraisals, dispute
84% of the employees have worked less than 10 years.
management, grievance handling and overall employee
Service Analysis conduct. The human resources philosophy of our company
as at 31st March 2020
is to be an equal opportunity employer. Our recruitment
Above 25 years 12 philosophy is to attract employees with appropriate

Between 21 and 25 years 12 knowledge, skills, values and attitudes that would be in
Service category
Between 16 and 20 years 17

line with the culture and goals of the organization whilst
Between 11 and 15 years 29
Between 5 and 10 years
catering to growth and providing opportunities for such
147
Below 5 years 239 employees. The Company does not discriminate on the
0 50 100 150 200 250 300
basis of gender, race, nationality, age, social origin, religion,
Number of employees
or any other basis.
Service analysis of the employees is as follows:
As at 31st March 2020 As at 31st March 2019

Service Category No % No %
1 Below 5 years 239 52 232 56
2 Between 5 and 10 years 147 32 117 28
6 Above 25 years 12 3 6 2
Total 456 100 414 100
Employee and Industry relations All employees of the Company undergo regular appraisals
The Company takes all possible steps maintain good employee to receive feedback resulting in continuous improvement of
and industry relations. Human resource Department plays a their performance. The continuing dialogue with all levels of
significant role in an organization’s uphold and success in this staff further contributes to the company and commitment.
regard. The employee relations and industrial relations are a The Company human resources policy requires annual
part of human resources functions which deals in maintaining formal feedback to be provided to all employees. We have
a harmonious relationship between the employer and the created a performance-centric culture, which has been a

81
cornerstone of the Company’s success. We ensure that Manager takes the same meals with the workers in the
employees performing at the same level will be treated alike Company dining hall in which 200 seating arrangement
while there would be clear differentiation between those is available. All employees including the Director/General
performing at different levels. We received a merit award Manager and other Executives punch the attendance for
for Social Dialogue and Workplace Cooperation from the work and there is no discrimination for administration
Department of Labour on 22nd January 2020. related official work.
3) Recognition of join consultative committee. These are

management’s and employees’ joint forums, created for
the discussion and settlement of employee problems such
as employee grievances and work related issues. This
provides employees a platform to present their grievances
and problems and take necessary steps to solve them. This
represents employees of all levels, all departments and
genders for fair representation of problems. We believe
that having constant dialogue with them, involving them
in certain decision- making, the company can create
an environment of trust, cooperation, respect, a better
We do not employee any person below 18 years of age interaction between employers and employees, creating
nor advocate any form of child labour. We do not provide harmonious employee relations and higher productivity,
overtime of more than 60 hours per month for workers as leading to good industrial relations. A fair and sound
required by our national laws. grievance handling policy and procedure is a prerequisite
for good human resource practices and for healthy
2) To have good communication: We maintain open and employee - employer relations. Our grievance practices
two way communication, where employees are free to
communicate any matter with the top management and The Company encourages
where top management communicate information aptly to
the lower level employees. This will increase trust among
employees, leading to fewer disputes and grievances while
employees to express
creating an environment open to change. We conduct
regular formal and informal organizational or departmental their opinions for the
meetings where employers can share information with
employees whilst giving employees the opportunity to development both of
share their problems, ideas, and views. We also use memos
and notice boards to communicate company decisions, the Company and of
performance, new policies, rules and regulations, changes
done to existing policies and information about meetings
and gatherings, to employees promptly and clearly. Group’s
the employees, through
newsletter is published monthly. Employees are given an
opportunity to demonstrate their artistic abilities and their a Joint consultative
wedding photos through the Group newsletter, making
employees feel happy and valued. committee meetings held
Meals are given to all employees irrespective whether he is every month
permanent or not. Managing Director and Director/ General
82
are aimed at allowing employees to bring to the attention than three children. Please see on page 75 under the
of the management any dissatisfaction or injustice which “Benefits given to employee when becomes a permanent”
may exist at the work place. It is a formal process offering for more details.
employees of different levels, solving grievance issues and
aiding to maintain a fair and cordial working environment. 4) Social activities: We provide an opportunity for employees
We also value the opinions of our employees and welcome and management to get-together, conducting annual inter
suggestions on how we can improve our service standards. -department softball cricket tournament, annual inter-
Company volleyball tournament and interact with each
The Company encourages employees to express their other on a personal level. Such events give an opening to
opinions for the development both of the company and employees and management to mix and get to know each
of the employees, through a joint consultative committee other, opportunity they hardly get while working which
meetings held every month. The Director/ General results create better relationships.
Manager participates in these consultative meetings with
workers, staff and executives. This committee consists of Our objective is to create
representatives from management and workers from the
each section. Director/ General Manager and other senior an atmosphere for our
management discuss the problems & grievances of the
workers from each sections and remedial actions are taken.
employees where they
Each month this meeting is held and minutes are circulated
can work with happiness,

to everybody including the Managing Director.
enthusiasm and pride

Last year, for the annual get-together, we organized a four
hour adventured Ship tour for Whale watching in Southern
sea from Galle to Mirissa for all employees by ship of
“Princess Lanka” owned to Sri Lanka Navy on 15th February
2019. There were 313 participants (76%) in this annual
event, which they enjoyed very much and appreciated the
Joint Consultative Committee
management as this is a very rare chance for a worker to go
on a ship and whales watching. Our objective is to create
We strictly adhere the government legislations. Adherence
an atmosphere for our employees where they can work
to these various legislations helps organization to maintain
with happiness, enthusiasm and pride. However due to the
harmonious employee relationships. We do not employ
Covid-19 virus outbreak, we had to postpone the annual
any person below 18 years of age nor advocate any form
get-together this year.
of child labour. We do not provide overtime of more than
60 hours per month for all employees as required by our
national and international laws.
Welfare activities: We give meals and uniforms to

employees at a nominal fee, providing transport facilities,
loan systems, insurance schemes, death donation schemes,
medical insurance, gift vouchers to buy DSI shoes, wedding
gift, and additional allowance for employees having more Receiving a bicycle for the best player

83
conducted inter-company volleyball tounarment for the

5th consecutive time at Company’s volleyball courts. The
winners were given Kulatunga Rajapaksa challenge trophy.
SIL team was the runner up in men’s tournament.
Inter-department Softball cricket tournament at Samanala ground, Galle
Receiving a bicycle for the best player
SIL Teams in the Volleyball tournament at SIL Volleyball court
The inter-department softball men’s and women’s cricket

tournament is conducted annually. This year it was held
at the Samanala ground at Galle, on 13th October 2019
and 13 teams including the employees from Kalutara
and Baddegama factories participated. This year, in the
men’s tournament, the Baddegama factory team among
13 teams. Baddegama team was also champions in the
women’s tournament. Malith and Rohini were selected Enthusiastic spectators
as the best players and they were awarded a Samson

bicycle and other awards. Samson International Plc
84
Samson International Plc, like the other companies of the

Group, is imbued with Sinhala, Buddhist cultural values
with a conservative and paternalistic outlook. For example,
employees are required to commence their daily chores
after reciting the Five Precepts. Liquor is not allowed even
in outings and get-togethers organized by the company
and any other special occasions such as the annual cricket
and volley ball tournaments. Most of the staff members use
Sinhala as their medium in their day-today work. Further, a
simple, rustic and informal environment prevails both in the
factory and office premises.
8) Training: We provide training to employees on technical as

well as non-technical areas (communication, presentations,
time management, leadership etc). We know that training
is a cost for which an immediate result cannot be seen most
of the time. Training provides higher performance as well as
good industrial relations.
Inter-department Softball cricket tournament at Samanala ground, Galle
Out of the training programmes, training of supervisors is

6) Gain sharing schemes: sharing savings with employees
very important. Supervisors are the personnel who directly
is another method we use to improve industrial relations
deal with the operational level employees and can be
in organization. Such exercises result in the increase of
considered to be the crux of any organization. We know
commitment, motivation, morale and job satisfaction
that when supervisors are not equipped with necessary
of employees leading to good employee-employer
technical and human resources management competencies,
relationships. A wastage saving incentive scheme and
it could lead to a lot of grievances and disputes. Therefore
production incentive scheme are a few of such exercises.
it is necessary to train supervisors on both technical and
human related competencies to maintain good industrial
7) Equal treatment: Equal treatment to employees without
relations in the company.
discrimination based on gender, race, ethnicity, religion or
social back ground is another way we improve employee
We continued to invest in our employees through regular
relations. Treating all employees equally in all areas of
training and development programmes conducted in-house,
human resource management such as recruitment,
outside and overseas which is designed to develop technical
promotion, remuneration, training and recognition which
as well as soft skills. Training is an integral component of
result in full realization of employee potential while
our business success as well as our strategy to achieve
increasing their job satisfaction and commitment. At
sustainable employee relations. Training programmes are
present we have Sinhalese, Tamils, Muslims, Christians, and
conducted by industry experts. We strongly believe in the
Hindus in our cadre.
development of human capital, as we recognize the fact
that our people are the key to our success. In an export
We believe that our current culture promotes good relations
industry where customer care makes the difference, we
and interactions between employees and employer which
strive to develop the skills of our staff and workers so that
leads to positive and harmonious employee relations. Ex.
we stand out from our competitions.
having meals at the same place by the senior managers and
lower level of employees, open communication and close
During the year, employees underwent many internal and
relationship between management and employees.
external training programmes. These programmes span
on the job, off the job, external, hands on and internal
programmes which are designed to enhance knowledge,
85
update skill, create an empowered workforce and the heads of departments. This forms the blueprint for
managerial skills of the senior management. The annual training and development activities for the coming year and
training plan is designed based on the results of the training outcomes are assessed to monitor progress in line with the
needs analysis, which includes competency assessments, plan.
customer expectations and developments in the rubber
industry. This exercise is carried out in collaboration with
Training Hours
2018/19
1705.5
271
2019/20
903.5
111
0 200 400 600 800 1000 1200 1400 1600 1800

Training man hours
Training hours – Internal Training hours - External
Training for Engineering team
2019/20 2018/19
Description No of Hours % No of Hours %
Training hours - External 111 11 271 15
Training hours – Internal 903.5 89 1705.5 85
Total Training hours 1014.5 100 1976.5 100
Traininig Programmes in 2019/20

No of Training Training Hours
In-House Total Male Female Total Male Female
Wastage Reduction Methods 10 8 2 30 24 6
Electrical Safety Program 210 140 70 630 420 210
Testing (Specific Gravity ) 6 3 3 12 6 6
Day Fire Drill 230 157 73 115 78.5 36.5
Process control (SPC) Sampling Techniques and Inspection 6 3 3 6 3 3
FSC Awareness Program 27 12 15 54 24 30
Pre Shipment Inspection 5 3 2 10 6 4
In Process Inspection 5 3 2 10 6 4
Sampling Techniques 7 4 3 14 8 6
Moulding Methods 15 15 - 22.5 22.5 -
Total 521 348 173 903.5 598 305.5
Outside
Finite Element Theory 2 2 - 16 16 -
Digital Marketing Plan 1 1 - 8 8 -
Empowering Supervisors 1 1 - 8 8 -
Process Control ( SPC ) Sampling Technics and Inspection 1 - 1 16 - 16
Occupational Health & Safety 1 1 - 8 8 -
Calibration 1 1 - 8 8 -
Role of Junior Managers and Supervisors on ISO standards 2 - 2 16 - 16
Seminars on Synthetic Rubber - EPDM Technology 2 1 1 16 8 8
Modernizd Customs Procedure and & Imports/Exports 1 1 - 7.5 7.5 -
Industrial Water Treatment 1 1 - 7.5 7.5 -
Total 13 9 4 111 71 40
Full Total 534 357 177 1014.5 669 345.5

86
The number of programmes category wise is as follows

No. of Training Programmes
Group Category External Internal

Executive Staff 4 0
Male Clerical Staff 3 0
Workers 1 3
Total 8 3
Executive Staff 0 0
Female Clerical Staff 2 1
Workers 0 0
Total 2 1
Executive Staff 0 0
Male & Female Clerical Staff 0 2
Workers 0 4
Total 0 6
Total Training 10 10
Day and night fire drills are organized for each plant. In
this year it was organized and conducted by an outside
consultant. This provides training to our employees and
especially the fire team to prevent damage to physical and
human assets of the factory and neighboring villagers in
case of fire in the factory. We have recruited a fire team
from among the workers representing all sections and a
special T – Shirts (with yellow colour) are given to them to
identify and recognize their contribution to the Company.
Fire preventive team - SIL

87
We also invested a significant amount in fire Hydrant 10) Employee participation: participative management is
system in Galle and Baddegama factories. the involvement of employees in the decision making of
companies through methods such as suggestion boxes,
9) Employee recognition and reward: We recognize all join consultative committee, all CSR activities. This results in
employees for their contribution to organizational employee competency development, increase in employee
performances. Best attendance awardees, awardees for the satisfaction and motivation due to increased self-worth,
best innovative ideas, most outstanding employees during better settlement of production problems, lesser disputes,
the year, long service employees are some of the awards we increased team work, better performance and easy
present. implementation of decisions. Each employee including
workers is given an opportunity to donate cash & company
products on behalf of the company and these photographs
are displayed on the Corporate Social Responsibility notice
board of the Company.
11) Employee Assistance Programmes: We help employees

to deal with their personal financial difficulties. Eg. We
help employees and their children to enter university
by providing financial assistance. Further, an additional
Best attendence awardees
allowance for employees having more than three children is
We recognize long service employees and outstanding given monthly.
employees at our annual felicitation ceremony and a
certificate and cash awards are given to them. Such 12) Health and safety programme: We implement health
recognition and reward will make employees happy, and safety programs to safe guard employee health and
satisfied, motivated and committed leading good industrial safety. These results to increase employee cooperation and
relations. However, due to the Corona epidemic, we satisfaction, motivation, commitment due to management’s
couldn’t organize this event for this year. concern for employees and safe and healthy work
environment.
The Health and Safety Policy of the Company is as follows.
Health and Safety Policy
“As Samson International Plc values the health and safety

of all employees, the following measures are being taken
with the objective of having a hazard free and healthy work
environment.
1) Awareness’ creation for health and safety programme
are conducted for employees.

2) Provision of essential protective gear and safety
equipment.
3) Continuous upgrading of safety procedures.
4) Enhancing the health and well-being programmes for
Company CSR display notice board employees”

88
Safety committee has been formed by taking representatives

from each section and each category and they are responsible
for monitoring and implementation of the above Company’s
safety policy and related practices.
Our employee health, safety and welfare receive constant

attention in our decision making process. The services of a part-
time Doctor (once a week) and a full-time Nurse are available
to attend to the medical needs of our employees. Surgical and
Hospitalization Insurance Cover and Personal Accident Cover
are some of the facilities given to our employees.
First Aid Committee headed by Company Nurse
Boiler certificates were obtained under Section 34 of Factory

Ordinance, No 45 of 1942. Further the Company checks
TVOC’s test and ambient test with help of Industrial Technology
Institute, Colombo 7, and passed all these tests to ensure that
the prevention of air pollution. The Central Environmental
Authority has renewed our license every year for the last 32
years continuously without any obstacle.
We provide good working conditions such as proper

ventilation, lighting and sanitary facilities to make employee
Safety Committee headed by Maintenance Engineer content and satisfied. We do design of equipment, tools,
We follow all national guidelines and laws on workplace furniture and different procedures in a manner that creates a
health and safety directives. These directives set out general comfortable, safe and efficient layout for employees to work.
principles for the protection of the workers’ occupational

health and safety. We have initiated a range of activities,
Labour Turnover
We use to measure the level and nature of employee relations
training programmes and workshops related to health and
in the Company through attitude surveys number of grievances
safety. During the year a training program was organized
complaints, number of cases in labour tribunals, labour courts
for the industrial safety which was conducted by a factory
and arbitration, employee turnover rates, exit interviews,
inspection engineer from the labor department. We provide
number of accidents, rate of absenteeism, quality of production
safety equipment/tools and safety shoes to all our employees.
and services.
We actively provide a healthy and safe work environment for
our employees and have taken steps to minimize accidents and
It is noted that labour turnover of the Company has slightly
injury to workers.
increased especially of unskilled workers in some of the
months. We have seen that during the paddy cultivation
A “Health Week “is organized by the Company annually. A
and harvesting season, there is high labour turnover and
work shop and Training programmes were conducted on all
absenteeism. We have built a succession plan identifying key
employees. Further a special healthy meal is given to employees
positions and commenced a system to groom and develop
during this health week.
successors as part of our strategy for long-term continuity.

89
The labour turnover for the year ended 31st March 2020 is as Labour Turnover Analysis - Month wise
follows:
Month 2019/20 2019/19
(%) (%)
April 1.5 3.1
May 1.7 1.5
June 2.5 0.5
July 1.0 2.5
Employee Retention August 2.2 1.7
September 1.2 2.0
Rate is 98.4% October 1.4 1.0

November 1.2 1.2
December 1.4 2.2
January 1.9 1.7
February 1.9 0.7
March 0.7 1.0
Average 1.6 1.6
Labour Turnover Analysis - Age-wise (2019/20)

Below 30 years 27 12 6 5 0 0 50
30-50 years 11 4 7 4 1 0 27
Above 50 years 0 0 0 0 0 0 0
TOTAL 38 16 13 9 1 0 77

Labour Turnover Analysis - Factory-wise (2019/20)
Galle 25 11 7 9 1 0 53
Baddegama 11 5 6 0 0 0 22
Kalutara 2 0 0 0 0 0 2
Total 38 16 13 9 1 0 77

90
Analysis on Departmental wise

The highest number of employees in the Company work in the production department. This is 292 employees out of 456 which is
64% of the total cardre. We have employed 45 employees for marketing section which includes PVC local sales channel and export
department of the rubber sector.
Total Workers Department Wise

Workers Staff Executive Total
Production 231 42 11 5 3 - 292
Engineering 19 - 3 1 2 - 25
IT - - 1 - - - 1
Accounts - - 6 13 1 - 20
Marketing - - 34 2 9 - 45
Stores 25 - 3 - - 1 29
Human Resource - - 3 4 - 1 8
Administration - - 1 2 - - 3
Supply - - 2 4 1 - 7
Quality Assurance 14 1 1 2 2 - 20
Others - - 2 1 3 - 6
Total 289 43 67 34 21 2 456
The incentive paid for above employees gender wise as follows.
Male Female
Rs. Rs.
Apr-19 407,477.17 75,768.21
May-19 551,590.51 92,068.04
Jun-19 622,277.69 94,876.57
Jul-19 642,130.28 96,053.36
Aug-19 578,950.35 82,574.40
Sep-19 565,210.65 89,519.58
Oct-19 589,216.43 73,176.28
Nov-19 523,471.06 67,193.82
Dec-19 505,092.11 73,176.28
Jan-20 493,317.99 77,530.38
Feb-20 528,853.48 76,064.44
Mar-20 311,800.22 44,504.22
Total 6,319,387.93 942,505.58
During the year, we have promoted eight male and three female employees.

91
Social
and Relationship Capital
32 2 Rs. 1.2 Bn 22
Global presence Overseas Total payments to No of CSR
(No of exhibitions suppliers activities
countries) participated
Donation for Dorape Dhamma School Children
T he Social and Relationship Capital consists of the crucial 1) Our Customers

relationships that forms the foundation for the Company’s Of the 194 countries in the world our products are available
value chain. We therefore invest to maintain a strong in the under-mentioned 32 countries which cover 16% of the
relationship with customers, community, trade associations, total number of countries in the world. Strategies are being
employees and suppliers which form the foundation to our followed to widen our global presence by participating in trade
sustainable journey. exhibitions, trade delegations and aggressive sales promotion.
92
Social and Relationship Capital (Contd...)
Global presence
EUROPE ASIA AFRICA NORTH AMERICA OCENIA SOUTH AMERICA
(47 Countries) (44 Countries) (54 Countries) (23 Countries) (14 Countries) (12 Countries)
Austria Bangladesh Kenya Canada Australia Ecuador

Belarus China South Africa United States New Zealand
Belgium India
Czech Republic Japan
Our products are available

Estonia Maldives
Finland Pakistan
Germany Saudi Arabia
Lithuania
Netherlands
South Korea
Sri Lanka

in 32 countries which

Norway Turkey
Poland covers 16 % of countries
Romania
Sweden
Switzerland
in the world
United Kingdom
The Countries where

our products are
available are in red
Global presence analysis
Region 2019/20 2018/19

(Rs.000’) (Rs.000’)
Europe 522,047 630,704
Australia and New Zealand 21,568 2,444
USA and Canada 22,634 24,337
South Africa and Middle East 38,272 38,682
Asia 985,681 873,98
Total 1,590,202 1,569,345

93
Exhibitions Participated
The Company is now targeting to enter new markets in the
USA, South America, Japan and Middle East. We participated
the following overseas exhibitions during the year and found
many potential customers.
• “National Safety Council Congress and Export -2019”

exhibition in San Diego, USA in September 2019.
• “K - Fair” exhibition and Trade Delegation visit in
Dusseldorf, Germany in October 2019.
We also participated the following local trade exhibitions and

displayed our rubber and PVC-related products and found
many customers.
Customer Complaints
• Construct 2019 exhibition held at BMICH Colombo in
August 2019 Year Number of
• Jaffna International Trade Fair 2020 held in January 2020. Customer complaints
2012/13 29
2013/14 14
2014/15 17
2015/16 12
2016/17 14
2017/18 12
2018/19 25
2019/20 16
The numbers of customer complaints we received for the last

eight years are shown in the table above. During the year
At National Safty Export Exhibition USA
the number of customer complaints has decreased by nine
compared to the previous year.
During the year, six new overseas customers joined the
Company. Further, many of our customers visited our factory in
The objective of the Company is to have continuous reduction
the year using the Highway from Katunayake to Galle.
in customer complaints year by year. Therefore, the target for
each year is to have a lessor number of customer complains
Twenty customers from various parts of the world met us in
compared to the previous year. In response to customers’
our factory to discuss mutual business growth. The number of
complaints, the management process has been designed to
customers lost is zero. 50% of our customers have been with
listen to customers earnestly and take necessary remedial
us for over 10 years and 10% of our customers have been with
action. We resolve these complaints in order to provide a quick
us for over 15 years. We received Gold award from the National
solution to customers and also preventive measures to avoid or
Chamber of Exporters of Sri Lanka on 20th September 2019,
minimize repetitions of such complaints. Our Quality Assurance
for the fifth consecutive year.
department strengthened by recruiting experienced staff and
graduates.
94
2) Our Community temples, Bona Vista Elders’ Home, hospitals, government
institutions and police stations in the current year. Each
The communities we operate in are significant stakeholders in
employee including workers is given a chance to donate either
our business. Therefore, we make every endeavor to establish
in kind or cash which is a part of human resources policy of
mutually beneficial relationships especially with villagers,
the Company thereby all employees are motivated and our
temples and schools by contributing towards their development
objective is to create an atmosphere for our employees where
whom we consider as a part of our family. Our Company is
they can work with happiness, enthusiasm and pride.
situated a few miles away from the city of Galle in a rustic
environment of calm and tranquility among lush greenery and
vegetation. Social and environmental responsibility has become Each employee including
an integral part of our wealth creation and it is a continuous
process. In appreciation of our contribution to the community, workers is given a chance
for the benefit of villagers, temples and schools in the Southern
province in particular, initiatives taken are as follows: to donate either in kind

2.1 CSR activities to villagers: or cash which is a part of
Distribution of paddy to Samurdhi beneficiaries human resources policy of
Paddy was distributed to a hundred Samurdhi Dorape
beneficiaries at free for the 6th consecutive year at 5kg per the Company
person after reaping the harvest from the Company’s paddy
field on 26th June 2019. The balance paddy was distributed List of Donations made in the year 2019/20:
among the employees at concessionary price. Further a pair Date Description
of slippers and a food voucher were also distributed to them. 1 2019-04-05 Donation cash , Rubber carpets, Rubber
Mr. Kulatunga Rajapaksa, Managing Director and other slippers to Katagoda primary school,
management staff members participated for this function and Baddegama
2 2019-06-13 Donation Rubber mats, Rubber H.W.B. to
distributed it. Villagers were extremely happy and appreciate
Devinuwara temple
the effort taken by the Company. This created a strong bond
3 2019-07-23 Donation cash to Sri Jeewananda primary
between the Company and villagers. school, Welikonda for prefect badge
awarding ceremony
4 2019-08-22 Donation cash to Welikonda
templeSamson international PLC Annual
Report 2018/19
5 2019-10-01 Donation Rubber slippers & Bath mats to
poor children and elders in Dorape area
6 2019-12-27 Donation shoes to poor children in
Baddegama area
7 2020-01-01 Donation Water tank, Rubber carpet
and Rubber hose to Devinuwara temple,
Matara
8 2020-01-11 Donation Rubber carpets to Maha
Viharaya, Ahangama
Donation of rice from the Company paddy field to the Samurdhi beneficiaries 9 2020-01-16 Donation Rubber flooring mat to
Welikonda Jeewananda college
Donation of Company products to temples, schools,
10 2020-01-24 Donation cash to Angulugaha College
needy people & institutions in the village Angulugaha
Company’s rubber mats, hose, other PVC- related and rubber- 11 2020-03-12 Donation School shoes to Little Champs
related products were donated to neighboring schools, preschool, Pilana

95
We have made donations
in cash, kind and our
products to deserving
institutions throughout the
country
Donation of Rubber mats to christ Church Boys’ College Baddegma
Donation to Welikonda School
Donation of cash to Agulugaha School
Donation of shoes to school children in baddegama area
Donation of a water tank, rubber mats and ruber hose to Devinuwara temple
Income generation activities for poor, elderly, disabled

and house-bound people:
There are 45 trimming operation centers in proximity to the
factory. We have arranged these trimming operations and
assigned to
a) Elderly and poor disabled people who are unable go to a
factory for work
b) People (house-bound) whose presence is necessary
Donation of cash and Company products to Katagoda primariy School, Baddegama at their homes as they need to look after their infant
children or elderly parents or invalid inmates.
96
We have been doing this corporate social responsibility activity In summary, the Company incurred Rs. 25 Mn which is
for the last 32 years. Total amount paid to such people is equivalent to 2% of the turnover, in Corporate Social
approximately Rs. 2Mn per month. We give them more than Responsibility Activities towards the villagers in a year.
7Mn of V straps, 650,000 hot water bottles, 100,000 bath
mats, 500,000 soles for trimming for a year. In these 45 2.2) Training facilities to outside students
trimming operation centers work more than 200 of such poor We provide training facilities to students from universities,
elderly, disabled and house-bound people. These products of technical institutions and private and public accountancy
Samson International Plc are delivered to and collected from institutions in the Southern province.
their operation centers daily. Necessary training is given and
also help them to arrange for facilities such as aluminum 3) Trade associations
roofing, cement, bricks etc. for their work. Income for such In order to meet the challenges in the business easily and as a
poor elderly, disabled and house-bound people are generated mitigating step, we have obtained the member of the following
and paid them out the sales proceeds of exports and local sales. associations and obtained their services regularly.
These trimming centers enable them to earn an income while
being at home. 1. National Chamber of Exporters (NCE)
2. Sri Lanka Association of Manufacturers & Exporters of
Sub-Contract Week was held during the week ended 23rd Rubber Products (SLAMERP)
June 2019. During this meeting we discuss the Quality issues, 3. Sri Lanka Chamber of Small& Medium Industries (SLCSMI)
productivity improvements and their welfare matters. Usually 4. Plastic & Rubber Institute (PRI)
all 45 Sub-Contractors participate for this discussion and 5. Ceylon National Chamber of Industries (CNCI)
meeting. We also donate company products for their usage. In 6. Fullerton Industrialists and Investors Association - Kalutara
the meantime, able young villagers are taken into the factory
as full time employees of the Company. More than 80%
We participate in the award competitions organized by
such employees have come from neighbouring villagers. Total
above institutions.
number of employees at present is 456.
4) Employees
Employees commence their daily chores after reciting the five
precepts. Liquor is not allowed even in outings and get-to-
gathers organized by the company and other special occasions
such as the annual cricket and volley ball tournaments. We
have Tamil and Muslim employees who follow their religion
without having any obstacles.
Sub-contract team
Employees commence
We have arranged income
their daily chores after
generation activities for
reciting the five precepts
poor, elderly, disabled and Traditional customs and practices are usually observed by
employees who presented betel leaves to the Managing
house-bound people in the Director and pay last obeisance to him. On the first working
day after new year, machinery in all three factories are
village switched on during the Pirith ceremony and all employees have

97
traditional meals with the top management simultaneously
5) Suppliers
after wishing each other for the new year. All employees
Our major supplier is Samson Compounds (Pvt) Ltd. who
including the top management presents betel leaves to the
provides compounds to our rubber products. So we have
Managing Director and Managing Director gives cash (first
a strong relationship as it is a sister Company which is also
ganu denu) to employees at the end of the new-year ceremony.
situated in Galle. We carry out service evaluation with the major
The Company has a Buddhist Association comprising workers
supplier and inform our ranking to them monthly. For other
and staff members from each section. They organizes all
suppliers, we carry out semi-annual survey for their services
religious activities of the Company. However, due to the
and regular one - to - one communication. We frequently visit
Coronavirus outbreak, we couldn’t organize it for this year.
suppliers locations and our Quality Assurance Department
inspects the quality of all raw material and compounds. All
capital expenditure amount exceeding Rs. 25,000 are approved
by the Board of Directors.
During the year, the Company found a reputed manufacturer

for PVC taps in Malaysia and signed an agreement with them
for an exclusive dealership for supplying water taps for the PVC
On the first working day after New Year

segment.
Signining for exclusive dealership for water taps

Buddhist Association
The details of purchases from sister companies in the Group
The following financial rewards are given to the children of the have been given under Note 27.5 to the Financial Statement on
employees who excelled in their examination. page 180.
Further information and analysis on employees are given under The Company owes to the bank Rs. 283 Mn as at March 31,
Human Capital on page 72. 2020. (Rs. 284 Mn as at March 31, 2019). We have received
the banking facilities from well-established and having high
In order to maintain a strong relationship with the employees credit rating banks and their credit ratings are as follows:
of the other sister companies in the Group, we organized
and participated inter-Company Volley Ball tournament for Bank Rating
the fourth consecutive time at Samson International Volley
Hatton National Bank AA+(lka)
ball court on 01st February 2020. The winners were given
DFCC Bank A+(lka)
Kulatunga Rajapaksa Challenge Trophy for the men and
Bank of Ceylon AA+(lka)
women tournaments. In this tournament, there were 17 teams
Commercial Bank AA+(lka)
from the Group.
Seylan Bank A(lka)
People’s Bank AA+(lka)

98
Natural
Capital
Greenhouse 85 12 Maintaining
Gas Assertion Organic Paddy No. of FSC Timber Trees
harvest in products
ISO 14064-1:2006 Planted
“kuruni” produced
Planting a Sandalwood tree by Managing Director
W e adopt environmentally friendly processes and practices The Company makes every endeavour to protect the
and Samson International Plc is committed to meeting environment as well as our cultural values. Some of the
the requirements of customers by conducting its operations in initiatives taken are as follows:
compliance with legal and other environment requirements.
Mitigating environmental impact has become a key factor 1) Tree planting
during our investment decision making process. This year, the Managing director planted a Sandalwood tree in
Environment Policy the factory at the ceremony organized by the employees for
his achievement of doctor of philosophy. All we know that
“Samson International PLC is committed to minimize the adverse impact trees contribute to their environment by providing oxygen,
of its operations on the environment, utilizing the best environmental improving air quality, climate amelioration, conserving water,
practices, instilling the highest environment values in all its employees preserving soil, and supporting wildlife. During the process
& continual improvement process” of photosynthesis, trees take in carbon dioxide and produce
the oxygen we breathe. Last year too we celebrated our 30th
99
Natural Capital (Contd...)
anniversary of the Company on 14th October 2018, our generated from our operations are segregated at source
employees planted timber trees on the Company premises. and disposed with minimal environmental damage. Energy
Further we also distributed more than 400 timber plants to consumption has been minimized by eliminating energy
villagers at Bogahagoda on this day. waste, installing capacity banks, using transparent roof
sheets and energy saving bulbs. We monitor electricity
2) Obtaining ISO 50001 and ISO 14001 consumption on a daily basis with sub-meters and energy
We obtained ISO 50001 on Energy Management and ISO audits are carried out from time to time. We invested
14001 on Environmental Management. Rs.25 Mn for modernized sound proof Generator. A
training programme was carried out to all employees on
Environmental friendly products electrical safety on 05th February 2019 by an external
The Company gives high priority to produce FSC (Forest electrical engineer.
Stewardship Council) products and we have so far
produced twelve such products. They are hot water Our policy on waste management stems from the
bottles, jar sealing rings, V’ Straps, bath mats, flip philosophy and culture for the reduction of waste.
flop sheets, gum boots, menstrual cups, seed trays, Accordingly, to Reduce paper waste; we encourage
foldable cups and rubber strips. These FSC products are communication via electronic or digital mediums, and
manufactured by using rubber from organic plantations. generate e-reports as much as possible. Printing of hard
We have obtained the following certificates for our copies is restricted and done strictly on a need basis only
products, to protect our customers and the environment. and then too using double-sided printing. We encourage
Reuse; of single-side printed documents, while common
• Forest Stewardship Council – Chain of Custody (FSC- reports are made available for sharing among users.
COC) Certification
• SATRA, UK Certificate for fire retardant mats The details of present sustainability measures of work –
• SATRA, UK Certificate for fire retardant floorings stream of the Company is on the next page.
• Electrical Resistant Certificates from Universities During the year, we received a certificate of
• British Standard ( BS 1970:2012) for hot water bottles commendation in the Presidential Environmental Award
• TUV Certification for hot water bottles competition organized by Central Environmental Authority
on 20th November 2019.
The eco- friendly non- hazardous chemicals under REACH
certification are used for all products in the Company.
3) Sustainability work-stream
We adopt the 3R method of Reduce- Ruse- Recycle. This
method covers in waste rubber and water management.
Our water management policy focuses on recycling and
re-use with state of the art recycling plants established
at our factory. We persistently monitor the quality of
the water discharged from our operations, and these
continue to be within the parameters specified by the
Central Environmental Authority. We all our waste
rubber is recycled and given to another sister Company
to manufacture reclaimed rubber products. Solid waste

100
Natural Capital (Contd...)
Sustainability Causes / Consequences Examples of sustainability Monetary
work – stream measures from the savings
case study (yes/No)
Emission Management • Exhaust gases from boiler, generator, etc • Use dust extractors & collectors Yes
• Emission from manufacturing process • Use fume extractors
e.g – Dust, Fumes • Use pelatise chemicals
Noise Management • Noise generated out of machinery • Replace reciprocating air Yes
operations e.g : Air compressors, power compressors with screw type
generators, banburies mills – heavy which save energy cost
duty machines • Use proper exhaust “silencers”
for generator outlet maintain
heavy machinery with proper
lubrication
Water Management • Waste water from manufacturing • In-house waste water treatment Yes
processes • Re-use for gardening and cooling
purposes
.
Waste Management • Solid waste discharged from • Recycle reject rubber waste and Yes
manufacturing process get reclaim rubber from the process
• Recycle rubber flash and get buffing
dust for the process
• Waste segregation and recycle
through government approved
• Recyclers while generating income
Chemical Management • Chemical discharged from rubber • Comply to REACH standards. Yes
products manufacturing process • Eliminate Polycyclic Aromatic
Hydrocarbons (PAHs) from
manufacturing processes.

Energy Management • Maximum demand control, Yes
staggered basis starts and shut
down of machinery.
• Power factor correction, power
usage analysis and recording
Developing the Southern province

We also continue to be committed to contributing to the national economy, serving the rural areas in the Southern Province by using
local raw materials. Out of our total raw materials cost, 60% is from rubber and it comes from the plantation estates in the Southern
Province. Further this will open direct employment avenues for neighbouring villages of the plantation estates.

101
Intellectual
Capital
12 Rs. 30 mn 23 4
No of new Investment in No of Products No of owned
Products R&D in pipeline brands
launched
Discussion on branding
T he intellectual of the Company includes organizational competitive advantage in the market. Over 25 employees have
capitals, Strength of the SIL and Samson PVC brands and worked for the Company for over thirty years and account for
tacit knowledge, systems and processes. Our research and a vast data base of tacit, accumulated knowledge, including
development capabilities are able to develop and manufacture highly specialized expertise in the core business domain, capital
a wide range of products catering for the customer needs. management and risk management.
The collective knowledge, expertise and experience of It is not possible to assign monetary values to most internally
our employees provide a considerable contribution to our generated intangible assets. However they need to be
intellectual capital and also gives the Company a significant considered as drivers of the value creation process of the

102
Intellectual Capital (Contd...)
Company. Value can be generated by intangibles but is not
always reflected in financial statements. The value of our
business is enhanced by the knowledge of our employees,
value inherent in our relationships and our systems, processes
and procedures.
We have strengthened our Research & Development

Department and given a professional value to it. We also
obtain the services of outside foreign consultants who have
Best Innovative workers
a doctorate in polymer and rubber. Samson International Plc
with Samson Compounds (Pvt) Ltd. signed an agreement Patent rights
with the Chemical & Process Engineering Dept, University The Company received the patent right to manufacture One
of Moratuwa, on for Research & Development activities in Unit Rubber Hot Water Bottle. Further we have already applied
rubber products. From time to time, we obtain services from for the patent right for dry rubber open cell yoga mat.
University of Ruhuna and Colombo. We believe that in order
to be competitive and sustainable in the market, Research &
Development is the crucial factor in our business.
We fundamentally believe
that success comes from
innovative products and
processes, high quality
manufacturing in all our

Branding
products to the markets At present we sell our products with follwing brands.
Rubber
around the globe

l SIL
l Decosil
l DSI rubber parking assessories
Company also conducts a competition for innovative ideas l Mayura Yoga
among the employees. Innovation starts even from the factory l Samson Agro
workers and recognize them well. Last year we received

fourteen innovative ideas and cash awards and certificates were PVC
granted for five best ideas by the Managing Director in the l Samson PVC
presence of all employees. l Jopex
Further, there are some customers who place orders under their
reputed and established brands.

103
Intellectual Capital (Contd...)
The Company has invested a significant amount in branding and promotional activities with the aim of “globalization of SIL rubber
products” and “penetration of Samson PVC products and Jopex taps into the local market”. The Company will invest in branding &
other promotional activities heavily in next year as well.
Advertising in electronic media, newspapers, journals, printing calendars, dealer boards and point of sale materials are some of
them. Further, we printed” Samson PVC “brand name on this year’s uniforms.
New products introduced during the year:
Industry Products introduced

Pharmaceutical • Cosmetic Bottle Lid Insert
• Eco Razer
Food and packaging • Caprolactam free Bottle Cap
• Fat Resistant Jar Sealing Ring
Matting and Flooring • Yoga Mat
Automotive Industry • Convoluted hose
• CDJ Natural Rubber Tube
Construction • Industrial Plug
• L Profile
Agricultural • Long Root Trainer
• Seed Tray Large Pod
Chemical • Reclaim Rubber

104
Corporate
Governance
“ Ethical Business Practices and Good has been clearly established. The Chairman is non-executive
and is responsible for leading the board and ensures to meet
Governance are modern concepts that are
directors obligations and responsibilities for the effectiveness of
increasingly recognized by Buyers, Consumers
the board. He ensures that Board procedures are followed and
and other Stakeholders, related to Products and
all members are effectively participated during meetings. The
Services, in International Trade….” CEO is responsible to the Board for day-today management
of the business, leadership of the executive team and the
A s you are aware, corporate governance is to ensure
execution of the Company’s strategic & Operational plans.
to have an effective, transparent and accountable
Chairman and CEO meet regularly to discuss any issues
management of affairs by the board of directors, which is
pertaining to the Company’s performances.
the highest governing body with the ultimate objective of
protecting the interest of all stakeholders. The Governance
Role of the Board of Directors
structure ensures that the directors take all necessary steps
The Board of the Company is responsible for formulating
to avoid conflicts of interest in their activities and obligations
Company policy and overall business strategy. The
to related parties by disclosure at the board meetings in the
implementation of policy and strategy is done within a
presence of independent directors. Our corporate governance
framework that requires compliance with existing laws and
policies have the clear description of duties and responsibilities
regulations as well as establishing best practices in dealing with
among Board of Directors, clear business roles and strategies,
employees, customers, suppliers and the community at
ethical business conduct, engagement with stakeholders
large. The Directors are committed to maintaining the
through risk mitigation, upholding corporate responsibility
highest standards of corporate governance in the interest
and disclosure of material information in a timely and accurate
of stakeholders having regard to the requirements of the
manner. We are committed to a culture that values ethical
Companies Act No.7 of 2007, Securities and Exchange
behaviour and integrity. Our approach to governance is based
Commission of Sri Lanka and Colombo Stock Exchange and to
on the belief that high quality corporate governance supports
this end, inter alia, have established internal control systems,
long term value creation.
including a comprehensive risk identification, measurement
and mitigation process which is in place designed to carry
The Company’s corporate governance framework is expected
out the business of the Company in an orderly manner, to
to ensure a transparent and good governance system leading
safeguard its assets and secure as far as possible the accuracy
towards enhancing profitability and long-term sustainability.
and reliability of the records and protect the rights and interests
of shareholders and be accountable to them for the overall
The corporate governance of the Company is reflected in its
management of the Company.
strong belief in protecting and enhancing stakeholder value in
a sustainable manner, supported by a sound system of policies
The Board approves all material contracts, investments, disposal
and practices.
fixed assets, annual revenue budgets, strategies and long term
plans in line with technological developments, major capital
Role of the Chairman: project, acquisition, financial structure, quarterly accounts and
Role of the Chairman and Managing Director (who is the Chief
shareholder communications, system of internal control and
Executive Officer) is distinct and the division of responsibility
risk management, senior management structure and their
105
Corporate Governance (Contd...)
responsibilities and succession plan. They are also responsible The Board has delegated responsibility to the Managing
to protect the untarnished reputation of the company from Director who is also the Chief Executive Officer for planning
employees. and guiding the business towards meeting set objectives. As
previously stated, there is a clear demarcation of responsibilities
Our Board agenda includes the following items. and authority between the Chairman and the Chief Executive
• Confirmation of previous minutes Officer/ Managing Director, which ensures a balance of
• Matters arising from the previous meeting power. The Board is responsible for the overall conduct of the
• Review of financial performance Company’s business and has powers, authorities and duties
• Approval of interim and annual financial statements vested in it by and pursuant to the relevant laws of the country
• Review of quarterly internal audit report and Article of Association of the Company.
• Ratification of senior management appointments
• Debtors age analysis Statement of Compliance
• Board sub-committee reports and other matters exclusive Samson International Plc is fully-compliant with the Code of
to the Board Best Practice on Corporate Governance issued in year 2017
• Status updates of major projects jointly by the Institute of Chartered Accountants of Sri Lanka
• Ratification and approval for capital expenditure and the Securities and Exchange Commission of Sri Lanka as
• Statutory compliance report well as the Rules on Corporate Governance published by the
• New Board resolutions Colombo Stock Exchange.
• Statutory reports in the Annual report
• Any other business
Governance framework

106
Governance Structure
External Regulations Internal Regulations
Companies Act No. 07 of 2007 Vision and Values
Code of Best Practice on Corporate Governance Articles of Association of the Company

issued in year 2013 jointly by the Institute of
Chartered Accountants of Sri Lanka and Securities and
Exchange Commission of Sri Lanka
Continues Listing Requirements of the Colombo Internal manuals, standing instructions on

Stock Exchange policy and procedures
G4 Standards for Sustainability reporting issued Board Procedures and Board Sub Committee Terms
by the Global Reporting Initiative
Business Ethics Code of Best Practice on Corporate

The employees are bound to adhere to the following business Governance:
ethics in order to promote good corporate governance in our
business culture. One of the most important
Business Ethics of the Company responsibilities of the
• Safeguard the Company’s assets and Company image.
• Work within applicable laws and regulations. board is to monitor the
• Avoid situations where personal interest might conflict
with the interest of the Company Company’s compliance
• Exercise honesty, objectivity and diligence when
performing one’s duties. with all applicable laws,
rules, codes and standards
• Maintain confidentiality of commercial and price-
sensitive information.
• Strictly avoid giving or accepting any kind of a bribe,
either directly or indirectly.
There are two ways that we adopt the Corporate Governance
• Strictly avoid any kind of sexual harassment.
Practices. namely,
• Strictly avoid making contributions for political funds,
either directly or indirectly.
1) The Code of Best Practice on Corporate Governance
issued in year 2017 jointly by the Institute of Chartered
The Company has implemented a formal whistle-blowing
Accountants of Sri Lanka and the Securities and
procedure and encourages any employee who suspects
Exchange Commission of Sri Lanka
misconduct at work, whether by management, peers or any
other employee, to raise their concerns.
2) The Rule set out in Section 7.10 of the Colombo Stock
Exchange Listing Rules on Corporate Governance.
Transparency is encouraged in all public disclosures, as well
as in the way business and communication take place with all
stakeholders.

107
The extent of adoption of the above code of best practices on Corporate Goverance is explained under the following catagories.
A. Directors E. Institutional Investors
B. Directors‘ Remuneration F. Other Investors
C. Relationship with Shareholders G. Internet of things and Cyber security
D. Accountability and Audit H. Environment, Society and Governance (ESG)
Here the following fundamental aspects of corporate governance are described in the below table.
1) The Code of Best Practice on Corporate Governance issued in year 2017 jointly by the Institute of
Chartered Accountants of Sri Lanka and the Securities and Exchange Commission of Sri Lanka:
Principle SEC & CA Compliance & Implementation Status

Sri Lanka
Code
Reference
A. DIRECTORS
(1) Effective A.1 The Board of Directors comprises 8 Directors of whom 5 are Non-Executive Complied
Board Directors including the Chairman. The three Executive Directors are the
Managing Director and Director/General Manager and Director Marketing
who are also part of the Corporate Management to whom the day to day
running of the organization has been delegated. The Board has appointed
Board Sub Committees to assist in discharge of their collective duties and also
approves policies, governance structures and the delegation of authority to
provide a conductive business environment for effective performance of the
Company. The Board is closely involved in developing strategy and setting
the short, medium and long term goals of the Company and regularly
monitors performance against pre-determined Key Performance Indicators
which include both quantitative and qualitative measures on a regular basis.

(2) Regular A.1.1 Board meetings are held quarterly whilst special Board meetings are Complied
Meetings convened as the need arises. During year ended 31st March 2019,
the Board held 4 scheduled meetings. The following Board Sub
Committees met quarterly:
Board Audit Committee
Board Related Party Transactions Review Committee
However, Board Remuneration Committee held one meeting during the

year under review.
Attendance of Board Meetings and Sub Committee Meetings are

given on pages 127, 139, 141 & 142 of this report.

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(3) Ensure the A.1.2 The Board is responsible for setting strategy, policies and for monitoring Complied
formulation and performance against agreed goals and KPIs. During the year, the Board
implementation of reviewed the Corporate Plan and proposals of the Corporate Management
sound business and approved it.
strategy

(4) Ensure that the A.1.2 The Board has delegated responsibility to the Managing Director Complied
Chief Executive who is also the Chief Executive Officer for planning and guiding the
Officer (CEO) / business towards meeting set objectives and reviews it regularly. The
Managing Board also reviews the performance of Key Management personnel
Director (MD) and and their skills, experience and knowledge to implement strategy.
Management team
possess the skills,
experience and
knowledge to
implement the
strategy
(5) Ensure effective A.1.2 A procedure on selection and appointment of CEO and Key Management Complied
CEO/MD and Senior Personnel approved by the Board is in place.
Management
succession strategy

A. DIRECTORS
(6) Ensure effective A.1.2 Board Audit Committee reviews Internal Audit reports submitted by the Complied
systems to Internal Auditors and monitors follow up action. The Internal Audit function
secure integrity of of the Company is carried out by Ms Ernst & Young, Chartered Accountants.
information, internal They directly report to the Chairman of the Audit Committee. The Audit
controls and risk Committee Charter gives guidelines on audit-related matters.
management
(7) Ensure A.1.2 The Board and the Audit Committee reviews our compliance statements Complied
compliance with in addition to verifications carried out by our internal audit assistant.
laws, regulations
and ethical
standards
(8) Ensure all A.1.2 The Articles of Association of the Company require the Directors to take Complied
stakeholder decisions, taking into account the interests of customers, shareholders,
interests are employees and the community. Additionally, the Group Finance Committee
considered in and Group HR Committee as well as the Board Related Party Transactions
corporate decisions Review Committee are in place in order to uphold the interests of these key
stakeholders.

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(9) Ensure that A.1.2 The Board Audit Committee and the Board review accounting policies Complied
the Company’s annually or as and when required to ensure that they are in line with the
values and business model of the Company and evolving international and local
standards are set accounting standards and industry best practices.
with emphasis on
adopting
appropriate
accounting
policies and
fostering
compliance
with financial
regulations
(10) Fulfill such A.1.2 The Board is committed to fulfill its functions in line with the laws, Complied.
other Board regulations and good governance practices adopted by the Company.
functions as are
vital, given the
scale, nature
and complexity
of the business
concerned
(11) Act in A.1.3 The Board has put in place a framework of policies, procedures and a risk Complied.
accordance with management framework to ensure compliance with relevant laws, other
laws statutory guidelines and international best practices with regard to the
relevant to the operations of the Company. The Board obtains independent professional
organization and advice as and when necessary in accordance with the Board approved policy
procedure on Obtaining Independent Professional Advice and these functions are
for Directors to coordinated through the Company Secretary.
obtain independent
professional
advice at company
expense
(12) Access to A.1.4 All Directors have the opportunity to obtain the advice and services of the Complied.
and appointment Company Secretary, Messes. PWC, is responsible for ensuring follow up of
or removal of Board procedures, compliance with relevant rules and regulations, directions
Company and statutes, keeping and maintaining Minutes and relevant records
Secretary of the Company.
The Articles of Association of the Company specify that the appointment

and removal of the Company Secretary should be by resolution involving
the entire Board.

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(13) Independent A.1.5 The Directors of the Company have no vested interests and take decisions Complied
Judgment on matters before them using independent judgment.
(14) Dedication A.1.6 The Board of Directors were allocated adequate time and effort before a Complied
of adequate meeting to review Board papers and call for additional information
time and effort and clarification, and to follow up on issues consequent to the meeting.
of the Directors
Therefore, they are able to familiarize with the business changes,
operations, risks and controls which ultimately help to satisfactorily
discharge the duties and responsibilities owed to the Company.

(15) Training for A.1.7 The MD in consultation with the Chairman recommends Complied
Directors Directors to attend training sessions/seminars.

A.2 DIVISION OF RESPONSIBILITIES BETWEEN CHAIRMAN AND Managing Director
(16) Conducting A.2 The positions of the Chairman and the MD have been separated in line with Complied
the business of the best practices in order to maintain a balance of power and authority.
Board separately;
to the executive The Chairman is a Non-Executive Director whilst the MD is an
responsibilities of Executive Director.
the management
of the Company

A.3 CHAIRMAN’S ROLE
(17) Chairman’s A.3 The Chairman’s Functions and Responsibilities which include all aspects Complied
role in preserving specified in the Code and the continuing listing requirements of the CSE.
good corporate
governance

(18) Conduct Board A.3 Board proceedings are conducted according to the Agenda. The papers for Complied
proceedings in a discussion and the Agenda are circulated Seven (07) days prior to the meeting.
proper manner
A.4 FINANCIAL ACUMEN

(19) Availability of A.4 Financial acumen has been a key attribute of the successful careers of the Complied
financial acumen following Directors
and knowledge to Mr. T.K. Bandaranayake
offer guidance on Mr. G.H. Wimalasena
matters of finance Mr. D.G.P.S. Abeygunawardana
Their profiles are on the pages 31 and 32.

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A.5 BOARD BALANCE
(20) Non Executive A.5.1 & The Board comprises the 5 Non-Executive Directors including the Chairman Complied
Directors of A.5.2 and 3 Executive Directors who are the CEO / MD, the Director/General Manager
sufficient calibre and Director Marketing. The Non-Executive Directors are professionals/
and number academics/business leaders, holding senior positions in their respective
fields and are therefore deemed to be of sufficient calibre. As the majority
of the Board comprises Non-Executive Directors, their opinions and views
carry significant weight in the Board decisions.

(21) Independence A.5.3 2 of the Non-Executive Directors are independent of management and free Complied
of Non-Executive of any business or other relationship that could materially interfere with
Directors or could reasonably be perceived to materially interfere with the
exercise of their unfettered and independent judgment.

(22) Annual A.5.4 Annual declarations of independence or non-independence have been Complied
declarations of obtained from the Independent Directors for 2019/20.
independence from
Directors

(23) Annual A.5.5 The Board makes an annual evaluation of independence of the Directors Complied
evaluation of based on the submission of the annual declarations. Based on these, the
independence following Directors are deemed to be independent:
Mr. T.K. Bandaranayake
Mr. G.H. Wimalasena
There were no Directors deemed Independent where all criteria were not met.

(24) Senior A.5.6 If an alternate Director is appointed by a Non-Executive Director such Complied
Independent & Alternate Director should not be an executive of the Company. If an Alternate
Director A.5.7 Director is appointed by an Independent Director, the person who is appointed
also should meet the criteria of independence and the provision on minimum
number of Independent Directors also should be satisfied.
In the event the Chairman and CEO is the same person, the Board should
appoint one of the Independent. Non-Executive Directors to be the
‘Senior Independent Director’ (SID) and disclose this appointment in the
Annual Report. At present Chairman and CEO are no the Same person.
(25) Senior A.5.8 The Senior Independent Director should make himself available for Complied
Independent confidential discussions with other Directors who may have concerns which
Director (SID) they believe have not been properly considered by the Board as a whole and
meeting with other which pertain to significant issues that are detrimental to the Company.
Directors At present SID is not appointed.
(26) Chairman to A.5.9 Chairman met Non-Executive Directors without the Executive Directors being Complied
hold meetings present, on a need basis.
with Non-Executive
Directors,
without Executive
Directors being
Present
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(27) Recording of A.5.10 Board Minutes are prepared in order to record any concerns of the Board as Complied
Directors’ concerns a whole or those of individual Directors regarding matters placed for their
in Board Minutes approval/guidance/action. These Minutes are circulated and formally approved
at the subsequent Board meeting, Additionally, Directors have access to the
past Board papers and Minutes in case of need at all times.
If a Director resigns over an unresolved issue, the Chairman will bring the
issue to the attention of the Board. The Director concerned is also required
to provide a written statement to the Chairman for circulation to the Board.

A.6 SUPPLY OF RELEVANT INFORMATION
(28) Provision of A.6.1 The management provides comprehensive information including both Complied
appropriate and quantitative and qualitative information for the quarterly Board Meetings,
timely information generally 7 days prior to the Board / Sub Committee meetings. The Directors
also have free and open access to Management at all levels to obtain further
information or clarify any concerns they may have.
As described above, they also have the right to seek independent
professional advice at the Company’s expense and copies of advice obtained
in this manner are circulated to other Directors who request it.

(29) Chairman to A.6.1 All Directors are adequately briefed on matters arising at Board meetings Complied
ensure all Directors through comprehensive Board papers. Additionally, the relevant members
are properly of the Management team are on standby for further clarifications as may be
briefed on issues required by Directors or will make presentations at Board meetings. Any
arising at Board Director who does not attend a meeting is updated on proceedings prior to
meetings the next meeting through formally documented Minutes of meetings.
A separate Board paper is prepared highlighting the items which need to be
completed and need follow-up action of the previous meetings.
This is taken up immediately after confirmation of Minutes.

(30) Board papers A.6.2 As described above, Board papers are generally circulated 7 days before the Complied
and agenda to be meeting. There is provision for circulation of urgent papers within a shorter
circulated 7 days time frame and also for approval of matters by circulation, but such instances
prior to meetings. are the exception and not the rule.
A.7 APPOINTMENTS TO THE BOARD

(31) Formal A.7.1 New Directors including Executive and Non-Executive Directors are appointed Complied
and transparent by the Board. To support this process a Board approved Policy on Selection,
procedure for new Nomination, Appointment and Election of Directors is in place.
Appointments
through an
established
Nomination
Committee

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(32) Annually A.7.2 The Board annually assesses its composition to ascertain whether the Complied
assess Board combined knowledge and experience of the Board match the strategic
composition demands facing the Company and is satisfied that it complies with the criteria.
(33) Disclosure A.7.3 All new appointments are communicated to the shareholders via the Complied
of information to Colombo Stock Exchange in the English language. The profiles of the current
shareholders upon Directors are given on page 30 to 37 in this report.
appointment of
new Directors

A.8 RE-ELECTION
(34) All Directors A.8 As per the Articles of Association of the Company, 1/3rd of the Directors and Complied
should submit also those who are more than 70 years old, should retire at each Annual
themselves for General Meeting and be subject to re-election.
reelection at Such Directors who retire are those who held office for the longest time
regular intervals period since the election / re-appointment. In accordance with this provision,
all the Directors other than following retire and offer themselves for re-election:
Mr. D.G.P.S. Abeygunawardana, Mr. D.D.A Rajapaksa
The Board is actively engaged in succession planning for both Executive and
Non-Executive roles to ensure that Board composition is periodically
renewed and that the Board retains its effectiveness at all times.

(35) Non Executive A.8.1 Non-Executive Directors are appointed for re-election at Annual General Complied
Directors are Meetings in terms of Articles of Association.
appointed for
specified terms
subject to
reelection
(36) All Directors A.8.2 All Non-Executive Directors including Chairman stand for re-election at Complied
including Chairman Annual General Meetings.
to be subject to
re-election at first
opportunity after
appointment and
re-election at least
every 3 years
thereafter
(37) Resignation A.8.3 In the event of a resignation of a director prior to completion of his Complied
appointed term, the Director should provide a written communication to
the Board of his reasons for resignation.

A.9 APPRAISAL OF BOARD PERFORMANCE
(38) Appraisal of A.9.1 The Board annually appraises their own performance to ensure that they are Complied
Board Performance discharging their responsibilities satisfactorily.

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(39) Appraisal A.9.2 The Board Sub Committees follow the same process. Complied
of Board Sub
Committees
(40) Disclosure A.9.3 As explained in A.9.1 & A.9.2 above Complied

of the method of
appraisal of the
Board and Board
Sub Committee
Performance
A.10 DISCLOSURE OF INFORMATION IN RESPECT OF DIRECTORS

(41) Annual Report A.10.1 Information specified in the Code with regard to Directors are disclosed Complied
to disclose specified within this Annual Report as follows:
information Name, qualifications, expertise, material business interests and brief profiles
regarding Directors are given on page 30 to 34 Details of whether a Director is Executive,
Non- Executive / or Independent, Non Independent are given on page 30 to 34.
Related Party Transactions are given on page 183 under note 27.
Membership of Board Sub Committees is given on page 139 to 143 and
attendance at Board Meetings and Board Sub Committee meetings are given
on pages 127, 139, 141 & 142.

A.11 APPRAISAL OF CHIEF EXECUTIVE OFFICER / MANAGING DIRECTOR
(42) Set reasonable A.11.1 The Board discussed and set financial and non-financial targets to be Complied
financial and achieved during the year by the MD with reference to the short, medium
nonfinancial targets and long term objectives of the Company at the beginning of 2019/20.
to be met by the
CEO / MD

(43) Evaluate A.11.2 The performance evaluation of the Managing Director was carried out by the Complied
performance of Board, HR & Remuneration Committee with reference to targets and goals
the CEO/MD with achieved by the Company which was reported to the Board.
reference to targets

B. DIRECTORS’ REMUNERATION
B.1 REMUNERATION PROCEDURE
(44) Appointment B.1.1 The Board has established a Board Remuneration Committee to develop Complied
of a Remuneration policies and determine remuneration for the Directors and Key Management
Committee Personnel respectively. No Director is involved in deciding his own
remuneration. The Terms of Reference of this committee complies with
Schedule C of the Code and other investor guidelines. In support of this
requirement, a Board approved Reward Management Policy for
Key Management Personnel is in place. Further information regarding the
Board Remuneration Committee is given in the Board Remuneration
Committee Report on page 141.
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(45) Remuneration
Committee B.1.2 & The Board Remuneration Committee comprises the following Directors who Complied
to comprise B.1.3 are all Non-Executive Directors.
exclusively Non Mr. G.H. Wimalasena (Chairman) - Retired on 14th August 2020
Executive Mr. T.K. Bandaranayake
Directors
(46) Remuneration B.1.4 Remuneration of Non-Executive Directors is recommended by the Board Complied
for Non- Executive Remuneration Committee for approval of the Board in line with market
Directors practice. A Board approved Policy on Directors’ Remuneration is in place.

(47) Remuneration B.1.5 Remuneration of Executive Directors is determined by the Board Complied
of Executive Remuneration Committee who has access to professional advice from
Directors within or outside the company in formulating their proposals which are then
discussed with the Chairman. A Reward Management Policy for
Key Management Personnel approved by the Board is in place.

B.2 THE LEVEL AND MAKE UP OF REMUNERATION
(48) Remuneration B.2.1 & Remuneration for Executive Directors is designed to attract, retain and Complied
for Executive B.2.2 motivate the Executive Directors as determined by the Board Remuneration
Directors should Committee. Their remuneration comprises a fixed salary component, which
attract, retain and includes perquisites and allowances, The Board Remuneration Committee
motivate takes into account market practices and seeks professional advice when
required in order to discharge its responsibilities.

(49) Positioning B.2.3 The Board Remuneration Committee reviews the Company’s remuneration Complied
company levels in relation to other Companies in the country annually.
remuneration levels
relative to other
companies
(50) Performance B.2.4 A performance related element of remuneration for Executive Directors Complied
related elements of has been implemented.
remuneration for
Executive Directors

(51) Share option B.2.5 There was no share option scheme during the year under review. Complied
Schemes

(52) Designing B.2.6 A scheme of performance related remuneration is in place. Complied
schemes of
performance
related
remuneration

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(53) Early B.2.7 Not applicable to the Board except for the MD and the Director/General Complied
termination of Manager who are employees of the Company and their terms of
Directors employment are governed by the respective contracts of service.

(54) Dealing with B.2.8 Refer to B.2.7 above Complied
early termination
(55) Levels of B.2.9 The Board & Remuneration Committee determines the levels of remuneration Complied
remuneration for for Non-Executive Directors taking into account the time commitment and
Non -Executive responsibilities of their role and market practices. A Board approved policy
Directors on Directors’ Remuneration is in place.

B.3 DISCLOSURE OF REMUNERATION
(56) Composition B.3.1 The composition of the Board & Remuneration Committee and its report is Complied
of Board & given on page 145 & 141. The aggregate remuneration to Executive and
Remuneration Non-Executive Directors are given in Note No. 8 to the Financial
Committee, Statements on page 172.
Remuneration Policy Names of the Directors of the Board & Remuneration Committee are
and disclosure disclosed on pages 30 and 141 the Annual Report.
of aggregate
remuneration paid
to Directors

C. RELATIONS WITH SHAREHOLDERS
C.1 CONSTRUCTIVE USE OF THE ANNUAL GENERAL MEETING (AGM) AND CONDUCT OF GENERAL MEETINGS
(57) Constructive C.1 The Annual General Meeting is the main forum of contact between small Complied
use of the AGM shareholders and the Board. The Annual Report is circulated to all
& Other General shareholders 15 working days prior to the AGM. Additionally, the Chairman’s
Meetings Review is translated into Sinhala each year.
(58) Count of all C.1.1 All proxy votes lodged, together with the votes of shareholders present at Complied
proxy votes lodged the AGM are considered for each resolution.

(59) Separate C.1.2 A separate resolution is proposed at the AGM for each substantially separate Complied
resolutions for each issue. The adoption of the report and accounts is proposed as a separate
substantially resolution.
separate issue

(60) Availability C.1.3 All Board Sub Committee Chairpersons are present at the AGM to answer Complied
of Board Sub any questions raised at the AGM and will respond when requested to do so
Committee by the Chairman.
Chairperson at
AGM

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(61) Circulation of C.1.4 Notice of the AGM and related papers are sent to shareholders at least 15 Complied
Notice of AGM working days prior to the meeting in accordance with the regulations.
and related
documents to
shareholders

(62) Summary C.1.5 A summary of the procedures governing voting at the AGM is provided Complied
of procedures in the Proxy Form, which is circulated to shareholders 15 working days prior
governing voting to the AGM.
at the AGM
C.2 COMMUNICATION WITH SHAREHOLDERS

(63) Channel C.2.1 The AGM is also a key forum for contact with shareholders and the Complied
to reach all Company has a proud history of well attended AGMs where shareholders
shareholders of the take an active role in exercising their rights. The Chairman’s review is
Company translated into Sinhala as well to facilitate greater communication with
shareholders. The Company posts on its website (www.samsonint.com)
& CSE website copies of annual reports, interim reports etc.

(64) Policy and C.2.2 The Company provides fair disclosure with emphasis on the integrity, Complied
methodology for accuracy, timeliness and relevance of the information provided. A Board
communication approved Policy on Communication is in place, in which provisions for
with shareholders communication with shareholders are contained.

(65) Implementation C.2.3 Shareholders are consulted on their preference to receive the Annual Report Complied
of the Policy and from the Company either by means of a Compact Disk or in printed form.
methodology for Shareholders may elect to receive Annual Report from the Company in
communication printed form free of charge at any time.
with shareholders
(66) Contact C.2.4 & Shareholders may, at any time, direct questions to and request for publicly Complied
person in relation to C.2.6 available information from the Directors or management of the Company.
shareholder matters They may also provide their comments and suggestions to the Directors or
management through the Company Secretary.
(67) Process C.2.5 The Company Secretary maintains a record of all correspondences received. Complied
to make all They directs as soon as practicable such correspondences to the Board,
Directors aware individual Directors or the relevant officers as applicable.
of major issues
and concerns of
shareholders
(68) Process of C.2.7 Please refer C.2.5 above. Complied

responding to
shareholder matters

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C.3 MAJOR AND MATERIAL TRANSACTIONS

(69) Disclosure of C.3.1 During the year 2019/20, the Company did not engage in or commit any Complied
major transactions “Major Related Party Transaction” which materially affected the Company’s
net asset base. This has been disclosed in the report of the directors.

D. ACCOUNTABILITY AND AUDIT
D.1 ASSESSMENT OF THE COMPANY’S FINANCIAL POSITION AND PERFORMANCE
(70) Balance and D.1 The Company’s position and prospects have been discussed in detail in the Complied
understandable following sections of this Annual Report.
information to Chairman’s Review is given on pages 24 to 25.
shareholders Managing Director’s Review is given on pages 27 to 29.
Financial capital is given on pages 64 to 70.
(71) Presence of D.1.1 Company has presented balanced and understandable financial statements Complied
a balanced and which gives a true and fair view quarterly and annually. In the preparation
understandable of Financial Statements, company has complied with the requirements of
assessment of the Companies Act No 07 of 2007 and requirement of Sri Lanka Accounting
Company’s financial Standards and Securities and Exchange Commission.
position, performance
and prospects
in the Annual report

(72) Interim reports, D.1.2 Interim reports were published within 45 days of each quarter end which Complied
price-sensitive included information to assist shareholders gain an understanding of the
public reports, state of affairs of the Company. Price sensitive information was disclosed in a
regulatory reports comprehensive but concise manner to the Colombo Stock Exchange on a
and statutory timely basis. Reports required by the regulators including Inland Revenue,
information Registrar of Companies, Colombo Stock Exchange and Central Bank were
requirements all filed in a timely manner in compliance with their requirements and these
provided sufficient information for the user to obtain a balanced assessment
of the Company`s operations.
(73) MD’s & Head D.1.3 Head of Finance and two other Directors (MD & Director/General Manager)
of Finance’s approval have signed the Financial Statements on behalf of the Board.
on financial Statements
prior to Board approval
(74) Declaration in D.1.4 The Annual Report of the Board of Directors on the Affairs of the Company Complied
Annual Report of on pages 145 to 150 contains the declarations as required by the Code.
the Board of
Directors on the
Affairs of the
Company

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(75) Responsibilities D.1.5 The Statement of Directors’ Responsibility for Financial Reporting and Report Complied
of the Board for the of the Auditors which includes a statement about their reporting
preparation and responsibilities are provided on pages 144 & 151 respectively.
presentation of
Financial Statements
and statement by
the Auditors about
their reporting
responsibilities

(76) Include a D.1.6 The Management Discussion and Analysis contained in pages 64 to 104 Complied
Management (Capital Management Report) and covers the information specified in the
Discussion & Code as given below; Global Impact, Industry structure and development,
Analysis opportunities and threats, Risks, Internal control systems and their adequacy,
Social and environmental protection activities carried out by the Company,
Financial performance & analysis, Material developments in human
resource/industrial relations and prospects for the future.
(77) Summon on D.1.7 This situation has not risen Complied

EGM to notify
serious loss of
capital .

(78) Related Party D.1.8 There is an approved documented process identifying related parties, type Complied
Transactions of related party transaction and the mechanism to ensure that no favourable
treatment is granted to said parties in order for related parties to avoid any
conflict of interest in this regard. An effective and comprehensive system of
Internal Control for identifying, recording and disclosing related party
transactions too is in place. Directors and KMPs submit declarations declaring
their transactions to the Company on a annual basis. All related party
transactions as defined in Sri Lanka Accounting Standards - LKAS 24
(Related Party Transactions) are disclosed in Note No. 27 to the Financial
Statements on page 183.

D.2 RISK MANAGEMENT AND INTERNAL CONTROL
(79) Maintain a D.2.1 The Board is responsible for formulating and implementing appropriate and Complied
sound system of adequate internal control systems. The Board Audit Committee has
internal control to responsibility to the Board to ensure that the system of internal controls
safeguard is sufficient and effective.
shareholders’
investments and the
Company’s assets

(80) Review need D.2.2 The Company has established an Internal Audit function carried out by Complied
for Internal Audit in-house staff as well as outsourced to Messrs Ernst & Young Chartered
Function Accountants.
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D.3 AUDIT COMMITTEE

(81) Establish D.3 The Company has established its Board Audit Committee in keeping with Complied
arrangements good governance. The principal responsibilities of the Board Audit
for selection and Committee include oversight over financial reporting, internal controls and
application of monitoring auditor independence. Its duties include gaining assurance on
accounting control over financial processes, integrity of the Company’s financial
policies, financial reports, monitoring performance, objectivity and independence of the
reporting and External Auditor and reviewing work of the internal Auditor. The Board
internal control Audit Committee Report is given on page 139 in the Annual Report.
principles

(82) Composition D.3.1 The Board Audit Committee consists of three Non-Executive Directors and Complied
and Terms of is chaired by an Independent Non-Executive Director. Members are selected
Reference for to provide a broad set of financial, commercial and other relevant experience
Board Audit to meet the Committee’s objectives. The Executive Director/General Manager,
Committee Head of Finance, representatives of the External Auditors are invited to
attend the meetings.
(83) Review of D.3.2 The Committee has a key oversight role in relation to the External Complied
External Audit Auditor Messrs Edirisinghe & Co, whose primary relationship is with the
function and Committee.
relationship with The Company’s Auditor Independence Policy ensures that the independence
External Auditors and objectivity of the Auditor is not impaired. The Committee has
and terms of responsibility for recommending to the Board the appointment /
reference re-appointment of the External Auditors and reviewing the nature, scope
and results of the annual External Audit.
(84) Disclosures D.3.3 The Annual Report of the Board of Directors on the Affairs of the Complied
regarding Board Company given on pages 145 to 150 provides the disclosures such
Audit Committee as the composition of the Board Audit Committee & a statement
regarding the independence of the Auditors.

D.4 RELATED PARTY TRANSACTIONS REVIEW COMMITTEE
(85) Related Party D.4.1 Company is adhering to LKAS 24 and Transactions entered into with related Complied
Transactions parties during the year is disclosed in note 27 to the financial statements (page 183).
(86) Composition D.4.2 The Related Party Transactions (RPT) Review Committee of Samson Complied
of Related Party International PLC acts as the company’s RPT review committee and consists of
Transactions Mr T. K. Bandaranayake (Chairman)
Committee Mr G. H. A. Wimalasena - Retired on 14th August 2020
(87) Terms of D.4.3 Related Party Transactions Review committee has written terms of reference Complied
Reference dealing with its authority and duties. RPT review committee report describing
the duties, task and attendance of the committee appear on page 142.
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D.5 CODE OF BUSINESS CONDUCT AND ETHICS

(88) Code of D.5.1 Codes of Conduct and Ethics are in place for the Directors and employees. Complied
business conduct
and ethics for
Directors and staff
D.6 CORPORATE GOVERNANCE DISCLOSURES

(89) Disclosure of D.6.1 The Corporate Governance Report given on pages 105 to 127 provides Complied
adherence to information regarding Corporate Governance practices in the Company
Corporate which are in compliance with the Code of Best Practice on Corporate
Governance Governance issued jointly by the Securities Exchange Commission of Sri Lanka
and the Institute of Chartered Accountants of Sri Lanka.

E. SHAREHOLDERS – INSTITUTIONAL INVESTORS
E.1 SHAREHOLDER VOTING
(90) Encourage E.1 The Company has a history of active shareholder involvement at general Complied
voting at AGM meetings and all shareholders are regularly encouraged to state their
intentions to vote.

(91) Regular E.1.1 A listed company should conduct a regular and structured dialogue with Complied
structured shareholders based on a mutual understanding of objectives. Arising from
dialogues with such dialogue, the Chairman should ensure the views of shareholders are
institutional communicated to the Board as a whole.
investors
E.2 EVALUATION OF GOVERNANCE DISCLOSURES

(92) Encourage E.2 Institutional investors are kept apprised of the Company’s governance
institutional practices through the Annual Report and any new initiatives are highlighted
investors to at regular meetings to ensure that due weightage is given to good
give due weight corporate governance.
to relevant
governance
arrangements

F. OTHER INVESTORS
F.1 INVESTING / DIVESTING DECISION
(93) Individual F.1 The Annual Report contains sufficient information for a potential investor to Complied
shareholders are carry out their own analysis. This, together with the interim financial
encouraged to do statements provided each quarter, provide sufficient information to enable
their own analysis or retail investors to make informed judgments regarding the performance of
seek independent the Company. Shareholders can contact, the Company Secretary for further
advice information if required.

122
Sri Lanka
Code
Reference
F.2 SHAREHOLDER VOTING

(94) Encourage F.2 It is a tradition at Company to encourage retail investors to participate and Complied
shareholders to vote at the AGM. Additionally, they are encouraged to participate in the
participate and Company’s affairs by way of submitting proposals.
vote at the AGM
G. INTERNET OF THINGS AND CYBERSECURITY

(95) Cyber security G.1 Disaster recovery plan is implemented with hardware infrastructure. Complied
risk of sending All the data backups are maintained by Group IT.
and receiving
information
H. ENVIRONMENT, SOCIETY AND GOVERNANCE (ESG)

(96) Provide H.1.1 Annual report contains sufficient and relevant information of ESG to
Sufficient assess how risks and Opportunities are recognized, managed, measured
information relating and reported in pages 128 to 138.
to ESG risks
2. The Rule set out in Section 7.10 of the Colombo Stock Exchange Listing Rules on Corporate
Governance:
This section reflects the Company’s level of conformity to CSE’s Listing Rules. This comprises the following fundamental
principles and their application has been explained in the table under the following catagories.
• Non-Executive Directors
• Independent Directors
• Disclosures Relating to Directors
• Remuneration Committee
• Audit Committee
• Related Party Transaction Review Committee

123
CSE Rule No. Subject Applicable Requirement Compliance Status
7.10.1(a) Non- Executive Directors At least 1/3 of the total number of Compliant
Directors should be Non-Executive Directors 5 out of the 8 Board
members are
Non- Executives.
7.10.2(a) Independent Directors 2 or 1/3 of Non-Executive Directors, Compliant

whichever is higher should be independent There are 2 Independent
Directors and 5
Non- Executive Directors.
7.10.2(b) Independent Directors Each Non-Executive Director should submit Compliant

a declaration of independence/ Independence of Directors
non-independence has been determined in
accordance with CSE.
7.10.3(a) Disclosure relating to Directors a. The Board shall make a determination Compliant
annually as to the independence or All Independent,
non independence of each Non-Executive Directors
Non-Executive Director have submitted declarations
for their independence.

b. Names of independent Directors Compliant This was
should be disclosed in the Annual Report disclosed on page 30.
7.10.3(b) Disclosure relating to Directors In the event a Director does not qualify as Not Applicable this year
independent, but if the Board is of the opinion
that the Director is nevertheless independent,
shall specify the criteria not met and the basis
for the determination in the Annual Report
7.10.3(c) Disclosure relating to Directors A brief resume of each Director should be Compliant
included in the Annual Report including Please refer the Profile of the
the area of expertise Directors in the Annual
Report on page 30.
7.10.3(d) Disclosure relating to Directors Upon appointment of a new Director Compliant

to the Board, a brief resume of each
Director should be provided to the CSE.

7.10.5 Remuneration Committee A listed Company shall have a Compliant

Remuneration Committee
7.10.5(a) Composition of Remuneration Shall comprise Non-Executive Directors, Compliant

Committee a majority of whom shall be independent 2 out 3 Non-Executive
directors are independent.

124
CSE Rule No. Subject Applicable Requirement Compliance Status
7.10.5(b) Report of Remuneration The Remuneration Committee shall Compliant

recommend the remuneration
of Chief Executive Officer and
Executive Directors
7.10.5(c) Disclosure in the Annual Report The Annual Report should set out:
relating to Remuneration a. Names of Directors comprising Compliant
Committee the Remuneration Committee
b. Statement of remuneration policy Compliant
c. Aggregate remuneration paid to Compliant
Executive & Non-Executive Directors
7.10.6 Audit Committee The Company shall have an Audit Committee Compliant
7.10.6.(a) The composition of a. Shall Comprise Non-Executive Directors, Compliant

Audit Committee a majority of whom can be independent 2 out 3 Non-Executive
directors are independent.
b. Chief Executive officer and the chief Compliant

Financial Officer should attend Audit
committee meetings
c. The Chairman of the Audit committee or He is a member of

One member should be a member of a Institute of Chartered
professional Accounting body Accountants of Sri Lanka
7.10.6.(b) Audit Committee functions Overseeing of the Compliant

(i) Preparation, Presentation and adequacy of Audit Committee oversees
disclosures in the financial statements in the integrity of the
accordance with Sri Lanka Accounting financial statements.
Standards.
(ii) Compliance with financial reporting Compliant

requirements, information requirements of Audit Committee oversees
the Companies Act and other relevant the requirement of the
financial reporting related regulations Companies Act and
and requirements other regulations.
(iii) Processes to ensure that the internal Compliant

controls and risk management are Audit Committee oversees
adequate, to meet the requirements of effectiveness of internal
the Sri Lanka Auditing Standards. control and risk
management.


125
Rule No. Subject Applicable Requirement Compliance Status

(iv) Assessment of the independence and Compliant
performance of the external auditors. Audit Committee oversees
independence and
performance of the external
auditors.

(v) Make recommendation to the board Compliant
pertaining to appointment, re-appointment Audit Committee
and removal of external auditors and to makes such
approve the remuneration and terms of recommendations.
engagement of the external auditors
7.10.6.(c) Disclosure in the Annual Report a. Names of Directors comprising the Audit Compliant
relating to Audit Committee Committee.

b. The Audit Committee shall make a Compliant
determination of the independence of
the Auditors and disclose the basis
for such determination.
c. The Annual Report shall contain a Report Compliant

of the Audit Committee setting out the
manner of compliance of the function.
9.2.2 Disclosure relating to Combination of non-executive directors Compliant

Related Party Transactions and independent non-executive directors
Review Committee The Committee comprises of
two Independent Non-
Executive Directors, one Non-
Executive Director
9.2.3 Separate Committee to be formed for the Compliant

Company or the Listed Parent’s Committee
to be used. A separate Related Party
Transactions Review
Committee was formed for
the Company.
Function of the Committee Compliant
The Related Party

Transactions Review
Committee Report sets out
the functions of the
Committee on page 142.

126
Rule No. Subject Applicable Requirement Compliance Status

9.3.2. (c) Disclosure in the Annual Report The Annual report shall contain a Report of Complied
the Related Party Transactions Review
committee in the prescribed manner. Please refer Related Party
Transactions Review
committee report on
page 142.
The Attendance of the Board of Directors:

Name of Director Status 22nd May 10th Aug 12th Nov 08th Feb No of
2018 2018 2018 2019 Attendance
Dr. D S Rajapaksa NE √ √ √ √ 4/4
Mr. D K Rajapaksa E √ √ √ √ 4/4
Mr. D R Rajapaksa NE √ √ √ √ 3/4
Mr. T K Bandaranayake NE/I √ √ √ √ 4/4
Mr. G H A Wimalasena NE/I √ √ √ √ 4/4
Mr. D G P S Abeygunawardana E √ √ √ √ 4/4
Mr. D D A Rajapaksa E √ √ X √ 3/4
Mr. D C J Rajapaksa NE √ X √ √ 3/4
Please also note that under status column “E” = Executive, “ NE” = Non – Executive and “ I” = Independent
The Attendance of Audit Committee, Remuneration Committee and Related

Party Transactions Review Committee:
The attendance of the Audit Committee Report, Remuneration Committee Report and Related Party Transaction Review
Committee are on page 139, 141 and 142 respectively with their individual committee reports.

127
Risk
Management
“The Company reviews and assesses the At a strategic level, our risk management objectives are
significant risks on a regular basis to ensure

• To identify the Company’s significant risks and
identification of any situation or circumstance
formulate the Company’s Risk Appetite and ensure
that would adversely affect the achievement of
that business profile and the plans are consistent
the Company’s objectives. with it.
• To optimize risk/return decisions by taking them as
R isk could arise in all our business activities. The Company
closely as possible to the business, while establishing
reviews and assesses the significant risks on a regular basis
strong and independent review and challenge
and ensures that there is a system of internal control in place.
structures.
We have to proactively identify the risk, assess it and respond
• To ensure that business growth plans are properly
to it by allocating required resources. This could elaborate in
supported by effective risk infrastructure.
the areas of risk identification, risk assessment, risk response
• To manage risk profile to ensure that specific
and risk reporting methodologies under five risk categories
financial deliverables remain possible under a range
namely Macroeconomic, Competitor and Market, Operational,
of adverse business conditions.
Financial and Others. The risk management process has
• To help employees improve the control and co-
been designed to ensure identification of any situation or
ordination of risk taking across the business.
circumstance that would adversely affect the achievement of
the Company’s objectives.
Internal and external audits are crucial in the risk management
process. Reports on these audits are reviewed and action taken
At present the following reviews the risks regularly.
to manage any risks that have been identified. Significant audit
findings by the Auditors are immediately reviewed by the Board
1) The Group Directors reviews Company’s risk profile
appointed Audit Committee. The Company’s system of internal
and provide guidance on required risk responses on
controls covers all policies and procedures, enabling significant
a monthly basis at the time reviewing the monthly
strategic and operational risks to be managed. The internal
accounts.
audit team meets with the Finance Department every quarter
2) The Audit Committee reviews and monitors the
share information and exchange perspectives. Issues identified
internal controls. The audit reports are prepared by
at these discussions as being a potential risk are immediately
Messrs Ernst and Young, Chartered Accountants are
subjected to a fuller investigation.
reviewed by the audit committee along with the risk
reports and compliance reports on quarterly basis.
The Company has a proactive approach to business and aimed
3) The Company Board of Directors reviews strategies,
to control this uncertainty and thereby enhancing shareholder
processes, procedures and guidelines on a
value. However, in March 2020, the Company like others
continuous basis to effectively identify, assess and
faced the interruption of the operation and business due to
respond to risks on a quarterly basis in the Board
the Covid-19 virus which we had not heard and anticipated
meetings.
previously. The Company took all precautions to protect all
4) Further Corporate finance and Group Treasury also
employees from this virus and steps have been taken to face
advise on a regular basis.
and minimize the risk if such possible global virus occurs. The

128
Risk Management (Contd...)
Risk Management Framework
Risk Assessing
Identification the Risk
Macroeconomic Operational
Risk
Other Financial
Competitor
& Market
Risk Monitoring Mitigating the

& Reporting Risk
risk management framework of the Company could be shown to protect our employees, assets and reputation. Our ongoing
in the following manner. assessment process takes into account the likelihood of an
event, its potential impact on the business, the need for
The potential risks are identified from the risk workshops, mitigation and to take corrective action. We identify and assess
risks reviews, control checklists and risks reporting. The risk material risks associated with our business, then monitor it,
management policy of Samson International Plc is to proactively manage and mitigate these risks.
manage risk to ensure continued growth of our business and

129
The Risk Management Table below explains the Risk identification, Risk assessment and Risk management under five
risk categories.
Risk Risk Risk Risk Ranking Risk Ranking

identification assessment Management as at 31st as at 31st
March 2020 March 2019
Macroeconomic Risk
1) Market Specific Seasonality period generates a Financial and manpower planning takes Medium Medium
Characteristics Risk substantial proportion of revenue into account expected peak period and
and operating profit during the the business is run accordingly.
third financial quarter.
Adverse trading in this relatively Contacting sister companies to obtain
short period is likely to impact excess workers.
significantly the full year’s results.
Increase attendance bonus during the
peak time.

Maintain a buffer stock
2) Foreign Exchange Depreciation of the rupee value Exchange rate movements are taken in High High
rate Risk and loss of exchange in conversion to consideration before conversion
in relation to export proceeds, and pricing.
import payments and foreign
currency debt transactions. Practicing effective hedging techniques.

Continuous evaluation of the impact of
Central Bank regulations.
3) Socioeconomic Sri Lanka’s socioeconomic and Management reviews prices in Low Low
Risks political environment has an comparison to inflation and negotiates
impact on the local sales with suppliers for lower prices and
credit terms.

Export grade two products to low-end
markets such as India & Pakistan

130
Competitor and Market Risk
4) Risk of Risk of losing our market share Ensuring high standards of quality in the High High
Competition and sales growth to Chinese low eyes of the customer and branding all
quality products and to other our products.
substitute products, e.g. PVC Hot
water bottles. Participate in trade fairs both local and
foreign to attract new customers.

Identify the products which are in the
decline stage of the Product life cycle
and take corrective action.
Sourcing new markets and developing

new products.
Make necessary investments to upgrade

the facilities.
Corporate plan is prepared every three

years and monitored closely.
Increasing productivity and efficiency in

order to ensure our prices remain
competitive.
Carrying out Research and Development

activities to identify needs.
The provision of various value added

services for our key customers.
Manufacture PVC- related products

where there is high demand,
e.g., PVC hose
5) Technological risk Risk of low productivity and high Frequent visits of overseas exhibitions Medium Medium
maintenance costs compared to and continuous investment in modern
the products manufactured by machinery.
competitors.
Continuous competitor analysis is
carried out.
Investing in Research and Development

activities throughout the year.
Investing in ERP system, hardware and

developing software in-house.

131
Competitor and Market Risk contd...
6) Reputation Risk Adverse impact on the corporate Maintenance of highest ethical Low Low
image and brand which is likely to standards at all times in all business
diminish shareholder value. This activities and make compliance audit as
will finally lead to a decline in part of internal audit scope.
market share and customer base.
Proper adherence to the statutory,
health and safety concerns by
obtaining appropriate quality
certification standards.
Continuous review of customer

comments in order to exceed customer
expectations and ensure quality
standards are adhered to and
improved upon.
The Company plays a corporate citizen

role through CSR initiatives.
7) Product Risk Products could turn out to be The Company’s plant and machinery Low Low
defective or inappropriate for the are rigorously maintained and upgraded
market in terms of price, whenever necessary.
functionality or perceived value.
They are also liable to be rendered Established quality control measures as
obsolete. In such instances, the well as product testing through sampling
Company is exposed to market are performed on all product lines.
risks arising from consumer
dissatisfaction and consequent The in-house Quality Surveillance
rejection of its products. Unit tests samples of new products or
components from external suppliers
before order placement.

132
Operational Risk
8) Process Risk Internal process failures, fraud, The Company sources its products and Medium Medium
pilferage and breakdown of services from approved suppliers
internal controls
Outsource internal audit to reputed
audit firm to review and report on the
adequacy of the financial and operational
controls to the Audit Committee.
Systems and procedures are in place to

ensure compliance with internal controls,
which are monitored and reviewed for
their continued efficiency and effectiveness.
Provide focused and structured training

to staff at all levels to familiarize
themselves with processes and
procedures.
Carrying out mandatory preventive

maintenance programmes.
9) Supply Chain Risk Risk of non- availability of raw Establishing relationships with many Medium Medium
materials and excessive prices. global and local suppliers for raw
materials and commodities in order to
reduce over dependency on a single
supplier/brand.
Store raw materials when the prices are

low and enter into forward contracts for
raw material purchases.
Consume energy in the most efficient way.
Re-order level and economic order

quantity are established.
10) Inventory Risk Risk of having non-moving stock Identifying slow-moving stocks and sell Medium Medium
them in a different market.
Offering discount for bulk orders.

133
Operational Risk contd...
11) People Risk Risk of losing skilled and trained Provide focused and structured Medium Medium
human capital training to staff at all levels to aid
personal and professional development.
Establish career development

programmes and succession plans in
order to retain and motivate them.
Maintaining good relationships with

employees through regular dialogue.
Top priority is given to automation of

manual work.
12) Fraud, Compliance As the business grows in size and Clear behavioral guidance given to Low Low
and Internal geographical scope, the potential employees through operational manuals.
Controls Risk for fraud and dishonest activity by
our suppliers, customers and Appropriate procedures and controls set
employees increase. out and audited across the business to
reduce fraud risks; internal Audit and
external Audit undertake detailed
investigations into all business areas and
report their findings to the
Audit Committee.
Regular update and new introduction

of relevant policies and procedures.
Whistle-blower policy.
Periodical review of the internal controls

by outsourced consultants.

134
13) Asset Risk Risks associated with the physical All such assets are insured against all Low Low
assets of the Company include the identifiable risks.
destruction, loss or theft as well as
technical and other defects. The relevant insurance policies are
subject to a comprehensive annual
review, with modifications made as
deemed necessary.
Procedures in place to control technical

and other defects include purchasing
from reputable suppliers who comply
with acceptable standards on product
and service quality; active,
standards-based quality assurance at
all manufacturing facilities.

Provisioning is also made against obsolete
inventory, warranty claims and doubtful
debtors.
14) Governance Risk Risk of non-compliance with Create awareness of statutory Low Low
changes in legal and regulatory obligations at all levels.
environment, taxation, labour and
other laws will result in judiciary Seek advice from external consultants on
actions. all matters relating to litigation and
contracts.
Product liability insurance is taken for

hot water bottles.
Have a central record room to keep all

our important documents for 10 years.
Continuous dialogue with statutory

bodies to meet updated reporting
requirements.

135
Financial Risk
15) Credit Risk Risk arising due to default of Following stringent assessment Medium Medium
payment. Higher credit risk may procedures to ensure credit worthiness
adversely impact both liquidity of the customers prior to the granting
and profitability. of credit.
Credit is allowed only for the approved

customers which is reviewed yearly.
Obtaining bank guarantees, deposits,

post- dated cheques from local debtors
and insurance cover for export debtors
whenever there is a doubt about recovery.
Closely monitoring the debtor balances

and laying down action plans accordingly.
16) Interest rate Inability to satisfy debt repayments To have adequate facilities for obtaining Low Low
and Finance risk and obtain the best interest rates. loans and borrowings in foreign currency
to bring down finance charges.
Funding of long- term assets through

equity and long- term loans.
To have adequate short term borrowing

facilities available at all times.

Low gearing is maintained (31%).
17) Investment Risks New projects/Capital expenditures Conduct a PESTEL analysis and feasibility Low Medium
involve high risks and uncertainties study before initiating the projects.
in terms of delays and cost overruns.
Failure of major projects will affect Board approval should be received for
profitability, capital structure and all investments.
reputation.
Post-evaluation of the projects is carried
out for each investment.

136
Financial Risk contd...
18) Liquidity Risk Inadequate liquidity can have an The liquidity position of the Company is Medium Medium
adverse impact on ongoing regularly reviewed and reported to
operations, marketing and the Board.
investment in new products
and brands. Projected net borrowings are covered by
committed banking facilities and a
healthy industry-related gearing ratio is
maintained.
The Company’s good relationships and

facilities with many banks and other
sources of finance ensure reliable
access to funds.
Other Risk
19) Information To minimize risk associated with Data back-ups stored in off- site Low Low
systems risk data security, hardware & locations.
communication and software.
Maintaining of spare servers.
Vendor agreements for support service

and regular maintenance.
20) Caveat Risk Although the key sources of risk The Company is confident that all Low Low
and their mitigation have been material risk factors have been
discussed in this document, no adequately assessed and managed to
assurance can be given that the ensure the uninterrupted and profitable
Company is fully-protected against continuance of the business.
all possible risks. The best that
can be achieved is reasonable
management of risks through a
sound operational framework that
identifies, evaluates and mitigates
the negative impacts in a timely
manner at multiple levels.
21) Fire and natural

disaster risk Fire and natural disasters can halt Obtaining comprehensive insurance Low Low
or cease operations cover for fire and natural disasters.
Fire safety drills and training is given to

ensure the occurrence of fire is kept to
a minimum.
The Company is equipped with

fire fighting equipment at all strategic
locations in the factory.
137
The summarized risk ranking of the Company is as follows.
High
Exchange
Rate Risk
Risk of Competition
Medium
Technological Risk Credit Risk

Liquidity Risk Process Risk
Supply Chain Risk People Risk
Inventory Risk Market Specific

Low
Socioeconomic Risks Interest rate and Finance Risk
Reputation Risk Information systems Risk
Product Risk Fire and natural disaster Risk
Asset Risk Caveat Risk
Governance Risk Investment Risk
Fraud, Compliance and Internal Controls Risk

138
Audit
Committee Report
Members of the Audit Commttee and reporting purposes and the integrity of financial statements as
well as the independence of the external auditors.
Details of Meetings held:
T he Audit Committee comprises two Non-Executive

The Audit Committee was responsible for the following:
Independent Directors and one Non-Executive Director

1. Meetings with the auditors to discuss any problems and
asat 31st March, 2020. The Committee is chaired by Mr T.K.
reservations arising from the audit and any other matters
Bandaranayake, who is a Fellow Member of the Institute of
that the auditor may wish to discuss independent of the
Chartered Accountants of Sri Lanka and former Senior Partner
management.
of Messrs Ernst & Young.
2. Reviewing the integrity and adequacy of the disclosures

The Audit Committee held four meetings during the year under
in the financial statements of the company in accordance
review. The proceedings of the Audit Committee are regularly
with the Companies Act, No.7 of 2007, the Sri Lanka
reported to the Board of Directors.
The attendance of the members of the Audit Committee was as follows:
Name of Director Status 24th May 09th August 08th November 07th February No of
2019 2019 2019 2020 Attendance

Mr. T. K. Bandaranayake NE/I √ √ √ √ 4/4
Mr. G. H. A. Wimalasena (Retired on 14th August 2020) NE/I √ √ √ √ 4/4
Mr. D. R. Rajapaksa NE √ √ √ √ 4/4
Please also note that under status column, “E” = Executive, “NE”= Non- Executive and “I” = Independent
The attendance of Executive Director/ General Manager and Head of Finance in the Audit Committee meetings is as
follows.
Name Status 24th May 09th August 08th November 07th February No of
2019 2019 2019 2020 Attendance

Mr. D. G. P. S. Abeygunawardana Executive Director/GM √ √ √ √ 4/4
Mr. A. P. Sisira Kumara Head of Finance √ √ √ √ 4/4
The Role of the Audit Committee Accounting Standards and Accounting Policies which are
consistently applied.
The functions of the Audit committee are in line with the
requirement of the Securities & Exchange Commission of Sri
3. Reviewing the financial reporting system to ensure
Lanka, Companies Act, No. 7 of 2007, and the best practices of
the accuracy and timelines of the financial statements
Corporate Governance. These included, inter alia, ensuring the
produced.
effectiveness of internal controls and procedures for financial

139
Audit Committee Report (Contd...)
4. Reviewing and ensuring the adequacy and effectiveness The Audit Committee is satisfied that the Company’s
of the Company’s internal control systems and risk accounting policies, operational controls and risk management
management. practices provide reasonable assurance that the affairs of the
Company are managed in accordance with the Company
5. Oversight on the compliance by the company with the policies and that the Company assets are properly accounted
requirements of the statutory and regulatory framework. for and adequately safeguarded.
Compliance is monitored quarterly through the ‘Company
Reports’. The Committee has recommended to the Board of Directors
that Messrs Edirisinghe & Co., Chartered Accountants, be
6. Making recommendations to the Board of Directors on the re-appointed as the Auditors for the financial year ending 31st
appointment/ re-appointment and the remuneration of the March 2021, subject to the approval of the shareholders at
external auditors based on their performance. the Annual General Meeting at a fee to be determined by the
management.
7. Examining any non-audit work performed by the auditors
to ensure that their independence is not impaired.
Internal Audit Function T. K. Bandaranayake

The Audit Committee reviews the Internal Audit Reports. Chairman
The internal audit function is carried out by Messrs Ernst & Audit Committee
Young. The internal audit reports are reviewed thoroughly and Colombo
recommendations are made for rectification. 14th August 2020
Conclusion
The committee reports to the Board of Directors, identifying
the matters in respect of which it considers that action or
improvement is needed and making recommendations as to
the steps to be taken.

140
Report of
the Remuneration Committee
T he Remuneration Committee, appointed by and responsible
Remuneration Policy
to the Board of Directors, consists of two independent,
In a highly competitive environment, attracting and retaining
Non- Executive Directors, Mr. G.H.A. Wimalasena and Mr.T.K.
high caliber executives is a key challenge faced by the Group.
Bandaranayake. The committee is chaired by Mr. G.H.A.
In this context, the Committee took into account competition,
Wimalasena and he retired on 14th August 2020.
market information and performance evaluation methodology
in declaring the overall remuneration policy.
Role of the Committee
The Remuneration Committee reviews and recommends to the The Remuneration Committee held one meeting during the
Board of Directors the policy on remuneration for the executive year under review.
staff, specific remuneration packages for the Executive Directors
and revision of fees for the Non- Executive Directors. The
aggregate remuneration received by the Directors was shown
under Note 8.1 in the Financial Statement. G.H.A. Wimalasena
Chairman
Colombo
14th August 2020

141
Report of the Related
Party Transactions Review Committee
Composition of the Related Party Mr T. K. Bandaranayake – Chairman Independent,
Non- Executive Director
Transactions Review Committee
Mr G.H. Wimalasena Independent,
T he Related Party Transactions Review Committee (RPTRC)

Mr D.D.A. Rajapaksa
Non- Executive Director
Executive Director
was established in terms of the Code of Best Practice on
Related Party Transactions issued by the Securities & Exchange
The above composition is in compliance with the provisions
Commission of Sri Lanka (the “Code”) and Section 9 of the
of the Code regarding the composition of the Related Party
Listing Rules of the Colombo Stock Exchange (the “Rules”).
Transactions Review Committee. Brief profile of the members is
The Related Party Transactions Review Committee comprises
given on pages 30 to 34 of the Annual Report.
2 Non-Executive Directors and an Executive Director. The
following Directors serve on the Committee chaired by Mr.T. K.
Bandaranayake.
Meetings
This Committee held four meetings during the year under
review.
Name of Director Status 24th May 09th August 08th November 07th February No of
2019 2019 2019 2020 Attendance

Mr. T.K. Bandaranayake NE/I √ ℘ ℘ √ ℘ √ √ ℘ 4/4
Mr. G.H.A. Wimalasena (Retired on 14th August 2020) NE/I ℘ √ ℘ √ ℘ √ √ ℘ 4/4
Mr. D.D.A. Rajapaksa E ℘ √ ℘ √ − √ ℘ 3/4
The attendance of Chief Executive Officer and Head of Finance in the Related Party Transaction Review Committee meetings is as
follows.
Name Status 24th May 09th August 08th November 07th February No of
2019 2019 2019 2020 Attendance

Mr. D.G.P.S. Abeygunawardana Executive Director/ √ √ √ √ 4/4
GM
Mr. A.P. Sisira Kumara Head of Finance √ √ √ √ 4/4

142
Report of the Related Party Transactions Review
Committee (Contd...)
Role and Responsibilities 5. All Managers are advised to report Related Party
Transactions to the Company Secretary who has been
The mandate of the Committee is derived from the Code and
identified as the crucial Point, for this purpose.
the Rules and includes the following:-
6. Details are shared with the Company Secretary to meet the

1. Developing a Related Party Transaction Policy consistent
regulatory requirements if required.
with the provisions of the Code and the Rules for adoption
by the Board of Directors of the Company.
Review Function of the Committee
2. Reviewing in advance all proposed Related Party It has communicated its observations to the Board on the
Transactions in compliance with the provisions of the Code. Related Party Transactions published in the Note 27 to the
Financial Statements on pages 183 to 186.
3. Advising the Boards on making immediate market

disclosures and disclosures in the Annual Report where Reporting to the Board
necessary, in respect of Related Party Transactions, in The Minutes of the RPTRC meetings are tabled at Board
compliance with the provisions of the Code and the Rules. meetings enabling all Board members to have access to same.
Policies and procedures adopted by On behalf of the Related Party Transactions Review Committee.
the Committee for reviewing Related

Party Transactions
1. Relevant information to capture Related Party Transactions
T. K. Bandaranayake
is fed into the Company Related Party data base.
Chairman
2. All officers concerned are informed of the applicable
Colombo
regulatory requirements relating to the reporting of Related
14th August 2020
Party Transactions.
3. Key Management Personnel (KMPs) and their Close Family

Members (CFM’s) are identified quarterly together with
their NIC numbers and business registration numbers.
4. Details are verified and validated regularly.

143
Statement
of Directors Responsibility
T he following statement, which should be read in The Directors are of the opinion that the Financial Statements
conjunction with the Auditor’s responsibilities, as set out of the Company set out on pages 154 to 188 have been
in their report, is made with a view to distinguish between the prepared in accordance with the above requirements and that
respective responsibilities of the Directors’ and the Auditor’s, in they have appropriately discharged their responsibilities as set
out in this Statement.
relation to Financial Statements.
The Directors confirm that to the best of their knowledge,

The Directors are required by the Companies Act, No 07 of
all taxes, duties and levies payable by the Company and all
2007, to prepare Financial Statements for each financial year,
contributions, levies and taxes payable on behalf of and in
which give a true and fair view of the state of affairs of the
respect of the employees of the Company, and all other known
Company as at the end of the financial year and of the profit
statutory dues as were due and payable by the Company, as at
and loss for the financial year. The Directors are required to
the Balance Sheet date have been paid, or where relevant are
prepare these Financial Statements on the going concern basis,
being provided for.
unless it is not appropriate.
As required by Section 56 (2) of the Companies Act and the

Since the Directors are satisfied that the Company has the
Articles of Association of the Company, the Board of Directors
resources to continue its business for the foreseeable future,
has authorized the payment of dividends, being satisfied based
the Financial Statements continue to be prepared on the said
on information available to it that the Company would satisfy
basis.
the Solvency Test after such distributions in accordance with
Section 57 of the Companies Act No. 07 of 2007. Accordingly,
The Directors consider that in preparing the Financial
the Board of Directors has signed the Certificate of Solvency.
Statements, the Company has used appropriate accounting
In respect of the authorized final dividend, the Company shall
policies, consistently applied, and supported by reasonable
forward to CSE, prior to the date of dispatch of the dividend
and prudent judgments and estimates, and that all accounting
payment, a Certificate given by the Auditors to the effect that
standards which they consider to be applicable have been
the Company able to satisfy the Solvency Test immediately after
followed. The Directors are also required to ensure that the
the distribution.
Financial Statements have been prepared and presented in
accordance with the Sri Lanka Accounting Standards (SLFRS/
Messrs Edirisinghe & Co, Chartered Accountants, the Auditors
LKAS), the Rules of the Colombo Stock Exchange and also
of the Company, have examined the Financial Statements made
complied with the related party transaction rules by section
available by the Board of Directors together with all relevant
9.3.2.(d) of the CSE Listing rules.
financial records, related data, minutes of shareholders’ and
Directors’ meetings and express their opinion in their Report on
The Directors are responsible for ensuring that the Company
page 151 of this Annual Report.
keeps accounting records which disclose with reasonable
accuracy the financial position of the Company, and which
On behalf of the Board
enable them to ensure that the Financial Statements comply
with the Companies Act, No.07 of 2007.
The Directors have general responsibility for taking such steps

as are reasonably open to them to safeguard the assets of D. K. Rajapaksa D. G. P. S Abeygunawardana
the Company and to prevent and detect fraud and other Managing Director Director / General Manager
irregularities.
Colombo
14th August 2020

144
Report
of the Board of Directors
T he Directors of Samson International Plc have pleasure in
The Principal Activities of the
presenting their report together with the audited financial Company
statements of the Company for the year ended 31st March The principal activity of the Company is to manufacture of
2020, which was approved by the Directors at a meeting held rubber and PVC-based products for the international and local
on 14th August 2020. markets.
Samson International Plc is a public limited liability Company, Accounting Policies

incorporated in Sri Lanka on 14th October 1988 and re- A summary of the significant accounting policies adopted in the
registered under the Companies Act No. 7 of 2007 on 3rd preparation of the Financial Statements is given on page 158 of
September 2008 under registration number PO 192. The this report as required by Section 168 (1) (d) of the Companies
ordinary shares of the Company were listed in the Colombo Act No. 7 of 2007. The policies adopted are consistent with
Stock Exchange of Sri Lanka on 24th July 1992 and the those adopted in the previous financial year.
Company was converted into a public quoted company.
Review of the year

This Report provides the information as required by the The Chairman’s review and the Managing Director’s operational
Companies Act No. 07 of 2007, the Listing Rules of the review together with the Financial Statements highlight the
Colombo Stock Exchange and recommended best practices on Company’s performance during the period under review and
Corporate Governance. the state of affairs as at 31st March 2020.
The Vision, Values and Corporate Turnover

Conduct Turnover of the Company is Rs.1,590 Mn in 2019/20 as
The vision and values of the Company are given on page 04 of compared to Rs. 1,569 Mn in the last year.
the Annual Report. The business activities of the Company are
conducted at a high level of ethical standards in achieving its
vision.
Turnover by segment:
Rs in 000’
Segment 2019/20 2018/19
Rubber-related items 1,160,566 1,229,609
PVC-related items 429,636 339,736

Total 1,590,202 1,569,345

145
Report of the Board of Directors (Contd...)
Profits:
Rs in 000’
2019/20 2018/19
Profit for the year 12,086 43,634
(after payment of all expenses, making provision for known liabilities and
depreciation on property, plant and equipment)
Tax on profits 225 (18,627)
Profit after taxation 12,311 25,007
Actuarial gain/(loss) on Post-Employment Benefit Liability 561 (1,136)
Diferred tax on Actuarial gain / (loss) (134) 318
Total Comprehensive income net of tax 12,738 24,189
Retained Earnnings:
Rs in 000’
2019/20 2018/19
Balance brought forward 418,537 399,639
Profit for the year 12,311 25,007
Other Comprehensive income 427 (818)
Final dividend (8,466) (5,291)
Balance carried forward 422,809 418,537
Segment Reporting
The revenue and results of the Company Segment-wise is provided in Note 29 to the Financial Statements on page 187.
Taxation
Under of the Inland Revenue Act No (IRA) 24 of 2017, tax profit on export sales, local sales and interest income are taxed at the rate
of 28% for the period ended 31st December 2020 and 24% for the fourth quarter in 2019/20.
Investments in Property, Plant & Equipment

During the year 2019/20, the Company invested Rs. 47 Mn (2018/19 -Rs.57 Mn) in property, plant & equipment. The total
investments in property, plant & equipment as at 31st March 2020 amounted Rs. 862 Mn as opposed to Rs. 815 Mn as at 31st
March 2019. The information relating to the movement in property, plant & equipment is given in Note 13 to the Financial
Statement.
Stated Capital & Reserves
Stated Capital
The movement of the stated capital is as follows:
Rs in 000’
2019/20 2018/19
Stated capital- Rs 109,600 109,600
No. of Ordinary shares 4,232,771 4,232,771
Details of the Stated capital are given in Note 21 to the Financial Statements on page 181 of this Annual Report. The rights and
obligations attaching to the ordinary shares are set out in the Articles of Association of the Company, a copy of which can be
obtained from the Secretaries upon request.
146
Reserves
The Group reserves as at 31st March were as follows: Rs in 000’
2019/20 2018/19
General reserves 110,000 110,000
Revenue reserves 418,537 399,639
Total reserves 528,537 509,639
Directorate
The names of the Directors who held office at the end of the financial year are given below and their brief profiles appear on pages
30 and 34.
1) DR D.S. Rajapaksa (Chairman)

2) Mr D. K. Rajapaksa (Managing Director)
3) Mr D. R. Rajapaksa (Non - Executive Director)
4) Mr G. H. A. Wimalasena (Independent, Non - Executive Director) - Retired on 14th August 2020
5) Mr T. K. Bandaranayake (Independent, Non - Executive Director)
6) Mr D. G. P. S. Abeygunawardana (Director/ General Manager)
7) Mr D. D. A. Rajapaksa (Executive Director)
8) Mr. D. C. J. Rajapaksa (Non - Executive Director)
9) Ms. I. Malwatte (Appointed on 14th August 2020)
The Board of Directors recommends that a resolution be passed by the shareholders declaring that the age limit stipulated in Section
210 of the Companies Act No. 07 of 2007 shall not apply to Mr D. S. Rajapaksa, Mr D. K. Rajapaksa, Mr D R Rajapaksa Mr T. K.
Bandaranayake and Mr G. H. A. Wimalasena and that, notwithstanding them having attained the age of more than 70 years, they
be appointed to the Board of Directors for a period of one year in terms of Section 211 of the Companies Act No. 07 of 2007.
Further Ms. I. Malwatte who will retire by rotation in terms of Article 95 of the Article of Association as a Director of the Company
would be re-elected as a Director at the Annual General Meeting.
Mr T. K. Bandaranayake who was appointed as an Independent Director of the Company had served their respective first term of
nine years and thereupon the Board of Directors Resolved on 14th August 2020 that despite having previously served for a term of
nine years that they are yet regarded as Independent Directors in terms of Rule 7.10.4 [read with sub-rules (a) to (h)] of the Revised
Rules of the Colombo Stock Exchange, and accordingly were reappointed for a second term of nine years.
The attendance of the directors in the Board meetings are given on page 127 under Corporate Governance.
Directors’ interest in shares

Directors’ holdings of ordinary shares in the Company are given below:
No of Shares as at No of shares as at
31.03.2020 31.03.2019
Dr. D. S. Rajapaksa 1 1
Mr. D. K. Rajapaksa 10,959 10,959
Mr. D. R. Rajapaksa 11,350 11,350
Mr. G. H. A. Wimalasena Nil Nil
Mr. T. K. Bandaranayake Nil Nil
Mr. D. G. P. S. Abeygunawardana 110 110
Mr. D. D. A. Rajapaksa Nil Nil
Mr. D. C. J. Rajapaksa Nil Nil
Total 22,420 22,420

147
The Directors of the Company who have relevant interests in
the shares of the Company have disclosed their shareholdings Mr G. H. A. Wimalasena – Chairman, Independent,
in compliance with Section 200 of the Companies Act. Non-Executive Director
Mr T.K. Bandaranayake Independent,
Directors’ Remuneration and Other Non -Executive Director
Benefits
The details of the Directors’ remuneration and other benefits, The Report of the Remuneration Committee is given on page
in respect of the Company for the financial year ended 31st 141, which forms a part of the Annual Report.
March 2020 is given in Note 8 to the Financial Statements on
page 172 of this Report, as required by Section168 (1) (f) of the Related Party Transactions Review
Companies Act No. 07 of 2007. Directors’ remuneration for the Committee
financial year 2019/20 is Rs. 27,781,941 (last year 12,229,666).
Mr T. K. Bandaranayake – Chairman, Independent,
Directors’ interest in transactions: Non- Executive Director
The Directors of the Company have made a disclosure as Mr G.H. Wimalasena Independent,
required under Section 192(2) of the Companies Act No. 07 of Non- Executive Director
2007. Note 27 to the financial statements dealing with related Mr D.D. A. Rajapaksa Executive Director
party disclosures include their interests in transactions.
The Report of the Related Party Transaction Review Committee
Interest Register is given on pages 142 and 143, which forms part of the Annual
The Interests Register is maintained by the Company, as per Report.
the Companies Act, No. 7 of 2007. All Directors have made

declarations as provided for in Section 192 (1) & (2) of the Employment Policies
Companies Act aforesaid. The related entries were made in the The Company continues to invest in human resource
development and implements effective practices to develop and
Interests Register during the year under review. The Interests
build an efficient and effective workforce to ensure optimum
Register is available for inspection as required by Section 119
contribution toward the achievement of its corporate goals.
(1) (d) of the Companies Act No. 07 of 2007.
The Company employment policies are based on recruiting the
best people, providing them training to enhance their skills,
Board Committees
and recognition of the innate skills and competencies of each
The Board while assuming the overall responsibility and
individual while offering equal career opportunities regardless
accountability in the management of the company has also
of gender, race or religion and to retain them with the
appointed Board Committees to ensure oversight and control
Company as long as possible. The number of persons employed
over certain affairs of the Company, conforming to the
by the Company at year-end was 456 (last year 414).
corporate governance code and adopting the best practices.
Accordingly, the following Committees have been constituted
System of internal controls
by the Board:
The Board of Directors has established an effective and
comprehensive system of internal controls to ensure that
Audit Committee proper controls are in place to safeguard the assets of the
Mr. T. K. Bandaranayake – Chairman, Independent, Company, to detect and prevent fraud and irregularities,
Non- Executive Director to ensure that proper records are maintained and Financial
Mr. G. H. Wimalasena Independent, Statements presented are reliable and accurate. Monthly
Non- Executive Director Management Accounts are prepared, giving management
Mr. D. R. Rajapaksa Non -Executive Director relevant, reliable and up -to-date Financial Statements and key
performance indicators. The internal control systems across the
The Report of the Audit Committee is given on pages 139 and organization are regularly evaluated by the internal auditors
140, which forms part of the Annual Report. to the audit committee. The findings of the internal audit are
reviewed first by the audit committee and significant issues are
148
thereafter reported to the Board. The Statement on Directors’ other regulatory institutions and in relation to employees
responsibility for financial reporting of the Company is set out have been made within the stipulated period and have been
on page 144 of this Report. accounted for during the financial year.
The Audit Committee reviews, on a regular basis, the reports, Compliance with laws and regulations
policies and procedures to ensure that a comprehensive internal To the best of the knowledge and belief of the Directors, the
control framework is in place. Company has not engaged in any activities contravening the
laws and regulations of the country.
Financial Risk
The finance and interest rate risks associated with the operation Social and Environmental
of the company are discussed in detail under risk management Responsibility
on page 128 of this report. As a responsible corporate body, the Company has taken
all necessary steps and precautions to minimize any adverse
Donations impact of the Company’s activities on the environment. When
The total amount of donations in cash was Rs 362,483 in the
introducing new business, products, methods and machines,
year 2019/20 (2018/19 – Rs. 195,568). This has not exceeded
maximum care is taken to ensure that these conform to
the amount approved by shareholders at the last Annual
accepted environmental and safety regulations and standards.
General Meeting.
The Directors, to the best of their knowledge and belief, are
satisfied that the Company has not engaged in any activities
No donation was made for political purposes.
which have caused adverse effects on the environment and it
Major Transactions has complied with the relevant environmental regulations.
There have been no transactions during the year under review

which fall within the definition of “Major Transactions” in Corporate Governance
terms of Section 185 of the Companies Act, No. 07 of 2007. The Company maintains and practices high principles of good
The total assets of the Company are Rs. 1.18 Bn and 50% of corporate governance. The Directors are responsible for the
the total assets is Rs. 589 Mn. The Company has not bought formulation and implementation of overall business strategies,
any assets or undertaken any liabilities greater than Rs. 589 Mn policies and setting standards in the short, medium and long-
during the year under review. term adopting good governance in managing the affairs of the
Company. The practices adopted by the Company in relation to
Share information corporate governance are set out on pages 105 and 127 of this
The information pertaining to earnings per share, dividend Report.
per share, net assets per share and market value per share is
given in the Financial highlights on page 05 and in the Ten-year Auditor’s Report
summary on page 192 of this Annual Report. The Company’s external auditor, Messrs Edirisinghe &
Company, performed the audit on the Financial Statements for
The twenty major shareholders and percentages held by each the year ended 31 March 2020. The Auditor’s Report on the
one of them as at 31st March 2020 are given on page 206 of Financial Statements is given on page 151 of this Report as
the Annual Report. required by Section 168 (1) (c) of the Companies Act.
Public holding of shares in the Appointment of Auditors

Company The retiring Auditors Edirisinghe & Company, Chartered
As at 31st March 2020, the public held 43.207% (in 2018/19- Accountants, have expressed their willingness to continue
43.208%) of the shares of the Company. in office. A resolution to re-appoint them as auditors and
authorize the Directors to fix their remuneration will be
Statutory Payments proposed at the Annual General Meeting in terms of the

Companies Act, No. 7 of 2007.
The Directors, to the best of their knowledge and belief, are
satisfied that all statutory payments due to the government,

149
Auditor’s Remuneration and Financial Statements of the Company
Independence The Financial Statements of the Company, duly certified by the
The Company paid audit fees to the external auditors for Head of Finance and approved by two Directors in compliance
the year 2019/20 amounting to Rs. 409,300 (2018/19 - Rs. with Sections 152, 153 and 168 of the Companies Act No. 7 of
389,600). Based on the declaration provided by Messrs 2007, are given from pages154 to 187 of the Annual Report.
Edirisinghe & Co. and as far as the Directors are aware, the
Auditors do not have any relationship with or interests in the Secretaries
Company that may have a bearing on their independence, P W Corporate Secretarial (Pvt) Ltd. continues to work as
within the meaning of the Code of Professional Conduct and Secretaries to the Company.
Ethics issued by the Institute of Chartered Accountants of Sri
Lanka. Dividends
During the year under review, the company contributed to our
Outstanding litigation shareholders providing income gains in the form of dividends.
In the opinion of the Directors, in consultation with the
Company lawyers, there is no litigation currently pending The Board of Directors decided to recommend a dividend of
against the Company which will have a material impact on the Rs. 1.00 per share base on the profit of 2019/20. (Dividend for
reported financial results or future operations of the Company. 2018/19 is Rs. 2.00 per share ). This is to be paid before 9th
September 2020.
Post Balance sheet events
In the opinion of the Directors, no item, transaction or event of The Company maintains a consistent dividend policy in line
an unusual nature has taken place between the financial year- with profitability and market expectations. The total dividends
end and the date of this report that would materially affect declaration for the financial year will amount to Rs. 4.2Mn.
the results of the Company for the financial year in respect of
which this report is made. Notice of Meeting
Details of the Annual General Meeting are given in the Notice
Going Concern of Meeting on page 208.
The Board of Directors has reviewed the Company’s business
and corporate plans and are satisfied that the Company 28th Annual General Meeting
has adequate resources to continue its operations in the The 28th Annual General Meeting of the Company will be
foreseeable future after considering the financial position, held on Friday the 30th day of September 2020 at the Samson
operating conditions, regulatory and other factors required Rajapaksa Auditorium, Sri Lanka College of Obstetricians and
to be addressed in the Corporate Governance Code. The Gynecologists at No 112, Model Farm Road, Colombo 08,
Directors have a reasonable expectation that the Company which was the same venue for the previous year.
possesses adequate resources to continue in operation for the
foreseeable future. For this reason, they continue to adopt the For and on behalf of the Board of Directors,
Going Concern basis in preparing the Financial Statements. The
assessment includes the anticipated effect of the COVID-19
pandemic on the significant assumption that are sensitive or
susceptible to change or are inconsistent with historical trend.
As the economic effects of COVID-19 continue to evolve, D. K. Rajapaksa D. G. P. S Abeygunawardana
management considered a range of scenarios to determine the Managing Director Director / General Manager
potential impact on underline performance and future funding
requirements.
P W Corporate Secretarial (Pvt) Ltd.

Secretaries
Colombo
14th August 2020

150
INDEPENDENT
Auditor’s Report
TO THE SHAREHOLDERS OF SAMSON INTERNATIONAL PLC

Report on the Audit of the Financial Statements

Opinion
We have audited the accompanying financial statements of Samson International PLC (the Company), which comprise the statement of financial
position as at March 31, 2020, and the statement of profit or loss and other comprehensive income, Statement of changes in equity, and Statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements of the Company give a true and fair view of the financial position of the Company as at March
31, 2020, and of its financial performance and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.

Basis for Opinion
We conducted our audit in accordance with Sri Lanka Auditing Standards (SLAuSs). Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with
the ethical requirements of the Code of Ethics issued by CA Sri Lanka (Code of Ethics) that are relevant to our audit of the financial statements,
and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current
period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. For each matter below, we have provided a description of how our audit procedures addressed the
matters in that context.
Key Audit Matter How Our Audit Addressed the Key Audit Matter
01) Provision for deferred tax Our procedures included the following:
Provision for deferred tax has been calculated considering financial Our audit procedures included verification of controls over the
statement areas such as Retirement benefit obligation and Property, appropriateness of models used in calculations, the process of
plant and equipment, where significant management estimates, determining key assumptions and the identification of figures
judgments and uncertainties are involved. to be included within the calculations. The appropriateness of
management’s judgments was also independently considered in
respect of calculation methodologies and individual calculations
were also performed.

151
INDEPENDENT Auditor’s Report (Contd...)
Key Audit Matter How Our Audit Addressed the Key Audit Matter
02) Management assessment of material uncertainty relating to Assessed the director’s assessment of the company’s ability to
impact of COVID 19 continue as going concern including challenging the underline
The financial statements have been prepared on a going concern data and key assumptions used to make the assessment, and
basis of preparation of financial statements, the directors evaluated the plan for future action in relation to the going
have reviewed the company’s cash flow projection for next 12 concern assessment.
months. Cash flow projections were based on the management’s
assumption and estimation of future cash inflows and outflows, Assessed the adequacy of disclosures in the financial statements
taking into consideration the potential impact of COVID 19 in relation to the going concern basis of accounting reference
pandemic. to requirement of prevailing accounting standards and potential
impact of COVID 19 outbreak.
Note 2.4 and note 28 to the financial statements, described
the impact of COVID 19 outbreak to the current year financial
statement and possible effect to the company’s future projection,
performance and cash flows. further the management considered
its appropriate to adopt the going concern basis of accounting
in preparing them and their identification of any material
uncertainties to the company’s ability to continue to do so over a
period of at least 12 months from the end of the financial year.
Other Information
Other information consists of the information included in the Annual Report, other than the financial statements and our auditor’s report thereon.
Management is responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated, If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.

Responsibilities of Management and those Charged with Governance for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with Sri Lanka Accounting Standards
and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatements, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SLAuSs will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.

152
INDEPENDENT Auditor’s Report (Contd...)
As part of an audit in accordance with SLAuSs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:

l Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
l Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the
Management.
l Conclude on the appropriateness of the Managements’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
l Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
l Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to
express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the Company’s audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with ethical requirements in accordance with the Code of
Ethics regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of
the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.

As required by section 163 (2) of the Companies Act No. 07 of 2007, we have obtained all the information and explanations that were required for the
audit and, as far as appears from our examination, proper accounting records have been kept by the Company.
CA Sri Lanka membership number of the engagement partner responsible for signing this independent auditor’s report is 2256.

Edirisinghe & Co.
Chartered Accountants
Colombo
14th August 2020

153
STATEMENT
of Comprehensive Income
FOR THE YEAR ENDED 31ST MARCH 2020 2019

NOTE Rs. Rs.
Revenue 06 1,590,202,615 1,569,344,864
Cost of sales (1,300,271,205) (1,261,795,596)
Gross profit 289,931,410 307,549,268
Other income 07 3,843,506 6,133,005
Distribution cost (68,645,882) (65,507,068)
Administrative expenses (190,992,443) (176,642,955)
Profit from operations 08 34,136,591 71,532,250
Finance income 09.1 7,140,110 6,585,773
Finance cost 09.2 (29,190,588) (34,483,468)
Net finance cost (22,050,478) (27,897,695)
Profit before income taxation 12,086,113 43,634,555
Income tax expense 10 224,896 (18,627,392)
Profit for the year 12,311,009 25,007,162
Other comprehensive income / (expense), net of tax:
Items that will not be reclassified subsequent to the Statement of Profit or loss
Actuarial gain / (loss) on post employment benefit liability 561,423 (1,136,247)
Deferred tax on actuarial gain/(loss) (134,742) 318,149
Items that will be reclassified subsequent to the Statement of Profit or loss - -
Total comprehensive income / (loss) for the year, net of tax 426,681 (818,099)
Total comprehensive income for the year, net of tax 12,737,690 24,189,064
Basic earnings per share 11 2.91 5.91
Dividends per share 12 2.00 1.25
All values are in rupees, unless otherwise stated. Figures in brackets indicate deductions.
The significant accounting policies and notes on pages 156 to 187 are an integral part of these financial statements.

154
STATEMENT
of Financial Position
AS AT 31ST MARCH 2020 2019
NOTE Rs. Rs.
Assets
Non current assets
Property, plant and equipment 13 412,773,558 423,723,870
Intangible assets 14 4,452,992 5,324,828
Financial assets at fair value through profit and loss 15 20,079,350 18,703,210
Financial assets at amortized cost 16 16,401,793 14,965,959
Deferred tax assets 17.1 11,227,026 11,221,917
464,934,719 473,939,784

Current assets
Inventories 18 269,490,083 198,337,225
Trade and other receivables 19 355,830,769 471,814,451
Income tax refund 4,476,391 7,247,468
Cash and cash equivalents 20 83,842,921 43,912,089
713,640,164 721,311,233
Total assets 1,178,574,883 1,195,251,017

Equity and liabilities
Equity
Stated capital 21 109,600,211 109,600,211
General reserve 110,000,000 110,000,000
Retained earnings 422,809,189 418,537,041
Total equity 642,409,400 638,137,252

Non current liabilities
Deferred tax liability 17.2 48,416,109 59,691,217
Retirement benefit obligation 22 46,779,277 40,078,274
95,195,386 99,769,491

Current liabilities
Trade and other payables 23 158,230,915 173,082,055
Short term borrowings 24 282,739,182 284,262,219
440,970,097 457,344,274

Total liabilities 536,165,483 557,113,765

Total equity and liabilities 1,178,574,883 1,195,251,017
The above financial statements comply with the requirements of Companies Act No.07 of 2007.

A.P. Sisira Kumara

Head of Finance
The Board of Directors is responsible for the preparation and presentation of these financial statements. The financial statements on
pages 154 to 188 were approved by the board of directors and were signed in Colombo on 14th August 2020 on its behalf by:

D. K. Rajapaksa D. G. P. S. Abeygunawardana
Managing Director Director / General Manager
155
STATEMENT
of Changes in Equity
FOR THE YEAR ENDED 31ST MARCH 2020
Stated General Retained
Capital Reserve Earnings Total
Rs. Rs. Rs. Rs.
For the year ended 31st March 2019
Balance as at 01st of April 2018 109,600,211 110,000,000 399,638,940 619,239,151
Profit for the year - - 25,007,162 25,007,162
Other comprehensive income - - (818,098) (818,098)
Dividends paid - - (5,290,964) (5,290,964)
Balance as at 31st March 2019 109,600,211 110,000,000 418,537,041 638,137,252
For the year ended 31 March 2020
Balance as at 1st April 2019 109,600,211 110,000,000 418,537,041 638,137,252
Profit for the year - - 12,311,009 12,311,009
Other comprehensive income - - 426,681 426,681
Dividends paid - - (8,465,542) (8,465,542)
Balance as at 31st March 2020 109,600,211 110,000,000 422,809,189 642,409,400
General reserve represents the amount set aside by the Directors for future expansion and to meet any contingencies.
Figures in brackets indicate deductions. All values are in Rupees, unless otherwise stated.

156
STATEMENT
of Cash Flows
FOR THE YEAR ENDED 31ST MARCH 2020 2020 2019
NOTES Rs. Rs.
CASH FLOW FROM OPERATING ACTIVITIES

Profit /(Loss) before taxation 12,086,113 43,634,555
Adjustment for :
Depreciation 13 57,767,850 54,379,750
Amortization of intangible assets 14 871,836 871,836
(Profit) / loss on available for sale financial assets (1,376,140) (986,325)
Exchange (gain) / loss on borrowings 9,916,694 (4,920,976)
Increase in provision for retirement benefit obligation 22 8,399,581 6,991,516
Interest income 09.1 (7,140,110) (6,585,773)
Interest cost 09.2 29,190,588 34,483,468
Profit Before Working Capital Changes 109,716,412 127,868,051
Changes in Working Capital :
Increase in inventories 18 (71,152,858) (15,603,556)
Decrease / (increase) in trade and other receivable 19 115,983,683 (133,334,571)
Increase / (decrease) in trade and other payable 23 (14,851,140) (9,306,990)
Cash generated from/(used in) operations 139,696,097 (30,377,066)
Interest paid 09.2 (29,190,588) (34,483,468)
WHT paid (154,926) (72,382)
ESC paid (8,264,061) (7,393,398)
Retiring gratuity paid 22 (1,137,155) (1,750,528)
Net cash generated from operating activities 100,949,367 (74,076,842)

CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment 13 (46,817,538) (56,832,311)
Investment in treasury bills 16 (1,435,834) (1,192,295)
Net proceeds from withdrawal of fixed deposits 16 - 11,414,740
Interest income 09.1 7,140,110 6,585,773
Net cash used in investing activities (41,113,262) (40,024,093)
CASH FLOW FROM FINANCING ACTIVITIES
Dividends paid (8,465,542) (5,290,964)
Proceeds from short term borrowings 24 637,219,499 419,982,063
Repayment of short term borrowings 24 (652,223,119) (347,174,473)
Net cash generated from / (used in) financing activities (23,469,162) 67,516,626
Net decrease in cash and cash equivalents 36,366,943 (46,584,309)
Cash and cash equivalents at the beginning of the year (37,803,454) 8,780,856
Cash and cash equivalents at the end of the year 20 (1,436,511) (37,803,454)
All values are in Rupees, unless otherwise stated. Figures in brackets indicate deductions.


157
NOTES
to the Financial Statements
1. General Information 2.2 Basis of measurement
The financial statements have been prepared on the
1.1 General historical cost basis, except that the retirement benefit
The Company is a public limited liability Company obligations are measured at the present value of the
incorporated and domiciled in Sri Lanka. The address defined benefit plans as explained in the respective
of its registered office is No. 110, Kumaran Ratnam notes to the financial statements.

Road, Colombo 02 and the principle place of business
2.3 Measurement of Fair Values
is situated at Akuressa Road, Bogahagoda, Galle.
The Company regularly reviews significant

unobservable inputs and valuation adjustments. If third
1.2 Principal activities and nature of operations
party information is used to measure fair values, the
During the year, the principal activities of the Company
Company assesses the evidence obtained from the third
were manufacture unhardened vulcanized rubber and
parties to support the conclusion that such valuations
PVC based products to the international and local
meet the requirements of SLFRS, including the level in
markets.
the fair value hierarchy in which such valuations should

be classified.
1.3 Parent enterprise and ultimate parent enterprise
The Company’s parent undertaking is DSI Samson
When measuring the fair value of an asset or a liability,
Group (Pvt) Ltd which holds effectively (collectively
the Company uses observable market data as far as
inclusive of Company holding) 57% of shares of
possible. Fair values are categorised into different levels
Samson International PLC.
in fair value hierarchy based on the inputs used in the

valuation techniques as follows.
1.4 Approval of financial statements
These financial statements have been approved for
Level 1 : Quoted prices (unadjusted) in active markets
issue by the Board of Directors on 14th August 2020.
for identical assets or liabilities.

Level 2 : Inputs other than quoted prices included
1.5 Number of employees in Level 1 that are observable for the asset
The number of employees of the Company at the end or liability, either directly (i.e. as prices) or
of the year was 456 (2018/19 - 414 Employees)
indirectly (i.e. derived from prices).
Level 3 : Inputs for the asset or liability that are
2. Basis of Preparation
not based on observable market data.
(unobservable inputs).
2.1 Statement of compliance
The Company prepares the financial statements in If the inputs used to measure the fair value of an
accordance with the Sri Lanka Accounting Standards asset or a liability fall into different levels of the fair
(LKASs and SLFRSs) issued by the Institute of Chartered value hierarchy, then the fair value measurement is
Accountants of Sri Lanka and the requirements of categorised in its entirety in the same level of the
the Companies Act No. 07 of 2007 and Sri Lanka fair value hierarchy as the lowest level input that is
Accounting and Auditing Standards Act No. 15 of significant to the entire measurement.
1995.
158
NOTES to the Financial Statements (Contd...)
2.4 Going concern 3.1 Foreign Currency
The Directors have made an assessment of the
Company’s ability to continue as a going concern in 3.1.1 Foreign currency transactions
the foreseeable future. The assessment includes the In preparing the Financial Statements of the individual
anticipated effect of the COVID-19 pandemic on the entities, transactions in currencies other than the
significant assumption that are sensitive or susceptible entity’s functional currency (foreign currencies)
to change or are inconsistent with historical trend. are recorded in the functional currencies using
As the economic effects of COVID-19 continue to
the exchange rates prevailing at the dates of the
evolve, management considered a range of scenarios
transactions.
to determine the potential impact on underlined
performance and future funding requirements.
At each reporting date, monetary items denominated
Management is not aware of any material uncertainties
in foreign currencies are translated at the closing rate.
that may cast significant doubt on company’s ability
to continue as going concern. Therefore, the financial
Exchange differences arising on the settlement of
statements continued to be prepared on the going
monetary items, and on the translation of monetary
concern basis.
items, are included in profit or loss for the year.
2.5 Functional and presentation currency
The financial statements are presented in Sri 3.2 Assets and the Bases of their Valuation
Lankan Rupees which is the Company’s functional Assets classified as current assets in the Statement of
currency. Financial Position are cash, bank balances and those
which are expected to be realized in cash, during the
2.6. Use of Estimates and Judgments normal operating cycle of the Company’s business, or
The preparation of financial statements in conformity within one year from the reporting date, whichever
with SLFRS requires management to make judgments, is shorter. Assets other than current assets are those
estimates and assumptions that affect the application which the Company intends to hold beyond a period
of accounting policies and the reported amounts of of one year from the reporting date.
assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements 3.2.1 Property, Plant and Equipment
and the reported amounts of revenue and expenses
Property, Plant and Equipment is recognised if it is
during the reporting period. Although the judgments
probable that future economic benefits associated with
and estimates are based on management’s best
the assets will flow to the entity and the cost of the
knowledge of the current events and actions, actual
assets can be measured in reliably in accordance with
results may ultimately differ from those estimates. It
LKAS 16 - Property, Plant and Equipment.
also requires management to exercise its judgment

in the process of applying the company’s accounting
3.2.1.1 Recognition and measurement
policies.
Property, Plant and Equipment is stated at cost less

Information about critical estimates and judgments accumulated depreciation and accumulated impairment
in applying accounting policies that have the most losses.
significant effect on the amounts recognized in the

financial statements is provided in Note 04. Such cost includes expenditure that is directly
attributable to the acquisition of the assets.
3. Significant Accounting Policies
The accounting policies set out below have been 3.2.1.2 Subsequent costs
applied consistently to all periods presented in these The cost of replacing part of an item of property, plant
financial statements of the Company. and equipment is recognised in the carrying amount
of the item if it is probable that the future economic

159
benefits embodied within the part will flow to the Depreciation method, useful lives and residual values
company and its cost can be measured reliably. The are reviewed at each financial year end and adjusted if
carrying amount of the replaced part is derecognised in appropriate.
accordance with the derecognision policy given bellow.
The cost of repair and maintenance of property, plant 3.2.2 Leased assets
and equipment are of profit or loss as incurred. The Company applied SLFRS 16 for the fist time with
effect from 1st April 2019, however there is no any
3.2.1.3 De-recognition impact on the financial statements with the application
The carrying amount of an item of property, plant and of the standard.
equipment is derecognized on disposal or when no
future economic benefits are expected from its use The Company assess at the inception of a contract,
or disposal. Gains or losses on de-recognition of the whether the contract is, or contains, a lease. A contract
asset are determined by comparing the proceeds from is contains, a lease if the contract conveys the right to
disposal with the carrying amount of property, plant & control the use of an identified asset for a period of
equipment and are recognized within other income in time in exchange for consideration.
the Statement of comprehensive income.
The Company recognises a right- of - use asset and a
3.2.1.4 Depreciation lease liability at the inception of a contract,. However,
Depreciation is calculated over the depreciable the company has elected not to apply the recognition
amount, which is the cost of an asset, or other amount requirements to,
substituted for cost, less its residual value.
- Short- term Leases ; and
Depreciation is recognized in profit or loss on a straight - Leases for which the underlying asset is of low value
line basis over the estimated useful lives of each
part of an item of property, plant and equipment, Where the company recognises the lease payments
since this most closely reflects the expected pattern associated with those leases as an expense on a
of consumption of the future economic benefits straight- line basis over the lease term
embodied in the asset.
3.2.3 Intangible Assets
The estimated useful lives are as follows: The Company recognises intangible assets if it is
probable that future economic benefit associated with
Asset category Useful life (Years) the assets can be measured reliably in accordance with
LKAS 38.
Buildings 20 years
Plant and machinery 10 years to 29 years

The Company’s intangible assets include the value of
Machine accessories 10 years to 26 years acquired computer software.
Furniture and fittings 10 years
Office equipment 10 years to 23 years 3.2.3.1. Software

All computer software cost incurred, which are not
Motor vehicles 05 years to 19 years
internally related to associate hardware, which can be

clearly identified, reliably measured and it is probable
Depreciation of an asset begins when it is available
that they will lead to future economic benefits, are
for use whereas depreciation of an asset ceases at the
included in the Statement of financial position under
earlier of the date that the asset is classified as held
the category of intangible assets.
for sale and the date that the asset is derecognized.


160
Intangible assets acquired separately are measured on 3.2.4 Impairment of non-financial assets
initial recognition at cost. The Company estimates the asset’s recoverable
amount. An asset’s recoverable amount is the higher of
Following initial recognition, intangible assets are an asset’s or CGU’s fair value less costs of disposal and
carried at cost less accumulated amortization and its value in use. The recoverable amount is determined
accumulated impairment losses, if any. for an individual asset, unless the asset does not
generate cash inflows that are largely independent
3.2.3.2 Subsequent expenditure of those from other assets or group of assets. When
Subsequent expenditure is capitalized only when it the carrying amount of an asset or CGU exceeds its
increases the future economic benefits embodied in the recoverable amount, the assets is considered impaired
specific asset to which it relates. All other expenditure and is written down to its recoverable amount.
is recognized in profit or loss as incurred. Impairment losses of continuing operations are
recognised in the statement of profit or loss in expense
3.2.3.3 Amortization categories consistent with the function of the impaired
Amortization is calculated over the cost of the asset, assets except for properties previously revalued with
or other amount substituted for cost, less its residual the revaluation taken to Other Comprehensive Income.
value. For such properties, the impairment is recognised in
Other Comprehensive Income up to the amount of any
Amortization is recognized in the profit or loss on a previous revaluation.
straight line basis over the estimated useful lives of
intangible assets, other than goodwill, from the date For assets, an assessment is made at each reporting
that they are available for use, since this most closely date to determine whether there is an indication that
reflects the expected pattern of consumption of the previously recognised impairment losses no longer
future economic benefits embodied in the asset. exist or have decreased. If such indication exists, the
company estimates the asset’s recoverable amount. A
Category Useful Depreciation previously recognised impairment loss is reversed only
of Asset Life (Years) Rate (%) if there has been a change in the assumptions used
ERP Computer to determine the asset’s recoverable amount since the
Software 10 10% last impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset does
Amortization methods, useful lives and residual values not exceed its recoverable amount, nor exceed the
are reviewed at each financial year end and adjusted if carrying amount that would have been determined,
appropriate. net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is
Changes in the expected useful life or the expected recognised in the statement of profit or loss unless the
pattern of consumption of future economic benefits asset is carried at a revalued amount, in which case, the
embodied in the asset is accounted for by changing the reversal is treated as a revaluation increase.
amortization period or method, as appropriate, and are
treated as changes in accounting estimates. 3.3 Financial instruments
A financial instrument is any contract that gives rise to
3.2.3.4 Derecognition a financial asset of one entity and financial liability or
Gains or losses arising from derecognizing of an equity instrument of another entity.
intangible asset are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognized in the income
statement when the asset is derecognized.

161
3.3.1 Financial assets designated as such at fair value through other
comprehensive income at initial recognition. However
3.3.1.1 Initial recognition and measurement as at 31 March 2020, there were no financial assets at
Financial assets within the scope of SLFRS 09 are fair value through other comprehensive income.
classified as financial assets at fair value through
profit or loss, financial assets at fair value through 3.3.1.2.3 Financial assets at amortized cost
other comprehensive income and financial assets Financial assets at financial assets amortized cost
at amortized cost. The Company determines the include financial assets designated as such at amortized
classification of its financial assets at initial recognition. cost at initial recognition. The Company have been
the classification depends on the financial asset’s classified investments in treasury bills, investment in
contractual cash flow characteristics and the company’s fixed deposits and trade receivables under this category
business model for managing them. All financial assets considering the objective is to hold such investments
are recognized initially at fair value plus, in the case of and receivables in order to collect contractual cash
assets not at fair value through profit or loss, directly flows.
attributable transaction costs. Trade receivables that
do not contain a significant financial component or for 3.3.1.3 De-recognition
which the company has applied the practical expedient A financial asset (or, where applicable a part of a
are measured at the transaction price determined financial asset or part of a group of similar financial
under SLFRS 15. Purchases or sales of financial assets assets) is derecognized when:
that require delivery of assets within a time frame
established by regulation or convention in the market • The rights to receive cash flows from the asset
place (regular way trades) are recognized on the trade have expired
date, i.e., the date that the Company commits to • The Company has transferred its rights to receive
purchase or sell the asset. cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
3.3.1.2 Subsequent measurement without material delay to a third party under a
The subsequent measurement of financial assets ‘pass-through arrangement; and either
depends on their classification as follows:
(a) The Company has transferred substantially all the
3.3.1.2.1 Financial assets at fair value through profit and risks and rewards of the asset, or
loss (b) The Company has neither transferred nor retained
Financial assets at fair value through profit and loss substantially all the risks and rewards of the
include financial assets designated as such at fair value asset, but has transferred control of the asset.
through profit or loss at initial recognition. Financial
assets are classified as held for trading if they are On de-recognition of a financial asset, the difference
acquired for the purpose of selling in the near term. between the carrying amount of the asset (or the
Subsequent to initial recognition, financial assets at carrying amount allocated to the portion of the asset
fair value through profit loss are carried at fair value transferred), and the sum of (i) the consideration
in the Statement of financial position with fair value received (including any new asset obtained less any
gains or losses recognized through the Statement of new liability assumed) and (ii) cumulative gain or loss
comprehensive income. that had been recognized in other comprehensive
income is recognized in profit or loss.
3.3.1.2.2 Financial assets at fair value through other
comprehensive income 3.3.2 Impairment of financial assets
Financial assets at fair value through other The Company assesses at each reporting date whether
comprehensive income include financial assets the credit risk on a financial assets have increased

162
significantly since initial recognition. When making the All financial liabilities are recognized initially at fair
assessment, company consider the change in the risk of value plus, in the case of loans and borrowings,
default occurring over the expected life of the financial transaction costs that are directly attributable to the
assets. acquisition or issue of such financial liability.

The Company recognises a loss allowance since its The Company’s financial liabilities include trade
initial recognition for expected credit loss on financial and other payables, bank overdrafts and loans and
assets that are measured at amortised cost. For the borrowings.
financial assets, which the credit risk on that has
increased significantly since initial recognision, the 3.3.3.2 Subsequent measurement
company measures and recognises the loss allowance
at an amount equal to the life time expected credit 3.3.3.2.1 Financial liabilities at amortized cost
loss. Financial liabilities at amortized cost include financial
liabilities designated upon initial recognition as at
Credit risk on financial assets has not increased amortized cost.
significantly since its initial recognision, the company
measure the loss allowance for that assets at After initial recognition, interest bearing loans and
an amount equel to 12 months expected credit borrowings are subsequently measured at amortized
loss. cost using the effective interest rate method unless the
effect of discounting would be insignificant in which
Trade receivable result from SLFRS 15 are measured the case they are stated at cost.
loss allowance at an amount equel to life time expected
credit losses. Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees
3.3.2.1 Credit - impaired financial assets or costs that are an integral part of the EIR. The
The company assesses whether the financial assets EIR amortization is included in finance costs in the
which are carried at amortised cost are credit impaired Statement of Profit or Loss.
at each reporting date and recognises a life time
expected credit loss. Loss allowance are deducted from 3.3.3.3 De-recognition
the gross carrying amount of the assets. A financial liability is derecognized when the obligation
under the liability is discharged or cancelled or expires.
3.3.2.2 Write-off
Gross carrying amount of a financial asset is written off 3.4 Inventories
when the Company has no reasonable expectations of Inventories are measured at the lower of cost and net
recovering the financial asset in its entirely or portion realizable value.
there of.
The cost of inventories is comprised of all costs of
3.3.3 Financial liabilities purchase, costs of conversion and other costs incurred
in bringing the inventories to their present location and
3.3.3.1 Initial recognition and measurement condition.
Financial liabilities within the scope of SLFRS 09 are
classified as financial liabilities at amortized cost, as Costs incurred in bringing each product to its present
appropriate. The Company determines the classification location and condition are accounted for as follows:
of its financial liabilities at initial recognition.

163
a) All inventory items except manufactured Fund contribution are covered by relevant contribution
inventories and work-in-progress are measured funds in line with respective statutes and regulations.
using first in, first out basis. The Company contributes 12% of gross emoluments
of Executive and Other employees respectively to
b) Manufactured inventories and work-in-progress are the Employees’ Provident Fund and 3% of gross
measured at weighted average factory cost which emoluments of all employees to the Employees’
includes all direct expenditure and appropriate Trust Fund respectively. Employer’s contributions to
shares of production overhead based on normal the defined contribution plans are recognized as an
operating capacity but excluding borrowing expense in profit or loss when incurred.
costs.
3.7 Stated capital
Net realizable value is the estimated selling price in the Stated capital consists solely of ordinary share capital.
ordinary course of business, less the estimated costs of Ordinary shares are classified as equity.
completion and the estimated costs necessary to make
the sale. Incremental costs directly attributable to the issue of
new shares are shown as a deduction, net of tax, in
3.5 Cash and Cash Equivalents equity from the proceeds.
Cash and cash equivalents comprise cash balances, call
deposits, demand deposits, and short term highly liquid 3.8 Provisions
investments readily convertible to known amounts A provision is recognized if, as a result of a past event
of cash and subject to insignificant risk of changes the Company has a present legal or constructive
in value net of bank overdrafts that are repayable on obligation that can be estimated reliably, and it is
demand for the purpose of the statement of cash probable that an outflow of economic benefit will be
flows. required to settle the obligation.
3.6 Post employment benefits 3.9 Statement of comprehensive income

3.6.1 Defined benefit plan 3.9.1 Revenue from contract with customers
Defined benefit plans are post-employment benefit
plans other than defined contribution plans. The 3.9.1.1 Revenue recognition
liability recognized in the statement of financial Revenue from contract with customers is recognized
position in respect of defined benefit plan is the present within the scope of SLFRS 15 when the following
value of the defined benefit obligation at the reporting criteria are met.
date. The defined benefit obligation is calculated using
the “Projected Unit Credit Method” with the advice of - The parties to the contract have approved the
an indipendent professional actuary as requested by contract and are committed to perform their
LKAS 19 on ‘ Employee Benifit’. respective obligation.
- Company can identify each party’s rights
Past service costs are recognized immediately in the regarding the goods or services to be transferred.
profit or loss while the actuarial gains and losses are - Ability to identify the payment terms for the
charged or credited to profit or loss in the period in goods or services to be transferred.
which they arise. The liability is not externally funded. - The contract has commercial substance and
- It is probable that the company will collect the
3.6.2 Defined contribution plans - EPF and ETF consideration in exchange for the goods or
All employees who are eligible for Employees’ services that will be transferred to the customer.”
Provident Fund contributions and Employees’ Trust

164
3.9.1.1.1 Revenue from sale of goods 3.9.2 Expenditure recognition
At the contract inception company assess the goods
or services promised in a contract with a customer and 3.9.2.1 Operating expenses
identify as a performance obligation each promise to All expenses incurred in day to day operations of the
transfer to the customer either: business and in maintaining the property, plant and
equipment in a state of efficiency has been charged to
- A good or service that is distinct or the Statement of comprehensive income in arriving at
- A series of distinct goods or services that are the profit for the year. Provision has also been made
substantially the same and that have the same for impairment of financial assets, slow moving stocks,
pattern of transfer to the customer all known liabilities and depreciation on property, plant
and equipment.
Company recognise revenue when the entity satisfies
a performance obligation by transferring a promised 3.9.2.2 Borrowing costs
good or service to a customer. Goods or services are Borrowing costs directly attributable to acquisition,
transferred when the customer obtains control of that construction or production of assets that necessarily
asset. The amount of the transaction price which is takes a substantial period of time to get ready for its
allocated to a performance obligation is recognise as intended use or sale are capitalized as part of the cost
revenue. of the respective assets. All other borrowing costs are
expensed in the period they occur. Borrowing costs
Company consider the terms of the contract and consist of interest and other costs that Company
its customary business practices to determine the incurs in connection with the borrowing of funds.
transaction price. The transaction price is the amount
of consideration to which the company expects to be 3.9.3 Net finance income / (expenses)
entitled in exchange for transferring promised goods or Finance costs comprise interest expense on borrowings,
services to a customer excluding amounts collected on unwinding of the discount on provisions, changes in
be half of third parties. the fair value of financial assets at fair value through
profit or loss, impairment losses recognized on financial
3.9.1.1.2 Other income assets, borrowing costs that are not directly attributable
to the acquisition, construction or production of a
Interest income qualifying asset are recognized in profit or loss using
For all financial instruments measured at amortized the effective interest method.
cost and interest bearing financial assets classified
as fair value through profit and loss, interest income 3.9.4 Taxation
or expense is recorded using the effective interest
rate (EIR), which is the rate that exactly discounts the 3.9.4.1 Current taxes
estimated future cash payments or receipts through the The provision for income tax on Sri Lankan operation
expected life of the financial instrument or a shorter is based on the elements of income and expenditures
period, where appropriate, to the net carrying amount reported in the financial statements and computed
of the financial asset or liability. Interest income is with in accordance with the provisions of the Inland
included in finance income in the statement of profit or Revenue Act No 24 of 2017.
loss.
The relevant details are disclosed in the respective notes
to the financial statements.


165
3.9.4.2 Deferred taxation the purpose of presentation of Statement of Cash
Deferred taxation is provided, using the liability Flows which has been prepared using the ‘Indirect
method, on all temporary differences at the reporting Method’.
date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting 3.12 Earning per share
purposes. Basic EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Company
Deferred tax assets are recognized for all deductible by the weighted average number of shares outstanding
temporary differences, carry forward of unused tax during the period.
losses and unused tax credits to the extent that it is
probable that future taxable profits will be available 3.13 Events occurring after the reporting date
against which the deductible temporary differences Events after the reporting period are those events
and carry forward of unused tax losses / credits can be favorable and un favorable, that occur between the
utilized. end of the reporting period and the date when the
financial statements are authorized for issue. The
The carrying amount of deferred tax assets is reviewed materiality of the events occurring after the reporting
at each reporting date and reduced to the extent that period is considered and appropriate adjustments to or
it is no longer probable that the related tax benefit will disclosures are made in the Financial Statements, where
be realized. necessary.

Deferred tax assets and liabilities are measured at the 3.14 Segment reporting
tax rates that are expected to apply to the year when Segment information is provided for the different
the asset is realized or the liability is settled, based business segments of the Company. Business
on tax rates (and tax laws) that have been enacted or segmentation has been determined based on the
substantively enacted as at the reporting date. nature of goods provided by the Company after
considering the risks and rewards of each type of
Deferred tax assets and deferred tax liabilities are product.
offset if legally enforceable right exists to set off
current tax assets against current tax liabilities and The activities of the segments are described in note 29
when the deferred taxes relate to the same taxable to the financial statements.
entity and the same taxation authority.
04. Critical Accounting Estimates,
3.10 Related part transactions Assumptions and Judgments
Disclosure has been made in respect of the transactions Estimates, assumptions and judgments are continually
in which one party has the ability to control or exercise evaluated and are based on historical experience
significant influence over the financial and operating and other factors, including expectations of future
policies/decisions of the other, irrespective of whether a events that are believed to be reasonable under the
price is being charged or not. circumstances. The Company makes estimates and
assumptions concerning the future. The resulting
The relevant details are disclosed in the respective notes accounting estimates will, by definition, seldom
to the financial statements. equal the related actual results. The estimates and
assumptions that have a significant risk of causing
3.11 Cash flows a material adjustment to the carrying amount of
Interest received and dividends received are classified assets and liabilities within the next financial year are
as investing cash flows, while dividend paid and discussed below.
interest paid, is classified as financing cash flows for

166
4.1 Estimated useful lives of property, plant and estimated future cash outflows expected to be required
equipment to settle the pension obligations. In determining the
The Company reviews annually the estimated useful appropriate discount rate, the Company considers
lives of Property, plant and equipment based on factors the interest rates of government bonds that are
such as business plan and strategies, expected level denominated in the currency in which the benefits will
of usage and future developments. Future results of be paid and that have terms to maturity approximating
operations could be materially affected by changes the terms of the related pension obligation.
in these estimates brought about by changes in the
factors mentioned. A reduction in the estimated useful 05. Financial Risk Management
lives of PPE would increase the recorded depreciation The Board of Directors have overall responsibility for the
charge and decrease the property, plant and equipment establishment and oversight of the risk management
balance. framework, including policies and procedures. In
discharging its governance responsibility it operates
4.2 Estimated useful lives of intangible assets through the Board of Directors and the Audit
The Company reviews annually the estimated useful Committee.
lives of intangible assets based on factors such as
business plan and strategies, expected level of usage The Company has exposure to the following risks from
and future developments. Future results of operations its use of financial instruments
could be materially affected by changes in these
estimates brought about by changes in the factors Credit Risk
mentioned. A reduction in the estimated useful lives Finance and Interest rate risk
of intangible assets would increase the recorded Foreign Exchange rate risk
amortization charge and decrease the intangible assets Operational Process risk
balance. Investment risk / Project Management risk
Liquidity risk
4.3 Defined benefit obligations
The present value of the gratuity obligations depends 5.1 Credit risk
on a number of factors that are determined on an Credit risk is the risk of financial loss to the company if
actuarial basis using a number of assumptions. The a customer fails to meet its contractual obligations, and
assumptions used in determining the net cost for arises principally from the company’s receivables from
gratuity include the discount rate. Any changes in customers.
these assumptions will impact the carrying amount of
gratuity obligations. 5.1.1 Exposure to credit risk
The carrying amount of financial assets represents the
The Company determines the appropriate discount maximum credit exposure. The maximum exposure to
rate at the end of each year. This is the interest rate credit risk at the end of the reporting period was as
that should be used to determine the present value of follows:
As at 31 March 2020 2019

Rs. Rs.
Trade receivables 328,853,748 429,253,679

328,853,748 429,253,679

167
5.1.1.1 The maximum exposure to credit risk for trade receivables at the end of the reporting period by type of counterparty is as
follows:

As at 31 March 2020 2019
Rs. Rs.
Trade receivables from related parties 80,330,782 115,908,531

Trade receivables - others 248,522,966 313,345,148
328,853,748 429,253,679
Amounts due from related companies were given on normal credit terms.

5.1.1.2 The maximum exposure to credit risk for net trade receivables as at the reporting date by geographic was as follows:
As at 31 March 2020 2019

Rs. Rs.

Domestic 225,602,933 261,564,179
Export 103,250,815 167,689,500
328,853,748 429,253,679
5.1.2 The Company has received refundable deposit of Rs. 8.7 Mn from authorized distributors for PVC products.

5.2 Finance and interest rate risk
Finance risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation.

5.2.1 The following are the contractual maturities of financial liabilities within 12 months :
As at 31 March 2020 2019

Rs. Rs.
Carrying amount
Trade Creditors - Related Companies 78,828,350 96,311,652
Trade Creditors - Direct Import 8,362,497 330,611
Trade Creditors - Other 26,728,527 26,428,460
Customer advances 17,055,775 6,274,033
Expenses creditors 21,918,096 27,334,452
Statutory payables 5,337,670 16,402,847
Bank borrowings - Overdrafts 85,279,432 81,715,543
Bank borrowings - Short Term Borrowings 197,459,750 202,546,676
440,970,097 457,344,274
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier or at significantly
different amounts.
168
5.3 Foreign Exchange rate risk
The Company is exposed to currency risk on sales and purchases that are denominated in a currency other than Sri Lankan
Rupees (LKR), The foreign currencies in which the set transactions primarily denominated are United State Dollars (USD) and
Euro.

5.3.1 The Company’s exposure to foreign currency risk based on notional amounts was as follows:
As at 31 March (in Rs) 2020 2019

USD EUR USD EUR
Foreign currency advances paid 20,265 - 1,636 1,457
Trade and other receivables 162,531 310,086 952,078 847,773
Cash and cash equivalents 33,137 242,025 4,156 3,701
Short term borrowings and other payables (610,000) (170,000) (1,149,984) (1,023,997)
Gross statement of financial position exposure (394,067) 382,111 (192,114) (171,066)
5.3.2 The following significant exchange rates were applicable during the year:
Average rate Reporting date spot rate

2020 2019 2020 2019
Rs. Rs. Rs. Rs.
USD 189.91 168.72 188.62 176.13
EUR 209.42 195.25 209.42 197.80

169
5.4 Risk Management
The approach to mitigate the exposure of the above risks by the management is as follows;
Risk Risk assessment Risk Management Risk Ranking

identification
5.4.1 Credit Risk Risk arising due to default of The following stringent assessment procedures to Medium
payment. Higher credit risk may ensure credit worthiness of the customers prior to the
adversely impact both liquidity granting of credit.
and profitability.
a) Credit is allowed only to approved customers
which is reviewed yearly.
b) Obtaining bank guarantees, deposits, post- dated

cheques from local debtors and insurance cover for
export debtors whenever there is a doubt about recovery.
c) Closely monitoring the debtor balances and laying

down action plans accordingly.
5.4.2 Operational Internal process failures, a) The Company sources its products and services from Medium
process Risk fraud, pilferage and breakdown approved suppliers.
of internal controls
b) Outsource internal audit to reputed audit firm to
review and report on the adequacy of the
financial and operational controls to the
Audit Committee.
c) Systems and procedures are in place to ensure

compliance with internal controls, which are
monitored and reviewed for their continued
efficiency and effectiveness.
d) Provide focused and structured training to staff

at all levels to familiarize themselves with
processes and procedures.
e) Carrying out mandatory preventive maintenance

programs.

170
Risk Risk assessment Risk Management Risk Ranking
identification
5.4.3 Financing Inability to satisfy debt a) To have adequate facilities for obtaining USD loans and Low
and Interest repayments and obtain the borrowings in foreign currency to bring down
rate risk best interest rates. finance charges.
b) Funding of long- term assets through equity and

long- term loans.
c) To have adequate short term borrowing facilities

available at all times.

d) Low gearing is maintained.
5.4.4 Foreign Depreciation of the rupee value a) Exchange rate movements are taken in to consideration High
Exchange and loss of exchange in before conversion and pricing.
rate Risk conversion in relation to export
proceeds, import payments b) Practicing effective hedging techniques.
and foreign currency
debt transactions. c) Continuous evaluation of the impact of
Central Bank regulations.
5.4.5 Investment/ New projects / Capital a) Conduct a PESTEL analysis and feasibility study Low
Project expenditures involve high before initiating the projects.
Management risks and uncertainties in terms
Risks of delays and cost overruns. b) Board approval should be received for all investments.
Failure of major projects will
affect profitability, capital c) Post-evaluation of the projects is carried out for
structure and reputation. each investment.
5.4.6 Liquidity
Risk Inadequate liquidity can have an a) The liquidity position of the Company is regularly Medium
adverse impact on ongoing reviewed and reported to the Board.
operations, marketing and
investment in new products b) Projected net borrowings are covered by committed
and brands. banking facilities and a healthy industry-related gearing
ratio is maintained.
c) The Company’s good relationships and facilities with

many banks and other sources of finance ensure reliable
access to funds.

171
NOTE Rs. Rs.
06. Revenue
Sale of goods Note 06.1 1,590,202,615 1,569,344,864
1,590,202,615 1,569,344,864
6.1 - Composition of Revenue

Export turnover 675,133,367 752,629,633
Local turnover 915,069,248 816,715,231
1,590,202,615 1,569,344,864
07. Other Income

Other income 373,593 1,635,654
Reversal of over provided specific provision for receivables 2,093,773 3,511,026
Fair value gain on financial instruments 1,376,140 986,325
3,843,506 6,133,005
08. Profit from Operations is Stated after charging all expenses including
following:
Cost of purchase 950,180,207 903,669,481
Employee benefit expenses Note 08.1 297,438,457 270,528,853
Other overheads 8,473,506 7,436,611
Depreciation 57,767,850 54,379,750
Amortization of intangible assets 871,836 871,836
Export expenses 14,897,769 13,461,728
Machinery maintenance 19,234,677 22,809,358
Sub contract wages 15,953,546 16,016,763
Auditors remuneration - Assurance services 409,300 389,600
Auditors remuneration - Non assurance services 69,900 75,600
Others 194,612,482 214,306,039
Total cost of purchase, distribution and administrative expenses 1,559,909,530 1,503,945,619
8.1 Employee Benefit Expenses

Directors emoluments 27,780,941 12,229,666
Bonus and other allowances 863,192 2,816,511
Salaries, wages, overtime and other staff costs 240,652,378 229,954,730
Post employment benefit - Gratuity 8,399,581 6,991,516
EPF and ETF 19,742,365 18,536,430
297,438,457 270,528,853

172
NOTE Rs. Rs.
9. Net Finance Income

9.1 Finance Income
Interest income from fixed deposit 2,089,517 1,808,497
Interest income from foreign currency deposits 278,531 569,178
Interest income from treasury bills 1,403,584 1,290,931
Interest income from debentures 2,275,000 2,817,228
Interest income - Staff loans 86,001 99,939
Related party due charges 1,007,477 -
7,140,110 6,585,773
9.2 Finance Cost
Interest expenses on bank borrowings 13,583,409 10,933,049
Foreign exchange loss 6,842,681 17,058,039
Overdraft interest 8,764,498 6,492,380
29,190,588 34,483,468
Net finance cost (22,050,478) (27,897,695)
10. Income Tax Expenses

Income tax provision for the year Note 10.1 11,190,063 4,692,909
(Over) /under provision in previous years - 237,219
Origination and reversal of temporary differences
of deferred tax assets and liabilities Note 17 (11,414,959) 13,697,264
(224,896) 18,627,392

10.1 Reconciliation between Income Tax Expenses and the Accounting Profits
Profit before income tax 12,086,113 43,634,555
Tax effects of:
– Total disallowable expenses 76,230,720 68,535,926
– Total allowable expenses (45,496,014) (68,023,068)
Taxable income / (taxable loss) from ordinary activities 42,820,819 44,147,413
Income not part of adjusted business profit / (loss) (8,516,250) (4,085,753)
Adjusted business profit / (loss) 34,304,569 40,061,660
Tax loss claimed on adjusted business profit - (26,400,699)
Taxable business profit 34,304,569 13,660,961
Interest on fixed deposits and treasury bills 7,140,110 3,099,428
Total taxable income 41,444,679 16,760,389
Total taxable income
Taxable @ 24% 10,361,170 -
Taxable @ 28% 31,083,509 16,760,389
Income tax expenses
Tax @ 24% 2,486,681 -
Tax @ 28% 8,703,383 4,692,909
Tax for the year 11,190,063 4,692,909

173
Rs. Rs.
11. Earnings per Share

Basic earnings per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted
average number of ordinary shares outstanding at year end.
Amount Used as the Numerator

Profit for the year 12,311,009 25,007,162
Profit attributable to equity holders of the Company 12,311,009 25,007,162

Number of Ordinary Shares Used as the Denominator
Weighted average number of ordinary shares in issue 4,232,771 4,232,771
Weighted average number of ordinary shares for earnings per share 4,232,771 4,232,771

Basic earnings per share (Rs.Cts) 2.91 5.91

12. Dividend Per Share
Amounts used as numerator
Dividend paid 8,465,542 5,290,964
Number of ordinary shares used as the denominator

Weighted average number of ordinary shares in issue 4,232,771 4,232,771
Dividend per share (Rs. Cts.) 2.00 1.25

174
13. Property, Plant and Equipment

As at As at
01.04.2019 Additions Disposals 31.03.2020
COST/VALUATION Rs. Rs. Rs. Rs.
Freehold assets
Freehold land 19,365,655 2,625,000 - 21,990,655
Buildings 197,842,247 16,708,069 - 214,550,316
Plant and machinery 420,205,576 23,935,009 - 444,140,586
Machine accessories 150,073,216 850,305 - 150,923,521
Furniture and fittings 1,726,585 - - 1,726,585
Office equipment 16,050,578 2,699,154 - 18,749,733
Motor vehicles 9,580,824 - - 9,580,824
814,844,681 46,817,537 - 861,662,219

ACCUMULATED DEPRECIATION
Freehold assets
Freehold land - - - -
Buildings 90,689,219 10,685,523 - 101,374,742
Plant and machinery 189,445,567 35,110,474 - 224,556,041
Machine accessories 94,899,365 9,796,449 - 104,695,814
Furniture and fittings 813,846 120,192 - 934,038
Office equipment 7,128,319 1,477,948 - 8,606,267
Motor vehicles 8,144,495 577,264 - 8,721,759
391,120,811 57,767,850 - 448,888,661

WRITTEN DOWN VALUE
Freehold assets
Freehold land 19,365,655 - - 21,990,655
Buildings 107,153,028 - - 113,175,574
Plant and machinery 230,760,010 - - 219,584,545
Machine accessories 55,173,850 - - 46,227,706
Furniture and fittings 912,739 - - 792,547
Office equipment 8,922,259 - - 10,143,466
Motor vehicles 1,436,329 - - 859,065
Net book value
423,723,870 - - 412,773,558

175
13.1 Other explanatory notes for Property, Plant and Equipment
(a) Fully depreciated property, plant and equipment
A class wise analysis of the initial cost of fully depreciated property, plant and equipment of the Company which are still in
use as at the reporting date is as follows,
As at 2020 2019
Rs. Rs.
Furniture and fittings 126,413 -
Motor vehicles 3,142,328 -
Office equipment 2,186,348 -
Plant and machinery 5,385,660 -
Machine Accessories 17,913,819 -
Total 28,754,568 -
(b) Temporarily idle property, plant and equipment

There were no property, plant and equipment idle from active use as at the reporting date.
(c) Property, plant and equipment retired from active use

There were no property, plant and equipment retired from active use as at the reporting date.
(d) Title restriction of property, plant and equipment

There were no restrictions on the title of property, plant and equipment as at the reporting date.
(e) Land holdings

The value of factory lands situated at Akuressa Road, Bogahagoda, Galle was valued by independent incorporated valuer
at a value of Rs. 260.5 Mn as at 27th September 2018. Paddy field at Akuressa Road Bogahagada was valued at Rs.1.1Mn.
PVC factory at Gilcroft Estate, Kiribathwila, Ampegama, Baddegama was purchased in 2014/15 and its market value is Rs.
20 Mn. The factory at No: 57B, Industrial Processing Zone, Nagoda, Kaluthara was purchased in 2010/2011 and its current
market value is Rs. 25 Mn.
Location Address No. of Buildings Extent of land Extent of Building

Galle Factory Akuressa Road, 10 Buildings 7 Acres 2 Roods & 94,900 Sq ft
Bogahagoda, Galle. 40 Perches
Kalutara Factory No. 57/B, Fullerton 03 Buildings 120 Perches 5,990 Sq ft
Industrial Zone,
Nagoda, Kalutara.
Baddegama Factory Gilcroft Estate, 01 Building 2 Acres 2 Roods 25,191 Sq ft
Kiribathwila, & 0.11 Perches
Ampegama, Baddegama
Paddy Field Akuressa Road, 1 Acres 3 Roods
Bohagagoda Bogahagoda, Galle. - & 3 Perches -

Total 12 Acres 2 Roods & 124,541 Sq ft
43.11 Perches
The above lands were valued by Mr. D. L. Pathmasiri, Bsc.(Sp) Estate Management and valuation, Associate Member
of Institute of Values of Sri Lanka, of Pathmasiri Liyanage and Associates Private Limited , No 06,1st Floor, City View
Shopping Complex,Talbat Town,Galle in September 2018.
During the year the Company bought 23 perches of neighbouring land for Rs. 2.6 Mn

176
As at 31st March 2020 2019
Rs. Rs.
14. Intangible Assets

Cost
Balance at the beginning of the year 8,812,172 8,812,172
Additions during the year - -
Balance at the end of the year 8,812,172 8,812,172

Amortisation
Charge for the year 871,836 871,836
Net book value 4,452,992 5,324,828
15. Financial Assets at Fair Value through Profit and Loss

Quoted debentures Note 15.1 20,079,350 18,703,210
20,079,350 18,703,210
No of Market Market Value Market Value

15.1. Quoted Debentures Debentures Price As at 31.03.2020 As at 31.03.2019
Rs. Cts Rs. Rs.
Commercial Bank PLC 100,000 100.05 10,004,980 9,000,950
Hatton National Bank PLC 50,000 100.20 5,010,070 4,700,000
Sampath Bank 50,000 101.29 5,064,300 5,002,260
20,079,350 18,703,210

Rs. Rs.
16. Financial Assets at Amortized Cost

Investment in treasury bills 16,401,793 14,965,959
16,401,793 14,965,959
Based on available Auction market information, the fair value of investments in treasury bills equals to its carrying value as at
31st March 2020.
17. Deferred Tax Assets and Liabilities

17.1 Deferred tax assets
Recognized in profit and loss 139,851 (5,924,719)
Recognized in other comprehensive income (134,742) 318,149

177
Rs. Rs.
17.2 Deferred tax liabilities

Recognized in profit and loss (11,275,108) 7,772,544

Net deferred tax liability 37,189,083 48,469,300

17.3 Composition of net deferred tax liability is as follows;
Deferred tax liability on property, plant and equipment 48,416,109 59,691,217
Deferred tax asset on retirement benefit obligation (11,227,026) (11,221,917)
37,189,083 48,469,300
18. Inventories
Raw materials 148,948,399 85,620,271
Work in progress 28,283,599 40,241,600
Finished goods 88,164,113 69,738,121
Stationery, consumable maintenance and energy 10,022,900 8,666,161
275,419,011 204,266,153
Provision for inventories (5,928,928) (5,928,928)
269,490,083 198,337,225

18.1 Movements on the provision for inventory is as follows:
Provision / (reversal) for inventory impairment - 72,661

Note Rs. Rs.
19. Trade and Other Receivables

Trade receivables - Local 148,101,121 147,749,421
Trade receivables - Foreign 103,250,815 167,689,500
Trade receivables - Related parties Note 19.1 80,330,782 115,908,531
Less: Specific Provision for doubtful trade receivables (2,828,970) (2,093,773)
Trade receivables - net 328,853,748 429,253,679
Other receivables 5,492,643 2,944,689
Deposits and prepayments 6,124,111 7,689,173
Advances 14,710,319 28,367,425
VAT receivable - 3,559,485
NBT receivables 649,948 -
355,830,769 471,814,451

178
Note Rs. Rs.
19.1 Trade Receivables - Related parties

D. Samson Industries (Pvt) Ltd. 60,458,832 101,441,648
Samson Engineers (Pvt) Ltd. 21,180 67,913
Samson Trading (Pvt) Ltd. 11,757,970 3,830,792
Samson Rubber Products (Pvt) Ltd. 2,194,036 1,610,345
Samson Compounds (Pvt) Ltd. 5,402,634 8,948,587
Samson Rubber Industries (Pvt) Ltd. - 9,246
Samson Rajarata Tiles Pvt) Ltd. 496,130 -
80,330,782 115,908,531
19.2 Movement in provision for doubtful trade receivables

Balance at the begenning of the year 2,093,773 5,190,549
Provision / (reversal) for the year 2,828,970 414,250
Written off during the year (2,093,773) (3,511,026)

As of 31st March 2020, Trade Receivables of Rs 283,361,670/- (as of 31st March 2019 was Rs. 378,784,897/-) were fully
performing.
As of 31st March 2020, Trade Receivables of Rs.45,492,078 (as of 31st March 2019 was Rs. 50,468,782/-) were past due
but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The
aging analysis of these trade receivables is as follows:
2020 2019

Rs. Rs.
3 to 6 months 40,631,939 40,210,331
over 6 months 4,860,139 10,258,451
45,492,078 50,468,782

As of 31st March 2020, trade receivables of Rs 2,828,970 (as of 31 March 2019 Rs 2,093,773/-) were impaired and provided
for. The individually impaired receivables mainly relate to customers, who are in unexpectedly difficult economic situations. It
was assessed that no portion of the impairment provision for receivables is expected to be recovered.

Note Rs. Rs.
19.3 Analysis of current financial instruments by category

Financial assets at amortized cost
Trade and other receivables excluding prepayments, statutory payments and advances 334,996,339 432,198,368
Cash and cash equivalents Note 20 83,842,921 43,912,089
418,839,260 476,110,457

Financial liabilities at amortized cost
Trade and other payables (excluding statutory liabilities and advances) Note 23 135,837,470 150,405,175
Borrowings Note 24 282,739,182 284,262,219
418,576,652 434,667,394
179
19.4 Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
end of the reporting period was as follows:

Note Rs. Rs.

Trade receivables Note 19 328,853,748 429,253,679
328,853,748 429,253,679

The maximum exposure to credit risk for trade receivables at the end of the reporting period by type of counterparty is as
follows:

Trade receivables from related parties Note 19.1 80,330,782 115,908,531
Trade receivables - others 248,522,966 313,345,148
328,853,748 429,253,679
Amounts due from related companies were given on normal credit terms.
20. Cash and Cash Equivalents

Cash at bank 60,172,796 21,208,093
Cash on hand 733,840 875,900
Short term deposits 22,936,285 21,828,096
83,842,921 43,912,089

20.1 For the purpose of statement of cash flows, cash and cash equivalents comprise the following:

Cash at bank 60,172,796 21,208,093
Cash on hand 733,840 875,900
Short term deposits 22,936,285 21,828,096
Bank overdrafts (85,279,432) (81,715,543)
(1,436,511) (37,803,454)
The Company held cash and cash equivalents with reputed commercial banks.

Note Rs. Rs.
21. Stated Capital

4,232,771 Number of Ordinary shares issued and fully paid 109,600,211 109,600,211
109,600,211 109,600,211

180
Note Rs. Rs.
22. Retirement Benefit Obligation

Movement in the Present Value of Defined Benefit Obligation
Current service cost 3,990,971 3,621,412
Interest cost 4,408,610 3,370,104
Actuarial (gain) / loss on obligation (561,423) 1,136,247
Benefit paid (1,137,155) (1,750,528)
The expenses is recognised in the following line items in the Statement of Profit or Loss.
For the year ended 31st March
Cost of sales 5,161,833 4,194,910
Administrative expenses 3,237,748 2,796,606
As at 31st March 2020, the gratuity liability was actuarially valued under the Projected Unit Credit (PUC) method by a
professionally qualified actuary Mr. Munisamy Poopalanathan of Actuarial and Management Consultants (Pvt) Ltd, 1st
floor,434, R.A. De Mel Mawatha, Colombo 03 who is a qualified actuary, A.I.A (London). A required account provision of the
Company as at 31st March 2020 has been determined based on the recommendation on this report.

22.1 Actuarial assumptions:
2020 2019
Salary incremental rate 9.00% 10.00%
Rate of discount 10.00% 11.00%
Staff turnover rate 5% to 48% 4% to 42%

Salary increment rate decresed by 1% in the current period based on the management decision considering the adverse
economic condition in the country. Rate of discount is set based on published average (4 - 10 years) government treasury
bond rate prevailing as at 16 January 2020.
Staff turnover rate varies ranging from 5% to 48% per annum based on the category on the age limit.
Provision has been made for retirement gratuities in conformity with LKAS 19 - Employee Benefits.

22.2 Sensitivity Analysis
In order to illustrate the significance of the salary escalation and discount rate used in the actuarial valuation as at 31st
March 2020, sensitivity analysis has been carried out as follows;

Discount Rate Salary Escalation Rate Staff Turnover Rate Present Value of
Defined Benefit
Obligation - (Rs.)
1% Increase As per Note 22.1 As per Note 22.1 44,758,635

1% Decrease As per Note 22.1 As per Note 22.1 48,992,818
As per Note 22.1 1% Increase As per Note 22.1 49,106,883

As per Note 22.1 1% Decrease As per Note 22.1 44,618,624
As per Note 22.1 As per Note 22.1 10% Increase 46,785,979

As per Note 22.1 As per Note 22.1 10% Decrease 46,766,660

181
Note Rs. Rs.
22.3 Distribution of employee benefit obligation over future working lifetime
Within the next 12 months 11,044,452 5,577,788
Between 1 and 2 years 8,167,880 10,377,622
Between 3 and 5 years 12,777,535 9,813,867
Beyond 5 years 14,789,410 14,308,997
46,779,277 40,078,274
23. Trade and Other Payables
Trade creditors - Related Companies Note 23.1 78,828,350 96,311,652
Trade creditors - Direct Import 8,362,497 330,611
Trade creditors - Other 26,728,527 26,428,460
Customer advances 17,055,775 6,274,033
Expense creditors 21,918,096 27,334,452
Statutory payables 5,337,670 16,402,847
158,230,915 173,082,055
23.1 Trade Creditors - Related Companies
D. Samson Industries (Pvt) Ltd. 293,092 181,099
Samson Reclaim Rubbers Ltd. 243,900 158,900
Samson Rubber Products (Pvt) Ltd. 15,694 1,363,872
Samson Group Corporate Services (Pvt) Ltd. 390,621 214,301
Samson Compounds (Pvt) Ltd. 76,667,724 94,034,122
D S I Welfare Shop 51,420 31,050
Mount Spring Water (Pvt) Ltd. - 2,400
D S I Factory Outlet - 10,000
D Tech (Pvt) Ltd 465,982 315,908
Samson Rubber Industries(Pvt) Ltd 78,935 -
D.Samson & Sons (Pvt) Ltd 522,750 -
Samson Engineers (Pvt) Ltd 98,233 -
78,828,350 96,311,652
24. Short Term Borrowings

Bank overdrafts 85,279,432 81,715,543
Other short term borrowings 197,459,750 202,546,676
282,739,182 284,262,219
24.1 - Securities for the above facilities are as follows:

Nature of Asset Nature of the Bank/Institution Securities
Loan Facility
Inventory Overdraft Hatton National Bank PLC Finished Good Stocks & Debtors and
Confirmed order confirmation Packing Credit Loan Hatton National Bank PLC/ DFCC Bank Confirmed Order Confirmation.
Inventory Overdraft Seylan Bank PLC Finished Good Stocks & Debtors.
Fixed deposit Overdraft Bank of Ceylon Fixed deposit of Rs. 4,000,000/-.
Inventory Overdraft Bank of Ceylon Raw Material Stocks
Financial assets Overdraft DFCC Vardhana Bank PLC Treasury bills of Rs. 16,401,793/-
Inventory Overdraft Commercial Bank PLC Finished Good Stocks & Debtors.
Inventory Overdraft Nations Trust Bank PLC Raw Material Stocks.

182
Note Rs. Rs.
24.2 Other short term borrowings
Obtained during the year 637,219,499 419,982,063
Exchange gain/(loss) 9,916,694 (4,920,976)
Repayments during the year (652,223,119) (347,174,473)
25. Commitments and Contingencies

There were no commitments and contingencies existing as at the reporting date.

26. Events Occurring after the Reporting date
No circumstances have arisen, since reporting date, which would require adjustments to, or disclosure, in the financial
statements other than disclosed below:
At the Board Meeting held on 14th August 2020, Final divident of Rs. 1.00 per share amounting to Rs. 4,232,771 has been
proposed for the year ended 31st March 2020 by the Board of Directors.

27. Related Party Disclosures
Details of significant related party disclosures are as follows:
27.1 Parent and ultimate controlling party

Company does not have an identifiable parent of its own.

27.2 Key Management Personnel of the Company
The Key Management personnel (KMP) comprise the members of its Board of Directors. Directors’ remuneration for the
financial year ended March 31, 2020 is given in note 8.1 to the financial statements.

Dr. D.S. Rajapaksa - (Chairman)
Mr. D.K. Rajapaksa - (Managing Director)
Mr. D.R. Rajapaksa
Mr. G.H.A. Wimalasena - (Retired on 14th August 2020)
Mr. T.K. Bandaranayake
Mr. D.G.P.S. Abeygunawardana - (Director/General Manager)
Mr. D.D. A. Rajapaksa
Mr. D.C.J. Rajapaksa

27.3 Transactions with Key Management Personnel of the Company
27.3.1 Key Management Personnel Compensation

For the year ended 31 March
2020 2019
Rs. Rs.
Short-term employee benefits 27,780,941 12,229,666
27,780,941 12,229,666
The Company has not incurred any amount as termination benefits or post employment benefits on account of the key
managerial personnel during the year.

183
27.4 Directors Interest In Contracts with the Company
‘None of the directors of the Company had any direct or indirect interests in any existing or proposed contracts with the
Company other than those stated below:

‘Dr. D.S. RAJAPAKSA who is a director of the Company is also holding directorships in the following Companies within the
group.

Name of Company Relationship
Samson Plantations (Pvt) Ltd. Director

‘Mr. D.K RAJAPAKSA who is a director of the Company is also holding directorships in the following Companies within the
group.

Samson Plantations (Pvt) Ltd Director

‘Mr. D.R. RAJAPAKSA who is a director of the Company is also holding directorships in the following Companies within the
group.

Samson Rubber Industries (Pvt) Ltd. Managing Director
Vechenson (Pvt) Ltd Managing Director
Samson Rajarata Tiles (Pvt) Ltd. Managing Director
Samson Rubber Products (Pvt) Ltd Managing Director
D. Samson Industries (Pvt) Ltd. Director
DSI Samson Group (Pvt) Ltd. Managing Director
Samson (Exports) Ltd. Director

‘Mr. D.D.A Rajapaksa who is a director of the company is also holding directorships in the following Companies within the group.

Samson Insurance Broker (Pvt) Ltd Director
Samtessi Brush Manufacturers (Pvt) Ltd. Director
Samson Investments (Pvt) Ltd. Director
Samson Compounds (Pvt) Ltd. Director
DSI Samson Group (Pvt) Ltd Director
Samtessi Brush Manufacturers (Pvt) Ltd Director
Samson Rajarata Tiles (Pvt) Ltd Director

184
‘Mr. D.C.J Rajapaksa who is a director of the Company is also holding directorships in the following Companies within the
group.

Samson Compounds (Pvt) Ltd. Director
Samson Group Corporate Services (Pvt) Ltd Director
Samson Bikes (Pvt) Ltd. Director
Samson Engineers (Pvt) Ltd. Director
Hydro Trust Lanka (Pvt) Ltd Director
Werapitiya Hydro Power (Pvt) Ltd Director
Loggal Oya Hydro Power (Pvt) Ltd Director
Samson Plantations (Pvt) Ltd Director
Samson Trading Company (Pvt) Ltd Director
Samson Manufacturers (Pvt) Ltd Director
Samson Rajarata Tiles (Pvt) Ltd Director
Samson Exports (Pvt) Ltd Managing Director
Samson Apparel Makers (Pvt) Ltd Director

27.5 Transaction with related companies
The Company has entered into transactions during the year with following Companies in which some of the directors of the
Company are also directors of those companies.
Company has performed below transaction with D. Samson Industries (Pvt) Ltd and Samson Compounds (Pvt) Ltd during
the year. Agreggate value of which exceed 10% of the revenue of the Company as at 31st March 2019 audited financial
statements, which required additional disclosure in the 2019/20 Annual Report under Colombo Stock Exchange listing rule
9.3.2.
Name of Company Relationship Nature of the Aggregate value of Aggregate value of Terms & condition
transaction the RPTs entered the RPTs entered
during the year during the year as
a % of 2018/19
revenue
D. Samson Industries Affiliate Sales 406,505,944 25.9% Terms equivalent to
(Pvt) Ltd. Interest on those that prevail
delayed payments 1,574,461 0.1% at arm’s length
transaction

Settlement (445,603,963) -28.4% Interest is charged
on overdue
outstanding.
Purchases (3,571,250) -0.2% Interest on dues
are decided based
on bank lending
rate.
Samson Compounds - do - Sales 52,068,042 3.3% Terms equivalent to
(Pvt) Ltd. those that prevail
Interest on delayed at arm’s length
payments (566,984) 0.0% transaction.

Settlement 437,097,494 27.9% Interest is charged
on overdue
Purchases (474,778,109) -30.3% outstanding.
Interest on dues
are decided based
on bank lending
rate.
185
27.5. 1 Transaction with other related companies
Nature of Transactions
Company Relationship 2020 Balance as at 31
Sales Purchases Settlement March 2020
Rs. Rs. Rs. Rs.
Samson Rubber Industries (Pvt) Ltd Affiliate 571,235 (1,302,300) 642,884 (78,935)
Samson Engineers (Pvt) Ltd - do - 103,828 (864,043) 615,249 (77,053)
D Samson & Sons (Pvt) Ltd - do - - (1,922,625) 1,399,875 (522,750)
Samson Group Corporate Services (Pvt) Ltd. - do - - (4,088,595) 3,912,275 (390,621)
Samson Rajarata Tiles (Pvt) Ltd - do - 949,323 - (453,193) 496,130
Samson Reclaim Rubbers Ltd. - do - 11730 (825,347) 728,617 (243,900)
Samson Rubber Products - do - 6,288,213 (9,076,733) 4,720,389 2,178,342
Samson Trading (Pvt) Ltd. - do - 23,254,278 - (15,327,100) 11,757,970
Mount Spring Water (Pvt) Ltd - do - - (64,767) 67,167 -
Samson Bikes (Pvt) Ltd - do - - (10,768) 10,768 -
D Tech (Pvt) Ltd - do - - (1,122,013) 971,939 (465,982)
DSI Welfare Shop - do - - (414,005) 393,635 (51,420)
There were no other related party transactions other than disclosed above.
27.6 Outstanding amounts due from and to related parties are disclosed in Note 19.1 and 23.1 respectively.
27.7 Terms and conditions of transactions with related parties

Related party transactions were made on terms equivalent to those that prevail in arm’s length transactions only if such
terms can be substantiated.

Transactions with related parties were carried out in the ordinary course of the business. Outstanding current account
balances at year end are unsecured, interest free and settlement will be made in cash subject to normal credit terms of 2
months.
28. Impact of Covid-19

The outbreak of COVID-19 in the country during the month of March resulted disruptions to the business operations of the
company. With the relaxation of curfew operations of the company were started with strict adherence to the guidelines
issued by the government to curtail the spread of the virus.

Management of the Company is pursuing measures to reduce debtor exposure and inventory levels and proactively
engaging with banks and suppliers to renegotiate terms in order to effectively manage liquidity levels.
The management has assessed the existing and anticipated effect of COVID-19 on the Company and the appropriateness
of use of the going concern basis. Management considered a range of scenarios to determine the potential impact relating
to expected revenue streams, cash flow streams , cost management, Profitability, the ability to defer non-essential capital
expenditure, debt repayment schedules, potential sources of financing facilities if required and the ability to continue services
to ensure businesses continuity. Having considered the outlook of the company and after due consideration of the range
and likelihood of outcomes, the Directors are satisfied that the Company, has adequate resources to continue in operational
existence for the foreseeable future and continue to adopt the going concern basis in preparing and presenting these
financial statements.

186
29. Segmental Operating Results
The Company organised into operating segments based on their products which are independently managed by the
respective segment managers responsible for the performance of the respective segments under their charge.

(Rs.’000)
DESCRIPTION RUBBER ITEMS PVC ITEMS COMPANY

2020 2019 2020 2019 2020 2019
Total turnover 1,160,566 1,229,569 429,636 339,776 1,590,202 1,569,345

Segmental Expense (1,100,800) (1,119,049) (455,266) (378,763) (1,556,066) (1,497,812)
PROFIT / (LOSS) FROM OPERATIONS 59,766 110,520 (25,630) (38,987) 34,136 71,533
Geographical segment
Europe 522,047 630,704 - - 522,047 630,704
Australia and New Zealand 21,568 2,444 - - 21,568 2,444
America / Canada 22,634 24,337 - - 22,634 24,337
Africa and Middle -east 38,272 38,662 - - 38,272 38,662
Asia / Sri Lanka 556,045 533,422 429,636 339,776 985,681 873,198
Total 1,160,566 1,229,569 429,636 339,776 1,590,202 1,569,345

Financial Position segment
Property, plant and equipment 245,090 270,564 167,683 153,160 412,773 423,724
Inventories 144,772 166,762 124,718 31,575 269,490 198,337
Trade and other receivables 288,888 379,362 66,943 92,452 355,831 471,814
Trade and other payables 82,111 157,009 76,119 16,073 158,230 173,082

187
Country
Profile
103,832 4,375 297 1,603

Private Public Public Quoted Foreign
Companies Companies Companies Companies
“We are the only Public Quoted Company in f) 350 waterfalls and 25,000 water bodies
the manufacturing sector in Galle at present…” g) culture that extends back to over 2,500 years
S ri Lanka is the one of the few places in the world where It is a place where the original soul of Buddhism still flourishes
and where nature’s beauty remains abundant and unspoilt. This
it has a remarkable combination of stunning landscapes,
pristine beaches, captivating cultural heritage and unique is an island of magical proportions, once known as Serendib,
experiences within such a compact location. Within a mere area Taprobane, the Pearl of the Indian Ocean, and Ceylon. Discover
of 65, 610 kilometers Sri Lanka has the following: refreshingly Sri Lanka!
a) 8 UNESCO World Heritage Sites, Colombo, the present commercial capital, is an interesting
b) 1,330 kilometers of coastline (much of it pristine beach) blend of varying influences and is over 600 years old. Almost
c) 15 national parks showcasing an abundance of wildlife one million out of the entire 21.2 million strong population of
d) nearly 500,000 acres of lush tea estates Sri Lanka resides in Colombo, and the country prides itself on
e) 250 acres of botanical gardens having one of the highest literacy rates in Asia. The people of
188
Country Profile (Contd...)
Sri Lanka are of diverse races and faiths, with the majority being Sinhalese who are mainly Buddhists but who harmonize with the
Tamils, Muslims, Burghers and other ethnic groups. Although well on the road to modernization, the country and its people still
cherish their traditional values and take pride in their rich culture, an aspect that continues to attract visitors.
City of Galle
Our factories are located in the city of Galle. The seaside town of Galle is 116 Km away from Colombo by road or rail, down the
south coast of Sri Lanka. We can also take the Southern Expressway to reach the city by one and half hours from Colombo.
The Fort is the heart of the Galle‘s history. The walled city has stood since the early sixteenth century, through the Colonial periods of
the Portuguese, Dutch and British and in our present times is proclaimed as an Archaeological Reserve and has been identified as a
living World Heritage Site.
Unawatuna bay in Galle provides safe swimming and snorkeling, since it is protected by a reef. Rhumassala Kanda is also associated
with the legend of the traditional Ramayana story. The drive to Baddegama is a delightful experience and leads out to the fine
church consecrated in 1825, by Bishop Heber – Bishop of Calcutta.
Today, Galle is a tourist resort which is also a historical city

in Sri Lanka.
“The Sri Lanka’s population has a literacy rate of 92%,

higher than that expected for a third world country; it has
the highest literacy rate in South Asia and overall, one of
the highest literacy rates in Asia.”
1 Land area : 65,610 sq km

2 Commercial capital : Colombo
3 Climate : Tropical ( 10c – 32 c)
4 Population : 21.2 mn
5 Labour force : 8 mn
6 Languages : Sinhala, Tamil and English
as the link language.
7 Currency : Sri Lankan Rupee
8 Legal system : Roman- Dutch and English
9 Literacy rate : 92%
10 Main Religions : Buddhism, Christian,
Islam, Hindu

189
Four-Quarter
Financial Summary
Profit and Loss Accounts For the Quarter ended For the Quarter ended For the Quarter ended For the Quarter ended
30th June 30th September 31st December 31st March
2019 2018 2019 2018 2019 2018 2020 2019
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited

Revenue
Export 189,707 187,983 188,722 184,844 179,789 216,839 116,918 162,966
Local 227,015 165,223 264,725 228,416 215,460 184,353 205,761 238,723
Total revenue 416,722 353,206 453,447 413,259 395,249 401,192 322,679 401,689
Cost of sales (331,911) (276,876) (366,993) (335,565) (331,663) (318,208) (273,905) (331,147)
Gross profit 84,811 76,330 86,454 77,693 63,586 82,984 48,774 70,542
Other operating income 2,066 1,772 2,038 1,601 1,713 2,474 1,696 5,874
Exchange gain / (loss) 1,437 (10,715) (7,302) (1,196) 2,417 (4,944) (3,652) (203)
Selling & distribution cost (17,284) (13,763) (19,685) (17,888) (16,170) (14,827) (15,146) (19,029)
Administrative expenses (45,534) (42,232) (49,218) (42,381) (45,971) (41,434) (44,730) (49,598)
Operating profit 25,496 11,392 12,287 17,830 5,575 24,254 (13,058) 7,586
Finance costs (6,026) (3,079) (5,618) (3,886) (5,929) (4,552) (4,777) (5,908)
Profit before income tax 19,470 8,313 6,669 13,945 (354) 19,703 (17,835) 1,678
Income tax expense (4,867) (3,002) (1,970) (2,806) 2,064 (3,927) 7,448 (8,892)
Profit for the period 14,603 5,311 4,699 11,138 1,710 15,775 (10,387) (7,214)
Balance Sheets As at 30th June As at 30th Septembe As at 31st December As at 31st March
2019 2018 2019 2018 2019 2018 2020 2019
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Assets
Non-current assets
Property plant & equipment 433,429 349,312 420,654 348,041 408,658 366,688 412,774 423,724
Financial assets at amortized cost 15,702 13,774 15,702 13,774 16,402 14,358 16,402 14,966
Financial assets at fair value through profit and loss 19,734 22,816 19,714 22,731 19,839 18,068 20,080 18,703
Intangible assets 5,107 5,979 4,889 5,761 4,671 5,543 4,453 5,325
Deferred tax assets 11,720 16,621 12,119 15,843 12,498 14,943 11,228 11,222
485,692 408,502 473,078 406,150 462,068 419,600 464,937 473,940
Current assets
Inventories 185,753 180,231 294,051 216,384 306,409 258,677 269,491 198,337
Trade & other receivables 476,675 397,732 425,235 366,928 351,430 372,968 355,831 471,814
Income tax refund due 7,225 5,346 - 5,069 - 4,791 4,476 7,247
Cash and cash equivalents 31,258 56,328 46,392 59,302 44,060 33,317 83,843 43,912
700,911 639,637 765,678 647,683 701,899 669,753 713,641 721,311
Total Assets 1,186,603 1,048,139 1,238,756 1,053,833 1,163,967 1,089,353 1,178,578 1,195,251
Equity and liabilities
Stated capital 109,600 109,600 109,600 109,600 109,600 109,600 109,600 109,600
General reserves 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000
Available for Sale Reserve 1,031 18 1,011 - 1,135 290 - -
Retained earnings 444,886 334,452 427,337 345,587 432,676 360,961 422,810 418,537
Total equity 665,517 554,070 647,948 565,187 653,411 580,851 642,410 638,137
Liabilities
Non-current liabilites
Deferred tax liabilities 63,047 53,737 58,439 53,736 53,869 54,441 48,417 59,691
Retirement benefit obligations 41,854 34,840 43,281 35,959 44,635 37,209 46,780 40,079
104,901 88,577 101,720 89,695 98,504 91,650 95,197 99,770
Current liabilities
Trade and other payables 158,762 211,310 261,816 175,378 172,549 153,098 158,231 173,082
Short term borrowings 257,423 194,182 227,130 223,573 160,230 263,754 282,740 284,262
Income tax Payables - - 142 - 79,273 - - -
416,185 405,492 489,088 398,951 412,052 416,852 440,971 457,344
Total liabilities 521,086 494,069 590,808 488,646 510,556 508,502 536,168 557,114

Total equity and liabilities 1,186,603 1,048,139 1,238,756 1,053,833 1,163,967 1,089,353 1,178,578 1,195,251

190
Ten - year
Economic Summary
Economic Indicators 2020 2018 2017 2016 2015 2014 2013 2012 2011 2010
GDP Indicators:
GDP growth Percent 2.3 3.2 3.1 4.4 4.0 4.9 3.4 9.1 8.4 8.0
GDP (current prices) Rs. billion 15,016 14,450 13,289 11,839.0 11,183.0 10,448.0 9,592.0 8,732.0 7,219.0 6,413.0
GDP (current prices) USD billion 84.0 88.9 87.2 81.3 80.5 79.3 74.3 68.4 65.3 56.7
GDP per capita (USD) Growth Percent - - -3.1 (0.21) 0.58 5.9 7.7 7.2 13.9 33.6
GDP per capita (market prices) Rs ‘’000’’ 688.0 667.0 603.0 558.4 533.0 503.0 466.0 427.0 346.0 310.0
GDP per capita (market prices) USD 3,852.0 4,102.0 3,956.0 3,835.0 3,843.0 3,821.0 3,609.0 3,351.0 3,125.0 2,744.0
Fiscal policy Indicators :

Budget deficit Per cent of GDP -6.8 -5.3 -5.5 -5.4 -7.4 -5.7 -5.9 -6.5 -6.9 -8.0
Monetary policy Indicators :

12 month T-Bill yield (year - end) Percent 8.45 10.4 8.9 10.2 7.3 6.0 8.3 11.7 9.3 7.6
Prime lending rate (year - end) Percent 9.74 12.21 11.6 11.5 7.4 6.4 10.1 14.4 10.8 9.3
M2b money supply growth Percent 7.0 17.6 16.7 18.4 15.2 13.3 16.7 17.6 19.1 15.8
Other Economic Indicators:

Inflation annual average (CCPI 2006/07 = 100)
Percent 4.3 4.3 7.3 4.0 4.8 3.3 6.9 7.6 6.7 6.2
Unemployment rate Percent 4.8 4.1 4.2 4.4 4.6 4.3 4.4 4.0 4.2 4.9
All share index (year - end) Points 6,129.2 5,643.0 6,369.3 6,228.3 6,894.5 7,299.0 5,913.0 5,643.0 6,074.0 6,636.0
Population Million 21.8 21.6 21.4 21.2 21.0 20.8 20.5 20.3 20.9 20.7
External Sector Indicators:

Export USD Billion 11.9 11.8 10.5 10.3 10.5 11.1 10.4 9.8 10.6 8.6
Import USD Billion 19.9 22.2 20.3 19.4 18.9 19.4 18.0 19.2 20.3 13.5
Balance of payments Percent of GDP -2.7 -1.1 2.4 2.4 2.3 4.3 1.5 0.3 -1.9 1.9
Current account balance USD billion -1.8 -2.8 -2.3 -1.9 2.0 2.0 -2.5 -4.0 -4.6 -1.1
Current account % of GDP Per cent -2.2 -3.2 -2.6 -2.4 2.4 2.5 -3.8 -6.7 -7.8 -2.2
Foreign Currency Indicator :

Exchange rate (annual average) Rs/USD 178.78 162.54 152.46 145.6 135.9 130.5 129.1 127.6 110.6 113.1
RS/Euro 200.14 197.80 171.73 161.2 150.8 173.5 171.5 164.0 153.9 150.1
Rs/Yen 1.64 1.59 1.35 1.3 1.1 1.2 1.3 1.6 1.4 1.3
Rs/INR 2.53 2.55 2.34 2.2 2.1 2.1 2.2 2.4 2.4 2.5
Exchange rate change USD (annual average) Percent 9.9 6.6 4.7 7.1 4.2 1.1 1.2 15.4 -2.2 -1.6
Rubber Sector Information:

Production Kg mn 74.8 102 83.1 79.1 88.6 98.6 130.4 152.0 158.2 152.9
Total extent Hectares ‘000’ 138.0 150.5 137 136.0 135.0 134.0 134.0 131.0 129.0 126.0
Yield Kg/hectares 950.0 1,042 809 851.0 950.0 889.0 1,247.0 1,459.0 1,566.0 1,561.0
Average price :
Colombo Auction Rs/Kg 288.51 286.58 336.72 239.3 248.2 286.1 376.9 416.6 508.8 403.0
Export (FOB) Rs/kg 332.29 374.95 343.56 294.3 342.0 362.8 389.8 420.7 535.4 377.5

191
Ten - year
Financial summary
Year ended 31st March 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11
Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000
Income Statement :
Turnover 1,590,203 1,569,345 1,249,498 1,178,339 1,041,756 952,561 973,858 961,489 716,102 588,207
Profit before taxation 12,086 43,635 65,972 59,299 42,675 62,969 51,077 19,123 (55,980) (7,608)
Taxation 225 (18,627) (23,074) (4,152) (7,853) (8,491) 4,438 696 (229) (663)
Profit after taxation 12,311 25,007 42,899 55,146 34,822 54,478 55,515 19,820 (56,209) (8,271)
Total comprehensive income 12,738 24,189 43,732 51,043 35,362 56,107 55,515 18557 (56,209) (8,271)

Balance Sheet :
Capital and reserves
Stated capital 109,600 109,600 109,600 109,600 109,600 105,752 105,752 105,752 105,752 105,752
Capital reserves 110,000 110,000 110,000 110,000 110,000 110,000 110,000 10,000 10,000 10,000
Revenue reserves 422,809 418,537 332,781 297,515 254,937 231,119 185,152 137,332 223,893 280,102
Shareholders funds 642,409 638,137 552,381 517,115 474,537 446,871 400,904 353,084 339,645 395,854
Non current liabilities
Interest bearing borrowings - - - - - - - - - 868
Deferred tax 48,416 59,691 33,092 14,948 17,229 11,149 8,831 11,408 11,388 11,703
Retirement benefit obligation 46,779 40,078 29,701 27,195 19,570 15,130 14,528 9,906 7,775 6,306
Total Equity & Non Current Liabilities 737,604 737,907 615,175 559,258 511,336 473,150 424,263 374,398 358,808 414,731
Assets Employed
Current assets 713,640 721,311 610,232 612,043 539,103 424,020 402,853 388,248 388,205 476,617
Current liabilities (440,970) (457,344) (412,118) (419,505) (384,890) (180,975) (168,845) (208,197) (222,481) (232,670)
Working capital 272,670 263,967 198,114 192,538 154,213 243,045 234,008 180,051 165,724 243,947
Property, plant & equipment 428,453 440,271 370,369 313,554 312,654 179,751 190,255 194,347 193,084 170,784
Investment 36,481 33,669 46,691 53,166 44,468 50,354 - - - -
Total Assets less Current Liabilities 737,604 737,907 615,175 559,258 511,336 473,150 424,263 374,398 358,808 414,731
Financial Ratios :
Earnings per share (rs.) 2.91 5.91 10.13 13.03 8.69 14.16 14.43 5.15 (14.61) (2.15)
Net profit (%) 1 3 3.43 4.67 3 6 6 2.10 (7.85) (1.41)
Dividends (rs. ‘000) 4,233 8,465 8,466 8,466 8,466 7,696 7,696 - - -
Dividends per share (rs.) 1.00 2.00 2.00 2.00 2.00 2.00 2.00 - - -
Bonus shares issue (rs.) - - - - 3,848 - - - - -
Others
Market price per share (rs.) 72.10 97.90 98.90 105.00 104.00 88.20 82.20 90.00 100.00 86.75
Price earnings ratio (times) 24.78 16.57 10 8 12 6 6 17 (7) (40)
Net assets per share ( rs.) 151.77 150.76 130.50 122.17 112.10 116.13 104.18 91.75 88.27 102.87
Annual sales growth (%) 1 41 6 9 9 (2) 1 34 22 (5)
Quick assets ratio (times) 1.01 1.14 0.99 1.03 0.96 1.60 1.53 1.26 1.11 1.69
Fixed asset turnover ratio (times) 3.85 3.70 3.50 3.90 3.49 5.53 5.31 4.95 3.71 3.44

192
Foreign
Currency Financial Statements
In Euro (Major Export Currency) In USD (Major Import Currency)
FOR THE YEAR ENDED 31ST MARCH 2020 2019 2020 2019

Revenue 7,593,366 8,037,618 8,373,454 9,301,475
Cost of sales (6,208,916) (6,462,461) (6,846,776) (7,478,637)
Gross Profit 1,384,449 1,575,156 1,526,678 1,822,838
Other income 18,353 31,411 20,239 36,350

Distribution cost (327,790) (335,504) (361,465) (388,259)
Administrative expenses (912,007) (904,701) (1,005,700) (1,046,959)
Operating Profit 163,005 366,362 179,751 423,970
Finance income 34,095 33,730 37,597 39,034

Finance cost (139,388) (176,612) (153,707) (204,383)
Net Finance Income (105,293) (142,882) (116,110) (165,349)
Profit before taxation 57,712 223,480 63,641 258,621

Income tax expense 1,074 (95,403) 1,184 (110,404)
Profit for the year 58,786 128,078 64,825 148,217
In Euro (Major Export Currency) In USD (Major Import Currency)

AS AT 31.03.2020 31.03.2019 31.03.2020 31.03.2019

ASSETS
Non Current Assets
Property, plant and equipment 1,971,032 2,142,183 2,188,387 2,405,745
Intangible assets 21,263 26,920 23,608 30,232
Financial assets at fair value through profit and loss 95,881 94,556 106,454 106,190
Financial assets at amortized cost 78,320 75,662 86,957 84,971
Deferred tax assets 53,610 56,734 59,522 63,714
2,220,107 2,396,056 2,464,928 2,690,852
Current Assets
Inventories 1,286,840 1,002,716 1,428,746 1,126,084
Trade and other receivables 1,699,125 2,385,311 1,886,495 2,678,785
Tax recoverable 21,375 36,640 23,732 41,148
Cash and cash equivalents 400,358 222,002 444,507 249,316
3,407,698 3,646,670 3,783,481 4,095,334
Total Assets 5,627,805 6,042,725 6,248,409 6,786,186

EQUITY AND LIABILITIES
Stated capital 523,351 554,096 581,064 622,269
General reserve 525,260 556,117 583,183 624,539
Available for sale reserve - - -
Retained earnings 2,018,953 2,115,961 2,241,593 2,376,296
Total Equity 3,067,565 3,226,174 3,405,839 3,623,104

Non- Current Liabilities
Deferred tax liability 231,191 301,776 256,686 338,904
Retirement benefit obligation 223,375 202,620 248,008 227,549
454,567 504,396 504,694 566,454
Current Liabilities
Trade and other payables 755,567 875,036 838,887 982,695
Short term borrowings 1,350,106 1,437,119 1,498,988 1,613,934
Income tax payable - - - -
2,105,673 2,312,155 2,337,876 2,596,629
Total Liabilities 2,560,240 2,816,551 2,842,570 3,163,083
Total Equity And Liabilities 5,627,805 6,042,725 6,248,409 6,786,186

Note: This information does not constitute a full set of financial statements in compliance with SLFRS/LKAS. This has been presented for the information
purpose only. Exchange rates prevailed at the end of each financial year have been used to convert the statement of financial position and average exchange
rates prevailed during the financial year have been used to convert the income statement. Restated figures were taken for the previous year.
193
Global
Reporting Initiative (GRI) G4
G RI is an international independent organization that seen in Sri Lanka is the Global Reporting Initiative (GRI) G4
helps businesses, government and other organizations Sustainability Reporting Guidelines.
understand and communicate the impact of business on
critical sustainability issues such as climate change, human Integrated Reporting endeavors to incorporate key aspects
rights, corruption and many others. GRI provides the world’s of sustainability, along with financial and other dimensions
most widely used standards on sustainability reporting and relevant to value creation in an organization in short, medium
disclosure, enabling businesses, governments, civil society and and long term.
citizens to make better decisions based on information that
matters. In fact, 92% of the world’s largest 250 corporations Hence this section of the guide provides in summary the GRI
report on their sustainability performance. disclosures and indicators under general and specific categories
as a reference to the prepares of integrated reports. The
Sustainability reporting is being practiced by many corporates categories are shown in the table here.
using various frameworks among which the most commonly
Category Sub Category GRI Index Index No.
General Standard Disclosures
Strategy and Analysis G4-1
Organisational Profile G4-3 to G4-16
Identified Material Aspects and Boundaries G4-17 to G4-23
Stakeholder Engagement G4-24 to G4-27
Report Profile G4-28 to G4-33
Governance G4-34
Ethics and Integrity G4-56

Specific Standard Disclosures
Economic G4-EC1 to G4-EC8
Environmental G4-EN1 to G4-EN29
Social Labour Practices and Decent Work G4-LA1 to G4-LA9
Human Rights G4-HR1 to G4-HR5
Society G4-SO3 to G4-SO8

Product Responsibility G4-PR3 to G4-PR9

194
Global Reporting Initiative (GRI) G4 (Contd...)
engagement provides limited assurance as well as reasonable
assurance. A limited assurance engagement is substantially less
in scope than a reasonable assurance engagement conducted
in accordance with SLSAE-3000 and consequently does not
enable to obtain assurance that we would become aware of
all significant matters that might be identified in a reasonable
assurance engagement. Accordingly, we do not express an
opinion providing reasonable assurance.

Management of the Company’s responsibility
for the Report
Independent Assurance Report The management of the company is responsible for the
preparation of the self-declaration, the information and
statements contained within the Report, and for maintaining
To the Board of Directors of Samson adequate records and internal controls that are designed to
International PLC on the Integrated support the sustaining reporting process in line with the GRI
Sustainability Reporting Guidelines.
Report- 2019/20

Auditor’s responsibility
Introduction and scope of the engagement
Our responsibility is to express a conclusion as to whether
The management of (“the Company”) engaged us to provide
we have become aware of any matter that causes us to
an independent assurance on the following elements of the
believe that the Report is not prepared in accordance with
Integrated Report-2019/20 (“the Report”)
the requirements of the Global Reporting Initiative G4 ‘In

accordance’ - Core guidelines. This report is made solely to the
1 Reasonable assurance on the information on financial
Company in accordance with our engagement letter dated 31st
performance as specified on statement of Value Addition
March 2020.
of the Report.
We disclaim any assumption of responsibility for any reliance

2 Limited assurance on other information presented in the
on this report to any person other than the company or
Report, prepared in accordance with the requirements of
for any purpose other than that for which it was prepared.
the Global Reporting Initiative G4 ‘In accordance’ - Core
In conducting our engagement, we have complied with
guidelines.
the independence requirements of the Code for Ethics for

Professional Accountants issued by the CASL.
Basis of our work and level of assurance
We performed our procedures to provide limited assurance in
Key assurance procedures we planned and performed our
accordance with Sri Lanka Standard on Assurance Engagements
procedures to obtain the information and explanations
(SLSAE 3000): ‘Assurance Engagements Other than Audits
considered necessary to provide sufficient evidence to support
or Reviews of Historical Financial Information’, issued by the
our limited assurance conclusions. Key assurance procedures
Institute of Chartered Accountants of Sri Lanka (“CASL”).
included:

The evaluation criteria used for this limited assurance
01. Interviewing the Company’s relevant personnel to
engagement are based on the Sustainability Reporting
understand the process for collection, analysis, aggregation
Guidelines (“GRI Guidelines”) and related information in
and presentation
particular, the requirements to achieve GRI G4 ‘In accordance’

02. Reviewing and validation of the information contained in
Comprehensive guideline publication, publicly available at
the Report
GRI’s global website at “www.globalreporting.org”. Our


195
3. Checking the calculations performed by the Company on a 01 The information on financial performance as specified on
sample basis through recalculation statement of Value Addition of the Report are properly
derived from the audited financial statements of the
4. Reconciling and agreeing the data on financial Company for the years ended 31st March 2019 and 31st
performance are properly derived from the company’s March 2020.
audited financial statements for the year ended 31st
March 2020 and Comparison of the content of the Report 02 Nothing has come to our attention that causes us to
against the criteria for a Global Reporting Initiative G4 ‘In believe that other information presented in the Report are
accordance’ - Core guidelines. not fairly presented, in all material respects, in accordance
with the Company’s sustainability practices and policies
Our procedures did not include testing electronic systems used some of which are derived from GRI-G4-‘In accordance’
to collect and aggregate the information. Core Sustainability Reporting Guidelines.

Limitations and considerations Yours faithfully,
Environmental and social performance data are subject to
inherent limitations given their nature and the methods used
for determining, calculating and estimating such data.
Edirisinghe & Co.
Conclusion Chartered Accountants
Based on the procedures performed, as described above, we Colombo
conclude that: 14th August 2020


196
Samson international Plc voluntarily adopted Global Reporting Initiative (GRI) G4 ‘In accordance’ core Guidelines during the
financial year 2015/16 as a measure of improving the standard of accountability and reporting on accountability, These details are
given below.
General Standard Disclosures
GRI Index Description Reported Section Page No.

No.
Strategy and Analysis
G4-1 Statement from the Chairman Chairman’s Review 24
Organization profile
G4-3 Name of the organization. Samson International Plc / Corporate Information 07
G4-4 Primary brands, products, and/or services. Our Products 16
G4-5 Location of organization’s headquarters. Corporate Information 07
G4-6 Number of countries where the organization Our Products 16

operates, and names of countries with either Our Global Presence 93
major operations or that are specifically
relevant to the sustainability issues
covered in the report.
G4-7 Nature of ownership and legal form. Corporate Information and Investor Information 07 ,203
G4-8 Markets served (including geographic Our Products 16

breakdown, sectors served, and types of Our Global Presence and Our Products 93
customers/beneficiaries).
G4-9 Scale of the reporting organization. Corporate Information and Investor Information 07,203
G4-10 Total work force by employment type, Human Capital 77

employment contract, and region, broken
down by gender.
G4-11 Percentage of employees covered by collective Human Capital - Recognition of Joint consultative 83
bargaining committee
G4-12 Organizations supply chain Social Relationship Capital 92
G4-13 Significant changes during the reporting period Investor Information 203
regarding size structure and ownership
G4-14 Addressing the Precautionary principles/approach Risk Management, Social Relationship Capital 128
G4-15 List of Charters, principles or other initiatives Review of operating enviroment 53
G4-16 List of Memberships of association Social Relationship Capital 92


197
No.
Identified Material Aspects and Boundaries
G4-17 Operational structure of the organization. Profiles of the Executive Management 35
G4-18 Process for defining report content. About this report 02

G4-19 Material aspect identified for report content. Report of the Board of Directors 145
Financial and Operational Highlights 05
G4-20 Aspect boundary for identified material Managing Director’s Operational Review 27
aspects within the organization.
G4-21 Aspect boundary for identified material Chairman’s Review, Goals and Stretegies 24,60
aspects outside the organization.
G4-22 Restatements of information provided in the 156

previous reports.
G4-23 Significant changes from previous reporting Notes to the Financial Statements 158-187
periods in the scope and aspect boundaries.
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the Value creations & stakeholder engagement 56
organization.
G4-25 Basis for identification and selection of Value creations & stakeholder engagement 56
stakeholders with whom to engage.
G4-26 Approaches to stakeholder engagement, Value creations & stakeholder engagement 56

including frequency of engagement by type
and by stakeholder group.
G4-27 Key topics and concerns that have been Value creations & stakeholder engagement 56
raised through stakeholder engagement.
Report Profile
G4-28 Reporting period Year ended 31 March 2020
G4-29 Date of most recent previous report Quarterly Financials - Quarter ended 31st March 2020
G4-30 Reporting cycle Quarterly and Annually
G4-31 Contact point for questions regarding the Corperate Information 07

report or its contents.
G4-32 Compliance with GRI G4 Guidelines, GRI GRI G4 Audit Report 194
Content Index and External Assurance Report.
G4-33 Policy and current practice with regard to Audit Report and Audit Committee Report 151,139
seeking external assurance for the report. GRI G4 Audit Report 194

198
No.
Governance
G4-34 Governance structure of the organization, Corporate Governance 105
including committees under the highest Report of the Board of Directors 145
governance body responsible for
decision-making on economic, environment
and social impacts

Ethics and integrity
G4-56 The values, principles , standards and norms About us & Corporate milestones 04,07
of behaviour
Specific Standard Disclosures

Category: Economic
Aspect Economic Performance
G4-EC1 Direct economic value generated, distributed Value creations & stakeholder engagement 56
and retained. Statement of Value Added and distrubuted
G4-EC2 Financial implications and other risks and Notes to the Financial Statements - Note 05 167
opportunities for the organization’s activities
due to climate change.
G4-EC3 Coverage of the organization’s defined Notes to the Financial Statements - Note 3.6 and 22 164-181
benefit plan obligations.
G4-EC4 Financial assistance received from Government Managing Director’s Operational review 27

Aspect Indirect Economic Impacts
G4-EC8 Significant indirect economic impacts, Review of external environment 43

including the extent of impacts.
Category: Environment
Aspect Materials
G4-EN1 Materials by weight or volume Financial and Operational Highlights 05
G4-EN2 Percentage of materials used that are Financial and Operational Highlights 05
recycled input Materials
Aspect Energy
G4-EN3 Energy consumption within the organization Review of Operating environment 53
G4-EN4 Energy consumption outside the organization
G4-EN5 Energy intensity Review of Operating environment 53
G4-EN6 Reductions in energy consumption Review of Operating environment 53
G4-EN7 Energy reductions in products and services Review of Operating environment 53

199
No.
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope1) Natural Capital 99
G4-EN16 Energy indirect greenhouse gas (GHG) Natural Capital 99

emissions (Scope 2)
G4-EN17 Other indirect greenhouse gas (GHG) Natural Capital 99

emissions (Scope 3)
G4-EN18 Greenhouse gas (GHG) emissions intensity Natural Capital 99
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and Financial and Operational Highlight and Manufacutured 05,71
disposal method Capital
G4-EN29 Compliance Review of operating envirment 53

Monetary value of significant fines and total
number of non-monetary sanctions for
non-compliance with environmental
laws and regulations.
Category: Social
l Labor Practices and Decent Work
Aspect Employment
G4-LA1 Total number and rate of new employee hires Human Capital 77
and employee turnover by age group gender
and region.
G4-LA2 Benefits provided to full-time employees that Human Capital 80

are not provided to temporary or part-time
employees, by significant location of operation.
Aspect Labour/Management Relations
G4-LA4 Minimum notice periods regarding operational Human Capital 83

changes, including whether these are specified
in collective agreements.
Aspect Occupational Health and Safety
G4-LA5 Percentage of total workforce represented in Human Capital 83

formal joint management-worker health and
safety committees that help monitor and
advice on occupational health and safety
programmes.
G4-LA6 Type of injury and rates of injury, occupational Human Capital 77
disease, lost days and absenteeism, and total

number of work-related fatalities, by region
and by gender.
200
No.
Aspect Training and Education
G4-LA9 Average hours of training per year per employee Human Capital 86
by gender, and by employee category.
l Human Rights
Aspect Investment
G4-HR1 Total number and percentage of significant Human Capital 77

investment agreements and contracts that
include human rights clauses or that
underwent human rights screening.
Aspect Child Labour
G4-HR5 Operations and suppliers identified as having Human Capital 77

significant risk for incidents of child labour and
measures taken to contribute to the effective
abolition of child labour.
l Society
Aspect Anti-Corruption Risk Management
G4-SO3 Total number and percentage of operations Risk Management 128

assessed for risks related to corruption and
the significant risks identified.
Aspect Compliance
G4-SO8 Monetary value of significant fines and total Review of operating envirment 53
number of non-monetary sanctions for
non-compliance with laws and regulations.
l Product Responsibility
Aspect Product and Service Labelling
G4-PR3 Type of product and service information Our Products 16

required by the organization’s procedures
for product and service information and
labeling, and percentage of significant product
and service categories subject to such
information requirements.
Aspect Marketing Communications
G4-PR7 Total number of incidents of non-compliance Review of operating envirment 53

with regulations and voluntary codes
concerning marketing communications,
including advertising, promotion, and
sponsorship by type of outcomes.
Aspect Compliance
G4-PR9 Monetary value of significant fines for Review of operating envirment 53

non-compliance with laws and regulations
concerning the provision and use of
products and services.
201
Glossary
of Financial Terms
1. Segment : Constituent business units grouped in terms of the nature and similarity of operations.
2. Annual Sales Growth : Percentage change over previous year’s gross turnover.
3. Current Ratio : Current assets divided by current liabilities.
4. Dividend Cover : Profit available for appropriation divided by gross dividend.
5. Dividend per Share : Total Gross Dividend divided by no. of shares at the end of the year.
6. Gross Dividend : Portion of Profits, inclusive of tax withheld, distributed to shareholders.
7. Dividend Rate : Gross Dividends declared per share.
8. Earnings per Share : Profit attributable to shareholders divided by the no. of shares issued.
9. Interest Cover : Profit from ordinary activities before tax and finance cost divided by finance cost.
10. Net Assets per Share : Net Assets divided by the no. of shares.
11. Price Earnings Ratio : Market Price per share divided by earnings per share.
12. Deferred Taxation : Sum set aside for tax in the financial statement that will become payable in a financial year
other than the current financial year.
13. Value Additions : The quantum of wealth generated by the activities of the Company.
14. Revenue Reserves : Reserve considered as being available for distributions and investments.
15. Capital Reserves : Reserves identified for specific purposes and considered not available for distribution.
16. Return on Capital Employed : Profit after interest and tax divided by capital employed or shareholders funds.
17. Shareholders Fund : Total of stated capital and revenue reserves.
18. Capital employed : Shareholders’ funds plus long - term bearing loans and borrowings.
19. Average Capital Employed : Mean of two consecutive years’ capital employed.
20. Corporate Governance : A system by which Companies are directed and controlled by the management in the
best interest of the stakeholders ensuring greater transparency through better and timely
financial reporting.
21. Market Capitalization : Number of ordinary shares in issue multiplied by the Market Value per share at the balance
sheet date.
22. Related Parties : Parties who could control or significantly influence the financial and operating policies of
the business.
23. Intangible Assets : An intangible asset is an identifiable non-monetary asset without physical substance.
24. Impairment : This occurs when the recoverable amount of an asset is less than its carrying amount.
25. Fair value : This is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties at arm’s length transaction.

202
Investor
Information
“While valuing the patronage of all our of shares they hold. Therefore, the active
shareholders, the Company has made every participation of shareholders at the Annual
endeavours to ensure equitable treatment to General Meeting is encouraged”.
all our shareholders irrespective of the number
Last Annual General Meeting
The Board seeks Annual General meeting to communicate with investors and all shareholders are encouraged to participate. The
chairman of audit and remuneration committee will be available at the Annual General meeting to answer any questions raised by
the shareholders.
General
a) Stated capital - Rs. 109,600,211
b) No. of Shares - 4,232,771 (as at 31st March 2019 - 4,232,771)
c) Class of Shares - Ordinary Shares
d) Date of Listing - The Company was listed on 24th July 1992 with the Colombo Stock Exchange.
e) Ticker symbol - SIL.N0000 (in the Colombo Stock Exchange)
f) Market sector - Manufacturing

203
Investor Information (Contd...)
Submission of audited accounts to CSE
The audited income statement for the year ended 31st March 2020 and the audited balance sheet of the Company as at that date
have been submitted to the Colombo Stock Exchange within the stipulated date.
Market Capitalization
The market capitalization of the Company which is the number of ordinary shares issued multiplied by the market value of a share
(at the year-end), was Rs .305.2 Mn at 31st March 2020 (Rs. 414.4 Mn as at 31st March 2019). Further, Float adjusted market
capitalization is Rs. 131.8 Mn as at 31st March 2020. The Float adjusted market capitalization of the Company falls under Option
5 of Rule 7.13.1 (a) of the Listing Rules of the Colombo Stock Exchange and the Company has complied with the minimum public
holding requirement applicable under the said option.
As at 31.03.2020 31.03.2019
Public Shareholding (%) 43.208% 43.207%
Public Shareholders as at 31.03.2020 1,234 1,220
Float adjusted market capitalization Rs. 131,858,859.30 179,044,744.53
Market Value of the Company’s Ordinary Shares
Market Value per 2019/20 Date 2018/19 Date Decreased

share Rs Rs by
Highest Price 99.00 25.07.2019 118.70 10.08.2018 19.70
Lowest Price 72.10 13.03.2020 74.00 11.05.2018 1.90
Closing 72.10 31.03.2020 97.90 31.03.2019 25.80
Share Information 2019/20 Quarterly information For the year
Q1 Q2 Q3 Q4 2019/20 2018/19
High (Rs.) 96.40 99.00 90.00 90.00 99.00 118.70
Low (Rs.) 79.00 80.00 80.00 72.10 72.10 74.00
Closing (Rs.) 84.00 84.00 81.30 72.10 72.10 97.90
Market capitalization (Rs in Mn) 355.5 355.5 344.1 305.2 305.2 414.40
Market Price per Share (Rs.) as at 31st March
120.00
104.00 105.00
100.00 98.90 97.90
100.00 90.00 88.20 88.10
82.20
80.00 72.10
Rs.
60.00
40.00
20.00
-
2010/11 2010/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Year

204
Analysis of Shareholders based on number of shares held as at 31st March 2020
As at 31st March 2020

No of Shares held No of % of Total % of total
Shareholders Shareholders holding holding
1-1,000 1,142 91.4 129,353 3.2
1,001 – 10,000 89 7.1 243,094 5.7
10,001-100,000 12 1.0 279,822 6.6
100,001 – 1,000,000 4 0.3 1,241,623 29.3
1,000.000 & Over 2 0.2 2,338,879 55.2
Total 1,249 100 4,232,771 100
DSI Group has invested more than 57% of the stake of the Company as at 31st March 2020.
No of Shares held No of % of Total % of total
Shareholders Shareholders holding holding
1-1,000 1,128 91.3 130,494 3.1
1,001 – 10,000 89 7.2 246,496 5.8
10,001-100,000 13 1.0 278,432 6.6
100,001 – 1,000,000 4 0.3 1,241,623 29.3
1,000.000 & Over 2 0.2 2,335,726 55.2
Total 1,235 100 4,232,771 100
Analysis of Shareholders category-wise as at 31st March 2020

Category No of % of Total % of
Shareholders Shareholders holding total holding
Individual- Local 1,192 95.4 440,336 10.4
Institutional-local 50 4.0 3,677,326 86.9
Individual – foreign 7 0.6 115,109 2.7
Institutional- foreign - - - -
Total 1,249 100 4,232,771 100
It is noted that 95.4% of the number of shareholders are Sri Lankan individuals which represent 10.4% of the stake of the
Company as at 31st March 2020. The Company maintains more than 20% of the total listed ordinary shares on more than
750 public shareholders as required by the rule 7.6 (iv) of the CSE Listing rules.

Category No of % of Total % of
Shareholders Shareholders holding total holding
Individual- Local 1,179 95.4 440,724 10.4
Institutional-local 49 4.0 3,679,938 86.9
Individual – foreign 7 0.6 115,109 2.7
Institutional- foreign - - - -
Total 1,235 100 4,232,771 100

205
Twenty Major Shareholders as at 31st March 2020
No Shareholder No of No of No of Shares
Shares as at Shares as at Increased % Inc.
31.03.2020 % 31.03.2019 % by by
1 D.S.I Samson Group (Pvt) Ltd. 1,325,306 31.311 1,325,306 31.311 - -
2 Seylan Bank Plc / Senthilverl Holdings (Pvt) Ltd. 1,013,573 23.946 - - 1,013,573 100%
3 D. Samson Industries Limited 603,633 14.261 603,633 14.261 - -
4 D. Samson & Sons Limited 301,782 7.130 301,782 7.130 - -
5 Sampath Bank PLC / Dr T. Senthilverl 230,000 5.434 230,000 5.434 - -
6 Samson Rubber Industries (Private) Ltd 106,208 2.509 106,208 2.509 - -
7 Mr Sanger GMBH 86,484 2.043 86,484 2.043 - -
8 Mr A H Munasinghe 33,117 0.782 33,117 0.782 - -
9 Mr K G Piyasena 25,278 0.597 25,278 0.597 - -
10 Samson Manufacturers Limited 24,369 0.576 24,369 0.576 - -
11 Mr H Tanigawa 22,506 0.532 22,506 0.532 - -
12 Asha Financial Services Limited / Mr C N Pakianathan 20,322 0.480 20,322 0.480 - -
13 Mr U I Suriyabandara 11,950 0.282 10,709 0.253 1,241 12%
14 Mrs D R Wimalasena 11,741 0.277 11,741 0.277 - -
15 Miss D D G Rajapaksa 11,522 0.272 11,373 0.269 149 1%
16 Mr D R Rajapaksa 11,350 0.268 11,350 0.268 - -
17 Mr D K Rajapaksa 10,959 0.259 10,959 0.259 - -
18 Mr D M Rajapaksa and Dr D B D Rajapaksa 10,224 0.242 10,224 0.242 - -
19 Mr T S Salim 8,740 0.206 8,740 0.206 - -
20 Miss N.E.Rajapaksa 8,412 0.199 8,412 0.199 - -
Total of 20 Major Shareholders 3,877,476 91.606 2,862,513 67.627 1,014,963 35%
Other 1,229 Shareholders as at 31/03/2020 355,295 8.394 1,370,258 32.373 (1,014,963) -74%
Other 1,215 Shareholders as at 31/03/2019
Total Shareholdings of the Company 4,232,771 100.000 4,232,771 100.000 - -
Public Holdings
As at 31st March 2020, the public held 43.207% (in 2018/19 – 43.208%) of the shares of the Company. The number of public
shareholders in the year 2019/20 and 2018/19 is 1,234 and 1,220 respectively.
The shares of Seylan Bank PLC/ Dr Thirugnanasambander Senthilvel has been treated under public and a declaration to Colombo
Stock Exchange was done. The shares owned by Seylan Bank PLC / Dr T. Senthilverl in previous year have been transferred to Seylan
Bank Plc / Senthilverl Holdings (Pvt) Ltd during the current year.
No of Share transactions
2019/20 2018/19
No of Transactions 324 222
No of Shares Traded 1,029,166 6,240
The Value of shares traded during the year under review was Rs.78,450,850.08 in 2019/20 as against Rs. 555,884.60 in 2018/19.
206
Number of Days taken for the AGM from the Balance Sheet date
Financial Year Date of AGM held Number of Days taken for
the AGM from the balance sheet date
2011/12 14-Sep-12 166
2012/13 13-Sep-13 165
2013/14 19-Sep-14 171
2014/15 14-Sep-15 166
2015/16 29-Jul-16 119
2016/17 30-Jun-17 90
2017/18 29-June-18 89
2018/19 28-June-19 88
2019/20 30-Sep- 20 183
Number of Days taken for the AGM

from the balance sheet date
2019/20 183
88
2017/18
89
Financial Year
90
2015/16 119
166
2013/14
171
165
2011/12 166
0 20 40 60 80 100 120 140 160 180 200
Number of Days taken for the AGM
Last year AGM

The last AGM was held 28th June 2019 with the participation of 99 shareholders (8% of the total number of shareholders) at
Samson Rajapaksa Auditorium, Sri Lanka College of Obstetricians and Gynecologists, Colombo 8.
The following resolutions were approved at the last AGM.
1. Approved the Annual Report of the Board of Directors on the affairs of Company and the Financial Statements for the year ended
31st March 2019 and the Report of the Auditors thereon.
2. Dr. D S Rajapaksa who was 75 years of age was re-elected as a Director of the Company and it was declared as provided for in
Section 211 (1) of the Companies Act, No.7 of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act
shall not apply to Dr. D S Rajapaksa”.
3. Mr. D K Rajapaksa who was 74 years of age was re-elected as a Director of the Company and it was declared as provided for in
shall not apply to Mr. D K Rajapaksa”.
4. Mr. D R Rajapaksa who was 73 years of age was re-elected as a Director of the Company and it was declared as provided for in
shall not apply to Mr. D R Rajapaksa”.
5. Mr. T K Bandaranayake who was 76 years of age was re-elected as a Director of the Company and it was declared as provided for
in Section 211 (1) of the Companies Act, No.7 of 2007 that the age limit of 70 years referred to in Section 210 of the Companies
Act shall not apply to Mr. T K Bandaranayake”.
6. Mr. G H A Wimalasena who was 78 years of age was re-elected as a Director of the Company and it was declared as provided for in
shall not apply to Mr. G H A Wimalasena.”
7. Re-elected Mr. D C J Rajapaksa who retired by rotation in terms of Article 95 of the Article of Association, as a Director of the
Company.
8. Re-appointed Messrs Edirisinghe & Co. Chartered Accountants as Auditors of the Company for the ensuing year and to authorize
the Directors to determine their remuneration.
9. Authorized the Directors to determine donations for the year ending 31st March 2020 and up to the date of the next AGM.

207
NOTICE
of Meeting
NOTICE IS HEREBY GIVEN that the Twenty Eighth Annual General Meeting of Samson International PLC will be held on 30th September,
2020 at the Sri Lanka College of Obstetricians and Gynecologists, Samson Rajapaksa Auditorium at No. 112, Model Farm Road, Colombo 08
at 3.00 p.m. for the following purposes:
1. To receive and consider the Annual Report of the Board of Directors on the affairs of Company and the Financial Statements
the year ended 31st March 2020 and the Report of the Auditors thereon.
2. To appoint Dr. D.S Rajapakse who is 76 years of age, as a Director of the Company and to adopt the following resolution:-
“IT IS HEREBY RESOLVED THAT Dr. D.S Rajapakse who is 76 years of age be and is hereby appointed as a Director of the
Company and it is hereby declared as provided for in Section 211(1) of the Companies Act No.7 of 2007 that the age limit
of 70 years referred to in Section 210 of the Companies Act shall not apply to Dr. D.S Rajapakse”.
3. To appoint Mr. D K Rajapakse who is 75 years of age, as a Director of the Company and to adopt the following resolution:-
“IT IS HEREBY RESOLVED THAT Mr. D K Rajapakse who is 75 years of age be and is hereby appointed as a Director of the
of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr. D K Rajapakse”.
4. To appoint Mr. D R Rajapakse who is 74 years of age, as a Director of the Company and to adopt the following resolution:-
“IT IS HEREBY RESOLVED THAT Mr. D R Rajapakse who is 74 years of age be and is hereby appointed as a Director of the
of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr. D R Rajapakse”.
5. To appoint Mr. T K Bandaranayake who is 77 years of age, as a Director of the Company and to adopt the following
resolution:-
“IT IS HEREBY RESOLVED THAT Mr. T K Bandaranayake who is 77 years of age be and is hereby appointed as a Director of
the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act, No.7 of 2007 that the age
limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr. T K Bandaranayake”.
6. To re-elect Ms. I Malwatte who retires by rotation in terms of Article 95 of the Articles of Association, as a Director of the
Company
7. To re-appoint Messrs Edirisinghe & Co. Chartered Accountants as Auditors of the Company for the ensuing year and to
authorize the Directors to determine their remuneration.
8. To authorize the Directors to determine donations for the year ending 31st March 2021 and up to the date of the next
Annual General Meeting.
By Order of the Board

SAMSON INTERNATIONAL PLC
P W Corporate Secretarial (Pvt) Ltd

Secretaries
14th August 2020.

Colombo
Notes:- 1. A shareholder is entitled to appoint a Proxy to attend and vote at the meeting on his/her behalf.
2. A Proxy need not be a shareholder of the Company.
3. A Form of Proxy accompanies this Notice.
4. The completed Form of Proxy should be deposited at the Registered Office of the Company, No. 110, Kumaran Ratnam Road,
Colombo 02, not less than 48 hours before the time for holding the Meeting.

208
Directions
to the venue of the AGM

209
NOTES

210
Form
of Proxy
*I/We ……………………………………………………………………… of ………………………………………………………………………… being* a
shareholder/ shareholders of SAMSON INTERNATIONAL PLC, do hereby appoint ………………………………………………………………………… of
……………………………………………………or failing *him/her*
Dr. D S Rajapaksa of Colombo or failing him*
Mr. D K Rajapaksa of Colombo or failing him*
Mr. D R Rajapaksa of Colombo or failing him*
Mr. T K Bandaranayake of Colombo or failing him*
Mr. D G P S Abeygunawardana of Colombo or failing him*
Mr. D D A Rajapaksa of Colombo or failing him*
Mr. D C J Rajapaksa of Colombo or failing him*
Ms. I Malwatte of Colombo
as *my/our Proxy to represent me/us*, to speak and vote for *me/us on *my/our behalf at the Twenty Eighth ANNUAL GENERAL MEETING OF THE COMPANY
to be held on 30th September, 2020 at 3.00 p.m. and at any adjournment thereof, and at every poll which may be taken in consequence thereof.
FOR AGAINST
1. To appoint Dr. D.S Rajapakse who is 76 years of age, as a Director of the Company and to adopt the following
resolution:-
“IT IS HEREBY RESOLVED THAT Dr. D.S Rajapakse who is 76 years of age be and is hereby appointed as a
Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act No.7
of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Dr. D.S
Rajapakse”.
2. To appoint Mr. D K Rajapakse who is 75 years of age, as a Director of the Company and to adopt the following
resolution:-
“IT IS HEREBY RESOLVED THAT Mr. D K Rajapakse who is 75 years of age be and is hereby appointed as a
of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr. D K
Rajapakse”.
3. To appoint Mr. D R Rajapakse who is 74 years of age, as a Director of the Company and to adopt the following
resolution:-
“IT IS HEREBY RESOLVED THAT Mr. D R Rajapakse who is 74 years of age be and is hereby appointed as a
of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr. D R
Rajapakse”.
4. To appoint Mr. T K Bandaranayake who is 77 years of age, as a Director of the Company and to adopt the
following resolution:-
“IT IS HEREBY RESOLVED THAT Mr. T K Bandaranayake who is 77 years of age be and is hereby appointed as a
Director of the Company and it is hereby declared as provided for in Section 211(1) of the Companies Act,No.7
of 2007 that the age limit of 70 years referred to in Section 210 of the Companies Act shall not apply to Mr. T K
Bandaranayake”.
5. To re-elect Ms. I Malwatte who retires by rotation in terms of Article 95 of the Articles of Association, as a Director
of the Company.
6. To re-appoint Messrs Edirisinghe & Co. Chartered Accountants as Auditors of the Company for the ensuing year
and to authorize the Directors to determine their remuneration.
7. To authorize the Directors to determine donations for the year ending 31st March 2021 and up to the date of the
next Annual General Meeting.
Signed this…………… day of ……………………….. Two Thousand and Twenty.
*Signature/s
Note: 1) *Please delete the inappropriate words.

2) Instructions as to completion are noted on the reverse hereof.

INSTRUCTIONS AS TO COMPLETION
1. Kindly perfect the Form of Proxy after filling in legibly your full name and address and sign in the space provided.
Please fill in the date of signature.
2. A shareholder entitled to attend and vote at the Meeting is entitled to appoint a Proxy who need not be a shareholder,
to attend and vote instead of him. Please indicate with an “X” in the boxes provided how your Proxy is to vote on each
resolution. If no indication is given, the Proxy in his discretion will vote as he thinks fit.
3. In the case of a Corporate shareholder, the Form of Proxy must be completed under its Common Seal, which should be
affixed in the manner prescribed by the Articles of Association.
4. If the Form of proxy is signed by an Attorney, the relevant Power of Attorney should also accompany the completed
Form of Proxy, in the manner prescribed by the Articles of Association.
5. The completed Form of Proxy should be deposited at the Registered Office of the Company, No. 110, Kumaran Ratnam
Road, Colombo 02, not less than Forty Eight(48) hours before the appointed time for the Meeting.

SIL Flag
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214

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Samson international PLC Annual Report 2019/20

1. Every dark cloud has a silver lining 01 Capital Management Reports

Management Profile Financial Reports

Management Discussion and Analysis Supplementary Information

We also aspire to become a prominent socially responsible corporate citizen in the

Samson international PLC Annual Report 2019/20

Scope and Boundary

• Sri Lanka Accounting Standards,

• Integrated Reporting Framework issued by the IIRC,

• Global Reporting Initiative- G4 Standards,

• Companies Act No 7 of 2007,

• Listing Rules of the Colombo Stock Exchange,

Samson international PLC Annual Report 2019/20

Theme of Previous Annual Reports

2012/13- Silver Jubilee and beyond

2013/14 – Aimed at versatility

2014/15 - Let the figures do the walking

2015/ 16 – A wide product range sounds better

2016/17 – There is no end to our search for excellence

2017/18 – The road will never be the same

2018/19 - Bringing Excellence to the Surface

Samson international PLC Annual Report 2019/20

Samson international PLC Annual Report 2019/20

Rs. 1.6 Bn 26% Rs. 1.2 Bn 456 Rs. 34 Mn

Total Assets Market Capitalization

30% 23% 20% 4.0%

No. of Employees Nos 456 414

Social Total Taxes Rs. 000 (225) 18,627

Intellectual Investment in IT development Rs. 000 2,244 2,101

Samson international PLC Annual Report 2019/20

Company Registration number : PQ 192

Directors : Dr D. S. Rajapaksa (Chairman)

Audit Committee : Mr T. K. Bandaranayake (Chairman)

Remuneration Committee : Mr G. H. A. Wimalasena (Chairman)

Samson international PLC Annual Report 2019/20

Baddegama Factory : Gilcroft Estate, Kiribathwila, Ampegama, Baddegama.

Parent Company : DSI Samson Group (Pvt) Ltd.

Bankers : Hatton National Bank DFCC Bank

Year Investments Product Certifications Awards won

1992/93 Became a public quoted

1994/95 Received the first “ ISO 9001: 1994

1995/96 Produced Hot Water Bottles with the

2007/08 Invested in the first

2009/10 Purchased all assets of

2011/12 Received the Gold

Samson international PLC Annual Report 2019/20

Year Investments Product Certifications Awards won

2012/13 Received the Gold

2013/14 Received the Silver

2014/15 Purchased assets of Received the “ ISO 9001:2008

Issue of bonus shares on

2015/16 Produced products with FSC Received the Gold

2016/17 Received Code of Conduct in Business Received Gold

Samson international PLC Annual Report 2019/20

Year Investments Product Certifications Awards won

2017/18 Received ISO 9001: 2015, 14001:2015 Received the Gold

2018/19 Award from the

2019/20 Acquisition of an exclusive Received Gold

NCE – National Chamber of Exports

Samson international PLC Annual Report 2019/20