Alumex Prospectus On CSE Site

Alumex Limited
Prospectus

Invitation to Invest in the
Initial Public Offering

through an Offer for Subscription of Seventeen Million Eight Hundred and Fifty Seven Thousand
Two Hundred (17,857,200) Ordinary Voting Shares at Rs. 14/- per Share and

an Offer for Sale of Forty Two Million Three Thousand Four Hundred (42,003,400)
Ordinary Voting Shares at Rs. 14/- per Share

To be listed on the Diri Savi Board of the Colombo Stock Exchange

Financial Advisors and Managers to the Offering Registrars to the Offering

INVITATION TO THE INVESTOR

This invitation represents an opportunity to participate in the future
growth prospects of Alumex Group, the premier manufacturer of
aluminium extrusions and market leader* in Sri Lanka since 1988.
Alumex Limited (Alumex) is a subsidiary of Hayleys PLC, a diversified
Sri Lankan multinational with multifaceted manufacturing operations
and capabilities with products marketed in over 80 countries across
the globe.

The quest for continuous improvement, ongoing infrastructure
development and the growth in the retail sector have established
Alumex as a dominant player in the Sri Lankan aluminium industry.
The Company has also entered in to licensing agreements with globally
renowned manufacturers of aluminium extrusions and accessories in
the world to manufacture high end aluminium profiles.

Through this Prospectus, Alumex invites the public to subscribe for the
Offering of Fifty Nine Million Eight Hundred and Sixty Thousand Six
Hundred (59,860,600) Ordinary Voting Shares comprising of an Offer
for Subscription tranche and an Offer for Sale tranche amounting to
Seventeen Million Eight Hundred and Fifty Seven Thousand Two
Hundred (17,857,200) and Forty Two Million Three Thousand Four
Hundred (42,003,400) Shares respectively, at the Share Price of Rs.
14.00 per Share.

In this document, the prospective investor will find detailed
information about Alumex Group and its business operations in
addition to other statutory information relating to the Offering.

The Board of Directors of the Company urges the investing public to
read this Prospectus carefully prior to making an investment decision.

*Source: Data One import statistics and Annual Reports of the listed peers
I|Alumex Limited Inital Public Ofering
i | Alumex Limited Initial Public Offering

This Prospectus is dated February 17, 2014.

FOR ENQUIRIES, PLEASE CONTACT THE MANAGERS TO THE OFFERING
Registration of the Prospectus
A copy of this Prospectus has been delivered for registration to the Registrar General of Companies in
Sri Lanka in accordance with the Companies Act No. 07 of 2007 (the Companies Act). The following
documents were attached to the copy of the Prospectus delivered to the Registrar General of Companies in
Sri Lanka:
1) The written consent by the Financial Advisors and Managers to the Offering, Auditors and Reporting
Accountants to the Company and to the Offering, Company Secretaries, Lawyer to the Offering, Bankers
to the Company, Bankers to the Offering and Registrars to the Offering for the inclusion of their
respective names in this Prospectus.
2) The written consent by the Auditors to the Offering and to the Company that they have given their
written consent to include their statement in the Prospectus in the form and context in which it is
included.
3) A declaration by each of the Directors of the Company in terms of the Companies Act, confirming that
each of them have read the provisions of the Companies Act and the CSE Listing Rules relating to the
issue of a Prospectus and that those provisions have been complied with.
The said Financial Advisors and Managers to the Offering, Auditors and Reporting Accountants to the
Company and to the Offering, Company Secretaries, Lawyer to the Offering, Bankers to the Offering, Bankers
to the Company, and Registrars to the Offering, have not withdrawn such consent, before the delivery of a
copy of the Prospectus for registration with the Registrar General of Companies in Sri Lanka.
Registration of the Prospectus in Jurisdictions Outside of Sri Lanka
This Prospectus has not been registered with any authority outside of Sri Lanka. Non-resident investors may
be affected by the laws of the jurisdiction of their residence. Such investors are responsible to comply with
the laws relevant to the country of residence and the laws of Sri Lanka, when making the investment.
Responsibility for the Content of the Prospectus
This Prospectus has been prepared from information provided by Alumex Limited (hereinafter referred to as
Alumex or the Company) and from publicly available sources. The Directors of the Company have seen
and approved this Prospectus and collectively and individually, accept full responsibility for the accuracy of
the information given and confirm that after making all reasonable enquires and to the best of their
knowledge and belief, there are no other facts the omission of which would make any statement herein
misleading or inaccurate.
Where representations regarding the future performance of Alumex have been given in this Prospectus, such
representations have been made after due and careful enquiry of the information available to Alumex and
making assumptions that are considered to be reasonable at the present point in time in their best
judgement.
The delivery of this Prospectus shall not under any circumstance constitute a representation or create any implication
or suggestion that there has been no material change in the affairs of the Company since the date of this Prospectus.
If you are in doubt regarding the contents of this document, you should consult your stockbroker, bank manager,
lawyer or any other professional advisor.
Alumex Limited Initial Public Offering | ii

Alumex accepts responsibility for the information contained in this Prospectus. While the Company has taken
reasonable care to ensure full and fair disclosure of information, prospective investors are advised to
carefully read this Prospectus and rely on their own examination and assessment of the Company including
the risks involved prior to making any investment decision.
Representation
No person is authorised to give any information or make any representation not contained in this Prospectus
and if given or made, any such information or representation must not be relied upon as having been
authorised by the Company.
Forward Looking Statements
Any statements included in this Prospectus that are not statements of historical fact constitute Forward
Looking Statements. These can be identified by the use of forward looking terms such as expect,
anticipate, intend, may, plan to, believe, could and similar terms or variations of such terms.
However, these words are not the exclusive means of identifying Forward Looking Statements. As such, all or
any statements pertaining to expected financial position, business strategy, plans and prospects of the
Company are classified as Forward Looking Statements.
Such Forward Looking Statements involve known and unknown risks, uncertainties and other factors
including but not limited to regulatory changes in the sectors in which the Company operates and its ability to
respond to them, the Companys ability to successfully adapt to technological changes, exposure to market
risks, general economic and fiscal policies of Sri Lanka, inflationary pressures, interest rate volatilities, the
performance of financial markets both globally and locally, changes in domestic and foreign laws, regulation
of taxes and changes in competition in the industry and further uncertainties that may or may not be in the
control of the Company.
Such factors may cause actual results, performance and achievements to materially differ from any future
results, performance or achievements expressed or implied by Forward Looking Statements herein. Forward
Looking Statements are also based on numerous assumptions regarding the Companys present and future
business strategies and the environment in which the Company will operate in the future.
Given the risks and uncertainties that may cause the Companys actual future results, performance or
achievements to materially differ from that expected, expressed or implied by Forward Looking Statements in
this Prospectus, investors are advised not to place sole reliance on such statements.
Investment Considerations
It is important that this Prospectus is read carefully prior to making an investment decision. For information
concerning certain risk factors, which should be considered by prospective investors, see Investment
Consideration and Associated Risks in Section 12.0 of this Prospectus.
Presentation of Currency Information and Other Numerical Data
The financial statements of the Company and currency values of economic data or industry data in a local
context will be expressed in Sri Lanka Rupees. References in the Prospectus to LKR, Rupees or Rs. are to
the lawful currency of Sri Lanka.
Certain numerical figures in the Prospectus have been subject to rounding adjustments, accordingly
numerical figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that
precede them.

Alumex Limited Inital Public Ofering|II
Alumex Limited Initial Public Offering | ii

Alumex accepts responsibility for the information contained in this Prospectus. While the Company has taken
reasonable care to ensure full and fair disclosure of information, prospective investors are advised to
carefully read this Prospectus and rely on their own examination and assessment of the Company including
the risks involved prior to making any investment decision.
Representation
No person is authorised to give any information or make any representation not contained in this Prospectus
and if given or made, any such information or representation must not be relied upon as having been
authorised by the Company.
Forward Looking Statements
Any statements included in this Prospectus that are not statements of historical fact constitute Forward
Looking Statements. These can be identified by the use of forward looking terms such as expect,
anticipate, intend, may, plan to, believe, could and similar terms or variations of such terms.
However, these words are not the exclusive means of identifying Forward Looking Statements. As such, all or
any statements pertaining to expected financial position, business strategy, plans and prospects of the
Company are classified as Forward Looking Statements.
Such Forward Looking Statements involve known and unknown risks, uncertainties and other factors
including but not limited to regulatory changes in the sectors in which the Company operates and its ability to
respond to them, the Companys ability to successfully adapt to technological changes, exposure to market
risks, general economic and fiscal policies of Sri Lanka, inflationary pressures, interest rate volatilities, the
performance of financial markets both globally and locally, changes in domestic and foreign laws, regulation
of taxes and changes in competition in the industry and further uncertainties that may or may not be in the
control of the Company.
Such factors may cause actual results, performance and achievements to materially differ from any future
results, performance or achievements expressed or implied by Forward Looking Statements herein. Forward
Looking Statements are also based on numerous assumptions regarding the Companys present and future
business strategies and the environment in which the Company will operate in the future.
Given the risks and uncertainties that may cause the Companys actual future results, performance or
achievements to materially differ from that expected, expressed or implied by Forward Looking Statements in
this Prospectus, investors are advised not to place sole reliance on such statements.
Investment Considerations
It is important that this Prospectus is read carefully prior to making an investment decision. For information
concerning certain risk factors, which should be considered by prospective investors, see Investment
Consideration and Associated Risks in Section 12.0 of this Prospectus.
Presentation of Currency Information and Other Numerical Data
The financial statements of the Company and currency values of economic data or industry data in a local
context will be expressed in Sri Lanka Rupees. References in the Prospectus to LKR, Rupees or Rs. are to
the lawful currency of Sri Lanka.
Certain numerical figures in the Prospectus have been subject to rounding adjustments, accordingly
numerical figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that
precede them.

III|Alumex Limited Inital Public Ofering
iii | Alumex Limited Initial Public Offering

Presentation of Macroeconomic and Industry Data
Economic and Industry data used throughout this Prospectus are derived from the Central Bank of Sri Lanka
(CBSL), International Aluminium Association, London Metal Exchange, and various other industry data
sources, which the Company believes to be reliable, but the accuracy and completeness of that information is
not guaranteed. Similarly, industry surveys and other publications, while believed to be reliable, have not
been independently verified and neither the Company nor the Managers to the Offering make any
representation as to the accuracy of that information.

The Colombo Stock Exchange (CSE) has taken reasonable care to ensure full and fair disclosure of
information in this Prospectus. However, the CSE assumes no responsibility for accuracy of the statements
made, opinions expressed or reports included in this Prospectus. The pricing of the Shares issued herein
has been decided by the Company.

Alumex Limited Initial Public Offering | iv

OFFERING AT A GLANCE
TOTAL NUMBER OF ORDINARY VOTING SHARES OFFERED 59,860,600
NUMBER OF ORDINARY VOTING SHARES OFFERED FOR SALE
REFERRED TO AS OFFER FOR SALE
42,003,400
NUMBER OF ORDINARY VOTING SHARES OFFERED FOR
SUBSCRIPTION REFERRED TO AS OFFER FOR SUBSCRIPTION
17,857,200
PRICE PER SHARE ON OFFER RS. 14/-
TOTAL SUBSCRIPTION/CONSIDERATION TO BE RECEIVED BY
ALUMEX LIMITED AND SELLING SHAREHOLDERS
RS. 838,048,400/-
CONSIDERATION TO BE RECEIVED BY THE SELLING
SHAREHOLDERS THROUGH THE OFFER FOR SALE
RS. 588,047,600/-
SUBSCRIPTION TO BE RECEIVED BY ALUMEX LIMITED
THROUGH THE OFFER FOR SUBSCRIPTION
RS. 250,000,800/-
MINIMUM INVESTMENT
(MINIMUM INVESTMENT WILL BE ALLOTTED TO ALL SUCCESSFUL
APPLICANTS ON THE OFFERING)
100 SHARES (RS. 1,400/-)
APPLICATION IN EXCESS OF MINIMUM
SUBSCRIPTION SHOULD BE IN MULTIPLES OF
100 SHARES
OPENING DATE OF OFFERING MARCH 06, 2014
CLOSING DATE OF OFFERING
MARCH 25, 2014
OR THE DAY ON WHICH THE OFFERING
BECOMES OVERSUBSCRIBED, WHICHEVER IS
EARLIER
EARLIEST CLOSING DATE OF OFFERING MARCH 06, 2014
CSE LISTING
TO BE LISTED ON THE DIRI SAVI BOARD
OF THE CSE
SUBJECT TO COMPLIANCE WITH THE CSE
LISTING RULES AND SEC DIRECTIVES
Alumex Limited Inital Public Ofering|IV
Alumex Limited Initial Public Offering | iv

OFFERING AT A GLANCE
TOTAL NUMBER OF ORDINARY VOTING SHARES OFFERED 59,860,600
NUMBER OF ORDINARY VOTING SHARES OFFERED FOR SALE
REFERRED TO AS OFFER FOR SALE
42,003,400
NUMBER OF ORDINARY VOTING SHARES OFFERED FOR
SUBSCRIPTION REFERRED TO AS OFFER FOR SUBSCRIPTION
17,857,200
PRICE PER SHARE ON OFFER RS. 14/-
TOTAL SUBSCRIPTION/CONSIDERATION TO BE RECEIVED BY
ALUMEX LIMITED AND SELLING SHAREHOLDERS
RS. 838,048,400/-
CONSIDERATION TO BE RECEIVED BY THE SELLING
SHAREHOLDERS THROUGH THE OFFER FOR SALE
RS. 588,047,600/-
SUBSCRIPTION TO BE RECEIVED BY ALUMEX LIMITED
THROUGH THE OFFER FOR SUBSCRIPTION
RS. 250,000,800/-
MINIMUM INVESTMENT
(MINIMUM INVESTMENT WILL BE ALLOTTED TO ALL SUCCESSFUL
APPLICANTS ON THE OFFERING)
100 SHARES (RS. 1,400/-)
APPLICATION IN EXCESS OF MINIMUM
SUBSCRIPTION SHOULD BE IN MULTIPLES OF
100 SHARES
OPENING DATE OF OFFERING MARCH 06, 2014
CLOSING DATE OF OFFERING
MARCH 25, 2014
OR THE DAY ON WHICH THE OFFERING
BECOMES OVERSUBSCRIBED, WHICHEVER IS
EARLIER
EARLIEST CLOSING DATE OF OFFERING MARCH 06, 2014
CSE LISTING
TO BE LISTED ON THE DIRI SAVI BOARD
OF THE CSE
SUBJECT TO COMPLIANCE WITH THE CSE
LISTING RULES AND SEC DIRECTIVES
V|Alumex Limited Inital Public Ofering
v | Alumex Limited Initial Public Offering

TABLE OF CONTENTS

1.0 CORPORATE INFORMATION ............................................................................................................................................... 1
2.0 RELEVANT PARTIES TO THE OFFERING ............................................................................................................................... 4
3.0 ABBREVIATIONS USED IN THE PROSPECTUS ....................................................................................................................... 5
4.0 GLOSSARY OF TERMS RELATED TO THE OFFERING ............................................................................................................. 7
5.0 DETAILS OF THE OFFERING ............................................................................................................................................... 10
5.1 The Offering ................................................................................................................................................................. 10
5.2 Selling Shareholders .................................................................................................................................................... 10
5.3 Nature of the New Shares/Nature of the Existing Shares on Offer ............................................................................. 11
5.4 Share Price ................................................................................................................................................................... 11
5.5 Size of the Offering ...................................................................................................................................................... 11
5.6 Objectives of the Offering ............................................................................................................................................ 11
5.7 Listing ........................................................................................................................................................................... 13
5.8 Cost of the Offering ..................................................................................................................................................... 14
5.9 Brokerage .................................................................................................................................................................... 14
5.10 Minimum Subscription and Underwriting ................................................................................................................... 14
5.11 Opening of Subscription List and Closure Date ............................................................................................................ 15
5.12 Inspection of Documents ............................................................................................................................................. 15
5.13 Eligible Applicants ........................................................................................................................................................ 15
5.14 Procedure for Application ............................................................................................................................................ 16
5.15 Payment of Application Monies ................................................................................................................................... 20
5.16 Rejection of Applications ............................................................................................................................................. 23
5.17 Banking of Payments ................................................................................................................................................... 24
5.18 Returning of Monies of Rejected Applications ............................................................................................................ 24
5.19 Allocation of Shares on Offer/Basis of Allocation ........................................................................................................ 24
5.20 Refunds on Applications .............................................................................................................................................. 25
5.21 Successful Applicants and CDS Lodgement .................................................................................................................. 27
5.22 Declaration to the CSE and Secondary Market Trading ............................................................................................... 27
6.0 OVERVIEW OF THE ALUMINIUM INDUSTRY ..................................................................................................................... 28
6.1 Overview ...................................................................................................................................................................... 28
6.2 Aluminium Production Process .................................................................................................................................... 28
6.3 Markets for Aluminium ................................................................................................................................................ 30
6.4 Aluminium Industry in Sri Lanka .................................................................................................................................. 30
7.0 BUSINESS OPERATIONS OF ALUMEX GROUP .................................................................................................................... 33
7.1 Group Structure ........................................................................................................................................................... 33
7.2 Vision and Mission ....................................................................................................................................................... 35
7.3 Values of Alumex Group .............................................................................................................................................. 36
7.4 Business Processes ...................................................................................................................................................... 36
7.5 Current Product and Service Portfolio ......................................................................................................................... 40
7.6 Market Structure ......................................................................................................................................................... 41
7.7 Market Segmentation and Positioning ........................................................................................................................ 41
7.8 Operational Markets .................................................................................................................................................... 42
7.9 Services ........................................................................................................................................................................ 42
7.10 International Standards and Accreditations ................................................................................................................ 43
7.11 International Affiliations .............................................................................................................................................. 44
7.12 Projects Undertaken .................................................................................................................................................... 46
7.13 Consolidation of Operations ........................................................................................................................................ 50
7.14 Core Competencies of Alumex Group ......................................................................................................................... 52
7.15 Accolades and Awards ................................................................................................................................................. 55
7.16 Human Resources ........................................................................................................................................................ 55
Alumex Limited Initial Public Offering | vi

7.17 Corporate Social Responsibility ................................................................................................................................... 56
7.18 Future Direction of Alumex Group .............................................................................................................................. 58
7.19 Major Assumptions Relating to Future Plans of Alumex Group .................................................................................. 60
8.0 CORPORATE STRUCTURE.................................................................................................................................................. 61
8.1 The Board of Directors of Alumex Limited ................................................................................................................... 61
8.2 Profiles of the Board of Directors ................................................................................................................................ 61
8.3 Other Directorships Held by the Board of Directors .................................................................................................... 64
8.4 Board of Directors of the Subsidiary Companies ......................................................................................................... 71
8.5 Directors Interest in Shares ........................................................................................................................................ 71
8.6 Directors Emoluments ................................................................................................................................................ 72
8.7 Directors Interests in Assets ....................................................................................................................................... 72
8.8 Directors Interests in Contracts .................................................................................................................................. 73
8.9 Statement Board of Directors ................................................................................................................................... 73
8.10 Corporate Governance Practices ................................................................................................................................. 73
8.11 Corporate Management of Alumex Limited ................................................................................................................ 75
8.12 Corporate Managements Emoluments ....................................................................................................................... 76
8.13 Statement Chairman/Chief Executive ....................................................................................................................... 76
9.0 OTHER COMPANY INFORMATION .................................................................................................................................... 77
9.1 Relationship with Key Customers and Suppliers of Alumex Limited ............................................................................ 77
9.2 Dividend Policy ............................................................................................................................................................ 77
9.3 Details of Material Indebtedness ................................................................................................................................. 78
9.4 Working Capital ........................................................................................................................................................... 78
9.5 Litigation, Disputes and Contingent Liabilities ............................................................................................................. 79
9.6 Mortgages and Charges on Assets ............................................................................................................................... 79
9.7 Material Contracts ....................................................................................................................................................... 79
9.8 Details of Commissions Paid ........................................................................................................................................ 79
9.9 Details of Benefits Paid to Promoters .......................................................................................................................... 79
10.0 CAPITAL STRUCTURE ........................................................................................................................................................ 80
10.1 An Overview of the Stated Capital ............................................................................................................................... 80
10.2 Share Split .................................................................................................................................................................... 81
10.3 Transfer of Shares of Alumex Limited .......................................................................................................................... 81
10.4 Shareholders of Alumex Limited .................................................................................................................................. 81
10.5 Details Pertaining to the locked-in Shares ................................................................................................................... 82
10.6 Details of Other Changes to Stated Capital .................................................................................................................. 83
10.7 Details of Convertible Debt Securities ......................................................................................................................... 83
10.8 Details of Shares Sold Privately in Conjunction with the Offering ............................................................................... 83
10.9 Free Transferability of Shares ...................................................................................................................................... 83
10.10 Take-over Offers .......................................................................................................................................................... 84
11.0 MANAGEMENT DISCUSSION AND ANALYSIS .................................................................................................................... 85
11.1 Summarised Financial Statements of Alumex Group for the Five Years Ended March 31, 2013 ................................. 85
11.2 Performance of Alumex Group for the Five Years Ended March 31, 2013 .................................................................. 86
11.3 Recent Performance of Alumex Group ........................................................................................................................ 87
12.0 INVESTMENT CONSIDERATION AND ASSOCIATED RISKS .................................................................................................. 90
12.1 Risks Relating to Macro-Environmental Factors .......................................................................................................... 90
12.2 Risks Relating to the Existing Businesses of Alumex Group ......................................................................................... 91
12.3 Risks Relating to Future Plans ...................................................................................................................................... 92
12.4 Capital Market Related Risks ....................................................................................................................................... 93
13.0 TAXATION AND EXCHANGE CONTROL .............................................................................................................................. 94
13.1 Corporate Taxation ...................................................................................................................................................... 94
13.2 Economic Service Charge ............................................................................................................................................. 94
13.3 Value Added Tax .......................................................................................................................................................... 95
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Alumex Limited Initial Public Offering | vi

7.17 Corporate Social Responsibility ................................................................................................................................... 56
7.18 Future Direction of Alumex Group .............................................................................................................................. 58
7.19 Major Assumptions Relating to Future Plans of Alumex Group .................................................................................. 60
8.0 CORPORATE STRUCTURE.................................................................................................................................................. 61
8.1 The Board of Directors of Alumex Limited ................................................................................................................... 61
8.2 Profiles of the Board of Directors ................................................................................................................................ 61
8.3 Other Directorships Held by the Board of Directors .................................................................................................... 64
8.4 Board of Directors of the Subsidiary Companies ......................................................................................................... 71
8.5 Directors Interest in Shares ........................................................................................................................................ 71
8.6 Directors Emoluments ................................................................................................................................................ 72
8.7 Directors Interests in Assets ....................................................................................................................................... 72
8.8 Directors Interests in Contracts .................................................................................................................................. 73
8.9 Statement Board of Directors ................................................................................................................................... 73
8.10 Corporate Governance Practices ................................................................................................................................. 73
8.11 Corporate Management of Alumex Limited ................................................................................................................ 75
8.12 Corporate Managements Emoluments ....................................................................................................................... 76
8.13 Statement Chairman/Chief Executive ....................................................................................................................... 76
9.0 OTHER COMPANY INFORMATION .................................................................................................................................... 77
9.1 Relationship with Key Customers and Suppliers of Alumex Limited ............................................................................ 77
9.2 Dividend Policy ............................................................................................................................................................ 77
9.3 Details of Material Indebtedness ................................................................................................................................. 78
9.4 Working Capital ........................................................................................................................................................... 78
9.5 Litigation, Disputes and Contingent Liabilities ............................................................................................................. 79
9.6 Mortgages and Charges on Assets ............................................................................................................................... 79
9.7 Material Contracts ....................................................................................................................................................... 79
9.8 Details of Commissions Paid ........................................................................................................................................ 79
9.9 Details of Benefits Paid to Promoters .......................................................................................................................... 79
10.0 CAPITAL STRUCTURE ........................................................................................................................................................ 80
10.1 An Overview of the Stated Capital ............................................................................................................................... 80
10.2 Share Split .................................................................................................................................................................... 81
10.3 Transfer of Shares of Alumex Limited .......................................................................................................................... 81
10.4 Shareholders of Alumex Limited .................................................................................................................................. 81
10.5 Details Pertaining to the locked-in Shares ................................................................................................................... 82
10.6 Details of Other Changes to Stated Capital .................................................................................................................. 83
10.7 Details of Convertible Debt Securities ......................................................................................................................... 83
10.8 Details of Shares Sold Privately in Conjunction with the Offering ............................................................................... 83
10.9 Free Transferability of Shares ...................................................................................................................................... 83
10.10 Take-over Offers .......................................................................................................................................................... 84
11.0 MANAGEMENT DISCUSSION AND ANALYSIS .................................................................................................................... 85
11.1 Summarised Financial Statements of Alumex Group for the Five Years Ended March 31, 2013 ................................. 85
11.2 Performance of Alumex Group for the Five Years Ended March 31, 2013 .................................................................. 86
11.3 Recent Performance of Alumex Group ........................................................................................................................ 87
12.0 INVESTMENT CONSIDERATION AND ASSOCIATED RISKS .................................................................................................. 90
12.1 Risks Relating to Macro-Environmental Factors .......................................................................................................... 90
12.2 Risks Relating to the Existing Businesses of Alumex Group ......................................................................................... 91
12.3 Risks Relating to Future Plans ...................................................................................................................................... 92
12.4 Capital Market Related Risks ....................................................................................................................................... 93
13.0 TAXATION AND EXCHANGE CONTROL .............................................................................................................................. 94
13.1 Corporate Taxation ...................................................................................................................................................... 94
13.2 Economic Service Charge ............................................................................................................................................. 94
13.3 Value Added Tax .......................................................................................................................................................... 95
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vii | Alumex Limited Initial Public Offering

13.4 Nation Building Tax ...................................................................................................................................................... 95
13.5 Withholding Tax on Dividends ..................................................................................................................................... 95
13.6 Stamp Duty .................................................................................................................................................................. 95
13.7 Share Transaction Levy ................................................................................................................................................ 95
13.8 Exchange Control ......................................................................................................................................................... 95
14.0 THE COLOMBO STOCK EXCHANGE ................................................................................................................................... 97
14.1 Governance.................................................................................................................................................................. 97
14.2 Branches of the CSE ..................................................................................................................................................... 97
14.3 Stock Market Indices ................................................................................................................................................... 97
14.4 Trading on the CSE ....................................................................................................................................................... 97
14.5 Trading Sessions .......................................................................................................................................................... 97
14.6 Settlement Procedure .................................................................................................................................................. 98
14.7 Transaction Costs ......................................................................................................................................................... 98
14.8 Recent Performance .................................................................................................................................................... 99
15.0 STATUTORY DECLARATIONS .......................................................................................................................................... 103
15.1 Signing of Prospectus and Statutory Declaration by the Directors ............................................................................ 103
15.2 Statutory Declaration by Financial Advisors and Managers to the Offering .............................................................. 104
15.3 Statutory Declaration by the Company ..................................................................................................................... 104
16.0 FINANCIAL STATEMENTS AND AUDITORS REPORT ........................................................................................................ 105
16.1 Accountants Report for Inclusion in the Prospectus ................................................................................................. 105
16.2 Five Year Summary of Financial Statements .............................................................................................................. 108
16.3 Audit Report and Financial Statements as at March 31, 2013 ................................................................................... 114
16.4 Reviewed Financial Statements for Nine Months Ended December 31, 2013 .......................................................... 153
ANNEX A PUBLIC HOLDING ......................................................................................................................................................... 183
ANNEX B COLLECTION POINTS .................................................................................................................................................... 187
ANNEX C CUSTODIAN BANKS ..................................................................................................................................................... 197

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Alumex Limited Initial Public Offering | viii

INDEX ON TABLES AND FIGURES ILLUSTRATED IN THE PROSPECTUS

LIST OF TABLES
Table 5-1: Offering Tranches .................................................................................................................................................................... 10
Table 5-2: Categories of Investors ............................................................................................................................................................ 10
Table 5-3: Divestiture of Existing Shares ................................................................................................................................................... 10
Table 5-4: Cost Break Down of Powder Coating Facility ........................................................................................................................... 12
Table 5-5: Identification Information ........................................................................................................................................................ 19
Table 6-1: Performance Properties and Applications of Aluminium ......................................................................................................... 28
Table 6-2: Aluminium Products in Sri Lanka ............................................................................................................................................. 31
Table 6-3: Real GDP and Construction at Constant (2002) Prices ............................................................................................................. 31
Table 7-1: Plant Specifications .................................................................................................................................................................. 38
Table 7-2: Production Capacity ................................................................................................................................................................. 40
Table 7-3: International Affiliation of Alumex Group ............................................................................................................................... 45
Table 7-4: Commercial and Industrial Projects ......................................................................................................................................... 46
Table 7-5: Residential Projects ................................................................................................................................................................. 47
Table 7-6: Commercial and Industrial Projects ......................................................................................................................................... 47
Table 7-7: International Projects .............................................................................................................................................................. 49
Table 7-8: Consolidation of Operations .................................................................................................................................................... 51
Table 7-9: Human Resources of Alumex Group ........................................................................................................................................ 56
Table 8-1: Board of Directors of Alumex Limited ...................................................................................................................................... 61
Table 8-2: Alternate Directors of Alumex Limited .................................................................................................................................... 61
Table 8-3: Other Directorships Held by Board of Directors of Alumex Limited ........................................................................................ 64
Table 8-4: Board of Directors of Avro Enterprises (Private) Limited and Alco Industries (Private) Limited .............................................. 71
Table 8-5: Directors Direct Shareholding in Alumex Limited ................................................................................................................... 71
Table 8-6: Share Transactions of Directors in Alumex Limited ................................................................................................................. 72
Table 9-1: Loans of Alumex Group as at December 31, 2013 ................................................................................................................... 78
Table 9-2: Leasing and Hire Purchase Commitments of Alumex Limited as at December 31, 2013 ......................................................... 78
Table 9-3: Capital Commitments as at December 31, 2013 ...................................................................................................................... 78
Table 10-1: Stated Capital of Alumex Limited ........................................................................................................................................... 80
Table 10-2: Changes in Stated Capital of Alumex Limited ........................................................................................................................ 80
Table 10-3: Transfer of Shares by Shareholders ....................................................................................................................................... 81
Table 10-4: Shareholders of Alumex Limited ............................................................................................................................................ 81
Table 10-5: Locked in Shareholders of Alumex Limited ............................................................................................................................ 82
Table 11-1: Summarised Audited Income Statements of Alumex Group ................................................................................................. 85
Table 11-2: Summarised Audited Statements of Financial Position of Alumex Group ............................................................................ 85
Table 11-3: Summarised Income Statements of Alumex Group ............................................................................................................... 87
Table 11-4: Summarised Statements of Financial Position of Alumex Group .......................................................................................... 87
Table 14-1: Transaction Costs ................................................................................................................................................................... 98
Table 14-2: Stock Market Statistics 2009 2013 .................................................................................................................................... 102

LIST OF FIGURES
Figure 6-1: Aluminium Production Plant ................................................................................................................................................... 28
Figure 6-2: Major Bauxite Producing Countries ........................................................................................................................................ 29
Figure 6-3: Primary Aluminium Production January - October 2013 ........................................................................................................ 29
Figure 6-4: Global Aluminium Consumption ............................................................................................................................................. 30
Figure 6-5: Real GDP Growth Rate and the Construction Sector Growth ................................................................................................. 32
Figure 7-1: Group Structure of Alumex Group .......................................................................................................................................... 33
Figure 7-2: Business Process ..................................................................................................................................................................... 36
Figure 7-3: Market Structure .................................................................................................................................................................... 41
Figure 7-4: Customer Service Offered by Alumex Group .......................................................................................................................... 43
Figure 7-5: Alumex Group Structure as at April 01, 2011 ........................................................................................................................ 50
Figure 7-6: Alumex Groups Distribution Network in Sri Lanka................................................................................................................ 54
Figure 11-1: Total Revenue ....................................................................................................................................................................... 86
Figure 11-2: Total Sales Volume ............................................................................................................................................................... 86
Figure 11-3: Revenue Mix ......................................................................................................................................................................... 86
Figure 11-4: Volume Mix .......................................................................................................................................................................... 86
Figure 11-5: Gross Profit and Margin ........................................................................................................................................................ 87
Figure 11-6: Net Profit and Margin ........................................................................................................................................................... 87
Figure 11-7: Revenue for Nine Months Ended December 31, 2012 and 2013 ......................................................................................... 88
Figure 11-8: Volume for Nine Months Ended December 31, 2012 and 2013 ........................................................................................... 88
Figure 11-9: Gross Profit for Nine Months Ended December 31, 2012 and 2013 ..................................................................................... 88
Figure 11-10: Net Profit for Nine Months Ended December 31, 2012 and 2013 ...................................................................................... 88
1|Alumex Limited Inital Public Ofering

Alumex Limited Initial Public Offering | 1
1.0 CORPORATE INFORMATION

The Company Alumex Limited
Legal Form of the Company A limited liability company incorporated in Sri Lanka on
November 6, 2006 under the Companies Act No. 17 of
1982, re-registered on October 8, 2007 under the
Companies Act No. 7 of 2007 and converted to a public
limited liability company on February 22, 2013
Company Registration Number PV 539 PB
Place of Incorporation Colombo, Sri Lanka
Registered Office Alumex Limited
Sapugaskanda
Makola

Tel: 011 2400332
Fax:011 2400415
Website: www.alumexgroup.com
Company Secretaries Hayleys Group Services (Private) Limited
400, Deans Road
Colombo 10

Tel: 011 2627650
Fax:011 2627645
Auditors to the Company Ernst & Young
Chartered Accountants
201, De Saram Place
Colombo 10

Tel: 011 2463500
Fax: 011 2697369
Bankers to the Company

Commercial Bank of Ceylon PLC
Foreign Branch
Commercial House
21, Sir Razik Fareed Mawatha
Colombo 01

Sampath Bank PLC
Head Office
110, Sir James Peiris Mawatha
Colombo 02

2 |Alumex Limited Initial Public Offering

Bankers to the Company National Development Bank PLC
Head Office
40 Navam Mawatha
Colombo 02

Bank of Ceylon
Corporate Branch
2nd Floor, Head Office
04, Bank of Ceylon Mawatha
Colombo 01

Note: Alumex was incorporated as Alutec Anodising and Machine Tools (Private) Limited and renamed as Alumex
(Private) Limited on November 22, 2012. The Alumex Group has been in operation since 1988 as described in
Section 7.1.1.
Alumex Limited Inital Public Ofering|2

Bankers to the Company National Development Bank PLC
Head Office
40 Navam Mawatha
Colombo 02

Bank of Ceylon
Corporate Branch
2nd Floor, Head Office
04, Bank of Ceylon Mawatha
Colombo 01

Note: Alumex was incorporated as Alutec Anodising and Machine Tools (Private) Limited and renamed as Alumex
(Private) Limited on November 22, 2012. The Alumex Group has been in operation since 1988 as described in
Section 7.1.1.

BOARD OF DIRECTORS OF ALUMEX LIMITED

Mr. Abeyakumar Mohan Pandithage Chairman/Chief Executive
Mr. Rohan Palitha Peris Managing Director/Executive Director
Mr. Dediwela Widanaarachchilage Pramuk Nishantha Dediwela Executive Director
Mr. Sarath Clement Ganegoda Non-Executive Director
Mr. Ranil Prasad Pathirana Non-Executive Director
Mr. Ali Asghar Akbarally Non-Executive Director
Mr. Huzaifa Hamzaally Abdulhusein Non-Executive Director
Dr. Harsha Cabral Independent Non-Executive Director
Mr. Somasiri Munaweera Independent Non-Executive Director
Mr. Aroon Janak Hirdaramani
Alternate to Mr. R.P.Pathirana
Non-Executive Director
Mr. Tyeabally Akbarally
Alternate to Mr. A.A.Akbarally
Non-Executive Director


2.0 RELEVANT PARTIES TO THE OFFERING

Financial Advisors and Managers to the Offering NDB Investment Bank Limited
40, Navam Mawatha
Colombo 02

Tel: 011 2300385
Fax: 011 2300393
Lawyer to the Offering/Legal Advisors Mrs. D P Pieris
Attorney-at-Law and Notary Public
(Solicitor England and Wales)
3/14 D, Kynsey Road
Colombo 08

Tel: 011 4610476
Fax: 011 4614476
Auditors and Reporting Accountants to the Offering Ernst & Young
201, De Saram Place
Colombo 10

Tel: 011 2463500
Fax: 011 2697369
Registrars to the Offering P W Corporate Secretarial (Pvt) Ltd
3/17, Kynsey Road
Colombo 08

Tel:011 4640360
Fax:011 4740588
Bankers to the Offering

Sampath Bank PLC
Colombo 02

Tel: 011 2303050
Fax:011 4712013

2.0 RELEVANT PARTIES TO THE OFFERING

Financial Advisors and Managers to the Offering NDB Investment Bank Limited
40, Navam Mawatha
Colombo 02

Tel: 011 2300385
Fax: 011 2300393
Lawyer to the Offering/Legal Advisors Mrs. D P Pieris
Attorney-at-Law and Notary Public
(Solicitor England and Wales)
3/14 D, Kynsey Road
Colombo 08

Tel: 011 4610476
Fax: 011 4614476
Auditors and Reporting Accountants to the Offering Ernst & Young
201, De Saram Place
Colombo 10

Tel: 011 2463500
Fax: 011 2697369
Registrars to the Offering P W Corporate Secretarial (Pvt) Ltd
3/17, Kynsey Road
Colombo 08

Tel:011 4640360
Fax:011 4740588
Bankers to the Offering

Sampath Bank PLC
Colombo 02

Tel: 011 2303050
Fax:011 4712013

3.0 ABBREVIATIONS USED IN THE PROSPECTUS

Abbreviation Description
AAMT Alutec Anodizing and Machine Tools (Private) Limited
ASI All Share Index
ASRI All Share Total Return Index
ATS Automated Trading System
AWPLR Average Weighted Prime Lending Rate
BOI Board of Investment of Sri Lanka
BOQ Bill of Quantities
CAGR Compound Annual Growth Rate
CBSL Central Bank of Sri Lanka
CCD Circumscribing Diameter
CDS Central Depository Systems (Private) Limited
CSE Colombo Stock Exchange
CSR Corporate Social Responsibility
DUBAL Dubai Aluminium Company Limited
EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation
FCA Fellow of the Institute of Chartered Accountants, Sri Lanka
FCBU Foreign Currency Banking Unit
FCMA Fellow of the Institute of Certified Management Accountants, Sri Lanka
FCMA-UK Fellow of the Chartered Institute of Management Accountants, UK
FY Financial Year
GDP Gross Domestic Product
GoSL Government of Sri Lanka
GRI Global Reporting Initiative
HR Human Resources
ICTAD Institute for Construction Training and Development
IPO Initial Public Offering
ISO International Organization for Standardization
KVA Kilovolt-ampere
LCB Licensed Commercial Bank
LKR Sri Lanka Rupee
LOI Letter of Intent
mm Millimetre
NAITA National Apprentice and Industrial Training Authority of Sri Lanka
NBT Nation Building Tax
NDBIB NDB Investment Bank Limited
NIC National Identity Card
NVQ National Vocational Qualification
PER Price Earnings Ratio


Abbreviaton Descripton
POA Power of Atorney
RGFCA Resident Guest Foreign Currency Accounts
RGRCA Resident Guest Rupee Current Account
RDA Road Development Authority
RTGS Real Time Gross Setlements
RUSAL RUSAL United Company
S&P SL20 Standard & Poor's Sri Lanka 20 Index
SEC Securites and Exchange Commission of Sri Lanka
SIA Securites Investment Account
SLIPS Sri Lanka Inter-bank Payment System
SLS Sri Lanka Standards Insttuton
UAE United Arab of Emirates
UK United Kingdom
USA United States of America
VAT Value Added Tax
VTA Vocatonal Training Insttute
YoY Year on Year

3.0 ABBREVIATIONS USED IN THE PROSPECTUS

Abbreviation Description
AAMT Alutec Anodizing and Machine Tools (Private) Limited
ASI All Share Index
ASRI All Share Total Return Index
ATS Automated Trading System
AWPLR Average Weighted Prime Lending Rate
BOI Board of Investment of Sri Lanka
BOQ Bill of Quantities
CAGR Compound Annual Growth Rate
CBSL Central Bank of Sri Lanka
CCD Circumscribing Diameter
CDS Central Depository Systems (Private) Limited
CSE Colombo Stock Exchange
CSR Corporate Social Responsibility
DUBAL Dubai Aluminium Company Limited
EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation
FCA Fellow of the Institute of Chartered Accountants, Sri Lanka
FCBU Foreign Currency Banking Unit
FCMA Fellow of the Institute of Certified Management Accountants, Sri Lanka
FCMA-UK Fellow of the Chartered Institute of Management Accountants, UK
FY Financial Year
GDP Gross Domestic Product
GoSL Government of Sri Lanka
GRI Global Reporting Initiative
HR Human Resources
ICTAD Institute for Construction Training and Development
IPO Initial Public Offering
ISO International Organization for Standardization
KVA Kilovolt-ampere
LCB Licensed Commercial Bank
LKR Sri Lanka Rupee
LOI Letter of Intent
mm Millimetre
NAITA National Apprentice and Industrial Training Authority of Sri Lanka
NBT Nation Building Tax
NDBIB NDB Investment Bank Limited
NIC National Identity Card
NVQ National Vocational Qualification
PER Price Earnings Ratio


Abbreviaton Descripton
POA Power of Atorney
RGFCA Resident Guest Foreign Currency Accounts
RGRCA Resident Guest Rupee Current Account
RDA Road Development Authority
RTGS Real Time Gross Setlements
RUSAL RUSAL United Company
S&P SL20 Standard & Poor's Sri Lanka 20 Index
SEC Securites and Exchange Commission of Sri Lanka
SIA Securites Investment Account
SLIPS Sri Lanka Inter-bank Payment System
SLS Sri Lanka Standards Insttuton
UAE United Arab of Emirates
UK United Kingdom
USA United States of America
VAT Value Added Tax
VTA Vocatonal Training Insttute
YoY Year on Year

4.0 GLOSSARY OF TERMS RELATED TO THE OFFERING

Alumex Group/Group
Alumex Limited and its subsidiaries
Applicant/s Any investor who submits an Application Form
under this Prospectus
Application Form/Application The application form that constitute part of this
Prospectus through which the investor/s may
apply for the Offered Shares
Board/Board of Directors/Directors The Board of Directors of Alumex
Closure Date The date of closure of the subscription list as set
out in Section 5.1 of this Prospectus
Company/Alumex Alumex Limited
Financial Advisors and Managers to the
Offering/Managers to the Offering
NDB Investment Bank Limited (NDBIB)
Foreign Investor Citizens of Sri Lanka who are resident outside
Sri Lanka and above 18 years of age;
Corporate bodies incorporated or established
outside Sri Lanka;
Foreign citizens above 18 years of age
(irrespective of whether they are resident in
Sri Lanka or overseas);
Regional and country funds approved by the
SEC

Please refer Section 5.13 of this Prospectus for
further details

IPO/Offering
The Offer for Subscription of New Shares and
the Offer for Sale of Vendor Shares proposed to
be offered simultaneously at the Share Price in
terms of this Prospectus.
Local Time Sri Lanka Time

Market Day Any day on which CSE is open for trading
New Shares
Seventeen Million Eight Hundred and Fifty
Seven Thousand Two Hundred (17,857,200) new
Ordinary Voting Shares to be offered by the
Company to the public at the Share Price

Non-Retail Investor Category Investors who do not fall under Retail Individual
Investor Category and Unit Trust Investor
Category

Offer for Sale
An invitation to the Public by the Company for
and on behalf of the Selling Shareholders to
purchase existing Ordinary Shares of the
Company held by the Selling Shareholder, in
terms of Section 5.1
Offer for Subscription
An invitation to the Public by the Company to
subscribe for New Shares in terms of
Section 5.1
Offered Shares
Fifty Nine Million Eight Hundred and Sixty
Thousand Six Hundred (59,860,600) Ordinary
Voting Shares offered to the Public at the Share
Price through this Prospectus
Ordinary Shares/Issued and Paid up Ordinary
Shares/Ordinary Voting Shares/Shares Ordinary voting shares of the Company
Public
The investors qualifying as public as defined in
Annex A
Prospectus
This prospectus dated February 17, 2014 issued
by Alumex
Retail Individual Investor Category Individual investors who subscribe for Offered
Shares up to a value of Rs. 100,000/- (i.e. up to
and inclusive of 7,100 Shares)

Selling Shareholders
Shareholders of the Company offering existing
Ordinary Shares of the Company as morefully
described in Section 5.2, to facilitate a listing of
the Shares of the Company on the CSE
Share Price Rs. 14/- per Share
Stated Capital The stated capital of Alumex
Share Transfer Form
The share transfer form, attached to the
Application Form/Application that constitutes
part of this Prospectus which the Investors shall
complete when completing the Application
Form/Application

4.0 GLOSSARY OF TERMS RELATED TO THE OFFERING

Alumex Group/Group
Alumex Limited and its subsidiaries
Applicant/s Any investor who submits an Application Form
under this Prospectus
Application Form/Application The application form that constitute part of this
Prospectus through which the investor/s may
apply for the Offered Shares
Board/Board of Directors/Directors The Board of Directors of Alumex
Closure Date The date of closure of the subscription list as set
out in Section 5.1 of this Prospectus
Company/Alumex Alumex Limited
Financial Advisors and Managers to the
Offering/Managers to the Offering
NDB Investment Bank Limited (NDBIB)
Foreign Investor Citizens of Sri Lanka who are resident outside
Sri Lanka and above 18 years of age;
Corporate bodies incorporated or established
outside Sri Lanka;
Foreign citizens above 18 years of age
(irrespective of whether they are resident in
Sri Lanka or overseas);
Regional and country funds approved by the
SEC

Please refer Section 5.13 of this Prospectus for
further details

IPO/Offering
The Offer for Subscription of New Shares and
the Offer for Sale of Vendor Shares proposed to
be offered simultaneously at the Share Price in
terms of this Prospectus.
Local Time Sri Lanka Time

Market Day Any day on which CSE is open for trading
New Shares
Seventeen Million Eight Hundred and Fifty
Seven Thousand Two Hundred (17,857,200) new
Ordinary Voting Shares to be offered by the
Company to the public at the Share Price

Non-Retail Investor Category Investors who do not fall under Retail Individual
Investor Category and Unit Trust Investor
Category

Offer for Sale
An invitation to the Public by the Company for
and on behalf of the Selling Shareholders to
purchase existing Ordinary Shares of the
Company held by the Selling Shareholder, in
terms of Section 5.1
Offer for Subscription
An invitation to the Public by the Company to
subscribe for New Shares in terms of
Section 5.1
Offered Shares
Fifty Nine Million Eight Hundred and Sixty
Thousand Six Hundred (59,860,600) Ordinary
Voting Shares offered to the Public at the Share
Price through this Prospectus
Ordinary Shares/Issued and Paid up Ordinary
Shares/Ordinary Voting Shares/Shares Ordinary voting shares of the Company
Public
The investors qualifying as public as defined in
Annex A
Prospectus
This prospectus dated February 17, 2014 issued
by Alumex
Retail Individual Investor Category Individual investors who subscribe for Offered
Shares up to a value of Rs. 100,000/- (i.e. up to
and inclusive of 7,100 Shares)

Selling Shareholders
Shareholders of the Company offering existing
Ordinary Shares of the Company as morefully
described in Section 5.2, to facilitate a listing of
the Shares of the Company on the CSE
Share Price Rs. 14/- per Share
Stated Capital The stated capital of Alumex
Share Transfer Form
The share transfer form, attached to the
Application Form/Application that constitutes
part of this Prospectus which the Investors shall
complete when completing the Application
Form/Application

Unit Holder
An individual who has made an investment in
units not exceeding the value of
Rs. 10,000,000/- in a particular unit trust fund
that subscribes for Shares
[Ref: SEC/LEG/11/06/01]
Unit Trust Investor Category Growth or balanced unit trusts operated by
managing companies licensed by the SEC to
operate such unit trusts, where such unit trust
comprises of not less than 500 Unit Holders
resident in Sri Lanka who together hold at least
50% of that unit trust

Vendor Shares
Forty Two Million Three Thousand and Four
Hundred (42,003,400) Ordinary Voting Shares
offered for sale by the Selling Shareholders to
the Public at the Share Price as detailed in
Section 5.2

5.0 DETAILS OF THE OFFERING

5.1 The Oering
The Oering contemplated herein shall consttute an invitaton made to the Public to subscribe for
Fify Nine Million Eight Hundred and Sixty Thousand Six Hundred (59,860,600) Ordinary Voting
Shares at the Share Price.
The Oering consttutes two tranches, details of which are listed below:
Table 5-1: Oering Tranches
Descripton
Number of
Ordinary Shares
on Oer
Percentage
of Oering
The Oer for Subscripton of New Shares consttutng
5.97% of the Ordinary Shares (post IPO)
17,857,200 29.83%
The Oer for Sale of Vendor Shares consttutng 14.03% of
the Ordinary Shares (post IPO)
42,003,400 70.17%
Total 59,860,600 100.00%
The Oered Shares would be alloted/transferred to the extent possible based on the Applicatons
for Oered Shares, among the following broad investor categories in the proportons given below.
Table 5-2: Categories of Investors
Category Percentage of Oering
Retail Individual Investor Category 40%
Unit Trust Investor Category 10%
Non-Retail Investor Category 50%
100%
5.2 Selling Shareholders
Shareholders mentoned below are oering for sale, a total of Forty Two Million Three Thousand and
Four Hundred (42,003,400) existng Ordinary Shares consttutng approximately 14.03% of the
Ordinary Votng Shares (post IPO) in order to facilitate the listng of the Ordinary Shares on the CSE.
Table 5-3: Divestture of Existng Shares
Selling Shareholder
Number of Shares
Oered
Date of Acquisiton
Hayleys PLC 18,687,700 November 04, 2010
Rosewood (Private) Limited 9,159,700 November 22, 2010
Akbar Brothers (Private) Limited 9,159,700 November 22, 2010
Star Pack Investments (Private) Limited 4,996,300 November 22, 2010
Total 42,003,400
The above listed Selling Shareholders have complied with Rule 2.1.1 (e) (i) of the CSE Listng Rules.
The Selling Shareholders will own approximately 75.95% of the total number of Shares of the
Company, post IPO.


5.0 DETAILS OF THE OFFERING

5.1 The Oering
The Oering contemplated herein shall consttute an invitaton made to the Public to subscribe for
Fify Nine Million Eight Hundred and Sixty Thousand Six Hundred (59,860,600) Ordinary Voting
Shares at the Share Price.
The Oering consttutes two tranches, details of which are listed below:
Table 5-1: Oering Tranches
Descripton
Number of
Ordinary Shares
on Oer
Percentage
of Oering
The Oer for Subscripton of New Shares consttutng
5.97% of the Ordinary Shares (post IPO)
17,857,200 29.83%
The Oer for Sale of Vendor Shares consttutng 14.03% of
the Ordinary Shares (post IPO)
42,003,400 70.17%
Total 59,860,600 100.00%
The Oered Shares would be alloted/transferred to the extent possible based on the Applicatons
for Oered Shares, among the following broad investor categories in the proportons given below.
Table 5-2: Categories of Investors
Category Percentage of Oering
Retail Individual Investor Category 40%
Unit Trust Investor Category 10%
Non-Retail Investor Category 50%
100%
5.2 Selling Shareholders
Shareholders mentoned below are oering for sale, a total of Forty Two Million Three Thousand and
Four Hundred (42,003,400) existng Ordinary Shares consttutng approximately 14.03% of the
Ordinary Votng Shares (post IPO) in order to facilitate the listng of the Ordinary Shares on the CSE.
Table 5-3: Divestture of Existng Shares
Selling Shareholder
Number of Shares
Oered
Date of Acquisiton
Hayleys PLC 18,687,700 November 04, 2010
Rosewood (Private) Limited 9,159,700 November 22, 2010
Akbar Brothers (Private) Limited 9,159,700 November 22, 2010
Star Pack Investments (Private) Limited 4,996,300 November 22, 2010
Total 42,003,400
The above listed Selling Shareholders have complied with Rule 2.1.1 (e) (i) of the CSE Listng Rules.
The Selling Shareholders will own approximately 75.95% of the total number of Shares of the
Company, post IPO.


5.3 Nature of the New Shares/Nature of the Existing Shares on Offer
From the date of allotment, the New Shares shall rank equal and pari passu in all respects with the
existing Ordinary Voting Shares and each New Share shall confer on the holder thereof the right to
one vote on a poll at a meeting of the Company on any resolution, the right to an equal share in any
dividend that may be paid by the Company and the right to an equal share in the distribution of the
surplus assets of the Company in a liquidation.
From the date of completion of the transfer of the Vendor Shares to the Applicant, which date shall
be even to the date of allotment of the New Shares, referred to above, such Shares shall rank pari
passu, in all respects with the existing other Ordinary Shares and the New Shares allotted in terms of
this Prospectus, and such Share shall confer on the holder thereof the right to one vote on a poll at a
meeting of the Company on any resolution, the right to an equal share in any dividend that may be
paid by the Company and the right to an equal share in the distribution of the surplus assets of the
Company in a liquidation.
5.4 Share Price
The IPO Share Price is Rs. 14/- per Share. The Board of Directors is of the opinion, that the IPO Share
Price of the tranche, pertaining to the Offer for Subscription, is fair and reasonable to the Company
and to all existing shareholders of the Company.
5.5 Size of the Offering
If the Offering is fully subscribed, the Company and the Selling Shareholders, shall receive
Rupees Two Hundred and Fifty Million Eight Hundred (Rs. 250,000,800/-) and Rupees Five Hundred
and Eighty Eight Million Forty Seven Thousand Six Hundred (Rs. 588,047,600/-) respectively
constituting a total of Rupees Eight Hundred and Thirty Eight Million Forty Eight Thousand Four
Hundred (Rs. 838,048,400/-).
5.6 Objectives of the Offering
(i) Alumex has experienced a significant increase in demand for its powder coated products in the
recent past and at present operates at almost 100% of its existing powder coating facility. The
Company plans to acquire a new powder coating plant which would double the Companys
existing powder coating capacity of 1800MT per annum to cater to the said increased demand.
Further, it also plans to invest in die manufacturing equipments to cater to the excess demand
arising from powder coated products. Funds amounting to Rupees Two Hundred and Fifty
Million Eight Hundred (Rs. 250,000,800/-) raised via the issue of Seventeen Million Eight
Hundred and Fifty Seven Thousand Two Hundred (17,857,200) New Shares, would be utilised to
finance the proposed production capacity expansion in the powder coating facility of Alumex,
subsequent to meeting the IPO expenses in relation to the New Shares amounting to
approximately Rupees Ten Million (Rs. 10,000,000/-) (refer Section 5.8).


The total cost of the powder coatng plant together with the die manufacturing equipment is
approximately Rs. 240 million and comprise of the following,
Table 5-4: Cost Break Down of Powder Coatng Facility
Item Descripton
Approximate
Cost
(Rs. million)
Powder Coatng Plant
- Italtechno Powder Coatng Plant
- Building
- Freight/Insurance, Taxes
- Power Supply/Air Dryer/Waste Water System/ Installaton/Other
100
32
35
23
190
Die Manufacturing Process
- Die Polishing Plant
- Wire Cuter
22
18
40
General Power Supply
- 1000 KVA Generator 10
10

Total 240
Alumex has successfully evaluated the quotatons from the suppliers for the powder coatng
plant and has subsequently placed the purchase order with Italtecno, Italy. Alumex expects the
machine to be delivered during the Quarter 4 of the Financial Year (FY) 2013/14. With regard to
the purchase of the equipment for the die manufacturing process mentoned above, quotatons
have been obtained from suppliers, and Alumex has already placed the purchase order with
Micro Technica Technologies with the expected delivery during the Quarter 4 of the FY 2013/14.
Additonally, with respect to the building, it is stll at the inital stage of nalising the design and is
expected to commence constructon work by March 2014.
Other equipments such as Air Dryer, Waste Water System, Wire Cuter etc. would be procured at
the appropriate tme subsequent to a proper evaluaton by the management and the technical
sta.
The funds raised through the New Shares would be utlised in full and the new powder coatng
facility would be in operaton during FY 2014/15. The Company will not receive any proceeds
raised via the Oer for Sale tranche of the Oering detailed in Secton 5.1 above. All proceeds
from the sale of Vendor Shares would be for the account of the Selling Shareholders.
Cost overruns in implementng the project (if any) will be nanced by Alumex using bank
borrowings and internally generated funds.
Subsequent to the completon of the new powder coatng plant, it is expected that the
Companys revenue from the powder coatng segment would increase gradually over the years
and thereby have a positve impact on the protability of the Company. The volumes and the
revenue recorded through the existng powder coatng plant, which has a similar capacity to the
new plant, are presented in Secton 11.2.1 and Secton 11.3.1 of this Prospectus.


The total cost of the powder coatng plant together with the die manufacturing equipment is
approximately Rs. 240 million and comprise of the following,
Table 5-4: Cost Break Down of Powder Coatng Facility
Item Descripton
Approximate
Cost
(Rs. million)
Powder Coatng Plant
- Italtechno Powder Coatng Plant
- Building
- Freight/Insurance, Taxes
- Power Supply/Air Dryer/Waste Water System/ Installaton/Other
100
32
35
23
190
Die Manufacturing Process
- Die Polishing Plant
- Wire Cuter
22
18
40
General Power Supply
- 1000 KVA Generator 10
10

Total 240
Alumex has successfully evaluated the quotatons from the suppliers for the powder coatng
plant and has subsequently placed the purchase order with Italtecno, Italy. Alumex expects the
machine to be delivered during the Quarter 4 of the Financial Year (FY) 2013/14. With regard to
the purchase of the equipment for the die manufacturing process mentoned above, quotatons
have been obtained from suppliers, and Alumex has already placed the purchase order with
Micro Technica Technologies with the expected delivery during the Quarter 4 of the FY 2013/14.
Additonally, with respect to the building, it is stll at the inital stage of nalising the design and is
expected to commence constructon work by March 2014.
Other equipments such as Air Dryer, Waste Water System, Wire Cuter etc. would be procured at
the appropriate tme subsequent to a proper evaluaton by the management and the technical
sta.
The funds raised through the New Shares would be utlised in full and the new powder coatng
facility would be in operaton during FY 2014/15. The Company will not receive any proceeds
raised via the Oer for Sale tranche of the Oering detailed in Secton 5.1 above. All proceeds
from the sale of Vendor Shares would be for the account of the Selling Shareholders.
Cost overruns in implementng the project (if any) will be nanced by Alumex using bank
borrowings and internally generated funds.
Subsequent to the completon of the new powder coatng plant, it is expected that the
Companys revenue from the powder coatng segment would increase gradually over the years
and thereby have a positve impact on the protability of the Company. The volumes and the
revenue recorded through the existng powder coatng plant, which has a similar capacity to the
new plant, are presented in Secton 11.2.1 and Secton 11.3.1 of this Prospectus.


(ii) In order to be eligible for the reduced rate of corporate tax for the period commencing from
the year of assessment 2013/2014 to 2015/2016 in terms of Section 59D(1) of the Inland
Revenue Act No. 10 of 2006 as amended by Act No. 18 of 2013 (Inland Revenue Act).
Section 59D(1) reads as follows;
59D (1)the tax rate applicable on the profits and income within the meaning of paragraph
(a) of section 3 (other than any profits and income from the sale of any capital assets), of
any company which lists its shares on or after April 1, 2013 but prior to April 1, 2014, in the
Colombo Stock Exchange licensed by the Securities and Exchange Commission of Sri Lanka
and issues by way of Initial Public Offering not less than twenty per centum of its shares to
the general public, shall be reduced by fifty per centum for the year of assessment in which
such shares are listed and for another two years of assessment immediately succeeding that
year of assessment subject where such company after listing continues to maintain not less
than twenty per centum of holding of its shares by the general public.
(iii) A listing of the Shares on the CSE shall provide the Company access to the capital market of
Sri Lanka thereby enabling the Company to raise equity funds for future expansions and
growth.
(iv) The listing through the IPO would facilitate Alumex to broad-base the ownership of the
Company as per the Public Holding Rule of the CSE, which would strengthen its identity
through increased visibility and brand image amongst the public.
5.7 Listing
The Offering herein contemplated comprises of Fifty Nine Million Eight Hundred and Sixty Thousand
Six Hundred (59,860,600) Ordinary Shares. If fully subscribed, the Offered Shares will amount to 20%
of the Issued and Paid up Ordinary Shares subsequent to the Offering.
An application has been made to the CSE for permission for a listing of Two Hundred and Ninety Nine
Million Three Hundred and Two Thousand Eight Hundred and Forty (299,302,840) Ordinary Voting
Shares, being the entirety of the Issued and Paid up Ordinary Shares represented in the Stated
Capital subsequent to the IPO.
It is expected that the Company will meet the minimum Stated Capital requirement [CSE Listing Rule
2.1.3(a)] and the minimum Public Holding requirement [CSE Listing Rule 2.1.3(c)] of the CSE on the
completion of the Offering pursuant to which the listing of the entire Ordinary Voting Shares will take
place on the Diri Savi Board of the CSE. The minimum Stated Capital requirement of the CSE
stipulates that the stated capital of the entity for which a listing is sought on the Diri Savi Board of the
CSE, should not be less than Rupees One Hundred Million (Rs. 100,000,000/-) at the time of listing
whilst the minimum Public Holding requirement stipulates that, 10% of the total number of shares
for which a listing is sought should be in the hands of a minimum number of 200 Public shareholders.
If in the event the Company being not able to comply with Rule 2.1.3(a) and Rule 2.1.3(c) of the CSE
Listing Rules, the Company will return all Application monies received by it.
Alumex has positive net assets as per the consolidated audited financial statements for the year
immediately preceding the date of application and an operating history of more than one (01) year,
thus has complied with Rule 2.1.3(b) and Rule 2.1.3(d) of the CSE Listing Rules respectively.


What constitutes Public Holding is ascertained in terms of the Directive issued by the Securities and
Exchange Commission of Sri Lanka, under Section 13(c) and 13(cc) of the Securities and Exchange
Commission Act No. 36 of 1987 (as amended) issued on December 20, 2013
(Ref: SEC/LEG/13/12/37), Public Holding definition is set out in Annex A of this Prospectus.
5.8 Cost of the Offering
The total costs associated with the Offering are estimated to be approximately Rs. 33 million. These
include all direct costs and expenses associated with the Offering, inclusive of but not limited to the
initial listing fees to the CSE, management/advisory fees to the Financial Advisors and Managers to
the Offering, fees for the registrar function, advisory fees, certain legal, consultancy and accountancy
fees, advertising and promotional costs, printing costs, brokerage commissions and stamp duty. Such
costs will be recovered from the proceeds of the Offering and internally generated cash of
Rs. 10 million and Rs. 23 million respectively.
5.9 Brokerage
Brokerage at the rate of zero decimal six per centum (0.6%) of the value of the Offered Shares will be
paid in respect of the number of Shares allotted/transferred on Applications bearing the original seal
of any bank operating in Sri Lanka or a member/trading member of the CSE or Financial Advisors and
Managers to the Offer or any other intermediary appointed by the Company and/or Financial
Advisors and Managers to the Offering involved in the marketing of the Offering.
5.10 Minimum Subscription and Underwriting
The total amount of funding required by the Company (to be raised on the Offer for Subscription
tranche) to meet the cost of the powder coating facility and to meet part of the cost of the Issue, is
Rupees Two Hundred and Fifty Million (Rs. 250,000,000/-), (cost of the powder coating facility being
Rs. 240,000,000/- and to meet part of the cost of the Issue of Rs. 10,000,000/-, the balance sum of
Rs. 23,000,000/- being funded by the Company out of its internally generated funds as set out in
Section 5.8 of the Prospectus). Any amount undersubscribed of the said Rs. 250,000,000/- except the
Rs. 66,265,400/- referred to in the paragraph below, would be funded by the Company out of its
internally generated funds and out of debt capital to be secured.
Subject to CSE Listing Rule 2.1.3 being complied with, in the event of an undersubscription, the
subscribers will be allocated the Shares they have applied for and the funds raised thereby will be
utilised in the first instance to fulfil the Offer for Subscription tranche, of the Offering detailed in
Section 5.1 above. In terms of CSE Listing Rule 2.1.3 (a), the Company is required to raise a minimum
sum of Rs. 66,265,400/- on the Offer for Subscription tranche in order to increase its Stated Capital to
Rs. 100,000,000/- in order to qualify for a listing.
As set out in Section 5.7 of this Prospectus, if in the event the Company being not able to comply
with Rule 2.1.3(a) and Rule 2.1.3(c) of the CSE Listing Rules (having already complied with Rule
2.1.3(b) and 2.1.3(d)), the Company will return all Application monies received by it.
The Company shall seek a listing even if the Offering is not fully subscribed [subject to the Company
satisfying the requirements of the CSE Listing Rule 2.1.3(a) and 2.1.3(c)].
Accordingly, the Company has not entered into any underwriting arrangement with regards to this
Offering.


What constitutes Public Holding is ascertained in terms of the Directive issued by the Securities and
Exchange Commission of Sri Lanka, under Section 13(c) and 13(cc) of the Securities and Exchange
Commission Act No. 36 of 1987 (as amended) issued on December 20, 2013
(Ref: SEC/LEG/13/12/37), Public Holding definition is set out in Annex A of this Prospectus.
5.8 Cost of the Offering
The total costs associated with the Offering are estimated to be approximately Rs. 33 million. These
include all direct costs and expenses associated with the Offering, inclusive of but not limited to the
initial listing fees to the CSE, management/advisory fees to the Financial Advisors and Managers to
the Offering, fees for the registrar function, advisory fees, certain legal, consultancy and accountancy
fees, advertising and promotional costs, printing costs, brokerage commissions and stamp duty. Such
costs will be recovered from the proceeds of the Offering and internally generated cash of
Rs. 10 million and Rs. 23 million respectively.
5.9 Brokerage
Brokerage at the rate of zero decimal six per centum (0.6%) of the value of the Offered Shares will be
paid in respect of the number of Shares allotted/transferred on Applications bearing the original seal
of any bank operating in Sri Lanka or a member/trading member of the CSE or Financial Advisors and
Managers to the Offer or any other intermediary appointed by the Company and/or Financial
Advisors and Managers to the Offering involved in the marketing of the Offering.
5.10 Minimum Subscription and Underwriting
The total amount of funding required by the Company (to be raised on the Offer for Subscription
tranche) to meet the cost of the powder coating facility and to meet part of the cost of the Issue, is
Rupees Two Hundred and Fifty Million (Rs. 250,000,000/-), (cost of the powder coating facility being
Rs. 240,000,000/- and to meet part of the cost of the Issue of Rs. 10,000,000/-, the balance sum of
Rs. 23,000,000/- being funded by the Company out of its internally generated funds as set out in
Section 5.8 of the Prospectus). Any amount undersubscribed of the said Rs. 250,000,000/- except the
Rs. 66,265,400/- referred to in the paragraph below, would be funded by the Company out of its
internally generated funds and out of debt capital to be secured.
Subject to CSE Listing Rule 2.1.3 being complied with, in the event of an undersubscription, the
subscribers will be allocated the Shares they have applied for and the funds raised thereby will be
utilised in the first instance to fulfil the Offer for Subscription tranche, of the Offering detailed in
Section 5.1 above. In terms of CSE Listing Rule 2.1.3 (a), the Company is required to raise a minimum
sum of Rs. 66,265,400/- on the Offer for Subscription tranche in order to increase its Stated Capital to
Rs. 100,000,000/- in order to qualify for a listing.
As set out in Section 5.7 of this Prospectus, if in the event the Company being not able to comply
with Rule 2.1.3(a) and Rule 2.1.3(c) of the CSE Listing Rules (having already complied with Rule
2.1.3(b) and 2.1.3(d)), the Company will return all Application monies received by it.
The Company shall seek a listing even if the Offering is not fully subscribed [subject to the Company
satisfying the requirements of the CSE Listing Rule 2.1.3(a) and 2.1.3(c)].
Accordingly, the Company has not entered into any underwriting arrangement with regards to this
Offering.


5.11 Opening of Subscription List and Closure Date
The subscription list for the Offered Shares will open at 9.00 a.m. on March 06, 2014 and shall,
subject to the occurrence of the events in the following paragraph, remain open for fourteen (14)
Market Days (including the date of opening) until closure at 4.30 p.m. on March 25, 2014.
In the event of an oversubscription of the Offering prior to March 25, 2014, the Company shall inform
the CSE in writing immediately of such fact and the subscription list will be closed at 4.30 p.m. on the
same day on which it is fully subscribed. Also, the Board reserves the discretion to close the
subscription list on any Market Day within the period of fourteen (14) Market Days irrespective of
whether the Offering is oversubscribed or not, by providing one (01) Market Days prior notice to the
CSE.
5.12 Inspection of Documents
Articles of Association, Auditors Reports and Audited Financial Statements for the five (05) financial
years ended March 31, 2013 (i.e. the five (05) financial years immediately preceding the date of this
Prospectus) and Interim Financial Statements for the nine (09) month period ended December 31,
2013 and all other documents, including material contracts and management agreements entered
into by the Company would be made available for inspection by the Public during normal working
hours at Hayleys Group Services (Private) Limited, No. 400, Deans Road, Colombo 10, for a period not
less than fourteen (14) Market Days as per Rule 3.1.19(a) of the CSE Listing Rules.
The Prospectus, Application Form and Articles of Association of the Company will be available on the
website of the CSE, www.cse.lk, the website of the Company, www.alumexgroup.com and the
website of the Financial Advisors and Managers to the Offering, www.ndbib.com for a period not
less than fourteen (14) Market Days as stipulated in Rule 3.1.19(b) of the CSE Listing Rules.
5.13 Eligible Applicants
In order to achieve the objective referred in Section 5.6 (ii), Applications from investors qualifying
as Public (as defined in Annex A) will be given priority in accepting and allocation of the Offered
Shares.
Applications are invited from the following categories of investors having a valid CDS Account:
Citizens of Sri Lanka who are resident in or outside Sri Lanka and above 18 years of age; or
Companies, corporations or institutions incorporated or established within Sri Lanka; or
Corporate bodies incorporated or established outside Sri Lanka; or
Approved unit trusts licensed by the SEC; or
Approved provident funds and contributory pension schemes registered/incorporated/
established in Sri Lanka (in this case, Applications should be in the name of the trustee/board of
management in order to facilitate the opening of the CDS account); or
Foreign citizens above 18 years of age (irrespective of whether they are resident in Sri Lanka or
overseas); or
Regional and country funds approved by the SEC.
Applications made by individuals under 18 years of age or those in the names of sole
proprietorships, partnerships, unincorporated trusts and non-corporate bodies will be rejected.


Applications submitted under the Unit Trust Investor Category should conform to the criteria
defined by the SEC Directive dated June 6, 2011 (Ref: SEC/LEG/11/06/01).
Eligible Applicants may fall into one of the following categories.
Retail Individual Investor Category
Unit Trust Investor Category
Non-Retail Investor Category
Please refer Section 4.0 Glossary of Terms Related to the Offering for definitions of the
aforementioned categories.
5.14 Procedure for Application
Applicants applying for the Offered Shares should submit their Applications in the manner as set out
in this Prospectus.
The Prospectus will be made available free of charge from the collection points listed in Annex B. The
Prospectus can also be downloaded from www.cse.lk, www.alumexgroup.com and
www.ndbib.com.
5.14.1 How to Apply
APPLICANTS SHOULD APPLY ONLY THROUGH ONE INVESTOR CATEGORY (INCLUDING JOINT
APPLICANTS) AND WOULD BE PERMITTED TO SUBMIT ONLY ONE APPLICATION FORM. TWO OR
MORE APPLICATIONS SUBMITTED BY THE SAME APPLICANT EITHER UNDER THE SAME CATEGORY
OR DIFFERENT CATEGORIES WILL BE CONSTRUED AS MULTIPLE APPLICATIONS AND WILL BE
REJECTED.
Applicants falling under Retail Individual and Non-Retail Investor Categories should apply for the
Offered Shares on the Application Form printed for this purpose, which constitutes part of this
Prospectus. Such Application Forms will be made available from the collection points listed in Annex
B and can also be downloaded from www.cse.lk, www.alumexgroup.com and www.ndbib.com.
Applicants applying under the Unit Trust Investor Category must apply for Offered Shares using the
separate YELLOW coloured Application Form printed for this purpose, which constitutes part of this
Prospectus. Such Application Forms will be made available through the registered office of the
Company, Alumex Limited, Sapugaskanda, Makola, Registrars to the Offering, P W Corporate
Secretarial (Private) Limited, 3/17, Kynsey Road, Colombo 08, and Financial Advisors and Managers to
the Offering, NDB Investment Bank Limited, No. 40, Navam Mawatha, Colombo 02. Exact size copies
of the Application Form printed on YELLOW coloured paper as specified herein will also be
permissible under the Unit Trust Investor Category.
Applications submitted under the Unit Trust Investor Category should accompany a confirmation
by the trustee confirming that such unit trust is in conformity with the criteria defined by the SEC
Directive dated June 6, 2011 (Ref: SEC/LEG/11/06/01) and CSE Listing Rule 3.1.5(b)(iii).
Applicants applying under Retail Individual, Non-Retail and Unit Trust Investor Categories should
submit their Application Forms to the Registrars to the Offering in terms of Section 5.14.8.
An Applicant of a joint Application, applying through another Application Form is deemed to have
made multiple Applications and will be rejected.

All resident Applicants should indicate in the Application for Shares, their NIC number or the company registration
number as the case may be. The passport number may be indicated only if the Applicant does not have a
NIC number.
As per the Directive of the Securities and Exchange Commission made under Circular No. 08/2010 dated
November 22, 2010 and Circular No. 13/2010 issued by the Central Depository System (Private) Limited dated
November 30, 2010, all Shares allotted must be directly uploaded to the CDS accounts. Existing Shares transferred
to Applicants allocated on the Offer for Sale tranche would similarly be directly uploaded to the CDS account of the
Applicant. As such, all Applicants should indicate their CDS account number in the Application Form. Applicants who
do not have a CDS account are advised to open a valid CDS account prior to submitting the Application, in order to
facilitate the uploading of allotted/transferred Shares to their CDS account.
Please note that upon the allotment/transfer of Shares under this Offering, the allotted/transferred Shares would be
credited to the Applicants CDS account so indicated. Please note that a SHARE CERTIFICATE SHALL NOT BE ISSUED.
Any Application which does not carry a valid CDS account number or indicates a number of a CDS account which is
not opened at the time of the closure of the subscription list or which indicates an inaccurate/incorrect CDS account
number, shall be rejected and no allotment/transfer of Shares will be made.
You can open a CDS account through any member/trading member of the CSE as set out in Annex B or through any
custodian banks as set out in Annex C of this Prospectus.

An Applicant who has made an Application under a margin trading account should not apply
individually or jointly on a separate Application Form. Such Applications will also be construed as
multiple Applications and will be rejected.
Subject to the above, the Company reserves the right to reject multiple Applications and suspected
multiple Applications which are not allowed.
Please note that Applicant information such as full name, address, NIC number/passport number
and residency will be downloaded from the database of CDS, based on the CDS account number
indicated in the Application Form. Such information shall take precedence over information
provided in the Application Form.
Application Forms stating third party CDS accounts instead of their own CDS account numbers,
except in the case of margin trading accounts, will be rejected.
Care must be taken to follow the instructions on the reverse of the Application Form. Applications
that do not strictly conform to such instructions and additional conditions set out hereunder or
which are illegible may be rejected.

PLEASE NOTE THAT ALLOTMENT/TRANSFER OF SHARES WILL ONLY BE MADE IF YOU HAVE A VALID
CDS ACCOUNT AT THE TIME OF SUBMISSION OF APPLICATION.
Applicants have the option of having their Shares locked in the CDS as described below. Shares
that are locked will not be available for trading purposes and will not be visible to the participant.
Such Applicants would have to fill in the relevant section provided in the Application Form for this
purpose. If the Applicant has not specified that the Shares need to be deposited to the locked
balance in the CDS account, the said Shares would be deposited to Applicants trading balance in
the CDS account.
Operation of a locked balance in the CDS
In order to preserve the confidentiality of shareholder information and to ensure that securities are
not made available for trading for those shareholders who do not want to trade the securities, the
CDS provides a mechanism where securities can be locked in the CDS account.

The CDS maintains two balances for each CDS account, namely a trading balance and a locked
balance. The trading balance would be visible to the CDS participant and all dealings and trading
would be permitted on the said trading balance, as done normally.
As opposed to the trading balance, the locked balance will not be visible to the CDS participant and
all dealings on such locked balance would be suspended thereby maintaining the confidentiality of
the information and also safeguarding the account holder from any unauthorised sale by a broker.
At the option and request of an account holder, the CDS would transfer a named quantity of
securities from the locked balance to the trading balance of a CDS account and/or from the trading
balance to the locked balance.
5.14.2 Number of Shares Applied
Applications should be for a minimum of one hundred (100) Shares [for a value of Rupees one
thousand four hundred (Rs.1,400/-)] and in multiples of hundred (100) Shares thereof.
Applications for less than one hundred (100) Shares or for a number which is not in multiples of
hundred (100) Shares will be rejected and the accompanying cheques, bank drafts or bank
guarantees will not be sent for clearing but be returned via ordinary post at the risk of the Applicant,
or in the case of joint Applicants, the first named Applicant. The cheque or bank draft or bank
guarantee or RTGS transfer should be issued to the exact value of the number of Shares applied for
multiplied by the Share Price. Cheques, bank drafts, bank guarantees or RTGS transfers not
conforming to the above requirement will be rejected at the outset.
Please refer Section 5.15.1 for details with respect to the mode of remittance.
5.14.3 Identification Information
All Applicants should provide in the Application, their CDS account number in the appropriate cage
provided.
Applicants are requested to state their residency and nationality in the appropriate spaces
The NIC, passport, or company registration number as the case may be, must be stated in the
Application Form and any Application Form which does not provide the appropriate identification
information will be rejected.
Resident Applicants may use the Passport for purposes of identification only if they do not have a
NIC number.


NIC number.
November 30, 2010, all Shares allotted must be directly uploaded to the CDS accounts. Existing Shares transferred
to Applicants allocated on the Offer for Sale tranche would similarly be directly uploaded to the CDS account of the
Applicant. As such, all Applicants should indicate their CDS account number in the Application Form. Applicants who
do not have a CDS account are advised to open a valid CDS account prior to submitting the Application, in order to
facilitate the uploading of allotted/transferred Shares to their CDS account.

An Applicant who has made an Application under a margin trading account should not apply
individually or jointly on a separate Application Form. Such Applications will also be construed as
multiple Applications and will be rejected.
Subject to the above, the Company reserves the right to reject multiple Applications and suspected
multiple Applications which are not allowed.
Please note that Applicant information such as full name, address, NIC number/passport number
and residency will be downloaded from the database of CDS, based on the CDS account number
indicated in the Application Form. Such information shall take precedence over information
Care must be taken to follow the instructions on the reverse of the Application Form. Applications
that do not strictly conform to such instructions and additional conditions set out hereunder or
which are illegible may be rejected.

PLEASE NOTE THAT ALLOTMENT/TRANSFER OF SHARES WILL ONLY BE MADE IF YOU HAVE A VALID
CDS ACCOUNT AT THE TIME OF SUBMISSION OF APPLICATION.
Applicants have the option of having their Shares locked in the CDS as described below. Shares
that are locked will not be available for trading purposes and will not be visible to the participant.
Such Applicants would have to fill in the relevant section provided in the Application Form for this
purpose. If the Applicant has not specified that the Shares need to be deposited to the locked
balance in the CDS account, the said Shares would be deposited to Applicants trading balance in
the CDS account.
Operation of a locked balance in the CDS
In order to preserve the confidentiality of shareholder information and to ensure that securities are
not made available for trading for those shareholders who do not want to trade the securities, the
CDS provides a mechanism where securities can be locked in the CDS account.

The CDS maintains two balances for each CDS account, namely a trading balance and a locked
balance. The trading balance would be visible to the CDS participant and all dealings and trading
would be permitted on the said trading balance, as done normally.
As opposed to the trading balance, the locked balance will not be visible to the CDS participant and
all dealings on such locked balance would be suspended thereby maintaining the confidentiality of
the information and also safeguarding the account holder from any unauthorised sale by a broker.
At the option and request of an account holder, the CDS would transfer a named quantity of
securities from the locked balance to the trading balance of a CDS account and/or from the trading
balance to the locked balance.
5.14.2 Number of Shares Applied
Applications should be for a minimum of one hundred (100) Shares [for a value of Rupees one
thousand four hundred (Rs.1,400/-)] and in multiples of hundred (100) Shares thereof.
Applications for less than one hundred (100) Shares or for a number which is not in multiples of
hundred (100) Shares will be rejected and the accompanying cheques, bank drafts or bank
guarantees will not be sent for clearing but be returned via ordinary post at the risk of the Applicant,
or in the case of joint Applicants, the first named Applicant. The cheque or bank draft or bank
guarantee or RTGS transfer should be issued to the exact value of the number of Shares applied for
multiplied by the Share Price. Cheques, bank drafts, bank guarantees or RTGS transfers not
conforming to the above requirement will be rejected at the outset.
Please refer Section 5.15.1 for details with respect to the mode of remittance.
5.14.3 Identification Information
All Applicants should provide in the Application, their CDS account number in the appropriate cage
provided.
Applicants are requested to state their residency and nationality in the appropriate spaces
The NIC, passport, or company registration number as the case may be, must be stated in the
Application Form and any Application Form which does not provide the appropriate identification
information will be rejected.
Resident Applicants may use the Passport for purposes of identification only if they do not have a
NIC number.


Tabulated below is the relevant identcaton informaton that a prospectve investor should provide
depending on the legal status:
Table 5-5: Identcaton Informaton
Citzenship/Legal Form
Identcaton Informaton
NIC
Number
Passport
Number
Company
Registraton
Number
Common
Seal or
Rubber
Stamp
Sri Lankan Citzens
Sri Lankan Citzens with no NIC Number - Note I
Foreign Citzens - Note II
Corporate Enttes - Note III
Note I: In the case of Sri Lankan citzens, the passport number will be accepted only when the
NIC number is not available. The CDS account must be for the same passport number.
Note II: Foreign citzens must state the passport number in the space provided.
Note III: The company registraton number must be provided. The common seal or rubber stamp
should be axed and the Applicaton Form duly signed as stpulated in the consttutonal
documents of such Applicants.
A valid CDS account number must be stated in the Applicaton Form, and any Applicaton Form
which does not provide the appropriate identcaton informaton will be rejected. All informaton
about the Applicant (i.e. name, address, natonality and NIC or passport number) will be
downloaded from the database of CDS, based on the number given in the Applicaton Form. In the
event of any discrepancy between the informaton in the CDS and in the Applicaton, the
informaton in the CDS shall take precedence.
If the CDS account number is not indicated in the Applicaton Form, or the number indicated in the
form is found to be inaccurate/incorrect, or the account number indicated is not opened at the
tme of closing the Oering such Applicaton will be rejected and no allotments of Shares will be
made.
5.14.4 Key Responsibility of a Non-Resident Investor
Non-resident investors may be aected by the laws of the jurisdicton of their residence. If the
non-resident investors wish to apply for the Shares, it is their responsibility to comply with the laws
relevant to the jurisdicton of their residence and of Sri Lanka.
5.14.5 Margin Trading
Applicants who wish to apply through their margin trading account, should submit the Applicaton in
the name of the margin provider/Applicants name signed by the margin provider.
The Applicants should state the relevant CDS account number relatng to the margin trading account
in the space provided for the CDS account number in the Applicaton Form. The Shares shall be
uploaded to the CDS account number of the margin trading account.
A photocopy of the margin trading agreement must be submited along with the Applicaton.

Please note that the margin provider can apply under its own name and such Applications will not be
construed as multiple Applications. Details of multiple Applications are available under
Section 5.14.1.
5.14.6 Applications Made Under Power of Attorney
In the case of Applications made under Power of Attorney (POA), a copy of the said POA, certified by
a Notary Public to be a true copy of the original, should be lodged with the Registrars to the Offering
along with the Application Form. The original POA should not be attached.
5.14.7 Joint Applications
If the ownership of Shares is desired in the name of one Applicant, full details should be given only
under the heading, SOLE/FIRST APPLICANT in the Application Form. In the case of joint Applicants,
the signatures and particulars in respect of all Applicants must be given under the relevant headings
in the Application Form.
Joint Application Forms are permitted only for natural persons not exceeding three Applicants. Joint
Applicants should note that all parties should either be residents of Sri Lanka or non-residents. An
Applicant of a joint Application shall not apply through a separate Application Form either
individually or jointly.
5.14.8 Submission of Applications
Application Forms properly and legibly filled in accordance with the instructions thereof, along with
the applicable remittance (cheque or bank draft or bank guarantee or RTGS transfer only) for the full
amount payable on Application should be enclosed in an envelope marked Alumex Limited Initial
Public Offering on the top left-hand corner and be addressed and dispatched by post or courier or
delivered by hand to the Registrars to the Offering at the following address prior to 4.30 p.m. Local
Time on the Closure Date.
P W Corporate Secretarial (Pvt) Ltd
3/17, Kynsey Road
Colombo 08.
Applications may also be handed over to the Financial Advisors and Managers to the Offering,
Bankers to the Offering and their designated branches, members and trading members of the CSE as
set out in Annex B, prior to 4.30 p.m. Local Time on the Closure Date.
In the case of Applications dispatched by courier or post, such Applications should reach the
Registrars to the Offering not later than 4.30 p.m. Local Time on the Market Day immediately
following the Closure Date. Any Applications received after the above deadline shall be rejected
even though the courier or postmark is dated prior to the Closure Date.
5.15 Payment of Application Monies
5.15.1 Mode of Remittance
Payment should be made separately in respect of each Application by way of a cheque or bank draft
or bank guarantee for the full amount payable on application. Remittances on Applications will be
deposited in a separate bank account in the name of Alumex Limited Initial Public Offering.


Tabulated below is the relevant identcaton informaton that a prospectve investor should provide
depending on the legal status:
Table 5-5: Identcaton Informaton
Citzenship/Legal Form
Identcaton Informaton
NIC
Number
Passport
Number
Company
Registraton
Number
Common
Seal or
Rubber
Stamp
Sri Lankan Citzens
Sri Lankan Citzens with no NIC Number - Note I
Foreign Citzens - Note II
Corporate Enttes - Note III
Note I: In the case of Sri Lankan citzens, the passport number will be accepted only when the
NIC number is not available. The CDS account must be for the same passport number.
Note II: Foreign citzens must state the passport number in the space provided.
Note III: The company registraton number must be provided. The common seal or rubber stamp
should be axed and the Applicaton Form duly signed as stpulated in the consttutonal
documents of such Applicants.
A valid CDS account number must be stated in the Applicaton Form, and any Applicaton Form
which does not provide the appropriate identcaton informaton will be rejected. All informaton
about the Applicant (i.e. name, address, natonality and NIC or passport number) will be
downloaded from the database of CDS, based on the number given in the Applicaton Form. In the
event of any discrepancy between the informaton in the CDS and in the Applicaton, the
informaton in the CDS shall take precedence.
If the CDS account number is not indicated in the Applicaton Form, or the number indicated in the
form is found to be inaccurate/incorrect, or the account number indicated is not opened at the
tme of closing the Oering such Applicaton will be rejected and no allotments of Shares will be
made.
5.14.4 Key Responsibility of a Non-Resident Investor
Non-resident investors may be aected by the laws of the jurisdicton of their residence. If the
non-resident investors wish to apply for the Shares, it is their responsibility to comply with the laws
relevant to the jurisdicton of their residence and of Sri Lanka.
5.14.5 Margin Trading
Applicants who wish to apply through their margin trading account, should submit the Applicaton in
the name of the margin provider/Applicants name signed by the margin provider.
The Applicants should state the relevant CDS account number relatng to the margin trading account
in the space provided for the CDS account number in the Applicaton Form. The Shares shall be
uploaded to the CDS account number of the margin trading account.
A photocopy of the margin trading agreement must be submited along with the Applicaton.

Please note that the margin provider can apply under its own name and such Applications will not be
construed as multiple Applications. Details of multiple Applications are available under
Section 5.14.1.
5.14.6 Applications Made Under Power of Attorney
In the case of Applications made under Power of Attorney (POA), a copy of the said POA, certified by
a Notary Public to be a true copy of the original, should be lodged with the Registrars to the Offering
along with the Application Form. The original POA should not be attached.
5.14.7 Joint Applications
If the ownership of Shares is desired in the name of one Applicant, full details should be given only
under the heading, SOLE/FIRST APPLICANT in the Application Form. In the case of joint Applicants,
the signatures and particulars in respect of all Applicants must be given under the relevant headings
in the Application Form.
Joint Application Forms are permitted only for natural persons not exceeding three Applicants. Joint
Applicants should note that all parties should either be residents of Sri Lanka or non-residents. An
Applicant of a joint Application shall not apply through a separate Application Form either
individually or jointly.
5.14.8 Submission of Applications
Application Forms properly and legibly filled in accordance with the instructions thereof, along with
the applicable remittance (cheque or bank draft or bank guarantee or RTGS transfer only) for the full
amount payable on Application should be enclosed in an envelope marked Alumex Limited Initial
Public Offering on the top left-hand corner and be addressed and dispatched by post or courier or
delivered by hand to the Registrars to the Offering at the following address prior to 4.30 p.m. Local
Time on the Closure Date.
P W Corporate Secretarial (Pvt) Ltd
3/17, Kynsey Road
Colombo 08.
Applications may also be handed over to the Financial Advisors and Managers to the Offering,
Bankers to the Offering and their designated branches, members and trading members of the CSE as
set out in Annex B, prior to 4.30 p.m. Local Time on the Closure Date.
In the case of Applications dispatched by courier or post, such Applications should reach the
Registrars to the Offering not later than 4.30 p.m. Local Time on the Market Day immediately
following the Closure Date. Any Applications received after the above deadline shall be rejected
even though the courier or postmark is dated prior to the Closure Date.
5.15 Payment of Application Monies
5.15.1 Mode of Remittance
Payment should be made separately in respect of each Application by way of a cheque or bank draft
or bank guarantee for the full amount payable on application. Remittances on Applications will be
deposited in a separate bank account in the name of Alumex Limited Initial Public Offering.


Payment for Applications for Shares of a value below Rs. 100,000,000/- may be supported by a
cheque or bank draft or bank guarantee. In such instances, Application Form should be accompanied
by only one cheque or bank draft or bank guarantee and should be issued for the full amount
indicated in the Application Form. Any Application for Shares of a value below Rs. 100,000,000/-
accompanied by two or more cheques or bank drafts or bank guarantees will be rejected at the
outset.
Applicants making Applications for Shares of a value above and inclusive of Rs. 100,000,000/- will
be permitted to submit multiple bank drafts (not cheques) or multiple bank guarantees or RTGS
transfers. Such Applicants are required to attach a list to the Application Form giving details of
payment, such as amount of bank draft/bank guarantee, name of bank, name of branch and bank
draft number/bank guarantee number. Applications for Shares of a value above and inclusive of
Rs. 100,000,000/- accompanying multiple bank drafts (not cheques) or multiple bank guarantees
will not be rejected.
Cash will not be accepted. Anyone wishing to pay cash should obtain a bank draft from any Licensed
Commercial Bank (LCB) in Sri Lanka.
5.15.2 Cheques or Bank Drafts - Resident Sri Lankan Investors
Cheques or bank drafts should be drawn on any LCB in Sri Lanka and crossed Account Payee Only
and made payable to Alumex Limited Initial Public Offering.
Cheques or bank drafts accompanying Application Forms made for less than one hundred (100)
Shares, i.e. Rupees One Thousand Four Hundred (Rs. 1,400/-) or for a number which is not in
multiples of hundred (100) Shares (as mentioned in Section 5.14.2) will not be sent for clearing and
shall be returned via ordinary post at the risk of the Applicant, or in the case of joint Applicants, to
the first named Applicant.
In the event that cheques are not realised within two (02) Market Days from the day of presenting
the same to the bank for clearing, the Directors reserve the right to reject the Applications and return
the Application monies. No allocation of Shares will be made to such Applicants.
Applicants residing in outstation areas from which cheque clearance may take over two (02)
Market Days are advised to make payment via bank drafts to avoid any delays.
Cheques must be honoured on first presentation to the bank for the Application to be valid.
Applications supported by cheques which are not honoured on first presentation will be rejected.
5.15.3 Bank Guarantees Resident Sri Lankan Investors
Applications made by resident Sri Lankan investors backed by bank guarantees presented in line with
the requirements set out in Section 5.15.1 will be accepted. Bank guarantees will be presented to the
respective banks only after the Offered Shares have been allotted/transferred. Bank guarantees
should be issued by any LCB in Sri Lanka and in favour of Alumex Limited Initial Public Offering in
a manner acceptable to the Company and be payable on demand.
Bank guarantees should be valid for a minimum of one (01) month from the date of opening of the
Offering (i.e. March 06, 2014).
Investors are encouraged to discuss with their relevant bankers with regard to the issuance of bank
guarantees and all related charges that would be incurred by the investors.
Foreign Investors and non-resident Sri Lankan investors should refer Section 5.15.5.

5.15.4 RTGS Transfers - Resident Sri Lankan Investors
In case of RTGS transfers, such transfers should be made to the credit of Alumex Limited Initial
Public Offering bearing the account number 0001 1008 6210 at Sampath Bank PLC with value on
the Opening Date of Offering (i.e. the funds to be made available to the above account on the
Opening Date of Offering).
The Applicant should obtain a confirmation from the Applicants bank, to the effect that
arrangements have been made to transfer payment for the full amount payable on application to the
credit of Alumex Limited Initial Public Offering bearing the account number 0001 1008 6210 at
Sampath Bank PLC with value on the opening date of Offering (i.e. the funds to be made available to
the above account on the opening date of Offering) and should be attached with the Application
Form.
5.15.5 Foreign Currency Remittance
This section is applicable to:
Citizens of Sri Lanka who are above 18 years of age and resident overseas;
Corporate bodies incorporated or established outside Sri Lanka;
Regional or country funds approved by the SEC;
Foreign citizens (irrespective of whether they are resident in Sri Lanka or overseas) who are
above 18 years of age.
The abovementioned Applicants should make their payments using one of the following methods as
the case may be.
(a) A Foreign Investor may invest through a SIA maintained with any LCB in Sri Lanka. The procedure
for arranging payments through a SIA is presented below:
- A Foreign Investor may use the services of a custodian bank as an intermediary when
investing in the Sri Lankan securities market;
- The intermediary may open a SIA, on investors behalf;
- In conjunction with the SIA, an account with the CDS must be opened in case the investor
does not already possess a valid CDS account;
- In respect of regional or country funds investing for the first time in Sri Lanka, the
intermediary will facilitate the approval process regulated by the SEC;
- Payment for Offered Shares should be made through a bank draft or bank guarantee or RTGS
transfer issued by a LCB against the funds arranged through the SIA and made payable to
Alumex Limited Initial Public Offering.
(b) A Foreign Investor may invest through inward remittances of foreign currency held in a FCBU
account of the Applicant maintained with any LCB in Sri Lanka:
- The Applicant should forward the Application Form supported by an unconditional bank
guarantee drawn on the Applicants FCBU account pending allotment/transfer of Offered
Shares, with confirmation from the LCB that upon notification of the allotment/transfer of
shares, the allotment/transfer value would be remitted through the Applicants SIA;


Payment for Applications for Shares of a value below Rs. 100,000,000/- may be supported by a
cheque or bank draft or bank guarantee. In such instances, Application Form should be accompanied
by only one cheque or bank draft or bank guarantee and should be issued for the full amount
indicated in the Application Form. Any Application for Shares of a value below Rs. 100,000,000/-
accompanied by two or more cheques or bank drafts or bank guarantees will be rejected at the
outset.
Applicants making Applications for Shares of a value above and inclusive of Rs. 100,000,000/- will
be permitted to submit multiple bank drafts (not cheques) or multiple bank guarantees or RTGS
transfers. Such Applicants are required to attach a list to the Application Form giving details of
payment, such as amount of bank draft/bank guarantee, name of bank, name of branch and bank
draft number/bank guarantee number. Applications for Shares of a value above and inclusive of
Rs. 100,000,000/- accompanying multiple bank drafts (not cheques) or multiple bank guarantees
will not be rejected.
Cash will not be accepted. Anyone wishing to pay cash should obtain a bank draft from any Licensed
Commercial Bank (LCB) in Sri Lanka.
5.15.2 Cheques or Bank Drafts - Resident Sri Lankan Investors
Cheques or bank drafts should be drawn on any LCB in Sri Lanka and crossed Account Payee Only
and made payable to Alumex Limited Initial Public Offering.
Cheques or bank drafts accompanying Application Forms made for less than one hundred (100)
Shares, i.e. Rupees One Thousand Four Hundred (Rs. 1,400/-) or for a number which is not in
multiples of hundred (100) Shares (as mentioned in Section 5.14.2) will not be sent for clearing and
shall be returned via ordinary post at the risk of the Applicant, or in the case of joint Applicants, to
the first named Applicant.
In the event that cheques are not realised within two (02) Market Days from the day of presenting
the same to the bank for clearing, the Directors reserve the right to reject the Applications and return
the Application monies. No allocation of Shares will be made to such Applicants.
Applicants residing in outstation areas from which cheque clearance may take over two (02)
Market Days are advised to make payment via bank drafts to avoid any delays.
Cheques must be honoured on first presentation to the bank for the Application to be valid.
Applications supported by cheques which are not honoured on first presentation will be rejected.
5.15.3 Bank Guarantees Resident Sri Lankan Investors
Applications made by resident Sri Lankan investors backed by bank guarantees presented in line with
the requirements set out in Section 5.15.1 will be accepted. Bank guarantees will be presented to the
respective banks only after the Offered Shares have been allotted/transferred. Bank guarantees
should be issued by any LCB in Sri Lanka and in favour of Alumex Limited Initial Public Offering in
a manner acceptable to the Company and be payable on demand.
Bank guarantees should be valid for a minimum of one (01) month from the date of opening of the
Offering (i.e. March 06, 2014).
Investors are encouraged to discuss with their relevant bankers with regard to the issuance of bank
guarantees and all related charges that would be incurred by the investors.
Foreign Investors and non-resident Sri Lankan investors should refer Section 5.15.5.

5.15.4 RTGS Transfers - Resident Sri Lankan Investors
In case of RTGS transfers, such transfers should be made to the credit of Alumex Limited Initial
Public Offering bearing the account number 0001 1008 6210 at Sampath Bank PLC with value on
the Opening Date of Offering (i.e. the funds to be made available to the above account on the
Opening Date of Offering).
The Applicant should obtain a confirmation from the Applicants bank, to the effect that
arrangements have been made to transfer payment for the full amount payable on application to the
credit of Alumex Limited Initial Public Offering bearing the account number 0001 1008 6210 at
Sampath Bank PLC with value on the opening date of Offering (i.e. the funds to be made available to
the above account on the opening date of Offering) and should be attached with the Application
Form.
5.15.5 Foreign Currency Remittance
This section is applicable to:
Citizens of Sri Lanka who are above 18 years of age and resident overseas;
Corporate bodies incorporated or established outside Sri Lanka;
Regional or country funds approved by the SEC;
Foreign citizens (irrespective of whether they are resident in Sri Lanka or overseas) who are
above 18 years of age.
The abovementioned Applicants should make their payments using one of the following methods as
the case may be.
(a) A Foreign Investor may invest through a SIA maintained with any LCB in Sri Lanka. The procedure
for arranging payments through a SIA is presented below:
- A Foreign Investor may use the services of a custodian bank as an intermediary when
investing in the Sri Lankan securities market;
- The intermediary may open a SIA, on investors behalf;
- In conjunction with the SIA, an account with the CDS must be opened in case the investor
does not already possess a valid CDS account;
- In respect of regional or country funds investing for the first time in Sri Lanka, the
intermediary will facilitate the approval process regulated by the SEC;
- Payment for Offered Shares should be made through a bank draft or bank guarantee or RTGS
transfer issued by a LCB against the funds arranged through the SIA and made payable to
Alumex Limited Initial Public Offering.
(b) A Foreign Investor may invest through inward remittances of foreign currency held in a FCBU
account of the Applicant maintained with any LCB in Sri Lanka:
- The Applicant should forward the Application Form supported by an unconditional bank
guarantee drawn on the Applicants FCBU account pending allotment/transfer of Offered
Shares, with confirmation from the LCB that upon notification of the allotment/transfer of
shares, the allotment/transfer value would be remitted through the Applicants SIA;


- Upon allotment/transfer of Offered Shares, foreign currency to the extent of the Sri Lanka
Rupee equivalent value of Offered Shares allotted/transferred would be called on the bank
guarantee drawn on the Applicants FCBU account. The requisite funds would then be
credited to a SIA opened in favour of the Applicant via the aforementioned FCBU account;
- This procedure would protect a prospective investor from any losses accruing due to
fluctuating exchange rates.
(c) In addition to the payments made through FCBU and SIA mentioned above, a foreign citizen
resident in Sri Lanka under the Resident Guest Scheme may invest through the
RGFCA/RGRCA-Investors maintained with any LCB in Sri Lanka. An investor who wishes to avail
him/herself of this facility should make the payment for Offered Shares through a bank draft or
an unconditional bank guarantee or RTGS transfer in Sri Lanka Rupees or by converting foreign
currency funds available in the RGFCA/RGRCA-Investors as the case may be (based on the
guidelines provided by the Exchange Control Department of CBSL) and made payable to Alumex
Limited Initial Public Offering.
The endorsement must be clearly indicated on the cheque or bank draft or the bank guarantee or
the RTGS transfer confirmation to the effect that, arrangements have been made to facilitate such
payment to be made against funds available in the individuals SIA/FCBU/RGFCA/RGRCA-Investors
account. Alternatively, a document detailing the endorsement could be submitted along with the
payment and Application.
Applications supported by foreign currency remittances should be made in conformity with
requisite declarations accompanied by the documentation stipulated by the Controller of
Exchange.
5.15.6 Restrictions Applicable to Foreign Citizens Resident in Sri Lanka
Foreign citizens resident in Sri Lanka may make payments through Sri Lanka Rupee Accounts only if
they possess dual citizenship where one such citizenship is Sri Lankan. Foreign citizens having
Sri Lankan citizenship should attach a certified copy of the citizenship certificate with the
Application Form.
Foreign citizens residing in Sri Lanka having valid residency visas should note that they cannot make
remittances via cheques or bank drafts or bank guarantees or RTGS transfers drawn on Sri Lanka
Rupee accounts maintained with any LCBs in Sri Lanka but may do so via
SIA/FCBU/RGFCA/RGRCA-Investors account as detailed in Section 5.15.5 above. Applications made
by foreign citizens not in accordance to the foregoing shall be rejected.
5.16 Rejection of Applications
Application Forms which are incomplete in any way and/or are not in accordance with the terms
and conditions set out in Section 5.0 of this Prospectus will be rejected at the absolute discretion
of the Company.
Any Application which does not carry a CDS account number, or indicates a number of a CDS
account which is not opened at the time of the closure of the subscription list or which indicates
an inaccurate or incorrect CDS account number, shall be rejected and no allotment/transfer of
Shares will be made.


- Upon allotment/transfer of Offered Shares, foreign currency to the extent of the Sri Lanka
Rupee equivalent value of Offered Shares allotted/transferred would be called on the bank
guarantee drawn on the Applicants FCBU account. The requisite funds would then be
credited to a SIA opened in favour of the Applicant via the aforementioned FCBU account;
- This procedure would protect a prospective investor from any losses accruing due to
fluctuating exchange rates.
(c) In addition to the payments made through FCBU and SIA mentioned above, a foreign citizen
resident in Sri Lanka under the Resident Guest Scheme may invest through the
RGFCA/RGRCA-Investors maintained with any LCB in Sri Lanka. An investor who wishes to avail
him/herself of this facility should make the payment for Offered Shares through a bank draft or
an unconditional bank guarantee or RTGS transfer in Sri Lanka Rupees or by converting foreign
currency funds available in the RGFCA/RGRCA-Investors as the case may be (based on the
guidelines provided by the Exchange Control Department of CBSL) and made payable to Alumex
Limited Initial Public Offering.
The endorsement must be clearly indicated on the cheque or bank draft or the bank guarantee or
the RTGS transfer confirmation to the effect that, arrangements have been made to facilitate such
payment to be made against funds available in the individuals SIA/FCBU/RGFCA/RGRCA-Investors
account. Alternatively, a document detailing the endorsement could be submitted along with the
payment and Application.
Applications supported by foreign currency remittances should be made in conformity with
requisite declarations accompanied by the documentation stipulated by the Controller of
Exchange.
5.15.6 Restrictions Applicable to Foreign Citizens Resident in Sri Lanka
Foreign citizens resident in Sri Lanka may make payments through Sri Lanka Rupee Accounts only if
they possess dual citizenship where one such citizenship is Sri Lankan. Foreign citizens having
Sri Lankan citizenship should attach a certified copy of the citizenship certificate with the
Application Form.
Foreign citizens residing in Sri Lanka having valid residency visas should note that they cannot make
remittances via cheques or bank drafts or bank guarantees or RTGS transfers drawn on Sri Lanka
Rupee accounts maintained with any LCBs in Sri Lanka but may do so via
SIA/FCBU/RGFCA/RGRCA-Investors account as detailed in Section 5.15.5 above. Applications made
by foreign citizens not in accordance to the foregoing shall be rejected.
5.16 Rejection of Applications
Application Forms which are incomplete in any way and/or are not in accordance with the terms
and conditions set out in Section 5.0 of this Prospectus will be rejected at the absolute discretion
of the Company.
Any Application which does not carry a CDS account number, or indicates a number of a CDS
account which is not opened at the time of the closure of the subscription list or which indicates
an inaccurate or incorrect CDS account number, shall be rejected and no allotment/transfer of
Shares will be made.


Applications delivered by hand after 4.30 p.m. Local Time on the Closure Date of the Offering will
be rejected. Applications received by courier/post after 4.30 p.m. Local Time on the succeeding
Market Day immediately following the Closure Date of the Offering, will also be rejected even if
they carry a courier acceptance date/postmark date earlier than the Closure Date.
Applications made for less than one hundred (100) Shares or for a number which is not in
multiples of hundred (100) Shares will be rejected.
Applicants should apply only through one investor category and would be permitted to submit
only one Application Form. Two or more Applications submitted by the same Applicant either
under the same category or different categories will be construed as multiple Applications and
will be rejected.
The Company reserves the right to reject multiple Applications and suspected multiple
Applications which are not allowed, as mentioned in Section 5.14.1.
Payment for Applications of Offered Shares of a value below Rs. 100,000,000/- accompanying
two or more cheques or bank drafts or bank guarantees as mentioned in Section 5.15.1, will be
rejected at the outset.
Applications made by individuals below 18 years of age or those in the names of sole
proprietorships, partnerships, unincorporated trusts and non-corporate bodies will be rejected.
Notwithstanding any provision contained herein, the Board of Directors shall reserve the right to
refuse any Application or to accept any Application in full or part.
5.17 Banking of Payments
All cheques or bank drafts or bank guarantees in respect of Applications will not be banked or called
on until the Market Day after the Closure Date of the subscription list, in terms of the CSE Listing
Rules.
5.18 Returning of Monies of Rejected Applications
Where an Application Form is rejected, the cheque or bank draft or bank guarantee received in
respect of the Application will be returned via ordinary post at the risk of the Applicant. In the case of
joint Applicants, the cheque or bank draft or bank guarantee received in respect of the Application
will be returned to the first named Applicant.
Where the Application Form is accepted and the cheque or bank draft or bank guarantee is not
honoured by the bank at the first presentation, the Application will also be rejected and the
dishonoured cheque or bank draft or bank guarantee will be returned via ordinary post at the risk of
the Applicant. In the case of joint Applicants, the dishonoured cheque or bank draft or bank
guarantee will be returned to the first named Applicant.
5.19 Allocation of Shares on Offer/Basis of Allocation
The allotment /transfer of Shares on Offer will be made to the various categories of Applicants, as set
out in Section 5.1, treating all Applicants in a fair manner as may be decided by the Board at its
discretion.
In determining the basis of allocation within the Retail Individual Investor Category, individual
investors who subscribe for a smaller number of shares shall be given priority in terms of the
CSE Listing Rule 3.1.5 (b) (ii) (2).
In the event of an undersubscription in the Retail Individual Investor Category, the Unit Trust Investor
Category shall be given first priority in the allocation of the unsubscribed Shares.

In the event of an undersubscription in the Unit Trust Investor Category, the Retail Individual Investor
In the event of an undersubscription in the Non-Retail Investor Category, the quantum of Shares
unsubscribed may be redistributed to the other two categories that may be oversubscribed in a fair
manner at the discretion of the Board of Directors.
In the event of an undersubscription in the Retail Individual Investor Category and the Unit Trust
Investor Category, the quantum of Shares unsubscribed may be redistributed to the Non-Retail
Investor Category that may be oversubscribed.
In the event of an oversubscription in any one or more of the categories, in spite of the
aforementioned distribution, the Offered Shares will be allocated at the discretion of the Board of
Directors of the Company in a fair manner.
Redistribution will not apply in the event of an oversubscription or undersubscription in all the
categories.
The Board of Directors of the Company will endeavour to decide and announce to the CSE the basis
of allocation as soon as practicable so as to ensure compliance with the Listing Rules. Upon the
allocation being decided, an announcement will be made to the CSE.
A written confirmation informing successful Applicants on their allocation of Offered Shares will be
dispatched within ten (10) Market Days from the Closure Date as required by the CSE.
5.20 Refunds on Applications
Where an Application is accepted only in part or rejected in its entirety subsequent to cheques being
realised, the balance/entirety of the monies received on Application as the case may be, will be
refunded. Such refunds will be made on or before the expiry of ten (10) Market Days from the
Closure Date (excluding the Closure Date) as required by the CSE Listing Rules. Applicants would be
entitled to receive interest at the last quoted AWPLR published by the CBSL plus 5%, on any refunds
not made by the expiry of the abovementioned period.
Refunds via SLIPS
The refund payment will be made to the bank account specified by the Applicant through the SLIPS
on or before the expiry of ten (10) Market Days from the Closure Date (excluding the Closure Date) as
required by the CSE Listing Rules and a payment advice shall be issued to the Applicant provided that
the Applicant has submitted accurate and complete details of Applicants bank account in the
Application Form.
However, SLIPS transfers are subject to a maximum limit of Rupees Five Million (Rs. 5,000,000/-)
imposed by the CBSL with effect from October 29, 2010 as per Operating Instruction Circular
No. 11/2010 dated October 25, 2010.
Even though the Applicant has requested for SLIPS transfer for refund amounts and submitted
accurate and complete details of the bank account in the Application Form, refund amounts
exceeding Rupees Five Million (Rs. 5,000,000/-) will be made by a crossed cheque in favour of the
Applicant and sent by ordinary post at the risk of the Applicant.
In the case of a joint Application, a crossed cheque will be drawn in favour of the Applicant whose
name appears first in the Application Form.

In the event the refund payment is effected via SLIPS based on the bank account details provided by
the Applicant in the Application Form, but is rejected by the Applicants bank due to inaccurate or
incomplete information, such refund payments would be made via a crossed cheque in favour of the
Applicant and sent by ordinary post at the risk of the Applicant. In such instances, the Company
together with the Registrars to the Offering will send the refund cheques to such Applicants at the
earliest possible and the Applicant should not hold the Company or the Registrars to the Offering
accountable for such delays.
Bank codes and branch codes could be obtained from the website, www.lankaclear.com through the
Quick Links access.
Refunds via Crossed Cheque
If the Applicant has not provided details of the bank account in the Application Form or has provided
inaccurate or incomplete details of the bank account with respect to refunds via SLIPS, the refund
payment will be made by a crossed cheque in favour of the Applicant and sent by ordinary post at the
risk of the Applicant. In the case of a joint Application, a crossed cheque will be drawn in favour of
the Applicant whose name appears first in the Application Form.
A request for cancellation of crossing on the refund cheque, in instances where the Applicant does
not maintain a current account, should be addressed to the Registrars to the Offering in writing,
stating the cheque number and the fact that the Applicant does not maintain a current account. The
refund cheque and a clear photocopy of the Applicants NIC should accompany the letter.
In the event of a refund cheque being delivered by hand by a third party to the Registrars to the
Offering for cancellation of crossing, a letter of authorisation signed by the Applicant stating the
NIC number of such third party should also be presented with the refund cheque. Refund cheques on
which the crossings have been cancelled by the Registrars to the Offering should preferably be
collected in person or by a third party authorised by the Applicant. Where an Applicant has requested
the delivery of the cheque on which the crossing has been cancelled via post, such cheque will be
sent at the risk of the Applicant.


In the event of an undersubscription in the Unit Trust Investor Category, the Retail Individual Investor
In the event of an undersubscription in the Non-Retail Investor Category, the quantum of Shares
unsubscribed may be redistributed to the other two categories that may be oversubscribed in a fair
manner at the discretion of the Board of Directors.
In the event of an undersubscription in the Retail Individual Investor Category and the Unit Trust
Investor Category, the quantum of Shares unsubscribed may be redistributed to the Non-Retail
Investor Category that may be oversubscribed.
In the event of an oversubscription in any one or more of the categories, in spite of the
aforementioned distribution, the Offered Shares will be allocated at the discretion of the Board of
Directors of the Company in a fair manner.
Redistribution will not apply in the event of an oversubscription or undersubscription in all the
categories.
The Board of Directors of the Company will endeavour to decide and announce to the CSE the basis
of allocation as soon as practicable so as to ensure compliance with the Listing Rules. Upon the
allocation being decided, an announcement will be made to the CSE.
A written confirmation informing successful Applicants on their allocation of Offered Shares will be
dispatched within ten (10) Market Days from the Closure Date as required by the CSE.
5.20 Refunds on Applications
Where an Application is accepted only in part or rejected in its entirety subsequent to cheques being
realised, the balance/entirety of the monies received on Application as the case may be, will be
refunded. Such refunds will be made on or before the expiry of ten (10) Market Days from the
Closure Date (excluding the Closure Date) as required by the CSE Listing Rules. Applicants would be
entitled to receive interest at the last quoted AWPLR published by the CBSL plus 5%, on any refunds
not made by the expiry of the abovementioned period.
Refunds via SLIPS
The refund payment will be made to the bank account specified by the Applicant through the SLIPS
on or before the expiry of ten (10) Market Days from the Closure Date (excluding the Closure Date) as
required by the CSE Listing Rules and a payment advice shall be issued to the Applicant provided that
the Applicant has submitted accurate and complete details of Applicants bank account in the
Application Form.
However, SLIPS transfers are subject to a maximum limit of Rupees Five Million (Rs. 5,000,000/-)
imposed by the CBSL with effect from October 29, 2010 as per Operating Instruction Circular
No. 11/2010 dated October 25, 2010.
Even though the Applicant has requested for SLIPS transfer for refund amounts and submitted
accurate and complete details of the bank account in the Application Form, refund amounts
exceeding Rupees Five Million (Rs. 5,000,000/-) will be made by a crossed cheque in favour of the
Applicant and sent by ordinary post at the risk of the Applicant.
In the case of a joint Application, a crossed cheque will be drawn in favour of the Applicant whose
name appears first in the Application Form.

In the event the refund payment is effected via SLIPS based on the bank account details provided by
the Applicant in the Application Form, but is rejected by the Applicants bank due to inaccurate or
incomplete information, such refund payments would be made via a crossed cheque in favour of the
Applicant and sent by ordinary post at the risk of the Applicant. In such instances, the Company
together with the Registrars to the Offering will send the refund cheques to such Applicants at the
earliest possible and the Applicant should not hold the Company or the Registrars to the Offering
accountable for such delays.
Bank codes and branch codes could be obtained from the website, www.lankaclear.com through the
Quick Links access.
Refunds via Crossed Cheque
If the Applicant has not provided details of the bank account in the Application Form or has provided
inaccurate or incomplete details of the bank account with respect to refunds via SLIPS, the refund
payment will be made by a crossed cheque in favour of the Applicant and sent by ordinary post at the
risk of the Applicant. In the case of a joint Application, a crossed cheque will be drawn in favour of
the Applicant whose name appears first in the Application Form.
A request for cancellation of crossing on the refund cheque, in instances where the Applicant does
not maintain a current account, should be addressed to the Registrars to the Offering in writing,
stating the cheque number and the fact that the Applicant does not maintain a current account. The
refund cheque and a clear photocopy of the Applicants NIC should accompany the letter.
In the event of a refund cheque being delivered by hand by a third party to the Registrars to the
Offering for cancellation of crossing, a letter of authorisation signed by the Applicant stating the
NIC number of such third party should also be presented with the refund cheque. Refund cheques on
which the crossings have been cancelled by the Registrars to the Offering should preferably be
collected in person or by a third party authorised by the Applicant. Where an Applicant has requested
the delivery of the cheque on which the crossing has been cancelled via post, such cheque will be
sent at the risk of the Applicant.


5.21 Successful Applicants and CDS Lodgement
The Offered Shares allotted/transferred (allocated) will be directly uploaded to the respective CDS
account given in the Application Form before the expiry of eighteen (18) Market Days from the
Closure Date of the Offering as required by the CSE Listing Rules.

A written confirmation, upon the completion of crediting the respective CDS accounts will be sent to
the Applicant within two (02) Market Days of crediting the CDS accounts by ordinary post to the
address provided by each Applicant in their respective Applications.
Applicants have the option of having their Shares locked in the CDS. Shares that are locked would
not be available for trading purposes and would not be visible to the participant. Such Applicants
would have to fill in the relevant section provided in the Application Form for this purpose. If the
Applicant has not specified that the Shares need to be deposited to the locked balance, the said
Shares would be deposited to Applicants trading balance.
Refer Section 5.14.1 for definition of locked.
Shares shall not be transferable by the Applicant/Shareholders during the period between the date of
allotment/transfer of the Offered Shares and up to the date of listing (excluding the date of listing) of
the Ordinary Voting Shares on the CSE.
Upon the Ordinary Voting Shares being listed on the CSE, such Shares shall be freely transferable
except for those Shares described in Section 10.3 and 10.5 of this Prospectus.
5.22 Declaration to the CSE and Secondary Market Trading
The Company will submit to the CSE a declaration on the Market Day immediately following the day
on which Applicants CDS accounts are credited with the Offered Shares. Trading of Ordinary Voting
Shares on the secondary market will commence on or before the third (3
rd
) Market Day from the
receipt of the declaration by the CSE as per the CSE Listing Rules.
NIC number.
November 30, 2010, all Shares allotted shall be directly uploaded to the CDS accounts. Existing shares transferred
to Applicants allocated on the Offer for Sale tranche would similarly be directly uploaded to the CDS Account of the
Applicant. As such, all Applicants should indicate their CDS account number in the Application Form. Applicants
who do not have a CDS account are advised to open a valid CDS account prior to submitting the Application, in
order to facilitate the uploading of allotted Shares to their CDS account.


6.0 OVERVIEW OF THE ALUMINIUM INDUSTRY
6.1 Overview
Aluminium is one of the most versatle, sustainable and widely used metals. It represents the second
largest metals market in the world. At present, aluminium has outpaced steel, copper and zinc in
terms of consumpton growth. It is believed that producton of aluminium is one of the most
environmentally friendly processes across the metals and mining industry as it can be endlessly
recycled while keeping its distnctve propertes.
At present, rising prices for substtute metals, such as zinc and copper have stmulated a direct
increase in demand for aluminium. Further, due to its unique combinaton of propertes, the variety
of applicatons of aluminium contnues to increase. Performance propertes and applicaton of
aluminium are depicted in the table below.

Table 6-1: Performance Propertes and Applicatons of Aluminium
Performance Propertes Applicatons
High conductvity of heat and electricity Condenser tubes, radiators and air conditoners in
the automobile industry, and in nuclear reactors,
boilers, cookers and cookware
Low density and strength Aircraf, lightweight vehicles, and ladders
Durability Weather-proof and corrosion-resistant
Easy shaping and corrosion resistance Curtain walling, window frames, rolling blinds,
doors, exterior cladding and roong, suspended
ceilings, wall panels and parttons
6.2 Aluminium Production Process
The main source of aluminium is bauxite.
Bauxite is a rock containing a mixture of
hydrous Al oxides. Production of bauxite is
widely available in bauxite-rich areas in
Western and Central Africa, South
America, Caribbean, Oceania and Southern
Asia, China, Mediterranean and Russia. As the
next stage of the production process, alumina is
refined from bauxite via the Bayer Process. It is
believed that countries like India, Iceland,
China, Russia, and UAE will enjoy growth
and development of aluminium production.

Figure 6-1: Aluminium Production Plant

5.21 Successful Applicants and CDS Lodgement
The Offered Shares allotted/transferred (allocated) will be directly uploaded to the respective CDS
account given in the Application Form before the expiry of eighteen (18) Market Days from the
Closure Date of the Offering as required by the CSE Listing Rules.

A written confirmation, upon the completion of crediting the respective CDS accounts will be sent to
the Applicant within two (02) Market Days of crediting the CDS accounts by ordinary post to the
address provided by each Applicant in their respective Applications.
Applicants have the option of having their Shares locked in the CDS. Shares that are locked would
not be available for trading purposes and would not be visible to the participant. Such Applicants
would have to fill in the relevant section provided in the Application Form for this purpose. If the
Applicant has not specified that the Shares need to be deposited to the locked balance, the said
Shares would be deposited to Applicants trading balance.
Refer Section 5.14.1 for definition of locked.
Shares shall not be transferable by the Applicant/Shareholders during the period between the date of
allotment/transfer of the Offered Shares and up to the date of listing (excluding the date of listing) of
the Ordinary Voting Shares on the CSE.
Upon the Ordinary Voting Shares being listed on the CSE, such Shares shall be freely transferable
except for those Shares described in Section 10.3 and 10.5 of this Prospectus.
5.22 Declaration to the CSE and Secondary Market Trading
The Company will submit to the CSE a declaration on the Market Day immediately following the day
on which Applicants CDS accounts are credited with the Offered Shares. Trading of Ordinary Voting
Shares on the secondary market will commence on or before the third (3
rd
) Market Day from the
receipt of the declaration by the CSE as per the CSE Listing Rules.
NIC number.
November 30, 2010, all Shares allotted shall be directly uploaded to the CDS accounts. Existing shares transferred
to Applicants allocated on the Offer for Sale tranche would similarly be directly uploaded to the CDS Account of the
Applicant. As such, all Applicants should indicate their CDS account number in the Application Form. Applicants
who do not have a CDS account are advised to open a valid CDS account prior to submitting the Application, in
order to facilitate the uploading of allotted Shares to their CDS account.


6.0 OVERVIEW OF THE ALUMINIUM INDUSTRY
6.1 Overview
Aluminium is one of the most versatle, sustainable and widely used metals. It represents the second
largest metals market in the world. At present, aluminium has outpaced steel, copper and zinc in
terms of consumpton growth. It is believed that producton of aluminium is one of the most
environmentally friendly processes across the metals and mining industry as it can be endlessly
recycled while keeping its distnctve propertes.
At present, rising prices for substtute metals, such as zinc and copper have stmulated a direct
increase in demand for aluminium. Further, due to its unique combinaton of propertes, the variety
of applicatons of aluminium contnues to increase. Performance propertes and applicaton of
aluminium are depicted in the table below.

Table 6-1: Performance Propertes and Applicatons of Aluminium
Performance Propertes Applicatons
High conductvity of heat and electricity Condenser tubes, radiators and air conditoners in
the automobile industry, and in nuclear reactors,
boilers, cookers and cookware
Low density and strength Aircraf, lightweight vehicles, and ladders
Durability Weather-proof and corrosion-resistant
Easy shaping and corrosion resistance Curtain walling, window frames, rolling blinds,
doors, exterior cladding and roong, suspended
ceilings, wall panels and parttons
6.2 Aluminium Production Process
The main source of aluminium is bauxite.
Bauxite is a rock containing a mixture of
hydrous Al oxides. Production of bauxite is
widely available in bauxite-rich areas in
Western and Central Africa, South
America, Caribbean, Oceania and Southern
Asia, China, Mediterranean and Russia. As the
next stage of the production process, alumina is
refined from bauxite via the Bayer Process. It is
believed that countries like India, Iceland,
China, Russia, and UAE will enjoy growth
and development of aluminium production.

Figure 6-1: Aluminium Production Plant


In 2013, the total world aluminium
production was approximately
47 million metric tons according to the
statistics provided by the International
Aluminium Institute.
Moreover, China produced a total of 20
million metric tons whilst other Asian
countries have produced
2.2 million metric tons during 2013.
Further, India is expected to be ranked
as the second most promising aluminium
market globally due to the rapid
urbanization. Source: RUSAL

The global aluminium industry is fairly concentrated and majority of the key producers are major
corporations such as Alcoa Inc., Dubai Aluminum Co. Ltd. (DUBAL), RUSAL United Co. (RUSAL) and
BHP Billiton Limited. However, given the high capital intensity and energy consumption in the
production of aluminium, major firms now invest in smelting operations which have access to cheap
power resources.
The increase in the world population along with a rapid development and urbanization of the
developing countries have contributed mainly towards the rising global demand for aluminium. As
per the industry research carried out by Infiniti Research Limited, the global aluminium market is
expected to grow at a Compound Annual Growth Rate (CAGR) of 5.90% over next five years.
Moreover, the global consumption of aluminium is forecast to reach approximately 58 million tons in
2015 based on a research carried out by RUSAL as depicted in Figure 6-4.
Figure 6-2: Major Bauxite Producing Countries
Figure 6-3: Primary Aluminium Production January - October 2013

Source: RUSAL
Figure 6-4: Global Aluminium Consumpton
Thus far the construction industry represents as the biggest consumer of aluminium in developing
countries owing to the substantial investments in the infrastructure development. Construction and
transportation industries are known to be the major consumers of most of the aluminium produced
in the above countries.

6.3 Markets for Aluminium
Aluminium is widely used in many products. Transportation, beverage cans and other packaging, and
building/construction are well known markets for aluminium. Thus far, the construction industry is
considered as the biggest consumer of aluminium in developing countries owing to the substantial
investments in the infrastructure development.
Building and Construction: Aluminium is a widely used product in the residential, industrial,
commercial, farm, and highway sectors.
Transportation: The majority of the aluminium is currently being used in automotive and light truck
applications, as vehicle manufacturers continue to opt for lightweight aluminium solutions to
improve fuel economy, reduce emissions and enhance vehicle performance.
Packaging: Aluminium is also used in products such as beverage cans and bottles, food containers,
and household and institutional foil. Furthermore, aluminium's low weight gives it a competitive
advantage over other materials with regard to shipping costs.
Electrical: Aluminium has many advantages for electrical applications. It is lightweight, strong,
corrosion resistant, and a highly efficient conductor. It is also infinitely recyclable, making it a perfect
fit for todays environment.
6.4 Aluminium Industry in Sri Lanka
The Sri Lankan aluminium industry is poised for rapid expansion in downstream sectors such as
casting and fabricating. The demand and consumption of aluminium is expected to increase as a
result of the continuing trend of economic growth. Higher consumption levels in building and
infrastructure, power, consumer durables and other industrial sectors will contribute towards the
aforementioned increase in consumption. As a result, the aluminium demand in Sri Lanka is
anticipated to grow more than 50% by 2019 according to the industry experts.


In 2013, the total world aluminium
production was approximately
47 million metric tons according to the
statistics provided by the International
Aluminium Institute.
Moreover, China produced a total of 20
million metric tons whilst other Asian
countries have produced
2.2 million metric tons during 2013.
Further, India is expected to be ranked
as the second most promising aluminium
market globally due to the rapid
urbanization. Source: RUSAL

The global aluminium industry is fairly concentrated and majority of the key producers are major
corporations such as Alcoa Inc., Dubai Aluminum Co. Ltd. (DUBAL), RUSAL United Co. (RUSAL) and
BHP Billiton Limited. However, given the high capital intensity and energy consumption in the
production of aluminium, major firms now invest in smelting operations which have access to cheap
power resources.
The increase in the world population along with a rapid development and urbanization of the
developing countries have contributed mainly towards the rising global demand for aluminium. As
per the industry research carried out by Infiniti Research Limited, the global aluminium market is
expected to grow at a Compound Annual Growth Rate (CAGR) of 5.90% over next five years.
Moreover, the global consumption of aluminium is forecast to reach approximately 58 million tons in
2015 based on a research carried out by RUSAL as depicted in Figure 6-4.
Figure 6-2: Major Bauxite Producing Countries
Figure 6-3: Primary Aluminium Production January - October 2013

Source: RUSAL
Figure 6-4: Global Aluminium Consumpton
Thus far the construction industry represents as the biggest consumer of aluminium in developing
countries owing to the substantial investments in the infrastructure development. Construction and
transportation industries are known to be the major consumers of most of the aluminium produced
in the above countries.

6.3 Markets for Aluminium
Aluminium is widely used in many products. Transportation, beverage cans and other packaging, and
building/construction are well known markets for aluminium. Thus far, the construction industry is
considered as the biggest consumer of aluminium in developing countries owing to the substantial
investments in the infrastructure development.
Building and Construction: Aluminium is a widely used product in the residential, industrial,
commercial, farm, and highway sectors.
Transportation: The majority of the aluminium is currently being used in automotive and light truck
applications, as vehicle manufacturers continue to opt for lightweight aluminium solutions to
improve fuel economy, reduce emissions and enhance vehicle performance.
Packaging: Aluminium is also used in products such as beverage cans and bottles, food containers,
and household and institutional foil. Furthermore, aluminium's low weight gives it a competitive
advantage over other materials with regard to shipping costs.
Electrical: Aluminium has many advantages for electrical applications. It is lightweight, strong,
corrosion resistant, and a highly efficient conductor. It is also infinitely recyclable, making it a perfect
fit for todays environment.
6.4 Aluminium Industry in Sri Lanka
The Sri Lankan aluminium industry is poised for rapid expansion in downstream sectors such as
casting and fabricating. The demand and consumption of aluminium is expected to increase as a
result of the continuing trend of economic growth. Higher consumption levels in building and
infrastructure, power, consumer durables and other industrial sectors will contribute towards the
aforementioned increase in consumption. As a result, the aluminium demand in Sri Lanka is
anticipated to grow more than 50% by 2019 according to the industry experts.


With the influx of high-rises and its ability to substitute timber products, aluminium extrusions have
become an invaluable product. Sri Lankan aluminium extrusion market consists of the following as
depicted below.
Table 6-2: Aluminium Products in Sri Lanka
Extrusion Technology
and Services

Aging Ovens, Anodizing Chemicals, Anodizing Systems, Automated
Handling Systems, Belts, Billet Casting
Equipment, Billet Suppliers, Computer Numerical Control (CNC)
Fabrication Centres, Die Cleaning Equipment, Die Design, Die Ovens/Die
Preheat
Furnaces, Die Polishing Equipment, Die Storage Systems, Dies, Dross
Treatment/Removal, Furnaces Billet Heating, Gas Suppliers/Systems,
Handling Systems and Materials
Extruded Profiles Building and Construction Transportation, Solar , Electrical, Industrial,
Defence
Other Products and
Services
Metalworking Tools, Consulting, Software, Media, Publication
Source: Sri Lanka Aluminium Extrusion International

The development strategy and policy measures adopted by authorities during the post-conflict
period in Sri Lanka have been well established to achieve the target of becoming a
US Dollar 100 billion economy. The stronger economic performance in Sri Lanka has lifted countrys
per capita income substantially. Thus, the rapid growth in the economy indicates the need for a
development plan in Colombo and its immediate environs.
Consequently, the construction sector recorded a remarkable growth of 21.6% in 2012 compared to
14.2% in 2011. This is considered as the highest growth registered by the sub sector in the past ten
years. Public infrastructure development projects such as road development, power projects, port
and airport development and housing development projects contributed mainly towards the driven
growth.
Table 6-3: Real GDP and Construc on at Constant (2002) Prices
Year 2009 2010 2011 2012* 2013
(6 Months)*
Real GDP (Rs.Mn) 2,449,214 2,645,542 2,863,715 3,047,277
1,575,418
Construc on (Rs.Mn) 162,790 177,912 203,204 247,091 134,471
Share of GDP 6.65% 6.72% 7.10% 8.11% 8.54%

*Provisional Figures
Source: Central Bank of Sri Lanka


As illustrated in the above figure, construction share as a percentage of GDP indicates a continuous
growth and accounted to 8.11% in 2012 in comparison to 7.10% achieved in 2011. Aluminium
extrusion industry in Sri Lanka has experienced an expansion due to its wide application in industries
such as construction, aviation, defence, solar, power and electrical. Therefore, demand for
aluminium is seeing strong growth in Sri Lanka, underpinned by a rapid infrastructure development.

Figure 6-5: Real GDP Growth Rate and the Construction Sector Growth


With the influx of high-rises and its ability to substitute timber products, aluminium extrusions have
become an invaluable product. Sri Lankan aluminium extrusion market consists of the following as
depicted below.
Table 6-2: Aluminium Products in Sri Lanka
Extrusion Technology
and Services

Aging Ovens, Anodizing Chemicals, Anodizing Systems, Automated
Handling Systems, Belts, Billet Casting
Equipment, Billet Suppliers, Computer Numerical Control (CNC)
Fabrication Centres, Die Cleaning Equipment, Die Design, Die Ovens/Die
Preheat
Furnaces, Die Polishing Equipment, Die Storage Systems, Dies, Dross
Treatment/Removal, Furnaces Billet Heating, Gas Suppliers/Systems,
Handling Systems and Materials
Extruded Profiles Building and Construction Transportation, Solar , Electrical, Industrial,
Defence
Other Products and
Services
Metalworking Tools, Consulting, Software, Media, Publication
Source: Sri Lanka Aluminium Extrusion International

The development strategy and policy measures adopted by authorities during the post-conflict
period in Sri Lanka have been well established to achieve the target of becoming a
US Dollar 100 billion economy. The stronger economic performance in Sri Lanka has lifted countrys
per capita income substantially. Thus, the rapid growth in the economy indicates the need for a
development plan in Colombo and its immediate environs.
Consequently, the construction sector recorded a remarkable growth of 21.6% in 2012 compared to
14.2% in 2011. This is considered as the highest growth registered by the sub sector in the past ten
years. Public infrastructure development projects such as road development, power projects, port
and airport development and housing development projects contributed mainly towards the driven
growth.
Table 6-3: Real GDP and Construc on at Constant (2002) Prices
Year 2009 2010 2011 2012* 2013
(6 Months)*
Real GDP (Rs.Mn) 2,449,214 2,645,542 2,863,715 3,047,277
1,575,418
Construc on (Rs.Mn) 162,790 177,912 203,204 247,091 134,471
Share of GDP 6.65% 6.72% 7.10% 8.11% 8.54%

*Provisional Figures


As illustrated in the above figure, construction share as a percentage of GDP indicates a continuous
growth and accounted to 8.11% in 2012 in comparison to 7.10% achieved in 2011. Aluminium
extrusion industry in Sri Lanka has experienced an expansion due to its wide application in industries
such as construction, aviation, defence, solar, power and electrical. Therefore, demand for
aluminium is seeing strong growth in Sri Lanka, underpinned by a rapid infrastructure development.

Figure 6-5: Real GDP Growth Rate and the Construction Sector Growth

7.0 BUSINESS OPERATIONS OF ALUMEX GROUP

7.1 Group Structure
The current group structure of Alumex Group is presented below.
v

Figure 7-1: Group Structure of Alumex Group
7.1.1 Alumex Group
Alumex is a subsidiary company within the diversified conglomerate, Hayleys PLC (acquired on
November 04, 2010). Hayleys PLC is a diversified Sri Lankan multinational with multifaceted
manufacturing operations and capabilities with products marketed in over 80 countries across the
globe. The Alumex Group currently holds over 50% of the local market share (source: Data One
import statistics and Annual Reports of the listed peers), in the business of manufacture of
Aluminium extrusions in Sri Lanka, under the registered brand name Alumex. Alumex Group has a
long history of over twenty five years having commenced commercial operations in the aluminium
business in 1988 through Alumex (Private) Limited which was incorporated in 1986 (Please refer
Section 7.13 of this Prospectus) and possesses a well-established customer base. Together, the Group
is shaping a future through a global reach and local presence within extrusions and building systems.
Alumex Group has three extrusion plants, two powder coating lines, two anodizing lines and one
wood effect coating facility in Sri Lanka.
7.1.2 Alumex Limited
Alumex Group is the premier manufacturer of aluminium extrusions in Sri Lanka. The manufacturing
operation is comprised of facilities for melting and casting, die manufacturing, extruding and surface
coating profiles for industrial and architectural industry. Over the years, Alumex has developed its
processes to cater to the demands of the architectural industry by improving its quality and capacity.
The Company has a 7 inch extruder which can cater to a majority of the demand in Sri Lanka. It also
produces the entire range of products required from mill finished, anodised, powder coated to wood
effect profiles. Alumex received international recognition from AluK of Italy and in recent times,
Fletcher Aluminium of New Zealand certified Alumex to manufacture their profiles in Sri Lanka.
Alumex is an ISO 9001:2008 certified company and an approved applicator for JOTUN and DGL
International powders. It also operates as the parent company for two fully owned subsidiaries
namely, Avro Enterprise (Private) Limited and Alco Industries (Private) Limited.


Alumex presently markets its products in Maldives, India and Bangladesh. In the past, Alumex has
done several projects in Australia. In future, Alumex hopes to receive international certification for
its own designs for windows and door systems which will create more opportunities in the
international markets. The main objective of Alumex is to grow its exports and have a strong
presence in the South Asian region as morefully described in Section 7.18.
7.1.3 Alco Industries (Private) Limited
Alco Industries (Private) Limited, a company approved by the Board of Investments (BOI), was
incorporated in 2010. It has a modern facility which manufactures aluminium components required
by industries such as building construction (interior and exterior), bus body/lorry body building and
rail coach building hardware. It also manufactures components such as clamps and connectors
required by the Ceylon Electricity Board, door handles, rollers, brackets, tile and carpet edging,
hinges, ladders, components required by the air conditioning industry and heat sinks required by the
electrical/electronics industry, etc.
The main objective of this company is to manufacture components and industrial tools required by
the Sri Lankan industries by introducing the latest technical advancements in components technology
to Sri Lanka. It has many environmental friendly features and exploits the emerging opportunities of
the increasing market potential for components industry especially in the current development phase
that the country is marching towards.
Alco Industries (Private) Limiteds plant is equipped with a modern press machine of 1540US Tons
capacity, working tables (tables, stretcher systems, pullers, saw, cooling fans, etc.), multi log heating
furnace, die furnace with three compartments, aging furnace, etc. The most important machinery in
the process is the hydraulic press machine, and the input to the press machine comes through log
pre-heater and log shear, whilst the output is transferred to the cooling bed. Die pre-heating is an
auxiliary process to the press operation. Artificial aging is a strengthening mechanism to components
produced.
Alco Industries (Private) Limited utilises most energy efficient systems affiliated to the industry at
present (e.g.: multi cell die pre-heating oven). Controlling of cooling rate is paramount important
parameter in the field of heat treatments for metals. For this, a sophisticated air cooling system has
been introduced to the initial table, which is the first part of the cooling bed. The operation of the
press machine and associated machinery is controlled by Programmable Logic Control (PLC) units; as
a result utilisation of human beings in the process is minimised. Due to its superior manufacturing
technology, the plant is highly energy efficient and is able to reduce the cost of production
substantially.
7.1.4 Avro Enterprises (Private) Limited
Avro Enterprises (Private) Limited was incorporated in 2008. In addition to performing as a retail
channel for aluminium extrusion and components, it has a product portfolio covering a range of
aluminium accessories and related products supplied by both manufacturing plants.
Avro Enterprises (Private) Limited is the national distributor for Alpolic Aluminium Composite panels
manufactured by Mitsubishi Plastic Inc. Japan, Corian Composite panels manufactured by DuPont Inc.
USA, Elumatec Aluminium and UPVC processing machines manufactured by Elumatec Germany and
Assa Abloy/Interlock Aluminium hardware accessories manufactured by Interlock New Zealand.


7.0 BUSINESS OPERATIONS OF ALUMEX GROUP

7.1 Group Structure
The current group structure of Alumex Group is presented below.
v

Figure 7-1: Group Structure of Alumex Group
7.1.1 Alumex Group
Alumex is a subsidiary company within the diversified conglomerate, Hayleys PLC (acquired on
November 04, 2010). Hayleys PLC is a diversified Sri Lankan multinational with multifaceted
manufacturing operations and capabilities with products marketed in over 80 countries across the
globe. The Alumex Group currently holds over 50% of the local market share (source: Data One
import statistics and Annual Reports of the listed peers), in the business of manufacture of
Aluminium extrusions in Sri Lanka, under the registered brand name Alumex. Alumex Group has a
long history of over twenty five years having commenced commercial operations in the aluminium
business in 1988 through Alumex (Private) Limited which was incorporated in 1986 (Please refer
Section 7.13 of this Prospectus) and possesses a well-established customer base. Together, the Group
is shaping a future through a global reach and local presence within extrusions and building systems.
Alumex Group has three extrusion plants, two powder coating lines, two anodizing lines and one
wood effect coating facility in Sri Lanka.
7.1.2 Alumex Limited
Alumex Group is the premier manufacturer of aluminium extrusions in Sri Lanka. The manufacturing
operation is comprised of facilities for melting and casting, die manufacturing, extruding and surface
coating profiles for industrial and architectural industry. Over the years, Alumex has developed its
processes to cater to the demands of the architectural industry by improving its quality and capacity.
The Company has a 7 inch extruder which can cater to a majority of the demand in Sri Lanka. It also
produces the entire range of products required from mill finished, anodised, powder coated to wood
effect profiles. Alumex received international recognition from AluK of Italy and in recent times,
Fletcher Aluminium of New Zealand certified Alumex to manufacture their profiles in Sri Lanka.
Alumex is an ISO 9001:2008 certified company and an approved applicator for JOTUN and DGL
International powders. It also operates as the parent company for two fully owned subsidiaries
namely, Avro Enterprise (Private) Limited and Alco Industries (Private) Limited.


Alumex presently markets its products in Maldives, India and Bangladesh. In the past, Alumex has
done several projects in Australia. In future, Alumex hopes to receive international certification for
its own designs for windows and door systems which will create more opportunities in the
international markets. The main objective of Alumex is to grow its exports and have a strong
presence in the South Asian region as morefully described in Section 7.18.
7.1.3 Alco Industries (Private) Limited
Alco Industries (Private) Limited, a company approved by the Board of Investments (BOI), was
incorporated in 2010. It has a modern facility which manufactures aluminium components required
by industries such as building construction (interior and exterior), bus body/lorry body building and
rail coach building hardware. It also manufactures components such as clamps and connectors
required by the Ceylon Electricity Board, door handles, rollers, brackets, tile and carpet edging,
hinges, ladders, components required by the air conditioning industry and heat sinks required by the
electrical/electronics industry, etc.
The main objective of this company is to manufacture components and industrial tools required by
the Sri Lankan industries by introducing the latest technical advancements in components technology
to Sri Lanka. It has many environmental friendly features and exploits the emerging opportunities of
the increasing market potential for components industry especially in the current development phase
that the country is marching towards.
Alco Industries (Private) Limiteds plant is equipped with a modern press machine of 1540US Tons
capacity, working tables (tables, stretcher systems, pullers, saw, cooling fans, etc.), multi log heating
furnace, die furnace with three compartments, aging furnace, etc. The most important machinery in
the process is the hydraulic press machine, and the input to the press machine comes through log
pre-heater and log shear, whilst the output is transferred to the cooling bed. Die pre-heating is an
auxiliary process to the press operation. Artificial aging is a strengthening mechanism to components
produced.
Alco Industries (Private) Limited utilises most energy efficient systems affiliated to the industry at
present (e.g.: multi cell die pre-heating oven). Controlling of cooling rate is paramount important
parameter in the field of heat treatments for metals. For this, a sophisticated air cooling system has
been introduced to the initial table, which is the first part of the cooling bed. The operation of the
press machine and associated machinery is controlled by Programmable Logic Control (PLC) units; as
a result utilisation of human beings in the process is minimised. Due to its superior manufacturing
technology, the plant is highly energy efficient and is able to reduce the cost of production
substantially.
7.1.4 Avro Enterprises (Private) Limited
Avro Enterprises (Private) Limited was incorporated in 2008. In addition to performing as a retail
channel for aluminium extrusion and components, it has a product portfolio covering a range of
aluminium accessories and related products supplied by both manufacturing plants.
Avro Enterprises (Private) Limited is the national distributor for Alpolic Aluminium Composite panels
manufactured by Mitsubishi Plastic Inc. Japan, Corian Composite panels manufactured by DuPont Inc.
USA, Elumatec Aluminium and UPVC processing machines manufactured by Elumatec Germany and
Assa Abloy/Interlock Aluminium hardware accessories manufactured by Interlock New Zealand.


The objective of Avro Enterprises (Private) Limited is to become the Leading Building System Solution
Provider in the Sri Lankan market.

7.2 Vision and Mission

Vision: To be the premier
aluminium extrusions provider
in the South Asian Region
36 |Alumex Limited Inital Public Oering

7.3 Values of Alumex Group
Integrity: Ethical and transparent in all our dealings
Enduring Customer Value: Enhancing experiences for every customer, from the rural farmer
to the global consumer
A Will to Win: Exhibiting the will to win that which is important to Alumex and its shareholders
Respect for People: Treating everyone with respect and dignity, providing for the development of
our people and rewarding them for good performance
Good Citizenship: Caring for the communities in which they work, actively supporting their growth
and being environmentally responsible in all we do
Teamwork: Working with each other and with partners across boundaries to make things happen
7.4 Business Processes
Aluminium is a flexible metal that exposed itself to many production methods which in turn lead to
the introduction of a range of different products that can be made out of aluminium.

Figure 7-2: Business Process

7.4.1 Raw Materials
Alumex Group imports semi-finished casting products (Aluminium
Alloyed 6063/6061 logs) from internationally recognized
manufacturers. Its main imported products are logs and ingots and
plays an integral role in the production of many aluminium products.
Ingots and logs are used in the extrusion process. Plate, wire, sheet,
foil, rod, and bar products are all produced by pressing or rolling
ingots and logs/billets. Groups average aluminium consumption is
approximately 400 metric tons per month out of which imported aluminium is approximately 300
metric tons. The balance is sourced locally in scrap form for recycling through which aluminium
alloyed logs (6063/6061) are made.
All the material used in the plants are from world renowned manufacturers. The Company imports
aluminium extrusion logs from international manufacturers such as DUBAL (UAE), Hydro Aluminium
and Rio Tinto Alcan. Chemicals for anodizing are supplied by SurTec (Germany). Powders for powder
coatings are supplied by Orica/Dulux (Australia/ New Zealand), Akzo Nobel (Europe) and JOTUN from
Norway.
7.4.2 Billet Casting (Melting)
In addition to the imported logs, Alumex produces logs locally from recycled aluminium mixed with
virgin ingots. This is a manufacturing process where a liquid material is (usually) poured into a mould,
which contains a hollow cavity of the desired shape, and then allowed to solidify.
The log casting section has a modern foundry shop equipped with
melting furnaces (two), a vertical hot top casting machine and
homogenizing facilities for manufacturing of logs. It also has a hi-tech
spectrometer (a photon measuring device that captures the spectrum
of the signal) to analyse the alloying components/metals to ensure the
quality of the logs. Thus, Alumex Group is well equipped to meet the
growing demand in wide array of aluminium products and
components.
7.4.3 Extrusion Die Designing and Manufacturing
Alumex Group is the sole designer/manufacturer of
aluminium extrusion dies for virtually any shape of
aluminium profiles in Sri Lanka and this ability providing the
Company with an advantage over its competitors. The
designs are done according to the customers/industry
requirements as well as to get the best out of extruder such
as reduction in pressure and maximum production. The die
shop is equipped with sophisticated CNC machinery with
CAD/CAM software for wire cutting and spark erosion,
milling machines and other die finishing facilities including
heat treatment and surface treatment equipment.


The process of manufacture consists of the design being drawn on a BS: H13 high carbon die steel
plate (blank) according to the specification given in the die drawing. Subsequently, it is processed by
lathe machining, drilling, milling, grinding, CNC Electrical Discharge Machine (EDM), CNC wire cut
machines and sent through a heat treatment process to carry out case hardening work. The die
(mould) will then be sent through a nitriding process. The experienced designers and production
engineers of Alumex create high quality dies within very short lead-times.
7.4.4 Plant Specifications
Table 7-1: Plant Specifications
Plant Specification
Alumex Limited Plant 1 - Extrusion Press 1000 metric tons
- Billet Size 5 (122mm)
Alco Industries (Private) Limited Plant 1 - Extrusion Press 1540 metric tons for
Manufacturing of Component
7.4.5 Extrusion
Extruding is a process whereby aluminium logs
are heated to approximately 450-500C and
forcing the hot metal through a steel die. The
output of this process is called mill finished
aluminium extrusion. A smaller percentage of
extruded aluminium will be sent out to customers
as mill finished products upon request after
aging.
The use of aluminium extrusion has increased
noticeably due to its distinctive properties, which
facilitate to produce multitude of products that can be readily formed into complex shapes. Extruded
aluminium is considered inexpensive and lead times for custom shapes are relatively brief. Extruded
aluminium is mostly used in architectural applications to form complex shapes and the life-cycle
value of the product remains high due to aluminiums recyclability. It is the most abundant green
metal in the world.
Alumex Group has three extrusion machines, out of which two are operating sixteen (16) hour per
day, every day except Saturdays and Sundays and utilises
capacity up to 40% of its 1000 metric tons per month
available capacity. The third machine operates as and
when it is necessary. Additionally, the Group is capable of
extruding any profile up to circumscribing diameter (CCD)
220 mm. The present production capacity is in excess of
12,000 metric tons per annum. The largest consumer of
these products in Sri Lanka is the building industry, which
uses aluminium extrusions in window and door frames. Other applications for extruded aluminium
products include engineering applications, bicycle frames, structural automotive components, pipes
and tubes, furniture, bus, lorry and rail coaches.

7.4.1 Raw Materials
Alumex Group imports semi-finished casting products (Aluminium
Alloyed 6063/6061 logs) from internationally recognized
manufacturers. Its main imported products are logs and ingots and
plays an integral role in the production of many aluminium products.
Ingots and logs are used in the extrusion process. Plate, wire, sheet,
foil, rod, and bar products are all produced by pressing or rolling
ingots and logs/billets. Groups average aluminium consumption is
approximately 400 metric tons per month out of which imported aluminium is approximately 300
metric tons. The balance is sourced locally in scrap form for recycling through which aluminium
alloyed logs (6063/6061) are made.
All the material used in the plants are from world renowned manufacturers. The Company imports
aluminium extrusion logs from international manufacturers such as DUBAL (UAE), Hydro Aluminium
and Rio Tinto Alcan. Chemicals for anodizing are supplied by SurTec (Germany). Powders for powder
coatings are supplied by Orica/Dulux (Australia/ New Zealand), Akzo Nobel (Europe) and JOTUN from
Norway.
7.4.2 Billet Casting (Melting)
In addition to the imported logs, Alumex produces logs locally from recycled aluminium mixed with
virgin ingots. This is a manufacturing process where a liquid material is (usually) poured into a mould,
which contains a hollow cavity of the desired shape, and then allowed to solidify.
The log casting section has a modern foundry shop equipped with
melting furnaces (two), a vertical hot top casting machine and
homogenizing facilities for manufacturing of logs. It also has a hi-tech
spectrometer (a photon measuring device that captures the spectrum
of the signal) to analyse the alloying components/metals to ensure the
quality of the logs. Thus, Alumex Group is well equipped to meet the
growing demand in wide array of aluminium products and
components.
7.4.3 Extrusion Die Designing and Manufacturing
Alumex Group is the sole designer/manufacturer of
aluminium extrusion dies for virtually any shape of
aluminium profiles in Sri Lanka and this ability providing the
Company with an advantage over its competitors. The
designs are done according to the customers/industry
requirements as well as to get the best out of extruder such
as reduction in pressure and maximum production. The die
shop is equipped with sophisticated CNC machinery with
CAD/CAM software for wire cutting and spark erosion,
milling machines and other die finishing facilities including
heat treatment and surface treatment equipment.


The process of manufacture consists of the design being drawn on a BS: H13 high carbon die steel
plate (blank) according to the specification given in the die drawing. Subsequently, it is processed by
lathe machining, drilling, milling, grinding, CNC Electrical Discharge Machine (EDM), CNC wire cut
machines and sent through a heat treatment process to carry out case hardening work. The die
(mould) will then be sent through a nitriding process. The experienced designers and production
engineers of Alumex create high quality dies within very short lead-times.
7.4.4 Plant Specifications
Table 7-1: Plant Specifications
Plant Specification
Alco Industries (Private) Limited Plant 1 - Extrusion Press 1540 metric tons for
Manufacturing of Component
7.4.5 Extrusion
Extruding is a process whereby aluminium logs
are heated to approximately 450-500C and
forcing the hot metal through a steel die. The
output of this process is called mill finished
aluminium extrusion. A smaller percentage of
extruded aluminium will be sent out to customers
as mill finished products upon request after
aging.
The use of aluminium extrusion has increased
noticeably due to its distinctive properties, which
facilitate to produce multitude of products that can be readily formed into complex shapes. Extruded
aluminium is considered inexpensive and lead times for custom shapes are relatively brief. Extruded
aluminium is mostly used in architectural applications to form complex shapes and the life-cycle
value of the product remains high due to aluminiums recyclability. It is the most abundant green
metal in the world.
Alumex Group has three extrusion machines, out of which two are operating sixteen (16) hour per
day, every day except Saturdays and Sundays and utilises
capacity up to 40% of its 1000 metric tons per month
available capacity. The third machine operates as and
when it is necessary. Additionally, the Group is capable of
extruding any profile up to circumscribing diameter (CCD)
220 mm. The present production capacity is in excess of
12,000 metric tons per annum. The largest consumer of
these products in Sri Lanka is the building industry, which
uses aluminium extrusions in window and door frames. Other applications for extruded aluminium
products include engineering applications, bicycle frames, structural automotive components, pipes
and tubes, furniture, bus, lorry and rail coaches.

7.4.6 Stretching and Cutting
As the extruded section emerges, it is cooled and cut to the desired length. A "stretcher" may be
employed after the profile has been quenched in order to straighten the extrusion and correct any
twist that may have occurred subsequent to extrusion. Thereafter, a finish cut saw is used to cut the
profile to the specified commercial lengths.
7.4.7 Aging
Heat treatment is then used to optimise the materials
inherent mechanical properties and ensures maximum
strength, hardness, and elasticity for the specific extrusion
profile. Natural aging occurs at room temperature whilst
artificial aging takes place through controlled heating in an
aging oven.
7.4.8 Anodizing
Anodizing is an electrochemical process that forms a protective
coating of aluminium oxide, which is a hard, durable, weather
resistant substance that protects the base metal, on the surface of
the aluminium. Extruded and aged aluminium profiles will be
immersed into an acid electrolyte bath and an electric current
passed through the medium to anodize. The two anodizing plants
have a combined capacity of over 5,400 metric tons per annum. The
process is capable of coating to a thickness range of 5 to 25 micron. Colour options available are
natural, bronze (light to dark) and black.
7.4.9 Powder Coating
Powder coating is a type of dry coating, which is applied as a
free-flowing, dry powder. The coating is typically applied
electrostatically and is then cured under heat to allow it to
flow and form a "cover". The powder is made out of
polyester and is usually used to create a hard finish that is
tougher than conventional paint.

Powder coating is the most favoured, durable, and cost-effective alternative for finished extrusions
as it increases protection from cold, heat, corrosion and scratching. Powder coating finishes are being
used widely in the production of thousands of consumer, commercial and industrial products in Sri
Lanka at present. It provides an attractive finish for aluminium extrusion products whilst its
mechanical properties can be crafted to meet the varied requirements of customers.
Alumex Group has a polyester powder coating plant with a capacity of over 1,800 metric tons per
annum and has planned to double its capacity. Polyester powder coating, also known as colour
coating on aluminium, is a solvent-free, durable, factory applied coating for aluminium substrates. It
is a thermosetting coating where the resin cross links after being stove at around 200 C (curing).
Alumex Group offers a range of powder colours and powder qualities with 10 years, 15 years and
20 years guarantees.

7.4.6 Stretching and Cutting
As the extruded section emerges, it is cooled and cut to the desired length. A "stretcher" may be
employed after the profile has been quenched in order to straighten the extrusion and correct any
twist that may have occurred subsequent to extrusion. Thereafter, a finish cut saw is used to cut the
profile to the specified commercial lengths.
7.4.7 Aging
Heat treatment is then used to optimise the materials
inherent mechanical properties and ensures maximum
strength, hardness, and elasticity for the specific extrusion
profile. Natural aging occurs at room temperature whilst
artificial aging takes place through controlled heating in an
aging oven.
7.4.8 Anodizing
Anodizing is an electrochemical process that forms a protective
coating of aluminium oxide, which is a hard, durable, weather
resistant substance that protects the base metal, on the surface of
the aluminium. Extruded and aged aluminium profiles will be
immersed into an acid electrolyte bath and an electric current
passed through the medium to anodize. The two anodizing plants
have a combined capacity of over 5,400 metric tons per annum. The
process is capable of coating to a thickness range of 5 to 25 micron. Colour options available are
natural, bronze (light to dark) and black.
7.4.9 Powder Coating
Powder coating is a type of dry coating, which is applied as a
free-flowing, dry powder. The coating is typically applied
electrostatically and is then cured under heat to allow it to
flow and form a "cover". The powder is made out of
polyester and is usually used to create a hard finish that is
tougher than conventional paint.

Powder coating is the most favoured, durable, and cost-effective alternative for finished extrusions
as it increases protection from cold, heat, corrosion and scratching. Powder coating finishes are being
used widely in the production of thousands of consumer, commercial and industrial products in Sri
Lanka at present. It provides an attractive finish for aluminium extrusion products whilst its
mechanical properties can be crafted to meet the varied requirements of customers.
Alumex Group has a polyester powder coating plant with a capacity of over 1,800 metric tons per
annum and has planned to double its capacity. Polyester powder coating, also known as colour
coating on aluminium, is a solvent-free, durable, factory applied coating for aluminium substrates. It
is a thermosetting coating where the resin cross links after being stove at around 200 C (curing).
Alumex Group offers a range of powder colours and powder qualities with 10 years, 15 years and
20 years guarantees.

7.4.10 Wood Coating
The woodex process at Alumex Group offers a range of
innovative finishes such as wood, marble and granite to
aluminium profiles. Alumex Group pioneered the wood
coating products in Sri Lanka and has gained a significant
market share similar to the other segments. The process
combines a strong protective coating with a decorative
appearance whilst offering a real alternative to typical
architectural materials such as wood, marble or granite.
Woodex has high weather resistantance and requires minimum maintenance.
It is expected that the wood finished extrusions will substitute wooden doors, windows, etc. and
penetrate the local construction and interior designing to a great extent. Designs produced comprise
of teak, mahogany and rosewood finishes.
7.4.11 Polished Anodized Aluminium Extrusions
Polished anodized extrusions are a newly added products by Alumex Group. It is expected to capture
a substantial share of the market both locally and internationally. This process provides the normal
anodized product a more attractive and protective coating and it is expected to be successful in the
extrusion market. Alumex Group anticipates the product to be popular with overseas buyers in the
future.
7.4.12 Production Capacities and Utilised Capacities
Table 7-2: Production Capacity
Product /Plant
Capacity
(Per Annum)
Current Utilisation
Extrusion 12,000 metric tons 40%
Anodizing 5400 metric tons 40%
Powder Coating* 3600 metric tons 50%
Wood Effect 360 metric tons 50%
Die Manufacturing 2400 units 40%
Aluminium Melting 4800 metric tons 45%

*Includes the proposed state of the art Powder Coating Plant scheduled to start commercial production in
April/May 2014 with a capacity of 2400 metric tons.
7.5 Current Product and Service Portfolio
Alumex Group is renowned for its 26 years of industry expertise in design and development of
aluminium profiles. Alumex product innovations can be found in various industries from architectural
to engineering, including designs tailored to suit customer requirements.
7.5.1 Product Range
Alumex is the driving force in the local aluminium extrusion and fabrication market. As the
undisputed market leader in Sri Lanka, it has introduced many designs, concepts, products to suit the
local construction and engineering industry to propagate many applications. Thus, saving time,
money and becoming the most cost efficient service segments to the end users. Alumex Group also
enjoys a strong geographical presence in Sri Lanka through its island wide dealer network.



Figure 7-3: Market Structure
(i) Tested Aluminium Proprietary Systems Manufacturer Presence Under License
- AluK: Italy
- Fletcher Aluminium: New Zealand
(ii) Alumex Architectural Aluminium Extrusions/Window and Door Systems
Shop fronts, parttoning, sliding doors/windows (single, double, triple, etc), swing doors,
curtain walls, casement windows, turn and tlt, sliding folding, pivoted, euro groove, double
glazed, roller shuters, sky lights.
(iii) Industrial Aluminium Components
Ladders, lorry/bus bodies, rails, boat/ship buildings, show cases, hand rails, a/c diusers,
heat sinks, clamps and connectors, tower bolts, hinges, round tubes/bars, equal/unequal
angles, channels, solar structures, square/rectangular tubes, glazing beads, brackets, tles and
carpet edgings, door handles, hand rails, components for pantry cupboards and customised
designs to suit individual requirements.
7.6 Market Structure
Alumex Group carefully manages the aforementoned channels by carrying out various marketng
actvites such as, promotons, trainings, seminars, sponsorships and other services.
7.7 Market Segmentaton and Positoning
The total aluminium market in Sri Lanka can be segmented to the following three markets;
(i) Top end market - Aluminium Proprietary Window and Door Systems (i.e. AluK, Fletcher
Aluminium, SAPA,etc.)
Features:
- Expensive products
- Not readily available
- Cannot buy in smaller quanttes

- Longer delivery periods
- Larger product range and designs
- Use of quality accessories
- High replacement repair cost
- Designer accessories
(ii) Middle market - High quality aluminium extrusion designs and system (i.e. Gulf Extrusions,
Alumex Windows and Door systems)
Features:
- Expensive but value for money
- Readily available
- Can buy in smaller quantities
- Limited product range to suit the local and regional markets
- Use of quality accessories
- High quality with warranties
- Use of the best raw material in the world
- Trained craftsmen to handle fabrication work
- Reasonable repair/ replacement cost
(iii) Low end market - Average quality aluminium extrusion designs (i.e. Chinese, other local
suppliers etc.)
Features:
- Offers big discounts
- Low quality
- Low thickness profiles
- Readily available
- Use of Low quality accessories
- No warranties
- Short life span
7.8 Operational Markets
Alumex brand has achieved an established position in the top and the middle market segments in
Sri Lanka. It mainly operates in the top end and the middle market due to the comparatively healthy
margins in the segments. Alumex Group has its operations predominently in the domestic market
which covers modern house builders and commercial building market such as high rise
condominiums, office complexes and hotels. Moreover, in addition to the general dealer market,
Alumex Group operates in regional export markets such as Australia, Maldives, India and Bangladesh.
7.9 Services
Alumex Group has committed to provide customer service in an instantaneous manner and in a most
effective way to the Sri Lankan and overseas markets. It offers services from the point of designing to
the completion of installation providing shop drawings, proposing joinery systems with technical
advice, site inspection, and Installation guidance with training.


7.10 International Standards and Accreditations
Excellence in business operations of Alumex has been rewarded with the following accreditations by
leading global institutes. Being an ISO 9001:2008 certified aluminium extrusion manufacturer,
Alumex management and staff are commited to offer the best services to the customers provide with
innovate designs and develop new technologies to upgrade the Sri Lankan Aluminium Extrusion
Market.

All products of Alumex complies with British (BS), American (ASTM), European (EN) and Australia/
New Zealand (ANZ) standards.
Alloy: Designation alloy number EN AW 6063, 6060, 6082
- Alloy EN AW 6063: The most popular extrusion alloy used, which takes a good surface finish,
corrosion resistant and able to heat treat for strength.
- Alloy EN AW 6082: This is an alloy which has good tensile strength and extrudability. This is widely
used in automobile structures, structural engineering, ladders, furniture, etc.
Temper: T1, T4, T5, T6
Mechanical Properties for T5:
- Ultimate Tensile Strength 160 Mpa
- Elongation 7% (minimum)
Figure 7-4: Customer Service Offered by Alumex Group

Aluminium Extrusion Dimensions and Tolerances:
- BS EN 755 Part 01 to 09 (Former BS 1474)
- EN 12020 Part 01 and 02
Aluminium Extrusion Surface Treatments:
Anodizing Finish: Aluminium alloy anodic oxidation coating
- BS EN 12373-1:2001 Clause 6, 7, 8, 9 (BS: 6161) and EN ISO 2360:2003
- BS 3987 Clauses 2,3,5,6
Micron Thickness Range: From minimum 10 Microns to 25 Microns depending on the customers
requirements.
Powder coating Finish:
- BS 6496:1984 Clause: 10.4, 10.5, 10.6, 10.7 and 10.8
- EN ISO 2360:2003, 6272-1:2004, 1520:2001, 1519:2002, 2409:2004
- Minimum Film Thickness: 60 Microns
7.11 International Affiliations
Around 10% of architectural extrusions are imported due to the non-availability of Aluminium
Proprietary system in Sri Lanka. To overcome this competition and prevent such imports coming to
Sri Lanka, Alumex Group has entered in to licensing agreements with globally renowned
manufacturers of aluminium extrusions and accessories, AluK in Verona, Italy and Fletcher Aluminium
in Auckland, New Zealand. Alumex has manufactured high end Aluminium Proprietary Window and
Door Joinery Systems under license since year 2008. This strategy is now in full swing and it is
expected to increase its market share at least by another 10% by end of the year.


Aluminium Extrusion Dimensions and Tolerances:
- BS EN 755 Part 01 to 09 (Former BS 1474)
- EN 12020 Part 01 and 02
Aluminium Extrusion Surface Treatments:
Anodizing Finish: Aluminium alloy anodic oxidation coating
- BS EN 12373-1:2001 Clause 6, 7, 8, 9 (BS: 6161) and EN ISO 2360:2003
- BS 3987 Clauses 2,3,5,6
Micron Thickness Range: From minimum 10 Microns to 25 Microns depending on the customers
requirements.
Powder coating Finish:
- BS 6496:1984 Clause: 10.4, 10.5, 10.6, 10.7 and 10.8
- EN ISO 2360:2003, 6272-1:2004, 1520:2001, 1519:2002, 2409:2004
- Minimum Film Thickness: 60 Microns
7.11 International Affiliations
Around 10% of architectural extrusions are imported due to the non-availability of Aluminium
Proprietary system in Sri Lanka. To overcome this competition and prevent such imports coming to
Sri Lanka, Alumex Group has entered in to licensing agreements with globally renowned
manufacturers of aluminium extrusions and accessories, AluK in Verona, Italy and Fletcher Aluminium
in Auckland, New Zealand. Alumex has manufactured high end Aluminium Proprietary Window and
Door Joinery Systems under license since year 2008. This strategy is now in full swing and it is
expected to increase its market share at least by another 10% by end of the year.


Table 7-3: International Affiliation of Alumex Group
International License Description
Fletcher Aluminium New Zealand

Fletcher Aluminium is a subsidiary of Fletcher Group
which is one of the largest conglomerates in
New Zealand. Fletcher Aluminium proprietary systems
have been extensively used for more than 25 years in
Sri Lanka, Australasia and Far Eastern countries. Alumex
Group commenced manufacturing Fletcher proprietary
systems under license in Sri Lanka since 2011.

AluK- Italy

The AluK Group is a leader in the design and manufacture
of a range of sophisticated Aluminium building systems. It
is widely used in commercial applications and facades in
Europe and Middle East. Alumex Group is the exclusive
manufacturer of AluK systems under license in Sri Lanka
for the Asian market since 2008.

Mitsubishi Plastics Inc. Japan

Mitsubishi Plastic, Japan has been manufacturing Alpolic
Aluminium composite panels since 1971 and are the
worlds most popular brand. Avro Enterprises (Private)
Limited is the national distributors of Alpolic composite
materials in Sri Lanka.

DGL International Powder and
Thermal polymer Alloy Coatings -
New Zealand

Alumex Group is recognized as the exclusive approved
applicator in Sri Lanka for DGL International of New
Zealand powder coating range of products. It offers
coating warranties from 10 to 25 years based on the type
of product applied.

JOTUN MENA United Arab Emirates Alumex Group is Sri Lankas only approved applicator for
JOTUN powder coating range of products from Norwegian
based manufacturer and offers warranties up to 10 years.
JOTUN is the premier brand in Europe and Middle East.
These products have also been used in the worlds tallest
building, Burj Kalifa.


Table 7-3: International Affiliation of Alumex Group
International License Description
Fletcher Aluminium New Zealand

Fletcher Aluminium is a subsidiary of Fletcher Group
which is one of the largest conglomerates in
New Zealand. Fletcher Aluminium proprietary systems
have been extensively used for more than 25 years in
Sri Lanka, Australasia and Far Eastern countries. Alumex
Group commenced manufacturing Fletcher proprietary
systems under license in Sri Lanka since 2011.

AluK- Italy

The AluK Group is a leader in the design and manufacture
of a range of sophisticated Aluminium building systems. It
is widely used in commercial applications and facades in
Europe and Middle East. Alumex Group is the exclusive
manufacturer of AluK systems under license in Sri Lanka
for the Asian market since 2008.

Mitsubishi Plastics Inc. Japan

Mitsubishi Plastic, Japan has been manufacturing Alpolic
Aluminium composite panels since 1971 and are the
worlds most popular brand. Avro Enterprises (Private)
Limited is the national distributors of Alpolic composite
materials in Sri Lanka.

DGL International Powder and
Thermal polymer Alloy Coatings -
New Zealand

Alumex Group is recognized as the exclusive approved
applicator in Sri Lanka for DGL International of New
Zealand powder coating range of products. It offers
coating warranties from 10 to 25 years based on the type
of product applied.

JOTUN MENA United Arab Emirates Alumex Group is Sri Lankas only approved applicator for
JOTUN powder coating range of products from Norwegian
based manufacturer and offers warranties up to 10 years.
JOTUN is the premier brand in Europe and Middle East.
These products have also been used in the worlds tallest
building, Burj Kalifa.


7.12 Projects Undertaken
Alumex Group has provided aluminium fabricatons to various projects carried out within the
country. A list highlightng some of the commercial and residental projects carried out with the
involvement of Alumex Group are depicted below;
Table 7-4: Commercial and Industrial Projects
Year Project Fabricator
2013 Sethsiripaya Stage II Access Projects
2013 Colombo Harbour Extension Project Ashaie Glass
2013 Sports Ministry Building Ashaie Glass
2013 Bank Hill Sports Complex Ashaie Glass
2013 Nine Wells Hospital Smooth Aluminium
2013 Hambantota Port Projects Smooth Aluminium
2013 Kingsbury Hotel Alufab LTD
2013 Chaya Tranz Access Projects
2013 Cape Weligama Resort Access Projects
2013 Hemas Hospital- Thalawathugoda Access Projects
2013 Census Department Access Projects
2013 Ceylinco Life- Gampaha Access Projects
2013 Ceylinco Life- Kurunagala Access Projects
2013 Victoria Golf Course Access Projects
2013 Natonal Archives Central Engineering Consultancy Bureau
2013 Provincial Council - Haputhale Daya Constructon
2013 Utlity Building for NuwaraEliya P.C. Daya Constructon
2013 HNB- Jana, Negombo Instyle Aluminium
2013 DSI Oce/ Warehouse Tudawe Brothers
2013 Dialog Head Oce Tudawe Brothers
2013 Mercedes Showroom Ajax Engineering
2013 Railway Staton Kilinochchi Fine Aluminium
2012 Northshore College Access Projects
2012 Hotel Sea Shells Access Projects
2012 CECB Head Oce Access Projects
2012 Peoples Bank Head Oce Access Projects
2012 Southern Highway Toll Gates SEC/Alucare
2012 ITI- Phase 2 Alu V Glass
2012 Inland Revenue Building Ashaei Glass
2012 Ketarama Cricket Stadium Alucare (Private) Limited
2012 Pallekale Cricket Stadium Alucare (Private) Limited
2012 Green Building - Maldives Contech (Private) Limited
2011 Admin Complex Hambanthota SM Constructon



Table 7-5: Residential Projects
Year Project Fabricator
2013 Airport Garden Hotel Tudawe Engineering
2013 Blue Ocean Residencies Ashaie Glass
2013 Pearl City Hotel TCI
2013 Marine City LHP
2013 Anis House Access Projects
2013 Regeneration Housing Project Tudawe Brothers
2013 Lonci Project - Maldives Tangiglo
2013 Rehendi Project - Maldives FW Construction
2013 Ensor- Maldives Contech (Private) Limited
2012 Golden Rose Hotel Ashaie Glass
2012 Raufathuge Apartments - Maldives Contech (Private) Limited
2012 Kurigum - Maldives Contech (Private) Limited
2011 Rise Apartments - Australia Access Projects
2011 Jundaloupe Apartment - Australia Access Projects
2011 Karankage House - Maldives Contech (Private) Limited
2010 Supun Super Residencies LHP
2010 Sky Apartments - Australia Access Projects
2008 Summerland Apartments Mr. Aneez
2006 Nivasipura Project ICC
2006 Seagul Court Wellawatta Fine Aluminium

Table 7-6: Commercial and Industrial Projects

Colombo Port 1

Supun Arcade
Hemas Hospital

Peoples Bank Head Office

Jewellery Shop

SLINTEC - Homagama

The Kingsbury Hotel

Golden Rose
Ceylon Petroleum Pership Building

Marine City- Dehiwala

Hambantota Port View


Jewellery Shop

SLINTEC - Homagama

The Kingsbury Hotel

Golden Rose
Ceylon Petroleum Pership Building

Marine City- Dehiwala

Hambantota Port View


Table 7-7: International Projects

Green Building- Maldives

Joondalup-Australia

Raufathuge Project- Maldives

Residential Building- Perth, Australia


7.13 Consolidaton of Operatons

Figure 7-5: Alumex Group Structure as at April 01, 2011
Alumex Group was initially incorporated as Alumex (Private) Limited in November 1986. The
commercial operations began two years later, in 1988.
In November 2006, Alutec Anodizing and Machine Tools (Private) Limited (AAMT) was incorporated.
As of April 01, 2011, as depicted in Figure 7-5 above, Alumex Group comprised of 6 companies,
where AAMT was the ultimate parent company having direct/indirect ownerships in the group
companies. A minority stake of 6.5% of Alutec Extrusion (Private) Limited was held by outside parties,
comprising of few aluminium distributors.
With the consolidation strategy commenced in 2012, the ownership structure of the Alumex Group
was simplified by the following share transfers and amalgamations.


7.13 Consolidaton of Operatons

Figure 7-5: Alumex Group Structure as at April 01, 2011
Alumex Group was initially incorporated as Alumex (Private) Limited in November 1986. The
commercial operations began two years later, in 1988.
In November 2006, Alutec Anodizing and Machine Tools (Private) Limited (AAMT) was incorporated.
As of April 01, 2011, as depicted in Figure 7-5 above, Alumex Group comprised of 6 companies,
where AAMT was the ultimate parent company having direct/indirect ownerships in the group
companies. A minority stake of 6.5% of Alutec Extrusion (Private) Limited was held by outside parties,
comprising of few aluminium distributors.
With the consolidation strategy commenced in 2012, the ownership structure of the Alumex Group
was simplified by the following share transfers and amalgamations.


Step 1 Share Transfers
On January 17, 2012, all the intermediary shareholdings held by United Ceylon Insurance Company
and Alumex (Private) Limited were transferred to AAMT as follows;
Table 7-8: Consolidaton of Operatons
Descripton Transferor Transferee
Purchase
Consideraton
8.45% stake of Alutec
Extrusions (Private)
Limited
United Ceylon
Insurance
Company Limited

Alutec Anodizing and
MachineTools (Private)
Limited

Rs. 17,778,800.00
43.87% stake of Alumex
(Private) Limited
United Ceylon
Insurance
Company Limited
Rs. 175,055,723.85
60% stake of Alutec
Extrusions (Private)
Limited
Alumex (Private)
Limited
Rs. 126,240,000.00
99.99% stake of Avro
Enterprises (Private)
Limited
Alumex (Private)
Limited
Rs. 8,001,000.00
On March 02, 2012, 6.5% minority shareholding of Alutec Extrusions (Private) Limited was
transferred to AAMT by way of a share swap oering 1 share of AAMT for every 63 shares held in
Alutec Extrusions (Private) Limited at a consideraton of Rs. 13,734,500/-.
Subsequent to these transfers all Alumex Group companies were held as 100% owned subsidiaries of
AAMT.
Step 2 Amalgamatons
Proceeding further with the consolidaton process, the following amalgamatons were carried out;
On March 22, 2012, United Ceylon Insurance Company Limited was amalgamated with its parent
company, AAMT, resultng in the surviving entty being AAMT and United Ceylon Insurance
Company Limited losing its corporate existence.
On March 30, 2012 Alutec Extrusions (Private) Limited was amalgamated with Alumex (Private)
Limited (both being 100% owned subsidiaries of AAMT), resultng in the surviving entty being
Alutec Extrusions (Private) Limited and Alumex (Private) Limited losing its corporate existence.
Step 3 Change of Corporate Name
As part of aligning the Groups brand name Alumex to its legal corporate entty, AAMT was
renamed as Alumex (Private) Limited on November 22, 2012. Alumex (Private) Limited was
subsequently re-registered as Alumex Limited on February 22, 2013.
Step 4 Final Amalgamaton
Completng the consolidaton process, Alutec Extrusions (Private) Limited, a 100% owned subsidiary
of Alumex Limited (former AAMT) at the tme of amalgamaton, was amalgamated with Alumex
Limited on March 31, 2013, resultng in the surviving entty being Alumex Limited and Alutec
Extrusions (Private) Limited losing its corporate existence.


The consolidation of operations resulted in a much simpler Group structure as follows;

Alumex Limited currently holds 100% stakes in Alco Industries (Private) Limited and Avro Enterprises
(Private) Limited.
7.14 Core Competencies of Alumex Group
(i) Exclusive Designs
Alumex Group has over 700 profile designs inclusive of Windows (side hung, top hung, turn and tilt,
double glazed, slidingsingle/multi track etc.), doors (swing, sliding, sliding/folding), curtain walls,
partitions, shop fronts, solar panels/structures and components for various industries, air
conditioning, engineering and transportation. Additionally, these architectural designs can be used
for single storied houses and multi storied commercial high rise buildings in any weather conditions.
Many of the latest exclusive designs developed are registered under Industrial Designs at the
Registrar of Companies. Alumex Group caters to the Special Designs market segment as well. They
have developed over 250 exclusive designs for the specialized manufacturers of various components
for both local and export markets.
The Group has the ability to design and manufacture aluminium extruded profiles up to 220mm CCD.
Alumex Group also provides different types of finishes (wood finish, polished anodizing, powder
coating, anodizing, and mill finished) to support selection of choices for architects, consultants and
engineers.
(ii) Modern and Advanced Technology
A key successful factor that has driven Alumex Group to procure a successful growth over the years is
its technical competency and state-of-the-art technology. Alumex Group is equipped with modern
extrusion machinery, anodizing facilities, powder coating, foundry shop equipped with a
spectrometer to produce high quality alloyed billets, CNC wire cut/spark erosion machinery for die
making and correction, surface polishing facilities and a wood effect sublimation plant.
(iii) Uniquely Positioned Die Design and Manufacturing
Alumex Group is the only aluminium extruder in Sri Lanka with the ability to design and manufacture
extrusion dies that caters to all required surface finishes /designs and different needs of the
customers.

(iv) Support and Services
Alumex Group provides shop drawings with recommended Alumex designs to any potential client
who wants to use aluminium extrusions for their requirement, on-the-job and off-the job training
facilities and free of charge site visits for technical assistance. Additionally, testing of products at site
and troubleshooting will be arranged as requested by the customer and this facility is exclusively
available for Sri Lankan customers. Alumex Group also provides warranties up to 10 years against the
manufacturing defects.
(v) Proprietary Rights
Alumex Group has obtained the rights to manufacture high quality, exclusive, state of the art window
and door joinery system of AluK in Verona, Italy and Fletcher Aluminium in Auckland, New Zealand,
under licenses for commercial and architectural applications such as curtain walls/ structural facades
projects in Sri Lanka and Asia.
(vi) Competent Staff
The technical expertise, industrial experience of over 26 years and the market leadership of the
Alumex Group are distinct advantages to meet its objectives successfully. The Alumex Group has the
required infrastructure and an able talented team of Sri Lankan professionals, technicians and
resource personnel who can successfully overcome any challenges they face in the market.
(vii) Island Wide Distribution Network
Alumex Group has an island wide distribution network with 57 dealers and 5 Alumex distribution
centres in Makola, Kotte, Jaffna, Anuradhapura and Ratnapura to provide dealers easy access to its
range of products. Further, Alumex is planning to add 4 more distribution centres to their network in
the near future.


Figure 7-6: Alumex Groups Distribution Network in Sri Lanka

Figure 7-6: Alumex Groups Distribution Network in Sri Lanka

7.15 Accolades and Awards
Alumex Group has been recognised for the commitment towards innovaton and providing value
added aluminium solutons.
Year 2013
Mass Lanka (Top Twenty) Awards 2013
Awarded by Lakdiriya Development Foundaton in recogniton of the contributon made to the
constructon industry with innovatve products and generaton of employment.
Year 2012
E-Swabhimani Awards 2012
Awarded by ICT Agency of Sri Lanka in appreciaton of the services made to e-Business and
Commerce.
Best Display Stalls in Exhibitons
Best Display on Aluminum Products at the Constructon Expo 2012.
Year 2011
Most Innovatve Trade Stall
Merit Award in the Architect Exhibiton 2011.
Appreciaton Awards for Sponsorships awarded by
- Sri Lanka Insttute of Architects
- Natonal Constructon Associaton of Sri Lanka
- Sri Lanka Constructors Associaton
- Central Engineering Consultancy Bureau (CECB) Engineers Associaton
7.16 Human Resources
Alumex Group has placed a prime importance on its human resource management functon. The
Human Resource (HR) functon is headed by Group Manager HR and supported by a team of
executves and support sta. The HR policies of the Group are built with a view of recruitng the right
person for the right job, equipping the individual with the appropriate tools and skills for optmum
performance whilst rewarding and recognizing their excellence.
All recruitments are done afer a careful assessment and medical screening. All new members to the
Alumex Group are given a proper inducton, which explains the Company policies, procedures,
operatonal environment, ethics and working standards of the Company. A high level of loyalty and
integrity are considered to be essental in conductng business actvites and are strongly embedded
into the corporate culture of Alumex Group.
Performance evaluaton of Alumex sta is carried out through periodic reviews which give a
comprehensive feedback on their performance matched against set targets and realized levels of
achievements. Alumex Group has a well-established reward structure to recognize the achievements
of its employees who portray excellence during their employment.


Alumex Group places a high importance in training the sta which requires development of skills and
competences that have been the springboard in enhancing performance. The training calendar is
designed annually by the HR division, using the training and development requirements of each
division and matched against the projects in hand and future projects envisaged, with the skills and
knowledge required for optmum performance. In additon, team members are given the opportunity
to actvely partcipate in relevant external seminars, workshops and training programmes both local
and overseas to sharpen their respectve skills.
Being a knowledge based entty, Alumex Group contnuously strives to contribute to creatng a
knowledge gaining and sharing culture by encouraging team members to pursue higher studies and
professional qualicatons, which the Company sponsors, as it adds value to the pool of knowledge
available within the Company for it to draw upon. Alumex Group periodically reviews sta welfare
services in order to uplif the quality of work life of its human resource. The dedicated rst aid
treatment centre, death donaton scheme, employee loan schemes such as distress loan, nutritous
meals at a subsidised rate and donaton of school items to the children of the employees are some of
the welfare facilites available to the employees and their families. Also Company believes on
employee engagement and therefore family get-togethers, pirith ceremonies and sta cricket
matches are organised annually.
As at December 31, 2013 the total sta strength of Alumex Group amounted to 415 employees under
the following categorisaton.

Alumex currently has a branch union of Free Trade Zone and General Services Employee Union and
there are no signicant agreements entered into between the Company and labour union.
7.17 Corporate Social Responsibility
Responsibility and commitment towards community remain an integral feature within the Corporate
Social Responsibility (CSR) framework of Alumex Group.
Health and Safety Policy
Alumex is commited to providing and maintaining a safe and healthy workplace for all employees
and visitors and to do all that is reasonably practcal to safeguard them from physical injury, re and
work related health problems and to comply with the appropriate safety standards and relevant
legislaton.

Table 7-9: Human Resources of Alumex Group
Sta Category Number of Employees
Management and Professional 60
Operatonal 150
Technical 14
Technical Ocers/Clerical 79
Unskilled Workforce 112
Total 415


Alumex Group places a high importance in training the sta which requires development of skills and
competences that have been the springboard in enhancing performance. The training calendar is
designed annually by the HR division, using the training and development requirements of each
division and matched against the projects in hand and future projects envisaged, with the skills and
knowledge required for optmum performance. In additon, team members are given the opportunity
to actvely partcipate in relevant external seminars, workshops and training programmes both local
and overseas to sharpen their respectve skills.
Being a knowledge based entty, Alumex Group contnuously strives to contribute to creatng a
knowledge gaining and sharing culture by encouraging team members to pursue higher studies and
professional qualicatons, which the Company sponsors, as it adds value to the pool of knowledge
available within the Company for it to draw upon. Alumex Group periodically reviews sta welfare
services in order to uplif the quality of work life of its human resource. The dedicated rst aid
treatment centre, death donaton scheme, employee loan schemes such as distress loan, nutritous
meals at a subsidised rate and donaton of school items to the children of the employees are some of
the welfare facilites available to the employees and their families. Also Company believes on
employee engagement and therefore family get-togethers, pirith ceremonies and sta cricket
matches are organised annually.
As at December 31, 2013 the total sta strength of Alumex Group amounted to 415 employees under
the following categorisaton.

Alumex currently has a branch union of Free Trade Zone and General Services Employee Union and
there are no signicant agreements entered into between the Company and labour union.
7.17 Corporate Social Responsibility
Responsibility and commitment towards community remain an integral feature within the Corporate
Social Responsibility (CSR) framework of Alumex Group.
Health and Safety Policy
Alumex is commited to providing and maintaining a safe and healthy workplace for all employees
and visitors and to do all that is reasonably practcal to safeguard them from physical injury, re and
work related health problems and to comply with the appropriate safety standards and relevant
legislaton.

Table 7-9: Human Resources of Alumex Group
Sta Category Number of Employees
Management and Professional 60
Operatonal 150
Technical 14
Technical Ocers/Clerical 79
Unskilled Workforce 112
Total 415


Environmental Policy
Alumex Limited is committed to providing a quality product through systems and processes that
ensure a safe and healthy workplace for employees and minimises the potential impact on the
environment. The Company operates in compliance with all relevant environmental standards and
relevant legislation and strives to use pollution prevention and environmental best practices.

Quality Management Systems (QMS)
All QMS functions at Alumex Group are based on ISO 9001: 2008 Quality Management Systems. It
manufactures its products in line with national and international product certification schemes.
Sustainability Policy
Alumex Limited is committed to promoting sustainability. The concern for the environment and
promoting a broader sustainability agenda are integral to the professional activities and the
management of the Company. Alumex Limited aims to follow and to promote good sustainability
practices, to reduce the environmental impacts of all activities and to help clients and partners to do
the same.
Alumex Sustainability Policy is based upon the following principles:
- To comply with, and exceed where practicable, all applicable legislation, regulations and codes of
practice
- To integrate sustainability considerations into all our business decisions
- To ensure that all staff are fully aware of Sustainability Policy and are committed to
implementing and improving it
- To make clients and suppliers aware of its Sustainability Policy, and encourage them to adopt
sound sustainable management practices
- To review, annually report, and to continually strive to improve sustainability performance
Some of the on-going CSR projects are:
- Distribution of School Books
Alumex Group provides stationery, school books and bags to children of all staff members in
December every year since 2000.
- Distribution of white canes for Deaf and Blind Societies
Alumex Group distributes 1,000 white canes per annum, turned out at its plant, for people at
Deaf and Blind Schools/Societies since 2012.
- Welfare development activities in collaboration with temples and Government bodies in the
area
In addition, it engages in providing training as listed below. There are different types of programmes
that the Alumex Group conducts for different customer segments.
- Training School
Alumex Group conducts fabricator training courses in its fully equipped training school in order to
propagate the usage of aluminium in building construction work. These courses are conducted by
well experienced staff who are fully conversant with the trade, and are carried out almost free of
charge to help the industry in Sri Lanka.

There are three types of Fabricator courses/ programmes:
- For school leavers (18-25 years), conducted in collaboration with National Apprentice and
Industrial Training Authority of Sri Lanka (NAITA). This is a national certificate level program.
- For those who are in the trade and wish to enhance their knowledge on estimation,
fabrications, identification of profiles, correct usage of profiles etc. Usually this course is
conducted on Saturdays and Sundays over four weekends at the factory premises in Sri Lanka.
A nominal fee is being charged to cover the administrative costs.
- Government and non-Governmental Institutional training in Sri Lanka for the stakeholders in
the industry according to the requests received. Two to three day programmes are being
conducted Island wide free of charge.
Alumex Group has trained over 10,000 fabricators/technocrats since 1998. Moreover, it has
conducted island wide workshops during the last 15 years and at present they have exclusively signed
up with Vocational Training Institute (VTI) to conduct the National Vocational Qualification (NVQ)
Level 3 Fabricator Training Programme in five centres in Northern Province (Jaffna, Vavuniya,
Killinochchi, Mannar and Mullativu), Galle, Ratnapura, Kurunegala and Ratmalana.
Alumex Group is actively engaged in developing NVQ Level 04 Fabricator Advancement Programme
with VTA at present.
7.18 Future Direction of Alumex Group
Local Markets
According to the 2014 budget proposal, planned infrastructure development projects and private
sector investments including BOI approved projects in Sri Lanka, a substantial amount of funds are
expected to come in to the building and construction related industry over the next five years. A
substantial number of commercial buildings constructed now extensively use aluminium extrusions
for their interior and exterior walls, windows, doors and partitioning, etc. It can be predicted that the
aluminium extrusion market will grow above the expected GDP growth rate during the next five
years. By focusing on these developments, Alumex Group has set its objectives and strategies to
meet this demand over the next five years.
Apart from the above, the recent boom in property development, people are moving away from
using timber and converting to use the only sustainable green product, aluminium. The usage of
aluminium in the construction industry as well as in modern interior decorating has increased
overtime. The use of aluminium in building construction has been recommended by most architects
as modern techniques could be applied at a lower cost while giving existing buildings a modern
appearance. With the government initiative to promote tourism industry and target to achieve
2.5 million tourist arrivals by 2016 and expected economic growth rate of 7.5% to 8% during the
period of 2014 to 2016, will boost the requirement for aluminium extrusions and components to a
greater extent. This will utilise the balance production capacity of 60% available with the Alumex
Group in time to come without major capital infusion.


Environmental Policy
Alumex Limited is committed to providing a quality product through systems and processes that
ensure a safe and healthy workplace for employees and minimises the potential impact on the
environment. The Company operates in compliance with all relevant environmental standards and
relevant legislation and strives to use pollution prevention and environmental best practices.

Quality Management Systems (QMS)
All QMS functions at Alumex Group are based on ISO 9001: 2008 Quality Management Systems. It
manufactures its products in line with national and international product certification schemes.
Sustainability Policy
Alumex Limited is committed to promoting sustainability. The concern for the environment and
promoting a broader sustainability agenda are integral to the professional activities and the
management of the Company. Alumex Limited aims to follow and to promote good sustainability
practices, to reduce the environmental impacts of all activities and to help clients and partners to do
the same.
Alumex Sustainability Policy is based upon the following principles:
- To comply with, and exceed where practicable, all applicable legislation, regulations and codes of
practice
- To integrate sustainability considerations into all our business decisions
- To ensure that all staff are fully aware of Sustainability Policy and are committed to
implementing and improving it
- To make clients and suppliers aware of its Sustainability Policy, and encourage them to adopt
sound sustainable management practices
- To review, annually report, and to continually strive to improve sustainability performance
Some of the on-going CSR projects are:
- Distribution of School Books
Alumex Group provides stationery, school books and bags to children of all staff members in
December every year since 2000.
- Distribution of white canes for Deaf and Blind Societies
Alumex Group distributes 1,000 white canes per annum, turned out at its plant, for people at
Deaf and Blind Schools/Societies since 2012.
- Welfare development activities in collaboration with temples and Government bodies in the
area
In addition, it engages in providing training as listed below. There are different types of programmes
that the Alumex Group conducts for different customer segments.
- Training School
Alumex Group conducts fabricator training courses in its fully equipped training school in order to
propagate the usage of aluminium in building construction work. These courses are conducted by
well experienced staff who are fully conversant with the trade, and are carried out almost free of
charge to help the industry in Sri Lanka.

There are three types of Fabricator courses/ programmes:
- For school leavers (18-25 years), conducted in collaboration with National Apprentice and
Industrial Training Authority of Sri Lanka (NAITA). This is a national certificate level program.
- For those who are in the trade and wish to enhance their knowledge on estimation,
fabrications, identification of profiles, correct usage of profiles etc. Usually this course is
conducted on Saturdays and Sundays over four weekends at the factory premises in Sri Lanka.
A nominal fee is being charged to cover the administrative costs.
- Government and non-Governmental Institutional training in Sri Lanka for the stakeholders in
the industry according to the requests received. Two to three day programmes are being
conducted Island wide free of charge.
Alumex Group has trained over 10,000 fabricators/technocrats since 1998. Moreover, it has
conducted island wide workshops during the last 15 years and at present they have exclusively signed
up with Vocational Training Institute (VTI) to conduct the National Vocational Qualification (NVQ)
Level 3 Fabricator Training Programme in five centres in Northern Province (Jaffna, Vavuniya,
Killinochchi, Mannar and Mullativu), Galle, Ratnapura, Kurunegala and Ratmalana.
Alumex Group is actively engaged in developing NVQ Level 04 Fabricator Advancement Programme
with VTA at present.
7.18 Future Direction of Alumex Group
Local Markets
According to the 2014 budget proposal, planned infrastructure development projects and private
sector investments including BOI approved projects in Sri Lanka, a substantial amount of funds are
expected to come in to the building and construction related industry over the next five years. A
substantial number of commercial buildings constructed now extensively use aluminium extrusions
for their interior and exterior walls, windows, doors and partitioning, etc. It can be predicted that the
aluminium extrusion market will grow above the expected GDP growth rate during the next five
years. By focusing on these developments, Alumex Group has set its objectives and strategies to
meet this demand over the next five years.
Apart from the above, the recent boom in property development, people are moving away from
using timber and converting to use the only sustainable green product, aluminium. The usage of
aluminium in the construction industry as well as in modern interior decorating has increased
overtime. The use of aluminium in building construction has been recommended by most architects
as modern techniques could be applied at a lower cost while giving existing buildings a modern
appearance. With the government initiative to promote tourism industry and target to achieve
2.5 million tourist arrivals by 2016 and expected economic growth rate of 7.5% to 8% during the
period of 2014 to 2016, will boost the requirement for aluminium extrusions and components to a
greater extent. This will utilise the balance production capacity of 60% available with the Alumex
Group in time to come without major capital infusion.


(i) Existing Products and Existing Markets
With the available products, Alumex Group plans to further penetrate in to the existing market and it
is considered to be the most economical way of increasing sales volume. It intends to increase the
distribution, by appointing new dealers and opening warehouses as part of the marketing objectives.
Alumex Group identifies that it is vital to train fabricators to increase the usage of architectural
profiles in many instances where hardware profiles (pipes and angles) are being used in doors and
windows due to lack of knowledge about the usage of the architectural profiles by the fabricators.
(ii) New Product Development
The Company intends to invest further on new product developments in order to address customer
requirements, environments and the standards set by regulators such as Institute for Construction
Training and Development (ICTAD) and Sri Lanka Standards Institution (SLS).
Some of the new designs to be introduced to the Alumex Window and Door System are as follows.
- Sliding series with better water drain system, safety, with provision for mosquito net, and option
for double glaze
- New casement series with double glaze option, provision for mosquito net
- Swing door series with option for double glaze and provision for 12mm glaze
- Products to meet the requirement of Industrial and Aluminium Component markets and new value
added markets namely;
Solar panels
Brackets
Hinges
Heat sinks
Rollers
Ladders
Rods
Component to support cladding market
Advertising industry
(iii) Alumex Tested System
Alumex Group plans to introduce an internationally recognised tested windows and door system
which will be,
- tested against water penetration and air tightness
- tested against wind pressure and
- used specially designed accessories for the system.
It has become vital that Alumex introduces an in-house tested system in addition to its two world
renowned brands of aluminium products, AluK from Italy and Fletcher Aluminium from New
Zealand. Tested systems will gain additional strength by obtaining accreditations such as
Qualicoat/Qualanode in additions to SLS certification to get international recognition and attention.


(iv) Alumex Concept and Design Centres (ACs and DCs)
With end users rapidly moving from timber to aluminium, it is necessary to display all the latest
Alumex fabricated product samples with recommended accessories in one location to give access to
the customers to touch and feel the final product they intend to use. Therefore it is proposed to
establish minimum of 10 such state of the art display centres in selected major cities of the country.
At present, customers have little knowledge about selecting a suitable design and options available
to them with aluminium windows and doors.
Additionally, it is suggested to have a support service to customers through this design centre to
provide shop drawings, give details of fabrications, BOQs and recommend fabricators.
Some of the areas selected for the proposed design centres are Nawala, Kandy, Matara, Nittambuwa,
Galle, Jaffna, Ratnapura, Batticaloa, Negombo and Kurunagala.
Export Markets
With this strategic direction to manufacture Aluminium Proprietary system designs under license,
Alumex Group expects to enter the global aluminium extrusion market. Alumex Group has received
orders from Australia, Republic of Maldives, Bangladesh and India to export the products.
In 2012, Alumex Group initiated contacts with two aluminium profile distributors in Cochin and
Calicut in India. The two dealers enabled Alumex to establish direct contacts with the Architects and
Project Managers to specify the Alumex range of products in the projects and was successful in
securing the first wood finish architectural profile order for 10 metric Tons in 2013.
The main objective is to move in to the overseas markets in Indian subcontinent and further
penetrate in to the South Indian markets and Maldives to utilise the excess production capacity and
increase the sales volume in order to reduce the cost of production and thereby increase the
turnover and the margins of the Alumex Group.
7.19 Major Assumptions Relating to Future Plans of Alumex Group
- Alumex Group expects the macroeconomic environment of the country to be favourable to its
businesses. The Company expects GoSL as well as private sector investments in infrastructure
development sector to grow at an increasing rate with the accelerated economic development of
the country.
- Alumex Group expects the demand for construction and property development sector to
continue to grow in the future.
- Alumex Group expects the GoSL to encourage investments in the leisure and hotel industry.
- Alumex Group expects the global aluminium prices to remain favourable and Alumex Group will
be able to pass any price increase to the customers.
- Alumex Group expects to penetrate the regional markets through dealerships.

(i) Existing Products and Existing Markets
With the available products, Alumex Group plans to further penetrate in to the existing market and it
is considered to be the most economical way of increasing sales volume. It intends to increase the
distribution, by appointing new dealers and opening warehouses as part of the marketing objectives.
Alumex Group identifies that it is vital to train fabricators to increase the usage of architectural
profiles in many instances where hardware profiles (pipes and angles) are being used in doors and
windows due to lack of knowledge about the usage of the architectural profiles by the fabricators.
(ii) New Product Development
The Company intends to invest further on new product developments in order to address customer
requirements, environments and the standards set by regulators such as Institute for Construction
Training and Development (ICTAD) and Sri Lanka Standards Institution (SLS).
Some of the new designs to be introduced to the Alumex Window and Door System are as follows.
- Sliding series with better water drain system, safety, with provision for mosquito net, and option
for double glaze
- New casement series with double glaze option, provision for mosquito net
- Swing door series with option for double glaze and provision for 12mm glaze
- Products to meet the requirement of Industrial and Aluminium Component markets and new value
added markets namely;
Solar panels
Brackets
Hinges
Heat sinks
Rollers
Ladders
Rods
Component to support cladding market
Advertising industry
(iii) Alumex Tested System
Alumex Group plans to introduce an internationally recognised tested windows and door system
which will be,
- tested against water penetration and air tightness
- tested against wind pressure and
- used specially designed accessories for the system.
It has become vital that Alumex introduces an in-house tested system in addition to its two world
renowned brands of aluminium products, AluK from Italy and Fletcher Aluminium from New
Zealand. Tested systems will gain additional strength by obtaining accreditations such as
Qualicoat/Qualanode in additions to SLS certification to get international recognition and attention.


(iv) Alumex Concept and Design Centres (ACs and DCs)
With end users rapidly moving from timber to aluminium, it is necessary to display all the latest
Alumex fabricated product samples with recommended accessories in one location to give access to
the customers to touch and feel the final product they intend to use. Therefore it is proposed to
establish minimum of 10 such state of the art display centres in selected major cities of the country.
At present, customers have little knowledge about selecting a suitable design and options available
to them with aluminium windows and doors.
Additionally, it is suggested to have a support service to customers through this design centre to
provide shop drawings, give details of fabrications, BOQs and recommend fabricators.
Some of the areas selected for the proposed design centres are Nawala, Kandy, Matara, Nittambuwa,
Galle, Jaffna, Ratnapura, Batticaloa, Negombo and Kurunagala.
Export Markets
With this strategic direction to manufacture Aluminium Proprietary system designs under license,
Alumex Group expects to enter the global aluminium extrusion market. Alumex Group has received
orders from Australia, Republic of Maldives, Bangladesh and India to export the products.
In 2012, Alumex Group initiated contacts with two aluminium profile distributors in Cochin and
Calicut in India. The two dealers enabled Alumex to establish direct contacts with the Architects and
Project Managers to specify the Alumex range of products in the projects and was successful in
securing the first wood finish architectural profile order for 10 metric Tons in 2013.
The main objective is to move in to the overseas markets in Indian subcontinent and further
penetrate in to the South Indian markets and Maldives to utilise the excess production capacity and
increase the sales volume in order to reduce the cost of production and thereby increase the
turnover and the margins of the Alumex Group.
7.19 Major Assumptions Relating to Future Plans of Alumex Group
- Alumex Group expects the macroeconomic environment of the country to be favourable to its
businesses. The Company expects GoSL as well as private sector investments in infrastructure
development sector to grow at an increasing rate with the accelerated economic development of
the country.
- Alumex Group expects the demand for construction and property development sector to
continue to grow in the future.
- Alumex Group expects the GoSL to encourage investments in the leisure and hotel industry.
- Alumex Group expects the global aluminium prices to remain favourable and Alumex Group will
be able to pass any price increase to the customers.
- Alumex Group expects to penetrate the regional markets through dealerships.

8.0 CORPORATE STRUCTURE

8.1 The Board of Directors of Alumex Limited
As at the date of the Prospectus, the Board of Directors of Alumex Limited comprised of nine (09)
Directors consistng of three (03) Executve Directors and six (06) Non-Executve Directors. From and
out of the six (06) Non-Executve Directors, two (02) are Independent Non-Executve Directors.
Additonally, there are two (02) Alternate Directors representng two (02) Non-Executve Directors.
Table 8-1: Board of Directors of Alumex Limited
Name Address
Mr. Abeyakumar Mohan Pandithage No. 119, Kynsey Road, Colombo 08
Mr. Rohan Palitha Peris No. 5A, Wimala Estate Road, Gangodawila, Nugegoda
Mr. Dediwela Widanaarachchilage
Pramuk Nishantha Dediwela
No. 259/4B, Hospital Road, Kiribathgoda
Mr. Sarath Clement Ganegoda No. 28, Campbell Place, Dehiwela
Mr. Ranil Prasad Pathirana No. 243/5, Lake Gardens, Lake Drive, Rajagiriya
Mr. Ali Asghar Akbarally No. 90, Layards Road, Colombo 05
Mr. Huzaifa Hamzaally Abdulhusein No. 28, 27
th
Lane, Colombo 03
Dr. Harsha Cabral, PC No. 114/8, Horton Place, Colombo 07
Mr. Somasiri Munaweera No. 113/9, Sri Soratha Mawatha, Gangodawila, Nugegoda

Table 8-2: Alternate Directors of Alumex Limited
Name Address
(Alternate to Mr. R. P. Pathirana)
No. 61, Barnes Place, Colombo 07
(Alternate to Mr. A. A. Akbarally)
No. 16/15, Albert Crescent, Colombo 07
8.2 Proles of the Board of Directors
Mr. Abeyakumar Mohan Pandithage Chairman/Chief Executve
Mr. Pandithage was appointed to the Board of Alumex Limited in November 2010. He joined Hayleys
Group in 1969 and serves as the Chairman and Chief Executve of Hayleys PLC since July 2009. He is
the Honorary Consul of the United Mexican States (Mexico) to Sri Lanka.
Mr. Pandithage is a Fellow of the Chartered Insttute of Logistcs and Transport and a Member of the
Presidental Commitee on Maritme Maters. He is also a Commitee Member of the Ceylon
Chamber of Commerce, Council Member of the Employers Federaton of Ceylon and a Member of
the Monetary Policy Consultatve Commitee of the Central Bank of Sri Lanka. He serves as a Board
Director of Diesel & Motor Engineering Company PLC, the Delmege Group and Sri Lanka Port
Management and Consultancy Services Limited and is on the Boards of several other local and
foreign companies.


8.0 CORPORATE STRUCTURE

8.1 The Board of Directors of Alumex Limited
As at the date of the Prospectus, the Board of Directors of Alumex Limited comprised of nine (09)
Directors consistng of three (03) Executve Directors and six (06) Non-Executve Directors. From and
out of the six (06) Non-Executve Directors, two (02) are Independent Non-Executve Directors.
Additonally, there are two (02) Alternate Directors representng two (02) Non-Executve Directors.
Table 8-1: Board of Directors of Alumex Limited
Name Address
Mr. Abeyakumar Mohan Pandithage No. 119, Kynsey Road, Colombo 08
Mr. Rohan Palitha Peris No. 5A, Wimala Estate Road, Gangodawila, Nugegoda
No. 259/4B, Hospital Road, Kiribathgoda
Mr. Sarath Clement Ganegoda No. 28, Campbell Place, Dehiwela
Mr. Ranil Prasad Pathirana No. 243/5, Lake Gardens, Lake Drive, Rajagiriya
Mr. Ali Asghar Akbarally No. 90, Layards Road, Colombo 05
Mr. Huzaifa Hamzaally Abdulhusein No. 28, 27
th
Lane, Colombo 03
Dr. Harsha Cabral, PC No. 114/8, Horton Place, Colombo 07
Mr. Somasiri Munaweera No. 113/9, Sri Soratha Mawatha, Gangodawila, Nugegoda

Table 8-2: Alternate Directors of Alumex Limited
Name Address
No. 61, Barnes Place, Colombo 07
No. 16/15, Albert Crescent, Colombo 07
8.2 Proles of the Board of Directors
Mr. Pandithage was appointed to the Board of Alumex Limited in November 2010. He joined Hayleys
Group in 1969 and serves as the Chairman and Chief Executve of Hayleys PLC since July 2009. He is
the Honorary Consul of the United Mexican States (Mexico) to Sri Lanka.
Mr. Pandithage is a Fellow of the Chartered Insttute of Logistcs and Transport and a Member of the
Presidental Commitee on Maritme Maters. He is also a Commitee Member of the Ceylon
Chamber of Commerce, Council Member of the Employers Federaton of Ceylon and a Member of
the Monetary Policy Consultatve Commitee of the Central Bank of Sri Lanka. He serves as a Board
Director of Diesel & Motor Engineering Company PLC, the Delmege Group and Sri Lanka Port
Management and Consultancy Services Limited and is on the Boards of several other local and
foreign companies.


Mr. Rohan Palitha Peris Managing Director
Mr. Peris joined Alumex Limited in May 2012 as its Managing Director. He has over 28 years of
experience in manufacturing at Haycarb PLC where he functioned as the Director with overall
responsibility for both local and overseas manufacturing operations. Mr. Peris holds a B.Sc. Honours
Degree in Industrial Engineering from Hatfield Polytechnic in the UK.
Mr. Dediwela joined Alumex Group in January 1989 and has over 25 years of experience covering the
fields of marketing and sales, material and logistics, finance, production and administration/human
resources. He was appointed as an Executive Director of the Alumex Limited and its subsidiaries, Alco
Industries (Private) Limited, Avro Enterprises (Private) Limited, in December 2010.
Mr. Dediwela is a Chartered Marketer/Financial Economist and holds a Master of Arts in Financial
Economics (University of Colombo), Master of Business Administration (University of Southern
Queensland), Post-Graduate Diploma in Business and Financial Administration (Institute of Chartered
Accountants Sri Lanka/Cranfield - UK), Post-Graduate Diploma in Marketing (Chartered Institute of
Marketing - UK) and Diploma in Management (Open University of Sri Lanka).
Mr. Dediwela is a member of the Advisory Committee on Light Engineering of the Sri Lanka Export
Development Board and holds memberships of the Chartered Institute of Marketing (UK) and
Sri Lanka Economic Association.
Mr. Sarath Clement Ganegoda Non-Executive Director
Mr. Ganegoda was appointed to the Board of Alumex Limited in November 2010. He has worked for
Hayleys Group and Diesel and Motor Engineering Company PLC between 1987 and 2002, ultimately
as an Executive Director of the latter. Subsequently, he held several senior management positions in
large private sector entities in Sri Lanka and overseas. He re-joined Hayleys Group in March 2007 and
was appointed to the Group Management Committee in July 2007.
Mr. Ganegoda is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka and a
Member of Institute of Certified Management Accountants of Australia. He holds a Master of
Business Administration from the Postgraduate Institute of Management, University of
Sri Jayewardenepura.
Mr. Ranil Prasad Pathirana Non-Executive Director
Mr. Pathirana was appointed to the Board of Alumex Limited in November 2010. He is the Finance
Director of the Hirdaramani Group and is a Director of Hirdaramani Apparel Holdings (Private)
Limited, Hirdaramani Leisure Holdings (Private) Limited and Hirdaramani Investments Holding
(Private) Limited which are the holding companies of the Hirdaramani Group. He is also a Director of
Star Packaging (Private) Limited and Windforce (Private) Limited and a Non-Executive Director of
Hayleys PLC, Sampath Bank PLC and Nirmalapura Wind Power (Private) Limited.
Mr. Pathirana is a Fellow Member of the Chartered Institute of Management Accountants, UK
(FCMA - UK) and holds a Bachelor of Commerce Degree from the University of Sri Jayewardenepura.
Mr. Ali Asghar Akbarally Non-Executive Director
Mr. Akbarally was appointed to the Board of Alumex Limited in November 2010. He serves as an
Executive Director of the Akbar Brothers Group of Companies for the past 32 years. He is the past
president of the Rotary Club of Colombo. Mr. Akbarally holds a Degree in Industrial Engineering from
the University of California and is a Fellow of the Institute of Certified Professional Managers.

Mr. Abdulhusein was appointed to the Board of Alumex Limited in November 2010 as an Alternate
Director and appointed to the Board as a Director in November 2011. With over 30 years of business
experience, he is an entrepreneur and investor in the corporate sector in Sri Lanka and India.
Mr. Abdulhusein is the Managing Director of Star Packaging (Private) Limited and the
Chairman/Managing Director of Star Boxes India (Private) Limited.
Dr. Harsha Cabral, PC Independent Non-Executive Director
Dr. Cabral was appointed to the Board of Alumex Limited in January 2014. He is a Presidents Counsel
with 25 years of experience in the field of Company Law, Intellectual Property Law, International
Trade Law and Commercial Arbitration. He holds a Doctorate in Corporate Law from the University of
Canberra, Australia.
Dr. Cabral is a Member of the Law Commission of Sri Lanka, Member of the Advisory Commission on
Company Law in Sri Lanka, Member of the Council of the University of Colombo, Member of the
Board of Studies of the Council of Legal Education and a Member of the Academic Board of Studies of
the Institute of Chartered Accountants of Sri Lanka. He is one of the architects of the new Companies
Act of Sri Lanka. Dr. Cabral serves as Independent Non-Executive Director on the Boards of Diesel &
Motor Engineering PLC, Union Bank PLC, Tokyo Cement Company (Lanka) PLC, Richard Pieris
Distributors Limited, Lanka ORIX Finance PLC, Tokyo Super Cement Company Lanka (Private) Limited,
Fuji Cement (Lanka) Private Limited, Commercial Leasing & Finance Limited, Tokyo Power (Lanka)
Private Limited and Hambana Petrochemicals Limited. He serves on several Audit Committees,
Nomination Committees and Remuneration Committees, chairing some of them. Dr. Cabral is the
author of several books on Corporate Law and Intellectual Property Law.
Mr. Munaweera was appointed to Alumex Board in January 2014. He counts over 30 years of
experience in mercantile and audit sector. Mr. Munaweera is the Precedent Partner of
S. Munaweera & Company, Chartered Accountants and also serves as the Managing Director of
Southern Management and Corporate Services (Private) Limited. He holds a Bachelor of Commerce
(Special) Degree from the University of Colombo and a Master of Business Administration from the
University of Sri Jayewardenepura. Mr. Munaweera is a Fellow Member of the Institute of Chartered
Accountants of Sri Lanka (FCA) and the Institute of Certified Management Accountants of Sri Lanka
(FCMA).
Mr. Aroon Janak Hirdaramani (Alternate to Mr. R. P. Pathirana) Non-Executive Director
Mr. Hirdaramani was appointed to the Board of Alumex Limited in November 2010. He holds a
Bachelor's Degree in Business Economics from Brown University in 2001. After graduation, he
worked as an analyst in investment banking at Credit Suisse in New York. Mr. Hirdaramani has been a
Director of the Hirdaramani Group since 2003. He is a Member of the Young Presidents' Organization,
where he serves as the Education Chair for the Sri Lanka Chapter and as Membership Chair for the
Global Apparel Network. He is also the Deputy Chairman of the Sri Lanka Apparel Exporters
Association.


Mr. Abdulhusein was appointed to the Board of Alumex Limited in November 2010 as an Alternate
Director and appointed to the Board as a Director in November 2011. With over 30 years of business
experience, he is an entrepreneur and investor in the corporate sector in Sri Lanka and India.
Mr. Abdulhusein is the Managing Director of Star Packaging (Private) Limited and the
Chairman/Managing Director of Star Boxes India (Private) Limited.
Dr. Harsha Cabral, PC Independent Non-Executive Director
Dr. Cabral was appointed to the Board of Alumex Limited in January 2014. He is a Presidents Counsel
with 25 years of experience in the field of Company Law, Intellectual Property Law, International
Trade Law and Commercial Arbitration. He holds a Doctorate in Corporate Law from the University of
Canberra, Australia.
Dr. Cabral is a Member of the Law Commission of Sri Lanka, Member of the Advisory Commission on
Company Law in Sri Lanka, Member of the Council of the University of Colombo, Member of the
Board of Studies of the Council of Legal Education and a Member of the Academic Board of Studies of
the Institute of Chartered Accountants of Sri Lanka. He is one of the architects of the new Companies
Act of Sri Lanka. Dr. Cabral serves as Independent Non-Executive Director on the Boards of Diesel &
Motor Engineering PLC, Union Bank PLC, Tokyo Cement Company (Lanka) PLC, Richard Pieris
Distributors Limited, Lanka ORIX Finance PLC, Tokyo Super Cement Company Lanka (Private) Limited,
Fuji Cement (Lanka) Private Limited, Commercial Leasing & Finance Limited, Tokyo Power (Lanka)
Private Limited and Hambana Petrochemicals Limited. He serves on several Audit Committees,
Nomination Committees and Remuneration Committees, chairing some of them. Dr. Cabral is the
author of several books on Corporate Law and Intellectual Property Law.
Mr. Munaweera was appointed to Alumex Board in January 2014. He counts over 30 years of
experience in mercantile and audit sector. Mr. Munaweera is the Precedent Partner of
S. Munaweera & Company, Chartered Accountants and also serves as the Managing Director of
Southern Management and Corporate Services (Private) Limited. He holds a Bachelor of Commerce
(Special) Degree from the University of Colombo and a Master of Business Administration from the
University of Sri Jayewardenepura. Mr. Munaweera is a Fellow Member of the Institute of Chartered
Accountants of Sri Lanka (FCA) and the Institute of Certified Management Accountants of Sri Lanka
(FCMA).
Mr. Aroon Janak Hirdaramani (Alternate to Mr. R. P. Pathirana) Non-Executive Director
Mr. Hirdaramani was appointed to the Board of Alumex Limited in November 2010. He holds a
Bachelor's Degree in Business Economics from Brown University in 2001. After graduation, he
worked as an analyst in investment banking at Credit Suisse in New York. Mr. Hirdaramani has been a
Director of the Hirdaramani Group since 2003. He is a Member of the Young Presidents' Organization,
where he serves as the Education Chair for the Sri Lanka Chapter and as Membership Chair for the
Global Apparel Network. He is also the Deputy Chairman of the Sri Lanka Apparel Exporters
Association.


Mr. Tyeabally Akbarally (Alternate to Mr. A. A. Akbarally) Non-Executve Director
Mr. Akbarally was appointed to the Board of Alumex Limited in November 2010. He has been a
Director of the Akbar Brothers Group of Companies since 1979. Mr. Akbarally is actvely engaged in
the tea and commodity export trade. He was a past Chairman of the Colombo Tea Traders
Associaton and Spices and Allied Products Producers and Traders Associaton. He is also a Director
of Amana Bank Limited and the Chairman of Amana Takaful PLC, and is on the Board of several other
companies.
8.3 Other Directorships Held by the Board of Directors
Set below are the other directorships held by the Board of Directors of Alumex Limited.
Table 8-3: Other Directorships Held by Board of Directors of Alumex Limited
Name Other Directorships Held
Mr. Abeyakumar Mohan Pandithage

AES Kelanitssa (Private) Limited
Agility Logistcs (Private) Limited
Agro Technica Limited
Air Global (Private) Limited
Alco Industries (Private) Limited
Amaya Leisure PLC
Avro Enterprises (Private) Limited
Bhagya Hydro (Private) Limited
Blue Mountain Tea Exports (Private) Limited
Bonterra Lanka Limited
Carbotels (Private) Limited
Ceylon Ocean Lines Limited
Chas P. Hayley & Company (Private) Limited
Civaro Internatonal Limited
Civaro Lanka (Private) Limited
Clarion Shipping (Private) Limited
CMA-CGM Lanka (Private) Limited
CMA-CGM Logistcs Lanka (Private) Limited
Connaisance Air Travels (Private) Limited
Creatve Polymats (Private) Limited
Culture Club Resorts (Private) Limited
D P L Plantatons (Private) Limited
Dean Foster (Private) Limited
Delmege Coir (Private) Limited
Delmege Forsyth & Company (Exports) (Private) Limited
Delmege Forsyth & Company (Shipping) Limited
Delmege Freight Services (Private) Limited
Delmegeair Services (Private) Limited
Diesel & Motor Engineering Company PLC
Dipped Products PLC
Eastern Hotels (Private) Limited
Expelogix (Private) Limited
Feltex (Private) Limited
Grossart (Private) Limited
H J S Condiments Limited
Hanwella Rubber Products Limited
Haycarb PLC
Haycarb Value Added Product (Private) Limited
Haycolour (Private) Limited


Haydea Business Solutons (Private) Limited
Hayeys Business Solutons Internatonal (Private) Limited
Hayleylines Limited
Hayleys Advants Limited
Hayleys Agriculture Holdings Limited
Hayleys Agro Biotech (Private) Limited
Hayleys Agro Farms (Private) Limited
Hayleys Agro Fertlizers (Private) Limited
Hayleys Consumer Products Limited
Hayleys Electronics Lightng (Private) Limited
Hayleys Energy Services Lanka (Private) Limited
Hayleys Fibre PLC
Hayleys Foundaton (Guarantee) Limited
Hayleys Global Beverages (Private) Limited
Hayleys Group Services (Private) Limited
Hayleys Hydro Energy (Private) Limited
Hayleys Industrial Solutons (Private) Limited
Hayleys Leisure Holdings (Private) Limited
Hayleys Lifesciences (Private) Limited
Hayleys MGT Knitng Mills PLC
Hayleys Neluwa Hydro Power (Private) Limited
Hayleys Plantaton Services (Private) Limited
Hayleys PLC
Hayleys Power Limited
Hayleys Travels & Tours (Private) Limited
Haymat (Private) Limited
Home For Every Plantaton Worker Foundaton(Guarantee)
Limited
Hunas Falls Hotels PLC
Internatonal Consumer Brands Limited
Kandyan Resorts (Private) Limited
Kelani Valley Instant Tea (Private) Limited
Kelani Valley Plantatons PLC
Lakdiyatha (Private) Limited
Lanka Orient Express Lines Limited
Lewis Brown Air Services (Private) Limited
Lewis Shipping (Private) Limited
Lignocell (Private) Limited
Logistcs Internatonal Limited
Logiventures (Private) Limited
Logiwiz Limited
Logiwiz N W (Private) Limited
Mabroc Teas (Private) Limited
Maritime Agencies (Private) Limited
Millennium Transportaton (Private) Limited
MIT Cargo (Private) Limited
Mocet Internatonal (Private) Limited
Mocet Lanka (Private) Limited
Mountain Hawk (Private) Limited
Mountain Hawk Express (Private) Limited
N.Y.K. Line Lanka (Private) Limited


Neluwa Cascade Hydro Power (Private) Limited
Neoprex (Private) Limited
Nirmalapura Wind Power (Private) Limited
North South Lines (Private) Limited
O E Techniques Limited
Palma Limited
Power Engineering Solutons (Private) Limited
Puritas (Private) Limited
Quality Seed Company (Private) Limited
Ravi Industries Limited
Recogen (Private) Limited
Rileys (Private) Limited
Sri Lanka Port Management Consultancy Services Limited
Sunfrost (Private) Limited
T T E L Hydro Power Company (Private) Limited
T T E L Somerset Hydro Power (Private) Limited
Talawakelle Tea Estates PLC
Texnil (Private) Limited
The Beach Resorts Limited
The Kingsbury PLC
The Queensbury (Private) Limited
Toyo Cushion Lanka (Private) Limited
Ultracarb (Private) Limited
Venigros (Private) Limited
Volanka (Private) Limited
Volanka Exports Limited
Volanka Insurance Brokers (Private)
Yusen Logistcs & Kusuhara Lanka (Private) Limited

Foreign Companies
Carbokarn Company Limited
Charles Fibres (Private) Limited
Civaro Freight India (Private) Limited
CK Regen Systems Company Limited
Dipped Products (Thailand) Limited
Eurocarb Products Limited
Haycarb Holdings Australia (Pty) Limited
Haycarb Holdings Bitung Limited
Haychem (Bangladesh) Limited
Haylex USA
Haylex B V
Haylex Limited (UK)
Haymark Limited
Ico Guant Spa
Logiwiz Logistcs India (Private) Limited
Mabroc Japan Company Limited
PT Mapalus Makawanua Charcoal Industry
Shizuka Company Limited

Mr. Rohan Palitha Peris



Mr. Sarath Clement Ganegoda

Agro Technica Limited
Air Global (Private) Limited
Carbotels (Private) Limited
D P L Plantatons (Private) Limited
Dean Foster (Private) Limited
Delmege Insurance Brokers (Private) Limited
Delmege Risk Solutons (Private) Limited
Dipped Products PLC
Eastern Hotels (Private) Limited
Feltex (Private) Limited
Grossart (Private) Limited
Haycarb PLC
Haycolour (Private) Limited
Haydea Business Solutons (Private) Limited
Hayeys Business Solutons Internatonal (Private) Limited
Hayleys Advants Limited
Hayleys Agriculture Holdings Limited
Hayleys Agro Fertlizers (Private) Limited
Hayleys Consumer Products Limited
Hayleys Electronics Lightng (Private) Limited
Hayleys Fibre PLC
Hayleys Foundaton (Guarantee) Limited
Hayleys Group Services (Private) Limited
Hayleys Hydro Energy (Private) Limited
Hayleys Industrial Solutons (Private) Limited
Hayleys Leisure Holdings (Private) Limited
Hayleys Lifesciences (Private) Limited
Hayleys Photoprint Limited
Hayleys Plantaton Services (Private) Limited
Hayleys PLC
Hayleys Travels & Tours (Private) Limited
Hayleys-MGT Knitng Mills PLC
Hunas Falls Hotels PLC
Kelani Valley Plantatons PLC
Kinetcs (Private) Limited
Lignocell (Private) Limited
Logiventures (Private) Limited
Maritme Agencies (Private) Limited
Millennium Transportaton (Private) Limited
MIT Cargo (Private) Limited
Neoprex (Private) Limited
North South Lines (Private) Limited

Mr. Sarath Clement Ganegoda

Palma Limited
Ravi Industries Limited
Rileys (Private) Limited
Texnil (Private) Limited
The Kingsbury PLC
Toyo Cushions Lanka (Private) Limited
Venigros (Private) Limited
Volanka (Private) Limited
Volanka Insurance Brokers (Private) Limited

Foreign Companies
Charles Fibres (Private) Limited
Haylex Limited (UK)
Haylex B V
Dipped Products (Thailand) Limited
Haychem (Bangladesh) Limited
PT Mapalus Makawanua

Mr. Ranil Prasad Pathirana

Ceylon Knit Trend (Private) Limited
CKT Apparel (Private) Limited
Hayleys MGT Knitng Mills PLC
Hayleys PLC
Hi Fashion Holdings (Private) Limited
Hirdaramani (Private) Limited
Hirdaramani Apparel Holdings (Private) Limited
Hirdaramani Garments Katunayake (Private) Limited
Hirdaramani Industries (Private) Limited
Hirdaramani Internatonal Exports (Private) Limited
Hirdaramani Investment Holdings (Private) Limited
Hirdaramani Leisure Holdings (Private) Limited
Hirdaramani Mercury Apparel (Private) Limited
Rosewood (Private) Limited
Sampath Bank PLC
Star Packaging (Private) Limited
Union Residencies (Private) Limited
Windforce (Private) Limited

Mr. Ali Asghar Akbarally

A.B. Developments (Private) Limited
A.B. Propertes (Private) Limited
Akbar Brothers (Private) Limited
Akbar Brothers Exports (Private) Limited
Akbar Pharmaceutcals (Private) Limited
Buluthota Energy (Private) Limited
Cleanco Lanka (Private) Limited
Energy Reclamaton (Private) Limited
Esna Power Limited

Mr. Ali Asghar Akbarally

Falcon Apparels (Private) Limited
Falcon Trading (Private) Limited
Flexiprint (Private) Limited
Hermitage Resort (Private) Limited
Kokawita Terraqua (Private) Limited
Land & Building Limited
Nirmalapura Windpower (Private) Limited
Powergen Lanka (Private) Limited
Quick Tea (Private) Limited
Seguwantvu Wind Power (Private) Limited
Tea House (Private) Limited
Terra Aqua (Private) Limited
Vidatamuni Wind Power (Private) Limited
Vidul Madugeta (Private)Limited
Windforce (Private) Limited
Mr. Huzaifa Hamzaally Abdulhusein

Crimson CS (Private) Limited
Star Boxes India (Private) Limited
Star Leisure (Private) Limited
Star Pack Investments (Private) Limited
Star Packaging (Private) Limited

Dr. Harsha Cabral, PC

Commercial Leasing and Finance PLC
Diesel & Motor Engineering Company PLC
Fuji Cement Lanka (Private) Limited
Hambana Petrochemicals Limited
Hayleys PLC
Lanka Orix Finance PLC
Richard Pieris Distributors Limited
Tokyo Power Lanka (Private) Limited
Tokyo Cement Company (Lanka) PLC
Tokyo Super Cement Lanka (Private) Limited
Union Bank PLC

Mr. Somasiri Munaweera

S M Bentley Corporate Services (Private) Limited
S Munaweera & Company - Precedent Partner
Southern Management and Corporate Services (Private)
Limited
Sterling Leasing and Investment Limited


Chatham Holdings (Private) Limited
Ecotels (Private) Limited
H One (Private) Limited
H-Connect (Private) Limited
Hirdaramani (Private) Limited
Hirdaramani Apparel Holdings (Private) Limited
Hirdaramani Garments Katunayake (Private) Limited
Hirdaramani Industries (Private) Limited
Hirdaramani Internatonal Exports (Private) Limited

Hirdaramani Investment Holdings (Private) Limited
Hirdaramani Leisure Holdings (Private) Limited
Hirdaramani Mercury Apparel (Private) Limited
Hirdaramani Power (Private) Limited
Hirdaramani Propertes (Private) Limited
Long Island Clothing Company (Private) Limited
Rosewood (Private) Limited
Sithro Garments Finishing Company Limited
Sovereign Reality (Private) Limited
Union Residencies (Private) Limited
Your Style Lab (Private) Limited
Zenith Insurance Brokers (Private) Limited

(Alternate to
Mr. A. A. Akbarally)

A.B Developments (Private) Limited
A.B Propertes (Private) Limited
Akbar Brothers (Private) Limited
Akbar Brothers Exports (Private) Limited
Akbar Pharmaceutcals (Private) Limited
Alco Industries (Private) Limited (Alternate)
Amana Asset Management Limited
Amana Bank Limited
Amana Capital (Private) Limited
Amana Global Limited
Amana Investments Limited
Amana Takaful PLC
Avro Enterprises(Private) Limited (Alternate)
Energy Reclamaton (Private) Limited
Falcon Apparels (Private) Limited
Falcon Trading (Private) Limited
Flexiprint (Private) Limited
Land and Buildings Limited
Quick Tea (Private) Limited
Zahra Exports (Private) Limited


8.4 Board of Directors of the Subsidiary Companies
The Board of Directors of the two subsidiary companies, Avro Enterprises (Private) Limited and Alco
Industries (Private) Limited consists of the following personnel.
Table 8-4: Board of Directors of Avro Enterprises (Private) Limited and Alco Industries (Private)
Limited
Name Designaton
Mr. Dediwela Widanaarachchilage Pramuk Nishantha
Dediwela
Executve Director
Mr. Sarath Clement Ganegoda Non-Executve Director
Mr. Ranil Prasad Pathirana Non-Executve Director
Mr. Ali Asghar Akbarally Non-Executve Director
Mr. Huzaifa Hamzaally Abdulhusein Non-Executve Director
Non-Executve Director

8.5 Directors Interest in Shares
8.5.1 Directors Direct Shareholdings in the Company
The Directors shareholdings in the Company as at January 23, 2014 (i.e. date of Inital Listng
Applicaton) are given below.
Table 8-5: Directors Direct Shareholding in Alumex Limited
Name of Director Number of
Shares Held
Percentage of
Shareholding

Mr. Abeyakumar Mohan Pandithage Note 1 - -
Mr. Rohan Palitha Peris - -
Mr. Dediwela Widanaarachchilage Pramuk
Nishantha Dediwela

10,669,200 3.79%
Mr. Sarath Clement Ganegoda Note 1 - -
Mr. Ranil Prasad Pathirana Note 1/Note 2 - -
Mr. Ali Asghar Akbarally Note 3 - -
Mr. Huzaifa Hamzaally Abdulhusein Note 4 - -
Dr. Harsha Cabral, PC - -
Mr. Somasiri Munaweera - -
Note 2
- -
Note 5
- -


8.4 Board of Directors of the Subsidiary Companies
The Board of Directors of the two subsidiary companies, Avro Enterprises (Private) Limited and Alco
Industries (Private) Limited consists of the following personnel.
Table 8-4: Board of Directors of Avro Enterprises (Private) Limited and Alco Industries (Private)
Limited
Name Designaton
Mr. Dediwela Widanaarachchilage Pramuk Nishantha
Dediwela
Executve Director
Mr. Sarath Clement Ganegoda Non-Executve Director
Mr. Ranil Prasad Pathirana Non-Executve Director
Mr. Ali Asghar Akbarally Non-Executve Director
Mr. Huzaifa Hamzaally Abdulhusein Non-Executve Director
Non-Executve Director

8.5 Directors Interest in Shares
8.5.1 Directors Direct Shareholdings in the Company
The Directors shareholdings in the Company as at January 23, 2014 (i.e. date of Inital Listng
Applicaton) are given below.
Table 8-5: Directors Direct Shareholding in Alumex Limited
Name of Director Number of
Shares Held
Percentage of
Shareholding

Mr. Abeyakumar Mohan Pandithage Note 1 - -
Mr. Rohan Palitha Peris - -
Mr. Dediwela Widanaarachchilage Pramuk
Nishantha Dediwela

10,669,200 3.79%
Mr. Sarath Clement Ganegoda Note 1 - -
Mr. Ranil Prasad Pathirana Note 1/Note 2 - -
Mr. Ali Asghar Akbarally Note 3 - -
Mr. Huzaifa Hamzaally Abdulhusein Note 4 - -
Dr. Harsha Cabral, PC - -
Mr. Somasiri Munaweera - -
Note 2
- -
Note 5
- -


Note 1 Hayleys PLC holds 171,332,200 (60.88%) Ordinary Votng Shares of Alumex Limited.
Mr. Abeyakumar Mohan Pandithage holds 2,338 ordinary votng shares of Hayleys PLC and is the
Executve Chairman and Chief Executve of Hayleys PLC. Mr. Sarath Clement Ganegoda holds 2,000
ordinary votng shares and is an Executve Director of Hayleys PLC. Mr. Ranil Prasad Pathirana holds
2,000 ordinary votng shares and is a Non-Executve Independent Director of Hayleys PLC.
Note 2 Rosewood (Private) Limited holds 38,500,000 (13.68%) Ordinary Votng Shares of Alumex Limited.
Mr. Ranil Prasad Pathirana and Mr. Aroon Janak Hirdaramani are both Executve Directors of
Rosewood (Private) Limited.
Note 3 Akbar Brothers (Private) Limited holds 38,500,000 (13.68%) Ordinary Votng Shares of Alumex
Limited. Mr. Ali Asghar Akbarally holds 24,548 (9.90%) ordinary votng shares of Akbar Brothers
(Private) Limited and is an Executve Director of Akbar Brothers (Private) Limited.
Note 4 Star Pack Investments (Private) Limited holds 21,000,000 (7.46%) Ordinary Votng Shares of Alumex
Limited. Mr. Huzaifa Hamzaally Abdulhusein holds 15,000,000 (50.00%) ordinary votng shares of
Star Pack Investments (Private) Limited and is the Managing Director of Star Pack Investments
(Private) Limited.
Note 5 Akbar Brothers (Private) Limited holds 38,500,000 (13.68%) Ordinary Votng Shares of Alumex
Limited. Mr. Tyeabally Akbarally holds 24,173 (9.75%) ordinary votng shares of Akbar Brothers
(Private) Limited and is an Executve Director of Akbar Brothers (Private) Limited.
8.5.2 Sale and Purchase of Shares by Directors
Share transactons made by Directors during the one year period preceding the date of the
Prospectus are tabulated below.
Table 8-6: Share Transactons of Directors in Alumex Limited
Name of Director Date Transacton Number of
Shares Sold
Price Per
Share

Mr. Dediwela
Widanaarachchilage Pramuk
Nishantha Dediwela
December 31,
2013
Sale of shares to
Hayleys PLC
3,330,800 Rs.14/-
Apart from those details mentoned in Table 8-6, no Director of the Company has sold or purchased
Shares of Alumex Limited during the year immediately preceding the date of the Prospectus.
8.6 Directors Emoluments
Aggregate emoluments paid in the form of salaries, bonuses and/or prot sharing payments to the
Directors including the Managing Director during the FY 2012/13 amounted to Rs. 15,957,674/-.
The estmated aggregate emoluments payable by Alumex Limited to the Directors including the
Managing Director during the FY 2013/14 is estmated at approximately Rs. 19,475,021/-.
8.7 Directors Interests in Assets
A motor vehicle was acquired from Haycarb PLC in September 2012 for a consideraton of
Rs. 5,775,048/-. Messrs. Abeyakumar Mohan Pandithage and Sarath Clement Ganegoda, are
Directors of Haycarb PLC.
Other than the aforementoned transfer of a motor vehicle, the Directors of Alumex Limited have no
interest in assets acquired, disposed or leased by the Company during the two (02) years preceding
the date of this Prospectus.
Furthermore, it is not proposed that the Directors will hold any interest in assets to be acquired,
disposed, or leased by the Company in the two (02) years subsequent to the Oering.


8.8 Directors Interests in Contracts
There are no contracts or arrangements in force as at the date of the Initial Listing Application in
which the Directors of Alumex Limited are materially interested in relation to the business of the
Company.
8.9 Statement Board of Directors
No Director or a person nominated to become a Director of the Company has been involved in any of
the following:
A petition under any bankruptcy laws filed against such person or any partnership in which he
was a partner or any corporation of which he was an executive officer; and
Conviction for fraud, misappropriation or breach of trust or any other similar offence which the
CSE considers a disqualification
8.10 Corporate Governance Practices
Alumex Limited has a policy of complying with established best practices in Corporate Governance.
The Board of Directors of Alumex Limited has adopted core values and standards which set out the
conduct of staff in their dealings with the shareholders, colleagues, customers and other
stakeholders which ensure positive workplace management, marketplace responsibility,
environmental stewardship, community engagement, and sustained financial performance. This
involves the maintenance of
An efficient organizational structure
Systems for internal compliance and risk
Transparent internal and external reporting
The Company understands, supports and has applied the core concepts that underlie enterprise
governance and ensures that its standards remain in compliance with the regulatory requirement of
the CSE Listing Rules.
8.10.1 Audit Committee
The Audit Committee consists of two (02) Independent Non-Executive Directors. Members of the
Audit Committee are Dr. Harsha Cabral, Chairman of the Committee, and Mr. Somasiri Munaweera.
The Audit Committees authority, responsibilities and specific duties have been formalised through
an Audit Committee Charter. As such, the responsibilities of the Audit Committee are:
Review the financial reporting process of Alumex Group, in order to monitor the integrity of the
financial statements of the Company, its annual report, accounts and quarterly reports prepared
for disclosure and the significant financial reporting judgments contained therein.
Review the effectiveness of the Companys internal control system, discuss the scope of internal
and external auditors review of internal control systems, review the significant findings and
recommendations of external/internal auditors, together with the management responses and
review systems and controls and service level agreements.


Review the adequacy of the scope, functions and resources of the internal audit department in
relation to the functions to be performed, review the internal audit programs proposed for the
ensuing year, together with any intermediate or long term audit plans, recommend appointment
or termination of Head of Internal Audit and out-sourced service providers to the internal audit
functions and review the conflict of interest program, ensure that the internal audit function is
independent of the activities it audits and that it is performed with impartiality, proficiency and
with due professional care.
Recommend to the Board the appointment or continuing engagement of the external auditors,
approve the terms of engagement of the external auditors, review the scope and procedures to
be used in their audit, review the independence of the external auditors, review their report of
the Companys financial position and their management letter, review and discuss for possible
corrective action any discrepancies or recommendations noted in their report, and
managements response to them, inquire as to the Company environment (cooperation,
limitations, restrictions etc.) within which their audit was conducted and consider the views of
the external auditor concerning the adequacy of the Companys internal controls and internal
audit function and discuss the scope of, and plans for, future internal audits, review the fees paid
to the external auditors and meet privately with the external auditors at least annually.
Reviews the effectiveness of the system for monitoring compliance with laws and regulations,
results of managements investigation and follow-up of any instances of non-compliance, review
arrangements by which employees of the Group may, in confidence, raise concerns about
possible irregularities in financial reporting, internal control weaknesses, misappropriations or
any other matters.
Report to the Board its findings based on the reports of the external auditor, the internal auditor
and members of management, together with any recommendations for action, which it may
consider appropriate, provide a communication link between internal audit, external auditors
and the Board of Directors, report annually to shareholders, as to how the responsibilities of the
audit committee were discharged.
Other responsibilities include discuss with the management the major policies in place with
respect to risk assessment and risk management, discuss with the management and assign task
masters who can be held responsible for different aspects, review as appropriate with the
external auditor, the internal auditor and the Managing Director or his delegates, the overall
adequacy of the Companys programs, systems and procedures for compliance with legal and
regulatory requirements and for assurance that the management and affairs of the Company are
conducted with all due regard for ethical and legal norms and standards, review summaries of
executive expense reports, review closed and pending litigation, and review retirement benefit
funding, perform other activities as directed by the Board of Directors and review the adequacy
of the committee charter periodically, requesting Board approval for proposed changes.
8.10.2 Remuneration Committee
The Remuneration Committee of Alumex Limited consists of two (02) Independent Non-Executive
Directors namely Dr. Harsha Cabral, Chairman of the Committee, and Mr. Somasiri Munaweera.
Meetings of the Remunerations Committee are held as and when necessary.


8.8 Directors Interests in Contracts
There are no contracts or arrangements in force as at the date of the Initial Listing Application in
which the Directors of Alumex Limited are materially interested in relation to the business of the
Company.
8.9 Statement Board of Directors
No Director or a person nominated to become a Director of the Company has been involved in any of
the following:
was a partner or any corporation of which he was an executive officer; and
CSE considers a disqualification
8.10 Corporate Governance Practices
Alumex Limited has a policy of complying with established best practices in Corporate Governance.
The Board of Directors of Alumex Limited has adopted core values and standards which set out the
conduct of staff in their dealings with the shareholders, colleagues, customers and other
stakeholders which ensure positive workplace management, marketplace responsibility,
environmental stewardship, community engagement, and sustained financial performance. This
involves the maintenance of
An efficient organizational structure
Systems for internal compliance and risk
Transparent internal and external reporting
The Company understands, supports and has applied the core concepts that underlie enterprise
governance and ensures that its standards remain in compliance with the regulatory requirement of
the CSE Listing Rules.
8.10.1 Audit Committee
The Audit Committee consists of two (02) Independent Non-Executive Directors. Members of the
Audit Committee are Dr. Harsha Cabral, Chairman of the Committee, and Mr. Somasiri Munaweera.
The Audit Committees authority, responsibilities and specific duties have been formalised through
an Audit Committee Charter. As such, the responsibilities of the Audit Committee are:
Review the financial reporting process of Alumex Group, in order to monitor the integrity of the
financial statements of the Company, its annual report, accounts and quarterly reports prepared
for disclosure and the significant financial reporting judgments contained therein.
Review the effectiveness of the Companys internal control system, discuss the scope of internal
and external auditors review of internal control systems, review the significant findings and
recommendations of external/internal auditors, together with the management responses and
review systems and controls and service level agreements.


Review the adequacy of the scope, functions and resources of the internal audit department in
relation to the functions to be performed, review the internal audit programs proposed for the
ensuing year, together with any intermediate or long term audit plans, recommend appointment
or termination of Head of Internal Audit and out-sourced service providers to the internal audit
functions and review the conflict of interest program, ensure that the internal audit function is
independent of the activities it audits and that it is performed with impartiality, proficiency and
with due professional care.
Recommend to the Board the appointment or continuing engagement of the external auditors,
approve the terms of engagement of the external auditors, review the scope and procedures to
be used in their audit, review the independence of the external auditors, review their report of
the Companys financial position and their management letter, review and discuss for possible
corrective action any discrepancies or recommendations noted in their report, and
managements response to them, inquire as to the Company environment (cooperation,
limitations, restrictions etc.) within which their audit was conducted and consider the views of
the external auditor concerning the adequacy of the Companys internal controls and internal
audit function and discuss the scope of, and plans for, future internal audits, review the fees paid
to the external auditors and meet privately with the external auditors at least annually.
Reviews the effectiveness of the system for monitoring compliance with laws and regulations,
results of managements investigation and follow-up of any instances of non-compliance, review
arrangements by which employees of the Group may, in confidence, raise concerns about
possible irregularities in financial reporting, internal control weaknesses, misappropriations or
any other matters.
Report to the Board its findings based on the reports of the external auditor, the internal auditor
and members of management, together with any recommendations for action, which it may
consider appropriate, provide a communication link between internal audit, external auditors
and the Board of Directors, report annually to shareholders, as to how the responsibilities of the
audit committee were discharged.
Other responsibilities include discuss with the management the major policies in place with
respect to risk assessment and risk management, discuss with the management and assign task
masters who can be held responsible for different aspects, review as appropriate with the
external auditor, the internal auditor and the Managing Director or his delegates, the overall
adequacy of the Companys programs, systems and procedures for compliance with legal and
regulatory requirements and for assurance that the management and affairs of the Company are
conducted with all due regard for ethical and legal norms and standards, review summaries of
executive expense reports, review closed and pending litigation, and review retirement benefit
funding, perform other activities as directed by the Board of Directors and review the adequacy
of the committee charter periodically, requesting Board approval for proposed changes.
8.10.2 Remuneration Committee
The Remuneration Committee of Alumex Limited consists of two (02) Independent Non-Executive
Directors namely Dr. Harsha Cabral, Chairman of the Committee, and Mr. Somasiri Munaweera.
Meetings of the Remunerations Committee are held as and when necessary.


With the objective of attracting and retaining high calibre individuals, in a competitive environment,
having regard to the business performance and stakeholder expectations, the Remuneration
Committee shall be responsible,
After taking into consideration the current industrial norms to lay down guidelines and
parameters for the compensation structure of the Managing Director, Executive Directors and
other Key Managerial Staff, keeping in line with the overall Hayleys PLC group remuneration
policies.
To set goals and targets for the Managing Director, Executive Directors and Key Management
Personnel.
To monitor and review the performance of the Managing Director, Executive Directors and other
Key Management Personnel
To evaluate the performance of the Managing Director, Executive Directors and other Key
Management Personnel against the set targets and goals periodically and determine the basis for
revising remuneration, benefits and other payments of performance based incentives.
8.11 Corporate Management of Alumex Limited
Brief profiles of the corporate management of Alumex Limited are provided below.
Please refer Section 8.2 for profile.
Dr. Chandika Wickramatillake Deputy General Manager (Production)
Dr. Wickramatillake joined Alumex Limited in September 2012 after having studied and worked
overseas for 18 years in countries such as UK, Netherlands, Australia and USA. Dr. Wickramatillake
holds a Degree in Manufacturing Systems Engineering from the University of Hertfordshire in UK. He
obtained his PhD in 2000 from the same University in the field of Material Science with extensive
aluminium based research work performed in collaboration with Airbus, 3M and Defence Evaluation
Research Agency (Farnborough, UK). His publications to date include subjects in the field of
Modification of Aluminium Surfaces, Supply Chain, Enterprise Resource Planning and Project
Management. He is a Member of the Institute of Materials (UK), Institute of Physics (UK) and
Institute of Electrical Engineers (UK).
Mr. Nilruk Jeevaratne Deputy General Manager (Marketing)
Mr. Jeevaratne joined Alumex Group in November 2011. He has over 26 years of experience in the
aluminium industry. Prior to joining Alumex Limited, he worked as the National Sales Manager for SGI
Architectural, Australia where he was in charge of distributing a range of Aluminium facade products
to the Australian market. He was the General Manager of PD Keells Limited/Kelsey Aluminium
Limited before migrating to Australia.


Mr. Prageeth Rajapaksha Chief Financial Officer
Mr. Rajapaksha joined Alumex Limited in March 2012 as the Chief Financial Officer. He has 14 years
of experience in varied industries of audit, telecommunication and manufacturing. Mr. Rajapaksha
holds a Bachelor of Business Administration Degree from the University of Colombo and a Diploma in
Information Systems Security Control and Audit from the Institute of Chartered Accountants of
Sri Lanka. He is an Associate Member of Institute of Chartered Accountants of Sri Lanka as well as the
Institute of Certified Management Accountants of Sri Lanka.
8.12 Corporate Managements Emoluments
Total emoluments paid to the corporate management excluding Executive Directors during the
FY 2012/13 amounted to Rs. 8,059,502/-. The estimated aggregate remuneration to be paid for
FY 2013/14, to the corporate management of Alumex Limited excluding Executive Directors is
expected to be approximately Rs. 15,607,645/- .
8.13 Statement Chairman/Chief Executive
The Chairman/ Chief Executive of Alumex Limited has not been involved in any of the following:
was a partner or any corporation of which he was an executive officer;
CSE considers a disqualification.


With the objective of attracting and retaining high calibre individuals, in a competitive environment,
having regard to the business performance and stakeholder expectations, the Remuneration
Committee shall be responsible,
After taking into consideration the current industrial norms to lay down guidelines and
parameters for the compensation structure of the Managing Director, Executive Directors and
other Key Managerial Staff, keeping in line with the overall Hayleys PLC group remuneration
policies.
To set goals and targets for the Managing Director, Executive Directors and Key Management
Personnel.
To monitor and review the performance of the Managing Director, Executive Directors and other
Key Management Personnel
To evaluate the performance of the Managing Director, Executive Directors and other Key
Management Personnel against the set targets and goals periodically and determine the basis for
revising remuneration, benefits and other payments of performance based incentives.
8.11 Corporate Management of Alumex Limited
Brief profiles of the corporate management of Alumex Limited are provided below.
Dr. Chandika Wickramatillake Deputy General Manager (Production)
Dr. Wickramatillake joined Alumex Limited in September 2012 after having studied and worked
overseas for 18 years in countries such as UK, Netherlands, Australia and USA. Dr. Wickramatillake
holds a Degree in Manufacturing Systems Engineering from the University of Hertfordshire in UK. He
obtained his PhD in 2000 from the same University in the field of Material Science with extensive
aluminium based research work performed in collaboration with Airbus, 3M and Defence Evaluation
Research Agency (Farnborough, UK). His publications to date include subjects in the field of
Modification of Aluminium Surfaces, Supply Chain, Enterprise Resource Planning and Project
Management. He is a Member of the Institute of Materials (UK), Institute of Physics (UK) and
Institute of Electrical Engineers (UK).
Mr. Nilruk Jeevaratne Deputy General Manager (Marketing)
Mr. Jeevaratne joined Alumex Group in November 2011. He has over 26 years of experience in the
aluminium industry. Prior to joining Alumex Limited, he worked as the National Sales Manager for SGI
Architectural, Australia where he was in charge of distributing a range of Aluminium facade products
to the Australian market. He was the General Manager of PD Keells Limited/Kelsey Aluminium
Limited before migrating to Australia.


Mr. Prageeth Rajapaksha Chief Financial Officer
Mr. Rajapaksha joined Alumex Limited in March 2012 as the Chief Financial Officer. He has 14 years
of experience in varied industries of audit, telecommunication and manufacturing. Mr. Rajapaksha
holds a Bachelor of Business Administration Degree from the University of Colombo and a Diploma in
Information Systems Security Control and Audit from the Institute of Chartered Accountants of
Sri Lanka. He is an Associate Member of Institute of Chartered Accountants of Sri Lanka as well as the
Institute of Certified Management Accountants of Sri Lanka.
8.12 Corporate Managements Emoluments
Total emoluments paid to the corporate management excluding Executive Directors during the
FY 2012/13 amounted to Rs. 8,059,502/-. The estimated aggregate remuneration to be paid for
FY 2013/14, to the corporate management of Alumex Limited excluding Executive Directors is
expected to be approximately Rs. 15,607,645/- .
8.13 Statement Chairman/Chief Executive
The Chairman/ Chief Executive of Alumex Limited has not been involved in any of the following:
was a partner or any corporation of which he was an executive officer;
CSE considers a disqualification.


9.0 OTHER COMPANY INFORMATION

9.1 Relationship with Key Customers and Suppliers of Alumex Limited
Customers
Alumex Group capitalises on its 57 dealers to distribute its products throughout the country. As such,
there is no dependency on any single customer that would affect the performance of the Alumex
Group.
Suppliers
Alumex Group sources a majority of its requirement of aluminium billet logs and ingots through
Dubai Aluminium (DUBAL), one of the largest aluminium manufacturers in the world. The main
reasons for the selection of a DUBAL as the main supplier are as follows;
Considering the quantities imported by the Alumex Group, which is small compared to global
volumes, sourcing from many suppliers would not be economical.
Being a commodity, there would not be a significant price differentiation between the global
suppliers of aluminium.
Alumex Group has been sourcing aluminium from DUBAL for 22 year and has built a good
relationship with the supplier.
However, it should be noted that there is no significant dependency on DUBAL for the supplies of
aluminium as there are other suppliers in the world for procurement of aluminium, with some of
whom the Company has already established a good relationship over the years.
9.2 Dividend Policy
The declaration and payment of dividends will be based on a number of factors, including but not
limited to the Companys earnings, cash flow position, future capital investments, overall financial
conditions and any other factors which the Board of Directors may deem relevant. Each Share of the
Company confers on the holder thereof the right to an equal share in dividends paid by the Company.
Details of dividends declared during the preceding financial years have been stated under
Dividends in the Accountants Report presented in Section 16.1 of the Prospectus.


9.3 Details of Material Indebtedness
Partculars of loans of Alumex Group as at December 31, 2013 are given below
Table 9-1: Loans of Alumex Group as at December 31, 2013
Company Bank/Financial
Insttuton
Facility Limit
(Rs.)
Outstanding
Balance as at
December 31,
2013
(Rs.)
Amount
Repayable
Within 1
Year
(Rs.)
Amount
Repayable
Afer 1
Year
(Rs.)
Alumex Limited
Commercial
Bank of Ceylon
PLC
130,800,000 47,299,622 35,049,702 12,249,920

Lanka Orix
Leasing
Company PLC
37,500,000 15,104,913 6,250,008 8,854,905
Avro Enterprises
(Private) Limited
- - - - -
Alco Industries
(Private) Limited
- - - - -
Total

168,300,000 62,404,535 41,299,710 21,104,825
Details of Leasing, Lease Purchase and Hire Purchase commitments of Alumex Limited as at
December 31, 2013 are given below.

Other than the commitments referred to in Table 9-2 above, there are no leasing, lease purchase or
hire purchase commitments of the Company or Alumex Group as at December 31, 2013.
Alumex Limited has made the following capital commitments as at December 31, 2013.
Table 9-3: Capital Commitments as at December 31, 2013
Nature of Transacton Capital Commitment (Rs.)
Purchase of automated die polishing system 17,190,024
Purchase of hydraulic pump 4,035,988
Purchase of powder coatngs plant and equipment 105,249,600
Purchase of powder sieving equipment 535,135
ERP system developments 2,212,696

9.4 Working Capital
The Board is of the opinion that the working capital is sucient for the purpose of carrying out day to
day operatons of the Company.

Table 9-2: Leasing and Hire Purchase Commitments of Alumex Limited as at December 31, 2013
Lessor Leasehold
Property

Period of Lease
(Years)
Outstanding Balance
(Rs)
Commercial Bank of Ceylon PLC Motor vehicle 4 218,964
Lanka Orix Leasing Company PLC Motor vehicle 4 1,992,856

9.0 OTHER COMPANY INFORMATION

9.1 Relationship with Key Customers and Suppliers of Alumex Limited
Customers
Alumex Group capitalises on its 57 dealers to distribute its products throughout the country. As such,
there is no dependency on any single customer that would affect the performance of the Alumex
Group.
Suppliers
Alumex Group sources a majority of its requirement of aluminium billet logs and ingots through
Dubai Aluminium (DUBAL), one of the largest aluminium manufacturers in the world. The main
reasons for the selection of a DUBAL as the main supplier are as follows;
Considering the quantities imported by the Alumex Group, which is small compared to global
volumes, sourcing from many suppliers would not be economical.
Being a commodity, there would not be a significant price differentiation between the global
suppliers of aluminium.
Alumex Group has been sourcing aluminium from DUBAL for 22 year and has built a good
relationship with the supplier.
However, it should be noted that there is no significant dependency on DUBAL for the supplies of
aluminium as there are other suppliers in the world for procurement of aluminium, with some of
whom the Company has already established a good relationship over the years.
9.2 Dividend Policy
The declaration and payment of dividends will be based on a number of factors, including but not
limited to the Companys earnings, cash flow position, future capital investments, overall financial
conditions and any other factors which the Board of Directors may deem relevant. Each Share of the
Company confers on the holder thereof the right to an equal share in dividends paid by the Company.
Details of dividends declared during the preceding financial years have been stated under
Dividends in the Accountants Report presented in Section 16.1 of the Prospectus.


9.3 Details of Material Indebtedness
Partculars of loans of Alumex Group as at December 31, 2013 are given below
Table 9-1: Loans of Alumex Group as at December 31, 2013
Company Bank/Financial
Insttuton
Facility Limit
(Rs.)
Outstanding
Balance as at
December 31,
2013
(Rs.)
Amount
Repayable
Within 1
Year
(Rs.)
Amount
Repayable
Afer 1
Year
(Rs.)
Alumex Limited
Commercial
Bank of Ceylon
PLC
130,800,000 47,299,622 35,049,702 12,249,920

Lanka Orix
Leasing
Company PLC
37,500,000 15,104,913 6,250,008 8,854,905
Avro Enterprises
(Private) Limited
- - - - -
Alco Industries
(Private) Limited
- - - - -
Total

168,300,000 62,404,535 41,299,710 21,104,825
Details of Leasing, Lease Purchase and Hire Purchase commitments of Alumex Limited as at
December 31, 2013 are given below.

Other than the commitments referred to in Table 9-2 above, there are no leasing, lease purchase or
hire purchase commitments of the Company or Alumex Group as at December 31, 2013.
Alumex Limited has made the following capital commitments as at December 31, 2013.
Table 9-3: Capital Commitments as at December 31, 2013
Nature of Transacton Capital Commitment (Rs.)
Purchase of automated die polishing system 17,190,024
Purchase of hydraulic pump 4,035,988
Purchase of powder coatngs plant and equipment 105,249,600
Purchase of powder sieving equipment 535,135
ERP system developments 2,212,696

9.4 Working Capital
The Board is of the opinion that the working capital is sucient for the purpose of carrying out day to
day operatons of the Company.

Table 9-2: Leasing and Hire Purchase Commitments of Alumex Limited as at December 31, 2013
Lessor Leasehold
Property

Period of Lease
(Years)
Outstanding Balance
(Rs)
Commercial Bank of Ceylon PLC Motor vehicle 4 218,964
Lanka Orix Leasing Company PLC Motor vehicle 4 1,992,856

9.5 Litigation, Disputes and Contingent Liabilities
There are no material legal, arbitration or mediation proceedings pending against the Company that
would materially affect the financial position of future operations or profits of the Company. The
Company was not involved in any legal, arbitration or mediation proceedings in the recent past,
which has any significant effects on the Companys financial position or profitability.
As at December 31, 2013, there are no penalties imposed by any regulatory or state authority against
the Company.
The contingent liabilities as at December 31, 2013 on guarantees given by Alumex Limited and its
subsidiaries to third parties amounted to Rs. 6,888,885/- (2012 Rs. 4,192,385/-).
Company has received a claim from the Department of Labour for surcharge payments on the
grounds of delayed EPF contributions made to the Central Bank of Sri Lanka 9 years before, for a
value of Rs. 2,149,551/- and it is still being discussed with the Department of Labour and the Central
Bank of Sri Lanka. The abovementioned delayed EPF contribution occurred prior to Hayleys PLCs
acquisition of the Alumex Group.
There are no material contingent liabilities, except the above mentioned items, that would affect the
current and future profits of the Company as at December 31, 2013.
9.6 Mortgages and Charges on Assets
Details pertaining to mortgages and charges on assets of Alumex are disclosed in Note 28 of the
financial statements for the nine months ended December 31, 2013 presented in Section 16.4 of this
Prospectus.
9.7 Material Contracts
Hayleys PLC, the parent company charges, rent and allocation expenses to Alumex Limited and its
subsidiaries for the provision of services including sharing of information technology resources,
secretarial, corporate, tax and financial advisory, treasury, management audit, human resource
management, security, legal, corporate communication and for the deployment of Managing Director
to manage the Group. The estimated costs are invoiced and paid on monthly basis and actual
expenses are settled annually.
Aggregate payments made for the above services during the FY 2012/13 amounted to
Rs. 15,191,241/- and it is expected to be paid for similar services during the FY 2013/14 to an
approximate extent of Rs. 38,945,000/-.
Other than abovementioned, there are no other material contracts, except for those contracts
entered into in the ordinary course of business by Alumex.
9.8 Details of Commissions Paid
No commission has been paid in the two (02) years preceding the Offering or payable for subscribing
or agreeing to subscribe or procuring or agreeing to procure subscriptions for any Shares of the
Company.
9.9 Details of Benefits Paid to Promoters
No benefit has been paid or given within the two (02) years preceding the Offering and there are no
benefit intended to be paid or given to any promoter.


10.0 CAPITAL STRUCTURE

As at the date of this Prospectus, the Stated Capital of the Company is Sri Lanka Rupees Thirty Three
Million Seven Hundred Thirty Four Thousand Six Hundred (Rs. 33,734,600/-).
10.1 An Overview of the Stated Capital
An overview of the Stated Capital of the Company for the two (02) years ended March 31, 2013, nine
(09) months ended December 31, 2013 and subsequent to the IPO upon full subscripton of the Oer
for Subscripton tranche of the Oering is set forth below.
Table 10-1: Stated Capital of Alumex Limited

As at
March 31,
2011
As at
March 31,
2012
As at
March 31,
2013
As at
December 31,
2013
Subsequent to
the IPO
Consideraton for the
issue of Fully Paid
Ordinary Shares (Rs.)
20,000,100 33,734,600 33,734,600 33,734,600

283,735,400

Number of Ordinary
Shares
in Issue
2,000,010 2,010,326 2,010,326 281,445,640

299,302,840

Table 10-2: Changes in Stated Capital of Alumex Limited

Number of
Shares
Rs.
Balance as at April 01, 2011 2,000,010 20,000,100
Issue of Shares on March 02, 2012 @ Rs.1,331.38 per Share
(Issue of one (01) new Share for every sixty three (63) existng
Shares of Alutec Extrusions (Private) Limited by way of a share swap
in relaton to the consolidaton of operatons indicated in
Secton 7.13)
10,316 13,734,500
Balance as at March 31, 2012 2,010,326 33,734,600

Issue of Shares During the Year - -

Sub-division of one (01) existng Ordinary Share into one hundred
and forty (140) Ordinary Shares on December 06, 2013 (Secton 10.2)
281,445,640 33,734,600
Balance as at December 31, 2013 281,445,640 33,734,600

Issue of Shares @ Rs. 14/- per Share under the Oer for
Subscripton tranche of the Oering contemplated through this
Prospectus

17,857,200

250,000,800

Balance immediately subsequent to the IPO 299,302,840 283,735,400


9.5 Litigation, Disputes and Contingent Liabilities
There are no material legal, arbitration or mediation proceedings pending against the Company that
would materially affect the financial position of future operations or profits of the Company. The
Company was not involved in any legal, arbitration or mediation proceedings in the recent past,
which has any significant effects on the Companys financial position or profitability.
As at December 31, 2013, there are no penalties imposed by any regulatory or state authority against
the Company.
The contingent liabilities as at December 31, 2013 on guarantees given by Alumex Limited and its
subsidiaries to third parties amounted to Rs. 6,888,885/- (2012 Rs. 4,192,385/-).
Company has received a claim from the Department of Labour for surcharge payments on the
grounds of delayed EPF contributions made to the Central Bank of Sri Lanka 9 years before, for a
value of Rs. 2,149,551/- and it is still being discussed with the Department of Labour and the Central
Bank of Sri Lanka. The abovementioned delayed EPF contribution occurred prior to Hayleys PLCs
acquisition of the Alumex Group.
There are no material contingent liabilities, except the above mentioned items, that would affect the
current and future profits of the Company as at December 31, 2013.
9.6 Mortgages and Charges on Assets
Details pertaining to mortgages and charges on assets of Alumex are disclosed in Note 28 of the
financial statements for the nine months ended December 31, 2013 presented in Section 16.4 of this
Prospectus.
9.7 Material Contracts
Hayleys PLC, the parent company charges, rent and allocation expenses to Alumex Limited and its
subsidiaries for the provision of services including sharing of information technology resources,
secretarial, corporate, tax and financial advisory, treasury, management audit, human resource
management, security, legal, corporate communication and for the deployment of Managing Director
to manage the Group. The estimated costs are invoiced and paid on monthly basis and actual
expenses are settled annually.
Aggregate payments made for the above services during the FY 2012/13 amounted to
Rs. 15,191,241/- and it is expected to be paid for similar services during the FY 2013/14 to an
approximate extent of Rs. 38,945,000/-.
Other than abovementioned, there are no other material contracts, except for those contracts
entered into in the ordinary course of business by Alumex.
9.8 Details of Commissions Paid
No commission has been paid in the two (02) years preceding the Offering or payable for subscribing
or agreeing to subscribe or procuring or agreeing to procure subscriptions for any Shares of the
Company.
9.9 Details of Benefits Paid to Promoters
No benefit has been paid or given within the two (02) years preceding the Offering and there are no
benefit intended to be paid or given to any promoter.


10.0 CAPITAL STRUCTURE

As at the date of this Prospectus, the Stated Capital of the Company is Sri Lanka Rupees Thirty Three
Million Seven Hundred Thirty Four Thousand Six Hundred (Rs. 33,734,600/-).
10.1 An Overview of the Stated Capital
An overview of the Stated Capital of the Company for the two (02) years ended March 31, 2013, nine
(09) months ended December 31, 2013 and subsequent to the IPO upon full subscripton of the Oer
for Subscripton tranche of the Oering is set forth below.
Table 10-1: Stated Capital of Alumex Limited

As at
March 31,
2011
As at
March 31,
2012
As at
March 31,
2013
As at
December 31,
2013
Subsequent to
the IPO
Consideraton for the
issue of Fully Paid
Ordinary Shares (Rs.)
20,000,100 33,734,600 33,734,600 33,734,600

283,735,400

Number of Ordinary
Shares
in Issue
2,000,010 2,010,326 2,010,326 281,445,640

299,302,840

Table 10-2: Changes in Stated Capital of Alumex Limited

Number of
Shares
Rs.
Balance as at April 01, 2011 2,000,010 20,000,100
Issue of Shares on March 02, 2012 @ Rs.1,331.38 per Share
(Issue of one (01) new Share for every sixty three (63) existng
Shares of Alutec Extrusions (Private) Limited by way of a share swap
in relaton to the consolidaton of operatons indicated in
Secton 7.13)
10,316 13,734,500

Issue of Shares During the Year - -

Sub-division of one (01) existng Ordinary Share into one hundred
and forty (140) Ordinary Shares on December 06, 2013 (Secton 10.2)
281,445,640 33,734,600
Balance as at December 31, 2013 281,445,640 33,734,600

Issue of Shares @ Rs. 14/- per Share under the Oer for
Subscripton tranche of the Oering contemplated through this
Prospectus

17,857,200

250,000,800

Balance immediately subsequent to the IPO 299,302,840 283,735,400


10.2 Share Split
The Board decided to sub-divide one (01) existng Ordinary Share into one hundred and forty (140)
Ordinary Shares on December 06, 2013 in order to increase the number of Shares with a view to
improve the liquidity.
10.3 Transfer of Shares of Alumex Limited
The Share transfers that were eected within the period of twelve (12) months preceding the date of
the Inital Listng Applicaton are presented below,
Table 10-3: Transfer of Shares by Shareholders
Name of Transferor Name of Transferee Date of Transfer
Number of
Shares
Price Per
Share
(Rs.)
Unifab Trading
(Private) Limited
Mr.Thirimanna Hetge Don
Ignatus Upali Thirimanne
June 06, 2013
7,936*
(prior to split)
1,331.27
Mr. D. W. P. N.
Dediwela
Hayleys PLC
December 31,
2013
3,330,800
(post split)
14.00
The 7,936 shares referred to above as transferred to Mr. T. H. D. I. U. Thirimanne is prior to the
share split which took place on December 06, 2013 as mentoned in Secton 10.2. Subsequent to
the share split, Mr. Thirimannes holding is 1,111,040 Shares.
The Shares that were acquired by the Shareholders by way of transfers as detailed in Table 10.3
above are subject to a lock-in period as morefully described in Secton 10.5 of this Prospectus.
Apart from those details mentoned in Table 10-3, no shares have been acquired by way of transfer
during the period of twelve (12) months immediately preceding the date on which the Inital Listng
Applicaton was submited to the CSE (i.e. January 23, 2014).
10.4 Shareholders of Alumex Limited
Tabulated below are the shareholders of the Company as at the date of the Prospectus and
subsequent to the Oering, assuming full subscripton.
Table 10-4: Shareholders of Alumex Limited
Prior to IPO Subsequent to IPO
Name of the Shareholder
Number of
Shares
Percentage of
Shareholding
Number of
Shares
Percentage of
Shareholding
Hayleys PLC 171,332,200 60.88% 152,644,500 51.00%
Rosewood (Private) Limited 38,500,000 13.68% 29,340,300 9.80%
Akbar Brothers (Private) Limited 38,500,000 13.68% 29,340,300 9.80%
Star Pack Investments (Private)
Limited
21,000,000 7.46% 16,003,700 5.35%
Mr. D.W.P.N. Dediwela 10,669,200 3.79% 10,669,200 3.56%
Mr. T.H.D.I.U. Thirimanne 1,111,040 0.39% 1,111,040 0.37%
Mr. J.M. Iqbal 222,180 0.08% 222,180 0.07%
Roshan Trading Company (Private)
Limited
111,020 0.04% 111,020 0.04%
IPO Investors 59,860,600 20.00%
Total 281,445,640 100.00% 299,302,840 100.00%


10.5 Details Pertaining to the locked-in Shares
Details pertaining to the locked-in Shares consttutng the public and non-public holding are given in
Table 10-5 below.
Table 10-5: Locked in Shareholders of Alumex Limited
Category of
Shareholder
(Pre Listng)
Date of
Acquisiton

Locked-in
Shares

The Time Period Afer
which the Shares will
be Available for
Trading
Number of
Shares
Number of
Shares as a
Percentage of
Total Number
of Shares in
Issue
Non Public
Prior to
January,
2011
Locked-in
Shares
6 months from
the date of listng
234,667,200 78.40%
December
31, 2013
Locked-in
Shares
12 months from
the date of acquisiton
(i.e. December 31, 2014)
3,330,800 1.11%
Public
June 06,
2013
Locked-in
Shares
6 months from
the date of listng
1,111,040

0.37%
Public
March 02,
2012
Not Locked-in
Shares
(Pre IPO Shares)
Not Applicable 333,200 0.11%

Not Locked-in
Shares
(Oered Shares)
Not Applicable 59,860,600 20.00%
Total 299,302,840 100.00%

The Company conrms that the informaton furnished herewith shall remain unchanged untl the
date of listng.
In terms of CSE Listng Rule 2.1.1 (d) (i), the Shares contnued to be held by the existng Non Public
shareholders, as dened in Secton 10.9, amountng to 234,667,200 Shares as shown in Table 10-5 of
this Prospectus, would be subject to a locked-in for a period of six (06) months as specied in the said
table from the date of listng, and as such these Shares would not be available for secondary market
trading on the CSE.
In terms of the CSE Listng Rule 2.1.1(d) (iii), the 7,936 Shares acquired by way of transfer on June 06,
2013 (which post-split amounts to 1,111,040 Shares) as morefully described in Secton 10.3, and
contnued to be held by a public shareholder would be locked-in for a period of six (06) months from
the date of Listng, and as such these Shares would not be available for secondary market trading on
the CSE.
In terms of the CSE Listng Rule 2.1.1(d) (iii), the 3,330,800 Shares acquired by way of transfer on
December 31, 2013, as morefully described in Secton 10.3, and contnued to be held by the
Non Public shareholder would be locked-in for a period of twelve (12) months from the date of
acquisiton of such Shares, and as such these Shares would not be available for secondary market
trading on the CSE.


10.5 Details Pertaining to the locked-in Shares
Details pertaining to the locked-in Shares consttutng the public and non-public holding are given in
Table 10-5 below.
Table 10-5: Locked in Shareholders of Alumex Limited
Category of
Shareholder
(Pre Listng)
Date of
Acquisiton

Locked-in
Shares

The Time Period Afer
which the Shares will
be Available for
Trading
Number of
Shares
Number of
Shares as a
Percentage of
Total Number
of Shares in
Issue
Non Public
Prior to
January,
2011
Locked-in
Shares
6 months from
the date of listng
234,667,200 78.40%
December
31, 2013
Locked-in
Shares
12 months from
the date of acquisiton
(i.e. December 31, 2014)
3,330,800 1.11%
Public
June 06,
2013
Locked-in
Shares
6 months from
the date of listng
1,111,040

0.37%
Public
March 02,
2012
Not Locked-in
Shares
(Pre IPO Shares)
Not Applicable 333,200 0.11%

Not Locked-in
Shares
(Oered Shares)
Not Applicable 59,860,600 20.00%
Total 299,302,840 100.00%

The Company conrms that the informaton furnished herewith shall remain unchanged untl the
date of listng.
In terms of CSE Listng Rule 2.1.1 (d) (i), the Shares contnued to be held by the existng Non Public
shareholders, as dened in Secton 10.9, amountng to 234,667,200 Shares as shown in Table 10-5 of
this Prospectus, would be subject to a locked-in for a period of six (06) months as specied in the said
table from the date of listng, and as such these Shares would not be available for secondary market
trading on the CSE.
In terms of the CSE Listng Rule 2.1.1(d) (iii), the 7,936 Shares acquired by way of transfer on June 06,
2013 (which post-split amounts to 1,111,040 Shares) as morefully described in Secton 10.3, and
contnued to be held by a public shareholder would be locked-in for a period of six (06) months from
the date of Listng, and as such these Shares would not be available for secondary market trading on
the CSE.
In terms of the CSE Listng Rule 2.1.1(d) (iii), the 3,330,800 Shares acquired by way of transfer on
December 31, 2013, as morefully described in Secton 10.3, and contnued to be held by the
Non Public shareholder would be locked-in for a period of twelve (12) months from the date of
acquisiton of such Shares, and as such these Shares would not be available for secondary market
trading on the CSE.


In terms of CSE Listing Rules 2.1.1(d) (ii), the Shares continued to be held by all existing public
shareholders [subject to CSE Listing Rule 2.1.1(d) (iii)], as defined in Section 10.9, namely the 333,200
Shares as shown in Table 10-5 of this Prospectus, would not be subject to a lock-in period. As such,
these Shares together with the Offered Shares aggregating to 20.11% of the overall Shares would be
available for secondary market trading on the CSE upon Alumex Limited obtaining the listing of its
Shares subsequent to the IPO contemplated via this Prospectus.
10.6 Details of Other Changes to Stated Capital
The Company has not carried out any redemption or repurchase of Shares or any reduction of Stated
Capital in the last two (02) years preceding the date of this Prospectus.
10.7 Details of Convertible Debt Securities
The Company has no outstanding convertible debt securities as at the date of this Prospectus.
10.8 Details of Shares Sold Privately in Conjunction with the Offering
No Shares are being offered privately in conjunction with this Offering.
10.9 Free Transferability of Shares
In accordance with CSE Listing Rules 2.1.1(d): in the event of an Offer for Subscription

(i) Subject to (iii) and (iv) below, shares held by Non Public Shareholders prior to the date of the
Initial Listing Application shall be locked-in for a period of six (06) months from the Date of Listing
the shares of the Entity.
(ii) Subject to (iii) and (iv) below, shares held by Public Shareholders prior to the date of the
Initial Listing Application shall not be locked-in.
(iii) Shares acquired by way of a transfer by Non Public Shareholders or Public Shareholders during
the period of twelve (12) months prior to the date of the Initial Listing Application shall be
locked in for a minimum period of six (06) months from the Date of Listing the shares of the Entity
or twelve (12) months from the date of acquisition of such shares, whichever is longer.
(iv) Shares allotted to Non Public Shareholders or Public Shareholders during the period of twelve
(12) months prior to the date of the Initial Listing Application shall be dealt with according to the
discretion vested in the SEC in terms of Section 28A of the SEC Act.

In accordance with CSE Listing Rules 2.1.1(e): in the event of an Offer for Sale;

(i) the shareholders who intend to divest their shareholding through the Initial Public Offering
should have held such shares for a minimum period of eighteen (18) months prior to the date
of the Initial Listing Application.
(ii) Subject to (iv) and (v) below, shares held by Non Public Shareholders prior to the date of the
Initial Listing Application, which have not been divested through the Initial Public Offering,
shall be locked-in for a period of six (06) months from the Date of Listing the shares of the
Entity.
(iii) Subject to (iv) and (v) below, shares held by Public Shareholders prior to the date of the
Initial Listing Application shall not be locked-in.
(iv) shares acquired by way of a transfer by Non Public Shareholders or Public Shareholders during
the period of twelve (12) months prior to the date of the Initial Listing Application shall be
locked-in for a minimum period of six (06) months from the Date of Listing the shares of the Entity
or twelve (12) months from the date of acquisition of such shares, whichever is longer.

(v) shares allotted to Non Public Shareholders or Public Shareholders during the period of
twelve (12) months prior to date of the Initial Listing Application shall be dealt with according
to the discretion vested in the SEC in terms of Section 28A of the SEC Act.
For the purpose of imposition of lock-in periods only, Non Public shareholders shall mean the
following parties who hold, directly or indirectly, shares of the company;
a. its parent, subsidiary or associate companies or any subsidiaries or associates of its parent
company;
b. its directors who are holding office as directors of the entity and their close family members;
c. Chief Executive Officer, his/her close family members;
d. Key Management Personnel and their close family members;
e. Any party acting in concert with the parties set out in a), b), c) or d) above; or
f. Any individual or company holding jointly or severally 5% or more of the share of the Company
Close Family Member shall mean the spouse or a financially dependent child.
Key Management Personnel shall mean those persons having authority and responsibility for
planning, directing and controlling the activities of the applicant Entity, directly or indirectly,
including any director (whether executive or otherwise) of that Entity.
Public shareholders shall mean any party who hold shares of the company other than the parties
identified as Non Public shareholders abovementioned.
The details of the lock-in periods for the Shares are mentioned in Table 10-5, and the Shares that will
be subject to a lock-in will not be available for trading.
Shares listed on the CSE shall be freely transferable and registration of the transfer of such listed
Shares shall not be subject to any restriction, save and except to the disclosure above and to the
extent required for compliance with statutory requirements.
10.10 Take-over Offers
There have been no take-over offers by third parties in respect of the Companys Shares during the
past two (02) years, preceding the date of this Prospectus.
The Company has not made any take-over offers in respect of Shares of a third party during the past
two (02) years preceding the date of this Prospectus except for the shares acquired as part of the
consolidation of operations of the Alumex Group as morefully described in Section 7.13.


(v) shares allotted to Non Public Shareholders or Public Shareholders during the period of
twelve (12) months prior to date of the Initial Listing Application shall be dealt with according
to the discretion vested in the SEC in terms of Section 28A of the SEC Act.
For the purpose of imposition of lock-in periods only, Non Public shareholders shall mean the
following parties who hold, directly or indirectly, shares of the company;
a. its parent, subsidiary or associate companies or any subsidiaries or associates of its parent
company;
b. its directors who are holding office as directors of the entity and their close family members;
c. Chief Executive Officer, his/her close family members;
d. Key Management Personnel and their close family members;
e. Any party acting in concert with the parties set out in a), b), c) or d) above; or
f. Any individual or company holding jointly or severally 5% or more of the share of the Company
Close Family Member shall mean the spouse or a financially dependent child.
Key Management Personnel shall mean those persons having authority and responsibility for
planning, directing and controlling the activities of the applicant Entity, directly or indirectly,
including any director (whether executive or otherwise) of that Entity.
Public shareholders shall mean any party who hold shares of the company other than the parties
identified as Non Public shareholders abovementioned.
The details of the lock-in periods for the Shares are mentioned in Table 10-5, and the Shares that will
be subject to a lock-in will not be available for trading.
Shares listed on the CSE shall be freely transferable and registration of the transfer of such listed
Shares shall not be subject to any restriction, save and except to the disclosure above and to the
extent required for compliance with statutory requirements.
10.10 Take-over Offers
There have been no take-over offers by third parties in respect of the Companys Shares during the
past two (02) years, preceding the date of this Prospectus.
The Company has not made any take-over offers in respect of Shares of a third party during the past
two (02) years preceding the date of this Prospectus except for the shares acquired as part of the
consolidation of operations of the Alumex Group as morefully described in Section 7.13.


11.0 MANAGEMENT DISCUSSION AND ANALYSIS

11.1 Summarised Financial Statements of Alumex Group for the Five Years Ended March 31, 2013
As mentoned in Secton 7.13, the Alumex Group comprised of six companies up to 2011. However,
with the consolidaton strategy initated in 2012, the group structure was simplied to three
companies comprising of a holding company and two fully owned subsidiaries in 2013.
Salient extracts from the Audited Income Statements and Statements of Financial Positon of Alumex
Group for the ve year period ended March 31, 2013 are presented below.
Table 11-1: Summarised Audited Income Statements of Alumex Group
All Figures in Rs. millions
For the Year Ended March 31,
2009 2010 2011 2012 2013
Restated Restated Restated
Revenue 1,859 1,593 2,280 2,190 2,430
Gross Prot 375 263 356 391 670
Operatng Prot 275 107 91* 178 416
Prot Before Tax 224 65 59 111 378
Prot Afer Tax 171 32 37 115 306

EPS (Rs.)** 0.61 0.11 0.13 0.41 1.09
DPS (Rs.)** 0.18 0.36 0.06 0.06 0.36

*Afer writng o Goodwill created through acquisiton of United Ceylon Insurance Company Limited amountng
to LKR 83mn.
**EPS and DPS are calculated based on the number of shares subsequent to the share split as described in
Secton 10.2.

Table 11-2: Summarised Audited Statements of Financial Positon of Alumex Group
As at March 31,
2009 2010 2011 2012 2013
Non-Current Assets 386 396 858 883 969
Current Assets 633 557 753 687 731
Total Assets 1,019 953 1,610 1,570 1,700

Equity 307 262 610 708 984
Non-Current Liabilites 105 124 248 205 186
Current Liabilities 607 567 752 656 530
Total Equity and Liabilites 1,019 953 1,610 1,570 1,700


Figure 11-3: Revenue Mix
Figure 11-4: Volume Mix

11.2 Performance of Alumex Group for the Five Years Ended March 31, 2013
11.2.1 Revenue
The following gures illustrate the revenue and the sales volume for the ve year period ended
March 31, 2013

Over the last 5 years, Alumex Group has recorded a CAGR of 7% in its revenue. In FY 2010/11,
subsequent to the acquisiton by Hayleys PLC, Alumex Group recorded a substantal increase in its
revenue due to the favourable economic conditons with the cession of conict in Sri Lanka. Marginal
reducton in revenue in FY 2011/12 was mainly due the global aluminium price reducton which was
negated up to a greater extent through increased volumes. Alumex Group started focusing on value
added products in FY 2012/13 which resulted in a Year-on-Year (YOY) revenue increase of 11%.
Further, the agreements with internatonally renowned fabricators such as AluK and Fletcher
Aluminium played a signicant role in the increase of Alumex Groups revenue in the recent years.
The following gures illustrate the revenue and the volume mix of Alumex for the ve year period
ended March 31, 2013.

Extrusion, anodizing, powder coatng and wood coatng are the major revenue segments of the
Alumex Group. The aluminium industry in Sri Lanka has experienced a shif in demand towards value
added products such as powder coated and wood coated products from anodized products, mainly
due to their durability and superior nish. Alumex capitalised on this shif in demand and has been
focusing on the value added products signicantly in the recent past. As a result, Alumex Group
recorded a contnuous increase in both revenue and volume growth of powder coatng and wood
coatng products.
Figure 11-1: Total Revenue

Figure 11-2: Total Sales Volume

11.0 MANAGEMENT DISCUSSION AND ANALYSIS

11.1 Summarised Financial Statements of Alumex Group for the Five Years Ended March 31, 2013
As mentoned in Secton 7.13, the Alumex Group comprised of six companies up to 2011. However,
with the consolidaton strategy initated in 2012, the group structure was simplied to three
companies comprising of a holding company and two fully owned subsidiaries in 2013.
Salient extracts from the Audited Income Statements and Statements of Financial Positon of Alumex
Group for the ve year period ended March 31, 2013 are presented below.
Table 11-1: Summarised Audited Income Statements of Alumex Group
For the Year Ended March 31,
2009 2010 2011 2012 2013
Revenue 1,859 1,593 2,280 2,190 2,430
Gross Prot 375 263 356 391 670
Operatng Prot 275 107 91* 178 416
Prot Before Tax 224 65 59 111 378
Prot Afer Tax 171 32 37 115 306

EPS (Rs.)** 0.61 0.11 0.13 0.41 1.09
DPS (Rs.)** 0.18 0.36 0.06 0.06 0.36

*Afer writng o Goodwill created through acquisiton of United Ceylon Insurance Company Limited amountng
to LKR 83mn.
**EPS and DPS are calculated based on the number of shares subsequent to the share split as described in
Secton 10.2.

Table 11-2: Summarised Audited Statements of Financial Positon of Alumex Group
As at March 31,
2009 2010 2011 2012 2013
Non-Current Assets 386 396 858 883 969
Current Assets 633 557 753 687 731
Total Assets 1,019 953 1,610 1,570 1,700

Equity 307 262 610 708 984
Non-Current Liabilites 105 124 248 205 186
Current Liabilities 607 567 752 656 530
Total Equity and Liabilites 1,019 953 1,610 1,570 1,700


Figure 11-3: Revenue Mix
Figure 11-4: Volume Mix

11.2 Performance of Alumex Group for the Five Years Ended March 31, 2013
11.2.1 Revenue
The following gures illustrate the revenue and the sales volume for the ve year period ended
March 31, 2013

Over the last 5 years, Alumex Group has recorded a CAGR of 7% in its revenue. In FY 2010/11,
subsequent to the acquisiton by Hayleys PLC, Alumex Group recorded a substantal increase in its
revenue due to the favourable economic conditons with the cession of conict in Sri Lanka. Marginal
reducton in revenue in FY 2011/12 was mainly due the global aluminium price reducton which was
negated up to a greater extent through increased volumes. Alumex Group started focusing on value
added products in FY 2012/13 which resulted in a Year-on-Year (YOY) revenue increase of 11%.
Further, the agreements with internatonally renowned fabricators such as AluK and Fletcher
Aluminium played a signicant role in the increase of Alumex Groups revenue in the recent years.
The following gures illustrate the revenue and the volume mix of Alumex for the ve year period
ended March 31, 2013.

Extrusion, anodizing, powder coatng and wood coatng are the major revenue segments of the
Alumex Group. The aluminium industry in Sri Lanka has experienced a shif in demand towards value
added products such as powder coated and wood coated products from anodized products, mainly
due to their durability and superior nish. Alumex capitalised on this shif in demand and has been
focusing on the value added products signicantly in the recent past. As a result, Alumex Group
recorded a contnuous increase in both revenue and volume growth of powder coatng and wood
coatng products.
Figure 11-1: Total Revenue

Figure 11-2: Total Sales Volume

11.2.2 Protability
The following gures illustrate the gross and net prots of Alumex Group along with the margins for
the ve year period ended March 31, 2013.

Alumex Group has been able to achieve a much steeper increase in its prot margins since 2011,
mainly due to the improvement in operatonal eciencies including ecient working capital
management. This was also facilitated by the consolidaton of operatons together with the
establishment of new management team by Hayleys PLC and the focus on value added products.
Moreover, in the Financial Year 2012/13, a signicant improvement in gross margin was recorded
compared to Financial Year 2011/12, mainly due to the decline in global aluminium prices and the
shif towards value added products as described in Secton 11.2.1.
The Group maintained a relatvely strong cash positon and a beter working capital management
during the period which resulted in a reducton of borrowings, further improving the net prot
margins.
11.3 Recent Performance of Alumex Group
Salient extracts from Income Statement and Statement of Financial Positon of Alumex Group
(reviewed by auditors) for the 9 month period ended December 31, 2013 along with the comparable
gures for the corresponding period in the Financial Year 2012/13 are presented below.
Table 11-3: Summarised Income Statements of Alumex Group
All gures in Rs. millions
For the Nine Months Ended December 31, 2012 2013
Revenue 1,772 1,984
Gross Prot 483 548
Operatng Prot 301 358
Prot Before Tax 266 348
Prot Afer Tax 217 283

Table 11-4: Summarised Statements of Financial Positon of Alumex Group
As at Mar 31, 2013 Dec 31, 2013
Non-Current Assets 969 944
Current Assets 731 954
Total Assets 1,700 1,898

Equity 984 1,110
Non-Current Liabilites 186 158
Current Liability 530 630
Total Equity and Liabilites 1,700 1,898
Figure 11-5: Gross Prot and Margin

Figure 11-6: Net Prot and Margin


11.2.2 Protability
the ve year period ended March 31, 2013.

Alumex Group has been able to achieve a much steeper increase in its prot margins since 2011,
mainly due to the improvement in operatonal eciencies including ecient working capital
management. This was also facilitated by the consolidaton of operatons together with the
establishment of new management team by Hayleys PLC and the focus on value added products.
Moreover, in the Financial Year 2012/13, a signicant improvement in gross margin was recorded
compared to Financial Year 2011/12, mainly due to the decline in global aluminium prices and the
shif towards value added products as described in Secton 11.2.1.
The Group maintained a relatvely strong cash positon and a beter working capital management
during the period which resulted in a reducton of borrowings, further improving the net prot
margins.
11.3 Recent Performance of Alumex Group
Salient extracts from Income Statement and Statement of Financial Positon of Alumex Group
(reviewed by auditors) for the 9 month period ended December 31, 2013 along with the comparable
gures for the corresponding period in the Financial Year 2012/13 are presented below.
Table 11-3: Summarised Income Statements of Alumex Group
For the Nine Months Ended December 31, 2012 2013
Revenue 1,772 1,984
Gross Prot 483 548
Operatng Prot 301 358
Prot Before Tax 266 348
Prot Afer Tax 217 283

Table 11-4: Summarised Statements of Financial Positon of Alumex Group
As at Mar 31, 2013 Dec 31, 2013
Non-Current Assets 969 944
Current Assets 731 954
Total Assets 1,700 1,898

Equity 984 1,110
Non-Current Liabilites 186 158
Current Liability 530 630
Total Equity and Liabilites 1,700 1,898
Figure 11-5: Gross Prot and Margin

Figure 11-6: Net Prot and Margin

11.3.1 Revenue
Alumex Group has recorded a substantal revenue growth by contnuously capitalising on value
added products, during the 9 month period ended December 31, 2013. Dominant market positon,
constructon industry boom and condence in the macroeconomic growth of the country were few
amongst the several macro factors which inuenced the growth in the revenue. Approximately 12%
revenue growth from last years comparable period shows the growth potental of Alumex Group and
increasing demand for its products.

The volume growth for power coated and wood coated products indicates the shif in demand for
the value added products as in recent years, which resulted in an increase in revenue growth for the
9 month period ended December 31, 2013.
11.3.2 Protability
the 9 month period ended December 31, 2013.

In comparison to the 9 months of the previous Financial Year, an exponental increase in gross prot
and net prot during the 9 months period ended December 31, 2013 has been recorded, resulting
from the increase in value added product sales as described above.
Figure 11-7: Revenue for Nine Months
Ended December 31, 2012 and 2013

Figure 11-8: Volume for Nine Months Ended
December 31, 2012 and 2013

Figure 11-9: Gross Prot for Nine Months
Ended December 31, 2012 and 2013

Figure 11-10: Net Prot for Nine Months Ended
December 31, 2012 and 2013


11.3.3 Gearing
Alumex Group currently has a strong balance sheet with low gearing. Lower gearing would enhance
its capacity to borrow if required, facilitatng further expansions in the future.
11.3.4 Asset Turnover
High non-current assets turnover rato and asset turnover rato demonstrate the ecient utlisaton
of the assets by Alumex Group. Non-current asset turnover rato of around 2.1 for the 9 month
period ended December 31, 2013 illustrates a healthy asset utlisaton of Alumex Group in the recent
past.
11.3.5 Key Financial Ratos

* Annualised

Table 11-5: Key Financial Ratios

FY 2012/13
2014 9M
Gross Prot Margin 27.56% 27.59%
Net Prot Margin 12.61% 14.26%
Return on Equity 36.20% 36.04%*
Return on Assets 18.74% 20.98%*
Current Rato 1.38 1.51
Gearing (LTL/TA) 23.06% 15.43%

11.3.3 Gearing
Alumex Group currently has a strong balance sheet with low gearing. Lower gearing would enhance
its capacity to borrow if required, facilitatng further expansions in the future.
11.3.4 Asset Turnover
High non-current assets turnover rato and asset turnover rato demonstrate the ecient utlisaton
of the assets by Alumex Group. Non-current asset turnover rato of around 2.1 for the 9 month
period ended December 31, 2013 illustrates a healthy asset utlisaton of Alumex Group in the recent
past.
11.3.5 Key Financial Ratos

* Annualised

Table 11-5: Key Financial Ratios

FY 2012/13
2014 9M
Gross Prot Margin 27.56% 27.59%
Net Prot Margin 12.61% 14.26%
Return on Equity 36.20% 36.04%*
Return on Assets 18.74% 20.98%*
Current Rato 1.38 1.51
Gearing (LTL/TA) 23.06% 15.43%

12.0 INVESTMENT CONSIDERATION AND ASSOCIATED RISKS

Prior to investing in the Shares Offered, prospective investors should pay particular attention to the
fact that Alumex Group is exposed to a number of risk factors, some of which are within and others
beyond the control of the management.
The risk factors which are discussed in this section may be considered material to investors in making
an informed judgment on the Company. Alumex Group operates in the aluminium extrusion sector
catering mainly to the construction sector. Therefore, the discussion below is focused on risks related
to these sectors. If any of the considerations and uncertainties given below develop into actual events,
business, financial conditions or results of operations and prospects of the Alumex Group could be
materially affected. Such an adverse effect will invariably lead to an adverse impact on the value of
the Shares.
12.1 Risks Relating to Macro-Environmental Factors
12.1.1 Adverse Global Aluminium Price Movements
Unexpected increases in aluminium prices can affect the demand for products. Decreases in prices
can affect the pricing of existing stocks and can reduce the margins. Alumex Group has a highly
skilled and experienced staff who continuously monitors the developments in the industry and assists
the Group in anticipating adverse price fluctuations. These developments are in turn considered in
the pricing of products, generally by all the players in the Sri Lankan market, hence, the risk of
reducing profit margins through adverse movement in global aluminium prices are limited.
12.1.2 Unfavourable Political and Economic Changes in Sri Lanka
Government exerts a substantial influence on many aspects of the economy. Business and financial
performance of Alumex Group could be affected by political instability of the country and the region.
Since the prospects of the construction sector is closely linked to Government policy on
infrastructure development and closely follows the fluctuations in economic conditions of the
country, an unstable political environment and adverse economic conditions may dampen the
demand for services provided by the Group. However, Sri Lanka has started reaping the benefits of
the current peaceful political environment conducive for higher future economic growth. Further, the
Government policy favours infrastructure development projects and it has been witnessed through
the launch of various aggressive infrastructure development programs with the assistance of foreign
governments and other donor agencies since the end of the war. Hence, Alumex Group is well poised
to benefit from the improved political and economic conditions in the country with its exposure to
the construction sector.
12.1.3 Exposure to Increased Competition in the Future
Alumex Group faces competition mainly from the local competitors in the industry. In addition, the
Group also faces competition from aluminium imports to the country. Alumex has a strong brand and
is the market leader for over a decade with a proven track record which would enable the Company
to withstand competitor pressure.
12.1.4 Adverse Changes to the Tax Regulations
Alumex enjoys a concessionary tax rate for its exports whilst its subsidiary, Alco enjoys a
concessionary tax rate on its profits till FY 2017/18 (refer Section 13.1). Any changes to these tax
regulations would affect the profitability of Alumex Group.

The Company also expects to receive the tax concession offered by the GoSL for entities obtaining a
listing on the CSE at the reduced rate of 50% corporate tax for the year of assessment in which the
shares of the Company are listed and for another two years in terms of Section 59(D) of the Inland
Revenue Act No. 10 of 2006 as amended by Act No. 18 of 2013, (available to companies listed on the
CSE prior to April 01, 2014). Any negative changes to this tax regulation and/or the inability of the
Company to meet the required conditions would lead to a reduction in the profitability of the
Company for the three years including the current financial year which otherwise would be at a
higher level.
12.1.5 Exchange Rate Risk
Sri Lankan rupee depreciation might influence the prices of Alumex products. Since Alumex operates
with forward booking of raw materials, the rupee equivalent of raw material price might change
based on the rupee depreciation. Depreciation of Sri Lankan rupee leads to exchange losses and may
reduce the profitability, if unable to pass on the cost of increase to the end consumers.
However, Alumex Group has experienced staff who continuously monitors the Sri Lankan rupee
depreciation and assists the Group in anticipating price fluctuations, when fixing the prices for raw
material.
12.2 Risks Relating to the Existing Businesses of Alumex Group
12.2.1 Uncertainties with the Procurement of Raw Material
Operations of Alumex Group is heavily dependent on the supply of its key raw material, aluminium.
At present, Alumex Group sources majority of its aluminium requirement from the DUBAL Group, a
global player in the aluminium industry. Delays and other disruptions in the supply of raw material
would lead to production delays by Alumex Group and may even lead to loss of key customers. This
may have a significant impact on the profitability of the Group. However, considering the fact that
Alumex sources its raw material through a reliable supplier, DUBAL, the risk of delays and other
disruptions are reduced. In the event of any disruption to DUBALs operations, Alumex maintains
over a months supply of its raw material and is in a position to source its supply through another
supplier minimising the impact on its operations.
12.2.2 Natural Perils
Natural disasters such as earthquakes, floods and tsunamis may delay and/or damage the
manufacturing process of the Alumex Group. Despite the necessary precautionary measures taken by
the Group, to minimise the damage from such conditions, vulnerability to such risks of natural
disasters is inevitable. However, the Group has obtained sufficient insurance covers in order to
reduce the risk of such damages and potential interruptions to the business operations, thus ensuring
business continuity with minimal delays.
12.2.3 Loss of Key Employees
The team of skilled and highly experienced professionals is a key competitive advantage of the Group
in providing a superior quality product and service to its customers. Loss of key staff to competitors
may lead to future loss of business and decline in quality of products and services. However, most of
the key employees have been with Alumex Group for almost the entirety of their careers indicating a
high level of loyalty. Most of the manufacturing processes do not require significant skill levels and
the possible impact on the profitability of Alumex due to this risk is minimal.


12.2.4 Operational Risks and Hazards to Staff
Due to the hazards inherent in the manufacturing facilities, such as risk of equipment failure,
collision, work accidents, fire or explosion etc., the workforce is exposed to hazards. Alumex Group
mitigates safety risks to the workforce by providing training on safety and adhering to the practices
on safety.
12.2.5 Regulatory Environment
The facility and operations of Alumex Group are subject to environmental regulations. However,
Alumex Group minimises this risk by treating all its affluent before disposal in according with the
environmental standards. In addition, Alumex being located within an industrial zone also reduces
any potential risk from the neighbourhood with regard to environmental aspects of the operations of
the Alumex Group.
12.3 Risks Relating to Future Plans
12.3.1 Competition
Alumex Group might have to confront with stiff competition from other local aluminium profile
manufacturers, if competitors reduce the selling prices to penetrate the local market. Further, the
competitors might shrink their operational margins and also can operate with losses to increase their
market shares.
Quality and long lasting products by Alumex Group exerts a significant control over its market share.
Furthermore, the low price competitors couldnt penetrate into Alumex Groups market in the past
(with the latest entrant entering the industry way back in year 2000) since, Alumex profiles were
considered to be superior and recommended by the renowned fabricators.
12.3.2 Risk with New Design
Global aluminium price fluctuations might impact the pricing of Alumex Groups products. Significant
price hikes will reduce the gross profit of the Group and result in lower return to the investors.
However, Alumex Group usually identifies the customer requirements in designing the new products.
Furthermore, through design centres and concept centres located at important locations around the
country will give the feel of exact customer requirement to the Alumex Group. In addition, the strong
marketing team is capable of maximising the sales whilst the island wide dealers are expected to give
access to a wider consumer base to sell its products.
12.3.3 Penetration of Regional Markets
In addition to its strong hold in the local market, Alumex Group presently operates with dealers in
India and Maldives, and plans to expand their business through a network of regional dealerships.
Therefore, the group has to compete with the existing players in the Indian and other regional
markets. Further, due to economics of scale and fierce competition in the Indian market, it might be
difficult for the Alumex Group to penetrate this segment easily and achieve satisfactory results in the
short to medium term.
However, without compromising its quality and creativity, Alumex Group plans to create a niche
market for its products and services which will mitigate the risk of stiff competition in the lower end
of the market. Furthermore, the presence of AluK and Fletcher Aluminium will support Alumex Group
in capturing contracts for large scale projects.

The Company also expects to receive the tax concession offered by the GoSL for entities obtaining a
listing on the CSE at the reduced rate of 50% corporate tax for the year of assessment in which the
shares of the Company are listed and for another two years in terms of Section 59(D) of the Inland
Revenue Act No. 10 of 2006 as amended by Act No. 18 of 2013, (available to companies listed on the
CSE prior to April 01, 2014). Any negative changes to this tax regulation and/or the inability of the
Company to meet the required conditions would lead to a reduction in the profitability of the
Company for the three years including the current financial year which otherwise would be at a
higher level.
12.1.5 Exchange Rate Risk
Sri Lankan rupee depreciation might influence the prices of Alumex products. Since Alumex operates
with forward booking of raw materials, the rupee equivalent of raw material price might change
based on the rupee depreciation. Depreciation of Sri Lankan rupee leads to exchange losses and may
reduce the profitability, if unable to pass on the cost of increase to the end consumers.
However, Alumex Group has experienced staff who continuously monitors the Sri Lankan rupee
depreciation and assists the Group in anticipating price fluctuations, when fixing the prices for raw
material.
12.2 Risks Relating to the Existing Businesses of Alumex Group
12.2.1 Uncertainties with the Procurement of Raw Material
Operations of Alumex Group is heavily dependent on the supply of its key raw material, aluminium.
At present, Alumex Group sources majority of its aluminium requirement from the DUBAL Group, a
global player in the aluminium industry. Delays and other disruptions in the supply of raw material
would lead to production delays by Alumex Group and may even lead to loss of key customers. This
may have a significant impact on the profitability of the Group. However, considering the fact that
Alumex sources its raw material through a reliable supplier, DUBAL, the risk of delays and other
disruptions are reduced. In the event of any disruption to DUBALs operations, Alumex maintains
over a months supply of its raw material and is in a position to source its supply through another
supplier minimising the impact on its operations.
12.2.2 Natural Perils
Natural disasters such as earthquakes, floods and tsunamis may delay and/or damage the
manufacturing process of the Alumex Group. Despite the necessary precautionary measures taken by
the Group, to minimise the damage from such conditions, vulnerability to such risks of natural
disasters is inevitable. However, the Group has obtained sufficient insurance covers in order to
reduce the risk of such damages and potential interruptions to the business operations, thus ensuring
business continuity with minimal delays.
12.2.3 Loss of Key Employees
The team of skilled and highly experienced professionals is a key competitive advantage of the Group
in providing a superior quality product and service to its customers. Loss of key staff to competitors
may lead to future loss of business and decline in quality of products and services. However, most of
the key employees have been with Alumex Group for almost the entirety of their careers indicating a
high level of loyalty. Most of the manufacturing processes do not require significant skill levels and
the possible impact on the profitability of Alumex due to this risk is minimal.


12.2.4 Operational Risks and Hazards to Staff
Due to the hazards inherent in the manufacturing facilities, such as risk of equipment failure,
collision, work accidents, fire or explosion etc., the workforce is exposed to hazards. Alumex Group
mitigates safety risks to the workforce by providing training on safety and adhering to the practices
on safety.
12.2.5 Regulatory Environment
The facility and operations of Alumex Group are subject to environmental regulations. However,
Alumex Group minimises this risk by treating all its affluent before disposal in according with the
environmental standards. In addition, Alumex being located within an industrial zone also reduces
any potential risk from the neighbourhood with regard to environmental aspects of the operations of
the Alumex Group.
12.3 Risks Relating to Future Plans
12.3.1 Competition
Alumex Group might have to confront with stiff competition from other local aluminium profile
manufacturers, if competitors reduce the selling prices to penetrate the local market. Further, the
competitors might shrink their operational margins and also can operate with losses to increase their
market shares.
Quality and long lasting products by Alumex Group exerts a significant control over its market share.
Furthermore, the low price competitors couldnt penetrate into Alumex Groups market in the past
(with the latest entrant entering the industry way back in year 2000) since, Alumex profiles were
considered to be superior and recommended by the renowned fabricators.
12.3.2 Risk with New Design
Global aluminium price fluctuations might impact the pricing of Alumex Groups products. Significant
price hikes will reduce the gross profit of the Group and result in lower return to the investors.
However, Alumex Group usually identifies the customer requirements in designing the new products.
Furthermore, through design centres and concept centres located at important locations around the
country will give the feel of exact customer requirement to the Alumex Group. In addition, the strong
marketing team is capable of maximising the sales whilst the island wide dealers are expected to give
access to a wider consumer base to sell its products.
12.3.3 Penetration of Regional Markets
In addition to its strong hold in the local market, Alumex Group presently operates with dealers in
India and Maldives, and plans to expand their business through a network of regional dealerships.
Therefore, the group has to compete with the existing players in the Indian and other regional
markets. Further, due to economics of scale and fierce competition in the Indian market, it might be
difficult for the Alumex Group to penetrate this segment easily and achieve satisfactory results in the
short to medium term.
However, without compromising its quality and creativity, Alumex Group plans to create a niche
market for its products and services which will mitigate the risk of stiff competition in the lower end
of the market. Furthermore, the presence of AluK and Fletcher Aluminium will support Alumex Group
in capturing contracts for large scale projects.

In addition, Alumex Group is presently negotiating with dealers who are well established in the
regional markets and will positively contribute to the increase in its regional sales.
12.4 Capital Market Related Risks
12.4.1 No Prior Market Exists for the Shares
Prior to the Offering, there has been no public market for the Companys Shares. There can be no
assurance that an active trading market for Shares will develop or if developed, will be sustained, or
that the market price of Shares shall not decline below the Share Offer Price. The Share Offer Price
may not be an indicative of the market price for the Companys Ordinary Shares after completion of
the Offering.
12.4.2 Price Volatility in the Secondary Market
The price of the Shares may fluctuate due to and not limited to the following: variations in operating
results, changes in operating environment and transitions in the regulatory front, technological
advancements/obsolescence, macroeconomic factors and external events. Price of Ordinary Shares
may follow general investor sentiment prevalent in the market at a given time. In addition, the price
of Shares in the market will fluctuate as a result of share trading volumes.
12.4.3 Shares May Not be a Suitable Investment for All Investors
Each potential investor in Shares must determine the suitability of that investment in light of its own
circumstances. In particular, each potential investor should:
have sufficient knowledge and experience to evaluate Shares, the merits and risks of investing in
Shares and the information contained or incorporated by reference in this Prospectus;
have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its
particular financial situation, an investment in Shares and the impact the Shares will have on its
overall investment portfolio;
have sufficient financial resources and liquidity to bear all of the risks of an investment in Shares,
including where the settlement currency is different from the currency in which such investors
principal financial activities are denominated;
understand thoroughly the terms of Shares and be familiar with any relevant indices and financial
markets; and
be able to evaluate (either alone or with the help of a financial advisor) possible scenarios for
economic, interest rate and other factors that may affect its investment and its ability to bear the
applicable risks.

13.0 TAXATION AND EXCHANGE CONTROL

The following information is an overview of selected taxation and other regulations that may be
relevant to Alumex Group and potential investors with regard to their investment and share
transactions in Sri Lanka. The discussion does not claim to be a comprehensive explanation of
applicable taxation regulations and considerations that pertain to Alumex Group and/or to the
purchase, ownership and disposition the Shares on Offer. Investors are advised to consult their own
advisors prior to investing in the Company and engaging in transactions related to the Offering.
13.1 Corporate Taxation
Alumex Limited
In accordance with the provisions of the Inland Revenue Act No. 10 of 2006 and subsequent
amendments, Alumex Limited is liable to corporate income tax at the rate of twelve per centum
(12%) of profits generated through qualified export sales, ten per centum (10%) of profits from
qualified undertaking and twenty eight per centum (28%) of profits generated through local sales and
other income.
In accordance with the provisions of the Inland Revenue Act No. 10 of 2006 section 17(a), profits
from qualified undertaking are exempted from tax for a period of five (05) years reckoned from the
commencement of the year of assessment in which the undertaking commences to make profits or
any year of assessment not later than two years reckoned from the date on which the undertaking
commences to carry on commercial operations, whichever is earlier. The five year tax exemptions
received by Alumex Limited expired in FY 2011/12, and as such the profits from this undertaking will
be taxed at ten per centum (10%) in FY 2013/14 and fifteen per centum (15%) in FY 2014/15.
Subsequently, profits from this qualified undertaking will be taxed at the normal corporate tax rate
prevailing in the respective years.
Pursuant to the agreement dated July 15, 2010 under Section 17 (2) of the Board of Investments Law
No. 04 of 1978, entered in to with the BOI, Alco Industries (Private) Limited is eligible for a tax
exemption period of five (05) years of profits of the company. The tax exemption period commenced
from the year of assessment of FY 2010/11 and would expire in FY 2014/15.
A concessionary tax rate of ten per centum (10%) would be applicable on profits for two (02) years
immediately succeeding the last date of the tax exemption period. Thereafter, twenty per centum
(20%) tax rate is applicable on profits.
Avro Enterprises (Private) Limited is liable to pay corporate income tax at the normal rate of twenty
eight per centum (28%) of its profits.
13.2 Economic Service Charge
In accordance with the Economic Service Charge Act No. 13 of 2006, as amended, Alco Industries
(Private) Limited is liable to pay Economic Service Charge (ESC) at the rate of zero decimal two five
per centum (0.25%) on income. Both Alumex Limited and Avro Enterprises (Private) Limited are not
liable for ESC.


In addition, Alumex Group is presently negotiating with dealers who are well established in the
regional markets and will positively contribute to the increase in its regional sales.
12.4 Capital Market Related Risks
12.4.1 No Prior Market Exists for the Shares
Prior to the Offering, there has been no public market for the Companys Shares. There can be no
assurance that an active trading market for Shares will develop or if developed, will be sustained, or
that the market price of Shares shall not decline below the Share Offer Price. The Share Offer Price
may not be an indicative of the market price for the Companys Ordinary Shares after completion of
the Offering.
12.4.2 Price Volatility in the Secondary Market
The price of the Shares may fluctuate due to and not limited to the following: variations in operating
results, changes in operating environment and transitions in the regulatory front, technological
advancements/obsolescence, macroeconomic factors and external events. Price of Ordinary Shares
may follow general investor sentiment prevalent in the market at a given time. In addition, the price
of Shares in the market will fluctuate as a result of share trading volumes.
12.4.3 Shares May Not be a Suitable Investment for All Investors
Each potential investor in Shares must determine the suitability of that investment in light of its own
circumstances. In particular, each potential investor should:
have sufficient knowledge and experience to evaluate Shares, the merits and risks of investing in
Shares and the information contained or incorporated by reference in this Prospectus;
have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its
particular financial situation, an investment in Shares and the impact the Shares will have on its
overall investment portfolio;
have sufficient financial resources and liquidity to bear all of the risks of an investment in Shares,
including where the settlement currency is different from the currency in which such investors
principal financial activities are denominated;
understand thoroughly the terms of Shares and be familiar with any relevant indices and financial
markets; and
be able to evaluate (either alone or with the help of a financial advisor) possible scenarios for
economic, interest rate and other factors that may affect its investment and its ability to bear the
applicable risks.

13.0 TAXATION AND EXCHANGE CONTROL

The following information is an overview of selected taxation and other regulations that may be
relevant to Alumex Group and potential investors with regard to their investment and share
transactions in Sri Lanka. The discussion does not claim to be a comprehensive explanation of
applicable taxation regulations and considerations that pertain to Alumex Group and/or to the
purchase, ownership and disposition the Shares on Offer. Investors are advised to consult their own
advisors prior to investing in the Company and engaging in transactions related to the Offering.
13.1 Corporate Taxation
Alumex Limited
In accordance with the provisions of the Inland Revenue Act No. 10 of 2006 and subsequent
amendments, Alumex Limited is liable to corporate income tax at the rate of twelve per centum
(12%) of profits generated through qualified export sales, ten per centum (10%) of profits from
qualified undertaking and twenty eight per centum (28%) of profits generated through local sales and
other income.
In accordance with the provisions of the Inland Revenue Act No. 10 of 2006 section 17(a), profits
from qualified undertaking are exempted from tax for a period of five (05) years reckoned from the
commencement of the year of assessment in which the undertaking commences to make profits or
any year of assessment not later than two years reckoned from the date on which the undertaking
commences to carry on commercial operations, whichever is earlier. The five year tax exemptions
received by Alumex Limited expired in FY 2011/12, and as such the profits from this undertaking will
be taxed at ten per centum (10%) in FY 2013/14 and fifteen per centum (15%) in FY 2014/15.
Subsequently, profits from this qualified undertaking will be taxed at the normal corporate tax rate
prevailing in the respective years.
Pursuant to the agreement dated July 15, 2010 under Section 17 (2) of the Board of Investments Law
No. 04 of 1978, entered in to with the BOI, Alco Industries (Private) Limited is eligible for a tax
exemption period of five (05) years of profits of the company. The tax exemption period commenced
from the year of assessment of FY 2010/11 and would expire in FY 2014/15.
A concessionary tax rate of ten per centum (10%) would be applicable on profits for two (02) years
immediately succeeding the last date of the tax exemption period. Thereafter, twenty per centum
(20%) tax rate is applicable on profits.
Avro Enterprises (Private) Limited is liable to pay corporate income tax at the normal rate of twenty
eight per centum (28%) of its profits.
13.2 Economic Service Charge
In accordance with the Economic Service Charge Act No. 13 of 2006, as amended, Alco Industries
(Private) Limited is liable to pay Economic Service Charge (ESC) at the rate of zero decimal two five
per centum (0.25%) on income. Both Alumex Limited and Avro Enterprises (Private) Limited are not
liable for ESC.


13.3 Value Added Tax
Alumex Limited and its subsidiary, Alco Industries (Private) Limited are liable to pay Value Added Tax
(VAT) on their revenue at the rate of twelve per centum (12%). Avro Enterprises (Private) Limited is
liable at the rate of twelve per centum (12%) only on the import and sale revenue under the Value
Added Tax Act No. 14 of 2002 and its subsequent amendments.
13.4 Nation Building Tax
In line with the Nation Building Tax Act No. 9 of 2009, Alumex Limited and its subsidiary, Alco
Industries (Private) Limited are liable to pay Nation Building Tax (NBT) at the rate of two per centum
(2%) on their revenue. Avro Enterprises (Private) Limited is not liable for NBT.
13.5 Withholding Tax on Dividends
In general, dividends distributed by resident companies out of taxable income to resident or
non-resident shareholders are subject to Withholding Tax (WHT) at the rate of ten per centum (10%).
The respective entities are required to deduct dividend tax at source and remit the same to the
Department of Inland Revenue. Alumex Limited and its subsidiaries are liable to WHT at rate of ten
per centum (10%). In the event, Alumex Limited pays a portion of its dividends out of the dividend
income received from its subsidiaries, the said WHT will not be deducted from that portion of the
dividends.
Other than the WHT referred to above, dividends paid to the shareholders of the Company will not
be subject to any other Sri Lankan tax.
13.6 Stamp Duty
Alumex Limited and its subsidiaries are liable to pay stamp duty at the rate of Rupees twenty five
(Rs. 25/-) for every Rupees twenty five thousand (Rs. 25,000/-) of receipts on credit sales and salary
payments.
The Company is also liable to pay stamp duty at the rate of Rupees five (Rs. 5/-) for every Rupees
thousand (Rs. 1,000/-) or part thereof of the aggregate value of the Shares, in respect of the Offering
contemplated through this Prospectus and on any new Shares that may be issued in the future in line
with current stamp duty regulations.
13.7 Share Transaction Levy
A transaction levy at the rate of zero decimal three per centum (0.3%) on the sales and purchases of
all share transactions is charged from both the buyer and the seller. This tax is part of the transaction
cost charged when trading shares on the CSE. Any profits from the sale of any share on which this tax
has been paid is exempt from income tax.
13.8 Exchange Control
The purchase and transfer of shares of a company incorporated in Sri Lanka by a person resident
outside Sri Lanka is governed by the Exchange Control Act No. 24 of 1953. Under permission granted
by the Controller of Exchange, a person resident outside of Sri Lanka may purchase or transfer up to
100% of the shares of a company subject to certain restrictions and conditions. In terms of the
restrictions, the purchase and transfer of shares of companies carrying on certain businesses are
prohibited (e.g. pawn broking, money lending) and permitted only up to a certain percentage of
shares in other businesses (e.g. shipping agents, freight forwarders).

Such restrictions do not apply to the business carried on by the Company. It is a condition however
that a non-resident must remit the payment for Shares through a SIA.
Payment for Shares may also be made through a FCBU account and through a
RGFCA/RGRCA-Investors by non-resident Sri Lankan citizens and/or foreign citizens resident in
Sri Lanka in terms of the applicable exchange control laws.
The operations of SIA, RGFCA and RGRCA-Investors are governed by the rules and regulations
formulated under the Exchange Control Act. In addition, RGFCA/ RGRCA-Investors is subject to the
regulations of CBSL and the Department of Immigration and Emigration.
Dividends and proceeds from the sale of shares can be remitted without exchange control permission
if the funds for purchase of the said shares have been affected through a SIA. However, if the funds
for purchase of the shares have been affected through a RGFCA/RGRCA-Investors, an approval from
the Controller of Exchange is required to remit the dividends and proceeds from the sale of shares.
All funds for purchase cost, brokering and bank charges including inward remittances and
repatriation of dividends and all credits, sales proceeds and dividend proceeds should be channelled
through the SIA. Remittances to SIA should be backed by documentary evidence of the transaction,
giving rise to the said remittance (i.e. dividend warrant, contract note). Such documentation should
be produced to the LCB at which the respective SIA is held. A tax clearance certificate from the
Department of Inland Revenue is not required for remittances in respect of remittance of dividends
and sales proceeds of shares held in listed companies.

13.3 Value Added Tax
Alumex Limited and its subsidiary, Alco Industries (Private) Limited are liable to pay Value Added Tax
(VAT) on their revenue at the rate of twelve per centum (12%). Avro Enterprises (Private) Limited is
liable at the rate of twelve per centum (12%) only on the import and sale revenue under the Value
Added Tax Act No. 14 of 2002 and its subsequent amendments.
13.4 Nation Building Tax
In line with the Nation Building Tax Act No. 9 of 2009, Alumex Limited and its subsidiary, Alco
Industries (Private) Limited are liable to pay Nation Building Tax (NBT) at the rate of two per centum
(2%) on their revenue. Avro Enterprises (Private) Limited is not liable for NBT.
13.5 Withholding Tax on Dividends
In general, dividends distributed by resident companies out of taxable income to resident or
non-resident shareholders are subject to Withholding Tax (WHT) at the rate of ten per centum (10%).
The respective entities are required to deduct dividend tax at source and remit the same to the
Department of Inland Revenue. Alumex Limited and its subsidiaries are liable to WHT at rate of ten
per centum (10%). In the event, Alumex Limited pays a portion of its dividends out of the dividend
income received from its subsidiaries, the said WHT will not be deducted from that portion of the
dividends.
Other than the WHT referred to above, dividends paid to the shareholders of the Company will not
be subject to any other Sri Lankan tax.
13.6 Stamp Duty
Alumex Limited and its subsidiaries are liable to pay stamp duty at the rate of Rupees twenty five
(Rs. 25/-) for every Rupees twenty five thousand (Rs. 25,000/-) of receipts on credit sales and salary
payments.
The Company is also liable to pay stamp duty at the rate of Rupees five (Rs. 5/-) for every Rupees
thousand (Rs. 1,000/-) or part thereof of the aggregate value of the Shares, in respect of the Offering
contemplated through this Prospectus and on any new Shares that may be issued in the future in line
with current stamp duty regulations.
13.7 Share Transaction Levy
A transaction levy at the rate of zero decimal three per centum (0.3%) on the sales and purchases of
all share transactions is charged from both the buyer and the seller. This tax is part of the transaction
cost charged when trading shares on the CSE. Any profits from the sale of any share on which this tax
has been paid is exempt from income tax.
13.8 Exchange Control
The purchase and transfer of shares of a company incorporated in Sri Lanka by a person resident
outside Sri Lanka is governed by the Exchange Control Act No. 24 of 1953. Under permission granted
by the Controller of Exchange, a person resident outside of Sri Lanka may purchase or transfer up to
100% of the shares of a company subject to certain restrictions and conditions. In terms of the
restrictions, the purchase and transfer of shares of companies carrying on certain businesses are
prohibited (e.g. pawn broking, money lending) and permitted only up to a certain percentage of
shares in other businesses (e.g. shipping agents, freight forwarders).

Such restrictions do not apply to the business carried on by the Company. It is a condition however
that a non-resident must remit the payment for Shares through a SIA.
Payment for Shares may also be made through a FCBU account and through a
RGFCA/RGRCA-Investors by non-resident Sri Lankan citizens and/or foreign citizens resident in
Sri Lanka in terms of the applicable exchange control laws.
The operations of SIA, RGFCA and RGRCA-Investors are governed by the rules and regulations
formulated under the Exchange Control Act. In addition, RGFCA/ RGRCA-Investors is subject to the
regulations of CBSL and the Department of Immigration and Emigration.
Dividends and proceeds from the sale of shares can be remitted without exchange control permission
if the funds for purchase of the said shares have been affected through a SIA. However, if the funds
for purchase of the shares have been affected through a RGFCA/RGRCA-Investors, an approval from
the Controller of Exchange is required to remit the dividends and proceeds from the sale of shares.
All funds for purchase cost, brokering and bank charges including inward remittances and
repatriation of dividends and all credits, sales proceeds and dividend proceeds should be channelled
through the SIA. Remittances to SIA should be backed by documentary evidence of the transaction,
giving rise to the said remittance (i.e. dividend warrant, contract note). Such documentation should
be produced to the LCB at which the respective SIA is held. A tax clearance certificate from the
Department of Inland Revenue is not required for remittances in respect of remittance of dividends
and sales proceeds of shares held in listed companies.

14.0 THE COLOMBO STOCK EXCHANGE

The information presented in this section has been extracted from or based on publicly available
documents/sources which have not been prepared or independently verified in connection with the
Offering. The information is included for the convenience of investors and is not intended to be a
complete description of the Sri Lankan capital market.
14.1 Governance
The CSE is a duly incorporated legal entity in the form of a company limited by guarantee and is
licensed by SEC to operate as a Stock Exchange. The board of directors of the exchange is the main
policy making body and consists of nine (09) directors out of which five (05) directors are elected by
broker firms of the CSE and the other four (04) directors appointed by the Minister of Finance.
The CSE is structured as a self-regulatory organisation and is a member of the World Federation of
Exchanges (WFE) and the South Asian Federation of Exchanges. The CSE provides the infrastructure
and the regulatory framework required for the trading of listed securities in Sri Lanka.
The CSE, a mutualised exchange has fifteen (15) members and thirteen (13) trading members at
present. Each member and trading member is licensed by the SEC to perform the duties of a
stockbroker. All members and trading members are corporate entities and in some cases, subsidiaries
of large financial conglomerates such as merchant, commercial and investment banks.
14.2 Branches of the CSE
The CSE at present operates with a network of seven branches in Matara, Kandy, Kurunegala,
Negombo, Jaffna, Anuradhapura and Ratnapura in addition to the Head Office in Colombo.
14.3 Stock Market Indices
The CSE currently maintains two price indices, All Share Index (ASI) and Standard & Poor's Sri Lanka
20 Index (S&P SL20), two total returns indices and 20 sector indices. The ASI tracks the movement of
all listed securities with a base index of 100 set in 1985. The S&P SL20, introduced in 2012, tracks
price changes of 20 listed securities, selected based on size as measured by float adjusted market
capitalization, liquidity as measured by the last six month daily average turnover and the number of
days traded, in addition to financial viability.
In January 2004, the CSE also launched total return indices designed to reflect both price changes and
dividend income. The ASI calculated on a total returns basis results in the All Share Total Return Index
(ASTRI). The recently launched S&P SL20 is also calculated and published on a total returns basis.
14.4 Trading on the CSE
The CSE operates as an order driven market using a fully automated screen based trading system and
a fully automated clearing and settlement system. Facilities for clearing and settlement of securities
are provided by the CDS which is a wholly owned subsidiary of the CSE. All parties wishing to trade on
the CSE must have CDS accounts.
14.5 Trading Sessions
Trading takes place in the CSE from 9.30 a.m. to 2.30 p.m. from Monday to Friday, except for public
and bank holidays. The trading session is divided into the following sessions.


14.0 THE COLOMBO STOCK EXCHANGE

The information presented in this section has been extracted from or based on publicly available
documents/sources which have not been prepared or independently verified in connection with the
Offering. The information is included for the convenience of investors and is not intended to be a
complete description of the Sri Lankan capital market.
14.1 Governance
The CSE is a duly incorporated legal entity in the form of a company limited by guarantee and is
licensed by SEC to operate as a Stock Exchange. The board of directors of the exchange is the main
policy making body and consists of nine (09) directors out of which five (05) directors are elected by
broker firms of the CSE and the other four (04) directors appointed by the Minister of Finance.
The CSE is structured as a self-regulatory organisation and is a member of the World Federation of
Exchanges (WFE) and the South Asian Federation of Exchanges. The CSE provides the infrastructure
and the regulatory framework required for the trading of listed securities in Sri Lanka.
The CSE, a mutualised exchange has fifteen (15) members and thirteen (13) trading members at
present. Each member and trading member is licensed by the SEC to perform the duties of a
stockbroker. All members and trading members are corporate entities and in some cases, subsidiaries
of large financial conglomerates such as merchant, commercial and investment banks.
14.2 Branches of the CSE
The CSE at present operates with a network of seven branches in Matara, Kandy, Kurunegala,
Negombo, Jaffna, Anuradhapura and Ratnapura in addition to the Head Office in Colombo.
14.3 Stock Market Indices
The CSE currently maintains two price indices, All Share Index (ASI) and Standard & Poor's Sri Lanka
20 Index (S&P SL20), two total returns indices and 20 sector indices. The ASI tracks the movement of
all listed securities with a base index of 100 set in 1985. The S&P SL20, introduced in 2012, tracks
price changes of 20 listed securities, selected based on size as measured by float adjusted market
capitalization, liquidity as measured by the last six month daily average turnover and the number of
days traded, in addition to financial viability.
In January 2004, the CSE also launched total return indices designed to reflect both price changes and
dividend income. The ASI calculated on a total returns basis results in the All Share Total Return Index
(ASTRI). The recently launched S&P SL20 is also calculated and published on a total returns basis.
14.4 Trading on the CSE
The CSE operates as an order driven market using a fully automated screen based trading system and
a fully automated clearing and settlement system. Facilities for clearing and settlement of securities
are provided by the CDS which is a wholly owned subsidiary of the CSE. All parties wishing to trade on
the CSE must have CDS accounts.
14.5 Trading Sessions
Trading takes place in the CSE from 9.30 a.m. to 2.30 p.m. from Monday to Friday, except for public
and bank holidays. The trading session is divided into the following sessions.


Pre-Open
During pre-open session (9.00 a.m. to 9.30 a.m.), the system accepts orders. These orders can be
amended and cancelled during pre-open. However, no trades take place during this session. Orders
during this period are held in the Automated Trading System (ATS) and will be forwarded to the
executon engine at the beginning of the open aucton session.
Open Aucton
During the open aucton session (9.30 a.m.), the system temporarily closes the order book and starts
matching orders. It establishes the opening prices of securites and determines the orders to be
executed according to the ATS rules applicable for the open aucton period.
Regular Trading
During regular trading session (9.30 a.m. to 2.30 p.m.), new orders are contnually matched to
existng orders in the order book. If an order cannot be executed, it may be stored in the order book,
depending on the type of the order.

14.6 Setlement Procedure
Equity transactons must be setled within three days from the trade date (T+3) for both the buyers
and sellers.
14.7 Transacton Costs
Transacton cost breakup of the CSE is depicted below.
Table 14-1: Transacton Costs

On Transactons
Up to Rs. 50 million
On Transactons
Over Rs. 50 million
Brokerage Fees 0.6400%
Negotable subject to
a minimum of 0.2000%
SEC Cess 0.0720% 0.0450%
CSE Fees 0.0840% 0.0525%
CDS Fees 0.0240% 0.0150%
Share Transacton Levy 0.3000% 0.3000%
Total 1.1200% 0.6125%*

*Based on the minimum Brokerage Fees

Note that the transacton fee due to the broker, CSE, CDS and SEC on intra day trades, where a client
buys and sells or sells and buys the same security on the same day, through the same broker will not
be charged on one side of the transacton involving lower of the value.


14.8 Recent Performance
Post War Developments
After the cessation of the three decade long war in May 2009, the country stepped into a new era of
economic development. The capital market too bounced back strongly following a tranquil period in
the previous couple of years, mainly due to renewed investor confidence on business prospects as
well as discouraged fixed income investments following the reduction in interest rates. The CSE
experienced some volatility during the first four months of the year 2009 as the war was at its height.
However, the indices began to surge from May 2009 marking positive sentiments in many indices in
the CSE. ASI rose by a record 125% in 2009 in comparison to a decline of 41% and 7% in 2008 and
2007 respectively. Further, the market capitalisation more than doubled and crossed the Rs. 1 trillion
mark, closing the year 2009 at Rs. 1,092 billion in comparison with Rs. 489 billion reported at the end
of 2008, highlighting positive investor sentiment.
Further, in year 2009, the CSE achieved the highest turnover for a given year by recording Rs. 142
billion in year 2009, compared to its previously recorded highest of Rs. 114.6 billion in 2005 marking
aggressive investor appetite in the Colombo bourse. The trailing market PER which was 5.4 at the end
of 2008 moved up to 16.6 at the end of year 2009 indicating the constructive outlook of the equity
market. The above robust performance of the equity market was mainly attributable to the
containment of domestic inflationary pressures, a lower interest rate environment, and a regaining
economy. Subsequent to these commendable performances cited in year 2009, the CSE was
acknowledged as the second best performing stock market in the world by Bloomberg News.
According to the market highlights published by WFE, the CSE ranked first among the top ten
performing broad market indices in the first-half of 2010, recording a growth of 89.7%, in comparison
to the corresponding period in 2009. Both ASI and MPI indices continued on its upward momentum
and surpassed the 7,000 notch for the first time in the history of the capital market on October 01,
2010. Year 2010 witnessed, the highest in terms of turnover and cumulative trades recorded for a
year amongst other statistics whilst the market capitalisation too recording its highest surpassing the
record figures reported in year 2009. At the end of 2010, the benchmark ASI recorded a growth of
96.01% while MPI grew by 83.44% closing out ASI and MPI at 6,635.87 and 7,061.46 respectively.
Eight IPOs were introduced to the market with a total of approximately Rs. 4.3 billion being raised
from new issues signifying the willingness of new companies to establish their presence in the CSE.
2011
Several rules and regulations were imposed in 2011 to clamp down on the use of excessive credit
when applying for IPOs and the exposure of the countrys financial system to the equity market. This
was enacted through a Directive issued by CBSL to all banks where limitations were imposed on the
issue of granting guarantees for the purpose of applying for IPOs. Furthermore, the SEC issued
another Directive on March 10, 2011 specifying a minimum allocation of 40% of the shares of an IPO
to retail individual investors (individual investors who subscribe for a maximum of 3,000 shares or Rs.
100,000 in a particular share class, whichever is higher) and 10% to unit trusts. The above
regulations, whilst disciplining the entire market led to lacklustre investor behaviour resulting in
continuously declining indices. The ASI, which recorded its highest ever value of 7,811.82 on February
14, 2011, started its decline signalling a much awaited market correction.


Several other prominent factors which contributed to the gradual decline in the indices were the
spate of IPOs, which drew significant amounts of liquidity away from the secondary market, and also
the plethora of rights issues which attracted significant amounts of funds from the investors. The
rights issues carried out by the banking sector, whilst being significant in size, were an absolute
necessity in the light of the significant growth rates recorded in their respective loan books and
hence, gave rise to the need to recapitalise. In August 2011, the SEC, at the request of stockbroker
firms, made a decision to permit licensed stockbroker firms to grant credit based on their liquid asset
holdings, subject to meeting certain prudential requirements. The market viewed this as a
progressive step by the regulator and reacted positively.
On September 14, 2011, the SEC brought in a new Directive to ensure that entities that make an
Initial Listing Application of a particular share class, a minimum allotment of 40% of the offered
shares or shares to the maximum value of Rs. 1.5 billion whichever is lower, are to be initially made
available for allotment to Retail Individual Investor Category. With a view to facilitate fair allotment
of shares to the Retail Individual Investor Category in large scale IPOs, the definition of Retail
Individual Investors was revised to accommodate subscription up to a value of Rs. 200,000/- in case
of IPOs with a value of Rs. 3 billion or above. Further, as per the above Directive, smaller subscribers
within the Retail Individual Investor Category are to be given priority in determining the basis of
allotment in an IPO.
2012
The MPI was discontinued at the dawn of 2012 with the CSE and S&P Dow Jones Indices jointly
launching the S&P SL20 Index, a transparent and robust index conforming to global best practices.
The index, now representing a larger portion of the market than its predecessor, was lauded by both
domestic and global investors as a credible and investible index. With the SECs decision to relax
credit rules much to the delight of stockbrokers, market watchers began the year optimistically,
hopeful of a turnaround in the markets prospects. However, CBSLs decision to shift from a fixed
exchange rate to a managed exchange rate regime resulted in a sharp depreciation of the Rupee
which was mirrored by the ASI sharply looming to 5,000 levels.
On March 02, 2012, SEC issued a directive introducing additional conditions to the general listing
requirements. Barring application received before March 31, 2012, listing through introduction was
eliminated as a method of listing on the CSE. Lock-in rules for shareholders of companies at the time
of listing was also introduced for the first time via the aforementioned directive in order to safeguard
the interests of the IPO investors. The first IPO for 2012 took place towards the latter part of the first
quarter amidst dull sentiment among equity investors. The interest witnessed in the IPO and the
credible performance of the stock during its opening week however was surprisingly contrary to such
sentiments. A further five companies debuted on the CSE in 2012, raising a total of Rs. 1.7 billion
whilst eleven companies listed equity via introductions and Rs. 11.1 billion was raised through rights
issues.


14.8 Recent Performance
Post War Developments
After the cessation of the three decade long war in May 2009, the country stepped into a new era of
economic development. The capital market too bounced back strongly following a tranquil period in
the previous couple of years, mainly due to renewed investor confidence on business prospects as
well as discouraged fixed income investments following the reduction in interest rates. The CSE
experienced some volatility during the first four months of the year 2009 as the war was at its height.
However, the indices began to surge from May 2009 marking positive sentiments in many indices in
the CSE. ASI rose by a record 125% in 2009 in comparison to a decline of 41% and 7% in 2008 and
2007 respectively. Further, the market capitalisation more than doubled and crossed the Rs. 1 trillion
mark, closing the year 2009 at Rs. 1,092 billion in comparison with Rs. 489 billion reported at the end
of 2008, highlighting positive investor sentiment.
Further, in year 2009, the CSE achieved the highest turnover for a given year by recording Rs. 142
billion in year 2009, compared to its previously recorded highest of Rs. 114.6 billion in 2005 marking
aggressive investor appetite in the Colombo bourse. The trailing market PER which was 5.4 at the end
of 2008 moved up to 16.6 at the end of year 2009 indicating the constructive outlook of the equity
market. The above robust performance of the equity market was mainly attributable to the
containment of domestic inflationary pressures, a lower interest rate environment, and a regaining
economy. Subsequent to these commendable performances cited in year 2009, the CSE was
acknowledged as the second best performing stock market in the world by Bloomberg News.
According to the market highlights published by WFE, the CSE ranked first among the top ten
performing broad market indices in the first-half of 2010, recording a growth of 89.7%, in comparison
to the corresponding period in 2009. Both ASI and MPI indices continued on its upward momentum
and surpassed the 7,000 notch for the first time in the history of the capital market on October 01,
2010. Year 2010 witnessed, the highest in terms of turnover and cumulative trades recorded for a
year amongst other statistics whilst the market capitalisation too recording its highest surpassing the
record figures reported in year 2009. At the end of 2010, the benchmark ASI recorded a growth of
96.01% while MPI grew by 83.44% closing out ASI and MPI at 6,635.87 and 7,061.46 respectively.
Eight IPOs were introduced to the market with a total of approximately Rs. 4.3 billion being raised
from new issues signifying the willingness of new companies to establish their presence in the CSE.
2011
Several rules and regulations were imposed in 2011 to clamp down on the use of excessive credit
when applying for IPOs and the exposure of the countrys financial system to the equity market. This
was enacted through a Directive issued by CBSL to all banks where limitations were imposed on the
issue of granting guarantees for the purpose of applying for IPOs. Furthermore, the SEC issued
another Directive on March 10, 2011 specifying a minimum allocation of 40% of the shares of an IPO
to retail individual investors (individual investors who subscribe for a maximum of 3,000 shares or Rs.
100,000 in a particular share class, whichever is higher) and 10% to unit trusts. The above
regulations, whilst disciplining the entire market led to lacklustre investor behaviour resulting in
continuously declining indices. The ASI, which recorded its highest ever value of 7,811.82 on February
14, 2011, started its decline signalling a much awaited market correction.


Several other prominent factors which contributed to the gradual decline in the indices were the
spate of IPOs, which drew significant amounts of liquidity away from the secondary market, and also
the plethora of rights issues which attracted significant amounts of funds from the investors. The
rights issues carried out by the banking sector, whilst being significant in size, were an absolute
necessity in the light of the significant growth rates recorded in their respective loan books and
hence, gave rise to the need to recapitalise. In August 2011, the SEC, at the request of stockbroker
firms, made a decision to permit licensed stockbroker firms to grant credit based on their liquid asset
holdings, subject to meeting certain prudential requirements. The market viewed this as a
progressive step by the regulator and reacted positively.
On September 14, 2011, the SEC brought in a new Directive to ensure that entities that make an
Initial Listing Application of a particular share class, a minimum allotment of 40% of the offered
shares or shares to the maximum value of Rs. 1.5 billion whichever is lower, are to be initially made
available for allotment to Retail Individual Investor Category. With a view to facilitate fair allotment
of shares to the Retail Individual Investor Category in large scale IPOs, the definition of Retail
Individual Investors was revised to accommodate subscription up to a value of Rs. 200,000/- in case
of IPOs with a value of Rs. 3 billion or above. Further, as per the above Directive, smaller subscribers
within the Retail Individual Investor Category are to be given priority in determining the basis of
allotment in an IPO.
2012
The MPI was discontinued at the dawn of 2012 with the CSE and S&P Dow Jones Indices jointly
launching the S&P SL20 Index, a transparent and robust index conforming to global best practices.
The index, now representing a larger portion of the market than its predecessor, was lauded by both
domestic and global investors as a credible and investible index. With the SECs decision to relax
credit rules much to the delight of stockbrokers, market watchers began the year optimistically,
hopeful of a turnaround in the markets prospects. However, CBSLs decision to shift from a fixed
exchange rate to a managed exchange rate regime resulted in a sharp depreciation of the Rupee
which was mirrored by the ASI sharply looming to 5,000 levels.
On March 02, 2012, SEC issued a directive introducing additional conditions to the general listing
requirements. Barring application received before March 31, 2012, listing through introduction was
eliminated as a method of listing on the CSE. Lock-in rules for shareholders of companies at the time
of listing was also introduced for the first time via the aforementioned directive in order to safeguard
the interests of the IPO investors. The first IPO for 2012 took place towards the latter part of the first
quarter amidst dull sentiment among equity investors. The interest witnessed in the IPO and the
credible performance of the stock during its opening week however was surprisingly contrary to such
sentiments. A further five companies debuted on the CSE in 2012, raising a total of Rs. 1.7 billion
whilst eleven companies listed equity via introductions and Rs. 11.1 billion was raised through rights
issues.


Negative market events led to the SEC introducing more stringent trading measures for market
insiders. Further, CBSLs decision to maintain elevated policy rates to limit excessive credit growth
lured investors towards more attractive and stable fixed income securities. The resultant effect of
such actions saw the ASI falling to its lowest level of 4738 in 2012. In September 2012, the ASI
managed to regain some of its momentum seen previously with increased activity pushing the index
above the 5,900 levels. With the outbreak of several positive news during the year i.e. SECs decision
to relax several regulations, including lifting the 20% upper price limit on off market deals set
previously during the year as well as lifting the revised 10% price band imposed on all listed
securities, coupled with an encouraging budget proposal offering several concessions for the
development of the capital markets and CBSLs decision to reduce policy rates by 25 basis points, the
ASI closed at 5,643 reducing its loss to 7.1%.
2013
2013 was seen as the minor yet noteworthy revival of the local debt market. Tax concessions offered
by the GoSL resulted in an influx of debenture issues raising funds of Rs. 68.3 billion. Despite liquidity
being drawn away from the equity market, the ASPI and S&P SL20 recorded returns of 4.8% and 5.8%
respectively. Throughout the year, market activity was dominated by the high net worth, institutional
and foreign investors. The lack of retail investor participation however led to reduced turnover and
activity levels. CBSL remained aggressive in 2013, reducing policy rates by an aggregate 125 basis
points. The anticipated dip in treasury yields however did not materialize, having an adverse effect
on the equity market.
Through a directive issued by the SEC on October 11, 2013, public holding requirement on the Diri
Savi Board was amended to have a minimum public holding of 10% of the total number of shares at
the time of listing to be held by a minimum 200 shareholders. SEC maintained its firm grip as
regulator of the CSE by way of issuing such directives, including modifications to the lock-in
requirements introduced in 2012. Listing on the CSE by way of introduction was reintroduced by SEC
following public and stakeholder consultation. Under the new directive issued on October 11, 2013,
the eligibility criteria for entities seeking a listing on the Diri Savi Board by way of introduction to
reflect that, not more than 50% of the shares in the hands of the public shareholders at the time of
listing should be held by the three largest public shareholders. The directive issued further
elaborated on tighter lock-in periods for shares held prior to a listing via introduction.
In view of offering investors island wide better education and investment opportunities in shares and
corporate debt, the CSE expanded its reach to seven locations by opening two branches in
Anuradhapura and Ratnapura in 2013. CSE witnessed only one IPO during the year amounting to
Rs 494 million. Conversely, the largest rights issue in the country amounting to Rs. 23.1 billion took
place during the year making significant strides in the market. Market PE and PBV stood at 15.92x
and 1.96x respectively, while CSE remained relatively undervalued compared to several of its regional
counterparts.
With positive returns witnessed in 2013 and the abovementioned undervaluation of the market, it is
noteworthy that the companies listed on the CSE have recorded extremely strong growth and
reported healthy financial performance and stability. Therefore, given the strong macroeconomic
fundamentals and the favourable business environment, the market is poised to tread into a new
phase of sustainable growth in the long run. This in turn would facilitate a solid platform for new
companies to enter into the capital market to fulfil their funding needs.


The table below provides market related statstcs for the 2009 to 2013.
Table 14-2: Stock Market Statstcs 2009 2013

Period (Year) 2009 2010 2011 2012 2013
Cumulatve Turnover (Rs. Mn) 142,463 570,327 546,256 213,827 200,468
Average Daily Turnover (Rs. Mn) 594 2,396 2,286 884 828
Cumulatve Trades 1,266,299 3,355,126 4,579,352 1,857,384 1,421,303
Listed Companies 231 241 272 287 289
Foreign Turnover as Percentage of Total
Turnover (%)
31 19 11 25 36
Net Foreign Flow (Rs. Mn) (789) (26,335) (19,039) 38,660 22,734
Cumulatve Foreign Purchases (Rs. Mn) 43,057 92,426 49,777 72,614 83,607
Cumulatve Foreign Sales (Rs. Mn) 43,846 118,761 68,816 33,954 60,873
CSE All Share Index 3,386 6,636 6,074 5,643 5,913
CSE Milanka Price Index 3,849 7,061 5,229 5,119 -
CSE S&P SL20 Price Index - - - 3,085 3,264
Market Capitalisaton (Rs. Bn) 1,092 2,210 2,214 2,168 2,460
Trailing Market Price Earnings Rato (x) 16.6 25.2 15.8 15.9 15.9
Market Dividend Yield (%) 3.0 1.2 1.8 2.4 2.9
Number of IPOs 2 8 13 6 1


Negative market events led to the SEC introducing more stringent trading measures for market
insiders. Further, CBSLs decision to maintain elevated policy rates to limit excessive credit growth
lured investors towards more attractive and stable fixed income securities. The resultant effect of
such actions saw the ASI falling to its lowest level of 4738 in 2012. In September 2012, the ASI
managed to regain some of its momentum seen previously with increased activity pushing the index
above the 5,900 levels. With the outbreak of several positive news during the year i.e. SECs decision
to relax several regulations, including lifting the 20% upper price limit on off market deals set
previously during the year as well as lifting the revised 10% price band imposed on all listed
securities, coupled with an encouraging budget proposal offering several concessions for the
development of the capital markets and CBSLs decision to reduce policy rates by 25 basis points, the
ASI closed at 5,643 reducing its loss to 7.1%.
2013
2013 was seen as the minor yet noteworthy revival of the local debt market. Tax concessions offered
by the GoSL resulted in an influx of debenture issues raising funds of Rs. 68.3 billion. Despite liquidity
being drawn away from the equity market, the ASPI and S&P SL20 recorded returns of 4.8% and 5.8%
respectively. Throughout the year, market activity was dominated by the high net worth, institutional
and foreign investors. The lack of retail investor participation however led to reduced turnover and
activity levels. CBSL remained aggressive in 2013, reducing policy rates by an aggregate 125 basis
points. The anticipated dip in treasury yields however did not materialize, having an adverse effect
on the equity market.
Through a directive issued by the SEC on October 11, 2013, public holding requirement on the Diri
Savi Board was amended to have a minimum public holding of 10% of the total number of shares at
the time of listing to be held by a minimum 200 shareholders. SEC maintained its firm grip as
regulator of the CSE by way of issuing such directives, including modifications to the lock-in
requirements introduced in 2012. Listing on the CSE by way of introduction was reintroduced by SEC
following public and stakeholder consultation. Under the new directive issued on October 11, 2013,
the eligibility criteria for entities seeking a listing on the Diri Savi Board by way of introduction to
reflect that, not more than 50% of the shares in the hands of the public shareholders at the time of
listing should be held by the three largest public shareholders. The directive issued further
elaborated on tighter lock-in periods for shares held prior to a listing via introduction.
In view of offering investors island wide better education and investment opportunities in shares and
corporate debt, the CSE expanded its reach to seven locations by opening two branches in
Anuradhapura and Ratnapura in 2013. CSE witnessed only one IPO during the year amounting to
Rs 494 million. Conversely, the largest rights issue in the country amounting to Rs. 23.1 billion took
place during the year making significant strides in the market. Market PE and PBV stood at 15.92x
and 1.96x respectively, while CSE remained relatively undervalued compared to several of its regional
counterparts.
With positive returns witnessed in 2013 and the abovementioned undervaluation of the market, it is
noteworthy that the companies listed on the CSE have recorded extremely strong growth and
reported healthy financial performance and stability. Therefore, given the strong macroeconomic
fundamentals and the favourable business environment, the market is poised to tread into a new
phase of sustainable growth in the long run. This in turn would facilitate a solid platform for new
companies to enter into the capital market to fulfil their funding needs.


The table below provides market related statstcs for the 2009 to 2013.
Table 14-2: Stock Market Statstcs 2009 2013

Period (Year) 2009 2010 2011 2012 2013
Cumulatve Turnover (Rs. Mn) 142,463 570,327 546,256 213,827 200,468
Average Daily Turnover (Rs. Mn) 594 2,396 2,286 884 828
Cumulatve Trades 1,266,299 3,355,126 4,579,352 1,857,384 1,421,303
Listed Companies 231 241 272 287 289
Foreign Turnover as Percentage of Total
Turnover (%)
31 19 11 25 36
Net Foreign Flow (Rs. Mn) (789) (26,335) (19,039) 38,660 22,734
Cumulatve Foreign Purchases (Rs. Mn) 43,057 92,426 49,777 72,614 83,607
Cumulatve Foreign Sales (Rs. Mn) 43,846 118,761 68,816 33,954 60,873
CSE All Share Index 3,386 6,636 6,074 5,643 5,913
CSE Milanka Price Index 3,849 7,061 5,229 5,119 -
CSE S&P SL20 Price Index - - - 3,085 3,264
Market Capitalisaton (Rs. Bn) 1,092 2,210 2,214 2,168 2,460
Trailing Market Price Earnings Rato (x) 16.6 25.2 15.8 15.9 15.9
Market Dividend Yield (%) 3.0 1.2 1.8 2.4 2.9
Number of IPOs 2 8 13 6 1


15.0 STATUTORY DECLARATIONS

15.1 Signing of Prospectus and Statutory Declaration by the Directors
We the undersigned, who are named in the Prospectus as Directors of Alumex, hereby declare and
confirm that we have read the provisions of the CSE Listing Rules and of the Companies Act No. 07 of
2007 and any amendments to it relating to the issue of this Prospectus and those provisions have
been complied with.
This Prospectus has been seen, read and approved by us and we collectively and individually accept
full responsibility for the accuracy of the information given and confirm that after making all
reasonable enquires and to the best of our knowledge and belief, there are no other facts the
omission of which would make any statement herein misleading or inaccurate. Where
representations regarding the future performance of Alumex have been given in the Prospectus, such
representations have been made after due and careful enquiry of the information available to
Alumex and making assumptions that are considered to be reasonable at the present point in time in
our best judgement.
Name Designation Date Place Signature
Mr.Abeyakumar Mohan
Pandithage
Chairman/
Chief Executive
February 11, 2014 Colombo
Sgd.
Mr. Rohan Palitha Peris Managing Director/
Executive Director
Sgd.
Mr. Dediwela Widanaaracchilage
Executive Director February 11, 2014 Colombo
Sgd.
Mr. Sarath Clement Ganegoda Non-Executive Director February 11, 2014 Colombo
Sgd.
Mr. Ranil Prasad Pathirana Non-Executive Director February 11, 2014 Colombo
Sgd.
Mr. Ali Asghar Akbarally Non-Executive Director February 11, 2014 Colombo
Sgd.
Mr. Huzaifa Hamzaally
Abdulhusein
Non-Executive Director February 11, 2014 Colombo
Sgd.
Dr. Harsha Cabral, PC Independent Non-
Executive Director
Sgd.
Mr. Somasiri Munaweera Independent Non-
Executive Director
Sgd.


15.0 STATUTORY DECLARATIONS

15.1 Signing of Prospectus and Statutory Declaration by the Directors
We the undersigned, who are named in the Prospectus as Directors of Alumex, hereby declare and
confirm that we have read the provisions of the CSE Listing Rules and of the Companies Act No. 07 of
2007 and any amendments to it relating to the issue of this Prospectus and those provisions have
been complied with.
This Prospectus has been seen, read and approved by us and we collectively and individually accept
full responsibility for the accuracy of the information given and confirm that after making all
reasonable enquires and to the best of our knowledge and belief, there are no other facts the
omission of which would make any statement herein misleading or inaccurate. Where
representations regarding the future performance of Alumex have been given in the Prospectus, such
representations have been made after due and careful enquiry of the information available to
Alumex and making assumptions that are considered to be reasonable at the present point in time in
our best judgement.
Name Designation Date Place Signature
Mr.Abeyakumar Mohan
Pandithage
Chairman/
Chief Executive
Sgd.
Mr. Rohan Palitha Peris Managing Director/
Executive Director
Sgd.
Mr. Dediwela Widanaaracchilage
Executive Director February 11, 2014 Colombo
Sgd.
Mr. Sarath Clement Ganegoda Non-Executive Director February 11, 2014 Colombo
Sgd.
Mr. Ranil Prasad Pathirana Non-Executive Director February 11, 2014 Colombo
Sgd.
Mr. Ali Asghar Akbarally Non-Executive Director February 11, 2014 Colombo
Sgd.
Mr. Huzaifa Hamzaally
Abdulhusein
Non-Executive Director February 11, 2014 Colombo
Sgd.
Dr. Harsha Cabral, PC Independent Non-
Executive Director
Sgd.
Mr. Somasiri Munaweera Independent Non-
Executive Director
Sgd.


15.2 Statutory Declaration by Financial Advisors and Managers to the Offering
February 11, 2014
We, NDB Investment Bank Limited, of No. 40, Navam Mawatha, Colombo 02 being the Financial
Advisors and Managers to the Offering of Alumex, hereby declare and confirm to the best of our
knowledge and belief, based on the information provided to us by the Company, the Prospectus
constitutes full and true disclosure of all material facts about the Offering and Alumex, whose
Ordinary Voting Shares are being issued.
The Common Seal of NDB Investment Bank Limited of Sri Lanka affixed on this 11
th
day of February 2014
at Colombo in the presence of two Directors.
Sgd. Sgd.
Director Director

15.3 Statutory Declaration by the Company
February 11, 2014
An application has been made to the CSE for permission to deal in and for a listing for all of the
Ordinary Voting Shares issued by the Company and those Ordinary Voting Shares which are the
subject of this Offering. Such permission will be granted when Shares are listed on the CSE. The CSE
assumes no responsibility for the correctness of any of the statements made or opinions expressed or
reports included in this Prospectus. Listing on the CSE is not to be taken as an indication of the merits
of the Company or of the Shares issued.
The Common Seal of Alumex of Sri Lanka affixed on this 11
th
day February of 2014 at Colombo in the
presence of two Directors.
Sgd. Sgd.
Director Director

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