Statement of Directors’ Responsibilities for the Financial Statements

The Companies Act No. 07 of 2007 require the Directors to prepare and present Financial Statements for each financial year giving a true and fair view of the state of affairs of the Group and the Company as at the end of the financial year and the financial performance of the Company and the Group for the financial year.

The responsibilities of the Directors in relation to the Financial Statements of the Group and the Company are set out in following statement. As per the provision of the Companies Act No. 07 of 2007, the Directors are required to prepare for each financial year and place before general meeting of shareholders the Financial Statements, which comprise:

• Income Statement and a Statement of Comprehensive Income, which presents a true and fair view of the financial performance of the Company and its subsidiaries for the financial year; and
• Statement of Financial Position, which presents true and fair view of the financial position of the Company and its subsidiaries as at the end of the financial year and which complies with the requirements of the Companies Act No. 07 of 2007.

In addition, the Directors have to ensure that Financial Statements present fairly for each financial year the Group’s financial position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the ‘Framework for the preparation and presentation of Financial Statements’ set out in the Sri Lanka Accounting Standards. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable Sri Lanka Accounting Standards.

Directors also have to ensure that:

• Appropriate accounting policies have been used in a consistent manner;
• Where necessary, prudent judgment and estimates have been made;
• Requirements of the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 have been followed;
• Listing Rules of the Colombo Stock Exchange are complied with.

The Directors are responsible for ensuring that the companies within the Group keep sufficient accounting records to disclose with reasonable accuracy, the financial position of the Group and the Company, and to ensure that the Financial Statements presented comply with the requirements of the Companies Act No. 07 of 2007.

The Board of Directors accepts responsibility for the integrity and objectivity of the Financial Statements presented.

The Directors are required to provide the Auditors with every opportunity to take whatever steps necessary to enable them to form their audit opinion.

The responsibility of the Auditors in relation to the Financial Statements appears in the Report.

Messrs KPMG, Chartered Accountants, the Auditors of the Company has examined the Financial Statements and the related records and information. Their opinion on Financial Statements is given.

The Directors are also responsible for taking reasonable measures to safeguard the assets of the Group and in that context to have proper regard to the establishment of appropriate systems of internal control with a view to prevention and detection of fraud and other irregularities. The Directors, having reviewed the financial budget and cash flows for the year to 31st March 2013 and the bank facilities, consider that the Group has adequate resources to continue in operation, and have continued to adopt the going concern basis in preparing Financial Statements.

By Order of the Board,

B.C.S.A.P. Gooneratne
Director

Colombo
21st May 2013