Singer Annual Report 2018 2019 PDF

SINGER (SRI LANKA) PLC
SINGER (SRI LANKA) PLC ANNUAL REPORT 2018/19

THE
LEAD
SINGER
Over the ages, Singer’s enterprise has been
“music to the ears” of stakeholders across all strata
of society in Sri Lanka. The Company holds a unique,
pre-eminent position in the lives of Sri Lankans from every
walk of life and circumstance, touching lives with products
and services of value delivered from a stable platform
of long-term sustainability. Given the extremely strong
positioning of the Company today, we can claim the role of
“lead singer” in “the band” that is the current commercial
arena of the country.
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SINGER AT SINGER’S BUSINESS MANAGEMENT DISCUSSION
A GLANCE LEADERSHIP MODEL AND ANALYSIS
ANNUAL REPORT 2018/19
CONTENTS
4 5 13 25
About this report Singer at a Glance Singer’s Leadership Business Model
6 Vision/Mission/Values 14 Chairman’s Message 26 Operating Environment

and Objectives
16 CEO’s Review 31 Stakeholder Engagement
8 History
18 Board of Directors 33 Materiality
9 Awards and Accolades
22 Management Team
10 Highlights 2018/19
12 Review Period at a
Glance
101 161 271 3
STEWARDSHIP FINANCIAL SUPPLEMENTARY
REPORTS INFORMATION
Contents
www.singersl.com
35 101 161 271

Management Discussion Stewardship Financial Reports Supplementary
and Analysis Information
36 Financial Capital 102 Corporate Governance 162 Financial Calendar 272 Parent, Subsidiaries and
Related Companies
50 Institutional Capital 148 Audit Committee Report 163 Annual Report of the
Board of Directors 273 A Decade in perspective
63 Customer Capital 150 Remuneration
on the Affairs of the
Committee Report 275 Share Information
69 Employee Capital Company
151 Nomination Committee 280 Independent Assurance
86 Social and 170 Statement of Directors’
Report Report
Environmental Capital Responsibility
152 Related Party 282 Certificate of the
171 Independent Auditors’
Transactions Review director/principal
Report
Committee Report officer/precedent partner
176 Statement of Profit on transfer pricing
154 Risk Management
or Loss and Other
283 Global Reporting
Comprehensive Income
Initiatives (GRI)
177 Statement of Financial Standard Disclosures
Position Index
178 Statement of Changes in 289 Distribution Network

Equity
291 Service Network and
181 Statement of Cash Flows Fashion
Academy Network
183 Notes to the Financial
Statements 293 Glossary
294 Notice of Annual

General Meeting
Enclosed Form of Proxy

4 5 13 25 35
ABOUT THIS REPORT

Report Period
The Annual Report 2018/19 of Singer (Sri Lanka) PLC covers Our voluntary partnership with the Central Environmental
the 12-months period from 1st April 2018 to 31st March 2019. Authority in the National Cooperate E-Waste Management
This period is consistent with the Company’s usual annual Project was driven by this same conviction. As detailed in the
reporting cycle for both financial and sustainability reporting. Social and Environmental Capital section, we are forerunners
in e-waste collection. We also attempt to increase the
recyclable content of all our products and packaging. This is
Report Boundary and Content
the reason we substituted Styrofoam with natural recycled
Unless otherwise stated, the 2018/19 Annual Report is limited paper packaging, well before it was regulated.
to the Company’s operations in Sri Lanka. Therefore, the
operations of our Subsidiaries, Singer Finance (Lanka) PLC,
Singer Digital Media (Pvt) Limited, Singer Business School Compliance
(Pvt) Limited, Regnis (Lanka) PLC, Regnis Appliances (Pvt) Singer Sri Lanka’s Annual Report for 2018/19 adopts the
Limited, Singer Industries (Ceylon) PLC, and Reality Lanka Global Reporting Initiative (GRI) Guidelines and covers the
Limited, and Domus Lanka (Pvt) Limited are included in the economic, environmental and social performance for the
Annual Report. financial year ended 31st March 2019.
Economic, social, and environmental parameters that affect Our first Report based on GRI G3 Guidelines was published in
our business and stakeholders have been considered in 2010. Thereafter, in 2013 we adopted GRI G3.1 Guidelines to
deciding the content of this Report. report our sustainability performance. The 2015 Annual Report
was based on GRI G4 Guidelines. This report is prepared in
accordance with the requirements of the Global Reporting
Data Measurement Techniques
Initiative “In accordance” – Core Guidelines.
and Base of Calculation
Financial data presented in this Report have been extracted Messrs. Ernst & Young provides sustainability assurance for
from Audited Financial Statements. The accounting policies the organisation.
adopted in preparation of the Financial Statements including
the basis of preparation and significant assumptions are given
on pages 184 to 201. The man hours in respect of training Comparability
extended to employees is computed based on the scheduled The basis for reporting on subsidiaries, joint ventures and
time for each training session. other entities, leased facilities, outsourced operations as well
as any restatements and significant changes from previous
The scope, boundary and measurement methods used in the reporting periods in the scope, boundary or measurement
preparation of this Report are the same as those used in our methods are disclosed where appropriate. They are in
previous Report for the fifteen months ended 31st March 2018. compliance with the reporting standards disclosed in the
The information presented in this Report in respect of prior Financial Reports.
periods has not been restated.
Queries
Our Response to Precautionary Approach We will be pleased to respond to any queries on this Report.
We remain committed to safeguarding the public in conducting You may contact:
our business operations. Therefore, every effort is taken to Finance Division,
keep our customers and the communities informed of any Singer (Sri Lanka) PLC,
potential risk they may face as a result of our operations. No. 112, Havelock Road,
Precautionary approach is practiced in introducing new Colombo 5.
products by the Company. In our efforts to be proactive, we
anticipate possible health or environmental risks in advance
and take apt measures to address them. This is why we
adopted CFC-free gas at a very early stage and used zero
ozone impact R600a natural refrigerants. We were prompted
to adopt these measures out of our concern towards
the environment.
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REPORTS INFORMATION
SINGER
AT A GLANCE
AS THE UNDISPUTED LEADER IN THE CONSUMER
DURABLES MARKET OF SRI LANKA, SINGER
SRI LANKA IS PERFECTLY POSITIONED TO INNOVATE,
EXCITE, AND MAINTAIN OUR DOMINANT POSITION
WELL INTO THE FUTURE.
6
VISION/MISSION/
VALUES AND
OBJECTIVES
8 9 10 12
HISTORY HIGHLIGHTS 2018 REVIEW PERIOD AWARDS AND
AT A GLANCE ACCOLADES
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SINGER’S BUSINESS MANAGEMENT DISCUSSION
LEADERSHIP MODEL AND ANALYSIS
ANNUAL REPORT 2018/19 Singer At a glance
HISTORY
1851 2004
Isaac Merrit Singer incorporated I. M. Singer & Company Established Singer Finance (Lanka) PLC.
(Singer) and commenced production of sewing machines in
2010
the United States.
1877 Singer Finance (Lanka) PLC listed via Rs. 400 million IPO.
2011
Singer commenced operations in Sri Lanka introducing
sewing machines.
1974
Singer entered large scale smart phone business in Sri Lanka.
Incorporated as a Limited Liability Company. 2013

1981
Subsidiary Company Regnis (Lanka) PLC introduced a
range of refrigerators with R600a refrigerant technology
(Natural hydro-carbon technology) being the first Company in
Listed in the Colombo Stock Exchange. South Asia.
1988 2016
Singer commenced manufacturing refrigerators in Sri Lanka Conducted a group restructuring and acquired majority stakes
through Regnis (Lanka) PLC. of Regnis (Lanka) PLC and Singer Industries (Ceylon) PLC
from its common parent, Retail Holding Sri Lanka BV (Formerly
1992
known as Singer (Sri Lanka) BV).
Singer commenced manufacturing of furniture and agricultural

products at the Piliyandala factory.
2017
Hayleys PLC, acquired the controlling stake of Singer
1998
(Sri Lanka) PLC, making Hayleys PLC the parent company of
Singer with effect from 15th September 2017.
2018
First Singer Mega store opened in Sri Lanka.
2000 Changed the Financial year of the Company to 31st March

with the approval of the Registrar of Companies.
Acquired the local brand, SISIL.
2019
2001 Singer Head Office and Registered Office was
First Singer Homes store opened in Sri Lanka. located to No. 112, Havelock Road,
Colombo 5.
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REPORTS INFORMATION
AWARDS AND ACCOLADES
Great Place to Work – Dell partner awards – Elite member in

Sri Lanka’s Top 25 Best Best distributor of the year “Hall of Fame”
Companies to work for
Gold Award – Peoples Award – Peoples Durable

Trading Category: SLIM Nielsen People’s Brand of the
The Institute of Brand of the Year 2019 Year 2019
Chartered Accountants,
Sri Lanka
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HIGHLIGHTS
Current financial period 2018/19 – Twelve months period from 1st April 2018 to 31st March 2019.
Comparative financial period 2017/18 – Fifteen months period from 1st January 2017 to 31st March 2018.
Group Company
For Twelve For Fifteen Increased/ For Twelve For Fifteen Increased/
months ended months ended (Decreased) months ended months ended (Decreased)
31st March 2019 31st March 2018 31st March 2019 31st March 2018
Rs. ’000 Rs. ’000 % Rs. ’000 Rs. ’000 %
Group Revenue – Net 58,505,395 65,122,305 (10.2) 43,617,889 50,910,033 (14.3)

Net Finance Cost 3,033,076 2,531,375 19.8 2,320,956 2,149,727 8.0
Profit Before Tax 672,129 2,049,052 (67.2) 88,713 1,105,879 (92.0)
Profit For the Period 385,981 1,220,295 (68.4) 140,550 999,023 (85.9)
Total Comprehensive Income for the
Period (Net of Tax) 1,006,328 691,655 45.5 447,850 794,117 (43.6)
Stated Capital 626,048 626,048 – 626,048 626,048 –
Revenue Reserves 5,035,831 5,495,478 (8.4) 2,851,601 3,326,088 (14.3)
Capital Reserves 1,118,123 577,919 93.5 1,158,333 847,555 36.7
Statutory Reserves 163,096 136,009 19.9 – – –
Non-Controlling Interest 1,508,546 1,349,114 11.8 – – –
Total Equity 8,451,644 8,184,569 3.3 4,635,982 4,799,692 (3.4)
Property, Plant & Equipment – Net 6,704,649 5,649,424 18.7 3,498,021 3,082,598 13.5
Other Investments 17,061 17,061 – 616,203 929,110 (33.7)
Net-Current Assets 4,101,153 327,895 1,150.8 5,288,761 675,683 682.7
Gross Dividends* N/A N/A – 244,159 826,383 (70.5)
Dividend per Share – Rs. N/A N/A – 0.65 2.20 (70.5)
Dividend Payout Ratio – % N/A N/A – 1.74 0.83 110.0
Earnings per Share – Rs. 0.67 2.78 (76.0) 0.37 2.66 (85.9)
Price Earnings Ratio – times N/A N/A – 66.81 15.12 342.0
Net Assets per Share – Rs. 18.48 18.20 1.6 12.34 12.78 (3.4)
Market Price per Share –
Rs. 31st March 2019 – (31st March 2018) N/A N/A – 25.00 40.20 (37.8)
Net Income to Net Turnover – % 0.66 1.87 (64.8) 0.32 1.96 (83.6)
Return on Average Net Assets/Equity – % 4.64 13.76 (66.3) 2.98 18.62 (84.0)
Debt Ratio – % 68.21 83.82 (18.6) 87.51 85.89 1.9
Debt to Equity 3.32 3.62 (8.3) 4.49 3.54 26.9
Gearing Ratio (Times) 0.77 0.79 (2.4) 0.83 0.79 4.7
Interest Cover (Times) 1.21 1.76 (31.3) 1.03 1.44 (28.5)
Dividend Cover (Times) N/A N/A – 0.58 1.21 (52.4)
Current Ratio (Times) 1.12 1.01 10.6 1.23 1.03 19.8
Acid Ratio (Times) 0.72 0.65 10.2 0.70 0.59 18.0
101 161 271 11
REPORTS INFORMATION
Highlights
Financial Capital
Rs. 58,505 million Rs. 672 million Rs. 0.67 Rs. 0.65
Group revenue Group profit before tax Group earnings per share dividend per share
Institutional Capital
442 retail shops Multiple brands, unmatched

across the country products portfolio after sales services
and multiple
financing options
Customer Capital
over 9 million over 1.3 million

customers loyalty members
Employee Capital
2,798 5th consecutive year singer Core Unique

Employees recognised as “Great Place to Work” Competences culture
Social and Environmental Capital
CSR – Dedicated to improve education, sports and health.

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REVIEW PERIOD AT A GLANCE
2018
April September
Upgraded satellite shop in Ginigathhena to Singer Plus Annual Fashion Show and Awards Ceremony.
showroom and opened a new satellite shop in Katupotha. Launched of new Sony Audio Range.
Upgraded satellite shop in Kalawana to Singer Plus showroom.
May
Opened a new service centre in Vauniya. October
8th Installation Ceremony of Singer Sri Lanka Toastmasters Club.
June Singer Finance Annual Awards Ceremony.
Launched Sony “BRAVIA OLED” TV.
Opened a SISIL shop in Galewela and upgraded satellite shop
in Thalawa to Singer Plus showroom.
November
July Singer Life Style Fiesta – 2018.
Annual Digital Media Convention 2018. Launched Singer Epic AI TV Kids Art Competition.
5th Installation Ceremony of Singer Rotaract Club.
Upgraded satellite shop in Kosgama to Singer Plus showroom. December
Opened a new SISIL shop in Moratuwa. Upgraded two
August satellite shops in Polpithigama and Diyathalawa to Singer Plus
showroom and opened a new satellite shop in Labuduwa.
Opened a Singer Plus showrooms in Puthukkuduirippu
and upgraded satellite shop in Kodikamnam to Singer
Plus showroom.
2019
January March
Annual religious ceremony. Won “People’s Brand of the year” for the 13th consecutive
year and “Durable Brand of the Year” at Slim-Nielsen
February Peoples Awards.

Opened three Singer Plus showrooms in Moratuwa, Gampola,
Opened a new SISIL shop in Hingurakgoda. Upgraded and Kurunegala and opened a new satellite shop in Tissapura.
satellite shop in Natthandiya to Singer Plus showroom. Opened new Mega shop in Kaduwela.
101 161 271 13
REPORTS INFORMATION
SINGER’S
LEADERSHIP
SINGER IS LED BY LEADERSHIP DEDICATED TO
MAXIMISING LONG-TERM VALUE TO ALL OUR
STAKEHOLDERS. OUR BOARD DETERMINE THE
STRATEGY AND DIRECTION OF THE COMPANY AND
OVERLOOK ITS EXECUTION WHILE MANAGING RISK.
14 16 18 22
CHAIRMAN’S CEO’S REVIEW BOARD OF MANAGEMENT
MESSAGE DIRECTORS TEAM
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SINGER AT BUSINESS MANAGEMENT DISCUSSION
A GLANCE MODEL AND ANALYSIS
ANNUAL REPORT 2018/19 Singer’s Leadership
CHAIRMAN’S
MESSAGE
Singer Sri Lanka will

continue to build the
pipeline towards future
growth and will ensure
that the “Singer” brand
name continues to be in
the hearts and minds of
the people.
Dear Shareholder,
I am pleased to present the Annual Report and Audited Financial
Statements of Singer (Sri Lanka) PLC for the Financial Year 2018/2019.
The year under review was a challenging year. Lower growth in

GDP and per capita income together with continuous drought in
the dry zone of the country in first half of the year coupled with
political instability during the latter part of the year 2018 adversely
affected consumer purchasing power of large market segment.
Depreciation of Sri Lankan Rupee against the US Dollar was one
of the key adverse impacts, due to the lagging effect to adjust the
market prices. The Interest rates too remained at a higher levels
than expected.
All these facts resulted in an adverse impact to the local

Consumer Durables industry, in which Singer Sri Lanka operates.
The Consumer Durables industry is more susceptible to market
and economic conditions than other business sectors. When the
customer’s disposable income and markets sentiments decrease,
the demand for consumer durables is well below that of the
general market and vice versa.
Performance
The Singer Group recorded a revenue of Rs. 58.5 billion for
the twelve-month period 2018/19, compared to Rs. 53.1 billion
for same period in the prior year with a growth of 10% , whilst
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REPORTS INFORMATION
Chairman’s Message
compared to Rs. 65.1 billion revenue during the fifteen month The financing arm Singer Finance (Lanka) PLC which commenced
period of 2017/2018 as appears in the Financial Statements given operations in 2004 has evolved as a medium to large scale
in page 176. Finance Company in the last decade. The Company performed
reasonably well despite the intense competition. Total assets of
The Group posted an Operating profit of Rs. 3,997million for the Singer Finance grew by 21.1% to Rs. 19.5 billion, YoY to 31st
twelve months ending 31st March 2019 and a profit of Rs. 672 million March 2019. Over the years, Singer Finance was conservative in
before tax and Rs. 386 million after tax for the twelve month period their growth plans. However, this notion has changed after Hayleys
compared to Profit Before Tax of Rs. 2,049 million and Profit After Tax PLC took over the ownership of Singer Sri Lanka PLC; Singer
of Rs. 1,220 million for the fifteen month period in prior year. Finance has now more ambitious plans of branch expansion,
where the company expanded its presence by opening 4 new
Outlook branches and relocating 3 window operations.
Singer (Sri Lanka) Group is the largest retailer, financier and
manufacturer of consumer durables in Sri Lanka, with 442 In the year under review, macro-economic conditions were not as
retail stores and a fast growing online e-commerce platform conducive for the industry due to multiple reasons as elaborated
representing a wide range of international consumer durable earlier and the new tax levy imposed directly on the financial sector.
brands. The company also serves over 2,800 dealers/sub
retailers. It is also renowned for its after-sales service network with The country faced an unexpected tragedy with terrorist attacks
14 Regional Service Centres and over 300 service agents. Apart by an extremist group on the Easter day – 21st April 2019. The
from its household brands, the company is exclusive distributor impact of this attack was severe and perhaps the most sever in
for many well-known international consumer durable brands. this decade. The country needs to recover fast from this setback,
where I am hopeful of the capability and resilience of Sri Lankans
Despite the externalities having negatively impacted the business, to bounce back from tragedies as proven throughout our history.
Singer Sri Lanka will continue to build the pipeline towards future
growth and will ensure that the “Singer” brand name continues I take this opportunity to thank Mr. Asoka Pieris former Group Chief
to be in the hearts and minds of the people, by expanding the Executive Officer for his contribution, long service and leadership
customer base through our branch network; serving Singer’s during his tenure at the Company. I welcome Mr. Mahesh
customers by providing innovative and exciting product offerings Wijewardene to the Group as Chief Executive Officer. Mr. Mahesh
together with a greater shopping experience. Wijewardene has been with Singer for 22 years and I wish him
continued success with the Singer Group.
Key Strategies
I would like to acknowledge Mr. Gavin Walker’s contribution to
Singer Sri Lanka enjoys market leadership in many categories. the company on his resignation from the Board after serving as a
Over the last 140 years, Singer has remained the market leader Director to the Board from year 2005 and pleased to welcome Ms.
in sewing machines and today it has successfully branched Otara Gunewardhana as Non-Executive Director to the Board.
out to be the market leader in consumer durables – namely in
refrigerators, televisions, fans, and small appliances etc. Today Mr. Stephen Goodman who was reappointed to the Board on
Singer is the market leader in smartphones, domestic computers 26th June 2018 has intimated that he does not wish to present
and laptops in Sri Lanka, a product that is closely associated with himself for reappointment at the forthcoming Annual General
the youth of this country. Meeting and would thus cease to be a Director on conclusion
of the Annual General Meeting on 25th June 2019. I take this
Furniture will be a key focus area going forward, and many initiatives opportunity to acknowledge his contribution and long service to
are in place to enhance competitiveness. The company intend the Board and Singer Group.
to partner with new suppliers, to introduce world class brands
along with a wider range to suit the needs of our customers. I place my appreciation to all Senior Management Team, and all
The Company will step up its efforts in e-commerce, where we staff members for their continued dedication and commitment.
have introduced web access to all stores. Singer Sri Lanka has I wish to express my heartfelt gratitude to the members of the
to contend with an intense competition from both large and Board for their support and commitment. Last but not least,
established retailers as well as a growing wholesale trade with I thank our customers and shareholders for their continued trust in
many new players joining the industry encouraged by open market Singer (Sri Lanka) PLC.
access to imports of home branded or generic brand products. The
Consumer durables and mobile phone pricing in the market place Sincerely,
is very competitive. However, we would differentiate with our quality
offering and after sales service. We encourage competition, as it
makes us be ahead of our strategies, ensuring that we are neither
complacent nor satisfied with mediocrity. Leveraging the trust in
the Singer brand and offering customers a wide range of consumer
durables along with outstanding customer service and after sales Mohan Pandithage
service are Singer’s key differentiation factors which has enabled us Chairman
to build trust and long-lasting relationships with our customers. 16th May 2019
16 5 25 35
CEO’S REVIEW
Since assuming my position

as Chief Executive Officer in
November 2018, our overall
approach has been to create
a company that runs on the
highest professional and
global standards which we
firmly believe is the way to
thrive in markets.
The year under review proved to be a challenging year

due to sluggish market conditions impacted by many
macro-economic factors. Despite this, Singer was able
to grow the top line by 10% to reach Rs. 58.5 billion in
revenue compared to the twelve months period 2017/18
a commendable achievement under tough conditions. Our
margins were impacted due to a variety of factors including
rising interest rates, pricing under low consumer disposable
income to maintain volumes in a weak market. Being reliant
on imports, the devaluation of the Sri Lanka Rupee was not
favourable to us and change to new accounting standard
(IFRS 9 and 15) with additional provisioning requirements.
Since assuming my position as Chief Executive Officer in

November 2018, our overall approach has been to create a
company that runs on the highest professional and global
standards which we firmly believe is the way to thrive in
markets. We have focused on every individual operation in
detail and established a stringent set of KPIs to achieve. We
are gradually aligning ourselves to most of the strategies we
set out for ourselves and happy to note that our efforts over
the past several months have turned out positive results. We
believe that an improved market condition will trigger these
KPI’s to deliver much stronger results in future.
2018 also marked a year since Hayleys PLC acquired Singer

(Sri Lanka) PLC, and it has been an extremely productive year
101 161 271 17
REPORTS INFORMATION
CEO’s review
of business synergies as well as establishing strategies for us quality assurance, and online sales. We are investing in process
to align ourselves to some group strategies. Singer expanded development, particularly for logistics management, demand
the diversification of the conglomerate into a new retail planning and forecasting. We will also be revamping the
segment and we anticipate certain synergies as being part of website with the assistance of foreign consultants to take our
a large conglomerate; there will be many opportunities for us online business to the next level.
to work together. Day-to-day operations, administrative, and
HR functions stand to benefit from the sharing of knowledge Singer has long had Corporate Social Responsibility (CSR)
and best practices. As of now, approximately 60% of our initiatives, particularly in the areas of education, health, and
logistics are managed by Hayleys Advantis, and Singer has youth development. What we intend to do now is to focus on
been able to conduct sales for the majority of employees from those sectors in a more structured and sustainable manner.
the Hayleys Group. We continue to seek further synergies and We have recruited a dedicated person who will work on the
efficiencies between the companies. sustainability of the Company and as part of that initiative,
we will bring more focus to those areas of CSR. We are also
During the past year, we took a more proactive stance towards taking greater responsibility in the disposal of e-waste by
the future of Singer Sri Lanka with regard to our operations taking extended producer responsibility (EPR) seriously, that is
and performance. We are consolidating our retail channels to focus on the responsible disposal of our products beyond
by converting SISIL World stores into Singer Plus stores. the period of ownership and usage by our customers.
The wholesale channel operation was restructured to better
manage those operations and achieve increased operational Our continued performance, exemplary customer services, and
efficiencies. We also looked to lower administrative costs CSR efforts were recognised in 2018. Singer Sri Lanka moved
without negatively impacting functionality. We are looking to up a place to overall 11th position as one of the most valuable
extend our reach to more townships, building further on our consumer brands in Sri Lanka and number one in the Retail
strength of having one of the largest branch networks in the sector (LMD Brands Annual). We were awarded for the 13th
country; retail spaces in certain areas also received significant consecutive year as the “People’s Brand of the Year” at the
enhancements. We see increasing potential from e-commerce SLIM-Nielsen People’s Awards, in addition to the “Consumer
and will place a greater focus on having a more efficient online Durables Brand of the Year”. We also picked up the Gold award
platform. Although our primary strength has been as a brick for our 2017 Annual Report in the Trading Companies category
and mortar retail business, the increasing importance of online at the CA Sri Lanka Annual Report Awards.
shopping and how customers are embracing new channels for
I would like to acknowledge the direction and guidance of our
shopping cannot be ignored. We will give more focus on B2B
parent company, Hayleys. Our Chairman and Co-Chairman
and commercial business, as there is immense potential to
have been extensively involved in developing strategies and
develop the channel to cater to the needs of corporate clients
helped greatly to drive their inputs into the Company; thank
with complete solutions. A more customer-oriented approach is
you for your continued confidence in Singer. Special thanks
being driven across the company that will help to differentiate
go to our former CEO, Mr. Asoka Pieris, for his services
us from the rest of the industry; as products become more
rendered to the Company spanning 26 years, eight of which
and more commoditised, a well-trained and knowledgeable
he served as CEO; his efforts have undoubtedly helped to put
salesforce and after sales support will bring us that extra
Singer on the pedestal it is today. I extend my appreciation
advantage. We will continue to expand our product portfolio,
to our employees who have been supportive throughout this
improve product mix and margins, and look to have more
difficult year and helped to maintain our market leadership
product diversification to cater to different industries, such as
position, and we hope you will continue to take us forward in
agricultural and heavy equipment, and IT equipment solutions.
the coming year. I want to express my sincere gratitude to the
We are looking at a rapid expansion of Singer Finance from a Board of Directors and shareholders for having confidence in
med size company to reach to big league. Singer Finance has me to take the Company forward. Finally, I wish to express my
gained a very good name and a reputation in the industry and appreciation to our customers for your continued support and
we are confident that they will boost their position in the market. loyalty to Singer, and we pledge to always serve you with the
Our factories are now geared to bring in new technologies highest standards.
and introduce new/advanced products at a faster pace. We Sincerely,
have already lined up a new range of world-class and cost-
competitive refrigerators and washing machines line-up for the
coming year from Regnis. The Furniture factory is focused on
their production output, quality, and competitiveness of their
products in the marketplace; we see great opportunities in the
market for pantry cupboards. The Call Centre is now being
Mahesh Wijewardene
used as an integrated operational division of the Company Group Chief Executive Officer
to support many other functions such as after sales service,
16th May 2019
18 5 25 35
BOARD OF
DIRECTORS
Mr. Mohan Pandithage Mr. Dhammika Perera Mr. Mahesh Wijewardene
Executive Chairman Non-Executive Co-Chairman Group Managing Director/
Group CEO
Joined to the Board of Singer Joined to the Board of Singer (Sri Lanka)
(Sri Lanka) PLC on 2nd October 2017. PLC on 2nd October 2017. Joined to the Board of Singer
Joined Hayleys Group in 1969. Appointed to (Sri Lanka) PLC on 1st June 2006.
Mr. Dhammika Perera is the quintessential strategist
the Hayleys PLC Board in 1998. Chairman and and business specialist with interests in a variety of Mr. Mahesh Wijewardene was appointed
Chief Executive of Hayleys PLC since July 2009. key industries including manufacturing, banking and as an Executive Director and the Chief
Fellow of the Chartered Institute of Logistics finance, leisure, aluminum extrusion, packaging, Executive Officer of Singer (Sri Lanka) PLC
and Transport (UK). Honorary Consul of United plantations, lifestyle, healthcare, consumer and and its subsidiary companies with effect
Mexican States (Mexico) to Sri Lanka. Council hydropower generation. from 1st November 2018. Mr. Wijewardene
Member of the Employers’ Federation of holds a Master’s Degree in Business
Ceylon. Member of the Advisory Council of the He has over 30 years of experience in building
Administration from the University of Southern
Ceylon Association of Ships’ Agents. formidable businesses through unmatched strategic
Queensland and received the Dean’s Award
foresight and extensive governance experience
Recipient of the Best Shipping Personality for Outstanding Academic Achievement. He
gained through membership of the Boards of
Award by the Institute of Chartered Ship also holds a Diploma in General Management
quoted and unquoted companies.
brokers, Excellence Leadership Recognition – from the Open University of Sri Lanka.
Institute of Chartered Accountants of Sri Lanka; Mr. Perera is the Chairman of Vallibel One PLC, Mr. Wijewardene is the past Chairman of the
Honoured with life time achievement award at Royal Ceramics Lanka PLC, Lanka Tiles PLC, Ceylon Chamber of Commerce – Import
Seatrade – Sri Lanka ports, Trade and logistics; Lanka Walltiles PLC, The Fortress Resorts PLC, section and Sri Lanka – China Business
Life time award for most outstanding logistics Vallibel Power Erathna PLC, Greener Water Ltd, Council and is a member of the Hayleys
and transport personality of the year Chartered Unidil Packaging Ltd, Delmege Limited, and LB Group Management Committee.
Institute of Logistics Transport. Microfinance Myanmar Company Limited. He is the
Mr. Mahesh Wijewardene has served on
Co-Chairman of Hayleys PLC, and The Kingsbury
Singer (Sri Lanka) PLC board previously as
PLC. Executive Deputy Chairman of LB Finance
an Alternate Director from 1st June 2006 to
PLC, Deputy Chairman of Horana Plantations PLC.
31st October 2018.
He is also an Executive Director of Vallibel Finance
PLC and serves on the Boards of Amaya Leisure Mr. Wijewardene serves as a Director of Singer
PLC, Haycarb PLC, Hayleys Fabric PLC and Dipped Industries (Ceylon) PLC, Singer Finance (Lanka)
Products PLC. PLC, Regnis (Lanka) PLC, Regnis Appliances
(Pvt) Limited, Singer Digital Media (Pvt) Limited,
Singer Business School (Pvt) Limited, Reality
Lanka Limited, Domus Lanka (Pvt) Limited and
CSR Lanka (Guarantee) Limited.
101 161 271 19
REPORTS INFORMATION
BOARD OF DIRECTORS
Mr. Deepal Sooriyaarachchi Mr. Dumith Fernando Mr. Mohamed Hisham

Independent Non-Executive Director Independent Non-Executive Jamaldeen
Director Independent Non-Executive Director
Joined to the Singer (Sri Lanka) PLC Board on
the 1st October 2015. Joined to the Board of Singer Joined to the Board of Singer (Sri Lanka)
(Sri Lanka) PLC on 2nd October PLC on 2nd October 2017.
Mr. Deepal Sooriyaarachchi is a Chartered
Marketer, a Fellow of the Chartered Institute 2017.
He is a finance professional with over 17 years
of Marketing UK and holds an MBA from the Mr. Fernando is Chairman of Asia of wide-ranging experience as a commercial
University of Sri Jayewardenepura and an Securities (Pvt) Ltd, a leading property investor and advisor. He is a Fellow
Accredited Master Coach and a Master Mentor. independent Investment Banking, of the Association of Certified Chartered
Mr. Sooriyaarachchi, counts over thirty years of Research and Stock Broking firm in Accountants, UK and holds a Degree in
experience in the fields of sales, advertising, Sri Lanka. Mr. Fernando has over two Engineering and Business from the University
marketing, human resource development decades’ experience in international of Warwick, UK. He is the Founder/Managing
and strategy. He is a renowned Management Investment Banking, based in New Director of Steradian Capital Investments (Pvt)
Consultant Speaker Trainer Author and an Executive York and Hong Kong, with the U.S. Ltd, responsible for Financing, Corporate
Coach and a Mentor. Before embarking on full bank JPMorgan Chase & Co. and Structurers, Acquisitions’ and Development.
time consultancy work he was the Managing the Swiss bank Credit Suisse AG.
He serves as a Director of Singer Industries
Director of AVIVANDB Insurance PLC (now Previously, he was Managing Director
(Ceylon)PLC, Regnis (Lanka) PLC, Hayleys
known as AIA Insurance). He had received and Group Chief Operating Officer for
PLC, Talawakelle Tea Estates PLC, Haycarb
extensive management training and exposure the Asia Pacific region at Credit Suisse
PLC and Lanka Relity Investments PLC. He is
here and overseas including National University – a business with over USD 2.5 billion
also Executive Director of numerous real estate
of Singapore, Asian Institute of Management and in revenues across 12 countries.
companies focusing commercial property
Stanford Business School USA. Mr. Fernando is a Director of the investment and development.
Mr. Sooriyaarachchi serves as a Non-Executive Colombo Stock Exchange.
Independent Director of; AIA Insurance Lanka He holds a BA (Honors) in Physics and
PLC, Sampath Bank PLC, Pan Asian Power PLC. Economics from Middlebury College,
He is a consulting partner of RBL USA. U.S.A. and an MBA from Harvard
He is a Past President of the Sri Lanka Institute of Business School.
Marketing, and a Past Commissioner of Sri Lanka
Inventors Commission.
20 5 25 35
BOARD OF DIRECTORS
Mr. Dilip Kumar De Silva Ms. Otara Gunewardene Mr. Sarath Ganegoda
Wijeyeratne Independent Non-Executive Director Non-Executive Director
Independent Non-Executive Director Joined to the Board of Singer (Sri Lanka) Joined to the Board of Singer
Joined to the Board of Singer (Sri Lanka) PLC on the 1st August 2018. (Sri Lanka) PLC on 2nd October 2017.
PLC on the 1st April 2018. Ms. Otara Gunewardene rose to fame as Fellow Member of The Institute of Chartered
Mr. Wijeyeratne is an Associate member of The Sri Lanka’s leading female entrepreneur, fashion Accountants of Sri Lanka and Member
Institute of Chartered Accountants of Sri Lanka icon and philanthropist. Her lifestyle store, Odel, of the Institute of Certified Management
(ACA), Fellow Member of the Chartered Institute became renown throughout Asia as a top retailer Accountants of Australia. Holds an MBA from
of Management Accountants, UK, (FCMA) and and Otara was the first female entrepreneur to the Postgraduate Institute of Management,
a Graduate Member of the Australian Institute of take her company public in Sri Lanka in 2010. University of Sri Jayewardenepura. He has
Company Directors (GAICD). wide-ranging experience in several Senior
After 25 years of hard work and dedication
Management positions in large private sector
He moved as a finance professional to Price that spearheaded Odel as Sri Lanka’s number
entities in Sri Lanka and internationally. He also
Waterhouse, Bahrain, and has extensive experience one department store, Otara sold her shares
served the Hayleys Group between 1987 and
in audit and advisory services. Commenced a to Softlogic PLC in 2014, marking the end of a
2002 and re-joined in 2007. Mr. Ganegoda
Banking career at HSBC Bank Middle East, as Head glorious era.
was appointed to the Hayleys Group
of Finance and Operations and latterly, was Head of During her tenure at Odel, Otara initiated Embark Management Committee in July 2007.
Global Markets and Treasury for the group offices of – a brand that would be synonymous with street
HSBC Group in the Kingdom of Bahrain. A member Mr. Ganegoda serves as a Director of Singer
dog welfare in Sri Lanka. Otara revolutionised the
of the Senior Management team. Responsible for Industries (Ceylon) PLC, Regnis (Lanka) PLC,
idea of street dog welfare in Sri Lanka by using
Corporate Treasury Sales and management of Regnis Appliances (Pvt) Limited, Singer Digital
all profits from Embark’s brand and merchandise
Asset and Liability Management (ALCO) for three Media (Pvt) Limited, Reality Lanka Limited,
towards rescue and treatment operations. With
legal entities of HSBC group operating in Bahrain. Singer Business School (Pvt) Limited and
the progression of Embark as an organisation
In 2010, joined Third Wave International WLL (TWI) Hayleys PLC since 2009 and has responsibility
that works towards rescuing, treating, rehoming
as an equity partner and CEO and embraced for the Strategic Business Development Unit of
and improving the lives of street dogs, Otara has
entrepreneurship. Leads a team of consultants Hayleys PLC.
also branched out to animal welfare in general,
and facilitates consultancy offerings in Financial environmental conservation and social welfare
Advisory, Human Resources, Marketing, Project and through both Embark and the Otara Foundation.
Quality Management, Research and Learning and
Development to the private and public sector entities
in Bahrain and Oman.
Mr. Wijeyeratne serves as a Non-Executive

Director of Regnis (Lanka) PLC, Singer
Industries (Ceylon) PLC, Hayleys Fibre PLC
and Sampath Bank PLC.
101 161 271 21
REPORTS INFORMATION
BOARD OF DIRECTORS
Mr. S.H. Mr. L.N.S. Kumar Mr. Lalith Yatiwella Mr. H.P. Sujeewa
Goodman Samarasinghe Alternate Director to Perera
Non-Executive Alternate Director to Mr. S. Ganegoda Alternate Director to
Director Mr. M.H. Jamaldeen Mr. Mahesh Wijewardene
Joined the Board of Singer
Re-appointed to the Re-appointed to the Board of (Sri Lanka) PLC on 8th August 2014. Re-appointed to the
Board of Singer Singer (Sri Lanka) PLC on Director Finance of Singer (Sri Lanka)
Board of Singer
(Sri Lanka) PLC on 22nd January 2019. PLC. He is also a Director of Singer (Sri Lanka) PLC on
26th June 2018. Digital Media (Pvt) Ltd., Singer Business 22nd January 2019.
Director – Marketing Singer (Sri
Mr. Goodman is an Lanka) PLC. Holds a Diploma School (Pvt) Ltd. Alternate Director of Mr. Sujeewa Perera is the
Executive Director in Business Administration and Singer Finance (Lanka) PLC. Factory Director of Singer
and Chairman of Diploma in Marketing and MBA from Mr. Yatiwella is an Associate Member of (Sri Lanka) Factory complex
the Board of Sewko University of London. The Institute of Chartered Accountants in Piliyandala.
Holdings Limited and of Sri Lanka and holds a BSc
Mr. Samarasinghe has served He joined the Singer Group
is Chairman of the (Hons) Special Degree in Business
on Singer (Sri Lanka) PLC Board in September 1994 as
Board of Singer Asia Administration from the University of
previously as an Alternate Director an Internal Auditor after
Limited. He is also Sri Jayewardenepura.
from February 2011 to October 2018. completing articles at KPMG
Director, Chairman,
and joined Singer Sri Lanka
President and Chief
Factory as an Assistant
Executive Officer of
Accountant in June 1997
Retail Holdings N.V.
and risen through the
Mr. Goodman has
Corporate ladder.
held such similar
positions within the Mr. Perera has served on
Group since 1998. Singer (Sri Lanka) PLC
He holds a BS Board previously as an
(Economics) from Alternate Director from May
the Cornell University 2016 to March 2018.
and an MA, Mph
(Economics) from the
Yale University.
Not in picture
22 5 25 35
MANAGEMENT
TEAM
Mr. S. Ramanathan Mr. J. Mendis Mr. L.A.D.K. Perera Mr. B.T.L. Mendis
Director – Logistics Credit Director Director – Information Technology Director – Commercial
Mr. K.D.J.M. Perera Mr. T. Amarasuriya Mr. V. Tennakoon Mr. R. Kulasuriya

Director – Operations Chief Executive Officer – Director – Sales Director – Human Resources and
Singer Finance (Lanka) PLC Business Integration
Mr. A.P. Manorathna Mr. D.B. Wijesundara Mr. M.I. Carder Mr. G.A.K. Weerasuriya
Deputy Director – Services Deputy Director – Marketing Head of Treasury and Senior Manager – Inventory
Investor Relations
Mr. A.U. Karunarathne Mr. T.G.S. Perera Mr. I.A.S. Kolombage Mr. M.M.C. Priyanjith
Senior Manager – Merchandising Senior Manager – Field Inventory Commercial Manager Head of Risk Management
and Promotions Operations
101 161 271 23
REPORTS INFORMATION
Management Team
Mr. V. Gomes Mr. W. L.I.A. Gunathilake Mr. K.R.L. Perera Mr. A.R.N.P.K. Wijesundara
Head of Financial Services Business Development Manager – Group Administration Manager Sales Manager – Agro and
Mega and Singer Homes Channel Transportation
Mr. S.H. Perera Mr. T.J. Martyn Mr. A.A. Sathiyamoorthy Mr. P. Jayatilake
Senior Manager – Budget and Senior Manager – Apparel Senior Manager – Trade Credit Marketing Manager – Electronics
Planning Solutions
Mr. T.L. Senaviratne Mr. D.D.W. Dassanayake Mr. K.P. Peramunugamage Mr. L.R.P. Perera
Senior Manager – Information Senior Manager – Credit Head of Business School Business Development Manager –
Technology Retail Channel
Mr. N.I. Kuruppuarachchi Mr. S. Serasinghe Mr. N.B. Ranasinghe Mrs. P.T.K. Liyanage
Senior Manager – Legal Senior Manager – Distribution Senior Manager – Revenue and Finance Manager
Margin
24 5 25 35
Management Team
Mr. R.B. Gaspe Mr. K.I.S. Perera Mr. E.R.A. Silva Mr. K.D.S. Kanishka
Head – Strategic Business Business Development Mananger Business Development Manager – Senior Manager – Promotions
Development Unit – Whole Sale (South) Institutional Sales
Mr. T.U.S. Peiris Mr. S.M.D.S.K. Jayatilake Mr. M. Hanas Mr. G.T. Galagederage
Business Development Manager – Senior Manager – Human Business Development Manager – Senior Manager – Research and
SISIL Channel Resources Digital Media Development
Mr. T.W.S.M. Perera Dr. M. Balasuriya Mr. U. Ganehiarachchi

Senior Manager – Digital Media Head of Regulatory and Quality Business Development Manager –
Assuarance Whole Sale (North)
101 161 271 25
REPORTS INFORMATION
BUSINESS
MODEL
SINGER HAS ESTABLISHED A UNIQUE BUSINESS
MODEL THAT ENCOMPASSES A VAST OFFERING OF
BRANDS, PRODUCTS, AND SERVICES, AFFORDING
UNPARALLELED CHOICE TO OUR CUSTOMERS.
26 31 33
OPERATING STAKEHOLDER MATERIALITY
ENVIRONMENT ENGAGEMENT
26 5 13 35
SINGER AT SINGER’S MANAGEMENT DISCUSSION
A GLANCE LEADERSHIP AND ANALYSIS
ANNUAL REPORT 2018/19 Business Model
OPERATING ENVIRONMENT
While South Asia is the fastest

growing region in the world
at an estimated economic
growth of 6.9% in 2018,
Sri Lanka faced challenges
that hindered economic
growth from reaching its
potential, falling short of
IMF projections of 4.2% to
a recorded 3.2%, down from
3.4% in 2017.
The global economy declined in 2018 to a projected 3.7%
growth, a result of the decline in trade and manufacturing
activity following trade tensions between major economies.
Growth in advanced economies continued to decline, hitting
2.2% in 2018 against 2.3% in 2017, due to slower net export
activity in the Euro area and fiscal stimulus in the United
States. Borrowing costs for emerging market and developing
economies (EMDEs) increased as the US Dollar strengthened,
energy prices fluctuated, financial market volatility increased,
and risk premiums rose, leading to increased capital outflows
and currency pressures. Growth for EMDEs declined to an
estimated 4.2%.
101 161 271 27
REPORTS INFORMATION
Operating environment
While South Asia is the fastest growing region in the world The finance subsidiary of Singer (Sri Lanka) PLC, Singer
at an estimated economic growth of 6.9% in 2018, Sri Lanka Finance, was incorporated in 2004. Subsidiary companies,
faced challenges that hindered economic growth from Regnis (Lanka) PLC and Singer Industries (Ceylon)
reaching its potential, falling short of IMF projections of 4.2% PLC, manufacture washing machines, refrigerators, and
to a recorded 3.2%, down from 3.4% in 2017. The country’s sewing machines.
service industry and agriculture industry largely supported
growth at 4.7% and 4.8% respectively. Consumption and In September 2017, Hayleys PLC and its subsidiaries acquired
investment expenditure also supported growth. The total 61.73% of shares in Singer (Sri Lanka) PLC in what was the
size of the Sri Lankan economy was estimated at USD 88.9 single largest acquisition for a listed company in Sri Lanka in
billion and per capita GDP at USD 4,102. The country faced recent history. Hayleys PLC made a mandatory offer thereafter
additional burdens from a period of political instability towards in October 2017, and holds 80.96% of the total shares in issue
the end of 2018 which led to increased pressure on exchange at the first stage of acquisition. The acquisition has been a
rates and a downgrade in the Sovereign rating. Despite a smooth transition for both companies owing to similar cultures
growth in export earnings, import expenditure increased, and opportunities for business synergies.
leading to the trade deficit crossing USD 10 billion. The
Central Bank and Government addressed the widening trade On 15th October 2018, Hayleys PLC purchased the balance
deficit by increasing tariffs on non-essential imports, imposing 35,562,883 (9.47%) ordinary shares held by Retail Holdings
margin requirements, tightening loan-to-value ratios on certain (Sri Lanka) BV in Singer (Sri Lanka) PLC at a price of Rs. 47.00
types of lending, and suspending the issuance of letters of per share upon Retail Holdings (Sri Lanka) BV exercising
credit on concessionary permits for vehicle imports. their option to sell its shares to Hayleys PLC as previously
agreed at the time of the Mandatory Offer made in 2017. After
Government regulations imposing a 100% cash margin on accepting this offer, Hayleys PLC together with its Group
the import of most consumer durables affected the operating Companies holds 90.43% of Singer (Sri Lanka) PLC.
cash flows of Sri Lankan consumer durable retailers.
Demand for consumer durables had considerably declined The combined companies share over 280 years of experience
towards the end of 2018 as a result of the country’s lowered in the Sri Lankan market.
discretionary income levels and rise in interest rates. Retailers
were compelled to absorb some costs to stay competitive Operational Structure
and reduce the impact on demand but had to endure even
The Singer Group comprises nine companies and a separate
weaker operating margins. The measures applied to finished
manufacturing division.
goods, however, which gave Singer an advantage due to its
large local assembly operations for refrigerators and washing
Singer (Sri Lanka) PLC and Singer Digital Media (Private)
machines. Middle income earners were pressured to be
Limited serve as the Sri Lankan distributors for its home
more conservative with their spending, leading to the market
brands of “Singer” and “SISIL” and several major international
for electrical goods to decline between 10%-20% by the first
brands, and purchase materials and components from
quarter of 2019.
overseas suppliers. Additionally, Singer Industries (Ceylon)
PLC, Regnis (Lanka) PLC, and Regnis Appliances (Pvt)
The first quarter of 2019 also saw the measures the
Limited purchase materials and components from overseas
Government implemented help the Sri Lankan Rupee to
suppliers. The rest of Singer (Sri Lanka) PLC’s operations fall
appreciate against major currencies and the IMF resumed the
exclusively within Sri Lanka.
Extended Fund Facility (EFF) arrangement, helping to improve
investment sentiments. However, the country continues to
The Singer Group is spread across every geographical region
face a challenging operating environment which will lead to
in Sri Lanka. During the year, we opened 11 new showrooms in
conservative outlooks for the remainder of 2019.
Puthukudirippu, Kurunegala, Galewela, 2 shops in Moratuwa,
Hinguruakgoda, Kaduwela, Gampola, Katupotha, Labuduwa
Business Model/Strategy and and Tissapura. 8 Singer Plus stores received upgrades.
Execution History
The history of Singer goes back to the introduction of sewing
machines in 1851 by the Singer Corporation. Singer embarked
on the journey of establishing itself as a leader in the local
consumer durables industry in 1877 when it started the sale
of home appliances in Sri Lanka, and was incorporated as a
public liability company, Singer (Sri Lanka) PLC, in 1974. The
Company was listed under the Colombo Stock Exchange in
January 1981.
28 5 13 35
Operating Environment
Inputs
Financial Capital
Resources put into the processes
zz Shareholders’ funds
zz Borrowed funds
z z Customer Deposits
Risk Management
Framework
zz Strong Peoples Brand of the country
zz Strong house brands
z z 442 retail network
z z Product portfolio
zz Distribution rights for renowned brands
z z Property, plant and equipment
z z Maintains real time ERP system and
Data base Processes

Regulatory Environment
Governance Framework
z z Suppliers and business partners
z z Awards and accolades
z z Credit ratings
Activities undertaken
Code of Ethics
z z Unique hire purchase system to
provide customer financing for value creation

zz Trading
Employee Capital
zz 2,798 employees zz Financial services
z z Core competencies zz Manufacturing
z z Company unique culture
zz Assembling
z z Great place to work
zz Educational services
Customer Capital
zz Customer base of millions of Sri Lankans
and hire purchase customers
Governance
zz Over one million loyalty card members

Corporate
z z Singer call centre and Facebook fans
z z Reputed after sales service
z z Over 1,080 dealers and distributors
z z 14 Service centres and 384 service
franchise agents

zz Land
zz Water
z z Energy
z z Air
101 161 271 29
REPORTS INFORMATION
Outputs Outcomes
Registrar of
Companies
For Investors zz S tability

Results generated through the processes
Impact of the outputs on the stakeholders

zz Growth zz Dividends and interest
Internal Controls
Board Charters
z z Profits zz Capital gains through share price

Sri Lanka
z z Dividend
appreciation
Singer
z z A loyal shareholder base

Central Bank
z z Growth in market share

of Sri Lanka
Finance
For Employees
Singer
zz A satisfied workforce
zz Remuneration and benefits zz Career development
z z Training and development z z Realised “dreams”
Vision
z z A Great Place to Work z z Work life balance

Central Environmental
z z Ethical practise
zz Reputation and ethical practises
Digital Media
z z Reputation
Singer
Authority
For Suppliers and

zz A market place
Business Partners
zz Access to Singer’s branch network
zz Growth opportunities
Mission
z z An integrated supply chain

zz A market place for their products
z z Undisputed relationship
z z Standards and assurance
certifications
Industires
Singer
z z Long-term relationship and security
For Government Tax revenue

(Fair Trading Commission Act)
zz
Anti-competitve regulations
zz Taxes, duties and levies zz Economic growth

Values
z z Economic opportunities z z Employment

Singer Business
z z Innovation
School
For Customers zz A loyal and satisfied

Quality products and services customer base
Articles of Association
zz
Strategic Imperatives
zz Flexible financing options for purchases z z Choice of products and services
z z Payment of utility bills through z z Affordability

Regnis
Group
branch network z z Enhanced living standards

z z Unmatched after sales services
z z Peace of mind
z z Better return, trust and security on
Colombo Stock
customer deposits
zz Better return for deposit holders
Exchange
For Society and environment zz Community development

zz Community investments zz Environmental consciousness
z z Shared value z z Financial inclusion
z z “Social license” to operate

30 5 13 35
Unique Business Model

Since its inception, Singer has branched out from a single associations and perceptions. These efforts have culminated
product to a wide range of products aimed at satisfying in Singer’s eminent position in the Sri Lankan consumer
modern consumer needs in the area of consumer durables. durables retail market.
This is the result of Singer having developed a unique
business model, one that no competitor has been able to Through over 40 world renowned brands, Singer offers
successfully emulate, be it our culture or processes. customers of any social strata the widest range of products
and services that cater to their lifestyles, tastes, expectations,
The origins of Singer (Sri Lanka) PLC go back to 1877 to a and aspirations. The result is that we deliver unprecedented
small store based in Pettah. Singer (Sri Lanka) PLC’s parent value to our customers, helping them to raise their
company established in parallel Singer Industries (Ceylon) living standards.
PLC and Regnis (Lanka) PLC, while Singer (Sri Lanka)
PLC established the Singer (Sri Lanka) Piliyandala Factory
Singer Omni Channel Presence
between 1963 to 1995, leading to an impressive line of
locally manufactured/assembled items – sewing machines, Singer’s extensive network of distribution channels across
televisions, refrigerators, washing machines, solid and layered Sri Lanka is one of the most comprehensive distribution
furniture, and domestic/agro water pumps. networks in the nation. It is an invaluable asset that few other
corporates can claim to match.
Singer ventured into the field of financial services, initially
offering hire purchase financing to its customers and later From conventional bricks and mortar stores to electronic
establishing a finance company. Singer Finance (Lanka) PLC channels, the distribution network encompasses a variety
offers customers the convenience of settling utility bills from of channels that enable customers to purchase goods in a
any Singer store island wide. More recently, Singer ventured manner most convenient to them. The omni channel strategy
into the e-commerce business via company owned website has allowed us to offer multiple brands and a wide range of
“Singersl.” facilitating for e-commerce online purchase of products and services in tandem with emerging consumer
products from any part of the country or world through Internet tastes and preferences and the rapid pace of development in
access. The Company has seen a lot of success as a result of information and communications technology.
this unique business model encompassing a vast offering of
brands, products, and services, affording unparalleled choice Furthermore, Singer has prioritised the development of
to the customer. e-commerce channels to offer more convenience to
customers. While this addresses the changing preferences
of our customers, it also enables us to realise operational
Strategy and Execution efficiencies from a corporate perspective.
Beyond Singer’s unique business model, its strategy and
its execution are instrumental to defining its success. The
Company has a large and knowledgeable workforce, skilled,
and experts in the fields of retail, manufacturing, and finance.
This workforce is adept at escalating ideas and first-hand
operational information to top management, essential for
formulating strategies and making decisions to meet customer
needs effectively. The business model enables the flow of
information through to key decision-makers in a timely manner,
thus facilitating information to be analysed and utilised in time
to achieve successful results.
Multi-brand Strategy
Singer Sri Lanka has consciously embraced a multi-brand
strategy that leverages the brand equity of Singer. This opens
up multiple segments of Sri Lankan consumers to Singer,
enabling us to target different demographics through a
variety of high quality, market leading, innovative products at
affordable prices and achieving economies of scale through
our wide network of distribution channels. This strategy has
enabled us to strengthen our brand by enhancing customer
101 161 271 31
REPORTS INFORMATION
STAKEHOLDER ENGAGEMENT
Stakeholder Identification Stakeholder Engagement
We identify our stakeholders as individuals or groups who Singer actively seeks to ascertain valuable feedback through
can affect the value creation process of the Company over open dialogue with internal and external stakeholders.
time. These stakeholders may significantly be affected by our Details of how we engage with our stakeholders are provided
business operations, and likewise their actions may have an throughout this Report. Continuing our GRI journey, we are
impact on our ability to achieve our objectives. engaging with our stakeholders this year through our GRI
Standards reporting and CSR programmes. This will help us to
Accordingly, we have identified our primary stakeholders obtain more specific feedback on our approach, which will be
to be our customers, employees, shareholders, suppliers, shared in future reports.
community, and Government authorities. Other key
stakeholders can include bankers, financial institutions,
depositors, assurance services providers and competitors.
Stakeholder Method of engagement Frequency
Customers Advertising and promotions, retail channels, call centre, field programmes, after sales Ongoing
Service, consumer financing
Employees Management and Divisional Meetings, initiatives by HR Division, various Meetings and Ongoing/Daily
Collective Agreements with Unions
Shareholders Annual General Meetings Annually
Quarterly Reports and correspondence Quarterly/
Ongoing
Suppliers Visits, consultations, workshops Ongoing
Community Various projects Ongoing
Government Authorities Timely tax payments, complying with all regulations Ongoing
Through feedback obtained from stakeholder engagement, we have identified the topics that are of concern to our key
stakeholders, which is disclosed in the following section:
Topics and Concerns of Key Stakeholders

Upon identifying our stakeholders, we identify their expectations and concerns and assess them. We have listed their primary
expectations and concerns and our response to them below:
Stakeholder Concern Response
Customers Product availability Singer ensures products are widely available through its
island-wide distribution network.
Enhanced customer service Singer provides an enhanced customer service to its

customers through its knowledgeable and courteous staff and
extensive branch network.
Reliable quality of products Singer provides dealership to many world-renowned brands

with high quality and assures quality of locally assembled
Singer brand products.
After sales service Singer provides island wide after sale service franchise network and
call centre facilities to attend after sales services on urgent basis.
Financing options Singer offers various financing options including hire purchase,
credit terms, and credit card options.
32 5 13 35
Stakeholder Engagement
Stakeholder Concern Response
Employees Increased salaries and wages Singer offers a wide range of financial and non-financial
benefits to employees.
Job satisfaction and motivation All employees of the Group undergo performance appraisals to
facilitate career management, mapping of development paths,
and enhancing their effectiveness and motivation.
Training and continuous career We encourage our employees to pursue career development
development opportunities and continuously support their professional
growth through training and professional development initiatives.
Suppliers Long-term contracts for purchases Singer maintains an effective relationship with suppliers.
Receive prompt payments Singer honours supplier payments on a timely manner.
Shareholders Growth in profits Singer commits to fulfil shareholder concerns and maintains
robust dividend policy.
Dividend growth Singer maintains a stable dividend policy.
Increase in share price Singer experienced above the industry in share prices in the
long-term period.
Government Compliance with rules and regulations Singer adheres to Government’s rules and regulations in
including tax payments conducting its operations and pays due taxes and duties in a
timely manner.
Creation of job opportunities Singer caters direct and indirect job opportunities, island wide
helping Sri Lankan economy and society.
Society Minimising threats to the environment Singer engages in all activities in an environment-friendly
manner and safeguards the interests of the society and
engages heavily in CSR activities.
Creation of job opportunities Singer caters direct and indirect job opportunities.
101 161 271 33
REPORTS INFORMATION
MATERIALITY
Materiality Assessment
We consider an aspect to be material if it substantially affects our Company’s ability to create value over the short, medium, and
long term. This assessment helps us to focus on issues that matter most to us and our stakeholders.
Aspect Indicator Significance Aspect Indicator Significance

To Organisation To Stakeholder To Organisation To Stakeholder
(High/Medium/ (High/Medium/ (High/Medium/ (High/Medium/
Low) Low) Low) Low)
1. Energy 302 High High 20. Marketing and 417 High High
Labelling
2. Biodiversity 304 Medium Medium
21. Diversity and Equal 405 High High
3. Water 303 High Medium
Opportunity
4. Emissions 305 Medium Medium
22. Non-Discrimination 406 High Medium
5. Effluents and Waste 306 High High
23. Child Labour 408 High High
6. Environmental 307 High High
24. Forced or 409 High High
Compliance
Compulsory Labour
7. Employment 401 High High
25. Socioeconomic 419 Medium Medium
8. Freedom of 407 High High Compliance
Association and
26. Anti-Competitive 206 High High
Collective Bargaining
Behaviour
9. Labour/Management 401 High High
Relations
402 High High
10. Occupational Health 403 High High Materiality Matrix

and Safety
11. Training and 404 High High 1, 5, 6, 7, 8,

Education 9, 10, 11, 12,
High
19 14, 15, 16, 17,

12. Procurement 204 High High
Practises 18, 20, 21, 23,
Significance to Stakeholder
24, 26
13. Supplier 308 Medium Medium
Environmental
Assessment
Medium
14. Materials 301 High High 2, 4, 13, 25 3, 22

15. Economic 201 High High
Performance
204 High High
16. Customer Health and 416 High High

Low
Safety
17. Customer Privacy 418 High High
18. Local Communities 413 High High

Low Medium High
19. Public Policy 415 Medium High
Significance to Singer
34 5 13 35
Materiality
Economic Performance
Statement of Value Added – Group
Category Twelve months Fifteen months ended
ended 31st March 2019 31st March 2018
Rs. ’000 % Rs. ’000 %
Group Turnover – Gross 62,752,757 70,302,397
Other Income 338,062 360,258
Less – Cost of Material and Services 46,116,888 48,487,872
Value Added 16,973,931 100 22,174,783 100
Distribution of Value Added to Employees

and Dealers
Salaries, Commissions and Other Benefits 6,114,252 36 7,100,184 32
To Government
Income Taxes, Turnover Taxes, Value Added Tax and 6,854,969 40 10,665,486 48
Other Taxes
To Banks, Deposit Holders and Other Lenders
Interest and Bank Charges on Borrowings and Customer 3,033,076 18 2,531,374 11

Deposits
To Suppliers of Capital
Dividends to Shareholders 244,159 1 826,383 4
Retained for Reinvestment and Future Growth
Depreciation, Amortisation and impairment 600,940 4 670,036 3
Retained Profits 126,535 1 381,321 2
Value Distributed 16,973,931 100 22,174,783 100
Source and Distribution
Sources of Income Distribution of Income
2018/19
2017/18
% 100 80 60 40 20 0 20 40 60 80 100
Value Added Salaries, Commissions Income Taxes, Turnover Taxes, Interest and Bank Charges on
and Other Benefits Value Added Tax and Other Taxes Borrowings and Customer Deposits
Dividends to Shareholders* Depreciation, Amortisation Retained Profits
and impairment
101 161 271 35
REPORTS INFORMATION
MANAGEMENT
DISCUSSION
AND ANALYSIS
THE VALUE SINGER SRI LANKA GENERATES AND
DERIVES BENEFIT FROM CAN BE IDENTIFIED IN
THE FORM OF DIFFERENT CAPITALS WHICH ARE
DISCUSSED IN DETAIL IN OUR MANAGEMENT
DISCUSSION AND ANALYSIS.
36 50 63 69 86
FINANCIAL INSTITUTIONAL CUSTOMER EMPLOYEE SOCIAL AND
CAPITAL CAPITAL CAPITAL CAPITAL ENVIRONMENTAL
CAPITAL
36 5 13 25
SINGER AT SINGER’S BUSINESS
A GLANCE LEADERSHIP MODEL
ANNUAL REPORT 2018/19 Management Discussion and Analysis
FINANCIAL
CAPITAL
The Singer Group recorded a revenue of Rs. 58.5 billion

for the twelve-month period 2018/19, compared to
Rs. 53.1 billion for same period in the prior year
with a growth of 10%.
Financial Review Preface

The following discussion and analysis should be read The Singer Group recorded a revenue of Rs. 58.5 billion for
in conjunction with the Audited Consolidated Financial the twelve-month period 2018/19, compared to Rs. 53.1 billion
Statements of the Group and the Company for the period for same period in the prior year with a growth of 10% whilst
ended 31st March 2019. In this Report, “Group” refers to compared to Rs. 65.1 billion revenue during the fifteen month
Singer (Sri Lanka) PLC and its eight subsidiary companies period of 2017/2018 as appears in the Financial Statements
and “Company” refers to Singer (Sri Lanka) PLC. given on page 176.
Basis of Preparation and Comparative Figures The Singer Group reported operating profit of Rs. 3,997
million for the twelve months period ended 31st March 2019
The Financial Statements have been prepared in accordance compared to Rs. 3,782 million for same period in prior year
with Sri Lankan Accounting Standards (hereafter, referred to with a growth of 5.7% whilst compared to Rs. 4,839 million
as SLFRSs and LKASs) issued by The Institute of Chartered during the fifteen months period of 2017/18 as appears in the
Accountants of Sri Lanka (CA Sri Lanka) and the requirements Financial Statements.
of the Companies Act No. 07 of 2007 and Sri Lanka
Accounting and Auditing Standards Act No. 15 of 1995. The Group encountered multiple challenges including a
prolonged drought and sluggish market conditions which
With the approval of the Registrar of Companies, the
lasted throughout the year. The compressed consumer
reporting period of Singer (Sri Lanka) PLC was changed
disposable income due to high indirect taxes, rupee
from 31st December to 31st March with effect from Financial
devaluation, and political uncertainty during the third quarter of
Year 2017/18 in order to align it with the parent company’s
the financial year and import restrictions led to sluggish overall
reporting period. Therefore, the comparative year information
consumer demand in the economy. Additionally, increased
comprises a period of fifteen months from 1st January 2017
borrowings due to imposition of 100% LC margins, higher
to 31st March 2018. The current year figures comprise as at
impairment costs arising from new accounting standards and
and for the period of twelve months ended 31st March 2019.
new levies on Financial Sector were key contributory factors
Therefore, amounts presented in the Financial Statements are
which resulted in a slow growth potential and profit earnings
not readily comparable.
during the year under review.
Net Turnover Analysis 5% 11% 5% 13%
Consumer Electronics
Financial Services
13% 12%
Furniture
Home Appliances
4% 2018/19 6% 2017/18
IT Products 5% 6%
Sewing
Other
33% 29% 28% 30%
101 161 271 37
REPORTS INFORMATION
Financial Capital
The Company was compelled to increase the prices in (15 months). Included in direct interest cost is interest cost
stage by stage and recover the cost partially due to sharp for customer deposits and interest on debentures at Singer
depreciation of the LKR against the USD and its ripple effect Finance (Lanka) PLC. Customer deposits at Singer Finance
on imports which caused significant pressure on product (Lanka) PLC increased from Rs. 5,238 million to Rs. 5,953
margins and the price revisions were a strain on consumers million and bank borrowings increased over prior year to
who were already affected by the decline in disposable strengthen the balance sheet position and to fund growth in
income. This was a difficult decision but yet necessary to lease receivables and loans.
restore lost margins in the interest of long-term sustainability
of the business. Gross Profit
Gross profit of the Group for the twelve months period reached
Revenue Rs. 16,100 million, compared to Rs. 18,209 million in the
The Singer Sri Lanka Group recorded a revenue of fifteen months period of the previous year. The Group’s gross
Rs. 58.5 billion for the twelve months period compared to margin percentage decreased from 28.0% to 27.5% over the
Rs. 65.1 billion for the fifteen months period of 2017/18 whilst prior year. The gross profit of the Company for the period
revenue of the Company was Rs. 43.6 billion for the twelve under review was Rs. 12,297 million as against Rs. 14,182
months period compared to Rs. 50.9 billion for the fifteen million in the previous year. Gross margin percentage of the
months period of 2017/18. The IT Products segment made Company was 28.2% (12 months) vs 27.9% (15 months).
a commendable contribution to boost revenue with a 33%
contribution while home appliances, consumer electronics Gross margin percentage of both the Group and the Company
and furniture contributed 29%, 11% and 4% respectively. was impacted by lower mix of high margin product lines,
Singer Digital Media (Pvt) Limited specialising in mobile phone especially the significant growth of lower margin products –
sales to the trade channel, contributed Rs. 11.1 billion through mobile phones compared to the negative growth rate of other
revenue from sales to external parties. Singer Finance (Lanka) traditional high margin product lines such as refrigerators,
PLC’s contribution to the revenue was 6.5% amounting to sewing machines and televisions. Discounts to flush out slow
Rs. 3.8 billion. moving inventory and provision for excess and damaged
inventory also contributed to the drop in percentage margins.
Categories that grew in the period were Air conditioners However, there is gradual improvement in margin as a result
by 12%, Computers by 12%, Mobile phones by 6% and of the price adjustments made in selected product categories
Washing Machines by 26%. Some key product lines such as at the later part of the year. In addition, it was increasingly
Refrigerators, Flat panel, Water pumps and Sewing machines challenging to protect the product margins in the competitive
were performed below that of prior year by 3%, 4%, 28% market conditions that the Company faced in the period under
and 10% respectively compared to twelve months period review. The Company was intent in retaining and expanding
of 2017/18. market share with the aim of reaping benefits in the long-term.
Group Net Turnover Operating Profit

The Group recorded operating profit of Rs. 3,997 million for
75,000
the twelve months period ended 31st March 2019 compared
to Rs. 4,839 million for the fifteen months of prior year. The
60,000 Group operating profit margin declined to 6.8% from 7.4% in
2017/18 mainly due to the margin drop in main product lines.
45,000 A modest growth in operational expenditures and decrease
in other income compared to prior year, limited the growth
30,000 in operational margins. Selling and administrative expenses
of the Group for the twelve months period decreased over
15,000 prior year by 11% from Rs. 13,362 million in 2017/18 fifteen
months period to Rs. 11,920 million in twelve months in
0
2018/19 mainly due to the different period of comparisons.
Rs. million 2014 2015 2016 2017/18* 2018/19
As a percentage of revenue, Group administrative and selling
2017/18 – Rs. 65,122 million Rs. 58,505 million expenses decreased from 20.5% to 20.3%; this was driven by
a few concentrated efforts towards cost rationalisation during
*15-months ended 31st March 2018
a challenging period.
Direct Interest Cost Managing costs in a dynamic business environment is

Direct interest cost of the Group was Rs. 1,265 million at the a challenge since the Management needs to maintain a
end of twelve months, against Rs. 1,281 million in 2017/18 balanced approach on maintaining operational efficiency as
38 5 13 25
Financial Capital
well as catering to the growth of business prospects. Both

Profit before Tax
the Group and the Company carefully managed costs without
sacrificing business expansion and opportunities.
3,500
The Group’s as well as the Company’s results were adversely
impacted due to the significant increase of impairment losses 2,800
on trade and hire purchase receivables consequent to the

2,100
implementation of SLFRS 9 with effect from 1st April 2018.
Primarily due to differences in impairment methodology under
1,400
SLFRS 9 that requires impairment allowances to be based
on forward looking expected credit loss model compared
700
to LKAS 39 where the impairment allowance was made on
incurred loss method, the Group’s impairment loss on trade 0
receivables for the twelve months period increased by 42% Rs. million 2014 2015 2016 2017/18* 2018/19
to Rs. 521 million compared to Rs. 368 million in fifteen
months in 2017/18 while Company’s impairment loss on trade 2017/18 – Rs. 2,049 million Rs. 672 million
receivables increased by 55% to Rs. 213 million from Rs.137 *15-months ended 31st March 2018
million in prior year fifteen months period.
Net Finance Cost
In addition, the cumulative impact of impairment allowance
as at 1st April 2018 arising from the change in methodology The 26% increase in the Group’s total borrowings together with
from LKAS 39 to SLFRS 9 (day 1 impact) and the deferred the relatively high cost of funds in the economy, additional
tax impact thereon amounting to Rs. 284 million was borrowings and foregoing supplier credit due to 100% LC
charged against the retained earnings as at 1st April 2018. margin compelled us to obtain additional borrowings. Further
to that net exchange loss of Rs. 186 million due to rupee
Consequently, cumulative impairment allowance for Trade
devaluation resulted in the increase of net finance cost by
Receivable increased to Rs. 1,423 million as at 31 March 2019
20% to Rs. 3,033 million for the twelve months period ended
(under SLFRS 9) compared to Rs. 653 million as at 31st March
31st March 2019 from Rs. 2,531 million in fifteen months
2018 (under LKAS 39).
period ended 31st March 2018.
Earnings Before Interest, Tax, Depreciation and Similarly, the Company’s net finance costs increased by
Amortisation (EBITDA) 8% to Rs. 2,321million for the twelve months period ended
The Group’s EBITDA for twelve months period ended 31st March 2019 from Rs. 2,150 million in fifteen months
31st March 2019 was Rs. 4,473 million compared to period of 2017/18.
Rs. 5,380 million for the fifteen months of prior year. Whilst
Finance income of the Group increased from Rs. 176 million to
Group EBITDA margin was 7.6% vs 8.3% in prior period.
Rs. 208 million. At the Company level, finance income increased
from Rs. 345 million to Rs. 454 million due to increase in interest
Operating Profit income from Subsidiary Companies, Singer Finance (Lanka)
PLC and Singer Digital Media (Pvt) Limited on their borrowings
5,000
from the Parent Company, Singer (Sri Lanka) PLC and interest
income for debenture investment in Singer Finance (Lanka)
4,000 PLC. However, these incomes are offset in the Consolidated
Financial Statements. Despite the said challenges, the strong
3,000 business position and the credit rating enable the Company to
borrow at relatively competitive interest rates from the banks.
2,000
Income Tax
1,000 The Group’s total tax expense for the period under review
decreased to Rs. 286 million from Rs. 829 million in the
0
fifteen months period as a result of the decrease in taxable
Rs. million 2014 2015 2016 2017/18* 2018/19
profits and reversal of deferred tax expenses during the
2017/18 – Rs. 4,839 million Rs. 3,997 million current period due to the increase of origination of timing
differences. Tax on dividend income for the twelve months
ended 31st March 2019 was Rs. 70 million compared to the
Rs. 112 million in the prior year, this amount was incurred for
the interim dividends received from subsidiary companies
during 2018/19.
101 161 271 39
REPORTS INFORMATION
Financial Capital
Total Comprehensive Income for the Period

Taxation
The Group recorded a total comprehensive income of
Rs. 1,006 million after tax for the twelve months period
1,000 50 against Rs. 692 million for fifteen months period, which was
above prior year by Rs. 314 million. Singer (Sri Lanka) PLC’s
800 40
total comprehensive income for the period under review
was Rs. 448 million vs Rs. 794 million in the fifteen months
600 30
period of 2017/18, a decrease of Rs. 346 million. Group’s
Total Comprehensive Income for the twelve months period
400 20
increased over prior year mainly due to the revaluation gain
200 10
from property, plant and equipment.
Earnings per Share

0 0
Rs. million 2014 2015 2016 2017/18* 2018/19 % Group Earnings per Share (EPS) for the twelve months period
under review was Rs. 0.67 vs. Rs. 2.78 during fifteen months
Net Tax Expenses** (Rs. million) Net Effective Tax Rate (%)
period in 2017/18. Earnings per share of the Company were
**Net Tax expenses include Income Tax, VAT on ECC, Deferred Tax and WHT on Dividend.
Rs. 0.37 vs. Rs. 2.66 in year 2017/18.
Earnings per Share
Profit for the Period
The Group recorded a profit for the twelve months of 6.25
Rs. 386 million while the profit for the fifteen months period
of 2017/18 was Rs. 1,220 million. 5.00
3.75
Singer (Sri Lanka) PLC’s profit for the twelve months period
was Rs. 141 million vs. Rs. 999 million for the fifteen months
2.50
period of previous year. Both Group and Company profitability
were impacted by the lower margins mainly due to the
1.25
sluggish market conditions, higher interest and high exchange
losses following rupee depreciation and import restrictions and 0
significant provisions for impairment losses on trade and hire Rs. 2014 2015 2016 2017/18* 2018/19
purchase receivables as a result of changing methodology
from LKAS 39 to SLFRS 9. 2017/18 – Rs. 2.78 Rs. 0.67
In the Group, profit attributable to owners of the Company
was Rs. 250 million vs Rs. 1,044 million in 2017/18. Profit Dividend
attributable to non-controlling interest was Rs. 136 million Company paid an interim dividend of Rs. 0.65 per share
vs. Rs. 177 million in 2017/18. amounting to Rs. 244 million during the financial period ended
31st March 2019.
Profit after Tax Dividend per Share
2,500 3.00
2,000 2.40
1,500 1.80
1,000 1.20
500 0.60
0 0
Rs. million 2014 2015 2016 2017/18* 2018/19 Rs. 2014 2015 2016 2017/18* 2018/19
2017/18 – Rs. 1,220 million Rs. 386 million 2017/18 – Rs. 2.20 Rs. 0.65
*15-months ended 31st March 2018 *15-months ended 31st March 2018
40 5 13 25
Financial Capital
The Group recorded a total comprehensive income of

Rs. 1,006 million after tax for the twelve months period
against Rs. 692 million for fifteen months period,
which was above prior year by Rs. 314 million.
Return on Equity
Dividends Payout Ratio
Return on Group equity for the twelve months period under
review was 4.6%, whilst in the fifteen months period it was
200
13.8%. Return on equity of the Company was 3.0%, compared
to 18.6% in 2017/18. Return on equity has been computed by
160
dividing the profit for the period by the average of total equity
as at the beginning and the end of each financial year.
120
80 Return on Equity
40
30.00
0
24.00
% 2014 2015 2016 2017/18* 2018/19
2017/18 – 83% 174% 18.00
*15-months ended 31st March 2018 12.00
Dividends Paid 6.00
0
1,250 % 2014 2015 2016 2017/18* 2018/19
1,000 2017/18 – 13.76% 4.64%

750
500 Total Assets

Asset growth was mainly due to the capacity expansion in
250
the manufacturing sector, revaluation of property, plant and
equipment and increase in inventories. The Group total assets
0
Rs. million 2014 2015 2016 2017/18* 2018/19
increased by 15% to Rs. 58.0 billion compared to 31st March
2018 with non-current and current assets growing by 22% and
2017/18 – 826 million 244 million 12% respectively. Group total assets base comprised 39%
of non-current assets (2017/18 – 30%) and 61% of current
assets (2017/18 – 70%). The growth of non-current assets
was due to the revaluation and additions made into property,
Solvency plant and equipment, mainly in Singer Finance (Lanka) PLC
Section 56 of the Companies Act No. 07 of 2007 requires and the manufacturing segment. Increase in operational
that a solvency test be carried out prior to the payment of activities accounts for the growth of working capital mainly in
dividends. The Board of Directors obtained a Certificate of the Company, Singer Finance (Lanka) PLC and Singer Digital
Solvency from the Auditors, prior to the date of dispatch of Media (Pvt) Limited.
the interim dividends paid.
101 161 271 41
REPORTS INFORMATION
Financial Capital
Financial Position Structure Total Liabilities

Total liabilities of the Group represented 28% (17% in 2017/18)
100 of long-term liabilities and 72% (83% in 2017/18) of current
liabilities. Long-term liabilities of the Group has increased
80
by Rs. 6,862 million to Rs. 14,181 million. This increase was
mainly attributable to the increase in long-term interest bearing
60
loans and borrowings by three times over the prior year and
40
increase of deferred tax liability due to the revaluation of
property, plant and equipment. Group and Company current
20 liabilities have decreased compared to prior year due to the
forgone supplier credit followed by the restrictions imposed
0 on shipping margins and the shifting of short-term debt to
% 2017/18 2018/19 2017/18 2018/19 long-term debt of both the Company and the Group during
Assets Liabilities the current year.
Assets Liabilities
PPE Shareholders’ Funds Total Equity
Investments Long-Term Borrowings
Inventories Short-Term Borrowings Total assets base was funded by 15% of Group equity
Receivables Trade Creditors including non-controlling interest, decreased by Rs. 3% over
Other Liabilities
Cash and Others 2017/18 to stand at Rs. 8,452 million as at 31st March 2019.
The change over prior year was mainly due to the increase
in surplus on revaluation of Rs. 636 million (net of tax), and
Growth in Property, Plant and Equipment Rs. 386 million net profit which was offset by the adjustments
made for the retained earnings of Rs. 472 million due to the
7,500 adoption of IFRS 9 and IFRS 15 and the payment of interim
dividend of Rs. 244 million.
6,000
4,500
Capital Structure
3,000
100
1,500
80
0
60
Rs. million 2014 2015 2016 2017/18 2018/19
40
2017/18 – Rs. 5,649 million Rs. 6,705 million
20
Net Assets per Share 0

% 2014 2015 2016 2017/18 2018/19
25.00
2017/18
Shareholders’ equity 21% Shareholders’ equity 18%
20.00
Total borrowings 79% Total borrowings 82%
15.00 Total borrowings Shareholders’ equity
10.00
5.00
0
Rs. 2014 2015 2016 2017/18 2018/19
2017/18 – Rs. 18.20 Rs. 18.48

42 5 13 25
Financial Capital
operational risk into consideration. Singer Finance is well

Net Assets per Share Vs. Market Price per Share
above the minimum Core Capital requirement and maintains
adequate Capital Adequacy above the minimum required
25 50 by CBSL. The regulator also took measures to control credit
by imposing stringent loan to value ratios resulting in major
20 40 challenges to expand credit.
15 30
After a considerable period of time, weather gods were kind
by providing adequate water, resulting in bumper harvests
10 20
being recorded throughout the country in latter part of year
2018. This was a silver lining on a year which had so many
5 10
negatives. However, the country faced an unexpected calamity
0 0
with terrorist attacks by an extremist group on 21st April 2019.
Rs. 2014 2015 2016 2017/18 2018/19 Rs. The impact of this attack was severe and perhaps the most
sever in this decade. The country needs to recover fast from
2017/18
this setback, we are hopeful of the capability and resilience
Net Assets per Share Rs. 18.20 Net Assets per Share Rs. 18.48
Market Price per Share Rs. 40.20 Market Price per Share Rs. 25.00
of Sri Lankans to bounce back from calamities as proven
throughout our history.
Net Assets per Share (LHS) Market Price per Share (RHS)
As SLFRS 9 took effect, the company had to book the day one
adjustment amounting to Rs.109 million in the equity statement
Cash Flow and a further Rs. 35 million adjustment to the income
Group net operating cash outflow was Rs. 6,444 million, statement in the year under review. The Management has
compared to Rs. 4,688 million in prior period. This is taken steps to re-align their credit and recoveries processes
attributable to the high working capital requirements and with the IFRS model to reduce the effect on impairment based
relatively high interest payments. Net cash flow from investing on SLFRS 9. Further, the financial services sector was affected
activities of the Group decreased over prior year by Rs. 570 by the Debt Recovery Levy imposed by the Government in
million. Proceeds from new borrowings and customer deposits October 2018, the impact to the Company from this levy was
resulted in a net inflow from financing activities amounting to Rs. 48 million from October 2018 to March 2019.
Rs. 6,570 million from Rs. 4,525 million in prior period.
Singer Finance has not been overly dependent on funds from
Overview of Performance of Subsidiaries the fixed deposit market in the past, however, with new growth
plans, an area that Company has focused is to increase its
Singer Finance (Lanka) PLC
Deposit base in order to fund the growth of the Company.
Singer Finance (Lanka) PLC is an subsidiary of Singer The Company has already done the changes required to
(Sri Lanka) PLC with an ownership of 79.93%. Incorporated boost the Deposit base, and has already shown results by
in April 2004, the Company is a licensed finance company increasing its fixed deposit base by 13% over last year.
registered with the Central Bank of Sri Lanka. Singer Finance
has grown its portfolio steadily over the years, ensuring that The Company performed reasonably well despite the
its income earning receivable portfolio is among the top economic outlook not being the most favourable. Total
finance companies. The standalone rating of BBB with a assets of Singer Finance grew by 21.1% to Rs. 19.5 billion,
positive outlook by Fitch Ratings signifies the credit quality YoY to 31st March 2019. With income earning assets
of the Company. growing by 24.2% YoY. 91% of the Company’s total assets
are income earning, illustrating how the Company has
Macroeconomic conditions play a pivotal role in the finance maintained its status quo of sticking to the bread and butter
business. In the year under review, macroeconomic of its core business. Total equity of the Company grew by
conditions were not as conducive for business due to 6.3% to Rs. 3.5 billion. The Company declared a dividend
multiple reasons such as increase in tax rates for Motor of 1.10 cents in March 2019. Total revenue grew by 26.4%
Vehicles, fluctuating liquidity positions in the market, rupee to Rs. 4.1 billion in the year under review. The profit after
depreciating significantly, and rise in interest rates. This was tax of Rs. 541 million grew by 22.2% in comparison to the
further aggravated by political instability and a new tax levy corresponding year. The increase in provisioning for bad debts
imposed directly on the financial sector. Central Bank of and the increase in interest costs were two major inhibiting
Sri Lanka (CBSL) directions on NBFI’s were further stretched, expense categories that prevented a more stellar bottom line
as they were required to maintain a minimum Core Capital of growth during the period under review.
Rs. 2 billion by 1st January 2019, a more stringent method
of calculating Capital Adequacy was introduced by taking
101 161 271 43
REPORTS INFORMATION
Financial Capital
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44 5 13 25
Financial Capital
With two very strong Parent Companies; Singer

(Sri Lanka) PLC and Hayleys PLC on top, Singer
Finance is well poised to position itself to a significant
place in the business of financing in the years ahead.
Over the years, Singer Finance was conservative in their received from our Parent Company, Singer (Sri Lanka) PLC
growth plans. However, this notion has changed after the based on data analysis using artificial intelligence and other
parent company was acquired by the Hayleys Group; the methods helped us to identify customer requirements, their
company drew plans to grow more aggressively. As a result, expectations and new market trends better.
the company expanded its presence by opening 4 new
branches and relocating 3 window operations. Further, the Products
Company increased their field staff of existing locations in
Since its inception, the Regnis Group has consistently brought
order to support the growth of the existing business. The
Singer offers a Company also introduced Gold loans at the end of the
innovative solutions to the market, both in the refrigerator and
washing machine lines. In 2018, Regnis introduced a smart
previous financial year to its portfolio and will be focused
wide range of on rolling out this product to the existing branch network in
refrigerator with an inbuilt power guard and many other new
features like energy saving depending on the load in it and
2019/20. A debit card will be launched mid-year with plans
smartphones to to grow the savings product.
the number of times its door is opened. Two new 260 and
300 Litre. capacity refrigerators with higher energy efficiency
instantly connect The new ownership has rightfully given directions for Singer
were also introduced to cater to different market segments. In
addition, Regnis Appliances introduced three bright coloured
you to those that Finance to grow to its true potential and the Management has
embarked on this journey with confidence. The Management
new fully automatic, memory function PCB washing machine
models with transparent top cover.
matter most to remains optimistic and confident of the future plans for growth.
With two very strong Parent Companies; Singer (Sri Lanka)
Group’s product range now comprises 27 refrigerator models
you in today’s PLC and Hayleys PLC on top, Singer Finance is well poised to
position itself to a significant place in the business of financing
and 13 washing machine models.
fast-paced world. in the years ahead.

. Financial Highlights for the Year Ended 31st March 2019
Regnis (Lanka) PLC – Group The Regnis Group operated in a not so conducive operating
environment during the year. Sharp depreciation of the
The Regnis Lanka PLC Group comprises the Company and
Sri Lankan Rupee had a substantial impact on cost of
its fully-owned Subsidiary Regnis Appliances (Pvt) Ltd. which
imported materials. With Government tariff changes, Regnis
is engaged in the manufacture of washing machines, plastic
had to keep 100% cash margins on import of washing
chairs and plastic components for refrigerators.
machines and certain raw materials used for refrigerator
manufacturing. In line with the new tariff policy Government
Regnis is Sri Lanka’s leading manufacturer of white
removed 15% cess on refrigerator imports, thereby reducing
goods and the undisputed leader among the refrigerator
the gap between locally manufactured and imported
and washing machine manufacturers. The goods are
refrigerators. Competitive landscape limited the extent up to
manufactured under Singer and SISIL brands and distributed
which prices could be passed on. As a result, Regnis Group
to customers through Singer’s extensive distribution
reported only a marginal growth in revenue to Rs. 5.4 Billion
network. Despite intensifying competitive pressure, Regnis
for the year.
continued to sustain its dominant market position by
understanding and effectively responding to emerging
Despite a number of initiatives to gain cost efficiencies and
customer needs through innovative product solutions.
enhance employee productivity such as waste minimisation,
Regnis’s excellent track record over the past three decades
enhancing production lines, improving quality to minimise
has armed it with deep insights into customer behaviour
warranty costs and reducing inventory holding period, cost of
and allowed it to persistently refine its operating model
sales increased due to the increase in cost of materials. This
to capture emerging opportunities. In addition, insights
coupled with an increase in net financing cost, partly set off by
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Financial Capital
a decrease in selling and distribution expenses caused a drop Digital Media Channel is ready to accept challenges while
in profit before tax to Rs. 82 million for the year compared to following market best practices. Demarcation of regions in two
Rs. 123 million reported for 2017/18. Profit after tax amounted areas North and South under the supervision of two Assistant
to Rs. 63 million compared to Rs. 89 million. Area Managers and 6 Territory Managers, establishing 11
brand shops in urban areas island wide i.e., Maharagama,
Future Outlook Liberty Plaza, Anuradhapura, Jaffna etc., appointment
of direct dealers, managing field credit exposure, usage
Despite the impact of headwinds caused by volatile external
of management information system to access real time
sector developments, Government fiscal policy decisions and
information for better management of operations and planning
recent terrorism related incidents on the economic growth of
assisted the remarkable performance in 2018/19.
the country and the disposable incomes of Sri Lankans, we
envisage the demand for consumer durables to sustain, in
Among the key pillars of success is the Distributor network
particular among the middle class. This is because consumers
associated with the channel since the commencement of the
are likely to continue to move to technologically advanced
business. We ensured and believed in win-win situation where
products to upgrade their living standards and realise cost
it was our pleasure to witness Distributors, pull together the
savings. Hence, the Company will continue to invest in
benefits of the collaboration with Singer.
product development and capacity extensions to deliver on
customer expectations and secure operational efficiencies.
Taking hold of the opportunities available for maximum
potential was successfully proven by the Corporate Team of
Singer Industries (Ceylon) PLC Digital Media Company. The Corporate Team partnered with
The company’s product range consists of the traditional Telecommunication giants in the country and has placed
product line of straight stitch and zig-zag sewing machines its presence deeply in the corporate sector to offer device
together with a new portfolio of portable and digital solutions to many corporate projects. Year 2018/19 was
sewing machines, washing machine components and air significant, Corporate team achieved the annual sales of
conditioning brackets. Rs. 1.5 billion with much commitment and hard work.
The sewing machines are manufactured and marketed solely None of the achievements would have been a reality if not for
to our parent, Singer (Sri Lanka) PLC. Furthermore, washing the team spirit, commitment, loyalty towards the Company and
machine components are manufactured as a subcontract business by the Team Digital Media. Digital Media Company
operation to our affiliated Company – Regnis Appliances (Pvt) is truly a “Team work” by example. Team attributes are visible.
Ltd. During the financial year, the Company started supplying Motivation is spread across the channel for the ultimate
air conditioning brackets to its Parent Company, Singer achievement regardless of the competitiveness.
(Sri Lanka) PLC.
Singer Business School (Pvt) Ltd.
Singer Digital Media (Private) Limited Established in 2015, Singer Business School is the education
Singer, the leader in Sri Lanka’s consumer electronics and arm of Singer (Sri Lanka) PLC and aims to provide world-class
other white good market introduced Digital Media products education to Sri Lankan youth at affordable prices across the
to its product portfolio with the objective of serving our island. Coupled with a rich heritage and a wide reach, Singer
customers in line with dynamic market trends. Digital Media Business School reaches its students through 62 Fashion
(Private) Limited which embarked on its journey in 2012 with Academies and eight Computer Academies.
world renowned mobile phone brand Huawei, that placed their
trust and confidence to partner with Singer for their Operation Singer Business School recorded a revenue of Rs. 63 million
in Sri Lanka, achieved the majority of market share which was for the year compared to Rs. 46 million, for the previous year,
over 40% according to GFK Reports. a significant 39% growth.
The Management together with a dedicated sales force who New Fashion Designing Programme
worked with much commitment and responsibility contributed
Highlights of the year included introduction of a new
to this success story. The dedication of the team towards the
programme on Fashion Designing consisting of a six months
channel was paid off with a record sale of Rs. 11.4 billion for
certificate level foundation course, a one year diploma and
the calendar year, making Digital Media the 2nd distribution
a final one year Advanced Diploma, with an exit path at each
arm to surpass Rs. 10 Billion annual sales in the history of
level. Part one will be offered in all 62 locations while the
Singer Group. Growth of the channel is 28% compared to the
Diploma and the Advanced Diploma levels will be offered in
performance in 2017/18.
Colombo. The certificate programme has been validated by
the Chartered Society of Designers (UK) and the Diploma and
the Advanced Diploma programs will be recognised by them
once the programs commence.
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Financial Capital
The in-depth curriculum for each stage has been especially Overview of Performance of Distribution Channels
curated, taking into account international and industry Singer’s extensive network of distribution channels across
standards. With the syllabus up to the Advanced Diploma Sri Lanka is an invaluable asset that few other corporates
stage being equivalent to the first two years of learning in can match. Encompassing a variety of channels, the network
a university programme under the UK curriculum, upon ranges from conventional brick and mortar stores to electronic
completion of it, students can join a university of their choice channels, empowering customers with the choice and
and complete the final year to graduate with a Degree in flexibility to purchase goods in a way most convenient to them.
Fashion Designing. The entire programme therefore affords
a competitive advantage over other available courses and is This section will cover the different channels we operate and
extremely affordable with easy monthly instalment payments. their performance during the year. We deliver unparalleled
customer convenience through these channels, thus enabling
Course Validation by Chartered Society of Designers (UK) customers to raise their standard of living.
Helping local students studying fashion to embark on a
successful international career, the Singer Fashion Academy Singer Plus
recently became the first Sri Lankan institute to receive Singer Plus is the main distribution channel of Singer
validation for six of its courses from the Chartered Society (Sri Lanka) PLC.
of Designers (CSD), UK within its Course Endorsement
Programme (CEP). Singer Fashion Academy students who The Channel contributed nearly 45 % of the overall revenue
follow a CSD Validated Course can easily apply for Student of the Company and also a high percentage of hire
Membership status from the Society with no application purchase sales. Significant growth was shown from the
or joining fee applicable and they will also enjoy clear mobile phones with the expansion of Digital Corners in
progression to other membership levels offered. Singer Plus outlets supported by the increase in market
demand for smart phones. Further thrust product categories
Annual Fashion Show and Awards Ceremony such as washing Machines, Freezers & Coolers and Kitchen
Giving the Diploma students an opportunity to showcase Appliances showed good growth.
their creative work with a sense of confidence via a cat walk
to a larger audience and also allowing them to forge for Singer Plus retail channel continued to expand its retail
themselves a platform that will pave way for a wider range space by adding new showrooms, upgrading and shop
of business opportunities, Singer Fashion Show and Awards space enhancements in 2018/19. Singer Plus presence
Ceremony 2018 was held at the Bishops College Auditorium is felt in every nook and corner of the country with 271
on 11th September 2018. Showrooms and 58 Satellite Shops. In the year under
review, the channel added four new showrooms and
Annual Diploma Examination upgraded eight satellite shops to Singer Plus retail stores.
Channel worked on continuous development by focusing
Annual Diploma Examination was held from 12th to on improved merchandising and displays, overall shop
16th November 2018 at Havelock City Club House. The exam administration, staff training and development, to serve our
was for those who were completing the Diploma in Scientific customers better.
Dressmaking and Diploma in Machine Embroidery. Total of 80
students sat for the exam this year. Singer Plus channel carries out innovative sales promotional
activities and field programmes. The channel uses group
The Singer Fashion Academy offers over 20 different sewing sales to institutions and many outdoor selling activities
courses, which include 3 diploma programmes, 8 certificate to reach their customers. Singer Plus channel was able
courses, and several other sewing courses to anyone who is to successfully conduct life style exhibitions in Colombo,
passionate about sewing. In the period ended, approximately Galle, Bandarawela, Kandy and Jaffna during the year,
80 students completed 2 diploma programmes and the demonstrating the strength of Singer’s multi brand – multi
current student base increased to 6,000 students. product offering to the consumers. Singer Plus channel
is promoted as the most convenient place to shop for all
consumer durable products through ATL and BTL medium
to attract customers.
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Financial Capital
Singer Mega – The Big Experience Singer Mega focused on offering high quality customer service
All Singer Mega showrooms continued with various throughout the year and initiated a number of customer
promotions, events and activations in order to showcase our engagement programmes for our existing customers and to
Product, Brand and Service strengths. One new showroom attract new customers. This helped us to increase sales even
were added in 2018/2019 in order to extend our services to under the tough market conditions that prevailed.
our valued consumers and increase our reach.
Singer Homes – The Furniture Store
Singer Homes focused on improving the lifestyle of our
consumers by introducing a variety of new Furniture
and Accessories. Each Singer Homes showroom carried out
targeted customer engagement programmes island wide in
order to take the “Singer Homes” brand to our consumers
and promote all our seasonal offers. This helped us generate
additional sales under tough market conditions.
SISIL
The SISIL World continued to consolidate its position as a
premier consumer durables retailer during the year. Its retail
space was expanded with the addition of new showrooms and
shop space enhancements. The SISIL channel added three
new showrooms at Moratuwa, Galewela and Hingurakgoda
and shop space enhanced at Gampola and Chilaw during
the period under review.
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Financial Capital
Development of the SISIL channel continues with a focus J Plus Channel

especially on overall shop administrations and staff training Similar to the Wholesale Channel, the J Plus Channel was
and development with the goal of serving our customers formed to cater to dealers who serve the lower end of the
better. Furniture, air conditioners, mobile phones, bottle market. This Channel focuses on sales around brands like
coolers, gas range and washing machines in particular have Sony, Hitachi, Sharp and Dell as well as Singer’s furniture and
generated positive growth compared to last year. mattress products.
The SISIL channel reaches customers through field promotions J Plus enabled Singer to expand its presence in wholesale
and focusing more on BTL activities and group and bulk sales. market segments that were not previously catered to. The
Channel handles:
Wholesale Channel
1. The sale of furniture to wholesale dealers, including
The Singer Wholesale Dealer network was established in specialised furniture dealers.
the latter part of 1986, to serve wholesale dealers in an
2. The sale of computers to wholesale dealers, including
organised manner as many of the dealers had to buy their
specialised computer dealers.
products via the Pettah market and Singer stepping in has
helped the dealers and at the same time our Wholesale
Dealers have helped the Company to strengthen its brand Institutional Channel
name in the market. From a mere handful of dealers at The Institutional Sales Channel caters to bulk orders from
the time of its inception, this dealer network has grown B2B clients, including hotels, hospitals, and Government and
over the past 33 years and there are 400 dealers within this private sector organisations. During the year under review, the
network today. Channel tied up with four corporate giants in Sri Lanka such as
Fonterra and Cargills.
The main question posed by the dealers at that time was
whether Singer would give them the opportunity to sell Agro Channel
Singer sewing machines and it was a trump card which The Agro business which was re-launched in 2013 in
helped to move out other products such as white goods Singer Group consists of a number of new machinery
along with the sewing machines and that was one of the and equipment that made the channel expand its product
main objectives of the corporate company because Singer portfolio as at today. The Channel was initiated with the
retail channel was in good control of the sewing machine name ‘’Special Project Channel’’ and was re-launched as
sales at that time. By establishing contacts with the Agro Channel with the new entrants of machinery items
wholesale dealers, we learnt that the dealers themselves to the Channel. Starting from water pumps, the business
had a separate clientele who were serviced by the dealers has now expanded to a vast range of products like;
and who did not come to Singer shops, and it provided a water pumps, two wheel tractors, combine harvesters,
good opportunity for the Company to serve that clientele wood working machines, bush cutters, motorbikes,
and add them to our customer base. paddy threshers, scales, bicycles, fans, irons, kitchen
appliances etc. In the latter part of 2018 and early 2019,
Being very careful in establishing new channels, new product we gave enough ammunition to sales people in the field to
ranges, etc., Singer developed this channel by maintaining counteract the competition by introducing low cost water
strict controls on administrative areas which many of our pumps, plastic impeller tube well pumps, low cost bush
dealers appreciated that Singer services all types of dealers cutters to the field which were a timely requirement laid by
whether big or small in the same manner where pricing and the sales team in mid 2018. These new introductions further
promotions are of critical importance. strengthened the range of products in the Channel.
Since the establishment of the dealer network, Singer has Various field activities have helped the Channel to expand
continued to strengthen and support the dealers and their its popularity among remote villages of which the Channel is
shop assistants by sharing technology and know-how via proud of its contribution made as a Channel to bring Singer
training programmes, refrigerator and sewing machine clinics the crown of “Best People’s Brand” for the 13th consecutive
to service their clientele and providing technical support year. Plumber training programmes, tractor free service
wherever necessary. The Dealer Assistants’ Day is a much campaigns, wood working trainings, dealer assistant trainings
looked forward to event by all and the annual Wholesale etc., are a few, out of those services extended to the public.
Dealer Convention are some of the events which are
organised by the Company to reward their efforts and support
to the Company.
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Financial Capital
e-Commerce Channel – www.singer.lk Singer hosts multiple online competitions around the year
The Singer Sri Lanka e-Commerce platform experienced using our multiple brands to engage fans and customers.
exponential growth in the period under review. Singer Sri Lanka Competitions during the period included the Singer Super
e-Commerce aims to be the No. 1 consumer durables website Chef Competition Season 2, Singer Homes Furniture
in Sri Lanka. Featuring more payment methods and platforms, Competition, Singer All I Want for Christmas Competition, and
Singer will offer quality products to customers with value Upgrade your Kitchen with Singer. Through our Facebook
added discounts and offers. page, we carried out “Special Hot Deals” and “48-hour Flash
Deal” promotions that reached a wide audience. Events
The Information & Technology Department continued to including product launches and the Singer Lifestyle Exhibition
enhance the customer experience. The Singer (Sri Lanka) were covered through updates and live video streams.
PLC website was revamped with a creative and user-
friendly interface that appeals to customers, who are With the aim of building an audience and directing them to
becoming increasingly tech savvy. The website now features our website, these digital activities allowed us to target our
conveniences such as cash on delivery, online reservation audience based on their interests and personal preferences.
system through shops, up to 52 monthly interest-free Through the Google advertising platforms, we were able to
instalment plans, and special seasonal product promotions. create a campaign which continuously allowed the audience
to engage with our website even after making a purchase or
As a leading household name for home appliances and leaving the website. Dynamic re-marketing efforts focused on
consumer durables, Singer has harnessed its energies to customers who have visited or shown interest in our products
develop unique and innovative approaches to reach out to the but not made a purchase – a method that has proven to be
target market via Digital Marketing. effective with the digital consumer.
The Singer Sri Lanka Facebook page aims to explore new

opportunities for product promotions and real time association
with existing and potential customers by engaging with
them via activities such as competitions, posts, product
launches, and events.
To maximise our online brand presence and generate sales

through e-commerce, we have commenced digital activities.
Main campaigns include Facebook advertising & Google
Ad Words campaigns, search engine campaigns, display
marketing and dynamic re-marketing campaigns. We also
started using YouTube to raise product and brand awareness
through pre-roll advertisements of brands available at Singer,
new products, and recipe and quick tips videos that use
kitchen appliances available at Singer.
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INSTITUTIONAL
CAPITAL
Singer brand has been spearheading as the

undisputed leader in the consumer durables
market in Sri Lanka.
Since its inception, Singer has amassed institutional capital the majority of the market share at over 40%, according to GFK
that it leverages to benefit all stakeholders. As Sri Lanka’s reports. Since the introduction of Huawei to the local market
leading consumer durables retailer, Singer is responsible for in 2012, Singer was appointed as the exclusive national
the distribution of local and globally renowned brands through distributor for Huawei-branded mobile phones in both retail
one of the most comprehensive branch and distribution and wholesale, contributing to the increase in brand loyalty
networks in the country. throughout Sri Lanka.
2018/19 saw significant market share growth for Huawei through

Overview of Brands
the expansion of the distribution network, disrupting array
Singer (Sri Lanka) PLC handles the distribution of its of products, novel additions to the existing brand portfolio,
own Singer, SISIL and Regnis brands, as well as leading enhanced consumer service, and innovative promotional offers
international brands through its distribution channels. and activities together with Singer (Sri Lanka) PLC.
Singer: Trusted Excellence Sony: Be Moved

Singer brand has been spearheading as the undisputed leader Sony Corporation is a leading manufacturer of audio,
in the consumer durables market in Sri Lanka. Singer brand video, game, communications, key device, and information
extends a wide range of product categories such as sewing technology products for the consumer and professional
machines, consumer electronics, household appliances, markets. With its music, film, computer entertainment, and
air conditioners, furniture, kitchen appliances, personal online businesses, Sony is uniquely positioned to be the
computers and agricultural equipments. Our uncompromised leading electronics and entertainment company in the world.
commitment in providing excellent pre-sales and after sales
service to our consumers scattered all over the Country has Singer was appointed to be the distributor for Sony Electronics
enabled Singer to live up to its brand promise of “Trusted in Sri Lanka. Since December 2014, we are the retail distributor
Excellence” year after year with continuous improvement. of a wide range of Sony products including LED TVs, smart
TVs, 4K TVs, high-tech audio systems, cameras, and other
SISIL: The Cooling Specialist electronic products.
SISIL was established 56 years ago as the first refrigerator
brand to be manufactured in Sri Lanka and holds a dominant Dell: Power to Do More
marker share in the refrigerator, kitchen appliance, and Dell empowers countries, communities, customers, and
washing machine segments. Singer purchased the SISIL people everywhere to use technology to realise their dreams.
brand in year 2000 and leveraged the strength of this Customers trust Dell to deliver technology solutions that help
brand. SISIL is also renowned for service excellence and them to do and achieve more, whether they are at home, work,
durability, outperforming many global brands in terms of school, or anywhere in the world.
trust and reliability.
Partnering with Dell in 2014, Singer has demonstrated a rapid
Huawei: Make it Possible growth in Dell sales resulting in an increased market share
Huawei is the leading global information and communications in Sri Lanka within the first phase of operations. Accordingly,
technology solutions provider and the number one growing Dell has grown exponentially in Sri Lanka over a short period
smartphone brand in Sri Lanka. The brand continued to hold to become the leading PC brand in the local market for three
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consecutive years as per data released by International Data Hitachi: Inspire the Next
Corporation (IDC). Singer won the “Best Consumer Distributor” With the latest advanced Japanese technology and trust that
award as a result of the Company’s significant contribution comes with a 100-year reputation for reliability, Hitachi home
towards Dell’s business in the consumer segment during appliances and electronics are the ultimate choice for every
the period. room in every home. Featuring smart human-friendly designs,
advanced eco-conscious technologies, and quality materials,
Samsung: Turn on Tomorrow Hitachi home appliances and electronics accentuate
Samsung Electronics is a global leader in high-tech your everyday life. Singer has brought to Sri Lanka a wide
electronics manufacturing and digital media. As one of the range of Hitachi products, including inverter refrigerators,
world’s leading appliance brands, Samsung continued domestic inverter air conditioners, vacuum cleaners, and 4K
to dominate the market with its cutting-edge technology smart televisions.
in televisions, refrigerators, mobile phones, and a host of
other product categories. The Samsung brand has over Mitsubishi: Creating Your Comfort
the years attracted consumers of all categories regardless Mitsubishi Heavy Industries – Mahajak Air Conditoners Co. Ltd.
of their gender or socio-economic status. Samsung is (MACO) is one of the leaders in Thailand’s air conditioning
ranked on top when it comes to advanced smart televisions industry, manufacturing superior quality domestic, light
and energy saving digital inverter technology refrigerators commercial centralised air conditioners. Singer partnered
and smartphones. with Mitsubishi brand in year 2012 and the Brand has
gained the trust and reliance of its customers for its high-
Zoje quality products, on-time delivery, reasonable prices, and
Zoje Sewing Machine Company Ltd. is one of the largest environment-friendly technologies.
industrial sewing machine manufacturers in China since its
inception in 1994 and houses the famous Zoje brand. Zoje Moulinex: Cooking Made Easy
is well-accepted in the Sri Lankan industrial sewing machine Singer introduces innovative and versatile kitchen appliances
market due to its quality and reliable performance. Zoje as an under the reputed French brand, Moulinex, every year.
industrial sewing machine brand continues to grow in market These appliances are designed to enhance the efficiency
share since its partnership with Singer in 2002, backed by and effectiveness in cooking and food preparation,
Singer’s service excellence. enabling modern housewives to reduce the time they spend
in the kitchen.
Beko: Official Partner of Everyday
Since 2013, Singer has been the sole distributor and Tefal: Ideas You Can’t Live Without
authorised service partner for Beko in Sri Lanka. Beko Singer offers products from world renowned French brand
continues to be the number one free-standing home Tefal across multiple product categories – kitchen appliances,
appliances brand in Europe, offering smart technologies irons, vacuum cleaners, and fans. Tefal is also known for
combined with stylish functional design that are both its global market leadership in the cookware category
eco-friendly and user-friendly with enhanced functionalities with products designed to give consumers the optimal
and efficiency. Singer, together with Beko, offers a premium performance in their designated tasks and durability.
experience through a range of cutting edge Beko appliances
for the modern home. Beko products marketed in Sri Lanka
Kenwood: The Number 1 Food Preparation Brand in Europe
include refrigerators, free-standing and built-in electric and
gas ovens, washing machines, built-in hoods and hobs, Singer offers a variety of kitchen appliances and household
dishwashers, and dryers. appliances under Europe’s Number 1 food preparation
brand, Kenwood. Since 2008, Singer has offered a variety
of Kenwood products including blenders, smoothie makers,
TCL: The Creative Life
choppers, sandwich makers, juicers, kitchen chef, food
Founded 37 years ago, TCL is one of the fastest growing processors, hand beaters, irons, and vacuum cleaners which
brands in China and USA. It makes a wide range of consumer are available at Singer outlets around the island. Recent
electronics products and appliances including televisions, introductions included the all-new Kenwood Chef Major which
refrigerators, washers, dryers, air conditioners, Blu-Ray is designed to make light food work preparation and helps
players, and cell phones in different regions across the world. create an array of dishes with ease.
By offering great products at reasonable prices through
Singer, TCL has gained the trust of Sri Lankan customers.
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The Cool
Option
Cool = Fresh... and SINGER SIDE BY SIDE
Nutritious...and Healthful - SN-SBSH2-66
• Net Capacity – 514L
– a really ‘cool’ box – • Mirror Finish
the refrigerator. • Eco Friendly R600A Refrigerant
• No Frost
• Low Noise Compressor
SAMSUNG
– RS72R5001M9
• 690L extra large capacity
• Digital Inverter compressor for
super energy save
• Toughened glass shelves for
durability
• Ten year warranty on
Compressor
HITACHI
H-RW690GBK
• Side by Side
• Capacity – 540L
• Four Door
• Inverter
• Dual Fan Cooling
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Singer became the pioneer of using modern Internet

and Communication Technology (ICT) for our after
sales operations by covering the SFA network with
a web-based software application and mobile-based
Android application.
Prestige: Delighting the Homemaker through Innovation the family. Nikai Brand is built on the promise of reliability from
Established in the United Kingdom in 1938, Prestige offers product to performance. Reliability is the foundation on which
premium kitchenware including items such as cookware, the Brand stands tall.
pressure cookers, and electricals. A high level of quality is
paramount at Prestige which leads to a lifetime guarantee for Unic: The Company Owned House Brand
certain products on offer. Singer is partnered with Prestige Unic offers a wide range of products including televisions,
to be their sole agent in Sri Lanka and is home to a diverse rice cookers, and air conditioners. The brand continues to
selection of items ranging from pressure cookers to grinders grow in Sri Lanka.
and gas burners.
Asus: In Search of Incredible
Sharp: Be Original
Singer was appointed as a consumer notebook distributor and
Sharp Corporation of Japan is a leading innovator, having the exclusive Large Format Retailer (LFR) for Asus laptops in
Singer Sri Lanka created many world-first products. Products from the Sri Lanka. Asus is a multinational computer hardware giant
Japanese manufacturer include its signature four-colour
offers a wide array “Quattron Pro” LED TVs, “Plasmacluster” air purifiers, and
with a focus on creating products for today’s and tomorrow’s
smart life. It is the world’s No. 1 motherboard and gaming
“Healsio” microwave ovens.
of eco-friendly laptop brand and among the top three consumer notebook
vendors. Asus will introduce a range of laptops at various price
refrigerator Singer partnered with Sharp as their sole agent for electronics
and home appliances in Sri Lanka and as the preferred retail
points and specifications to cater to the requirements of the
customers. Singer serves, and the products will be available
options for every partner for office equipment since 2013. This has enabled us
to offer the Sri Lankan market a range of cutting edge Sharp
through all Singer channels.
lifestyle and branded products including LED TVs, microwave ovens, air
purifiers, vacuum cleaners, fans, multifunction printers/copiers,
Indesit
Singer introduced the world-renowned “Indesit” brand while
budget to keep and cash registers.
adding their latest products to the Singer product portfolio.
food fresh and Skyworth: Lead the Future

The brand is famous for home appliances including free-
standing gas cookers, hoods and hobs, dishwashers, and
Skyworth is a large-scale high-tech company primarily
nutritious. engaged in manufacturing consumer electronics. Singer is an
washing machines. Singer is the sole and exclusive distributor
for the Indesit brand in Sri Lanka, opening the doors for
authorised dealer to the Skyworth Brand in Sri Lanka and the Sri Lankan customers to experience European products at
brand has grown steadily over the past few years in Sri Lankan affordable prices. The products will be available mainly at
consumer segments. Singer Mega and select Singer Plus showrooms.
Nikai: Transforming Houses into Homes Thermos and Regnis Vacuum Flasks
Singer introduced the Nikai brand in August 2018 with a To penetrate the gift market of the country, Singer introduced
range of kitchen appliances, audio-visual equipment, and Thermos flasks as a heritage international brand of vacuum
home appliances. Envisioned to meet all the appliance and flasks. Recognising the growing demand for such product,
electronics needs of every homemaker, Nikai is a one-stop Singer introduced another series of vacuum flasks under
brand that is geared to meet the needs all members of Regnis, one of its house brands, adding vibrancy to the range
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with more colours and designs. This has led to increased Singer became the pioneer of using modern Internet
impulse purchases by shoppers, opening avenues to enter and Communication Technology (ICT) for our after sales
the gift segment of the country. operations by covering the SFA network with a web-based
software application and mobile-based Android application
Farmmaster for processing, maintaining, and finishing service work
orders online. With this new system, repair follow-ups, parts
Singer Sri Lanka PLC has a long history of contributing to
availability, and repair turnaround time reduced drastically
the local agriculture segment by introducing many kinds of
compared to the previous system.
agricultural machinery. The Minitiller was introduced to farmers
upcountry who required lightweight heavy-duty machinery.
During 2018/19, Singer Service continuously trained our
The Minitiller can be used in paddy fields, vegetable fields,
staff members to be well-versed in technical knowledge
and potato fields in mountainous areas for rotary tillage, deep
imperative to offer excellent customer care through various
plowing, ditching earth, and riding.
overseas training programmes conducted by first class
consumer product manufacturers such as TCL, Sony, Hitachi,
Singer introduced the Viknyo Farmmaster in 2013 with the
Beko, and Panasonic.
FMRC certificate, which is highly recognised in the agricultural
sector. With its quality and Singer’s excellent after sales
service, the Farmmaster became the highest selling two-wheel Apparel Solutions
tractor in the country in 2015 and has held that crown for the The Singer Industrial Sewing Machine Division, formerly
past four years. known as the “Industrial Product Division”, was relaunched
as “Apparel Solutions” after a strategic decision in 2005. The
The Farmmaster Combine Harvester is a versatile machine Division imports and distributes industrial sewing machines,
designed to efficiently harvest a variety of grain crops. laser machines, bonding machines, spreading machines, and
It covers the three main harvesting operations: reaping, cutting and embroidery machines. In line with Singer’s multi-
threshing, and winnowing. After introducing the Farmmaster brand strategy, the Division followed suit by adding several
Combine Harvester in 2015, it has gained wide acceptance international brands to its product portfolio, including Sunstar,
and popularity amongst Sri Lankan farmers. ZOJE, Megasew, SDY, Sansiko, and TSM. The Division’s sales
mix consists of two segments: one segment leverages the
Kito existing retail and wholesale channels, and the other segment
focuses on direct sales to factories on indent basis.
Kito brand was introduced in year 2018/19 to the furniture
range by bringing up the modern appearance for display
units. Kito mainly offers smart wall storage solutions to the Singer Research and Development
consumers with added benefits; easy to use, easily mounted Under the guidance of new corporate management, the
on walls. Singer Research and Development unit expanded with the
recruitment of three new technical officers and an engineer for
the Research and Development (R&D) fleet along with a new
Overview of Performance of Strategic Business Units
1,500 sq. ft. facility located at Singer Industries Ratmalana
Singer Service Centres for refrigerators, washing machines, and electrical products.
Singer operates 14 service centres across the island, 391 It further expanded the R&D operations of new products
Consumer Products Service Franchise Agents (SFA), 92 introduced by local and foreign factories with customised
motorbike service franchise agents, and 36 furniture service designs. The Agro after sales division was also attached under
franchise agents. Each service centre is well-equipped to R&D for continuous improvement of their product portfolio
provide the highest standard in customer care with skilled and through combined research with local and foreign factories.
competent service agents. In line with continuous efforts to
maintain the highest standards, the Vavuniya service centre Singer Call Centre
was opened in 2018 and the foundation laid for the new South
Singer commenced the first phase of the Service Dedicated
Colombo regional service centre at the heart of the South
Call Centre operation with 12 dedicated call agents for
Colombo region, Maharagama. The project is expected to
inbound and outbound call centre operations. Within the
conclude at the end of July 2019, introducing a new concept
first phase, all direct customer complaints and Cash & Carry
in after sales service experience for customers with state-of-
dealer customer complaints are registered and work orders
the-art technologies and facilities.
created through the call centre after a customer validation
process. The second phase of the call centre operations will
see it expanded for customer complaints received through the
Singer retail network.
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E-commerce catalogue is hosted on a large screen TV at the branch and

Omni Channel Strategy updated centrally via head office.
We recognise that the new generation of customers enjoy
Customers can browse through the catalogue using a remote
shopping online as much as they do visiting retail stores.
control and viewing more information about products via
As a result, we introduced new functionalities to our website:
a user-friendly interface that organises products in easily
zz Store Locator – Customers can check for availability of searchable categorisations. This project is currently launched
products by searching for stores within their proximity as a pilot project in 20 branches.
on the website product page.
zz Customers also can visit the store to complete a purchase Sanasuma and Extended Warranty
if a product is out of stock on the website. We are proud to announce that we are the only e-commerce
business in Sri Lanka to offer extended warranty and coverage
As a formal strategy to improve e-commerce business to in case of a natural disaster.
serve future needs, following developments were done in
year 2018/19 to improve e-commerece platform. Information Technology Division
Singer has embraced mobile technology to enhance our
Website business functions and better serve our customers.
As web technology is increasingly supporting the retail
business, we have fully revamped the www.singer.lk website Mobile Field Collections
and implemented Cash on Delivery (COD) functionality. We
launched a pilot project to implement web sales stations zz Marks the first time in Sri Lanka that a consumer durables
in selected shops with the help of large screen TVs and company has introduced hire purchase instalment collection
improved telecommunication links. The project aims to provide through a mobile app. The app provides an interface to
customers with better service by displaying and recording the ERP system, enabling transactions to be processed
sales for products which are not physically available in-store. electronically in the field, and produce a receipt using a
mobile printer.
Service Franchise Agents System zz Electronic collection process in the field eliminates manual
To improve the after-sales service operations, the IT collections at shops, resulting in cash flow improvements
Department together with the Process Improvement for the Company.
Department implemented the Service Franchise Agents zz We have implemented the solution in all locations covering
System (SFAS) to cater to Service Franchise Agents, service more than 800 collectors.
centres, the branch network, and head office. The system
brings with its various benefits, including: Singer Express Pay
zz A common system to raise service requests
zz Online updates of Work Order status
zz Online dashboard and automation
zz End-to-end communication between all stakeholders
via SMS and email The Singer Express Pay service allows customers to make a
wide range of bill payments, including credit cards, mobile
zz Removal of data entry operations at service centres
phones, insurance, utility bills, and Ez Cash and Mcash
top-ups and withdrawals at over 442 retail outlets across the
The system features an HTML5 web application and Android
island. With extended timings on weekdays and weekends,
application which can be used to access specific features.
customers can avail of Singer Express Pay’s services through
The SFAS applications are implemented across all Singer
Singer’s retail outlets without being dependent on their bank or
Service Centres, branches, and the entire Service Franchise
service provider’s operating hours.
Agents network.
The latest additions to the Singer Express Pay service include
Digital Product Catalogue tie-ups with many insurance and lease companies, including
Singer (Sri Lanka) PLC is in the process of implementing a AIA Insurance, Union Assurance, Sri Lanka Insurance, Allianz
Digital Product Catalogue in retail stores around the country. Insurance, MBSL Insurance, Janashakthi Insurance, and
This project has been launched to provide product details CDB Lease. Singer’s commitment to building customer
and product features to visiting customers and can be used relationships is mirrored in the partnerships it has developed
as a tool to showcase models not in stock at the branch. The with the companies and institutions involved in the Singer
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Express Pay service, with many of Sri Lanka’s leading with the ambition of becoming a key Air Conditioning solutions
companies offering their customers an added dimension of provider in the market.
professionalism and convenience.
Globally reputed commercial air conditioner brands have
On the payments side, Singer Express Pay continues its tied-up with Singer as solution providers to the Industrial Air
relationship with Western Union Money Transfer to enable Conditioning Division. The Company entered into exclusive
foreign remittances. For this service, Singer has tied up with distributorships with Japanese brand Mitsubishi inverter/
NDB Bank, who acts as the Principal Agent. standard unitary products and VRF systems, and Fujiair Air
Conditioners with a full range of heating, ventilation, and air
Singer Express Pay gives Singer’s customers the convenience, conditioning (HVAC) products that have helped the Division to
innovation, and service they deserve, and is another example provide world class solutions to its clientele.
of how Singer strives to make life easier, more convenient, and
more enjoyable to its valued customers. With increasing demand in the country, the Industrial Air
Conditioning Division is poised to grow rapidly in the future.
Singer Distribution Centre
The state-of-the-art Distribution Centre commissioned in Singer Factory Complex – Piliyandala
2004 at Piliyandala is now in its 14th year of operations. In The Agro Factory introduced six new water pumps in 2018/19:
2017, distribution operations were decentralised with the plastic impeller 3-inch diameter tube well pump series 0.5 HP
opening of a 75,000 sq. ft. Logistics Hub in the Matale District , 0.75 HP, and 1.0 HP pumps designed for 4-inch diameter
of Dambulla to cater to requirements for the North and the tube wells, a low cost pump range 0.5 HP and 0.75 HP under
East Provinces and part of the Central Province, with the key the Regnis brand specially for the Hardware Channel. Also a
objective of providing better and faster service in keeping with domestic-oriented 0.75 HP automatically controlled pressure
the expected increase of volume of new and existing products pump for increasing water pressure in domestic usage.
In year 2018/19, the Company further expanded distribution To promote the pumps, several outdoor programmes were
operations by decentralising its operations to Ekala joining with conducted, including plumbers/farmers day programmes and
leading logistic provider Logiwiz Limited and entered into an door to door awareness campaigns in several towns across
agreement to increase capacity by 14,930 cubic meters and the country.
to handle inbound and outbound CBM of 6,400 each.
Singer factory has invested Rs. 11.5 million on dry paint
The Distribution Centre has maintained the ISO 9001:2008 booths from Spray Technics India. These paint booths are
standard for the last 13 years. equipped with state-of-the-art air circulation and filtration
systems to minimise emissions. The dust-free environment
The Distribution Centre is one of the key contributors to enables high gloss painting for modern furniture. The
Singer’s Green Initiative programme, serving as the main Factory has also invested in two Sames-Kremlin spray guns
Collection Hub for the Company. All employees actively to enhance paint quality. Sames- Kremlin is a leading brand
contribute to the collection of e-waste by the Company’s from France for spray painting equipment and own the
collection centres. Furthermore, keeping in line with global patent for Air Spray technology. Transfer efficiency of these
technological advancements and to minimise our carbon spray guns has been enhanced with this new technology
footprint and environmental impact, we commenced repairs of and provides a better finish and coverage for wood surfaces.
LED television panels locally in 2016 using the latest electronic
equipment. The initiative is currently progressing well. Solid Furniture Factory sanding capacity expanded with the
newly introduced Opera 5 wide belt sander, an investment
Industrial Air Conditioning Division of Rs. 12.3 million. Single pass 1mm high material removal
rate can be achieved due to the combined mechanism of
Singer successfully entered the central/industrial air
spiral cutter head and sanding roller. A four-foot feeding belt
conditioning market with the formation of the Singer
provides the flexibility to sand a wide range of tabletops with
Industrial Air Conditioning Division in 2012. Singer Industrial
a smooth surface finish.
Air Conditioning Division, which is supported by a group
of professional engineers, has already acquired major
The Modular Furniture Factory invested Rs. 26.5 million in
commercial projects such as the Platinum 1 Apartment project,
a new CNC router/drilling machine, the Skipper 100L and
Commercial Bank branch network, Wayamba University
Rs. 7.8 million in an automatic edge banding machine and
Auditorium project, Aira Lagoon Hotel project, Analytical
manual edge banding machine as replacements of old
Properties (Pvt) Ltd. project, Mandarina Hotel project, and
machinery. Simultaneously, the factory layout was changed
Prime Grand Residencies project, to name a few. The Division
to be compatible with the new machinery while focusing on
has shown considerable progress within a short span of time
efficient production processes.
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The eagerly anticipated event drew in large crowds

who came to check out a wide range of appliances,
furniture, electronic goods, smartphones,
and computers.
As an initiative to increase the market and gain more market

share by product differentiation, seven new bedroom sets
were introduced with the collaboration of Spacewood Furniture
Group in India.
Efforts to increase pantry cupboard sales continued in

2018/19 and as a result, YoY revenue in 2018/19 went up
by 8%. With a primary strategy of focusing on apartment
projects, the Factory was awarded three Prime Land apartment
projects with a total of 160 apartments. Extending service
support (from measurements to installation) to shops and
driving pantry sales through the Singer Plus channel with
the introduction of block pantry units were some of the other
strategies employed.
A two-day training programme was carried out by the

Singer Piliyandala Factory in each quarter to enhance the
product knowledge of the staff members of Singer Homes,
Singer Mega, and Singer Plus channels. Apart from the
study sessions, a hands-on experience was provided
to all participants.
Marketing Initiatives
Singer Lifestyle Exhibition
The 8th Singer Lifestyle Fiesta was held at the BMICH on the
23rd to 25th of November 2018. The eagerly anticipated event
drew in large crowds who came to check out a wide range
of appliances, furniture, electronic goods, smartphones, and
computers that were showcased under one roof and take
advantage of attractive discounts. Ticket sales proceeds were Singer Lifestyle Fiesta 2018
contributed towards the Company’s CSR fund which funds the
numerous CSR activities launched during the year. Bathiya and Santhush Appointed as Brand Ambassadors
for Sony Audio Products
Singer (Sri Lanka) PLC together with Sony International
appointed Sri Lanka’s leading musical duo, Bathiya and
Santhush (BNS), as brand ambassadors for Sony audio
products in the country. Since the 1990s, the pop duo have
been one of the biggest musical acts in the Sri Lankan
musical scene, mixing Sinhala, Tamil, and English lyrics in
their original music while also using Hindi and remixing songs
to bring out their contemporary style and revolutionising the
country’s music industry in the process.
Lighting Traditional Oil Lamp – Singer Lifestyle Exhibition 2018
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Bata, Nolimit, Vision Care, DSI, and Sarasavi Bookshop to

occasionally offer exclusive offers and discounts to Singer
Loyalty customers.
Interflash 2019
Sony was the title sponsor for Interflash 2019, the main
finance project organised by the Interact District 3220, which
successfully concluded on the 25th of January 2019 at the
Nelum Pokuna outdoor premises. The event catered to the
biggest crowd a musical show in Sri Lanka has ever seen with
over 8,000 individuals gathered to enjoy the concert.
Music Legends, Bhathiya and Santhush appointed as Brand

Ambassadors for Sony brand in Sri Lanka
Annual Fashion Show and Awards Ceremony
The Singer Fashion Show and Awards Ceremony 2018/19 was
Commenting on the partnership, Bathiya Jayakody stated, held at the Bishops College Auditorium in September 2018
“As musicians, we are always conscious about the quality of and marked the annual showcase of designs and creations
the sound that we listen to as well as what we produce for of diploma students from the Singer Fashion Academy. Their
our legions of fans. By using Sony audio products, you are efforts were rewarded during the awards ceremony which took
guaranteed to get the very best in sound technology and place simultaneously during the course of the fashion show.
experience a new level of audio excellence. This makes it The Fashion Show included seven glamorous segments:
a perfect fit for us as striving for that next level of musical Kandyan Wear, Office Wear, Kids Wear, Gents Wear, Evening
excellence is what we always aim for.” Wear, Casual Wear, and Indian Wear. The awards ceremony
also presented respective certificates to students who had
Singer Sri Lanka offers a wide range of Sony audio products successfully completed their Diploma in Scientific Dress
through the largest distribution network in Sri Lanka, including Making and Diploma in Machine Embroidery.
headphones, wireless speakers, MP3 players, high-resolution
audio systems, digital voice recorders, boomboxes, radios,
portable CD players, home theatre systems, and accessories.
Customer Loyalty Programme

The Singer Customer Loyalty programme is a flexible
and convenient programme for Singer customers. Singer
Loyalty customers are eligible to earn points through cash
sales, hire purchase sales, monthly instalments, and when
paying utility and credit card bills through Singer Express
Pay counters. One Loyalty Point is equivalent to Rs. 1 and
members can redeem their Loyalty Points against new
purchases. Singer Loyalty Customers are also eligible for
seasonal discounts from various partner merchants.
Singer’s superior Enterprise Resource Planning (ERP)

system facilitates the recording of Loyalty Points earned and
redeemed on customers’ receipts and customers receive
SMS updates. The One-Time Password (OTP) system assures
customers of safety and a convenient shopping experience,
allowing them to redeem their Loyalty Points without carrying
their Loyalty cards by sending the OTP to their mobile phone
at the point of sale.
At the end of 2018/19, total customer enrolments surpassed

1.3 million and more customers than ever redeemed their
points to the value of Rs. 89 million. Singer has rewarded
Rs. 523 million worth of Loyalty Points at the end of 2018/19. Showcasing students’ talents at the Annual Fashion Show 2018
Singer has tied up with prestigious establishments including
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The Fashion Show and Awards ceremony are conducted every Singer Sri Lanka Social Media Presence
year and are considered as the main events for the Singer Singer Sri Lanka uses its Facebook page as a main platform
Fashion Academy as well as the highlight of the Academy to communicate directly with the fans and customers.
where diploma students receive the opportunity to showcase Facebook is an integral part of the CRM cycle and can help
their creative streaks via a catwalk to an audience. The event customers to build trust, engage with the brand, ask queries
allows them to forge for themselves a platform that gives them regarding products and services, and place complaints,
a sense of confidence and paves the way for wider range of which we can directly contact the customer and resolve
business opportunities. issues. Singer collects leads and information about its fan
base and determines how to best communicate with its target
audience. The Singer Facebook Page acts as a CRM tool
which can be used to manage interactions with customers,
clients, and sales prospects. Facebook helps to nurture and
retain customers, entice former clients back into the fold, and
reduce the costs of marketing and advertising.
Singer Sri Lanka was able to increase and maintain its 100%
response rate as a result of a 24-hour Problem Solving
policy, through which Singer endeavours to answer all
queries received within 24 hours. We continue to use the
3A mechanism – Acknowledge, Apologise, Address – as a
problem-solving technique. The technique has helped to
build trust and perception of reliability and strengthen the
relationship between the brand and its customers.
Awards and Accolades

Great Place to Work
Singer (Sri Lanka) was recognised as one of the best
workplaces in Sri Lanka for the fifth consecutive year,
becoming an elite member in the “Hall of Fame” in July 2018
at the exclusive award ceremony held at Hilton Colombo by
the Great Place to Work Institute, Sri Lanka. Each year, Great
Place to Work conducts the largest annual set of workplace
culture studies in the world to develop and recognise high-
trust workplaces, and the survey was carried out for the sixth
time in 2018.
At the Award Ceremony – Great Place to Work 2018

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REPORTS INFORMATION
The
“Retina”
of Life
SINGER EPIC – SLE75G6B 75”
GOOGLE ANDROID AI TV
Singer Epic 75” 4K HDR Google Android
AI Smart TV follows the design language of
Entertainment, information simple & flow. Every major part of the design is
and everything in between – covered by aluminium alloy , protecting from
scratch and damages by any hard object.
delivered via the “retina” of Besides, metal is hard to be distorted,
the world – television ensuring that we have the top level product
quality in our industry. The TV comes with
|Google Assistant application to get the real
life smart TV experience.
KD-65A9F
Sony Master TV series meet the strict
criteria of top engineers and make beautiful
images a reality.
SAMSUNG
– SMGQA65Q8CNA
Brilliant Quantum dot colour, immersive curved
viewing, ten year burn in free warranty.
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SLIM-Nielsen People’s Brand of the Year

Singer (Sri Lanka) celebrated its 13th consecutive win as Sri Lanka’s popular brand at the SLIM-Nielsen People’s Awards held
in 2019. The Company won the “People’s Durable Brand of the Year” and the coveted “SLIM-Nielsen People’s Brand of the Year
2019” award.
Continuing the Journey – Peoples Brand of the year 2019
Dell Partner Awards FY19

Singer (Sri Lanka PLC) won the most coveted “Best Distributor of the Year FY19 (Consumer)” and “Best Large Format Retailer
FY19 (Consumer)” accolades at the Dell Partner Awards as a result of the excellent contribution the Company made towards the
Dell business under the consumer segment during FY19. Singer also won the “Best Consumer Distributor Salesperson (FY19)”
and “Salesperson of the Year – Client Solutions (Runner Up)” awards.
Experience the
golden age of
television with
the perfect
television to suit
your budget from
Singer Sri Lanka.
Dell Partner Awards Ceremony – Best Distributor of the Year
Annual Report Awards by the Institute of Chartered Accountants of Sri Lanka

Singer won the gold award in the trading sector at the annual report awards ceremony organised by The Institute of Chartered
Accountants of Sri Lanka.
Annual Report Awards Ceremony 2018

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CUSTOMER
CAPITAL
Singer delivers a slate of new, cutting-edge products

to Sri Lankan customers from several world-renowned
brands.
True to our vision and mission, Singer continues to offer The new A8F series inherits Sony’s unique 4K HDR picture
customers a comprehensive product and service portfolio processor, the X1 Extreme, and Acoustic Surface technology
through our expansive network of distribution channels. As to give high quality visuals and awe-inspiring sound. As
the times have progressed, our customers have evolved. an OLED TV, the A8F series produces incredibly detailed
Our product portfolio has expanded accordingly to provide images with deep blacks, rich and realistic colours, and an
customers with the products they desire. 2018/19 saw Singer exceptionally wide viewing angle.
deliver a slate of new, cutting-edge products to Sri Lankan
customers from several world-renowned brands. The new X9000F series, equipped with the X1 Extreme
processor, will be available in 85”, 75”, 65”, 55”, and 49”
screen sizes. Both the A8F and X9000F series support Dolby
Product Portfolio
Vision, the premium HDR format from Dolby Laboratories
Sony OLED and 4K HDR Televisions which creates an even more immersive, engaging cinematic
Singer, together with Sony International, launched a new range experience with striking highlights, deeper darks, and
of OLED and 4K HDR televisions along with the MASTER vibrant colours.
Series, the A9F and Z9F televisions. The new televisions
are designed to deliver enhanced contrast, colour, and In addition, the A9F and Z9F series are part of the new
clarity. The A8F and X9000F series are the newest options MASTER Series, a name Sony reserves exclusively for its
to enjoy a refined 4K HDR picture quality through Sony’s highest picture quality TV models. Developed to follow a very
proprietary innovations.
Launching new Sony Bravia OLED series to Sri Lankan customers

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Customer Capital
strict set of product evaluation criteria by its most experienced Sony Home Audio Systems
picture quality engineers, Sony is confident the flagship Singer, together with Sony International, launched six new
MASTER Series delivers the highest picture quality possible high-power Home Audio Systems, including Shake 3-box
in a home setting. From 4K film, video, and still cameras, models (MHC-M60D, MHC-M40D) and the all-in-one box style
to game consoles, mobile phones, and televisions like the (MHC-V81D, MHC-V71D, MHC-V41D, MHC-V21D), all of which
MASTER Series, Sony is the only consumer electronics are guaranteed to fill any room with booming sounds.
manufacturer capable of providing 4K solutions to consumers
“from the lens to the living room”.
Singer Epic 4K AI Televisions with Google Android

Singer launched the all-new Singer Epic 4K Artificial
Intelligence TV range, the most affordable premium products
yet from Singer. The TVs are available in 43-inch, 49-inch,
58-inch, 65-inch, and 75-inch sizes with Android TV, making
Singer the first local TV brand to partner with Google Android.
Android TV comes built-in with Google Assistant, enabling
users to simply say “OK Google” or press the mic button on
the remote control to find the information they require.
The all-metal 75-inch TV is marketed at around a third of the

price of similar sized models from other brands with picture
quality defined by features such as IPS panel, local dimming,
and support for HDR10 and HLG high dynamic range formats.
The television boasts a vast array of picture enhancements
including scene modification, picture smoothening, colour
compensation, skin colour improvement, and HDR+
technology that delivers outstanding images with high contrast
and accurate details.
Singer is the first in Sri Lanka to introduce the 58-inch 4K

Ultra HD Smart TV at the same price as 55-inch models in
the market today. The 43 and 49-inch models feature a
front-facing sound bar that gives the audience crisp and clear
sound. The TV range comes with a 3-year fully comprehensive Launching SONY SHAKE HiFi Audio Series
product warranty and is backed by Singer’s renowned
after-sales service.
Launching Singer Epic AI google android TV

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Customer Capital
The 3-box models provide wide stereo sound for both The Y9 2018 entered the market with its superior display
day-to-day audio needs and weekend house parties with and photographical capabilities, using four cameras to
high power amplifiers providing an impressive level of sound capture stunning photos with the ability for the user to
pressure. Music can be played from any source such as CD, control the depth of field to make truly mesmerising portraits
DVD, HDMI OUT (ARC), USB, Bluetooth, as well as mic and and landscapes.
The Y7 Pro expanded consumer’s visions with a wide

DewDrop display, classic design, and an astonishing
16-megapixel front camera. An impressive 4000 mAh battery
with AI power saving technology enables worry-free travelling
without the need for frequent recharging.
The Y6 Prime’s 5.7-inch HD+ (1440x720) FullView display

boasts an impressive resolution with an ultra-high screen-to-
body ratio, bringing a larger world into your view. A sleek 2.5D
screen design harmonises perfectly with the soft matte back,
highlighting the flash of colour with the camera frame.
The Y5 Lite 2018 is the first ever Huawei entry-level

smartphone with a 5.45-inch HD+ FullView display. The
exceptional display has won over the attention of youth around
the world, providing an ideal platform for video streaming,
gaming, and an entertainment hub ideal for the young spirit.
guitar input. Users can also enjoy Wireless Party Chain via
Bluetooth® and Party King mode.
Additionally, Singer and Sony unveiled the new SRS-XB41,

SRS-XB31, and SRS-XB21 EXTRA BASS wireless speakers. Launching Huawei Smartphone Y-series
The speakers are promising audio devices for parties, with
exciting features such as live music mode, “Party Booster” Asus Laptops
feature, multi-colour line lights, speaker lights, and flashing
Singer introduced several Asus laptops upon the official
strobe lights. Up to 100 speakers can be connected to create
announcement of the partnership with the multinational
a Wireless Party Chain via Bluetooth. The sound quality of the
computer hardware giant. The range of laptops will be
speakers are designed to sustain and focus on “deep bass”
introduced at various price points and specifications to cater
and “punchy bass”, which perfectly complement bass-heavy
to the requirements of different customers. The products are
music such as the popular music genres of EDM, grime, and
powered by the latest Intel 8th generation Core processors
hip-hop.
and genuine Windows 10 operating system and come loaded
with features including Full HD anti-glare screens, fingerprint
Huawei Y-series
readers, Asus’ fast-charging technology, and NVIDIA
Huawei launched the much-anticipated Y9 2018, Y7 Pro, GeForce graphics technology. All Asus laptops offer a 2-year
Y6 Prime, Y5 Prime, and Y5 Lite models as additions to the manufacturer’s warranty and customers can take advantage of
thriving Huawei Y-series. Singer’s 2-year extended warranty at a special rate to obtain a
4-year warranty for all Asus laptops. The products are available
through all Singer channels.
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Customer Capital
Singer also introduced an European-made stylish free-

standing oven with a capacity of 62 litres. The oven features
Italian-made Sabaf burners with an electric oven compartment
at an affordable price compared to other leading brands
in the market.
Beko Built-in Solutions

Beko offers an array of built-in solutions that seamlessly
integrate into any kitchen design, providing a clean, modern,
and elegant feel to the kitchen. From hoods and hobs to
microwaves, ovens, refrigerators, and washers, Beko fulfils the
voids in any modern kitchen. As Europe’s No. 1 brand and
equipped with the latest European technology, Beko’s built-in
solutions are targeted primarily at the high-end market.
Unic Rice Cookers

Unic introduced a range of rice cookers in four colours
and four capacities from 0.6 litres to 2.8 litres. The range
introduces colour variance to Singer’s existing rice cooker
range and are sold at attractive prices aimed towards the
price-conscious market.
Partnering with ASUS brand

Samsung Smart Convertible Refrigerators
Retro Microwave Oven Sri Lankan customers can now experience the all-new
Singer introduced the newest addition to their microwave technology of smart convertible inverter refrigerators. The
range, the Retro Microwave oven. The oven comes in a red revolutionary “Smart Convertible 5-in-1” range caters to
vintage design with modern performance. the diverse storage needs of consumers. The refrigerator
is powered by Twin Cooling Plus technology that enables
Fitness Equipment Range consumers to be flexible with cooling storage based on their
needs. The true independent cooling system allows turning
Singer introduced a new range of fitness equipment as a
the freezer into a fridge when required. The new refrigerator is
category expansion to the fitness range in January 2019.
energy efficient, durable, and addresses the unique storage
An Orbitrack and a bike were introduced in the first phase.
needs of consumers while offering the ultimate convenience.
Singer Built-in
Samsung also introduced the Smart Digital Inverter range
Singer Built-in, a new addition to the kitchen appliances range, of refrigerators, which offer a blend of freshness, energy
offers an exquisite selection of hoods and hobs to match efficiency, even cooling, and durability. It offers the perfect
the requirements of our customers at affordable prices. The solution to provide savings on electricity bills, retain
hoods are inclusive of flat and chimney-type and the hobs uninterrupted cooling, and freshness during power cuts.
come in different sizes and couple with the hoods. Samsung is committed to addressing the diverse consumer
needs and preferences of consumers through meaningful
Singer Industrial Rice Cooker innovation. The new range of Samsung convertible inverter
The Singer Industrial Rice Cooker comes with a 10-litre refrigerators come in 320 litre and 345 litre capacities and are
capacity with the ability to cook up to 6kg of rice. The rice priced competitively. They are available at over 442 Singer
cooker is ideal for small scale businesses and is the most outlets across the island and are backed with unmatched
affordable model in the market amongst similarly capable service by Singer.
rice cookers.
Philips Personal Care Products
Singer Electric Oven and Free-standing Gas Oven The business of grooming/personal care products is an
The Singer 38-litre electric oven is the largest capacity oven in emerging segment in the consumer durables industry. Singer
the entire Singer tabletop electric oven range, with a spacious entered the business in March 2018 through the reputed
cavity that allows for baking up to 2.5kg. brand, Philips. From then to now, the business has expanded
in terms of the product range and distribution opening
new avenues to its retail business. Singer offers a range of
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REPORTS INFORMATION
Customer Capital
As a large customer-centric organisation, our customer

service representatives across the country strive to
deliver the best quality products and services.
male and female products to fulfil the grooming needs of Customer Satisfaction Surveys
our customers.
Customer Surveys conducted 12
Casio Musical Instruments Customer complaints received 18,998
Casio musical instruments ranging from mini keyboards to Customer complaints resolved 18,998
digital pianos were introduced to fill the void in the entry
range segment in the musical instrument product category.
The range is to be expanded in terms of distribution and Singer Contact Centre
products in the upcoming financial year. A variety of products Singer was the first consumer durables retailer in Sri Lanka to
including mini keyboards, standard keyboards, high-grade establish a Contact Centre to offer our customers unparalleled
keyboards, arranger keyboards, and pianos will be added to after sales service. The Contact Centre initially began its
the existing range. operations in year 2008. Today the Singer Contact Centre is a
larger business unit which consists of 22 staff members. The
Singer Contact Centre operation facilitates customers through
Customer Feedback and Research
inbound, outbound calling, and processing of online sales.
Singer’s customers seek to purchase quality products from Our inbound operation mainly involves handling all incoming
genuine companies that meet their standards of value and customer calls related to products and services, customer
demand transparency in sourcing. As a large customer-centric complaints, and general inquiries. Our outbound operation
organisation, our customer service representatives across the consists of handling hire purchase verifications and customer
country strive to deliver the best quality products and services satisfaction surveys related to after sales service.
and maintain or exceed expectations through collecting
customer feedback. We also invest in obtaining data through The Singer Contact Centre operation was further extended in
feedback forms, informal surveys, product surveys, data 2018/19 by registering all product-related complaints received
mining, mystery shoppers, local and international research through dealers and service franchises. We also introduced
teams, and our Contact Centre that records and reports all a telesales unit which conducts operations to convert all
customer complaints and feedback. Occasionally, we utilise Contact Centre sales leads into successful sales and to
the services of research agencies such as Nielsen and LMRB conduct special campaigns for brand management; the team
to conduct consumer market research or product-specific increased sales volumes during the year. In order to improve
research to identify evolving consumer trends and needs. We the customer experience in after sales service, the Singer
also perform data mining on loyalty members to identify their Contact Centre facilitates the registering of all product-related
preferences and improve our products and services. complaints and a mechanism to follow up such inquiries with
the Service Centre management. In 2018, the Contact Centre
Customer retention served over 400,000 customers.
Customers at the beginning of the period 8,788,899

Furthermore, the Contact Centre provides relevant and
Customers acquired during the period 454,009 continuous training to staff on its operations and services
through internal and external training programmes designed to
Customers at end of period 9,242,908
enhance the customer experience.
Customer Satisfaction Survey

Contact Centre 2018/19 2017/18
As a customer-centric company, Singer is dedicated
to enhancing customer satisfaction, convenience, and Outbound 871,229 535,000
service quality. We regularly conduct customer satisfaction
Inbound 333,995 306,070
surveys to keep track of the pulse of our customers and
respond accordingly. Total 1,205,224 841,070
68 5 13 25
Customer Capital
Our Retail Presence

Greet up to March 2019
We greet customers with a warm and reassuring smile to

make them feel welcomed and ready to be heard.
Listen Intently
We listen to the customer and never interrupt them Northern
as they need to tell their story and feel they have 21

been heard.
Apologies
North Central
35
We sincerely convey our apologies to the customer for the
inconvenience caused.
Reach Agreement North Western

Eastern
We seek to agree on the solution that will resolve the

40 27
situation to their satisfaction. Our best intentions can Central
miss the mark completely if we still fail to deliver what the

customer wants.
51
Uva
31
Western
Follow-up 145 Sabaragamuwa
We follow-up to ensure the customer is completely 39

satisfied.
Southern
Thank Them 53
We thank the customer for bringing the problem
to our attention. We can’t resolve something we Singer Singer Singer Satellite SISIL Total
aren’t completely aware of, or may make faulty Mega Plus Homes Shops World
assumptions about. Central 2 28 3 10 8 51
Eastern – 21 – 4 2 27
Seek the Best Solution Northern – 17 – – 4 21
We determine the customer requirement by inquiring to North Central – 25 1 4 5 35
provide a solution. North Western – 28 2 5 5 40
Sabaragamuwa – 20 2 6 11 39
Take Quick Action Southern – 33 1 13 6 53
We act on the solution with a sense of urgency. Uva – 14 1 11 5 31
Customers will often respond more positively to our
quick resolution of the matter.
Western 21 85 9 5 25 145
Total 23 271 19 58 71 442
101 161 271 69
REPORTS INFORMATION
EMPLOYEE
CAPITAL
Singer is committed to providing an exemplary work

environment for its employees with employment
practices that are geared towards attracting and
retaining talent-based on merit.
Singer is committed to providing an exemplary work Part B Male Female Total

environment for its employees with employment practices
that are geared towards attracting and retaining talent-based Western Province 1,277 301 1,578
on merit. We enhance the skills of our employees through Central Province 235 38 273
extensive training and development programmes, and our
work environment is benchmarked against the highest North Central
standards for health and safety. Province 87 10 97
Eastern Province 58 5 63
Employee Profile Southern
Part A Male Female Total
Province 232 43 275
North Western
Permanent 2,174 401 2,575 Province 150 24 174
Temporary 175 48 223 Uva Province 99 11 110
Total 2,349 449 2,798 Sabaragamuwa
Province 143 17 160
Part B Male Female Total Northern Province 64 4 68
Full time 2,349 449 2,798 Total 2,345 453 2,798
Part time – – –
Recruitment and Turnover
Total 2,349 449 2,798
18-28 29-39 40-50 50 Above Total
M F M F M F M F M F
Labour Practises and Decent Work
Recruitment 256 119 135 20 23 6 11 6 426 151
Compliance with all statutory provisions governing labour
practices and decent work is ensured across the organisation Turnover 171 42 117 28 43 7 29 5 359 82
and Group of Companies. The minimum number of
weeks’ notice provided to employees and their elected
representatives prior to the implementation of significant
operational changes that could substantially affect them is
determined based on the situation.
70 5 13 25
Employee Capital
18-28 29-39 40-50 50 Above Total

Number % Number % Number % Number % Number %
Key and Senior – – 4 0.14 29 1.04 26 0.93 59 2.11

Middle Management 1 0.04 42 1.50 52 1.86 25 0.89 120 4.29
Junior Management 17 0.61 131 4.68 41 1.47 24 0.86 213 7.61
Executive 17 0.61 42 1.50 14 0.50 3 0.11 76 2.72
Non-management 747 26.70 841 30.06 512 18.30 230 8.22 2,330 83.27
Total 782 27.90 1,060 37.88 648 23.16 308 11.01 2,798 100.00
Governance Body
Female Male Total
Number % Number % Number %
Key Management – – 14 100 14 100
18-28 29-39 40-50 50 Above Total

Number % Number % Number % Number % Number %
Key Management – – 1 7.14 3 21.43 10 71.43 14 100
Identifying Skills Required for the Future culture of continuous learning, innovation, and team building,
The recruitment and training of employees who have the which is vital for a sustainable workplace. Empowering staff
potential to lead the Company in the future ensures the though training and the development of new skills can result in
continued growth of the business. Beyond academic the Company retaining high performing, loyal staff and avoid
credentials and skill levels, various other factors are also the high costs associated with the recruitment and training of
taken into consideration when making recruitment and new employees.
training decisions.
Training successors can increase the productivity, skill, and
It can be impractical to list the ideal skill sets, “hard” or “soft”, innovation of the workforce, enabling the Company to better
that are required in future leaders. A company culture is nearly retain top talent and creating a faster, more effective response
impossible to replicate; every organisation has envisioned its mechanism to change. Finding new leaders is critical to the
own “ideal” professionals. Yet, certain soft skills can suggest successful growth of the Organisation, and growth is greatly
the suitability of an individual for a leadership position, such as affected by the number of leaders we recruit.
the ability to take responsibility and get work done.
Succession Plan: The 3x3x3 Initiative
This initiative selects up to three employees for every
Training and Development
Management position. Three areas of development are
Turnover costs can range from anywhere between 10% to 30% identified, and the employees are groomed over a three-
of an employee’s annual salary. These costs can include direct year period to take on critical Management roles whenever
expenses such as recruitment and the expenses incurred due they become available. Our Development and Succession
to the loss of productivity and institutional knowledge. Programme, the 3x3x3 initiative, seeks to ensure all key
managers, including Senior Managers, middle managers,
Although there can be several reasons for leaving an and selected junior managers, have identified and developed
organisation, managers who focus on grooming their their successors.
successors can avoid many of these reasons. When a
manager recognises the potential in an employee with the
required personality traits, they build skills and leadership
training into their daily interactions with staff. This can have an
immense effect on the corporate culture, as staff understand
they are valued by their Manager and the Company. It fosters a
101 161 271 71
REPORTS INFORMATION
Employee Capital
Recruitment and Turnover %

18-28 29-39 40-50 50 Above
M F M F M F M F
Recruitment 44.37 20.62 23.57 3.47 3.99 1.04 1.91 1.04

Turnover 38.55 9.52 26.76 6.35 9.30 1.59 6.80 1.13
Diversity
Total Employees
Female Male Total
Number % Number % Number %
Key and Senior 2 0.07 57 2.04 59 2.11

Middle Management 10 0.36 110 3.93 120 4.29
Junior Management 35 1.25 178 6.36 213 7.61
Executive 14 0.50 62 2.22 76 2.72
Non-management 388 13.86 1,942 69.41 2,330 83.27
Total 449 16.04 2,349 84.00 2,798 100.00
Province Recruitment Turnover

Male % Female % Total % Male % Female % Total %
Western Province 202 35.01 93 16.12 295 51.13 171 38.78 52 11.79 223 50.57
Central Province 47 8.15 13 2.25 60 10.40 45 10.20 4 0.91 49 11.11
North Central Province 14 2.43 3 0.52 17 2.95 16 3.63 3 0.68 19 4.31
Eastern Province 7 1.21 3 0.52 10 1.73 15 3.40 1 2.03 16 3.63
Southern Province 38 6.59 14 2.43 52 9.01 38 8.62 7 1.59 45 10.20
North Western Province 45 7.80 11 1.91 56 9.71 21 4.76 5 1.13 26 5.90
Uva Province 11 1.91 4 0.69 15 2.60 16 3.63 5 1.13 21 4.76
Sabaragamuwa Province 35 6.07 8 1.39 43 7.45 14 3.17 3 0.68 17 3.85
Northern Province 27 4.86 2 0.35 29 5.03 23 5.22 2 0.45 25 5.67
Total 426 73.83 151 26.17 577 100.00 359 81.41 82 18.59 441 100.00
Permanent Temporary Total
Western Province 1,530 82 1,612

Central Province 232 29 261
North Central Province 94 4 98
Eastern Province 55 6 61
Southern Province 235 29 264
North Western Province 147 24 171
Uva Province 94 18 112
Sabaragamuwa Province 127 26 153
Northern Province 61 5 66
Total 2,575 223 2,798
72 5 13 25
Employee Capital
The Singer Training Philosophy
Catch the Vision of Identify Potential

Multiplication Look for potential in people. Early identification
of potential is the key to be focused and to offer
One cannot sell something unless they believe in it appropriate training to individuals.
Be Intentional Create an Environment

A conscious decision must be made to replace oneself.
Conducive to Producing
Multiplication should be a part of one’s strategy and
there must be a system of leadership recruitment.
Leaders
Commitment to creating an environment that is
conducive for learning and development is vital. An
Start Early environment that welcomes engagement could lead to
the creation of good leadership, shared responsibility
and collective growth.
Leaders must be replaced before they are needed.
Leaders must invest in their own personal growth. One
cannot lead unless they have been there.
Recruit
Humble Yourself Identify and recruit the best quality of people, adhering
to the ‘recruitment of quality’ principle.
Leaders must not fear new leaders being better leaders

than them. People must be allowed to shine under
one’s leadership; this will advance one’s ability to lead.
A team will follow their leader if there is a direct benefit
Lead for Life Change
to them and if they trust the integrity of the leader.
Identifying and nurturing potential leaders who have
the potential to be bold, mature and responsible
decision makers is part of our focus areas in creating
Share Responsibilities a quality workforce.
Early
Sharing responsibility at an early stage is the easiest
way to foster learning. When more ownership is given
to people on tasks, they will be more motivated to
participate and learn.
101 161 271 73
REPORTS INFORMATION
Employee Capital
Conditioning
Life
Creating ambience – producer
of an optimal aura supporting SINGER
productivity and liveability • 12,000 BTU – 24,000 BTU
• Blue fin technology
– the air conditioner.
• Refrigerant R410A
• Curved Design
• Copper Condenser
• Inverter
SISIL
• 9,000 BTU – 24,000 BTU
• Refrigerant R410A.
• Anti-corrosive blue fin
technology.
• Copper Condenser.
HITACHI
• R32 Eco green Refrigerant
• Filter Clean Indicator
• Blue fin technology
• Kaimin Function – Provides
optimum cooling without chill
effect.
74 5 13 25
Employee Capital
Learning Management System is known as “Selfy”

(Singer E-Learning for You!) and was launched on the
16th of January 2019.
Our Approach to Employee’s Progression and Territory Training

Career Development To increase customer satisfaction at the showroom level,
Singer places emphasis on the career development of it is vital to keep the showroom staff updated on the latest
employees, encouraging them to reach their personal and products and correct practices. In order to achieve this
professional goals. This serves to make their work lives objective, the Human Resources Development Department
more satisfying while ensuring the continued success of implemented territory trainings to diffuse knowledge effectively
the Company. among showroom staff. 1,185 showroom employees
underwent training and mentoring at the showroom level
As a responsible employer, we encourage our employees to through this initiative in the period during April 2018 –
Stay cool and enjoy pursue career development opportunities and continuously
support their professional growth. We continue to invest time
March 2019.
greater comfort and and money, even in challenging times, for the training and Training on Sales and Customer Care
professional development initiatives of our employees.
productivity with Aimed at retail showroom staff in the field, the programme
covers sales techniques, the importance of customer
Singer conducts six categories of training: external training,
Singer Sri Lanka’s operational training, product training, sales, customer care
care, and self-motivation techniques. The programme was
conducted covering all branches.
training, territory training, and service centre trainings. Most
air conditioning training programmes are conducted at the state-of-the-art
Industrial Sewing Machine Training
training centre at the Group’s Head Office. Field training is
solutions. conducted according to the convenience and requirement of Upon request, a selected number of Industrial Sewing Machine
the trainees and trainers. Furthermore, we have invested in trainings were conducted, in liaison with the Industrial Products
the infrastructure development of our regional service centres, Division. The programme covers the selling, assembling, and
which can accommodate approximately 25 employees at a time. basic troubleshooting of industrial sewing machines.
External Training Product Knowledge – White Goods

External training covers programmes such as seminars, These training programmes cover white goods including
conferences, and technical or function-specific training that refrigerators and deep freezers, washing machines, water
addresses the needs of employees that are identified during pumps, air conditioners, sewing machines, and ovens. These
the year. These programmes enable our employees to stay programmes focus on demonstrating the latest products such
up to date with industry best practices in varied functions. as Geo SMART refrigerators. Singer Plus, SISIL World, and
Line Managers have the flexibility to request specific training Singer Mega staff received this training, as did all new recruits
programmes based on requirements at any given time. as a part of their Singer Retail Academy (SRA) training.
External training is conducted by the British Council, IPM Product Knowledge – Brown Goods
Sri Lanka, Ceylon Chamber of Commerce, Employers’ This is a monthly programme which provides new recruits/
Federation of Ceylon, CIMA Sri Lanka, CA Sri Lanka, McQuire appointees such as Trainee District Managers, Trainee Branch
Rens & Jones, Life Skills Academy, and other resource Managers, Approved Dealers, Sales Agents, Customer
persons. Customised training programmes are organised Care Assistants and Shop Assistants with the necessary
by the HR Division based on employee’s specific job product knowledge of brown goods, such as televisions,
requirements. Training programmes cover areas such as audios, computers and other electronic devices. Apart from
motivational techniques, basic IT Knowledge, customer care, the product knowledge, trainees are also educated on the
marketing, and networking. latest technologies and the essentials of selling electronic
appliances.
101 161 271 75
REPORTS INFORMATION
Employee Capital
Latest Product Introductions management, auditing, best practices, and the Sales ERP
All Branch Managers and selected Assistants receive (Enterprise Resource Planning) module were conducted with the
training on newly introduced products. The programme was aim of enabling staff to provide superior service to our customers.
conducted to educate field staff about the latest products
in the aforementioned categories, as well as the essentials Service Centre Training Programmes
of selling consumer durables. The main products under the It is vital for the after-sales service staff of Singer to gain a
latest product introduction for the period during April 2018 – thorough and clear understanding of the technical aspects
March 2019 include the Singer Epic AI Televisions and latest of the products as well as customer service. Therefore, 256
Sony products. service personnel were trained in the last financial year.
Training Programme on Furniture Other Training Programmes

This training programme updates employees on furniture Orienting to the Organisation
operations and familiarises them with the product range. It is important and useful for our employees to have a macro
Participants were given a hands-on experience and real site picture of Singer’s operations. The formal induction and visits
experience in furniture assembly, dismantling, designing of to the retail outlets of the Company’s channels of distribution
pantry sets, basic drawing concepts, material selection, and offers a broad overview of the whole business upon joining.
product costing. They are given a basic understanding of the Guided visits to Company locations such as the factories and
communication process of the factory to deliver the goods to warehouses provide a much-needed real life visual element
customers on time. The programme was conducted with the and exposure that help them remember and relate better
support of the SSL factory, and 174 showroom employees through their jobs to the Organisation’s grander objectives.
received the training during the year. A programme to address this necessity was conducted for
staff who had not visited these locations.
Operational Training
Singer Retail Academy Diplomas Lean Management Training
The Singer Retail Academy, originally a Singer Asia initiative, The Management staff of the Group underwent Lean
aims to develop our employees who are involved in field Management Training in 2018. The training covered the basic
operations. The Academy currently conducts five diploma concepts of lean management and Six-Sigma. A Green
programmes for Customer Care Assistants, Auditors, Credit Belt Training Programme was also conducted for select
Officers, Sales Promotion Officers, and Executive Retail employees and shared further insight into lean Management
Managers respectively. The programmes consider aspects of concepts and Six-Sigma concepts. The training included a
each group that need to be strengthened for the effective and practical project to improve a current process or implement a
efficient functioning of operations. These aspects constitute new concept.
the modules of the programmes, culminating in 164 modules
being conducted under these diplomas that have benefited Language Development Programme
over 2,700 employees.
We believe that effective business communication is critical
to successful businesses. Selected staff members from the
Hire Purchase
credit and service functions underwent a 72-hour programme
Trainings on hire purchase were conducted for Branch staff to develop their linguistic skills.
across our Retail Channels to educate them and refresh their
knowledge on procedures and best practices of the hire New Initiatives
purchase payment option for customers. Over 805 employees were
trained under 23 Hire Purchase Training Programmes in 2018/19. The Human Resources Development Division of the
Organisation introduced an online platform for Shop Assistants
and Customer Care Assistants to gain knowledge of the
Western Union Training
products and daily operations of the branches through an
Singer offers the facility to transfer money through Western easy and cost-effective method. This Learning Management
Union. Trainings were organised for our Retail Channels staff to System is known as “Selfy” (Singer E-Learning for You!) and
familiarise them with the protocols involved in performing this was launched on the 16th of January 2019 by introducing a
service for customers. 319 employees underwent 14 Western mobile application named “Selfy” for the branch staff. It was
Union trainings. introduced in phases; the first phase was launched at the
start of the LMS launch, where 64 locations in Colombo were
Treasury, Audit, and System Training covered with over 500 users of the mobile application. Phase
Knowledge about the internal functions associated with the two will be launched in May 2019 where the Colombo and
sales process is important for our field staff. Trainings on cash Central areas will be covered with over 1,200 users.
76 5 13 25
Employee Capital
Investment in Training and Employees Trained 2018/19

Category General Product Operational External TTO Service SRA Sales and Total
Training Training Training Training Training Centre Training Customer
Training Care Training
Investment (Rs.) 3,400,287 1,911,349 3,580,690 2,070,158 – 1,402,571 1,321,387 5,658,771 19,345,213
No. of Programmes 29 78 61 50 213 12 170 26 639
No. of Participants 728 1,817 1,476 199 993 435 2,809 1,593 10,050
No. of Training Hours 7,039 14,325 13,036 1,679 8,124 2,040 11,953 9,460 67,656
Investment per
Participant 4,671 1,052 2,426 10,403 – 3,224 470 3,552 1,925
Average Training Hours by Employment Category

Employment category Male Female
Managerial 6.75 7.17

Executives 12.46 8.40
Others 7.37 13.88
Performance Appraisal Employee Facilities

All employees of the Group undergo performance appraisals We offer our employees a wide range of facilities, including
excluding interns, trainees, and temporary employees. The 42 days of leave per annum, 3-day excursions, uniforms,
process facilitates career management, mapping development staff discounts for Singer products, staff loans, training
paths, and enhancing the effectiveness and motivation of and development opportunities, and sports activities.
our employees. It helps to achieve better results, manage Some of these benefits vary by employee grade and nature
employees effectively, and identify the training needs of job functions, while some facilities are common to all
of individuals. employee categories.
Strategic information is provided to employees through the Ergonomics

Company’s internal magazine, “Sinera”, and staff meetings
Employees spend a significant amount of time at work.
with the Management.
Therefore, we ensure a conducive work environment. We
look into aspects such as workspace-to-employee ratio,
Special emphasis is given to managerial development as
air conditioning, noise pollution, desk and chair alignment,
we understand that a good leader is able to build a well-
sanitary needs, and provide adequate space for meals
integrated and effective team.
and relaxation.
Individual performance appraisals are conducted semi-anually
with the final appraisal at the end of every year. Each Line Professional Subscriptions
Manager assesses their subordinates’ strengths, weaknesses, As a company benefit scheme, subscription fees are paid to
and training and development needs, which are incorporated professional bodies on behalf of our employees. This helps to
into the training plan for the upcoming year. enrich their careers and many managers have benefited from
this scheme.
Divisional Heads at Singer are required to give a detailed
account of their division’s training requirements in the third Internship Programme
quarter each year. The Training Department schedules and Attracting and retaining the right talent within the Organisation
implements tailor-made programmes to address training is a key challenge. We have partnered with several state
needs, either through external training programmes or through and private sector institutions to initiate brand building
internally conducted programmes. activities of our Company. Singer’s internship programme
helps to attract youth into the Organisation and give them an
Evaluation techniques such as “Mystery Shopper” and “Call understanding of our Company, business practices, policies,
Centre Complaint” are used to assess field employees’ skill and vision for the future. This also acts as a CSR project for
levels and provide training as necessary. students following local and foreign degree programmes in
101 161 271 77
REPORTS INFORMATION
Employee Capital
Sri Lanka and pursuing professional qualifications (Chartered Housing Loans

Institute of Management Accountants, UK and The Institute Employees who have completed five years of service are
of Chartered Accountants of Sri Lanka). Students following eligible to receive financial assistance from the Company. This
Finance, Marketing, Supply Chain, and Human Resource assistance is given to cover the initial expenses of building a
Management degrees are incorporated into the programme. house while they await a loan facility from a financial institution.
Interns are given a comprehensive orientation of the
Organisation’s operations and in-depth practical training within
Distress Loans
their specialised areas. We are also focusing our attention
on evaluating our remuneration packages to be at par with Distress loans are given to employees in the case of
the industry. emergencies such as a sudden illness, death of a family
member, damage to homes due to floods or other natural
In an effort to retain talent within the Company, a new reward causes, urgent home repairs, or a family wedding, etc.
scheme to recognise achievements, with rewards such
as overseas tours for high scoring shop assistants, will be Vehicle/Motorcycle Loans
launched under the product knowledge evaluation programmes. Permanent employees in specified categories are eligible to
apply for interest-free or low-interest vehicle loans through the
Singer Management.
Employee Benefits
A wide range of benefits are provided to the permanent
Educational Aid Scheme
staff members of our Company.
Two mechanisms are in place to support employees with
their studies:
Medical Benefits
Medical expenses of our employees are reimbursed up to 1. A lump sum of Rs. 225,000 is granted on the condition
predetermined amounts calculated according to employee the employee serves the Company for eight years. The
grade. If the expenses exceed this amount, the employee and facility should be repaid only if the employee leaves the
the Company share the balance equally. However, in certain Company before the expiration of the eight years. This is
cases, Singer reimburses the medical expenses in full. We mostly granted for postgraduate studies.
also provide hospitalisation and OPD treatment coverage 2. Two-thirds of the cost of a particular course fee is
to all Management staff members and their immediate reimbursed by the Company on the successful completion
family members. of the final examination.
Accident Cover Death Donation

This facility is extended to staff members who are exposed In the event of the death of an employee, the family
to accidents either at the workplace or as a result of members of the deceased will receive a donation of
extensive travel. Rs. 50,000 in addition to six months’ salary. In the event
of the death of an employee’s spouse, child, parent, or
Travel Expenses unmarried sibling, the employee will be granted a sum of
Several facilities are extended to employees engaged in Rs. 25,000. The Death Donation Fund is a contributory fund
official travel, including vehicle maintenance, transport maintained by permanent employees.
allowances, and reimbursement of travel expenses.
Employees in the field staff and base staff categories Maternity
receive travel benefits based on their responsibilities and All female employees are entitled to maternity leave.
employment grade.
Number of
Employees
Discounted Sales
All staff members enjoy convenient access to all products Total number of employees who took maternity 22
marketed by Singer (Sri Lanka) PLC at special discounted leave in 2018/19
prices and easy payment schemes. Total number of employees who returned to work 13
after maternity leave ended in 2018/19
Lodging
Total number of employees who returned to work 12*
Expenses incurred by field staff members staying at after maternity leave ended and were still employed
Company-approved hotels while on official business 12 months after returning to work in 2018/19
are reimbursed.
*Five employees have resigned. Five employees are still on leave.
78 5 13 25
Employee Capital
We encourage open dialogue within our Organisation

as it builds trust among all employees.
Singer – A Great Place to Work held with the participation of all key senior and relevant subject
For the fifth consecutive year, Singer (Sri Lanka) PLC was managers. We maintain an open-door policy to facilitate a
recognised as one of the best places to work in Sri Lanka culture where employees of all levels can freely express their
in 2018 at an exclusive ceremony by Great Place to views and recommendations to the Management staff.
Work Institute.
We attribute Singer’s success to having a motivated
Each year, Great Place to Work (GPTW) conducts the largest workforce. Therefore, “doing good” cascades throughout the
annual set of workplace culture studies in the world to develop communities in which we conduct business.
and recognise high-trust workplaces.
Encouraging Open Dialogue
Singer continuously strives to create a great work ambience We encourage open dialogue within our Organisation as it
for its employees, through a range of team activities to builds trust among all employees. This is essential to drive
build camaraderie among departments. Activities include operational excellence and strengthen employee integrity and
staff training and development programmes, recreational credibility. Sincere and comprehensive dialogue on any issue
and cultural activities, and the engagement of families of in the Company helps builds trust.
staff members.
Promoting Employee Performance
Singer introduced flexi hours in certain locations to improve Several employee and team recognition schemes are in place,
the work-life balance of employees. The annual family outings, such as the annual conference, and the list of winners are
Christmas parties, and children’s art competitions are some published in the Sinera magazine.
of the most popular events in the Company calendar.
Grievance Handling
Retaining our best talents through developing and retaining
Singer follows a formal process in handling grievances. There
top performers and the dynamic Management team have
were no grievances about labour practices reported through
made Singer the employer of choice; three of our Executive
the formal grievance mechanism during the year under review.
Directors initially joined the junior grade of the Company and
rose up the ranks over their tenures.
Equal Remuneration
Many of the Company’s initiatives have contributed to creating Remuneration is determined through a transparent
a vibrant team of happy and committed people driving the best performance evaluation mechanism. Hence, there is
customer experiences. These include, establishing the world’s no disparity between the salaries of men and women in
first Corporate Rotaract Club, having an active Corporate our Organisation.
Toastmasters Club, and holding inter-departmental competitions
including a novel talent show titled “Singer Got Talent”. Occupational Health and Safety
Safety and Health Committee
Sporting Activities Taking into consideration the magnitude of our Group and
Singer encourages employees to participate in a range of the diversity of our activities, several proactive and reactive
sports activities including cricket, badminton, volleyball, and measures have been implemented to ensure the highest
netball. Employees can participate in Mercantile and Inter- standards of occupational safety and health. Our employees
Departmental competitions held every year. are the backbone of our Organisation and we strive to
ensure they are treated with great respect and care. A wide
spectrum of health and safety measures, including hygiene
HR Policies and Procedures
and accident-safety practices, are implemented by our Safety
Employees can communicate with the Board through their and Health Committee, whose members are representatives
respective Divisional Heads. Monthly management review of the entire Company and meet once a quarter or in
meetings, sales review meetings and operations meetings are case of emergencies.
101 161 271 79
REPORTS INFORMATION
Employee Capital
A New
“Spin” to WHIRLPOOL WP-WM31278
Life
• 14 Kg Capacity Fully Auto Top Loader
• 360 Tumble Motion
• Care Move Technology
• 6th Sense Technology
A single resource that frees up • In-Built Heater
‘space’ in a busy life – ‘wash,
rinse, spin’ relegated – to the
washing machine.
SAMSUNG - WD80K6410
• Capacity - 8 Kg (Wash), 6 Kg
• AddWash™ Option - Simply add
during wash with AddWash™ door
• Eco Bubble Technology
• Diamond Drum
• Sanitise Your Clothes With
Air Wash Technology
SISIL – SL-FLE047R
• Fully Auto 7kg Front Loader
• Pre-Wash
• Extra Rinse
• Child Lock
• Extra 15 Minute Quick Wash
80 5 13 25
Employee Capital
Monitoring Health and Safety Performance Employee Engagement

The Committee assists in the development, monitoring, Singer Sri Lanka Toastmasters Club
and review of health and safety policies and procedures In line with the Toastmasters mission, the Singer Sri Lanka
of the Group. They also look into proposals, changes to Toastmasters Club since 2011 has nurtured, supported,
the workplace, policies, work practices, and procedures and empowered our membership in developing their
which may affect the health and safety of the employees. communication and leadership skills by introducing and
A successful health and safety programme requires strong initiating thought provoking themed meetings and providing
Management commitment and worker participation. Therefore, ample opportunities for interaction and networking through
the Committee actively promotes the importance of health and joint meetings. This expands their ability to think out of the
safety among employees. box and creativity, thus leading to greater self-confidence and
personal growth.
Benefits of Promoting a Healthy Workforce
The Organisation receives numerous benefits through a The Club continued to engage members in 2018 with creative
well-managed health and safety programme, including a themed meetings including “All that is Irish” commemorating
positive and caring image, improved staff morale, reduction St. Patrick’s Day, Chinese New Year, and providing a fun
in staff turnover and absenteeism, increased productivity, environment with outdoor meetings and creative themes such
reduction in healthcare/insurance costs, and risk of fines and as “Mad Hats and False Noses” at The Arcade, Independence
litigation to the Company. Square, and an Area Meeting based on the Avurudu theme
where the Toastmasters meeting given the Avurudu turn.
Employees benefit from a safe and healthy work environment, The Club continued to engage with other clubs through joint
Singer Sri Lanka enhanced self-esteem, reduced stress, improved morale, meetings such as “Cupids of Area C2” with HSBC TMC who
increased job satisfaction, increased skills for health organised a Valentine-themed joint meeting, AMW with a
offers modern protection, improved health, and a sense of well-being. Father’s Day meeting, and Sampath Bank with a Christmas-
themed meeting.
washing machines Factory Workforce Injuries in 2018/19
Toastmaster Rolinka Perera was selected to compete in the
that clean clothes Accidents Division C Impromptu Speech Competition and members had
gently but Cut injuries 48

the privilege of participating in Ovation 2018 which provided
opportunities for networking.
thoroughly. Eye injuries

Other
22
7 The Singer Sri Lanka Toastmasters Club will continue to
empower and enrich our members with the core values of
Total 77 Respect, Integrity, Service, and Excellence.
Installation Ceremony of Singer Toastmasters Club

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Employee Capital
Rotaract Club
The Rotaract Club of Singer was the first corporate Rotaract Club in the world. The 2018/19 tenure marked the successful 5th
installation ceremony of the Club held at the Company’s Head Office. The Club has always had the passion and focus in serving
society. Several successful projects have been organised by the Club to support the needy through avenues such as community
service, public relations, club service, and international service. The Club has also been dedicated to developing the skills of
their members along with the Company staff. Industry experts have conducted sessions for members to develop their leadership
and public speaking skills and becoming good citizens to our nation. The Rotaract Club of Singer will continue its service to
society, members, and Company staff.
5th Installation Ceremony of Rotaract Club of Singer
New Year at Singer

The New Year was embraced by our employees with the
prayers and blessings of all religions at the Head Office
and branches.
Sinera Magazine
The official newsletter of Singer Sri Lanka, the Sinera magazine
is distributed to our employees free of charge to keep them
informed of the activities of our Organisation. Published twice
a year, the magazine is packed with corporate news, Company
bulletins, and photographs.
The Sinera Facebook page has 931 employees who are active
on the page.
Kids Art Competition 2018/19

The Kids Art Competition was organised for the 8th
consecutive year. Over 150 children participated in three
differently themed categories, with prizes awarded to all
participants and special prizes for the winners.
Kids Art Competition 2018
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Employee Capital
Gent’s Picnic 2018/19 Annual Christmas Party

The gents of Singer Sri Lanka enjoyed their annual excursion We held two Christmas parties at Golden Rose Hotel in
at the Amaya Lake Hotel in Dambulla in two batches from 8-10 December 2018, due to the large number of participants. Over
June and 22-24 June. Participants visited the Pidurangala 1,750 employees and their families participated in the parties
Temple in Sigiriya while on their holiday, and a total of 460
gents joined the excursion.
Sports and Recreational Facilities

The Singer Inter-Departmental Cricket Tournament 2018 was
Ladies’ Picnic 2018/19 organised by the HR team at the P. Saravanamuthhu (Oval)
Grounds in August 2018. The event saw the participation
150 ladies and 50 children under the age of 12 participated of 54 gents’ teams and 8 ladies’ teams. The Singer
in the annual excursion to the beautiful beaches of Passikuda Finance Accounts Division were the winners under the
at Hotel Amaya Beach during 18-20 May. Participants enjoyed Gents category and SLMO A Team were winners under the
boat rides and dives to see the amazing corals on the shallow Ladies category. The Singer Digital Media – Team A and the
seabed, Fancy Dress competitions, a Baila competition, SLMO B Team became runners-up in the Gents and Ladies
Drama competition, and other fun games. categories respectively.
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REPORTS INFORMATION
Employee Capital
The Singer Finance Team were crowned champions at the A collective agreement for the upcoming two years was signed
Inter-Departmental Badminton Team Championship 2018, between the Management and the factory employees of
while Sales were 1st runners-up, Operations were 2nd Singer Factory Complex Piliyandala with the presence of the
runners-up, and SLMO 1 were 3rd runners-up. representatives from the Inter-Company Employees Union in
March 2018.
Singer Sri Lanka represented two major tournaments in
Mercantile Cricket organised by the Mercantile Cricket A collective agreement between the Regnis Factory
Association (MCA). The Singer “A” team played for the MCA management and the Branch Union of CMU was signed in
“B” division Limited Overs Tournament and Singer “B” team March 2018 for the next two years.
participated in the “G” division 25 Overs Tournament. The
Singer “A” Team couldn’t qualify for the semi-finals in the Approximately, 33% of Singer employees are covered by
League Tournament but spotted 6th place in the points table these collective agreements. In addition to signing Collective
with three match wins. Singer Masters also participated in the Agreements, the Management meets with branch unions to
MCA Over 40 Masters sixes and lost the quarterfinal against discuss any concerns and provide satisfactory solutions.
Union Assurance. The cordial relations maintained with our employees prevent
disputes arising in the workplace.
The Singer Soccer Team participated in the Mercantile Football
League Tournament division “D” held during March-April 2019.
Employee Recognition
Singer won two matches against Commercial Bank and HSBC
and lost against NTB and WNS. Digital Media Convention
The Singer Digital Media Convention was held in July 2018 at
The Singer Hockey Team became “B” division champions in the Shangri-La Hotel, Colombo under the theme, “Leading
the Mercantile Annual Seven-a-side hockey tournament held excellence”. The convention acknowledged and highlighted
in October 2018 and won the Challenge Trophy sponsored by the journey of the Digital Media channel to be the market
Singer (Sri Lanka) PLC. leader in the smartphone business, with a keynote from
former CEO Mr. Asoka Peiris and an address by Mr. Alex Lin,
CEO of Asia Pacific Region Terminal Department – Huawei
Technologies Lanka (Pvt) Ltd.
Mr. M. Ramiz Rashid, Territory Promotion Officer – Pettah,

received the award for Territory Promotion Officer, and
Mr. Rangana Naotunna, Territory Manager – South, received
the Territory Manager award.
Collective Agreements
Three separate Memorandums of Settlement (MOS) signed
in 2016 and were effective for 2018 with the following branch/
parent unions pertaining to a salary revision:
zz Commercial and Industrial Workers Union Clerical Branch –
applicable to clerical allied and technical grade employees.
zz Commercial and Industrial Workers Union Non-Clerical
Branch – applicable to manual workers.
zz Inter-Company Employees Union – applicable to manual
workers attached to our factories.
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Employee Capital
Annual Service Awards

The Annual Service Awards ceremony was held in April 2018
at the BMICH to recognise the longstanding service of Singer
staff. 274 employees received awards and gift vouchers under
six different categories, and three employees – Mr. Janaka
Mendis, Mr. Sujith Ariyapala, and Mr. Gamini Attanayake –
were appreciated for 35 years of service to the Company.
Year of Service Number of

Employees
5 134
10 65
15 12
20 36
25 14
30 10
35 3
Total 274
Appreciation for 35 years of service to the Company

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REPORTS INFORMATION
Employee Capital
The
Ultimate
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a couple of ‘clicks’ you’re DELL INSPIRON 5570
15-inch laptop delivering an exceptional
accessing and communicating viewing experience, a head-turning finish and
with the world – the laptop. an array of options designed to elevate your
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Fully immersive, completely impressive
Responsive performance and
Seismic Storage
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Designed for the real world –
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ASUS ZENBOOK
FLIP 14 UX461UN
The world’s thinnest 2-in-1 laptop
with discrete graphics
Slim, stylish and sophisticated
Precision-engineered versatility
Unbounded vision with the
NanoEdge display
SINGER DUO 2 IN 1
DETACHABLE NOTEBOOK
A detachable 2-in-1 is Notebook 3 essentially
a slate with a keyboard dock
You can remove the keyboard portion of the
tablet and leave it behind when you desire
maximum portability.
Powered by Intel Processor and
Genuine Windows 10 OS
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SOCIAL AND ENVIRONMENTAL CAPITAL
Supporting the educational development of Sri Lanka

has long been a key aspect of Singer’s CSR agenda.
As a responsible corporate citizen, Singer works for the believe that our employees can provide a better perspective
benefit of society. We have established close ties to the on the progress of our CSR agenda and seek their input to
communities in which we operate in through our extensive enhance our CSR efforts.
branch network. We aim to support these communities
through our community support projects by giving a portion Feedback from our employees keeps them engaged and
of value addition back to them. improves our CSR practices on an ongoing basis. Increasing
accessibility to corporate sustainability leads to enhanced
Moreover, we take care to mitigate any damage to the employee involvement and ultimately elevates the Company’s
Singer Sri Lanka environment and work to create and contribute to a more
sustainable environment. We constantly assess our
performance. Employees benefit from developing new skills
that can boost their performance and thrive in an environment
offers a wide manufacturing processes for their environmental impacts
and regularly evaluate the processes of our suppliers
which fosters a responsible and socially alert workforce.
range of mobile and manufactures. Upon approval of a proposed CSR project by the Company’s
CSR Committee, the related Singer Group companies ensure
computing Memberships in Associations
the project is financed and resourced until completion. The
initiator of the project takes on the responsibility of kick
solutions so you are The Singer Group of Companies is affiliated with various starting activity around the project and ensuring its success.
business and public policy associations in our area of The Company also solicits proposals from our communities.
never at a loss when business, as well as community associations. We are
members of the following associations: The Singer CSR Committee evaluates, oversees, and
you’re on the go. zz The Ceylon Chamber of Commerce
monitors all CSR projects carried out by the Company to
maintain best practices in our dealings with the communities,
zz Sri Lanka-China Business Council and takes on the responsibility of ensuring that our CSR
zz Import Section of the Ceylon Chamber of Commerce activities cover the entire spectrum of economic, social, and
environmental concerns.
zz Sri Lanka-Canada Business Council
zz The Employers’ Federation of Ceylon Engagement in philanthropic activities not directly associated
zz CSR Lanka Guarantee Limited to our employees can have a significant influence in their
work attitudes and behaviours. Singer has benefited greatly
zz The Industrial Association of Sri Lanka by facilitating employees to engage in CSR projects they
are passionate about, as evidenced by the commitment
Corporate Social Responsibility (CSR) and passion they exude. Branches and departments that
implement CSR projects have proven to perform better in the
Corporate Social Responsibility is an important aspect of
Organisation due to the strong team spirit nurtured through
Singer Sri Lanka’s long-term strategy. In a world where
involvement in CSR activities.
consumers are increasingly conscious of where their products
are sourced from and employees seek a sense of pride,
fulfilment, and substance from their workplace beyond a pay Singer’s Commitment Towards Education
cheque, there has to be a congruence of values between the Supporting the educational development of Sri Lanka has
Company and its employees. long been a key aspect of Singer’s CSR agenda. Singer is
of the belief that we have to go beyond the traditional focus
We encourage our employees to submit written proposals for on responsible supply chain management, waste reduction,
a CSR project of their choosing, be it a one-off project or an and water stewardship, because the nation is in dire need of
activity that can be integrated into the business process. We development of a sustainable pool of talent that will ultimately
101 161 271 87
REPORTS INFORMATION
benefit the nation as a whole. We actively seek to elevate the Sipmansala Seminar Series
level of education in our nation through meaningful action, “Sipmansala ” project which started in 2013 and extended
particularly in rural communities. around the country have been conducted successfully during
the period covering 70 schools under 29 centres of Institute of
Learning is a lifelong process and supporting the educational Higher National Diploma In Engineering.
development of Sri Lanka’s children and youth is an
extremely gratifying endeavour for us. We have forged strong The seminar series conducted sharing knowledge among
relationships with rural communities and teachers, parents, more than 3,000 students of less facilitated schools Island
and officials who work tirelessly to upkeep the education wide and they were provided stationeries including file covers,
sector in the country. We believe education is one of the model papers, past papers, pens, compass sets, short note
greatest gifts one can give to society and are especially proud books and refreshments.
to engage our wide network to take the gift of education to
rural Sri Lanka in the hope of building a promising future with
educated and accomplished individuals.
School Projects
In 2018/19, we renewed our commitment to education by continuing our efforts to uplift the education of schools and
systematically building their infrastructure, supplying furniture, appliances, stationery, musical instruments, and more.
School Description
Lahiru Scholarships Foundation Providing 500 Instruments

Kehelwarawa Vidyalaya Donation of five Computer Tables
Mahanama Vidyalaya, Vavuniya Donation of 300GPD RO Purifier
Alakoladeniya Buddhist Vidyalaya, Kurunegala Construction of a Water Tank and Toilets
Wanduramba Central College, Wanduramba Donation of Musical Instruments
Dadagamuwa Junior School, Veyangoda Donation of Stationery Items
Aluthwewa Kumara, Vidyalaya, Anuradhapura Donation of Musical Instruments
Veeriyagama Maha Vidyalaya, Suriyawewa Providing Water Supply System
Weediyawatte Senarath Junior School, Udugampola Donating Library Books
Tissamaharama Vidyalaya, Tissamaharama Providing Water Supply/Purification System
Handugala Maha Vidyalaya, Handugala, Matara Providing Desks and Chairs
Thalakiriyagama Maha Vidyalaya, Thalakirigama Construction of Toilets
Pussella Navodya School, Naula Repairing Multimedia and providing a Water Supply System
Weralugahamula Vidyalaya, Rakwana Renovation of a Library
Dayagama Sinhala Vidyalaya Dayagama Providing a Water Supply System and Water Pump
Dadagamuwa Junior School, Veyangoda Donation of 100 chairs, filing cabinets, desks, book racks
Sri Dhammarathana K.V. Ihala Diyadora, Wewagama Donation of Library Books
Walala A. Ratnayake Madya Maha Vidyalaya, Menikhinna Donation of Track Kits
Home Science Centre at National Institute of Education, Maharagama Donation of Drawered Unit, Base Unit, Oven Base Unit, Sink unit
Maspotha Maha Vidyalaya, Maspotha Donation of 100 Ving Chairs
Sri Rahula Maha Vidyalaya, Ratmalana Supply of a Refrigerator
Hartley College, Point Pedro Rebuilding of School
Pore Junior School, Athurugiriya Renovation of a Library, Desk, and Chairs
Galthambarawa Vidyalaya, Polonnaruwa Supplying 17 pairs of School Shoes
Sri Jinaratana Bhikshu Vidyala Providing 40 units of Unic Audio Systems
R/Bla/Laduyaya Vidyalaya, Belihuloya Providing Library Cupboards and Books
Meewanapalana Maha Vidyalaya, Horana Providing Drinking Water System
Horahinna Maha Vidyalaya, Walasmulla Providing Library Cupboards and Books
Lahiru Scholarships Foundation Providing School Uniform Materials to students in the rural area
C W W Kannangara Vidyalaya, Colombo 08 Construction of a Playground
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2013, donating its first two Dialysis CRRT machines to the

Polonnaruwa Hospital five years ago. Rs. 100/- from each
purchase of a water filter at Singer showrooms across
the island contributed to the project. Each machine costs
approximately Rs. 3 million and the project has set up eight
machines at hospitals across the country, including the
Colombo National Hospital, Jaffna Hospital, Wathupitiwala
Hospital, and Medawachchiya Hospital.
The Thirst for Life project also conducts awareness and

irradiation programmes for water-related infections in rural areas
with the aim of uplifting the health standards of our communities.
“Thirst for Life” – donating dialysis CRRT machine
Donations of televisions were made to the District General

Hospital, Hambantota, and an air conditioner unit to the
Cardiac Unit of Base Hospital, Wathupitiwala. Humanitarian
assistance was provided to the National Cancer Hospital,
Maharagama by the Digital Media Company.
Team Digital Media sponsored a meal and provided rations to

the Children’s Ward and selected adult patient wards at the
National Cancer Hospital, Maharagama in April 2018.
Other Projects
“Sipmansala” Seminar Series 2018 Donation of Equipment to Archdiocesan Apostolate for
Drug/Alcohol Demand Reduction Service
Health Sector Equipment donated include TVs, pedestal fans, ceiling
Singer helps to ease challenging health issues faced in fans etc.
Sri Lanka such as chronic kidney diseases and diabetes.
In 2018/19, Singer donated a Dialysis CRRT machine to Flood Relief Programmes
Batticaloa Teaching Hospital under the “Thirst for Life” We experienced floods in several areas in the island due to
programme. The Batticaloa region is greatly affected by kidney bad weather in May 2018. Hence, those of the Rotaract Club
disease and patients transferred from the nearby regions of Singer Sri Lanka, Rotaract Club of Colombo North, Rotaract
too are treated at the Batticaloa Teaching Hospital. As the Club of Colombo Fort collaboration of Student Activity Club
hospital’s Dialysis CRRT machine alone was not sufficient A.P.I.I.T. got together to help the flood victims.
to meet the demand, there had long been the need for
another machine. They collected water bottles, dry rations, sanitary items,
medicines and other necessities from friends and colleagues.
Among the CSR projects carried out by Singer, The money collected was used to buy necessary items for
“Thirst for Life” is a prominent programme. The project the victims.
aims to provide Dialysis CRRT machines to identified
hospitals in need in the country. The project started in Stationery was donated to flood affected children in Madampe.
101 161 271 89
REPORTS INFORMATION
Home Science in Schools the next generation of cricketers. Our Singer League is a long-
Singer successfully completed the 4th Phase of the “Singer standing cricket league held in partnership with the Sri Lanka
Soopa Shasthra ” programme jointly with the Ministry of Schools Cricket Association. Singer not only provides financial
Education. The programme aims to boost the standard of assistance but also equipment, with a focus on rural schools.
Home Science education in schools across the country while We also support the development of school players into
also paving the way for school leavers to step into a career in professional status with our association with the Mercantile
the fast-growing hospitality industry. Cricket Association, supporting the MCA Premier League and
MCA Knockout Tournament.
Singer initiated the Singer Soopa Shasthra programme in
partnership with the Ministry of Education in 2015 with a
focus on supporting the Home Science subject in schools by
emphasising the importance of nutritious home cooking as
a vital part of a healthy lifestyle and a happy family in today’s
busy world. The programme provides guidance on how to
use modern kitchen appliances to quickly create healthy, tasty
meals, thereby empowering Sri Lankan families to cook right
and eat right without sacrificing traditional values and taste.
Over 1,000 home science teachers had received training

whilst 150 more schools-in-need across all nine provinces
received Singer appliances to boost their home science classes.
Sports
Singer is Sri Lanka’s largest sports promoter. For over 20
years, we have backed several sports events at the school,
mercantile, and national level, providing all Sri Lankans the
platform to excel in the sport of their choice. Over the years,
Singer has developed sports infrastructure and uplifted
Sri Lankan sportsmen and women, especially in rural Sri
Lanka. We also assist in the upkeep of sporting facilities,
support international tournaments, and nurture the passion for
sports in children. Our continued active participation in sports Singer Schools Rugby
has uplifted our relationship with communities as well. Singer is a proud supporter of rugby at all competitive levels
and has been involved in the development of the sport
Singer believes in the power of sports to turn lives around and for over a decade. We provide infrastructure assistance to
create well-rounded future leaders and ultimately a developed schools: everything from scoreboards to building rugby
nation. Singer continued its long-term relationships with stadiums. The Singer Schools Rugby League is one of our
Sri Lanka Schools Rugby Associations, Sri Lanka Schools biggest investments in sports, amounting to over Rs. 50
Cricket Association, Mercantile Cricket Association, Gajaba million each year. We also sponsored the Bradby Shield, the
Super cross, Hill Club Tennis Tournament, and Royal College oldest competitive rugby encounter in Sri Lanka, for the 28th
Hockey Tournament. consecutive year, and supported the Kandy Sports Club.
We are greatly involved in the areas of Rugby and Cricket

in order to impact youth and sports in a larger and more
meaningful scale. Apart from the above-mentioned sports,
over the last 20 years, we have also looked to utilise our
resources to enhance other areas of sports. We have been
involved in school, mercantile, and national level sporting
events in hope of giving the youth of our nation more
opportunities to excel in a sport of their choice.
Singer Schools Cricket

Singer has been associated with Sri Lankan cricket since 1996
with our support for the World Cup winning national team. We
support cricket at school and club levels, helping to develop
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Singer Fashion Academy Grievance Handling and Sexual Harassment Policies

The Singer Fashion Academy conducted 40 free workshops These two policies ensure the emotional well-being of our
to raise awareness amongst youth about the fashion industry. employees. The grievances policy provides employees the
The Academy hosted over 800 participants through the free right to forward their grievances and dissatisfactions to the
workshops. The key purpose of the workshops was for future Management and obtain a fair hearing. Our sexual harassment
fashion entrepreneurs to fully understand the scope and policy takes note of the distinct nature of a claim and provides
opportunities available in the field of fashion design and to disciplinary measures, depending on the degree of sensitivity
create a pathway for them to become independent creative of the matter at hand.
thinkers who can come up with innovative design collections
to manage a successful fashion business in an evolving and
competitive industry. The workshops are uniquely tailored to
Code of Business Conduct
involve both conceptual and trend driven design work through All Key and Senior Managers are bound by the Company’s
experimentation with creative cutting techniques, traditional written Code of Business Conduct, which is an agreement
pattern cutting, textiles, research, illustration, conceptualisation signed as part of their written Contract of Employment. As
and visualisation techniques, sketching, colour study, and per the agreement, the signatory is responsible to comply
understanding the use of different fabrics. This was done in line with the Code and ensure employees reporting to them also
with the “13-year guaranteed education programme” initiated comply with the Code. The Code of Business Conduct is
by the Ministry of Education where students were offered 26 signed annually to refresh their knowledge on the contents
vocational subjects after their ordinary level examinations. and update themselves on new clauses and amendments to
Fashion Designing is one of the 26 subjects offered under the Code.
the programme and Singer Business School offered their
support in conducting an awareness programme for selected Whistle-blower Policy
principals of government schools as well. Singer Business
School is planning to continue with the programme this year. The Whistle-Blower Policy illustrates procedures for any
employee of the Company to make a written or verbal
complaint on any experiences or suspicion of illegal or
Public Policy unethical employment or business practices exercised by
Singer does not fund or make contributions of any kind a colleague in any capacity in the governance hierarchy.
to political parties, politicians or related institutions. The All employees upon induction into the Group are taken
Company is regularly invited by the Government of Sri Lanka through the policy procedures and assured of confidentiality
to submit proposals for consideration when formulating the and anonymity.
National Budget.
The Group takes necessary actions to prevent corruption or illegal
activities and the Management takes necessary actions on the
Government Assistance above, where it is implemented for Whistle-Blower procedures.
The Group did not receive any assistance from the
Government during the year.
Non-discrimination
There were no incidents of discrimination reported in the
Anti-competitive Behaviour and Compliance Company in the period under review.
The Company did not encounter any legal action for anti-
competitive behaviour, anti-trust, and monopoly practices
during 2018/19. We always obtain the necessary local
Fostering Human Rights and Equal Opportunity
authority approval and strictly adhere to rules and regulations Singer is recognised as a compassionate and benevolent
pertaining to display of materials, audio/video materials, company. People’s affinity towards Singer draws many
and branding among other factors, when conducting our requests from religious, educational, and other institutions, as
marketing/sales promotional activities. well as individuals.
Through our island-wide reach, we are present in some of

Human Rights the most remote areas of our country, giving us a unique
Singer follows employment practices which enshrine human perspective on the issues that affect the lives of less fortunate
rights. As such we facilitate freedom of association, strict citizens. Our employees are often the biggest champions
elimination of all forms of compulsory labour, abolishment of community relations projects and initiatives, and we
of child labour, and elimination of sexual harassment in encourage them to propose solutions that answer their own
the workplace. There were no incidents of human rights communities’ needs.
reviews/grievances reported during the fiscal year.
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REPORTS INFORMATION
Environmental Performance the accumulated solid waste isn’t dumped in naked lands or
Singer Factories Integrating Sustainable Eco Practices bodies of water, and that they enter the chain of accepted
solid waste management systems handled by reputed parties.
Singer aspires to be the leading appliance retailer in Sri Lanka.
The solid waste that is collected is used for wood briquetting,
How we go about achieving that vision is of utmost importance
burners, and filling up of marsh lands.
to us. We care about the lasting impact we leave on the
planet and the communities we operate in. We take every
effort to create a more sustainable environment, extending to Sawdust Collection
even the smallest procedures, reflecting our visionary, green Singer actively makes efforts to reduce, reuse, and recycle
contributions to society. The products we manufacture and saw dust, smoke, paint fumes, wood cut-offs, particle boards,
market are increasingly eco-friendly. We constantly evaluate plastic, and iron scraps. These waste materials are channelled
our manufacturing processes for their environmental impacts into water troughs and thereafter collected, treated, and
and actively promote recycling and waste management disposed of in a responsible manner. A dust collection system
processes within our Organisation. is installed in our sofa factory and prevents air pollution
through a fine filtration process.
As a responsible corporate citizen, Singer has undertaken
several initiatives to mitigate any damage to the environment. A third-party supplier handles the recycling of saw dust
Our factory in Piliyandala is licensed under the Environment disposed in our Piliyandala factory to be used as fuel for
Protection Licenses (Section 23B of the National Environment boilers and ovens. The supplier collects the saw dust thrice a
Act No. 47 of 1980) and has acquired the licenses and week from the factory from specially fitted chambers designed
certifications required to comply with Central Environmental to collect the sawdust. The process enables us to support the
Authority (CEA) regulations. Our Regnis (Lanka) PLC supplier and optimise the use of waste from our manufacturing
refrigerator plant converts refrigerators to R600 high-efficiency processes. In recognition of our efforts to reduce Sri Lanka’s
and energy-saving GEO and ECO products, and is well ahead carbon footprint, we received a token of appreciation from the
in the region for implementation of practices that have zero Central Environmental Authority.
impact on the ozone.
Total waste – Singer Regnis Regnis Singer Group
Non-hazardous (Sri Lanka) (Lanka) Appliance Industries
The Piliyandala factory staff adhere to environmentally friendly (kg) PLC PLC (Pvt) (Ceylon)
practices to preserve the lush environment surrounding the Limited PLC
premises. Noise pollution, air pollution, and water pollution

are controlled, with solid waste management and chemical Reuse 267,750 – 45,102 6,980 319,832
management practices followed with energy and resource Recycling 462,044 136,152 9,963 14,991 623,150
conservation kept in mind.
Composting – – – – –
We strictly follow guidelines by local and international Recovery 219,400 56,700 – 44,605 320,705
authorities for the storage and transportation of certain Incineration
hazardous materials we use for production and store all (mass burn) – – 6,070 – 6,070
chemicals in a sealed warehouse with restricted access.
The furniture factory and agro factory undergo two Landfill 8,668 920 – – 9,588
independent environmental audits annually for the renewal Other 563,218 3,345 24,385 14,104 605,052
of the CEA certification. This signifies our stance as an
Total 1,521,080 197,117 85,520 80,680 1,884,397
eco-friendly company.
In addition to ensuring the factory is compliant with all Island-wide e-Waste Collection Points
environmental certifications, we also carry out all our internal As a respected and responsible distributor of electrical
operations in conformance with these guidelines. For instance, appliances in Sri Lanka, our e-waste management campaign
our conventional paint booths were replaced with water was well-received by the general public and our customers.
curtain paint booths, thus reducing air and toxic emissions Through our wide network, we placed e-waste collection bins
caused by spray painting. Sanding activities are carried out in all Singer Plus, SISIL World, Singer Mega, Singer Home
Showrooms, and Singer Service Centres. Awareness was
in an enclosed area equipped with a dust extraction system,
raised through Below-The-Line (BTL) promotions, Public
facilitating a safe environment for employees working in this
Relations (PR) articles, print advertisements, posters,
area while carrying out main operations without polluting the and billboards.
air. Solid waste, such as saw dust, that is a by-product of
our operations is removed in an environmentally safe manner
through responsible third-party contractors in consultation
with the relevant authorities. We take steps to ensure that
92 5 13 25
Biodegradable Packaging Trade-in Offers to Reduce Carbon Footprint

As part of Singer’s eco-friendly initiatives, all Singer factories As the largest consumer durables retailer in the country, Singer
have replaced the use of rigifoam as a packing material with strives to instil environmentally friendly habits in our customers
corrugated cardboard. The expanded use of biodegradable while nurturing strong relationships with them. Trade-in offers
materials, including in shopping bags, is being researched provide consumers with convenient opportunities to not only
and planned. recycle their old electronics but also avail of discounts on the
latest products. This can motivate customers to trade-in their
Continuing e-Waste Management Leadership old electrical appliances for newer, more energy efficient and
In line with the Government’s vision and Singer’s corporate environmentally products which contribute to the reduction of
business values, we strive to minimise the effects of our their carbon footprint.
operations and that of our customers through sustainable
business models. In 2010, Singer signed a Memorandum Pioneering and Promoting R600a Gas Refrigeration
of Understanding with the Central Environmental Authority
to assist local authorities in the management of e-waste In line with the Singer Group, subsidiary Regnis (Lanka) PLC
on a national scale. The Singer Group follows UN BASEL adopts our commitment to creating and sustaining a greener
convention regulations in collecting, transporting, and storing future in Sri Lanka. Regnis manufactures the Singer GEO and
e-waste for recycling. SISIL ECO series of energy efficient refrigerators. The Singer
GEO range was the first range of refrigerators to adopt R600a
Singer strives to make recycling electronics as easy as gas technology, a 100% environmentally friendly substitute for
purchasing them. To date, we have removed a significant the HFC refrigerants that contribute heavily to the depletion
quantity of e-waste which would otherwise have the potential of the ozone layer, thereby contributing to global warming.
to cause damage to the environment and the well-being of The move to R600a was made two decades in advance of
communities. We spend a significant amount annually to the mandatory deadline for its adoption in 2040 under the
ensure the proper disposal of e-waste through approved Montreal Protocol, further highlighting our commitment to
e-waste disposal companies, and we increase our capacity of
the environment.
e-waste collection every year.
The Company promoted its R600a gas refrigerators heavily
Category Volume of e-waste disposed by Singer
in Sri Lanka, emphasising its benefits and importance in
(Units)
marketing communications. The Company discontinued the
Televisions 47,692 sale of R134a gas refrigerators and completely switched to the
manufacture of R600a refrigerators, contributing to advancing
Refrigerators 10,354 the nation’s steps towards energy efficiency.
Washing Machines 6,607
Others 4,094 Promoting Energy Efficient Inverter Technology
Singer has heavily promoted products based on inverter
Given below are details of the usage of recycled materials for technology that can consume 30-50% less energy than
Regnis (Lanka) PLC in 2018/19: non-inverter-based products. Although inverter technology
is more expensive, we promote these products due to
Total (kg)
their high energy efficiency that can not only contribute to
HIPS Offcuts 172,998 lower electricity bills but is crucial for a greener planet. The
most popular inverter technology-based products include
Metal Offcuts 58,515 Singer Inverter air conditioners, Samsung refrigerators, Beko
Plastic and Polythene 14,988 refrigerators, Hitachi refrigerators, and Hitachi air conditioners.
Cardboard 84,771
Aluminium 181
Copper 380
Total 331,833
Percentages of recycled material used is as follows.

zz Singer (Sri Lanka) PLC – 6%
zz Regnis (Lanka) PLC – 10%
zz Regnis Appliances (Pvt) Limited – 3%
101 161 271 93
REPORTS INFORMATION
When VOLGA SOFA

• Fabric upholstered
you’re not
• Treated oak wood frame
• Cushion – PU foam and polyfiber
standing
• 3(2R):1R:1R combination
Sitting, lounging, reclining – times

when you need real quality and
comfort around you – times when
you need “good”... furniture.
DAYSTAR SOFA
• Sofa with 3:1:1 combination
• Treated rubber wood frame
• Fabric and PU upholstered
• Leg : Polypropylene plastic
BELIZE SOFA
• 2 seater sofa with storage
• 3 step conversion sofa, lounger &
bed position
• Straps to keep it down when it is in
the upright position
• Frame – wood base and plywood
• Legs – solid wood
94 5 13 25
Materials Used by Weight/Volume

Renewable Materials
Singer (Sri Lanka) PLC Regnis (Lanka) PLC Regnis Appliances (Pvt) Ltd Singer Industries (Ceylon) PLC
Timber SQFT 649,938 HIPS (Plastic) KG 244,501 PP (Plastic) KG 515,376 Steel KG 2,173,921
Particle KG 1,223,924 – – – GPPS (Plastic) KG 156,385 Wood KG 470,191
Boards
Casting KG 98,392 – – – ABS (Plastic) KG 123,323 – – –
MDF KG 89,900 – – – – – – – – –
Corrugated Nos 54,409 Corrugated Cartons KG 194,721 Corrugated Cartons KG – – – –
Cartons
Non-renewable Materials
Singer (Sri Lanka) PLC Regnis (Lanka) PLC Regnis Appliances (Pvt) Ltd Singer Industries (Ceylon) PLC
Diesel Litres 22,512 Hermetic Nos. 88,512 PCB for Nos. 244,291 Plastic KG 479,881
Compressor Fully Auto Washers
Motors KG 179,520 PCM/VCM KG 1,099,613 Steel Tub for Nos. 4,460 Polythene KG 2,700
Steel Sheet Fully Auto Washers
Engines KG 32,000 Evaporator Nos. 88,512 – – – Alloy KG 67,289
Make a statement Plate
with a wide range Edge

Bands
Mtr 589,688 Isocyanate KG 232,817 – – – – – –
of furniture from PU NOS 119,220 Polyol KG 177,336 – – – – – –

Foam
Singer Sri Lanka
to match your Total Weight of Materials used to Produce and Package Refrigerators at Regnis (Lanka) PLC
(Weight) kg 2018/19 (Weight) kg 2017/18
taste and lifestyle. Model Direct Materials Packing Materials Total Weight Direct Materials Packing Materials Total Weight
RGS 150 15,037 1,233 16,270 38,400 3,148 41,548

ECO 55 363,256 26,710 389,966 418,302 30,758 449,060
GEO 182S/SM 185 242,239 22,915 265,154 420,838 39,809 460,647
ECO 72/ECO 72 WR 776,295 69,668 845,963 1,041,261 93,447 1,134,708
GEO 200D/SM 205 664,390 58,870 723,260 1,181,011 104,647 1,285,658
ECO 192/WR 192 1,478,762 131,030 1,609,792 1,765,413 156,429 1,921,842
GEO 242D/SM 255 232,732 22,432 255,164 307,598 29,648 337,246
ECO 245 249,208 24,020 273,228 383,834 36,996 420,830
GEO 260NF/SM 265 429,088 37,312 466,400 368,322 32,028 400,350
ECO 251NF/251 WR 480,286 41,764 522,550 552,000 48,000 600,000
GEO 262 I/252 I 61,824 5,376 67,200 142,554 12,396 154,950
GEO 282 NF 612 48 660 37,638 2,952 40,950
GEO SM 267 NF 45,034 3,916 48,950 – – –
RBC 501 20,160 264 20,424 14,868 3,147 18,015
Total 5,058,922 445,556 5,504,478 6,672,039 593,405 7,265,444
101 161 271 95
REPORTS INFORMATION
Total Electricity and Diesel Consumption from Non-renewable Sources by Regnis (Lanka) PLC
Energy Consumption 2018/19 2017/18
Diesel (Litres) 9,128 15,400

Electricity (kWh) 1,070,214 1,334,354
Diesel Energy Consumption in Kj (million) 340 574
Electricity Consumption in Kj (million) 3,852 4,803
Total Energy Consumption in Kj (million) 4,192 5,377
Diesel Energy Intensity Ratio Kj/unit 3,105 3,479
Percentage Reduction in Diesel Consumption per unit (%) 12.05 71.8
Electricity energy intensity ratio Kj per unit 35,156 29,117
Total energy intensity ratio 38,261 32,597
Consumption by Source
Non-Renewable Sources Singer (Sri Lanka) Regnis (Lanka) Regnis Appliances Singer Industries Singer Finance Group
PLC PLC (Pvt ) Ltd. (Ceylon) PLC (Lanka) PLC
Electricity (kWh) 15,938,000 1,070,214 1,278,470 408,696 806,984 19,502,364

Water (Litres) 67,095,010 18,616,573 5,034,999 1,704,000 12,734,815 105,185,397
Diesel (Litres) 22,512 9,128 5,020 – – 36,660
Water Withdrawal by Source

Water withdrawal by Source (Litres) Singer (Sri Lanka) Regnis (Lanka) Regnis Appliances Singer Industries Singer Finance Group
PLC PLC (Pvt ) Ltd. (Ceylon) PLC (Lanka) PLC
Ground Water 6,804,000 12,959,000 – 1,278,000 – 21,041,000

Municipal Lines 60,291,010 4,748,000 5,034,999 426,000 12,734,815 83,234,824
Total 67,095,010 17,707,000 5,034,999 1,704,000 12,734,815 104,275,824
Water Discharge by Destination

Water Discharge by Destination (Litres) Singer (Sri Lanka) Regnis (Lanka) Regnis Appliances Singer Industries Singer Finance Group
PLC PLC (Pvt ) Ltd (Ceylon) PLC (Lanka) PLC
Municipality Sewerage,
Drainage Lines 54,202,200 1,537,000 4,774,599 1,704,000 12,734,815 74,952,614
To Ground through Soakage Pits 12,892,810 16,170,000 260,400 – – 29,323,210
Total 67,095,010 17,707,000 5,034,999 1,704,000 12,734,815 104,275,824
Reduction in Energy Consumption at Regnis

Diesel (Kj) Electricity (Kj)
million million
Reduction in energy consumption at Regnis (Lanka) PLC per month 233.77 79.23
Reduction in Diesel Consumption and CO2 Emissions at Regnis

2018/19 2017/18
Diesel Saving in the Factory (l) 6,272 2,413

CO 2 Emission per Diesel Litre (kg) 2.68 2.82
Reduction in carbon footprint at Regnis (Lanka) PLC is 39 tCO 2e in 2018/19.

96 5 13 25
CO 2 Emission details are as follows.
tCO 2 Scope 1 Scope 2 Scope 3
Singer (Sri Lanka) PLC 0.45 60.81 38.74

Singer Finance (Lanka) PLC – 90.42 9.58
Singer Industries (Ceylon) PLC 2.68 87.75 9.58
Regnis (Lanka) PLC 4.86 84.52 10.62
Regnis Appliances (Pvt) Limited 1.65 88.92 9.43
Environmental Investment
Environmental Investment (Rs.) Singer (Sri Lanka) Regnis (Lanka) Singer Industries Group
PLC PLC (Ceylon) PLC
Prevention and Environmental Management Cost 4,167,009 54,545 335,287 4,556,841

Investment in Special Initiatives – Waste management,
Emission Treatment etc. 1,667,009 – 384,494 2,051,503
Total 5,834,018 54,545 719,781 6,608,344
Total units of production is as follows.
Singer (Sri Lanka) Regnis (Lanka) Regnis Appliances Singer Industries Group
PLC PLC (Pvt) Ltd (Ceylon) PLC
Total units of Production/Service 110,122 109,575 77,753 117,362 414,812
The Battle for Solar Energy the use of only A-grade panels which come with a 25-year
During a time where the world has come together in search of guarantee and the most efficient inverters which come with a
a solution for the global energy crisis, Sooryabala Sangramaya 10-year guarantee. Singer uses the highest quality European
(The battle for solar energy), a power generation project which brands that make the most suitable and efficient products
was implemented by the Sri Lanka Sustainable Energy Authority in terms of DC cables, surge protection, and other tools to
(SLSEA) under the purview of the Sri Lankan Ministry of Power get the maximum efficiency from these solar power systems.
and Renewable Energy, has been deemed a success. Singer PV systems come with a long-term guarantee and
more information can be obtained from our Singer Plus, Singer
Solar power has been recognised as the most suitable and Mega, Homes, and SISIL branches across the island.
environmentally friendly solution to the energy crisis prevalent
in the island. The Government has taken an active role in this Grievances on Environmental Impacts
initiative by introducing low interest loan schemes with the
The Singer Group believes in the importance and value of
support of the CEB and LECO.
protecting and preserving biodiversity. To this extent, the
Company does not own, lease, or manage any operational
For 12 years, Singer has joined hands with SLSEA to provide
sites in or adjacent to protected areas and areas of high
the ultimate solution for the nation’s solar power needs.
biodiversity value outside of protected areas. The Group takes
Singer Solar System has taken an active involvement in the
every effort to prevent environmental harm.
Sooryabala Sangramaya which is implemented under the
purview of the Ministry of Power and Renewable Energy and
No grievances were filed on environmental impacts through
SLSEA and can be introduced as the most suitable solution to
formal grievance mechanisms during the reporting period.
satisfy every Sri Lankan’s solar power needs.
Neither were any monetary or non-monetary sanctions
imposed for non-compliance with environmental laws and
The initiative has been successful in designing and
regulations. All suppliers are required to adhere to the Singer
implementing Solar PV systems on any scale, from the
Code of Conduct and environmental standards.
smallest home to large scale factories, with the expertise of
the most skilled engineers in the industry. The initiative strives
maintain a strict adherence to the highest standards with
101 161 271 97
REPORTS INFORMATION
Dream
Weaver
MC2868
• 18 stitch patterns
• 6mm Stitch width
• Four Step button hole
It’s probably the world’s
• Stable and durable alloy body
first ever single appliance • Dual operating Facility
that allows you to (Motor Driven & Manual)
“weave a dream” – bring • Carrying case provided
materiality to vision – the

sewing machine.
MC8280
• 08 Built in stitches
• 04 Step Buttonhole
• Snap on Presser Feet
• Colour Code Treading System
• Free Arm Sewing
MC990
Auto Threader
• Tread Cutter
• 25 Built in stitches
• 04 step button hole
• Free Arm Sewing
• LED Light
• Drop Feed
98 5 13 25
Product Responsibility We use customer feedback and market trends to develop

A combination of the highest customer benefit, the new products with the support of our long-standing third-
highest safety standards, and maximum environmental party local suppliers. Customers are assured about the
and climate compatibility are what constitute product quality of our products which are subject to stringent quality
responsibility for Singer. assurance by our Quality Assurance Division, manned by
professional engineers. From sample evaluations to post-sale
We strive to continuously provide consumers with products evaluations, our products are continuously enhanced with a
and services of world class repute. Therefore, the safety of lengthy life cycle.
our products is of paramount importance through all stages
of their life cycle, including production, product use, disposal, Organisation Supply Chain
and recycling.
Own Manufacturing Facilities
We adopt the same considerations where product sourcing is The Singer Piliyandala Factory is equipped with the latest
concerned, where we measure for environmental compatibility technology. These modern manufacturing facilities allow us to
and energy efficiency through the entire product life cycle. operate locally on a large scale and we constantly upgrade
our facilities to offer the best manufacturing processes.
We inform our customers about the properties of our products
and conditions of usage, and actively ensure product safety Highly Reputed Suppliers
throughout their entire life cycle to minimise adverse impacts As part of our agenda to deliver the best products to our
on people and the environment. customers, we ensure sourcing is done only from reputed
Singer sewing Approximately 23% of revenue of Singer is generated from
suppliers. Taking into consideration the suppliers’ ranking
in the industry, we visit their factories and evaluate their
machines have products manufactured in our state-of-the-art local factories. credibility before entering into business agreements with
The factories are certified by ISO Standards and are manned them. Some of our original equipment manufacturing sources
enabled individuals by the country’s most qualified and skilled production include Polytron, Indonesia; Skyworth, Galanz, TCL and
managers, engineers, and manual workforce, who are capable Huawei, China; Pensonic, Malaysia; Arçelik, Turkey; and
and businesses of producing advanced and innovative products. Whirlpool, India.
to transform their Details of suppliers and payments are as follows.

innovative ideas Profile of Suppliers Singer (Sri Lanka) PLC Regnis (Lanka) PLC Regnis Appliances (Pvt ) Ltd Singer Industries (Ceylon) PLC Group
into creative Number

of
suppliers
Payments
(Rs.)
Number
of
suppliers
Payments
(Rs.)
Number
of
suppliers
Payments
(Rs.)
Number
of
suppliers
Payments
(Rs.)
Number
of
suppliers
Payments
(Rs.)
masterpieces Small and Medium
for over a century. Scale Suppliers
Large Scale Suppliers

1,228
659
3,855,259,464
26,966,608,222
366
524
1,125,043,475
2,705,357,493
220
65
32,981,514
1,842,843,945
230
32
90,065,144
412,562,498
2,044
1,280
5,103,349,597
31,927,372,158
Sub Contractors 33 89,625,132 36 112,217,827 10 54,611,243 4 4,853,991 83 261,308,193
B2B suppliers – – – – – – 8 7,982,707 8 7,982,707
Total 1,920 30,911,492,818 926 3,942,618,795 295 1,930,436,702 274 515,464,340 3,415 37,300,012,655
Profile of Suppliers Singer (Sri Lanka) PLC Regnis (Lanka) PLC Regnis Appliances (Pvt ) Ltd. Singer Industries (Ceylon) PLC Group
Payments to local suppliers 4,317,209,707 1,777,839,078 376,298,950 191,474,961 6,662,822,696
Payments to international
suppliers 26,594,283,111 2,164,779,717 1,554,137,751 323,989,378 30,637,189,957
Total 30,911,492,818 3,942,618,795 1,930,436,701 515,464,339 37,300,012,655

101 161 271 99
REPORTS INFORMATION
Product Sourcing for Our Own Brands

We employ strong measures to source products from the
world’s leading manufacturers by evaluating them on key
areas. These include industry ranking, company reputation,
management style, financial stability, quality consciousness,
delivery capabilities, and more.
Freedom of Association and Collective Bargaining

There have been no operations and suppliers identified in
which right to exercise freedom of association and collective
bargaining may be violated or at significant risk.
Compliance
Customer Privacy
During the year, the Group did not encounter any substantiated
complaints regarding breaches of customer privacy and losses
of customer data.
Health and Safety of Products

There were no incidents of non-compliance with regulations
and voluntary codes concerning the health and safety impacts
of our products and services during the year.

and voluntary codes concerning product and service
information and labelling during the year.
There were no incidents of non-compliance with laws and

regulations in the social and economic area.
Marketing Communications
and voluntary codes pertaining to marketing communications,
including advertising, promotions and sponsorships during
the year. The Company does not engage in the sale of
banned products.
Product and Service Usage

The Company was not subject to monetary fines for
non-compliance with laws and regulations concerning the
provision and use of products and services and labelling
during the year.
100 5 13 25 35
101 161 271 101
REPORTS INFORMATION
STEWARDSHIP
THE SINGER GROUP COMPLIES WITH ESTABLISHED
BEST PRACTICES IN CORPORATE GOVERNANCE
AND ENSURES THE HIGHEST ETHICAL STANDARDS
IN THE CONDUCT OF ITS BUSINESS.
102 148
CORPORATE AUDIT COMMITTEE
GOVERNANCE REPORT
150 151 152 154

REMUNERATION NOMINATION RELATED PARTY RISK MANAGEMENT
COMMITTEE REPORT COMMITTEE REPORT TRANSACTIONS REVIEW
COMMITTEE REPORT
102 5 13 25 35
ANNUAL REPORT 2018/19 Stewardship
CORPORATE
GOVERNANCE
Group/Company ensures to comply with established best The following developments took place during the period:
practices in corporate governance and ensures the highest
ethical standards in conduct of its business. The Board adopts zz Mr. S.H. Goodman (in terms of Section 211 of the
core values and standards which set out the conduct of staff Companies Act No. 07 of 2007 was appointed as a Non-
in their dealings with shareholders, customers, colleagues, Executive Director with effect from 26th June 2018)
suppliers and other stakeholders. Once the core values are zz Mr. D.K. de S. Wijeyeratne (Appointed as Independent
set and communicated to all levels of the Organisation, the Non-Executive Director with effect from 1st April 2018)
Group/Company is of the belief that the highest standards of
integrity will be maintained in business. zz Ms. O. Gunewardene (Appointed as Independent
Non-Executive Director with effect from 1st August 2018)
Governance Policy and Framework zz Mr. H.A. Pieris – Group CEO/Director (Resigned with effect
from 31st October 2018)
Governance framework covers both corporate governance
and the business governance. Corporate governance and zz Mr. M.H. Wijewardene (Appointed as Group CEO/Director
business governance are interrelated processes and one with effect from 1st November 2018)
process is always linked to and dependent on the other zz Mr. G.J. Walker (Resigned with effect from 29th November 2018)
process. Business governance enables us to focus on areas
of value creation to the business. Corporate governance zz Mr. M.H. Wijewardene (Ceased to be Alternate Director to
process is to safeguard and ensure that the Group/Company Mr. G.J. Walker with effect from 29th November 2018)
achieve business performance maintaining a balance between zz Mr. L.N.S. Kumar Samarasinghe – (Ceased to be
accountability and assurance of the business process.
Alternate Director to Mr. H.A. Pieris with effect from
Thus, we believe our business governance and corporate
31st October 2018. Appointed as Alternate Director to
governance are interlinked to each other as depicted below:
Mr. M.H. Jamaldeen with effect from 22nd January 2019)
In line with the above governance framework, the Group/ zz Mr. H.P.S. Perera (Appointed as Alternate Director to
Company believes that successfully run business enterprises Mr. M.H. Wijewardene with effect from 22nd January 2019)
are founded on a set of fundamental qualities – those that
embed transparency, accountability and responsibility within Minimum Public Holding
the core of its business operations. Translated into action, The public holding of the company as at 31st March 2019
the Group’s/Company’s strong core qualities and guiding was 7.72%, which is below the minimum requirement of
corporate governance functions ensure that we remain “law 20% as specified by the Listing Rules of the Colombo Stock
abiding”, strictly adhering to the laws and regulations of the Exchange (CSE).
country. Business integrity and accountability to stakeholders
are top of the mind factors that we inculcate right across – In terms of Rule No. 7.13.3 (iii) (ii) of the Listing Rules, the
from the Board of Directors to the shop floor. Company sought an extension from CSE on complying with
the minimum public holding on the basis that the public
Statement of Compliance holding was reduced consequent to the Mandatory Offer
made under the Takeovers and Mergers Code 1995 (as
Singer Group is fully-compliant with the Code of Best
amended) in September 2017.
Practices on Corporate Governance issued in year 2017 by
The Institute of Chartered Accountants of Sri Lanka as well
In response, the CSE by their letter dated 5th February 2019
as the Rules on Corporate Governance published by the
has communicated to the Company that an exemption has
Colombo Stock Exchange, except which are specifically
been granted up to 2nd August 2019.
mentioned in the corporate governance report. In addition to
the above, our Subsidiary Company Singer Finance (Lanka)
PLC is fully-compliant with the requirement set out by the
Finance Companies Act No. 78 of 1988 and subsequent
amendments and Finance Companies Corporate Governance
Direction No. 3 of 2008 issued by the Central Bank of
Sri Lanka (CBSL).
161 271 103
FINANCIAL SUPPLEMENTARY
REPORTS INFORMATION
Corporate Governance
Purchase of shares
On 15th October 2018, Hayleys PLC purchased the balance and approved by the Board. The Group CEO and Executive
35,562,883 (9.47%) ordinary shares held by Retail Holdings Committee review the strategic plan and budgets against the
(Sri Lanka) BV in Singer (Sri Lanka) PLC at a price of Rs. 47.00 actual performance on a monthly basis and at more frequent
per share upon Retail Holdings (Sri Lanka) BV exercising their intervals, as needed and Chairman and Board of Directors
option to sell its shares to Hayleys PLC as previously review actual performance at each Board meeting.
agreed at the time of the Mandatory Offer made in 2017.
After accepting this offer, Hayleys PLC together with its Group
IT Governance
Companies, holds 90.43% of Singer (Sri Lanka) PLC.
IT governance process of the Company ensures that IT
objectives are aligned with the business objectives that will
Business Governance meet its strategic and operational objectives. IT governance
Business governance (performance governance) is linked from is an integral part of the corporate governance process and
Company’s Vision Statement to Final Objective level of grass which deals primarily with optimising the linkage between
root level. Business governance process is started at the point Strategic Directions and Information Management of the
of preparing the annual plan and annual plan is focused on Company. Competent and dedicated staff are deployed to
future strategic direction, long-term objectives, medium-term support this need. Company investment in IT resources covers
objectives and short-term set targets. Annual plan is initially resources operated and managed centrally and resources
approved by the Parent Company and subsequently reviewed deployed in various places. IT resources include ERP system,
other related business systems, Internet, emails and other
Company-wide data communication system.
Impact of the IT governance to diverse functional areas of the Company is driven by certain core objectives which are set below:
Compliance Investing in licensed software deployed in compliance with Intellectual Property Law with a view
to educate and mandate compliance to such laws throughout the Company.
Operational Efficiency Streamlining of inventory management, logistic management and credit management process
so that integrity is maintained across the value chain through near real-time processing.
Prudent Capital Expenditure All major IT investments are carefully evaluated by the IT team and built into the business plan
and carefully scrutinised at the planning level, and approval is granted by the Board.
Customer Convenience Ensuring process efficiencies to increase the contribution to customer convenience.
Green IT Protecting the environment by reducing print through migration to emails, SMS, social media
and soft copies.
Governance Structure
External Regulations Internal Regulations
Companies Act No. 07 of 2007 Articles of Association of the Company
Continues Listing Requirements of the Colombo Stock Exchange Singer Finance Manual
Code of Best Practice of Corporate Governance issued in year 2017 by Code of Ethics, Human Resources Policies
The Institute of Chartered Accountants of Sri Lanka and Procedures
Directives/ Regulations of the Securities and Exchange Commission of Sri Lanka. Information Technology and Other Internal
Manuals
In case of Subsidiary Company Singer Finance (Lanka) PLC, requirements set out Standing Instructions, Policy and
by the Finance Companies Act No. 78 of 1988 and Subsequent Amendments and Procedures (P&P)
Finance Companies Corporate Governance – Direction No. 3 of 2008 issued by
the Central Bank of Sri Lanka
104 5 13 25 35
As diagrammatically presented above, Group governance

structure is set up to create a distinction between the functions
of the Board and Management team but ensuring effective
cooperations and communication between two groups.
Shareholders Group Chief Executive Officer exercises triangular linking role
between Board, Executive Management Committee and other
Stakeholders, i.e., Shareholders, Employees, Customers,
Community and Environment. Group’s Chief Executive Officer
is the main communication link with the Board and Executive
of Parent Compnay
Management Committee. He also acts as a defacto officer
Board of Directors
Board of Directors to maintain a fair role on behalf of shareholders, employees,
Committee
Audit
customers, community and environment.
Business Ethics
The Group enshrines the highest ethical standards in the
Group Chief
conduct of its business affairs and its Board of Directors are
Executive Officer
tasked with ensuring that the resultant regime of exemplary
Nomination
governance across all aspects of business are in the best

Committee
interests of stakeholders. Ethically correct conduct comprising

integrity, honesty, fair play and loyalty pervade all Group
actions.
Executive Committee
Transparency is encouraged in all public disclosures, as well
as in the way business and communication take place with all
Transactions Review
stakeholders. A “whistle-blowing policy” introduced internally

Related party
Committee
in 2009 has increased the level of transparency towards a

wider dimension.
Employees
All employees are bound by the Company’s written Code of
Ethics that includes the following aspects:
zz Exercise honesty, objectivity and diligence when performing
ones duties.
Remuneration
Customers
Committee
zz Avoid situations where personal interest might conflict

with the interest of the Company; and if so, disclose such
interest in advance.
zz Maintain confidentiality of commercial and price-sensitive
information.
Community
zz Work within applicable laws and regulations.
zz Safeguard the Company’s assets.
zz Avoid conduct that will reflect badly on the person
concerned or the Company’s image.
Environment zz Strictly avoid giving or accepting any kind of bribe, either
directly or indirectly.
zz Strictly avoid making contributions for political funds, either
directly or indirectly.
zz Strictly avoid any kind of sexual harassment.
161 271 105
REPORTS INFORMATION
The Company has implemented a formal whistle-blowing Environment

procedure and encourages any employee who suspect Social responsibility is regarded as a fundamental aspect
wrongdoing at work, whether by Management, peers or any of the Company’s strategy and it is one of the core values
other employee, to raise their concerns. of the business. As stated in our value statement ‘we make
every effort to ensure that the environment is protected
Other Policies and conserved for future generations’ and in line with this
core value, the Company is committed to minimising any
In addition, the Company implements policies covering –
adverse impact the conduct of the business may have on
zz Recruitment and selection the environment. Further to that, this core value encourages
and ensures our products, processes and business does not
zz Financial integrity
unnecessarily damage the environment.
zz Use of Company property including computers
zz Non-harassment in the workplace The Company is proud to present in this Annual Report,
based on the Global Reporting Initiatives (GRI) Guidelines.
zz Environment, safety and health
The Company’s Social and Environment Management
zz Security of IT system Initiations are more-fully described on pages 50 to 99 and
pages 283 to 288.
Responsibility to Customers
The Company maintains an island-wide network of outlets Code of Best Practice on Corporate Governance
and provides a wide choice of products and brands to its We set out below the corporate governance practices adopted
customers, augmented by easy payment opportunities. and practiced by the Company, the extent of adoption of
Outstanding customer care and world class after-sales service the Code of Best Practice on Corporate Governance issued
are two of seven propositions substantiating our claim to be in year 2017 by The Institute of Chartered Accountants of
a world-class company. What is salient about the widespread Sri Lanka and the Rules set out in Section 7.10 of the Colombo
nature of our distribution is that in most instances, a consumer Stock Exchange Listing Rules on Corporate Governance.
living in any part of the country need not travel more than
10 km to obtain goods and services from the Company.
Section A
Products sold by the Company are of the highest quality This section covers Company’s extent of adherence to the
and are rigorously tested prior to introduction. The Company requirements of the Code of Best Practice on Corporate
extends warranties on its products. It maintains an island- Governance issued in year 2017 by The Institute of Chartered
wide network of service centres and franchise agents to Accountants of Sri Lanka. This reflects Company’s governance
facilitate product repairs. Customer grievances, if any, are in following eight fundamental aspects:
handled promptly and solutions provided with exchange of zz Directors
merchandise in the unlikely event of a manufacturing defect.
zz Director Remuneration
Among developments relevant to customer relations in the zz Relationship with Shareholders
year under review was the growing popularity of our Contact
zz Accountability and Audit
Centre established in 2006 to deal with customer complaints
and product performance issues as well as to provide zz Institutional Investors
customer-related information. In addition to this, the Company zz Other Investors
conducts customer-loyalty programmes and Customer-Service
Clinics across the country where any customer can relate their
zz Internet of things and cyber-security
grievances or obtain service for their product on site. zzEnvironment, society and governance

In service to our differently-abled customers, wheelchair ramps These are discussed in the sections that follows.
and other such infrastructure modifications and facilities are
being added to the Company’s retail outlets progressively as
part of routine showroom renovations.
106 5 13 25 35
A. Directors
A.1 – The Board
Main Principle
Every public company should be headed by an effective Board, which should direct, lead and control the company.
Corporate CA Sri Lanka Requirement of the Code Compliant with the Code Compliance
Governance Code
Principle Reference
Board A.1.1 The Board should meet The Board meets at least four times a year and additional 
Meeting regularly, at least once meetings are held as necessary. The Board Subcommittees also
in every quarter. met on a regular basis. Circular Resolutions are passed as per
the requirements. The Board met four times during the period
ended 31st March 2019. Details of the meetings and attendance
of the members are set out on pages 146 and 147. The meetings
convened by the Board Subcommittees during 2018/19 are also
provided on pages 146 and 147.
The regularity of A board pack containing all relevant information is submitted to 

Board meetings and board of directors.
the structure and
process of submitting
information should
be agreed to and
documented by
the Board.
Responsibility A.1.2 Board should be The Board is responsible for the strategic planning process of 
of the Board responsible for matters the Company. This includes the responsibility for the formulation
including: of the strategic vision and mission of the Company, setting the
overall corporate policy and strategy, monitoring performance
Ensuring the
and reviewing risks and major investments. The Board also takes
formulation and
on the added responsibility of directing Company performance
implementation of
towards achieving the best results possible and increasing
a sound business
shareholder value. The Board sets the broad parameters of the
strategy.
Company’s business. The Company’s business units are then
tasked with their application, in achieving specific targets and
objectives.
Appointing the Not applicable since Group CEO is the apex executive in charge 
Chair and the Senior of the day-to-day management of operations and business of the
Independent Director if Company.
relevant.
Ensuring that the CEO The profile of the CEO is provided in this Annual Report on page 18. 
and Management
While the Board of Directors is ultimately responsible for the
Team possess the
operations and financial soundness of the Company, the
skill, experience
day-to-day management of the Company is entrusted to the Group
and knowledge to
CEO. There is extensive staff participation in decision-making at all
implement strategy.
levels, with strategic recommendations on material matters flowing
to the Board for final decision.
The Group CEO chairs the Executive Committee. The Executive
Management Committee, comprising all Key Managers who are
divisional heads and two Deputy Directors and Group CEO meets
every week for performance review and decision-making.
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REPORTS INFORMATION
Governance Code
Principle Reference
The Company’s Annual Plan addresses the requirements of all business

units and divisions. This ensures that the entire Company follows the
set plans and objectives as articulated in the Annual Plan. These in turn
become the primary objectives of the Management Committee which
is represented by all Heads of Divisions, and are shared with Divisional
Heads and Heads of all SBUs. The Management Committee together
with the Heads of Divisions and SBUs have the autonomy and freedom to
translate these objectives to specific goals that are achievable.
Key programmes are identified by the Group CEO for each year
in line with the Annual Plan after they are discussed at Executive
Committee meetings. A review of progress on plan implementation
is a key item on the agenda of the monthly Management Review
meetings.
Ensuring the adoption Succession planning is given due recognition in the corporate 
of an effective CEO and culture. Effective succession planning is a criterion in the
Senior Management performance appraisals of the Senior Management and Key
succession strategy. Management.
Addition to that, as part of the development and succession
programme, the “3x3x3” initiative seeks to ensure that all positions
of Key Managers, Senior Managers, Middle Managers and Junior
Managers have been identified and are groomed for succession.
Approving budgets Budgets and major capital expenditure are reviewed and approved 
and major capital by the Board.
expenditure.
Determining the The Board has agreed and reserved power to determine matters 
matters expressively including approving of major capital expenditure, appointing the
reserved to the Board secretary to the Board and seeking professional advice as and
and those delegated when needed.
to the Management
Limits of authority and financial delegation are agreed by the
including limits of
Board in order to manage affairs efficiently.
authority and financial
delegation.
Ensure effective The Board has delegated this responsibility to the Audit Committee. 
systems to secure
The Audit Committee is empowered to review and monitor the
integrity of information,
financial reporting process of Singer Group so as to provide
internal control and risk
additional assurance on the reliability of Financial Statements
management.
through a process of independent and objective review.
As such, the Audit Committee acts as an effective forum in 

assisting the Board of Directors in discharging their responsibilities
on ensuring the quality of financial reporting and related
communication to the shareholders and the public.
108 5 13 25 35
Governance Code
Principle Reference
Audit Committee framework, composition, responsibilities and duties

are given in the Audit Committee Report on pages 148 and 149.
Risk Management framework is given in the Risk Management
Report appearing from pages 154 to 159.
Ensuring compliance The Board follows a policy of strict compliance with laws and 
with laws, regulation regulatory requirements and ensures that stakeholder interests are
and ethical standards. considered in key corporate direction.
A compliance checklist is provided to Audit Committee and Board
members in every quarter by the Compliance Officer indicating
compliance with applicable laws, regulations etc.
The Company has also issued a Code of Ethics and Human
Resources Policies and Procedures applicable to all employees.
All stakeholders’ The Board adopted core values and standards which set out the 
interests are conduct of staff in their dealings with shareholders, customers,
considered in community, environment, suppliers and other stakeholders.
corporate decisions. Once the core values are set and communicated to all levels of
the Organisation, there is a belief that the highest standards of
integrity are maintained in business.
The Board relies on the integrity and due diligence of Key
Managers, Senior Managers, Auditors and Advisors to oversee
the Group’s overall performance objectivities, financial plans and
annual budgets, investments, financial performance reviews, risk
management and corporate governance practices.
Recognising Development of sustainable value is embedded in the 

sustainable business corporate strategies.
development in
corporate strategy,
decisions and activities
and consider the need
for adopting “integrated
reporting”.
The Company’s values The Group enshrines the highest ethical standards in the conduct 
and standards are of its business affairs and its Board of Directors are tasked with
set with emphasis on ensuring that the resultant regime of exemplary governance across
adopting appropriate all aspects of business are in the best interests of stakeholders.
accounting policies Ethically correct conduct comprising integrity, honesty, fair play
and fostering and loyalty pervade all Group actions.
compliance with
Accounting policies are reviewed annually in light of changing
financial regulations.
business requirements, evolving international and local accounting
standards and industry best practice. As mentioned above,
significant emphasis is placed on compliance with applicable
regulations. Group continues to adopt same accounting policies
adopted in year 2017/18 and which are given as part of the
Financial Reports on pages 184 to 209.
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REPORTS INFORMATION
Governance Code
Principle Reference
Establish a process of monitoring Performance and progress of strategy 

and evaluation of progress on implementation, budgets, plans and risks are
strategy implementation, budgets, monitored through a formal reporting process.
plans and related risks.
Ensuring that a process is The Board ensures compliance to annual and 

established for corporate reporting quarterly corporate reporting requirements.
on annual and quarterly basis
or more regularly as relevant to
the Company.
Fulfilling such other Board functions The Board makes every endeavour to ensure 
as relevant to the Organisation. a balanced and objective assessment of the
Company’s position, performance and prospects.
Members from professional accounting bodies
are on the Board ensuring financial and economic
acumen, knowledge and other Board members from
the professional marketing bodies ensure stimulation
of marketing knowledge of the Board members.
Compliance A.1.3 The Board collectively, and Directors As mentioned above, there is a significant emphasis 
with laws individually, must act in accordance across the Organisation to ensure compliance with
and seeking with the laws of the country and applicable laws and regulations.
independent there should be a procedure agreed
The Board members are permitted to obtain
professional by the Board of Directors to obtain
independent professional advice from a third party
advices independent professional advice
including the Company’s External Auditors and
where necessary, at the Company’s
other professional consultants whenever deemed
expense.
necessary at the expense of the Company.
Independent professional advice were obtained
during the year 2018/19 as below:
During the year under review, Board has
obtained independent advice from KPMG on the
implementation of SLFRS 9 and SLFRS 15.
Company A.1.4 All Directors should have access The Company Secretary ensures that all Board 
Secretary to the advice and service of the Terms of Reference are followed and applicable
Company’s Secretary, who is rules and regulations are adhered to. The Company
responsible to the Board in ensuring, Secretary advices the Board and ensures that the
that the Board procedures are Company complies with its Articles of Association,
followed and that the applicable Companies Act and such regulatory publication,
rules and regulations are complied Board procedures and other applicable rules
with. Any question of the removal of and regulations are followed. All Directors have
the Company Secretary should be a access to the Company Secretary. The Secretary
matter for the Board as a whole. possesses the required qualifications as set out in
the Companies Act.
The Company should obtain Insurance cover has been obtained. 

appropriate insurance cover as
recommended by the Nomination
Committee for the Board, Directors
and Key Management Personnel.
110 5 13 25 35
Governance Code
Principle Reference
Independent A.1.5 All Directors should bring The Chairman conducts Board meetings in a manner 
judgement of independent judgement to which ensures that there is effective participation
Directors bear on issues of strategy, from all Directors, their individual contribution and
performance, resource allocation, concerns are objectively assessed prior to making
risk management, compliance and key decisions and that the balance of power is
standards of business conduct. maintained.
In advance of every Board meeting, each Director
receives a comprehensive set of Board papers
and any additional information requested by the
Directors. It is the Group CEO’s duty to ensure that
all members are properly briefed.
None of the Independent Directors have held
executive responsibilities in the Company, and
have submitted a declaration confirming their
independence in accordance with Section 7 of the
CSE Listing Rules on Corporate Governance as at
31st March 2019.
Dedication A.1.6 Every Director should dedicate The Board met on four occasions during the year. 
of adequate adequate time and effort to
The Board is satisfied that the Chairman and the
time and matters of the Board and the
Non-Executive Directors committed sufficient time
effort by the Company, to ensure that the
during 2018/19 to fulfil their duties.
Directors duties and responsibilities owned
to the Company are satisfactorily
discharged.
A.1.7 One-third of Directors can call for As per Articles of Association, resolutions could be 
a resolution to be presented to the passed with majority voting.
Board where they feel it is in the best
interest to the Company to do so.
Training for A.1.8 Every Director should receive The Directors are given the opportunities to 
new and appropriate training when first familiarise and obtain an in-depth understanding of
existing appointed to the Board of a the Company’s business, its strategies, risks and
Directors company, and subsequently as processes, at their discretion.
necessary. The training curricular
Training is provided to Executive Directors and
should encompass both general
Alternate Directors to equip themselves to discharge
aspects of directorship and matters
their responsibilities effectively. This includes
specific to the particular industry/
training provided by principles, external and in-
company concerned. A Director must
house training. Training and development needs are
recognise that there is a need for
reviewed on a regular basis.
continuous training and expansion
of the knowledge and skill required Directors are briefed on changes in laws and
to effectively perform his duties as a regulations, tax laws and accounting standards from
Director. The Board should regularly time to time either during the Board meetings or at
review and agree on the training and specially convened sessions.
development needs of the Directors.
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REPORTS INFORMATION
A.2 Chairman and Group Chief Executive Officer (Group CEO)

Main Principle
Governance Code
Principle Reference
Separation of A.2.1 The positions of Chairman Although Chairman acts as Executive Chairman, the 
the roles of and Group CEO are separated Chairman’s and Group CEO’s functions are separated to
Chairman and to ensure a balance of ensure a balance of power of authority and this dual panel
Group CEO power and authority and to structure has been continued throughout the year 2018/19.
prevent any one individual
The Chairman of the Board of Directors functions in an
from possessing unfettered
executive capacity. The Group Chief Executive Officer
decision-making authority.
functions as an Ex-Officio Director of the Board and is the
apex executive in charge of the day-to-day management of
operations and business of the Company, while providing
the link between the, Board of the Parent Company and
Divisional Heads (Key Management).
A.3 Chairman’s Role

Main Principle
The Chairman’s role in preserving good corporate governance is crucial. As the person responsible for running the Board, the Chairman should
preserve order and facilitate the effective discharge of Board functions.
Governance Code
Principle Reference
Role of A.3.1 The Chairman should conduct

Chairman Board proceedings in a proper
manner and ensure, inter alia ,
that –
zz The agenda for Board zz Agenda for Board meetings is developed in consultation 
meetings is developed with the Group CEO, Directors, CFO and the Company
in consultation with the Secretary.
CEO, Directors and the
Company Secretary
taking into consideration
matters relating to strategy,
performance, resource
allocation, risk management
and compliance.
zz Sufficiently detailed zz Required information are provided to Directors in a 
information of matters timely manner.
included in the agenda
should be provided to
Directors in a timely manner.
zz All Directors are made zz All Directors are aware of their duties and responsibilities 
aware of their duties and and Chairman and Group CEO provide a comprehensive
responsibilities and the overview of the Company and its operations once a new
Board and Committee Director is appointed to the Board.
structures through which it
will operate in discharging its
responsibilities.
112 5 13 25 35
Governance Code
Principle Reference
zz The effective participation zz The Chairman is responsible for leading the Board 
of both Executive and and for its effectiveness. In practice, this means taking
Non-Executive Directors is responsibility for the Board’s composition, ensuring
secured. that the Board focuses on its key tasks and supports
the Group CEO in managing the day-to-day running of
the Company. The Chairman is also the ultimate point
of contact for shareholders, particularly on corporate
governance issues.
zz All Directors are encouraged zz The Chairman satisfies himself that the information 
to make an effective available to the Board is sufficient to make an informed
contribution, within their assessment of the Company’s affairs as well as to
respective capabilities, for discharge their duties to all stakeholders.
the benefit of the Company.
zz All Directors are encouraged zz Necessary information and presentations are done if 
to seek information necessary to the agenda items. All Directors are free to
considered necessary to communicate with Divisional Heads and Head of Risk
discuss matters on the Management to call additional information necessary.
agenda of meetings and to
request inclusion of matters
of corporate concern on the
agenda.
zz A balance of power between zz The Chairman conducts Board meetings in a manner 
Executive and Non-Executive which ensures that there is effective participation from all
Directors is maintained. Directors, their individual contribution and concerns are
objectively assessed prior to making key decisions and
that the balance of power is maintained.
zz The views of Directors on zz Chairman ensures that regular meetings are conducted at 
issues under consideration least once a quarter and the minutes of the meetings are
are ascertained; and accurately recorded.
zz The Board is in complete zz Chairman approves the agenda prepared by the
control of the Company’s Company Secretary.
affairs and alert to
its obligations to all
shareholders and other
stakeholders.
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REPORTS INFORMATION
A.4 Financial Acumen

Main Principle
The Board should ensure the availability within it of those with sufficient financial acumen and knowledge to offer guidance on
matters of finance.
Governance Code
Principle Reference
Financial A.4.1 Availability of sufficient financial The Board includes a member who is a Fellow Member 
acumen and acumen and knowledge. of the Association of Certified Chartered Accountants,
knowledge UK, a member who is a Fellow Member of The Institute
of Chartered Accountants of Sri Lanka and a member
of the Institute of Certified Management Accountants of
Australia, a member who is an Associate Member of The
Institute of Chartered Accountants of Sri Lanka (ACA) and
Fellow Member of the Chartered Institute of Management
Accountants, UK, (FCMA). Other members of the Board
have the ability to offer guidance on matters of finance to
the Board.
The profiles of the Board of Directors are provided in this
Annual Report from pages 18 to 21.
A.5 Board Balance

Main Principle
It is preferable for the Board to have a balance of Executive and Non-Executive Directors such that no individual or small group
of individuals can dominate the Board’s decision-taking.
Governance Code
Principle Reference
Presence of A.5.1 The Board should include Non- Eight out of ten Directors on the Board are Non-Executive 
strong team of Executive Directors of sufficient Directors which is well above the minimum prescribed by
Non-Executive calibre and number for their the Code. This ensures views of Non-Executive Directors
Directors views to carry significant weight carry a significant weight in the decisions made by
in the Board’s decisions. the Board.
The Board should include
at least three Non-Executive
Directors or such number
of Non-Executive Directors
equivalent to one-third of total
number of Directors, whichever
is higher. In the event, the
Chairman and CEO is the
same person, Non-Executive
Directors should comprise a
majority of the Board.
114 5 13 25 35
Governance Code
Principle Reference
Independent A.5.2 Where the constitution of the Board Five out of eight Non-Executive Directors 
Non-Executive of Directors includes only three on the Board are independent based on the
Directors Non-Executive Directors, all three criteria set by this Code and the Listing Rules
Non-Executive Directors should be of the Colombo Stock Exchange. However, the
“independent”. In all other instances Board has determined Mr. M.H. Jamaldeen
three or two-third of Non-Executive as an independent Non-Executive Director
Directors appointed to the Board of notwithstanding that he is a Director of Hayleys
Directors whichever is higher should PLC, the Parent Company as the objectivity of his
be “independent”. role is not compromised by being on both Boards.
The Names of the Independent Non-Executive
Directors are disclosed in Code A.5.5 and on the
back page of the Annual Report.
Independence A.5.3 For a Director to be deemed The Company maintains the “Interest Register” 
of Non- “independent” such Director should required by the Companies Act No. 07 of 2007,
Executive be independent of management which also shows details of Director Interest in
Directors and free of any business or other Contracts/Company or Group.
relationship that could materially
A disclosure on related party transactions is
interfere with or could reasonably be
available on pages 267 to 269.
perceived to materially interfere with
the exercise of their unfettered and
independent judgement.
Annual A.5.4 Each Non-Executive Director Every Non-Executive Independent Director of the 
Declaration should submit a signed and dated Company has made written submissions as to
declaration annually of his/her their independence against the specified criteria
independence or non-independence set out by the Company, which is in line with the
against the specified criteria set out requirements of Schedule K of this Code.
in the Specimen in Schedule K.
Determination of A.5.5 The Board should make a The Board has determined the independence of 
Independence determination annually as to the Directors based on the declarations submitted
of Director independence or non-independence by the Non-Executive Directors, as to their
of each Non-Executive Director independence, as a fair representation and will
based on such a declaration continue to evaluate their independence on this
made of decided criteria and other basis annually. No circumstances have arisen
information available to the Board, for the determination of independence by the
and should set out in the Annual Board, beyond the criteria set out in the Code.
Report the names of Directors Independent Non-Executive Directors are:
determined to be “independent”.
The Board should specify the Mr. D. Sooriyaarachchi

criteria not met and the basis for its Mr. M.H. Jamaldeen*
determination in the Annual Report,
Mr. D.H. Fernando
if it determines that a Director
is independent notwithstanding Mr. D.K. de S.Wijeyeratne
the existence of relationships or Ms. O. Gunewardene
circumstances which indicate
*The Board has determined Mr. M.H. Jamaldeen
the contrary.
as an Independent Non-Executive Director
notwithstanding that he is a Director of Hayleys
PLC, the Parent Company as the objectivity of his
role is not compromised by being on both Boards.
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REPORTS INFORMATION
Governance Code
Principle Reference
Appointment A.5.6 If an Alternate Director is Independent Non-Executive Director has appointed 

of Alternate appointed by a Non-Executive an Executive Director within the Singer Group as
Director Director such Alternate Director his Alternate Director. However any decision by the
should not be an executive of the Alternate Director is arrived at in consultation with
Company. If an Alternate Director his appointor and hence there is no compromise
is appointed by an Independent of the independence of his appointor during Board
Director, the person who is proceedings.
appointed also should meet the
Alternative Directors to the Non-Executive Directors are
criteria of Independence and the
executives of the Company. However, Board balance is
provision on minimum number of
not affected since the Board complies with Code A.5.2
independent Directors also should
be satisfied.
Requirement A.5.7 In the event the Chairman and Not applicable since Group CEO is the apex Executive 
to appoint CEO is the same person, or the in charge of the day-to-day management of operations
“Senior Non- Chairman is not an Independent and business of the Company.
Executive Director or the Chairman is
Director” immediately preceding CEO,
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.
Confidential A.5.8 The Senior Independent Director Not Applicable. 

discussion should make himself available for
with Senior confidential discussions with other
Independent Directors who may have concerns
Director which they believe have not been
properly considered by the Board
as a whole and which pertain
to significant issues that are
detrimental to the Company.
Chairman’s A.5.9 The Chairman should hold Chairman meets with Non-Executive Directors without 
meetings with meetings with the Non-Executive the presence of Executive Directors, whenever
Non-Executive Directors only, without the necessary.
Directors Executive Directors being present,
as necessary and at least once
each year.
Recording of A.5.10 Where Directors have concerns Concerns raised by the Directors during the period, 
concerns in about the matters of the Company if any, are recorded in the minutes of Board meetings
Board Minutes which cannot be unanimously with adequate details by the Company Secretary.
resolved, they should ensure their
concerns are recorded in the
Board minutes.
116 5 13 25 35
A.6 Supply of Information

Main Principle
The Board should be provided with timely information in a form and of a quality appropriate to enable it to discharge its duties.
Corporate SEC and Requirement of the Code Compliant with the Code Compliance
Governance CA Sri Lanka
Principle Code Reference
Management A.6.1 Management has an obligation to provide the The Company ensures that the Directors 
obligation Board with appropriate and timely information, receive adequate information in a timely
to provide but information volunteered by management manner. On urgent matters, every effort
appropriate may not be enough in all circumstances and is made to provide the information, as
and timely Directors should make further inquiries where early as possible.
information to necessary. The Chairman should ensure
The Board receives a standard set of
the Board all Directors are properly briefed on issues
documents, which are timely, accurate,
arising at Board meetings.
relevant and comprehensive. These papers
include a detailed analysis of financial and
non-financial information. The Board may call
for additional information or clarify issues with
any member of the Executive Committee.
If necessary, all Directors are adequately
briefed by the Group CEO on matters
arising at Board meetings. The Secretary
and the Compliance Officer ensure that
Board papers are circulated in advance
prior to Board meeting.
If necessary, members of the Executive
Committee, External Auditors and Outside
Consultancies makes presentations on
issues of importance.
The Chairman ensures that all Directors
are briefed adequately on issues arising at
Board meetings.
Adequate The minutes, agenda and papers required for The minutes, agenda and papers 
time for a Board meeting should ordinarily be provided required for Board meeting are provided
effective to Directors at least seven (7) days before in advance to facilitate its effective
conduct the meeting, and the minutes of the meeting conduct.
of Board should ordinarily be provided to Directors at
meetings least two weeks after the meeting date.
A.7 Appointments to the Board

Main Principle
There should be a formal and transparent procedure for the appointment of new Directors to the Board.
Governance Code
Principle Reference
Nomination A.7.1 A Nomination Committee should be established The Committee consists of one 
Committee to make recommendations to the Board on all Independent Non-Executive Director,
new Board appointments. Terms of Reference one Non-Executive Director, Chairman
for Nomination Committees are set out in who is also an Executive Director and
Schedule A. The Chairman and members of the Group CEO.
Nomination Committee should be identified in
Please refer page 151 for new
the Annual Report.
appointments in year 2018/19.
161 271 117
REPORTS INFORMATION
Governance Code
Principle Reference
A separate section of the Annual Report Details of work of the Nomination 

should describe the work of the Nomination Committee are given in page 151.
Committee including the process it has used
in relation to Board appointments.
Assessment A.7.2 The Nomination Committee should annually Board as a whole annually assessed 
of Board assess Board-composition to ascertain the composition of the Board to ensure
composition by whether the combined knowledge and that the combined knowledge and
the Nomination experience of the Board matches the experience of the Board matches the
Committee strategic demands facing the Company. The strategic demand facing the Company.
findings of such assessment should be taken The findings of such assessments are
into account when new Board appointments taken into account when new Board
are considered and when incumbent appointments are considered.
Directors come up for re-election.
Disclose of A.7.3 Upon the appointment of a new Director to All new appointments are communicated 
required details the Board, the Company should forthwith to the shareholders via the Colombo
of new Directors disclose to shareholders: Stock Exchange.
to shareholders
zz a brief résumé of the Director; The details of the current Board of
zz the nature of his expertise in relevant Directors and new appointments are
functional areas; provided on pages 18 to 21 in this
Annual Report.
zz the names of companies in which
the Director holds directorships or
memberships in Board committees; and
zz whether such a Director can be considered
“independent”.
A.8 Re-election
Main Principle
All Directors should be required to submit themselves for re-election at regular intervals and at least once in every three years.
Governance Code
Principle Reference
Re-election of A.8.1 Non-Executive Directors should be In terms of the Articles of Association, one- 
Non-Executive appointed for specified terms subject to third of the Directors, except for Chairman,
Directors, re-election and to the provisions in the Managing Director/CEO, retire by rotation
Chairman and Companies Act relating to the removal of and may offer themselves for re-election at
CEO a Director, and their reappointment should the AGM. By virtue of being the Chairman,
not be automatic. Managing Director/CEO are not required
to make themselves available for re-
election as per the Articles of Association.
The Company’s Articles of Association
provides that any Director appointed by the
Board during the period to hold office until
the next Annual General Meeting and seek
reappointment by the shareholders at the
said AGM.
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Governance Code
Principle Reference
A.8.2 All Directors including the Chairman of Based on the article and the current 
the Board, should be subject to election composition of the Board, a Director has
by shareholders at the first opportunity to come forward for re-election, every
after their appointment, and to re-election three years.
thereafter at intervals of no more than three
A résumé of the Directors coming up
years. The names of Directors submitted
for re-election at the AGM, 2018/19 is
for election or re-election should be
available on pages 18 to 21.
accompanied by a résumé minimally as set
out in paragraph A.7.3 above, to enable The Chairman and Chief Executive Officer
shareholders to make an informed decision do not retire by rotation.
on their election.
Resignation A.8.3 In the event of a resignation of a Director Written communications are provided to 
prior to completion of his appointed term, the Board by Directors who resign prior to
the Director should provide a written completion of his appointed term.
communication to the Board of his reasons
for resignation.
A.9 Appraisal of Board Performance

Main Principle
Boards should periodically appraise their own performance in order to ensure that Board responsibilities are satisfactorily discharged.
Governance Code
Principle Reference
Annual A.9.1 The Board should have in place a formal The performance of the Board and the 
performance and rigorous process for annually reviewing Subcommittee is reviewed and evaluated
evaluation of the the performance of the Board and its by the Board and Chairman based on a
Board and its committees and should address any self-appraisal basis.
Committee matters that may arise from such review, in
the discharge of its key responsibilities as
set out in A.1.2.
A.9.2 The Board should also undertake an annual Not Complied. 
self-evaluation of its own performance and
that of its committees.
The evaluation should be carried out by
each Director individually. The collective
outcome should be compiled and made
available to Nomination Committee,
which should make recommendations
to the Board on initiatives and actions
required to improve the balance of skills,
experience, independence, industry and
company knowledge, training of Directors,
governance processes, strategy review and
other factors relevant to its effectiveness.
A.9.3 The Board should have a process to Not Complied. 
review the participation, contribution and
engagement of each Director at the time of
re-election
A.9.4 The Board should state how such Not Complied. 
performance evaluations have been
conducted, in the Annual Report.
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A.10 Disclosure of Information in Respect of Directors

Main Principle
Shareholders should be kept advised of relevant details in respect of Directors.
Governance Code
Principle Reference
Details in A.10.1 The Annual Report of the Company should set

respect of out the following information in relation to each
Directors Director:
i. Name, qualifications and brief profile; Available on pages 18 to 21 of Board of 

Directors.
ii. The nature of his/her expertise in relevant Available on pages 18 to 21 of Board of 

functional areas; Directors.
iii. Immediate family and/or material business Not Applicable. 

relationships with other Directors of the
Company;
iv. Whether Executive, Non-Executive and/or Available on pages 18 to 21 of Board of 

Independent Director Directors.
v. Names of listed companies in Sri Lanka in Available on pages 18 to 21 of Board of 

which the Director concerned serves as a Directors.
Director;
vi. Names of other companies in which the Director Available on pages 18 to 21 of Board of 
concerned serves as a Director, provided that Directors.
where he/she holds directorships in companies
within a Group of which the Company is a
part, their names need not be disclosed; it
is sufficient to state that he/she holds other
directorships in such companies;
vii. N umber/percentage of Board meetings of the Available on page 147. 

Company attended during the year;
viii. The total number of Board seats held by Not disclosed in the Annual report. 
each Director indicating listed and unlisted But can be obtained from Company
companies and whether in an executive or non- Secretary.
executive capacity;
ix. Committees in which the Director serves as Available on pages 164 and 165. 
Chairman or a member;
x. Number/percentage of Committee meetings Available on page 146. 

attended during the year.
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A.11 Appraisal of Group Chief Executive Officer

Main Principle
The Board should be required, at least annually, to assess the performance of the Group CEO.
Governance Code
Principle Reference
Setting annual A.11.1 At the commencement of every fiscal year, The Annual Business Plan is prepared setting 
targets and the the Board in consultation with the CEO, up short-term, medium-term and long-
appraisal of should set, in line with the short, medium term financial and non-financial goals. The
performance and long-term objectives of the Company, Annual Business Plan is initially approved by
of the CEO reasonable financial and non-financial the Board.
targets that should be met by the Group
CEO during the year.
A.11.2 The performance of the Group CEO should Assessment of performance of the Group 
be evaluated by the Board at the end CEO is carried out by the Board at the end
of each fiscal year to ascertain whether of each year to ensure that pre-agreed
the targets set by the Board have been targets have been achieved or if not whether
achieved and if not, whether the failure to there are acceptable reasons for not
meet such targets was reasonable in the achieving them.
circumstances.
B. Directors’ Remuneration
B.1 Remuneration Procedure
Main Principle
Companies should establish a formal and transparent procedure for developing policy on executive remuneration and for fixing
the remuneration packages of individual Directors. No Director should be involved in deciding his/her own remuneration.
Governance Code
Principle Reference
Establishment B.1.1 To avoid potential conflicts of interest, The scope of the Committee is to consider 
of the the Board of Directors should set up and recommend to the Board remuneration
Remuneration a Remuneration Committee to make and perquisites of Independent Directors,
Committee recommendations to the Board, within Executive Directors of the Board of the
agreed terms of reference, on the Company including Key Managers and
Company’s framework of remunerating approve recommendations made by the
Executive Directors. (These also include Group Chief Executive Officer and the
Post-Employment Benefits as well as Parent Company.
Terminal Benefits.) Terms of Reference for
Remuneration and perquisites of Group
Remuneration Committees are set out in
CEO is considered and recommended
Schedule C.
by the Parent Company – Hayleys PLC
Remuneration Committee.
Composition B.1.2 Remuneration Committees should consist The Committee consists of three Independent 
of the exclusively of Non-Executive Directors Non-Executive Directors. The Committee is
Remuneration with a minimum of three Non-Executive chaired by an Independent Non-Executive
Committee Directors of whom the majority should be Director. Finance Director serves as the
Independent. The Chairman should be an Secretary to the Committee. Chairman to
independent Non-Executive Director and the Company participates as an observer to
should be appointed by the Board. the Committee. Group CEO and the Finance
Director assist the Committee by providing
the relevant information and participating in its
analysis and deliberations.
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REPORTS INFORMATION
Governance Code
Principle Reference
Chairman B.1.3 The Chairman and members of the Please refer page 150 of the Remuneration 
and Members Remuneration Committee should be listed Committee Report for details of the Chairman
of the in the Annual Report each year. and members of the Board Remuneration
Committee
Determination B.1.4 The Board as a whole, or where After consideration of the recommendation 
of required by the Articles of Association made by the Group Chief Executive Officer
remuneration the shareholders, should determine the and the Parent Company., the Committee
of Non- remuneration of Non-Executive Directors, as a whole decides the remuneration of the
Executive including members of the Remuneration Non-Executive Directors. The Non-Executive
Directors Committee, within the limits set in the Directors receive a fee for being a Director of
Articles of Association. Where permitted the Board and separate fee for either chairing
by the Articles, the Board may delegate or being a member of a Board Subcommittee.
this responsibility to a subcommittee of the They do not receive any performance/
Board, which might include the CEO. incentive payments.
Consultation of B.1.5 The Remuneration Committee should The Committee has the authority to 
the Chairman consult the Chairman and/or CEO about its seek internal and external independent
and access to proposals relating to the remuneration of professional advice on matters falling within
professional other Executive Directors and have access its purview, at the Company’s expense. Views
advice to professional advice from within and of the Chairman and Group CEO are obtained
outside the Company, in discharging their as they too assist and participate in its
responsibilities. analysis and deliberations to the said Board
Subcommittee.
B.2 Level and Make – Up of Remuneration

Main Principle
Levels of remuneration of both Executive and Non-Executive Directors should be sufficient to attract and retain the Directors
needed to run the Company successfully. A proportion of Executive Directors’ remuneration should be structured to link rewards
to corporate and individual performance.
Governance Code
Principle Reference
Executive B.2.1 The Remuneration Committee should provide the The Board Remuneration Committee 
Directors’ packages needed to attract, retain and motivate and also the Board ensure that
remuneration Executive Directors of the quality required but Executive Directors – (Alternate
package should avoid paying more than is necessary for Directors to the Non-Executive
this purpose. Directors) who are on the Board and
Key Management are provided with an
attractive remuneration package.
Remuneration package of the Group
CEO is considered at Parent Company
B.2.2 Executive Directors’ remuneration should be Executive Directors’ and Key 

designed to promote the long-term success of Management’s remuneration is
the Company. designed to promote the long-term
success of the Company/Group.
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Comparison of B.2.3 The Remuneration Committee should judge A primary objective of compensation 
remuneration where to position levels of remuneration of packages is to attract and retain a
with other the Company, relative to other companies. It highly qualified and experienced
companies/ should be aware what comparable companies workforce and reward performances.
Other are paying and should take account of relative These compensation packages
companies in performance, but should use such comparisons should provide compensation
the Group with caution, mindful of the risk that they can appropriate for each business within
result in an increase of remuneration levels with the Group and commensurate with
no corresponding improvement in performance. each employee’s level of experience
and contribution, bearing in mind the
business performance and long-term
shareholder returns.
B.2.4 The Remuneration Committee should be Remuneration and annual salary 

sensitive to remuneration and employment increases are decided considering
conditions elsewhere in the Company or Group industry practices, performance of the
of which it is a part, especially when determining Company/Group, each employee’s
annual salary increases. level of experience and contribution
bearing in mind the business
performance and the long-term
shareholder returns.
Performance- B.2.5 The performance-related elements of Objectives for Group CEO, Executive 
based remuneration of Executive Directors should be Directors and Key Management
remuneration designed and tailored to align their interests with are set at the beginning of the year
of Executive those of the Company and main stakeholders and the remuneration including the
Directors and to give these Directors appropriate performance bonus is decided based
incentives to perform at the highest levels. upon the degree of achievement of
The performance-related elements should be such pre-set targets subject to the
transparent, stretching and rigorously applied. remuneration policy.
Executive B.2.6 Executive share options should not be offered Presently the Company does not have 
share options at a discount (i.e., less than market price an Executive Share Option Scheme.
prevailing at the time the exercise price is
determined), save as permitted by the Listing
Rules of the Colombo Stock Exchange. Shares
granted under share options schemes should
not be exercisable in less than three years and
the Remuneration Committee should consider
requiring Directors to hold a minimum number
of shares and to hold shares for a further period
after vesting or exercise.
Designing the B.2.7 In designing schemes of performance-related Please refer Remuneration Committee 
remuneration remuneration, Remuneration Committees should Report on page 150.
of Executive follow the provisions set out in Schedule E. The
Directors schemes should include provisions that would
enable the Company to recover sums paid or
withhold a portion of such performance-related
remuneration and specify the circumstances in
which a company may not be entitled to do so.
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REPORTS INFORMATION
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Principle Reference
Early B.2.8 Remuneration Committee should consider Not applicable to the Board except 
termination what compensation commitments (including for Group CEO and other Executive
of Executive pension contributions) their Directors’ contracts Directors (Alternate Directors to the
Directors of service, if any, entail in the event of early Non-Executive Directors) who are
termination. Remuneration Committee should in employees of the Company, and their
particular, consider the advantages of providing terms of employment are governed by
explicitly for such compensation commitments the contract of service/employment.
to apply other than in the case of removal for
misconduct, in initial contracts.
B.2.9 Where the initial contract does not explicitly Not applicable. 
provide for compensation commitments,
Remuneration Committees should, within
legal constraints, tailor their approach in early
termination cases to the relevant circumstances.
The broad aim should be, to avoid rewarding
poor performance while dealing fairly with cases
where departure is not due to poor performance.
Level of B.2.10 Levels of remuneration for Non-Executive Non-Executive Directors of the 

remuneration Directors should reflect the time commitment Company are paid nominal fees
of Non- and responsibilities of their role, taking into commensurate with their time and
Executive consideration market practices. Remuneration role in the Company and taking into
Directors for Non-Executive Directors should not normally consideration market practices.
include share options. If exceptionally options are
Non-Executive Directors are not
granted, shareholder approval should be sought
included in share options as there is no
in advance and any shares acquired by exercise
scheme in existence.
of the options should be held until at least one
year after the Non-Executive Director leaves the
Board. Holding share options could be relevant
to the determination of a Non-Executive Director’s
independence. (as set out in provision A.5.5).
B.3 Disclosure of Remuneration

Main Principle
The Company’s Annual Report should contain a Statement of Remuneration Policy and details of remuneration of the
Board as a whole.
Governance Code
Principle Reference
Disclosure of B.3.1 The Annual Report should set out the names of Please refer Remuneration Committee 
Remuneration Directors (or persons in the Parent Company’s Report on page 150 for disclosure on
Committee in the case of a Group Company) the names of Remuneration Committee
comprising the Remuneration Committee, contain members and Remuneration Policy of
a statement of remuneration policy and set out the Company.
the aggregate remuneration paid to Executive
Please refer Note 8 to the Financial
and Non-Executive Directors.
Statements on page 214 for aggregate
remuneration paid to Executive and
Non-Executive Directors.
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C. Relations with Shareholders

C.1 Constructive use of Annual General Meeting (AGM) and Conduct of General Meetings
Main Principle
Boards should use the AGM to communicate with shareholders and should encourage their participation.
Governance Code
Principle Reference
Adequate C.1.1 Companies should arrange for the Notice of AGM and related A copy of the Annual 
Notice of the papers to be sent to shareholders at least as determined by Report including
AGM statute, before the meeting. Financial Statements,
Notice of Meeting and
the Form of the Proxy
are sent to shareholders
15 working days prior
to the date of the AGM,
as requested by statute,
in order to provide the
opportunity to all the
shareholders to attend
the AGM.
Separate C.1.2 Companies should propose a separate resolution at the AGM Company proposes 
resolution for on each substantially separate issue and should in particular a separate resolution
all separate propose a resolution at the AGM relating to the adoption of the at the AGM on each
issues at the report and accounts. For each resolution, proxy appointment substantially separate
AGM forms should provide shareholders with the option to direct their issue.
proxy to vote either for or against the resolution or to withhold
Further, adoption of
their vote. The Proxy Form and any announcements of the
the Annual Report of
results of a vote should make it clear that a “vote withheld” is
the Board of Directors
not a vote in law and will not be counted in the calculation of
on the affairs of the
the proportion of the votes for and against the resolution.
Company and Audited
Financial Statements
together with the Report
of the Auditors thereon
are considered as a
separate resolution.
C.1.3 The Company should ensure that all valid proxy appointments The Company ensures 
received for General Meetings are properly recorded and that all valid proxy
counted. For each resolution where a vote has been taken on a appointments received
show of hands, the Company should ensure that the following for General Meetings
information is given at the Meeting and made available as soon are properly recorded
as reasonably practicable on a website which is maintained by and counted.
or on behalf of the Company:
zz The number of shares in respect of which proxy
appointments have been validly made;
zz The number of votes for the resolution;
zz The number of votes against the resolution; and
zz The number of shares in respect of which the vote was
directed to be withheld;
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REPORTS INFORMATION
Governance Code
Principle Reference
zz When, in the opinion of the Board a significant proportion

of votes have been cast against a resolution at any General
Meeting, the Board should take steps to understand the
reasons behind the vote results and determine if any actions
are required.
Availability C.1.4 The Chairman of the Board should arrange for the Chairmen The Chairman of the 
of all of the Audit, Remuneration, Nomination and Related Parties Company ensures that
Subcommittee Transactions Review Committees and the Senior Independent Chairmen of all Board
Chairmen Director where such appointment has been made, to be Subcommittees namely,
available to answer questions at the AGM if so requested by the Audit, Remuneration,
Chairman. Nomination and Related
Party Transactions
Review Committees are
present at the AGM to
answer the questions
under their purview.
Procedures of C.1.5 Companies should circulate with every Notice of General A summary of the 
Voting at AGM Meeting, a summary of the procedures governing voting at procedures governing
General Meetings. voting at General
Meeting is circulated
to shareholders
with every Notice of
General Meeting.
C.2 Communication with Shareholders

Main Principle
The Board should implement effective communication with shareholders.
Governance Code
Principle Reference
Channel to reach C.2.1 There should be a The primary modes of communication between Company 
all shareholders channel to reach all and the shareholders are the CSE announcements.
of the Company shareholders of the Interim Financial Statements, Shareholders Circulars/
Company in order to Notices , Annual Report and AGM. Information is provided
disseminate timely to the shareholders prior to the AGM to give them an
information. opportunity to exercise the prerogative to raise any issues
relating to the business of Company, either verbally or in
writing prior to the AGM.
The Company used the following channels to disseminate
timely information;
zz Shareholders meetings
zz Financial and other notices as and when required through
the Colombo Stock Exchange
zz Corporate website
zz Press notices.
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Policy and C.2.2 The Company should The Company will focus on open communication and fair 
methodology for disclose the policy disclosure, with emphasis on the integrity, timeliness and
communication and methodology for relevance of the information provided. The Company will
with shareholders communication with ensure information is communicated accurately and in such a
shareholders. way as to avoid the creation or continuation of a false market.
Implementation C.2.3 The Company should Printed copies of Annual Report are provided to all 
of the Policy and disclose how they shareholders without charge.
methodology for implement the above
All other announcements are posted on the CSE website.
communication policy and methodology.
with shareholders
Contact C.2.4 The Company should Details of Company Secretary are disclosed in Corporate 
person for the disclose the contact Information Section. Shareholders may, at any time, direct
communication person for such questions, request for publicly available information
communication. and provide comments and suggestions to Directors or
Management of the Company. In addition, Head of Investor
Relations is assigned to handle communications related to
investor relations. Such questions, requests and comments
should be addressed to the Company Secretary and in the
absence of him the Group Chief Executive Officer.
Process to make C.2.5 The Company should The Company Secretary shall maintain a record of all 
Directors aware have a process to make correspondence received and will deliver as soon as
of major issues all Directors aware practicable such correspondence to the Board or individual
and concerns of of major issues and Director/s as applicable. The Board or individual Director/s,
shareholders concerns of shareholders as applicable, will generate an appropriate response to
and this process should all validly received shareholder correspondence and will
be disclosed by the direct the Company Secretary to send the response to the
Company. particular shareholder.
C.2.6 The Company should Company Secretary or head of Investor Relations can be 
decide the person to contacted in relation to shareholders’ matters.
contact in relation to
shareholders’ matters.
C.2.7 The process for Company Secretary is assigned to respond to shareholders 

responding to by the Board and update the Board on such matters.
shareholders matters
should be formulated by
the Board and disclosed.
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REPORTS INFORMATION
C.3 Major Transactions

Main Principle
Further to compliance with the requirements under the Companies Act, Directors should disclose to shareholders all proposed
corporate transactions, which if entered into, would materially alter/vary the Company’s net assets base or in the case of a
Company with subsidiaries, the consolidated Group net asset base.
Governance Code
Principle Reference
Disclosure on C.3.1 Prior to a company engaging in or committing to a During the year, there were 
“Major “Major Related Party Transaction”, with a related party, no major transactions as
Transaction” involving the acquisition, sale or disposition of greater defined by Section 185 of the
than one third value of the Company’s assets or that of a Company’s Act No. 07 of 2007
subsidiary which has a material bearing on the Company which materially affect the Net
and for consolidated net assets of the Company, or a Assets Base of the Company or
transaction which has or is likely to have the effect of Consolidated Group Net Asset
the Company acquiring obligations and liabilities, of Base.
greater than one third of the value of the Company’s
assets, the Directors should disclose to shareholders Transactions which materially
the purpose and all material facts of such transaction affect the net assets base of the
and obtain shareholders’ approval by ordinary resolution Company will be disclosed in
at an EGM. It also applies to transactions or series of the Quarterly/Annual Financial
related transactions which have the purpose or effect of Statements, if any.
substantially altering nature of the business carried on by
the Company.
C.3.2 Public listed companies should in addition comply with Not applicable since no such 
the disclosure requirements and shareholder approval transactions were carried out
by special resolution as required by the Rules and during the period.
Regulations of the Securities and Exchange Commission
and by the Colombo Stock Exchange.
D. Accountability and Audit

D.1 Financial Reporting
Main Principle
The Board should present a balanced and understandable assessment of the Company’s financial position, performance and
prospects.
Governance Code
Principle Reference
Board’s D.1.1 The Board should present an annual An annual report is presented including Financial 
responsibility report including Financial Statements Statements that is true and fair, balanced and
for Statutory that is true and fair, balanced and understandable and prepared in accordance with
and understandable and prepared in the relevant laws and regulations.
Regulatory accordance with the relevant laws
Reporting and regulations and any deviation
being clearly explained.
D.1.2 The Board’s responsibility to present The Board is well aware of its responsibility to 
a balanced and understandable present regulatory and statutory reporting in a
assessment extends to interim and balanced and understandable manner and a
other price-sensitive public reports statement to this effect is given in the Statement of
and reports to regulators, as well Directors’ Responsibility on page 170 confirming this
as to information required to be position.
presented by statutory requirements.
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The Company had strictly complied with the

requirements of the Companies Act No. 07 of 2007
in the preparation of Quarterly and Annual Financial
Statements which are prepared and presented in
conformity with Sri Lanka Accounting Standards.
Further, Company has complied with the reporting
requirements prescribed by the regulatory authority
such as the Colombo Stock Exchange.
In case of Subsidiary Company – Singer 

Finance (Lanka) PLC has also complied with the
requirements of the Finance Companies Act No.
78 of 1988 and amendments thereto and reporting
requirements prescribed by the regulatory authorities
such as the Central Bank of Sri Lanka and the
Colombo Stock Exchange. Given below is a table
containing the dates on which the Annual and Interim
Financial Statements were uploaded to the CSE
website/dispatched to the shareholders in the year
under review:
Report Date of Dispatch or Status

Upload
Annual Report for the 4th June 2018 Compliant

15 months ended
31st March 2018
1st Quarter 2018 8th August 2018 Compliant
2nd Quarter 2018 12th November 2018 Compliant
3rd Quarter 2018 8th February 2019 Compliant
4th Quarter 2019 16th May 2019 Compliant
D.1.3 The Board should, before it approves It is assigned to Chief Financial Officer, Head of 
the Company’s Financial Statements Risk Management and compliance officers of the
for a financial period, obtain from respective subsidiary companies.
its Chief Executive Officer and
Chief Financial Officer, Head of Risk Management
Chief Financial Officer a declaration
and compliance officers (financial accountants)
that, in their opinion, the financial
review quarterly and year end Financial Statements
records of the entity have been
before submitting to the Audit Committee and Board
properly maintained and that the
and ensure that, the financial records of the entity
Financial Statements comply with the
have been properly maintained and that the Financial
appropriate accounting standards
Statements comply with the appropriate accounting
and give a true and fair view of the
standards and give a true and fair view.
financial position and performance of
the Company and that the system of
risk management and internal control
was operating effectively.
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Governance Code
Principle Reference
Directors’ D.1.4 The Directors’ Report, which forms part of the Annual The Annual Report of the Board 
Report in Report, should contain declarations by the Directors of Directors on the Affairs of the
the Annual to the effect that: Company given on pages 163 to 169
Report covers all of these sections.
z z the Company has not engaged in any activity
which contravenes laws and regulations; In addition to that Company

has established procedures
z z the Directors have declared all material interests
to ensure compliance with all
in contracts involving the Company and refrained
applicable statutory and regulatory
from voting on matters in which they were
requirements. The Accountants of
materially interested;
respective companies within the
z z the Company has made all endeavours to ensure
Group act as Compliance Officers
the equitable treatment of shareholders; and are responsible for ensuring
z z the Directors have complied with best practices of proper compliance with applicable
corporate governance laws and regulations.

zz Property. plant and equipment is reflected at fair A compliance statement is tabled
value, where it is different from fair value adequate at each Board meeting by the
disclosures are made Compliance Officer.
zz the business is a going concern, with supporting The Company’s compliance with
assumptions or qualifications as necessary; and Section 7.10 of the Colombo Stock
zz they have conducted a review of the internal Exchange Listing Rules on Corporate
controls, covering financial, operational and Governance and details of such
compliance controls and risk management, compliance are discussed on pages
and have obtained reasonable assurance of 144 and 146 of this Report.
their effectiveness and successful adherence
therewith, and, if it is unable to make any of these
declarations, to explain why it is unable to do so.
Statements D.1.5 The Annual Report should contain a statement The “Statement of Directors’ 
of Directors’ setting out the responsibilities of the Board for Responsibility” is given on page 170.
and Auditors’ the preparation and presentation of Financial
The “Independent Auditors’ Report”
Responsibility Statements, together with a statement by the
on pages 171 to 175 states the
for the Auditors about their reporting responsibilities. Further
Auditor’s responsibility.
Financial the Annual Report should contain a report/statement
Statements on internal control. The Statement on Internal Control is
given on page 170 in the Statement
of Director’s Responsibilities.
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Management D.1.6 The Annual Report should contain a “Management Discussion Please refer Chairman’s 
Discussion and Analysis”, discussing, among other issues: Letter on pages 14 and
and Analysis 15, Group Chief Executive
z z business model;
Officer’s Review on pages
z z industry structure and developments; 16 and 17, Review of
z z opportunities and threats;
Operation (Management
Discussion and Analysis)
z z risk management ;
on pages 35 to 99 of this
z z internal control systems and their adequacy; Annual Report.
zz governance; Management Discussion
z z stakeholder relationships;
and Analysis is structured
based on the Integrated
z z social and environmental protection activities carried out by
Reporting Framework in this
the Company; Annual Report.
z z financial performance;
zz investment in physical and intellectual capital;

zz human resource/industrial relations activities carried out by
the company; and
zz prospects for the future.
The Management Discussion and Analysis may be structured

based on the integrated reporting framework issued by
International Integrated Reporting Council and “a preparer’s
guide to integrated Corporate Reporting” issued by CA Sri Lanka.
Summon on D.1.7 In the event the net assets of the Company falling below Likelihood of such 
EGM to notify 50% of the value of the Company’s shareholders’ funds, the occurrence is remote.
serious loss Directors shall forthwith summon an Extraordinary General However, should the
of capital Meeting of the Company to notify shareholders of the position situation arises, an EGM
and of remedial action being taken. The Directors should will be called for and
report periodically to the shareholders progress on these shareholders will be notified.
remedial actions.
Disclosure of D.1.8 The Board should adequately and accurately disclose the Each Company within 
related party Related Party Transactions in its Annual Report: the Singer Group has
transaction submitted signed and dated
Each Company within the Group to submit signed and dated
declarations mentioning
quarterly declarations mentioning whether they have related
whether they had related
party transactions with the Company as defined in this Code;
party transactions with the
The Company Secretary keeps a record on related party Company during the period
transactions and make necessary disclosures accordingly; ended 31st March 2019.
There should be a process to capture related parties Related Party Transactions
and related party transactions. This process needs to be Review Committee reviewed
operationalised and related party transactions should be related party transactions
properly documented: of the Singer Group which
is described in this Annual
A record/register either in hard or soft form on related party and
Report in pages 152 and 153.
related party transaction should be maintained by the Company;
Related parties and related
This record should ensure that the company captures
party transactions are
information to comply with the respective related party
captured and documented
disclosure requirements imposed by SEC/Accounting
by the Company.
Standards/Auditing Standards and similar regulations.
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REPORTS INFORMATION
D.2 Risk Management and Internal Control

Main Principle
The Board is responsible for determining the nature and extent of the principal risks it is willing to take in achieving its strategic
objectives. The Board should have a process of risk management and a sound system of internal control to safeguard
shareholders’ investments and the Company’s assets. Broadly, risk management and internal control is a process, effected by
a company’s Board of Directors and Management, designed to provide reasonable assurance regarding the achievement of
Company’s objectives.
Governance Code
Principle Reference
Annual D.2.1 The Board should monitor The Company’s Directors are responsible for instituting 
Review of the the Company’s risk a system of internal controls to ensure the effective
effectiveness management and internal implementation of all policies and decisions of the Board.
of Group’s control systems and, at This framework is designed to provide reasonable but not
system of least annually, carry out a absolute assurance that all aspects are safeguarded.
internal review of their effectiveness,
The Company has its own internal audit processes,
control and report on that review
implemented to ensure that effective controls are in place.
in the Annual Report. The
These processes extend across all Company operations.
monitoring and review
should cover all material The internal audit function is headed by the Head of Risk
controls, including financial, Management, who reports to the Board Audit Committee and
operational and compliance Group CEO.
controls.
In relation to the retail network, the internal audit function 

includes an individual risk assessment for every outlet directly
operated by Singer (Sri Lanka) PLC, based on five criteria –
1. Receivables management
2. Inventory management
3. Cash management
4. Internal checks and balances
5. Effectiveness of internal controls
Each location is graded by the Internal Audit Department
based on its adherence to controls and its administrative
performance on the management of the five criteria
mentioned above.
Review the D.2.2 The Directors should Please refer pages 154 to 159 in the Risk Management report. 
need for confirm in the Annual Report
internal audit that they have carried out
function a robust assessment of
the principal risks facing
the Company, including
those that would threaten
its business model, future
performance, solvency
or liquidity. The Directors
should describe those
risks and explain how they
are being managed or
mitigated.
132 5 13 25 35
Governance Code
Principle Reference
D.2.3 Companies should have an Risk Management and Internal Audit are responsible for 
internal audit function. internal audit functions.
Review of the D.2.4 The Board should require The Internal Audit Division of the Company carries out regular 
process and the Audit Committee to carry reviews on the risk management function and internal control
effectiveness out reviews of the process system including internal control over financial reporting.
of risk and effectiveness of risk The Audit Committee monitors, reviews and evaluates the
management management and internal effectiveness of internal control system including the internal
and internal controls, and to document controls over financial reporting. In the reporting period ended
controls to the Board and Board 31st March 2019, the Board of Directors was satisfied with
takes the responsibility the effectiveness of the system of internal controls of the
for the disclosures on risk Company. Refer the Directors’ Statement on Internal Control
management and internal on page 170 for details.
controls.
D.3 Audit Committee

Main Principle
The Board should establish formal and transparent arrangements for considering how they should select and apply accounting
policies, financial reporting, determine the structure and content of corporate reporting, implement internal control and risk
management principles and for maintaining an appropriate relationship with the Company’s Auditors.
Governance Code
Principle Reference
Composition D.3.1 The Board should establish an Audit Committee All members of the Board Audit 
of the Audit exclusively of Non-Executive Directors with a minimum Committee are Independent
Committee of three Non-Executive Directors of whom at least two Non-Executive Directors.
should be independent. If there are more Non-Executive
Details of the members,
Directors. The majority should be independent. The
invitees and Secretary of the
Committee should be chaired by an Independent
Committee are found on pages
Non-Executive Director. The Board should satisfy itself that
148 and 149 of the “Audit
at least one member of the Audit Committee has recent
Committee Report” under the
and relevant experience in financial reporting and control.
heading “Composition of the
Committee”.
Terms of D.3.2 The Audit Committee should have a written Terms of Company established written 
Reference Reference, dealing clearly with its authority and duties. Audit Committee charter which
of the Audit The Audit Committee’s written Terms of Reference addressed Terms of Reference
Committee must address: of the Audit Committee and
further details are disclosed
The Committee’s purpose – which, at minimum,
in Audit Committee Report
must be to –
on pages 148 and 149 of this
zz Assist Board oversight of the: Annual Report.
zz Preparation, presentation and adequacy of disclosures
in the Financial Statements, in accordance with the Sri
Lanka’s Accounting Standards;
zz Compliance with financial reporting requirements,
information requirements of the Companies Act and
other relevant financial reporting related regulations
and requirements;
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REPORTS INFORMATION
Governance Code
Principle Reference
Terms of zz Process to ensure that the Company’s internal controls

Reference and risk management procedures are adequate to meet
of the Audit the requirements of the Sri Lanka Auditing Standards;
Committee zz Assessing the Company’s ability to continue as a going
concern in the foreseeable future:
zz Performance of the Company’s internal audit function;
zz Process to the identification, monitoring and
management of significant business/financial risk; and
zz Independence and performance of the Company’s
external audit.
zz The duties and responsibilities of the Audit Committee
should at a minimum include those set out below:
zz Making recommendations to the Board, pertaining to
appointment, reappointment and removal of External
Auditors and to approve the External Auditors;
zz To develop and implement policy on the engagement
of the External Auditor to supply non-audit services,
taking into account relevant ethical guidance regarding
the provision of non-audit services by the external
audit firm; and to report to the Board, identifying any
matters in respect of which it considers that action or
improvement is needed and making recommendations
as to the steps to be taken;
zz To review and monitor the External Auditor’s
independence and objectivity and the effectiveness of
the audit process, taking into consideration relevant
Sri Lankan professional and regulatory requirements;
zz Discussion of the audit plan, key audit issues, their
resolution and management responses;
zz Review the Company’s annual Audited Financial
Statements and Quarterly Financial Statements with
management and the Auditor to ensure compliance with
the Sri Lanka Accounting Standards and other relevant
laws and regulations;
zz To review significant financial reporting judgements;
zz Review the Company’s earnings press releases and
financial information and earnings guidance provided to
analysts and rating agencies;
zz Discussion of policies and practices with respect to risk
assessment and risk management;
zz Ensuring that a process of sound system of internal
control is in place;
134 5 13 25 35
Governance Code
Principle Reference
zz Ensuring that at least once in every three years an

review of the Board’s risk management, internal
controls, business continuity, planning and information
security systems are carried out and appropriate
remedial action recommended to the Board;
zz Ensuring that an effective internal audit function is
in place and monitor and review the internal audit
activities;
zz Meeting separately, periodically, with Management,
auditors and internal auditors;
zz Ensuring that there is a mechanism for the confidential
receipt, retention and treatment of complaints alleging
fraud, received from internal/external sources and
pertaining to accounting, internal control or other such
matters;
zz Assuring confidentiality to whistle-blowing employees;
zz Setting clear hiring policies for employees or former
employees of the Auditors; and
zz Reporting regularly to the Board of Directors.
Disclosure D.3.3 zz A separate section of the Annual Report should Names of the members of the 
of names of describe the work of the Committee in discharging its Audit Committee are given on
the members responsibilities. The report should include – page 148 under the section
of the Audit z z The names of the Directors (persons in the Parent
on the “Composition of the
Committee Company’s Committee in the case of a Group Committee” and disclosure
Company) comprising the Audit Committee should be on the independence of the
disclosed in the Annual Report. Auditors is found on page
169 under the Auditors’ in the
z z The number of meetings held and attendance of
“Annual Report of the Board of
each Director; Directors on the Affairs of the
z z The scope of work and how its roles and responsibilities Company” on pages 163 to 169.
were discharged;
zz An explanation of how it has assessed the effectiveness
of the external audit process and the approach taken to
the appointment or reappointment of the external audit,
and information on the length;
zz If the External Auditor provides non-audit services, an Report by the Audit Committee 
explanation of how audit objectivity and independence is given on pages 148 and 149.
are safeguarded; and the Committee should also make
a determination of the independence of the Auditors
and should disclose the basis of such determination in
the Annual Report.
zz The Annual Report should contain a Report by the Audit Report by the Audit Committee 
Committee, setting out the manner of compliance by is given on pages 148 and 149.
the Company, in relation to the above, during the period
to which the Annual Report relates.
161 271 135
REPORTS INFORMATION
D.4 Related Party Transactions Review Committee

Main Principle
The Board should establish a procedure to ensure that the Company does not engage in transactions with “related parties”
in a manner that would grant such parties “more favourable treatment” than that accorded to third parties in the normal
course of business.
Governance Code
Principle Reference
Disclosure of D.4.1 A related party and related party transactions Related party and related party 
Related Party will be as defined in LKAS 24. transactions are defined as per
Transactions LKAS 24.
Review
Committee
D.4.2 The Board should establish a Related Party Transactions In compliance with Section 9 
(RPT) Review Committee consisting exclusively of Non- of the Listing Rules of the CSE,
Executive Directors with a minimum of three Non-Executive The Committee comprises two
Directors of whom the majority should be independent. Independent Non-Executive
Executive Directors may attend by invitation. The Chairman Directors, and one Executive
should be an Independent Non-Executive Director Director
appointed by the Board.
The Committee is chaired by
an Independent
Non-Executive Director.
D.4.3 RPT Review Committee should have written terms of The Related Party Transactions 
reference dealing clearly with its authority and duties Review Committee Report
which should be approved by the Board of Directors. sets out the functions of the
The RPT Review Committee’s written terms of reference Committee which is given on
must address – pages 152 and 153.
zz A procedure for documenting related parties in
accordance with the definitions in LKAS 24 and the
CSE Listing Rules.
zz A procedure to obtain a statement of related party
interest from each such related party at least once in
each quarter, when there’s a change in the status and in
any event prior to entering into any transaction between
such related parties and the Company, its parent or any
of subsidiaries, sub-subsidiaries, fellow subsidiaries,
associates, joint ventures and any other entities which
are considered related parties as defined in LKAS 24
unless they are exempted related party transactions as
defined in CSE Listing Rules.
z z Key Management Personnel of the Company responsible
for contracting, procurement, payments, and any

other channel through which an inflow or outflow of
resources can result, should have a list of all related
parties and have a process in place to capture
and report any related party transaction within their
area of responsibility.
zz A procedure to inform all related parties of what
constitutes exempted related party transactions.
136 5 13 25 35
Governance Code
Principle Reference
zz A procedure and guideline to delegate to Key

Management Personnel to deal with recurrent related
party transactions as defined in the CSE Listing Rules.
zz A procedure for the RPT Review Committee to review
and recommend to the Board matters relating to such
transactions.
zz Any interested Directors should not participate at
the meeting at which the transaction relating to him/
her is discussed unless invited to seek clarification/
information.
zz A procedure and definition of disclosure required to
be made by the Company on an annual basis, those
requiring immediate disclosure and those requiring
shareholder approval.
z z A procedure to identify related party transactions which
require immediate disclosure as per the CSE listing

rules and to ensure that required disclosures are made
by the Company to the Colombo Stock Exchange in
accordance with the CSE Listing Rules.
z z A procedure to identify related party transactions which
require shareholder approval by special resolution at an

Extraordinary General Meeting.
zz The Company Secretary should maintain a permanent
record in manual or electronic form of such statements,
submissions, approvals, and minutes.
zz Review and recommend to the Board the related party
disclosures to be made in the Annual Report of the Company.
D.5 Code of Business Conduct and Ethics

Companies must adopt a Code of Business Conduct and Ethics for Directors, Key Management Personnel and all other
employees including but not limited to; dealing with shares of the Company; compliance with listing rules; bribery and
corruption; confidentiality; encouraging that any illegal, fraudulent and unethical behaviour be promptly reported to those
charged with governance. The Company must disclose waivers of the code for Directors, if any –
Governance Code
Principle Reference
Disclosure D.5.1 All companies must disclose whether they have a Code Company has an internally- 
of Code of of Business Conduct and Ethics for Directors and Key developed Code of Conduct.
Business Management personnel and if they have such a code, All employees including
Conduct and make an affirmative declaration in the Annual Report that Directors, Key Managers and
Ethics all Directors and Key Management Personnel have Senior Managers are bound
declared compliance with such code, and if unable to by the Company’s written
make that declaration, state why they are unable to do so. Code of Ethics that includes
the following aspects:
Each company may determine its own policies in
the formulation of such a code, but all companies zz Exercise honesty, objectivity
should address the following important topics in their and diligence when
respective codes: performing one’s duties.
zz Conflict of interest;
zz Bribery and corruption;
161 271 137
REPORTS INFORMATION
Corporate Governance CA Sri Lanka Requirement of the Code Compliant with the Code Compliance
Principle Code
Reference
zz Entertainment and gift; zz Avoid situations where personal interest might

zz Accurate accounting and conflict with the interest of the Company; and if
record-keeping; so, disclose such interest in advance.
zz Fair and transparent procurement zz Maintain confidentiality of commercial and price
practices; sensitive information.
zz Corporate opportunities; zz Work within applicable laws and regulations.
zz Confidentiality; zz Safeguard the Company’s assets.
zz Protection and proper use of zz Avoid conduct that will reflect badly on the
company assets including person concerned or the Company’s image.
information assets; zz Strictly avoid giving or accepting any kind of
zz Compliance with laws, rules and bribe, either directly or indirectly.
regulations (including insider zz Strictly avoid making contributions for political
trading laws); and funds, either directly or indirectly.
zz Encouraging the reporting zz Strictly avoid any kind of sexual harassment.
of any illegal, fraudulent or
The Company has implemented a formal whistle-
unethical behaviour.
blowing procedure and encourages any employee
who suspects wrong doing at work, whether by
Management, peers or any other employee, to
raise their concerns.
Other Policies
In addition, the Company implements
policies covering:
zz Recruitment and selection
zz Financial integrity/Financial Manual
zz Use of Company property including computers
zz Non-harassment in the work place
zz Environment, safety and health
zz Security of IT system
D.5.2 The Company should have a Company has established policy and process to 
process in place to ensure that ensure that material and price sensitive information
material and price sensitive is immediately disclosed to the Colombo Stock
information is promptly identified Exchange immediately after relevant decisions
and reported in accordance with are made by the Board of Directors. This task is
the relevant regulations. assigned to the Company Secretary and it is a
prime responsibility of the Company Secretary.
D.5.3 The Company should establish a The policy in place and any share transaction 
policy, process for monitoring and done by Board Director need to be immediately
disclosure of shares purchased disclosed to the Company Secretary and Company
by any Director, Key Management Secretary will inform such transactions to the
Personnel or any other employee Colombo Stock Exchange. Any share transaction
involved in financial reporting. done by Key Management Personnel other than
Board Directors should inform such transactions to
Compliance Officer of the Company.
138 5 13 25 35
Principle Code
Reference
Affirmative D.5.4 The Chairman must affirm in the Please refer Chairman’s Letter on pages 14 and 
Statement by the Company’s Annual Report that 15 in this Report.
Chairman a code of conduct and ethics
has been introduced company-
wide and the procedure for
disseminating, monitoring and
compliance with that code. He
must also disclose that he is not
aware of any violation of any of the
provisions of the code of business
conduct and ethics.
D.6 Corporate Governance Disclosures

Directors should be required to disclose the extent to which the Company adheres to established principles and practices of
good Corporate Governance.
Principle Code
Reference
Disclosure D.6.1 The Directors should include in This Report from page 102 to 147 sets out the 
of Corporate the Company's Annual Report, manner and extent to which Singer (Sri Lanka) PLC
Governance a Corporate Governance Report has complied with the principles and provisions of
setting out the manner and the Code.
extent to which the Company has
complied with the principles and
provisions of this Code.
Shareholders
E. Institutional Investors
E.1 Shareholder Voting
Main Principle
Institutional shareholders have a responsibility to make considered use of their votes and should be encouraged to ensure their
voting intentions are translated into practice.
Principle Code
Reference
Communication E.1.1 A listed Company should conduct In order to avoid conflict of interest by nurturing 
with Shareholders a regular and structured dialogue the mutual understanding, the Board carries
with shareholders based on out dialogues with its shareholders at General
a mutual understanding of Meetings. In this regards, the Annual General
objectives. Arising from such Meeting (AGM) and Extraordinary General Meetings
dialogue, the Chairman should (EGM) of the Company plays a critical role.
ensure the views of shareholders Voting of the shareholders is crucial in carrying a
are communicated to the Board resolution at the AGM/EGM. The Chairman who
as a whole. plays the role of the agent and communicates the
views and queries of the shareholders to the Board
and the Key and Senior Management in order to
ensure that the views are properly communicated
to the Company.
161 271 139
REPORTS INFORMATION
Principle Code
Reference
Head of Investor Relations is a dedicated

position to communicate with shareholders if
necessary. Investors and Shareholders can directly
communicate and share their views and it will be
communicated to the Board for necessary actions.
Shareholders are provided with Quarterly

Financial Statements and the Annual Report,
which the Company considers as its principle
communication with them and other stakeholders.
These reports are also available on the Company’s
website – www.singersl.com and are provided to
the Colombo Stock Exchange.
Any information that the Board considers as
price sensitive is disseminated to the shareholders
as necessary.
E.2 Evaluation of Governance Disclosures

Principle Code
Reference
Due weight E.2.1 When evaluating Companies’ The Institutional Investors are at liberty to give due 
by Institutional governance arrangements, weight to matters relating to the Board structure
Investors particularly those relating to and composition, when they consider resolutions
Board structure and composition, relating to Board structure and composition.
institutional investors should be
encouraged to give due weight
to all relevant factors drawn to
their attention.
F. Other Investors
F.1 Investing/Divesting Decision
Governance Code
Principle Reference
Individual F.1 Individual shareholders, investing Individual investors are encouraged to carry out 
Shareholders directly in shares of companies adequate analysis or seek independent advice in
should be encouraged to carry investing or divesting decisions.
out adequate analysis or seek
independent advice in investing or
divesting decisions.
Individual F.2 Individual shareholders should Individual shareholders are encouraged to 

Shareholder be encouraged to participate in participate in General Meeting of the Company and
Voting General Meetings of companies exercise their voting rights.
and exercise their voting rights.
140 5 13 25 35
G. Internet of things and Cyber Security

Governance Code
Principle Reference
G.1 The Board should have a process to identify The Board assigned this responsibility to 
how in the organisation’s business model, IT the Information Technology Division and
devices within and outside the organisation Director – IT is mainly assigned to complete
can connect to the organisation’s network this task.
to send and receive information and the
IT policy and Cyber security policies
consequent cyber security risks that may
have been developed and needs to be
affect the business.
presented to the Board for approvals.
Internal and external parties could have
computing devices embedded in everyday
objects which may enable them to
interconnect with the Company’s network to
send and receive data. Such access could be
authorised or unauthorised.
G.2 The Board should appoint a Chief Information Director IT is appointed as a Chief 
Security Officer (CISO) with sufficient Information Security Officer.
expertise, authority and budgetary allocation
IT policy and cybersecurity policy has
to introduce and implement a cybersecurity
been developed
risk management policy which should be
approved by the Board.
The policy should include a robust
cybersecurity risk management process,
incident response system, vendor
management system, disaster recovery
plan and a governance structure to monitor
effective implementation, reporting and the
need for cybersecurity insurance.
G.3 The Board should allocate regular and Not Complied. 

adequate time on the Board meeting agenda
IT policies and Cybersecurity policies are to
for discussions about cyberrisk management:
be presented to the Board.
z z The matters taken up for the discussion
on the Board meeting agenda may

include; Potential cybersecurity risks in the
Company’s business model.
zz CISO’s security strategy and status of the
current projects.
zz Compliance with the cybersecurity risk
management process and incident report.
zz Findings and recommendations from
independent reviewers.
G.4 The Board should ensure the effectiveness of Not Complied. 

the cybersecurity risk management through
Security assessment has been carried
independent periodic review and assurance.
out and in the process of taking the
The scope and the frequency of the corrective actions.
independent periodic reviews could
be determined based on the industry
vulnerability, Company’s business model and
incident findings.
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REPORTS INFORMATION
Governance Code
Principle Reference
G.5 The Board should disclose in the Annual IT Risk assessments are carried out 
Report, the process to identify and manage according to ISO 27001:2013 and ISO
cybersecurity risks. 31000:2018 standards, at least annually to
identify the risks on the IT environment of
SSLP. Identified risks will be evaluated and
proper measures are taken by the SSLP IT
team to mitigate or minimise the threats.
The Board of Directors shall be updated
regarding the controls in place to mitigate
cyber risks, and on possible cyberrisks that
the company is exposed to.
H. Environment Society and Governance (Esg)

H.1 ESG Reporting
Main Principle
The Company’s Annual Report should contain sufficient information to enable investors and other stakeholders to assess how
ESG risks and opportunities are recognised, managed, measured and reported.
Environmental, social and governance considerations can affect a company’s ability to execute its business strategy and create
value. While many ESG factors are “non-financial”, their management and likely impact have financial consequences. Hence,
they are important factors to be built into a company’s business model, strategy, governance and risk management framework.
ESG factors relevant to the Company could impact the followings:
zz Access to financial capital
zz Cost savings and productivity
zz Brand value and reputation
zz Employee recruitment
zz Employee retention
zz Access to markets
zz License to operate
zz Market capitalisation
Integrating ESG policies and practices into a company’s strategy, business model, governance and risk management, and reporting
its likely impact and implications are increasingly seen by investors as material to their investment decisions. Further, investors want
to understand the risks associated with ESG issues, as this is seen as a the risks associated with ESG issues, as this is seen as a
how well companies are managing how well companies are managing key test of the long-term sustainability of the Company. They
are also increasing interested in the opportunities presented by companies that are well equipped to benefit from this.
Governance Code
Principle Reference
H.1.1 Companies should provide information in Sustainability principles related to ESG 

relation to – factors are embedded in the operations of
the Company and initiatives implemented
zz The relevance of environmental, social
to ensure adherence by the Company are
and governance factors to their business
discussed in the Management Discussion
models and strategy.
and Analysis and compliance section of
zz How ESG issues may affect their business. this report.
zz How risks and opportunities pertaining to
ESG are recognised managed, measured
and reported.
142 5 13 25 35
H.1.2 Environmental Factors

Governance Code
Principle Reference
H.1.2 Environmental governance of an organisation Sustainability principles related 

should adopt an integrated approach that takes into to environmental factors are
consideration the direct and indirect economic. Social, embedded in the operations
health, and health and environmental implications of their of the Company and initiatives
decisions and activities, including: implemented to ensure
adherence to environmental
zz pollution prevention.
governance by the Company are
zz sustainable resource use discussed in the Management
(e.g: water, energy). Discussion and Analysis
zz climate change. and Compliance section of
zz protection of environment. this report.
zz biodiversity.
zz restoration of natural resources.
H.1.3 Social Factors

Governance Code
Principle Reference
H.1.3.1 Social governance of an organisation should include its Sustainability principles related to 
relationship with the community, customers, employees, social factors are embedded in
suppliers, outsourced providers and any other party that the operations of the Company
can influence or be influenced by the organisation’s and initiatives implemented
business model. to ensure adherence to social
governance by the Company are
z z The organisation should adopt an integrated approach
discussed in the Management
to building a relationship with the community and
Discussion and Analysis
striving for sustainable development including
and Compliance section of
responsible community engagement, fair competition,
this report.
thereby demonstrating corporate social responsibility.
zz The organisation should adopt an integrated approach
to building a relationship with customers. This includes
establishing a process for customer engagement,
product responsibility and product recall and other
matters relevant to the organisation’s business model.
zz The labour practice related governance of an

organisation should encompass all policies and
practices in relation to work performed by or on behalf
of the organisation in accordance with its business
model, and should also include policies and practices
such as equal opportunity, career development and
training, reward and recognition, conditions of work,
work-life balance and industrial relations.
zz The organisation should have policies and
procedures to ensure that suppliers and outsourced
providers comply with social governance norms of
the Company.
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REPORTS INFORMATION
H.1.4 Governance
Governance Code
Principle Reference
H.1.4.1 zz Companies should establish a governance Process of managing risks in line with 
structure to support its ability to create value ESG aspects is discussed in the Risk
and manage risks in the short, medium and management report.
longterm, recognising managing and reporting
on all pertinent aspects of ESG.
zz The Company should recognise the key
resources/capitals deployed in its business
and establish financial and non-financial
measures for resource/capital management
and related outputs and outcomes.
zz The Company should have a process to
ascertain, assess and mange risks which have
an impact on the sustainability of the Company.
zz The Company should have a process
to recognise material matters relating to
significant stakeholders and a method of
engagement relevant to their level of interest
and influence.
zz The disclosures should deal with how the
Company has complied with the mandatory
and voluntary codes of corporate governance
and how its leadership structure, organisational
culture, code of conduct and business model
supports sustainability of the Company in the
short, medium and long-term.
H.1.5 Board’s Role on ESG Factors
Corporate SEC and Requirement of the Code Compliant with the Code Compliance
Governance CA Sri Lanka
Principle Code
Reference
H.1.5.1 ESG reporting is a Board’s responsibility and it The Company follows ESG reporting 
is designed to add value by providing a credible and is disclosed in line with Global
account of the Company’s economic, social Reporting Initiatives (GRI) guidelines in
and environmental impact. ESG reporting and this annual report and described from
disclosure should be formalised as part of the pages 283 to 288.
Company’s reporting process and take place
on a regular basis. ESG reporting should link
sustainable issues more closely with strategy.
ESG reporting may be built on a number of
different guidelines, such as –
zz Integrated Reporting Framework
zz The Global Reporting Initiative Guidelines
144 5 13 25 35
Section B
This section covers the Company’s extent of adherence to the requirements of the Continuous Listing Requirements Section
7.10 on Corporate Governance Rules for Listed Companies issued by the Colombo Stock Exchange. This reflects the
Company’s level of conformity to CSE’s Listing Rules which comprise the following fundamental principles:
zz Non-Executive Directors
zz Independent Directors
zz Disclosures Relating to Directors
zz Remuneration Committee
zz Audit Committee
The following table presents the details of the Company’s compliance with Section 7.10 and Section 9 of the CSE Listing Rules
on Corporate Governance as at 31st March 2019:
Section Rule No. Corporate Governance Rule Details of Compliance Compliance
Board of Directors
Non-Executive 7.10.1 Number of Non-Executive Directors – One-third The Board of Directors comprises 
Directors of the total number of Directors, subject to a ten Directors, eight of whom are
minimum of two. Non-Executive Directors.
Independent 7.10.2 (a) Number of Independent Directors – One-third Five of the Non-Executive Directors are 
Directors of Non-Executive Directors, subject to a independent.
minimum of two.
7.10.2 (b) Each non-Executive Director should submit a All Non-Executive Directors have 
declaration of independence/non-independence. submitted declarations.
Independent Non-Executive Directors
have submitted declarations confirming
their independence.
Disclosures 7.10.3 (a) Names of Independent Directors should be Please refer page 114. 
relating to disclosed in the Annual Report.
Directors
7.10.3 (b) The Board shall make a determination annually The Board has determined Mr. M.H. 
as to the Independence or Non-independence of Jamaldeen as an Independent Non-
each Non-Executive Director. Executive Director notwithstanding
that he is a Director of Hayleys PLC,
the Parent Company as his role is not
compromised by being on both Boards.
7.10.3 (c) A brief résumé of each Director should be Please refer Board of Directors section 
included in the Annual Report including the area of this report on pages 18 to 21.
of experience.
7.10.3 (d) Provide brief résumé of any new Director Please refer Board of Directors section 
appointed to the Board. of this report on pages 18 to 21.
Remuneration Committee
Composition 7.10.5 (a) Number of Independent Non-Executive Directors
in the Committee to be –
zz a minimum of two (where a Company has only The Committee comprises three 
two Directors on the Board), or Independent Non-Executive Directors.
zz in all other instances majority of whom to
be independent.
161 271 145
REPORTS INFORMATION
Separate Committee to be formed for the A separate Remuneration Committee 

Company or the Listed Parent’s Remuneration was formed for the Company.
Committee to be used.
Chairman of the Committee to be a Non-Executive The Committee is chaired by an 
Director. Independent Non-Executive Director.
Function 7.10.5 (b) Function of the Committee. The Remuneration Committee Report 
sets out the functions of the Committee.
Disclosure 7.10.5 (c) The Annual Report should set out – Please refer page 150. 
in the Annual Names of Directors comprising the
Report Remuneration Committee
Statement of Remuneration policy Please refer Remuneration Committee 
report on page 150.
Aggregate remuneration paid to Executive and Please refer page 150. 
Non-Executive Directors
Audit Committee
Composition 7.10.6 (a) Number of Independent Non-Executive Directors
in the Committee to be –
zz a minimum of two (where a Company has only The Committee comprises three 
two Directors on the Board), or Independent Non-Executive Directors.
zz in all other instances of Non Executive Directors
a majority of whom to be independent.
Separate Committee to be formed for the Company A separate Audit Committee was formed 
or the Listed Parent’s Committee to be used. for the Company and the Singer Group.
Chairman of the Committee to be a Non-Executive The Committee is chaired by an 
Director. Independent Non-Executive Director.
Chairman or one member of the Committee The Chairman of the Committee is a 
to be a member of a recognised professional member of a recognised professional
accounting body. accounting body.
CEO and CFO to attend Committee meetings, unless Group CEO attends by invitation. 
otherwise determined by the Audit Committee. CFO attends by invitation.
Function 7.10.6 (b) Function of the Committee. The Audit Committee Report sets out 
the functions of the Committee.
Disclosure 7.10.6 (c) zz Names of Directors comprising the Please refer pages 148 and 149. 
in the Annual Audit Committee
Report
zz The Audit Committee shall make a Please refer Audit Committee Report 
determination of the independence of on pages 148 and 149.
the Auditors and disclose the basis for
such determination
zz The Annual report shall contain a Report of the Please refer Audit Committee Report 
Audit Committee in the prescribed manner. on pages 148 and 149.
146 5 13 25 35
Related Party Transactions Review Committee

Composition 9.2.2 Combination of Non-Executive Directors and The Committee comprises two 
Independent Non-Executive Directors and may Independent Non-Executive Directors,
include Executive Directors at the option of the and one Executive Director.
Comapny.
9.2.3 Separate Committee to be formed for the A separate Related Party Transactions 
Company or the Listed Parent’s Committee to Review Committee was formed for the
be used. Company and the Singer Group .
Function of the Committee. The Related Party Transactions Review 

Committee Report sets out the functions
of the Committee.
Disclosure 9.3.2 (c) The Annual Report shall contain a Report of the Please refer Related Party Transactions 
in the Annual Related Party Transactions Review Committee in Review Committee Report on pages 152
Report the prescribed manner. and 153.
Board, Audit Committee, Remuneration Committee, Nomination Committee and Related Party Transactions Review
Committee Attendance
The number of meetings of the Board, Audit Committee, Remuneration Committee and Related Party Transactions Review
Committee and individual attendance by members are as follows:
Number of Meetings, Circular Resolutions and Dates
Board Meetings 4
Audit Committee Meetings 4
Remuneration Committee Meetings 1
Nomination Committee Meetings –
Related Party Transactions Review Committee Meetings 3
Board Meetings Audit Committee Meetings Remuneration Committee Meetings Nomination Committee Meetings Related Party Transactions
Review Committee Meetings
14th May 2018 14th May 2018 25th July 2018 – 6th August 2018
8th August 2018 6th August 2018 7th November 2018
9th November 2018 7th November 2018 5th February 2019
7th February 2019 5th February 2019
161 271 147
REPORTS INFORMATION
Individual Attendance
Name of Director Directorship status Board Audit Related Party Transaction Nomination Remuneration
Members Committee Review Committee Committee Committee
[Singer (Sri Lanka) PLC]
Mr. A.M. Pandithage – ED Executive 4/4 – – –
Mr. K.D.D. Perera – NED Non-Executive 3/4 – – –
Mr. M.H. Wijewardene – CEO/ED – Executive 2/2 – Appointed to the –

appointed w.e.f. 1st November 2018 Committee on
5th February 2019
1/1
Mr. D.H. Fernando – INED Independent 3/4 – – –

Non-Executive
Mr. S.C. Ganegoda – NED* Non-Executive 3/4 – – –
Mr. Deepal Sooriyaarachchi – INED Independent 4/4 4/4 3/3 – 1/1

Non-Executive
Mr. M.H. Jamaldeen – INED Independent 3/4 3/4 – – 0/1

Non-Executive
Mr. D.K. de S. Wijeyeratne – INED – Independent 4/4 4/4 Appointed to the – 1/1
appointed w.e.f. 1st April 2018 Non-Executive Committee on
14th May 2018
3/3
Ms. O.D. Gunewardene – INED – Independent 2/3 – – – –

Appointed w.e.f. 1st August 2018 Non-Executive
Mr. S.Goodman – NED – Appointed Non-Executive 0/3 – – – –

w.e.f. 26th June 2018
Mr. G.J. Walker – NED – Resigned Non-Executive 0/2 – 0/1 – –

w.e.f. 29th November 2018**
Mr. H.A. Pieris – ED – Resigned Executive 2/2 2/2 1/1 – –

w.e.f. 31st October 2018
*Mr. K.K.L.P. Yatiwella (Alternate Director to Mr. S.C. Ganegoda) attended one meeting.
**Mr. M.H. Wijewardene – (Ceased to be Alternate Director to Mr. G.J. Walker w.e.f. 29th November 2018) attended two meetings.
ED – Executive Director
NED – Non-Executive Director
INED – Independent Non-Executive Director
148 5 13 25 35
AUDIT COMMITTEE REPORT

Preamble Activities in 2018/19
The Committee is empowered to review and monitor the Financial Reporting
financial reporting process of Singer Group so as to provide The Committee along with the Board, internal audit and
additional assurance on the reliability of the Financial external audit reviewed the Interim Financial Statements and
Statements through a process of independent and objective the Annual Financial Statements to ensure compliance with
review. As such, the Audit Committee acts as an effective mandatory, statutory and other regulatory requirements laid
forum in assisting the Board of Directors in discharging its down by the authorities, prior to publication.
responsibilities on ensuring the quality of financial reporting
and related communications to the shareholders and the Internal Audit, Risk and Control
public.
The Committee also provides a forum for the impartial review
of the reports of internal and external audits and to take into
Composition of the Committee consideration findings and recommendations stated therein
The Audit Committee consists of three Independent Non- relating to significant business risks and control issues.
Executive Directors and is chaired by an Independent Non-
Executive Director. The Committee reviewed the Group audit plan for the year
and agreed its budget and resource requirements. It reviewed
Audit Committee Members interim and year-end summary reports and management’s
responses. The Committee carried out an evaluation of the
Mr. D.K. de S. Wijeyeratne – Chairman – Independent
performance of the internal audit function and was satisfied
Non-Executive Director (Appointed w.e.f. 1st April 2018).
with the effectiveness of the function.
Mr. D. Sooriyaarachchi – Independent Non-Executive Director
Mr. M.H. Jamaldeen – Independent Non-Executive Director The Committee reviewed the Compliance Officer’s Report
on the Singer Group’s compliance with the applicable laws
Brief profiles of the Directors are given on pages 18 to 21 of and regulations, including internal policy codes of conduct
this Annual Report. of its employees.
Hayleys Group Services (Private) Limited functions as Meetings of the Committee

the Secretary to the Committee. The Finance Director/
During the reporting period, Four Audit Committee meetings
Compliance Officer, Head of Risk Management, Audit Staff,
were held to discuss the Reports of the Internal and
Representatives of External Auditors and when necessary, the
External Auditors and Interim Financial Statements. The
Chairman, the Group Chief Executive and relevant Operational
Financial Statements for the twelve months period ended
Directors and Managers attend the meetings by invitation.
31st March 2019 were also discussed at the meeting held on
the 14th May 2019. The minutes of the meetings were tabled
Responsibilities and Duties of the Committee at the meetings of the Board of Directors for information and
The Audit Committee’s authority, responsibilities and specific necessary action.
duties have been formalised through an Audit Committee
Charter. By this, the Audit Committee is empowered among The attendance of the Audit Committee meetings held during
other things, to examine any matters relating to the financial the reporting period ended 31st March 2019 under review is
affairs of the Singer Group and to review the adequacy given on page 147 of this Annual Report:
of the internal control procedures, coverage of internal
and external audit programmes, disclosure of accounting
policies and compliance with statutory and corporate
governance requirements.
161 271 149
REPORTS INFORMATION
Audit Committee Report
External Audit Appreciation

The external audit approach and scope was reviewed and I appreciate the contribution made by Mr. H.A. Peiris former
discussed by the Committee with the External Auditors and Group CEO of the Company who assisted the Committee
Management prior to the commencement of the audit. The participating by invitation.
External Auditors informed the Committee on an ongoing basis
regarding matters of significance that were pending resolution. I wish to thank all members who served in the Committee
Before the conclusion of the audit, the Committee met with the during the period and for their contribution to the deliberations
External Auditors without Management being present. External of the Committee.
Auditors discussed the audit issues with the Audit Committee
and the Management to agree on audit issues.
The Audit Committee recommended to the Board of Directors

that Messrs KPMG, Chartered Accountants be reappointed
as the External Auditors for the financial year 2019/20, subject Dilip Kumar de Silva Wijeyeratne
Chairman – Audit Committee
to the approval of the shareholders at the Annual General
Meeting (AGM) and the required resolution will be put to the 16th May 2019
shareholders at the AGM. Colombo
Sri Lanka Accounting Standards

Committee reviewed the revised policy decisions relating to
adoption of new and revised Sri Lanka Accounting Standards
(SLFRS/LKAS) applicable to the Group companies and made
recommendations to the Board of Directors.
Progress of implementation of SLFRS 9 and SLFRS 15:

The Committee continuously monitored the progress of
implementation of SLFRS 9 and SLFRS 15 that have been
issued with effective date being 1st January 2018.
The Committee would continue to monitor the compliance

with relevant Accounting Standards and keep the Board of
Directors informed at regular intervals.
The Committee has pursued the support of Messrs KPMG to

assess and review the existing SLFRS policies and procedures
adopted by the Group.
150 5 13 25 35
REMUNERATION
COMMITTEE REPORT
Composition of the Committee Meetings of the Committee
Remuneration Committee consists of three Independent Non- The Committee meets from time to time and reviews the
Executive Directors and is chaired by an Independent Non- Group’s remuneration and fee structures to assure alignment
Executive Director. with strategic priorities and with compensation offered by
competitor companies.
Remuneration Committee Members
The Committee met once during the period and the
Mr. M.H. Jamaldeen – Chairman – Independent Non-Executive
attendance of the members given on page 147 of this
Director
Annual Report.
Mr. D. Sooriyaarachchi – Independent Non-Executive Director
Mr. D.K. de S. Wijeyeratne – Independent Non-Executive
Director (Appointed on 14th May 2018) Appreciation
I appreciate the contribution made by Mr. H.A. Peiris former
Brief profiles of the Directors are given on pages 18 to 21 of Group CEO of the Company who assisted the Committee
this Annual Report. participating by invitation.
Finance Director functions as the Secretary to the Committee. I wish to take this opportunity to thank all members who
served in the Committee during the period and for their
The Chairman of the Company participated as an observer to contribution to the deliberations of the Committee.
the Committee. Group CEO assist the Committee by providing
the relevant information and participate in its analysis and
deliberations except when their own compensation packages
are reviewed.
Responsibilities and Duties of the Committee

Mohamed Hisham Jamaldeen
The scope of the Committee is to “look into fees, remuneration Chairman – Remuneration Committee
and perquisites of Independent Directors, Executive Directors
of the Board of the Company and Key Management and 16th May 2019
approve recommendations made by the Group CEO. Colombo
Remuneration and perquisites of Group CEO is reviewed and

approved by the Parent Company Remuneration Committee
(Hayleys PLC) and it is not under the scope of the board
remuneration Committee of the Company.
The Committee also reviews the policies pertaining to the

remuneration and perquisites of the executives of the Group.
Remuneration Policy
A primary objective of compensation packages is to attract
and retain a highly qualified and experienced work force, and
reward performance. These compensation packages should
provide compensation appropriate for each business within
the Group and commensurate with each employee’s level of
experience and contribution, bearing in mind the business
performance and long-term shareholder returns.
161 271 151
REPORTS INFORMATION
NOMINATION
COMMITTEE REPORT
Composition of the Committee Re-election of Directors at the Annual General
Nomination Committee consists of one Independent Non- Meeting
Executive Director, one Non-Executive Director and two Mr. M.H. Wijewardene and Ms. O.D. Gunawardena being
Executive Directors as at the end of the reporting period, Directors appointed to the Board during the financial year
31st March 2019. being eligible would present themselves for re-election at the
forthcoming Annual General Meeting in terms of Article 24 (10)
Nomination Committee Members of the Articles of Association of the Company.
Mr. A.M. Pandithage – Chairman – Executive Director
In terms of Article 24 (4) of the Articles of Association of the
Mr. K.D.D. Perera – Non-Executive Director Company, Mr. D. Sooriyaarachchi retire by rotation and being
Mr. M.H. Jamaldeen – Independent Non-Executive Director eligible offer himself for re-election and the shareholders
Mr. H.A. Pieris – Group CEO – Executive Director (Resigned will be requested to re-elect him at the forthcoming Annual
w.e.f. 31st October 2018 General Meeting.
Brief profiles of the Directors are given on pages 18 to 21 of Appointment of Over 70 Years Director
this Annual Report.
Mr. S.H. Goodman being over 70 years of age was
appointed as a Director at the last Annual General Meeting
Responsibilities and Duties of the Committee held on 26th June 2018 for a period of one year in terms
of Section 211 of the Companies Act No. 07 of 2007.
zz Consideration of making any appointment of new Directors Mr. Goodman has intimated that he does not wish to present
or re-electing current Directors. himself for re-appointment in terms of Section 211 of the
zz Provide advice and recommendations to the Board on any Companies Act No. 07 of 2007 at the forthcoming Annual
such appointment. General Meeting and would thus cease to be a Director on
conclusion of the Annual General Meeting on 25th June 2019.
zz Review criteria such as qualifications, experience and
key attributes required for eligibility to be considered for
appointment to the Board and Key Management Personnel Appreciation
in the Company. I also appreciate the contribution made by Mr. H.A. Pieris who
zz Consider if a Director is able to and has been adequately served as a member of the Committee and resigned w.e.f.
carrying out his or her duties as a Director taking into 31st October 2018.
consideration the Director’s number of listed Company
Boards on which the Director is represented and other I wish to take this opportunity to thank all members who
principal commitments. served in the Committee and for their contribution to the
deliberations of the Committee during the period.
zz Review the structure, size, compensation and competencies
of the Board and make recommendations to the Board with
regard to any changes.
zz Recommend the requirements of new expertise and
succession arrangements for retiring Directors.
Mohan Pandithage
zz Recommend on any other matter referred to it by the Board
Chairman – Nomination Committee
of Directors.
16th May 2019
Colombo
Meetings of the Committee
During the reporting period, Nomination Committee meetings
were not held, whereas appointments were approved by the
Board via circular resolutions.
152 5 13 25 35
RELATED PARTY TRANSACTIONS REVIEW

COMMITTEE REPORT
Preamble Role and Responsibilities
The Board established the Related Party Transactions Review The mandate of the Committee is derived from the Code and
Committee (RPTRC) in terms of the Code of Best Practice the Rules and is as follows:
on Related Party Transactions issued by the Securities and zz To review in advance all proposed related party transactions
Exchange Commission of Sri Lanka (the “Code”) and Section of the Group either prior to the transaction being entered
9 of the Listing Rules of the Colombo Stock Exchange into or, if the transaction is expressed to be conditional on
(the “Rules”). such review, prior to the completion of the transaction.
zz Seek any information the Committee requires from
Composition of the Committee Management, employees or external parties with regard to
The Related Party Transactions Review Committee consists any transaction entered into with a related party.
of two Independent Non-Executive Directors, and one zz Obtain knowledge or expertise to assess all aspects of
Executive Director and is chaired by an Independent proposed related party transactions where necessary
Non-Executive Director. including obtaining appropriate professional and expert
advice from suitably qualified persons.
The following Directors serve on the Committee: zz To recommend, where necessary, to the Board and obtain
Mr. D. Sooriyaarachchi – their approval prior to the execution of any related party
Chairman Independent Non-Executive Director transaction.
Mr. D.K. de S. Wijeyeratne – Independent Non-Executive zz To monitor that all related party transactions of the entity
Director (Appointed w.e.f. 14th May 2018) are transacted on normal commercial terms and are not
prejudicial to the interests of the entity and its minority
Mr. M.H. Wijewardene – Executive Director – appointed w.e.f.
shareholders.
5th February 2019
Mr. G.J. Walker Non-Executive Director – Resigned zz Meet with the Management, Internal Auditors/External
29th November 2018 Auditors as necessary to carry out the assigned duties.
Mr. H.A. Pieris – Group CEO Executive Director – Resigned zz To review the transfer of resources, services or obligations
31st October 2018 between related parties regardless of whether a price is
charged.
Mr. J.A. Sethukavalar Independent Non-Executive Director zz To review the economic and commercial substance of both
of Singer Finance (Lanka) PLC – participating by invitation recurrent/non-recurrent related party transactions
represents Singer Finance (Lanka) PLC. zz To monitor and recommend the acquisition or disposal
of substantial assets between related parties, including
Brief profiles of the members are given on pages 18 to 21 of obtaining “competent independent advice” from
this Annual Report. independent professional experts with regard to the value of
the substantial assets of the related party transaction.
The above composition is in compliance with the provisions
of the Code regarding the composition of the Related Party
Policies and Procedures Adopted by the RPTRC for
Transactions Review Committee.
Reviewing Related Party Transactions (RPTs)
Hayleys Group Services (Pvt) Ltd. functions as the Secretary to 1. Relevant information to capture RPTs are fed into the
the Related Party Transactions Review Committee. Company Data Collection System.
2. All officers concerned are informed of the applicable
Meetings of the Committee regulatory requirements relating to the reporting of RPTs.
During the year ended 31st March 2019, the Committee 3. Key Management Personnel (KMPs) and their Close Family
met three times. Attendance by the Committee Members Members (CFMs) are identified half yearly together with
at these meetings is given in the table on page 147 of the their NIC numbers and business registration numbers. This
Annual Report. information is in the system.
161 271 153
REPORTS INFORMATION
Related Party Transactions Review Committee Report
4. Systems are updated with KMP and their CFM details on

a half yearly basis or as and when the need arises in the
event of a material change.
5. Data is extracted from the system, verified and validated.
6. All Managers are advised to report RPTs to the Finance
Director who has been identified as the Focal Point, for this
purpose.
7. Data is shared with the Finance Director and the Company
Secretaries to meet the regulatory requirements if required.
Task of the Committee

The Committee reviewed the related party transactions and
their compliance and communicated to the Board.
The Committee in its review process recognised the adequacy

of the content and quality of the information forwarded to
its members by the Management and in compliance with
Section 9 of the CSE Listing Rules.
Related Party Transactions are disclosed in the Note 39 to the

Financial Statements.
Reporting to the Board

The Minutes of the RPTRC meetings are tabled at Board
meetings enabling all Board members to have access to
same.
Appreciation
I appreciate the contribution made by Mr. G. J. Walker and Mr.
H. A. Pieris who served as members of the Committee and
resigned during the year.
I Wish to take this opportunity to thank all members who

served in the Committee and for their contribution to the
deliberations of the Committee during the period.
Deepal Sooriyaarachchi
Chairman – Related Party Transactions Review Committee
16th May 2019
Colombo
154 5 13 25 35
RISK MANAGEMENT
Protecting Ourselves
Risk is an integral part of any business. It is a matter of zz To optimise risk/return decisions by taking them as closely
identifying the sources of risk, their likelihood of occurrence as possible to the business, while establishing strong and
and impact, and then developing a comprehensive framework independent review and challenge structures.
to address them. Such a systematic approach also raises a zz To ensure that business growth plans are properly
few questions, like determining one’s appetite for risk and
supported by effective risk infrastructure.
establishing thresholds, bearing in mind that risk and return
go hand in hand. So it’s a question of striking a balance and zz To manage risk profile to ensure that specific financial
managing risk. deliverables remain possible under a range of adverse
business conditions.
Over the years, Singer has developed a set of clear risk zz To help executives improve the control and co-ordination of
management objectives and a well-established strategy to risk taking across the business.
deliver them, through core risk management processes.
The Company’s approach is to provide direction on
At a strategic level, our risk management objectives are – understanding the principal risks to achieving the Company
strategy; establishing risk appetite; and establishing and
zz To identify the Company’s significant risks.
communicating the risk management framework. The process
zz To formulate the Company’s risk appetite and ensure that is then broken down into five steps: identify, assess, control,
business profile and the plans are consistent with it. report, and manage/challenge.
The Company’s risk management strategy is broadly

unchanged from 2011.
The Risk Management Process

During the year under review, the Company continued to review and improve its risk management function in line with its risk
management objectives.
Steps Activities
Data Collection and Analysis zz The Management Information System (MIS) to pick-up relevant business-critical information.
zz Review and validation before it is submitted to Senior Management.
Assess zz Agree and implement measurement and reporting standards and methodologies.
Control zz Establish key control processes and practices, including limit structures, impairment allowance
criteria and reporting requirements.
zz Monitor the operation of the controls and adherence to risk direction and limits.
zz Provide early warning of control or appetite breaches.
zz Ensure that risk management practices and conditions are appropriate for the business
environment.
Report zz Interpret and report on risk exposures, concentrations and risk-taking outcomes.
zz Interpret and report on sensitivities and Key Risk Indicators.
zz Communicate with relevant parties.
Manage zz Review aspects of the Company’s risk profile.

zz Assess new risk-return opportunities.
zz Advise on optimising the Company’s risk profile.
zz Review and challenge risk management practices.
161 271 155
REPORTS INFORMATION
Risk Management
Internal, External and Corporate Audit

Internal, external and corporate audits are crucial in the risk The Group’s system of internal controls covers all policies
management process. Reports on the Group’s operational and procedures, enabling significant strategic and operational
and financial systems by these audits are reviewed and risks to be managed.
action taken to manage any risks that have been identified.
Significant audit findings by the Auditors are immediately The internal audit team meets with the Finance Department
reviewed by the Board-appointed Audit Committee. every month to share information and exchange perspectives.
Issues identified at these discussions as being a potential risk
are immediately subjected to a fuller investigation.
Risk Mitigation Activities
Macroeconomic Factors
Economic Environment
The Group’s business operations are sensitive to zz A diversified portfolio of products and brands with a wide range of offers
economic conditions and in particular to levels targeted at different consumer groups.
of consumer spending. Any delay in economic zz A Broad geographic spread.
recovery could affect consumer expenditure and
zz The Board and the Senior Management Team regularly review the impact of
therefore our revenue. There is an ongoing risk
the economic conditions on the Group’s budget and strategic plans.
to our business in terms of increases in the cost
of products due to rupee depreciation. zz Emphasise excellent quality, service, value for money and up-to-date
product offers, we aim to broaden our appeal to customers.
zz Renewal and transformation plan to improve our business performance
irrespective of macroeconomic factors strategy and business planning
which takes into account varying economic scenarios.
Market Specific Characteristics
Seasonality – A substantial proportion of revenue zz Financial planning takes into account expected peaks and troughs during
and operating profit is generated during the the year and the business is run accordingly.
fourth financial quarter, which includes the zz Increasing the proportion of internal promotion and various offers, which
Christmas and New Year season. Adverse gives a regular stream of income over the course of the year.
trading in this relatively short period is likely to
impact significantly the full year’s results.
Adverse Weather-Frequent floods, droughts zz Rescheduling of HP in affected areas.

and other extreme weather conditions affected zz Insurance scheme for HP customers.
consumers income levels and paying ability
zz Discount offer for repairs and replacement.
specially in agricultural area affect achieving
planed revenue and collections.
Price Deflation – Price deflation has been a zz Effective launches of new technologically evolved products as it becomes
common feature across most electrical goods available to the market.
categories for a number of years, primarily zz Growth of services-related business to increase the number and value of
driven by technological advances and improved non-product sales.
production efficiencies.
zz Improve gross profit in renovated showrooms.
zz Control of stock and strong management of clearance and exit routes.
156 5 13 25 35
Risk Management
Competition
Competitors reduce the Group’s market share zz Renovation and transformation plan is improving our showrooms, cost
and/or drive down margins in specific markets. structure and service across all channels.
zz Continuing development of strong international brands.
zz Ensuring our prices offer good value, including a customer price index.
zz Building stronger relationships with suppliers.
zz Expand and improve after-sales service network.
The e-commerce sites driven slowly by revenue zz Revamp the Company web site and increased promotional awareness
valuations are selling products well below the through the web site.
costs, thereby forcing all parties to reduce zz Make existing network to free delivery for web purchase.
the margins.
zz Set up pick-up store with additional discount for selected items.
zz Combine with deal sites.
zz Active engagement and promotion on social media.
Risk that we fail to capitalise on new technology zz Strong supplier relationships.
or emerging trends to maximise revenues and zz Delivery of Customer Plan to respond to identified changes in technology.
fail to meet the expectations of customers.
zz Showroom renovation to take into account emerging trends in showroom
layouts.
zz Exciting product launches to make our showrooms the destination for the
latest technology.
zz Continued focus on ensuring an excellent range across all price points.
zz Customer service training for sales staff and product workshops to improve
product knowledge.
zz A loyalty programme that encourages customers to stay with the Singer
Brand and its products.
Product Risk
Products could turn out to be defective or zz The Company’s plant and machinery are rigorously maintained and
inappropriate for the market in terms of price, upgraded whenever necessary.
functionality or perceived value. They are zz Established quality control measures as well as product testing through
also liable to be rendered obsolete. In such sampling are performed on all product lines.
instances, the Company is exposed to market
zz The in-house Quality Surveillance Unit tests samples of new products or
risks arising from consumer dissatisfaction and
components from external suppliers before order placement.
consequent rejection of its products.
Operational Risk
People
A failure to attract, retain, develop and motivate zz Company endeavours to recruit the best people with the right skills at all
the best employees across all our showrooms times.
and head office may impact our ability to deliver zz Offer training and development programmes to ensure that we retain them.
our operational and strategic objectives. Labour
zz Remuneration packages are benchmarked to ensure that they remain
issues can affect product quality, output, market
competitive, including incentive arrangements where appropriate.
share as well as the Company goodwill and
reputation. zz Collective agreements are in place with the labour unions to maintain an
equitable balance between the interests of employer and employee and
provide a basis for negotiations when issues arise.
zz Procedures have also been laid down in responding to grievances and staff
complaints.
161 271 157
REPORTS INFORMATION
Risk Management
As the business grows in size and geographical zz Clear behavioural guidance given to employees through operational
scope, the potential for fraud and dishonest manuals.
activity by our suppliers, customers and zz Appropriate procedures and controls set out and audited across the
employees increase. business to reduce fraud risks; Internal Audit and Corporate Audit undertake
detailed investigations into all business areas and report their findings to the
Audit Committee.
zz Regular update and new introduction of relevant policies and procedures.
zz Whistle-blower Policy.
zz Periodical review of the internal controls by outsourced consultants.
IT Systems and Infrastructure

Any significant failure in the IT processes of our zz The Company has installed comprehensive network security.
retail operations would impact our ability to trade. zz Regular backups of all databases and mission-critical information.
zz Off-site disaster-recovery system.
zz Regular follow-up reviews are conducted on recommendations given by
external IT risk assessment team.
zz Investment in IT system improvements and innovating to improve business
efficiency.
zz Extensive controls and reviews to maintain integrity and efficiency of IT
infrastructure and data.
Supply Chain
Timely distribution of products to our retail zz Regular review of distribution plan.
outlets is crucial. We work with a number of zz Monthly operational meetings to review the forecast, level of inventory and
key overseas and local suppliers our business, procurement requirement etc.
could be at risk of both interruption of supply
zz Long-standing relationships with many suppliers help to minimise risks in
and of failure of such key suppliers and service
this area.
providers.
zz Reduce dependability on a single service provider.
Asset Risk
Risks associated with the physical assets of the zz All such assets are insured against all identifiable risks.
Company include the destruction, loss or theft zz The relevant insurance policies are subject to a comprehensive annual
as well as technical and other defects. review, with modifications made as deemed necessary.
zz 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 (ISO 9001) quality
assurance at all manufacturing facilities, distribution centres and service
centres; and the maintenance of adequate spare parts.
zz Provisioning is also made against obsolete inventory, warranty claims and
doubtful debtors. Warranty costs are shared with the Company’s partners.
The extended warranty cost is comprehensively covered by a well-reputed
insurance company.
158 5 13 25 35
Risk Management
Financial Risk
Liquidity Risk
Inadequate liquidity can have an adverse zz The liquidity position of the Company is regularly reviewed and reported to
impact on ongoing operations, marketing and the Board.
investment in new products and brands. zz Projected net borrowings are covered by committed banking facilities and a
healthy industry-related gearing ratio is maintained.
zz The Company’s good relationships and facilities with many banks and other
sources of finance ensure reliable access to funds.
Interest Rate Risk

Increase in interest rates will have an adverse zz Fluctuating interest rates are minimised by striking a balance between short
impact to the profitability. and long-term borrowings.
zz Floating-rate debentures are sometimes issued to capitalise on existing
interest rates.
zz The Company’s strong brand strength and financial dependability help
ensure ready access to funds at attractive rates.
Credit Risk
The Company is exposed to credit risk in the zz Branch Managers act as del credere agents.
form of financial loss when a customer reneges zz Management undertakes a thorough appraisal of the client before credit is
on a hire purchase agreement. Such exposure extended.
cannot be avoided entirely since consumer
zz Credit appraisals of dealers are undertaken to ascertain whether they have
credit is an integral part of the Company’s retail
the capacity to pay for goods ordered; in doubtful cases, a bank guarantee
operations and is used to encourage and enable
or security deposit is requested.
consumers to purchase.
zz Details of customers and dealers who have defaulted on payments
are recorded in a database, accessible to those staff whose duty is to
undertake credit evaluations of customers and dealers.
zz Risk-adjusted pricing.
zz A fully-equipped and trained Credit Supervision team is available.
Investment Risk
While investment in new products and zz Appraisals are carried out before an investment is made.
geographical expansion is vital for the Company zz A due diligence study ensures that projected budgets and forecasts can
to remain competitive, it raises fresh risks. be met and examines the impact of technological and other factors on the
investment decision.
zz Post-investment analysis and performance tracking is in place including
financial and customer measures through balance scorecard.
161 271 159
REPORTS INFORMATION
Risk Management
Other Risk
Governance Risk
These are risks to the Company arising from zz Preventive action has been designed by the Company’s Legal Department.
non-compliance with relevant health, safety and zz Frequent internal, external and corporate audits-monitor compliance.
environmental statutes and leading to loss of
zz The Company’s Management culture stresses ethical performance in this
reputation and goodwill, possible litigation and
area. International best practices are followed wherever possible.
financial loss.
zz Quality surveillance helps protect the Company against litigation and
warranty claims. Provisioning ensures that such claims do not have an
adverse impact on operational and other aspects of the Company.
zz Detailed, established procedures to ensure product integrity.
zz Group Compliance Officer reviews reports forwarded to the Audit Committee
to ensure compliance with laws and policies.
Socio-economic Risks
Sri Lanka’s socio-economic and political zz Management reviews prices in comparison to inflation and negotiates with
environment has an impact on the consumer suppliers for lower prices and credit terms.
durables business as well as the investment
climate.
Environment and Climate Change

Aside from the general risks to humankind zz The use of alternative materials mitigates this risk while simultaneously
posed by climate change, a specific business opening up new marketing opportunities.
risk to which the Company is exposed concerns zz Collaborate with Central Environmental Authority to assist in e-waste project.
possible shortages of essential raw materials,
zz All factories, warehouse and service centres complied with the requirement
such as wood for the manufacture of furniture
of environment regulations.
and risks of environment pollution due to waste
material. zz Introduction of energy saving appliances.
Caveat
Although the key sources of risk and their zz The Company is confident that all material risk factors have been adequately
mitigation have been discussed in this assessed and managed to ensure the uninterrupted and profitable
document, no assurance can be given that the continuance of the business.
Company is fully-protected against all possible
risks. As noted in the opening paragraph,
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.
160 5 13 25 35
101 161 271 161
REPORTS INFORMATION
FINANCIAL
REPORTS
162
FINANCIAL CALENDAR
163 170 171 176

ANNUAL REPORT OF THE BOARD OF STATEMENT OF INDEPENDENT STATEMENT OF PROFIT
DIRECTORS ON THE AFFAIRS OF DIRECTORS’ AUDITORS’ OR LOSS AND OTHER
THE COMPANY RESPONSIBILITY REPORT COMPREHENSIVE INCOME
177 178 181 183

STATEMENT OF FINANCIAL STATEMENT OF STATEMENT OF NOTES TO THE
POSITION CHANGES IN EQUITY CASH FLOWS FINANCIAL STATEMENTS
162 5 13 25 35
ANNUAL REPORT 2018/19 Financial Reports
FINANCIAL CALENDAR
Financial Calendar – 2018/19
Annual Report 2017/18 Approved 14th May 2018

Forty Third Annual General Meeting 26th June 2018
Interim Financial Statements in Terms of Rule 7.4 of the Colombo Stock Exchange Released to CSE
For the three months ended 30th June 2018 (Unaudited) 8th August 2018
For the six months ended 30th September 2018 (Unaudited) 12th November 2018
For the nine months ended 31st December 2018 (Unaudited) 8th February 2019
For the twelve months ended 31st March 2019 (Unaudited) 16th May 2019
Annual Report and Annual General Meeting

Annual Report 2018/19 Approved 16th May 2019
Forty Fourth Annual General Meeting 25th June 2019
101 271 163
STEWARDSHIP SUPPLEMENTARY
INFORMATION
ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE AFFAIRS OF

THE COMPANY
The Board of Directors of Singer (Sri Lanka) PLC has The Financial Statements duly signed by the Directors are
pleasure in presenting their Report on the Affairs of the provided on pages 176 to 270 in this Annual Report.
Company together with the Audited Financial Statements
of Singer (Sri Lanka) PLC and the Audited Consolidated
Accounting Policies
Financial Statements of the Group for the 12 months ended
31st March 2019. The accounting policies adopted in preparation of the
Financial Statements are provided in detail in the Notes to
the Financial Statements on pages 183 to 209 The Company/
Review of the Year Group has consistently applied the accounting policies as set
Chairman’s Message, (pages 14 to 15), the Group Chief out in Note 2 to all periods presented in these Consolidated
Executive Officer’s Review, (pages16 to 17) and Management Financial Statements.
Discussion and Analysis (pages 35 to 99), describe the
Company’s affairs and the Group’s business and mention
Property, Plant and Equipment
important events that occurred during the year and up to the
date of this Report. Financial results of the Company/Group During the period under review, the Company and the
are elaborated on pages 35 to 42 These reports together with Group invested a sum of Rs. 459,376,293/- (2017/18 –
the Audited Financial Statements reflect the state of affairs of Rs. 600,451,154/-) and Rs. 733,580,136/- (2017/18 –
the Company/Group. Rs. 887,107,521/-) in property, plant and equipment.
Details of Property, Plant and Equipment and Intangible Assets

Principal Activities and their movements are given in Notes 11 and 12 to the
The Company is engaged in Retail and Wholesale Marketing, Financial Statements respectively. Details of freehold land and
Financing, Assembling and Manufacturing and in Financial buildings are given in Note 11.7 to the Financial Statements.
Services. The Company markets Consumer Electronics, Home
Appliances, Mobile and smart Phones, Personal Computers,
Market Value of Properties
Laptops, Furniture, Domestic and Industrial Sewing Machines,
Agriculture Equipment, and provides Financing through Hire The freehold property of the Company/Group is revalued by
Purchase. In addition, the Company manufactures and sells an Independent Qualified Valuer when there is a substantial
Furniture, Water Pumps and assembles and sells Motor Cycles difference between the fair value and the carrying amount of
and Two Wheel Tractors. The Company also acts as a Bill the freehold property. Company/Group reviews its assets once
Collection Agent for banks, Mobile service providers, National in each reporting date.
Water Supply and Drainage Board, Ceylon Electricity Board
and is also a sub agent for Western Union. The most recent valuation was carried out as at 31st March
2019. The details of the valuation are given in Note 11.6 to the
Financial Statements on page 219. in this Annual Report.
Independent Auditors’ Report
The Independent Auditors’ Report on the Financial Statements
Directors’ Responsibilities
is given on pages 171 to 175 in this Annual Report.
The Statement of the Directors’ Responsibilities is given
on page 170.
Financial Statements
The Financial Statements for the twelve months ended 31st
March 2019 are in accordance with the Sri Lanka Accounting
Standards, SLFRSs/LKASs, issued by The Institute of Chartered The Company has complied with Corporate Governance
Accountants of Sri Lanka and the requirements of Section 151 rules laid down by The Institute of Chartered Accountants of
(and Section 153 for consolidated entity) of the Companies Sri Lanka, and listing rules of the Colombo Stock Exchange
Act No. 07 of 2007. The Corporate Governance Section on pages 102 to 147
describes the good Corporate Governance Principles adopted
by the Company.
164 5 13 25 35
ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE AFFAIRS OF THE COMPANY
Profit and Appropriations

For Twelve Months Ended For Fifteen Months Ended
31st March 2019 31st March 2018
Rs. Rs.
Group Profit Before Tax for the Twelve Months Ended 31st March after Deducting all
Expenses, Providing for Known Liabilities and Depreciation Amounts to 672,129,112 2,049,052,146
From this has to be deducted the Income Tax Expenses (286,148,528) (828,757,533)
Non-controlling Interest (207,123,452) (111,429,890)
Making a Profit for the Period 178,857,132 1,108,864,723
Total Other Comprehensive Income/(Loss) (15,510,222) (11,626,151)
Total Other Comprehensive Income/(Loss) – Non-controlling Interest 71,263,960 (65,182,518)
To this has to be added a Balance Brought Forward from the Previous Year 2,795,477,725 2,600,892,894
Interim Dividend for the Period – Gross – Rs.0.65 per Share
(2017/18 – Rs. 2.20 per share) (244,158,740) (826,383,426)
Adjustment on WHT on dividend paid in terms of Bonus Issue (8,788,026) –
Adjustment due to Realisation on Revaluation Surplus 24,389,920 28,213,846
Adjustment due to changes in ownership interest in subsidiaries (9,940,099) 1,347,099
Adjustment on error correction in prior year 43,358,242 –
Adjustment of initial application of SLFRS 9 and SLFRS 15, Net of Tax (472,032,585) –
Leaving a Total Available for Appropriation 2,362,917,307 2,836,126,468
Transfer to Reserve Fund (27,086,695) (40,648,742)
Final Dividend Approved 2018/19 – Nil (2017/18 – Nil) – –
Making a total Appropriation of (27,086,695) (40,648,742)
Leaving a balance on Group Basis to be Carried Forward of 2,335,830,612 2,795,477,725
The Balance to be Carried Forward on Company Only Basis will be 151,601,145 626,088,413
Dividends Commitments and Contingencies

In terms of Article 7 of the Articles of Association of the Commitments and Contingent Liabilities of the Group are
Company, an interim dividend of Rs.0.65 per share was paid disclosed in the Note 37 to the Financial Statements.
on 18th April 2019 for the twelve months financial period
ended 31st March 2019. The Board signed a Certificate
Events after the Reporting Period
of Solvency stating that the Company would satisfy the
Solvency Test immediately after the said distribution is made No circumstances have arisen since the reporting date, which
in accordance with Section 57 of the Companies Act No. would require adjustment or disclosure except for the details
07 of 2007. The Board of Directors obtained a Certificate of given in Note 38 to the Financial Statements on page 267.
Solvency from the Auditors prior to the date of dispatch of the
dividend payment. Statutory Payments
The declaration relating to statutory payments is made in the
Reserves (Excluding Non-controlling Interest) Statement of Directors’ Responsibility on page 170.
Group reserves and retained equity as at 31st March 2019
amounted to Rs. 6,317 million vs Rs. 6,209 million as at 31st Board Committees
March 2018. The break-up and movement are shown in the
Audit Committee
Statement of Changes in Equity in the Financial Statements.
Following are the names of the Directors comprising the Audit
Committee of the Board:
Stated Capital
Mr. D.K. de S. Wijeyeratne –
As per the terms of the Companies Act No. 07 of 2007, the
Chairman (Appointed w.e.f. 1st April 2018)
Stated Capital of the Company was Rs. 626,048,050/- as
at 31st March 2019 and was unchanged during the twelve Mr. D. Sooriyaarachchi
months period. Details are given in Note 21 to the Financial Mr. M.H. Jamaldeen
Statements on page 237.
101 271 165
INFORMATION
The Report of the Audit Committee on pages 148 to 149 sets Directors’ Indemnity and Insurance
out the manner of compliance by the Company in accordance The Directors and Officers of the Company and subsidiaries
with the requirements of the Rule 7.10 of the Listing Rules of are covered in respect of Directors’ and Officers’ liability by
the Colombo Stock Exchange on Corporate Governance. the Insurance Policy obtained by the Company, as per the
provisions in Article 44.
Remuneration Committee
Following are the names of the Directors comprising the
Issue of Listed Debentures
Remuneration Committee of the Board:
The Company has issued 12% three year debentures of
Mr. M.H. Jamaldeen – Chairman Rs. 656.8 million at fixed rate during the year.
Mr. D. Sooriyaarachchi
Mr. D.K. de S. Wijeyeratne(Appointed w.e.f. 14th May 2018) Share Information and Substantial Shareholdings
Mr. A.M Pandithage – Observer The distribution of shareholdings, public holding percentage,
market value of shares, twenty largest shareholders and
The Report of the Remuneration Committee on page 150 record of scrip issues are given on pages 275 to 279.
contains a statement of the remuneration policy. The details
of the aggregate remuneration paid to the Executive and Earnings per share, dividends per share, dividend pay out and
Non-Executive Directors during the period under review are net assets value per share are given in the Financial Highlights
given in Note 8 to the Financial Statements on page 214. on page 10 of this Annual Report.
Board Nomination Committee

Directorate and Shareholding
Following are the names of the Directors comprising the
Nomination Committee of the Board: The names of the Directors of the Company as at 31st March
2019 and their brief profiles are shown on pages 18 to 21 and
Mr. A.M. Pandithage – Chairman the Inner Back Cover.
Mr. K.D.D. Perera
Mr. H.A. Pieris (Resigned w.e.f. 31st October 2018) Mr. M.H. Wijewardene was appointed as the Chief Executive
Officer of Singer (Sri Lanka) PLC on 1st November 2018.
Mr. M.H. Jamaldeen
Mr. D.K. de S. Wijeyeratne was appointed as an Independent
The Report of the Board Nomination Committee on page
Non-Executive Director with effect from 1st April 2018.
151 sets out the manner of compliance by the Company
in accordance with the requirements of the Code of Best
Ms. O.D. Gunewardene was appointed as an Independent
Practice on Corporate Governance issued by The Institute
Non-Executive Director with effect from 1st August 2018.
of Chartered Accountants of Sri Lanka.
Mr. L.N.S.K. Samarasinghe was appointed as the Alternate
Related Party Transactions Review Committee Director to Mr. M.H. Jamaldeen and Mr. H.P.S. Perera was
Following are the names of the Directors comprising the Board appointed as the Alternate to M.H. Wijewardene with effect
Related Party Transactions Review Committee: from 22nd January 2019.
Mr. D. Sooriyaarachchi – Chairman,
Mr. H.A. Pieris resigned from the Board with effect from
Mr. D.K. de S. Wijeyeratne – Appointed w.e.f. 14th May 2018, 31st October 2018 and Mr. L.N.S.K. Samarasinghe the
Mr. M.H. Wijewardene – Appointed w.e.f. 6th February 2019 Alternate Director to Mr. H.A. Pieris ceased to be on the
Mr. H.A. Pieris – Resigned 31st October 2018, Board with effect from 31st October 2018.
Mr. G.J. Walker – Resigned 29th November 2018,
Mr. G.J. Walker resigned from the Board with effect from
By Invitation – 29th November 2018.
Mr. J.A. Sethukavalar – Director of Singer Finance (Lanka) PLC
participating on invitation to represent Singer Finance (Lanka) PLC. Mr. S.H. Goodman being over 70 years of age was appointed
as a Director at the last Annual General Meeting held on
The Board of Directors formed the Related Party Transactions 26th June 2018 for a period of one year in terms of Section
Review Committee to assist the Board in reviewing all related 211 of the Companies Act No. 07 of 2007. Mr. Goodman
party transactions in accordance with the requirements of has intimated that he does not wish to present himself for
Section 9 of the Listing Rules of the Colombo Stock Exchange. reappointment in terms of Section 211 of the Companies Act
No. 07 of 2007 at the forthcoming Annual General Meeting and
The Report of the Board-Related Party Transactions Review would thus cease to be a Director on conclusion of the Annual
Committee on pages 152 to 153 sets out the manner of General Meeting on 25th June 2019.
compliance by the Company.
166 5 13 25 35
Mr. M.H. Wijewardene and Ms. O.D. Gunawardena being Messrs A.M. Pandithage, K.D.D. Perera, S.C. Ganegoda and
Directors appointed to the Board during the Financial year M.H. Jamladeen were common Directors of Hayleys PLC and
being eligible would present themselves for re-election at the Singer (Sri Lanka) PLC.
forthcoming Annual General Meeting in terms of Article 24 (10)
of the Articles of Association of the Company. Singer Industries PLC
Mr. V.G.K. Vidyaratne acquired 16 shares and Mr. K.D.
In terms of Article 24 (4) of the Article of Association of the
Kospelawatta acquired 320 shares as a result of capitalisation
Company, Mr. D. Sooriyaarachchi retires by rotation and being
of reserves made on 11th September 2018 in the ratio of 8:5
eligible offer himself for re-election and the shareholders
Ordinary Shares held as at 11th September 2018.
will be requested to re-elect him at the forthcoming Annual
General Meeting.
Singer (Sri Lanka) PLC
Directors’ Interests and Interest Register Shareholding

31st March 2019
Details of transactions with Director related entities are Number of Shares
disclosed in Note 39. to the Financial Statements on pages
267 to 269 and have been declared at the Board meetings, Mr. A.M. Pandithage –
pursuant to Section 192 (2) of the Companies Act No. 07 of Mr. K.D.D. Perera 6,935,913
2007.
Mr. D. Sooriyaarachchi –
Mr. D.H. Fernando –
Directors’ Remuneration
Executive Directors remuneration is structured within an Mr. M.H. Jamaldeen –
established framework by the Board’s Remuneration Mr. M.H. Wijewardene (CEO) –
Committee to whom this task has been entrusted. The Appointed w.e.f. 1st November 2018 –
Directors are of the opinion that the framework assures
Mr. S.C. Ganegoda –
appropriateness of remuneration and fairness for the
Company. The total remuneration of the Executive Directors Mr. S.H. Goodman –
for the reporting period ended 31st March 2019 is given on Appointed w.e.f 26th June 2018 –
Note 8 and 39.3 includes the value of perquisites granted to Ms. D.K. De S. Wijeyeratne –
them as part of their terms of service. Appointed w.e.f 1st April 2018 –
The total Directors fees of Non-Executive Directors for the Mr. O.D. Gunewardene –
reporting period ended 31st March 2019 is given in Note 8 Appointed w.e.f 1st August 2018 –
is determined according to the scales of payment decided Mr. K.K.L.P. Yatiwella
upon by the Board. The Board is satisfied that the payment (Alternate to Mr. S.C. Ganegoda) –
of remuneration is fair to the Company.
Mr. L.N.S.K. Samarasignhe
(Alternate to Mr. M.H. Jamaldeen) –
Directors’ Interest in Shares Appointed 22nd January 2019 17,372
The following transactions of shares of the Directors/Alternate Mr. H.P.S. Perera (Alternate
Directors of the respective companies were reported during to Mr. M.H. Wijewardene) –
the reporting period. Appointed w.e.f 22nd January 2019 –
Mr. G.J. Walker –
Resigned w.e.f 29th November 2018 –
On the 15th of October 2018, Hayleys PLC purchased the
Mr. M.H. Wijewardene
balance 35,562,883 (9.47%) ordinary shares held by Retail
(Alternate to Mr. G.J. Walker) –
Holdings (Sri Lanka) BV in Singer (Sri Lanka) PLC at a price
Ceased to be Alternate Director w.e.f.
of Rs. 47.00 per share upon Retail Holdings (Sri Lanka) BV
29th November 2018 –
exercising their option to sell its shares to Hayleys PLC as
previously agreed at the time of the Mandatory Offer made in Mr. H.A. Pieris –
2017. After accepting this offer, Hayleys PLC together with its Resigned w.e.f. 31st October 2018 6,000
Group Companies holds 90.43% of Singer (Sri Lanka) PLC.
Mr. L.N.S.K. Samarasignhe
(Alternate to Mr. H.A. Pieris) –
Messrs. S.H. Goodman and G.J. Walker were representatives
Ceased to be Alternate Director
of Retail Holdings (Sri Lanka) BV.
w.e.f 31st October 2018 17,372
101 271 167
INFORMATION
Subsidiaries
Shareholding of Singer Shareholding of Singer Shareholding of
Finance (Lanka) PLC Industries (Ceylon) PLC Regnis (Lanka) PLC
31st March 2019 31st March 2019 31st March 2019
Number of Shares Number of Shares Number of Shares
Common Directors of the Singer Group Companies

Mr. A.M. Pandithage – – –
Mr. K.D.D. Perera – – –
Mr. M.H. Wijewardene (CEO Singer Group) – – –
Mr. H.A. Pieris (Resigned) 102,335 – 1,000
Mr. D. Sooriyaarachchi – –
Mr. M.H. Jamaldeen – – –
Mr. D.H. Fernando – – –
Mr. D.K. de S. Wijeyeratne – – –
Ms. O.D. Gunewardene – – –
Mr. G.J. Walker (Resigned) – – –
Mr. S.C. Ganegoda – – –
Mr. S.H. Goodman – – –
Mr. L.N.S.K. Samarasinghe (Alternate) 325,000 10,670 14,000
Mr. H.P.S. Perera (Alternate) 79,008
Mr. K.K.L.P. Yatiwella (Alternate) – – –
Directors of Singer Finance (Lanka) PLC
Mr. M.Y.A. Perera – – –
Mr. J.A. Setukavalar – – –
Mr. M.P.A. Salgado 12,224 – –
Mr. T.A. Amarasuriya (CEO) 50,155 – –
Mr. R.S. Wijeweera (Retired) 37,892 – –
Mr. J.M.J. Perera – – 800
Ms. D.G. Talpahewa – – –
Mr. L.S.S. Perera – – –
Mr. C.A. Samararasinghe (Alternate) (Resigned) – – –
Mr. S. Ramanathan (Alternate) (Resigned) – 17329 35,102
Directors of Singer Industries (Ceylon) PLC/
Regnis (Lanka) PLC
Mr. V.G.K. Vidyaratne 250,555 260 60,155
Mr. K.D.G. Gunaratne – – –
Mr. N.L.S. Joseph – – –
Mr. K. Kospelawatte – 520
Mr. A.C.M. Irzan (Alternate) – – –
168 5 13 25 35
Debentures Regnis (Lanka) PLC

There were no debentures held by Directors of the Company. Mr. A.M. Pandithage – Chairman
Mr. M.H. Wijewardene – Group CEO
Independence of Directors Mr. D.K. de S. Wijeyeratne
Mr. D. Sooriyaarachchi Mr. V.G.K. Vidyarathne
Mr. M.H. Jamaldeen Mr. M.H. Jamaldeen
Mr. D.H. Fernando Mr. K.D.G. Gunaratne
Mr. D.K. de S. Wijeyeratne Mr. N.L.S. Joseph
Ms. O.D. Gunewardene Mr. S.C. Ganegoda
Mr. K.D. Kospelawatta
In accordance with Rule 7.10.2 (b) of the Colombo Stock Mr. A.C.M. Irzan (Alternate to Mr K.D. Kospelawatta)
Exchange (CSE) Listing Rules, Independent Directors
have submitted a signed and dated declaration as per the
Reality Lanka Limited
specimen given in Appendix 7A of continuing Listing Rules
of CSE. Mr. A.M. Pandithage
Although, Mr. M.H. Jamaldeen serves on the Board of Mr. S.C. Ganegoda
Hayleys PLC, the Parent Company, the Board of Directors
of the Company has determined that Mr. M.H. Jamaldeen
Singer Digital Media (Pvt) Limited
nevertheless be independent as the objectivity of his role is
not compromised by being on both Boards: Mr. A.M. Pandithage – Chairman
Mr. M.H. Wijewardena
Subsidiaries Mr. K.K.L.P. Yatiwella
The names of the Directors holding office at the end of the Mr. S.C. Ganegoda
reporting period ended 31st March 2019 in respect of the Mr. K.D.J.M. Perera
subsidiaries are given below:
Singer Business School (Pvt) Limited
Mr. A.M. Pandithage – Chairman
Mr. M.Y.A. Perera – Chairman
Mr. M.H. Wijewardena
Mr. J.A. Setukavalar
Mr. K.K.L.P. Yatiwella
Mr. M.P.A. Salgado
Mr. S.C. Ganegoda
Mr. T.A. Amarasuriya (CEO)
Mr. J.M.J. Perera
Regnis Appliances (Pvt) Limited
Ms. D.G. Talpahewa
Mr. L.S.S. Perera
Mr. K.K.L.P. Yatiwella (Alternate to Ms. D.G. Talpahewa)
Mr. S.C. Ganegoda
Mr. N.M.P. Fernando
Singer Industries (Ceylon) PLC
Domus Lanka (Pvt) Limited
Mr. D.K. de S. Wijeyeratne
Mr. M.H. Wijewardene – Group CEO
Mr. V.G.K. Vidyarathne
Mr. M.H. Jamaldeen
Employment
Mr. N.L.S. Joseph
The number of persons employed by the Group and the
Mr. K.D.G. Gunaratne Company as at 31st March 2019 was 2,798 (2017/18– 2,617)
Mr. S.C. Ganegoda and 1,827 (2017/18 – 1,781), respectively.
101 271 169
INFORMATION
Details of human resource initiatives are given in the The audit and non-audit fees paid to the Auditors by the
Employees section of the Sustainability Report. Company and Group are disclosed in Note 8 on page 214.
in this Annual Report.
Corporate Governance Directors’ Declarations
As far as the Directors are aware, the Auditors do not have any
The Directors declare that having considered all information relationship or interest in the Company or its subsidiaries. The
and explanations made available to them that – Auditors have confirmed that they do not have any relationship
(a) the Company complied with all applicable laws and (other than that of Auditors) with or interest in the Company or
regulations in conducting its business; any of its subsidiaries other than those disclosed above.
(b) they have declared all material interests in contracts
involving the Company and refrained from voting on Notice of Meeting
matters in which they were materially interested; The Forty-Fourth Annual General Meeting will be held at
(c) the Company has made all endeavours to ensure the Hayleys PLC, No. 400, Deans Road, Colombo 10, Sri Lanka
equitable treatment of shareholders; on Tuesday 25th of June 2019 at 3.00 p.m.
(d) the business is a going concern with supporting
assumptions or qualifications as necessary: and The Notice of the Annual General Meeting to the shareholders
is given on page 294.
(e) they have conducted a review of internal controls covering
financial, operational and compliance controls and risk
For and on behalf of the Board,
management and have obtained a reasonable assurance
of their effectiveness and successful adherence herewith.
The Corporate Governance Report is given under the

governance section of this Annual Report.
Mohan Pandithage
Donations (For Approved and Non-Approved Chairman
Charities/Organisations)
During the year, donations amounting to Rs. 466,250/-
(2017/18 – Rs. 763,465/-) were made by the Group and
donations made by the Company were Rs. 360,000/-
(2017/18 – Rs. 335,220/-). Donations made by the Group and
M.H. Wijewardene
Company are given in Note 8.
Director/Chief Executive Officer
Auditors
The Financial Statements for the period under review were
audited by Messrs KPMG, Chartered Accountants who
offer themselves for reappointment for the ensuing year. Hayleys Group Services (Pvt) Ltd
The Directors propose the reappointment of Messrs KPMG, Company Secretaries
Chartered Accountants as Auditors of the Company for the Singer (Sri Lanka) PLC
year 2019/20 subject to the approval of the shareholders at
the Annual General Meeting. Colombo
16th May 2019
The Audit Committee reviews the appointment of the Auditor,
its effectiveness and its relationship with the Company
including the level of audit and non-audit fees paid to the
Auditors. Details on the work of the Audit Committee are set
out in the Audit Committee Report.
170 5 13 25 35
STATEMENT OF DIRECTORS’ RESPONSIBILITY

The Directors are responsible under sections 150 (1), 151, The External Auditors, Messrs KPMG, Chartered Accountants
152 (1), and 153 of the Companies Act No. 07 of 2007, who will be proposed to be reappointed as the Auditors of
to ensure compliance with the requirements set out therein the Company at the Annual General Meeting were provided
and to prepare Financial Statements for the twelve months with every opportunity to undertake the inspections they
financial period ended 31st March 2019 giving a true and fair considered appropriate to enable them to form their opinion
view of the state of affairs of the Company and the Group on the Financial Statements. The report of the Auditors, shown
and of the profit of the Company and the Group for the said on pages 171 to 175 sets out their responsibilities in relation
financial period. to the Financial Statements. The Board has recommended
that Messrs KPMG be reappointed as Auditors for the year
The Directors are also responsible, under Section 148, for 2019/2020.
ensuring that proper accounting records are kept to enable,
determination of financial position with reasonable accuracy,
Compliance Report
preparation of Financial Statements and audit of such
statements to be carried out readily and properly. The Directors confirm that to the best of their knowledge,
all statutory payments relating to employees and the
The Board accepts responsibility for the integrity and Government that were due in respect of the Company
objectivity of the Financial Statements presented. The and its subsidiaries as at the balance sheet date have
Directors confirm that in preparing the Financial Statements, been paid or where relevant, provided for.
appropriate accounting policies have been selected and
applied consistently while reasonable and prudent judgements By Order of the Board,
have been made so that the form and substance of
transactions are properly reflected.
The Directors confirm that the Financial Statements have been

prepared and presented in accordance with the Sri Lanka Hayleys Group Services (Pvt) Ltd.
Accounting Standards (SLFRSs/LKASs), Companies Act Company Secretaries
No. 07 of 2007 and the Listing Rules of the Colombo Stock Singer (Sri Lanka) PLC
Exchange. Further, the Financial Statements provide the Colombo
information required by the Companies Act and the Listing
Rules of the Colombo Stock Exchange. 16th May 2019
The Directors are of the opinion, based on their knowledge

of the Company, key operations and specific inquiries, that
adequate resources exist to support the Company and the
Group on a going concern basis over the next year. These
Financial Statements have been prepared on that basis.
The Directors have taken reasonable measures to safeguard

the assets of the Company and the Group and, in that context,
have instituted appropriate systems of internal control with a
view to preventing and detecting fraud and other irregularities.
The Board of Directors declared an interim Dividend for the

twelve month period ended 31st March 2019 and paid on
18th April 2019 in terms of the Articles of Association of the
Company and in line with Section 56 of the Companies Act
No. 07 of 2007. The Solvency Test was satisfied immediately
after such distribution in accordance with Section 57 of
the Act.
171

INDEPENDENT AUDITOR’S REPORT
KPMG Tel : +94 - 11 542 6426

(Chartered Accountants) Fax : +94 - 11 244 5872
32A, Sir Mohamed Macan Markar Mawatha, : +94 - 11 244 6058
P. O. Box 186, Internet : www.kpmg.com/lk
Colombo 00300, Sri Lanka.
To the Shareholders of Singer (Sri Lanka) PLC

Report on the Audit of the Financial Statements
Opinion Basis for Opinion
We have audited the financial statements of Singer (Sri Lanka) We conducted our audit in accordance with Sri Lanka
PLC (“the Company”) and the consolidated financial Auditing Standards (SLAuSs). Our responsibilities under
statements of the Company and its subsidiaries (“the Group”), those standards are further described in the Auditor’s
which comprise the statement of financial position as at 31st Responsibilities for the Audit of the Financial Statements
March 2019, and the statement of profit or loss and other section of our report. We are independent of the Group in
comprehensive income, statement of changes in equity and accordance with the Code of Ethics issued by CA Sri Lanka
statement of cash flows for the year then ended, and Notes (Code of Ethics), and we have fulfilled our other ethical
to the financial statements, including a summary of significant responsibilities in accordance with the Code of Ethics. We
accounting policies and other explanatory Notes set out on believe that the audit evidence we have obtained is sufficient
pages from 176 to 270. and appropriate to provide a basis for our opinion.
In our opinion, the accompanying financial statements of Key Audit Matters

the Company and the Group give a true and fair view of the Key audit matters are those matters that, in our professional
financial position of the Company and the Group as at 31st judgement, were of most significance in our audit of the
March 2019, and of their financial performance and cash Company financial statements and the consolidated financial
flows for the year then ended in accordance with Sri Lanka statements of the current period. These matters were
Accounting Standards. addressed in the context of our audit of the Company financial
statements and the consolidated financial statements as a
whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
M.R . Mihular F C A P.Y.S. Perera FCA C.P. Jayatilake FCA

T.J.S. Rajakarier FCA W.W.J.C. Perera FCA Ms. S. Joseph FCA
Ms. S.M.B. Jayasekara ACA W.K.D.C Abeyrathne FCA S.T.D.L. Perera FCA
G.A.U. Karunaratne FCA R.M.D.B. Rajapakse FCA Ms. B.K.D.T.N. Rodrigo FCA
R.H. Rajan FCA M.N.M. Shameel ACA Ms. C.T.K.N. Perera ACA
Principals - S.R.I. Perera FCMA(UK), LLB, Attorney-at-Law, H.S. Goonewardene ACA
172

Risk Description Our response
01. Adoption of and Transition to SLFRS 15 (Revenue Recognition)

Refer to Note 2.8.1 (accounting policy) and Note 3 to these Our audit procedures included;
Financial Statements.
zz Evaluating the appropriateness of the selection of
The Group has adopted SLFRS 15 using the cumulative effect accounting policies and management approach over
method (without practical expedients) on 1st April 2018. adoption and transition applied for SLFRS 15, including
Accordingly, the information presented for 2017/2018 has not the key accounting estimates and judgements made
been restated and continued to be reported under LKAS 18. by the management based on the requirements of the
new standards.
The Group has complex and multiple revenue streams which
requires significant judgements when assessing the performance zz Challenging the reasonableness of management’s key
obligations and recognition of revenue under SLFRS 15. We judgements and estimates made in adopting SLFRS 15
focused on this area as recognition of revenue involved significant and preparing the transition adjustments including selection
judgement and estimates made by the management including, of methods, models, assumptions and data sources.
whether contracts contains multiple performance obligations. zz Evaluating the completeness, accuracy and relevance
This comprises allocation of consideration to the individual of data used in adopting SLFRS 15 and preparing the
performance obligation of multi-element contract as noted above, transition adjustments.
assessing whether performance obligations are satisfied at a zz Communicating our views about the significant
point in time or over time.
qualitative aspects of the entity’s accounting practises,
including accounting policies, estimates and financial
Given the level of subjectivity nature of assumptions/judgements
statement disclosures.
involved and transition adjustments are likely to be subject to
scrutiny from investors/ regulators resulted in revenue has being zz Assessing the adequacy of the financial statements
considered as a key audit matter. disclosure required by SLFRS 15.
02. Impairment allowance for Trade and other Receivables including transition to SLFRS 9
Our audit procedures included:
Refer to Note 2.4.5 (accounting policy) and Note 18.3 to these
Financial Statements. zz Challenging the appropriateness of the selection of
accounting policies based on the requirements of
The Group has recognised impairment provisions relating to the new standards, our business understanding and
trade and other receivables which amounts to Rs. 2,348 million industry practice.
(Company – Rs. 1,654 million).
zz Evaluating the appropriateness of the management
Impairment allowances represent management’s best estimate of approach over adoption, transition and practical
the losses expected within receivables as at the financial position expedients applied for SLFRS 9.
date. They are calculated for specific assets and on a collective zz Assessing management’s new or revised processes,
basis for portfolios of receivables of a similar nature. systems and controls implemented over classification,
measurement and impairment assessment.
The calculation of impairment allowances is inherently zz Challenging the reasonableness of management’s
judgemental for any institution and the Group use subjective
key assumptions/judgements over classification and
assumptions/ judgements made to determine the classification
measurement decisions, adopting of and preparing the
category (e.g. business model and SPPI assessment), and ECL
transitional adjustments.
modelling (e.g. macro-economic inputs) with the adoption of
SLFRS 9 on 1st April 2018. zz Identifying and testing the relevant key controls and
evaluating the completeness, accuracy and relevance
Accordingly, the audit was focused on impairment due to the of data used.
materiality of the balances, significant management judgement zz Evaluating the appropriateness and tested the
relating to classification decisions and determining expected mathematical accuracy of models applied and post-
credit loss outcomes and the subjective nature of the calculation. model adjustments.
173

Given the level of subjectivity nature of significant management zz Assessing the completeness, accuracy and relevance
judgements involved and transition adjustments are likely to of the disclosures required by SLFRS 9 for adoption
be subject to scrutiny from investors/regulators resulted in and transition.
impairment of trade receivables being considered as a key
audit matter.
03. Carrying Value of Inventory

Our audit procedures included:
Refer to Note 2.5 (accounting policy) and Note 16 to these
Financial Statements. zz Challenging the management with regard to the
calculation methodology, the basis for provision and the
The Group has recognised a total inventory provision of process with respect to inventory provision.
Rs. 904 million (Company – Rs. 869 million) in arriving at
a total inventory value of Rs. 14,126 million (Company – zz Testing the design, implementation and operating
Rs. 12,135 million) effectiveness of the key controls management has
established for provision computations and to ensure
The Group has significant levels of inventories and significant the accuracy of the inventory provision.
management judgements are taken with regard to categorisation zz Assessing the adequacy of, and movements in,
of inventories into obsolete and/or slow moving and which should inventory provisions held, by recalculating a sample
be therefore be considered for provision. Estimates are then of items included within the provision to ensure
involved in arriving at provisions against cost in respect of slow appropriate basis of valuation.
moving and obsolete inventories to arrive at valuation based on zz Evaluating, on a sample basis, whether inventories
lower of cost and net realisable value.
were stated at the lower of cost or net realisable value
at the reporting date by comparing the sales prices of
Given the level of significant management judgements and
inventories subsequent to the reporting date.
estimates involved this is considered to be a key audit matter.
zz Evaluating the appropriateness of the assumptions
used based on our knowledge and information of the
client and the industry.
04. Revaluation of the Land and Buildings

Refer to Note 2.3 (accounting policy) and Note 11.1 and 11.10 to Our audit procedures included:
these financial statements.
zz Assessing appropriateness of the key assumptions
The Group has recorded a revaluation gain of Rs. 883 million used against externally published market comparable or
(Company – Rs. 454 million) by revaluing the land and buildings. industry data where available.
Management’s assessment of fair value of these land and zz Assessing the objectivity, independence, competence
buildings are based on valuations performed by a qualified and qualifications of the external valuer.
independent property valuer in accordance with recognised zz Assessing the adequacy of the disclosures in the
industry standards. financial statements.
Estimating the fair value is a complex process which involves a

significant degree of judgement and estimates in respect of price
per perch of the land, capitalisation rates, value per square feet,
diversity of locations and nature of the properties.
We identified assessing the valuation of land and building

and investment properties owned by the Group as a key audit
matter because of the complexity of the valuation, significant
judgement and estimation.
174

05. Contingent Liability on Deemed VAT Assessment

Refer to Note 37.4 in these Financial Statements. Our audit procedures included:
The Group has tax assessments which requires disclosures in the zz Discussions with management and those who charged
financial statements. The Assessment Notice received by Singer with governance to understand the nature and status of
(Sri Lanka) PLC, relating to deemed VAT is significant. tax assessment.
Commissioner General of Inland Revenue has issued assessment zz Inspecting correspondence with tax consultants and
notices on Singer (Sri Lanka) PLC pertaining to an additional lawyer’s opinions obtained by the management in
VAT Liability/Payment on account of Deemed VAT for seven assessing the likelihood of outflow of resources have
quarters for the period 1st January 2014 to 30th September become probable.
2015. The assessment was for a Deemed VAT payment of Rs.
1,076 million and Penalty of Rs. 423 million totalling to Rs. 1,499
zz Assessing the adequacy and appropriateness of the
million. Commissioner General of Inland Revenue has given Group’s disclosure on deemed VAT assessment in
the determination on the appeal. Accordingly, Rs.791 million of accordance with accounting standards.
Deemed VAT liability and penalty of Rs. 395 million totalling to
Rs. 1,186 million is payable as a Deemed VAT liability for seven
quarters for the period 1st January 2014 to 30th September
2015. The Company after carefully reviewing the advice of
tax consultants, is of the opinion that there is no basis for the
Company to be made liable for Deemed VAT and accordingly
company has decided to appeal to the Tax Appeal Commission
against the determination. Hence, no provision has been made in
the Financial Statements.
The outcome of the deemed VAT assessment is uncertain and
as it requires the management to make significant judgements
and estimates in relation to the likely outcome of these tax
issues and exposures.
Given the significant value relating to the Deemed VAT
assessment and judgemental nature of this contingent liability,
this is considered to be a key audit matter.
Other Information Responsibilities of Management and Those Charged with

Management is responsible for the other information. The Governance for the Financial Statements
other information comprises the information included in the Management is responsible for the preparation of Financial
Annual Report, but does not include the Financial Statements Statements that give a true and fair view in accordance with
and our Auditor’s Report thereon. Sri Lanka Accounting Standards, and for such internal control
as management determines is necessary to enable the
Our opinion on the Financial Statements does not cover preparation of Financial Statements that are free from material
the other information and we do not express any form of misstatement, whether due to fraud or error.
assurance conclusion thereon.
In preparing the Financial Statements, management is
In connection with our audit of the Financial Statements, responsible for assessing the Group’s ability to continue as
our responsibility is to read the other information and, a going concern, disclosing, as applicable, matters related
in doing so, consider whether the other information is to going concern and using the going concern basis of
materially inconsistent with the Financial Statements or our accounting unless management either intends to liquidate the
knowledge obtained in the audit or otherwise appears to be Group or to cease operations, or has no realistic alternative
materially misstated. but to do so.
When we read the annual report, if we conclude that there Those charged with governance are responsible for overseeing
is a material misstatement there in, we are required to the Company’s and the Group’s financial reporting process.
communicate the matter to those charged with governance.
175

whether the Financial Statements represent the underlying

Auditor’s Responsibilities for the Audit of the transactions and events in a manner that achieves
Financial Statements fair presentation.
Our objectives are to obtain reasonable assurance about zz Obtain sufficient appropriate audit evidence regarding the
whether the Financial Statements as a whole are free from financial information of the entities or business activities
material misstatement, whether due to fraud or error, and within the Group to express an opinion on the Consolidated
to issue an Auditor’s Report that includes our opinion. Financial Statements. We are responsible for the direction,
Reasonable assurance is a high level of assurance, but is supervision and performance of the group audit. We remain
not a guarantee that an audit conducted in accordance with solely responsible for our audit opinion.
SLAuSs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and We communicate with those charged with governance
are considered material if, individually or in the aggregate, regarding, among other matters, the planned scope and
they could reasonably be expected to influence the timing of the audit and significant audit findings, including
economic decisions of users taken on the basis of these any significant deficiencies in internal control that we identify
Financial Statements. during our audit.
As part of an audit in accordance with SLAuSs, we exercise We also provide those charged with governance with a
professional judgement and maintain professional skepticism statement that we have complied with ethical requirements in
throughout the audit. We also: accordance with the Code of Ethics regarding independence,
and to communicate with them all relationships and other
zz Identify and assess the risks of material misstatement of the matters that may reasonably be thought to bear on our
Financial Statements, whether due to fraud or error, design independence, and where applicable, related safeguards.
and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate From the matters communicated with those charged with
to provide a basis for our opinion. The risk of not detecting governance, we determine those matters that were of most
a material misstatement resulting from fraud is higher than significance in the audit of the Financial Statements of the
for one resulting from error, as fraud may involve collusion, current period and are therefore the key audit matters. We
forgery, intentional omissions, misrepresentations, or the describe these matters in our Auditor’s Report unless law or
override of internal control. regulation precludes public disclosure about the matter or
zz Obtain an understanding of internal control relevant to when, in extremely rare circumstances, we determine that a
the audit in order to design audit procedures that are matter should not be communicated in our report because
appropriate in the circumstances, but not for the purpose of the adverse consequences of doing so would reasonably
expressing an opinion on the effectiveness of the Company be expected to outweigh the public interest benefits of
and the Group’s internal control. such communication.
zz Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and Report on Other Legal and Regulatory Requirements
related disclosures made by management. As required by section 163 (2) of the Companies Act No. 07 of
zz Conclude on the appropriateness of management’s use 2007, we have obtained all the information and explanations
of the going concern basis of accounting and, based on that were required for the audit and, as far as appears from
the audit evidence obtained, whether a material uncertainty our examination, proper accounting records have been kept
exists related to events or conditions that may cast by the Company.
significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty CA Sri Lanka membership number of the engagement
exists, we are required to draw attention in our Auditor’s partner responsible for signing this independent auditor’s
Report to the related disclosures in the Financial Statements report is 3272.
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 Group to cease
to continue as a going concern.
zz Evaluate the overall presentation, structure and content of CHARTERED ACCOUNTANTS
the Financial Statements, including the disclosures, and Colombo, Sri Lanka
16th May 2019
176 5 13 25 35
STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME
Consolidated Company
For twelve For fifteen For twelve For fifteen
months ended months ended months ended months ended
Note Rs. Rs. Rs. Rs.
Revenue 3 58,505,395,240 65,122,304,522 43,617,889,429 50,910,032,892

Cost of Sales (41,139,965,111) (45,632,148,268) (31,320,692,490) (36,728,240,797)
Direct Interest Cost (1,265,014,487) (1,281,563,416) – –
Gross Profit 16,100,415,639 18,208,592,838 12,297,196,939 14,181,792,095
Other Income 5 338,061,691 360,258,175 590,066,636 1,088,431,100
Selling and Administrative Expenses (11,919,695,025) (13,361,827,374) (10,233,588,367) (11,824,669,954)
Impairment Loss on Trade Receivables 8.1 (521,421,384) (367,607,130) (212,806,334) (137,147,306)
Operating Profit 3,997,360,921 4,839,416,509 2,440,868,874 3,308,405,935
Finance Income 6 207,670,679 175,549,720 453,906,643 344,598,049
Finance Cost 7 (3,240,746,377) (2,706,924,672) (2,774,862,229) (2,494,325,151)
Net Finance Cost (3,033,075,698) (2,531,374,952) (2,320,955,586) (2,149,727,102)
Value Added Tax on Financial Services (292,156,111) (258,989,411) (31,200,000) (52,800,000)
Profit Before Tax 8 672,129,112 2,049,052,146 88,713,288 1,105,878,833
Income Tax Expense 9 (286,148,529) (828,757,533) 51,837,151 (106,855,559)
Profit for the Period 385,980,583 1,220,294,613 140,550,439 999,023,274
Other Comprehensive Income
Items that will not be Reclassified to
Profit or Loss
Revaluation of Property, Plant and Equipment 882,824,365 – 453,751,963 –
Re-measurement of Employee Benefit Obligation 27 (21,158,221) (18,910,000) (26,947,676) (9,478,416)
Related Taxes
Tax on Other Comprehensive Income 9.4 5,871,651 6,319,485 7,545,349 2,653,957
Deferred Tax on Revaluation of Property, Plant and
Equipment 9.4 (247,190,822) (516,049,055) (127,050,550) (198,082,001)
Other Comprehensive Income for the period,
Net of Tax 620,346,973 (528,639,570) 307,299,086 (204,906,460)
Total Comprehensive Income for the Period,
Net of Tax 1,006,327,556 691,655,043 447,849,525 794,116,814
Profit Attributable to:
Owners of the Company 250,121,091 1,043,682,205 140,550,439 999,023,274
Non-Controlling Interests 135,859,492 176,612,408 – –
Total Comprehensive Income Attributable to: 385,980,583 1,220,294,613 140,550,439 999,023,274
Owners of the Company 799,204,104 580,225,153 447,849,525 794,116,814
Non-Controlling Interests 207,123,452 111,429,890 – –
1,006,327,556 691,655,043 447,849,525 794,116,814
Earnings per Share – Basic (Rs.) 10.2 0.67 2.78 0.37 2.66
Dividend per Share (Rs.) – – 0.65 2.20
The Notes on pages 183 through 270 form an integral part of these Financial Statements.
16th May 2019
Colombo
101 271 177
INFORMATION
STATEMENT OF FINANCIAL POSITION

As at 31st March 2019 31st March 2018 31st March 2019 31st March 2018
Assets
Property, Plant and Equipment 11 6,704,648,597 5,649,423,644 3,498,021,139 3,082,597,562
Intangible Assets 12 268,296,168 281,316,991 201,000,888 207,145,304
Investment in Subsidiaries 13 – – 2,900,872,703 2,925,222,314
Other Non-Current Assets 14 63,219,073 64,520,322 – –
Other Investments 15.1 17,061,300 17,061,300 616,202,652 929,110,000
Trade and Other Receivables 18.1 11,478,309,145 9,162,979,851 1,432,236,418 1,341,906,019
Deferred Tax Assets 26 – – 264,757,033 69,642,532
Non-Current Assets 18,531,534,283 15,175,302,108 8,913,090,833 8,555,623,731
Inventories 16 14,125,716,969 12,573,709,862 12,135,241,818 10,741,281,063
Loans Due from Related Parties 17 – – 1,215,819,977 1,219,150,767
Income Tax Receivables 31 70,953,640 46,635,361 240,187,686 157,630,474
Trade and Other Receivables 18.2 22,672,158,380 20,685,222,631 12,860,387,063 12,142,047,361
Amounts due from Related Parties 19 – 788,000 3,310,666 185,396,027
Other Financial Assets 35.2 85,648,063 – 85,648,063 –
Deposits with Banks 83,323,971 81,504,012 – –
Other Investments 15.2 623,372,330 671,382,640 312,090,000 –
Cash and Cash Equivalents 20.1 1,849,642,830 1,339,006,740 1,337,712,692 1,017,627,946
Current Assets 39,510,816,183 35,398,249,246 28,190,397,965 25,463,133,638
Total Assets 58,042,350,466 50,573,551,354 37,103,488,798 34,018,757,369
Equity
Stated Capital 21 626,048,050 626,048,050 626,048,050 626,048,050
Capital Reserves 22 1,118,122,637 577,919,322 1,158,333,041 847,555,412
Statutory Reserves 23 163,096,146 136,009,451 – –
Revenue Reserves 24 5,035,830,612 5,495,477,725 2,851,601,145 3,326,088,413
Total Equity Attributable to Owners of the Company 6,943,097,445 6,835,454,548 4,635,982,236 4,799,691,875
Non-Controlling Interests 40 1,508,546,318 1,349,113,961 – –
Total Equity 8,451,643,763 8,184,568,509 4,635,982,236 4,799,691,875
Liabilities
Interest-Bearing Loans and Borrowings 25 10,640,159,470 4,319,898,408 7,373,929,275 2,532,149,832
Employee Benefit Obligations 27 871,971,129 794,644,981 630,757,966 574,009,152
Security Deposits 28 1,388,433,021 1,199,127,333 1,332,128,051 1,199,127,333
Deferred Tax Liability 26 246,869,202 467,235,592 – –
Other Financial Liabilities 35.1 804,555,534 411,393,904 – –
Deferred Revenue 30 85,928,321 126,328,596 85,928,321 126,328,596
Other Non-Current Liabilities 29.3 143,126,349 – 143,126,349 –
Non-Current Liabilities 14,181,043,026 7,318,628,814 9,565,869,962 4,431,614,913
Trade and Other Payables 29 7,321,038,209 8,112,971,678 5,114,175,724 6,003,703,096
Deferred Revenue 30 188,044,737 119,961,349 182,534,759 119,961,349
Dividends Payables 32 88,496,948 220,838,973 49,212,196 166,754,628
Amounts Due to Related Parties 34 256,020,865 389,037,813 2,762,311,875 3,012,216,978
Other Financial Liabilities 35.1/35.2 5,148,467,467 4,826,583,524 – 8,337,510
Interest-Bearing Loans and Borrowings 25 19,491,167,297 19,268,269,452 13,376,313,438 14,239,388,295
Bank Overdrafts 20.2 2,916,428,154 2,132,691,242 1,417,088,608 1,237,088,725
Current Liabilities 35,409,663,677 35,070,354,031 22,901,636,600 24,787,450,581
Total Liabilities 49,590,706,703 42,388,982,845 32,467,506,562 29,219,065,494
Total Equity and Liabilities 58,042,350,466 50,573,551,354 37,103,488,798 34,018,757,369
I certify that the Financial Statements of the Company comply with the requirements of the Companies Act No. 07 of 2007.
Lalith Yatiwella
Finance Director
The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board by,

Mohan Pandithage Mahesh H Wijewardene
Chairman Director/Group Chief Executive Officer
16th May 2019
Colombo
178 5 13 25 35
STATEMENT OF CHANGES IN EQUITY

Consolidated
Stated Reserve
Capital Fund
Note Rs. Rs.
Balance at 1st January 2017 626,048,050 95,360,709

Realisation of Revaluation Surplus 22.1 – –
Transferred to/(from) During the Period – 40,648,742
Total Comprehensive Income for the Period
Profit for the Period – –
Re-measurement of Employee Benefit Obligation 27 – –
Related Taxes
Tax on Other Comprehensive Income 9.4 – –
Deferred Tax on Revaluation of Lands 9.4 – –
Total Other Comprehensive Income for the Period – –
Total Comprehensive Income for the Period – –
Transactions with Owners of the Company, Recognised Directly in Equity
Distributions to Owners of the Company
Final Dividend – 2016 33 – –
Interim Dividend – 2017/18 33 – –
Total Distributions to Owners of the Company – –
Changes in Ownership interest in Subsidiaries
Right Issue Cost – –
Right Issue to Non-Controlling Interest – –
Gain on Acquisition of additional shares in Right issue – –
Effect of Change in Holding in Subsidiaries – –
Balance at 31st March 2018 626,048,050 136,009,451
Adjustment on Error Correction (Note 11.2) – –
Adjustment of Initial Application of SLFRS 9 net of tax – –
Adjustment of Initial Application of SLFRS 15 net of tax – –
Adjusted Balance as at 1st April 2018 626,048,050 136,009,451
Realisation on Revaluation Surplus – –
Transferred to/(from) during the year – 27,086,695
Total Comprehensive Income for the Year
Profit for the Year – –
Revaluation of Property, Plant and Equipment 22.1 –
Re-measurement of Employee Benefit Obligation 27 – –
Related Taxes – –
Tax on Other Comprehensive Income 9.4 – –
Deferred tax on Revaluation of Property, Plant and Equipment 9.4 – –
Total Other Comprehensive Income for the Year – –
Total Comprehensive Income for the Year – –
Transactions with Owners of the Company, Recognised Directly in Equity
Dividend paid in terms of bonus issue – –
Interim Dividend – 2018/19 33 – –
Total Distributions to Owners of the Company – –
Changes in Ownership interest in Subsidiaries
Effect of Change in Holdings in Subsidiaries – –
Total Transactions with owners of the Company – –
Balance at 31st March 2019 626,048,050 163,096,146
101 271 179
INFORMATION
Statement of Changes in Equity
Attributable to Equity Holders of the Company

Revaluation General Retained Total Non-Controlling Total
Reserves Reserves Earnings Interest
Rs. Rs. Rs. Rs. Rs. Rs.
1,057,964,069 2,700,000,000 3,674,443,725 8,153,816,553 1,401,088,060 9,554,904,613

(28,213,846) – 28,213,846 – – –
– – (40,648,742) – – –
– – 1,043,682,205 1,043,682,205 176,612,408 1,220,294,613
– – (17,615,944) (17,615,944) (1,294,056) (18,910,000)
– – 5,989,793 5,989,793 329,692 6,319,485

(451,830,901) – (451,830,901) (64,218,154) (516,049,055)
(451,830,901) – (11,626,151) (463,457,052) (65,182,518) (528,639,570)
(451,830,901) – 1,032,056,054 580,225,153 111,429,890 691,655,043
– – (1,101,844,568) (1,101,844,568) (120,545,099) (1,222,389,667)

– – (826,383,426) (826,383,426) (92,297,193) (918,680,619)
– – (1,928,227,994) (1,928,227,994) (212,842,292) (2,141,070,286)
– – (1,989,651) (1,989,651) – (1,989,651)

– – – – 77,732,040 77,732,040
– – 3,336,750 3,336,750 – 3,336,750
– – 28,293,737 28,293,737 (28,293,737) –
577,919,322 2,700,000,000 2,795,477,725 6,835,454,548 1,349,113,961 8,184,568,509
– – 43,358,242 43,358,242 6,069,758 49,428,000
– – (283,954,015) (283,954,015) (21,946,844) (305,900,859)
– – (188,078,569) (188,078,569) – (188,078,569)
577,919,322 2,700,000,000 2,366,803,383 6,406,780,206 1,333,236,875 7,740,017,081
(24,389,920) – 24,389,920 – – –
– – (27,086,695) – – –
– – 250,121,091 250,121,091 135,859,492 385,980,583
784,157,271 – – 784,157,271 98,667,094 882,824,365

– (21,499,348) (21,499,348) 341,127 (21,158,221)
5,989,126 5,989,126 (117,475) 5,871,651

(219,564,036) – (219,564,036) (27,626,786) (247,190,822)
564,593,235 – (15,510,222) 549,083,013 71,263,960 620,346,973
564,593,235 – 234,610,869 799,204,104 207,123,452 1,006,327,556
– – (8,788,026) (8,788,026) (1,230,244) (10,018,270)

– – (244,158,740) (244,158,740) (78,922,778) (323,081,518)
– – (252,946,766) (252,946,766) (80,153,022) (333,099,788)
– – (9,940,099) (9,940,099) 48,339,013 38,398,914

– – (262,886,865) (262,886,865) (31,814,009) (343,039,887)
1,118,122,637 2,700,000,000 2,335,830,612 6,943,097,445 1,508,546,318 8,451,643,763
180 5 13 25 35
Statement of Changes in Equity
Company
Stated Capital Revaluation General Retained Total
Reserves Reserves Earnings
Note Rs. Rs. Rs. Rs. Rs.
Balance as at 1 January 2017 626,048,050 1,065,542,144 2,700,000,000 1,542,212,861 5,933,803,055

Realisation on Revaluation Surplus 22.1 – (19,904,731) – 19,904,731 –
Profit for the Period – – – 999,023,274 999,023,274
Remeasurement of Employee Benefit Obligations 27 – – – (9,478,416) (9,478,416)
Related Taxes
Tax on Other Comprehensive Income 9.4 – – – 2,653,957 2,653,957
Deferred Tax on Revaluation of Lands 9.4 – (198,082,001) – – (198,082,001)
Total Other Comprehensive Income – (198,082,001) – (6,824,459) (204,906,460)
Total Comprehensive Income for the period – (198,082,001) – 992,198,815 794,116,814
Transactions with owners of the Company,
Recognised Directly in Equity
Distributions to Owners of the Company –
Final Dividend – 2016 33 – – – (1,101,844,568) (1,101,844,568)
Interim Dividend – 2017/18 33 – – – (826,383,426) (826,383,426)
Total Distributions to Owners of the
Company – – – (1,928,227,994) (1,928,227,994)
Balance as at 31st March 2018 626,048,050 847,555,412 2,700,000,000 626,088,413 4,799,691,875
Adjustment of Initial Application of SLFRS 9 net of tax (179,321,855) (179,321,855)
Adjustment of Initial Application of SLFRS 15 net of tax (188,078,569) (188,078,569)
Restated Balance as at 1st April 2018 626,048,050 847,555,412 2,700,000,000 258,687,989 4,432,291,451
Realisation on Revaluation Surplus 22.1 – (15,923,784) – 15,923,784 –
Profit for the Year – – – 140,550,439 140,550,439
Revaluation of Property, Plant and Equipment – 453,751,963 – – 453,751,963
Re-measurement of Employee Benefit Obligation 27 – – – (26,947,676) (26,947,676)
Related Taxes
Tax on Other Comprehensive Income 9.4 – – – 7,545,349 7,545,349
Deferred Tax on Revaluation of Property, Plant and
Equipment 9.4 – (127,050,550) – – (127,050,550)
Total Other Comprehensive Income – 326,701,413 – (19,402,327) 307,299,086
Total Comprehensive Income for the Period – 326,701,413 – 121,148,112 447,849,525
Transactions with Owners of the Company,
Recognised Directly in Equity
Interim Dividend – 2018/19 33 – – – (244,158,740) (244,158,740)
Total Distributions to owners of the Company – – – (244,158,740) (244,158,740)
Balance at 31st March 2019 626,048,050 1,158,333,041 2,700,000,000 151,601,145 4,635,982,236
101 271 181
INFORMATION
STATEMENT OF CASH FLOWS

Cash Flows from/(used in) Operating

Activities
Profit before Income Tax Expense 672,129,112 2,049,052,146 88,713,288 1,105,878,833
Adjustments for:
Depreciation on Property, Plant and Equipment 11.2 579,242,530 632,735,522 453,474,287 509,249,151
12.2,
Amortisation of Intangible Assets 12.3 21,698,455 31,694,467 11,947,019 22,343,871
Impairment of Software 12.2 – 5,605,554 – –
Amortisation of Leasehold Rights 14 1,301,249 542,188 – –
(Gain)/Loss on Disposal of Property,
Plant and Equipment 5 279,943 10,851,256 483,591 11,220,725
Changing Fair Value of Derivative (Assets)/Liabilities (93,985,573) 8,337,510 (93,985,573) 8,337,510
(Gain)/Loss on Disposal of Shares 5 – – (14,049,303) –
Interest Expense 7 3,240,746,377 2,706,924,672 2,774,862,239 2,494,325,151
Interest Income 6 (207,670,679) (175,549,720) (453,906,643) (344,598,049)
Impairment of Inventory 16.1 172,995,327 15,211,882 174,028,852 44,233,025
Impairment on Trade and Other Receivables 18.3 783,159,310 652,643,612 474,683,286 422,183,787
Dividend Income 5 (206,400) (180,000) (462,621,207) (923,613,843)
Provision for Employee Benefit Obligations 27 144,669,128 161,489,696 103,310,278 114,418,462
Operating Profit Before Working Capital
Changes 5,314,358,779 6,099,358,785 3,056,940,114 3,463,978,623
(Increase)/Decrease in Inventories (1,725,002,433) (3,048,593,785) (1,567,989,606) (2,992,019,040)
(Increase)/Decrease in Debtors falling due
after one Year (2,317,799,858) (956,898,739) (92,800,964) 546,560,764
(Increase)/Decrease in Debtors falling due within
one Year (3,149,966,224) (4,749,047,702) (1,436,627,030) (2,648,991,630)
(Increase)/Decrease in dues from Related Parties 788,000 (788,000) 182,085,361 (110,613,182)
Increase/(Decrease) in dues to Related Parties 14,543,920 16,182,262 (102,344,235) 1,762,442,545
Increase/(Decrease) in Security Deposits 189,305,688 180,675,482 133,000,718 180,675,483
Increase/(Decrease) in Trade and Other Payables (786,452,908) 1,746,166,960 (884,046,810) 1,211,050,044
Increase/(Decrease) in Deferred Liabilities (61,290,490) (192,699,301) (66,800,467) (192,699,301)
Cash Generated from (used in) Operations (2,521,515,526) (905,644,038) (778,582,919) 1,220,384,306
Finance Costs Paid (3,156,107,807) (2,706,924,670) (2,737,523,238) (2,494,325,153)
Employee Benefits Paid 27 (88,501,201) (36,898,710) (73,509,140) (26,642,192)
Income Tax Paid 31 (686,410,946) (1,039,106,287) (237,898,052) (380,519,169)
Net Cash from/(used in) Operating Activities (6,452,535,480) (4,688,573,705) (3,827,513,349) (1,681,102,208)
182 5 13 25 35
STATEMENT OF CASH FLOWS
Cash Flows from Investing Activities

Acquisition of Property, Plant and Equipment and
Intangible Assets 11/12 (742,257,768) (944,186,483) (465,178,897) (616,783,182)
Proceeds from Disposal of Property, Plant and
Equipment 50,307,074 20,938,048 43,746,800 20,188,759
Investment in shares in Subsidiary Company – – – (470,042,325)
Investment in leasehold rights – (65,062,510) – –
Proceeds from disposal of shares/Investment in
Debentures in Subsidiary Company 38,398,914 – 38,398,914 –
(Acquisition)/Disposal of Marketable Securities 48,010,310 (156,127,059) – –
Investment/(Withdrawal) in Bank Deposits (1,819,959) (346,333) – –
Net Cash flows from Loans Given to Related
Companies – – 2,000,000 158,923,929
Interest Received 207,670,678 175,549,720 453,906,643 344,598,049
Dividend Received 206,400 180,000 462,621,207 923,613,843
Net Cash Flows used in Investing Activities (399,484,349) (969,054,617) 535,494,667 360,499,073
Cash Flows from Financing Activities
Proceeds From Interest – Bearing Loans and
Borrowings 59,084,657,219 41,272,217,086 38,845,046,556 28,182,883,821
Repayment of Interest – Bearing Loans and
Borrowings (52,626,136,881) (37,442,108,649) (34,903,680,972) (26,001,752,260)
Decrease in Customer Deposit Liabilities 723,383,081 2,196,030,528 – –
Proceeds from Right Issue Purchased by Minority
Shareholders – 81,068,790 – –
Right Issue Cost – (1,989,651) – –
Net Payment to Minority Shareholders (78,922,778) (212,842,292) – –
Dividends Paid (524,061,633) (1,358,992,630) (509,262,040) (1,409,141,672)
Net Cash Flows Generated from Financing
Activities 6,578,919,008 4,525,045,672 3,432,103,545 763,652,379
Net Increase/(Decrease) in Cash and Cash
Equivalents (273,100,822) (1,132,582,650) 140,084,863 (556,950,756)
Cash and Cash Equivalents at the Beginning of the Year (793,684,502) 338,898,148 (219,460,779) 337,489,977
Cash and Cash Equivalents at the End of the Year 20 (1,066,785,324) (793,684,502) (79,375,916) (219,460,779)
101 271 183
INFORMATION
NOTES TO THE FINANCIAL STATEMENTS

Note 1 Corporate Information 184
Note 2 Significant Accounting Policies 187
Note 3 Revenue 210
Note 4 Operating Segments Information 211
Note 5 Other Income 213
Note 6 Finance Income 213
Note 7 Finance Cost 214
Note 8 Profit Before Tax 214
Note 9 Income Tax Expense 215
Note 10 Earnings Per Share 217
Note 11 Property, Plant and Equipment 218
Note 12 Intangible Assets 226
Note 13 Investments in Subsidiaries – Company 229
Note 14 Other Non-Current Assets 230
Note 15 Other Investments 230
Note 16 Inventories 232
Note 17 Loans Due from Related Parties 232
Note 18 Trade and Other Receivables 233
Note 19 Amounts Due from Related Parties 237
Note 20 Cash and Cash Equivalents 237
Note 21 Stated Capital 237
Note 22 Capital Reserves 238
Note 23 Statutory Reserves 238
Note 24 Revenue Reserves 239
Note 25 Interest-Bearing Loans and Borrowings 240
Note 26 Deferred Tax Assets/(Liabilities) 244
Note 27 Employee Benefit Obligations 246
Note 28 Security Deposits 248
Note 29 Trade and Other Payables 248
Note 30 Deferred Revenue 249
Note 31 Income Tax Payables/(Receivables) 250
Note 32 Dividend Payables 250
Note 33 Dividends 250
Note 34 Amounts due to Related Parties 250
Note 35 Other Financial Liabilities 251
Note 36 Financial Instruments 252
Note 37 Commitments and Contingencies – Group/Company 265
Note 38 Events Occurring after the Reporting Period 267
Note 39 Related Party Transactions 267
Note 40 Non-Controlling Interest 270
184 5 13 25 35
Notes To The Financial Statements
1. Corporate Information reporting period. Therefore, the comparative year information

1.1 Reporting Entity comprises a period of fifteen months from 1st January 2017
to 31st March 2018. The current year amounts comprise as at
1.1.1 General
and for the period of twelve months ended 31st March 2019.
Singer (Sri Lanka) PLC is a public limited liability company Therefore, amounts presented in the Financial Statements are
incorporated and domiciled in Sri Lanka. The Registered not entirely comparable. The disclosures pertaining to change
Office of the Company is located at No 112, Havelock Road, of the financial reporting period has been made in accordance
Colombo 05, and the principal place of business is situated at with LKAS 1 on “Presentation of Financial Statements”. The
the above address. Consolidated Financial Statements of Singer (Sri Lanka) PLC
as at and for the period ended 31st March 2019 comprise the
In the Report of the Directors and in the Financial Statements, Company and its Subsidiaries namely, Singer Finance (Lanka)
“the Company” refers to Singer (Sri Lanka) PLC as the Holding PLC, Singer Industries (Ceylon) PLC, Regnis (Lanka) PLC,
Company and “the Group” refers to the Consolidated Financial Reality Lanka Limited, Regnis Appliances (Pvt) Limited, Singer
Statements of Singer (Sri Lanka) PLC and its Subsidiaries, Digital Media (Pvt) Limited, Singer Business School (Pvt)
Singer Finance (Lanka) PLC, Singer Industries (Ceylon) PLC, Limited and Domus Lanka (Pvt) Limited.
Regnis (Lanka) PLC, Reality Lanka Limited, Regnis Appliances
(Pvt) Limited, Singer Digital Media (Pvt) Limited, Singer
Subsidiaries
Business School (Pvt) Limited and Domus Lanka (Pvt) Limited.
The ordinary shares of the Company are listed on the Singer Finance (Lanka) PLC, was incorporated on 19th
Colombo Stock Exchange of Sri Lanka. April 2004 under the Companies Act No. 17 of 1982 and
re-registered under the Company’s Act No. 07 of 2007 and its
Hayleys PLC together with its subsidiaries, Volanka (Pvt) Ltd., commercial operations commenced on 8th July 2004. Singer
and Carbotels (Pvt) Ltd., acquired on 15th September 2017 (Sri Lanka) PLC owns 79.93% of its equity shares.
a total of 231,864,362 ordinary shares in Singer (Sri Lanka)
PLC, constituting approximately 61.73% of the total shares in Singer Industries (Ceylon) PLC
issue at a price of Rs. 47/- per share, making Hayleys PLC the Singer Industries (Ceylon) PLC was incorporated on
ultimate controlling party of Singer (Sri Lanka) PLC with effect 13th December 1963 and re-registered under the Companies
from 15th September 2017. Act No. 07 of 2007 and its commercial operations
commenced on 13th December 1963. Singer (Sri Lanka) PLC
Consequent to the purchase of 210,587,766 shares, a owns 87.7% of its equity shares.
mandatory offer was made by Hayleys PLC on 31st October
2017 as Hayleys PLC triggered the Company takeovers and
Regnis Lanka PLC
Mergers Code 1995, published under the rules made by the
Securities and Exchange Commission of Sri Lanka under Regnis (Lanka) PLC was incorporated on 8th October 1987
Section 53 of the Securities and Exchange Commission of under the Companies Act No. 17 of 1982 and re-registered
Sri Lanka, Act No. 36 of 1987 as amended, and in terms of under the Companies Act No. 07 of 2007 and its commercial
Rule 31 (1) (a) of the Code. Accordingly subsequent to the operations commenced on 8th October 1987. Singer
mandatory offer, Hayleys PLC, with parties acting in concern (Sri Lanka) PLC owns 58.3% of its equity shares.
holds 304,108,410 shares constituting approximately 80.96%
of the total shares in issue . Reality Lanka Limited
Reality Lanka Limited was incorporated on 29th
On 15th October 2018, Hayleys PLC purchased the balance September 2006 under the Companies Act No. 17 of 1982
35,562,883 (9.47%) ordinary shares held by Retail Holdings and re-registered under the Companies Act No. 07 of
(Sri Lanka) BV in Singer (Sri Lanka) PLC at a price of Rs. 47.00 2007 and its commercial operations commenced on 29th
per share upon Retail Holdings (Sri Lanka) BV exercising their September 2006. Singer (Sri Lanka) PLC directly, indirectly
option to sell its shares to Hayleys PLC as previously agreed. owns 88.2% of its equity shares.
After accepting this offer, Hayleys PLC together with its Group
Companies holds 90.43% (80.96% previously) of Singer
(Sri Lanka) PLC.
Regnis Appliances (Pvt) Limited, was Incorporated on
18th January 2010 under the Companies Act No. 07 of 2007
1.1.1.1 Changing the Reporting Period
and commenced its commercial operations on 1st October
The reporting period of Singer (Sri Lanka) PLC, has been 2010. Singer (Sri Lanka) PLC indirectly owns 58.3% of its
changed from 31st December to 31st March with effect equity shares.
from Financial Year 2017/18 in order to align with the parents
101 271 185
INFORMATION
Singer Digital Media (Pvt) Limited Subsidiary

Singer Digital Media (Pvt) Limited was incorporated on 16th Singer Industries (Ceylon) PLC
May 2014 under the Companies Act No. 07 of 2007 and its The principal activities of the Company are assembling sewing
commercial operations commenced on 8th July 2014. Singer machines and manufacturing of cabinets and stands for
Digital Media (Pvt) Limited is a fully-owned Subsidiary. sewing machines.
Singer Business School (Pvt) Limited Subsidiary

A fully-owned Subsidiary, Singer Business School (Pvt) Limited Regnis Lanka PLC
was incorporated on 5th May 2015 under the Companies Act The principal activities of the Company are manufacturing of
No. 07 of 2007 and its commercial operations commenced on Refrigerators and Bottle Coolers.
5th May 2015
Subsidiary
Domus Lanka (Pvt) Limited was incorporated on 4th January
The principal activities of the Company are renting of company
2018 under the Company Act No. 07 of 2007.
property and property development.
Associates (Equity Accounted Investees)

Subsidiary
Associate companies of the Group, whose results have been
included in the Consolidated Financial Statements are:
Telshan Network (Pvt) Limited. Principal activities of Regnis Appliances (Pvt) Limited are
manufacturing and assembling of Washing Machines, producing
All above companies are incorporated in Sri Lanka. plastic components for Refrigerators and Plastic Chairs.
1.1.3 Principal Activities and Nature of Operations Subsidiary

The Company Singer Digital Media (Pvt) Limited
The Company is engaged in Retail and Wholesale Marketing, The principal activity of the Company is marketing mobile and
Financing, Assembling, Manufacturing and Financial Services. smart phones.
The Company markets Consumer Electronics, Home
Appliances, Mobile and smart Phones, Personal Computers, Subsidiary
Laptops, Furniture, Domestic and Industrial Sewing Machines, Singer Business School (Pvt) Limited
Agricultural Equipment, and provides Financing through Hire The principal activity of the Company is provisioning of
Purchase. In addition, the Company manufactures and sells educational services.
Furniture, Water Pumps and assembles and sells Motor Cycles
and Two Wheel Tractors. The Company also acts as a Bill Subsidiary
Collection Agent for banks, mobile service providers, National
Water Supply and Drainage Board, Ceylon Electricity Board
and is also a sub-agent for Western Union. Domus Lanka (Pvt) Limited was incorporated on 4th January
2018 (formerly known as D.V.D. Lanka (Pvt) Limited. The
principal activity of the Company is carrying on the business
Subsidiary
of designing, manufacturing and trading furniture. However
Singer Finance (Lanka) PLC no commercial operations have been commenced as of the
The principal activities of the Company consist of finance reporting period.
leasing, hire purchase financing, gold loan, financing of
consumer durables under loan scheme and granting loans, 1.1.4 Parent Enterprise
factoring, credit card, authorised foreign currency dealer and
The Company’s Parent undertaking is Hayleys PLC.
mobilising fixed deposits and savings.
Singer Finance (Lanka) PLC (“Company”), regulated under 1.1.5 Number of Employees
the Finance Business Act No. 42 of 2011, was incorporated The number of employees of the Group at the end of the
on 19th April 2004 as a Public Limited Liability Company year was 2,798 (2017/18 – 2,617), Company – 1,827
domiciled in Sri Lanka under the provisions of the Companies (2017/18 – 1,781).
Act No. 17 of 1982 and re-registered under the Companies
Act No. 07 of 2007.
186 5 13 25 35
1.2 Basis of Accounting Information about significant areas of estimation uncertainty

1.2.1 Statement of Compliance and critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in
The Financial Statements have been prepared in accordance
the Financial Statements is included in the following Notes:
with Sri Lanka Accounting Standards (hereinafter referred
to as SLFRSs/LKASs ) issued by The Institute of Chartered zz Note 11 – Valuation of Land and Building
Accountants of Sri Lanka (CA Sri Lanka) and the requirements zz Note 12 – Measurement of Intangible Assets
of the Companies Act No. 07 of 2007.
zz Note 16 – Provision for Inventories
1.2.2 Responsibility for Financial Statements zz Note 18 – Impairment of Trade and other receivables
The Board of Directors is responsible for preparation and zz Note 9/26 – Current Tax and Deferred Tax assets and Liabilities
presentation of the Financial Statements of the Company as zz Note 27 – Measurement of Employee Benefit Obligations
per the provisions of the Companies Act No. 07 of 2007 and
Sri Lanka Accounting Standards. The Directors’ Responsibility zz Note 29 – Provision for Warranty
over Financial Statements is set out in detail in the Statement zz Note 36 – Financial Instrument
of Directors’ Responsibility. zz Note 37 – Commitments and Contingencies
1.2.3 Approval of Financial Statements

Measurement of Fair Value
The Financial Statements for the year ended 31st March 2019
A number of the Group’s accounting policies and disclosures
were authorised for issue in accordance with a resolution of
require the measurement of fair value for both financial and
the Board of Directors on 16th May 2019 .
non-financial assets and liabilities.
1.2.4 Basis of Measurement The Company regularly reviews significant unobservable

The Financial Statements have been prepared on accrual inputs and valuation adjustments. If third party information
basis and under the historical cost convention, except for is used to Measure fair values, The Company assesses
financial assets at FVOCI financial liabilities at PNL (FVTPL) the evidence obtained from the third parties to support the
and items of Property, Plant and Equipment, which are conclusion that such valuations meet the requirements of
measured at fair value and Defined Benefit Plans which SLFRSs/LKASs, including the level in the fair value hierarchy in
are measured at present value of the Retirement Benefit which such valuations should be classified .
Obligations as explained in the respective Notes to the
Financial Statements. Further, the external valuers are involved for valuation of
significant assets, such as land and building. Selection criteria
1.2.5 Functional and Presentation Currency for external valuers include market knowledge, reputation,
independence and whether professional standards are
The Financial Statements are presented in Sri Lankan
maintained. The Group decides, after discussions with the
Rupees which is the functional currency of the Company and
external valuers, which valuation techniques and inputs to use
its Subsidiaries.
for individual assets
1.2.6 Use of Estimates and Judgements

Significant valuation issues are reported to the Group’s Audit
The preparation of the Financial Statements in conformity with Committee. When measuring the fair value of an asset or
SLFRSs/LKASs requires management to make judgements, liability, the Group uses observable market data as far as
estimates and assumptions that affect the application of possible. Fair values are categorised into different levels in a
accounting policies and the reported amounts of assets, fair value hierarchy based on the inputs used in the valuation
liabilities, income and expenses. Actual results may differ from techniques as follows:
these estimates.
• Level 1: Quoted prices (unadjusted) in active markets for
identical assets or liabilities
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are • Level 2: Inputs other than quoted prices included in Level
recognised prospectively. 1 that are observable for the asset or liability either directly
(i.e. prices) or indirectly (i.e. derived from prices)
• Level 3: Inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
101 271 187
INFORMATION
If the inputs used to measure the fair value of an asset or • Expected to be realised within twelve months after the
liability fall into different levels of the fair value hierarchy, then reporting period, or
the fair value measurement is categorised in its entirety in the • Cash or cash equivalent unless restricted from being
same level of the fair value hierarchy as the lowest input level exchanged or used to settle a liability for at least twelve
that is significant to the entire measurement. months after the reporting period.
The Group recognises transfers between levels of the fair All other assets are classified as non-current.
value hierarchy at the end of the reporting period during which
the change has occurred. A liability is current when it is:
• It is expected to be settled in the normal operating cycle
1.2.7 Materiality and Aggregation
• It is held primarily for the purpose of trading
Each material class of similar items is presented separately in
• It is due to be settled within twelve months after the
the Consolidated Financial Statements. Items of a dissimilar
reporting period, or
nature or function are presented separately unless they are
immaterial as permitted by the Sri Lanka Accounting Standard • There is no unconditional right to defer the settlement of the
– LKAS 1 on “Presentation of Financial Statements”. liability for at least 12 months after the reporting period.
1.2.8 Going Concern All other liabilities are classified as non-current.
The Directors have made an assessment of the Group’s ability

2.1 Basis of Consolidation
to continue as a going concern in the foreseeable future, and
they do not intend either to liquidate or cease trading. 2.1.1 Subsidiaries
Subsidiaries are entities controlled by the Group. The Group
1.2.9 Comparative Information “controls” an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the
The amounts presented in the Financial Statements are not
ability to affect those returns through its power over the entity.
entirely comparable due to changes of the reporting period.
The Financial Statements of Subsidiaries are included in the
Please refer Note 1 for further clarifications.
Consolidated Financial Statements from the date on which
control commences until the date when control ceases.
2. Significant Accounting Policies
The Company has applied SLFRS 15 and SLFRS 9 from 2.1.2 Non-Controlling Interests (NCI)
1st April 2018. Due to the transition methods chosen by the NCI are measured at their proportionate share of the
Company in applying these standards, comparative information acquiree’s identifiable net assets at the acquisition date.
throughout these Financials Statements has not been restated
to reflect the requirements of the new standards. Changes in the Group’s interest in a Subsidiary that do
not result in a loss of control are accounted for as equity
Except for the above, the accounting policies set out below transactions.
have been applied consistently to all periods presented in
these Financial Statements.
2.1.3 Loss of Control
When the Group losses control over Subsidiary derecognises
Other significant accounting policies not covered with
the assets and liabilities of the Subsidiary, any non-controlling
individual notes.
interests and other components of equity. Any surplus or
Following accounting policies, which have been applied deficit arising on the loss of control is recognised in the profit
consistently by the Group, are considered to be significant but or loss. Any interest retains in the previous Subsidiary, is
not covered in any other sections. measured at fair value as at the date that control is lost.
Current versus non-current classification The Group presents

2.1.4 Interest in Equity Accounted Investees
assets and liabilities in Statement of Financial Position based
on current/non-current classification. The Group’s interest in equity accounted investees comprise
interest in Associate. Associates are those entities in which
An asset is current when it is: the Group has significant influence, but not control or joint
control, over the financial and operating policies. Interests in
• Expected to be realised or intended to be sold or
Associates are accounted for using the equity method. They
consumed in the normal operating cycle
are initially recognised at cost, which include transaction cost.
• Held primarily for the purpose of trading Subsequent to initial recognition the Consolidated Financial
188 5 13 25 35
Statements includes the Group’s share of profit or loss and Increases in the carrying amount on revaluation is recognised
Other Comprehensive Income of equity accounted investees, in other comprehensive income and accumulated in equity
until the date on which significant influence ceases. in the revaluation reserve, unless it reverses a previous
revaluation decrease relating to the same asset, which was
2.1.5 Transactions Eliminated on Consolidation previously recognised as an expense. In these circumstances
the increase is recognised as income to the extent of the
Intra-group balances and transactions, and any unrealised
previous write down.
income and expenses arising from intra-group transactions are
eliminated in preparing the Consolidated Financial Statements.
Decreases in the carrying amount on revaluation that offset
Unrealised gains arising from transactions with equity
previous increases of the same individual asset are charged
accounted investees are eliminated against the investment to
against revaluation reserve directly in equity. All other decreases
the extent of the Group’s interest in the investee. Unrealised
are recognised in profit and loss.
losses are eliminated in the same way as unrealised gains, but
only to the extent that there is no evidence of impairment.
The relevant portion of the revaluation reserve is transferred to
retained earnings as the asset is depreciated with the balance
2.2 Foreign Currency Transactions being transferred on ultimate disposals.
Transactions in foreign currencies are translated into the
respective functional currencies of Group companies at the (c) Subsequent Costs
exchange rates at the dates of the transactions.
The cost of replacing part of an item of Property, Plant and
Equipment is recognised in the carrying amount of the item
Monetary assets and liabilities denominated in foreign
if it is probable that the future economic benefits embodied
currencies at the reporting date are translated into the
within that part will flow to the Group and its cost can be
functional currency at the exchange rate at the reporting
measured reliably. The carrying amount of the replaced part
date. Non-monetary assets and liabilities that are measured
is derecognised. The costs of the day-to-day servicing of
at fair value in a foreign currency are translated into the
Property, Plant and Equipment are recognised in profit and
functional currency at the exchange rate when the fair value
loss as incurred.
was determined. Foreign currency differences are generally
recognised in profit and loss. Non-monetary items that are
measured based on historical cost in a foreign currency are (d) Depreciation
not translated. Depreciation is calculated to write-off the cost of items of
Property, Plant and Equipment less their estimated residual
2.3 Property, Plant and Equipment values using the straight-line method over their estimated
2.3.1 Recognition and Measurement useful lives, and is generally recognised in profit or loss. Land
is not depreciated.
Items of property, plant and equipment are measured at
cost/fair value, less accumulated depreciation and any The estimated useful lives are as follows:
accumulated impairment losses.
Freehold Buildings Over 38 to 50 years
If a significant part of an item of Property, Plant and Equipment
has different useful lives, then they are accounted for as Motor Vehicles Over 5 to 7 years
separate items (major components) of Property, Plant and Furniture and Equipment Over 10 years
Equipment. Any gain or loss on disposal of an item of
Plant and Machinery Over 10 years
Property, Plant and Equipment is recognised in profit or loss.
EDP Equipment Over 5 to 10 years
(a) Cost Model Improvement on Leasehold
The Group applies the cost model to Property, Plant and Premises Over 4 to 10 years
Equipment except for freehold land and buildings. Shop Furniture and Equipment Over 7 years
EDP Equipment – Over 7 years
(b) Revaluation Model
Computer Servers
The Group applies the revaluation model to the entire class
of freehold land and buildings. A revaluation is carried out Depreciation of an asset commences when the asset is
when there is a substantial difference between the fair value available for use and ceases at the earlier of the date the
and the carrying amount of the property, and is undertaken by asset is classified as held-for-sale and the date that the asset
professionally qualified valuers. Group reviews its assets once is derecognised.
in two years.
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INFORMATION
Depreciation methods, useful lives and residual net disposal proceeds and the carrying amount of the
values are reviewed at each financial year end and asset and are recognised in profit and loss when the
adjusted if appropriate. asset is derecognised.
2.3.2 Intangible Assets Intangible assets with indefinite useful lives represent trade
(a) Recognition and Measurement marks purchased and were recorded at cost. These intangible
assets are assessed for impairment annually.
An intangible asset is recognised if it is probable that future
economic benefits will flow to the entity and the cost of the
2.4 Financial Instruments
asset can be measured reliably in accordance with LKAS 38 –
on “Intangible Assets”. Intangible assets with finite useful lives (a) Financial Assets
are measured at cost, less accumulated amortisation and (i) Recognition and Measurement
accumulated impairment losses. A financial instrument is any contract that gives rise to a
financial asset of one entity and financial liability or equity
The useful lives of intangible assets are assessed to be either instrument of another entity.
finite or indefinite.
Receivables and debt securities issued are initially recognised
(b) Subsequent Expenditure when they are originated. All other financial assets and
Subsequent expenditure is capitalised only when it increases financial liabilities are initially recognised when the Group
the future economic benefits embodied in the specific asset becomes a party to the contractual provisions of the
to which it relates. All other expenditure, including expenditure instrument.
on internally generated goodwill and brands are recognised in
profit or loss as incurred. A financial asset (unless it is a trade receivable without
a significant financing component) or financial liability is
initially measured at fair value plus, for an item not at fair
(c) Amortisation
value through profit or loss (FVTPL), transaction costs that
Intangible assets with finite lives are amortised over the useful are directly attributable to its acquisition or issue. A trade
economic life and assessed for impairment whenever there receivable without a significant financing component is initially
is an indication that the intangible asset may be impaired. measured at the transaction price.
The amortisation period and the amortisation method for an
intangible asset with a finite useful life are reviewed at least at
Policy Applicable from 1st April 2018
each financial year-end. Changes in the expected useful life
or the expected pattern of consumption of future economic (ii) Classification and subsequent measurement of
benefits embodied in the asset is accounted for by changing financial assets
the amortisation period or method, as appropriate, and treated On initial recognition, a financial asset is classified as
as changes in accounting estimates. Amortisation expense measured at: amortised cost; fair value through other
on intangible assets with finite lives is recognised in profit and comprehensive income (FVOCI) – debt investment; fair
loss on a straight-line basis over the estimated useful lives, value through other comprehensive income (FVOCI) – equity
from the date they are available for use. investment; or fair value through profit or loss (FVTPL).
The estimated useful lives of intangible assets with finite lives Financial assets are not reclassified subsequent to their initial
are as follows: recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial
The Class of Intangible Assets Useful Life
assets are reclassified on the first day of the first reporting
Computer Software 10 years period following the change in the business model.
Other Intangible Assets

A financial asset is measured at amortised cost if it meets both
Externally Acquired 5 years
of the following conditions and is not designated as at FVTPL:
Intangible assets with indefinite useful lives are tested – it is held within a business model whose objective is to hold
for impairment annually either individually or at the cash- assets to collect contractual cash flows; and
generating unit level. Such intangible assets are not amortised. – its contractual terms give rise on specified dates to cash
flows that are solely payments of principal and interest on
Gains or losses arising from derecognition of an intangible the principal amount outstanding.
asset are measured as the difference between the
190 5 13 25 35
Group financial assets classified and measured at amortised zz the risks that affect the performance of the business model
cost are limited to its Non Current financial Assets – (and the financial assets held within that business model)
Investments in debt instruments ,other receivables, short-term and how those risks are managed;
investments and cash & cash equivalent. zz how managers of the business are compensated - e.g.
A debt investment is measured at FVOCI if it meets both of the whether compensation is based on the fair value of the
following conditions and is not designated as at FVTPL: assets managed or the contractual cash flows collected;
– it is held within a business model whose objective is and
achieved by both collecting contractual cash flows and zz the frequency, volume and timing of sales of financial
selling financial assets; and assets in prior periods, the reasons for such sales and
– its contractual terms give rise on specified dates to cash expectations about future sales activity.
flows that are solely payments of principal and interest on
the principal amount outstanding. Transfers of financial assets to third parties in transactions
that do not qualify for derecognition are not considered sales
The Group has not designated any debt instruments as FVOCI. for this purpose, consistent with the Company’s continuing
recognition of the assets.
On initial recognition of an equity investment that is not
held-for-trading, the Group may irrevocably elect to present Financial assets that are held for trading or are managed and
subsequent changes in the investment’s fair value in OCI. This whose performance is evaluated on a fair value basis are
election is made on an investment-by-investment basis. measured at FVTPL.
These instruments comprise quoted and unquoted shares
that had been previously classified as Available for sale under zz Financial assets – Assessment whether
LKAS 39. contractual cash flows are solely payments of
principal and interest.
All financial assets not classified as measured at amortised For the purposes of this assessment, ‘principal’ is defined
cost or FVOCI as described above are measured at FVTPL. as the fair value of the financial asset on initial recognition.
This includes all derivative financial assets. On initial ‘Interest’ is defined as consideration for the time value of
recognition, the Company may irrevocably designate a money and for the credit risk associated with the principal
financial asset that otherwise meets the requirements to be amount outstanding during a particular period of time and
measured at amortised cost or at FVOCI as at FVTPL if doing for other basic lending risks and costs (e.g. liquidity risk and
so eliminates or significantly reduces an accounting mismatch administrative costs), as well as a profit margin.
that would otherwise arise. In assessing whether the contractual cash flows are solely
payments of principal and interest, the Company considers
The Group has not designated any equity investments as FVTPL. the contractual terms of the instrument. This includes
assessing whether the financial asset contains a contractual
zz Financial assets – Business model assessment term that could change the timing or amount of contractual
The Group makes an assessment of the objective of the cash flows such that it would not meet this condition. In
business model in which a financial asset is held at a portfolio making this assessment, the Company considers:
level because this best reflects the way the business is – contingent events that would change the amount or timing
managed and information is provided to management. The of cash flows;
information considered includes:
– terms that may adjust the contractual coupon rate,
zz the stated policies and objectives for the portfolio and the including variable-rate features;
operation of those policies in practice. These include whether – prepayment and extension features; and
management’s strategy focuses on earning contractual
interest income, maintaining a particular interest rate profile, – terms that limit the Company’s claim to cash flows from
matching the duration of the financial assets to the duration specified assets (e.g. non-recourse features).
of any related liabilities or expected cash outflows or realising
cash flows through the sale of the assets; A prepayment feature is consistent with the solely payments
of principal and interest criterion if the prepayment amount
zz how the performance of the portfolio is evaluated and substantially represents unpaid amounts of principal and
reported to the Group’s management; interest on the principal amount outstanding, which may
include reasonable additional compensation for early
termination of the contract. Additionally, for a financial asset
acquired at a discount or premium to its contractual par
amount, a feature that permits or requires prepayment at
an amount that substantially represents the contractual par
101 271 191
INFORMATION
amount plus accrued (but unpaid) contractual interest (which

may also include reasonable additional compensation for
early termination) is treated as consistent with this criterion
if the fair value of the prepayment feature is insignificant at
initial recognition.
zz Financial assets – Subsequent measurement and

gains and losses
Financial assets at These assets are subsequently measured at fair value. Net gains and losses, including any interest or
FVTPL dividend income, are recognised in profit or loss.
Financial assets at These assets are subsequently measured at amortised cost using the effective interest method. The
amortised cost amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and
impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Debt investments at These assets are subsequently measured at fair value. Interest income calculated using the effective
FVOCI interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other
net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are
reclassified to profit or loss.
Equity investments These assets are subsequently measured at fair value. Dividends are recognised as income in profit or
at FVOCI loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net
gains and losses are recognised in OCI and are never reclassified to profit or loss.
Policy Applicable before 1st April 2018 2.4.1.2 Loans and Receivables
(ii) Classification and subsequent measurement of financial Loans and receivables are financial assets with fixed or
assets (Continued) determinable payments that are not quoted in an active
market. Such assets are recognised initially at fair value plus
At inception, a financial asset is classified in one of the any directly attributable transaction costs.
following categories:
Subsequent to initial recognition loans and receivables are
– Loans and Receivables
measured at amortised cost using the effective interest
– Held-to-Maturity method, less any impairment losses.
– Available-for-Sale
– At Fair Value through Profit or Loss Loans and receivables comprise of hire purchase and lease
receivable, consumer loans, vehicle loans, distress loans
As at the year end the Group did not have assets categorised and temporary refund loans, related party loans, staff loans,
as fair value through profit or loss. deposits with banks, cash and cash equivalents and trade and
other receivables.
2.4.1.1 Held-to-Maturity Financial Assets
2.4.1.3 Available-for-Sale Financial Assets
A non-derivative financial asset with fixed or determinable
payments with fixed maturity where Group intends to hold to Available-for-sale financial assets are non-derivative financial
maturity is classified under this category. assets that are recognised as available-for-sale or not
classified in any previous categories. Available-for-sale
Held-to-maturity financial assets are recognised initially at financial assets are recognised initially at fair value plus any
fair value plus any directly attributable transaction costs. directly attributable transaction costs.
Subsequent to initial recognition held-to-maturity financial
assets are measured at amortised cost using the effective Subsequent to initial recognition, they are measured at fair
interest method. value and changes therein, other than impairment losses,
are recognised in the Other Comprehensive Income and
Held-to-maturity financial assets had comprised of treasury presented in the available-for-sale reserve in equity. When an
bills, treasury bonds and debenture investments. investment is derecognised, the cumulative gain or loss in
Other Comprehensive Income is transferred to profit or loss.
Available-for-sales financial assets comprise equity investments.

192 5 13 25 35
(c) Financial liabilities (iv) Offsetting

Classification, subsequent measurement and gain and losses Financial assets and financial liabilities are offset and the net
amount presented in the statement of financial position when,
Financial liabilities are classified as measured at amortised
and only when, the Group currently has a legally enforceable
cost or FVTPL. A financial liability is classified as at FVTPL if
right to set off the amounts and it intends either to settle them
it is classified as held – for – trading, it is a derivative or it is
on a net basis or to realise the asset and settle the liability
designated as such on initial recognition. Financial liabilities
simultaneously.
at FVTPL are measured at fair value and gains and losses,
including any interest expense, are recognised in profit or
loss. Other financial liabilities are subsequently measured 2.4.2 Non-Derivative Financial Liabilities
at amortised cost using the effective interest method. The Group initially recognises debt securities issued and
Interest expense and foreign exchange gains and losses are subordinated liabilities on the date that they are originated.
recognised in profit or loss. Any gain or loss on derecognition All other liabilities are recognised initially on the trade date
is also recognised in profit or loss. at which the Company becomes a party to the contractual
provisions of the instrument.
(iii) Derecognition
The Group classifies non-derivative financial liabilities into
Financial assets other financial liabilities category. Such financial liabilities are
The Group derecognises a financial asset when the contractual recognised initially at fair value plus any directly attributable
rights to the cash flows from the financial asset expire, or it transaction costs. Subsequent to initial recognition, these
transfers the rights to receive the contractual cash flows in a financial liabilities are measured at amortised cost using the
transaction in which substantially all of the risks and rewards of effective interest method.
ownership of the financial asset are transferred or in which the
Group neither transfers nor retains substantially all of the risks Other financial liabilities comprise interest-bearing borrowings,
and rewards of ownership and it does not retain control of the bank overdrafts, amount due to related parties, security
financial asset. The Group enters into transactions whereby it deposits, trade and other payables and other financial
transfers assets recognised in its statement of financial position, liabilities due to customers.
but retains either all or substantially all of the risks and rewards
of the transferred assets. In these cases, the transferred assets Bank overdrafts that are repayable on demand and form
are not derecognised. an integral part of the Company’s cash management are
included as a component of cash and cash equivalents for the
Financial liabilities Statement of Cash Flows.
The Group derecognises a financial liability when its
contractual obligations are discharged or cancelled, or expire. 2.4.3 Derivative financial instruments
The Company also derecognises a financial liability when its The Group holds derivative financial instruments to hedge its
terms are modified and the cash flows of the modified liability foreign currency and interest rate risk exposures. Embedded
are substantially different, in which case a new financial liability derivatives are separated from the host contract and
based on the modified terms is recognised at fair value. accounted for separately if certain criteria are met.
On derecognition of a financial liability, the difference between Derivatives are initially measured at fair value; any directly
the carrying amount extinguished and the consideration attributable transaction costs are recognised in profit or loss
paid (including any non-cash assets transferred or liabilities as incurred. Subsequent to initial recognition, derivatives are
assumed) is recognised in profit or loss. measured at fair value, and changes therein are generally
recognised in profit or loss.
2.4.4 Stated Capital

Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of ordinary shares are
recognised as a deduction from equity, net of any tax effects.
101 271 193
INFORMATION
2.4.5 Impairment ECLs are discounted at the effective interest rate of the
2.4.5.1 Policy Applicable from 1st April 2018 financial asset.
(a) Financial Assets

zz Credit-impaired financial assets
The Group except for Singer (Finance) PLC recognises loss
At each reporting date, the Group assesses whether financial
allowances for ECLs on:
assets carried at amortised cost and equity investments at
– financial assets measured at amortised cost; FVOCI are credit-impaired. A financial asset is ‘credit-impaired’
– debt investments measured at amortised cost when one or more events that have a detrimental impact on
– equity investments measured at FVOCI the estimated future cash flows of the financial asset have
occurred.
The Group measures loss allowances at an amount equal to
lifetime ECLs, except for the following, which are measured at Evidence that a financial asset is credit-impaired includes the
12-month ECLs: following observable data:
– debt securities that are determined to have low credit risk at – significant financial difficulty of the borrower or issuer;
the reporting date; and – a breach of contract such as a default in payments
– other debt securities and bank balances for which credit – the restructuring of a loan or advance by the Company on
risk (i.e. the risk of default occurring over the expected life terms that the Company would not consider otherwise;
of the financial instrument) has not increased significantly – it is probable that the borrower will enter bankruptcy or other
since initial recognition. financial reorganisation; or
– the disappearance of an active market tor a security
Loss allowances for trade receivables is always measured at
because of financial difficulties.
an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset zz Presentation of allowance for ECL in the
has increased significantly since initial recognition and statement of financial position
when estimating ECLs, the Group considers reasonable and Loss allowances for financial assets measured at amortised cost
supportable information that is relevant and available without are deducted from the gross carrying amount of the assets.
undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on the group’s For debt securities at FVOCI, the loss allowance is charged to
historical experience and informed credit assessment and profit or loss and is recognised in OCI. As at the year end the
including forward-looking information. Group did not have assets categorised as FVOCI.
The Group considers a financial asset to be in default when: zz Write-off

– the borrower is unlikely to pay its credit obligations to the The gross carrying amount of a financial asset is written
Company in full, without recourse by the Company to off when the Group has no reasonable expectations of
actions such as realising security (if any is held); or recovering a financial asset in its entirety or a portion thereof.
For individual customers, the Group has a policy of writing
Lifetime ECLs are the ECLs that result from all possible default off the gross carrying amount based on historical experience
events over the expected life of a financial instrument. of recoveries of similar assets. For corporate customers, the
Company individually makes an assessment with respect to
12-month ECLs are the portion of ECLs that result from the timing and amount of write-off based on whether there is
default events that are possible within the 12 months after the a reasonable expectation of recovery. The Company expects
reporting date (or a shorter period if the expected life of the no significant recovery from the amount written off. However,
instrument is less than 12 months). financial assets that are written off could still be subject to
enforcement activities in order to comply with the Company’s
The maximum period considered when estimating ECLs is procedures to recovery of amounts due.
the maximum contractual period over which the Company is
exposed to credit risk.
zzMeasurement of ECLs
ECLs are a probability-weighted estimate of credit losses.
Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to
the entity in accordance with the contract and the cash flows
that the Company expects to receive).
194 5 13 25 35
Singer Finance (Lanka) PLC – financial guarantee contracts: the expected payments
The Company recognises loss allowances for ECL on the to reimburse the holder less any amounts that the Company
following financial instruments that are not measured at FVTPL: expects to recover.
– financial assets that are debt instruments;
The key inputs used for measurement of ECL is likely to be the
– lease and loan receivables;
term structures of the following variables:
– financial guarantee contracts issued; and
– loan commitments issued. Probability of Default (PD)
PD estimates are estimates at a certain date, which are
No impairment loss is recognised on equity investments.
calculated based on statistical models, and assessed using
various categories based on homogeneous characteristics of
The Company measures loss allowances at an amount equal
exposures. These statistical models are based on internally
to lifetime ECL, except for the following,
compiled data comprising both quantitative and qualitative
factors. The Company forecast PD by incorporating forward
for which they are measured as 12-month ECL:
looking economic variables (unemployment, GDP growth,
– debt investment securities that are determined to have low infation, interest rate and using lag effect of these variables).
credit risk at the reporting date; and
– other financial instruments (other than lease receivables) on Loss Given Default (LGD)
which credit risk has not increased significantly since their
LGD is the magnitude of the likely loss if there is a default.
initial recognition.
The Company estimates LGD parameters based on the history
of recovery rates of claims against defaulted counterparties.
Loss allowances for lease receivables are always measured at
an amount equal to lifetime ECL. The Company considers a Exposure at Default (EAD)
debt investment security to have low credit risk when its credit
EAD represents the expected exposure in the event of a
risk rating is equivalent to the globally understood definition
default. The Company derives the EAD from the current
of ‘investment grade’. The Company does not apply the low
exposure to the counterparty and potential changes to
credit risk exemption to any other financial instruments.
the current amount allowed under the contract including
amortisation. The EAD of a financial asset is its gross carrying
Financial instruments for which a 12-month ECL is recognised
amount.
are referred to as “Stage 1 financial instruments”.
The Company has used these parameters from

Life-time ECL are the ECL that result from all possible default
internally-developed statistical models using historical data.
events over the expected life of the financial instrument.
All inputs were adjusted to reflect forward-looking information
Financial instruments for which a lifetime ECL is recognised
and future economic scenarios.
but which are not credit-impaired are referred to as “Stage 2
financial instruments”.
Impairment losses and releases are accounted for and
disclosed separately from modification losses or gains that are
Measurement of ECL
accounted for as an adjustment of the financial asset’s gross
ECL are a probability-weighted estimate of credit losses. They carrying value.
are measured as follows:
– financial assets that are not credit-impaired at The mechanics of the ECL method are summarised
the reporting date: as the present value of all cash below:
shortfalls (i.e. the difference between the cash flows due • Stage 1: The 12month ECL is calculated as the portion
to the entity in accordance with the contract and the cash of LTECLs that represent the ECLs that result from default
flows that the Company expects to receive); events on a financial instrument that are possible within
– financial assets that are credit-impaired at the the 12 months after the reporting date. The Company
reporting date: as the difference between the gross calculates the12 month ECL allowance based on the
carrying amount and the present value of estimated future expectation of a default occurring in the 12 months
cash flows; following the reporting date. These expected 12-month
– undrawn loan commitments: as the present value of default probabilities are applied to a forecast EAD and
the difference between the contractual cash flows that are multiplied by the expected LGD and discounted by an
due to the Company if the commitment is drawn down and approximation to the original EIR.
the cash flows that the Company expects to receive; an
101 271 195
INFORMATION
• Stage 2: When a loan has shown a significant increase A loan that has been renegotiated due to a deterioration in
in credit risk since origination, the Company records an the borrower’s condition is usually considered to be credit-
allowance for the LTECLs. The mechanics are similar impaired unless there is evidence that the risk of not receiving
to those explained above, including the use of multiple contractual cash flows has reduced significantly and there are
scenarios, but PDs and LGDs are estimated over the no other indicators of impairment. In addition, a retail loan that
lifetime of the instrument. The expected cash shortfalls are is overdue for 180 days or more is considered credit-impaired
discounted by an approximation to the original EIR. even when the regulatory definition of default is different.
• Stage 3: For loans considered credit-impaired the
Company recognises the lifetime expected credit losses. In making an assessment of whether an investment in
The method is similar to that of Stage 2 assets, with the PD sovereign debt is credit-impaired, the Company considers the
set at 100%. following factors.
– The market’s assessment of creditworthiness as reflected in
Restructured financial assets the bond yields.
If the terms of a financial asset are renegotiated or modified – The rating agencies’ assessments of creditworthiness.
or an existing financial asset is replaced with a new one due – The country’s ability to access the capital markets for new
to financial difficulties of the borrower, then an assessment is debt issuance.
made of whether the financial asset should be derecognised – The probability of debt being restructured, resulting in
and ECL are measured as follows. holders suffering losses through voluntary or mandatory
– If the expected restructuring will not result in derecognition debt forgiveness.
of the existing asset, then the expected cash flows arising – The international support mechanisms in place to provide
from the modified financial asset are included in calculating the necessary support as “lender of last resort” to that
the cash shortfalls from the existing asset. country, as well as the intention, reflected in public
– If the expected restructuring will result in derecognition statements, of governments and agencies to use those
of the existing asset, then the expected fair value of mechanisms. This includes an assessment of the depth of
the new asset is treated as the final cash flow from the those mechanisms and, irrespective of the political intent,
existing financial asset at the time of its derecognition. This whether there is the capacity to fulfil the required criteria.
amount is included in calculating the cash shortfalls from
the existing financial asset that are discounted from the
Presentation of allowance for ECL in the statement of financial
expected date of derecognition to the reporting date using
position.
the original effective interest rate of the existing financial asset.
Loss allowances for ECL are presented in the Statement of
Financial Position as follows:
Credit-impaired financial assets
– financial assets measured at amortised cost as a deduction
At each reporting date, the Company assesses whether from the gross carrying amount of the assets;
financial assets carried at amortised cost and debt financial
– loan commitments and financial guarantee contracts:
assets carried at FVOCI, and finance lease receivables are
generally, as a provision;
credit-impaired (referred to as ‘Stage 3 financial assets’).
A financial asset is “credit-impaired” when one or more events – where a financial instrument includes both a drawn and an
that have a detrimental impact on the estimated future cash undrawn component, and the Company cannot identify the
flows of the financial asset have occurred. Evidence that ECL on the loan commitment component separately from
a financial asset is credit-impaired includes the following those on the drawn component: the Company presents
observable data: a combined loss allowance for both components. The
combined amount is presented as a deduction from the
– significant financial difficulty of the borrower or issuer;
gross carrying amount of the drawn component. Any
– a breach of contract such as a default or past due event; excess of the loss allowance over the gross amount of the
– the restructuring of a loan or advance by the Company on drawn components presented as a provision; and
terms that the Company would not consider otherwise; – debt instruments measured at FVOCI. - no loss allowance is
– it is becoming probable that the borrower will enter recognised in the Statement of Financial Position because
bankruptcy or other financial reorganisation; or the carrying amount of these assets is their fair value.
– the disappearance of an active market for a security However, the loss allowance is disclosed and is recognised
because of financial difficulties. in the fair value reserve.
196 5 13 25 35
Write-off Further, higher purchase debtors of Singer (Sri Lanka) PLC are
Loans and debt securities are written off (either partially or in also assessed for impairment at collective level.
full) when there is no reasonable expectation of recovering
a financial asset in its entirety or a portion thereof. This is Losses are recognised in profit or loss and reflected in
generally the case when the Company determines that the an allowance account against loans and receivables. If a
borrower does not have assets or sources of income that subsequent event (e.g. repayment by a debtor) causes
could generate sufficient cash flows to repay the amounts the amount of impairment loss to decrease, the decrease
subject to the write-off. This assessment is carried out at in impairment loss is reversed through profit or loss. When
the individual asset level. Recoveries of amounts previously the Company considers that there is no realistic process of
written off are included in “impairment losses on financial recovery of the asset, the relevant amounts are written off.
instruments” in the statement of profit or loss and OCl.
Impairment losses on assets carried at amortised cost are
Financial assets that are written off could still be subject to measured as the difference between the carrying amount of the
enforcement activities in order to comply with the Company’s financial asset and the present value of estimated future cash
procedures for recovery of amounts due. flows discounted at the asset’s original effective interest rate.
When the Group considers that there are no realistic prospects

Policy Applicable before 1st April 2018
of recovery of the asset, the relevant amounts are written-off.
Impairment of Non-Derivative Financial Assets
Financial assets other than those measured at fair value are Impairment losses are recognised in profit or loss and
assessed for indicators of impairment at the end of each reflected in an allowance account against loans and
reporting period. Financial assets are considered to be advances. When a subsequent event causes the amount of
impaired when there is objective evidence that as a result of impairment loss to decrease, the decrease in impairment loss
one or more events that occurred after the initial recognition of is reversed through profit or loss.
the financial assets, the estimated future cash from the asset
have been affected. (b) Impairment Losses on Available-for-Sale
Impairment losses on available-for-sale investment securities
The Group assesses at each reporting date whether there
are recognised by the reclassifying losses accumulated in
is any objective evidence that a financial asset or a group
the fair value reserve to profit or loss. The amount reclassified
of financial assets are impaired. A financial asset or a group
is the difference between the acquisition cost (net of any
of financial assets are deemed to be impaired if, and only if,
principal repayment and amortisation), and the current fair
there is objective evidence of impairment as a result of one or
value, less any impairment loss previously recognised in profit
more events that have occurred after the initial recognition of
or loss. If the fair value of an impaired available-for-sale debt
the asset and that loss event have an impact on the estimated
security subsequently increases and the increase can be
future cash flows of the financial asset or the group of financial
related objectively to an event occurring after the impairment
assets that can be reliably estimated.
loss was recognised, then the impairment loss is reversed
through profit or loss, otherwise it is reversed through Other
(a) Impairment Losses on Financial Assets Carried at Comprehensive Income.
Amortised Cost
The Group except for Singer Finance (Lanka) PLC (c) Impairment – Equity-Accounted Investees
considers evidence for these assets at individual asset
level. All individually significant assets are individually An impairment in respect of an equity-accounted investee
assessed for impairment. is measured by comparing the recoverable amount of the
investment with its carrying amount. An impairment loss is
Singer Finance (Lanka) PLC considers evidence of impairment recognised in profit or loss, and is reversed if there has been
for receivables at collective level. Loans and receivables are a favourable change in the estimates used to determine the
collectively assessed for impairment by grouping together recoverable amount.
receivables with similar risk characteristics. In assessing
collective impairment, the Company uses historical trends 2.4.5.2 Impairment of Non-Financial Assets
of the probability of default, the timing of recoveries and The carrying amount of the Group’s non-financial assets other
the amount of loss incurred, adjusted for Management’s than inventories and deferred tax assets are reviewed at each
judgements as to whether current economic and credit reporting date to determine whether there is an indication
conditions are such that the actual losses are likely to be of impairment. If any such indication exists or when annual
greater or less than suggested by historical trends. impairment testing for an asset is required, then the asset’s
recoverable amount is estimated.
101 271 197
INFORMATION
For impairment testing, assets are grouped into the smallest Contingent rents are recognised as revenue in the period in
group of assets that generates cash inflows from continuing which they are earned.
use that are largely independent of the cash flows of other
assets or other cash-generating units (CGU). Goodwill 2.4.6.2 Finance Leases
arising from business combination is allocated to CGUs
or groups of CGUs that are expected to benefit from the (a) Finance Leases – Company as a Lessee
synergies of combination. Finance leases that transfer substantially all risks and benefits
incidental to ownership of the leased item to the Company, are
The recoverable amount of an asset or cash-generating unit is capitalised at the commencement of the lease at the fair value
the greater of its value in use and its fair value less costs to sell. of the leased property or, if lower, at the present value of the
In assessing value in use, the estimated future cash flows are minimum lease payments. Lease payments are apportioned
discounted to their present value using a pre-tax discount rate between finance charges and reduction of the lease liability
that reflects current market assessments of the time value of so as to achieve a constant rate of interest on the remaining
money and the risks specific to the asset. In determining fair balance of the liability.
value, less costs to sell, an appropriate valuation model is used.
A leased asset is depreciated over the useful life of the asset.
An impairment loss is recognised if the carrying amount of However, if there is no reasonable certainty that the Company
an asset or cash-generating unit exceeds its estimated will obtain ownership by the end of the lease term, the asset is
recoverable amount. Impairment losses are recognised n profit depreciated over the shorter of the estimated useful life of the
and loss. An impairment loss is reversed if there has been a asset and the lease term.
change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that (b) Finance Leases – Company as a Lessor
the asset’s carrying amount does not exceed the carrying When the Company is the lessor under the finance leases
amount that would have been determined, net of depreciation the amounts due under the finance leases, after deduction of
or amortisation, if no impairment loss had been recognised. unearned charges, are included in “lease rentals receivables”,
as appropriate. The finance income receivable is recognised
2.4.6 Leases in “interest income” over the periods of the leases so as
The determination of whether an arrangement is lease to give a constant rate of return on the net investment
or it contains a lease, is based on the substance of the in the leases.
arrangement and requires an assessment of whether the
fulfilment of the arrangement is dependent on the use of a 2.5 Inventories
specific asset or assets and the arrangement conveys a right Inventories are measured at the lower of cost and net
to use the asset. realisable value, after making due allowances for obsolete
and slow-moving items. Net realisable value (NRV) is the
2.4.6.1 Operating Leases estimated selling price in the ordinary course of business, less
(a) Operating Leases – Company as a Lessee the estimated cost of completion and selling expenses. Group
assess the NRV by giving consideration to future demand and
Leases that do not transfer to the Company substantially
condition of inventory and make adjustments to the value by
all risks and benefits incidental to ownership of the leased
making required provisions.
assets are operating leases. Operating lease payments are
recognised as an expense in the Income Statement on a
The cost of each category of inventory is determined on the
straight-line basis over the lease term. Contingent rental
following basis:
payable is recognised as an expense in the period in which
they are incurred. Raw Materials At actual cost on first-in first-out basis
Finished Goods Weighted average cost
(b) Operating Leases – Company as a Lessor (Excluding Factory)
Leases where the Company does not transfer substantially
Finished Goods and At the cost of direct materials, direct
all risks and benefits of ownership of the asset are classified
Work-in-Progress at labour and an appropriate proportion
as operating leases. Initial direct costs incurred in negotiating
Piliyandala Factory of fixed production overheads, based
operating leases are added to the carrying amount of the
on normal operating capacity
leased asset and recognised over the lease term on the same
basis as rental income. Goods-in-Transit At actual cost
Supplies and Parts Weighted average cost
Repossessed Goods 75% of its weighted average cost
198 5 13 25 35
2.6 Provisions immediately in OCI. The Group determines the net interest
A provision is recognised in the Statement of Financial Position expense on the net defined benefit liability for the period
when the Company has a legal or constructive obligation as by applying the discount rate used to measure the defined
a result of a past event and it is probable that an outflow of benefit obligation at the beginning of the annual period to the
economic benefits will be required to settle the obligation then – net defined liability, taking into account any changes
and the amount of the provision can be measured reliably in the net defined benefit liability during the period as a result
in accordance with LKAS 37 – “Provisions, Contingent of contributions and benefit payments. Net interest expense
Liabilities and Contingent Assets”. The amount recognised is and other expenses related to defined benefit plans are
the best estimate of the consideration required to settle the recognised in profit or loss.
present obligation at the reporting date, taking into account
the risks and uncertainties surrounding the obligation at the The liability is not externally funded.
date. Where a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount 2.7.2 Defined Contribution
is determined based on the present value of those cash flows. Plans – Employees’ Provident Fund/Mercantile Services
Provident Society and Employees’ Trust Fund
2.6.1 Provisions for Warranties A defined contribution plan is a post-employment benefit plan
A provision for warranties is recognised when the underlying under which an entity pays fixed contributions into a separate
products or services are sold. The provision is based on entity and will have no legal or constructive obligation to pay
historical warranty data and a weighing of all possible further amounts. Employees are eligible for contributions to
outcomes against their associated probabilities. Provision is Employees’ Provident Fund/Mercantile Services Provident
utilised to settle the actual claims made by the customers. Society and Employees’ Trust Fund in line with the respective
statutes and regulations. The Company contributes 12%, 12%
2.6.2 Dividend Payables and 3% of gross emoluments of employees to the Employees’
Dividends on ordinary shares are recognised as a liability Provident Fund, Mercantile Services Provident Society and the
and deducted from equity when they are recommended and Employees’ Trust Fund, respectively and is recognised as an
declared by the Board of Directors. expense in profit and loss in the periods during which services
are rendered by employees.
2.6.3 Deposits due to Customers
2.7.3 Short-Term Benefits
These include term deposits and certificates of deposits of
Singer Finance (Lanka ) PLC. Short-term employee benefit obligations are measured on an
undiscounted basis and are expensed as the related service
Subsequent to initial recognition, deposits are measured is provided. A liability is recognised for the amount expected
at their amortised cost using the effective interest method, to be paid under short-term cash bonus if the Group has a
except where the Company designates liabilities at fair value present legal or constructive obligation to pay this amount as
through profit or loss. Interest paid/payable on these deposits a result of past services provided by the employee and the
recognised in profit or loss obligation can be measured reliably.
2.6.3 Capital Commitments and Contingencies 2.8 Statement of Profit or Loss and Other
Comprehensive Income
Capital commitments and contingent liabilities of the Group
are disclosed in the respective Notes, to the Financial 2.8.1 Revenue Recognition
Statements. The Group has initially applied SLFRS 15- “Revenue from
Contracts with Customers” from 1st April 2018.
2.7 Employee Benefits
Performance obligations and revenue recognition policies
2.7.1 Defined Benefit Plan
The Group net obligation in respect of defined benefit plan SLFRS 15 establishes a comprehensive framework for
is calculated by estimating the amount of future benefits determining whether, how much and when revenue is
that employees have earned in current and prior periods recognised.
discounting that amount.
As per the standard, revenue is measured based on the
The calculation of defined benefit obligation is performed consolidation specified in a contact with a customer. The Group
annually by a qualified actuary using the projected unit credit recognises revenue when it transfers control over a good or
method. Remeasurement of the net defined benefit liability, service to a customer. Determining the timing of the transfer of
which comprise actuarial gains and losses are recognised control at a point in time or over time require judgment.
101 271 199
INFORMATION
2.8.1.1 Disaggregation of Revenue The company’s contracts with customers are in similar
SLFRS 15 requires an entity to disaggregate revenue nature and revenue from these contracts are not significantly
recognised from contracts with customers into categories affected by economic factors apart from the product and
that depict how the nature, amount, timing and uncertainty service categories. The Company believes objective of this
of revenue and cash flows are affected by economic factors. requirement will be met by using two type of category – timing
of revenue and type of goods and services (Note 3.b. ii).
Type of product/service Nature and timing of satisfaction Revenue recognition under Revenue recognition under LKAS 18
of performance obligations, SLFRS 15 (applicable from 1st April 2018) (applicable prior to 1st April 2018)
including significant payment
terms
Sale of Goods Company sells goods to Revenue is recognised when the goods Revenue from sale of goods is
(Normal Trading the customers on cash or are delivered to the customers. recognised when the significant
Transactions) credit basis. At the time of risks and rewards of ownership
delivery of the goods to the of the goods have passed to the
customers, Company meets customers.
its performance obligation.
Sale of Goods Company sells its products to Revenue is recognised when the At the time of effecting hire
(Hire Purchase its customers by entering into goods are delivered to the customers. sales the cash sales value is
Transactions) Hire Purchase Agreements. Transaction price is estimated by recognised as sales.
At the time of delivery of the adjusting the consideration for the time
goods to the customers, value of money. As the HP agreements
Company meets its are based on market interest rates
performance obligations. the cash price and the adjusted
consideration has no significant
difference.
Sale of Goods The Company sells goods At the time of delivering the goods At the time of delivering the
(Consignment to the customers though to the end-customers, the revenue is goods to the end-customers, the
Arrangements) consignment arrangements recognised. revenue is recognised.
with third parties. At the time
of delivering the goods to the
end-customers, the Company
meets its performance
obligations.
Extended Warranty Company provides extended The extended warranty fee income (net A portion of extended warranty
Income warranty for certain products of taxes) is recognised over the period fee income is recognised upfront
by charging additional of contact. Unrecognised income is to the revenue based on the pre-
consideration from the accounted for as deferred revenue. determined rate. Unrecognised
client. The Company meets income is accounted for as
its performance obligations deferred revenue.
over the period of extended
warranty.
Income on Suraksha When the Company sells Revenue is recognised over the period Revenue is recognised over
& Service Fees goods under hire purchases, of hire purchase contact using effective the period of hire purchase
an additional fee is charged interest rate. Unrecognised income is contact using effective interest
as Suraksha and service accounted for as unearned income. rate. Unrecognised income
fee. This fee is calculated is accounted for as unearned
based on the value of the income.
product. The Company meets
its performance obligations
over period of hire purchase
contact.
200 5 13 25 35
Type of product/service Nature and timing of satisfaction Revenue recognition under Revenue recognition under LKAS 18
of performance obligations, SLFRS 15 (applicable from 1st April 2018) (applicable prior to 1st April 2018)
including significant payment
terms
Revenue on The Company provides Revenue is deferred at the time of Revenue recognised at the point
Customer Loyalty loyalty points where they earning the loyalty points based in the of redeeming the points.
Programme could redeem such points for expected redemption rate. Based on
future purchases. the actual redemptions the revenue is
recognised.
Installation fee The Company provides Based on the stage of completion, Based on the stage of
charged on AC AC installation services to installation fee is charged as revenue. completion, installation fee is
products the customers at the time charged as revenue.
of selling the AC products.
The Company meets its
performance obligations
over period of AC Installation
contacts.
2.8.2 Revenue Recognition Policy of Singer Finance PLC (d) Net Gain/(Loss) from Trading
(a) Hire Purchase, Lease , Loans and Advances Net gain/(loss) from trading’ comprise gains less losses
related to trading assets and liabilities, and include all realised
The excess of aggregated contract receivables over the cost
and unrealised fair value changes and dividends.
of the hired assets constitutes the total unearned income at
the commencement of a contract. The unearned income is
recognised as revenue as it is earned , using the effective 2.8.3 Regulatory Provisions
interest rate method. (a) Deposit Insurance Scheme
In terms of the Finance Companies Direction No. 2 of
(b) Interest 2010 “Insurance of Deposit Liabilities” issued on
Interest income and expense are recognised in profit or loss 27th September 2010 all Registered Finance Companies
using the Effective Interest Rate (EIR) method. The EIR is the are required to insure their deposit liabilities in the Deposit
rate that exactly discounts the estimated future cash payments Insurance Scheme operated by the Monetary Board in terms
and receipts through the expected life of the financial asset or of Sri Lanka Deposit Insurance Scheme Regulations No. 1 of
liability (or, where appropriate, a shorter period) to the carrying 2010 issued under Sections 32A to 32E of the Monetary Law
amount of the financial asset or liability. When calculating the Act with effect from 1st October 2010.
EIR, the Company estimates future cash flows considering
all contractual terms of the financial instrument, but not future Deposits to be insured include demand, time and savings
credit losses. deposit liabilities and exclude the following.
zz Deposit liabilities to member institutions
The calculation of the EIR includes transaction costs and fees
and points paid or received that are an integral part of the EIR. zz Deposit liabilities to Government of Sri Lanka
Transaction costs include incremental costs that are directly zz Deposit liabilities to shareholders, directors, key
attributable to the acquisition or issue of a financial asset or management personnel and other related parties as defined
financial liability. in Finance Companies Act Direction No. 03 of 2008 on
Corporate Governance of Registered Finance Companies
Interest income and expense presented in the Income zz Deposit liabilities held as collateral against any
Statement include:
accommodation granted
Interest on financial assets and financial liabilities measured
at amortised cost calculated using EIR method; Over Due zz Deposit liabilities falling within the meaning of dormant
Interest have been accounted for on a cash received basis. deposits in terms of the Finance Companies Act, funds of
which have been transferred to Central Bank of Sri Lanka
(c) Fees and Commission Income and Expense Registered Finance Companies are required to pay a
premium of 0.15% on eligible deposit liabilities as at end of
Fees and commission income and expense that are integral
the month to be payable within a period of 15 days from the
to the EIR on a financial asset or liability are included in the
end of the respective month.
measurement of the EIR. Other fees and commission income
are recognised as the related services are performed.
101 271 201
INFORMATION
(b) Debt Securities Issued and Subordinated Term Debts (a) Current Tax
These represent the funds borrowed by the Company for The current tax is the expected tax payable on the taxable
long-term funding requirements. Subsequent to initial income for the year, using tax rates enacted or substantially
recognition debt securities issued are measured at their enacted at the reporting date, and any adjustment to tax
amortised cost using the effective interest method, except payable in respect of previous years.
where the Company designates debt securities issued at
fair value through profit or loss. Interest paid/payable is (b) Deferred Taxation
recognised in profit or loss.
Deferred tax is recognised in respect of temporary differences
between the carrying amount of assets and liabilities for
2.8.4 Reserve Fund financial reporting purposes and the amounts used for taxation
Singer Finance (Lanka) PLC is maintaining a reserve fund purposes.
in compliance with Direction No. 01 of 2003 – Central Bank
(Capital Funds) issued to Finance Companies and it will be Deferred tax is measured at the tax rates that are expected to
used for only the purpose specified in the said Direction above. be applied to temporary differences when they reverse, based
The details of the reserve fund are disclosed in Note 23.1. on tax laws that have been enacted or substantively enacted
by the reporting date.
2.8.5 Expenditure Recognition
A deferred tax asset is recognised for unused tax losses
(a) Expenses are recognised in Profit and Loss on the basis
and deductible temporary differences, to the extent that it is
of a direct association between the cost incurred and the
probable that future taxable profits will be available against
earning of specific items of income. All expenditure incurred
which they can be utilised. The carrying amount of deferred
in the running of the business and in maintaining the Property,
tax assets is reviewed at each reporting date and is reduced
Plant and Equipment in a state of efficiency has been charged
to the extent that it is no longer probable that the related tax
to income in arriving at the profit for the year.
benefit will be realised.
(b) For the purpose of presentation of the Income Statement,
Deferred tax assets and liabilities are offset if there is a legally
the Directors are of the opinion that “function of expenses
enforceable right to offset deferred tax assets and liabilities
method” presents fairly the elements of the Company’s
and when the deferred tax relates to income tax levied on the
performance and hence such presentation method is adopted.
same tax authority on the same taxable entity or on different
tax entity but then intends to settle relevant tax liabilities and
2.8.6 Net Finance Cost assets on a net basis or their tax assets and liabilities will be
Finance income comprises interest income on funds invested simultaneously realised.
interest income from related parties and which is recognised as it
accrues in profit or loss, using the effective interest rate method. Tax withheld on dividend income from Subsidiaries and
Associates is recognised as an expense in the Consolidated
Finance cost comprises interest payable on borrowings, Income Statement at the same time as the liability to pay the
interest on security deposits. Borrowing costs that are related dividend is recognised.
not directly attributable to the acquisition, construction or
production of a qualifying asset are recognised in profit or loss (c) Value Added Tax (VAT) on Financial Services
using the effective interest method.
VAT on Financial Services is calculated in accordance with the
amended Value Added Tax (Amendment) Act, No. 20 of 2016.
Foreign currency gains and losses are reported on a net
The base for the computation of Value Added Tax ion Financial
basis as either finance income or finance cost depending on
Services is the accounting profit before income tax adjusted
whether foreign currency movements are in net gain or net
for the economic depreciation and emolument of employees
loss position.
computed on prescribed rate.
2.8.7 Income Tax

(d) Nation Building Tax on Financial Services (NBT)
Income tax expense comprises both current and deferred tax.
With effect from 1st January 2014, NBT of 2% was introduced
Income tax expense is recognised in profit and loss, except to
on supply of financial services via an amendment to the NBT
the extent that it relates to items recognised directly in equity,
Act No. 09 of 2009. NBT is chargeable on the same base
or in Other Comprehensive Income.
used for calculation of VAT on Financial services as explained
in notes to the Financial Statements.
202 5 13 25 35
(e) Crop Insurance Levy Segment information is presented in the respective Notes to
As per the provisions of the Section 14 of the Finance Act the Financial Statements.
No. 12 of 2013, the CIL was introduced with effect from April
01, 2013 and is payable to the National Insurance Trust Fund. 2.12 Statement of Cash Flows
Currently, the CIL is payable at 1% of the profit after tax. The Cash Flow Statement has been prepared using the
indirect method.
(f) Debt Repayment Levy (DRL)
As per the Finance Act No. 35 of 2018, with effect from 2.13 Changes in Accounting Policy
1st October 2018, DRL of 7% was introduced on the value The Company has applied SLFRS 15 (refer sub note A) and
addition attributable to the supply of financial services by each SLFRS 9 (refer sub note B) from 1st April 2018.A number of
financial institution. DRL is chargeable on the same base used other new standards are also effective from 1st April 2018
for calculation of VAT on financial services as explained in but they do not have material impact on companies financial
Note 3.16 above. statements due to the transition methods chosen by the
Group in applying these standards, comparative information
(g) Withholding Tax on Dividends Distributed by the Company throughout these financial statements has not been restated to
Withholding tax that arises from the distribution of dividends by reflect the requirements of the new standards.
the Company is recognised at the time the liability to pay the
related dividend is recognised. A. SLFRS 15 Revenue from Contracts with Customers
SLFRS 15 establishes a comprehensive framework for
2.9 Events After the Reporting Period determining whether, how much and when revenue is
All material events after the reporting date have been recognised. It replaced LKAS 18 Revenue, LKAS 11 Construction
considered and where necessary adjustments made in these contracts and related interpretations. Under SLFRS 15, revenue
Financial Statements. is recognised when a customer obtains control of the goods or
services. Determining the timing of the transfer control-at a point
in time or over time- requires judgment.
2.10 Earnings Per Share
The Group presents basic Earnings Per Share (EPS) for its The Company has adopted SLFRS 15 using the cumulative effect
ordinary shares. Basic EPS is calculated by dividing the Profit method (without practical expedients), with the effect of initially
or Loss attributable to ordinary shareholders of the Company applying this standard recognised at the date of initial application
by the weighted number of ordinary shares outstanding during (i.e. 1st April 2018). Accordingly, the information presented for
the period. 2017 has not been restated – i.e. it is presented, as previously
reported, under LKAS 18, and related interpretations, additionally,
2.11 Segment Reporting the disclosures requirements in SLFRS 15 have not generally
An operating segment is a component of the Company been applied to comparative information.
that engages in business activities from which it may earn
revenues and incur expenses, including revenues and The effect of initially applying these standards is mainly
expenses that relate to transactions with any of the Company’s attributes to the following,
other components. All operating results are reviewed regularly zz Earlier recognition of revenue from extended warranties
by the Group Chief Executive Officer to make decisions
regarding resources to be allocated to the segments and
zz Earlier recognition of revenue from option to purchase
to assess its performance and for which discrete finance additional goods
information is available.
Segment results that are reported to the Group CEO include

items directly attributable to a segment as well as those that
can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during

the period to acquire Property, Plant and Equipment and
intangible assets other than goodwill.
101 271 203
INFORMATION
The following table summarises the impact net of tax of transition to SLFRS 15 on retained earnings Group/Company as at 1st April 2018.
Group Company
Retained Earnings Impact of adopting Impact of adopting
SLFRS 15 as at SLFRS 15 as at
1st April 2018 1st April 2018
Rs. Rs.
On over the time recognition of Extended Warranty 169,198,605 169,198,605

Impact on over the time recognition of Loyalty 57,420,784 57,420,784
(Less) Related Tax (38,540,820) (38,540,820)
Total Impact on Retained Earnings as at 1st April 2018 188,078,569 188,078,569
The following tables summarise the impact of adopting SLFRS 15 on the Group/Company’s Statement of Financial Position
as at 31st March 2019 and its Profit or Loss for the year then ended for each line item affected.
Impact on Consolidated statement of financial position

Amounts without Adjustment As Reported
adoption of
SLFRS 15
Rs. Rs.
31st March 2019

Assets
Deferred Tax Assets – 57,905,549 57,905,549
Other Assets – – 57,984,444,907
Total assets 57,926,539,359 – 58,042,350,466
Revenue reserves 5,210,729,482 (174,898,866) 5,035,830,616
Non-controlling interest 1,508,546,318 – 1,508,546,318
Others 1,907,267,831 – 1,907,267,831
Equity 8,626,543,631 – 8,451,643,766
Other Non-Current Liabilities – 143,126,349 143,126,349
Others 4,037,916,677 – 4,037,916,677
Non-Current Liabilities 4,181,043,026 – 4,181,043,026
Trade Payables 7,257,359,014 63,679,183 7,321,038,197
Deferred Revenue 186,536,023 1,508,714 188,044,737
Tax Liability – 24,490,169 24,490,169
Others 27,853,709,603 – 27,853,709,603
Current Liabilities 28,188,644,067 – 35,409,663,665
Total Equity, Minority Interest and Liabilities 57,926,539,359 – 58,042,350,466
204 5 13 25 35
Impact on Company statement of financial position

Amounts without\ Adjustment As Reported
adoption of
SLFRS 15
Rs. Rs.
31st March 2019

Assets
Deferred Tax Assets – 57,905,549 57,905,549
Other Assets – – 37,045,583,249
Total Assets 37,045,583,249 – 37,103,488,798
Revenue reserves 3,026,500,012 (174,898,866) 2,851,601,146
Others 1,784,381,091 – 1,784,381,091
Equity 4,810,881,103 – 4,635,982,237
Other Non-Current Liabilities – 143,126,349 143,126,349
Others 9,422,743,613 – 9,422,743,613
Non-Current Liabilities 9,422,743,613 – 9,565,869,962
Trade Payables 5,050,496,541 63,679,183 5,114,175,724
Deferred Revenue 181,026,045 1,508,714 182,534,759
Tax Liability – 24,490,169 24,490,169
Others 17,580,435,947 – 17,580,435,947
Current Liabilities 22,896,677,791 – 22,901,636,599
Total equity, minority interest and Liabilities 37,045,583,249 – 37,103,488,798
Impact on consolidated statement of Profit or Loss

adoption of SLFRS 15
SLFRS 15
Rs. Rs.
For the year ended 31st March 2019

Revenue 58,310,926,027 194,469,213 58,505,395,240
Cost of sales (41,070,805,367) 69,159,745 (41,139,965,112)
Direct Interest Cost (1,265,014,488) – (1,265,014,488)
Gross Profit 16,100,415,639 – 16,100,415,639
Other Income 445,066,015 (107,004,324) 338,061,691
Total Administration and Selling Expense (12,441,116,410) – (12,441,116,410)
Others (3,325,231,809) – (3,325,231,809)
Income tax expenses (281,023,088) 5,125,440 (286,148,528)
Profit for the period 498,110,347 – 385,980,583
101 271 205
INFORMATION
Impact on Company Statement of Profit or Loss

adoption of SLFRS 15
SLFRS 15
Rs. Rs.
For the year ended 31st March 2019

Revenue 43,423,420,216 194,469,213 43,617,889,429
Cost of sales (31,251,532,745) 69,159,745 (31,320,692,490)
Gross Profit 12,171,887,471 – 12,297,196,939
Other Income 697,070,960 (107,004,324) 590,066,636
Total Administration and Selling Expense (10,446,394,702) – (10,446,394,702)
Others (2,352,155,586) – (2,352,155,586)
Income tax expenses 56,962,592 5,125,440 51,837,152
Profit for the period 127,370,735 – 140,550,439
Key Changes to the Accounting Policies on the Adoption of IFRS 15

Under IFRS 15, revenue is recognised when a customer obtains control of the goods or services. Determination of the timing of
the transfer of control at a point or over time requires judgements.
The details of the new significant accounting policies and the nature of the changes to previous accounting policies in relation to
the Company’s various goods and services are set out below:
Type of product/service New revenue/cost criteria Change from previous accounting policy
Extended Warranty The extended warranty fee income (net of taxes) The Company has recognised the full warranty
Income is recognised over the period of extended income as revenue over the period of extended
warranty. Unrecognised income is accounted for warranty without recognising a portion of
as deferred revenue. revenue upfront.
Revenue on Customer Revenue is deferred at the time of earning the Revenue is deferred at the time of earning
Loyalty Programme loyalty points based in the expected redemption the loyalty points based in the expected
rate. Based on the actual redemptions the redemption rate.
revenue is recognised.
B. SLFRS 9 Financial Instruments

SLFRS 9 set out requirements for recognised and measuring financial assets, financial liabilities and some contracts to buy or
sell non-financial items. This standard replaces LKAS 39 Financial Instruments: Recognition and Measurement. As a result of
the adoption of SLFRS 9, the Group has adopted consequential amendments to LKAS 1 Presentation of Financial Instruments,
which require impairment of financial assets to be presented in separate line item in the statement of profit or loss and OCI.
The Company has adopted consequential amendments to SLFRS 7 Financial Instruments: Disclosures that are applied to
disclosures about 2019 but have not been generally applied to comparative information.
SLFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, FVOCI and FVTPL.
The classification of financial assets under SLFRS 9 is generally based on the business model in which a financial asset is
managed and its contractual cash flow characteristics. SLFRS 9 eliminates the previous LKAS 39 categories of held to maturity,
loans and receivables and available for sale. SLFRS 9 largely retains the existing requirements in LKAS 39 for the classification
and measurement of financial liabilities.
206 5 13 25 35
The Company has used an exemption not to restate comparative information for prior periods with respect to classification and
measurement (including impairment) requirements. Differences in the carrying amounts of financial assets resulting from the
adoption of SLFRS 9 are recognised in retained earnings as at 1st April 2018. Accordingly, the information presented for 2017/18
does not generally reflect the requirements of SLFRS 9, but rather those of LKAS 39.
The following assessments have been made on the basis of the facts and circumstances that existed at the date of initial
application.
zz The determination of the business model within which a financial asset is held.
zz The designation and revocation of previous designations of certain financial assets and financial liabilities as measured at
FVTPL.
zz The designation of certain investments in equity instruments not held for trading as at FVOCI.
zz If an investment in a debt security had low credit risk at the date of initial application of SLFRS 9, then the Group has assumed
that the credit risk on the asset had not increased significantly since its initial recognition.
Accordingly, the following table summarises the impact, net of tax, of transition to SLFRS 9 on the opening balance of reserves,
retained earnings and NCI as at 1st April 2018.
Group Company
Impact on adoption Impact on adoption
of SLFRS 9 on of SLFRS 9 on
opening balances opening balances
Rs. Rs.
(Reversal)/Charge of Impairment allowance on expected credit losses recognised under SLFRS 9 5,495,477,725 3,326,088,413
– Trade and other receivables (360,394,885) (248,222,744)
Related Tax (76,440,870) (68,900,890)
As at 1st April 2018 retained earnings after SLFRS 9 adjustment only 5,058,641,970 3,008,964,779
Non-Controlling interest as at 1st April 2018 1,349,113,963 –
(Reversal)/Charge of Impairment allowance on expected credit losses recognised under SLFRS 9 –
– Trade and other receivables (21,946,844) –
Related Tax – –
As at 1st April 2018 Non-Controlling interest after SLFRS 9 adjustment only 1,327,167 –
Group
Original classification New classification Original carrying New carrying
Under LKAS 39 under SLFRS 9 amount under amount under
LKAS 39 SLFRS 9
Rs. ’000 Rs. ’000
Financial Assets
Investments in Non Quoted equity Available For Sale Fair Value through OCI 17,061,300 17,061,300
HP receivables Loans and Receivables Amortised Cost 7,534,792,738 7,507,269,105
Lease Receivables Loans and Receivables Amortised Cost 11,383,225,323 11,344,294,699
Loan Receivables Loans and Receivables Amortised Cost 2,900,362,916 2,830,777,250
Loan Receivables Loans and Receivables Amortised Cost 788,000 788,000
Trade debtors Loans and Receivables Amortised Cost 5,361,912,649 5,134,999,363
Other Debtors Loans and Receivables Amortised Cost 1,673,053,244 1,673,053,244
Cash and Cash equivalents Loans and Receivables Amortised Cost 1,339,006,740 1,339,006,740
Total financial assets 30,210,202,910 29,847,249,701
101 271 207
INFORMATION

LKAS 39 SLFRS 9
Rs. ’000 Rs. ’000
Financial Liabilities
Trade and Other Payables Amortised Cost Amortised Cost 8,112,971,679 8,112,971,679
Derivatives Financial Liability FVTPL FVTPL 8,337,510 8,337,510
Debentures Amortised Cost Amortised Cost 6,983,551,005 6,983,551,005
Bank Loans Amortised Cost Amortised Cost 16,418,864,972 16,418,864,972
Bank Overdraft Amortised Cost Amortised Cost 2,132,691,242 2,132,691,242
Amount Due to Related Party Amortised Cost Amortised Cost 389,037,813 389,037,813
Dividend Payable Amortised Cost Amortised Cost 220,838,973 220,838,973
Total financial liabilities 34,266,293,194 34,266,293,194
Company
LKAS 39 SLFRS 9
Rs. ’000 Rs. ’000
Financial assets
Investments in Non Quoted equity Available For Sale Fair Value through OCI 17,020,000 17,020,000
Investments in Debentures Held to Maturity Amortised Cost 912,090,000 911,272,652
Related Party Loans Loans and Receivables Amortised Cost 1,219,150,767 1,217,819,977
HP receivables Loans and Receivables Amortised Cost 7,451,947,830 7,425,246,259
Amount due from Related Party Loans and Receivables Amortised Cost 185,396,027 185,396,027
Trade debtors Loans and Receivables Amortised Cost 3,979,170,189 3,795,796,884
Other Debtors Loans and Receivables Amortised Cost 1,208,065,613 1,208,065,613
Cash and Cash equivalents Loans and Receivables Amortised Cost 1,017,627,946 1,017,627,946
Total financial assets 15,990,468,372 15,742,245,628
Financial liabilities
Trade and Other Payables Amortised Cost Amortised Cost 6,003,703,094 6,003,703,094
Derivatives Financial Liability FVTPL FVTPL 8,337,510 8,337,510
Debentures Amortised Cost Amortised Cost 4,991,435,763 4,991,435,763
Bank Loans Amortised Cost Amortised Cost 11,707,742,249 11,707,742,249
Bank Overdraft Amortised Cost Amortised Cost 1,237,088,725 1,237,088,725
Amount Due to Related Party Amortised Cost Amortised Cost 3,012,216,978 3,012,216,978
Dividend Payable Amortised Cost Amortised Cost 166,754,628 166,754,628
Total financial liabilities 27,127,278,947 27,127,278,947
SLFRS 9 replaces the “incurred loss” model in LKAS 39 with an “expected credit loss” (ELC) model. The new impairment model
applies to financial assets measured at amortised cost, contract assets and debt investment at Amortised cost,
For assets in scope of the SLFRS 9 impairment model, impairment losses are generally expected to increase and become more
volatile. The Company has determined that the application of SLFRS 9’s impairment requirements at 1st April 2018 results in an
additional allowances for impairment as follows.
208 5 13 25 35
The following table reconcile the carrying amounts of financial assets under LKAS 39 to the carrying amounts under SLFRS 9 on
transition on 1st April 2018 Group.
LKAS 39 Reclassification Remeasurement SLFRS 9
Carrying amounts Carrying amounts
at 31st march 2018 at 31st march 2019
Rs. Rs.
Financial assets
Amortised cost
Trade and other receivable
Brought forward: trade receivables 5,361,912,649
Remeasurement (246,301,807)
Carried forward: amortised cost 5,115,610,842

Brought forward: Hire purchases 7,534,792,738

Brought forward: Loan debtors 2,900,362,916

Brought forward: lease receivable 11,383,225,323
Total Amortised cost 27,180,293,626 (382,341,279) 26,797,952,347
The following table reconcile the carrying amounts of financial assets under LKAS 39 to the carrying amounts under SLFRS 9 on
transition on 1st April 2018 Company.

at 31st March 2018 at 31st march 2019
Rs. Rs. Rs. Rs.
Financial assets
Amortised cost
Brought forward: trade receivables 3,979,170,189
Brought forward: Hire purchases 7,451,947,830
101 271 209
INFORMATION

at 31st March 2018 at 31st march 2019
Rs. Rs. Rs. Rs.

Brought forward: related party 1,219,150,767
Remeasurement (1,330,790 )
Debenture
Brought forward: Debenture 912,090,000
Remeasurement (817,348)
Carried forward: amortised cost 911,272,652
Total Amortised cost 13,562,358,786 (248,222,744) 13,314,136,042
2.14 Standards issued but not yet effective

(A) SLFRS 16 Leases Effective Date – 1st January 2019
SLFRS 16 sets out the principles for the recognition, IFRIC 23 Uncertainty over Tax Treatments.
measurement, presentation and disclosure of leases and
– Prepayment features with negative compensation
requires lessees to account for all leases under a single
(Amendments to SLFRS 9).
on-balance sheet model similar to the accounting for finance
leases under LKAS – 17. The objective is to ensure that – Long-term interests in Associates and Joint Ventures
lessees and lessors provide relevant information in a manner (Amendments to LKAS 28).
that faithfully represents those transactions. The information – Plan Amendment, Curtailment or settlement
gives a basis for the users of Financial Statements to assess (Amendment to LKAS 19).
the effect that leases have on the financial position. – Annual Improvements to SLFRS Standards 2015-2017
Cycle- various standards.
SLFRS 16 is effective for annual reporting periods beginning
– Annual Improvements to SLFRS 3-Business combinations,
on or after 1st January 2019, with early adoption permitted.
SLFRS 11 – Joint Arrangements, LKAS12 Income Taxes.
The Group is assessing the potential impact on its
consolidated Financial Statements resulting from the Effective Date – 1st January 2020
application of SLFRS 16. – Amendments to References to Conceptual Framework in
SLFRS standards
(B) Other standards – Amendments to LKAS 1 and LKAS 8
The following amended standards and the interpretations – Amendments to SLFRS 3
are not expected to have a significant impact on the Group’s
– Effective Date – 1st January 2022
consolidated financial statements.
210 5 13 25 35
3. Revenue
The effect of initially applying SLFRS 15 on the Group’s revenue from the contracts with customers is described in Note 2.13 Due
to the cumulative effect method chosen in applying SLFRS 15, comparative information has not been restated to reflect the new
requirements.

(a) Revenue Streams
Group generates revenue primarily from the sale of consumer electronic, home appliance, mobile phones, personal computer,
laptops, furnitures, domestic and industrial sewing machines, agricultural equipment and provide services of financing through
hire purchases, leasing, gold loans etc. (See Note 1.13 in Policies) to its customers.
Rs. Rs. Rs. Rs.
Revenue from Contracts with customers 58,505,395,240 65,122,304,522 43,617,889,429 50,910,032,892

Total Revenue 58,505,395,240 65,122,304,522 43,617,889,429 50,910,032,892
3.1 Revenue from Contracts with Customers

Sale of Goods 51,191,440,621 57,084,528,259 40,103,798,429 46,530,148,517
Rendering of Services (Note 3.2) 7,313,954,619 8,037,776,263 3,514,091,000 4,379,884,375
58,505,395,240 65,122,304,522 43,617,889,429 50,910,032,892
3.2 Rendering of Services

Interest Income on Hire Purchase 2,787,475,281 3,589,628,519 2,780,170,190 3,533,706,112
Interest Income on Leasing 2,630,826,396 2,500,541,881 – –
Interest Income on Loans 837,927,774 785,572,115 – –
Service Income 1,057,725,168 1,162,033,748 733,920,810 846,178,263
7,313,954,619 8,037,776,263 3,514,091,000 4,379,884,375
(b) Disaggregation of revenue from contract with customers

In the following table, revenue from contracts with customers is disaggregated by major products, service lines and timing of
revenue recognition.
(i) Major Products/Service Lines For twelve For fifteen For twelve For fifteen
Rs. Rs. Rs. Rs.
Consumer Electronics 6,482,904,635 8,210,121,000 6,480,471,000 8,210,121,000

Financial Services 7,313,954,619 8,037,776,263 3,514,091,000 4,379,884,375
Furniture 2,681,806,000 3,416,843,000 2,681,806,000 3,416,843,000
Home Appliances 17,202,756,000 19,785,509,468 17,196,056,000 19,774,100,000
IT products 19,461,519,686 18,524,320,790 8,383,589,429 7,971,414,000
Sewing 2,585,372,000 3,615,763,000 2,585,372,000 3,615,762,517
Other 2,777,082,300 3,531,971,000 2,776,504,000 3,541,908,000
Revenue from contract with customers 58,505,395,240 65,122,304,522 43,617,889,429 50,910,032,892
101 271 211
INFORMATION
(ii) Timing of Revenue Recognition For twelve For fifteen For twelve For fifteen
Rs. Rs. Rs. Rs.
Products transferred at a point in time 51,477,248,203 57,400,383,744 40,065,801,653 46,530,148,517

Products and Services transferred Over Time 7,028,147,037 7,721,920,778 3,552,087,776 4,379,884,375
Revenue from Contracts with Customers 58,505,395,240 65,122,304,522 43,617,889,429 50,910,032,892
(c) Contract Balances

Following table provides information about receivables, contract liabilities from contracts with customers.
Rs. Rs. Rs. Rs.
Receivables which are included in “trade and other

receivables” 528,961,365 226,607,130 212,806,334 137,147,305
Contract Liabilities (Note 29.1)* 36,921,881 19,638,343 36,921,881 19,638,343
*Contract Liabilities primarily relate to the advance consideration received from customers for Air Conditioning installation projects, for which revenue is recognised
over time.
4. Operating Segment Information

4.1 Segment Products and Services
Consumer Electronics Televisions, Audios, DVD and Other Electronic Products

Financial Services Leasing, Hire Purchase and Loans
Furniture Wood and Layered Furniture, Sofa Sets, Steel Furniture and Mattresses
Home Appliances Refrigerators, Washing Machines, Deep Freezers, Bottle Coolers, Air Conditioners, Fans,
Small Appliances and Kitchen Ranges
IT Products Laptops, mobile and Smart Phones
Sewing Domestic and Industrial Sewing Machines and General Merchandise
Other Motor Bikes, Bicycles, Water Pumps, Paddy Threshers and Tractors
212 5 13 25 35
4.2 Segmental Analysis of Revenue is as follows:

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Consumer Electronics 6,482,905 8,210,121 6,480,471 8,210,121

Financial Services 7,313,954 8,037,776 3,514,091 4,379,884
Furniture 2,681,806 3,416,843 2,681,806 3,416,843
Home Appliances 17,202,756 19,785,509 17,196,056 19,774,100
IT Products 19,461,520 18,524,322 8,383,589 7,971,414
Sewing 2,585,372 3,615,763 2,585,372 3,615,763
Other 2,777,082 3,531,971 2,776,504 3,541,908
58,505,395 65,122,305 43,617,889 50,910,033
4.3 Segmental Analysis of Profit Before Tax is as follows:

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Consumer Electronics 477,627 376,366 345,016 370,412

Financial Services 1,847,124 2,093,507 602,802 767,812
Furniture 133,296 127,445 115,396 125,432
Home Appliances 997,565 1,240,300 751,790 858,837
IT Products 839,225 1,078,101 154,857 114,025
Sewing 135,028 158,142 119,240 160,020
Other 103,998 132,982 87,904 125,402
Dividend – 180 462,621 923,614
Gain on Sale of Shares in Subsidiary (Note 5) – – 14,050 –
Impairment Loss on Trade Receivables (Note 5) (521,421) (367,607) (212,806) (137,147)
Operating Profit 3,997,361 4,839,416 2,440,869 3,308,406
Net Finance Cost (3,033,076) (2,531,375) (2,320,956) (2,149,727)
VAT on Financial Services (292,156) (258,989) (31,200) (52,800)
Profit Before Tax 672,129 2,049,052 88,713 1,105,879
4.4 There are no separately distinguishable assets and liabilities for the above segments.
101 271 213
INFORMATION
5. Other Income
Rs. Rs. Rs. Rs.
Dividend Income – Quoted – – 198,601,207 509,613,843

– Unquoted 206,400 180,000 264,020,000 414,000,000
Gain/(Loss) on Disposal of Property Plant & Equipment (279,943) (10,851,256) (483,591) (11,220,725)
Gain on Sale of Shares in Subsidiary Company (Note 5.1) – – 14,049,303 –
Miscellaneous Income 259,479,830 281,899,877 35,250,696 87,008,428
Income from Financial Services 78,655,404 89,029,554 78,629,021 89,029,554
338,061,691 360,258,175 590,066,636 1,088,431,100
5.1 Gain on Sale of Shares in Subsidiary Company

On 31st August 2018, the Company disposed 2,754,174 shares of its subsidiary Singer Finance (Lanka) PLC (1.36%) to general
public for a consideration of Rs. 38.3 million, which has resulted in diluting its ownership of Company from 81.29% to 79.93%.
6. Finance Income
Rs. Rs. Rs. Rs.
Interest Income – Related Parties – – 387,330,579 273,523,543

– Others 83,820,431 123,584,230 22,711,282 25,926,776
Unwinding Interest Income on Interest Free
Employee Loans 51,530,147 46,067,134 43,864,782 45,147,730
Foreign Exchange Gain 72,320,101 5,898,356 – –
207,670,679 175,549,720 453,906,643 344,598,049
214 5 13 25 35
7. Finance Cost
Rs. Rs. Rs. Rs.
Interest on Overdrafts and Loans (2,834,533,161) (2,515,226,927) (2,345,567,628) (2,261,875,743)

Interest on Security Deposits (148,317,161) (168,619,531) (146,162,296) (168,619,532)
Foreign Exchange Loss (257,896,055) (23,078,214) (11,964,773) (21,561,543)
Interest Expense on Related Party Payables – – (271,167,532) (42,268,333)
(3,240,746,377) (2,706,924,672) (2,774,862,229) (2,494,325,151)
Net Finance Cost* (3,033,075,698) (2,531,374,952) (2,320,955,586) (2,149,727,102)
* Finance Cost (Note 7) Less Finance Income (Note 6).
8. Profit Before Tax

Rs. Rs. Rs. Rs.
Stated After Charging all Expenses Including

the Following:
Executive Directors’ Emoluments 108,140,247 197,578,515 72,346,480 136,714,404
Non-Executive Directors’ Fees 16,918,890 16,676,920 8,522,000 8,306,800
Auditors’ Remuneration – Statutory Audit 5,725,000 4,510,000 2,100,000 2,100,000
– Audit-Related Services 525,000 4,250,000 – 990,000
– Non-Audit Services 375,000 640,000 – –
Impairment on Trade and Other Receivables (Note 8.1) 783,159,310 652,643,612 474,683,286 422,183,788
Impairment of Inventories (Note 16.1) 172,995,327 15,211,882 174,028,852 44,233,025
Software Impairment (Note 12.2) – 5,605,554 – –
Amortisation of Intangible Assets (Note 12.8) 21,698,455 31,694,467 11,947,021 22,343,871
Depreciation on Property, Plant and Equipment
(Note 11.2/11.11) 579,242,530 632,735,522 453,474,284 509,249,151
Personnel Costs (Note 8.2) 6,114,251,526 7,100,184,259 4,924,654,157 5,832,223,437
Operating Lease Rentals 1,155,691,416 1,253,040,814 683,045,000 1,191,322,880
Donations 466,250 763,465 360,000 335,220
Royalty 649,952,432 611,084,317 484,717,794 513,552,753
101 271 215
INFORMATION
Rs. Rs. Rs. Rs.
8.1 Impairment on Trade and Other Receivables

Impairment for Hire Purchase Receivables (Note 18.3) 14,854,732 22,044,710 17,380,351 33,294,359
Impairment for Lease Receivables (Note 18.3) 143,871,915 68,944,048 – –
Impairment for Loan Debtors (Note 18.3) 140,642,025 156,665,425 – –
Impairment for Trade Debtor (Note 18.3) 222,052,712 119,952,947 195,425,983 103,852,947
Impairment Loss on Trade Receivables 521,421,384 367,607,130 212,806,334 137,147,306
Impairment for Other Debtors (Note 18.3) 261,737,926 285,036,482 261,876,952 285,036,482
783,159,310 652,643,612 474,683,286 422,183,788
8.2 Personnel Costs

Rs. Rs. Rs. Rs.
Staff Costs 5,506,018,143 6,320,971,861 4,435,268,258 5,175,603,185

Provision for Employee Benefit Obligations 144,669,128 161,489,696 103,310,278 114,418,462
Defined Contribution Plan Costs – EPF, ETF and MSPS 463,564,254 617,722,702 386,075,621 542,201,790
6,114,251,526 7,100,184,259 4,924,654,157 5,832,223,437
9. Income Tax Expense

Rs. Rs. Rs. Rs.
Current Income Tax Expense

Current Tax Expense (Note 9.1) 477,606,668 614,776,454 143,238,137 224,296,133
Under/(Over) Provision in Respect of
Previous Year (Note 31) 104,474,835 20,055,084 12,102,703 359,716
Tax on Dividend Income

WHT on Dividend Received from Subsidiary Companies 69,992,896 112,358,820 – –
652,074,399 747,190,358 155,340,840 224,655,849
Deferred Tax
Expense/(Income) (Note 9.2) (365,925,870) 81,567,175 (207,177,991) (117,800,290)
286,148,529 828,757,533 (51,837,151) 106,855,559
216 5 13 25 35
9.1 Reconciliation Between Accounting Profit and Taxable Profit

Rs. Rs. Rs. Rs.
Profit Before Tax 672,129,112 2,049,052,146 88,713,288 1,105,878,833

Aggregate Accounting Profit 672,129,112 2,049,052,146 88,713,288 1,105,878,833
Aggregate Disallowable Expenses 7,587,638,573 8,373,267,670 1,318,882,157 1,347,270,689
Aggregate Tax Deductible Expenses (6,570,053,369) (8,191,887,563) (896,030,671) (728,478,061)
Income Not Liable for Tax – – – (923,613,843)
Tax Losses B/f 12,637,687 24,825,242 – –
Adj: Tax Loss Claimed During the Period (12,637,687) (14,694,244) – –
Tax Loss Carried Forward 13,860,390 12,637,687 – –
Qualifying Payments Relief for Investments – (1,997,909) – –
Unrealised Profit 2,163,404 (23,849,698) – –
1,705,738,100 2,227,353,331 511,564,774 801,057,618
Taxable Profit 20% – 111,030,990 – –
Taxable Profit 28% 1,705,738,100 2,116,322,341 511,564,774 801,057,618
1,705,738,100 22,227,353,331 511,564,774 801,057,618
Current Income Tax 20% – 22,206,198 – –
Current Income Tax 28% 477,606,668 592,570,256 143,238,137 224,296,133
Current Income Tax 477,606,668 614,776,454 143,238,137 224,296,133
The Group tax expense is based on the taxable profit of each company in the Group. Singer (Sri Lanka) PLC and six subsidiary
companies – Singer Finance (Lanka) PLC, Regnis (Lanka) PLC, Singer Industries (Ceylon) PLC, Reality (Lanka) Limited, Singer
Digital Media (Pvt) Limited and Singer Business School (Pvt) Limited are liable to pay Income Tax at 28% on taxable profit and
Regnis Appliances (Pvt) Limited is liable at a rate of 20%.
The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many
factors, including interpretations of tax law and prior experience.
9.2 Deferred Tax Expense/(Income)

Rs. Rs. Rs. Rs.
Deferred Tax Charge/(Credit) Arising due to –

Origination and Reversal of Temporary
Differences (Note 26.1) (356,631,694) 82,215,026 (200,985,408) (110,059,561)
Deferred Tax Impact on Unrealised Profit in
Inventory (Note 26.1) 190,793 7,092,878 – –
Deferred Tax Impact on Realisation of Revaluation
Surplus (Note 26.1) (9,484,969) (7,740,729) (6,192,583) (7,740,729)
(365,925,870) 81,567,175 (207,177,991) (117,800,290)
101 271 217
INFORMATION
9.3 Deferred Tax has been computed using the enacted tax rates of 28% and 20% applicable for the entities in the Group.
9.4 Tax Recognised in Other Comprehensive Income

For twelve months ended 31st March 2019 For fifteen months ended 31st March 2018
Before Tax Tax Expense Net of Tax Before Tax Tax Expense Net of Tax
Group
Revaluation Gain on Property, Plant
and Equipment 882,824,365 (247,190,822) 635,633,543 – (516,049,055) (516,049,055)
Actuarial Gain/(Loss) on Employee
Benefit Obligations (Note 27) (21,158,221) 5,871,651 (15,286,570) (18,910,000) 6,319,485 (12,590,515)
861,666,144 (241,319,171) 620,346,973 (18,910,000) (509,729,570) (528,639,570)
Company
Revaluation Gain on Property, Plant
and Equipment (Note 22.1) 453,751,963 (127,050,550) 326,701,413 – (198,082,001) (198,082,001)
Actuarial Gain/(Loss) on Employee
Benefit Obligations (Note 27) (26,947,676) 7,545,349 (19,402,327) (9,478,416) 2,653,957 (6,824,459)
426,804,287 (119,505,201) 307,299,086 (9,478,416) (195,428,044) (204,906,460)
10. Earnings Per Share

10.1 Basic Earnings Per Share is calculated by dividing the profit for the period attributable to the ordinary equity holders of the
parent by the weighted average number of ordinary shares outstanding during the period.
10.2 The following reflects the income and share data used in the Basic Earnings per Share computations:
For fifteen For twelve For fifteen For twelve
Rs. Rs. Rs. Rs.
Profit Attributable to Ordinary Equity Holders

of the Parent
Profit for the Period (Rs.) 385,980,583 1,220,294,613 140,550,439 999,023,274
Profit Attributable to Ordinary Equity Holders of the
Parent (Rs.) 250,121,091 1,043,682,205 140,550,439 999,023,274
Weighted Average Number of

Ordinary Shares
Weighted Average Number of Ordinary Shares 375,628,830 375,628,830 375,628,830 375,628,830
Basic Earnings per Share (Rs.) 0.67 2.78 0.37 2.66
218 5 13 25 35
11. Property, Plant and Equipment

11.1 Gross Carrying Amounts – Consolidated
Balance as at Additions/ Increase/(Decrease) Disposals/ Balance as at
1st April 2018 Transfers in Revaluation Transfers 31st March 2019
Rs. Rs. Rs. Rs. Rs.
At Cost
Motor Vehicles 312,700,081 30,958,330 – 77,989,546 265,668,865
Furniture and Equipment 342,260,204 59,887,400 – 1,201,483 400,946,121
Plant and Machinery 1,132,946,964 339,947,672 – 4,801,670 1,468,092,965
Culinary School Equipment 75,814 – – – 75,814
E.D.P. Equipment 460,745,984 90,907,738 – 7,927,321 543,726,401
Shop Furniture 658,284,574 50,879,138 – – 709,163,712
Shop Equipment 996,799,353 151,342,786 – – 1,148,142,139
Improvements on Leasehold Premises 930,078,677 116,557,941 – – 1,046,636,618
4,833,891,651 840,480,394 – 91,920,020 5,582,452,636
At Valuation
Freehold Land 2,297,611,701 – 606,566,750 – 2,904,178,451
Freehold Buildings 1,030,693,329 75,006,193 276,257,615 100,224,444 1,281,732,693
3,328,305,030 75,006,193 882,824,365 100,224,444 4,185,911,144
Gross Carrying Amount
Excluding Capital WIP 8,162,196,681 915,486,587 882,824,365 192,144,464 9,768,363,780
Capital Work-In-Progress
Machinery and Equipment 136,611,420 82,674,298 – 213,485,434 5,800,284
Improvements on Leasehold Premises 2,267,202 25,206,043 – 7,931,912 19,541,333
Total Capital Work-in-Progress 138,878,622 107,880,341 – 221,417,346 25,341,617
Total Gross Carrying Amount 8,301,075,303 1,023,366,928 882,824,365 413,561,810 9,793,705,397
11.2 Depreciation and Impairment Losses – Consolidated

Balance as at Charge for the Disposals Balance as at
1st April 2018 Year 31st March 2019
Rs. Rs. Rs. Rs.
Freehold Buildings 65,572,166 42,300,544 100,224,446 7,648,264

Motor Vehicles 152,163,236 25,466,155 28,509,594 149,119,797
Furniture and Equipment 234,663,907 24,985,266 1,149,148 258,500,025
Plant and Machinery 578,126,684 89,443,423 4,271,103 663,299,004
Culinary School Equipment 75,814 – – 75,814
E.D.P. Equipment 276,522,024 51,531,814 7,683,098 320,370,741
Shop Furniture 354,573,820 89,662,572 – 444,236,392
Shop Equipment 449,390,749 142,768,808 – 592,159,557
Improvements on Leasehold Premises 540,563,259 113,083,947 – 653,647,206
Total Depreciation and Impairment Loss 2,651,651,659 579,242,530 141,837,390 3,089,056,800
101 271 219
INFORMATION
11.3 Carrying Amounts

Group
As at As at
Rs. Rs.
At Cost 2,518,736,842 2,386,690,780

At Valuation 4,185,911,755 3,262,732,864
Total Carrying Amount of Property, Plant and Equipment 6,704,648,597 5,649,423,644
11.4 Prior year Error Correction on Singer Industries (Ceylon) PLC Property Valuation
Due to an oversight Company has not revalued its building to reflect its value in its financial statements over the years.
The building is brought in to financial statements by obtaining a value through an independent professionally qualified valuer.
Accordingly building was valued at Rs. 68 million and was incorporated as part of Buildings under Property Plant and Equipment
through retained earnings. Due to the impracticability of determining the specific effects of the error on comparative information
for one or more prior periods presented no restatement of prior year financial statements has been made.
Rs.
Fair Value as at 31st March 2019 68,650,000

Deferred Tax relating to Revaluation (19,222,000)
Net Impact on retained Earnings as at 31st March 2019 49,428,000
11.5 During the financial year, the Group acquired Property, Plant and Equipment to the aggregate value of Rs. 733,580,136/-
(2017/2018 – Rs. 887,107,521/-) on cash basis.
11.6 Lands and Buildings were revalued during the financial year 2018/19 by Messrs Chulananda Wellappili, an Independent
Valuer who holds degrees of B.Sc State Management and Valuation, M.Sc Town and Country planning and PG. Dip. in Regional
Planning. Further he is a Graduate Member of Institute of Valuers of Sri Lanka, A member of Institute of Town and Country
Planning Sri Lanka, Senior certified valuer of international Real Estate Institute of USA. A Corporate Member of the Institute of
Revenues, Rating and Valuations of UK. The results of such revaluation were incorporated in these Financial Statements from its
effective date which is 31st March 2019. The surplus arising from the revaluation was transferred to a revaluation reserve.
11.7 The carrying amount of the revalued assets that would have been included in the Financial Statements had the assets been
carried at cost would be as follows:
Carrying Amount
Rs.
Land 112,593,796
Building 337,602,186
Total Carrying Amount 450,195,982
11.8 The amount of the Property, Plant and Equipment includes fully-depreciated assets value would be as follows:
As at As at
Rs. Rs.
Fully Depreciated Assets 1,319,162,323 1,031,206,991

220 5 13 25 35
11.9 Depreciation charge for the year is included in the following line items in the Statement of Profit or Loss and Other
Comprehensive Income:
For twelve For fifteen

months ended months ended
Rs. Rs.
Cost of Sales 125,378,081 124,148,542

Administration Expenses 453,864,449 508,586,980
579,242,530 632,735,522
11.10 Gross Carrying Amounts – Company

Balance as at Additions/ Increase/ Disposals/Transfers Balance as at
1st April 2018 Transfers (Decrease) in 31st March 2019
Revaluation
Rs. Rs. Rs. Rs. Rs.
At Cost
Motor Vehicles 285,341,588 30,958,330 – 67,809,546 248,490,372
Furniture and Equipment 260,667,140 10,369,307 – – 271,036,447
Plant and Machinery 306,098,212 84,765,872 – – 390,864,084
Culinary School Equipment 75,814 – – – 75,814
E.D.P. Equipment 352,913,798 73,441,896 – 150,549 426,205,145
Shop Furniture 658,284,574 50,879,138 – – 709,163,712
Shop Equipment 996,799,354 151,342,786 – – 1,148,142,140
Improvements on Leasehold Premises 799,006,950 54,745,326 – – 853,752,276
3,659,187,430 456,502,655 – 67,960,095 4,047,729,990
At Valuation
Freehold Land 810,774,200 – 284,984,250 – 1,095,758,450
Freehold Buildings 654,640,626 2,873,637 168,767,713 61,928,953 764,353,023
1,465,414,826 2,873,637 453,751,963 61,928,953 1,860,111,473
Total Gross Carrying Amount 5,124,602,256 459,376,292 453,751,963 129,889,048 5,907,841,463
101 271 221
INFORMATION
11.11 Depreciation and Impairment Losses – Company

Balance as at Charge for the Disposals Balance as at
1st April 2018 Year 31st March 2019
Rs. Rs. Rs. Rs.
Freehold Buildings 34,483,985 27,444,968 61,928,953 –

Motor Vehicles 135,073,701 16,801,858 23,718,046 128,157,513
Furniture and Equipment 194,476,799 22,095,529 – 216,572,328
Plant and Machinery 200,686,289 21,784,279 – 222,470,568
Culinary School Equipment 75,814 – – 75,814
E.D.P. Equipment 211,161,448 37,519,680 11,655 248,669,473
Shop Furniture 354,573,819 89,662,572 – 444,236,391
Shop Equipment 449,390,751 142,768,808 – 592,159,559
Improvements on Leasehold Premises 462,082,088 95,396,590 – 557,478,678
Total Depreciation and Impairment Losses 2,042,004,694 453,474,284 85,658,654 2,409,820,324
11.12 Carrying Amounts

As at As at
Rs. Rs.
At Cost 1,637,909,664 1,651,666,721

At Valuation 1,860,111,475 1,430,930,841
Total Carrying Amount of Property, Plant and Equipment 3,498,021,139 3,082,597,562
11.13 During the financial year, the Company acquired Property, Plant and Equipment to the aggregate value of
Rs. 459,376,292/- (2017/2018 – Rs. 600,451,154/-) on cash basis.
11.14 Lands and Buildings were revalued during the financial year 2018/19 by Messrs Chulananda Wellappili, an Independent
Valuer. who holds degrees of B.Sc State Management and Valuation, M.Sc Town and Country Planning and PG. Dip. in Regional
Planning. Further he is a Graduate Member of Institute of Valuers of Sri Lanka, A member of Institute of Town and Country
Planning Sri Lanka, Senior certified Valuer of international Real Estate Institute of USA. A corporate member of Institute of
Revenues, Rating and Valuations of UK. The results of such revaluation were incorporated in these Financial Statements from its
effective date which is 31st March 2019. Such assets were valued on contractors method for existing use basis. The surplus
arising from the revaluation was transferred to a revaluation reserve.
11.15 The carrying amount of the revalued assets that would have been included in the Financial Statements had the assets
been carried at cost would be as follows:
Carrying Amount
Rs.
Land 100,851,000
Building 268,429,761
Total carrying amount 369,280,761
222 5 13 25 35
11.16 The amount of the property, plant and equipment includes fully depreciated assets value would be as follows:
As at As at
Rs. Rs.
Fully Depreciated Assets 1,008,975,247 771,566,098
11.17 Depreciation charge for the year is included in the following line items in the Statement of Profit or Loss.
For twelve months For fifteen months

ended 31st March ended 31st March
2019 2018
Rs. Rs.
Cost of Sales 38,361,507 39,135,949

Administration Expenses 415,112,777 470,113,202
453,474,284 509,249,151
11.18 Information on the Freehold Land and Buildings of the Group

Location Extent Buildings Cost or Cost or Total Value
(Perches) (Square Revaluation of Revaluation of
Feet) Land Buildings
Rs. Rs. Rs.
Attidiya
No. 190, Main Road, Attidiya, Dehiwala 6.2 2260 18,600,000 9,153,000 27,753,000
Ahangama
No. 24A, Matara Road, Ahangama 14 1630 25,200,000 6,825,875 32,025,875
Ambalantota
Main Street, Ambalantota 6.6 1885 16,500,000 5,278,000 21,778,000
Ambanpola
No. 108, Yaluwewa, Ambanpola. 10 – 2,000,000 – 2,000,000
Balangoda
Ratnapura Road, Balangoda 6.2 2080 20,150,000 7,722,000 27,872,000
Bandarawela
Main Street, Bandarawela 4.1 2660 10,250,000 11,510,000 21,760,000
Borella
D.S. Senanayaka Mawatha, Borella 4.64 2310 69,600,000 9,240,000 78,840,000
Chilaw
Bazaar Street, Chilaw 13.05 4120 42,412,500 15,656,000 58,068,500
Colpetty
No. 143, Galle Road, Colombo 03 3.35 1440 56,950,000 6,156,000 63,106,000
Eheliyagoda
Ratnapura Road, Eheliyagoda 5.73 1660 11,460,000 4,316,000 15,776,000
Embilipitiya
Colombo Road, Pallegama, Embilipitiya 4.6 2070 16,100,000 7,917,750 24,017,750
Galle
Main Street, Galle 2.84 2250 11,360,000 9,112,500 20,472,500
Galle
No. 13 and 15, Wackwella Road, Galle 12 – 54,000,000 – 54,000,000
Gampaha
Colombo Road, Gampaha 17.87 7870 62,545,000 30,220,800 92,765,800
101 271 223
INFORMATION

Rs. Rs. Rs.
Hikkaduwa
Galle Road, Hikkaduwa 8.74 2400 24,035,000 8,160,000 32,195,000
Kadawatha
Kandy Road, Kadawatha 3.8 1150 8,250,000 11,980,000 20,230,000
Kadawatha
No. 430/1, Ganemulla Road, Ihala-Karagahamuna,
Kadawatha 4.38 – 10,425,000 – 10,425,000
Kalawana
No. J63A, Watapotha Road, Nivithigala, Ratnapura 258.66 – 7,000,000 – 7,000,000
Kandy
No. 129, Kotugodella Veediya, Kandy 9.55 2900 42,975,000 6,960,000 49,935,000
Kandy – Mega
Sirimavo Bandaranaike Mawatha, Kandy 15.7 12840 36,715,000 69,336,000 106,051,000
Katugastota
Madawala Road, Katugastota 4.875 1620 10,106,250 6,743,250 16,849,500
Kirindiwela
Gampaha Road, Kirindiwela 8.1 2940 20,250,000 9,922,500 30,172,500
Kurunegala
Bodhiraja Mawatha, Kurunegala 7.66 2810 26,810,000 10,010,625 36,820,625
Maharagama
High Level Road, Maharagama 6.2 2700 37,200,000 10,800,000 48,000,000
Maradana
No. 51/57, Brandiyawatta, Wellampitiya 10 – 3,500,000 – 3,500,000
Matara
Anagarika Dharmapala Mawatha, Matara 10 3520 37,800,000 14,520,000 52,320,000
Middeniya
Katuwana Road, Middeniya 8.25 2670 14,850,000 8,624,100 23,474,100
Moratuwa
No. 17, New Galle Road, Moratuwa 13.09 2990 39,270,000 5,793,000 45,063,000
Mount Lavinia
Galle Road, Mount Lavinia 7.5 1900 33,750,000 7,445,625 41,195,625
Mount Lavinia – Mega
Nawalapitiya
Kotmale Road, Nawalapitiya 4.7 2760 12,704,700 7,176,000 19,880,700
Negombo
Greens Road, Negombo 6 2040 24,000,000 6,885,000 30,885,000
Nuwara Eliya
Kandy Street, Nuwara Eliya 4.65 1700 18,600,000 6,375,000 24,975,000
Panadura
Galle Road, Panadura 6.15 2940 18,450,000 10,584,000 29,034,000
Piliyandala
Gonamaditta Road, Piliyandala 1,144.35 118450 228,870,000 342,566,563 571,436,563
Pussellawa
Nuwara Eliya Road, Pussellawa 12.43 3295 24,860,000 11,553,094 36,413,094
224 5 13 25 35

Rs. Rs. Rs.
Ratnapura
Colombo Road, Ratnapura 5.8 3075 20,300,000 11,685,000 31,985,000
Ratmalana
No. 52, Ferry Road, Off Borupana Road, Ratmalana 705 120615 423,000,000 257,097,795 680,097,795
Ratmalana
No. 02, 5th Lane, Ratmalana 362.5 75365 952,100,000 162,900,000 1,115,000,000
Ratmalana
No. 435, Galle Raod, Ratmalana 50 – 226,350,000 68,650,000 295,000,000
Tangalle
Matara Road, Tangalle 4.6 1285 13,800,000 3,822,875 17,622,875
Trincomalee
North Coast Road, Trincomalee 5.58 2335 19,530,000 9,007,874 28,537,874
Trincomalee
Nayanmarthidal, Thampalakamam, Trincomalee 60 – 4,000,000 – 4,000,000
Wellawatta
Galle Road, Wellawatta 4.6 2700 55,200,000 7,020,000 62,220,000
2,904,178,451 1,281,732,693 4,185,911,114
11.19 Information on the Freehold Land and Buildings of the Company

Rs. Rs. Rs.
Ambalantota
Main Street, Ambalantota 6.6 1885 16,500,000 5,278,000 21,778,000
Balangoda
Ratnapura Road, Balangoda 6.2 2080 20,150,000 7,722,000 27,872,000
Bandarawela
Main Street, Bandarawela 4.1 2660 10,250,000 11,510,000 21,760,000
Borella
D.S. Senanayaka Mawatha, Borella 4.64 2310 69,600,000 9,240,000 78,840,000
Chilaw
Bazaar Street, Chilaw 13.05 4120 42,412,500 15,656,000 58,068,500
Colpetty
No. 143, Galle Road, Colombo 03 3.35 1440 56,950,000 6,156,000 63,106,000
Eheliyagoda
Ratnapura Road, Eheliyagoda 5.73 1660 11,460,000 4,316,000 15,776,000
Galle
Main Street, Galle 2.84 2250 11,360,000 9,112,500 20,472,500
Gampaha
Colombo Road, Gampaha 17.87 7870 62,545,000 30,220,800 92,765,800
Hikkaduwa
Galle Road, Hikkaduwa 8.74 2400 24,035,000 8,160,000 32,195,000
Embilipitiya
Colombo Road, Pallegama, Embilipitiya 4.6 2070 16,100,000 7,917,750 24,017,750
101 271 225
INFORMATION

Rs. Rs. Rs.
Kadawatha
Kandy Road, Kadawatha 3.8 1150 8,250,000 11,980,000 20,230,000
Kandy – Mega
Sirimavo Bandaranaike Mawatha, Kandy 15.7 12840 36,715,000 69,336,000 106,051,000
Katugastota
Madawala Road, Katugastota 4.875 1620 10,106,250 6,743,250 16,849,500
Kirindiwela
Gampaha Road, Kirindiwela 8.1 2940 20,250,000 9,922,500 30,172,500
Kurunegala
Bodhiraja Mawatha, Kurunegala 7.66 2810 26,810,000 10,010,625 36,820,625
Maharagama
High Level Road, Maharagama 6.2 2700 37,200,000 10,800,000 48,000,000
Matara
Anagarika Dharmapala Mawatha, Matara 10 3520 37,800,000 14,520,000 52,320,000
Middeniya
Katuwana Road, Middeniya 8.25 2670 14,850,000 8,624,100 23,474,100
Mount Lavinia
Mount Lavinia – Mega
Nawalapitiya
Kotmale Road, Nawalapitiya 4.7 2760 12,704,700 7,176,000 19,880,700
Negombo
Greens Road, Negombo 6 2040 24,000,000 6,885,000 30,885,000
Nuwara Eliya
Kandy Street, Nuwara Eliya 4.65 1700 18,600,000 6,375,000 24,975,000
Panadura
Galle Road, Panadura 6.15 2940 18,450,000 10,584,000 29,034,000
Piliyandala
Gonamaditta Road, Piliyandala 1144.35 118450 228,870,000 342,566,563 571,436,563
Pussellawa
Nuwara Eliya Road, Pussellawa 12.43 3295 24,860,000 11,553,094 36,413,094
Ratnapura
Colombo Road, Ratnapura 5.8 3075 20,300,000 11,685,000 31,985,000
Tangalle
Matara Road, Tangalle 4.6 1285 13,800,000 3,822,875 17,622,875
Trincomalee
North Coast Road, Trincomalee 5.58 2335 19,530,000 9,007,875 28,537,875
Wellawatta
Galle Road, Wellawatta 4.6 2700 55,200,000 7,020,000 62,220,000
1,095,758,450 764,353,023 1,860,111,473
226 5 13 25 35
11.20 Measurement of Fair Value

(i) Fair Value Hierarchy
The fair value of property was determined by external independent property valuer having appropriate recognized professional
qualifications and recent experience in the location and category of the property being valued.
The fair value measurement for all of properties has been categorized as level 3 fair value based on the input to the valuation
technique used.
(ii) Valuation Technique and Significant Unobservable Inputs

The following table shows the valuation technique used in measuring the fair value of property, as well as the significant
unobservable inputs used.
Valuation Technique Significant Unobservable Inputs Interrelationship between Key Unobservable

Inputs and Fair Value Measurements
Land value is based on the market prices zz Market value of land (Price per The Estimated fair value would
of each land respectively. Value of property Perch). Valuer has used range of increase (decrease) if –
is considered as summation of land & prices for respective lands based zz Market Value per perch was higher
Building value. on their recently transacted cost. (lower)
Contractors Method: The contractor’s method zz Construction cost per Square feet zz Cost per square feet was higher
works on the basis that a property’s value can of a building. (lower)
be equated to its cost. Valuer assess the cost zz Depreciation rate for the usage zz Depreciation rate for usage lower
of the building if it would have constructed in of assets. (higher)
current year, and deduct margin for usage of the
property based on their year of construction.
12. Intangible Assets

As at As at As at As at
Rs. Rs. Rs. Rs.
Trade Mark (Note 12.1) 93,512,500 93,512,500 93,512,500 93,512,500

Software (Note 12.2) 128,351,748 141,372,571 61,056,468 67,200,884
Other Intangible Assets Externally Acquired (Note 12.3) 46,431,920 46,431,920 46,431,920 46,431,920
268,296,168 281,316,991 201,000,888 207,145,304
12.1 Trade Mark with Infinite Useful Life

Rs. Rs. Rs. Rs.
Cost
As at the Beginning of the Period 93,512,500 93,512,500 93,512,500 93,512,500
As at the End of the Period 93,512,500 93,512,500 93,512,500 93,512,500
Less: Accumulated Impairment Losses – – – –
Net Carrying Amount 93,512,500 93,512,500 93,512,500 93,512,500
Trade mark consists of SISIL brand name Rs. 55,000,000/- (Note 12.4) and UNIC brand name Rs. 38,512,500/- (Note 12.5)
Please refer Notes 12.4 and 12.5 for SISIL and UNIC impairment respectively.
101 271 227
INFORMATION
12.2 Software
Rs. Rs. Rs. Rs.
Cost
Acquired/Incurred During the Period 8,677,632 57,078,961 5,802,605 16,332,028
Amortisation
Software Impairment – 5,605,554 – –
Amortisation Charge for the Period 21,698,455 31,694,467 11,947,021 22,343,871
Carrying Amount
12.3 Other Intangible Assets Externally Acquired

Rs. Rs. Rs. Rs.
Cost
Acquired/Incurred During the Period – – – –
Amortisation
Amortisation Charge for the Period – – – –
Carrying Amount
Other Intangible Assets externally includes Sony distribution rights amounting to Rs. 46,431,920/- and Hayleys Brand Amounting
to Rs. 32,000,000/-. Hayleys Brand is fully amortised as at 31st March 2019. Refer Note 12.6 and 12.7 for amortisation of
Hayleys and impairment of Sony.
228 5 13 25 35
12.4 SISIL Trademark

The Company had acquired the “SISIL” trade mark in December 2000, amounting to Rs. 55 million. The management is of the
opinion that the aforementioned trademark has an indefinite useful life as their associated brand awareness and recognition
has existed over 50 years and the Company intends to utilise the said trademark for the foreseeable future. There are no legal,
regulatory, contractual, competitive, economic or other factors that may limit its useful life and accordingly, the carrying amount
of this trademark is determined after testing for impairment annually. Following assumptions are made to test for any impairment
as at 31st March 2019:
Annual Sales Growth for Next Five Years 14%

Gross Margin 27%
Discount Rate 11%
Indefinite Growth Rate after Year 2024 2%
12.5 UNIC Trademark

The Company had acquired the “UNIC” Trade mark in 2006 amounting Rs. 38,512,500/-. This trade mark is also considered to
have an indefinite useful life due to the factors mentioned in the preceding paragraph and accordingly, the carrying amount of
this trademark is determined after testing for impairment annually. Following assumptions are made to test for impairment as at
31st March 2019:

Gross Margin 25%
Discount Rate 11%
12.6 Hayleys Brand Name

The Company took over the showrooms, retail operation of the Hayleys Electronic Retail Limited, from 2nd January 2008 and
agencies of Philips and Kenwood from Hayleys Electronic Limited for Rs. 32 million. The entire purchase consideration is treated as
Goodwill and is amortised over the determined useful life of 5 years commencing from the period beginning 1st January 2009.
12.7 SONY Distribution Rights

The company had acquired the distribution rights of brand “SONY” in 2014 amounting Rs. 46,431,920/- This assets are now
carried at cost subject to annual impairment test and carrying amount as at 31st March 2019 is Rs.46,431,920/-.This distribution
right also considered to have an indefinite useful life due to the factors mentioned in the preceding paragraph accordingly, the
carrying amount of this trademark is determined after testing for impairment annually. Following assumptions are made to test for
impairment as at 31st March 2019:

Gross Margin 22%
Discount Rate 11%
12.8 Amortisation Charge for the Period

For twelve months For fifteen months For twelve months For fifteen months
ended 31st March ended 31st March ended 31st March ended 31st March
2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Amortisation of Software 21,698,455 31,694,467 11,947,021 22,343,871

21,698,455 31,694,467 11,947,021 22,343,871
101 271 229
INFORMATION
13. Investment in Subsidiaries – Company

Number of Shares Carrying Value
Country of As at As at As at As at
Incorporation 31st March 31st March 31st March 31st March
2019 2018 2019 2018
Rs. Rs.
Quoted
Singer Finance (Lanka) PLC Sri Lanka
Investment at the Beginning of the Period 164,267,209 132,931,054 1,452,283,921 982,241,596
Investment Made During the Period – 31,336,155 – 470,042,325
Investment Disposed During the Period (2,754,174) – (24,349,611) –
Investment at the End of the Period 161,513,035 164,267,209 1,427,934,310 1,452,283,921
Singer Industries (Ceylon) PLC Sri Lanka

Investment at the Beginning of the Period 3,373,967 3,373,967 692,407,683 692,407,683
Investments Made During the Period – – – –
Investment at the End of the Period 3,373,967 3,373,967 692,407,683 692,407,683
Regnis Lanka PLC Sri Lanka

Investments Made During the Period – – – –
Non-Quoted
Singer Digital Media (Pvt) Limited Sri Lanka
Investment at the Beginning of the period 500,000 500,000 5,000,000 5,000,000
Investment Made During the Period – – – –
Investment at the End of the period 500,000 500,000 5,000,000 5,000,000
Singer Business School (Pvt) Limited Sri Lanka

Investment at the Beginning of the Period 500,000 500,000 5,000,000 5,000,000
Investment Made During the Period – – – –
Investment at the End of the Period 500,000 500,000 5,000,000 5,000,000
Reality Lanka Limited Sri Lanka

Investment Made During the Period – – – – –
Total Investment in Subsidiaries 2,900,872,703 2,925,222,314
230 5 13 25 35
14. Other Non–current Assets

Prepaid Operating Leases – Leasehold right
Prepaid operating lease relates to operating lease paid in advance for the land acquired by Regnis Appliances (Pvt) Limited
from Board of Investment (BOI) in Sri Lanka. The Group amortise the leasehold land over the lease period of 50 years, on
straight line basis. The reconciliation of prepaid operating lease is as follows:
Rs. Rs. Rs. Rs.
At the Beginning of the Period 64,520,322 – – –

Acquisitions During the Period – 65,062,510 – –
Amortisation for the Period (1,301,249) (542,188) – –
At the end of the Period 63,219,073 64,520,322 – –
15. Other Investments

15.1 Non–current Financial Assets
Number of Shares Amount Amount
Non-Quoted As at As at As at As at As at As at
31st March 31st March 31st March 31st March 31st March 31st March
2019 2018 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Available-for-Sale Financial Assets (AFS)

Equity Investment Lanka Limited 1,665,000 17,020,000 17,020,000
Credit Information Bureau of Sri Lanka 100 41,300 –
1,665,100 17,061,300 17,020,000
Financial Assets at Fair Value through
Other Comprehensive Income (FVOCI)
Equity Investment Lanka Limited 1,665,000 17,020,000 17,020,000
Credit Information Bureau of Sri Lanka 100 41,300 –
1,665,100 17,061,300 17,020,000
Amount Amount
Rs. Rs. Rs. Rs.
Investments in Debentures
Held to Maturity Financial Assets
Fixed Rate 9.95% Senior Unlisted, Unsecured Redeemable, Rated
Debentures Redeemable on 18th June 2020 – – – 450,000,000
48 Months 12% Secured Debentures Redeemable on 6th April 2020 – – – 150,000,000
36 Months 11.5% Secured Debentures Redeemable on
6th April 2019 – – – 312,090,000
– – – 912,090,000
101 271 231
INFORMATION
Amount Amount
Rs. Rs. Rs. Rs.
Financial Assets at Amortised Cost

Fixed Rate 9.95% Senior Unlisted, Unsecured Redeemable, Rated
Debentures Redeemable on 18th June 2020 – – 450,000,000 –
48 Months 12% Secured Debentures Redeemable on
6th April 2020 – – 150,000,000 –
(Less) Impairment provision on Investment in Debentures – – (817,348) –
– – 599,182,652 –
Total Non Current Financial Assets 17,061,300 17,061,300 616,202,652 929,110,000
15.2 Short-Term Investments

Rs. Rs. Rs. Rs.
Held to Maturity Financial Assets

Investment in Treasury Bills – 580,351,485 – –
Investment in Treasury Bonds – 91,031,155 – –
– 671,382,640 – –
Financial Assets at Amortised Cost

36 Months 11.5% Secured Debentures Redeemable
on 6th April 2019 – – 312,090,000 –
Investment in Treasury Bills 529,920,590 – – –
Investment in Treasury Bonds 93,451,740 – – –
623,372,330 – 312,090,000 –
Total Short-term Investments 623,372,330 671,382,640 312,090,000 –
Further details relating to fair valuation and carrying value is provided in Note 35 to these Financial Statements.
232 5 13 25 35
16. Inventories
Rs. Rs. Rs. Rs.
Raw Materials 1,103,130,403 1,179,159,152 270,592,000 380,487,000

Work-in-Progress 176,221,424 177,062,951 74,591,000 71,995,000
Finished Goods 11,941,110,167 10,600,546,593 10,970,091,634 9,800,343,616
Supplies and Parts 647,659,048 572,820,285 633,329,719 561,886,869
Goods-in-Transit 1,238,774,794 854,455,933 1,055,824,318 621,714,686
15,106,895,836 13,384,044,914 13,004,428,671 11,436,427,171
Less: Impairment of Inventory (Note 16.1) (904,020,201) (731,024,874) (869,161,410) (695,132,558)
Unrealised Profit in Inventory (77,133,223) (79,296,628) – –
Consignment Inventory (25,443) (13,550) (25,443) (13,550)
Total Inventories 14,125,716,969 12,573,709,862 12,135,241,818 10,741,281,063
16.1 Impairment of Inventory

Rs. Rs. Rs. Rs.
Balance at the Beginning of the Period 731,024,874 715,812,992 695,132,558 650,899,533

Amount Recognised During the Period (Note 8) 172,995,327 15,211,882 174,028,852 44,233,025
Balance at the End of the Period 904,020,201 731,024,874 869,161,410 695,132,558
17. Loans Due from Related Parties

Relationship As at As at As at As at
Rs. Rs. Rs. Rs.
Regnis Lanka PLC Subsidiary – – 150,000,000 150,000,000

Reality Lanka Limited Subsidiary – – 62,150,767 69,150,767
Singer Business School (Pvt) Limited Subsidiary – – 5,000,000 –
Singer Finance (Lanka) PLC Subsidiary – – 1,000,000,000 1,000,000,000
Provision for Impairment – – (1,330,790) –
– – 1,215,819,977 1,219,150,767
Regnis Lanka PLC

Company granted this facility based on the fund requirement of Regnis Lanka PLC and will be recovered on demand. Interest is
charged based on the highest AWPLR prevail in the respective month + 0.5% to 2.0%.

Company granted this facility based on the fund requirement of reality Lanka Limited and it will be recovered on demand.
101 271 233
INFORMATION

Company granted this facility based on the fund requirement of Singer Finance (Lanka) PLC and will be recovered on demand.
Interest is charged based on the highest AWPLR prevail in the respective month + 0.5% to 2.0%.
18. Trade and Other Receivables

The effect of initially applying SLFRS 9 on the Group's Financial Assets is described in Note 2.13 (B) due to the transition method
chosen in applying SLFRS 9. Comparative information has not been restated to reflect the new requirement.
18.1 Non-current
Hire Debtors – Instalment Receivables 489,531,443 393,938,607 485,038,473 372,752,597

Less: Unearned hire debtors interest income (44,715,142) (43,108,652) (43,736,178) (40,629,947)
Provision for Impairment (2,470,564) – (2,470,564) –
442,345,737 350,829,955 438,831,731 332,122,650
Lease Rental Receivables

Gross Instalments in Lease 11,685,901,512 9,416,110,605 – –
Rental Received in Advance (89,159) (89,159) – –
11,685,812,353 9,416,021,446 – –
Less: Unearned Income (2,674,594,017) (2,070,449,248) – –
9,011,218,336 7,345,572,198 – –
Loan Debtors
Consumer and Personal Loans 1,068,634,832 480,410,919 – –
Rental Received in Advance – – – –
Less: Unearned Loan Interest Income (96,935,776) (77,006,387) – –
971,699,056 403,404,532 – –
Other Debtors
Rent Paid in Advance 747,600,000 767,235,953 747,600,000 763,656,794
Other Receivables – 15,450,423 – 2,989,000
Loans to Employees 18.4 305,446,016 280,486,790 245,804,687 243,137,575
1,053,046,016 1,063,173,166 993,404,687 1,009,783,369
11,478,309,145 9,162,979,851 1,432,236,418 1,341,906,019
234 5 13 25 35
18.2 Current
Hire Debtors
Hire Debtors – Instalments Receivables 8,704,710,568 8,582,637,814 8,683,389,508 8,498,528,903
Rental Received in Advance (84,188) (84,188) – –
Less: Unearned hire debtors interest income (1,400,039,779) (1,333,704,665) (1,398,448,966) (1,325,607,580)
Provision for Impairment (90,961,816) (64,886,178) (82,385,651) (53,096,143)
7,213,624,785 7,183,962,783 7,202,554,891 7,119,825,180
Lease Rental Receivables

Gross Instalments in Lease 7,333,492,114 5,885,499,839 – –
Less: Unearned Income (2,146,116,729) (1,721,535,607) – –
Provision for Impairment 18.3 (248,345,208) (126,311,107) – –
4,939,030,177 4,037,653,125 – –
Loan Debtors
Consumer and Personal Loans 3,432,153,576 2,909,032,853 – –
Less: Unearned Loan Interest Income (264,926,628) (285,970,584) – –
FD Loans 68,229,423 42,000,185 – –
Net Receivable 3,235,456,371 2,665,062,454 – –
Less: Provision for Impairment 18.3 (323,203,252) (168,104,070) – –
2,912,253,119 2,496,958,384 – –
Trade Debtors
Trade Receivables 18.3 5,811,614,548 5,655,684,133 4,370,734,959 4,214,116,152
Less: Provision for Impairment (758,362,703) (293,771,484) (645,981,951) (234,945,963)
5,053,251,845 5,361,912,649 3,724,753,008 3,979,170,189
Other Debtors
Advance and Other Receivables 2,734,863,828 1,661,417,605 2,600,357,987 1,509,870,839
Less: Provision for Impairment (924,243,104) (666,561,992) (922,921,231) (665,101,091)
1,810,620,724 994,855,613 1,677,436,756 844,769,748
Shipping Guarantees – 27,092,217 – –
Prepayments 619,011,838 467,275,531 163,192,642 105,832,478
Loans to Employees 124,365,893 115,512,329 92,449,765 92,449,765
743,377,731 609,880,077 255,642,407 198,282,244
22,672,158,380 20,685,222,631 12,860,387,063 12,142,047,361
101 271 235
INFORMATION
18.3 Provision for Impairment

Rs. Rs. Rs. Rs.
Trade Receivables Impairment

Provision for Impairment – Hire Debtors
Movement
Balance as at the Beginning of the Period 64,886,178 50,985,870 53,096,143 25,491,954
Impact of Adopting SLFRS 9 – Financial Instruments 27,523,634 – 26,701,301 –
Provided During the Period (Note 8.1) 14,854,732 22,044,710 17,380,351 33,294,359
Write-off/Transfer During the Period (13,832,164) (8,144,402) (12,321,580) (5,690,170)
Balance as at End of the Period 93,432,380 64,886,178 84,856,215 53,096,143
Provision for Impairment – Lease Rental

Receivable
Movement
Balance at the Beginning of the Period 126,311,107 93,696,290 – –
Impact of Adopting SLFRS 9 – Financial Instruments 46,251,037 – – –
Provided During the Period (Note 8.1) 143,871,915 68,944,048 – –
Write-off/Transfer During the Period (68,088,853) (36,329,231) – –
Balance at the End of the Period 248,345,206 126,311,107 – –
Provision for Impairment – Loan Debtors

Movement
Impact of Adopting SLFRS 9 – Financial Instruments 62,265,251 – – –
Provided During the Period (Note 8.1) 140,642,025 156,665,425 – –
Write-off/Transfer During the Period (47,808,094) (31,983,274) – –
Provision for Impairment – Trade Debtors

Movement
Impact of Adopting SLFRS 9 – Financial Instruments 246,301,807 – 219,373,305 –
Total Provision for Trade Receivables 1,423,343,541 653,072,839 730,838,166 288,042,106
Provision for Impairment – Other Debtors

Movement
Total Provision for Impairment 2,347,586,645 1,319,634,832 1,653,759,397 953,143,197
236 5 13 25 35
18.4 Loans to Employees

Rs. Rs. Rs. Rs.
Balance as at the Beginning of the Period 395,999,119 350,147,224 335,587,340 296,152,856

Loans granted During the Period 193,240,400 231,456,517 126,460,000 178,835,350
Less: Repayments (159,427,610) (185,604,622) (123,792,889) (139,400,865)
Balance as at the End of the Year 429,811,908 395,999,119 338,254,452 335,587,340
Due Within One Year 124,365,893 115,512,329 92,449,765 92,449,765
Due After One Year 305,446,015 280,486,790 245,804,687 243,137,575
18.5 Maturity Analysis of Hire Purchase, Lease and Loans

Consolidated – As at 31st March 2019
Less than 3-12 1-3 3-5 Over 2019
3 Months Months Years Years 5 Years Total
Hire Debtors 2,866,548,769 4,436,453,886 352,118,564 849,301 – 7,655,970,520

Lease Rental Receivables 1,612,711,611 3,326,229,408 6,873,472,451 2,110,972,176 26,862,868 13,950,248,514
Loan Debtors 425,057,532 2,487,195,587 329,994,550 640,921,909 782,598 3,883,952,175
4,904,317,911 10,249,878,881 7,555,585,565 2,752,743,386 27,645,466 25,490,171,209
Consolidated – As at 31st March 2018

Less than 3-12 1-3 3-5 Over Total
3 Months Months Years Years 5 Years
Hire Debtors 3,821,993,586 3,361,969,197 348,744,379 2,085,575 – 7,534,792,738

Lease Rental Receivables 1,098,056,091 2,939,597,034 5,727,692,782 1,606,990,995 10,888,421 11,383,225,322
Loan Debtors 743,438,665 1,753,519,719 336,626,139 65,647,645 1,130,748 2,900,362,916
6,413,063,300 8,055,085,950 5,663,488,342 1,674,724,215 12,019,169 21,818,380,976
Company – As at 31st March 2019

Hire Debtors 2,857,154,007 4,433,932,341 350,300,274 – – 7,641,386,622

2,857,154,007 4,433,932,341 350,300,274 – – 7,641,386,622
Company – As at 31st March 2018

Hire Debtors 3,797,473,732 3,322,351,448 332,122,650 – – 7,451,947,830

3,797,473,732 3,322,351,448 332,122,650 – – 7,451,947,830
101 271 237
INFORMATION
19. Amounts Due from Related Parties

Rs. Rs. Rs. Rs.
Hayleys PLC Parent – 788,000 – –

Singer Finance (Lanka) PLC Subsidiary – – – 173,772,072
Singer Business School (Pvt) Limited Subsidiary – – 3,310,666 11,623,955
– 788,000 3,310,666 185,396,027
20. Cash and Cash Equivalents

Components of Cash and Cash Equivalents
20.1 Favourable Cash and Cash Equivalents Balances

Rs. Rs. Rs. Rs.
Cash at Banks 749,758,092 514,254,469 527,301,613 366,536,513

Cash in Hand 1,099,884,738 824,752,271 810,411,079 651,091,433
1,849,642,830 1,339,006,740 1,337,712,692 1,017,627,946
20.2 Unfavourable Cash and Cash Equivalent Balances

Bank Overdrafts (2,916,428,154) (2,132,691,242) (1,417,088,608) (1,237,088,725)
Total Cash and Cash Equivalents for the
Purpose of Cash Flow Statement (1,066,785,324) (793,684,502) (79,375,916) (219,460,779)
21. Stated Capital

As at Subdivision As at
1st January 2017 of Shares 31st March 2018
Number of Shares – Ordinary Shares (Nos.) 125,209,610 250,419,220 375,628,830
Rupees – Ordinary Shares (Rs.) 626,048,050 – 626,048,050
1st April 2018 31st March 2019
Number of Shares – Ordinary Shares (Nos.) 375,628,830 – 375,628,830
Rupees – Ordinary Shares (Rs.) 626,048,050 – 626,048,050
The holders of ordinary shares are entitled to receive dividend as declared from time to time and are entitled to one vote per
share at meetings of the Company.
As per the resolution passed at the Extra Ordinary General Meeting held on 31st March 2017, the issued and fully paid Ordinary
shares of the Company was subdivided, by subdividing each issued Ordinary share of the Company in the proportion of three
(03) shares for every One (01) shares held, thus increasing the number of existing issued Ordinary shares of the Company from
125,209,610 to 375,628,830 without effecting an increase in the Stated Capital of the Company of Rupees six hundred and
twenty six million forty eight thousand and fifty only (Rs. 626,048,050/-).
238 5 13 25 35
22. Capital Reserves

Rs. Rs. Rs. Rs.
Revaluation Reserve 1,118,122,637 577,919,322 1,158,333,041 847,555,412

Revaluation Reserve (Note 22.1) 1,118,122,637 577,919,322 1,158,333,041 847,555,412
22.1 Revaluation Reserves

Rs. Rs. Rs. Rs.
Balance at the Beginning of the Period 577,919,322 1,057,964,069 847,555,412 1,065,542,144

Revaluation Gain on Property,
Plant and Equipment 784,157,271 – 453,751,963 –
Deferred Tax on Revaluation Gain on Property,
Plant and Equipment (Note 9.4) (219,564,036) (451,830,901) (127,050,550) (198,082,001)
Realisation of Revaluation Surplus (24,389,920) (28,213,846) (15,923,784) (19,904,731)
Balance at the End of the Period 1,118,122,637 577,919,322 1,158,333,041 847,555,412
The revaluation reserve relates to revaluation of freehold land and buildings and represents the fair value of the land and
buildings as at the date of revaluation.
23. Statutory Reserves

Rs. Rs. Rs. Rs.
(a) Reserve Fund

Reserve Fund (Note 23.1) 163,096,146 136,009,451 – –
163,096,146 136,009,451
23.1 Reserve Fund

Rs. Rs. Rs. Rs.

Transfer of Surplus During the Period 27,086,695 40,648,742 – –
The balance in the reserve fund will be used only for the purpose specified in the Central Bank Direction No. 1 of 2003.
The Reserve Fund is maintained in compliance with Direction No. 1 of 2003 Central Bank of Sri Lanka (Capital Funds) issued to
Finance Companies.
101 271 239
INFORMATION
As per the said Direction, every Licensed Finance Company shall maintain a Reserve Fund and transfer to such reserve fund out of
the net profits of the each year after due provisions has been made for taxation and bad and doubtful debts on following basis:
Capital Funds to Deposit Liabilities % of Transfer to Reserve Fund
Not less than 25% 5

Less than 25% and not less than 10% 20
Less than 10% 50
Accordingly, Singer Finance (Lanka) PLC has transferred 5% of its net profit after taxation to the Reserve Fund as Company’s
Capital Funds to Deposit Liabilities, belongs to not less than 25%.
24. Revenue Reserves

Rs. Rs. Rs. Rs.
Summary
(a) General Reserve (Note 24.1) 2,700,000,000 2,700,000,000 2,700,000,000 2,700,000,000
2,700,000,000 2,700,000,000 2,700,000,000 2,700,000,000
(b) Retained Earnings 2,335,830,612 2,795,477,725 151,601,145 626,088,413

2,335,830,612 2,795,477,725 151,601,145 626,088,413
Revenue Reserves 5,035,830,612 5,495,477,725 2,851,601,145 3,326,088,413
24.1 General Reserves

The general reserve which is a revenue reserve represents set aside by the Directors for general application.
The movement of general reserve is as follows:
Rs. Rs. Rs. Rs.
Balance at the Beginning of the Period 2,700,000,000 2,700,000,000 2,700,000,000 2,700,000,000

Transferred from Retained Earnings – – – –
At the End of the Period 2,700,000,000 2,700,000,000 2,700,000,000 2,700,000,000
240 5 13 25 35
25. Interest-Bearing Loans and Borrowings

25.1 Loans and Borrowings – Consolidated
As at As at Total As at As at Total
31st March 2019 31st March 2019 As at 31st 31st March 2018 31st March 2018 As at 31st
Amount Repayable Amount Repayable March 2019 Amount Repayable Amount Repayable March 2018
Within 1 Year After 1 Year Within 1 Year After 1 Year
Debentures (Note 25.2) 97,210,000 2,137,906,386 2,235,116,386 5,408,103,763 1,575,448,576 6,983,552,339

Bank Loans (Note 25.3 a,b) 18,554,647,218 7,197,055,004 25,751,702,222 13,674,415,140 2,744,449,832 16,418,864,972
Securitisation Loans
(Note 25.4) 568,920,960 1,305,198,080 1,874,119,040 – – –
19,220,778,178 10,640,159,470 29,860,937,648 19,082,518,903 4,319,898,408 23,402,417,311
Accrued Interest for interest
Bearing Loans and Borrowings 270,389,119 – 270,389,119 185,750,549 – 185,750,549
19,491,167,297 10,640,159,470 30,131,326,767 19,268,269,452 4,319,898,408 23,588,167,860
25.2 Debentures – Consolidated

As at New Issues Redemption As at
Rs. Rs. Rs. Rs.
Fixed Rate 8.60% Senior, Unlisted, Unsecured, Redeemable,

Rated Debentures Redeemable on 7th June 2018 2,929,980,000 – (2,929,980,000) –
Variable Rate – 1 year Net TB+1.25% (Floor 7% Capital
9.5%) Senior, Unlisted, Unsecured, Redeemable, Rated
Debentures Redeemable on 7th June 2018 70,020,000 – (70,020,000) –
Fixed Rate 14.50% Senior, Listed, Unsecured, Redeemable,
Rated Debentures redeemable on 10th September 2018 416,668,000 – (416,668,000) –
Rated Debentures Redeemable on 15th March 2019 460,560,000 – (460,560,000) –
Variable Rate – 6 Months Gross TB + 1.50% (Floor 9.50%
Cap 12.50%) Senior, Listed, Unsecured, Redeemable,
Rated Debentures redeemable on 15th March 2019 1,539,440,000 – (1,539,440,000) –
Fixed Rate 12.00%. Senior, listed, Unsecured, Redeemable,
Rated Debentures Redeemable on 28th September 2021 – 656,800,000 – 656,800,000
Fixed Rate 11.50% Senior, Listed, Secured, Redeemable,
Rated Debentures Redeemable on 6th April 2019 409,300,000 – – 409,300,000
Fixed Rate 12% Senior, Listed, Secured, Redeemable, Rated
Debentures Redeemable on 6th April 2020 590,700,000 – – 590,700,000
Fixed Rate 9.95% Senior, Listed, Secured, Redeemable,
Rated Debentures Redeemable on 16th June 2020 1,500,000,000 – – 1,500,000,000
Transaction Cost (21,025,661) 11,432,048 – (9,593,614)
Less: Investment in debenture in subsidiary (912,090,000) – – (912,090,000)
6,983,552,339 668,232,048 (5,416,668,000) 2,235,116,386
101 271 241
INFORMATION
25.3 Bank Loans – Consolidated

Balance as at Loans Obtained Repayment Balance as at
Rs. Rs. Rs. Rs.
(a) Bank Loans Repayable within one Year – Consolidated

Bank Loans 13,674,415,140 50,662,126,131 (45,781,894,053) 18,554,647,218
13,674,415,140 50,662,126,131 (45,781,894,053) 18,554,647,218
The bank loans repayable within one year consist of short-term loans obtained from Hatton National Bank PLC, People’s Bank,
Nations Trust Bank PLC, Commercial Bank of Ceylon PLC, Sampath Bank PLC, Seylan Bank PLC, Standard Chartered Bank
Sri Lanka Limited, National Development Bank PLC, Deutsche Bank Sri Lanka and Muslim Commercial Bank Sri Lanka.
These loans bear interest rate between 10.35% to 13.55% and due for settlement at maturity.
(b) Bank Loan Repayable After One Year – Consolidated

Company Lender/Rate of Interest (p.a.) Repayment Security As at As at
Rs. Rs.
Singer (Sri Lanka) PLC Standard Chartered Bank Sri Lanka Limited Quarterly Negative pledged
(Fixed rate 12.95%) 220,375,004 657,149,832
Singer (Sri Lanka) PLC Commercial Bank of Ceylon PLC Annually Negative pledged
(AWPLR +1%, Rate Reviewed monthly) 1,250,000,000 1,875,000,000
Singer (Sri Lanka) PLC Commercial Bank of Ceylon PLC Quarterly Negative Pledged
(Variable rate) (PLR + 1% – Floor 13.25%) 2,000,000,000 –
Singer (Sri Lanka) PLC Sampath Bank PLC (Variable rate) Quarterly Negative Pledged
(PLR + 1%) Over Fixed Assets
of the company 1,750,000,000 –
Singer (Sri Lanka) PLC Hatton National Bank PLC Quarterly Negative Pledged
(Variable rate) (PLR + 1%) 1,500,000,000 –
Singer Finance (Lanka) PLC Seylan Bank PLC (AWPLR + 2.5%) Monthly Negative pledged 383,380,000 –
Singer Finance (Lanka) PLC Sampath Bank PLC AWPLR + 1.75 Monthly Negative pledged
Rate review Monthly 93,300,000 –
Singer Finance (Lanka) PLC Sampath Bank PLC (AWPLR +1.5%) Monthly Negative pledged
Repayment – 192,900,000
Singer Finance (Lanka) PLC Seylan Bank PLC (AWPLR +2%) Monthly Negative pledged
Repayment – 19,400,000
7,197,055,004 2,744,449,832
25.4 Securitisation Loans – Consolidated

(a) Securitisation Loans Repayable within One Year
As At New Redemption As At
1st April 2018 Issues 31st March 2019
Securitisation Loans – 2,050,000,000 (153,500,000) 1,896,500,000

Transaction Cost – (22,380,960) – (22,380,960)
Total – 2,027,619,040 (153,500,000) 18,741,119,040
242 5 13 25 35
(b) Securitisation Loans Repayable after One Year – Consolidated

Company Lender/Rate of Interest Repayment Security As at As at
Singer Finance Hatton National Bank PLC Lease and Hire

(Lanka) PLC (Fixed 13.32% AWPLR + 1.75%) Structured Purchase receivable 461,880,737 –
(Lanka) PLC (Rate review monthly AWPLR + 2.5%) Quarterly Purchase receivable 1,112,238,303 –
(Lanka) PLC (Rate review monthly) Monthly Purchase receivable 300,000,000 –
1,874,119,040 –
25.5 Bank Facilities – Consolidated

As at 31st March 2019 As at 31st March 2018
Utilised Total Facility Utilised Total Facility
Rs. Rs. Rs. Rs.
Overdrafts 2,916,428,154 3,220,000,000 2,132,691,242 3,495,000,000

Term loans 7,197,055,004 7,828,333,336 2,744,449,832 4,355,000,000
Short-term loans and current portion of long-term loans 18,554,647,218 18,744,772,224 13,674,415,140 19,914,000,000
Total Debt Facility 28,668,130,376 29,793,105,560 18,551,556,214 27,764,000,000
Guarantees 561,769,119 1,800,000,000 524,894,785 2,200,000,000
Letter of credits 4,319,720,459 7,275,605,110 4,511,447,444 10,645,000,000
Total Debt and Other Facilities 33,549,619,954 38,868,710,670 23,587,898,443 40,609,000,000
25.6 Interest-Bearing Loans and Borrowings – Company

As at 31st As at 31st Total As at 31st As at 31st Total
March 2019 March 2019 As at 31st March 2018 March 2018 As at 31st
Amount Repayable Amount Repayable March 2019 Amount Repayable Amount Repayable March 2018
Within 1 Year After 1 Year Within 1 Year After 1 Year
Debentures (Note 25.7) – 653,554,271 653,554,271 4,991,435,763 – 4,991,435,763
Bank Loans
(Note 25.8 a,b) 13,266,614,322 6,720,375,004 19,986,989,326 9,175,592,417 2,532,149,832 11,707,742,249
13,266,614,322 7,373,929,275 20,640,543,597 14,167,028,180 2,532,149,832 16,699,178,012
Accrued Interest for

interest Bearing Loans
and Borrowings 109,699,116 – 109,699,116 72,360,115 – 72,360,115
13,376,313,438 7,373,929,275 20,750,242,713 14,239,388,295 2,532,149,832 16,771,538,128
25.7 Debentures – Company

As At New Issues Redemption As At
Rs. Rs. Rs. Rs.
Fixed Rate 8.60% Senior, Listed, Unsecured, Redeemable,Rated

Debentures redeemable on 7th June 2018 2,929,980,000 – (2,929,980,000) –
Variable Rate 1 year Net TB+1.25% (Floor 7% Cap 9.5%)

Senior,Listed, Unsecured, Redeemable, Rated Debentures
redeemable on 7th June 2018 70,020,000 – (70,020,000) –
101 271 243
INFORMATION
As At New Issues Redemption As At

Rs. Rs. Rs. Rs.

Rated Debentures redeemable on 15th March 2019 460,560,000 – (460,560,000) –
Variable Rate – 6 Months Gross TB + 1.50% (Floor 9.50% Cap

12.50%) Senior, Listed, Unsecured, Redeemable,
Rated Debentures Redeemable on 15th March 2019 1,539,440,000 – (1,539,440,000) –
Fixed rate 12.00%. Senior,listed, Unsecured, Redeemable,

Rated Debentures Redeemable on 28th September 2021 – 656,800,000 – 656,800,000
Transaction Cost (8,564,237) 5,318,508 – (3,245,729)
4,991,435,763 662,118,508 (5,000,000,000) 653,554,271
25.8 Bank Loans – Company

As at Loan Repayment As at
1st April 2018 Obtained 31st March 2019
Rs. Rs. Rs. Rs.
(a) Bank Loans Repayable within One Year – Company

Bank Loans, Short-Term Loans and Current
Portion of Long-Term Loans 9,175,592,417 32,932,928,049 (28,841,906,144) 13,266,614,322
9,175,592,417 32,932,928,049 (28,841,906,144) 13,266,614,322
The bank loans repayable within one year consist of short term loans obtained from Hatton National Bank PLC, Nations Trust
Bank PLC, Commercial Bank of Ceylon PLC, Sampath Bank PLC, Deutsche Bank Sri Lanka, Seylan Bank PLC, Standard
Chartered Bank Sri Lanka Limited, People’s Bank and Muslim Commercial Bank Sri Lanka. These loans bears interest rate
between 10.3% to 11.45% and due for settlement of maturity.
(b) Bank Loan Repayable After One Year – Company

Lender Repayment Security As at As at
Rs. Rs.
Standard Chartered Bank Sri Lanka Limited Quarterly Negative Pledged

(Fixed Rate 12.95%) 220,375,004 657,149,832
Commercial Bank of Ceylon PLC Annually Negative Pledged

(AWPLR + 1 Rate review Monthly) 1,250,000,000 1,875,000,000
Commercial Bank of Ceylon PLC Quarterly Negative Pledged

(Variable rate) (PLR + 1% – Floor 13.25%) 2,000,000,000 –
Sampath Bank PLC (Variable rate) (PLR + 1%) Quarterly Negative Pledged Over Fixed
Assets of the company 1,750,000,000 –
Hatton National Bank PLC (Variable rate) (PLR + 1%) Quarterly Negative Pledged 1,500,000,000 –
6,720,375,004 2,532,149,832
244 5 13 25 35
25.9 Bank Facilities – Company

Utilised Total Facility Utilised Total Facility
Rs. Rs. Rs. Rs.
Overdraft 1,417,088,608 2,195,000,000 1,237,088,725 2,295,000,000
Term Loans 6,720,375,004 6,628,333,336 2,532,149,832 3,655,000,000
Short-Term Loans and Current Portion of Long-Term Loans 13,266,614,322 17,105,377,334 9,175,592,417 12,615,000,000
Total Debt Facility 21,404,077,934 25,928,710,670 12,944,830,974 18,565,000,000
Guarantees 561,769,119 1,800,000,000 524,894,785 1,750,000,000
Letter of Credit 3,621,720,459 7,130,000,000 2,504,862,843 6,630,000,000
Total Debt and Other Facilities 25,587,567,512 34,858,710,670 15,974,588,602 26,945,000,000
26. Deferred Tax Assets/(Liabilities)

26.1 Deferred Tax

Balance at the Beginning of the Period (467,235,592) 124,061,153 69,642,532 147,270,286
Adjustment on Error Correction (19,222,000) – – –
Amount (Originating)/Reversal During the Period –
Recognised in Profit or Loss 9.2 356,631,694 (82,215,026) 200,985,408 110,059,561
Amount (Originating)/Reversal During the Period –
Recognised in Statement of Other Comprehensive
Income Profit and Loss 9.4 5,871,651 6,319,485 7,545,349 2,653,957
Deferred Tax on Revaluation of PPE 9.4/26.3 (247,190,822) (516,049,055) (127,050,550) (198,082,001)
Deferred Tax Impact on Realisation of
Revaluation Surplus 9.2 9,484,969 7,740,729 6,192,583 7,740,729
Deferred tax adjustment on SLFRS 9 and SLFRS 15 114,981,691 – 107,441,711 –
Deferred Tax Impact on Unrealised Profit in inventory 9.2 (190,793) (7,092,878) – –
Balance as at the End of the Period (246,869,202) (467,235,592) 264,757,033 69,642,532
101 271 245
INFORMATION
26.2 Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against
tax liabilities and when the deferred tax relate to the same fiscal authority.
Deferred tax is computed using the tax rate which was enacted by the end of the reporting period which is 28% and Regnis
Appliances (Pvt) Limited at 20%.
26.3 As per the newly enacted Inland Revenue Act No. 24 of 2017, business income includes gains from realisation of capital
assets and liabilities of a business. Accordingly, the gain from the realisation of an asset or liability shall be the amount by
which the sum of the consideration received for the asset or liability exceeds the acquiring cost of the asset or liability at the
time of realisation. The Group has recognised a revaluation reserve on free hold land (Capital asset of the Group) amounting to
Rs. 606,566,750/- (2018 – Rs. 1,843,032,339/-), Company 284,984,250/- as at 31st March 2018 which is the amount by which
the sum of the carrying value of the freehold land exceeds the acquiring cost of the land based on the revaluation carried out
and accounted for as at the balance sheet date. Hence, the Group has recognised a deferred tax liability of Rs. 685,887,745/-
(2018 – Rs. 516,049,055/-), Company Rs. 277,877,591/- (2018 – Rs. 198,082,001/- on revaluation reserve of freehold lands
which is computed at the corporate tax rate of 28%.
26.3.1 Consolidated
Assets Liabilities Assets Liabilities
Rs. Rs. Rs. Rs.
(a) Composition of Deferred Tax

Property, Plant and Equipment – 1,361,085,819 – 1,071,132,890
Intangible Assets – 34,029,561 – 26,353,008
Lease Rentals 1,007,875 133,123,515 139,257,459
Tax Losses 954,073 – 6,078,222 –
Provision for Inventories 275,554,201 – 222,864,788 –
Provision on Receivables 656,954,137 – 286,217,145 –
Employee Benefit Obligations 257,787,290 – 222,225,372 –
Provision for Warranty 89,112,116 – 32,122,238 –
1,281,369,693 1,528,238,895 769,507,764 1,236,743,357
Net deferred tax 246,869,202 467,235,592
246 5 13 25 35
26.3.2 Company
Assets Liabilities Assets Liabilities
Rs. Rs. Rs. Rs.
(a) Composition of Deferred Tax

Property, Plant and Equipment – 683,818,578 – 564,113,342
Intangible Assets – 17,608,992 – 16,308,898
Provision for Inventories 243,365,195 – 194,637,116 –
Provision on Receivables 463,052,631 – 266,880,095 –
Employee Benefit Obligations 176,612,230 – 160,722,563 –
Provision for Warranty 83,154,547 – 27,824,998 –
966,184,603 701,427,571 650,064,772 580,422,240
Net Deferred Tax 264,757,033 – 69,642,532
27. Employee Benefit Obligations

Present Value of Unfunded Gratuity 871,971,129 794,644,981 630,757,966 574,009,152

Total Present Value of the Obligation 871,971,129 794,644,981 630,757,966 574,009,152
Provision for Retiring Gratuity

At the Beginning of the Period 794,644,981 651,143,995 574,009,152 476,754,466
Adjustment due to transfer of employees out
of Company (13,970,000) – (13,970,000) –
Actuarial (Gain)/Loss on Obligation 9.4 21,158,221 18,910,000 26,947,676 9,478,416
Current Service Costs 57,258,140 67,788,899 40,169,233 46,279,839
Interest Costs 87,410,988 93,700,797 63,141,045 68,138,623
946,502,330 831,543,691 690,297,106 600,651,344
Benefits Paid During the Period (74,531,201) (36,898,710) (59,539,140) (26,642,193)
At the End of the Period 871,971,129 794,644,981 630,757,966 574,009,152
The Group and Company maintains a non-contributory defined benefit plan providing for gratuity benefits payable to employees
who will get eligible upon their retirement.
As at 31st March 2019, the gratuity liability was valued under the Projected Unit Credit (PUC) method by a professionally qualified
actuary Mr. Pushpakumar Gunasekara of Smiles Global (Pvt) Limited who is qualified Actuary, Associate of the Institute of
Actuaries of Australia (AIAA).
101 271 247
INFORMATION
Following key assumptions were made in arriving at the above figures:
2019 2018
(a) Rate of Discount 11.0% p.a. (net of tax) 11.0% p.a. (net of tax)
(b) Salary Increment Rate
Year 1 10% 10%
Year 2+ 10% 9%
(c) Retirement Age
All Staff Members (Other than Factory Non-Management Staff) 60 years 60 years
Branch Managers 55 years 55 years
Factory Non-Management Staff – Singer Industries (Ceylon) PLC 60 years 60 years
Other Factory Non-Management Staff 55 years 55 years
(d) Assumptions regarding future mortality are based on A1967/70 Mortality Table, issued by the Institute of Actuaries, London.
The demographic assumptions underline the valuation are with respect to retirement age, early withdrawal from service and
retirement on medical grounds.
The expense is recognised in the following line items in the Income statement.
Expense is recognised in the following line items in the Income statement.
For twelve months For twelve months For twelve months For twelve months
ended 31st March ended 31st March ended 31st March ended 31st March
2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Cost of Sales 19,587,673 61,695,402 10,961,702 12,420,280

Selling and Administration Expenses 125,081,455 99,794,294 92,348,576 101,998,182
144,669,128 161,489,696 103,310,278 114,418,462
27.1 Sensitivity Analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the benefit obligation by the amounts shown below:
Increase Decrease Increase Decrease
Rs. Rs. Rs. Rs.
Discount Rate (1% Movement) (43,945,630) 48,889,476 (32,619,543) 36,416,058

Future Salary (1% Movement) 49,458,488 (45,209,771) 37,188,452 (33,874,786)
248 5 13 25 35
28. Security Deposits

Rs. Rs. Rs. Rs.
Balance at the Beginning of the Period 1,199,127,333 1,018,451,850 1,199,127,333 1,018,451,850

Contribution During the Period 138,960,799 108,243,347 84,810,694 108,243,347
Interest Charges 148,317,161 168,619,531 146,162,296 168,619,531
Shortages Recovered (43,263,080) (58,152,701) (43,263,080) (58,152,701)
ESD Releases (54,709,192) (38,034,694) (54,709,192) (38,034,694)
Balance at the End of the Period 1,388,433,021 1,199,127,333 1,332,128,051 1,199,127,333
29. Trade and other Payables

Rs. Rs. Rs. Rs.
Trade Payables 4,606,937,477 5,234,301,866 3,218,426,890 3,835,415,978

Value Added Tax Payable 52,964,929 78,224,110 (11,478,512) 14,216,669
MSPS Payable 38,937,714 94,291,306 38,417,044 94,031,975
ETF Payable 8,919,478 20,503,576 8,919,478 20,460,848
Advances Received from Customers (Note 29.1) 287,775,219 284,604,628 257,382,652 284,604,628
Accrued Expenses 1,314,537,407 1,378,838,308 1,048,277,442 1,113,729,765
Other Payables 810,047,047 880,560,560 400,376,205 541,868,243
Warranty Provisions (Note 29.3) 200,918,938 141,647,324 153,854,524 99,374,992
7,321,038,209 8,112,971,678 5,114,175,724 6,003,703,096
29.1 Advance Received From Customers

Rs. Rs. Rs. Rs.
Contract Liabilities 36,921,881 19,638,343 36,921,881 19,638,343

Other Advances 250,853,339 264,966,285 220,460,772 264,966,285
287,775,219 284,604,628 257,382,652 284,604,628
101 271 249
INFORMATION
29.2 Warranty Provision

Rs. Rs. Rs. Rs.

Reclassification from Deferred Revenue on initial
application of SLFRS 15 137,645,787 – 137,645,787 –
Provision Made During the Period 148,950,254 63,075,541 113,004,086 5,300,000
Utilised During the Period (84,198,078) (46,941,524) (53,043,992) –
29.3 Warranty Provision

Rs. Rs. Rs. Rs.
Due after One Year 143,126,349 – 143,126,349 –

Due within One Year 200,918,938 141,647,324 153,854,524 99,374,992
344,045,287 141,647,324 296,980,873 99,374,992
*Warranty Provisions have been recognised for expected warranty claims on products. See the accounting policies in Note 2.6.1.
30. Deferred Revenue

Rs. Rs. Rs. Rs.
Balance as at Beginning of the Period 246,289,945 438,989,246 246,289,945 438,989,246

Adjustment on initial application of SLFRS 15 226,619,389 – 226,619,389 –
Reclassification to warranty on initial application of
SLFRS 15 (137,645,787) – (137,645,787) –
Amounts recognised During the Period 105,722,629 (220,658,167) 106,942,451 (220,658,167)
Amounts Transferred During the Period (167,013,118) 27,958,866 (173,742,918) 27,958,866
Balance as at the End of the Period 273,973,058 246,289,945 268,463,080 246,289,945
Due within One Year 188,044,737 119,961,349 182,534,759 119,961,349

Due after One Year 85,928,321 126,328,596 85,928,321 126,328,596
273,973,058 246,289,945 268,463,080 246,289,945
30.1 Deferred Revenue includes deferred service fee on air conditioners, Sanasuma Extended Warranty Scheme and amount
deferred on motor bike services income as at 31st March 2019.
250 5 13 25 35
31. Income Tax Payables/(Receivables)

Notes Rs. Rs. Rs. Rs.
Balance at the Beginning of the Period (46,635,361) 245,280,570 (157,630,474) (1,767,152)

Charge for the Period 9 477,606,670 614,776,454 143,238,137 224,296,133
(Over)/Under Provision in respect
of Previous Year 9 104,474,835 20,055,084 12,102,703 359,716
Payments Made During the Period (606,399,784) (926,747,469) (237,898,052) (380,519,171)
Balance at the End of the Period (70,953,640) (46,635,361) (240,187,686) (157,630,474)
32. Dividend Payables

Rs. Rs. Rs. Rs.
Unclaimed Dividends 88,496,948 220,838,973 49,212,196 166,754,628

88,496,948 220,838,973 49,212,196 166,754,628
33. Dividends
Company
Rs. Rs.
Ordinary Shares
Final Dividend 2018/19 – Nil (2016 – Rs. 8.80 ) – 1,101,844,568
Interim Dividend 2018/19 – Rs. 0.65 (2017/18 – Rs. 2.20) 244,158,740 826,383,426
244,158,740 1,928,227,994
Dividend Per Share (Rs.) 0.65 2.20
34. Amounts Due to Related Parties

34.1 Amounts Due to Related Parties – Trade
Rs. Rs. Rs. Rs.
Singer Industries (Ceylon) PLC Subsidiary Company – – 65,450,436 105,987,239

Regnis (Lanka) PLC Subsidiary Company – – 667,743,445 363,661,515
Regnis Appliances (Pvt) Limited Subsidiary Company – – 213,374,482 185,500,241
Singer Finance (Lanka) PLC Subsidiary Company – – 78,738,426 –
Singer Digital Media (Pvt) Limited Subsidiary Company – – 1,482,650,928 1,969,146,333

Hayleys Travels and Tours (Pvt) Affiliate Company
Limited – 7,087,599 – 7,087,599
– 7,087,599 2,507,957,717 2,631,382,927
101 271 251
INFORMATION
34.2 Amounts Due to Related Parties – Non Trade

Rs. Rs. Rs. Rs.
Hayleys PLC Parent Company 200,549,783 195,311,266 198,883,053 194,195,103

Hayleys Advantis Limited Affiliate Company 24,132,979 81,198,192 24,132,979 81,198,192
Volanka (Pvt) Limited Affiliate Company 7,537,234 25,359,894 7,537,234 25,359,894
Hayleys Aventura (Pvt) Limited Affiliate Company 6,845,718 23,033,298 6,845,737 23,033,298
Carbotels (Pvt) Limited Affiliate Company 6,292,553 21,172,021 6,292,557 21,172,021
Hayleys Agriculture Holdings Limited Affiliate Company 6,154,255 20,706,702 6,154,255 20,706,702
Mr. K.D.D. Perera Key Management
Personnel (KMP) 4,508,343 15,168,842 4,508,343 15,168,842
256,020,865 381,950,214 254,354,158 380,834,051
Total 256,020,865 389,037,813 2,762,311,875 3,012,216,978
35. Other Financial Liabilities

As at 31st March 2019 As at 31st March 2018 As at 31st March 2019 As at 31st March 2018
Rs. Rs. Rs. Rs.
Deposits from Customers (Note 35.1) 5,953,023,001 5,229,639,918 – –

Due within One Year 5,148,467,467 4,826,583,524 – –
Due after One Year 804,555,534 411,393,904 – –
Derivative Financial Liabilities (Note 35.2) (85,648,063) 8,337,510 (85,648,063) 8,337,510
35.1 Deposits from Customers

Balance at the Beginning of the Period 5,229,639,918 3,041,946,900
New Deposits 5,673,100,303 5,433,583,327
Capitalisation of Interest 309,184,127 668,667,381
11,211,924,348 9,144,197,608
Repaid Deposits (5,242,547,096) (3,788,119,165)
Less: Investment in Fixed Deposits in Subsidiary (16,354,251) (126,438,525)
Balance at the End of the Period 5,953,023,001 5,229,639,918
Payable within One Year 5,148,467,467 4,813,246,014
Payable after One Year 804,555,534 411,393,904
Deposit Classification
Fixed Deposits at Amortised Cost 5,899,267,301 5,161,466,477
Saving Deposits 53,755,700 68,173,441
5,953,023,001 5,229,639,918
35.2 Derivative Financial Liabilities/(Assets)

Fair Value of Cross Currency interest SWAP (85,648,063) 8,337,510 (85,648,063) 8,337,510
252 5 13 25 35
During 2017/18 Period Company has entered into a borrowing contract with Standard Chartered Bank (Mauritius) Limited to
borrow a USD 10 million at an interest rate of 3 Months LIBOR+3.5%. In order to mitigate the currency and interest rate risks,
company has entered to a separate cross currency interest rate SWAP with Standard Chartered Bank (Sri Lanka) Limited.
Accordingly the instalments are fixed to be settled Sri Lankan Rupees. Derivative financial liabilities include the fair value of cross
currency SWAP as at 31st March 2019. The resultant fair value of the cross currency interest SWAP is accounted as a derivative
assets in these financial statements.
Derivative liabilities include the fair value of cross currency SWAP as at 31st March 2019.
36. Financial Instruments

Financial Risk Management
Overview
The Group has exposure to the following risks from its use of financial instruments:
Credit Risk
Liquidity Risk
Market Risk
Operational Risk
The note presents information about Group’s exposure to each of above risks, the Group’s objectives, policies and processes
measuring and managing risk and the Group’s management of capital. Further quantitative disclosures are included throughout
these Consolidated Financial Statements.
Risk Management Framework

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework.
The Group’s risk management policies are established to identify and analyse the risk faced by the Group, to set appropriate
risks limits and controls and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.
The Board of Directors oversees how management monitor compliance with the Group’s risk management policies and
procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The
Company’s Directors are assisted in their oversight role by internal audit. Internal audit undertakes both regular and ad hoc
reviews of the risk management controls and producers, the result of which are reported to the Company’s Directors.
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer of counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the Group’s trade and other receivables.
Treasury Bills
Singer Finance (Lanka) PLC invests not less than 7.5% of the public deposits in Treasury Bills to comply with the Central Bank of
Sri Lanka Direction No. 1 of 2009.
Trade and Other Receivables

The Group’s exposure to credit risk relates to sale of products on instalment credit/hire purchase which is an integral part of the
business of the Group.
The Group’s exposure to credit risk on instalment credit/hire purchase contracts is influenced mainly by the individual
characteristics of each customer. The demographics of the Group’s customer base, including the default risks of the
country in which customers reside, has a lesser influence on credit risk.
101 271 253
INFORMATION
Geographically, there is no concentration of credit risk. Goods are sold, subject to collateral undertakings so that in the event
of non-payment, the Group can have a secured claim. The Group establishes an allowance for impairment that represents its
estimate of incurred losses in respect of trade and other receivables and investments. The main components of this allowance
are a specific loss component that relates to individually significant exposure and a collective loss component established for
groups of similar assets in respect of losses that have been incurred but not yet identified.
Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’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 Group’s reputation.
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s
income. The objective of market risk management is to manage and control market risk exposure within the acceptable
parameters, while optimising the return.
Currency Risk
The Group is exposed to currency risk on purchases that are denominated in a currency other than the respective financial
currencies of Group entities. The currency in which these transactions primarily are denominated in US Dollars. The currency
risk is limited by the short-term nature of the period between the dates of the purchase and settlements of the related liability.
Interest Rate Risk

The Group manages interest rate risk on borrowings by using a combination of fixed and floating interest rate.
Operational Risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Group’s processes,
personnel, technology and infrastructure and from external factors other than credit, market and liquidity risks such as those
arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise
from all Group’s operations.
The Group’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the
Group’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity
The primary responsibility for the development and implementation of controls to address operational risks is assigned to Senior
Management within each business unit. This responsibility is supported by the development of overall Group standards for the
managements of operational risk in the following areas:
zz Requirements for the appropriate segregation of duties, including the independent authorisation of transactions.
zz Requirements for the reconciliation and monitoring of transactions.
zz Compliance with regulatory and other legal requirements.
zz Documentation of controls and procedures.
zz Requirements for the periodic assessment of operational risks faced and the adequacy of controls and procedures to address
the risks identified.
zz Requirements for the reporting of operational losses and proposed remedial action.
zz Development of contingency plans.
zz Training and professional development.
zz Ethical and business standards.
zz Risk mitigation, including insurance where this is effective.
Compliance with Group standards is supported by a programme of periodic reviews undertaken by internal audit. The results of
internal audit reviews are discussed with the management of the business unit to which they relate, Senior Management of the
Group and the Board of Directors.
254 5 13 25 35
Credit Risk
Exposure to Credit Risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
Reporting date was:
Carrying Amount – Consolidated Carrying Amount – Company

Rs. Rs. Rs. Rs.
Trade and other Receivables 34,150,467,520 29,848,202,484 14,292,623,480 13,483,953,379

Cash at Bank 1,849,642,830 1,339,006,740 1,337,712,692 1,017,627,946
Amounts due from Related Parties – 788,000 3,310,666 185,396,027
Loans due from Related Parties – – 1,215,819,977 1,219,150,767
Other Financial Assets 726,081,693 688,443,940 928,292,652 3,854,332,314
Deposits at Bank 83,323,971 81,504,012 – –
36,809,516,014 31,957,945,176 17,777,759,467 19,760,460,433
The Maximum exposure to credit risk for receivables at the reporting date by type of counterparty was:
Carrying Amount – Consolidated Carrying Amount – Company

Rs. Rs. Rs. Rs.
Retail Customers 25,490,171,209 21,818,380,977 7,641,386,622 7,451,947,830

Wholesale Customers 5,053,251,844 5,361,912,649 3,724,753,008 3,979,170,189
Others 3,607,044,467 2,667,908,857 2,926,483,851 2,052,835,360
Total 34,150,467,520 29,848,202,483 14,292,623,480 13,483,953,379
Impairment Analysis
The aging of receivables at the Reporting date:
Group As at 31st March 2019 As at 31st March 2016

Gross Impairment Net Receivable Gross Impairment Net Receivable
Not Past due 23,168,391,826 (197,247,975) 22,971,143,851 14,765,214,878 – 14,765,214,878
Past due 0-30 Days 4,999,720,394 (142,998,749) 4,856,721,645 4,609,373,702 (11,994,276) 4,597,379,426
Past due 31-120 Days 4,178,363,059 (221,406,838) 3,956,956,221 9,831,177,826 (112,743,713) 9,718,434,113
Past due more than 120 Days 4,151,578,886 (1,785,933,083) 2,365,645,803 1,962,070,908 (1,194,896,842) 767,174,066
Total 36,498,054,165 (2,347,586,647) 34,150,467,520 31,167,837,314 (1,319,634,831) 29,848,202,484

101 271 255
INFORMATION
Company As at 31st March 2019 As at 31st March 2018

Gross Impairment Net Receivable Gross Impairment Net Receivable
Not Past due 12,115,787,669 (184,996,111) 11,930,791,558 4,324,534,873 – 4,324,534,873
Past due 0-30 Days 938,809,693 (45,780,584) 893,029,109 2,230,705,807 (11,903,850) 2,218,801,957
Past due 31-120 Days 1,176,147,691 (118,910,367) 1,057,237,324 3,426,993,657 (107,493,355) 3,319,500,302
Past due more than 120 Days 1,715,643,821 (1,304,072,331) 411,571,490 4,454,862,239 (833,745,992) 3,621,116,247
Total 15,680,955,734 (1,653,759,397) 14,292,629,480 14,437,096,576 (953,143,197) 13,483,953,379
The movement in the allowance for impairment in respect of receivables during the year was as follows:
Rs. Rs. Rs. Rs.
Balance at the Beginning of the Period 1,319,634,831 847,624,904 953,143,197 641,085,725

Impact of Adopting SLFRS 9 “Financial instruments” 374,801,748 – 246,074,606 –
Impairment Loss Recognised 790,699,290 652,643,612 474,683,286 422,183,787
Amounts Written-off (137,549,222) (180,633,685) (20,141,692) (110,126,315)
Balance at the End of the Period 2,347,586,647 1,319,634,831 1,653,759,398 953,143,197
Total impairment for the period resulted from following counterparties.
Group Company
Rs. Rs. Rs. Rs.
Impairment for Hire Debtors 93,432,380 64,886,178 84,856,215 53,096,143

Impairment for Lease Rental Receivables 248,345,208 126,311,107 – –
Impairment for Loan Debtors 323,203,252 168,104,070 – –
Impairment for Trade Debtors 758,362,703 293,771,484 645,981,951 234,945,963
Impairment for Other Debtors 924,243,104 666,561,993 922,921,232 665,101,091
Total 2,347,586,648 1,319,634,831 1,653,759,398 953,143,197
A committee respective functional managers groups established a credit policy under which each new customer is analysed
individually for credit worthiness before the Group’s standard payment and delivery terms and conditions offered for wholesale
customers, sale limits are established for each customer and reviewed periodically. Any sales exceeding these limits require
approvals from Directors based on amount enhanced.
The Group establishes an allowance for impairment that represent its estimate of incurred losses in respect of trade and
other receivables.
All bank deposits and current accounts maintained at licensed commercial banks, which are subject to close supervision of Central Bank.
All related party receivables are from Subsidiary companies which are controlled by the same Board of Directors of
Singer (Sri Lanka) PLC.
256 5 13 25 35
Liquidity Risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact
of netting agreements:
Group
31st March 2019 Carrying Contractual 6 Months or 6-12 1-2 2-5 More than
Amount Cash Flows Less Months Years Years 5 Years
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Non-Derivative
Secured bank loans 2,135,101,795 2,445,118,576 1,784,956,584 114,268,056 335,795,544 210,098,392 –
Unsecured bank loans 23,616,600,427 23,263,862,358 10,772,384,092 5,023,751,604 5,083,515,428 2,384,211,233 –
Unsecured Debenture
issues 653,554,271 853,516,099 39,515,967 39,300,033 774,700,099 – –
Secured Debenture issues 1,581,562,115 1,959,194,435 167,092,972 692,069,255 1,100,032,208 – –
Bank overdraft 2,916,428,154 2,916,428,154 2,916,428,154 – – – –
Securitisation 1,874,119,040 2,176,654,310 433,024,310 372,141,600 1,371,488,400 – –
Trade and Other Payables 7,321,038,197 7,321,038,197 7,321,038,197 – – – –
Public Deposits 5,953,023,001 6,827,313,671 4,140,592,184 1,785,099,672 537,648,464 349,373,747 14,599,604
Total 46,051,427,000 47,763,125,800 27,575,032,460 8,026,630,220 9,203,180,143 2,943,683,372 14,599,604
Derivative Financial
Liabilities
Interest Rate SWAP (85,648,063) (85,648,063) – (85,648,063) – – –
Total (85,648,063) (85,648,063) – (85,648,063) – – –
Non-Derivative
Secured Bank Loans 1,312,300,000 1,317,724,996 955,424,996 75,000,000 75,000,000 212,300,000 –
Unsecured Debenture
issues 4,483,352,339 4,772,302,590 2,673,505,135 2,098,797,455 – – –
Secured Debenture
issues 2,500,000,000 2,567,378,286 67,378,286 – 409,300,000 2,090,700,000 –
Bank overdraft 2,132,691,242 2,132,691,242 2,132,691,242 – – – –
Public Deposits 5,229,639,918 5,356,078,444 3,573,003,590 1,379,223,153 279,720,244 111,990,210 12,141,247
Total 38,877,520,150 40,645,408,978 23,785,940,247 10,763,731,699 2,007,551,714 4,076,044,071 12,141,247
Derivative Financial Liabilities

Interest Rate SWAP 8,337,510 8,337,510 – 8,337,510 – – –
Total 8,337,510 8,337,510 – 8,337,510 – – –

101 271 257
INFORMATION
Company
Non-Derivative Financial Liabilities

Unsecured Debenture
issues 653,554,271 853,516,099 39,515,967 39,300,033 774,700,099 – –
Bank overdraft 1,417,088,608 1,417,088,608 1,417,088,608 – – – –
Total 27,171,807,929 29,621,117,264 16,315,638,867 5,063,051,637 5,858,215,527 2,384,211,233 –

Interest Rate SWAP (85,648,063) (85,648,063) – (85,648,063) – –
Total (85,648,063) (85,648,063) – (85,648,063) – – –
Non-Derivative Financial Liabilities

Unsecured Bank Loans 11,707,742,249 12,829,049,278 5,723,593,430 4,200,870,517 1,243,531,470 1,661,053,861
Unsecured Debenture
issues 4,991,435,763 5,255,895,879 3,157,098,424 2,098,797,455 – – –
Bank Overdraft 1,237,088,725 1,237,088,725 1,237,088,725 – – – –
Total 23,939,969,831 25,325,736,976 16,121,483,673 6,299,667,972 1,243,531,470 1,661,053,861

Interest Rate SWAP 8,337,510 8,337,510 – 8,337,510 – – –
Total 8,337,510 8,337,510 – 8,337,510 – – –
The outflows disclosed in the above table represent the contractual undiscounted cash flows relating to non-derivative financial
liabilities held for risk management purposes and which are not closed out before contractual maturity.
Market Risk
Currency Risk
The summary quantitative data about the Group’s exposure to currency risk as reported to the management of the Group is as
follows.

USD CNY EURO USD CNY EURO
Trade Payables 11,381,413 2,027,261 1,028 17,178,724 1,535,074 17,914

Net Exposure 11,381,413 2,027,261 1,028 17,178,724 1,535,074 17,914
* USD – United States Dollars

* CNY – Chinese Yuan
* Euro – EU Euro
258 5 13 25 35
The following significant exchange rates have been applied:
Average Rate Period End Sopt Rate

As at As at
2019 2018 31st March 2019 31st March 2018
USD 178.42 152.92 176.13 155.97

CNY 26.14 23.26 26.27 21.92
Euro 201.67 163.8 197.80 192.22
Sensitivity Analysis
A reasonably possible strengthening (weakening) of the USD, CNY or EURO against all other currencies at reporting date would
have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss
by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and
ignores any impact of forecast sales and purchases.
Profit or Loss Equity net of Tax

Strengthening Weakening Strengthening Weakening
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
2019
USD (5% Movement) (100,230) 100,230 (72,166) 72,166
CYN (5% Movement) (2,663) 2,663 (1,917) 1,917
EURO (5% Movement) (10) 10 (7) 7
2018
USD (5% Movement) (133,968) 133,968 (96,457) 96,457
CYN (5% Movement) (1,683) 1,683 (1,212) 1,212
EURO (5% Movement) (172) 172 (124) 124
Interest Rate Risk

Profile
At the Reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:
Group Company
As at 31st March As at 31st March As at 31st March As at 31st March
2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Fixed Rate Instruments

Financial Assets 25,490,171,209 21,818,381,007 8,553,476,622 8,364,037,830
Financial Liabilities (29,989,255,113) (21,813,982,972) (20,643,789,326) (15,098,282,249)
(4,499,083,904) 4,398,035 (12,090,312,704) (6,734,244,419)
Variable Rate Instruments

Financial Assets – – – –
Financial Liabilities – (1,609,460,000) – (1,609,460,000)
– (1,609,460,000) – (1,609,460,000)
101 271 259
INFORMATION
Cash Flow Sensitivity for Variable Rate Instruments

A reasonably possible change of 100 basis points in interest rate at the reporting date would have increased (Decreased) equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant:
Profit or Loss Equity Net of Tax

1% Increase 1% Decrease 1% Increase 1% Decrease
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
31st March 2019

Variable Rate Instruments – – – –
Cash Flow Sensitivity (Net) – – – –
31st March 2018

Variable Rate Instruments (16,094) 16,094 (11,587) 11,587
Cash Flow Sensitivity (Net) (16,094) 16,094 (11,587) 11,587
Fair Values
Fair Values Versus Carrying Amounts
The fair values of financial assets and liabilities, together with the carrying amounts in the Balance Sheet, are as follows:
Group
31st March 2019` Financial Financial Financial Other Total Carrying Fair Value Fair Value
Assets/ Assets/ Liabilities at Financial Value Measurement
Liabilities at Liabilities at FVTPL Liabilities Level
FVOCI amortised
cost
Note Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Investment in Equity Securities 15.1 17,061,300 17,061,300 Level 2
Derivatives 85,648,063 85,648,063 Level 2
Hire Debtors 18 7,655,970,520 7,655,970,522 –
Lease Debtors 18 13,950,248,514 13,950,248,513 –
Loan Debtors 18 3,883,952,175 3,883,952,174 –
Trade Debtors 18 5,053,251,844 5,053,251,844 –
Other Debtors 18 3,607,044,467 3,607,044,467 –
Cash and Cash Equivalents 20.1 1,849,642,830 1,849,642,830 –
Investment in Treasury Bills 15.2 623,372,330 623,372,330 – Level 2
Deposits with Banks 83,323,971 83,323,971 –
Total 17,061,300 36,706,806,651 85,648,063 – 36,809,516,014 –
Debentures 25.2 – – – 2,235,116,386 2,235,116,386 –
Bank Loans 25.3 – – – 25,751,702,222 25,751,702,222 –
Bank Overdraft 20.2 – – – 2,916,428,154 2,916,428,154 –
Trade and Other Payables 29 – – – 7,321,038,197 7,321,038,197 –
Dividend Payable 32 – – – 88,496,948 88,496,948 –
Amounts due to Related Parties 34 – – – 256,020,866 256,020,866 –
Deposits from Customers 35 – – – 5,148,467,467 5,148,467,467
Total 43,717,270,240 43,717,270,240

260 5 13 25 35
Group
31st March 2018 Note Available- Loans and Financial Other Financial Total Fair Fair Value
for-Sale Receivables Assets/ Liabilities Carrying Value Value Measurement
Liabilities Level
at FVTPL
Investment in Equity Securities 15.1 17,061,300 – – – 17,061,300 17,061,300 Level 2

Hire Debtors 18 – 7,534,792,738 – – 7,534,792,738 –
Lease Debtors 18 – 11,383,225,322 – – 11,383,225,323 –
Loan Debtors 18 – 2,900,362,916 – – 2,900,362,916 –
Trade Debtors 18 – 5,361,912,649 – – 5,361,912,649 –
Other Debtors 18 – 2,667,908,857 – – 2,667,908,857 –
Amounts due from
Related Parties 19 – 788,000 – – 788,000 –
Cash and Cash Equivalents 20.1 – 1,339,006,740 – – 1,339,006,740 –
Investment in Treasury Bills 15.2 – 671,382,640 – – 671,382,640 671,382,640 Level 2
Deposits with Banks – 81,504,012 – – 81,504,012 –
Total 17,061,300 31,940,883,875 – – 31,957,945,175 –
Derivatives 8,337,510 8,337,510 8,337,510 Level 2
Debentures 25.2 – – – 6,983,551,005 6,983,551,005 –
Bank Loans 25.3 – – – 16,418,864,972 16,418,864,972 –
Bank Overdraft 20.2 – – – 2,132,691,242 2,132,691,242 –
Trade and Other Payables 29 – – – 8,112,971,679 8,112,971,679 –
Dividend Payable 32 – – – 220,838,973 220,838,973 –
Amounts due to Related Parties 34 – – – 389,037,813 389,037,813
Deposits from Customers 35 – – – 5,229,639,918 5,229,639,918
Total – – 8,337,510 39,487,595,602 39,495,933,112 –
Company
Note Financial Financial Financial Other Total Carrying Fair Value Fair Value
Assets/ Assets/ Assets/ Financial Value Measurement
Liabilities at Liabilities at Liabilities at Liabilities Level
31st March 2019 FVOCI amortised FVTPL
cost
Investment in Equity Securities

15.1 17,020,000 17,020,000 17,020,000 Level 2
Investment in Debentures 15.1 912,090,000 912,090,000
Derivatives 85,648,063 85,648,063
Loans due from Related Parties 17 1,215,819,977 1,215,819,977
Hire Debtors 18 7,641,386,622 7,641,386,622
Trade Debtors 18 3,724,753,008 3,724,753,008
Other Debtors 18 2,926,483,851 2,926,483,851
Amounts due from Related Parties 19 3,310,666 3,310,666
Cash and Cash Equivalents 20.1 1,337,712,692 1,337,712,692
Total 17,020,000 16,849,466,816 85,648,063 17,864,224,879 –
101 271 261
INFORMATION
Company
Note Financial Financial Financial Other Total Carrying Fair Value Fair Value
Assets/ Assets/ Assets/ Financial Value Measurement
Liabilities at Liabilities at Liabilities at Liabilities Level
31st March 2019 FVOCI amortised FVTPL
cost
Debentures 25 653,554,271 653,554,271
Bank Loans 25 19,986,989,326 19,986,989,326
Bank Overdraft 20.2 1,417,088,608 1,417,088,608
Trade and Other Payables 29 5,114,175,724 5,114,175,724
Dividend Payable 32 49,212,196 49,212,196
Amounts due to Related Parties 34 2,762,311,876 2,762,311,876
Total – – 29,983,332,001 29,983,332,001 –
Company
Note Available- Held-to- Loans and Financial Other Financial Total Carrying Fair Fair Value
for-Sale Maturity Receivables Liabilities at Liabilities Value Value Measurement
FVTPL Level
31st March 2018 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Investment in Equity
Securities 15.1 17,020,000 – – – – 17,020,000 17,020,000 Level 2
Investment in
Debentures 15.1 – 912,090,000 – – – 912,090,000 –
Loans due from

Related Parties 17 – – 1,219,150,767 – – 1,219,150,767 –
Hire Debtors 18 – – 7,451,947,830 – – 7,451,947,830 –
Trade Debtors 18 – – 3,979,170,189 – – 3,979,170,189 –
Other Debtors 18 – – 2,052,835,360 – – 2,052,835,360 –
Amounts due from

Related Parties 19 – – 185,396,027 – – 185,396,027
Cash and Cash

Equivalents 20.1 – – 1,017,627,946 – – 1,017,627,946
Total 17,020,000 912,090,000 15,906,128,119 – – 16,835,238,119 –
Derivatives 8,337,510 – 8,337,510 8,337,510 Level 2
Debentures 25 – – – – 4,991,435,763 4,991,435,763 –
Bank Loans 25 – – – – 11,707,742,249 11,707,742,249 –
Bank Overdraft 20.2 – – – – 1,237,088,725 1,237,088,725
Trade and Other

Payables 29 – – – – 6,003,703,094 6,003,703,094 –
Dividend Payable 32 – – – – 166,754,628 166,754,628 –
Amounts due to
Related Parties 34 – – – – 3,012,216,978 3,012,216,978 –
Total – – – 8,337,510 27,118,941,437 27,127,278,947 –
Where ever the assets and liabilities are not fair valued, it was assume that the caring value of such assets and liabilities are a
reasonable approximation to this fair value as majority of such assets and liabilities are with shorter maturity periods.
262 5 13 25 35
(I) Fair Value Versus Carrying Amounts

The following table show the valuation techniques used in measuring Level 2 fair values, as well as significant unobservable
inputs used:
Type Valuation Technique Significant Unobservable Inputs
Treasury Bills Discount Cash Flows Forecasted Annual Cash Inflows and Outflows
Derivative The fair value is calculated as the present Not Applicable
value of the estimated future cash flows.
Estimates of future floating-rate cash flows
are based on forward interest ratio and
forward currency rates. Estimated cash
flows are discounted using a yield curve
constructed from similar sources.
Capital Management
The Board’s policy is to maintain a strong capital base to maintain confidence of the investors, creditors and the market while
sustaining future development of the business capital consists to total equity. The Board of Directors monitors the return on
capital as well as the level of dividends to ordinary shareholders.
The Board of Directors seeks to maintain a balance between higher returns facilitated through a higher level of borrowings and
the benefits and security afforded by a sound capital position.
The Capital Structure of the Group consists of debt and equity of the Group. The capital structure of the Group is reviewed by the
Board of Directors.
The Group monitors capital using the ratio of net debt to equity. For this purpose adjusted net debt is defined as total liabilities
comprising interest bearing loans and borrowings and obligation under finance leases, less cash and cash equivalents.
Group Company
Rs. Rs. Rs. Rs.
Total Borrowings 39,000,777,922 30,958,836,530 22,167,331,321 17,953,168,484

Less: Cash and Cash Equivalents (1,849,642,830) (1,339,006,740) (1,337,712,692) (1,017,627,946)
Adjusted Net Borrowings 37,151,135,092 29,619,829,790 20,829,618,629 16,935,540,538
Total Equity 8,451,643,776 8,184,568,509 4,635,982,237 4,799,691,875
Net Debt to Equity Ratio 4 4 4 4
The Regulatory Capital requirements for the Finance Companies are set by the Central Bank of Sri Lanka. The details of the
computation of risk weighted assets, capital and the ratios of the Singer Finance PLC are given below:
Capital Adequacy
Capital adequacy is a measure of financial institutions financial strength and stability. This widely accepted concept tries to
specify the limit up to which a business can expand in terms of its risk – weighted assets. Finance companies in pursuit of
business expansion, could engage themselves in activities that regularly change their risk profile. In light of this, regulatory
capital requirements have been established to avoid undue expansion beyond specified limits keeping a hold on companies’
exposure to risk. Capital serves as a comfort to absorb unexpected losses, providing a degree of security to depositors and
other key stakeholders.
101 271 263
INFORMATION
This measure has been introduced by the Central Bank of Sri Lanka to protect the interest of the various stakeholders of the
Company while ensuring the maintenance of confidence and stability of the financial system.
The capital adequacy ratio is calculated as a percentage on company’s capital to its risk weighted assets as specified by the
direction No 03 of 2018 with the effect from 1st July 2018 . Previously, Capital Adequacy ratio was computed based on the
Direction No.02 of 2006 and by the circular issued by the Central Bank of Sri Lanka dated 15/03/2017.
Based on the Direction No. 03 of 2018 the Listed Finance Companies which are having asset base less than 100 Billion need to
be have minimum Core Capital Ratio (Tier-I) of 6% and 10% based on the Total Capital Ratio (Tier-II). This minimum requirement
will increase to 6.5% and 10.5% respectively with the effect from 1st July 2019.
The core capital represents the permanent shareholders’, equity and reserves created or increase by appropriations of retained
earnings or other surpluses and the total capital includes in addition to the core capital, the revaluation reserves, general
provisions and other hybrid capital instruments and unsecured subordinated debts.
The Risk Weighted Assets have been calculated by multiplying the value of each category of asset using the risk weight
specified by the Central Bank of Sri Lanka.
Details of the computation and the resulting rations are given below:
Balance Risk-Weighted Balance
As at As at Risk-Weighted 2019 2018
31st March 2019 31st March 2018 Factor
Rs. Rs. % Rs. Rs.
Assets
Risk Weighted Amount for Credit Risk
Notes and Coins 99,120,778 – 0 – –
Cash Items in the Process of Collection 186,977,852 – 20 37,395,570 –
Fixed Assets 221,000,510 – 100 221,000,510 –
Other Assets/Exposures 518,006,872 – 100 518,006,872 –
Investment in Government Securities 623,372,330 – 0 – –
Bank deposits 83,323,970 – 20 16,664,794 –
Retail claims in respect of motor vehicles and

machinery 7,935,770,584 – 100 7,935,770,584 –
Claims Secured by Gold

Outstanding claim portion up to 70% of the
market value 145,163,225 – 0 – –
Remaining outstanding claim portion over 70%

of the market value 5,714,871 – 100 5,714,871 –
Other retail claims 9,964,474,589 – 125 12,455,593,236 –
Other Non-Performing Assets

Specific provisions are equal or more than 20% 358,797,879 – 100 358,797,879 –
264 5 13 25 35
Balance Risk-Weighted Balance

As at As at Risk-Weighted 2019 2018
31st March 2019 31st March 2018 Factor
Rs. Rs. % Rs. Rs.
Total Risk-Weighted Assets

Computation
Cash and Bank Balance – 295,702,611 0 – –
Investment in Government Securities – 671,382,400 0 – –
Bank deposits – 81,504,012 20 – 16,300,802
Loans against fixed deposits – 42,550,184 0 – –
Staff Loans Secured by Provident Fund

Balances – 74,962,608 0 – –
Loans against Real Estate – 86,415,980 50 – 43,207,990
Loans and advances – 3,943,771,917 100 – 3,943,771,917
Finance lease receivable – 11,294,077,299 100 – 11,294,077,299
Hire purchase receivable – 74,762,408 100 – 74,762,408
Other assets – 323,859,164 100 – 323,859,164
Fixed assets – 170,007,501 100 – 170,007,501
Total Risk – Weighted Assets 20,141,723,461 17,058,996,084 21,548,944,316 15,865,987,082
Risk Weighted Amount for Operational

Risk
Interest Income 2,918,214,497 – 15 437,732,175 –
Interest Expenses (1,296,290,577) – 15 (194,443,587) –
Non-interest income 445,271,279 – 15 66,790,692 –
2,067,195,199 – 310,079,280 –
Risk-Weighted Amount for operational Risk

under the Basic Indicator Approach 3,100,792,798 –
Total Risk – Weighted Assets 22,208,918,660 17,058,996,084 24,649,737,114 15,865,987,082
Total Capital Base Computation

Stated Capital 1,996,444,457 1,996,444,457
Reserved Fund 136,009,451 113,852,174
Published Retained Earnings 1,202,658,012 986,177,932
Less:-
Other Intangible Assets (net) 46,293,490
Total Core Capital 3,288,818,430 3,096,474,563
Supplementary Capital – –
Total Supplementary Capital – –
Capital Base 3,288,818,430 3,096,474,563

101 271 265
INFORMATION
Capital Adequacy Ratio

As at 31st March 2019 2018
% %
Core Capital Ratio Core Capital

Risk-Weighted Assets 13.34 19.52
Total Capital Ratio Capital Base
Risk-Weighted Assets 13.34 19.52
The previous capital adequacy directions was adopted in 2006 for LFCs in line with the Capital Adequacy Accord recommended
by the Basel Committee on Banking Supervision (BCBS)issued for banks in 1988.Under this direction risks were confined to
credit risk and no capital requirements for other risks such as Market and operational risks. The new capital adequacy framework
covers both credit risk and operational risk. Since the change in the basis and coverage of risks for capital adequacy impacted
the tire one capital and total capital computation drastically, and for the purpose of disclosing the comparable correspondence
figures, the below presentation is also noted.
As at 31st March 2019 2018 2019

Based on Direction Based on Direction Based on Direction
No. 03 of 2018 No. 03 of 2018 No. 02 of 2006
Core Capital Ratio 13.34% 16.04% 19.52%

Total Capital Ratio 13.34% 16.04% 19.52%
37. Commitments and Contingencies – Group/Company

37.1 Financial Contingencies
Documentary Credits effected for foreign purchases amounting to Group and Company respectively Rs. 1,723,258,909/-
(2018 – Rs.4,511,447,444/-) and Rs.1,392,145,399/- (2018 – Rs.2,504,862,843/-)
37.2 Commitments
There were no significant capital commitments which have been approved or contracted for by the Company/Subsidiary as at
Reporting date except for following:

Operating lease commitment as at 31st March 2019 is as follows:
Within One Year – Rs. 149.06 million
Between One to Five Years – Rs. 446.85 million
Over Five Years – Rs. 358.24 million
As at 31st March 2019, unutilised credit card credit limit is Rs. 268,073,446/- (2018 – Rs. 722,821,725/-) of Singer Finance
(Lanka) PLC.
As at 31st March 2019, unutilised Revolving loan facility amount is Rs. 296,662,710 (2018 – Rs. 71,561,460/-) of Singer
Finance (Lanka) PLC.
37.3 Assets Pledged

Singer (Sri Lanka) PLC has given a negative pledge over the bank loans obtained from commercial bank of Ceylon PLC,
Standard Chartered Bank Sri Lanka Limited, Sampath Bank PLC and Hatton National Bank PLC which has carrying value of
Rs,4,875,000,000 /-, Rs.641,666,670/-, Rs. 2,750,000,000/- and Rs.2,500,000,000/- respectively as at 31 March 2019.
Singer Finance (Sri Lanka) PLC has given the Securitization and negative pledge over the Company’s Lease receivable and
Hire Purchase receivable, for the following banks over the Loans, Overdrafts & Debentures having a carrying value of Rs.
11,131,477,000/- against Loans, Overdraft & Trust Deed obtained to the value of Rs. 8,620,640,000/- respectively, as at the
year end:
266 5 13 25 35
As at 31st March Outstanding Carrying

Credit Facility Value
Rs. Rs.
Sampath Bank 130% of the Banks’s exposure Loan 392,900,000

Overdraft Facility 300,000,000 935,415,000
Commercial Bank 150% of the Banks’s exposure Overdraft Facility 200,000,000 300,000,000
Seylan Bank 130% of the Banks’s exposure Loan 502,740,000

Overdraft Facility 250,000,000 978,562,000
Nations Trust Bank 130% of the Banks’s exposure Loan 930,000,000

Overdraft Facility 70,000,000 1,300,000,000
National Development 130% of the Banks’s exposure Loan 200,000,000

Bank Overdraft Facility 100,000,000 390,000,000
Deutsche Bank 110% of the Debenture Debenture
explosure 2,500,000,000 3,100,000,000
Hatton National Bank 130% of the Banks’s exposure Securitisation 2,175,000,000 2,827,500,000
8,620,640,000 9,831,477,000
37.4 Contingencies
(a) Commissioner General of Inland Revenue has issued assessment notices on Singer (Sri Lanka) PLC pertaining to an
additional VAT Liability/Payment on account of Deemed VAT for seven quarters for the period 1st January 2014 to 30th
September 2015. The assessment was for a Deemed VAT payment of Rs. 1,076 million and Penalty of Rs. 423 million totalling
to Rs. 1,499 million. Commissioner General of Inland Revenue has given the determination on the appeal. Accordingly, Rs.
791 million of Deemed VAT liability and penalty of Rs. 395 million totalling to Rs. 1,186 million is payable as a Deemed VAT
liability for seven quarters for the period 1st January 2014 to 30th September 2015. The Company after carefully reviewing
the advice of tax consultants, is of the opinion that there is no basis for the Company to be made liable for Deemed VAT
and accordingly company has decided to appeal to the Tax Appeal Commission against the determination. Hence, no
provision has been made in the Financial Statements. The Company previously sought a clarification from the Inland Revenue
Department on the interpretation of the Act and did not receive the required clarification. Deemed VAT is removed with effect
from 1st January 2016 under VAT Amendment Act No. 20 of 2016.
(b) Singer (Sri Lanka) PLC has provided bank guarantees amounting to Rs.287 million to Director General of Customs to clear
imports during the years 2008 to March 2019. The bank guarantee related to alleged additional duty payable on imports,
claimed by the customs and is being contested by the company in courts. The Court of Appeal ordered that the Director
General of Customs continue with the investigations. The Company being aggrieved by the decision has filed an appeal,
which is pending before the Supreme Court. The company lawyers are of the opinion that there is no basis that the Company
is liable for the additional duty and hence, no provision is made in the Financial Statements. .
(c) Under the finance companies (single borrowers limit) direction no 4 of 2006/1, the value of unsecured accommodations
granted to and outstanding at any point of time from all borrowers should not exceed 5% of the capital funds as shown in
the last audited balance sheet. However as of 31st March 2019, the balance has been exceed in the credit card product by
Rs. 363 million.
(d) Singer Finance (Lanka) PLC has provided letters of guarantees to banks totalling to Rs. 1 million against Fixed Deposits of
Rs.1 million.
(e) Regnis Lanka PLC has provided Corporate guarantees to banks on behalf of Regnis Appliances (Pvt) Ltd amounting to
Rs. 410 million for the purpose of obtaining banking facilities.
(f) Regnis Lanka (Pvt) Limited cleared a shipment of imported goods during the year 2008 on provision of a bank guarantee
amounting to Rs. 6 million/- to the Director of Customs. The bank guarantee relates to alleged additional duty payable on
imports which is contested by the Company. The customs inquiry initiated in 2008 is still pending. The management is of
the opinion that there is no basis that the Company is liable for the additional duty and hence, no provision is made in the
financial statements.
101 271 267
INFORMATION
38. Events Occurring after the Reporting Period

There have been no material events occurring after the reporting date, which require adjustments to or disclosure in the Financial
Statements to or Disclosure in the Financial Statements.
39. Related Party Transactions

39.1 Parent and Ultimate Controlling Party
The Company’s Parent undertaking and Controlling Party is Hayleys PLC.
39.2 (a) Transaction with Parent Company

Hayleys PLC
Name of the Company Nature of Transaction For twelve For fifteen

31 March 2019 31 March 2018
Rs. million Rs. million
Hayleys PLC Expenses Reimbursed 30.7 9.1

Dividends Paid 169.8 186.2
Balance Payable 200.5 195.3
On 15th October 2018, Hayleys PLC purchased the balance 35,562,883 (9.47%) ordinary shares held by Retail Holdings
(Sri Lanka) BV in Singer (Sri Lanka) PLC at a price of Rs. 47/- per share upon Retail Holdings (Sri Lanka) BV exercising their
option to sell its shares to Hayleys PLC as previously agreed. After accepting this offer, Hayleys PLC together with its Group
Companies holds 90.43% (80.9% previously) of Singer (Sri Lanka) PLC.
39.2 (b) Transactions with Subsidiary Companies

31 March 2019 31 March 2018
Singer Finance (Lanka) PLC Sales financed through Singer Finance (Lanka) PLC 733.5 937.1
Cash remittance from Singer ( Sri Lanka ) PLC 3,364.0 4,059.8
Interest Income/(Expense) 170.0 61.9
Dividend Received – Gross 177.7 300.2
Cash Collection through Singer (Sri Lanka) PLC 5,124.0 5,303.4
Debenture Interest Expense 99.4 98.7
Expenses paid 468.5 475.6
Royalty Expenses Charged during the period 42.1 36.6
Collecting Commission paid through Singer (Sri Lanka) PLC 43.0 43.5
Rent Reimbursed 26.5 21.4
Royalty paid through Singer (Sri Lanka) PLC – 29.8
Loans settled during the period 625.0 600.0
Loans Obtained during the period 625.0 1,400.0
Service Charge Income 24.8 22.1
Loan Receivables – 1,000.0
Other Receivables/(Payables) 13.7 172.9
268 5 13 25 35

31 March 2019 31 March 2018
Regnis (Lanka) PLC Purchases 3,766.3 4,859.8

Sales Taxes 653.4 855.6
Corporate Guarantees given 455.5 455.5
Interest Expense 31.3 18.9
Non Trade Settlement 209.5 10.0
Trade Credit Settled 4,162.6 5,550.1
Expenses Reimbursed 84.7 96.6
Fixed Assets Purchases 0.6 1.2
Loans Obtained during the period – 150.0
Transfer of Staff Loan – 0.1
Loan Receivables 150.0 150
Singer Industries (Ceylon) PLC Purchases 526.0 892.3
Lease rental paid 22.5 14.9
Trade Creditor Settled 569.3 889.3
Singer Digital Media (Pvt) Limited Purchases 3,212.8 3,476.2
Interest Charged 203.3 37.0
Royalty paid through Singer (Sri Lanka) PLC 123.0 60.7
Loan Granted 11,635.7 7,625.5
Loan Settlements 11,742.0 4,458.0
Balance Payable – Trade 1,050.9 1,463.4
Regnis Appliances (Pvt) Limited Purchases 1,629.1 1,420.1
Trade Settlements 1,887.5 1,666.4
Expenses paid 16.8 33.6
Finance charged 0.8 1.1
Non-Trade Settlement 21.0 22.7
Reality (Lanka) Limited Rent Expenses 7.7 9.6
Loan Receivable 62.2 69.2
Singer Business School (Pvt) Services Provided 6.35 0.32
Limited
Balance Receivable 8.3 11.6
101 271 269
INFORMATION
39.2 (c) Transactions with Companies under Common Control of Hayleys PLC
31 March 2019 31 March 2018
Hayleys Travels (Pvt) Limited Balance payable – 7.1

Expenses Reimbursed 14.5
Hayleys Electronic Lightning Expenses Reimbursed
(Pvt) Limited 1.1 –
Volanka (Pvt) Limited Dividend Payable 7.5 –
Carbotels (Pvt) Limited Dividend Payable 6.3 21.1
Toyo Cushion (Pvt) Limited Expenses Reimbursed 22.1 –
Hayleys Advantis Limited Dividend Payable 24.1 81.2
Hayleys Aventura (Pvt) Limited Dividend Payable 6.8 23.1
Hayleys Agriculture Holdings Limited Dividend Payable 6.1 20.7
39.2 (d) Transactions with Associate Companies

Telshan Network (Pvt) Limited is an Associated company of Singer (Sri Lanka) PLC, with whom Singer (Sri Lanka) PLC or
its Subsidiary Companies had no transactions. Further, the investment of Rs. 20,000,000/- has been fully impaired due to
negative net assets position.
39.3 Transactions with Key Management Personnel

According to Sri Lanka Accounting Standard (LKAS) 24 – “Related Party Disclosure”, Key Management Personnel are those
having authority and responsibility for planning, directing and controlling the activities of the entity. Accordingly, the Directors
(Including Executive and Non-Executive Directors) of the Company and their immediate family members have been classified as
Key Management Personnel of the Company.
For twelve For fifteen

31 March 2019 31 March 2018
(i) Transactions with Key Management Personnel or Close Family Members

Deposits kept by Key Management Personnel or their Close Family Members at Singer
Finance (Lanka) PLC 57.0 57.0
Group Company
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Rs. million Rs. million Rs. million Rs. million
(ii) Compensation of Key Management Personnel

Short-Term Employee Benefits 108.1 197.6 72.3 136.7
Post-Employment Benefits Paid 40.0 12.4 40.0 12.4
270 5 13 25 35
40. Non-Controlling Interest

The following table summarises the information relating to each of the Group’s subsidiaries that has material NCI.
31st March 2019 Singer Finance Singer Industries Regnis Other individually Total
(Lanka) PLC (Ceylon) PLC (Lanka) PLC immaterial
subsidiaries
Rs. Rs. Rs. Rs. Rs.
NCI Percentage 20.01 12.30 41.7

Non-Current Assets 10,320,797,812 1,475,340,276 1,404,802,424
Current Assets 9,218,270,692 384,366,249 1,551,490,880
Non-Current Liabilities 4,756,285,102 382,469,854 340,320,755
Current Liabilities 11,238,847,877 174,313,129 1,312,606,063
Net Assets 3,543,935,525 1,302,923,542 1,303,366,485 6,150,225,552
Net Assets attributable to NCI 710,913,466 160,259,596 543,503,824
Revenue 3,799,862,979 569,563,309 3,775,421,375
Profit 541,733,895 (5,029,314) 63,904,711
OCI (1,290,192) 183,207,936 113,965,216
Total Comprehensive Income 540,443,703 178,178,621 177,869,928
Profit Allocated to NCI 105,855,772 (617,600) 26,652,252 3,969,067 135,859,492
OCI Allocated to NCI (258,972) 22,497,934 47,530,607 1,494,391 71,263,960
Cash flows from Operating Activities (2,542,934,361) (44,690,625) (102,346,124)
Cash flows from Investment Activities (26,000,520) (6,203,201) (110,326,261)
Cash flows from Financing Activities 2,132,622,715 8,572,226 247,374,447
Net Increase/(Decrease) in Cash and Cash
Equivalents (436,312,166) (42,321,600) 34,702,063
31st March 2018 Singer Finance Singer Industries Regnis Other individually Total
(Lanka) PLC (Ceylon) PLC (Lanka) PLC immaterial
subsidiaries
Rs. Rs. Rs. Rs. Rs.
NCI Percentage 18.7 12.3 41.7

Non-Current Assets 8,061,266,409 1,094,910,644 1,027,137,949
Current Assets 8,070,338,941 389,584,253 1,322,480,391
Non-Current Liabilities 3,312,984,331 51,386,123 270,535,916
Current Liabilities 9,483,509,089 408,316,088 1,040,681,233
Net Assets 3,335,111,930 1,024,792,686 1,038,401,191
Net Assets attributable to NCI 623,979,745 125,846,503 433,078,094 166,209,619 1,349,113,961
Revenue 3,646,695,138 863,950,676 4,871,270,012
Profit 522,789,849 8,706,871 224,641,402
OCI (6,506,346) (233,028,907) (83,836,121)
Total Comprehensive Income 516,283,503 (224,322,036) 140,805,281
Profit Allocated to NCI 97,810,893 1,069,220 93,689,483 (15,957,188) 176,612,408
OCI Allocated to NCI (1,217,299) (28,616,396) (34,964,894) (383,929) (65,182,518)
Cash flows from Operating Activities (2,209,531,117) (3,098,279) 231,421,154
Cash flows from Investment Activities (219,729,676) 4,321,657 (54,116,647)
Cash flows from Financing Activities 2,204,591,667 (72,866,841) (164,070,351)
Net Increase/(Decrease) in Cash and
Cash Equivalents (224,669,126) (71,643,463) 13,234,156
40.1 Share Disposal Note

In the month of August 2018 the company sold 2,754,174 shares of its subsidiary singer finance (Lanka) PLC to general public
for a consideration of Rs. 38.3 million, which has resulted in diluting ownership of company from 81.29% to 79.93%.
101 161 271 271
REPORTS INFORMATION
SUPPLEMENTARY
INFORMATION
THE INFORMATION CONTAINED IN THIS SECTION
CONTAINS EXTRANEOUS DETAILS ABOUT OUR
OPERATIONS. INFORMATION PERTAINING TO
SHAREHOLDERS AND CORPORATE INFORMATION IS
ALSO CONTAINED IN THIS SECTION.
272 273
PARENT, SUBSIDIARIES AND A DECADE IN
RELATED COMPANIES PERSPECTIVE
275 280 282 283

SHARE INDEPENDENT ASSURANCE CERTIFICATE OF THE DIRECTOR/ GLOBAL REPORTING
INFORMATION REPORT PRINCIPAL OFFICER/PRECEDENT INITIATIVES (GRI)
PARTNER ON TRANSFER PRICING STANDARD
DISCLOSURES INDEX
289 291 293 294

DISTRIBUTION SERVICE NETWORK AND GLOSSARY NOTICE OF ANNUAL
NETWORK FASHION ACADEMY NETWORK GENERAL MEETING
272 5 13 25 35
ANNUAL REPORT 2018/19 Supplementary Information
PARENT, SUBSIDIARIES AND

RELATED COMPANIES
Company Name Principal Activity Directors
Hayleys PLC z z Global market and manufacturing, Mr. A.M. Pandithage – Chairman and Chief Executive
Parent Company agriculture, power and energy, Mr. K.D.D. Perera – Co-Chairman
domestic and industrial lighting, Mr. S.C. Ganegoda
transportation and logistics, leisure and Mr. H.S.R. Kariyawasan
aviation, consumer, investments and Dr. H. Cabral
services Mr. L.R.V. Waidyaratne
Mr. M.H. Jamaldeen
Mr. M.Y.A. Perera
Mr. N.L.S. Joseph
Ms. J. Dharmasena
Singer Finance (Lanka) PLC z z Leasing Mr. M.Y.A. Perera – Chairman
Singer – Interest 79.9% z z Hire Purchasing Mr. J.A. Setukavalar
Mr. M.P.A. Salgado
z z Lending and Accepting Deposits
Mr. J.M.J. Perera
Mr. T.A.Amarasuriya
Ms. D.G. Talpahewa
Mr. L.S.S. Perera
Mr. K.K.L.P. Yatiwella – (Alternate to Ms. D.G. Talpahewa)
Singer Industries (Ceylon) PLC z z Manufacturing and Assembling Sewing Mr. A.M. Pandithage – Chairman
Singer – Interest 87.7% Machines Mr. M.H.Wijewardene
Mr. V.G.K. Vidyaratne
Mr. M.H. Jamaldeen
Mr. N.L.S. Joseph
Mr. K.D.G. Gunarathne
Mr. S.C. Ganegoda
Mr. K.D. Kospelawatte
Mr. D.K. de Silva Wijeyeratne
Regnis (Lanka) PLC z z Manufacturing Refrigerators Mr. A.M. Pandithage
Singer – Interest 58.3% Mr. M.H. Wijewardene
Mr. S.C. Ganegoda
Mr. V.G.K. Vidyaratne
Mr. M.H. Jamaldeen
Mr. N.L.S. Joseph
Mr. K.D.G. Gunaratne
Mr. D.K. de S. Wijeyeratne
Mr. A.C. M Irzan (Alternate to K.D. Kospelawatta)
Reality Lanka Limited z z Investment on Properties Mr. A.M. Pandithage – Chairman
Singer – Interest 88.2% (Indirect) Mr. S.C. Ganegoda
Regnis Appliances (Private) Limited z z Manufacturing Washing Machines Mr. A.M. Pandithage – Chairman
Singer – Interest 58.3% (indirect) Mr. K.D. Kospelawatte
Mr. S.C. Ganegoda
Mr. N.M.P. Fernando
Singer Digital Media (Private) Limited z z Marketing
Mobile Phones, Computers Mr. A.M. Pandithage – Chairman
Singer – Interest 100% and Cameras Mr. S.C. Ganegoda
Mr. K.D.J.M. Perera
Singer Business School (Private) Limited z z Educational Services Mr. A.M. Pandithage – Chairman
Singer – Interest 100% Mr. M.H. Wijewardene
Mr. S.C. Ganegoda
Domus Lanka (Pvt) Limited z z Designing, Manufacturing and Trading Mr. A.M. Pandithage – Chairman
Subsidiary – Interest 100% Furniture Mr. M.H. Wijewardene
101 161 273
STEWARDSHIP FINANCIAL
REPORTS
A DECADE IN PERSPECTIVE
Period Ended/As at 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st
March March December December December December December December December December
2019 2018 2016 2015 2014 2013 2012 2011 2010 2009
(12 Months) (15 Months) (12 Months) (12 Months) (12 Months) (12 Months) (12 Months) (12 Months) (12 Months) (12 Months)
(Restated)
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
GDP Growth – % 3.2 3.4 4.1 6.00 7.40 7.30 6.00 8.30 7.00 3.50
Market Capitalisation
Growth – % (37.81) (4.44) (8.48) 17.00 32.50 (13.00) (22.90) 36.10 102.00 123.00
Trading Results
Group Turnover – Net 58,505,395 65,122,305 46,924,144 38,710,834 29,699,602 25,485,561 25,441,494 22,031,653 16,028,534 11,913,503
Profit before Tax 672,129 2,049,052 3,126,233 1,895,275 1,155,608 728,440 1,777,160 1,990,012 1,167,862 247,729
Taxation 286,149 828,758 768,477 659,236 373,974 206,375 561,451 681,181 499,042 114,830
Profit for the Year 385,981 1,220,295 2,357,756 1,236,039 781,634 522,066 1,215,710 1,308,831 668,819 132,899
Total Comprehensive
Income for the Year 1,006,328 691,655 2,623,507 1,206,343 891,279 519,059 1,320,383 1,308,831 – –
Property, Plant & Equipment 6,704,649 5,649,424 5,426,841 2,715,401 2,667,909 2,505,355 2,151,208 1,691,107 1,564,240 1,285,728
Investment in Equity
Accounted Investees – – – 54,831 55,189 53,226 52,663 46,886 23,525 24,541
Other Investments 17,061 17,061 17,061 17,061 17,061 17,061 17,061 17,061 17,061 18,490
Deferred Tax Assets – – 124,061 259,733 185,024 119,022 150,284 143,450 110,226 143,053
Other Non-Current Assets 11,809,824 9,508,817 8,467,619 7,472,596 6,021,845 5,867,311 5,234,046 4,385,767 2,687,281 2,205,263
Total Non-Current Assets 18,531,534 15,175,302 14,035,582 10,404,803 8,947,028 8,561,974 7,605,262 6,284,271 4,402,333 3,677,075
Current Assets 39,510,816 35,398,249 28,214,282 21,857,494 18,444,957 16,000,553 13,795,274 11,164,888 8,477,132 7,176,378
Current Liabilities 35,409,664 35,070,354 22,189,446 15,417,138 15,213,903 13,030,817 12,849,830 10,043,948 6,602,195 6,392,896
Net Current Assets 4,101,153 327,895 6,024,836 6,440,356 3,231,054 2,969,736 945,444 1,120,940 1,874,937 783,482
Total Assets Less Current
Liabilities 22,632,687 15,503,197 20,060,398 16,959,979 12,178,083 11,531,711 8,550,706 7,405,211 6,277,270 4,460,557
Security Deposits 1,388,433 1,199,127 1,018,452 851,794 732,124 651,765 576,648 487,449 403,894 359,516
Interest bearing Loans and
Borrowings re-payable
after one Year 10,640,159 4,319,898 8,381,885 8,091,907 4,226,596 4,334,165 1,633,823 1,110,385 1,287,291 763,936
Employee Benefit
Obligations 871,971 794,645 651,144 486,465 383,912 320,033 270,539 204,787 181,876 158,546
Other Financial Liabilities
re-payable after one Year 804,556 411,394 454,013 645,008 798,492 756,232 342,535 503,142 195,995 150,001
Deferred Tax Liability 246,869 467,236 – 114,820 119,789 109,540 113,926 95,805 99,339 –
Net Assets 8,451,644 8,184,568 9,554,905 6,769,985 5,917,169 5,359,975 5,613,235 5,003,643 4,108,876 3,013,799
274 5 13 25 35
PARENT, SUBSIDIARIES AND
Period Ended/As at 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st
March March December December December December December December December December
2019 2018 2016 2015 2014 2013 2012 2011 2010 2009
(12 Months) (15 Months) (12 Months) (12 Months) (12 Months) (12 Months) (12 Months) (12 Months) (12 Months) (12 Months)
(Restated)
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Share Capital and

Reserves
Stated Capital 626,048 626,048 626,048 626,048 626,048 626,048 626,048 626,048 626,048 626,048
Capital Reserves 1,118,123 577,919 1,057,964 857,580 870,358 762,034 773,312 655,454 664,542 412,127
Statutory Reserves 163,096 136,009 95,361 37,318 136,128 128,447 78,425 44,408 10,748 –
Revenue Reserves 5,035,831 5,495,478 6,374,444 4,728,455 3,842,675 3,447,544 3,778,395 3,421,739 2,583,363 1,975,624
Shareholders’ Funds 6,943,097 6,835,455 8,153,817 6,285,401 5,475,208 4,964,073 5,256,181 4,747,648 3,884,701 3,013,799
Non-Controlling Interest 1,508,546 1,349,114 1,401,088 484,584 441,960 395,902 357,054 255,995 224,174 –
Total Equity 8,451,644 8,184,569 9,554,905 6,769,985 5,917,169 5,359,975 5,613,235 5,003,643 4,108,876 3,013,799
Ratio and Statistics

Profitability
Earning per Share – Rs.* 0.67 2.78 5.65 3.07 1.90 1.23 3.09 3.37 1.78 0.35
Net Assets per Share – Rs.* 18.48 18.20 21.70 16.73 14.58 13.22 14.00 12.64 10.34 8.02
Return on Average Net
Assets – % 4.64 13.76 28.89 19.50 13.90 9.50 22.90 29.30 18.80 4.40
Dividends
Amount – Rs. ’000 244,159 826,383 1,101,845 525,880 313,024 313,024 751,258 939,072 281,722 –
Per Share – Rs. * 0.65 2.20 2.93 1.40 0.83 0.83 2.00 2.50 1.50 –
Cover 0.58 1.21 1.00 1.63 1.48 0.96 1.37 1.20 1.50 –
Others
Market Price per Share – Rs. 25.00 40.20** 126.20 137.90 117.90 89.00 102.30 132.70 195.00 76.50
Price Earnings Ratio 66.81 15.11 14.31 20.10 31.90 36.90 12.50 14.30 18.30 36.10
Annual Sales Growth – % N/A*** 38.78 21.22 30.30 16.50 0.20 15.50 37.30 34.50 (13.30)
Current Ratio 1.12 1.01 1.27 1.40 1.20 1.20 1.10 1.10 1.30 1.10
Average Annual Inflation – % 4.30 4.20 3.75 0.90 3.30 7.30 7.60 6.70 6.90 4.80
Net Income to
Net Turnover – % 0.66 1.87 5.02 3.20 2.60 2.00 4.80 5.90 4.20 1.10
* Information for the previous years have been restated to reflect the subdivision of shares in March 2017.
** Market price per share for 31st March 2018 was after subdivision of shares.
*** Not comparable due to change in financial year in 2017/2018.
101 161 275
REPORTS
SHARE INFORMATION
Stated Capital
Stated Capital (Rs.) : 626,048,050 626,048,050

Number of Ordinary Shares : 375,628,830 375,628,830
Class of Shares : Ordinary Shares
Voting Rights : One Vote per Ordinary Share
Stock Exchange Listing

The issued ordinary shares of Singer (Sri Lanka) PLC are listed with the Colombo Stock Exchange of Sri Lanka.
Distribution of Shareholding – 31st March 2019

Number of Shareholders: 31st March 2019 – 2,713 (31st March 2018 – 2,597).
Resident Non-resident Total

Number of Number of % Number of Number of % Number of Number of %
Shareholders Shares Shareholders Shares Shareholders Shares
1 – 1,000 1,449 390,647 0.10 12 5,457 0.00 1,461 396,104 0.11

1,001 – 10,000 790 3,101,774 0.83 10 37,035 0.01 800 3,138,809 0.84
10,001 – 100,000 387 11,427,788 3.04 10 241,465 0.06 397 11,669,253 3.11
100,001 – 1,000,000 42 9,199,128 2.45 1 196,200 0.05 43 9,395,328 2.50
Over – 1,000,001 12 351,029,336 93.45 – – 0.00 12 351,029,336 93.45
Total 2,680 375,148,673 99.87 33 480,157 0.13 2,713 375,628,830 100.00

Categories of Shares Number of Number of Number of Number of
Shares Shareholders Shares Shareholders
Individuals 30,420,624 2,548 30,233,417 2,432

Institutions 345,208,206 165 345,395,413 165
Total 375,628,830 2,713 375,628,830 2,597
Dividends
Interim Dividend 2018/19 Rs. 0.65 (2017/18 – Rs.2.20)
Final Dividend 2018/19 – Nil (2017/18 – Nil)
276 5 13 25 35
Share Information
Market Value Per Share

Twelve Months Ended Fifteen Months Ended
Rs. Rs.
Highest during the Year 41.00 – 10th April 2018 149.90 – 6th March 2017
Lowest during the Year 24.50 – 12th March 2019 38.50 – 21st February
Last Traded Price as of Period Ending 29th March 2019 25.00 40.20
Twenty Largest Shareholders

As at 31st March 2019
Name Number of Shares %
1. National Savings Bank/Hayleys PLC 85,147,054 22.67

People’s Bank/Hayleys PLC 85,147,053 22.67
Hayleys PLC 50,679,271 13.49
Hatton National Bank PLC/Hayleys PLC 40,293,659 10.73
2. Hayleys Advantis Limited 37,127,660 9.88
3. Volanka (Pvt) Limited 11,595,745 3.09
4. Hayleys Aventura (Private) Limited 10,531,915 2.80
5. Carbotels (Pvt) Limited 9,680,851 2.58
6. Hayleys Agriculture Holdings Limited 9,468,085 2.52
7. Mr. Kulappuarachchige Don Dhammika Perera 6,935,913 1.85
8. Deutsche Bank AG as Trustee for JB Vantage Value Equity Fund 2,492,130 0.66
9. Mrs. Mihiri Virani Fernando 1,930,000 0.51
10. Commercial Bank of Ceylon PLC/Andaradeniya Estate Private Limited 669,849 0.18
11. Mrs. Anoma Kamalika Amarasuriya 536,910 0.14
12. Mr. Nai Kaluge Anura Deepal De Silva 441,582 0.12
13. Ms. Nai Kaluge Ruvani Hemamala De Silva 397,638 0.11
14. Mr. Nalin Amita De Silva 378,978 0.10
15. Jafferjee Brothers (Exports) Limited 375,600 0.10
16. Mr. Abeysiri Hemapala Munasinghe 328,644 0.09
17. Mrs. Enoka Kamali Wickramasinghe 319,857 0.09
18. Mr. Leslie Premal Mendis and Mrs. M.S. Mendis 274,934 0.07
19. Mr. Hemaka Devapriya Senarath Amarasuriya 268,446 0.07
20. Mr. Murtaza Ali Jafferjee 230,600 0.06
355,252,374 94.58
Others 20,376,456 5.42
Total 375,628,830 100
101 161 277
REPORTS
Share Information
As at 31st March 2018

Name Number of Shares %
1. National Savings Bank/Hayleys PLC 85,147,054 22.67

People’s Bank/Hayleys PLC 85,147,053 22.67
Hatton National Bank PLC/Hayleys PLC 40,293,659 10.73
Hayleys PLC 15,116,388 4.02
2. Hayleys Advantis Limited 37,127,660 9.88
3. Retail Holdings (Sri Lanka) 35,562,883 9.47
4. Volanka (Pvt) Limited 11,595,745 3.09
5. Hayleys Aventura (Private) Limited 10,531,915 2.80
6. Carbotels (Pvt) Limited 9,680,851 2.58
7. Hayleys Agriculture Holdings Limited 9,468,085 2.52
8. Mr. Kulappuarachchige Don Dhammika Perera 6,935,913 1.85
9. Deutsche Bank AG as Trustee for JB Vantage Value Equity Fund 2,492,130 0.66
10. Mrs. Mihiri Virani Fernando 1,890,000 0.50
11. Andaradeniya Estate Private Limited 669,849 0.18
12. Mrs. Anoma Kamalika Amarasuriya 536,910 0.14
13. Mr. Nai Kaluge Anura Deepal De Silva 441,582 0.12
14. Ms. Nai Kaluge Ruvani Hemamala De Silva 397,638 0.11
15. Mr. Nalin Amita De Silva 378,978 0.10
16. Jafferjee Brothers (Exports) Limited 375,600 0.10
17. Mr. Abeysiri Hemapala Munasinghe 328,644 0.09
18. Mrs. Enoka Kamali Wickramasinghe 319,857 0.09
19. Mr. Leslie Premal Mendis 274,934 0.07
20. Mr. Hemaka Devapriya Senarath Amarasuriya 268,446 0.07
Others 20,647,056 5.50
Total 375,628,830 100
Share Trading
For the Period Ended As at 31st March As at 31st March
2019 2018
(12 Months) (15 Months)
Number of Transactions 1,735 3,107

Number of Shares Traded 36,380,607 247,193,250
Value of Shares Traded (Rs.) 1,699,125,679 11,602,291,501
278 5 13 25 35
Share Information
Public Holding as at 31st March 2019

The percentage of shares held by the public is 7.72% (2018 – 7.72%).
Number of Shareholders representing public holding – 2,702
Float adjusted market capitalisation – Rs. 724,963,641.9
The Company is not in compliance with option 5 of the Listing Rule 7.13.1 (a) which requires a Company with a Float Adjusted
Market Capitalisation of less than Rs. 2.5 billion to maintain a minimum public Holding of 20%.
Record of Scrip Issues

Year ended 31st March Issue Basis Number Cumulative
of Shares Share Capital
Rs. ’000
1981 Prior to Public Issue – 1,855,200 18,552
1982 Public Issue – 463,800 23,190
1984 Bonus 2:01 1,159,500 34,785
1985 Bonus 3:01 1,159,500 46,380
1989 Bonus 1:01 4,638,000 92,760
1992 Bonus 4:01 2,319,000 115,950
1992 Rights (at Rs. 40.00) 8:01 1,449,375 130,444
1994 Bonus 5:01 2,608,875 156,533
1996 Bonus 9:02 3,478,500 191,318
1996 Rights (at Rs. 50.00) 9:02 1,855,766 209,875
1998 Bonus 11:03 5,723,868 267,114
2000 Bonus 5:01 5,342,276 320,537
2004 Bonus 4:01 8,013,415 400,671
2005 Bonus 4:01 10,016,769 500,838
2006 Bonus 4:01 12,520,961 626,048
2011 Subdivision 1 for 1 62,604,805 –
2017 Subdivision 3 for 1 250,419,220 –
Total Number of Shares – 375,628,830 626,048

101 161 279
REPORTS
Share Information
All Share Price Index vs Market Price Per Share
7,000 50
6,600 40
6,200 30
5,800 20
5,400 10
5,000 0
Index Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Rs.
2018 2018 2018 2018 2018 2018 2018 2018 2018 2019 2019 2019
Market Price Per Share (RHS) All Share Price Index (LHS)
12 months ended 31st March 2018
Listed Debentures
Details regarding the listed debentures issued during the year.
Interest Rate of Comparable
Government Securities as at Issue Date
(%)
12% senior rated listed unsecured redeemable on 28th September 2021 9.51
Interest Rate of Comparable Government Securities as at 31st March 2019 was 10.67%.
Utilisation of Funds Raised Via Debentures

Objective Objective as per Amount allocated as per Proposed Date of Amount allocated % of Total Amounts % of Clarification if not fully
Number Prospectus Prospectus in Rupees Utilisation as per from proceed in Proceed utilised utilisation utilised including where
Prospectus Rupees (A) Rupees (B) against the funds are invested
allocation (eg: whether lent to
(B/A) related party/s etc.)
1. Refinancing Initial issue of Rs. 1.0 Immediately upon 656.8 100 656.8 100% N/A
of short term billion and a maximum allotment of the million million
bank facilities issue of Rs. 1.5 billion Debentures
Highest traded price, lowest traded price, last traded price as at 31st March 2019, interest yield and yield to maturity of trade are
as follows:
Highest Lowest Last Interest Yield to

Traded Price Traded Price Traded Price Yield Maturity
(Rs.) (Rs.) (Rs.) (%) (%)
17% senior rated unsecured redeemable

debentures 99.98 99.98 99.98 17.00 17.01
4.5% senior rated unsecured redeemable
debentures 100.00 100.00 100.00 14.50 14.50
8.25% senior rated unsecured redeemable
debentures 100.00 100.00 100.00 8.25 8.25
Debt/equity ratio, interest cover and quick asset ratio are given in Financial Highlights on page 10 of this Report.
280 5 13 25 35
INDEPENDENT ASSURANCE REPORT
Ernst & Young Tel : +94 11 2463500

Chartered Accountants Fax Gen : +94 11 2697369
201 De Saram Place Tax : +94 11 5578180
P.O. Box 101 eysl@lk.ey.com
Colombo 10 ey.com
Sri Lanka
Independent Assurance Report to Singer Our engagement provides limited assurance as well as
(Sri Lanka) PLC on the Sustainability reasonable assurance. A limited assurance engagement
Reporting Criteria Presented in the Integrated is substantially less in scope than a reasonable assurance
Annual Report – 2018/19 engagement conducted in accordance with SLSAE-3000
and consequently does not enable to obtain assurance
Introduction and scope of the engagement
that we would become aware of all significant matters that
The management of Singer (Sri Lanka) PLC (“the Company”) might be identified in a reasonable assurance engagement.
engaged us to provide an independent assurance on the Accordingly, we do not express an opinion providing
following elements of the sustainability reporting criteria reasonable assurance.
presented in the annual report – 2018/19 (“the Report”).
Management of the Company’s responsibility

Reasonable assurance on the information on financial
for the Report
zz
performance as specified on page 34 of the Report.

The management of the Company is responsible for the
zz Limited assurance on other information presented preparation of the self-declaration, the information and
in the Report, prepared in accordance with the statements contained within the Report, and for maintaining
requirements of the Global Reporting Initiative adequate records and internal controls that are designed to
GRI Standards: “In accordance” – Core guidelines. support the sustainability reporting process in line with the GRI
Sustainability Reporting Guidelines.
Basis of our work and level of assurance
We performed our procedures to provide limited assurance Ernst & Young’s responsibility
in accordance with Sri Lanka Standard on Assurance
Engagements (SLSAE 3000): “Assurance Engagements Our responsibility is to express a conclusion as to whether
Other than Audits or Reviews of Historical Financial we have become aware of any matter that causes us to
Information”, issued by the Institute of Chartered believe that the Report is not prepared in accordance with
Accountants of Sri Lanka (“ICASL”). the requirements of the Global Reporting Initiative, GRI
Standards: “In accordance” – Core guidelines. This report
The evaluation criteria used for this limited assurance is made solely to the Company in accordance with our
engagement are based on the Sustainability Reporting engagement letter dated 19 March 2019. We disclaim any
Guidelines (“GRI Guidelines”) and related information in assumption of responsibility for any reliance on this report
particular, the requirements to achieve GRI Standards to any person other than the Company or for any purpose
“In accordance” - Core guideline publication, publicly other than that for which it was prepared. In conducting our
available at GRI’s global website at “www.globalreporting.org”. engagement, we have complied with the independence
requirements of the Code for Ethics for Professional
Accountants issued by the ICASL.
Partners: W R H Fernando FCA FCMA M P D Cooray FCA FCMA R N de Saram ACA FCMA Ms. N A De Silva FCA Ms. Y A De Silva FCA W K B S P Fernando FCA FCMA
Ms. K R M Fernando FCA ACMA Ms. L K H L Fonseka FCA A P A Gunasekera FCA FCMA A Herath FCA D K Hulangamuwa FCA FCMA LLB (Lond) H M A Jayesinghe FCA FCMA
Ms. A A Ludowyke FCA FCMA Ms. G G S Manatunga FCA Ms. P V K N Sajeewani FCA N M Sulaiman ACA ACMA B E Wijesuriya FCA FCMA
Principal T P M Ruberu FCMA FCCA
A member firm of Ernst & Young Global Limited
101 161 281
REPORTS
INDEPENDENT ASSURANCE REPORT
Key assurance procedures

We planned and performed our procedures to obtain the
information and explanations considered necessary to
provide sufficient evidence to support our limited assurance
conclusions. Key assurance procedures included:
zz Interviewing relevant the company’s personnel to
understand the process for collection, analysis, aggregation
and presentation of data.
zz Reviewing and validation of the information contained in the
Report.
zz Checking the calculations performed by the Company on a
sample basis through recalculation.
zz Reconciling and agreeing the data on financial performance
are properly derived from the Company’s audited financial
statements for the year ended 31 March 2019.
zz Comparison of the content of the Report against the
criteria for a Global Reporting Initiative, GRI Standards:
“In accordance” – Core guidelines.
Our procedures did not include testing electronic systems

used to collect and aggregate the information.
Limitations and considerations

Environmental and social performance data are subject to
inherent limitations given their nature and the methods used
for determining, calculating and estimating such data.
Conclusion
Based on the procedures performed, as described above, we
conclude that:
zz The information on financial performance as specified on
page 34 of the Report are properly derived from the audited
financial statements of the Company for the year ended
31 March 2019.
zz Nothing has come to our attention that causes us to believe
that other information presented in the Report are not fairly
presented, in all material respects, in accordance with the
Company’s sustainability practices and policies some of
which are derived from Sustainability Reporting Guideline,
GRI Standards – “In accordance” Core.
Ernst & Young

Chartered Accountants
16th May 2019
Colombo
282 5 13 25 35
CERTIFICATE OF THE DIRECTOR/PRINCIPAL OFFICER/PRECEDENT

PARTNER ON TRANSFER PRICING
TIN 124008026
(As per Regulation 10 of the Extraordinary Gazette No. 1960/39, dated 31st March 2016 issued under Section 104 of the Inland
Revenue Act No. 10 of 2006)
It is certified that the Company has complied with the Transfer Pricing Regulations issued under Section 104 of the Inland
Revenue Act No. 10 of 2006. The information pursuant to these Regulations is given in Approved Accountant's Certificate
produced under Section 107(2) (a) of the said Inland Revenue Act.
We believe that the record of transaction entered into with associated undertaking during the period from 1st April 2017 to
31st March 2018 is at arm’s length, not prejudicial to the interests of the Company and not carried out for profit shifting purposes.
Records and information of alI transactions have been submitted to the Approved Accountant who reviewed the transfer pricing
records and no adverse remarks have been in the certificate done by the Approved Accountant.
Note: The submission of record and information of transactions to the Approved Accountant is not required, in relation to
a company which makes transactions with any associated undertaking where the aggregate value of such transactions is
Sri Lankan rupees ten million or less.
For and on behalf of the Board of Directors/Principal Officer,

Singer (Sri Lanka) PLC,
80, Nawam Mawatha,
Colombo 2
23rd November 2018
101 161 283
REPORTS
GLOBAL REPORTING INITIATIVES (GRI)

STANDARD DISCLOSURES INDEX
GRI Index No. Description Reported Section Page No.
GRI 102: General Disclosures
Organisational Profile
102-1 Name of the Organisation Corporate Information Inner Back Cover
102-2 Activities brands, products and services Institutional Capital 50 to 55
102-3 Location of headquarters Corporate Information Inner Back Cover
102-4 Location of operations Business Model 27
102-5 Ownership and legal form Business Model 27

Corporate Information Inner Back Cover
102-6 Markets served Business Model 27, 289 to 292
102-7 Scale of the reporting Organisation Financial Highlights 10
102-8 Information on other employees and other workers Employee Capital 69 to 70
102-9 Organisation’s supply chain Social and Environmental Capital 98
102-10 Significant changes to the organisation and its supply chain Annual Report of the Board of 163 to 169
Directors of the affairs of the
Company
102-11 Precautionary principle or approach About this Report 4
102-12 External initiatives About this Report 4, 103 and 104
102-13 Membership of associations Social and Environmental Capital 86
Strategy and Analysis
102-14 Statement from senior decision-maker Chairman/CEO Statement 16 and 17
Ethics and Integrity
102-16 Values, principles, standards and norms of behaviour Singer at a Glance 7

Corporate Governance 103 to 105
Governance
102-18 Governance structure Corporate Governance 104
Stakeholder Engagement
102-40 List of stakeholder groups Business Model 31 and 32
102-41 Report the percentage of total employees covered by collective bargaining Employee Capital 83
agreements
102-42 Identifying and selecting stakeholders Business Model 31
102-43 Approach to stakeholder engagement Business Model 31
102-44 Key topics and concerns raised Business Model 31 and 32

284 5 13 25 35
Global Reporting Initiatives (GRI) Standard Disclosures Index
Reporting Practice
102-45 Entities included in the consolidated financial statements Business Model 27
102-46 Defining report content and topic boundaries About this Report 4 and 33
102-47 List of material topics Business Model 33
102-48 Restatements of information About this Report 4
102-49 Changes in reporting About this Report 4
102-50 Reporting period About this Report 4
102-51 Date of most recent report About this Report 4
102-52 Reporting cycle About this Report 4
102-53 Contact point for questions regarding the report Supplementary Information 4
102-54 Claims of reporting in accordance with the GRI Standards About this Report, 4
Supplementary Information 282
102-55 GRI content index Supplementary Information 282 to 288
102-56 External assurance Supplementary Information 4 and 282
GRI Specific Disclosures
Economic Topics
GRI 201: Economic Performance
103-1 Explain the material topics and its boundary Business Model 34
103-2 The Management Approach and its components Business Model 34
103-3 Evaluation of the Management approach Business Model 34
201-1 Direct Economic Value generated and distributed Business Model 34
201-3 Defined benefit plan obligations and other retirement plans Notes to the Financial Statements 246
201-4 Financial assistance received from government Social and Environmental Capital 90
GRI 206: Anti-competitive Behaviour
103-1 Explain the material topics and its boundary Social and Environmental Capital 90
103-2 The Management Approach and its components Social and Environmental Capital 90
103-3 Evaluation of the Management approach Social and Environmental Capital 90
206-1 Legal actions for anti-competitive behaviour, anti-trust Social and Environmental Capital 90
and monopoly practices
Environmental Topics
GRI 301: Materials
103-2 The Management Approach and its components Social and Environmental Capital 91, 92 and 94
103-3 Evaluation of the Management approach Social and Environmental Capital 91, 92 and 94
301-1 Materials used by weight or volume Social and Environmental Capital 94
301-2 Recycled input materials used Social and Environmental Capital 91 and 92
101 161 285
REPORTS
GRI 302: Energy
302-1 Energy consumption within the Organisation Social and Environmental Capital 95
302-3 Energy intensity Social and Environmental Capital 95
302-4 Reduction of energy consumption Social and Environmental Capital 95
302-5 Reduction in energy requirements of products and services Social and Environmental Capital 92
GRI 303: Water

303-1 Water withdrawal by source Social and Environmental Capital 95
GRI 304: Biodiversity
304-1 Operational sites owned, leased, managed in, or adjacent to, Social and Environmental Capital 96
protected areas and areas of high biodiversity value outside protected areas
GRI 305: Emissions
305-1 Direct (Scope 1) GHG emissions Social and Environmental Capital 96
305-5 Reduction of greenhouse gas (GHG) emissions Social and Environmental Capital 95
GRI 306: Effluents and Waste
103-2 The Management Approach and its components Social and Environmental Capital 91, 92 and 95
103-3 Evaluation of the Management approach Social and Environmental Capital 91, 92 and 95
306-1 Water discharge by quality and destination Social and Environmental Capital 95
306-2 Waste by type and disposal method Social and Environmental Capital 91 and 92
GRI 307: Environmental Compliance
307-1 Non-compliance with environmental laws and regulations Social and Environmental Capital 96
286 5 13 25 35
GRI Specific Disclosures
Social Topics
GRI 401: Employment
103-1 Explain the material topics & its boundary Employee Capital 69 and 70
103-2 The Management Approach and its components Employee Capital 70 to 77
103-3 Evaluation of the Management approach Employee Capital 70 to 77
401-1 New employee hires and employee turnover Employee Capital 69 and 71
401-2 Benefits provided to full-time employees that are not provided to Employee Capital 77
temporary or part time employees
401-3 Parental leave Employee Capital 77
GRI 402: Labour/Management Relations
103-1 Explain the material topics & its boundary Employee Capital 69
103-2 The Management Approach and its components Employee Capital 69
103-3 Evaluation of the Management approach Employee Capital 69
402-1 Minimum notice periods regarding operational changes Employee Capital 69
GRI 403: Occupational Health and Safety
103-1 Explain the material topics and its boundary Employee Capital 78 and 80
103-2 The management approach and its components Employee Capital 78 and 80
103-3 Evaluation of the Management approach Employee Capital 78 and 80
403-2 Type of injury and rate of injury, occupational diseases, lost days and Employee Capital 80
absenteeism and number of work related fatalities
GRI 404: Training and Education
103-1 Explain the material topics and its boundary Employee Capital 74 to 76
103-2 The management approach and its components Employee Capital 74 to 76
103-3 Evaluation of the Management approach Employee Capital 74 to 76
404-1 Average hours of training per year per employee Employee Capital 76
404-2 Programmes for upgrading employee skills and transition assistance Employee Capital 70, 74 and 75
programmes
404-3 Percentage of employees receiving regular performance and career Employee Capital 76
development reviews
GRI 405: Diversity and Equal Opportunity
103-1 Explain the material topics and its boundary Employee Capital 70 and 78
103-2 The management approach and its components Employee Capital 70 and 78
103-3 Evaluation of the Management approach Employee Capital 70 and 78
405-1 Diversity of governance bodies and employees Employee Capital 70 and 71
405-2 Ratio of basic salary and remuneration of women to men Employee Capital 78
101 161 287
REPORTS
GRI 406: Non-discrimination
103-2 The management approach and its components Social and Environmental Capital 90
406-1 Incidents of discrimination and corrective actions taken Social and Environmental Capital 90
GRI 407: Freedom of Association and Collective Bargaining
103-1 Explain the material topics and its boundary Social and Environmental Capital 83 and 99
103-2 The management approach and its components Social and Environmental Capital 83 and 99
103-3 Evaluation of the Management approach Social and Environmental Capital 83 and 99
407-1 Operations and suppliers in which the right of freedom of Social and Environmental Capital 99
association and collective bargaining may be at risk
GRI 408: Child Labour
408-1 Operations and suppliers at significant risk for incidents of child labour Social and Environmental Capital 90
GRI 409 : Forced or Compulsory Labour
409-1 Operations and suppliers at significant risk for incidents of forced or Social and Environmental Capital 90
compulsory labour
GRI 412: Human Rights Assessment
412-1 Operations that have been subjected to human rights reviews or impact Social and Environmental Capital 90
assessment
GRI 413: Local Communities
103-1 Explain the material topics and its boundary Social and Environmental Capital 86 to 89
103-2 The management approach and its components Social and Environmental Capital 86 to 89
103-3 Evaluation of the Management approach Social and Environmental Capital 86 to 89
413-1 Operations with local community engagement, impact assessment and Social and Environmental Capital 86 to 89
development programmes
288 5 13 25 35
GRI 415: Public Policy
415-1 Political contributions Social and Environmental Capital 90
GRI 416: Customer Health and Safety
416-1 Assessment of health and safety impacts of product and service categories Social and Environmental Capital 98
416-2 Incidents of non-compliance concerning the health and safety impacts of Social and Environmental Capital 99
products and services
GRI 417: Product and Service Labelling
417-2 Incidents of non-compliance concerning product and services information and Social and Environmental Capital 99
labelling
417-3 Incidents of non-compliance concerning marketing communications Social and Environmental Capital 99
GRI 418: Customer Privacy
418-1 Complaints received concerning breaches of customer privacy Social and Environmental Capital 99
and losses of customer data
GRI 419: Socioeconomic Compliance
419-1 Non-compliance with laws and regulations in the social and economic area Social and Environmental Capital 99
101 161 289
REPORTS
DISTRIBUTION NETWORK
Singer Plus Shops Gothatuwa Minuwangoda Poojapitiya Monaragala
Homagama Mirigama Rikillagaskada Bibile
Ampara
Kaduwela Negombo Wattegama Buttala
Akkaraipattu
Katubedda Nittambuwa Kataragama
Ampara “A”
Kirulapona Pasyala Kegalle Monaragala
Ampara “B”
Kohuwala Pugoda Deraniyagala Siyabalanduwa
Dehiattakandiya
Kotahena Ragama Kegalle ‘A’ Wellawaya
Kalmunai “A”
Kottawa Seeduwa Kegalle ‘B’
Kalmunai “B”
Kosgama Veyangoda Mawanella Nuwara Eliya
Padiyatalawa
Maharagama “A” Wattala Rambukkana Ginigathhena
Pottuvil
Maharagama “B” Weliweriya Ruwanwella Hatton
Samanthurai
Malabe Yakkala Warakapola Maskeliya
Uhana
Maradana Yatiyanthota Nuwara Eliya “A”
Mattakkuliya Hambantota Nuwara Eliya “B”
Anuradhapura
Merit – Moratuwa Agunakolapelessa Kurunegala Pussellawa
Anuradhapura “A”
Milagiriya Ambalantota Alawwa Talawakelle
Anuradhapura “B”
Moratuwa Beliatta Bingiriya
Anuradhapura “C”
Nugegoda Hambantota Galgamuwa Polonnaruwa
Eppawela
Padukka Middeniya Giriulla Aralanganwila
Galenbindunuwewa
Pelawatte Suriyawewa Hiripitiya Bakamuna
Habarana
Peliyagoda Tangalle Ibbagamuwa Hingurakgoda
Horowpathana
Pettah Tissamaharamaya Kuliyapitiya Kaduruwela “A”
Kahatagasdigiliya
Piliyandala “A” Kurunegala “A” Kaduruwela “B”
Kebithigollawa
Pitakotte Jaffna Kurunegala “B” Medirigiriya
Kekirawa
Pliyandala “B” Chavakachcheri Kurunegala “C” Minneriya
Medawachchiya
Rajagiriya Chenkanai Maho Polonnaruwa
Nochchiyagama
Ratmalana Chunnakam Mawathagama Welikanda
Rambewa
Thimbirigasyaya Hospital Road, Jaffna Melsiripura
Tambuththegama
Udahamulla – Merit Jaffna Narammala Puttalam
Thirappane
Union Place Manipay Nikaweratiya Anamaduwa
Thalawa
Ward Place Nelliady Pannala Chilaw
Wellampitiya Point Pedro Polgahawela Dankotuwa
Badulla
Wellawatta Puthukkudiyirippu Pothuhera Norochcholai
Badulla
Kodikamam Polpithigama Puttalam
Badulla “B”
Galle Rideegama Wennappuwa
Bandarawela “A”
Ahangama Kalutara Wariyapola Nattandiya
Bandarawela “B”
Ambalangoda Agalawatta
Diyathalawa
Baddegama Aluthgama Matara Ratnapura
Girandurukotte
Elpitiya Bandaragama Akuressa Balangoda
Hali-Ela
ElPitiya New Town Beruwala Deniyaya Dehiowita
Mahiyanganaya
Galle “A” Bulathsinghala Dikwella Eheliyagoda
Passara
Galle “B” Darga Town Hakmana Embilipitiya
Welimada
Hikkaduwa Horana Issadeen Town Godakawela
Imaduwa Ingiriya Kamburupitiya Kahawatta
Batticaloa
Neluwa Kalutara “A” Matara “A” Kuruwita
Batticaloa “A”
Pinnaduwa Kalutara “B” Matara “B” Nivitigala
Batticaloa “B”
Udugama Matugama Morawaka Pelmadulla
Chenkaladi
Wanduramba Panadura Urubokka Ratnapura “A”
Kalawanchikudi
Wadduwa Weligama Ratnapura “B”
Kattankudy
Gampaha Kalawana
Valaichchenai
Delgoda Kandy Mannar
Divulapitiya Akurana Mannar Trincomalee
Colombo
Dompe Digana Kanthalai
Angoda
Gampaha Galaha Matale Trincomalee “A”
Athurugiriya
Ganemulla Gampola Dambulla Trincomalee “B”
Attidiya
Ja-Ela Gampola “B” Galewela Vakarai
Avissawella
Kadawatha “A” Gelioya Matale
Battaramulla
Kadawatha “B” Kandy Naula Vavuniya
Boralesgamuwa
Kandana Katugastota Rattota Mallavi
Borella
Kiribathgoda “B” Kundasale Wilgamuwa Murunkan
Colpetty
Kirindiwela Nawalapitiya Parakramapura
Dehiwela
Kochchikade Peradeniya Vavuniya
Delkanda
Mawaramandiya Pilimatalawa
Galle Face Court
290 5 13 25 35
DISTRIBUTION NETWORK
Kilinochchi Katugastota Satellite Shops Matale

Kilinochchi Kegalle Pallepola
Ampara
Kekirawa
Hingurana
Mullaitivu Kilinochchi Matara
Mullaitivu Kiribathgoda Pitabeddara
Anuradhapura
Kirindiwela Telijjawila
Galnewa
Kuliyapitiya Thihagoda
Samsung Showroom Wilachchiya
Kurunegala
Nugegoda Maharagama Monaragala
Badulla
Ratmalana Mahiyanganaya Badalkumbura
Ettampitiya
Matale Thanamalwila
Haldemmulla
Matara
Singer Homes Haputhale
Matugama Nuwara Eliya
Hasalaka
Anuradhapura Mawanella Pundaluoya
Meegahakivula
Badulla Minuwangoda Ragala
Udapussellawa
Chilaw Mirigama Walapane
Ududumbara
Godagama Monaragala
Tissapura
Kadawatha Moratuwa Polonnaruwa
Kalutara Mount Lavinia Diyabeduma
Colombo
Kandy Narammala Jayanthipura
Hanwella
Kegalle Negombo Diyasenpura
Moragahahena
Kottawa Nikaweratiya
Kotte Nittambuwa Puttalam
Galle
Kurunegala Nuwara Eliya Hettipola
Batapola
Maharagama Panadura Kobeigane
Karandeniya
Matale Pelmadulla
Pitigala
Matara Pilimathalawa Ratnapura
Talgaswala
Negombo Piliyandala Kiriella
Uragasmanhandiya
Nuwara Eliya Ratnapura Pallebadda
Yakkalamulla
Ratmalana Ruwanwella Rakwana
Labuduwa
Ratnapura Talawathugoda
Wellawatta Thambuttegama Trincomalee
Gampaha
Tissamaharamaya Muttur
Katana
Trincomalee
SISIL World Marandagahamulla
Union Place Other
Akuressa Niwala
Vavuniya Apparel Solutions and
Ambalantota Veyangoda Katunayake Duty Free Store
Ampara Hambantota
Warakapola
Anuradhapura Ranna
Welimada
Avissawella Walasmulla
Badulla Weeraketiya
Balangoda Singer Mega
Bandarawela Kalutara
Beko & Sony
Battaramulla Baduraliya
Boralesgamuwa
Borella Duplication Road
Chilaw Kandy
Gampaha
Chunnakam Alawathugoda
Kalutara
Dambulla Ankumbura
Kandy
Dickwella Galagedara
Kandy Mall
Digana Hatharaliyadda
Kiribathgoda
Eheliyagoda Kadugannawa
Kottawa
Embilipitiya Menikhinna
K-Zone – Ja-Ela
Galewela Polwatta
K-Zone – Moratuwa
Galle Maharagama
Gampaha Kegalle
Malabe
Gampola Bulathkohupitiya
Mt. Lavinia
Godakawela Hemmatagama
Negombo
Hingurakgoda Kotiyakumbura
Nugegoda
Homagama Panadura
Horana Kurunegala
Rajagiriya
Ja-Ela Abanpola
Thalawathugoda
Jaffna Dummalasuriya
Thurstan Road
Kadawatha Katupotha
Wattala
Kaduwela Kaduwela
Kahawatta Singer warehouse
Kalutara
Kandy
101 161 291
REPORTS
SERVICE NETWORK AND FASHION ACADEMY NETWORK

Singer Service Derrick Motors Issuru Kaveen Engineers Kandy Vijitha Motors
Regional Service Centres Indika Auto Service Centre J & U Electricals and Sathsara Sound Victor Cycle Works,
Aluthgama Janith Motors Electronics I Tec Electronics Nuwan Motors
Ampara Kurunegala Motors Life Cool AC Engineers Senadeera Ref Centre Lal Honda Service
Anuradhapura Lahiru Motors Nuwan Engineering Thushara Electronics Chathuranga Motors
Badulla Neel Motors Ruwan Electricals Super Air Electrical Works Nimal Ingineers
Colombo Nihal Motors S.K.Electricals Sandamini Multi Electrical K.S.Motors
Jaffna Power Wash S.N.A. Ref Air Engrs S D Machine Service Centre
Kandy Ravi Motors Samagi Ref Centre Vimod Electricals Priyantha Ref Engineers
Kuliyapitiya Royal Motors Sharp Electronics New Vision Electronics Super Cool Air
Matara Sampath Auto Care Super Tech Ref Engineers Samarawickrama Cushion
Pasyala Shantha Motors Technicold Electronics Kuliyapitiya Works
Peliyagoda Tharanga Motors GB Electrical Anuradha Electricals Leyard Furniture
Polonnaruwa Wijesinghe Motors Smart Ref Engineers Chandu Electricals C J Electricals
Ratnapura Lakmal Motores Anjana Electricals Freezair H L Nuwan Sameera
Union Place LAL Enterprises Mr. H G Lalith Mahesh Electricals Amila Pathum Architectures &
Nawam Mawatha Lahiru Motors Mr. C L S Ananda Samodha Electronics Furniture
Vavuniya Amila Furniture Ushan Electricals Techno Frost Sachee Cushion Works
S L K Cushion Designer Keerthi De Jayasinghe Engi. Moderni Air Condition Lion Electronic
Aluthgama Sandanayake Wood Works Mr. D U Jayasinghe New Leeds Electronics
Siri Electrical & Ref Eng. Pujana Electrical & Cellular Econ Air World Air Conditioner Pasyala
Air Tech Engineering Hashen Electrical & Ref Dinu Electricals Chandana Motor Garage New PC House
Multi Tech Engineering Engineer Dushadi Sofa Centre Dasuna Motors Thilak Electricals
Amal Ref & Electricals D J Furniture Rathnayake Enterprises Nipuna Auto Mobile Techno Ref & Air Enterprices
Eranda Multi Electricity Ran Sri Electronics Sandaruwan Cool Engineers Sahana Motors Kavia Engineering
Gulf Motors Indrani Cushion Mr. Muthugalage Saman Service Technico Electronic
Perera & Service Dream Home Furniture Flemingo Cushion House Wijesinghe Motors Aloka Engineers
Dilshan Motors Mr. W.W.M.S. Gihan Mr. W Kulasiri Fernando Peo Motors S.N.A.Ref Air
Nanayakkara Electronics Chandrarathna Welagedara Engineering Ravindra Motors Saleena Electronics
Premalal Motors Super Cool Ref Sanjeewa Auto Works Silicone Electronics
Suranjith Motors Badulla Yoshitha Machine Centre Sathsara Auto Works Kavindu Ref N Air
A.K. Motors Marriott Electricals Kapila Machine Repair Nalinda Mechine Centre Tech Way Services
Sola Edge Colling & Power Tharindu Electricals Gap Machine Centre Mihidum Juki Machine Sumith Motor Works
Solution Cool air engineering Technicians Raja Motors
Dinan Machine Centre Aruna Electricals Jaffna Bandara Auto Mobile Nushan Ref and Air Centre
Thushara Motors TV Centre Ambiha Electricals Susantha Ref Electricals
U.D. Ref Engineering Hiruna Electronics City Link Coolers Matara SESENI Engineers
Telstar Electronic SSV Cool Air Service Janapriya Electronics Nishani Motors
Sameera Cooling Service Institute of Ace Lal Electronics Super Electronics & Air
Ampara Chamari Ref NPM Electricals New Shiney Electronics Technics
Aira Motors Refco Electrical Cool Air Kings New Lion Radio S T S Technical Service
Ruckshan Mechanicle Shop Saman Motors Anton Service Station Silver Dale Elecronics Ariyathilaka Electrical &
Musthafa Motors Mec Mohan Motors Welcome Motors (Hero Chaminda Air Ref Eng.Ser. Engineering
S S H Motors Yasas Motors Garage) New Freeze Air Mr. P P Wickramasinghe
Aruna Ref and Electrical Gunathilake Motors Panchu Garage Penguine International Zuhail Brothers
Eastern Tech Institute Piyal Motors Ragu Mechanic Centre Prince Electricals
Janudha Ref & Electrical Lal Motors Vageetha Motors Uduwella Ref Polonnaruwa
Chil Air Kesala Electricals New Asia Centre K.U.K Sper Cool Service Ashoka Ref
Sahana Motors Hemantha Motors Viji Air Conditioners NilanKa Pathirana Ref Center DJ Engineers
Isuru Sameera Cushion Works New Gamini Agro Centre Jetcool Engineering Service Ruhunu Ref & Air Services J & P Electronics
V T Cushion Works Ravi Service Technology Snow Eagles [Ref & Air Con Sampath Engineering Works Mahaweli Electronics
E Sampath Asela Engineers] Rohan Ref Centre Mayura Ref & Electricals
Life Line Enterprises Colombo Suvil Cushion Centre Max Cool Electricals Mudalige Electronics
Magic Cool Aircon Ben Refrigerators TNR Electricals & Electronics G.A. Auto Electricles Sanath AC Engineering
Chamath Enterprises Raj Motor Winding Hemantha Motors Thilak Electronics
Anuradhapura Chatu Spray Paint The Best Chill Air Conditioning Indika Motors Subasinghe Ref Engineers
Buddhika Electricals Chirathma Electricals Mr. Santhalingam Janahitha Motors Kinnya AC Mechanics
Indunil Ref & Electricals Cool Tech Engineers Mr. Srijeevan Thayarupan Rahula Motors B.N.R. Enterprises
Luck cool Ref Engineers Dineth Electronics Sarani Motors Karunarathne Motors
Shalini Auto Cool E.M.P Electricals Sampath Motor Service Nissanka Motors
Udani Electronics Electro Frost Susantha Motors Techno Engineering
Chandana Entreprises G.M.Electricals Sunil Motors Thilanka Motors
292 5 13 25 35
SERVICE NETWORK AND FASHION ACADEMY NETWORK
Udarata Motors E R Engineers NW Net Computer Systems Matara-A

Janith Motors New Ashen Electrical Web Com Computers Mawanella
Priyankara Motors Sure Ref E-Team Technologies Mega-Thalawathugoda
Sampath Motors Sun Cool Enterprises Millennium Web Mega-Kandy
Udaya Motors Air Cool Temp Rapid Computer Systems Mega-Mount Lavinia
S. M. Motors Melona Aircon Services R & D Engenerings Minuwangoda
Ananda Electricals Cool Rite Service EZ Tec Computers Nawalapitiya
Jayathilaka Motors United Air Cool Comtal Manpower Systems Negombo
Dissanayake Lathe Shop Thilina Electro Tec Nittambuwa
Chaminda Sewing Mechanics Motor Bike service – Leem Technologies Nugegoda
Indika Motora Peliyagoda ATN Computers Nuwaraeliya A
Gautham Cushion Works Athula Motor Works Aruna Computers Panadura
Ravindra Motors Brito Motors Serendib Computer System Peliyagoda
Niluka Ref & Electricals Diaz Motors Stamina IT Pelmadulla
Sassitha Motors Ransak Service Centre MC Link Pilimathalawa
Saman Motors Sinethma Motors K2 Computers Piliyandala B
Sujeewa Engineers Wimal Motor Works N.R.Outchoon Polonnaruwa
Manahara Electricals SP Computers Rathnapura A
Ratnapura Western Digital Computers Ruwanwella
Highcool Air & Ref Centre Stock Franchise at Gold Lion Electronics Shomes-Kegalle
Roshan Electronics Distribution Centre G.P.W.Electronic Tissamaharama
High Frost Mr.Ranjan Amarasinghe Warakapola
Pathirana Ref Engineering Hi-Tech Electronics Fashion Academies Wellawatta
Star Ref Electricals Mr.Pradeep Chaminda Ambalangoda Wellawaya
Sanjaya Electronics Sampath Electricals Ampara Wennappuwa
Quick Cool Mr. Kariyawasam Angoda
Senadeera Multy Ref Tele Technics Anuradhapura B
Solanta Electronics K V Electronics Avissawella
Samagi Diesel Engineering Hiru Service Baddegama
SM Electricals Kumara Electronics Badulla B
PSD Motors T S Electronics Bandarawela
Indika Ref Engineers R J Enterprises Battaramulla
Ranjith Electronics Ultra Cool Ref Centre Borella
Amangi Electronics Sunimal Perera Chilaw
Ruhunu Cushion Work K.Tronic Dambulla
Saman Wood Danushka Ref Dickwella
Smart Wood Creation C K Electronics Eheliyago
Shashei Service Embilipiti New Town
D G Services Mobile Phone Service Galewela
Dinuka Re Fashion Centre Franchise Agents Galle B
Damruwan Cushion Works Colombo Trading Gampaha
Sampath Electronics Apogee International Gampola
Ontas Hatton
Air Conditioning Division Nalin Celular Hingurakgoda
Alwis Engineering Centre Yurani Technology Homagama
Air Mech Airconditioning I Tech Electronics Horana
Company Colombo Trading (Kandy) Ja-Ela
New Dynamic Ref Engineers Jaffna-Hospital Road
Lahiru Ref Computers Service Kaduwela
Re Cool Franchise Agents Kalutara A
R&T Ref Engineering Inet Computer Systems Kandana
Ref Air Electricals Omex Computers Technology Kandy
Royal Cool Enterprises ST Computers Katubedda
Sewwandi Ref Engineers PC System Katugastota
Tempcool Engineering A Soft Computer Kiribathgoda B
Yellowma Airconditioning Sabaragamuwa IT Solution Kirindiwela
Qualitcool Easy Technology Kurunegala A
Sri Lankan Engineering Nano Technologies Mahiyangana
Sun Ref Engineers HP Computer Systems Malabe
Cool Way Sakun Technologies Maradana
101 161 293
REPORTS
GLOSSARY
Accounting Policies Cash Equivalents Dividend Cover Gross Dividend Price Earnings Ratio
Specific principles, Liquid investments with Profit attributable to Portion of profits Closing market price
bases, conventions, original maturity periods ordinary shareholders inclusive of tax of a share divided by
rules and practices of three months or less. divided by gross withheld, distributed to earnings per share as at
adopted by an dividend. Measures shareholders. reporting date.
enterprise in preparing the number of times
Contingent Liabilities
and presenting Financial dividend is covered by
Conditions or situations distributable profit. Held-to-Maturity Related Parties
Statements.
at reporting date the Debt assets acquired by Parties who could
financial effect of which the entity with positive control or significantly
Acid Ratio are to be determined by Dividend Payout intention to be held-to- influence the financial
Current asset less future events which may Dividend per share maturity. and operating policies
inventory divided by or may not occur. divided by earnings per of the business.
current liabilities. share of the Company.
Interest Cover
Credit Rating Profit before tax plus Return on Average
Amortisation An evaluation of a Earnings Per Share net finance cost divided Net Assets Equity
The expense of writing corporate’s ability to Profits attributable to by net finance cost. Profits for the year
off over a fixed period, repay its obligations ordinary shareholders Measure of an entity’s divided by average total
the initial value of an or the likelihood of not divided by the weighted debt service ability. equity.
intangible asset such as defaulting, carried out average number of
goodwill, patents etc. by an independent ordinary shares in issue.
Impairment Revenue Reserves
rating agency.
This occurs when Reserves considered
Available-for-Sale Equity recoverable amount as being available
All assets not in any of Current Ratio Shareholders’ funds. of an asset is less its for distributions and
the three categories Current assets divided carrying value. investments.
namely held to maturity by current liabilities.
Fair Value
fair value through profit A measure of liquidity.
Fair value is the amount Market Capitalisation Segment
or loss and loan and
receivables. It is a for which an asset could Number of shares in Constituent business
Debt be exchanged between issue multiplied by the units grouped in
residual category does
not mean that the entity Total liabilities, excluding a knowledgeable, market value of a share terms of similarity of
stands ready to sell deferred income. willing buyer and a at the reporting date. operations and location.
these all the time. knowledgeable, willing
seller in an arm’s length
Debt to Equity Net Assets Per Value Addition
transaction.
Borrowings Total borrowings Share The quantum of
All interest bearing less cash and cash The equity attributable to wealth generated by
equivalents divided by Financial owners of the Company the activities of the
loans, fixed deposits
and saving deposits. total equity. Instruments divided by the weighted Group measured as
Financial instrument is average number of the difference between
any contract that gives ordinary shares in issue. turnover and the cost of
Capital Employed Debt Ratio
rise to both financial materials and services
Total of interest bearing Total liabilities divided by assets in one entity bought in.
loans and borrowings, total assets. Non-Controlling
and a financial liability
bank overdraft and total or equity instrument in
Interest
equity. Equities in subsidiary Working capital
Deferred Taxation another entity.
not attributable, directly Capital required to
The net tax effect on or indirectly to a parent. finance the day-to-day
Capital Reserves items which have been Gearing Ratio operations computed
Reserves identified for included in the Income Proportion of borrowings as the excess of current
specific purposes and Statement, which would to capital employed. assets over current
considered not available only qualify for inclusion liabilities.
for distribution. on a tax return at a
future date.
294 5 13 25 35
NOTICE OF ANNUAL GENERAL MEETING

(Company Registration No. PQ 160)
NOTICE IS HEREBY GIVEN THAT THE FORTY- FOURTH ANNUAL GENERAL MEETING OF SINGER (SRI LANKA) PLC will be held
on Tuesday, 25th June 2019 at 3.00 pm at Hayleys PLC at No. 400, Deans Road, Colombo 10, Sri Lanka.
1. To receive, consider and adopt the Annual Report of the Board of Directors and the Statement of Accounts for the 12 months
ended 31st March 2019 with the Report of the Auditors thereon.
2. To re-elect, Mr. D. Sooriyaarachchi, who retires by rotation at the Annual General Meeting, a Director in terms of Article 24 (4)
of the Articles of Association of the Company.
3. To re-elect Ms. O.D. Gunewardene who has been appointed to the Board since the last Annual General Meeting, a Director in
terms of Article 24 (10) of the Articles of Association of the Company.
4. To re-elect Mr. M.H. Wijewardene who has been appointed to the Board since the last Annual General Meeting, a Director in
terms of Article 24 (10) of the Articles of Association of the Company.
5. To authorise Directors to determine contributions to Charities.
6. To reappoint Messrs. KPMG, Chartered Accountants as the Auditors of the Company for the year 2019/20 and to authorise the
Directors to determine their remuneration.
By Order of the Board,

Singer (SRI LANKA) PLC
HAYLEYS GROUP SERVICES (PVT) LTD.

Secretaries
Colombo
16th May 2019
Note:
A Shareholder is entitled to appoint a proxy to attend and vote instead of himself and a proxy need not be a shareholder of the
Company. A Form of Proxy is enclosed for this purpose. The instrument appointing a proxy must be deposited with the Company
Secretaries, Hayleys Group Services (Pvt) Ltd., No. 400, Deans Road, Colombo 10, Sri Lanka not less than 48 hours before the
time fixed for the meeting.
FORM OF PROXY
(Company Registration No. PQ160)
I/We* ……......................……………………………………………………………………………………… (full name of Shareholder**)
NIC No./Reg. No. of Shareholder (**) ………………………………………… of ………………………………………………………….
…………………………………………..…………… being Shareholder/Shareholders* of SINGER (SRI LANKA) PLC hereby appoint:
……………………………………………………………..……………………………………….…………… (full name of proxyholder**)
NIC No. of Proxyholder (**) ……………….…………………………… of …………………………………………………………………
………………………….………………………………………………….……………….……………………………… or, failing him/them,
ABEYAKUMAR MOHAN PANDITHAGE of Colombo (Chairman of the Company) or failing him, one of the Directors of the Company
as my/our* proxy to attend and vote as indicated hereunder for me/us* and on my/our* behalf at the Forty Fourth Annual
General Meeting of the Company to be held on Tuesday, 25th June 2019 at 3.00 p.m. and at every poll which may be taken in
consequence of the aforesaid meeting and at any adjournment thereof.
For Against
1. To adopt the Annual Report of the Board of Directors and the Statements of Accounts for the 12 months
ended 31st March 2019 with the Report of the Auditors thereon.
2. To re-elect Mr. D. Sooriyaarachchi, who retires by rotation at the Annual General Meeting, a Director in
terms of Article 24 (4) of the Article of Association of the Company.
3. To re-elect Ms. O.D. Gunewardene who has been appointed to the Board since the last Annual General
Meeting, a Director in terms of Articles 24 (10) of the Articles of Association of the Company.
4. To re-elect Mr. M.H. Wijewardene who has been appointed to the Board since the last Annual General
Meeting, a Director in terms of Article 24 (10) of the Articles of Association of the Company.
5. To authorise Directors to determine contributions to Charities.
6. To reappoint Messrs. KPMG, Chartered Accountants as the Auditors of the Company for the year
2019/20 and to authorise the Directors to determine their remuneration.
(**) The proxy may vote as he thinks fit on any other resolution brought before the Meeting of which due notice has been given.
As witness my/our* hands this ……………………. day of …………………………….2019.
Witnesses: ………………………………
Signature: ……………………………….......................................... Signature of Shareholder
Name: ………………………………..........................................
Address: ………………………………........................................
………………………………........................................
NIC No: ………………………………..........................................

Notes:
(a) *Please delete the inappropriate words.
(b) A shareholder entitled to attend and vote at the Annual General Meeting of the Company, is entitled to appoint a proxy to
attend and vote instead of him/her and the proxy need not be a shareholder of the Company.
**Full name of shareholder/proxy holder and their NIC Nos. and Witness are mandatory. Your Proxy Form will be rejected if
these details are not completed.
(c) A shareholder is not entitled to appoint more than one proxy to attend on the same occasion.
(d) Instructions are noted below.
(e) This Form of Proxy is in terms of the Articles of Association of the Company.
INSTRUCTIONS AS TO COMPLETION :
1. To be valid, the completed Form of Proxy must be deposited with the Company Secretaries, Hayleys Group Services (Pvt) Ltd.
at No.400, Deans Road, Colombo 10, Sri Lanka not less than 48 hours before the start of the Meeting.
2. In perfecting the Form of Proxy, please ensure that all requested details are filled in legibly including mandatory details. Kindly
Sign and fill in the date of signing.
3. If you wish to appoint a person other than the Chairman of the Company (or failing him, one of the Directors) as your proxy,
please insert the relevant details at (1) overleaf. The proxy need not be a member of the Company.
4. Please indicate with an X in the space provided how your proxy is to vote on the resolutions. If no indication is given, the
proxy in his discretion will vote as he thinks fit.
5. In the Case of a Company/Corporation the proxy must be under its common seal which should be affixed and attested in the
manner prescribed by its Articles of Association.
In the case of the individual shareholders, the signature of the shareholder should be witnessed by any person over 18 years
of age.
6. Where the Form of Proxy is signed under a Power of Attorney (POA) which has not been registered with the Company, the
original POA together with a photocopy of same or a copy certified by a Notary Public must be lodged with the Company
along with the Form of Proxy.
7. In case of Marginal Trading Accounts (slash accounts), the Form of Proxy should be signed by the respective authorised
Fund Manager/Banker with whom the account is maintained.
CORPORATE INFORMATION
Name of the Company Lawyers Mr. A.A. Sathiyamoorthy – Senior Manager – Trade
Singer (Sri Lanka) PLC Neelakandan & Neelakandan Credit
Attorneys-at-Law & Notaries Public Mr. P. Jayatilake – Marketing Manager – Electronics
Legal Form
M&N Building (Level 5), No. 2, Deal Place, Mr. T.L. Senaviratne – Senior Manager –
Public company with limited liability. Colombo 3 Information Technology
Incorporated as a public company in Sri Lanka Mr. D.D.W. Dassanayake – Senior Manager – Credit
on 30th December 1974 under the Companies Directorate
Mr. K.P. Peramunugamage – Head of Business
Ordinance and Re-registered under the Mr. A.M. Pandithage – Chairman (Executive) School
Companies Act No. 07 of 2007 on 13th June 2008. Mr. K.D.D. Perera – Co-Chairman (Non-Executive) Mr. L.R.P. Perera – Business Development
Mr. M.H. Wijewardene – Chief Executive Officer Manager – Retail
Founded in 1877 as a Branch of Singer Sewing
Mr. D. Sooriyaarachchi Mr. N.I. Kuruppuarachchi – Senior Manager – Legal
Machine Company, USA the shares of the
Mr. D.H. Fernando Mr. S. Serasinghe-Senior Manager – Distribution
Company are listed on the Colombo Stock
Mr. M.H. Jamaldeen Mr. N.B. Ranasinghe – Senior Manager – Revenue
Exchange. Accounting Year: 31st March.
Mr. D.K. de. S. Wijeyeratne and Margin
Registered Office Ms. O.D. Gunewardene Mrs. P.T.K. Liyanage – Finance Manager
Mr S.C. Ganegoda Mr. R.B. Gaspe – Head – Strategic Business
Telephone: +94-11-2316316 (13 lines)
Mr. S.H. Goodman Development Unit
Facsimile: +94-11-2423544
Mr. L.N.S.K. Samarasinghe Mr. K.I.S. Perera – Business Development
E-mail: singer@singersl.com
(Alternate to Mr. M.H. Jamaldeen) Mananger – Whole Sale (South)
Website: www.singer.lk
Company Registration Number Mr. K.K.L.P. Yatiwella (Alternate to Mr. S.C. Ganegoda) Mr. E.R.A. Silva – Business Development
New – PQ 160 Mr. H.P.S. Perera Manager – Institutional Sales
Old – PBS 802 (S.P.) (Alternate to Mr. M.H. Wijewardene) Mr. K.D.S. Kanishka –Senior Manager – Promotions
Mr. T.U.S. Peiris – Business Development
Tax Payer Identification Number Senior Management
Manager – SISIL
124008026 Mr. M.H. Wijewardene – Chief Executive Officer Mr. S.M.D.S.K. Jayatilake – Senior Manager –
Mr. L.N.S.K. Samarasinghe – Director Marketing Human Resources
Bankers Mr. S. Ramanathan-Director – Logistics Mr. M. Hanas – Business Development Manager –
Bank of Ceylon Mr. J. Mendis – Credit Director Digital Media
Commercial Bank of Ceylon PLC Mr. H.A.P.S. Perera-Factory Director – Mr. G.T. Galagederage – Senior Manager –
Deutsche Bank Sri Lanka Piliyandala Factory Research & Development
Hatton National Bank PLC Mr. K.K.L. Yatiwella – Finance Director Mr. T.W.S.M. Perera – Senior Manager –
MCB Bank Sri Lanka Mr. L.A.D.K. Perera-Director – Digital Media
Nations Trust Bank PLC Information Technology Dr. M Balasuriya – Head of Regulatory & Quality
NDB Bank PLC Mr. B.T.L. Mendis-Director – Commercial Assuarance
Pan Asia Bank PLC Mr. K.D.J.M. Perera – Director – Operations Mr. U. Ganehiarachchi – Business Development
People’s Bank Mr. T. Amarasuriya – Chief Executive Officer – Manager – Whole Sale (North)
Seylan Bank PLC Singer Finance (Lanka) PLC
Sampath Bank PLC Mr. V. Tennakoon – Director – Sales
Standard Chartered Bank (Sri Lanka) Limited Mr. R. Kulasuriya – Director – Human Resources
The Hongkong & Shanghai Banking Corporation and Business Integration
Union Bank PLC Mr. A.P. Manorathna – Deputy Director – Services
Mr. D.B. Wijesundara – Deputy Director – Marketing
Auditors
Mr. M.I. Carder – Head of Treasury & Investor
KPMG Relations
Chartered Accountants Mr. G.A.K. Weerasuriya-Senior Manager Inventory
No. 32A, Sir Mohamed Macan Markar Mawatha, Mr. A.U. Karunarathne-Senior Manager –
P.O. Box 186, Merchandising & Promotions
Colombo 3 Mr. T.G.S. Perera-Senior Manager – Field
Sri Lanka Inventory Operations
Registrars Mr. I.A.S. Kolombage – Commercial Manager
Mr. Priyanjith Meegoda – Head of Risk Management
Hayleys Group Services (Pvt) Limited
Mr. V. Gomes – Head of Financial Services
No. 400, Deans Road,
Mr. W.L.I.A. Gunathilake – Business Development
Colombo 10,
Manager – Mega & Singer Homes Channel
Sri Lanka.
Mr. K.R.L. Perera – Group Administration Manager
Company Secretaries Mr. A.R.N.P.K. Wijesundara-Sales Manager –
Hayleys Group Services (Pvt) Limited Agro & Transportation
No. 400, Deans Road, Mr. S.H. Perera – Senior Manager –
Colombo 10, Budget & Planning
Sri Lanka Mr. T.J. Martyn-Senior Manager – Apparel Solutions

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SINGER (SRI LANKA) PLC

SINGER (SRI LANKA) PLC ANNUAL REPORT 2018/19

6 Vision/Mission/Values 14 Chairman’s Message 26 Operating Environment

35 101 161 271

178 Statement of Changes in 289 Distribution Network

294 Notice of Annual

Enclosed Form of Proxy

ABOUT THIS REPORT

Incorporated as a Limited Liability Company. 2013

Singer commenced manufacturing of furniture and agricultural

2000 Changed the Financial year of the Company to 31st March

AWARDS AND ACCOLADES

Great Place to Work – Dell partner awards – Elite member in

Gold Award – Peoples Award – Peoples Durable

Group Revenue – Net 58,505,395 65,122,305 (10.2) 43,617,889 50,910,033 (14.3)

442 retail shops Multiple brands, unmatched

over 9 million over 1.3 million

2,798 5th consecutive year singer Core Unique

Social and Environmental Capital

CSR – Dedicated to improve education, sports and health.

REVIEW PERIOD AT A GLANCE

February Peoples Awards.

Singer Sri Lanka will

The year under review was a challenging year. Lower growth in

All these facts resulted in an adverse impact to the local

Since assuming my position

The year under review proved to be a challenging year

Since assuming my position as Chief Executive Officer in

2018 also marked a year since Hayleys PLC acquired Singer

Mr. Deepal Sooriyaarachchi Mr. Dumith Fernando Mr. Mohamed Hisham

Mr. Wijeyeratne serves as a Non-Executive

Mr. K.D.J.M. Perera Mr. T. Amarasuriya Mr. V. Tennakoon Mr. R. Kulasuriya

Mr. T.W.S.M. Perera Dr. M. Balasuriya Mr. U. Ganehiarachchi

While South Asia is the fastest

zz Distribution rights for renowned brands

z z Property, plant and equipment

z z Maintains real time ERP system and

Data base Processes

z z Suppliers and business partners

z z Awards and accolades

z z Unique hire purchase system to

provide customer financing for value creation

zz Over one million loyalty card members

z z Singer call centre and Facebook fans

z z Reputed after sales service

z z Over 1,080 dealers and distributors

z z 14 Service centres and 384 service

Social and Environmental Capital

For Investors zz S tability

Impact of the outputs on the stakeholders

z z Profits zz Capital gains through share price

z z A loyal shareholder base

z z Growth in market share

z z A Great Place to Work z z Work life balance

For Suppliers and

z z An integrated supply chain

z z Long-term relationship and security

For Government Tax revenue

zz Taxes, duties and levies zz Economic growth

z z Economic opportunities z z Employment

For Customers zz A loyal and satisfied

zz Flexible financing options for purchases z z Choice of products and services

z z Payment of utility bills through z z Affordability